1-1     By:  Gray (Senate Sponsor - Armbrister)               H.B. No. 1387

 1-2           (In the Senate - Received from the House April 9, 1997;

 1-3     April 10, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 2, 1997, reported favorably, as amended, by the

 1-5     following vote:  Yeas 13, Nays 0; May 2, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Nelson

 1-7     Amend H.B. No. 1387 in SECTION 4 of the bill, amended Section 5,

 1-8     Article 4413(37), Revised Statutes, by striking proposed

 1-9     Subsections (c) and (d) (page 4, line 16, through page 5, line 14,

1-10     engrossed version) and substituting the following:

1-11           (c)  To be eligible to take office as a member of the

1-12     authority, a person appointed to the authority must complete at

1-13     least one course of a training program that complies with

1-14     Subsection (d).

1-15           (d)  The training program required by Subsection (c) must

1-16     provide information to the person regarding:

1-17                 (1)  the enabling legislation that created the

1-18     authority and its policymaking body to which the member is

1-19     appointed to serve;

1-20                 (2)  the programs operated by the authority;

1-21                 (3)  the role and functions of the authority;

1-22                 (4)  the rules of the authority and the department;

1-23                 (5)  the current budget for the authority;

1-24                 (6)  the results of the most recent formal audit of the

1-25     authority;

1-26                 (7)  the requirements of the:

1-27                       (A)  open meetings law, Chapter 551, Government

1-28     Code;

1-29                       (B)  open records law, Chapter 552, Government

1-30     Code; and

1-31                       (C)  administrative procedure law, Chapter 2001,

1-32     Government Code;

1-33                 (8)  the requirements of the conflict-of-interest laws

1-34     and other laws relating to public officials; and

1-35                 (9)  any applicable ethics policies adopted by the

1-36     department or the Texas Ethics Commission.

1-37           (e)  A person appointed to the authority is entitled to

1-38     reimbursement for travel expenses incurred in attending the

1-39     training program required by Subsection (c) as provided by the

1-40     General Appropriations Act and as if the person were a member of

1-41     the authority.

1-42     COMMITTEE AMENDMENT NO. 2                               By:  Nelson

1-43     Amend H.B. 1387 as follows:

1-44           Strike SECTION 7 of the bill and renumber the subsequent

1-45     SECTIONS appropriately (House Engrossment page 6, line 26 through

1-46     page 7, line 4).

1-47                            A BILL TO BE ENTITLED

1-48                                   AN ACT

1-49     relating to the continuation and functions of the Automobile Theft

1-50     Prevention Authority.

1-51           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-52           SECTION 1.  Section 1, Article 4413(37), Revised Statutes, is

1-53     amended by adding Subdivisions (3) and (4) to read as follows:

1-54                 (3)  "Department" means the Texas Department of

1-55     Transportation.

1-56                 (4)  "Director" means the executive director of the

1-57     Texas Department of Transportation.

1-58           SECTION 2.  Section 2, Article 4413(37), Revised Statutes, is

1-59     amended to read as follows:

1-60           Sec. 2.  ESTABLISHMENT OF AUTHORITY.  The Automobile Theft

1-61     Prevention Authority is established in the Texas Department of

1-62     Transportation.  The authority is not an advisory body to the Texas

1-63     Department of Transportation.  [The Texas Department of

1-64     Transportation shall, at the direction of the authority, implement

 2-1     authority decisions.]

 2-2           SECTION 3.  Section 3, Article 4413(37), Revised Statutes, is

 2-3     amended by amending Subsections (d), (f), and (h) and adding

 2-4     Subsections (i), (j), (k), and (l) to read as follows:

 2-5           (d)  Appointments to the authority shall be made without

 2-6     regard to race, color, disability [handicap], sex, religion, age,

 2-7     or national origin of the appointees.

 2-8           (f)  It is a ground for removal from the authority if a

 2-9     member:

2-10                 (1)  does not have at the time of appointment the

2-11     qualifications required by Subsection (b) or is disqualified under

2-12     Subsection (i) or (k) of this section;

2-13                 (2)  does not maintain during service on the authority

2-14     the qualifications required by Subsection (b) or becomes

2-15     disqualified under Subsection (i) or (k) of this section;

2-16                 (3)  cannot because of illness or disability discharge

2-17     the member's duties for a substantial part of the term for which

2-18     the member is appointed [because of illness or disability];  or

2-19                 (4)  is absent from more than half of the regularly

2-20     scheduled authority meetings that the member is eligible to attend

2-21     during a calendar year [unless the absence is excused by majority

2-22     vote of the authority].

