81S10001 JD/ACP/JTS/JAM/SLB-D

By: Hegar S.B. No. 14

A BILL TO BE ENTITLED

AN ACT

relating to the continuation of the Texas Department of Transportation and the functions of that department and of the Texas Department of Motor Vehicles; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. GENERAL TRANSPORTATION COMMISSION AND TRANSPORTATION

DEPARTMENT PROVISIONS

SECTION 1.01. Sections 201.051(f), (g), and (j), Transportation Code, are amended to read as follows:

(f) An officer, employee, or paid consultant of a Texas trade association in the field of road construction or maintenance, aviation, or outdoor advertising is not eligible for appointment as [or a Texas trade association of automobile dealers may not be] a member of the commission.

(g) The spouse of an officer, manager, or paid consultant of a Texas trade association in the field of road construction or maintenance, aviation, or outdoor advertising is not eligible for appointment as [or a Texas association of automobile dealers may not be] a member of the commission.

(j) In this section, "Texas trade association" means a [nonprofit,] cooperative[,] and voluntarily joined statewide association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

SECTION 1.02. (a) Section 201.052, Transportation Code, is amended to read as follows:

Sec. 201.052. TERMS. Members of the commission serve two-year [staggered six-year] terms[, with the terms of either one or two members] expiring February 1 of each odd-numbered year.

(b) The terms of the members of the Texas Transportation Commission serving on January 31, 2010, expire February 1, 2011.

(c) Not later than January 31, 2011, the governor shall appoint the members of the Texas Transportation Commission in accordance with Section 201.052, Transportation Code, as amended by this section, to serve terms beginning February 1, 2011.

SECTION 1.03. Section 201.054, Transportation Code, is amended to read as follows:

Sec. 201.054. COMMISSION MEETINGS. (a) The commission shall hold regular meetings at least once a month and special meetings at the call of the chair. Commissioners shall attend the meetings of the commission. The chair shall oversee the preparation of an agenda for each meeting and ensure that a copy is provided to each commissioner at least seven days before the meeting.

(b) The commission shall make a sound and video recording of each regular and called meeting of the commission and of any workshop conducted by the commission. Not later than 24 hours after a meeting or workshop of the commission is adjourned, the department shall post the sound and video recording of the meeting or workshop on the department's Internet website.

SECTION 1.04. Subchapter C, Chapter 201, Transportation Code, is amended by adding Sections 201.118 and 201.119 to read as follows:

Sec. 201.118. TECHNOLOGICAL SOLUTIONS. The commission shall implement a policy requiring the department to use appropriate technological solutions to improve the department's ability to perform its functions. The policy must ensure that the public is able to interact with the department on the Internet.

Sec. 201.119. NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE RESOLUTION PROCEDURES. (a) The commission shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of department rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the department's jurisdiction.

(b) The department's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The commission shall designate a trained person to:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures, as implemented by the department.

SECTION 1.05. Section 201.202, Transportation Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a) The commission shall organize the department into divisions to accomplish the department's functions and the duties assigned to it, including divisions for:

(1) aviation;

(2) highways and roads; [and]

(3) public transportation; and

(4) rail transportation.

(c) A person designated by the commission as the department's chief financial officer must report directly to the director.

SECTION 1.06. Section 201.204, Transportation Code, is amended to read as follows:

Sec. 201.204. SUNSET PROVISION. The Texas Department of Transportation is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished September 1, 2013 [2009].

SECTION 1.07. Subchapter D, Chapter 201, Transportation Code, is amended by adding Sections 201.210, 201.211, 201.212, and 201.213 to read as follows:

Sec. 201.210. COMPLIANCE CERTIFICATION. (a) Not later than September 1 of each year, the director and the department's chief financial officer shall each certify in writing that the director or the officer, as applicable:

(1) is responsible for establishing and maintaining the department's internal controls;

(2) has evaluated the effectiveness of the department's internal controls;

(3) has presented conclusions about the effectiveness of the department's internal controls and applicable reporting requirements; and

(4) has effectively complied with all applicable legislative mandates.

(b) The director and the department's chief financial officer shall submit the certifications required by Subsection (a) to the governor, the lieutenant governor, the speaker of the house of representatives, the chair of the standing committee of each house of the legislature with primary jurisdiction over transportation matters, and the Transportation Legislative Oversight Committee created under Section 201.625.

(c) The Transportation Legislative Oversight Committee shall recommend to the 82nd Legislature appropriate penalties for failure to submit the certifications required by Subsection (a).

Sec. 201.211. ETHICS AFFIRMATION AND HOTLINE. (a) Each department employee shall annually affirm the employee's commitment to adhere to the ethics policy adopted under Section 572.051(c), Government Code.

(b) The department shall establish and operate a telephone line to be known as the Ethics Hotline that enables a person to call the hotline number, anonymously or not anonymously, to report an alleged violation of the ethics policy adopted under Section 572.051(c), Government Code.

Sec. 201.212. LEGISLATIVE APPROPRIATIONS REQUEST. Department staff shall deliver the department's legislative appropriations request to the commission in an open meeting not later than the 30th day before the commission adopts the legislative appropriations request for submission to the Legislative Budget Board.

Sec. 201.213. LEGISLATIVE LOBBYING. (a) In addition to Section 556.006, Government Code, a member of the commission, the director, or a department employee may not use money under the department's control or state resources to engage in an activity to influence the passage or defeat of legislation, except as provided by Subsection (c).

(b) Violation of Subsection (a) is grounds for dismissal of an employee who directs or carries out the violation.

(c) This section does not prohibit a member of the commission, the director, or a department employee from using state resources to:

(1) provide public information or information responsive to a request;

(2) communicate with officers and employees of the federal government in pursuit of federal appropriations; or

(3) influence the passage or defeat of federal legislation or regulation on an issue that the commission by order specifies and in accordance with any directions given in such an order.

SECTION 1.08. Section 201.404(b), Transportation Code, is amended to read as follows:

(b) The director or the director's designee shall develop a system of annual performance evaluations that are based on documented employee performance. All merit pay for department employees must be based on the system established under this subsection. If an annual performance evaluation indicates that an employee's performance is unsatisfactory, the director or the person designated by the director shall consider whether the employee should be terminated. The annual performance evaluations developed under this subsection must include the evaluation of an employee's:

(1) professionalism;

(2) diligence; and

(3) responsiveness to directives and requests from the commission and the legislature.

SECTION 1.09. Subchapter H, Chapter 201, Transportation Code, is amended by adding Section 201.625 to read as follows:

Sec. 201.625. TRANSPORTATION LEGISLATIVE OVERSIGHT COMMITTEE. (a) In this section, "committee" means the Transportation Legislative Oversight Committee.

(b) The committee is composed of the following members:

(1) the chair of the Senate Committee on Transportation and Homeland Security and two members of that committee appointed by the lieutenant governor;

(2) the chair of the House Committee on Transportation and two members of that committee appointed by the speaker of the house of representatives;

(3) the chair of the Senate Committee on Finance; and

(4) the chair of the House Committee on Appropriations.

(c) The chair of the Senate Committee on Transportation and Homeland Security and the chair of the House Committee on Transportation serve as the presiding officer of the committee on an alternating basis, with the chair of the Senate Committee on Transportation and Homeland Security serving as the first chair of the committee. The presiding officer of the committee serves a two-year term that expires February 1 of each odd-numbered year.

(d) The committee has all other powers and duties provided to a special committee by:

(1) Subchapter B, Chapter 301, Government Code;

(2) the rules of the senate and the house of representatives; and

(3) policies of the senate and house committees on administration.

(e) The committee shall meet at least quarterly and at the call of the presiding officer.

(f) The committee shall monitor the following:

(1) implementation of the changes in law made as a result of the sunset review process;

(2) the progress made in transference of powers, duties, and property from the Texas Department of Transportation to the Texas Department of Motor Vehicles;

(3) any proposed changes in the organization or structure of the department;

(4) significant transportation policy initiatives at both the state and federal levels;

(5) major projects of the department;

(6) the financial issues facing the department, including the amounts and usage of dedicated and non-dedicated state highway funds, the impacts of various bond programs, the short-term and long-term cash forecast of the department, possible revenue sources for the rail relocation and improvement fund, and additional revenue sources for the Texas Mobility Fund; and

(7) reports on any subject requested by the committee or determined by the department to be beneficial to the committee.

(g) The committee shall require the department to provide reports to the committee as necessary to effectively perform the committee's duties under Subsection (f).

(h) When the department files a quarterly financial statement required by Section 201.107(a) with the governor, the department shall provide a copy of that statement to the committee.

(i) Notwithstanding any other provision of this chapter, the committee may not recommend specific projects or recommend funding for specific projects at the department.

(j) The department shall enter into an interagency agreement with the legislature, a chamber of the legislature, or a legislative agency to provide funding to support the operation of the committee from available amounts appropriated to the department. The amount provided by the department for a state fiscal biennium may not exceed $1 million.

(k) The department shall consult with the committee on any outside management and organizational review of the department.

(l) This section expires August 31, 2013.

SECTION 1.10. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.004 to read as follows:

Sec. 222.004. AUTHORIZATION TO PROVIDE ASSISTANCE TO EXPEDITE ENVIRONMENTAL REVIEW. (a) The department, a county, a regional tollway authority operating under Chapter 366, or a regional mobility authority operating under Chapter 370 may enter into an agreement to provide funds to a state or federal agency to expedite the agency's performance of its duties related to the environmental review process for transportation projects:

(1) of the department;

(2) listed in a metropolitan planning organization's long-range transportation plan under 23 U.S.C. Section 134; or

(3) of a county, a regional tollway authority operating under Chapter 366, or a regional mobility authority operating under Chapter 370.

(b) Except as provided by Subsection (c), an agreement entered into under this section:

(1) may specify transportation projects the applicable entity considers to be priorities for review; and

(2) must require the agency receiving money to complete the environmental review in less time than is customary for the completion of environmental review by that agency.

(c) The department may enter into a separate agreement for a transportation project that the department determines has regional importance.

(d) An agreement entered into under this section does not diminish or modify the rights of the public regarding review and comment on transportation projects.

(e) An entity entering into an agreement under this section shall make the agreement available on the entity's Internet website.

SECTION 1.11. (a) Section 228.004, Transportation Code, is amended to read as follows:

Sec. 228.004. [PROMOTION OF] TOLL PROJECT INFORMATION. (a) The department may, notwithstanding Chapter 2113, Government Code, engage in marketing, advertising, and other activities to provide information relating to the status of pending or ongoing [promote the development and use of] toll projects, including information concerning the methods of paying and collecting tolls, and may enter into contracts or agreements necessary to procure marketing, advertising, or informational [other promotional] services from outside service providers.

(b) This section does not authorize the department to engage in marketing, advertising, or other activities for the purpose of influencing public opinion about the use of toll roads or the use of tolls as a financial mechanism.

(b) The change in law made by Subsection (a) of this section applies only to a contract or agreement entered into or renewed under Section 228.004, Transportation Code, on or after the effective date of this Act. A contract or agreement entered into or renewed under Section 228.004, Transportation Code, before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose.

ARTICLE 2. TRANSPORTATION PLANNING

SECTION 2.01. Section 201.001(a), Transportation Code, is amended by adding Subdivision (4) to read as follows:

(4) "Metropolitan planning organization" has the meaning assigned by Section 472.031.

SECTION 2.02. Section 201.601, Transportation Code, is amended to read as follows:

Sec. 201.601. STATEWIDE TRANSPORTATION PLAN. (a) The department shall develop a statewide transportation plan covering a period of not less than 25 years that contains all modes of transportation, including:

(1) highways and turnpikes;

(2) aviation;

(3) mass transportation;

(4) railroads and high-speed railroads; and

(5) water traffic.

