(a) In this section, “economically disadvantaged county” means a county that has, in comparison to other counties in the state:
(1) below average per capita taxable property value;
(2) below average per capita income; and
(3) above average unemployment.
(a-1) Notwithstanding Subsection (a), a county is considered to be an “economically disadvantaged county” for the purposes of this section if it meets the criteria as laid out in Subsection (a) within the past six years and has been included in no less than five federally declared disasters within the same time period.

(a-2) For a county described by Subsection (a-1), the adjustment to the local matching funds requirement shall be equivalent to the highest adjustment rate set in the last year the county was considered to meet the criteria described in Subsection (a).
(b) Except as provided by Subsection (c), the commission may require, request, or accept from a political subdivision matching or other local funds, rights-of-way, utility adjustments, additional participation, planning, documents, or any other local incentives to make the most efficient use of its highway funding.
(c) In evaluating a proposal to construct, maintain, or extend a highway or for another type of highway project in a political subdivision that consists of all or a portion of an economically disadvantaged county, the commission:
(1) may not consider the absence or value of local incentives provided under Subsection (b) or the value of a benefit received by the state in an agreement under § 791.031, Government Code, beyond the minimum required local matching funds; and
(2) shall adjust the minimum local matching funds requirement after evaluating the political subdivision’s effort and ability to meet the requirement.
(d) In making an adjustment under Subsection (c)(2), the commission may use its in-kind resources and any other available resources to help satisfy a federal requirement.
(e) The commission shall report annually to the governor, the lieutenant governor, and the speaker of the house of representatives on the use of matching funds and local incentives and the ability of the commission to ensure that political subdivisions located in economically disadvantaged counties have equal ability to compete for highway funding with political subdivisions in counties that are not economically disadvantaged.
(f) The commission shall certify a county as an economically disadvantaged county on an annual basis as soon as possible after the comptroller reports on the economic indicators listed under Subsection (a). A county certified under this section is eligible for an adjustment under Subsection (c)(2).
(g) The commission shall determine whether to make an adjustment under Subsection (c)(2) at the time a political subdivision that consists of all or a portion of an economically disadvantaged county submits a proposal to construct, maintain, or extend a highway or for another type of highway project.
(h) The commission may delegate any of its duties or powers under this section to the director or the director’s designee.