(a) Commercial establishment and major shopping area application.      
        (1) Applications for commercial establishments or major shopping areas desiring to participate in the information logo sign program are available upon request from the department.       
        (2) A commercial establishment or major shopping area desiring to participate in the information logo sign program must submit an application to the contractor and verify that all requirements are met. Applications must be submitted to the location as stated on the application form. The contractor will verify the eligibility of each applicant.       
        (3) For commercial establishments, a separate application is required for each primary motorist service per interchange per direction of travel. Only one application per commercial establishment per primary motorist service per direction of travel per interchange will be accepted.       
        (4) Applications will be reviewed by the contractor and applicants will be notified in writing if qualified or rejected. Rejected applications will be returned and deficiencies noted.       
        (5) Rejected applicants may resubmit their application when the noted deficiencies have been corrected.       
        (6) To be eligible for the selection process for the available business logo space(s), available first alternate position, or available second alternate position, a commercial establishment must have submitted a qualified application before the commercial establishment application deadline.       
        (7) The commercial establishment application deadline for the initial installation for a new or existing logo sign assembly drawing will be set as specified by the contractor and approved by the department.       
        (8) Qualified applications received after the commercial establishment application deadline will be placed on file and considered eligible for future drawings.       
      (b) Commercial establishment selection.      
        (1) Available business logo space(s) and relative placement of business logos on the specific information logo sign, available first alternate position, and available second alternate position will be awarded by drawing of the qualified applications received before the commercial establishment application deadline. The relative placement of business logos in available space(s), in order of selection, is upper left, upper middle, upper right, lower left, lower middle, and lower right. For a specific information logo sign that includes more than one service, the relative placement of business logos in available space(s), in order of selection, is left to right and top to bottom for each portion of the sign designated for each service.       
        (2) The drawing will be held publicly by the contractor on a date specified by the contractor and approved by the department in the presence of two or more department employees. When business logo spaces become available, additional drawings will be held publicly as needed in the presence of two or more department employees. Additional drawings of qualified applicants will be held no earlier than 20 days nor later than 45 days after the commercial establishment application deadline.       
        (3) When a business logo space(s) becomes available, the first and second alternates have first right of refusal, respectively, for the available business logo space. If the first alternate accepts an available business logo space, the second alternate then becomes the first alternate with first right of refusal for any existing or future available business logo space. Any remaining available business logo space(s), available first alternate position, or available second alternate position are awarded by the drawings.       
        (4) If the number of qualified applicants is less than or equal to the number of available business logo space(s) at the time of the commercial application deadline, the available spaces will be awarded to the qualified applicants. The random drawing will determine only the relative placement of the business logo signs in the available space(s).       
        (5) The contractor shall notify the commercial establishment of the award of specific information business logo sign space within 10 calendar days of the date of the award. To accept the award, the commercial establishment must execute a written participation agreement with the contractor within 30 calendar days of the date of the award. The participation agreement shall be in a form as prescribed by the department and shall, at a minimum, contain all applicable provisions prescribed by this subchapter.       
      (c) Responsibilities and rights of commercial establishment.      
        (1) The commercial establishment must provide a business logo and, if necessary, ramp business logo(s) within 60 days of notification by the contractor of the contractor's intent to erect the specific information logo signs or ramp signs.       
        (2) A commercial establishment may renew its participation agreement with the contractor on an annual or multi-year basis no later than the date specified by the contractor and approved by the department. If the commercial establishment does not renew the agreement with the contractor, the contractor will remove the business logo at the end of the participation agreement, and will make the vacated space(s) available to other commercial establishments pursuant to subsection (b) of this section.       
      (d) Covering of business logo. A business logo and the ramp business logo(s) of a commercial establishment may be covered by the contractor if the commercial establishment is temporarily closed for a period not exceeding 30 calendar days. Unless removed pursuant to subsection (e) of this section, the business logo and ramp business logo(s) will remain covered until the commercial establishment reopens.     
      (e) Removal of business logo.      
        (1) A business logo of a participating commercial establishment shall be removed by the contractor if the commercial establishment:                  (A) ceases to exist;                   (B) fails to pay the annual rental fee or other fees within 30 calendar days of the due date as specified on the agreement;                   (C) is temporarily closed for more than 30 calendar days;                   (D) does not meet the minimum eligibility requirements of §25.405 of this subchapter, and all corrections are not made within 30 calendar days of written notification;                   (E) is sold, and the new commercial establishment does not continue the original primary motorist service or does not meet the minimum requirements for the primary motorist service;                   (F) has not provided a replacement business logo sign within 60 calendar days of written notification that the business logo is missing, damaged, broken, or faded; or                   (G) relocates and is no longer eligible for participation in the program.         
        (2) Removal of a business logo by the contractor will include the removal of the commercial establishment's ramp business logo sign(s).       
        (3) If the business logo is removed due to the default of the commercial establishment to perform within the terms of the participation agreement and this subchapter, the participation agreement is terminated between the commercial establishment and the contractor. All funds paid to the contractor by the commercial establishment are forfeited. Upon removal of a business logo, the vacated space becomes available pursuant to subsection (b) of this section. A replacement commercial business is selected, as stated in the commercial establishment selection process.       
        (4) If the business logo is removed permanently due to actions of the department, the participation agreement is terminated between the commercial establishment and the contractor. Advance funds paid to the contractor by the commercial establishment will be pro-rated as per the date of removal, and any remaining amounts refunded to the commercial establishment.       
      (f) Responsibilities and rights of the major shopping area. The major shopping area may renew its participation agreement with the contractor on an annual or multi-year basis at a date specified by the contractor and approved by the department. If the major shopping area does not renew the agreement with the contractor, the contractor will remove the guide signs and ramp signs at the end of the participation agreement.     
      (g) Covering or removal of major shopping area guide sign.      
        (1) A major shopping area guide sign(s) of a major shopping area may be covered by the contractor if:                  (A) the major shopping area is temporarily closed for a period not exceeding 30 calendar days; or                   (B) the department finds the parking is so insufficient that it causes undue congestion to the state highway system.         
        (2) A major shopping area guide sign of a major shopping area may be covered until:                  (A) the property reopens; or                   (B) the department finds there is now sufficient parking.         
        (3) A major shopping area guide sign of a participating major shopping area shall be removed by the contractor if the major shopping area:                  (A) ceases to exist;                   (B) fails to pay the annual rental fee or other fees within 30 calendar days of the due date as specified in the agreement;                   (C) is temporarily closed for more than 30 calendar days;                   (D) does not meet the minimum eligibility requirements of §25.406 of this subchapter, and all corrections are not made within 30 calendar days of written notification;                   (E) is sold, and the new major shopping area does not continue as a public retail business; or                   (F) does not correct the parking insufficiency within 90-days' notice by the department.         
        (4) Removal of a major shopping area guide sign by the contractor will include the removal of the major shopping area's ramp sign(s).       
        (5) If the major shopping area guide sign is removed due to the default of the major shopping area to perform within the terms of the participation agreement and the requirements as stated herein, the participation agreement is terminated between the major shopping area and the contractor. All funds paid to the contractor by the major shopping area are forfeited.       
        (6) If the major shopping area guide sign is removed permanently due to actions of the department, the participation agreement is terminated between the major shopping area and the contractor. Advance funds paid to the contractor by the major shopping area will be pro-rated as per the date of removal, and any remaining amounts refunded to the major shopping area.       
     Source Note:        The provisions of this §25.407 adopted to be effective November 17, 2005, 30 TexReg 7497; amended to be effective January 7, 2015, 40 TexReg 102