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.