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Texas Sunset Advisory Commission SUN S ET ADVI S ORY COMMI ss ION FIN A L REPORT Texas Department of Transportation July 2009 Sunset Advisory Commission Representative Carl Isett, Chair Senator Glenn Hegar, Jr., Vice Chair Representative Dan Flynn Senator Robert F. Deuell, M.D. Representative Linda Harper-Brown Senator Craig Estes Representative Lois Kolkhorst Senator Juan “Chuy” Hinojosa Representative Ruth Jones McClendon Vacant* Ike Sugg, Public Member Charles McMahen, Public Member** * Senator Kim Brimer served on the Commission from December 2005 through December 2008. ** Charles McMahen was appointed to fill the unexpired term of Michael Stevens. Joey Longley Director In 1977, the Texas Legislature created the Sunset Advisory Commission to identify and eliminate waste, duplication, and inefficiency in government agencies. The 12-member Commission is a legislative body that reviews the policies and programs of more than 150 government agencies every 12 years. The Commission questions the need for each agency, looks for potential duplication of other public services or programs, and considers new and innovative changes to improve each agency’s operations and activities. The Commission seeks public input through hearings on every agency under Sunset review and recommends actions on each agency to the full Legislature. In most cases, agencies under Sunset review are automatically abolished unless legislation is enacted to continue them. TEXAS DEPARTMENT OF TRANSPORTATION SUNSET FINAL REPORT JULY 2009 Th is document is intended to compile all recommendations and action taken by the Sunset Advisory Commission and the Legislature for an agency under Sunset review. Th e following explains how the document is expanded and reissued to include responses from agency staff and members of the public, as well as action taken by the Sunset Commission and the Legislature in each step of the Sunset process. Sunset Staff Report – Contains all Sunset staff recommendations on an agency, including both statutory and management changes, developed after extensive evaluation of the agency. Hearing Material – Summarizes all responses from agency staff and members of the public to Sunset staff recommendations, as well as new policy issues raised for consideration by the Sunset Commission. Decision Material – Includes additional responses, testimony, or new policy issues raised during the public hearing for consideration by the Sunset Commission in its decision meeting on an agency. Commission Decisions – Contains the decisions of the Sunset Commission on staff recommendations and new policy issues. Statutory changes adopted by the Commission are presented to the Legislature in the agency’s Sunset bill. Final Report – Summarizes action taken by the Legislature on Sunset Commission recommendations and new provisions added by the Legislature to the agency’s Sunset bill. Staff Report – June 2008 Commission Decisions – January 2009 Final Report – July 2009 Table of Contents PAGE SUMMARY Staff Recommendations .......................................................................................... 1 Legislative Action ................................................................................................... 6-a ISSUES/RECOMMENDATIONS 1 Until Trust in the Texas Department of Transportation Is Restored, the State Cannot Move Forward to Eff ectively Meet Its Growing Transportation Needs .............................................................................................. 7 Commission Decision (page 20-n) Legislative Action (page 20-o) 2 Th e State’s Complicated Transportation Planning and Project Development Process Frustrates Understanding of How Important Decisions Are Made ............................................................................................... 21 Commission Decision (page 34-l) Legislative Action (page 34-l) 3 TxDOT Does Not Meet the High Expectations Placed on It to Ensure Consistent, Meaningful Public Involvement............................................... 35 Commission Decision (page 42-i) Legislative Action (page 42-j) 4 Elements of TxDOT’s Contracting Functions Lack Effi ciency and Could Expose the State to Unacceptable Levels of Risk. ........................................ 43 Commission Decision (page 60-j) Legislative Action (page 60-j) 5 Key Elements of TxDOT’s Regulation of Motor Vehicle Dealers, Salvage Vehicle Dealers, and Household Goods Carriers Do Not Conform to Commonly Applied Licensing Practices ............................................. 61 Commission Decision (page 70-g) Legislative Action (page 70-g) 6 Key Elements of TxDOT’s Regulation of Outdoor Advertising Do Not Conform to Commonly Applied Licensing Practices ............................... 71 Commission Decision (page 78-g) Legislative Action (page 78-g) PAGE ACROSS-THE-BOARD RECOMMENDATIONS (ATBS) ................................................................................................................................ 79 AGENCY INFORMATION ................................................................................................................................ 81 APPENDICES Appendix A Examples of Other State Transportation Evaluation and Reporting Systems................................................................. 109 Appendix B Equal Employment Opportunity Statistics .................................. 117 Appendix C TxDOT Expenditures by Goal and Strategy ............................... 121 Appendix D Historically Underutilized Businesses Statistics ........................... 123 Appendix E 2009 – 2019 Unifi ed Transportation Program.............................. 127 Appendix F Regional Mobility Authorities in Texas ....................................... 129 Appendix G TxDOT-Awarded Comprehensive Development Agreements .................................................................................. 131 Appendix H Potential Toll Projects Identifi ed by TxDOT ............................... 133 Appendix I Pass-Th rough Financing Agreements Authorized by TxDOT ................................................................ 139 Appendix J Construction and Maintenance Contract Awards by TxDOT District ...................................................................... 141 Appendix K Road Condition Assessment Systems .......................................... 143 Appendix L Staff Review Activities ................................................................. 145 NEW ISSUES ................................................................................................................................ 147 Commission Decision (page 166) Legislative Action (page 168) PROVISIONS ADDED BY LEGISLATURE ................................................................................................................................ 175 SUMMARY Summary Th e Sunset review of the Texas Department of Transportation (TxDOT) occurred against a backdrop of distrust and frustration with the Department and the demand for more transparency, accountability, and responsiveness. Many expressed concerns that TxDOT was “out of control,” advancing its own agenda against objections of both the Legislature and the public. Sunset staff found that this atmosphere of distrust permeated most of TxDOT’s actions and determined that it could not be an eff ective state transportation agency if trust and confi dence were not restored. Signifi cant changes are needed to begin this restoration; tweaking the status quo is simply not enough. Control over transportation Th is report proposes decisive action to address TxDOT’s policy needs to return to the problems by establishing what is in eff ect a four-year Legislature, where it belongs. “legislative conservatorship” to return control over transportation policy to the Legislature, where it belongs. Th e recommendations in this report would strengthen the Legislature’s position in overseeing the Department and help to restore trust and confi dence in TxDOT by requiring the following changes in statute: achieve greater accountability under the oversight of a single Commissioner of Transportation; enhance the Legislature’s role through a Transportation Legislative Oversight Committee; provide better access to independent transportation information and research; increase transparency of TxDOT’s transportation planning and project development process; improve TxDOT’s public involvement eff orts; and make the Department’s contracting functions more accountable, particularly its development of comprehensive development agreements. Th e short four-year Sunset date would allow the Legislature to consider whether these changes have resulted in a more responsive, accountable, and transparent TxDOT and, if not, what additional changes might be required. Th ese recommendations present an opportunity for more comprehensive discussions and valuable deliberations by the Sunset Commission and the Legislature about the governance, organization, funding, and operations of TxDOT. Th ese discussions should also include information from the other examinations being conducted by the State Auditor, several interim committees, and the Legislative Study Committee on Private Participation in Toll Projects. A summary of Sunset staff recommendations on TxDOT follows as a starting point for these discussions. Sunset Final Report Texas Department of Transportation July 2009 Summary 1 Issues and Recommendations Issue 1 Until Trust in the Texas Department of Transportation Is Restored, the State Cannot Move Forward to Effectively Meet Its Growing Transportation
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