By: Pickett H.B. No. 2589
A BILL TO BE ENTITLED
AN ACT
relating to transportation planning and the creation and membership
of planning organizations and funding allocations for
transportation projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 201.105(a) and (b), Transportation Code are
amended to read as follows:
Sec. 201.105. DEPARTMENT DISTRICTS. (a) The commission
shall divide the state into [not more than] 25 districts for the
purpose of the performance of the department's duties.
(b) The [In determining a district's boundaries, the]
commission shall align the district boundaries along the boundaries
of the councils of government and consider all costs and benefits,
including highway activity in determining [and] the number of
employees required for the districts [proposed district].
SECTION 2. Subchapter H, Chapter 201, Transportation Code,
is amended by adding Section 201.6001 to read as follows:
Sec. 201.6001. DEFINITIONS. (a) In this Subchapter:
(1) "Local government" means a county or municipality.
(2) "Planning organization" means a metropolitan
planning organization, a rural planning organization, or the
department district.
(3) "Project cost" means the total cost of a
transportation project including all costs associated with the
following:
(A) planning;
(B) design;
(C) environmental assessment;
(D) right-of-way acquisition;
(E) construction;
(F) operations;
(G) maintenance;
(H) overruns; and
(I) change orders.
(4) "Region" means the area of the metropolitan
planning organization or the area outside the boundaries of the
metropolitan planning organization that make up the remainder of
the council of government.
(5) "Rural planning organization" means a planning
organization created in accordance with Section 201.6002.
(6) "Transportation official" means officials from
other state agencies and political subdivisions that have
responsibility for the following modes of transportation:
(A) aviation;
(B) high-speed railroads;
(C) highways;
(D) toll roads;
(E) mass transportation;
(F) railroads; and
(G) water traffic
(7) "Transportation project" means:
(A) the planning, right-of-way acquisition,
expansion, improvement, addition, routine maintenance, contracted
routine maintenance, or contract maintenance of a:
(i) bridge
(ii) highway;
(iii) toll road or toll road system; or
(iv) railroad.
(B) projects which enhance the safety of a
roadway to the traveling public;
(C) an air quality improvement initiative;
(D) an enhancement project in accordance with 23
U.S.C. 133; or
(E) mass transportation.
SECTION 3. Subchapter H, Chapter 201, Transportation Code,
is amended by adding Section 201.6002 to read as follows:
Sec. 201.6002. RURAL PLANNING ORGANIZATIONS. (a) To carry
out the transportation planning process required by this section, a
rural planning organization may be created that covers all of the
area that is within the boundaries of a council of government and
outside the boundaries of a metropolitan planning organization if
the units of local government that together represent at least 75
percent of the affected population agree to the creation of the
organization.
(b) A rural planning organization is governed by a board of
directors composed of local elected officials and the district
engineer of the department district.
(c) In order for a rural planning organization to be
eligible to receive funding from the state for transportation
projects under Section 201.6012, Transportation Code, the make up
of the voting members of the board must include at least 50 percent
elected officials, which are elected within the boundaries of the
rural planning organization.
(d) As soon as practicable after a rural planning
organization is created, the organization shall send notice of its
creation to the commission.
(e) The department may use money in the state highway fund
to fund the operations of a rural planning organization subject to
the limitation set forth in Section 201.6012(h).
(f) A rural planning organization shall develop
transportation plans and programs for its service area in
accordance with Section 201.601.
(g) A rural planning organization may provide to the
commission recommendations concerning the selection of
transportation projects, systems, or programs to be undertaken
within the boundaries of the rural planning organization.
(h) In this section "elected official" is defined as mayor,
county judge, city councilmember, county commissioner, state
representative, or state senator.
SECTION 4. Section 201.601, Transportation Code, is amended
to read as follows:
Sec. 201.601. STATEWIDE TRANSPORTATION PROGRAM AND BUDGET
[PLAN]. (a) On September first of every odd numbered year
following the legislative session, the Chief Financial Officer
shall issue a cash flow forecast for each method and category of
funding which covers a period to include the next ten years. The
forecast shall identify all sources of funding available for
transportation projects including bond proceeds. The first two
years of the forecast shall be based on the appropriation of funds
in the general appropriations act for the department.
