Texas 2011 82nd Regular

Texas Senate Bill SB1420 Enrolled / Bill

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                    S.B. No. 1420


 AN ACT
 relating to the continuation and functions of the Texas Department
 of Transportation; providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  (a)  Section 12.0011, Parks and Wildlife Code,
 is amended by adding Subsection (b-1) to read as follows:
 (b-1)  Recommendations and information submitted by the
 department under Subsection (b) in response to a request for
 comments from the Texas Department of Transportation must be
 submitted not later than the 45th day after the date the department
 receives the request.
 (b)  Subsection (b-1), Section 12.0011, Parks and Wildlife
 Code, as added by this section, applies only to a request for
 comments from the Texas Department of Transportation received on or
 after the effective date of this Act.
 SECTION 2.  Section 201.001, Transportation Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  In this chapter, "local transportation entity" means an
 entity that participates in the transportation planning process,
 including:
 (1)  a regional tollway authority under Chapter 366;
 (2)  a rapid transportation authority under Chapter
 451;
 (3)  a regional transportation authority under Chapter
 452;
 (4)  a rural transit district under Chapter 458;
 (5)  a coordinated county transportation authority
 under Chapter 460; or
 (6)  a metropolitan planning organization under
 Subchapter D, Chapter 472.
 SECTION 3.  (a)  Section 201.051, Transportation Code, is
 amended by amending Subsections (b), (d), (f), (g), (h), and (j) and
 adding Subsection (b-1) to read as follows:
 (b)  The members shall be appointed to reflect the diverse
 geographic regions and population groups of this state.  One member
 must reside in a rural area and be a registered voter of a county
 with a population of less than 150,000.
 (b-1)  A member of the commission may not accept a
 contribution to a campaign for election to an elected office.  If a
 commissioner accepts a campaign contribution, the person is
 considered to have resigned from the office and the office
 immediately becomes vacant. The vacancy shall be filled in the
 manner provided by law.
 (d)  A [Except as provided by Subsection (e), a] person is
 not eligible to serve [for appointment] as a member of the
 commission if the person or the person's spouse:
 (1)  is employed by or participates in the management
 of a business entity or other organization that is regulated by or
 receives funds from the department;
 (2)  directly or indirectly owns or controls more than
 10 percent interest in a business entity or other organization that
 is regulated by or receives funds from the department;
 (3)  uses or receives a substantial amount of tangible
 goods, services, or funds from the department, other than
 compensation or reimbursement authorized by law for commission
 membership, attendance, or expenses; or
 (4)  is registered, certified, or licensed by the
 department.
 (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 to serve 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 to
 serve 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 to [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.
 (b)  Subsection (b), Section 201.051, Transportation Code,
 as amended by this section, does not affect the right of a
 commissioner serving on the effective date of this Act to complete
 the commissioner's term. The requirement of Subsection (b),
 Section 201.051, Transportation Code, as amended by this section,
 applies at the time a vacancy occurs in the position held by the
 person serving as the rural designee on the effective date of this
 Act.
 SECTION 4.  Subsection (a), Section 201.053, 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 5.  Subsection (a), Section 201.057, 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 6.  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 7.  Subchapter C, Chapter 201, Transportation Code,
 is amended by adding Section 201.1075 to read as follows:
 Sec. 201.1075.  CHIEF FINANCIAL OFFICER.  (a)  The chief
 financial officer shall ensure that the department's financial
 activities are conducted in a transparent and reliable manner.
 (b)  The chief financial officer shall certify each month
 that any state highway construction and maintenance contracts to be
 awarded by the department during that month will not create state
 liability that exceeds the department's most recent cash flow
 forecast.
 SECTION 8.  Subchapter C, Chapter 201, Transportation Code,
 is amended by adding Sections 201.118 and 201.119 to read as
 follows:
 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 department shall:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  provide training as needed to implement the
 procedures for negotiated rulemaking or alternative dispute
 resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures.
 Sec. 201.119.  LEGISLATIVE APPROPRIATIONS REQUEST.
 (a)  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 date the department submits the
 legislative appropriations request to the Legislative Budget
 Board.
 (b)  The commission may adopt the legislative appropriations
 request in the meeting described by Subsection (a) or in a
 subsequent open meeting.
 SECTION 9.  Subchapter Y, Chapter 201, Transportation Code,
 is amended by adding Section 201.2002 to read as follows:
 Sec. 201.2002.  EDMUND P. KUEMPEL REST AREAS. (a)  The
 eastbound and westbound rest areas located on Interstate Highway 10
 in Guadalupe County are designated as the Edmund P. Kuempel Rest
 Areas.
 (b)  The department shall design and construct markers at
 each rest area described by Subsection (a) indicating the
 designation of those rest areas as the Edmund P. Kuempel Rest Areas
 and any other appropriate information.
 (c)  The department shall erect markers at appropriate
 locations at the rest areas.
 (d)  Notwithstanding Subsections (b) and (c), the department
 is not required to design, construct, or erect a marker under this
 section unless a grant or donation of private funds is made to the
 department to cover the cost of the design, construction, and
 erection of the marker.
 (e)  Money received under Subsection (d) shall be deposited
 to the credit of the state highway fund.
 SECTION 10.  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, 2015 [2011].
 SECTION 11.  Subchapter D, Chapter 201, Transportation Code,
 is amended by adding Section 201.2041 to read as follows:
 Sec. 201.2041.  SUBMISSION OF FINANCIAL AUDIT TO SUNSET
 COMMISSION.  (a)  The department shall submit with its agency
 report under Section 325.007, Government Code, a complete and
 detailed financial audit conducted by an independent certified
 public accountant.
 (b)  Subsection (a) does not apply if the department is
 subject to sunset review during the previous two-year period.
 SECTION 12.  Subchapter D, Chapter 201, Transportation Code,
 is amended by adding Sections 201.210 and 201.211 to read as
 follows:
 Sec. 201.210.  LEGISLATIVE LOBBYING.  (a)  In addition to
 Section 556.006, Government Code, 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)  Violation of Subsection (a) is grounds for dismissal of
 an employee.
 (c)  This section does not prohibit 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 or
 programs.
 (d)  The department may not spend from funds appropriated to
 the department any money for the purpose of selecting, hiring, or
 retaining a person required to register under Chapter 305,
 Government Code, or the Lobbying Disclosure Act of 1995 (2 U.S.C.
 Section 1601 et seq.), unless that expenditure is allowed under
 state law.
 Sec. 201.211.  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
 hotline that enables a person to call the hotline number,
 anonymously or not anonymously, to report alleged fraud, waste, or
 abuse or an alleged violation of the ethics policy adopted under
 Section 572.051(c), Government Code.
 SECTION 13.  (a)  Subsections (a) and (b), Section 201.401,
 Transportation Code, are amended to read as follows:
 (a)  A person may not be an employee of the department who is
 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.), [exempt from
 the state's position classification plan or compensated at or above
 the amount prescribed by the General Appropriations Act for step 1,
 salary group 17, of the position classification salary schedule] if
 the person is:
 (1)  an officer, employee, or paid consultant of a
 Texas trade association[:
 [(A)]  in the field of road construction or
 maintenance or outdoor advertising; or
 [(B)  of automobile dealers; or]
 (2)  the spouse of an officer, manager, or paid
 consultant described by Subdivision (1).
 (b)  A person may not act as 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 a profession related to the operation
 of the department.  A person who acts as general counsel to the
 department must be licensed as an attorney in this state.
 (b)  The changes in law made by this section to Section
 201.401, Transportation Code, in the qualifications of the general
 counsel of the Texas Department of Transportation do not affect the
 eligibility of a person serving in that position immediately before
 the effective date of this Act to continue to carry out the
 position's functions for the remainder of the person's employment
 as general counsel.  The changes in law apply only to a general
 counsel hired on or after the effective date of this Act.
 SECTION 14.  Section 201.404, Transportation Code, is
 amended by adding Subsections (b-1) and (b-2) to read as follows:
 (b-1)  If an annual performance evaluation indicates
 unsatisfactory performance by an employee employed in a position at
 or above the level of district engineer or division or office
 director, the commission shall consider whether the employee should
 be terminated. The annual performance evaluation of a position
 described by this subsection must include an evaluation of an
 employee's:
 (1)  professionalism;
 (2)  diligence; and
 (3)  responsiveness to directives and requests from the
 commission and the legislature.
 (b-2)  If an annual performance evaluation indicates
 unsatisfactory performance by an employee employed in a position
 that is below the level of district engineer, the department
 shall consider whether the employee should be terminated.  The
 department shall provide a report to the commission regarding
 employees whose performances were unsatisfactory but who were
 not terminated.
 SECTION 15.  (a)  Chapter 201, Transportation Code, is
 amended by adding Subchapter F-1 to read as follows:
 SUBCHAPTER F-1.  COMPLIANCE PROGRAM
 Sec. 201.451.  ESTABLISHMENT AND PURPOSE. The commission
 shall establish a compliance program, which must include a
 compliance office to oversee the program.  The compliance office is
 responsible for:
 (1)  acting to prevent and detect serious breaches of
 departmental policy, fraud, waste, and abuse of office, including
 any acts of criminal conduct within the department;
 (2)  independently and objectively reviewing,
 investigating, delegating, and overseeing the investigation of:
 (A)  conduct described by Subdivision (1);
 (B)  criminal activity in the department;
 (C)  allegations of wrongdoing by department
 employees;
 (D)  crimes committed on department property; and
 (E)  serious breaches of department policy;
 (3)  overseeing the operation of the telephone hotline
 established under Section 201.211;
 (4)  ensuring that members of the commission and
 department employees receive appropriate ethics training; and
 (5)  performing other duties assigned to the office by
 the commission.
 Sec. 201.452.  INVESTIGATION OVERSIGHT. (a)  The
 compliance office has primary jurisdiction for oversight and
 coordination of all investigations occurring on department
 property or involving department employees.
 (b)  The compliance office shall coordinate and provide
 oversight for an investigation under this subchapter, but the
 compliance office is not required to conduct the investigation.
 (c)  The compliance office shall continually monitor an
 investigation conducted within the department, and shall report to
 the commission on the status of pending investigations.
 Sec. 201.453.  INITIATION OF INVESTIGATIONS. The compliance
 office may only initiate an investigation based on:
 (1)  authorization from the commission;
 (2)  approval of the director of the compliance office;
 (3)  approval of the executive director or deputy
 executive director of the department; or
 (4)  commission rules.
 Sec. 201.454.  REPORTS.  (a)  The compliance office shall
 report directly to the commission regarding performance of and
 activities related to investigations and provide the director with
 information regarding investigations as appropriate.
 (b)  The director of the compliance office shall present to
 the commission at each regularly scheduled commission meeting and
 at other appropriate times:
 (1)  reports of investigations; and
 (2)  a summary of information relating to
 investigations conducted under this subchapter that includes
 analysis of the number, type, and outcome of investigations, trends
 in investigations, and recommendations to avoid future complaints.
 Sec. 201.455.  COOPERATION WITH LAW ENFORCEMENT OFFICIALS
 AND OTHER ENTITIES. (a)  The director of the compliance office
 shall provide information and evidence relating to criminal acts to
 the state auditor's office and appropriate law enforcement
 officials.
 (b)  The director of the compliance office shall refer
 matters for further civil, criminal, and administrative action to
 appropriate administrative and prosecutorial agencies, including
 the attorney general.
 Sec. 201.456.  AUTHORITY OF STATE AUDITOR.  This subchapter
 or other law related to the operation of the department's
 compliance program does not preempt the authority of the state
 auditor to conduct an audit or investigation under Chapter 321,
 Government Code, or other law.
 (b)  Not later than January 1, 2013, the Texas Department of
 Transportation shall submit a report to the legislature on the
 effectiveness of the compliance program described by Subchapter
 F-1, Chapter 201, Transportation Code, as added by this Act, and any
 recommended changes in law to increase the effectiveness of the
 compliance program.
 SECTION 16.  Section 201.601, Transportation Code, is
 amended to read as follows:
 Sec. 201.601.  STATEWIDE TRANSPORTATION PLAN.  (a)  The
 department shall develop a statewide transportation plan covering a
 period of 24 years that contains all modes of transportation,
 including:
 (1)  highways and turnpikes;
 (2)  aviation;
 (3)  mass transportation;
 (4)  railroads and high-speed railroads; and
 (5)  water traffic.
 (a-1)  The plan must:
 (1)  contain specific, long-term transportation goals
 for the state and measurable targets for each goal;
 (2)  identify priority corridors, projects, or areas of
 the state that are of particular concern to the department in
 meeting the goals established under Subdivision (1); and
 (3)  contain a participation plan specifying methods
 for obtaining formal input on the goals and priorities identified
 under this subsection from:
 (A)  other state agencies;
 (B)  political subdivisions;
 (C)  local transportation entities; and
 (D)  the general public.
 (b)  [In developing the plan, the department shall seek
 opinions and assistance from other state agencies and political
 subdivisions that have responsibility for the modes of
 transportation listed by Subsection (a).] As appropriate, the
 department and the entities listed in Subsection (a-1)(3) [such an
 agency or political subdivision] shall enter into a memorandum of
 understanding relating to the planning of transportation services.
 (c)  The plan must include a component that is not
 financially constrained and identifies transportation improvements
 designed to relieve congestion. In developing this component of
 the plan, the department shall seek opinions and assistance from
 officials who have local responsibility for modes of transportation
 listed in Subsection (a).
 (d)  [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 goals and measurable targets
 established under Subsection (a-1)(1) [performance measures] in
 selecting transportation projects [improvements].
