81R29158 E

By: Isett, Pickett, Harper-Brown H.B. No. 300

Substitute the following for H.B. No. 300:

By: Pickett C.S.H.B. No. 300

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Texas Department of Transportation, including the governance of the department and the transfer of certain functions of the department to the Texas Department of Motor Vehicles and the office of the governor; providing penalties.

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

ARTICLE 1. GENERAL COMMISSION AND DEPARTMENT PROVISIONS

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

(a) The Texas Transportation Commission consists of five members, of whom:

(1) three are appointed by the governor with the advice and consent of the senate;

(2) one is appointed by the governor with the advice and consent of the senate, selected from a list of individuals provided by the speaker of the house of representatives; and

(3) one is appointed by the lieutenant governor.

(b) The members shall be appointed to reflect the diverse geographic regions and population groups of this state. One member appointed by the governor under Subsection (a)(1) must reside in a rural area.

(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.

(h) A person required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the department is not eligible for appointment [may not serve] as 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. Section 201.053(a), Transportation Code, is amended to read as follows:

(a) The governor [periodically] shall designate one commissioner as the chair of the commission, who shall serve as presiding officer of the commission.

SECTION 1.03. Section 201.056, Transportation Code, is amended to read as follows:

Sec. 201.056. COMPENSATION. A member of the commission is entitled to compensation as provided by the General Appropriations Act. [If compensation for members is not provided by that Act, each member is entitled to reimbursement for actual and necessary expenses incurred in performing functions as a member of the commission.]

SECTION 1.04. Section 201.057(a), Transportation Code, is amended to read as follows:

(a) It is a ground for removal from the commission if a commissioner:

(1) does not have at the time of taking office [appointment] or maintain during service on the commission the qualifications required by Section 201.051;

(2) violates a prohibition provided by Section 201.051;

(3) cannot discharge the commissioner's duties for a substantial part of the term for which the commissioner is appointed because of illness or disability; or

(4) is absent from more than half of the regularly scheduled commission meetings that the commissioner is eligible to attend during a calendar year, unless the absence is excused by majority vote of the commission.

SECTION 1.05. Section 201.058, Transportation Code, is amended to read as follows:

Sec. 201.058. INFORMATION ON QUALIFICATIONS AND CONDUCT. The department shall provide to the members of the commission, as often as necessary, information concerning the members' qualifications for office [under Subchapter B] and their responsibilities under applicable laws relating to standards of conduct for state officers.

SECTION 1.06. Section 201.105, Transportation Code, is amended by amending Subsections (a) and (b) and adding Subsections (h) and (i) to read as follows:

(a) The commission shall divide the state into [not more than 25] districts for the purpose of the performance of the department's duties.

(b) Except as provided in Subsection (h) [In determining a district's boundaries], the commission shall align the districts' boundaries along the boundaries of regional planning commissions created under Chapter 391, Local Government Code, and shall consider all costs and benefits, including highway activity in determining [and] the number of employees required for the proposed districts [district].

(h) In establishing district boundaries under Subsection (b), the commission may vary from the boundaries of a regional planning commission created under Chapter 391, Local Government Code, to the extent it determines necessary to avoid:

(1) significant adverse economic impact on local communities caused by the closing of one or more existing department offices;

(2) significant cost inefficiencies caused by the realignment of existing district boundaries; or

(3) significant disruptions to the existing workforce of one or more districts.

(i) If the commission varies from the boundaries of a regional planning commission as authorized by Subsection (h), the commission shall send a report explaining the variances to:

(1) the Legislative Budget Board;

(2) the governor;

(3) the chair of the House Transportation Committee;

(4) the chair of the Senate Transportation and Homeland Security Committee;

(5) the chair of the Senate Finance Committee; and

(6) the chair of the House Appropriations Committee.

SECTION 1.07. Subchapter C, Chapter 201, Transportation Code, is amended by adding Sections 201.117 and 201.118 to read as follows:

Sec. 201.117. 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. 201.118. 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 1.08. Sections 201.202(a) and (c), Transportation Code, are amended 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;

(3) public transportation; and

(4) rail transportation [motor vehicle titles and registration].

(c) A [In appointing a] person designated by the commission as the department's chief financial officer must report directly to the commission [to supervise a function previously performed by the former State Department of Highways and Public Transportation, Texas Department of Aviation, or Texas Turnpike Authority, preference shall be given to a person employed in a similar position in that former agency].

SECTION 1.09. 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 1.10. 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, each member of the commission, the director, and the department's chief financial officer shall certify in writing that the commission member, 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 those 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 members of the commission, 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 Chapter 205.

(c) The transportation legislative oversight committee shall recommend to the 82nd Legislature appropriate penalties for failure to submit the certifications required by Subsection (a). This subsection expires January 1, 2012.

Sec. 201.211. LEGISLATIVE LOBBYING. (a) In addition to the prohibition in Section 556.006, Government Code, a member of the commission or a department employee may not use money under the department's control or engage in an activity to influence the passage or defeat of legislation.

(b) A violation of Subsection (a) is grounds for dismissal of an employee.

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

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

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

Sec. 201.212. ETHICS AFFIRMATION AND HOTLINE. (a) A department employee shall annually affirm the employee's adherence 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. 201.213. 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.

SECTION 1.11. Section 201.301(a), Transportation Code, is amended to read as follows:

(a) The commission shall elect an executive director for the department. [The director must be a registered professional engineer in this state and experienced and skilled in transportation planning, development, construction, and maintenance.]

SECTION 1.12. 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 commission and 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 1.13. Subchapter H, Chapter 201, Transportation Code, is amended by adding Section 201.6041 to read as follows:

Sec. 201.6041. DELEGATION OF ENVIRONMENTAL REVIEW TO LOCAL TOLL PROJECT ENTITY. (a) In this section, "local toll project entity" means:

(1) a county under Chapter 284;

(2) a regional tollway authority under Chapter 366; or

(3) a regional mobility authority under Chapter 370.

(b) To the extent permitted by law, the department shall, on request by a local toll project entity, delegate to the entity all responsibility for obtaining environmental review required for a project to be developed and constructed by the entity. If authority is delegated under this section:

(1) the local toll project entity's environmental documents, environmental studies, and public involvement activities must comply with state procedures;

(2) the local toll project entity must provide the environmental documentation to the department; and

(3) the environmental documents must meet the approval of the United States Department of Transportation, Federal Highway Administration, if the project requires the approval of that agency.

SECTION 1.14. Section 201.802, Transportation Code, is amended to read as follows:

Sec. 201.802. PUBLIC ACCESS TO COMMISSION [AND TO DEPARTMENT PROGRAMS]. [(a)] The commission shall develop and implement policies that provide the public with a reasonable opportunity to appear before the commission and speak on any issue under the jurisdiction of the department [commission].

[(b) The director shall prepare and maintain a written plan that describes the manner in which a person who does not speak English or who has a physical, mental, or developmental disability is provided reasonable access to the department's programs.

[(c) The department shall comply with each applicable law of the United States or this state that relates to program or facility accessibility.]

SECTION 1.15. Subchapter K, Chapter 201, Transportation Code, is amended by adding Section 201.910 to read as follows:

Sec. 201.910. MEMORIAL MARKERS FOR CERTAIN PEACE OFFICERS AND SPECIAL INVESTIGATORS KILLED IN LINE OF DUTY. (a) The commission by rule shall allow the placement, along state highway right-of-way, of privately funded memorials honoring peace officers and special investigators who were killed in the line of duty and were not troopers of the Department of Public Safety.

(b) The rules adopted under Subsection (a) must be substantially identical to commission rules relating to the placement of privately funded memorials honoring Department of Public Safety troopers killed in the line of duty.

(c) In this section:

(1) "Peace officer" has the meaning assigned by Article 2.12, Code of Criminal Procedure.

(2) "Special investigator" has the meaning assigned by Article 2.122, Code of Criminal Procedure.

SECTION 1.16. Section 201.0545, Transportation Code, is repealed.

SECTION 1.17. (a) Subtitle A, Title 6, Transportation Code, is amended by adding Chapter 205 to read as follows:

CHAPTER 205. TRANSPORTATION LEGISLATIVE OVERSIGHT COMMITTEE

Sec. 205.001. DEFINITION. In this chapter, "committee" means the Transportation Legislative Oversight Committee.

Sec. 205.002. ESTABLISHMENT; COMPOSITION. (a) The Transportation Legislative Oversight Committee is established to provide objective research, analysis, and recommendations on the operation and needs of the state transportation system.

(b) The committee is composed of six members as follows:

(1) the chair of the Senate Committee on Transportation and Homeland Security;

(2) the chair of the House Committee on Transportation;

(3) two members of the senate appointed by the lieutenant governor; and

(4) two members of the house of representatives appointed by the speaker of the house of representatives.

(c) An appointed member of the committee serves at the pleasure of the appointing official.

Sec. 205.003. PRESIDING OFFICER; TERM. (a) The lieutenant governor and the speaker of the house of representatives shall appoint the presiding officer of the committee on an alternating basis.

(b) The presiding officer of the committee serves a two-year term that expires February 1 of each odd-numbered year.

Sec. 205.004. POWERS AND DUTIES. (a) The committee shall:

(1) monitor the department's planning, programming, and funding of the state transportation system;

(2) conduct an in-depth analysis of the state transportation system that includes:

(A) an assessment of the cost-effectiveness of the use of state, local, and private funds in the transportation system;

(B) an identification of critical problems in the transportation system, such as funding constraints; and

(C) a determination of the long-range needs of the transportation system;

(3) recommend to the legislature:

(A) strategies to solve the problems identified under Subdivision (2)(B); and

(B) policy priorities to address the long-range needs determined under Subdivision (2)(C); and

(4) advise and assist the legislature in developing plans, programs, and proposed legislation to improve the effectiveness of the state transportation system.

(b) 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.

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

Sec. 205.005. REVIEW OF RESEARCH PROGRAM. (a) The department shall present the department's entire research program to the committee for review and comment before adopting or implementing the program.

(b) The committee shall review and comment on the department's research program, including each of the individual research projects and activities. The review of a proposed research project must take into consideration the purpose of the project, the proposed start and ending dates for the project, and the cost of the project.

(c) The department shall provide to the committee quarterly updates and an annual summary on the progress of the department's research projects and activities.

(d) The committee may request the results of any of the department's research projects, including draft reports from the department or the contracted entities performing the research.

(e) A university transportation research program in this state may:

(1) perform transportation research projects requested by the committee; and

(2) initiate and propose transportation research projects to the committee.

(f) The committee may request assistance from a university transportation research program in this state in conducting transportation research and in reviewing, evaluating, and comparing elements of the state transportation system to the transportation systems in other states to set needed benchmarks.

Sec. 205.006. CONTRACT WITH CONSULTING FIRM. (a) The committee may contract with an outside management consulting firm that is independent of the department to make recommendations regarding an effective and efficient organizational structure for the department, such as recommending appropriate performance measurements and staffing levels for each major function of the department including comparisons to best practices, after review and analysis under Section 205.007.

(b) In performing its functions, the consulting firm shall coordinate with the Legislative Budget Board, the state auditor's office, and the department to minimize the duplication of efforts and to perform cost effectively and in a timely manner.

(c) The committee shall:

(1) oversee the implementation of the recommendations under this section with the goal of making the department more efficient, transparent, and accountable, including through reducing staff and streamlining processes; and

(2) assess the department's progress in implementing the recommendations under this section and report on the progress to the Senate Finance Committee and House Appropriations Committee for consideration in establishing the department's budget as part of the appropriations process.

Sec. 205.007. FUNCTIONS OF CONSULTING FIRM. The primary functions of a management consulting firm the committee contracts with under Section 205.006 include:

(1) evaluating the department's financial condition and business practices;

(2) evaluating the department's administrative practices and performance, including statewide transportation planning, the department's relationship with metropolitan planning organizations, as defined by Section 472.031, the performance of the department's district and central offices, and the need for standardization of the department's operations across the state;

(3) evaluating the current guidelines of metropolitan planning organizations and all other transportation entities within the state involved with project delivery or transportation policy by identifying duplicative practices and providing recommendations for better efficiency and transparency;

(4) identifying ways to streamline all processes and procedures of policy implementations of the department, including the environmental process;

(5) examining and evaluating the use and benefits of performance-based maintenance contracting by the department;

(6) examining and presenting recommendations on how to maximize the department's use of multimodal solutions;

(7) analyzing the department's compliance with applicable laws and legislative intent;

(8) examining the efficient use of the department's available funding, personnel, equipment, and office space;

(9) evaluating the establishment in statute of a state pavement quality goal of having 85 percent of state roads in good or better condition; and

(10) considering significantly expanding the use of the private sector for planning, design, and delivery of projects and a commitment to excellence in project and program management.

Sec. 205.008. MEETINGS. The committee shall meet at the call of the presiding officer.

Sec. 205.009. STAFF; AUTHORITY TO CONTRACT. The committee may hire staff or may contract with universities or other suitable entities to assist the committee in carrying out the committee's duties. Funding to support the operation of the committee shall be provided from funds appropriated to the department.

Sec. 205.010. REPORT. Not later than January 1 of each odd-numbered year, the committee shall submit to the legislature a report that contains the recommendations described by Section 205.004(a)(3).

(b) The speaker of the house of representatives and the lieutenant governor shall appoint members to the Transportation Legislative Oversight Committee under Chapter 205, Transportation Code, as added by this section, not later than January 1, 2010.

(c) Notwithstanding Section 205.003, Transportation Code, as added by this section, the lieutenant governor, not later than January 15, 2010, shall appoint a presiding officer for the Transportation Legislative Oversight Committee. The presiding officer appointed by the lieutenant governor under this section serves a one-year term that begins on February 1, 2010, and ends on February 1, 2011.

(d) On the effective date of this Act:

(1) all employees of the Texas Department of Transportation who primarily perform duties related to the department's government and public affairs research section become employees of the Transportation Legislative Oversight Committee under Chapter 205, Transportation Code, as added by this section; and

(2) all funds appropriated by the legislature to the Texas Department of Transportation for purposes related to the department's government and public affairs research section are transferred to the Transportation Legislative Oversight Committee under Chapter 205, Transportation Code, as added by this section.

SECTION 1.18. Subchapter Z, Chapter 311, Transportation Code, is amended by adding Section 311.905 to read as follows:

Sec. 311.905. NOTICE OF TRANSPORTATION USER'S FEE BY MUNICIPALITY. (a) A municipality that imposes a fee on the user of a benefited property equal to the prorated annual cost of the transportation system owned by the municipality that can reasonably be attributed to the benefited property must provide notice to the department and the user of the fee.

(b) The notice to the department shall be given to the executive director by any commercially acceptable form of business communication. The notice to the user required under Subsection (a) is adequate if the fee amount is stated on monthly billing statements to the user for metered utility service provided by the municipality to the user.

ARTICLE 2. TRANSPORTATION PLANNING AND PROJECT DEVELOPMENT PROCESS

SECTION 2.01. Section 201.601, Transportation Code, is amended to read as follows:

Sec. 201.601. STATEWIDE TRANSPORTATION PROGRAM AND BUDGET [PLAN]. [(a)] The department shall develop a statewide transportation program and budget under Subchapter H-1 [plan 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].

[(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 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) 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 2.02. Chapter 201, Transportation Code, is amended by adding Subchapter H-1 to read as follows:

SUBCHAPTER H-1. STATEWIDE TRANSPORTATION PLANNING AND FUNDING

ALLOCATION

Sec. 201.651. DEFINITIONS. In this subchapter:

(1) "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, the department district that serves the area.

(2) "Project cost" means the total cost of a transportation project, including all costs associated with:

(A) planning;

(B) design;

(C) environmental assessment;

(D) right-of-way acquisition;

(E) construction;

(F) operations;

(G) maintenance;

(H) overruns; and

(I) change orders.

(3) "Region" means the area for which a planning organization develops plans and receives funds under this subchapter.

(4) "Rural planning organization" means a planning organization created under Section 201.653.

(5) "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.

(6) "Transportation project" means:

(A) the planning of, right-of-way acquisition for, expansion of, improvement of, addition to, routine maintenance of, contracted routine maintenance of, or contract maintenance of a:

(i) bridge;

(ii) highway;

(iii) toll road or toll road system; or

(iv) railroad;

(B) a project that enhances the safety of a roadway to the traveling public;

(C) an air quality improvement initiative;

(D) a transportation enhancement activity under 23 U.S.C. Section 133; or

(E) mass transportation.

Sec. 201.652. 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. 201.653. RURAL PLANNING ORGANIZATIONS. (a) To carry out the transportation planning process required by this subchapter, a rural planning organization may be created to serve an area that is located in the boundaries of a council of government and outside the boundaries of a metropolitan planning organization if the governing bodies of the units of local government in which at least 75 percent of the population of the area resides each adopt a resolution agreeing to the creation of the organization.

(b) A rural planning organization is governed by a board of directors composed of local elected officials and the district engineer of the department district in which the area is located.

(c) For a rural planning organization to be eligible to receive funds from this state for transportation projects under Section 201.668:

(1) at least 75 percent of the organization's board members must be elected officials who are elected within the boundaries of the rural planning organization; and

(2) only elected officials may be voting members of the organization's board.

(d) A rural planning organization may be dissolved by official action of its board.

(e) As soon as practicable after a rural planning organization is created or dissolved, the organization shall send notice of its creation or dissolution to the commission.

(f) The department may use money in the state highway fund to fund the operations of a rural planning organization, subject to Section 201.672(c).

(g) A rural planning organization shall develop transportation plans and programs for its service area in accordance with this subchapter.

(h) A rural planning organization may provide to the commission recommendations concerning the selection of transportation projects, systems, or programs to be undertaken in the boundaries of the rural planning organization.

(i) In this section, "elected official" means the presiding officer or a member of the governing body of a municipality, a county judge, a county commissioner, a state representative, or a state senator.

(j) If the rural planning organization does not provide recommendations under Subsection (h), the department shall seek input from the rural planning organization, municipal and county officials, and transportation officials to determine the transportation projects, systems, or programs to be undertaken in the boundaries of the rural planning organization.

Sec. 201.654. 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.

Sec. 201.655. ALLOCATION AND DEPOSIT OF FUNDING. (a) The commission shall use the cash flow forecast under Section 201.654 to allocate funding to the planning organizations in accordance with Section 201.668.

(b) The funds shall be deposited into subaccounts for each region in the state highway fund. The balance of the subaccount shall be carried forward from year to year for the benefit of the region.

Sec. 201.656. PLANNING ORGANIZATION 10-YEAR PLAN. (a) Each planning organization shall develop a 10-year transportation plan for the use of the funding allocated to the region.

(b) The first four years of the plan shall be developed to meet the transportation improvement plan requirements of 23 U.S.C. Section 135.

(c) The department shall compile the planning organizations' project selections to develop the statewide transportation plan in accordance with 23 U.S.C. Section 135.

Sec. 201.657. COORDINATION BETWEEN PLANNING ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. Planning organizations shall collaborate with one another and with the department to develop mutually acceptable assumptions for the purposes of long-range federal and state funding forecasts and use those assumptions to guide long-term planning.

Sec. 201.658. PLANNING ORGANIZATION PROJECT SELECTION AND PRIORITIZATION. (a) Each metropolitan planning organization and rural planning organization shall, for the area in its boundaries, select projects and order them in priority.

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

(1) select projects and order them in priority with input from municipal and county officials and transportation officials; and

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

(c) A metropolitan planning organization or rural planning organization may delegate authority to select any category of projects and order them in priority to the applicable department district.

Sec. 201.659. 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. 201.660. PLANNING ORGANIZATION LONG-RANGE PLAN. (a) A planning organization may also prepare and update periodically a long-range transportation plan for its region.

(b) The first 10 years of the long-range plan shall be identical to the plan developed under Section 201.656.

(c) Before approving a long-range transportation plan, a 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 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 required by the commission.

Sec. 201.661. 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. 201.662. 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 201.651(5).

