By: Pickett H.B. No. 2589
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to transportation planning and the creation and membership
  of planning organizations and funding allocations for
  transportation projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sec. 201.105(a) and (b), Transportation Code are
  amended to read as follows:
         Sec. 201.105.  DEPARTMENT DISTRICTS. (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 district boundaries along the boundaries
  of the councils of government and consider all costs and benefits,
  including highway activity in determining [and] the number of
  employees required for the districts [proposed district].
         SECTION 2.  Subchapter H, Chapter 201, Transportation Code,
  is amended by adding Section 201.6001 to read as follows:
         Sec. 201.6001.  DEFINITIONS.  (a)  In this Subchapter:
               (1)  "Local government" means a county or municipality.
               (2)  "Planning organization" means a metropolitan
  planning organization, a rural planning organization, or the
  department district.
               (3)  "Project cost" means the total cost of a
  transportation project including all costs associated with the
  following:
                     (A)  planning;
                     (B)  design;
                     (C)  environmental assessment;
                     (D)  right-of-way acquisition;
                     (E)  construction;
                     (F)  operations;
                     (G)  maintenance;
                     (H)  overruns; and
                     (I)  change orders.
               (4)  "Region" means the area of the metropolitan
  planning organization or the area outside the boundaries of the
  metropolitan planning organization that make up the remainder of
  the council of government.
               (5)  "Rural planning organization" means a planning
  organization created in accordance with Section 201.6002.
               (6)  "Transportation official" means officials from
  other state agencies and political subdivisions that have
  responsibility for the following modes of transportation:
                     (A)  aviation;
                     (B)  high-speed railroads;
                     (C)  highways;
                     (D)  toll roads;
                     (E)  mass transportation;
                     (F)  railroads; and
                     (G)  water traffic
               (7)  "Transportation project" means:
                     (A)  the planning, right-of-way acquisition,
  expansion, improvement, addition, routine maintenance, contracted
  routine maintenance, or contract maintenance of a:
                           (i)  bridge
                           (ii)  highway;
                           (iii)  toll road or toll road system; or
                           (iv)  railroad.
                     (B)  projects which enhance the safety of a
  roadway to the traveling public;
                     (C)  an air quality improvement initiative;
                     (D)  an enhancement project in accordance with 23
  U.S.C. 133; or
                     (E)  mass transportation.
         SECTION 3.  Subchapter H, Chapter 201, Transportation Code,
  is amended by adding Section 201.6002 to read as follows:
         Sec. 201.6002.  RURAL PLANNING ORGANIZATIONS.  (a)  To carry
  out the transportation planning process required by this section, a
  rural planning organization may be created that covers all of the
  area that is within the boundaries of a council of government and
  outside the boundaries of a metropolitan planning organization if
  the units of local government that together represent at least 75
  percent of the affected population agree to the creation of the
  organization.
         (b)  A rural planning organization is governed by a board of
  directors composed of local elected officials and the district
  engineer of the department district.
         (c)  In order for a rural planning organization to be
  eligible to receive funding from the state for transportation
  projects under Section 201.6012, Transportation Code, the make up
  of the voting members of the board must include at least 50 percent
  elected officials, which are elected within the boundaries of the
  rural planning organization.
         (d)  As soon as practicable after a rural planning
  organization is created, the organization shall send notice of its
  creation to the commission.
         (e)  The department may use money in the state highway fund
  to fund the operations of a rural planning organization subject to
  the limitation set forth in Section 201.6012(h).
         (f)  A rural planning organization shall develop
  transportation plans and programs for its service area in
  accordance with Section 201.601.
         (g)  A rural planning organization may provide to the
  commission recommendations concerning the selection of
  transportation projects, systems, or programs to be undertaken
  within the boundaries of the rural planning organization.
         (h)  In this section "elected official" is defined as mayor,
  county judge, city councilmember, county commissioner, state
  representative, or state senator.
