1-1                                   AN ACT

 1-2     relating to the continuation and functions of the Automobile Theft

 1-3     Prevention Authority.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 1, Article 4413(37), Revised Statutes, is

 1-6     amended by adding Subdivisions (3) and (4) to read as follows:

 1-7                 (3)  "Department" means the Texas Department of

 1-8     Transportation.

 1-9                 (4)  "Director" means the executive director of the

1-10     Texas Department of Transportation.

1-11           SECTION 2.  Section 2, Article 4413(37), Revised Statutes, is

1-12     amended to read as follows:

1-13           Sec. 2.  ESTABLISHMENT OF AUTHORITY.  The Automobile Theft

1-14     Prevention Authority is established in the Texas Department of

1-15     Transportation.  The authority is not an advisory body to the Texas

1-16     Department of Transportation.  [The Texas Department of

1-17     Transportation shall, at the direction of the authority, implement

1-18     authority decisions.]

1-19           SECTION 3.  Section 3, Article 4413(37), Revised Statutes, is

1-20     amended by amending Subsections (d), (f), and (h) and adding

1-21     Subsections (i), (j), (k), and (l) to read as follows:

1-22           (d)  Appointments to the authority shall be made without

1-23     regard to race, color, disability [handicap], sex, religion, age,

1-24     or national origin of the appointees.

 2-1           (f)  It is a ground for removal from the authority if a

 2-2     member:

 2-3                 (1)  does not have at the time of appointment the

 2-4     qualifications required by Subsection (b) or is disqualified under

 2-5     Subsection (i) or (k) of this section;

 2-6                 (2)  does not maintain during service on the authority

 2-7     the qualifications required by Subsection (b) or becomes

 2-8     disqualified under Subsection (i) or (k) of this section;

 2-9                 (3)  cannot because of illness or disability discharge

2-10     the member's duties for a substantial part of the term for which

2-11     the member is appointed [because of illness or disability];  or

2-12                 (4)  is absent from more than half of the regularly

2-13     scheduled authority meetings that the member is eligible to attend

2-14     during a calendar year [unless the absence is excused by majority

2-15     vote of the authority].

2-16           (h)  If the director [chairman] has knowledge that a

2-17     potential ground for removal exists, the director [chairman] shall

2-18     notify the presiding officer of the authority of the potential

2-19     ground.  The presiding officer shall then notify the governor and

2-20     the attorney general  that a potential ground for removal exists.

2-21     If the potential ground for removal involves the presiding officer,

2-22     the director shall notify the next highest officer of the

2-23     authority, who shall notify the governor and the attorney general

2-24     that a potential ground for removal exists [of that fact].

2-25           (i)  A person is not eligible for appointment as a

2-26     representative of motor vehicle insurance consumers under

2-27     Subsection (b)(1) of this section if the person or the person's

 3-1     spouse:

 3-2                 (1)  is registered, certified, or licensed by an

 3-3     occupational regulatory agency in the field of motor vehicle

 3-4     insurance or law enforcement;

 3-5                 (2)  is an officer, employee, or paid consultant of a

 3-6     Texas trade association in the field of motor vehicle insurance or

 3-7     law enforcement;

 3-8                 (3)  is employed by or participates in the management

 3-9     of a business entity or other organization receiving funds from the

3-10     authority;

3-11                 (4)  owns or controls, directly or indirectly, more

3-12     than a 10-percent interest in a business entity or other

3-13     organization receiving funds from the authority; or

3-14                 (5)  uses or receives a substantial amount of tangible

3-15     goods, services, or funds from the authority, other than

3-16     reimbursement authorized by law for service on the board of the

3-17     authority.

3-18           (j)  For purposes of Subsection (i)(2) of this section, a

3-19     Texas trade association is a nonprofit, cooperative, and

3-20     voluntarily joined association of business or professional

3-21     competitors in this state designed to assist its members and its

3-22     industry or profession in dealing with mutual business or

3-23     professional problems and in promoting their common interest.

3-24           (k)  A person may not serve as a member of the authority or

3-25     act as the general counsel to the authority if the person is

3-26     required to register as a lobbyist under Chapter 305, Government

3-27     Code, because of the person's activities for compensation on behalf

 4-1     of a profession related to law enforcement or motor vehicle

 4-2     insurance.

 4-3           (l)  The director or the director's designee shall provide to

 4-4     members of the authority, as often as necessary, information

 4-5     regarding their qualifications for office under this article and

 4-6     their responsibilities under applicable laws relating to standards

 4-7     of conduct for state officers.

