By: Hinojosa, Hegar, Nichols  S.B. No. 1420
         (In the Senate - Filed March 10, 2011; March 22, 2011, read
  first time and referred to Committee on Government Organization;
  April 7, 2011, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 6, Nays 0; April 7, 2011,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1420 By:  Hegar
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the continuation and functions of the Texas Department
  of Transportation; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 201.051, Transportation Code, is amended
  by adding Subsection (b-1) and amending Subsections (d), (f), (g),
  (h), and (j) to read as follows:
         (b-1)  A member of the commission may not accept a
  contribution to a campaign for election to an elected office.  If a
  commissioner accepts a campaign contribution, the person is
  considered to have resigned from the office and the office
  immediately becomes vacant. The vacancy shall be filled in the
  manner provided by law.
         (d)  A [Except as provided by Subsection (e), a] person is
  not eligible to serve [for appointment] as a member of the
  commission if the person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization that is regulated by or
  receives funds from the department;
               (2)  directly or indirectly owns or controls more than
  10 percent interest in a business entity or other organization that
  is regulated by or receives funds from the department;
               (3)  uses or receives a substantial amount of tangible
  goods, services, or funds from the department, other than
  compensation or reimbursement authorized by law for commission
  membership, attendance, or expenses; or
               (4)  is registered, certified, or licensed by the
  department.
         (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 to serve 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 to
  serve as [or a Texas association of automobile dealers may not be] a
  member of the commission.
         (h)  A person required to register as a lobbyist under
  Chapter 305, Government Code, because of the person's activities
  for compensation on behalf of a profession related to the operation
  of the department is not eligible to [may not] serve as a member of
  the commission.
         (j)  In this section, "Texas trade association" means a
  [nonprofit,] cooperative[,] and voluntarily joined statewide
  association of business or professional competitors in this state
  designed to assist its members and its industry or profession in
  dealing with mutual business or professional problems and in
  promoting their common interest.
         SECTION 2.  Subsection (a), Section 201.053, Transportation
  Code, is amended to read as follows:
         (a)  The governor [periodically] shall designate one
  commissioner as the chair of the commission, who shall serve as
  presiding officer of the commission.
         SECTION 3.  Subsection (a), Section 201.057, Transportation
  Code, is amended to read as follows:
         (a)  It is a ground for removal from the commission if a
  commissioner:
               (1)  does not have at the time of taking office
  [appointment] or maintain during service on the commission the
  qualifications required by Section 201.051;
               (2)  violates a prohibition provided by Section
  201.051;
               (3)  cannot discharge the commissioner's duties for a
  substantial part of the term for which the commissioner is
  appointed because of illness or disability; or
               (4)  is absent from more than half of the regularly
  scheduled commission meetings that the commissioner is eligible to
  attend during a calendar year, unless the absence is excused by
  majority vote of the commission.
         SECTION 4.  Section 201.058, Transportation Code, is amended
  to read as follows:
         Sec. 201.058.  INFORMATION ON QUALIFICATIONS AND CONDUCT.
  The department shall provide to the members of the commission, as
  often as necessary, information concerning the members'
  qualifications for office [under Subchapter B] and their
  responsibilities under applicable laws relating to standards of
  conduct for state officers.
         SECTION 5.  Subchapter C, Chapter 201, Transportation Code,
  is amended by adding Section 201.118 to read as follows:
         Sec. 201.118.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
  RESOLUTION PROCEDURES. (a)  The commission shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of department rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the department's
  jurisdiction.
         (b)  The department's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The department shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures.
         SECTION 6.  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, 2015 [2011].
         SECTION 7.  Subchapter D, Chapter 201, Transportation Code,
  is amended by adding Sections 201.210 and 201.211 to read as
  follows:
         Sec. 201.210.  LEGISLATIVE LOBBYING.  (a)  In addition to
  Section 556.006, Government Code, the commission or a department
  employee may not use money under the department's control or engage
  in an activity to influence the passage or defeat of legislation.
         (b)  Violation of Subsection (a) is grounds for dismissal of
  an employee.
         (c)  This section does not prohibit the commission or
  department employee from using state resources to:
               (1)  provide public information or information
  responsive to a request; or
               (2)  communicate with officers and employees of the
  federal government in pursuit of federal appropriations or
  programs.
         Sec. 201.211.  ETHICS AFFIRMATION AND HOTLINE.  (a)  A
  department employee shall annually affirm the employee's adherence
  to the ethics policy adopted under Section 572.051(c), Government
  Code.
         (b)  The department shall establish and operate a telephone
  hotline that enables a person to call the hotline 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.
