By: Isett, Pickett, Harper-Brown H.B. No. 300
        (Senate Sponsor - Hegar)
         (In the Senate - Received from the House May 12, 2009;
  May 12, 2009, read first time and referred to Committee on
  Transportation and Homeland Security; May 23, 2009, reported
  adversely, with favorable Committee Substitute by the following
  vote:  Yeas 9, Nays 0; May 23, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 300 By:  Carona
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the continuation and functions of the Texas Department
  of Transportation, including the transfer of certain functions to
  the Texas Department of Motor Vehicles and the Texas Department of
  Licensing and Regulation; 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), (f), (g), and (j),
  Transportation Code, are amended to read as follows:
         (a)  The Texas Transportation Commission consists of five
  members appointed by the governor with the advice and consent of the
  senate. If the governor does not appoint the commissioners before
  February 28 of an odd-numbered year, the lieutenant governor shall
  appoint the commissioners. A commissioner appointed by the
  lieutenant governor is not subject to confirmation by the senate.
         (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.
         (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 201.052, Transportation Code, is
  amended to read as follows:
         Sec. 201.052.  TERMS.  Members of the commission serve
  two-year [staggered six-year] terms[, with the terms of either one
  or two members] expiring February 1 of each odd-numbered year.
         SECTION 1.03.  Section 201.054, Transportation Code, is
  amended to read as follows:
         Sec. 201.054.  COMMISSION MEETINGS. (a) The commission
  shall hold regular meetings at least once a month and special
  meetings at the call of the chair. Commissioners shall attend the
  meetings of the commission. The chair shall oversee the
  preparation of an agenda for each meeting and ensure that a copy is
  provided to each commissioner at least seven days before the
  meeting.
         (b)  The commission shall make a sound and video recording of
  each regular and called meeting of the commission and of any
  workshop conducted by the commission. Not later than 24 hours after
  a meeting or workshop of the commission is adjourned, the
  department shall post the sound and video recording of the meeting
  or workshop on the department's Internet website.
         SECTION 1.04.  Subchapter B, Chapter 201, Transportation
  Code, is amended by adding Section 201.060 to read as follows:
         Sec. 201.060.  ASSISTANTS TO COMMISSIONERS. An assistant to
  a commissioner is required to report only to that commissioner. An
  assistant to a commissioner may not be required to report to the
  director.
         SECTION 1.05.  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 1.06.  Subchapter C, Chapter 201, Transportation
  Code, is amended by adding Section 201.119 to read as follows:
         Sec. 201.119.  ADVISORY COMMITTEES. (a)  The commission may
  establish, as it considers necessary, advisory committees on any of
  the matters under its jurisdiction.
         (b)  The commission shall determine the purpose, duties, and
  membership of each advisory committee.
         SECTION 1.07.  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 [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 1.08.  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 1.09.  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, the director and the department's
  chief financial officer shall each certify in writing that 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 the
  department's internal 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 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 Section 201.625.
         (c)  The Transportation Legislative Oversight Committee
  shall recommend to the 82nd Legislature appropriate penalties for
  failure to submit the certifications required by Subsection (a).
         Sec. 201.211.  LEGISLATIVE LOBBYING. (a) In addition to
  Section 556.006, Government Code, a member of the commission, the
  director, or a department employee may not use money under the
  department's control or state resources to engage in an activity to
  influence the passage or defeat of legislation, except as provided
  by Subsection (c).
         (b)  Violation of Subsection (a) is grounds for dismissal of
  an employee who directs or carries out the violation.
         (c)  This section does not prohibit a member of the
  commission, the director, or a department employee from using state
  resources to:
               (1)  provide public information or information
  responsive to a request;
               (2)  communicate with officers and employees of the
  federal government in pursuit of federal appropriations; or
               (3)  influence the passage or defeat of federal
  legislation or regulation.
         Sec. 201.212.  ETHICS AFFIRMATION AND HOTLINE. (a) Each
  department employee shall annually affirm the employee's
  commitment to adhere to the ethics policy adopted under Section
  572.051(c), Government Code.
         (b)  The department shall establish and operate a dedicated
  telephone line that enables a person to call the number,
  anonymously or not anonymously, to report alleged fraud, waste, or
  abuse or an alleged violation of the ethics policy adopted under
  Section 572.051(c), Government Code.
         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 1.10.  (a) Subchapter D, Chapter 201,
  Transportation Code, is amended by adding Section 201.214 to read
  as follows:
         Sec. 201.214.  ENVIRONMENTAL CERTIFICATION. (a) So as to
  improve environmental accountability in the department, the
  department shall establish a certification process for
  environmental specialists. A person who successfully completes the
  certification process may:
               (1)  perform analyses and reviews of environmental
  reports and documents; and
               (2)  approve environmental reports and documents.
         (b)  The certification process must establish minimum levels
  of training, including continuing education. A person certified by
  the department must successfully complete continuing education on a
  regular basis and be recertified each year.
         (b)  Not later than March 31, 2010, the Texas Department of
  Transportation shall establish the certification process under
  Section 201.214, Transportation Code, as added by Subsection (a) of
  this section.
         (c)  Not later than September 30, 2010, each employee of the
  Texas Department of Transportation whose job includes working on
  the development of environmental reports and documents must have
  successfully completed the certification process under Section
  201.214, Transportation Code, as added by Subsection (a) of this
  section.
         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 director or the
  person designated by the 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
  director and the legislature.
         SECTION 1.13.  Section 201.703, Transportation Code, is
  amended to read as follows:
         Sec. 201.703.  EXPENDITURES AND CONTRACTS FOR
  TRANSPORTATION PROJECT OR PROGRAM [ROADS] NOT ON [THE] HIGHWAY
  SYSTEM. (a) The department in conjunction with the Federal Highway
  Administration may spend for a transportation program or for the
  improvement of a transportation project [road] not on [in] the
  state highway system money appropriated by the United States
  Congress, [and] allocated by the United States secretary of
  transportation to the department, and eligible under federal law
  for expenditure on the project or program [road]. That federal
  money may be matched or supplemented by an amount of state money
  necessary for proper construction and performance of the work.
         (b)  State money may not be used exclusively for the
  construction of a road not on [in] the state highway system.
         (c)  The expenditure of state money is limited to the cost of
  construction and engineering, overhead, and other costs on which
  the application of federal money is prohibited or impractical and
  to the cost of providing federally required oversight.
         (d)  The department may:
               (1)  contract for work involving a road that is not on
  the state highway system under this section in accordance with the
  law that would apply to the department if the work were on the state
  highway system; or
               (2)  authorize a local government to contract for the
  work in accordance with commission rule or with the law that would
  apply to the local government for a comparable project.
         SECTION 1.14.  Section 202.021, Transportation Code, is
  amended by amending Subsection (e) and adding Subsection (e-1) to
  read as follows:
         (e)  The commission may waive payment for real property
  transferred to a governmental entity under this section if:
               (1)  the estimated cost of future maintenance on the
  property equals or exceeds the fair value of the property; or
               (2)  the property is a highway right-of-way and the
  governmental entity assumes or has assumed jurisdiction, control,
  and maintenance of the right-of-way for public road purposes.
         (e-1)  If property described by Subsection (e)(2) ceases to
  be used for public road purposes, the real property rights
  transferred under this section terminate and automatically revert
  to and vest in this state.
         SECTION 1.15.  Section 203.031, Transportation Code, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  In the exercise of its authority to manage access to
  or from a controlled access highway under Subsection (a)(2) or (4),
  the commission by rule shall:
               (1)  require that a decision by a department district
  office denying a request for access to a specific location on a
  controlled access highway be in writing and include the reasons for
  the denial;
               (2)  provide procedures for appealing a denial under
  Subdivision (1), including procedures that:
                     (A)  allow the applicant to appeal the denial to
  the department's design division before the 31st day after the date
  written notice of the denial is given to the applicant;
                     (B)  provide that if an appeal under Paragraph (A)
  is not decided before the 91st day after the date the appeal was
  filed, the access applied for must be granted; and
                     (C)  allow the applicant to appeal the decision of
  the design division to the director and, if the decision is
  affirmed, to a board of variance appointed by the director and
  composed of at least three persons who may not be below the level of
  department division director, office director, or district
  engineer and who were not involved in the original decision to deny
  access;
               (3)  provide that properly platted access points to or
  from a controlled access highway that are located on undeveloped
  property are subject to the access management standards in effect
  at the time the points were platted regardless of when the initial
  request for access was submitted to the department, but only if:
                     (A)  development of the property begins and the
  request for access at the platted locations is submitted to the
  department before the fifth anniversary of the date the plat was
  recorded; and
                     (B)  the design of the highway facility in the
  vicinity of the platted access points did not materially change
  after the date the plat was recorded so as to significantly impact
  traffic patterns to the extent that the platted access points
  present a threat to public safety;
               (4)  require that:
                     (A)  owners of land adjacent to a proposed highway
  construction project be provided written notice of the project at
  least 60 days before the date construction begins if the project
  will permanently alter permitted access to or from a controlled
  access highway at the owners' existing locations; and
                     (B)  the access described by Paragraph (A) be
  reinstated to the most practicable extent possible after due
  consideration of the impact on highway safety, mobility, and
  efficient operation of any changed traffic patterns resulting from
  the construction;
               (5)  adopt criteria for determining when a variance to
  access management standards may be granted, including criteria
  that, in addition to highway safety, mobility, and efficient
  operation concerns, takes into consideration any of the following
  consequences resulting from denial of the owner's request for
  access to a specific location on a controlled access highway that
  may impact a property owner:
                     (A)  denial of reasonable access to the property;
  and
                     (B)  undue hardship on a business located on the
  property; and
               (6)  clarify that the remodeling or demolition and
  rebuilding of a business does not cause new access management
  standards to apply unless the department makes an affirmative
  finding in writing that the remodeled or rebuilt business will
  significantly impact traffic patterns to the extent that the
  current access location presents a threat to public safety.
         SECTION 1.16.  Subchapter C, Chapter 202, Transportation
  Code, is amended by adding Section 202.061 to read as follows:
         Sec. 202.061.  ENVIRONMENTAL COVENANT. (a) The commission
  may enter into an environmental covenant for the purpose of
  subjecting real property in which the department has an ownership
  interest to a plan or the performance of work for environmental
  remediation if the plan or work performed is first approved by the
  Texas Commission on Environmental Quality or a federal agency with
  the authority to approve the plan or work under the applicable laws
  and regulations.
         (b)  The environmental covenant must:
               (1)  contain a legally sufficient description of the
  property subject to the covenant;
               (2)  describe the nature of the contamination on or
  under the property, including the contaminants, the source, if
  known, and the location and extent of the contamination; and
               (3)  describe the activity and use limitations on the
  property.
         (c)  The plan or performance of work for environmental
  remediation must:
               (1)  meet applicable state and federal standards for
  environmental remediation; and
               (2)  bring the property into compliance with zoning or
  land use controls imposed on the property by each applicable local
  government.
         (d)  For each property for which the commission may enter
  into an environmental covenant, the commission by order may
  authorize the executive director to execute an environmental
  covenant on behalf of the commission. Not less than 30 days before
  the date the commission considers a proposed order under this
  subsection, the commission must mail to each owner of a property
  interest in the applicable property, each adjacent landowner, and
  each applicable local government a notice that includes a clear and
  concise description of the proposal to enter into the environmental
  covenant and a statement of the manner in which written comments may
  be submitted to the commission.
         SECTION 1.17.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Section 201.625 to read as follows:
         Sec. 201.625.  TRANSPORTATION LEGISLATIVE OVERSIGHT
  COMMITTEE. (a) In this section, "committee" means the
  Transportation Legislative Oversight Committee.
         (b)  The committee is composed of the following members:
               (1)  the chair and all members of the Senate Committee
  on Transportation and Homeland Security;
               (2)  the chair and all members of the House Committee on
  Transportation;
               (3)  the chair of the Senate Committee on Finance; and
               (4)  the chair of the House Committee on
  Appropriations.
         (c)  The chair of the Senate Committee on Transportation and
  Homeland Security and the chair of the House Committee on
  Transportation serve as the presiding officer of the committee on
  an alternating basis, with the chair of the Senate Committee on
  Transportation and Homeland Security serving as the first chair of
  the committee. The presiding officer of the committee serves a
  two-year term that expires February 1 of each odd-numbered year.
         (d)  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.
         (e)  The committee shall meet at least quarterly and at the
  call of the presiding officer.
         (f)  The committee shall monitor the following:
               (1)  implementation of the changes in law made as a
  result of the sunset review process;
               (2)  the progress made in transference of powers,
  duties, and property from the Texas Department of Transportation to
  the Texas Department of Motor Vehicles;
               (3)  any proposed changes in the organization or
  structure of the department;
               (4)  significant transportation policy initiatives at
  both the state and federal levels;
               (5)  major projects of the department;
               (6)  the financial issues facing the department,
  including the amounts and usage of dedicated and non-dedicated
  state highway funds, the impacts of various bond programs, the
  short-term and long-term cash forecast of the department, possible
  revenue sources for the rail relocation and improvement fund, and
  additional revenue sources for the Texas Mobility Fund; and
               (7)  reports on any subject requested by the committee
  or determined by the department to be beneficial to the committee.
         (g)  The committee shall require the department to provide
  reports to the committee as necessary to effectively perform the
  committee's duties under Subsection (f).
         (h)  When the department files a quarterly financial
  statement required by Section 201.107(a) with the governor, the
  department shall provide a copy of that statement to the committee.
         (i)  Notwithstanding any other provision of this chapter,
  the committee may not recommend specific projects or recommend
  funding for specific projects at the department.
         (j)  The department shall enter into an interagency
  agreement with the legislature, a chamber of the legislature, or a
  legislative agency to provide funding to support the operation of
  the committee from available amounts appropriated to the
  department. The amount provided by the department for a state
  fiscal biennium may not exceed $1 million.
         (k)  This section expires August 31, 2013.
         SECTION 1.18.  Subchapter B, Chapter 223, Transportation
  Code, is amended by adding Section 223.0411 to read as follows:
         Sec. 223.0411.  REPORT. (a) Not later than December 31,
  2009, the comptroller shall submit a report to the governor, the
  Transportation Legislative Oversight Committee, and the
  Legislative Budget Board as provided by this section. In
  developing the report, the comptroller shall collaborate with:
               (1)  the department;
               (2)  the Texas Board of Professional Engineers;
               (3)  the Association of General Contractors; and
               (4)  the Consultant Engineer Council.
         (b)  The report must include:
               (1)  the number of licensed professional engineers and
  graduate engineers employed by the department in each of the
  previous five state fiscal years aggregated by work function and by
  strategy;
               (2)  the dollar amount of highway and bridge projects
  awarded by the department in each of the previous five state fiscal
  years;
               (3)  the cost, including all direct and indirect costs,
  aggregated by type of project per $100 million, of highway and
  bridge projects awarded by the department in each of the previous
  five state fiscal years, including the percentage of those projects
  for which activities were conducted by:
                     (A)  department personnel;
                     (B)  private sector personnel; and
                     (C)  both department personnel and private sector
  personnel;
               (4)  an analysis of the dollar volume impact to the
  department's highway and bridge construction and maintenance
  program per $100 million of projects awarded for each one percent
  increase in production by private sector personnel offset by a
  reduction in the activities of department personnel, considering
  the cost to perform activities described by Subdivision (3);
               (5)  a recommended plan for staffing and usage of
  department and private sector personnel in the planning of
  department highway and bridge projects for the next 10-year period
  based on projected funding for the department;
               (6)  an attrition plan to achieve the department
  staffing levels recommended in the plan under Subdivision (5)
  before January 1, 2013, if those recommended levels are lower than
  the corresponding staffing levels on September 1, 2009; and
               (7)  a detailed description as to how the results of the
  report will be incorporated in the department's ongoing
  restructuring efforts.
         (c)  The cost analysis required by Subsection (b)(3) shall be
  conducted by an independent contract cost accounting firm that is
  knowledgeable of governmental and private sector accounting
  practices.
         (d)  The department may not hire a new employee to fill a
  vacancy in a position 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) until:
               (1)  the comptroller submits the report required by
  this section; and
               (2)  the Legislative Budget Board approves the
  recommendations contained in the report.
         (e)  This section expires September 1, 2011.
         SECTION 1.19.  Subchapter F, Chapter 224, Transportation
  Code, is amended by adding Section 224.1544 to read as follows:
         Sec. 224.1544.  VEHICLE SIZE AND WEIGHT LIMITS.  (a)  The
  commission may authorize the operation of a vehicle or combination
  that exceeds a height, length, or gross weight limitation in
  Subchapter C, Chapter 621, on a lane of a highway that is designated
  as an exclusive lane under Section 224.1541 if supported by an
  engineering and traffic study that includes an analysis of the
  structural capacity of bridges and pavements, current and projected
  traffic patterns and volume, and potential effects on public
  safety.
         (b)  This section does not authorize the operation of a
  vehicle with an axle weight that is greater than that authorized by
  Chapter 621, 622, or 623.
         SECTION 1.20.  Section 228.001, Transportation Code, is
  amended by adding Subdivisions (2-a) and (7) to read as follows:
               (2-a)  "Operate" and "operation" include the
  processing and collecting of tolls and the providing of related
  customer services.
               (7)  "Registered owner" means:
                     (A)  an owner as defined by Section 502.001; or
                     (B)  the owner of a vehicle as shown on the vehicle
  registration records of the department or the analogous department
  or agency of another state or country.
         SECTION 1.21.  (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 pending or operating [promote the
  development and use of] toll projects, including information
  concerning the methods of paying and collecting tolls, 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, 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 1.22.  Subsection (a), Section 228.054,
  Transportation Code, is amended to read as follows:
         (a)  Except as provided by Subsection (e) or Section
  228.0545, the operator of a vehicle, other than an authorized
  emergency vehicle, as defined by Section 541.201, that is driven or
  towed through a toll collection facility shall pay the proper toll.
  The exemption from payment of a toll for an authorized emergency
  vehicle applies regardless of whether the vehicle is:
               (1)  responding to an emergency;
               (2)  displaying a flashing light; or
               (3)  marked as an emergency vehicle.
