Texas 2009 81st Regular

Texas House Bill HB300 House Committee Report / Bill

Filed 02/01/2025

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                    81R29158 E
 By: Isett, Pickett, Harper-Brown H.B. No. 300
 Substitute the following for H.B. No. 300:
 By: Pickett C.S.H.B. No. 300


 A BILL TO BE ENTITLED
 AN ACT
 relating to the continuation and functions of the Texas Department
 of Transportation, including the governance of the department and
 the transfer of certain functions of the department to the Texas
 Department of Motor Vehicles and the office of the governor;
 providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. GENERAL COMMISSION AND DEPARTMENT PROVISIONS
 SECTION 1.01. Sections 201.051(a), (b), (f), (g), (h), and
 (j), Transportation Code, are amended to read as follows:
 (a) The Texas Transportation Commission consists of five
 members, of whom:
 (1) three are appointed by the governor with the
 advice and consent of the senate;
 (2)  one is appointed by the governor with the advice
 and consent of the senate, selected from a list of individuals
 provided by the speaker of the house of representatives; and
 (3) one is appointed by the lieutenant governor.
 (b) The members shall be appointed to reflect the diverse
 geographic regions and population groups of this state. One member
 appointed by the governor under Subsection (a)(1) must reside in a
 rural area.
 (f) An officer, employee, or paid consultant of a Texas
 trade association in the field of road construction or maintenance,
 aviation, or outdoor advertising is not eligible for appointment as
 [or a Texas trade association of automobile dealers may not be] a
 member of the commission.
 (g) The spouse of an officer, manager, or paid consultant of
 a Texas trade association in the field of road construction or
 maintenance, aviation, or outdoor advertising is not eligible for
 appointment as [or a Texas association of automobile dealers may
 not be] a member of the commission.
 (h) A person required to register as a lobbyist under
 Chapter 305, Government Code, because of the person's activities
 for compensation on behalf of a profession related to the operation
 of the department is not eligible for appointment [may not serve] as
 a member of the commission.
 (j) In this section, "Texas trade association" means a
 [nonprofit,] cooperative[,] and voluntarily joined statewide
 association of business or professional competitors in this state
 designed to assist its members and its industry or profession in
 dealing with mutual business or professional problems and in
 promoting their common interest.
 SECTION 1.02. Section 201.053(a), Transportation Code, is
 amended to read as follows:
 (a) The governor [periodically] shall designate one
 commissioner as the chair of the commission, who shall serve as
 presiding officer of the commission.
 SECTION 1.03. Section 201.056, Transportation Code, is
 amended to read as follows:
 Sec. 201.056. COMPENSATION. A member of the commission is
 entitled to compensation as provided by the General Appropriations
 Act. [If compensation for members is not provided by that Act, each
 member is entitled to reimbursement for actual and necessary
 expenses incurred in performing functions as a member of the
 commission.]
 SECTION 1.04. Section 201.057(a), Transportation Code, is
 amended to read as follows:
 (a) It is a ground for removal from the commission if a
 commissioner:
 (1) does not have at the time of taking office
 [appointment] or maintain during service on the commission the
 qualifications required by Section 201.051;
 (2) violates a prohibition provided by Section
 201.051;
 (3) cannot discharge the commissioner's duties for a
 substantial part of the term for which the commissioner is
 appointed because of illness or disability; or
 (4) is absent from more than half of the regularly
 scheduled commission meetings that the commissioner is eligible to
 attend during a calendar year, unless the absence is excused by
 majority vote of the commission.
 SECTION 1.05. Section 201.058, Transportation Code, is
 amended to read as follows:
 Sec. 201.058. INFORMATION ON QUALIFICATIONS AND CONDUCT.
 The department shall provide to the members of the commission, as
 often as necessary, information concerning the members'
 qualifications for office [under Subchapter B] and their
 responsibilities under applicable laws relating to standards of
 conduct for state officers.
 SECTION 1.06. Section 201.105, Transportation Code, is
 amended by amending Subsections (a) and (b) and adding Subsections
 (h) and (i) to read as follows:
 (a) The commission shall divide the state into [not more
 than 25] districts for the purpose of the performance of the
 department's duties.
 (b) Except as provided in Subsection (h) [In determining a
 district's boundaries], the commission shall align the districts'
 boundaries along the boundaries of regional planning commissions
 created under Chapter 391, Local Government Code, and shall
 consider all costs and benefits, including highway activity in
 determining [and] the number of employees required for the proposed
 districts [district].
 (h)  In establishing district boundaries under Subsection
 (b), the commission may vary from the boundaries of a regional
 planning commission created under Chapter 391, Local Government
 Code, to the extent it determines necessary to avoid:
 (1)  significant adverse economic impact on local
 communities caused by the closing of one or more existing
 department offices;
 (2)  significant cost inefficiencies caused by the
 realignment of existing district boundaries; or
 (3)  significant disruptions to the existing workforce
 of one or more districts.
 (i)  If the commission varies from the boundaries of a
 regional planning commission as authorized by Subsection (h), the
 commission shall send a report explaining the variances to:
 (1) the Legislative Budget Board;
 (2) the governor;
 (3) the chair of the House Transportation Committee;
 (4)  the chair of the Senate Transportation and
 Homeland Security Committee;
 (5) the chair of the Senate Finance Committee; and
 (6) the chair of the House Appropriations Committee.
 SECTION 1.07. Subchapter C, Chapter 201, Transportation
 Code, is amended by adding Sections 201.117 and 201.118 to read as
 follows:
 Sec. 201.117.  TECHNOLOGICAL SOLUTIONS. The commission
 shall implement a policy requiring the department to use
 appropriate technological solutions to improve the department's
 ability to perform its functions. The policy must ensure that the
 public is able to interact with the department on the Internet.
 Sec. 201.118.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
 RESOLUTION PROCEDURES. (a) The commission shall develop and
 implement a policy to encourage the use of:
 (1)  negotiated rulemaking procedures under Chapter
 2008, Government Code, for the adoption of department rules; and
 (2)  appropriate alternative dispute resolution
 procedures under Chapter 2009, Government Code, to assist in the
 resolution of internal and external disputes under the department's
 jurisdiction.
 (b)  The department's procedures relating to alternative
 dispute resolution must conform, to the extent possible, to any
 model guidelines issued by the State Office of Administrative
 Hearings for the use of alternative dispute resolution by state
 agencies.
 (c) The commission shall designate a trained person to:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  serve as a resource for any training needed to
 implement the procedures for negotiated rulemaking or alternative
 dispute resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures, as implemented by the department.
 SECTION 1.08. Sections 201.202(a) and (c), Transportation
 Code, are amended to read as follows:
 (a) The commission shall organize the department into
 divisions to accomplish the department's functions and the duties
 assigned to it, including divisions for:
 (1) aviation;
 (2) highways and roads;
 (3) public transportation; and
 (4) rail transportation [motor vehicle titles and
 registration].
 (c) A [In appointing a] person designated by the commission
 as the department's chief financial officer must report directly to
 the commission [to supervise a function previously performed by the
 former State Department of Highways and Public Transportation,
 Texas Department of Aviation, or Texas Turnpike Authority,
 preference shall be given to a person employed in a similar position
 in that former agency].
 SECTION 1.09. Section 201.204, Transportation Code, is
 amended to read as follows:
 Sec. 201.204. SUNSET PROVISION. The Texas Department of
 Transportation is subject to Chapter 325, Government Code (Texas
 Sunset Act). Unless continued in existence as provided by that
 chapter, the department is abolished September 1, 2013 [2009].
 SECTION 1.10. Subchapter D, Chapter 201, Transportation
 Code, is amended by adding Sections 201.210, 201.211, 201.212, and
 201.213 to read as follows:
 Sec. 201.210.  COMPLIANCE CERTIFICATION. (a) Not later
 than September 1 of each year, each member of the commission, the
 director, and the department's chief financial officer shall
 certify in writing that the commission member, the director, or the
 officer, as applicable:
 (1)  is responsible for establishing and maintaining
 the department's internal controls;
 (2) has evaluated the effectiveness of those controls;
 (3)  has presented conclusions about the effectiveness
 of the department's internal controls and applicable reporting
 requirements; and
 (4)  has effectively complied with all applicable
 legislative mandates.
 (b)  The members of the commission, the director, and the
 department's chief financial officer shall submit the
 certifications required by Subsection (a) to the governor, the
 lieutenant governor, the speaker of the house of representatives,
 the chair of the standing committee of each house of the legislature
 with primary jurisdiction over transportation matters, and the
 transportation legislative oversight committee created under
 Chapter 205.
 (c)  The transportation legislative oversight committee
 shall recommend to the 82nd Legislature appropriate penalties for
 failure to submit the certifications required by Subsection (a).
 This subsection expires January 1, 2012.
 Sec. 201.211.  LEGISLATIVE LOBBYING. (a) In addition to the
 prohibition in Section 556.006, Government Code, a member of the
 commission or a department employee may not use money under the
 department's control or engage in an activity to influence the
 passage or defeat of legislation.
 (b)  A violation of Subsection (a) is grounds for dismissal
 of an employee.
 (c)  This section does not prohibit a member of the
 commission or department employee from using state resources to:
 (1)  provide public information or information
 responsive to a request; or
 (2)  communicate with officers and employees of the
 federal government in pursuit of federal appropriations.
 Sec. 201.212.  ETHICS AFFIRMATION AND HOTLINE.  (a)  A
 department employee shall annually affirm the employee's adherence
 to the ethics policy adopted under Section 572.051(c), Government
 Code.
 (b)  The department shall establish and operate a telephone
 line to be known as the Ethics Hotline that enables a person to call
 the hotline number, anonymously or not anonymously, to report an
 alleged violation of the ethics policy adopted under Section
 572.051(c), Government Code.
 Sec. 201.213.  LEGISLATIVE APPROPRIATIONS REQUEST.
 Department staff shall deliver the department's legislative
 appropriations request to the commission in an open meeting not
 later than the 30th day before the commission adopts the
 legislative appropriations request for submission to the
 Legislative Budget Board.
 SECTION 1.11. Section 201.301(a), Transportation Code, is
 amended to read as follows:
 (a) The commission shall elect an executive director for the
 department. [The director must be a registered professional
 engineer in this state and experienced and skilled in
 transportation planning, development, construction, and
 maintenance.]
 SECTION 1.12. Section 201.404(b), Transportation Code, is
 amended to read as follows:
 (b) The director or the director's designee shall develop a
 system of annual performance evaluations that are based on
 documented employee performance. All merit pay for department
 employees must be based on the system established under this
 subsection. If an annual performance evaluation indicates that an
 employee's performance is unsatisfactory, the commission and
 director shall consider whether the employee should be terminated.
 The annual performance evaluations developed under this subsection
 must include the evaluation of an employee's:
 (1) professionalism;
 (2) diligence; and
 (3)  responsiveness to directives and requests from the
 commission and the legislature.
 SECTION 1.13. Subchapter H, Chapter 201, Transportation
 Code, is amended by adding Section 201.6041 to read as follows:
 Sec. 201.6041.  DELEGATION OF ENVIRONMENTAL REVIEW TO LOCAL
 TOLL PROJECT ENTITY. (a) In this section, "local toll project
 entity" means:
 (1) a county under Chapter 284;
 (2) a regional tollway authority under Chapter 366; or
 (3) a regional mobility authority under Chapter 370.
 (b)  To the extent permitted by law, the department shall, on
 request by a local toll project entity, delegate to the entity all
 responsibility for obtaining environmental review required for a
 project to be developed and constructed by the entity. If authority
 is delegated under this section:
 (1)  the local toll project entity's environmental
 documents, environmental studies, and public involvement
 activities must comply with state procedures;
 (2)  the local toll project entity must provide the
 environmental documentation to the department; and
 (3)  the environmental documents must meet the approval
 of the United States Department of Transportation, Federal Highway
 Administration, if the project requires the approval of that
 agency.
 SECTION 1.14. Section 201.802, Transportation Code, is
 amended to read as follows:
 Sec. 201.802. PUBLIC ACCESS TO COMMISSION [AND TO
 DEPARTMENT PROGRAMS]. [(a)] The commission shall develop and
 implement policies that provide the public with a reasonable
 opportunity to appear before the commission and speak on any issue
 under the jurisdiction of the department [commission].
 [(b)     The director shall prepare and maintain a written plan
 that describes the manner in which a person who does not speak
 English or who has a physical, mental, or developmental disability
 is provided reasonable access to the department's programs.
 [(c)     The department shall comply with each applicable law of
 the United States or this state that relates to program or facility
 accessibility.]
 SECTION 1.15. Subchapter K, Chapter 201, Transportation
 Code, is amended by adding Section 201.910 to read as follows:
 Sec. 201.910.  MEMORIAL MARKERS FOR CERTAIN PEACE OFFICERS
 AND SPECIAL INVESTIGATORS KILLED IN LINE OF DUTY. (a) The
 commission by rule shall allow the placement, along state highway
 right-of-way, of privately funded memorials honoring peace
 officers and special investigators who were killed in the line of
 duty and were not troopers of the Department of Public Safety.
 (b)  The rules adopted under Subsection (a) must be
 substantially identical to commission rules relating to the
 placement of privately funded memorials honoring Department of
 Public Safety troopers killed in the line of duty.
 (c) In this section:
 (1)  "Peace officer" has the meaning assigned by
 Article 2.12, Code of Criminal Procedure.
 (2)  "Special investigator" has the meaning assigned by
 Article 2.122, Code of Criminal Procedure.
 SECTION 1.16. Section 201.0545, Transportation Code, is
 repealed.
 SECTION 1.17. (a) Subtitle A, Title 6, Transportation
 Code, is amended by adding Chapter 205 to read as follows:
 CHAPTER 205. TRANSPORTATION LEGISLATIVE OVERSIGHT COMMITTEE
 Sec. 205.001.  DEFINITION. In this chapter, "committee"
 means the Transportation Legislative Oversight Committee.
 Sec. 205.002.  ESTABLISHMENT; COMPOSITION.  (a)  The
 Transportation Legislative Oversight Committee is established to
 provide objective research, analysis, and recommendations on the
 operation and needs of the state transportation system.
 (b) The committee is composed of six members as follows:
 (1)  the chair of the Senate Committee on
 Transportation and Homeland Security;
 (2)  the chair of the House Committee on
 Transportation;
 (3)  two members of the senate appointed by the
 lieutenant governor; and
 (4)  two members of the house of representatives
 appointed by the speaker of the house of representatives.
 (c)  An appointed member of the committee serves at the
 pleasure of the appointing official.
 Sec. 205.003.  PRESIDING OFFICER; TERM. (a)  The lieutenant
 governor and the speaker of the house of representatives shall
 appoint the presiding officer of the committee on an alternating
 basis.
 (b)  The presiding officer of the committee serves a two-year
 term that expires February 1 of each odd-numbered year.
 Sec. 205.004. POWERS AND DUTIES. (a) The committee shall:
 (1)  monitor the department's planning, programming,
 and funding of the state transportation system;
 (2)  conduct an in-depth analysis of the state
 transportation system that includes:
 (A)  an assessment of the cost-effectiveness of
 the use of state, local, and private funds in the transportation
 system;
 (B)  an identification of critical problems in the
 transportation system, such as funding constraints; and
 (C)  a determination of the long-range needs of
 the transportation system;
 (3) recommend to the legislature:
 (A)  strategies to solve the problems identified
 under Subdivision (2)(B); and
 (B)  policy priorities to address the long-range
 needs determined under Subdivision (2)(C); and
 (4)  advise and assist the legislature in developing
 plans, programs, and proposed legislation to improve the
 effectiveness of the state transportation system.
 (b)  The committee has all other powers and duties provided
 to a special committee by:
 (1) Subchapter B, Chapter 301, Government Code;
 (2)  the rules of the senate and the house of
 representatives; and
 (3)  policies of the senate and house committees on
 administration.
 (c)  Notwithstanding any other provision of this chapter,
 the committee may not recommend specific projects or recommend
 funding for specific projects.
 Sec. 205.005.  REVIEW OF RESEARCH PROGRAM.  (a)  The
 department shall present the department's entire research program
 to the committee for review and comment before adopting or
 implementing the program.
 (b)  The committee shall review and comment on the
 department's research program, including each of the individual
 research projects and activities.  The review of a proposed
 research project must take into consideration the purpose of the
 project, the proposed start and ending dates for the project, and
 the cost of the project.
 (c)  The department shall provide to the committee quarterly
 updates and an annual summary on the progress of the department's
 research projects and activities.
 (d)  The committee may request the results of any of the
 department's research projects, including draft reports from the
 department or the contracted entities performing the research.
 (e)  A university transportation research program in this
 state may:
 (1)  perform transportation research projects
 requested by the committee; and
 (2)  initiate and propose transportation research
 projects to the committee.
 (f)  The committee may request assistance from a university
 transportation research program in this state in conducting
 transportation research and in reviewing, evaluating, and
 comparing elements of the state transportation system to the
 transportation systems in other states to set needed benchmarks.
 Sec. 205.006.  CONTRACT WITH CONSULTING FIRM.  (a)  The
 committee may contract with an outside management consulting firm
 that is independent of the department to make recommendations
 regarding an effective and efficient organizational structure for
 the department, such as recommending appropriate performance
 measurements and staffing levels for each major function of the
 department including comparisons to best practices, after review
 and analysis under Section 205.007.
 (b)  In performing its functions, the consulting firm shall
 coordinate with the Legislative Budget Board, the state auditor's
 office, and the department to minimize the duplication of efforts
 and to perform cost effectively and in a timely manner.
 (c) The committee shall:
 (1)  oversee the implementation of the recommendations
 under this section with the goal of making the department more
 efficient, transparent, and accountable, including through
 reducing staff and streamlining processes; and
 (2)  assess the department's progress in implementing
 the recommendations under this section and report on the progress
 to the Senate Finance Committee and House Appropriations Committee
 for consideration in establishing the department's budget as part
 of the appropriations process.
 Sec. 205.007.  FUNCTIONS OF CONSULTING FIRM.  The primary
 functions of a management consulting firm the committee contracts
 with under Section 205.006 include:
 (1)  evaluating the department's financial condition
 and business practices;
 (2)  evaluating the department's administrative
 practices and performance, including statewide transportation
 planning, the department's relationship with metropolitan planning
 organizations, as defined by Section 472.031, the performance of
 the department's district and central offices, and the need for
 standardization of the department's operations across the state;
 (3)  evaluating the current guidelines of metropolitan
 planning organizations and all other transportation entities
 within the state involved with project delivery or transportation
 policy by identifying duplicative practices and providing
 recommendations for better efficiency and transparency;
 (4)  identifying ways to streamline all processes and
 procedures of policy implementations of the department, including
 the environmental process;
 (5)  examining and evaluating the use and benefits of
 performance-based maintenance contracting by the department;
 (6)  examining and presenting recommendations on how to
 maximize the department's use of multimodal solutions;
 (7)  analyzing the department's compliance with
 applicable laws and legislative intent;
 (8)  examining the efficient use of the department's
 available funding, personnel, equipment, and office space;
 (9)  evaluating the establishment in statute of a state
 pavement quality goal of having 85 percent of state roads in good or
 better condition; and
 (10)  considering significantly expanding the use of
 the private sector for planning, design, and delivery of projects
 and a commitment to excellence in project and program management.
 Sec. 205.008.  MEETINGS. The committee shall meet at the
 call of the presiding officer.
 Sec. 205.009.  STAFF; AUTHORITY TO CONTRACT. The committee
 may hire staff or may contract with universities or other suitable
 entities to assist the committee in carrying out the committee's
 duties. Funding to support the operation of the committee shall be
 provided from funds appropriated to the department.
 Sec. 205.010.  REPORT. Not later than January 1 of each
 odd-numbered year, the committee shall submit to the legislature a
 report that contains the recommendations described by Section
 205.004(a)(3).
 (b) The speaker of the house of representatives and the
 lieutenant governor shall appoint members to the Transportation
 Legislative Oversight Committee under Chapter 205, Transportation
 Code, as added by this section, not later than January 1, 2010.
 (c) Notwithstanding Section 205.003, Transportation Code,
 as added by this section, the lieutenant governor, not later than
 January 15, 2010, shall appoint a presiding officer for the
 Transportation Legislative Oversight Committee. The presiding
 officer appointed by the lieutenant governor under this section
 serves a one-year term that begins on February 1, 2010, and ends on
 February 1, 2011.
 (d) On the effective date of this Act:
 (1) all employees of the Texas Department of
 Transportation who primarily perform duties related to the
 department's government and public affairs research section become
 employees of the Transportation Legislative Oversight Committee
 under Chapter 205, Transportation Code, as added by this section;
 and
 (2) all funds appropriated by the legislature to the
 Texas Department of Transportation for purposes related to the
 department's government and public affairs research section are
 transferred to the Transportation Legislative Oversight Committee
 under Chapter 205, Transportation Code, as added by this section.
 SECTION 1.18. Subchapter Z, Chapter 311, Transportation
 Code, is amended by adding Section 311.905 to read as follows:
 Sec. 311.905.  NOTICE OF TRANSPORTATION USER'S FEE BY
 MUNICIPALITY.  (a)  A municipality that imposes a fee on the user of
 a benefited property equal to the prorated annual cost of the
 transportation system owned by the municipality that can reasonably
 be attributed to the benefited property must provide notice to the
 department and the user of the fee.
 (b)  The notice to the department shall be given to the
 executive director by any commercially acceptable form of business
 communication. The notice to the user required under Subsection
 (a) is adequate if the fee amount is stated on monthly billing
 statements to the user for metered utility service provided by the
 municipality to the user.
 ARTICLE 2. TRANSPORTATION PLANNING AND PROJECT DEVELOPMENT PROCESS
 SECTION 2.01. Section 201.601, Transportation Code, is
 amended to read as follows:
 Sec. 201.601. STATEWIDE TRANSPORTATION PROGRAM AND BUDGET
 [PLAN]. [(a)] The department shall develop a statewide
 transportation program and budget under Subchapter H-1 [plan that
 contains all modes of transportation, including:
 [(1) highways and turnpikes;
 [(2) aviation;
 [(3) mass transportation;
 [(4) railroads and high-speed railroads; and
 [(5) water traffic].
 [(b)     In developing the plan, the department shall seek
 opinions and assistance from other state agencies and political
 subdivisions that have responsibility for the modes of
 transportation listed by Subsection (a). As appropriate, the
 department and such an agency or political subdivision shall enter
 into a memorandum of understanding relating to the planning of
 transportation services.
 [(c)     The plan must include a component that is not
 financially constrained and identifies transportation improvements
 designed to relieve congestion. In developing this component of
 the plan, the department shall seek opinions and assistance from
 officials who have local responsibility for modes of transportation
 listed in Subsection (a).
 [(d)     The plan shall include a component, published
 annually, that describes the evaluation of transportation
 improvements based on performance measures, such as indices
 measuring delay reductions or travel time improvements. The
 department shall consider the performance measures in selecting
 transportation improvements.]
 SECTION 2.02. Chapter 201, Transportation Code, is amended
 by adding Subchapter H-1 to read as follows:
 SUBCHAPTER H-1.  STATEWIDE TRANSPORTATION PLANNING AND FUNDING
 ALLOCATION
 Sec. 201.651. DEFINITIONS. In this subchapter:
 (1) "Planning organization" means:
 (A) a metropolitan planning organization;
 (B) a rural planning organization; or
 (C)  for an area that is not in the boundaries of a
 metropolitan planning organization, the department district that
 serves the area.
 (2)  "Project cost" means the total cost of a
 transportation project, including all costs associated with:
 (A) planning;
 (B) design;
 (C) environmental assessment;
 (D) right-of-way acquisition;
 (E) construction;
 (F) operations;
 (G) maintenance;
 (H) overruns; and
 (I) change orders.
 (3)  "Region" means the area for which a planning
 organization develops plans and receives funds under this
 subchapter.
 (4)  "Rural planning organization" means a planning
 organization created under Section 201.653.
 (5)  "Transportation official" means an official in a
 state agency or political subdivision who has responsibility for
 any of the following modes of transportation:
 (A) aviation;
 (B) high-speed rail;
 (C) highways;
 (D) toll roads;
 (E) mass transportation;
 (F) railroads; and
 (G) water traffic.
 (6) "Transportation project" means:
 (A)  the planning of, right-of-way acquisition
 for, expansion of, improvement of, addition to, routine maintenance
 of, contracted routine maintenance of, or contract maintenance of
 a:
 (i) bridge;
 (ii) highway;
 (iii) toll road or toll road system; or
 (iv) railroad;
 (B)  a project that enhances the safety of a
 roadway to the traveling public;
 (C) an air quality improvement initiative;
 (D)  a transportation enhancement activity under
 23 U.S.C. Section 133; or
 (E) mass transportation.
 Sec. 201.652.  PURPOSE. It is in the interest of this state
 to:
 (1)  encourage and promote the safe and efficient
 management, operation, and development of surface transportation
 systems that will serve the mobility needs of people and freight and
 foster economic growth and development in rural and urbanized areas
 of this state, while minimizing transportation-related fuel
 consumption and air pollution through metropolitan, rural, and
 statewide transportation planning processes identified in this
 chapter; and
 (2)  encourage the continued improvement and evolution
 of the metropolitan, rural, and statewide transportation planning
 processes by planning organizations and public transit operators as
 guided by the planning factors identified in state and federal law.
 Sec. 201.653.  RURAL PLANNING ORGANIZATIONS. (a) To carry
 out the transportation planning process required by this
 subchapter, a rural planning organization may be created to serve
 an area that is located in the boundaries of a council of government
 and outside the boundaries of a metropolitan planning organization
 if the governing bodies of the units of local government in which at
 least 75 percent of the population of the area resides each adopt a
 resolution agreeing to the creation of the organization.
 (b)  A rural planning organization is governed by a board of
 directors composed of local elected officials and the district
 engineer of the department district in which the area is located.
 (c)  For a rural planning organization to be eligible to
 receive funds from this state for transportation projects under
 Section 201.668:
 (1)  at least 75 percent of the organization's board
 members must be elected officials who are elected within the
 boundaries of the rural planning organization; and
 (2)  only elected officials may be voting members of
 the organization's board.
 (d)  A rural planning organization may be dissolved by
 official action of its board.
 (e)  As soon as practicable after a rural planning
 organization is created or dissolved, the organization shall send
 notice of its creation or dissolution to the commission.
 (f)  The department may use money in the state highway fund
 to fund the operations of a rural planning organization, subject to
 Section 201.672(c).
 (g)  A rural planning organization shall develop
 transportation plans and programs for its service area in
 accordance with this subchapter.
 (h)  A rural planning organization may provide to the
 commission recommendations concerning the selection of
 transportation projects, systems, or programs to be undertaken in
 the boundaries of the rural planning organization.
 (i)  In this section, "elected official" means the presiding
 officer or a member of the governing body of a municipality, a
 county judge, a county commissioner, a state representative, or a
 state senator.
 (j)  If the rural planning organization does not provide
 recommendations under Subsection (h), the department shall seek
 input from the rural planning organization, municipal and county
 officials, and transportation officials to determine the
 transportation projects, systems, or programs to be undertaken in
 the boundaries of the rural planning organization.
 Sec. 201.654.  CASH FLOW FORECAST. (a) On September 1 of
 each odd-numbered year, the department's chief financial officer
 shall issue a cash flow forecast for each method and category of
 funding that covers a period of not less than the 10 years following
 the date the forecast is issued.
 (b)  The forecast must identify all sources of funding
 available for transportation projects, including bond proceeds.
 (c)  The first two years of the forecast must be based on the
 appropriation of funds in the General Appropriations Act for the
 department for that biennium.
 Sec. 201.655.  ALLOCATION AND DEPOSIT OF FUNDING.  (a)  The
 commission shall use the cash flow forecast under Section 201.654
 to allocate funding to the planning organizations in accordance
 with Section 201.668.
 (b)  The funds shall be deposited into subaccounts for each
 region in the state highway fund. The balance of the subaccount
 shall be carried forward from year to year for the benefit of the
 region.
 Sec. 201.656.  PLANNING ORGANIZATION 10-YEAR PLAN.  (a)
 Each planning organization shall develop a 10-year transportation
 plan for the use of the funding allocated to the region.
 (b)  The first four years of the plan shall be developed to
 meet the transportation improvement plan requirements of 23 U.S.C.
 Section 135.
 (c)  The department shall compile the planning
 organizations' project selections to develop the statewide
 transportation plan in accordance with 23 U.S.C. Section 135.
 Sec. 201.657.  COORDINATION BETWEEN PLANNING ORGANIZATIONS
 TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS.  Planning organizations
 shall collaborate with one another and with the department to
 develop mutually acceptable assumptions for the purposes of
 long-range federal and state funding forecasts and use those
 assumptions to guide long-term planning.
 Sec. 201.658.  PLANNING ORGANIZATION PROJECT SELECTION AND
 PRIORITIZATION.  (a)  Each metropolitan planning organization and
 rural planning organization shall, for the area in its boundaries,
 select projects and order them in priority.
 (b)  For an area not located in the boundaries of a
 metropolitan planning organization or rural planning organization,
 the applicable department district shall:
 (1)  select projects and order them in priority with
 input from municipal and county officials and transportation
 officials; and
 (2)  submit the projects to the commission for final
 approval.
 (c)  A metropolitan planning organization or rural planning
 organization may delegate authority to select any category of
 projects and order them in priority to the applicable department
 district.
 Sec. 201.659.  PROCESS FOR DEVELOPING PLANS AND PROGRAMS.
 The process for developing the plans and programs under this
 subchapter must:
 (1)  provide for consideration of all modes of
 transportation;
 (2)  be continuing, cooperative, and comprehensive to
 the extent appropriate, based on the complexity of the
 transportation problems to be addressed; and
 (3)  give consideration to statewide connectivity of
 transportation services and infrastructure.
 Sec. 201.660.  PLANNING ORGANIZATION LONG-RANGE PLAN.  (a)
 A planning organization may also prepare and update periodically a
 long-range transportation plan for its region.
 (b)  The first 10 years of the long-range plan shall be
 identical to the plan developed under Section 201.656.
 (c)  Before approving a long-range transportation plan, a
 planning organization shall provide to residents in its boundaries,
 affected public agencies, and other interested parties a reasonable
 opportunity to comment on the long-range transportation plan.
