85R11906 JRR-D By: Gonzales of Williamson H.B. No. 3955 A BILL TO BE ENTITLED AN ACT relating to the functions of the Texas Department of Transportation relating to transportation planning and projects. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 201.601(a-1) and (d), Transportation Code, are amended to read as follows: (a-1) The plan must: (1) contain specific and clearly defined transportation system strategies, long-term transportation goals for the state and measurable targets for each goal, and other related performance measures; (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. (d) In selecting transportation projects, the [The] department shall consider the transportation system strategies, goals and measurable targets, and other related performance measures established under Subsection (a-1)(1) [in selecting transportation projects]. SECTION 2. Section 201.6015, Transportation Code, is amended 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: (1) clearly reference the statewide transportation plan under Section 201.601; (2) include in the plan or policy effort the transportation system strategies, goals and measurable targets, and other related performance measures established under Section 201.601(a-1)(1); and (3) [and] specify how the plan or policy effort supports [or otherwise relates to] the specific goals established under Section 201.601(a-1)(1) [that section]. SECTION 3. Section 201.807, Transportation Code, is amended by amending Subsection (a) and adding Subsections (g) and (h) to read as follows: (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 district project portfolio [work program] required under Section 201.998. (g) The department shall: (1) conduct a comprehensive review of the project information reporting system; (2) in conducting the review required by Subdivision (1), incorporate feedback from internal and external users of the system and advice from the department office responsible for public involvement; and (3) develop a plan for implementing any needed improvements to the system. (h) The department shall conduct the review required by Subsection (g)(1) on a regular basis, as specified by commission rule. SECTION 4. Subchapter J, Chapter 201, Transportation Code, is amended by adding Section 201.8075 to read as follows: Sec. 201.8075. STATEWIDE TRANSPORTATION PLAN DASHBOARD. (a) In this section, "dashboard" means a web-based data visualization tool that provides an analysis and visual representation of key performance measures relevant to a particular objective. (b) The department shall develop and prominently display on the department's Internet website a dashboard that clearly communicates to the public: (1) the transportation system strategies, goals and measurable targets, and other related performance measures established under Section 201.601(a-1)(1); and (2) the department's progress, including trends over time, in meeting the strategies, goals and targets, and other related performance measures described by Subdivision (1). (c) The dashboard must be in a format that is easy to navigate. (d) The department shall: (1) regularly update the information displayed on the dashboard; and (2) publish on the department's Internet website the methodology and data used to determine the department's progress under Subsection (b)(2). SECTION 5. Section 201.808, Transportation Code, is amended by adding Subsection (i) to read as follows: (i) The department shall: (1) conduct a comprehensive analysis regarding the effect of funding allocations made to funding categories described by Section 201.991(b) and project selection decisions on accomplishing the goals described in the statewide transportation plan under Section 201.601; (2) provide the analysis to metropolitan planning organizations, the public, and each member of the commission for the purpose of informing deliberations on funding decisions for the unified transportation program under Section 201.991; (3) update the analysis as part of: (A) the department's annual update to the unified transportation program under Section 201.992 and any other formal update to that program; and (B) the evaluation and report required by Section 201.809; (4) promptly publish the analysis on the department's Internet website in its entirety and in summary form; and (5) publish the methodology and data used to create the analysis on the department's Internet website and make the methodology and data available to the metropolitan planning organizations, the public, and the commission under Subdivision (2). SECTION 6. Section 201.809(a), Transportation Code, is amended to read as follows: (a) The department annually shall evaluate and publish a report about the status of each transportation goal for this state. The department shall also promptly publish the report on the department's Internet website in summary form. 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; and (5) the analysis required by Section 201.808(i). SECTION 7. Section 201.991, Transportation Code, is amended by adding Subsections (b-1) and (e) and amending Subsection (d) to read as follows: (b-1) The commission by rule shall: (1) adopt a policy comprehensively explaining the department's approach to public involvement and transparency related to the unified transportation program; and (2) require the department to, at a minimum, make a report on any change to the unified transportation program available on the department's Internet website and provide the report to the commission in a public meeting, regardless of any rules adopted for public hearings and approvals. (d) In developing the rules required by Subsection (b) [this section], the commission shall collaborate with local transportation entities. (e) In developing the policy required by Subsection (b-1)(1), the commission shall collaborate with stakeholders. SECTION 8. Section 201.992(b), Transportation Code, is amended to read as follows: (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; and (4) the analysis required by Section 201.808(i). SECTION 9. Section 201.995, Transportation Code, is amended by adding Subsection (d) to read as follows: (d) In prioritizing and approving projects under Section 201.9991 that are included in the unified transportation program, the commission must first evaluate projects on strategic need and potential contribution toward meeting the transportation goals established under Section 201.601(a-1)(1). After conducting that initial evaluation, the commission may conduct a secondary evaluation based on other factors such as funding availability and project readiness. SECTION 10. Section 201.998, Transportation Code, is amended to read as follows: Sec. 201.998. DISTRICT PROJECT PORTFOLIOS [WORK PROGRAM]. (a) Each department district shall develop a consistently formatted project portfolio [work program] based on the unified transportation program covering a period of at least four years that contains all projects that the district proposes to implement during that period. (b) The department shall develop comprehensive performance measures for key steps in the project development process for projects included in each district's project portfolio. The department shall use the performance measures developed under this subsection to track and report whether each district is: (1) developing an appropriate mix of projects; and (2) on track to meet letting targets that are consistent with applicable department policy governing when a project should be bid on for a contract awarded by the department [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 conduct a review of project development activities in each district's project portfolio