(b) The Commission shall utilize the cash forecast to
allocate funding to the department districts in accordance with
Section 201.6012. The funds shall be deposited into a subaccount
within the State Highway Fund. The balance of the subaccount shall
be carried forward from year to year for the benefit of the region.
(c) The planning organization shall develop a ten year
transportation plan utilizing the funding allocated to the region.
The first four years of the plan shall be developed in order to
fulfill the transportation improvement plan requirements of 23
U.S.C. 135. The department shall compile the region's project
selections to develop the statewide transportation plan in
accordance with 23 U.S.C. 135. If there is a Metropolitan Planning
Organization within the boundary of the district, it shall select
projects and order them in priority. In the area outside the
boundaries of the Metropolitan Planning Organization's the rural
planning organization shall select projects and order them in
priority. If the units of local government have not created a rural
planning organization in accordance with Section 201.6002, the
district shall select projects with the input from county, city and
transportation officials and order them in priority. If the
district selects the projects, the district shall submit them to
the commission for final approval.
(d) The process for developing the plans and programs must
provide for consideration of all modes of transportation and must
be continuing, cooperative, and comprehensive to the degree
appropriate, based on the complexity of the transportation problems
to be addressed.
(e) A planning organization may also prepare and update
periodically a long-range transportation plan for its service area.
The first ten years of the long-range plan shall be identical to the
plan developed in Subsection (c). Before approving a long-range
transportation plan, a planning organization shall provide to
residents within its boundaries, affected public agencies, and
other interested parties a reasonable opportunity to comment on the
long-range transportation plan. A planning organization shall make
each of its long-range transportation plans readily available for
public review and shall deliver each plan to the commission at the
times and in the manner established by the commission.
[(a) The department shall develop a statewide
transportation plan that contains all modes of transportation,
including:
(1) highways and turnpikes;
(2) aviation;
(3) mass transportation;
(4) railroads and high-speed railroads; and
(5) water traffic.]
(f[b]) In developing the plan, the planning organization
[department] shall seek opinions and assistance from
transportation officials [other state agencies and political
subdivisions that have responsibility for the modes of
transportation listed by Subsection (a)].
(g) As appropriate, the department and [such] a planning
organization [an agency or political subdivision shall] may enter
into a memorandum of understanding relating to the planning of
transportation services.
(h) The department shall review the plans of the planning
organization to ensure they are in compliance with the requirements
of 23 U.S.C. 135, and provide assistance to the planning
organization to correct deficiencies.
(i[c]) The plan shall be [must include a component that is
not] financially constrained and identify [identifies] all
transportation projects and projects for any other mode of
transportation not included in Section 201.6001(7). [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)].
(j) The commission shall adopt rules allowing the regions to
move projects forward or delay projects in the event that there are
additional or fewer funds available than identified in the cash
forecast in subsection (a). Adjustments to the plan should not be
made more than semiannually, unless there are substantial increases
or decreases in available funding.
(k[d]) The plan shall include a component, published
annually, that describes the evaluation of transportation
improvements based on performance measures, such as indices
measuring delay reductions or travel time improvements. The
planning organization [department] shall consider the performance
measures in selecting transportation improvements.
(l) The department shall use the planning organizations'
project lists to create the Statewide Transportation Program and
Budget. The Statewide Transportation Program and Budget shall
include at least the:
(1) department's operating budget,
(2) official cash forecast from Subsection (a),
(3) regions' allocations of funds,
(4) projects selected by the planning organization in
subsection (c), and
(5) work plan, as required by Section 201.621.
(m) The Statewide Transportation Program and Budget shall
be complete and adopted by June 30 of every even numbered year. The
commission shall adopt rules to create a process for planning
organizations to amend the plan from July 1 of every even numbered
year until August 31 of the following odd numbered year. Amendments
to the plan may only reorder projects identified in the same region
subject to Section 201.601(j).
(n) The commission may adopt rules which allow a region to
loan funds to another region at the lending region's discretion in
order to avoid the lapsing of federal appropriations authority.
The rules must allow the lending region to have a senior position
with regards to any future allocated funds of the borrowing region.
The lending region may not charge interest on funds borrowed from
another region that exceed the current bond rate of outstanding
State Highway Fund bonds or in the absence of outstanding debt the
prevailing market rate for comparable municipal debt. The
commission shall post this rate for all districts. A lending region
shall not be penalized in their performance measures if they
successfully negotiate a loan with another region.