 (d)  A planning organization shall make each of its
 long-range transportation plans readily available for public
 review and shall deliver each plan to the commission at the times
 and in the manner required by the commission.
 Sec. 201.661.  PARTICIPATION IN PLAN DEVELOPMENT.  (a)  In
 developing a plan under this subchapter, a planning organization
 shall seek the opinions and assistance of the appropriate
 transportation officials.
 (b)  As appropriate, the department and a metropolitan
 planning organization may enter into a memorandum of understanding
 relating to the planning of transportation services.
 (c)  The department shall review the plans of each planning
 organization to ensure compliance with the requirements of 23
 U.S.C. Section 135, and provide assistance to a planning
 organization to correct deficiencies.
 Sec. 201.662.  PLANS TO BE FINANCIALLY CONSTRAINED.  A plan
 under this subchapter must be financially constrained and identify
 transportation projects and projects for any other mode of
 transportation not included in Section 201.651(5).
 Sec. 201.663.  PLAN ADJUSTMENTS. The commission shall adopt
 rules to allow a planning organization to move projects forward or
 delay projects if there are additional or less funds available than
 identified in the cash flow forecast under Section 201.654.
 Adjustments to the plan may not be made more than semiannually,
 unless there are substantial increases or decreases in available
 funding.
 Sec. 201.664.  EVALUATION COMPONENT OF PLAN.  A plan under
 this subchapter shall include a component, published annually, that
 describes the evaluation of transportation improvements based on
 performance measures, such as indices that measure delay reductions
 or travel time improvements. The planning organization shall
 consider the performance measures in selecting transportation
 improvements.
 Sec. 201.665.  DEPARTMENT'S STATEWIDE TRANSPORTATION
 PROGRAM AND BUDGET.  (a)  The department shall use the planning
 organizations' project lists to create the statewide
 transportation program and budget. The statewide transportation
 program and budget shall include at least:
 (1) the department's operating budget;
 (2)  the official cash flow forecast under Section
 201.654;
 (3) the regions' allocations of funds;
 (4)  the projects selected by the planning organization
 under Section 201.658; and
 (5) the work plan required by Section 201.674.
 (b)  The statewide transportation program and budget shall
 be complete and adopted not later than June 30 of each even-numbered
 year. The commission shall adopt rules to create a process for
 planning organizations to amend the plan from July 1 of each
 even-numbered year until August 31 of the following year.
 Amendments to the plan may only reorder projects identified in the
 same region subject to Section 201.663.
 Sec. 201.666.  LENDING FUNDS BETWEEN PLANNING
 ORGANIZATIONS.  (a)  The commission may adopt rules to allow a
 planning organization to loan funds to another planning
 organization at the lending organization's discretion.  Funds may
 be loaned under this section only to avoid the lapsing of federal
 appropriations authority.
 (b)  The rules must allow the lending planning organization
 to have a senior position with regard to any future allocated funds
 of the borrowing planning organization.
 (c)  The lending planning organization may not charge
 interest on funds borrowed by another planning organization that
 exceed the current bond rate of outstanding state highway fund
 bonds or in the absence of outstanding debt the prevailing market
 rate for comparable municipal debt. The commission shall notify
 all districts of that rate.
 (d)  A lending planning organization may not be penalized in
 its performance measures if it successfully negotiates a loan with
 another planning organization.
 (e)  The commission may be involved in the coordination of a
 loan of funds under this section.
 Sec. 201.667.  ORGANIZATION OF STATEWIDE TRANSPORTATION
 PROGRAM AND BUDGET.  (a)  The statewide transportation program and
 budget shall be organized first by region, then by mode of
 transportation, followed by the year of the project.
 (b)  The summary tables of the statewide transportation
 program and budget shall summarize the statewide project cost by
 mode and then by year and shall be made available online in
 accordance with Section 201.807.
 Sec. 201.668.  TRANSPORTATION ALLOCATION FUNDING FORMULA.
 (a) The commission shall adopt rules that create funding formulas
 for transportation projects. In developing the formulas the
 commission shall consider the input of planning organizations,
 transportation officials, and county and municipal officials.
 (b)  All funds received by the department for highways,
 including toll roads and toll road systems, that may be allocated in
 this state's or the department's discretion shall be allocated by a
 formula to each planning organization that is based on performance
 measures and includes at least the following criteria:
 (1) centerline miles;
 (2) level of congestion;
 (3)  percentage of population below federal poverty
 level;
 (4) population;
 (5) safety; and
 (6) vehicle miles traveled.
 (c)  The commission shall allocate to the planning
 organizations funding for the project costs of all transportation
 projects. The commission shall adopt various formulas for the
 different types of transportation projects, including funding for
 statewide connectivity projects. The commission shall adopt rules
 for all transportation formulas.
 Sec. 201.669.  USE OF ALLOCATED FUNDS.  The funds allocated
 to a planning organization under Section 201.668 may be used to:
 (1)  pay project costs, provide toll equity, or make
 payments under a pass-through toll agreement, for transportation
 projects selected by the planning organization;
 (2) pay debt service;
 (3) repay money borrowed from another region; or
 (4)  fund a planning organization's operations under
 Section 201.672.
 Sec. 201.670.  SURPLUS REVENUE AND CONTRACT PAYMENTS NOT
 ALLOCATED BY FORMULA.  (a)  Revenue from Sections 228.005,
 228.0055, and 228.006 shall be allocated in accordance with
 Subchapter B, Chapter 228.
 (b)  Funds associated with toll projects under Chapter 228
 are not considered revenue allocated by a formula under Section
 201.668.
 Sec. 201.671.  ENCUMBRANCE OF ALLOCATED FUNDS.  (a)  The
 allocation of funds shall be encumbered in an amount equal to the
 engineer's estimate of the project cost and reduced by the actual
 project cost at the time payments associated with the project are
 paid.
 (b)  If a planning organization elects to use bond proceeds
 to advance a project, the allocation of funds shall be encumbered by
 the annual cost of debt service and reduced when debt service
 payments are paid.
 Sec. 201.672.  USE OF ALLOCATED FUNDS FOR OPERATING COSTS OF
 PLANNING ORGANIZATION.  (a)  A metropolitan planning organization
 operating in a transportation management area as defined by 23
 U.S.C. Section 134(k) may use the allocated funds to pay for the
 operations costs of the planning organization. The amount that may
 be allocated to pay for the operations of the planning organization
 may not exceed the lesser of $10 million or 10 percent of the
 planning organization's total funds.
 (b)  A metropolitan planning organization operating in an
 area that is not a transportation management area may use the
 allocated funds to pay for the operations costs of the planning
 organization.  The amount that may be allocated to pay for the
 operations of the planning organization may not exceed the lesser
 of $3 million or 10 percent of the planning organization's total
 funds.
 (c)  A rural planning organization may use the allocated
 funds to pay for the operations costs of the planning organization.
 The amount that may be allocated to pay for the operations of the
 planning organization may not exceed the lesser of $1 million or 10
 percent of the planning organization's total allocated funds.
 Sec. 201.673.  COMMISSION EMERGENCY AND ECONOMIC
 DEVELOPMENT FUNDS. (a) Notwithstanding Section 201.655(b), the
 commission may annually set aside an amount of funds not to exceed
 the lesser of 10 percent of the total funds allocated to all
 districts or $250 million for the purpose of addressing emergencies
 or economic development opportunities that require transportation
 infrastructure. The funds may be carried forward from year to year
 but may not accumulate to more than $1 billion.
 (b)  If the commission elects to set aside an amount of funds
 under Subsection (a), the total amount of funds available for
 allocation shall be reduced by the amount set aside before the
 allocation of funds by the formula.
 (c)  The funds shall be encumbered in an amount equal to the
 engineer's estimate of the project cost and reduced by the actual
 project cost at the time payments associated with the project are
 paid.
 (d)  The commission may use funds set aside under this
 section for emergency and economic development opportunities that
 require transportation infrastructure in the same manner a planning
 organization may use money allocated under Section 201.669.
 (e)  If the commission elects to use bond proceeds to advance
 a project, the funds shall be encumbered by the annual cost of debt
 service and reduced when debt service payments are paid.
 (f)  The funds set aside under Subsection (a) may be used to
 pay cost overruns and change orders only for projects selected by
 the commission under this section.
 (g)  The commission may use the funds set aside under
 Subsection (a) to make payments for projects funded in accordance
 with Section 222.104 or to provide toll equity only if the
 commission selects the projects using a competitive project
 selection process.
 Sec. 201.674.  DEPARTMENT 10-YEAR BUSINESS WORK PLAN. On
 completion of the 10-year transportation plan in Section 201.656,
 the department shall use the prioritized lists of projects to
 develop a proposed 10-year business work plan. The work plan shall
 be adopted not later than August 31 of each even-numbered year and
 include:
 (1)  a list of projects for which planning, permitting,
 design, right-of-way acquisition, or construction work will be
 conducted during the period;
 (2)  the state fiscal quarter in which key milestones
 for each project will be reached, including environmental
 clearance, completion of final engineering plans, completion of
 right-of-way acquisition, letting to contract, and completion of
 construction; and
 (3)  the funding allocated or estimated in each state
 fiscal year for each category of work for each project.
 Sec. 201.675.  WORK PROGRAM. (a)  Each department district
 shall develop a consistently formatted work program based on the
 department 10-year business work plan covering a period of four
 years that contains all projects that the district proposes to
 implement during that period.
 (b) The department shall use the work program to:
 (1) monitor the performance of the district; and
 (2) evaluate the performance of district employees.
 (c)  The department shall publish the work program in
 appropriate media and on the department's Internet website.
 Sec. 201.676.  STATEWIDE CONNECTIVITY PLAN AND PROJECTS. (a)
 The department shall work with planning organizations to develop a
 statewide connectivity plan.
 (b) The department by rule shall:
 (1)  establish criteria for designating a project as a
 statewide connectivity project; and
 (2)  develop benchmarks for evaluating the progress of
 a statewide connectivity project and timelines for implementation
 and construction of a statewide connectivity project.
 (c)  The department annually shall update the list of
 projects that are designated as statewide connectivity projects.
 (d)  The commission shall adopt the statewide connectivity
 plan.
 Sec. 201.677.  PAVEMENT MANAGEMENT INFORMATION SYSTEM. (a)
 The department shall measure the condition of the pavement for each
 highway under the jurisdiction of the department.
 (b)  The department shall establish a system that makes the
 information collected under Subsection (a) available to the
 planning organizations for use in determining transportation
 projects.
 Sec. 201.678.  FINALIZED BIENNIAL PROJECT PLAN.  In addition
 to the plan required by Section 201.674 and other provisions of this
 chapter, not later than August 31 of each odd-numbered year, the
 department shall finalize a project plan for the period that begins
 on September 1 of that year and ends on August 31 of the following
 odd-numbered year. The plan must include:
 (1)  a project schedule with funding for each phase of
 each project;
 (2)  a consultant acquisition plan with a schedule for
 contract selections;
 (3) a right-of-way acquisition plan; and
 (4) a letting plan.
 Sec. 201.679.  PERFORMANCE MEASURES FOR BIENNIAL PROJECT
 PLAN.  (a)  The department shall develop a set of performance
 measures for the plan under Section 201.678 intended to measure:
 (1) the execution of the work program;
 (2)  the efficiency and cost-effectiveness of its
 business practices;
 (3) the preservation of the system investment;
 (4) the addition of new capacity to the system;
 (5) safety initiatives; and
 (6)  utilization of minority, disadvantaged, and small
 businesses.
 (b)  At a minimum, the performance measures adopted under
 Subsection (a) must include:
 (1)  the percentage of projects for which environmental
 clearance is obtained on or before the planned date;
 (2)  the number of engineering contracts or work orders
 executed in contrast with the number planned;
 (3)  the average time between selection and execution
 of a contract for engineering services;
 (4)  the number of right-of-way parcels acquired and
 the number scheduled to be acquired;
 (5)  the percentage of projects for which right-of-way
 acquisition is completed on or before the planned date;
 (6)  the percentage of parcels acquired through
 negotiation;
 (7)  the percentage of negotiated parcels acquired for
 an amount that does not exceed 120 percent of the initial department
 offer;
 (8)  the total amount spent for right-of-way as a
 percentage of the original estimated amount;
 (9)  the number of construction contracts entered into
 in contrast with the number planned;
 (10)  the percentage of construction contracts
 executed on or before the planned letting date;
 (11)  the total amount spent for construction contracts
 as a percentage of the original estimated amount;
 (12)  for all construction contracts completed during
 the state fiscal year, the percentage completed within 20 percent
 of the original contract time;
 (13)  for all construction contracts completed during
 the state fiscal year, the percentage completed within 10 percent
 of the original contract price;
 (14)  construction contract adjustments as a
 percentage of original contract price;
 (15)  the percentage of bridge structures on the state
 highway system that have a rating of good or excellent;
 (16)  the percentage of bridge structures on the state
 highway system that have a posted weight limitation;
 (17)  the number of bridge repair contracts let in
 contrast with the number planned;
 (18)  the number of bridge replacement contracts let in
 contrast with the number planned;
 (19)  the percentage of lane miles on the state highway
 system that have a pavement condition rating of excellent or good;
 (20)  the number of lane miles on the state highway
 system that were resurfaced in contrast with the number planned;
 (21)  the number of lane miles of capacity improvement
 projects let in contrast with the number planned;
 (22)  of the federal funds subject to forfeiture at the
 end of the state fiscal year, the percentage that was committed by
 the department;
 (23)  the amounts of cash receipts and disbursements in
 contrast with the forecasted amounts;
 (24)  the amount spent in connection with contracts
 with minority business enterprises as a percentage of the amount
 spent on all contracts;
 (25)  the number of construction contracts let in
 contrast with the number let in previous state fiscal years;
 (26)  the peak hour travel congestion in the seven
 largest metropolitan areas in contrast with previous state fiscal
 years;
 (27)  the number of vehicle miles traveled in contrast
 with previous state fiscal years; and
 (28)  the number of lane miles added as a percentage of
 the number of previously existing lane miles.
 (c)  The department shall consult with the Transportation
 Legislative Oversight Committee in developing the performance
 measures under Chapter 205. This subsection expires August 31,
 2013.
 Sec. 201.680.  PERFORMANCE REVIEW. Not later than December
 1 of each odd-numbered year, the commission shall review the
 performance of the department's duties under Section 201.678 and
 make the review available to the public. The review must include a
 report on the level of achievement of each performance measure
 listed in Section 201.679(a), statewide and by department district,
 and a status report on each major project under development.
 SECTION 2.03. Subchapter J, Chapter 201, Transportation
 Code, is amended by adding Sections 201.807, 201.808, and 201.809
 to read as follows:
 Sec. 201.807.  PROJECT INFORMATION REPORTING SYSTEM. (a)
 The department shall establish a project information reporting
 system that makes available in a central location on the
 department's Internet website easily accessible and searchable
 information to enable the tracking of project development and the
 expenditure of funds in the department's statewide transportation
 program and budget. The project information reporting system shall
 contain information about:
 (1) each project, including:
 (A) the status of the project;
 (B) each source of funding for the project;
 (C)  benchmarks for evaluating the progress of the
 project;
 (D) timelines for completing the project;
 (E)  a list of the department employees
 responsible for the project, including information to contact each
 person on that list; and
 (F)  the results of the annual review required
 under Subsection (e);
 (2)  each construction work zone for a project that has
 a construction phase timeline that exceeds one month or the cost of
 which exceeds $5 million, including information about:
 (A)  the number of lanes that will remain open
 during the project's construction phase;
 (B)  the location and duration of each lane
 closure; and
 (C)  the expected and actual traffic delay
 resulting from each lane closure;
 (3) road maintenance projects, including:
 (A)  the criteria for designating a project as a
 road maintenance project; and
 (B)  the condition of each road before the road
 maintenance project; and
 (4)  the department's funds, including each source for
 the department's funds and each expenditure made by the department
 reported by each:
 (A) department district;
 (B) program funding category; and
 (C)  type of revenue, including revenue from a
 comprehensive development agreement or a toll project.
 (b)  The department shall develop an interactive web-based
 system for the tracking of planning organization allocations and
 projects under Subchapter H-1.  The planning organizations shall be
 granted access to the system through a secure site to input
 information regarding projects and the associated project costs.
 The system shall provide the planning organization information
 regarding the organization's allocation of funding for the region
 and the federal and state requirements for each source of funding.
 (c)  In developing the project information reporting system,
 the department shall collaborate with:
 (1) the legislature;
 (2)  planning organizations, as defined by Section
 201.651; and
 (3) members of the public.
 (d)  The department shall make the statistical information
 provided under this section available on the department's Internet
 website in more than one downloadable electronic format.
 (e)  As a component of the project information reporting
 system required by this section, the department shall conduct an
 annual review of the benchmarks and timelines of each project
 included in the department's statewide transportation program and
 budget to determine the completion rates of the projects and
 whether the projects were completed on time.
 (f)  The department shall continuously update the
 information contained in the project information reporting system.
 Sec. 201.808.  TRANSPORTATION EXPENDITURE PRIORITIES. (a)
 The department shall develop a process to identify and distinguish
 between the transportation projects that are required to  maintain
 the state infrastructure and the transportation projects that would
 improve the state infrastructure.
 (b)  The department shall establish a transportation
 expenditure reporting system that makes available in a central
 location on the department's Internet website easily accessible and
 searchable information regarding the priorities of transportation
 expenditures for the identified transportation projects.
 (c)  The department shall include in the transportation
 expenditure reporting system:
 (1)  reports prepared by the department or an
 institution of higher education that evaluate the effectiveness of
 the department's expenditures on transportation projects;
 (2)  information about the condition of the pavement
 for each highway under the jurisdiction of the department,
 including:
 (A)  the international roughness index issued by
 the United States Department of Transportation Federal Highway
 Administration; and
 (B)  the percentage of pavement that the
 department determines to be in good or better condition;
 (3)  the condition of bridges, including information
 about:
 (A)  bridges that are structurally deficient or
 functionally obsolete; and
 (B) bridge deterioration scores;
 (4)  information about traffic congestion and traffic
 delays, including:
 (A) the locations of the worst traffic delays;
 (B)  the variable travel time for major streets
 and highways in this state; and
 (C)  the effect of traffic congestion on motor
 vehicle travel and motor carriers; and
 (5)  information about the number of traffic accidents,
 injuries, and fatalities, including a list of the locations in each
 department district for the highest number of traffic accidents,
 injuries, or fatalities.
 (d)  The department shall provide the information made
 available under Subsection (c) in a format that allows a person to
 conduct electronic searches for information regarding a specific
 county, highway under the jurisdiction of the department, or class
 of road.
 (e)  Each department district or planning organization, as
 that term is defined by Section 201.651, shall enter information
 into the transportation expenditure reporting system, including
 information about each project and the priority of each project.
 (f)  The transportation expenditure reporting system shall
 allow a person to compare information produced by that system to
 information produced by the project information reporting system.
 Sec. 201.809.  DEPARTMENT INFORMATION CONSOLIDATION. To the
 extent practicable and to avoid duplication of reporting
 requirements, the department may combine the reports required under
 this subchapter with reports required under other provisions of
 this code.
 SECTION 2.04. Section 222.034(b), Transportation Code, is
 amended to read as follows:
 (b) The commission may vary from the distribution procedure
 provided by Subsection (a) if it issues a ruling or minute order
 identifying the variance and providing a particular justification
 for the variance. If the commission intends to vary from the
 distribution procedure, it must allocate the funding in accordance
 with a formula adopted under Section 201.668.
 SECTION 2.05. Section 222.105, Transportation Code, is
 amended to read as follows:
 Sec. 222.105. PURPOSES. The purposes of Sections 222.106
 and 222.107 are to:
 (1) promote public safety;
 (2) facilitate the improvement, development, or
 redevelopment of property;
 (3) facilitate the movement of traffic; and
 (4) enhance a local entity's ability to sponsor a
 transportation project authorized under Section 222.104.
 SECTION 2.06. Section 222.106, Transportation Code, is
 amended by amending Subsections (b), (c), (g), (h), (i), (j), (k),
 and (l) and adding Subsections (i-1) and (i-2) to read as follows:
 (b) This section applies only to a municipality in which a
 transportation project is to be developed [the governing body of
 which intends to enter into an agreement with the department] under
 Section 222.104.
 (c) If the governing body determines an area to be
 unproductive and underdeveloped and that action under this section
 will further the purposes stated in Section 222.105, the governing
 body of the municipality by ordinance may designate a contiguous
 geographic area in the jurisdiction of the municipality to be a
 transportation reinvestment zone to promote a transportation
 project [described by Section 222.104 that cultivates development
 or redevelopment of the area].
 (g) The ordinance designating an area as a transportation
 reinvestment zone must:
 (1) describe the boundaries of the zone with
 sufficient definiteness to identify with ordinary and reasonable
 certainty the territory included in the zone;
 (2) provide that the zone takes effect immediately on
 passage of the ordinance;
 (3) assign a name to the zone for identification, with
 the first zone designated by a municipality designated as
 "Transportation Reinvestment Zone Number One, (City or Town, as
 applicable) of (name of municipality)," and subsequently
 designated zones assigned names in the same form, numbered
 consecutively in the order of their designation;
 (4) designate the base year for purposes of
 establishing the tax increment base of the municipality;
 (5) establish an ad valorem tax increment account for
 the zone; and
 (6) [(5)] contain findings that promotion of the
 transportation project will cultivate the improvement,
 development, or redevelopment of the zone.
 (h) From taxes collected on property in a zone, the
 municipality shall pay into the tax increment account for the zone
 [an amount equal to] the tax increment produced by the
 municipality, less any amount allocated under previous agreements,
 including agreements under Chapter 380, Local Government Code, or
 Chapter 311, Tax Code.
 (i) All or the portion specified by the municipality of the
 money deposited to a tax increment account must be used to fund the
 transportation project for which the zone was designated, as well
 as aesthetic improvements within the zone. Any remaining money
 deposited to the tax increment account may be used for other
 purposes as determined by the municipality [Money deposited to a
 tax increment account must be used to fund projects authorized
 under Section 222.104, including the repayment of amounts owed
 under an agreement entered into under that section].
 (i-1)  The governing body of a municipality may contract with
 a public or private entity to develop, redevelop, or improve a
 transportation project in a transportation reinvestment zone and
 may pledge and assign all or a specified amount of money in the tax
 increment account to that entity. After a pledge or assignment is
 made, if the entity that received the pledge or assignment has
 itself pledged or assigned that amount to secure bonds or other
 obligations issued to obtain funding for the transportation
 project, the governing body of the municipality may not rescind its
 pledge or assignment until the bonds or other obligations secured
 by the pledge or assignment have been paid or discharged.
 (i-2)  To accommodate changes in the limits of the project
 for which a reinvestment zone was designated, the boundaries of a
 zone may be amended at any time, except that property may not be
 removed or excluded from a designated zone if any part of the tax
 increment account has been assigned or pledged directly by the
 municipality or through another entity to secure bonds or other
 obligations issued to obtain funding of the project, and property
 may not be added to a designated zone unless the governing body of
 the municipality complies with Subsections (e) and (g).
 (j) Except as provided by Subsections (i-1) and
 [Subsection] (k), a transportation reinvestment zone terminates on
 December 31 of the year in which the municipality completes
 [complies with] a contractual requirement, if any, that included
 the pledge or assignment of all or a portion of money deposited to a
 tax increment account or the repayment of money owed under an [the]
 agreement for development, redevelopment, or improvement of the
 project for [under Section 222.104 in connection with] which the
 zone was designated.
 (k) A transportation reinvestment zone terminates on
 December 31 of the 10th year after the year the zone was designated,
 if before that date the municipality has not entered into a contract
 described in Subsection (i-1) or otherwise not used the zone for the
 purpose for which it was designated.
 (l) Any surplus remaining in a tax increment account on
 termination of a zone may be used for other purposes as determined
 by [transportation projects of] the municipality [in or outside of
 the zone].
 SECTION 2.07. The heading to Section 222.107,
 Transportation Code, is amended to read as follows:
 Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES[;
 TAX ABATEMENTS; ROAD UTILITY DISTRICTS].
 SECTION 2.08. Section 222.107, Transportation Code, is
 amended by amending Subsections (b), (c), (e), (f), (h), (i), (k),
 and (l) and adding Subsections (h-1) and (k-1) to read as follows:
 (b) This section applies only to a county in which a
 transportation project is to be developed [the commissioners court
 of which intends to enter into a pass-through toll agreement with
 the department] under Section 222.104.
 (c) The commissioners court of the county, after
 determining that an area is unproductive and underdeveloped and
 that action under this section would further the purposes described
 by Section 222.105, by order or resolution may designate a
 contiguous geographic area in the jurisdiction of the county to be a
 transportation reinvestment zone to promote a transportation
 project [described by Section 222.104 that cultivates development
 or redevelopment of the area] and for the purpose of abating ad
 valorem taxes or granting other relief from taxes imposed by the
 county on real property located in the zone.
 (e) Not later than the 30th day before the date the
 commissioners court proposes to designate an area as a
 transportation reinvestment zone under this section, the
 commissioners court must hold a public hearing on the creation of
 the zone, its benefits to the county and to property in the proposed
 zone, and the abatement of ad valorem taxes or the grant of other
 relief from ad valorem taxes imposed by the county on real property
 located in the zone. At the hearing an interested person may speak
 for or against the designation of the zone, its boundaries, or the
 abatement of or the relief from county taxes on real property in the
 zone. Not later than the seventh day before the date of the
 hearing, notice of the hearing and the intent to create a zone must
 be published in a newspaper having general circulation in the
 county.
 (f) The order or resolution designating an area as a
 transportation reinvestment zone must:
 (1) describe the boundaries of the zone with
 sufficient definiteness to identify with ordinary and reasonable
 certainty the territory included in the zone;
 (2) provide that the zone takes effect immediately on
 adoption of the order or resolution; [and]
 (3) assign a name to the zone for identification, with
 the first zone designated by a county designated as "Transportation
 Reinvestment Zone Number One, County of (name of county)," and
 subsequently designated zones assigned names in the same form
 numbered consecutively in the order of their designation; and
 (4)  designate the base year for purposes of
 establishing the tax increment base of the county.
 (h) The commissioners court by order or resolution may enter
 into an agreement with the owner of any real property located in the
 transportation reinvestment zone to abate all or a portion of the ad
 valorem taxes or to grant other relief from the taxes imposed by the
 county on the owner's property in an amount not to exceed the amount
 calculated under Subsection (a)(1) for that year. All abatements
 or other relief granted by the commissioners court in a
 transportation reinvestment zone must be equal in rate. In the
 alternative, the commissioners court by order or resolution may
 elect to abate a portion of the ad valorem taxes or otherwise grant
 relief from the taxes imposed by the county on all real property
 located in the zone. In any ad valorem tax year, the total amount
 of the taxes abated or the total amount of relief granted under this
 section may not exceed the amount calculated under Subsection
 (a)(1) for that year, less any amounts allocated under previous
 agreements, including agreements under Chapter 381, Local
 Government Code, or Chapter 312, Tax Code.
 (h-1)  To further the development of the transportation
 project for which the transportation reinvestment zone was
 designated, a county may assess all or part of the cost of the
 transportation project against property within the zone. The
 assessment against each property in the zone may be levied and
 payable in installments in the same manner as provided by Sections
 372.016-372.018, Local Government Code, provided that the
 installments do not exceed the total amount of the tax abatement or
 other relief granted under Subsection (h). The county may elect to
 adopt and apply the provisions of Sections 372.015-372.020 and
 372.023, Local Government Code, to the assessment of costs and
 Sections 372.024-372.030, Local Government Code, to the issuance of
 bonds by the county to pay the cost of a transportation project. The
 commissioners court of the county may contract with a public or
 private entity to develop, redevelop, or improve a transportation
 project in the transportation reinvestment zone, including
 aesthetic improvements, and may pledge and assign to that entity
 all or a specified amount of the revenue the county receives from
 installment payments of the assessments for the payment of the
 costs of that transportation project. After a pledge or assignment
 is made, if the entity that received the pledge or assignment has
 itself pledged or assigned that amount to secure bonds or other
 obligations issued to obtain funding for the transportation
 project, the commissioners court of the county may not rescind its
 pledge or assignment until the bonds or other obligations secured
 by the pledge or assignment have been paid or discharged. Any
 amount received from installment payments of the assessments not
 pledged or assigned in connection with the transportation project
 may be used for other purposes associated with the transportation
 project or in the zone.
 (i) In the alternative, to [To] assist the county in
 developing a transportation project [authorized under Section
 222.104], if authorized by the commission under Chapter 441, a road
 utility district may be formed under that chapter that has the same
 boundaries as a transportation reinvestment zone created under this
 section.
 (k) A road utility district formed as provided by Subsection
 (i) may enter into an agreement [with the county to assume the
 obligation, if any, of the county] to fund development of a project
 [under Section 222.104] or to repay funds owed to the department
 [under Section 222.104]. Any amount paid for this purpose is
 considered to be an operating expense of the district. Any taxes
 collected by the district that are not paid for this purpose may be
 used for any district purpose.
 (k-1)  To accommodate changes in the limits of the project
 for which a reinvestment zone was designated, the boundaries of a
 zone may be amended at any time, except that property may not be
 removed or excluded from a designated zone if any part of the
 assessment has been assigned or pledged directly by the county or
 through another entity to secure bonds or other obligations issued
 to obtain funding of the project, and property may not be added to a
 designated zone unless the governing body of the municipality
 complies with Subsections (e) and (f).
 (l) Except as provided by Subsection (m), a tax abatement
 agreement entered into under Subsection (h), or an order or
 resolution on the abatement of taxes or the grant of relief from
 taxes under that subsection, terminates on December 31 of the year
 in which the county completes any contractual requirement that
 included the pledge or assignment of assessments [of money]
 collected under this section.
 SECTION 2.09. Subchapter E, Chapter 222, Transportation
 Code, is amended by adding Sections 222.108 and 222.109 to read as
 follows:
 Sec. 222.108.  TRANSPORTATION REINVESTMENT ZONES FOR OTHER
 TRANSPORTATION PROJECTS. (a) Notwithstanding the requirement in
 Sections 222.106(b) and 222.107(b) that a transportation
 reinvestment zone be established in connection with a project under
 Section 222.104, a municipality or county may establish a
 transportation reinvestment zone for any transportation project.