 4-8           SECTION 4.  Section 5, Article 4413(37), Revised Statutes, is

 4-9     amended by amending Subsection (a) and adding Subsections (c), (d),

4-10     and (e) to read as follows:

4-11           (a)  The governor shall designate a member of the authority

4-12     as the presiding officer of the authority to serve in that capacity

4-13     at the pleasure of the governor [At the first meeting of each

4-14     calendar year, the authority shall elect a chairman from its

4-15     members].

4-16           (c)  To be eligible to take office as a member of the

4-17     authority, a person appointed to the authority must complete at

4-18     least one course of a training program that complies with

4-19     Subsection (d).

4-20           (d)  The training program required by Subsection (c) must

4-21     provide information to the person regarding:

4-22                 (1)  the enabling legislation that created the

4-23     authority and its policymaking body to which the member is

4-24     appointed to serve;

4-25                 (2)  the programs operated by the authority;

4-26                 (3)  the role and functions of the authority;

4-27                 (4)  the rules of the authority and the department;

 5-1                 (5)  the current budget for the authority;

 5-2                 (6)  the results of the most recent formal audit of the

 5-3     authority;

 5-4                 (7)  the requirements of the:

 5-5                       (A)  open meetings law, Chapter 551, Government

 5-6     Code;

 5-7                       (B)  open records law, Chapter 552, Government

 5-8     Code; and

 5-9                       (C)  administrative procedure law, Chapter 2001,

5-10     Government Code;

5-11                 (8)  the requirements of the conflict-of-interest laws

5-12     and other laws relating to public officials; and

5-13                 (9)  any applicable ethics policies adopted by the

5-14     department or the Texas Ethics Commission.

5-15           (e)  A person appointed to the authority is entitled to

5-16     reimbursement for travel expenses incurred in attending the

5-17     training program required by Subsection (c) as provided by the

5-18     General Appropriations Act and as if the person were a member of

5-19     the authority.

5-20           SECTION 5.  Section 6, Article 4413(37), Revised Statutes, is

5-21     amended by amending Subsections (c) and (e) and adding Subsections

5-22     (f), (g), (h), and (i) to read as follows:

5-23           (c)  The authority may use only staff of the department

5-24     [employ and compensate staff in coordination with the Texas

5-25     Department of  Transportation,] and may delegate authority to the

5-26     staff as needed.

5-27           (e)  The authority may be provided [contract for] various

 6-1     services only by or through the department [with other state

 6-2     agencies] as needed to carry out its purposes, powers, and duties.

 6-3     These services may include, but are not limited to, legal services

 6-4     not provided by the attorney general, fiscal services,

 6-5     administrative services, and personnel services.  Except as

 6-6     provided by this section, the [The] authority may enter into

 6-7     contracts in its own name and on its own behalf with recipients of

 6-8     grants for purposes of this article.

 6-9           (f)  The department shall provide personnel and services to

6-10     the authority as agreed by the authority and the department.

6-11           (g)  The authority shall, in coordination with the

6-12     department, develop and implement policies that clearly separate

6-13     the policymaking responsibilities of the authority and the

6-14     management responsibilities of the department.

6-15           (h)  The authority shall develop and implement policies that

6-16     provide the public with a reasonable opportunity to appear before

6-17     the authority and to speak on any issue under its jurisdiction.

6-18           (i)  The authority shall prepare annually a complete and

6-19     detailed written report accounting for all funds received and

6-20     disbursed by the authority during the preceding fiscal year.  The

6-21     annual report must meet the reporting requirements applicable to

6-22     financial reporting provided in the General Appropriations Act.

6-23           SECTION 6.  Section 6A(b), Article 4413(37), Revised

6-24     Statutes, is amended to read as follows:

6-25           (b)  Pursuant to such determination, the authority may:

6-26                 (1)  notify the comptroller that payments made by an

6-27     insurer are sufficient; and

 7-1                 (2)  request the comptroller to draw warrants on the

 7-2     funds available to the authority [automobile theft prevention fund]

 7-3     for the purpose of refunding monies to an insurer.

 7-4           SECTION 7.  Section 8, Article 4413(37), Revised Statutes, is

 7-5     amended to read as follows:

 7-6           Sec. 8.  USE OF APPROPRIATED FUNDS [AUTOMOBILE THEFT

 7-7     PREVENTION FUND].  (a)  Money appropriated to the department for

 7-8     authority purposes [The automobile theft prevention fund is an

 7-9     account in the state treasury.]

7-10           [(b)  The treasurer shall administer the fund and may invest

7-11     the fund in the same manner as other state funds.]

7-12           [(c)  The comptroller shall deposit to the credit of the fund

7-13     any gift or grant of money accepted by the authority and money

7-14     collected under Sections 9 and 10 of this article.  The comptroller

7-15     shall draw warrants on the fund at the request of the authority,

7-16     except that a warrant may not exceed the amount in the fund.]

