By Chisum, Gray                                       H.B. No. 3036
       74R7784 MI-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the vehicle emissions inspection and maintenance
    1-3  program.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Sections 382.037(d) and (h), Health and Safety
    1-6  Code, are amended to read as follows:
    1-7        (d)  On adoption of a resolution by the commission <board>
    1-8  and after proper notice, the Texas Department of Transportation
    1-9  shall implement a system that requires, as a condition of
   1-10  registering a motor vehicle under Section 2, Chapter 88, General
   1-11  Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
   1-12  (Article 6675a-2, Vernon's Texas Civil Statutes), in a county that
   1-13  is included in a vehicle emissions inspection and maintenance
   1-14  program under Section 142, Uniform Act Regulating Traffic on
   1-15  Highways (Article 6701d, Vernon's Texas Civil Statutes), that the
   1-16  vehicle, unless the vehicle is not covered by the system or is
   1-17  being registered in conjunction with the vehicle's first sale as
   1-18  that term is defined by Section 7, Certificate of Title Act
   1-19  (Article 6687-1, Vernon's Texas Civil Statutes), be <annually or
   1-20  biennially> inspected annually, biennially, or at some other
   1-21  appropriate interval under the vehicle emissions inspection and
   1-22  maintenance program as required by the Texas air quality state
   1-23  implementation plan.   The Texas Department of Transportation shall
   1-24  implement such a system when it is required by any provision of
    2-1  federal or state law, including any provision of the Texas air
    2-2  quality state implementation plan.  The commission <board> may
    2-3  require or accept verification of compliance other than a vehicle
    2-4  inspection certificate.  The commission shall accept, instead of a
    2-5  vehicle inspection certificate or an alternative verification of
    2-6  compliance, a repair waiver or proof of payment of a mitigation fee
    2-7  as provided by Section 382.0371.  The alternative verification of
    2-8  compliance, repair waiver, or proof of payment of a mitigation fee
    2-9  shall be in a form determined through joint rule making by the
   2-10  commission <board> and the Texas Department of Transportation.
   2-11        (h)  If the Texas Department of Transportation adopts a
   2-12  system under Subsection (d), the department by rule shall<:>
   2-13              <(1)>  require, for a vehicle that is to be registered
   2-14  in a county covered by a biennial emissions testing program, that
   2-15  in an even-numbered year the owner of a vehicle of an even-numbered
   2-16  model year, and in an odd-numbered year the owner of a vehicle of
   2-17  an odd-numbered model year, submit to the department a valid
   2-18  vehicle emissions inspection certificate, other verification of
   2-19  compliance, repair waiver, or proof of payment of a mitigation fee
   2-20  issued for that vehicle within 90 days preceding the date on which
   2-21  the person applies for the registration<; and>
   2-22              <(2)  require the owner of a vehicle that is to be
   2-23  registered in an area covered by an annual emissions testing
   2-24  program to submit to the department a valid emissions inspection
   2-25  certificate issued for that vehicle within 90 days preceding the
   2-26  date on which the person applies for the registration>.
   2-27        SECTION 2.  Subchapter B, Chapter 382, Health and Safety
    3-1  Code, is amended by adding Sections 382.0371-382.0373 to read as
    3-2  follows:
    3-3        Sec. 382.0371.  HYBRID VEHICLE EMISSIONS INSPECTION AND
    3-4  MAINTENANCE PROGRAM.  (a)  For purposes of obtaining a vehicle
    3-5  emissions inspection certificate required as a condition of
    3-6  registration in an affected county, a vehicle that is less than
    3-7  four years old may be inspected at a decentralized test-and-repair
    3-8  facility that is authorized and licensed by the commission to
    3-9  conduct vehicle emissions inspections and that uses ASM technology
   3-10  or an equivalent or improved technology approved by the commission.
   3-11        (b)  For purposes of obtaining a vehicle emissions inspection
   3-12  certificate required as a condition of registration in an affected
   3-13  county, a vehicle that is four years old or older must be initially
   3-14  inspected at a centralized IM240 inspection facility that is
   3-15  authorized and licensed by the commission to conduct vehicle
   3-16  emissions inspections.  If repair is necessary before a vehicle can
   3-17  qualify for a vehicle emissions inspection certificate, the
   3-18  subsequent reinspection may be conducted at a decentralized
   3-19  test-and-repair facility that is authorized and licensed by the
   3-20  commission to conduct vehicle emissions inspections and that uses
   3-21  ASM technology or an equivalent or improved technology approved by
   3-22  the commission.
