By: Hall S.B. No. 1713 A BILL TO BE ENTITLED AN ACT relating to the elimination of regular mandatory vehicle safety inspections and the imposition of replacement fees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 382.0622(a), Health and Safety Code, is amended to read as follows: (a) Clean Air Act fees consist of: (1) fees collected by the commission under Sections 382.062, 382.0621, 382.202, and 382.302 and as otherwise provided by law; (2) [$2 from the portion of] each fee collected under Section 502.360 [for inspections of vehicles other than mopeds and remitted to the state under Sections 548.501 and 548.503], Transportation Code; and (3) fees collected that are required under Section 185 of the federal Clean Air Act (42 U.S.C. Section 7511d). SECTION 2. Section 382.202, Health and Safety Code, is amended by amending Subsection (d) and adding Subsection (e-1) to read as follows: (d) On adoption of a resolution by the commission and after proper notice, the Department of Public Safety of the State of Texas shall implement a system that requires, [as a condition of obtaining a passing vehicle inspection report 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, Chapter 548, Transportation Code [of that chapter], that a motor vehicle registered in this state [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 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-1) The portion of a fee imposed under Subsection (e) that is not authorized to be retained by an inspection station must be collected as provided by Section 502.361. SECTION 3. Section 382.203(c), Health and Safety Code, is amended to read as follows: (c) The 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 is driven an average of fewer than 5,000 miles each year [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 386.251(c), Health and Safety Code, is amended to read as follows: (c) The fund consists of: (1) the amount of money deposited to the credit of the fund under: (A) Section 386.056; (B) Sections 151.0515 and 152.0215, Tax Code; and (C) Sections 501.138 and[,] 502.358[, and 548.5055], Transportation Code; and (2) grant money recaptured under Section 386.111(d) and Chapter 391. SECTION 5. Section 502.092(c), Transportation Code, is amended to read as follows: (c) A person may obtain a permit under this section by: (1) applying to the department in a manner prescribed by the department; (2) paying a fee equal to 1/12 the registration fee prescribed by this chapter for the vehicle; (3) furnishing satisfactory evidence that the motor vehicle is insured under an insurance policy that complies with Section 601.072 and that is written by: (A) an insurance company or surety company authorized to write motor vehicle liability insurance in this state; or (B) with the department's approval, a surplus lines insurer that meets the requirements of Chapter 981, Insurance Code, and rules adopted by the commissioner of insurance under that chapter, if the applicant is unable to obtain insurance from an insurer described by Paragraph (A); and (4) furnishing evidence that the vehicle has been inspected if [as] required under Chapter 548. SECTION 6. Section 502.094(e), Transportation Code, is amended to read as follows: (e) A vehicle issued a permit under this section is subject to [Subchapters B and F,] Chapter 548, unless the vehicle: (1) is registered in another state of the United States, in a province of Canada, or in a state of the United Mexican States; or (2) is mobile drilling or servicing equipment used in the production of gas, crude petroleum, or oil, including a mobile crane or hoisting equipment, mobile lift equipment, forklift, or tug. SECTION 7. Section 502.146(d), Transportation Code, is amended to read as follows: (d) A vehicle described by Subsection (b) is exempt from the inspection requirements of Subchapter [Subchapters B and] F, Chapter 548. SECTION 8. Subchapter G, Chapter 502, Transportation Code, is amended by adding Sections 502.360 and 502.361 to read as follows: Sec. 502.360. INSPECTION PROGRAM REPLACEMENT FEES. (a) In addition to other fees imposed at the time of registration of a motor vehicle, at the time of application for registration or renewal of registration of a motor vehicle, the applicant shall pay an annual fee of: (1) $9.25 for a noncommercial motor vehicle that: (A) is sold in this state or purchased by a commercial fleet buyer described by Section 501.0234(b)(4) for use in this state; (B) has not been previously registered in this or another state; and (C) on the date of sale is of the current model year or preceding model year; (2) $5.50 for a noncommercial motor vehicle that is not a vehicle described by Subdivision (1); and (3) $20 for a commercial motor vehicle. (b) The department or the county tax assessor-collector, as applicable, shall remit the fee collected under Subsection (a) to the comptroller at the time and in the manner prescribed by the comptroller. (c) The comptroller shall deposit fees received under Subsection (a)(1) to the credit of the Texas mobility fund. (d) Out of fees received under Subsection (a)(2), the comptroller shall deposit: (1) $1.85 of each fee to the credit of the clean air account; (2) 15 cents of each fee to the credit of the state highway fund to be