TITLE 43. TRANSPORTATION

PART 1. TEXAS DEPARTMENT OF TRANSPORTATION

CHAPTER 4. EMPLOYMENT PRACTICES

SUBCHAPTER C. EMPLOYMENT AND EDUCATION PROGRAMS

The Texas Department of Transportation (department) proposes the amendments to §4.21 and §4.25, concerning Employment and Education Programs.

EXPLANATION OF PROPOSED AMENDMENTS

This rulemaking makes changes to the department's conditional grant program, which provides financial assistance to eligible economically disadvantaged students who intend to work for the department in civil engineering or another profession for which there is a critical need, to increase flexibility for both applicants and administrators of the program and to provide greater outreach opportunities for the program and increase yearly applications. Overall, the changes to the program will continue to promote educational opportunities in the transportation industry to underprivileged communities.

Amendments to §4.21, Definitions, change the term "academic school year" to "academic year" to provide clarity concerning the use of this term used in the subchapter. The amendments delete the definitions of "available grants" and "student intern program performance evaluation" because they are not used in the rules and delete "Texas resident" as being unnecessary. In the definition of "economically disadvantaged student" the Federal Poverty Guideline limit is increased from 225% to 250% to account for fluctuations of poverty levels and rising costs for education.

Amendments to §4.25, Conditional Grant Program, make several changes to the program. In subsection (d)(3), the application period is changed from an annual to a bi-annual period to allow for greater application flexibility and earlier program entry for students actively obtaining a bachelor's degree. In subsection (e)(1) the word "applicable" is added to provide clearer scoring guidelines since not all criteria set out in subparagraphs (A) - (F) will be required. In subsection (e)(1)(D) "vocational education" is changed to "career and technical education," which is the currently used term. In subsection (g)(3) the total grant amount is increased from $4,000 to $5,000 per semester to account for increasing tuition costs.

The substance of current §4.25(j)(1) is moved into new subsection (i)(2) because it directly relates to the default of the grant agreement. Subsection (i)(2) also provides that college credit hours received while attending high school, will not be considered in determining whether the repayment of grant funds is required if there is a default. This provision is added to clarify that participants who came into the program with dual credit college hours while attending high school will not be held to a different repayment requirement than a person who enters the program as a first-year college student.

FISCAL NOTE

Stephen Stewart, Chief Financial Officer, has determined, in accordance with Government Code, §2001.024(a)(4), that for each of the first five years in which the proposed rules are in effect, there will be no fiscal implications for state or local governments as a result of the department's or commission's enforcing or administering the proposed rules.

LOCAL EMPLOYMENT IMPACT STATEMENT

Dr. Christopher Young, Director, Human Resources Division, has determined that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed rules and therefore, a local employment impact statement is not required under Government Code, §2001.022.

PUBLIC BENEFIT

Dr. Christopher Young, has determined, as required by Government Code, §2001.024(a)(5), that for each year of the first five years in which the proposed rules are in effect, the public benefit anticipated as a result of enforcing or administering the rules will be overall improvements to the department's program review and processes resulting from clearer and more streamlined rules.

COSTS ON REGULATED PERSONS

Dr. Christopher Young, has also determined, as required by Government Code, §2001.024(a)(5), that for each year of that period there are no anticipated economic costs for persons, including a state agency, special district, or local government, required to comply with the proposed rules and therefore, Government Code, §2001.0045, does not apply to this rulemaking.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities, as defined by Government Code, §2006.001, and therefore, an economic impact statement and regulatory flexibility analysis are not required under Government Code, §2006.002.

GOVERNMENT GROWTH IMPACT STATEMENT

Dr. Christopher Young has considered the requirements of Government Code, §2001.0221 and anticipates that the proposed rules will have no effect on government growth. He expects that during the first five years that the rule would be in effect:

(1) it would not create or eliminate a government program;

(2) its implementation would not require the creation of new employee positions or the elimination of existing employee positions;

(3) its implementation would not require an increase or decrease in future legislative appropriations to the agency;

(4) it would not require an increase or decrease in fees paid to the agency;

(5) it would not create a new regulation;

(6) it would not expand, limit, or repeal an existing regulation;

(7) it would increase the number of individuals subject to its applicability; and

(8) it would not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

Dr. Christopher Young has determined that a written takings impact assessment is not required under Government Code, §2007.043.

