By: Buckingham, Birdwell S.B. No. 604
Hall
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Department
of Motor Vehicles and to the operations of certain other entities
performing functions associated with the department.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GENERAL PROVISIONS
SECTION 1.01. Section 1001.005, Transportation Code, is
amended to read as follows:
Sec. 1001.005. SUNSET PROVISION. The department is subject
to Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the department
is abolished September 1, 2031 [2019].
SECTION 1.02. Section 1001.023(a), Transportation Code, is
amended to read as follows:
(a) The governor shall appoint one of the public members of
the board to serve as [board's members] chair of the board. The
chair serves at the pleasure of the governor. The board shall elect
one of its members vice chair of the board. The vice chair serves at
the pleasure of the board.
SECTION 1.03. Section 1001.030, Transportation Code, is
amended to read as follows:
Sec. 1001.030. BOARD MEMBER TRAINING [ON DEPARTMENT AND
CERTAIN LAWS RELATING TO DEPARTMENT]. (a) A [To be eligible to
take office as a member of the board, a] person who is appointed to
and qualifies for office as a member of
deliberate, or be counted as a member in attendance at a meeting
of the board until the person completes
one course of
section.
(b) The training program must provide the person with
information [to the person] regarding:
(1) the law governing department operations [this
subchapter];
(2) the board's programs, functions, and rules and the
budget of [operated by] the department;
(3) the scope of and limitations on the rulemaking
authority [role and functions] of the board [department];
(4) the types of board rules, interpretations, and
enforcement actions that may implicate federal antitrust law by
limiting competition or impacting prices charged by persons engaged
in a profession or business the board regulates, including any
rule, interpretation, or enforcement action that:
(A) regulates the scope of practice of persons in
a profession or business the board regulates;
(B) restricts advertising by persons in a
profession or business the board regulates;
(C) affects the price of goods or services
provided by persons in a profession or business the board
regulates; or
(D) restricts participation in a profession or
business the board regulates [rules of the department with an
emphasis on the rules that relate to disciplinary and investigatory
authority];
(5) [the current budget for the department;
[(6)] the results of the most recent formal audit of
the department;
(6) [(7)] the requirements of [the]:
(A) laws relating to open meetings, public
information, [law, Chapter 551, Government Code;
[(B) open records law, Chapter 552, Government
Code; and
[(C)] administrative procedure [law], and
disclosure of conflicts of interest; and
(B) other laws applicable to members of the board
in performing their duties [Chapter 2001, Government Code;
[(8) the requirements of the conflict of interest laws
and other laws relating to public officials]; and
(7) [(9)] any applicable ethics policies adopted by
the department [board] or the Texas Ethics Commission.
(c) A person appointed to the board is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program,
regardless of whether the attendance at the program occurs before
or after [as provided by the General Appropriations Act and as if]
the person qualifies for office [were a member of the board].
(d) The executive director shall create a training manual
that includes the information required by Subsection (b). The
executive director shall distribute a copy of the training manual
annually to each member of the board. Each member of the board
shall sign and submit to the executive director a statement
acknowledging that the member received and has reviewed the
training manual.
SECTION 1.04. Section 1001.041(a), Transportation Code, is
amended to read as follows:
(a) Subject to the General Appropriations Act or other law,
the executive director shall appoint deputies, assistants, and
other personnel, including a general counsel, as necessary to carry
out the powers and duties of the department under this code, other
applicable vehicle laws of this state, and other laws granting
jurisdiction or applicable to the department.
SECTION 1.05. Section 1001.0411, Transportation Code, is
amended by adding Subsection (c) to read as follows:
(c) In accordance with Section 1001.041(a), the executive
director shall hire and oversee a general counsel to advise the
department.
SECTION 1.06. Section 1001.042, Transportation Code, is
amended to read as follows:
Sec. 1001.042. DIVISION OF RESPONSIBILITIES. The board
shall develop and implement policies that clearly separate [define]
the policy-making responsibilities of the board and the management
[respective] responsibilities of the executive director, including
the appointment of department staff, and the staff of the
department.
SECTION 1.07. Chapter 1003, Transportation Code, is amended
by adding Sections 1003.0055 and 1003.008 to read as follows:
Sec. 1003.0055. COMPLAINTS. (a) The department shall
maintain a system to promptly and efficiently act on complaints
filed with the department. The department shall maintain
information about parties to and the subject matter of the
complaint and a summary of the results of the review or
investigation of the complaint and the disposition of the
complaint.
(b) The department shall make information available
describing its procedures for complaint investigation and
resolution.
(c) The department shall periodically notify the parties to
the complaint of the status of the complaint until final
disposition.
Sec. 1003.008. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The board shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of department rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the department's
jurisdiction.
(b) The department's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The department shall:
(1) coordinate the implementation of the policy
developed under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
SECTION 1.08. The following provisions are repealed:
(1) Section 2110.002(c), Government Code; and
(2) Section 1001.031(a-1), Transportation Code.
SECTION 1.09. If the chair of the board of the Texas
Department of Motor Vehicles is not a public member as required by
Section 1001.023(a), Transportation Code, as amended by this Act,
the governor shall designate a public member of that board to serve
as chair not later than December 1, 2019.
SECTION 1.10. (a) Except as provided by Subsection (b) of
this section, Section 1001.030, Transportation Code, as amended by
this Act, applies to a member of the board of the Texas Department
of Motor Vehicles who is appointed before, on, or after the
effective date of this Act.
(b) A member of the board of the Texas Department of Motor
Vehicles who, before the effective date of this Act, completed the
training program required by Section 1001.030, Transportation
Code, as that law existed before the effective date of this Act, is
required to complete additional training only on subjects added by
this Act to the training program as required by Section 1001.030,
Transportation Code, as amended by this Act. A board member
described by this subsection may not vote, deliberate, or be
counted as a member in attendance at a meeting of the board held on
or after December 1, 2019, until the member completes the
additional training.
ARTICLE 2. LICENSING
SECTION 2.01. Section 2301.203(c), Occupations Code, is
amended to read as follows:
(c) Except as otherwise provided by this subsection, the
[The] board may not file a complaint alleging a violation of this
chapter or a board rule relating to advertising until the board has
notified the license holder involved of the alleged violation and
given the license holder an opportunity to cure the violation
without further proceedings or liability. If the board has
previously given a license holder notice and an opportunity to cure
any violation of this chapter or a board rule relating to
advertising as provided by this subsection, the board may file a
complaint alleging a subsequent violation of this chapter or a
board rule relating to advertising after the board has notified the
license holder involved of the alleged violation.