         SECTION 1.23.  Subchapter B, Chapter 228, Transportation
  Code, is amended by adding Section 228.0545 to read as follows:
         Sec. 228.0545.  ALTERNATIVE TOLLING METHODS. (a) As an
  alternative to requiring payment of a toll at the time a vehicle is
  driven or towed through a toll collection facility, the department
  may use video billing or other tolling methods to permit the
  registered owner of the vehicle to pay the toll on a later date.
         (b)  The department may use automated enforcement technology
  authorized by Section 228.058 to identify the registered owner of
  the vehicle for purposes of billing, collection, and enforcement
  activities.
         (c)  The department shall send by first class mail to the
  registered owner of the vehicle a written notice of the total amount
  due. The notice must specify the date, which may not be earlier
  than the 15th day after the date the notice is mailed, by which the
  amount due must be paid. The registered owner shall pay the amount
  due on or before the date specified in the notice.
         (d)  The department shall send the notice required by
  Subsection (c) and subsequent notices to:
               (1)  the registered owner's address as shown in the
  vehicle registration records of the department; or
               (2)  an alternate address provided by the owner or
  derived through other reliable means.
         (e)  On or before October 1 of each year, the department
  shall conduct a cost analysis to determine a policy on whether to
  mail a notice under Subsection (c) after each time a vehicle is
  driven or towed through a toll collection facility or only after a
  certain number of times a vehicle is driven or towed through a
  facility. The policy must ensure that the cost to the department of
  collecting tolls as provided by this section does not exceed the
  amount of the tolls and fees collected.
         SECTION 1.24.  Section 228.055, Transportation Code, is
  amended by amending Subsections (a), (b), (d), (e), (h), and (i),
  and adding Subsection (d-1) to read as follows:
         (a)  In the event of nonpayment of the [proper] toll as
  required by Section 228.054 or 228.0545, on issuance of a written
  notice of nonpayment, the registered owner of the nonpaying vehicle
  is liable for the payment of both the proper toll and an
  administrative fee.
         (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 department or an alternate address provided by the
  owner or derived through other reliable means. The notice of
  nonpayment shall be sent 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 fee for each event of nonpayment under Section
  228.054 or 228.0545.
         (d)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the department:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Section 228.054 or the date the vehicle was driven or towed through
  a toll collection facility that results in a notice issued under
  Section 228.0545, with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, in a format agreed on by the
  department and the lessor, other than a photocopy or scan of a
  rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Section 228.054 or the date the
  vehicle was driven or towed through a toll collection facility that
  results in a notice issued under Section 228.0545.
         (d-1)  If the lessor provides the required information
  within the period prescribed under Subsection (d), the department
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (d) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee 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 fee within the time specified by the
  notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative fee for each event of nonpayment.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         (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 228.054 occurred or before the date the vehicle was
  driven or towed through a toll collection facility that results in a
  notice issued under Section 228.0545, submitted written notice of
  the transfer to the department in accordance with Section 520.023,
  and, before the 30th day after the date the notice of nonpayment is
  mailed, provides to the department 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 department 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 department may send all subsequent notices of
  nonpayment associated with the vehicle to the person to whom
  ownership of the vehicle was transferred at the address provided by
  the former owner or an alternate address provided by the subsequent
  owner or derived through other reliable means. 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 fee within the time
  specified by the notice of nonpayment commits an offense. The
  subsequent owner shall pay a separate toll and administrative fee
  for each event of nonpayment under Section 228.054 or 228.0545.
  Each failure to pay a toll or administrative fee 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
  department or the analogous department or agency of another state
  or country.
         [(i)]  The department may contract, in accordance with
  Section 2107.003, Government Code, with a person to collect the
  unpaid toll and administrative fee before referring the matter to a
  court with jurisdiction over the offense.
         SECTION 1.25.  Subsections (b) and (c), Section 228.056,
  Transportation Code, are amended to read as follows:
         (b)  In the prosecution of an offense under Section
  228.055(c), (d-1) [(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 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 or on the date the vehicle was driven or towed
  through a toll collection facility that results in a notice issued
  under Section 228.0545; and
               (3)  a copy of the rental, lease, or other contract
  document, or the electronic data provided to the department under
  Section 228.055(d), covering the vehicle on the date of the
  underlying event of nonpayment under Section 228.054 or on the date
  the vehicle was driven or towed through a toll collection facility
  that results in a notice issued under Section 228.0545 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 or when the vehicle was driven or towed
  through a toll collection facility that results in a notice issued
  under Section 228.0545.
         (c)  It is a defense to prosecution under Section 228.055(c),
  (d-1) [(d)], or (e) that the motor vehicle in question was stolen
  before the failure to pay the proper toll occurred and had not been
  recovered before the failure to pay occurred, but only if the theft
  was reported to the appropriate law enforcement authority before
  the earlier of:
               (1)  the occurrence of the failure to pay; or
               (2)  eight hours after the discovery of the theft.
         SECTION 1.26.  Section 228.057, Transportation Code, is
  amended by adding Subsections (g) and (h) to read as follows:
         (g)  The department may, following closure of an electronic
  toll collection customer account and at the request of the account
  holder, refund the balance of funds in the account after making a
  deduction for any outstanding tolls and fees.
         (h)  The department may enter into an agreement with a
  governmental or private entity regarding the use of a transponder
  issued by the department and the corresponding electronic toll
  collection customer account to pay for parking services offered by
  the entity.
         SECTION 1.27.  Subsection (b), Section 228.058,
  Transportation Code, is amended to read as follows:
         (b)  Automated enforcement technology approved by the
  department under Subsection (a) may be used only for the purpose of
  producing, depicting, photographing, or recording an image that
  depicts that portion of a vehicle necessary to establish the
  classification of vehicle and the proper toll to be charged, the
  license plate number, and the state or country of registration,
  including an image:
               (1)  of a license plate attached to the front or rear of
  a vehicle; and
               (2)  showing the vehicle dimensions, the presence of a
  trailer, and the number of axles.
         SECTION 1.28.  (a) Section 228.201, Transportation Code, is
  amended by amending Subsection (a) and adding Subsection (a-1) 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].
         (a-1)  Subsection (a) does not apply to a port of entry, as
  defined by Section 621.001.
         (b)  Sections 228.202, 228.203, 228.207, and 228.208,
  Transportation Code, are repealed.
         (c)  The change in law made by this Act to Section
  228.201(a)(5), Transportation Code, does not apply to:
               (1)  the State Highway 130, Segments 5 and 6, project in
  Travis, Caldwell, and Guadalupe Counties;
               (2)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of FM
  2499 to south of State Highway 360);
               (3)  the North Tarrant Express project in Tarrant and
  Dallas Counties (IH 820 and State Highway 121/State Highway 183
  from IH 35W to State Highway 161, IH 820 east from State Highway
  121/State Highway 183 to Randol Mill Road, and IH 35W from IH 30 to
  State Highway 170);
               (4)  the IH 635 managed lanes project in Dallas County
  (IH 635 from east of Luna Road to Greenville Avenue and IH 35E from
  south of the Loop 12/IH 35E split to south of Valwood Parkway); or
               (5)  the U.S. Highway 290 project from east of U.S.
  Highway 183 to east of Farm-to-Market Road 734 in Travis County.
         (d)  A project described by Subsection (c) of this section is
  governed by Subchapter E, Chapter 228, Transportation Code, as that
  subchapter existed immediately before the effective date of this
  Act, and that subchapter is continued in effect for that purpose.
         SECTION 1.29.  Section 284.0701, Transportation Code, is
  amended by amending Subsection (d) and adding Subsection (d-1) to
  read as follows:
         (d)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Section 284.070, with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Section 284.070.
         (d-1)  If the lessor provides the required information
  within the period prescribed under Subsection (d), the authority
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (d) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee 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 lessee shall pay a
  separate toll and administrative cost for each event of nonpayment.
  Each failure to pay a toll or administrative cost under this
  subsection is a separate offense.
         SECTION 1.30.  Sections 284.0702(b) and (c), Transportation
  Code, are amended to read as follows:
         (b)  In the prosecution of an offense under Section
  284.0701(c), (d-1) [(d)], or (e):
               (1)[,]  a computer record of the 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
  284.070 occurred; and
               (2)  a copy of the rental, lease, or other contract
  document, or the electronic data provided to the authority under
  Section 284.0701(d), covering the vehicle on the date of the
  underlying event of nonpayment under Section 284.070 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
  284.070 occurred.
         (c)  It is a defense to prosecution under Section
  284.0701(c), (d-1) [(d)], or (e) that the vehicle in question was
  stolen before the failure to pay the proper toll occurred and had
  not been recovered before the failure to pay occurred, but only if
  the theft was reported to the appropriate law enforcement authority
  before the earlier of:
               (1)  the occurrence of the failure to pay; or
               (2)  eight hours after the discovery of the theft.
         SECTION 1.31.  Section 366.178, Transportation Code, is
  amended by amending Subsections (f) and (i) and adding Subsection
  (i-1) to read as follows:
         (f)  In the prosecution of a violation for nonpayment, proof
  that the vehicle passed through a toll collection facility without
  payment of the proper toll together with proof that the defendant
  was the registered owner or the driver of the vehicle when the
  failure to pay occurred, establishes the nonpayment of the
  registered owner. The proof may be by testimony of a peace officer
  or authority employee, video surveillance, or any other reasonable
  evidence, including a copy of the rental, lease, or other contract
  document or the electronic data provided to the authority under
  Subsection (i) that shows the defendant was the lessee of the
  vehicle when the underlying event of nonpayment occurred.
         (i)  A registered owner who is the lessor of a vehicle for
  which a notice of nonpayment has been issued is not liable if, not
  later than the 30th day after the date the notice of nonpayment is
  mailed, the registered owner provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document [lease agreement] covering the vehicle on the date of the
  nonpayment, with the[. The] name and address of the lessee [must
  be] clearly legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under this section.
         (i-1)  If the lessor timely provides the required
  information under Subsection (i), the lessee of the vehicle on the
  date of the violation is considered to be the owner of the vehicle
  for purposes of this section. The lessee is subject to prosecution
  for failure to pay the proper toll if the authority sends a notice
  of nonpayment to the lessee by first-class mail not later than the
  30th day after the date of the receipt of the information from the
  lessor.
         SECTION 1.32.  Section 370.177, Transportation Code, is
  amended by amending Subsections (e), (g), and (i) and adding
  Subsection (e-1) to read as follows:
         (e)  It is an exception to the application of Subsection (b)
  or (d) that the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Subsection (a), with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Subsection (a).
         (e-1)  If the lessor provides the required information
  within the period prescribed under Subsection (e), the authority
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (e) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee 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 fee within the time specified by the
  notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative fee for each event of nonpayment.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         (g)  An offense under Subsection (d), (e-1) [(e)], or (f) is
  a misdemeanor punishable by a fine not to exceed $250.
         (i)  In the prosecution of an offense under this section,
  proof that the vehicle passed through a toll collection facility
  without payment of the proper toll together with proof that the
  defendant was the registered owner or the driver of the vehicle when
  the failure to pay occurred, establishes the nonpayment of the
  registered owner. The proof may be by testimony of a peace officer
  or authority employee, video surveillance, or any other reasonable
  evidence, including:
               (1)  evidence obtained by automated enforcement
  technology that the authority determines is necessary, including
  automated enforcement technology described by Sections 228.058(a)
  and (b); or
               (2)  a copy of the rental, lease, or other contract
  document or the electronic data provided to the authority under
  Subsection (e) that shows the defendant was the lessee of the
  vehicle when the underlying event of nonpayment occurred.
         SECTION 1.33.  Subchapter A, Chapter 621, Transportation
  Code, is amended by adding Section 621.008 to read as follows:
         Sec. 621.008.  STUDY REGARDING OVERSIZE AND OVERWEIGHT
  VEHICLES. (a) The department shall conduct a study to determine
  improvements to the regulation of oversize and overweight vehicles.
         (b)  In conducting the study, the department shall consider:
               (1)  prohibiting overweight vehicles or vehicle
  combinations from traveling on state highways if the vehicle or
  combination will cause damage to a road or bridge, based on the
  weight or load specifications to which the road or bridge was built;
               (2)  requiring each applicant for a permit under
  Chapter 623 to pay a graduated highway maintenance fee based on
  weight and the amount of damage done by the permitted vehicle or
  vehicle combination to roads and bridges;
               (3)  requiring each fee collected for an overweight or
  oversize vehicle permit to be deposited in the state highway fund;
  and
               (4)  eliminating all exemptions for overweight
  vehicles.
         (c)  Not later than September 1, 2010, the department shall
  report the results of the study conducted under this section to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the appropriate oversight committee of each
  house of the legislature.
         (d)  This section expires September 1, 2011.
         SECTION 1.34.  Section 201.0545, Transportation Code, is
  repealed.
         SECTION 1.35.  Section 545.353, Transportation Code, is
  amended by adding Subsection (h-2) to read as follows:
         (h-2)  Notwithstanding Section 545.352(b), the commission
  may establish a speed limit of 85 miles per hour on a part of the
  state highway system if:
               (1)  as a result of an engineering and traffic
  investigation the commission determines that 85 miles per hour is a
  reasonable and safe speed for that part of the highway system; and
               (2)  that part of the highway system is designed for
  travel at a speed of 85 miles per hour or more.
         SECTION 1.36.  (a) The terms of the members of the Texas
  Transportation Commission serving on January 31, 2010, expire
  February 1, 2011.
         (b)  Not later than January 31, 2011, the governor shall
  appoint the members of the Texas Transportation Commission in
  accordance with Section 201.051(a), Transportation Code, as
  amended by this article, to serve terms beginning February 1, 2011.
  ARTICLE 2. TRANSPORTATION PLANNING AND PROJECT DEVELOPMENT PROCESS
         SECTION 2.01.  Section 201.001(a), Transportation Code, is
  amended by adding Subdivision (4) to read as follows:
               (4)  "Metropolitan planning organization" has the
  meaning assigned by Section 472.031, Transportation Code.
         SECTION 2.02.  Section 201.601, Transportation Code, is
  amended to read as follows:
         Sec. 201.601.  STATEWIDE TRANSPORTATION PLAN. (a) The
  department shall develop a statewide transportation plan covering a
  period of not less than 25 years that contains all modes of
  transportation, including:
               (1)  highways and turnpikes;
               (2)  aviation;
               (3)  mass transportation;
               (4)  railroads and high-speed railroads; and
               (5)  water traffic.
         (a-1)  The plan must:
               (1)  contain specific, long-term transportation goals
  for the state and measurable targets for each goal;
               (2)  identify priority corridors, projects, or areas of
  the state that are of particular concern to the department in
  meeting the goals established under Subdivision (1); and
               (3)  contain a participation plan for obtaining input
  on the goals and priorities identified under this subsection from:
                     (A)  other state agencies;
                     (B)  political subdivisions;
                     (C)  planning organizations as defined in Section
  201.981(2); and
                     (D)  members of the general public.
         (b)  [In developing the plan, the department shall seek
  opinions and assistance from other state agencies and political
  subdivisions that have responsibility for the modes of
  transportation listed by Subsection (a).] As appropriate, the
  department and one or more of the entities listed in Subsection
  (a-1)(3) [such an agency or political subdivision] shall enter into
  a memorandum of understanding relating to the planning of
  transportation services.
         (c)  The plan must include a component that is not
  financially constrained and identifies transportation improvements
  designed to relieve congestion. In developing this component of
  the plan, the department shall seek opinions and assistance from
  officials who have local responsibility for modes of transportation
  listed in Subsection (a).
         (d)  If there is a conflict between obligations and
  requirements imposed in federal law governing the transportation
  planning, project development, and programming process for the
  department and planning organizations as defined in Section
  201.981(2), and those imposed in this title, federal law controls
  and the commission may take any action that is necessary in its
  reasonable judgment to comply with any federal law to enable this
  state to receive federal aid funds.
         (e)  The department shall update the plan every five years or
  more frequently as necessary. [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 2.03.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Sections 201.6012, 201.6015, 201.621,
  201.622, and 201.623 to read as follows:
         Sec. 201.6012.  INTEGRATION OF PLANS AND POLICY EFFORTS. In
  developing each of its transportation plans and policy efforts, the
  department must clearly reference the 25-year plan developed under
  Section 201.601 and specify how the plan or policy effort supports
  or otherwise relates to the specific goals contained in that plan.
         Sec. 201.6015.  DELEGATION OF DUTIES OR POWERS TO
  METROPOLITAN PLANNING ORGANIZATION. A metropolitan planning
  organization may agree to accept additional responsibilities
  delegated by the commission concerning transportation planning and
  project selection.
         Sec. 201.621.  METROPOLITAN TRANSPORTATION PLAN. (a) A
  metropolitan planning organization shall prepare and periodically
  update a long-range transportation plan for its service area as
  required by federal law.
         (b)  The first 10 years of the long-range plan must be
  identical to the plan developed under Section 201.983.
         (c)  Before approving a long-range transportation plan, a
  metropolitan 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 metropolitan 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 and format established by the commission. The
  format of the plan must be in plain English and easily reviewable
  and understandable. The metropolitan planning organization shall
  update the plan every year or more frequently as necessary.
         Sec. 201.622.  COOPERATION WITH METROPOLITAN PLANNING
  ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The
  department and metropolitan planning organizations shall cooperate
  to develop mutually acceptable assumptions for the purposes of
  long-range federal and state funding forecasts that are consistent
  with the criteria established by the commission under Section
  201.987 and use those criteria to guide long-range planning.
         Sec. 201.623.  RECOMMENDATIONS FROM RURAL PLANNING
  ORGANIZATION. A rural planning organization may make
  recommendations to the commission concerning the selection of
  transportation projects, systems, or programs to be undertaken in
  the boundaries of the rural planning organization.
