Texas 2011 - 82nd Regular

Texas House Bill HB3296 Latest Draft

Bill / Introduced Version

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                            82R14372 T
 By: Harper-Brown H.B. No. 3296


 A BILL TO BE ENTITLED
 AN ACT
 relating to transferring the motor vehicle inspection program from
 the Texas Department of Public Safety to the Texas Department of
 Motor Vehicles.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subchapter G, Chapter 382, Health and Safety
 Code Code, is amended by amending Section 382.201 to read as
 follows:
 Sec. 382.201.  DEFINITIONS. In this subchapter:
 (1)  "Affected county" means a county with a motor
 vehicle emissions inspection and maintenance program established
 under Section 548.301, Transportation Code.
 (2)  "Commercial vehicle" means a vehicle that is owned
 or leased in the regular course of business of a commercial or
 business entity.
 (3)  "Department" means the Texas Department of Motor
 Vehicles
 (4)(3)  "Fleet vehicle" means a motor vehicle
 operated as one of a group that consists of more than 10 motor
 vehicles and that is owned and operated by a public or commercial
 entity or by a private entity other than a single household.
 (5)(4)  "Participating county" means an affected
 county in which the commissioners court by resolution has chosen to
 implement a low-income vehicle repair assistance, retrofit, and
 accelerated vehicle retirement program authorized by Section
 382.209.
 (6)(5)  "Retrofit" means to equip, or the
 equipping of, an engine or an exhaust or fuel system with new,
 emissions-reducing parts or equipment designed to reduce air
 emissions and improve air quality, after the manufacture of the
 original engine or exhaust or fuel system, so long as the parts or
 equipment allow the vehicle to meet or exceed state and federal air
 emissions reduction standards.
 (7)(6)  "Retrofit equipment" means
 emissions-reducing equipment designed to reduce air emissions and
 improve air quality that is installed after the manufacture of the
 original engine or exhaust or fuel system.
 (8)(7)  "Vehicle" includes a fleet vehicle.
 SECTION 2.  Section 382.202, Health and Safety Code Code, is
 amended to read as follows:
 Sec. 382.202.  VEHICLE EMISSIONS INSPECTION AND MAINTENANCE
 PROGRAM. (a) The commission by resolution may request the
 department Public Safety Commission to establish a vehicle
 emissions inspection and maintenance program under Subchapter F,
 Chapter 548, Transportation Code, in accordance with this section
 and rules adopted under this section. The commission by rule may
 establish, implement, and administer a program requiring
 emissions-related inspections of motor vehicles to be performed at
 inspection facilities consistent with the requirements of the
 federal Clean Air Act (42 U.S.C. Section 7401 et seq.) and its
 subsequent amendments.
 (b)  The commission by rule may require emissions-related
 inspection and maintenance of land vehicles, including testing
 exhaust emissions, examining emission control devices and systems,
 verifying compliance with applicable standards, and other
 requirements as provided by federal law or regulation.
 (c)  If the program is established under this section, the
 commission:
 (1)  shall adopt vehicle emissions inspection and
 maintenance requirements for certain areas as required by federal
 law or regulation; and
 (2)  shall adopt vehicle emissions inspection and
 maintenance requirements for counties not subject to a specific
 federal requirement in response to a formal request by resolutions
 adopted by the county and the most populous municipality within the
 county according to the most recent federal decennial census.
 (d)  On adoption of a resolution by the commission and after
 proper notice, the department Department of Public Safety of the
 State of Texas shall implement a system that requires, as a
 condition of obtaining an electronic inspection authorization a
 safety inspection certificate issued under Subchapter C, Chapter
 548, Transportation Code, in a county that is included in a vehicle
 emissions inspection and maintenance program under Subchapter F of
 that chapter, that the vehicle, unless the vehicle is not covered by
 the system, be annually or biennially inspected under the vehicle
 emissions inspection and maintenance program as required by the
 state's air quality state implementation plan. The department
 Department of Public Safety shall implement such a system when it is
 required by any provision of federal or state law, including any
 provision of the state's air quality state implementation plan.
 (e)  The department and the commission, at the time of
 vehicle registration or reregistration, commission may assess fees
 for vehicle emissions-related inspections performed at inspection
 or reinspection facilities authorized and licensed by the
 department commission in amounts reasonably necessary to recover
 the costs of developing, administering, evaluating, and enforcing
 the vehicle emissions inspection and maintenance program. If the
 program relies on privately operated or contractor-operated
 inspection or reinspection stations, an appropriate portion of the
 fee as determined by department commission rule may be retained by
 the station owner, contractor, or operator to recover the cost of
 performing the inspections and provide for a reasonable margin of
 profit. Any portion of the fee collected by the commission is a
 Clean Air Act fee under Section 382.0622.
 (f)  The department commission:
 (1)  shall, no less frequently than biennially, review
 the fee established under Subsection (e); and
 (2)     may use part of the fee collected under Subsection
 (e) to provide incentives, including financial incentives, for
 participation in the testing network to ensure availability of an
 adequate number of testing stations.
 (g)  The department commission shall:
 (1)  use part of the fee collected under Subsection (e)
 to fund low-income vehicle repair assistance, retrofit, and
 accelerated vehicle retirement programs created under Section
 382.209; and
 (2)  to the extent practicable, distribute available
 funding created under Subsection (e) to participating counties in
 reasonable proportion to the amount of fees collected under
 Subsection (e) in those counties or in the regions in which those
 counties are located.
 (h)  Regardless of whether different tests are used for
 different vehicles as determined under Section 382.205, the
 department commission may:
 (1)  set fees assessed under Subsection (e) at the same
 rate for each vehicle in a county or region; and
 (2)  set different fees for different counties or
 regions.
 (i)  The commission shall examine the efficacy of annually
 inspecting diesel vehicles for compliance with applicable federal
 emission standards, compliance with an opacity or other
 emissions-related standard established by commission rule, or both
 and shall implement that inspection program if the commission
 determines the program would minimize emissions. For purposes of
 this subsection, a diesel engine not used in a vehicle registered
 for use on public highways is not a diesel vehicle.
 (j)  The commission may not establish, before January 1,
 2004, vehicle fuel content standards to provide for vehicle fuel
 content for clean motor vehicle fuels for any area of the state that
 are more stringent or restrictive than those standards promulgated
 by the United States Environmental Protection Agency applicable to
 that area except as provided in Subsection (o) unless the fuel is
 specifically authorized by the legislature.
 (k)  The commission by rule may establish classes of vehicles
 that are exempt from vehicle emissions inspections and by rule may
 establish procedures to allow and review petitions for the
 exemption of individual vehicles, according to criteria
 established by commission rule. Rules adopted by the commission
 under this subsection must be consistent with federal law. The
 department commission by rule may establish fees to recover the
 costs of administering this subsection. Fees collected under this
 subsection shall be deposited to the credit of the clean air
 account, an account in the general revenue fund, and may be used
 only for the purposes of this section.
 (l)  Except as provided by this subsection, a person who
 sells or transfers ownership of a motor vehicle for which an
 electronic inspection authorization a vehicle emissions inspection
 certificate has been issued is not liable for the cost of emission
 control system repairs that are required for the vehicle
 subsequently to receive an electronic inspection authorization
 emissions inspection certificate. This subsection does not apply
 to repairs that are required because emission control equipment or
 devices on the vehicle were removed or tampered with before the sale
 or transfer of the vehicle.
