81R1848 JD/ACP/JTS/MTB/SLB-D

By: Isett 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 transfer of certain functions to the Texas Department of Motor Vehicles; providing penalties.

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

ARTICLE 1. ABOLITION OF TEXAS TRANSPORTATION COMMISSION

SECTION 1.01. Section 201.003, Transportation Code, is amended to read as follows:

Sec. 201.003. TITLE AND ORGANIZATIONAL CHANGES. (a) A reference in law to the State Highway Department, Texas Highway Department, or State Department of Highways and Public Transportation means the Texas Department of Transportation.

(b) A reference in law to the State Highway Commission, [or] State Highway and Public Transportation Commission, or Texas Transportation Commission means the commissioner of transportation [Texas Transportation Commission].

(c) A reference in law to the State Highway Engineer, the [or] State Engineer-Director for Highways and Public Transportation, or [means] the director of the Texas Department of Transportation means the commissioner of transportation.

(d) [A reference in law to the commissioner of transportation means the chair of the commission.

[(e)] A [reference in] law that authorizes the Texas Transportation Commission to authorize the director of the Texas Department of Transportation to take an action shall be construed to authorize the commissioner of transportation to take that action [to a member of the commission means a commissioner].

SECTION 1.02. Subchapter B, Chapter 201, Transportation Code, is amended to read as follows:

SUBCHAPTER B. COMMISSIONER OF [TEXAS] TRANSPORTATION [COMMISSION]

Sec. 201.051. COMMISSIONER [COMMISSION]. (a) The commissioner is appointed by the governor with the advice and consent of the senate for a term of two years that expires February 1 of each odd-numbered year. [Texas Transportation Commission consists of five members appointed by the governor with the advice and consent of the senate.]

(b) To be eligible for appointment as commissioner, or appointment to fill a vacancy in the office of commissioner, a person:

(1) must:

(A) be experienced and skilled in transportation planning, development, financing, construction, and maintenance; or

(B) have appropriate finance or management experience; and

(2) may not have served as a member of the legislature of this state during the preceding 10 years. [The members shall be appointed to reflect the diverse geographic regions and population groups of this state. One member must reside in a rural area.]

(c) A [Each member of the commission must represent the general public.

[(d) Except as provided by Subsection (e), a] person is not eligible for appointment as commissioner [a member of the commission] if the person or the person's spouse:

(1) is employed by or participates in the management of a business entity or other organization that is regulated by or receives funds from the department;

(2) directly or indirectly owns or controls more than 10 percent interest in a business entity or other organization that is regulated by or receives funds from the department;

(3) uses or receives a substantial amount of tangible goods, services, or funds from the department, other than compensation or reimbursement authorized by law for [commission membership, attendance, or] expenses; or

(4) is registered, certified, or licensed by the department.

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

(e) [(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 or a Texas association of automobile dealers is not eligible for appointment as commissioner [may not be a member of the commission].

(f) [(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 as commissioner [may not serve as a member of the commission].

(g) The appointment of the commissioner [(i) Appointments to the commission] shall be made without regard to race, color, disability, sex, religion, age, or national origin of the appointee [appointees and shall reflect the diversity of the population of the state as a whole].

(h) [(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.

(i) The commissioner is a successor to the Texas Transportation Commission for all purposes, including for the purposes of Sections 49-k, 49-l, 49-m, 49-n, and 49-o, Article III, Texas Constitution.

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

[Sec. 201.053. CHAIR OF THE COMMISSION. (a) The governor periodically shall designate one commissioner as the chair of the commission, who shall serve as presiding officer of the commission.

[(b)] The commissioner [chair] shall:

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

[(2)] represent the department in dealing with the governor;

(2) [(3)] report to the governor on the state of affairs of the department at least quarterly;

(3) [(4) report to the commission the governor's suggestions for department operations;

[(5)] report to the governor on efforts, including legislative requirements, to maximize the efficiency of department operations through the use of private enterprise;

(4) [(6)] periodically review the department's organizational structure and submit recommendations for structural changes to the governor[, the commission,] and the Legislative Budget Board;

(5) [(7)] designate one or more employees of the department as a civil rights division of the department and receive regular reports from the division on the department's efforts to comply with civil rights legislation and administrative rules;

(6) [(8) create subcommittees, appoint commissioners to subcommittees, and receive the reports of subcommittees to the commission as a whole;

[(9)] appoint a deputy commissioner to act in the commissioner's [chair's] absence; and

(7) [(10)] serve as the departmental liaison with the governor and the Office of State-Federal Relations to maximize federal funding for transportation.

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

[Sec. 201.0545. RECOMMENDATIONS TO LEGISLATURE. (a) The commission shall consider ways in which the department's operations may be improved and may periodically report to the legislature concerning potential statutory changes that would improve the operation of the department.