(a-1) The plan must:

(1) contain specific, long-term transportation goals for the state and measurable targets for each goal, including reducing congestion throughout the state;

(2) identify priority corridors, projects, or areas of the state that are of particular concern to the department in meeting the goals established under Subdivision (1); and

(3) contain a participation plan for obtaining input on the goals and priorities identified under this subsection from:

(A) other state agencies;

(B) political subdivisions;

(C) planning organizations as defined in Section 201.981(2); and

(D) members of the general public.

(b) [In developing the plan, the department shall seek opinions and assistance from other state agencies and political subdivisions that have responsibility for the modes of transportation listed by Subsection (a).] As appropriate, the department and one or more of the entities listed in Subsection (a-1)(3) [such an agency or political subdivision] shall enter into a memorandum of understanding relating to the planning of transportation services.

(c) The plan must include a component that is not financially constrained and identifies transportation improvements designed to relieve congestion. In developing this component of the plan, the department shall seek opinions and assistance from officials who have local responsibility for modes of transportation listed in Subsection (a).

(d) If there is a conflict between obligations and requirements imposed in federal law governing the transportation planning, project development, and programming process for the department and planning organizations as defined in Section 201.981(2), and those imposed in this title, federal law controls and the commission may take any action that is necessary in its reasonable judgment to comply with any federal law to enable this state to receive federal aid funds.

(e) The department shall update the plan every five years or more frequently as necessary. [The plan shall include a component, published annually, that describes the evaluation of transportation improvements based on performance measures, such as indices measuring delay reductions or travel time improvements. The department shall consider the performance measures in selecting transportation improvements.]

SECTION 2.03. Subchapter H, Chapter 201, Transportation Code, is amended by adding Sections 201.6014, 201.6015, 201.622, 201.623, and 201.624 to read as follows:

Sec. 201.6014. INTEGRATION OF PLANS AND POLICY EFFORTS. In developing each of its transportation plans and policy efforts, the department must clearly reference the plan developed under Section 201.601 and specify how the plan or policy effort supports or otherwise relates to the specific goals contained in that plan.

Sec. 201.6015. DELEGATION OF DUTIES OR POWERS TO METROPOLITAN PLANNING ORGANIZATION. A metropolitan planning organization may agree to accept additional responsibilities delegated by the commission concerning transportation planning and project selection.

Sec. 201.622. METROPOLITAN TRANSPORTATION PLAN. (a) A metropolitan planning organization shall prepare and periodically update a long-range transportation plan for its service area as required by federal law. The long-range transportation plan must:

(1) address at least a 20-year period;

(2) include both long-range and short-range strategies; and

(3) comply with all other state and federal requirements.

(b) The first 10 years of the long-range plan must be identical to the plan developed under Section 201.985.

(c) Before approving a long-range transportation plan, a metropolitan planning organization shall provide to residents in its boundaries, affected public agencies, and other interested parties a reasonable opportunity to comment on the long-range transportation plan.

(d) A metropolitan planning organization shall make each of its long-range transportation plans readily available for public review and shall deliver each plan to the commission at the times and in the manner and format established by the commission. The format of the plan must be in plain English and easily reviewable and understandable. The metropolitan planning organization shall update the plan every year or more frequently as necessary.

Sec. 201.623. COOPERATION WITH METROPOLITAN PLANNING ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The department and metropolitan planning organizations shall cooperate to develop mutually acceptable assumptions for the purposes of long-range federal and state funding forecasts that are consistent with the criteria established by the commission under Section 201.994 and use those criteria to guide long-range planning.

Sec. 201.624. RECOMMENDATIONS FROM RURAL PLANNING ORGANIZATION. A rural planning organization may make recommendations to the commission concerning the selection of transportation projects, systems, or programs to be undertaken in the boundaries of the rural planning organization.

SECTION 2.04. (a) Subchapter J, Chapter 201, Transportation Code, is amended by adding Sections 201.8005, 201.807, 201.808, 201.809, 201.810, and 201.811 to read as follows:

Sec. 201.8005. DEFINITION. In this subchapter, "transportation project" has the meaning assigned by Section 201.981.

Sec. 201.807. TRANSPORTATION PROJECT AND PERFORMANCE REPORTING SYSTEM. (a) The department shall establish a project and performance reporting system that makes available in a central location on the department's Internet website information regarding all of the department's transportation projects contained in the unified transportation program required by Section 201.983 or under construction. The information must be easily accessible, understandable, and searchable. The project and performance reporting system must contain:

(1) information about each of the department's transportation projects included in the unified transportation program, including:

(A) the status of the project;

(B) each source of funding for the project;

(C) benchmarks for evaluating the progress of the project;

(D) timelines for completing the project;

(E) a list of the department employees responsible for the project, including information as to how each person on that list may be contacted; and

(F) the results of the annual review required by Subsection (d);

(2) a representational color-coded map showing the location of the transportation projects and containing the information described by Subdivision (1);

(3) each construction work zone for a transportation project under construction that has a total construction timeline that exceeds six months or the cost of which exceeds $5 million, including information about:

(A) the number of lanes that will remain open during the project's construction phase;

(B) the location and duration of each lane closure; and

(C) the expected traffic delay resulting from each lane closure;

(4) road maintenance transportation projects that are planned or under construction, including the condition of each road before the road maintenance transportation project; and

(5) each fund source for the department's funds and all expenditures made by the department, for each of the department's transportation projects, reported by:

(A) department district;

(B) program funding category as required by Section 201.983(b)(2); and

(C) type of revenue, including revenue from a comprehensive development agreement or a toll project.

(b) In developing the transportation project and performance reporting system, the department shall collaborate with:

(1) the Transportation Legislative Oversight Committee;

(2) local transportation entities as defined by Section 201.981; and

(3) members of the general public.

(c) The department shall make the statistical information provided under this section available on the department's Internet website in more than one downloadable electronic format.

(d) As a component of the transportation project and performance reporting system required by this section, the department shall conduct an annual review of the benchmarks and timelines of each transportation project included in the department's project development program, to determine the completion rates of the projects and whether the projects were completed on time.

(e) The department shall update the information contained in the transportation project and performance reporting system at least quarterly and the representational map at least annually.

Sec. 201.808. TRANSPORTATION PROJECT AND PERFORMANCE REPORTS. (a) The department shall develop a process to identify and distinguish between the transportation projects that are required to maintain the state infrastructure and the transportation projects that would improve the state infrastructure in a manner consistent with the statewide transportation plan required by Section 201.601.

(b) The department shall include in the transportation project and performance reporting system:

(1) a list of the most significant transportation problems in each department district as described by the statewide transportation plan developed under Section 201.601, including the component required by Section 201.601(c);

(2) reports prepared by the department or an institution of higher education that evaluate the effectiveness of the department's expenditures on transportation projects to achieve the transportation goals;

(3) information about the condition of the pavement for each segment of the state highway system, including:

(A) the international roughness index issued by the United States Department of Transportation Federal Highway Administration; and

(B) the percentage of pavement that the department determines to be in good or better condition;

(4) the condition of bridges, including information about:

(A) the number of on-system and off-system bridges that are structurally deficient or functionally obsolete; and

(B) the percentage of bridges that the department determines to be in good or better condition;

(5) information about traffic congestion and traffic delays, including:

(A) the locations of the worst metropolitan traffic delays;

(B) the variable travel time for major freeways and highways in the metropolitan areas of this state; and

(C) the effect of traffic congestion on motor vehicle travel and motor carriers; and

(6) information about the number of traffic accidents, injuries, and fatalities, including the geographic locations in each department district for the highest number of traffic accidents, injuries, or fatalities.

(c) The department shall provide the information made available under Subsection (b) in a format that allows a person to conduct electronic searches for information about a specific county, a highway under the jurisdiction of the department, or a type of road.

(d) Each department district shall enter information into the transportation project and performance reporting system, including information about each district transportation project.

(e) The transportation project and performance reporting system established under this section must include:

(1) information relating to each source of the department's funds, including the identification of revenue from each comprehensive development agreement or toll project; and

(2) information relating to all expenditures of the department by type of expenditure, as described in the comptroller's statewide accounting system, and reported for all applicable organizational groups and categories, including:

(A) the entire department;

(B) each department division;

(C) each department district; and

(D) each program funding category for project expenses.

Sec. 201.809. STATEWIDE TRANSPORTATION REPORT. (a) The department annually shall evaluate and publish a report about the status of each transportation goal for this state. The report must include:

(1) information about the progress of each long-term transportation goal that is identified by the statewide transportation plan;

(2) the status of each project;

(3) a summary of the number of statewide project implementation benchmarks that have been completed; and

(4) information about the accuracy of previous department financial forecasts.

(b) The department shall disaggregate the project information in the report by department district.

(c) The department shall make available a copy of the reports for department districts in a legislative district to each member of the legislature, and at the request of a member, a senior management employee shall meet with the member to explain the report.

(d) The department shall provide a copy of each district report to the political subdivisions located in the department district that is the subject of the report, including:

(1) a municipality;

(2) a county; and

(3) a local transportation entity as defined by Section 201.981.

(e) The department shall provide a copy of the complete report to the lieutenant governor, the speaker of the house of representatives, and the chair of the standing committee of each house of the legislature with primary jurisdiction over transportation issues.

Sec. 201.810. SEPARATE SUBACCOUNT REPORTING. (a) The department shall develop an account information reporting system that makes available on the department's Internet website for viewing and downloading by interested persons the tracking of each separate subaccount in the state highway fund required by law, including Chapter 228. The account information must include:

(1) the source and amount of the deposited funds and the date of deposit;

(2) identification by location and highway designation of the projects or systems to which the funds are allocated; and

(3) the amount, general type or purpose, and date of expenditures from the account.

(b) The department shall update the account information reporting system at least quarterly.

Sec. 201.811. DEPARTMENT INFORMATION CONSOLIDATION. (a) To the extent practicable and to avoid duplication of reporting requirements, the department may combine the reports required under this subchapter with reports required under other provisions of this code.

(b) The department shall develop a central location on the department's Internet website that provides easily accessible and searchable information to the public contained in the reports required under this subchapter and other provisions of this code.

(b) Not later than December 1, 2009, the Texas Department of Transportation shall establish the central location on the department's Internet website required by Section 201.807, Transportation Code, as added by this section.

SECTION 2.05. Chapter 201, Transportation Code, is amended by adding Subchapter P to read as follows:

SUBCHAPTER P. UNIFIED TRANSPORTATION PROGRAM

Sec. 201.981. DEFINITIONS. In this subchapter:

(1) "Local transportation entity" means an entity that participates in the transportation planning process. The term includes:

(A) a metropolitan planning organization;

(B) a rural planning organization;

(C) a regional tollway authority organized under Chapter 366;

(D) a regional transportation authority operating under Chapter 452;

(E) a rural transit district as defined by Section 458.001;

(F) a coordinated county transportation authority operating under Chapter 460;

(G) a regional mobility authority operating under Chapter 370; and

(H) a county, including a county operating under Chapter 284.

(2) "Planning organization" means:

(A) a metropolitan planning organization;

(B) a rural planning organization; or

(C) for an area that is not in the boundaries of a metropolitan planning organization or a rural planning organization, the department district.

(3) "Transportation official" means an official in a state agency or political subdivision who has responsibility for any of the following modes of transportation:

(A) aviation;

(B) high-speed rail;

(C) highways;

(D) toll roads;

(E) mass transportation;

(F) railroads; and

(G) water traffic.

(4) "Transportation project" means the planning, right-of-way acquisition, expansion, improvement, addition, or contract maintenance, other than the routine or contracted routine maintenance, of:

(A) a bridge;

(B) a highway;

(C) a toll road or toll road system;

(D) a railroad;

(E) an enhancement of a roadway that increases the safety of the traveling public;

(F) an air quality improvement initiative; or

(G) a transportation enhancement activity under 23 U.S.C. Section 133.