Sec. 201.663. 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 201.654. Adjustments to the plan may not be made more than semiannually, unless there are substantial increases or decreases in available funding.

Sec. 201.664. EVALUATION COMPONENT OF PLAN. A plan under this subchapter shall 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. 201.665. DEPARTMENT'S STATEWIDE TRANSPORTATION PROGRAM AND BUDGET. (a) The department shall use the planning organizations' project lists to create the statewide transportation program and budget. The statewide transportation program and budget shall include at least:

(1) the department's operating budget;

(2) the official cash flow forecast under Section 201.654;

(3) the regions' allocations of funds;

(4) the projects selected by the planning organization under Section 201.658; and

(5) the work plan required by Section 201.674.

(b) The statewide transportation program and budget shall be complete and adopted not later than June 30 of each even-numbered year. The commission shall adopt rules to create a process for planning organizations to amend the plan from July 1 of each even-numbered year until August 31 of the following year. Amendments to the plan may only reorder projects identified in the same region subject to Section 201.663.

Sec. 201.666. LENDING FUNDS BETWEEN PLANNING ORGANIZATIONS. (a) The commission may adopt rules to allow a planning organization to loan funds to another planning organization at the lending organization's discretion. Funds may be loaned under this section only to avoid the lapsing of federal appropriations authority.

(b) The rules must allow the lending planning organization to have a senior position with regard to any future allocated funds of the borrowing planning organization.

(c) The lending planning organization may not charge interest on funds borrowed by another planning organization that exceed the current bond rate of outstanding state highway fund bonds or in the absence of outstanding debt the prevailing market rate for comparable municipal debt. The commission shall notify all districts of that rate.

(d) A lending planning organization may not be penalized in its performance measures if it successfully negotiates a loan with another planning organization.

(e) The commission may be involved in the coordination of a loan of funds under this section.

Sec. 201.667. 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. 201.668. 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) All funds received by the department for highways, including toll roads and toll road systems, that may be allocated in this state's or the department's discretion shall be allocated by a formula to each planning organization that is based on performance measures and includes at least the following criteria:

(1) centerline miles;

(2) level of congestion;

(3) percentage of population below federal poverty level;

(4) population;

(5) safety; and

(6) vehicle miles traveled.

(c) The commission shall allocate to the planning organizations funding for the project costs of all transportation projects. The commission shall adopt various formulas for the different types of transportation projects, including funding for statewide connectivity projects. The commission shall adopt rules for all transportation formulas.

Sec. 201.669. USE OF ALLOCATED FUNDS. The funds allocated to a planning organization under Section 201.668 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;

(3) repay money borrowed from another region; or

(4) fund a planning organization's operations under Section 201.672.

Sec. 201.670. 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 B, Chapter 228.

(b) Funds associated with toll projects under Chapter 228 are not considered revenue allocated by a formula under Section 201.668.

Sec. 201.671. 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. 201.672. 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. The amount that may be allocated to pay for the operations of the planning organization may not exceed the lesser of $10 million or 10 percent of the planning organization's total funds.

(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. The amount that may be allocated to pay for the operations of the planning organization may not exceed the lesser of $3 million or 10 percent of the planning organization's total funds.

(c) A rural planning organization may use the allocated funds to pay for the operations costs of the planning organization. The amount that may be allocated to pay for the operations of the planning organization may not exceed the lesser of $1 million or 10 percent of the planning organization's total allocated funds.

Sec. 201.673. COMMISSION EMERGENCY AND ECONOMIC DEVELOPMENT FUNDS. (a) Notwithstanding Section 201.655(b), the commission may annually set aside an amount of funds not to exceed the lesser of 10 percent of the total funds allocated to all districts or $250 million for the purpose of addressing emergencies or economic development opportunities that require transportation infrastructure. The funds may be carried forward from year to year but may not accumulate to more than $1 billion.

(b) If the commission elects to set aside an amount of funds under Subsection (a), the total amount of funds available for allocation shall be reduced by the amount set aside before the allocation of funds by the formula.

(c) The 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.

(d) The commission may use funds set aside under this section for emergency and economic development opportunities that require transportation infrastructure in the same manner a planning organization may use money allocated under Section 201.669.

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

(f) The funds set aside under Subsection (a) may be used to pay cost overruns and change orders only for projects selected by the commission under this section.

(g) The commission may use the funds set aside under Subsection (a) to make payments for projects funded in accordance with Section 222.104 or to provide toll equity only if the commission selects the projects using a competitive project selection process.

Sec. 201.674. DEPARTMENT 10-YEAR BUSINESS WORK PLAN. On completion of the 10-year transportation plan in Section 201.656, the department shall use the prioritized lists of projects to develop a proposed 10-year business work plan. The work plan shall be adopted not later than August 31 of each even-numbered year and include:

(1) a list of projects for which planning, permitting, design, right-of-way acquisition, or construction work will be conducted during the period;

(2) the state fiscal quarter in which key milestones for each project will be reached, including environmental clearance, completion of final engineering plans, completion of right-of-way acquisition, letting to contract, and completion of construction; and

(3) the funding allocated or estimated in each state fiscal year for each category of work for each project.

Sec. 201.675. WORK PROGRAM. (a) Each department district shall develop a consistently formatted work program based on the department 10-year business work plan covering a period of four years that contains all projects that the district proposes to implement during that period.

(b) The department shall use the work program to:

(1) monitor the performance of the district; and

(2) evaluate the performance of district employees.

(c) The department shall publish the work program in appropriate media and on the department's Internet website.

Sec. 201.676. 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. 201.677. PAVEMENT MANAGEMENT INFORMATION SYSTEM. (a) The department shall measure the condition of the pavement for each highway under the jurisdiction of the department.

(b) The department shall establish a system that makes the information collected under Subsection (a) available to the planning organizations for use in determining transportation projects.

Sec. 201.678. FINALIZED BIENNIAL PROJECT PLAN. In addition to the plan required by Section 201.674 and other provisions of this chapter, 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. The plan must include:

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

(2) a consultant acquisition plan with a schedule for contract selections;

(3) a right-of-way acquisition plan; and

(4) a letting plan.

Sec. 201.679. PERFORMANCE MEASURES FOR BIENNIAL PROJECT PLAN. (a) The department shall develop a set of performance measures for the plan under Section 201.678 intended to measure:

(1) the execution of the work program;

(2) the efficiency and cost-effectiveness of its business practices;

(3) the preservation of the system investment;

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

(5) safety initiatives; and

(6) utilization of minority, disadvantaged, and small businesses.

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

(1) the percentage of projects for which environmental clearance is obtained on or before the planned date;

(2) the number of engineering contracts or work orders executed in contrast with the number planned;

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

(4) the number of right-of-way parcels acquired and the number scheduled to be acquired;

(5) the percentage of projects for which right-of-way acquisition is completed on or before the planned date;

(6) the percentage of parcels acquired through negotiation;

(7) the percentage of negotiated parcels acquired for an amount that does not exceed 120 percent of the initial department offer;

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

(9) the number of construction contracts entered into in contrast with the number planned;

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

(11) the total amount spent for construction contracts as a percentage of the original estimated amount;

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

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

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

(15) the percentage of bridge structures on the state highway system that have a rating of good or excellent;

(16) the percentage of bridge structures on the state highway system that have a posted weight limitation;

(17) the number of bridge repair contracts let in contrast with the number planned;

(18) the number of bridge replacement contracts let in contrast with the number planned;

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

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

(21) the number of lane miles of capacity improvement projects let in contrast with the number planned;

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

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

(24) the amount spent in connection with contracts with minority business enterprises as a percentage of the amount spent on all contracts;

(25) the number of construction contracts let in contrast with the number let in previous state fiscal years;

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

(27) the number of vehicle miles traveled in contrast with previous state fiscal years; and

(28) the number of lane miles added as a percentage of the number of previously existing lane miles.

(c) The department shall consult with the Transportation Legislative Oversight Committee in developing the performance measures under Chapter 205. This subsection expires August 31, 2013.

Sec. 201.680. PERFORMANCE REVIEW. Not later than December 1 of each odd-numbered year, the commission shall review the performance of the department's duties under Section 201.678 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 201.679(a), statewide and by department district, and a status report on each major project under development.

SECTION 2.03. Subchapter J, Chapter 201, Transportation Code, is amended by adding Sections 201.807, 201.808, and 201.809 to read as follows:

Sec. 201.807. PROJECT INFORMATION REPORTING SYSTEM. (a) The department shall establish a project information reporting system that makes available in a central location on the department's Internet website easily accessible and searchable information to enable the tracking of project development and the expenditure of funds in the department's statewide transportation program and budget. The project information reporting system shall contain information about:

(1) each project, 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 to contact each person on that list; and

(F) the results of the annual review required under Subsection (e);

(2) each construction work zone for a project that has a construction phase timeline that exceeds one month 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 and actual traffic delay resulting from each lane closure;

(3) road maintenance projects, including:

(A) the criteria for designating a project as a road maintenance project; and

(B) the condition of each road before the road maintenance project; and

(4) the department's funds, including each source for the department's funds and each expenditure made by the department reported by each:

(A) department district;

(B) program funding category; and

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

(b) The department shall develop an interactive web-based system for the tracking of planning organization allocations and projects under Subchapter H-1. The planning organizations shall be granted access to the system through a secure site to input information regarding projects and the associated project costs. The system shall provide the planning organization information regarding the organization's allocation of funding for the region and the federal and state requirements for each source of funding.

(c) In developing the project information reporting system, the department shall collaborate with:

(1) the legislature;

(2) planning organizations, as defined by Section 201.651; and

(3) members of the public.

(d) 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.

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

(f) The department shall continuously update the information contained in the project information reporting system.

Sec. 201.808. TRANSPORTATION EXPENDITURE PRIORITIES. (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.

(b) The department shall establish a transportation expenditure reporting system that makes available in a central location on the department's Internet website easily accessible and searchable information regarding the priorities of transportation expenditures for the identified transportation projects.

(c) The department shall include in the transportation expenditure reporting system:

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

(2) information about the condition of the pavement for each highway under the jurisdiction of the department, 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;

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

(A) bridges that are structurally deficient or functionally obsolete; and

(B) bridge deterioration scores;

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

(A) the locations of the worst traffic delays;

(B) the variable travel time for major streets and highways in this state; and

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

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

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

(e) Each department district or planning organization, as that term is defined by Section 201.651, shall enter information into the transportation expenditure reporting system, including information about each project and the priority of each project.

(f) The transportation expenditure reporting system shall allow a person to compare information produced by that system to information produced by the project information reporting system.

Sec. 201.809. DEPARTMENT INFORMATION CONSOLIDATION. 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.

SECTION 2.04. Section 222.034(b), Transportation Code, is amended to read as follows:

(b) The commission may vary from the distribution procedure provided by Subsection (a) if it issues a ruling or minute order identifying the variance and providing a particular justification for the variance. If the commission intends to vary from the distribution procedure, it must allocate the funding in accordance with a formula adopted under Section 201.668.

SECTION 2.05. Section 222.105, Transportation Code, is amended to read as follows:

Sec. 222.105. PURPOSES. The purposes of Sections 222.106 and 222.107 are to:

(1) promote public safety;

(2) facilitate the improvement, development, or redevelopment of property;

(3) facilitate the movement of traffic; and

(4) enhance a local entity's ability to sponsor a transportation project authorized under Section 222.104.

SECTION 2.06. Section 222.106, Transportation Code, is amended by amending Subsections (b), (c), (g), (h), (i), (j), (k), and (l) and adding Subsections (i-1) and (i-2) to read as follows:

(b) This section applies only to a municipality in which a transportation project is to be developed [the governing body of which intends to enter into an agreement with the department] under Section 222.104.

(c) If the governing body determines an area to be unproductive and underdeveloped and that action under this section will further the purposes stated in Section 222.105, the governing body of the municipality by ordinance may designate a contiguous geographic area in the jurisdiction of the municipality to be a transportation reinvestment zone to promote a transportation project [described by Section 222.104 that cultivates development or redevelopment of the area].

(g) The ordinance designating an area as a transportation reinvestment zone must:

(1) describe the boundaries of the zone with sufficient definiteness to identify with ordinary and reasonable certainty the territory included in the zone;

(2) provide that the zone takes effect immediately on passage of the ordinance;

(3) assign a name to the zone for identification, with the first zone designated by a municipality designated as "Transportation Reinvestment Zone Number One, (City or Town, as applicable) of (name of municipality)," and subsequently designated zones assigned names in the same form, numbered consecutively in the order of their designation;

(4) designate the base year for purposes of establishing the tax increment base of the municipality;

(5) establish an ad valorem tax increment account for the zone; and

(6) [(5)] contain findings that promotion of the transportation project will cultivate the improvement, development, or redevelopment of the zone.

(h) From taxes collected on property in a zone, the municipality shall pay into the tax increment account for the zone [an amount equal to] the tax increment produced by the municipality, less any amount allocated under previous agreements, including agreements under Chapter 380, Local Government Code, or Chapter 311, Tax Code.

(i) All or the portion specified by the municipality of the money deposited to a tax increment account must be used to fund the transportation project for which the zone was designated, as well as aesthetic improvements within the zone. Any remaining money deposited to the tax increment account may be used for other purposes as determined by the municipality [Money deposited to a tax increment account must be used to fund projects authorized under Section 222.104, including the repayment of amounts owed under an agreement entered into under that section].

(i-1) The governing body of a municipality may contract with a public or private entity to develop, redevelop, or improve a transportation project in a transportation reinvestment zone and may pledge and assign all or a specified amount of money in the tax increment account to that entity. After a pledge or assignment is made, if the entity that received the pledge or assignment has itself pledged or assigned that amount to secure bonds or other obligations issued to obtain funding for the transportation project, the governing body of the municipality may not rescind its pledge or assignment until the bonds or other obligations secured by the pledge or assignment have been paid or discharged.

(i-2) To accommodate changes in the limits of the project for which a reinvestment zone was designated, the boundaries of a zone may be amended at any time, except that property may not be removed or excluded from a designated zone if any part of the tax increment account has been assigned or pledged directly by the municipality or through another entity to secure bonds or other obligations issued to obtain funding of the project, and property may not be added to a designated zone unless the governing body of the municipality complies with Subsections (e) and (g).

(j) Except as provided by Subsections (i-1) and [Subsection] (k), a transportation reinvestment zone terminates on December 31 of the year in which the municipality completes [complies with] a contractual requirement, if any, that included the pledge or assignment of all or a portion of money deposited to a tax increment account or the repayment of money owed under an [the] agreement for development, redevelopment, or improvement of the project for [under Section 222.104 in connection with] which the zone was designated.

(k) A transportation reinvestment zone terminates on December 31 of the 10th year after the year the zone was designated, if before that date the municipality has not entered into a contract described in Subsection (i-1) or otherwise not used the zone for the purpose for which it was designated.

(l) Any surplus remaining in a tax increment account on termination of a zone may be used for other purposes as determined by [transportation projects of] the municipality [in or outside of the zone].

SECTION 2.07. The heading to Section 222.107, Transportation Code, is amended to read as follows:

Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES[; TAX ABATEMENTS; ROAD UTILITY DISTRICTS].

SECTION 2.08. Section 222.107, Transportation Code, is amended by amending Subsections (b), (c), (e), (f), (h), (i), (k), and (l) and adding Subsections (h-1) and (k-1) to read as follows:

(b) This section applies only to a county in which a transportation project is to be developed [the commissioners court of which intends to enter into a pass-through toll agreement with the department] under Section 222.104.

(c) The commissioners court of the county, after determining that an area is unproductive and underdeveloped and that action under this section would further the purposes described by Section 222.105, by order or resolution may designate a contiguous geographic area in the jurisdiction of the county to be a transportation reinvestment zone to promote a transportation project [described by Section 222.104 that cultivates development or redevelopment of the area] and for the purpose of abating ad valorem taxes or granting other relief from taxes imposed by the county on real property located in the zone.

(e) Not later than the 30th day before the date the commissioners court proposes to designate an area as a transportation reinvestment zone under this section, the commissioners court must hold a public hearing on the creation of the zone, its benefits to the county and to property in the proposed zone, and the abatement of ad valorem taxes or the grant of other relief from ad valorem taxes imposed by the county on real property located in the zone. At the hearing an interested person may speak for or against the designation of the zone, its boundaries, or the abatement of or the relief from county taxes on real property in the zone. Not later than the seventh day before the date of the hearing, notice of the hearing and the intent to create a zone must be published in a newspaper having general circulation in the county.

(f) The order or resolution designating an area as a transportation reinvestment zone must:

(1) describe the boundaries of the zone with sufficient definiteness to identify with ordinary and reasonable certainty the territory included in the zone;

(2) provide that the zone takes effect immediately on adoption of the order or resolution; [and]

(3) assign a name to the zone for identification, with the first zone designated by a county designated as "Transportation Reinvestment Zone Number One, County of (name of county)," and subsequently designated zones assigned names in the same form numbered consecutively in the order of their designation; and

(4) designate the base year for purposes of establishing the tax increment base of the county.

(h) The commissioners court by order or resolution may enter into an agreement with the owner of any real property located in the transportation reinvestment zone to abate all or a portion of the ad valorem taxes or to grant other relief from the taxes imposed by the county on the owner's property in an amount not to exceed the amount calculated under Subsection (a)(1) for that year. All abatements or other relief granted by the commissioners court in a transportation reinvestment zone must be equal in rate. In the alternative, the commissioners court by order or resolution may elect to abate a portion of the ad valorem taxes or otherwise grant relief from the taxes imposed by the county on all real property located in the zone. In any ad valorem tax year, the total amount of the taxes abated or the total amount of relief granted under this section may not exceed the amount calculated under Subsection (a)(1) for that year, less any amounts allocated under previous agreements, including agreements under Chapter 381, Local Government Code, or Chapter 312, Tax Code.

(h-1) To further the development of the transportation project for which the transportation reinvestment zone was designated, a county may assess all or part of the cost of the transportation project against property within the zone. The assessment against each property in the zone may be levied and payable in installments in the same manner as provided by Sections 372.016-372.018, Local Government Code, provided that the installments do not exceed the total amount of the tax abatement or other relief granted under Subsection (h). The county may elect to adopt and apply the provisions of Sections 372.015-372.020 and 372.023, Local Government Code, to the assessment of costs and Sections 372.024-372.030, Local Government Code, to the issuance of bonds by the county to pay the cost of a transportation project. The commissioners court of the county may contract with a public or private entity to develop, redevelop, or improve a transportation project in the transportation reinvestment zone, including aesthetic improvements, and may pledge and assign to that entity all or a specified amount of the revenue the county receives from installment payments of the assessments for the payment of the costs of that transportation project. After a pledge or assignment is made, if the entity that received the pledge or assignment has itself pledged or assigned that amount to secure bonds or other obligations issued to obtain funding for the transportation project, the commissioners court of the county may not rescind its pledge or assignment until the bonds or other obligations secured by the pledge or assignment have been paid or discharged. Any amount received from installment payments of the assessments not pledged or assigned in connection with the transportation project may be used for other purposes associated with the transportation project or in the zone.

(i) In the alternative, to [To] assist the county in developing a transportation project [authorized under Section 222.104], if authorized by the commission under Chapter 441, a road utility district may be formed under that chapter that has the same boundaries as a transportation reinvestment zone created under this section.

(k) A road utility district formed as provided by Subsection (i) may enter into an agreement [with the county to assume the obligation, if any, of the county] to fund development of a project [under Section 222.104] or to repay funds owed to the department [under Section 222.104]. Any amount paid for this purpose is considered to be an operating expense of the district. Any taxes collected by the district that are not paid for this purpose may be used for any district purpose.

(k-1) To accommodate changes in the limits of the project for which a reinvestment zone was designated, the boundaries of a zone may be amended at any time, except that property may not be removed or excluded from a designated zone if any part of the assessment has been assigned or pledged directly by the county or through another entity to secure bonds or other obligations issued to obtain funding of the project, and property may not be added to a designated zone unless the governing body of the municipality complies with Subsections (e) and (f).