 (e)  The department annually shall provide to the lieutenant
 governor, the speaker of the house of representatives, and the
 chair of the standing committee of each house of the legislature
 with primary jurisdiction over transportation issues an analysis of
 the department's progress in attaining the goals under Subsection
 (a-1)(1).  The department shall make the information under this
 subsection available on its Internet website.
 (f)  The department shall update the plan every four years or
 more frequently as necessary.
 SECTION 17.  Subchapter H, Chapter 201, Transportation Code,
 is amended by adding Section 201.6015 to read as follows:
 Sec. 201.6015.  INTEGRATION OF PLANS AND POLICY EFFORTS. In
 developing each of its transportation plans and policy efforts, the
 department must clearly reference the statewide transportation
 plan under Section 201.601 and specify how the plan or policy effort
 supports or otherwise relates to the specific goals under that
 section.
 SECTION 18.  (a)  Section 201.607, Transportation Code, is
 amended by amending Subsection (a) and adding Subsection (c) to
 read as follows:
 (a)  Not later than January 1, 1997, and every fifth year
 after that date, the department and each state agency that is
 responsible for the protection of the natural environment or for
 the preservation of historical or archeological resources shall
 examine and revise their memorandum of understanding that:
 (1)  describes the responsibilities of each agency
 entering into the memorandum relating to the review of the
 potential environmental, historical, or archeological effect of a
 highway project;
 (2)  specifies the responsibilities of each agency
 entering into the memorandum relating to the review of a highway
 project;
 (3)  specifies the types of information the department
 must provide to the reviewing agency and the period during which the
 department must provide the information;
 (4)  specifies the period during which the reviewing
 agency must review the highway project and provide comments to the
 department, as negotiated by the department and the agency but
 which may not exceed 45 days after the date the agency receives a
 request for comments from the department; [and]
 (5)  specifies that comments submitted to the
 department later than the period specified under Subdivision (4)
 will be considered by the department to the extent possible; and
 (6)  includes any other agreement necessary for the
 effective coordination of the review of the environmental,
 historical, or archeological effect of a highway project.
 (c)  The department by rule shall establish procedures
 concerning coordination with agencies in carrying out
 responsibilities under agreements under this section.
 (b)  Subsection (a), Section 201.607, Transportation Code,
 as amended by this section, applies only to a request for comments
 from the Texas Department of Transportation received by a state
 agency on or after the effective date of this Act.  As necessary,
 the Texas Department of Transportation and each affected state
 agency shall promptly revise the memorandum of understanding
 required by Section 201.607, Transportation Code, to implement the
 change made by this section to Subsection (a), Section 201.607,
 Transportation Code.
 SECTION 19.  Subchapter H, Chapter 201, Transportation Code,
 is amended by adding Section 201.620 to read as follows:
 Sec. 201.620.  COORDINATION WITH METROPOLITAN PLANNING
 ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The
 department shall collaborate with metropolitan planning
 organizations 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 in the statewide
 transportation plan under Section 201.601.
 SECTION 20.  Subchapter H, Chapter 201, Transportation Code,
 is amended by adding Section 201.622 to read as follows:
 Sec. 201.622.  WILDFIRE EMERGENCY EVACUATION ROUTE.
 (a)  Notwithstanding Section 418.018, Government Code, in a county
 with a population of less than 75,000 and with a verifiable history
 of wildfire, the department may designate an emergency evacuation
 route for use in the event of a wildfire emergency.  The department
 may establish criteria to determine which areas of a county are
 subject to a potential wildfire emergency.
 (b)  The department may assist in the improvement of a
 designated wildfire emergency evacuation route.
 (c)  Criteria for determining a wildfire emergency
 evacuation route must provide for evacuation of commercial
 establishments such as motels, hotels, and other businesses with
 overnight accommodations.
 (d)  A wildfire emergency evacuation route designated under
 Subsection (a) may include federal or state highways or county
 roads.
 SECTION 21.  (a)  Chapter 201, Transportation Code, is
 amended by adding Subchapter I-1 to read as follows:
 SUBCHAPTER I-1.  ENVIRONMENTAL REVIEW PROCESS
 Sec. 201.751.  DEFINITIONS. In this subchapter:
 (1)  "Day" means a calendar day.
 (2)  "Federal Highway Administration" means the United
 States Department of Transportation Federal Highway
 Administration.
 (3)  "Highway project" means a highway or related
 improvement that is:
 (A)  part of the state highway system; or
 (B)  not part of the state highway system but
 funded wholly or partly by federal money.
 (4)  "Local government sponsor" means a political
 subdivision of the state that:
 (A)  elects to participate in the planning,
 development, design, funding, or financing of a highway project;
 and
 (B)  is a municipality or a county, a group of
 adjoining counties, a county acting under Chapter 284, a regional
 tollway authority operating under Chapter 366, a regional mobility
 authority operating under Chapter 370, a local government
 corporation, or a transportation corporation created under Chapter
 431.
 Sec. 201.752.  STANDARDS. (a)  The commission by rule shall
 establish standards for processing an environmental review
 document for a highway project. The standards must increase
 efficiency, minimize delays, and encourage collaboration and
 cooperation by the department with a local government sponsor, with
 a goal of prompt approval of legally sufficient documents.
 (b)  The standards apply regardless of whether the
 environmental review document is prepared by the department or a
 local government sponsor. The standards apply to work performed by
 the sponsor and to the department's review process and
 environmental decision.
 (c)  The standards must address, for each type of
 environmental review document:
 (1)  the issues and subject matter to be included in the
 project scope prepared under Section 201.754;
 (2)  the required content of a draft environmental
 review document;
 (3)  the process to be followed in considering each
 type of environmental review document; and
 (4)  review deadlines, including the deadlines in
 Section 201.759.
 (d)  The standards must include a process for resolving
 disputes arising under this subchapter, provided that the dispute
 resolution process must be concluded not later than the 60th day
 after the date either party requests dispute resolution.
 (e)  For highway projects described in Section 201.753(a),
 the standards may provide a process and criteria for the
 prioritization of environmental review documents in the event the
 department makes a finding that it lacks adequate resources to
 timely process all documents it receives.  Standards established
 pursuant to this subsection must provide for notification to a
 local government sponsor if processing of an environmental review
 document is to be delayed due to prioritization, and must ensure
 that the environmental review document for each highway project
 will be completed no later than one year prior to the date planned
 for publishing notice to let the construction contract for the
 project, as indicated in a document identifying the project under
 Section 201.753(a)(1) or a commission order under Section
 201.753(a)(2).
 Sec. 201.753.  ENVIRONMENTAL REVIEW LIMITED TO CERTAIN
 PROJECTS. (a)  A local government sponsor or the department may
 prepare an environmental review document for a highway project only
 if the highway project is:
 (1)  identified in the financially constrained portion
 of the approved state transportation improvement program or the
 financially constrained portion of the approved unified
 transportation program; or
 (2)  identified by the commission as being eligible for
 participation under this subchapter.
 (b)  Notwithstanding Subsection (a), a local government
 sponsor may prepare an environmental review document for a highway
 project that is not identified by the commission or in a program
 described by Subsection (a) if the sponsor submits with its notice
 under Section 201.755 a fee in an amount established by commission
 rule, but not to exceed the actual cost of reviewing the
 environmental review document.
 (c)  A fee received by the department under Subsection (b)
 must be deposited in the state highway fund and used to pay costs
 incurred under this subchapter.
 Sec. 201.754.  SCOPE OF PROJECT. If an environmental review
 document is prepared by a local government sponsor, the local
 government sponsor must prepare a detailed scope of the project in
 collaboration with the department before the department may process
 the environmental review document.
 Sec. 201.755.  NOTICE TO DEPARTMENT. (a)  A local
 government sponsor may submit notice to the department proposing
 that the local government sponsor prepare the environmental review
 document for a highway project.
 (b)  The notice must include:
 (1)  the project scope prepared under Section 201.754;
 and
 (2)  a request for classification of the project.
 Sec. 201.756.  LOCAL GOVERNMENT SPONSOR RESPONSIBILITIES. A
 local government sponsor that submits notice under Section 201.755
 is responsible for preparing all materials for:
 (1)  project scope determination;
 (2)  environmental reports;
 (3)  the environmental review document;
 (4)  environmental permits and conditions;
 (5)  coordination with resource agencies; and
 (6)  public participation.
 Sec. 201.757.  DETERMINATION OF ADMINISTRATIVELY COMPLETE
 ENVIRONMENTAL REVIEW DOCUMENT. (a)  A local government sponsor's
 submission of an environmental review document must include a
 statement from the local government sponsor that the document is
 administratively complete, ready for technical review, and
 compliant with all applicable requirements.
 (b)  Not later than the 20th day after the date the
 department receives a local government sponsor's environmental
 review document, the department shall either:
 (1)  issue a letter confirming that the document is
 administratively complete and ready for technical review; or
 (2)  decline to issue a letter confirming that the
 document is administratively complete and ready for technical
 review, in accordance with Section 201.758.
 Sec. 201.758.  DEPARTMENT DECLINES TO CONFIRM THAT DOCUMENT
 IS ADMINISTRATIVELY COMPLETE.  (a)  The department may decline to
 issue a letter confirming that an environmental review document is
 administratively complete and ready for technical review only if
 the department sends a written response to the local government
 sponsor specifying in reasonable detail the basis for its
 conclusions, including a listing of any required information
 determined by the department to be missing from the document.
 (b)  If the department provides notice under Subsection (a),
 the department shall undertake all reasonable efforts to cooperate
 with the local government sponsor in a timely manner to ensure that
 the environmental review document is administratively complete.
 (c)  The local government sponsor may resubmit any
 environmental review document determined by the department under
 Section 201.757 not to be administratively complete, and the
 department shall issue a determination letter on the resubmitted
 document not later than the 20th day after the date the document is
 resubmitted.
 Sec. 201.759.  REVIEW DEADLINES. (a)  The following
 deadlines must be included in the standards adopted under Section
 201.752:
 (1)  the department shall issue a classification letter
 not later than the 30th day after the date the department receives
 notice from a local government sponsor under Section 201.755;
 (2)  for a project classified as a programmatic
 categorical exclusion, the environmental decision must be rendered
 not later than the 60th day after the date the supporting
 documentation is received by the department;
 (3)  for a project classified as a categorical
 exclusion, the environmental decision must be rendered not later
 than the 90th day after the date the supporting documentation is
 received by the department;
 (4)  for a project that requires the preparation of an
 environmental assessment:
 (A)  the department must provide all department
 comments on a draft environmental assessment not later than the
 90th day after the date the draft is received by the department; and
 (B)  the department must render the environmental
 decision on the project not later than the 60th day after the later
 of:
 (i)  the date the revised environmental
 assessment is submitted to the department; or
 (ii)  the date the public involvement
 process concludes;
 (5)  the department must render the environmental
 decision on any reevaluation not later than the 120th day after the
 date the supporting documentation is received by the department;
 and
 (6)  for a project that requires the preparation of an
 environmental impact statement, the department shall render the
 environmental decision not later than the 120th day after the date
 the draft final environmental impact statement is submitted.
 (b)  Review deadlines under this section specify the date by
 which the department will render the environmental decision on a
 project or the time frames by which the department will make a
 recommendation to the Federal Highway Administration, as
 applicable.
 (c)  A deadline that falls on a weekend or official state
 holiday is considered to occur on the next business day.
 Sec. 201.760.  SUSPENSION OF TIME PERIODS. The computation
 of review deadlines under Section 201.759 does not begin until an
 environmental review document is determined to be administratively
 complete, and is suspended during any period in which:
 (1)  the document that is the subject of the review is
 being revised by or on behalf of the local government sponsor in
 response to department comments;
 (2)  the highway project is the subject of additional
 work, including a change in design of the project, and during the
 identification and resolution of new significant issues; or
 (3)  the local government sponsor is preparing a
 response to any issue raised by legal counsel for the department
 concerning compliance with applicable law.
 Sec. 201.761.  AGREEMENT BETWEEN LOCAL GOVERNMENT SPONSOR
 AND DEPARTMENT. Notwithstanding any provision of this subchapter
 or any other law, a local government sponsor and the department may
 enter into an agreement that defines the relative roles and
 responsibilities of the parties in the preparation and review of
 environmental review documents for a specific project.  For a
 project for which an environmental decision requires the approval
 of the Federal Highway Administration and to the extent otherwise
 permitted by law, the Federal Highway Administration may also be a
 party to an agreement between a local government sponsor and the
 department under this section.
 Sec. 201.762.  REPORTS TO COMMISSION AND LEGISLATURE.
 (a)  Not later than June 30 and December 31 of each year, the
 department shall submit a report to the commission at a regularly
 scheduled commission meeting identifying projects being processed
 under the procedures of this subchapter and the status of each
 project, including:
 (1)  how the project was classified for environmental
 review;
 (2)  the current status of the environmental review;
 (3)  the date on which the department is required to
 make an environmental decision under applicable deadlines;
 (4)  an explanation of any delays; and
 (5)  any deadline under Section 201.759 missed by the
 department.
 (b)  Not later than December 1 of each year, the department
 shall submit a report to the members of the standing legislative
 committees with primary jurisdiction over matters related to
 transportation regarding the implementation of this subchapter,
 including a status report for the preceding 12-month period that
 contains the information described in Subsection (a).
 (c)  The department shall post copies of the reports required
 under this section on its Internet website and shall provide a copy
 of the report required by Subsection (b) to each member of the
 legislature who has at least one project covered by the report in
 the member's district.
 (d)  The department shall make available on its Internet
 website and update regularly the status of projects being processed
 under this subchapter.
 (b)  The Texas Transportation Commission shall adopt rules
 to implement Subchapter I-1, Chapter 201, Transportation Code, as
 added by this section, not later than March 1, 2012.