 If all or part of the transportation project is subject to oversight
 by the department, at the option of the governing body of the
 municipality or county, the department shall delegate full
 responsibility for the development, design, letting of bids, and
 construction of the project, including project oversight and
 inspection, to the municipality or county provided that the
 commission or department may take any action that in its reasonable
 judgment is necessary to comply with any federal requirement to
 enable this state to receive federal-aid highway funds.
 (b)  A transportation project developed under Subsection (a)
 that is on the state highway system must comply with state design
 criteria unless the department grants an exception to the
 municipality or county.
 (c)  In this section, "transportation project" has the
 meaning assigned by Section 370.003.
 Sec. 222.109.  REDUCTION PROHIBITED. (a) A municipality or
 county may not be penalized with a reduction in traditional
 transportation funding because of the designation and use of a
 transportation reinvestment zone under this chapter. Any funding
 from the department identified for a project before the date that a
 transportation reinvestment zone is designated may not be reduced
 because the transportation reinvestment zone is designated in
 connection with that project.
 (b)  The department may not reduce any allocation of
 traditional transportation funding to any of its districts because
 a district contains a municipality or county that contains a
 transportation reinvestment zone designated under this chapter.
 SECTION 2.10. (a) Section 223.041, Transportation Code, is
 amended by adding Subsections (c), (d), (e), and (f) to read as
 follows:
 (c)  Of the positions paid out of funds appropriated to the
 department for the planning, design, and management of
 transportation projects in the General Appropriations Act
 (Strategy A.1.1., or its successor), the department may fill only
 one of every five positions until staffing levels are reduced by 40
 percent from the level existing as of August 31, 2009, or to a level
 not to exceed 2,500 positions, with commensurate reductions in
 associated administrative costs.
 (d)  The department shall report to the Legislative Budget
 Board not later than September 1 of each year on the department's
 progress in achieving the goal set by Subsection (c).
 (e)  The Legislative Budget Board may modify the
 requirements of Subsection (c) if, after a study by the State
 Council on Competitive Government, the board finds that it is not
 possible for the department to obtain services from the private
 sector on a cost-effective basis. A study conducted under this
 section must:
 (1)  analyze the full costs of the department's total
 plan/design/manage function, with indirect costs allocated in
 proportion to chargeable salaries in a manner comparable to private
 providers;
 (2)  analyze the department's historic costs of
 procuring services from private sector providers, including the
 costs of comprehensive project delivery services;
 (3)  review and analyze the costs that other public
 entities have for procuring project delivery and engineering
 services from private sector providers for large-scale
 construction projects; and
 (4)  review and make recommendations regarding
 engineering management practices used by other public entities that
 could improve the efficiency of the department's project delivery
 and engineering management system.
 (f)  If the Legislative Budget Board makes a request for a
 study under Subsection (e), the costs of the study shall be paid by
 the department through interagency contract. The study shall be
 managed by the State Council on Competitive Government but may be
 performed by an independent contractor.
 SECTION 2.11. Section 222.053, Transportation Code, is
 amended by amending Subsection (b) and adding Subsection (i) to
 read as follows:
 (b) Except as provided by Subsections [Subsection] (c) and
 (i), the commission may require, request, or accept from a
 political subdivision matching or other local funds,
 rights-of-way, utility adjustments, additional participation,
 planning, documents, or any other local incentives to make the most
 efficient use of its highway funding.
 (i)  The commission may waive, from a political subdivision,
 matching or other local funds, rights-of-way, utility adjustments,
 additional participation, planning, documents, or any other local
 incentives for a designated Texas Highway Trunk System project
 located in:
 (1) a county with a population of less than 5,000; or
 (2)  a county with a population of 5,000 or more but
 less than 15,000 if the project is part of a high priority corridor
 on the national highway system identified under Section 1105 of the
 Intermodal Surface Transportation Efficiency Act of 1991 (Pub. L.
 No. 102-240) or other federal legislation.
 SECTION 2.12. (a) Subchapter D, Chapter 472, Transportation
 Code, is amended by adding Sections 472.0311 through 472.0316 and
 472.035 through 472.046 to read as follows:
 Sec. 472.0311.  PURPOSE. (a) The metropolitan
 transportation planning process described by this subchapter is
 intended to:
 (1)  encourage and promote the safe and efficient
 management, operation, and development of surface transportation
 systems to serve the mobility needs of people and freight;
 (2)  foster economic growth and development in and
 through urbanized areas of this state; and
 (3)  minimize transportation-related fuel consumption,
 air pollution, and greenhouse gas emissions.
 (b)  To accomplish the objectives under Subsection (a),
 metropolitan planning organizations shall develop, in cooperation
 with this state and public transit operators, transportation plans
 and programs for metropolitan areas in this state.
 (c)  The plans and programs for each metropolitan area must
 provide for the development and integrated management and operation
 of transportation systems and facilities, including pedestrian
 walkways and bicycle transportation facilities that will function
 as an intermodal transportation system for the metropolitan area.
 (d)  The process for developing plans and programs under this
 subchapter shall provide for consideration of all modes of
 transportation and be continuing, cooperative, and comprehensive,
 to the degree appropriate, based on the complexity of the
 transportation issues to be addressed.
 (e)  To ensure that the process is integrated with the
 statewide planning process, metropolitan planning organizations
 shall develop plans and programs that identify transportation
 facilities that should function as an integrated metropolitan
 transportation system and give emphasis to facilities that serve
 important national, state, and regional transportation functions.
 Sec. 472.0312.  DESIGNATION AND BOUNDARIES. (a) A
 metropolitan planning organization must be designated or
 redesignated in accordance with, and its boundaries determined by,
 23 U.S.C. Section 134.
 (b)  Each designated metropolitan planning organization
 must be fully operational not later than the 180th day after the
 date of its designation.
 Sec. 472.0313.  POLICY BOARD OFFICERS. (a)  Each policy
 board shall designate, at a minimum, a presiding officer, an
 assistant presiding officer, and a secretary.
 (b)  The policy board shall select from among its members the
 presiding officer and assistant presiding officer.
 (c)  The secretary of the policy board shall prepare meeting
 minutes and maintain board records. The secretary may be a member of
 the policy board, an employee of the metropolitan planning
 organization, or any other individual.
 Sec. 472.0314.  OPEN MEETINGS. A policy board is subject to
 Chapter 551, Government Code.
 Sec. 472.0315.  POLICY BOARD MEMBERSHIP AND VOTING
 REQUIREMENTS; ELIGIBILITY FOR STATE ALLOCATION OF FUNDING. (a) To
 be eligible to receive funds from this state for transportation
 projects under Section 201.668:
 (1)  at least 75 percent of a metropolitan planning
 organization's policy board members must be elected officials who
 are elected in the boundaries of the metropolitan planning
 organization; and
 (2)  only elected officials may be voting members of
 the organization's policy board.
 (b)  A metropolitan planning organization that is not
 eligible under Subsection (a) may redesignate the board so as to
 become eligible to receive an allocation of funds under Section
 201.668.
 (c)  In this section, "elected official" means the presiding
 officer or a member of the governing body of a municipality, a
 county judge, a county commissioner, a state representative, or a
 state senator.
 Sec. 472.0316.  REPRESENTATION OF TRANSPORTATION-RELATED
 ENTITIES.  (a)  In metropolitan areas in which authorities or other
 agencies have been or may be created by law to perform
 transportation functions and are performing transportation
 functions that are not under the jurisdiction of a municipality or
 county represented on the metropolitan planning organization, the
 authorities or other agencies may be provided voting membership on
 the policy board.
 (b)  In all other metropolitan planning organizations in
 which transportation authorities or agencies are to be represented
 by elected officials from a municipality or county, the
 organization shall establish a process by which the collective
 interests of such authorities or other agencies are expressed and
 conveyed.
 Sec. 472.035.  POWERS, DUTIES, AND RESPONSIBILITIES. (a)
 The powers, duties, and responsibilities of a metropolitan planning
 organization are those specified in this subchapter or incorporated
 in an interlocal agreement entered into to implement this
 subchapter.
 (b)  Each metropolitan planning organization shall perform
 all acts required by applicable federal or state law or rules that
 are necessary to qualify for federal aid.
 Sec. 472.036.  PLANNING.  (a)  To the extent permitted by
 state or federal law, a metropolitan planning organization shall:
 (1)  be involved in the planning and programming of
 transportation facilities, including airports, intermunicipal and
 high-speed rail lines, seaports, and intermodal facilities; and
 (2) in cooperation with the department, develop:
 (A)  a long-range transportation plan as required
 by Section 472.042;
 (B)  an annually updated transportation
 improvement program as required by Section 472.043; and
 (C)  an annual unified planning work program as
 required by Section 472.044.
 (b)  In developing the long-range transportation plan and
 the transportation improvement program under Subsection (a), each
 metropolitan planning organization shall consider projects and
 strategies that will:
 (1)  support the economic vitality of the metropolitan
 area, especially by enabling global competitiveness, productivity,
 and efficiency;
 (2)  increase the safety and security of the
 transportation system for motorized and nonmotorized users;
 (3)  increase the accessibility and mobility options
 available to people and for freight;
 (4)  protect and enhance the environment, promote
 energy conservation, and improve quality of life;
 (5)  enhance the integration and connectivity of the
 transportation system, across and between modes, for people and
 freight;
 (6)  promote efficient system management and
 operation; and
 (7)  emphasize the preservation of the existing
 transportation system.
 (c)  To provide recommendations to the department and local
 governmental entities regarding transportation plans and programs,
 each metropolitan planning organization shall:
 (1)  prepare a congestion management system for the
 metropolitan area and cooperate with the department in the
 development of any other transportation management system required
 by state or federal law;
 (2)  assist the department in mapping transportation
 planning boundaries required by state or federal law;
 (3)  assist the department in performing its duties
 relating to access management, functional classification of roads,
 and data collection;
 (4)  execute all agreements or certifications
 necessary to comply with applicable state or federal law;
 (5)  represent all the jurisdictional areas in the
 metropolitan area in the formulation of a transportation plan or
 program required by this subchapter; and
 (6)  perform all other duties required by state or
 federal law.
 Sec. 472.037.  TECHNICAL ADVISORY COMMITTEE. (a) Each
 metropolitan planning organization shall appoint a technical
 advisory committee whose members serve at the pleasure of the
 metropolitan planning organization.
 (b)  The membership of the technical advisory committee must
 include, if possible:
 (1) planners;
 (2) engineers;
 (3)  a representative of each political subdivision or
 agency or department of a political subdivision that provides
 transportation services, including, as applicable:
 (A)  a port authority, navigation district, or
 public transit authority; or
 (B)  a county or municipal airport or transit
 department;
 (4)  the superintendent of each school district in the
 jurisdiction of the metropolitan planning organization or a person
 designated by the superintendent; and
 (5)  other appropriate representatives of affected
 local governments.
 Sec. 472.038.  SAFE ACCESS TO SCHOOLS. (a) In addition to any
 other duty assigned to it by the metropolitan planning organization
 or by state or federal law, the technical advisory committee is
 responsible for considering safe access to schools in its review of
 transportation project priorities, long-range transportation
 plans, and transportation improvement programs and shall advise the
 metropolitan planning organization on those issues.
 (b)  The technical advisory committee shall coordinate its
 actions with local school boards and other local programs and
 organizations in the metropolitan area that participate in school
 safety activities, including locally established community traffic
 safety teams.
 (c)  A school board must provide the appropriate
 metropolitan planning organization with information concerning
 future school sites and the coordination of transportation
 services.
 Sec. 472.039.  EMPLOYEES.  (a)  Each metropolitan planning
 organization shall employ:
 (1)  an executive or staff director who reports
 directly to the organization's policy board for all matters
 regarding the administration and operation of the metropolitan
 planning organization; and
 (2)  any additional personnel the policy board
 considers necessary.
 (b)  The executive or staff director and additional
 personnel may be employed by the metropolitan planning organization
 or by another governmental entity, including a county,
 municipality, or regional planning organization that has a staff
 services agreement with the metropolitan planning organization.
 (c)  A metropolitan planning organization may enter into a
 contract with a local or state agency, private planning firm,
 private engineering firm, or other public or private entity to
 accomplish the metropolitan planning organization's transportation
 planning and programming duties and administrative functions.
 Sec. 472.040.  TRAINING.  (a)  To enhance its members'
 knowledge, effectiveness, and participation in the transportation
 planning process, a metropolitan planning organization shall
 provide training opportunities and funds for the organization's
 members.
 (b)  Training of its policy board members may be conducted by
 the metropolitan planning organization or through statewide or
 federal training programs and initiatives that are specifically
 designed to meet the needs of metropolitan planning organization
 policy board members.
 Sec. 472.041.  COORDINATION WITH OTHER ENTITIES. A
 metropolitan planning organization may join with any other
 metropolitan planning organization or an individual political
 subdivision to:
 (1) coordinate activities; or
 (2)  achieve any federal or state transportation
 planning or development goal or purpose consistent with federal or
 state law.
 Sec. 472.042.  LONG-RANGE TRANSPORTATION PLAN.  Each
 metropolitan planning organization shall develop a long-range
 transportation plan that addresses at least a 20-year period. The
 plan must include both long-range and short-range strategies and
 comply with all other state and federal requirements.
 Sec. 472.043.  TRANSPORTATION IMPROVEMENT PROGRAM.  (a)
 Each metropolitan planning organization shall develop annually a
 list of project priorities and a transportation improvement
 program. The prevailing principles to be considered by the
 metropolitan planning organization when developing a list are:
 (1)  preserving the existing transportation
 infrastructure;
 (2)  enhancing the economic competitiveness of this
 state; and
 (3) improving travel choices to ensure mobility.
 (b)  The transportation improvement program may be used to
 initiate federally aided transportation facilities and
 improvements and other transportation facilities and improvements,
 including transit, rail, aviation, and port facilities.
 (c)  The transportation improvement program must be
 consistent, to the maximum extent feasible, with comprehensive
 plans of the political subdivisions the boundaries of which are in
 the metropolitan area served by the metropolitan planning
 organization.
 Sec. 472.044.  UNIFIED PLANNING WORK PROGRAM. (a) Each
 metropolitan planning organization shall develop, in cooperation
 with the department and public transit operators, a unified
 planning work program that lists all planning tasks to be
 undertaken during the program year.
 (b)  The unified planning work program must provide a
 complete description of each planning task and an estimated budget
 for that task and must comply with applicable state and federal law.
 Sec. 472.045.  APPLICATION OF FEDERAL LAW. (a) On
 notification by an agency of the federal government that a
 provision of this subchapter conflicts with a federal law or
 regulation, the federal law or regulation takes precedence to the
 extent of the conflict until the conflict is resolved.
 (b)  The department or a metropolitan planning organization
 may take any action necessary to comply with federal laws and
 regulations or to continue to remain eligible to receive federal
 funds.
 Sec. 472.046.  PUBLICATION OF INFORMATION ON INTERNET
 WEBSITE. A metropolitan planning organization shall publish
 financial information on its Internet website, including
 information regarding:
 (1) budgeted annual revenues and expenditures;
 (2) actual annual revenues and expenditures; and
 (3) staffing levels.
 (b) A metropolitan planning organization is not required to
 designate officers in accordance with Section 472.0313,
 Transportation Code, as added by this section, and a technical
 advisory committee of a metropolitan planning organization is not
 required to comply with Section 472.037, Transportation Code, as
 added by this section, before January 1, 2010.
 SECTION 2.13. Section 472.032, Transportation Code, is
 amended to read as follows:
 Sec. 472.032. VOTING PROXIES BY POLICY BOARD MEMBERS
 PROHIBITED. (a) A policy board may not allow its members to vote by
 proxy [provide in its bylaws for appointment of voting proxies by
 its members].
 (b) [A proxy appointed under Subsection (a):
 [(1)     acts on behalf of and under the supervision of the
 policy board member who appointed the proxy;
 [(2) must be appointed in writing; and
 [(3)     is authorized to vote for the policy board member
 who appointed the proxy to the extent the member has given the proxy
 the member's voting power.
 [(c)] A legislative member of a policy board may not be
 counted as absent at a meeting of the policy board during a
 legislative session.
 [(d)     A legislative member of a policy board may only appoint
 a proxy under Subsection (a) who is:
 [(1)     the legislative member's employee or staff
 member;
 [(2)     a person related to the member within the second
 degree by consanguinity, as determined under Subchapter B, Chapter
 573, Government Code, who is not required to register as a lobbyist
 under Chapter 305, Government Code;
 [(3)     another legislative member of the policy board;
 or
 [(4) a locally elected official.]
 ARTICLE 2A. INSPECTOR GENERAL
 SECTION 2A.01. Chapter 201, Transportation Code, is amended
 by adding Subchapter F-1 to read as follows:
 SUBCHAPTER F-1.  INSPECTOR GENERAL
 Sec. 201.451.  INSPECTOR GENERAL. (a) The commission shall
 appoint an inspector general who reports to the commission.
 (b) The inspector general shall:
 (1)  audit the department's financial condition and the
 efficiency of its business practices;
 (2)  evaluate the efficiency of the department's
 administrative practices and performance, including business plan
 performance measures, relationships with metropolitan planning
 organizations, performance of department districts and offices,
 and the need for standardization;
 (3)  identify the need and opportunities for reductions
 in staff and the need for a better or differently skilled workforce;
 (4)  study the implementation of and improvements to a
 commitment-based budget or business plan based on outcomes;
 (5)  identify ways to streamline the environmental
 approval process;
 (6)  evaluate compliance with applicable laws and
 legislative intent; and
 (7)  evaluate the efficient use of available funding,
 personnel, equipment, and office space.
 (c)  Notwithstanding Subsection (a), the Transportation
 Legislative Oversight Committee under Chapter 205 shall appoint the
 inspector general under this section. If appointed under this
 subsection, the inspector general is subject to removal for good
 cause by the commission. If the supreme court of this state
 determines that an appointment under this subsection violates
 Section 1, Article II, or Section 12, Article IV, Texas
 Constitution, the commission shall appoint the inspector general
 from a list provided by the Transportation Legislative Oversight
 Committee. This subsection expires August 31, 2013.
 Sec. 201.452.  COOPERATION AND COORDINATION WITH STATE
 AUDITOR. (a) An inspector general's review does not take
 precedence over the state auditor's review.
 (b)  The inspector general may meet with the state auditor's
 office to coordinate a review conducted under this subchapter,
 share information, or schedule work plans.
 (c)  In addition to the authority in Chapter 321, Government
 Code, the state auditor is entitled to access all information
 maintained by the inspector general, including vouchers,
 electronic data, internal records, and other information.
 (d)  Any information obtained or provided by the state
 auditor under this section is confidential and not subject to
 disclosure under Chapter 552, Government Code.
 Sec. 201.453.  FINAL REVIEW REPORTS. (a) The inspector
 general shall prepare a final report for each review conducted
 under Section 201.451. The final report must include:
 (1)  a summary of the activities performed by the
 inspector general in conducting the review; and
 (2)  a description of any findings in connection with a
 review conducted under Section 201.451.
 (b)  An inspector general's final reports are subject to
 disclosure under Chapter 552, Government Code.
 (c)  Unless otherwise prohibited by this chapter or other
 law, the inspector general shall deliver a copy of each final report
 that concerns the implementation or administration of a state or
 federally funded program to:
 (1) the commission and the executive director;
 (2) the governor;
 (3) the lieutenant governor;
 (4) the speaker of the house of representatives;
 (5) the state auditor; and
 (6) the appropriate legislative oversight committees.
 SECTION 2A.02. The Texas Transportation Commission or the
 Transportation Legislative Oversight Committee, as applicable,
 shall appoint an inspector general as required by Section 201.451,
 Transportation Code, as added by this Act, not later than December
 1, 2009.
 ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS
 SECTION 3.01. (a) Section 201.801, Transportation Code, is
 amended to read as follows:
 Sec. 201.801. [INFORMATION ABOUT DEPARTMENT;] COMPLAINTS.
 (a) The department shall maintain a system to promptly and
 efficiently act on complaints filed with the department. The
 department shall maintain information about the parties to and the
 subject matter of a complaint and a summary of the results of the
 review or investigation of the complaint and the disposition of the
 complaint.
 (b) The department shall make information available
 describing its procedures for complaint investigation and
 resolution [prepare information of public interest describing the
 functions of the department and the department's procedures by
 which a complaint is filed with the department and resolved by the
 department. The department shall make the information available to
 the public and appropriate state agencies].
 [(b)     The commission by rule shall establish methods by which
 consumers and service recipients are notified of the department's
 name, mailing address, and telephone number for directing
 complaints to the department. The commission may provide for that
 notification:
 [(1)     on each registration form, application, or
 written contract for services of an individual or entity regulated
 by the department;
 [(2)     on a sign prominently displayed in the place of
 business of each individual or entity regulated by the department;
 or
 [(3)     in a bill for service provided by an individual or
 entity regulated by the department.]
 (c) [The department shall:
 [(1)     keep an information file about each written
 complaint filed with the department that the department has the
 authority to resolve; and
 [(2)     provide the person who filed the complaint, and
 each person or entity that is the subject of the complaint,
 information about the department's policies and procedures
 relating to complaint investigation and resolution.
 [(d)] The department[, at least quarterly and until final
 disposition of a written complaint that is filed with the
 department and that the department has the authority to resolve,]
 shall periodically notify the parties to the complaint of its
 status until final disposition unless the notice would jeopardize
 an undercover investigation.
 (d)  The commission shall adopt rules applicable to each
 division and district to establish a process to act on complaints
 filed with the department [(e)     With regard to each complaint filed
 with the department, the department shall keep the following
 information:
 [(1) the date the complaint is filed;
 [(2) the name of the person filing the complaint;
 [(3) the subject matter of the complaint;
 [(4)     a record of each person contacted in relation to
 the complaint;
 [(5)     a summary of the results of the review or
 investigation of the complaint; and
 [(6)     if the department takes no action on the
 complaint, an explanation of the reasons that no action was taken].
 (e)  The department shall develop a standard form for
 submitting a complaint and make the form available on its Internet
 website.  The department shall establish a method to submit
 complaints electronically.
 (f)  The department shall develop a method for analyzing the
 sources and types of complaints and violations and establish
 categories for the complaints and violations. The department shall
 use the analysis to focus its information and education efforts on
 specific problem areas identified through the analysis.
 (g) The department shall:
 (1) compile:
 (A)  detailed statistics and analyze trends on
 complaint information, including:
 (i) the nature of the complaints;
 (ii) their disposition; and
 (iii)  the length of time to resolve
 complaints; and
 (B)  complaint information on a district and a
 divisional basis; and
 (2)  report the information on a monthly basis to the
 division directors, office directors, and district engineers and on
 a quarterly basis to the commissioner.
 (b) The Texas Department of Transportation shall adopt
 rules under Section 201.801, Transportation Code, as amended by
 this section, not later than March 1, 2010.
 SECTION 3.02. Subchapter J, Chapter 201, Transportation
 Code, is amended by adding Section 201.811 to read as follows:
 Sec. 201.811.  PUBLIC INVOLVEMENT POLICY.  (a)  The
 department shall develop and implement a policy for public
 involvement that guides and encourages public involvement with the
 department.  The policy must:
 (1)  provide for the use of public involvement
 techniques that target different groups and individuals;
 (2)  encourage continuous contact between the
 department and persons outside the department throughout the
 transportation decision-making process;
 (3) require the department to make efforts toward:
 (A)  clearly tying public involvement to
 decisions made by the department; and
 (B)  providing clear information to the public
 about specific outcomes of public input; and
 (4)  apply to all public input with the department,
 including input:
 (A) on statewide transportation policy-making;
 (B)  in connection with the environmental process
 relating to specific projects; and
 (C) into the department's rulemaking procedures.
 (b)  The department shall document the ratio of positive
 public input to negative public input regarding all environmental
 impact statements as expressed by the public through the
 department's public involvement process. The department shall:
 (1)  present this information to the commissioner in an
 open meeting; and
 (2)  report this information on the department's
 Internet website in a timely manner.
 SECTION 3.03. (a) Section 228.004, Transportation Code, is
 amended to read as follows:
 Sec. 228.004. [PROMOTION OF] TOLL PROJECT INFORMATION.
 (a) The department may, notwithstanding Chapter 2113, Government
 Code, engage in marketing, advertising, and other activities to
 provide information relating to the status of pending or ongoing
 [promote the development and use of] toll projects and may enter
 into contracts or agreements necessary to procure marketing,
 advertising, or informational [other promotional] services from
 outside service providers.
 (b)  This section does not authorize the department to engage
 in marketing, advertising, or other activities for the purpose of
 influencing public opinion about the use of toll roads or the use of
 tolls as a financial mechanism.
 (b) The change in law made by this section applies only to a
 contract or agreement entered into or renewed under Section
 228.004, Transportation Code, as amended by this section, on or
 after the effective date of this Act. A contract or agreement
 entered into or renewed under that section before the effective
 date of this Act is governed by the law in effect immediately before
 that date, and that law is continued in effect for that purpose.
 SECTION 3.04. Section 228.201(a), Transportation Code, is
 amended to read as follows:
 (a) The [Except as provided by Section 228.2015, the]
 department may not operate a nontolled state highway or a segment of
 a nontolled state highway as a toll project, and may not transfer a
 highway or segment to another entity for operation as a toll
 project, unless:
 (1) the commission by order designated the highway or
 segment as a toll project before the contract to construct the
 highway or segment was awarded;
 (2) the highway or segment was open to traffic as a
 turnpike project on or before September 1, 2005;
 (3) the project was designated as a toll project in a
 plan or program of a metropolitan planning organization on or
 before September 1, 2005;
 (4) the highway or segment is reconstructed so that
 the number of nontolled lanes on the highway or segment is greater
 than or equal to the number in existence before the reconstruction;
 (5) a facility that has access, function, and control
 devices similar to the converted highway or segment before
 conversion is constructed adjacent to the highway or segment so
 that the number of nontolled lanes on the converted highway or
 segment and the adjacent facility together is greater than or equal
 to the number in existence on the converted highway or segment
 before the conversion; or
 (6) subject to Subsection (b), the highway or segment
 was open to traffic as a high-occupancy vehicle lane on May 1,
 2005[; or
 [(7)     the commission converts the highway or segment to
 a toll facility by:
 [(A)     making the determination required by
 Section 228.202;
 [(B)     conducting the hearing required by Section
 228.203; and
 [(C)     obtaining county and voter approval as
 required by Sections 228.207 and 228.208].
 SECTION 3.05. Sections 228.202, 228.203, 228.207, and
 228.208, Transportation Code, are repealed.
 ARTICLE 4. CONTRACTING FUNCTIONS
 SECTION 4.01. Subchapter A, Chapter 223, Transportation
 Code, is amended by adding Section 223.017 to read as follows:
 Sec. 223.017.  DESIGN-BUILD CONTRACTS FOR NONTOLLED HIGHWAY
 PROJECTS. (a)  In this section, "design-build contract" means an
 agreement with a private entity for the design and construction,
 rehabilitation, expansion, or improvement of a highway project but
 does not include the financing or operation of the highway.
 (b)  The department may enter into a design-build contract
 for a nontolled highway project.
 (c)  Notwithstanding Section 223.0041, rules adopted under
 this section must be consistent in all procedural aspects,
 including limitations, with the design-build procedures for local
 governmental entities under Subchapter J, Chapter 271, Local
 Government Code.
 (c-1)  Money disbursed by the department for design-build
 contracts under this section may not be included in the amount
 required to be spent in a biennium for engineering and design
 contracts under Section 223.041.
 (d)  The department shall adopt rules specifying the
 conditions under which a design-build contract may be considered.
 In developing rules the department must address:
 (1) the size and complexity of an eligible project;
 (2)  the time constraints for delivery of an eligible
 project;
 (3)  the level and training of the staff required to
 manage an eligible project; and
 (4) other factors the department considers important.
 SECTION 4.02. (a) Subchapter E, Chapter 223,
 Transportation Code, is amended by adding Section 223.211 to read
 as follows:
 Sec. 223.211.  APPROVAL AND CERTIFICATION. A comprehensive
 development agreement, including a facility agreement under a
 comprehensive development agreement, under which a private entity
 will operate a toll project or be entitled to receive revenue from
 the project must be:
 (1)  reviewed by the attorney general for legal
 sufficiency under Section 371.051, as added by Chapter 264 (S.B.
 792), Acts of the 80th Legislature, Regular Session, 2007, and
 signed by the attorney general, if approved;
 (2)  reviewed by the comptroller for financial
 viability and signed and certified by the comptroller if approved;
 and
 (3) signed by the commissioner.
 (b) The change in law made by Section 223.211,
 Transportation Code, as added by this section, applies only to a
 comprehensive development agreement entered into on or after the
 effective date of this Act.
 ARTICLE 5. REGULATION OF MOTOR VEHICLE DEALERS, SALVAGE VEHICLE
 DEALERS, AND HOUSEHOLD GOODS CARRIERS
 SECTION 5.01. (a) Section 643.153, Transportation Code, is
 amended by amending Subsection (b) and adding Subsections (c), (h),
 and (i) to read as follows:
 (b) The department may adopt rules necessary to ensure that
 a customer of a motor carrier transporting household goods is
 protected from deceptive or unfair practices and unreasonably
 hazardous activities. The rules must:
 (1) establish a formal process for resolving a dispute
 over a fee or damage;
 (2) require a motor carrier to indicate clearly to a
 customer whether an estimate is binding or nonbinding and disclose
 the maximum price a customer could be required to pay;
 (3) create a centralized process for making complaints
 about a motor carrier that also allows a customer to inquire about a
 carrier's complaint record; [and]
 (4) require a motor carrier transporting household
 goods to list a place of business with a street address in this
 state and the carrier's registration number issued under this
 article in any print advertising published in this state; and
 (5)  require a motor carrier transporting household
 goods to submit to the department, at the time of the original motor
 carrier registration and at the renewal of the registration,
 documentation on whether the motor carrier:
 (A)  regularly requests and obtains criminal
 history record information on its employees under Chapter 145,
 Civil Practice and Remedies Code; and
 (B)  uses the criminal history record information
 to exclude from employment persons who have committed a serious
 criminal offense.
