1-1  By:  Counts (Senate Sponsor - Cain)                   H.B. No. 2845
    1-2        (In the Senate - Received from the House May 11, 1995;
    1-3  May 12, 1995, read first time and referred to Committee on State
    1-4  Affairs; May 22, 1995, reported favorably by the following vote:
    1-5  Yeas 10, Nays 0; May 22, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the powers, functions, authority, and duties of the
    1-9  Automobile Theft Prevention Authority.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Article 4413(37), Title 70, Revised Statutes, is
   1-12  amended to read as follows:
   1-13        Art. 4413(37).  Automobile theft prevention authority
   1-14        Sec. 1.  Definitions.  In this article:
   1-15              (1)  "Authority" means the Automobile Theft Prevention
   1-16  Authority.
   1-17              (2)  "Economic automobile theft" means automobile theft
   1-18  committed for financial gain.
   1-19        Sec. 2.  Establishment of authority.  The Automobile Theft
   1-20  Prevention Authority is established in the Texas Department of
   1-21  Transportation.  The authority is not an advisory body to the Texas
   1-22  Department of Transportation.  The Texas Department of
   1-23  Transportation shall, at the direction of the authority, implement
   1-24  authority decisions <criminal justice division of the governor's
   1-25  office>.
   1-26        Sec. 3.  Appointment of authority.  (a)  The authority is
   1-27  composed of seven members.
   1-28        (b)  The governor, with the advice and consent of the senate,
   1-29  shall appoint the following six members:
   1-30              (1)  two representatives of motor vehicle insurance
   1-31  consumers;
   1-32              (2)  two representatives of insurance companies writing
   1-33  motor vehicle insurance in this state; and
   1-34              (3)  two representatives of law enforcement.
   1-35        (c)  The director of the Department of Public Safety or the
   1-36  director's designee serves ex officio as the seventh member of the
   1-37  authority.
   1-38        (d)  Appointments to the authority shall be made without
   1-39  regard to race, color, handicap, sex, religion, age, or national
   1-40  origin of the appointees.
   1-41        (e)  The six members of the authority appointed by the
   1-42  governor serve staggered six-year terms, with the terms of two
   1-43  members expiring February 1 of each odd-numbered year.  If there is
   1-44  a vacancy during a term, the governor shall appoint a replacement
   1-45  who meets the requirements of the vacant office to fill the
   1-46  unexpired term.
   1-47        (f)  It is a ground for removal from the authority if a
   1-48  member:
   1-49              (1)  does not have at the time of appointment the
   1-50  qualifications required by Subsection (b) of this section;
   1-51              (2)  does not maintain during service on the authority
   1-52  the qualifications required by Subsection (b) of this section;
   1-53              (3)  cannot discharge the member's duties for a
   1-54  substantial part of the term for which the member is appointed
   1-55  because of illness or disability; or
   1-56              (4)  is absent from more than half of the regularly
   1-57  scheduled authority meetings that the member is eligible to attend
   1-58  during a calendar year unless the absence is excused by majority
   1-59  vote of the authority.
   1-60        (g)  The validity of an action of the authority is not
   1-61  affected by the fact that it is taken when a ground for removal of
   1-62  a member of the authority exists.
   1-63        (h)  If the chairman has knowledge that a potential ground
   1-64  for removal exists, the chairman shall notify the governor of that
   1-65  fact.
   1-66        Sec. 4.  Expenses.  A member of the authority is not entitled
   1-67  to compensation but is entitled to reimbursement for expenses
   1-68  incurred in performing the member's duties at the rate provided in
    2-1  the General Appropriations Act.
    2-2        Sec. 5.  Officers; meetings.  (a)  At the first meeting of
    2-3  each calendar year, the authority shall elect a chairman from its
    2-4  members.
    2-5        (b)  The authority shall meet at the call of the chairman or
    2-6  at the call of four members.
    2-7        Sec. 6.  Powers and duties.  (a)  The authority shall adopt
    2-8  rules to implement its powers and duties.
    2-9        (b)  The authority may solicit and accept gifts and grants.
   2-10        (c)  The authority may employ and compensate staff in
   2-11  coordination with the Texas Department of Transportation, and may
   2-12  delegate authority to the staff as needed <as provided by
   2-13  legislative appropriation or may use staff provided by the
   2-14  governor's office>.
   2-15        (d)  Not later than April 1 of each year, the authority shall
   2-16  report on its activities to the lieutenant governor and the speaker
   2-17  of the house of representatives.
