1. (a) Authorization to negotiate final agreement. The executive director will submit to the commission a summary of the final financial terms of a proposed pass-through agreement. The final financial terms may consist of specific payment terms and schedules or may consist of a range of acceptable parameters. The commission may authorize the executive director to negotiate and execute a final agreement only if it finds that:

   1. (1) the project serves the public interest and not merely a private interest;
   2. (2) the proposed pass-through agreement is in the best interest of the state;
   3. (3) the project is compatible with existing and planned transportation facilities; and
   4. (4) the project furthers state, regional, and local transportation plans, programs, policies, and goals.

2. (b) Contents of pass-through agreement. Before any work is done for which reimbursement will be requested through a pass-through toll or fare, the department and the public or private entity shall execute a pass-through agreement containing, at a minimum, the following:

   1. (1) identification of the scope and nature of the work to be performed;
   2. (2) all financial terms, as applicable, including the levels of pass-through tolls or fares, maximum and minimum periodic payments, and maximum and minimum total payments;
   3. (3) allocation of responsibility for all significant work to be performed, including environmental documentation, right of way acquisition, utility adjustments, engineering, construction, and maintenance;
   4. (4) provision for the collection and use of toll or other revenues, if applicable;
   5. (5) all provisions required by state or federal law;
   6. (6) a map showing the location of the project;
   7. (7) a proposed project schedule;
   8. (8) an estimated budget;
   9. (9) procedures and timelines for the submission of materials and for approvals; and
   10. (10) for a local government, a copy of the resolution or ordinance authorizing execution of the agreement.

Source Note:The provisions of this §5.56 adopted to be effective April 15, 2004, 29 TexReg 3640; amended to be effective April 20, 2006, 31 TexReg 3269.