(a) The department shall plan, design, and establish a program for designating highways as State Scenic Byways.
(b) The program must include a process by which the department:
(1) receives proposals from political subdivisions or other community groups approved by the department for funding projects in accordance with 23 U.S.C. § 162;
(2) applies for grants under 23 U.S.C. § 162 for the projects; and
(3) allows an applicant who consents to pay for the costs of the projects that are not covered by grants made under 23 U.S.C. § 162.

(c) A highway must be designated as a State Scenic Byway under the program established by this section before the department applies for a grant under Subsection (b)(2) for a project related to the highway.
(d) The department may use money from the state highway fund for a project that receives a grant made under 23 U.S.C. § 162 only for the purpose of satisfying matching funds requirements for the grant.
(e) The department may only designate a highway described by § 391.252 as a State Scenic Byway.
(f) The commission by rule shall prohibit outdoor advertising in a manner consistent with 23 U.S.C. § 131(s) on a State Scenic Byway designated under this section.