 (c)  Subchapter I-1, Chapter 201, Transportation Code, as
 added by this section, applies only to a notice of a local
 government sponsor proposing the sponsor's preparation of an
 environmental review document that is received by the Texas
 Department of Transportation on or after the effective date of this
 Act. Submissions to the Texas Department of Transportation
 received before the effective date of this Act are governed by the
 law in effect on the date the submission was received, and that law
 is continued in effect for that purpose.
 SECTION 22.  (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;
 (B)  complaint information on a district and a
 divisional basis; and
 (C)  the number of similar complaints filed, and
 the number of persons who filed each complaint; and
 (2)  report the information on a monthly basis to the
 division directors, office directors, and district engineers and on
 a quarterly basis to the commission.
 (b)  The Texas Transportation Commission shall adopt rules
 under Section 201.801, Transportation Code, as amended by this
 section, not later than March 1, 2012.
 SECTION 23.  Subsection (a), Section 201.802,
 Transportation Code, is amended to read as follows:
 (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].
 SECTION 24.  (a)  Subchapter J, Chapter 201, Transportation
 Code, is amended by adding Sections 201.807, 201.808, 201.809,
 201.810, and 201.811 to read as follows:
 Sec. 201.807.  PROJECT INFORMATION REPORTING SYSTEM.
 (a)  In this section, "department project" means a highway project
 under the jurisdiction of the department, including a grouped
 rehabilitation and preventive maintenance project, that:
 (1)  is being developed or is under construction; and
 (2)  is identified in the work program required under
 Section 201.998.
 (b)  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 regarding all of the department's transportation plans
 and programs, including the unified transportation program
 required by Section 201.991. The department shall post information
 on its Internet website as required by this subsection as the
 information becomes available to the department and in a manner
 that is not cost prohibitive. The project information reporting
 system shall contain information about:
 (1)  each department 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); and
 (2)  the department's funds, including each source for
 the department's funds, and the amount and general type or purpose
 of each expenditure as described in the comptroller's statewide
 accounting system, reported by each:
 (A)  department district;
 (B)  program funding category as required by
 Section 201.991(b)(2); and
 (C)  type of revenue, including revenue from a
 comprehensive development agreement or a toll project.
 (c)  In developing the project information reporting system,
 the department shall collaborate with:
 (1)  the legislature;
 (2)  local transportation entities; 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 transportation plans, including the
 unified transportation program, to determine the completion rates
 of the projects and whether the projects were completed on time.
 (f)  The department shall update the information contained
 in the project information reporting system on a regular basis, as
 specified by commission rule.
 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 in a manner
 consistent with the statewide transportation plan required by
 Section 201.601.
 (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 to
 achieve the transportation goal;
 (2)  information about the condition of the pavement
 for each highway under the jurisdiction of the department,
 including the percentage of pavement that the department determines
 to be in good or better condition;
 (3)  the condition of bridges, including information
 about bridge condition scores;
 (4)  information about peak-hour travel congestion in
 the eight largest metropolitan areas of the state; and
 (5)  information about the number of traffic fatalities
 per 100 million miles traveled.
 (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 type
 of road.
 (e)  The department shall establish criteria to prioritize
 the transportation needs for the state that are consistent with the
 statewide transportation plan.
 (f)  Each department district shall enter information into
 the transportation expenditure reporting system, including
 information about:
 (1)  each district transportation project; and
 (2)  the category to which the project has been
 assigned and the priority of the project in the category under
 Section 201.995.
 (g)  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.
 (h)  To provide a means of verifying the accuracy of
 information being made available through the transportation
 expenditure reporting system, the department shall retain and
 archive appropriate documentation supporting the expenditure
 information or data summary that is detailed in the reporting
 system, by archiving copies of the original supporting
 documentation in a digital, electronic, or other appropriate format
 of storage or imaging that allows departmental management and
 retrieval of the records.  Supporting documentation may include
 contract or transactional documents, letter agreements, invoices,
 statements, payment vouchers, requests for object of expenditure
 payments to be made by or on behalf of the department, and other
 items establishing the purpose and payment of the expenditure.  The
 documentation shall be retained for the applicable period as set
 forth in rules for records retention and destruction promulgated by
 the Texas State Library and Archives Commission.
 Sec. 201.809.  STATEWIDE TRANSPORTATION REPORT. (a)  The
 department annually shall evaluate and publish a report about the
 status of each transportation goal for this state. The report must
 include:
 (1)  information about the progress of each long-term
 transportation goal that is identified by the statewide
 transportation plan;
 (2)  the status of each project identified as a major
 priority;
 (3)  a summary of the number of statewide project
 implementation benchmarks that have been completed; and
 (4)  information about the accuracy of previous
 department financial forecasts.
 (b)  The department shall disaggregate the information in
 the report by department district.
 (c)  The department shall provide a copy of the district
 report to each member of the legislature for each department
 district located in the member's legislative district, and at the
 request of a member, a department employee shall meet with the
 member to explain the report.
 (d)  The department shall provide a copy of each district
 report to the political subdivisions located in the department
 district that is the subject of the report, including:
 (1)  a municipality;
 (2)  a county; and
 (3)  a local transportation entity.
 Sec. 201.810.  DEPARTMENT INFORMATION CONSOLIDATION.
 (a)  To the extent practicable and to avoid duplication of
 reporting requirements, the department may combine the reports
 required under this subchapter with reports required under other
 provisions of this code.
 (b)  The department shall develop a central location on the
 department's Internet website that provides easily accessible and
 searchable information to the public contained in the reports
 required under this subchapter and other provisions of this code.
 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;
 (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 commission's rulemaking procedures;
 and
 (5)  require a person who makes or submits a public
 comment, at the time the comment is made or disclosed, to disclose
 in writing on a witness card whether the person:
 (A)  does business with the department;
 (B)  may benefit monetarily from a project; or
 (C)  is an employee of the department.
 (b)  The department shall document the number of positive,
 negative, or neutral public comments received regarding all
 environmental impact statements as expressed by the public through
 the department's public involvement process. The department shall:
 (1)  present this information to the commission in an
 open meeting; and
 (2)  report this information on the department's
 Internet website in a timely manner.
 (b)  Not later than September 1, 2011, the Texas Department
 of Transportation shall establish the central location on the
 department's Internet website required by Section 201.810,
 Transportation Code, as added by this section.
 SECTION 25.  Chapter 201, Transportation Code, is amended by
 adding Subchapter P to read as follows:
 SUBCHAPTER P.  UNIFIED TRANSPORTATION PROGRAM
 Sec. 201.991.  UNIFIED TRANSPORTATION PROGRAM. (a)  The
 department shall develop a unified transportation program covering
 a period of 10 years to guide the development of and authorize
 construction of transportation projects. The program must:
 (1)  annually identify target funding levels; and
 (2)  list all projects that the department intends to
 develop or begin construction of during the program period.
 (b)  The commission shall adopt rules that:
 (1)  specify the criteria for selecting projects to be
 included in the program;
 (2)  define program funding categories, including
 categories for safety, maintenance, and mobility; and
 (3)  define each phase of a major transportation
 project, including the planning, programming, implementation, and
 construction phases.
 (c)  The department shall publish the entire unified
 transportation program and summary documents highlighting project
 benchmarks, priorities, and forecasts in appropriate media and on
 the department's Internet website in a format that is easily
 understandable by the public.
 (d)  In developing the rules required by this section, the
 commission shall collaborate with local transportation entities.
 Sec. 201.992.  ANNUAL UPDATE TO UNIFIED TRANSPORTATION
 PROGRAM. (a)  The department shall annually update the unified
 transportation program.
 (b)  The annual update must include:
 (1)  the annual funding forecast required by Section
 201.993;
 (2)  the list of major transportation projects required
 by Section 201.994(b); and
 (3)  the category to which the project has been
 assigned and the priority of the project in the category under
 Section 201.995.
 (c)  The department shall collaborate with local
 transportation entities to develop the annual update to the unified
 transportation program.
 Sec. 201.993.  ANNUAL FUNDING AND CASH FLOW FORECASTS.
 (a)  The department annually shall:
 (1)  develop and publish a forecast of all funds the
 department expects to receive, including funds from this state and
 the federal government; and
 (2)  use that forecast to guide planning for the
 unified transportation program.
 (b)  The department shall collaborate with local
 transportation entities to develop scenarios for the forecast
 required by Subsection (a) based on mutually acceptable funding
 assumptions.
 (c)  Not later than September 1 of each year, the department
 shall prepare and publish a cash flow forecast for a period of 20
 years.
 Sec. 201.994.  MAJOR TRANSPORTATION PROJECTS. (a)  The
 commission by rule shall:
 (1)  establish criteria for designating a project as a
 major transportation project;
 (2)  develop benchmarks for evaluating the progress of
 a major transportation project and timelines for implementation and
 construction of a major transportation project; and
 (3)  determine which critical benchmarks must be met
 before a major transportation project may enter the implementation
 phase of the unified transportation program.
 (b)  The department annually shall update the list of
 projects that are designated as major transportation projects.
 (c)  In adopting rules required by this section, the
 commission shall collaborate with local transportation entities.
 Sec. 201.995.  PRIORITY PROJECTS IN PROGRAM CATEGORIES.
 (a)  The commission by rule shall:
 (1)  establish categories in the unified
 transportation program;
 (2)  assign each project identified in the program to a
 category; and
 (3)  designate the priority ranking of each project
 within each category.
 (b)  The department shall collaborate with local
 transportation entities when assigning each project included in the
 unified transportation program to a category established under
 Subsection (a).
 (c)  The highest priority projects within an applicable
 category of the unified transportation program must be projects
 designated as major transportation projects.
 Sec. 201.996.  FUNDING ALLOCATION. (a)  For each funding
 category established under Section 201.991(b)(2), the commission
 by rule shall specify the formulas for allocating funds to
 districts and metropolitan planning organizations for:
 (1)  preventive maintenance and rehabilitation of the
 state highway system in all districts;
 (2)  mobility and added capacity projects in
 metropolitan and urban areas;
 (3)  mobility and added capacity projects on major
 state highways that provide statewide connectivity between urban
 areas and highway system corridors;
 (4)  congestion mitigation and air quality improvement
 projects in nonattainment areas;
 (5)  metropolitan mobility and added capacity projects
 within the boundaries of designated metropolitan planning areas of
 metropolitan planning organizations located in a transportation
 management area;
 (6)  transportation enhancements project funding; and
 (7)  projects eligible for federal or state funding, as
 determined by the applicable district engineer.
 (b)  Subject to applicable state and federal law, the
 commission shall determine the allocation of funds in all of the
 other categories established under Section 201.991(b)(2),
 including a category for projects of specific importance to the
 state, including projects that:
 (1)  promote economic opportunity;
 (2)  increase efficiency on military deployment routes
 or that retain military assets; and
 (3)  maintain the ability of appropriate entities to
 respond to emergencies.
 (c)  The commission shall update the formulas established
 under this section at least every four years.
 Sec. 201.997.  FUND DISTRIBUTION. (a)  The department shall
 allocate funds to the department districts based on the formulas
 adopted under Section 201.996.
 (b)  In distributing funds to department districts, the
 department may not exceed the cash flow forecast prepared and
 published under Section 201.993(c).
 Sec. 201.998.  WORK PROGRAM. (a)  Each department district
 shall develop a consistently formatted work program based on the
 unified transportation program covering a period of four years that
 contains all projects that the district proposes to implement
 during that period.
 (b)  The work program must contain:
 (1)  information regarding the progress of projects
 designated as major transportation projects, according to project
 implementation benchmarks and timelines established under Section
 201.994; and
 (2)  a summary of the progress on other district
 projects.
 (c)  The department shall use the work program to:
 (1)  monitor the performance of the district; and
 (2)  evaluate the performance of district employees.
 (d)  The department shall publish the work program in
 appropriate media and on the department's Internet website.
 SECTION 26.  Section 202.021, Transportation Code, is
 amended by amending Subsection (e) and adding Subsection (e-1) to
 read as follows:
 (e)  The commission may waive payment for real property
 transferred to a governmental entity under this section if:
 (1)  the estimated cost of future maintenance on the
 property equals or exceeds the fair value of the property; or
 (2)  the property is a highway right-of-way and the
 governmental entity assumes or has assumed jurisdiction, control,
 and maintenance of the right-of-way for public road purposes.
 (e-1)  A grant transferring real property under Subsection
 (e)(2) must contain a reservation providing that if property
 described by that subsection ceases to be used for public road
 purposes, that real property shall immediately and automatically
 revert to this state.
 SECTION 27.  Subchapter A, Chapter 222, Transportation Code,
 is amended by adding Sections 222.005 and 222.006 to read as
 follows:
 Sec. 222.005.  AUTHORIZATION TO PROVIDE ASSISTANCE TO
 EXPEDITE ENVIRONMENTAL REVIEW. (a)  The department, a county, a
 regional tollway authority operating under Chapter 366, or a
 regional mobility authority operating under Chapter 370 may enter
 into an agreement to provide funds to a state or federal agency to
 expedite the agency's performance of its duties related to the
 environmental review process for the applicable entity's
 transportation projects, including those listed in the applicable
 metropolitan planning organization's long-range transportation
 plan under 23 U.S.C. Section 134.
 (b)  Except as provided by Subsection (c), an agreement
 entered into under this section:
 (1)  may specify transportation projects the
 applicable entity considers to be priorities for review; and
 (2)  must require the agency receiving money to
 complete the environmental review in less time than is customary
 for the completion of environmental review by that agency.
 (c)  The department may enter into a separate agreement for a
 transportation project that the department determines has regional
 importance.
 (d)  An agreement entered into under this section does not
 diminish or modify the rights of the public regarding review and
 comment on transportation projects.
 (e)  An entity entering into an agreement under this section
 shall make the agreement available on the entity's Internet
 website.