SECTION 2.02. Section 2301.251(a), Occupations Code, is
amended to read as follows:
(a) Unless a person holds a license issued under this
chapter authorizing the activity, the person may not:
(1) engage in business as, serve in the capacity of, or
act as a dealer, manufacturer, distributor, converter,
[representative,] vehicle lessor, or vehicle lease facilitator in
this state; or
(2) perform or offer to perform repair services on a
motor vehicle under a franchise and a motor vehicle manufacturer's
warranty, regardless of whether the person sells or offers to sell
motor vehicles at the same location.
SECTION 2.03. Section 2301.258, Occupations Code, is
amended to read as follows:
Sec. 2301.258. GENERAL REQUIREMENTS FOR APPLICATION FOR
MANUFACTURER'S, DISTRIBUTOR'S, OR CONVERTER'S[, OR
REPRESENTATIVE'S] LICENSE. An application for a manufacturer's,
distributor's, or converter's[, or representative's] license must
be on a form prescribed by the department. The application must
include information the department determines necessary to fully
determine the qualifications of an applicant, including financial
resources, business integrity and experience, facilities and
personnel for serving franchised dealers, and other information the
department determines pertinent to safeguard the public interest
and welfare.
SECTION 2.04. Section 2301.264(a), Occupations Code, is
amended to read as follows:
(a) The annual fees for a license issued under this chapter
are:
(1) $900 for a manufacturer or distributor, plus $20
for each dealer franchised by the manufacturer or distributor;
(2) for a franchised dealer:
(A) $175, if the dealer sold fewer than 201 new
motor vehicles during the preceding calendar year;
(B) $275, if the dealer sold more than 200 but
fewer than 401 new motor vehicles during the preceding calendar
year;
(C) $400, if the dealer sold more than 400 but
fewer than 801 new motor vehicles during the preceding calendar
year;
(D) $500, if the dealer sold more than 800 but
fewer than 1,201 new motor vehicles during the preceding calendar
year;
(E) $625, if the dealer sold more than 1,200 but
fewer than 1,601 new motor vehicles during the preceding calendar
year;
(F) $750, if the dealer sold more than 1,600 new
motor vehicles during the preceding calendar year; and
(G) $100 for each location separate from the
dealership at which the dealer does not offer motor vehicles for
sale but performs warranty service work on vehicles the dealer is
franchised and licensed to sell;
(3) [$100 for a representative;
[(4)] $375 for a converter;
(4) [(5)] for a vehicle lessor:
(A) $175, if the lessor leased 200 or fewer motor
vehicles during the preceding calendar year;
(B) $275, if the lessor leased more than 200 but
fewer than 401 motor vehicles during the preceding calendar year;
(C) $400, if the lessor leased more than 400 but
fewer than 801 motor vehicles during the preceding calendar year;
(D) $500, if the lessor leased more than 800 but
fewer than 1,201 motor vehicles during the preceding calendar year;
(E) $625, if the lessor leased more than 1,200
but fewer than 1,601 motor vehicles during the preceding calendar
year; and
(F) $750, if the lessor leased more than 1,600
motor vehicles during the preceding calendar year; and
(5) [(6)] $375 for a vehicle lease facilitator.
SECTION 2.05. Section 2301.304, Occupations Code, is
amended to read as follows:
Sec. 2301.304. PROCEDURE FOR RENEWAL OF CERTAIN LICENSES.
The holder of a manufacturer's, distributor's, or converter's[, or
representative's] license may apply for a renewal of the license by
complying with the application process specified by this chapter
and board rule.
SECTION 2.06. Section 2301.358(c), Occupations Code, is
amended to read as follows:
(c) This section does not prohibit the sale of a towable
recreational vehicle, motor home, ambulance, fire-fighting
vehicle, or tow truck at a show or exhibition if:
(1) the [show or exhibition is approved by the]
department receives written notice of the show or exhibition before
the date the show or exhibition opens; and
(2) the sale is not otherwise prohibited by law.
SECTION 2.07. Section 2301.709, Occupations Code, is
amended by adding Subsection (d) to read as follows:
(d) The board shall adopt rules and policies that establish
standards for reviewing a case under this subchapter. The rules and
policies must:
(1) specify the role of division personnel in managing
contested cases before the board or a person delegated power from
the board under Section 2301.154, including advising on procedural
matters;
(2) specify appropriate conduct and discussion by the
board or a person delegated power from the board under Section
2301.154 regarding proposals for decision issued by administrative
law judges;
(3) specify clear expectations limiting arguments and
discussion under Subsection (b) to evidence in the record of the
contested case hearing held by the administrative law judge;
(4) address ex parte communications; and
(5) distinguish between using industry expertise and
representing or advocating for an industry when reviewing a case
under this subchapter.
SECTION 2.08. Subchapter Q, Chapter 2301, Occupations Code,
is amended by adding Section 2301.807 to read as follows:
Sec. 2301.807. REFUND. If, after a proceeding under this
chapter and board rules, the board determines that a person is
violating or has violated this chapter or a rule adopted or order
issued under this chapter, the board may order the person to pay a
refund to the buyer or lessee of the motor vehicle that is the
subject of the proceeding.
SECTION 2.09. Section 2302.101, Occupations Code, is
amended to read as follows:
Sec. 2302.101. [LICENSE REQUIRED FOR] SALVAGE VEHICLE
DEALER LICENSE. (a) Unless a person holds a salvage vehicle
dealer license issued under this chapter, the person may not:
(1) act as a salvage vehicle dealer or rebuilder; or
(2) store or display a motor vehicle as an agent or
escrow agent of an insurance company.
(b) A person who holds a salvage vehicle dealer license
issued under this chapter may perform any of the activities of a
salvage vehicle dealer, including:
(1) buying salvage motor vehicles and nonrepairable
motor vehicles or selling salvage motor vehicles and nonrepairable
motor vehicles that have been issued a salvage vehicle title or
nonrepairable vehicle title, as appropriate;
(2) engaging in the business of selling nonrepairable
motor vehicles or salvage motor vehicles at auction, including
wholesale auction;
(3) offering or negotiating to sell or buy salvage
motor vehicles or nonrepairable motor vehicles owned by a license
holder and to be purchased or sold by another license holder;
(4) acting as the agent or representative of a license
holder in performing an act described by Subdivision (3); and
(5) acquiring and repairing, rebuilding, or
reconstructing for operation on a public highway more than five
salvage motor vehicles in a calendar year.
SECTION 2.10. Section 2302.103, Occupations Code, is
amended to read as follows:
Sec. 2302.103. APPLICATION FOR SALVAGE VEHICLE DEALER
LICENSE. [(a)] To apply for a salvage vehicle dealer license, a
person must submit to the department an application on a form
prescribed by the department and the application fee.
