By Lucio                                              S.B. No. 1795
         77R11038 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to highways, transportation, and the operation of the
 1-3     Texas Department of Transportation.
 1-5           SECTION 1. Subchapter D, Chapter 201, Transportation Code, is
 1-6     amended by adding Section 201.2036 to read as follows:
 1-7           Sec. 201.2036.  REVIEW OF INFORMATION SYSTEMS.  (a)  The
 1-8     department shall contract with independent specialists with
 1-9     extensive knowledge of evolving legacy systems for a comprehensive
1-10     review of the department's information systems.
1-11           (b)  The review must include:
1-12                 (1)  identification and solicitation of information
1-13     from major internal and external customer and user groups to
1-14     determine and plan for the department's information system product
1-15     and service needs;
1-16                 (2)  evaluation of the extent to which the department's
1-17     information technology enterprise plans meet those needs;
1-18                 (3)  consideration of the ability of the department's
1-19     information systems division to accomplish the goal, objectives,
1-20     strategies, and actions provided for in the department's strategic
1-21     plan;
1-22                 (4)  evaluation of the relative potential and costs of
1-23     the department's database strategy to meet anticipated user demands
1-24     compared to alternative strategies; and
 2-1                 (5)  determination of the relative advisability and
 2-2     desirability of implementation of agency-wide enterprise resource
 2-3     planning software as an alternative to continuing to maintain and
 2-4     evolve current systems.
 2-5           (c)  The contract must require that a report of the review be
 2-6     submitted to the department before January 1, 2003.
 2-7           (d)  This section expires January 1, 2003.
 2-8           SECTION 2.  Subchapter D, Chapter 201, Transportation Code,
 2-9     is amended by adding Section 201.207 to read as follows:
2-11     (a)  The department shall develop a detailed and comprehensive plan
2-12     to move existing design work from the area offices and consolidate
2-13     the work in the district headquarters, supported by the design
2-14     division in Austin, within existing budget levels.
2-15           (b)  Under the plan, at least 25 percent of design work must
2-16     be moved to the districts within four years of the effective date
2-17     of this section, and 50 percent must be centralized within eight
2-18     years of that date.
2-19           (c)  The transition required by this section shall take place
2-20     within existing department budget resources.
2-21           (d)  The plan must provide that as department employees leave
2-22     or retire, design-related positions are reestablished at district
2-23     headquarters instead of at area offices.
2-24           (e)  The plan may provide for the refurbishing or reuse, if
2-25     possible, of proximate surplus buildings, the relocating of
2-26     employee locations within existing district buildings, and the
2-27     reuse of any surplus regional office space currently being used by
 3-1     vehicle titles and registration regional offices that are located
 3-2     within district offices.
 3-3           (f)  Except for unusual or significantly complex engineering
 3-4     projects, the districts shall provide their own design review.
 3-5           (g)  As part of the plan for centralizing design, the
 3-6     department shall include the reallocation of some engineering
 3-7     positions to the field so as to enhance production and design
 3-8     review in district headquarters.
 3-9           (h)  Department staff resources shall be reallocated to
3-10     create a more aggressive and accountable project development
3-11     process centralized in the districts.  Some engineering positions
3-12     may be transferred to the districts, including positions for
3-13     production or supporting design review activities in the districts.
3-14           (i)  Complex projects shall continue to be reviewed by the
3-15     roadway design and bridge divisions of the department for
3-16     conformity with any changes in standards, specifications, or rules.
3-17     Those divisions shall continue to provide consultants for bridge
3-18     inspection, large bridge design, subsurface utility location, and
3-19     selected laboratory work and work in standards development,
3-20     landscape, enhancements, hydraulics, project services, and pavement
3-21     management.  However, final design authority shall be vested in the
3-22     responsible persons.
3-23           (j)  The plan shall provide for the reassignment of some
3-24     positions in the three field coordination units to the districts
3-25     and for the assignment of registered professional engineer
3-26     expertise in the design division to complex project review and
3-27     support to the districts on design standards and other functions.