(l) Except as provided by Subsection (m), a tax abatement agreement entered into under Subsection (h), or an order or resolution on the abatement of taxes or the grant of relief from taxes under that subsection, terminates on December 31 of the year in which the county completes any contractual requirement that included the pledge or assignment of assessments [of money] collected under this section.

SECTION 2.09. Subchapter E, Chapter 222, Transportation Code, is amended by adding Sections 222.108 and 222.109 to read as follows:

Sec. 222.108. TRANSPORTATION REINVESTMENT ZONES FOR OTHER TRANSPORTATION PROJECTS. (a) Notwithstanding the requirement in Sections 222.106(b) and 222.107(b) that a transportation reinvestment zone be established in connection with a project under Section 222.104, a municipality or county may establish a transportation reinvestment zone for any transportation project. If all or part of the transportation project is subject to oversight by the department, at the option of the governing body of the municipality or county, the department shall delegate full responsibility for the development, design, letting of bids, and construction of the project, including project oversight and inspection, to the municipality or county provided that the commission or department may take any action that in its reasonable judgment is necessary to comply with any federal requirement to enable this state to receive federal-aid highway funds.

(b) A transportation project developed under Subsection (a) that is on the state highway system must comply with state design criteria unless the department grants an exception to the municipality or county.

(c) In this section, "transportation project" has the meaning assigned by Section 370.003.

Sec. 222.109. REDUCTION PROHIBITED. (a) A municipality or county may not be penalized with a reduction in traditional transportation funding because of the designation and use of a transportation reinvestment zone under this chapter. Any funding from the department identified for a project before the date that a transportation reinvestment zone is designated may not be reduced because the transportation reinvestment zone is designated in connection with that project.

(b) The department may not reduce any allocation of traditional transportation funding to any of its districts because a district contains a municipality or county that contains a transportation reinvestment zone designated under this chapter.

SECTION 2.10. (a) Section 223.041, Transportation Code, is amended by adding Subsections (c), (d), (e), and (f) to read as follows:

(c) Of the positions paid out of funds appropriated to the department for the planning, design, and management of transportation projects in the General Appropriations Act (Strategy A.1.1., or its successor), the department may fill only one of every five positions until staffing levels are reduced by 40 percent from the level existing as of August 31, 2009, or to a level not to exceed 2,500 positions, with commensurate reductions in associated administrative costs.

(d) The department shall report to the Legislative Budget Board not later than September 1 of each year on the department's progress in achieving the goal set by Subsection (c).

(e) The Legislative Budget Board may modify the requirements of Subsection (c) if, after a study by the State Council on Competitive Government, the board finds that it is not possible for the department to obtain services from the private sector on a cost-effective basis. A study conducted under this section must:

(1) analyze the full costs of the department's total plan/design/manage function, with indirect costs allocated in proportion to chargeable salaries in a manner comparable to private providers;

(2) analyze the department's historic costs of procuring services from private sector providers, including the costs of comprehensive project delivery services;

(3) review and analyze the costs that other public entities have for procuring project delivery and engineering services from private sector providers for large-scale construction projects; and

(4) review and make recommendations regarding engineering management practices used by other public entities that could improve the efficiency of the department's project delivery and engineering management system.

(f) If the Legislative Budget Board makes a request for a study under Subsection (e), the costs of the study shall be paid by the department through interagency contract. The study shall be managed by the State Council on Competitive Government but may be performed by an independent contractor.

SECTION 2.11. Section 222.053, Transportation Code, is amended by amending Subsection (b) and adding Subsection (i) to read as follows:

(b) Except as provided by Subsections [Subsection] (c) and (i), the commission may require, request, or accept from a political subdivision matching or other local funds, rights-of-way, utility adjustments, additional participation, planning, documents, or any other local incentives to make the most efficient use of its highway funding.

(i) The commission may waive, from a political subdivision, matching or other local funds, rights-of-way, utility adjustments, additional participation, planning, documents, or any other local incentives for a designated Texas Highway Trunk System project located in:

(1) a county with a population of less than 5,000; or

(2) a county with a population of 5,000 or more but less than 15,000 if the project is part of a high priority corridor on the national highway system identified under Section 1105 of the Intermodal Surface Transportation Efficiency Act of 1991 (Pub. L. No. 102-240) or other federal legislation.

SECTION 2.12. (a) Subchapter D, Chapter 472, Transportation Code, is amended by adding Sections 472.0311 through 472.0316 and 472.035 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) A metropolitan planning organization must be designated or redesignated in accordance with, and its boundaries determined by, 23 U.S.C. Section 134.

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

Sec. 472.0313. POLICY BOARD OFFICERS. (a) Each policy board shall designate, at a minimum, a presiding officer, an assistant presiding officer, and a secretary.

(b) The policy board shall select from among its members the presiding officer and assistant presiding officer.

(c) The secretary of the policy board shall prepare meeting minutes and maintain board records. The secretary may be a member of the policy board, an employee of the metropolitan planning organization, or any other individual.

Sec. 472.0314. OPEN MEETINGS. A policy board is subject to Chapter 551, Government Code.

Sec. 472.0315. POLICY BOARD MEMBERSHIP AND VOTING REQUIREMENTS; ELIGIBILITY FOR STATE ALLOCATION OF FUNDING. (a) To be eligible to receive funds from this state for transportation projects under Section 201.668:

(1) at least 75 percent of a metropolitan planning organization's policy board members must be elected officials who are elected in the boundaries of the metropolitan planning organization; and

(2) only elected officials may be voting members of the organization's policy board.

(b) A metropolitan planning organization that is not eligible under Subsection (a) may redesignate the board so as to become eligible to receive an allocation of funds under Section 201.668.

(c) In this section, "elected official" means the presiding officer or a member of the governing body of a municipality, a county judge, a county commissioner, a state representative, or a state senator.

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 that are not under the jurisdiction of a municipality or county represented on the metropolitan planning organization, 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. 472.035. POWERS, DUTIES, AND RESPONSIBILITIES. (a) The powers, duties, and responsibilities of a metropolitan planning organization are those specified in this subchapter or incorporated in an interlocal agreement entered into to implement this subchapter.

(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.

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 472.042;

(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.

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. 472.042. LONG-RANGE TRANSPORTATION PLAN. Each metropolitan planning organization shall develop a long-range transportation plan that addresses at least a 20-year period. The plan must include both long-range and short-range strategies and comply with all other state and federal requirements.

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 metropolitan planning organization is not required to designate officers in accordance with Section 472.0313, Transportation Code, as added by this section, and 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 2.13. 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 [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.]

ARTICLE 2A. INSPECTOR GENERAL

SECTION 2A.01. Chapter 201, Transportation Code, is amended by adding Subchapter F-1 to read as follows:

SUBCHAPTER F-1. INSPECTOR GENERAL

Sec. 201.451. INSPECTOR GENERAL. (a) The commission shall appoint an inspector general who reports to the commission.

(b) The inspector general shall:

(1) audit the department's financial condition and the efficiency of its business practices;

(2) evaluate the efficiency of the department's administrative practices and performance, including business plan performance measures, relationships with metropolitan planning organizations, performance of department districts and offices, and the need for standardization;

(3) identify the need and opportunities for reductions in staff and the need for a better or differently skilled workforce;

(4) study the implementation of and improvements to a commitment-based budget or business plan based on outcomes;

(5) identify ways to streamline the environmental approval process;

(6) evaluate compliance with applicable laws and legislative intent; and

(7) evaluate the efficient use of available funding, personnel, equipment, and office space.

(c) Notwithstanding Subsection (a), the Transportation Legislative Oversight Committee under Chapter 205 shall appoint the inspector general under this section. If appointed under this subsection, the inspector general is subject to removal for good cause by the commission. If the supreme court of this state determines that an appointment under this subsection violates Section 1, Article II, or Section 12, Article IV, Texas Constitution, the commission shall appoint the inspector general from a list provided by the Transportation Legislative Oversight Committee. This subsection expires August 31, 2013.

Sec. 201.452. COOPERATION AND COORDINATION WITH STATE AUDITOR. (a) An inspector general's review does not take precedence over the state auditor's review.

(b) The inspector general may meet with the state auditor's office to coordinate a review conducted under this subchapter, share information, or schedule work plans.

(c) In addition to the authority in Chapter 321, Government Code, the state auditor is entitled to access all information maintained by the inspector general, including vouchers, electronic data, internal records, and other information.

(d) Any information obtained or provided by the state auditor under this section is confidential and not subject to disclosure under Chapter 552, Government Code.

Sec. 201.453. FINAL REVIEW REPORTS. (a) The inspector general shall prepare a final report for each review conducted under Section 201.451. The final report must include:

(1) a summary of the activities performed by the inspector general in conducting the review; and

(2) a description of any findings in connection with a review conducted under Section 201.451.

(b) An inspector general's final reports are subject to disclosure under Chapter 552, Government Code.

(c) Unless otherwise prohibited by this chapter or other law, the inspector general shall deliver a copy of each final report that concerns the implementation or administration of a state or federally funded program to:

(1) the commission and the executive director;

(2) the governor;

(3) the lieutenant governor;

(4) the speaker of the house of representatives;

(5) the state auditor; and

(6) the appropriate legislative oversight committees.

SECTION 2A.02. The Texas Transportation Commission or the Transportation Legislative Oversight Committee, as applicable, shall appoint an inspector general as required by Section 201.451, Transportation Code, as added by this Act, not later than December 1, 2009.

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, office directors, and district engineers and on a quarterly basis to the commissioner.

(b) The Texas Department of Transportation 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 201.811 to read as follows:

Sec. 201.811. 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 commissioner in an open meeting; and

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

SECTION 3.03. (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 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 this section applies only to a contract or agreement entered into or renewed under Section 228.004, Transportation Code, as amended by this section, on or after the effective date of this Act. A contract or agreement entered into or renewed under that section 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 3.04. Section 228.201(a), Transportation Code, is amended to read as follows:

(a) The [Except as provided by Section 228.2015, the] department may not operate a nontolled state highway or a segment of a nontolled state highway as a toll project, and may not transfer a highway or segment to another entity for operation as a toll project, unless:

(1) the commission by order designated the highway or segment as a toll project before the contract to construct the highway or segment was awarded;

(2) the highway or segment was open to traffic as a turnpike project on or before September 1, 2005;

(3) the project was designated as a toll project in a plan or program of a metropolitan planning organization on or before September 1, 2005;

(4) the highway or segment is reconstructed so that the number of nontolled lanes on the highway or segment is greater than or equal to the number in existence before the reconstruction;

(5) a facility that has access, function, and control devices similar to the converted highway or segment before conversion is constructed adjacent to the highway or segment so that the number of nontolled lanes on the converted highway or segment and the adjacent facility together is greater than or equal to the number in existence on the converted highway or segment before the conversion; or

(6) subject to Subsection (b), the highway or segment was open to traffic as a high-occupancy vehicle lane on May 1, 2005[; or

[(7) the commission converts the highway or segment to a toll facility by:

[(A) making the determination required by Section 228.202;

[(B) conducting the hearing required by Section 228.203; and

[(C) obtaining county and voter approval as required by Sections 228.207 and 228.208].

SECTION 3.05. Sections 228.202, 228.203, 228.207, and 228.208, Transportation Code, are repealed.

ARTICLE 4. CONTRACTING FUNCTIONS

SECTION 4.01. Subchapter A, Chapter 223, Transportation Code, is amended by adding Section 223.017 to read as follows:

Sec. 223.017. DESIGN-BUILD CONTRACTS FOR NONTOLLED HIGHWAY PROJECTS. (a) In this section, "design-build contract" means an agreement with a private entity for the design and construction, rehabilitation, expansion, or improvement of a highway project but does not include the financing or operation of the highway.

(b) The department may enter into a design-build contract for a nontolled highway project.

(c) Notwithstanding Section 223.0041, rules adopted under this section must be consistent in all procedural aspects, including limitations, with the design-build procedures for local governmental entities under Subchapter J, Chapter 271, Local Government Code.

(c-1) Money disbursed by the department for design-build contracts under this section may not be included in the amount required to be spent in a biennium for engineering and design contracts under Section 223.041.

(d) The department shall adopt rules specifying the conditions under which a design-build contract may be considered. In developing rules the department must address:

(1) the size and complexity of an eligible project;

(2) the time constraints for delivery of an eligible project;

(3) the level and training of the staff required to manage an eligible project; and

(4) other factors the department considers important.

SECTION 4.02. (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, and signed by the attorney general, if approved;

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

(3) signed by the commissioner.

(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.

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 643.256 and 643.257 to read as follows:

Sec. 643.256. SUMMARY SUSPENSION. (a) The department 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 department 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 department 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. 643.257. 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. (a) Subchapter Q, Chapter 2301, Occupations Code, is amended by adding Sections 2301.807 and 2301.808 to read as follows:

Sec. 2301.807. ADMINISTRATIVE PENALTY. (a) The board may impose an administrative penalty on a person 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.

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.

(b) 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.

(c) The change in law made by Section 2301.808, Occupations Code, as added by this section, 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 to each person who files a written complaint with the department, and to each person who is the subject of a complaint, information about the department's policies and procedures relating to complaint investigation and resolution.

(c) The department shall keep 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. Subchapter A, Chapter 391, Transportation Code, is amended by adding Section 391.007 to read as follows:

Sec. 391.007. REQUEST FOR HEARING. (a) If the department revokes a permit issued under this chapter, denies the application for a permit submitted under this chapter, or issues an administrative penalty under this chapter, the department shall send written notice by certified mail to the affected person.

(b) Not later than the 30th day after the date a person receives notice under Subsection (a), the person may make a written request to the commission for an administrative hearing to appeal:

(1) the denial of a permit application submitted under this chapter;

(2) the revocation of a permit issued under this chapter; or

(3) the imposition of an administrative penalty under this chapter.

(c) If a person requests a hearing under this section, the hearing shall be conducted by the State Office of Administrative Hearings. Chapter 2001, Government Code, applies to a proceeding under this chapter to the extent consistent with this chapter.

(d) The State Office of Administrative Hearings shall consider the department's applicable substantive rules and policies when conducting a hearing under this section.

(e) After a hearing conducted under this section, the administrative law judge shall:

(1) make findings of fact and conclusions of law; and

(2) promptly issue a decision to the commission.

SECTION 6.04. Subchapter B, Chapter 391, Transportation Code, is amended by adding Section 391.0331 to read as follows:

Sec. 391.0331. COSTS OF REMOVAL OF CERTAIN OUTDOOR ADVERTISING IN MUNICIPALITY. If outdoor advertising located in a municipality or in the extraterritorial jurisdiction of a municipality that regulates outdoor advertising in its extraterritorial jurisdiction is required to be removed because of the widening, construction, or reconstruction of a road to which this chapter applies and if relocation of the outdoor advertising would be allowed under commission rules but is prohibited by charter, ordinance, or a decision of the municipality, the municipality shall pay just compensation to:

(1) the owner for the right, title leasehold, and interest in the outdoor advertising; and

(2) the owner or, if appropriate, the lessee of the real property on which the outdoor advertising is located for the right to erect and maintain the outdoor advertising.

SECTION 6.05. 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 6.06. 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 6.07. 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 6.08. 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 6.09. 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 6.10. 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 6.11. 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 6.12. 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 6.13. 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 6.14. (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 to each person who files a written complaint with the department, and to each person who is the subject of a complaint, information about the department's policies and procedures relating to complaint investigation and resolution.

(c) The department shall keep 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 6.15. Subchapter A, Chapter 394, Transportation Code, is amended by adding Section 394.007 to read as follows:

Sec. 394.007. COSTS FOR REMOVAL OF SIGNS IN CERTAIN MUNICIPALITIES. If a sign located in a municipality or in the extraterritorial jurisdiction of a municipality that regulates signs in its extraterritorial jurisdiction is required to be removed because of the widening, construction, or reconstruction of a road to which this chapter applies and if relocation of the sign would be allowed under commission rules but is prohibited by charter, ordinance, or a decision of the municipality, the municipality shall pay just compensation to:

(1) the owner for the right, title leasehold, and interest in the sign; and

(2) the owner or, if appropriate, the lessee of the real property on which the sign is located for the right to erect and maintain the sign.

SECTION 6.16. 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 6.17. (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.

(c) A person is not required to file with the commission a surety bond for an off-premise sign under this chapter if the person files with the commission a surety bond for outdoor advertising under Chapter 391.

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.

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.

(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 394.082. 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.

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 a permit is issued or renewed 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 6.18. 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 6.19. 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 6.20. 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.

SECTION 6.21. Subchapter E, Chapter 394, Transportation Code, is amended by adding Section 394.088 to read as follows:

Sec. 394.088. ADMINISTRATIVE HEARING. (a) If the department denies a permit application submitted under this chapter, or issues an administrative penalty under this chapter and under a section other than Section 394.086, the department shall send written notice by certified mail to the affected person.

(b) Not later than the 30th day after the date a person receives notice under Subsection (a), that person may make a written request to the commission for an administrative hearing to appeal:

(1) the denial of a permit application submitted under this chapter;

(2) the revocation of a permit issued under this chapter; or

(3) the imposition of an administrative penalty under this chapter.

(c) If a person requests a hearing under this section, the hearing shall be conducted by the State Office of Administrative Hearings. Chapter 2001, Government Code, applies to a proceeding under this chapter to the extent consistent with this chapter.

(d) The State Office of Administrative Hearings shall consider the department's applicable substantive rules and policies when conducting a hearing under this section.

(e) After a hearing conducted under this section, the administrative law judge shall:

(1) make findings of fact and conclusions of law; and

(2) promptly issue a decision to the commission.

SECTION 6.22. Subtitle H, Title 6, Transportation Code, is amended by adding Chapter 398 to read as follows:

CHAPTER 398. PROVISIONS GENERALLY APPLICABLE TO OUTDOOR SIGNS

Sec. 398.001. DEFINITION. In this chapter, "off-premise sign" means an outdoor sign displaying advertising that pertains to a business, person, organization, activity, event, place, service, or product not principally located or primarily manufactured or sold on the premises on which the sign is located.

Sec. 398.002. RIGHTS OF OWNER OF CERTAIN SIGNS. The rights associated with an off-premise sign that is lawfully in existence but no longer complies with current applicable laws and regulations, including laws and regulations promulgated under Chapters 391 and 394 of this code, and Chapter 216, Local Government Code, vest in the owner of the off-premise sign. This section does not abrogate or otherwise affect the property rights of a party in an eminent domain proceeding.

SECTION 6.23. Section 391.065(c), Transportation Code, is repealed.

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 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.

SECTION 7.02. Chapter 371, Transportation Code, as added by Chapter 103 (H.B. 570), Acts of the 80th Legislature, Regular Session, 2007, is amended by adding Subchapter C to read as follows:

SUBCHAPTER C. CONSTRUCTION, IMPROVEMENT, AND MAINTENANCE

Sec. 371.101. EXPENDITURES FOR TOLL PROJECT LANDSCAPING. (a) For each contract for a toll 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 toll project entity shall allocate to the district or districts in which the project is to be located an amount equal to 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 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. TEXAS DEPARTMENT OF MOTOR VEHICLES

PART 1. GENERAL PROVISIONS

SECTION 8.1.01. Title 7, Transportation Code, is amended by adding Subtitle M to read as follows:

SUBTITLE M. TEXAS DEPARTMENT OF MOTOR VEHICLES

CHAPTER 1001. ORGANIZATION OF DEPARTMENT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1001.001. DEFINITIONS. In this subtitle:

(1) "Board" means the board of the department.

(2) "Department" means the Texas Department of Motor Vehicles.

Sec. 1001.002. CREATION OF DEPARTMENT; DUTIES. (a) The department is created as an agency of this state.

(b) In addition to the other duties required of the Texas Department of Motor Vehicles, the department shall administer and enforce:

(1) Subtitle A;

(2) Subtitle E;

(3) Chapters 642, 643, 645, 646, and 648; and

(4) Chapters 2301 and 2302, Occupations Code.