         SECTION 8.  Subsection (a), Section 201.401, Transportation
  Code, is amended to read as follows:
         (a)  A person may not be an employee of the department who is
  employed in a "bona fide executive, administrative, or professional
  capacity," as that phrase is used for purposes of establishing an
  exemption to the overtime provisions of the federal Fair Labor
  Standards Act of 1938 (29 U.S.C. Section 201 et seq.), [exempt from
  the state's position classification plan or compensated at or above
  the amount prescribed by the General Appropriations Act for step 1,
  salary group 17, of the position classification salary schedule] if
  the person is:
               (1)  an officer, employee, or paid consultant of a
  Texas trade association[:
                     [(A)]  in the field of road construction or
  maintenance or outdoor advertising; or
                     [(B)  of automobile dealers; or]
               (2)  the spouse of an officer, manager, or paid
  consultant described by Subdivision (1).
         SECTION 9.  Subsection (b), Section 201.404, 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. The annual performance evaluations developed under
  this subsection must include the evaluation of an employee's:
               (1)  professionalism;
               (2)  diligence; and
               (3)  responsiveness to directives and requests from the
  commission and the legislature.
  SECTION 10.  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 24 years that contains all modes of transportation,
  including:
               (1)  highways and turnpikes;
               (2)  aviation;
               (3)  mass transportation;
               (4)  railroads and high-speed railroads; and
               (5)  water traffic.
         (a-1)  The plan must:
               (1)  contain specific, long-term transportation goals
  for the state and measurable targets for each goal;
               (2)  identify priority corridors, projects, or areas of
  the state that are of particular concern to the department in
  meeting the goals established under Subdivision (1); and
               (3)  contain a participation plan specifying methods
  for obtaining formal input on the goals and priorities identified
  under this subsection from:
                     (A)  other state agencies;
                     (B)  political subdivisions;
                     (C)  local transportation entities; and
                     (D)  the general public.
         (b)  [In developing the plan, the department shall seek
  opinions and assistance from other state agencies and political
  subdivisions that have responsibility for the modes of
  transportation listed by Subsection (a).] As appropriate, the
  department and the entities listed in Subsection (a-1)(3) [such an
  agency or political subdivision] shall enter into a memorandum of
  understanding relating to the planning of transportation services.
         (c)  The plan must include a component that is not
  financially constrained and identifies transportation improvements
  designed to relieve congestion. In developing this component of
  the plan, the department shall seek opinions and assistance from
  officials who have local responsibility for modes of transportation
  listed in Subsection (a).
         (d)  [The plan shall include a component, published
  annually, that describes the evaluation of transportation
  improvements based on performance measures, such as indices
  measuring delay reductions or travel time improvements.] The
  department shall consider the goals and measurable targets
  established under Subsection (a-1)(1) [performance measures] in
  selecting transportation projects [improvements].
         (e)  The department annually shall provide to the lieutenant
  governor, the speaker of the house of representatives, and the
  chair of the standing committee of each house of the legislature
  with primary jurisdiction over transportation issues an analysis of
  the department's progress in attaining the goals under Subsection
  (a-1)(1).  The department shall make the information under this
  subsection available on its Internet website.
         (f)  The department shall update the plan every four years or
  more frequently as necessary.
         SECTION 11.  Subchapter H, Chapter 201, Transportation Code,
  is amended by adding Sections 201.6015 and 201.620 to read as
  follows:
         Sec. 201.6015.  INTEGRATION OF PLANS AND POLICY EFFORTS. In
  developing each of its transportation plans, programs, and policy
  efforts, the department must clearly reference the 24-year plan
  under Section 201.601 and specify how the plan, program, or policy
  effort supports or otherwise relates to the specific goals under
  that section.
         Sec. 201.620.  COORDINATION WITH METROPOLITAN PLANNING
  ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The
  department shall collaborate with metropolitan planning
  organizations to develop mutually acceptable assumptions for the
  purposes of long-range federal and state funding forecasts and use
  those assumptions to guide long-term planning in the statewide
  transportation plan under Section 201.601.
         SECTION 12.  Section 201.703, Transportation Code, is
  amended to read as follows:
         Sec. 201.703.  EXPENDITURES AND CONTRACTS FOR
  TRANSPORTATION PROGRAMS OR PROJECTS [ROADS] NOT ON THE HIGHWAY
  SYSTEM. (a)  The department in conjunction with the Federal
  Highway Administration may spend for a transportation program
  related to 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 program or project [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 a
  transportation program or for the improvement of a transportation
  project [the construction of a road] not on [in] the state highway
  system.
         (c)  The expenditure of state money is limited to:
               (1)  the cost of construction and engineering,
  overhead, and other costs on which the application of federal money
  is prohibited or impractical; and
               (2)  the cost of providing oversight required under
  federal law.