7-17           [(d)  Interest or income on amounts deposited in the

7-18     automobile theft prevention fund shall be credited to the fund.]

7-19           [(e)  Money credited to the fund] shall be used by the

7-20     authority to pay the department for administrative costs and to

7-21     achieve the purposes of this article, including:

7-22                 (1)  establishing and funding the automobile

7-23     registration program required by Section 9 of this article;

7-24                 (2)  providing financial support to law enforcement

7-25     agencies for economic automobile theft enforcement teams;

7-26                 (3)  providing financial support to law enforcement

7-27     agencies, local prosecutors, judicial agencies, and neighborhood,

 8-1     community, business, and nonprofit organizations for programs

 8-2     designed to reduce the incidence of economic automobile theft;

 8-3                 (4)  conducting educational programs designed to inform

 8-4     automobile owners of methods of preventing automobile theft;

 8-5                 (5)  providing equipment, for experimental purposes, to

 8-6     assist automobile owners in preventing automobile theft; and

 8-7                 (6)  establishing a uniform program to prevent stolen

 8-8     motor vehicles from entering Mexico.

 8-9           (b)  In any fiscal year, the amount of the administrative

8-10     expenses of the authority, including salaries, travel and marketing

8-11     expenses, and other overhead expenses may not exceed eight percent

8-12     of the total expenditures of the authority.

8-13           (c)  The cost of personnel and services provided to the

8-14     authority by the department and by the attorney general may be paid

8-15     only from appropriations made for authority purposes.

8-16     Appropriations made for authority purposes may not be used for any

8-17     other purpose.

8-18           SECTION 8.  Section 9(g), Article 4413(37), Revised Statutes,

8-19     is amended to read as follows:

8-20           (g)  The Department of Public Safety shall adopt rules to

8-21     administer the program and shall adopt fees in an amount sufficient

8-22     to recover the cost of administering the program.  [Money collected

8-23     by the department under this subsection shall be deposited to the

8-24     credit of the automobile theft prevention fund.]

8-25           SECTION 9.  Effective August 1, 1998, Section 10(b), Article

8-26     4413(37), Revised Statutes, is amended to read as follows:

8-27           (b)  An [Not later than March 1 of each year, each] insurer

 9-1     shall pay to the authority a fee equal to $1 multiplied by the

 9-2     total number of motor vehicle years of insurance for insurance

 9-3     policies delivered, issued for delivery, or renewed by the insurer

 9-4     [during the preceding calendar year].  The fee shall be paid not

 9-5     later than:

 9-6                 (1)  March 1 of each year for a policy issued,

 9-7     delivered, or renewed from July 1 through December 31 of the

 9-8     previous calendar year; and

 9-9                 (2)  August 1 of each year for a policy issued,

9-10     delivered, or renewed from January 1 through June 30 of that year.

9-11           SECTION 10.  The following provisions are repealed:

9-12                 (1)  Section 6A(e), Article 4413(37), Revised Statutes;

9-13                 (2)  Section 10(e), Article 4413(37), Revised Statutes;

9-14     and

9-15                 (3)  Section 12, Article 4413(37), Revised Statutes.

9-16           SECTION 11.  A request for a refund made under Section 6A,

9-17     Article 4413(37), Revised Statutes, is valid regardless of the date

9-18     the request was made or the payment was made for which a refund is

9-19     requested, except that an insurer that seeks either a refund of

9-20     fees or a determination of the sufficiency of payments must notify

9-21     the authority not later than the later of:

9-22                 (1)  November 1, 1997; or

9-23                 (2)  six months after the date the fees were paid to

9-24     the authority.

9-25           SECTION 12.  The changes in law made by this Act in the

9-26     qualifications of, and the prohibitions applying to, members of the

9-27     Automobile Theft Prevention Authority do not affect the entitlement

 10-1    of a member serving on the authority immediately before September

 10-2    1, 1997, to continue to carry out the functions of the authority

 10-3    for the remainder of the member's term.  The changes in law apply

 10-4    only to a member appointed on or after September 1, 1997.  This Act

 10-5    does not prohibit a person who is a member of the authority on

 10-6    September 1, 1997, from being reappointed to the authority if the

 10-7    person has the qualifications required for a member under Article

 10-8    4413(37), Revised Statutes, as amended by this Act.

 10-9          SECTION 13.  This Act takes effect September 1, 1997.

10-10          SECTION 14.  The importance of this legislation and the

10-11    crowded condition of the calendars in both houses create an

10-12    emergency and an imperative public necessity that the

10-13    constitutional rule requiring bills to be read on three several

10-14    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1387 was passed by the House on April

         8, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 1387 on May 14, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1387 was passed by the Senate, with

         amendments, on May 12, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor