81R23538 JTS-F

By: Pickett, McClendon, Harper-Brown, et al. H.B. No. 2589

Substitute the following for H.B. No. 2589:

By: McClendon C.S.H.B. No. 2589

A BILL TO BE ENTITLED

AN ACT

relating to transportation planning and funding allocations.

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

SECTION 1. Sections 201.051(a) and (b), Transportation Code, are amended to read as follows:

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

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

(2) one is appointed by the lieutenant governor; and

(3) one is appointed by the governor with the advice and consent of the senate from a list provided by the speaker of the house of representatives.

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

SECTION 2. Sections 201.105(a) and (b), Transportation Code, are amended to read as follows:

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

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

SECTION 3. Chapter 201, Transportation Code, is amended by adding Subchapter F-1 to read as follows:

SUBCHAPTER F-1. OVERSIGHT

Sec. 201.451. LEGISLATIVE OVERSIGHT COMMITTEE ON TRANSPORTATION. (a) In this section, "committee" means the legislative oversight committee on transportation.

(b) The committee is composed of 10 members as follows:

(1) the chair of the Senate Committee on Finance;

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

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

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

(5) three additional members of the senate appointed by the lieutenant governor; and

(6) three additional members of the house of representatives appointed by the speaker of the house of representatives.

(c) The committee shall monitor:

(1) the implementation of:

(A) the statewide transportation program and budget; and

(B) the transportation allocation funding formulas;

(2) the transportation transparency program;

(3) the development of performance measures under Section 201.675(a); and

(4) other tasks assigned by the lieutenant governor and the speaker of the house of representatives.

(d) This section expires August 31, 2013.

Sec. 201.452. INSPECTOR GENERAL. (a) The commission shall appoint an inspector general who reports to the commission.

(b) The inspector general shall:

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

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

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

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

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

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

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

(c) Notwithstanding Subsection (a), the legislative oversight committee on transportation under Section 201.451 shall appoint the inspector general under this section. If appointed under this subsection, the inspector general is subject to removal for good cause by the commission. If the supreme court of this state determines that an appointment under this subsection violates Section 1, Article II, or Section 12, Article IV, Texas Constitution, the commission shall appoint the inspector general from a list provided by the legislative oversight committee on transportation. This subsection expires August 31, 2013.

Sec. 201.453. COOPERATION AND COORDINATION WITH STATE AUDITOR. (a) An inspector general's review does not take precedence over the state auditor's review.

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

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

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

Sec. 201.454. FINAL REVIEW REPORTS. (a) The inspector general shall prepare a final report for each review conducted under Section 201.452. The final report must include:

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

(2) a description of any findings in connection with a review conducted under Section 201.452.

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

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

(1) the commission and the executive director;

(2) the governor;

(3) the lieutenant governor;

(4) the speaker of the house of representatives;

(5) the state auditor; and

(6) the appropriate legislative oversight committees.

SECTION 4. Section 201.601, Transportation Code, is amended to read as follows:

Sec. 201.601. STATEWIDE TRANSPORTATION PROGRAM AND BUDGET [PLAN]. [(a)] The department shall develop a statewide transportation program and budget under Subchapter H-1 [plan that contains all modes of transportation, including:

[(1) highways and turnpikes;

[(2) aviation;

[(3) mass transportation;

[(4) railroads and high-speed railroads; and

[(5) water traffic].

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

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

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

SECTION 5. Chapter 201, Transportation Code, is amended by adding Subchapter H-1 to read as follows:

SUBCHAPTER H-1. STATEWIDE TRANSPORTATION PLANNING AND FUNDING

ALLOCATION

Sec. 201.651. DEFINITIONS. In this subchapter:

(1) "Planning organization" means:

(A) a metropolitan planning organization; or

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

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

(A) planning;

(B) design;

(C) environmental assessment;

(D) right-of-way acquisition;

(E) construction;

(F) operations;

(G) maintenance;

(H) overruns; and

(I) change orders.