 Sec. 222.006.  ENVIRONMENTAL REVIEW CERTIFICATION PROCESS.
 The department by rule shall establish a process to certify
 department district environmental specialists to work on all
 documents related to state and federal environmental review
 processes. The certification process must:
 (1)  be available to department employees; and
 (2)  require continuing education for recertification.
 SECTION 28.  Subsection (i), Section 222.106,
 Transportation Code, is amended to read as follows:
 (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.  A municipality may
 issue bonds to pay all or part of the cost of the transportation
 project and may pledge and assign all or a specified amount of money
 in the tax increment account to secure repayment of those bonds.
 [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.]
 SECTION 29.  Section 222.107, Transportation Code, is
 amended by amending Subsections (f) and (h) and adding Subsections
 (h-1) and (i-1) to read as follows:
 (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 that the base year shall be
 the year of passage of the order or resolution or some year in the
 future; [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;
 (4)  designate the base year for purposes of
 establishing the tax increment base of the county; and
 (5)  establish an ad valorem tax increment account for
 the zone.
 (h)  The commissioners court may:
 (1)  from taxes collected on property in a zone, pay
 into a tax increment account for the zone an amount equal to the tax
 increment produced by the county less any amounts allocated under
 previous agreements, including agreements under Section 381.004,
 Local Government Code, or Chapter 312, Tax Code;
 (2)  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 imposed by the county on the owner's property;
 (3)  by order or resolution elect to abate all or a
 portion of the ad valorem taxes imposed by the county on all real
 property in a zone; or
 (4)  grant other relief from ad valorem taxes on
 property in a zone.
 (h-1)  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 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 Section 381.004, Local Government Code,
 or Chapter 312, Tax Code.
 (i-1)  In the event a county collects a tax increment, it may
 issue bonds to pay all or part of the cost of a transportation
 project and may pledge and assign all or a specified amount of money
 in the tax increment account to secure those bonds.
 SECTION 30.  Section 223.002, Transportation Code, is
 amended to read as follows:
 Sec. 223.002.  NOTICE OF BIDS [BY PUBLICATION].  [(a)]  The
 department shall give [publish] notice regarding [of] the time and
 place at which bids on a contract will be opened and the contract
 awarded. The commission by rule shall determine the most effective
 method for providing the notice required by this section.
 [(b)     The notice must be published in a newspaper published
 in the county in which the improvement is to be made once a week for
 at least two weeks before the time set for awarding the contract and
 in two other newspapers that the department may designate.
 [(c)     Instead of the notice required by Subsection (b), if
 the department estimates that the contract involves an amount less
 than $300,000, notice may be published in two successive issues of a
 newspaper published in the county in which the improvement is to be
 made.
 [(d)     If a newspaper is not published in the county in which
 the improvement is to be made, notice shall be published in a
 newspaper published in the county:
 [(1)     nearest the county seat of the county in which the
 improvement is to be made; and
 [(2)  in which a newspaper is published.]
 SECTION 31.  Section 223.201, Transportation Code, is
 amended by amending Subsections (f) and (i) and adding Subsections
 (j), (k), (l), and (m) to read as follows:
 (f)  The department may [Except as provided by Subsections
 (h) and (i), the authority to] enter into a comprehensive
 development agreement only for all or part of:
 (1)  the State Highway 99 (Grand Parkway) project;
 (2)  the Interstate Highway 35E managed lanes project
 in Dallas and Denton Counties from Interstate Highway 635 to U.S.
 Highway 380;
 (3)  the North Tarrant Express project in Tarrant and
 Dallas Counties, including:
 (A)  on State Highway 183 from State Highway 121
 to State Highway 161 (Segment 2E);
 (B)  on Interstate Highway 35W from Interstate
 Highway 30 to State Highway 114 (Segments 3A, 3B, and 3C); and
 (C)  on Interstate Highway 820 from State Highway
 183 North to south of Randol Mill Road (Segment 4);
 (4)  the State Highway 183 managed lanes project in
 Dallas County from State Highway 161 to Interstate Highway 35E;
 (5)  the State Highway 249 project in Harris and
 Montgomery Counties from Spring Cypress Road to Farm-to-Market Road
 1774;
 (6)  the State Highway 288 project in Brazoria County
 and Harris County; and
 (7)  the U.S. Highway 290 Hempstead managed lanes
 project in Harris County from Interstate Highway 610 to State
 Highway 99 [agreements provided by this section expires on August
 31, 2009].
 (i)  The authority to enter into a comprehensive development
 agreement for a project described by Subsection (f), other than the
 State Highway 99 (Grand Parkway) project [exempted from Subsection
 (f) or Section 223.210(b)] expires August 31, 2015 [2011].
 (j)  Before the department may enter into a comprehensive
 development agreement under Subsection (f), the department must:
 (1)  obtain, not later than August 31, 2013, the
 appropriate environmental clearance for any project other than the
 State Highway 99 (Grand Parkway) project; and
 (2)  present to the commission a full financial plan
 for the project, including costing methodology and cost proposals.
 (k)  Not later than December 1, 2012, the department shall
 present a report to the commission on the status of a project
 described by Subsection (f). The report must include:
 (1)  the status of the project's environmental
 clearance;
 (2)  an explanation of any project delays; and
 (3)  if the procurement is not completed, the
 anticipated date for the completion of the procurement.
 (l)  In this section, "environmental clearance" means:
 (1)  a finding of no significant impact has been issued
 for the project; or
 (2)  for a project for which an environmental impact
 statement is prepared, a record of decision has been issued for that
 project.
 (m)  The department may not develop a project under this
 section as a project under Chapter 227.
 SECTION 32.  Subchapter E, Chapter 223, Transportation Code,
 is amended by adding Sections 223.2011 and 223.2012 to read as
 follows:
 Sec. 223.2011.  LIMITED AUTHORITY FOR CERTAIN PROJECTS USING
 COMPREHENSIVE DEVELOPMENT AGREEMENTS. (a)  Notwithstanding
 Sections 223.201(f) and 370.305(c), the department or an authority
 under Section 370.003 may enter into a comprehensive development
 agreement relating to improvements to, or construction of:
 (1)  the Loop 1 (MoPac Improvement) project from
 Farm-to-Market Road 734 to Cesar Chavez Street;
 (2)  the U.S. 183 (Bergstrom Expressway) project from
 Springdale Road to Patton Avenue; or
 (3)  a project consisting of the construction of:
 (A)  the Outer Parkway Project from U.S. Highway
 77/83 to Farm-to-Market Road 1847; and
 (B)  the South Padre Island Second Access Causeway
 Project from State Highway 100 to Park Road 100.
 (b)  Before the department or an authority may enter into a
 comprehensive development agreement under this section, the
 department or the authority, as applicable, must meet the
 requirements under Section 223.201(j).
 (c)  Not later than December 1, 2012, the department or the
 authority, as applicable, shall present a report to the commission
 on the status of a project described by Subsection (a). The report
 must include:
 (1)  the status of the project's environmental
 clearance;
 (2)  an explanation of any project delays; and
 (3)  if the procurement is not completed, the
 anticipated date for the completion of the procurement.
 (d)  The department may not provide any financial assistance
 to an authority to pay for the costs of procuring an agreement under
 this section.
 (e)  In this section, "environmental clearance" means:
 (1)  a finding of no significant impact has been issued
 for the project; or
 (2)  for a project for which an environmental impact
 statement is prepared, a record of decision has been issued for that
 project.
 (f)  The authority to enter into a comprehensive development
 agreement under this section expires August 31, 2015.
 Sec. 223.2012.  NORTH TARRANT EXPRESS PROJECT PROVISIONS.
 (a)  In this section, the North Tarrant Express project is the
 project described by Section 223.201(f)(3) entered into on June 23,
 2009.
 (b)  The comprehensive development agreement for the North
 Tarrant Express project may provide for negotiating and entering
 into facility agreements for future phases or segments of the
 project at the times that the department considers advantageous to
 the department.
 (c)  The department is not required to use any further
 competitive procurement process to enter into one or more related
 facility agreements with the developer or an entity controlled by,
 to be controlled by, or to be under common control with the
 developer under the comprehensive development agreement for the
 North Tarrant Express project.
 (d)  A facility agreement for the North Tarrant Express
 project must terminate on or before June 22, 2061.  A facility
 agreement may not be extended or renewed beyond that date.
 (e)  The department may include or negotiate any matter in a
 comprehensive development agreement for the North Tarrant Express
 project that the department considers advantageous to the
 department.
 (f)  The comprehensive development agreement for the North
 Tarrant Express project may provide the developer or an entity
 controlled by, to be controlled by, or to be under common control
 with the developer with a right of first negotiation under which the
 developer may elect to negotiate with the department and enter into
 one or more related facility agreements for future phases or
 segments of the project.
 SECTION 33.  Section 223.203, Transportation Code, is
 amended by adding Subsections (f-2), (l-1), (l-2), and (p) and
 amending Subsection (g) to read as follows:
 (f-2)  A private entity responding to a request for detailed
 proposals issued under Subsection (f) must identify:
 (1)  companies that will fill key project roles,
 including project management, lead design firm, quality control
 management, and quality assurance management; and
 (2)  entities that will serve as key task leaders for
 geotechnical, hydraulics and hydrology, structural, environmental,
 utility, and right-of-way issues.
 (g)  In issuing a request for detailed proposals under
 Subsection (f), the department may solicit input from entities
 qualified under Subsection (e) or any other person. The department
 may also solicit input regarding alternative technical concepts
 after issuing a request under Subsection (f).  A technical solution
 presented with a proposal must be fully responsive to, and have
 demonstrated resources to be able to fulfill, all technical
 requirements for the project, including specified quality
 assurance and quality control program requirements, safety program
 requirements, and environmental program requirements.  A proposal
 that includes a technical solution that does not meet those
 requirements is ineligible for further consideration.
 (l-1)  A private entity selected for a comprehensive
 development agreement may not make changes to the companies or
 entities identified under Subsection (f-2) unless the original
 company or entity:
 (1)  is no longer in business, is unable to fulfill its
 legal, financial, or business obligations, or can no longer meet
 the terms of the teaming agreement with the private entity;
 (2)  voluntarily removes itself from the team;
 (3)  fails to provide a sufficient number of qualified
 personnel to fulfill the duties identified during the proposal
 stage; or
 (4)  fails to negotiate in good faith in a timely manner
 in accordance with provisions established in the teaming agreement
 proposed for the project.
 (l-2)  If the private entity makes team changes in violation
 of Subsection (l-1), any cost savings resulting from the change
 accrue to the state and not to the private entity.
 (p)  All teaming agreements and subconsultant agreements
 must be executed and provided to the department before the
 execution of the comprehensive development agreement.
 SECTION 34.  Chapter 223, Transportation Code, is amended by
 adding Subchapter F to read as follows:
 SUBCHAPTER F.  DESIGN-BUILD CONTRACTS
 Sec. 223.241.  DEFINITIONS. In this subchapter:
 (1)  "Design-build contractor" means a partnership,
 corporation, or other legal entity or team that includes an
 engineering firm and a construction contractor qualified to engage
 in the construction of highway projects in this state.
 (2)  "Design-build method" means a project delivery
 method by which an entity contracts with a single entity to provide
 both design and construction services for the construction,
 rehabilitation, alteration, or repair of a facility.
 Sec. 223.242.  SCOPE OF AND LIMITATIONS ON CONTRACTS.
 (a)  Notwithstanding the requirements of Subchapter A and Chapter
 2254, Government Code, the department may use the design-build
 method for the design, construction, expansion, extension, related
 capital maintenance, rehabilitation, alteration, or repair of a
 highway project.
 (b)  A design-build contract under this subchapter may not
 grant to a private entity:
 (1)  a leasehold interest in the highway project; or
 (2)  the right to operate or retain revenue from the
 operation of a toll project.
 (c)  In using the design-build method and in entering into a
 contract for the services of a design-build contractor, the
 department and the design-build contractor shall follow the
 procedures and requirements of this subchapter.
 (d)  The department may enter into a design-build contract
 for a highway project with a construction cost estimate of $50
 million or more to the department.
 (d-1)  The department may not enter into more than three
 contracts under this section in each fiscal year.  This subsection
 expires August 31, 2015.
 (e)  Money disbursed by the department to pay engineering
 costs for the design of a project incurred by the design-build
 contractor under a design-build contract may not be included in the
 amounts under Section 223.041:
 (1)  required to be spent in a state fiscal biennium for
 engineering-related services; or
 (2)  appropriated in Strategy A.1.1,
 Plan/Design/Manage or Strategy A.1.2, Contracted Planning and
 Design of the General Appropriations Act.
 Sec. 223.243.  USE OF ENGINEER OR ENGINEERING FIRM. (a)  To
 act as the department's representative, independent of a
 design-build contractor, for the procurement process and for the
 duration of the work on a highway project, the department shall
 select or designate:
 (1)  an engineer;
 (2)  a qualified firm, selected in accordance with
 Section 2254.004, Government Code, who is independent of the
 design-build contractor; or
 (3)  a general engineering consultant that was
 previously selected by the department and is selected or designated
 in accordance with Section 2254.004, Government Code.
 (b)  The selected or designated engineer or firm has full
 responsibility for complying with Chapter 1001, Occupations Code.
 Sec. 223.244.  OTHER PROFESSIONAL SERVICES.  (a)  The
 department shall provide or contract for, independently of the
 design-build contractor, the following services as necessary for
 the acceptance of the highway project by the department:
 (1)  inspection services;
 (2)  construction materials engineering and testing;
 and
 (3)  verification testing services.
 (b)  The department shall ensure that the engineering
 services contracted for under this section are selected based on
 demonstrated competence and qualifications.