         SECTION 2.04.  Section 201.617(a), Transportation Code, as
  transferred by Chapter 281 (H.B. 2702), Acts of the 79th
  Legislature, Regular Session, 2005, is amended to read as follows:
         (a)  If authorized by an applicable regulatory authority, to
  mitigate an adverse environmental impact that is a direct result of
  the construction, improvement, or maintenance of a state highway or
  the construction, improvement, or maintenance of a facility used in
  connection with the construction, maintenance, or operation of a
  state highway improvement project, the department may:
               (1)  pay a fee to an appropriate public agency or
  private entity in lieu of acquiring or agreeing to manage property;
               (2)  transfer any interest in real property to an
  appropriate public agency or private entity, as authorized by the
  regulatory authority that requires the mitigation, with or without
  monetary consideration if the property is used or is proposed to be
  used for mitigation purposes; or
               (3)  contract with any public or private entity for the
  management of property owned by the department and used for
  mitigation purposes.
         SECTION 2.05.  Subchapter I, Chapter 201, Transportation
  Code, is amended by adding Sections 201.711 and 201.712 to read as
  follows:
         Sec. 201.711.  ELIGIBILITY FOR STATE ALLOCATION OF FUNDING;
  BOARD MEMBERSHIP. (a) To be eligible to receive funds from this
  state for transportation projects under Section 201.988, not more
  than 50 percent of the voting members of the policy board of a
  metropolitan planning organization must be elected officials who
  are elected in the boundaries of the metropolitan planning
  organization.
         (b)  A metropolitan planning organization that is not
  eligible under Subsection (a) may redesignate the board in
  compliance with the redesignation procedures in 23 U.S.C. Section
  134 to become eligible to receive an allocation of funds under
  Section 201.988.
         (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. 201.712.  FUNDS FOR RURAL PLANNING ORGANIZATION. The
  department may use money in the state highway fund to fund the
  operations of a rural planning organization.
         SECTION 2.06.  (a) Subchapter J, Chapter 201,
  Transportation Code, is amended by adding Sections 201.8005,
  201.807, 201.808, 201.809, 201.810, and 201.811 to read as follows:
         Sec. 201.8005.  DEFINITION. In this subchapter,
  "transportation project" has the meaning assigned by Section
  201.981.
         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 information regarding all of the
  department's transportation projects contained in the project
  development program required by Section 201.982 or under
  construction. The information must be easily accessible,
  understandable, and searchable. The project information reporting
  system must contain:
               (1)  information about each of the department's
  transportation projects included in the project development
  program, 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 as to how each
  person on that list may be contacted; and
                     (F)  the results of the annual review required by
  Subsection (d);
               (2)  a representational color-coded map showing the
  location of the transportation projects and containing the
  information described by Subdivision (1);
               (3)  each construction work zone for a transportation
  project under construction that has a total construction timeline
  that exceeds six months 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 traffic delay resulting from
  each lane closure;
               (4)  road maintenance transportation projects that are
  planned or under construction, including the condition of each road
  before the road maintenance transportation project; and
               (5)  each fund source for the department's funds and all
  expenditures made by the department, for each of the department's
  transportation projects, reported by:
                     (A)  department district;
                     (B)  program funding category as required by
  Section 201.982(b)(2); and
                     (C)  type of revenue, including revenue from a
  comprehensive development agreement or a toll project.
         (b)  In developing the project information reporting system,
  the department shall collaborate with:
               (1)  the Transportation Legislative Oversight
  Committee;
               (2)  local transportation entities as defined by
  Section 201.981; and
               (3)  members of the general public.
         (c)  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.
         (d)  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
  transportation project included in the department's project
  development program, to determine the completion rates of the
  projects and whether the projects were completed on time.
         (e)  The department shall update the information contained
  in the project information reporting system at least quarterly and
  the representational map at least annually.
         Sec. 201.808.  TRANSPORTATION PROJECT AND PERFORMANCE
  REPORTS. (a) The department shall develop a process to identify
  and distinguish between the transportation projects that are
  required to maintain the state infrastructure and the
  transportation projects that would improve the state
  infrastructure in a manner consistent with the statewide
  transportation plan required by Section 201.601.
         (b)  The department shall establish a transportation project
  and performance reporting system that makes available in a central
  location on the department's Internet website easily accessible and
  searchable information regarding the priority classifications
  established under Section 201.986 and the assignment of the
  identified transportation projects in the classifications.
         (c)  The department shall include in the transportation
  project and performance reporting system:
               (1)  a list of the most significant transportation
  problems in each department district as described by the statewide
  transportation plan developed under Section 201.601, including the
  component required by Section 201.601(c);
               (2)  reports prepared by the department or an
  institution of higher education that evaluate the effectiveness of
  the department's expenditures on transportation projects to
  achieve the transportation goals;
               (3)  information about the condition of the pavement
  for each segment of the state highway system, 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;
               (4)  the condition of bridges, including information
  about:
                     (A)  the number of on-system and off-system
  bridges that are structurally deficient or functionally obsolete;
  and
                     (B)  the percentage of bridges that the department
  determines to be in good or better condition;
               (5)  information about traffic congestion and traffic
  delays, including:
                     (A)  the locations of the worst metropolitan
  traffic delays;
                     (B)  the variable travel time for major freeways
  and highways in the metropolitan areas of this state; and
                     (C)  the effect of traffic congestion on motor
  vehicle travel and motor carriers; and
               (6)  information about the number of traffic accidents,
  injuries, and fatalities, including the geographic 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 about a specific
  county, a highway under the jurisdiction of the department, or a
  type of road.
         (e)  Each department district shall enter information into
  the transportation project and performance reporting system,
  including information about:
               (1)  each district transportation project; and
               (2)  the priority classification to which the project
  has been assigned according to Section 201.986.
         (f)  The transportation project and performance reporting
  system must allow a person to compare information produced by that
  system to information produced by the project information reporting
  system under Section 201.807.
         (g)  The department shall make available in a central
  location on the department's Internet website information
  regarding each fund source for the department's funds and all
  expenditures made by the department, reported by:
               (1)  department district;
               (2)  program funding category; and
               (3)  type of revenue, including revenue from a
  comprehensive development agreement or a toll project.
         Sec. 201.809.  STATEWIDE TRANSPORTATION REPORT. (a) The
  department annually shall evaluate and publish a report about the
  status of each transportation goal for this state. The report must
  include:
               (1)  information about the progress of each long-term
  transportation goal that is identified by the statewide
  transportation plan;
               (2)  the status of each project identified as a major
  project under Section 201.985;
               (3)  a summary of the number of statewide project
  implementation benchmarks that have been completed; and
               (4)  information about the accuracy of previous
  department financial forecasts.
         (b)  The department shall disaggregate the project
  information in the report by department district.
         (c)  The department shall make available a copy of the
  reports for department districts in a legislative district to each
  member of the legislature, and at the request of a member, a senior
  management employee shall meet with the member to explain the
  report.
         (d)  The department shall provide a copy of each district
  report to the political subdivisions located in the department
  district that is the subject of the report, including:
               (1)  a municipality;
               (2)  a county; and
               (3)  a local transportation entity as defined by
  Section 201.981.
         (e)  The department shall provide a copy of the complete
  report to the lieutenant governor, the speaker of the house of
  representatives, and the chair of the standing committee of each
  house of the legislature with primary jurisdiction over
  transportation issues.
         Sec. 201.810.  SEPARATE SUBACCOUNT REPORTING. (a) The
  department shall develop an account information reporting system
  that makes available on the department's Internet website for
  viewing and downloading by interested persons the tracking of each
  separate subaccount in the state highway fund required by law,
  including Chapter 228. The account information must include:
               (1)  the source and amount of the deposited funds and
  the date of deposit;
               (2)  identification by location and highway
  designation of the projects or systems to which the funds are
  allocated; and
               (3)  the amount, general type or purpose, and date of
  expenditures from the account.
         (b)  The department shall update the account information
  reporting system at least quarterly.
         Sec. 201.811.  DEPARTMENT INFORMATION CONSOLIDATION. (a)
  To the extent practicable and to avoid duplication of reporting
  requirements, the department may combine the reports required under
  this subchapter with reports required under other provisions of
  this code.
         (b)  The department shall develop a central location on the
  department's Internet website that provides easily accessible and
  searchable information to the public contained in the reports
  required under this subchapter and other provisions of this code.
         (b)  Not later than September 1, 2009, the Texas Department
  of Transportation shall establish the central location on the
  department's Internet website required by Sections 201.807 and
  201.808, Transportation Code, as added by this section.
         SECTION 2.07.  Chapter 201, Transportation Code, is amended
  by adding Subchapter P to read as follows:
  SUBCHAPTER P. PROJECT DEVELOPMENT PROGRAM
         Sec. 201.981.  DEFINITIONS. In this subchapter:
               (1)  "Local transportation entity" means an entity that
  participates in the transportation planning process. The term
  includes:
                     (A)  a metropolitan planning organization;
                     (B)  a rural planning organization;
                     (C)  a regional tollway authority organized under
  Chapter 366;
                     (D)  a regional transportation authority
  operating under Chapter 452;
                     (E)  a rural transit district as defined by
  Section 458.001;
                     (F)  a coordinated county transportation
  authority operating under Chapter 460; and
                     (G)  a regional mobility authority operating
  under Chapter 370.
               (2)  "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 or a rural planning
  organization, the department district.
               (3)  "Transportation project" means the planning,
  right-of-way acquisition, expansion, improvement, addition, or
  contract maintenance, other than the routine or contracted routine
  maintenance, of:
                     (A)  a bridge;
                     (B)  a highway;
                     (C)  a toll road or toll road system;
                     (D)  a railroad;
                     (E)  an enhancement of a roadway that increases
  the safety of the traveling public;
                     (F)  an air quality improvement initiative; or
                     (G)  a transportation enhancement activity under
  23 U.S.C. Section 133.
         Sec. 201.982.  PROJECT DEVELOPMENT PROGRAM. (a) The
  department shall develop a project development program that covers
  a period of 10 years to guide the development of and authorize
  construction of transportation projects. The program must:
               (1)  estimate funding levels for each year; and
               (2)  list all projects and programs that the department
  intends to develop or begin construction of during the program
  period.
         (b)  The commission by rule shall:
               (1)  specify the criteria for selecting projects to be
  included in the program as provided in Section 201.987;
               (2)  define program funding categories, including
  categories for safety, bridge, maintenance, and mobility; and
               (3)  define each phase of a major transportation
  project, including the planning, design, and construction phases.
         (c)  The department shall publish the entire project
  development program and summary documents highlighting project
  benchmarks, priorities, and forecasts in appropriate media and on
  the department's Internet website.
         (d)  In developing the rules required by this section, the
  commission shall cooperate with local transportation entities.
         Sec. 201.9825.  ANNUAL UPDATE TO PROJECT DEVELOPMENT
  PROGRAM. (a) The department shall annually update the project
  development program.
         (b)  The annual update must include:
               (1)  the annual funding forecast required by Section
  201.984;
               (2)  the list of major transportation projects required
  by Section 201.985(b); and
               (3)  the projects included in each program priority
  classification established by Section 201.986.
         (c)  The department shall collaborate with local
  transportation entities to develop the annual update to the project
  development program.
         Sec. 201.983.  PLANNING ORGANIZATION 10-YEAR PLAN. (a)
  Each planning organization shall develop a 10-year transportation
  plan that is consistent with the criteria and definitions adopted
  by the commission under Section 201.982.
         (b)  The first four years of the plan shall be developed so as
  to comply with the transportation improvement plan requirements of
  federal law.
         (c)  In developing the statewide transportation improvement
  plan in accordance with federal law, the department shall:
               (1)  compile the metropolitan planning organizations'
  project selections; and
               (2)  collaborate with the rural planning
  organizations.
         (d)  The department shall develop the statewide
  transportation improvement plan in accordance with federal law.
         Sec. 201.9835.  PROJECT PRIORITIZATION BY PLANNING
  ORGANIZATIONS. (a) Each metropolitan planning organization shall,
  for the area in its boundaries, develop a prioritized list of
  transportation projects that is consistent with the criteria
  established by the commission under Section 201.987. Projects that
  are not considered by the department and the planning organization
  to be of an appropriate scale for individual identification in a
  given program year may be grouped by function, geographic area, or
  work type.
         (b)  The department shall, with input from a rural planning
  organization, develop a prioritized list of transportation
  projects for the area in that rural planning organization's
  boundaries and submit the projects to the commission for final
  approval.
         (c)  For an area not located in the boundaries of a planning
  organization, the applicable department district shall:
               (1)  develop a prioritized list of transportation
  projects with input from municipal and county officials and
  officials of local transportation entities; and
               (2)  submit the transportation projects to the
  commission for final approval.
         Sec. 201.984.  ANNUAL FUNDING AND CASH FLOW FORECASTS. (a)
  The department annually shall:
               (1)  develop and publish a forecast of all funds the
  department expects to receive, including funds from this state and
  the federal government; and
               (2)  use that forecast to guide planning for the
  project development program.
         (b)  The department shall collaborate with local
  transportation entities to develop scenarios for the forecast
  required by Subsection (a) based on mutually acceptable funding
  assumptions.
         (c)  Not later than August 31 of each odd-numbered year, the
  department shall prepare and publish a cash flow forecast for the
  10-year period that begins on September 1 of that odd-numbered
  year.
         (d)  The department shall update the forecast more
  frequently as needed if significant changes in the department's
  funding occur.
         Sec. 201.985.  DESIGNATION AND INFORMATION ON CONSTRUCTION
  OF MAJOR TRANSPORTATION PROJECTS. (a) The commission by rule
  shall:
               (1)  establish criteria for designating a project as a
  major transportation project;
               (2)  develop benchmarks for evaluating the progress of
  a major transportation project and timelines for implementation and
  construction of a major transportation project; and
               (3)  determine which critical benchmarks must be met
  before a major transportation project may enter the implementation
  phase of the project development program.
         (b)  The department shall annually update the list of
  projects that are designated as major transportation projects.
         (c)  In adopting rules required by this section, the
  commission shall collaborate with local transportation entities.
         Sec. 201.986.  PROGRAM PRIORITY CLASSIFICATIONS. (a) The
  commission by rule shall establish classifications in the project
  development program to designate the priority of each project
  included in the program and shall assign each project a
  classification. The classifications must include high, medium, and
  low priority levels.
         (b)  The department shall collaborate with local
  transportation entities when assigning each project included in the
  project development program to a classification established under
  Subsection (a).
         (c)  In the selection of projects for implementation,
  priority shall be given to projects with the highest classification
  within each applicable program funding category described by
  Section 201.982(b)(2).
         Sec. 201.987.  PROJECT SELECTION. (a) The commission by
  rule shall establish criteria for selection by the department and
  each planning organization of projects to be included in the
  statewide transportation plan. The criteria must be based on the
  commission's transportation goals for the state and measurable
  targets for each goal.
         (b)  The department shall collaborate with planning
  organizations in the development of the criteria for selection of
  projects.
         (c)  The commission shall determine and approve the final
  selection of projects to be included in the statewide
  transportation plan.
         (d)  The commission shall consider the prioritized list of
  transportation projects developed by metropolitan planning
  organizations operating in areas that are a transportation
  management area, as defined by 23 U.S.C. Section 134(k), for
  projects funded as congestion mitigation and air quality
  improvement projects, and metropolitan mobility or rehabilitation
  projects, unless the commission determines that a particular
  project's inclusion on or omission from the project list conflicts
  with or is inconsistent with federal law or a rule adopted under
  Subsection (a).
         Sec. 201.988.  FUNDING ALLOCATION. (a) The commission by
  rule shall establish formulas for allocating funds in each category
  described by Section 201.982(b)(2).
         (b)  The commission shall update the formulas established
  under this section every five years or more frequently as
  necessary.
         Sec. 201.9882.  LIMITATION ON COMMISSION ALLOCATION OF
  FUNDS. (a) The commission or the department may not require that a
  toll project be included in a regional mobility plan as a condition
  for the allocation of funds for the construction of projects in the
  region.
         (b)  The commission or the department may not:
               (1)  revise the formula as provided in the department's
  project development program, or its successor document, in a manner
  that results in a decrease of a department district's allocation
  because of:
                     (A)  the failure of a region to include toll
  projects in a regional mobility plan; or
                     (B)  participation by a political subdivision in
  the funding of a transportation project in the region, including
  the use of money collected in a transportation reinvestment zone
  under Sections 222.106 and 222.107; or
               (2)  take any other action that would reduce funding
  allocated to a department district because of the failure of a
  region to include toll projects in a regional mobility plan.
         Sec. 201.9884.  FUND DISTRIBUTION. (a) The department
  shall allocate funds to the department districts based on the
  formulas adopted under Section 201.988.
         (b)  In distributing funds to department districts, the
  department may not exceed the cash flow forecast prepared and
  published under Section 201.984(c).
         Sec. 201.989.  DEPARTMENT FOUR-YEAR BUSINESS WORK PLAN. (a)
  Each department district shall develop a consistently formatted
  work plan for the following four years that is based on the project
  development program and contains all projects and project
  categories that the district plans to implement during that period.
         (b)  The work plan must contain for each project and project
  category:
               (1)  a project schedule with funding for each phase of
  development;
               (2)  a right-of-way acquisition plan;
               (3)  a letting plan; and
               (4)  a summary of the progress on the project and
  project category.
         (c)  The department shall use the work plan to:
               (1)  monitor the performance of the district; and
               (2)  evaluate the performance of district employees.
         (d)  The department shall consolidate the districts' work
  plans into a statewide work plan and publish it in appropriate media
  and on the department's Internet website.
         Sec. 201.9892.  PERFORMANCE MEASURES FOR WORK PLAN. (a) The
  department shall develop a set of performance measures for the plan
  under Section 201.989 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)  use 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 implementation
  timelines;
               (2)  the percentage of projects for which right-of-way
  acquisition is completed on or before the planned implementation
  timelines;
               (3)  the total amount spent for right-of-way as a
  percentage of the original estimated amount;
               (4)  the percentage of highway improvement contracts
  executed on or before the planned implementation timelines for
  letting;
               (5)  for all highway improvement contracts completed
  during the state fiscal year, the percentage completed within 20
  percent of the original contract time;
               (6)  for all highway improvement contracts completed
  during the state fiscal year, the percentage completed within 10
  percent of the original contract price;
               (7)  for all highway improvement contracts completed
  during the state fiscal year, the percentage of the total contract
  adjustments as a percentage of the total original contract price;
               (8)  of the federal funds subject to forfeiture at the
  end of the state fiscal year, the percentage that was committed by
  the department;
               (9)  the amounts of cash receipts and disbursements in
  contrast with the forecasted amounts;
               (10)  the amount obligated to be spent in connection
  with contracts or participation in contracts with minority,
  disadvantaged, and small business enterprises as a percentage of
  the amount spent on all contracts;
               (11)  the peak hour travel congestion in the eight
  largest metropolitan areas in contrast with previous state fiscal
  years; and
               (12)  the number of vehicle miles traveled in contrast
  with previous state fiscal years.