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

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

(A) aviation;

(B) high-speed rail;

(C) highways;

(D) toll roads;

(E) mass transportation;

(F) railroads; and

(G) water traffic.

(5) "Transportation project" means:

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

(i) bridge;

(ii) highway;

(iii) toll road or toll road system; or

(iv) railroad;

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

(C) an air quality improvement initiative;

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

(E) mass transportation.

Sec. 201.652. PURPOSE. It is in the interest of this state to:

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

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

Sec. 201.653. CASH FLOW FORECAST. (a) On September 1 of each odd-numbered year, the department's chief financial officer shall issue a cash flow forecast for each method and category of funding that covers a period of not less than the 10 years following the date the forecast is issued.

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

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

Sec. 201.654. ALLOCATION AND DEPOSIT OF FUNDING. (a) The commission shall use the cash flow forecast under Section 201.653 to allocate funding to the planning organizations in accordance with Section 201.666.

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

Sec. 201.655. PLANNING ORGANIZATION 10-YEAR PLAN. (a) Each planning organization shall develop a 10-year transportation plan for the use of the funding allocated to the region.

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

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

Sec. 201.656. PLANNING ORGANIZATION PROJECT SELECTION AND PRIORITIZATION. (a) Each metropolitan planning organization shall, for the area in its boundaries, select projects and order them in priority.

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

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

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

Sec. 201.657. PROCESS FOR DEVELOPING PLANS AND PROGRAMS. The process for developing the plans and programs under this subchapter must:

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

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

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

Sec. 201.658. PLANNING ORGANIZATION LONG-RANGE PLAN. (a) A planning organization may also prepare and update periodically a long-range transportation plan for its region.

(b) The first 10 years of the long-range plan shall be identical to the plan developed under Section 201.655.

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

(d) A planning organization shall make each of its long-range transportation plans readily available for public review and shall deliver each plan to the commission at the times and in the manner required by the commission.

Sec. 201.659. PARTICIPATION IN PLAN DEVELOPMENT. (a) In developing a plan under this subchapter, a planning organization shall seek the opinions and assistance of the appropriate transportation officials.

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

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

Sec. 201.660. PLANS TO BE FINANCIALLY CONSTRAINED. A plan under this subchapter must be financially constrained and identify transportation projects and projects for any other mode of transportation not included in Section 201.651(7).

Sec. 201.661. PLAN ADJUSTMENTS. The commission shall adopt rules to allow a planning organization to move projects forward or delay projects if there are additional or less funds available than identified in the cash flow forecast under Section 201.653. Adjustments to the plan may not be made more than semiannually, unless there are substantial increases or decreases in available funding.

Sec. 201.662. EVALUATION COMPONENT OF PLAN. A plan under this subchapter shall include a component, published annually, that describes the evaluation of transportation improvements based on performance measures, such as indices that measure delay reductions or travel time improvements. The planning organization shall consider the performance measures in selecting transportation improvements.

Sec. 201.663. DEPARTMENT'S STATEWIDE TRANSPORTATION PROGRAM AND BUDGET. (a) The department shall use the planning organizations' project lists to create the statewide transportation program and budget. The statewide transportation program and budget shall include at least:

(1) the department's operating budget;

(2) the official cash flow forecast under Section 201.653;

(3) the regions' allocations of funds;

(4) the projects selected by the planning organization under Section 201.656; and

(5) the work plan required by Section 201.673.

(b) The statewide transportation program and budget shall be complete and adopted not later than June 30 of each even-numbered year. The commission shall adopt rules to create a process for planning organizations to amend the plan from July 1 of each even-numbered year until August 31 of the following year. Amendments to the plan may only reorder projects identified in the same region subject to Section 201.661.