         SECTION 4.  Section 201.601, Transportation Code, is amended
  to read as follows:
         Sec. 201.601.  STATEWIDE TRANSPORTATION PROGRAM AND BUDGET
  [PLAN].  (a)  On September first of every odd numbered year
  following the legislative session, the Chief Financial Officer
  shall issue a cash flow forecast for each method and category of
  funding which covers a period to include the next ten years. The
  forecast shall identify all sources of funding available for
  transportation projects including bond proceeds.  The first two
  years of the forecast shall be based on the appropriation of funds
  in the general appropriations act for the department.
         (b)  The Commission shall utilize the cash forecast to
  allocate funding to the department districts in accordance with
  Section 201.6012.  The funds shall be deposited into a subaccount
  within the State Highway Fund.  The balance of the subaccount shall
  be carried forward from year to year for the benefit of the region.
         (c)  The planning organization shall develop a ten year
  transportation plan utilizing the funding allocated to the region.  
  The first four years of the plan shall be developed in order to
  fulfill the transportation improvement plan requirements of 23
  U.S.C. 135.  The department shall compile the region's project
  selections to develop the statewide transportation plan in
  accordance with 23 U.S.C. 135.  If there is a Metropolitan Planning
  Organization within the boundary of the district, it shall select
  projects and order them in priority.  In the area outside the
  boundaries of the Metropolitan Planning Organization's the rural
  planning organization shall select projects and order them in
  priority.  If the units of local government have not created a rural
  planning organization in accordance with Section 201.6002, the
  district shall select projects with the input from county, city and
  transportation officials and order them in priority.  If the
  district selects the projects, the district shall submit them to
  the commission for final approval.
         (d)  The process for developing the plans and programs must
  provide for consideration of all modes of transportation and must
  be continuing, cooperative, and comprehensive to the degree
  appropriate, based on the complexity of the transportation problems
  to be addressed.
         (e)  A planning organization may also prepare and update
  periodically a long-range transportation plan for its service area.  
  The first ten years of the long-range plan shall be identical to the
  plan developed in Subsection (c).  Before approving a long-range
  transportation plan, a planning organization shall provide to
  residents within its boundaries, affected public agencies, and
  other interested parties a reasonable opportunity to comment on the
  long-range transportation plan.  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 established by the commission.
         [(a)     The department shall develop a statewide
  transportation 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.]
         (f[b])  In developing the plan, the planning organization
  [department] shall seek opinions and assistance from
  transportation officials [other state agencies and political
  subdivisions that have responsibility for the modes of
  transportation listed by Subsection (a)].
         (g)  As appropriate, the department and [such] a planning
  organization [an agency or political subdivision shall] may enter
  into a memorandum of understanding relating to the planning of
  transportation services.
         (h)  The department shall review the plans of the planning
  organization to ensure they are in compliance with the requirements
  of 23 U.S.C. 135, and provide assistance to the planning
  organization to correct deficiencies.
         (i[c])  The plan shall be [must include a component that is
  not] financially constrained and identify [identifies] all
  transportation projects and projects for any other mode of
  transportation not included in Section 201.6001(7). [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)].
         (j)  The commission shall adopt rules allowing the regions to
  move projects forward or delay projects in the event that there are
  additional or fewer funds available than identified in the cash
  forecast in subsection (a).  Adjustments to the plan should not be
  made more than semiannually, unless there are substantial increases
  or decreases in available funding.
         (k[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
  planning organization [department] shall consider the performance
  measures in selecting transportation improvements.
         (l)  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 the:
               (1)  department's operating budget,
               (2)  official cash forecast from Subsection (a),
               (3)  regions' allocations of funds,
               (4)  projects selected by the planning organization in
  subsection (c), and
               (5)  work plan, as required by Section 201.621.
         (m)  The Statewide Transportation Program and Budget shall
  be complete and adopted by June 30 of every even numbered year. The
  commission shall adopt rules to create a process for planning
  organizations to amend the plan from July 1 of every even numbered
  year until August 31 of the following odd numbered year.  Amendments
  to the plan may only reorder projects identified in the same region
  subject to Section 201.601(j).
         (n)  The commission may adopt rules which allow a region to
  loan funds to another region at the lending region's discretion in
  order to avoid the lapsing of federal appropriations authority.  
