By: Ellis S.B. No. 1146 73R3842 JJT-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation and operation of a loan program to assist 1-3 certain low income persons to comply with a vehicle emissions and 1-4 maintenance program established in an air quality nonattainment 1-5 area. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Chapter 382, Health and Safety Code, is amended 1-8 by adding Subchapter G to read as follows: 1-9 SUBCHAPTER G. LOAN PROGRAM FOR VEHICLE EMISSIONS MAINTENANCE 1-10 Sec. 382.161. EMISSIONS MAINTENANCE LOAN PROGRAM. (a) The 1-11 board shall, through the development and administration of a 1-12 program, provide loans at no interest to assist an eligible person 1-13 to repair the person's motor vehicle in order to comply with 1-14 vehicle emissions inspection and maintenance requirements in an air 1-15 quality nonattainment area under the federal Clean Air Act (42 1-16 U.S.C. 7401 et seq.) and its subsequent amendments. 1-17 (b) The board may grant to an eligible person a loan in an 1-18 amount not to exceed the lesser of the cost of repairs to the 1-19 person's motor vehicle necessary for the vehicle to pass a vehicle 1-20 emissions inspection or the inspection and maintenance program 1-21 waiver amount for the vehicle provided by or in accordance with 1-22 regulations of the United States Environmental Protection Agency. 1-23 (c) The board may conduct the loan program in each air 1-24 quality nonattainment area in the state when test-only vehicle 2-1 emission inspection facilities established by the board begin to 2-2 operate in the area. 2-3 Sec. 382.162. ELIGIBILITY. A person is eligible for a loan 2-4 under this subchapter if the person resides in an air quality 2-5 nonattainment area in which the board has established the loan 2-6 program, owns a vehicle that has failed a vehicle emissions 2-7 inspection at a test-only vehicle emission inspection facility, and 2-8 is, or is a dependent of, a person who: 2-9 (1) has a family income below the poverty level 2-10 according to the federal Office of Management and Budget poverty 2-11 index; 2-12 (2) receives financial assistance under Chapter 31, 2-13 Human Resources Code; or 2-14 (3) receives food stamp assistance. 2-15 Sec. 382.163. APPLICATION AND APPROVAL FOR LOAN. (a) An 2-16 applicant for a loan under this subchapter must submit the 2-17 application in accordance with rules of the board and must include 2-18 with the application: 2-19 (1) proof of eligibility; 2-20 (2) vehicle title information; and 2-21 (3) the application processing fee. 2-22 (b) The board by rule shall require each test-only vehicle 2-23 emission inspection facility to post a notice of the loan program's 2-24 existence and eligibility requirements and to provide a person who 2-25 might be eligible, on the person's request, with a loan application 2-26 form provided by the board. 2-27 (c) A loan may be approved for an eligible applicant. The 3-1 board by rule shall adopt standards for disapproval of an 3-2 application because of a person's unreliable payment history. 3-3 Sec. 382.164. APPROVAL OF AND PAYMENT FOR REPAIR. (a) For 3-4 any person for whom the board has approved a loan application, an 3-5 emission repair technician certified by the board shall conduct an 3-6 estimate for the cost of repairing a vehicle as necessary to comply 3-7 with the inspection and maintenance program provided by or in 3-8 accordance with regulations of the United States Environmental 3-9 Protection Agency. 3-10 (b) The repair technician shall transmit the repair estimate 3-11 and identifying information about the approved loan applicant to a 3-12 test-only referee for review and approval. 3-13 (c) The board shall pay the repair technician's invoice for 3-14 repairs made to a vehicle owned by an approved applicant that are 3-15 approved by the test-only referee. The board's payment may not 3-16 exceed the lesser of the: 3-17 (1) cost of the approved repairs; 3-18 (2) the amount that remains due for approved repairs 3-19 if the owner has made a partial payment for the repairs; or 3-20 (3) the amount of the waiver limit for the vehicle 3-21 under the inspection and maintenance program provided by or in 3-22 accordance with regulations of the United States Environmental 3-23 Protection Agency. 3-24 Sec. 382.165. LOAN REPAYMENT, DEFAULT, AND COLLECTION. (a) 3-25 The board shall issue to the person who owns the repaired vehicle a 3-26 loan repayment coupon book with invoices for the payment of four 3-27 monthly loan installments that total the amount paid by the board 4-1 under Section 382.164(c). 4-2 (b) The board may permit the person not more than two 4-3 one-month extensions on the period for repayment of the loan. 4-4 (c) The board may refer a defaulted loan account to the 4-5 attorney general for collection. On the request of the board, the 4-6 attorney general may file a civil suit to recover the amount of the 4-7 default or contract with a private collection agency to recover the 4-8 default at a reasonable commission. 4-9 Sec. 382.166. FEES AND FUNDING. (a) A special revolving 4-10 fund is established outside the state treasury to be known as the 4-11 vehicle emissions maintenance assistance fund. The fund may be 4-12 used only to provide loans under and to administer this subchapter. 4-13 (b) The fund consists of: 4-14 (1) vehicle emissions inspection surcharges collected 4-15 under Subsection (d); 4-16 (2) application processing fees collected under this 4-17 subchapter; and 4-18 (3) depository interest and investment income earned 4-19 on money in the fund. 4-20 (c) The state treasurer is the custodian of the fund. The 4-21 comptroller shall issue a warrant for the fund supported only by a 4-22 voucher signed by the executive director of the board. 4-23 (d) The board shall set a surcharge on the fee for a vehicle 4-24 emissions inspection by a test-only vehicle emission inspection 4-25 facility in an amount that is reasonable and necessary to cover the 4-26 cost of administering the program. The test-only vehicle emission 4-27 inspection facility shall maintain a separate accounting for the 5-1 surcharges collected under this subsection and shall submit the 5-2 surcharge amounts to the board in accordance with board rules. 5-3 The board shall deposit the surcharge amounts to the credit of the 5-4 fund. 5-5 (e) The board shall set an application processing fee in an 5-6 amount not to exceed $25. 5-7 SECTION 2. This Act does not affect the transfer of the 5-8 rights, powers, duties, responsibilities, and functions of the 5-9 Texas Air Control Board to the Texas Natural Resource Conservation 5-10 Commission as provided by Sections 1.086 and 1.087, Chapter 3, Acts 5-11 of the 72nd Legislature, 1st Called Session, 1991. 5-12 SECTION 3. The importance of this legislation and the 5-13 crowded condition of the calendars in both houses create an 5-14 emergency and an imperative public necessity that the 5-15 constitutional rule requiring bills to be read on three several 5-16 days in each house be suspended, and this rule is hereby suspended, 5-17 and that this Act take effect and be in force from and after its 5-18 passage, and it is so enacted.