Sec. 201.664. LENDING FUNDS BETWEEN PLANNING ORGANIZATIONS. (a) The commission may adopt rules to allow a planning organization to loan funds to another planning organization at the lending organization's discretion. Funds may be loaned under this section only to avoid the lapsing of federal appropriations authority.

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

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

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

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

Sec. 201.665. ORGANIZATION OF STATEWIDE TRANSPORTATION PROGRAM AND BUDGET. (a) The statewide transportation program and budget shall be organized first by region, then by mode of transportation, followed by the year of the project.

(b) The summary tables of the statewide transportation program and budget shall summarize the statewide project cost by mode and then by year and shall be made available online in accordance with Section 201.672.

Sec. 201.666. TRANSPORTATION ALLOCATION FUNDING FORMULA. (a) The commission shall adopt rules that create funding formulas for transportation projects. In developing the formulas the commission shall consider the input of planning organizations, transportation officials, and county and municipal officials.

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

(1) centerline miles;

(2) level of congestion;

(3) percentage of population below federal poverty level;

(4) population;

(5) safety; and

(6) vehicle miles traveled.

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

Sec. 201.667. USE OF ALLOCATED FUNDS. The funds allocated to a planning organization under Section 201.666 may be used to:

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

(2) pay debt service;

(3) repay money borrowed from another region; or

(4) fund a planning organization's operations under Section 201.670.

Sec. 201.668. SURPLUS REVENUE AND CONTRACT PAYMENTS NOT ALLOCATED BY FORMULA. (a) Revenue from Sections 228.005, 228.0055, and 228.006 shall be allocated in accordance with Subchapter B, Chapter 228.

(b) Funds associated with toll projects under Chapter 228 are not considered revenue allocated by a formula under Section 201.666.

Sec. 201.669. ENCUMBRANCE OF ALLOCATED FUNDS. (a) The allocation of funds shall be encumbered in an amount equal to the engineer's estimate of the project cost and reduced by the actual project cost at the time payments associated with the project are paid.

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

Sec. 201.670. USE OF ALLOCATED FUNDS FOR OPERATING COSTS OF PLANNING ORGANIZATION. (a) A metropolitan planning organization operating in a transportation management area as defined by 23 U.S.C. Section 134(k) may use the allocated funds to pay for the operations costs of the planning organization. The amount that may be allocated to pay for the operations of the planning organization may not exceed the lesser of $10 million or 10 percent of the planning organization's total funds.

(b) A metropolitan planning organization operating in an area that is not a transportation management area may use the allocated funds to pay for the operations costs of the planning organization. The amount that may be allocated to pay for the operations of the planning organization may not exceed the lesser of $3 million or 10 percent of the planning organization's total funds.

Sec. 201.671. COMMISSION EMERGENCY AND ECONOMIC DEVELOPMENT FUNDS. (a) Notwithstanding Section 201.654(b), the commission may annually set aside an amount of funds not to exceed the lesser of 10 percent of the total funds allocated to all districts or $250 million for the purpose of addressing emergencies or economic development opportunities that require transportation infrastructure. The funds may be carried forward from year to year but may not accumulate to more than $1 billion.

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

(c) The funds shall be encumbered in an amount equal to the engineer's estimate of the project cost and reduced by the actual project cost at the time payments associated with the project are paid.

(d) The commission may use funds set aside under this section for emergency and economic development opportunities that require transportation infrastructure in the same manner a planning organization may use money allocated under Section 201.667.

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

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

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

Sec. 201.672. TRANSPORTATION TRANSPARENCY PROGRAM FOR PROJECTS AND ALLOCATIONS. (a) The department shall develop an interactive web-based system for the tracking of planning organization allocations and projects. The planning organizations shall be granted access to the system through a secure site to input information regarding projects and the associated project costs.

(b) The system shall provide the planning organization information regarding the organization's allocation of funding for the region and the federal and state requirements for each source of funding.

(c) The department shall assign a project number to each project that correlates to the region in which the project is located.