         (d)  With regard to work for a transportation project that is
  not on the state highway system, the department may:
               (1)  enter into a contract for the work in the same
  manner as for work on a transportation project that is on the state
  highway system; or
               (2)  by rule authorize a local government to enter into
  a contract for the work in the same manner as a local government is
  authorized to contract for work on a comparable project on the state
  highway system.
         SECTION 13.  (a)  Section 201.801, Transportation Code, is
  amended to read as follows:
         Sec. 201.801.  [INFORMATION ABOUT DEPARTMENT;] COMPLAINTS.  
  (a)  The department shall maintain a system to promptly and
  efficiently act on complaints filed with the department. The
  department shall maintain information about the parties to and the
  subject matter of a complaint and a summary of the results of the
  review or investigation of the complaint and the disposition of the
  complaint.
         (b)  The department shall make information available
  describing its procedures for complaint investigation and
  resolution [prepare information of public interest describing the
  functions of the department and the department's procedures by
  which a complaint is filed with the department and resolved by the
  department. The department shall make the information available to
  the public and appropriate state agencies].
         [(b)     The commission by rule shall establish methods by which
  consumers and service recipients are notified of the department's
  name, mailing address, and telephone number for directing
  complaints to the department. The commission may provide for that
  notification:
               [(1)     on each registration form, application, or
  written contract for services of an individual or entity regulated
  by the department;
               [(2)     on a sign prominently displayed in the place of
  business of each individual or entity regulated by the department;
  or
               [(3)     in a bill for service provided by an individual or
  entity regulated by the department.]
         (c)  [The department shall:
               [(1)     keep an information file about each written
  complaint filed with the department that the department has the
  authority to resolve; and
               [(2)     provide the person who filed the complaint, and
  each person or entity that is the subject of the complaint,
  information about the department's policies and procedures
  relating to complaint investigation and resolution.
         [(d)]  The department[, at least quarterly and until final
  disposition of a written complaint that is filed with the
  department and that the department has the authority to resolve,]
  shall periodically notify the parties to the complaint of its
  status until final disposition unless the notice would jeopardize
  an undercover investigation.
         (d)  The commission shall adopt rules applicable to each
  division and district to establish a process to act on complaints
  filed with the department [(e)     With regard to each complaint filed
  with the department, the department shall keep the following
  information:
               [(1)  the date the complaint is filed;
               [(2)  the name of the person filing the complaint;
               [(3)  the subject matter of the complaint;
               [(4)     a record of each person contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     if the department takes no action on the
  complaint, an explanation of the reasons that no action was taken].
         (e)  The department shall develop a standard form for
  submitting a complaint and make the form available on its Internet
  website.  The department shall establish a method to submit
  complaints electronically.
         (f)  The department shall develop a method for analyzing the
  sources and types of complaints and violations and establish
  categories for the complaints and violations. The department shall
  use the analysis to focus its information and education efforts on
  specific problem areas identified through the analysis.
         (g)  The department shall:
               (1)  compile:
                     (A)  detailed statistics and analyze trends on
  complaint information, including:
                           (i)  the nature of the complaints;
                           (ii)  their disposition; and
                           (iii)  the length of time to resolve
  complaints; and
                     (B)  complaint information on a district and a
  divisional basis; and
               (2)  report the information on a monthly basis to the
  division directors, office directors, and district engineers and on
  a quarterly basis to the commission.
         (b)  The Texas Transportation Commission shall adopt rules
  under Section 201.801, Transportation Code, as amended by this
  section, not later than March 1, 2012.
         SECTION 14.  Subsection (a), Section 201.802,
  Transportation Code, is amended to read as follows:
         (a)  The commission shall develop and implement policies
  that provide the public with a reasonable opportunity to appear
  before the commission and speak on any issue under the jurisdiction
  of the department [commission].
  SECTION 15.  (a)  Subchapter J, Chapter 201, Transportation
  Code, is amended by adding Sections 201.807, 201.808, 201.809,
  201.810, and 201.811 to read as follows:
         Sec. 201.807.  PROJECT INFORMATION REPORTING SYSTEM.
  (a)  In this section, "department project" means a highway project
  under the jurisdiction of the department, including a grouped
  rehabilitation and preventive maintenance project, that:
               (1)  is being developed or is under construction; and
               (2)  is identified in the work program required under
  Section 201.999.