         (c)  The department shall consult with the Transportation
  Legislative Oversight Committee in developing the performance
  measures under Subsection (a). This subsection expires August 31,
  2013.
         Sec. 201.9895.  PERFORMANCE REVIEW. Not later than December
  1 of each odd-numbered year, the commission shall review the
  performance of the department's activities described in Section
  201.989 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 201.9892(a), statewide and by
  department district, and a status report on each major
  transportation project under development.
         SECTION 2.08.  Subchapter A, Chapter 222, Transportation
  Code, is amended by adding Section 222.004 to read as follows:
         Sec. 222.004.  AUTHORIZATION TO PROVIDE ASSISTANCE TO
  EXPEDITE ENVIRONMENTAL REVIEW. (a) The department, a county, a
  regional tollway authority operating under Chapter 366, or a
  regional mobility authority operating under Chapter 370 may enter
  into an agreement to provide funds to a state or federal agency to
  expedite the agency's performance of its duties related to the
  environmental review process for transportation projects:
                     (1)  of the department;
                     (2)  listed in a metropolitan planning
  organization's long-range transportation plan under 23 U.S.C.
  Section 134; or
                     (3)  of a county, regional tollway authority
  operating under Chapter 366, or regional mobility authority
  operating under Chapter 370.
         (b)  Except as provided by Subsection (c), an agreement
  entered into under this section:
               (1)  may specify transportation projects the
  applicable entity considers to be priorities for review; and
               (2)  must require the agency receiving money to
  complete the environmental review in less time than is customary
  for the completion of an environmental review by that agency.
         (c)  The department may enter into a separate agreement for a
  transportation project that the department determines has regional
  importance.
         (d)  An agreement entered into under this section does not
  diminish or modify the rights of the public regarding review and
  comment on transportation projects.
         (e)  An entity entering into an agreement under this section
  shall make the agreement available on the entity's Internet
  website.
         SECTION 2.09.  (a) The Texas Transportation Commission
  shall adopt the rules required by this article as soon as
  practicable but not later than March 1, 2010.
         (b)  Each planning organization, as defined by Section
  201.981, Transportation Code, as added by this article, shall
  develop its first 10-year transportation plan in accordance with
  Section 201.983, Transportation Code, as added by this article, not
  later than March 1, 2011.
         (c)  The Texas Department of Transportation shall develop
  the programs and plans required under Subchapter P, Chapter 201,
  Transportation Code, as added by this article, as soon as
  practicable but not later than December 1, 2010.
         SECTION 2.10.  Subchapter D, Chapter 472, Transportation
  Code, is amended by adding Sections 472.0331 and 472.0332 to read as
  follows:
         Sec. 472.0331.  ORGANIZATION.  (a) The governor shall
  designate, in accordance with 23 U.S.C. Section 134, a metropolitan
  planning organization for each urbanized area of this state having
  a population of more than 50,000.
         (b)  The policy board of a metropolitan planning
  organization is the governing body of that organization. Not more
  than 50 percent of the number of the voting members of the policy
  board must be elected officials whose jurisdictions are wholly or
  partially in the boundaries of the metropolitan planning
  organization.
         (c)  A metropolitan planning organization is a governmental
  entity. The policy board is subject to Chapter 551, Government
  Code.
         Sec. 472.0332.  DUTIES. In addition to the requirements of
  federal law, a metropolitan planning organization shall perform the
  duties required by state law and those delegated by the commission
  under Subchapter H, Chapter 201.
         SECTION 2.11.  Subchapter D, Chapter 472, Transportation
  Code, is amended by adding Section 472.035 to read as follows:
         Sec. 472.035.  DUTIES. The duties of a metropolitan
  planning organization are to provide regional transportation
  forecasting and planning, set regional priorities, and make project
  selection decisions as provided by federal law and the commission.
  The organization shall not be involved in project development
  activities for individual projects, including environmental
  clearance, procurement, or management of the project design and
  construction process.
         SECTION 2.12.  (a) Chapter 472, Transportation Code, is
  amended by adding Subchapter E to read as follows:
  SUBCHAPTER E.  RURAL PLANNING ORGANIZATIONS
         Sec. 472.151.  DEFINITION. "Rural planning organization"
  means a planning organization created in accordance with Section
  472.152 to carry out the rural transportation planning functions
  under Section 472.154 in areas that lie outside the boundaries of a
  metropolitan planning organization.
         Sec. 472.152.  CREATION OF RURAL PLANNING ORGANIZATION;
  BOUNDARIES. (a) A rural planning organization may be created by
  resolutions by the commissioners courts of:
               (1)  at least two counties, other than counties whose
  entire area is served by a metropolitan planning organization, that
  make up at least two-thirds of the counties in a regional planning
  commission under Chapter 391, Local Government Code; or
               (2)  at least two-thirds of the counties, other than
  counties whose entire area is served by a metropolitan planning
  organization, that make up a department district.
         (b)  As soon as practicable after its creation, a rural
  planning organization shall send notice of its creation to the
  commission.
         (c)  The boundaries of a rural planning organization created
  by counties described by Subsection (a)(1) are the boundaries of
  the area served by the regional planning commission. The
  boundaries of a rural planning organization created by counties
  described by Subsection (a)(2) are the boundaries of the department
  district.
         Sec. 472.153.  COMPOSITION OF BOARD OF DIRECTORS OF RURAL
  PLANNING ORGANIZATION. (a) A rural planning organization is
  governed by a board of directors whose membership must include:
               (1)  not more than 50 percent local elected officials
  representing political subdivisions located in the boundaries of
  the rural planning organization; and
               (2)  the district engineer of the department district
  or districts in the boundaries of the rural planning organization.
         (b)  The orders of the commissioners courts creating the
  organization under Section 472.152 must provide for the appointment
  of the initial board of directors.
         (c)  Additional directors may be appointed from residents of
  the area served by the rural planning organization in a manner
  determined by the board of directors.
         Sec. 472.154.  RURAL TRANSPORTATION PLANNING. (a) A rural
  planning organization shall:
               (1)  establish regional transportation priorities, and
  prioritize and recommend to the department projects of regional
  significance in the boundaries of the area served by the
  organization; and
               (2)  provide input to the department on projects
  involving the connectivity of the state highway system.
         (b)  A rural planning organization may provide planning
  assistance as may be necessary to support regional transportation
  priorities.
         Sec. 472.155.  DEPARTMENT PARTICIPATION. The department:
               (1)  shall provide funds and personnel to assist rural
  planning organizations with rural transportation planning, which
  may include:
                     (A)  eligible federal planning funds not
  designated for metropolitan planning organizations;
                     (B)  money appropriated to the department from the
  state highway funds; and
                     (C)  other funds as may be available to fund the
  operations of a rural planning organization;
               (2)  shall work with rural planning organizations to
  identify available sources of funding for rural transportation
  planning, which may include federal funds or transportation
  development credits; and
               (3)  may contract with rural planning organizations to
  provide services necessary to support rural transportation
  planning.
         (b)  A rural planning organization created by board
  resolution of a council of governments before the effective date of
  this Act that otherwise conforms to the requirements of this
  section is recognized as having been validly created under this
  Act.
  ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS
         SECTION 3.01.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Section 201.605 to read as follows:
         Sec. 201.605.  PUBLIC PARTICIPATION. (a)  The commission by
  rule shall provide for the department to hold, or provide the
  opportunity for, one or more public hearings for any transportation
  project owned or operated by the department that requires the
  acquisition of significant amounts of rights-of-way, substantially
  changes the layout or functions of connecting roadways or of a
  facility being improved, has a substantial adverse impact on
  abutting property, or otherwise has a significant social, economic,
  environmental, or other effect, or for which the department
  determines that a public hearing is in the public interest. The
  rules must provide for the public's submission of oral or written
  comments and the department's preparation of written responses to
  the comments. The department shall prepare a transcript of any oral
  comments submitted.
         (b)  The commission by rule shall provide for the department
  to hold, or provide the opportunity for, one or more public meetings
  for an informal exchange of information between the department and
  the public for a transportation project owned or operated by the
  department. The rules must provide for the public meetings to be
  held at the earliest stages of the project as possible.
         (c)  Notice of a public hearing or a public meeting under
  this section must:
               (1)  be by publication in the locality of the
  transportation project not less than seven or more than 20 days
  before the date of the hearing or meeting;
               (2)  be distributed to the public not less than seven
  days before the date of the hearing or meeting using methods
  suitable for the distribution given the nature of the
  transportation project and the populations that may be affected by
  it;
               (3)  be simple, readable, and informative;
               (4)  include:
                     (A)  the name and description of the project;
                     (B)  a map or graphic illustration of the project;
                     (C)  the reason for the project;
                     (D)  the purpose of the hearing or meeting;
                     (E)  the location, date, and time of the hearing
  or meeting;
                     (F)  a contact telephone number for information
  about the hearing or meeting; and
                     (G)  the Internet website address where project
  information and the materials used at the hearing or meeting may be
  viewed; and
               (5)  if the population that will be affected by the
  project is significantly non-English-speaking, also be published
  in the dominant language of a majority of that population.
         (d)  Any interested person may attend a public hearing or a
  public meeting held under this section.
         (e)  The department shall publish on its Internet website any
  materials used at a public hearing or public meeting not later than
  the third day after the date of the hearing or meeting.
         (f)  If the department holds more than one public hearing or
  one public meeting for a transportation project, the department
  shall vary the scheduling of the hearings or meetings to
  accommodate persons living in different geographic areas affected
  by the project and persons with varied work schedules.
         (g)  The department's presentation of information at a
  public hearing or meeting must include:
               (1)  the design and schematic layout of the project;
               (2)  the problem or need to be addressed by the project;
               (3)  a reference to the part of the department's
  mission, strategic plan, or legislative direction that is furthered
  by the project, and the project's relation to the local planning
  process;
               (4)  an explanation using diagrams, flowcharts, or
  other devices to illustrate procedural steps of the project, and an
  estimated timeline leading to the completion of the project; and
               (5)  a discussion of significant impacts of the
  project.
         (h)  The department shall make available an electronic mail
  address or Internet website that may be used to submit public
  comments concerning a project.
         (i)  The commission by rule shall provide owners of adjoining
  property and affected local governments and public officials with
  notice and an opportunity for comment on a state highway project
  that involves:
               (1)  the addition of one or more vehicular lanes to an
  existing highway; or
               (2)  the construction of a highway at a new location.
         (j)  The commission by rule shall provide procedures for
  informing adjoining property owners and affected local governments
  and public officials of impending construction.
         SECTION 3.02.  (a) Section 201.801, Transportation Code, is
  amended to read as follows:
         Sec. 201.801.  [INFORMATION ABOUT DEPARTMENT;] COMPLAINTS.
  (a) The department shall maintain a system to promptly and
  efficiently act on complaints filed with the department. The
  department shall maintain information about the parties to and the
  subject matter of a complaint and a summary of the results of the
  review or investigation of the complaint and the disposition of the
  complaint.
         (b)  The department shall make information available
  describing its procedures for complaint investigation and
  resolution [prepare information of public interest describing the
  functions of the department and the department's procedures by
  which a complaint is filed with the department and resolved by the
  department. The department shall make the information available to
  the public and appropriate state agencies].
         [(b)     The commission by rule shall establish methods by which
  consumers and service recipients are notified of the department's
  name, mailing address, and telephone number for directing
  complaints to the department. The commission may provide for that
  notification:
               [(1)     on each registration form, application, or
  written contract for services of an individual or entity regulated
  by the department;
               [(2)     on a sign prominently displayed in the place of
  business of each individual or entity regulated by the department;
  or
               [(3)     in a bill for service provided by an individual or
  entity regulated by the department.]
         (c)  [The department shall:
               [(1)     keep an information file about each written
  complaint filed with the department that the department has the
  authority to resolve; and
               [(2)     provide the person who filed the complaint, and
  each person or entity that is the subject of the complaint,
  information about the department's policies and procedures
  relating to complaint investigation and resolution.
         [(d)]  The department[, at least quarterly and until final
  disposition of a written complaint that is filed with the
  department and that the department has the authority to resolve,]
  shall periodically notify the parties to the complaint of its
  status until final disposition unless the notice would jeopardize
  an undercover investigation.
         (d)  The commission shall adopt rules applicable to each
  division and district to establish a process to act on complaints
  filed with the department [(e)     With regard to each complaint filed
  with the department, the department shall keep the following
  information:
               [(1)  the date the complaint is filed;
               [(2)  the name of the person filing the complaint;
               [(3)  the subject matter of the complaint;
               [(4)     a record of each person contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     if the department takes no action on the
  complaint, an explanation of the reasons that no action was taken].
         (e)  The department shall develop a standard form for
  submitting a complaint and make the form available on its Internet
  website. The department shall establish a method to submit
  complaints electronically.
         (f)  The department shall develop a method for analyzing the
  sources and types of complaints and violations and establish
  categories for the complaints and violations. The department shall
  use the analysis to focus its information and education efforts on
  specific problem areas identified through the analysis.
         (g)  The department shall:
               (1)  compile:
                     (A)  detailed statistics and analyze trends on
  complaint information, including:
                           (i)  the nature of the complaints;
                           (ii)  their disposition; and
                           (iii)  the length of time to resolve
  complaints; and
                     (B)  complaint information on a district and a
  divisional basis; and
               (2)  report the information on a monthly basis to the
  division directors, office directors, and district engineers and on
  a quarterly basis to the commission.
         (b)  The Texas Department of Transportation shall adopt
  rules under Section 201.801, Transportation Code, as amended by
  this section, not later than March 1, 2010.
         SECTION 3.03.  Subchapter J, Chapter 201, Transportation
  Code, is amended by adding Section 201.812 to read as follows:
         Sec. 201.812.  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 commission in an
  open meeting; and
               (2)  report this information on the department's
  Internet website in a timely manner.
         SECTION 3.04.  Subchapter B, Chapter 203, Transportation
  Code, is repealed.
  ARTICLE 4. CONTRACTING FUNCTIONS
         SECTION 4.01.  Section 223.002, Transportation Code, is
  amended to read as follows:
         Sec. 223.002.  NOTICE OF BIDS [BY PUBLICATION]. [(a)] The
  department shall give [publish] notice to interested persons
  regarding [of] the time and place at which bids on a contract will
  be opened and the contract awarded. The department by rule shall
  determine the most effective method for providing the notice
  required by this section.
         [(b)     The notice must be published in a newspaper published
  in the county in which the improvement is to be made once a week for
  at least two weeks before the time set for awarding the contract and
  in two other newspapers that the department may designate.
         [(c)     Instead of the notice required by Subsection (b), if
  the department estimates that the contract involves an amount less
  than $300,000, notice may be published in two successive issues of a
  newspaper published in the county in which the improvement is to be
  made.
         [(d)     If a newspaper is not published in the county in which
  the improvement is to be made, notice shall be published in a
  newspaper published in the county:
               [(1)     nearest the county seat of the county in which the
  improvement is to be made; and
               [(2)  in which a newspaper is published.]
         SECTION 4.02. Section 223.205, Transportation Code, is
  amended by amending Subsections (a), (b), (d), (f), and (g) and
  adding Subsections (h) and (i) to read as follows:
         (a)  The [Notwithstanding Section 223.006 and the
  requirements of Subchapter B, Chapter 2253, Government Code, the]
  department shall require a private entity entering into a
  comprehensive development agreement under this subchapter to
  provide a performance and payment bond or an alternative form of
  security, or a combination of forms of security, in an amount as
  determined by the department that is sufficient to:
               (1)  ensure the proper performance of the construction
  work to be performed under the agreement; and
               (2)  protect:
                     (A)  the department; and
                     (B)  payment bond beneficiaries who have a direct
  contractual relationship with the private entity or a subcontractor
  of the private entity to supply labor or material for the
  construction work.
         (b)  A performance and payment bond or alternative form of
  security shall be in an amount equal to the cost of constructing [or
  maintaining] the project.
         (d)  A [payment or performance] bond or alternative form of
  security is not required for the portion of an agreement that is for
  [includes] only design or planning services, the performance of
  preliminary studies, [or] the acquisition of real property,
  maintenance, or operations.
         (f)  The [In addition to or instead of a performance and
  payment bond, the] department may require one or more of the
  following alternative forms of security:
               (1)  a cashier's check drawn on a financial entity
  specified by the department;
               (2)  a United States bond or note;
               (3)  an irrevocable bank letter of credit; [or]
               (4)  debt and equity contributed by the private entity
  that is not recoverable in the event of termination of the agreement
  because of the private entity's breach; or
               (5)  any other form of security determined suitable by
  the department.
         (g)  The commission [department] by rule shall prescribe
  requirements for an alternative form of security provided under
  this section.
         (h)  Section 223.006 of this code and Chapter 2253,
  Government Code, do not apply to a bond or alternative form of
  security required under this section.
         (i)  The commission shall prepare and file annually with the
  governor, the lieutenant governor, and the Legislative Budget Board
  a report providing information on the operations of highway
  projects for which a comprehensive development has been entered
  into with a private entity.
         SECTION 4.03.  Sections 223.201(a) and (g), Transportation
  Code, are amended to read as follows:
         (a)  The [Subject to Section 223.202, the] department may
  enter into a comprehensive development agreement with a private
  entity to design, develop, finance, construct, maintain, repair,
  operate, extend, or expand a:
               (1)  state highway [toll project]; or
               (2)  facility, as defined by Section 227.001, or a
  combination of facilities on the Trans-Texas Corridor[;
               [(3)     state highway improvement project that includes
  both tolled and nontolled lanes and may include nontolled
  appurtenant facilities;
               [(4)     state highway improvement project in which the
  private entity has an interest in the project; or
               [(5)     state highway improvement project financed
  wholly or partly with the proceeds of private activity bonds, as
  defined by Section 141(a), Internal Revenue Code of 1986].
