81R29158 E
 
  By: Isett, Pickett, Harper-Brown H.B. No. 300
 
  Substitute the following for H.B. No. 300:
 
  By:  Pickett C.S.H.B. No. 300
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the continuation and functions of the Texas Department
  of Transportation, including the governance of the department and
  the transfer of certain functions of the department to the Texas
  Department of Motor Vehicles and the office of the governor;
  providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. GENERAL COMMISSION AND DEPARTMENT PROVISIONS
         SECTION 1.01.  Sections 201.051(a), (b), (f), (g), (h), and
  (j), Transportation Code, are amended to read as follows:
         (a)  The Texas Transportation Commission consists of five
  members, of whom:
               (1)  three are appointed by the governor with the
  advice and consent of the senate;
               (2)  one is appointed by the governor with the advice
  and consent of the senate, selected from a list of individuals
  provided by the speaker of the house of representatives; and
               (3)  one is appointed by the lieutenant governor.
         (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.
         (f)  An officer, employee, or paid consultant of a Texas
  trade association in the field of road construction or maintenance,
  aviation, or outdoor advertising is not eligible for appointment as
  [or a Texas trade association of automobile dealers may not be] a
  member of the commission.
         (g)  The spouse of an officer, manager, or paid consultant of
  a Texas trade association in the field of road construction or
  maintenance, aviation, or outdoor advertising is not eligible for
  appointment as [or a Texas association of automobile dealers may
  not be] a member of the commission.
         (h)  A person required to register as a lobbyist under
  Chapter 305, Government Code, because of the person's activities
  for compensation on behalf of a profession related to the operation
  of the department is not eligible for appointment [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 1.02.  Section 201.053(a), 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 1.03.  Section 201.056, Transportation Code, is
  amended to read as follows:
         Sec. 201.056.  COMPENSATION.  A member of the commission is
  entitled to compensation as provided by the General Appropriations
  Act. [If compensation for members is not provided by that Act, each
  member is entitled to reimbursement for actual and necessary
  expenses incurred in performing functions as a member of the
  commission.]
         SECTION 1.04.  Section 201.057(a), 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 1.05.  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 1.06.  Section 201.105, Transportation Code, is
  amended by amending Subsections (a) and (b) and adding Subsections
  (h) and (i) 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)  Except as provided in Subsection (h) [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 shall 
  consider all costs and benefits, including highway activity in
  determining [and] the number of employees required for the proposed
  districts [district].
         (h)  In establishing district boundaries under Subsection
  (b), the commission may vary from the boundaries of a regional
  planning commission created under Chapter 391, Local Government
  Code, to the extent it determines necessary to avoid:
               (1)  significant adverse economic impact on local
  communities caused by the closing of one or more existing
  department offices;
               (2)  significant cost inefficiencies caused by the
  realignment of existing district boundaries; or
               (3)  significant disruptions to the existing workforce
  of one or more districts.
         (i)  If the commission varies from the boundaries of a
  regional planning commission as authorized by Subsection (h), the
  commission shall send a report explaining the variances to:
               (1)  the Legislative Budget Board;
               (2)  the governor;
               (3)  the chair of the House Transportation Committee;
               (4)  the chair of the Senate Transportation and
  Homeland Security Committee;
               (5)  the chair of the Senate Finance Committee; and
               (6)  the chair of the House Appropriations Committee.
         SECTION 1.07.  Subchapter C, Chapter 201, Transportation
  Code, is amended by adding Sections 201.117 and 201.118 to read as
  follows:
         Sec. 201.117.  TECHNOLOGICAL SOLUTIONS. The commission
  shall implement a policy requiring the department to use
  appropriate technological solutions to improve the department's
  ability to perform its functions. The policy must ensure that the
  public is able to interact with the department on the Internet.
         Sec. 201.118.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
  RESOLUTION PROCEDURES. (a) The commission shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of department rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the department's
  jurisdiction.
         (b)  The department's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The commission shall designate a trained person to:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  serve as a resource for any training needed to
  implement the procedures for negotiated rulemaking or alternative
  dispute resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures, as implemented by the department.
         SECTION 1.08.  Sections 201.202(a) and (c), Transportation
  Code, are amended to read as follows:
         (a)  The commission shall organize the department into
  divisions to accomplish the department's functions and the duties
  assigned to it, including divisions for:
               (1)  aviation;
               (2)  highways and roads;
               (3)  public transportation; and
               (4)  rail transportation [motor vehicle titles and
  registration].
         (c)  A [In appointing a] person designated by the commission
  as the department's chief financial officer must report directly to
  the commission [to supervise a function previously performed by the
  former State Department of Highways and Public Transportation,
  Texas Department of Aviation, or Texas Turnpike Authority,
  preference shall be given to a person employed in a similar position
  in that former agency].
         SECTION 1.09.  Section 201.204, Transportation Code, is
  amended to read as follows:
         Sec. 201.204.  SUNSET PROVISION.  The Texas Department of
  Transportation is subject to Chapter 325, Government Code (Texas
  Sunset Act). Unless continued in existence as provided by that
  chapter, the department is abolished September 1, 2013 [2009].
         SECTION 1.10.  Subchapter D, Chapter 201, Transportation
  Code, is amended by adding Sections 201.210, 201.211, 201.212, and
  201.213 to read as follows:
         Sec. 201.210.  COMPLIANCE CERTIFICATION. (a) Not later
  than September 1 of each year, each member of the commission, the
  director, and the department's chief financial officer shall
  certify in writing that the commission member, the director, or the
  officer, as applicable:
               (1)  is responsible for establishing and maintaining
  the department's internal controls;
               (2)  has evaluated the effectiveness of those controls;
               (3)  has presented conclusions about the effectiveness
  of the department's internal controls and applicable reporting
  requirements; and
               (4)  has effectively complied with all applicable
  legislative mandates.
         (b)  The members of the commission, the director, and the
  department's chief financial officer shall submit the
  certifications required by Subsection (a) to the governor, the
  lieutenant governor, the speaker of the house of representatives,
  the chair of the standing committee of each house of the legislature
  with primary jurisdiction over transportation matters, and the
  transportation legislative oversight committee created under
  Chapter 205.
         (c)  The transportation legislative oversight committee
  shall recommend to the 82nd Legislature appropriate penalties for
  failure to submit the certifications required by Subsection (a).
  This subsection expires January 1, 2012.
         Sec. 201.211.  LEGISLATIVE LOBBYING. (a) In addition to the
  prohibition in Section 556.006, Government Code, a member of 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)  A violation of Subsection (a) is grounds for dismissal
  of an employee.
         (c)  This section does not prohibit a member of 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.
         Sec. 201.212.  ETHICS AFFIRMATION AND HOTLINE.  (a)  A
  department employee shall annually affirm the employee's adherence
  to the ethics policy adopted under Section 572.051(c), Government
  Code.
         (b)  The department shall establish and operate a telephone
  line to be known as the Ethics Hotline that enables a person to call
  the hotline number, anonymously or not anonymously, to report an
  alleged violation of the ethics policy adopted under Section
  572.051(c), Government Code.
         Sec. 201.213.  LEGISLATIVE APPROPRIATIONS REQUEST.  
  Department staff shall deliver the department's legislative
  appropriations request to the commission in an open meeting not
  later than the 30th day before the commission adopts the
  legislative appropriations request for submission to the
  Legislative Budget Board.
         SECTION 1.11.  Section 201.301(a), Transportation Code, is
  amended to read as follows:
         (a)  The commission shall elect an executive director for the
  department. [The director must be a registered professional
  engineer in this state and experienced and skilled in
  transportation planning, development, construction, and
  maintenance.]
         SECTION 1.12.  Section 201.404(b), Transportation Code, is
  amended to read as follows:
         (b)  The director or the director's designee shall develop a
  system of annual performance evaluations that are based on
  documented employee performance. All merit pay for department
  employees must be based on the system established under this
  subsection. If an annual performance evaluation indicates that an
  employee's performance is unsatisfactory, the commission and
  director shall consider whether the employee should be terminated.
  The annual performance evaluations developed under this subsection
  must include the evaluation of an employee's:
               (1)  professionalism;
               (2)  diligence; and
               (3)  responsiveness to directives and requests from the
  commission and the legislature.
         SECTION 1.13.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Section 201.6041 to read as follows:
         Sec. 201.6041.  DELEGATION OF ENVIRONMENTAL REVIEW TO LOCAL
  TOLL PROJECT ENTITY. (a) In this section, "local toll project
  entity" means:
               (1)  a county under Chapter 284;
               (2)  a regional tollway authority under Chapter 366; or
               (3)  a regional mobility authority under Chapter 370.
         (b)  To the extent permitted by law, the department shall, on
  request by a local toll project entity, delegate to the entity all
  responsibility for obtaining environmental review required for a
  project to be developed and constructed by the entity. If authority
  is delegated under this section:
               (1)  the local toll project entity's environmental
  documents, environmental studies, and public involvement
  activities must comply with state procedures;
               (2)  the local toll project entity must provide the
  environmental documentation to the department; and
               (3)  the environmental documents must meet the approval
  of the United States Department of Transportation, Federal Highway
  Administration, if the project requires the approval of that
  agency.
         SECTION 1.14.  Section 201.802, Transportation Code, is
  amended to read as follows:
         Sec. 201.802.  PUBLIC ACCESS TO COMMISSION [AND TO
  DEPARTMENT PROGRAMS].  [(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].
         [(b)     The director shall prepare and maintain a written plan
  that describes the manner in which a person who does not speak
  English or who has a physical, mental, or developmental disability
  is provided reasonable access to the department's programs.
         [(c)     The department shall comply with each applicable law of
  the United States or this state that relates to program or facility
  accessibility.]
         SECTION 1.15.  Subchapter K, Chapter 201, Transportation
  Code, is amended by adding Section 201.910 to read as follows:
         Sec. 201.910.  MEMORIAL MARKERS FOR CERTAIN PEACE OFFICERS
  AND SPECIAL INVESTIGATORS KILLED IN LINE OF DUTY. (a) The
  commission by rule shall allow the placement, along state highway
  right-of-way, of privately funded memorials honoring peace
  officers and special investigators who were killed in the line of
  duty and were not troopers of the Department of Public Safety.
         (b)  The rules adopted under Subsection (a) must be
  substantially identical to commission rules relating to the
  placement of privately funded memorials honoring Department of
  Public Safety troopers killed in the line of duty.
         (c)  In this section:
               (1)  "Peace officer" has the meaning assigned by
  Article 2.12, Code of Criminal Procedure.
               (2)  "Special investigator" has the meaning assigned by
  Article 2.122, Code of Criminal Procedure.
         SECTION 1.16.  Section 201.0545, Transportation Code, is
  repealed.
         SECTION 1.17.  (a)  Subtitle A, Title 6, Transportation
  Code, is amended by adding Chapter 205 to read as follows:
  CHAPTER 205. TRANSPORTATION LEGISLATIVE OVERSIGHT COMMITTEE
         Sec. 205.001.  DEFINITION. In this chapter, "committee"
  means the Transportation Legislative Oversight Committee.
         Sec. 205.002.  ESTABLISHMENT; COMPOSITION.  (a)  The
  Transportation Legislative Oversight Committee is established to
  provide objective research, analysis, and recommendations on the
  operation and needs of the state transportation system.
         (b)  The committee is composed of six members as follows:
               (1)  the chair of the Senate Committee on
  Transportation and Homeland Security;
               (2)  the chair of the House Committee on
  Transportation;
               (3)  two members of the senate appointed by the
  lieutenant governor; and
               (4)  two members of the house of representatives
  appointed by the speaker of the house of representatives.
         (c)  An appointed member of the committee serves at the
  pleasure of the appointing official.
         Sec. 205.003.  PRESIDING OFFICER; TERM. (a)  The lieutenant
  governor and the speaker of the house of representatives shall
  appoint the presiding officer of the committee on an alternating
  basis.
         (b)  The presiding officer of the committee serves a two-year
  term that expires February 1 of each odd-numbered year.
         Sec. 205.004.  POWERS AND DUTIES.  (a)  The committee shall:
               (1)  monitor the department's planning, programming,
  and funding of the state transportation system;
               (2)  conduct an in-depth analysis of the state
  transportation system that includes:
                     (A)  an assessment of the cost-effectiveness of
  the use of state, local, and private funds in the transportation
  system;
                     (B)  an identification of critical problems in the
  transportation system, such as funding constraints; and
                     (C)  a determination of the long-range needs of
  the transportation system;
               (3)  recommend to the legislature:
                     (A)  strategies to solve the problems identified
  under Subdivision (2)(B); and
                     (B)  policy priorities to address the long-range
  needs determined under Subdivision (2)(C); and
               (4)  advise and assist the legislature in developing
  plans, programs, and proposed legislation to improve the
  effectiveness of the state transportation system.
         (b)  The committee has all other powers and duties provided
  to a special committee by:
               (1)  Subchapter B, Chapter 301, Government Code;
               (2)  the rules of the senate and the house of
  representatives; and
               (3)  policies of the senate and house committees on
  administration.
         (c)  Notwithstanding any other provision of this chapter,
  the committee may not recommend specific projects or recommend
  funding for specific projects.
         Sec. 205.005.  REVIEW OF RESEARCH PROGRAM.  (a)  The
  department shall present the department's entire research program
  to the committee for review and comment before adopting or
  implementing the program.
         (b)  The committee shall review and comment on the
  department's research program, including each of the individual
  research projects and activities.  The review of a proposed
  research project must take into consideration the purpose of the
  project, the proposed start and ending dates for the project, and
  the cost of the project.
         (c)  The department shall provide to the committee quarterly
  updates and an annual summary on the progress of the department's
  research projects and activities.
         (d)  The committee may request the results of any of the
  department's research projects, including draft reports from the
  department or the contracted entities performing the research.
         (e)  A university transportation research program in this
  state may:
               (1)  perform transportation research projects
  requested by the committee; and
               (2)  initiate and propose transportation research
  projects to the committee.
         (f)  The committee may request assistance from a university
  transportation research program in this state in conducting
  transportation research and in reviewing, evaluating, and
  comparing elements of the state transportation system to the
  transportation systems in other states to set needed benchmarks.
         Sec. 205.006.  CONTRACT WITH CONSULTING FIRM.  (a)  The
  committee may contract with an outside management consulting firm
  that is independent of the department to make recommendations
  regarding an effective and efficient organizational structure for
  the department, such as recommending appropriate performance
  measurements and staffing levels for each major function of the
  department including comparisons to best practices, after review
  and analysis under Section 205.007.
         (b)  In performing its functions, the consulting firm shall
  coordinate with the Legislative Budget Board, the state auditor's
  office, and the department to minimize the duplication of efforts
  and to perform cost effectively and in a timely manner.
         (c)  The committee shall:
               (1)  oversee the implementation of the recommendations
  under this section with the goal of making the department more
  efficient, transparent, and accountable, including through
  reducing staff and streamlining processes; and
               (2)  assess the department's progress in implementing
  the recommendations under this section and report on the progress
  to the Senate Finance Committee and House Appropriations Committee
  for consideration in establishing the department's budget as part
  of the appropriations process.
         Sec. 205.007.  FUNCTIONS OF CONSULTING FIRM.  The primary
  functions of a management consulting firm the committee contracts
  with under Section 205.006 include:
               (1)  evaluating the department's financial condition
  and business practices;
               (2)  evaluating the department's administrative
  practices and performance, including statewide transportation
  planning, the department's relationship with metropolitan planning
  organizations, as defined by Section 472.031, the performance of
  the department's district and central offices, and the need for
  standardization of the department's operations across the state;
               (3)  evaluating the current guidelines of metropolitan
  planning organizations and all other transportation entities
  within the state involved with project delivery or transportation
  policy by identifying duplicative practices and providing
  recommendations for better efficiency and transparency;
               (4)  identifying ways to streamline all processes and
  procedures of policy implementations of the department, including
  the environmental process;
               (5)  examining and evaluating the use and benefits of
  performance-based maintenance contracting by the department;
               (6)  examining and presenting recommendations on how to
  maximize the department's use of multimodal solutions;
               (7)  analyzing the department's compliance with
  applicable laws and legislative intent;
               (8)  examining the efficient use of the department's
  available funding, personnel, equipment, and office space;
               (9)  evaluating the establishment in statute of a state
  pavement quality goal of having 85 percent of state roads in good or
  better condition; and
               (10)  considering significantly expanding the use of
  the private sector for planning, design, and delivery of projects
  and a commitment to excellence in project and program management.
         Sec. 205.008.  MEETINGS. The committee shall meet at the
  call of the presiding officer.
         Sec. 205.009.  STAFF; AUTHORITY TO CONTRACT. The committee
  may hire staff or may contract with universities or other suitable
  entities to assist the committee in carrying out the committee's
  duties. Funding to support the operation of the committee shall be
  provided from funds appropriated to the department.
         Sec. 205.010.  REPORT. Not later than January 1 of each
  odd-numbered year, the committee shall submit to the legislature a
  report that contains the recommendations described by Section
  205.004(a)(3).
         (b)  The speaker of the house of representatives and the
  lieutenant governor shall appoint members to the Transportation
  Legislative Oversight Committee under Chapter 205, Transportation
  Code, as added by this section, not later than January 1, 2010.
         (c)  Notwithstanding Section 205.003, Transportation Code,
  as added by this section, the lieutenant governor, not later than
  January 15, 2010, shall appoint a presiding officer for the
  Transportation Legislative Oversight Committee. The presiding
  officer appointed by the lieutenant governor under this section
  serves a one-year term that begins on February 1, 2010, and ends on
  February 1, 2011.
         (d)  On the effective date of this Act:
               (1)  all employees of the Texas Department of
  Transportation who primarily perform duties related to the
  department's government and public affairs research section become
  employees of the Transportation Legislative Oversight Committee
  under Chapter 205, Transportation Code, as added by this section;
  and
               (2)  all funds appropriated by the legislature to the
  Texas Department of Transportation for purposes related to the
  department's government and public affairs research section are
  transferred to the Transportation Legislative Oversight Committee
  under Chapter 205, Transportation Code, as added by this section.
         SECTION 1.18.  Subchapter Z, Chapter 311, Transportation
  Code, is amended by adding Section 311.905 to read as follows:
         Sec. 311.905.  NOTICE OF TRANSPORTATION USER'S FEE BY
  MUNICIPALITY.  (a)  A municipality that imposes a fee on the user of
  a benefited property equal to the prorated annual cost of the
  transportation system owned by the municipality that can reasonably
  be attributed to the benefited property must provide notice to the
  department and the user of the fee.
         (b)  The notice to the department shall be given to the
  executive director by any commercially acceptable form of business
  communication. The notice to the user required under Subsection
  (a) is adequate if the fee amount is stated on monthly billing
  statements to the user for metered utility service provided by the
  municipality to the user.
  ARTICLE 2. TRANSPORTATION PLANNING AND PROJECT DEVELOPMENT PROCESS
         SECTION 2.01.  Section 201.601, Transportation Code, is
  amended to read as follows:
         Sec. 201.601.  STATEWIDE TRANSPORTATION 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 2.02.  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;
                     (B)  a rural planning organization; or
                     (C)  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)  "Rural planning organization" means a planning
  organization created under Section 201.653.
               (5)  "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.
               (6)  "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 planning organizations and public transit operators as
  guided by the planning factors identified in state and federal law.
         Sec. 201.653.  RURAL PLANNING ORGANIZATIONS. (a) To carry
  out the transportation planning process required by this
  subchapter, a rural planning organization may be created to serve
  an area that is located in the boundaries of a council of government
  and outside the boundaries of a metropolitan planning organization
  if the governing bodies of the units of local government in which at
  least 75 percent of the population of the area resides each adopt a
  resolution agreeing 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 in which the area is located.
         (c)  For a rural planning organization to be eligible to
  receive funds from this state for transportation projects under
  Section 201.668:
               (1)  at least 75 percent of the organization's board
  members must be elected officials who are elected within the
  boundaries of the rural planning organization; and
               (2)  only elected officials may be voting members of
  the organization's board.
         (d)  A rural planning organization may be dissolved by
  official action of its board.
         (e)  As soon as practicable after a rural planning
  organization is created or dissolved, the organization shall send
  notice of its creation or dissolution to the commission.
         (f)  The department may use money in the state highway fund
  to fund the operations of a rural planning organization, subject to
  Section 201.672(c).
         (g)  A rural planning organization shall develop
  transportation plans and programs for its service area in
  accordance with this subchapter.
         (h)  A rural planning organization may provide to the
  commission recommendations concerning the selection of
  transportation projects, systems, or programs to be undertaken in
  the boundaries of the rural planning organization.
         (i)  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.
         (j)  If the rural planning organization does not provide
  recommendations under Subsection (h), the department shall seek
  input from the rural planning organization, municipal and county
  officials, and transportation officials to determine the
  transportation projects, systems, or programs to be undertaken in
  the boundaries of the rural planning organization.
         Sec. 201.654.  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. 201.655.  ALLOCATION AND DEPOSIT OF FUNDING.  (a)  The
  commission shall use the cash flow forecast under Section 201.654
  to allocate funding to the planning organizations in accordance
  with Section 201.668.
         (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. 201.656.  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. 201.657.  COORDINATION BETWEEN PLANNING ORGANIZATIONS
  TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS.  Planning organizations
  shall collaborate with one another and 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.
         Sec. 201.658.  PLANNING ORGANIZATION PROJECT SELECTION AND
  PRIORITIZATION.  (a)  Each metropolitan planning organization and
  rural 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 or rural 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.
         (c)  A metropolitan planning organization or rural planning
  organization may delegate authority to select any category of
  projects and order them in priority to the applicable department
  district.
         Sec. 201.659.  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. 201.660.  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 201.656.
         (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. 201.661.  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. 201.662.  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(5).
         Sec. 201.663.  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 201.654.
  Adjustments to the plan may not be made more than semiannually,
  unless there are substantial increases or decreases in available
  funding.
         Sec. 201.664.  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. 201.665.  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
  201.654;
               (3)  the regions' allocations of funds;
               (4)  the projects selected by the planning organization
  under Section 201.658; and
               (5)  the work plan required by Section 201.674.
         (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 201.663.
         Sec. 201.666.  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. 201.667.  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 201.807.
         Sec. 201.668.  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, including funding for
  statewide connectivity projects. The commission shall adopt rules
  for all transportation formulas.
         Sec. 201.669.  USE OF ALLOCATED FUNDS.  The funds allocated
  to a planning organization under Section 201.668 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 201.672.
         Sec. 201.670.  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
  201.668.
         Sec. 201.671.  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. 201.672.  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.
         (c)  A rural planning organization 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 $1 million or 10
  percent of the planning organization's total allocated funds.
         Sec. 201.673.  COMMISSION EMERGENCY AND ECONOMIC
  DEVELOPMENT FUNDS. (a) Notwithstanding Section 201.655(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 201.669.
         (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. 201.674.  DEPARTMENT 10-YEAR BUSINESS WORK PLAN. On
  completion of the 10-year transportation plan in Section 201.656,
  the department shall use the prioritized 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. 201.675.  WORK PROGRAM. (a)  Each department district
  shall develop a consistently formatted work program based on the
  department 10-year business work plan covering a period of four
  years that contains all projects that the district proposes to
  implement during that period.
         (b)  The department shall use the work program to:
               (1)  monitor the performance of the district; and
               (2)  evaluate the performance of district employees.
         (c)  The department shall publish the work program in
  appropriate media and on the department's Internet website.
         Sec. 201.676.  STATEWIDE CONNECTIVITY PLAN AND PROJECTS. (a)
  The department shall work with planning organizations to develop a
  statewide connectivity plan.
         (b)  The department by rule shall:
               (1)  establish criteria for designating a project as a
  statewide connectivity project; and
               (2)  develop benchmarks for evaluating the progress of
  a statewide connectivity project and timelines for implementation
  and construction of a statewide connectivity project.
         (c)  The department annually shall update the list of
  projects that are designated as statewide connectivity projects.
         (d)  The commission shall adopt the statewide connectivity
  plan.
         Sec. 201.677.  PAVEMENT MANAGEMENT INFORMATION SYSTEM. (a)
  The department shall measure the condition of the pavement for each
  highway under the jurisdiction of the department.
         (b)  The department shall establish a system that makes the
  information collected under Subsection (a) available to the
  planning organizations for use in determining transportation
  projects.
         Sec. 201.678.  FINALIZED BIENNIAL PROJECT PLAN.  In addition
  to the plan required by Section 201.674 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. 201.679.  PERFORMANCE MEASURES FOR BIENNIAL PROJECT
  PLAN.  (a)  The department shall develop a set of performance
  measures for the plan under Section 201.678 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 Transportation
  Legislative Oversight Committee in developing the performance
  measures under Chapter 205. This subsection expires August 31,
  2013.
         Sec. 201.680.  PERFORMANCE REVIEW. Not later than December
  1 of each odd-numbered year, the commission shall review the
  performance of the department's duties under Section 201.678 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 201.679(a), statewide and by department district,
  and a status report on each major project under development.