2-23           (h)  If the director [chairman] has knowledge that a

2-24     potential ground for removal exists, the director [chairman] shall

2-25     notify the presiding officer of the authority of the potential

2-26     ground.  The presiding officer shall then notify the governor and

2-27     the attorney general  that a potential ground for removal exists.

2-28     If the potential ground for removal involves the presiding officer,

2-29     the director shall notify the next highest officer of the

2-30     authority, who shall notify the governor and the attorney general

2-31     that a potential ground for removal exists [of that fact].

2-32           (i)  A person is not eligible for appointment as a

2-33     representative of motor vehicle insurance consumers under

2-34     Subsection (b)(1) of this section if the person or the person's

2-35     spouse:

2-36                 (1)  is registered, certified, or licensed by an

2-37     occupational regulatory agency in the field of motor vehicle

2-38     insurance or law enforcement;

2-39                 (2)  is an officer, employee, or paid consultant of a

2-40     Texas trade association in the field of motor vehicle insurance or

2-41     law enforcement;

2-42                 (3)  is employed by or participates in the management

2-43     of a business entity or other organization receiving funds from the

2-44     authority;

2-45                 (4)  owns or controls, directly or indirectly, more

2-46     than a 10-percent interest in a business entity or other

2-47     organization receiving funds from the authority; or

2-48                 (5)  uses or receives a substantial amount of tangible

2-49     goods, services, or funds from the authority, other than

2-50     reimbursement authorized by law for service on the board of the

2-51     authority.

2-52           (j)  For purposes of Subsection (i)(2) of this section, a

2-53     Texas trade association is a nonprofit, cooperative, and

2-54     voluntarily joined association of business or professional

2-55     competitors in this state designed to assist its members and its

2-56     industry or profession in dealing with mutual business or

2-57     professional problems and in promoting their common interest.

2-58           (k)  A person may not serve as a member of the authority or

2-59     act as the general counsel to the authority if the person is

2-60     required to register as a lobbyist under Chapter 305, Government

2-61     Code, because of the person's activities for compensation on behalf

2-62     of a profession related to law enforcement or motor vehicle

2-63     insurance.

2-64           (l)  The director or the director's designee shall provide to

2-65     members of the authority, as often as necessary, information

2-66     regarding their qualifications for office under this article and

2-67     their responsibilities under applicable laws relating to standards

2-68     of conduct for state officers.

2-69           SECTION 4.  Section 5, Article 4413(37), Revised Statutes, is

 3-1     amended by amending Subsection (a) and adding Subsections (c) and

 3-2     (d) to read as follows:

 3-3           (a)  The governor shall designate a member of the authority

 3-4     as the presiding officer of the authority to serve in that capacity

 3-5     at the pleasure of the governor [At the first meeting of each

 3-6     calendar year, the authority shall elect a chairman from its

 3-7     members].

 3-8           (c)  Before a member of the authority may assume the member's

 3-9     duties and before the member may be confirmed by the senate, the

3-10     member must complete at least one course of a training program that

3-11     complies with the requirements of Subsection (d).

3-12           (d)  A training program must provide information to the

3-13     member regarding:

3-14                 (1)  the enabling legislation that created the

3-15     authority and its policymaking body to which the member is

3-16     appointed to serve;

3-17                 (2)  the programs operated by the authority;

3-18                 (3)  the role and functions of the authority;

3-19                 (4)  the rules of the authority and the department;

3-20                 (5)  the current budget for the authority;

3-21                 (6)  the results of the most recent formal audit of the

3-22     authority;

3-23                 (7)  the requirements of the:

3-24                       (A)  open meetings law, Chapter 551, Government

3-25     Code;

3-26                       (B)  open records law, Chapter 552, Government

3-27     Code; and

3-28                       (C)  administrative procedure law, Chapter 2001,

3-29     Government Code;

3-30                 (8)  the requirements of the conflict-of-interest laws

3-31     and other laws relating to public officials; and

3-32                 (9)  any applicable ethics policies adopted by the

3-33     department or the Texas Ethics Commission.