 4-1           (k)  The department shall use those districts where
 4-2     centralized design is in place as test cases for implementing the
 4-3     plan.
 4-4           (l)  As part of the plan, the department shall reduce the
 4-5     number of information technology FTEs allocated to districts.
 4-6           (m)  Before December 31 of each even-numbered year, the
 4-7     department shall submit a report to the legislature on the
 4-8     department's compliance with this section during the preceding two
 4-9     years.
4-10           (n)  This section expires December 21, 2010.
4-11           SECTION 3.  Subchapter D, Chapter 201, Transportation Code,
4-12     is amended by adding Section 201.209 to read as follows:
4-13           Sec. 201.209.  ASSET MANAGEMENT. (a)  The department shall
4-14     implement a comprehensive asset management system for owned and
4-15     leased assets, excluding rights-of-way.  The system shall include:
4-16                 (1)  an annual statewide asset review;
4-17                 (2)  creation of standards for classifying assets;
4-18                 (3)  monitoring of asset transactions and the
4-19     development of timetables for transactions;
4-20                 (4)  use of the department's leased facilities
4-21     database, if feasible;
4-22                 (5)  incorporation of:
4-23                       (A)  previous department asset assessments; and
4-24                       (B)  information from the General Land Office's
4-25     evaluation of department real property; and
4-26                 (6)  integration with department district information
4-27     systems.
 5-1           (b)  The department shall create a statewide facilities
 5-2     master plan for owned and leased real property, including
 5-3     department facilities.  The plan shall:
 5-4                 (1)  be updated every biennium;
 5-5                 (2)  distinguish between simple and complex assets;
 5-6                 (3)  include the development of timetables for asset
 5-7     transactions; and
 5-8                 (4)  implement the recommendations from the General
 5-9     Land Office's evaluation of department real property by the end of
5-10     fiscal year 2006, not including recommendations relating to the
5-11     Sugarland Prison Farm, the Leander Rehabilitation Center, and the
5-12     department district's headquarters in San Antonio.
5-13           (c)  The department shall develop and publish guidelines for
5-14     barter transactions involving department facilities.
5-15           (d)  The department shall hire qualified specialists and
5-16     analysts as necessary to implement this section.
5-17           SECTION 4.  Subchapter F, Chapter 201, Transportation Code,
5-18     is amended by adding Section 201.407 to read as follows:
5-19           Sec. 201.407.  ALLOCATION OF EMPLOYEES. (a)  The department
5-20     shall examine the department's core business and administrative
5-21     units and develop a plan to streamline the department's operation
5-22     by:
5-23                 (1)  transferring employees in engineering, technician,
5-24     and engineering assistant positions from the statewide headquarters
5-25     office to district offices;
5-26                 (2)  transferring employees in support positions from
5-27     the division offices to the state headquarters office; and
 6-1                 (3)  increasing the department's staff-to-manager
 6-2     ratio.
 6-3           (b)  In conducting the examination under Subsection (a), the
 6-4     department shall focus primarily on the following units:
 6-5                 (1)  bridge and roadway design;
 6-6                 (2)  construction;
 6-7                 (3)  environmental affairs;
 6-8                 (4)  maintenance; and
 6-9                 (5)  transportation planning and programming.
6-10           (c)  The department shall present the plan required by this
6-11     section to the 78th Legislature and shall begin the transfer of
6-12     personnel as required by this section not later than August 31,
6-13     2003.  This section expires September 1, 2003.
6-14           SECTION 5.  Subchapter F, Chapter 201, Transportation Code,
6-15     is amended by adding Section 201.408 to read as follows:
6-16           Sec. 201.408.  LIMITATION ON CERTAIN EMPLOYEES.  The
6-17     department may not employ more than one employee who performs
6-18     duties relating to human resources per 100 department employees.
6-19           SECTION 6.  (a)  Section 201.501, Transportation Code, is
6-20     amended to read as follows:
6-21           Sec. 201.501.  RECORDING AND STORAGE [REPRODUCTION] OF
6-22     RECORDS. (a)  The department shall develop an imaging system to
6-23     record and store [may photograph, microphotograph, or film] any
6-24     record that pertains to department operations.