         SECTION 2.03.  Subchapter J, Chapter 201, Transportation
  Code, is amended by adding Sections 201.807, 201.808, and 201.809
  to read as follows:
         Sec. 201.807.  PROJECT INFORMATION REPORTING SYSTEM. (a)  
  The department shall establish a project information reporting
  system that makes available in a central location on the
  department's Internet website easily accessible and searchable
  information to enable the tracking of project development and the
  expenditure of funds in the department's statewide transportation
  program and budget. The project information reporting system shall
  contain information about:
               (1)  each 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);
               (2)  each construction work zone for a project that has
  a construction phase timeline that exceeds one month or the cost of
  which exceeds $5 million, including information about:
                     (A)  the number of lanes that will remain open
  during the project's construction phase;
                     (B)  the location and duration of each lane
  closure; and
                     (C)  the expected and actual traffic delay
  resulting from each lane closure;
               (3)  road maintenance projects, including:
                     (A)  the criteria for designating a project as a
  road maintenance project; and
                     (B)  the condition of each road before the road
  maintenance project; and
               (4)  the department's funds, including each source for
  the department's funds and each expenditure made by the department
  reported by each:
                     (A)  department district;
                     (B)  program funding category; and
                     (C)  type of revenue, including revenue from a
  comprehensive development agreement or a toll project.
         (b)  The department shall develop an interactive web-based
  system for the tracking of planning organization allocations and
  projects under Subchapter H-1.  The planning organizations shall be
  granted access to the system through a secure site to input
  information regarding projects and the associated project costs.  
  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)  In developing the project information reporting system,
  the department shall collaborate with:
               (1)  the legislature;
               (2)  planning organizations, as defined by Section
  201.651; 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 statewide transportation program and
  budget to determine the completion rates of the projects and
  whether the projects were completed on time.
         (f)  The department shall continuously update the
  information contained in the project information reporting system.
         Sec. 201.808.  TRANSPORTATION EXPENDITURE PRIORITIES. (a)  
  The department shall develop a process to identify and distinguish
  between the transportation projects that are required to  maintain
  the state infrastructure and the transportation projects that would
  improve the state infrastructure.
         (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;
               (2)  information about the condition of the pavement
  for each highway under the jurisdiction of the department,
  including:
                     (A)  the international roughness index issued by
  the United States Department of Transportation Federal Highway
  Administration; and
                     (B)  the percentage of pavement that the
  department determines to be in good or better condition;
               (3)  the condition of bridges, including information
  about:
                     (A)  bridges that are structurally deficient or
  functionally obsolete; and
                     (B)  bridge deterioration scores;
               (4)  information about traffic congestion and traffic
  delays, including:
                     (A)  the locations of the worst traffic delays;
                     (B)  the variable travel time for major streets
  and highways in this state; and
                     (C)  the effect of traffic congestion on motor
  vehicle travel and motor carriers; and
               (5)  information about the number of traffic accidents,
  injuries, and fatalities, including a list of the locations in each
  department district for the highest number of traffic accidents,
  injuries, or fatalities.
         (d)  The department shall provide the information made
  available under Subsection (c) in a format that allows a person to
  conduct electronic searches for information regarding a specific
  county, highway under the jurisdiction of the department, or class
  of road.
         (e)  Each department district or planning organization, as
  that term is defined by Section 201.651, shall enter information
  into the transportation expenditure reporting system, including
  information about each project and the priority of each project.
         (f)  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.  DEPARTMENT INFORMATION CONSOLIDATION. 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.
         SECTION 2.04.  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 201.668.
         SECTION 2.05.  Section 222.105, Transportation Code, is
  amended to read as follows:
         Sec. 222.105.  PURPOSES.  The purposes of Sections 222.106
  and 222.107 are to:
               (1)  promote public safety;
               (2)  facilitate the improvement, development, or
  redevelopment of property;
               (3)  facilitate the movement of traffic; and
               (4)  enhance a local entity's ability to sponsor a
  transportation project authorized under Section 222.104.
         SECTION 2.06.  Section 222.106, Transportation Code, is
  amended by amending Subsections (b), (c), (g), (h), (i), (j), (k),
  and (l) and adding Subsections (i-1) and (i-2) to read as follows:
         (b)  This section applies only to a municipality in which a
  transportation project is to be developed [the governing body of
  which intends to enter into an agreement with the department] under
  Section 222.104.
         (c)  If the governing body determines an area to be
  unproductive and underdeveloped and that action under this section
  will further the purposes stated in Section 222.105, the governing
  body of the municipality by ordinance may designate a contiguous
  geographic area in the jurisdiction of the municipality to be a
  transportation reinvestment zone to promote a transportation
  project [described by Section 222.104 that cultivates development
  or redevelopment of the area].
         (g)  The ordinance designating an area as a transportation
  reinvestment zone must:
               (1)  describe the boundaries of the zone with
  sufficient definiteness to identify with ordinary and reasonable
  certainty the territory included in the zone;
               (2)  provide that the zone takes effect immediately on
  passage of the ordinance;
               (3)  assign a name to the zone for identification, with
  the first zone designated by a municipality designated as
  "Transportation Reinvestment Zone Number One, (City or Town, as
  applicable) of (name of municipality)," and subsequently
  designated zones assigned names in the same form, numbered
  consecutively in the order of their designation;
               (4)  designate the base year for purposes of
  establishing the tax increment base of the municipality;
               (5)  establish an ad valorem tax increment account for
  the zone; and
               (6) [(5)]  contain findings that promotion of the
  transportation project will cultivate the improvement,
  development, or redevelopment of the zone.
         (h)  From taxes collected on property in a zone, the
  municipality shall pay into the tax increment account for the zone
  [an amount equal to] the tax increment produced by the
  municipality, less any amount allocated under previous agreements,
  including agreements under Chapter 380, Local Government Code, or
  Chapter 311, Tax Code.
         (i)  All or the portion specified by the municipality of the
  money deposited to a tax increment account must be used to fund the
  transportation project for which the zone was designated, as well
  as aesthetic improvements within the zone. Any remaining money
  deposited to the tax increment account may be used for other
  purposes as determined by the municipality [Money deposited to a
  tax increment account must be used to fund projects authorized
  under Section 222.104, including the repayment of amounts owed
  under an agreement entered into under that section].
         (i-1)  The governing body of a municipality may contract with
  a public or private entity to develop, redevelop, or improve a
  transportation project in a transportation reinvestment zone and
  may pledge and assign all or a specified amount of money in the tax
  increment account to that entity. After a pledge or assignment is
  made, if the entity that received the pledge or assignment has
  itself pledged or assigned that amount to secure bonds or other
  obligations issued to obtain funding for the transportation
  project, the governing body of the municipality may not rescind its
  pledge or assignment until the bonds or other obligations secured
  by the pledge or assignment have been paid or discharged.
         (i-2)  To accommodate changes in the limits of the project
  for which a reinvestment zone was designated, the boundaries of a
  zone may be amended at any time, except that property may not be
  removed or excluded from a designated zone if any part of the tax
  increment account has been assigned or pledged directly by the
  municipality or through another entity to secure bonds or other
  obligations issued to obtain funding of the project, and property
  may not be added to a designated zone unless the governing body of
  the municipality complies with Subsections (e) and (g).
         (j)  Except as provided by Subsections (i-1) and
  [Subsection] (k), a transportation reinvestment zone terminates on
  December 31 of the year in which the municipality completes
  [complies with] a contractual requirement, if any, that included
  the pledge or assignment of all or a portion of money deposited to a
  tax increment account or the repayment of money owed under an [the]
  agreement for development, redevelopment, or improvement of the
  project for [under Section 222.104 in connection with] which the
  zone was designated.
         (k)  A transportation reinvestment zone terminates on
  December 31 of the 10th year after the year the zone was designated,
  if before that date the municipality has not entered into a contract
  described in Subsection (i-1) or otherwise not used the zone for the
  purpose for which it was designated.
         (l)  Any surplus remaining in a tax increment account on
  termination of a zone may be used for other purposes as determined
  by [transportation projects of] the municipality [in or outside of
  the zone].
         SECTION 2.07.  The heading to Section 222.107,
  Transportation Code, is amended to read as follows:
         Sec. 222.107.  COUNTY TRANSPORTATION REINVESTMENT ZONES[;
  TAX ABATEMENTS; ROAD UTILITY DISTRICTS].
         SECTION 2.08.  Section 222.107, Transportation Code, is
  amended by amending Subsections (b), (c), (e), (f), (h), (i), (k),
  and (l) and adding Subsections (h-1) and (k-1) to read as follows:
         (b)  This section applies only to a county in which a
  transportation project is to be developed [the commissioners court
  of which intends to enter into a pass-through toll agreement with
  the department] under Section 222.104.
         (c)  The commissioners court of the county, after
  determining that an area is unproductive and underdeveloped and
  that action under this section would further the purposes described
  by Section 222.105, by order or resolution may designate a
  contiguous geographic area in the jurisdiction of the county to be a
  transportation reinvestment zone to promote a transportation
  project [described by Section 222.104 that cultivates development
  or redevelopment of the area] and for the purpose of abating ad
  valorem taxes or granting other relief from taxes imposed by the
  county on real property located in the zone.
         (e)  Not later than the 30th day before the date the
  commissioners court proposes to designate an area as a
  transportation reinvestment zone under this section, the
  commissioners court must hold a public hearing on the creation of
  the zone, its benefits to the county and to property in the proposed
  zone, and the abatement of ad valorem taxes or the grant of other
  relief from ad valorem taxes imposed by the county on real property
  located in the zone.  At the hearing an interested person may speak
  for or against the designation of the zone, its boundaries, or the
  abatement of or the relief from county taxes on real property in the
  zone.  Not later than the seventh day before the date of the
  hearing, notice of the hearing and the intent to create a zone must
  be published in a newspaper having general circulation in the
  county.
         (f)  The order or resolution designating an area as a
  transportation reinvestment zone must:
               (1)  describe the boundaries of the zone with
  sufficient definiteness to identify with ordinary and reasonable
  certainty the territory included in the zone;
               (2)  provide that the zone takes effect immediately on
  adoption of the order or resolution; [and]
               (3)  assign a name to the zone for identification, with
  the first zone designated by a county designated as "Transportation
  Reinvestment Zone Number One, County of (name of county)," and
  subsequently designated zones assigned names in the same form
  numbered consecutively in the order of their designation; and
               (4)  designate the base year for purposes of
  establishing the tax increment base of the county.
         (h)  The commissioners court by order or resolution may enter
  into an agreement with the owner of any real property located in the
  transportation reinvestment zone to abate all or a portion of the ad
  valorem taxes or to grant other relief from the taxes imposed by the
  county on the owner's property in an amount not to exceed the amount
  calculated under Subsection (a)(1) for that year.  All abatements
  or other relief granted by the commissioners court in a
  transportation reinvestment zone must be equal in rate.  In the
  alternative, the commissioners court by order or resolution may
  elect to abate a portion of the ad valorem taxes or otherwise grant
  relief from the taxes imposed by the county on all real property
  located in the zone.  In any ad valorem tax year, the total amount
  of the taxes abated or the total amount of relief granted under this
  section may not exceed the amount calculated under Subsection
  (a)(1) for that year, less any amounts allocated under previous
  agreements, including agreements under Chapter 381, Local
  Government Code, or Chapter 312, Tax Code.
         (h-1)  To further the development of the transportation
  project for which the transportation reinvestment zone was
  designated, a county may assess all or part of the cost of the
  transportation project against property within the zone. The
  assessment against each property in the zone may be levied and
  payable in installments in the same manner as provided by Sections
  372.016-372.018, Local Government Code, provided that the
  installments do not exceed the total amount of the tax abatement or
  other relief granted under Subsection (h). The county may elect to
  adopt and apply the provisions of Sections 372.015-372.020 and
  372.023, Local Government Code, to the assessment of costs and
  Sections 372.024-372.030, Local Government Code, to the issuance of
  bonds by the county to pay the cost of a transportation project. The
  commissioners court of the county may contract with a public or
  private entity to develop, redevelop, or improve a transportation
  project in the transportation reinvestment zone, including
  aesthetic improvements, and may pledge and assign to that entity
  all or a specified amount of the revenue the county receives from
  installment payments of the assessments for the payment of the
  costs of that transportation project. After a pledge or assignment
  is made, if the entity that received the pledge or assignment has
  itself pledged or assigned that amount to secure bonds or other
  obligations issued to obtain funding for the transportation
  project, the commissioners court of the county may not rescind its
  pledge or assignment until the bonds or other obligations secured
  by the pledge or assignment have been paid or discharged. Any
  amount received from installment payments of the assessments not
  pledged or assigned in connection with the transportation project
  may be used for other purposes associated with the transportation
  project or in the zone.
         (i)  In the alternative, to [To] assist the county in
  developing a transportation project [authorized under Section
  222.104], if authorized by the commission under Chapter 441, a road
  utility district may be formed under that chapter that has the same
  boundaries as a transportation reinvestment zone created under this
  section.
         (k)  A road utility district formed as provided by Subsection
  (i) may enter into an agreement [with the county to assume the
  obligation, if any, of the county] to fund development of a project
  [under Section 222.104] or to repay funds owed to the department
  [under Section 222.104].  Any amount paid for this purpose is
  considered to be an operating expense of the district.  Any taxes
  collected by the district that are not paid for this purpose may be
  used for any district purpose.
         (k-1)  To accommodate changes in the limits of the project
  for which a reinvestment zone was designated, the boundaries of a
  zone may be amended at any time, except that property may not be
  removed or excluded from a designated zone if any part of the
  assessment has been assigned or pledged directly by the county or
  through another entity to secure bonds or other obligations issued
  to obtain funding of the project, and property may not be added to a
  designated zone unless the governing body of the municipality
  complies with Subsections (e) and (f).
         (l)  Except as provided by Subsection (m), a tax abatement
  agreement entered into under Subsection (h), or an order or
  resolution on the abatement of taxes or the grant of relief from
  taxes under that subsection, terminates on December 31 of the year
  in which the county completes any contractual requirement that
  included the pledge or assignment of assessments [of money]
  collected under this section.
         SECTION 2.09.  Subchapter E, Chapter 222, Transportation
  Code, is amended by adding Sections 222.108 and 222.109 to read as
  follows:
         Sec. 222.108.  TRANSPORTATION REINVESTMENT ZONES FOR OTHER
  TRANSPORTATION PROJECTS. (a) Notwithstanding the requirement in
  Sections 222.106(b) and 222.107(b) that a transportation
  reinvestment zone be established in connection with a project under
  Section 222.104, a municipality or county may establish a
  transportation reinvestment zone for any transportation project.
  If all or part of the transportation project is subject to oversight
  by the department, at the option of the governing body of the
  municipality or county, the department shall delegate full
  responsibility for the development, design, letting of bids, and
  construction of the project, including project oversight and
  inspection, to the municipality or county provided that the
  commission or department may take any action that in its reasonable
  judgment is necessary to comply with any federal requirement to
  enable this state to receive federal-aid highway funds.
         (b)  A transportation project developed under Subsection (a)
  that is on the state highway system must comply with state design
  criteria unless the department grants an exception to the
  municipality or county.
         (c)  In this section, "transportation project" has the
  meaning assigned by Section 370.003.
         Sec. 222.109.  REDUCTION PROHIBITED. (a) A municipality or
  county may not be penalized with a reduction in traditional
  transportation funding because of the designation and use of a
  transportation reinvestment zone under this chapter. Any funding
  from the department identified for a project before the date that a
  transportation reinvestment zone is designated may not be reduced
  because the transportation reinvestment zone is designated in
  connection with that project.
         (b)  The department may not reduce any allocation of
  traditional transportation funding to any of its districts because
  a district contains a municipality or county that contains a
  transportation reinvestment zone designated under this chapter.
         SECTION 2.10.  (a)  Section 223.041, Transportation Code, is
  amended by adding Subsections (c), (d), (e), and (f) to read as
  follows:
         (c)  Of the positions paid out of funds appropriated to the
  department for the planning, design, and management of
  transportation projects in the General Appropriations Act
  (Strategy A.1.1., or its successor), the department may fill only
  one of every five positions until staffing levels are reduced by 40
  percent from the level existing as of August 31, 2009, or to a level
  not to exceed 2,500 positions, with commensurate reductions in
  associated administrative costs.
         (d)  The department shall report to the Legislative Budget
  Board not later than September 1 of each year on the department's
  progress in achieving the goal set by Subsection (c).
         (e)  The Legislative Budget Board may modify the
  requirements of Subsection (c) if, after a study by the State
  Council on Competitive Government, the board finds that it is not
  possible for the department to obtain services from the private
  sector on a cost-effective basis. A study conducted under this
  section must:
               (1)  analyze the full costs of the department's total
  plan/design/manage function, with indirect costs allocated in
  proportion to chargeable salaries in a manner comparable to private
  providers;
               (2)  analyze the department's historic costs of
  procuring services from private sector providers, including the
  costs of comprehensive project delivery services;
               (3)  review and analyze the costs that other public
  entities have for procuring project delivery and engineering
  services from private sector providers for large-scale
  construction projects; and
               (4)  review and make recommendations regarding
  engineering management practices used by other public entities that
  could improve the efficiency of the department's project delivery
  and engineering management system.
         (f)  If the Legislative Budget Board makes a request for a
  study under Subsection (e), the costs of the study shall be paid by
  the department through interagency contract. The study shall be
  managed by the State Council on Competitive Government but may be
  performed by an independent contractor.
         SECTION 2.11.  Section 222.053, Transportation Code, is
  amended by amending Subsection (b) and adding Subsection (i) to
  read as follows:
         (b)  Except as provided by Subsections [Subsection] (c) and
  (i), the commission may require, request, or accept from a
  political subdivision matching or other local funds,
  rights-of-way, utility adjustments, additional participation,
  planning, documents, or any other local incentives to make the most
  efficient use of its highway funding.
         (i)  The commission may waive, from a political subdivision,
  matching or other local funds, rights-of-way, utility adjustments,
  additional participation, planning, documents, or any other local
  incentives for a designated Texas Highway Trunk System project
  located in:
               (1)  a county with a population of less than 5,000; or
               (2)  a county with a population of 5,000 or more but
  less than 15,000 if the project is part of a high priority corridor
  on the national highway system identified under Section 1105 of the
  Intermodal Surface Transportation Efficiency Act of 1991 (Pub. L.
  No. 102-240) or other federal legislation.
         SECTION 2.12.  (a) Subchapter D, Chapter 472, Transportation
  Code, is amended by adding Sections 472.0311 through 472.0316 and
  472.035 through 472.046 to read as follows:
         Sec. 472.0311.  PURPOSE. (a) The metropolitan
  transportation planning process described by this subchapter is
  intended to:
               (1)  encourage and promote the safe and efficient
  management, operation, and development of surface transportation
  systems to serve the mobility needs of people and freight;
               (2)  foster economic growth and development in and
  through urbanized areas of this state; and
               (3)  minimize transportation-related fuel consumption,
  air pollution, and greenhouse gas emissions.
         (b)  To accomplish the objectives under Subsection (a),
  metropolitan planning organizations shall develop, in cooperation
  with this state and public transit operators, transportation plans
  and programs for metropolitan areas in this state.
         (c)  The plans and programs for each metropolitan area must
  provide for the development and integrated management and operation
  of transportation systems and facilities, including pedestrian
  walkways and bicycle transportation facilities that will function
  as an intermodal transportation system for the metropolitan area.
         (d)  The process for developing plans and programs under this
  subchapter shall provide for consideration of all modes of
  transportation and be continuing, cooperative, and comprehensive,
  to the degree appropriate, based on the complexity of the
  transportation issues to be addressed.
         (e)  To ensure that the process is integrated with the
  statewide planning process, metropolitan planning organizations
  shall develop plans and programs that identify transportation
  facilities that should function as an integrated metropolitan
  transportation system and give emphasis to facilities that serve
  important national, state, and regional transportation functions.
         Sec. 472.0312.  DESIGNATION AND BOUNDARIES. (a) A
  metropolitan planning organization must be designated or
  redesignated in accordance with, and its boundaries determined by,
  23 U.S.C. Section 134.
         (b)  Each designated metropolitan planning organization
  must be fully operational not later than the 180th day after the
  date of its designation.
         Sec. 472.0313.  POLICY BOARD OFFICERS. (a)  Each policy
  board shall designate, at a minimum, a presiding officer, an
  assistant presiding officer, and a secretary.
         (b)  The policy board shall select from among its members the
  presiding officer and assistant presiding officer.
         (c)  The secretary of the policy board shall prepare meeting
  minutes and maintain board records. The secretary may be a member of
  the policy board, an employee of the metropolitan planning
  organization, or any other individual.
         Sec. 472.0314.  OPEN MEETINGS. A policy board is subject to
  Chapter 551, Government Code.
         Sec. 472.0315.  POLICY BOARD MEMBERSHIP AND VOTING
  REQUIREMENTS; ELIGIBILITY FOR STATE ALLOCATION OF FUNDING. (a) To
  be eligible to receive funds from this state for transportation
  projects under Section 201.668:
               (1)  at least 75 percent of a metropolitan planning
  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 so as to
  become eligible to receive an allocation of funds under Section
  201.668.
         (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.
         Sec. 472.0316.  REPRESENTATION OF TRANSPORTATION-RELATED
  ENTITIES.  (a)  In metropolitan areas in which authorities or other
  agencies have been or may be created by law to perform
  transportation functions and are performing transportation
  functions that are not under the jurisdiction of a municipality or
  county represented on the metropolitan planning organization, the
  authorities or other agencies may be provided voting membership on
  the policy board.
         (b)  In all other metropolitan planning organizations in
  which transportation authorities or agencies are to be represented
  by elected officials from a municipality or county, the
  organization shall establish a process by which the collective
  interests of such authorities or other agencies are expressed and
  conveyed.
         Sec. 472.035.  POWERS, DUTIES, AND RESPONSIBILITIES. (a)
  The powers, duties, and responsibilities of a metropolitan planning
  organization are those specified in this subchapter or incorporated
  in an interlocal agreement entered into to implement this
  subchapter.
         (b)  Each metropolitan planning organization shall perform
  all acts required by applicable federal or state law or rules that
  are necessary to qualify for federal aid.
         Sec. 472.036.  PLANNING.  (a)  To the extent permitted by
  state or federal law, a metropolitan planning organization shall:
               (1)  be involved in the planning and programming of
  transportation facilities, including airports, intermunicipal and
  high-speed rail lines, seaports, and intermodal facilities; and
               (2)  in cooperation with the department, develop:
                     (A)  a long-range transportation plan as required
  by Section 472.042;
                     (B)  an annually updated transportation
  improvement program as required by Section 472.043; and
                     (C)  an annual unified planning work program as
  required by Section 472.044.
         (b)  In developing the long-range transportation plan and
  the transportation improvement program under Subsection (a), each
  metropolitan planning organization shall consider projects and
  strategies that will:
               (1)  support the economic vitality of the metropolitan
  area, especially by enabling global competitiveness, productivity,
  and efficiency;
               (2)  increase the safety and security of the
  transportation system for motorized and nonmotorized users;
               (3)  increase the accessibility and mobility options
  available to people and for freight;
               (4)  protect and enhance the environment, promote
  energy conservation, and improve quality of life;
               (5)  enhance the integration and connectivity of the
  transportation system, across and between modes, for people and
  freight;
               (6)  promote efficient system management and
  operation; and
               (7)  emphasize the preservation of the existing
  transportation system.
         (c)  To provide recommendations to the department and local
  governmental entities regarding transportation plans and programs,
  each metropolitan planning organization shall:
               (1)  prepare a congestion management system for the
  metropolitan area and cooperate with the department in the
  development of any other transportation management system required
  by state or federal law;
               (2)  assist the department in mapping transportation
  planning boundaries required by state or federal law;
               (3)  assist the department in performing its duties
  relating to access management, functional classification of roads,
  and data collection;
               (4)  execute all agreements or certifications
  necessary to comply with applicable state or federal law;
               (5)  represent all the jurisdictional areas in the
  metropolitan area in the formulation of a transportation plan or
  program required by this subchapter; and
               (6)  perform all other duties required by state or
  federal law.
         Sec. 472.037.  TECHNICAL ADVISORY COMMITTEE. (a) Each
  metropolitan planning organization shall appoint a technical
  advisory committee whose members serve at the pleasure of the
  metropolitan planning organization.
         (b)  The membership of the technical advisory committee must
  include, if possible:
               (1)  planners;
               (2)  engineers;
               (3)  a representative of each political subdivision or
  agency or department of a political subdivision that provides
  transportation services, including, as applicable:
                     (A)  a port authority, navigation district, or
  public transit authority; or
                     (B)  a county or municipal airport or transit
  department;
               (4)  the superintendent of each school district in the
  jurisdiction of the metropolitan planning organization or a person
  designated by the superintendent; and
               (5)  other appropriate representatives of affected
  local governments.
         Sec. 472.038.  SAFE ACCESS TO SCHOOLS. (a) In addition to any
  other duty assigned to it by the metropolitan planning organization
  or by state or federal law, the technical advisory committee is
  responsible for considering safe access to schools in its review of
  transportation project priorities, long-range transportation
  plans, and transportation improvement programs and shall advise the
  metropolitan planning organization on those issues.
         (b)  The technical advisory committee shall coordinate its
  actions with local school boards and other local programs and
  organizations in the metropolitan area that participate in school
  safety activities, including locally established community traffic
  safety teams.
         (c)  A school board must provide the appropriate
  metropolitan planning organization with information concerning
  future school sites and the coordination of transportation
  services.
         Sec. 472.039.  EMPLOYEES.  (a)  Each metropolitan planning
  organization shall employ:
               (1)  an executive or staff director who reports
  directly to the organization's policy board for all matters
  regarding the administration and operation of the metropolitan
  planning organization; and
               (2)  any additional personnel the policy board
  considers necessary.
