81(R) HB 300 - Senate Committee Report version

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	By: Isett, Pickett, Harper-Brown	H.B. No. 300
	(Senate Sponsor - Hegar)
	(In the Senate - Received from the House May 12, 2009;
	May 12, 2009, read first time and referred to Committee on
	Transportation and Homeland Security; May 23, 2009, reported
	adversely, with favorable Committee Substitute by the following
	vote: Yeas 9, Nays 0; May 23, 2009, sent to printer.)

	COMMITTEE SUBSTITUTE FOR H.B. No. 300	By: Carona

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 and the Texas Department of

Licensing and Regulation; providing penalties.

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

ARTICLE 1. GENERAL COMMISSION AND DEPARTMENT PROVISIONS

SECTION 1.01. Sections 201.051(a), (f), (g), and (j),

Transportation Code, are amended to read as follows:

(a) The Texas Transportation Commission consists of five

members appointed by the governor with the advice and consent of the

senate. If the governor does not appoint the commissioners before

February 28 of an odd-numbered year, the lieutenant governor shall

appoint the commissioners. A commissioner appointed by the

lieutenant governor is not subject to confirmation by the senate.

(f) An officer, employee, or paid consultant of a Texas

trade association in the field of road construction or maintenance,

aviation, or outdoor advertising is not eligible for appointment as

[~~or a Texas trade association of automobile dealers may not be~~] a

member of the commission.

(g) The spouse of an officer, manager, or paid consultant of

a Texas trade association in the field of road construction or

maintenance, aviation, or outdoor advertising is not eligible for

appointment as [~~or a Texas association of automobile dealers may~~

~~not be~~] a member of the commission.

(j) In this section, "Texas trade association" means a

[~~nonprofit,~~] cooperative[,] and voluntarily joined statewide

association of business or professional competitors in this state

designed to assist its members and its industry or profession in

dealing with mutual business or professional problems and in

promoting their common interest.

SECTION 1.02. Section 201.052, Transportation Code, is

amended to read as follows:

Sec. 201.052. TERMS. Members of the commission serve

two-year [~~staggered six-year~~] terms[~~, with the terms of either one~~

~~or two members~~] expiring February 1 of each odd-numbered year.

SECTION 1.03. Section 201.054, Transportation Code, is

amended to read as follows:

Sec. 201.054. COMMISSION MEETINGS. (a) The commission

shall hold regular meetings at least once a month and special

meetings at the call of the chair. Commissioners shall attend the

meetings of the commission. The chair shall oversee the

preparation of an agenda for each meeting and ensure that a copy is

provided to each commissioner at least seven days before the

meeting.

(b) The commission shall make a sound and video recording of

each regular and called meeting of the commission and of any

workshop conducted by the commission. Not later than 24 hours after

a meeting or workshop of the commission is adjourned, the

department shall post the sound and video recording of the meeting

or workshop on the department's Internet website.

SECTION 1.04. Subchapter B, Chapter 201, Transportation

Code, is amended by adding Section 201.060 to read as follows:

Sec. 201.060. ASSISTANTS TO COMMISSIONERS. An assistant to

a commissioner is required to report only to that commissioner. An

assistant to a commissioner may not be required to report to the

director.

SECTION 1.05. Subchapter C, Chapter 201, Transportation

Code, is amended by adding Sections 201.117 and 201.118 to read as

follows:

Sec. 201.117. TECHNOLOGICAL SOLUTIONS. The commission

shall implement a policy requiring the department to use

appropriate technological solutions to improve the department's

ability to perform its functions. The policy must ensure that the

public is able to interact with the department on the Internet.

Sec. 201.118. NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE

RESOLUTION PROCEDURES. (a) The commission shall develop and

implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter

2008, Government Code, for the adoption of department rules; and

(2) appropriate alternative dispute resolution

procedures under Chapter 2009, Government Code, to assist in the

resolution of internal and external disputes under the department's

jurisdiction.

(b) The department's procedures relating to alternative

dispute resolution must conform, to the extent possible, to any

model guidelines issued by the State Office of Administrative

Hearings for the use of alternative dispute resolution by state

agencies.

(1) coordinate the implementation of the policy

adopted under Subsection (a);

(2) serve as a resource for any training needed to

implement the procedures for negotiated rulemaking or alternative

dispute resolution; and

(3) collect data concerning the effectiveness of those

procedures, as implemented by the department.

SECTION 1.06. Subchapter C, Chapter 201, Transportation

Code, is amended by adding Section 201.119 to read as follows:

Sec. 201.119. ADVISORY COMMITTEES. (a) The commission may

establish, as it considers necessary, advisory committees on any of

the matters under its jurisdiction.

(b) The commission shall determine the purpose, duties, and

membership of each advisory committee.

SECTION 1.07. Sections 201.202(a) and (c), Transportation

Code, are amended to read as follows:

(a) The commission shall organize the department into

divisions to accomplish the department's functions and the duties

assigned to it, including divisions for:

(1) aviation;

(2) highways and roads;

(3) public transportation; and

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

as the department's chief financial officer must report directly to

the commission [~~to supervise a function previously performed by the~~

~~former State Department of Highways and Public Transportation,~~

~~Texas Department of Aviation, or Texas Turnpike Authority,~~

~~preference shall be given to a person employed in a similar position~~

~~in that former agency~~].

SECTION 1.08. 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 1.09. Subchapter D, Chapter 201, Transportation

Code, is amended by adding Sections 201.210, 201.211, 201.212, and

201.213 to read as follows:

Sec. 201.210. COMPLIANCE CERTIFICATION. (a) Not later

than September 1 of each year, the director and the department's

chief financial officer shall each certify in writing that the

director or the officer, as applicable:

(1) is responsible for establishing and maintaining

the department's internal controls;

(2) has evaluated the effectiveness of the

department's internal controls;

(3) has presented conclusions about the effectiveness

of the department's internal controls and applicable reporting

requirements; and

(4) has effectively complied with all applicable

legislative mandates.

(b) The director and the department's chief financial

officer shall submit the certifications required by Subsection (a)

to the governor, the lieutenant governor, the speaker of the house

of representatives, the chair of the standing committee of each

house of the legislature with primary jurisdiction over

transportation matters, and the Transportation Legislative

Oversight Committee created under Section 201.625.

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, a member of the commission, the

director, or a department employee may not use money under the

department's control or state resources to engage in an activity to

influence the passage or defeat of legislation, except as provided

by Subsection (c).

(b) Violation of Subsection (a) is grounds for dismissal of

an employee who directs or carries out the violation.

commission, the director, or a department employee from using state

resources to:

(1) provide public information or information

responsive to a request;

(2) communicate with officers and employees of the

federal government in pursuit of federal appropriations; or

(3) influence the passage or defeat of federal

legislation or regulation.

Sec. 201.212. ETHICS AFFIRMATION AND HOTLINE. (a) Each

department employee shall annually affirm the employee's

commitment to adhere to the ethics policy adopted under Section

572.051(c), Government Code.

(b) The department shall establish and operate a dedicated

telephone line that enables a person to call the number,

anonymously or not anonymously, to report alleged fraud, waste, or

abuse or an alleged violation of the ethics policy adopted under

Section 572.051(c), Government Code.

Sec. 201.213. LEGISLATIVE APPROPRIATIONS REQUEST.

Department staff shall deliver the department's legislative

appropriations request to the commission in an open meeting not

later than the 30th day before the commission adopts the

legislative appropriations request for submission to the

Legislative Budget Board.

SECTION 1.10. (a) Subchapter D, Chapter 201,

Transportation Code, is amended by adding Section 201.214 to read

as follows:

Sec. 201.214. ENVIRONMENTAL CERTIFICATION. (a) So as to

improve environmental accountability in the department, the

department shall establish a certification process for

environmental specialists. A person who successfully completes the

certification process may:

(1) perform analyses and reviews of environmental

reports and documents; and

(2) approve environmental reports and documents.

(b) The certification process must establish minimum levels

of training, including continuing education. A person certified by

the department must successfully complete continuing education on a

regular basis and be recertified each year.

(b) Not later than March 31, 2010, the Texas Department of

Transportation shall establish the certification process under

Section 201.214, Transportation Code, as added by Subsection (a) of

this section.

Texas Department of Transportation whose job includes working on

the development of environmental reports and documents must have

successfully completed the certification process under Section

201.214, Transportation Code, as added by Subsection (a) of this

section.

SECTION 1.11. Section 201.301(a), Transportation Code, is

amended to read as follows:

(a) The commission shall elect an executive director for the

department. The director must be [~~a registered professional~~

~~engineer in this state and~~] experienced and skilled in

transportation planning, development, construction, and

maintenance.

SECTION 1.12. Section 201.404(b), Transportation Code, is

amended to read as follows:

(b) The director or the director's designee shall develop a

system of annual performance evaluations that are based on

documented employee performance. All merit pay for department

employees must be based on the system established under this

subsection. If an annual performance evaluation indicates that an

employee's performance is unsatisfactory, the director or the

person designated by the director shall consider whether the

employee should be terminated. The annual performance evaluations

developed under this subsection must include the evaluation of an

employee's:

(1) professionalism;

(2) diligence; and

(3) responsiveness to directives and requests from the

director and the legislature.

SECTION 1.13. Section 201.703, Transportation Code, is

amended to read as follows:

Sec. 201.703. EXPENDITURES AND CONTRACTS FOR

TRANSPORTATION PROJECT OR PROGRAM [~~ROADS~~] NOT ON [~~THE~~] HIGHWAY

SYSTEM. (a) The department in conjunction with the Federal Highway

Administration may spend for a transportation program or for the

improvement of a transportation project [~~road~~] not on [in] the

state highway system money appropriated by the United States

Congress, [~~and~~] allocated by the United States secretary of

transportation to the department, and eligible under federal law

for expenditure on the project or program [~~road~~]. That federal

money may be matched or supplemented by an amount of state money

necessary for proper construction and performance of the work.

(b) State money may not be used exclusively for the

construction of a road not on [in] the state highway system.

construction and engineering, overhead, and other costs on which

the application of federal money is prohibited or impractical and

to the cost of providing federally required oversight.

(d) The department may:

(1) contract for work involving a road that is not on

the state highway system under this section in accordance with the

law that would apply to the department if the work were on the state

highway system; or

(2) authorize a local government to contract for the

work in accordance with commission rule or with the law that would

apply to the local government for a comparable project.

SECTION 1.14. Section 202.021, Transportation Code, is

amended by amending Subsection (e) and adding Subsection (e-1) to

read as follows:

(e) The commission may waive payment for real property

transferred to a governmental entity under this section if:

(1) the estimated cost of future maintenance on the

property equals or exceeds the fair value of the property; or

(2) the property is a highway right-of-way and the

governmental entity assumes or has assumed jurisdiction, control,

and maintenance of the right-of-way for public road purposes.

(e-1) If property described by Subsection (e)(2) ceases to

be used for public road purposes, the real property rights

transferred under this section terminate and automatically revert

to and vest in this state.

SECTION 1.15. Section 203.031, Transportation Code, is

amended by adding Subsection (a-1) to read as follows:

(a-1) In the exercise of its authority to manage access to

or from a controlled access highway under Subsection (a)(2) or (4),

the commission by rule shall:

(1) require that a decision by a department district

office denying a request for access to a specific location on a

controlled access highway be in writing and include the reasons for

the denial;

(2) provide procedures for appealing a denial under

Subdivision (1), including procedures that:

(A) allow the applicant to appeal the denial to

the department's design division before the 31st day after the date

written notice of the denial is given to the applicant;

(B) provide that if an appeal under Paragraph (A)

is not decided before the 91st day after the date the appeal was

filed, the access applied for must be granted; and

the design division to the director and, if the decision is

affirmed, to a board of variance appointed by the director and

composed of at least three persons who may not be below the level of

department division director, office director, or district

engineer and who were not involved in the original decision to deny

access;

(3) provide that properly platted access points to or

from a controlled access highway that are located on undeveloped

property are subject to the access management standards in effect

at the time the points were platted regardless of when the initial

request for access was submitted to the department, but only if:

(A) development of the property begins and the

request for access at the platted locations is submitted to the

department before the fifth anniversary of the date the plat was

recorded; and

(B) the design of the highway facility in the

vicinity of the platted access points did not materially change

after the date the plat was recorded so as to significantly impact

traffic patterns to the extent that the platted access points

present a threat to public safety;

(4) require that:

(A) owners of land adjacent to a proposed highway

construction project be provided written notice of the project at

least 60 days before the date construction begins if the project

will permanently alter permitted access to or from a controlled

access highway at the owners' existing locations; and

(B) the access described by Paragraph (A) be

reinstated to the most practicable extent possible after due

consideration of the impact on highway safety, mobility, and

efficient operation of any changed traffic patterns resulting from

the construction;

(5) adopt criteria for determining when a variance to

access management standards may be granted, including criteria

that, in addition to highway safety, mobility, and efficient

operation concerns, takes into consideration any of the following

consequences resulting from denial of the owner's request for

access to a specific location on a controlled access highway that

may impact a property owner:

(A) denial of reasonable access to the property;

and

(B) undue hardship on a business located on the

property; and

(6) clarify that the remodeling or demolition and

rebuilding of a business does not cause new access management

standards to apply unless the department makes an affirmative

finding in writing that the remodeled or rebuilt business will

significantly impact traffic patterns to the extent that the

current access location presents a threat to public safety.

SECTION 1.16. Subchapter C, Chapter 202, Transportation

Code, is amended by adding Section 202.061 to read as follows:

Sec. 202.061. ENVIRONMENTAL COVENANT. (a) The commission

may enter into an environmental covenant for the purpose of

subjecting real property in which the department has an ownership

interest to a plan or the performance of work for environmental

remediation if the plan or work performed is first approved by the

Texas Commission on Environmental Quality or a federal agency with

the authority to approve the plan or work under the applicable laws

and regulations.

(b) The environmental covenant must:

(1) contain a legally sufficient description of the

property subject to the covenant;

(2) describe the nature of the contamination on or

under the property, including the contaminants, the source, if

known, and the location and extent of the contamination; and

(3) describe the activity and use limitations on the

property.

remediation must:

(1) meet applicable state and federal standards for

environmental remediation; and

(2) bring the property into compliance with zoning or

land use controls imposed on the property by each applicable local

government.

(d) For each property for which the commission may enter

into an environmental covenant, the commission by order may

authorize the executive director to execute an environmental

covenant on behalf of the commission. Not less than 30 days before

the date the commission considers a proposed order under this

subsection, the commission must mail to each owner of a property

interest in the applicable property, each adjacent landowner, and

each applicable local government a notice that includes a clear and

concise description of the proposal to enter into the environmental

covenant and a statement of the manner in which written comments may

be submitted to the commission.

SECTION 1.17. Subchapter H, Chapter 201, Transportation

Code, is amended by adding Section 201.625 to read as follows:

Sec. 201.625. TRANSPORTATION LEGISLATIVE OVERSIGHT

COMMITTEE. (a) In this section, "committee" means the

Transportation Legislative Oversight Committee.

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

(1) the chair and all members of the Senate Committee

on Transportation and Homeland Security;

(2) the chair and all members of the House Committee on

Transportation;

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

(4) the chair of the House Committee on

Appropriations.

Homeland Security and the chair of the House Committee on

Transportation serve as the presiding officer of the committee on

an alternating basis, with the chair of the Senate Committee on

Transportation and Homeland Security serving as the first chair of

the committee. The presiding officer of the committee serves a

two-year term that expires February 1 of each odd-numbered year.

(d) The committee has all other powers and duties provided

to a special committee by:

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

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

representatives; and

(3) policies of the senate and house committees on

administration.

(e) The committee shall meet at least quarterly and at the

call of the presiding officer.

(f) The committee shall monitor the following:

(1) implementation of the changes in law made as a

result of the sunset review process;

(2) the progress made in transference of powers,

duties, and property from the Texas Department of Transportation to

the Texas Department of Motor Vehicles;

(3) any proposed changes in the organization or

structure of the department;

(4) significant transportation policy initiatives at

both the state and federal levels;

(5) major projects of the department;

(6) the financial issues facing the department,

including the amounts and usage of dedicated and non-dedicated

state highway funds, the impacts of various bond programs, the

short-term and long-term cash forecast of the department, possible

revenue sources for the rail relocation and improvement fund, and

additional revenue sources for the Texas Mobility Fund; and

(7) reports on any subject requested by the committee

or determined by the department to be beneficial to the committee.

(g) The committee shall require the department to provide

reports to the committee as necessary to effectively perform the

committee's duties under Subsection (f).

(h) When the department files a quarterly financial

statement required by Section 201.107(a) with the governor, the

department shall provide a copy of that statement to the committee.

(i) Notwithstanding any other provision of this chapter,

the committee may not recommend specific projects or recommend

funding for specific projects at the department.

(j) The department shall enter into an interagency

agreement with the legislature, a chamber of the legislature, or a

legislative agency to provide funding to support the operation of

the committee from available amounts appropriated to the

department. The amount provided by the department for a state

fiscal biennium may not exceed $1 million.

(k) This section expires August 31, 2013.

SECTION 1.18. Subchapter B, Chapter 223, Transportation

Code, is amended by adding Section 223.0411 to read as follows:

Sec. 223.0411. REPORT. (a) Not later than December 31,

2009, the comptroller shall submit a report to the governor, the

Transportation Legislative Oversight Committee, and the

Legislative Budget Board as provided by this section. In

developing the report, the comptroller shall collaborate with:

(1) the department;

(2) the Texas Board of Professional Engineers;

(3) the Association of General Contractors; and

(4) the Consultant Engineer Council.

(b) The report must include:

(1) the number of licensed professional engineers and

graduate engineers employed by the department in each of the

previous five state fiscal years aggregated by work function and by

strategy;

(2) the dollar amount of highway and bridge projects

awarded by the department in each of the previous five state fiscal

years;

(3) the cost, including all direct and indirect costs,

aggregated by type of project per $100 million, of highway and

bridge projects awarded by the department in each of the previous

five state fiscal years, including the percentage of those projects

for which activities were conducted by:

(A) department personnel;

(B) private sector personnel; and

personnel;

(4) an analysis of the dollar volume impact to the

department's highway and bridge construction and maintenance

program per $100 million of projects awarded for each one percent

increase in production by private sector personnel offset by a

reduction in the activities of department personnel, considering

the cost to perform activities described by Subdivision (3);

(5) a recommended plan for staffing and usage of

department and private sector personnel in the planning of

department highway and bridge projects for the next 10-year period

based on projected funding for the department;

(6) an attrition plan to achieve the department

staffing levels recommended in the plan under Subdivision (5)

before January 1, 2013, if those recommended levels are lower than

the corresponding staffing levels on September 1, 2009; and

(7) a detailed description as to how the results of the

report will be incorporated in the department's ongoing

restructuring efforts.

conducted by an independent contract cost accounting firm that is

knowledgeable of governmental and private sector accounting

practices.

(d) The department may not hire a new employee to fill a

vacancy in a position paid out of funds appropriated to the

department for the planning, design, and management of

transportation projects in the General Appropriations Act

(Strategy A.1.1., or its successor) until:

(1) the comptroller submits the report required by

this section; and

(2) the Legislative Budget Board approves the

recommendations contained in the report.

(e) This section expires September 1, 2011.

SECTION 1.19. Subchapter F, Chapter 224, Transportation

Code, is amended by adding Section 224.1544 to read as follows:

Sec. 224.1544. VEHICLE SIZE AND WEIGHT LIMITS. (a) The

commission may authorize the operation of a vehicle or combination

that exceeds a height, length, or gross weight limitation in

Subchapter C, Chapter 621, on a lane of a highway that is designated

as an exclusive lane under Section 224.1541 if supported by an

engineering and traffic study that includes an analysis of the

structural capacity of bridges and pavements, current and projected

traffic patterns and volume, and potential effects on public

safety.

(b) This section does not authorize the operation of a

vehicle with an axle weight that is greater than that authorized by

Chapter 621, 622, or 623.

SECTION 1.20. Section 228.001, Transportation Code, is

amended by adding Subdivisions (2-a) and (7) to read as follows:

(2-a) "Operate" and "operation" include the

processing and collecting of tolls and the providing of related

customer services.

(7) "Registered owner" means:

(A) an owner as defined by Section 502.001; or

(B) the owner of a vehicle as shown on the vehicle

registration records of the department or the analogous department

or agency of another state or country.

SECTION 1.21. (a) Section 228.004, Transportation Code, is

amended to read as follows:

Sec. 228.004. [~~PROMOTION OF~~] TOLL PROJECT INFORMATION.

(a) The department may, notwithstanding Chapter 2113, Government

Code, engage in marketing, advertising, and other activities to

provide information relating to pending or operating [~~promote the~~

~~development and use of~~] toll projects, including information

concerning the methods of paying and collecting tolls, and may

enter into contracts or agreements necessary to procure marketing,

advertising, or informational [~~other promotional~~] services from

outside service providers.

(b) This section does not authorize the department to engage

in marketing, advertising, or other activities for the purpose of

influencing public opinion about the use of toll roads or the use of

tolls as a financial mechanism.

(b) The change in law made by this section applies only to a

contract or agreement entered into or renewed under Section

228.004, Transportation Code, on or after the effective date of

this Act. A contract or agreement entered into or renewed under

that section before the effective date of this Act is governed by

the law in effect immediately before that date, and that law is

continued in effect for that purpose.

SECTION 1.22. Subsection (a), Section 228.054,

Transportation Code, is amended to read as follows:

(a) Except as provided by Subsection (e) or Section

228.0545, the operator of a vehicle, other than an authorized

emergency vehicle, as defined by Section 541.201, that is driven or

towed through a toll collection facility shall pay the proper toll.

The exemption from payment of a toll for an authorized emergency

vehicle applies regardless of whether the vehicle is:

(1) responding to an emergency;

(2) displaying a flashing light; or

(3) marked as an emergency vehicle.