[(b) On behalf of the commission, the chair shall report to the governor, the lieutenant governor, the speaker of the house of representatives, and the presiding officers of relevant legislative committees on legislative recommendations adopted by the commission and relating to the operation of the department.]

Sec. 201.053 [201.056]. COMPENSATION. The commissioner [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.]

Sec. 201.054 [201.057]. GROUNDS FOR REMOVAL. (a) It is a ground for removal [from the commission] if the [a] commissioner:

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

(2) violates a prohibition provided by Section 201.051 or 201.401; or

(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].

(b) The validity of an action of the commissioner or department [commission] is not affected by the fact that it is taken when a ground for removal of the [a] commissioner exists.

[(c) If the director knows that a potential ground for removal exists, the director shall notify the chair of the commission of the ground, and the chair shall notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal relates to the chair, the director shall notify another commissioner, who shall notify the governor and the attorney general that a potential ground for removal exists.]

Sec. 201.055 [201.058]. INFORMATION ON QUALIFICATIONS AND CONDUCT. The department shall provide to the commissioner [members of the commission], as often as necessary, information concerning the commissioner's [members'] qualifications for office and the commissioner's [under Subchapter B and their] responsibilities under applicable laws relating to standards of conduct for state officers.

Sec. 201.056 [201.059]. TRAINING ON DEPARTMENT AND CERTAIN LAWS RELATING TO DEPARTMENT. (a) To be eligible to take office as commissioner [a member of the commission], a person appointed as commissioner [to the commission] must complete at least one course of a training program that complies with this section.

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

(1) this subchapter;

(2) the programs operated by the department;

(3) the role and functions of the department;

(4) the rules of the department, with an emphasis on the rules that relate to disciplinary and investigatory authority;

(5) the current budget for the department;

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

(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 department [commission] or the Texas Ethics Commission.

[(c) A person appointed to the commission is entitled to reimbursement for travel expenses incurred in attending the training program, as provided by the General Appropriations Act and as if the person were a member of the commission.]

SECTION 1.03. The heading to Subchapter C, Chapter 201, Transportation Code, is amended to read as follows:

SUBCHAPTER C. COMMISSIONER'S [COMMISSION'S] POWERS AND DUTIES

SECTION 1.04. Sections 201.101, 201.102, and 201.103, Transportation Code, are amended to read as follows:

Sec. 201.101. RULES; RECORDS. The commissioner [commission] shall:

(1) adopt rules for the operation of the department;

(2) maintain a record of all proceedings and official orders; and

(3) keep on file copies of all road plans, specifications, and estimates prepared by the department or under its direction.

Sec. 201.102. SEPARATION OF RESPONSIBILITIES. The commissioner [commission] shall develop and implement policies that clearly define [separate] the respective [policy-making] responsibilities of the commissioner [commission] and the [management responsibilities of the director and] staff of the department.

Sec. 201.103. COMPREHENSIVE SYSTEM OF HIGHWAYS AND ROADS. (a) The commissioner [commission] shall plan and make policies for the location, construction, and maintenance of a comprehensive system of state highways and public roads.

(b) The commissioner [commission] shall designate as part of the state highway system a highway that the commissioner [it] determines is necessary for the proper development and operation of the system. The commissioner [commission] may remove a segment of the state highway system that the commissioner [it] determines is not needed for the system. In planning and making policies, the commissioner [commission] shall consider, for incorporation into the state highway system, turnpikes that other governmental or private entities are authorized to construct.

(c) The commissioner [commission] biennially shall submit a report of the commissioner's [its] work to the governor and the legislature. The report must include the recommendations of the commissioner [commission and of the director].

(d) The commissioner [director, under the direction and with the approval of the commission,] shall prepare a comprehensive plan providing a system of state highways.

SECTION 1.05. Sections 201.104(a) and (b), Transportation Code, are amended to read as follows:

(a) The commissioner [commission] may designate any county road as a farm-to-market road for the purposes of construction, reconstruction, and maintenance only, if the commissioners court of the county in which the county road is located by order entered in its minutes waives any rights the county may have for state participation in any indebtedness incurred by the county in the construction of the road.

(b) The commissioner [commission] and the county commissioners court by contract may set forth the duties of the state in the construction, reconstruction, and maintenance of the county road in consideration for the county's, road district's, or defined road district's relinquishing all claims for state participation in any outstanding county or road district bond, warrant, or other evidence of indebtedness that is for the construction or improvement of the road and that was created before the road was designated by the commissioner [commission].

SECTION 1.06. Sections 201.105(a), (b), (d), (e), and (g), Transportation Code, are amended to read as follows:

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

(b) In determining a district's boundaries, the commissioner [commission] shall consider all costs and benefits, including highway activity in and the number of employees required for the proposed district.