Sec. 201.982. PURPOSE. It is in the interest of this state to:

(1) encourage and promote the safe and efficient management, operation, and development of surface transportation systems that will serve the mobility needs of people and freight and foster economic growth and development in rural and urbanized areas of this state, while minimizing transportation-related fuel consumption and air pollution through metropolitan, rural, and statewide transportation planning processes identified in this chapter; and

(2) encourage the continued improvement and evolution of the metropolitan, rural, and statewide transportation planning processes by planning organizations and public transit operators as guided by the planning factors identified in state and federal law.

Sec. 201.983. UNIFIED TRANSPORTATION PROGRAM. (a) The department shall develop a unified transportation program that covers a period of 10 years to guide the development of and authorize construction of transportation projects. The program must:

(1) estimate funding levels for each year; and

(2) list all projects and programs that the department intends to develop or begin construction of during the program period.

(b) The commission by rule shall:

(1) specify the criteria for selecting projects to be included in the program as provided in Section 201.994;

(2) define program funding categories, including categories for safety, bridge, maintenance, and mobility; and

(3) define each phase of a major transportation project, including the planning, design, and construction phases.

(c) The department shall publish the entire unified transportation program and summary documents highlighting project benchmarks, priorities, and forecasts in appropriate media and on the department's Internet website.

(d) In developing the rules required by this section, the commission shall cooperate with local transportation entities.

Sec. 201.984. ANNUAL UPDATE TO UNIFIED TRANSPORTATION PROGRAM. (a) The department shall annually update the unified transportation program.

(b) The department shall collaborate with local transportation entities to develop each annual update to the unified transportation program.

Sec. 201.985. PLANNING ORGANIZATION 10-YEAR PLAN. (a) Each planning organization shall develop a 10-year transportation plan that is consistent with the criteria and definitions adopted by the commission under Section 201.983.

(b) The first four years of the plan shall be developed so as to comply with the transportation improvement plan requirements of federal law.

(c) In developing the statewide transportation improvement plan in accordance with federal law, the department shall:

(1) compile the metropolitan planning organizations' project selections; and

(2) collaborate with the rural planning organizations.

(d) The department shall develop the statewide transportation improvement plan in accordance with federal law.

Sec. 201.986. PROJECT PRIORITIZATION BY PLANNING ORGANIZATIONS. (a) Each metropolitan planning organization shall, for the area in its boundaries, develop a prioritized list of transportation projects that is consistent with the criteria established by the commission under Section 201.994. Projects that are not considered by the department and the planning organization to be of an appropriate scale for individual identification in a given program year may be grouped by function, geographic area, or work type.

(b) For an area not located in the boundaries of a planning organization, the applicable department district shall:

(1) develop a prioritized list of transportation projects with input from municipal and county officials and officials of local transportation entities; and

(2) submit the transportation projects to the commission for final approval.

Sec. 201.987. CASH FLOW FORECAST. (a) On September 1 of each odd-numbered year, the department's chief financial officer shall issue a cash flow forecast for each method and category of funding that covers a period of not less than the 10 years following the date the forecast is issued.

(b) The forecast must identify all sources of funding available for transportation projects, including bond proceeds.

(c) The first two years of the forecast must be based on the appropriation of funds in the General Appropriations Act for the department for that biennium.

(d) The department shall update the forecast more frequently as needed if significant changes in the department's funding occur.

Sec. 201.988. ALLOCATION OF ESTIMATED FUNDING. (a) The commission shall use the cash flow forecast under Section 201.987 to allocate funding to the planning organizations in accordance with Section 201.995.

(b) In this subchapter, unless the context clearly indicates otherwise, "funds" or "funding" means the estimates of federal and state money reasonably expected to be available for expenditure on transportation projects during the relevant period.

Sec. 201.989. PROCESS FOR DEVELOPING PLANS AND PROGRAMS. The process for developing the plans and programs under this subchapter must:

(1) provide for consideration of all modes of transportation;

(2) be continuing, cooperative, and comprehensive to the extent appropriate, based on the complexity of the transportation problems to be addressed; and

(3) give consideration to statewide connectivity of transportation services and infrastructure.

Sec. 201.990. PARTICIPATION IN PLAN DEVELOPMENT. (a) In developing a plan under this subchapter, a planning organization shall seek the opinions and assistance of the appropriate transportation officials.

(b) As appropriate, the department and a metropolitan planning organization may enter into a memorandum of understanding relating to the planning of transportation services.

(c) The department shall review the plans of each planning organization to ensure compliance with the requirements of 23 U.S.C. Section 135, and provide assistance to a planning organization to correct deficiencies.

Sec. 201.991. PLANS TO BE FINANCIALLY CONSTRAINED. A plan under this subchapter must be financially constrained and identify transportation projects and projects for any other mode of transportation not included in Section 201.981(4).

Sec. 201.992. PLAN ADJUSTMENTS. The commission shall adopt rules to allow a planning organization to move projects forward or delay projects if there are additional or less funds available than identified in the cash flow forecast under Section 201.987. Adjustments to the plan may not be made more than semiannually, unless there are substantial increases or decreases in available funding.

Sec. 201.993. EVALUATION COMPONENT OF PLAN. A plan under this subchapter must include a component, published annually, that describes the evaluation of transportation improvements based on performance measures, such as indices that measure delay reductions or travel time improvements. The planning organization shall consider the performance measures in selecting transportation improvements.

Sec. 201.994. PROJECT SELECTION. (a) The commission by rule shall establish criteria for selection by the department and each planning organization of projects to be included in the statewide transportation plan. The criteria must be based on the commission's transportation goals for the state and measurable targets for each goal.

(b) The department shall collaborate with planning organizations in the development of the criteria for selection of projects.

(c) The commission shall determine and approve the final selection of projects to be included in the statewide transportation plan.

(d) The commission shall consider the prioritized list of transportation projects developed by metropolitan planning organizations operating in areas that are transportation management areas, as defined by 23 U.S.C. Section 134(k), for projects funded as congestion mitigation and air quality improvement projects, and metropolitan mobility or rehabilitation projects, unless the commission determines that a particular project's inclusion on or omission from the project list conflicts with or is inconsistent with federal law or a rule adopted under Subsection (a).

(e) The statewide transportation program and budget must include:

(1) the official cash flow forecast under Section 201.987; and

(2) each region's estimated allocation of funds.

Sec. 201.995. TRANSPORTATION ALLOCATION FUNDING FORMULA. (a) The commission shall adopt rules that create funding formulas for transportation projects. In developing the formulas, the commission shall consider the input of planning organizations, transportation officials, and county and municipal officials.

(b) The commission shall allocate to metropolitan planning organizations operating in areas that are transportation management areas, as defined by 23 U.S.C. Section 134(k), the following categories of funds:

(1) metropolitan area corridor projects;

(2) metropolitan mobility and rehabilitation projects;

(3) congestion mitigation and air quality improvement projects in non-attainment areas; and

(4) a percentage of transportation enhancements project funding as determined by formula for projects recommended by the metropolitan planning organizations under rules adopted by the commission.

(c) The commission shall allocate to metropolitan planning organizations that are not transportation management areas, as defined by 23 U.S.C. Section 134(k), the following categories of funds:

(1) urban area corridor projects; and

(2) a percentage of transportation enhancements project funding as determined by formula for projects recommended by the metropolitan planning organizations under rules adopted by the commission.

(d) The funds allocated under Subsections (b) and (c) shall be allocated by a formula to each metropolitan planning organization that takes into consideration performance measures and includes at least the following criteria:

(1) lane miles;

(2) level of congestion;

(3) percentage of population below federal poverty level;

(4) census population;

(5) safety;

(6) total vehicle miles traveled; and

(7) truck vehicle miles traveled.

(e) The commission shall provide funding estimates to the planning organizations for the project costs of all transportation projects. The commission shall adopt appropriate formulas for the different types of transportation projects, including funding for statewide connectivity projects. The commission shall adopt rules for all transportation formulas.

Sec. 201.996. LIMITATION ON COMMISSION ALLOCATION OF FUNDS. (a) The commission or the department may not require that a toll project be included in a regional transportation plan as a condition for the allocation of funds for the construction of projects in the region.

(b) The commission or the department may not:

(1) revise the formula as provided in the department's project development program, or its successor document, in a manner that results in a decrease of a department district's allocation because of:

(A) the failure of a region to include toll projects in a regional transportation plan; or

(B) participation by a political subdivision in the funding of a transportation project in the region, including the use of money collected in a transportation reinvestment zone under Section 222.106 or 222.107; or

(2) take any other action that would reduce funding allocated to a department district because of the failure of a region to include toll projects in a regional transportation plan.

Sec. 201.997. ORGANIZATION OF STATEWIDE TRANSPORTATION PROGRAM AND BUDGET. (a) The statewide transportation program and budget shall be organized first by region, then by mode of transportation, followed by the year of the project.

(b) The summary tables of the statewide transportation program and budget shall summarize the statewide project cost by mode and then by year and shall be made available online in accordance with Section 201.807.

Sec. 201.998. USE OF ALLOCATED FUNDS. The funds allocated to a planning organization under Section 201.988 may be used to:

(1) pay project costs, provide toll equity, or make payments under a pass-through toll agreement, for transportation projects selected by the planning organization;

(2) pay debt service; or

(3) fund a planning organization's operations under Section 201.999.

Sec. 201.999. USE OF ALLOCATED FUNDS FOR OPERATING COSTS OF PLANNING ORGANIZATION. (a) A metropolitan planning organization operating in a transportation management area as defined by 23 U.S.C. Section 134(k) may use the allocated funds to pay for the operations costs of the planning organization.

(b) A metropolitan planning organization operating in an area that is not a transportation management area may use the allocated funds to pay for the operations costs of the planning organization.

Sec. 201.1000. SURPLUS REVENUE AND CONTRACT PAYMENTS NOT ALLOCATED BY FORMULA. (a) Revenue from Sections 228.005, 228.0055, and 228.006 shall be allocated in accordance with Subchapter A, Chapter 228.

(b) Funds associated with toll projects under Chapter 228 are not considered revenue allocated by a formula under Section 201.995.

Sec. 201.1001. ENCUMBRANCE OF ALLOCATED FUNDS. (a) The allocation of funds shall be encumbered in an amount equal to the engineer's estimate of the project cost and reduced by the actual project cost at the time payments associated with the project are paid.

(b) If a planning organization elects to use bond proceeds to advance a project, the allocation of funds shall be encumbered by the annual cost of debt service and reduced when debt service payments are paid.

Sec. 201.1002. STATEWIDE CONNECTIVITY PLAN AND PROJECTS. (a) The department shall work with planning organizations to develop a statewide connectivity plan.

(b) The department by rule shall:

(1) establish criteria for designating a project as a statewide connectivity project; and

(2) develop benchmarks for evaluating the progress of a statewide connectivity project and timelines for implementation and construction of a statewide connectivity project.

(c) The department annually shall update the list of projects that are designated as statewide connectivity projects.

(d) The commission shall adopt the statewide connectivity plan.

Sec. 201.1003. DEPARTMENT FOUR-YEAR BUSINESS WORK PLAN. (a) Each department district shall develop a consistently formatted work plan for the following four years that is based on the project development program and contains all projects and project categories that the district intends to implement during that period. Not later than August 31 of each odd-numbered year, the department shall finalize a project plan for the period that begins on September 1 of that year and ends on August 31 of the following odd-numbered year.

(b) The work plan must contain for each project and project category:

(1) a project schedule with funding for each phase of development;

(2) a right-of-way acquisition plan;

(3) a letting plan; and

(4) a summary of the progress on the project and project category.

(c) The department shall use the work plan to:

(1) monitor the performance of the district; and

(2) evaluate the performance of district employees.

(d) The department shall consolidate the districts' work plans into a statewide work plan and publish it in appropriate media and on the department's Internet website.

Sec. 201.1004. PERFORMANCE MEASURES FOR WORK PLAN. (a) The department shall develop a set of performance measures for the plan under Section 201.1003 intended to measure:

(1) the execution of the work program;

(2) the preservation of the system investment;

(3) the addition of new capacity to the system;

(4) safety initiatives; and

(5) use of minority, disadvantaged, and small businesses.