 (c)  This section does not preclude a design-build
 contractor from providing construction quality assurance and
 quality control under a design-build contract.
 Sec. 223.245.  REQUEST FOR QUALIFICATIONS. (a)  For any
 highway project to be delivered through the design-build method,
 the department must prepare and issue a request for qualifications.
 A request for qualifications must include:
 (1)  information regarding the proposed project's
 location, scope, and limits;
 (2)  information regarding funding that may be
 available for the project;
 (3)  criteria that will be used to evaluate the
 qualifications statements, which must include a proposer's
 qualifications, experience, technical competence, and ability to
 develop the project;
 (4)  the relative weight to be given to the criteria;
 and
 (5)  the deadline by which qualifications statements
 must be received by the department.
 (b)  The department shall publish notice advertising the
 issuance of a request for qualifications in the Texas Register and
 on the department's Internet website.
 (c)  The department shall evaluate each qualifications
 statement received in response to a request for qualifications
 based on the criteria identified in the request.  The department may
 interview responding proposers.  Based on the department's
 evaluation of qualifications statements and interviews, if any, the
 department shall qualify or short-list proposers to submit
 proposals.
 (d)  The department shall qualify or short-list at least two
 private entities to submit proposals under Section 223.246, but may
 not qualify or short-list more private entities than the number of
 private entities designated on the request for qualifications.
 (e)  The department may withdraw a request for
 qualifications or request for proposals at any time.
 Sec. 223.246.  REQUEST FOR PROPOSALS.  (a)  The department
 shall issue a request for proposals to proposers short-listed under
 Section 223.245.  A request for proposals must include:
 (1)  information on the overall project goals;
 (2)  publicly available cost estimates for the
 design-build portion of the project;
 (3)  materials specifications;
 (4)  special material requirements;
 (5)  a schematic design approximately 30 percent
 complete;
 (6)  known utilities, provided that the department is
 not required to undertake an effort to locate utilities;
 (7)  quality assurance and quality control
 requirements;
 (8)  the location of relevant structures;
 (9)  notice of any rules or goals adopted by the
 department relating to awarding contracts to disadvantaged
 business enterprises or small business enterprises;
 (10)  available geotechnical or other information
 related to the project;
 (11)  the status of any environmental review of the
 project;
 (12)  detailed instructions for preparing the
 technical proposal required under Subsection (d), including a
 description of the form and level of completeness of drawings
 expected;
 (13)  the relative weighting of the technical and cost
 proposals required under Subsection (d) and the formula by which
 the proposals will be evaluated and ranked; and
 (14)  the criteria to be used in evaluating the
 technical proposals, and the relative weighting of those criteria.
 (b)  The formula used to evaluate proposals under Subsection
 (a)(13) must allocate at least 70 percent of the weighting to the
 cost proposal.
 (c)  A request for proposals must also include a general form
 of the design-build contract that the department proposes and that
 may be modified as a result of negotiations prior to contract
 execution.
 (d)  Each response to a request for proposals must include a
 sealed technical proposal and a separate sealed cost proposal
 submitted to the department by the date specified in the request for
 proposals.
 (e)  The technical proposal must address:
 (1)  the proposer's qualifications and demonstrated
 technical competence, unless that information was submitted to the
 department and evaluated by the department under Section 223.245;
 (2)  the feasibility of developing the project as
 proposed, including identification of anticipated problems;
 (3)  the proposed solutions to anticipated problems;
 (4)  the ability of the proposer to meet schedules;
 (5)  the conceptual engineering design proposed; and
 (6)  any other information requested by the department.
 (f)  The department may provide for the submission of
 alternative technical concepts by a proposer. If the department
 provides for the submission of alternative technical concepts, the
 department must prescribe a process for notifying a proposer
 whether the proposer's alternative technical concepts are approved
 for inclusion in a technical proposal.
 (g)  The cost proposal must include:
 (1)  the cost of delivering the project; and
 (2)  the estimated number of days required to complete
 the project.
 (h)  A response to a request for proposals shall be due not
 later than the 180th day after the final request for proposals is
 issued by the department.  This subsection does not preclude the
 release by the department of a draft request for proposals for
 purposes of receiving input from short-listed proposers.
 (i)  The department shall first open, evaluate, and score
 each responsive technical proposal submitted on the basis of the
 criteria described in the request for proposals and assign points
 on the basis of the weighting specified in the request for
 proposals.  The department may reject as nonresponsive any proposer
 that makes a significant change to the composition of its
 design-build team as initially submitted that was not approved by
 the department as provided in the request for proposals.  The
 department shall subsequently open, evaluate, and score the cost
 proposals from proposers that submitted a responsive technical
 proposal and assign points on the basis of the weighting specified
 in the request for proposals.  The department shall rank the
 proposers in accordance with the formula provided in the request
 for proposals.
 (j)  If the department receives only one response to a
 request for proposals, an independent bid evaluation by the
 department must confirm and validate that:
 (1)  the project procurement delivered value for the
 public investment; and
 (2)  no anticompetitive practices were involved in the
 procurement.
 Sec. 223.247.  NEGOTIATION.  (a)  After ranking the
 proposers under Section 223.246(i), the department shall first
 attempt to negotiate a contract with the highest-ranked proposer.
 The department may include in the negotiations alternative
 technical concepts proposed by other proposers, subject to Section
 223.249.
 (b)  If the department is unable to negotiate a satisfactory
 contract with the highest-ranked proposer, the department shall,
 formally and in writing, end all negotiations with that proposer
 and proceed to negotiate with the next proposer in the order of the
 selection ranking until a contract is reached or negotiations with
 all ranked proposers end.
 Sec. 223.248.  ASSUMPTION OF RISKS AND COSTS. (a)  Except
 as provided by Subsection (b), the department shall assume:
 (1)  all risks and costs associated with:
 (A)  changes and modifications to the scope of the
 project requested by the department;
 (B)  unknown or differing conditions at the site
 of the project;
 (C)  applicable environmental clearance and other
 regulatory permitting necessary for the project; and
 (D)  natural disasters and other force majeure
 events; and
 (2)  all costs associated with property acquisition,
 other than costs associated with acquiring a temporary easement or
 work area used for staging or constructing the project.
 (b)  A design-build contractor may assume some or all of the
 risks or costs described by Subsection (a) if the terms of the
 assumption are reflected in the final request for proposals,
 including all supplements to the request.
 Sec. 223.249.  STIPEND AMOUNT FOR UNSUCCESSFUL PROPOSERS.
 (a)  The department shall pay an unsuccessful proposer that submits
 a responsive proposal a stipend for the work product contained in
 the proposal that the department determines can be used by the
 department in the performance of the department's functions.  The
 stipend must be a minimum of twenty-five hundredths of one percent
 of the contract amount and must be specified in the initial request
 for proposals, but may not exceed the value of the work product
 contained in the proposal that the department determines can be
 used by the department in the performance of the department's
 functions. If the department determines that the value of the work
 product is less than the stipend amount, the department shall
 provide the proposer with a detailed explanation of the valuation,
 including the methodology and assumptions used by the department in
 determining the value of the work product.  After payment of the
 stipend, the department may make use of any work product contained
 in the unsuccessful proposal, including the techniques, methods,
 processes, and information contained in the proposal.  The use by
 the department of any design element contained in an unsuccessful
 proposal is at the sole risk and discretion of the department and
 does not confer liability on the recipient of the stipend under this
 subsection.
 (b)  In a request for proposals, the department shall provide
 for the payment of a partial stipend in the event that a procurement
 is terminated before the execution of a design-build contract.
 Sec. 223.250.  PERFORMANCE OR PAYMENT BOND. (a)  The
 department shall require a design-build contractor to provide:
 (1)  a performance and payment bond;
 (2)  an alternative form of security; or
 (3)  a combination of the forms of security described
 by Subdivisions (1) and (2).
 (b)  Except as provided by Subsection (c), a performance and
 payment bond, alternative form of security, or combination of the
 forms shall be in an amount equal to the cost of constructing or
 maintaining the project.
 (c)  If the department determines that it is impracticable
 for a private entity to provide security in the amount described by
 Subsection (b), the department shall set the amount of the
 security.
 (d)  A performance and payment bond is not required for the
 portion of a design-build contract under this section that includes
 design services only.
 (e)  The department may require one or more of the following
 alternative forms of security:
 (1)  a cashier's check drawn on a financial entity
 specified by the department;
 (2)  a United States bond or note;
 (3)  an irrevocable bank letter of credit provided by a
 bank meeting the requirements specified in the request for
 proposals; or
 (4)  any other form of security determined suitable by
 the department.
 (f)  Section 223.006 of this code and Chapter 2253,
 Government Code, do not apply to a bond or alternative form of
 security required under this section.
 SECTION 35.  Subsection (b), Section 228.012,
 Transportation Code, is amended to read as follows:
 (b)  The department shall hold money in a subaccount in trust
 for the benefit of the region in which a project or system is
 located and may assign the responsibility for allocating money in a
 subaccount to a metropolitan planning organization in which the
 region is located for projects approved by the department.  Except
 as provided by Subsection (c), at the time the project is approved
 by the department money shall be allocated and distributed to
 projects authorized by Section 228.0055 or Section 228.006, as
 applicable.
 SECTION 36.  Subchapter A, Chapter 228, Transportation Code,
 is amended by adding Section 228.013 to read as follows:
 Sec. 228.013.  DETERMINATION OF FINANCIAL TERMS FOR CERTAIN
 TOLL PROJECTS. (a)  This section applies only to a proposed
 department toll project in which a private entity has a financial
 interest in the project's performance and for which:
 (1)  funds dedicated to or controlled by a region will
 be used;
 (2)  right-of-way is provided by a municipality or
 county; or
 (3)  revenues dedicated to or controlled by a
 municipality or county will be used.
 (b)  The distribution of a project's financial risk, the
 method of financing for a project, and the tolling structure and
 methodology must be determined by a committee consisting of the
 following members:
 (1)  a representative of the department;
 (2)  a representative of any local toll project entity,
 as defined by Section 371.001, for the area in which the project is
 located;
 (3)  a representative of the applicable metropolitan
 planning organization; and
 (4)  a representative of each municipality or county
 that has provided revenue or right-of-way as described by
 Subsection (a).
 SECTION 37.  Section 370.305, Transportation Code, is
 amended to read as follows:
 Sec. 370.305.  COMPREHENSIVE DEVELOPMENT AGREEMENTS.
 (a)  [An authority may use a comprehensive development agreement
 with a private entity to construct, maintain, repair, operate,
 extend, or expand a transportation project.
 [(b)]  A comprehensive development agreement is an agreement
 with a private entity that, at a minimum, provides for the design
 and construction of a transportation project, that [and] may [also]
 provide for the financing, acquisition, maintenance, or operation
 of a transportation project, and that entitles the private entity
 to:
 (1)  a leasehold interest in the transportation
 project; or
 (2)  the right to operate or retain revenue from the
 operation of the transportation project.
 (b) [(c)]  An authority may negotiate provisions relating to
 professional and consulting services provided in connection with a
 comprehensive development agreement.
 (c) [(d)]  Except as provided by this chapter, an
 authority's [Subsections (e) and (f), the] authority to enter into
 a comprehensive development agreement [agreements under this
 section] expires on August 31, 2011 [2009].
 [(e)     Subsection (d) does not apply to a comprehensive
 development agreement that does not grant a private entity a right
 to finance a toll project or a comprehensive development agreement
 in connection with a project:
 [(1)     that includes one or more managed lane facilities
 to be added to an existing controlled-access highway;
 [(2)     the major portion of which is located in a
 nonattainment or near-nonattainment air quality area as designated
 by the United States Environmental Protection Agency; and
 [(3)     for which the department has issued a request for
 qualifications before the effective date of this subsection.
 [(f)     The authority to enter into a comprehensive
 development agreement for a project exempted from Subsection (d) or
 Section 223.210(b) expires August 31, 2011.]
 SECTION 38.  Chapter 370, Transportation Code, is amended by
 adding Subchapter K to read as follows:
 SUBCHAPTER K.  DESIGN-BUILD CONTRACTS
 Sec. 370.401.  SCOPE OF AND LIMITATIONS ON CONTRACTS.
 (a)  Notwithstanding the requirements of Chapter 2254, Government
 Code, an authority may use the design-build method for the design,
 construction, financing, expansion, extension, related capital
 maintenance, rehabilitation, alteration, or repair of a
 transportation project.
 (b)  A design-build contract under this subchapter may not
 grant to a private entity:
 (1)  a leasehold interest in the transportation
 project; or
 (2)  the right to operate or retain revenue from the
 operation of the transportation project.
 (c)  In using the design-build method and in entering into a
 contract for the services of a design-build contractor, the
 authority and the design-build contractor shall follow the
 procedures and requirements of this subchapter.
 (d)  An authority may enter into not more than two
 design-build contracts for transportation projects in any fiscal
 year.
 Sec. 370.402.  DEFINITIONS. In this subchapter:
 (1)  "Design-build contractor" means a partnership,
 corporation, or other legal entity or team that includes an
 engineering firm and a construction contractor qualified to engage
 in the construction of transportation projects in this state.
 (2)  "Design-build method" means a project delivery
 method by which an entity contracts with a single entity to provide
 both design and construction services for the construction,
 rehabilitation, alteration, or repair of a facility.
 Sec. 370.403.  USE OF ENGINEER OR ENGINEERING FIRM. (a)  To
 act as an authority's representative, independent of a design-build
 contractor, for the procurement process and for the duration of the
 work on a transportation project, an authority shall select or
 designate:
 (1)  an engineer;
 (2)  a qualified firm, selected in accordance with
 Section 2254.004, Government Code, that is independent of the
 design-build contractor; or
 (3)  a general engineering consultant that was
 previously selected by an authority and is selected or designated
 in accordance with Section 2254.004, Government Code.
