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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | 
      
        |  | relating to categories of and funding allocation for transportation | 
      
        |  | projects by the Texas Department of Transportation and local | 
      
        |  | transportation entities. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Subchapter P, Chapter 201, Transportation Code, | 
      
        |  | is amended by adding Sections 201.9901 and 201.9902 to read as | 
      
        |  | follows: | 
      
        |  | Sec. 201.9901.  DEFINITIONS.  In this subchapter: | 
      
        |  | (1)  "Planning organization" means: | 
      
        |  | (A)  a metropolitan planning organization; or | 
      
        |  | (B)  for an area that is not within the boundaries | 
      
        |  | of a metropolitan planning organization, the department district | 
      
        |  | that serves the area. | 
      
        |  | (2)  "Project" means a connectivity or new capacity | 
      
        |  | roadway project in the region of a planning organization.  The term | 
      
        |  | does not include a safety project, bridge project, federal | 
      
        |  | discretionary project, maintenance project, or preservation | 
      
        |  | project. | 
      
        |  | (3)  "Region" means the area for which a planning | 
      
        |  | organization develops plans under this subchapter. | 
      
        |  | (4)  "Transportation official" means an official in a | 
      
        |  | political subdivision who has responsibility for planning and | 
      
        |  | implementation of transportation projects. | 
      
        |  | Sec. 201.9902.  UPDATE TO TRANSPORTATION FUNDING CATEGORIES | 
      
        |  | AND ALLOCATION FORMULAS.  (a)  Not later than October 1, 2015, the | 
      
        |  | commission shall initiate a process to review the categories and | 
      
        |  | formulas adopted under Sections 201.991(b)(2) and 201.996. | 
      
        |  | (b)  The review process must include an effort by the | 
      
        |  | department to seek the collective input of all planning | 
      
        |  | organizations in the state.  The department shall convene meetings | 
      
        |  | as necessary to facilitate discussions among planning | 
      
        |  | organizations that will result in a consensus recommendation among | 
      
        |  | a majority of the planning organizations as to updated funding | 
      
        |  | categories and funding allocation formulas. | 
      
        |  | (c)  Not later than May 1, 2016, the commission shall adopt | 
      
        |  | rules implementing updated funding categories and funding | 
      
        |  | allocation formulas.  To the extent that the adopted categories or | 
      
        |  | funding allocation formulas differ from the consensus | 
      
        |  | recommendations of the planning organizations, the commission must | 
      
        |  | provide a detailed written explanation for the differences.  The | 
      
        |  | explanation must be made available on the department's Internet | 
      
        |  | website. | 
      
        |  | (d)  This section expires September 1, 2017. | 
      
        |  | SECTION 2.  Subchapter P, Chapter 201, Transportation Code, | 
      
        |  | is amended by adding Sections 201.9911, 201.9921, 201.9931, and | 
      
        |  | 201.9932 to read as follows: | 
      
        |  | Sec. 201.9911.  PLANNING ORGANIZATION 10-YEAR PLAN.  (a) | 
      
        |  | Each planning organization shall develop a 10-year transportation | 
      
        |  | plan for the use of the funding allocated to the region.  The | 
      
        |  | department shall assist the planning organizations by providing in | 
      
        |  | a timely manner such information as is reasonably requested by the | 
      
        |  | planning organizations. | 
      
        |  | (b)  The plan must identify the items described by Section | 
      
        |  | 201.9921(b) as applicable to the planning organization and the | 
      
        |  | funding of transportation projects in the region. | 
      
        |  | (c)  The first four years of the plan shall be developed to | 
      
        |  | meet the transportation improvement plan requirements of 23 U.S.C. | 
      
        |  | Section 134 or 135, as applicable. | 
      
        |  | (d)  For an area that is not within the boundaries of a | 
      
        |  | metropolitan planning organization, the department district shall | 
      
        |  | develop the 10-year transportation plan with input from municipal | 
      
        |  | and county elected officials and transportation officials in the | 
      