         (b)  The executive or staff director and additional
  personnel may be employed by the metropolitan planning organization
  or by another governmental entity, including a county,
  municipality, or regional planning organization that has a staff
  services agreement with the metropolitan planning organization.
         (c)  A metropolitan planning organization may enter into a
  contract with a local or state agency, private planning firm,
  private engineering firm, or other public or private entity to
  accomplish the metropolitan planning organization's transportation
  planning and programming duties and administrative functions.
         Sec. 472.040.  TRAINING.  (a)  To enhance its members'
  knowledge, effectiveness, and participation in the transportation
  planning process, a metropolitan planning organization shall
  provide training opportunities and funds for the organization's
  members.
         (b)  Training of its policy board members may be conducted by
  the metropolitan planning organization or through statewide or
  federal training programs and initiatives that are specifically
  designed to meet the needs of metropolitan planning organization
  policy board members.
         Sec. 472.041.  COORDINATION WITH OTHER ENTITIES. A
  metropolitan planning organization may join with any other
  metropolitan planning organization or an individual political
  subdivision to:
               (1)  coordinate activities; or
               (2)  achieve any federal or state transportation
  planning or development goal or purpose consistent with federal or
  state law.
         Sec. 472.042.  LONG-RANGE TRANSPORTATION PLAN.  Each
  metropolitan planning organization shall develop a long-range
  transportation plan that addresses at least a 20-year period. The
  plan must include both long-range and short-range strategies and
  comply with all other state and federal requirements.
         Sec. 472.043.  TRANSPORTATION IMPROVEMENT PROGRAM.  (a)  
  Each metropolitan planning organization shall develop annually a
  list of project priorities and a transportation improvement
  program. The prevailing principles to be considered by the
  metropolitan planning organization when developing a list are:
               (1)  preserving the existing transportation
  infrastructure;
               (2)  enhancing the economic competitiveness of this
  state; and
               (3)  improving travel choices to ensure mobility.
         (b)  The transportation improvement program may be used to
  initiate federally aided transportation facilities and
  improvements and other transportation facilities and improvements,
  including transit, rail, aviation, and port facilities.
         (c)  The transportation improvement program must be
  consistent, to the maximum extent feasible, with comprehensive
  plans of the political subdivisions the boundaries of which are in
  the metropolitan area served by the metropolitan planning
  organization.
         Sec. 472.044.  UNIFIED PLANNING WORK PROGRAM. (a) Each
  metropolitan planning organization shall develop, in cooperation
  with the department and public transit operators, a unified
  planning work program that lists all planning tasks to be
  undertaken during the program year.
         (b)  The unified planning work program must provide a
  complete description of each planning task and an estimated budget
  for that task and must comply with applicable state and federal law.
         Sec. 472.045.  APPLICATION OF FEDERAL LAW. (a) On
  notification by an agency of the federal government that a
  provision of this subchapter conflicts with a federal law or
  regulation, the federal law or regulation takes precedence to the
  extent of the conflict until the conflict is resolved.
         (b)  The department or a metropolitan planning organization
  may take any action necessary to comply with federal laws and
  regulations or to continue to remain eligible to receive federal
  funds.
         Sec. 472.046.  PUBLICATION OF INFORMATION ON INTERNET
  WEBSITE. A metropolitan planning organization shall publish
  financial information on its Internet website, including
  information regarding:
               (1)  budgeted annual revenues and expenditures;
               (2)  actual annual revenues and expenditures; and
               (3)  staffing levels.
         (b)  A metropolitan planning organization is not required to
  designate officers in accordance with Section 472.0313,
  Transportation Code, as added by this section, and a technical
  advisory committee of a metropolitan planning organization is not
  required to comply with Section 472.037, Transportation Code, as
  added by this section, before January 1, 2010.
         SECTION 2.13.  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.]
  ARTICLE 2A.  INSPECTOR GENERAL
         SECTION 2A.01.  Chapter 201, Transportation Code, is amended
  by adding Subchapter F-1 to read as follows:
  SUBCHAPTER F-1.  INSPECTOR GENERAL
         Sec. 201.451.  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 Transportation
  Legislative Oversight Committee under Chapter 205 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 Transportation Legislative Oversight
  Committee. This subsection expires August 31, 2013.
         Sec. 201.452.  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. 201.453.  FINAL REVIEW REPORTS. (a) The inspector
  general shall prepare a final report for each review conducted
  under Section 201.451. 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 201.451.
         (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 2A.02.  The Texas Transportation Commission or the
  Transportation Legislative Oversight Committee, as applicable,
  shall appoint an inspector general as required by Section 201.451,
  Transportation Code, as added by this Act, not later than December
  1, 2009.
  ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS
         SECTION 3.01.  (a)  Section 201.801, Transportation Code, is
  amended to read as follows:
         Sec. 201.801.  [INFORMATION ABOUT DEPARTMENT;] COMPLAINTS.  
  (a)  The department shall maintain a system to promptly and
  efficiently act on complaints filed with the department. The
  department shall maintain information about the parties to and the
  subject matter of a complaint and a summary of the results of the
  review or investigation of the complaint and the disposition of the
  complaint.
         (b)  The department shall make information available
  describing its procedures for complaint investigation and
  resolution [prepare information of public interest describing the
  functions of the department and the department's procedures by
  which a complaint is filed with the department and resolved by the
  department. The department shall make the information available to
  the public and appropriate state agencies].
         [(b)     The commission by rule shall establish methods by which
  consumers and service recipients are notified of the department's
  name, mailing address, and telephone number for directing
  complaints to the department. The commission may provide for that
  notification:
               [(1)     on each registration form, application, or
  written contract for services of an individual or entity regulated
  by the department;
               [(2)     on a sign prominently displayed in the place of
  business of each individual or entity regulated by the department;
  or
               [(3)     in a bill for service provided by an individual or
  entity regulated by the department.]
         (c)  [The department shall:
               [(1)     keep an information file about each written
  complaint filed with the department that the department has the
  authority to resolve; and
               [(2)     provide the person who filed the complaint, and
  each person or entity that is the subject of the complaint,
  information about the department's policies and procedures
  relating to complaint investigation and resolution.
         [(d)]  The department[, at least quarterly and until final
  disposition of a written complaint that is filed with the
  department and that the department has the authority to resolve,]
  shall periodically notify the parties to the complaint of its
  status until final disposition unless the notice would jeopardize
  an undercover investigation.
         (d)  The commission shall adopt rules applicable to each
  division and district to establish a process to act on complaints
  filed with the department [(e)     With regard to each complaint filed
  with the department, the department shall keep the following
  information:
               [(1)  the date the complaint is filed;
               [(2)  the name of the person filing the complaint;
               [(3)  the subject matter of the complaint;
               [(4)     a record of each person contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     if the department takes no action on the
  complaint, an explanation of the reasons that no action was taken].
         (e)  The department shall develop a standard form for
  submitting a complaint and make the form available on its Internet
  website.  The department shall establish a method to submit
  complaints electronically.
         (f)  The department shall develop a method for analyzing the
  sources and types of complaints and violations and establish
  categories for the complaints and violations. The department shall
  use the analysis to focus its information and education efforts on
  specific problem areas identified through the analysis.
         (g)  The department shall:
               (1)  compile:
                     (A)  detailed statistics and analyze trends on
  complaint information, including:
                           (i)  the nature of the complaints;
                           (ii)  their disposition; and
                           (iii)  the length of time to resolve
  complaints; and
                     (B)  complaint information on a district and a
  divisional basis; and
               (2)  report the information on a monthly basis to the
  division directors, office directors, and district engineers and on
  a quarterly basis to the commissioner.
         (b)  The Texas Department of Transportation shall adopt
  rules under Section 201.801, Transportation Code, as amended by
  this section, not later than March 1, 2010.
         SECTION 3.02.  Subchapter J, Chapter 201, Transportation
  Code, is amended by adding Section 201.811 to read as follows:
         Sec. 201.811.  PUBLIC INVOLVEMENT POLICY.  (a)  The
  department shall develop and implement a policy for public
  involvement that guides and encourages public involvement with the
  department.  The policy must:
               (1)  provide for the use of public involvement
  techniques that target different groups and individuals;
               (2)  encourage continuous contact between the
  department and persons outside the department throughout the
  transportation decision-making process;
               (3)  require the department to make efforts toward:
                     (A)  clearly tying public involvement to
  decisions made by the department; and
                     (B)  providing clear information to the public
  about specific outcomes of public input; and
               (4)  apply to all public input with the department,
  including input:
                     (A)  on statewide transportation policy-making;
                     (B)  in connection with the environmental process
  relating to specific projects; and
                     (C)  into the department's rulemaking procedures.
         (b)  The department shall document the ratio of positive
  public input to negative public input regarding all environmental
  impact statements as expressed by the public through the
  department's public involvement process. The department shall:
               (1)  present this information to the commissioner in an
  open meeting; and
               (2)  report this information on the department's
  Internet website in a timely manner.
         SECTION 3.03.  (a)  Section 228.004, Transportation Code, is
  amended to read as follows:
         Sec. 228.004.  [PROMOTION OF] TOLL PROJECT INFORMATION.
  (a)  The department may, notwithstanding Chapter 2113, Government
  Code, engage in marketing, advertising, and other activities to
  provide information relating to the status of pending or ongoing
  [promote the development and use of] toll projects and may enter
  into contracts or agreements necessary to procure marketing,
  advertising, or informational [other promotional] services from
  outside service providers.
         (b)  This section does not authorize the department to engage
  in marketing, advertising, or other activities for the purpose of
  influencing public opinion about the use of toll roads or the use of
  tolls as a financial mechanism.
         (b)  The change in law made by this section applies only to a
  contract or agreement entered into or renewed under Section
  228.004, Transportation Code, as amended by this section, on or
  after the effective date of this Act. A contract or agreement
  entered into or renewed under that section before the effective
  date of this Act is governed by the law in effect immediately before
  that date, and that law is continued in effect for that purpose.
         SECTION 3.04.  Section 228.201(a), Transportation Code, is
  amended to read as follows:
         (a)  The [Except as provided by Section 228.2015, the]
  department may not operate a nontolled state highway or a segment of
  a nontolled state highway as a toll project, and may not transfer a
  highway or segment to another entity for operation as a toll
  project, unless:
               (1)  the commission by order designated the highway or
  segment as a toll project before the contract to construct the
  highway or segment was awarded;
               (2)  the highway or segment was open to traffic as a
  turnpike project on or before September 1, 2005;
               (3)  the project was designated as a toll project in a
  plan or program of a metropolitan planning organization on or
  before September 1, 2005;
               (4)  the highway or segment is reconstructed so that
  the number of nontolled lanes on the highway or segment is greater
  than or equal to the number in existence before the reconstruction;
               (5)  a facility that has access, function, and control
  devices similar to the converted highway or segment before
  conversion is constructed adjacent to the highway or segment so
  that the number of nontolled lanes on the converted highway or
  segment and the adjacent facility together is greater than or equal
  to the number in existence on the converted highway or segment
  before the conversion; or
               (6)  subject to Subsection (b), the highway or segment
  was open to traffic as a high-occupancy vehicle lane on May 1,
  2005[; or
               [(7)     the commission converts the highway or segment to
  a toll facility by:
                     [(A)     making the determination required by
  Section 228.202;
                     [(B)     conducting the hearing required by Section
  228.203; and
                     [(C)     obtaining county and voter approval as
  required by Sections 228.207 and 228.208].
         SECTION 3.05.  Sections 228.202, 228.203, 228.207, and
  228.208, Transportation Code, are repealed.
  ARTICLE 4. CONTRACTING FUNCTIONS
         SECTION 4.01.  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, rules adopted under
  this section must be consistent in all procedural aspects,
  including limitations, with the design-build procedures for local
  governmental entities under Subchapter J, Chapter 271, Local
  Government Code.
         (c-1)  Money disbursed by the department for design-build
  contracts under this section may not be included in the amount
  required to be spent in a biennium for engineering and design
  contracts under Section 223.041.
         (d)  The department shall adopt rules specifying the
  conditions under which a design-build contract may be considered.
  In developing rules the department must address:
               (1)  the size and complexity of an eligible project;
               (2)  the time constraints for delivery of an eligible
  project;
               (3)  the level and training of the staff required to
  manage an eligible project; and
               (4)  other factors the department considers important.
         SECTION 4.02.  (a)  Subchapter E, Chapter 223,
  Transportation Code, is amended by adding Section 223.211 to read
  as follows:
         Sec. 223.211.  APPROVAL AND CERTIFICATION. A comprehensive
  development agreement, including a facility agreement under a
  comprehensive development agreement, under which a private entity
  will operate a toll project or be entitled to receive revenue from
  the project must be:
               (1)  reviewed by the attorney general for legal
  sufficiency under Section 371.051, as added by Chapter 264 (S.B.
  792), Acts of the 80th Legislature, Regular Session, 2007, and
  signed by the attorney general, if approved;
               (2)  reviewed by the comptroller for financial
  viability and signed and certified by the comptroller if approved;
  and
               (3)  signed by the commissioner.
         (b)  The change in law made by Section 223.211,
  Transportation Code, as added by this section, applies only to a
  comprehensive development agreement entered into on or after the
  effective date of this Act.
  ARTICLE 5. REGULATION OF MOTOR VEHICLE DEALERS, SALVAGE VEHICLE
  DEALERS, AND HOUSEHOLD GOODS CARRIERS
         SECTION 5.01.  (a)  Section 643.153, Transportation Code, is
  amended by amending Subsection (b) and adding Subsections (c), (h),
  and (i) to read as follows:
         (b)  The department may adopt rules necessary to ensure that
  a customer of a motor carrier transporting household goods is
  protected from deceptive or unfair practices and unreasonably
  hazardous activities.  The rules must:
               (1)  establish a formal process for resolving a dispute
  over a fee or damage;
               (2)  require a motor carrier to indicate clearly to a
  customer whether an estimate is binding or nonbinding and disclose
  the maximum price a customer could be required to pay;
               (3)  create a centralized process for making complaints
  about a motor carrier that also allows a customer to inquire about a
  carrier's complaint record; [and]
               (4)  require a motor carrier transporting household
  goods to list a place of business with a street address in this
  state and the carrier's registration number issued under this
  article in any print advertising published in this state; and
               (5)  require a motor carrier transporting household
  goods to submit to the department, at the time of the original motor
  carrier registration and at the renewal of the registration,
  documentation on whether the motor carrier:
                     (A)  regularly requests and obtains criminal
  history record information on its employees under Chapter 145,
  Civil Practice and Remedies Code; and
                     (B)  uses the criminal history record information
  to exclude from employment persons who have committed a serious
  criminal offense.
         (c)  The department shall make available to the public on the
  department's Internet website the information received under
  Subsection (b)(5) to allow members of the public to make an informed
  choice when selecting a motor carrier to transport household goods.
         (h)  Subject to Subsection (i), the department may order a
  motor carrier that transports household goods to pay a refund to a
  customer as provided in an agreement resulting from an informal
  settlement instead of or in addition to imposing an administrative
  penalty under this chapter.
         (i)  The amount of a refund ordered as provided in an
  agreement resulting from an informal settlement may not exceed the
  amount the customer paid to the motor carrier for a service or the
  amount the customer paid for an item damaged by the motor carrier,
  without requiring an estimation of the actual cost of the damage.  
  The department may not require payment of other damages or estimate
  harm in a refund order.
         (b)  The change in law made by Sections 643.153(h) and (i),
  Transportation Code, as added by this section, applies only to an
  agreement to transport household goods entered into on or after the
  effective date of this Act. An agreement to transport household
  goods entered into before the effective date of this Act is governed
  by the law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 5.02.  (a)  Section 643.251(b), Transportation Code,
  is amended to read as follows:
         (b)  Except as provided by this section, the amount of an
  administrative penalty may not exceed $5,000. If it is found that
  the motor carrier knowingly committed the violation, the penalty
  may not exceed $15,000.   [If it is found that the motor carrier
  knowingly committed multiple violations, the aggregate penalty for
  the multiple violations may not exceed $30,000.]  Each day a
  violation continues or occurs is a separate violation for purposes
  of imposing a penalty.
         (b)  The change in law made by this section to Section
  643.251, Transportation Code, applies only to a violation committed
  by a motor carrier on or after the effective date of this Act. For
  purposes of this subsection, a violation was committed before the
  effective date of this Act if any element of the violation was
  committed before that date.  A violation committed by a motor
  carrier before the effective date of this Act is covered by the law
  in effect on the date the violation was committed, and the former
  law is continued in effect for that purpose.
         SECTION 5.03.  Subchapter F, Chapter 643, Transportation
  Code, is amended by adding Sections 643.256 and 643.257 to read as
  follows:
         Sec. 643.256.  SUMMARY SUSPENSION. (a)  The department may
  summarily suspend the registration of a motor carrier registered
  under this chapter if the motor carrier's failure to comply with
  this chapter or a rule adopted under this chapter is determined by
  the department to constitute a continuing and imminent threat to
  the public safety and welfare.
         (b)  To initiate a proceeding to take action under Subsection
  (a), the department must serve notice on the motor carrier. The
  notice must:
               (1)  state the grounds for summary suspension;
               (2)  be personally served on the motor carrier or sent
  to the motor carrier by certified or registered mail, return
  receipt requested, to the motor carrier's mailing address as it
  appears in the department's records; and
               (3)  inform the motor carrier of the right to a hearing
  on the suspension.
         (c)  The suspension is effective on the date notice is
  personally served or received by mail. The motor carrier is
  entitled to appeal the suspension in the manner provided by Section
  643.2525 for the appeal of an order of the board.
         Sec. 643.257.  EMERGENCY CEASE AND DESIST ORDER.  (a)  If it
  appears to the board that a motor carrier who is not registered to
  transport household goods for compensation under Section 643.051 is
  violating this chapter, a rule adopted under this chapter, or
  another state statute or rule relating to the transportation of
  household goods and the board determines that the unauthorized
  activity constitutes a clear, imminent, or continuing threat to the
  public health and safety, the board may:
               (1)  issue an emergency cease and desist order
  prohibiting the motor carrier from engaging in the activity; and
               (2)  report the activity to a local law enforcement
  agency or the attorney general for prosecution.
         (b)  An order issued under Subsection (a) must:
               (1)  be delivered on issuance to the motor carrier
  affected by the order by personal delivery or registered or
  certified mail, return receipt requested, to the motor carrier's
  last known address;
               (2)  state the acts or practices alleged to be an
  unauthorized activity and require the motor carrier immediately to
  cease and desist from the unauthorized activity; and
               (3)  contain a notice that a request for hearing may be
  filed under this section.
         (c)  A motor carrier against whom an emergency cease and
  desist order is directed may request a hearing before the 11th day
  after the date it is served on the motor carrier.  If the motor
  carrier does not request a hearing in that time, the order is final
  and nonappealable as to that motor carrier.  A request for a
  hearing must:
               (1)  be in writing and directed to the board; and
               (2)  state the grounds for the request to set aside or
  modify the order.
         (d)  On receiving a request for a hearing, the board shall
  serve notice of the time and place of the hearing by personal
  delivery or registered or certified mail, return receipt
  requested.  The hearing must be held not later than the 10th day
  after the date the board receives the request for a hearing unless
  the parties agree to a later hearing date.  A hearing under this
  subsection is subject to Chapter 2001, Government Code.
         (e)  After the hearing, the board shall affirm, modify, or
  set aside wholly or partly the emergency cease and desist order.  An
  order affirming or modifying the emergency cease and desist order
  is immediately final for purposes of enforcement and appeal.
         (f)  An order under this section continues in effect unless
  the order is stayed by the board.  The board may impose any
  condition before granting a stay of the order.
         (g)  The board may release to the public a final cease and
  desist order issued under this section or information regarding the
  existence of the order if the board determines that the release
  would enhance the effective enforcement of the order or will serve
  the public interest.
         (h)  A violation of an order issued under this section
  constitutes additional grounds for imposing an administrative
  penalty under this chapter.
         SECTION 5.04.  Section 2301.654, Occupations Code, is
  amended to read as follows:
         Sec. 2301.654.  PROBATION. If a suspension of a license is
  probated, the board may:
               (1)  require the license holder to report regularly to
  the board on matters that are the basis of the probation; [or]
               (2)  limit activities to those prescribed by the board;
  or
               (3)  require the license holder to obtain specialized
  training so that the license holder attains a degree of skill
  satisfactory to the board in those areas that are the basis of the
  probation.
         SECTION 5.05.  (a)  Subchapter Q, Chapter 2301, Occupations
  Code, is amended by adding Sections 2301.807 and 2301.808 to read as
  follows:
         Sec. 2301.807.  ADMINISTRATIVE PENALTY.  (a)  The board may
  impose an administrative penalty on a person licensed under this
  chapter who violates this chapter or a rule or order adopted under
  this chapter.
         (b)  The amount of an administrative penalty imposed under
  this section may not exceed $5,000.  Each day a violation continues
  or occurs is a separate violation for the purpose of imposing a
  penalty.  The amount of the penalty shall be based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm to property or the environment
  caused by the violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  the threat to the public safety and welfare;
               (6)  efforts to correct the violation; and
               (7)  any other matter that justice may require.
         (c)  The board by rule shall adopt a schedule of
  administrative penalties based on the criteria listed in Subsection
  (b) for violations subject to an administrative penalty under this
  section to ensure that the amount of a penalty imposed is
  appropriate to the violation.
         (d)  The enforcement of an administrative penalty may be
  stayed during the time the order is under judicial review if the
  person pays the penalty to the clerk of the court or files a
  supersedeas bond with the court in the amount of the penalty.  A
  person who cannot afford to pay the penalty or file the bond may
  stay the enforcement by filing an affidavit in the manner required
  by the Texas Rules of Civil Procedure for a party who cannot afford
  to file security for costs, subject to the right of the board to
  contest the affidavit as provided by those rules.
         (e)  The attorney general may sue to collect an
  administrative penalty imposed under this section. In the suit the
  attorney general may recover, on behalf of the state, the
  reasonable expenses incurred in obtaining the penalty, including
  investigation and court costs, reasonable attorney's fees, witness
  fees, and other expenses.
         (f)  An administrative penalty collected under this section
  shall be deposited in the general revenue fund.
         (g)  A proceeding to impose an administrative penalty under
  this section is a contested case under Chapter 2001, Government
  Code.
         Sec. 2301.808.  REFUND.  (a)  Subject to Subsection (b), the
  board may order a motor vehicle dealer to pay a refund to a consumer
  as provided in an agreement resulting from an informal settlement
  instead of or in addition to imposing an administrative penalty
  under this chapter.
         (b)  The amount of a refund ordered as provided in an
  agreement resulting from an informal settlement may not exceed the
  amount the consumer paid to the motor vehicle dealer.  The board may
  not require payment of other damages or estimate harm in a refund
  order.
         (b)  Subchapter H, Chapter 2302, Occupations Code, is
  amended by adding Section 2302.352 to read as follows:
         Sec. 2302.352.  ADMINISTRATIVE PENALTY.  (a)  The board may
  impose an administrative penalty on a salvage vehicle dealer
  licensed under this chapter who violates this chapter or a rule or
  order adopted under this chapter.
         (b)  The amount of an administrative penalty imposed under
  this section may not exceed $5,000.  Each day a violation continues
  or occurs is a separate violation for the purpose of imposing a
  penalty. The amount of the penalty shall be based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm to property or the environment
  caused by the violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  the threat to the public safety and welfare;
               (6)  efforts to correct the violation; and
               (7)  any other matter that justice may require.
         (c)  The board by rule shall adopt a schedule of
  administrative penalties based on the criteria listed in Subsection
  (b) for violations subject to an administrative penalty under this
  section to ensure that the amount of a penalty imposed is
  appropriate to the violation.
         (d)  The enforcement of an administrative penalty may be
  stayed during the time the order is under judicial review if the
  person pays the penalty to the clerk of the court or files a
  supersedeas bond with the court in the amount of the penalty.  A
  person who cannot afford to pay the penalty or file the bond may
  stay the enforcement by filing an affidavit in the manner required
  by the Texas Rules of Civil Procedure for a party who cannot afford
  to file security for costs, subject to the right of the board to
  contest the affidavit as provided by those rules.
         (e)  The attorney general may sue to collect an
  administrative penalty imposed under this section. In the suit the
  attorney general may recover, on behalf of the state, the
  reasonable expenses incurred in obtaining the penalty, including
  investigation and court costs, reasonable attorney's fees, witness
  fees, and other expenses.
         (f)  An administrative penalty collected under this section
  shall be deposited in the general revenue fund.
         (g)  A proceeding to impose an administrative penalty under
  this section is a contested case under Chapter 2001, Government
  Code.
         (c)  The change in law made by Section 2301.808, Occupations
  Code, as added by this section, applies only to a motor vehicle
  purchased or leased on or after the effective date of this Act. A
  motor vehicle purchased or leased before the effective date of this
  Act is governed by the law in effect immediately before that date,
  and that law is continued in effect for that purpose.
  ARTICLE 6. REGULATION OF OUTDOOR ADVERTISING
         SECTION 6.01.  Section 391.004, Transportation Code, is
  amended to read as follows:
         Sec. 391.004.  TEXAS HIGHWAY BEAUTIFICATION FUND ACCOUNT.
  The Texas highway beautification fund account is an account in the
  general revenue fund. Money the commission receives under this
  chapter shall be deposited to the credit of the Texas highway
  beautification fund account. The commission shall use money in the
  Texas highway beautification fund account to administer this
  chapter and Chapter 394.