 (m)  The department commission may conduct audits to
 determine compliance with this section.
 (n)  The department commission may suspend the emissions
 inspection program as it applies to pre-1996 vehicles in an
 affected county if:
 (1)  the department certifies that the number of
 pre-1996 vehicles in the county subject to the program is 20 percent
 or less of the number of those vehicles that were in the county on
 September 1, 2001; and
 (2)  an alternative testing methodology that meets or
 exceeds United States Environmental Protection Agency requirements
 is available.
 (o)  The commission may not require the distribution of Texas
 low-emission diesel as described in revisions to the State
 Implementation Plan for the control of ozone air pollution prior to
 February 1, 2005.
 (p)  The commission may consider, as an alternative method of
 compliance with Subsection (o), fuels to achieve equivalent
 emissions reductions.
 (q)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 262, Sec.
 1.10(2), eff. June 8, 2007.
 (r)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 262, Sec.
 1.10(2), eff. June 8, 2007.
 SECTION 3.  Section 382.203 (c), Health and Safety Code
 Code, is amended to read as follows: (c)  The department
 Department of Public Safety of the State of Texas by rule may waive
 program requirements, in accordance with standards adopted by the
 commission, for certain vehicles and vehicle owners, including:
 (1)  the registered owner of a vehicle who cannot
 afford to comply with the program, based on reasonable income
 standards;
 (2)  a vehicle that cannot be brought into compliance
 with emissions standards by performing repairs;
 (3)  a vehicle:
 (A)  on which at least $100 has been spent to bring
 the vehicle into compliance; and
 (B)  that the department:
 (i)  can verify was driven fewer than 5,000
 miles since the last safety inspection; and
 (ii)  reasonably determines will be driven
 fewer than 5,000 miles during the period before the next safety
 inspection is required; and
 (4)  a vehicle for which parts are not readily
 available.
 SECTION 4.  Section 382.204 (a), Health and Safety Code
 Code, is amended to read as follows: (a) The commission and the
 department Department of Public Safety of the State of Texas
 jointly shall develop a program component for enforcing vehicle
 emissions testing and standards by use of remote or automatic
 emissions detection and analysis equipment.
 SECTION 5.  Section 382.205, Health and Safety Code Code, is
 amended to read as follows:
 Sec. 382.205.  INSPECTION EQUIPMENT AND PROCEDURES. (a)
 The department commission by rule may adopt:
 (1)  standards and specifications for motor vehicle
 emissions testing equipment;
 (2)  recordkeeping and reporting procedures; and
 (3)  measurable emissions standards a vehicle must meet
 to pass the inspection.
 (b)  In adopting standards and specifications under
 Subsection (a), the department commission may require different
 types of tests for different vehicle models.
 (c)  In consultation with the Department of Public Safety of
 the State of Texas, the commission The department may contract with
 one or more private entities to provide testing equipment,
 training, and related services to inspection stations in exchange
 for part of the testing fee. A contract under this subsection may
 apply to one specified area of the state or to the entire state. The
 department commission at least once during each year shall review
 each contract entered into under this subsection to determine
 whether the contracting entity is performing satisfactorily under
 the terms of the contract. Immediately after completing the
 review, the department commission shall prepare a report
 summarizing the review and send a copy of the report to the speaker
 of the house of representatives, the lieutenant governor, and the
 governor.
 (d)  The department Department of Public Safety of the State
 of Texas by rule shall adopt:
 (1)  testing procedures in accordance with motor
 vehicle emissions testing equipment specifications; and
 (2)  procedures for issuing or denying an electronic
 inspection authorization emissions inspection certificate.
 (e)  The commission and the department Department of Public
 Safety of the State of Texas by joint rule may adopt procedures to
 encourage a stable private market for providing emissions testing
 to the public in all areas of an affected county, including:
 (1)  allowing facilities to perform one or more types
 of emissions tests; and
 (2)  any other measure the commission and the
 department Department of Public Safety consider appropriate.
 (f)  Rules and procedures under this section must ensure that
 approved repair facilities participating in a low-income vehicle
 repair assistance, retrofit, and accelerated vehicle retirement
 program established under Section 382.209 have access to adequate
 testing equipment.
 (g)  Subject to Subsection (h), the commission and the
 department Department of Public Safety of the State of Texas by rule
 may allow alternative vehicle emissions testing if:
 (1)  the technology provides accurate and reliable
 results;
 (2)  the technology is widely and readily available to
 persons interested in performing alternative vehicle emissions
 testing; and
 (3)  the use of alternative testing is not likely to
 substantially affect federal approval of the state's air quality
 state implementation plan.
 (h)  A rule adopted under Subsection (g) may not be more
 restrictive than federal regulations governing vehicle emissions
 testing.
 SECTION 6.  Section 382.206, Health and Safety Code Code, is
 amended to read as follows: (a) The commission and the
 Department of Public Safety of the State of Texas may collect
 inspection and maintenance information derived from the emissions
 inspection and maintenance program, including:
 (1)  inspection results;
 (2)  inspection station information;
 (3)  information regarding vehicles operated on
 federal facilities;
 (4)  vehicle registration information; and
 (5)  other data the United States Environmental
 Protection Agency requires.
 (b)  The department commission shall:
 (1)  report the information to the United States
 Environmental Protection Agency; and
 (2)  compare the information on inspection results with
 registration information for enforcement purposes.
 SECTION 7.  Section 382.207, Health and Safety Code Code, is
 amended to read as follows:
 Sec. 382.207.  INSPECTION STATIONS; QUALITY CONTROL AUDITS.
 (a) The Department of Public Safety of the State of Texas by rule
 shall adopt standards and procedures for establishing vehicle
 emissions inspection stations authorized and licensed by the state.
 (b)  A vehicle emissions inspection may be performed at a
 decentralized independent inspection station or at a centralized
 inspection facility operated or licensed by the state. In
 developing the program for vehicle emissions inspections, the
 Department of Public Safety shall make all reasonable efforts to
 preserve the present decentralized system.
 (c)  The department, after After consultation with the Texas
 Department of Transportation, the commission shall require state
 and local transportation planning entities designated by the
 department commission to prepare long-term projections of the
 combined impact of significant planned transportation system
 changes on emissions and air quality. The projections shall be
 prepared using air pollution estimation methodologies established
 jointly by the commission and the Texas Department of Motor
 Vehicles Transportation. This subsection does not restrict the
 Texas Department of Transportation's function as the
 transportation planning body for the state or its role in
 identifying and initiating specific transportation-related
 projects in the state.
  (d)  The Department of Public Safety may authorize
 enforcement personnel or other individuals to remove, disconnect,
 adjust, or make inoperable vehicle emissions control equipment,
 devices, or systems and to operate a vehicle in the tampered
 condition in order to perform a quality control audit of an
 inspection station or other quality control activities as necessary
 to assess and ensure the effectiveness of the vehicle emissions
 inspection and maintenance program.
 (e)  The Department of Public Safety shall develop a
 challenge station program to provide for the reinspection of a
 motor vehicle at the option of the owner of the vehicle to ensure
 quality control of a vehicle emissions inspection and maintenance
 system.
 (f)  The department commission may contract with one or more
 private entities to operate a program established under this
 section.