 (c)  The department shall make available to the public on the
 department's Internet website the information received under
 Subsection (b)(5) to allow members of the public to make an informed
 choice when selecting a motor carrier to transport household goods.
 (h)  Subject to Subsection (i), the department may order a
 motor carrier that transports household goods to pay a refund to a
 customer as provided in an agreement resulting from an informal
 settlement instead of or in addition to imposing an administrative
 penalty under this chapter.
 (i)  The amount of a refund ordered as provided in an
 agreement resulting from an informal settlement may not exceed the
 amount the customer paid to the motor carrier for a service or the
 amount the customer paid for an item damaged by the motor carrier,
 without requiring an estimation of the actual cost of the damage.
 The department may not require payment of other damages or estimate
 harm in a refund order.
 (b) The change in law made by Sections 643.153(h) and (i),
 Transportation Code, as added by this section, applies only to an
 agreement to transport household goods entered into on or after the
 effective date of this Act. An agreement to transport household
 goods entered into before the effective date of this Act is governed
 by the law in effect immediately before that date, and that law is
 continued in effect for that purpose.
 SECTION 5.02. (a) Section 643.251(b), Transportation Code,
 is amended to read as follows:
 (b) Except as provided by this section, the amount of an
 administrative penalty may not exceed $5,000. If it is found that
 the motor carrier knowingly committed the violation, the penalty
 may not exceed $15,000. [If it is found that the motor carrier
 knowingly committed multiple violations, the aggregate penalty for
 the multiple violations may not exceed $30,000.] Each day a
 violation continues or occurs is a separate violation for purposes
 of imposing a penalty.
 (b) The change in law made by this section to Section
 643.251, Transportation Code, applies only to a violation committed
 by a motor carrier on or after the effective date of this Act. For
 purposes of this subsection, a violation was committed before the
 effective date of this Act if any element of the violation was
 committed before that date. A violation committed by a motor
 carrier before the effective date of this Act is covered by the law
 in effect on the date the violation was committed, and the former
 law is continued in effect for that purpose.
 SECTION 5.03. Subchapter F, Chapter 643, Transportation
 Code, is amended by adding Sections 643.256 and 643.257 to read as
 follows:
 Sec. 643.256.  SUMMARY SUSPENSION. (a)  The department may
 summarily suspend the registration of a motor carrier registered
 under this chapter if the motor carrier's failure to comply with
 this chapter or a rule adopted under this chapter is determined by
 the department to constitute a continuing and imminent threat to
 the public safety and welfare.
 (b)  To initiate a proceeding to take action under Subsection
 (a), the department must serve notice on the motor carrier. The
 notice must:
 (1) state the grounds for summary suspension;
 (2)  be personally served on the motor carrier or sent
 to the motor carrier by certified or registered mail, return
 receipt requested, to the motor carrier's mailing address as it
 appears in the department's records; and
 (3)  inform the motor carrier of the right to a hearing
 on the suspension.
 (c)  The suspension is effective on the date notice is
 personally served or received by mail. The motor carrier is
 entitled to appeal the suspension in the manner provided by Section
 643.2525 for the appeal of an order of the board.
 Sec. 643.257.  EMERGENCY CEASE AND DESIST ORDER.  (a)  If it
 appears to the board that a motor carrier who is not registered to
 transport household goods for compensation under Section 643.051 is
 violating this chapter, a rule adopted under this chapter, or
 another state statute or rule relating to the transportation of
 household goods and the board determines that the unauthorized
 activity constitutes a clear, imminent, or continuing threat to the
 public health and safety, the board may:
 (1)  issue an emergency cease and desist order
 prohibiting the motor carrier from engaging in the activity; and
 (2)  report the activity to a local law enforcement
 agency or the attorney general for prosecution.
 (b) An order issued under Subsection (a) must:
 (1)  be delivered on issuance to the motor carrier
 affected by the order by personal delivery or registered or
 certified mail, return receipt requested, to the motor carrier's
 last known address;
 (2)  state the acts or practices alleged to be an
 unauthorized activity and require the motor carrier immediately to
 cease and desist from the unauthorized activity; and
 (3)  contain a notice that a request for hearing may be
 filed under this section.
 (c)  A motor carrier against whom an emergency cease and
 desist order is directed may request a hearing before the 11th day
 after the date it is served on the motor carrier.  If the motor
 carrier does not request a hearing in that time, the order is final
 and nonappealable as to that motor carrier.  A request for a
 hearing must:
 (1) be in writing and directed to the board; and
 (2)  state the grounds for the request to set aside or
 modify the order.
 (d)  On receiving a request for a hearing, the board shall
 serve notice of the time and place of the hearing by personal
 delivery or registered or certified mail, return receipt
 requested.  The hearing must be held not later than the 10th day
 after the date the board receives the request for a hearing unless
 the parties agree to a later hearing date.  A hearing under this
 subsection is subject to Chapter 2001, Government Code.
 (e)  After the hearing, the board shall affirm, modify, or
 set aside wholly or partly the emergency cease and desist order.  An
 order affirming or modifying the emergency cease and desist order
 is immediately final for purposes of enforcement and appeal.
 (f)  An order under this section continues in effect unless
 the order is stayed by the board.  The board may impose any
 condition before granting a stay of the order.
 (g)  The board may release to the public a final cease and
 desist order issued under this section or information regarding the
 existence of the order if the board determines that the release
 would enhance the effective enforcement of the order or will serve
 the public interest.
 (h)  A violation of an order issued under this section
 constitutes additional grounds for imposing an administrative
 penalty under this chapter.
 SECTION 5.04. Section 2301.654, Occupations Code, is
 amended to read as follows:
 Sec. 2301.654. PROBATION. If a suspension of a license is
 probated, the board may:
 (1) require the license holder to report regularly to
 the board on matters that are the basis of the probation; [or]
 (2) limit activities to those prescribed by the board;
 or
 (3)  require the license holder to obtain specialized
 training so that the license holder attains a degree of skill
 satisfactory to the board in those areas that are the basis of the
 probation.
 SECTION 5.05. (a) Subchapter Q, Chapter 2301, Occupations
 Code, is amended by adding Sections 2301.807 and 2301.808 to read as
 follows:
 Sec. 2301.807.  ADMINISTRATIVE PENALTY.  (a)  The board may
 impose an administrative penalty on a person licensed under this
 chapter who violates this chapter or a rule or order adopted under
 this chapter.
 (b)  The amount of an administrative penalty imposed under
 this section may not exceed $5,000.  Each day a violation continues
 or occurs is a separate violation for the purpose of imposing a
 penalty.  The amount of the penalty shall be based on:
 (1)  the seriousness of the violation, including the
 nature, circumstances, extent, and gravity of the violation;
 (2)  the economic harm to property or the environment
 caused by the violation;
 (3) the history of previous violations;
 (4) the amount necessary to deter a future violation;
 (5) the threat to the public safety and welfare;
 (6) efforts to correct the violation; and
 (7) any other matter that justice may require.
 (c)  The board by rule shall adopt a schedule of
 administrative penalties based on the criteria listed in Subsection
 (b) for violations subject to an administrative penalty under this
 section to ensure that the amount of a penalty imposed is
 appropriate to the violation.
 (d)  The enforcement of an administrative penalty may be
 stayed during the time the order is under judicial review if the
 person pays the penalty to the clerk of the court or files a
 supersedeas bond with the court in the amount of the penalty.  A
 person who cannot afford to pay the penalty or file the bond may
 stay the enforcement by filing an affidavit in the manner required
 by the Texas Rules of Civil Procedure for a party who cannot afford
 to file security for costs, subject to the right of the board to
 contest the affidavit as provided by those rules.
 (e)  The attorney general may sue to collect an
 administrative penalty imposed under this section. In the suit the
 attorney general may recover, on behalf of the state, the
 reasonable expenses incurred in obtaining the penalty, including
 investigation and court costs, reasonable attorney's fees, witness
 fees, and other expenses.
 (f)  An administrative penalty collected under this section
 shall be deposited in the general revenue fund.
 (g)  A proceeding to impose an administrative penalty under
 this section is a contested case under Chapter 2001, Government
 Code.
 Sec. 2301.808.  REFUND.  (a)  Subject to Subsection (b), the
 board may order a motor vehicle dealer to pay a refund to a consumer
 as provided in an agreement resulting from an informal settlement
 instead of or in addition to imposing an administrative penalty
 under this chapter.
 (b)  The amount of a refund ordered as provided in an
 agreement resulting from an informal settlement may not exceed the
 amount the consumer paid to the motor vehicle dealer.  The board may
 not require payment of other damages or estimate harm in a refund
 order.
 (b) Subchapter H, Chapter 2302, Occupations Code, is
 amended by adding Section 2302.352 to read as follows:
 Sec. 2302.352.  ADMINISTRATIVE PENALTY.  (a)  The board may
 impose an administrative penalty on a salvage vehicle dealer
 licensed under this chapter who violates this chapter or a rule or
 order adopted under this chapter.
 (b)  The amount of an administrative penalty imposed under
 this section may not exceed $5,000.  Each day a violation continues
 or occurs is a separate violation for the purpose of imposing a
 penalty. The amount of the penalty shall be based on:
 (1)  the seriousness of the violation, including the
 nature, circumstances, extent, and gravity of the violation;
 (2)  the economic harm to property or the environment
 caused by the violation;
 (3) the history of previous violations;
 (4) the amount necessary to deter a future violation;
 (5) the threat to the public safety and welfare;
 (6) efforts to correct the violation; and
 (7) any other matter that justice may require.
 (c)  The board by rule shall adopt a schedule of
 administrative penalties based on the criteria listed in Subsection
 (b) for violations subject to an administrative penalty under this
 section to ensure that the amount of a penalty imposed is
 appropriate to the violation.
 (d)  The enforcement of an administrative penalty may be
 stayed during the time the order is under judicial review if the
 person pays the penalty to the clerk of the court or files a
 supersedeas bond with the court in the amount of the penalty.  A
 person who cannot afford to pay the penalty or file the bond may
 stay the enforcement by filing an affidavit in the manner required
 by the Texas Rules of Civil Procedure for a party who cannot afford
 to file security for costs, subject to the right of the board to
 contest the affidavit as provided by those rules.
 (e)  The attorney general may sue to collect an
 administrative penalty imposed under this section. In the suit the
 attorney general may recover, on behalf of the state, the
 reasonable expenses incurred in obtaining the penalty, including
 investigation and court costs, reasonable attorney's fees, witness
 fees, and other expenses.
 (f)  An administrative penalty collected under this section
 shall be deposited in the general revenue fund.
 (g)  A proceeding to impose an administrative penalty under
 this section is a contested case under Chapter 2001, Government
 Code.
 (c) The change in law made by Section 2301.808, Occupations
 Code, as added by this section, applies only to a motor vehicle
 purchased or leased on or after the effective date of this Act. A
 motor vehicle purchased or leased before the effective date of this
 Act is governed by the law in effect immediately before that date,
 and that law is continued in effect for that purpose.
 ARTICLE 6. REGULATION OF OUTDOOR ADVERTISING
 SECTION 6.01. Section 391.004, Transportation Code, is
 amended to read as follows:
 Sec. 391.004. TEXAS HIGHWAY BEAUTIFICATION FUND ACCOUNT.
 The Texas highway beautification fund account is an account in the
 general revenue fund. Money the commission receives under this
 chapter shall be deposited to the credit of the Texas highway
 beautification fund account. The commission shall use money in the
 Texas highway beautification fund account to administer this
 chapter and Chapter 394.
 SECTION 6.02. (a) Subchapter A, Chapter 391,
 Transportation Code, is amended by adding Section 391.006 to read
 as follows:
 Sec. 391.006.  COMPLAINTS; RECORDS. (a)  The department by
 rule shall establish procedures for accepting and resolving written
 complaints related to outdoor advertising under this chapter.  The
 rules must include:
 (1)  a process to make information available describing
 its procedures for complaint investigation and resolution,
 including making information about the procedures available on the
 department's Internet website;
 (2)  a simple form for filing complaints with the
 department;
 (3)  a system to prioritize complaints so that the most
 serious complaints receive attention before less serious
 complaints; and
 (4)  a procedure for compiling and reporting detailed
 annual statistics about complaints.
 (b)  The department shall provide to each person who files a
 written complaint with the department, and to each person who is the
 subject of a complaint, information about the department's policies
 and procedures relating to complaint investigation and resolution.
 (c)  The department shall keep an information file about each
 written complaint filed with the department that the department has
 authority to resolve. The department shall keep the following
 information for each complaint for the purpose of enforcing this
 chapter:
 (1) the date the complaint is filed;
 (2) the name of the person filing the complaint;
 (3) the subject matter of the complaint;
 (4)  each person contacted in relation to the
 complaint;
 (5)  a summary of the results of the review or
 investigation of the complaint; and
 (6)  if the department does not take action on the
 complaint, an explanation of the reasons that action was not taken.
 (d)  If a written complaint is filed with the department that
 the department has authority to resolve, the department, at least
 quarterly and until final disposition of the complaint, shall
 notify the parties to the complaint of the status of the complaint
 unless the notice would jeopardize an ongoing department
 investigation.
 (b) The Texas Transportation Commission shall adopt rules
 under Section 391.006, Transportation Code, as added by this
 section, not later than September 1, 2010.
 SECTION 6.03. Subchapter A, Chapter 391, Transportation
 Code, is amended by adding Section 391.007 to read as follows:
 Sec. 391.007.  REQUEST FOR HEARING. (a)  If the department
 revokes a permit issued under this chapter, denies the application
 for a permit submitted under this chapter, or issues an
 administrative penalty under this chapter, the department shall
 send written notice by certified mail to the affected person.
 (b)  Not later than the 30th day after the date a person
 receives notice under Subsection (a), the person may make a written
 request to the commission for an administrative hearing to appeal:
 (1)  the denial of a permit application submitted under
 this chapter;
 (2)  the revocation of a permit issued under this
 chapter; or
 (3)  the imposition of an administrative penalty under
 this chapter.
 (c)  If a person requests a hearing under this section, the
 hearing shall be conducted by the State Office of Administrative
 Hearings. Chapter 2001, Government Code, applies to a proceeding
 under this chapter to the extent consistent with this chapter.
 (d)  The State Office of Administrative Hearings shall
 consider the department's applicable substantive rules and
 policies when conducting a hearing under this section.
 (e)  After a hearing conducted under this section, the
 administrative law judge shall:
 (1) make findings of fact and conclusions of law; and
 (2) promptly issue a decision to the commission.
 SECTION 6.04. Subchapter B, Chapter 391, Transportation
 Code, is amended by adding Section 391.0331 to read as follows:
 Sec. 391.0331.  COSTS OF REMOVAL OF CERTAIN OUTDOOR
 ADVERTISING IN MUNICIPALITY.  If outdoor advertising located in a
 municipality or in the extraterritorial jurisdiction of a
 municipality that regulates outdoor advertising in its
 extraterritorial jurisdiction is required to be removed because of
 the widening, construction, or reconstruction of a road to which
 this chapter applies and if relocation of the outdoor advertising
 would be allowed under commission rules but is prohibited by
 charter, ordinance, or a decision of the municipality, the
 municipality shall pay just compensation to:
 (1)  the owner for the right, title leasehold, and
 interest in the outdoor advertising; and
 (2)  the owner or, if appropriate, the lessee of the
 real property on which the outdoor advertising is located for the
 right to erect and maintain the outdoor advertising.
 SECTION 6.05. Section 391.035(c), Transportation Code, is
 amended to read as follows:
 (c) A penalty collected under this section shall be
 deposited to the credit of the Texas highway beautification [state
 highway] fund account if collected by the attorney general and to
 the credit of the county road and bridge fund of the county in which
 the violation occurred if collected by a district or county
 attorney.
 SECTION 6.06. Subchapter B, Chapter 391, Transportation
 Code, is amended by adding Section 391.0355 to read as follows:
 Sec. 391.0355.  ADMINISTRATIVE PENALTY. (a)  In lieu of a
 suit to collect a civil penalty, the commission, after notice and an
 opportunity for a hearing before the commission, may impose an
 administrative penalty against a person who violates this chapter
 or a rule adopted by the commission under this chapter. Each day a
 violation continues is a separate violation.
 (b)  The amount of the administrative penalty may not exceed
 the maximum amount of a civil penalty under Section 391.035.
 (c)  A proceeding under this section is a contested case
 under Chapter 2001, Government Code.
 (d)  Judicial review of an appeal of an administrative
 penalty imposed under this section is under the substantial
 evidence rule.
 (e)  An administrative penalty collected under this section
 shall be deposited to the credit of the Texas highway
 beautification fund account.
 SECTION 6.07. Section 391.063, Transportation Code, is
 amended to read as follows:
 Sec. 391.063. LICENSE FEE. The commission may set the
 amount of a license fee according to a scale graduated by the number
 of units of outdoor advertising and number of off-premise signs
 under Chapter 394 owned by a license applicant.
 SECTION 6.08. Section 391.064, Transportation Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  A person is not required to file with the commission a
 surety bond for outdoor advertising under this chapter if the
 person files with the commission a surety bond for an off-premise
 sign under Chapter 394.
 SECTION 6.09. Section 391.065(b), Transportation Code, is
 amended to read as follows:
 (b) For the efficient management and administration of this
 chapter and to reduce the number of employees required to enforce
 this chapter, the commission shall adopt rules for issuing
 standardized forms that are for submission by license holders and
 applicants and that provide for an accurate showing of the number,
 location, or other information required by the commission for each
 license holder's or applicant's outdoor advertising or off-premise
 signs under Chapter 394.
 SECTION 6.10. Section 391.066, Transportation Code, is
 amended by adding Subsections (d) and (e) to read as follows:
 (d)  The commission may deny the renewal of a license
 holder's license if the license holder has not complied with the
 permit requirements of this chapter or Chapter 394.
 (e)  The commission by rule shall adopt procedures for the
 suspension, revocation, or denial of a renewal of a license under
 this section, or the assessment of an administrative penalty under
 Section 391.0355. The procedures must ensure that the enforcement
 action is appropriate for the violation for which it is taken.  The
 rules adopting the procedures must require the commission to
 consider:
 (1)  the seriousness of the violation, including the
 nature, circumstances, extent, and gravity of the violation;
 (2)  the economic harm to property or the environment
 caused by the violation;
 (3) the history of previous violations;
 (4)  for an administrative penalty, the amount
 necessary to deter future violations;
 (5)  the threat to the public safety and welfare posed
 by the violation;
 (6) efforts to correct the violation; and
 (7) any other matter that justice may require.
 SECTION 6.11. Subchapter C, Chapter 391, Transportation
 Code, is amended by adding Section 391.0661 to read as follows:
 Sec. 391.0661.  APPLICABILITY OF LICENSE. In addition to
 authorizing a person to erect or maintain outdoor advertising, a
 license issued under this chapter authorizes a person to erect or
 maintain an off-premise sign under Chapter 394.
 SECTION 6.12. Section 391.254(c), Transportation Code, is
 amended to read as follows:
 (c) A civil penalty collected by the attorney general under
 this section shall be deposited to the credit of the Texas highway
 beautification [state highway] fund account.
 SECTION 6.13. Section 394.005, Transportation Code, is
 amended to read as follows:
 Sec. 394.005. DISPOSITION OF FEES. Money the commission
 receives [A registration fee collected] under this chapter [Section
 394.048 by the commission] shall be deposited to the credit of the
 Texas highway beautification [state highway] fund account.
 SECTION 6.14. (a) Subchapter A, Chapter 394,
 Transportation Code, is amended by adding Section 394.006 to read
 as follows:
 Sec. 394.006.  COMPLAINTS; RECORDS.  (a)  The department by
 rule shall establish procedures for accepting and resolving written
 complaints related to signs under this chapter. The rules must
 include:
 (1)  a process to make information available describing
 its procedures for complaint investigation and resolution,
 including making information about the procedures available on the
 department's Internet website;
 (2)  a simple form for filing complaints with the
 department;
 (3)  a system to prioritize complaints so that the most
 serious complaints receive attention before less serious
 complaints; and
 (4)  a procedure for compiling and reporting detailed
 annual statistics about complaints.
 (b)  The department shall provide to each person who files a
 written complaint with the department, and to each person who is the
 subject of a complaint, information about the department's policies
 and procedures relating to complaint investigation and resolution.
 (c)  The department shall keep an information file about each
 written complaint filed with the department that the department has
 authority to resolve. The department shall keep the following
 information for each complaint for the purpose of enforcing this
 chapter:
 (1) the date the complaint is filed;
 (2) the name of the person filing the complaint;
 (3) the subject matter of the complaint;
 (4)  each person contacted in relation to the
 complaint;
 (5)  a summary of the results of the review or
 investigation of the complaint; and
 (6)  if the department does not take action on the
 complaint, an explanation of the reasons that action was not taken.
 (d)  If a written complaint is filed with the department that
 the department has authority to resolve, the department, at least
 quarterly and until final disposition of the complaint, shall
 notify the parties to the complaint of the status of the complaint
 unless the notice would jeopardize an ongoing department
 investigation.
 (b) The Texas Transportation Commission shall adopt rules
 under Section 394.006, Transportation Code, as added by this
 section, not later than September 1, 2010.
 SECTION 6.15. Subchapter A, Chapter 394, Transportation
 Code, is amended by adding Section 394.007 to read as follows:
 Sec. 394.007.  COSTS FOR REMOVAL OF SIGNS IN CERTAIN
 MUNICIPALITIES.  If a sign located in a municipality or in the
 extraterritorial jurisdiction of a municipality that regulates
 signs in its extraterritorial jurisdiction is required to be
 removed because of the widening, construction, or reconstruction of
 a road to which this chapter applies and if relocation of the sign
 would be allowed under commission rules but is prohibited by
 charter, ordinance, or a decision of the municipality, the
 municipality shall pay just compensation to:
 (1)  the owner for the right, title leasehold, and
 interest in the sign; and
 (2)  the owner or, if appropriate, the lessee of the
 real property on which the sign is located for the right to erect
 and maintain the sign.
 SECTION 6.16. The heading to Subchapter B, Chapter 394,
 Transportation Code, is amended to read as follows:
 SUBCHAPTER B. LICENSE AND PERMIT FOR OFF-PREMISE SIGN
 SECTION 6.17. (a) Subchapter B, Chapter 394,
 Transportation Code, is amended by adding Sections 394.0201,
 394.0202, 394.0203, 394.0204, 394.0205, 394.0206, 394.0207,
 394.027, 394.028, and 394.029 to read as follows:
 Sec. 394.0201.  ERECTING OFF-PREMISE SIGN WITHOUT LICENSE;
 OFFENSE. (a)  A person commits an offense if the person wilfully
 erects or maintains an off-premise sign on a rural road without a
 license under this subchapter.
 (b)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $500 or more than $1,000. Each
 day of the proscribed conduct is a separate offense.
 (c)  A person is not required to obtain a license to erect or
 maintain an on-premise sign.
 Sec. 394.0202.  ISSUANCE AND PERIOD OF LICENSE. (a)  The
 commission shall issue a license to a person who:
 (1)  files with the commission a completed application
 form within the time specified by the commission;
 (2) pays the appropriate license fee; and
 (3) files with the commission a surety bond.
 (b) A license may be issued for one year or longer.
 (c)  At least 30 days before the date on which a person's
 license expires, the commission shall notify the person of the
 impending expiration. The notice must be in writing and sent to the
 person's last known address according to the records of the
 commission.
 Sec. 394.0203.  LICENSE FEE. The commission may set the
 amount of a license fee according to a scale graduated by the number
 of off-premise signs and units of outdoor advertising under Chapter
 391 owned by a license applicant.
 Sec. 394.0204.  SURETY BOND. (a)  The surety bond required
 of an applicant for a license under Section 394.0202 must be:
 (1)  in the amount of $2,500 for each county in the
 state in which the person erects or maintains an off-premise sign;
 and
 (2)  payable to the commission for reimbursement for
 removal costs of an off-premise sign that the license holder
 unlawfully erects or maintains.
 (b)  A person may not be required to provide more than
 $10,000 in surety bonds.
 (c)  A person is not required to file with the commission a
 surety bond for an off-premise sign under this chapter if the person
 files with the commission a surety bond for outdoor advertising
 under Chapter 391.
 Sec. 394.0205.  RULES; FORMS. (a)  The commission may adopt
 rules to implement Sections 394.0201(a), 394.0202, 394.0203,
 394.0204, and 394.0206.
 (b)  For the efficient management and administration of this
 chapter and to reduce the number of employees required to enforce
 this chapter, the commission shall adopt rules for issuing
 standardized forms that are for submission by license holders and
 applicants and that provide for an accurate showing of the number,
 location, or other information required by the commission for each
 license holder's or applicant's off-premise signs or outdoor
 advertising under Chapter 391.
 Sec. 394.0206.  REVOCATION OR SUSPENSION OF LICENSE; APPEAL.
 (a)  The commission may revoke or suspend a license issued under
 this subchapter or place on probation a license holder whose
 license is suspended if the license holder violates this chapter or
 a rule adopted under this chapter. If the suspension of the license
 is probated, the department may require the license holder to
 report regularly to the commission on any matter that is the basis
 of the probation.
 (b)  The judicial appeal of the revocation or suspension of a
 license must be initiated not later than the 15th day after the date
 of the commission's action.
 (c)  The commission may adopt rules for the reissuance of a
 revoked or suspended license and may set fees for the reissuance.
 (d)  The commission may deny the renewal of a license
 holder's existing license if the license holder has not complied
 with the permit requirements of this chapter or Chapter 391.
 (e)  The commission by rule shall adopt procedures for the
 suspension, revocation, or denial of a renewal of a license under
 this section, or the assessment of an administrative penalty under
 Section 394.082. The procedures must ensure that the enforcement
 action is appropriate for the violation for which it is taken.  The
 rules adopting the procedures must require the commission to
 consider:
 (1)  the seriousness of the violation, including the
 nature, circumstances, extent, and gravity of the violation;
 (2)  the economic harm to property or the environment
 caused by the violation;
 (3) the history of previous violations;
 (4)  for an administrative penalty, the amount
 necessary to deter future violations;
 (5)  the threat to the public safety and welfare posed
 by the violation;
 (6) efforts to correct the violation; and
 (7) any other matter that justice may require.
 Sec. 394.0207.  APPLICABILITY OF LICENSE.  In addition to
 authorizing a person to erect or maintain an off-premise sign, a
 license issued under this chapter authorizes a person to erect or
 maintain outdoor advertising under Chapter 391.
 Sec. 394.027.  FEE AMOUNTS. The license and permit fees
 required by this subchapter may not exceed an amount reasonably
 necessary to cover the administrative costs incurred to enforce
 this chapter.
 Sec. 394.028.  EXCEPTIONS FOR CERTAIN NONPROFIT
 ORGANIZATIONS. (a)  The combined license and permit fees under this
 subchapter may not exceed $10 for an off-premise sign erected and
 maintained by a nonprofit organization in a municipality or a
 municipality's extraterritorial jurisdiction if the sign relates
 to or promotes only the municipality or a political subdivision
 whose jurisdiction is wholly or partly concurrent with the
 municipality.
 (b)  The nonprofit organization is not required to file a
 bond as provided by Section 394.0202(a)(3).
 Sec. 394.029.  DENIAL OF PERMIT; APPEAL. The commission may
 create a process by which an applicant may appeal a denial of a
 permit under this subchapter.
 (b) The change in law made by Section 394.0201,
 Transportation Code, as added by this section, applies only to an
 off-premise sign erected or for which a permit is issued or renewed
 on or after the effective date of this Act. An off-premise sign for
 which a permit is issued before the effective date of this Act is
 covered by the law in effect when the permit was issued, and the
 former law is continued in effect for that purpose.
 SECTION 6.18. Section 394.050, Transportation Code, is
 amended to read as follows:
 Sec. 394.050. [BOARD OF] VARIANCE. The executive director
 or a person designated by the executive director [commission shall
 provide for a board of variance that], in an appropriate case and
 subject to an appropriate condition or safeguard, may make a
 special exception to this chapter regarding a permit for an
 off-premise outdoor sign on a rural road.
 SECTION 6.19. Section 394.081(c), Transportation Code, is
 amended to read as follows:
 (c) A civil penalty collected under this section shall be
 deposited to the credit of the Texas highway beautification [state
 highway] fund account if collected by the attorney general and to
 the credit of the county road and bridge fund if collected by a
 district or county attorney.
 SECTION 6.20. Sections 394.082(a), (d), and (e),
 Transportation Code, are amended to read as follows:
 (a) In lieu of a suit to collect a civil penalty, the
 commission, after notice and an opportunity for a hearing before
 the commission, may impose an administrative penalty against a
 person who [intentionally] violates this chapter or a rule adopted
 by the commission under this chapter. Each day a violation
 continues is a separate violation.
 (d) Judicial review of an appeal of an administrative
 penalty imposed under this section is under the substantial
 evidence rule [by trial de novo].
 (e) An administrative penalty collected under this section
 shall be deposited to the credit of the Texas highway
 beautification [state highway] fund account.
 SECTION 6.21. Subchapter E, Chapter 394, Transportation
 Code, is amended by adding Section 394.088 to read as follows:
 Sec. 394.088.  ADMINISTRATIVE HEARING. (a) If the
 department denies a permit application submitted under this
 chapter, or issues an administrative penalty under this chapter and
 under a section other than Section 394.086, the department shall
 send written notice by certified mail to the affected person.
 (b)  Not later than the 30th day after the date a person
 receives notice under Subsection (a), that person may make a
 written request to the commission for an administrative hearing to
 appeal:
 (1)  the denial of a permit application submitted under
 this chapter;
 (2)  the revocation of a permit issued under this
 chapter; or
 (3)  the imposition of an administrative penalty under
 this chapter.
 (c)  If a person requests a hearing under this section, the
 hearing shall be conducted by the State Office of Administrative
 Hearings. Chapter 2001, Government Code, applies to a proceeding
 under this chapter to the extent consistent with this chapter.
 (d)  The State Office of Administrative Hearings shall
 consider the department's applicable substantive rules and
 policies when conducting a hearing under this section.
 (e)  After a hearing conducted under this section, the
 administrative law judge shall:
 (1) make findings of fact and conclusions of law; and
 (2) promptly issue a decision to the commission.
