(3) On page 4, lines 15-17, strike "The chief financial officer must be a certified public accountant who is licensed and in good standing in this state." and substitute "The chief financial officer must:

(1) have at least one master's or doctoral degree; and

(2) be a certified public accountant who is licensed and in good standing in this state."

(4) On page 4, strike lines 18-24 and substitute the following:

(b) The chief financial officer shall oversee the department's financial activities, including:

(1) managing department debt;

(2) exploring new mechanisms to finance transportation projects;

(3) budgeting for pass-through toll projects and department contracts; and

(4) overseeing the project delivery office established under Section 201.1076.

(5) On page 5, strike lines 8-16.

(6) On page 8, line 24, strike "Section 201.401(a), Transportation Code, is" and substitute "(a) Sections 201.401(a) and (b), Transportation Code, are".

(7) On page 9, between lines 14 and 15, insert the following:

(b) A person may not act as general, outside, or retained counsel to the department if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the department. A person who acts as general counsel to the department must be licensed as an attorney in this state.

(b) The changes in law made by this Act to Section 201.401, Transportation Code, in the qualifications of the general counsel of the Texas Department of Transportation do not affect the entitlement of a person serving in that position immediately before the effective date of this Act to continue to carry out the position's functions for the remainder of the position's term. The changes in law apply only to a general counsel appointed on or after the effective date of this Act. This Act does not prohibit a person who is serving as the general counsel on the effective date of this Act from being reappointed to that position if the person has the qualifications required for the position under Section 201.401, Transportation Code, as amended by this Act.

(8) Add the following appropriately numbered SECTIONS and renumber the remaining SECTIONS of the bill accordingly:

SECTION ____. Subchapter A, Chapter 201, Transportation Code, is amended by adding Section 201.004 to read as follows:

Sec. 201.004. CONSIDERATION OF OUTSIDE APPLICANTS. In making an appointment under this chapter, the commission shall consider applicants from outside the department.

SECTION ____. Subchapter C, Chapter 201, Transportation Code, is amended by adding Section 201.1076 to read as follows:

Sec. 201.1076. PROJECT DELIVERY OFFICE. The chief financial officer shall establish and oversee a project delivery office within the department to coordinate the activities of other department offices and personnel to accomplish the commission's financial objectives and fulfill the appointing authority's financial reporting requirements.

SECTION ____. (a) Section 201.108, Transportation Code, is amended to read as follows:

Sec. 201.108. INTERNAL AUDITOR. (a) The commission shall appoint an internal auditor for the department. The auditor must:

(1) have at least one master's or doctoral degree;

(2) be a certified public accountant who is licensed and in good standing in this state;

(3) be a certified internal auditor; and

(4) have demonstrated experience in preparing financial statements and reports.

(b) The auditor shall:

(1) report directly to the commission on the conduct of department affairs;

(2) administer and oversee compliance functions of the department; and

(3) facilitate preparation of financial statements or reports required by law to be filed by the commission.

(b) The changes in law made by this Act to Section 201.108, Transportation Code, in the qualifications of the internal auditor of the Texas Department of Transportation do not affect the entitlement of a person serving in that position immediately before the effective date of this Act to continue to carry out the position's functions for the remainder of the position's term. The changes in law apply only to an internal auditor appointed on or after the effective date of this Act. This Act does not prohibit a person who is serving as the internal auditor on the effective date of this Act from being reappointed to that position if the person has the qualifications required for the position under Section 201.108, Transportation Code, as amended by this Act.