(d) The commissioner [commission] shall determine the number of department offices necessary for maintenance and construction personnel in a district.

(e) The commissioner [commission] periodically shall review the necessity for the number of maintenance, construction, and support operations in each district. The commissioner [commission] shall include the findings of the commissioner's [its] review as a part of the department's budget request submitted to the Legislative Budget Board.

(g) The commissioner [commission] may require by rule that any product or material that is approved for use in any one district may be approved for use by any other district.

SECTION 1.07. Sections 201.1055(c) and (d), Transportation Code, are amended to read as follows:

(c) Notwithstanding Section 202.024, the commissioner [commission] may [authorize the executive director to] execute a deed exchanging department-owned real property under Subsection (a)(2).

(d) The commissioner [commission] shall notify the Bond Review Board and Texas Public Finance Authority of the proposed transaction not less than 45 days before the date the commissioner [commission] signs an agreement under this section providing for the exchange of department-owned real property under Subsection (a)(2).

SECTION 1.08. Sections 201.107, 201.108, 201.109, 201.110, and 201.111, Transportation Code, are amended to read as follows:

Sec. 201.107. FINANCIAL REPORTS OF THE DEPARTMENT. (a) The commissioner [commission] shall prepare a quarterly statement containing an itemized list of all money received by the department and the source of the money and of all money paid by the department and the purpose of the payment. The statement shall be filed in the records of the department, and a copy shall be sent to the governor.

(b) The commissioner [commission] shall file annually with the governor and the presiding officer of each house of the legislature a complete and detailed written report accounting for all funds received and disbursed by the department during the preceding fiscal year. The report must comply with each reporting requirement applicable to financial reporting provided by the General Appropriations Act.

Sec. 201.108. INTERNAL AUDITOR. (a) The commissioner [commission] shall appoint an internal auditor for the department.

(b) The auditor shall report directly to the commissioner [commission] on the conduct of department affairs.

Sec. 201.109. REVENUE ENHANCEMENT. (a) The commissioner [commission] shall:

(1) enhance existing sources of revenue; and

(2) create alternate sources of revenue.

(b) In carrying out this section, the commissioner [commission] shall provide for:

(1) maximizing the generation of revenue from existing assets of the department, including real estate;

(2) increasing the role of the private sector and public-private projects in the leasing of real estate and other assets in the development of highway projects;

(3) setting and attempting to meet annual revenue enhancement goals;

(4) reporting on the progress in meeting revenue enhancement goals in the department's annual report;

(5) contracting for an independent audit of the department's management and business operations in 2007 and each 12th year after 2007;

(6) developing a cost-benefit analysis between the use of local materials previously incorporated into roadways versus use of materials blended or transported from other sources; and

(7) increasing private investment in the transportation infrastructure, including the acquisition of causeways, bridges, tunnels, turnpikes, or other transportation facilities, in the border region, including the counties of Atascosa, Bandera, Bexar, Brewster, Brooks, Cameron, Crockett, Culberson, Dimmit, Duval, Edwards, El Paso, Frio, Hidalgo, Hudspeth, Jeff Davis, Jim Hogg, Jim Wells, Kenedy, Kerr, Kimble, Kinney, Kleberg, La Salle, Live Oak, Maverick, McMullen, Medina, Nueces, Pecos, Presidio, Real, Reeves, San Patricio, Starr, Sutton, Terrell, Uvalde, Val Verde, Webb, Willacy, Zapata, and Zavala.

Sec. 201.110. CONTRACT WITH ADJOINING STATE FOR IMPROVEMENT OF ROAD CROSSING STATES' BOUNDARY. (a) The commissioner [commission], by the authority of the governor, may contract with an adjoining state to:

(1) provide for the improvement of a public road or highway that crosses the states' boundary; and

(2) establish respective responsibilities for the improvement.

(b) In a contract for an improvement of the state highway system that is subject to a contract under Subsection (a), the commissioner [commission] may provide for the improvement of a segment of a public road or highway located in the adjoining state if:

(1) the improvement of that segment is necessary for the health, safety, and welfare of the people of this state and for the effective improvement and operation of the state highway system;

(2) that segment is an extension or continuation of a segment of the state highway system;

(3) the contract under Subsection (a) is authorized and executed under the law of the adjoining state; and

(4) all costs associated with the improvement of that segment are the responsibility of the adjoining state.

(c) In this section, "improvement" includes construction, reconstruction, and maintenance.

Sec. 201.111. RECOMMENDATION OF ENGINEER; DETERMINATION OF FITNESS. (a) On formal application by a county, road district of a county, or municipality, the commissioner [commission] may recommend for appointment a competent civil engineer who is a graduate of a first-class school of civil engineering and who is skilled in highway construction and maintenance.