SECTION 1.23. Subchapter B, Chapter 228, Transportation

Code, is amended by adding Section 228.0545 to read as follows:

Sec. 228.0545. ALTERNATIVE TOLLING METHODS. (a) As an

alternative to requiring payment of a toll at the time a vehicle is

driven or towed through a toll collection facility, the department

may use video billing or other tolling methods to permit the

registered owner of the vehicle to pay the toll on a later date.

(b) The department may use automated enforcement technology

authorized by Section 228.058 to identify the registered owner of

the vehicle for purposes of billing, collection, and enforcement

activities.

registered owner of the vehicle a written notice of the total amount

due. The notice must specify the date, which may not be earlier

than the 15th day after the date the notice is mailed, by which the

amount due must be paid. The registered owner shall pay the amount

due on or before the date specified in the notice.

(d) The department shall send the notice required by

Subsection (c) and subsequent notices to:

(1) the registered owner's address as shown in the

vehicle registration records of the department; or

(2) an alternate address provided by the owner or

derived through other reliable means.

(e) On or before October 1 of each year, the department

shall conduct a cost analysis to determine a policy on whether to

mail a notice under Subsection (c) after each time a vehicle is

driven or towed through a toll collection facility or only after a

certain number of times a vehicle is driven or towed through a

facility. The policy must ensure that the cost to the department of

collecting tolls as provided by this section does not exceed the

amount of the tolls and fees collected.

SECTION 1.24. Section 228.055, Transportation Code, is

amended by amending Subsections (a), (b), (d), (e), (h), and (i),

and adding Subsection (d-1) to read as follows:

(a) In the event of nonpayment of the [~~proper~~] toll as

required by Section 228.054 or 228.0545, on issuance of a written

notice of nonpayment, the registered owner of the nonpaying vehicle

is liable for the payment of both the proper toll and an

administrative fee.

(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 department or an alternate address provided by the

owner or derived through other reliable means. The notice of

nonpayment shall be sent 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 fee for each event of nonpayment under Section

228.054 or 228.0545.

(d) It is an exception to the application of Subsection (a)

or (c) if the registered owner of the vehicle is a lessor of the

vehicle and not later than the 30th day after the date the notice of

nonpayment is mailed provides to the department:

(1) a copy of the rental, lease, or other contract

document covering the vehicle on the date of the nonpayment under

Section 228.054 or the date the vehicle was driven or towed through

a toll collection facility that results in a notice issued under

Section 228.0545, with the name and address of the lessee clearly

legible; or

(2) electronic data, in a format agreed on by the

department and the lessor, other than a photocopy or scan of a

rental or lease contract, that contains the information required

under Sections 521.460(c)(1), (2), and (3) covering the vehicle on

the date of the nonpayment under Section 228.054 or the date the

vehicle was driven or towed through a toll collection facility that

results in a notice issued under Section 228.0545.

(d-1) If the lessor provides the required information

within the period prescribed under Subsection (d), the department

may send a notice of nonpayment to the lessee at the address

provided under Subsection (d) [~~shown on the contract document~~] by

first class mail before the 30th day after the date of receipt of

the required information from the lessor. The lessee 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 fee within the time specified by the

notice of nonpayment commits an offense. The lessee shall pay a

separate toll and administrative fee for each event of nonpayment.

Each failure to pay a toll or administrative fee under this

subsection is a separate offense.

(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 228.054 occurred or before the date the vehicle was

driven or towed through a toll collection facility that results in a

notice issued under Section 228.0545, submitted written notice of

the transfer to the department in accordance with Section 520.023,

and, before the 30th day after the date the notice of nonpayment is

mailed, provides to the department 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 department 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 department may send all subsequent notices of

nonpayment associated with the vehicle to the person to whom

ownership of the vehicle was transferred at the address provided by

the former owner or an alternate address provided by the subsequent

owner or derived through other reliable means. 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 fee within the time

specified by the notice of nonpayment commits an offense. The

subsequent owner shall pay a separate toll and administrative fee

for each event of nonpayment under Section 228.054 or 228.0545.

Each failure to pay a toll or administrative fee 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~~

~~department or the analogous department or agency of another state~~

~~or country.~~

[~~(i)~~] The department may contract, in accordance with

Section 2107.003, Government Code, with a person to collect the

unpaid toll and administrative fee before referring the matter to a

court with jurisdiction over the offense.

SECTION 1.25. Subsections (b) and (c), Section 228.056,

Transportation Code, are amended to read as follows:

(b) In the prosecution of an offense under Section

228.055(c), (d-1) [~~(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 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 or on the date the vehicle was driven or towed

through a toll collection facility that results in a notice issued

under Section 228.0545; and

(3) a copy of the rental, lease, or other contract

document, or the electronic data provided to the department under

Section 228.055(d), covering the vehicle on the date of the

underlying event of nonpayment under Section 228.054 or on the date

the vehicle was driven or towed through a toll collection facility

that results in a notice issued under Section 228.0545 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 or when the vehicle was driven or towed

through a toll collection facility that results in a notice issued

under Section 228.0545.

(d-1) [~~(d)~~], or (e) that the motor vehicle in question was stolen

before the failure to pay the proper toll occurred and had not been

recovered before the failure to pay occurred, but only if the theft

was reported to the appropriate law enforcement authority before

the earlier of:

(1) the occurrence of the failure to pay; or

(2) eight hours after the discovery of the theft.

SECTION 1.26. Section 228.057, Transportation Code, is

amended by adding Subsections (g) and (h) to read as follows:

(g) The department may, following closure of an electronic

toll collection customer account and at the request of the account

holder, refund the balance of funds in the account after making a

deduction for any outstanding tolls and fees.

(h) The department may enter into an agreement with a

governmental or private entity regarding the use of a transponder

issued by the department and the corresponding electronic toll

collection customer account to pay for parking services offered by

the entity.

SECTION 1.27. Subsection (b), Section 228.058,

Transportation Code, is amended to read as follows:

(b) Automated enforcement technology approved by the

department under Subsection (a) may be used only for the purpose of

producing, depicting, photographing, or recording an image that

depicts that portion of a vehicle necessary to establish the

classification of vehicle and the proper toll to be charged, the

license plate number, and the state or country of registration,

including an image:

(1) of a license plate attached to the front or rear of

a vehicle; and

(2) showing the vehicle dimensions, the presence of a

trailer, and the number of axles.

SECTION 1.28. (a) Section 228.201, Transportation Code, is

amended by amending Subsection (a) and adding Subsection (a-1) to

read as follows:

(a) The [~~Except as provided by Section 228.2015, the~~]

department may not operate a nontolled state highway or a segment of

a nontolled state highway as a toll project, and may not transfer a

highway or segment to another entity for operation as a toll

project, unless:

(1) the commission by order designated the highway or

segment as a toll project before the contract to construct the

highway or segment was awarded;

(2) the highway or segment was open to traffic as a

turnpike project on or before September 1, 2005;

(3) the project was designated as a toll project in a

plan or program of a metropolitan planning organization on or

before September 1, 2005;

(4) the highway or segment is reconstructed so that

the number of nontolled lanes on the highway or segment is greater

than or equal to the number in existence before the reconstruction;

(5) a facility that has access, function, and control

devices similar to the converted highway or segment before

conversion is constructed adjacent to the highway or segment so

that the number of nontolled lanes on the converted highway or

segment and the adjacent facility together is greater than or equal

to the number in existence on the converted highway or segment

before the conversion; or

(6) subject to Subsection (b), the highway or segment

was open to traffic as a high-occupancy vehicle lane on May 1,

2005[~~; or~~

[~~(7)~~ ~~the commission converts the highway or segment to~~

~~a toll facility by:~~

[~~(A)~~ ~~making the determination required by~~

~~Section 228.202;~~

[~~(B)~~ ~~conducting the hearing required by Section~~

~~228.203; and~~

[~~(C)~~ ~~obtaining county and voter approval as~~

~~required by Sections 228.207 and 228.208~~].

(a-1) Subsection (a) does not apply to a port of entry, as

defined by Section 621.001.

(b) Sections 228.202, 228.203, 228.207, and 228.208,

Transportation Code, are repealed.

228.201(a)(5), Transportation Code, does not apply to:

(1) the State Highway 130, Segments 5 and 6, project in

Travis, Caldwell, and Guadalupe Counties;

(2) the DFW Connector project in Tarrant and Dallas

Counties (State Highway 114 from State Highway 114L Business to

east of International Parkway and State Highway 121 from north of FM

2499 to south of State Highway 360);

(3) the North Tarrant Express project in Tarrant and

Dallas Counties (IH 820 and State Highway 121/State Highway 183

from IH 35W to State Highway 161, IH 820 east from State Highway

121/State Highway 183 to Randol Mill Road, and IH 35W from IH 30 to

State Highway 170);

(4) the IH 635 managed lanes project in Dallas County

(IH 635 from east of Luna Road to Greenville Avenue and IH 35E from

south of the Loop 12/IH 35E split to south of Valwood Parkway); or

(5) the U.S. Highway 290 project from east of U.S.

Highway 183 to east of Farm-to-Market Road 734 in Travis County.

(d) A project described by Subsection (c) of this section is

governed by Subchapter E, Chapter 228, Transportation Code, as that

subchapter existed immediately before the effective date of this

Act, and that subchapter is continued in effect for that purpose.

SECTION 1.29. Section 284.0701, Transportation Code, is

amended by amending Subsection (d) and adding Subsection (d-1) to

read as follows:

(d) It is an exception to the application of Subsection (a)

or (c) if the registered owner of the vehicle is a lessor of the

vehicle and not later than the 30th day after the date the notice of

nonpayment is mailed provides to the authority:

(1) a copy of the rental, lease, or other contract

document covering the vehicle on the date of the nonpayment under

Section 284.070, with the name and address of the lessee clearly

legible; or

(2) electronic data, other than a photocopy or scan of

a rental or lease contract, that contains the information required

under Sections 521.460(c)(1), (2), and (3) covering the vehicle on

the date of the nonpayment under Section 284.070.

(d-1) If the lessor provides the required information

within the period prescribed under Subsection (d), the authority

may send a notice of nonpayment to the lessee at the address

provided under Subsection (d) [~~shown on the contract document~~] by

first class mail before the 30th day after the date of receipt of

the required information from the lessor. The lessee 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 lessee shall pay a

separate toll and administrative cost for each event of nonpayment.

Each failure to pay a toll or administrative cost under this

subsection is a separate offense.

SECTION 1.30. Sections 284.0702(b) and (c), Transportation

Code, are amended to read as follows:

(b) In the prosecution of an offense under Section

284.0701(c), (d-1) [~~(d)~~], or (e):

(1)[,] a computer record of the 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

284.070 occurred; and

(2) a copy of the rental, lease, or other contract

document, or the electronic data provided to the authority under

Section 284.0701(d), covering the vehicle on the date of the

underlying event of nonpayment under Section 284.070 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

284.070 occurred.

284.0701(c), (d-1) [~~(d)~~], or (e) that the vehicle in question was

stolen before the failure to pay the proper toll occurred and had

not been recovered before the failure to pay occurred, but only if

the theft was reported to the appropriate law enforcement authority

before the earlier of:

(1) the occurrence of the failure to pay; or

(2) eight hours after the discovery of the theft.

SECTION 1.31. Section 366.178, Transportation Code, is

amended by amending Subsections (f) and (i) and adding Subsection

(i-1) to read as follows:

(f) In the prosecution of a violation for nonpayment, proof

that the vehicle passed through a toll collection facility without

payment of the proper toll together with proof that the defendant

was the registered owner or the driver of the vehicle when the

failure to pay occurred, establishes the nonpayment of the

registered owner. The proof may be by testimony of a peace officer

or authority employee, video surveillance, or any other reasonable

evidence, including a copy of the rental, lease, or other contract

document or the electronic data provided to the authority under

Subsection (i) that shows the defendant was the lessee of the

vehicle when the underlying event of nonpayment occurred.

(i) A registered owner who is the lessor of a vehicle for

which a notice of nonpayment has been issued is not liable if, not

later than the 30th day after the date the notice of nonpayment is

mailed, the registered owner provides to the authority:

(1) a copy of the rental, lease, or other contract

document [~~lease agreement~~] covering the vehicle on the date of the

nonpayment, with the[~~. The~~] name and address of the lessee [~~must~~

be] clearly legible; or

(2) electronic data, other than a photocopy or scan of

a rental or lease contract, that contains the information required

under Sections 521.460(c)(1), (2), and (3) covering the vehicle on

the date of the nonpayment under this section.

(i-1) If the lessor timely provides the required

information under Subsection (i), the lessee of the vehicle on the

date of the violation is considered to be the owner of the vehicle

for purposes of this section. The lessee is subject to prosecution

for failure to pay the proper toll if the authority sends a notice

of nonpayment to the lessee by first-class mail not later than the

30th day after the date of the receipt of the information from the

lessor.

SECTION 1.32. Section 370.177, Transportation Code, is

amended by amending Subsections (e), (g), and (i) and adding

Subsection (e-1) to read as follows:

(e) It is an exception to the application of Subsection (b)

or (d) that the registered owner of the vehicle is a lessor of the

vehicle and not later than the 30th day after the date the notice of

nonpayment is mailed provides to the authority:

(1) a copy of the rental, lease, or other contract

document covering the vehicle on the date of the nonpayment under

Subsection (a), with the name and address of the lessee clearly

legible; or

(2) electronic data, other than a photocopy or scan of

a rental or lease contract, that contains the information required

under Sections 521.460(c)(1), (2), and (3) covering the vehicle on

the date of the nonpayment under Subsection (a).

(e-1) If the lessor provides the required information

within the period prescribed under Subsection (e), the authority

may send a notice of nonpayment to the lessee at the address

provided under Subsection (e) [~~shown on the contract document~~] by

first class mail before the 30th day after the date of receipt of

the required information from the lessor. The lessee 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 fee within the time specified by the

notice of nonpayment commits an offense. The lessee shall pay a

separate toll and administrative fee for each event of nonpayment.

Each failure to pay a toll or administrative fee under this

subsection is a separate offense.

(g) An offense under Subsection (d), (e-1) [~~(e)~~], or (f) is

a misdemeanor punishable by a fine not to exceed $250.

(i) In the prosecution of an offense under this section,

proof that the vehicle passed through a toll collection facility

without payment of the proper toll together with proof that the

defendant was the registered owner or the driver of the vehicle when

the failure to pay occurred, establishes the nonpayment of the

registered owner. The proof may be by testimony of a peace officer

or authority employee, video surveillance, or any other reasonable

evidence, including:

(1) evidence obtained by automated enforcement

technology that the authority determines is necessary, including

automated enforcement technology described by Sections 228.058(a)

and (b); or

(2) a copy of the rental, lease, or other contract

document or the electronic data provided to the authority under

Subsection (e) that shows the defendant was the lessee of the

vehicle when the underlying event of nonpayment occurred.

SECTION 1.33. 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) The department shall conduct a study to determine

improvements to the regulation of oversize and overweight vehicles.

(b) In conducting the study, the department 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.

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.

(d) This section expires September 1, 2011.

SECTION 1.34. Section 201.0545, Transportation Code, is

repealed.

SECTION 1.35. Section 545.353, Transportation Code, is

amended by adding Subsection (h-2) to read as follows:

(h-2) Notwithstanding Section 545.352(b), the commission

may establish a speed limit of 85 miles per hour on a part of the

state highway system if:

(1) as a result of an engineering and traffic

investigation the commission determines that 85 miles per hour is a

reasonable and safe speed for that part of the highway system; and

(2) that part of the highway system is designed for

travel at a speed of 85 miles per hour or more.

SECTION 1.36. (a) The terms of the members of the Texas

Transportation Commission serving on January 31, 2010, expire

February 1, 2011.

(b) Not later than January 31, 2011, the governor shall

appoint the members of the Texas Transportation Commission in

accordance with Section 201.051(a), Transportation Code, as

amended by this article, to serve terms beginning February 1, 2011.

ARTICLE 2. TRANSPORTATION PLANNING AND PROJECT DEVELOPMENT PROCESS

SECTION 2.01. Section 201.001(a), Transportation Code, is

amended by adding Subdivision (4) to read as follows:

(4) "Metropolitan planning organization" has the

meaning assigned by Section 472.031, Transportation Code.

SECTION 2.02. Section 201.601, Transportation Code, is

amended to read as follows:

Sec. 201.601. STATEWIDE TRANSPORTATION PLAN. (a) The

department shall develop a statewide transportation plan covering a

period of not less than 25 years that contains all modes of

transportation, including:

(1) highways and turnpikes;

(2) aviation;

(3) mass transportation;

(4) railroads and high-speed railroads; and

(5) water traffic.

(a-1) The plan must:

(1) contain specific, long-term transportation goals

for the state and measurable targets for each goal;

(2) identify priority corridors, projects, or areas of

the state that are of particular concern to the department in

meeting the goals established under Subdivision (1); and

(3) contain a participation plan for obtaining input

on the goals and priorities identified under this subsection from:

(A) other state agencies;

(B) political subdivisions;

201.981(2); and

(D) members of the general public.

(b) [~~In developing the plan, the department shall seek~~

~~opinions and assistance from other state agencies and political~~

~~subdivisions that have responsibility for the modes of~~

~~transportation listed by Subsection (a).~~] As appropriate, the

department and one or more of the entities listed in Subsection

(a-1)(3) [~~such an agency or political subdivision~~] shall enter into

a memorandum of understanding relating to the planning of

transportation services.

financially constrained and identifies transportation improvements

designed to relieve congestion. In developing this component of

the plan, the department shall seek opinions and assistance from

officials who have local responsibility for modes of transportation

listed in Subsection (a).

(d) If there is a conflict between obligations and

requirements imposed in federal law governing the transportation

planning, project development, and programming process for the

department and planning organizations as defined in Section

201.981(2), and those imposed in this title, federal law controls

and the commission may take any action that is necessary in its

reasonable judgment to comply with any federal law to enable this

state to receive federal aid funds.

(e) The department shall update the plan every five years or

more frequently as necessary. [~~The plan shall include a component,~~

~~published annually, that describes the evaluation of~~

~~transportation improvements based on performance measures, such as~~

~~indices measuring delay reductions or travel time improvements.~~

~~The department shall consider the performance measures in selecting~~

~~transportation improvements.~~]

SECTION 2.03. Subchapter H, Chapter 201, Transportation

Code, is amended by adding Sections 201.6012, 201.6015, 201.621,

201.622, and 201.623 to read as follows:

Sec. 201.6012. INTEGRATION OF PLANS AND POLICY EFFORTS. In

developing each of its transportation plans and policy efforts, the

department must clearly reference the 25-year plan developed under

Section 201.601 and specify how the plan or policy effort supports

or otherwise relates to the specific goals contained in that plan.

Sec. 201.6015. DELEGATION OF DUTIES OR POWERS TO

METROPOLITAN PLANNING ORGANIZATION. A metropolitan planning

organization may agree to accept additional responsibilities

delegated by the commission concerning transportation planning and

project selection.

Sec. 201.621. METROPOLITAN TRANSPORTATION PLAN. (a) A

metropolitan planning organization shall prepare and periodically

update a long-range transportation plan for its service area as

required by federal law.

(b) The first 10 years of the long-range plan must be

identical to the plan developed under Section 201.983.

metropolitan planning organization shall provide to residents in

its boundaries, affected public agencies, and other interested

parties a reasonable opportunity to comment on the long-range

transportation plan.

(d) A metropolitan planning organization shall make each of

its long-range transportation plans readily available for public

review and shall deliver each plan to the commission at the times

and in the manner and format established by the commission. The

format of the plan must be in plain English and easily reviewable

and understandable. The metropolitan planning organization shall

update the plan every year or more frequently as necessary.

Sec. 201.622. COOPERATION WITH METROPOLITAN PLANNING

ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The

department and metropolitan planning organizations shall cooperate

to develop mutually acceptable assumptions for the purposes of

long-range federal and state funding forecasts that are consistent

with the criteria established by the commission under Section

201.987 and use those criteria to guide long-range planning.

Sec. 201.623. RECOMMENDATIONS FROM RURAL PLANNING

ORGANIZATION. A rural planning organization may make

recommendations to the commission concerning the selection of

transportation projects, systems, or programs to be undertaken in

the boundaries of the rural planning organization.

SECTION 2.04. Section 201.617(a), Transportation Code, as

transferred by Chapter 281 (H.B. 2702), Acts of the 79th

Legislature, Regular Session, 2005, is amended to read as follows:

(a) If authorized by an applicable regulatory authority, to

mitigate an adverse environmental impact that is a direct result of

the construction, improvement, or maintenance of a state highway or

the construction, improvement, or maintenance of a facility used in

connection with the construction, maintenance, or operation of a

state highway improvement project, the department may:

(1) pay a fee to an appropriate public agency or

private entity in lieu of acquiring or agreeing to manage property;

(2) transfer any interest in real property to an

appropriate public agency or private entity, as authorized by the

regulatory authority that requires the mitigation, with or without

monetary consideration if the property is used or is proposed to be

used for mitigation purposes; or

(3) contract with any public or private entity for the

management of property owned by the department and used for

mitigation purposes.

SECTION 2.05. Subchapter I, Chapter 201, Transportation

Code, is amended by adding Sections 201.711 and 201.712 to read as

follows:

Sec. 201.711. ELIGIBILITY FOR STATE ALLOCATION OF FUNDING;

BOARD MEMBERSHIP. (a) To be eligible to receive funds from this

state for transportation projects under Section 201.988, not more

than 50 percent of the voting members of the policy board of a

metropolitan planning organization must be elected officials who

are elected in the boundaries of the metropolitan planning

organization.

(b) A metropolitan planning organization that is not

eligible under Subsection (a) may redesignate the board in

compliance with the redesignation procedures in 23 U.S.C. Section

134 to become eligible to receive an allocation of funds under

Section 201.988.

officer or a member of the governing body of a municipality, a

county judge, a county commissioner, a state representative, or a

state senator.

Sec. 201.712. FUNDS FOR RURAL PLANNING ORGANIZATION. The

department may use money in the state highway fund to fund the

operations of a rural planning organization.

