81R12944 JD-F By: Quintanilla H.B. No. 3490 A BILL TO BE ENTITLED AN ACT relating to the administrative and criminal consequences of certain conduct committed by an applicant for or a holder of a motor vehicle inspection station certificate or an inspector certificate. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 548.405, Transportation Code, is amended by amending Subsections (a) and (c) and adding Subsection (a-1) to read as follows: (a) The department may deny a person's application for a certificate, revoke or suspend the certificate of a person, inspection station, or inspector, place on probation a person who holds a suspended certificate, or reprimand a person who holds a certificate if: (1) the station or inspector knowingly and intentionally conducts an inspection, fails to conduct an inspection, or issues a certificate: (A) in violation of this chapter or a rule adopted under this chapter; or (B) without complying with the requirements of this chapter or a rule adopted under this chapter; (2) the person, station, or inspector commits an offense under this chapter or violates this chapter or a rule adopted under this chapter; (3) the applicant or certificate holder does not meet the standards for certification under this chapter or a rule adopted under this chapter; (4) the station or inspector does not maintain the qualifications for certification or does not comply with a certification requirement under Subchapter G; (5) the certificate holder or the certificate holder's agent, employee, or representative commits an act or omission that would cause denial, revocation, or suspension of a certificate to an individual applicant or certificate holder; (6) the station or inspector does not pay a fee required by Subchapter H; or (7) the inspector or owner of an inspection station is convicted of a: (A) felony or Class A or Class B misdemeanor; (B) similar crime under the jurisdiction of another state or the federal government that is punishable to the same extent as a felony or a Class A or Class B misdemeanor in this state; or (C) crime under the jurisdiction of another state or the federal government that would be a felony or a Class A or Class B misdemeanor if the crime were committed in this state. (a-1) In this section, "intentionally" and "knowingly" have the meanings assigned by Section 6.03, Penal Code. (c) If the department suspends a certificate because of a violation of Subchapter F in which an inspector knowingly and intentionally used an exhaust emissions sample or diagnostic connector from a vehicle in the issuance of an inspection certificate for a different vehicle, the suspension must be for a period of not less than six months. The suspension may not be probated or deferred. SECTION 2. Section 548.407, Transportation Code, is amended by amending Subsections (g) and (l) and adding Subsection (m) to read as follows: (g) If the director receives a timely request under Subsection (f), the director shall provide the person with an opportunity for a hearing as soon as practicable. A hearing on a revocation or suspension under Subsection (d) that takes effect on receipt of the notice must be held not later than three working [14] days after the department receives the request for hearing. The revocation or suspension continues in effect until the hearing is completed if the hearing is continued beyond the three-working-day [14-day] period[: [(1) at the request of the inspector or inspection station; or [(2) on a finding of good cause by a judge, administrative law judge, or hearing officer]. (l) If an administrative law judge of the State Office of Administrative Hearings conducts a hearing under this section and the proposal for decision supports the position of the department, the proposal for decision may recommend a denial of an application or a revocation or suspension of a certificate [only]. The proposal may also [not] recommend a reprimand or a probated or otherwise deferred disposition of the denial, revocation, or suspension. If the administrative law judge makes a proposal for a decision to deny an application or to suspend or revoke a certificate, the administrative law judge shall include in the proposal a finding of the costs, fees, expenses, and reasonable and necessary attorney's fees the state incurred in bringing the proceeding. The director may adopt the finding for costs, fees, and expenses and make the finding a part of the final order entered in the proceeding. Proceeds collected from a finding made under this subsection shall be paid to the department. (m) If a proposal for decision under Subsection (l) does not recommend the denial of an application or the revocation or suspension of a certificate, the director may not deny the application or revoke or suspend the certificate. SECTION 3. Section 548.601(a), Transportation Code, is amended to read as follows: (a) A person, including an inspector or an inspection station, commits an offense if the person knowingly and intentionally: (1) issues an inspection certificate [with knowledge that the issuance is] in violation of this chapter or rules adopted under this chapter; (2) falsely or fraudulently represents to the owner or operator of a vehicle that equipment inspected or required to be inspected must be repaired, adjusted, or replaced for the vehicle to pass an inspection; (3) misrepresents: (A) material information in an application in violation of Section 548.402 or 548.403; or (B) information filed with the department under this chapter or as required by department rule; (4) issues an inspection certificate: (A) without authorization to issue the certificate; or (B) without inspecting the vehicle; (5) issues an inspection certificate for a vehicle with knowledge that the vehicle has not been repaired, adjusted, or corrected after an inspection has shown a repair, adjustment, or correction to be necessary; (6) [knowingly] issues an inspection certificate: (A) for a vehicle without conducting an inspection of each item required to be inspected; or (B) for a vehicle that is missing an item required to be inspected or that has an item required to be inspected that is not in compliance with state law or department rules; (7) refuses to allow a vehicle's owner to have a qualified person of the owner's choice make a required repair, adjustment, or correction; (8) charges for an inspection an amount greater than the authorized fee; or (9) performs an act prohibited by or fails to perform an act required by this chapter or a rule adopted under this chapter. SECTION 4. (a) The change in law made by this Act to Section 548.405, Transportation Code, that relates to the denial of an application for an inspection station certificate or an inspector certificate applies only to an application that is filed on or after the effective date of this Act. An application for an inspection station certificate or an inspector certificate filed before the effective date of this Act is covered by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose. (b) The change in law made by this Act to Section 548.405, Transportation Code, that relates to the revocation or suspension of an inspection station certificate or an inspector certificate applies only to a suspension or revocation for conduct committed on or after the effective date of this Act. A revocation or suspension of an inspection station certificate or an inspector certificate for conduct committed before the effective date of this Act is covered by the law in effect on the date the conduct was committed, and the former law is continued in effect for that purpose. (c) The change in law to Section 548.407, Transportation Code, made by this Act applies only to a hearing on the denial, revocation, or suspension of a certificate that is commenced on or after the effective date of this Act. A hearing that was commenced before the effective date of this Act is covered by the law in effect when the hearing was commenced, and the former law is continued in effect for that purpose. (d) The change in law to Section 548.601, Transportation Code, made by this Act applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date. SECTION 5. This Act takes effect September 1, 2009.