Sec. 1001.003. COMPOSITION OF DEPARTMENT. The department is composed of an executive director appointed by the board and other employees required to efficiently implement:

(1) this subtitle;

(2) other applicable vehicle laws of this state; and

(3) other laws that grant jurisdiction to or are applicable to the department.

Sec. 1001.004. DIVISIONS. The board shall organize the department into divisions to accomplish the department's functions and the duties assigned to it, including divisions for:

(1) administration;

(2) motor carriers;

(3) motor vehicles; and

(4) vehicle titles and registration.

Sec. 1001.005. ADVISORY COMMITTEES. (a) The board shall establish separate advisory committees for the motor carrier, motor vehicles, and vehicle titles and registration divisions to make recommendations to the board or the executive director on the operation of the applicable division. A committee has the purposes, powers, and duties, including the manner of reporting its work, prescribed by the board. A committee and each committee member serves at the will of the board.

(b) The board shall appoint persons to each advisory committee who:

(1) are selected from a list provided by the executive director; and

(2) have knowledge about and interests in, and represent a broad range of viewpoints about, the work of the committee or applicable division.

(c) The advisory committee for the motor vehicles division must include a member to represent motor vehicle manufacturers and a member to represent the recreational vehicle industry.

(d) The advisory committee for the motor carrier division must include a member to represent the motor transportation industry.

(e) A member of an advisory committee may not be compensated by the board or the department for committee service.

Sec. 1001.006. SUNSET PROVISION. The department 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, 2015.

[Sections 1001.007-1001.020 reserved for expansion]

SUBCHAPTER B. BOARD OF DEPARTMENT OF MOTOR VEHICLES

Sec. 1001.021. BOARD. (a) The board consists of nine members appointed by the governor with the advice and consent of the senate.

(b) The membership of the board must include:

(1) three members who are persons who hold a dealer's license issued under Chapter 2301, Occupations Code, of whom:

(A) two members must be franchised dealers of different classes; and

(B) one member must be an independent dealer;

(2) one member who is a representative of a manufacturer or distributor that holds a license issued under Chapter 2301, Occupations Code;

(3) one member who is a tax assessor-collector;

(4) one member who is a representative of a law enforcement agency of a county or municipality;

(5) one member who is a representative of the motor carrier industry; and

(6) two members who are public members.

(c) A person may not be a public member of the board if the person or the person's spouse:

(1) is registered, certified, or licensed by the department;

(2) is employed by or participates in the management of a business entity or other organization regulated by or receiving money from the department;

(3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving money from the department; or

(4) uses or receives a substantial amount of tangible goods, services, or money from the department other than compensation or reimbursement authorized by law for board membership, attendance, or expenses.

Sec. 1001.022. TERMS. Members of the board serve staggered six-year terms, with the terms of either one or two members expiring February 1 of each odd-numbered year.

Sec. 1001.023. PRESIDING OFFICER OF BOARD. (a) The governor shall designate a member of the board as the presiding officer of the board to serve in that capacity at the pleasure of the governor.

(b) The presiding officer shall:

(1) preside over board meetings, make rulings on motions and points of order, and determine the order of business;

(2) create subcommittees, appoint board members to subcommittees, and receive the reports of subcommittees to the board as a whole; and

(3) appoint a member of the board to act in the presiding officer's absence.

Sec. 1001.024. BOARD MEETINGS. The board shall hold regular meetings at least quarterly or at the call of the presiding officer. Board members shall attend the meetings of the board. The presiding officer shall oversee the preparation of an agenda for each meeting and ensure that a copy is provided to each board member at least seven days before the meeting.

Sec. 1001.025. COMPENSATION. A member of the board is not entitled to compensation, but each member is entitled to reimbursement for actual and necessary expenses as provided by the General Appropriations Act.

Sec. 1001.026. GROUNDS FOR REMOVAL. (a) It is a ground for removal from the board that a board member:

(1) does not have at the time of taking office the qualifications required by Section 1001.021;

(2) does not maintain during service on the board the qualifications required by Section 1001.021;

(3) is ineligible for membership under Section 1001.021(c), 1007.002, or 1007.003;

(4) cannot, because of illness or disability, discharge the member's duties for a substantial part of the member's term; or

(5) is absent from more than half of the regularly scheduled board meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the board.

(b) The validity of an action of the board is not affected by the fact that it is taken when a ground for removal of a board member exists.

(c) If the executive director of the department has knowledge that a potential ground for removal exists, the executive director shall notify the presiding officer of the board of the potential ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the executive director shall notify the next highest ranking officer of the board, who shall then notify the governor and the attorney general that a potential ground for removal exists.

Sec. 1001.027. TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING TO DEPARTMENT. (a) A person who is appointed to and qualifies for office as a member of the board may not vote, deliberate, or be counted as a member in attendance at a meeting of the board until the person completes a training program that complies with this section.

(b) The training program must provide the person with information regarding:

(1) the legislation that created the department;

(2) the programs, functions, rules, and budget of the department;

(3) the results of the most recent formal audit of the department;

(4) the requirements of laws relating to open meetings, public information, administrative procedure, and conflicts of interest; and

(5) any applicable ethics policies adopted by the department or the Texas Ethics Commission.

(c) A person appointed to the board is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office.

Sec. 1001.028. TECHNOLOGICAL SOLUTIONS. The board 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. 1001.029. NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE RESOLUTION PROCEDURES. (a) The board 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 board 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.

[Sections 1001.030-1001.040 reserved for expansion]

SUBCHAPTER C. PERSONNEL

Sec. 1001.041. DIVISION OF RESPONSIBILITIES. The board shall develop and implement policies that clearly separate the policymaking responsibilities of the board and the management responsibilities of the executive director and the staff of the department.

CHAPTER 1002. RULES

Sec. 1002.001. GENERAL RULEMAKING AUTHORITY. The board may adopt any rules necessary and appropriate to implement the powers and duties of the department under this code and other laws of this state.

[Chapters 1003-1005 reserved for expansion]

CHAPTER 1006. PUBLIC ACCESS

Sec. 1006.001. PUBLIC COMMENT. The board shall develop and implement policies that provide the public with a reasonable opportunity to appear before the board and to speak on any issue under the jurisdiction of the department.

Sec. 1006.002. COMPLAINT PROCEDURES. (a) The department shall maintain a system to promptly and efficiently act on complaints filed with the department. The department shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition.

(b) The department shall make information available describing its procedures for complaint investigation and resolution.

(c) The department shall periodically notify the complaint parties of the status of the complaint until final disposition.

CHAPTER 1007. STANDARDS OF CONDUCT

Sec. 1007.001. APPLICATION OF LAW RELATING TO ETHICAL CONDUCT. The board, the executive director, and each employee or agent of the department is subject to the code of ethics and the standard of conduct imposed by Chapter 572, Government Code, and any other law regulating the ethical conduct of state officers and employees.

Sec. 1007.002. CONFLICTS OF INTEREST. (a) In this section, "Texas trade association" means a 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.

(b) A person may not be a member of the board and may not be a department employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the motor vehicle or motor carrier industry or of a tax assessor-collector or law enforcement trade association; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the motor vehicle or motor carrier industry or of a tax assessor-collector or law enforcement trade association.

(c) A person may not be a member of the board or act as the general counsel to the board or the department if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the department.

Sec. 1007.003. LOBBYING ACTIVITIES. A person may not serve as the executive director or act as the general counsel to the department if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of an occupation related to the operation of the department.

PART 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS DEPARTMENT OF

TRANSPORTATION

SUBPART A. GENERAL PROVISIONS AND ADMINISTRATION

SECTION 8.2A.01. Section 201.931(2), Transportation Code, is amended to read as follows:

(2) "License" includes[:

[(A) a permit issued by the department that authorizes the operation of a vehicle and its load or a combination of vehicles and load exceeding size or weight limitations;

[(B) a motor carrier registration issued under Chapter 643;

[(C) a vehicle storage facility license issued under Chapter 2303, Occupations Code;

[(D)] a license or permit for outdoor advertising issued under Chapter 391 or 394[;

[(E) a salvage vehicle dealer or agent license issued under Chapter 2302, Occupations Code;

[(F) specially designated or specialized license plates issued under Subchapters E and F, Chapter 502; and

[(G) an apportioned registration issued according to the International Registration Plan under Section 502.054].

SUBPART B. STATE HIGHWAY TOLL PROJECTS

SECTION 8.2B.01. Sections 228.055(b) and (h), Transportation Code, are amended to read as follows:

(b) The department may impose and collect the administrative fee, so as to recover the cost of collecting the unpaid toll, not to exceed $100. The department shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the Texas Department of Motor Vehicles [department] by first class mail and may require payment not sooner than the 30th day after the date the notice was mailed. The registered owner shall pay a separate toll and administrative fee for each event of nonpayment under Section 228.054.

(h) In this section, "registered owner" means the owner of a vehicle as shown on the vehicle registration records of the Texas Department of Motor Vehicles [department] or the analogous department or agency of another state or country.

SECTION 8.2B.02. Section 228.056(b), Transportation Code, is amended to read as follows:

(b) In the prosecution of an offense under Section 228.055(c), (d), or (e):

(1) it is presumed that the notice of nonpayment was received on the fifth day after the date of mailing;

(2) a computer record of the Texas Department of Motor Vehicles [department] of the registered owner of the vehicle is prima facie evidence of its contents and that the defendant was the registered owner of the vehicle when the underlying event of nonpayment under Section 228.054 occurred; and

(3) a copy of the rental, lease, or other contract document covering the vehicle on the date of the underlying event of nonpayment under Section 228.054 is prima facie evidence of its contents and that the defendant was the lessee of the vehicle when the underlying event of nonpayment under Section 228.054 occurred.

SUBPART C. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND

HIGHWAYS IN CERTAIN COUNTIES

SECTION 8.2C.01. Sections 284.0701(b), (e), and (h), Transportation Code, are amended to read as follows:

(b) The county may impose and collect the administrative cost so as to recover the expense of collecting the unpaid toll, not to exceed $100. The county shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the Texas Department of Motor Vehicles [department] by first-class mail not later than the 30th day after the date of the alleged failure to pay and may require payment not sooner than the 30th day after the date the notice was mailed. The registered owner shall pay a separate toll and administrative cost for each event of nonpayment under Section 284.070.

(e) It is an exception to the application of Subsection (a) or (c) if the registered owner of the vehicle transferred ownership of the vehicle to another person before the event of nonpayment under Section 284.070 occurred, submitted written notice of the transfer to the Texas Department of Motor Vehicles [department] in accordance with Section 520.023, and before the 30th day after the date the notice of nonpayment is mailed, provides to the county the name and address of the person to whom the vehicle was transferred. If the former owner of the vehicle provides the required information within the period prescribed, the county may send a notice of nonpayment to the person to whom ownership of the vehicle was transferred at the address provided by the former owner by first-class mail before the 30th day after the date of receipt of the required information from the former owner. The subsequent owner of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative cost within the time specified by the notice of nonpayment commits an offense. The subsequent owner shall pay a separate toll and administrative cost for each event of nonpayment under Section 284.070. Each failure to pay a toll or administrative cost under this subsection is a separate offense.

(h) In this section, "registered owner" means the owner of a vehicle as shown on the vehicle registration records of the Texas Department of Motor Vehicles [department] or the analogous department or agency of another state or country.

SUBPART D. CERTIFICATE OF TITLE ACT

SECTION 8.2D.01. Section 501.002(3), Transportation Code, is amended to read as follows:

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

SUBPART E. REGISTRATION OF VEHICLES

SECTION 8.2E.01. Section 502.001(3), Transportation Code, is amended to read as follows:

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2E.02. Sections 502.053(a) and (b), Transportation Code, are amended to read as follows:

(a) The department [Texas Department of Transportation] shall reimburse the Texas Department of Criminal Justice for the cost of manufacturing license plates or registration insignia as the license plates or insignia and the invoice for the license plates or insignia are delivered to the department [Texas Department of Transportation].

(b) When manufacturing is started, the Texas Department of Criminal Justice, the department [Texas Department of Transportation], and the comptroller, after negotiation, shall set the price to be paid for each license plate or insignia. The price must be determined from:

(1) the cost of metal, paint, and other materials purchased;

(2) the inmate maintenance cost per day;

(3) overhead expenses;

(4) miscellaneous charges; and

(5) a previously approved amount of profit for the work.

SUBPART F. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES

SECTION 8.2F.01. Section 503.001(5), Transportation Code, is amended to read as follows:

(5) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2F.02. Section 503.003, Transportation Code, is amended to read as follows:

Sec. 503.003. DISPLAY OR SALE OF NONMOTORIZED VEHICLE OR TRAILER. This chapter does not prohibit the display or sale of a nonmotorized vehicle or trailer at a regularly scheduled vehicle or boat show with multiple vendors in accordance with [commission] rules of the board of the Texas Department of Motor Vehicles.

SECTION 8.2F.03. Section 503.009(c), Transportation Code, is amended to read as follows:

(c) A decision or final order issued under this section is final and may not be appealed, as a matter of right, to the board of the Texas Department of Motor Vehicles [commission].

SECTION 8.2F.04. Sections 503.010 and 503.011, Transportation Code, are amended to read as follows:

Sec. 503.010. TERM OF GENERAL DISTINGUISHING NUMBER, LICENSE, OR LICENSE PLATE. Each general distinguishing number, license, or license plate issued under this chapter is valid for the period prescribed by the board of the Texas Department of Motor Vehicles [commission].

Sec. 503.011. PRORATING FEES. If the board of the Texas Department of Motor Vehicles [commission] prescribes the term of a general distinguishing number, license, or license plate under this chapter for a period other than one year, the board of the Texas Department of Motor Vehicles [commission] shall prorate the applicable annual fee required under this chapter as necessary to reflect the term of the number, license, or license plate.

SECTION 8.2F.05. Section 503.031(a), Transportation Code, is amended to read as follows:

(a) An applicant for a drive-a-way in-transit license must submit to the board of the Texas Department of Motor Vehicles [commission] an application containing the information required by the board of the Texas Department of Motor Vehicles [commission].

SECTION 8.2F.06. Section 503.001(2), Transportation Code, is repealed.

SUBPART G. MISCELLANEOUS PROVISIONS

SECTION 8.2G.01. Section 520.001, Transportation Code, is amended to read as follows:

Sec. 520.001. DEFINITION. In this chapter, "department" means the Texas Department of Motor Vehicles [Transportation].

SUBPART H. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES

SECTION 8.2H.01. Section 551.302, Transportation Code, is amended to read as follows:

Sec. 551.302. REGISTRATION. The Texas Department of Motor Vehicles [Transportation] may adopt rules relating to the registration and issuance of license plates to neighborhood electric vehicles.

SUBPART I. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT

SECTION 8.2I.01. Section 601.023, Transportation Code, is amended to read as follows:

Sec. 601.023. PAYMENT OF STATUTORY FEES. The department may pay:

(1) a statutory fee required by the Texas Department of Motor Vehicles [Transportation] for a certified abstract or in connection with suspension of a vehicle registration; or

(2) a statutory fee payable to the comptroller for issuance of a certificate of deposit required by Section 601.122.

SECTION 8.2I.02. Section 601.451, Transportation Code, as added by Chapter 892 (S.B. 1670), Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

Sec. 601.451. DEFINITION. In this subchapter, "implementing agencies" means:

(1) the department;

(2) the Texas Department of Motor Vehicles [Transportation];

(3) the Texas Department of Insurance; and

(4) the Department of Information Resources.

SECTION 8.2I.03. Subchapter N, Chapter 601, Transportation Code, as added by Chapter 1325 (H.B. 3588), Acts of the 78th Legislature, Regular Session, 2003, is repealed.

SUBPART J. GENERAL PROVISIONS RELATING TO VEHICLE SIZE AND WEIGHT

SECTION 8.2J.01. Sections 621.001(2), (3), and (4), Transportation Code, are amended to read as follows:

(2) "Board" ["Commission"] means the board of the Texas Department of Motor Vehicles [Transportation Commission].

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

(4) "Director" means the executive director of the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2J.02. Section 621.003(a), Transportation Code, is amended to read as follows:

(a) The board [commission] by rule may authorize the director to enter into with the proper authority of another state an agreement that authorizes:

(1) the authority of the other state to issue on behalf of the department to the owner or operator of a vehicle, or combination of vehicles, that exceeds the weight or size limits allowed by this state a permit that authorizes the operation or transportation on a highway in this state of the vehicle or combination of vehicles; and

(2) the department to issue on behalf of the authority of the other state to the owner or operator of a vehicle, or combination of vehicles, that exceeds the weight or size limits allowed by that state a permit that authorizes the operation or transportation on a highway of that state of the vehicle or combination of vehicles.

SECTION 8.2J.03. Subchapter A, Chapter 621, Transportation Code, is amended by adding Section 621.008 to read as follows:

Sec. 621.008. STUDY REGARDING OVERSIZE AND OVERWEIGHT VEHICLES. (a) In this section, "division" means the motor carrier division of the Texas Department of Motor Vehicles.

(b) The division and the Texas Department of Transportation shall conduct a joint study to determine improvements to the regulation of oversize and overweight vehicles.

(c) In conducting the study, the division and the Texas Department of Transportation shall consider:

(1) prohibiting overweight vehicles or vehicle combinations from traveling on state highways if the vehicle or combination will cause damage to a road or bridge, based on the weight or load specifications to which the road or bridge was built;

(2) requiring each applicant for a permit under Chapter 623 to pay a graduated highway maintenance fee based on weight and the amount of damage done by the permitted vehicle or vehicle combination to roads and bridges;

(3) requiring each fee collected for an overweight or oversize vehicle permit to be deposited in the state highway fund; and

(4) eliminating all exemptions for overweight vehicles.

(d) Not later than September 1, 2010, the division and the Texas Department of Transportation shall report the results of the study conducted under this section to the governor, the lieutenant governor, the speaker of the house of representatives, and the appropriate oversight committee of each house of the legislature.

(e) This section expires September 1, 2011.

SECTION 8.2J.04. Section 621.102, Transportation Code, is amended to read as follows:

Sec. 621.102. BOARD'S [COMMISSION'S] AUTHORITY TO SET MAXIMUM WEIGHTS. (a) The board [commission] may set the maximum single axle weight, tandem axle weight, or gross weight of a vehicle, or maximum single axle weight, tandem axle weight, or gross weight of a combination of vehicles and loads, that may be moved over a state highway or a farm or ranch road if the board [commission] finds that heavier maximum weight would rapidly deteriorate or destroy the road or a bridge or culvert along the road. A maximum weight set under this subsection may not exceed the maximum set by statute for that weight.

(b) The board [commission] must set a maximum weight under this section by order entered in its minutes.

(c) The board [commission] must make the finding under this section on an engineering and traffic investigation and in making the finding shall consider the width, condition, and type of pavement structures and other circumstances on the road.

(d) A maximum weight or load set under this section becomes effective on a highway or road when appropriate signs giving notice of the maximum weight or load are erected on the highway or road under order of the board [commission].

(e) A vehicle operating under a permit issued under Section 623.011, 623.071, 623.094, 623.121, 623.142, 623.181, 623.192, or 623.212 may operate under the conditions authorized by the permit over a road for which the board [commission] has set a maximum weight under this section.

(f) For the purpose of this section, a farm or ranch road is a state highway that is shown in the records of the board [commission] to be a farm-to-market or ranch-to-market road.

(g) This section does not apply to a vehicle delivering groceries, farm products, or liquefied petroleum gas.

SECTION 8.2J.05. The heading to Section 621.202, Transportation Code, is amended to read as follows:

Sec. 621.202. BOARD'S [COMMISSION'S] AUTHORITY TO SET MAXIMUM WIDTH.

SECTION 8.2J.06. Section 621.202(a), Transportation Code, is amended to read as follows:

(a) To comply with safety and operational requirements of federal law, the board [commission] by order may set the maximum width of a vehicle, including the load on the vehicle, at eight feet for a designated highway or segment of a highway if the results of an engineering and traffic study that includes an analysis of structural capacity of bridges and pavements, traffic volume, unique climatic conditions, and width of traffic lanes support the change.