SECTION 2.06. (a) Subchapter J, Chapter 201,

Transportation Code, is amended by adding Sections 201.8005,

201.807, 201.808, 201.809, 201.810, and 201.811 to read as follows:

Sec. 201.8005. DEFINITION. In this subchapter,

"transportation project" has the meaning assigned by Section

201.981.

Sec. 201.807. 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 information regarding all of the

department's transportation projects contained in the project

development program required by Section 201.982 or under

construction. The information must be easily accessible,

understandable, and searchable. The project information reporting

system must contain:

(1) information about each of the department's

transportation projects included in the project development

program, including:

(A) the status of the project;

(B) each source of funding for the project;

project;

(D) timelines for completing the project;

(E) a list of the department employees

responsible for the project, including information as to how each

person on that list may be contacted; and

(F) the results of the annual review required by

Subsection (d);

(2) a representational color-coded map showing the

location of the transportation projects and containing the

information described by Subdivision (1);

(3) each construction work zone for a transportation

project under construction that has a total construction timeline

that exceeds six months or the cost of which exceeds $5 million,

including information about:

(A) the number of lanes that will remain open

during the project's construction phase;

(B) the location and duration of each lane

closure; and

each lane closure;

(4) road maintenance transportation projects that are

planned or under construction, including the condition of each road

before the road maintenance transportation project; and

(5) each fund source for the department's funds and all

expenditures made by the department, for each of the department's

transportation projects, reported by:

(A) department district;

(B) program funding category as required by

Section 201.982(b)(2); and

comprehensive development agreement or a toll project.

(b) In developing the project information reporting system,

the department shall collaborate with:

(1) the Transportation Legislative Oversight

Committee;

(2) local transportation entities as defined by

Section 201.981; and

(3) members of the general public.

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

transportation project included in the department's project

development program, to determine the completion rates of the

projects and whether the projects were completed on time.

(e) The department shall update the information contained

in the project information reporting system at least quarterly and

the representational map at least annually.

Sec. 201.808. TRANSPORTATION PROJECT AND PERFORMANCE

REPORTS. (a) The department shall develop a process to identify

and distinguish between the transportation projects that are

required to maintain the state infrastructure and the

transportation projects that would improve the state

infrastructure in a manner consistent with the statewide

transportation plan required by Section 201.601.

(b) The department shall establish a transportation project

and performance reporting system that makes available in a central

location on the department's Internet website easily accessible and

searchable information regarding the priority classifications

established under Section 201.986 and the assignment of the

identified transportation projects in the classifications.

project and performance reporting system:

(1) a list of the most significant transportation

problems in each department district as described by the statewide

transportation plan developed under Section 201.601, including the

component required by Section 201.601(c);

(2) reports prepared by the department or an

institution of higher education that evaluate the effectiveness of

the department's expenditures on transportation projects to

achieve the transportation goals;

(3) information about the condition of the pavement

for each segment of the state highway system, including:

(A) the international roughness index issued by

the United States Department of Transportation Federal Highway

Administration; and

(B) the percentage of pavement that the

department determines to be in good or better condition;

(4) the condition of bridges, including information

about:

(A) the number of on-system and off-system

bridges that are structurally deficient or functionally obsolete;

and

(B) the percentage of bridges that the department

determines to be in good or better condition;

(5) information about traffic congestion and traffic

delays, including:

(A) the locations of the worst metropolitan

traffic delays;

(B) the variable travel time for major freeways

and highways in the metropolitan areas of this state; and

vehicle travel and motor carriers; and

(6) information about the number of traffic accidents,

injuries, and fatalities, including the geographic locations in

each department district for the highest number of traffic

accidents, injuries, or fatalities.

(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 about a specific

county, a highway under the jurisdiction of the department, or a

type of road.

(e) Each department district shall enter information into

the transportation project and performance reporting system,

including information about:

(1) each district transportation project; and

(2) the priority classification to which the project

has been assigned according to Section 201.986.

(f) The transportation project and performance reporting

system must allow a person to compare information produced by that

system to information produced by the project information reporting

system under Section 201.807.

(g) The department shall make available in a central

location on the department's Internet website information

regarding each fund source for the department's funds and all

expenditures made by the department, reported by:

(1) department district;

(2) program funding category; and

(3) type of revenue, including revenue from a

comprehensive development agreement or a toll project.

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

project under Section 201.985;

(3) a summary of the number of statewide project

implementation benchmarks that have been completed; and

(4) information about the accuracy of previous

department financial forecasts.

(b) The department shall disaggregate the project

information in the report by department district.

reports for department districts in a legislative district to each

member of the legislature, and at the request of a member, a senior

management employee shall meet with the member to explain the

report.

(d) The department shall provide a copy of each district

report to the political subdivisions located in the department

district that is the subject of the report, including:

(1) a municipality;

(2) a county; and

(3) a local transportation entity as defined by

Section 201.981.

(e) The department shall provide a copy of the complete

report to the lieutenant governor, the speaker of the house of

representatives, and the chair of the standing committee of each

house of the legislature with primary jurisdiction over

transportation issues.

Sec. 201.810. SEPARATE SUBACCOUNT REPORTING. (a) The

department shall develop an account information reporting system

that makes available on the department's Internet website for

viewing and downloading by interested persons the tracking of each

separate subaccount in the state highway fund required by law,

including Chapter 228. The account information must include:

(1) the source and amount of the deposited funds and

the date of deposit;

(2) identification by location and highway

designation of the projects or systems to which the funds are

allocated; and

(3) the amount, general type or purpose, and date of

expenditures from the account.

(b) The department shall update the account information

reporting system at least quarterly.

Sec. 201.811. DEPARTMENT INFORMATION CONSOLIDATION. (a)

To the extent practicable and to avoid duplication of reporting

requirements, the department may combine the reports required under

this subchapter with reports required under other provisions of

this code.

(b) The department shall develop a central location on the

department's Internet website that provides easily accessible and

searchable information to the public contained in the reports

required under this subchapter and other provisions of this code.

(b) Not later than September 1, 2009, the Texas Department

of Transportation shall establish the central location on the

department's Internet website required by Sections 201.807 and

201.808, Transportation Code, as added by this section.

SECTION 2.07. Chapter 201, Transportation Code, is amended

by adding Subchapter P to read as follows:

SUBCHAPTER P. PROJECT DEVELOPMENT PROGRAM

Sec. 201.981. DEFINITIONS. In this subchapter:

(1) "Local transportation entity" means an entity that

participates in the transportation planning process. The term

includes:

(A) a metropolitan planning organization;

(B) a rural planning organization;

Chapter 366;

(D) a regional transportation authority

operating under Chapter 452;

(E) a rural transit district as defined by

Section 458.001;

(F) a coordinated county transportation

authority operating under Chapter 460; and

(G) a regional mobility authority operating

under Chapter 370.

(2) "Planning organization" means:

(A) a metropolitan planning organization;

(B) a rural planning organization; or

metropolitan planning organization or a rural planning

organization, the department district.

(3) "Transportation project" means the planning,

right-of-way acquisition, expansion, improvement, addition, or

contract maintenance, other than the routine or contracted routine

maintenance, of:

(A) a bridge;

(B) a highway;

(D) a railroad;

(E) an enhancement of a roadway that increases

the safety of the traveling public;

(F) an air quality improvement initiative; or

(G) a transportation enhancement activity under

23 U.S.C. Section 133.

Sec. 201.982. PROJECT DEVELOPMENT PROGRAM. (a) The

department shall develop a project development program that covers

a period of 10 years to guide the development of and authorize

construction of transportation projects. The program must:

(1) estimate funding levels for each year; and

(2) list all projects and programs that the department

intends to develop or begin construction of during the program

period.

(b) The commission by rule shall:

(1) specify the criteria for selecting projects to be

included in the program as provided in Section 201.987;

(2) define program funding categories, including

categories for safety, bridge, maintenance, and mobility; and

(3) define each phase of a major transportation

project, including the planning, design, and construction phases.

development program and summary documents highlighting project

benchmarks, priorities, and forecasts in appropriate media and on

the department's Internet website.

(d) In developing the rules required by this section, the

commission shall cooperate with local transportation entities.

Sec. 201.9825. ANNUAL UPDATE TO PROJECT DEVELOPMENT

PROGRAM. (a) The department shall annually update the project

development program.

(b) The annual update must include:

(1) the annual funding forecast required by Section

201.984;

(2) the list of major transportation projects required

by Section 201.985(b); and

(3) the projects included in each program priority

classification established by Section 201.986.

transportation entities to develop the annual update to the project

development program.

Sec. 201.983. PLANNING ORGANIZATION 10-YEAR PLAN. (a)

Each planning organization shall develop a 10-year transportation

plan that is consistent with the criteria and definitions adopted

by the commission under Section 201.982.

(b) The first four years of the plan shall be developed so as

to comply with the transportation improvement plan requirements of

federal law.

plan in accordance with federal law, the department shall:

(1) compile the metropolitan planning organizations'

project selections; and

(2) collaborate with the rural planning

organizations.

(d) The department shall develop the statewide

transportation improvement plan in accordance with federal law.

Sec. 201.9835. PROJECT PRIORITIZATION BY PLANNING

ORGANIZATIONS. (a) Each metropolitan planning organization shall,

for the area in its boundaries, develop a prioritized list of

transportation projects that is consistent with the criteria

established by the commission under Section 201.987. Projects that

are not considered by the department and the planning organization

to be of an appropriate scale for individual identification in a

given program year may be grouped by function, geographic area, or

work type.

(b) The department shall, with input from a rural planning

organization, develop a prioritized list of transportation

projects for the area in that rural planning organization's

boundaries and submit the projects to the commission for final

approval.

organization, the applicable department district shall:

(1) develop a prioritized list of transportation

projects with input from municipal and county officials and

officials of local transportation entities; and

(2) submit the transportation projects to the

commission for final approval.

Sec. 201.984. 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

project development 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.

department shall prepare and publish a cash flow forecast for the

10-year period that begins on September 1 of that odd-numbered

year.

(d) The department shall update the forecast more

frequently as needed if significant changes in the department's

funding occur.

Sec. 201.985. DESIGNATION AND INFORMATION ON CONSTRUCTION

OF MAJOR TRANSPORTATION PROJECTS. (a) The commission by rule

shall:

(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 project development program.

(b) The department shall annually update the list of

projects that are designated as major transportation projects.

commission shall collaborate with local transportation entities.

Sec. 201.986. PROGRAM PRIORITY CLASSIFICATIONS. (a) The

commission by rule shall establish classifications in the project

development program to designate the priority of each project

included in the program and shall assign each project a

classification. The classifications must include high, medium, and

low priority levels.

(b) The department shall collaborate with local

transportation entities when assigning each project included in the

project development program to a classification established under

Subsection (a).

priority shall be given to projects with the highest classification

within each applicable program funding category described by

Section 201.982(b)(2).

Sec. 201.987. PROJECT SELECTION. (a) The commission by

rule shall establish criteria for selection by the department and

each planning organization of projects to be included in the

statewide transportation plan. The criteria must be based on the

commission's transportation goals for the state and measurable

targets for each goal.

(b) The department shall collaborate with planning

organizations in the development of the criteria for selection of

projects.

selection of projects to be included in the statewide

transportation plan.

(d) The commission shall consider the prioritized list of

transportation projects developed by metropolitan planning

organizations operating in areas that are a transportation

management area, as defined by 23 U.S.C. Section 134(k), for

projects funded as congestion mitigation and air quality

improvement projects, and metropolitan mobility or rehabilitation

projects, unless the commission determines that a particular

project's inclusion on or omission from the project list conflicts

with or is inconsistent with federal law or a rule adopted under

Subsection (a).

Sec. 201.988. FUNDING ALLOCATION. (a) The commission by

rule shall establish formulas for allocating funds in each category

described by Section 201.982(b)(2).

(b) The commission shall update the formulas established

under this section every five years or more frequently as

necessary.

Sec. 201.9882. LIMITATION ON COMMISSION ALLOCATION OF

FUNDS. (a) The commission or the department may not require that a

toll project be included in a regional mobility plan as a condition

for the allocation of funds for the construction of projects in the

region.

(b) The commission or the department may not:

(1) revise the formula as provided in the department's

project development program, or its successor document, in a manner

that results in a decrease of a department district's allocation

because of:

(A) the failure of a region to include toll

projects in a regional mobility plan; or

(B) participation by a political subdivision in

the funding of a transportation project in the region, including

the use of money collected in a transportation reinvestment zone

under Sections 222.106 and 222.107; or

(2) take any other action that would reduce funding

allocated to a department district because of the failure of a

region to include toll projects in a regional mobility plan.

Sec. 201.9884. FUND DISTRIBUTION. (a) The department

shall allocate funds to the department districts based on the

formulas adopted under Section 201.988.

(b) In distributing funds to department districts, the

department may not exceed the cash flow forecast prepared and

published under Section 201.984(c).

Sec. 201.989. DEPARTMENT FOUR-YEAR BUSINESS WORK PLAN. (a)

Each department district shall develop a consistently formatted

work plan for the following four years that is based on the project

development program and contains all projects and project

categories that the district plans to implement during that period.

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

category:

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

development;

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

(3) a letting plan; and

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

project category.

(1) monitor the performance of the district; and

(2) evaluate the performance of district employees.

(d) The department shall consolidate the districts' work

plans into a statewide work plan and publish it in appropriate media

and on the department's Internet website.

Sec. 201.9892. PERFORMANCE MEASURES FOR WORK PLAN. (a) The

department shall develop a set of performance measures for the plan

under Section 201.989 intended to measure:

(1) the execution of the work program;

(2) the efficiency and cost-effectiveness of its

business practices;

(3) the preservation of the system investment;

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

(5) safety initiatives; and

(6) use of minority, disadvantaged, and small

businesses.

(b) At a minimum, the performance measures adopted under

Subsection (a) must include:

(1) the percentage of projects for which environmental

clearance is obtained on or before the planned implementation

timelines;

(2) the percentage of projects for which right-of-way

acquisition is completed on or before the planned implementation

timelines;

(3) the total amount spent for right-of-way as a

percentage of the original estimated amount;

(4) the percentage of highway improvement contracts

executed on or before the planned implementation timelines for

letting;

(5) for all highway improvement contracts completed

during the state fiscal year, the percentage completed within 20

percent of the original contract time;

(6) for all highway improvement contracts completed

during the state fiscal year, the percentage completed within 10

percent of the original contract price;

(7) for all highway improvement contracts completed

during the state fiscal year, the percentage of the total contract

adjustments as a percentage of the total original contract price;

(8) of the federal funds subject to forfeiture at the

end of the state fiscal year, the percentage that was committed by

the department;

(9) the amounts of cash receipts and disbursements in

contrast with the forecasted amounts;

(10) the amount obligated to be spent in connection

with contracts or participation in contracts with minority,

disadvantaged, and small business enterprises as a percentage of

the amount spent on all contracts;

(11) the peak hour travel congestion in the eight

largest metropolitan areas in contrast with previous state fiscal

years; and

(12) the number of vehicle miles traveled in contrast

with previous state fiscal years.

Legislative Oversight Committee in developing the performance

measures under Subsection (a). This subsection expires August 31,

2013.

Sec. 201.9895. PERFORMANCE REVIEW. Not later than December

1 of each odd-numbered year, the commission shall review the

performance of the department's activities described in Section

201.989 and make the review available to the public. The review

must include a report on the level of achievement of each

performance measure listed in Section 201.9892(a), statewide and by

department district, and a status report on each major

transportation project under development.

SECTION 2.08. Subchapter A, Chapter 222, Transportation

Code, is amended by adding Section 222.004 to read as follows:

Sec. 222.004. AUTHORIZATION TO PROVIDE ASSISTANCE TO

EXPEDITE ENVIRONMENTAL REVIEW. (a) The department, a county, a

regional tollway authority operating under Chapter 366, or a

regional mobility authority operating under Chapter 370 may enter

into an agreement to provide funds to a state or federal agency to

expedite the agency's performance of its duties related to the

environmental review process for transportation projects:

(1) of the department;

(2) listed in a metropolitan planning

organization's long-range transportation plan under 23 U.S.C.

Section 134; or

(3) of a county, regional tollway authority

operating under Chapter 366, or regional mobility authority

operating under Chapter 370.

(b) Except as provided by Subsection (c), an agreement

entered into under this section:

(1) may specify transportation projects the

applicable entity considers to be priorities for review; and

(2) must require the agency receiving money to

complete the environmental review in less time than is customary

for the completion of an environmental review by that agency.

transportation project that the department determines has regional

importance.

(d) An agreement entered into under this section does not

diminish or modify the rights of the public regarding review and

comment on transportation projects.

(e) An entity entering into an agreement under this section

shall make the agreement available on the entity's Internet

website.

SECTION 2.09. (a) The Texas Transportation Commission

shall adopt the rules required by this article as soon as

practicable but not later than March 1, 2010.

(b) Each planning organization, as defined by Section

201.981, Transportation Code, as added by this article, shall

develop its first 10-year transportation plan in accordance with

Section 201.983, Transportation Code, as added by this article, not

later than March 1, 2011.

the programs and plans required under Subchapter P, Chapter 201,

Transportation Code, as added by this article, as soon as

practicable but not later than December 1, 2010.

SECTION 2.10. Subchapter D, Chapter 472, Transportation

Code, is amended by adding Sections 472.0331 and 472.0332 to read as

follows:

Sec. 472.0331. ORGANIZATION. (a) The governor shall

designate, in accordance with 23 U.S.C. Section 134, a metropolitan

planning organization for each urbanized area of this state having

a population of more than 50,000.

(b) The policy board of a metropolitan planning

organization is the governing body of that organization. Not more

than 50 percent of the number of the voting members of the policy

board must be elected officials whose jurisdictions are wholly or

partially in the boundaries of the metropolitan planning

organization.

entity. The policy board is subject to Chapter 551, Government

Code.

Sec. 472.0332. DUTIES. In addition to the requirements of

federal law, a metropolitan planning organization shall perform the

duties required by state law and those delegated by the commission

under Subchapter H, Chapter 201.

SECTION 2.11. Subchapter D, Chapter 472, Transportation

Code, is amended by adding Section 472.035 to read as follows:

Sec. 472.035. DUTIES. The duties of a metropolitan

planning organization are to provide regional transportation

forecasting and planning, set regional priorities, and make project

selection decisions as provided by federal law and the commission.

The organization shall not be involved in project development

activities for individual projects, including environmental

clearance, procurement, or management of the project design and

construction process.

SECTION 2.12. (a) Chapter 472, Transportation Code, is

amended by adding Subchapter E to read as follows:

SUBCHAPTER E. RURAL PLANNING ORGANIZATIONS

Sec. 472.151. DEFINITION. "Rural planning organization"

means a planning organization created in accordance with Section

472.152 to carry out the rural transportation planning functions

under Section 472.154 in areas that lie outside the boundaries of a

metropolitan planning organization.

Sec. 472.152. CREATION OF RURAL PLANNING ORGANIZATION;

BOUNDARIES. (a) A rural planning organization may be created by

resolutions by the commissioners courts of:

(1) at least two counties, other than counties whose

entire area is served by a metropolitan planning organization, that

make up at least two-thirds of the counties in a regional planning

commission under Chapter 391, Local Government Code; or

(2) at least two-thirds of the counties, other than

counties whose entire area is served by a metropolitan planning

organization, that make up a department district.

(b) As soon as practicable after its creation, a rural

planning organization shall send notice of its creation to the

commission.

by counties described by Subsection (a)(1) are the boundaries of

the area served by the regional planning commission. The

boundaries of a rural planning organization created by counties

described by Subsection (a)(2) are the boundaries of the department

district.

Sec. 472.153. COMPOSITION OF BOARD OF DIRECTORS OF RURAL

PLANNING ORGANIZATION. (a) A rural planning organization is

governed by a board of directors whose membership must include:

(1) not more than 50 percent local elected officials

representing political subdivisions located in the boundaries of

the rural planning organization; and

(2) the district engineer of the department district

or districts in the boundaries of the rural planning organization.

(b) The orders of the commissioners courts creating the

organization under Section 472.152 must provide for the appointment

of the initial board of directors.

the area served by the rural planning organization in a manner

determined by the board of directors.

Sec. 472.154. RURAL TRANSPORTATION PLANNING. (a) A rural

planning organization shall:

(1) establish regional transportation priorities, and

prioritize and recommend to the department projects of regional

significance in the boundaries of the area served by the

organization; and

(2) provide input to the department on projects

involving the connectivity of the state highway system.

(b) A rural planning organization may provide planning

assistance as may be necessary to support regional transportation

priorities.

Sec. 472.155. DEPARTMENT PARTICIPATION. The department:

(1) shall provide funds and personnel to assist rural

planning organizations with rural transportation planning, which

may include:

(A) eligible federal planning funds not

designated for metropolitan planning organizations;

(B) money appropriated to the department from the

state highway funds; and

operations of a rural planning organization;

(2) shall work with rural planning organizations to

identify available sources of funding for rural transportation

planning, which may include federal funds or transportation

development credits; and

(3) may contract with rural planning organizations to

provide services necessary to support rural transportation

planning.

(b) A rural planning organization created by board

resolution of a council of governments before the effective date of

this Act that otherwise conforms to the requirements of this

section is recognized as having been validly created under this

Act.

ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS

SECTION 3.01. Subchapter H, Chapter 201, Transportation

Code, is amended by adding Section 201.605 to read as follows:

Sec. 201.605. PUBLIC PARTICIPATION. (a) The commission by

rule shall provide for the department to hold, or provide the

opportunity for, one or more public hearings for any transportation

project owned or operated by the department that requires the

acquisition of significant amounts of rights-of-way, substantially

changes the layout or functions of connecting roadways or of a

facility being improved, has a substantial adverse impact on

abutting property, or otherwise has a significant social, economic,

environmental, or other effect, or for which the department

determines that a public hearing is in the public interest. The

rules must provide for the public's submission of oral or written

comments and the department's preparation of written responses to

the comments. The department shall prepare a transcript of any oral

comments submitted.