SUBMITTAL OF COMMENTS

Any person that is required to comply with the proposed rule or any other interested person may provide information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, or may submit written comments on the amendments to §4.21 and §4.25. The information or comments must be submitted to Rule Comments, General Counsel Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483 or to RuleComments@txdot.gov with the subject line "Conditional Grant Program." The deadline for receipt of comments is 5:00 p.m. on May 11, 2026. In accordance with Transportation Code, §201.811(a)(5), a person who submits comments must disclose, in writing with the comments, whether the person does business with the department, may benefit monetarily from the proposed amendments, or is an employee of the department.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Education Code, §56.144, which requires the department to adopt rules for the selection for grants under the conditional grant program, and Education Code, §56.145, which authorizes the department to adopt rules to establish conditions under which all or part of a conditional grant is required to be repaid.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING - Education Code, Chapter 56, Subchapter I.

§4.21. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Academic [school] year--Two academic semesters (i.e., fall semester and spring semester, or if the educational institution is on a trimester system then fall, winter, or spring quarters).

(2) [(3)] College cooperative student--A person who is enrolled in an eligible higher educational institution's cooperative education program.

(3) [(4)] Commission--Texas Transportation Commission.

(4) [(5)] Conditional grant--Financial assistance awarded to an eligible student.

(5) [(6)] Cooperative education program--A plan of education that provides for alternating periods of study and employment during the academic year; working agreements among the department, educational institution and student; paid supervised work experiences related to the student's academic studies or career goals; and experience sufficient in duration to qualify for career entry level position, if applicable.

(6) [(7)] Cooperative Education Program Standards Form--A form that states the rules of the High School Cooperative Education Program.

(7) [(8)] Declaration of intent--A signed and notarized document stating that the student intends to work for the department in an eligible profession for two academic years immediately following the date of the student's receipt of an eligible degree.

(8) [(9)] Department--The Texas Department of Transportation.

(9) [(10)] Economically disadvantaged student--A student who is a member of a household with a family annual adjusted gross income of not more than 250% [225%] of the Federal Poverty Level.

(10) [(11)] Eligible degree--A baccalaureate degree from an accredited public institution in the State of Texas in a field of study that satisfies the department's minimum education requirement for an eligible profession.

(11) [(12)] Eligible professions--Professions for which the department determines there is a critical need.

(12) [(13)] Form I-9 Employment Verification--A form attesting to eligibility to work in the United States in compliance with the Immigration Reform and Control Act of 1986.

(13) [(14)] HSCEP--High School Cooperative Education Program.

(14) [(15)] Intern--A post-secondary school student who is employed for a specific length of time.

(15) [(16)] Institution--Any public senior (four-year) college or university of higher education as certified by the Coordinating Board, Texas College and University System in accordance with the Education Code, §61.003.

(16) [(17)] Stipend--A monthly amount of financial assistance based on financial need which is determined by the financial aid or scholarship office at the student's educational institution.

(17) [(18)] Student cooperative program performance evaluation--The department's employment evaluation form used to evaluate college cooperative students.

§4.25. Conditional Grant Program.

(a) Purpose. This section establishes procedures for the administration of a conditional grant program that will provide financial assistance to eligible economically disadvantaged students who intend to work for the department in civil engineering or any other profession for which the department determines there is a critical need. Authority for the creation of the conditional grant program is contained in Education Code, Chapter 56, Subchapter I.

(b) Program. Upon determination by the executive director or the director's designee, the department may provide financial assistance to eligible students who:

(1) declare an intent to seek a baccalaureate degree from an institution in the State of Texas in a field of study that satisfies the department's minimum education requirement for an eligible profession;

(2) intend to work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree from an institution in the State of Texas; and

(3) exhibit a high level of academic performance.

(c) Eligibility.

(1) Initial eligibility. To be initially eligible for a conditional grant, a student must:

(A) complete and file with the department evidence of household income and, on forms prescribed by the department, a conditional grant application and a declaration of intent to become a member of an eligible profession and work for the department for the two academic years immediately following the date of the student's receipt of an eligible degree;

(B) enroll in an institution;

(C) be a Texas resident as defined by the Texas Higher Education Coordinating Board;

(D) be an economically disadvantaged student; and

(E) have complied with any other requirements adopted by the department.

(2) Maintaining eligibility. In order to maintain eligibility, a student must be enrolled each semester in an institution in a course of instruction leading toward a degree in an eligible profession and, except as provided in paragraph (4) of this subsection, must:

(A) maintain an overall institutional grade point average of at least 2.5 on a four-point scale; and

(B) receive credit for not fewer than 12 hours each semester toward the student's degree program.

(3) Exception.

(A) If, during not more than one semester, a student fails to meet the grade point or credit hour requirements of this subsection, he or she will continue to maintain eligibility.