         SECTION 6.02.  (a)  Subchapter A, Chapter 391,
  Transportation Code, is amended by adding Section 391.006 to read
  as follows:
         Sec. 391.006.  COMPLAINTS; RECORDS. (a)  The department by
  rule shall establish procedures for accepting and resolving written
  complaints related to outdoor advertising under this chapter.  The
  rules must include:
               (1)  a process to make information available describing
  its procedures for complaint investigation and resolution,
  including making information about the procedures available on the
  department's Internet website;
               (2)  a simple form for filing complaints with the
  department;
               (3)  a system to prioritize complaints so that the most
  serious complaints receive attention before less serious
  complaints; and
               (4)  a procedure for compiling and reporting detailed
  annual statistics about complaints.
         (b)  The department shall provide to each person who files a
  written complaint with the department, and to each person who is the
  subject of a complaint, information about the department's policies
  and procedures relating to complaint investigation and resolution.
         (c)  The department shall keep an information file about each
  written complaint filed with the department that the department has
  authority to resolve. The department shall keep the following
  information for each complaint for the purpose of enforcing this
  chapter:
               (1)  the date the complaint is filed;
               (2)  the name of the person filing the complaint;
               (3)  the subject matter of the complaint;
               (4)  each person contacted in relation to the
  complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  if the department does not take action on the
  complaint, an explanation of the reasons that action was not taken.
         (d)  If a written complaint is filed with the department that
  the department has authority to resolve, the department, at least
  quarterly and until final disposition of the complaint, shall
  notify the parties to the complaint of the status of the complaint
  unless the notice would jeopardize an ongoing department
  investigation.
         (b)  The Texas Transportation Commission shall adopt rules
  under Section 391.006, Transportation Code, as added by this
  section, not later than September 1, 2010.
         SECTION 6.03.  Subchapter A, Chapter 391, Transportation
  Code, is amended by adding Section 391.007 to read as follows:
         Sec. 391.007.  REQUEST FOR HEARING. (a)  If the department
  revokes a permit issued under this chapter, denies the application
  for a permit submitted under this chapter, or issues an
  administrative penalty under this chapter, the department shall
  send written notice by certified mail to the affected person.
         (b)  Not later than the 30th day after the date a person
  receives notice under Subsection (a), the person may make a written
  request to the commission for an administrative hearing to appeal:
               (1)  the denial of a permit application submitted under
  this chapter;
               (2)  the revocation of a permit issued under this
  chapter; or
               (3)  the imposition of an administrative penalty under
  this chapter.
         (c)  If a person requests a hearing under this section, the
  hearing shall be conducted by the State Office of Administrative
  Hearings. Chapter 2001, Government Code, applies to a proceeding
  under this chapter to the extent consistent with this chapter.
         (d)  The State Office of Administrative Hearings shall
  consider the department's applicable substantive rules and
  policies when conducting a hearing under this section.
         (e)  After a hearing conducted under this section, the
  administrative law judge shall:
               (1)  make findings of fact and conclusions of law; and
               (2)  promptly issue a decision to the commission.
         SECTION 6.04.  Subchapter B, Chapter 391, Transportation
  Code, is amended by adding Section 391.0331 to read as follows:
         Sec. 391.0331.  COSTS OF REMOVAL OF CERTAIN OUTDOOR
  ADVERTISING IN MUNICIPALITY.  If outdoor advertising located in a
  municipality or in the extraterritorial jurisdiction of a
  municipality that regulates outdoor advertising in its
  extraterritorial jurisdiction is required to be removed because of
  the widening, construction, or reconstruction of a road to which
  this chapter applies and if relocation of the outdoor advertising
  would be allowed under commission rules but is prohibited by
  charter, ordinance, or a decision of the municipality, the
  municipality shall pay just compensation to:
               (1)  the owner for the right, title leasehold, and
  interest in the outdoor advertising; and
               (2)  the owner or, if appropriate, the lessee of the
  real property on which the outdoor advertising is located for the
  right to erect and maintain the outdoor advertising.
         SECTION 6.05.  Section 391.035(c), Transportation Code, is
  amended to read as follows:
         (c)  A penalty collected under this section shall be
  deposited to the credit of the Texas highway beautification [state
  highway] fund account if collected by the attorney general and to
  the credit of the county road and bridge fund of the county in which
  the violation occurred if collected by a district or county
  attorney.
         SECTION 6.06.  Subchapter B, Chapter 391, Transportation
  Code, is amended by adding Section 391.0355 to read as follows:
         Sec. 391.0355.  ADMINISTRATIVE PENALTY. (a)  In lieu of a
  suit to collect a civil penalty, the commission, after notice and an
  opportunity for a hearing before the commission, may impose an
  administrative penalty against a person who violates this chapter
  or a rule adopted by the commission under this chapter. Each day a
  violation continues is a separate violation.
         (b)  The amount of the administrative penalty may not exceed
  the maximum amount of a civil penalty under Section 391.035.
         (c)  A proceeding under this section is a contested case
  under Chapter 2001, Government Code.
         (d)  Judicial review of an appeal of an administrative
  penalty imposed under this section is under the substantial
  evidence rule.
         (e)  An administrative penalty collected under this section
  shall be deposited to the credit of the Texas highway
  beautification fund account.
         SECTION 6.07.  Section 391.063, Transportation Code, is
  amended to read as follows:
         Sec. 391.063.  LICENSE FEE.  The commission may set the
  amount of a license fee according to a scale graduated by the number
  of units of outdoor advertising and number of off-premise signs
  under Chapter 394 owned by a license applicant.
         SECTION 6.08.  Section 391.064, Transportation Code, is
  amended by adding Subsection (c) to read as follows:
         (c)  A person is not required to file with the commission a
  surety bond for outdoor advertising under this chapter if the
  person files with the commission a surety bond for an off-premise
  sign under Chapter 394.
         SECTION 6.09.  Section 391.065(b), Transportation Code, is
  amended to read as follows:
         (b)  For the efficient management and administration of this
  chapter and to reduce the number of employees required to enforce
  this chapter, the commission shall adopt rules for issuing
  standardized forms that are for submission by license holders and
  applicants and that provide for an accurate showing of the number,
  location, or other information required by the commission for each
  license holder's or applicant's outdoor advertising or off-premise
  signs under Chapter 394.
         SECTION 6.10.  Section 391.066, Transportation Code, is
  amended by adding Subsections (d) and (e) 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.
         (e)  The commission by rule shall adopt procedures for the
  suspension, revocation, or denial of a renewal of a license under
  this section, or the assessment of an administrative penalty under
  Section 391.0355. The procedures must ensure that the enforcement
  action is appropriate for the violation for which it is taken.  The
  rules adopting the procedures must require the commission to
  consider:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm to property or the environment
  caused by the violation;
               (3)  the history of previous violations;
               (4)  for an administrative penalty, the amount
  necessary to deter future violations;
               (5)  the threat to the public safety and welfare posed
  by the violation;
               (6)  efforts to correct the violation; and
               (7)  any other matter that justice may require.
         SECTION 6.11.  Subchapter C, Chapter 391, Transportation
  Code, is amended by adding Section 391.0661 to read as follows:
         Sec. 391.0661.  APPLICABILITY OF LICENSE. In addition to
  authorizing a person to erect or maintain outdoor advertising, a
  license issued under this chapter authorizes a person to erect or
  maintain an off-premise sign under Chapter 394.
         SECTION 6.12.  Section 391.254(c), Transportation Code, is
  amended to read as follows:
         (c)  A civil penalty collected by the attorney general under
  this section shall be deposited to the credit of the Texas highway
  beautification [state highway] fund account.
         SECTION 6.13.  Section 394.005, Transportation Code, is
  amended to read as follows:
         Sec. 394.005.  DISPOSITION OF FEES. Money the commission
  receives [A registration fee collected] under this chapter [Section
  394.048 by the commission] shall be deposited to the credit of the
  Texas highway beautification [state highway] fund account.
         SECTION 6.14.  (a)  Subchapter A, Chapter 394,
  Transportation Code, is amended by adding Section 394.006 to read
  as follows:
         Sec. 394.006.  COMPLAINTS; RECORDS.  (a)  The department by
  rule shall establish procedures for accepting and resolving written
  complaints related to signs under this chapter. The rules must
  include:
               (1)  a process to make information available describing
  its procedures for complaint investigation and resolution,
  including making information about the procedures available on the
  department's Internet website;
               (2)  a simple form for filing complaints with the
  department;
               (3)  a system to prioritize complaints so that the most
  serious complaints receive attention before less serious
  complaints; and
               (4)  a procedure for compiling and reporting detailed
  annual statistics about complaints.
         (b)  The department shall provide to each person who files a
  written complaint with the department, and to each person who is the
  subject of a complaint, information about the department's policies
  and procedures relating to complaint investigation and resolution.
         (c)  The department shall keep an information file about each
  written complaint filed with the department that the department has
  authority to resolve. The department shall keep the following
  information for each complaint for the purpose of enforcing this
  chapter:
               (1)  the date the complaint is filed;
               (2)  the name of the person filing the complaint;
               (3)  the subject matter of the complaint;
               (4)  each person contacted in relation to the
  complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  if the department does not take action on the
  complaint, an explanation of the reasons that action was not taken.
         (d)  If a written complaint is filed with the department that
  the department has authority to resolve, the department, at least
  quarterly and until final disposition of the complaint, shall
  notify the parties to the complaint of the status of the complaint
  unless the notice would jeopardize an ongoing department
  investigation.
         (b)  The Texas Transportation Commission shall adopt rules
  under Section 394.006, Transportation Code, as added by this
  section, not later than September 1, 2010.
         SECTION 6.15.  Subchapter A, Chapter 394, Transportation
  Code, is amended by adding Section 394.007 to read as follows:
         Sec. 394.007.  COSTS FOR REMOVAL OF SIGNS IN CERTAIN
  MUNICIPALITIES.  If a sign located in a municipality or in the
  extraterritorial jurisdiction of a municipality that regulates
  signs in its extraterritorial jurisdiction is required to be
  removed because of the widening, construction, or reconstruction of
  a road to which this chapter applies and if relocation of the sign
  would be allowed under commission rules but is prohibited by
  charter, ordinance, or a decision of the municipality, the
  municipality shall pay just compensation to:
               (1)  the owner for the right, title leasehold, and
  interest in the sign; and
               (2)  the owner or, if appropriate, the lessee of the
  real property on which the sign is located for the right to erect
  and maintain the sign.
         SECTION 6.16.  The heading to Subchapter B, Chapter 394,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER B. LICENSE AND PERMIT FOR OFF-PREMISE SIGN
         SECTION 6.17.  (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.
         (c)  A person is not required to file with the commission a
  surety bond for an off-premise sign under this chapter if the person
  files with the commission a surety bond for outdoor advertising
  under Chapter 391.
         Sec. 394.0205.  RULES; FORMS. (a)  The commission may adopt
  rules to implement Sections 394.0201(a), 394.0202, 394.0203,
  394.0204, and 394.0206.
         (b)  For the efficient management and administration of this
  chapter and to reduce the number of employees required to enforce
  this chapter, the commission shall adopt rules for issuing
  standardized forms that are for submission by license holders and
  applicants and that provide for an accurate showing of the number,
  location, or other information required by the commission for each
  license holder's or applicant's off-premise signs or outdoor
  advertising under Chapter 391.
         Sec. 394.0206.  REVOCATION OR SUSPENSION OF LICENSE; APPEAL.
  (a)  The commission may revoke or suspend a license issued under
  this subchapter or place on probation a license holder whose
  license is suspended if the license holder violates this chapter or
  a rule adopted under this chapter. If the suspension of the license
  is probated, the department may require the license holder to
  report regularly to the commission on any matter that is the basis
  of the probation.
         (b)  The judicial appeal of the revocation or suspension of a
  license must be initiated not later than the 15th day after the date
  of the commission's action.
         (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.
         (e)  The commission by rule shall adopt procedures for the
  suspension, revocation, or denial of a renewal of a license under
  this section, or the assessment of an administrative penalty under
  Section 394.082. The procedures must ensure that the enforcement
  action is appropriate for the violation for which it is taken.  The
  rules adopting the procedures must require the commission to
  consider:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm to property or the environment
  caused by the violation;
               (3)  the history of previous violations;
               (4)  for an administrative penalty, the amount
  necessary to deter future violations;
               (5)  the threat to the public safety and welfare posed
  by the violation;
               (6)  efforts to correct the violation; and
               (7)  any other matter that justice may require.
         Sec. 394.0207.  APPLICABILITY OF LICENSE.  In addition to
  authorizing a person to erect or maintain an off-premise sign, a
  license issued under this chapter authorizes a person to erect or
  maintain outdoor advertising under Chapter 391.
         Sec. 394.027.  FEE AMOUNTS. The license and permit fees
  required by this subchapter may not exceed an amount reasonably
  necessary to cover the administrative costs incurred to enforce
  this chapter.
         Sec. 394.028.  EXCEPTIONS FOR CERTAIN NONPROFIT
  ORGANIZATIONS. (a)  The combined license and permit fees under this
  subchapter may not exceed $10 for an off-premise sign erected and
  maintained by a nonprofit organization in a municipality or a
  municipality's extraterritorial jurisdiction if the sign relates
  to or promotes only the municipality or a political subdivision
  whose jurisdiction is wholly or partly concurrent with the
  municipality.
         (b)  The nonprofit organization is not required to file a
  bond as provided by Section 394.0202(a)(3).
         Sec. 394.029.  DENIAL OF PERMIT; APPEAL. The commission may
  create a process by which an applicant may appeal a denial of a
  permit under this subchapter.
         (b)  The change in law made by Section 394.0201,
  Transportation Code, as added by this section, applies only to an
  off-premise sign erected or for which a permit is issued or renewed
  on or after the effective date of this Act. An off-premise sign for
  which a permit is issued before the effective date of this Act is
  covered by the law in effect when the permit was issued, and the
  former law is continued in effect for that purpose.
         SECTION 6.18.  Section 394.050, Transportation Code, is
  amended to read as follows:
         Sec. 394.050.  [BOARD OF] VARIANCE.  The executive director
  or a person designated by the executive director [commission shall
  provide for a board of variance that], in an appropriate case and
  subject to an appropriate condition or safeguard, may make a
  special exception to this chapter regarding a permit for an
  off-premise outdoor sign on a rural road.
         SECTION 6.19.  Section 394.081(c), Transportation Code, is
  amended to read as follows:
         (c)  A civil penalty collected under this section shall be
  deposited to the credit of the Texas highway beautification [state
  highway] fund account if collected by the attorney general and to
  the credit of the county road and bridge fund if collected by a
  district or county attorney.
         SECTION 6.20.  Sections 394.082(a), (d), and (e),
  Transportation Code, are amended to read as follows:
         (a)  In lieu of a suit to collect a civil penalty, the
  commission, after notice and an opportunity for a hearing before
  the commission, may impose an administrative penalty against a
  person who [intentionally] violates this chapter or a rule adopted
  by the commission under this chapter. Each day a violation
  continues is a separate violation.
         (d)  Judicial review of an appeal of an administrative
  penalty imposed under this section is under the substantial
  evidence rule [by trial de novo].
         (e)  An administrative penalty collected under this section
  shall be deposited to the credit of the Texas highway
  beautification [state highway] fund account.
         SECTION 6.21.  Subchapter E, Chapter 394, Transportation
  Code, is amended by adding Section 394.088 to read as follows:
         Sec. 394.088.  ADMINISTRATIVE HEARING. (a) If the
  department denies a permit application submitted under this
  chapter, or issues an administrative penalty under this chapter and
  under a section other than Section 394.086, the department shall
  send written notice by certified mail to the affected person.
         (b)  Not later than the 30th day after the date a person
  receives notice under Subsection (a), that person may make a
  written request to the commission for an administrative hearing to
  appeal:
               (1)  the denial of a permit application submitted under
  this chapter;
               (2)  the revocation of a permit issued under this
  chapter; or
               (3)  the imposition of an administrative penalty under
  this chapter.
         (c)  If a person requests a hearing under this section, the
  hearing shall be conducted by the State Office of Administrative
  Hearings. Chapter 2001, Government Code, applies to a proceeding
  under this chapter to the extent consistent with this chapter.
         (d)  The State Office of Administrative Hearings shall
  consider the department's applicable substantive rules and
  policies when conducting a hearing under this section.
         (e)  After a hearing conducted under this section, the
  administrative law judge shall:
               (1)  make findings of fact and conclusions of law; and
               (2)  promptly issue a decision to the commission.
         SECTION 6.22.  Subtitle H, Title 6, Transportation Code, is
  amended by adding Chapter 398 to read as follows:
  CHAPTER 398.  PROVISIONS GENERALLY APPLICABLE TO OUTDOOR SIGNS
         Sec. 398.001.  DEFINITION.  In this chapter, "off-premise
  sign" means an outdoor sign displaying advertising that pertains to
  a business, person, organization, activity, event, place, service,
  or product not principally located or primarily manufactured or
  sold on the premises on which the sign is located.
         Sec. 398.002.  RIGHTS OF OWNER OF CERTAIN SIGNS. The rights
  associated with an off-premise sign that is lawfully in existence
  but no longer complies with current applicable laws and
  regulations, including laws and regulations promulgated under
  Chapters 391 and 394 of this code, and Chapter 216, Local Government
  Code, vest in the owner of the off-premise sign.  This section does
  not abrogate or otherwise affect the property rights of a party in
  an eminent domain proceeding.
         SECTION 6.23.  Section 391.065(c), Transportation Code, is
  repealed.
  ARTICLE 7. GREEN RIBBON PROJECT
         SECTION 7.01.  Subchapter I, Chapter 201, Transportation
  Code, is amended by adding Section 201.708 to read as follows:
         Sec. 201.708.  EXPENDITURES FOR HIGHWAY LANDSCAPING. (a)  
  For each contract for a highway project that is located in an area
  designated by the United States Environmental Protection Agency as
  a nonattainment or near-nonattainment area under Section 107(d) of
  the federal Clean Air Act (42 U.S.C. Section 7407), the department
  shall allocate to the district or districts in which the project is
  to be located one-half of one percent of the total amount to be
  spent under the contract for construction, maintenance, and
  improvement of the project to be used for landscaping improvements
  for the project or other projects in the district or districts.
         (b)  Landscaping improvements may include:
               (1)  planting of indigenous or adapted trees and other
  plants that are suitable for the climate in the area; and
               (2)  preparing the soil and installing irrigation
  systems for the growth of trees and plants.
         SECTION 7.02.  Chapter 371, Transportation Code, as added by
  Chapter 103 (H.B. 570), Acts of the 80th Legislature, Regular
  Session, 2007, is amended by adding Subchapter C to read as follows:
  SUBCHAPTER C.  CONSTRUCTION, IMPROVEMENT, AND MAINTENANCE
         Sec. 371.101.  EXPENDITURES FOR TOLL PROJECT LANDSCAPING.
  (a)  For each contract for a toll project that is located in an area
  designated by the United States Environmental Protection Agency as
  a nonattainment or near-nonattainment area under Section 107(d) of
  the federal Clean Air Act (42 U.S.C. Section 7407), the toll project
  entity shall allocate to the district or districts in which the
  project is to be located an amount equal to one-half of one percent
  of the total amount to be spent under the contract for construction,
  maintenance, and improvement of the project to be used for
  landscaping improvements for the project or other projects in the
  district or districts.
         (b)  Landscaping improvements may include:
               (1)  planting indigenous or adapted trees and other
  plants that are suitable for the climate in the area; and
               (2)  preparing the soil and installing irrigation
  systems for the growth of trees and plants.
  ARTICLE 8. TEXAS DEPARTMENT OF MOTOR VEHICLES
  PART 1. GENERAL PROVISIONS
         SECTION 8.1.01.  Title 7, Transportation Code, is amended by
  adding Subtitle M to read as follows:
  SUBTITLE M. TEXAS DEPARTMENT OF MOTOR VEHICLES
  CHAPTER 1001.  ORGANIZATION OF DEPARTMENT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 1001.001.  DEFINITIONS. In this subtitle:
               (1)  "Board" means the board of the department.
               (2)  "Department" means the Texas Department of Motor
  Vehicles.
         Sec. 1001.002.  CREATION OF DEPARTMENT; DUTIES. (a) The
  department is created as an agency of this state.
         (b)  In addition to the other duties required of the Texas
  Department of Motor Vehicles, the department shall administer and
  enforce:
               (1)  Subtitle A;
               (2)  Subtitle E;
               (3)  Chapters 642, 643, 645, 646, and 648; and
               (4)  Chapters 2301 and 2302, Occupations Code.
         Sec. 1001.003.  COMPOSITION OF DEPARTMENT. The department
  is composed of an executive director appointed by the board and
  other employees required to efficiently implement:
               (1)  this subtitle;
               (2)  other applicable vehicle laws of this state; and
               (3)  other laws that grant jurisdiction to or are
  applicable to the department.
         Sec. 1001.004.  DIVISIONS.  The board shall organize the
  department into divisions to accomplish the department's functions
  and the duties assigned to it, including divisions for:
               (1)  administration;
               (2)  motor carriers;
               (3)  motor vehicles; and
               (4)  vehicle titles and registration.
         Sec. 1001.005.  ADVISORY COMMITTEES. (a)  The board shall
  establish separate advisory committees for the motor carrier, motor
  vehicles, and vehicle titles and registration divisions to make
  recommendations to the board or the executive director on the
  operation of the applicable division. A committee has the
  purposes, powers, and duties, including the manner of reporting its
  work, prescribed by the board. A committee and each committee
  member serves at the will of the board.
         (b)  The board shall appoint persons to each advisory
  committee who:
               (1)  are selected from a list provided by the executive
  director; and
               (2)  have knowledge about and interests in, and
  represent a broad range of viewpoints about, the work of the
  committee or applicable division.
         (c)  The advisory committee for the motor vehicles division
  must include a member to represent motor vehicle manufacturers and
  a member to represent the recreational vehicle industry.
         (d)  The advisory committee for the motor carrier division
  must include a member to represent the motor transportation
  industry.
         (e)  A member of an advisory committee may not be compensated
  by the board or the department for committee service.
         Sec. 1001.006.  SUNSET PROVISION. The department is subject
  to Chapter 325, Government Code (Texas Sunset Act). Unless
  continued in existence as provided by that chapter, the department
  is abolished September 1, 2015.
  [Sections 1001.007-1001.020 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DEPARTMENT OF MOTOR VEHICLES
         Sec. 1001.021.  BOARD.  (a)  The board consists of nine
  members appointed by the governor with the advice and consent of the
  senate.
         (b)  The membership of the board must include:
               (1)  three members who are persons who hold a dealer's
  license issued under Chapter 2301, Occupations Code, of whom:
                     (A)  two members must be franchised dealers of
  different classes; and
                     (B)  one member must be an independent dealer;
               (2)  one member who is a representative of a
  manufacturer or distributor that holds a license issued under
  Chapter 2301, Occupations Code;
               (3)  one member who is a tax assessor-collector;
               (4)  one member who is a representative of a law
  enforcement agency of a county or municipality;
               (5)  one member who is a representative of the motor
  carrier industry; and
               (6)  two members who are public members.
         (c)  A person may not be a public member of the board if the
  person or the person's spouse:
               (1)  is registered, certified, or licensed by the
  department;
               (2)  is employed by or participates in the management
  of a business entity or other organization regulated by or
  receiving money from the department;
               (3)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization regulated by or receiving money from the department;
  or
               (4)  uses or receives a substantial amount of tangible
  goods, services, or money from the department other than
  compensation or reimbursement authorized by law for board
  membership, attendance, or expenses.
         Sec. 1001.022.  TERMS.  Members of the board serve staggered
  six-year terms, with the terms of either one or two members expiring
  February 1 of each odd-numbered year.
         Sec. 1001.023.  PRESIDING OFFICER OF BOARD.  (a)  The
  governor shall designate a member of the board as the presiding
  officer of the board to serve in that capacity at the pleasure of
  the governor.
         (b)  The presiding officer shall:
               (1)  preside over board meetings, make rulings on
  motions and points of order, and determine the order of business;
               (2)  create subcommittees, appoint board members to
  subcommittees, and receive the reports of subcommittees to the
  board as a whole; and
               (3)  appoint a member of the board to act in the
  presiding officer's absence.
         Sec. 1001.024.  BOARD MEETINGS.  The board shall hold
  regular meetings at least quarterly or at the call of the presiding
  officer.  Board members shall attend the meetings of the board.  The
  presiding officer shall oversee the preparation of an agenda for
  each meeting and ensure that a copy is provided to each board member
  at least seven days before the meeting.
         Sec. 1001.025.  COMPENSATION.  A member of the board is not
  entitled to compensation, but each member is entitled to
  reimbursement for actual and necessary expenses as provided by the
  General Appropriations Act.
         Sec. 1001.026.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
  removal from the board that a board member:
               (1)  does not have at the time of taking office the
  qualifications required by Section 1001.021;
               (2)  does not maintain during service on the board the
  qualifications required by Section 1001.021;
               (3)  is ineligible for membership under Section
  1001.021(c), 1007.002, or 1007.003;
               (4)  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (5)  is absent from more than half of the regularly
  scheduled board meetings that the member is eligible to attend
  during a calendar year without an excuse approved by a majority
  vote of the board.
         (b)  The validity of an action of the board is not affected by
  the fact that it is taken when a ground for removal of a board member
  exists.