(b) The commission by rule shall provide for the department

to hold, or provide the opportunity for, one or more public meetings

for an informal exchange of information between the department and

the public for a transportation project owned or operated by the

department. The rules must provide for the public meetings to be

held at the earliest stages of the project as possible.

this section must:

(1) be by publication in the locality of the

transportation project not less than seven or more than 20 days

before the date of the hearing or meeting;

(2) be distributed to the public not less than seven

days before the date of the hearing or meeting using methods

suitable for the distribution given the nature of the

transportation project and the populations that may be affected by

it;

(3) be simple, readable, and informative;

(4) include:

(A) the name and description of the project;

(B) a map or graphic illustration of the project;

(D) the purpose of the hearing or meeting;

(E) the location, date, and time of the hearing

or meeting;

(F) a contact telephone number for information

about the hearing or meeting; and

(G) the Internet website address where project

information and the materials used at the hearing or meeting may be

viewed; and

(5) if the population that will be affected by the

project is significantly non-English-speaking, also be published

in the dominant language of a majority of that population.

(d) Any interested person may attend a public hearing or a

public meeting held under this section.

(e) The department shall publish on its Internet website any

materials used at a public hearing or public meeting not later than

the third day after the date of the hearing or meeting.

(f) If the department holds more than one public hearing or

one public meeting for a transportation project, the department

shall vary the scheduling of the hearings or meetings to

accommodate persons living in different geographic areas affected

by the project and persons with varied work schedules.

(g) The department's presentation of information at a

public hearing or meeting must include:

(1) the design and schematic layout of the project;

(2) the problem or need to be addressed by the project;

(3) a reference to the part of the department's

mission, strategic plan, or legislative direction that is furthered

by the project, and the project's relation to the local planning

process;

(4) an explanation using diagrams, flowcharts, or

other devices to illustrate procedural steps of the project, and an

estimated timeline leading to the completion of the project; and

(5) a discussion of significant impacts of the

project.

(h) The department shall make available an electronic mail

address or Internet website that may be used to submit public

comments concerning a project.

(i) The commission by rule shall provide owners of adjoining

property and affected local governments and public officials with

notice and an opportunity for comment on a state highway project

that involves:

(1) the addition of one or more vehicular lanes to an

existing highway; or

(2) the construction of a highway at a new location.

(j) The commission by rule shall provide procedures for

informing adjoining property owners and affected local governments

and public officials of impending construction.

SECTION 3.02. (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;~~

[~~(3)~~ ~~in a bill for service provided by an individual or~~

~~entity regulated by the department.~~]

[~~(1)~~ ~~keep an information file about each written~~

~~complaint filed with the department that the department has the~~

~~authority to resolve; and~~

[~~(2)~~ ~~provide the person who filed the complaint, and~~

~~each person or entity that is the subject of the complaint,~~

~~information about the department's policies and procedures~~

~~relating to complaint investigation and resolution.~~

[~~(d)~~] The department[~~, at least quarterly and until final~~

~~disposition of a written complaint that is filed with the~~

~~department and that the department has the authority to resolve,~~]

shall periodically notify the parties to the complaint of its

status until final disposition unless the notice would jeopardize

an undercover investigation.

(d) The commission shall adopt rules applicable to each

division and district to establish a process to act on complaints

filed with the department [~~(e)~~ ~~With regard to each complaint filed~~

~~with the department, the department shall keep the following~~

~~information:~~

[~~(1) the date the complaint is filed;~~

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

[~~(3) the subject matter of the complaint;~~

[~~(4)~~ ~~a record of each person contacted in relation to~~

~~the complaint;~~

[~~(5)~~ ~~a summary of the results of the review or~~

~~investigation of the complaint; and~~

[~~(6)~~ ~~if the department takes no action on the~~

~~complaint, an explanation of the reasons that no action was taken~~].

(e) The department shall develop a standard form for

submitting a complaint and make the form available on its Internet

website. The department shall establish a method to submit

complaints electronically.

(f) The department shall develop a method for analyzing the

sources and types of complaints and violations and establish

categories for the complaints and violations. The department shall

use the analysis to focus its information and education efforts on

specific problem areas identified through the analysis.

(g) The department shall:

(1) compile:

(A) detailed statistics and analyze trends on

complaint information, including:

(i) the nature of the complaints;

(ii) their disposition; and

(iii) the length of time to resolve

complaints; and

(B) complaint information on a district and a

divisional basis; and

(2) report the information on a monthly basis to the

division directors, office directors, and district engineers and on

a quarterly basis to the commission.

(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 3.03. Subchapter J, Chapter 201, Transportation

Code, is amended by adding Section 201.812 to read as follows:

Sec. 201.812. PUBLIC INVOLVEMENT POLICY. (a) The

department shall develop and implement a policy for public

involvement that guides and encourages public involvement with the

department. The policy must:

(1) provide for the use of public involvement

techniques that target different groups and individuals;

(2) encourage continuous contact between the

department and persons outside the department throughout the

transportation decision-making process;

(3) require the department to make efforts toward:

(A) clearly tying public involvement to

decisions made by the department; and

(B) providing clear information to the public

about specific outcomes of public input; and

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

including input:

(A) on statewide transportation policy-making;

(B) in connection with the environmental process

relating to specific projects; and

(b) The department shall document the ratio of positive

public input to negative public input regarding all environmental

impact statements as expressed by the public through the

department's public involvement process. The department shall:

(1) present this information to the commission in an

open meeting; and

(2) report this information on the department's

Internet website in a timely manner.

SECTION 3.04. Subchapter B, Chapter 203, Transportation

Code, is repealed.

ARTICLE 4. CONTRACTING FUNCTIONS

SECTION 4.01. Section 223.002, Transportation Code, is

amended to read as follows:

Sec. 223.002. NOTICE OF BIDS [~~BY PUBLICATION~~]. [~~(a)~~] The

department shall give [~~publish~~] notice to interested persons

regarding [of] the time and place at which bids on a contract will

be opened and the contract awarded. The department by rule shall

determine the most effective method for providing the notice

required by this section.

[~~(b)~~ ~~The notice must be published in a newspaper published~~

~~in the county in which the improvement is to be made once a week for~~

~~at least two weeks before the time set for awarding the contract and~~

~~in two other newspapers that the department may designate.~~

[~~(c)~~ ~~Instead of the notice required by Subsection (b), if~~

~~the department estimates that the contract involves an amount less~~

~~than $300,000, notice may be published in two successive issues of a~~

~~newspaper published in the county in which the improvement is to be~~

~~made.~~

[~~(d)~~ ~~If a newspaper is not published in the county in which~~

~~the improvement is to be made, notice shall be published in a~~

~~newspaper published in the county:~~

[~~(1)~~ ~~nearest the county seat of the county in which the~~

~~improvement is to be made; and~~

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

SECTION 4.02. Section 223.205, Transportation Code, is

amended by amending Subsections (a), (b), (d), (f), and (g) and

adding Subsections (h) and (i) to read as follows:

(a) The [~~Notwithstanding Section 223.006 and the~~

~~requirements of Subchapter B, Chapter 2253, Government Code, the~~]

department shall require a private entity entering into a

comprehensive development agreement under this subchapter to

provide a performance and payment bond or an alternative form of

security, or a combination of forms of security, in an amount as

determined by the department that is sufficient to:

(1) ensure the proper performance of the construction

work to be performed under the agreement; and

(2) protect:

(A) the department; and

(B) payment bond beneficiaries who have a direct

contractual relationship with the private entity or a subcontractor

of the private entity to supply labor or material for the

construction work.

(b) A performance and payment bond or alternative form of

security shall be in an amount equal to the cost of constructing [or

~~maintaining~~] the project.

(d) A [~~payment or performance~~] bond or alternative form of

security is not required for the portion of an agreement that is for

[~~includes~~] only design or planning services, the performance of

preliminary studies, [or] the acquisition of real property,

maintenance, or operations.

(f) The [~~In addition to or instead of a performance and~~

~~payment bond, the~~] department may require one or more of the

following alternative forms of security:

(1) a cashier's check drawn on a financial entity

specified by the department;

(2) a United States bond or note;

(3) an irrevocable bank letter of credit; [or]

(4) debt and equity contributed by the private entity

that is not recoverable in the event of termination of the agreement

because of the private entity's breach; or

(5) any other form of security determined suitable by

the department.

(g) The commission [~~department~~] by rule shall prescribe

requirements for an alternative form of security provided under

this section.

(h) Section 223.006 of this code and Chapter 2253,

Government Code, do not apply to a bond or alternative form of

security required under this section.

(i) The commission shall prepare and file annually with the

governor, the lieutenant governor, and the Legislative Budget Board

a report providing information on the operations of highway

projects for which a comprehensive development has been entered

into with a private entity.

SECTION 4.03. Sections 223.201(a) and (g), Transportation

Code, are amended to read as follows:

(a) The [~~Subject to Section 223.202, the~~] department may

enter into a comprehensive development agreement with a private

entity to design, develop, finance, construct, maintain, repair,

operate, extend, or expand a:

(1) state highway [~~toll project~~]; or

(2) facility, as defined by Section 227.001, or a

combination of facilities on the Trans-Texas Corridor[;

[~~(3)~~ ~~state highway improvement project that includes~~

~~both tolled and nontolled lanes and may include nontolled~~

~~appurtenant facilities;~~

[~~(4)~~ ~~state highway improvement project in which the~~

~~private entity has an interest in the project; or~~

[~~(5)~~ ~~state highway improvement project financed~~

~~wholly or partly with the proceeds of private activity bonds, as~~

~~defined by Section 141(a), Internal Revenue Code of 1986~~].

(g) The department may combine in a comprehensive

development agreement under this subchapter a state highway [~~toll~~

~~project~~] and a rail facility as defined by Section 91.001.

SECTION 4.04. Section 223.203(e-2), Transportation Code,

is amended to read as follows:

(e-2) In this section, "design-build contract" means a

comprehensive development agreement that includes the design and

construction of a [~~turnpike~~] project, does not include the

financing of a [~~turnpike~~] project, and may include the acquisition,

maintenance, or operation of a [~~turnpike~~] project.

SECTION 4.05. Section 223.203(m), Transportation Code, is

amended to read as follows:

(m) The department may pay an unsuccessful private entity

that submits a responsive proposal in response to a request for

detailed proposals under Subsection (f) a stipulated amount in

exchange for the work product contained in that proposal. A

stipulated amount must be stated in the request for proposals and

may not exceed the value of any work product contained in the

proposal that can, as determined by the department, be used by the

department in the performance of its functions. The use by the

department of any design element contained in an unsuccessful

proposal is subject to the private entity's acceptance of the

stipulated amount, is at the sole risk and discretion of the

department, and does not confer liability on the recipient of the

stipulated amount under this section. After acceptance and payment

of the stipulated amount:

(1) the department owns with the unsuccessful proposer

jointly the rights to, and may make use of any work product

contained in, the proposal, including the technologies,

techniques, methods, processes, ideas, and information contained

in the project design; and

(2) the use by the unsuccessful proposer of any

portion of the work product contained in the proposal is at the sole

risk of the unsuccessful proposer and does not confer liability on

the department.

SECTION 4.06. Section 223.208(e), Transportation Code, is

amended to read as follows:

(e) Notwithstanding anything in Section 201.112 or other

law to the contrary, and subject to compliance with the dispute

resolution procedures set out in the comprehensive development

agreement, an obligation of the commission or the department under

a comprehensive development agreement entered into under this

subchapter or Section 227.023(c) to make or secure payments to a

person because of the termination of the agreement, including the

purchase of the interest of a private participant or other investor

in a project, may be enforced by mandamus against the commission,

the department, and the comptroller in a district court of Travis

County, and the sovereign immunity of the state is waived for that

purpose. The district courts of Travis County shall have exclusive

jurisdiction and venue over and to determine and adjudicate all

issues necessary to adjudicate any action brought under this

subsection. The remedy provided by this subsection is in addition

to any legal and equitable remedies that may be available to a party

to a comprehensive development agreement. This subsection does not

apply to a design-build contract, as defined by Section

223.203(e-2), for a nontolled facility.

SECTION 4.07. Section 223.206(b), Transportation Code, is

amended to read as follows:

(b) Notwithstanding Subsection (a), the department may

enter into an agreement that provides for the lease of

rights-of-way, the granting of easements, the issuance of

franchises, licenses, or permits, or any lawful uses to enable a

private entity to construct, operate, and maintain a project,

including supplemental facilities. At the termination of the

agreement, the highway or other facilities are to be in a state of

proper maintenance as determined by the department and [~~shall be~~]

returned to the department in satisfactory condition at no further

cost other than any compensation the department agrees to pay on an

early termination of the agreement. In lieu of the private entity's

performing necessary maintenance, repair, or renewal work before

returning the highway or other facilities to the department, the

agreement may require payment to the department in the amount the

department determines to be appropriate to fund maintenance,

repair, or renewal work that is scheduled to occur subsequent to

termination of the agreement.

SECTION 4.08. Subchapter C, Chapter 371, Transportation

Code, as added by Chapter 264 (S.B. 792), Acts of the 80th

Legislature, Regular Session, 2007, is amended by adding Section

371.105 to read as follows:

Sec. 371.105. PROHIBITION AGAINST CONCESSION PAYMENTS;

REVENUE SHARING. (a) In this section, "concession payment" means

an up-front payment made by a private participant in return for

which the private participant is granted a right to operate and

receive revenue from a toll project.

(b) A toll project entity is prohibited from accepting a

concession payment as part of a comprehensive development

agreement.

agreement with a private participant as part of a comprehensive

development agreement.

(d) This section does not apply to:

(1) the State Highway 161 project from State Highway

183 to Interstate Highway 20 in Dallas County;

(2) the United States Highway 281 project in Bexar

County from Loop 1604 to the Comal County line;

(3) the Loop 49 project from Interstate Highway 20 to

State Highway 110 in Smith County;

(4) the DFW Connector project in Tarrant and Dallas

Counties (State Highway 114 from State Highway 114L Business to

east of International Parkway and State Highway 121 from north of

Farm-to-Market Road 2499 to south of State Highway 360);

(5) the North Tarrant Express project in Tarrant and

Dallas Counties (Interstate Highway 820 and State Highway 121/State

Highway 183 from Interstate Highway 35W to State Highway 161,

Interstate Highway 820 east from State Highway 121/State Highway

183 to Randol Mill Road, and Interstate Highway 35W from Interstate

Highway 30 to State Highway 170);

(6) the United States Highway 290 project from east of

United States Highway 183 to east of Farm-to-Market Road 973 in

Travis County;

(7) the State Highway 99 (Grand Parkway) project;

(8) the Interstate Highway 635 managed lanes project

in Dallas County (Interstate Highway 635 from east of Luna Road to

Greenville Avenue and Interstate Highway 35E from south of the Loop

12/Interstate Highway 35E split to south of Valwood Parkway);

(9) Phase 4 extension of the Dallas North Tollway in

Collin and Denton Counties from United States Highway 380 to the

Grayson County line to be developed by North Texas Tollway

Authority;

(10) the Southwest Parkway (State Highway 121) in

Tarrant County from Interstate 30 to Dirks Road/Altamesa Boulevard

and the Chisholm Trail project from Dirks Road/Altamesa Boulevard

to U.S. Highway 67 in the City of Cleburne; or

(11) a comprehensive development agreement in

connection with a project associated with any portion of the Loop 9

project that is located in a nonattainment air quality area as

designated by the United States Environmental Protection Agency

that includes two adjacent counties that each have a population of

one million or more.

SECTION 4.09. Subsection (a), Section 371.151,

Transportation Code, as added by Chapter 264 (S.B. 792), Acts of the

80th Legislature, Regular Session, 2007, is amended to read as

follows:

(a) Before a toll project entity enters into a contract for

the construction of a toll project, the entity shall publish in the

manner provided by Section 371.152 information regarding:

(1) project financing, including:

(A) the total amount of debt that has been and

will be assumed to acquire, design, construct, operate, and

maintain the toll project;

(B) a description of how the debt will be repaid,

including a projected timeline for repaying the debt; and

paid on the debt;

(2) whether the toll project will continue to be

tolled after the debt has been repaid;

(3) a description of the method that will be used to

set toll rates;

(4) a description of any terms in the contract

relating to competing facilities, including any penalties

associated with the construction of a competing facility;

(5) a description of any terms in the contract

relating to a termination for convenience provision, including any

information regarding how the value of the project will be

calculated for the purposes of making termination payments;

(6) the initial toll rates, the methodology for

increasing toll rates, and the projected toll rates at the end of

the term of the contract; and

(7) the terms of any revenue sharing agreement [~~the~~

~~projected total amount of concession payments~~].

SECTION 4.10. (a) The changes in law made by Section

371.151, Transportation Code, as amended by this article, and

Section 371.105, Transportation Code, as added by this article,

apply only to a comprehensive development agreement entered into on

or after the effective date of this Act.

(b) A comprehensive development agreement entered into

before the effective date of this Act is governed by the law in

effect on the day the agreement was finalized, and the former law is

continued in effect for that purpose.

ARTICLE 5. REGULATION OF MOTOR VEHICLE DEALERS, SALVAGE VEHICLE

DEALERS, AND HOUSEHOLD GOODS CARRIERS

SECTION 5.01. (a) Section 643.153, Transportation Code, is

amended by amending Subsection (b) and adding Subsections (c), (h),

and (i) to read as follows:

(b) The department may adopt rules necessary to ensure that

a customer of a motor carrier transporting household goods is

protected from deceptive or unfair practices and unreasonably

hazardous activities. The rules must:

(1) establish a formal process for resolving a dispute

over a fee or damage;

(2) require a motor carrier to indicate clearly to a

customer whether an estimate is binding or nonbinding and disclose

the maximum price a customer could be required to pay;

(3) create a centralized process for making complaints

about a motor carrier that also allows a customer to inquire about a

carrier's complaint record; [~~and~~]

(4) require a motor carrier transporting household

goods to list a place of business with a street address in this

state and the carrier's registration number issued under this

article in any print advertising published in this state; and

(5) require a motor carrier transporting household

goods to submit to the department, at the time of the original motor

carrier registration and at the renewal of the registration,

documentation on whether the motor carrier:

(A) regularly requests and obtains criminal

history record information on its employees under Chapter 145,

Civil Practice and Remedies Code; and

(B) uses the criminal history record information

to exclude from employment persons who have committed a serious

criminal offense.

department's Internet website the information received under

Subsection (b)(5) to allow members of the public to make an informed

choice when selecting a motor carrier to transport household goods.

(h) Subject to Subsection (i), the department may order a

motor carrier that transports household goods to pay a refund to a

customer as provided in an agreement resulting from an informal

settlement instead of or in addition to imposing an administrative

penalty under this chapter.

(i) The amount of a refund ordered as provided in an

agreement resulting from an informal settlement may not exceed the

amount the customer paid to the motor carrier for a service or the

amount the customer paid for an item damaged by the motor carrier,

without requiring an estimation of the actual cost of the damage.

The department may not require payment of other damages or estimate

harm in a refund order.

(b) The change in law made by Sections 643.153(h) and (i),

Transportation Code, as added by this section, applies only to an

agreement to transport household goods entered into on or after the

effective date of this Act. An agreement to transport household

goods entered into before the effective date of this Act is governed

by the law in effect immediately before that date, and that law is

continued in effect for that purpose.

SECTION 5.02. (a) Section 643.251(b), Transportation Code,

is amended to read as follows:

(b) Except as provided by this section, the amount of an

administrative penalty may not exceed $5,000. If it is found that

the motor carrier knowingly committed the violation, the penalty

may not exceed $15,000. [~~If it is found that the motor carrier~~

~~knowingly committed multiple violations, the aggregate penalty for~~

~~the multiple violations may not exceed $30,000.~~] Each day a

violation continues or occurs is a separate violation for purposes

of imposing a penalty.

(b) The change in law made by this section to Section

643.251, Transportation Code, applies only to a violation committed

by a motor carrier on or after the effective date of this Act. For

purposes of this subsection, a violation was committed before the

effective date of this Act if any element of the violation was

committed before that date. A violation committed by a motor

carrier before the effective date of this Act is covered by the law

in effect on the date the violation was committed, and the former

law is continued in effect for that purpose.

SECTION 5.03. Subchapter F, Chapter 643, Transportation

Code, is amended by adding Sections 643.256 and 643.257 to read as

follows:

Sec. 643.256. SUMMARY SUSPENSION. (a) The department may

summarily suspend the registration of a motor carrier registered

under this chapter if the motor carrier's failure to comply with

this chapter or a rule adopted under this chapter is determined by

the department to constitute a continuing and imminent threat to

the public safety and welfare.

(b) To initiate a proceeding to take action under Subsection

(a), the department must serve notice on the motor carrier. The

notice must:

(1) state the grounds for summary suspension;

(2) be personally served on the motor carrier or sent

to the motor carrier by certified or registered mail, return

receipt requested, to the motor carrier's mailing address as it

appears in the department's records; and

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

on the suspension.

personally served or received by mail. The motor carrier is

entitled to appeal the suspension in the manner provided by Section

643.2525 for the appeal of an order of the board.

Sec. 643.257. EMERGENCY CEASE AND DESIST ORDER. (a) If it

appears to the board that a motor carrier who is not registered to

transport household goods for compensation under Section 643.051 is

violating this chapter, a rule adopted under this chapter, or

another state statute or rule relating to the transportation of

household goods and the board determines that the unauthorized

activity constitutes a clear, imminent, or continuing threat to the

public health and safety, the board may:

(1) issue an emergency cease and desist order

prohibiting the motor carrier from engaging in the activity; and

(2) report the activity to a local law enforcement

agency or the attorney general for prosecution.

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

(1) be delivered on issuance to the motor carrier

affected by the order by personal delivery or registered or

certified mail, return receipt requested, to the motor carrier's

last known address;

(2) state the acts or practices alleged to be an

unauthorized activity and require the motor carrier immediately to

cease and desist from the unauthorized activity; and

(3) contain a notice that a request for hearing may be

filed under this section.

desist order is directed may request a hearing before the 11th day

after the date it is served on the motor carrier. If the motor

carrier does not request a hearing in that time, the order is final

and nonappealable as to that motor carrier. A request for a

hearing must:

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

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

modify the order.