6-25           (b)  The department shall record and store [may create]
6-26     original records in an electronic form [micrographic form on media,
6-27     such as computer output microfilm].
 7-1           (c)  The department shall [provide an adequate number of
 7-2     microfilm readers and printers to] allow the public convenient and
 7-3     inexpensive access to records created under Subsection (a).  The
 7-4     department shall index the records alphabetically, by number, by
 7-5     subject matter, or by other appropriate references and shall
 7-6     provide the index to the public to promote convenient access.
 7-7           (d)  An image [A photograph, microphotograph, or film] of a
 7-8     record reproduced under Subsection (a) is equivalent to the
 7-9     original record for all purposes, including introduction as
7-10     evidence in all courts and administrative agency proceedings. A
7-11     certified or authenticated copy of such an image [a photograph,
7-12     microphotograph, or film] is admissible as evidence equally with
7-13     the original image [photograph, microphotograph, or film].
7-14           (e)  The director or an authorized representative may certify
7-15     the authenticity of an image [a photograph, microphotograph, or
7-16     film] of a record reproduced under this section and shall charge a
7-17     fee for access to the image [the certified photograph,
7-18     microphotograph, or film] as provided by law.
7-19           (f)  Certified records shall be furnished to any person who
7-20     is authorized by law to receive them.
7-21           (b)  As the Texas Department of Transportation implements a
7-22     record imaging system in accordance with Section 201.501,
7-23     Transportation Code, as amended by this section, the department
7-24     shall phase out its microform library of records. Not later than
7-25     January 1, 2002, the department must have fully implemented a
7-26     record imaging and storage system in accordance with Section
7-27     201.501, Transportation Code, as amended by this section.
 8-1           SECTION 7.  Subchapter H, Chapter 201, Transportation Code,
 8-2     is amended by adding Section 201.614 to read as follows:
 8-3           Sec. 201.614.  CONSULTANT SELECTION PROCESS. The department
 8-4     shall work with the consulting engineering design community to
 8-5     improve its consultant selection process and with representatives
 8-6     of other states to find ways to reduce administrative burdens on
 8-7     the department and consulting firms.
 8-8           SECTION 8.  Subchapter H, Chapter 201, Transportation Code,
 8-9     is amended by adding Sections 201.615 and 201.616 to read as
8-10     follows:
8-12     MAINTENANCE. The department shall increase the number of highway
8-13     maintenance projects that are open to private competition and shall
8-14     contract with private businesses to perform highway maintenance if
8-15     a private business is capable of performing better maintenance than
8-16     the department is capable of performing at a lower cost than the
8-17     department's cost for the same maintenance.
8-18           Sec. 201.616.  HIGHWAY MAINTENANCE PILOT PROJECT. (a) The
8-19     department shall create a pilot project to outsource highway
8-20     maintenance to private businesses. The project shall include all
8-21     aspects of highway maintenance, including capital work and bridge
8-22     maintenance, and shall focus on costs over the highway's life cycle
8-23     and encourage vendor innovation. The term of the project must be of
8-24     adequate duration and the highway segment of sufficient size to
8-25     allow the department to determine the effectiveness of the project.
8-26           (b)  A project under this section may be a new project or a
8-27     renegotiation of an existing project.
 9-1           (c)  This section expires December 31, 2003.
 9-2           SECTION 9.  Subchapter I, Chapter 201, Transportation Code,
 9-3     is amended by adding Section 201.7045 to read as follows:
 9-5     AND MOTOR VEHICLES.  In connection with the repair and maintenance
 9-6     of highway equipment and motor vehicles used by the department, the
 9-7     department shall:
 9-8                 (1)  hold district engineers accountable for compliance
 9-9     with equipment preventative maintenance schedules;
9-10                 (2)  improve maintenance practices so as to reduce
9-11     downtime and total equipment requirements and to improve equipment
9-12     reliability and salvage value;
9-13                 (3)  require that, whenever practicable, preventative
9-14     maintenance be performed on equipment and vehicles when they are
9-15     not being used for operations;
9-16                 (4)  recalculate district shop and labor rate
9-17     calculations to reflect "best practice" standards; and
9-18                 (5)  use outside contractors to perform after-hours
9-19     maintenance whenever the department has evaluated the
9-20     cost-effectiveness of after-hours maintenance and determined that
9-21     performing after-hours maintenance is the most efficient option.