(o) The Statewide Transportation Program and Budget shall
be organized first by region, then by mode of transportation
followed by the year of the project. The summary tables of the
report shall summarize the statewide project cost by mode and then
by year. The report shall be made available online in accordance
with Section 201.6013.
SECTION 5. Subchapter H, Chapter 201, Transportation Code,
is amended by adding Sections 201.6012, 201.6013, and 201.6014 to
read as follows:
Sec. 201.6012 TRANSPORTION ALLOCATION FUNDING FORMULA. (a)
The Commission shall adopt rules creating funding formulas for
transportation projects. In developing the formulas the commission
shall include the input of planning organizations, transportation
officials and local government officials.
(b) All funds received by the department for highways, toll
roads, or toll road systems which provide the state or the
department with discretion shall be allocated by formula to each
region which is based on performance measures and includes at least
the following criteria:
(1) center lane miles,
(2) level of congestion,
(3) percentage of population below federal poverty
level,
(4) population,
(5) safety, and
(5) vehicle miles traveled.
(c) The Commission shall allocate to the regions funding for
the project cost of all transportation projects. The commission
shall adopt various formulas for the different types of
transportation projects. The commission shall adopt rules for all
transportation formulas.
(d) The funds allocated to the region in this section may be
used to:
(1) fund the project cost, provide toll equity, or
make payments under a pass-through toll agreement, for
transportation projects selected by the planning organization;
(2) pay debt service;
(3) repay monies borrowed from another region; or
(4) fund planning organizations' operations in
accordance with Sections 201.6012(f), 201.6012(g), or 201.6012(h).
(e) Revenue from Sections 228.005, 228.0055, and 228.006
shall be allocated in accordance with Transportation Code 228,
Subchapter B. The funds from Chapter 228 shall not be considered
revenue allocated by the formula in Subsection (a).
(f) The allocation of funds shall be encumbered in an amount
equal to the engineer's estimate of the project cost and reduced by
the actual project cost at the time payments associated with the
project are paid.
(g) If a region elects to utilize bond proceeds to advance a
project, the allocation of funds shall be encumbered by the annual
cost of debt service and reduced when debt service payments are
paid.
(h) A metropolitan planning organization operating in a
Metropolitan Management Area as defined by 23 U.S.C 134(k) may
utilize the allocated funds to pay for the operations cost of the
planning organization. The amount that may be allocated to pay for
operations of the planning organization may not exceed the lesser
of $10 million or ten percent of the regions total funds.
(i) A metropolitan planning organization as defined by 23
U.S.C 134(d) may utilize the allocated funds to pay for the
operations cost of the planning organization. The amount that may
be allocated to pay for operations of the planning organization may
not exceed the lesser of $3 million or ten percent of the regions
total funds.
(j) A rural planning organization created under 201.6002
may utilize the allocated funds to pay for the operations cost of
the planning organization. The amount that may be allocated to pay
for operations of the planning organization may not exceed the
lesser of $1 million or ten percent of the regions total funds.
Sec. 201.6013 COMMISSION EMERGENCY AND ECONOMIC
DEVELOPMENT FUNDS (a) Notwithstanding Section 201.601(b) the
commission may choose to set aside an amount of funds not to exceed
the lesser of ten percent of the total funds allocated to the
districts or $250 million annually for the purpose of addressing
emergencies or economic development opportunities that require
transportation infrastructure. The funds may be carried forward
from year to year and may not accumulate to exceed an amount equal
to $1 billion.
(b) If the commission elects to set aside an amount of funds
allowed in subsection (a) then the total amount of funds shall be
reduced by the amount prior to the allocation of funds by the
formula.
(c) The funds shall be encumbered in an amount equal to the
engineer's estimate of the project cost and reduced by the actual
project cost at the time payments associated with the project are
paid.
(d) If the commission elects to utilize bond proceeds to
advance a project, the funds shall be encumbered by the annual cost
of debt service and reduced when debt service payments are paid.
(e) The funds identified in subsection (a) may only be used
to pay cost overruns and change orders of projects selected under
this section.
(f) The commission may only use the funds from subsection
(a) to make payments for projects funded in accordance with Section
222.104 or to provide toll equity if the commission selects the
projects using a competitive project selection process.