[(b) An applicant may apply for a salvage vehicle dealer
license with an endorsement in one or more of the following
classifications:
[(1) new automobile dealer;
[(2) used automobile dealer;
[(3) salvage pool operator;
[(4) salvage vehicle broker; or
[(5) salvage vehicle rebuilder.]
SECTION 2.11. Section 2302.151, Occupations Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) A license issued under this chapter is valid for the
period prescribed by the board [expires on the first anniversary of
the date of issuance].
(c) If the board prescribes the term of a license under this
chapter for a period other than one year, the board shall prorate
the applicable fee required under this chapter as necessary to
reflect the term of the license.
SECTION 2.12. Section 2302.351(b), Occupations Code, is
amended to read as follows:
(b) If a salvage vehicle dealer or[,] an employee of the
dealer acting in the course of employment[, or a salvage vehicle
agent operating under the dealer's license] is convicted of more
than one offense under Section 2302.353(a), the district attorney
for a county in which the dealer's salvage business is located may
bring an action in that county to enjoin the dealer's business
operations for a period of at least one year.
SECTION 2.13. Subchapter H, Chapter 2302, Occupations Code,
is amended by adding Section 2302.355 to read as follows:
Sec. 2302.355. CEASE AND DESIST ORDER. If it appears to the
board that a person who is not licensed under this chapter is
violating this chapter or a rule or order adopted under this
chapter, the board, after notice and opportunity for a hearing, may
issue a cease and desist order prohibiting the person from engaging
in the activity.
SECTION 2.14. Section 503.029, Transportation Code, is
amended by adding Subsection (d) to read as follows:
(d) The department by rule shall:
(1) establish education and training requirements, to
be provided by an education and training program approved by the
department, for an applicant for an original or renewal general
distinguishing number who proposes to be an independent motor
vehicle dealer; and
(2) require the applicant under Subdivision (1) to
establish that the applicant completed the education and training
required under that subdivision.
SECTION 2.15. Subchapter F, Chapter 643, Transportation
Code, is amended by adding Section 643.257 to read as follows:
Sec. 643.257. REFUND BY MOTOR CARRIERS TRANSPORTING
HOUSEHOLD GOODS. The department may order a motor carrier that
violates this chapter or a rule or order adopted under this chapter
to pay a refund to a consumer who paid the motor carrier to
transport household goods.
SECTION 2.16. Sections 2301.264(c), 2301.358(a),
2302.001(6), 2302.102, and 2302.107, Occupations Code, are
repealed.
SECTION 2.17. (a) The changes in law made by this Act to
Chapters 2301 and 2302, Occupations Code, do not affect the
validity of a proceeding pending before a court or other
governmental entity on the effective date of this Act.
(b) An offense or other violation of law committed before
the effective date of this Act is governed by the law in effect when
the offense or violation was committed, and the former law is
continued in effect for that purpose. For purposes of this
subsection, an offense or violation was committed before the
effective date of this Act if any element of the offense or
violation occurred before that date.
(c) On the effective date of this Act, a representative's
license issued under Chapter 2301, Occupations Code, as that law
existed immediately before the effective date of this Act, expires.
(d) On the effective date of this Act, a salvage vehicle
agent license issued under former Section 2302.107, Occupations
Code, expires.
(e) Section 2302.151(a), Occupations Code, as amended by
this Act, applies only to a license issued or renewed on or after
September 1, 2019. A license issued or renewed before that date is
governed by the law in effect immediately before the effective date
of this Act, and the former law is continued in effect for that
purpose.
ARTICLE 3. REGISTRATION AND TITLING
SECTION 3.01. Section 520.004, Transportation Code, is
amended to read as follows:
Sec. 520.004. DEPARTMENT RESPONSIBILITIES. The department
has jurisdiction over the registration and titling of, and the
issuance of license plates to, motor vehicles in compliance with
the applicable statutes. The department by rule:
(1) shall provide services that are reasonable,
adequate, and efficient;
(2) shall establish standards for uniformity and
service quality for counties and dealers licensed under Section
520.005; [and]
(3) may conduct public service education campaigns
related to the department's functions; and
(4) shall establish a risk-based system of monitoring
and preventing fraudulent activity related to vehicle registration
and titling in order to efficiently allocate resources and
personnel.
SECTION 3.02. Section 520.005, Transportation Code, is
amended by adding Subsection (e) to read as follows:
(e) Each county assessor-collector shall make available to
motor vehicle dealers the electronic system designed by the
department that allows a motor vehicle dealer to submit a title and
registration application online in the name of the purchaser of a
motor vehicle.
SECTION 3.03. Subchapter A, Chapter 520, Transportation
Code, is amended by adding Sections 520.0075, 520.010, and 520.011
to read as follows:
Sec. 520.0075. CONTRACTING STANDARDS FOR TAX
ASSESSOR-COLLECTOR. (a) In this section, "deputy" means a deputy
classified as a full service deputy by a board rule adopted under
Section 520.0071.
(b) Notwithstanding Section 262.023, Local Government Code,
a county tax assessor-collector who awards a contract to a deputy
for the performance of registration and titling services must
comply with standard state contracting practices as if the county
tax assessor-collector were a state agency, including requirements
related to:
(1) purchase methods and competitive bidding under
Sections 2155.062 and 2155.063, Government Code;
(2) determining the best value for the county under
Sections 2155.074, 2155.075, and 2155.0755, Government Code;
(3) contracting standards and oversight under Chapter
2261, Government Code; and
(4) contract management under Chapter 2262,
Government Code.
(c) A contract described by Subsection (b) must:
(1) specify an expiration date and renewal or
extension terms for the contract; and
(2) include performance criteria and measures
necessary to evaluate the performance of the deputy under the
contract.
(d) A county tax assessor-collector shall monitor and
evaluate the performance of a deputy awarded a contract described
by this section and use that information in determining whether to
renew or extend the contract or award a new contract.
Sec. 520.010. AUDIT AND INVESTIGATION RELATED TO
REGISTRATION AND TITLING SERVICES. (a) The department may:
(1) audit or perform a compliance review of a person
performing registration or titling services;
(2) investigate any provision of state functions
related to registration or titling; and
(3) access any records needed to conduct the audit,
compliance review, or investigation.
(b) A county tax assessor-collector may:
(1) audit, perform a compliance review of, or
investigate a person providing registration or titling services in
the county in which the assessor-collector is located; and
(2) access any records needed to conduct the audit,
compliance review, or investigation.