 SECTION 6.22. Subtitle H, Title 6, Transportation Code, is
 amended by adding Chapter 398 to read as follows:
 CHAPTER 398.  PROVISIONS GENERALLY APPLICABLE TO OUTDOOR SIGNS
 Sec. 398.001.  DEFINITION.  In this chapter, "off-premise
 sign" means an outdoor sign displaying advertising that pertains to
 a business, person, organization, activity, event, place, service,
 or product not principally located or primarily manufactured or
 sold on the premises on which the sign is located.
 Sec. 398.002.  RIGHTS OF OWNER OF CERTAIN SIGNS. The rights
 associated with an off-premise sign that is lawfully in existence
 but no longer complies with current applicable laws and
 regulations, including laws and regulations promulgated under
 Chapters 391 and 394 of this code, and Chapter 216, Local Government
 Code, vest in the owner of the off-premise sign.  This section does
 not abrogate or otherwise affect the property rights of a party in
 an eminent domain proceeding.
 SECTION 6.23. Section 391.065(c), Transportation Code, is
 repealed.
 ARTICLE 7. GREEN RIBBON PROJECT
 SECTION 7.01. Subchapter I, Chapter 201, Transportation
 Code, is amended by adding Section 201.708 to read as follows:
 Sec. 201.708.  EXPENDITURES FOR HIGHWAY LANDSCAPING. (a)
 For each contract for a highway project that is located in an area
 designated by the United States Environmental Protection Agency as
 a nonattainment or near-nonattainment area under Section 107(d) of
 the federal Clean Air Act (42 U.S.C. Section 7407), the department
 shall allocate to the district or districts in which the project is
 to be located one-half of one percent of the total amount to be
 spent under the contract for construction, maintenance, and
 improvement of the project to be used for landscaping improvements
 for the project or other projects in the district or districts.
 (b) Landscaping improvements may include:
 (1)  planting of indigenous or adapted trees and other
 plants that are suitable for the climate in the area; and
 (2)  preparing the soil and installing irrigation
 systems for the growth of trees and plants.
 SECTION 7.02. Chapter 371, Transportation Code, as added by
 Chapter 103 (H.B. 570), Acts of the 80th Legislature, Regular
 Session, 2007, is amended by adding Subchapter C to read as follows:
 SUBCHAPTER C.  CONSTRUCTION, IMPROVEMENT, AND MAINTENANCE
 Sec. 371.101.  EXPENDITURES FOR TOLL PROJECT LANDSCAPING.
 (a)  For each contract for a toll project that is located in an area
 designated by the United States Environmental Protection Agency as
 a nonattainment or near-nonattainment area under Section 107(d) of
 the federal Clean Air Act (42 U.S.C. Section 7407), the toll project
 entity shall allocate to the district or districts in which the
 project is to be located an amount equal to one-half of one percent
 of the total amount to be spent under the contract for construction,
 maintenance, and improvement of the project to be used for
 landscaping improvements for the project or other projects in the
 district or districts.
 (b) Landscaping improvements may include:
 (1)  planting indigenous or adapted trees and other
 plants that are suitable for the climate in the area; and
 (2)  preparing the soil and installing irrigation
 systems for the growth of trees and plants.
 ARTICLE 8. TEXAS DEPARTMENT OF MOTOR VEHICLES
 PART 1. GENERAL PROVISIONS
 SECTION 8.1.01. Title 7, Transportation Code, is amended by
 adding Subtitle M to read as follows:
 SUBTITLE M. TEXAS DEPARTMENT OF MOTOR VEHICLES
 CHAPTER 1001.  ORGANIZATION OF DEPARTMENT
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 1001.001. DEFINITIONS. In this subtitle:
 (1) "Board" means the board of the department.
 (2)  "Department" means the Texas Department of Motor
 Vehicles.
 Sec. 1001.002.  CREATION OF DEPARTMENT; DUTIES. (a) The
 department is created as an agency of this state.
 (b)  In addition to the other duties required of the Texas
 Department of Motor Vehicles, the department shall administer and
 enforce:
 (1) Subtitle A;
 (2) Subtitle E;
 (3) Chapters 642, 643, 645, 646, and 648; and
 (4) Chapters 2301 and 2302, Occupations Code.
 Sec. 1001.003.  COMPOSITION OF DEPARTMENT. The department
 is composed of an executive director appointed by the board and
 other employees required to efficiently implement:
 (1) this subtitle;
 (2) other applicable vehicle laws of this state; and
 (3)  other laws that grant jurisdiction to or are
 applicable to the department.
 Sec. 1001.004.  DIVISIONS.  The board shall organize the
 department into divisions to accomplish the department's functions
 and the duties assigned to it, including divisions for:
 (1) administration;
 (2) motor carriers;
 (3) motor vehicles; and
 (4) vehicle titles and registration.
 Sec. 1001.005.  ADVISORY COMMITTEES. (a)  The board shall
 establish separate advisory committees for the motor carrier, motor
 vehicles, and vehicle titles and registration divisions to make
 recommendations to the board or the executive director on the
 operation of the applicable division. A committee has the
 purposes, powers, and duties, including the manner of reporting its
 work, prescribed by the board. A committee and each committee
 member serves at the will of the board.
 (b)  The board shall appoint persons to each advisory
 committee who:
 (1)  are selected from a list provided by the executive
 director; and
 (2)  have knowledge about and interests in, and
 represent a broad range of viewpoints about, the work of the
 committee or applicable division.
 (c)  The advisory committee for the motor vehicles division
 must include a member to represent motor vehicle manufacturers and
 a member to represent the recreational vehicle industry.
 (d)  The advisory committee for the motor carrier division
 must include a member to represent the motor transportation
 industry.
 (e)  A member of an advisory committee may not be compensated
 by the board or the department for committee service.
 Sec. 1001.006.  SUNSET PROVISION. The department is subject
 to Chapter 325, Government Code (Texas Sunset Act). Unless
 continued in existence as provided by that chapter, the department
 is abolished September 1, 2015.
 [Sections 1001.007-1001.020 reserved for expansion]
 SUBCHAPTER B.  BOARD OF DEPARTMENT OF MOTOR VEHICLES
 Sec. 1001.021.  BOARD.  (a)  The board consists of nine
 members appointed by the governor with the advice and consent of the
 senate.
 (b) The membership of the board must include:
 (1)  three members who are persons who hold a dealer's
 license issued under Chapter 2301, Occupations Code, of whom:
 (A)  two members must be franchised dealers of
 different classes; and
 (B) one member must be an independent dealer;
 (2)  one member who is a representative of a
 manufacturer or distributor that holds a license issued under
 Chapter 2301, Occupations Code;
 (3) one member who is a tax assessor-collector;
 (4)  one member who is a representative of a law
 enforcement agency of a county or municipality;
 (5)  one member who is a representative of the motor
 carrier industry; and
 (6) two members who are public members.
 (c)  A person may not be a public member of the board if the
 person or the person's spouse:
 (1)  is registered, certified, or licensed by the
 department;
 (2)  is employed by or participates in the management
 of a business entity or other organization regulated by or
 receiving money from the department;
 (3)  owns or controls, directly or indirectly, more
 than a 10 percent interest in a business entity or other
 organization regulated by or receiving money from the department;
 or
 (4)  uses or receives a substantial amount of tangible
 goods, services, or money from the department other than
 compensation or reimbursement authorized by law for board
 membership, attendance, or expenses.
 Sec. 1001.022.  TERMS.  Members of the board serve staggered
 six-year terms, with the terms of either one or two members expiring
 February 1 of each odd-numbered year.
 Sec. 1001.023.  PRESIDING OFFICER OF BOARD.  (a)  The
 governor shall designate a member of the board as the presiding
 officer of the board to serve in that capacity at the pleasure of
 the governor.
 (b) The presiding officer shall:
 (1)  preside over board meetings, make rulings on
 motions and points of order, and determine the order of business;
 (2)  create subcommittees, appoint board members to
 subcommittees, and receive the reports of subcommittees to the
 board as a whole; and
 (3)  appoint a member of the board to act in the
 presiding officer's absence.
 Sec. 1001.024.  BOARD MEETINGS.  The board shall hold
 regular meetings at least quarterly or at the call of the presiding
 officer.  Board members shall attend the meetings of the board.  The
 presiding officer shall oversee the preparation of an agenda for
 each meeting and ensure that a copy is provided to each board member
 at least seven days before the meeting.
 Sec. 1001.025.  COMPENSATION.  A member of the board is not
 entitled to compensation, but each member is entitled to
 reimbursement for actual and necessary expenses as provided by the
 General Appropriations Act.
 Sec. 1001.026.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
 removal from the board that a board member:
 (1)  does not have at the time of taking office the
 qualifications required by Section 1001.021;
 (2)  does not maintain during service on the board the
 qualifications required by Section 1001.021;
 (3)  is ineligible for membership under Section
 1001.021(c), 1007.002, or 1007.003;
 (4)  cannot, because of illness or disability,
 discharge the member's duties for a substantial part of the member's
 term; or
 (5)  is absent from more than half of the regularly
 scheduled board meetings that the member is eligible to attend
 during a calendar year without an excuse approved by a majority
 vote of the board.
 (b)  The validity of an action of the board is not affected by
 the fact that it is taken when a ground for removal of a board member
 exists.
 (c)  If the executive director of the department has
 knowledge that a potential ground for removal exists, the executive
 director shall notify the presiding officer of the board of the
 potential ground. The presiding officer shall then notify the
 governor and the attorney general that a potential ground for
 removal exists. If the potential ground for removal involves the
 presiding officer, the executive director shall notify the next
 highest ranking officer of the board, who shall then notify the
 governor and the attorney general that a potential ground for
 removal exists.
 Sec. 1001.027.  TRAINING ON DEPARTMENT AND CERTAIN LAWS
 RELATING TO DEPARTMENT.  (a)  A person who is appointed to and
 qualifies for office as a member of the board may not vote,
 deliberate, or be counted as a member in attendance at a meeting of
 the board until the person completes a training program that
 complies with this section.
 (b)  The training program must provide the person with
 information regarding:
 (1) the legislation that created the department;
 (2)  the programs, functions, rules, and budget of the
 department;
 (3)  the results of the most recent formal audit of the
 department;
 (4)  the requirements of laws relating to open
 meetings, public information, administrative procedure, and
 conflicts of interest; and
 (5)  any applicable ethics policies adopted by the
 department or the Texas Ethics Commission.
 (c)  A person appointed to the board is entitled to
 reimbursement, as provided by the General Appropriations Act, for
 the travel expenses incurred in attending the training program
 regardless of whether the attendance at the program occurs before
 or after the person qualifies for office.
 Sec. 1001.028.  TECHNOLOGICAL SOLUTIONS. The board shall
 implement a policy requiring the department to use appropriate
 technological solutions to improve the department's ability to
 perform its functions. The policy must ensure that the public is
 able to interact with the department on the Internet.
 Sec. 1001.029.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
 RESOLUTION PROCEDURES. (a) The board shall develop and implement a
 policy to encourage the use of:
 (1)  negotiated rulemaking procedures under Chapter
 2008, Government Code, for the adoption of department rules; and
 (2)  appropriate alternative dispute resolution
 procedures under Chapter 2009, Government Code, to assist in the
 resolution of internal and external disputes under the department's
 jurisdiction.
 (b)  The department's procedures relating to alternative
 dispute resolution must conform, to the extent possible, to any
 model guidelines issued by the State Office of Administrative
 Hearings for the use of alternative dispute resolution by state
 agencies.
 (c) The board shall designate a trained person to:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  serve as a resource for any training needed to
 implement the procedures for negotiated rulemaking or alternative
 dispute resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures, as implemented by the department.
 [Sections 1001.030-1001.040 reserved for expansion]
 SUBCHAPTER C.  PERSONNEL
 Sec. 1001.041.  DIVISION OF RESPONSIBILITIES. The board
 shall develop and implement policies that clearly separate the
 policymaking responsibilities of the board and the management
 responsibilities of the executive director and the staff of the
 department.
 CHAPTER 1002. RULES
 Sec. 1002.001.  GENERAL RULEMAKING AUTHORITY. The board may
 adopt any rules necessary and appropriate to implement the powers
 and duties of the department under this code and other laws of this
 state.
 [Chapters 1003-1005 reserved for expansion]
 CHAPTER 1006.  PUBLIC ACCESS
 Sec. 1006.001.  PUBLIC COMMENT. The board shall develop and
 implement policies that provide the public with a reasonable
 opportunity to appear before the board and to speak on any issue
 under the jurisdiction of the department.
 Sec. 1006.002.  COMPLAINT PROCEDURES. (a) The department
 shall maintain a system to promptly and efficiently act on
 complaints filed with the department. The department shall
 maintain information about parties to the complaint, the subject
 matter of the complaint, a summary of the results of the review or
 investigation of the complaint, and its disposition.
 (b)  The department shall make information available
 describing its procedures for complaint investigation and
 resolution.
 (c)  The department shall periodically notify the complaint
 parties of the status of the complaint until final disposition.
 CHAPTER 1007.  STANDARDS OF CONDUCT
 Sec. 1007.001.  APPLICATION OF LAW RELATING TO ETHICAL
 CONDUCT. The board, the executive director, and each employee or
 agent of the department is subject to the code of ethics and the
 standard of conduct imposed by Chapter 572, Government Code, and
 any other law regulating the ethical conduct of state officers and
 employees.
 Sec. 1007.002.  CONFLICTS OF INTEREST. (a) In this section,
 "Texas trade association" means a cooperative and voluntarily
 joined statewide association of business or professional
 competitors in this state designed to assist its members and its
 industry or profession in dealing with mutual business or
 professional problems and in promoting their common interest.
 (b)  A person may not be a member of the board and may not be a
 department employee employed in a "bona fide executive,
 administrative, or professional capacity," as that phrase is used
 for purposes of establishing an exemption to the overtime
 provisions of the federal Fair Labor Standards Act of 1938 (29
 U.S.C. Section 201 et seq.) if:
 (1)  the person is an officer, employee, or paid
 consultant of a Texas trade association in the motor vehicle or
 motor carrier industry or of a tax assessor-collector or law
 enforcement trade association; or
 (2)  the person's spouse is an officer, manager, or paid
 consultant of a Texas trade association in the motor vehicle or
 motor carrier industry or of a tax assessor-collector or law
 enforcement trade association.
 (c)  A person may not be a member of the board or act as the
 general counsel to the board or the department if the person is
 required to register as a lobbyist under Chapter 305, Government
 Code, because of the person's activities for compensation on behalf
 of a profession related to the operation of the department.
 Sec. 1007.003.  LOBBYING ACTIVITIES. A person may not serve
 as the executive director or act as the general counsel to the
 department if the person is required to register as a lobbyist under
 Chapter 305, Government Code, because of the person's activities
 for compensation on behalf of an occupation related to the
 operation of the department.
 PART 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS DEPARTMENT OF
 TRANSPORTATION
 SUBPART A. GENERAL PROVISIONS AND ADMINISTRATION
 SECTION 8.2A.01. Section 201.931(2), Transportation Code,
 is amended to read as follows:
 (2) "License" includes[:
 [(A)     a permit issued by the department that
 authorizes the operation of a vehicle and its load or a combination
 of vehicles and load exceeding size or weight limitations;
 [(B)     a motor carrier registration issued under
 Chapter 643;
 [(C)     a vehicle storage facility license issued
 under Chapter 2303, Occupations Code;
 [(D)] a license or permit for outdoor advertising
 issued under Chapter 391 or 394[;
 [(E)     a salvage vehicle dealer or agent license
 issued under Chapter 2302, Occupations Code;
 [(F)     specially designated or specialized license
 plates issued under Subchapters E and F, Chapter 502; and
 [(G)     an apportioned registration issued
 according to the International Registration Plan under Section
 502.054].
 SUBPART B. STATE HIGHWAY TOLL PROJECTS
 SECTION 8.2B.01. Sections 228.055(b) and (h),
 Transportation Code, are amended to read as follows:
 (b) The department may impose and collect the
 administrative fee, so as to recover the cost of collecting the
 unpaid toll, not to exceed $100. The department shall send a
 written notice of nonpayment to the registered owner of the vehicle
 at that owner's address as shown in the vehicle registration
 records of the Texas Department of Motor Vehicles [department] by
 first class mail and may require payment not sooner than the 30th
 day after the date the notice was mailed. The registered owner
 shall pay a separate toll and administrative fee for each event of
 nonpayment under Section 228.054.
 (h) In this section, "registered owner" means the owner of a
 vehicle as shown on the vehicle registration records of the Texas
 Department of Motor Vehicles [department] or the analogous
 department or agency of another state or country.
 SECTION 8.2B.02. Section 228.056(b), Transportation Code,
 is amended to read as follows:
 (b) In the prosecution of an offense under Section
 228.055(c), (d), or (e):
 (1) it is presumed that the notice of nonpayment was
 received on the fifth day after the date of mailing;
 (2) a computer record of the Texas Department of Motor
 Vehicles [department] of the registered owner of the vehicle is
 prima facie evidence of its contents and that the defendant was the
 registered owner of the vehicle when the underlying event of
 nonpayment under Section 228.054 occurred; and
 (3) a copy of the rental, lease, or other contract
 document covering the vehicle on the date of the underlying event of
 nonpayment under Section 228.054 is prima facie evidence of its
 contents and that the defendant was the lessee of the vehicle when
 the underlying event of nonpayment under Section 228.054 occurred.
 SUBPART C. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND
 HIGHWAYS IN CERTAIN COUNTIES
 SECTION 8.2C.01. Sections 284.0701(b), (e), and (h),
 Transportation Code, are amended to read as follows:
 (b) The county may impose and collect the administrative
 cost so as to recover the expense of collecting the unpaid toll, not
 to exceed $100. The county shall send a written notice of
 nonpayment to the registered owner of the vehicle at that owner's
 address as shown in the vehicle registration records of the Texas
 Department of Motor Vehicles [department] by first-class mail not
 later than the 30th day after the date of the alleged failure to pay
 and may require payment not sooner than the 30th day after the date
 the notice was mailed. The registered owner shall pay a separate
 toll and administrative cost for each event of nonpayment under
 Section 284.070.
 (e) It is an exception to the application of Subsection (a)
 or (c) if the registered owner of the vehicle transferred ownership
 of the vehicle to another person before the event of nonpayment
 under Section 284.070 occurred, submitted written notice of the
 transfer to the Texas Department of Motor Vehicles [department] in
 accordance with Section 520.023, and before the 30th day after the
 date the notice of nonpayment is mailed, provides to the county the
 name and address of the person to whom the vehicle was transferred.
 If the former owner of the vehicle provides the required
 information within the period prescribed, the county may send a
 notice of nonpayment to the person to whom ownership of the vehicle
 was transferred at the address provided by the former owner by
 first-class mail before the 30th day after the date of receipt of
 the required information from the former owner. The subsequent
 owner of the vehicle for which the proper toll was not paid who is
 mailed a written notice of nonpayment under this subsection and
 fails to pay the proper toll and administrative cost within the time
 specified by the notice of nonpayment commits an offense. The
 subsequent owner shall pay a separate toll and administrative cost
 for each event of nonpayment under Section 284.070. Each failure to
 pay a toll or administrative cost under this subsection is a
 separate offense.
 (h) In this section, "registered owner" means the owner of a
 vehicle as shown on the vehicle registration records of the Texas
 Department of Motor Vehicles [department] or the analogous
 department or agency of another state or country.
 SUBPART D. CERTIFICATE OF TITLE ACT
 SECTION 8.2D.01. Section 501.002(3), Transportation Code,
 is amended to read as follows:
 (3) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SUBPART E. REGISTRATION OF VEHICLES
 SECTION 8.2E.01. Section 502.001(3), Transportation Code,
 is amended to read as follows:
 (3) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SECTION 8.2E.02. Sections 502.053(a) and (b),
 Transportation Code, are amended to read as follows:
 (a) The department [Texas Department of Transportation]
 shall reimburse the Texas Department of Criminal Justice for the
 cost of manufacturing license plates or registration insignia as
 the license plates or insignia and the invoice for the license
 plates or insignia are delivered to the department [Texas
 Department of Transportation].
 (b) When manufacturing is started, the Texas Department of
 Criminal Justice, the department [Texas Department of
 Transportation], and the comptroller, after negotiation, shall set
 the price to be paid for each license plate or insignia. The price
 must be determined from:
 (1) the cost of metal, paint, and other materials
 purchased;
 (2) the inmate maintenance cost per day;
 (3) overhead expenses;
 (4) miscellaneous charges; and
 (5) a previously approved amount of profit for the
 work.
 SUBPART F. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES
 SECTION 8.2F.01. Section 503.001(5), Transportation Code,
 is amended to read as follows:
 (5) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SECTION 8.2F.02. Section 503.003, Transportation Code, is
 amended to read as follows:
 Sec. 503.003. DISPLAY OR SALE OF NONMOTORIZED VEHICLE OR
 TRAILER. This chapter does not prohibit the display or sale of a
 nonmotorized vehicle or trailer at a regularly scheduled vehicle or
 boat show with multiple vendors in accordance with [commission]
 rules of the board of the Texas Department of Motor Vehicles.
 SECTION 8.2F.03. Section 503.009(c), Transportation Code,
 is amended to read as follows:
 (c) A decision or final order issued under this section is
 final and may not be appealed, as a matter of right, to the board of
 the Texas Department of Motor Vehicles [commission].
 SECTION 8.2F.04. Sections 503.010 and 503.011,
 Transportation Code, are amended to read as follows:
 Sec. 503.010. TERM OF GENERAL DISTINGUISHING NUMBER,
 LICENSE, OR LICENSE PLATE. Each general distinguishing number,
 license, or license plate issued under this chapter is valid for the
 period prescribed by the board of the Texas Department of Motor
 Vehicles [commission].
 Sec. 503.011. PRORATING FEES. If the board of the Texas
 Department of Motor Vehicles [commission] prescribes the term of a
 general distinguishing number, license, or license plate under this
 chapter for a period other than one year, the board of the Texas
 Department of Motor Vehicles [commission] shall prorate the
 applicable annual fee required under this chapter as necessary to
 reflect the term of the number, license, or license plate.
 SECTION 8.2F.05. Section 503.031(a), Transportation Code,
 is amended to read as follows:
 (a) An applicant for a drive-a-way in-transit license must
 submit to the board of the Texas Department of Motor Vehicles
 [commission] an application containing the information required by
 the board of the Texas Department of Motor Vehicles [commission].
 SECTION 8.2F.06. Section 503.001(2), Transportation Code,
 is repealed.
 SUBPART G. MISCELLANEOUS PROVISIONS
 SECTION 8.2G.01. Section 520.001, Transportation Code, is
 amended to read as follows:
 Sec. 520.001. DEFINITION. In this chapter, "department"
 means the Texas Department of Motor Vehicles [Transportation].
 SUBPART H. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES
 SECTION 8.2H.01. Section 551.302, Transportation Code, is
 amended to read as follows:
 Sec. 551.302. REGISTRATION. The Texas Department of Motor
 Vehicles [Transportation] may adopt rules relating to the
 registration and issuance of license plates to neighborhood
 electric vehicles.
 SUBPART I. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
 SECTION 8.2I.01. Section 601.023, Transportation Code, is
 amended to read as follows:
 Sec. 601.023. PAYMENT OF STATUTORY FEES. The department
 may pay:
 (1) a statutory fee required by the Texas Department
 of Motor Vehicles [Transportation] for a certified abstract or in
 connection with suspension of a vehicle registration; or
 (2) a statutory fee payable to the comptroller for
 issuance of a certificate of deposit required by Section 601.122.
 SECTION 8.2I.02. Section 601.451, Transportation Code, as
 added by Chapter 892 (S.B. 1670), Acts of the 79th Legislature,
 Regular Session, 2005, is amended to read as follows:
 Sec. 601.451. DEFINITION. In this subchapter,
 "implementing agencies" means:
 (1) the department;
 (2) the Texas Department of Motor Vehicles
 [Transportation];
 (3) the Texas Department of Insurance; and
 (4) the Department of Information Resources.
 SECTION 8.2I.03. Subchapter N, Chapter 601, Transportation
 Code, as added by Chapter 1325 (H.B. 3588), Acts of the 78th
 Legislature, Regular Session, 2003, is repealed.
 SUBPART J. GENERAL PROVISIONS RELATING TO VEHICLE SIZE AND WEIGHT
 SECTION 8.2J.01. Sections 621.001(2), (3), and (4),
 Transportation Code, are amended to read as follows:
 (2) "Board" ["Commission"] means the board of the
 Texas Department of Motor Vehicles [Transportation Commission].
 (3) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 (4) "Director" means the executive director of the
 Texas Department of Motor Vehicles [Transportation].
 SECTION 8.2J.02. Section 621.003(a), Transportation Code,
 is amended to read as follows:
 (a) The board [commission] by rule may authorize the
 director to enter into with the proper authority of another state an
 agreement that authorizes:
 (1) the authority of the other state to issue on behalf
 of the department to the owner or operator of a vehicle, or
 combination of vehicles, that exceeds the weight or size limits
 allowed by this state a permit that authorizes the operation or
 transportation on a highway in this state of the vehicle or
 combination of vehicles; and
 (2) the department to issue on behalf of the authority
 of the other state to the owner or operator of a vehicle, or
 combination of vehicles, that exceeds the weight or size limits
 allowed by that state a permit that authorizes the operation or
 transportation on a highway of that state of the vehicle or
 combination of vehicles.
 SECTION 8.2J.03. Subchapter A, Chapter 621, Transportation
 Code, is amended by adding Section 621.008 to read as follows:
 Sec. 621.008.  STUDY REGARDING OVERSIZE AND OVERWEIGHT
 VEHICLES.  (a)  In this section, "division" means the motor carrier
 division of the Texas Department of Motor Vehicles.
 (b)  The division and the Texas Department of Transportation
 shall conduct a joint study to determine improvements to the
 regulation of oversize and overweight vehicles.
 (c)  In conducting the study, the division and the Texas
 Department of Transportation shall consider:
 (1)  prohibiting overweight vehicles or vehicle
 combinations from traveling on state highways if the vehicle or
 combination will cause damage to a road or bridge, based on the
 weight or load specifications to which the road or bridge was built;
 (2)  requiring each applicant for a permit under
 Chapter 623 to pay a graduated highway maintenance fee based on
 weight and the amount of damage done by the permitted vehicle or
 vehicle combination to roads and bridges;
 (3)  requiring each fee collected for an overweight or
 oversize vehicle permit to be deposited in the state highway fund;
 and
 (4)  eliminating all exemptions for overweight
 vehicles.
 (d)  Not later than September 1, 2010, the division and the
 Texas Department of Transportation shall report the results of the
 study conducted under this section to the governor, the lieutenant
 governor, the speaker of the house of representatives, and the
 appropriate oversight committee of each house of the legislature.
 (e) This section expires September 1, 2011.
 SECTION 8.2J.04. Section 621.102, Transportation Code, is
 amended to read as follows:
 Sec. 621.102. BOARD'S [COMMISSION'S] AUTHORITY TO SET
 MAXIMUM WEIGHTS. (a) The board [commission] may set the maximum
 single axle weight, tandem axle weight, or gross weight of a
 vehicle, or maximum single axle weight, tandem axle weight, or
 gross weight of a combination of vehicles and loads, that may be
 moved over a state highway or a farm or ranch road if the board
 [commission] finds that heavier maximum weight would rapidly
 deteriorate or destroy the road or a bridge or culvert along the
 road. A maximum weight set under this subsection may not exceed the
 maximum set by statute for that weight.
 (b) The board [commission] must set a maximum weight under
 this section by order entered in its minutes.
 (c) The board [commission] must make the finding under this
 section on an engineering and traffic investigation and in making
 the finding shall consider the width, condition, and type of
 pavement structures and other circumstances on the road.
 (d) A maximum weight or load set under this section becomes
 effective on a highway or road when appropriate signs giving notice
 of the maximum weight or load are erected on the highway or road
 under order of the board [commission].
 (e) A vehicle operating under a permit issued under Section
 623.011, 623.071, 623.094, 623.121, 623.142, 623.181, 623.192, or
 623.212 may operate under the conditions authorized by the permit
 over a road for which the board [commission] has set a maximum
 weight under this section.
 (f) For the purpose of this section, a farm or ranch road is
 a state highway that is shown in the records of the board
 [commission] to be a farm-to-market or ranch-to-market road.
 (g) This section does not apply to a vehicle delivering
 groceries, farm products, or liquefied petroleum gas.
 SECTION 8.2J.05. The heading to Section 621.202,
 Transportation Code, is amended to read as follows:
 Sec. 621.202. BOARD'S [COMMISSION'S] AUTHORITY TO SET
 MAXIMUM WIDTH.
 SECTION 8.2J.06. Section 621.202(a), Transportation Code,
 is amended to read as follows:
 (a) To comply with safety and operational requirements of
 federal law, the board [commission] by order may set the maximum
 width of a vehicle, including the load on the vehicle, at eight feet
 for a designated highway or segment of a highway if the results of
 an engineering and traffic study that includes an analysis of
 structural capacity of bridges and pavements, traffic volume,
 unique climatic conditions, and width of traffic lanes support the
 change.
 SECTION 8.2J.07. Section 621.301(b), Transportation Code,
 is amended to read as follows:
 (b) The commissioners court may limit the maximum weights to
 be moved on or over a county road, bridge, or culvert by exercising
 its authority under this subsection in the same manner and under the
 same conditions provided by Section 621.102 for the board
 [commission] to limit maximum weights on highways and roads to
 which that section applies.
 SECTION 8.2J.08. Section 621.352(a), Transportation Code,
 is amended to read as follows:
 (a) The board [commission] by rule may establish fees for
 the administration of Section 621.003 in an amount that, when added
 to the other fees collected by the department, does not exceed the
 amount sufficient to recover the actual cost to the department of
 administering that section. An administrative fee collected under
 this section shall be sent to the comptroller for deposit to the
 credit of the state highway fund and may be appropriated only to the
 department for the administration of Section 621.003.
