81R3307 JTS-D
By: Rodriguez H.B. No. 650
A BILL TO BE ENTITLED
AN ACT
relating to the low-income vehicle repair assistance, retrofit, and
accelerated vehicle retirement program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 382.201, Health and Safety Code, is
amended by adding Subdivision (1-a) to read as follows:
(1-a) "Alternative fuel motor vehicle" means a motor
vehicle that operates on at least one alternative fuel, including:
(A) methanol, denatured ethanol, or another
alcohol, separately or in mixtures of 85 percent or more by volume,
or another percentage not less than 70 percent, as determined by
United States Department of Energy rule, with gasoline or other
fuels;
(B) compressed natural gas;
(C) liquefied natural gas;
(D) liquefied petroleum gas;
(E) hydrogen; and
(F) a rechargeable electric energy storage
system.
SECTION 2. Sections 382.209(d), (e), (i), and (j), Health
and Safety Code, are amended to read as follows:
(d) Subject to the availability of funds, a low-income
vehicle repair assistance, retrofit, and accelerated vehicle
retirement program established under this section shall provide
monetary or other compensatory assistance for:
(1) repairs directly related to bringing certain
vehicles that have failed a required emissions test into compliance
with emissions requirements;
(2) alternative transportation options, including a
replacement vehicle, after the retirement of [a replacement vehicle
or replacement assistance for] a vehicle that has failed a required
emissions test and for which the cost of repairs needed to bring the
vehicle into compliance is uneconomical; and
(3) installing retrofit equipment on vehicles that
have failed a required emissions test, if practically and
economically feasible, in lieu of or in combination with repairs
performed under Subdivision (1). The commission and the Department
of Public Safety of the State of Texas shall establish standards and
specifications for retrofit equipment that may be used under this
section.
(e) A vehicle is not eligible to participate in a low-income
vehicle repair assistance, retrofit, and accelerated vehicle
retirement program established under this section unless:
(1) the vehicle is capable of being operated;
(2) the registration of the vehicle:
(A) is current; and
(B) reflects that the vehicle has been registered
in the county implementing the program for the 12 months preceding
the application for participation in the program;
(3) the commissioners court of the county
administering the program determines that the vehicle meets the
eligibility criteria adopted by the commission, the Texas
Department of Transportation, and the Public Safety Commission;
(4) if the vehicle is to be repaired, the repair is
done by a repair facility recognized by the Department of Public
Safety, which may be an independent or private entity licensed by
the state; and
(5) if the vehicle is to be retired under this
subsection and Section 382.213, the replacement motor vehicle , if
any, is a qualifying motor vehicle.
(i) Notwithstanding the vehicle retirement [replacement]
requirements provided by Subsection (d)(2), the commission by rule
may provide monetary or other compensatory assistance under the
low-income vehicle repair assistance, retrofit, and accelerated
vehicle retirement program, subject to the availability of funds,
for the retirement [replacement] of a vehicle that meets the
following criteria:
(1) the vehicle is gasoline-powered and is at least 10
years old;
(2) the vehicle owner meets applicable financial
eligibility criteria;
(3) the vehicle meets the requirements provided by
Subsections (e)(1) and (2); and
(4) the vehicle has passed a Department of Public
Safety motor vehicle safety inspection or safety and emissions
inspection within the 15-month period before the application is
submitted.
(j) The commission may provide monetary or other
compensatory assistance under the low-income vehicle repair
assistance, retrofit, and accelerated vehicle retirement program
for a replacement motor vehicle or replacement assistance for a
pre-1996 model year replacement motor vehicle that passes the
required United States Environmental Protection Agency Start-Up
Acceleration Simulation Mode Standards emissions test but that
would have failed the United States Environmental Protection Agency
Final Acceleration Simulation Mode Standards emissions test or
failed to meet some other criterion determined by the commission;
provided, however, that a replacement motor vehicle under this
subsection must be a qualifying motor vehicle.
SECTION 3. Sections 382.210(a), (b), (d), and (e), Health
and Safety Code, are amended to read as follows:
(a) The commission by rule shall adopt guidelines to assist
a participating county in implementing a low-income vehicle repair
assistance, retrofit, and accelerated vehicle retirement program
authorized under Section 382.209. The guidelines at a minimum
shall recommend:
(1) a minimum and maximum amount for repair
assistance;
(2) a minimum and maximum amount toward the purchase
price of a replacement motor vehicle qualified for the accelerated
retirement program, based on vehicle type and model year, with the
maximum amount not to exceed:
(A) $3,000 for a replacement motor vehicle [car]
of the current model year or the previous five [three] model years,
except as provided by Paragraph (C);
(B) $3,000 for a replacement truck of the current
model year or the previous five [two] model years, except as
provided by Paragraph (C); and
(C) $3,500 for a replacement alternative fuel
motor vehicle or hybrid motor vehicle of the current model year or
the previous five model years [year];
(2-a) a minimum and maximum amount of assistance, not
to exceed $3,000, for a person whose vehicle is retired under the
accelerated retirement program to use for fuel-efficient or
low-emissions transportation options other than a replacement
motor vehicle, including:
(A) a bicycle, electric bicycle, or motor
scooter; and
(B) a pass or passes for use on a public transit
system;
(3) criteria for determining eligibility, taking into
account:
(A) the vehicle owner's income, which may not
exceed 300 percent of the federal poverty level;
(B) the fair market value of the vehicle; and
(C) any other relevant considerations;
(4) safeguards for preventing fraud in the repair,
purchase, or sale of a vehicle in the program; and
(5) procedures for determining the degree and amount
of repair assistance a vehicle is allowed, based on:
(A) the amount of money the vehicle owner has
spent on repairs;
(B) the vehicle owner's income; and
(C) any other relevant factors.