   2-18        (e)  The authority may contract for various services with
   2-19  other state agencies as needed to carry out its purposes, powers,
   2-20  and duties.  These services may include, but are not limited to,
   2-21  legal services, fiscal services, administrative services, and
   2-22  personnel services.  The authority may enter into contracts in its
   2-23  own name and on its own behalf.
   2-24        Sec. 6A.  POWER TO REFUND.  (a)  The authority may make
   2-25  determinations regarding the sufficiency of payments made by an
   2-26  "insurer" (as defined under Section 10 of this article) of fees
   2-27  collected pursuant to Section 10 of this article.
   2-28        (b)  Pursuant to such determination, the authority may:
   2-29              (1)  notify the comptroller that payments made by an
   2-30  insurer are sufficient;
   2-31              (2)  request the comptroller to draw warrants on the
   2-32  automobile theft prevention fund for the purpose of refunding
   2-33  monies to an insurer.
   2-34        (c)  The authority shall make the determination under
   2-35  Subsection (b) of this section as follows:
   2-36              (1)  the two members of the authority who are
   2-37  representatives of insurance companies writing motor vehicle
   2-38  insurance in this state shall recuse themselves;
   2-39              (2)  the remaining five members of the authority shall
   2-40  make the determination by a simple majority vote.
   2-41        (d)  Determinations made under this section shall be
   2-42  performed in accordance with procedures set forth in rules adopted
   2-43  by the Automobile Theft Prevention Authority.  The question of
   2-44  eligibility for a refund is not a contested case within the meaning
   2-45  of the Administrative Procedure Act (Chapter 2001, Government
   2-46  Code).
   2-47        (e)  This Section 6A applies to requests that are or have
   2-48  been submitted to the authority on or after the effective date of
   2-49  this Section 6A.
   2-50        Sec. 7.  Plan of operation.  (a)  The authority shall develop
   2-51  and implement a plan of operation.
   2-52        (b)  The plan of operation must include:
   2-53              (1)  an assessment of the scope of the problems of
   2-54  automobile theft and economic automobile theft, including
   2-55  particular areas of the state where the problems are greatest;
   2-56              (2)  an analysis of various methods of combating the
   2-57  problems of automobile theft and economic automobile theft;
   2-58              (3)  a plan for providing financial support to combat
   2-59  automobile theft and economic automobile theft; and
   2-60              (4)  an estimate of the funds required to implement the
   2-61  plan of operation.
   2-62        Sec. 8.  Automobile theft prevention fund.  (a)  The
   2-63  automobile theft prevention fund is an account in the state
   2-64  treasury.
   2-65        (b)  The treasurer shall administer the fund and may invest
   2-66  the fund in the same manner as other state funds.
   2-67        (c)  The comptroller shall deposit to the credit of the fund
   2-68  any gift or grant of money accepted by the authority and money
   2-69  collected under Sections 9 and 10 of this article.  The comptroller
   2-70  shall draw warrants on the fund at the request of the authority,
    3-1  except that a warrant may not exceed the amount in the fund.
    3-2        (d)  Interest or income on amounts deposited in the
    3-3  automobile theft prevention fund shall be credited to the fund.
    3-4        (e)  Money credited to the fund shall be used by the
    3-5  authority to pay administrative costs and to achieve the purposes
    3-6  of this article, including:
    3-7              (1)  establishing and funding the automobile
    3-8  registration program required by Section 9 of this article;
    3-9              (2)  providing financial support to law enforcement
   3-10  agencies for economic automobile theft enforcement teams;
   3-11              (3)  providing financial support to law enforcement
   3-12  agencies, local prosecutors, judicial agencies, and neighborhood,
   3-13  community, business, and nonprofit organizations for programs
   3-14  designed to reduce the incidence of economic automobile theft;
   3-15              (4)  conducting educational programs designed to inform
   3-16  automobile owners of methods of preventing automobile theft;
   3-17              (5)  providing equipment, for experimental purposes, to
   3-18  assist automobile owners in preventing automobile theft; and
   3-19              (6)  establishing a uniform program to prevent stolen
   3-20  motor vehicles from entering Mexico.
   3-21        Sec. 9.  Automobile registration program.  (a)  The authority
   3-22  shall develop a statewide automobile registration program to be
   3-23  administered by the Department of Public Safety.
   3-24        (b)  The authority shall identify a period of the day during
   3-25  which most automobiles are not used.  An owner of an automobile
   3-26  that does not usually use the automobile during that period may
   3-27  register the automobile with the Department of Public Safety in
   3-28  accordance with the program developed by the authority.
   3-29        (c)  The authority shall develop a form for registration of
   3-30  an automobile under the program.  The form shall advise the owner
   3-31  of the automobile of the provisions of Subsection (f) of this
   3-32  section.  An automobile may not be registered under the program
   3-33  unless the owner consents to the provisions of Subsection (f) of
   3-34  this section.