 (g)     In addition to other procedures established by the
 commission, the commission shall establish procedures by which a
 private entity with whom the commission has entered into a contract
 to operate a program established under this section may agree to
 perform:
 (1)     testing at a fleet facility or dealership using
 mobile test equipment;
 (2)     testing at a fleet facility or dealership using
 test equipment owned by the fleet or dealership but calibrated and
 operated by the private entity's personnel; or
 (3)     testing at a fleet facility or dealership using
 test equipment owned and operated by the private entity and
 installed at the fleet or dealership facility.
 (h)     The fee for a test conducted as provided by Subsection
 (g) shall be set by the commission in an amount not to exceed twice
 the fee otherwise provided by law or by rule of the commission. An
 appropriate portion of the fee, as determined by the commission,
 may be remitted by the private entity to the fleet facility or
 dealership.
 SECTION 8.  Section 382.208 (a), Health and Safety Code
 Code, is amended to read as follows: (a) Except as provided by
 Section 382.202(j) or another provision of this chapter, the
 commission and the department shall coordinate with federal, state,
 and local transportation planning agencies to develop and implement
 transportation programs and other measures necessary to
 demonstrate and maintain attainment of national ambient air quality
 standards and to protect the public from exposure to hazardous air
 contaminants from motor vehicles.
 SECTION 9.  Sections 382.209 (a),(b),(d). (e), and(j),
 Health and Safety Code Code, are amended to read as follows:
 Sec. 382.209.  LOW-INCOME VEHICLE REPAIR ASSISTANCE,
 RETROFIT, AND ACCELERATED VEHICLE RETIREMENT PROGRAM. (a) The
 commission and the Texas Department of Motor Vehicles Board by
 joint rule shall establish and authorize the commissioners court of
 a participating county to implement a low-income vehicle repair
 assistance, retrofit, and accelerated vehicle retirement program
 subject to agency oversight that may include reasonable periodic
 department commission audits.
 (b)  The department commission shall provide funding for
 local low-income vehicle repair assistance, retrofit, and
 accelerated vehicle retirement programs with available funds
 collected under Section 382.202, 382.302, or other designated and
 available funds.  The programs shall be administered in accordance
 with Chapter 783, Government Code.  Program costs may include call
 center management, application oversight, invoice analysis,
 education, outreach, and advertising.  Not more than 10 percent of
 the money provided to a local low-income vehicle repair assistance,
 retrofit, and accelerated vehicle retirement program under this
 section may be used for the administration of the programs,
 including program costs.
 (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)  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, and the Texas
 Department of Motor Vehicles, 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 vehicle is a
 qualifying motor vehicle.
 (j)  The department commission may provide monetary or other
 compensatory assistance under the low-income vehicle repair
 assistance, retrofit, and accelerated vehicle retirement program
 for a replacement vehicle or replacement assistance for a pre-1996
 model year replacement 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 department or the
 commission; provided, however, that a replacement vehicle under
 this subsection must be a qualifying motor vehicle.
 SECTION 10.  Sections 382.210 (a), (c), and (e), Health and
 Safety Code Code, are amended to read as follows: (a) The
 department 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 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 car of the current
 model year or the previous three model years, except as provided by
 Paragraph (C);
 (B)  $3,000 for a replacement truck of the current
 model year or the previous two model years, except as provided by
 Paragraph (C); and
 (C)  $3,500 for a replacement hybrid vehicle of
 the current model year or the previous model year;
 (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.
 (c)  The department commission may adopt any revisions made
 by the federal government to the emissions standards described by
 Subsection (b)(1).
 (e)  In rules adopted under this section, the department
 commission shall require a mandatory procedure that:
 (1)  produces a document confirming that a person is
 eligible to purchase a replacement 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 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 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 vehicle in the manner provided by this chapter.
 SECTION 11.  Sections 382.213, (a) and (h), Health and
 Safety Code Code, is 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 department 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 vehicle under Section 382.209(d)(2).
 (h)  For purposes of this section, the department commission
 shall adopt rules defining "emissions control equipment" and
 "engine."
 SECTION 12.  Section 382.216, Health and Safety Code Code,
 is amended to read as follows:
 Sec. 382.216.  INCENTIVES FOR VOLUNTARY PARTICIPATION IN
 VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM. The
 commission, and the Texas Department of Transportation, and the
 Public Safety Commission may, subject to federal limitations:
 (1)  encourage counties likely to exceed federal clean
 air standards to implement voluntary:
 (A)  motor vehicle emissions inspection and
 maintenance programs; and
 (B)  low-income vehicle repair assistance,
 retrofit, and accelerated vehicle retirement programs;
 (2)  establish incentives for counties to voluntarily
 implement motor vehicle emissions inspection and maintenance
 programs and low-income vehicle repair assistance, retrofit, and
 accelerated vehicle retirement programs; and
 (3)  designate a county that voluntarily implements a
 motor vehicle emissions inspection and maintenance program or a
 low-income vehicle repair assistance, retrofit, and accelerated
 vehicle retirement program as a "Clean Air County" and give
 preference to a county designated as a Clean Air County in any
 federal or state clean air grant program.
 SECTION 13.  Section 382.220, (b) and (d) Health and Safety
 Code, is amended to read as follows: (b)  A program under this
 section must be implemented in consultation with the department
 commission and may include a program to:
 (1)  expand and enhance the AirCheck Texas Repair and
 Replacement Assistance Program;
 (2)  develop and implement programs or systems that
 remotely determine vehicle emissions and notify the vehicle's
 operator;
 (3)  develop and implement projects to implement the
 commission's smoking vehicle program;
 (4)  develop and implement projects for coordinating
 with local law enforcement officials to reduce the number of
 illegally inspected vehicles use of counterfeit state inspection
 stickers by providing local law enforcement officials with funds to
 identify vehicles with counterfeit state inspection stickers and to
 carry out appropriate actions;
 (5)  develop and implement programs to enhance
 transportation system improvements; or
 (6)  develop and implement new air control strategies
 designed to assist local areas in complying with state and federal
 air quality rules and regulations.
 (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 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 department commission provides money to a county
 in the same amount that the county dedicates to a project authorized
 by Subsection (b).  The department commission may reduce the match
 requirement for a county that proposes to develop and implement
 independent test facility fraud detection programs, including the
 use of remote sensing technology for coordinating with law
 enforcement officials to detect, prevent, and prosecute the illegal
 inspection of motor vehicles use of counterfeit state inspection
 stickers.
 SECTION 14.  Subchapter H, Chapter 382, Health and Safety
 Code Code, is amended by amending Section 382.302 (b) and (c) to
 read as follows: (b)  After approving a request made under
 Subsection (a), the commission by resolution may request the Texas
 Department of Motor Vehicles Board Public Safety Commission to
 establish motor vehicle emissions inspection and maintenance
 program requirements for the participating county under Subchapter
 F, Chapter 548, Transportation Code, in accordance with this
 section and rules adopted under this section. The motor vehicle
 emissions inspection and maintenance program requirements for the
 participating county may include exhaust emissions testing,
 emissions control devices and systems inspections, or other testing
 methods that meet or exceed United States Environmental Protection
 Agency requirements, and a remote sensing component as provided by
 Section 382.204. The motor vehicle emissions inspection and
 maintenance program requirements adopted for the participating
 county may apply to all or to a defined subset of vehicles described
 by Section 382.203.