9-22           SECTION 10.  Subchapter I, Chapter 201, Transportation Code,
9-23     is amended by adding Section 201.708 to read as follows:
9-24           Sec. 201.708.  PURCHASING METHOD.  In purchasing goods and
9-25     services the department may use, but is not limited to, the reverse
9-26     auction procedure.
9-27           SECTION 11.  Subchapter I, Chapter 201, Transportation Code,
 10-1    is amended by adding Sections 201.709-201.712 to read as follows:
 10-2          Sec. 201.709.  JUST-IN-TIME INVENTORY PILOT PROGRAM.  (a)
 10-3    Before January 1, 2002, the General Services Commission and the
 10-4    department shall implement a "just-in-time" inventory pilot program
 10-5    for the purchase of office and janitorial supplies for the
 10-6    department in small quantities with frequent deliveries.
 10-7          (b)  The General Services Commission and the department shall
 10-8    determine which office supplies and janitorial items are to be
 10-9    included in the pilot program.
10-10          (c)  To the extent necessary to implement the inventory pilot
10-11    program, the department or the General Services Commission, as
10-12    applicable, may modify the terms of contracts offered to vendors as
10-13    part of the pilot program to ensure that items are delivered to the
10-14    department within 24 to 48 hours from the time the department
10-15    orders those items.
10-16          (d)  To the extent practicable, items to be purchased under
10-17    the pilot program should not be inventoried at a regional supply
10-18    center or district warehouse of the department but should be
10-19    delivered directly to the location where they are to be used.
10-20          (e)  The General Services Commission and the department shall
10-21    use as the model for the pilot program under this section the
10-22    program for "just-in-time" inventory approaches for the purchase of
10-23    office supplies and the program for the purchase of office or
10-24    janitorial supplies adopted by other states with populations that
10-25    exceed the population of this state.
10-26          (f)  Under the pilot program developed by the General
10-27    Services Commission and the department, the department should offer
 11-1    one contract for office supplies and a separate contract for
 11-2    janitorial items.  A contract offered under the pilot program must:
 11-3                (1)  require service guarantees similar to those
 11-4    required by the programs in the other states; and
 11-5                (2)  allow orders to be placed by telephone, facsimile,
 11-6    mail, or the Internet, with the Internet to be used as the primary
 11-7    communication mode.
 11-8          (g)  This section expires December 31, 2003.
 11-9          Sec. 201.710.  SUPPLY CHAIN MANAGEMENT GROUP.  (a)  The
11-10    department shall create a supply chain management group to lead the
11-11    application of "best practices" in logistics and materials
11-12    management throughout the department.  The group shall be placed
11-13    within the purchasing section of the department's general services
11-14    division at a level that supports organizational visibility.
11-15          (b)  The supply chain management group may not be composed of
11-16    more than five employees located at the department's Austin
11-17    headquarters. At least two members of the group should have
11-18    private-sector experience in supply chain management and possess
11-19    professional certification in that area.  The remaining group
11-20    members should be recruited from within the department and have
11-21    demonstrated innovative work in purchasing or warehousing.
11-22          (c)  As its initial task, the supply chain management group
11-23    shall review all existing reports, including the June 1997 KPMG
11-24    Peat Marwick report and the November 1998 report by the state
11-25    auditor, identify viable recommendations, develop implementation
11-26    strategies, and seek approval from executive management to
11-27    implement those recommendations.
