Anchor: #CHDHADGC

Section 4: Payment Procedures

If the contractual agreement between TxDOT and an LG requires the LG to be the acquiring agency, TxDOT will reimburse costs of the ROW to the LG upon acquisition of title acceptable to TxDOT. Title to each parcel must be in the name of the State of Texas. If the parcel is acquired through ED, payment to the LG will be made upon entry of a final judgment vesting title in the State of Texas. The procedures for reimbursement by TxDOT to the LG must be described in any contractual agreement executed between the parties. Any changes in this procedure must be approved by the ROW Division and an amended contractual agreement should be prepared and executed by the parties detailing the change. The procedures for payment to the LG should follow standard payment procedures described in Volume 2 - Right of Way Acquisition, Payment Policies and Procedures for State and LG.

If the contractual agreement requires TxDOT to be the acquiring agency, the preferred procedure is for the LG to contribute its' fixed share of the costs of the ROW at the time of execution of the contractual agreement. There may be instances when it may create an undue burden on the LG to contribute all the required funds at the time of execution of the contract. In those instances, any periodic payment arrangement must be approved by the Executive Director of TxDOT (see Special Approval Transmittal Form, per 43TAC §15.52, General Services Division’s Contract Services Office for form) and included in the contractual agreement. Another instance would be the LG would want their share to be a specified percentage instead of the fixed amount share which also requires approval by the Executive Director of TxDOT. Payment of the LG's fixed share should be given to the applicable Right of Way staff and immediately transmitted to the Finance Division using the Department’s Rapid Deposit Account for deposit in the proper account.

Upon delivery to TxDOT of acceptable instruments conveying to the State the required ROW, a payment for the reimbursement to the LG will be prepared and transmitted to the Comptroller of Public Accounts.

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