         (b)  The department shall establish a project information
  reporting system that makes available in a central location on the
  department's Internet website easily accessible and searchable
  information regarding all of the department's transportation plans
  and programs, including the unified transportation program
  required by Section 201.992. The department shall post information
  on its Internet website as required by this subsection as the
  information becomes available to the department and in a manner
  that is not cost prohibitive. The project information reporting
  system shall contain information about:
               (1)  each department project, including:
                     (A)  the status of the project;
                     (B)  each source of funding for the project;
                     (C)  benchmarks for evaluating the progress of the
  project;
                     (D)  timelines for completing the project;
                     (E)  a list of the department employees
  responsible for the project, including information to contact each
  person on that list; and
                     (F)  the results of the annual review required
  under Subsection (e); and
               (2)  the department's funds, including each source for
  the department's funds, and the amount and general type or purpose
  of each expenditure as described in the comptroller's statewide
  accounting system, reported by each:
                     (A)  department district;
                     (B)  program funding category as required by
  Section 201.992(b)(2); and
                     (C)  type of revenue, including revenue from a
  comprehensive development agreement or a toll project.
         (c)  In developing the project information reporting system,
  the department shall collaborate with:
               (1)  the legislature;
               (2)  local transportation entities as defined by
  Section 201.991; and
               (3)  members of the public.
         (d)  The department shall make the statistical information
  provided under this section available on the department's Internet
  website in more than one downloadable electronic format.
         (e)  As a component of the project information reporting
  system required by this section, the department shall conduct an
  annual review of the benchmarks and timelines of each project
  included in the department's transportation plans, including the
  unified transportation program, to determine the completion rates
  of the projects and whether the projects were completed on time.
         (f)  The department shall update the information contained
  in the project information reporting system on a regular basis, as
  specified by commission rule.
         Sec. 201.808.  TRANSPORTATION EXPENDITURE PRIORITIES.
  (a)  The department shall develop a process to identify and
  distinguish between the transportation projects that are required
  to maintain the state infrastructure and the transportation
  projects that would improve the state infrastructure in a manner
  consistent with the statewide transportation plan required by
  Section 201.601.
         (b)  The department shall establish a transportation
  expenditure reporting system that makes available in a central
  location on the department's Internet website easily accessible and
  searchable information regarding the priorities of transportation
  expenditures for the identified transportation projects.
         (c)  The department shall include in the transportation
  expenditure reporting system:
               (1)  reports prepared by the department or an
  institution of higher education that evaluate the effectiveness of
  the department's expenditures on transportation projects to
  achieve the transportation goal;
               (2)  information about the condition of the pavement
  for each highway under the jurisdiction of the department,
  including the percentage of pavement that the department
  determines to be in good or better condition;
               (3)  the condition of bridges, including information
  about bridge condition scores;
               (4)  information about peak-hour travel congestion in
  the eight largest metropolitan areas of the state; and
               (5)  information about the number of traffic fatalities
  per 100 million miles traveled.
         (d)  The department shall provide the information made
  available under Subsection (c) in a format that allows a person to
  conduct electronic searches for information regarding a specific
  county, highway under the jurisdiction of the department, or type
  of road.
         (e)  The department shall establish criteria to prioritize
  the transportation needs for the state that are consistent with the
  statewide transportation plan.
         (f)  Each department district shall enter information into
  the transportation expenditure reporting system, including
  information about:
               (1)  each district transportation project; and
               (2)  the category to which the project has been
  assigned and the priority of the project in the category under
  Section 201.996.
         (g)  The transportation expenditure reporting system shall
  allow a person to compare information produced by that system to
  information produced by the project information reporting system.
         Sec. 201.809.  STATEWIDE TRANSPORTATION REPORT. (a)  The
  department annually shall evaluate and publish a report about the
  status of each transportation goal for this state. The report must
  include:
               (1)  information about the progress of each long-term
  transportation goal that is identified by the statewide
  transportation plan;
               (2)  the status of each project identified as a major
  priority;
               (3)  a summary of the number of statewide project
  implementation benchmarks that have been completed; and
               (4)  information about the accuracy of previous
  department financial forecasts.
         (b)  The department shall disaggregate the information in
  the report by department district.
         (c)  The department shall provide a copy of the district
  report to each member of the legislature for each department
  district located in the member's legislative district, and at the
  request of a member, a department employee shall meet with the
  member to explain the report.
         (d)  The department shall provide a copy of each district
  report to the political subdivisions located in the department
  district that is the subject of the report, including:
               (1)  a municipality;
               (2)  a county; and
               (3)  a local transportation entity as defined by
  Section 201.991.
         Sec. 201.810.  DEPARTMENT INFORMATION CONSOLIDATION.
  (a)  To the extent practicable and to avoid duplication of
  reporting requirements, the department may combine the reports
  required under this subchapter with reports required under other
  provisions of this code.
