TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 1. MANAGEMENT

Subchapter B. PUBLIC MEETINGS AND HEARINGS

43 TAC §1.4, §1.5

The Texas Department of Transportation (department) adopts amendments to §1.4, Public Access to Commission Meetings, and §1.5, Public Hearings, both concerning public comment. The amendments to §1.4 are adopted without changes to the proposed text as published in the February 10, 2012, issue of the Texas Register (37 TexReg 666) and will not be republished. The amendments to §1.5 are adopted with changes to the proposed text as published in the February 10, 2012, issue of the Texas Register (37 TexReg 666).

EXPLANATION OF PROPOSED AMENDMENTS

S.B. No. 1420, 82nd Legislature, Regular Session, 2011, the department's sunset bill, amended Transportation Code, §201.802(a), to require the Texas Transportation Commission (commission) to develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and speak on any issue under the jurisdiction of the department, rather than under the jurisdiction of the commission, as required before the amendment. The commission previously implemented the policies that were required under the previous statute. This rule amends the current rules to clarify that the commission will hear public comment on an issue within the jurisdiction of the department. The change will have little, if any, effect on the commission's operations. The commission is ultimately responsible for the operation of the department and for the related policy-making decisions; therefore, the jurisdiction of the commission includes all of the matters that are within the jurisdiction of the department.

Amendments to §1.4 change the word "commission" to "department" in subsections (c)(2) and (d)(1) as required by the statutory change. The change to subsection (c)(2) authorizes the chair to place an item on a commission meeting agenda if the chair determines that the proposed item is within the jurisdiction of the department and concerns a matter with sufficient public interest to justify its placement on the agenda. The change to subsection (d)(1) provides that at each regular business meeting after consideration of the posted agenda, the commission will receive public comment on any other matter that is under the jurisdiction of the department.

Amendments to §1.5 change the word "commission" to "department" in subsection (a)(8). The change authorizes the commission to hold public hearings to accept public comment on any issue under the jurisdiction of the department if acceptance of the public comment is required by law or considered appropriate by the commission.

After the publication of these proposed rules, the department determined that additional non-substantive changes to §1.5 are necessary to provide accurate statutory and rule citations within the section. Amendments to §1.5(a)(2) provide a reference to the specific statutory authority for a Gulf Intracoastal Waterway (GIWW) hearing by changing the citation from Transportation Code, Chapter 51, to Transportation Code, §51.006, and add a cross-reference to Chapter 2 of the department rules which apply to the holding of a GIWW hearing. Amendments to §1.5(a)(3), which concerns hearings relating to proposed transportation projects, add a cross-reference to Chapter 2 of the department rules to correct inaccuracies in the references to rule sections that were caused by the recent reorganization of that chapter.

COMMENTS

No comments on the proposed amendments were received.

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.

CROSS REFERENCE TO STATUTE

Transportation Code, §201.802.

§1.5.Public Hearings.

(a) Subject of hearings. The commission may hold public hearings to:

(1) consider the adoption of rules, in accordance with the Administrative Procedure Act, Government Code, Chapter 2001;

(2) receive evidence and testimony concerning the desirability of acquiring dredge material disposal sites and of any widening, relocation, or alteration of the main channel of the Gulf Intracoastal Waterway, in accordance with Transportation Code, §51.006 and Chapter 2 of this title (relating to Environmental Review of Transportation Projects);

(3) provide for public input regarding the design, schematic layout, and environmental impact of transportation projects, in accordance with Transportation Code, §203.021, and Chapter 2 of this title;

(4) consider maximum prima facie speed limits on highways in the state highway system that are near public or private elementary or secondary schools or institutions of higher education, in accordance with Transportation Code, §545.357;

(5) annually receive public input on the commission's highway project selection process and the relative importance of the various criteria on which the commission bases its project selection decisions, in accordance with Transportation Code, §201.602;

(6) receive comments from interested persons prior to converting a segment of the non-tolled state highway system to a toll project under Transportation Code, §228.203;

(7) receive comments from interested parties prior to approving any financial assistance under Transportation Code, §21.111, relating to aviation facilities development; and

(8) provide, when deemed appropriate by the commission or when otherwise required by law, for public input regarding any other issue under the jurisdiction of the department.