 (c)  The department and the commission, at the time of
 vehicle registration or reregistration, may assess fees for vehicle
 emissions-related inspections performed at inspection or
 reinspection facilities authorized and licensed by the department
 in amounts reasonably necessary to recover the costs of developing,
 administering, evaluating, and enforcing the vehicle emissions
 inspection and maintenance program. The commission may assess a
 fee for a vehicle inspection performed in accordance with a program
 established under this section. The fee must be in an amount
 reasonably necessary to recover the costs of developing,
 administering, evaluating, and enforcing the participating
 county's motor vehicle emissions inspection and maintenance
 program. An appropriate part of the fee as determined by commission
 rule may be retained by the station owner, contractor, or operator
 to recover the cost of performing the inspection and provide for a
 reasonable margin of profit.
 SECTION 15.  Subchapter A, Chapter 501, Transportation Code,
 is amended by amending Section 501.0276 to read as follows:
 Sec. 501.0276.  DENIAL OF TITLE RECEIPT OR CERTIFICATE OF
 TITLE FOR FAILURE TO PROVIDE PROOF OF VEHICLE INSPECTION EMISSIONS
 TESTING. A county assessor-collector shall may not issue a title
 receipt and the department shall may not issue a certificate of
 title for a vehicle subject to Section 548 unless proof that the
 vehicle has passed a vehicle inspection emissions test as required
 by that section, in a form authorized by that section, is presented
 to the county assessor-collector with the application for
 certificate of title.
 SECTION 16.  Subchapter A, Chapter 502, Transportation Code,
 is amended by amending Section 502.009 to read as follows:
 Sec. 502.009.  MOTOR VEHICLE EMISSIONS INSPECTION AND
 MAINTENANCE REQUIREMENTS. (a) The department Department of Public
 Safety shall ensure compliance with the motor vehicle emissions
 inspection and maintenance program required by Section 548 through
 a vehicle registration based denial system. inspection
 sticker-based enforcement system except as provided by this section
 or Section 548.3011. Subsections (b)-(e) apply only if the United
 States Environmental Protection Agency determines that the state
 has not demonstrated, as required by 40 C.F.R. Section 51.361, that
 sticker-based enforcement of the program is more effective than
 registration-based enforcement and gives the Texas Natural
 Resource Conservation Commission or the governor written
 notification that the reregistration-based enforcement of the
 program, as described by those subsections, will be required. If
 Subsections (b)-(e) are made applicable as provided by this
 subsection, the department shall terminate reregistration-based
 enforcement of the program under those subsections on the date the
 United States Environmental Protection Agency gives the Texas
 Natural Resource Conservation Commission or a person the commission
 designates written notification that reregistration-based
 enforcement is not required for the state implementation plan.
 (b)  The department may not register a motor vehicle if the
 department receives from the Texas Natural Resource Conservation
 Commission or the Department of Public Safety notification that the
 registered owner of the vehicle has not complied with Chapter 548.
 (c)  The county tax assessor-collector may not register a
 vehicle denied registration under Subsection (b) unless the tax
 assessor-collector has verification that the registered vehicle
 owner is in compliance with Subchapter F, Chapter 548.
 (d)  The department, and the Texas Commission on
 Environmental Quality Natural Resource Conservation Commission,
 and the Department of Public Safety shall enter an agreement
 regarding the responsibilities for costs associated with
 implementing this section.
 (e)  A county tax assessor-collector is not liable to any
 person for refusing to register a motor vehicle because of the
 person's failure to provide verification of the person's compliance
 with Subchapter F, Chapter 548.
 SECTION 17.  Subchapter A, Chapter 548, Transportation Code,
 is amended by amending Section 548.001 to read as follows:
 Sec. 548.001.  DEFINITIONS. In this chapter:
 (1)  "Commercial motor vehicle" means a self-propelled
 or towed vehicle, other than a farm vehicle with a gross weight,
 registered weight, or gross weight rating of less than 48,000
 pounds, that is used on a public highway to transport passengers or
 cargo if:
 (A)  the vehicle, including a school activity bus
 as defined in Section 541.201, or combination of vehicles has a
 gross weight, registered weight, or gross weight rating of more
 than 26,000 pounds;
 (B)  the vehicle, including a school activity bus
 as defined in Section 541.201, is designed or used to transport more
 than 15 passengers, including the driver; or
 (C)  the vehicle is used to transport hazardous
 materials in a quantity requiring placarding by a regulation issued
 under the Hazardous Materials Transportation Act (49 U.S.C. Section
 5101 et seq.).
 (2)  "Commission" means the Public Safety Commission.
 (3)  "Conservation commission" means the Texas
 Commission on Environmental Quality.
 (4)  "Department" means the Department of Motor
 Vehicles Public Safety.
 (5)  "Farm vehicle" has the meaning assigned by the
 federal motor carrier safety regulations.
 (6)  "Federal motor carrier safety regulation" has the
 meaning assigned by Section 644.001.
 (7)  "Inspection station" means a facility certified to
 conduct inspections of vehicles under this chapter.
 (8)  "Inspector" means an individual certified to
 conduct inspections of vehicles under this chapter.
 (9)  "Nonattainment area" means an area so designated
 within the meaning of Section 107(d) of the Clean Air Act (42 U.S.C.
 Section 7407).
 (10)  "Board" means Texas Department of Motor Vehicles
 Board
 (11)  "electronic inspection authorization" means an
 inspection authorization that is generated electronically through
 the vehicle inspection database that creates a unique
 nonduplicating authorization number assigned to the vehicle's
 inspection report upon successful passage of an inspection.  The
 term 'electronic inspection authorization' shall include the
 term 'inspection certificate' during the transition period to use
 of electronic inspection authorizations.
 SECTION 18.  Section 548.004, (c) Transportation Code, is
 amended to read as follows: (c)  The facility may inspect only a
 vehicle owned by the political subdivision or state agency. An
 officer, employee, or inspector of the subdivision or agency may
 not place an inspection certificate received from the department
 under this section on a vehicle not owned by the subdivision or
 agency.
 SECTION 19.  Section 548.006, Transportation Code, is
 amended to read as follows:
 Sec. 548.006.  ADVISORY COMMITTEE. (a)  An advisory
 committee consisting of a minimum of ten {nine} members shall:
 (1)  advise the conservation commission and the
 department on the conservation commission's and department's rules
 relating to the operation of the vehicle inspection program under
 this chapter;
 (2)  make recommendations to the conservation
 commission and the department relating to the content of rules
 involving the operation of the vehicle inspection program; and
 (3)  perform any other advisory function requested by
 the conservation commission or the department in administering this
 chapter and Chapter 382, Health and Safety Code.
 (b)  The members of the Department of Motor Vehicles Board
 commission shall appoint {seven} members of the committee as
 follows:
 (1)  four persons to represent inspection station
 owners and operators, with two of those persons from counties
 conducting vehicle emissions testing under Subchapter F and two of
 those persons from counties conducting safety only inspections,
 appointed based on recommendations provided by an existing
 association of owners and operators;
 (2)  one person to represent manufacturers of motor
 vehicle emissions inspection devices;
 (3)  two persons {one person) to represent independent
 vehicle {equipment} repair technicians, appointed based on
 recommendations provided by an existing association of repair
 technicians; and
 (4)  two persons, appointed by the Department of Motor
 Vehicles, to represent the public at large. {one person to
 represent the public interest.}
 (c)  In addition to members appointed under subsection (b);
 each regional council of governments created under Chapter 391,
 Local Government Code, may appoint 1 member to the committee.
 (d)(c)  The presiding officer of the conservation commission
 and the presiding officer of the Department of Motor Vehicles
 commission shall each appoint one member of the committee who will
 alternate serving as the presiding officer of the committee.
 (e)(d)  Committee members serve staggered three-year terms.
