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