(b) Authorized representative. The executive director or an employee of the department designated by the executive director may conduct public hearings held under subsection (a)(1), (3), (7), and (8) of this section.

(c) Conduct and decorum. Public hearings will be conducted in a manner that maximizes public access and input while maintaining proper decorum and orderliness, and will be governed by the following guidelines.

(1) Questioning of those making presentations will be reserved to commissioners, the executive director, or, if applicable, the presiding officer.

(2) Organizations, associations, or groups are encouraged to present their commonly held views and same or similar comments through a representative member where possible.

(3) Presentations shall remain pertinent to the issue being discussed.

(4) A person who disrupts a public hearing must leave the hearing room if ordered to do so by the chair or the presiding officer.

(5) Time allotted to one speaker may not be reassigned to another speaker.

(d) Disability accommodation. Persons with disabilities who have special communication or accommodation needs and who plan to attend a hearing to be held by the commission may contact the office of the secretary to the commission in Austin. In the case of a hearing to be conducted by the department, those persons may contact the public affairs officer whose address and telephone number appear in the public notice for that hearing. Requests should be made at least two days before the hearing. The department will make every reasonable effort to accommodate these needs.

(e) Language accommodation. For a hearing held in an area with a substantial Spanish speaking population, the department will provide:

(1) notice of the hearing in both English and Spanish; and

(2) upon request, Spanish translation.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 27, 2012.

TRD-201202166

Bob Jackson

General Counsel

Texas Department of Transportation

Effective date: May 17, 2012

Proposal publication date: February 10, 2012

For further information, please call: (512) 463-8683


Chapter 10. ETHICAL CONDUCT BY ENTITIES DOING BUSINESS WITH THE DEPARTMENT

The Texas Department of Transportation (department) adopts amendments to §10.6, concerning Conflict of Interest, and §10.102, concerning Consequences of Violation. The amendments to §10.6 and §10.102 are adopted with changes to the proposed text as published in the February 10, 2012, issue of the Texas Register (37 TexReg 668).

EXPLANATION OF ADOPTED AMENDMENTS

The department is adopting these amendments to expand the definition of conflict of interest to include revolving door restrictions for certain former upper-level employees and to add additional consequences to the current sanction provisions for violating the new prohibitions.

Amendments to §10.6 expand the definition of conflict of interest to include certain activities that former upper-level department employees may perform on behalf of their new employers. The rule imposes on certain former upper-level employees of the department a one-year ban that prohibits them from soliciting business from the department or attempting to influence the Texas Transportation Commission (commission) on behalf of a business entity. The ban does not apply for interim positions and does not apply to personal communication with the department or commission unless the individual attempts to solicit business or influence a decision on behalf of the current employer. Subsection (b)(2) prohibits all former employees whose last salary was at or above the level of the state's Salary Group A17 from working for a business entity on any matter that they worked on while employed by the department. Subsection (b)(2) is similar to the prohibition in Government Code, §572.054(b), which is subject to statutory interpretation by the Texas Ethics Commission. The department will follow the Texas Ethics Commission's opinions related to that statutory provision in making its determinations under subsection (b)(3). Subsection (e) provides a method for a former employee or entity that is subject to subsection (b) to ask for a determination of whether a conflict of interest would exist in a specified situation. The department will respond in writing to a proper request. Subsection (f) makes subsection (b)(1) applicable only to employees who leave the department on or after the effective date of these rules.

Appeals would be handled through existing appeals processes. A disqualification could be appealed by the filing of a protest, denial of payment could be appealed by the filing of a contract claim, and regular sanctions will be handled through the sanction appeal process.