(d) The department shall develop standardized reports to assist district engineers and executive staff in tracking the efficiency of project development and to ensure the prudent use of funds by the planning organization.

(e) The system shall be linked to a publicly accessible website that enables the tracking of project development and the expenditure of funds. For each project the website must contain a map identifying the location of the project and a report that identifies the project, a general scope of work, the allocation of funds associated with the project, and a current report of expenditures.

(f) The website shall include mapping of projects by district to allow easy identification of projects in each district.

Sec. 201.673. DEPARTMENT 10-YEAR BUSINESS WORK PLAN. On completion of the 10-year transportation plan in Section 201.655, the department shall use the lists of projects to develop a proposed 10-year business work plan. The work plan shall be adopted not later than August 31 of each even-numbered year and include:

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

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

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

Sec. 201.674. FINALIZED BIENNIAL PROJECT PLAN. In addition to the plan required by Section 201.673 and other provisions of this chapter, not later than August 31 of each odd-numbered year, the department shall finalize a project plan for the period that begins on September 1 of that year and ends on August 31 of the following odd-numbered year. The plan must include:

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

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

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

(4) a letting plan.

Sec. 201.675. PERFORMANCE MEASURES FOR BIENNIAL PROJECT PLAN. (a) The department shall develop a set of performance measures for the plan under Section 201.674 intended to measure:

(1) the execution of the work program;

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

(3) the preservation of the system investment;

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

(5) safety initiatives; and

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

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

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

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

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

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

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

(6) the percentage of parcels acquired through negotiation;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(c) The department shall consult with the legislative oversight committee on transportation under Section 201.451 in developing the performance measures under Subsection (a). This subsection expires August 31, 2013.

Sec. 201.676. 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 201.674 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 201.675(a), statewide and by department district, and a status report on each major project under development.

SECTION 6. Section 222.034(b), Transportation Code, is amended to read as follows:

(b) The commission may vary from the distribution procedure provided by Subsection (a) if it issues a ruling or minute order identifying the variance and providing a particular justification for the variance. If the commission intends to vary from the distribution procedure, it must allocate the funding in accordance with a formula adopted under Section 201.666.

SECTION 7. Subchapter D, Chapter 472, Transportation Code, is amended by adding Sections 472.0311 and 472.0312 to read as follows:

Sec. 472.0311. OPEN MEETINGS. A policy board is subject to Chapter 551, Government Code.

Sec. 472.0312. BOARD MEMBERSHIP AND VOTING REQUIREMENTS; ELIGIBILITY FOR STATE ALLOCATION OF FUNDING. (a) For a metropolitan planning organization to be eligible to receive funds from this state for transportation projects under Section 201.666:

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

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

(b) A metropolitan planning organization that is not eligible under Subsection (a) may redesignate the board in compliance with the redesignation procedures in 23 U.S.C. Section 134 to become eligible to receive an allocation of funds under Section 201.666.

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

SECTION 8. Section 472.032, Transportation Code, is amended to read as follows:

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

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

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

[(2) must be appointed in writing; and

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

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

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

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

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

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

[(4) a locally elected official.]

SECTION 9. (a) The terms of the members of the Texas Transportation Commission serving on the effective date of this Act expire September 1, 2009, and members shall be appointed in accordance with Section 201.051, Transportation Code, as amended by this Act, for terms to begin September 1, 2009.

(b) As soon as practicable after appointment, members appointed under Subsection (a) of this section shall draw lots to determine whose terms will expire February 1, 2011, whose terms will expire February 1, 2013, and whose terms will expire February 1, 2015.

SECTION 10. The Texas Transportation Commission or the legislative oversight committee on transportation, as applicable, shall appoint an inspector general as required by Section 201.452, Transportation Code, as added by this Act, not later than December 1, 2009.

SECTION 11. This Act takes effect immediately if it 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 Act takes effect September 1, 2009.