 (b)  The selected or designated engineer or firm has full
 responsibility for complying with Chapter 1001, Occupations Code.
 Sec. 370.404.  OTHER PROFESSIONAL SERVICES. (a)  An
 authority shall provide or contract for, independently of the
 design-build firm, the following services as necessary for the
 acceptance of the transportation project by the authority:
 (1)  inspection services;
 (2)  construction materials engineering and testing;
 and
 (3)  verification testing services.
 (b)  An authority shall ensure that the engineering services
 contracted for under this section are selected based on
 demonstrated competence and qualifications.
 (c)  This section does not preclude the design-build
 contractor from providing construction quality assurance and
 quality control under a design-build contract.
 Sec. 370.405.  REQUEST FOR QUALIFICATIONS. (a)  For any
 transportation project to be delivered through the design-build
 method, an authority must prepare and issue a request for
 qualifications.  A request for qualifications must include:
 (1)  information regarding the proposed project's
 location, scope, and limits;
 (2)  information regarding funding that may be
 available for the project and a description of the financing to be
 requested from the design-build contractor, as applicable;
 (3)  criteria that will be used to evaluate the
 proposals, which must include a proposer's qualifications,
 experience, technical competence, and ability to develop the
 project;
 (4)  the relative weight to be given to the criteria;
 and
 (5)  the deadline by which proposals must be received
 by the authority.
 (b)  An authority shall publish notice advertising the
 issuance of a request for qualifications in the Texas Register and
 on an Internet website maintained by the authority.
 (c)  An authority shall evaluate each qualifications
 statement received in response to a request for qualifications
 based on the criteria identified in the request.  An authority may
 interview responding proposers.  Based on the authority's
 evaluation of qualifications statements and interviews, if any, an
 authority shall qualify or short-list proposers to submit detailed
 proposals.
 (d)  An authority shall qualify or short-list at least two,
 but no more than five, firms to submit detailed proposals under
 Section 370.406.  If an authority receives only one responsive
 proposal to a request for qualifications, the authority shall
 terminate the procurement.
 (e)  An authority may withdraw a request for qualifications
 or request for detailed proposals at any time.
 Sec. 370.406.  REQUEST FOR DETAILED PROPOSALS. (a)  An
 authority shall issue a request for detailed proposals to proposers
 qualified or short-listed under Section 370.405. A request for
 detailed proposals must include:
 (1)  information on the overall project goals;
 (2)  the authority's cost estimates for the
 design-build portion of the work;
 (3)  materials specifications;
 (4)  special material requirements;
 (5)  a schematic design approximately 30 percent
 complete;
 (6)  known utilities, provided that an authority is not
 required to undertake an effort to locate utilities;
 (7)  quality assurance and quality control
 requirements;
 (8)  the location of relevant structures;
 (9)  notice of any rules or goals adopted by the
 authority pursuant to Section 370.183 relating to awarding
 contracts to disadvantaged businesses;
 (10)  available geotechnical or other information
 related to the project;
 (11)  the status of any environmental review of the
 project;
 (12)  detailed instructions for preparing the
 technical proposal required under Subsection (c), including a
 description of the form and level of completeness of drawings
 expected;
 (13)  the relative weighting of the technical and cost
 proposals required under Subsection (c) and the formula by which
 the proposals will be evaluated and ranked, provided that the
 formula shall allocate at least 70 percent of the weighting to the
 cost proposal; and
 (14)  the criteria and weighting for each element of
 the technical proposal.
 (b)  A request for detailed proposals shall also include a
 general form of the design-build contract that the authority
 proposes if the terms of the contract may be modified as a result of
 negotiations prior to contract execution.
 (c)  Each response to a request for detailed proposals must
 include a sealed technical proposal and a separate sealed cost
 proposal.
 (d)  The technical proposal must address:
 (1)  the proposer's qualifications and demonstrated
 technical competence, provided that the proposer shall not be
 requested to resubmit any information that was submitted and
 evaluated pursuant to Section 370.405(a)(3);
 (2)  the feasibility of developing the project as
 proposed, including identification of anticipated problems;
 (3)  the proposed solutions to anticipated problems;
 (4)  the ability of the proposer to meet schedules;
 (5)  the conceptual engineering design proposed; and
 (6)  any other information requested by the authority.
 (e)  An authority may provide for the submission of
 alternative technical concepts by a proposer.  If an authority
 provides for the submission of alternative technical concepts, the
 authority must prescribe a process for notifying a proposer whether
 the proposer's alternative technical concepts are approved for
 inclusion in a technical proposal.
 (f)  The cost proposal must include:
 (1)  the cost of delivering the project;
 (2)  the estimated number of days required to complete
 the project; and
 (3)  any terms for financing for the project that the
 proposer plans to provide.
 (g)  A response to a request for detailed proposals shall be
 due not later than the 180th day after the final request for
 detailed proposals is issued by the authority.  This subsection
 does not preclude the release by the authority of a draft request
 for detailed proposals for purposes of receiving input from
 short-listed proposers.
 (h)  An authority shall first open, evaluate, and score each
 responsive technical proposal submitted on the basis of the
 criteria described in the request for detailed proposals and assign
 points on the basis of the weighting specified in the request for
 detailed proposals. The authority may reject as nonresponsive any
 proposer that makes a significant change to the composition of its
 design-build team as initially submitted that was not approved by
 the authority as provided in the request for detailed proposals.
 The authority shall subsequently open, evaluate, and score the cost
 proposals from proposers that submitted a responsive technical
 proposal and assign points on the basis of the weighting specified
 in the request for detailed proposals. The authority shall rank the
 proposers in accordance with the formula provided in the request
 for detailed proposals.
 Sec. 370.407.  NEGOTIATION. (a)  After ranking the
 proposers under Section 370.406(h), an authority shall first
 attempt to negotiate a contract with the highest-ranked proposer.
 If an authority has committed to paying a stipend to unsuccessful
 proposers in accordance with Section 370.409, an authority may
 include in the negotiations alternative technical concepts
 proposed by other proposers.
 (b)  If an authority is unable to negotiate a satisfactory
 contract with the highest-ranked proposer, the authority shall,
 formally and in writing, end all negotiations with that proposer
 and proceed to negotiate with the next proposer in the order of the
 selection ranking until a contract is reached or negotiations with
 all ranked proposers end.
 Sec. 370.408.  ASSUMPTION OF RISKS. (a)  Unless otherwise
 provided in the final request for detailed proposals, including all
 addenda and supplements to that request, the authority shall
 assume:
 (1)  all risks and costs associated with:
 (A)  scope changes and modifications, as
 requested by the authority;
 (B)  unknown or differing site conditions;
 (C)  environmental clearance and other regulatory
 permitting for the project; and
 (D)  natural disasters and other force majeure
 events; and
 (2)  all costs associated with property acquisition,
 excluding costs associated with acquiring a temporary easement or
 work area associated with staging or construction for the project.
 (b)  Nothing herein shall prevent the parties from agreeing
 that the design-build contractor should assume some or all of the
 risks or costs set forth in Subsection (a) provided that such
 agreement is reflected in the final request for detailed proposals,
 including all addenda and supplements to the agreement.
 Sec. 370.409.  STIPEND AMOUNT FOR UNSUCCESSFUL PROPOSERS.
 (a)  Pursuant to the provisions of the request for detailed
 proposals, an authority shall pay an unsuccessful proposer that
 submits a responsive proposal to the request for detailed proposals
 a stipend for work product contained in the proposal.  The stipend
 must be specified in the initial request for detailed proposals in
 an amount of at least two-tenths of one percent of the contract
 amount, but may not exceed the value of the work product contained
 in the proposal to the authority.  In the event the authority
 determines that the value of the work product is less than the
 stipend amount, the authority must provide the proposer with a
 detailed explanation of the valuation, including the methodology
 and assumptions used in determining value.  After payment of the
 stipend, the authority may make use of any work product contained in
 the unsuccessful proposal, including the techniques, methods,
 processes, and information contained in the proposal.  The use by
 the authority of any design element contained in an unsuccessful
 proposal is at the sole risk and discretion of the authority and
 does not confer liability on the recipient of the stipend under this
 subsection.
 (b)  An authority may provide in a request for detailed
 proposals for the payment of a partial stipend in the event a
 procurement is terminated prior to securing project financing and
 execution of a design-build contract.
 Sec. 370.410.  PERFORMANCE AND PAYMENT BOND. (a)  An
 authority shall require a design-build contractor to provide:
 (1)  a performance and payment bond;
 (2)  an alternative form of security; or
 (3)  a combination of the forms of security described
 by Subdivisions (1) and (2).
 (b)  Except as provided by Subsection (c), a performance and
 payment bond, alternative form of security, or combination of the
 forms of security shall be in an amount equal to the cost of
 constructing or maintaining the project.
 (c)  If the authority determines that it is impracticable for
 a private entity to provide security in the amount described by
 Subsection (b), the authority shall set the amount of the security.
 (d)  A performance and payment bond is not required for the
 portion of a design-build contract under this section that includes
 design services only.
 (e)  An authority may require one or more of the following
 alternative forms of security:
 (1)  a cashier's check drawn on a financial entity
 specified by the authority;
 (2)  a United States bond or note;
 (3)  an irrevocable bank letter of credit drawn from a
 federal or Texas chartered bank; or
 (4)  any other form of security determined suitable by
 the authority.
 (f)  Chapter 2253, Government Code, does not apply to a bond
 or alternative form of security required under this section.
 SECTION 39.  Section 391.004, Transportation Code, is
 amended to read as follows:
 Sec. 391.004.  DISPOSITION OF FEES [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 state [Texas] highway [beautification] fund
 [account]. The commission shall use money in the state [Texas]
 highway [beautification] fund [account] to administer this chapter
 and Chapter 394.
 SECTION 40.  (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 commission 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
 the department's procedures for complaint investigation and
 resolution, including making information about the procedures
 available on the department's Internet website;
 (2)  a system to prioritize complaints so that the most
 serious complaints receive attention before less serious
 complaints; and
 (3)  a procedure for compiling and reporting detailed
 annual statistics about complaints.
 (b)  The department shall develop and provide a simple form
 for filing complaints with the department.
 (c)  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.
 (d)  The department shall keep, in accordance with the
 department's approved records retention schedule, 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.
 (e)  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, 2012.
 SECTION 41.  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 state highway fund.
 SECTION 42.  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 the number of off-premise signs
 under Chapter 394 owned by a license applicant.
 SECTION 43.  Subsection (b), Section 391.065,
 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 44.  Section 391.066, Transportation Code, is
 amended by adding Subsection (d) to read as follows:
 (d)  The commission may deny the renewal of a license
 holder's license if the license holder has not complied with the
 permit requirements of this chapter or Chapter 394.
 SECTION 45.  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 46.  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
 state highway fund.
 SECTION 47.  (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 commission 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
 the department's procedures for complaint investigation and
 resolution, including making information about the procedures
 available on the department's Internet website;
 (2)  a system to prioritize complaints so that the most
 serious complaints receive attention before less serious
 complaints; and
 (3)  a procedure for compiling and reporting detailed
 annual statistics about complaints.
 (b)  The department shall develop and provide a simple form
 for filing complaints with the department.
 (c)  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.
 (d)  The department shall keep, pursuant to the department's
 approved records retention schedule, 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.
 (e)  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, 2012.
 SECTION 48.  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 49.  (a)  Subchapter B, Chapter 394, Transportation
 Code, is amended by adding Sections 394.0201, 394.0202, 394.0203,
 394.0204, 394.0205, 394.0206, 394.0207, 394.027, 394.028, and
 394.029 to read as follows:
 Sec. 394.0201.  ERECTING OFF-PREMISE SIGN WITHOUT LICENSE;
 OFFENSE. (a)  A person commits an offense if the person wilfully
 erects or maintains an off-premise sign on a rural road without a
 license under this subchapter.
 (b)  An offense under this section is a misdemeanor
 punishable by a fine of not less than $500 or more than $1,000.  Each
 day of the proscribed conduct is a separate offense.
 (c)  A person is not required to obtain a license to erect or
 maintain an on-premise sign.
 Sec. 394.0202.  ISSUANCE AND PERIOD OF LICENSE. (a)  The
 commission shall issue a license to a person who:
 (1)  files with the commission a completed application
 form within the time specified by the commission;
 (2)  pays the appropriate license fee; and
 (3)  files with the commission a surety bond.
 (b)  A license may be issued for one year or longer.
 (c)  At least 30 days before the date on which a person's
 license expires, the commission shall notify the person of the
 impending expiration. The notice must be in writing and sent to the
 person's last known address according to the records of the
 commission.
 Sec. 394.0203.  LICENSE FEE. The commission may set the
 amount of a license fee according to a scale graduated by the number
 of off-premise signs and units of outdoor advertising under Chapter
 391 owned by a license applicant.
 Sec. 394.0204.  SURETY BOND. (a)  The surety bond required
 of an applicant for a license under Section 394.0202 must be:
 (1)  in the amount of $2,500 for each county in the
 state in which the person erects or maintains an off-premise sign;
 and
 (2)  payable to the commission for reimbursement for
 removal costs of an off-premise sign that the license holder
 unlawfully erects or maintains.
 (b)  A person may not be required to provide more than
 $10,000 in surety bonds.
 Sec. 394.0205.  RULES; FORMS. (a)  The commission may adopt
 rules to implement Sections 394.0201(a), 394.0202, 394.0203,
 394.0204, and 394.0206.
