81(R) HB 300 - House Committee Report version

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	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
	to administer the tax imposed under Section 175.352 in the
	additional territory.
	Sec. 175.360. EFFECTIVE DATE OF TAX. A tax imposed under
	Section 175.352 or the abolition of a tax under Section 175.354
	takes effect on the first day of the first complete calendar quarter
	that occurs after the expiration of the first complete calendar
	quarter that occurs after the date the comptroller receives a
	notice of the action as required by this subchapter.
	ARTICLE 10. ELECTRONIC SIGNS
	SECTION 10.01. Chapter 544, Transportation Code, is amended
	by adding Section 544.013 to read as follows:
	Sec. 544.013. CHANGEABLE MESSAGE SIGN SYSTEM. (a) In this
	section, "changeable message sign" means a sign that conforms to
	the manual and specifications adopted under Section 544.001. The
	term includes a dynamic message sign.
	(b) The Texas Department of Transportation shall actively
	manage a system of changeable message signs located on highways
	under the jurisdiction of that department to mitigate traffic
	congestion by providing current information to the traveling
	public, including information about:
	(1) traffic incidents;
	(2) weather conditions, including severe weather
	advisories;
	(3) an abducted child for whom the statewide alert
	system authorized by Subchapter L, Chapter 411, Government Code,
	has been activated;
	(4) a missing senior citizen for whom a statewide
	silver alert authorized by Subchapter M, Chapter 411, Government
	Code, has been activated;
	(5) the availability of gas, food, lodging, or
	pharmacy services or other relevant information during an
	evacuation or after an order declaring a state of disaster under
	Chapter 418, Government Code;
	(6) road construction; and
	(7) alternative routes.
	(c) Not later than June 1, 2010, the department shall
	explore implementing a system of changeable message signs along
	designated evacuation routes. This subsection expires September 1,
	2011.
	ARTICLE 11. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY
	SECTION 11.01. Section 1(3), Article 4413(37), Revised
	Statutes, is amended to read as follows:
	(3) "Office" [~~"Department"~~] means the office of the
	governor [~~Texas Department of Transportation~~].
	SECTION 11.02. Section 2, Article 4413(37), Revised
	Statutes, is amended to read as follows:
	Sec. 2. ESTABLISHMENT OF AUTHORITY. The Automobile Burglary
	and Theft Prevention Authority is established in the office of the
	governor [~~Texas Department of Transportation~~]. The authority is
	not an advisory body to the governor [~~Texas Department of~~
	~~Transportation~~].
	SECTION 11.03. Sections 3(h) and (l), Article 4413(37),
	Revised Statutes, are amended to read as follows:
	(h) If a person [~~the director~~] has knowledge that a
	potential ground for removal exists, the person [~~director~~] shall
	notify the presiding officer of the authority 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 person [~~director~~] shall notify the next highest officer of the
	authority, who shall notify the governor and the attorney general
	that a potential ground for removal exists.
	(l) The governor's [~~director or the director's~~] designee
	shall provide to members of the authority, as often as necessary,
	information regarding their qualifications for office under this
	article and their responsibilities under applicable laws relating
	to standards of conduct for state officers.
	SECTION 11.04. Section 5(d), Article 4413(37), Revised
	Statutes, is amended to read as follows:
	(d) The training program required by Subsection (c) must
	provide information to the person regarding:
	(1) the enabling legislation that created the
	authority and its policymaking body to which the member is
	appointed to serve;
	(2) the programs operated by the authority;
	(3) the role and functions of the authority;
	(4) the rules of the authority [~~and the department~~];
	(5) the current budget for the authority;
	(6) the results of the most recent formal audit of the
	authority;
	(7) the requirements of the:
	(A) open meetings law, Chapter 551, Government
	Code;
	(B) open records law, Chapter 552, Government
	Code; and
	(C) administrative procedure law, Chapter 2001,
	Government Code;
	(8) the requirements of the conflict-of-interest laws
	and other laws relating to public officials; and
	(9) any applicable ethics policies adopted by the
	office [~~department~~] or the Texas Ethics Commission.
	SECTION 11.05. Sections 6(c), (d), (e), (f), and (g),
	Article 4413(37), Revised Statutes, are amended to read as follows:
	(c) The authority may use only staff of the office
	[~~department~~] and may delegate authority to the staff as needed.
	(d) Not later than April 1 of each year, the authority shall
	report on its activities to the governor, the lieutenant governor,
	and the speaker of the house of representatives.
	(e) The authority may be provided various services only by
	or through the office [~~department~~] as needed to carry out its
	purposes, powers, and duties. These services may include, but are
	not limited to, legal services not provided by the attorney
	general, fiscal services, administrative services, and personnel
	services. Except as provided by this section, the authority may
	enter into contracts in its own name and on its own behalf with
	recipients of grants for purposes of this article.
	(f) The office [~~department~~] shall provide personnel and
	services to the authority as agreed by the authority and the office
	[~~department~~].
	(g) The authority shall, in coordination with the office
	[~~department~~], develop and implement policies that clearly separate
	the policymaking responsibilities of the authority and the
	management responsibilities of the office [~~department~~].