(d) On receiving a request for a hearing, the board shall

serve notice of the time and place of the hearing by personal

delivery or registered or certified mail, return receipt

requested. The hearing must be held not later than the 10th day

after the date the board receives the request for a hearing unless

the parties agree to a later hearing date. A hearing under this

subsection is subject to Chapter 2001, Government Code.

(e) After the hearing, the board shall affirm, modify, or

set aside wholly or partly the emergency cease and desist order. An

order affirming or modifying the emergency cease and desist order

is immediately final for purposes of enforcement and appeal.

(f) An order under this section continues in effect unless

the order is stayed by the board. The board may impose any

condition before granting a stay of the order.

(g) The board may release to the public a final cease and

desist order issued under this section or information regarding the

existence of the order if the board determines that the release

would enhance the effective enforcement of the order or will serve

the public interest.

(h) A violation of an order issued under this section

constitutes additional grounds for imposing an administrative

penalty under this chapter.

SECTION 5.04. Section 2301.654, Occupations Code, is

amended to read as follows:

Sec. 2301.654. PROBATION. If a suspension of a license is

probated, the board may:

(1) require the license holder to report regularly to

the board on matters that are the basis of the probation; [or]

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

(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. Section 2301.801, Occupations Code, is

amended by amending Subsections (a) and (c), and adding Subsections

(d), (e), (f), and (g) to read as follows:

Sec. 2301.801. ADMINISTRATIVE [~~CIVIL~~] PENALTY. (a) If,

after a proceeding under this chapter and board rules, the board

determines that a person is violating or has violated this chapter,

a rule adopted or order issued under this chapter, or Section

503.038(a), Transportation Code, the board may impose an

administrative [~~a civil~~] penalty. The amount of the penalty may not

exceed $10,000 for each violation. Each act of violation and each

day a violation continues is a separate violation.

administrative penalties based on the criteria in Subsection (b) to

ensure that the amount of a penalty imposed under this section is

appropriate to the violation [~~Notwithstanding any other law to the~~

~~contrary, a civil penalty recovered under this chapter shall be~~

~~deposited in the state treasury to the credit of the state highway~~

~~fund~~].

(d) The enforcement of an administrative penalty ordered

under this section may be stayed during the time the order is under

judicial review if the person pays the penalty to the clerk of the

court or files a supersedeas bond with the court in the amount of

the penalty. A person who cannot afford to pay the penalty or file

the bond may stay the enforcement by filing an affidavit in the

manner required by the Texas Rules of Civil Procedure for a party

who cannot afford to file security for costs, subject to the right

of the commission to contest the affidavit as provided by those

rules.

(e) The attorney general may sue to collect an

administrative penalty assessed under this section. The attorney

general may recover on behalf of the state the reasonable expenses

incurred in obtaining the penalty, including investigation and

court costs, reasonable attorney's fees, witness fees, and other

expenses.

(f) An administrative penalty collected under this section

shall be deposited to the credit of the general revenue fund.

(g) A proceeding to impose an administrative penalty under

this section is a contested case hearing under Chapter 2001,

Government Code.

SECTION 5.06. (a) Subchapter Q, Chapter 2301, Occupations

Code, is amended by adding Section 2301.808 to read as follows:

Sec. 2301.808. REFUND. (a) Subject to Subsection (b), the

board may order a motor vehicle dealer to pay a refund to a consumer

as provided in an agreement resulting from an informal settlement

instead of or in addition to imposing an administrative penalty

under this chapter.

(b) The amount of a refund ordered as provided in an

agreement resulting from an informal settlement may not exceed the

amount the consumer paid to the motor vehicle dealer. The board may

not require payment of other damages or estimate harm in a refund

order.

(b) Subchapter H, Chapter 2302, Occupations Code, is

amended by adding Section 2302.352 to read as follows:

Sec. 2302.352. ADMINISTRATIVE PENALTY. (a) The board may

impose an administrative penalty on a salvage vehicle dealer

licensed under this chapter who violates this chapter or a rule or

order adopted under this chapter.

(b) The amount of an administrative penalty imposed under

this section may not exceed $5,000. Each day a violation continues

or occurs is a separate violation for the purpose of imposing a

penalty. The amount of the penalty shall be based on:

(1) the seriousness of the violation, including the

nature, circumstances, extent, and gravity of the violation;

(2) the economic harm to property or the environment

caused by the violation;

(3) the history of previous violations;

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

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

(6) efforts to correct the violation; and

(7) any other matter that justice may require.

administrative penalties based on the criteria listed in Subsection

(b) for violations subject to an administrative penalty under this

section to ensure that the amount of a penalty imposed is

appropriate to the violation.

(d) The enforcement of an administrative penalty may be

stayed during the time the order is under judicial review if the

person pays the penalty to the clerk of the court or files a

supersedeas bond with the court in the amount of the penalty. A

person who cannot afford to pay the penalty or file the bond may

stay the enforcement by filing an affidavit in the manner required

by the Texas Rules of Civil Procedure for a party who cannot afford

to file security for costs, subject to the right of the board to

contest the affidavit as provided by those rules.

(e) The attorney general may sue to collect an

administrative penalty imposed under this section. In the suit the

attorney general may recover, on behalf of the state, the

reasonable expenses incurred in obtaining the penalty, including

investigation and court costs, reasonable attorney's fees, witness

fees, and other expenses.

(f) An administrative penalty collected under this section

shall be deposited in the general revenue fund.

(g) A proceeding to impose an administrative penalty under

this section is a contested case under Chapter 2001, Government

Code.

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 on the department's

Internet website information about the department's policies and

procedures relating to complaint investigation and resolution. The

department shall also provide that information to any person who

requests a written copy of the information.

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 Department of Transportation shall adopt

rules under Section 391.006, Transportation Code, as added by this

section, not later than September 1, 2010.

SECTION 6.03. Section 391.035(c), Transportation Code, is

amended to read as follows:

deposited to the credit of the Texas highway beautification [~~state~~

~~highway~~] fund account if collected by the attorney general and to

the credit of the county road and bridge fund of the county in which

the violation occurred if collected by a district or county

attorney.

SECTION 6.04. Subchapter B, Chapter 391, Transportation

Code, is amended by adding Section 391.0355 to read as follows:

Sec. 391.0355. ADMINISTRATIVE PENALTY. (a) In lieu of a

suit to collect a civil penalty, the commission, after notice and an

opportunity for a hearing before the commission, may impose an

administrative penalty against a person who violates this chapter

or a rule adopted by the commission under this chapter. Each day a

violation continues is a separate violation.

(b) The amount of the administrative penalty may not exceed

the maximum amount of a civil penalty under Section 391.035.

under Chapter 2001, Government Code.

(d) Judicial review of an appeal of an administrative

penalty imposed under this section is under the substantial

evidence rule.

(e) An administrative penalty collected under this section

shall be deposited to the credit of the Texas highway

beautification fund account.

SECTION 6.05. Section 391.063, Transportation Code, is

amended to read as follows:

Sec. 391.063. LICENSE FEE. The commission may set the

amount of a license fee according to a scale graduated by the number

of units of outdoor advertising and number of off-premise signs

under Chapter 394 owned by a license applicant.

SECTION 6.06. Section 391.065(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 6.07. 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 6.08. 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 6.09. Section 391.254(c), Transportation Code, is

amended to read as follows:

this section shall be deposited to the credit of the Texas highway

beautification [~~state highway~~] fund account.

SECTION 6.10. 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 6.11. (a) Subchapter A, Chapter 394,

Transportation Code, is amended by adding Section 394.006 to read

as follows:

Sec. 394.006. COMPLAINTS; RECORDS. (a) The department by

rule shall establish procedures for accepting and resolving written

complaints related to signs under this chapter. The rules must

include:

(1) a process to make information available describing

its procedures for complaint investigation and resolution,

including making information about the procedures available on the

department's Internet website;

(2) a simple form for filing complaints with the

department;

(3) a system to prioritize complaints so that the most

serious complaints receive attention before less serious

complaints; and

(4) a procedure for compiling and reporting detailed

annual statistics about complaints.

(b) The department shall provide on the department's

Internet website information about the department's policies and

procedures relating to complaint investigation and resolution. The

department shall also provide that information to any person who

requests a written copy.

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 Department of Transportation shall adopt

rules under Section 394.006, Transportation Code, as added by this

section, not later than September 1, 2010.

SECTION 6.12. 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 6.13. (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.

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.

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.

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.

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 6.14. 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 6.15. Section 394.081(c), Transportation Code, is

amended to read as follows:

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 6.16. Sections 394.082(a), (d), and (e),

Transportation Code, are amended to read as follows:

(a) In lieu of a suit to collect a civil penalty, the

commission, after notice and an opportunity for a hearing before

the commission, may impose an administrative penalty against a

person who [~~intentionally~~] violates this chapter or a rule adopted

by the commission under this chapter. Each day a violation

continues is a separate violation.

(d) Judicial review of an appeal of an administrative

penalty imposed under this section is under the substantial

evidence rule [~~by trial de novo~~].

(e) An administrative penalty collected under this section

shall be deposited to the credit of the Texas highway

beautification [~~state highway~~] fund account.

SECTION 6.17. Section 391.065(c), Transportation Code, is

repealed.

ARTICLE 7. PUBLIC TRANSPORTATION

SECTION 7.01. Section 301.063(f), Labor Code, is repealed.

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

(3) Chapters 2301 and 2302, Occupations Code.

Sec. 1001.003. COMPOSITION OF DEPARTMENT. The department

is composed of an executive director appointed by the board and

other employees required to efficiently implement:

(1) this subtitle;

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

(3) other laws that grant jurisdiction to or are

applicable to the department.

Sec. 1001.004. DIVISIONS. The board shall organize the

department into divisions to accomplish the department's functions

and the duties assigned to it, including divisions for:

(1) administration;

(2) motor carriers;

(3) motor vehicle distribution; and

(4) 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.

Sec. 1001.006. DEFENSE BY ATTORNEY GENERAL. The attorney

general shall defend an action brought against the board or the

department or an action brought against an employee of the

department as a result of the employee's official act or omission,

regardless of whether at the time of the institution of the action

that person has terminated service with the department.

[Sections 1001.007-1001.020 reserved for expansion]

SUBCHAPTER B. BOARD OF DEPARTMENT OF MOTOR VEHICLES

Sec. 1001.021. BOARD. (a) The board consists of nine

members appointed by the governor with the advice and consent of the

senate.

(b) Three members must be persons who hold a dealer's

license issued under Chapter 2301, Occupations Code, of whom two

must be franchised dealers of different classes and one must be an

independent dealer; one member must be a representative of a

manufacturer or distributor that holds a license issued under

Chapter 2301, Occupations Code; one member must be a tax

assessor-collector; one member must be a representative of a law

enforcement agency of a county or municipality; and one member must

be a representative of the motor carrier industry. The remaining

members must be public members.

person is not eligible for appointment as a member of the board 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 board

membership, attendance, or expenses; or

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

department.

(d) 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 may not serve as a member of the board.

(e) Appointments to the board shall be made without regard

to race, color, disability, sex, religion, age, or national origin

of the appointees and shall reflect the diversity of the population

of the state as a whole.

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. CHAIR AND VICE CHAIR; DUTIES. (a) The

governor shall appoint one of the board's members chair of the

board. The board shall elect one of its members vice chair of the

board. A chair or vice chair serves at the pleasure of the board.

(b) The chair shall:

(1) preside over board meetings, make rulings on

motions and points of order, and determine the order of business;

(2) represent the department in dealing with the

governor;

(3) report to the governor on the state of affairs of

the department at least quarterly;

(4) report to the board 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;

(6) periodically review the department's

organizational structure and submit recommendations for structural

changes to the governor, the board, and the Legislative Budget

Board;

(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;

(8) create subcommittees, appoint board members to

subcommittees, and receive the reports of subcommittees to the

board as a whole;

(9) appoint a member of the board to act in the chair's

absence; and

(10) serve as the departmental liaison with the

governor and the Office of State-Federal Relations to maximize

federal funding for transportation.

Sec. 1001.024. BOARD MEETINGS. The board shall hold

regular meetings at least quarterly and special meetings at the

call of the chair. Board members shall attend the meetings of the

board. The chair 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. RECOMMENDATIONS TO LEGISLATURE. (a) The

board 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 board, 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 board and relating to the operation of the department.

Sec. 1001.026. COMPENSATION. A member of the board is

entitled to compensation as provided by the General Appropriations

Act. If compensation for board 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 board.

Sec. 1001.027. GROUNDS FOR REMOVAL. (a) It is a ground for

removal from the board if a board member:

(1) does not have at the time of appointment or

maintain during service on the board the qualifications required by

Section 1001.021;

(2) violates a prohibition provided by Section

1001.021;

(3) cannot discharge the member's duties for a

substantial part of the term for which the member is appointed

because of illness or disability; or

(4) is absent from more than half of the regularly

scheduled board meetings that the board member is eligible to

attend during a calendar year, unless the absence is excused by

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.

potential ground for removal exists, the director shall notify the

chair of the board 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 board member, who shall

notify the governor and the attorney general that a potential

ground for removal exists.

Sec. 1001.028. CONFLICT OF INTEREST. (a) A member of the

board shall disclose in writing to the executive director if the

member has an interest in a matter before the board or has a

substantial financial interest in an entity that has a direct

interest in the matter.

(b) The member shall recuse himself or herself from the

board's deliberations and actions on the matter in Subsection (a)

and may not participate in the board's decision on the matter.

entity if the person:

(1) is an employee, member, director, or officer of

the entity; or

(2) owns or controls, directly or indirectly, more

than a five percent interest in the entity.

Sec. 1001.029. INFORMATION ON QUALIFICATIONS AND CONDUCT.

The department shall provide to the members of the board, as often

as necessary, information concerning the members' qualifications

for office and their responsibilities under applicable laws

relating to standards of conduct for state officers.

Sec. 1001.030. TRAINING ON DEPARTMENT AND CERTAIN LAWS

RELATING TO DEPARTMENT. (a) To be eligible to take office as a

member of the board, a person appointed to the board 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

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

board or the Texas Ethics Commission.

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 board.

Sec. 1001.031. ADVISORY COMMITTEES. (a) The board shall

establish separate advisory committees for the motor carrier, motor

vehicles, and vehicle titles and registration divisions to make

recommendations to the board or the executive director on the

operation of the applicable division. A committee has the

purposes, powers, and duties, including the manner of reporting its

work, prescribed by the board. A committee and each committee

member serves at the will of the board.

(b) The board shall appoint persons to each advisory

committee who:

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

director; and

(2) have knowledge about and interests in, and

represent a broad range of viewpoints about, the work of the

committee or applicable division.

must include a member to represent motor vehicle manufacturers and

a member to represent the recreational vehicle industry.

(d) The advisory committee for the motor carrier division

must include a member to represent the motor transportation

industry.

(e) A member of an advisory committee may not be compensated

by the board or the department for committee service.

[Sections 1001.032-1001.040 reserved for expansion]

SUBCHAPTER C. PERSONNEL

Sec. 1001.041. DEPARTMENT PERSONNEL. (a) Subject to the

General Appropriations Act or other law, the executive director

shall appoint deputies, assistants, and other personnel as

necessary to carry out the powers and duties of the department under

this code, other applicable vehicle laws of this state, and other

laws granting jurisdiction or applicable to the department.

(b) A person appointed under this section must have the

professional and administrative experience necessary to qualify

the person for the position to which the person is appointed.

Sec. 1001.042. DIVISION OF RESPONSIBILITIES. The board

shall develop and implement policies that clearly define the

respective responsibilities of the director and the staff of the

department.

Sec. 1001.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY;

REPORT. (a) The executive director or the director's designee

shall prepare and maintain a written policy statement to ensure

implementation of a program of equal employment opportunity under

which all personnel transactions are made without regard to race,

color, disability, sex, religion, age, or national origin. The

policy statement must include:

(1) personnel policies, including policies relating

to recruitment, evaluation, selection, appointment, training, and

promotion of personnel that are in compliance with Chapter 21,

Labor Code;

(2) a comprehensive analysis of the department

workforce that meets federal and state guidelines;

(3) procedures by which a determination can be made of

significant underuse in the department workforce of all persons for

whom federal or state guidelines encourage a more equitable

balance; and

(4) reasonable methods to appropriately address those

areas of significant underuse.

(b) A policy statement prepared under this section must:

(1) cover an annual period;

(2) be updated annually;

(3) be reviewed by the civil rights division of the

Texas Workforce Commission for compliance with Subsection (a); and

(4) be filed with the governor.

legislature based on the information received under Subsection (b).

The report may be made separately or as a part of other biennial

reports made to the legislature.

Sec. 1001.044. QUALIFICATIONS AND STANDARDS OF CONDUCT.

The executive director shall provide to department employees, as

often as necessary, information regarding their:

(1) qualification for office or employment under this

subtitle; and

(2) responsibilities under applicable laws relating

to standards of conduct for state employees.

Sec. 1001.045. CAREER LADDER PROGRAM; PERFORMANCE

EVALUATIONS. (a) The executive director or the director's

designee shall develop an intra-agency career ladder program. The

program must require intra-agency posting of all nonentry level

positions concurrently with any public posting.

(b) The executive director or the director's designee shall

develop a system of annual performance evaluations. All merit pay

for department employees must be based on the system established

under this subsection.

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.

Sec. 1002.002. RULES RESTRICTING ADVERTISING OR

COMPETITIVE BIDDING. The board may not adopt rules restricting

advertising or competitive bidding by a person regulated by the

department except to prohibit false, misleading, or deceptive

practices by the person.

CHAPTER 1003. DEPARTMENT PROCEDURES

Sec. 1003.001. APPLICABILITY OF CERTAIN LAWS. Except as

specifically provided by law, the department is subject to Chapters

2001 and 2002, Government Code.

Sec. 1003.002. SUMMARY PROCEDURES FOR ROUTINE MATTERS.

(a) The board or the department by rule may:

(1) create a summary procedure for routine matters;

and

(2) designate department activities that otherwise

would be subject to Chapter 2001, Government Code, as routine

matters to be handled under the summary procedure.

(b) An activity may be designated as a routine matter only

if the activity is:

(1) voluminous;

(2) repetitive;

(3) believed to be noncontroversial; and

(4) of limited interest to anyone other than persons

immediately involved in or affected by the proposed department

action.

contained in Chapter 2001, Government Code. The procedures must

require, for each party directly involved, notice of a proposed

negative action not later than the fifth day before the date the

action is proposed to be taken.

(d) A rule adopted by the board under this section may

provide for the delegation of authority to take action on a routine

matter to a salaried employee of the department designated by the

board.

Sec. 1003.003. REVIEW OF ACTION ON ROUTINE MATTER. (a) A

person directly or indirectly affected by an action of the board or

the department on a routine matter taken under the summary

procedure adopted under Section 1003.002 is entitled to a review of

the action under Chapter 2001, Government Code.

(b) The person must apply to the board not later than the

60th day after the date of the action to be entitled to the review.

immediately stays the action pending a hearing on the merits.

(d) The board may adopt rules relating to an application for

review under this section and consideration of the application.

Sec. 1003.004. INFORMAL DISPOSITION OF CERTAIN CONTESTED

CASES. The board or the department, as applicable, may, on written

agreement or stipulation of each party and any intervenor,

informally dispose of a contested case in accordance with Section

2001.056, Government Code, notwithstanding any provision of this

code or other law that requires a hearing before the board or the

department, as applicable.

CHAPTER 1004. PUBLIC ACCESS

Sec. 1004.001. 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. 1004.002. PUBLIC COMMENT. The board and the

department shall develop and implement policies that provide the

public with a reasonable opportunity to appear before the board or

the department and to speak on any issue under the jurisdiction of

the board or the department.

Sec. 1004.003. PUBLIC REPRESENTATION ON ADVISORY BODY.

(a) At least one-half of the membership of each advisory body

appointed by the board, other than an advisory body whose

membership is determined by this code or by other law, must

represent the general public.

(b) A public representative may not be:

(1) an officer, director, or employee of a business

entity regulated by the department;

(2) a person required to register with the Texas

Ethics Commission under Chapter 305, Government Code; or

(3) a person related within the second degree by

affinity or consanguinity to a person described by Subdivision (1)

or (2).

CHAPTER 1005. STANDARDS OF CONDUCT

Sec. 1005.001. 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.

PART 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS

DEPARTMENT OF TRANSPORTATION

SUBPART A. GENERAL PROVISIONS AND ADMINISTRATION

SECTION 8.2A.01. Section 201.202(a), Transportation Code,

is amended to read as follows:

(a) The commission shall organize the department into

divisions to accomplish the department's functions and the duties

assigned to it, including divisions for:

(1) aviation;

(2) highways and roads; and

(3) public transportation[~~; and~~

[~~(4) motor vehicle titles and registration~~].

SECTION 8.2A.02. 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; and

(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, Transportation Code, is

amended by adding Subdivision (1-a) and amending Subdivision (3) to

read as follows:

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

of Motor Vehicles.

(3) "Department" means the Texas Department of Motor

Vehicles [~~Transportation~~].

SECTION 8.2E.02. Section 502.051, Transportation Code, is

amended to read as follows:

Sec. 502.051. DEPOSIT OF REGISTRATION FEES IN STATE HIGHWAY

FUND. Except as otherwise provided by this chapter, the board

[~~Texas Transportation Commission~~] and the department shall deposit

all money received from registration fees in the state treasury to

the credit of the state highway fund.

SECTION 8.2E.03. Section 502.052(a), Transportation Code,

is amended to read as follows:

(a) The department shall prepare the designs and

specifications of license plates and devices selected by the board

[~~Texas Transportation Commission~~] to be used as the registration

insignia.

SECTION 8.2E.04. 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.