 (f)(e)  A vacancy on the committee is filled in the same
 manner as other appointments to the committee.
 (g)(f)  A member of the committee is not entitled to
 compensation, but is entitled to reimbursement of the member's
 travel expenses as provided in the General Appropriations Act for
 state employees.
 (h)(g)  The committee may elect an assistant presiding
 officer and a secretary from among its members and may adopt rules
 for the conduct of its own activities.
 (i)(h)  The committee is entitled to review and comment on
 rules to be considered for adoption by the conservation commission,
 the commission, or the department_under this chapter or Chapter
 382, Health and Safety Code, before the rules are adopted.
 (j)(i)  The committee shall hold a meeting at least once each
 quarter.
 (k)(j)  Chapter 2110, Government Code, does not apply to the
 committee.
 (l)  The committee shall provide a report to the Legislature,
 at minimum, on a bi-annual basis regarding the review of any changes
 to rule or statute.
 SECTION 20.  Section 548.008, Transportation Code, is
 amended to read as follows:
 Sec. 548.008.  VEHICLE INSPECTION PROGRAM DIRECTOR. (a)
 The vehicle inspection program is managed by a program director.
 The program director may not be a commissioned officer.
 (b)  The office of the vehicle inspection program director
 must be located in Austin, Texas.
 (c)  The duties of the program director include:
 (1)  responsibility for the quality of the vehicle
 inspection program;
 (2)  coordination of the regional offices;
 (3)  compilation of regional and statewide performance
 data;
 (4)  the establishment of best practices and
 distribution of those practices to the regional offices;
 (5)  setting goals for the entire program, in
 consultation with the Department of Motor Vehicles Board public
 safety director or the public safety director's designee, and
 setting goals for each regional office in consultation with the
 regional managers;
 (6)  monitoring the progress toward the goals set in
 Subdivision (5) and evaluating the program based on that progress;
 and
 (7)  coordination with the Texas Highway Patrol, local
 law enforcement personnel, and councils of government to enforce
 provisions related to vehicle inspection.
 (d)  The regional offices shall make reports as requested by
 the program director.
 SECTION 21.  Subchapter B, Chapter 548, Transportation Code,
 is amended by amending Section 548.053 to read as follows:
 Sec. 548.053.  REINSPECTION OF VEHICLE REQUIRING
 ADJUSTMENT, CORRECTION, OR REPAIR. (a) If an inspection discloses
 the necessity for adjustment, correction, or repair, an inspection
 station or inspector may not issue an electronic inspection
 authorization or passing vehicle inspection report inspection
 certificate until the adjustment, correction, or repair is made.
 The owner of the vehicle may have the adjustment, correction, or
 repair made by a qualified person of the owner's choice, subject to
 reinspection. The vehicle shall be reinspected once free of charge
 within 15 days after the date of the original inspection, not
 including the date the original inspection is made, at the same
 inspection station after the adjustment, correction, or repair is
 made.
 (b)  A vehicle that is inspected and is subsequently involved
 in an accident affecting the safe operation of an item of inspection
 must be reinspected following repair. The reinspection must be at
 an inspection station and shall be treated and charged as an initial
 inspection.
 (c)     If a vehicle subject to this chapter is damaged to the
 apparent extent that it would require repair before passing
 inspection, the investigating officer shall remove the inspection
 certificate from the vehicle windshield and give the operator of
 the vehicle a dated receipt. The vehicle must be reinspected not
 later than the 30th day after the date shown on the receipt.
 SECTION 22.  Subchapter C, Chapter 548, Transportation Code,
 is amended by amending Section 548.101 to read as follows:
 Sec. 548.101.  GENERAL ONE-YEAR INSPECTION PERIOD. (a)
 Except as provided by Section 548.102, the department shall require
 an annual inspection. The department shall set the periods of
 inspection and may make rules with respect to those periods.
 (b)  A vehicle that is required to be inspected in accordance
 with this section may be inspected 90 days prior to midnight of the
 last day of the month as designated by the vehicle registration
 sticker.
 (c)  A vehicle subject to inspection in accordance with this
 section must be inspected by the last day of the month in which the
 registration on the vehicle expires.
 (d)  An electronic inspection authorization issued under
 this chapter expires at midnight of the last day of the month
 designated by the vehicle registration sticker of the following
 year.
 SECTION 23.  Section 548.104, Transportation Code, is
 amended to read as follows:
 Sec. 548.104.  EQUIPMENT-RELATED PREREQUISITES TO ISSUANCE
 OF ELECTRONIC INSPECTION AUTHORIZATION INSPECTION CERTIFICATE.
 (a) The department commission shall adopt uniform standards of
 safety applicable to each item required to be inspected by Section
 548.051. The standards and the list of items to be inspected shall
 be posted in each inspection station.
 (b)  An inspection station or inspector may issue an
 electronic inspection authorization or passing vehicle inspection
 report inspection certificate only if the vehicle is inspected and
 found to be in proper and safe condition and to comply with this
 chapter and the rules adopted under this chapter.
 (c)  An inspection station or inspector may inspect only the
 equipment required to be inspected by Section 548.051 and may not:
 (1)  falsely and fraudulently represent to an applicant
 that equipment required to be inspected must be repaired, adjusted,
 or replaced before the vehicle will pass inspection; or
 (2)  require an applicant to have another part of the
 vehicle or other equipment inspected as a prerequisite for issuance
 of an electronic inspection authorization or passing vehicle
 inspection report inspection certificate.
 (d)  An inspection station or inspector may not issue an
 electronic inspection authorization or passing vehicle inspection
 report inspection certificate for a vehicle equipped with:
 (1)  a carburetion device permitting the use of
 liquefied gas alone or interchangeably with another fuel, unless a
 valid liquefied gas tax decal issued by the comptroller is attached
 to the lower right-hand corner of the front windshield of the
 vehicle on the passenger side; or
 (2)  a sunscreening device prohibited by Section
 547.613, except that the department by rule shall provide
 procedures for issuance of an electronic inspection authorization
 or passing vehicle inspection report inspection certificate for a
 vehicle exempt under Section 547.613(c).
 (e)  The department shall adopt rules relating to inspection
 of and issuance of an electronic inspection authorization or
 passing vehicle inspection report inspection certificate for a
 moped.
 SECTION 24.  Section 548.105, Transportation Code, is
 amended to read as follows:
 Sec. 548.105.  EVIDENCE OF FINANCIAL RESPONSIBILITY AS
 PREREQUISITE TO ISSUANCE OF INSPECTION CERTIFICATE. (a) An
 inspection station or inspector may not issue an electronic
 inspection authorization or passing vehicle inspection report
 inspection certificate for a vehicle unless the owner or operator
 furnishes evidence of financial responsibility at the time of
 inspection. Evidence of financial responsibility may be shown in
 the manner specified under Section 601.053(a). A personal
 automobile insurance policy used as evidence of financial
 responsibility must be written for a term of 30 days or more as
 required by Article 5.06, Insurance Code.
 (b)  An inspection station is not liable to a person,
 including a third party, for issuing an electronic inspection
 authorization or passing vehicle inspection report inspection
 certificate in reliance on evidence of financial responsibility
 furnished to the station. An inspection station that is the seller
 of a motor vehicle may rely on an oral insurance binder.
 SECTION 25.  Subchapter D, Chapter 548, Transportation Code,
 is amended by amending Section 548.201 to read as follows:
 Sec. 548.201.  COMMERCIAL MOTOR VEHICLE INSPECTION PROGRAM.
 (a) The department commission shall establish an inspection
 program for commercial motor vehicles that:
 (1)  meets the requirements of federal motor carrier
 safety regulations; and
 (2)  requires a commercial motor vehicle registered in
 this state to pass an annual inspection of all safety equipment
 required by the federal motor carrier safety regulations.
 (b)  A program under this section also applies to any:
 (1)  vehicle or combination of vehicles with a gross
 weight rating of more than 10,000 pounds that is operated in
 interstate commerce and registered in this state;
 (2)  school activity bus, as defined in Section
 541.201, that has a gross weight, registered weight, or gross
 weight rating of more than 26,000 pounds, or is designed to
 transport more than 15 passengers, including the driver; and
 (3)  school bus that will operate at a speed authorized
 by Section 545.352(b)(5)(A).
 SECTION 26.  Section 548.203, Transportation Code, is
 amended to read as follows:
 Sec. 548.203.  EXEMPTIONS. The department commission by
 rule may exempt a type of commercial motor vehicle from the
 application of this subchapter if the vehicle:
 (1)  was manufactured before September 1, 1995;
 (2)  is operated only temporarily on a highway of this
 state and at a speed of less than 30 miles per hour; and
 (3)  complies with Section 548.051 and each applicable
 provision in Title 49, Code of Federal Regulations.
 SECTION 27.  Subchapter E, Chapter 548, Transportation Code,
 is amended by amending Sections 548.251 through 548.255 to read as
 follows:
 Sec. 548.251.  DEPARTMENT TO PROVIDE ELECTRONIC INSPECTION
 AUTHORIZATIONS INSPECTION CERTIFICATES AND VERIFICATION FORMS.
 The department shall provide or transmit serially numbered
 electronic inspection authorizations inspection certificates and
 verification forms to inspection stations. The department may
 issue a unique inspection certificate for:
 (1)     a commercial motor vehicle inspected under Section
 548.201; or
 (2)  a vehicle inspected under Subchapter F.
 Sec. 548.252.  SAFEKEEPING AND CONTROL OF INSPECTION
 CERTIFICATES AND VERIFICATION FORMS. On being licensed, an
 inspector or owner of an inspection station shall:
 (1)  provide for the safekeeping of inspection
 certificates and verification forms;
 (2)  safeguard the certificates and forms against
 theft, loss, or damage;
 (3)  control the sequence of issuance of the
 certificates and forms; and
 (4)  ensure that the certificates and forms are issued
 in accordance with department rules.
 Sec. 548.253.  INFORMATION TO BE RECORDED ON ISSUANCE OF
 electronic inspection authorization, passing vehicle inspection
 report, INSPECTION CERTIFICATE AND VERIFICATION FORM. An
 inspection station or inspector, on issuing an electronic
 inspection authorization, passing vehicle inspection report,
 inspection certificate and verification form, shall:
 (1)  make a record and report as prescribed by the
 department of the inspection and electronic inspection
 authorization certificate issued; and
 (2)  include in the electronic inspection
 authorization inspection certificate and verification form the
 information required by the department for the type of vehicle
 inspected.
 Sec. 548.254.  VALIDITY OF electronic inspection
 authorization INSPECTION CERTIFICATE. An electronic inspection
 authorization inspection certificate is invalid after the end of
 the 12th month following the month in which the certificate is
 issued. An unused inspection certificate representing a previous
 inspection period may not be issued after the beginning of the next
 period.
 Sec.   548.255.     ATTACHMENT OR PRODUCTION OF INSPECTION
 CERTIFICATE. (a) An inspection certificate shall be attached to or
 produced for a vehicle in the manner required by department rule.
 (b)  The department shall:
 (1)     require that a certificate for a motorcycle be
 attached to the rear of the motorcycle near the license plate; and
 (2)     adopt rules with respect to display of an
 inspection certificate for a moped.
 SECTION 28.  Subchapter E, Chapter 548, Transportation Code,
 is amended by deleting Section 548.257 and amending Section
 548.258 to read as follows:
 Sec.   548.257.     LOST, STOLEN, OR DESTROYED CERTIFICATE. (a)
 If an inspection certificate is lost, stolen, or destroyed during
 the period during which the certificate is valid, the vehicle must
 be reinspected and any applicable fee paid before a new certificate
 is issued, except that the vehicle is not subject to any emissions
 inspection. The replacement certificate is valid for the remaining
 period of validity of the original certificate.
 (b)     The department by rule shall specify the method for
 establishing that:
 (1)     the certificate has been lost, stolen, or
 destroyed; and
 (2)     the reinspection is within the period of validity
 of the lost, stolen, or destroyed certificate.
 (c)     As part of its rules under Subsection (b), the
 department shall adopt measures to ensure that the reinspection
 procedure provided by this section is not used fraudulently to
 avoid any required inspection.
 Sec. 548.258.  USE OF TEXASONLINE AND VEHICLE INSPECTION
 DATABASE. (a) In this section, "TexasOnline" has the meaning
 assigned by Section 2054.003, Government Code.
 (b)  The department shall may adopt rules to require an
 inspection station to use TexasOnline or the Vehicle Inspection
 Database to:
 (1)  issue an electronic inspection authorization
 purchase inspection certificates; and or
 (2)  send to the department a record, report, or other
 information required by the department.
 (c)  The department shall adopt rules to allow an inspection
 station to use TexasOnline to renew an annual vehicle registration
 of a motor vehicle.
 (d)  An inspection station may charge a convenience fee not
 to exceed $15 for a registration renewal conducted pursuant to
 subsection (c).
 SECTION 29.  Subchapter F, Chapter 548, Transportation Code,
 is amended by amending Sections 548.301 through 548.304 to read as
 follows
 Sec. 548.301.  DEPARTMENT COMMISSION TO ESTABLISH PROGRAM.
 (a) The department commission shall establish a motor vehicle
 emissions inspection and maintenance program for vehicles as
 required by any law of the United States or the state's air quality
 state implementation plan.
 (b)  The department commission by rule may establish a motor
 vehicle emissions inspection and maintenance program for vehicles
 specified by the conservation commission in a county for which the
 conservation commission has adopted a resolution requesting the
 department commission to establish such a program and for which the
 county and the municipality with the largest population in the
 county by resolution have formally requested a proactive air
 quality plan consisting of such a program.
 (b-1)  The department commission by rule may establish a
 motor vehicle emissions inspection and maintenance program for
 vehicles subject to an early action compact as defined by Section
 382.301, Health and Safety Code, that is consistent with the early
 action compact.
 (c)  A program established under this section shall
 Subsection (b) or (b-1) may include registration and
 reregistration-based enforcement.
 (d)  A vehicle emissions inspection under this section may be
 performed by the same facility that performs a safety inspection if
 the facility is authorized and certified by the department to
 perform the vehicle emissions inspection and certified by the
 department to perform the safety inspection.
 Sec. 548.3011.  EMISSIONS TEST ON RESALE. (a) This section
 applies only to a vehicle:
 (1)  the most recent certificate of title for which or
 registration of which was issued in a county without a motor vehicle
 emissions inspection and maintenance program; or and
 (2)  the ownership of which has changed and which has
 been the subject of a retail, private sale or gift sale as defined
 by Section 2301.002, Occupations Code, and will primarily be
 operated in a county with a motor vehicle emissions inspection and
 maintenance program.