SECTION 8.2J.07. Section 621.301(b), Transportation Code, is amended to read as follows:

(b) The commissioners court may limit the maximum weights to be moved on or over a county road, bridge, or culvert by exercising its authority under this subsection in the same manner and under the same conditions provided by Section 621.102 for the board [commission] to limit maximum weights on highways and roads to which that section applies.

SECTION 8.2J.08. Section 621.352(a), Transportation Code, is amended to read as follows:

(a) The board [commission] by rule may establish fees for the administration of Section 621.003 in an amount that, when added to the other fees collected by the department, does not exceed the amount sufficient to recover the actual cost to the department of administering that section. An administrative fee collected under this section shall be sent to the comptroller for deposit to the credit of the state highway fund and may be appropriated only to the department for the administration of Section 621.003.

SECTION 8.2J.09. Section 621.356, Transportation Code, is amended to read as follows:

Sec. 621.356. FORM OF PAYMENT. The board [commission] may adopt rules prescribing the method for payment of a fee for a permit issued by the department that authorizes the operation of a vehicle and its load or a combination of vehicles and load exceeding size or weight limitations. The rules may:

(1) authorize the use of electronic funds transfer or a credit card issued by:

(A) a financial institution chartered by a state or the federal government; or

(B) a nationally recognized credit organization approved by the board [commission]; and

(2) require the payment of a discount or service charge for a credit card payment in addition to the fee.

SUBPART K. SPECIAL PROVISIONS AND EXCEPTIONS FOR OVERSIZE OR

OVERWEIGHT VEHICLES

SECTION 8.2K.01. Section 622.001, Transportation Code, is amended to read as follows:

Sec. 622.001. DEFINITION. In this chapter, "department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2K.02. Section 622.101(a), Transportation Code, is amended to read as follows:

(a) A single motor vehicle used exclusively to transport chile pepper modules, seed cotton, cotton, cotton burrs, or equipment used to transport or process chile pepper modules or cotton, including a motor vehicle or burr spreader, may not be operated on a highway or road if the vehicle is:

(1) wider than 10 feet and the highway has not been designated by the board [commission] under Section 621.202;

(2) longer than 48 feet; or

(3) higher than 14 feet 6 inches.

SUBPART L. PERMITS FOR OVERSIZE OR OVERWEIGHT VEHICLES

SECTION 8.2L.01. Section 623.001, Transportation Code, is amended by amending Subdivision (1) and adding Subdivision (4) to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

(4) "Board" means the board of the Texas Department of Motor Vehicles.

SECTION 8.2L.02. Sections 623.012(a), (b), and (c), Transportation Code, are amended to read as follows:

(a) An applicant for a permit under Section 623.011, other than a permit to operate a vehicle loaded with timber or pulp wood, wood chips, cotton, or agricultural products in their natural state, shall file with the Texas Department of Transportation [department]:

(1) a blanket bond; or

(2) an irrevocable letter of credit issued by a financial institution the deposits of which are guaranteed by the Federal Deposit Insurance Corporation.

(b) The bond or letter of credit must:

(1) be in the amount of $15,000 payable to the Texas Department of Transportation [department] and the counties of this state;

(2) be conditioned that the applicant will pay the Texas Department of Transportation [department] for any damage to a state highway, and a county for any damage to a road or bridge of the county, caused by the operation of the vehicle for which the permit is issued at a heavier weight than the maximum weights authorized by Subchapter B of Chapter 621 or Section 621.301; and

(3) provide that the issuer is to notify the Texas Department of Transportation [department] and the applicant in writing promptly after a payment is made by the issuer on the bond or letter of credit.

(c) If an issuer of a bond or letter of credit pays under the bond or letter of credit, the permit holder shall file with the Texas Department of Transportation [department] before the 31st day after the date on which the payment is made:

(1) a replacement bond or letter of credit in the amount prescribed by Subsection (b) for the original bond or letter of credit; or

(2) a notification from the issuer of the existing bond or letter of credit that the bond or letter of credit has been restored to the amount prescribed by Subsection (b).

SECTION 8.2L.03. Sections 623.016(a) and (b), Transportation Code, are amended to read as follows:

(a) The Texas Department of Transportation [department] or a county may recover on the bond or letter of credit required for a permit issued under Section 623.011 only by a suit against the permit holder and the issuer of the bond or letter of credit.

(b) Venue for a suit by the Texas Department of Transportation [department] is in a district court in:

(1) the county in which the defendant resides;

(2) the county in which the defendant has its principal place of business in this state if the defendant is a corporation or partnership; or

(3) Travis County if the defendant is a corporation or partnership that does not have a principal place of business in this state.

SECTION 8.2L.04. Section 623.051, Transportation Code, is amended to read as follows:

Sec. 623.051. CONTRACT ALLOWING OVERSIZE OR OVERWEIGHT VEHICLE TO CROSS ROAD; SURETY BOND. (a) A person may operate a vehicle that cannot comply with one or more of the restrictions of Subchapter C of Chapter 621 or Section 621.101 to cross the width of any road or highway under the jurisdiction of the Texas Department of Transportation [department], other than a controlled access highway as defined by Section 203.001, from private property to other private property if the person contracts with the Texas Transportation Commission [commission] to indemnify the Texas Department of Transportation [department] for the cost of maintenance and repair of the part of the highway crossed by the vehicle.

(b) The Texas Transportation Commission [commission] shall adopt rules relating to the forms and procedures to be used under this section and other matters that the commission considers necessary to carry out this section.

(c) To protect the safety of the traveling public, minimize any delays and inconveniences to the operators of vehicles in regular operation, and assure payment for the added wear on the highways in proportion to the reduction of service life, the Texas Transportation Commission [commission], in adopting rules under this section, shall consider:

(1) the safety and convenience of the general traveling public;

(2) the suitability of the roadway and subgrade on the road or highway to be crossed, variation in soil grade prevalent in the different regions of the state, and the seasonal effects on highway load capacity, the highway shoulder design, and other highway geometrics; and

(3) the state's investment in its highway system.

(d) Before exercising any right under a contract under this section, a person must execute with a corporate surety authorized to do business in this state a surety bond in an amount determined by the Texas Transportation Commission [commission] to compensate for the cost of maintenance and repairs as provided by this section. The bond must be approved by the comptroller and the attorney general and must be conditioned on the person fulfilling the obligations of the contract.

SECTION 8.2L.05. Section 623.052(b), Transportation Code, is amended to read as follows:

(b) Before a person may operate a vehicle under this section, the person must:

(1) contract with the Texas Department of Transportation [department] to indemnify the Texas Department of Transportation [department] for the cost of the maintenance and repair for damage caused by a vehicle crossing that part of the highway; and

(2) execute an adequate surety bond to compensate for the cost of maintenance and repair, approved by the comptroller and the attorney general, with a corporate surety authorized to do business in this state, conditioned on the person fulfilling each obligation of the agreement.

SECTION 8.2L.06. Section 623.075(a), Transportation Code, is amended to read as follows:

(a) Before the department may issue a permit under this subchapter, the applicant shall file with the Texas Department of Transportation [department] a bond in an amount set by the Texas Department of Transportation [department], payable to the Texas Department of Transportation [department], and conditioned that the applicant will pay to the Texas Department of Transportation [department] any damage that might be sustained to the highway because of the operation of the equipment for which a permit is issued.

SECTION 8.2L.07. Sections 623.076(b) and (c), Transportation Code, are amended to read as follows:

(b) The board [Texas Transportation Commission] may adopt rules for the payment of a fee under Subsection (a). The rules may:

(1) authorize the use of electronic funds transfer;

(2) authorize the use of a credit card issued by:

(A) a financial institution chartered by a state or the United States; or

(B) a nationally recognized credit organization approved by the board [Texas Transportation Commission]; and

(3) require the payment of a discount or service charge for a credit card payment in addition to the fee prescribed by Subsection (a).

(c) An application for a permit under Section 623.071(c)(3) or (d) must be accompanied by the permit fee established by the board [commission] for the permit, not to exceed $7,000. Of each fee collected under this subsection, the department shall send:

(1) the first $1,000 to the comptroller for deposit to the credit of the general revenue fund; and

(2) any amount in excess of $1,000 to the comptroller for deposit to the credit of the state highway fund.

SECTION 8.2L.08. Sections 623.145, 623.146, 623.195, 623.196, 623.232, and 623.239, Transportation Code, are amended to read as follows:

Sec. 623.145. RULES; FORMS AND PROCEDURES; FEES. (a) The board [Texas Transportation Commission] by rule shall provide for the issuance of permits under this subchapter. The rules must include each matter the board [commission] determines necessary to implement this subchapter and:

(1) requirements for forms and procedures used in applying for a permit;

(2) conditions with regard to route and time of movement;

(3) requirements for flags, flaggers, and warning devices;

(4) the fee for a permit; and

(5) standards to determine whether a permit is to be issued for one trip only or for a period established by the board [commission].

(b) In adopting a rule or establishing a fee, the board [commission] shall consider and be guided by:

(1) the state's investment in its highway system;

(2) the safety and convenience of the general traveling public;

(3) the registration or license fee paid on the vehicle for which the permit is requested;

(4) the fees paid by vehicles operating within legal limits;

(5) the suitability of roadways and subgrades on the various classes of highways of the system;

(6) the variation in soil grade prevalent in the different regions of the state;

(7) the seasonal effects on highway load capacity;

(8) the highway shoulder design and other highway geometrics;

(9) the load capacity of the highway bridges;

(10) administrative costs;

(11) added wear on highways; and

(12) compensation for inconvenience and necessary delays to highway users.

Sec. 623.146. VIOLATION OF RULE. A permit under this subchapter is void on the failure of an owner or the owner's representative to comply with a rule of the board [commission] or with a condition placed on the permit, and immediately on the violation, further movement over the highway of an oversize or overweight vehicle violates the law regulating the size or weight of a vehicle on a public highway.

Sec. 623.195. RULES; FORMS AND PROCEDURES; FEES. (a) The board [Texas Transportation Commission] by rule shall provide for the issuance of a permit under this subchapter. The rules must include each matter the board [commission] determines necessary to implement this subchapter and:

(1) requirements for forms and procedures used in applying for a permit;

(2) conditions with regard to route and time of movement;

(3) requirements for flags, flaggers, and warning devices;

(4) the fee for a permit; and

(5) standards to determine whether a permit is to be issued for one trip only or for a period established by the board [commission].

(b) In adopting a rule or establishing a fee, the board [commission] shall consider and be guided by:

(1) the state's investment in its highway system;

(2) the safety and convenience of the general traveling public;

(3) the registration or license fee paid on the vehicle for which the permit is requested;

(4) the fees paid by vehicles operating within legal limits;

(5) the suitability of roadways and subgrades on the various classes of highways of the system;

(6) the variation in soil grade prevalent in the different regions of the state;

(7) the seasonal effects on highway load capacity;

(8) the highway shoulder design and other highway geometrics;

(9) the load capacity of highway bridges;

(10) administrative costs;

(11) added wear on highways; and

(12) compensation for inconvenience and necessary delays to highway users.

Sec. 623.196. VIOLATION OF RULE. A permit under this subchapter is void on the failure of an owner or the owner's representative to comply with a rule of the board [commission] or with a condition placed on the permit, and immediately on the violation, further movement over a highway of an oversize or overweight vehicle violates the law regulating the size or weight of a vehicle on a public highway.

Sec. 623.232. ISSUANCE OF PERMITS. The board [Texas Transportation Commission] may authorize the district to issue permits for the movement of oversize or overweight vehicles carrying cargo on state highways located in Victoria County.

Sec. 623.239. RULES. The board [Texas Transportation Commission] may adopt rules necessary to implement this subchapter.

SECTION 8.2L.09. Section 623.252(a), Transportation Code, is amended to read as follows:

(a) The board [Texas Transportation Commission] may authorize the county to issue permits for the movement of oversize or overweight vehicles carrying cargo on state highways located in Chambers County.

SECTION 8.2L.10. Section 623.259, Transportation Code, is amended to read as follows:

Sec. 623.259. RULES. The board [Texas Transportation Commission] may adopt rules necessary to implement this subchapter.

SUBPART M. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR

VEHICLES

SECTION 8.2M.01. Section 642.002(d), Transportation Code, is amended to read as follows:

(d) The Texas Department of Motor Vehicles [Transportation] by rule may prescribe additional requirements regarding the form of the markings required by Subsection (a)(2) that are not inconsistent with that subsection.

SUBPART N. MOTOR CARRIER REGISTRATION

SECTION 8.2N.01. Section 643.001, Transportation Code, is amended by amending Subdivision (1) and adding Subdivision (1-a) to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

(1-a) "Board" means the board of the Texas Department of Motor Vehicles.

SUBPART O. SINGLE STATE REGISTRATION

SECTION 8.2O.01. Section 645.001, Transportation Code, is amended to read as follows:

Sec. 645.001. FEDERAL MOTOR CARRIER REGISTRATION. The Texas Department of Motor Vehicles [Transportation] may, to the fullest extent practicable, participate in a federal motor carrier registration program under the unified carrier registration system as defined by Section 643.001 or a [the] single state registration system established under federal law [49 U.S.C. Section 14504].

SUBPART P. MOTOR TRANSPORTATION BROKERS

SECTION 8.2P.01. Section 646.003(a), Transportation Code, is amended to read as follows:

(a) A person may not act as a motor transportation broker unless the person provides a bond to the Texas Department of Motor Vehicles [Transportation].

SUBPART Q. FOREIGN COMMERCIAL MOTOR TRANSPORTATION

SECTION 8.2Q.01. Section 648.002, Transportation Code, is amended to read as follows:

Sec. 648.002. RULES. In addition to rules required by this chapter, the Texas Department of Motor Vehicles [Transportation], the Department of Public Safety, and the Texas Department of Insurance may adopt other rules to carry out this chapter.

SUBPART R. ABANDONED MOTOR VEHICLES

SECTION 8.2R.01. Section 683.001(1), Transportation Code, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

SUBPART S. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS

SECTION 8.2S.01. Section 702.001(1), Transportation Code, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

SUBPART T. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM

SECTION 8.2T.01. Section 707.001(2), Transportation Code, is amended to read as follows:

(2) "Owner of a motor vehicle" means the owner of a motor vehicle as shown on the motor vehicle registration records of the Texas Department of Motor Vehicles [Transportation] or the analogous department or agency of another state or country.

SECTION 8.2T.02. Section 707.011(b), Transportation Code, is amended to read as follows:

(b) Not later than the 30th day after the date the violation is alleged to have occurred, the designated department, agency, or office of the local authority or the entity with which the local authority contracts under Section 707.003(a)(1) shall mail the notice of violation to the owner at:

(1) the owner's address as shown on the registration records of the Texas Department of Motor Vehicles [Transportation]; or

(2) if the vehicle is registered in another state or country, the owner's address as shown on the motor vehicle registration records of the department or agency of the other state or country analogous to the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2T.03. Section 707.017, Transportation Code, is amended to read as follows:

Sec. 707.017. ENFORCEMENT. If the owner of a motor vehicle is delinquent in the payment of a civil penalty imposed under this chapter, the county assessor-collector or the Texas Department of Motor Vehicles [Transportation] may refuse to register a motor vehicle alleged to have been involved in the violation.

SUBPART U. SALE OR LEASE OF MOTOR VEHICLES

SECTION 8.2U.01. Section 2301.002(9), Occupations Code, is amended to read as follows:

(9) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2U.02. Section 2301.005(a), Occupations Code, is amended to read as follows:

(a) A reference in law, including a rule, to the Texas Motor Vehicle Commission or to the board means the board of the Texas Department of Motor Vehicles, in matters concerning the governance of the department of motor vehicles or the policymaking, rulemaking, or adjudicative functions of the department. A reference in law to the board is a reference to the director of the motor vehicles division in matters concerning the administrative functions of the division [director, except that a reference to the board means the commission if it is related to the adoption of rules].

SECTION 8.2U.03. Sections 2301.606(a), (b), and (c), Occupations Code, are amended to read as follows:

(a) The board [director] under board rules shall conduct hearings and issue final orders for the implementation and enforcement of this subchapter. [An order issued by the director under this subchapter is considered a final order of the board.]

(b) In a hearing before the board [director] under this subchapter, a manufacturer, converter, or distributor may plead and prove as an affirmative defense to a remedy under this subchapter that a nonconformity:

(1) is the result of abuse, neglect, or unauthorized modification or alteration of the motor vehicle; or

(2) does not substantially impair the use or market value of the motor vehicle.

(c) The board [director] may not issue an order requiring a manufacturer, converter, or distributor to make a refund or to replace a motor vehicle unless:

(1) the owner or a person on behalf of the owner has mailed written notice of the alleged defect or nonconformity to the manufacturer, converter, or distributor; and

(2) the manufacturer, converter, or distributor has been given an opportunity to cure the alleged defect or nonconformity.

SECTION 8.2U.04. Section 2301.002(33), Occupations Code, is repealed.

SUBPART V. SALVAGE VEHICLE DEALERS

SECTION 8.2V.01. Sections 2302.001(2) and (3), Occupations Code, are amended to read as follows:

(2) "Board" ["Commission"] means the board of the Texas Department of Motor Vehicles [Transportation Commission].

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 8.2V.02. Section 2302.0015(b), Occupations Code, is amended to read as follows:

(b) For the purpose of enforcing or administering this chapter or Chapter 501 or 502, Transportation Code, a member of the board [commission], an employee or agent of the board [commission] or department, a member of the Public Safety Commission, an officer of the Department of Public Safety, or a peace officer may at a reasonable time:

(1) enter the premises of a business regulated under one of those chapters; and

(2) inspect or copy any document, record, vehicle, part, or other item regulated under one of those chapters.

SECTION 8.2V.03. The heading to Subchapter B, Chapter 2302, Occupations Code, is amended to read as follows:

SUBCHAPTER B. BOARD [COMMISSION] POWERS AND DUTIES

SECTION 8.2V.04. Sections 2302.051, 2302.052, and 2302.053, Occupations Code, are amended to read as follows:

Sec. 2302.051. RULES AND ENFORCEMENT POWERS. The board [commission] shall adopt rules as necessary to administer this chapter and may take other action as necessary to enforce this chapter.

Sec. 2302.052. DUTY TO SET FEES. The board [commission] shall set application fees, license fees, renewal fees, and other fees as required to implement this chapter. The board [commission] shall set the fees in amounts reasonable and necessary to implement and enforce this chapter.

Sec. 2302.053. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (a) The board [commission] may not adopt a rule under Section 2302.051 restricting advertising or competitive bidding by a person who holds a license issued under this chapter except to prohibit false, misleading, or deceptive practices by the person.

(b) The board [commission] may not include in its rules to prohibit false, misleading, or deceptive practices a rule that:

(1) restricts the use of any advertising medium;

(2) restricts the person's personal appearance or use of the person's voice in an advertisement;

(3) relates to the size or duration of an advertisement by the person; or

(4) restricts the use of a trade name in advertising by the person.

SECTION 8.2V.05. Section 2302.108(b), Occupations Code, is amended to read as follows:

(b) The board [commission] by rule shall establish the grounds for denial, suspension, revocation, or reinstatement of a license issued under this chapter and the procedures for disciplinary action. A rule adopted under this subsection may not conflict with a rule adopted by the State Office of Administrative Hearings.

SECTION 8.2V.06. Section 2302.204, Occupations Code, is amended to read as follows:

Sec. 2302.204. CASUAL SALES. This chapter does not apply to a person who purchases fewer than three nonrepairable motor vehicles or salvage motor vehicles from a salvage vehicle dealer, an insurance company or salvage pool operator in a casual sale at auction, except that:

(1) the board [commission] shall adopt rules as necessary to regulate casual sales by salvage vehicle dealers, insurance companies, or salvage pool operators and to enforce this section; and

(2) a salvage vehicle dealer, insurance company, or salvage pool operator who sells a motor vehicle in a casual sale shall comply with those rules and Subchapter E, Chapter 501, Transportation Code.

