BILL ANALYSIS H.B. 3528 By: McQueeney Transportation Committee Report (Unamended) BACKGROUND AND PURPOSE The 88th Texas Legislature enacted both H.B. 3297, which eliminated mandatory vehicle safety inspections for noncommercial vehicles, and S.B. 2102, which provided for initial registration and inspection periods of three years for new rental cars. The bill author has informed the committee that because H.B. 3297 did not reconcile the previously passed provisions of S.B. 2102, the provisions of S.B. 2102 relating to a three-year safety inspection period are still in statute, although they do not apply because vehicle safety inspections are no longer required. H.B. 3528 addresses this issue by repealing these unnecessary statutory provisions and reconciling corresponding statutory references. Provisions of S.B. 2102 relating to the three-year emissions inspection and registration periods for new rental cars still apply. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3528 repeals Transportation Code provisions relating to mandatory vehicle safety inspections for noncommercial vehicles that were amended or added by Acts of the 88th Legislature, Regular Session, 2023, in conflict with another Act of that legislative session that eliminated those inspections, including provisions that provide for an initial three-year inspection period for certain rental vehicles and the corresponding inspection fee. H.B. 3528 amends the Transportation Code to revise provisions relating to inspection program replacement fees imposed at the time of vehicle registration to provide for the amount of the fee for rental vehicles eligible for a three-year initial registration period. Specifically, the bill does the following: requires an applicant for initial registration of an applicable rental vehicle to pay a one-time fee of $22.25 instead of certain other prescribed amounts; establishes that an applicant who pays that fee is not required to pay the annual $7.50 fee for the next two registration years for the same vehicle; and requires the $22.25 fee to be deposited by the comptroller of public accounts after receipt as follows: o $16.25 to the Texas Mobility Fund; and o $6 to the credit of the clean air account, which is the amount of the repealed inspection fee currently designated for deposit to that account. H.B. 3528 specifies that the Texas Department of Motor Vehicles is required to designate a vehicle registration period of 24 consecutive months to begin on the first day of a calendar month and end on the last day of the 24th calendar month for a passenger car or light truck that meets the following criteria: is sold in Texas or purchased by a commercial fleet buyer for use in Texas; has not been previously registered in Texas or another state; and on the date of sale is of the current or preceding model year. H.B. 3528 amends the Health and Safety Code to make conforming changes to provisions regarding the composition of the clean air account and provisions providing for a three-year emissions inspection period for certain rental vehicles. The bill replaces the specification that the three-year emissions inspection period provisions apply if the state's air quality state implementation plan provides for such a period with the specification that those provisions apply if approved by the EPA as part of that plan. H.B. 3528 repeals the following provisions of the Transportation Code: Section 548.051(a) and (c); Section 548.052; Section 548.054; Section 548.1025; Section 548.104(d); Section 548.501(a); and Section 548.5035. EFFECTIVE DATE September 1, 2025. BILL ANALYSIS # BILL ANALYSIS H.B. 3528 By: McQueeney Transportation Committee Report (Unamended) H.B. 3528 By: McQueeney Transportation Committee Report (Unamended) BACKGROUND AND PURPOSE The 88th Texas Legislature enacted both H.B. 3297, which eliminated mandatory vehicle safety inspections for noncommercial vehicles, and S.B. 2102, which provided for initial registration and inspection periods of three years for new rental cars. The bill author has informed the committee that because H.B. 3297 did not reconcile the previously passed provisions of S.B. 2102, the provisions of S.B. 2102 relating to a three-year safety inspection period are still in statute, although they do not apply because vehicle safety inspections are no longer required. H.B. 3528 addresses this issue by repealing these unnecessary statutory provisions and reconciling corresponding statutory references. Provisions of S.B. 2102 relating to the three-year emissions inspection and registration periods for new rental cars still apply. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3528 repeals Transportation Code provisions relating to mandatory vehicle safety inspections for noncommercial vehicles that were amended or added by Acts of the 88th Legislature, Regular Session, 2023, in conflict with another Act of that legislative session that eliminated those inspections, including provisions that provide for an initial three-year inspection period for certain rental vehicles and the corresponding inspection fee. H.B. 3528 amends the Transportation Code to revise provisions relating to inspection program replacement fees imposed at the time of vehicle registration to provide for the amount of the fee for rental vehicles eligible for a three-year initial registration period. Specifically, the bill does the following: requires an applicant for initial registration of an applicable rental vehicle to pay a one-time fee of $22.25 instead of certain other prescribed amounts; establishes that an applicant who pays that fee is not required to pay the annual $7.50 fee for the next two registration years for the same vehicle; and requires the $22.25 fee to be deposited by the comptroller of public accounts after receipt as follows: o $16.25 to the Texas Mobility Fund; and o $6 to the credit of the clean air account, which is the amount of the repealed inspection fee currently designated for deposit to that account. H.B. 3528 specifies that the Texas Department of Motor Vehicles is required to designate a vehicle registration period of 24 consecutive months to begin on the first day of a calendar month and end on the last day of the 24th calendar month for a passenger car or light truck that meets the following criteria: is sold in Texas or purchased by a commercial fleet buyer for use in Texas; has not been previously registered in Texas or another state; and on the date of sale is of the current or preceding model year. H.B. 3528 amends the Health and Safety Code to make conforming changes to provisions regarding the composition of the clean air account and provisions providing for a three-year emissions inspection period for certain rental vehicles. The bill replaces the specification that the three-year emissions inspection period provisions apply if the state's air quality state implementation plan provides for such a period with the specification that those provisions apply if approved by the EPA as part of that plan. H.B. 3528 repeals the following provisions of the Transportation Code: Section 548.051(a) and (c); Section 548.052; Section 548.054; Section 548.1025; Section 548.104(d); Section 548.501(a); and Section 548.5035. EFFECTIVE DATE September 1, 2025. BACKGROUND AND PURPOSE The 88th Texas Legislature enacted both H.B. 3297, which eliminated mandatory vehicle safety inspections for noncommercial vehicles, and S.B. 2102, which provided for initial registration and inspection periods of three years for new rental cars. The bill author has informed the committee that because H.B. 3297 did not reconcile the previously passed provisions of S.B. 2102, the provisions of S.B. 2102 relating to a three-year safety inspection period are still in statute, although they do not apply because vehicle safety inspections are no longer required. H.B. 3528 addresses this issue by repealing these unnecessary statutory provisions and reconciling corresponding statutory references. Provisions of S.B. 2102 relating to the three-year emissions inspection and registration periods for new rental cars still apply. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3528 repeals Transportation Code provisions relating to mandatory vehicle safety inspections for noncommercial vehicles that were amended or added by Acts of the 88th Legislature, Regular Session, 2023, in conflict with another Act of that legislative session that eliminated those inspections, including provisions that provide for an initial three-year inspection period for certain rental vehicles and the corresponding inspection fee. H.B. 3528 amends the Transportation Code to revise provisions relating to inspection program replacement fees imposed at the time of vehicle registration to provide for the amount of the fee for rental vehicles eligible for a three-year initial registration period. Specifically, the bill does the following: requires an applicant for initial registration of an applicable rental vehicle to pay a one-time fee of $22.25 instead of certain other prescribed amounts; establishes that an applicant who pays that fee is not required to pay the annual $7.50 fee for the next two registration years for the same vehicle; and requires the $22.25 fee to be deposited by the comptroller of public accounts after receipt as follows: o $16.25 to the Texas Mobility Fund; and o $6 to the credit of the clean air account, which is the amount of the repealed inspection fee currently designated for deposit to that account. H.B. 3528 specifies that the Texas Department of Motor Vehicles is required to designate a vehicle registration period of 24 consecutive months to begin on the first day of a calendar month and end on the last day of the 24th calendar month for a passenger car or light truck that meets the following criteria: is sold in Texas or purchased by a commercial fleet buyer for use in Texas; has not been previously registered in Texas or another state; and on the date of sale is of the current or preceding model year. H.B. 3528 amends the Health and Safety Code to make conforming changes to provisions regarding the composition of the clean air account and provisions providing for a three-year emissions inspection period for certain rental vehicles. The bill replaces the specification that the three-year emissions inspection period provisions apply if the state's air quality state implementation plan provides for such a period with the specification that those provisions apply if approved by the EPA as part of that plan. H.B. 3528 repeals the following provisions of the Transportation Code: Section 548.051(a) and (c); Section 548.052; Section 548.054; Section 548.1025; Section 548.104(d); Section 548.501(a); and Section 548.5035. EFFECTIVE DATE September 1, 2025.