         (c)  If the executive director of the department has
  knowledge that a potential ground for removal exists, the executive
  director shall notify the presiding officer of the board of the
  potential ground. The presiding officer shall then notify the
  governor and the attorney general that a potential ground for
  removal exists. If the potential ground for removal involves the
  presiding officer, the executive director shall notify the next
  highest ranking officer of the board, who shall then notify the
  governor and the attorney general that a potential ground for
  removal exists.
         Sec. 1001.027.  TRAINING ON DEPARTMENT AND CERTAIN LAWS
  RELATING TO DEPARTMENT.  (a)  A person who is appointed to and
  qualifies for office as a member of the board may not vote,
  deliberate, or be counted as a member in attendance at a meeting of
  the board until the person completes a training program that
  complies with this section.
         (b)  The training program must provide the person with
  information regarding:
               (1)  the legislation that created the department;
               (2)  the programs, functions, rules, and budget of the
  department;
               (3)  the results of the most recent formal audit of the
  department;
               (4)  the requirements of laws relating to open
  meetings, public information, administrative procedure, and
  conflicts of interest; and
               (5)  any applicable ethics policies adopted by the
  department or the Texas Ethics Commission.
         (c)  A person appointed to the board is entitled to
  reimbursement, as provided by the General Appropriations Act, for
  the travel expenses incurred in attending the training program
  regardless of whether the attendance at the program occurs before
  or after the person qualifies for office.
         Sec. 1001.028.  TECHNOLOGICAL SOLUTIONS. The board shall
  implement a policy requiring the department to use appropriate
  technological solutions to improve the department's ability to
  perform its functions. The policy must ensure that the public is
  able to interact with the department on the Internet.
         Sec. 1001.029.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
  RESOLUTION PROCEDURES. (a) The board shall develop and implement a
  policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of department rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the department's
  jurisdiction.
         (b)  The department's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The board shall designate a trained person to:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  serve as a resource for any training needed to
  implement the procedures for negotiated rulemaking or alternative
  dispute resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures, as implemented by the department.
  [Sections 1001.030-1001.040 reserved for expansion]
  SUBCHAPTER C.  PERSONNEL
         Sec. 1001.041.  DIVISION OF RESPONSIBILITIES. The board
  shall develop and implement policies that clearly separate the
  policymaking responsibilities of the board and the management
  responsibilities of the executive director and the staff of the
  department.
  CHAPTER 1002. RULES
         Sec. 1002.001.  GENERAL RULEMAKING AUTHORITY. The board may
  adopt any rules necessary and appropriate to implement the powers
  and duties of the department under this code and other laws of this
  state.
  [Chapters 1003-1005 reserved for expansion]
  CHAPTER 1006.  PUBLIC ACCESS
         Sec. 1006.001.  PUBLIC COMMENT. The board shall develop and
  implement policies that provide the public with a reasonable
  opportunity to appear before the board and to speak on any issue
  under the jurisdiction of the department.
         Sec. 1006.002.  COMPLAINT PROCEDURES. (a) The department
  shall maintain a system to promptly and efficiently act on
  complaints filed with the department. The department shall
  maintain information about parties to the complaint, the subject
  matter of the complaint, a summary of the results of the review or
  investigation of the complaint, and its disposition.
         (b)  The department shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The department shall periodically notify the complaint
  parties of the status of the complaint until final disposition.
  CHAPTER 1007.  STANDARDS OF CONDUCT
         Sec. 1007.001.  APPLICATION OF LAW RELATING TO ETHICAL
  CONDUCT. The board, the executive director, and each employee or
  agent of the department is subject to the code of ethics and the
  standard of conduct imposed by Chapter 572, Government Code, and
  any other law regulating the ethical conduct of state officers and
  employees.
         Sec. 1007.002.  CONFLICTS OF INTEREST. (a) In this section,
  "Texas trade association" means a cooperative and voluntarily
  joined statewide association of business or professional
  competitors in this state designed to assist its members and its
  industry or profession in dealing with mutual business or
  professional problems and in promoting their common interest.
         (b)  A person may not be a member of the board and may not be a
  department employee employed in a "bona fide executive,
  administrative, or professional capacity," as that phrase is used
  for purposes of establishing an exemption to the overtime
  provisions of the federal Fair Labor Standards Act of 1938 (29
  U.S.C. Section 201 et seq.) if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the motor vehicle or
  motor carrier industry or of a tax assessor-collector or law
  enforcement trade association; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the motor vehicle or
  motor carrier industry or of a tax assessor-collector or law
  enforcement trade association.
         (c)  A person may not be a member of the board or act as the
  general counsel to the board or the department if the person is
  required to register as a lobbyist under Chapter 305, Government
  Code, because of the person's activities for compensation on behalf
  of a profession related to the operation of the department.
         Sec. 1007.003.  LOBBYING ACTIVITIES. A person may not serve
  as the executive director or act as the general counsel to the
  department if the person is required to register as a lobbyist under
  Chapter 305, Government Code, because of the person's activities
  for compensation on behalf of an occupation related to the
  operation of the department.
  PART 2.  TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS DEPARTMENT OF
  TRANSPORTATION
  SUBPART A. GENERAL PROVISIONS AND ADMINISTRATION
         SECTION 8.2A.01.  Section 201.931(2), Transportation Code,
  is amended to read as follows:
               (2)  "License" includes[:
                     [(A)     a permit issued by the department that
  authorizes the operation of a vehicle and its load or a combination
  of vehicles and load exceeding size or weight limitations;
                     [(B)     a motor carrier registration issued under
  Chapter 643;
                     [(C)     a vehicle storage facility license issued
  under Chapter 2303, Occupations Code;
                     [(D)]  a license or permit for outdoor advertising
  issued under Chapter 391 or 394[;
                     [(E)     a salvage vehicle dealer or agent license
  issued under Chapter 2302, Occupations Code;
                     [(F)     specially designated or specialized license
  plates issued under Subchapters E and F, Chapter 502; and
                     [(G)     an apportioned registration issued
  according to the International Registration Plan under Section
  502.054].
  SUBPART B. STATE HIGHWAY TOLL PROJECTS
         SECTION 8.2B.01.  Sections 228.055(b) and (h),
  Transportation Code, are amended to read as follows:
         (b)  The department may impose and collect the
  administrative fee, so as to recover the cost of collecting the
  unpaid toll, not to exceed $100.  The department shall send a
  written notice of nonpayment to the registered owner of the vehicle
  at that owner's address as shown in the vehicle registration
  records of the Texas Department of Motor Vehicles [department] by
  first class mail and may require payment not sooner than the 30th
  day after the date the notice was mailed.  The registered owner
  shall pay a separate toll and administrative fee for each event of
  nonpayment under Section 228.054.
         (h)  In this section, "registered owner" means the owner of a
  vehicle as shown on the vehicle registration records of the Texas
  Department of Motor Vehicles [department] or the analogous
  department or agency of another state or country.
         SECTION 8.2B.02.  Section 228.056(b), Transportation Code,
  is amended to read as follows:
         (b)  In the prosecution of an offense under Section
  228.055(c), (d), or (e):
               (1)  it is presumed that the notice of nonpayment was
  received on the fifth day after the date of mailing;
               (2)  a computer record of the Texas Department of Motor
  Vehicles [department] of the registered owner of the vehicle is
  prima facie evidence of its contents and that the defendant was the
  registered owner of the vehicle when the underlying event of
  nonpayment under Section 228.054 occurred; and
               (3)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the underlying event of
  nonpayment under Section 228.054 is prima facie evidence of its
  contents and that the defendant was the lessee of the vehicle when
  the underlying event of nonpayment under Section 228.054 occurred.
  SUBPART C. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND
  HIGHWAYS IN CERTAIN COUNTIES
         SECTION 8.2C.01.  Sections 284.0701(b), (e), and (h),
  Transportation Code, are amended to read as follows:
         (b)  The county may impose and collect the administrative
  cost so as to recover the expense of collecting the unpaid toll, not
  to exceed $100.  The county shall send a written notice of
  nonpayment to the registered owner of the vehicle at that owner's
  address as shown in the vehicle registration records of the Texas
  Department of Motor Vehicles [department] by first-class mail not
  later than the 30th day after the date of the alleged failure to pay
  and may require payment not sooner than the 30th day after the date
  the notice was mailed. The registered owner shall pay a separate
  toll and administrative cost for each event of nonpayment under
  Section 284.070.
         (e)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle transferred ownership
  of the vehicle to another person before the event of nonpayment
  under Section 284.070 occurred, submitted written notice of the
  transfer to the Texas Department of Motor Vehicles [department] in
  accordance with Section 520.023, and before the 30th day after the
  date the notice of nonpayment is mailed, provides to the county the
  name and address of the person to whom the vehicle was transferred.
  If the former owner of the vehicle provides the required
  information within the period prescribed, the county may send a
  notice of nonpayment to the person to whom ownership of the vehicle
  was transferred at the address provided by the former owner by
  first-class mail before the 30th day after the date of receipt of
  the required information from the former owner. The subsequent
  owner of the vehicle for which the proper toll was not paid who is
  mailed a written notice of nonpayment under this subsection and
  fails to pay the proper toll and administrative cost within the time
  specified by the notice of nonpayment commits an offense. The
  subsequent owner shall pay a separate toll and administrative cost
  for each event of nonpayment under Section 284.070. Each failure to
  pay a toll or administrative cost under this subsection is a
  separate offense.
         (h)  In this section, "registered owner" means the owner of a
  vehicle as shown on the vehicle registration records of the Texas
  Department of Motor Vehicles [department] or the analogous
  department or agency of another state or country.
  SUBPART D. CERTIFICATE OF TITLE ACT
         SECTION 8.2D.01.  Section 501.002(3), Transportation Code,
  is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART E. REGISTRATION OF VEHICLES
         SECTION 8.2E.01.  Section 502.001(3), Transportation Code,
  is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2E.02.  Sections 502.053(a) and (b),
  Transportation Code, are amended to read as follows:
         (a)  The department [Texas Department of Transportation]
  shall reimburse the Texas Department of Criminal Justice for the
  cost of manufacturing license plates or registration insignia as
  the license plates or insignia and the invoice for the license
  plates or insignia are delivered to the department [Texas
  Department of Transportation].
         (b)  When manufacturing is started, the Texas Department of
  Criminal Justice, the department [Texas Department of
  Transportation], and the comptroller, after negotiation, shall set
  the price to be paid for each license plate or insignia.  The price
  must be determined from:
               (1)  the cost of metal, paint, and other materials
  purchased;
               (2)  the inmate maintenance cost per day;
               (3)  overhead expenses;
               (4)  miscellaneous charges; and
               (5)  a previously approved amount of profit for the
  work.
  SUBPART F. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES
         SECTION 8.2F.01.  Section 503.001(5), Transportation Code,
  is amended to read as follows:
               (5)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2F.02.  Section 503.003, Transportation Code, is
  amended to read as follows:
         Sec. 503.003.  DISPLAY OR SALE OF NONMOTORIZED VEHICLE OR
  TRAILER.  This chapter does not prohibit the display or sale of a
  nonmotorized vehicle or trailer at a regularly scheduled vehicle or
  boat show with multiple vendors in accordance with [commission]
  rules of the board of the Texas Department of Motor Vehicles.
         SECTION 8.2F.03.  Section 503.009(c), Transportation Code,
  is amended to read as follows:
         (c)  A decision or final order issued under this section is
  final and may not be appealed, as a matter of right, to the board of
  the Texas Department of Motor Vehicles [commission].
         SECTION 8.2F.04.  Sections 503.010 and 503.011,
  Transportation Code, are amended to read as follows:
         Sec. 503.010.  TERM OF GENERAL DISTINGUISHING NUMBER,
  LICENSE, OR LICENSE PLATE.  Each general distinguishing number,
  license, or license plate issued under this chapter is valid for the
  period prescribed by the board of the Texas Department of Motor
  Vehicles [commission].
         Sec. 503.011.  PRORATING FEES.  If the board of the Texas
  Department of Motor Vehicles [commission] prescribes the term of a
  general distinguishing number, license, or license plate under this
  chapter for a period other than one year, the board of the Texas
  Department of Motor Vehicles [commission] shall prorate the
  applicable annual fee required under this chapter as necessary to
  reflect the term of the number, license, or license plate.
         SECTION 8.2F.05.  Section 503.031(a), Transportation Code,
  is amended to read as follows:
         (a)  An applicant for a drive-a-way in-transit license must
  submit to the board of the Texas Department of Motor Vehicles
  [commission] an application containing the information required by
  the board of the Texas Department of Motor Vehicles [commission].
         SECTION 8.2F.06.  Section 503.001(2), Transportation Code,
  is repealed.
  SUBPART G. MISCELLANEOUS PROVISIONS
         SECTION 8.2G.01.  Section 520.001, Transportation Code, is
  amended to read as follows:
         Sec. 520.001.  DEFINITION.  In this chapter, "department"
  means the Texas Department of Motor Vehicles [Transportation].
  SUBPART H. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES
         SECTION 8.2H.01.  Section 551.302, Transportation Code, is
  amended to read as follows:
         Sec. 551.302.  REGISTRATION.  The Texas Department of Motor
  Vehicles [Transportation] may adopt rules relating to the
  registration and issuance of license plates to neighborhood
  electric vehicles.
  SUBPART I. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
         SECTION 8.2I.01.  Section 601.023, Transportation Code, is
  amended to read as follows:
         Sec. 601.023.  PAYMENT OF STATUTORY FEES.  The department
  may pay:
               (1)  a statutory fee required by the Texas Department
  of Motor Vehicles [Transportation] for a certified abstract or in
  connection with suspension of a vehicle registration; or
               (2)  a statutory fee payable to the comptroller for
  issuance of a certificate of deposit required by Section 601.122.
         SECTION 8.2I.02.  Section 601.451, Transportation Code, as
  added by Chapter 892 (S.B. 1670), Acts of the 79th Legislature,
  Regular Session, 2005, is amended to read as follows:
         Sec. 601.451.  DEFINITION.  In this subchapter,
  "implementing agencies" means:
               (1)  the department;
               (2)  the Texas Department of Motor Vehicles 
  [Transportation];
               (3)  the Texas Department of Insurance; and
               (4)  the Department of Information Resources.
         SECTION 8.2I.03.  Subchapter N, Chapter 601, Transportation
  Code, as added by Chapter 1325 (H.B. 3588), Acts of the 78th
  Legislature, Regular Session, 2003, is repealed.
  SUBPART J. GENERAL PROVISIONS RELATING TO VEHICLE SIZE AND WEIGHT
         SECTION 8.2J.01.  Sections 621.001(2), (3), and (4),
  Transportation Code, are amended to read as follows:
               (2)  "Board" ["Commission"] means the board of the
  Texas Department of Motor Vehicles [Transportation Commission].
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
               (4)  "Director" means the executive director of the
  Texas Department of Motor Vehicles [Transportation].
         SECTION 8.2J.02.  Section 621.003(a), Transportation Code,
  is amended to read as follows:
         (a)  The board [commission] by rule may authorize the
  director to enter into with the proper authority of another state an
  agreement that authorizes:
               (1)  the authority of the other state to issue on behalf
  of the department to the owner or operator of a vehicle, or
  combination of vehicles, that exceeds the weight or size limits
  allowed by this state a permit that authorizes the operation or
  transportation on a highway in this state of the vehicle or
  combination of vehicles; and
               (2)  the department to issue on behalf of the authority
  of the other state to the owner or operator of a vehicle, or
  combination of vehicles, that exceeds the weight or size limits
  allowed by that state a permit that authorizes the operation or
  transportation on a highway of that state of the vehicle or
  combination of vehicles.
         SECTION 8.2J.03.  Subchapter A, Chapter 621, Transportation
  Code, is amended by adding Section 621.008 to read as follows:
         Sec. 621.008.  STUDY REGARDING OVERSIZE AND OVERWEIGHT
  VEHICLES.  (a)  In this section, "division" means the motor carrier
  division of the Texas Department of Motor Vehicles.
         (b)  The division and the Texas Department of Transportation
  shall conduct a joint study to determine improvements to the
  regulation of oversize and overweight vehicles.
         (c)  In conducting the study, the division and the Texas
  Department of Transportation shall consider:
               (1)  prohibiting overweight vehicles or vehicle
  combinations from traveling on state highways if the vehicle or
  combination will cause damage to a road or bridge, based on the
  weight or load specifications to which the road or bridge was built;
               (2)  requiring each applicant for a permit under
  Chapter 623 to pay a graduated highway maintenance fee based on
  weight and the amount of damage done by the permitted vehicle or
  vehicle combination to roads and bridges;
               (3)  requiring each fee collected for an overweight or
  oversize vehicle permit to be deposited in the state highway fund;
  and
               (4)  eliminating all exemptions for overweight
  vehicles.
         (d)  Not later than September 1, 2010, the division and the
  Texas Department of Transportation shall report the results of the
  study conducted under this section to the governor, the lieutenant
  governor, the speaker of the house of representatives, and the
  appropriate oversight committee of each house of the legislature.
         (e)  This section expires September 1, 2011.
         SECTION 8.2J.04.  Section 621.102, Transportation Code, is
  amended to read as follows:
         Sec. 621.102.  BOARD'S [COMMISSION'S] AUTHORITY TO SET
  MAXIMUM WEIGHTS.  (a)  The board [commission] may set the maximum
  single axle weight, tandem axle weight, or gross weight of a
  vehicle, or maximum single axle weight, tandem axle weight, or
  gross weight of a combination of vehicles and loads, that may be
  moved over a state highway or a farm or ranch road if the board
  [commission] finds that heavier maximum weight would rapidly
  deteriorate or destroy the road or a bridge or culvert along the
  road. A maximum weight set under this subsection may not exceed the
  maximum set by statute for that weight.
         (b)  The board [commission] must set a maximum weight under
  this section by order entered in its minutes.
         (c)  The board [commission] must make the finding under this
  section on an engineering and traffic investigation and in making
  the finding shall consider the width, condition, and type of
  pavement structures and other circumstances on the road.
         (d)  A maximum weight or load set under this section becomes
  effective on a highway or road when appropriate signs giving notice
  of the maximum weight or load are erected on the highway or road
  under order of the board [commission].
         (e)  A vehicle operating under a permit issued under Section
  623.011, 623.071, 623.094, 623.121, 623.142, 623.181, 623.192, or
  623.212 may operate under the conditions authorized by the permit
  over a road for which the board [commission] has set a maximum
  weight under this section.
         (f)  For the purpose of this section, a farm or ranch road is
  a state highway that is shown in the records of the board
  [commission] to be a farm-to-market or ranch-to-market road.
         (g)  This section does not apply to a vehicle delivering
  groceries, farm products, or liquefied petroleum gas.
         SECTION 8.2J.05.  The heading to Section 621.202,
  Transportation Code, is amended to read as follows:
         Sec. 621.202.  BOARD'S [COMMISSION'S] AUTHORITY TO SET
  MAXIMUM WIDTH.
         SECTION 8.2J.06.  Section 621.202(a), Transportation Code,
  is amended to read as follows:
         (a)  To comply with safety and operational requirements of
  federal law, the board [commission] by order may set the maximum
  width of a vehicle, including the load on the vehicle, at eight feet
  for a designated highway or segment of a highway if the results of
  an engineering and traffic study that includes an analysis of
  structural capacity of bridges and pavements, traffic volume,
  unique climatic conditions, and width of traffic lanes support the
  change.
         SECTION 8.2J.07.  Section 621.301(b), Transportation Code,
  is amended to read as follows:
         (b)  The commissioners court may limit the maximum weights to
  be moved on or over a county road, bridge, or culvert by exercising
  its authority under this subsection in the same manner and under the
  same conditions provided by Section 621.102 for the board
  [commission] to limit maximum weights on highways and roads to
  which that section applies.
         SECTION 8.2J.08.  Section 621.352(a), Transportation Code,
  is amended to read as follows:
         (a)  The board [commission] by rule may establish fees for
  the administration of Section 621.003 in an amount that, when added
  to the other fees collected by the department, does not exceed the
  amount sufficient to recover the actual cost to the department of
  administering that section. An administrative fee collected under
  this section shall be sent to the comptroller for deposit to the
  credit of the state highway fund and may be appropriated only to the
  department for the administration of Section 621.003.
         SECTION 8.2J.09.  Section 621.356, Transportation Code, is
  amended to read as follows:
         Sec. 621.356.  FORM OF PAYMENT.  The board [commission] may
  adopt rules prescribing the method for payment of a fee for a permit
  issued by the department that authorizes the operation of a vehicle
  and its load or a combination of vehicles and load exceeding size or
  weight limitations. The rules may:
               (1)  authorize the use of electronic funds transfer or
  a credit card issued by:
                     (A)  a financial institution chartered by a state
  or the federal government; or
                     (B)  a nationally recognized credit organization
  approved by the board [commission]; and
               (2)  require the payment of a discount or service
  charge for a credit card payment in addition to the fee.
  SUBPART K. SPECIAL PROVISIONS AND EXCEPTIONS FOR OVERSIZE OR
  OVERWEIGHT VEHICLES
         SECTION 8.2K.01.  Section 622.001, Transportation Code, is
  amended to read as follows:
         Sec. 622.001.  DEFINITION.  In this chapter, "department"
  means the Texas Department of Motor Vehicles [Transportation].
         SECTION 8.2K.02.  Section 622.101(a), Transportation Code,
  is amended to read as follows:
         (a)  A single motor vehicle used exclusively to transport
  chile pepper modules, seed cotton, cotton, cotton burrs, or
  equipment used to transport or process chile pepper modules or
  cotton, including a motor vehicle or burr spreader, may not be
  operated on a highway or road if the vehicle is:
               (1)  wider than 10 feet and the highway has not been
  designated by the board [commission] under Section 621.202;
               (2)  longer than 48 feet; or
               (3)  higher than 14 feet 6 inches.
  SUBPART L. PERMITS FOR OVERSIZE OR OVERWEIGHT VEHICLES
         SECTION 8.2L.01.  Section 623.001, Transportation Code, is
  amended by amending Subdivision (1) and adding Subdivision (4) to
  read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
               (4)  "Board" means the board of the Texas Department of
  Motor Vehicles.
         SECTION 8.2L.02.  Sections 623.012(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  An applicant for a permit under Section 623.011, other
  than a permit to operate a vehicle loaded with timber or pulp wood,
  wood chips, cotton, or agricultural products in their natural
  state, shall file with the Texas Department of Transportation
  [department]:
               (1)  a blanket bond; or
               (2)  an irrevocable letter of credit issued by a
  financial institution the deposits of which are guaranteed by the
  Federal Deposit Insurance Corporation.
         (b)  The bond or letter of credit must:
               (1)  be in the amount of $15,000 payable to the Texas
  Department of Transportation [department] and the counties of this
  state;
               (2)  be conditioned that the applicant will pay the
  Texas Department of Transportation [department] for any damage to a
  state highway, and a county for any damage to a road or bridge of the
  county, caused by the operation of the vehicle for which the permit
  is issued at a heavier weight than the maximum weights authorized by
  Subchapter B of Chapter 621 or Section 621.301; and
               (3)  provide that the issuer is to notify the Texas
  Department of Transportation [department] and the applicant in
  writing promptly after a payment is made by the issuer on the bond
  or letter of credit.
         (c)  If an issuer of a bond or letter of credit pays under the
  bond or letter of credit, the permit holder shall file with the
  Texas Department of Transportation [department] before the 31st day
  after the date on which the payment is made:
               (1)  a replacement bond or letter of credit in the
  amount prescribed by Subsection (b) for the original bond or letter
  of credit; or
               (2)  a notification from the issuer of the existing
  bond or letter of credit that the bond or letter of credit has been
  restored to the amount prescribed by Subsection (b).
         SECTION 8.2L.03.  Sections 623.016(a) and (b),
  Transportation Code, are amended to read as follows:
         (a)  The Texas Department of Transportation [department] or
  a county may recover on the bond or letter of credit required for a
  permit issued under Section 623.011 only by a suit against the
  permit holder and the issuer of the bond or letter of credit.
         (b)  Venue for a suit by the Texas Department of
  Transportation [department] is in a district court in:
               (1)  the county in which the defendant resides;
               (2)  the county in which the defendant has its
  principal place of business in this state if the defendant is a
  corporation or partnership; or
               (3)  Travis County if the defendant is a corporation or
  partnership that does not have a principal place of business in this
  state.
         SECTION 8.2L.04.  Section 623.051, Transportation Code, is
  amended to read as follows:
         Sec. 623.051.  CONTRACT ALLOWING OVERSIZE OR OVERWEIGHT
  VEHICLE TO CROSS ROAD; SURETY BOND.  (a)  A person may operate a
  vehicle that cannot comply with one or more of the restrictions of
  Subchapter C of Chapter 621 or Section 621.101 to cross the width of
  any road or highway under the jurisdiction of the Texas Department
  of Transportation [department], other than a controlled access
  highway as defined by Section 203.001, from private property to
  other private property if the person contracts with the Texas
  Transportation Commission [commission] to indemnify the Texas
  Department of Transportation [department] for the cost of
  maintenance and repair of the part of the highway crossed by the
  vehicle.
         (b)  The Texas Transportation Commission [commission] shall
  adopt rules relating to the forms and procedures to be used under
  this section and other matters that the commission considers
  necessary to carry out this section.