(b) The commissioner [commission] shall adopt rules necessary to determine the qualifications of engineers who apply for highway construction work.

SECTION 1.09. Section 201.112(a), Transportation Code, is amended to read as follows:

(a) The commissioner [commission] may by rule establish procedures for the informal resolution of a claim arising out of a contract described by:

(1) Section 22.018;

(2) Chapter 223;

(3) Chapter 361;

(4) Section 391.091; or

(5) Chapter 2254, Government Code.

SECTION 1.10. Section 201.113(a), Transportation Code, is amended to read as follows:

(a) Notwithstanding Sections 221.003 and 224.031, the commissioner [commission] and a regional tollway authority governed by Chapter 366 may enter into an agreement for the improvement by a regional tollway authority of portions of the state highway system.

SECTION 1.11. Sections 201.114(b), (c), and (d), Transportation Code, are amended to read as follows:

(b) The coordinator shall serve on the Border Trade Advisory Committee as presiding officer. The commissioner [commission] shall appoint the other members of the committee, which to the extent practicable must include:

(1) the presiding officers, or persons designated by the presiding officers, of the policy boards of metropolitan planning organizations wholly or partly in the department's Pharr, Laredo, Odessa, or El Paso transportation district;

(2) the person serving, or a person designated by the person serving, in the capacity of executive director of each entity governing a port of entry in this state; and

(3) a representative each from at least two institutes or centers operated by a university in this state that conduct continuing research on transportation or trade issues.

(c) The commissioner [commission] shall establish the Border Trade Advisory Committee to define and develop a strategy and make recommendations to the commissioner [commission] and governor for addressing the highest priority border trade transportation challenges. In determining action to be taken on the recommendations, the commissioner [commission] shall consider the importance of trade with the United Mexican States, potential sources of infrastructure funding at border ports, and the value of trade activity in the department's districts adjacent to the border with the United Mexican States.

(d) The commissioner [commission] may adopt rules governing the Border Trade Advisory Committee.

SECTION 1.12. Sections 201.115(a) and (b), Transportation Code, are amended to read as follows:

(a) The commissioner [commission] may authorize the department to borrow money from any source to carry out the functions of the department.

(b) A loan under this section may be in the form of an agreement, note, contract, or other form as determined by the commissioner [commission] and may contain any provisions the commissioner [commission] considers appropriate, except:

(1) the term of the loan may not exceed two years;

(2) the amount of the loan, combined with any amounts outstanding on other loans under this section, may not exceed an amount that is two times the average monthly revenue deposited to the state highway fund for the 12 months preceding the month of the loan; and

(3) the loan may not create general obligation of the state and is payable only as authorized by legislative appropriation.

SECTION 1.13. Sections 201.116(b) and (d), Transportation Code, are amended to read as follows:

(b) To assist the secretary of state in preparing the report required under Section 405.021, Government Code, the commissioner [commission] on a quarterly basis shall provide a report to the secretary of state detailing any projects funded by the department that serve colonias by providing paved roads or other assistance.

(d) The commissioner [commission] shall require an applicant for funds administered by the commissioner [commission] to submit to the commissioner [commission] a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the commissioner [commission] may contact the secretary of state or the secretary of state's representative to obtain the classification number. On request of the commissioner [commission], the secretary of state or the secretary of state's representative shall assign a classification number to the colonia.

SECTION 1.14. Sections 201.201 and 201.202, Transportation Code, are amended to read as follows:

Sec. 201.201. GOVERNANCE OF DEPARTMENT. The commissioner [commission] governs the Texas Department of Transportation.

Sec. 201.202. DIVISIONS; DIVISION PERSONNEL. (a) The commissioner [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].

(b) The person designated by the commissioner [director] to supervise the division responsible for highways and roads must be a registered professional engineer experienced and skilled in highway construction and maintenance.

(c) A [In appointing a] person designated by the commissioner as the department's chief financial officer must report directly to the commissioner [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 1.15. 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 1.16. Subchapter D, Chapter 201, Transportation Code, is amended by adding Sections 201.210, 201.211, 201.212, and 201.213 to read as follows:

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

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

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

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

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

(b) The commissioner 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).

Sec. 201.211. LEGISLATIVE LOBBYING. (a) In addition to Section 556.006, Government Code, the commissioner 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) Violation of Subsection (a) is grounds for dismissal of an employee.

(c) This section does not prohibit the commissioner 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 commissioner in an open meeting not later than the 30th day before the commissioner adopts the legislative appropriations request for submission to the Legislative Budget Board.

