By: Pickett H.B. No. 13 A BILL TO BE ENTITLED AN ACT relating to the funding and operations of the Texas Department of Transportation and local transportation entities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 201.943(a) and (l), Transportation Code, are amended to read as follows: (a) Subject to Subsections (e), (f), [and] (g), and (l), the commission by order or resolution may issue obligations in the name and on behalf of the state and the department and may enter into credit agreements related to the obligations. The obligations may be issued in multiple series and issues from time to time in an aggregate amount not exceeding the maximum obligation amount. The obligations may be issued on and may have the terms and provisions the commission determines appropriate and in the interests of the state. The obligations may be issued as long-term obligations, short-term obligations, or both. The latest scheduled maturity of an issue or series of obligations may not exceed 30 years. (l) Obligations may not be issued under this section or Section 49-k, Article III, Texas Constitution, after August 31, 2015 [if the commission or the department requires that toll roads be included in a regional mobility plan in order for a local authority to receive an allocation from the fund]. This subsection expires August 31, 2017. SECTION 2. Section 222.003, Transportation Code, is amended by adding Subsections (l) and (m) to read as follows: (l ) Bonds or other public securities may not be issued under this section or Section 49-n, Article III, Texas Constitution, as proposed by H.J.R. 28, 78th Legislature, Regular Session, 2003, after August 31, 2015. This subsection expires August 31, 2017. (m) The commission may use any constitutionally allowable source of funding to supplant funding previously obligated under this section or Section 49-n, Article III, Texas Constitution, as proposed by H.J.R. 28, 78th Legislature, Regular Session, 2003. This subsection expires August 31, 2017. SECTION 3. Section 222.004, Transportation Code, is amended by adding Subsections (j) and (k) to read as follows: (j) Bonds may not be issued under this section or Section 49-p, Article III, Texas Constitution, after August 31, 2015. This subsection expires August 31, 2017. (k) The commission may use any constitutionally allowable source of funding to supplant funding previously obligated under this section or Section 49-p, Article III, Texas Constitution. This subsection expires August 1, 2017. SECTION 4. Section 201.809, Transportation Code, is amended by adding Subsections (e) through (j) to read as follows: (e) The department shall develop and implement, and the commission shall approve, a performance-based planning and programming process dedicated to providing the executive and legislative branches of government with indicators that quantify and qualify progress toward attaining all department goals and objectives established by the legislature and the commission. (f) The department shall develop and implement performance metrics and performance measures as part of: (1) the review of strategic planning in the statewide transportation plan, metropolitan transportation plans, rural transportation plans, and unified transportation program; (2) the evaluation of decision-making on projects selected for funding in the unified transportation program and statewide transportation improvement program; and (3) the evaluation of project delivery for projects in the department's letting schedule. (g) The department shall use and the commission shall review performance metrics and measures to: (1) assess how well the transportation system is operating; (2) provide the department, legislature, stakeholders, and public with information to support decisions; (3) assess the effectiveness and efficiency of transportation projects and service delivery; and (4) demonstrate transparency and accountability. (h) The department shall develop and implement, and the commission shall approve, specific performance metrics and measures for sustainable objectives, including: (1) congestion reduction; (2) safety enhancements; (3) expansion of economic opportunity; (4) preservation of the value of existing transportation assets; (5) cost efficiency of the department's operations; (6) project procurement, delivery, and final cost; and (7) enhancements in public participation in the infrastructure planning process. (i) The requirement for the department to develop and implement a performance-based planning and programming process does not replace or alter the requirement of the department to comply with the budgetary performance measures for each biennium as established in the General Appropriations Act. The department may not rely on its requirement to report budgetary performance measures as satisfying the requirements imposed under this section. (j) The department shall develop and implement monthly and annual reporting schedules for all performance metrics and measures required under this section. SECTION 5. Subchapter P, Chapter 201, Transportation Code, is amended by adding Sections 201.999 and 201.9991 to read as follows: Sec. 201.999. PRIORITIZATION OF PROJECTS BY LOCAL TRANSPORTATION ENTITIES AND DEPARTMENT DISTRICTS. (a) The department shall work with all local transportation entities in the state to develop and adopt uniform guidelines governing the funding prioritization of the entities' transportation projects. (b) The department shall recommend to the commission uniform guidelines to be adopted under Subsection (a) and implemented by all local transportation entities and department districts. (c) In making recommendations under Subsection (b), the department shall consider: (1) the time frame in which a project is needed; (2) the feasibility of a project, including the availability of rights-of-way, funding support, and the ability to plan, design, and construct the project in a reasonable period of time; (3) the viability of a project, including whether the project is a comprehensive solution with a measurable outcome; and (4) all criteria established by the commission for prioritization of projects. (d) In prioritizing projects, each local transportation entity and department district shall include projects that meet short-term and long-term needs of the entity's jurisdiction. (e) The commission shall by rule adopt uniform standards established under this section. (f) Using the uniform standards established under this section, each local transportation entity and department district shall submit to the department the funding prioritization for transportation projects in the entity's jurisdiction. Sec. 201.9991. PRIORITIZATION OF PROJECTS BY DEPARTMENT AND APPROVED BY COMMISSION. (a) The department shall prioritize and the commission shall approve projects included in the unified transportation program in order to provide financial assistance under this chapter. (b) The department shall establish and the commission shall approve an overall performance-based process for setting category funding levels in the department's unified transportation program. The department shall consider a zero-based budget approach to address safety, maintenance, congestion, connectivity, economic development, and other needs. (c) The department shall establish and the commission shall approve a point system for prioritization of projects for which financial assistance is sought from the commission. The project evaluation criteria must take into consideration the department's strategic goals as approved by the commission. The system must include a standard for the department to apply in determining how to take into account the diverse needs of the state so as to fairly allocate funding to all regions of the state. (d) The department may not recommend and the commission may not approve a deviation from the department's selection of projects for funding of more than 10 percent of the current biennial budget of the department. (e) In awarding points to projects, the department shall give priority to projects that: (1) address safety, maintenance, congestion mitigation, and connectivity; (2) provide assistance to urban and rural populations; (3) provide regional balance; (4) meet a high percentage of the infrastructure needs of a community; (5) have available funding; (6) are able to begin without significant delay; and (7) include public participation in the planning process and public support for the project. (f) In addition to criteria under Subsection (e), in prioritizing projects the department shall consider: (1) the local contribution to be made to construct the project; (2) the financial capacity of the entity responsible for the project to repay the obligation if the assistance is in the form of a loan; (3) the ability to timely leverage state financial support with local and federal funding; (4) whether there is an emergency need for the project; (5) whether all preliminary planning and design work associated with the project necessary to reasonably predict cost, construction period, and benefits of the project have been completed; (6) whether all rights-of-way and easements necessary to begin construction have been acquired or approved; (7) the start date for and certainty of the beginning of project construction; (8) the demonstrated or projected impact on the community; and (9) the priority given the project by the applicable local transportation entity under Section 201.999. SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.