Nearly all highway and street construction and improvement projects are designed to conform to agency-adopted geometric design criteria. In some situations, achieving conformance with all design criteria is not practical or reasonable. A "design exception" is the process and associated documentation of creating or perpetuating a geometric feature that does not meet applicable criteria. Because design features that do not meet criteria may affect the safety and operational efficiency of the facility, a decision to depart from criteria should be deliberative, documented, and approved by an authorized official. All state transportation agencies (STAs) prepare design exceptions. However, the volume of design exceptions, project conditions requiring their preparation, technical processes employed, and approval roles vary substantially among states. Although cognizant of the benefits associated with preparing design exceptions, some states are concerned about the level of resources (i.e., agency personnel, funds, and time) used in the process. This report describes the range of design exception practices among STAs and the problems and suggested improvements based on the experience of state agency personnel.