on a regular basis and use the review [use the work program] to[: [(1)] monitor and evaluate the performance of each [the] district[; and [(2) evaluate the performance of district employees]. (d) In conducting the review required by Subsection (c), the [The] department shall, when appropriate, seek input from key stakeholders such as local government project sponsors or metropolitan planning organizations [publish the work program in appropriate media and on the department's Internet website]. (e) The commission shall adopt rules as necessary to administer this section. (f) The commission shall adopt and regularly update rules: (1) governing the overall planning, review, and monitoring process created by this section; (2) specifying how planning and project stakeholders can become involved in the process described by Subdivision (1); and (3) requiring the department to regularly report results under this section to the commission and the public and specifying the method for reporting those results. (g) The commission shall consult a stakeholder group before adopting or updating rules under Subsection (f). SECTION 11. Section 201.9991(a), Transportation Code, is amended to read as follows: (a) The commission by rule shall prioritize and approve projects included in the statewide transportation plan under Section 201.601 or in the unified transportation program under Section 201.991 in order to provide financial assistance under this chapter. SECTION 12. Subchapter P, Chapter 201, Transportation Code, is amended by adding Section 201.9992 to read as follows: Sec. 201.9992. ROLES AND RESPONSIBILITIES OF DEPARTMENT AND METROPOLITAN PLANNING ORGANIZATIONS. (a) The commission shall adopt rules governing: (1) the alignment of the department's state and federal funding forecasts, including the annual funding forecast required by Section 201.993, with the funding forecasts of metropolitan planning organizations, including: (A) the funding forecasts used for long-term planning as described in Sections 201.620 and 472.035; and (B) the 10-year transportation plan required by Section 201.9911; (2) the alignment of the statewide project recommendation criteria developed by the department with the project recommendation criteria developed by metropolitan planning organizations that relate to statewide transportation goals, particularly for major mobility projects using a mix of several funding sources and selected by different entities; (3) the department's timelines and review process for the 10-year transportation plans required by Section 201.9911; (4) the department's process for allowing metropolitan planning organizations direct access to the department's information systems, software, and technical assistance for the purpose of accomplishing statewide transportation goals; and (5) the department's process for collaborating with metropolitan planning organizations to regularly evaluate the availability, consistency, and quality of data and other information needed to fully develop a more performance-based transportation planning and project selection system. (b) A rule adopted under Subsection (a)(3) must take into consideration a metropolitan planning organization's other deadlines and requirements in federal law. (c) The commission shall consult a stakeholder group before developing the rules required by Subsection (a). SECTION 13. Section 223.012, Transportation Code, is amended to read as follows: Sec. 223.012. CONTRACTOR PERFORMANCE. (a) The commission [department] shall adopt rules to: (1) establish a range of contract remedies to be included in all low-bid highway improvement contracts, including enforceable corrective action plans and criteria for prohibiting contractors with significant project completion delays from bidding on new projects, and develop a process and criteria for when to apply each contract remedy; (2) develop and implement a schedule for liquidated damages that accurately reflects the costs associated with project completion delays, including administrative and travel delays; and (3) develop a contractor performance evaluation process and an evaluation tool that: (A) allows for the [(2)] review of contractor bidding capacity to ensure that contractors meet each quality, safety, and timeliness standard established by the commission; and (B) contains criteria for modifying a contractor's bidding capacity for competitively bid highway improvement contracts when appropriate [(3) conduct a review to determine whether commission rules or state law should be changed to realize significant cost and time savings on state highway construction and maintenance projects]. (b) In developing the rules required by Subsection (a)(1), the commission must: (1) consult with industry contractors; and (2) consider contract remedies used by: (A) other state agencies; and (B) departments of transportation in other states [Not later than December 1, 1998, the department shall file a report with the governor, the lieutenant governor, and the speaker of the house of representatives containing: [(1) the results of the review conducted under Subsection (a)(3); and [(2) recommendations on legislation the commission determines is necessary to realize significant cost and time savings on state highway construction and maintenance]. (c) The rules adopted under Subsection (a)(2) must: (1) include criteria for identifying projects that have a significant impact on the traveling public; and (2) require the department to calculate project-specific liquidated damages for projects described by Subdivision (1) that reflect the true cost of travel delays. (d) In developing the evaluation tool required by Subsection (a)(3), the commission must consult with industry contractors. (e) The rules adopted under Subsection (a)(3) must: (1) provide for a process for contractors to appeal the contractors' evaluations; and (2) include criteria for the use of the evaluations by the department to address contractor performance problems. SECTION 14. (a) Not later than March 1, 2018, the Texas Department of Transportation shall: (1) complete a review and update of the long-term transportation goals contained in the statewide transportation plan under Section 201.601, Transportation Code, and make any changes to the statewide transportation plan that are necessary to implement the change in law made by this Act to Section 201.601, Transportation Code, including adopting specific and clearly defined transportation system strategies, long-term transportation goals for the state and measurable targets for each goal, and other related performance measures, to ensure that the department uses a single set of transportation goals in all of the department's transportation plans and policy efforts; (2) make any changes to each of the department's transportation plans and policy efforts that are necessary to implement the change in law made by this Act to Section 201.6015, Transportation Code; (3) develop the plan required by Section 201.807(g)(3), Transportation Code, as added by this Act; and (4) develop and publish on the department's Internet website the dashboard required by Section 201.8075, Transportation Code, as added by this Act. (b) Not later than September 1, 2018, the Texas Transportation Commission shall: (1) adopt the rules required by Sections 201.807(h), 201.991(b-1), 201.998(f), and 201.9992, Transportation Code, as added by this Act, and Section 223.012, Transportation Code, as amended by this Act; and (2) adopt or modify any rules necessary to implement the changes in law made by this Act to Sections 201.807, 201.991, and 201.998, Transportation Code. SECTION 15. This Act takes effect September 1, 2017.