The amendments to §10.6 are needed in order to provide a fair and unbiased contracting system and to ensure high standards of ethics and fairness in the administration of the department's programs.

Amendments to §10.102 allow the department to impose non-sanction consequences for entities whose employees violate the new provisions of §10.6 under a contract with the department. In addition to possible sanctions, the department may disqualify an entity from participating in the contract or it may refuse to pay the entity for any work performed by the former employee under the contract. This amendment is intended to deter violations of the revolving door restrictions and to provide the department with an appropriate remedy should a violation occur. Having a former department employee on staff does not, in itself, constitute a violation of these rules and will not automatically disqualify an entity from any contract or payment. The department will not disqualify an entity or refuse payment if the entity was properly acting in reliance on a written determination issued by the department under §10.6(e).

COMMENTS

Comments on the proposed amendments were received from the American Council of Engineering Companies of Texas (ACEC) and from an individual.

Comment: One commenter recommended that the words "at or" be deleted from §10.6(c)(1) because it would, in some instances, subject district engineers, division directors, office directors, and region directors to the same restrictions as members of the Administration.

Response: The department agrees that all positions at or above the level of district engineer, division director, office director, and region director should be subject to the same restrictions. Section 10.6(b)(1) has been revised to apply a one-year ban on certain contacts with the department to all former employees at or above the level of district engineer, division director, office director, or region director.

Comment: One individual commented that these post-employment restrictions might discourage qualified professionals from accepting upper-level positions at the department.

Response: The department disagrees with this comment. The revolving door restrictions merely restate current law, and the time restriction on influencing the department does not prevent former employees from accepting private-sector employment, it bars only certain limited actions that could be detrimental to the public trust.

Comment: ACEC and one other commenter recommended that the changes be made to apply only to employees who separate from the agency after the effective date of the changes.

Response: The department agrees with this comment with regard to the one-year ban and has added §10.6(f) to make the ban applicable only to individuals who leave the department on or after the effective date of the rule. The department declines to add a grandfather clause for the general revolving door restrictions because those restrictions are not different than currently applicable state law.

Comment: ACEC commented that the department should not expand its rules beyond the law.

Response: The department disagrees with this comment. Any behavior that might reasonably give rise to a perception that favoritism plays a part in the award of department contracts is harmful to the integrity of the department's contracting system and serves to discourage qualified providers from participating. The rule's modest expansion of the provisions of the revolving door statutes to the higher-level administrative positions will address those concerns and will reinforce the department's commitment to integrity and ethical behavior.

Comment: ACEC commented that there is no basis for distinguishing between for-profit entities and government and nonprofit entities.

Response: The department distinguishes between for-profit entities and government and nonprofit entities because the legislature has done the same in the revolving door statute. (See the definitions of "person" and "business entity" in Government Code, §572.002(7) and (2), respectively.) A major purpose of revolving door laws is to preserve current government employees from being influenced, consciously or unconsciously, by the prospect of potential lucrative employment when making decisions that affect private entities. Entities that are not driven by profit motives would not have the same incentive to make employment offers to former department employees.

Comment: ACEC questioned whether the department is a regulatory agency under the revolving door statute and commented that the wording in §10.6(b)(3) conflicts with the revolving door statute.

Response: The department is a regulatory agency. The revolving door statute defines "regulatory agency" as any statewide executive agency having the power to adopt rules (Government Code, §572.002(8) and §572.004). The language in the rule closely tracks the language in the revolving door statute, and the department will follow the Texas Ethics Commission's opinions related to that statutory provision in making determinations under subsection (b)(3).

Comment: ACEC commented that the revolving door prohibitions should not be lifetime.

Response: The rule merely restates the lifetime prohibition found in the revolving door statute.