PART 3. CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF

TRANSPORTATION IN OTHER CODES

SUBPART A. BUSINESS & COMMERCE CODE

SECTION 8.3A.01. Section 51.003(b), Business & Commerce Code, is amended to read as follows:

(b) In this chapter, "business opportunity" does not include:

(1) the sale or lease of an established and ongoing business or enterprise that has actively conducted business before the sale or lease, whether composed of one or more than one component business or enterprise, if the sale or lease represents an isolated transaction or series of transactions involving a bona fide change of ownership or control of the business or enterprise or liquidation of the business or enterprise;

(2) a sale by a retailer of goods or services under a contract or other agreement to sell the inventory of one or more ongoing leased departments to a purchaser who is granted the right to sell the goods or services within or adjoining a retail business establishment as a department or division of the retail business establishment;

(3) a transaction that is:

(A) regulated by the Texas Department of Licensing and Regulation, the Texas Department of Insurance, the Texas Real Estate Commission, or the director of the Motor Vehicle Division of the Texas Department of Motor Vehicles [Transportation]; and

(B) engaged in by a person licensed by one of those agencies;

(4) a real estate syndication;

(5) a sale or lease to a business enterprise that also sells or leases products, equipment, or supplies or performs services:

(A) that are not supplied by the seller; and

(B) that the purchaser does not use with the seller's products, equipment, supplies, or services;

(6) the offer or sale of a franchise as described by the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et seq.) and its subsequent amendments;

(7) the offer or sale of a business opportunity if the seller:

(A) has a net worth of $25 million or more according to the seller's audited balance sheet as of a date not earlier than the 13th month before the date of the transaction; or

(B) is at least 80 percent owned by another person who:

(i) in writing unconditionally guarantees performance by the person offering the business opportunity plan; and

(ii) has a net worth of more than $25 million according to the person's most recent audited balance sheet as of a date not earlier than the 13th month before the date of the transaction; or

(8) an arrangement defined as a franchise by 16 C.F.R. Section 436.2(a) and its subsequent amendments if:

(A) the franchisor complies in all material respects in this state with 16 C.F.R. Part 436 and each order or other action of the Federal Trade Commission; and

(B) before offering for sale or selling a franchise in this state, a person files with the secretary of state a notice containing:

(i) the name of the franchisor;

(ii) the name under which the franchisor intends to transact business; and

(iii) the franchisor's principal business address.

SECTION 8.3A.02. Section 105.004(b), Business & Commerce Code, is amended to read as follows:

(b) The Texas Department of Motor Vehicles [Transportation] shall provide a notice that states the provisions of this chapter to each person with a disability who is issued:

(1) license plates under Section 504.201, Transportation Code; or

(2) a disabled parking placard under Section 681.004, Transportation Code.

SUBPART B. CODE OF CRIMINAL PROCEDURE

SECTION 8.3B.01. Section 1(1), Article 42.22, Code of Criminal Procedure, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 8.3B.02. Article 59.04(c), Code of Criminal Procedure, is amended to read as follows:

(c) If the property is a motor vehicle, and if there is reasonable cause to believe that the vehicle has been registered under the laws of this state, the attorney representing the state shall ask the Texas Department of Motor Vehicles [Transportation] to identify from its records the record owner of the vehicle and any interest holder. If the addresses of the owner and interest holder are not otherwise known, the attorney representing the state shall request citation be served on such persons at the address listed with the Texas Department of Motor Vehicles [Transportation]. If the citation issued to such address is returned unserved, the attorney representing the state shall cause a copy of the notice of the seizure and intended forfeiture to be posted at the courthouse door, to remain there for a period of not less than 30 days. If the owner or interest holder does not answer or appear after the notice has been so posted, the court shall enter a judgment by default as to the owner or interest holder, provided that the attorney representing the state files a written motion supported by affidavit setting forth the attempted service. An owner or interest holder whose interest is forfeited in this manner shall not be liable for court costs. If the person in possession of the vehicle at the time of the seizure is not the owner or the interest holder of the vehicle, notification shall be provided to the possessor in the same manner specified for notification to an owner or interest holder.

SUBPART C. FAMILY CODE

SECTION 8.3C.01. Section 157.316(b), Family Code, is amended to read as follows:

(b) If a lien established under this subchapter attaches to a motor vehicle, the lien must be perfected in the manner provided by Chapter 501, Transportation Code, and the court or Title IV-D agency that rendered the order of child support shall include in the order a requirement that the obligor surrender to the court or Title IV-D agency evidence of the legal ownership of the motor vehicle against which the lien may attach. A lien against a motor vehicle under this subchapter is not perfected until the obligor's title to the vehicle has been surrendered to the court or Title IV-D agency and the Texas Department of Motor Vehicles [Transportation] has issued a subsequent title that discloses on its face the fact that the vehicle is subject to a child support lien under this subchapter.

SECTION 8.3C.02. Section 232.0022(a), Family Code, is amended to read as follows:

(a) The Texas Department of Motor Vehicles [Transportation] is the appropriate licensing authority for suspension or nonrenewal of a motor vehicle registration under this chapter.

SECTION 8.3C.03. Section 232.014(b), Family Code, is amended to read as follows:

(b) A fee collected by the Texas Department of Motor Vehicles [Transportation] or the Department of Public Safety shall be deposited to the credit of the state highway fund.

SECTION 8.3C.04. Section 264.502(b), Family Code, is amended to read as follows:

(b) The members of the committee who serve under Subsections (a)(1) through (3) shall select the following additional committee members:

(1) a criminal prosecutor involved in prosecuting crimes against children;

(2) a sheriff;

(3) a justice of the peace;

(4) a medical examiner;

(5) a police chief;

(6) a pediatrician experienced in diagnosing and treating child abuse and neglect;

(7) a child educator;

(8) a child mental health provider;

(9) a public health professional;

(10) a child protective services specialist;

(11) a sudden infant death syndrome family service provider;

(12) a neonatologist;

(13) a child advocate;

(14) a chief juvenile probation officer;

(15) a child abuse prevention specialist;

(16) a representative of the Department of Public Safety; and

(17) a representative of the Texas Department of Motor Vehicles [Transportation].

SUBPART D. FINANCE CODE

SECTION 8.3D.01. Section 306.001(9), Finance Code, is amended to read as follows:

(9) "Qualified commercial loan":

(A) means:

(i) a commercial loan in which one or more persons as part of the same transaction lends, advances, borrows, or receives, or is obligated to lend or advance or entitled to borrow or receive, money or credit with an aggregate value of:

(a) $3 million or more if the commercial loan is secured by real property; or

(b) $250,000 or more if the commercial loan is not secured by real property and, if the aggregate value of the commercial loan is less than $500,000, the loan documents contain a written certification from the borrower that:

(1) the borrower has been advised by the lender to seek the advice of an attorney and an accountant in connection with the commercial loan; and

(2) the borrower has had the opportunity to seek the advice of an attorney and accountant of the borrower's choice in connection with the commercial loan; and

(ii) a renewal or extension of a commercial loan described by Paragraph (A), regardless of the principal amount of the loan at the time of the renewal or extension; and

(B) does not include a commercial loan made for the purpose of financing a business licensed by the [Motor Vehicle Board of the] Texas Department of Motor Vehicles [Transportation] under Section 2301.251(a), Occupations Code.

SECTION 8.3D.02. Section 348.001(10-a), Finance Code, is amended to read as follows:

(10-a) "Towable recreation vehicle" means a nonmotorized vehicle that:

(A) was originally designed and manufactured primarily to provide temporary human habitation in conjunction with recreational, camping, or seasonal use;

(B) is titled and registered with the Texas Department of Motor Vehicles [Transportation] as a travel trailer through a county tax assessor-collector;

(C) is permanently built on a single chassis;

(D) contains at least one life support system; and

(E) is designed to be towable by a motor vehicle.

SECTION 8.3D.03. Section 348.518, Finance Code, is amended to read as follows:

Sec. 348.518. SHARING OF INFORMATION. To ensure consistent enforcement of law and minimization of regulatory burdens, the commissioner and the Texas Department of Motor Vehicles [Transportation] may share information, including criminal history information, relating to a person licensed under this chapter. Information otherwise confidential remains confidential after it is shared under this section.

SUBPART E. GOVERNMENT CODE

SECTION 8.3E.01. Section 411.122(d), Government Code, is amended to read as follows:

(d) The following state agencies are subject to this section:

(1) Texas Appraiser Licensing and Certification Board;

(2) Texas Board of Architectural Examiners;

(3) Texas Board of Chiropractic Examiners;

(4) State Board of Dental Examiners;

(5) Texas Board of Professional Engineers;

(6) Texas Funeral Service Commission;

(7) Texas Board of Professional Geoscientists;

(8) Department of State Health Services, except as provided by Section 411.110, and agencies attached to the department, including:

(A) Texas State Board of Examiners of Dietitians;

(B) Texas State Board of Examiners of Marriage and Family Therapists;

(C) Midwifery Board;

(D) Texas State Perfusionist Advisory Committee [Board of Examiners of Perfusionists];

(E) Texas State Board of Examiners of Professional Counselors;

(F) Texas State Board of Social Worker Examiners;

(G) State Board of Examiners for Speech-Language Pathology and Audiology;

(H) Advisory Board of Athletic Trainers;

(I) State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments;

(J) Texas Board of Licensure for Professional Medical Physicists; and

(K) Texas Board of Orthotics and Prosthetics;

(9) Texas Board of Professional Land Surveying;

(10) Texas Department of Licensing and Regulation, except as provided by Section 411.093;

(11) Texas Commission on Environmental Quality;

(12) Texas Board of Occupational Therapy Examiners;

(13) Texas Optometry Board;

(14) Texas State Board of Pharmacy;

(15) Texas Board of Physical Therapy Examiners;

(16) Texas State Board of Plumbing Examiners;

(17) Texas State Board of Podiatric Medical Examiners;

(18) Polygraph Examiners Board;

(19) Texas State Board of Examiners of Psychologists;

(20) Texas Real Estate Commission;

(21) Board of Tax Professional Examiners;

(22) Texas Department of Transportation;

(23) State Board of Veterinary Medical Examiners;

(24) Texas Department of Housing and Community Affairs;

(25) secretary of state;

(26) state fire marshal;

(27) Texas Education Agency; [and]

(28) Department of Agriculture; and

(29) Texas Department of Motor Vehicles.

SUBPART F. HEALTH AND SAFETY CODE

SECTION 8.3F.01. Section 382.209(e), Health and Safety Code, is amended to read as follows:

(e) A vehicle is not eligible to participate in a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program established under this section unless:

(1) the vehicle is capable of being operated;

(2) the registration of the vehicle:

(A) is current; and

(B) reflects that the vehicle has been registered in the county implementing the program for the 12 months preceding the application for participation in the program;

(3) the commissioners court of the county administering the program determines that the vehicle meets the eligibility criteria adopted by the commission, the Texas Department of Motor Vehicles [Transportation], and the Public Safety Commission;

(4) if the vehicle is to be repaired, the repair is done by a repair facility recognized by the Department of Public Safety, which may be an independent or private entity licensed by the state; and

(5) if the vehicle is to be retired under this subsection and Section 382.213, the replacement vehicle is a qualifying motor vehicle.

SECTION 8.3F.02. Section 382.210(f), Health and Safety Code, is amended to read as follows:

(f) In this section, "total cost" means the total amount of money paid or to be paid for the purchase of a motor vehicle as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Motor Vehicles [Transportation]. In a transaction that does not involve the use of that form, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Title if that form were involved.

SECTION 8.3F.03. Section 461.017(a), Health and Safety Code, is amended to read as follows:

(a) The Drug Demand Reduction Advisory Committee is composed of the following members:

(1) five representatives of the public from different geographic regions of the state who have knowledge and expertise in issues relating to reducing drug demand and who are appointed by the commissioner [executive director] of the Department of State Health Services [Texas Commission on Alcohol and Drug Abuse]; and

(2) one representative of each of the following agencies or offices who is appointed by the executive director or commissioner of the agency or office and who is directly involved in the agency's or office's policies, programs, or funding activities relating to reducing drug demand:

(A) the criminal justice division of the governor's office;

(B) the Criminal Justice Policy Council;

(C) the Department of Family and Protective [and Regulatory] Services;

(D) the Department of Public Safety of the State of Texas;

(E) the Health and Human Services Commission;

(F) the Texas Alcoholic Beverage Commission;

(G) the Department of State Health Services [Texas Commission on Alcohol and Drug Abuse];

(H) the Texas Council on Offenders with Mental Impairments;

(I) the Texas Department of Criminal Justice;

(J) the [Texas Department of] Health and[;

[(K) the Texas Department of] Human Services Commission;

(K) [(L)] the [Texas] Department of Aging and Disability Services [Mental Health and Mental Retardation];

(L) [(M)] the Texas Education Agency;

(M) [(N)] the Texas Juvenile Probation Commission;

(N) [(O)] the Texas Youth Commission;

(O) [(P)] the Department of Assistive and Rehabilitative Services [Texas Rehabilitation Commission];

(P) [(Q)] the Texas Workforce Commission;

(Q) [(R)] the Texas Department of Motor Vehicles [Transportation];

(R) [(S)] the comptroller of public accounts; and

(S) [(T)] the adjutant general's department.

SUBPART G. HUMAN RESOURCES CODE

SECTION 8.3G.01. Section 22.041, Human Resources Code, is amended to read as follows:

Sec. 22.041. THIRD-PARTY INFORMATION. Notwithstanding any other provision of this code, the department may use information obtained from a third party to verify the assets and resources of a person for purposes of determining the person's eligibility and need for medical assistance, financial assistance, or nutritional assistance. Third-party information includes information obtained from:

(1) a consumer reporting agency, as defined by Section 20.01, Business & Commerce Code;

(2) an appraisal district; or

(3) the Texas Department of Motor Vehicles [Transportation's] vehicle registration record database.

SECTION 8.3G.02. Section 32.026(g), Human Resources Code, is amended to read as follows:

(g) Notwithstanding any other provision of this code, the department may use information obtained from a third party to verify the assets and resources of a person for purposes of determining the person's eligibility and need for medical assistance. Third-party information includes information obtained from:

(1) a consumer reporting agency, as defined by Section 20.01, Business & Commerce Code;

(2) an appraisal district; or

(3) the Texas Department of Motor Vehicles [Transportation's] vehicle registration record database.

SUBPART H. LOCAL GOVERNMENT CODE

SECTION 8.3H.01. Section 130.006, Local Government Code, is amended to read as follows:

Sec. 130.006. PROCEDURES FOR COLLECTION OF DISHONORED CHECKS AND INVOICES. A county tax assessor-collector may establish procedures for the collection of dishonored checks and credit card invoices. The procedures may include:

(1) official notification to the maker that the check or invoice has not been honored and that the receipt, registration, certificate, or other instrument issued on the receipt of the check or invoice is not valid until payment of the fee or tax is made;

(2) notification of the sheriff or other law enforcement officers that a check or credit card invoice has not been honored and that the receipt, registration, certificate, or other instrument held by the maker is not valid; and

(3) notification to the Texas Department of Motor Vehicles [Transportation], the comptroller of public accounts, or the Department of Public Safety that the receipt, registration, certificate, or other instrument held by the maker is not valid.

SECTION 8.3H.02. Section 130.007, Local Government Code, is amended to read as follows:

Sec. 130.007. REMISSION TO STATE NOT REQUIRED; STATE ASSISTANCE IN COLLECTION. (a) If a fee or tax is required to be remitted to the comptroller or the Texas Department of Motor Vehicles [Transportation] and if payment was made to the county tax assessor-collector by a check that was not honored by the drawee bank or by a credit card invoice that was not honored by the credit card issuer, the amount of the fee or tax is not required to be remitted, but the assessor-collector shall notify the appropriate department of:

(1) the amount of the fee or tax;

(2) the type of fee or tax involved; and

(3) the name and address of the maker.

(b) The Texas Department of Motor Vehicles [Transportation] and the comptroller shall assist the county tax assessor-collector in collecting the fee or tax and may cancel or revoke any receipt, registration, certificate, or other instrument issued in the name of the state conditioned on the payment of the fee or tax.

SECTION 8.3H.03. Section 130.008, Local Government Code, is amended to read as follows:

Sec. 130.008. LIABILITY OF TAX COLLECTOR FOR VIOLATIONS OF SUBCHAPTER. If the comptroller or the Texas Department of Motor Vehicles [Transportation] determines that the county tax assessor-collector has accepted payment for fees and taxes to be remitted to that department in violation of Section 130.004 or that more than two percent of the fees and taxes to be received from the assessor-collector are not remitted because of the acceptance of checks that are not honored by the drawee bank or of credit card invoices that are not honored by the credit card issuer, the department may notify the assessor-collector that the assessor-collector may not accept a check or credit card invoice for the payment of any fee or tax to be remitted to that department. A county tax assessor-collector who accepts a check or credit card invoice for the payment of a fee or tax, after notice that the assessor-collector may not receive a check or credit card invoice for the payment of fees or taxes to be remitted to a department, is liable to the state for the amount of the check or credit card invoice accepted.

SECTION 8.3H.04. Section 130.009, Local Government Code, is amended to read as follows:

Sec. 130.009. STATE RULES. The comptroller and the Texas Department of Motor Vehicles [Transportation] may make rules concerning the acceptance of checks or credit card invoices by a county tax assessor-collector and for the collection of dishonored checks or credit card invoices.

SUBPART I. OCCUPATIONS CODE

SECTION 8.3I.01. Section 554.009(c), Occupations Code, is amended to read as follows:

(c) The board may register a vehicle with the Texas Department of Motor Vehicles [Transportation] in an alias name only for investigative personnel.

SUBPART J. PENAL CODE

SECTION 8.3J.01. Section 31.03(c), Penal Code, is amended to read as follows:

(c) For purposes of Subsection (b):

(1) evidence that the actor has previously participated in recent transactions other than, but similar to, that which the prosecution is based is admissible for the purpose of showing knowledge or intent and the issues of knowledge or intent are raised by the actor's plea of not guilty;

(2) the testimony of an accomplice shall be corroborated by proof that tends to connect the actor to the crime, but the actor's knowledge or intent may be established by the uncorroborated testimony of the accomplice;

(3) an actor engaged in the business of buying and selling used or secondhand personal property, or lending money on the security of personal property deposited with the actor, is presumed to know upon receipt by the actor of stolen property (other than a motor vehicle subject to Chapter 501, Transportation Code) that the property has been previously stolen from another if the actor pays for or loans against the property $25 or more (or consideration of equivalent value) and the actor knowingly or recklessly:

(A) fails to record the name, address, and physical description or identification number of the seller or pledgor;

(B) fails to record a complete description of the property, including the serial number, if reasonably available, or other identifying characteristics; or

(C) fails to obtain a signed warranty from the seller or pledgor that the seller or pledgor has the right to possess the property. It is the express intent of this provision that the presumption arises unless the actor complies with each of the numbered requirements;

(4) for the purposes of Subdivision (3)(A), "identification number" means driver's license number, military identification number, identification certificate, or other official number capable of identifying an individual;

(5) stolen property does not lose its character as stolen when recovered by any law enforcement agency;

(6) an actor engaged in the business of obtaining abandoned or wrecked motor vehicles or parts of an abandoned or wrecked motor vehicle for resale, disposal, scrap, repair, rebuilding, demolition, or other form of salvage is presumed to know on receipt by the actor of stolen property that the property has been previously stolen from another if the actor knowingly or recklessly:

(A) fails to maintain an accurate and legible inventory of each motor vehicle component part purchased by or delivered to the actor, including the date of purchase or delivery, the name, age, address, sex, and driver's license number of the seller or person making the delivery, the license plate number of the motor vehicle in which the part was delivered, a complete description of the part, and the vehicle identification number of the motor vehicle from which the part was removed, or in lieu of maintaining an inventory, fails to record the name and certificate of inventory number of the person who dismantled the motor vehicle from which the part was obtained;

(B) fails on receipt of a motor vehicle to obtain a certificate of authority, sales receipt, or transfer document as required by Chapter 683, Transportation Code, or a certificate of title showing that the motor vehicle is not subject to a lien or that all recorded liens on the motor vehicle have been released; or

(C) fails on receipt of a motor vehicle to immediately remove an unexpired license plate from the motor vehicle, to keep the plate in a secure and locked place, or to maintain an inventory, on forms provided by the Texas Department of Motor Vehicles [Transportation], of license plates kept under this paragraph, including for each plate or set of plates the license plate number and the make, motor number, and vehicle identification number of the motor vehicle from which the plate was removed;

(7) an actor who purchases or receives a used or secondhand motor vehicle is presumed to know on receipt by the actor of the motor vehicle that the motor vehicle has been previously stolen from another if the actor knowingly or recklessly:

(A) fails to report to the Texas Department of Motor Vehicles [Transportation] the failure of the person who sold or delivered the motor vehicle to the actor to deliver to the actor a properly executed certificate of title to the motor vehicle at the time the motor vehicle was delivered; or

(B) fails to file with the county tax assessor-collector of the county in which the actor received the motor vehicle, not later than the 20th day after the date the actor received the motor vehicle, the registration license receipt and certificate of title or evidence of title delivered to the actor in accordance with Subchapter D, Chapter 520, Transportation Code, at the time the motor vehicle was delivered;

(8) an actor who purchases or receives from any source other than a licensed retailer or distributor of pesticides a restricted-use pesticide or a state-limited-use pesticide or a compound, mixture, or preparation containing a restricted-use or state-limited-use pesticide is presumed to know on receipt by the actor of the pesticide or compound, mixture, or preparation that the pesticide or compound, mixture, or preparation has been previously stolen from another if the actor:

(A) fails to record the name, address, and physical description of the seller or pledgor;

(B) fails to record a complete description of the amount and type of pesticide or compound, mixture, or preparation purchased or received; and

(C) fails to obtain a signed warranty from the seller or pledgor that the seller or pledgor has the right to possess the property; and

(9) an actor who is subject to Section 409, Packers and Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from a commission merchant by representing that the actor will make prompt payment is presumed to have induced the commission merchant's consent by deception if the actor fails to make full payment in accordance with Section 409, Packers and Stockyards Act (7 U.S.C. Section 228b).