SECTION 8.2E.05. Section 502.1515, Transportation Code, is

amended to read as follows:

Sec. 502.1515. OUTSOURCING PRODUCTION OF RENEWAL NOTICES;

PAID ADVERTISING. The board [~~commission~~] may authorize the

department to enter into a contract with a private vendor to produce

and distribute motor vehicle registration renewal notices. The

contract may provide for the inclusion of paid advertising in the

registration renewal notice packet.

SECTION 8.2E.06. Section 502.352(c), Transportation Code,

is amended to read as follows:

(1) applying to the county assessor-collector, the

department, or the department's wire service agent, if the

department has a wire service agent;

(2) paying a fee of $25 for a 72-hour permit or $50 for

a 144-hour permit:

(A) in cash;

(B) by postal money order;

(D) by wire transfer through the department's

wire service agent, if any;

(E) by an escrow account; or

(F) where the service is provided, by a credit

card issued by:

(i) a financial institution chartered by a

state or the United States; or

(ii) a nationally recognized credit

organization approved by the board [~~Texas Transportation~~

~~Commission~~];

(3) paying a discount or service charge for a credit

card payment or escrow account, in addition to the fee; and

(4) furnishing to the county assessor-collector, the

department, or the department's wire service agent, evidence of

financial responsibility for the vehicle that complies with

Sections 502.153(c) and 601.168(a) and is written by an insurance

company or surety company authorized to write motor vehicle

liability insurance in this state.

SECTION 8.2E.07. Section 502.355(h), Transportation Code,

is amended to read as follows:

(h) A person operating a vehicle under a permit issued under

this section commits an offense if the person:

(1) transports farm products to a place of market,

storage, or processing or a railhead or seaport that is farther from

the place of production or point of entry, as appropriate, than the

distance provided for in the permit; or

(2) follows a route other than that prescribed by the

board [~~Texas Transportation Commission~~].

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

SECTION 8.2F.01. Sections 503.001(2) and (5),

Transportation Code, are amended to read as follows:

(2) "Commission" means the board of the Texas

Department of Motor Vehicles [~~Texas Transportation Commission~~].

(5) "Department" means the Texas Department of Motor

Vehicles [~~Transportation~~].

SUBPART G. SPECIALTY LICENSE PLATES

SECTION 8.2G.01. Section 504.001(a), Transportation Code,

is amended to read as follows:

(a) In this chapter:

(1) "Board" means the board of the Texas Department of

Motor Vehicles [~~, "commission" and "director" have the meanings~~

~~assigned by Section 201.001~~].

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

Vehicles.

SECTION 8.2G.02. Section 504.004, Transportation Code, is

amended to read as follows:

Sec. 504.004. RULES AND FORMS. The board [~~commission~~] may

adopt rules and the department may issue forms to implement and

administer this chapter.

SECTION 8.2G.03. Sections 504.851(b), (c), and (d),

Transportation Code, are amended to read as follows:

(b) Instead of the fees established by Section 504.101(c),

the board [~~commission~~] by rule shall establish fees for the

issuance or renewal of personalized license plates that are

marketed and sold by the private vendor. Fees must be reasonable

and not less than the greater of:

(1) the amounts necessary to allow the department to

recover all reasonable costs to the department associated with the

evaluation of the competitive sealed proposals received by the

department and with the implementation and enforcement of the

contract, including direct, indirect, and administrative costs; or

(2) the amount established by Section 504.101(c).

for the issuance or renewal of souvenir license plates, specialty

license plates, or souvenir or specialty license plates that are

personalized that are marketed and sold by the private

vendor. Fees must be reasonable and not less than the amounts

necessary to allow the department to recover all reasonable costs

to the department associated with the evaluation of the competitive

sealed proposals received by the department and with the

implementation and enforcement of the contract, including direct,

indirect, and administrative costs. A fee established under this

subsection is in addition to:

(1) the registration fee and any optional registration

fee prescribed by this chapter for the vehicle for which specialty

license plates are issued;

(2) any additional fee prescribed by this subchapter

for the issuance of specialty license plates for that vehicle; and

(3) any additional fee prescribed by this subchapter

for the issuance of personalized license plates for that vehicle.

(d) At any time as necessary to comply with Subsection (b)

or (c), the board [~~commission~~] may increase or decrease the amount

of a fee established under the applicable subsection.

SUBPART H. MISCELLANEOUS PROVISIONS

SECTION 8.2H.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 I. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES

SECTION 8.2I.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 J. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT

SECTION 8.2J.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 8.2J.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 8.2J.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 K. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR

VEHICLES

SECTION 8.2K.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 L. MOTOR CARRIER REGISTRATION

SECTION 8.2L.01. Section 643.001(1), Transportation Code,

is amended to read as follows:

(1) "Department" means the Texas Department of Motor

Vehicles [~~Transportation~~].

SUBPART M. SINGLE STATE REGISTRATION

SECTION 8.2M.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 N. MOTOR TRANSPORTATION BROKERS

SECTION 8.2N.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 O. FOREIGN COMMERCIAL MOTOR TRANSPORTATION

SECTION 8.2O.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 P. PRIVILEGED PARKING

SECTION 8.2P.01. Section 681.001(1), Transportation Code,

is amended to read as follows:

(1) "Department" means the Texas Department of Motor

Vehicles [~~Transportation~~].

SUBPART Q. ADMINISTRATIVE ADJUDICATION OF VEHICLE PARKING

AND STOPPING OFFENSES

SECTION 8.2Q.01. Section 682.008, Transportation Code, is

amended to read as follows:

Sec. 682.008. PRESUMPTIONS. In an administrative

adjudication hearing under this chapter:

(1) it is presumed that the registered owner of the

motor vehicle is the person who parked or stopped the vehicle at the

time and place of the offense charged; and

(2) the Texas Department of Motor Vehicles'

[~~Transportation's~~] computer-generated record of the registered

vehicle owner is prima facie evidence of the contents of the record.

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~~];

(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. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY

SECTION 8.2V.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 8.2V.02. Section 2, Article 4413(37), Revised

Statutes, is amended to read as follows:

Sec. 2. The Automobile Burglary and Theft Prevention

Authority is established in the Texas Department of Motor Vehicles

[~~Transportation~~]. The authority is not an advisory body to the

Texas Department of Motor Vehicles [~~Transportation~~].

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:

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.

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;

(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;

(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.

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:

Department of Motor Vehicles [~~Transportation~~] in an alias name only

for investigative personnel.

SECTION 8.3I.03. Sections 2301.005(a) and (b), Occupations

Code, are amended to read as follows:

(a) A reference in law, including a rule, to the Texas Motor

Vehicle Commission or to the board means [~~the director, except that~~

~~a reference to~~] the board of the Texas Department of Motor Vehicles

[~~means the commission if it is related to the adoption of rules~~].

(b) A reference in law, including a rule, to the executive

director of the Texas Motor Vehicle Commission means the executive

director of the Texas Department of Motor Vehicles.

SECTION 8.3I.04. 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 8.3I.05. 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 8.3I.06. The heading to Subchapter B, Chapter 2302,

Occupations Code, is amended to read as follows:

SUBCHAPTER B. BOARD [~~COMMISSION~~] POWERS AND DUTIES

SECTION 8.3I.07. 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 8.3I.08. 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 8.3I.09. 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 J. PENAL CODE

SECTION 8.3J.01. Section 31.03(c), Penal Code, is amended

to read as follows:

(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

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

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

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

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;

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:

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

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~~].

ARTICLE 9. RAIL 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 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 DIVISION. In addition to any

other duty imposed on the division, the division shall:

(1) assure that rail is an integral part of the

department's transportation planning process;

(2) coordinate and oversee rail projects that are

financed with money distributed by the department, including money

from the Texas rail relocation and improvement fund;

(3) develop and plan for improved passenger and

freight rail facilities and services in this state; and

(4) coordinate the efforts of the department, the

federal government, political subdivisions, and private entities

to continue the development of rail facilities and services in this

state.

SECTION 9.03. Subchapter H, Chapter 201, Transportation

Code, is amended by adding Sections 201.6013 and 201.6014 to read as

follows:

Sec. 201.6013. COORDINATION OF STATEWIDE PASSENGER RAIL

SYSTEM. To facilitate the development and interconnectivity of

rail systems in this state, the department shall coordinate

activities regarding the planning, construction, operation, and

maintenance of a statewide passenger rail system. The department

shall coordinate with other entities involved with passenger rail

systems, including governmental entities, private entities, and

nonprofit corporations.

Sec. 201.6014. LONG-TERM PLAN FOR STATEWIDE PASSENGER RAIL

SYSTEM. The department shall prepare and update annually a

long-term plan for a statewide passenger rail system. Information

contained in the plan must include:

(1) a description of existing and proposed passenger

rail systems;

(2) information regarding the status of passenger rail

systems under construction;

(3) an analysis of potential interconnectivity

difficulties;

(4) ridership projections for proposed passenger rail

projects; and

(5) ridership statistics for existing passenger rail

systems.

SECTION 9.04. (a) Section 1(1), Chapter 350 (S.B. 1101),

Acts of the 71st Legislature, Regular Session, 1989 (Article 6419c,

Vernon's Texas Civil Statutes), is amended to read as follows:

(1) "Department" [~~"Commission"~~] means the Texas

Department of Transportation [~~Railroad Commission of Texas~~].

(b) Sections 2(a) and (b), Chapter 350 (S.B. 1101), Acts of

the 71st Legislature, Regular Session, 1989 (Article 6419c,

Vernon's Texas Civil Statutes), are amended to read as follows:

(a) A railroad company that transports hazardous materials

in or through the state shall file with the department [~~commission~~]

a copy of each hazardous materials incident report that the company

files with the federal Department of Transportation in accordance

with 49 C.F.R. 171.16, not later than the 15th day after the date

that the incident that forms the basis of the report is discovered.

(b) Not later than April 1 of each year, a railroad company

that transports hazardous materials in or through the state shall

provide to the department [~~commission~~]:

(1) a map depicting the location of each railroad main

line and branch line that the company owns, leases, or operates in

the state;

(2) a map delineating the geographical limits of the

railroad company operating divisions or districts and the principal

operating officer for the railroad company in each operating

division or district;

(3) a primary and secondary telephone number for the

railroad company dispatcher responsible for train operations in

each operating division or district;

(4) a list of each type of hazardous material by hazard

class and the quantity of the material transported over each

railroad line owned, leased, or operated by the railroad company

during the preceding year; and

(5) the name and address of the railroad company

employee in charge of training persons to handle an incident

related to hazardous materials.

Legislature, Regular Session, 1989 (Article 6419c, Vernon's Texas

Civil Statutes), is amended to read as follows:

Sec. 3. DISTRIBUTION. (a) The department [~~commission~~]

shall compile information submitted to the department [~~commission~~]

under this Act for distribution to:

(1) local emergency management agencies located in

jurisdictions containing reported railroad operations; and

(2) the metropolitan planning organizations for those

jurisdictions.

(b) At least once each year the division of emergency

management shall distribute the information compiled by the

department [~~commission~~] to the appropriate officials for inclusion

in local emergency management plans.

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. COUNTY TRAFFIC OFFICERS

SECTION 11.01. Section 701.006, Transportation Code, is

amended to read as follows:

Sec. 701.006. [~~COMPLAINT; HEARING;~~] DISMISSAL. [~~(a)~~ If

~~a county traffic officer fails to perform the officer's duty to~~

~~enforce the law, the district engineer of the Texas Department of~~

~~Transportation district in which the officer operates may send a~~

~~written, signed complaint to the commissioners court.~~

[~~(b)~~ ~~On receipt of the complaint, the commissioners court~~

~~shall hold a hearing and summon the officer to appear before it.~~

[~~(c)~~ ~~If the commissioners court determines at the hearing~~

~~that the officer has not performed the officer's duty, the~~

~~commissioners court shall immediately discharge the officer and~~

~~promptly employ another officer.~~

[~~(d)~~] The commissioners court on its own initiative, or on

recommendation of the sheriff, may dismiss a county traffic officer

if the officer is no longer needed or if the officer's service is

unsatisfactory.

SECTION 11.02. Section 701.002(b), Transportation Code, is

repealed.

ARTICLE 12. ISSUANCE OF GENERAL OBLIGATION BONDS FOR HIGHWAY

IMPROVEMENT PROJECTS

SECTION 12.01. Subchapter A, Chapter 222, Transportation

Code, is amended by adding Section 222.005 to read as follows:

Sec. 222.005. ISSUANCE OF GENERAL OBLIGATION BONDS FOR

HIGHWAY IMPROVEMENT PROJECTS. (a) In this section:

(1) "Bonds" means bonds, notes, and other public

securities.

(2) "Credit agreement" has the meaning assigned by

Section 1371.001, Government Code.

(3) "Improvement" includes acquisition of the

highway, construction, reconstruction, and major maintenance,

including any necessary design, and the acquisition of

rights-of-way.

(b) The commission by order or resolution may issue general

obligation bonds for the purposes provided in this section. The

aggregate principal amount of the bonds that are issued may not

exceed the amount specified by Section 49-p(a), Article III, Texas

Constitution.

relating to the bonds. A credit agreement entered into under this

section may be secured by and payable from the same sources as the

bonds.

(d) The bonds shall be executed in the form, on the terms,

and in the denominations, bear interest, and be issued in

installments as prescribed by the commission, and must mature not

later than 30 years after their dates of issuance, subject to any

refundings or renewals. The bonds may be issued in multiple series

and issues from time to time and may have the provisions the

commission determines appropriate and in the interest of the state.

(e) The commission has all powers necessary or appropriate

to carry out this section and to implement Section 49-p, Article

III, Texas Constitution, including the powers granted to other

bond-issuing governmental agencies and units and to nonprofit

corporations by Chapters 1201, 1207, and 1371, Government Code.

(f) The bonds and the record of proceedings authorizing the

bonds and any related credit agreements shall be submitted to the

attorney general for approval as to their legality. If the attorney

general finds that they will be issued in accordance with this

section and other applicable law, the attorney general shall

approve them, and, after payment by the purchasers of the

obligations in accordance with the terms of sale and after

execution and delivery of the related credit agreements, the

obligations and related credit agreements are incontestable for any

cause.

(g) Bonds may be issued for one or more of the following

purposes:

(1) to pay all or part of the costs of highway

improvement projects;

(2) to pay:

(A) the costs of administering projects

authorized under this section;

(B) the cost or expense of the issuance of the

bonds; or

under a credit agreement; and

(3) to provide money for deposit in the Texas

Transportation Revolving Fund or similar revolving fund authorized

by law, to be used for the purpose of making loans for highway

improvement projects as provided by law.

(h) The proceeds from the issuance and sale of the bonds may

not be expended or used for the purposes authorized under this

section unless those proceeds have been appropriated by the

legislature.

(i) The comptroller shall pay the principal of the bonds as

they mature and the interest as it becomes payable and shall pay any

cost related to the bonds that becomes due, including payments

under credit agreements.

SECTION 12.02. This article does not make an appropriation.

This article takes effect only if a specific appropriation for the

implementation of the article is provided in a general

appropriations act of the 81st Legislature.

SECTION 12.03. Except as provided by Section 12.02 of this

article, this article takes effect immediately if this Act receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

article takes effect September 1, 2009, except as provided by

Section 12.02 of this article.

ARTICLE 13. METROPOLITAN PLANNING ORGANIZATIONS

SECTION 13.01. Section 472.034, Transportation Code, is

amended to read as follows:

Sec. 472.034. STANDARDS OF CONDUCT; ETHICS POLICY. (a) A

policy board member or employee of a metropolitan planning

organization may not:

(1) accept or solicit any gift, favor, or service that

might reasonably tend to influence the member or employee in the

discharge of official duties or that the member or employee knows or

should know is being offered with the intent to influence the

member's or employee's official conduct;

(2) accept other employment or engage in a business or

professional activity that the member or employee might reasonably

expect would require or induce the member or employee to disclose

confidential information acquired by reason of the official

position;

(3) accept other employment or compensation that could

reasonably be expected to impair the member's or employee's

independence of judgment in the performance of the member's or

employee's official duties;

(4) make personal investments that could reasonably be

expected to create a substantial conflict between the member's or

employee's private interest and the public interest; or

(5) intentionally or knowingly solicit, accept, or

agree to accept any benefit for having exercised the member's or

employee's official powers or performed the member's or employee's

official duties in favor of another.

(b) An employee of a metropolitan planning organization who

violates Subsection (a) or an ethics policy adopted under

Subsection (c) is subject to termination of the employee's

employment or another employment-related sanction.

Notwithstanding this subsection, a policy board member or employee

of a metropolitan planning organization who violates Subsection (a)

is subject to any applicable civil or criminal penalty if the

violation also constitutes a violation of another statute or rule.

(1) adopt bylaws establishing an ethics policy for

employees of a metropolitan planning organization and policy board

members consistent with the standards prescribed by Subsection (a),

including provisions to prevent a policy board member from having a

conflict of interest in business before the metropolitan planning

organization; and

(2) distribute a copy of the ethics policy to:

(A) each new employee not later than the third

business day after the date the person begins employment with the

agency; and

(B) each new policy board member not later than

the third business day after the date the person qualifies for

office.

(d) If a person with knowledge of a violation of an ethics

policy established under Subsection (c) that also constitutes a

criminal offense under another law of this state reports the

violation to an appropriate prosecuting attorney who concludes that

there is reasonable basis to initiate an investigation, then, not

later than the 60th day after the date a person notifies the

prosecuting attorney under this subsection, the prosecuting

attorney shall notify the Texas Ethics Commission of the status of

the prosecuting attorney's investigation of the alleged violation.

The Texas Ethics Commission shall, on the request of the

prosecuting attorney, assist the prosecuting attorney in

investigating the alleged violation.

(e) To the extent an employee of a metropolitan planning

organization is subject to the ethics policy of another

governmental entity and to the extent that policy conflicts with

this section, the stricter policy prevails.

SECTION 13.02. Not later than January 1, 2010, each policy

board of a metropolitan planning organization shall adopt bylaws

establishing an ethics policy as required by Section 472.034(c),

Transportation Code, as added by this article, and distribute a

copy of the ethics policy to each policy board member and employee.

ARTICLE 14. MOTOR VEHICLE ACCIDENT REPORTS

SECTION 14.01. Section 550.065, Transportation Code, is

amended by amending Subsections (a), (b), and (d) and adding

Subsections (e), (f), and (g) to read as follows:

(a) This section applies only to information that is held by

the department or another governmental entity and relates to a

motor vehicle accident reported under this chapter or Section

601.004, including accident report information compiled under

Section 201.805, as added by Chapter 1407 (S.B. 766), Acts of the

80th Legislature, Regular Session, 2007.

(b) Except as provided by Subsection (c) or (e), the

information is privileged and for the confidential use of:

(1) the department; and

(2) an agency of the United States, this state, or a

local government of this state that has use for the information for

accident prevention purposes.

(d) The fee for a copy of the accident report [~~or accident~~

~~information~~] is $6 [~~or the actual cost of the preparation of the~~

~~copy, whichever is less~~]. The copy may be certified by the

department or the governmental entity for an additional fee of $2.

The department or the governmental entity may issue a certification

that no report or information is on file for a fee of $6.

(e) In addition to the information required to be released

under Subsection (c), the department may release:

(1) information relating to motor vehicle accidents

that the department compiles under Section 201.805, as added by

Chapter 1407 (S.B. 766), Acts of the 80th Legislature, Regular

Session, 2007; or

(2) a vehicle identification number and specific

accident information relating to that vehicle.

(f) The department:

(1) may not release under Subsection (e) information

that:

(A) is personal information, as defined by

Section 730.003; or

(B) would allow a person to satisfy the

requirements of Subsection (c)(4) for the release of information

for a specific motor vehicle accident; and

(2) shall withhold or redact the following items of

information:

(A) the first, middle, and last name of any

person listed in an accident report, including a vehicle driver,

occupant, owner, or lessee, a bicyclist, a pedestrian, or a

property owner;

(B) the number of any driver's license,

commercial driver's license, or personal identification

certificate issued to any person listed in an accident report;

person listed in an accident report;

(D) the address, other than zip code, and

telephone number of any person listed in an accident report;

(E) the license plate number of any vehicle

listed in an accident report;

(F) the date of any accident, other than the

year;

(G) the name of any insurance company listed as a

provider of financial responsibility for a vehicle listed in an

accident report;

(H) the number of any insurance policy issued by

an insurance company listed as a provider of financial

responsibility;

(I) the date the peace officer who investigated

the accident was notified of the accident;

(J) the date the investigating peace officer

arrived at the accident site;

(K) the date the investigating officer's report

was prepared;

(L) the badge number or identification number of

the investigating officer;

(M) the date on which any person who died as a

result of the accident died;

(N) the date of any commercial motor vehicle

report; and

(O) the place where any person injured or killed

in an accident was taken and the person or entity that provided the

transportation.

(g) The amount that may be charged for information provided

under Subsection (e) shall be calculated in the manner specified by

Chapter 552, Government Code, for public information provided by a

governmental body under that chapter.

ARTICLE 16. TEXAS TRANSPORTATION REVOLVING FUND

SECTION 16.01. Chapter 222, Transportation Code, is amended

by adding Subchapter F to read as follows:

SUBCHAPTER F. TEXAS TRANSPORTATION REVOLVING FUND

Sec. 222.131. DEFINITIONS. In this subchapter:

(1) "Bonds" means bonds, notes, and other public

securities.

(2) "Credit agreement" has the meaning assigned by

Section 1371.001, Government Code.

(3) "Fund" means the Texas Transportation Revolving

Fund.

(4) "Fund revenue bonds" means bonds issued under

Section 222.135.

(5) "Highway improvement project" includes

acquisition of the highway, construction, reconstruction, and

major maintenance, including any necessary design, and the

acquisition of rights-of-way.

(6) "Transit provider" has the meaning assigned by

Section 370.003.

(7) "Transportation project" means a tolled or

nontolled highway improvement project.

Sec. 222.132. CREATION OF FUND. The Texas Transportation

Revolving Fund is created as a fund held in the Texas Treasury

Safekeeping Trust Company.