   3-23        (c)  A person may obtain an exemption from vehicle emissions
   3-24  inspection requirements for a vehicle less than four years old by
   3-25  submitting a $10 mitigation fee to the county tax
   3-26  assessor-collector with the application for registration of the
   3-27  vehicle each year of the biennial inspection cycle preceding the
    4-1  inspection cycle for which the exemption is sought.  The county tax
    4-2  assessor-collector shall issue to a person paying the mitigation
    4-3  fee proof of payment in a form prescribed by the commission.  The
    4-4  county tax assessor-collector shall keep a separate record of, and
    4-5  shall deposit in a separate account in the county treasury the
    4-6  mitigation fees collected under this section and each calendar
    4-7  quarter shall remit to the comptroller mitigation fees collected
    4-8  for the preceding quarter.  The comptroller shall deposit the
    4-9  mitigation fees to the credit of the clean air fund.  The fees may
   4-10  be used only for the purposes of the vehicle removal program
   4-11  established under Section 382.0373.
   4-12        (d)  A person may obtain a repair waiver for a vehicle if the
   4-13  vehicle fails the initial inspection at an authorized facility, the
   4-14  person spends at least $150 on repairing the vehicle to bring it
   4-15  into compliance, and the repaired vehicle fails reinspection at an
   4-16  authorized facility.  The facility that repaired and reinspected
   4-17  the vehicle shall issue the person a repair waiver on a form and in
   4-18  the manner provided by the commission.  A county tax
   4-19  assessor-collector shall accept a repair waiver as alternative
   4-20  verification of compliance for purposes of registering the vehicle.
   4-21  On or after January 1, 1998, a person must have spent at least $550
   4-22  on repairs to qualify for a repair waiver.
   4-23        (e)  The commission by rule may include local governments in
   4-24  the administration of any aspect of the vehicle emissions
   4-25  inspection program if the commission considers participation by
   4-26  local governments necessary or desirable.
   4-27        (f)  The commission and the Texas Department of
    5-1  Transportation by joint rule shall require vehicle emissions
    5-2  inspection and certification as a condition of registering a
    5-3  vehicle if:
    5-4              (1)  the vehicle:
    5-5                    (A)  is to be registered outside an affected
    5-6  county; and
    5-7                    (B)  will be driven inside the affected county
    5-8  more than three times each week; or
    5-9              (2)  the vehicle:
   5-10                    (A)  is a used vehicle;
   5-11                    (B)  is to be registered in an affected county;
   5-12  and
   5-13                    (C)  was registered outside or was held
   5-14  unregistered outside the affected county during the previous
   5-15  registration year.
   5-16        (g)  The commission by rule may provide for the inspection
   5-17  and repair of vehicles under the vehicle emissions inspection and
   5-18  maintenance program by certified repair technicians at certified
   5-19  testing or test-and-repair facilities.
   5-20        (h)  The commission may use remote sensing in an affected
   5-21  county to identify gross emitting vehicles in locations where those
   5-22  vehicles are likely to travel.
   5-23        (i)  The commission by rule shall set a uniform fee for
   5-24  initial vehicle emissions inspection and maintenance testing in all
   5-25  nonattainment areas.  A centralized inspection facility or a
   5-26  decentralized test-and-repair facility that reinspects a vehicle
   5-27  after the vehicle has failed the initial inspection and has been
    6-1  repaired to bring the vehicle into compliance may not charge a fee
    6-2  to reinspect the vehicle.
    6-3        (j)  The commission, the Texas Department of Transportation,
    6-4  and the Public Safety Commission by joint rule may develop a
    6-5  program to allow a centralized inspection facility to renew vehicle
    6-6  registrations and to perform safety inspections.
    6-7        (k)  The commission in implementing the vehicle emissions
    6-8  inspection and maintenance program may not impose requirements more
    6-9  stringent than federal requirements.  The commission by rule may:
   6-10              (1)  remove a county from the program if the action is
   6-11  not prohibited by federal law or regulation; or
   6-12              (2)  adopt additional requirements necessary to comply
   6-13  with federal law.
   6-14        (l)  In this section:
   6-15              (1)  "Affected county" means a county that is included
   6-16  in a vehicle emissions inspection and maintenance program under
   6-17  Section 142, Uniform Act Regulating Traffic on Highways (Article
   6-18  6701d, Vernon's Texas Civil Statutes).
   6-19              (2)  "Fleet vehicle" means a motor vehicle operated as
   6-20  one of a group that consists of more than 10 motor vehicles and
   6-21  that is owned and operated by a public or commercial entity or by a
   6-22  private entity other than a single household.
   6-23              (3)  "Vehicle" includes a fleet vehicle.
   6-24        Sec. 382.0372.  HYBRID PROGRAM:  TRANSITION PERIOD.  (a)
   6-25  From the effective date of this section until January 1, 1998, the
   6-26  vehicle emissions inspection program established under Section
   6-27  382.037 and modified by Section 382.0371 applies and may be
    7-1  operated and implemented only as provided by this section.