SECTION 8.3J.02. Section 31.11(b), Penal Code, is amended to read as follows:

(b) It is an affirmative defense to prosecution under this section that the person was:

(1) the owner or acting with the effective consent of the owner of the property involved;

(2) a peace officer acting in the actual discharge of official duties; or

(3) acting with respect to a number assigned to a vehicle by the Texas Department of Transportation or the Texas Department of Motor Vehicles, as applicable, and the person was:

(A) in the actual discharge of official duties as an employee or agent of the department; or

(B) in full compliance with the rules of the department as an applicant for an assigned number approved by the department.

SUBPART K. TAX CODE

SECTION 8.3K.01. Section 21.02(d), Tax Code, is amended to read as follows:

(d) A motor vehicle does not have taxable situs in a taxing unit under Subsection (a)(1) if, on January 1, the vehicle:

(1) has been located for less than 60 days at a place of business of a person who holds a wholesale motor vehicle auction general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under Chapter 503, Transportation Code, for that place of business; and

(2) is offered for resale.

SECTION 8.3K.02. Section 22.04(d), Tax Code, is amended to read as follows:

(d) This section does not apply to a motor vehicle that on January 1 is located at a place of business of a person who holds a wholesale motor vehicle auction general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under Chapter 503, Transportation Code, for that place of business, and that:

(1) has not acquired taxable situs under Section 21.02(a)(1) in a taxing unit that participates in the appraisal district because the vehicle is described by Section 21.02(d);

(2) is offered for sale by a dealer who holds a dealer's general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under Chapter 503, Transportation Code, and whose inventory of motor vehicles is subject to taxation in the manner provided by Sections 23.121 and 23.122; or

(3) is collateral possessed by a lienholder and offered for sale in foreclosure of a security interest.

SECTION 8.3K.03. Sections 23.121(a)(3), (11), and (14), Tax Code, are amended to read as follows:

(3) "Dealer" means a person who holds a dealer's general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under the authority of Chapter 503, Transportation Code, or who is legally recognized as a motor vehicle dealer pursuant to the law of another state and who complies with the terms of Section 152.063(f). The term does not include:

(A) a person who holds a manufacturer's license issued under Chapter 2301, Occupations Code [by the Motor Vehicle Board of the Texas Department of Transportation];

(B) an entity that is owned or controlled by a person who holds a manufacturer's license issued under Chapter 2301, Occupations Code [by the Motor Vehicle Board of the Texas Department of Transportation]; or

(C) a dealer whose general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under the authority of Chapter 503, Transportation Code, prohibits the dealer from selling a vehicle to any person except a dealer.

(11) "Sales price" means the total amount of money paid or to be paid for the purchase of a motor vehicle as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Motor Vehicles [Transportation]. In a transaction that does not involve the use of that form, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Title if that form were involved.

(14) "Towable recreational vehicle" means a nonmotorized vehicle that is designed for temporary human habitation for recreational, camping, or seasonal use and:

(A) is titled and registered with the Texas Department of Motor Vehicles [Transportation] through the office of the collector;

(B) is permanently built on a single chassis;

(C) contains one or more life support systems; and

(D) is designed to be towable by a motor vehicle.

SECTION 8.3K.04. Sections 23.121(f), (g), and (h), Tax Code, are amended to read as follows:

(f) The comptroller shall promulgate a form entitled Dealer's Motor Vehicle Inventory Declaration. Except as provided by Section 23.122(l) [of this code], not later than February 1 of each year, or, in the case of a dealer who was not in business on January 1, not later than 30 days after commencement of business, each dealer shall file a declaration with the chief appraiser and file a copy with the collector. For purposes of this subsection, a dealer is presumed to have commenced business on the date of issuance to the dealer of a dealer's general distinguishing number as provided by Chapter 503, Transportation Code. Notwithstanding the presumption created by this subsection, a chief appraiser may, at his or her sole discretion, designate as the date on which a dealer commenced business a date other than the date of issuance to the dealer of a dealer's general distinguishing number. The declaration is sufficient to comply with this subsection if it sets forth the following information:

(1) the name and business address of each location at which the dealer owner conducts business;

(2) each of the dealer's general distinguishing numbers issued by the Texas Department of Motor Vehicles [Transportation];

(3) a statement that the dealer owner is the owner of a dealer's motor vehicle inventory; and

(4) the market value of the dealer's motor vehicle inventory for the current tax year as computed under Section 23.121(b) [of this code].

(g) Under the terms provided by this subsection, the chief appraiser may examine the books and records of the holder of a general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation]. A request made under this subsection must be made in writing, delivered personally to the custodian of the records, at the location for which the general distinguishing number has been issued, must provide a period not less than 15 days for the person to respond to the request, and must state that the person to whom it is addressed has the right to seek judicial relief from compliance with the request. In a request made under this section the chief appraiser may examine:

(1) the document issued by the Texas Department of Motor Vehicles [Transportation] showing the person's general distinguishing number;

(2) documentation appropriate to allow the chief appraiser to ascertain the applicability of this section and Section 23.122 [of this code] to the person;

(3) sales records to substantiate information set forth in the dealer's declaration filed by the person.

(h) If a dealer fails to file a declaration as required by this section, or if, on the declaration required by this section, a dealer reports the sale of fewer than five motor vehicles in the prior year, the chief appraiser shall report that fact to the Texas Department of Motor Vehicles [Transportation] and the department shall initiate termination proceedings. The chief appraiser shall include with the report a copy of a declaration, if any, indicating the sale by a dealer of fewer than five motor vehicles in the prior year. A report by a chief appraiser to the Texas Department of Motor Vehicles [Transportation] as provided by this subsection is prima facie grounds for the cancellation of the dealer's general distinguishing number under Section 503.038(a)(9), Transportation Code, or for refusal by the Texas Department of Motor Vehicles [Transportation] to renew the dealer's general distinguishing number.

SECTION 8.3K.05. Section 23.123(c), Tax Code, is amended to read as follows:

(c) Information made confidential by this section may be disclosed:

(1) in a judicial or administrative proceeding pursuant to a lawful subpoena;

(2) to the person who filed the declaration or statement or to that person's representative authorized by the person in writing to receive the information;

(3) to the comptroller or an employee of the comptroller authorized by the comptroller to receive the information;

(4) to a collector or chief appraiser;

(5) to a district attorney, criminal district attorney or county attorney involved in the enforcement of a penalty imposed pursuant to Section 23.121 or Section 23.122 [of this code];

(6) for statistical purposes if in a form that does not identify specific property or a specific property owner;

(7) if and to the extent that the information is required for inclusion in a public document or record that the appraisal or collection office is required by law to prepare or maintain; or

(8) to the Texas Department of Motor Vehicles [Transportation] for use by that department in auditing compliance of its licensees with appropriate provisions of applicable law.

SECTION 8.3K.06. Section 23.124(a)(11), Tax Code, is amended to read as follows:

(11) "Sales price" means the total amount of money paid or to be paid for the purchase of:

(A) a vessel, other than a trailer that is treated as a vessel, as set forth as "sales price" in the form entitled "Application for Texas Certificate of Number/Title for Boat/Seller, Donor or Trader's Affidavit" promulgated by the Parks and Wildlife Department;

(B) an outboard motor as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title for an Outboard Motor/Seller, Donor or Trader's Affidavit" promulgated by the Parks and Wildlife Department; or

(C) a trailer that is treated as a vessel as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Motor Vehicles [Transportation].

In a transaction involving a vessel, an outboard motor, or a trailer that is treated as a vessel that does not involve the use of one of these forms, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Number/Title for Boat/Seller, Donor or Trader's Affidavit, the Application for Texas Certificate of Title for an Outboard Motor/Seller, Donor or Trader's Affidavit, or the Application for Texas Certificate of Title if one of these forms were involved.

SECTION 8.3K.07. Section 113.011, Tax Code, is amended to read as follows:

Sec. 113.011. LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR VEHICLES [TRANSPORTATION]. The comptroller shall furnish to the Texas Department of Motor Vehicles [Transportation] each release of a tax lien filed by the comptroller with that department.

SECTION 8.3K.08. Sections 152.0412(a) and (f), Tax Code, are amended to read as follows:

(a) In this section, "standard presumptive value" means the private-party transaction value of a motor vehicle, as determined by the Texas Department of Motor Vehicles [Transportation] based on an appropriate regional guidebook of a nationally recognized motor vehicle value guide service, or based on another motor vehicle guide publication that the department determines is appropriate if a private-party transaction value for the motor vehicle is not available from a regional guidebook described by this subsection.

(f) The Texas Department of Motor Vehicles [Transportation] shall maintain information on the standard presumptive values of motor vehicles as part of the department's registration and title system. The department shall update the information at least quarterly each calendar year and publish, electronically or otherwise, the updated information.

SECTION 8.3K.09. Section 152.042, Tax Code, is amended to read as follows:

Sec. 152.042. COLLECTION OF TAX ON METAL DEALER PLATES. A person required to pay the tax imposed by Section 152.027 shall pay the tax to the Texas Department of Motor Vehicles [Transportation], and the department may not issue the metal dealer's plates until the tax is paid.

SECTION 8.3K.10. Section 152.121(b), Tax Code, is amended to read as follows:

(b) Taxes on metal dealer plates collected by the Texas Department of Motor Vehicles [Transportation] shall be deposited by the department in the state treasury in the same manner as are other taxes collected under this chapter.

SECTION 8.3K.11. Section 162.001(52), Tax Code, is amended to read as follows:

(52) "Registered gross weight" means the total weight of the vehicle and carrying capacity shown on the registration certificate issued by the Texas Department of Motor Vehicles [Transportation].

PART 4. TRANSFERS OF CERTAIN POWERS, DUTIES, OBLIGATIONS, AND

RIGHTS OF ACTION

SECTION 8.4.01. (a) All powers, duties, obligations, and rights of action of the Motor Carrier Division, the Motor Vehicle Division, and the Vehicle Titles and Registration Division of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles, and all powers, duties, obligations, and rights of action of the Texas Transportation Commission in connection or associated with those divisions of the Texas Department of Transportation are transferred to the board of the Texas Department of Motor Vehicles on December 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the personnel, furniture, computers, other property and equipment, files, and related materials used by the Motor Carrier Division, the Motor Vehicle Division, and the Vehicle Titles and Registration Division of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Motor Carrier Division, the Motor Vehicle Division, or the Vehicle Titles and Registration Division of the Texas Department of Transportation that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Motor Carrier Division, the Motor Vehicle Division, or the Vehicle Titles and Registration Division of the Texas Department of Transportation that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles.

(e) A rule adopted by the Texas Transportation Commission or the director of the Texas Department of Transportation in connection with or relating to the Motor Carrier Division, the Motor Vehicle Division, or the Vehicle Titles and Registration Division of that department continues in effect until it is amended or repealed by the board of the Texas Department of Motor Vehicles.

(f) The unobligated and unexpended balance of any appropriations made to the Texas Department of Transportation in connection with or relating to the Motor Carrier Division, the Motor Vehicle Division, and the Vehicle Titles and Registration Division of that department for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 8.4.02. The Transportation Legislative Oversight Committee shall oversee the coordination and collaboration between the Texas Department of Transportation and the Texas Department of Motor Vehicles during the transitions required by Section 8.4.01 of this article.

PART 5. APPOINTMENT OF BOARD

SECTION 8.5.01. Not later than December 1, 2009, the governor shall appoint the members of the board of the Texas Department of Motor Vehicles in accordance with Subchapter B, Chapter 1001, Transportation Code, as added by this article.

ARTICLE 9. RAIL TRANSPORTATION DIVISION

SECTION 9.01. 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 9.02. 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 distributed by the department, including money from 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, political subdivisions, and private entities to continue the development of rail transportation facilities and services in this state.

SECTION 9.03. Subtitle I, Title 5, Transportation Code, is amended by adding Chapter 175 to read as follows:

CHAPTER 175. BORDER REGION HIGHER-SPEED RAIL AUTHORITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 175.001. DEFINITIONS. In this chapter:

(1) "Authority" means a border region higher-speed rail authority created under this chapter.

(2) "Authority property" means all property an authority owns or leases under a long-term lease.

(3) "Board" means an authority's board of directors.

(4) "Border region" means the Texas-Louisiana border region or the Texas-Mexico border region, as defined by Section 2056.002, Government Code.

(5) "Commission" means the Texas Transportation Commission.

(6) "Department" means the Texas Department of Transportation.

(7) "Director" means a board member.

(8) "Higher-speed rail" means the rail technology that permits the operation of rolling stock between scheduled stops at speeds greater than 70 miles per hour but less than 110 miles per hour.

(9) "Higher-speed rail facility" means any property necessary for the transportation of passengers and baggage between points in a border region by higher-speed rail. The term includes rolling stock, locomotives, stations, parking areas, and rail lines.

(10) "System" means all of the higher-speed rail and intermodal facilities leased or owned by or operated on behalf of an authority.

[Sections 175.002-175.050 reserved for expansion]

SUBCHAPTER B. CREATION

Sec. 175.051. CREATION OF AUTHORITIES. The commission by order may authorize the creation of an authority in each border region for the purposes of financing, acquiring property for, constructing, maintaining, operating, and improving a higher-speed rail system in each border region.

[Sections 175.052-175.100 reserved for expansion]

SUBCHAPTER C. GOVERNANCE

Sec. 175.101. COMPOSITION OF BOARDS. (a) The governing body of an authority in the Texas-Louisiana border region is a board of seven directors consisting of:

(1) the county judges of the five most populous counties in the region; and

(2) two directors selected by the county judges to represent the remaining counties in the region.

(b) The governing body of an authority in the Texas-Mexico border region is a board of 11 directors consisting of:

(1) the county judges of the seven most populous counties in the region; and

(2) four directors selected by the county judges to represent the remaining counties in the region.

Sec. 175.102. PRESIDING OFFICER. (a) The directors shall elect one director as presiding officer.

(b) The presiding officer may select another director to preside in the absence of the presiding officer.

Sec. 175.103. MEETINGS. The presiding officer shall call at least one meeting of the board each year and may call other meetings as the presiding officer determines are appropriate.

Sec. 175.104. COMPENSATION; REIMBURSEMENT. A director is not entitled to compensation for serving as a director but is entitled to reimbursement for reasonable expenses incurred while serving as a director.

Sec. 175.105. RULES FOR PROCEEDINGS. The board shall adopt rules for its proceedings and appoint an executive committee.

Sec. 175.106. EMPLOYEES. The board may employ and compensate persons to carry out the powers and duties of the authority.

Sec. 175.107. CONFLICTS OF INTEREST. Chapter 171, Local Government Code, applies to a director.

[Sections 175.108-175.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES OF AUTHORITY

Sec. 175.151. NATURE OF AUTHORITY. (a) An authority is a public body and a political subdivision of the state exercising public and essential governmental functions.

(b) An authority, in the exercise of powers under this chapter, is performing only governmental functions and is a governmental unit within the meaning of Chapter 101, Civil Practice and Remedies Code.

Sec. 175.152. GENERAL POWERS OF AUTHORITY. An authority has all the powers necessary or convenient to carry out the purposes of this chapter.

Sec. 175.153. SUNSET REVIEW. An authority is subject every 12th year to review under Chapter 325, Government Code (Texas Sunset Act).

Sec. 175.154. SUITS. (a) An authority may:

(1) sue and be sued;

(2) institute and prosecute suits without giving security for costs; and

(3) appeal from a judgment without giving a supersedeas or cost bond.

(b) An action at law or in equity against an authority must be brought in the county in which a principal office of the authority is located, except that in an eminent domain proceeding involving an interest in land, suit must be brought in the county in which the land is located.

Sec. 175.155. POWERS RELATED TO DISTRICT PROPERTY. An authority may acquire by grant, purchase, gift, devise, lease, or otherwise and may hold, use, sell, lease, or dispose of real and personal property, licenses, patents, rights, and interests necessary, convenient, or useful for the full exercise of its powers.

Sec. 175.156. GENERAL AUTHORITY OVER HIGHER-SPEED RAIL FACILITIES. An authority may acquire, construct, develop, own, operate, maintain, and improve intermodal and higher-speed rail facilities to connect political subdivisions in the applicable border region.

Sec. 175.157. USE AND ALTERATION OF PROPERTY OF ANOTHER POLITICAL SUBDIVISION. (a) For a purpose described by Section 175.156, as necessary or useful in the construction, reconstruction, repair, maintenance, operation, and improvement of the system, and with the consent of a municipality, county, or other political subdivision, an authority may:

(1) use streets, alleys, roads, highways, and other public ways of the municipality, county, or other political subdivision; and

(2) relocate, raise, reroute, change the grade of, or alter, at the authority's expense, the construction of any publicly owned or privately owned street, alley, highway, road, railroad, electric line or facility, telegraph or telephone property and facility, pipeline or facility, conduit or facility, and other property.

(b) An authority may not use or alter:

(1) a road or highway that is part of the state highway system without the permission of the commission; or

(2) a railroad without permission of the railroad.

Sec. 175.158. ACQUISITION OF PROPERTY. (a) An authority may purchase any interest in real property to acquire, construct, operate, or improve a higher-speed rail facility on terms and at a price to which the authority and the owner agree.

(b) The governing body of a municipality, a county, any other political subdivision, or a public agency may convey the title or the rights and easements to any property needed by an authority for its purposes in connection with the acquisition, construction, operation, or improvement of the system.

Sec. 175.159. EMINENT DOMAIN. (a) An authority may exercise the power of eminent domain to acquire:

(1) real property in fee simple; or

(2) an interest in real property less than fee simple in, on, under, or above land, including an easement, right-of-way, or right of use of airspace or subsurface space.

(b) The power of eminent domain under this section does not apply to:

(1) land under the jurisdiction of the department; or

(2) a rail line owned by a common carrier or municipality.