used only by the Texas Department of Transportation for safety initiatives; and (3) the remainder of each fee to the credit of the Texas mobility fund. (e) Out of fees received under Subsection (a)(3), the comptroller shall deposit: (1) $10 of each fee to the credit of the Texas mobility fund; and (2) $10 of each fee to the credit of the Texas emissions reduction plan fund. Sec. 502.361. COLLECTION OF EMISSIONS-RELATED INSPECTION FEE. The department or a county tax assessor-collector, as applicable, that registers a motor vehicle that is subject to an emissions-related inspection fee under Section 382.202, Health and Safety Code, or Section 548.505 of this code shall collect the fee at the time of registration of the motor vehicle. The department or county tax assessor-collector shall remit the fee to the comptroller at the time and in the manner prescribed by the comptroller. SECTION 9. Section 545.352(b), Transportation Code, is amended to read as follows: (b) Unless a special hazard exists that requires a slower speed for compliance with Section 545.351(b), the following speeds are lawful: (1) 30 miles per hour in an urban district on a street other than an alley and 15 miles per hour in an alley; (2) except as provided by Subdivision (4), 70 miles per hour on a highway numbered by this state or the United States outside an urban district, including a farm-to-market or ranch-to-market road; (3) except as provided by Subdivision (4), 60 miles per hour on a highway that is outside an urban district and not a highway numbered by this state or the United States; (4) outside an urban district: (A) 60 miles per hour if the vehicle is a school bus that [has passed a commercial motor vehicle inspection under Section 548.201 and] is on a highway numbered by the United States or this state, including a farm-to-market road; or (B) 50 miles per hour if the vehicle is a school bus that[: [(i) has not passed a commercial motor vehicle inspection under Section 548.201; or [(ii)] is traveling on a highway not numbered by the United States or this state; (5) on a beach, 15 miles per hour; or (6) on a county road adjacent to a public beach, 15 miles per hour, if declared by the commissioners court of the county. SECTION 10. Section 547.601, Transportation Code, is amended to read as follows: Sec. 547.601. SAFETY BELTS REQUIRED. A motor vehicle [required by Chapter 548 to be inspected] shall be equipped with front safety belts if safety belt anchorages were part of the manufacturer's original equipment on the vehicle. SECTION 11. The heading to Chapter 548, Transportation Code, is amended to read as follows: CHAPTER 548. [COMPULSORY] INSPECTION OF VEHICLES SECTION 12. Section 548.001(10), Transportation Code, is amended to read as follows: (10) "Vehicle inspection report" means a report issued by an inspector or an inspection station for a vehicle that indicates whether the vehicle has passed an [the safety and, if applicable,] emissions inspection [inspections] required by this chapter. SECTION 13. Section 548.005, Transportation Code, is amended to read as follows: Sec. 548.005. INSPECTION ONLY BY CERTAIN [STATE-CERTIFIED AND SUPERVISED] INSPECTION STATIONS [STATION]. A compulsory inspection under this chapter may be made only by an inspection station, except that the department may: (1) permit inspection to be made by an inspector under terms and conditions the department prescribes; (2) authorize the acceptance in this state of a certificate of inspection and approval issued in another state having a similar inspection law; [and] (3) authorize the acceptance in this state of a certificate of inspection and approval issued in compliance with 49 C.F.R. Part 396 to a motor bus, as defined by Section 502.001, that is registered in this state but is not domiciled in this state; and (4) authorize the acceptance in this state of a certificate of inspection and approval issued: (A) by an inspector qualified under 49 C.F.R. Part 396 acting as an employee or authorized agent of the owner of a commercial fleet, as defined in Section 502.001; and (B) to a commercial motor vehicle that is: (i) part of the fleet; and (ii) registered in this state. SECTION 14. Section 548.006(b), Transportation Code, is amended to read as follows: (b) The members of the 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]; (2) one person to represent manufacturers of motor vehicle emissions inspection devices; (3) one person to represent independent vehicle equipment repair technicians; and (4) one person to represent the public interest. SECTION 15. Section 548.052, Transportation Code, is transferred to Subchapter K, Chapter 547, Transportation Code, redesignated as Section 547.6011, Transportation Code, and amended to read as follows: Sec. 547.6011 [548.052]. VEHICLES NOT REQUIRED TO BE EQUIPPED WITH SAFETY BELTS [SUBJECT TO INSPECTION]. Section 547.601 [This chapter] does not apply to: (1) a trailer, semitrailer, pole trailer, or mobile home moving under or bearing a current factory-delivery license plate or current in-transit license plate; (2) a vehicle moving under or bearing a paper dealer in-transit tag, machinery license, disaster license, parade license, prorate tab, one-trip permit, vehicle temporary transit permit, antique