(b) At a minimum, the performance measures adopted under Subsection (a) must include:

(1) the peak hour travel congestion in the eight largest metropolitan areas in contrast with previous state fiscal years;

(2) the percentage of projects for which environmental clearance is obtained on or before the planned implementation timelines;

(3) the percentage of projects for which right-of-way acquisition is completed on or before the planned implementation timelines;

(4) the percentage of parcels acquired through negotiation;

(5) the average time between selection and execution of a contract for engineering services;

(6) the total amount spent for right-of-way as a percentage of the original estimated amount;

(7) the percentage of highway improvement contracts executed on or before the planned implementation timelines for letting;

(8) the percentage of construction contracts executed on or before the planned letting date;

(9) the total amount spent for construction contracts as a percentage of the final design estimated amount;

(10) for all highway improvement contracts completed during the state fiscal year, the percentage completed within 20 percent of the original contract time;

(11) construction contract adjustments as a percentage of original contract price;

(12) for all highway improvement contracts completed during the state fiscal year, the percentage completed within 10 percent of the original contract price;

(13) for all highway improvement contracts completed during the state fiscal year, the percentage of the total contract adjustments as a percentage of the total original contract price;

(14) of the federal funds subject to forfeiture at the end of the state fiscal year, the percentage that was committed by the department;

(15) the amounts of cash receipts and disbursements in contrast with the forecasted amounts;

(16) the amount obligated to be spent in connection with contracts or participation in contracts with minority, disadvantaged, and small business enterprises as a percentage of the amount spent on all contracts;

(17) the percentage of lane miles on the state highway system that have a pavement condition rating of excellent or good;

(18) the number of lane miles on the state highway system that were resurfaced in contrast with the number planned; and

(19) the number of vehicle miles traveled in contrast with previous state fiscal years.

(c) The department shall consult with the Transportation Legislative Oversight Committee in developing the performance measures under Subsection (a). This subsection expires August 31, 2013.

Sec. 201.1005. PERFORMANCE REVIEW. Not later than December 1 of each odd-numbered year, the commission shall review the performance of the department's activities described in Section 201.1003 and make the review available to the public. The review must include a report on the level of achievement of each performance measure listed in Section 201.1004(a), statewide and by department district, and a status report on each major transportation project under development.

SECTION 2.06. (a) The Texas Transportation Commission shall adopt the rules required by this article as soon as practicable but not later than March 1, 2010.

(b) Each planning organization, as defined by Section 201.981, Transportation Code, as added by this article, shall develop its first 10-year transportation plan in accordance with Section 201.985, Transportation Code, as added by this article, not later than March 1, 2011.

(c) The Texas Department of Transportation shall develop the programs and plans required under Subchapter P, Chapter 201, Transportation Code, as added by this article, as soon as practicable but not later than December 1, 2010.

SECTION 2.07. (a) Subchapter D, Chapter 472, Transportation Code, is amended by adding Sections 472.0311 through 472.0313, 472.0316, 472.0332, 472.035 through 472.041, and 472.043 through 472.046 to read as follows:

Sec. 472.0311. PURPOSE. (a) The metropolitan transportation planning process described by this subchapter is intended to:

(1) encourage and promote the safe and efficient management, operation, and development of surface transportation systems to serve the mobility needs of people and freight;

(2) foster economic growth and development in and through urbanized areas of this state; and

(3) minimize transportation-related fuel consumption, air pollution, and greenhouse gas emissions.

(b) To accomplish the objectives under Subsection (a), metropolitan planning organizations shall develop, in cooperation with this state and public transit operators, transportation plans and programs for metropolitan areas in this state.

(c) The plans and programs for each metropolitan area must provide for the development and integrated management and operation of transportation systems and facilities, including pedestrian walkways and bicycle transportation facilities that will function as an intermodal transportation system for the metropolitan area.

(d) The process for developing plans and programs under this subchapter shall provide for consideration of all modes of transportation and be continuing, cooperative, and comprehensive, to the degree appropriate, based on the complexity of the transportation issues to be addressed.

(e) To ensure that the process is integrated with the statewide planning process, metropolitan planning organizations shall develop plans and programs that identify transportation facilities that should function as an integrated metropolitan transportation system and give emphasis to facilities that serve important national, state, and regional transportation functions.

Sec. 472.0312. DESIGNATION AND BOUNDARIES. (a) The governor shall designate, in accordance with 23 U.S.C. Section 134, a metropolitan planning organization for each urbanized area of this state having a population of more than 50,000.

(b) A metropolitan planning organization must be designated or redesignated in accordance with, and its boundaries determined by, 23 U.S.C. Section 134.

(c) Each designated metropolitan planning organization must be fully operational not later than the 180th day after the date of its designation.

Sec. 472.0313. ORGANIZATION. A metropolitan planning organization is a governmental entity. The policy board is subject to Chapter 551, Government Code.

Sec. 472.0316. REPRESENTATION OF TRANSPORTATION-RELATED ENTITIES. (a) In metropolitan areas in which authorities or other agencies have been or may be created by law to perform transportation functions and are performing transportation functions, the authorities or other agencies may be provided voting membership on the policy board.

(b) In all other metropolitan planning organizations in which transportation authorities or agencies are to be represented by elected officials from a municipality or county, the organization shall establish a process by which the collective interests of such authorities or other agencies are expressed and conveyed.

Sec. 472.0332. DUTIES. In addition to the requirements of federal law, a metropolitan planning organization shall perform the duties required by state law and those delegated by the commission under Subchapter H, Chapter 201.

Sec. 472.035. POWERS, DUTIES, AND RESPONSIBILITIES. (a) The powers, duties, and responsibilities of a metropolitan planning organization:

(1) are those specified in this subchapter or incorporated in an interlocal agreement entered into to implement this subchapter; and

(2) are to provide regional transportation forecasting and planning, set regional priorities, and make project selection decisions as provided by federal law and the commission.

(b) Each metropolitan planning organization shall perform all acts required by applicable federal or state law or rules that are necessary to qualify for federal aid.

(c) A metropolitan planning organization may not manage or implement individual projects, including procurement or management of the project design and construction process.

Sec. 472.036. PLANNING. (a) To the extent permitted by state or federal law, a metropolitan planning organization shall:

(1) be involved in the planning and programming of transportation facilities, including airports, intermunicipal and high-speed rail lines, seaports, and intermodal facilities; and

(2) in cooperation with the department, develop:

(A) a long-range transportation plan as required by Section 201.622;

(B) an annually updated transportation improvement program as required by Section 472.043; and

(C) an annual unified planning work program as required by Section 472.044.

(b) In developing the long-range transportation plan and the transportation improvement program under Subsection (a), each metropolitan planning organization shall consider projects and strategies that will:

(1) support the economic vitality of the metropolitan area, especially by enabling global competitiveness, productivity, and efficiency;

(2) increase the safety and security of the transportation system for motorized and nonmotorized users;

(3) increase the accessibility and mobility options available to people and for freight;

(4) protect and enhance the environment, promote energy conservation, and improve quality of life;

(5) enhance the integration and connectivity of the transportation system, across and between modes, for people and freight;

(6) promote efficient system management and operation; and

(7) emphasize the preservation of the existing transportation system.

(c) To provide recommendations to the department and local governmental entities regarding transportation plans and programs, each metropolitan planning organization shall:

(1) prepare a congestion management system for the metropolitan area and cooperate with the department in the development of any other transportation management system required by state or federal law;

(2) assist the department in mapping transportation planning boundaries required by state or federal law;

(3) assist the department in performing its duties relating to access management, functional classification of roads, and data collection;

(4) execute all agreements or certifications necessary to comply with applicable state or federal law;

(5) represent all the jurisdictional areas in the metropolitan area in the formulation of a transportation plan or program required by this subchapter; and

(6) perform all other duties required by state or federal law.

Sec. 472.037. TECHNICAL ADVISORY COMMITTEE. (a) Each metropolitan planning organization shall appoint a technical advisory committee whose members serve at the pleasure of the metropolitan planning organization.

(b) The membership of the technical advisory committee must include, if possible:

(1) planners;

(2) engineers;

(3) a representative of each political subdivision or agency or department of a political subdivision that provides transportation services, including, as applicable:

(A) a port authority, navigation district, or public transit authority; or

(B) a county or municipal airport or transit department;

(4) the superintendent of each school district in the jurisdiction of the metropolitan planning organization or a person designated by the superintendent; and

(5) other appropriate representatives of affected local governments.

Sec. 472.038. SAFE ACCESS TO SCHOOLS. (a) In addition to any other duty assigned to it by the metropolitan planning organization or by state or federal law, the technical advisory committee is responsible for considering safe access to schools in its review of transportation project priorities, long-range transportation plans, and transportation improvement programs and shall advise the metropolitan planning organization on those issues.

(b) The technical advisory committee shall coordinate its actions with local school boards and other local programs and organizations in the metropolitan area that participate in school safety activities, including locally established community traffic safety teams.

(c) A school board must provide the appropriate metropolitan planning organization with information concerning future school sites and the coordination of transportation services.

Sec. 472.039. EMPLOYEES. (a) Each metropolitan planning organization shall employ:

(1) an executive or staff director who reports directly to the organization's policy board for all matters regarding the administration and operation of the metropolitan planning organization; and

(2) any additional personnel the policy board considers necessary.

(b) The executive or staff director and additional personnel may be employed by the metropolitan planning organization or by another governmental entity, including a county, municipality, or regional planning organization that has a staff services agreement with the metropolitan planning organization.

(c) A metropolitan planning organization may enter into a contract with a local or state agency, private planning firm, private engineering firm, or other public or private entity to accomplish the metropolitan planning organization's transportation planning and programming duties and administrative functions.

(d) A metropolitan planning organization, for the purpose of influencing legislation, may not engage the services of a person who is required to register with the Texas Ethics Commission under Chapter 305, Government Code.

Sec. 472.040. TRAINING. (a) To enhance its members' knowledge, effectiveness, and participation in the transportation planning process, a metropolitan planning organization shall provide training opportunities and funds for the organization's members.

(b) Training of its policy board members may be conducted by the metropolitan planning organization or through statewide or federal training programs and initiatives that are specifically designed to meet the needs of metropolitan planning organization policy board members.

Sec. 472.041. COORDINATION WITH OTHER ENTITIES. A metropolitan planning organization may join with any other metropolitan planning organization or an individual political subdivision to:

(1) coordinate activities; or

(2) achieve any federal or state transportation planning or development goal or purpose consistent with federal or state law.

Sec. 472.043. TRANSPORTATION IMPROVEMENT PROGRAM. (a) Each metropolitan planning organization shall develop annually a list of project priorities and a transportation improvement program. The prevailing principles to be considered by the metropolitan planning organization when developing a list are:

(1) preserving the existing transportation infrastructure;

(2) enhancing the economic competitiveness of this state; and

(3) improving travel choices to ensure mobility.

(b) The transportation improvement program may be used to initiate federally aided transportation facilities and improvements and other transportation facilities and improvements, including transit, rail, aviation, and port facilities.

(c) The transportation improvement program must be consistent, to the maximum extent feasible, with comprehensive plans of the political subdivisions the boundaries of which are in the metropolitan area served by the metropolitan planning organization.

Sec. 472.044. UNIFIED PLANNING WORK PROGRAM. (a) Each metropolitan planning organization shall develop, in cooperation with the department and public transit operators, a unified planning work program that lists all planning tasks to be undertaken during the program year.

(b) The unified planning work program must provide a complete description of each planning task and an estimated budget for that task and must comply with applicable state and federal law.

Sec. 472.045. APPLICATION OF FEDERAL LAW. (a) On notification by an agency of the federal government that a provision of this subchapter conflicts with a federal law or regulation, the federal law or regulation takes precedence to the extent of the conflict until the conflict is resolved.