         (b)  The department shall develop a central location on the
  department's Internet website that provides easily accessible and
  searchable information to the public contained in the reports
  required under this subchapter and other provisions of this code.
         Sec. 201.811.  PUBLIC INVOLVEMENT POLICY.  (a)  The
  department shall develop and implement a policy for public
  involvement that guides and encourages public involvement with the
  department.  The policy must:
               (1)  provide for the use of public involvement
  techniques that target different groups and individuals;
               (2)  encourage continuous contact between the
  department and persons outside the department throughout the
  transportation decision-making process;
               (3)  require the department to make efforts toward:
                     (A)  clearly tying public involvement to
  decisions made by the department; and
                     (B)  providing clear information to the public
  about specific outcomes of public input; and
               (4)  apply to all public input with the department,
  including input:
                     (A)  on statewide transportation policy-making;
                     (B)  in connection with the environmental process
  relating to specific projects; and
                     (C)  into the commission's rulemaking procedures.
         (b)  The department shall document the number of positive,
  negative, or neutral public comments received 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.
         (b)  Not later than September 1, 2011, the Texas Department
  of Transportation shall establish the central location on the
  department's Internet website required by Section 201.810,
  Transportation Code, as added by this section.
         SECTION 16.  Chapter 201, Transportation Code, is amended by
  adding Subchapter P to read as follows:
  SUBCHAPTER P. UNIFIED TRANSPORTATION PROGRAM
         Sec. 201.991.  DEFINITION. In this subchapter, "local
  transportation entity" means any entity that participates in the
  transportation planning process. The term includes a metropolitan
  planning organization as defined by Section 472.031, a regional
  tollway authority organized under Chapter 366, a regional
  transportation authority operating under Chapter 452, and a rural
  transit district as defined by Section 458.001.
         Sec. 201.992.  UNIFIED TRANSPORTATION PROGRAM. (a)  The
  department shall develop a unified transportation program covering
  a period of 10 years to guide the development of and authorize
  construction of transportation projects. The program must:
               (1)  annually identify target funding levels; and
               (2)  list all projects that the department intends to
  develop or begin construction of during the program period.
         (b)  The commission shall adopt rules that:
               (1)  specify the criteria for selecting projects to be
  included in the program;
               (2)  define program funding categories, including
  categories for safety, maintenance, and mobility; and
               (3)  define each phase of a major transportation
  project, including the planning, programming, implementation, and
  construction phases.
         (c)  The department shall publish the entire unified
  transportation program and summary documents highlighting project
  benchmarks, priorities, and forecasts in appropriate media and on
  the department's Internet website in a format that is easily
  understandable by the public.
         (d)  In developing the rules required by this section, the
  commission shall collaborate with local transportation entities.
         Sec. 201.993.  ANNUAL UPDATE TO UNIFIED TRANSPORTATION
  PROGRAM. (a)  The department shall annually update the unified
  transportation program.
         (b)  The annual update must include:
               (1)  the annual funding forecast required by Section
  201.994;
               (2)  the list of major transportation projects required
  by Section 201.995(b); and
               (3)  the category to which the project has been
  assigned and the priority of the project in the category under
  Section 201.996.
         (c)  The department shall collaborate with local
  transportation entities to develop the annual update to the unified
  transportation program.
         Sec. 201.994.  ANNUAL FUNDING AND CASH FLOW FORECASTS.
  (a)  The department annually shall:
               (1)  develop and publish a forecast of all funds the
  department expects to receive, including funds from this state and
  the federal government; and
               (2)  use that forecast to guide planning for the
  unified transportation program.
         (b)  The department shall collaborate with local
  transportation entities to develop scenarios for the forecast
  required by Subsection (a) based on mutually acceptable funding
  assumptions.
         (c)  Not later than September 1 of each year, the department
  shall prepare and publish a cash flow forecast for a period of 20
  years.
         Sec. 201.995.  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 unified transportation program.
         (b)  The department annually shall update the list of
  projects that are designated as major transportation projects.
         (c)  In adopting rules required by this section, the
  commission shall collaborate with local transportation entities.
         Sec. 201.996.  PRIORITY PROJECTS IN PROGRAM CATEGORIES.
  (a)  The commission by rule shall:
               (1)  establish categories in the unified
  transportation program;
               (2)  assign each project identified in the program to a
  category; and
               (3)  designate the priority ranking of each project
  within each category.
         (b)  The department shall collaborate with local
  transportation entities when assigning each project included in the
  unified transportation program to a category established under
  Subsection (a).
         (c)  The highest priority projects within an applicable
  category of the unified transportation program must be projects
  designated as major transportation projects.