         (g)  The department may combine in a comprehensive
  development agreement under this subchapter a state highway [toll
  project] and a rail facility as defined by Section 91.001.
         SECTION 4.04.  Section 223.203(e-2), Transportation Code,
  is amended to read as follows:
         (e-2)  In this section, "design-build contract" means a
  comprehensive development agreement that includes the design and
  construction of a [turnpike] project, does not include the
  financing of a [turnpike] project, and may include the acquisition,
  maintenance, or operation of a [turnpike] project.
         SECTION 4.05.  Section 223.203(m), Transportation Code, is
  amended to read as follows:
         (m)  The department may pay an unsuccessful private entity
  that submits a responsive proposal in response to a request for
  detailed proposals under Subsection (f) a stipulated amount in
  exchange for the work product contained in that proposal. A
  stipulated amount must be stated in the request for proposals and
  may not exceed the value of any work product contained in the
  proposal that can, as determined by the department, be used by the
  department in the performance of its functions. The use by the
  department of any design element contained in an unsuccessful
  proposal is subject to the private entity's acceptance of the
  stipulated amount, is at the sole risk and discretion of the
  department, and does not confer liability on the recipient of the
  stipulated amount under this section. After acceptance and payment
  of the stipulated amount:
               (1)  the department owns with the unsuccessful proposer
  jointly the rights to, and may make use of any work product
  contained in, the proposal, including the technologies,
  techniques, methods, processes, ideas, and information contained
  in the project design; and
               (2)  the use by the unsuccessful proposer of any
  portion of the work product contained in the proposal is at the sole
  risk of the unsuccessful proposer and does not confer liability on
  the department.
         SECTION 4.06.  Section 223.208(e), Transportation Code, is
  amended to read as follows:
         (e)  Notwithstanding anything in Section 201.112 or other
  law to the contrary, and subject to compliance with the dispute
  resolution procedures set out in the comprehensive development
  agreement, an obligation of the commission or the department under
  a comprehensive development agreement entered into under this
  subchapter or Section 227.023(c) to make or secure payments to a
  person because of the termination of the agreement, including the
  purchase of the interest of a private participant or other investor
  in a project, may be enforced by mandamus against the commission,
  the department, and the comptroller in a district court of Travis
  County, and the sovereign immunity of the state is waived for that
  purpose. The district courts of Travis County shall have exclusive
  jurisdiction and venue over and to determine and adjudicate all
  issues necessary to adjudicate any action brought under this
  subsection. The remedy provided by this subsection is in addition
  to any legal and equitable remedies that may be available to a party
  to a comprehensive development agreement. This subsection does not
  apply to a design-build contract, as defined by Section
  223.203(e-2), for a nontolled facility.
         SECTION 4.07.  Section 223.206(b), Transportation Code, is
  amended to read as follows:
         (b)  Notwithstanding Subsection (a), the department may
  enter into an agreement that provides for the lease of
  rights-of-way, the granting of easements, the issuance of
  franchises, licenses, or permits, or any lawful uses to enable a
  private entity to construct, operate, and maintain a project,
  including supplemental facilities.  At the termination of the
  agreement, the highway or other facilities are to be in a state of
  proper maintenance as determined by the department and [shall be]
  returned to the department in satisfactory condition at no further
  cost other than any compensation the department agrees to pay on an
  early termination of the agreement. In lieu of the private entity's
  performing necessary maintenance, repair, or renewal work before
  returning the highway or other facilities to the department, the
  agreement may require payment to the department in the amount the
  department determines to be appropriate to fund maintenance,
  repair, or renewal work that is scheduled to occur subsequent to
  termination of the agreement.
         SECTION 4.08.  Subchapter C, Chapter 371, Transportation
  Code, as added by Chapter 264 (S.B. 792), Acts of the 80th
  Legislature, Regular Session, 2007, is amended by adding Section
  371.105 to read as follows:
         Sec. 371.105.  PROHIBITION AGAINST CONCESSION PAYMENTS;
  REVENUE SHARING. (a) In this section, "concession payment" means
  an up-front payment made by a private participant in return for
  which the private participant is granted a right to operate and
  receive revenue from a toll project.
         (b)  A toll project entity is prohibited from accepting a
  concession payment as part of a comprehensive development
  agreement.
         (c)  A toll project entity may enter into a revenue sharing
  agreement with a private participant as part of a comprehensive
  development agreement.
         (d)  This section does not apply to:
               (1)  the State Highway 161 project from State Highway
  183 to Interstate Highway 20 in Dallas County;
               (2)  the United States Highway 281 project in Bexar
  County from Loop 1604 to the Comal County line;
               (3)  the Loop 49 project from Interstate Highway 20 to
  State Highway 110 in Smith County;
               (4)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of
  Farm-to-Market Road 2499 to south of State Highway 360);
               (5)  the North Tarrant Express project in Tarrant and
  Dallas Counties (Interstate Highway 820 and State Highway 121/State
  Highway 183 from Interstate Highway 35W to State Highway 161,
  Interstate Highway 820 east from State Highway 121/State Highway
  183 to Randol Mill Road, and Interstate Highway 35W from Interstate
  Highway 30 to State Highway 170);
               (6)  the United States Highway 290 project from east of
  United States Highway 183 to east of Farm-to-Market Road 973 in
  Travis County;
               (7)  the State Highway 99 (Grand Parkway) project;
               (8)  the Interstate Highway 635 managed lanes project
  in Dallas County (Interstate Highway 635 from east of Luna Road to
  Greenville Avenue and Interstate Highway 35E from south of the Loop
  12/Interstate Highway 35E split to south of Valwood Parkway);
               (9)  Phase 4 extension of the Dallas North Tollway in
  Collin and Denton Counties from United States Highway 380 to the
  Grayson County line to be developed by North Texas Tollway
  Authority;
               (10)  the Southwest Parkway (State Highway 121) in
  Tarrant County from Interstate 30 to Dirks Road/Altamesa Boulevard
  and the Chisholm Trail project from Dirks Road/Altamesa Boulevard
  to U.S. Highway 67 in the City of Cleburne; or
               (11)  a comprehensive development agreement in
  connection with a project associated with any portion of the Loop 9
  project that is located in a nonattainment air quality area as
  designated by the United States Environmental Protection Agency
  that includes two adjacent counties that each have a population of
  one million or more.
         SECTION 4.09.  Subsection (a), Section 371.151,
  Transportation Code, as added by Chapter 264 (S.B. 792), Acts of the
  80th Legislature, Regular Session, 2007, is amended to read as
  follows:
         (a)  Before a toll project entity enters into a contract for
  the construction of a toll project, the entity shall publish in the
  manner provided by Section 371.152 information regarding:
               (1)  project financing, including:
                     (A)  the total amount of debt that has been and
  will be assumed to acquire, design, construct, operate, and
  maintain the toll project;
                     (B)  a description of how the debt will be repaid,
  including a projected timeline for repaying the debt; and
                     (C)  the projected amount of interest that will be
  paid on the debt;
               (2)  whether the toll project will continue to be
  tolled after the debt has been repaid;
               (3)  a description of the method that will be used to
  set toll rates;
               (4)  a description of any terms in the contract
  relating to competing facilities, including any penalties
  associated with the construction of a competing facility;
               (5)  a description of any terms in the contract
  relating to a termination for convenience provision, including any
  information regarding how the value of the project will be
  calculated for the purposes of making termination payments;
               (6)  the initial toll rates, the methodology for
  increasing toll rates, and the projected toll rates at the end of
  the term of the contract; and
               (7)  the terms of any revenue sharing agreement [the
  projected total amount of concession payments].
         SECTION 4.10.  (a)  The changes in law made by Section
  371.151, Transportation Code, as amended by this article, and
  Section 371.105, Transportation Code, as added by this article,
  apply only to a comprehensive development agreement entered into on
  or after the effective date of this Act.
         (b)  A comprehensive development agreement entered into
  before the effective date of this Act is governed by the law in
  effect on the day the agreement was finalized, and the former law is
  continued in effect for that purpose.
  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.  Section 2301.801, Occupations Code, is
  amended by amending Subsections (a) and (c), and adding Subsections
  (d), (e), (f), and (g) to read as follows:
         Sec. 2301.801.  ADMINISTRATIVE [CIVIL] PENALTY.  (a)  If,
  after a proceeding under this chapter and board rules, the board
  determines that a person is violating or has violated this chapter,
  a rule adopted or order issued under this chapter, or Section
  503.038(a), Transportation Code, the board may impose an
  administrative [a civil] penalty. The amount of the penalty may not
  exceed $10,000 for each violation. Each act of violation and each
  day a violation continues is a separate violation.
         (c)  The board by rule shall adopt a schedule of
  administrative penalties based on the criteria in Subsection (b) to
  ensure that the amount of a penalty imposed under this section is
  appropriate to the violation [Notwithstanding any other law to the
  contrary, a civil penalty recovered under this chapter shall be
  deposited in the state treasury to the credit of the state highway
  fund].
         (d)  The enforcement of an administrative penalty ordered
  under this section 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 commission to contest the affidavit as provided by those
  rules.
         (e)  The attorney general may sue to collect an
  administrative penalty assessed under this section. 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 to the credit of the general revenue fund.
         (g)  A proceeding to impose an administrative penalty under
  this section is a contested case hearing under Chapter 2001,
  Government Code.
         SECTION 5.06.  (a) Subchapter Q, Chapter 2301, Occupations
  Code, is amended by adding Section 2301.808 to read as follows:
         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 on the department's
  Internet website information about the department's policies and
  procedures relating to complaint investigation and resolution. The
  department shall also provide that information to any person who
  requests a written copy of the information.
         (c)  The department shall keep for at least 10 years 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 Department of Transportation shall adopt
  rules under Section 391.006, Transportation Code, as added by this
  section, not later than September 1, 2010.
         SECTION 6.03.  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 6.04.  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 6.05.  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 6.06.  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 6.07.  Section 391.066, Transportation Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  The commission may deny the renewal of a license
  holder's license if the license holder has not complied with the
  permit requirements of this chapter or Chapter 394.
         SECTION 6.08.  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 6.09.  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 6.10.  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 6.11.  (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 on the department's
  Internet website information about the department's policies and
  procedures relating to complaint investigation and resolution. The
  department shall also provide that information to any person who
  requests a written copy.
         (c)  The department shall keep for at least 10 years 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 Department of Transportation shall adopt
  rules under Section 394.006, Transportation Code, as added by this
  section, not later than September 1, 2010.
         SECTION 6.12.  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 6.13.  (a) Subchapter B, Chapter 394,
  Transportation Code, is amended by adding Sections 394.0201,
  394.0202, 394.0203, 394.0204, 394.0205, 394.0206, 394.0207,
  394.027, 394.028, and 394.029 to read as follows:
         Sec. 394.0201.  ERECTING OFF-PREMISE SIGN WITHOUT LICENSE;
  OFFENSE. (a) A person commits an offense if the person wilfully
  erects or maintains an off-premise sign on a rural road without a
  license under this subchapter.
         (b)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $500 or more than $1,000. Each
  day of the proscribed conduct is a separate offense.
         (c)  A person is not required to obtain a license to erect or
  maintain an on-premise sign.
         Sec. 394.0202.  ISSUANCE AND PERIOD OF LICENSE. (a) The
  commission shall issue a license to a person who:
               (1)  files with the commission a completed application
  form within the time specified by the commission;
               (2)  pays the appropriate license fee; and
               (3)  files with the commission a surety bond.
         (b)  A license may be issued for one year or longer.
         (c)  At least 30 days before the date on which a person's
  license expires, the commission shall notify the person of the
  impending expiration. The notice must be in writing and sent to the
  person's last known address according to the records of the
  commission.
         Sec. 394.0203.  LICENSE FEE. The commission may set the
  amount of a license fee according to a scale graduated by the number
  of off-premise signs and units of outdoor advertising under Chapter
  391 owned by a license applicant.
         Sec. 394.0204.  SURETY BOND. (a) The surety bond required
  of an applicant for a license under Section 394.0202 must be:
               (1)  in the amount of $2,500 for each county in the
  state in which the person erects or maintains an off-premise sign;
  and
               (2)  payable to the commission for reimbursement for
  removal costs of an off-premise sign that the license holder
  unlawfully erects or maintains.
         (b)  A person may not be required to provide more than
  $10,000 in surety bonds.
         Sec. 394.0205.  RULES; FORMS. (a) The commission may adopt
  rules to implement Sections 394.0201(a), 394.0202, 394.0203,
  394.0204, and 394.0206.
         (b)  For the efficient management and administration of this
  chapter and to reduce the number of employees required to enforce
  this chapter, the commission shall adopt rules for issuing
  standardized forms that are for submission by license holders and
  applicants and that provide for an accurate showing of the number,
  location, or other information required by the commission for each
  license holder's or applicant's off-premise signs or outdoor
  advertising under Chapter 391.
         Sec. 394.0206.  REVOCATION OR SUSPENSION OF LICENSE; APPEAL.
  (a) The commission may revoke or suspend a license issued under
  this subchapter or place on probation a license holder whose
  license is suspended if the license holder violates this chapter or
  a rule adopted under this chapter. If the suspension of the license
  is probated, the department may require the license holder to
  report regularly to the commission on any matter that is the basis
  of the probation.
         (b)  The judicial appeal of the revocation or suspension of a
  license must be initiated not later than the 15th day after the date
  of the commission's action.
         (c)  The commission may adopt rules for the reissuance of a
  revoked or suspended license and may set fees for the reissuance.
         (d)  The commission may deny the renewal of a license
  holder's existing license if the license holder has not complied
  with the permit requirements of this chapter or Chapter 391.
         Sec. 394.0207.  APPLICABILITY OF LICENSE. In addition to
  authorizing a person to erect or maintain an off-premise sign, a
  license issued under this chapter authorizes a person to erect or
  maintain outdoor advertising under Chapter 391.
         Sec. 394.027.  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 the permit expires on or after
  the effective date of this Act. An off-premise sign for which a
  permit is issued before the effective date of this Act is covered by
  the law in effect when the permit was issued, and the former law is
  continued in effect for that purpose.
         SECTION 6.14.  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 6.15.  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 6.16.  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 6.17.  Section 391.065(c), Transportation Code, is
  repealed.
  ARTICLE 7. PUBLIC TRANSPORTATION
         SECTION 7.01.  Section 301.063(f), Labor Code, is repealed.
  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)  Chapters 642, 643, 645, 646, and 648; and
               (3)  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 vehicle distribution; and
               (4)  vehicle titles and registration.
         Sec. 1001.005.  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.
         Sec. 1001.006.  DEFENSE BY ATTORNEY GENERAL. The attorney
  general shall defend an action brought against the board or the
  department or an action brought against an employee of the
  department as a result of the employee's official act or omission,
  regardless of whether at the time of the institution of the action
  that person has terminated service with the department.
  [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)  Three members must be persons who hold a dealer's
  license issued under Chapter 2301, Occupations Code, of whom two
  must be franchised dealers of different classes and one must be an
  independent dealer; one member must be a representative of a
  manufacturer or distributor that holds a license issued under
  Chapter 2301, Occupations Code; one member must be a tax
  assessor-collector; one member must be a representative of a law
  enforcement agency of a county or municipality; and one member must
  be a representative of the motor carrier industry. The remaining
  members must be public members.
         (c)  Except as necessary to comply with Subsection (b), a
  person is not eligible for appointment as a member of the board if
  the person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization that is regulated by or
  receives funds from the department;
               (2)  directly or indirectly owns or controls more than
  10 percent interest in a business entity or other organization that
  is regulated by or receives funds from the department;
               (3)  uses or receives a substantial amount of tangible
  goods, services, or funds from the department, other than
  compensation or reimbursement authorized by law for board
  membership, attendance, or expenses; or
               (4)  is registered, certified, or licensed by the
  department.
         (d)  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 may not serve as a member of the board.
         (e)  Appointments to the board shall be made without regard
  to race, color, disability, sex, religion, age, or national origin
  of the appointees and shall reflect the diversity of the population
  of the state as a whole.
         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.  CHAIR AND VICE CHAIR; DUTIES. (a)  The
  governor shall appoint one of the board's members chair of the
  board. The board shall elect one of its members vice chair of the
  board. A chair or vice chair serves at the pleasure of the board.
         (b)  The chair shall:
               (1)  preside over board meetings, make rulings on
  motions and points of order, and determine the order of business;
               (2)  represent the department in dealing with the
  governor;
               (3)  report to the governor on the state of affairs of
  the department at least quarterly;
               (4)  report to the board the governor's suggestions for
  department operations;
               (5)  report to the governor on efforts, including
  legislative requirements, to maximize the efficiency of department
  operations through the use of private enterprise;
               (6)  periodically review the department's
  organizational structure and submit recommendations for structural
  changes to the governor, the board, and the Legislative Budget
  Board;
               (7)  designate one or more employees of the department
  as a civil rights division of the department and receive regular
  reports from the division on the department's efforts to comply
  with civil rights legislation and administrative rules;
               (8)  create subcommittees, appoint board members to
  subcommittees, and receive the reports of subcommittees to the
  board as a whole;
               (9)  appoint a member of the board to act in the chair's
  absence; and
               (10)  serve as the departmental liaison with the
  governor and the Office of State-Federal Relations to maximize
  federal funding for transportation.
         Sec. 1001.024.  BOARD MEETINGS. The board shall hold
  regular meetings at least quarterly and special meetings at the
  call of the chair. Board members shall attend the meetings of the
  board. The chair 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.  RECOMMENDATIONS TO LEGISLATURE. (a)  The
  board shall consider ways in which the department's operations may
  be improved and may periodically report to the legislature
  concerning potential statutory changes that would improve the
  operation of the department.
         (b)  On behalf of the board, the chair shall report to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the presiding officers of relevant
  legislative committees on legislative recommendations adopted by
  the board and relating to the operation of the department.