(b) The department or a metropolitan planning organization may take any action necessary to comply with federal laws and regulations or to continue to remain eligible to receive federal funds.

Sec. 472.046. PUBLICATION OF INFORMATION ON INTERNET WEBSITE. A metropolitan planning organization shall publish financial information on its Internet website, including information regarding:

(1) budgeted annual revenues and expenditures;

(2) actual annual revenues and expenditures; and

(3) staffing levels.

(b) A technical advisory committee of a metropolitan planning organization is not required to comply with Section 472.037, Transportation Code, as added by this section, before January 1, 2010.

SECTION 2.08. Section 472.032, Transportation Code, is amended to read as follows:

Sec. 472.032. VOTING PROXIES BY POLICY BOARD MEMBERS PROHIBITED. (a) A policy board may not allow its members to vote by proxy. A policy board may allow for the appointment of alternate members, if defined by its bylaws, to serve in the absence of the primary members [provide in its bylaws for appointment of voting proxies by its members].

(b) [A proxy appointed under Subsection (a):

[(1) acts on behalf of and under the supervision of the policy board member who appointed the proxy;

[(2) must be appointed in writing; and

[(3) is authorized to vote for the policy board member who appointed the proxy to the extent the member has given the proxy the member's voting power.

[(c)] A legislative member of a policy board may not be counted as absent at a meeting of the policy board during a legislative session.

[(d) A legislative member of a policy board may only appoint a proxy under Subsection (a) who is:

[(1) the legislative member's employee or staff member;

[(2) a person related to the member within the second degree by consanguinity, as determined under Subchapter B, Chapter 573, Government Code, who is not required to register as a lobbyist under Chapter 305, Government Code;

[(3) another legislative member of the policy board; or

[(4) a locally elected official.]

SECTION 2.09. Section 364.004(c), Transportation Code, is repealed.

ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS

SECTION 3.01. (a) Section 201.801, Transportation Code, is amended to read as follows:

Sec. 201.801. [INFORMATION ABOUT DEPARTMENT;] COMPLAINTS. (a) The department shall maintain a system to promptly and efficiently act on complaints filed with the department. The department shall maintain information about the parties to and the subject matter of a complaint and a summary of the results of the review or investigation of the complaint and the disposition of the complaint.

(b) The department shall make information available describing its procedures for complaint investigation and resolution [prepare information of public interest describing the functions of the department and the department's procedures by which a complaint is filed with the department and resolved by the department. The department shall make the information available to the public and appropriate state agencies].

[(b) The commission by rule shall establish methods by which consumers and service recipients are notified of the department's name, mailing address, and telephone number for directing complaints to the department. The commission may provide for that notification:

[(1) on each registration form, application, or written contract for services of an individual or entity regulated by the department;

[(2) on a sign prominently displayed in the place of business of each individual or entity regulated by the department; or

[(3) in a bill for service provided by an individual or entity regulated by the department.]

(c) [The department shall:

[(1) keep an information file about each written complaint filed with the department that the department has the authority to resolve; and

[(2) provide the person who filed the complaint, and each person or entity that is the subject of the complaint, information about the department's policies and procedures relating to complaint investigation and resolution.

[(d)] The department[, at least quarterly and until final disposition of a written complaint that is filed with the department and that the department has the authority to resolve,] shall periodically notify the parties to the complaint of its status until final disposition [unless the notice would jeopardize an undercover investigation].

(d) The commission shall adopt rules applicable to each division and district to establish a process to act on complaints filed with the department [(e) With regard to each complaint filed with the department, the department shall keep the following information:

[(1) the date the complaint is filed;

[(2) the name of the person filing the complaint;

[(3) the subject matter of the complaint;

[(4) a record of each person contacted in relation to the complaint;

[(5) a summary of the results of the review or investigation of the complaint; and

[(6) if the department takes no action on the complaint, an explanation of the reasons that no action was taken].

(e) The department shall develop a standard form for submitting a complaint and make the form available on its Internet website. The department shall establish a method to submit complaints electronically.

(f) The department shall develop a method for analyzing the sources and types of complaints and violations and establish categories for the complaints and violations. The department shall use the analysis to focus its information and education efforts on specific problem areas identified through the analysis.

(g) The department shall:

(1) compile:

(A) detailed statistics and analyze trends on complaint information, including:

(i) the nature of the complaints;

(ii) their disposition; and

(iii) the length of time to resolve complaints; and

(B) complaint information on a district and a divisional basis; and

(2) report the information on a monthly basis to the division directors and office directors and on a quarterly basis to the commission.

(b) The Texas Transportation Commission shall adopt rules under Section 201.801, Transportation Code, as amended by this section not later than March 1, 2010.

SECTION 3.02. Subchapter J, Chapter 201, Transportation Code, is amended by adding Section 201.812 to read as follows:

Sec. 201.812. PUBLIC INVOLVEMENT POLICY. (a) The department shall develop and implement a policy for public involvement that guides and encourages public involvement with the department. The policy must:

(1) provide for the use of public involvement techniques that target different groups and individuals;

(2) encourage continuous contact between the department and persons outside the department throughout the transportation decision-making process;

(3) require the department to make efforts toward:

(A) clearly tying public involvement to decisions made by the department; and

(B) providing clear information to the public about specific outcomes of public input; and

(4) apply to all public input with the department, including input:

(A) on statewide transportation policy-making;

(B) in connection with the environmental process relating to specific projects; and

(C) into the department's rulemaking procedures.

(b) The department shall document the ratio of positive public input to negative public input regarding all environmental impact statements as expressed by the public through the department's public involvement process. The department shall:

(1) present this information to the commission in an open meeting; and

(2) report this information on the department's Internet website in a timely manner.

ARTICLE 4. CONTRACTING FUNCTIONS

SECTION 4.01. Section 223.002, Transportation Code, is amended to read as follows:

Sec. 223.002. NOTICE OF BIDS [BY PUBLICATION]. [(a)] The department shall give [publish] notice to interested persons regarding [of] the time and place at which bids on a contract will be opened and the contract awarded. The department by rule shall determine the most effective method for providing the notice required by this section.

[(b) The notice must be published in a newspaper published in the county in which the improvement is to be made once a week for at least two weeks before the time set for awarding the contract and in two other newspapers that the department may designate.

[(c) Instead of the notice required by Subsection (b), if the department estimates that the contract involves an amount less than $300,000, notice may be published in two successive issues of a newspaper published in the county in which the improvement is to be made.

[(d) If a newspaper is not published in the county in which the improvement is to be made, notice shall be published in a newspaper published in the county:

[(1) nearest the county seat of the county in which the improvement is to be made; and

[(2) in which a newspaper is published.]

SECTION 4.02. Section 223.201, Transportation Code, is amended by amending Subsections (a) and (g) and adding Subsection (j) to read as follows:

(a) Subject to Section 223.202, the department may enter into a comprehensive development agreement with a private entity to design, develop, finance, construct, maintain, repair, operate, extend, or expand a state highway [:

[(1) toll project;

[(2) facility or a combination of facilities on the Trans-Texas Corridor;

[(3) state highway improvement project that includes both tolled and nontolled lanes and may include nontolled appurtenant facilities;

[(4) state highway improvement project in which the private entity has an interest in the project; or

[(5) state highway improvement project financed wholly or partly with the proceeds of private activity bonds, as defined by Section 141(a), Internal Revenue Code of 1986].

(g) The department may combine in a comprehensive development agreement under this subchapter a state highway [toll project] and a rail facility as defined by Section 91.001.

(j) Notwithstanding any other law to the contrary:

(1) the department's authority to enter into a comprehensive development agreement and any related facility agreement, whether under this section or any other law, is limited to a highway, road, or rail project that costs $150 million or more, and may not be considered to extend to projects involving public utilities or any other facility that is not a highway, road, or rail facility; and

(2) except in connection with any existing rights granted to a private entity with respect to the State Highway 130 project, the department may not charge any fee or grant a private entity the right to charge or collect any fee in connection with a comprehensive development agreement or any related agreement under former Chapter 227 or any successor law in connection with any facility that is not a highway, road, or rail facility, including a public utility facility.

SECTION 4.03. Section 223.203(e-2), Transportation Code, is amended to read as follows:

(e-2) In this section, "design-build contract" means a comprehensive development agreement that includes the design and construction of a [turnpike] project, does not include the financing of a [turnpike] project, and may include the acquisition, maintenance, or operation of a [turnpike] project.

SECTION 4.04. Section 223.203(m), Transportation Code, is amended to read as follows:

(m) The department may pay an unsuccessful private entity that submits a responsive proposal in response to a request for detailed proposals under Subsection (f) a stipulated amount in exchange for the work product contained in that proposal. A stipulated amount must be stated in the request for proposals and may not exceed the lesser of one-half of one percent of the contract amount or the value of any work product contained in the proposal that can, as determined by the department, be used by the department in the performance of its functions. The use by the department of any design element contained in an unsuccessful proposal is subject to the private entity's acceptance of the stipulated amount, is at the sole risk and discretion of the department, and does not confer liability on the recipient of the stipulated amount under this section. After acceptance and payment of the stipulated amount:

(1) the department owns with the unsuccessful proposer jointly the rights to, and may make use of any work product contained in, the proposal, including the technologies, techniques, methods, processes, ideas, and information contained in the project design; and

(2) the use by the unsuccessful proposer of any portion of the work product contained in the proposal is at the sole risk of the unsuccessful proposer and does not confer liability on the department.

SECTION 4.05. Section 223.208(e), Transportation Code, is amended to read as follows:

(e) Notwithstanding anything in Section 201.112 or other law to the contrary, and subject to compliance with the dispute resolution procedures set out in the comprehensive development agreement, an obligation of the commission or the department under a comprehensive development agreement entered into under this subchapter [or Section 227.023(c)] to make or secure payments to a person because of the termination of the agreement, including the purchase of the interest of a private participant or other investor in a project, may be enforced by mandamus against the commission, the department, and the comptroller in a district court of Travis County, and the sovereign immunity of the state is waived for that purpose. The district courts of Travis County shall have exclusive jurisdiction and venue over and to determine and adjudicate all issues necessary to adjudicate any action brought under this subsection. The remedy provided by this subsection is in addition to any legal and equitable remedies that may be available to a party to a comprehensive development agreement. This subsection does not apply to a design-build contract, as defined by Section 223.203(e-2), for a nontolled facility.

SECTION 4.06. (a) Subchapter E, Chapter 223, Transportation Code, is amended by adding Section 223.211 to read as follows:

Sec. 223.211. APPROVAL AND CERTIFICATION. A comprehensive development agreement, including a facility agreement under a comprehensive development agreement, under which a private entity will operate a toll project or be entitled to receive revenue from the project must be:

(1) reviewed by the attorney general for legal sufficiency under Section 371.051, as added by Chapter 264 (S.B. 792), Acts of the 80th Legislature, Regular Session, 2007;

(2) reviewed by the comptroller for financial viability and signed and certified by the comptroller if approved; and

(3) signed by the chair of the commission.

(b) The change in law made by Section 223.211, Transportation Code, as added by this section, applies only to a comprehensive development agreement entered into on or after the effective date of this Act.

SECTION 4.07. The changes in law made by this Act to Sections 223.201(a) and 223.208(e), Transportation Code, relating to the Texas Department of Transportation's authority regarding comprehensive development agreements for segments of the former Trans-Texas Corridor do not apply to the State Highway 130, Segments 5 and 6 project. An agreement entered into for that project is governed by the law in effect on the date the agreement was entered into, and the former law is continued in effect for that purpose.