 SECTION 8.2J.09. Section 621.356, Transportation Code, is
 amended to read as follows:
 Sec. 621.356. FORM OF PAYMENT. The board [commission] may
 adopt rules prescribing the method for payment of a fee for a permit
 issued by the department that authorizes the operation of a vehicle
 and its load or a combination of vehicles and load exceeding size or
 weight limitations. The rules may:
 (1) authorize the use of electronic funds transfer or
 a credit card issued by:
 (A) a financial institution chartered by a state
 or the federal government; or
 (B) a nationally recognized credit organization
 approved by the board [commission]; and
 (2) require the payment of a discount or service
 charge for a credit card payment in addition to the fee.
 SUBPART K. SPECIAL PROVISIONS AND EXCEPTIONS FOR OVERSIZE OR
 OVERWEIGHT VEHICLES
 SECTION 8.2K.01. Section 622.001, Transportation Code, is
 amended to read as follows:
 Sec. 622.001. DEFINITION. In this chapter, "department"
 means the Texas Department of Motor Vehicles [Transportation].
 SECTION 8.2K.02. Section 622.101(a), Transportation Code,
 is amended to read as follows:
 (a) A single motor vehicle used exclusively to transport
 chile pepper modules, seed cotton, cotton, cotton burrs, or
 equipment used to transport or process chile pepper modules or
 cotton, including a motor vehicle or burr spreader, may not be
 operated on a highway or road if the vehicle is:
 (1) wider than 10 feet and the highway has not been
 designated by the board [commission] under Section 621.202;
 (2) longer than 48 feet; or
 (3) higher than 14 feet 6 inches.
 SUBPART L. PERMITS FOR OVERSIZE OR OVERWEIGHT VEHICLES
 SECTION 8.2L.01. Section 623.001, Transportation Code, is
 amended by amending Subdivision (1) and adding Subdivision (4) to
 read as follows:
 (1) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 (4)  "Board" means the board of the Texas Department of
 Motor Vehicles.
 SECTION 8.2L.02. Sections 623.012(a), (b), and (c),
 Transportation Code, are amended to read as follows:
 (a) An applicant for a permit under Section 623.011, other
 than a permit to operate a vehicle loaded with timber or pulp wood,
 wood chips, cotton, or agricultural products in their natural
 state, shall file with the Texas Department of Transportation
 [department]:
 (1) a blanket bond; or
 (2) an irrevocable letter of credit issued by a
 financial institution the deposits of which are guaranteed by the
 Federal Deposit Insurance Corporation.
 (b) The bond or letter of credit must:
 (1) be in the amount of $15,000 payable to the Texas
 Department of Transportation [department] and the counties of this
 state;
 (2) be conditioned that the applicant will pay the
 Texas Department of Transportation [department] for any damage to a
 state highway, and a county for any damage to a road or bridge of the
 county, caused by the operation of the vehicle for which the permit
 is issued at a heavier weight than the maximum weights authorized by
 Subchapter B of Chapter 621 or Section 621.301; and
 (3) provide that the issuer is to notify the Texas
 Department of Transportation [department] and the applicant in
 writing promptly after a payment is made by the issuer on the bond
 or letter of credit.
 (c) If an issuer of a bond or letter of credit pays under the
 bond or letter of credit, the permit holder shall file with the
 Texas Department of Transportation [department] before the 31st day
 after the date on which the payment is made:
 (1) a replacement bond or letter of credit in the
 amount prescribed by Subsection (b) for the original bond or letter
 of credit; or
 (2) a notification from the issuer of the existing
 bond or letter of credit that the bond or letter of credit has been
 restored to the amount prescribed by Subsection (b).
 SECTION 8.2L.03. Sections 623.016(a) and (b),
 Transportation Code, are amended to read as follows:
 (a) The Texas Department of Transportation [department] or
 a county may recover on the bond or letter of credit required for a
 permit issued under Section 623.011 only by a suit against the
 permit holder and the issuer of the bond or letter of credit.
 (b) Venue for a suit by the Texas Department of
 Transportation [department] is in a district court in:
 (1) the county in which the defendant resides;
 (2) the county in which the defendant has its
 principal place of business in this state if the defendant is a
 corporation or partnership; or
 (3) Travis County if the defendant is a corporation or
 partnership that does not have a principal place of business in this
 state.
 SECTION 8.2L.04. Section 623.051, Transportation Code, is
 amended to read as follows:
 Sec. 623.051. CONTRACT ALLOWING OVERSIZE OR OVERWEIGHT
 VEHICLE TO CROSS ROAD; SURETY BOND. (a) A person may operate a
 vehicle that cannot comply with one or more of the restrictions of
 Subchapter C of Chapter 621 or Section 621.101 to cross the width of
 any road or highway under the jurisdiction of the Texas Department
 of Transportation [department], other than a controlled access
 highway as defined by Section 203.001, from private property to
 other private property if the person contracts with the Texas
 Transportation Commission [commission] to indemnify the Texas
 Department of Transportation [department] for the cost of
 maintenance and repair of the part of the highway crossed by the
 vehicle.
 (b) The Texas Transportation Commission [commission] shall
 adopt rules relating to the forms and procedures to be used under
 this section and other matters that the commission considers
 necessary to carry out this section.
 (c) To protect the safety of the traveling public, minimize
 any delays and inconveniences to the operators of vehicles in
 regular operation, and assure payment for the added wear on the
 highways in proportion to the reduction of service life, the Texas
 Transportation Commission [commission], in adopting rules under
 this section, shall consider:
 (1) the safety and convenience of the general
 traveling public;
 (2) the suitability of the roadway and subgrade on the
 road or highway to be crossed, variation in soil grade prevalent in
 the different regions of the state, and the seasonal effects on
 highway load capacity, the highway shoulder design, and other
 highway geometrics; and
 (3) the state's investment in its highway system.
 (d) Before exercising any right under a contract under this
 section, a person must execute with a corporate surety authorized
 to do business in this state a surety bond in an amount determined
 by the Texas Transportation Commission [commission] to compensate
 for the cost of maintenance and repairs as provided by this section.
 The bond must be approved by the comptroller and the attorney
 general and must be conditioned on the person fulfilling the
 obligations of the contract.
 SECTION 8.2L.05. Section 623.052(b), Transportation Code,
 is amended to read as follows:
 (b) Before a person may operate a vehicle under this
 section, the person must:
 (1) contract with the Texas Department of
 Transportation [department] to indemnify the Texas Department of
 Transportation [department] for the cost of the maintenance and
 repair for damage caused by a vehicle crossing that part of the
 highway; and
 (2) execute an adequate surety bond to compensate for
 the cost of maintenance and repair, approved by the comptroller and
 the attorney general, with a corporate surety authorized to do
 business in this state, conditioned on the person fulfilling each
 obligation of the agreement.
 SECTION 8.2L.06. Section 623.075(a), Transportation Code,
 is amended to read as follows:
 (a) Before the department may issue a permit under this
 subchapter, the applicant shall file with the Texas Department of
 Transportation [department] a bond in an amount set by the Texas
 Department of Transportation [department], payable to the Texas
 Department of Transportation [department], and conditioned that
 the applicant will pay to the Texas Department of Transportation
 [department] any damage that might be sustained to the highway
 because of the operation of the equipment for which a permit is
 issued.
 SECTION 8.2L.07. Sections 623.076(b) and (c),
 Transportation Code, are amended to read as follows:
 (b) The board [Texas Transportation Commission] may adopt
 rules for the payment of a fee under Subsection (a). The rules may:
 (1) authorize the use of electronic funds transfer;
 (2) authorize the use of a credit card issued by:
 (A) a financial institution chartered by a state
 or the United States; or
 (B) a nationally recognized credit organization
 approved by the board [Texas Transportation Commission]; and
 (3) require the payment of a discount or service
 charge for a credit card payment in addition to the fee prescribed
 by Subsection (a).
 (c) An application for a permit under Section 623.071(c)(3)
 or (d) must be accompanied by the permit fee established by the
 board [commission] for the permit, not to exceed $7,000. Of each
 fee collected under this subsection, the department shall send:
 (1) the first $1,000 to the comptroller for deposit to
 the credit of the general revenue fund; and
 (2) any amount in excess of $1,000 to the comptroller
 for deposit to the credit of the state highway fund.
 SECTION 8.2L.08. Sections 623.145, 623.146, 623.195,
 623.196, 623.232, and 623.239, Transportation Code, are amended to
 read as follows:
 Sec. 623.145. RULES; FORMS AND PROCEDURES; FEES. (a) The
 board [Texas Transportation Commission] by rule shall provide for
 the issuance of permits under this subchapter. The rules must
 include each matter the board [commission] determines necessary to
 implement this subchapter and:
 (1) requirements for forms and procedures used in
 applying for a permit;
 (2) conditions with regard to route and time of
 movement;
 (3) requirements for flags, flaggers, and warning
 devices;
 (4) the fee for a permit; and
 (5) standards to determine whether a permit is to be
 issued for one trip only or for a period established by the board
 [commission].
 (b) In adopting a rule or establishing a fee, the board
 [commission] shall consider and be guided by:
 (1) the state's investment in its highway system;
 (2) the safety and convenience of the general
 traveling public;
 (3) the registration or license fee paid on the
 vehicle for which the permit is requested;
 (4) the fees paid by vehicles operating within legal
 limits;
 (5) the suitability of roadways and subgrades on the
 various classes of highways of the system;
 (6) the variation in soil grade prevalent in the
 different regions of the state;
 (7) the seasonal effects on highway load capacity;
 (8) the highway shoulder design and other highway
 geometrics;
 (9) the load capacity of the highway bridges;
 (10) administrative costs;
 (11) added wear on highways; and
 (12) compensation for inconvenience and necessary
 delays to highway users.
 Sec. 623.146. VIOLATION OF RULE. A permit under this
 subchapter is void on the failure of an owner or the owner's
 representative to comply with a rule of the board [commission] or
 with a condition placed on the permit, and immediately on the
 violation, further movement over the highway of an oversize or
 overweight vehicle violates the law regulating the size or weight
 of a vehicle on a public highway.
 Sec. 623.195. RULES; FORMS AND PROCEDURES; FEES. (a) The
 board [Texas Transportation Commission] by rule shall provide for
 the issuance of a permit under this subchapter. The rules must
 include each matter the board [commission] determines necessary to
 implement this subchapter and:
 (1) requirements for forms and procedures used in
 applying for a permit;
 (2) conditions with regard to route and time of
 movement;
 (3) requirements for flags, flaggers, and warning
 devices;
 (4) the fee for a permit; and
 (5) standards to determine whether a permit is to be
 issued for one trip only or for a period established by the board
 [commission].
 (b) In adopting a rule or establishing a fee, the board
 [commission] shall consider and be guided by:
 (1) the state's investment in its highway system;
 (2) the safety and convenience of the general
 traveling public;
 (3) the registration or license fee paid on the
 vehicle for which the permit is requested;
 (4) the fees paid by vehicles operating within legal
 limits;
 (5) the suitability of roadways and subgrades on the
 various classes of highways of the system;
 (6) the variation in soil grade prevalent in the
 different regions of the state;
 (7) the seasonal effects on highway load capacity;
 (8) the highway shoulder design and other highway
 geometrics;
 (9) the load capacity of highway bridges;
 (10) administrative costs;
 (11) added wear on highways; and
 (12) compensation for inconvenience and necessary
 delays to highway users.
 Sec. 623.196. VIOLATION OF RULE. A permit under this
 subchapter is void on the failure of an owner or the owner's
 representative to comply with a rule of the board [commission] or
 with a condition placed on the permit, and immediately on the
 violation, further movement over a highway of an oversize or
 overweight vehicle violates the law regulating the size or weight
 of a vehicle on a public highway.
 Sec. 623.232. ISSUANCE OF PERMITS. The board [Texas
 Transportation Commission] may authorize the district to issue
 permits for the movement of oversize or overweight vehicles
 carrying cargo on state highways located in Victoria County.
 Sec. 623.239. RULES. The board [Texas Transportation
 Commission] may adopt rules necessary to implement this subchapter.
 SECTION 8.2L.09. Section 623.252(a), Transportation Code,
 is amended to read as follows:
 (a) The board [Texas Transportation Commission] may
 authorize the county to issue permits for the movement of oversize
 or overweight vehicles carrying cargo on state highways located in
 Chambers County.
 SECTION 8.2L.10. Section 623.259, Transportation Code, is
 amended to read as follows:
 Sec. 623.259. RULES. The board [Texas Transportation
 Commission] may adopt rules necessary to implement this subchapter.
 SUBPART M. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR
 VEHICLES
 SECTION 8.2M.01. Section 642.002(d), Transportation Code,
 is amended to read as follows:
 (d) The Texas Department of Motor Vehicles [Transportation]
 by rule may prescribe additional requirements regarding the form of
 the markings required by Subsection (a)(2) that are not
 inconsistent with that subsection.
 SUBPART N. MOTOR CARRIER REGISTRATION
 SECTION 8.2N.01. Section 643.001, Transportation Code, is
 amended by amending Subdivision (1) and adding Subdivision (1-a) to
 read as follows:
 (1) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 (1-a)  "Board" means the board of the Texas Department
 of Motor Vehicles.
 SUBPART O. SINGLE STATE REGISTRATION
 SECTION 8.2O.01. Section 645.001, Transportation Code, is
 amended to read as follows:
 Sec. 645.001. FEDERAL MOTOR CARRIER REGISTRATION. The
 Texas Department of Motor Vehicles [Transportation] may, to the
 fullest extent practicable, participate in a federal motor carrier
 registration program under the unified carrier registration system
 as defined by Section 643.001 or a [the] single state registration
 system established under federal law [49 U.S.C. Section 14504].
 SUBPART P. MOTOR TRANSPORTATION BROKERS
 SECTION 8.2P.01. Section 646.003(a), Transportation Code,
 is amended to read as follows:
 (a) A person may not act as a motor transportation broker
 unless the person provides a bond to the Texas Department of Motor
 Vehicles [Transportation].
 SUBPART Q. FOREIGN COMMERCIAL MOTOR TRANSPORTATION
 SECTION 8.2Q.01. Section 648.002, Transportation Code, is
 amended to read as follows:
 Sec. 648.002. RULES. In addition to rules required by this
 chapter, the Texas Department of Motor Vehicles [Transportation],
 the Department of Public Safety, and the Texas Department of
 Insurance may adopt other rules to carry out this chapter.
 SUBPART R. ABANDONED MOTOR VEHICLES
 SECTION 8.2R.01. Section 683.001(1), Transportation Code,
 is amended to read as follows:
 (1) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SUBPART S. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS
 SECTION 8.2S.01. Section 702.001(1), Transportation Code,
 is amended to read as follows:
 (1) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SUBPART T. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM
 SECTION 8.2T.01. Section 707.001(2), Transportation Code,
 is amended to read as follows:
 (2) "Owner of a motor vehicle" means the owner of a
 motor vehicle as shown on the motor vehicle registration records of
 the Texas Department of Motor Vehicles [Transportation] or the
 analogous department or agency of another state or country.
 SECTION 8.2T.02. Section 707.011(b), Transportation Code,
 is amended to read as follows:
 (b) Not later than the 30th day after the date the violation
 is alleged to have occurred, the designated department, agency, or
 office of the local authority or the entity with which the local
 authority contracts under Section 707.003(a)(1) shall mail the
 notice of violation to the owner at:
 (1) the owner's address as shown on the registration
 records of the Texas Department of Motor Vehicles [Transportation];
 or
 (2) if the vehicle is registered in another state or
 country, the owner's address as shown on the motor vehicle
 registration records of the department or agency of the other state
 or country analogous to the Texas Department of Motor Vehicles
 [Transportation].
 SECTION 8.2T.03. Section 707.017, Transportation Code, is
 amended to read as follows:
 Sec. 707.017. ENFORCEMENT. If the owner of a motor vehicle
 is delinquent in the payment of a civil penalty imposed under this
 chapter, the county assessor-collector or the Texas Department of
 Motor Vehicles [Transportation] may refuse to register a motor
 vehicle alleged to have been involved in the violation.
 SUBPART U. SALE OR LEASE OF MOTOR VEHICLES
 SECTION 8.2U.01. Section 2301.002(9), Occupations Code, is
 amended to read as follows:
 (9) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SECTION 8.2U.02. Section 2301.005(a), Occupations Code, is
 amended to read as follows:
 (a) A reference in law, including a rule, to the Texas Motor
 Vehicle Commission or to the board means the board of the Texas
 Department of Motor Vehicles, in matters concerning the governance
 of the department of motor vehicles or the policymaking,
 rulemaking, or adjudicative functions of the department. A
 reference in law to the board is a reference to the director of the
 motor vehicles division in matters concerning the administrative
 functions of the division [director, except that a reference to the
 board means the commission if it is related to the adoption of
 rules].
 SECTION 8.2U.03. Sections 2301.606(a), (b), and (c),
 Occupations Code, are amended to read as follows:
 (a) The board [director] under board rules shall conduct
 hearings and issue final orders for the implementation and
 enforcement of this subchapter. [An order issued by the director
 under this subchapter is considered a final order of the board.]
 (b) In a hearing before the board [director] under this
 subchapter, a manufacturer, converter, or distributor may plead and
 prove as an affirmative defense to a remedy under this subchapter
 that a nonconformity:
 (1) is the result of abuse, neglect, or unauthorized
 modification or alteration of the motor vehicle; or
 (2) does not substantially impair the use or market
 value of the motor vehicle.
 (c) The board [director] may not issue an order requiring a
 manufacturer, converter, or distributor to make a refund or to
 replace a motor vehicle unless:
 (1) the owner or a person on behalf of the owner has
 mailed written notice of the alleged defect or nonconformity to the
 manufacturer, converter, or distributor; and
 (2) the manufacturer, converter, or distributor has
 been given an opportunity to cure the alleged defect or
 nonconformity.
 SECTION 8.2U.04. Section 2301.002(33), Occupations Code,
 is repealed.
 SUBPART V. SALVAGE VEHICLE DEALERS
 SECTION 8.2V.01. Sections 2302.001(2) and (3), Occupations
 Code, are amended to read as follows:
 (2) "Board" ["Commission"] means the board of the
 Texas Department of Motor Vehicles [Transportation Commission].
 (3) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SECTION 8.2V.02. Section 2302.0015(b), Occupations Code,
 is amended to read as follows:
 (b) For the purpose of enforcing or administering this
 chapter or Chapter 501 or 502, Transportation Code, a member of the
 board [commission], an employee or agent of the board [commission]
 or department, a member of the Public Safety Commission, an officer
 of the Department of Public Safety, or a peace officer may at a
 reasonable time:
 (1) enter the premises of a business regulated under
 one of those chapters; and
 (2) inspect or copy any document, record, vehicle,
 part, or other item regulated under one of those chapters.
 SECTION 8.2V.03. The heading to Subchapter B, Chapter 2302,
 Occupations Code, is amended to read as follows:
 SUBCHAPTER B. BOARD [COMMISSION] POWERS AND DUTIES
 SECTION 8.2V.04. Sections 2302.051, 2302.052, and
 2302.053, Occupations Code, are amended to read as follows:
 Sec. 2302.051. RULES AND ENFORCEMENT POWERS. The board
 [commission] shall adopt rules as necessary to administer this
 chapter and may take other action as necessary to enforce this
 chapter.
 Sec. 2302.052. DUTY TO SET FEES. The board [commission]
 shall set application fees, license fees, renewal fees, and other
 fees as required to implement this chapter. The board [commission]
 shall set the fees in amounts reasonable and necessary to implement
 and enforce this chapter.
 Sec. 2302.053. RULES RESTRICTING ADVERTISING OR
 COMPETITIVE BIDDING. (a) The board [commission] may not adopt a
 rule under Section 2302.051 restricting advertising or competitive
 bidding by a person who holds a license issued under this chapter
 except to prohibit false, misleading, or deceptive practices by the
 person.
 (b) The board [commission] may not include in its rules to
 prohibit false, misleading, or deceptive practices a rule that:
 (1) restricts the use of any advertising medium;
 (2) restricts the person's personal appearance or use
 of the person's voice in an advertisement;
 (3) relates to the size or duration of an
 advertisement by the person; or
 (4) restricts the use of a trade name in advertising by
 the person.
 SECTION 8.2V.05. Section 2302.108(b), Occupations Code, is
 amended to read as follows:
 (b) The board [commission] by rule shall establish the
 grounds for denial, suspension, revocation, or reinstatement of a
 license issued under this chapter and the procedures for
 disciplinary action. A rule adopted under this subsection may not
 conflict with a rule adopted by the State Office of Administrative
 Hearings.
 SECTION 8.2V.06. Section 2302.204, Occupations Code, is
 amended to read as follows:
 Sec. 2302.204. CASUAL SALES. This chapter does not apply to
 a person who purchases fewer than three nonrepairable motor
 vehicles or salvage motor vehicles from a salvage vehicle dealer,
 an insurance company or salvage pool operator in a casual sale at
 auction, except that:
 (1) the board [commission] shall adopt rules as
 necessary to regulate casual sales by salvage vehicle dealers,
 insurance companies, or salvage pool operators and to enforce this
 section; and
 (2) a salvage vehicle dealer, insurance company, or
 salvage pool operator who sells a motor vehicle in a casual sale
 shall comply with those rules and Subchapter E, Chapter 501,
 Transportation Code.
 PART 3. CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF
 TRANSPORTATION IN OTHER CODES
 SUBPART A. BUSINESS & COMMERCE CODE
 SECTION 8.3A.01. Section 51.003(b), Business & Commerce
 Code, is amended to read as follows:
 (b) In this chapter, "business opportunity" does not
 include:
 (1) the sale or lease of an established and ongoing
 business or enterprise that has actively conducted business before
 the sale or lease, whether composed of one or more than one
 component business or enterprise, if the sale or lease represents
 an isolated transaction or series of transactions involving a bona
 fide change of ownership or control of the business or enterprise or
 liquidation of the business or enterprise;
 (2) a sale by a retailer of goods or services under a
 contract or other agreement to sell the inventory of one or more
 ongoing leased departments to a purchaser who is granted the right
 to sell the goods or services within or adjoining a retail business
 establishment as a department or division of the retail business
 establishment;
 (3) a transaction that is:
 (A) regulated by the Texas Department of
 Licensing and Regulation, the Texas Department of Insurance, the
 Texas Real Estate Commission, or the director of the Motor Vehicle
 Division of the Texas Department of Motor Vehicles
 [Transportation]; and
 (B) engaged in by a person licensed by one of
 those agencies;
 (4) a real estate syndication;
 (5) a sale or lease to a business enterprise that also
 sells or leases products, equipment, or supplies or performs
 services:
 (A) that are not supplied by the seller; and
 (B) that the purchaser does not use with the
 seller's products, equipment, supplies, or services;
 (6) the offer or sale of a franchise as described by
 the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et
 seq.) and its subsequent amendments;
 (7) the offer or sale of a business opportunity if the
 seller:
 (A) has a net worth of $25 million or more
 according to the seller's audited balance sheet as of a date not
 earlier than the 13th month before the date of the transaction; or
 (B) is at least 80 percent owned by another
 person who:
 (i) in writing unconditionally guarantees
 performance by the person offering the business opportunity plan;
 and
 (ii) has a net worth of more than $25
 million according to the person's most recent audited balance sheet
 as of a date not earlier than the 13th month before the date of the
 transaction; or
 (8) an arrangement defined as a franchise by 16 C.F.R.
 Section 436.2(a) and its subsequent amendments if:
 (A) the franchisor complies in all material
 respects in this state with 16 C.F.R. Part 436 and each order or
 other action of the Federal Trade Commission; and
 (B) before offering for sale or selling a
 franchise in this state, a person files with the secretary of state
 a notice containing:
 (i) the name of the franchisor;
 (ii) the name under which the franchisor
 intends to transact business; and
 (iii) the franchisor's principal business
 address.
 SECTION 8.3A.02. Section 105.004(b), Business & Commerce
 Code, is amended to read as follows:
 (b) The Texas Department of Motor Vehicles [Transportation]
 shall provide a notice that states the provisions of this chapter to
 each person with a disability who is issued:
 (1) license plates under Section 504.201,
 Transportation Code; or
 (2) a disabled parking placard under Section 681.004,
 Transportation Code.
 SUBPART B. CODE OF CRIMINAL PROCEDURE
 SECTION 8.3B.01. Section 1(1), Article 42.22, Code of
 Criminal Procedure, is amended to read as follows:
 (1) "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 SECTION 8.3B.02. Article 59.04(c), Code of Criminal
 Procedure, is amended to read as follows:
 (c) If the property is a motor vehicle, and if there is
 reasonable cause to believe that the vehicle has been registered
 under the laws of this state, the attorney representing the state
 shall ask the Texas Department of Motor Vehicles [Transportation]
 to identify from its records the record owner of the vehicle and any
 interest holder. If the addresses of the owner and interest holder
 are not otherwise known, the attorney representing the state shall
 request citation be served on such persons at the address listed
 with the Texas Department of Motor Vehicles [Transportation]. If
 the citation issued to such address is returned unserved, the
 attorney representing the state shall cause a copy of the notice of
 the seizure and intended forfeiture to be posted at the courthouse
 door, to remain there for a period of not less than 30 days. If the
 owner or interest holder does not answer or appear after the notice
 has been so posted, the court shall enter a judgment by default as
 to the owner or interest holder, provided that the attorney
 representing the state files a written motion supported by
 affidavit setting forth the attempted service. An owner or
 interest holder whose interest is forfeited in this manner shall
 not be liable for court costs. If the person in possession of the
 vehicle at the time of the seizure is not the owner or the interest
 holder of the vehicle, notification shall be provided to the
 possessor in the same manner specified for notification to an owner
 or interest holder.
 SUBPART C. FAMILY CODE
 SECTION 8.3C.01. Section 157.316(b), Family Code, is
 amended to read as follows:
 (b) If a lien established under this subchapter attaches to
 a motor vehicle, the lien must be perfected in the manner provided
 by Chapter 501, Transportation Code, and the court or Title IV-D
 agency that rendered the order of child support shall include in the
 order a requirement that the obligor surrender to the court or Title
 IV-D agency evidence of the legal ownership of the motor vehicle
 against which the lien may attach. A lien against a motor vehicle
 under this subchapter is not perfected until the obligor's title to
 the vehicle has been surrendered to the court or Title IV-D agency
 and the Texas Department of Motor Vehicles [Transportation] has
 issued a subsequent title that discloses on its face the fact that
 the vehicle is subject to a child support lien under this
 subchapter.
 SECTION 8.3C.02. Section 232.0022(a), Family Code, is
 amended to read as follows:
 (a) The Texas Department of Motor Vehicles [Transportation]
 is the appropriate licensing authority for suspension or nonrenewal
 of a motor vehicle registration under this chapter.
 SECTION 8.3C.03. Section 232.014(b), Family Code, is
 amended to read as follows:
 (b) A fee collected by the Texas Department of Motor
 Vehicles [Transportation] or the Department of Public Safety shall
 be deposited to the credit of the state highway fund.
 SECTION 8.3C.04. Section 264.502(b), Family Code, is
 amended to read as follows:
 (b) The members of the committee who serve under Subsections
 (a)(1) through (3) shall select the following additional committee
 members:
 (1) a criminal prosecutor involved in prosecuting
 crimes against children;
 (2) a sheriff;
 (3) a justice of the peace;
 (4) a medical examiner;
 (5) a police chief;
 (6) a pediatrician experienced in diagnosing and
 treating child abuse and neglect;
 (7) a child educator;
 (8) a child mental health provider;
 (9) a public health professional;
 (10) a child protective services specialist;
 (11) a sudden infant death syndrome family service
 provider;
 (12) a neonatologist;
 (13) a child advocate;
 (14) a chief juvenile probation officer;
 (15) a child abuse prevention specialist;
 (16) a representative of the Department of Public
 Safety; and
 (17) a representative of the Texas Department of Motor
 Vehicles [Transportation].
 SUBPART D. FINANCE CODE
 SECTION 8.3D.01. Section 306.001(9), Finance Code, is
 amended to read as follows:
 (9) "Qualified commercial loan":
 (A) means:
 (i) a commercial loan in which one or more
 persons as part of the same transaction lends, advances, borrows,
 or receives, or is obligated to lend or advance or entitled to
 borrow or receive, money or credit with an aggregate value of:
 (a) $3 million or more if the
 commercial loan is secured by real property; or
 (b) $250,000 or more if the commercial
 loan is not secured by real property and, if the aggregate value of
 the commercial loan is less than $500,000, the loan documents
 contain a written certification from the borrower that:
 (1) the borrower has been
 advised by the lender to seek the advice of an attorney and an
 accountant in connection with the commercial loan; and
 (2) the borrower has had the
 opportunity to seek the advice of an attorney and accountant of the
 borrower's choice in connection with the commercial loan; and
 (ii) a renewal or extension of a commercial
 loan described by Paragraph (A), regardless of the principal amount
 of the loan at the time of the renewal or extension; and
 (B) does not include a commercial loan made for
 the purpose of financing a business licensed by the [Motor Vehicle
 Board of the] Texas Department of Motor Vehicles [Transportation]
 under Section 2301.251(a), Occupations Code.
 SECTION 8.3D.02. Section 348.001(10-a), Finance Code, is
 amended to read as follows:
 (10-a) "Towable recreation vehicle" means a
 nonmotorized vehicle that:
 (A) was originally designed and manufactured
 primarily to provide temporary human habitation in conjunction with
 recreational, camping, or seasonal use;
 (B) is titled and registered with the Texas
 Department of Motor Vehicles [Transportation] as a travel trailer
 through a county tax assessor-collector;
 (C) is permanently built on a single chassis;
 (D) contains at least one life support system;
 and
 (E) is designed to be towable by a motor vehicle.
 SECTION 8.3D.03. Section 348.518, Finance Code, is amended
 to read as follows:
 Sec. 348.518. SHARING OF INFORMATION. To ensure consistent
 enforcement of law and minimization of regulatory burdens, the
 commissioner and the Texas Department of Motor Vehicles
 [Transportation] may share information, including criminal history
 information, relating to a person licensed under this chapter.
 Information otherwise confidential remains confidential after it
 is shared under this section.