(c) The department's authority under Subsection (a) is not
limited by a similar audit, compliance review, or investigation
conducted by a county tax assessor-collector under Subsection (b).
Sec. 520.011. AUDIT OF COUNTY TAX ASSESSOR-COLLECTOR. The
comptroller, in coordination with the department, may include, as
part of the comptroller's regular audits of state revenue
collection by county tax assessor-collector offices, the review of
processes relating to a county's collection and remittance of
revenue included in an audit.
SECTION 3.04. Chapter 520, Transportation Code, is amended
by adding Subchapter C to read as follows:
SUBCHAPTER C. AUTOMATED REGISTRATION AND TITLING SYSTEM
Sec. 520.021. RULES AND POLICIES. The department may adopt
rules and policies for the maintenance and use of the department's
automated registration and titling system.
Sec. 520.022. ACCESS TO SYSTEM. The department has the sole
authority to determine access to the department's automated
registration and titling system.
Sec. 520.023. TRAINING. (a) The department shall
implement a training program providing information on the:
(1) department's automated registration and titling
system; and
(2) identification of fraudulent activity related to
vehicle registration and titling.
(b) The department shall require a person performing
registration or titling services to complete the training under
Subsection (a).
SECTION 3.05. (a) Each county tax assessor-collector who
has, before the effective date of this Act, entered into a contract
described by Section 520.0075, Transportation Code, as added by
this Act, shall rebid the contract using the contracting standards
provided under that section not later than March 31, 2020.
(b) In order to assist a county tax assessor-collector in
the rebidding of contracts under Subsection (a) of this section,
the Texas Department of Motor Vehicles shall provide guidance and
recommendations on contracting practices to the county tax
assessor-collector.
SECTION 3.06. Not later than December 1, 2019, the Texas
Department of Motor Vehicles shall adopt rules to implement the
training program required by Section 520.023, Transportation Code,
as added by this Act.
SECTION 3.07. Not later than March 1, 2020, the Texas
Department of Motor Vehicles shall, in coordination with county tax
assessor-collectors and in accordance with Subchapter C, Chapter
520, Transportation Code, as added by this Act, develop, adopt, and
implement rules that create clear criteria for the suspension or
denial of access to the department's automated registration and
titling system if a county tax assessor-collector suspects abuse,
fraud, or waste relating to the system by an employee of the
assessor-collector's or a person deputized under Section 520.0071,
Transportation Code.
SECTION 3.08. Not later than September 1, 2020, each county
tax assessor-collector shall make available the electronic system
to motor vehicle dealers as required by Section 520.005(e),
Transportation Code, as added by this Act.
ARTICLE 4. MOTOR VEHICLE CRIME PREVENTION AUTHORITY
SECTION 4.01. Subtitle M, Title 7, Transportation Code, is
amended by adding Chapter 1006, and a heading is added to that
chapter to read as follows:
CHAPTER 1006. MOTOR VEHICLE CRIME PREVENTION AUTHORITY
SECTION 4.02. Chapter 1006, Transportation Code, as added
by this Act, is amended by adding Subchapter A, and a heading is
added to that subchapter to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS
SECTION 4.03. Section 1, Article 4413(37), Revised
Statutes, as amended by Chapters 308 (H.B. 1887) and 927 (H.B.
3225), Acts of the 80th Legislature, Regular Session, 2007, is
transferred to Subchapter A, Chapter 1006, Transportation Code, as
added by this Act, redesignated as Section 1006.001, Transportation
Code, reenacted, and amended to read as follows:
Sec. 1006.001 [1]. DEFINITIONS. In this chapter [article]:
(1) "Authority" means the Motor Vehicle Crime
[Automobile Burglary and Theft] Prevention Authority.
(2) "Economic motor vehicle theft" means motor vehicle
burglary or theft committed for financial gain.
(3) "Insurer" means any insurance company writing any
form of motor vehicle insurance in this state, including an
interinsurance or reciprocal exchange, mutual company, mutual
association, or Lloyd's plan ["Department" means the Texas
Department of Motor Vehicles].
(4) ["Director" means the executive director of the
Texas Department of Transportation.
[(5)] "Motor vehicle" means a self-propelled vehicle
or a vehicle, trailer, or semitrailer designed for use with a
self-propelled vehicle. The term does not include a vehicle that
runs exclusively on fixed rails or tracks or a piece of equipment
operated solely on private property.
(5) "Motor vehicle burglary or theft" includes
economic motor vehicle theft.
SECTION 4.04. Section 2, Article 4413(37), Revised
Statutes, is transferred to Subchapter A, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.002, Transportation Code, and amended to read as follows:
Sec. 1006.002 [2]. ESTABLISHMENT. The Motor Vehicle Crime
[Automobile Burglary and Theft] Prevention Authority is
established in the department [Texas Department of Motor Vehicles].
The authority is not an advisory body to the department [Texas
Department of Motor Vehicles].
SECTION 4.05. Chapter 1006, Transportation Code, as added
by this Act, is amended by adding Subchapter B, and a heading is
added to that subchapter to read as follows:
SUBCHAPTER B. COMPOSITION AND ADMINISTRATION
SECTION 4.06. Sections 3(a), (b), (c), (d), (i), (j), and
(k), Article 4413(37), Revised Statutes, are transferred to
Subchapter B, Chapter 1006, Transportation Code, as added by this
Act, redesignated as Sections 1006.051 and 1006.052,
Transportation Code, and amended to read as follows:
Sec. 1006.051. AUTHORITY MEMBERSHIP. (a) The authority is
composed of seven members.
(b) The governor, with the advice and consent of the senate,
shall appoint the following six members:
(1) two representatives of motor vehicle insurance
consumers;
(2) two representatives of insurance companies
writing motor vehicle insurance in this state; and
(3) two representatives of law enforcement.
(c) The public safety director of the Department of Public
Safety or the director's designee serves ex officio as the seventh
member of the authority.
(d) Appointments to the authority shall be made without
regard to race, color, disability, sex, religion, age, or national
origin of the appointees.
Sec. 1006.052. ELIGIBILITY RESTRICTIONS. (a) [(i)] A
person is not eligible for appointment as a representative of motor
vehicle insurance consumers under Section 1006.051(b)(1)
[Subsection (b)(1) of this section] if the person or the person's
spouse:
(1) is registered, certified, or licensed by an
occupational regulatory agency in the field of motor vehicle
insurance or law enforcement;
(2) is an officer, employee, or paid consultant of a
Texas trade association in the field of motor vehicle insurance or
law enforcement;
(3) is employed by or participates in the management
of a business entity or other organization receiving funds from the
authority;
(4) owns or controls, directly or indirectly, more
than a 10 percent [10-percent] interest in a business entity or
other organization receiving funds from the authority; or
(5) uses or receives a substantial amount of tangible
goods, services, or funds from the authority, other than
reimbursement authorized by law for service on the board of the
authority.