 (b)  Notwithstanding Subsection (a), this section does not
 apply to a vehicle that is a 2 year old 1996 or newer model that has
 less than 50,000 miles.
 (c)  A vehicle subject to this section is not eligible for a
 title receipt under Section 501.024, a certificate of title under
 Section 501.027, or registration under Chapter 502 in a county with
 a motor vehicle emissions inspection and maintenance program unless
 proof is presented with the application for certificate of title,
 or registration, as appropriate, that the vehicle, not earlier than
 the 90th day before the date on which the new owner's application
 for certificate of title, or registration is filed with the county
 clerk or county assessor-collector, as appropriate, has passed an
 approved vehicle emissions test in the county in which it is to be
 titled or registered.
 (d)  The proof required by Subsection (c) may be in the form
 of an electronic inspection authorization, a valid Vehicle
 Inspection Report (VIR) or other proof of program compliance as
 authorized by the department.
 Sec. 548.302.  DEPARTMENT OF MOTOR VEHICLES COMMISSION TO
 ADOPT STANDARDS AND REQUIREMENTS. The department of motor vehicles
 commission shall:
 (1)  adopt standards for emissions-related inspection
 criteria consistent with requirements of the United States and the
 conservation commission applicable to a county in which a program
 is established under this subchapter; and
 (2)  develop and impose requirements necessary to
 ensure that an electronic inspection authorization inspection
 certificate is not issued to a vehicle subject to a program
 established under this subchapter unless the vehicle has passed a
 motor vehicle emissions inspection at a facility authorized and
 certified by the department of motor vehicles.
 Sec. 548.303.  PROGRAM ADMINISTRATION. The department of
 motor vehicles commission shall administer the motor vehicle
 emissions inspection and maintenance program under this
 subchapter.
 Sec. 548.304.  STATIONS LICENSED TO CONDUCT EMISSIONS
 INSPECTIONS. (a) The department may authorize and certify
 inspection stations as necessary to implement the
 emissions-related inspection requirements of the motor vehicle
 emissions inspection and maintenance program established under
 this subchapter if the station meets the department's certification
 requirements.
 (b)     The department shall provide inspection certificates
 for distribution and issuance at inspection stations certified by
 the department.
 SECTION 30.  Section 548.306 (h), Transportation Code, is
 amended to read as follows:(h)  The Texas Department of Motor
 Vehicles shall Transportation may deny reregistration of a vehicle
 if the registered owner of the vehicle has received notification
 under Subsection (c) and the vehicle has not passed a verification
 emissions inspection.
 SECTION 31.  Section 548.307, Transportation Code, is
 amended to read as follows:
 Sec. 548.307.  ALTERNATIVE TESTING METHODOLOGY FOR CERTAIN
 COUNTIES. The department commission by rule may establish
 procedures for testing and enforcing vehicle emissions standards by
 use of alternative testing methodology that meets or exceeds United
 States Environmental Protection Agency requirements in a county
 participating in an early action compact under Subchapter H,
 Chapter 382, Health and Safety Code.
 SECTION 32.  Subchapter G, Chapter 548, Transportation Code,
 is amended by amending Section 548.401 to read as follows
 Sec. 548.401.  CERTIFICATION GENERALLY. A person may
 perform an inspection or issue an electronic inspection
 authorization inspection certificate only if certified to do so by
 the department under rules adopted by the department.
 SECTION 33.  Section 548.405 (a), Transportation Code, is
 amended 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 conducts an inspection,
 fails to conduct an inspection, or issues an electronic inspection
 authorization 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.
 SECTION 34.  Section 548.407 (d), Transportation Code, is
 amended to read as follows: (d)  The department may provide that a
 revocation or suspension takes effect on receipt of notice under
 Subsection (b) if the department finds that the action is necessary
 to prevent or remedy a threat to public health, safety, or welfare.
 Violations that present a threat to public health, safety, or
 welfare include:
 (1)  issuing an electronic inspection authorization
 inspection certificate with knowledge that the issuance is in
 violation of this chapter or rules adopted under this chapter;
 (2)  falsely or fraudulently representing 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)  issuing an electronic inspection authorization
 inspection certificate:
 (A)  without authorization to issue the
 electronic inspection authorization certificate; or
 (B)  without inspecting the vehicle;
 (4)  issuing an electronic inspection authorization
 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;
 (5)  knowingly issuing an electronic inspection
 authorization 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;
 (6)  refusing to allow a vehicle's owner to have a
 qualified person of the owner's choice make a required repair,
 adjustment, or correction;
 (7)  charging for an inspection an amount greater than
 the authorized fee;
 (8)  a violation of Subchapter F;
 (9)  a violation of Section 548.603; or
 (10)  a conviction of a felony or a Class A or B
 misdemeanor that directly relates to or affects the duties or
 responsibilities of a vehicle inspection station or inspector or a
 conviction of a similar crime under the jurisdiction of another
 state or the federal government.
 SECTION 35.  Subchapter H, Chapter 548, Transportation Code,
 is amended by amending Sections 548.501 through 548.505 to read as
 follows:
 Sec. 548.501.  INSPECTION FEES GENERALLY. (a) Except as
 provided by Sections 548.503 and 548.504, the fee for inspection of
 a motor vehicle other than a moped is $12.50. The fee for
 inspection of a moped is $5.75. The fee for a verification form
 issued as required by Section 548.256 is $1.
 (b)  The registered vehicle owner at the time of annual
 vehicle registration An inspection station shall pay to the
 department $5.50 of each a fee determined by the department for an
 inspection. The department may require the station to make an
 advance payment of $5.50 for each inspection certificate provided
 to the station. If advance payment is made:
 (1)     no further payment may be required on issuance of a
 certificate;
 (2)     the inspection station may waive the fee due from
 the owner of an inspected vehicle who is issued a certificate to
 which the advance payment applies;
 (3)     the department shall refund to the inspection
 station $5.50 for each unissued certificate that the station
 returns to the department in accordance with department rules; and
 (4)     the conservation commission shall pay to the
 department $2 for each unissued certificate that the station
 returns to the department.
 Sec. 548.502.  INSPECTION BY POLITICAL SUBDIVISION OR STATE
 AGENCY. A political subdivision or state agency for which the
 department certifies an inspection station under Section 548.004:
 (1)  shall pay to the department an advance payment of
 an amount determined by the department $5.50 for each electronic
 inspection authorization inspection certificate provided to it;
 and
 (2)  may not be required to pay the compulsory
 inspection fee.
 Sec. 548.503.  INITIAL TWO-YEAR INSPECTION OF PASSENGER CAR
 OR LIGHT TRUCK. (a) The fee for inspection of a passenger car or
 light truck under Section 548.102 shall not exceed $21.75. be set by
 the department by rule on or before September 1 of each year. A fee
 set by the department under this subsection must be based on the
 costs of producing certificates, providing inspections, and
 administering the program, but may not be less than $21.75.
 (b)  The department shall require the vehicle owner upon the
 initial registration of the vehicle to pay a fee determined by the
 department. an inspection station to make an advance payment of
 $14.75 for a certificate to be issued under this section.
 Additional payment may not be required of the station for the
 certificate. The inspection station may waive the fee due from the
 owner of the vehicle inspected. A refund for an unissued
 certificate shall be made in the same manner as provided for other
 certificate refunds.
 Sec. 548.504.  INSPECTION OF COMMERCIAL MOTOR VEHICLE. (a)
 The fee for inspection of a commercial motor vehicle under the
 program established under Section 548.201 is $50.