Sec. 222.133. ADMINISTRATION OF FUND. (a) The commission,

through the department, shall manage, invest, use, administer, and

provide financial assistance from the fund as provided by this

subchapter.

(b) The commission may create within the fund one or more

accounts or subaccounts as determined appropriate and necessary by

the commission.

governor, the lieutenant governor, and the Legislative Budget Board

a report providing information on the operation of the fund,

including:

(1) the amounts and sources of money deposited in the

fund during the year;

(2) investments and returns on investments of money in

the fund;

(3) loans made from the fund;

(4) other financial assistance provided from the fund;

(5) the status of any defaults on repayment of loans or

other financial assistance provided from the fund; and

(6) the details of any transportation project for

which financial assistance is received from the fund, including the

identity of any highway directly affected by the project, and the

degree to which the project is designed to reduce congestion,

improve traffic safety, and enhance connectivity.

Sec. 222.134. SOURCES OF MONEY DEPOSITED IN FUND. The

commission may deposit in the fund money derived from any source

available to the commission, including:

(1) if appropriated by the legislature for that

purpose:

(A) the proceeds of bonds issued under Section

222.003;

(B) the proceeds of bonds authorized by Section

49-p, Article III, Texas Constitution, if the law providing for the

issuance of the bonds does not prohibit the deposit of the proceeds

in the fund;

state highway fund;

(D) money provided by the commission from the

Texas Mobility Fund that is in excess of the money required to be on

deposit in the Texas Mobility Fund by the proceedings authorizing

Texas Mobility Fund bonds and credit agreements; and

(E) other direct appropriations;

(2) repayments of principal and interest on loans made

under Section 222.137;

(3) the proceeds from the sale of loans under Section

222.140;

(4) the proceeds from the sale of fund revenue bonds;

and

(5) gifts and grants.

Sec. 222.135. FUND REVENUE BONDS. (a) The commission may

issue, sell, and deliver fund revenue bonds for the purpose of

providing money for the fund.

(b) Fund revenue bonds are special obligations of the

commission payable from the repayment of loans from the fund and

other money on deposit in the fund as the commission may designate.

or a pledge of the faith and credit of the state.

(d) The commission by order or resolution may issue fund

revenue bonds in the name and on behalf of the state and the

department and may enter into credit agreements related to the

bonds. The bonds may be issued in multiple series and issues from

time to time and may be issued on the terms and with the provisions

the commission determines appropriate and in the interests of the

state.

(e) The commission has all powers necessary or appropriate

to carry out this section, including the powers granted to other

bond-issuing governmental agencies and units and to nonprofit

corporations by Chapters 1201, 1207, and 1371, Government Code.

(f) Before the issuance of fund revenue bonds or credit

agreements, the commission shall submit the record of proceedings

of the commission authorizing the issuance, execution, and delivery

of the bonds or credit agreement and any contract providing revenue

or security to pay the bonds or credit agreement to the attorney

general for review. If the attorney general finds that the

proceedings authorizing a bond or credit agreement and any bonds

authorized in the proceedings conform to the requirements of the

Texas Constitution and this subchapter, the attorney general shall

approve the proceedings and the bonds and deliver to the

comptroller for registration a copy of the attorney general's legal

opinion stating that approval and the record of proceedings. After

approval, the bonds or credit agreement may be executed and

delivered, exchanged, or refinanced from time to time in accordance

with those authorizing proceedings.

(g) If the proceedings and any bonds authorized in the

proceedings are approved by the attorney general and registered by

the comptroller as provided above, the bonds or credit agreement,

as applicable, or a contract providing revenue or security included

in or executed and delivered according to the authorizing

proceedings are incontestable in a court or other forum and are

valid, binding, and enforceable according to their terms.

(h) The proceeds from the sale of fund revenue bonds may be

used to finance other funds or accounts relating to the bonds or

credit agreement, including a debt service reserve fund, and to pay

the costs of issuance. All remaining proceeds received from the

sale of the bonds shall be deposited in the fund and invested and

used as provided by this subchapter.

Sec. 222.136. INVESTMENT OF MONEY IN THE FUND. (a) Money

in the fund may be invested as provided by Chapter 2256, Government

Code, except that the proceeds of bonds deposited in the fund under

Section 222.134 shall be subject to any limitations contained in

the documents authorizing the issuance of the bonds.

(b) Income received from the investment of money in the fund

shall be deposited in the fund, subject to requirements that may be

imposed by the proceedings authorizing bonds issued to provide

money for deposit in the fund that are necessary to protect the

tax-exempt status of interest payable on the bonds in accordance

with applicable law of the United States concerning federal income

taxation of interest on the bonds. Investment income shall be

deposited in an account or subaccount in the fund as determined by

the department.

Sec. 222.137. USES OF MONEY IN THE FUND. (a) Except as

otherwise provided by this section, the commission may use money

held in the fund to provide financial assistance to a public entity,

including the department, for the costs of a transportation project

by:

(1) making loans, including through the purchase of

obligations of the public entity;

(2) providing liquidity or credit enhancement,

including through the agreement to loan to or purchase bonds,

notes, or other obligations from a public entity;

(3) serving as a reserve fund established in

connection with debt financing by the public entity;

(4) providing capitalized interest for debt financing

by the public entity; or

(5) providing a guarantee of the payment of the costs

of operations and maintenance of a transportation project.

(b) The proceeds of bonds authorized by Section 49-p,

Article III, Texas Constitution, or issued under Section 222.003

may only be used to provide financial assistance for highway

improvement projects, subject to any limitations provided by law.

the purposes for which revenues are dedicated under Section 7-a,

Article VIII, Texas Constitution.

(d) Money from the Texas Mobility Fund may only be used to

provide financial assistance for state highway improvement

projects, publicly owned toll roads, and public transportation

projects, whether on or off of the state highway system, subject to

any limitations provided by law.

(e) Money in the fund may be used to pay debt service on fund

revenue bonds.

(f) The commission may require the payment of reasonable

fees and other amounts by a public entity for all forms of financial

assistance provided under this section.

(g) The department shall monitor the use of financial

assistance provided to a public entity to ensure the financial

assistance is used for purposes authorized by law and may audit the

books and records of a public entity for this purpose.

Sec. 222.138. BORROWING FROM THE FUND BY PUBLIC ENTITY.

(a) A public entity, including a municipality, county, district,

authority, agency, department, board, or commission, that is

authorized by law to construct, maintain, or finance a

transportation project may borrow money from the fund, including by

direct loan or other financial assistance from the fund, and may

enter into any agreement relating to receiving financial assistance

from the fund.

(b) Money received by a public entity under this subchapter

must be segregated from other funds under the control of the public

entity and may only be used for purposes authorized by this

subchapter.

financial assistance, a public entity may:

(1) pledge revenues or income from any available

source;

(2) pledge, levy, and collect any taxes, subject to

any constitutional limitation; or

(3) pledge any combination of revenues, income, and

taxes.

(d) This section is wholly sufficient authority for a public

entity to borrow or otherwise obtain financial assistance from the

fund as authorized by this subchapter and to pledge revenues,

income, or taxes, or any combination of revenues, income, and

taxes, to the repayment of a loan or other financial assistance.

Sec. 222.139. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS.

(a) For financial assistance that must be repaid, the commission

shall determine the terms and conditions of the repayment,

including the interest rates to be charged.

(b) The commission may require the entity receiving

financial assistance that must be repaid to make charges, levy and

collect taxes, pledge revenues, or otherwise take such action as

may be necessary to provide for money in an amount sufficient for

repayment according to the terms agreed on at the time the financial

assistance is provided.

commission, in lieu of requiring the repayment of financial

assistance and any interest thereon, may require that revenues from

the project be shared between the entity and the department, and the

entity and the department may enter into an agreement specifying

the terms and conditions of the revenue sharing.

(d) The department shall deposit in the fund all amounts

received from repayment of the financial assistance or as a share of

revenues from a tolled highway improvement project.

Sec. 222.140. SALE OF LOANS. (a) As used in this section,

"loan" includes any financial assistance that must be repaid or any

portion of such assistance.

(b) The commission may sell any loans made from money in the

fund and shall deposit the proceeds of the sale in the fund.

commission may submit to the attorney general for review and

approval the related financial assistance agreement, which shall,

for the purposes of Chapter 1202, Government Code, be considered to

be a public security, along with the record of proceedings of the

borrowing entity relating to the agreement. If the attorney

general approves the agreement, it shall be incontestable in a

court or other forum and is valid, binding, and enforceable

according to its terms as provided by Chapter 1202, Government

Code.

(d) The commission must sell the loans using a competitive

bidding process and at the price and under the terms and conditions

that it determines to be reasonable.

(e) As part of the sales agreement with the purchaser of a

loan, the commission may agree to perform the functions required to

enforce the conditions and requirements stated in the loans,

including the payment of debt service by the borrowing entity.

(f) The commission may exercise any powers necessary to

carry out the authority granted by this section, including the

authority to contract with any person to accomplish the purposes of

this section.

(g) The commission shall not be liable for the repayment of,

and may not repay, any loan sold under this section.

Sec. 222.141. WAIVER OF SOVEREIGN IMMUNITY. A public

entity receiving financial assistance under this subchapter and the

department may agree to waive sovereign immunity to suit for the

purpose of adjudicating a claim to enforce any of their obligations

brought by a party for breach of the terms of the financial

assistance agreement.

Sec. 222.142. IMPLEMENTATION BY RULE. (a) The commission

shall adopt rules to implement this subchapter, including rules:

(1) establishing eligibility and prioritization

criteria for entities applying for financial assistance from the

fund and for transportation projects that may receive financial

assistance from the fund;

(2) specifying the method for setting the terms and

conditions for providing financial assistance from the fund and for

the repayment of financial assistance from the fund; and

(3) establishing procedures for the sale of loans

originated from amounts on deposit in the fund.

(b) The eligibility and prioritization criteria described

in Subsection (a)(1) shall provide that financial assistance made

available for the delivery of a transportation project by the

department may not be in a larger amount or on more favorable terms

than the financial assistance requested and previously offered for

the delivery of that transportation project by a public entity, if

any.

to advise the department and the commission on the development of

the commission's initial rules required by this section. The

committee must include one or more members representing a local

toll project entity, as defined in Section 228.0111. Chapter 2110,

Government Code, does not apply to the committee. This subsection

expires on the date the commission adopts initial rules under this

section.

SECTION 16.02. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect September 1, 2009.

ARTICLE 17. USE OF STATE HIGHWAY FUND IN CONNECTION WITH CERTAIN

TOLL FACILITIES

SECTION 17.01. Section 222.001, Transportation Code, is

amended to read as follows:

Sec. 222.001. USE OF STATE HIGHWAY FUND. (a) Money that is

required to be used for public roadways by the Texas Constitution or

federal law and that is deposited in the state treasury to the

credit of the state highway fund, including money deposited to the

credit of the state highway fund under Title 23, United States Code,

may be used only:

(1) to improve the state highway system;

(2) to mitigate adverse environmental effects that

result directly from construction or maintenance of a state highway

by the department; or

(3) by the Department of Public Safety to police the

state highway system and to administer state laws relating to

traffic and safety on public roads.

(b) Notwithstanding Section 222.103, the department may not

pledge or otherwise encumber money deposited in the state highway

fund to:

(1) guarantee a loan obtained by a public or private

entity for costs associated with a toll facility of the public or

private entity; or

(2) insure bonds issued by a public or private entity

for costs associated with a toll facility of the public or private

entity.

SECTION 17.02. Section 222.001(b), Transportation Code, as

added by this article, applies only to an agreement to pledge or

otherwise encumber money in the state highway fund that is entered

into on or after the effective date of this Act, except that that

section does not apply to an agreement to pledge or otherwise

encumber money in the state highway fund that is associated with the

following projects, regardless of whether the agreement is

finalized on or after the effective date of this Act:

(1) the State Highway 161 project in Dallas County;

(2) the Southwest Parkway (State Highway 121) in

Tarrant County from Interstate Highway 30 to Dirks Road/Altamesa

Boulevard and the Chisholm Trail project from Dirks Road/Altamesa

Boulevard to U.S. Highway 67 in the city of Cleburne;

(3) a project associated with the highway designated

as the Trinity Parkway in the city of Dallas;

(4) the Grand Parkway project (State Highway 99);

(5) the Hidalgo Loop project in Hidalgo County from

U.S. Highway 83 near the Pharr-Reynosa International Bridge to the

U.S. Highway 83 Expressway in Penitas to U.S. Highway 281 north of

Edinburg to U.S. Highway 83 west of Farm-to-Market Road 1423 to U.S.

Highway 83 near the Pharr-Reynosa International Bridge;

(6) the U.S. Highway 290 project from east of U.S.

Highway 183 to east of Farm-to-Market Road 734 in Travis County;

(7) the State Highway 71 East project from Riverside

Drive east to east of State Highway 130 and including the

interchange at State Highway 71 East/U.S. Highway 183 South in

Travis County;

(8) the U.S. Highway 183 South project from Springdale

Road south to State Highway 71 East in Travis County;

(9) the Loop 1 added capacity project, comprised of

the addition of a managed lane on Loop 1 from Parmer Lane to State

Highway 45 South in Travis County;

(10) any transaction related to the acquisition by a

regional mobility authority, a regional tollway authority, or a

county acting under Chapter 284 of a toll project of the department

all or a portion of which was existing and in operation prior to

September 1, 2009;

(11) any transaction related to the assumption by a

regional mobility authority, a regional tollway authority, or a

county acting under Chapter 284 of the operations of a toll project

of the department all or a portion of which was existing and in

operation prior to September 1, 2009;

(12) the Loop 49 project from U.S. Highway 69 north of

Lindale to State Highway 110 in Smith County; or

(13) the U.S. Highway 281 project in Bexar County from

Loop 1604 to the Comal County line and including five direct

connectors at the Loop 1604/U.S. Highway 281 interchange.

SECTION 17.03. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect September 1, 2009.

ARTICLE 18. USED AUTOMOTIVE PARTS RECYCLERS

SECTION 18.01. Section 2302.001(6), Occupations Code, is

amended to read as follows:

(6) "Salvage vehicle agent" means a person who

acquires, sells, or otherwise deals in nonrepairable or salvage

motor vehicles [~~or used parts~~] in this state as directed by the

salvage vehicle dealer under whose license the person operates.

The term does not include a person who:

(A) is a licensed salvage vehicle dealer or a

licensed used automotive parts recycler;

(B) is a partner, owner, or officer of a business

entity that holds a salvage vehicle dealer license or a used

automotive parts recycler license;

dealer or a licensed used automotive parts recycler; or

(D) only transports salvage motor vehicles for a

licensed salvage vehicle dealer or a licensed used automotive parts

recycler.

SECTION 18.02. Section 2302.006(b), Occupations Code, is

amended to read as follows:

(b) This chapter applies to a transaction in which a motor

vehicle:

(1) is sold, transferred, released, or delivered to a

metal recycler for the purpose of reuse or resale as a motor vehicle

[~~or as a source of used parts~~]; and

(2) is used for that purpose.

SECTION 18.03. Subchapter A, Chapter 2302, Occupations

Code, is amended by adding Section 2302.008 to read as follows:

Sec. 2302.008. APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE

PARTS RECYCLERS. This chapter does not apply to a used automotive

parts recycler licensed under Chapter 2309.

SECTION 18.04. Section 2302.103(b), Occupations Code, is

amended to read as follows:

(b) An applicant may apply for a salvage vehicle dealer

license with an endorsement in one or more of the following

classifications:

(1) new automobile dealer;

(2) used automobile dealer;

(3) [~~used vehicle parts dealer;~~

[~~(4)~~] salvage pool operator;

(4) [~~(5)~~] salvage vehicle broker; or

(5) [~~(6)~~] salvage vehicle rebuilder.

SECTION 18.05. Section 2302.107(d), Occupations Code, is

amended to read as follows:

(d) A salvage vehicle agent may acquire, sell, or otherwise

deal in, nonrepairable or salvage motor vehicles [~~or used parts~~] as

directed by the authorizing dealer.

SECTION 18.06. Section 2302.202, Occupations Code, is

amended to read as follows:

Sec. 2302.202. RECORDS OF PURCHASES. A salvage vehicle

dealer shall maintain a record of each salvage motor vehicle [~~and~~

~~each used part~~] purchased or sold by the dealer.

SECTION 18.07. Subtitle A, Title 14, Occupations Code, is

amended by adding Chapter 2309 to read as follows:

CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2309.001. SHORT TITLE. This chapter may be cited as

the Texas Used Automotive Parts Recycling Act.

Sec. 2309.002. DEFINITIONS. In this chapter:

(1) "Insurance company," "metal recycler," "motor

vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle

title," "salvage motor vehicle," "salvage vehicle title," and

"salvage vehicle dealer" have the meanings assigned by Section

501.091, Transportation Code.

(2) "Commission" means the Texas Commission of

Licensing and Regulation.

(3) "Department" means the Texas Department of

Licensing and Regulation.

(4) "Executive director" means the executive director

of the department.

(5) "Used automotive part" has the meaning assigned to

"used part" by Section 501.091, Transportation Code.

(6) "Used automotive parts recycler" means a person

licensed under this chapter to operate a used automotive parts

recycling business.

(7) "Used automotive parts recycling" means the

dismantling and reuse or resale of used automotive parts and the

safe disposal of salvage motor vehicles or nonrepairable motor

vehicles, including the resale of those vehicles.

Sec. 2309.003. APPLICABILITY OF CHAPTER TO METAL RECYCLERS.

(a) Except as provided by Subsection (b), this chapter does not

apply to a transaction to which a metal recycler is a party.

(b) This chapter applies to a transaction in which a motor

vehicle:

(1) is sold, transferred, released, or delivered to a

metal recycler as a source of used automotive parts; and

(2) is used as a source of used automotive parts.

Sec. 2309.004. APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE

DEALERS. (a) Except as provided by Subsection (b), this chapter

does not apply to a transaction in which a salvage vehicle dealer is

a party.

(b) This chapter applies to a salvage vehicle dealer who

deals in used automotive parts as more than an incidental part of

the salvage vehicle dealer's primary business.

Sec. 2309.005. APPLICABILITY OF CHAPTER TO INSURANCE

COMPANIES. This chapter does not apply to an insurance company.

[Sections 2309.006-2309.050 reserved for expansion]

SUBCHAPTER B. ADVISORY BOARD

Sec. 2309.051. USED AUTOMOTIVE PARTS RECYCLING ADVISORY

BOARD. (a) The advisory board consists of five members

representing the used automotive parts industry in this state

appointed by the presiding officer of the commission with the

approval of the commission.

(b) The advisory board shall include members who represent

used automotive parts businesses owned by domestic entities, as

defined by Section 1.002, Business Organizations Code.

represents a used automotive parts business owned by a foreign

entity, as defined by Section 1.002, Business Organizations Code.

(d) Appointments to the advisory board shall be made without

regard to the race, color, disability, sex, religion, age, or

national origin of the appointee.

Sec. 2309.052. TERMS; VACANCIES. (a) Advisory board

members serve terms of six years, with the terms of one or two

members expiring on February 1 of each odd-numbered year.

(b) A member may not serve more than two full consecutive

terms.

of the commission shall appoint a replacement who meets the

qualifications of the vacated position to serve for the remainder

of the term.

Sec. 2309.053. PRESIDING OFFICER. The presiding officer of

the commission shall appoint one of the advisory board members to

serve as presiding officer of the advisory board for a term of one

year. The presiding officer of the advisory board may vote on any

matter before the advisory board.

Sec. 2309.054. POWERS AND DUTIES OF ADVISORY BOARD. The

advisory board shall provide advice and recommendations to the

department on technical matters relevant to the administration and

enforcement of this chapter, including licensing standards,

continuing education requirements, and examination content, if

applicable.

Sec. 2309.055. COMPENSATION; REIMBURSEMENT OF EXPENSES.

Advisory board members may not receive compensation but are

entitled to reimbursement for actual and necessary expenses

incurred in performing the functions of the advisory board, subject

to the General Appropriations Act.

Sec. 2309.056. MEETINGS. The advisory board shall meet

twice annually and may meet at other times at the call of the

presiding officer of the commission or the executive director.

[Sections 2309.057-2309.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT

Sec. 2309.101. GENERAL POWERS AND DUTIES. The executive

director or commission, as appropriate, may take action as

necessary to administer and enforce this chapter.

Sec. 2309.102. RULES. (a) The commission shall adopt

rules for licensing used automotive parts recyclers and used

automotive parts employees.

(b) The commission by rule shall adopt standards of conduct

for license holders under this chapter.

Sec. 2309.103. EXAMINATION OF CRIMINAL CONVICTION. The

department may conduct an examination of any criminal conviction or

deferred adjudication of an applicant, including by obtaining any

criminal history record information permitted by law.

Sec. 2309.104. FEES. The commission shall establish and

collect reasonable and necessary fees in amounts sufficient to

cover the costs of administering this chapter.

Sec. 2309.105. RULES RESTRICTING ADVERTISING OR

COMPETITIVE BIDDING. (a) The commission may not adopt a rule

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 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.

Sec. 2309.106. PERIODIC AND RISK-BASED INSPECTIONS.

(a) The department shall inspect each used automotive parts

recycling facility at least once every two years.

(b) The department may enter and inspect at any time during

business hours:

(1) the place of business of any person regulated

under this chapter; or

(2) any place in which the department has reasonable

cause to believe that a license holder is in violation of this

chapter or in violation of a rule or order of the commission or

executive director.

based on a schedule of risk-based inspections using the following

criteria:

(1) the type and nature of the used automotive parts

recycler;

(2) the inspection history;

(3) any history of complaints involving a used

automotive parts recycler; and

(4) any other factor determined by the commission by

rule.

(d) A used automotive parts recycler shall pay a fee for

each risk-based inspection performed under this section. The

commission by rule shall set the amount of the fee.

(e) In conducting an inspection under this section, the

department may inspect a facility, a used automotive part, a

business record, or any other place or thing reasonably required to

enforce this chapter or a rule or order adopted under this chapter.