SECTION 1.17. Subchapter E, Chapter 201, Transportation Code, is amended to read as follows:

SUBCHAPTER E. STATE ROAD MAP; UNIVERSITY LABORATORIES [DIRECTOR]

Sec. 201.301. [EXECUTIVE DIRECTOR. (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.

[(b) The director serves at the will of the commission.

[(d) The director shall:

[(1) serve the commission in an advisory capacity, without vote; and

[(2) submit to the commission, quarterly, annually, and biennially, detailed reports of the progress of public road construction, detailed reports of public and mass transportation development, and detailed statements of expenditures.

[(e) The director is entitled to actual expenses for and related to travel away from Austin in performance of the director's duties under the direction of the commission.

[Sec. 201.302.] STATE ROAD MAP. The commissioner [director] shall make, regularly revise, and keep in a form convenient for examination in the office of the department a complete road map of the state that shows road construction in the counties.

Sec. 201.302 [201.303]. USE OF UNIVERSITY LABORATORIES FOR ANALYZING MATERIALS. The commissioner [director] may use laboratories maintained at Texas A&M University and The University of Texas to test and analyze road and bridge material. Persons in charge of the laboratories shall cooperate with and assist the commissioner [director] with those tests and analyses.

SECTION 1.18. Section 201.404(b), Transportation Code, is amended to read as follows:

(b) The commissioner [director] or the commissioner's [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 commissioner 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 commissioner and the legislature.

SECTION 1.19. (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.

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 1.20. (a) The first commissioner of transportation appointed under the changes in law made by this article shall be appointed to serve for a term that begins January 1, 2011.

(b) Until the first commissioner of transportation appointed under this Act takes office, the members of the Texas Transportation Commission and the executive director of the Texas Department of Transportation serving on the effective date of this Act shall, unless otherwise removed as provided by law, continue in office under the prior law that governed the composition of the Texas Transportation Commission, and that prior law is continued in effect for that purpose. At the time the first commissioner of transportation that is appointed under this Act takes office, the Texas Transportation Commission is abolished.

(c) The commissioner of transportation succeeds to all powers, duties, rights, and obligations of the Texas Transportation Commission, and the abolition of the Texas Transportation Commission does not affect the validity of any right, duty, decision, rule, or action of any kind taken by or under the authority of the commission.

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 PLAN. (a) The department shall develop a statewide transportation plan covering a period of 20 years that contains all modes of transportation, including:

(1) highways and turnpikes;

(2) aviation;

(3) mass transportation;

(4) railroads and high-speed railroads; and

(5) water traffic.

(a-1) The plan must:

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

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

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

(A) other state agencies;

(B) political subdivisions;

(C) local planning organizations; and

(D) the general public.

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

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

(d) [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 goals and measurable targets established under Subsection (a-1)(1) [the performance measures] in selecting transportation projects [improvements].

(e) The department annually shall provide to the lieutenant governor, the speaker of the house of representatives, and the chair of the standing committee of each house of the legislature with primary jurisdiction over transportation issues an analysis of the department's progress in attaining the goals under Subsection (a-1)(1). The department shall make the information under this subsection available on its Internet website.

(f) The department shall update the plan every five years.

SECTION 2.02. Subchapter H, Chapter 201, Transportation Code, is amended by adding Sections 201.6015 and 201.621 to read as follows:

Sec. 201.6015. INTEGRATION OF PLANS AND POLICY EFFORTS. In developing each of its transportation plans and policy efforts, the department must clearly reference the 20-year plan under Section 201.601 and specify how the plan or policy effort supports or otherwise relates to the specific goals under that section.

Sec. 201.621. COORDINATION WITH METROPOLITAN PLANNING ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The department shall collaborate with metropolitan planning organizations 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 in the statewide transportation plan under Section 201.601.

SECTION 2.03. Subchapter D, Chapter 472, Transportation Code, is amended by adding Section 472.035 to read as follows:

Sec. 472.035. COORDINATION WITH METROPOLITAN PLANNING ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. Each metropolitan planning organization shall work 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 in the organization's long-range transportation plan.

SECTION 2.04. (a) Subchapter J, Chapter 201, Transportation Code, is amended by adding Sections 201.807, 201.808, 201.809, and 201.810 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 regarding all of the department's transportation plans, including the unified transportation program required by Section 201.992. The project information reporting system shall contain information about:

(1) each department 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 (d);

(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 as required by Section 201.992(b)(2); and

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

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

(1) the legislature;

(2) local transportation entities as defined by Section 201.991; and

(3) members of the public.

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

(d) As a component of the 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 transportation plans, including the unified transportation program, to determine the completion rates of the projects and whether the projects were completed on time.

(e) 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 in a manner consistent with the statewide transportation plan required by Section 201.601.