Sec. 201.6014 TRANSPORTATION TRANSPARENCY PROGRAM (a) The
department shall develop an interactive web based system for the
tracking of regional allocations and projects. The planning
organizations shall be granted access to the system through a
secure site to input projects and the associated project costs.
(b) The system shall provide the planning organization with
their allocation of funding for the region and the federal and state
requirements for each source of funding.
(c) The department shall assign a project number to the
project that correlates to the region in which the project is
located.
(d) The department shall develop standardized reports to
assist the district engineers and executive staff in tracking the
efficiency of the project development and to ensure the prudent use
of funds by the region.
(e) The system shall be linked to a publicly accessible
website which enables the tracking of project development and the
expenditure of funds. Each project shall contain a map identifying
the location of the project and a report that identifies the
project, a general scope of work, the allocation of funds
associated with the project, and a current report of expenditures.
(f) The web site shall include mapping of projects by
district to allow easy identification of projects within each
district.
SECTION 6. Subchapter H, Chapter 201, Transportation Code,
is amended by adding Sections 201.621, 201.622, 201.623 to read as
follows:
Sec. 201.621. WORK PLAN. (a) Upon completion of the
ten-year transportation plan in Section 201.601(c), the department
shall utilize the projects listed to develop a proposed ten-year
business work plan. The work plan shall be adopted no later than
August 31 of each even numbered year and include:
(1) a list of projects for which planning, permitting,
design, right-of-way acquisition, or construction work will be
conducted during the period;
(2) the state fiscal quarter in which key milestones
for each project will be completed, including environmental
clearance, completion of final engineering plans, completion of
right-of-way acquisition, letting to contract, and completion of
construction; and
(3) the funding allocated or estimated in each state
fiscal year for each category of work for each project.
(b) In addition to the plan required by Subsection (a) and
other provisions of this chapter, on or before August 31 of each
odd-numbered year, the department shall finalize a project plan for
the time period of September 1 of that odd numbered year until
August 31 of the following odd numbered year. The plan must include
a project schedule with funding for each phase of each project, a
consultant acquisition plan with a schedule for contract
selections, a right-of-way acquisition plan, and a letting plan.
(c) The department shall develop a set of performance
measures for the plan described in Subsection (b) intended to
measure:
(1) the execution of the work program;
(2) the efficiency and cost-effectiveness of its
business practices;
(3) the preservation of the system investment;
(4) the addition of new capacity to the system;
(5) safety initiatives; and
(6) utilization of minority, disadvantaged, and small
businesses.
(d) At a minimum, the performance measures adopted under
Subsection (c) must include:
(1) the percentage of projects for which environmental
clearance is obtained on or before the planned date;
(2) the number of engineering contracts or work orders
executed in contrast with the number planned;
(3) the average time between selection and execution
of a contract for engineering services;
(4) the number of right-of-way parcels acquired and
the number scheduled to be acquired;
(5) the percentage of projects for which right-of-way
acquisition is completed on or before the planned date;
(6) the percentage of parcels acquired through
negotiation;
(7) the percentage of negotiated parcels acquired for
an amount that does not exceed 120 percent of the initial department
offer;
(8) the total amount spent for right-of-way as a
percentage of the original estimated amount;
(9) the number of construction contracts entered into
in contrast with the number planned;
(10) the percentage of construction contracts
executed on or before the planned letting date;
(11) the total amount spent for construction contracts
as a percentage of the original estimated amount;
(12) for all construction contracts completed during
the state fiscal year, the percentage completed within 20 percent
of the original contract time;
(13) for all construction contracts completed during
the state fiscal year, the percentage completed within 10 percent
of the original contract price;
(14) construction contract adjustments as a
percentage of original contract price;
(15) the percentage of bridge structures on the state
highway system that have a rating of good or excellent;
(16) the percentage of bridge structures on the state
highway system that have a posted weight limitation;
(17) the number of bridge repair contracts let in
contrast with the number planned;
(18) the number of bridge replacement contracts let in
contrast with the number planned;
(19) the percentage of lane miles on the state highway
system that have a pavement condition rating of excellent or good;
(20) the number of lane miles on the state highway
system that were resurfaced in contrast with the number planned;
(21) the number of lane miles of capacity improvement
projects let in contrast with the number planned;
(22) of the federal funds subject to forfeiture at the
end of the state fiscal year, the percentage that was committed by
the department;
(23) the amounts of cash receipts and disbursements in
contrast with the forecasted amounts;
(24) the amount spent in connection with contracts
with minority business enterprises as a percentage of the amount
spent on all contracts;
(25) the number of construction contracts let in
contrast with the number let in previous state fiscal years;
(26) the peak hour travel congestion in the seven
largest metropolitan areas in contrast with previous state fiscal
years;
(27) the number of vehicle miles traveled in contrast
with previous state fiscal years; and
(28) the number of lane miles added as a percentage of
the number of previously existing lane miles.