         Sec. 1001.026.  COMPENSATION.  A member of the board is
  entitled to compensation as provided by the General Appropriations
  Act. If compensation for board 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 board.
         Sec. 1001.027.  GROUNDS FOR REMOVAL. (a)  It is a ground for
  removal from the board if a board member:
               (1)  does not have at the time of appointment or
  maintain during service on the board the qualifications required by
  Section 1001.021;
               (2)  violates a prohibition provided by Section
  1001.021;
               (3)  cannot discharge the member's duties for a
  substantial part of the term for which the member is appointed
  because of illness or disability; or
               (4)  is absent from more than half of the regularly
  scheduled board meetings that the board member is eligible to
  attend during a calendar year, unless the absence is excused by
  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 knows that a
  potential ground for removal exists, the director shall notify the
  chair of the board of the ground, and the chair shall notify the
  governor and the attorney general that a potential ground for
  removal exists. If the potential ground for removal relates to the
  chair, the director shall notify another board member, who shall
  notify the governor and the attorney general that a potential
  ground for removal exists.
         Sec. 1001.028.  CONFLICT OF INTEREST. (a)  A member of the
  board shall disclose in writing to the executive director if the
  member has an interest in a matter before the board or has a
  substantial financial interest in an entity that has a direct
  interest in the matter.
         (b)  The member shall recuse himself or herself from the
  board's deliberations and actions on the matter in Subsection (a)
  and may not participate in the board's decision on the matter.
         (c)  A person has a substantial financial interest in an
  entity if the person:
               (1)  is an employee, member, director, or officer of
  the entity; or
               (2)  owns or controls, directly or indirectly, more
  than a five percent interest in the entity.
         Sec. 1001.029.  INFORMATION ON QUALIFICATIONS AND CONDUCT.
  The department shall provide to the members of the board, as often
  as necessary, information concerning the members' qualifications
  for office and their responsibilities under applicable laws
  relating to standards of conduct for state officers.
         Sec. 1001.030.  TRAINING ON DEPARTMENT AND CERTAIN LAWS
  RELATING TO DEPARTMENT. (a)  To be eligible to take office as a
  member of the board, a person appointed to the board must complete
  at least one course of a training program that complies with this
  section.
         (b)  The training program must provide information to the
  person regarding:
               (1)  this subchapter;
               (2)  the programs operated by the department;
               (3)  the role and functions of the department;
               (4)  the rules of the department with an emphasis on the
  rules that relate to disciplinary and investigatory authority;
               (5)  the current budget for the department;
               (6)  the results of the most recent formal audit of the
  department;
               (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
  board or the Texas Ethics Commission.
         (c)  A person appointed to the board is entitled to
  reimbursement for travel expenses incurred in attending the
  training program, as provided by the General Appropriations Act and
  as if the person were a member of the board.
         Sec. 1001.031.  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.
  [Sections 1001.032-1001.040 reserved for expansion]
  SUBCHAPTER C. PERSONNEL
         Sec. 1001.041.  DEPARTMENT PERSONNEL. (a)  Subject to the
  General Appropriations Act or other law, the executive director
  shall appoint deputies, assistants, and other personnel as
  necessary to carry out the powers and duties of the department under
  this code, other applicable vehicle laws of this state, and other
  laws granting jurisdiction or applicable to the department.
         (b)  A person appointed under this section must have the
  professional and administrative experience necessary to qualify
  the person for the position to which the person is appointed.
         Sec. 1001.042.  DIVISION OF RESPONSIBILITIES. The board
  shall develop and implement policies that clearly define the
  respective responsibilities of the director and the staff of the
  department.
         Sec. 1001.043.  EQUAL EMPLOYMENT OPPORTUNITY POLICY;
  REPORT. (a)  The executive director or the director's designee
  shall prepare and maintain a written policy statement to ensure
  implementation of a program of equal employment opportunity under
  which all personnel transactions are made without regard to race,
  color, disability, sex, religion, age, or national origin. The
  policy statement must include:
               (1)  personnel policies, including policies relating
  to recruitment, evaluation, selection, appointment, training, and
  promotion of personnel that are in compliance with Chapter 21,
  Labor Code;
               (2)  a comprehensive analysis of the department
  workforce that meets federal and state guidelines;
               (3)  procedures by which a determination can be made of
  significant underuse in the department workforce of all persons for
  whom federal or state guidelines encourage a more equitable
  balance; and
               (4)  reasonable methods to appropriately address those
  areas of significant underuse.
         (b)  A policy statement prepared under this section must:
               (1)  cover an annual period;
               (2)  be updated annually;
               (3)  be reviewed by the civil rights division of the
  Texas Workforce Commission for compliance with Subsection (a); and
               (4)  be filed with the governor.
         (c)  The governor shall deliver a biennial report to the
  legislature based on the information received under Subsection (b).
  The report may be made separately or as a part of other biennial
  reports made to the legislature.
         Sec. 1001.044.  QUALIFICATIONS AND STANDARDS OF CONDUCT.
  The executive director shall provide to department employees, as
  often as necessary, information regarding their:
               (1)  qualification for office or employment under this
  subtitle; and
               (2)  responsibilities under applicable laws relating
  to standards of conduct for state employees.
         Sec. 1001.045.  CAREER LADDER PROGRAM; PERFORMANCE
  EVALUATIONS. (a)  The executive director or the director's
  designee shall develop an intra-agency career ladder program. The
  program must require intra-agency posting of all nonentry level
  positions concurrently with any public posting.
         (b)  The executive director or the director's designee shall
  develop a system of annual performance evaluations. All merit pay
  for department employees must be based on the system established
  under this subsection.
  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.
         Sec. 1002.002.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING. The board may not adopt rules restricting
  advertising or competitive bidding by a person regulated by the
  department except to prohibit false, misleading, or deceptive
  practices by the person.
  CHAPTER 1003. DEPARTMENT PROCEDURES
         Sec. 1003.001.  APPLICABILITY OF CERTAIN LAWS. Except as
  specifically provided by law, the department is subject to Chapters
  2001 and 2002, Government Code.
         Sec. 1003.002.  SUMMARY PROCEDURES FOR ROUTINE MATTERS.
  (a)  The board or the department by rule may:
               (1)  create a summary procedure for routine matters;
  and
               (2)  designate department activities that otherwise
  would be subject to Chapter 2001, Government Code, as routine
  matters to be handled under the summary procedure.
         (b)  An activity may be designated as a routine matter only
  if the activity is:
               (1)  voluminous;
               (2)  repetitive;
               (3)  believed to be noncontroversial; and
               (4)  of limited interest to anyone other than persons
  immediately involved in or affected by the proposed department
  action.
         (c)  The rules may establish procedures different from those
  contained in Chapter 2001, Government Code. The procedures must
  require, for each party directly involved, notice of a proposed
  negative action not later than the fifth day before the date the
  action is proposed to be taken.
         (d)  A rule adopted by the board under this section may
  provide for the delegation of authority to take action on a routine
  matter to a salaried employee of the department designated by the
  board.
         Sec. 1003.003.  REVIEW OF ACTION ON ROUTINE MATTER. (a)  A
  person directly or indirectly affected by an action of the board or
  the department on a routine matter taken under the summary
  procedure adopted under Section 1003.002 is entitled to a review of
  the action under Chapter 2001, Government Code.
         (b)  The person must apply to the board not later than the
  60th day after the date of the action to be entitled to the review.
         (c)  The timely filing of the application for review
  immediately stays the action pending a hearing on the merits.
         (d)  The board may adopt rules relating to an application for
  review under this section and consideration of the application.
         Sec. 1003.004.  INFORMAL DISPOSITION OF CERTAIN CONTESTED
  CASES. The board or the department, as applicable, may, on written
  agreement or stipulation of each party and any intervenor,
  informally dispose of a contested case in accordance with Section
  2001.056, Government Code, notwithstanding any provision of this
  code or other law that requires a hearing before the board or the
  department, as applicable.
  CHAPTER 1004. PUBLIC ACCESS
         Sec. 1004.001.  ACCESS TO PROGRAMS AND FACILITIES. (a)  The
  department shall prepare and maintain a written plan that describes
  how a person who does not speak English may be provided reasonable
  access to the department's programs.
         (b)  The department shall comply with federal and state laws
  for program and facility accessibility.
         Sec. 1004.002.  PUBLIC COMMENT. The board and the
  department shall develop and implement policies that provide the
  public with a reasonable opportunity to appear before the board or
  the department and to speak on any issue under the jurisdiction of
  the board or the department.
         Sec. 1004.003.  PUBLIC REPRESENTATION ON ADVISORY BODY.
  (a)  At least one-half of the membership of each advisory body
  appointed by the board, other than an advisory body whose
  membership is determined by this code or by other law, must
  represent the general public.
         (b)  A public representative may not be:
               (1)  an officer, director, or employee of a business
  entity regulated by the department;
               (2)  a person required to register with the Texas
  Ethics Commission under Chapter 305, Government Code; or
               (3)  a person related within the second degree by
  affinity or consanguinity to a person described by Subdivision (1)
  or (2).
  CHAPTER 1005. STANDARDS OF CONDUCT
         Sec. 1005.001.  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.
  PART 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS
  DEPARTMENT OF TRANSPORTATION
  SUBPART A. GENERAL PROVISIONS AND ADMINISTRATION
         SECTION 8.2A.01.  Section 201.202(a), Transportation Code,
  is 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; and
               (3)  public transportation[; and
               [(4)  motor vehicle titles and registration].
         SECTION 8.2A.02.  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; and
                     (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, Transportation Code, is
  amended by adding Subdivision (1-a) and amending Subdivision (3) to
  read as follows:
               (1-a)  "Board" means the board of the Texas Department
  of Motor Vehicles.
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2E.02.  Section 502.051, Transportation Code, is
  amended to read as follows:
         Sec. 502.051.  DEPOSIT OF REGISTRATION FEES IN STATE HIGHWAY
  FUND. Except as otherwise provided by this chapter, the board
  [Texas Transportation Commission] and the department shall deposit
  all money received from registration fees in the state treasury to
  the credit of the state highway fund.
         SECTION 8.2E.03.  Section 502.052(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall prepare the designs and
  specifications of license plates and devices selected by the board
  [Texas Transportation Commission] to be used as the registration
  insignia.
         SECTION 8.2E.04.  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.
         SECTION 8.2E.05.  Section 502.1515, Transportation Code, is
  amended to read as follows:
         Sec. 502.1515.  OUTSOURCING PRODUCTION OF RENEWAL NOTICES;
  PAID ADVERTISING.  The board [commission] may authorize the
  department to enter into a contract with a private vendor to produce
  and distribute motor vehicle registration renewal notices. The
  contract may provide for the inclusion of paid advertising in the
  registration renewal notice packet.
         SECTION 8.2E.06.  Section 502.352(c), Transportation Code,
  is amended to read as follows:
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the county assessor-collector, the
  department, or the department's wire service agent, if the
  department has a wire service agent;
               (2)  paying a fee of $25 for a 72-hour permit or $50 for
  a 144-hour permit:
                     (A)  in cash;
                     (B)  by postal money order;
                     (C)  by certified check;
                     (D)  by wire transfer through the department's
  wire service agent, if any;
                     (E)  by an escrow account; or
                     (F)  where the service is provided, by a credit
  card issued by:
                           (i)  a financial institution chartered by a
  state or the United States; or
                           (ii)  a nationally recognized credit
  organization approved by the board [Texas Transportation
  Commission];
               (3)  paying a discount or service charge for a credit
  card payment or escrow account, in addition to the fee; and
               (4)  furnishing to the county assessor-collector, the
  department, or the department's wire service agent, evidence of
  financial responsibility for the vehicle that complies with
  Sections 502.153(c) and 601.168(a) and is written by an insurance
  company or surety company authorized to write motor vehicle
  liability insurance in this state.
         SECTION 8.2E.07.  Section 502.355(h), Transportation Code,
  is amended to read as follows:
         (h)  A person operating a vehicle under a permit issued under
  this section commits an offense if the person:
               (1)  transports farm products to a place of market,
  storage, or processing or a railhead or seaport that is farther from
  the place of production or point of entry, as appropriate, than the
  distance provided for in the permit; or
               (2)  follows a route other than that prescribed by the
  board [Texas Transportation Commission].
  SUBPART F. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES
         SECTION 8.2F.01.  Sections 503.001(2) and (5),
  Transportation Code, are amended to read as follows:
               (2)  "Commission" means the board of the Texas
  Department of Motor Vehicles [Texas Transportation Commission].
               (5)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART G. SPECIALTY LICENSE PLATES
         SECTION 8.2G.01.  Section 504.001(a), Transportation Code,
  is amended to read as follows:
         (a)  In this chapter:
               (1)  "Board" means the board of the Texas Department of
  Motor Vehicles [, "commission" and "director" have the meanings
  assigned by Section 201.001].
               (2)  "Department" means the Texas Department of Motor
  Vehicles.
         SECTION 8.2G.02.  Section 504.004, Transportation Code, is
  amended to read as follows:
         Sec. 504.004.  RULES AND FORMS. The board [commission] may
  adopt rules and the department may issue forms to implement and
  administer this chapter.
         SECTION 8.2G.03.  Sections 504.851(b), (c), and (d),
  Transportation Code, are amended to read as follows:
         (b)  Instead of the fees established by Section 504.101(c),
  the board [commission] by rule shall establish fees for the
  issuance or renewal of personalized license plates that are
  marketed and sold by the private vendor.  Fees must be reasonable
  and not less than the greater of:
               (1)  the amounts necessary to allow the department to
  recover all reasonable costs to the department associated with the
  evaluation of the competitive sealed proposals received by the
  department and with the implementation and enforcement of the
  contract, including direct, indirect, and administrative costs; or
               (2)  the amount established by Section 504.101(c).
         (c)  The board [commission] by rule shall establish the fees
  for the issuance or renewal of souvenir license plates, specialty
  license plates, or souvenir or specialty license plates that are
  personalized that are marketed and sold by the private
  vendor.  Fees must be reasonable and not less than the amounts
  necessary to allow the department to recover all reasonable costs
  to the department associated with the evaluation of the competitive
  sealed proposals received by the department and with the
  implementation and enforcement of the contract, including direct,
  indirect, and administrative costs.  A fee established under this
  subsection is in addition to:
               (1)  the registration fee and any optional registration
  fee prescribed by this chapter for the vehicle for which specialty
  license plates are issued;
               (2)  any additional fee prescribed by this subchapter
  for the issuance of specialty license plates for that vehicle; and
               (3)  any additional fee prescribed by this subchapter
  for the issuance of personalized license plates for that vehicle.
         (d)  At any time as necessary to comply with Subsection (b)
  or (c), the board [commission] may increase or decrease the amount
  of a fee established under the applicable subsection.
  SUBPART H. MISCELLANEOUS PROVISIONS
         SECTION 8.2H.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 I. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES
         SECTION 8.2I.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 J. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
         SECTION 8.2J.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 8.2J.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 8.2J.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 K. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR
  VEHICLES
         SECTION 8.2K.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 L. MOTOR CARRIER REGISTRATION
         SECTION 8.2L.01.  Section 643.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART M. SINGLE STATE REGISTRATION
         SECTION 8.2M.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 N. MOTOR TRANSPORTATION BROKERS
         SECTION 8.2N.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 O. FOREIGN COMMERCIAL MOTOR TRANSPORTATION
         SECTION 8.2O.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 P. PRIVILEGED PARKING
         SECTION 8.2P.01.  Section 681.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART Q. ADMINISTRATIVE ADJUDICATION OF VEHICLE PARKING
  AND STOPPING OFFENSES
         SECTION 8.2Q.01.  Section 682.008, Transportation Code, is
  amended to read as follows:
         Sec. 682.008.  PRESUMPTIONS. In an administrative
  adjudication hearing under this chapter:
               (1)  it is presumed that the registered owner of the
  motor vehicle is the person who parked or stopped the vehicle at the
  time and place of the offense charged; and
               (2)  the Texas Department of Motor Vehicles'
  [Transportation's] computer-generated record of the registered
  vehicle owner is prima facie evidence of the contents of the record.
  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 2301.002(33), Occupations Code,
  is repealed.
  SUBPART V. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY
         SECTION 8.2V.01.  Section 1(3), Article 4413(37), Revised
  Statutes, is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2V.02.  Section 2, Article 4413(37), Revised
  Statutes, is amended to read as follows:
         Sec. 2.  The Automobile Burglary and Theft Prevention
  Authority is established in the Texas Department of Motor Vehicles
  [Transportation]. The authority is not an advisory body to the
  Texas Department of Motor Vehicles [Transportation].
  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, as effective April 1, 2009, 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, as effective April 1, 2009, 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.
  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.
  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.
         SECTION 8.3I.03.  Sections 2301.005(a) and (b), Occupations
  Code, are 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 director, except that
  a reference to] the board of the Texas Department of Motor Vehicles
  [means the commission if it is related to the adoption of rules].
         (b)  A reference in law, including a rule, to the executive
  director of the Texas Motor Vehicle Commission means the executive
  director of the Texas Department of Motor Vehicles.
         SECTION 8.3I.04.  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 8.3I.05.  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 8.3I.06.  The heading to Subchapter B, Chapter 2302,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER B. BOARD [COMMISSION] POWERS AND DUTIES
         SECTION 8.3I.07.  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 8.3I.08.  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 8.3I.09. 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.
  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].
  ARTICLE 9.  RAIL 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 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 DIVISION. In addition to any
  other duty imposed on the division, the division shall:
               (1)  assure that rail 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 facilities and services in this
  state.
         SECTION 9.03.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Sections 201.6013 and 201.6014 to read as
  follows:
         Sec. 201.6013.  COORDINATION OF STATEWIDE PASSENGER RAIL
  SYSTEM. To facilitate the development and interconnectivity of
  rail systems in this state, the department shall coordinate
  activities regarding the planning, construction, operation, and
  maintenance of a statewide passenger rail system. The department
  shall coordinate with other entities involved with passenger rail
  systems, including governmental entities, private entities, and
  nonprofit corporations.