(B) Subparagraph (A) of this paragraph does not apply to a freshman student, unless the director of the department's Human Resources Division or designee determines that the student has a reasonable opportunity to comply with the requirements of subparagraph [Subparagraph] (C) of this paragraph. The director will base his or her decision on an overall assessment of the student's freshman academic record.

(C) Students who fail to meet the grade point requirement, but are allowed to maintain eligibility under this paragraph, must receive credit for not fewer than 12 hours each semester and attain a semester grade point average of 2.5 during all semesters thereafter until the student graduates.

(4) Hardship waiver. The department may waive, upon approval of the executive director, the requirement that a student receive credit for not fewer than 12 hours each semester if a student demonstrates hardship. Hardship may involve serious illness, family emergency, or other extraordinary circumstances beyond the control of the student.

(d) Application.

(1) To apply for a conditional grant, a student must submit to the department:

(A) a completed application in a form prescribed by the department; and

(B) a declaration of intent.

(2) The application will require information and documentation relating to residency status, secondary school performance or college performance, the current or intended enrollment institution, the sworn statement as required by subsection (k) of this section, and such other information the department deems necessary to determine eligibility pursuant to subsection (c) of this section.

(3) An application must be submitted by April 1st [of each year] for the [subsequent] fall semester of that year or September 1 for the [and] spring semester of the next year [semesters admission].

(e) Selection.

(1) Academics. The department will rank applicants according to the following applicable selection criteria:

(A) secondary school or college grade point average;

(B) SAT or ACT score;

(C) honors and awards from, and participation in technical or academic organizations such as Texas Prefreshman Engineering Program, Texas Alliance for Minorities in Engineering, National Honor Society, Debate Team, or Dean's List;

(D) career and technical [vocational] education;

(E) work experience; and

(F) whether the applicant is the first generation of the applicant's family to attend or graduate from an undergraduate program or from a graduate or professional program.

(2) Financial need. Applicants that meet a minimum academic threshold using the criteria in paragraph (1) of this subsection will be ranked giving highest priority to students who demonstrate the greatest financial need as measured by the Federal Poverty Guidelines.

(f) Grant agreement.

(1) The department will send written notice to applicants selected to receive a grant informing them of the amount to be awarded for the conditional grant as certified by their educational institution.

(2) Each selected student will be required to execute a grant agreement prior to receiving a conditional grant. The grant agreement will be in a form prescribed by the department and will set forth the terms and conditions of the grant, including, but not limited to, the amount of the grant and the requirements of continued eligibility pursuant to subsection (c) of this section.

(g) Conditional grant.

(1) The amount of a conditional grant is the sum of:

(A) the amount of tuition and fees for the student, as certified by the institution; and

(B) a stipend based upon financial need as provided by subsection (h) of this section.

(2) Each semester the department will distribute a conditional grant for each eligible student on receipt of an enrollment report and certification of the amount of tuition, fees, and stipend (if any) for the student from the institution.

(3) The total amount of any one conditional grant may not exceed the certified amount of tuition and fees for the student and a stipend for each whole calendar month in an amount determined by the department, but may not exceed $5,000 [$4,000] per academic semester based on financial need.

(4) If the amount appropriated to the department for conditional grants is less than the estimated amount of all unpaid conditional grants, the department will proportionally reduce each unpaid conditional grant.

(h) Stipend.

(1) A student desiring to receive a stipend must:

(A) sign a financial information release statement; and

(B) complete the required financial need forms at the institution.

(2) The department will award a stipend to the student upon certification by the institution of the student's certified financial need.

(3) Costs of room and board will be included in the stipend amount.

(i) Default.

(1) The department will declare a student to be in default of the grant agreement and will require the student to repay all conditional grant funds received from the department if the student:

(A) [(1)] withdraws from the institution; or

(B) [(2)] fails to comply with one or more requirements of the grant agreement.

(j) Repayment.

(1) [(2)] If a student is required to repay funds pursuant to subsection (i) of this section, the department will establish a repayment schedule of:

(A) 120 equal monthly installments for students who received grants for four years or more;

(B) 96 equal monthly installments for students who received grants for more than three years, but less than four years;

(C) 72 equal monthly installments for students who received grants for more than two years, but less than three years; or

(D) 48 equal monthly installments for students who received grants for less than two years.

(2) [(3)] The installment is based on the amount owed the department and must be paid each month. Repayments may be made in fewer than the required number of installments.

(3) [(4)] A student will not be required to begin payments until after the student's expected date of graduation as determined on the date of the determination of default.

(4) [(5)] A student who completes an eligible degree and does not work for the department for two academic years immediately following the date of the student's receipt of an eligible degree from a Texas institution will be required to:

(A) begin payments three months subsequent to the determination of default; and

(B) pay a minimum monthly installment of $200.