(b) [(j)] For purposes of Subsection (a)(2) [(i)(2) of this
section], "[a] Texas trade association" means [is] a nonprofit,
cooperative, and voluntarily joined association of business or
professional competitors in this state designed to assist the
association's [its] members and the members' [its] industry or
profession in dealing with mutual business or professional problems
and in promoting the members' [their] common interest.
(c) [(k)] A person may not serve as a member of the
authority [or act as the general counsel to the authority] if the
person is required to register as a lobbyist under Chapter 305,
Government Code, because of the person's activities for
compensation on behalf of a profession related to [law enforcement
or] motor vehicle insurance or law enforcement.
SECTION 4.07. Section 3(e), Article 4413(37), Revised
Statutes, is transferred to Subchapter B, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.053, Transportation Code, and amended to read as follows:
Sec. 1006.053. TERM OF OFFICE; VACANCY. (a) [(e)] The six
members of the authority appointed by the governor serve staggered
six-year terms, with the terms of two members expiring February 1 of
each odd-numbered year.
(b) If there is a vacancy during a term, the governor shall
appoint a replacement who meets the requirements of the vacant
office to fill the unexpired term.
SECTION 4.08. Section 5(a), Article 4413(37), Revised
Statutes, is transferred to Subchapter B, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.054, Transportation Code, and amended to read as follows:
Sec. 1006.054. PRESIDING OFFICER. [(a)] The governor
shall designate a member of the authority as the presiding officer
of the authority to serve in that capacity at the pleasure of the
governor.
SECTION 4.09. Sections 3(f), (g), (h), and (l), Article
4413(37), Revised Statutes, are transferred to Subchapter B,
Chapter 1006, Transportation Code, as added by this Act,
redesignated as Sections 1006.055 and 1006.056, Transportation
Code, and amended to read as follows:
Sec. 1006.055. GROUNDS FOR REMOVAL. (a) [(f)] It is a
ground for removal from the authority if a member:
(1) does not have at the time of appointment the
qualifications required by Section 1006.051(b) [Subsection (b)] or
is disqualified under Section 1006.052 [Subsection (i) or (k) of
this section];
(2) does not maintain during service on the authority
the qualifications required by Section 1006.051(b) [Subsection
(b)] or becomes disqualified under Section 1006.052 [Subsection (i)
or (k) of this section];
(3) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term [for which the member is appointed]; or
(4) is absent from more than half of the regularly
scheduled authority meetings that the member is eligible to attend
during a calendar year.
(b) [(g)] The validity of an action of the authority is not
affected by the fact that it is taken when a ground for removal of a
member of the authority exists.
(c) [(h)] If the executive director has knowledge that a
potential ground for removal exists, the executive director shall
notify the presiding officer of the authority of the potential
ground. The presiding officer shall then notify the governor and
the attorney general that a potential ground for removal exists. If
the potential ground for removal involves the presiding officer,
the executive director shall notify the next highest officer of the
authority, who shall notify the governor and the attorney general
that a potential ground for removal exists.
Sec. 1006.056. INFORMATION ON QUALIFICATIONS AND CONDUCT.
[(l)] The executive director or the executive director's designee
shall provide to members of the authority, as often as necessary,
information regarding the members' [their] qualifications for
office under this chapter [article] and their responsibilities
under applicable laws relating to standards of conduct for state
officers.
SECTION 4.10. Sections 5(c), (d), and (e), Article
4413(37), Revised Statutes, are transferred to Subchapter B,
Chapter 1006, Transportation Code, as added by this Act,
redesignated as Section 1006.057, Transportation Code, and amended
to read as follows:
Sec. 1006.057. MEMBER TRAINING. (a) A [(c) To be eligible
to take office as a member of the authority, a] person who is
appointed to and qualifies for office as a member of the authority
may not vote, deliberate, or be counted as a member in attendance at
a meeting of the authority until the person completes [must
complete at least one course of] a training program that complies
with this section [Subsection (d)].
(b) [(d)] The training program [required by Subsection (c)]
must provide the person with information [to the person] regarding:
(1) the law governing authority operations [enabling
legislation that created the authority and its policymaking body to
which the member is appointed to serve];
(2) the programs, functions, rules, and budget of
[operated by] the authority;
(3) the scope of and limitations on the rulemaking
authority [role and functions] of the authority;
(4) [the rules of the authority and the department;
[(5) the current budget for the authority;
[(6)] the results of the most recent formal audit of
the authority;
(5) [(7)] the requirements of [the]:
(A) laws relating to open meetings, public
information, [law, Chapter 551, Government Code;
[(B) open records law, Chapter 552, Government
Code; and
[(C)] administrative procedure [law], and
disclosure of conflicts of interest; and
(B) other laws applicable to members of the
authority in performing their duties [Chapter 2001, Government
Code;
[(8) the requirements of the conflict-of-interest
laws and other laws relating to public officials]; and
(6) [(9)] any applicable ethics policies adopted by
the department or the Texas Ethics Commission.
(c) [(e)] A person appointed to the authority is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program,
regardless of whether the attendance at the program occurs before
or after [required by Subsection (c) as provided by the General
Appropriations Act and as if] the person qualifies for office [were
a member of the authority].
(d) The executive director shall create a training manual
that includes the information required by Subsection (b). The
executive director shall distribute a copy of the training manual
annually to each member of the authority. Each member of the
authority shall sign and submit to the executive director a
statement acknowledging that the member received and has reviewed
the training manual.
SECTION 4.11. Section 4, Article 4413(37), Revised
Statutes, is transferred to Subchapter B, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.058, Transportation Code, and amended to read as follows:
Sec. 1006.058 [4]. REIMBURSEMENT FOR EXPENSES. A member of
the authority is not entitled to compensation for service on the
authority but is entitled to reimbursement for expenses incurred in
performing the member's duties at the rate provided by [in] the
General Appropriations Act.
SECTION 4.12. Sections 6(e), (f), and (g), Article
4413(37), Revised Statutes, are transferred to Subchapter B,
Chapter 1006, Transportation Code, as added by this Act,
redesignated as Sections 1006.059 and 1006.060, Transportation
Code, and amended to read as follows:
Sec. 1006.059. PERSONNEL AND SERVICES. (a) [(e)] The
authority may be provided various services only by or through the
department as needed to carry out the authority's [its] purposes,
powers, and duties. These services may include[, but are not
limited to,] legal services not provided by the attorney general,
fiscal services, administrative services, and personnel services.