         (c)  To protect the safety of the traveling public, minimize
  any delays and inconveniences to the operators of vehicles in
  regular operation, and assure payment for the added wear on the
  highways in proportion to the reduction of service life, the Texas
  Transportation Commission [commission], in adopting rules under
  this section, shall consider:
               (1)  the safety and convenience of the general
  traveling public;
               (2)  the suitability of the roadway and subgrade on the
  road or highway to be crossed, variation in soil grade prevalent in
  the different regions of the state, and the seasonal effects on
  highway load capacity, the highway shoulder design, and other
  highway geometrics; and
               (3)  the state's investment in its highway system.
         (d)  Before exercising any right under a contract under this
  section, a person must execute with a corporate surety authorized
  to do business in this state a surety bond in an amount determined
  by the Texas Transportation Commission [commission] to compensate
  for the cost of maintenance and repairs as provided by this section.
  The bond must be approved by the comptroller and the attorney
  general and must be conditioned on the person fulfilling the
  obligations of the contract.
         SECTION 8.2L.05.  Section 623.052(b), Transportation Code,
  is amended to read as follows:
         (b)  Before a person may operate a vehicle under this
  section, the person must:
               (1)  contract with the Texas Department of
  Transportation [department] to indemnify the Texas Department of
  Transportation [department] for the cost of the maintenance and
  repair for damage caused by a vehicle crossing that part of the
  highway; and
               (2)  execute an adequate surety bond to compensate for
  the cost of maintenance and repair, approved by the comptroller and
  the attorney general, with a corporate surety authorized to do
  business in this state, conditioned on the person fulfilling each
  obligation of the agreement.
         SECTION 8.2L.06.  Section 623.075(a), Transportation Code,
  is amended to read as follows:
         (a)  Before the department may issue a permit under this
  subchapter, the applicant shall file with the Texas Department of
  Transportation [department] a bond in an amount set by the Texas
  Department of Transportation [department], payable to the Texas
  Department of Transportation [department], and conditioned that
  the applicant will pay to the Texas Department of Transportation
  [department] any damage that might be sustained to the highway
  because of the operation of the equipment for which a permit is
  issued.
         SECTION 8.2L.07.  Sections 623.076(b) and (c),
  Transportation Code, are amended to read as follows:
         (b)  The board [Texas Transportation Commission] may adopt
  rules for the payment of a fee under Subsection (a). The rules may:
               (1)  authorize the use of electronic funds transfer;
               (2)  authorize the use of a credit card issued by:
                     (A)  a financial institution chartered by a state
  or the United States; or
                     (B)  a nationally recognized credit organization
  approved by the board [Texas Transportation Commission]; and
               (3)  require the payment of a discount or service
  charge for a credit card payment in addition to the fee prescribed
  by Subsection (a).
         (c)  An application for a permit under Section 623.071(c)(3)
  or (d) must be accompanied by the permit fee established by the
  board [commission] for the permit, not to exceed $7,000.  Of each
  fee collected under this subsection, the department shall send:
               (1)  the first $1,000 to the comptroller for deposit to
  the credit of the general revenue fund; and
               (2)  any amount in excess of $1,000 to the comptroller
  for deposit to the credit of the state highway fund.
         SECTION 8.2L.08.  Sections 623.145, 623.146, 623.195,
  623.196, 623.232, and 623.239, Transportation Code, are amended to
  read as follows:
         Sec. 623.145.  RULES; FORMS AND PROCEDURES; FEES.  (a)  The
  board [Texas Transportation Commission] by rule shall provide for
  the issuance of permits under this subchapter. The rules must
  include each matter the board [commission] determines necessary to
  implement this subchapter and:
               (1)  requirements for forms and procedures used in
  applying for a permit;
               (2)  conditions with regard to route and time of
  movement;
               (3)  requirements for flags, flaggers, and warning
  devices;
               (4)  the fee for a permit; and
               (5)  standards to determine whether a permit is to be
  issued for one trip only or for a period established by the board 
  [commission].
         (b)  In adopting a rule or establishing a fee, the board
  [commission] shall consider and be guided by:
               (1)  the state's investment in its highway system;
               (2)  the safety and convenience of the general
  traveling public;
               (3)  the registration or license fee paid on the
  vehicle for which the permit is requested;
               (4)  the fees paid by vehicles operating within legal
  limits;
               (5)  the suitability of roadways and subgrades on the
  various classes of highways of the system;
               (6)  the variation in soil grade prevalent in the
  different regions of the state;
               (7)  the seasonal effects on highway load capacity;
               (8)  the highway shoulder design and other highway
  geometrics;
               (9)  the load capacity of the highway bridges;
               (10)  administrative costs;
               (11)  added wear on highways; and
               (12)  compensation for inconvenience and necessary
  delays to highway users.
         Sec. 623.146.  VIOLATION OF RULE.  A permit under this
  subchapter is void on the failure of an owner or the owner's
  representative to comply with a rule of the board [commission] or
  with a condition placed on the permit, and immediately on the
  violation, further movement over the highway of an oversize or
  overweight vehicle violates the law regulating the size or weight
  of a vehicle on a public highway.
         Sec. 623.195.  RULES; FORMS AND PROCEDURES; FEES.  (a)  The
  board [Texas Transportation Commission] by rule shall provide for
  the issuance of a permit under this subchapter. The rules must
  include each matter the board [commission] determines necessary to
  implement this subchapter and:
               (1)  requirements for forms and procedures used in
  applying for a permit;
               (2)  conditions with regard to route and time of
  movement;
               (3)  requirements for flags, flaggers, and warning
  devices;
               (4)  the fee for a permit; and
               (5)  standards to determine whether a permit is to be
  issued for one trip only or for a period established by the board 
  [commission].
         (b)  In adopting a rule or establishing a fee, the board
  [commission] shall consider and be guided by:
               (1)  the state's investment in its highway system;
               (2)  the safety and convenience of the general
  traveling public;
               (3)  the registration or license fee paid on the
  vehicle for which the permit is requested;
               (4)  the fees paid by vehicles operating within legal
  limits;
               (5)  the suitability of roadways and subgrades on the
  various classes of highways of the system;
               (6)  the variation in soil grade prevalent in the
  different regions of the state;
               (7)  the seasonal effects on highway load capacity;
               (8)  the highway shoulder design and other highway
  geometrics;
               (9)  the load capacity of highway bridges;
               (10)  administrative costs;
               (11)  added wear on highways; and
               (12)  compensation for inconvenience and necessary
  delays to highway users.
         Sec. 623.196.  VIOLATION OF RULE.  A permit under this
  subchapter is void on the failure of an owner or the owner's
  representative to comply with a rule of the board [commission] or
  with a condition placed on the permit, and immediately on the
  violation, further movement over a highway of an oversize or
  overweight vehicle violates the law regulating the size or weight
  of a vehicle on a public highway.
         Sec. 623.232.  ISSUANCE OF PERMITS.  The board [Texas
  Transportation Commission] may authorize the district to issue
  permits for the movement of oversize or overweight vehicles
  carrying cargo on state highways located in Victoria County.
         Sec. 623.239.  RULES.  The board [Texas Transportation
  Commission] may adopt rules necessary to implement this subchapter.
         SECTION 8.2L.09.  Section 623.252(a), Transportation Code,
  is amended to read as follows:
         (a)  The board [Texas Transportation Commission] may
  authorize the county to issue permits for the movement of oversize
  or overweight vehicles carrying cargo on state highways located in
  Chambers County.
         SECTION 8.2L.10.  Section 623.259, Transportation Code, is
  amended to read as follows:
         Sec. 623.259.  RULES.  The board [Texas Transportation
  Commission] may adopt rules necessary to implement this subchapter.
  SUBPART M. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR
  VEHICLES
         SECTION 8.2M.01.  Section 642.002(d), Transportation Code,
  is amended to read as follows:
         (d)  The Texas Department of Motor Vehicles [Transportation]
  by rule may prescribe additional requirements regarding the form of
  the markings required by Subsection (a)(2) that are not
  inconsistent with that subsection.
  SUBPART N.  MOTOR CARRIER REGISTRATION
         SECTION 8.2N.01.  Section 643.001, Transportation Code, is
  amended by amending Subdivision (1) and adding Subdivision (1-a) to
  read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
               (1-a)  "Board" means the board of the Texas Department
  of Motor Vehicles.
  SUBPART O.  SINGLE STATE REGISTRATION
         SECTION 8.2O.01.  Section 645.001, Transportation Code, is
  amended to read as follows:
         Sec. 645.001.  FEDERAL MOTOR CARRIER REGISTRATION.  The
  Texas Department of Motor Vehicles [Transportation] may, to the
  fullest extent practicable, participate in a federal motor carrier
  registration program under the unified carrier registration system
  as defined by Section 643.001 or a [the] single state registration
  system established under federal law [49 U.S.C. Section 14504].
  SUBPART P.  MOTOR TRANSPORTATION BROKERS
         SECTION 8.2P.01.  Section 646.003(a), Transportation Code,
  is amended to read as follows:
         (a)  A person may not act as a motor transportation broker
  unless the person provides a bond to the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART Q.  FOREIGN COMMERCIAL MOTOR TRANSPORTATION
         SECTION 8.2Q.01.  Section 648.002, Transportation Code, is
  amended to read as follows:
         Sec. 648.002.  RULES. In addition to rules required by this
  chapter, the Texas Department of Motor Vehicles [Transportation],
  the Department of Public Safety, and the Texas Department of
  Insurance may adopt other rules to carry out this chapter.
  SUBPART R. ABANDONED MOTOR VEHICLES
         SECTION 8.2R.01.  Section 683.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART S. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS
         SECTION 8.2S.01.  Section 702.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART T. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM
         SECTION 8.2T.01.  Section 707.001(2), Transportation Code,
  is amended to read as follows:
               (2)  "Owner of a motor vehicle" means the owner of a
  motor vehicle as shown on the motor vehicle registration records of
  the Texas Department of Motor Vehicles [Transportation] or the
  analogous department or agency of another state or country.
         SECTION 8.2T.02.  Section 707.011(b), Transportation Code,
  is amended to read as follows:
         (b)  Not later than the 30th day after the date the violation
  is alleged to have occurred, the designated department, agency, or
  office of the local authority or the entity with which the local
  authority contracts under Section 707.003(a)(1) shall mail the
  notice of violation to the owner at:
               (1)  the owner's address as shown on the registration
  records of the Texas Department of Motor Vehicles [Transportation];
  or
               (2)  if the vehicle is registered in another state or
  country, the owner's address as shown on the motor vehicle
  registration records of the department or agency of the other state
  or country analogous to the Texas Department of Motor Vehicles
  [Transportation].
         SECTION 8.2T.03.  Section 707.017, Transportation Code, is
  amended to read as follows:
         Sec. 707.017.  ENFORCEMENT.  If the owner of a motor vehicle
  is delinquent in the payment of a civil penalty imposed under this
  chapter, the county assessor-collector or the Texas Department of
  Motor Vehicles [Transportation] may refuse to register a motor
  vehicle alleged to have been involved in the violation.
  SUBPART U. SALE OR LEASE OF MOTOR VEHICLES
         SECTION 8.2U.01.  Section 2301.002(9), Occupations Code, is
  amended to read as follows:
               (9)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2U.02.  Section 2301.005(a), Occupations Code, is
  amended to read as follows:
         (a)  A reference in law, including a rule, to the Texas Motor
  Vehicle Commission or to the board means the board of the Texas
  Department of Motor Vehicles, in matters concerning the governance
  of the department of motor vehicles or the policymaking,
  rulemaking, or adjudicative functions of the department. A
  reference in law to the board is a reference to the director of the
  motor vehicles division in matters concerning the administrative
  functions of the division [director, except that a reference to the
  board means the commission if it is related to the adoption of
  rules].
         SECTION 8.2U.03.  Sections 2301.606(a), (b), and (c),
  Occupations Code, are amended to read as follows:
         (a)  The board [director] under board rules shall conduct
  hearings and issue final orders for the implementation and
  enforcement of this subchapter. [An order issued by the director
  under this subchapter is considered a final order of the board.]
         (b)  In a hearing before the board [director] under this
  subchapter, a manufacturer, converter, or distributor may plead and
  prove as an affirmative defense to a remedy under this subchapter
  that a nonconformity:
               (1)  is the result of abuse, neglect, or unauthorized
  modification or alteration of the motor vehicle; or
               (2)  does not substantially impair the use or market
  value of the motor vehicle.
         (c)  The board [director] may not issue an order requiring a
  manufacturer, converter, or distributor to make a refund or to
  replace a motor vehicle unless:
               (1)  the owner or a person on behalf of the owner has
  mailed written notice of the alleged defect or nonconformity to the
  manufacturer, converter, or distributor; and
               (2)  the manufacturer, converter, or distributor has
  been given an opportunity to cure the alleged defect or
  nonconformity.
         SECTION 8.2U.04.  Section 2301.002(33), Occupations Code,
  is repealed.
  SUBPART V. SALVAGE VEHICLE DEALERS
         SECTION 8.2V.01.  Sections 2302.001(2) and (3), Occupations
  Code, are amended to read as follows:
               (2)  "Board" ["Commission"] means the board of the
  Texas Department of Motor Vehicles [Transportation Commission].
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2V.02.  Section 2302.0015(b), Occupations Code,
  is amended to read as follows:
         (b)  For the purpose of enforcing or administering this
  chapter or Chapter 501 or 502, Transportation Code, a member of the
  board [commission], an employee or agent of the board [commission]
  or department, a member of the Public Safety Commission, an officer
  of the Department of Public Safety, or a peace officer may at a
  reasonable time:
               (1)  enter the premises of a business regulated under
  one of those chapters; and
               (2)  inspect or copy any document, record, vehicle,
  part, or other item regulated under one of those chapters.
         SECTION 8.2V.03.  The heading to Subchapter B, Chapter 2302,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER B.  BOARD [COMMISSION] POWERS AND DUTIES
         SECTION 8.2V.04.  Sections 2302.051, 2302.052, and
  2302.053, Occupations Code, are amended to read as follows:
         Sec. 2302.051.  RULES AND ENFORCEMENT POWERS.  The board 
  [commission] shall adopt rules as necessary to administer this
  chapter and may take other action as necessary to enforce this
  chapter.
         Sec. 2302.052.  DUTY TO SET FEES.  The board [commission]
  shall set application fees, license fees, renewal fees, and other
  fees as required to implement this chapter. The board [commission]
  shall set the fees in amounts reasonable and necessary to implement
  and enforce this chapter.
         Sec. 2302.053.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING.  (a)  The board [commission] may not adopt a
  rule under Section 2302.051 restricting advertising or competitive
  bidding by a person who holds a license issued under this chapter
  except to prohibit false, misleading, or deceptive practices by the
  person.
         (b)  The board [commission] may not include in its rules to
  prohibit false, misleading, or deceptive practices a rule that:
               (1)  restricts the use of any advertising medium;
               (2)  restricts the person's personal appearance or use
  of the person's voice in an advertisement;
               (3)  relates to the size or duration of an
  advertisement by the person; or
               (4)  restricts the use of a trade name in advertising by
  the person.
         SECTION 8.2V.05.  Section 2302.108(b), Occupations Code, is
  amended to read as follows:
         (b)  The board [commission] by rule shall establish the
  grounds for denial, suspension, revocation, or reinstatement of a
  license issued under this chapter and the procedures for
  disciplinary action. A rule adopted under this subsection may not
  conflict with a rule adopted by the State Office of Administrative
  Hearings.
         SECTION 8.2V.06.  Section 2302.204, Occupations Code, is
  amended to read as follows:
         Sec. 2302.204.  CASUAL SALES.  This chapter does not apply to
  a person who purchases fewer than three nonrepairable motor
  vehicles or salvage motor vehicles from a salvage vehicle dealer,
  an insurance company or salvage pool operator in a casual sale at
  auction, except that:
               (1)  the board [commission] shall adopt rules as
  necessary to regulate casual sales by salvage vehicle dealers,
  insurance companies, or salvage pool operators and to enforce this
  section; and
               (2)  a salvage vehicle dealer, insurance company, or
  salvage pool operator who sells a motor vehicle in a casual sale
  shall comply with those rules and Subchapter E, Chapter 501,
  Transportation Code.
  PART 3.  CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF
  TRANSPORTATION IN OTHER CODES
  SUBPART A. BUSINESS & COMMERCE CODE
         SECTION 8.3A.01.  Section 51.003(b), Business & Commerce
  Code, is amended to read as follows:
         (b)  In this chapter, "business opportunity" does not
  include:
               (1)  the sale or lease of an established and ongoing
  business or enterprise that has actively conducted business before
  the sale or lease, whether composed of one or more than one
  component business or enterprise, if the sale or lease represents
  an isolated transaction or series of transactions involving a bona
  fide change of ownership or control of the business or enterprise or
  liquidation of the business or enterprise;
               (2)  a sale by a retailer of goods or services under a
  contract or other agreement to sell the inventory of one or more
  ongoing leased departments to a purchaser who is granted the right
  to sell the goods or services within or adjoining a retail business
  establishment as a department or division of the retail business
  establishment;
               (3)  a transaction that is:
                     (A)  regulated by the Texas Department of
  Licensing and Regulation, the Texas Department of Insurance, the
  Texas Real Estate Commission, or the director of the Motor Vehicle
  Division of the Texas Department of Motor Vehicles 
  [Transportation]; and
                     (B)  engaged in by a person licensed by one of
  those agencies;
               (4)  a real estate syndication;
               (5)  a sale or lease to a business enterprise that also
  sells or leases products, equipment, or supplies or performs
  services:
                     (A)  that are not supplied by the seller; and
                     (B)  that the purchaser does not use with the
  seller's products, equipment, supplies, or services;
               (6)  the offer or sale of a franchise as described by
  the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et
  seq.) and its subsequent amendments;
               (7)  the offer or sale of a business opportunity if the
  seller:
                     (A)  has a net worth of $25 million or more
  according to the seller's audited balance sheet as of a date not
  earlier than the 13th month before the date of the transaction; or
                     (B)  is at least 80 percent owned by another
  person who:
                           (i)  in writing unconditionally guarantees
  performance by the person offering the business opportunity plan;
  and
                           (ii)  has a net worth of more than $25
  million according to the person's most recent audited balance sheet
  as of a date not earlier than the 13th month before the date of the
  transaction; or
               (8)  an arrangement defined as a franchise by 16 C.F.R.
  Section 436.2(a) and its subsequent amendments if:
                     (A)  the franchisor complies in all material
  respects in this state with 16 C.F.R. Part 436 and each order or
  other action of the Federal Trade Commission; and
                     (B)  before offering for sale or selling a
  franchise in this state, a person files with the secretary of state
  a notice containing:
                           (i)  the name of the franchisor;
                           (ii)  the name under which the franchisor
  intends to transact business; and
                           (iii)  the franchisor's principal business
  address.
         SECTION 8.3A.02.  Section 105.004(b), Business & Commerce
  Code, is amended to read as follows:
         (b)  The Texas Department of Motor Vehicles [Transportation]
  shall provide a notice that states the provisions of this chapter to
  each person with a disability who is issued:
               (1)  license plates under Section 504.201,
  Transportation Code; or
               (2)  a disabled parking placard under Section 681.004,
  Transportation Code.
  SUBPART B. CODE OF CRIMINAL PROCEDURE
         SECTION 8.3B.01.  Section 1(1), Article 42.22, Code of
  Criminal Procedure, is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.3B.02.  Article 59.04(c), Code of Criminal
  Procedure, is amended to read as follows:
         (c)  If the property is a motor vehicle, and if there is
  reasonable cause to believe that the vehicle has been registered
  under the laws of this state, the attorney representing the state
  shall ask the Texas Department of Motor Vehicles [Transportation]
  to identify from its records the record owner of the vehicle and any
  interest holder. If the addresses of the owner and interest holder
  are not otherwise known, the attorney representing the state shall
  request citation be served on such persons at the address listed
  with the Texas Department of Motor Vehicles [Transportation]. If
  the citation issued to such address is returned unserved, the
  attorney representing the state shall cause a copy of the notice of
  the seizure and intended forfeiture to be posted at the courthouse
  door, to remain there for a period of not less than 30 days. If the
  owner or interest holder does not answer or appear after the notice
  has been so posted, the court shall enter a judgment by default as
  to the owner or interest holder, provided that the attorney
  representing the state files a written motion supported by
  affidavit setting forth the attempted service. An owner or
  interest holder whose interest is forfeited in this manner shall
  not be liable for court costs. If the person in possession of the
  vehicle at the time of the seizure is not the owner or the interest
  holder of the vehicle, notification shall be provided to the
  possessor in the same manner specified for notification to an owner
  or interest holder.
  SUBPART C. FAMILY CODE
         SECTION 8.3C.01.  Section 157.316(b), Family Code, is
  amended to read as follows:
         (b)  If a lien established under this subchapter attaches to
  a motor vehicle, the lien must be perfected in the manner provided
  by Chapter 501, Transportation Code, and the court or Title IV-D
  agency that rendered the order of child support shall include in the
  order a requirement that the obligor surrender to the court or Title
  IV-D agency evidence of the legal ownership of the motor vehicle
  against which the lien may attach. A lien against a motor vehicle
  under this subchapter is not perfected until the obligor's title to
  the vehicle has been surrendered to the court or Title IV-D agency
  and the Texas Department of Motor Vehicles [Transportation] has
  issued a subsequent title that discloses on its face the fact that
  the vehicle is subject to a child support lien under this
  subchapter.
         SECTION 8.3C.02.  Section 232.0022(a), Family Code, is
  amended to read as follows:
         (a)  The Texas Department of Motor Vehicles [Transportation]
  is the appropriate licensing authority for suspension or nonrenewal
  of a motor vehicle registration under this chapter.
         SECTION 8.3C.03.  Section 232.014(b), Family Code, is
  amended to read as follows:
         (b)  A fee collected by the Texas Department of Motor
  Vehicles [Transportation] or the Department of Public Safety shall
  be deposited to the credit of the state highway fund.
         SECTION 8.3C.04.  Section 264.502(b), Family Code, is
  amended to read as follows:
         (b)  The members of the committee who serve under Subsections
  (a)(1) through (3) shall select the following additional committee
  members:
               (1)  a criminal prosecutor involved in prosecuting
  crimes against children;
               (2)  a sheriff;
               (3)  a justice of the peace;
               (4)  a medical examiner;
               (5)  a police chief;
               (6)  a pediatrician experienced in diagnosing and
  treating child abuse and neglect;
               (7)  a child educator;
               (8)  a child mental health provider;
               (9)  a public health professional;
               (10)  a child protective services specialist;
               (11)  a sudden infant death syndrome family service
  provider;
               (12)  a neonatologist;
               (13)  a child advocate;
               (14)  a chief juvenile probation officer;
               (15)  a child abuse prevention specialist;
               (16)  a representative of the Department of Public
  Safety; and
               (17)  a representative of the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART D.  FINANCE CODE
         SECTION 8.3D.01.  Section 306.001(9), Finance Code, is
  amended to read as follows:
               (9)  "Qualified commercial loan":
                     (A)  means:
                           (i)  a commercial loan in which one or more
  persons as part of the same transaction lends, advances, borrows,
  or receives, or is obligated to lend or advance or entitled to
  borrow or receive, money or credit with an aggregate value of:
                                 (a)  $3 million or more if the
  commercial loan is secured by real property; or
                                 (b)  $250,000 or more if the commercial
  loan is not secured by real property and, if the aggregate value of
  the commercial loan is less than $500,000, the loan documents
  contain a written certification from the borrower that:
                                       (1)  the borrower has been
  advised by the lender to seek the advice of an attorney and an
  accountant in connection with the commercial loan; and
                                       (2)  the borrower has had the
  opportunity to seek the advice of an attorney and accountant of the
  borrower's choice in connection with the commercial loan; and
                           (ii)  a renewal or extension of a commercial
  loan described by Paragraph (A), regardless of the principal amount
  of the loan at the time of the renewal or extension; and
                     (B)  does not include a commercial loan made for
  the purpose of financing a business licensed by the [Motor Vehicle
  Board of the] Texas Department of Motor Vehicles [Transportation]
  under Section 2301.251(a), Occupations Code.
         SECTION 8.3D.02.  Section 348.001(10-a), Finance Code, is
  amended to read as follows:
               (10-a)  "Towable recreation vehicle" means a
  nonmotorized vehicle that:
                     (A)  was originally designed and manufactured
  primarily to provide temporary human habitation in conjunction with
  recreational, camping, or seasonal use;
                     (B)  is titled and registered with the Texas
  Department of Motor Vehicles [Transportation] as a travel trailer
  through a county tax assessor-collector;
                     (C)  is permanently built on a single chassis;
                     (D)  contains at least one life support system;
  and
                     (E)  is designed to be towable by a motor vehicle.
         SECTION 8.3D.03.  Section 348.518, Finance Code, is amended
  to read as follows:
         Sec. 348.518.  SHARING OF INFORMATION.  To ensure consistent
  enforcement of law and minimization of regulatory burdens, the
  commissioner and the Texas Department of Motor Vehicles
  [Transportation] may share information, including criminal history
  information, relating to a person licensed under this chapter.
  Information otherwise confidential remains confidential after it
  is shared under this section.