(b) A replacement motor vehicle described by Subsection
(a)(2) must:
(1) except as provided by Subsection (c), be a vehicle
in a class or category of vehicles that has been certified to meet
federal Tier 2, Bin 5 or a cleaner Bin certification under 40 C.F.R.
Section 86.1811-04, as published in the February 10, 2000, Federal
Register; and
(2) have a gross vehicle weight rating of less than
10,000 pounds[; and
[(3) be a vehicle the total cost of which does not
exceed $25,000].
(d) A participating county shall provide an electronic
means for distributing vehicle repair or retirement [replacement]
funds once all program criteria have been met with regard to the
repair or retirement [replacement]. The county shall ensure that
funds for repairs or motor vehicle replacement are transferred to a
participating dealer under this section not later than five
business days after the date the county receives proof of the sale
and any required administrative documents from the participating
dealer.
(e) In rules adopted under this section, the commission
shall require a mandatory procedure that:
(1) produces a document confirming that a person is
eligible to purchase a replacement motor vehicle in the manner
provided by this chapter, and the amount of money available to the
participating purchaser;
(2) provides that a person who seeks to purchase a
replacement motor vehicle in the manner provided by this chapter is
required to have the document required by Subdivision (1) before
the person enters into negotiation for a replacement motor vehicle
in the manner provided by this chapter; and
(3) provides that a participating dealer who relies on
a document issued as required by Subdivision (1) has no duty to
otherwise confirm the eligibility of a person to purchase a
replacement motor vehicle in the manner provided by this chapter.
SECTION 4. Sections 382.213(a), (b), and (i), Health and
Safety Code, are amended to read as follows:
(a) Except as provided by Subsection (c) and Subdivision (5)
of this subsection, a vehicle retired under an accelerated vehicle
retirement program authorized by Section 382.209 may not be resold
or reused in its entirety in this or another state. Subject to the
provisions of Subsection (i), the automobile dealer who takes
possession of the vehicle must submit to the program administrator
proof, in a manner adopted by the commission, that the vehicle has
been retired. The vehicle must be:
(1) destroyed;
(2) recycled;
(3) dismantled and its parts sold as used parts or used
in the program;
(4) placed in a storage facility of a program
established under Section 382.209 and subsequently destroyed,
recycled, or dismantled and its parts sold or used in the program;
or
(5) repaired, brought into compliance, and used as a
replacement motor vehicle under Section 382.209(d)(2).
(b) Not more than 10 percent of all vehicles eligible for
retirement under this section may be used as replacement motor
vehicles under Subsection (a)(5).
(i) Notwithstanding any other provision of this section,
and except as provided by this subsection, a dealer is in compliance
with this section and incurs no civil or criminal liability as a
result of the disposal of a retired [replaced] vehicle if the dealer
produces proof of transfer of the retired [replaced] vehicle by the
dealer to a dismantler. The defense provided by this subsection is
not available to a dealer who knowingly and intentionally conspires
with another person to violate this section.
SECTION 5. Section 382.219, Health and Safety Code, is
amended to read as follows:
Sec. 382.219. PURCHASE OF REPLACEMENT MOTOR VEHICLE;
AUTOMOBILE DEALERSHIPS. (a) An amount described by Section
382.210(a)(2) may be used as a down payment toward the purchase of a
replacement motor vehicle.
(b) An automobile dealer that participates in the
procedures and programs offered by this chapter must be located in
the state. No dealer is required to participate in the procedures
and programs provided by this chapter.
SECTION 6. Section 382.220(d), Health and Safety Code, is
amended to read as follows:
(d) Fees collected under Sections 382.202 and 382.302 may be
used, in an amount not to exceed $5 million per fiscal year, for
projects described by Subsection (b). The fees shall be made
available only to participating counties [participating in the
low-income vehicle repair assistance, retrofit, and accelerated
vehicle retirement programs created under Section 382.209 and only]
on a matching basis, whereby the commission provides money to a
county in the same amount that the county dedicates to a project
authorized by Subsection (b). If the county is not in an area that
receives federal Congestion Mitigation Air Quality funding to
support projects authorized by Subsection (b), the commission shall
provide three times the amount of money that the county dedicates to
a project under that subsection.
SECTION 7. Section 382.210(f), Health and Safety Code, is
repealed.
SECTION 8. This Act takes effect September 1, 2009.