         Sec. 201.997.  FUNDING ALLOCATION. (a)  For each funding
  category established under Section 201.992(b)(2), the commission
  by rule shall specify the formulas for allocating funds to
  districts and metropolitan planning organizations for:
               (1)  preventive maintenance and rehabilitation of the
  state highway system in all districts;
               (2)  mobility and added capacity projects in
  metropolitan and urban areas;
               (3)  mobility and added capacity projects on major
  state highways that provide statewide connectivity between urban
  areas and highway system corridors;
               (4)  congestion mitigation and air quality improvement
  projects in nonattainment areas;
               (5)  metropolitan mobility and added capacity projects
  within the boundaries of designated metropolitan planning areas of
  metropolitan planning organizations located in a transportation
  management area;
               (6)  transportation enhancements project funding; and
               (7)  projects eligible for federal or state funding, as
  determined by the applicable district engineer.
         (b)  Subject to applicable state and federal law, the
  commission shall determine the allocation of funds in all of the
  other categories established under Section 201.992(b)(2),
  including a category for projects of specific importance to the
  state, including projects that:
               (1)  promote economic opportunity;
               (2)  increase efficiency on military deployment routes
  or that retain military assets; and
               (3)  maintain the ability of appropriate entities to
  respond to emergencies.
         (c)  The commission shall update the formulas established
  under this section at least every four years.
         Sec. 201.998.  FUND DISTRIBUTION. (a)  The department shall
  allocate funds to the department districts based on the formulas
  adopted under Section 201.997.
         (b)  In distributing funds to department districts, the
  department may not exceed the cash flow forecast prepared and
  published under Section 201.994(c).
         Sec. 201.999.  WORK PROGRAM. (a)  Each department district
  shall develop a consistently formatted work program based on the
  unified transportation program covering a period of four years that
  contains all projects that the district proposes to implement
  during that period.
         (b)  The work program must contain:
               (1)  information regarding the progress of projects
  designated as major transportation projects, according to project
  implementation benchmarks and timelines established under Section
  201.995; and
               (2)  a summary of the progress on other district
  projects.
         (c)  The department shall use the work program to:
               (1)  monitor the performance of the district; and
               (2)  evaluate the performance of district employees.
         (d)  The department shall publish the work program in
  appropriate media and on the department's Internet website.
         SECTION 17.  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)  A grant transferring real property under Subsection
  (e)(2) must contain a reservation providing that if property
  described by that subsection ceases to be used for public road
  purposes, that real property shall immediately and automatically
  revert to this state.
  SECTION 18.  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 commission 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 19.  Subchapter A, Chapter 223, Transportation Code,
  is amended by adding Section 223.017 to read as follows:
         Sec. 223.017.  DESIGN-BUILD CONTRACTS FOR NONTOLLED HIGHWAY
  PROJECTS. (a)  In this section, "design-build contract" means an
  agreement with a private entity for the design and construction,
  rehabilitation, expansion, or improvement of a highway project but
  does not include the financing or operation of the highway.
         (b)  The department may enter into a design-build contract
  for a nontolled highway project.
         (c)  Notwithstanding Section 223.0041, if the department
  enters into a design-build contract under this section, the
  department shall use a competitive procurement process that
  provides the best value for the department.
         (d)  The commission shall adopt rules specifying the
  conditions under which a design-build contract may be considered.
  In developing rules the commission must address:
               (1)  the size and complexity of an eligible project;
               (2)  the time constraints for delivery of an eligible
  project;
               (3)  the level and training of the staff required to
  manage an eligible project; and
               (4)  other factors the commission considers important.
         SECTION 20.  Section 391.004, Transportation Code, is
  amended to read as follows:
         Sec. 391.004.  DISPOSITION OF FEES [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 state [Texas] highway [beautification] fund
  [account]. The commission shall use money in the state [Texas]
  highway [beautification] fund [account] to administer this chapter
  and Chapter 394.
         SECTION 21.  (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 commission 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
  the department's procedures for complaint investigation and
  resolution, including making information about the procedures
  available on the department's Internet website;
               (2)  a system to prioritize complaints so that the most
  serious complaints receive attention before less serious
  complaints; and
               (3)  a procedure for compiling and reporting detailed
  annual statistics about complaints.
         (b)  The department shall provide to each person who files a
  written complaint with the department, and to each person who is the
  subject of a complaint, information about the department's policies
  and procedures relating to complaint investigation and resolution.