	SECTION 11.06. Section 8(a), Article 4413(37), Revised
	Statutes, as amended by Chapters 308 (H.B. 1887) and 927 (H.B.
	3225), Acts of the 80th Legislature, Regular Session, 2007, is
	reenacted and amended to read as follows:
	(a) Money appropriated to the office [~~department~~] for
	authority purposes shall be used by the authority to pay the office
	[~~department~~] for administrative costs and to achieve the purposes
	of this article, including:
	(1) establishing and funding the motor vehicle
	registration program required by Section 9 of this article;
	(2) providing financial support to law enforcement
	agencies for economic motor vehicle theft enforcement teams;
	(3) providing financial support to law enforcement
	agencies, local prosecutors, judicial agencies, and neighborhood,
	community, business, and nonprofit organizations for programs
	designed to reduce the incidence of economic motor vehicle theft;
	(4) conducting educational programs designed to
	inform motor vehicle owners of methods of preventing motor vehicle
	burglary or theft;
	(5) providing equipment, for experimental purposes,
	to assist motor vehicle owners in preventing motor vehicle burglary
	or theft; and
	(6) establishing a uniform program to prevent stolen
	motor vehicles from entering Mexico.
	SECTION 11.07. Section 8(c), Article 4413(37), Revised
	Statutes, is amended to read as follows:
	(c) The cost of personnel and services provided to the
	authority by the office [~~department~~] and by the attorney general
	may be paid only from appropriations made for authority purposes.
	Appropriations made for authority purposes may not be used for any
	other purpose.
	SECTION 11.08. Section 9(e), Article 4413(37), Revised
	Statutes, is amended to read as follows:
	(e) The Department of Public Safety [~~department~~] shall
	issue to the owner of a motor vehicle registered under this section
	a decal or other appropriate identifying marker to be affixed to the
	motor vehicle to indicate that the motor vehicle is registered with
	the program.
	SECTION 11.09. Section 1(4), Article 4413(37), Revised
	Statutes, is repealed.
	SECTION 11.10. (a) In connection with the establishment by
	this Act of the Automobile Burglary and Theft Prevention Authority
	in the office of the governor and with the transfer by this Act of
	the duty to provide personnel and services to the Automobile
	Burglary and Theft Prevention Authority from the Texas Department
	of Transportation to the office of the governor, the personnel,
	furniture, computers, other property and equipment, files, and
	related materials used by the Automobile Burglary and Theft
	Prevention Authority are transferred to the office of the governor.
	(b) The unobligated and unexpended balance of any
	appropriations made to the Texas Department of Transportation in
	connection with or relating to the Automobile Burglary and Theft
	Prevention Authority for the state fiscal biennium ending August
	31, 2009, is transferred and reappropriated to the office of the
	governor for the purpose of allowing the authority to continue to
	exercise its powers, duties, and obligations under the auspices of
	that office.
	ARTICLE 12. STATE FINANCING OF PUBLIC TRANSPORTATION
	SECTION 12.01. Subchapter A, Chapter 456, Transportation
	Code, is amended by adding Section 456.009 to read as follows:
	Sec. 456.009. ALLOCATION OF FUNDS. (a) The commission
	shall adopt rules to allocate funds to designated recipients under
	this chapter.
	(b) Subject to Subsection (c), of the total amount of money
	allocated under this chapter, the commission may not distribute:
	(1) less than 90 percent of the total amount allocated
	under the formula program provided by Subchapter B; and
	(2) more than 10 percent of the total amount allocated
	under the discretionary program provided by Subchapter C.
	(c) The rules established by the commission under this
	section must include a provision ensuring that no recipient of
	state funding under Subchapter B or C receives an amount of funding
	allocated under those subchapters that is less than the total
	amount of state funding received under those subchapters in the
	state fiscal year beginning September 1, 2004.
	ARTICLE 13. MEMORANDA OF UNDERSTANDING
	SECTION 13.01. (a) The board of the Texas Department of
	Motor Vehicles and the Texas Transportation Commission by rule
	shall adopt or revise a joint memorandum of understanding to
	coordinate the Texas Department of Motor Vehicles' and the Texas
	Department of Transportation's information systems to allow for the
	sharing of information so that each department may effectively and
	efficiently perform the functions and duties assigned to it.
	(b) The Texas Department of Motor Vehicles and the Texas
	Department of Transportation shall implement the joint memorandum
	of understanding using existing personnel and resources.
	(c) Otherwise confidential information shared under the
	memorandum of understanding remains subject to the same
	confidentiality requirements and legal restrictions on access to
	the information that are imposed by law on the department that
	originally obtained or collected the information.
	(d) Information may be shared under the memorandum of
	understanding without the consent of the person who is the subject
	of the information.
	SECTION 13.02. In addition to the memorandum of
	understanding required by Section 13.01 of this article, the board
	of the Texas Department of Motor Vehicles and the Texas
	Transportation Commission by rule may adopt or revise one or more
	other joint memoranda of understanding as considered necessary or
	appropriate to effectuate the transfer of the powers and duties of
	the Texas Department of Transportation to the Texas Department of
	Motor Vehicles under this Act.
	ARTICLE 14. EFFECTIVE DATE
	SECTION 14.01. This Act takes effect September 1, 2009.