 12-1          (d)  After the supply chain management group completes its
 12-2    task under Subsection (c), the group shall travel to the department
 12-3    districts and divisions and facilitate the establishment of
 12-4    permanent supply chain committees, composed of seven to nine
 12-5    members from within the department having staggered terms to ensure
 12-6    continuity.  Purchasing, warehousing, and district or division
 12-7    management personnel shall select representatives from end user
 12-8    groups to fill the remaining positions on the committee.
 12-9          (e)  The supply chain management group shall focus its
12-10    efforts on conducting "yellow pages tests" to determine whether the
12-11    department should do particular jobs if there are businesses that
12-12    advertise in the telephone directory yellow pages that can do those
12-13    jobs better and at a lower cost.  The group should first review
12-14    warehousing operations and then review other areas of supply chain
12-15    management.
12-16          Sec. 201.711.  SUPPLY CHAIN MANAGEMENT TRAINING.  (a)  The
12-17    department shall collaborate with private-sector logistics
12-18    organizations to provide supply chain management training for the
12-19    department's purchasing and warehouse managers.
12-20          (b)  The supply chain management group established under
12-21    Section 201.710 may assist in providing training under Subsection
12-22    (a).  In addition, and so as to complement the efforts of the
12-23    supply chain management group and to integrate supply chain
12-24    management principles throughout the department's divisions and
12-25    districts, the department shall encourage department purchasing and
12-26    warehouse managers to pursue additional training and certification.
12-27          Sec. 201.712.  EVALUATION OF WAREHOUSE SPACE.  (a)  The
 13-1    department shall evaluate the department's warehouse space and
 13-2    determine how to maximize the use of that space.
 13-3          (b)  If the implementation of Sections 201.709-201.711
 13-4    results in the identification or creation of warehouse space that
 13-5    is not being used by the department, and depending on the amount of
 13-6    that unused space, the department shall consider leasing the unused
 13-7    space to other entities or converting the space to other uses.
 13-8          SECTION 12. Subchapter I, Chapter 201, Transportation Code,
 13-9    is amended by adding Section 201.713 to read as follows:
13-11    CRIMINAL JUSTICE. The department shall renegotiate a contract for
13-12    signs with the Texas Department of Criminal Justice as necessary to
13-13    reduce:
13-14                (1)  the sign inventory of the department; and
13-15                (2)  the number of days allowed for the Texas
13-16    Department of Criminal Justice to deliver signs.
13-17          SECTION 13. Subchapter J, Chapter 201, Transportation Code,
13-18    is amended by adding Section 201.8015 to read as follows:
13-20    (a)  The department shall centralize consumer and technical
13-21    assistance in its help desk. The department shall include in the
13-22    duties of the help desk answering questions from the public and
13-23    counties about registration and titling, and shall direct a
13-24    majority of those calls to the help desk.
13-25          (b)  The department shall reallocate employees between
13-26    regional offices and the help desk as necessary to carry out
13-27    Subsection (a).
 14-1          SECTION 14. Section 202.055, Transportation Code, is amended
 14-2    by adding Subsection (e) to read as follows:
 14-3          (e)  The department shall:
 14-4                (1)  seek information from potential lessees of rest
 14-5    areas to determine interest in leasing rest areas and ways that
 14-6    rest areas could be used to benefit the public and reduce state
 14-7    expenses; and
 14-8                (2)  consider, in determining proposed uses of a rest
 14-9    area, the opinions of government officials serving the area in
14-10    which the rest area is located and of businesses and residents in
14-11    that area.
14-12          SECTION 15. (a)  Subchapter A, Chapter 223, Transportation
14-13    Code, is amended by adding Section 223.014 to read as follows:
14-14          Sec. 223.014.  PREQUALIFICATION-BASED BIDDING. (a)  The
14-15    department shall establish a formal process to establish strict
14-16    initial prequalification criteria and provide for ongoing follow-up
14-17    evaluations to assess the quality of work performed by bidders.
14-18    The process must be simple and straightforward so as to minimize
14-19    the administrative burden of the department and contractors.