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

(2) the evaluation of the effectiveness of expenditures by the department required by Section 201.601(d);

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

(4) 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;

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

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

(B) bridge deterioration scores;

(6) 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

(7) information about 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) The department shall establish criteria to prioritize the transportation needs for the state that is consistent with the statewide transportation plan.

(f) Each department district shall enter information into the transportation expenditure reporting system, including information about:

(1) each district transportation project; and

(2) the priority category to which the project has been assigned according to Section 201.996.

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

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

(2) the status of each project identified as a major priority;

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

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

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

(c) The department shall provide a copy of the legislative district report to each member of the legislature, and at the request of a member, a department employee shall meet with the member to explain the report.

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

(1) a municipality;

(2) a county; and

(3) a local transportation entity as defined by Section 201.991.

Sec. 201.810. DEPARTMENT INFORMATION CONSOLIDATION. (a) To the extent practicable and to avoid duplication of reporting requirements, the department may combine the reports required under this subchapter with reports required under other provisions of this code.

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

(b) Not later than September 1, 2009, the Texas Department of Transportation shall establish the central location on the department's Internet website required by Section 201.810, Transportation Code, as added by this section.

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

SUBCHAPTER P. UNIFIED TRANSPORTATION PROGRAM

Sec. 201.991. DEFINITION. In this subchapter, "local transportation entity" means any entity that participates in the transportation planning process. The term includes a metropolitan planning organization as defined by Section 472.031, a regional tollway authority organized under Chapter 366, a regional transportation authority operating under Chapter 452, and a rural transit district as defined by Section 458.001.

Sec. 201.992. UNIFIED TRANSPORTATION PROGRAM. (a) The department shall develop a unified transportation program covering a period of 11 years to guide the development of and authorize construction of transportation projects. The program must:

(1) annually identify target funding levels; and

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

(b) The department shall adopt rules that:

(1) specify the criteria for selecting projects to be included in the program;

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

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

(c) The department shall publish the entire unified transportation program and summary documents highlighting project benchmarks, priorities, and forecasts in appropriate media and on the department's Internet website in a format that is easily understandable by the public.

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

Sec. 201.993. ANNUAL UPDATE TO UNIFIED TRANSPORTATION PROGRAM. (a) The department shall annually update the unified transportation program.

(b) The annual update must include:

(1) the annual funding forecast required by Section 201.994;

(2) the list of major transportation projects required by Section 201.995(b); and

(3) the projects included in each program priority category established by Section 201.996.

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

Sec. 201.994. ANNUAL FUNDING AND CASH FLOW FORECASTS. (a) The department annually shall:

(1) develop and publish a forecast of all funds the department expects to receive, including funds from this state and the federal government; and

(2) use that forecast to guide planning for the unified transportation program.

(b) The department shall collaborate with local transportation entities to develop scenarios for the forecast required by Subsection (a) based on mutually acceptable funding assumptions.

(c) Not later than January 31 of each odd-numbered year, the department shall prepare and publish a cash flow forecast for a period of 10 years.

Sec. 201.995. MAJOR TRANSPORTATION PROJECTS. (a) The department shall by rule:

(1) establish criteria for designating a project as a major transportation project;

(2) develop benchmarks for evaluating the progress of a major transportation project and timelines for implementation and construction of a major transportation project; and

(3) determine which critical benchmarks must be met before a major transportation project may enter the implementation phase of the unified transportation program.

(b) The department annually shall update the list of projects that are designated as major transportation projects.

(c) In adopting rules required by this section, the department shall collaborate with local transportation entities.

Sec. 201.996. PROGRAM PRIORITY CATEGORIES. (a) The department by rule shall establish categories in the unified transportation program to designate the priority of each project included in the program and shall assign each project a category.

(b) The department shall collaborate with local transportation entities when assigning each project included in the unified transportation program to a category established under Subsection (a).

(c) The highest priority category within the unified transportation program must consist of projects designated as major transportation projects.

Sec. 201.997. FUNDING ALLOCATION. (a) The department by rule shall establish formulas for allocating funds in each category described by Section 201.992(b)(2).

(b) The department shall update the formulas established under this section at least every five years.

Sec. 201.998. FUND DISTRIBUTION. (a) The department shall allocate funds to the department districts based on the formulas adopted under Section 201.997.

(b) In distributing funds to department districts, the department may not exceed the cash flow forecast prepared and published under Section 201.994(c).

Sec. 201.999. WORK PROGRAM. (a) Each department district shall develop a consistently formatted work program based on the unified transportation program covering a period of four years that contains all projects that the district proposes to implement during that period.

(b) The work program must contain:

(1) information regarding the progress of projects designated as major transportation projects, according to project implementation benchmarks and timelines established under Section 201.995; and

(2) a summary of the progress on other district projects.