    7-2        (b)  Beginning May 2, 1995, and except as provided by
    7-3  Subsection (d), the program applies to all fleet vehicles in
    7-4  Tarrant, Dallas, Harris, Galveston, Brazoria, Fort Bend,
    7-5  Montgomery, and El Paso counties.
    7-6        (c)  Beginning June 1, 1995, and except as provided by
    7-7  Subsection (d), the program applies to all vehicles in Tarrant,
    7-8  Dallas, Harris, Galveston, Brazoria, Fort Bend, Montgomery, and El
    7-9  Paso counties.
   7-10        (d)  Until January 1, 1996, a decentralized test-and-repair
   7-11  facility in Tarrant or Dallas county may perform vehicle emissions
   7-12  inspections using BAR90 technology instead of ASM technology.
   7-13        (e)  Beginning January 1, 1996, the program applies in
   7-14  Jefferson and Orange counties.  On or after that date, the
   7-15  commission may extend the program to Collin and Denton counties.
   7-16        Sec. 382.0373.  VEHICLE REMOVAL PROGRAM.  (a)  The commission
   7-17  shall develop a program for the purchase and disposal of gross
   7-18  polluting vehicles.  The program must include eligibility standards
   7-19  for repurchase and a disposal plan that permanently removes the
   7-20  purchased vehicles from use.
   7-21        (b)  Payment for a vehicle purchased under a program
   7-22  developed under this section may not exceed the actual cash value
   7-23  of the vehicle.  If the actual cash value of a vehicle exceeds
   7-24  $1,000, payment for that vehicle may not exceed $1,000.
   7-25        SECTION 3.  Sections 2(i) and (j), Chapter 88, General Laws,
   7-26  Acts of the 41st Legislature, 2nd Called Session, 1929 (Article
   7-27  6675a-2, Vernon's Texas Civil Statutes), are amended to read as
    8-1  follows:
    8-2        (i)  In implementing each system that requires a valid
    8-3  vehicle emissions inspection certificate as a condition of
    8-4  registering a vehicle in a county that is included in a vehicle
    8-5  emissions inspection and maintenance program under Section 142,
    8-6  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
    8-7  Texas Civil Statutes), the Texas Department of Transportation
    8-8  through the county tax collector in the county may not issue a
    8-9  registration for a vehicle unless the vehicle emissions inspection
   8-10  certificate for that vehicle issued by an inspection station
   8-11  located in a county that is included in the vehicle emissions
   8-12  inspection and maintenance program within the applicable period
   8-13  required by Section 382.037(h), Health and Safety Code, <or> other
   8-14  verification of compliance, as provided by Section 382.037, Health
   8-15  and Safety Code, or repair waiver or payment or proof of payment of
   8-16  a mitigation fee as provided by Section 382.0371, Health and Safety
   8-17  Code, is submitted with the application for registration or renewal
   8-18  of registration.  The county tax collector, a deputy county tax
   8-19  collector, or a person acting on behalf of the county tax collector
   8-20  is not liable to any person for refusing to register a motor
   8-21  vehicle because of the person's failure to submit the vehicle
   8-22  emissions inspection certificate, waiver, <or> other verification
   8-23  of compliance or payment or proof of payment of a mitigation fee or
   8-24  for registering a motor vehicle under this section.
   8-25        (j)(1)  A county tax collector covered by Subsection (i) of
   8-26  this section shall collect the original emissions inspection
   8-27  certificates, waivers, and other verifications of compliance and on
    9-1  request of the Texas Natural Resource Conservation Commission shall
    9-2  submit the certificates, waivers, and the other verifications to
    9-3  the commission.  The county tax collector also shall collect the
    9-4  mitigation fees and handle the fees as prescribed by Section
    9-5  382.0371(c), Health and Safety Code.
    9-6              (2)  Each county tax collector shall submit an annual
    9-7  report to the Texas Natural Resource Conservation Commission and
    9-8  the Texas Department of Transportation that shows:
    9-9                    (A)  the number of registrations denied because
   9-10  of the applicant's failure to provide proof of residency in the
   9-11  county;
   9-12                    (B)  the number of registrations denied because
   9-13  of the applicant's failure to provide an original emissions
   9-14  inspection certificate, other verification of compliance, <or> a
   9-15  valid waiver or payment or proof of payment of a mitigation fee;
   9-16  and
   9-17                    (C)  an itemized accounting of the costs to the
   9-18  county of administering this subsection and Subsections (a) and (i)
   9-19  of this section.