Sec. 2309.107. PERSONNEL. The department may employ

personnel necessary to administer and enforce this chapter.

[Sections 2309.108-2309.150 reserved for expansion]

SUBCHAPTER D. LICENSE REQUIREMENTS

Sec. 2309.151. USED AUTOMOTIVE PARTS RECYCLER LICENSE

REQUIRED. (a) Unless the person holds a used automotive parts

recycler license issued under this chapter, a person may not own or

operate a used automotive parts recycling business or sell used

automotive parts.

(b) A used automotive parts recycler license:

(1) is valid only with respect to the person who

applied for the license; and

(2) authorizes the license holder to operate a used

automotive parts recycling business only at the one facility listed

on the license.

Sec. 2309.152. GENERAL LICENSE APPLICATION REQUIREMENTS.

An applicant for a used automotive parts recycler license under

this chapter must submit to the department:

(1) a completed application on a form prescribed by

the executive director;

(2) the required fees; and

(3) any other information required by commission rule.

Sec. 2309.153. LICENSE REQUIREMENTS. An applicant for a

used automotive parts recycler license under this chapter must

provide in a manner prescribed by the executive director:

(1) a federal tax identification number;

(2) proof of insurance in the amount prescribed by the

executive director;

(3) proof of ownership or lease of the property where

the applicant will operate a used automotive parts recycling

facility; and

(4) proof of a storm water permit if the applicant is

required by the Texas Commission on Environmental Quality to obtain

a permit.

Sec. 2309.154. USED AUTOMOTIVE PARTS EMPLOYEE LICENSE

REQUIRED. (a) A person employed by a used automotive parts

recycler may not in the scope of the person's employment acquire a

vehicle or used automotive parts and may not sell used automotive

parts unless the person holds a used automotive parts employee

license issued under this chapter.

(b) The commission by rule shall adopt requirements for the

application for and issuance of a used automotive parts employee

license under this chapter.

Sec. 2309.155. NONTRANSFERABILITY OF LICENSE. A license

issued by the executive director is valid throughout this state and

is not transferable.

Sec. 2309.156. LICENSE RENEWAL. (a) A license issued

under this chapter is valid for one year. The department may adopt

a system under which licenses expire at different times during the

year.

(b) The department shall notify the license holder at least

30 days before the date a license expires. The notice must be in

writing and sent to the license holder's last known address

according to the records of the department.

a license issued under this chapter.

[Sections 2309.157-2309.200 reserved for expansion]

SUBCHAPTER E. LOCAL REGULATION

Sec. 2309.201. APPLICABILITY OF CERTAIN MUNICIPAL

ORDINANCES, LICENSES, AND PERMITS. (a) The requirements of this

chapter apply in addition to the requirements of any applicable

municipal ordinance relating to the regulation of a person who

deals in nonrepairable or salvage motor vehicles or used automotive

parts.

(b) This chapter does not prohibit the enforcement of an

applicable municipal license or permit requirement that is related

to an activity regulated under this chapter.

[Sections 2309.202-2309.250 reserved for expansion]

SUBCHAPTER F. ENFORCEMENT

Sec. 2309.251. ADMINISTRATIVE PENALTY. (a) The

commission may impose an administrative penalty on a person under

Subchapter F, Chapter 51, regardless of whether the person holds a

license under this chapter, if the person violates:

(1) this chapter or a rule adopted under this chapter;

(2) a rule or order of the executive director or

commission.

(b) An administrative penalty may not be imposed unless the

person charged with a violation is provided the opportunity for a

hearing.

Sec. 2309.252. CEASE AND DESIST ORDER; INJUNCTION; CIVIL

PENALTY. (a) The executive director may issue a cease and desist

order as necessary to enforce this chapter if the executive

director determines that the action is necessary to prevent a

violation of this chapter and to protect public health and safety.

(b) The attorney general or executive director may

institute an action for an injunction or a civil penalty under this

chapter as provided by Section 51.352.

Sec. 2309.253. SANCTIONS. The department may impose

sanctions as provided by Section 51.353.

Sec. 2309.254. CRIMINAL PENALTY; LICENSING. (a) A person

commits an offense if the person:

(1) violates the licensing requirements of this

chapter;

(2) deals in used parts without a license required by

this chapter; or

(3) employs an individual who does not hold the

appropriate license required by this chapter.

(b) An offense under this section is a Class C misdemeanor.

[Sections 2309.255-2309.300 reserved for expansion]

SUBCHAPTER G. CONDUCTING BUSINESS

Sec. 2309.301. DUTIES ON ACQUISITION OF SALVAGE MOTOR

VEHICLE. (a) A used automotive parts recycler who acquires

ownership of a salvage motor vehicle shall obtain a properly

assigned title from the previous owner of the vehicle.

(b) A used automotive parts recycler who acquires ownership

of a motor vehicle, nonrepairable motor vehicle, or salvage motor

vehicle for the purpose of dismantling, scrapping, or destroying

the motor vehicle, shall, before the 61st day after the date of

acquiring the motor vehicle, submit to the Texas Department of

Motor Vehicles a report stating that the motor vehicle will be

dismantled, scrapped, or destroyed. The recycler shall:

(1) submit the report on a form prescribed by the Texas

Department of Motor Vehicles; and

(2) submit with the report a properly assigned

manufacturer's certificate of origin, regular certificate of

title, nonrepairable vehicle title, salvage vehicle title, other

ownership document, or comparable out-of-state ownership document

for the motor vehicle.

Texas Department of Motor Vehicles shall issue the used automotive

parts recycler a receipt for the manufacturer's certificate of

origin, regular certificate of title, nonrepairable vehicle title,

salvage vehicle title, other ownership document, or comparable

out-of-state ownership document.

(d) The recycler shall comply with Subchapter E, Chapter

501, Transportation Code.

Sec. 2309.302. RECORDS OF PURCHASES. A used automotive

parts recycler shall maintain a record of each motor vehicle,

salvage motor vehicle, nonrepairable motor vehicle, and used

automotive part purchased.

Sec. 2309.303. REGISTRATION OF NEW BUSINESS LOCATION.

Before moving a place of business, a used automotive parts recycler

must notify the department of the new location. The used automotive

parts recycler shall provide a storm water permit for the location

if a permit is required by the Texas Commission on Environmental

Quality.

[Sections 2309.304-2309.350 reserved for expansion]

SUBCHAPTER H. ADDITIONAL DUTIES OF USED AUTOMOTIVE PARTS RECYCLER

IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS

Sec. 2309.351. DEFINITIONS. In this subchapter:

(1) "Component part" means a major component part as

defined by Section 501.091, Transportation Code, or a minor

component part.

(2) "Interior component part" means a motor vehicle's

seat or radio.

(3) "Minor component part" means an interior component

part, a special accessory part, or a motor vehicle part that

displays or should display at least one of the following:

(A) a federal safety certificate;

(B) a motor number;

(D) a manufacturer's permanent vehicle

identification number or a derivative.

(4) "Special accessory part" means a motor vehicle's

tire, wheel, tailgate, or removable glass top.

Sec. 2309.352. REMOVAL OF LICENSE PLATES. Immediately on

receipt of a motor vehicle, a used automotive parts recycler shall:

(1) remove any unexpired license plates from the

vehicle; and

(2) place the license plates in a secure place until

destroyed by the used automotive parts recycler.

Sec. 2309.353. RECEIPT OF MOTOR VEHICLE. A used automotive

parts recycler may not take delivery of a motor vehicle unless the

recycler first obtains:

(1) a certificate of authority to dispose of the

vehicle, a sales receipt, or a transfer document for the vehicle

issued under Chapter 683, Transportation Code; or

(2) a certificate of title showing that there are no

liens on the vehicle or that all recorded liens have been released.

Sec. 2309.354. RECORD OF PURCHASE; INVENTORY OF PARTS.

(a) A used automotive parts recycler shall keep an accurate and

legible inventory of each used component part purchased by or

delivered to the recycler. The inventory must contain a record of

each part that includes:

(1) the date of purchase or delivery;

(2) the driver's license number of the seller and a

legible photocopy of the seller's driver's license;

(3) the license plate number of the motor vehicle in

which the part was delivered;

(4) a complete description of the part and, if

applicable, the make, model, color, and size of the part; and

(5) the vehicle identification number of the motor

vehicle from which the part was removed.

(b) As an alternative to the information required by

Subsection (a), a used automotive parts recycler may record:

(1) the name of the person who sold the part or the

motor vehicle from which the part was obtained; and

(2) the Texas certificate of inventory number or the

federal taxpayer identification number of the person.

required by Subsection (a) and shall make the form available to used

automotive parts recyclers.

(d) This section does not apply to:

(1) an interior component part or special accessory

part from a motor vehicle more than 10 years old; or

(2) a part delivered to a used automotive parts

recycler by a commercial freight line, commercial carrier, or

licensed used automotive parts recycler.

Sec. 2309.355. ASSIGNMENT OF INVENTORY NUMBER. (a) A used

automotive parts recycler shall:

(1) assign a unique inventory number to each

transaction in which the recycler purchases or takes delivery of a

component part;

(2) attach that inventory number to each component

part the recycler obtains in the transaction; and

(3) retain each component part in its original

condition on the business premises of the recycler for at least

three calendar days, excluding Sundays, after the date the recycler

obtains the part.

(b) An inventory number attached to a component part under

Subsection (a) may not be removed while the part remains in the

inventory of the used automotive parts recycler.

automotive parts recycler of a nonoperational engine,

transmission, or rear axle assembly from another used automotive

parts recycler or an automotive-related business.

Sec. 2309.356. MAINTENANCE OF RECORDS. A used automotive

parts recycler shall keep a record required under this subchapter

on a form prescribed by the department or the Texas Department of

Motor Vehicles. The recycler shall maintain copies of each record

required under this subchapter until the first anniversary of the

purchase date of the item for which the record is maintained.

Sec. 2309.357. SURRENDER OF CERTAIN DOCUMENTS OR LICENSE

PLATES. (a) On demand, a used automotive parts recycler shall

surrender to the Texas Department of Motor Vehicles for

cancellation a certificate of title or authority, sales receipt or

transfer document, license plate, or inventory list that the

recycler is required to possess or maintain.

(b) The Texas Department of Motor Vehicles shall provide a

signed receipt for a surrendered certificate of title.

Sec. 2309.358. RESALE OF SALVAGE MOTOR VEHICLES OR

NONREPAIRABLE MOTOR VEHICLES. (a) A used automotive parts

recycler may sell salvage or nonrepairable vehicles only at:

(1) a used automotive parts recycling facility;

(2) a salvage pool operator's facility; or

(3) a metal recycling facility.

(b) Before reselling a salvage motor vehicle or

nonrepairable motor vehicle at a used automotive recycling

facility, a used automotive parts recycler must post notice on the

vehicle of the type of title appropriate to the vehicle.

Sec. 2309.359. INSPECTION OF RECORDS. (a) A peace officer

at any reasonable time may inspect a record required to be

maintained under this subchapter, including an inventory record.

(b) On demand by a peace officer, a used automotive parts

recycler shall provide to the officer a copy of a record required to

be maintained under this subchapter.

premises of a used automotive parts recycler at any reasonable time

to verify, check, or audit the records required to be maintained

under this subchapter.

(d) A used automotive parts recycler or an employee of the

recycler shall allow and may not interfere with a peace officer's

inspection of the recycler's inventory, premises, or required

inventory records.

[Sections 2309.360-2309.400 reserved for expansion]

SUBCHAPTER I. MOTOR VEHICLE SALVAGE YARDS IN CERTAIN COUNTIES

Sec. 2309.401. APPLICABILITY OF SUBCHAPTER. This

subchapter applies only to a used automotive parts facility located

in a county with a population of 2.8 million or more.

Sec. 2309.402. LIMITS ON OPERATION OF HEAVY MACHINERY.

(a) A used automotive parts recycler may not operate heavy

machinery in a used automotive parts recycling facility between the

hours of 7 p.m. of one day and 7 a.m. of the following day.

(b) This section does not apply to conduct necessary to a

sale or purchase by the recycler.

SECTION 18.08. Section 501.091, Transportation Code, is

amended by amending Subdivision (17) and adding Subdivision (20) to

read as follows:

(17) "Salvage vehicle dealer" means a person engaged

in this state in the business of acquiring, selling, [~~dismantling,~~]

repairing, rebuilding, reconstructing, or otherwise dealing in

nonrepairable motor vehicles, salvage motor vehicles, or, if

incidental to a salvage motor vehicle dealer's primary business,

used automotive parts. The term does not include a person who

casually repairs, rebuilds, or reconstructs fewer than five [~~three~~]

salvage motor vehicles in the same calendar year or, except as

provided by Paragraph (C), a used automotive parts recycler. The

term includes a person engaged in the business of:

(A) a salvage vehicle dealer, regardless of

whether the person holds a license issued by the department to

engage in that business;

(B) dealing in nonrepairable motor vehicles or

salvage motor vehicles[~~, regardless of whether the person deals in~~

~~used parts~~]; or

of repaired, rebuilt, or reconstructed nonrepairable motor

vehicles or salvage motor vehicles is more than an incidental part

of the used automotive parts recycler's business [~~dealing in used~~

~~parts regardless of whether the person deals in nonrepairable motor~~

~~vehicles or salvage motor vehicles~~].

(20) "Used parts dealer" and "used automotive parts

recycler" have the meaning assigned to "used automotive parts

recycler" by Section 2309.002, Occupations Code.

SECTION 18.09. Section 501.092(d), Transportation Code, is

amended to read as follows:

(d) An insurance company may sell a motor vehicle to which

this section applies, or assign a salvage vehicle title or a

nonrepairable vehicle title for the motor vehicle, only to a

salvage vehicle dealer, an out-of-state buyer, a buyer in a casual

sale at auction, [or] a metal recycler, or a used automotive parts

recycler. If the motor vehicle is not a salvage motor vehicle or a

nonrepairable motor vehicle, the insurance company is not required

to surrender the regular certificate of title for the vehicle or to

be issued a salvage vehicle title or a nonrepairable vehicle title

for the motor vehicle.

SECTION 18.10. Sections 501.095(a) and (b), Transportation

Code, are amended to read as follows:

(a) If the department has not issued a nonrepairable vehicle

title or salvage vehicle title for the motor vehicle and an

out-of-state ownership document for the motor vehicle has not been

issued by another state or jurisdiction, a business or governmental

entity described by Subdivisions (1)-(3) may sell, transfer, or

release a nonrepairable motor vehicle or salvage motor vehicle only

to a person who is:

(1) a licensed salvage vehicle dealer, a used

automotive parts recycler under Chapter 2309, Occupations Code, or

a metal recycler under Chapter 2302, Occupations Code;

(2) an insurance company that has paid a claim on the

nonrepairable or salvage motor vehicle;

(3) a governmental entity; or

(4) an out-of-state buyer.

(b) A person, other than a salvage vehicle dealer, a used

automotive parts recycler, or an insurance company licensed to do

business in this state, who acquired ownership of a nonrepairable

or salvage motor vehicle that has not been issued a nonrepairable

vehicle title, salvage vehicle title, or a comparable ownership

document issued by another state or jurisdiction shall, before

selling the motor vehicle, surrender the properly assigned

certificate of title for the motor vehicle to the department and

apply to the department for:

(1) a nonrepairable vehicle title if the vehicle is a

nonrepairable motor vehicle; or

(2) a salvage vehicle title if the vehicle is a salvage

motor vehicle.

SECTION 18.11. Section 501.105, Transportation Code, is

amended to read as follows:

Sec. 501.105. RETENTION OF RECORDS RELATING TO CERTAIN

CASUAL SALES. Each licensed salvage vehicle dealer, used

automotive parts recycler, or insurance company that sells a

nonrepairable motor vehicle or a salvage motor vehicle at a casual

sale shall keep on the business premises of the dealer or the

insurance company a list of all casual sales made during the

preceding 36-month period that contains:

(1) the date of the sale;

(2) the name of the purchaser;

(3) the name of the jurisdiction that issued the

identification document provided by the purchaser, as shown on the

document; and

(4) the vehicle identification number.

SECTION 18.12. Section 2302.253, Occupations Code, is

repealed.

SECTION 18.13. Not later than January 1, 2010, the Texas

Commission of Licensing and Regulation shall adopt rules under

Section 2309.102, Occupations Code, as added by this article.

SECTION 18.14. Sections 2309.151 and 2309.154, Occupations

Code, as added by this article, and Subchapter F, Chapter 2309,

Occupations Code, as added by this article, take effect September

1, 2010.

ARTICLE 19. TRANS-TEXAS CORRIDOR

SECTION 19.01. Section 11.11(j), Tax Code, is amended to

read as follows:

(j) For purposes of this section, any portion of a facility

owned by the Texas Department of Transportation that is [~~part of the~~

~~Trans-Texas Corridor, is~~] a rail facility or system[,] or is a

highway in the state highway system, and that is licensed or leased

to a private entity by that department under Chapter 91 or[,] 223,

[~~or 227,~~] Transportation Code, is public property used for a public

purpose if the rail facility or system, highway, or facility is

operated by the private entity to provide transportation or utility

services. Any part of a facility, rail facility or system, or state

highway that is licensed or leased to a private entity for a

commercial purpose is not exempt from taxation.

SECTION 19.02. Section 25.06(c), Tax Code, is amended to

read as follows:

(1) any portion of a facility owned by the Texas

Department of Transportation that is [~~part of the Trans-Texas~~

~~Corridor, is~~] a rail facility or system[,] or is a highway in the

state highway system and that is licensed or leased to a private

entity by that department under Chapter 91[~~, 227,~~] or 361,

Transportation Code; or

(2) a leasehold or other possessory interest granted

by the Texas Department of Transportation in a facility owned by

that department that is [~~part of the Trans-Texas Corridor, is~~] a

rail facility or system[,] or is a highway in the state highway

system.

SECTION 19.03. Section 25.07(c), Tax Code, is amended to

read as follows:

(1) any portion of a facility owned by the Texas

Department of Transportation that is [~~part of the Trans-Texas~~

~~Corridor, is~~] a rail facility or system[,] or is a highway in the

state highway system and that is licensed or leased to a private

entity by that department under Chapter 91[~~, 227,~~] or 361,

Transportation Code; or

(2) a leasehold or other possessory interest granted

by the Texas Department of Transportation in a facility owned by

that department that is [~~part of the Trans-Texas Corridor, is~~] a

rail facility or system[,] or is a highway in the state highway

system.

SECTION 19.04. Sections 201.616(a) and (b), Transportation

Code, are amended to read as follows:

(a) Not later than December 1 of each year, the department

shall submit a report to the legislature that details:

(1) the expenditures made by the department in the

preceding state fiscal year in connection with:

(A) the unified transportation program of the

department;

(B) turnpike projects and toll roads of the

department; and

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

[~~and~~

[~~(E)~~ ~~non-highway facilities on the Trans-Texas~~

~~Corridor if those expenditures are subject to Section 227.062(c);~~]

(2) the amount of bonds or other public securities

issued for transportation projects; and

(3) the direction of money by the department to a

regional mobility authority in this state.

(b) The report must break down information under Subsection

(a)(1)(A) by program category and department district. The report

must break down information under Subsections (a)(1)(B) and[,]

(C)[~~, (D), and (E)~~] and Subsection (a)(3) by department district.

The report must break down information under Subsection (a)(2) by

department district and type of project.

SECTION 19.05. Section 202.112(a), Transportation Code, is

amended to read as follows:

(a) The commission may purchase an option to acquire

property for possible use in or in connection with a transportation

facility[~~, including a facility as defined by Section 227.001,~~]

before a final decision has been made as to whether the

transportation facility will be located on that property.

SECTION 19.06. Section 222.003(e), Transportation Code, is

amended to read as follows:

(e) The proceeds of bonds and other public securities issued

under this section may not be used for any purpose other than any

costs related to the bonds and other public securities and the

purposes for which revenues are dedicated under Section 7-a,

Article VIII, Texas Constitution. [~~The proceeds of bonds and other~~

~~public securities issued under this section may not be used for the~~

~~construction of a state highway or other facility on the~~

~~Trans-Texas Corridor. For purposes of this section, the~~

~~"Trans-Texas Corridor" means the statewide system of multimodal~~

~~facilities under the jurisdiction of the department that is~~

~~designated by the commission, notwithstanding the name given to~~

~~that corridor.~~]

SECTION 19.07. Section 223.201(a), Transportation Code, is

amended to read as follows:

(a) Subject to Section 223.202, the department may enter

into a comprehensive development agreement with a private entity to

design, develop, finance, construct, maintain, repair, operate,

extend, or expand a:

(1) toll project;

(2) [~~facility or a combination of facilities on the~~

~~Trans-Texas Corridor;~~

[~~(3)~~] state highway improvement project that includes

both tolled and nontolled lanes and may include nontolled

appurtenant facilities;

(3) [~~(4)~~] state highway improvement project in which

the private entity has an interest in the project; or

(4) [~~(5)~~] state highway improvement project financed

wholly or partly with the proceeds of private activity bonds, as

defined by Section 141(a), Internal Revenue Code of 1986.

SECTION 19.08. Section 223.206(d), Transportation Code, is

amended to read as follows:

(d) The department may not enter into a comprehensive

development agreement with a private entity under this subchapter

[~~or Section 227.023~~] that provides for the lease, license, or other

use of rights-of-way or related property by the private entity for

the purpose of constructing, operating, or maintaining an ancillary

facility that is used for commercial purposes.

SECTION 19.09. Sections 223.208(c), (e), and (f),

Transportation Code, are amended to read as follows:

development agreement under this subchapter [~~or under Section~~

~~227.023(c)~~] with a private participant only if the project is

identified in the department's unified transportation program or is

located on a transportation corridor identified in the statewide

transportation plan.

(e) Notwithstanding anything in Section 201.112 or other

law to the contrary, and subject to compliance with the dispute

resolution procedures set out in the comprehensive development

agreement, an obligation of the commission or the department under

a comprehensive development agreement entered into under this

subchapter [~~or Section 227.023(c)~~] to make or secure payments to a