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

(1) monitor the performance of the district; and

(2) evaluate the performance of district employees.

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

SECTION 2.06. Chapter 472, Transportation Code, is amended by adding Subchapter E to read as follows:

SUBCHAPTER E. RURAL PLANNING ORGANIZATIONS

Sec. 472.051. DEFINITION. In this subchapter, "rural planning organization" means an organization created under this subchapter for the purpose of transportation planning in a rural area of this state.

Sec. 472.052. CREATION. To the extent practicable through the use of existing resources, the department shall facilitate the creation of rural planning organizations in cooperation with councils of governments, municipal and county governments, and other local transportation entities. The structure and membership of a rural planning organization may vary according to the transportation and other governmental needs of the area served by the organization.

Sec. 472.053. TRANSPORTATION PLANNING. A rural planning organization may:

(1) establish transportation priorities and approve transportation projects in the boundaries of the area served by the organization;

(2) select projects for inclusion in the statewide transportation improvement program; and

(3) provide input to the department on projects involving the connectivity of the state highway system.

Sec. 472.054. REALIGNMENT OF DEPARTMENT DISTRICTS IN RURAL AREAS. In facilitating the creation of rural planning organizations under this subchapter, the department shall consider whether changing its districts' boundaries to align more closely with those of existing councils of governments would better facilitate rural transportation planning.

Sec. 472.055. DEPARTMENT PARTICIPATION. The department shall:

(1) provide funds and personnel to assist rural planning organizations with rural transportation planning; and

(2) work with rural planning organizations to identify available sources of funding for rural transportation planning, which may include federal funds or transportation development credits.

ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS

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

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

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

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

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

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

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

(c) [The department shall:

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

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

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

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

[(1) the date the complaint is filed;

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

[(3) the subject matter of the complaint;

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

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

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

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

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

(g) The department shall:

(1) compile:

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

(i) the nature of the complaints;

(ii) their disposition; and

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

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

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

ARTICLE 4. CONTRACTING FUNCTIONS

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

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

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

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

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

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

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

SECTION 4.02. 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, if the department enters into a design-build contract under this section, the department shall use a competitive procurement process that provides the best value for the department.

(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 4.03. (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 inform the department whether the motor carrier has requested criminal history record information on its employees under Chapter 145, Civil Practice and Remedies Code.

(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. For the purposes of this subsection, the department may require a motor carrier transporting household goods that requests criminal history record information on its employees to submit to the department, at the time of the original motor carrier registration and at the renewal of the registration, documentation that the criminal history record information:

(1) has been requested and obtained;

(2) is regularly updated; and

(3) is used to exclude from employment persons who have committed a serious criminal offense.

(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, Transportation Code, is amended by amending Subsection (b) and adding Subsection (b-1) 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. Except as provided by Subsection (b-1), if [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-1) The limit on the aggregate penalty for multiple violations in Subsection (b) does not apply to a motor carrier transporting household goods.

(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 that 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 director.

Sec. 643.257. EMERGENCY CEASE AND DESIST ORDER. (a) If it appears to the director 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 director determines that the unauthorized activity constitutes a clear, imminent, or continuing threat to the public health and safety, the director 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 director; and

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

(d) On receiving a request for a hearing, the director 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 director 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 director 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 director. The director may impose any condition before granting a stay of the order.

(g) The director 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 director 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 department 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 transportation commission 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 transportation commission 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 director 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 director 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 department 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 commission 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 commission 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 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 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 6.04. 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 6.05. 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 6.06. 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 6.07. Section 391.065(b), Transportation Code, is amended to read as follows:

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

SECTION 6.08. Section 391.066, Transportation Code, is amended by adding Subsection (d) 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.

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

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

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

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

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

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

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

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

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

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

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

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

(b) The department shall provide 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 6.13. 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 EXTRATERRITORIAL JURISDICTION OF CERTAIN MUNICIPALITIES. (a) This section applies only to a sign located in the extraterritorial jurisdiction of a municipality that regulates signs in its extraterritorial jurisdiction.

(b) If a sign 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 6.14. 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 6.15. (a) Subchapter B, Chapter 394, Transportation Code, is amended by adding Sections 394.0201, 394.0202, 394.0203, 394.0204, 394.0205, 394.0206, 394.0207, 394.027, 394.028, and 394.029 to read as follows:

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

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

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

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

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

(2) pays the appropriate license fee; and

(3) files with the commission a surety bond.

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

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

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

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

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

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

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

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

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

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

(1) restrict the use of:

(A) any legal medium for an advertisement;

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

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

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

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

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

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

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

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

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

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

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

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

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

SECTION 6.16. 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 6.17. 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 6.18. Sections 394.082(a), (d), and (e), Transportation Code, are amended to read as follows:

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

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

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

ARTICLE 7. GREEN RIBBON PROJECT

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

Sec. 201.708. EXPENDITURES FOR HIGHWAY LANDSCAPING. (a) For each contract for a highway project 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, Title 7;

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

(4) Chapters 2301 and 2302, Occupations Code; and

(5) Article 4413(37), Revised Statutes.