(5) [(6)] The department will waive repayment of any remaining amounts for a student who defaults and graduates with an eligible degree and honors the original agreement to work for the department in an eligible profession for at least two academic years commencing immediately upon graduation.

(6) [(7)] The department may temporarily reduce or defer the required payments or extend the prescribed repayment period, upon approval of the executive director, if a student submits a formal request, demonstrates his or her inability to pay due to catastrophic illness or family emergency, and follows all conditional grant requirements during the deferment period. Any reduction, deferral, or extension will not relieve a student of his or her responsibility to repay all funds.

(7) [(8)] Credit bureau notification. The department will notify the appropriate credit bureaus or agencies if a student fails to repay the department or fails to adhere to the terms of the conditional grant agreement.

(k) Child support statement.

(1) In accordance with the Family Code, §231.006, a child support obligor who is 30 or more days delinquent in paying child support is not eligible to receive funds under this subchapter.

(2) A student shall provide along with the application submitted as required by subsection (d) of this section a signed, sworn statement, in a form and manner prescribed by the department, affirming that the student is not 30 or more days delinquent in providing child support under a court order or a written repayment agreement.

(3) A student who is ineligible under this section shall remain ineligible to receive funds under this subchapter until:

(A) all arrearages have been paid; or

(B) the student is in compliance with a written repayment agreement or court order as to any existing delinquency.

(4) A student who is found to have submitted a falsely sworn statement under this section shall, upon demand, remit to the department all funds received while ineligible under paragraph (1) of this subsection.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 25, 2026.

TRD-202601376

James Kirk

Senior General Counsel

Texas Department of Transportation

Earliest possible date of adoption: May 10, 2026

For further information, please call: (512) 416-3180

CHAPTER 12. PUBLIC DONATION AND PARTICIPATION PROGRAM

SUBCHAPTER A. PUBLIC PARTICIPATION PROGRAMS

The Texas Department of Transportation (department) proposes amendments to §12.2 concerning Definitions and repeal of §12.5 concerning the Landscape Cost Sharing Program.

EXPLANATION OF PROPOSED AMENDMENTS AND REPEAL

This rulemaking repeals §12.5, Landscape Cost Sharing Program, because the program is no longer funded.

The history of the Landscape Cost Sharing Program (program) is not fully documented, but available records indicate that it has been in place since 1985 and was historically funded through an allocation from the Texas Transportation Commission (commission).

The purpose of the program is to allow individuals, private businesses, organizations, and local governments an opportunity to support the aesthetic improvement of the state highway system by sharing the project development, establishment, and maintenance costs of landscaping the state highway system. Section 12.5 sets forth policies and procedures governing the program.

Although no funding has been allocated to the program since approximately 2008, several other programs and mechanisms remain available for individuals, private businesses, and local governments to participate in landscaping projects. These include Advanced Funding Agreements under Chapter 15, Subchapter E, the Adopt-a-Highway for Landscaping Program (§12.4), and the Landscape Partnership Program (§12.7).

Amendments to §12.2, Definitions, delete the definition of "pedestrian landscaping" because the term was used only in the §12.5 program that is being repealed.

Section 12.5, Landscape Cost Sharing Program, is repealed.

FISCAL NOTE

Stephen Stewart, Chief Financial Officer, has determined, in accordance with Government Code, §2001.024(a)(4), that for each of the first five years in which the proposed rules are in effect, there will be no fiscal implications for state or local governments as a result of the department's or commission's enforcing or administering the proposed rules.

LOCAL EMPLOYMENT IMPACT STATEMENT

Jason Pike, Director, Design Division has determined that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed rules and therefore, a local employment impact statement is not required under Government Code, §2001.022.

PUBLIC BENEFIT

Mr. Pike has determined, as required by Government Code, §2001.024(a)(5), that for each year of the first five years in which the proposed rules are in effect, the public benefit anticipated as a result of enforcing or administering the rules will be increased clarity and efficiency within the program by removing a redundant program that is no longer in use.

COSTS ON REGULATED PERSONS

Mr. Pike has also determined, as required by Government Code, §2001.024(a)(5), that for each year of that period there are no anticipated economic costs for persons, including a state agency, special district, or local government, required to comply with the proposed rules and therefore, Government Code, §2001.0045, does not apply to this rulemaking.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities, as defined by Government Code, §2006.001, and therefore, an economic impact statement and regulatory flexibility analysis are not required under Government Code, §2006.002.