license, custom vehicle license, street rod license, temporary 24-hour permit, or permit license; (3) a trailer, semitrailer, pole trailer, or mobile home having an actual gross weight or registered gross weight of 4,500 pounds or less; (4) farm machinery, road-building equipment, a farm trailer, or a vehicle required to display a slow-moving-vehicle emblem under Section 547.703; (5) a former military vehicle, as defined by Section 504.502; (6) a vehicle qualified for a tax exemption under Section 152.092, Tax Code; or (7) a vehicle for which a certificate of title has been issued but that is not required to be registered. SECTION 16. Section 548.053, Transportation Code, is transferred to Subchapter E, Chapter 548, Transportation Code, redesignated as Section 548.255, Transportation Code, and amended to read as follows: Sec. 548.255 [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 a passing vehicle inspection report 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.] SECTION 17. Section 548.105, Transportation Code, is transferred to Subchapter E, Chapter 548, Transportation Code, and redesignated as Section 548.2521, Transportation Code, to read as follows: Sec. 548.2521 [548.105]. EVIDENCE OF FINANCIAL RESPONSIBILITY AS PREREQUISITE TO ISSUANCE OF PASSING VEHICLE INSPECTION REPORT. (a) An inspection station or inspector may not issue a passing vehicle inspection report 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 Section 1952.054, Insurance Code. (b) An inspection station is not liable to a person, including a third party, for issuing a passing vehicle inspection report 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 18. Section 548.201, Transportation Code, is amended to read as follows: Sec. 548.201. COMMERCIAL MOTOR VEHICLE INSPECTION PROGRAM. [(a)] The commission may [shall] establish an inspection program for commercial motor vehicles only if necessary to comply with [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 19. Subchapter E, Chapter 548, Transportation Code, is amended by adding Section 548.257 to read as follows: Sec. 548.257. TIMING OF INSPECTION FOR REGISTRATION-BASED ENFORCEMENT. The commission shall require a vehicle required to be inspected under this chapter to pass the required inspection: (1) not earlier than 90 days before the date of expiration of the vehicle's registration; or (2) if the vehicle is a used motor vehicle sold by a dealer, as defined by Section 503.001, in the 180 days preceding the date the dealer sells the vehicle. SECTION 20. Section 548.505, Transportation Code, is amended to read as follows: Sec. 548.505. EMISSIONS-RELATED INSPECTION FEE. (a) The department by rule may impose an inspection fee for a vehicle inspected under Section 548.301(a) in addition to a fee adopted under Section 382.202, Health and Safety Code [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) providing inspections; and (2) administering the program. (b) A fee described by Subsection (a) must be collected as provided by Section 502.361. [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 21. Section 548.603(a), Transportation Code, is amended to read as follows: (a) A person commits an offense if the person: (1) presents to an official of this state or a political subdivision of this state a vehicle inspection report or insurance document knowing that the report 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; or (2) [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; or [(3)] knowingly does not comply with an emissions inspection requirement for a vehicle. SECTION 22. Section 548.604(a), Transportation Code, is amended to read as follows: (a) A person commits an offense if the person operates or moves a motor vehicle, trailer, semitrailer, pole trailer, or mobile home, or a combination of those vehicles, that is[: [(1)] equipped in violation of this chapter or a rule adopted under this chapter[; or [(2) in a mechanical condition that endangers a person, including the operator or an occupant, or property]. SECTION 23. The following provisions of the Transportation Code are repealed: (1) the heading to Subchapter B, Chapter 548; (2) Section 548.051; (3) the heading to Subchapter C, Chapter 548; (4) Sections 548.101, 548.102, 548.103, and 548.104; (5) Sections 548.202 and 548.203; (6) Sections 548.301(d) and 548.3045(b); and (7) Sections 548.501, 548.502, 548.503, 548.504, 548.5055, 548.508, and 548.509. SECTION 24. Not later than January 1, 2023, the Department of Public Safety shall submit to the lieutenant governor and the speaker of the house of representatives a report on changes in the department's expenses and income that result from implementing the changes in law required by this Act, including the increase or decrease, if any, of the number of full-time equivalent employees needed to administer Chapters 547 and 548, Transportation Code, between September 1, 2021, and the date the report is prepared. SECTION 25. The change in law made by this Act applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is governed by the law in effect on the date the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date. SECTION 26. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39. Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2021.