   9-20        SECTION 4.  Section 3(j), Chapter 88, General Laws, Acts of
   9-21  the 41st Legislature, 2nd Called Session, 1929 (Article 6675a-3,
   9-22  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-23        (j)  In implementing each system that requires a valid
   9-24  vehicle emissions inspection certificate as a condition of
   9-25  registering a vehicle in a county that is included in a vehicle
   9-26  emissions inspection and maintenance program under Section 142,
   9-27  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
   10-1  Texas Civil Statutes), the State Department of Highways and Public
   10-2  Transportation shall require that the vehicle emissions inspection
   10-3  certificate for that vehicle, <or> other verification of
   10-4  compliance, as provided by Section 382.037(e), Health and Safety
   10-5  Code, or repair waiver or payment or proof of payment of a
   10-6  mitigation fee as provided by Section 382.0371, Health and Safety
   10-7  Code, be submitted with an application for registration or renewal
   10-8  of registration.
   10-9        SECTION 5.  Section 141(a-1), Uniform Act Regulating Traffic
  10-10  on Highways (Article 6701d, Vernon's Texas Civil Statutes), is
  10-11  amended to read as follows:
  10-12        (a-1)  The Texas Natural Resource Conservation Commission may
  10-13  authorize and license inspection stations as necessary to conduct
  10-14  the emissions-related reinspection requirements of the vehicle
  10-15  emissions inspection and maintenance program under Sections 142(d)
  10-16  and (d-1) of this Act.  At the request of the Texas Natural
  10-17  Resource Conservation Commission, the Department shall provide
  10-18  inspection certificates for distribution and issuance at
  10-19  centralized or decentralized reinspection stations licensed by the
  10-20  Texas Natural Resource Conservation Commission.  The Texas Natural
  10-21  Resource Conservation Commission shall pay to the Department an
  10-22  amount equal to the cost of producing the certificates.  The Texas
  10-23  Natural Resource Conservation Commission shall establish a
  10-24  reinspection fee and shall implement procedures governing tracking
  10-25  of certificates and refunding the cost of unused certificates
  10-26  issued to reinspection facilities.
  10-27        SECTION 6.  Section 4.202(a-1), County Road and Bridge Act
   11-1  (Article 6702-1, Vernon's Texas Civil Statutes), is amended to read
   11-2  as follows:
   11-3        (a-1)  A county tax assessor-collector who is required by
   11-4  Section 2(j), Chapter 88, General Laws, Acts of the 41st
   11-5  Legislature, 2nd Called Session, 1929 (Article 6675a-2, Vernon's
   11-6  Texas Civil Statutes), to collect a vehicle emissions inspection
   11-7  certificate, other verification of compliance, <or> a valid waiver,
   11-8  or a mitigation fee from an applicant for registration of a vehicle
   11-9  shall collect and retain for the county a fee of 50 cents for each
  11-10  emissions inspection certificate, waiver, <or> other verification,
  11-11  or mitigation fee collected.  The county tax assessor-collector may
  11-12  not collect an additional fee for the administrative costs of
  11-13  collecting and handling the mitigation fee.
  11-14        SECTION 7.  Effective May 2, 1995, the following are
  11-15  repealed:
  11-16              (1)  Sections 382.037(o) and (p), Health and Safety
  11-17  Code, as added by Senate Bill No. 19, Acts of the 74th Legislature,
  11-18  Regular Session, 1995; and
  11-19              (2)  Section 2, Senate Bill No. 19, Acts of the 74th
  11-20  Legislature, Regular Session, 1995.
  11-21        SECTION 8.  (a)  On May 2, 1995, the Texas Natural Resource
  11-22  Conservation Commission, the Texas Department of Transportation,
  11-23  and the Public Safety Commission may resume operation and
  11-24  implementation of the vehicle emissions inspection and maintenance
  11-25  program authorized under Section 382.037, Health and Safety Code,
  11-26  but only as modified by Sections 382.0371 through 382.0373, Health
  11-27  and Safety Code, as added by this Act.
   12-1        (b)  Immediately after the effective date of this Act, the
   12-2  Texas Natural Resource Conservation Commission shall adopt
   12-3  emergency rules to implement the vehicle emissions inspection and
   12-4  maintenance program as modified by this Act.  The commission shall
   12-5  adopt final rules as soon as practicable after the adoption of
   12-6  emergency rules.
   12-7        SECTION 9.  The importance of this legislation and the
   12-8  crowded condition of the calendars in both houses create an
   12-9  emergency and an imperative public necessity that the
  12-10  constitutional rule requiring bills to be read on three several
  12-11  days in each house be suspended, and this rule is hereby suspended,
  12-12  and that this Act take effect and be in force from and after its
  12-13  passage, and it is so enacted.