 (b)  For the efficient management and administration of this
 chapter and to reduce the number of employees required to enforce
 this chapter, the commission shall adopt rules for issuing
 standardized forms that are for submission by license holders and
 applicants and that provide for an accurate showing of the number,
 location, or other information required by the commission for each
 license holder's or applicant's off-premise signs or outdoor
 advertising under Chapter 391.
 (c)  The commission may not adopt a rule under this chapter
 that restricts competitive bidding or advertising by the holder of
 a license issued under this chapter other than a rule to prohibit
 false, misleading, or deceptive practices. The limitation provided
 by this section applies only to rules relating to the occupation of
 outdoor advertiser and does not affect the commission's power to
 regulate the orderly and effective display of an off-premise sign
 under this chapter. A rule to prohibit false, misleading, or
 deceptive practices may not:
 (1)  restrict the use of:
 (A)  any legal medium for an advertisement;
 (B)  the license holder's advertisement under a
 trade name; or
 (C)  the license holder's personal appearance or
 voice in an advertisement, if the license holder is an individual;
 or
 (2)  relate to the size or duration of an advertisement
 by the license holder.
 Sec. 394.0206.  REVOCATION OR SUSPENSION OF LICENSE; APPEAL.
 (a)  The commission may revoke or suspend a license issued under
 this subchapter or place on probation a license holder whose
 license is suspended if the license holder violates this chapter or
 a rule adopted under this chapter. If the suspension of the license
 is probated, the department may require the license holder to
 report regularly to the commission on any matter that is the basis
 of the probation.
 (b)  The judicial appeal of the revocation or suspension of a
 license must be initiated not later than the 15th day after the date
 of the commission's action.
 (c)  The commission may adopt rules for the reissuance of a
 revoked or suspended license and may set fees for the reissuance.
 (d)  The commission may deny the renewal of a license
 holder's existing license if the license holder has not complied
 with the permit requirements of this chapter or Chapter 391.
 Sec. 394.0207.  APPLICABILITY OF LICENSE.  In addition to
 authorizing a person to erect or maintain an off-premise sign, a
 license issued under this chapter authorizes a person to erect or
 maintain outdoor advertising under Chapter 391.
 Sec. 394.027.  DENIAL OF PERMIT; APPEAL. The commission may
 create a process by which an applicant may appeal a denial of a
 permit under this subchapter.
 Sec. 394.028.  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. 394.029.  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).
 (b)  The change in law made by Section 394.0201,
 Transportation Code, as added by this section, applies only to an
 off-premise sign erected or for which the permit expires on or after
 the effective date of this Act. An off-premise sign for which a
 permit is issued before the effective date of this Act is covered by
 the law in effect when the permit was issued, and the former law is
 continued in effect for that purpose.
 SECTION 50.  Section 394.050, Transportation Code, is
 amended to read as follows:
 Sec. 394.050.  [BOARD OF] VARIANCE.  The commission or a
 person designated by the 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 51.  Subsections (a) and (d), Section 394.082,
 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].
 SECTION 52.  Subchapter D, Chapter 472, Transportation Code,
 is amended by adding Section 472.035 to read as follows:
 Sec. 472.035.  COORDINATION WITH DEPARTMENT TO DEVELOP
 LONG-TERM PLANNING ASSUMPTIONS. Each metropolitan planning
 organization shall work 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 in the organization's long-range transportation
 plan.
 SECTION 53.  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 in cooperation
 with local governments shall actively manage a system of changeable
 message signs located on highways under the jurisdiction of the
 department to mitigate traffic congestion by providing current
 information to the traveling public, including information about
 traffic incidents, weather conditions, road construction, and
 alternative routes when applicable.
 SECTION 54.  Section 621.001, Transportation Code, is
 amended by amending Subdivisions (3) and (4) and adding Subdivision
 (13) to read as follows:
 (3)  "Department" means the Texas Department of Motor
 Vehicles [Transportation].
 (4)  "Director" means the executive director of the
 Texas Department of Motor Vehicles [Transportation].
 (13)  "Board" means the board of the Texas Department
 of Motor Vehicles.
 SECTION 55.  Subsection (a), Section 621.003,
 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 56.  Section 621.004, Transportation Code, is
 amended to read as follows:
 Sec. 621.004.  ADMISSIBILITY OF CERTIFICATE OF VERTICAL
 CLEARANCE. In each civil or criminal proceeding in which a
 violation of this chapter may be an issue, a certificate of the
 vertical clearance of a structure, including a bridge or underpass,
 signed by the executive director of the Texas Department of
 Transportation is admissible in evidence for all purposes.
 SECTION 57.  Section 621.006, Transportation Code, is
 amended to read as follows:
 Sec. 621.006.  RESTRICTED OPERATION ON CERTAIN HOLIDAYS.
 The commission [department] by rule may impose restrictions on the
 weight and size of vehicles to be operated on state highways on the
 following holidays only:
 (1)  New Year's Day;
 (2)  Memorial Day;
 (3)  Independence Day;
 (4)  Labor Day;
 (5)  Thanksgiving Day; and
 (6)  Christmas Day.
 SECTION 58.  Subchapter A, Chapter 621, Transportation Code,
 is amended by adding Section 621.008 to read as follows:
 Sec. 621.008.  RULEMAKING AUTHORITY. The board may adopt
 rules necessary to implement and enforce this chapter.
 SECTION 59.  Section 621.102, Transportation Code, is
 amended to read as follows:
 Sec. 621.102.  [COMMISSION'S] AUTHORITY TO SET MAXIMUM
 WEIGHTS.  (a)  The executive director of the Texas Department of
 Transportation [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 executive director [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 commission must set a maximum weight under this
 section by order entered in its minutes.
 [(c)]  The executive director of the Texas Department of
 Transportation [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.
 (c) [(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 by the Texas Department of Transportation under
 order of the commission.
 (d) [(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 executive director of the Texas
 Department of Transportation [commission] has set a maximum weight
 under this section.
 (e) [(f)]  For the purpose of this section, a farm or ranch
 road is a state highway that is shown in the records of the
 commission to be a farm-to-market or ranch-to-market road.
 (f) [(g)]  This section does not apply to a vehicle
 delivering groceries, farm products, or liquefied petroleum gas.
 SECTION 60.  Subsections (a) and (b), Section 621.202,
 Transportation Code, are amended to read as follows:
 (a)  To comply with safety and operational requirements of
 federal law, the 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, conducted by the Texas Department of
 Transportation, that includes an analysis of structural capacity of
 bridges and pavements, traffic volume, unique climatic conditions,
 and width of traffic lanes support the change.
 (b)  An order under this section becomes effective on the
 designated highway or segment when appropriate signs giving notice
 of the limitations are erected by the Texas Department of
 Transportation.
 SECTION 61.  Subsections (a) and (d), Section 621.301,
 Transportation Code, are amended to read as follows:
 (a)  The commissioners court of a county may establish load
 limits for any county road or bridge only with the concurrence of
 the Texas Department of Transportation [department]. A load limit
 shall be deemed concurred with by the Texas Department of
 Transportation [department] 30 days after the county submits to the
 Texas Department of Transportation [department] the load limit
 accompanied by supporting documentation and calculations reviewed
 and sealed by an engineer licensed in this state, though the Texas
 Department of Transportation [department] may review the load limit
 and withdraw concurrence at any time after the 30-day period.
 (d)  A maximum weight set under this section becomes
 effective on a road when appropriate signs giving notice of the
 maximum weight are erected by the Texas Department of
 Transportation on the road under order of the commissioners court.
 SECTION 62.  Subsection (a), Section 621.352,
 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 63.  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.
 SECTION 64.  Section 621.504, Transportation Code, is
 amended to read as follows:
 Sec. 621.504.  BRIDGE OR UNDERPASS CLEARANCE. A person may
 not operate or attempt to operate a vehicle over or on a bridge or
 through an underpass or similar structure unless the height of the
 vehicle, including load, is less than the vertical clearance of the
 structure as shown by the records of the Texas Department of
 Transportation [department].
 SECTION 65.  Section 622.001, Transportation Code, is
 amended to read as follows:
 Sec. 622.001.  DEFINITIONS [DEFINITION]. In this chapter:
 (1)  "Commission" means the Texas Transportation
 Commission.
 (2)  "Department"[, "department"] means the Texas
 Department of Motor Vehicles [Transportation].
 SECTION 66.  Subchapter A, Chapter 622, Transportation Code,
 is amended by adding Section 622.002 to read as follows:
 Sec. 622.002.  RULEMAKING AUTHORITY. The board of the
 department may adopt rules necessary to implement and enforce this
 chapter.
 SECTION 67.  Subsections (a) and (b), Section 622.013,
 Transportation Code, are amended to read as follows:
 (a)  The owner of a ready-mixed concrete truck with a tandem
 axle weight heavier than 34,000 pounds shall before operating the
 vehicle on a public highway of this state file with the department a
 surety bond subject to the approval of the Texas Department of
 Transportation [department] in the principal amount set by the
 Texas Department of Transportation [department] not to exceed
 $15,000 for each truck.
 (b)  The bond must be conditioned that the owner of the truck
 will pay to the Texas Department of Transportation [state], within
 the limit of the bond, any damage to a highway caused by the
 operation of the truck.
 SECTION 68.  Subsections (a) and (b), Section 622.134,
 Transportation Code, are amended to read as follows:
 (a)  Except as provided by Subsection (c), the owner of a
 vehicle covered by this subchapter with a tandem axle weight
 heavier than 34,000 pounds shall before operating the vehicle on a
 public highway of this state file with the department a surety bond
 subject to the approval of the Texas Department of Transportation
 [department] in the principal amount set by the Texas Department of
 Transportation [department] not to exceed $15,000 for each vehicle.
 (b)  The bond must be conditioned that the owner of the
 vehicle will pay, within the limits of the bond, to the Texas
 Department of Transportation [state] any damage to a highway, to a
 county any damage to a county road, and to a municipality any damage
 to a municipal street caused by the operation of the vehicle.
 SECTION 69.  Section 623.001, Transportation Code, is
 amended by amending Subdivision (1) and adding Subdivisions (4) and
 (5) 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.
 (5)  "Commission" means the Texas Transportation
 Commission.
 SECTION 70.  Subchapter A, Chapter 623, Transportation Code,
 is amended by adding Sections 623.002 and 623.003 to read as
 follows:
 Sec. 623.002.  RULEMAKING AUTHORITY. The board may adopt
 rules necessary to implement and enforce this chapter.
 Sec. 623.003.  ROUTE DETERMINATION. (a)  To the extent the
 department is required to determine a route under this chapter, the
 department shall base the department's routing decision on
 information provided by the Texas Department of Transportation.
 (b)  The Texas Department of Transportation shall provide
 the department with all routing information necessary to complete a
 permit issued under Section 623.071, 623.121, 623.142, or 623.192.
 SECTION 71.  Section 623.0112, Transportation Code, is
 amended to read as follows:
 Sec. 623.0112.  ADDITIONAL ADMINISTRATIVE FEE. When a
 person applies for a permit under Section 623.011, the person must
 pay in addition to other fees an administrative fee adopted by board
 [department] rule in an amount not to exceed the direct and indirect
 cost to the department of:
 (1)  issuing a sticker under Section 623.011(d);
 (2)  distributing fees under Section 621.353; and
 (3)  notifying counties under Section 623.013.
 SECTION 72.  Subsection (b), Section 623.012,
 Transportation Code, is amended to read as follows:
 (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.
 SECTION 73.  Subsections (a) and (b), Section 623.016,
 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 74.  Subsection (a), Section 623.051,
 Transportation Code, is amended to read as follows:
 (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 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.
 SECTION 75.  Subsection (b), Section 623.052,
 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 76.  Subsection (a), Section 623.075,
 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 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 77.  Subsections (b) and (c), Section 623.076,
 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, in consultation with the 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 78.  Section 623.078, Transportation Code, is
 amended to read as follows:
 Sec. 623.078.  VEHICLE SUPERVISION FEE. (a)  Each applicant
 for a permit under this subchapter for a vehicle that is heavier
 than 200,000 pounds must also pay a vehicle supervision fee in an
 amount determined by the Texas Department of Transportation
 [department] and designed to recover the direct cost of providing
 safe transportation of the vehicle over the state highway system,
 including the cost of:
 (1)  bridge structural analysis;
 (2)  the monitoring of the trip process; and
 (3)  moving traffic control devices.
 (b)  The board [department] shall send each fee collected
 under Subsection (a) to the comptroller for deposit to the credit of
 the state highway fund.
 SECTION 79.  Subsection (a), Section 623.080,
 Transportation Code, is amended to read as follows:
 (a)  Except as provided by Subsection (b), a permit under
 this subchapter must include:
 (1)  the name of the applicant;
 (2)  the date of issuance;
 (3)  the signature of the director of the department
 [or of a division engineer];
 (4)  a statement of the kind of equipment to be
 transported over the highway, the weight and dimensions of the
 equipment, and the kind and weight of each commodity to be
 transported; and
 (5)  a statement of any condition on which the permit is
 issued.
 SECTION 80.  Subsection (f), Section 623.093,
 Transportation Code, is amended to read as follows:
 (f)  If an application for a permit to move a manufactured
 house is accompanied by a copy of a writ of possession issued by a
 court of competent jurisdiction, the applicant is not required to
 submit the written statement from the chief appraiser [set forth in
 Subsection (d)].
 SECTION 81.  Subsection (b), Section 623.096,
 Transportation Code, is amended to read as follows:
 (b)  The board, in consultation with the Texas Department of
 Transportation, [department] shall adopt rules concerning fees for
 each annual permit issued under Section 623.095(c) at a cost not to
 exceed $3,000.
 SECTION 82.  Subsection (e), Section 623.099,
 Transportation Code, is amended to read as follows:
 (e)  The Texas Department of Transportation [department]
 shall publish and annually revise a map or list of the bridges or
 overpasses that because of height or width require an escort flag
 vehicle to stop oncoming traffic while a manufactured house crosses
 the bridge or overpass.