         Sec. 201.6014.  LONG-TERM PLAN FOR STATEWIDE PASSENGER RAIL
  SYSTEM. The department shall prepare and update annually a
  long-term plan for a statewide passenger rail system. Information
  contained in the plan must include:
               (1)  a description of existing and proposed passenger
  rail systems;
               (2)  information regarding the status of passenger rail
  systems under construction;
               (3)  an analysis of potential interconnectivity
  difficulties;
               (4)  ridership projections for proposed passenger rail
  projects; and
               (5)  ridership statistics for existing passenger rail
  systems.
         SECTION 9.04.  (a) Section 1(1), Chapter 350 (S.B. 1101),
  Acts of the 71st Legislature, Regular Session, 1989 (Article 6419c,
  Vernon's Texas Civil Statutes), is amended to read as follows:
               (1)  "Department" ["Commission"] means the Texas
  Department of Transportation [Railroad Commission of Texas].
         (b)  Sections 2(a) and (b), Chapter 350 (S.B. 1101), Acts of
  the 71st Legislature, Regular Session, 1989 (Article 6419c,
  Vernon's Texas Civil Statutes), are amended to read as follows:
         (a)  A railroad company that transports hazardous materials
  in or through the state shall file with the department [commission]
  a copy of each hazardous materials incident report that the company
  files with the federal Department of Transportation in accordance
  with 49 C.F.R. 171.16, not later than the 15th day after the date
  that the incident that forms the basis of the report is discovered.
         (b)  Not later than April 1 of each year, a railroad company
  that transports hazardous materials in or through the state shall
  provide to the department [commission]:
               (1)  a map depicting the location of each railroad main
  line and branch line that the company owns, leases, or operates in
  the state;
               (2)  a map delineating the geographical limits of the
  railroad company operating divisions or districts and the principal
  operating officer for the railroad company in each operating
  division or district;
               (3)  a primary and secondary telephone number for the
  railroad company dispatcher responsible for train operations in
  each operating division or district;
               (4)  a list of each type of hazardous material by hazard
  class and the quantity of the material transported over each
  railroad line owned, leased, or operated by the railroad company
  during the preceding year; and
               (5)  the name and address of the railroad company
  employee in charge of training persons to handle an incident
  related to hazardous materials.
         (c)  Section 3, Chapter 350 (S.B. 1101), Acts of the 71st
  Legislature, Regular Session, 1989 (Article 6419c, Vernon's Texas
  Civil Statutes), is amended to read as follows:
         Sec. 3.  DISTRIBUTION. (a) The department [commission]
  shall compile information submitted to the department [commission]
  under this Act for distribution to:
               (1)  local emergency management agencies located in
  jurisdictions containing reported railroad operations; and
               (2)  the metropolitan planning organizations for those
  jurisdictions.
         (b)  At least once each year the division of emergency
  management shall distribute the information compiled by the
  department [commission] to the appropriate officials for inclusion
  in local emergency management plans.
  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 traffic incidents, weather
  conditions, road construction, and alternative routes.
  ARTICLE 11. COUNTY TRAFFIC OFFICERS
         SECTION 11.01.  Section 701.006, Transportation Code, is
  amended to read as follows:
           Sec. 701.006.  [COMPLAINT; HEARING;] DISMISSAL. [(a)   If
  a county traffic officer fails to perform the officer's duty to
  enforce the law, the district engineer of the Texas Department of
  Transportation district in which the officer operates may send a
  written, signed complaint to the commissioners court.
         [(b)     On receipt of the complaint, the commissioners court
  shall hold a hearing and summon the officer to appear before it.
         [(c)     If the commissioners court determines at the hearing
  that the officer has not performed the officer's duty, the
  commissioners court shall immediately discharge the officer and
  promptly employ another officer.
         [(d)]  The commissioners court on its own initiative, or on
  recommendation of the sheriff, may dismiss a county traffic officer
  if the officer is no longer needed or if the officer's service is
  unsatisfactory.
         SECTION 11.02.  Section 701.002(b), Transportation Code, is
  repealed.
  ARTICLE 12. ISSUANCE OF GENERAL OBLIGATION BONDS FOR HIGHWAY
  IMPROVEMENT PROJECTS
         SECTION 12.01.  Subchapter A, Chapter 222, Transportation
  Code, is amended by adding Section 222.005 to read as follows:
         Sec. 222.005.  ISSUANCE OF GENERAL OBLIGATION BONDS FOR
  HIGHWAY IMPROVEMENT PROJECTS. (a) In this section:
               (1)  "Bonds" means bonds, notes, and other public
  securities.
               (2)  "Credit agreement" has the meaning assigned by
  Section 1371.001, Government Code.
               (3)  "Improvement" includes acquisition of the
  highway, construction, reconstruction, and major maintenance,
  including any necessary design, and the acquisition of
  rights-of-way.
         (b)  The commission by order or resolution may issue general
  obligation bonds for the purposes provided in this section. The
  aggregate principal amount of the bonds that are issued may not
  exceed the amount specified by Section 49-p(a), Article III, Texas
  Constitution.
         (c)  The commission may enter into credit agreements
  relating to the bonds. A credit agreement entered into under this
  section may be secured by and payable from the same sources as the
  bonds.
         (d)  The bonds shall be executed in the form, on the terms,
  and in the denominations, bear interest, and be issued in
  installments as prescribed by the commission, and must mature not
  later than 30 years after their dates of issuance, subject to any
  refundings or renewals. The bonds may be issued in multiple series
  and issues from time to time and may have the provisions the
  commission determines appropriate and in the interest of the state.
         (e)  The commission has all powers necessary or appropriate
  to carry out this section and to implement Section 49-p, Article
  III, Texas Constitution, including the powers granted to other
  bond-issuing governmental agencies and units and to nonprofit
  corporations by Chapters 1201, 1207, and 1371, Government Code.
         (f)  The bonds and the record of proceedings authorizing the
  bonds and any related credit agreements shall be submitted to the
  attorney general for approval as to their legality. If the attorney
  general finds that they will be issued in accordance with this
  section and other applicable law, the attorney general shall
  approve them, and, after payment by the purchasers of the
  obligations in accordance with the terms of sale and after
  execution and delivery of the related credit agreements, the
  obligations and related credit agreements are incontestable for any
  cause.
         (g)  Bonds may be issued for one or more of the following
  purposes:
               (1)  to pay all or part of the costs of highway
  improvement projects;
               (2)  to pay:
                     (A)  the costs of administering projects
  authorized under this section;
                     (B)  the cost or expense of the issuance of the
  bonds; or
                     (C)  all or part of a payment owed or to be owed
  under a credit agreement; and
               (3)  to provide money for deposit in the Texas
  Transportation Revolving Fund or similar revolving fund authorized
  by law, to be used for the purpose of making loans for highway
  improvement projects as provided by law.
         (h)  The proceeds from the issuance and sale of the bonds may
  not be expended or used for the purposes authorized under this
  section unless those proceeds have been appropriated by the
  legislature.
         (i)  The comptroller shall pay the principal of the bonds as
  they mature and the interest as it becomes payable and shall pay any
  cost related to the bonds that becomes due, including payments
  under credit agreements.
         SECTION 12.02.  This article does not make an appropriation.
  This article takes effect only if a specific appropriation for the
  implementation of the article is provided in a general
  appropriations act of the 81st Legislature.
         SECTION 12.03.  Except as provided by Section 12.02 of this
  article, this article takes effect immediately if this Act receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  article takes effect September 1, 2009, except as provided by
  Section 12.02 of this article.
  ARTICLE 13. METROPOLITAN PLANNING ORGANIZATIONS
         SECTION 13.01.  Section 472.034, Transportation Code, is
  amended to read as follows:
         Sec. 472.034.  STANDARDS OF CONDUCT; ETHICS POLICY.  (a)  A
  policy board member or employee of a metropolitan planning
  organization may not:
               (1)  accept or solicit any gift, favor, or service that
  might reasonably tend to influence the member or employee in the
  discharge of official duties or that the member or employee knows or
  should know is being offered with the intent to influence the
  member's or employee's official conduct;
               (2)  accept other employment or engage in a business or
  professional activity that the member or employee might reasonably
  expect would require or induce the member or employee to disclose
  confidential information acquired by reason of the official
  position;
               (3)  accept other employment or compensation that could
  reasonably be expected to impair the member's or employee's
  independence of judgment in the performance of the member's or
  employee's official duties;
               (4)  make personal investments that could reasonably be
  expected to create a substantial conflict between the member's or
  employee's private interest and the public interest; or
               (5)  intentionally or knowingly solicit, accept, or
  agree to accept any benefit for having exercised the member's or
  employee's official powers or performed the member's or employee's
  official duties in favor of another.
         (b)  An employee of a metropolitan planning organization who
  violates Subsection (a) or an ethics policy adopted under
  Subsection (c) is subject to termination of the employee's
  employment or another employment-related sanction.
  Notwithstanding this subsection, a policy board member or employee
  of a metropolitan planning organization who violates Subsection (a)
  is subject to any applicable civil or criminal penalty if the
  violation also constitutes a violation of another statute or rule.
         (c)  Each policy board shall:
               (1)  adopt bylaws establishing an ethics policy for
  employees of a metropolitan planning organization and policy board
  members consistent with the standards prescribed by Subsection (a),
  including provisions to prevent a policy board member from having a
  conflict of interest in business before the metropolitan planning
  organization; and
               (2)  distribute a copy of the ethics policy to:
                     (A)  each new employee not later than the third
  business day after the date the person begins employment with the
  agency; and
                     (B)  each new policy board member not later than
  the third business day after the date the person qualifies for
  office.
         (d)  If a person with knowledge of a violation of an ethics
  policy established under Subsection (c) that also constitutes a
  criminal offense under another law of this state reports the
  violation to an appropriate prosecuting attorney who concludes that
  there is reasonable basis to initiate an investigation, then, not
  later than the 60th day after the date a person notifies the
  prosecuting attorney under this subsection, the prosecuting
  attorney shall notify the Texas Ethics Commission of the status of
  the prosecuting attorney's investigation of the alleged violation.
  The Texas Ethics Commission shall, on the request of the
  prosecuting attorney, assist the prosecuting attorney in
  investigating the alleged violation.
         (e)  To the extent an employee of a metropolitan planning
  organization is subject to the ethics policy of another
  governmental entity and to the extent that policy conflicts with
  this section, the stricter policy prevails.
         SECTION 13.02.  Not later than January 1, 2010, each policy
  board of a metropolitan planning organization shall adopt bylaws
  establishing an ethics policy as required by Section 472.034(c),
  Transportation Code, as added by this article, and distribute a
  copy of the ethics policy to each policy board member and employee.
  ARTICLE 14. MOTOR VEHICLE ACCIDENT REPORTS
         SECTION 14.01.  Section 550.065, Transportation Code, is
  amended by amending Subsections (a), (b), and (d) and adding
  Subsections (e), (f), and (g) to read as follows:
         (a)  This section applies only to information that is held by
  the department or another governmental entity and relates to a
  motor vehicle accident reported under this chapter or Section
  601.004, including accident report information compiled under
  Section 201.805, as added by Chapter 1407 (S.B. 766), Acts of the
  80th Legislature, Regular Session, 2007.
         (b)  Except as provided by Subsection (c) or (e), the
  information is privileged and for the confidential use of:
               (1)  the department; and
               (2)  an agency of the United States, this state, or a
  local government of this state that has use for the information for
  accident prevention purposes.
         (d)  The fee for a copy of the accident report [or accident
  information] is $6 [or the actual cost of the preparation of the
  copy, whichever is less]. The copy may be certified by the
  department or the governmental entity for an additional fee of $2.
  The department or the governmental entity may issue a certification
  that no report or information is on file for a fee of $6.
         (e)  In addition to the information required to be released
  under Subsection (c), the department may release:
               (1)  information relating to motor vehicle accidents
  that the department compiles under Section 201.805, as added by
  Chapter 1407 (S.B. 766), Acts of the 80th Legislature, Regular
  Session, 2007; or
               (2)  a vehicle identification number and specific
  accident information relating to that vehicle.
         (f)  The department:
               (1)  may not release under Subsection (e) information
  that:
                     (A)  is personal information, as defined by
  Section 730.003; or
                     (B)  would allow a person to satisfy the
  requirements of Subsection (c)(4) for the release of information
  for a specific motor vehicle accident; and
               (2)  shall withhold or redact the following items of
  information:
                     (A)  the first, middle, and last name of any
  person listed in an accident report, including a vehicle driver,
  occupant, owner, or lessee, a bicyclist, a pedestrian, or a
  property owner;
                     (B)  the number of any driver's license,
  commercial driver's license, or personal identification
  certificate issued to any person listed in an accident report;
                     (C)  the date of birth, other than the year, of any
  person listed in an accident report;
                     (D)  the address, other than zip code, and
  telephone number of any person listed in an accident report;
                     (E)  the license plate number of any vehicle
  listed in an accident report;
                     (F)  the date of any accident, other than the
  year;
                     (G)  the name of any insurance company listed as a
  provider of financial responsibility for a vehicle listed in an
  accident report;
                     (H)  the number of any insurance policy issued by
  an insurance company listed as a provider of financial
  responsibility;
                     (I)  the date the peace officer who investigated
  the accident was notified of the accident;
                     (J)  the date the investigating peace officer
  arrived at the accident site;
                     (K)  the date the investigating officer's report
  was prepared;
                     (L)  the badge number or identification number of
  the investigating officer;
                     (M)  the date on which any person who died as a
  result of the accident died;
                     (N)  the date of any commercial motor vehicle
  report; and
                     (O)  the place where any person injured or killed
  in an accident was taken and the person or entity that provided the
  transportation.
         (g)  The amount that may be charged for information provided
  under Subsection (e) shall be calculated in the manner specified by
  Chapter 552, Government Code, for public information provided by a
  governmental body under that chapter.
  ARTICLE 16. TEXAS TRANSPORTATION REVOLVING FUND
         SECTION 16.01.  Chapter 222, Transportation Code, is amended
  by adding Subchapter F to read as follows:
  SUBCHAPTER F. TEXAS TRANSPORTATION REVOLVING FUND
         Sec. 222.131.  DEFINITIONS. In this subchapter:
               (1)  "Bonds" means bonds, notes, and other public
  securities.
               (2)  "Credit agreement" has the meaning assigned by
  Section 1371.001, Government Code.
               (3)  "Fund" means the Texas Transportation Revolving
  Fund.
               (4)  "Fund revenue bonds" means bonds issued under
  Section 222.135.
               (5)  "Highway improvement project" includes
  acquisition of the highway, construction, reconstruction, and
  major maintenance, including any necessary design, and the
  acquisition of rights-of-way.
               (6)  "Transit provider" has the meaning assigned by
  Section 370.003.
               (7)  "Transportation project" means a tolled or
  nontolled highway improvement project.
         Sec. 222.132.  CREATION OF FUND. The Texas Transportation
  Revolving Fund is created as a fund held in the Texas Treasury
  Safekeeping Trust Company.
         Sec. 222.133.  ADMINISTRATION OF FUND. (a)  The commission,
  through the department, shall manage, invest, use, administer, and
  provide financial assistance from the fund as provided by this
  subchapter.
         (b)  The commission may create within the fund one or more
  accounts or subaccounts as determined appropriate and necessary by
  the commission.
         (c)  The commission shall prepare and file annually with the
  governor, the lieutenant governor, and the Legislative Budget Board
  a report providing information on the operation of the fund,
  including:
               (1)  the amounts and sources of money deposited in the
  fund during the year;
               (2)  investments and returns on investments of money in
  the fund;
               (3)  loans made from the fund;
               (4)  other financial assistance provided from the fund;
               (5)  the status of any defaults on repayment of loans or
  other financial assistance provided from the fund; and
               (6)  the details of any transportation project for
  which financial assistance is received from the fund, including the
  identity of any highway directly affected by the project, and the
  degree to which the project is designed to reduce congestion,
  improve traffic safety, and enhance connectivity.
         Sec. 222.134.  SOURCES OF MONEY DEPOSITED IN FUND. The
  commission may deposit in the fund money derived from any source
  available to the commission, including:
               (1)  if appropriated by the legislature for that
  purpose:
                     (A)  the proceeds of bonds issued under Section
  222.003;
                     (B)  the proceeds of bonds authorized by Section
  49-p, Article III, Texas Constitution, if the law providing for the
  issuance of the bonds does not prohibit the deposit of the proceeds
  in the fund;
                     (C)  money provided by the commission from the
  state highway fund;
                     (D)  money provided by the commission from the
  Texas Mobility Fund that is in excess of the money required to be on
  deposit in the Texas Mobility Fund by the proceedings authorizing
  Texas Mobility Fund bonds and credit agreements; and
                     (E)  other direct appropriations;
               (2)  repayments of principal and interest on loans made
  under Section 222.137;
               (3)  the proceeds from the sale of loans under Section
  222.140;
               (4)  the proceeds from the sale of fund revenue bonds;
  and
               (5)  gifts and grants.
         Sec. 222.135.  FUND REVENUE BONDS. (a)  The commission may
  issue, sell, and deliver fund revenue bonds for the purpose of
  providing money for the fund.
         (b)  Fund revenue bonds are special obligations of the
  commission payable from the repayment of loans from the fund and
  other money on deposit in the fund as the commission may designate.
         (c)  Fund revenue bonds do not constitute a debt of the state
  or a pledge of the faith and credit of the state.
         (d)  The commission by order or resolution may issue fund
  revenue bonds in the name and on behalf of the state and the
  department and may enter into credit agreements related to the
  bonds. The bonds may be issued in multiple series and issues from
  time to time and may be issued on the terms and with the provisions
  the commission determines appropriate and in the interests of the
  state.
         (e)  The commission has all powers necessary or appropriate
  to carry out this section, including the powers granted to other
  bond-issuing governmental agencies and units and to nonprofit
  corporations by Chapters 1201, 1207, and 1371, Government Code.