 SUBPART E. GOVERNMENT CODE
 SECTION 8.3E.01. Section 411.122(d), Government Code, is
 amended to read as follows:
 (d) The following state agencies are subject to this
 section:
 (1) Texas Appraiser Licensing and Certification
 Board;
 (2) Texas Board of Architectural Examiners;
 (3) Texas Board of Chiropractic Examiners;
 (4) State Board of Dental Examiners;
 (5) Texas Board of Professional Engineers;
 (6) Texas Funeral Service Commission;
 (7) Texas Board of Professional Geoscientists;
 (8) Department of State Health Services, except as
 provided by Section 411.110, and agencies attached to the
 department, including:
 (A) Texas State Board of Examiners of Dietitians;
 (B) Texas State Board of Examiners of Marriage
 and Family Therapists;
 (C) Midwifery Board;
 (D) Texas State Perfusionist Advisory Committee
 [Board of Examiners of Perfusionists];
 (E) Texas State Board of Examiners of
 Professional Counselors;
 (F) Texas State Board of Social Worker Examiners;
 (G) State Board of Examiners for Speech-Language
 Pathology and Audiology;
 (H) Advisory Board of Athletic Trainers;
 (I) State Committee of Examiners in the Fitting
 and Dispensing of Hearing Instruments;
 (J) Texas Board of Licensure for Professional
 Medical Physicists; and
 (K) Texas Board of Orthotics and Prosthetics;
 (9) Texas Board of Professional Land Surveying;
 (10) Texas Department of Licensing and Regulation,
 except as provided by Section 411.093;
 (11) Texas Commission on Environmental Quality;
 (12) Texas Board of Occupational Therapy Examiners;
 (13) Texas Optometry Board;
 (14) Texas State Board of Pharmacy;
 (15) Texas Board of Physical Therapy Examiners;
 (16) Texas State Board of Plumbing Examiners;
 (17) Texas State Board of Podiatric Medical Examiners;
 (18) Polygraph Examiners Board;
 (19) Texas State Board of Examiners of Psychologists;
 (20) Texas Real Estate Commission;
 (21) Board of Tax Professional Examiners;
 (22) Texas Department of Transportation;
 (23) State Board of Veterinary Medical Examiners;
 (24) Texas Department of Housing and Community
 Affairs;
 (25) secretary of state;
 (26) state fire marshal;
 (27) Texas Education Agency; [and]
 (28) Department of Agriculture; and
 (29) Texas Department of Motor Vehicles.
 SUBPART F. HEALTH AND SAFETY CODE
 SECTION 8.3F.01. Section 382.209(e), Health and Safety
 Code, is amended to read as follows:
 (e) A vehicle is not eligible to participate in a low-income
 vehicle repair assistance, retrofit, and accelerated vehicle
 retirement program established under this section unless:
 (1) the vehicle is capable of being operated;
 (2) the registration of the vehicle:
 (A) is current; and
 (B) reflects that the vehicle has been registered
 in the county implementing the program for the 12 months preceding
 the application for participation in the program;
 (3) the commissioners court of the county
 administering the program determines that the vehicle meets the
 eligibility criteria adopted by the commission, the Texas
 Department of Motor Vehicles [Transportation], and the Public
 Safety Commission;
 (4) if the vehicle is to be repaired, the repair is
 done by a repair facility recognized by the Department of Public
 Safety, which may be an independent or private entity licensed by
 the state; and
 (5) if the vehicle is to be retired under this
 subsection and Section 382.213, the replacement vehicle is a
 qualifying motor vehicle.
 SECTION 8.3F.02. Section 382.210(f), Health and Safety
 Code, is amended to read as follows:
 (f) In this section, "total cost" means the total amount of
 money paid or to be paid for the purchase of a motor vehicle as set
 forth as "sales price" in the form entitled "Application for Texas
 Certificate of Title" promulgated by the Texas Department of Motor
 Vehicles [Transportation]. In a transaction that does not involve
 the use of that form, the term means an amount of money that is
 equivalent, or substantially equivalent, to the amount that would
 appear as "sales price" on the Application for Texas Certificate of
 Title if that form were involved.
 SECTION 8.3F.03. Section 461.017(a), Health and Safety
 Code, is amended to read as follows:
 (a) The Drug Demand Reduction Advisory Committee is
 composed of the following members:
 (1) five representatives of the public from different
 geographic regions of the state who have knowledge and expertise in
 issues relating to reducing drug demand and who are appointed by the
 commissioner [executive director] of the Department of State Health
 Services [Texas Commission on Alcohol and Drug Abuse]; and
 (2) one representative of each of the following
 agencies or offices who is appointed by the executive director or
 commissioner of the agency or office and who is directly involved in
 the agency's or office's policies, programs, or funding activities
 relating to reducing drug demand:
 (A) the criminal justice division of the
 governor's office;
 (B) the Criminal Justice Policy Council;
 (C) the Department of Family and Protective [and
 Regulatory] Services;
 (D) the Department of Public Safety of the State
 of Texas;
 (E) the Health and Human Services Commission;
 (F) the Texas Alcoholic Beverage Commission;
 (G) the Department of State Health Services
 [Texas Commission on Alcohol and Drug Abuse];
 (H) the Texas Council on Offenders with Mental
 Impairments;
 (I) the Texas Department of Criminal Justice;
 (J) the [Texas Department of] Health and[;
 [(K) the Texas Department of] Human Services
 Commission;
 (K) [(L)] the [Texas] Department of Aging and
 Disability Services [Mental Health and Mental Retardation];
 (L) [(M)] the Texas Education Agency;
 (M) [(N)] the Texas Juvenile Probation
 Commission;
 (N) [(O)] the Texas Youth Commission;
 (O) [(P)] the Department of Assistive and
 Rehabilitative Services [Texas Rehabilitation Commission];
 (P) [(Q)] the Texas Workforce Commission;
 (Q) [(R)] the Texas Department of Motor Vehicles
 [Transportation];
 (R) [(S)] the comptroller of public accounts;
 and
 (S) [(T)] the adjutant general's department.
 SUBPART G. HUMAN RESOURCES CODE
 SECTION 8.3G.01. Section 22.041, Human Resources Code, is
 amended to read as follows:
 Sec. 22.041. THIRD-PARTY INFORMATION. Notwithstanding any
 other provision of this code, the department may use information
 obtained from a third party to verify the assets and resources of a
 person for purposes of determining the person's eligibility and
 need for medical assistance, financial assistance, or nutritional
 assistance. Third-party information includes information obtained
 from:
 (1) a consumer reporting agency, as defined by Section
 20.01, Business & Commerce Code;
 (2) an appraisal district; or
 (3) the Texas Department of Motor Vehicles
 [Transportation's] vehicle registration record database.
 SECTION 8.3G.02. Section 32.026(g), Human Resources Code,
 is amended to read as follows:
 (g) Notwithstanding any other provision of this code, the
 department may use information obtained from a third party to
 verify the assets and resources of a person for purposes of
 determining the person's eligibility and need for medical
 assistance. Third-party information includes information obtained
 from:
 (1) a consumer reporting agency, as defined by Section
 20.01, Business & Commerce Code;
 (2) an appraisal district; or
 (3) the Texas Department of Motor Vehicles
 [Transportation's] vehicle registration record database.
 SUBPART H. LOCAL GOVERNMENT CODE
 SECTION 8.3H.01. Section 130.006, Local Government Code, is
 amended to read as follows:
 Sec. 130.006. PROCEDURES FOR COLLECTION OF DISHONORED
 CHECKS AND INVOICES. A county tax assessor-collector may establish
 procedures for the collection of dishonored checks and credit card
 invoices. The procedures may include:
 (1) official notification to the maker that the check
 or invoice has not been honored and that the receipt, registration,
 certificate, or other instrument issued on the receipt of the check
 or invoice is not valid until payment of the fee or tax is made;
 (2) notification of the sheriff or other law
 enforcement officers that a check or credit card invoice has not
 been honored and that the receipt, registration, certificate, or
 other instrument held by the maker is not valid; and
 (3) notification to the Texas Department of Motor
 Vehicles [Transportation], the comptroller of public accounts, or
 the Department of Public Safety that the receipt, registration,
 certificate, or other instrument held by the maker is not valid.
 SECTION 8.3H.02. Section 130.007, Local Government Code, is
 amended to read as follows:
 Sec. 130.007. REMISSION TO STATE NOT REQUIRED; STATE
 ASSISTANCE IN COLLECTION. (a) If a fee or tax is required to be
 remitted to the comptroller or the Texas Department of Motor
 Vehicles [Transportation] and if payment was made to the county tax
 assessor-collector by a check that was not honored by the drawee
 bank or by a credit card invoice that was not honored by the credit
 card issuer, the amount of the fee or tax is not required to be
 remitted, but the assessor-collector shall notify the appropriate
 department of:
 (1) the amount of the fee or tax;
 (2) the type of fee or tax involved; and
 (3) the name and address of the maker.
 (b) The Texas Department of Motor Vehicles [Transportation]
 and the comptroller shall assist the county tax assessor-collector
 in collecting the fee or tax and may cancel or revoke any receipt,
 registration, certificate, or other instrument issued in the name
 of the state conditioned on the payment of the fee or tax.
 SECTION 8.3H.03. Section 130.008, Local Government Code, is
 amended to read as follows:
 Sec. 130.008. LIABILITY OF TAX COLLECTOR FOR VIOLATIONS OF
 SUBCHAPTER. If the comptroller or the Texas Department of Motor
 Vehicles [Transportation] determines that the county tax
 assessor-collector has accepted payment for fees and taxes to be
 remitted to that department in violation of Section 130.004 or that
 more than two percent of the fees and taxes to be received from the
 assessor-collector are not remitted because of the acceptance of
 checks that are not honored by the drawee bank or of credit card
 invoices that are not honored by the credit card issuer, the
 department may notify the assessor-collector that the
 assessor-collector may not accept a check or credit card invoice
 for the payment of any fee or tax to be remitted to that department.
 A county tax assessor-collector who accepts a check or credit card
 invoice for the payment of a fee or tax, after notice that the
 assessor-collector may not receive a check or credit card invoice
 for the payment of fees or taxes to be remitted to a department, is
 liable to the state for the amount of the check or credit card
 invoice accepted.
 SECTION 8.3H.04. Section 130.009, Local Government Code, is
 amended to read as follows:
 Sec. 130.009. STATE RULES. The comptroller and the Texas
 Department of Motor Vehicles [Transportation] may make rules
 concerning the acceptance of checks or credit card invoices by a
 county tax assessor-collector and for the collection of dishonored
 checks or credit card invoices.
 SUBPART I. OCCUPATIONS CODE
 SECTION 8.3I.01. Section 554.009(c), Occupations Code, is
 amended to read as follows:
 (c) The board may register a vehicle with the Texas
 Department of Motor Vehicles [Transportation] in an alias name only
 for investigative personnel.
 SUBPART J. PENAL CODE
 SECTION 8.3J.01. Section 31.03(c), Penal Code, is amended
 to read as follows:
 (c) For purposes of Subsection (b):
 (1) evidence that the actor has previously
 participated in recent transactions other than, but similar to,
 that which the prosecution is based is admissible for the purpose of
 showing knowledge or intent and the issues of knowledge or intent
 are raised by the actor's plea of not guilty;
 (2) the testimony of an accomplice shall be
 corroborated by proof that tends to connect the actor to the crime,
 but the actor's knowledge or intent may be established by the
 uncorroborated testimony of the accomplice;
 (3) an actor engaged in the business of buying and
 selling used or secondhand personal property, or lending money on
 the security of personal property deposited with the actor, is
 presumed to know upon receipt by the actor of stolen property (other
 than a motor vehicle subject to Chapter 501, Transportation Code)
 that the property has been previously stolen from another if the
 actor pays for or loans against the property $25 or more (or
 consideration of equivalent value) and the actor knowingly or
 recklessly:
 (A) fails to record the name, address, and
 physical description or identification number of the seller or
 pledgor;
 (B) fails to record a complete description of the
 property, including the serial number, if reasonably available, or
 other identifying characteristics; or
 (C) fails to obtain a signed warranty from the
 seller or pledgor that the seller or pledgor has the right to
 possess the property. It is the express intent of this provision
 that the presumption arises unless the actor complies with each of
 the numbered requirements;
 (4) for the purposes of Subdivision (3)(A),
 "identification number" means driver's license number, military
 identification number, identification certificate, or other
 official number capable of identifying an individual;
 (5) stolen property does not lose its character as
 stolen when recovered by any law enforcement agency;
 (6) an actor engaged in the business of obtaining
 abandoned or wrecked motor vehicles or parts of an abandoned or
 wrecked motor vehicle for resale, disposal, scrap, repair,
 rebuilding, demolition, or other form of salvage is presumed to
 know on receipt by the actor of stolen property that the property
 has been previously stolen from another if the actor knowingly or
 recklessly:
 (A) fails to maintain an accurate and legible
 inventory of each motor vehicle component part purchased by or
 delivered to the actor, including the date of purchase or delivery,
 the name, age, address, sex, and driver's license number of the
 seller or person making the delivery, the license plate number of
 the motor vehicle in which the part was delivered, a complete
 description of the part, and the vehicle identification number of
 the motor vehicle from which the part was removed, or in lieu of
 maintaining an inventory, fails to record the name and certificate
 of inventory number of the person who dismantled the motor vehicle
 from which the part was obtained;
 (B) fails on receipt of a motor vehicle to obtain
 a certificate of authority, sales receipt, or transfer document as
 required by Chapter 683, Transportation Code, or a certificate of
 title showing that the motor vehicle is not subject to a lien or
 that all recorded liens on the motor vehicle have been released; or
 (C) fails on receipt of a motor vehicle to
 immediately remove an unexpired license plate from the motor
 vehicle, to keep the plate in a secure and locked place, or to
 maintain an inventory, on forms provided by the Texas Department of
 Motor Vehicles [Transportation], of license plates kept under this
 paragraph, including for each plate or set of plates the license
 plate number and the make, motor number, and vehicle identification
 number of the motor vehicle from which the plate was removed;
 (7) an actor who purchases or receives a used or
 secondhand motor vehicle is presumed to know on receipt by the actor
 of the motor vehicle that the motor vehicle has been previously
 stolen from another if the actor knowingly or recklessly:
 (A) fails to report to the Texas Department of
 Motor Vehicles [Transportation] the failure of the person who sold
 or delivered the motor vehicle to the actor to deliver to the actor
 a properly executed certificate of title to the motor vehicle at the
 time the motor vehicle was delivered; or
 (B) fails to file with the county tax
 assessor-collector of the county in which the actor received the
 motor vehicle, not later than the 20th day after the date the actor
 received the motor vehicle, the registration license receipt and
 certificate of title or evidence of title delivered to the actor in
 accordance with Subchapter D, Chapter 520, Transportation Code, at
 the time the motor vehicle was delivered;
 (8) an actor who purchases or receives from any source
 other than a licensed retailer or distributor of pesticides a
 restricted-use pesticide or a state-limited-use pesticide or a
 compound, mixture, or preparation containing a restricted-use or
 state-limited-use pesticide is presumed to know on receipt by the
 actor of the pesticide or compound, mixture, or preparation that
 the pesticide or compound, mixture, or preparation has been
 previously stolen from another if the actor:
 (A) fails to record the name, address, and
 physical description of the seller or pledgor;
 (B) fails to record a complete description of the
 amount and type of pesticide or compound, mixture, or preparation
 purchased or received; and
 (C) fails to obtain a signed warranty from the
 seller or pledgor that the seller or pledgor has the right to
 possess the property; and
 (9) an actor who is subject to Section 409, Packers and
 Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
 a commission merchant by representing that the actor will make
 prompt payment is presumed to have induced the commission
 merchant's consent by deception if the actor fails to make full
 payment in accordance with Section 409, Packers and Stockyards Act
 (7 U.S.C. Section 228b).
 SECTION 8.3J.02. Section 31.11(b), Penal Code, is amended
 to read as follows:
 (b) It is an affirmative defense to prosecution under this
 section that the person was:
 (1) the owner or acting with the effective consent of
 the owner of the property involved;
 (2) a peace officer acting in the actual discharge of
 official duties; or
 (3) acting with respect to a number assigned to a
 vehicle by the Texas Department of Transportation or the Texas
 Department of Motor Vehicles, as applicable, and the person was:
 (A) in the actual discharge of official duties as
 an employee or agent of the department; or
 (B) in full compliance with the rules of the
 department as an applicant for an assigned number approved by the
 department.
 SUBPART K. TAX CODE
 SECTION 8.3K.01. Section 21.02(d), Tax Code, is amended to
 read as follows:
 (d) A motor vehicle does not have taxable situs in a taxing
 unit under Subsection (a)(1) if, on January 1, the vehicle:
 (1) has been located for less than 60 days at a place
 of business of a person who holds a wholesale motor vehicle auction
 general distinguishing number issued by the Texas Department of
 Motor Vehicles [Transportation] under Chapter 503, Transportation
 Code, for that place of business; and
 (2) is offered for resale.
 SECTION 8.3K.02. Section 22.04(d), Tax Code, is amended to
 read as follows:
 (d) This section does not apply to a motor vehicle that on
 January 1 is located at a place of business of a person who holds a
 wholesale motor vehicle auction general distinguishing number
 issued by the Texas Department of Motor Vehicles [Transportation]
 under Chapter 503, Transportation Code, for that place of business,
 and that:
 (1) has not acquired taxable situs under Section
 21.02(a)(1) in a taxing unit that participates in the appraisal
 district because the vehicle is described by Section 21.02(d);
 (2) is offered for sale by a dealer who holds a
 dealer's general distinguishing number issued by the Texas
 Department of Motor Vehicles [Transportation] under Chapter 503,
 Transportation Code, and whose inventory of motor vehicles is
 subject to taxation in the manner provided by Sections 23.121 and
 23.122; or
 (3) is collateral possessed by a lienholder and
 offered for sale in foreclosure of a security interest.
 SECTION 8.3K.03. Sections 23.121(a)(3), (11), and (14), Tax
 Code, are amended to read as follows:
 (3) "Dealer" means a person who holds a dealer's
 general distinguishing number issued by the Texas Department of
 Motor Vehicles [Transportation] under the authority of Chapter 503,
 Transportation Code, or who is legally recognized as a motor
 vehicle dealer pursuant to the law of another state and who complies
 with the terms of Section 152.063(f). The term does not include:
 (A) a person who holds a manufacturer's license
 issued under Chapter 2301, Occupations Code [by the Motor Vehicle
 Board of the Texas Department of Transportation];
 (B) an entity that is owned or controlled by a
 person who holds a manufacturer's license issued under Chapter
 2301, Occupations Code [by the Motor Vehicle Board of the Texas
 Department of Transportation]; or
 (C) a dealer whose general distinguishing number
 issued by the Texas Department of Motor Vehicles [Transportation]
 under the authority of Chapter 503, Transportation Code, prohibits
 the dealer from selling a vehicle to any person except a dealer.
 (11) "Sales price" means the total amount of money
 paid or to be paid for the purchase of a motor vehicle as set forth
 as "sales price" in the form entitled "Application for Texas
 Certificate of Title" promulgated by the Texas Department of Motor
 Vehicles [Transportation]. In a transaction that does not involve
 the use of that form, the term means an amount of money that is
 equivalent, or substantially equivalent, to the amount that would
 appear as "sales price" on the Application for Texas Certificate of
 Title if that form were involved.
 (14) "Towable recreational vehicle" means a
 nonmotorized vehicle that is designed for temporary human
 habitation for recreational, camping, or seasonal use and:
 (A) is titled and registered with the Texas
 Department of Motor Vehicles [Transportation] through the office of
 the collector;
 (B) is permanently built on a single chassis;
 (C) contains one or more life support systems;
 and
 (D) is designed to be towable by a motor vehicle.
 SECTION 8.3K.04. Sections 23.121(f), (g), and (h), Tax
 Code, are amended to read as follows:
 (f) The comptroller shall promulgate a form entitled
 Dealer's Motor Vehicle Inventory Declaration. Except as provided
 by Section 23.122(l) [of this code], not later than February 1 of
 each year, or, in the case of a dealer who was not in business on
 January 1, not later than 30 days after commencement of business,
 each dealer shall file a declaration with the chief appraiser and
 file a copy with the collector. For purposes of this subsection, a
 dealer is presumed to have commenced business on the date of
 issuance to the dealer of a dealer's general distinguishing number
 as provided by Chapter 503, Transportation Code. Notwithstanding
 the presumption created by this subsection, a chief appraiser may,
 at his or her sole discretion, designate as the date on which a
 dealer commenced business a date other than the date of issuance to
 the dealer of a dealer's general distinguishing number. The
 declaration is sufficient to comply with this subsection if it sets
 forth the following information:
 (1) the name and business address of each location at
 which the dealer owner conducts business;
 (2) each of the dealer's general distinguishing
 numbers issued by the Texas Department of Motor Vehicles
 [Transportation];
 (3) a statement that the dealer owner is the owner of a
 dealer's motor vehicle inventory; and
 (4) the market value of the dealer's motor vehicle
 inventory for the current tax year as computed under Section
 23.121(b) [of this code].
 (g) Under the terms provided by this subsection, the chief
 appraiser may examine the books and records of the holder of a
 general distinguishing number issued by the Texas Department of
 Motor Vehicles [Transportation]. A request made under this
 subsection must be made in writing, delivered personally to the
 custodian of the records, at the location for which the general
 distinguishing number has been issued, must provide a period not
 less than 15 days for the person to respond to the request, and must
 state that the person to whom it is addressed has the right to seek
 judicial relief from compliance with the request. In a request made
 under this section the chief appraiser may examine:
 (1) the document issued by the Texas Department of
 Motor Vehicles [Transportation] showing the person's general
 distinguishing number;
 (2) documentation appropriate to allow the chief
 appraiser to ascertain the applicability of this section and
 Section 23.122 [of this code] to the person;
 (3) sales records to substantiate information set
 forth in the dealer's declaration filed by the person.
 (h) If a dealer fails to file a declaration as required by
 this section, or if, on the declaration required by this section, a
 dealer reports the sale of fewer than five motor vehicles in the
 prior year, the chief appraiser shall report that fact to the Texas
 Department of Motor Vehicles [Transportation] and the department
 shall initiate termination proceedings. The chief appraiser shall
 include with the report a copy of a declaration, if any, indicating
 the sale by a dealer of fewer than five motor vehicles in the prior
 year. A report by a chief appraiser to the Texas Department of
 Motor Vehicles [Transportation] as provided by this subsection is
 prima facie grounds for the cancellation of the dealer's general
 distinguishing number under Section 503.038(a)(9), Transportation
 Code, or for refusal by the Texas Department of Motor Vehicles
 [Transportation] to renew the dealer's general distinguishing
 number.
 SECTION 8.3K.05. Section 23.123(c), Tax Code, is amended to
 read as follows:
 (c) Information made confidential by this section may be
 disclosed:
 (1) in a judicial or administrative proceeding
 pursuant to a lawful subpoena;
 (2) to the person who filed the declaration or
 statement or to that person's representative authorized by the
 person in writing to receive the information;
 (3) to the comptroller or an employee of the
 comptroller authorized by the comptroller to receive the
 information;
 (4) to a collector or chief appraiser;
 (5) to a district attorney, criminal district attorney
 or county attorney involved in the enforcement of a penalty imposed
 pursuant to Section 23.121 or Section 23.122 [of this code];
 (6) for statistical purposes if in a form that does not
 identify specific property or a specific property owner;
 (7) if and to the extent that the information is
 required for inclusion in a public document or record that the
 appraisal or collection office is required by law to prepare or
 maintain; or
 (8) to the Texas Department of Motor Vehicles
 [Transportation] for use by that department in auditing compliance
 of its licensees with appropriate provisions of applicable law.
 SECTION 8.3K.06. Section 23.124(a)(11), Tax Code, is
 amended to read as follows:
 (11) "Sales price" means the total amount of money
 paid or to be paid for the purchase of:
 (A) a vessel, other than a trailer that is
 treated as a vessel, as set forth as "sales price" in the form
 entitled "Application for Texas Certificate of Number/Title for
 Boat/Seller, Donor or Trader's Affidavit" promulgated by the Parks
 and Wildlife Department;
 (B) an outboard motor as set forth as "sales
 price" in the form entitled "Application for Texas Certificate of
 Title for an Outboard Motor/Seller, Donor or Trader's Affidavit"
 promulgated by the Parks and Wildlife Department; or
 (C) a trailer that is treated as a vessel as set
 forth as "sales price" in the form entitled "Application for Texas
 Certificate of Title" promulgated by the Texas Department of Motor
 Vehicles [Transportation].
 In a transaction involving a vessel, an outboard motor,
 or a trailer that is treated as a vessel that does not involve the
 use of one of these forms, the term means an amount of money that is
 equivalent, or substantially equivalent, to the amount that would
 appear as "sales price" on the Application for Texas Certificate of
 Number/Title for Boat/Seller, Donor or Trader's Affidavit, the
 Application for Texas Certificate of Title for an Outboard
 Motor/Seller, Donor or Trader's Affidavit, or the Application for
 Texas Certificate of Title if one of these forms were involved.
 SECTION 8.3K.07. Section 113.011, Tax Code, is amended to
 read as follows:
 Sec. 113.011. LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR
 VEHICLES [TRANSPORTATION]. The comptroller shall furnish to the
 Texas Department of Motor Vehicles [Transportation] each release of
 a tax lien filed by the comptroller with that department.
 SECTION 8.3K.08. Sections 152.0412(a) and (f), Tax Code,
 are amended to read as follows:
 (a) In this section, "standard presumptive value" means the
 private-party transaction value of a motor vehicle, as determined
 by the Texas Department of Motor Vehicles [Transportation] based on
 an appropriate regional guidebook of a nationally recognized motor
 vehicle value guide service, or based on another motor vehicle
 guide publication that the department determines is appropriate if
 a private-party transaction value for the motor vehicle is not
 available from a regional guidebook described by this subsection.
 (f) The Texas Department of Motor Vehicles [Transportation]
 shall maintain information on the standard presumptive values of
 motor vehicles as part of the department's registration and title
 system. The department shall update the information at least
 quarterly each calendar year and publish, electronically or
 otherwise, the updated information.
 SECTION 8.3K.09. Section 152.042, Tax Code, is amended to
 read as follows:
 Sec. 152.042. COLLECTION OF TAX ON METAL DEALER PLATES. A
 person required to pay the tax imposed by Section 152.027 shall pay
 the tax to the Texas Department of Motor Vehicles [Transportation],
 and the department may not issue the metal dealer's plates until the
 tax is paid.
 SECTION 8.3K.10. Section 152.121(b), Tax Code, is amended
 to read as follows:
 (b) Taxes on metal dealer plates collected by the Texas
 Department of Motor Vehicles [Transportation] shall be deposited by
 the department in the state treasury in the same manner as are other
 taxes collected under this chapter.
 SECTION 8.3K.11. Section 162.001(52), Tax Code, is amended
 to read as follows:
 (52) "Registered gross weight" means the total weight
 of the vehicle and carrying capacity shown on the registration
 certificate issued by the Texas Department of Motor Vehicles
 [Transportation].
 PART 4. TRANSFERS OF CERTAIN POWERS, DUTIES, OBLIGATIONS, AND
 RIGHTS OF ACTION
 SECTION 8.4.01. (a) All powers, duties, obligations, and
 rights of action of the Motor Carrier Division, the Motor Vehicle
 Division, and the Vehicle Titles and Registration Division of the
 Texas Department of Transportation are transferred to the Texas
 Department of Motor Vehicles, and all powers, duties, obligations,
 and rights of action of the Texas Transportation Commission in
 connection or associated with those divisions of the Texas
 Department of Transportation are transferred to the board of the
 Texas Department of Motor Vehicles on December 1, 2009.
 (b) In connection with the transfers required by Subsection
 (a) of this section, the personnel, furniture, computers, other
 property and equipment, files, and related materials used by the
 Motor Carrier Division, the Motor Vehicle Division, and the Vehicle
 Titles and Registration Division of the Texas Department of
 Transportation are transferred to the Texas Department of Motor
 Vehicles.
 (c) The Texas Department of Motor Vehicles shall continue
 any proceeding involving the Motor Carrier Division, the Motor
 Vehicle Division, or the Vehicle Titles and Registration Division
 of the Texas Department of Transportation that was brought before
 the effective date of this Act in accordance with the law in effect
 on the date the proceeding was brought, and the former law is
 continued in effect for that purpose.
 (d) A certificate, license, document, permit, registration,
 or other authorization issued by the Motor Carrier Division, the
 Motor Vehicle Division, or the Vehicle Titles and Registration
 Division of the Texas Department of Transportation that is in
 effect on the effective date of this Act remains valid for the
 period for which it was issued unless suspended or revoked by the
 Texas Department of Motor Vehicles.
 (e) A rule adopted by the Texas Transportation Commission or
 the director of the Texas Department of Transportation in
 connection with or relating to the Motor Carrier Division, the
 Motor Vehicle Division, or the Vehicle Titles and Registration
 Division of that department continues in effect until it is amended
 or repealed by the board of the Texas Department of Motor Vehicles.
 (f) The unobligated and unexpended balance of any
 appropriations made to the Texas Department of Transportation in
 connection with or relating to the Motor Carrier Division, the
 Motor Vehicle Division, and the Vehicle Titles and Registration
 Division of that department for the state fiscal biennium ending
 August 31, 2009, is transferred and reappropriated to the Texas
 Department of Motor Vehicles for the purpose of implementing the
 powers, duties, obligations, and rights of action transferred to
 that department under Subsection (a) of this section.
 SECTION 8.4.02. The Transportation Legislative Oversight
 Committee shall oversee the coordination and collaboration between
 the Texas Department of Transportation and the Texas Department of
 Motor Vehicles during the transitions required by Section 8.4.01 of
 this article.
 PART 5. APPOINTMENT OF BOARD
 SECTION 8.5.01. Not later than December 1, 2009, the
 governor shall appoint the members of the board of the Texas
 Department of Motor Vehicles in accordance with Subchapter B,
 Chapter 1001, Transportation Code, as added by this article.
 ARTICLE 9. RAIL TRANSPORTATION DIVISION
 SECTION 9.01. Section 91.001, Transportation Code, is
 amended by adding Subdivision (3-a) to read as follows:
 (3-a)  "Division" means the rail transportation
 division of the department.