(c) To the extent possible, an authority shall use existing rail or intermodal transportation corridors for the alignment of its system.

(d) An eminent domain proceeding is begun by the board's adoption of a resolution declaring that the authority's acquisition of the property or interest described in the resolution:

(1) is a public necessity; and

(2) is necessary and proper for the construction, extension, improvement, or development of higher-speed rail facilities and is in the public interest.

(e) The resolution is conclusive evidence of the public necessity of the proposed acquisition and that the real property or interest in property is necessary for public use.

(f) With the consent of the property owner, instead of paying for real property with a single fixed payment, an authority may pay the owner in the form of:

(1) an intangible legal right to receive a percentage of identified fees related to the applicable segment of the system; or

(2) an exclusive or nonexclusive right to use or operate a part of the system.

Sec. 175.160. AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE. An authority may:

(1) make agreements with a public utility, private utility, communication system, common carrier, state agency, or transportation system for the joint use of facilities, installations, or properties inside or outside the border region; and

(2) establish through routes and joint fares.

Sec. 175.161. RULES. To protect the health, safety, and general welfare of residents of the border region and people who use the authority's services, an authority may adopt rules to govern the operation of the authority, its employees, the system, service provided by the authority, and any other necessary matter concerning its purposes, including rules relating to health, safety, alcohol or beverage service, food service, and telephone and utility services.

Sec. 175.162. JOINT OWNERSHIP AGREEMENTS. An authority may enter into a joint ownership agreement with any person.

Sec. 175.163. COMPENSATION FOR USE OF SYSTEM FACILITIES. (a) An authority shall establish and maintain reasonable and nondiscriminatory rates or other compensation for the use of the facilities of the system acquired, constructed, operated, regulated, or maintained by the authority.

(b) Together with grants received by the authority, the rates or other compensation must be sufficient to produce revenues adequate to:

(1) pay all expenses necessary for the operation and maintenance of the properties and facilities of the authority;

(2) pay the interest on and principal of bonds issued by the authority and payable in whole or in part from the revenues, as they become due and payable; and

(3) comply with the terms of an agreement made with the holders of bonds or with any person in their behalf.

Sec. 175.164. AGREEMENTS GENERALLY. An authority may make contracts, leases, and agreements with, and accept grants and loans from, the United States, this state, agencies and political subdivisions of this state or another state of the United States, the United Mexican States, or a state of the United Mexican States, and other persons and entities and may perform any act necessary for the full exercise of the powers vested in it.

Sec. 175.165. INTERLOCAL AGREEMENTS WITH COMMISSION. The commission may enter into an interlocal agreement with an authority under which the authority may exercise a power or duty of the commission for the development and efficient operation of an intermodal corridor in the applicable border region.

Sec. 175.166. ACQUISITION OF ROLLING STOCK AND OTHER PROPERTY. An authority may acquire rolling stock or other property under conditional sales contracts, leases, equipment trust certificates, or any other form of contract or trust agreement.

Sec. 175.167. LIMIT ON POWER. A revenue bond indenture may limit the exercise of the powers granted by this subchapter, and a limit applies as long as the revenue bonds issued under the indenture are outstanding and unpaid.

Sec. 175.168. RULES GOVERNING SYSTEM AND ROUTINGS. An authority by resolution may adopt rules governing the use, operation, and maintenance of the system and may determine all routings and change them as the board considers advisable.

Sec. 175.169. OPERATION OR USE CONTRACTS. (a) An authority may:

(1) lease all or part of the higher-speed rail facilities to an operator; or

(2) contract for the use or operation of all or part of the higher-speed rail facilities by an operator.

(b) To the maximum extent practicable, an authority shall encourage the participation of private enterprise in the operation of higher-speed rail facilities.

(c) The term of an operating contract under this section may not exceed 20 years.

Sec. 175.170. RAIL TRANSPORTATION SERVICES AGREEMENTS WITH OTHER POLITICAL SUBDIVISIONS. An authority may contract with a county or other political subdivision of this state for the authority to provide higher-speed rail transportation services to an area outside the border region on the terms and conditions to which the parties agree.

[Sections 175.171-175.200 reserved for expansion]

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 175.201. PURCHASE OF ADDITIONAL INSURED PROVISIONS. An authority may purchase an additional insured provision to any liability insurance contract.

Sec. 175.202. FISCAL YEAR. Unless the board changes the fiscal year, the fiscal year of an authority ends September 30.

Sec. 175.203. ANNUAL BUDGET. (a) Before beginning the operation of higher-speed rail facilities, the board shall adopt an annual operating budget specifying the authority's anticipated revenues and expenses for the remainder of the fiscal year. The board shall adopt an operating budget for each succeeding fiscal year.

(b) The board shall hold a public hearing before adopting a budget other than the initial budget. Notice of each hearing must be published at least seven days before the date of the hearing in a newspaper of general circulation in each county in the applicable border region.

(c) A budget may be amended at any time if notice of the proposed amendment is given in the notice of the meeting.

(d) An expenditure that is not budgeted may not be made.

Sec. 175.204. RETIREMENT BENEFITS. An authority is eligible to participate in the Texas County and District Retirement System.

Sec. 175.205. DEPOSITORY. (a) The board by resolution shall name one or more banks for the deposit of authority funds.

(b) Authority funds are public funds and may be invested in securities permitted by Chapter 2256, Government Code.

(c) To the extent funds of an authority are not insured by the Federal Deposit Insurance Corporation or its successor, they shall be collateralized in the manner provided for county funds.

Sec. 175.206. AGREEMENTS RELATED TO FOREIGN AND DOMESTIC CURRENCY. (a) To provide tax benefits to another party that are available with respect to property under the laws of a foreign country or to encourage private investment with a transportation authority in the United States, and notwithstanding any other provision of this chapter, an authority may enter into and execute, as it considers appropriate, contracts, agreements, notes, security agreements, conveyances, bills of sale, deeds, leases as lessee or lessor, and currency hedges, swap transactions, or agreements relating to foreign and domestic currency.

(b) The agreements or instruments may have the terms, maturities, duration, provisions as to governing law, indemnities, and other provisions that are approved by the board.

(c) In connection with any transaction authorized by this section, the authority shall deposit in trust, escrow, or similar arrangement cash or lawful investments or securities, or shall enter into one or more payment agreements, financial guarantees, or insurance contracts that, by their terms, including interest to be earned on any cash or securities, are sufficient in amount to pay when due all amounts required to be paid by the authority as rent over the full term of the transaction plus any optional purchase price due under the transaction. A counterparty to a payment agreement, financial guarantee, or insurance contract under this subsection must have either a corporate credit or debt rating in any form, a claims-paying ability, or a rating for financial strength of "AA" or better by Moody's Investors Service, Inc., or by Standard & Poor's Corporation or "A-" or better by BEST's rating system.

(d) A certification in advance by an independent financial expert, banker, or certified public accountant, who is not an employee of the authority, certifying compliance with this requirement constitutes conclusive evidence of compliance. Property sold, acquired, or otherwise transferred under this section is considered for all purposes to be property owned and held by the authority and used for public purposes.

[Sections 175.207-175.300 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 175.301. REVENUE BONDS. An authority may issue revenue bonds and notes in amounts the board considers necessary or appropriate for the acquisition, purchase, construction, reconstruction, repair, equipping, improvement, or extension of the authority's higher-speed rail facilities.

Sec. 175.302. SECURITY FOR PAYMENT OF BONDS. (a) To secure the payment of a bond or note, an authority may:

(1) encumber and pledge all or any part of the revenues of its higher-speed rail facilities;

(2) mortgage and encumber all or part of the property of the higher-speed rail facilities and any thing pertaining to them that is acquired or to be acquired; and

(3) prescribe the terms and provisions of the bond or note in any manner not inconsistent with this chapter.

(b) Unless prohibited by the resolution or indenture relating to outstanding bonds or notes, an authority may encumber separately any item of property.

Sec. 175.303. BONDS AND NOTES AS AUTHORIZED INVESTMENTS AND SECURITY FOR DEPOSITS OF PUBLIC FUNDS. (a) Bonds and notes are legal and authorized investments for:

(1) a bank;

(2) a trust company;

(3) a savings and loan association; and

(4) an insurance company.

(b) The bonds and notes are:

(1) eligible to secure the deposit of public funds of this state or a municipality, county, school district, or other political corporation or subdivision of this state; and

(2) lawful and sufficient security for the deposits to the extent of the principal amount or market value of the bonds and notes, whichever is less.

Sec. 175.304. AWARDING CONSTRUCTION OR PURCHASE CONTRACTS. (a) A contract in the amount of more than $15,000 for the construction of improvements or the purchase of material, machinery, equipment, supplies, or any other property other than real property may be let only through competitive bidding after notice is published, at least 15 days before the date set for receiving bids, in a newspaper of general circulation in each county in the applicable border region.

(b) The board may adopt rules governing the taking of bids and the awarding of contracts.

(c) This section does not apply to:

(1) personal or professional services;

(2) the acquisition of an existing rail transportation system; or

(3) a contract with a common carrier to construct lines or to operate higher-speed rail service on lines wholly or partly owned by the carrier.

[Sections 175.305-175.350 reserved for expansion]

SUBCHAPTER G. TAXES

Sec. 175.351. TAX EXEMPTION. Authority property, material purchases, revenues, and income and the interest on a bond or note issued by an authority are exempt from all taxes imposed by this state or a political subdivision of this state.

Sec. 175.352. SALES AND USE TAX IMPOSED. A sales and use tax is imposed on items sold on authority property.

Sec. 175.353. TAX RATE. The sales and use tax imposed under Section 175.352 shall be imposed at the rate of the highest combination of local sales and use taxes imposed at the time of the authority's creation in any local governmental jurisdiction in the applicable border region.

Sec. 175.354. ABOLITION OF OTHER TAXES. All other local sales and use taxes that would otherwise be imposed on authority property are abolished by the imposition of the tax under Section 175.352.

Sec. 175.355. DUTY OF COMPTROLLER. The comptroller shall:

(1) administer, collect, and enforce the tax imposed under Section 175.352; and

(2) remit to the authority the local sales and use tax collected on the authority's property.

Sec. 175.356. APPLICABILITY OF TAX CODE. Chapter 321, Tax Code, governs the computation, administration, governance, and use of the tax except as inconsistent with this chapter.

Sec. 175.357. NOTICE TO COMPTROLLER. (a) An authority shall notify the comptroller in writing by registered or certified mail of the authority's creation and of its intent to impose the sales and use tax under Section 175.352.

(b) The authority shall provide to the comptroller all information required to implement the tax, including:

(1) an adequate map showing the property boundaries of the authority; and

(2) a certified copy of the resolution of the authority board adopting the tax.

(c) Not later than the 30th day after the date the comptroller receives the notice, map, and other information, the comptroller shall inform the authority of whether the comptroller is prepared to administer the tax.

Sec. 175.358. NOTICE TO LOCAL GOVERNMENTS. At the same time an authority notifies the comptroller under Section 175.357, the authority shall:

(1) notify each affected local governmental unit of the authority's creation; and

(2) provide each with an adequate map showing the property boundaries of the authority.

Sec. 175.359. ACQUISITION OF ADDITIONAL TERRITORY SUBJECT TO TAX. (a) Not later than the 30th day after the date an authority adds territory to the authority, the authority shall notify the comptroller and each affected local governmental unit of the addition.

(b) The authority must include with each notification:

(1) an adequate map showing the new boundaries of the authority; and

(2) the date the additional territory was added.

(c) Not later than the 30th day after the date the comptroller receives the notice under this section, the comptroller shall inform the authority of whether the comptroller is prepared to administer the tax imposed under Section 175.352 in the additional territory.

Sec. 175.360. EFFECTIVE DATE OF TAX. A tax imposed under Section 175.352 or the abolition of a tax under Section 175.354 takes effect on the first day of the first complete calendar quarter that occurs after the expiration of the first complete calendar quarter that occurs after the date the comptroller receives a notice of the action as required by this subchapter.

ARTICLE 10. ELECTRONIC SIGNS

SECTION 10.01. 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:

(1) traffic incidents;

(2) weather conditions, including severe weather advisories;

(3) an abducted child for whom the statewide alert system authorized by Subchapter L, Chapter 411, Government Code, has been activated;

(4) a missing senior citizen for whom a statewide silver alert authorized by Subchapter M, Chapter 411, Government Code, has been activated;

(5) the availability of gas, food, lodging, or pharmacy services or other relevant information during an evacuation or after an order declaring a state of disaster under Chapter 418, Government Code;

(6) road construction; and

(7) alternative routes.

(c) Not later than June 1, 2010, the department shall explore implementing a system of changeable message signs along designated evacuation routes. This subsection expires September 1, 2011.

ARTICLE 11. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY

SECTION 11.01. Section 1(3), Article 4413(37), Revised Statutes, is amended to read as follows:

(3) "Office" ["Department"] means the office of the governor [Texas Department of Transportation].

SECTION 11.02. Section 2, Article 4413(37), Revised Statutes, is amended to read as follows:

Sec. 2. ESTABLISHMENT OF AUTHORITY. The Automobile Burglary and Theft Prevention Authority is established in the office of the governor [Texas Department of Transportation]. The authority is not an advisory body to the governor [Texas Department of Transportation].

SECTION 11.03. Sections 3(h) and (l), Article 4413(37), Revised Statutes, are amended to read as follows:

(h) If a person [the director] has knowledge that a potential ground for removal exists, the person [director] shall notify the presiding officer of the authority of the potential ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the person [director] shall notify the next highest officer of the authority, who shall notify the governor and the attorney general that a potential ground for removal exists.

(l) The governor's [director or the director's] designee shall provide to members of the authority, as often as necessary, information regarding their qualifications for office under this article and their responsibilities under applicable laws relating to standards of conduct for state officers.

SECTION 11.04. Section 5(d), Article 4413(37), Revised Statutes, is amended to read as follows:

(d) The training program required by Subsection (c) must provide information to the person regarding:

(1) the enabling legislation that created the authority and its policymaking body to which the member is appointed to serve;

(2) the programs operated by the authority;

(3) the role and functions of the authority;

(4) the rules of the authority [and the department];

(5) the current budget for the authority;

(6) the results of the most recent formal audit of the authority;

(7) the requirements of the:

(A) open meetings law, Chapter 551, Government Code;

(B) open records law, Chapter 552, Government Code; and

(C) administrative procedure law, Chapter 2001, Government Code;

(8) the requirements of the conflict-of-interest laws and other laws relating to public officials; and

(9) any applicable ethics policies adopted by the office [department] or the Texas Ethics Commission.

SECTION 11.05. Sections 6(c), (d), (e), (f), and (g), Article 4413(37), Revised Statutes, are amended to read as follows:

(c) The authority may use only staff of the office [department] and may delegate authority to the staff as needed.

(d) Not later than April 1 of each year, the authority shall report on its activities to the governor, the lieutenant governor, and the speaker of the house of representatives.

(e) The authority may be provided various services only by or through the office [department] as needed to carry out its purposes, powers, and duties. These services may include, but are not limited to, legal services not provided by the attorney general, fiscal services, administrative services, and personnel services. Except as provided by this section, the authority may enter into contracts in its own name and on its own behalf with recipients of grants for purposes of this article.

(f) The office [department] shall provide personnel and services to the authority as agreed by the authority and the office [department].

(g) The authority shall, in coordination with the office [department], develop and implement policies that clearly separate the policymaking responsibilities of the authority and the management responsibilities of the office [department].

SECTION 11.06. Section 8(a), Article 4413(37), Revised Statutes, as amended by Chapters 308 (H.B. 1887) and 927 (H.B. 3225), Acts of the 80th Legislature, Regular Session, 2007, is reenacted and amended to read as follows:

(a) Money appropriated to the office [department] for authority purposes shall be used by the authority to pay the office [department] for administrative costs and to achieve the purposes of this article, including:

(1) establishing and funding the motor vehicle registration program required by Section 9 of this article;

(2) providing financial support to law enforcement agencies for economic motor vehicle theft enforcement teams;

(3) providing financial support to law enforcement agencies, local prosecutors, judicial agencies, and neighborhood, community, business, and nonprofit organizations for programs designed to reduce the incidence of economic motor vehicle theft;

(4) conducting educational programs designed to inform motor vehicle owners of methods of preventing motor vehicle burglary or theft;

(5) providing equipment, for experimental purposes, to assist motor vehicle owners in preventing motor vehicle burglary or theft; and

(6) establishing a uniform program to prevent stolen motor vehicles from entering Mexico.

SECTION 11.07. Section 8(c), Article 4413(37), Revised Statutes, is amended to read as follows:

(c) The cost of personnel and services provided to the authority by the office [department] and by the attorney general may be paid only from appropriations made for authority purposes. Appropriations made for authority purposes may not be used for any other purpose.

SECTION 11.08. Section 9(e), Article 4413(37), Revised Statutes, is amended to read as follows:

(e) The Department of Public Safety [department] shall issue to the owner of a motor vehicle registered under this section a decal or other appropriate identifying marker to be affixed to the motor vehicle to indicate that the motor vehicle is registered with the program.

SECTION 11.09. Section 1(4), Article 4413(37), Revised Statutes, is repealed.

SECTION 11.10. (a) In connection with the establishment by this Act of the Automobile Burglary and Theft Prevention Authority in the office of the governor and with the transfer by this Act of the duty to provide personnel and services to the Automobile Burglary and Theft Prevention Authority from the Texas Department of Transportation to the office of the governor, the personnel, furniture, computers, other property and equipment, files, and related materials used by the Automobile Burglary and Theft Prevention Authority are transferred to the office of the governor.

(b) The unobligated and unexpended balance of any appropriations made to the Texas Department of Transportation in connection with or relating to the Automobile Burglary and Theft Prevention Authority for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the office of the governor for the purpose of allowing the authority to continue to exercise its powers, duties, and obligations under the auspices of that office.

ARTICLE 12. STATE FINANCING OF PUBLIC TRANSPORTATION

SECTION 12.01. Subchapter A, Chapter 456, Transportation Code, is amended by adding Section 456.009 to read as follows:

Sec. 456.009. ALLOCATION OF FUNDS. (a) The commission shall adopt rules to allocate funds to designated recipients under this chapter.

(b) Subject to Subsection (c), of the total amount of money allocated under this chapter, the commission may not distribute:

(1) less than 90 percent of the total amount allocated under the formula program provided by Subchapter B; and

(2) more than 10 percent of the total amount allocated under the discretionary program provided by Subchapter C.

(c) The rules established by the commission under this section must include a provision ensuring that no recipient of state funding under Subchapter B or C receives an amount of funding allocated under those subchapters that is less than the total amount of state funding received under those subchapters in the state fiscal year beginning September 1, 2004.

ARTICLE 13. MEMORANDA OF UNDERSTANDING

SECTION 13.01. (a) The board of the Texas Department of Motor Vehicles and the Texas Transportation Commission by rule shall adopt or revise a joint memorandum of understanding to coordinate the Texas Department of Motor Vehicles' and the Texas Department of Transportation's information systems to allow for the sharing of information so that each department may effectively and efficiently perform the functions and duties assigned to it.

(b) The Texas Department of Motor Vehicles and the Texas Department of Transportation shall implement the joint memorandum of understanding using existing personnel and resources.

(c) Otherwise confidential information shared under the memorandum of understanding remains subject to the same confidentiality requirements and legal restrictions on access to the information that are imposed by law on the department that originally obtained or collected the information.

(d) Information may be shared under the memorandum of understanding without the consent of the person who is the subject of the information.

SECTION 13.02. In addition to the memorandum of understanding required by Section 13.01 of this article, the board of the Texas Department of Motor Vehicles and the Texas Transportation Commission by rule may adopt or revise one or more other joint memoranda of understanding as considered necessary or appropriate to effectuate the transfer of the powers and duties of the Texas Department of Transportation to the Texas Department of Motor Vehicles under this Act.

ARTICLE 14. EFFECTIVE DATE

SECTION 14.01. This Act takes effect September 1, 2009.