(e) The department shall consult with the legislative
oversight committee on transportation in developing the
performance measures under Subsection (c).
Sec. 201.622. 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
201.621(b) 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 201.621(c), statewide and by
department district, and a status report on each major project
under development.
Sec. 201.623. LEGISLATIVE OVERSIGHT COMMITTEE ON
TRANSPORTATION. (a) In this section, "committee" means the
legislative oversight committee on transportation.
(b) The committee is composed of 10 members as follows:
(1) the chair of the Senate Finance Committee;
(2) the chair of the House Appropriations Committee;
(3) the chair of the Senate Transportation and
Homeland Security Committee;
(4) the chair of the House Transportation Committee;
(5) three additional members of the senate appointed
by the lieutenant governor; and
(6) three additional members of the house of
representatives appointed by the speaker of the house of
representatives.
(c) The committee shall monitor:
(1) the implementation of:
(i) the Statewide Transportation Program
and Budget,
(ii) the transportation allocation funding
formula's,
(2) the transportation transparency program;
(3) the development of performance measures under
Section 201.621(c); and
(4) other tasks assigned by the lieutenant governor
and the speaker of the house of representatives.
(d) This section and Section 201.621(e) expire August 31,
2013.
SECTION 7. Subchapter F, Chapter 201, Transportation Code,
is amended by adding Section 201.407 to read as follows:
Sec. 201.407. INSPECTOR GENERAL. (a) The commission shall
appoint an inspector general who reports to the commission.
(b) The inspector general shall:
(1) audit the department's financial condition and the
efficiency of its business practices;
(2) evaluate the efficiency of the department's
administrative practices and performance, including business plan
performance measures, relationships with metropolitan planning
organizations, performance of department districts and offices,
and the need for standardization;
(3) identify the need and opportunities for reductions
in staff and the need for a better or differently skilled workforce;
(4) study the implementation of and improvements to a
commitment-based budget or business plan based on outcomes;
(5) identify ways to streamline the environmental
approval process;
(6) evaluate compliance with applicable laws and
legislative intent; and
(7) evaluate the efficient use of available funding,
personnel, equipment, and office space.
SECTION 8. Section 222.034(b), Transportation Code is
amended to read as follows:
(b) The commission may vary from the distribution procedure
provided by Subsection (a) if it issues a ruling or minute order
identifying the variance and providing a particular justification
for the variance. If the commission intends to vary from the
distribution procedure it shall allocate the funding in accordance
with a formula adopted in Section 201.6012.
SECTION 9. Subchapter D, Chapter 472, Transportation Code,
is amended by adding Section 472.034 to read as follows:
Sec. 472.034 ELIGIBILITY FOR STATE ALLOCATION OF FUNDING;
BOARD MEMBERSHIP (a) In order for a metropolitan planning
organization to be eligible to receive funding from the state for
transportation projects under Section 201.6012, Transportation
Code, the make up of the voting members of the board must include at
least 50 percent elected officials, which are elected within the
boundaries of the metropolitan planning organization.
(b) A metropolitan planning organization which does not
meet the requirements set forth in subsection (a) may redesignate
the board in compliance with the redesignation procedures set forth
in 23 U.S.C. 134, in order to become eligible to receive an
allocation of funding from the state under Section 201.6012,
Transportation Code.
(c) In this section "elected offical" is defined as mayor,
county judge, city councilmember, county commissioner, state
representative, or state senator.
SECTION 10. The commission shall appoint an Inspector
General to carry out the duties outlined in Section 201.407 no later
than December 1, 2009.
SECTION 11. This act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 30, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2009.