 SECTION 9.02. Subchapter A, Chapter 91, Transportation
 Code, is amended by adding Section 91.0041 to read as follows:
 Sec. 91.0041.  DUTIES OF RAIL TRANSPORTATION DIVISION. In
 addition to any other duty imposed on the division, the division
 shall:
 (1)  assure that rail transportation is an integral
 part of the department's transportation planning process;
 (2)  coordinate and oversee rail projects that are
 financed with money distributed by the department, including money
 from the Texas rail relocation and improvement fund;
 (3)  develop and plan for improved passenger and
 freight rail facilities and services in this state; and
 (4)  coordinate the efforts of the department, the
 federal government, political subdivisions, and private entities
 to continue the development of rail transportation facilities and
 services in this state.
 SECTION 9.03. Subtitle I, Title 5, Transportation Code, is
 amended by adding Chapter 175 to read as follows:
 CHAPTER 175. BORDER REGION HIGHER-SPEED RAIL AUTHORITIES
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 175.001. DEFINITIONS. In this chapter:
 (1)  "Authority" means a border region higher-speed
 rail authority created under this chapter.
 (2)  "Authority property" means all property an
 authority owns or leases under a long-term lease.
 (3) "Board" means an authority's board of directors.
 (4)  "Border region" means the Texas-Louisiana border
 region or the Texas-Mexico border region, as defined by Section
 2056.002, Government Code.
 (5)  "Commission" means the Texas Transportation
 Commission.
 (6)  "Department" means the Texas Department of
 Transportation.
 (7) "Director" means a board member.
 (8)  "Higher-speed rail" means the rail technology that
 permits the operation of rolling stock between scheduled stops at
 speeds greater than 70 miles per hour but less than 110 miles per
 hour.
 (9)  "Higher-speed rail facility" means any property
 necessary for the transportation of passengers and baggage between
 points in a border region by higher-speed rail. The term includes
 rolling stock, locomotives, stations, parking areas, and rail
 lines.
 (10)  "System" means all of the higher-speed rail and
 intermodal facilities leased or owned by or operated on behalf of an
 authority.
 [Sections 175.002-175.050 reserved for expansion]
 SUBCHAPTER B. CREATION
 Sec. 175.051.  CREATION OF AUTHORITIES. The commission by
 order may authorize the creation of an authority in each border
 region for the purposes of financing, acquiring property for,
 constructing, maintaining, operating, and improving a higher-speed
 rail system in each border region.
 [Sections 175.052-175.100 reserved for expansion]
 SUBCHAPTER C. GOVERNANCE
 Sec. 175.101.  COMPOSITION OF BOARDS. (a) The governing
 body of an authority in the Texas-Louisiana border region is a board
 of seven directors consisting of:
 (1)  the county judges of the five most populous
 counties in the region; and
 (2)  two directors selected by the county judges to
 represent the remaining counties in the region.
 (b)  The governing body of an authority in the Texas-Mexico
 border region is a board of 11 directors consisting of:
 (1)  the county judges of the seven most populous
 counties in the region; and
 (2)  four directors selected by the county judges to
 represent the remaining counties in the region.
 Sec. 175.102.  PRESIDING OFFICER. (a) The directors shall
 elect one director as presiding officer.
 (b)  The presiding officer may select another director to
 preside in the absence of the presiding officer.
 Sec. 175.103.  MEETINGS. The presiding officer shall call
 at least one meeting of the board each year and may call other
 meetings as the presiding officer determines are appropriate.
 Sec. 175.104.  COMPENSATION; REIMBURSEMENT. A director is
 not entitled to compensation for serving as a director but is
 entitled to reimbursement for reasonable expenses incurred while
 serving as a director.
 Sec. 175.105.  RULES FOR PROCEEDINGS. The board shall adopt
 rules for its proceedings and appoint an executive committee.
 Sec. 175.106.  EMPLOYEES. The board may employ and
 compensate persons to carry out the powers and duties of the
 authority.
 Sec. 175.107.  CONFLICTS OF INTEREST. Chapter 171, Local
 Government Code, applies to a director.
 [Sections 175.108-175.150 reserved for expansion]
 SUBCHAPTER D. POWERS AND DUTIES OF AUTHORITY
 Sec. 175.151.  NATURE OF AUTHORITY. (a) An authority is a
 public body and a political subdivision of the state exercising
 public and essential governmental functions.
 (b)  An authority, in the exercise of powers under this
 chapter, is performing only governmental functions and is a
 governmental unit within the meaning of Chapter 101, Civil Practice
 and Remedies Code.
 Sec. 175.152.  GENERAL POWERS OF AUTHORITY. An authority
 has all the powers necessary or convenient to carry out the purposes
 of this chapter.
 Sec. 175.153.  SUNSET REVIEW. An authority is subject every
 12th year to review under Chapter 325, Government Code (Texas
 Sunset Act).
 Sec. 175.154. SUITS. (a) An authority may:
 (1) sue and be sued;
 (2)  institute and prosecute suits without giving
 security for costs; and
 (3)  appeal from a judgment without giving a
 supersedeas or cost bond.
 (b)  An action at law or in equity against an authority must
 be brought in the county in which a principal office of the
 authority is located, except that in an eminent domain proceeding
 involving an interest in land, suit must be brought in the county in
 which the land is located.
 Sec. 175.155.  POWERS RELATED TO DISTRICT PROPERTY. An
 authority may acquire by grant, purchase, gift, devise, lease, or
 otherwise and may hold, use, sell, lease, or dispose of real and
 personal property, licenses, patents, rights, and interests
 necessary, convenient, or useful for the full exercise of its
 powers.
 Sec. 175.156.  GENERAL AUTHORITY OVER HIGHER-SPEED RAIL
 FACILITIES. An authority may acquire, construct, develop, own,
 operate, maintain, and improve intermodal and higher-speed rail
 facilities to connect political subdivisions in the applicable
 border region.
 Sec. 175.157.  USE AND ALTERATION OF PROPERTY OF ANOTHER
 POLITICAL SUBDIVISION. (a) For a purpose described by Section
 175.156, as necessary or useful in the construction,
 reconstruction, repair, maintenance, operation, and improvement of
 the system, and with the consent of a municipality, county, or other
 political subdivision, an authority may:
 (1)  use streets, alleys, roads, highways, and other
 public ways of the municipality, county, or other political
 subdivision; and
 (2)  relocate, raise, reroute, change the grade of, or
 alter, at the authority's expense, the construction of any publicly
 owned or privately owned street, alley, highway, road, railroad,
 electric line or facility, telegraph or telephone property and
 facility, pipeline or facility, conduit or facility, and other
 property.
 (b) An authority may not use or alter:
 (1)  a road or highway that is part of the state highway
 system without the permission of the commission; or
 (2) a railroad without permission of the railroad.
 Sec. 175.158.  ACQUISITION OF PROPERTY. (a) An authority
 may purchase any interest in real property to acquire, construct,
 operate, or improve a higher-speed rail facility on terms and at a
 price to which the authority and the owner agree.
 (b)  The governing body of a municipality, a county, any
 other political subdivision, or a public agency may convey the
 title or the rights and easements to any property needed by an
 authority for its purposes in connection with the acquisition,
 construction, operation, or improvement of the system.
 Sec. 175.159.  EMINENT DOMAIN. (a) An authority may
 exercise the power of eminent domain to acquire:
 (1) real property in fee simple; or
 (2)  an interest in real property less than fee simple
 in, on, under, or above land, including an easement, right-of-way,
 or right of use of airspace or subsurface space.
 (b)  The power of eminent domain under this section does not
 apply to:
 (1) land under the jurisdiction of the department; or
 (2)  a rail line owned by a common carrier or
 municipality.
 (c)  To the extent possible, an authority shall use existing
 rail or intermodal transportation corridors for the alignment of
 its system.
 (d)  An eminent domain proceeding is begun by the board's
 adoption of a resolution declaring that the authority's acquisition
 of the property or interest described in the resolution:
 (1) is a public necessity; and
 (2)  is necessary and proper for the construction,
 extension, improvement, or development of higher-speed rail
 facilities and is in the public interest.
 (e)  The resolution is conclusive evidence of the public
 necessity of the proposed acquisition and that the real property or
 interest in property is necessary for public use.
 (f)  With the consent of the property owner, instead of
 paying for real property with a single fixed payment, an authority
 may pay the owner in the form of:
 (1)  an intangible legal right to receive a percentage
 of identified fees related to the applicable segment of the system;
 or
 (2)  an exclusive or nonexclusive right to use or
 operate a part of the system.
 Sec. 175.160.  AGREEMENTS WITH OTHER ENTITIES FOR JOINT USE.
 An authority may:
 (1)  make agreements with a public utility, private
 utility, communication system, common carrier, state agency, or
 transportation system for the joint use of facilities,
 installations, or properties inside or outside the border region;
 and
 (2) establish through routes and joint fares.
 Sec. 175.161.  RULES. To protect the health, safety, and
 general welfare of residents of the border region and people who use
 the authority's services, an authority may adopt rules to govern
 the operation of the authority, its employees, the system, service
 provided by the authority, and any other necessary matter
 concerning its purposes, including rules relating to health,
 safety, alcohol or beverage service, food service, and telephone
 and utility services.
 Sec. 175.162.  JOINT OWNERSHIP AGREEMENTS. An authority may
 enter into a joint ownership agreement with any person.
 Sec. 175.163.  COMPENSATION FOR USE OF SYSTEM FACILITIES.
 (a) An authority shall establish and maintain reasonable and
 nondiscriminatory rates or other compensation for the use of the
 facilities of the system acquired, constructed, operated,
 regulated, or maintained by the authority.
 (b)  Together with grants received by the authority, the
 rates or other compensation must be sufficient to produce revenues
 adequate to:
 (1)  pay all expenses necessary for the operation and
 maintenance of the properties and facilities of the authority;
 (2)  pay the interest on and principal of bonds issued
 by the authority and payable in whole or in part from the revenues,
 as they become due and payable; and
 (3)  comply with the terms of an agreement made with the
 holders of bonds or with any person in their behalf.
 Sec. 175.164.  AGREEMENTS GENERALLY. An authority may make
 contracts, leases, and agreements with, and accept grants and loans
 from, the United States, this state, agencies and political
 subdivisions of this state or another state of the United States,
 the United Mexican States, or a state of the United Mexican States,
 and other persons and entities and may perform any act necessary for
 the full exercise of the powers vested in it.
 Sec. 175.165.  INTERLOCAL AGREEMENTS WITH COMMISSION. The
 commission may enter into an interlocal agreement with an authority
 under which the authority may exercise a power or duty of the
 commission for the development and efficient operation of an
 intermodal corridor in the applicable border region.
 Sec. 175.166.  ACQUISITION OF ROLLING STOCK AND OTHER
 PROPERTY. An authority may acquire rolling stock or other property
 under conditional sales contracts, leases, equipment trust
 certificates, or any other form of contract or trust agreement.
 Sec. 175.167.  LIMIT ON POWER. A revenue bond indenture may
 limit the exercise of the powers granted by this subchapter, and a
 limit applies as long as the revenue bonds issued under the
 indenture are outstanding and unpaid.
 Sec. 175.168.  RULES GOVERNING SYSTEM AND ROUTINGS. An
 authority by resolution may adopt rules governing the use,
 operation, and maintenance of the system and may determine all
 routings and change them as the board considers advisable.
 Sec. 175.169.  OPERATION OR USE CONTRACTS. (a) An authority
 may:
 (1)  lease all or part of the higher-speed rail
 facilities to an operator; or
 (2)  contract for the use or operation of all or part of
 the higher-speed rail facilities by an operator.
 (b)  To the maximum extent practicable, an authority shall
 encourage the participation of private enterprise in the operation
 of higher-speed rail facilities.
 (c)  The term of an operating contract under this section may
 not exceed 20 years.
 Sec. 175.170.  RAIL TRANSPORTATION SERVICES AGREEMENTS WITH
 OTHER POLITICAL SUBDIVISIONS. An authority may contract with a
 county or other political subdivision of this state for the
 authority to provide higher-speed rail transportation services to
 an area outside the border region on the terms and conditions to
 which the parties agree.
 [Sections 175.171-175.200 reserved for expansion]
 SUBCHAPTER E. FINANCIAL PROVISIONS
 Sec. 175.201.  PURCHASE OF ADDITIONAL INSURED PROVISIONS.
 An authority may purchase an additional insured provision to any
 liability insurance contract.
 Sec. 175.202.  FISCAL YEAR. Unless the board changes the
 fiscal year, the fiscal year of an authority ends September 30.
 Sec. 175.203.  ANNUAL BUDGET. (a) Before beginning the
 operation of higher-speed rail facilities, the board shall adopt an
 annual operating budget specifying the authority's anticipated
 revenues and expenses for the remainder of the fiscal year. The
 board shall adopt an operating budget for each succeeding fiscal
 year.
 (b)  The board shall hold a public hearing before adopting a
 budget other than the initial budget. Notice of each hearing must
 be published at least seven days before the date of the hearing in a
 newspaper of general circulation in each county in the applicable
 border region.
 (c)  A budget may be amended at any time if notice of the
 proposed amendment is given in the notice of the meeting.
 (d) An expenditure that is not budgeted may not be made.
 Sec. 175.204.  RETIREMENT BENEFITS. An authority is
 eligible to participate in the Texas County and District Retirement
 System.
 Sec. 175.205.  DEPOSITORY. (a) The board by resolution
 shall name one or more banks for the deposit of authority funds.
 (b)  Authority funds are public funds and may be invested in
 securities permitted by Chapter 2256, Government Code.
 (c)  To the extent funds of an authority are not insured by
 the Federal Deposit Insurance Corporation or its successor, they
 shall be collateralized in the manner provided for county funds.
 Sec. 175.206.  AGREEMENTS RELATED TO FOREIGN AND DOMESTIC
 CURRENCY. (a) To provide tax benefits to another party that are
 available with respect to property under the laws of a foreign
 country or to encourage private investment with a transportation
 authority in the United States, and notwithstanding any other
 provision of this chapter, an authority may enter into and execute,
 as it considers appropriate, contracts, agreements, notes,
 security agreements, conveyances, bills of sale, deeds, leases as
 lessee or lessor, and currency hedges, swap transactions, or
 agreements relating to foreign and domestic currency.
 (b)  The agreements or instruments may have the terms,
 maturities, duration, provisions as to governing law, indemnities,
 and other provisions that are approved by the board.
 (c)  In connection with any transaction authorized by this
 section, the authority shall deposit in trust, escrow, or similar
 arrangement cash or lawful investments or securities, or shall
 enter into one or more payment agreements, financial guarantees, or
 insurance contracts that, by their terms, including interest to be
 earned on any cash or securities, are sufficient in amount to pay
 when due all amounts required to be paid by the authority as rent
 over the full term of the transaction plus any optional purchase
 price due under the transaction. A counterparty to a payment
 agreement, financial guarantee, or insurance contract under this
 subsection must have either a corporate credit or debt rating in any
 form, a claims-paying ability, or a rating for financial strength
 of "AA" or better by Moody's Investors Service, Inc., or by Standard &
 Poor's Corporation or "A-" or better by BEST's rating system.
 (d)  A certification in advance by an independent financial
 expert, banker, or certified public accountant, who is not an
 employee of the authority, certifying compliance with this
 requirement constitutes conclusive evidence of compliance.
 Property sold, acquired, or otherwise transferred under this
 section is considered for all purposes to be property owned and held
 by the authority and used for public purposes.
 [Sections 175.207-175.300 reserved for expansion]
 SUBCHAPTER F. BONDS
 Sec. 175.301.  REVENUE BONDS. An authority may issue
 revenue bonds and notes in amounts the board considers necessary or
 appropriate for the acquisition, purchase, construction,
 reconstruction, repair, equipping, improvement, or extension of
 the authority's higher-speed rail facilities.
 Sec. 175.302.  SECURITY FOR PAYMENT OF BONDS. (a) To secure
 the payment of a bond or note, an authority may:
 (1)  encumber and pledge all or any part of the revenues
 of its higher-speed rail facilities;
 (2)  mortgage and encumber all or part of the property
 of the higher-speed rail facilities and any thing pertaining to
 them that is acquired or to be acquired; and
 (3)  prescribe the terms and provisions of the bond or
 note in any manner not inconsistent with this chapter.
 (b)  Unless prohibited by the resolution or indenture
 relating to outstanding bonds or notes, an authority may encumber
 separately any item of property.
 Sec. 175.303.  BONDS AND NOTES AS AUTHORIZED INVESTMENTS AND
 SECURITY FOR DEPOSITS OF PUBLIC FUNDS. (a) Bonds and notes are
 legal and authorized investments for:
 (1) a bank;
 (2) a trust company;
 (3) a savings and loan association; and
 (4) an insurance company.
 (b) The bonds and notes are:
 (1)  eligible to secure the deposit of public funds of
 this state or a municipality, county, school district, or other
 political corporation or subdivision of this state; and
 (2)  lawful and sufficient security for the deposits to
 the extent of the principal amount or market value of the bonds and
 notes, whichever is less.
 Sec. 175.304.  AWARDING CONSTRUCTION OR PURCHASE CONTRACTS.
 (a) A contract in the amount of more than $15,000 for the
 construction of improvements or the purchase of material,
 machinery, equipment, supplies, or any other property other than
 real property may be let only through competitive bidding after
 notice is published, at least 15 days before the date set for
 receiving bids, in a newspaper of general circulation in each
 county in the applicable border region.
 (b)  The board may adopt rules governing the taking of bids
 and the awarding of contracts.
 (c) This section does not apply to:
 (1) personal or professional services;
 (2)  the acquisition of an existing rail transportation
 system; or
 (3)  a contract with a common carrier to construct
 lines or to operate higher-speed rail service on lines wholly or
 partly owned by the carrier.
 [Sections 175.305-175.350 reserved for expansion]
 SUBCHAPTER G. TAXES
 Sec. 175.351.  TAX EXEMPTION. Authority property, material
 purchases, revenues, and income and the interest on a bond or note
 issued by an authority are exempt from all taxes imposed by this
 state or a political subdivision of this state.
 Sec. 175.352.  SALES AND USE TAX IMPOSED. A sales and use
 tax is imposed on items sold on authority property.
 Sec. 175.353.  TAX RATE. The sales and use tax imposed under
 Section 175.352 shall be imposed at the rate of the highest
 combination of local sales and use taxes imposed at the time of the
 authority's creation in any local governmental jurisdiction in the
 applicable border region.
 Sec. 175.354.  ABOLITION OF OTHER TAXES. All other local
 sales and use taxes that would otherwise be imposed on authority
 property are abolished by the imposition of the tax under Section
 175.352.
 Sec. 175.355. DUTY OF COMPTROLLER. The comptroller shall:
 (1)  administer, collect, and enforce the tax imposed
 under Section 175.352; and
 (2)  remit to the authority the local sales and use tax
 collected on the authority's property.
 Sec. 175.356.  APPLICABILITY OF TAX CODE. Chapter 321, Tax
 Code, governs the computation, administration, governance, and use
 of the tax except as inconsistent with this chapter.
 Sec. 175.357.  NOTICE TO COMPTROLLER. (a) An authority
 shall notify the comptroller in writing by registered or certified
 mail of the authority's creation and of its intent to impose the
 sales and use tax under Section 175.352.
 (b)  The authority shall provide to the comptroller all
 information required to implement the tax, including:
 (1)  an adequate map showing the property boundaries of
 the authority; and
 (2)  a certified copy of the resolution of the
 authority board adopting the tax.
 (c)  Not later than the 30th day after the date the
 comptroller receives the notice, map, and other information, the
 comptroller shall inform the authority of whether the comptroller
 is prepared to administer the tax.
 Sec. 175.358.  NOTICE TO LOCAL GOVERNMENTS. At the same time
 an authority notifies the comptroller under Section 175.357, the
 authority shall:
 (1)  notify each affected local governmental unit of
 the authority's creation; and
 (2)  provide each with an adequate map showing the
 property boundaries of the authority.
 Sec. 175.359.  ACQUISITION OF ADDITIONAL TERRITORY SUBJECT
 TO TAX. (a) Not later than the 30th day after the date an authority
 adds territory to the authority, the authority shall notify the
 comptroller and each affected local governmental unit of the
 addition.
 (b) The authority must include with each notification:
 (1)  an adequate map showing the new boundaries of the
 authority; and
 (2) the date the additional territory was added.
 (c)  Not later than the 30th day after the date the
 comptroller receives the notice under this section, the comptroller
 shall inform the authority of whether the comptroller is prepared
 to administer the tax imposed under Section 175.352 in the
 additional territory.
 Sec. 175.360.  EFFECTIVE DATE OF TAX. A tax imposed under
 Section 175.352 or the abolition of a tax under Section 175.354
 takes effect on the first day of the first complete calendar quarter
 that occurs after the expiration of the first complete calendar
 quarter that occurs after the date the comptroller receives a
 notice of the action as required by this subchapter.
 ARTICLE 10. ELECTRONIC SIGNS
 SECTION 10.01. Chapter 544, Transportation Code, is amended
 by adding Section 544.013 to read as follows:
 Sec. 544.013.  CHANGEABLE MESSAGE SIGN SYSTEM. (a)  In this
 section, "changeable message sign" means a sign that conforms to
 the manual and specifications adopted under Section 544.001. The
 term includes a dynamic message sign.
 (b)  The Texas Department of Transportation shall actively
 manage a system of changeable message signs located on highways
 under the jurisdiction of that department to mitigate traffic
 congestion by providing current information to the traveling
 public, including information about:
 (1) traffic incidents;
 (2)  weather conditions, including severe weather
 advisories;
 (3)  an abducted child for whom the statewide alert
 system authorized by Subchapter L, Chapter 411, Government Code,
 has been activated;
 (4)  a missing senior citizen for whom a statewide
 silver alert authorized by Subchapter M, Chapter 411, Government
 Code, has been activated;
 (5)  the availability of gas, food, lodging, or
 pharmacy services or other relevant information during an
 evacuation or after an order declaring a state of disaster under
 Chapter 418, Government Code;
 (6) road construction; and
 (7) alternative routes.
 (c)  Not later than June 1, 2010, the department shall
 explore implementing a system of changeable message signs along
 designated evacuation routes. This subsection expires September 1,
 2011.
 ARTICLE 11. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY
 SECTION 11.01. Section 1(3), Article 4413(37), Revised
 Statutes, is amended to read as follows:
 (3) "Office" ["Department"] means the office of the
 governor [Texas Department of Transportation].
 SECTION 11.02. Section 2, Article 4413(37), Revised
 Statutes, is amended to read as follows:
 Sec. 2. ESTABLISHMENT OF AUTHORITY. The Automobile Burglary
 and Theft Prevention Authority is established in the office of the
 governor [Texas Department of Transportation]. The authority is
 not an advisory body to the governor [Texas Department of
 Transportation].
 SECTION 11.03. Sections 3(h) and (l), Article 4413(37),
 Revised Statutes, are amended to read as follows:
 (h) If a person [the director] has knowledge that a
 potential ground for removal exists, the person [director] shall
 notify the presiding officer of the authority of the potential
 ground. The presiding officer shall then notify the governor and
 the attorney general that a potential ground for removal exists. If
 the potential ground for removal involves the presiding officer,
 the person [director] shall notify the next highest officer of the
 authority, who shall notify the governor and the attorney general
 that a potential ground for removal exists.
 (l) The governor's [director or the director's] designee
 shall provide to members of the authority, as often as necessary,
 information regarding their qualifications for office under this
 article and their responsibilities under applicable laws relating
 to standards of conduct for state officers.
 SECTION 11.04. Section 5(d), Article 4413(37), Revised
 Statutes, is amended to read as follows:
 (d) The training program required by Subsection (c) must
 provide information to the person regarding:
 (1) the enabling legislation that created the
 authority and its policymaking body to which the member is
 appointed to serve;
 (2) the programs operated by the authority;
 (3) the role and functions of the authority;
 (4) the rules of the authority [and the department];
 (5) the current budget for the authority;
 (6) the results of the most recent formal audit of the
 authority;
 (7) the requirements of the:
 (A) open meetings law, Chapter 551, Government
 Code;
 (B) open records law, Chapter 552, Government
 Code; and
 (C) administrative procedure law, Chapter 2001,
 Government Code;
 (8) the requirements of the conflict-of-interest laws
 and other laws relating to public officials; and
 (9) any applicable ethics policies adopted by the
 office [department] or the Texas Ethics Commission.
 SECTION 11.05. Sections 6(c), (d), (e), (f), and (g),
 Article 4413(37), Revised Statutes, are amended to read as follows:
 (c) The authority may use only staff of the office
 [department] and may delegate authority to the staff as needed.
 (d) Not later than April 1 of each year, the authority shall
 report on its activities to the governor, the lieutenant governor,
 and the speaker of the house of representatives.
 (e) The authority may be provided various services only by
 or through the office [department] as needed to carry out its
 purposes, powers, and duties. These services may include, but are
 not limited to, legal services not provided by the attorney
 general, fiscal services, administrative services, and personnel
 services. Except as provided by this section, the authority may
 enter into contracts in its own name and on its own behalf with
 recipients of grants for purposes of this article.
 (f) The office [department] shall provide personnel and
 services to the authority as agreed by the authority and the office
 [department].
 (g) The authority shall, in coordination with the office
 [department], develop and implement policies that clearly separate
 the policymaking responsibilities of the authority and the
 management responsibilities of the office [department].
 SECTION 11.06. Section 8(a), Article 4413(37), Revised
 Statutes, as amended by Chapters 308 (H.B. 1887) and 927 (H.B.
 3225), Acts of the 80th Legislature, Regular Session, 2007, is
 reenacted and amended to read as follows:
 (a) Money appropriated to the office [department] for
 authority purposes shall be used by the authority to pay the office
 [department] for administrative costs and to achieve the purposes
 of this article, including:
 (1) establishing and funding the motor vehicle
 registration program required by Section 9 of this article;
 (2) providing financial support to law enforcement
 agencies for economic motor vehicle theft enforcement teams;
 (3) providing financial support to law enforcement
 agencies, local prosecutors, judicial agencies, and neighborhood,
 community, business, and nonprofit organizations for programs
 designed to reduce the incidence of economic motor vehicle theft;
 (4) conducting educational programs designed to
 inform motor vehicle owners of methods of preventing motor vehicle
 burglary or theft;
 (5) providing equipment, for experimental purposes,
 to assist motor vehicle owners in preventing motor vehicle burglary
 or theft; and
 (6) establishing a uniform program to prevent stolen
 motor vehicles from entering Mexico.
 SECTION 11.07. Section 8(c), Article 4413(37), Revised
 Statutes, is amended to read as follows:
 (c) The cost of personnel and services provided to the
 authority by the office [department] and by the attorney general
 may be paid only from appropriations made for authority purposes.
 Appropriations made for authority purposes may not be used for any
 other purpose.
 SECTION 11.08. Section 9(e), Article 4413(37), Revised
 Statutes, is amended to read as follows:
 (e) The Department of Public Safety [department] shall
 issue to the owner of a motor vehicle registered under this section
 a decal or other appropriate identifying marker to be affixed to the
 motor vehicle to indicate that the motor vehicle is registered with
 the program.
 SECTION 11.09. Section 1(4), Article 4413(37), Revised
 Statutes, is repealed.
 SECTION 11.10. (a) In connection with the establishment by
 this Act of the Automobile Burglary and Theft Prevention Authority
 in the office of the governor and with the transfer by this Act of
 the duty to provide personnel and services to the Automobile
 Burglary and Theft Prevention Authority from the Texas Department
 of Transportation to the office of the governor, the personnel,
 furniture, computers, other property and equipment, files, and
 related materials used by the Automobile Burglary and Theft
 Prevention Authority are transferred to the office of the governor.
 (b) The unobligated and unexpended balance of any
 appropriations made to the Texas Department of Transportation in
 connection with or relating to the Automobile Burglary and Theft
 Prevention Authority for the state fiscal biennium ending August
 31, 2009, is transferred and reappropriated to the office of the
 governor for the purpose of allowing the authority to continue to
 exercise its powers, duties, and obligations under the auspices of
 that office.
 ARTICLE 12. STATE FINANCING OF PUBLIC TRANSPORTATION
 SECTION 12.01. Subchapter A, Chapter 456, Transportation
 Code, is amended by adding Section 456.009 to read as follows:
 Sec. 456.009.  ALLOCATION OF FUNDS. (a) The commission
 shall adopt rules to allocate funds to designated recipients under
 this chapter.
 (b)  Subject to Subsection (c), of the total amount of money
 allocated under this chapter, the commission may not distribute:
 (1)  less than 90 percent of the total amount allocated
 under the formula program provided by Subchapter B; and
 (2)  more than 10 percent of the total amount allocated
 under the discretionary program provided by Subchapter C.
 (c)  The rules established by the commission under this
 section must include a provision ensuring that no recipient of
 state funding under Subchapter B or C receives an amount of funding
 allocated under those subchapters that is less than the total
 amount of state funding received under those subchapters in the
 state fiscal year beginning September 1, 2004.
 ARTICLE 13. MEMORANDA OF UNDERSTANDING
 SECTION 13.01. (a) The board of the Texas Department of
 Motor Vehicles and the Texas Transportation Commission by rule
 shall adopt or revise a joint memorandum of understanding to
 coordinate the Texas Department of Motor Vehicles' and the Texas
 Department of Transportation's information systems to allow for the
 sharing of information so that each department may effectively and
 efficiently perform the functions and duties assigned to it.
 (b) The Texas Department of Motor Vehicles and the Texas
 Department of Transportation shall implement the joint memorandum
 of understanding using existing personnel and resources.
 (c) Otherwise confidential information shared under the
 memorandum of understanding remains subject to the same
 confidentiality requirements and legal restrictions on access to
 the information that are imposed by law on the department that
 originally obtained or collected the information.
 (d) Information may be shared under the memorandum of
 understanding without the consent of the person who is the subject
 of the information.
 SECTION 13.02. In addition to the memorandum of
 understanding required by Section 13.01 of this article, the board
 of the Texas Department of Motor Vehicles and the Texas
 Transportation Commission by rule may adopt or revise one or more
 other joint memoranda of understanding as considered necessary or
 appropriate to effectuate the transfer of the powers and duties of
 the Texas Department of Transportation to the Texas Department of
 Motor Vehicles under this Act.
 ARTICLE 14. EFFECTIVE DATE
 SECTION 14.01. This Act takes effect September 1, 2009.