         (c)  The department shall keep, pursuant to the department's
  approved records retention schedule, an information file about each
  written complaint filed with the department that the department has
  authority to resolve. The department shall keep the following
  information for each complaint for the purpose of enforcing this
  chapter:
               (1)  the date the complaint is filed;
               (2)  the name of the person filing the complaint;
               (3)  the subject matter of the complaint;
               (4)  each person contacted in relation to the
  complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  if the department does not take action on the
  complaint, an explanation of the reasons that action was not taken.
         (d)  If a written complaint is filed with the department that
  the department has authority to resolve, the department, at least
  quarterly and until final disposition of the complaint, shall
  notify the parties to the complaint of the status of the complaint
  unless the notice would jeopardize an ongoing department
  investigation.
         (b)  The Texas Transportation Commission shall adopt rules
  under Section 391.006, Transportation Code, as added by this
  section, not later than September 1, 2012.
         SECTION 22.  Subchapter B, Chapter 391, Transportation Code,
  is amended by adding Section 391.0355 to read as follows:
         Sec. 391.0355.  ADMINISTRATIVE PENALTY. (a)  In lieu of a
  suit to collect a civil penalty, the commission, after notice and an
  opportunity for a hearing before the commission, may impose an
  administrative penalty against a person who violates this chapter
  or a rule adopted by the commission under this chapter. Each day a
  violation continues is a separate violation.
         (b)  The amount of the administrative penalty may not exceed
  the maximum amount of a civil penalty under Section 391.035.
         (c)  A proceeding under this section is a contested case
  under Chapter 2001, Government Code.
         (d)  Judicial review of an appeal of an administrative
  penalty imposed under this section is under the substantial
  evidence rule.
         (e)  An administrative penalty collected under this section
  shall be deposited to the credit of the state highway fund.
         SECTION 23.  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 the number of off-premise signs
  under Chapter 394 owned by a license applicant.
         SECTION 24.  Subsection (b), Section 391.065,
  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 25.  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 26.  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 27.  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
  state highway fund.
         SECTION 28.  (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 commission 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
  the department's procedures for complaint investigation and
  resolution, including making information about the procedures
  available on the department's Internet website;
               (2)  a system to prioritize complaints so that the most
  serious complaints receive attention before less serious
  complaints; and
               (3)  a procedure for compiling and reporting detailed
  annual statistics about complaints.
         (b)  The department shall provide to each person who files a
  written complaint with the department, and to each person who is the
  subject of a complaint, information about the department's policies
  and procedures relating to complaint investigation and resolution.
         (c)  The department shall keep, pursuant to the department's
  approved records retention schedule, an information file about each
  written complaint filed with the department that the department has
  authority to resolve. The department shall keep the following
  information for each complaint for the purpose of enforcing this
  chapter:
               (1)  the date the complaint is filed;
               (2)  the name of the person filing the complaint;
               (3)  the subject matter of the complaint;
               (4)  each person contacted in relation to the
  complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  if the department does not take action on the
  complaint, an explanation of the reasons that action was not taken.
         (d)  If a written complaint is filed with the department that
  the department has authority to resolve, the department, at least
  quarterly and until final disposition of the complaint, shall
  notify the parties to the complaint of the status of the complaint
  unless the notice would jeopardize an ongoing department
  investigation.
         (b)  The Texas Transportation Commission shall adopt rules
  under Section 394.006, Transportation Code, as added by this
  section, not later than September 1, 2012.
         SECTION 29.  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 30.  (a)  Subchapter B, Chapter 394, Transportation
  Code, is amended by adding Sections 394.0201, 394.0202, 394.0203,
  394.0204, 394.0205, 394.0206, 394.0207, 394.027, 394.028, and
  394.029 to read as follows:
         Sec. 394.0201.  ERECTING OFF-PREMISE SIGN WITHOUT LICENSE;
  OFFENSE. (a)  A person commits an offense if the person wilfully
  erects or maintains an off-premise sign on a rural road without a
  license under this subchapter.
         (b)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $500 or more than $1,000.  Each
  day of the proscribed conduct is a separate offense.
         (c)  A person is not required to obtain a license to erect or
  maintain an on-premise sign.
         Sec. 394.0202.  ISSUANCE AND PERIOD OF LICENSE. (a)  The
  commission shall issue a license to a person who:
               (1)  files with the commission a completed application
  form within the time specified by the commission;
               (2)  pays the appropriate license fee; and
               (3)  files with the commission a surety bond.
         (b)  A license may be issued for one year or longer.
         (c)  At least 30 days before the date on which a person's
  license expires, the commission shall notify the person of the
  impending expiration. The notice must be in writing and sent to the
  person's last known address according to the records of the
  commission.
         Sec. 394.0203.  LICENSE FEE. The commission may set the
  amount of a license fee according to a scale graduated by the number
  of off-premise signs and units of outdoor advertising under Chapter
  391 owned by a license applicant.
