TWT C.S.H.B. 1387 75(R)BILL ANALYSIS TRANSPORTATION C.S.H.B. 1387 By: Gray 3-19-97 Committee Report (Substituted) BACKGROUND The Automobile Theft Prevention Authority (ATPA) was created in 1991 by the 72nd Legislature. ATPA is responsible for establishing a statewide effort to reduce vehicle theft and the resulting economic loss, which the authority has primarily done by providing financial support to local law enforcement agencies for automobile theft enforcement teams. ATPA has three primary duties: public education, grant administration, and grant review and monitoring. To carry out these duties and award grants, ATPA had a budget of $17.5 million and seven employees for fiscal year 1996. The $17.5 million includes unexpended balances from previous years. ATPA is subject to the Sunset act and will be abolished September 1, 1997 unless continued by the Legislature. As a result of its review, the Sunset Advisory Commission recommended continuation and several statutory modifications that are contained in this legislation. PURPOSE The purpose of this bill is to continue ATPA within the Texas Department of Transportation (TxDOT), remove the agency from separate Sunset review, and make other statutory modifications. The modifications proposed by this bill: -clarify the relationship between ATPA and TxDOT by removing ATPA's authority to employ and compensate staff and by specifying that ATPA may use only TxDOT staff and that ATPA be provided services only by or through TxDOT; -set a cap of eight percent on ATPA's administrative expenditures; -require automobile insurers to pay the ATPA assessment twice a year rather than once a year; -require that ATPA contract with the attorney general at an agreed cost for the use and enhancement of existing computer equipment to investigate, apprehend, and prosecute automobile thieves; -specifies that a request by an insurance company for a refund of ATPA assessments is valid regardless of the date the assessment was paid or the request was made; and -provide for other changes. 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. However, under the general rulemaking authority already granted to ATPA and the Transportation Commission, rules may be developed to implement some new provisions found in this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1, Article 4413(37), Revised Statutes, by adding Subdivisions (3) and (4). (3) Specifies that "Department" means the Texas Department of Transportation. (4) Specifies that "Director" means the executive director of the Texas Department of Transportation. SECTION 2. Amends Section 2, Article 4413(37), Revised Statutes, by deleting language which requires the TXDOT to implement ATPA decisions. SECTION 3. Amends Section 3, Article 4413(37), Revised Statutes, by amending Subsections (d), (f), and (h), and by adding Subsections (i), (j), (k), and (l). (d) Updates standard language developed by the Sunset Commission. Deletes the word "handicap" and replaces it with "disability." (f) and (h) Updates standard language developed by the Sunset Commission that defines the grounds for removing a member of the authority. Requires notification of the authority's presiding officer, the Governor and the Attorney General if knowledge that a potential ground for removal exists. (i) Adds standard language developed by the Sunset Commission. Prohibits appointment as a motor vehicle insurance consumer member of the authority if the person or the person's spouse is registered, certified, or licensed by a law enforcement or motor vehicle insurance regulatory agency. Also prohibits appointment if the person or the person's spouse is the owner, part-owner, or employee of a business that receives funds from the authority or is an officer, employee, or paid consultant of a Texas trade association. (j) and (k) Adds standard language developed by the Sunset Commission. Prohibits registered lobbyists from serving as a member of the authority or from being employed as the authority's general counsel. Also defines Texas trade association. (l) Adds standard language developed by the Sunset Commission. Requires the director of TxDOT or a designee to inform ATPA members of the qualifications for office and each person's responsibilities under the law. SECTION 4. Amends Section 5, Article 4413(37), Revised Statutes, by amending Subsections (a) and adding Subsections (c) and (d). (a) Adds standard language developed by the Sunset Commission. Requires the Governor to designate the presiding officer of the authority. (c) and (d) Adds standard language developed by the Sunset Commission. Requires the authority members to complete training before assuming their duties and being confirmed by the Senate. SECTION 5. Amends Section 6, Article 4413(37), Revised Statutes, by amending Subsections (c) and (e) and adding Subsections (f), (g), (h), and (i). (c) and (e) Provides that the ATPA may contract only with TxDOT for staff and only with or through TxDOT for services, as needed to carry out its purposes. Deletes language that allowed the authority to employ and compensate staff in coordination with TxDOT. Deletes language that allowed the ATPA to contract with any other state agency for services. Allows ATPA to enter into contracts in its own name only with recipients of