  The rules must allow the lending region to have a senior position
  with regards to any future allocated funds of the borrowing region.  
  The lending region may not charge interest on funds borrowed from
  another region 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 post this rate for all districts.  A lending region
  shall not be penalized in their performance measures if they
  successfully negotiate a loan with another region.
         (o)  The Statewide Transportation Program and Budget shall
  be organized first by region, then by mode of transportation
  followed by the year of the project.  The summary tables of the
  report shall summarize the statewide project cost by mode and then
  by year.  The report shall be made available online in accordance
  with Section 201.6013.
         SECTION 5.  Subchapter H, Chapter 201, Transportation Code,
  is amended by adding Sections 201.6012, 201.6013, and 201.6014 to
  read as follows:
         Sec. 201.6012  TRANSPORTION ALLOCATION FUNDING FORMULA.  (a)
  The Commission shall adopt rules creating funding formulas for
  transportation projects.  In developing the formulas the commission
  shall include the input of planning organizations, transportation
  officials and local government officials.
         (b)  All funds received by the department for highways, toll
  roads, or toll road systems which provide the state or the
  department with discretion shall be allocated by formula to each
  region which is based on performance measures and includes at least
  the following criteria:
               (1)  center lane miles,
               (2)  level of congestion,
               (3)  percentage of population below federal poverty
  level,
               (4)  population,
               (5)  safety, and
               (5)  vehicle miles traveled.
         (c)  The Commission shall allocate to the regions funding for
  the project cost 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.
         (d)  The funds allocated to the region in this section may be
  used to:
               (1)  fund the project cost, 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 monies borrowed from another region; or
               (4)  fund planning organizations' operations in
  accordance with Sections 201.6012(f), 201.6012(g), or 201.6012(h).
         (e)  Revenue from Sections 228.005, 228.0055, and 228.006
  shall be allocated in accordance with Transportation Code 228,
  Subchapter B.  The funds from Chapter 228 shall not be considered
  revenue allocated by the formula in Subsection (a).
         (f)  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.
         (g)  If a region elects to utilize 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.
         (h)  A metropolitan planning organization operating in a
  Metropolitan Management Area as defined by 23 U.S.C 134(k) may
  utilize the allocated funds to pay for the operations cost of the
  planning organization.  The amount that may be allocated to pay for
  operations of the planning organization may not exceed the lesser
  of $10 million or ten percent of the regions total funds.
         (i)  A metropolitan planning organization as defined by 23
  U.S.C 134(d) may utilize the allocated funds to pay for the
  operations cost of the planning organization. The amount that may
  be allocated to pay for operations of the planning organization may
  not exceed the lesser of $3 million or ten percent of the regions
  total funds.
         (j)  A rural planning organization created under 201.6002
  may utilize the allocated funds to pay for the operations cost of
  the planning organization.  The amount that may be allocated to pay
  for operations of the planning organization may not exceed the
  lesser of $1 million or ten percent of the regions total funds.
         Sec. 201.6013  COMMISSION EMERGENCY AND ECONOMIC
  DEVELOPMENT FUNDS  (a)  Notwithstanding Section 201.601(b) the
  commission may choose to set aside an amount of funds not to exceed
  the lesser of ten percent of the total funds allocated to the
  districts or $250 million annually for the purpose of addressing
  emergencies or economic development opportunities that require
  transportation infrastructure.  The funds may be carried forward
  from year to year and may not accumulate to exceed an amount equal
  to $1 billion.
         (b)  If the commission elects to set aside an amount of funds
  allowed in subsection (a) then the total amount of funds shall be
  reduced by the amount prior to 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)  If the commission elects to utilize 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.
         (e)  The funds identified in subsection (a) may only be used
  to pay cost overruns and change orders of projects selected under
  this section.
         (f)  The commission may only use the funds from subsection
  (a) to make payments for projects funded in accordance with Section
  222.104 or to provide toll equity if the commission selects the
  projects using a competitive project selection process.