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) automobile burglary and theft prevention;

(3) motor carriers;

(4) motor vehicle board; and

(5) vehicle titles and registration.

Sec. 1001.005. 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 1001.006-1001.020 reserved for expansion]

SUBCHAPTER B. BOARD OF DEPARTMENT OF MOTOR VEHICLES

Sec. 1001.021. BOARD. (a) The board consists of seven members appointed by the governor with the advice and consent of the senate. Appointments to the board shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees.

(b) Two members shall be appointed to represent motor vehicle dealers; one member shall be appointed to represent county tax assessor-collectors; one member shall be appointed to represent the motor carrier industry; one member shall be appointed to represent law enforcement agencies; and two members shall be appointed to represent the general public. The member appointed to represent law enforcement agencies may not be a state employee.

(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 once a month and special meetings 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. ACCESS TO PROGRAMS AND FACILITIES. (a) The department shall prepare and maintain a written plan that describes how a person who does not speak English may be provided reasonable access to the department's programs.

(b) The department shall comply with federal and state laws for program and facility accessibility.

Sec. 1006.002. 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. 1006.003. 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) "Commissioner" ["Director"] means the commissioner of motor vehicles [executive director of the Texas Department of 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 commissioner [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. Section 621.004, Transportation Code, is amended to read as follows:

Sec. 621.004. ADMISSIBILITY OF CERTIFICATE OF VERTICAL CLEARANCE. In each civil or criminal proceeding in which a violation of this chapter may be an issue, a certificate of the vertical clearance of a structure, including a bridge or underpass, signed by the commissioner [director] is admissible in evidence for all purposes.

SECTION 8.2J.04. 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 shall conduct a study to determine improvements to the regulation of oversize and overweight vehicles.

(c) In conducting the study, the division 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 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.05. 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.06. 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.07. 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.08. 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.09. 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.10. 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. 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 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 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.03. 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.04. 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.05. 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.06. 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(1), Transportation Code, is amended to read as follows:

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

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 2301.002(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.

SUBPART W. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY

SECTION 8.2W.01. Section 1(3), Article 4413(37), Revised Statutes, is amended to read as follows:

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

SECTION 8.2W.02. Section 2, Article 4413(37), Revised Statutes, is amended to read as follows:

Sec. 2. The Automobile Burglary and Theft Prevention Authority is a division [established] in the Texas Department of Motor Vehicles [Transportation]. [The authority is not an advisory body to the Texas Department of Transportation.]

SECTION 8.2W.03. Section 3(f), Article 4413(37), Revised Statutes, is amended to read as follows:

(f) It is a ground for removal from the authority if a member:

(1) does not have at the time of taking office [appointment] the qualifications required by Subsection (b) or is disqualified under Subsection (i) or (k) of this section;

(2) does not maintain during service on the authority the qualifications required by Subsection (b) or becomes disqualified under Subsection (i) or (k) of this section;

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

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

SECTION 8.2W.04. Sections 6(d) and (i), Article 4413(37), Revised Statutes, are repealed.

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, as effective April 1, 2009, 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, as effective April 1, 2009, 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. (a) All powers, duties, obligations, and rights of action of the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation under Article 4413(37), Revised Statutes, are transferred to the Automobile Burglary and Theft Prevention Authority Division of 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 the Automobile Burglary and Theft Prevention Authority Office 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 Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation are transferred to the Automobile Burglary and Theft Prevention Authority Division of the Texas Department of Motor Vehicles.

(c) The Automobile Burglary and Theft Prevention Authority Division of the Texas Department of Vehicles shall continue any proceeding involving the Automobile Burglary and Theft Prevention Authority Office 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 Automobile Burglary and Theft Prevention Authority Office 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 Automobile Burglary and Theft Prevention Authority Division of the Texas Department of Motor Vehicles.

(e) A rule adopted by the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation, the Texas Transportation Commission, or the director of the Texas Department of Transportation in connection with or relating to the Automobile Burglary and Theft Prevention Authority Office of that department continues in effect until it is amended or repealed by the Automobile Burglary and Theft Prevention Authority Division 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 Automobile Burglary and Theft Prevention Authority Office 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.

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 in the Texas rail relocation and improvement fund;

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

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

ARTICLE 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 traffic incidents, weather conditions, road construction, and alternative routes.

ARTICLE 11. EFFECTIVE DATE

SECTION 11.01. This Act takes effect September 1, 2009.