(a) Agreement. Prior to receiving funds under this program, a county must execute an agreement with the department. The agreement, among other things, will include a commitment by the county to:
  (1) place the project on the county road system;
  (2) complete any water and wastewater services that are expected to be placed in or across an approved road project right of way prior to constructing the project;
  (3) expend funds received only on eligible costs;
  (4) comply with all applicable federal, state, and local environmental laws and regulations and permitting requirements;
  (5) maintain the road; and
  (6) comply with the grant management standards in subsection (c) of this section.
(b) Application costs. Costs incurred in the preparation of applications submitted under §15.103 of this subchapter are not reimbursable with funds received under this program.
(c) Grant management standards. A county receiving funds under this program must:
  (1) comply with the Uniform Grant Management Standards promulgated by the Office of the Governor under 1 TAC §§5.141-5.167; and
  (2) upon project selection, submit a financial report that shows how it will use the funds to build the project.
(d) Certification. Upon project completion, a county receiving funds must submit a written certification that it has complied with the requirements of this subchapter, including a certification that the project has been constructed in accordance with those requirements.
(e) Compliance. The executive director may:
  (1) prohibit a county from participating in the program if the executive director determines that the county has not complied with one or more requirements of this subchapter;
  (2) prohibit a county from continuing to participate in the program until such time as the executive director determines that the county has complied with all requirements of this subchapter; or
  (3) eliminate a project from participation in the program if the project is not implemented within a reasonable time, as determined by the department in consultation with the county (in the absence of information suggesting that a shorter or longer period is appropriate, three years from the date of the agreement with the department is considered appropriate).
(f) Reimbursement. If a county does not complete a project, the department may seek reimbursement of funds received by the county for that project.

Source Note: The provisions of this §15.106 adopted to be effective January 2, 2002, 26 TexReg 11047