         Sec. 201.6014  TRANSPORTATION TRANSPARENCY PROGRAM  (a)  The
  department shall develop an interactive web based system for the
  tracking of regional allocations and projects.  The planning
  organizations shall be granted access to the system through a
  secure site to input projects and the associated project costs.
         (b)  The system shall provide the planning organization with
  their 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 the
  project that correlates to the region in which the project is
  located.
         (d)  The department shall develop standardized reports to
  assist the district engineers and executive staff in tracking the
  efficiency of the project development and to ensure the prudent use
  of funds by the region.
         (e)  The system shall be linked to a publicly accessible
  website which enables the tracking of project development and the
  expenditure of funds.  Each project shall 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 web site shall include mapping of projects by
  district to allow easy identification of projects within each
  district.
         SECTION 6.  Subchapter H, Chapter 201, Transportation Code,
  is amended by adding Sections 201.621, 201.622, 201.623 to read as
  follows:
         Sec. 201.621.  WORK PLAN.  (a)  Upon completion of the
  ten-year transportation plan in Section 201.601(c), the department
  shall utilize the projects listed to develop a proposed ten-year
  business work plan.  The work plan shall be adopted no 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 completed, 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.
         (b)  In addition to the plan required by Subsection (a) and
  other provisions of this chapter, on or before August 31 of each
  odd-numbered year, the department shall finalize a project plan for
  the time period of September 1 of that odd numbered year until
  August 31 of the following odd numbered year.  The plan must include
  a project schedule with funding for each phase of each project, a
  consultant acquisition plan with a schedule for contract
  selections, a right-of-way acquisition plan, and a letting plan.
         (c)  The department shall develop a set of performance
  measures for the plan described in Subsection (b) 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.
         (d)  At a minimum, the performance measures adopted under
  Subsection (c) 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.
         (e)  The department shall consult with the legislative
  oversight committee on transportation in developing the
  performance measures under Subsection (c).
         Sec. 201.622.  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
  201.621(b) 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 201.621(c), statewide and by
  department district, and a status report on each major project
  under development.
         Sec. 201.623.  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 Finance Committee;
               (2)  the chair of the House Appropriations Committee;
               (3)  the chair of the Senate Transportation and
  Homeland Security Committee;
               (4)  the chair of the House Transportation Committee;
               (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:
                           (i)  the Statewide Transportation Program
  and Budget,
                           (ii)  the transportation allocation funding
  formula's,
               (2)  the transportation transparency program;
               (3)  the development of performance measures under
  Section 201.621(c); and
               (4)  other tasks assigned by the lieutenant governor
  and the speaker of the house of representatives.
         (d)  This section and Section 201.621(e) expire August 31,
  2013.
         SECTION 7.  Subchapter F, Chapter 201, Transportation Code,
  is amended by adding Section 201.407 to read as follows:
         Sec. 201.407.  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.
         SECTION 8.  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 shall allocate the funding in accordance
  with a formula adopted in Section 201.6012.
         SECTION 9.  Subchapter D, Chapter 472, Transportation Code,
  is amended by adding Section 472.034 to read as follows:
         Sec. 472.034  ELIGIBILITY FOR STATE ALLOCATION OF FUNDING;
  BOARD MEMBERSHIP  (a)  In order for a metropolitan planning
  organization to be eligible to receive funding from the state for
  transportation projects under Section 201.6012, Transportation
  Code, the make up of the voting members of the board must include at
  least 50 percent elected officials, which are elected within the
  boundaries of the metropolitan planning organization.
         (b)  A metropolitan planning organization which does not
  meet the requirements set forth in subsection (a) may redesignate
  the board in compliance with the redesignation procedures set forth
  in 23 U.S.C. 134, in order to become eligible to receive an
  allocation of funding from the state under Section 201.6012,
  Transportation Code.
         (c)  In this section "elected offical" is defined as mayor,
  county judge, city councilmember, county commissioner, state
  representative, or state senator.
         SECTION 10.  The commission shall appoint an Inspector
  General to carry out the duties outlined in Section 201.407 no 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 30, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2009.