Additional change:

The department, in its discretion rather than in response to comments, determined that a change to the proposed rules is necessary to provide more certainty for persons affected by the rules. The change adds new subsection (e) to §10.6 which provides a method for a former department employee or entity that is subject to the rules to ask for a written determination of whether a conflict of interest would exist in a specified situation. The department will promptly respond to a written request that contains a concise explanation of the relevant facts of the situation. An accompanying change added in §10.102(b) prohibits the department from imposing sanctions on an entity on the basis of the entity violating the revolving door rules in a particular situation if the entity properly acted in reliance on a written determination of the department provided under §10.6(e).

Subchapter A. GENERAL PROVISIONS

43 TAC §10.6

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.

CROSS REFERENCE TO STATUTE

Government Code, §572.054.

§10.6.Conflict of Interest.

(a) For the purposes of this chapter, a conflict of interest is a circumstance arising out of existing or past activities, business interests, contractual relationships, or organizational structure of an entity, or a familial or domestic living relationship between a department employee and an employee of the entity, and because of which:

(1) the entity's objectivity in performing the scope of work sought by the department is or might be affected; or

(2) the entity's performance of services on behalf of the department or participation in an agreement with the department provides or may reasonably appear to provide an unfair competitive advantage to the entity or to a third party.

(b) A for-profit entity, including a sole proprietorship, has a conflict of interest if:

(1) an individual who held a position at or above the level of district engineer, division director, office director, or region director solicits business from or attempts to influence a decision of the commission or department on behalf of that entity within one year after the date of the individual's separation from the department; or

(2) a former department employee whose last salary from the department was at or above the minimum amount prescribed for salary group A17 of the state position classification salary schedule performs work on behalf of that entity regarding a specific investigation, application, request for ruling or determination, contract, claim, or judicial or other proceeding in which the former employee participated, whether through personal involvement or within the former employee's official responsibility, while employed by the department.

(c) Subsection (b)(1) of this section does not apply to a position that is designated as an interim position.

(d) For the purpose of subsection (b)(2) of this section, an individual participated in a matter if the individual made a decision or recommendation on the matter, approved, disapproved, or gave advice on the matter, conducted an investigation related to the matter, or took a similar action related to the matter.

(e) Before submitting a bid or undertaking some other interaction with the department, a for-profit entity or a former employee of the department to whom subsection (b) of this section applies may request from the department a determination of whether the interaction would constitute a conflict of interest under subsection (b) of this section. Such a request must be made in writing and must contain a concise explanation of the relevant facts. The department will not respond to a request under this subsection before consulting with the Office of General Counsel. The department will issue a written determination in response to a valid request made under this subsection as soon as practicable.

(f) Subsection (b)(1) of this section applies only to an individual whose employment with the department ends on or after the date that paragraph takes effect.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 27, 2012.

TRD-201202167

Bob Jackson

General Counsel

Texas Department of Transportation

Effective date: May 17, 2012

Proposal publication date: February 10, 2012

For further information, please call: (512) 463-8683


Subchapter C. REQUIRED CONDUCT BY ENTITIES DOING BUSINESS WITH THE DEPARTMENT

43 TAC §10.102

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the commission with the authority to establish rules for the conduct of the work of the department.

CROSS REFERENCE TO STATUTE

Government Code, §572.054.

§10.102.Consequences of Violation.

(a) An entity's violation of §10.101 of this subchapter (relating to Required Conduct) is a ground for the imposition of sanctions, score reduction, or removal from precertification status under this chapter.

(b) In addition to any consequences imposed under subsection (a) of this section, the department may disqualify an entity with a conflict of interest described by §10.6(b) of this chapter (relating to Conflict of Interest) from participating in a contract to which the conflict applies, or may deny payment for work performed by the former department employee under the contract. The department may not disqualify or deny payment to an entity under this subsection on the basis of facts if the department has issued to the entity a written determination under §10.6 of this chapter that those same facts do not constitute a conflict of interest.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 27, 2012.

TRD-201202168

Bob Jackson

General Counsel

Texas Department of Transportation

Effective date: May 17, 2012

Proposal publication date: February 10, 2012

For further information, please call: (512) 463-8683