ARTICLE 5. REGULATION OF MOTOR VEHICLE DEALERS, SALVAGE VEHICLE

DEALERS, AND HOUSEHOLD GOODS CARRIERS

SECTION 5.01. (a) Section 643.153, Transportation Code, is amended by amending Subsection (b) and adding Subsections (c), (h), and (i) to read as follows:

(b) The department may adopt rules necessary to ensure that a customer of a motor carrier transporting household goods is protected from deceptive or unfair practices and unreasonably hazardous activities. The rules must:

(1) establish a formal process for resolving a dispute over a fee or damage;

(2) require a motor carrier to indicate clearly to a customer whether an estimate is binding or nonbinding and disclose the maximum price a customer could be required to pay;

(3) create a centralized process for making complaints about a motor carrier that also allows a customer to inquire about a carrier's complaint record; [and]

(4) require a motor carrier transporting household goods to list a place of business with a street address in this state and the carrier's registration number issued under this article in any print advertising published in this state; and

(5) require a motor carrier transporting household goods to submit to the department, at the time of the original motor carrier registration and at the renewal of the registration, documentation on whether the motor carrier:

(A) regularly requests and obtains criminal history record information on its employees under Chapter 145, Civil Practice and Remedies Code; and

(B) uses the criminal history record information to exclude from employment persons who have committed a serious criminal offense.

(c) The department shall make available to the public on the department's Internet website the information received under Subsection (b)(5) to allow members of the public to make an informed choice when selecting a motor carrier to transport household goods.

(h) Subject to Subsection (i), the department may order a motor carrier that transports household goods to pay a refund to a customer as provided in an agreement resulting from an informal settlement instead of or in addition to imposing an administrative penalty under this chapter.

(i) The amount of a refund ordered as provided in an agreement resulting from an informal settlement may not exceed the amount the customer paid to the motor carrier for a service or the amount the customer paid for an item damaged by the motor carrier, without requiring an estimation of the actual cost of the damage. The department may not require payment of other damages or estimate harm in a refund order.

(b) The change in law made by Sections 643.153(h) and (i), Transportation Code, as added by this section, applies only to an agreement to transport household goods entered into on or after the effective date of this Act. An agreement to transport household goods entered into before the effective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

SECTION 5.02. (a) Section 643.251(b), Transportation Code, is amended to read as follows:

(b) Except as provided by this section, the amount of an administrative penalty may not exceed $5,000. If it is found that the motor carrier knowingly committed the violation, the penalty may not exceed $15,000. [If it is found that the motor carrier knowingly committed multiple violations, the aggregate penalty for the multiple violations may not exceed $30,000.] Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty.

(b) The change in law made by this section to Section 643.251, Transportation Code, applies only to a violation committed by a motor carrier on or after the effective date of this Act. For purposes of this subsection, a violation was committed before the effective date of this Act if any element of the violation was committed before that date. A violation committed by a motor carrier before the effective date of this Act is covered by the law in effect on the date the violation was committed, and the former law is continued in effect for that purpose.

SECTION 5.03. Subchapter F, Chapter 643, Transportation Code, is amended by adding Sections 643.257 and 643.258 to read as follows:

Sec. 643.257. SUMMARY SUSPENSION. (a) The board may summarily suspend the registration of a motor carrier registered under this chapter if the motor carrier's failure to comply with this chapter or a rule adopted under this chapter is determined by the board to constitute a continuing and imminent threat to the public safety and welfare.

(b) To initiate a proceeding to take action under Subsection (a), the board must serve notice on the motor carrier. The notice must:

(1) state the grounds for summary suspension;

(2) be personally served on the motor carrier or sent to the motor carrier by certified or registered mail, return receipt requested, to the motor carrier's mailing address as it appears in the department's records; and

(3) inform the motor carrier of the right to a hearing on the suspension.

(c) The suspension is effective on the date notice is personally served or received by mail. The motor carrier is entitled to appeal the suspension in the manner provided by Section 643.2525 for the appeal of an order of the board.

Sec. 643.258. EMERGENCY CEASE AND DESIST ORDER. (a) If it appears to the board that a motor carrier who is not registered to transport household goods for compensation under Section 643.051 is violating this chapter, a rule adopted under this chapter, or another state statute or rule relating to the transportation of household goods and the board determines that the unauthorized activity constitutes a clear, imminent, or continuing threat to the public health and safety, the board may:

(1) issue an emergency cease and desist order prohibiting the motor carrier from engaging in the activity; and

(2) report the activity to a local law enforcement agency or the attorney general for prosecution.

(b) An order issued under Subsection (a) must:

(1) be delivered on issuance to the motor carrier affected by the order by personal delivery or registered or certified mail, return receipt requested, to the motor carrier's last known address;

(2) state the acts or practices alleged to be an unauthorized activity and require the motor carrier immediately to cease and desist from the unauthorized activity; and

(3) contain a notice that a request for hearing may be filed under this section.

(c) A motor carrier against whom an emergency cease and desist order is directed may request a hearing before the 11th day after the date it is served on the motor carrier. If the motor carrier does not request a hearing in that time, the order is final and nonappealable as to that motor carrier. A request for a hearing must:

(1) be in writing and directed to the board; and

(2) state the grounds for the request to set aside or modify the order.

(d) On receiving a request for a hearing, the board shall serve notice of the time and place of the hearing by personal delivery or registered or certified mail, return receipt requested. The hearing must be held not later than the 10th day after the date the board receives the request for a hearing unless the parties agree to a later hearing date. A hearing under this subsection is subject to Chapter 2001, Government Code.

(e) After the hearing, the board shall affirm, modify, or set aside wholly or partly the emergency cease and desist order. An order affirming or modifying the emergency cease and desist order is immediately final for purposes of enforcement and appeal.

(f) An order under this section continues in effect unless the order is stayed by the board. The board may impose any condition before granting a stay of the order.

(g) The board may release to the public a final cease and desist order issued under this section or information regarding the existence of the order if the board determines that the release would enhance the effective enforcement of the order or will serve the public interest.

(h) A violation of an order issued under this section constitutes additional grounds for imposing an administrative penalty under this chapter.

SECTION 5.04. Section 2301.654, Occupations Code, is amended to read as follows:

Sec. 2301.654. PROBATION. If a suspension of a license is probated, the board may:

(1) require the license holder to report regularly to the board on matters that are the basis of the probation; [or]

(2) limit activities to those prescribed by the board; or

(3) require the license holder to obtain specialized training so that the license holder attains a degree of skill satisfactory to the board in those areas that are the basis of the probation.

SECTION 5.05. The heading to Section 2301.801, Occupations Code, is amended to read as follows:

Sec. 2301.801. ADMINISTRATIVE [CIVIL] PENALTY.

SECTION 5.06. Section 2301.801, Occupations Code, is amended by amending Subsections (a) and (c) and adding Subsections (d), (e), (f), and (g) to read as follows:

(a) If, after a proceeding under this chapter and board rules, the board determines that a person is violating or has violated this chapter, a rule adopted or order issued under this chapter, or Section 503.038(a), Transportation Code, the board may impose an administrative [a civil] penalty. The amount of the penalty may not exceed $10,000 for each violation. Each act of violation and each day a violation continues is a separate violation.

(c) The board by rule shall adopt a schedule of administrative penalties based on the criteria in Subsection (b) to ensure that the amount of a penalty imposed under this section is appropriate to the violation [Notwithstanding any other law to the contrary, a civil penalty recovered under this chapter shall be deposited in the state treasury to the credit of the state highway fund].

(d) The enforcement of an administrative penalty ordered under this section may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the board to contest the affidavit as provided by those rules.

(e) The attorney general may sue to collect an administrative penalty assessed under this section. The attorney general may recover on behalf of the state the reasonable expenses incurred in obtaining the penalty, including investigation and court costs, reasonable attorney's fees, witness fees, and other expenses.

(f) An administrative penalty collected under this section shall be deposited to the credit of the general revenue fund.

(g) A proceeding to impose an administrative penalty under this section is a contested case hearing under Chapter 2001, Government Code.

SECTION 5.07. Subchapter Q, Chapter 2301, Occupations Code, is amended by adding Section 2301.808 to read as follows:

Sec. 2301.808. REFUND. (a) Subject to Subsection (b), the board may order a motor vehicle dealer to pay a refund to a consumer as provided in an agreement resulting from an informal settlement instead of or in addition to imposing an administrative penalty under this chapter.

(b) The amount of a refund ordered as provided in an agreement resulting from an informal settlement may not exceed the amount the consumer paid to the motor vehicle dealer. The board may not require payment of other damages or estimate harm in a refund order.

SECTION 5.08. Subchapter H, Chapter 2302, Occupations Code, is amended by adding Section 2302.352 to read as follows:

Sec. 2302.352. ADMINISTRATIVE PENALTY. (a) The board may impose an administrative penalty on a salvage vehicle dealer licensed under this chapter who violates this chapter or a rule or order adopted under this chapter.

(b) The amount of an administrative penalty imposed under this section may not exceed $5,000. Each day a violation continues or occurs is a separate violation for the purpose of imposing a penalty. The amount of the penalty shall be based on:

(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;

(2) the economic harm to property or the environment caused by the violation;

(3) the history of previous violations;

(4) the amount necessary to deter a future violation;

(5) the threat to the public safety and welfare;

(6) efforts to correct the violation; and

(7) any other matter that justice may require.

(c) The board by rule shall adopt a schedule of administrative penalties based on the criteria listed in Subsection (b) for violations subject to an administrative penalty under this section to ensure that the amount of a penalty imposed is appropriate to the violation.

(d) The enforcement of an administrative penalty may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the board to contest the affidavit as provided by those rules.

(e) The attorney general may sue to collect an administrative penalty imposed under this section. In the suit the attorney general may recover, on behalf of the state, the reasonable expenses incurred in obtaining the penalty, including investigation and court costs, reasonable attorney's fees, witness fees, and other expenses.

(f) An administrative penalty collected under this section shall be deposited in the general revenue fund.

(g) A proceeding to impose an administrative penalty under this section is a contested case under Chapter 2001, Government Code.

SECTION 5.09. The change in law made by Section 2301.808, Occupations Code, as added by this article, applies only to a motor vehicle purchased or leased on or after the effective date of this Act. A motor vehicle purchased or leased before the effective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

ARTICLE 6. REGULATION OF OUTDOOR ADVERTISING

SECTION 6.01. Section 391.004, Transportation Code, is amended to read as follows:

Sec. 391.004. TEXAS HIGHWAY BEAUTIFICATION FUND ACCOUNT. The Texas highway beautification fund account is an account in the general revenue fund. Money the commission receives under this chapter shall be deposited to the credit of the Texas highway beautification fund account. The commission shall use money in the Texas highway beautification fund account to administer this chapter and Chapter 394.

SECTION 6.02. (a) Subchapter A, Chapter 391, Transportation Code, is amended by adding Section 391.006 to read as follows:

Sec. 391.006. COMPLAINTS; RECORDS. (a) The department by rule shall establish procedures for accepting and resolving written complaints related to outdoor advertising under this chapter. The rules must include:

(1) a process to make information available describing its procedures for complaint investigation and resolution, including making information about the procedures available on the department's Internet website;

(2) a simple form for filing complaints with the department;

(3) a system to prioritize complaints so that the most serious complaints receive attention before less serious complaints; and

(4) a procedure for compiling and reporting detailed annual statistics about complaints.

(b) The department shall provide on the department's Internet website information about the department's policies and procedures relating to complaint investigation and resolution. The department shall also provide this information to any person requesting a written copy.

(c) The department shall keep for at least 10 years an information file about each written complaint filed with the department that the department has authority to resolve. The department shall keep the following information for each complaint for the purpose of enforcing this chapter:

(1) the date the complaint is filed;

(2) the name of the person filing the complaint;

(3) the subject matter of the complaint;

(4) each person contacted in relation to the complaint;

(5) a summary of the results of the review or investigation of the complaint; and

(6) if the department does not take action on the complaint, an explanation of the reasons that action was not taken.

(d) If a written complaint is filed with the department that the department has authority to resolve, the department, at least quarterly and until final disposition of the complaint, shall notify the parties to the complaint of the status of the complaint unless the notice would jeopardize an ongoing department investigation.