         (f)  Before the issuance of fund revenue bonds or credit
  agreements, the commission shall submit the record of proceedings
  of the commission authorizing the issuance, execution, and delivery
  of the bonds or credit agreement and any contract providing revenue
  or security to pay the bonds or credit agreement to the attorney
  general for review. If the attorney general finds that the
  proceedings authorizing a bond or credit agreement and any bonds
  authorized in the proceedings conform to the requirements of the
  Texas Constitution and this subchapter, the attorney general shall
  approve the proceedings and the bonds and deliver to the
  comptroller for registration a copy of the attorney general's legal
  opinion stating that approval and the record of proceedings. After
  approval, the bonds or credit agreement may be executed and
  delivered, exchanged, or refinanced from time to time in accordance
  with those authorizing proceedings.
         (g)  If the proceedings and any bonds authorized in the
  proceedings are approved by the attorney general and registered by
  the comptroller as provided above, the bonds or credit agreement,
  as applicable, or a contract providing revenue or security included
  in or executed and delivered according to the authorizing
  proceedings are incontestable in a court or other forum and are
  valid, binding, and enforceable according to their terms.
         (h)  The proceeds from the sale of fund revenue bonds may be
  used to finance other funds or accounts relating to the bonds or
  credit agreement, including a debt service reserve fund, and to pay
  the costs of issuance. All remaining proceeds received from the
  sale of the bonds shall be deposited in the fund and invested and
  used as provided by this subchapter.
         Sec. 222.136.  INVESTMENT OF MONEY IN THE FUND. (a)  Money
  in the fund may be invested as provided by Chapter 2256, Government
  Code, except that the proceeds of bonds deposited in the fund under
  Section 222.134 shall be subject to any limitations contained in
  the documents authorizing the issuance of the bonds.
         (b)  Income received from the investment of money in the fund
  shall be deposited in the fund, subject to requirements that may be
  imposed by the proceedings authorizing bonds issued to provide
  money for deposit in the fund that are necessary to protect the
  tax-exempt status of interest payable on the bonds in accordance
  with applicable law of the United States concerning federal income
  taxation of interest on the bonds. Investment income shall be
  deposited in an account or subaccount in the fund as determined by
  the department.
         Sec. 222.137.  USES OF MONEY IN THE FUND. (a)  Except as
  otherwise provided by this section, the commission may use money
  held in the fund to provide financial assistance to a public entity,
  including the department, for the costs of a transportation project
  by:
               (1)  making loans, including through the purchase of
  obligations of the public entity;
               (2)  providing liquidity or credit enhancement,
  including through the agreement to loan to or purchase bonds,
  notes, or other obligations from a public entity;
               (3)  serving as a reserve fund established in
  connection with debt financing by the public entity;
               (4)  providing capitalized interest for debt financing
  by the public entity; or
               (5)  providing a guarantee of the payment of the costs
  of operations and maintenance of a transportation project.
         (b)  The proceeds of bonds authorized by Section 49-p,
  Article III, Texas Constitution, or issued under Section 222.003
  may only be used to provide financial assistance for highway
  improvement projects, subject to any limitations provided by law.
         (c)  Money from the state highway fund may only be used for
  the purposes for which revenues are dedicated under Section 7-a,
  Article VIII, Texas Constitution.
         (d)  Money from the Texas Mobility Fund may only be used to
  provide financial assistance for state highway improvement
  projects, publicly owned toll roads, and public transportation
  projects, whether on or off of the state highway system, subject to
  any limitations provided by law.
         (e)  Money in the fund may be used to pay debt service on fund
  revenue bonds.
         (f)  The commission may require the payment of reasonable
  fees and other amounts by a public entity for all forms of financial
  assistance provided under this section.
         (g)  The department shall monitor the use of financial
  assistance provided to a public entity to ensure the financial
  assistance is used for purposes authorized by law and may audit the
  books and records of a public entity for this purpose.
         Sec. 222.138.  BORROWING FROM THE FUND BY PUBLIC ENTITY.
  (a)  A public entity, including a municipality, county, district,
  authority, agency, department, board, or commission, that is
  authorized by law to construct, maintain, or finance a
  transportation project may borrow money from the fund, including by
  direct loan or other financial assistance from the fund, and may
  enter into any agreement relating to receiving financial assistance
  from the fund.
         (b)  Money received by a public entity under this subchapter
  must be segregated from other funds under the control of the public
  entity and may only be used for purposes authorized by this
  subchapter.
         (c)  To provide for the repayment of a loan or other
  financial assistance, a public entity may:
               (1)  pledge revenues or income from any available
  source;
               (2)  pledge, levy, and collect any taxes, subject to
  any constitutional limitation; or
               (3)  pledge any combination of revenues, income, and
  taxes.
         (d)  This section is wholly sufficient authority for a public
  entity to borrow or otherwise obtain financial assistance from the
  fund as authorized by this subchapter and to pledge revenues,
  income, or taxes, or any combination of revenues, income, and
  taxes, to the repayment of a loan or other financial assistance.
         Sec. 222.139.  REPAYMENT TERMS; DEPOSIT OF REPAYMENTS.
  (a)  For financial assistance that must be repaid, the commission
  shall determine the terms and conditions of the repayment,
  including the interest rates to be charged.
         (b)  The commission may require the entity receiving
  financial assistance that must be repaid to make charges, levy and
  collect taxes, pledge revenues, or otherwise take such action as
  may be necessary to provide for money in an amount sufficient for
  repayment according to the terms agreed on at the time the financial
  assistance is provided.
         (c)  For a tolled highway improvement project, the
  commission, in lieu of requiring the repayment of financial
  assistance and any interest thereon, may require that revenues from
  the project be shared between the entity and the department, and the
  entity and the department may enter into an agreement specifying
  the terms and conditions of the revenue sharing.
         (d)  The department shall deposit in the fund all amounts
  received from repayment of the financial assistance or as a share of
  revenues from a tolled highway improvement project.
         Sec. 222.140.  SALE OF LOANS. (a)  As used in this section,
  "loan" includes any financial assistance that must be repaid or any
  portion of such assistance.
         (b)  The commission may sell any loans made from money in the
  fund and shall deposit the proceeds of the sale in the fund.
         (c)  For any loans to be sold under this section, the
  commission may submit to the attorney general for review and
  approval the related financial assistance agreement, which shall,
  for the purposes of Chapter 1202, Government Code, be considered to
  be a public security, along with the record of proceedings of the
  borrowing entity relating to the agreement. If the attorney
  general approves the agreement, it shall be incontestable in a
  court or other forum and is valid, binding, and enforceable
  according to its terms as provided by Chapter 1202, Government
  Code.
         (d)  The commission must sell the loans using a competitive
  bidding process and at the price and under the terms and conditions
  that it determines to be reasonable.
         (e)  As part of the sales agreement with the purchaser of a
  loan, the commission may agree to perform the functions required to
  enforce the conditions and requirements stated in the loans,
  including the payment of debt service by the borrowing entity.
         (f)  The commission may exercise any powers necessary to
  carry out the authority granted by this section, including the
  authority to contract with any person to accomplish the purposes of
  this section.
         (g)  The commission shall not be liable for the repayment of,
  and may not repay, any loan sold under this section.
         Sec. 222.141.  WAIVER OF SOVEREIGN IMMUNITY. A public
  entity receiving financial assistance under this subchapter and the
  department may agree to waive sovereign immunity to suit for the
  purpose of adjudicating a claim to enforce any of their obligations
  brought by a party for breach of the terms of the financial
  assistance agreement.
         Sec. 222.142.  IMPLEMENTATION BY RULE. (a)  The commission
  shall adopt rules to implement this subchapter, including rules:
               (1)  establishing eligibility and prioritization
  criteria for entities applying for financial assistance from the
  fund and for transportation projects that may receive financial
  assistance from the fund;
               (2)  specifying the method for setting the terms and
  conditions for providing financial assistance from the fund and for
  the repayment of financial assistance from the fund; and
               (3)  establishing procedures for the sale of loans
  originated from amounts on deposit in the fund.
         (b)  The eligibility and prioritization criteria described
  in Subsection (a)(1) shall provide that financial assistance made
  available for the delivery of a transportation project by the
  department may not be in a larger amount or on more favorable terms
  than the financial assistance requested and previously offered for
  the delivery of that transportation project by a public entity, if
  any.
         (c)  The commission shall appoint a rules advisory committee
  to advise the department and the commission on the development of
  the commission's initial rules required by this section. The
  committee must include one or more members representing a local
  toll project entity, as defined in Section 228.0111. Chapter 2110,
  Government Code, does not apply to the committee. This subsection
  expires on the date the commission adopts initial rules under this
  section.
         SECTION 16.02.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution. If this Act does not receive the vote necessary for
  immediate effect, this article takes effect September 1, 2009.
  ARTICLE 17. USE OF STATE HIGHWAY FUND IN CONNECTION WITH CERTAIN
  TOLL FACILITIES
         SECTION 17.01.  Section 222.001, Transportation Code, is
  amended to read as follows:
         Sec. 222.001.  USE OF STATE HIGHWAY FUND. (a)  Money that is
  required to be used for public roadways by the Texas Constitution or
  federal law and that is deposited in the state treasury to the
  credit of the state highway fund, including money deposited to the
  credit of the state highway fund under Title 23, United States Code,
  may be used only:
               (1)  to improve the state highway system;
               (2)  to mitigate adverse environmental effects that
  result directly from construction or maintenance of a state highway
  by the department; or
               (3)  by the Department of Public Safety to police the
  state highway system and to administer state laws relating to
  traffic and safety on public roads.
         (b)  Notwithstanding Section 222.103, the department may not
  pledge or otherwise encumber money deposited in the state highway
  fund to:
               (1)  guarantee a loan obtained by a public or private
  entity for costs associated with a toll facility of the public or
  private entity; or
               (2)  insure bonds issued by a public or private entity
  for costs associated with a toll facility of the public or private
  entity.
         SECTION 17.02.  Section 222.001(b), Transportation Code, as
  added by this article, applies only to an agreement to pledge or
  otherwise encumber money in the state highway fund that is entered
  into on or after the effective date of this Act, except that that
  section does not apply to an agreement to pledge or otherwise
  encumber money in the state highway fund that is associated with the
  following projects, regardless of whether the agreement is
  finalized on or after the effective date of this Act:
               (1)  the State Highway 161 project in Dallas County;
               (2)  the Southwest Parkway (State Highway 121) in
  Tarrant County from Interstate Highway 30 to Dirks Road/Altamesa
  Boulevard and the Chisholm Trail project from Dirks Road/Altamesa
  Boulevard to U.S. Highway 67 in the city of Cleburne;
               (3)  a project associated with the highway designated
  as the Trinity Parkway in the city of Dallas;
               (4)  the Grand Parkway project (State Highway 99);
               (5)  the Hidalgo Loop project in Hidalgo County from
  U.S. Highway 83 near the Pharr-Reynosa International Bridge to the
  U.S. Highway 83 Expressway in Penitas to U.S. Highway 281 north of
  Edinburg to U.S. Highway 83 west of Farm-to-Market Road 1423 to U.S.
  Highway 83 near the Pharr-Reynosa International Bridge;
               (6)  the U.S. Highway 290 project from east of U.S.
  Highway 183 to east of Farm-to-Market Road 734 in Travis County;
               (7)  the State Highway 71 East project from Riverside
  Drive east to east of State Highway 130 and including the
  interchange at State Highway 71 East/U.S. Highway 183 South in
  Travis County;
               (8)  the U.S. Highway 183 South project from Springdale
  Road south to State Highway 71 East in Travis County;
               (9)  the Loop 1 added capacity project, comprised of
  the addition of a managed lane on Loop 1 from Parmer Lane to State
  Highway 45 South in Travis County;
               (10)  any transaction related to the acquisition by a
  regional mobility authority, a regional tollway authority, or a
  county acting under Chapter 284 of a toll project of the department
  all or a portion of which was existing and in operation prior to
  September 1, 2009;
               (11)  any transaction related to the assumption by a
  regional mobility authority, a regional tollway authority, or a
  county acting under Chapter 284 of the operations of a toll project
  of the department all or a portion of which was existing and in
  operation prior to September 1, 2009;
               (12)  the Loop 49 project from U.S. Highway 69 north of
  Lindale to State Highway 110 in Smith County; or
               (13)  the U.S. Highway 281 project in Bexar County from
  Loop 1604 to the Comal County line and including five direct
  connectors at the Loop 1604/U.S. Highway 281 interchange.
         SECTION 17.03.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution. If this Act does not receive the vote necessary for
  immediate effect, this article takes effect September 1, 2009.
  ARTICLE 18. USED AUTOMOTIVE PARTS RECYCLERS
         SECTION 18.01.  Section 2302.001(6), Occupations Code, is
  amended to read as follows:
               (6)  "Salvage vehicle agent" means a person who
  acquires, sells, or otherwise deals in nonrepairable or salvage
  motor vehicles [or used parts] in this state as directed by the
  salvage vehicle dealer under whose license the person operates.
  The term does not include a person who:
                     (A)  is a licensed salvage vehicle dealer or a
  licensed used automotive parts recycler;
                     (B)  is a partner, owner, or officer of a business
  entity that holds a salvage vehicle dealer license or a used
  automotive parts recycler license;
                     (C)  is an employee of a licensed salvage vehicle
  dealer or a licensed used automotive parts recycler; or
                     (D)  only transports salvage motor vehicles for a
  licensed salvage vehicle dealer or a licensed used automotive parts
  recycler.
         SECTION 18.02.  Section 2302.006(b), Occupations Code, is
  amended to read as follows:
         (b)  This chapter applies to a transaction in which a motor
  vehicle:
               (1)  is sold, transferred, released, or delivered to a
  metal recycler for the purpose of reuse or resale as a motor vehicle
  [or as a source of used parts]; and
               (2)  is used for that purpose.
         SECTION 18.03.  Subchapter A, Chapter 2302, Occupations
  Code, is amended by adding Section 2302.008 to read as follows:
         Sec. 2302.008.  APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE
  PARTS RECYCLERS. This chapter does not apply to a used automotive
  parts recycler licensed under Chapter 2309.
         SECTION 18.04.  Section 2302.103(b), Occupations Code, is
  amended to read as follows:
         (b)  An applicant may apply for a salvage vehicle dealer
  license with an endorsement in one or more of the following
  classifications:
               (1)  new automobile dealer;
               (2)  used automobile dealer;
               (3)  [used vehicle parts dealer;
               [(4)]  salvage pool operator;
               (4) [(5)]  salvage vehicle broker; or
               (5) [(6)]  salvage vehicle rebuilder.
         SECTION 18.05.  Section 2302.107(d), Occupations Code, is
  amended to read as follows:
         (d)  A salvage vehicle agent may acquire, sell, or otherwise
  deal in, nonrepairable or salvage motor vehicles [or used parts] as
  directed by the authorizing dealer.
         SECTION 18.06.  Section 2302.202, Occupations Code, is
  amended to read as follows:
         Sec. 2302.202.  RECORDS OF PURCHASES. A salvage vehicle
  dealer shall maintain a record of each salvage motor vehicle [and
  each used part] purchased or sold by the dealer.
         SECTION 18.07.  Subtitle A, Title 14, Occupations Code, is
  amended by adding Chapter 2309 to read as follows:
  CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2309.001.  SHORT TITLE. This chapter may be cited as
  the Texas Used Automotive Parts Recycling Act.
         Sec. 2309.002.  DEFINITIONS. In this chapter:
               (1)  "Insurance company," "metal recycler," "motor
  vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle
  title," "salvage motor vehicle," "salvage vehicle title," and
  "salvage vehicle dealer" have the meanings assigned by Section
  501.091, Transportation Code.
               (2)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (3)  "Department" means the Texas Department of
  Licensing and Regulation.
               (4)  "Executive director" means the executive director
  of the department.
               (5)  "Used automotive part" has the meaning assigned to
  "used part" by Section 501.091, Transportation Code.
               (6)  "Used automotive parts recycler" means a person
  licensed under this chapter to operate a used automotive parts
  recycling business.
               (7)  "Used automotive parts recycling" means the
  dismantling and reuse or resale of used automotive parts and the
  safe disposal of salvage motor vehicles or nonrepairable motor
  vehicles, including the resale of those vehicles.
         Sec. 2309.003.  APPLICABILITY OF CHAPTER TO METAL RECYCLERS.
  (a)  Except as provided by Subsection (b), this chapter does not
  apply to a transaction to which a metal recycler is a party.
         (b)  This chapter applies to a transaction in which a motor
  vehicle:
               (1)  is sold, transferred, released, or delivered to a
  metal recycler as a source of used automotive parts; and
               (2)  is used as a source of used automotive parts.
         Sec. 2309.004.  APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE
  DEALERS. (a)  Except as provided by Subsection (b), this chapter
  does not apply to a transaction in which a salvage vehicle dealer is
  a party.
         (b)  This chapter applies to a salvage vehicle dealer who
  deals in used automotive parts as more than an incidental part of
  the salvage vehicle dealer's primary business.
         Sec. 2309.005.  APPLICABILITY OF CHAPTER TO INSURANCE
  COMPANIES. This chapter does not apply to an insurance company.
  [Sections 2309.006-2309.050 reserved for expansion]
  SUBCHAPTER B. ADVISORY BOARD
         Sec. 2309.051.  USED AUTOMOTIVE PARTS RECYCLING ADVISORY
  BOARD. (a)  The advisory board consists of five members
  representing the used automotive parts industry in this state
  appointed by the presiding officer of the commission with the
  approval of the commission.
         (b)  The advisory board shall include members who represent
  used automotive parts businesses owned by domestic entities, as
  defined by Section 1.002, Business Organizations Code.
         (c)  The advisory board shall include one member who
  represents a used automotive parts business owned by a foreign
  entity, as defined by Section 1.002, Business Organizations Code.
         (d)  Appointments to the advisory board shall be made without
  regard to the race, color, disability, sex, religion, age, or
  national origin of the appointee.
         Sec. 2309.052.  TERMS; VACANCIES. (a)  Advisory board
  members serve terms of six years, with the terms of one or two
  members expiring on February 1 of each odd-numbered year.
         (b)  A member may not serve more than two full consecutive
  terms.
         (c)  If a vacancy occurs during a term, the presiding officer