GOVERNMENT GROWTH IMPACT STATEMENT

Mr. Pike has considered the requirements of Government Code, §2001.0221 and anticipates that the proposed rules will have no effect on government growth. He expects that during the first five years that the rule would be in effect:

(1) it would eliminate a government program;

(2) its implementation would not require the creation of new employee positions or the elimination of existing employee positions;

(3) its implementation would not require an increase or decrease in future legislative appropriations to the agency;

(4) it would not require an increase or decrease in fees paid to the agency;

(5) it would not create a new regulation;

(6) it would repeal an existing regulation;

(7) it would not increase or decrease the number of individuals subject to its applicability; and

(8) it would not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

Mr. Pike has determined that a written takings impact assessment is not required under Government Code, §2007.043.

SUBMITTAL OF INFORMATION AND COMMENTS

Any person that is required to comply with the proposed rule or any other interested person may provide information related to the cost, benefit, or effect of the proposed rule, including any applicable data, research, or analysis, or may submit written comments on the amendments to §12.2 and the repeal of §12.5. The information or comments must be submitted to Rule Comments, General Counsel Division, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483 or to RuleComments@txdot.gov with the subject line "Landscape Cost Sharing Program". The deadline for receipt of the information or comments is 5:00 p.m. on May 11, 2026. In accordance with Transportation Code, §201.811(a)(5), a person who makes a submission must disclose, in writing with the submission, whether the person does business with the department, may benefit monetarily from the proposed amendments, or is an employee of the department.

STATUTORY AUTHORITY

The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §392.003, which authorizes the commission to establish rules concerning donations for landscape installation and maintenance.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, §392.003.

§12.2. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Adopt-a-Highway coordinator--A district employee responsible for coordinating the Adopt-a-Highway program within the district's counties.

(2) Adopted section--A section of state highway right of way or an airport approved for adoption by a group.

(3) Airport--A publicly-owned airport that is included in the Texas Airport System Plan (TASP).

(4) Aviation Division--A division of the department.

(5) Authorized representative--An individual with the authority to sign agreements for the group or donor.

(6) Commission--The Texas Transportation Commission.

(7) Department--The Texas Department of Transportation.

(8) Design fee--Those engineering or project administration costs or expenses identified prior to the construction of a project.

(9) District--One of the 25 geographical areas, managed by a district engineer, in which the department conducts its primary work activities.

(10) District engineer--The chief executive officer in charge of a district, or his or her designee.

(11) Donation--A contribution of anything of value given to the department.

(12) Donor--The private business or civic organization that donates funds or services for the purpose of participating in the Landscape Cost Sharing or Adopt-a-Freeway Programs.

(13) Family member--Any spouse, sibling, parent, stepparent, grandparent, child, stepchild, aunt, uncle or cousin.

(14) Group--An entity that adopts a section of state highway right of way or an airport.

(15) Highway landscaping--A project design intent which attempts to provide primarily for the installation of native, naturalized, or adapted plant material within the project limits.

(16) Local government--A city or county.

(17) Non-cash contributions--The agreed value of labor, equipment, material, or design services furnished by a local government or donor in support of the project.

(18) [(19)] Project concept plan--The preliminary sketches, drawings, details, estimates, and specifications required by the department to illustrate the type of project development and establishment proposed, and as required for the department to determine if the proposed project is a highway landscaping project or a pedestrian landscaping project.]

(19) [(20)] Project design plan--The final drawings, details, specifications, and estimates as may be required by the department to fully control the work to be performed on the project.

(20) [(21)] Project development--The initial construction and installation of the landscape items in accordance with the project design plan.

(21) [(22)] Project establishment--The landscape maintenance activities required to ensure the viability, upkeep, and continued effectiveness of the project.

(22) [(23)] Project maintenance--The activities performed as determined by the program agreement to ensure the establishment, upkeep, and continued effectiveness of the project.

(23) [(24)] Sponsor--A local government or other public entity that owns or operates an airport.

(24) [(25)] Vandalism--Significant and deliberate damage or defacement that renders a sign unreadable or unsightly.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 25, 2026.

TRD-202601377

James Kirk

Senior General Counsel

Texas Department of Transportation

Earliest possible date of adoption: May 10, 2026

For further information, please call: (713) 448-0530

STATUTORY AUTHORITY

The repeal is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §392.003, which authorizes the commission to establish rules concerning donations for landscape installation and maintenance.

CROSS REFERENCE TO STATUTES IMPLEMENTED BY THIS RULEMAKING

Transportation Code, §392.003.

§12.5. Landscape Cost Sharing Program.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 25, 2026.

TRD-202601378

James Kirk

Senior General Counsel

Texas Department of Transportation

Earliest possible date of adoption: May 10, 2026

For further information, please call: (713) 448-0530