[Except as provided by this section, the authority may enter into
contracts in its own name and on its own behalf with recipients of
grants for purposes of this article.]
(b) [(f)] The department shall provide personnel and
services to the authority as agreed by the authority and the
department.
Sec. 1006.060. DIVISION OF RESPONSIBILITIES. [(g)] The
authority shall, in coordination with the department, develop and
implement policies that clearly separate the policymaking
responsibilities of the authority and the management
responsibilities of the department.
SECTION 4.13. Section 5(b), Article 4413(37), Revised
Statutes, is transferred to Subchapter B, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.061, Transportation Code, and amended to read as follows:
Sec. 1006.061. MEETINGS. [(b)] The authority shall meet
at the call of the presiding officer [chairman] or at the call of
four members.
SECTION 4.14. Section 6(h), Article 4413(37), Revised
Statutes, is transferred to Subchapter B, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.062, Transportation Code, and amended to read as follows:
Sec. 1006.062. PUBLIC TESTIMONY. [(h)] The authority
shall develop and implement policies that provide the public with a
reasonable opportunity to appear before the authority and to speak
on any issue under the [its] jurisdiction of the authority.
SECTION 4.15. Subchapter B, Chapter 1006, Transportation
Code, as added by this Act, is amended by adding Section 1006.063 to
read as follows:
Sec. 1006.063. LOBBYIST PROHIBITION: GENERAL COUNSEL. A
person may not act as the general counsel to the authority if the
person is required to register as a lobbyist under Chapter 305,
Government Code, because of the person's activities for
compensation on behalf of a profession related to motor vehicle
insurance or law enforcement.
SECTION 4.16. Chapter 1006, Transportation Code, as added
by this Act, is amended by adding Subchapter C, and a heading is
added to that subchapter to read as follows:
SUBCHAPTER C. POWERS AND DUTIES
SECTION 4.17. Sections 6(a), (b), (c), and (d), Article
4413(37), Revised Statutes, are transferred to Subchapter C,
Chapter 1006, Transportation Code, as added by this Act,
redesignated as Section 1006.101, Transportation Code, and amended
to read as follows:
Sec. 1006.101. GENERAL POWERS AND DUTIES. (a) The
authority shall adopt rules to implement the authority's [its]
powers and duties.
(b) The authority may solicit and accept gifts and grants.
(c) The authority may only use [only] staff of the
department and may delegate authority to the staff as needed.
(d) Not later than April 1 of each year, the authority shall
report on the authority's [its] activities to the lieutenant
governor and the speaker of the house of representatives.
SECTION 4.18. Section 7, Article 4413(37), Revised
Statutes, as amended by Chapters 308 (H.B. 1887) and 927 (H.B.
3225), Acts of the 80th Legislature, Regular Session, 2007, is
transferred to Subchapter C, Chapter 1006, Transportation Code, as
added by this Act, redesignated as Section 1006.102, Transportation
Code, reenacted, and amended to read as follows:
Sec. 1006.102 [7]. PLAN OF OPERATION. (a) The authority
shall develop and implement a plan of operation. The plan of
operation must be updated biennially and filed with the legislature
not later than [on or before] December 1 of each even-numbered year.
(b) The plan of operation must include:
(1) an assessment of the scope of the problems of motor
vehicle burglary or theft and fraud-related motor vehicle crime
[economic motor vehicle theft], including particular areas of the
state where the problems are greatest;
(2) an analysis of various methods of combating the
problems of motor vehicle burglary or theft and fraud-related motor
vehicle crime [economic motor vehicle theft];
(3) a plan for providing financial support to combat
motor vehicle burglary or theft and fraud-related motor vehicle
crime [economic motor vehicle theft]; and
(4) an estimate of the funds required to implement the
plan of operation.
SECTION 4.19. Section 12, Article 4413(37), Revised
Statutes, is transferred to Subchapter C, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.103, Transportation Code, and amended to read as follows:
Sec. 1006.103 [12]. ADVISORY COMMITTEES. (a) The
authority may establish advisory committees to advise the authority
[it] on any matter under the jurisdiction of the authority.
(b) Section 2110.008, Government Code, does not apply to an
advisory committee established under this section if the advisory
committee is:
(1) established for a specific and immediate need; and
(2) dissolved before the first anniversary of the date
the committee is created.
(c) A member of an advisory committee may not be compensated
by the authority for committee service but is entitled to
reimbursement for actual and necessary expenses incurred in the
performance of committee service.
SECTION 4.20. Chapter 1006, Transportation Code, as added
by this Act, is amended by adding Subchapter D, and a heading is
added to that subchapter to read as follows:
SUBCHAPTER D. FINANCIAL PROVISIONS
SECTION 4.21. Sections 6(j) and (k), Article 4413(37),
Revised Statutes, are transferred to Subchapter D, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.151, Transportation Code, and amended to read as follows:
Sec. 1006.151. GRANTS. (a) Subject to the requirements of
this section, the authority may enter into contracts in the
authority's own name and on the authority's own behalf with
recipients of grants for purposes of this chapter.
(b) [(j)] The authority shall:
(1) develop and periodically update [use] standard
performance measures for each category of grants provided by the
authority for use in [order to] assessing [assess] grantee success
in achieving the purposes of this chapter [article]; and
(2) ensure that grants are used to help increase:
(A) the recovery rate of stolen motor vehicles;
(B) the clearance rate of:
(i) motor vehicle burglaries and thefts;
and
(ii) fraud-related motor vehicle crimes;
and
(C) the number of persons arrested for motor
vehicle burglary and theft and fraud-related motor vehicle crime.
(c) [(k)] The authority shall allocate grant funds
primarily based on the number of motor vehicles stolen in, or the
motor vehicle burglary or theft rate across, and the number of
fraud-related motor vehicle crimes committed in the state rather
than based on geographic distribution.
(d) The authority shall, in consultation with the
department, annually update the performance measures developed
under Subsection (b).
SECTION 4.22. Sections 6A and 10, Article 4413(37), Revised
Statutes, are transferred to Subchapter D, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Sections
1006.152 and 1006.153, Transportation Code, and amended to read as
follows:
Sec. 1006.152 [6A]. REFUNDS [POWER TO REFUND]. (a) The
authority may make determinations regarding the sufficiency of
payments made by an ["]insurer[" (as defined under Section 10 of
this article)] of fees collected under [pursuant to] Section
1006.153 [10 of this article].