  SUBPART E. GOVERNMENT CODE
         SECTION 8.3E.01.  Section 411.122(d), Government Code, is
  amended to read as follows:
         (d)  The following state agencies are subject to this
  section:
               (1)  Texas Appraiser Licensing and Certification
  Board;
               (2)  Texas Board of Architectural Examiners;
               (3)  Texas Board of Chiropractic Examiners;
               (4)  State Board of Dental Examiners;
               (5)  Texas Board of Professional Engineers;
               (6)  Texas Funeral Service Commission;
               (7)  Texas Board of Professional Geoscientists;
               (8)  Department of State Health Services, except as
  provided by Section 411.110, and agencies attached to the
  department, including:
                     (A)  Texas State Board of Examiners of Dietitians;
                     (B)  Texas State Board of Examiners of Marriage
  and Family Therapists;
                     (C)  Midwifery Board;
                     (D)  Texas State Perfusionist Advisory Committee 
  [Board of Examiners of Perfusionists];
                     (E)  Texas State Board of Examiners of
  Professional Counselors;
                     (F)  Texas State Board of Social Worker Examiners;
                     (G)  State Board of Examiners for Speech-Language
  Pathology and Audiology;
                     (H)  Advisory Board of Athletic Trainers;
                     (I)  State Committee of Examiners in the Fitting
  and Dispensing of Hearing Instruments;
                     (J)  Texas Board of Licensure for Professional
  Medical Physicists; and
                     (K)  Texas Board of Orthotics and Prosthetics;
               (9)  Texas Board of Professional Land Surveying;
               (10)  Texas Department of Licensing and Regulation,
  except as provided by Section 411.093;
               (11)  Texas Commission on Environmental Quality;
               (12)  Texas Board of Occupational Therapy Examiners;
               (13)  Texas Optometry Board;
               (14)  Texas State Board of Pharmacy;
               (15)  Texas Board of Physical Therapy Examiners;
               (16)  Texas State Board of Plumbing Examiners;
               (17)  Texas State Board of Podiatric Medical Examiners;
               (18)  Polygraph Examiners Board;
               (19)  Texas State Board of Examiners of Psychologists;
               (20)  Texas Real Estate Commission;
               (21)  Board of Tax Professional Examiners;
               (22)  Texas Department of Transportation;
               (23)  State Board of Veterinary Medical Examiners;
               (24)  Texas Department of Housing and Community
  Affairs;
               (25)  secretary of state;
               (26)  state fire marshal;
               (27)  Texas Education Agency; [and]
               (28)  Department of Agriculture; and
               (29)  Texas Department of Motor Vehicles.
  SUBPART F. HEALTH AND SAFETY CODE
         SECTION 8.3F.01.  Section 382.209(e), Health and Safety
  Code, is amended to read as follows:
         (e)  A vehicle is not eligible to participate in a low-income
  vehicle repair assistance, retrofit, and accelerated vehicle
  retirement program established under this section unless:
               (1)  the vehicle is capable of being operated;
               (2)  the registration of the vehicle:
                     (A)  is current; and
                     (B)  reflects that the vehicle has been registered
  in the county implementing the program for the 12 months preceding
  the application for participation in the program;
               (3)  the commissioners court of the county
  administering the program determines that the vehicle meets the
  eligibility criteria adopted by the commission, the Texas
  Department of Motor Vehicles [Transportation], and the Public
  Safety Commission;
               (4)  if the vehicle is to be repaired, the repair is
  done by a repair facility recognized by the Department of Public
  Safety, which may be an independent or private entity licensed by
  the state; and
               (5)  if the vehicle is to be retired under this
  subsection and Section 382.213, the replacement vehicle is a
  qualifying motor vehicle.
         SECTION 8.3F.02.  Section 382.210(f), Health and Safety
  Code, is amended to read as follows:
         (f)  In this section, "total cost" means the total amount of
  money paid or to be paid for the purchase of a motor vehicle as set
  forth as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of Motor
  Vehicles [Transportation].  In a transaction that does not involve
  the use of that form, the term means an amount of money that is
  equivalent, or substantially equivalent, to the amount that would
  appear as "sales price" on the Application for Texas Certificate of
  Title if that form were involved.
         SECTION 8.3F.03.  Section 461.017(a), Health and Safety
  Code, is amended to read as follows:
         (a)  The Drug Demand Reduction Advisory Committee is
  composed of the following members:
               (1)  five representatives of the public from different
  geographic regions of the state who have knowledge and expertise in
  issues relating to reducing drug demand and who are appointed by the
  commissioner [executive director] of the Department of State Health
  Services [Texas Commission on Alcohol and Drug Abuse]; and
               (2)  one representative of each of the following
  agencies or offices who is appointed by the executive director or
  commissioner of the agency or office and who is directly involved in
  the agency's or office's policies, programs, or funding activities
  relating to reducing drug demand:
                     (A)  the criminal justice division of the
  governor's office;
                     (B)  the Criminal Justice Policy Council;
                     (C)  the Department of Family and Protective [and
  Regulatory] Services;
                     (D)  the Department of Public Safety of the State
  of Texas;
                     (E)  the Health and Human Services Commission;
                     (F)  the Texas Alcoholic Beverage Commission;
                     (G)  the Department of State Health Services 
  [Texas Commission on Alcohol and Drug Abuse];
                     (H)  the Texas Council on Offenders with Mental
  Impairments;
                     (I)  the Texas Department of Criminal Justice;
                     (J)  the [Texas Department of] Health and[;
                     [(K)  the Texas Department of] Human Services
  Commission;
                     (K) [(L)]  the [Texas] Department of Aging and
  Disability Services [Mental Health and Mental Retardation];
                     (L) [(M)]  the Texas Education Agency;
                     (M) [(N)]  the Texas Juvenile Probation
  Commission;
                     (N) [(O)]  the Texas Youth Commission;
                     (O) [(P)]  the Department of Assistive and
  Rehabilitative Services [Texas Rehabilitation Commission];
                     (P) [(Q)]  the Texas Workforce Commission;
                     (Q) [(R)]  the Texas Department of Motor Vehicles
  [Transportation];
                     (R) [(S)]  the comptroller of public accounts;
  and
                     (S) [(T)]  the adjutant general's department.
  SUBPART G. HUMAN RESOURCES CODE
         SECTION 8.3G.01.  Section 22.041, Human Resources Code, is
  amended to read as follows:
         Sec. 22.041.  THIRD-PARTY INFORMATION.  Notwithstanding any
  other provision of this code, the department may use information
  obtained from a third party to verify the assets and resources of a
  person for purposes of determining the person's eligibility and
  need for medical assistance, financial assistance, or nutritional
  assistance. Third-party information includes information obtained
  from:
               (1)  a consumer reporting agency, as defined by Section
  20.01, Business & Commerce Code;
               (2)  an appraisal district; or
               (3)  the Texas Department of Motor Vehicles
  [Transportation's] vehicle registration record database.
         SECTION 8.3G.02.  Section 32.026(g), Human Resources Code,
  is amended to read as follows:
         (g)  Notwithstanding any other provision of this code, the
  department may use information obtained from a third party to
  verify the assets and resources of a person for purposes of
  determining the person's eligibility and need for medical
  assistance. Third-party information includes information obtained
  from:
               (1)  a consumer reporting agency, as defined by Section
  20.01, Business & Commerce Code;
               (2)  an appraisal district; or
               (3)  the Texas Department of Motor Vehicles
  [Transportation's] vehicle registration record database.
  SUBPART H. LOCAL GOVERNMENT CODE
         SECTION 8.3H.01.  Section 130.006, Local Government Code, is
  amended to read as follows:
         Sec. 130.006.  PROCEDURES FOR COLLECTION OF DISHONORED
  CHECKS AND INVOICES.  A county tax assessor-collector may establish
  procedures for the collection of dishonored checks and credit card
  invoices. The procedures may include:
               (1)  official notification to the maker that the check
  or invoice has not been honored and that the receipt, registration,
  certificate, or other instrument issued on the receipt of the check
  or invoice is not valid until payment of the fee or tax is made;
               (2)  notification of the sheriff or other law
  enforcement officers that a check or credit card invoice has not
  been honored and that the receipt, registration, certificate, or
  other instrument held by the maker is not valid; and
               (3)  notification to the Texas Department of Motor
  Vehicles [Transportation], the comptroller of public accounts, or
  the Department of Public Safety that the receipt, registration,
  certificate, or other instrument held by the maker is not valid.
         SECTION 8.3H.02.  Section 130.007, Local Government Code, is
  amended to read as follows:
         Sec. 130.007.  REMISSION TO STATE NOT REQUIRED; STATE
  ASSISTANCE IN COLLECTION.  (a)  If a fee or tax is required to be
  remitted to the comptroller or the Texas Department of Motor
  Vehicles [Transportation] and if payment was made to the county tax
  assessor-collector by a check that was not honored by the drawee
  bank or by a credit card invoice that was not honored by the credit
  card issuer, the amount of the fee or tax is not required to be
  remitted, but the assessor-collector shall notify the appropriate
  department of:
               (1)  the amount of the fee or tax;
               (2)  the type of fee or tax involved; and
               (3)  the name and address of the maker.
         (b)  The Texas Department of Motor Vehicles [Transportation]
  and the comptroller shall assist the county tax assessor-collector
  in collecting the fee or tax and may cancel or revoke any receipt,
  registration, certificate, or other instrument issued in the name
  of the state conditioned on the payment of the fee or tax.
         SECTION 8.3H.03.  Section 130.008, Local Government Code, is
  amended to read as follows:
         Sec. 130.008.  LIABILITY OF TAX COLLECTOR FOR VIOLATIONS OF
  SUBCHAPTER.  If the comptroller or the Texas Department of Motor
  Vehicles [Transportation] determines that the county tax
  assessor-collector has accepted payment for fees and taxes to be
  remitted to that department in violation of Section 130.004 or that
  more than two percent of the fees and taxes to be received from the
  assessor-collector are not remitted because of the acceptance of
  checks that are not honored by the drawee bank or of credit card
  invoices that are not honored by the credit card issuer, the
  department may notify the assessor-collector that the
  assessor-collector may not accept a check or credit card invoice
  for the payment of any fee or tax to be remitted to that department.
  A county tax assessor-collector who accepts a check or credit card
  invoice for the payment of a fee or tax, after notice that the
  assessor-collector may not receive a check or credit card invoice
  for the payment of fees or taxes to be remitted to a department, is
  liable to the state for the amount of the check or credit card
  invoice accepted.
         SECTION 8.3H.04.  Section 130.009, Local Government Code, is
  amended to read as follows:
         Sec. 130.009.  STATE RULES.  The comptroller and the Texas
  Department of Motor Vehicles [Transportation] may make rules
  concerning the acceptance of checks or credit card invoices by a
  county tax assessor-collector and for the collection of dishonored
  checks or credit card invoices.
  SUBPART I. OCCUPATIONS CODE
         SECTION 8.3I.01.  Section 554.009(c), Occupations Code, is
  amended to read as follows:
         (c)  The board may register a vehicle with the Texas
  Department of Motor Vehicles [Transportation] in an alias name only
  for investigative personnel.
  SUBPART J. PENAL CODE
         SECTION 8.3J.01.  Section 31.03(c), Penal Code, is amended
  to read as follows:
         (c)  For purposes of Subsection (b):
               (1)  evidence that the actor has previously
  participated in recent transactions other than, but similar to,
  that which the prosecution is based is admissible for the purpose of
  showing knowledge or intent and the issues of knowledge or intent
  are raised by the actor's plea of not guilty;
               (2)  the testimony of an accomplice shall be
  corroborated by proof that tends to connect the actor to the crime,
  but the actor's knowledge or intent may be established by the
  uncorroborated testimony of the accomplice;
               (3)  an actor engaged in the business of buying and
  selling used or secondhand personal property, or lending money on
  the security of personal property deposited with the actor, is
  presumed to know upon receipt by the actor of stolen property (other
  than a motor vehicle subject to Chapter 501, Transportation Code)
  that the property has been previously stolen from another if the
  actor pays for or loans against the property $25 or more (or
  consideration of equivalent value) and the actor knowingly or
  recklessly:
                     (A)  fails to record the name, address, and
  physical description or identification number of the seller or
  pledgor;
                     (B)  fails to record a complete description of the
  property, including the serial number, if reasonably available, or
  other identifying characteristics; or
                     (C)  fails to obtain a signed warranty from the
  seller or pledgor that the seller or pledgor has the right to
  possess the property. It is the express intent of this provision
  that the presumption arises unless the actor complies with each of
  the numbered requirements;
               (4)  for the purposes of Subdivision (3)(A),
  "identification number" means driver's license number, military
  identification number, identification certificate, or other
  official number capable of identifying an individual;
               (5)  stolen property does not lose its character as
  stolen when recovered by any law enforcement agency;
               (6)  an actor engaged in the business of obtaining
  abandoned or wrecked motor vehicles or parts of an abandoned or
  wrecked motor vehicle for resale, disposal, scrap, repair,
  rebuilding, demolition, or other form of salvage is presumed to
  know on receipt by the actor of stolen property that the property
  has been previously stolen from another if the actor knowingly or
  recklessly:
                     (A)  fails to maintain an accurate and legible
  inventory of each motor vehicle component part purchased by or
  delivered to the actor, including the date of purchase or delivery,
  the name, age, address, sex, and driver's license number of the
  seller or person making the delivery, the license plate number of
  the motor vehicle in which the part was delivered, a complete
  description of the part, and the vehicle identification number of
  the motor vehicle from which the part was removed, or in lieu of
  maintaining an inventory, fails to record the name and certificate
  of inventory number of the person who dismantled the motor vehicle
  from which the part was obtained;
                     (B)  fails on receipt of a motor vehicle to obtain
  a certificate of authority, sales receipt, or transfer document as
  required by Chapter 683, Transportation Code, or a certificate of
  title showing that the motor vehicle is not subject to a lien or
  that all recorded liens on the motor vehicle have been released; or
                     (C)  fails on receipt of a motor vehicle to
  immediately remove an unexpired license plate from the motor
  vehicle, to keep the plate in a secure and locked place, or to
  maintain an inventory, on forms provided by the Texas Department of
  Motor Vehicles [Transportation], of license plates kept under this
  paragraph, including for each plate or set of plates the license
  plate number and the make, motor number, and vehicle identification
  number of the motor vehicle from which the plate was removed;
               (7)  an actor who purchases or receives a used or
  secondhand motor vehicle is presumed to know on receipt by the actor
  of the motor vehicle that the motor vehicle has been previously
  stolen from another if the actor knowingly or recklessly:
                     (A)  fails to report to the Texas Department of
  Motor Vehicles [Transportation] the failure of the person who sold
  or delivered the motor vehicle to the actor to deliver to the actor
  a properly executed certificate of title to the motor vehicle at the
  time the motor vehicle was delivered; or
                     (B)  fails to file with the county tax
  assessor-collector of the county in which the actor received the
  motor vehicle, not later than the 20th day after the date the actor
  received the motor vehicle, the registration license receipt and
  certificate of title or evidence of title delivered to the actor in
  accordance with Subchapter D, Chapter 520, Transportation Code, at
  the time the motor vehicle was delivered;
               (8)  an actor who purchases or receives from any source
  other than a licensed retailer or distributor of pesticides a
  restricted-use pesticide or a state-limited-use pesticide or a
  compound, mixture, or preparation containing a restricted-use or
  state-limited-use pesticide is presumed to know on receipt by the
  actor of the pesticide or compound, mixture, or preparation that
  the pesticide or compound, mixture, or preparation has been
  previously stolen from another if the actor:
                     (A)  fails to record the name, address, and
  physical description of the seller or pledgor;
                     (B)  fails to record a complete description of the
  amount and type of pesticide or compound, mixture, or preparation
  purchased or received; and
                     (C)  fails to obtain a signed warranty from the
  seller or pledgor that the seller or pledgor has the right to
  possess the property; and
               (9)  an actor who is subject to Section 409, Packers and
  Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
  a commission merchant by representing that the actor will make
  prompt payment is presumed to have induced the commission
  merchant's consent by deception if the actor fails to make full
  payment in accordance with Section 409, Packers and Stockyards Act
  (7 U.S.C. Section 228b).
         SECTION 8.3J.02.  Section 31.11(b), Penal Code, is amended
  to read as follows:
         (b)  It is an affirmative defense to prosecution under this
  section that the person was:
               (1)  the owner or acting with the effective consent of
  the owner of the property involved;
               (2)  a peace officer acting in the actual discharge of
  official duties; or
               (3)  acting with respect to a number assigned to a
  vehicle by the Texas Department of Transportation or the Texas
  Department of Motor Vehicles, as applicable, and the person was:
                     (A)  in the actual discharge of official duties as
  an employee or agent of the department; or
                     (B)  in full compliance with the rules of the
  department as an applicant for an assigned number approved by the
  department.
  SUBPART K. TAX CODE
         SECTION 8.3K.01.  Section 21.02(d), Tax Code, is amended to
  read as follows:
         (d)  A motor vehicle does not have taxable situs in a taxing
  unit under Subsection (a)(1) if, on January 1, the vehicle:
               (1)  has been located for less than 60 days at a place
  of business of a person who holds a wholesale motor vehicle auction
  general distinguishing number issued by the Texas Department of
  Motor Vehicles [Transportation] under Chapter 503, Transportation
  Code, for that place of business; and
               (2)  is offered for resale.
         SECTION 8.3K.02.  Section 22.04(d), Tax Code, is amended to
  read as follows:
         (d)  This section does not apply to a motor vehicle that on
  January 1 is located at a place of business of a person who holds a
  wholesale motor vehicle auction general distinguishing number
  issued by the Texas Department of Motor Vehicles [Transportation]
  under Chapter 503, Transportation Code, for that place of business,
  and that:
               (1)  has not acquired taxable situs under Section
  21.02(a)(1) in a taxing unit that participates in the appraisal
  district because the vehicle is described by Section 21.02(d);
               (2)  is offered for sale by a dealer who holds a
  dealer's general distinguishing number issued by the Texas
  Department of Motor Vehicles [Transportation] under Chapter 503,
  Transportation Code, and whose inventory of motor vehicles is
  subject to taxation in the manner provided by Sections 23.121 and
  23.122; or
               (3)  is collateral possessed by a lienholder and
  offered for sale in foreclosure of a security interest.
         SECTION 8.3K.03.  Sections 23.121(a)(3), (11), and (14), Tax
  Code, are amended to read as follows:
               (3)  "Dealer" means a person who holds a dealer's
  general distinguishing number issued by the Texas Department of
  Motor Vehicles [Transportation] under the authority of Chapter 503,
  Transportation Code, or who is legally recognized as a motor
  vehicle dealer pursuant to the law of another state and who complies
  with the terms of Section 152.063(f).  The term does not include:
                     (A)  a person who holds a manufacturer's license
  issued under Chapter 2301, Occupations Code [by the Motor Vehicle
  Board of the Texas Department of Transportation];
                     (B)  an entity that is owned or controlled by a
  person who holds a manufacturer's license issued under Chapter
  2301, Occupations Code [by the Motor Vehicle Board of the Texas
  Department of Transportation]; or
                     (C)  a dealer whose general distinguishing number
  issued by the Texas Department of Motor Vehicles [Transportation]
  under the authority of Chapter 503, Transportation Code, prohibits
  the dealer from selling a vehicle to any person except a dealer.
               (11)  "Sales price" means the total amount of money
  paid or to be paid for the purchase of a motor vehicle as set forth
  as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of Motor
  Vehicles [Transportation]. In a transaction that does not involve
  the use of that form, the term means an amount of money that is
  equivalent, or substantially equivalent, to the amount that would
  appear as "sales price" on the Application for Texas Certificate of
  Title if that form were involved.
               (14)  "Towable recreational vehicle" means a
  nonmotorized vehicle that is designed for temporary human
  habitation for recreational, camping, or seasonal use and:
                     (A)  is titled and registered with the Texas
  Department of Motor Vehicles [Transportation] through the office of
  the collector;
                     (B)  is permanently built on a single chassis;
                     (C)  contains one or more life support systems;
  and
                     (D)  is designed to be towable by a motor vehicle.
         SECTION 8.3K.04.  Sections 23.121(f), (g), and (h), Tax
  Code, are amended to read as follows:
         (f)  The comptroller shall promulgate a form entitled
  Dealer's Motor Vehicle Inventory Declaration. Except as provided
  by Section 23.122(l) [of this code], not later than February 1 of
  each year, or, in the case of a dealer who was not in business on
  January 1, not later than 30 days after commencement of business,
  each dealer shall file a declaration with the chief appraiser and
  file a copy with the collector. For purposes of this subsection, a
  dealer is presumed to have commenced business on the date of
  issuance to the dealer of a dealer's general distinguishing number
  as provided by Chapter 503, Transportation Code. Notwithstanding
  the presumption created by this subsection, a chief appraiser may,
  at his or her sole discretion, designate as the date on which a
  dealer commenced business a date other than the date of issuance to
  the dealer of a dealer's general distinguishing number. The
  declaration is sufficient to comply with this subsection if it sets
  forth the following information:
               (1)  the name and business address of each location at
  which the dealer owner conducts business;
               (2)  each of the dealer's general distinguishing
  numbers issued by the Texas Department of Motor Vehicles
  [Transportation];
               (3)  a statement that the dealer owner is the owner of a
  dealer's motor vehicle inventory; and
               (4)  the market value of the dealer's motor vehicle
  inventory for the current tax year as computed under Section
  23.121(b) [of this code].
         (g)  Under the terms provided by this subsection, the chief
  appraiser may examine the books and records of the holder of a
  general distinguishing number issued by the Texas Department of
  Motor Vehicles [Transportation]. A request made under this
  subsection must be made in writing, delivered personally to the
  custodian of the records, at the location for which the general
  distinguishing number has been issued, must provide a period not
  less than 15 days for the person to respond to the request, and must
  state that the person to whom it is addressed has the right to seek
  judicial relief from compliance with the request. In a request made
  under this section the chief appraiser may examine:
               (1)  the document issued by the Texas Department of
  Motor Vehicles [Transportation] showing the person's general
  distinguishing number;
               (2)  documentation appropriate to allow the chief
  appraiser to ascertain the applicability of this section and
  Section 23.122 [of this code] to the person;
               (3)  sales records to substantiate information set
  forth in the dealer's declaration filed by the person.
         (h)  If a dealer fails to file a declaration as required by
  this section, or if, on the declaration required by this section, a
  dealer reports the sale of fewer than five motor vehicles in the
  prior year, the chief appraiser shall report that fact to the Texas
  Department of Motor Vehicles [Transportation] and the department
  shall initiate termination proceedings. The chief appraiser shall
  include with the report a copy of a declaration, if any, indicating
  the sale by a dealer of fewer than five motor vehicles in the prior
  year. A report by a chief appraiser to the Texas Department of
  Motor Vehicles [Transportation] as provided by this subsection is
  prima facie grounds for the cancellation of the dealer's general
  distinguishing number under Section 503.038(a)(9), Transportation
  Code, or for refusal by the Texas Department of Motor Vehicles
  [Transportation] to renew the dealer's general distinguishing
  number.
         SECTION 8.3K.05.  Section 23.123(c), Tax Code, is amended to
  read as follows:
         (c)  Information made confidential by this section may be
  disclosed:
               (1)  in a judicial or administrative proceeding
  pursuant to a lawful subpoena;
               (2)  to the person who filed the declaration or
  statement or to that person's representative authorized by the
  person in writing to receive the information;
               (3)  to the comptroller or an employee of the
  comptroller authorized by the comptroller to receive the
  information;
               (4)  to a collector or chief appraiser;
               (5)  to a district attorney, criminal district attorney
  or county attorney involved in the enforcement of a penalty imposed
  pursuant to Section 23.121 or Section 23.122 [of this code];
               (6)  for statistical purposes if in a form that does not
  identify specific property or a specific property owner;
               (7)  if and to the extent that the information is
  required for inclusion in a public document or record that the
  appraisal or collection office is required by law to prepare or
  maintain; or
               (8)  to the Texas Department of Motor Vehicles
  [Transportation] for use by that department in auditing compliance
  of its licensees with appropriate provisions of applicable law.
         SECTION 8.3K.06.  Section 23.124(a)(11), Tax Code, is
  amended to read as follows:
               (11)  "Sales price" means the total amount of money
  paid or to be paid for the purchase of:
                     (A)  a vessel, other than a trailer that is
  treated as a vessel, as set forth as "sales price" in the form
  entitled "Application for Texas Certificate of Number/Title for
  Boat/Seller, Donor or Trader's Affidavit" promulgated by the Parks
  and Wildlife Department;
                     (B)  an outboard motor as set forth as "sales
  price" in the form entitled "Application for Texas Certificate of
  Title for an Outboard Motor/Seller, Donor or Trader's Affidavit"
  promulgated by the Parks and Wildlife Department; or
                     (C)  a trailer that is treated as a vessel as set
  forth as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of Motor
  Vehicles [Transportation].
               In a transaction involving a vessel, an outboard motor,
  or a trailer that is treated as a vessel that does not involve the
  use of one of these forms, the term means an amount of money that is
  equivalent, or substantially equivalent, to the amount that would
  appear as "sales price" on the Application for Texas Certificate of
  Number/Title for Boat/Seller, Donor or Trader's Affidavit, the
  Application for Texas Certificate of Title for an Outboard
  Motor/Seller, Donor or Trader's Affidavit, or the Application for
  Texas Certificate of Title if one of these forms were involved.
         SECTION 8.3K.07.  Section 113.011, Tax Code, is amended to
  read as follows:
         Sec. 113.011.  LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR
  VEHICLES [TRANSPORTATION].  The comptroller shall furnish to the
  Texas Department of Motor Vehicles [Transportation] each release of
  a tax lien filed by the comptroller with that department.