 (b)  The vehicle owner upon the annual registration of the
 vehicle shall pay a fee determined by the department.  The
 inspection station shall pay to the department $10 of each fee for
 inspection of a commercial motor vehicle. The department may
 require the station to make an advance payment of $10 for a
 certificate to be issued under this section. If advance payment is
 made:
 (1)     no additional payment may be required of the
 station for the certificate; and
 (2)     a refund for an unissued certificate shall be made
 in the same manner as provided for other certificate refunds.
 Sec. 548.505.  EMISSIONS-RELATED INSPECTION FEE. (a) The
 department by rule shall establish may impose an inspection fee
 charged by the inspection station and a fee collected at the time of
 vehicle registration for a vehicle inspected under Section
 548.301(a) in addition to the fee provided by Section 548.501,
 548.502, 548.503, or 548.504. A fee imposed under this subsection
 must be based on the costs of:
 (1)  producing electronic inspection authorizations
 certificates;
 (2)  providing inspections; and
 (3)  administering the program.
 (b)  The department may provide a maximum fee for an
 inspection under this subchapter. The department may not set a
 minimum fee for an inspection under this subchapter.
 SECTION 36.  Subchapter I, Chapter 548, Transportation Code,
 is amended by amending Sections 548.601 (a) to read as follows:
 (a)  A person, including an inspector or an inspection
 station, commits an offense if the person:
 (1)  issues an electronic inspection authorization
 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 electronic inspection authorization
 inspection certificate:
 (A)  without authorization to issue the
 electronic inspection authorization certificate; or
 (B)  without inspecting the vehicle;
 (5)  issues an electronic inspection authorization
 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 electronic inspection
 authorization 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 37.  Section 548.602, Transportation Code, is
 deleted.
 Sec.   548.602.     FAILURE TO DISPLAY INSPECTION CERTIFICATE.
 (a) After the fifth day after the date of expiration of the period
 designated for inspection, a person may not operate:
 (1)     a motor vehicle registered in this state unless a
 current and appropriate inspection certificate is displayed on the
 vehicle; or
 (2)     a commercial motor vehicle registered in this
 state unless it is equipped as required by federal motor carrier
 safety regulations and displays an inspection certificate issued
 under the program established under Section 548.201.
 (b)     A peace officer who exhibits a badge or other sign of
 authority may stop a vehicle not displaying an inspection
 certificate on the windshield and require the owner or operator to
 produce an inspection certificate for the vehicle.
 (c)     It is a defense to prosecution under Subsection (a)(1)
 that an inspection certificate for the vehicle is in effect at the
 time of the arrest.
 SECTION 38.  Section 548.603, Transportation Code, is
 amended to read as follows:
 Sec. 548.603.  FICTITIOUS OR COUNTERFEIT VEHICLE INSPECTION
 REPORT (VIP) INSPECTION CERTIFICATE OR INSURANCE DOCUMENT. (a) A
 person commits an offense if the person:
 (1)  presents, displays or causes or permits to be
 displayed a vehicle inspection report (vir) an inspection
 certificate or insurance document knowing that the certificate or
 document is counterfeit, tampered with, altered, fictitious,
 issued for another vehicle, issued for a vehicle failing to meet all
 emissions inspection requirements, or issued in violation of:
 (A)  this chapter, rules adopted under this
 chapter, or other law of this state; or
 (B)  a law of another state, the United States,
 the United Mexican States, a state of the United Mexican States,
 Canada, or a province of Canada;
 (2)     transfers an inspection certificate from a
 windshield or location to another windshield or location;
 (2)(3)  with intent to circumvent the emissions
 inspection requirements seeks an inspection of a vehicle at a
 station not certified to perform an emissions inspection if the
 person knows that the vehicle is required to be inspected under
 Section 548.301;
 (3)(4)  knowingly does not comply with an emissions
 inspection requirement for a vehicle; or
 (5)     displays on a vehicle an inspection certificate
 that was obtained knowing that the vehicle does not meet all
 emissions inspection requirements for the vehicle.
 (b)  A person commits an offense if the person:
 (1)  makes or possesses, with the intent to sell,
 circulate, or pass, a counterfeit vehicle inspection report (vir)
 inspection certificate or insurance document; or
 (2)  possesses any part of a stamp, dye, plate,
 negative, machine, or other device that is used or designated for
 use in making a counterfeit vehicle inspection report (vir)
 inspection certificate or insurance document.
 (c)  The owner of a vehicle commits an offense if the owner
 knowingly allows the vehicle to be registered or operated while the
 vehicle displays an inspection certificate in violation of
 Subsection (a).
 (d)  An offense under Subsection (a) or (c) is a Class B
 misdemeanor. An offense under Subsection (b) is a third degree
 felony unless the person acts with the intent to defraud or harm
 another person, in which event the offense is a second degree
 felony.
 (e)  In this section:
 (1)  "Counterfeit" means an imitation of a document
 that is printed, engraved, copied, photographed, forged, or
 manufactured by a person not authorized to take that action under:
 (A)  this chapter, rules adopted under this
 chapter, or other law of this state; or
 (B)  a law of another state, the United States,
 the United Mexican States, a state of the United Mexican States,
 Canada, or a province of Canada.
 (2)  "Vehicle Inspection Report (vir)""Inspection
 certificate" means a document that is printed, manufactured, or
 made by the department or an authorized agent of the department for
 issuance after a vehicle passes an inspection performed under this
 chapter.
 (2)(3)  "Insurance document" means a standard proof of
 motor vehicle insurance coverage that is:
 (A)  in a form prescribed by the Texas Department
 of Insurance or by a similarly authorized board, agency, or
 authority of another state; and
 (B)  issued by an insurer or insurer's agent who
 is authorized to write motor vehicle insurance coverage.
 (3)(4)  "Person" includes an inspection station or
 inspector.
 Text of subsec. (f) as added by Acts 1997, 75th Leg., ch. 851,
 Sec. 2
 (f)  Notwithstanding Subsection (c), an offense under
 Subsection (a)(1) that involves a fictitious vehicle inspection
 report (vir) inspection certificate is a Class B misdemeanor.
 Text of subsec. (f) as added by Acts 1997, 75th Leg., ch. 1069, Sec.
 16
 (f)     A motor vehicle on which a vehicle emissions inspection
 certificate is displayed in violation of Subsection (a) and that is
 operated or parked on a public roadway may be impounded by a peace
 officer or other authorized employee of this state or a political
 subdivision of this state in which the vehicle is operated or
 parked.
 SECTION 39.  Section 548.603, Transportation Code is
 deleted.
 Sec.   548.605.     DISMISSAL OF CHARGE; ADMINISTRATIVE FEE.
 (a) In this section, "working day" means any day other than a
 Saturday, a Sunday, or a holiday on which county offices are closed.
 (b)  The court shall:
 (1)     dismiss a charge of driving with an expired
 inspection certificate if:
 (A)     the defendant remedies the defect within 20
 working days or before the defendant's first court appearance date,
 whichever is later; and
 (B)     the inspection certificate has not been
 expired for more than 60 days; and
 (2)     assess an administrative fee not to exceed $20
 when the charge of driving with an expired inspection certificate
 has been remedied.
 (c)     Notwithstanding Subsection (b)(1)(B), the court may
 dismiss a charge of driving with an expired inspection certificate
 that has been expired for more than 60 days.
 SECTION 40.  This Act takes effect Sept. 1, 2011