(b) Pursuant to a [such] determination made under
Subsection (a), the authority may:
(1) notify the comptroller that payments made by an
insurer are sufficient; and
(2) request the comptroller to draw warrants on the
funds available to the authority for the purpose of refunding money
[monies] to an insurer.
(c) The authority shall make the determination under
[Subsection (b) of] this section as follows:
(1) the two members of the authority who are
representatives of insurance companies writing motor vehicle
insurance in this state shall recuse themselves; and
(2) the remaining five members of the authority shall
make the determination by a simple majority vote.
(d) Determinations made under this section shall be
performed in accordance with procedures set forth in rules adopted
by the authority. The question of eligibility for a refund is not a
contested case under [within the meaning of the Administrative
Procedure Act (]Chapter 2001, Government Code[)].
(e) A [Except as provided by Subsection (f), a] request for
a refund made under this section must be made not later than four
years after the date the payment was made to the authority under
Section 1006.153 [10 of this article].
Sec. 1006.153 [10]. FEE IMPOSED ON INSURER. (a) In this
section,[:
[(1) "Insurer" means any insurance company writing any
form of motor vehicle insurance in this state, including an
interinsurance or reciprocal exchange, mutual company, mutual
association, or Lloyd's plan.
[(2)] "motor [Motor] vehicle years of insurance" means
the total number of years or portions of years during which a motor
vehicle is covered by insurance.
(b) An insurer shall pay to the authority a fee equal to $2
multiplied by the total number of motor vehicle years of insurance
for insurance policies delivered, issued for delivery, or renewed
by the insurer. The fee shall be paid not later than:
(1) March 1 of each year for a policy delivered,
issued, [delivered,] or renewed from July 1 through December 31 of
the previous calendar year; and
(2) August 1 of each year for a policy delivered,
issued, [delivered,] or renewed from January 1 through June 30 of
that year.
(c) The fee imposed by this section is in addition to any
other fee or tax imposed by law on an insurer.
(d) The authority shall notify the Texas Department [State
Board] of Insurance of any insurer that fails to pay the fee
required by this section, and the Texas Department of Insurance
[board] may for that reason revoke the insurer's certificate of
authority.
(e) Fifty percent of each fee collected under Subsection (b)
may be appropriated only to the authority for the purposes of this
chapter [article].
SECTION 4.23. Section 8, Article 4413(37), Revised
Statutes, as amended by Chapters 308 (H.B. 1887) and 927 (H.B.
3225), Acts of the 80th Legislature, Regular Session, 2007, is
transferred to Subchapter D, Chapter 1006, Transportation Code, as
added by this Act, redesignated as Section 1006.154, Transportation
Code, reenacted, and amended to read as follows:
Sec. 1006.154 [8]. USE OF APPROPRIATED FUNDS. (a) Money
appropriated to the department for authority purposes shall be used
by the authority to pay the department for administrative costs and
to achieve the purposes of this chapter [article], including:
(1) [establishing and funding the motor vehicle
registration program required by Section 9 of this article;
[(2)] providing financial support to law enforcement
agencies for economic motor vehicle theft and fraud-related motor
vehicle crime enforcement teams;
(2) [(3)] providing financial support to law
enforcement agencies, local prosecutors, judicial agencies, and
neighborhood, community, business, and nonprofit organizations for
programs designed to reduce the incidence of economic motor vehicle
theft and fraud-related motor vehicle crime;
(3) [(4)] conducting educational programs designed to
inform motor vehicle owners of methods of preventing motor vehicle
burglary or theft and fraud-related motor vehicle crime;
(4) [(5)] providing equipment, for experimental
purposes, to assist motor vehicle owners in preventing motor
vehicle burglary or theft; and
(5) [(6)] establishing a uniform program to prevent
stolen motor vehicles from entering Mexico.
(b) In any fiscal year, the amount of the administrative
expenses of the authority, including salaries, travel and marketing
expenses, and other overhead expenses may not exceed eight percent
of the total expenditures of the authority.
(c) The cost of personnel and services provided to the
authority by the department and by the attorney general may be paid
only from appropriations made for authority purposes.
Appropriations made for authority purposes may not be used for any
other purpose.
SECTION 4.24. Section 6(i), Article 4413(37), Revised
Statutes, is transferred to Subchapter D, Chapter 1006,
Transportation Code, as added by this Act, redesignated as Section
1006.155, Transportation Code, and amended to read as follows:
Sec. 1006.155. ANNUAL FINANCIAL REPORT. [(i)] The
authority shall prepare annually a complete and detailed written
report accounting for all funds received and disbursed by the
authority during the preceding fiscal year. The annual report must
meet the reporting requirements applicable to financial reporting
provided by [in] the General Appropriations Act.
SECTION 4.25. Section 981.073(b), Insurance Code, is
amended to read as follows:
(b) A domestic surplus lines insurer is not subject to:
(1) Section 38.003;
(2) Chapter 462;
(3) Chapter 463;
(4) Chapter 501;
(5) Section 981.051;
(6) Section 981.101(b);
(7) Chapter 2007;
(8) Chapter 2301;
(9) Chapter 2251; and
(10) Chapter 1006, Transportation Code [Article
4413(37), Revised Statutes].
SECTION 4.26. Section 201.805(a), Transportation Code, is
amended to read as follows:
(a) The department shall annually publish in appropriate
media and on the department's Internet website in a format that
allows the information to be read into a commercially available
electronic database a statistical comparison of department
districts and the following information, calculated on a per capita
basis considering the most recent census data and listed for each
county and for the state for each fiscal year:
(1) the number of square miles;
(2) the number of vehicles registered;
(3) the population;
(4) daily vehicle miles;
(5) the number of centerline miles and lane miles;
(6) construction, maintenance, and contracted routine
and preventive maintenance expenditures;
(7) combined construction, maintenance, and
contracted routine and preventive maintenance expenditures;
(8) the number of district and division office
construction and maintenance employees;
(9) information regarding grant programs, including:
(A) Motor Vehicle Crime [Automobile Theft]
Prevention Authority grants;
(B) Routine Airport Maintenance Program grants;
(C) Public Transportation Grant Program grants;
(D) Medical Transportation Program grants; and
(E) aviation grants or aviation capital
improvement grants;
(10) approved State Infrastructure Bank loans;
(11) Texas Traffic Safety Program grants and
expenditures;
(12) the dollar amount of any pass-through toll
agreements;
(13) the percentage of highway construction projects
completed on time;
(14) the percentage of highway construction projects
that cost:
(A) more than the contract amount; and
(B) less than the contract amount; and
(15) a description of real property acquired by the
department through the exercise of eminent domain, including the
acreage of the property and the location of the property.