         Sec. 394.0204.  SURETY BOND. (a)  The surety bond required
  of an applicant for a license under Section 394.0202 must be:
               (1)  in the amount of $2,500 for each county in the
  state in which the person erects or maintains an off-premise sign;
  and
               (2)  payable to the commission for reimbursement for
  removal costs of an off-premise sign that the license holder
  unlawfully erects or maintains.
         (b)  A person may not be required to provide more than
  $10,000 in surety bonds.
         Sec. 394.0205.  RULES; FORMS. (a)  The commission may adopt
  rules to implement Sections 394.0201(a), 394.0202, 394.0203,
  394.0204, and 394.0206.
         (b)  For the efficient management and administration of this
  chapter and to reduce the number of employees required to enforce
  this chapter, the commission shall adopt rules for issuing
  standardized forms that are for submission by license holders and
  applicants and that provide for an accurate showing of the number,
  location, or other information required by the commission for each
  license holder's or applicant's off-premise signs or outdoor
  advertising under Chapter 391.
         (c)  The commission may not adopt a rule under this chapter
  that restricts competitive bidding or advertising by the holder of
  a license issued under this chapter other than a rule to prohibit
  false, misleading, or deceptive practices. The limitation provided
  by this section applies only to rules relating to the occupation of
  outdoor advertiser and does not affect the commission's power to
  regulate the orderly and effective display of an off-premise sign
  under this chapter. A rule to prohibit false, misleading, or
  deceptive practices may not:
               (1)  restrict the use of:
                     (A)  any legal medium for an advertisement;
                     (B)  the license holder's advertisement under a
  trade name; or
                     (C)  the license holder's personal appearance or
  voice in an advertisement, if the license holder is an individual;
  or
               (2)  relate to the size or duration of an advertisement
  by the license holder.
         Sec. 394.0206.  REVOCATION OR SUSPENSION OF LICENSE; APPEAL.
  (a)  The commission may revoke or suspend a license issued under
  this subchapter or place on probation a license holder whose
  license is suspended if the license holder violates this chapter or
  a rule adopted under this chapter. If the suspension of the license
  is probated, the department may require the license holder to
  report regularly to the commission on any matter that is the basis
  of the probation.
         (b)  The judicial appeal of the revocation or suspension of a
  license must be initiated not later than the 15th day after the date
  of the commission's action.
         (c)  The commission may adopt rules for the reissuance of a
  revoked or suspended license and may set fees for the reissuance.
         (d)  The commission may deny the renewal of a license
  holder's existing license if the license holder has not complied
  with the permit requirements of this chapter or Chapter 391.
         Sec. 394.0207.  APPLICABILITY OF LICENSE.  In addition to
  authorizing a person to erect or maintain an off-premise sign, a
  license issued under this chapter authorizes a person to erect or
  maintain outdoor advertising under Chapter 391.
         Sec. 394.027.  DENIAL OF PERMIT; APPEAL. The commission may
  create a process by which an applicant may appeal a denial of a
  permit under this subchapter.
         Sec. 394.028.  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. 394.029.  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).
         (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 31.  Section 394.050, Transportation Code, is
  amended to read as follows:
         Sec. 394.050.  [BOARD OF] VARIANCE.  The commission or a
  person designated by the 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 32.  Subsections (a) and (d), Section 394.082,
  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].
         SECTION 33.  Subchapter D, Chapter 472, Transportation Code,
  is amended by adding Section 472.035 to read as follows:
         Sec. 472.035.  COORDINATION WITH DEPARTMENT TO DEVELOP
  LONG-TERM PLANNING ASSUMPTIONS. Each metropolitan planning
  organization shall work with the department to develop mutually
  acceptable assumptions for the purposes of long-range federal and
  state funding forecasts and use those assumptions to guide
  long-term planning in the organization's long-range transportation
  plan.
         SECTION 34.  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 in cooperation
  with local governments shall actively manage a system of changeable
  message signs located on highways under the jurisdiction of the
  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 when applicable.
         SECTION 35.  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;
               (4)  eliminating all exemptions for overweight
  vehicles; and
               (5)  the feasibility and impact of different approaches
  to regulating oversize and overweight vehicles that would help
  reduce damage to roads and bridges and provide increased funding
  for maintenance costs in the future.
         (c)  Not later than December 31, 2011, the department shall
  report the results of the study conducted under this section to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the appropriate oversight committee of each
  house of the legislature.
         (d)  This section expires September 1, 2012.
         SECTION 36.  Section 201.0545, Transportation Code, is
  repealed.
         SECTION 37.  This Act takes effect September 1, 2011.
 
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