        |  | region. | 
      
        |  | Sec. 201.9921.  TEN-YEAR CASH FLOW PROJECTION.  (a)  Not | 
      
        |  | later than September 1 of each odd-numbered year, the department's | 
      
        |  | chief financial officer shall prepare and publish a cash flow | 
      
        |  | forecast for a period of not less than 10 years. | 
      
        |  | (b)  The forecast must identify: | 
      
        |  | (1)  the aggregate amount of all sources of funding | 
      
        |  | available for eligible transportation projects; | 
      
        |  | (2)  the amount previously committed to eligible | 
      
        |  | transportation projects based on actions of the commission; | 
      
        |  | (3)  the amount not committed to projects but that the | 
      
        |  | department anticipates allocating during the forecast period | 
      
        |  | through formulas adopted under Section 201.996; and | 
      
        |  | (4)  the sources of all funds projected to be available | 
      
        |  | during the forecast period, including bond proceeds, and an | 
      
        |  | estimation of debt service payments associated with the bond | 
      
        |  | proceeds. | 
      
        |  | (c)  The first two years of the forecast must be based on the | 
      
        |  | appropriation of funds in the General Appropriations Act for the | 
      
        |  | department for that biennium. | 
      
        |  | Sec. 201.9931.  PROJECT RECOMMENDATION AND PRIORITIZATION. | 
      
        |  | (a)  Each planning organization shall recommend projects in its | 
      
        |  | region and prioritize them using the criteria developed under | 
      
        |  | Section 201.9932 and in accordance with 23 U.S.C. Section 135. | 
      
        |  | (b)  For an area not located within the boundaries of a | 
      
        |  | metropolitan planning organization, the applicable department | 
      
        |  | district shall recommend projects and prioritize them with input | 
      
        |  | from municipal and county elected officials and transportation | 
      
        |  | officials using the criteria developed under Section 201.9932 and | 
      
        |  | in accordance with 23 U.S.C. Section 135. | 
      
        |  | (c)  The department shall compile the project | 
      
        |  | recommendations of the planning organizations to develop the | 
      
        |  | statewide transportation plan in accordance with 23 U.S.C. Section | 
      
        |  | 135. | 
      
        |  | Sec. 201.9932.  PROJECT RECOMMENDATION CRITERIA.  Each | 
      
        |  | planning organization shall develop its own project recommendation | 
      
        |  | criteria, which must include consideration of: | 
      
        |  | (1)  projected improvements to congestion and safety; | 
      
        |  | (2)  projected effects on economic development | 
      
        |  | opportunities for residents of the region; | 
      
        |  | (3)  available funding; | 
      
        |  | (4)  effects on the environment, including air quality; | 
      
        |  | (5)  socioeconomic effects, including | 
      
        |  | disproportionately high and adverse health or environmental | 
      
        |  | effects on minority or low-income neighborhoods; and | 
      
        |  | (6)  any other factors considered appropriate by the | 
      
        |  | planning organization, including local criteria that focus on | 
      
        |  | objectives unique to the organization's jurisdiction. | 
      
        |  | SECTION 3.  Section 201.996, Transportation Code, is amended | 
      
        |  | by adding Subsection (d) to read as follows: | 
      
        |  | (d)  The commission may not consider transferring funds | 
      
        |  | between categories by any method outside the established formulas | 
      
        |  | or allocating funds subject to the discretion of the commission | 
      
        |  | unless: | 
      
        |  | (1)  the commission considers the transfer or | 
      
        |  | allocation at a regularly scheduled commission meeting; and | 
      
        |  | (2)  the department presents to the commission a | 
      
        |  | written explanation of the transfer, including the need and | 
      
        |  | justification for the deviation from the formula allocation or use | 
      
        |  | of discretionary funds, at a regularly scheduled commission meeting | 
      
        |  | held in the month before the meeting described by Subdivision (1). | 
      
        |  | SECTION 4.  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. | 
      
        |  |  | 
      
        |  | * * * * * |