grants. (f) Specifies that TxDOT shall provide personnel and services to the authority as agreed in a contract under (c) and (e). (g) Adds standard language developed by the Sunset Commission. Requires the authority to clearly separate its policymaking responsibilities from the management responsibilities of TxDOT. (h) Adds standard language developed by the Sunset Commission. Requires the authority give the public reasonable opportunity to appear before it regarding issues under its jurisdiction. (i) Adds standard language developed by the Sunset Commission. Requires the authority to prepare an annual financial report that meets the reporting requirements in the General Appropriations Act. SECTION 6. Amends Section 6A(b), Article 4413(37), Revised Statutes, as follows. Makes technical change. Deletes a reference to the ATPA fund that no longer exists as a result of funds consolidation legislation last session. SECTION 7. Amends Section 7, Article 4413(37), Revised Statutes, by adding Subsection (c). Requires ATPA to contract with the attorney general at an agreed cost for the use and enhancement of existing nueral computer equipment to investigate, apprehend, and prosecute automobile thieves. SECTION 8. Amends Section 8, Article 4413(37), Revised Statutes, by amending Subsections (a), (b), and (c) and by deleting Subsections (d) and (e). (a) Specifies that money appropriated for ATPA purposes shall be used by the authority to pay the department for contracted administrative costs, as well as to achieve the purposes of the article. Also makes technical change by deleting references to the Automobile Theft Prevention Authority fund that no longer exists as a result of funds consolidation last session. (b) Prohibits ATPA from spending more than eight percent of its total expenditures in any fiscal year on administrative expenses, including salaries, travel and marketing expenses. (c) Specifies that the cost of personnel and services provided to ATPA by TXDOT and the attorney general may only be paid from appropriations made specifically for ATPA purposes. Also specifies that appropriations made for ATPA purposes may not be used for any other purpose. SECTION 9. Amends Section 9(g), Article 4413(37), Revised Statutes as follows: Makes technical change. Deletes a reference to the ATPA fund that no longer exists as a result of funds consolidation legislation last session. SECTION 10. Amends Section 10(b), Article 4413(37), Revised Statutes, as follows. Effective August 1, 1998, requires insurers to pay the ATPA fee twice a year, every March 1 for policies issued, delivered, or renewed from July 1 through December 31 of the previous calendar year and every August 1 for policies issued, delivered, or renewed from January 1 through June 30 of that year. SECTION 11. Repeals Sections 6A(e), 10(e) and 12, Article 4413(37), Revised Statutes. Section 6A(e). Deletes this subsection that limited ATPA refunds of assessments paid by insurers to requests submitted to the authority on or after September 1, 1995. Section 10(e). Technical change. Deletes a reference and instruction regarding the ATPA fund that no longer exists as a result of funds consolidation legislation last session. Section 12. Deletes language that requires ATPA to be reviewed by the Sunset Advisory Commission. SECTION 12. Specifies that a request for a refund of ATPA assessments is valid regardless of the date the request or payment was made. SECTION 13. Specifies that the changes to the board member qualifications apply only to board members appointed on or after September 1, 1997. Specifies that the changes to board member qualifications do not prevent a person who serves on the board before September 1, 1997 from being reappointed if that person meets the qualifications effective on that date. SECTION 14. Effective date -- September 1, 1997. SECTION 15. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute incorporates the following major changes from the original bill: 1.Deletes existing statutory language that requires the Texas Department of Transportation (TxDOT) to implement Automobile Theft Prevention Authority (ATPA) decisions. 2.Provides that ATPA may use only staff of TxDOT as in the original bill, but deletes the provision that required ATPA and TxDOT to contract regarding the provision of staff. In addition, specifies that ATPA be provided services only by or through TxDOT as in the original bill, but deletes the provision that required ATPA to contract with TxDOT for those services. Also specifies that ATPA could continue to receive services through the attorney general's office without going through TxDOT. 3.Specifies that ATPA may still enter into contracts in its own name with grant recipients. 4.Requires ATPA to contract with the attorney general at an agreed cost for the use and enhancement of existing neural computer equipment to investigate, apprehend, and prosecute automobile thieves. 5.Specifies that ATPA will collect assessments for the entire 1997 calendar year on March 1, 1998, and that the new collection dates-August 1 and March 1-will become effective on August 1, 1998. 6.Specifies that a request by an insurance company for a refund of ATPA assessments is valid regardless of the date the assessment was paid or the request was made.