         SECTION 8.3K.08.  Sections 152.0412(a) and (f), Tax Code,
  are amended to read as follows:
         (a)  In this section, "standard presumptive value" means the
  private-party transaction value of a motor vehicle, as determined
  by the Texas Department of Motor Vehicles [Transportation] based on
  an appropriate regional guidebook of a nationally recognized motor
  vehicle value guide service, or based on another motor vehicle
  guide publication that the department determines is appropriate if
  a private-party transaction value for the motor vehicle is not
  available from a regional guidebook described by this subsection.
         (f)  The Texas Department of Motor Vehicles [Transportation]
  shall maintain information on the standard presumptive values of
  motor vehicles as part of the department's registration and title
  system.  The department shall update the information at least
  quarterly each calendar year and publish, electronically or
  otherwise, the updated information.
         SECTION 8.3K.09.  Section 152.042, Tax Code, is amended to
  read as follows:
         Sec. 152.042.  COLLECTION OF TAX ON METAL DEALER PLATES.  A
  person required to pay the tax imposed by Section 152.027 shall pay
  the tax to the Texas Department of Motor Vehicles [Transportation],
  and the department may not issue the metal dealer's plates until the
  tax is paid.
         SECTION 8.3K.10.  Section 152.121(b), Tax Code, is amended
  to read as follows:
         (b)  Taxes on metal dealer plates collected by the Texas
  Department of Motor Vehicles [Transportation] shall be deposited by
  the department in the state treasury in the same manner as are other
  taxes collected under this chapter.
         SECTION 8.3K.11.  Section 162.001(52), Tax Code, is amended
  to read as follows:
               (52)  "Registered gross weight" means the total weight
  of the vehicle and carrying capacity shown on the registration
  certificate issued by the Texas Department of Motor Vehicles
  [Transportation].
  PART 4.  TRANSFERS OF CERTAIN POWERS, DUTIES, OBLIGATIONS, AND
  RIGHTS OF ACTION
         SECTION 8.4.01.  (a) All powers, duties, obligations, and
  rights of action of the Motor Carrier Division, the Motor Vehicle
  Division, and the Vehicle Titles and Registration Division of the
  Texas Department of Transportation are transferred to the Texas
  Department of Motor Vehicles, and all powers, duties, obligations,
  and rights of action of the Texas Transportation Commission in
  connection or associated with those divisions of the Texas
  Department of Transportation are transferred to the board of the
  Texas Department of Motor Vehicles on December 1, 2009.
         (b)  In connection with the transfers required by Subsection
  (a) of this section, the personnel, furniture, computers, other
  property and equipment, files, and related materials used by the
  Motor Carrier Division, the Motor Vehicle Division, and the Vehicle
  Titles and Registration Division of the Texas Department of
  Transportation are transferred to the Texas Department of Motor
  Vehicles.
         (c)  The Texas Department of Motor Vehicles shall continue
  any proceeding involving the Motor Carrier Division, the Motor
  Vehicle Division, or the Vehicle Titles and Registration Division
  of the Texas Department of Transportation that was brought before
  the effective date of this Act in accordance with the law in effect
  on the date the proceeding was brought, and the former law is
  continued in effect for that purpose.
         (d)  A certificate, license, document, permit, registration,
  or other authorization issued by the Motor Carrier Division, the
  Motor Vehicle Division, or the Vehicle Titles and Registration
  Division of the Texas Department of Transportation that is in
  effect on the effective date of this Act remains valid for the
  period for which it was issued unless suspended or revoked by the
  Texas Department of Motor Vehicles.
         (e)  A rule adopted by the Texas Transportation Commission or
  the director of the Texas Department of Transportation in
  connection with or relating to the Motor Carrier Division, the
  Motor Vehicle Division, or the Vehicle Titles and Registration
  Division of that department continues in effect until it is amended
  or repealed by the board of the Texas Department of Motor Vehicles.
         (f)  The unobligated and unexpended balance of any
  appropriations made to the Texas Department of Transportation in
  connection with or relating to the Motor Carrier Division, the
  Motor Vehicle Division, and the Vehicle Titles and Registration
  Division of that department for the state fiscal biennium ending
  August 31, 2009, is transferred and reappropriated to the Texas
  Department of Motor Vehicles for the purpose of implementing the
  powers, duties, obligations, and rights of action transferred to
  that department under Subsection (a) of this section.
         SECTION 8.4.02.  The Transportation Legislative Oversight
  Committee shall oversee the coordination and collaboration between
  the Texas Department of Transportation and the Texas Department of
  Motor Vehicles during the transitions required by Section 8.4.01 of
  this article.
  PART 5.  APPOINTMENT OF BOARD
         SECTION 8.5.01.  Not later than December 1, 2009, the
  governor shall appoint the members of the board of the Texas
  Department of Motor Vehicles in accordance with Subchapter B,
  Chapter 1001, Transportation Code, as added by this article.
  ARTICLE 9. RAIL TRANSPORTATION DIVISION
         SECTION 9.01.  Section 91.001, Transportation Code, is
  amended by adding Subdivision (3-a) to read as follows:
               (3-a)  "Division" means the rail transportation
  division of the department.
         SECTION 9.02.  Subchapter A, Chapter 91, Transportation
  Code, is amended by adding Section 91.0041 to read as follows:
         Sec. 91.0041.  DUTIES OF RAIL TRANSPORTATION DIVISION. In
  addition to any other duty imposed on the division, the division
  shall:
               (1)  assure that rail transportation is an integral
  part of the department's transportation planning process;
               (2)  coordinate and oversee rail projects that are
  financed with money distributed by the department, including money
  from the Texas rail relocation and improvement fund;
               (3)  develop and plan for improved passenger and
  freight rail facilities and services in this state; and
               (4)  coordinate the efforts of the department, the
  federal government, political subdivisions, and private entities
  to continue the development of rail transportation facilities and
  services in this state.
         SECTION 9.03.  Subtitle I, Title 5, Transportation Code, is
  amended by adding Chapter 175 to read as follows:
  CHAPTER 175. BORDER REGION HIGHER-SPEED RAIL AUTHORITIES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 175.001.  DEFINITIONS. In this chapter:
               (1)  "Authority" means a border region higher-speed
  rail authority created under this chapter.
               (2)  "Authority property" means all property an
  authority owns or leases under a long-term lease.
               (3)  "Board" means an authority's board of directors.
               (4)  "Border region" means the Texas-Louisiana border
  region or the Texas-Mexico border region, as defined by Section
  2056.002, Government Code.
               (5)  "Commission" means the Texas Transportation
  Commission.
               (6)  "Department" means the Texas Department of
  Transportation.
               (7)  "Director" means a board member.
               (8)  "Higher-speed rail" means the rail technology that
  permits the operation of rolling stock between scheduled stops at
  speeds greater than 70 miles per hour but less than 110 miles per
  hour.
               (9)  "Higher-speed rail facility" means any property
  necessary for the transportation of passengers and baggage between
  points in a border region by higher-speed rail. The term includes
  rolling stock, locomotives, stations, parking areas, and rail
  lines.
               (10)  "System" means all of the higher-speed rail and
  intermodal facilities leased or owned by or operated on behalf of an
  authority.
  [Sections 175.002-175.050 reserved for expansion]
  SUBCHAPTER B. CREATION
         Sec. 175.051.  CREATION OF AUTHORITIES. The commission by
  order may authorize the creation of an authority in each border
  region for the purposes of financing, acquiring property for,
  constructing, maintaining, operating, and improving a higher-speed
  rail system in each border region.
  [Sections 175.052-175.100 reserved for expansion]
  SUBCHAPTER C. GOVERNANCE
         Sec. 175.101.  COMPOSITION OF BOARDS. (a) The governing
  body of an authority in the Texas-Louisiana border region is a board
  of seven directors consisting of:
               (1)  the county judges of the five most populous
  counties in the region; and
               (2)  two directors selected by the county judges to
  represent the remaining counties in the region.
         (b)  The governing body of an authority in the Texas-Mexico
  border region is a board of 11 directors consisting of:
               (1)  the county judges of the seven most populous
  counties in the region; and
               (2)  four directors selected by the county judges to
  represent the remaining counties in the region.
         Sec. 175.102.  PRESIDING OFFICER. (a) The directors shall
  elect one director as presiding officer.
         (b)  The presiding officer may select another director to
  preside in the absence of the presiding officer.
         Sec. 175.103.  MEETINGS. The presiding officer shall call
  at least one meeting of the board each year and may call other
  meetings as the presiding officer determines are appropriate.
         Sec. 175.104.  COMPENSATION; REIMBURSEMENT. A director is
  not entitled to compensation for serving as a director but is
  entitled to reimbursement for reasonable expenses incurred while
  serving as a director.
         Sec. 175.105.  RULES FOR PROCEEDINGS. The board shall adopt
  rules for its proceedings and appoint an executive committee.
         Sec. 175.106.  EMPLOYEES. The board may employ and
  compensate persons to carry out the powers and duties of the
  authority.
         Sec. 175.107.  CONFLICTS OF INTEREST. Chapter 171, Local
  Government Code, applies to a director.
  [Sections 175.108-175.150 reserved for expansion]
  SUBCHAPTER D. POWERS AND DUTIES OF AUTHORITY
         Sec. 175.151.  NATURE OF AUTHORITY. (a) An authority is a
  public body and a political subdivision of the state exercising
  public and essential governmental functions.
         (b)  An authority, in the exercise of powers under this
  chapter, is performing only governmental functions and is a
  governmental unit within the meaning of Chapter 101, Civil Practice
  and Remedies Code.
         Sec. 175.152.  GENERAL POWERS OF AUTHORITY. An authority
  has all the powers necessary or convenient to carry out the purposes
  of this chapter.
         Sec. 175.153.  SUNSET REVIEW. An authority is subject every
  12th year to review under Chapter 325, Government Code (Texas
  Sunset Act).
         Sec. 175.154.  SUITS. (a) An authority may:
               (1)  sue and be sued;
               (2)  institute and prosecute suits without giving
  security for costs; and
               (3)  appeal from a judgment without giving a
  supersedeas or cost bond.
         (b)  An action at law or in equity against an authority must
  be brought in the county in which a principal office of the
  authority is located, except that in an eminent domain proceeding
  involving an interest in land, suit must be brought in the county in
  which the land is located.
         Sec. 175.155.  POWERS RELATED TO DISTRICT PROPERTY. An
  authority may acquire by grant, purchase, gift, devise, lease, or
  otherwise and may hold, use, sell, lease, or dispose of real and
  personal property, licenses, patents, rights, and interests
  necessary, convenient, or useful for the full exercise of its
  powers.
         Sec. 175.156.  GENERAL AUTHORITY OVER HIGHER-SPEED RAIL
  FACILITIES. An authority may acquire, construct, develop, own,
  operate, maintain, and improve intermodal and higher-speed rail
  facilities to connect political subdivisions in the applicable
  border region.
         Sec. 175.157.  USE AND ALTERATION OF PROPERTY OF ANOTHER
  POLITICAL SUBDIVISION. (a) For a purpose described by Section
  175.156, as necessary or useful in the construction,
  reconstruction, repair, maintenance, operation, and improvement of
  the system, and with the consent of a municipality, county, or other
  political subdivision, an authority may:
               (1)  use streets, alleys, roads, highways, and other
  public ways of the municipality, county, or other political
  subdivision; and
               (2)  relocate, raise, reroute, change the grade of, or
  alter, at the authority's expense, the construction of any publicly
  owned or privately owned street, alley, highway, road, railroad,
  electric line or facility, telegraph or telephone property and
  facility, pipeline or facility, conduit or facility, and other
  property.
         (b)  An authority may not use or alter:
               (1)  a road or highway that is part of the state highway
  system without the permission of the commission; or
               (2)  a railroad without permission of the railroad.
         Sec. 175.158.  ACQUISITION OF PROPERTY. (a) An authority
  may purchase any interest in real property to acquire, construct,
  operate, or improve a higher-speed rail facility on terms and at a
  price to which the authority and the owner agree.
         (b)  The governing body of a municipality, a county, any
  other political subdivision, or a public agency may convey the
  title or the rights and easements to any property needed by an
  authority for its purposes in connection with the acquisition,
  construction, operation, or improvement of the system.
         Sec. 175.159.  EMINENT DOMAIN. (a) An authority may
  exercise the power of eminent domain to acquire:
               (1)  real property in fee simple; or
               (2)  an interest in real property less than fee simple
  in, on, under, or above land, including an easement, right-of-way,
  or right of use of airspace or subsurface space.
         (b)  The power of eminent domain under this section does not
  apply to:
               (1)  land under the jurisdiction of the department; or
               (2)  a rail line owned by a common carrier or
  municipality.
         (c)  To the extent possible, an authority shall use existing
  rail or intermodal transportation corridors for the alignment of
  its system.
         (d)  An eminent domain proceeding is begun by the board's
  adoption of a resolution declaring that the authority's acquisition
  of the property or interest described in the resolution:
               (1)  is a public necessity; and
               (2)  is necessary and proper for the construction,
  extension, improvement, or development of higher-speed rail
  facilities and is in the public interest.
         (e)  The resolution is conclusive evidence of the public
  necessity of the proposed acquisition and that the real property or
  interest in property is necessary for public use.
         (f)  With the consent of the property owner, instead of
  paying for real property with a single fixed payment, an authority
  may pay the owner in the form of:
               (1)  an intangible legal right to receive a percentage
  of identified fees related to the applicable segment of the system;
  or
               (2)  an exclusive or nonexclusive right to use or
  operate a part of the system.
         Sec. 175.160.  AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
  An authority may:
               (1)  make agreements with a public utility, private
  utility, communication system, common carrier, state agency, or
  transportation system for the joint use of facilities,
  installations, or properties inside or outside the border region;
  and
               (2)  establish through routes and joint fares.
         Sec. 175.161.  RULES. To protect the health, safety, and
  general welfare of residents of the border region and people who use
  the authority's services, an authority may adopt rules to govern
  the operation of the authority, its employees, the system, service
  provided by the authority, and any other necessary matter
  concerning its purposes, including rules relating to health,
  safety, alcohol or beverage service, food service, and telephone
  and utility services.
         Sec. 175.162.  JOINT OWNERSHIP AGREEMENTS. An authority may
  enter into a joint ownership agreement with any person.
         Sec. 175.163.  COMPENSATION FOR USE OF SYSTEM FACILITIES.
  (a) An authority shall establish and maintain reasonable and
  nondiscriminatory rates or other compensation for the use of the
  facilities of the system acquired, constructed, operated,
  regulated, or maintained by the authority.
         (b)  Together with grants received by the authority, the
  rates or other compensation must be sufficient to produce revenues
  adequate to:
               (1)  pay all expenses necessary for the operation and
  maintenance of the properties and facilities of the authority;
               (2)  pay the interest on and principal of bonds issued
  by the authority and payable in whole or in part from the revenues,
  as they become due and payable; and
               (3)  comply with the terms of an agreement made with the
  holders of bonds or with any person in their behalf.
         Sec. 175.164.  AGREEMENTS GENERALLY. An authority may make
  contracts, leases, and agreements with, and accept grants and loans
  from, the United States, this state, agencies and political
  subdivisions of this state or another state of the United States,
  the United Mexican States, or a state of the United Mexican States,
  and other persons and entities and may perform any act necessary for
  the full exercise of the powers vested in it.
         Sec. 175.165.  INTERLOCAL AGREEMENTS WITH COMMISSION. The
  commission may enter into an interlocal agreement with an authority
  under which the authority may exercise a power or duty of the
  commission for the development and efficient operation of an
  intermodal corridor in the applicable border region.
         Sec. 175.166.  ACQUISITION OF ROLLING STOCK AND OTHER
  PROPERTY. An authority may acquire rolling stock or other property
  under conditional sales contracts, leases, equipment trust
  certificates, or any other form of contract or trust agreement.
         Sec. 175.167.  LIMIT ON POWER. A revenue bond indenture may
  limit the exercise of the powers granted by this subchapter, and a
  limit applies as long as the revenue bonds issued under the
  indenture are outstanding and unpaid.
         Sec. 175.168.  RULES GOVERNING SYSTEM AND ROUTINGS. An
  authority by resolution may adopt rules governing the use,
  operation, and maintenance of the system and may determine all
  routings and change them as the board considers advisable.
         Sec. 175.169.  OPERATION OR USE CONTRACTS. (a) An authority
  may:
               (1)  lease all or part of the higher-speed rail
  facilities to an operator; or
               (2)  contract for the use or operation of all or part of
  the higher-speed rail facilities by an operator.
         (b)  To the maximum extent practicable, an authority shall
  encourage the participation of private enterprise in the operation
  of higher-speed rail facilities.
         (c)  The term of an operating contract under this section may
  not exceed 20 years.
         Sec. 175.170.  RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
  OTHER POLITICAL SUBDIVISIONS. An authority may contract with a
  county or other political subdivision of this state for the
  authority to provide higher-speed rail transportation services to
  an area outside the border region on the terms and conditions to
  which the parties agree.
  [Sections 175.171-175.200 reserved for expansion]
  SUBCHAPTER E. FINANCIAL PROVISIONS
         Sec. 175.201.  PURCHASE OF ADDITIONAL INSURED PROVISIONS.
  An authority may purchase an additional insured provision to any
  liability insurance contract.
         Sec. 175.202.  FISCAL YEAR. Unless the board changes the
  fiscal year, the fiscal year of an authority ends September 30.
         Sec. 175.203.  ANNUAL BUDGET. (a) Before beginning the
  operation of higher-speed rail facilities, the board shall adopt an
  annual operating budget specifying the authority's anticipated
  revenues and expenses for the remainder of the fiscal year. The
  board shall adopt an operating budget for each succeeding fiscal
  year.
         (b)  The board shall hold a public hearing before adopting a
  budget other than the initial budget. Notice of each hearing must
  be published at least seven days before the date of the hearing in a
  newspaper of general circulation in each county in the applicable
  border region.
         (c)  A budget may be amended at any time if notice of the
  proposed amendment is given in the notice of the meeting.
         (d)  An expenditure that is not budgeted may not be made.
         Sec. 175.204.  RETIREMENT BENEFITS. An authority is
  eligible to participate in the Texas County and District Retirement
  System.
         Sec. 175.205.  DEPOSITORY. (a) The board by resolution
  shall name one or more banks for the deposit of authority funds.
         (b)  Authority funds are public funds and may be invested in
  securities permitted by Chapter 2256, Government Code.
         (c)  To the extent funds of an authority are not insured by
  the Federal Deposit Insurance Corporation or its successor, they
  shall be collateralized in the manner provided for county funds.
         Sec. 175.206.  AGREEMENTS RELATED TO FOREIGN AND DOMESTIC
  CURRENCY. (a) To provide tax benefits to another party that are
  available with respect to property under the laws of a foreign
  country or to encourage private investment with a transportation
  authority in the United States, and notwithstanding any other
  provision of this chapter, an authority may enter into and execute,
  as it considers appropriate, contracts, agreements, notes,
  security agreements, conveyances, bills of sale, deeds, leases as
  lessee or lessor, and currency hedges, swap transactions, or
  agreements relating to foreign and domestic currency.
         (b)  The agreements or instruments may have the terms,
  maturities, duration, provisions as to governing law, indemnities,
  and other provisions that are approved by the board.
         (c)  In connection with any transaction authorized by this
  section, the authority shall deposit in trust, escrow, or similar
  arrangement cash or lawful investments or securities, or shall
  enter into one or more payment agreements, financial guarantees, or
  insurance contracts that, by their terms, including interest to be
  earned on any cash or securities, are sufficient in amount to pay
  when due all amounts required to be paid by the authority as rent
  over the full term of the transaction plus any optional purchase
  price due under the transaction. A counterparty to a payment
  agreement, financial guarantee, or insurance contract under this
  subsection must have either a corporate credit or debt rating in any
  form, a claims-paying ability, or a rating for financial strength
  of "AA" or better by Moody's Investors Service, Inc., or by Standard &
  Poor's Corporation or "A-" or better by BEST's rating system.
         (d)  A certification in advance by an independent financial
  expert, banker, or certified public accountant, who is not an
  employee of the authority, certifying compliance with this
  requirement constitutes conclusive evidence of compliance.
  Property sold, acquired, or otherwise transferred under this
  section is considered for all purposes to be property owned and held
  by the authority and used for public purposes.
  [Sections 175.207-175.300 reserved for expansion]
  SUBCHAPTER F. BONDS
         Sec. 175.301.  REVENUE BONDS. An authority may issue
  revenue bonds and notes in amounts the board considers necessary or
  appropriate for the acquisition, purchase, construction,
  reconstruction, repair, equipping, improvement, or extension of
  the authority's higher-speed rail facilities.
         Sec. 175.302.  SECURITY FOR PAYMENT OF BONDS. (a) To secure
  the payment of a bond or note, an authority may:
               (1)  encumber and pledge all or any part of the revenues
  of its higher-speed rail facilities;
               (2)  mortgage and encumber all or part of the property
  of the higher-speed rail facilities and any thing pertaining to
  them that is acquired or to be acquired; and
               (3)  prescribe the terms and provisions of the bond or
  note in any manner not inconsistent with this chapter.
         (b)  Unless prohibited by the resolution or indenture
  relating to outstanding bonds or notes, an authority may encumber
  separately any item of property.
         Sec. 175.303.  BONDS AND NOTES AS AUTHORIZED INVESTMENTS AND
  SECURITY FOR DEPOSITS OF PUBLIC FUNDS. (a) Bonds and notes are
  legal and authorized investments for:
               (1)  a bank;
               (2)  a trust company;
               (3)  a savings and loan association; and
               (4)  an insurance company.
         (b)  The bonds and notes are:
               (1)  eligible to secure the deposit of public funds of
  this state or a municipality, county, school district, or other
  political corporation or subdivision of this state; and
               (2)  lawful and sufficient security for the deposits to
  the extent of the principal amount or market value of the bonds and
  notes, whichever is less.
         Sec. 175.304.  AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
  (a) A contract in the amount of more than $15,000 for the
  construction of improvements or the purchase of material,
  machinery, equipment, supplies, or any other property other than
  real property may be let only through competitive bidding after
  notice is published, at least 15 days before the date set for
  receiving bids, in a newspaper of general circulation in each
  county in the applicable border region.
         (b)  The board may adopt rules governing the taking of bids
  and the awarding of contracts.
         (c)  This section does not apply to:
               (1)  personal or professional services;
               (2)  the acquisition of an existing rail transportation
  system; or
               (3)  a contract with a common carrier to construct
  lines or to operate higher-speed rail service on lines wholly or
  partly owned by the carrier.
  [Sections 175.305-175.350 reserved for expansion]
  SUBCHAPTER G. TAXES
         Sec. 175.351.  TAX EXEMPTION. Authority property, material
  purchases, revenues, and income and the interest on a bond or note
  issued by an authority are exempt from all taxes imposed by this
  state or a political subdivision of this state.
         Sec. 175.352.  SALES AND USE TAX IMPOSED. A sales and use
  tax is imposed on items sold on authority property.
         Sec. 175.353.  TAX RATE. The sales and use tax imposed under
  Section 175.352 shall be imposed at the rate of the highest
  combination of local sales and use taxes imposed at the time of the
  authority's creation in any local governmental jurisdiction in the
  applicable border region.
         Sec. 175.354.  ABOLITION OF OTHER TAXES. All other local
  sales and use taxes that would otherwise be imposed on authority
  property are abolished by the imposition of the tax under Section
  175.352.
         Sec. 175.355.  DUTY OF COMPTROLLER. The comptroller shall:
               (1)  administer, collect, and enforce the tax imposed
  under Section 175.352; and
               (2)  remit to the authority the local sales and use tax
  collected on the authority's property.
         Sec. 175.356.  APPLICABILITY OF TAX CODE. Chapter 321, Tax
  Code, governs the computation, administration, governance, and use
  of the tax except as inconsistent with this chapter.
         Sec. 175.357.  NOTICE TO COMPTROLLER. (a) An authority
  shall notify the comptroller in writing by registered or certified
  mail of the authority's creation and of its intent to impose the
  sales and use tax under Section 175.352.
         (b)  The authority shall provide to the comptroller all
  information required to implement the tax, including:
               (1)  an adequate map showing the property boundaries of
  the authority; and
               (2)  a certified copy of the resolution of the
  authority board adopting the tax.
         (c)  Not later than the 30th day after the date the
  comptroller receives the notice, map, and other information, the
  comptroller shall inform the authority of whether the comptroller
  is prepared to administer the tax.
         Sec. 175.358.  NOTICE TO LOCAL GOVERNMENTS. At the same time
  an authority notifies the comptroller under Section 175.357, the
  authority shall:
               (1)  notify each affected local governmental unit of
  the authority's creation; and
               (2)  provide each with an adequate map showing the
  property boundaries of the authority.
         Sec. 175.359.  ACQUISITION OF ADDITIONAL TERRITORY SUBJECT
  TO TAX. (a) Not later than the 30th day after the date an authority
  adds territory to the authority, the authority shall notify the
  comptroller and each affected local governmental unit of the
  addition.
         (b)  The authority must include with each notification:
               (1)  an adequate map showing the new boundaries of the
  authority; and
               (2)  the date the additional territory was added.
         (c)  Not later than the 30th day after the date the
  comptroller receives the notice under this section, the comptroller
  shall inform the authority of whether the comptroller is prepared