| (a) A private entity may participate in a department
highway construction project through a gift of money or tangible goods.
(b) The department may accept private participation
in a department highway construction project only if it determines
that the private participation will serve the interest of the traveling
public.
(c) A gift governed by this section must meet all the
requirements of this subchapter, including, when required, commission
approval and the execution of a donation agreement.
(d) In addition to the requirements of §1.504
of this subchapter, a donation agreement governed by this section
shall include the following provisions.
(1) Funding arrangement. The agreement shall specify
the portion of construction costs, as defined in §15.56 of this
title (relating to Local Financing of Highway Improvement Projects
on the State Highway System), to be paid by each party.
(2) Indirect Costs. For service projects, as defined
in §15.56 of this title, the private entity shall be responsible
for all indirect costs, as identified by the department.
(3) Interest. The department will not pay interest
on funds provided by the private entity. Funds provided by the private
entity will be deposited and retained in the state treasury.
(4) Conditions. The agreement shall establish any conditions
on the donation, including the method and timing of the donation.
If the donation is a gift of money, full payment must be received
before the department incurs any costs for the project.
(5) Responsibilities of the parties. The agreement
shall identify the responsibilities of each party.
(6) Design and construction.
(A) All aspects of the project shall be carried out
in compliance with applicable federal and state laws and regulations.
(B) The project shall be designed in accordance with
the latest department policies, procedures, standards, and guidelines.
(C) The department shall award and manage all construction
work.
(7) Termination. If the private entity withdraws from
the project after the agreement is executed, it shall be responsible
for all direct and indirect project costs incurred by the department
for the portion of the project in which the private entity was participating.
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