(b) The Texas Transportation Commission shall adopt rules under Section 391.006, Transportation Code, as added by this section, not later than September 1, 2010.

SECTION 6.03. Section 391.035(c), Transportation Code, is amended to read as follows:

(c) A penalty collected under this section shall be deposited to the credit of the Texas highway beautification [state highway] fund account if collected by the attorney general and to the credit of the county road and bridge fund of the county in which the violation occurred if collected by a district or county attorney.

SECTION 6.04. Subchapter B, Chapter 391, Transportation Code, is amended by adding Section 391.0355 to read as follows:

Sec. 391.0355. ADMINISTRATIVE PENALTY. (a) In lieu of a suit to collect a civil penalty, the commission, after notice and an opportunity for a hearing before the commission, may impose an administrative penalty against a person who violates this chapter or a rule adopted by the commission under this chapter. Each day a violation continues is a separate violation.

(b) The amount of the administrative penalty may not exceed the maximum amount of a civil penalty under Section 391.035.

(c) A proceeding under this section is a contested case under Chapter 2001, Government Code.

(d) Judicial review of an appeal of an administrative penalty imposed under this section is under the substantial evidence rule.

(e) An administrative penalty collected under this section shall be deposited to the credit of the Texas highway beautification fund account.

SECTION 6.05. Section 391.063, Transportation Code, is amended to read as follows:

Sec. 391.063. LICENSE FEE. The commission may set the amount of a license fee according to a scale graduated by the number of units of outdoor advertising and number of off-premise signs under Chapter 394 owned by a license applicant.

SECTION 6.06. Section 391.064, Transportation Code, is amended by adding Subsection (c) to read as follows:

(c) A person is not required to file with the commission a surety bond for outdoor advertising under this chapter if the person files with the commission a surety bond for an off-premise sign under Chapter 394.

SECTION 6.07. Section 391.065(b), Transportation Code, is amended to read as follows:

(b) For the efficient management and administration of this chapter and to reduce the number of employees required to enforce this chapter, the commission shall adopt rules for issuing standardized forms that are for submission by license holders and applicants and that provide for an accurate showing of the number, location, or other information required by the commission for each license holder's or applicant's outdoor advertising or off-premise signs under Chapter 394.

SECTION 6.08. Section 391.066, Transportation Code, is amended by adding Subsections (d) and (e) to read as follows:

(d) The commission may deny the renewal of a license holder's license if the license holder has not complied with the permit requirements of this chapter or Chapter 394.

(e) The commission by rule shall adopt procedures for the suspension, revocation, or denial of a renewal of a license under this section, or the assessment of an administrative penalty under Section 391.0355. The procedures must ensure that the enforcement action is appropriate for the violation for which it is taken. The rules adopting the procedures must require the commission to consider:

(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;

(2) the economic harm to property or the environment caused by the violation;

(3) the history of previous violations;

(4) for an administrative penalty, the amount necessary to deter future violations;

(5) the threat to the public safety and welfare posed by the violation;

(6) efforts to correct the violation; and

(7) any other matter that justice may require.

SECTION 6.09. Subchapter C, Chapter 391, Transportation Code, is amended by adding Section 391.0661 to read as follows:

Sec. 391.0661. APPLICABILITY OF LICENSE. In addition to authorizing a person to erect or maintain outdoor advertising, a license issued under this chapter authorizes a person to erect or maintain an off-premise sign under Chapter 394.

SECTION 6.10. Section 391.254(c), Transportation Code, is amended to read as follows:

(c) A civil penalty collected by the attorney general under this section shall be deposited to the credit of the Texas highway beautification [state highway] fund account.

SECTION 6.11. Section 394.005, Transportation Code, is amended to read as follows:

Sec. 394.005. DISPOSITION OF FEES. Money the commission receives [A registration fee collected] under this chapter [Section 394.048 by the commission] shall be deposited to the credit of the Texas highway beautification [state highway] fund account.

SECTION 6.12. (a) Subchapter A, Chapter 394, Transportation Code, is amended by adding Section 394.006 to read as follows:

Sec. 394.006. COMPLAINTS; RECORDS. (a) The department by rule shall establish procedures for accepting and resolving written complaints related to signs under this chapter. The rules must include:

(1) a process to make information available describing its procedures for complaint investigation and resolution, including making information about the procedures available on the department's Internet website;

(2) a simple form for filing complaints with the department;

(3) a system to prioritize complaints so that the most serious complaints receive attention before less serious complaints; and

(4) a procedure for compiling and reporting detailed annual statistics about complaints.

(b) The department shall provide on the department's Internet website information about the department's policies and procedures relating to complaint investigation and resolution. The department shall also provide this information to any person requesting a written copy.

(c) The department shall keep for at least 10 years an information file about each written complaint filed with the department that the department has authority to resolve. The department shall keep the following information for each complaint for the purpose of enforcing this chapter:

(1) the date the complaint is filed;

(2) the name of the person filing the complaint;

(3) the subject matter of the complaint;

(4) each person contacted in relation to the complaint;

(5) a summary of the results of the review or investigation of the complaint; and

(6) if the department does not take action on the complaint, an explanation of the reasons that action was not taken.

(d) If a written complaint is filed with the department that the department has authority to resolve, the department, at least quarterly and until final disposition of the complaint, shall notify the parties to the complaint of the status of the complaint unless the notice would jeopardize an ongoing department investigation.

(b) The Texas Transportation Commission shall adopt rules under Section 394.006, Transportation Code, as added by this section, not later than September 1, 2010.

SECTION 6.13. The heading to Subchapter B, Chapter 394, Transportation Code, is amended to read as follows:

SUBCHAPTER B. LICENSE AND PERMIT FOR OFF-PREMISE SIGN

SECTION 6.14. (a) Subchapter B, Chapter 394, Transportation Code, is amended by adding Sections 394.0201, 394.0202, 394.0203, 394.0204, 394.0205, 394.0206, 394.0207, 394.027, 394.028, and 394.029 to read as follows:

Sec. 394.0201. ERECTING OFF-PREMISE SIGN WITHOUT LICENSE; OFFENSE. (a) A person commits an offense if the person wilfully erects or maintains an off-premise sign on a rural road without a license under this subchapter.

(b) An offense under this section is a misdemeanor punishable by a fine of not less than $500 or more than $1,000. Each day of the proscribed conduct is a separate offense.

(c) A person is not required to obtain a license to erect or maintain an on-premise sign.

Sec. 394.0202. ISSUANCE AND PERIOD OF LICENSE. (a) The commission shall issue a license to a person who:

(1) files with the commission a completed application form within the time specified by the commission;

(2) pays the appropriate license fee; and

(3) files with the commission a surety bond.

(b) A license may be issued for one year or longer.

(c) At least 30 days before the date on which a person's license expires, the commission shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the commission.

Sec. 394.0203. LICENSE FEE. The commission may set the amount of a license fee according to a scale graduated by the number of off-premise signs and units of outdoor advertising under Chapter 391 owned by a license applicant.

Sec. 394.0204. SURETY BOND. (a) The surety bond required of an applicant for a license under Section 394.0202 must be:

(1) in the amount of $2,500 for each county in the state in which the person erects or maintains an off-premise sign; and

(2) payable to the commission for reimbursement for removal costs of an off-premise sign that the license holder unlawfully erects or maintains.

(b) A person may not be required to provide more than $10,000 in surety bonds.

Sec. 394.0205. RULES; FORMS. (a) The commission may adopt rules to implement Sections 394.0201(a), 394.0202, 394.0203, 394.0204, and 394.0206.

(b) For the efficient management and administration of this chapter and to reduce the number of employees required to enforce this chapter, the commission shall adopt rules for issuing standardized forms that are for submission by license holders and applicants and that provide for an accurate showing of the number, location, or other information required by the commission for each license holder's or applicant's off-premise signs or outdoor advertising under Chapter 391.

(c) The commission may not adopt a rule under this chapter that restricts competitive bidding or advertising by the holder of a license issued under this chapter other than a rule to prohibit false, misleading, or deceptive practices. The limitation provided by this section applies only to rules relating to the occupation of outdoor advertiser and does not affect the commission's power to regulate the orderly and effective display of an off-premise sign under this chapter. A rule to prohibit false, misleading, or deceptive practices may not:

(1) restrict the use of:

(A) any legal medium for an advertisement;

(B) the license holder's advertisement under a trade name; or

(C) the license holder's personal appearance or voice in an advertisement, if the license holder is an individual; or

(2) relate to the size or duration of an advertisement by the license holder.

Sec. 394.0206. REVOCATION OR SUSPENSION OF LICENSE; APPEAL. (a) The commission may revoke or suspend a license issued under this subchapter or place on probation a license holder whose license is suspended if the license holder violates this chapter or a rule adopted under this chapter. If the suspension of the license is probated, the department may require the license holder to report regularly to the commission on any matter that is the basis of the probation.

(b) The judicial appeal of the revocation or suspension of a license must be initiated not later than the 15th day after the date of the commission's action.

(c) The commission may adopt rules for the reissuance of a revoked or suspended license and may set fees for the reissuance.

(d) The commission may deny the renewal of a license holder's existing license if the license holder has not complied with the permit requirements of this chapter or Chapter 391.

Sec. 394.0207. APPLICABILITY OF LICENSE. In addition to authorizing a person to erect or maintain an off-premise sign, a license issued under this chapter authorizes a person to erect or maintain outdoor advertising under Chapter 391.

Sec. 394.027. FEE AMOUNTS. The license and permit fees required by this subchapter may not exceed an amount reasonably necessary to cover the administrative costs incurred to enforce this chapter.

Sec. 394.028. EXCEPTIONS FOR CERTAIN NONPROFIT ORGANIZATIONS. (a) The combined license and permit fees under this subchapter may not exceed $10 for an off-premise sign erected and maintained by a nonprofit organization in a municipality or a municipality's extraterritorial jurisdiction if the sign relates to or promotes only the municipality or a political subdivision whose jurisdiction is wholly or partly concurrent with the municipality.

(b) The nonprofit organization is not required to file a bond as provided by Section 394.0202(a)(3).

Sec. 394.029. DENIAL OF PERMIT; APPEAL. The commission may create a process by which an applicant may appeal a denial of a permit under this subchapter.

(b) The change in law made by Section 394.0201, Transportation Code, as added by this section, applies only to an off-premise sign erected or for which the permit expires on or after the effective date of this Act. An off-premise sign for which a permit is issued before the effective date of this Act is covered by the law in effect when the permit was issued, and the former law is continued in effect for that purpose.

SECTION 6.15. Section 394.050, Transportation Code, is amended to read as follows:

Sec. 394.050. [BOARD OF] VARIANCE. The executive director or a person designated by the executive director [commission shall provide for a board of variance that], in an appropriate case and subject to an appropriate condition or safeguard, may make a special exception to this chapter regarding a permit for an off-premise outdoor sign on a rural road.

SECTION 6.16. Section 394.081(c), Transportation Code, is amended to read as follows:

(c) A civil penalty collected under this section shall be deposited to the credit of the Texas highway beautification [state highway] fund account if collected by the attorney general and to the credit of the county road and bridge fund if collected by a district or county attorney.

SECTION 6.17. Sections 394.082(a), (d), and (e), Transportation Code, are amended to read as follows:

(a) In lieu of a suit to collect a civil penalty, the commission, after notice and an opportunity for a hearing before the commission, may impose an administrative penalty against a person who [intentionally] violates this chapter or a rule adopted by the commission under this chapter. Each day a violation continues is a separate violation.

(d) Judicial review of an appeal of an administrative penalty imposed under this section is under the substantial evidence rule [by trial de novo].

(e) An administrative penalty collected under this section shall be deposited to the credit of the Texas highway beautification [state highway] fund account.