   3-35        (d)  The program must provide a method for an owner to
   3-36  withdraw an automobile from the program.  The program may not
   3-37  require owners of automobiles to participate in the program.
   3-38        (e)  The department shall issue to the owner of an automobile
   3-39  registered under this section a decal or other appropriate
   3-40  identifying marker to be affixed to the automobile to indicate that
   3-41  the automobile is registered with the program.
   3-42        (f)  A peace officer who observes a registered automobile
   3-43  that is being operated during the period of the day identified by
   3-44  the authority under Subsection (b) of this section may stop the
   3-45  automobile to determine whether the automobile is being operated by
   3-46  the owner or with the owner's permission.
   3-47        (g)  The Department of Public Safety shall adopt rules to
   3-48  administer the program and shall adopt fees in an amount sufficient
   3-49  to recover the cost of administering the program.  Money collected
   3-50  by the department under this subsection shall be deposited to the
   3-51  credit of the automobile theft prevention fund.
   3-52        Sec. 10.  Fee.  (a)  In this section:
   3-53              (1)  "Insurer" means any insurance company writing any
   3-54  form of motor vehicle insurance in this state, including an
   3-55  interinsurance or reciprocal exchange, mutual company, mutual
   3-56  association, or Lloyd's plan.
   3-57              (2)  "Motor vehicle years of insurance" means the total
   3-58  number of years or portions of years during which a motor vehicle
   3-59  is covered by insurance.
   3-60        (b)  Not later than March <February> 1 of each year, each
   3-61  insurer shall pay to the authority a fee equal to $1 multiplied by
   3-62  the total number of motor vehicle years of insurance for insurance
   3-63  policies delivered, issued for delivery, or renewed by the insurer
   3-64  during the preceding calendar year.
   3-65        (c)  The fee imposed by this section is in addition to any
   3-66  other fee or tax imposed by law on an insurer.
   3-67        (d)  The authority shall notify the State Board of Insurance
   3-68  of any insurer that fails to pay the fee required by this section,
   3-69  and the board may for that reason revoke the insurer's certificate
   3-70  of authority.
    4-1        (e)  If the authority is abolished under Section 12 of this
    4-2  article or otherwise, the comptroller shall deposit to the general
    4-3  revenue fund any money that is in the automobile theft prevention
    4-4  fund on the date that the authority is abolished.
    4-5        Sec. 11.  Performance review.  (a)  In this section,
    4-6  "automobile theft rate" means the ratio of automobile thefts in
    4-7  this state to the number of automobiles in this state.  The ratio
    4-8  shall be based on statistical information provided by the
    4-9  Department of Public Safety's uniform crime reporting division.
   4-10        (b)  The authority shall determine the automobile theft rate
   4-11  as of the date a majority of the members of the authority are
   4-12  appointed and have qualified for office and shall report the rate
   4-13  to the lieutenant governor and the speaker of the house of
   4-14  representatives.  The report required by this subsection shall be
   4-15  made not later than 30 days after the date on which a majority of
   4-16  the initial members of the authority are appointed and have
   4-17  qualified for office.
   4-18        <(c)  Not later than August 1, 1997, the authority shall
   4-19  determine the automobile theft rate as of July 1, 1997, and shall
   4-20  report the rate to the lieutenant governor and the speaker of the
   4-21  house of representatives.  If the rate is larger than the rate
   4-22  established by the authority under Subsection (b) of this section,
   4-23  the authority is abolished and contracts entered into by the
   4-24  authority terminate effective August 31, 1997.>
   4-25        <(d)  If the authority is abolished under Subsection (c) of
   4-26  this section, the comptroller shall deposit to the general revenue
   4-27  fund any money that is in the automobile theft prevention fund on
   4-28  the date that the authority is abolished.>
   4-29        Sec. 12.  SUNSET PROVISION.  The Automobile Theft Prevention
   4-30  Authority is subject to Chapter 325, Government Code (Texas Sunset
   4-31  Act).  Unless continued in existence as provided by that chapter,
   4-32  the authority is abolished and this article expires September 1,
   4-33  1997.
   4-34        SECTION 2.  The importance of this legislation and the
   4-35  crowded condition of the calendars in both houses create an
   4-36  emergency and an imperative public necessity that the
   4-37  constitutional rule requiring bills to be read on three several
   4-38  days in each house be suspended, and this rule is hereby suspended,
   4-39  and that this Act take effect and be in force from and after its
   4-40  passage, and it is so enacted.
   4-41                               * * * * *