(a) To be eligible for state reimbursement:
  (1) all costs incurred must be as a result of beach cleaning and maintenance activities only on public beaches as defined in §25.1 of this title (relating to Definitions);
  (2) all costs must be documented as required by §25.19 of this title (relating to Maintenance of Records); and
  (3) cities and counties must have approved applications in force.
(b) A participant is not eligible to receive state funds for administrative costs in excess of 10% of the total amount of reimbursement received from the state by the participant. In order to receive reimbursement for administrative expenses, the expenses incurred must be reasonable and directly related to beach cleaning or beach maintenance.
(c) State laws and policies prohibit the state from participating in the purchase of equipment not assigned to a state agency. The agency will recognize as eligible for costs only equipment rental during the period of an approved project and only when such equipment is actually used for beach cleaning activities. Rental rates may be based on actual rental costs or the participant's approved rental rates for the equipment if it is owned by the applicant. Necessary expendable items such as trash receptacles are eligible costs, but the agency reserves the right to determine which items are expendable in nature.
(d) Costs incurred within the fiscal year the application is approved but prior to the date the application is approved will be eligible for reimbursement if documented in the same manner as reimbursement costs incurred after an application is approved.
(e) Costs incurred by coastal cities and counties in implementing beach nourishment projects, conducted under Natural Resources Code, Chapter 33, Subchapter H (relating to Coastal Erosion), may qualify as eligible expenses under §25.13(a) of this title (relating to Extent of State Assistance) and for program reimbursement subject to §25.3 of this title (relating to Administration of Funds).

Source Note: The provisions of this §25.12 adopted to be effective April 14, 1992, 17 TexReg 2241; amended to be effective July 9, 1993, 18 TexReg 4193; amended to be effective May 5, 1997, 22 TexReg 3714; amended to be effective August 31, 2004, 29 TexReg 8372; amended to be effective December 27, 2010, 35 TexReg 11705