ARTICLE 7. GREEN RIBBON PROJECT

SECTION 7.01. Subchapter I, Chapter 201, Transportation Code, is amended by adding Section 201.708 to read as follows:

Sec. 201.708. EXPENDITURES FOR HIGHWAY LANDSCAPING. (a) For each contract for a highway project, including a tolled highway project, that is located in an area designated by the United States Environmental Protection Agency as a nonattainment or near-nonattainment area under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 7407), the department shall allocate to the district or districts in which the project is to be located one-half of one percent of the total amount to be spent under the contract for construction, maintenance, and improvement of the project to be used for landscaping improvements for the project or other projects in the district or districts.

(b) Landscaping improvements may include:

(1) planting of indigenous or adapted trees and other plants that are suitable for the climate in the area; and

(2) preparing the soil and installing irrigation systems for the growth of trees and plants.

ARTICLE 8. REPEAL OF THE TRANS-TEXAS CORRIDOR

SECTION 8.01. Section 11.11(j), Tax Code, is amended to read as follows:

(j) For purposes of this section, any portion of a facility owned by the Texas Department of Transportation that is [part of the Trans-Texas Corridor, is] a rail facility or system[,] or is a highway in the state highway system[,] and that is licensed or leased to a private entity by that department under Chapter 91 or[,] 223, [or 227,] Transportation Code, is public property used for a public purpose if the rail facility or system, highway, or facility is operated by the private entity to provide transportation or utility services. Any part of a facility, rail facility or system, or state highway that is licensed or leased to a private entity for a commercial purpose is not exempt from taxation.

SECTION 8.02. Section 25.06(c), Tax Code, is amended to read as follows:

(c) This section does not apply to:

(1) any portion of a facility owned by the Texas Department of Transportation that is [part of the Trans-Texas Corridor, is] a rail facility or system[,] or is a highway in the state highway system and that is licensed or leased to a private entity by that department under Chapter 91[, 227,] or 361, Transportation Code; or

(2) a leasehold or other possessory interest granted by the Texas Department of Transportation in a facility owned by that department that is [part of the Trans-Texas Corridor, is] a rail facility or system[,] or is a highway in the state highway system.

SECTION 8.03. Section 25.07(c), Tax Code, is amended to read as follows:

(c) Subsection (a) does not apply to:

(1) any portion of a facility owned by the Texas Department of Transportation that is [part of the Trans-Texas Corridor, is] a rail facility or system[,] or is a highway in the state highway system and that is licensed or leased to a private entity by that department under Chapter 91[, 227,] or 361, Transportation Code; or

(2) a leasehold or other possessory interest granted by the Texas Department of Transportation in a facility owned by that department that is [part of the Trans-Texas Corridor, is] a rail facility or system[,] or is a highway in the state highway system.

SECTION 8.04. Sections 201.616(a) and (b), Transportation Code, are amended to read as follows:

(a) Not later than December 1 of each year, the department shall submit a report to the legislature that details:

(1) the expenditures made by the department in the preceding state fiscal year in connection with:

(A) the unified transportation program of the department;

(B) turnpike projects and toll roads of the department; and

(C) [the Trans-Texas Corridor;

[(D)] rail facilities described in Chapter 91; [and

[(E) non-highway facilities on the Trans-Texas Corridor if those expenditures are subject to Section 227.062(c);]

(2) the amount of bonds or other public securities issued for transportation projects; and

(3) the direction of money by the department to a regional mobility authority in this state.

(b) The report must break down information under Subsection (a)(1)(A) by program category and department district. The report must break down information under Subsections (a)(1)(B) and[,] (C)[, (D), and (E)] and Subsection (a)(3) by department district. The report must break down information under Subsection (a)(2) by department district and type of project.

SECTION 8.05. Section 202.112(a), Transportation Code, is amended to read as follows:

(a) The commission may purchase an option to acquire property for possible use in or in connection with a transportation facility[, including a facility as defined by Section 227.001,] before a final decision has been made as to whether the transportation facility will be located on that property.

SECTION 8.06. Section 222.003(e), Transportation Code, is amended to read as follows:

(e) The proceeds of bonds and other public securities issued under this section may not be used for any purpose other than any costs related to the bonds and other public securities and the purposes for which revenues are dedicated under Section 7-a, Article VIII, Texas Constitution. [The proceeds of bonds and other public securities issued under this section may not be used for the construction of a state highway or other facility on the Trans-Texas Corridor. For purposes of this section, the "Trans-Texas Corridor" means the statewide system of multimodal facilities under the jurisdiction of the department that is designated by the commission, notwithstanding the name given to that corridor.]

SECTION 8.07. Section 223.206(d), Transportation Code, is amended to read as follows:

(d) The department may not enter into a comprehensive development agreement with a private entity under this subchapter [or Section 227.023] that provides for the lease, license, or other use of rights-of-way or related property by the private entity for the purpose of constructing, operating, or maintaining an ancillary facility that is used for commercial purposes.

SECTION 8.08. Sections 223.208(c) and (f), Transportation Code, are amended to read as follows:

(c) The department may enter into a comprehensive development agreement under this subchapter [or under Section 227.023(c)] with a private participant only if the project is identified in the department's unified transportation program or is located on a transportation corridor identified in the statewide transportation plan.

(f) A comprehensive development agreement entered into under this subchapter [or Section 227.023(c)] and any obligations incurred, issued, or owed under the agreement does not constitute a state security under Chapter 1231, Government Code.

SECTION 8.09. Section 372.001, Transportation Code, as redesignated by S.B. 1969 and H.B. 3139, Acts of the 81st Legislature, Regular Session, 2009, is amended to read as follows:

Sec. 372.001. DEFINITIONS. In this chapter:

(1) "Toll project" means a toll project described by Section 201.001(b), regardless of whether the toll project:

(A) is a part of the state highway system; or

(B) is subject to the jurisdiction of the department.

(2) "Toll project entity" means an entity authorized by law to acquire, design, construct, finance, operate, and maintain a toll project, including:

(A) the department under Chapter [227 or] 228;

(B) a regional tollway authority under Chapter 366;

(C) a regional mobility authority under Chapter 370; or

(D) a county under Chapter 284.

SECTION 8.10. Section 371.001(2), Transportation Code, is amended to read as follows:

(2) "Toll project entity" means an entity authorized by law to acquire, design, construct, operate, and maintain a toll project, including:

(A) the department[, including under Chapter 227];

(B) a regional tollway authority under Chapter 366;

(C) a regional mobility authority under Chapter 370; or

(D) a county under Chapter 284.

SECTION 8.11. Section 545.353, Transportation Code, is amended by adding Subsection (h-2) to read as follows:

(h-2) Notwithstanding Section 545.352(b) and Subsection (d) of this section, the commission may establish a speed limit of 85 miles per hour on a part of the state highway system if:

(1) as a result of an engineering and traffic investigation the commission determines that 85 miles per hour is a reasonable and safe speed for that part of the highway system; and

(2) that part of the highway system is designed for travel at a speed of 85 miles per hour or more.

SECTION 8.12. Subchapter A, Chapter 621, Transportation Code, is amended by adding Section 621.008 to read as follows:

Sec. 621.008. COMMISSION'S AUTHORITY TO SET VEHICLE SIZE AND WEIGHT LIMITS. (a) The commission may authorize the operation of a vehicle that exceeds the height, length, or gross weight limitations of this chapter on a segment of a highway in the state highway system if supported by an engineering and traffic study that includes an analysis of the structural capacity of bridges and pavements, current and projected traffic patterns and volume, and potential effects on public safety.

(b) This section does not authorize the operation of a vehicle that exceeds a maximum axle weight authorized by this chapter or by Chapter 622 or 623.

SECTION 8.13. The following provisions of the Transportation Code are repealed:

(1) Section 201.618(e);

(2) Chapter 227;

(3) Section 284.0032;

(4) Section 366.305;

(5) Section 370.316; and

(6) Section 545.3531.

ARTICLE 9. MOTOR CARRIER OVERSIZE AND

OVERWEIGHT PERMITS

SECTION 9.01. Subchapter D, Chapter 623, Transportation Code, is amended by adding Section 623.0711 to read as follows:

Sec. 623.0711. PERMITS AUTHORIZED BY COMMISSION ORDER. (a) The commission by order may authorize the department to issue a permit to a motor carrier, as defined by Section 643.001, to transport multiple loads of the same commodity over a state highway if all of the loads are traveling from and to the same general locations.

(b) The commission may not authorize the issuance of a permit that would violate federal regulations on size and weight requirements or authorize the issuance of a permit for equipment that could reasonably be dismantled for transportation as separate loads.

(c) To be eligible for a permit under this section, the department must determine that the state will benefit from the issuance of this type of expedited permitting process.

(d) Before the commission may adopt an order under this section, the department must complete a route and engineering study that considers:

(1) the estimated number of loads to be transported by the motor carrier under the permit;

(2) the size and weight of the commodity;

(3) available routes that can accommodate the size and weight of the vehicle and load to be transported;

(4) the potential roadway damage caused by repeated use of the road by the permitted vehicle;

(5) any disruption caused by the movement of the permitted vehicle; and

(6) safety to the traveling public.

(e) The commission may impose on the motor carrier any condition regarding routing, time of travel, axle weight, and escort vehicles necessary to ensure safe operation and minimal damage to the roadway.

(f) A permit issued under this section may provide multiple routes to reach the destination to minimize damage to the roadways.

(g) The commission shall require the motor carrier to file a bond in an amount set by the commission, payable to the department and conditioned on the motor carrier paying to the department any damage that is sustained to a state highway because of the operation of a vehicle under a permit issued under this section.

(h) The fee for a permit under this section may not exceed $7,000.

(i) The director of the department or a person designated by the director may suspend a permit issued under this section or alter a designated route because of:

(1) a change in pavement conditions;

(2) a change in traffic conditions;

(3) a geometric change in roadway configuration;

(4) construction or maintenance activity; or

(5) emergency or incident management.

(j) Permits issued under this section are subject to the administrative sanctions of Subchapter N.

(k) In this section, "commission" means the Texas Transportation Commission.

SECTION 9.02. Section 623.071, Transportation Code, is amended by adding Subsection (h) to read as follows:

(h) On completion of a route and engineering study, a single trip permit that exceeds the length established by Subsection (c) may be issued by the department and used in conjunction with an annual permit issued under Subsection (c) if the department determines that the additional length can be transported safely.

ARTICLE 10. RAIL TRANSPORTATION DIVISION

SECTION 10.01. Section 91.001, Transportation Code, is amended by adding Subdivision (3-a) to read as follows:

(3-a) "Division" means the rail transportation division of the department.

SECTION 10.02. Subchapter A, Chapter 91, Transportation Code, is amended by adding Section 91.0041 to read as follows:

Sec. 91.0041. DUTIES OF RAIL TRANSPORTATION DIVISION. In addition to any other duty imposed on the division, the division shall:

(1) assure that rail transportation is an integral part of the department's transportation planning process;

(2) coordinate and oversee rail projects that are financed with money in the Texas rail relocation and improvement fund;

(3) develop and plan for improved passenger and freight rail facilities and services in this state; and

(4) coordinate the efforts of the department, the federal government, and private entities to continue the development of rail transportation facilities and services in this state.

ARTICLE 11. ELECTRONIC SIGNS

SECTION 11.01. Chapter 544, Transportation Code, is amended by adding Section 544.013 to read as follows:

Sec. 544.013. CHANGEABLE MESSAGE SIGN SYSTEM. (a) In this section, "changeable message sign" means a sign that conforms to the manual and specifications adopted under Section 544.001. The term includes a dynamic message sign.

(b) The Texas Department of Transportation shall actively manage a system of changeable message signs located on highways under the jurisdiction of that department to mitigate traffic congestion by providing current information to the traveling public, including information about traffic incidents, weather conditions, road construction, and alternative routes.

ARTICLE 12. EFFECTIVE DATE

SECTION 12.01. This Act takes effect on the 91st day after the last day of the legislative session.