 SECTION 83.  Subsections (b) and (c), Section 623.100,
 Transportation Code, are amended to read as follows:
 (b)  The Texas Department of Transportation [department] may
 limit the hours for travel on certain routes because of heavy
 traffic conditions.
 (c)  The Texas Department of Transportation [department]
 shall publish the limitation on movements prescribed by this
 section and the limitations adopted under Subsection (b) and shall
 make the publications available to the public. Each limitation
 adopted by the Texas Department of Transportation [department] must
 be made available to the public before it takes effect.
 SECTION 84.  Subsection (a), Section 623.126,
 Transportation Code, is amended to read as follows:
 (a)  A permit issued under this subchapter must:
 (1)  contain the name of the applicant;
 (2)  be dated and signed by the director of the
 department[, a division engineer,] or a designated agent;
 (3)  state the make and model of the portable building
 unit or units to be transported over the highways;
 (4)  state the make and model of the towing vehicle;
 (5)  state the combined length and width of the
 portable building unit or units and towing vehicle; and
 (6)  state each highway over which the portable
 building unit or units are to be moved.
 SECTION 85.  Subsection (a), Section 623.142,
 Transportation Code, is amended to read as follows:
 (a)  The department may, on application, issue a permit for
 the movement over a road or highway under the jurisdiction of the
 Texas Department of Transportation [department] of a vehicle that:
 (1)  is a piece of fixed-load mobile machinery or
 equipment used to service, clean out, or drill an oil well; and
 (2)  cannot comply with the restrictions set out in
 Subchapter C of Chapter 621 and Section 621.101.
 SECTION 86.  Sections 623.145 and 623.146, Transportation
 Code, are amended to read as follows:
 Sec. 623.145.  RULES; FORMS AND PROCEDURES; FEES. (a)  The
 board, in consultation with the commission, [Texas Transportation
 Commission] by rule shall provide for the issuance of permits under
 this subchapter. The rules must include each matter the board and
 commission determine [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
 commission.
 (b)  In adopting a rule or establishing a fee, the board and
 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.
 SECTION 87.  Subsections (a) and (b), Section 623.163,
 Transportation Code, are amended to read as follows:
 (a)  The owner of a vehicle used exclusively to transport
 solid waste with a tandem axle load heavier than 34,000 pounds shall
 before operating the vehicle on a public highway of this state file
 with the department a surety bond subject to the approval of the
 Texas Department of Transportation [department] in the principal
 amount set by the Texas Department of Transportation [department]
 not to exceed $15,000 for each vehicle.
 (b)  The bond must be conditioned that the owner of the
 vehicle will pay to the Texas Department of Transportation [state]
 and to any municipality in which the vehicle is operated on a
 municipal street, within the limit of the bond, any damages to a
 highway or municipal street caused by the operation of the vehicle.
 SECTION 88.  Subsection (a), Section 623.192,
 Transportation Code, is amended to read as follows:
 (a)  The department may, on application, issue a permit to a
 person to move over a road or highway under the jurisdiction of the
 Texas Department of Transportation [department] an unladen lift
 equipment motor vehicle that cannot comply with the restrictions
 set out in Subchapter C of Chapter 621 and Section 621.101.
 SECTION 89.  Sections 623.195 and 623.196, Transportation
 Code, are amended to read as follows:
 Sec. 623.195.  RULES; FORMS AND PROCEDURES; FEES.  (a)  The
 board, in consultation with the commission, [Texas Transportation
 Commission] by rule shall provide for the issuance of a permit under
 this subchapter. The rules must include each matter the board and
 the commission determine [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
 commission.
 (b)  In adopting a rule or establishing a fee, the board and
 the 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.
 SECTION 90.  Section 623.212, Transportation Code, is
 amended to read as follows:
 Sec. 623.212.  PERMITS BY PORT AUTHORITY. The commission
 [department] may authorize a port authority to issue permits for
 the movement of oversize or overweight vehicles carrying cargo on
 state highways located in counties contiguous to the Gulf of Mexico
 or a bay or inlet opening into the gulf and bordering the United
 Mexican States.
 SECTION 91.  Subsection (b), Section 623.215,
 Transportation Code, is amended to read as follows:
 (b)  A port authority shall report to the Texas Department of
 Transportation [department] all permits issued under this
 subchapter.
 SECTION 92.  Section 623.233, Transportation Code, is
 amended to read as follows:
 Sec. 623.233.  MAINTENANCE CONTRACTS. The district shall
 make payments to the Texas Department of Transportation
 [department] to provide funds for the maintenance of state highways
 subject to this subchapter.
 SECTION 93.  Subsection (b), Section 623.235,
 Transportation Code, is amended to read as follows:
 (b)  The district shall report to the Texas Department of
 Transportation [department] all permits issued under this
 subchapter.
 SECTION 94.  Section 623.253, Transportation Code, is
 amended to read as follows:
 Sec. 623.253.  MAINTENANCE CONTRACTS. The county shall make
 payments to the Texas Department of Transportation [department] to
 provide funds for the maintenance of state highways subject to this
 subchapter.
 SECTION 95.  Section 623.304, Transportation Code, is
 amended to read as follows:
 Sec. 623.304.  MAINTENANCE CONTRACTS. The port authority
 shall make payments to the Texas Department of Transportation
 [department] to provide funds for the maintenance of state highways
 subject to this subchapter.
 SECTION 96.  Subsection (c), Section 547.304,
 Transportation Code, is amended to read as follows:
 (c)  Except for Sections 547.323 and 547.324, a provision of
 this chapter that requires a vehicle to be equipped with lamps,
 reflectors, and lighting equipment does not apply to a mobile home
 if the mobile home:
 (1)  is moved under a permit issued by the Texas
 Department of Motor Vehicles [Transportation] under Subchapter D,
 Chapter 623; and
 (2)  is not moved at a time or under a condition
 specified by Section 547.302(a).
 SECTION 97.  Subsection (b), Section 1001.002,
 Transportation Code, is amended to read as follows:
 (b)  In addition to the other duties required of the Texas
 Department of Motor Vehicles, the department shall administer and
 enforce:
 (1)  Subtitle A;
 (2)  Chapters 621, 622, 623, 642, 643, 645, 646, and
 648; and
 (3)  Chapters 2301 and 2302, Occupations Code.
 SECTION 98.  Subsections (a), (b), and (c), Section
 1201.161, Occupations Code, are amended to read as follows:
 (a)  Notwithstanding any other statute or rule or ordinance,
 a licensed retailer or licensed installer is not required to obtain
 a permit, certificate, or license or pay a fee to transport
 manufactured housing to the place of installation except as
 required by the Texas Department of Motor Vehicles [Transportation]
 under Subchapter E, Chapter 623, Transportation Code.
 (b)  The department shall cooperate with the Texas
 Department of Motor Vehicles [Transportation] by providing current
 lists of licensed manufacturers, retailers, and installers.
 (c)  The Texas Department of Motor Vehicles [Transportation]
 shall send the department monthly:
 (1)  a copy of each permit issued in the preceding month
 for the movement of manufactured housing on the highways; or
 (2)  a list of the permits issued in the preceding month
 and the information on the permits.
 SECTION 99.  Section 201.0545, Subsection (h), Section
 223.201, and Section 370.314, Transportation Code, are repealed.
 SECTION 100.  (a)  A governmental act taken or a decision
 made by the Texas Department of Transportation and the Texas
 Transportation Commission under Subchapter E, Chapter 223,
 Transportation Code, before the effective date of this Act, to
 negotiate, execute, or otherwise enter into a comprehensive
 development agreement or facility agreement relating to the North
 Tarrant Express project is conclusively presumed, as of the date
 the act or decision occurred, to be valid and to have occurred in
 accordance with all applicable law.
 (b)  This Act does not validate any governmental act or
 decision that:
 (1)  is inconsistent with Section 223.201,
 Transportation Code, as amended by this Act, and Section 223.2012,
 Transportation Code, as added by this Act, relating to the North
 Tarrant Express project;
 (2)  was void at the time the act or decision occurred;
 (3)  violates the terms of federal law or a federal
 waiver; or
 (4)  was a misdemeanor or a felony under a statute of
 this state or the United States at the time the act or decision
 occurred.
 (c)  This Act does not apply to any matter that on the
 effective date of this Act:
 (1)  is involved in litigation if the litigation
 ultimately results in the matter being held invalid by a final court
 judgment; or
 (2)  has been held invalid by a final court judgment.
 SECTION 101.  This section and the sections of this Act that
 amend Section 223.201, Transportation Code, add Sections 223.2011
 and 223.2012, Transportation Code, repeal Subsection (h), Section
 223.201, Transportation Code, and provide transitional information
 related to those sections take effect immediately if this Act
 receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, those provisions take effect September 1, 2011.
 SECTION 102.  (a)  Except as otherwise provided by this Act,
 not later than January 1, 2012, the following are transferred from
 the Texas Department of Transportation to the Texas Department of
 Motor Vehicles:
 (1)  the powers, duties, functions, programs,
 activities, and rights of action of the Texas Department of
 Transportation relating to oversize and overweight vehicles under
 Chapters 621, 622, and 623, Transportation Code;
 (2)  any obligations, funds, negotiations, grants,
 memoranda of understanding, leases, rights, and contracts of the
 Texas Department of Transportation that are directly related to
 implementing a power, duty, function, program, activity, or right
 of action transferred under this subsection; and
 (3)  all personnel, furniture, computers, equipment,
 other property, records, and related materials in the custody of
 the Texas Department of Transportation that are related to a power,
 duty, function, program, activity, or right of action transferred
 under this subsection and all funds appropriated by the legislature
 for that power, duty, function, program, activity, or right of
 action.
 (b)  The Texas Department of Motor Vehicles shall continue
 any case or proceeding relating to oversize and overweight vehicles
 under Chapters 621, 622, and 623, Transportation Code, that was
 brought before the effective date of this Act in accordance with the
 law in effect on the date the case or proceeding was brought, and
 the former law is continued in effect for that purpose.
 (c)  A certificate, license, document, permit, registration,
 or other authorization issued by the Texas Department of
 Transportation relating to oversize and overweight vehicles under
 Chapters 621, 622, and 623, Transportation Code, 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.
 (d)  The unobligated and unexpended balance of any
 appropriations made to the Texas Department of Transportation in
 connection with or relating to oversize and overweight vehicles
 under Chapter 621, 622, or 623, Transportation Code, for the state
 fiscal biennium ending August 31, 2011, 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.
 (e)  The Texas Department of Transportation shall continue,
 as necessary, to perform the duties and functions that are being
 transferred to the Texas Department of Motor Vehicles under this
 Act until the transfer of agency duties and functions is complete.
 (f)  A rule or form adopted by the Texas Department of
 Transportation that relates to a power, duty, function, program,
 activity, or right of action transferred under Subsection (a) of
 this section is a rule or form of the Texas Department of Motor
 Vehicles and remains in effect until altered by the Texas
 Department of Motor Vehicles.
 (g)  A reference in law to the Texas Department of
 Transportation that relates to a power, duty, function, program,
 activity, or right of action transferred under Subsection (a) of
 this section means the Texas Department of Motor Vehicles.
 SECTION 103.  (a)  The Texas Department of Motor Vehicles
 may enter into a memorandum of understanding with a state agency,
 including the Texas Department of Transportation, if the board of
 the Texas Department of Motor Vehicles determines the memorandum is
 necessary or appropriate to implement the changes made by this Act
 to Chapters 621, 622, and 623, Transportation Code.
 (b)  The memorandum of understanding described by Subsection
 (a) of this section may:
 (1)  coordinate the Texas Department of Motor Vehicles'
 and the Texas Department of Transportation's information systems to
 allow for the sharing of information so each department may
 effectively and efficiently perform the functions and duties
 assigned to the department;
 (2)  provide for implementing the memorandum using
 existing personnel and resources from the Texas Department of Motor
 Vehicles and the Texas Department of Transportation;
 (3)  allow for the sharing of otherwise confidential
 information subject to the same confidentiality requirements and
 legal restrictions on access to the information that are imposed by
 law on the agency that originally obtained or collected the
 information;
 (4)  allow for the sharing of information without the
 consent of the person who is the subject of the information; and
 (5)  include an agreement for:
 (A)  the provision of office space, utilities, and
 other facility services;
 (B)  the need for full-time equivalent positions
 of the Texas Department of Transportation to provide support
 services in addition to the positions transferred to the Texas
 Department of Motor Vehicles under Subdivision (3), Subsection (a),
 Section 102 of this Act;
 (C)  support services; and
 (D)  the transfer of information technology as
 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.
 (c)  The Texas Department of Motor Vehicles and the Texas
 Department of Transportation may not impose, collect, or charge a
 fee in connection with the sharing of information under a
 memorandum of understanding entered into or revised under this
 section.
 SECTION 104.  Except as otherwise provided by this Act, this
 Act takes effect September 1, 2011.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 1420 passed the Senate on
 April 18, 2011, by the following vote:  Yeas 31, Nays 0;
 May 6, 2011, Senate refused to concur in House amendments and
 requested appointment of Conference Committee; May 17, 2011, House
 granted request of the Senate; May 28, 2011, Senate adopted
 Conference Committee Report by the following vote:  Yeas 31,
 Nays 0.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 1420 passed the House, with
 amendments, on May 2, 2011, by the following vote:  Yeas 121,
 Nays 24, one present not voting; May 17, 2011, House granted
 request of the Senate for appointment of Conference Committee;
 May 29, 2011, House adopted Conference Committee Report by the
 following vote:  Yeas 118, Nays 26, one present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor