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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the operations of and transportation planning and  | 
      
      
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        expenditures by the Texas Department of Transportation and local  | 
      
      
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        transportation entities. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  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, rural transportation plans, and unified  | 
      
      
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        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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        performing and operating; | 
      
      
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                     (2)  provide the department, legislature,  | 
      
      
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        stakeholders, and public with information to support decisions in a  | 
      
      
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        manner that is accessible and understandable to the public; | 
      
      
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                     (3)  assess the effectiveness and efficiency of  | 
      
      
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        transportation projects and service; 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)  environmental sustainability; | 
      
      
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                     (6)  system reliability; | 
      
      
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                     (7)  freight mobility; | 
      
      
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                     (8)  cost efficiency of the department's operations; | 
      
      
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                     (9)  project procurement, delivery, and final cost; and | 
      
      
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                     (10)  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 periodic  | 
      
      
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        reporting schedules for all performance metrics and measures  | 
      
      
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        required under this section. | 
      
      
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               SECTION 2.  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)  All local  | 
      
      
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        transportation entities in the state shall develop, adopt, and  | 
      
      
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        submit to the department guidelines governing the funding  | 
      
      
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        prioritization of the entities' transportation projects. | 
      
      
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               (b)  In developing guidelines under Subsection (a), a local  | 
      
      
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        transportation entity shall at a minimum consider: | 
      
      
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                     (1)  the time frame over which various types of  | 
      
      
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        projects are needed and developed; | 
      
      
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                     (2)  the readiness of projects considered for  | 
      
      
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        short-term and long-term funding opportunities; | 
      
      
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                     (3)  the viability and sustainability of a project,  | 
      
      
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        including whether the project is a comprehensive solution with a  | 
      
      
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        measurable benefit; | 
      
      
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                     (4)  local criteria determined by each metropolitan  | 
      
      
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        planning organization policy board that focus on local goals and  | 
      
      
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        objectives unique to each area; and | 
      
      
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                     (5)  all criteria established by the commission for  | 
      
      
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        prioritization of projects. | 
      
      
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               (c)  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 with  | 
      
      
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        emphasis given to projects already approved in a regional  | 
      
      
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        transportation plan. | 
      
      
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               (d)  Each local transportation entity and department  | 
      
      
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        district shall submit to the department the funding prioritization  | 
      
      
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        for 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  | 
      
      
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        the commission shall approve projects included in the statewide  | 
      
      
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        transportation improvement plan under Section 201.601 in order to  | 
      
      
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        provide financial assistance under this chapter. | 
      
      
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               (b)  The department shall establish and the commission shall  | 
      
      
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        approve a performance-based process for setting funding levels for  | 
      
      
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        the categories of projects in the department's unified  | 
      
      
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        transportation program. | 
      
      
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               (c)  The department shall establish and the commission shall  | 
      
      
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        approve a scoring system for prioritizing projects for which  | 
      
      
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        financial assistance is sought from the commission by local  | 
      
      
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        transportation entities. The criteria used to score projects must  | 
      
      
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        take into consideration the department's strategic goals as  | 
      
      
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        approved by the commission. The system must account for the diverse  | 
      
      
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        needs of the state so as to fairly allocate funding to all regions  | 
      
      
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        of the state. | 
      
      
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               (d)  The commission may make discretionary funding decisions  | 
      
      
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        for no more than 10 percent of the current biennial budget of the  | 
      
      
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        department. | 
      
      
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               (e)  In scoring projects, the department shall give priority  | 
      
      
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        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 3.  (a)  In this section: | 
      
      
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                     (1)  "Commission" means the Texas Transportation  | 
      
      
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        Commission. | 
      
      
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                     (2)  "Department" means the Texas Department of  | 
      
      
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        Transportation. | 
      
      
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               (b)  Not later than the earlier of 30 days after the  | 
      
      
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        effective date of this Act or September 1, 2015: | 
      
      
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                     (1)  the speaker of the house of representatives shall  | 
      
      
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        appoint nine members to a House Select Committee on Transportation  | 
      
      
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        Planning and designate one member as chair; and | 
      
      
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                     (2)  the lieutenant governor shall appoint nine members  | 
      
      
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        to a Senate Select Committee on Transportation Planning and  | 
      
      
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        designate one member as chair. | 
      
      
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               (c)  The committees established under this section may meet  | 
      
      
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        separately at the call of the chair of the committee or jointly at  | 
      
      
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        the call of both chairs. In joint meetings, the chairs shall act as  | 
      
      
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        joint chairs. | 
      
      
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               (d)  The committees established under this section, meeting  | 
      
      
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        separately or jointly, shall review, study, and evaluate: | 
      
      
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                     (1)  department projections regarding the revenue  | 
      
      
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        needed by the department to maintain current maintenance,  | 
      
      
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        congestion, and connectivity conditions; | 
      
      
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                     (2)  the development of funding categories, the  | 
      
      
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        allocation of funding to such categories by formula, project  | 
      
      
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        selection authority for each funding category, and the development  | 
      
      
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        of project selection criteria for commission, department, and  | 
      
      
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        district-selected projects; | 
      
      
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                     (3)  department rules and policies regarding the  | 
      
      
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        development and implementation of performance-based scoring and  | 
      
      
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        decision making for project prioritization and selection of  | 
      
      
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        commission, department, and district-selected projects; | 
      
      
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                     (4)  the use and utilization of alternative methods of  | 
      
      
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        financing that have been authorized by the legislature for  | 
      
      
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        projects; | 
      
      
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                     (5)  performance metrics and measurement tools used by  | 
      
      
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        the department to evaluate the performance of a department project  | 
      
      
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        or program; | 
      
      
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                     (6)  the department's collaboration with state elected  | 
      
      
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        officials, local governments, government trade associations,  | 
      
      
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        metropolitan planning organizations, regional mobility  | 
      
      
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        authorities, and other entities when adopting rules or formulating  | 
      
      
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        policies; and | 
      
      
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                     (7)  any proposed rule, policy, program, or plan of the  | 
      
      
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        commission or department of statewide significance. | 
      
      
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               (e)  Following consideration of the factors described by  | 
      
      
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        Subsection (d) of this section, the committees shall jointly adopt  | 
      
      
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        recommendations related to the reviewed subjects and shall, not  | 
      
      
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        later than November 1, 2016, provide to the legislature a written  | 
      
      
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        report of the committees' recommendations on the reviewed subjects. | 
      
      
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               (f)  The committees established under this section may  | 
      
      
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        exercise any power of a committee of their respective chambers and  | 
      
      
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        any powers of a joint committee. For the purposes of this section,  | 
      
      
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        the committees established under this section are considered a  | 
      
      
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        joint committee and the cost of operation of each committee may be  | 
      
      
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        borne in the same manner as the cost of a joint committee. The Texas  | 
      
      
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        Legislative Council may provide funding for the operations of the  | 
      
      
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        committees. To the extent not inconsistent with this section, the  | 
      
      
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        joint rules adopted by the 84th Legislature for the administration  | 
      
      
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        of joint interim legislative study committees apply to the  | 
      
      
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        committees established under this section. | 
      
      
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               (g)  Not later than September 1, 2015, the department shall  | 
      
      
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        submit an initial report to the select committees. The report shall  | 
      
      
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        provide information necessary for the select committees to review,  | 
      
      
        | 
           
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        study, and evaluate the factors described by Subsections (d)(1),  | 
      
      
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        (2), and (3) of this section.  Not later than November 1, 2015, the  | 
      
      
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        department shall submit to the select committees a preliminary  | 
      
      
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        report on the remaining factors described by Subsection (d) of this  | 
      
      
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        section. | 
      
      
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               (h)  The department shall submit reports to the select  | 
      
      
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        committees on any other matters not included in Subsection (d)  of  | 
      
      
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        this section as requested by the committees. | 
      
      
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               (i)  This section expires January 13, 2017. | 
      
      
        | 
           
			 | 
               SECTION 4.  Section 201.117, Transportation Code, is  | 
      
      
        | 
           
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        repealed. | 
      
      
        | 
           
			 | 
               SECTION 5.  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  | 
      
      
        | 
           
			 | 
        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. |