SECTION 4.27. Section 1001.151(c), Transportation Code, is
amended to read as follows:
(c) Money appropriated to the department for Motor Vehicle
Crime [Automobile Burglary and Theft] Prevention Authority
purposes and other revenue collected or received by the Motor
Vehicle Crime [Automobile Burglary and Theft] Prevention Authority
may not be deposited into the fund.
SECTION 4.28. The following provisions are repealed:
(1) Sections 9 and 11, Article 4413(37), Revised
Statutes;
(2) the headings to Sections 3, 5, and 6, Article
4413(37), Revised Statutes; and
(3) the heading to Article 4413(37), Revised Statutes.
SECTION 4.29. (a) Except as provided by Subsection (b) of
this section, Section 1006.057, Transportation Code, as
transferred, redesignated, and amended by this Act, applies to a
person who is appointed before, on, or after the effective date of
this Act to the Automobile Burglary and Theft Prevention Authority
or Motor Vehicle Crime Prevention Authority, as applicable.
(b) A member of the Motor Vehicle Crime Prevention Authority
who, before the effective date of this Act, completed the training
program required by Sections 5(c), (d), and (e), Article 4413(37),
Revised Statutes, as that law existed before the effective date of
this Act, is required to complete additional training only on
subjects added by this Act to the training program as required by
Section 1006.057, Transportation Code, as transferred,
redesignated, and amended by this Act. A member described by this
subsection may not vote, deliberate, or be counted as a member in
attendance at a meeting of the authority held on or after December
1, 2019, until the member completes the additional training.
SECTION 4.30. (a) On the effective date of this Act:
(1) the name of the Automobile Burglary and Theft
Prevention Authority is changed to the Motor Vehicle Crime
Prevention Authority, and all powers, duties, rights, and
obligations of the Automobile Burglary and Theft Prevention
Authority are the powers, duties, rights, and obligations of the
Motor Vehicle Crime Prevention Authority;
(2) a member of the Automobile Burglary and Theft
Prevention Authority is a member of the Motor Vehicle Crime
Prevention Authority; and
(3) any appropriation for the Automobile Burglary and
Theft Prevention Authority is an appropriation for the Motor
Vehicle Crime Prevention Authority.
(b) On and after the effective date of this Act, a reference
in law to the Automobile Burglary and Theft Prevention Authority is
a reference to the Motor Vehicle Crime Prevention Authority.
(c) The Motor Vehicle Crime Prevention Authority is the
authority formerly known as the Automobile Burglary and Theft
Prevention Authority in all respects. All personnel, equipment,
data, documents, facilities, contracts, items, other property,
rules, decisions, and proceedings of or involving the Automobile
Burglary and Theft Prevention Authority are unaffected by the
change in the name of the authority.
ARTICLE 5. STUDY ON IMPOSING FEES ON ALTERNATIVELY FUELED VEHICLES
SECTION 5.01. DEFINITIONS. In this article:
(1) "Alternatively fueled vehicle" has the meaning
assigned by Section 502.004, Transportation Code.
(2) "Conventional vehicle" means a vehicle, as defined
by Section 502.001, Transportation Code, that is exclusively
powered by gasoline or diesel fuel.
(3) "Motor fuel taxes" means the motor fuel taxes
imposed under Chapter 162, Tax Code.
(4) "Vehicle miles traveled" means the number of miles
traveled by a vehicle.
SECTION 5.02. STUDY AND REPORT. (a) Using existing funds,
the Texas Department of Motor Vehicles and the Texas Department of
Transportation shall jointly contract with a third-party
contractor to conduct a study and create a report on the feasibility
and advisability of a program to establish a fee for alternatively
fueled vehicles similar to the motor fuel taxes imposed on
conventional vehicles.
(b) The study must:
(1) review other state or federal laws regarding fees
and taxes for alternatively fueled vehicles and whether those laws
reduced tax revenue generated from motor fuels, including:
(A) whether other states measure the vehicle
miles traveled of alternatively fueled vehicles to calculate any
fees or taxes; and
(B) the methods used to calculate the vehicle
miles traveled under Paragraph (A);
(2) calculate the revenue generated from motor fuel
taxes for each mile traveled by a vehicle in this state;
(3) calculate the total amount of vehicle fees and
taxes that drivers of alternatively fueled vehicles pay compared
with the total amount of vehicle fees and taxes drivers of
conventional vehicles pay, and calculate the net revenue generated
by each;
(4) determine whether a correlation exists between the
market penetration of alternatively fueled vehicles and the
decrease in revenue from motor fuel taxes;
(5) compile and analyze all available sources of data
related to the vehicle miles traveled for alternatively fueled
vehicles in this state;
(6) determine whether the Department of Public Safety
of the State of Texas should collect information on the vehicle
miles traveled for an alternatively fueled vehicle during the
vehicle's annual inspection under Chapter 548, Transportation
Code;
(7) determine a method, in measuring vehicle miles
traveled, to distinguish between different types of alternatively
fueled vehicles, including hybrid vehicles, as defined by Section
382.003, Health and Safety Code, and conventional vehicles at
annual inspections under Chapter 548, Transportation Code;
(8) determine the feasibility of implementing a
program that imposes a fee based on vehicle miles traveled by
alternatively fueled vehicles to be deposited to the state highway
fund, including:
(A) the cost of implementing the program to
drivers of alternatively fueled vehicles and to the state;
(B) whether the vehicle miles traveled measured
by the program should include miles traveled outside this state;
(C) whether vehicle weight should be a factor in
calculating the fee;
(D) the appropriate state agency to administer
the program; and
(E) the appropriate methods of and schedule for
payment for the fee imposed under the program; and
(9) calculate the feasibility and determine the
consequences of abolishing motor fuel taxes and replacing those
taxes with a fee based on vehicle miles traveled for all vehicles,
including:
(A) calculating the total amount in fees the
average driver would be required to pay to ensure that the state
does not lose the revenue it derives from motor fuel taxes; and
(B) comparing any potential negative effects
from imposing a fee based on vehicle miles traveled for all vehicles
and any current negative effects from imposing motor fuel taxes.
(c) Not later than December 1, 2020, the Texas Department of
Motor Vehicles and the Texas Department of Transportation shall
jointly submit to the governor, lieutenant governor, speaker of the
house of representatives, and members of the legislature the report
created under Subsection (a) of this section that includes a
summary of the results of the study conducted under that subsection
and any legislative recommendations based on the study.
SECTION 5.03. EXPIRATION DATE. This article expires
September 1, 2021.
ARTICLE 6. EFFECTIVE DATE
SECTION 6.01. This Act takes effect September 1, 2019.