14-20          (b)  The department shall evaluate each project of the
14-21    department after completion and compile a performance index for
14-22    each contractor.  The performance index may be used to increase or
14-23    decrease the amount of work a contractor may be given on the basis
14-24    of the prequalification limit.  A higher performance index shall
14-25    allow bidding on larger jobs.  To reduce concerns of the
14-26    contractors, information collected under this subsection may not be
14-27    used to adjust bid prices.
 15-1          (c)  The department shall tier the qualifications so that
 15-2    specialized expertise is necessary only if that element is included
 15-3    in the particular bid under consideration.
 15-4          (b)  Subchapter B, Chapter 223, Transportation Code, is
 15-5    amended by adding Section 223.049 to read as follows:
 15-6          Sec. 223.049.  USE OF WARRANTIES. (a)  The department shall
 15-7    increase its use of warranties.
 15-8          (b)  The department shall begin implementing warranties in a
 15-9    sample of new construction contracts with appropriate associated
15-10    surety provisions.  The use of warranties may be extended as the
15-11    department and contractors and insurers develop experience and
15-12    expertise.  In implementing warranties, the department shall
15-13    develop strict prequalification guidelines to ensure that this
15-14    state receives the maximum benefit.
15-15          (c)  The department shall determine warranty length based on
15-16    its experience, construction practices, and the project involved.
15-17    Life cycle cost analysis shall be used to determine when to use
15-18    warranties.  Appropriate quality control processes must remain in
15-19    place for the projects.
15-20          (d)  The department shall conduct analyses of warranties in
15-21    high-volume restricted access road projects, such as interstate
15-22    highways, toll roads, and bridges. The department shall also
15-23    analyze warranties for specific elements of larger projects, such
15-24    as asphalt-concrete pavement, bridge decks, bridge painting, and
15-25    bridge expansion dams.
15-26          (e)  For a contract that combines both the design and
15-27    construction elements, including an exclusive developer agreement,
 16-1    the department must include as part of the bidding process an
 16-2    option for an extended warranty for items such as pavement so that
 16-3    life cycle cost analysis can determine cost-effectiveness.
 16-4          SECTION 16. Subchapter A, Chapter 502, Transportation Code,
 16-5    is amended by adding Section 502.010 to read as follows:
 16-6          Sec. 502.010.  INTERNET REGISTRATION SYSTEM. The department
 16-7    shall expand the department's Internet registration system to allow
 16-8    for:
 16-9                (1)  interconnection with the automated registration
16-10    and title system;
16-11                (2)  vehicle fleet registration; and
16-12                (3)  registration of vehicles under the International
16-13    Registration Plan under Section 502.054.
16-14          SECTION 17. Subchapter C, Chapter 502, Transportation Code,
16-15    is amended by adding Section 502.115 to read as follows:
16-16          Sec. 502.115.  COUNTY ONE-STOP SHOPS. (a)  The department
16-17    shall create county one-stop shops for vehicle titling and
16-18    registration so as to improve customer service and refocus the
16-19    department's regional offices to support county one-stop shops and
16-20    to serve apportioned vehicle owners.
16-21          (b)  As county assessor-collector's offices begin to perform
16-22    vehicle registration and titling transactions:
16-23                (1)  the department's regional offices shall cease to
16-24    provide services that are being  performed by the counties; and
16-25                (2)  the department shall delegate the entire refund
16-26    process to counties.
16-27          (c)  In addition, each county shall be allowed to choose
 17-1    whether the county will register vehicles under the international
 17-2    registration plan.  The department's regional offices shall
 17-3    continue to perform registrations under the plan only for counties
 17-4    in their region that chose not to register those vehicles.
 17-5          (d)  The department's regional offices shall also reduce the
 17-6    number of transactions they perform on a routine or emergency basis
 17-7    if the Austin headquarters generally performs or could perform
 17-8    these functions.
 17-9          (e)  After the changes required by Subsections (a)-(d) are
17-10    implemented, regional office employees who are not currently
17-11    located on the campus of a district office shall be housed on a
17-12    district or area campus.
17-13          (f)  The department shall fully implement this section before
17-14    August 31, 2003.  This section expires September 1, 2003.
17-15          SECTION 18. This Act takes effect September 1, 2001.