3-34           SECTION 5.  Section 6, Article 4413(37), Revised Statutes, is

3-35     amended by amending Subsections (c) and (e) and adding Subsections

3-36     (f), (g), (h), and (i) to read as follows:

3-37           (c)  The authority may use only staff of the department

3-38     [employ and compensate staff in coordination with the Texas

3-39     Department of  Transportation,] and may delegate authority to the

3-40     staff as needed.

3-41           (e)  The authority may be provided [contract for] various

3-42     services only by or through the department [with other state

3-43     agencies] as needed to carry out its purposes, powers, and duties.

3-44     These services may include, but are not limited to, legal services

3-45     not provided by the attorney general, fiscal services,

3-46     administrative services, and personnel services.  Except as

3-47     provided by this section, the [The] authority may enter into

3-48     contracts in its own name and on its own behalf with recipients of

3-49     grants for purposes of this article.

3-50           (f)  The department shall provide personnel and services to

3-51     the authority as agreed by the authority and the department.

3-52           (g)  The authority shall, in coordination with the

3-53     department, develop and implement policies that clearly separate

3-54     the policymaking responsibilities of the authority and the

3-55     management responsibilities of the department.

3-56           (h)  The authority shall develop and implement policies that

3-57     provide the public with a reasonable opportunity to appear before

3-58     the authority and to speak on any issue under its jurisdiction.

3-59           (i)  The authority shall prepare annually a complete and

3-60     detailed written report accounting for all funds received and

3-61     disbursed by the authority during the preceding fiscal year.  The

3-62     annual report must meet the reporting requirements applicable to

3-63     financial reporting provided in the General Appropriations Act.

3-64           SECTION 6.  Section 6A(b), Article 4413(37), Revised

3-65     Statutes, is amended to read as follows:

3-66           (b)  Pursuant to such determination, the authority may:

3-67                 (1)  notify the comptroller that payments made by an

3-68     insurer are sufficient; and

3-69                 (2)  request the comptroller to draw warrants on the

 4-1     funds available to the authority [automobile theft prevention fund]

 4-2     for the purpose of refunding monies to an insurer.

 4-3           SECTION 7.  Section 7, Article 4413(37), Revised Statutes, is

 4-4     amended by adding Subsection (c) to read as follows:

 4-5           (c)  The authority shall contract with the attorney general

 4-6     at an agreed cost for the use and enhancement of existing neural

 4-7     computer equipment to investigate, apprehend, and prosecute

 4-8     organized criminal activity involved in automobile theft.

 4-9           SECTION 8.  Section 8, Article 4413(37), Revised Statutes, is

4-10     amended to read as follows:

4-11           Sec. 8.  USE OF APPROPRIATED FUNDS [AUTOMOBILE THEFT

4-12     PREVENTION FUND].  (a)  Money appropriated to the department for

4-13     authority purposes [The automobile theft prevention fund is an

4-14     account in the state treasury.]

4-15           [(b)  The treasurer shall administer the fund and may invest

4-16     the fund in the same manner as other state funds.]

4-17           [(c)  The comptroller shall deposit to the credit of the fund

4-18     any gift or grant of money accepted by the authority and money

4-19     collected under Sections 9 and 10 of this article.  The comptroller

4-20     shall draw warrants on the fund at the request of the authority,

4-21     except that a warrant may not exceed the amount in the fund.]

4-22           [(d)  Interest or income on amounts deposited in the

4-23     automobile theft prevention fund shall be credited to the fund.]

4-24           [(e)  Money credited to the fund] shall be used by the

4-25     authority to pay the department for administrative costs and to

4-26     achieve the purposes of this article, including:

4-27                 (1)  establishing and funding the automobile

4-28     registration program required by Section 9 of this article;

4-29                 (2)  providing financial support to law enforcement

4-30     agencies for economic automobile theft enforcement teams;

4-31                 (3)  providing financial support to law enforcement

4-32     agencies, local prosecutors, judicial agencies, and neighborhood,

4-33     community, business, and nonprofit organizations for programs

4-34     designed to reduce the incidence of economic automobile theft;

4-35                 (4)  conducting educational programs designed to inform

4-36     automobile owners of methods of preventing automobile theft;

4-37                 (5)  providing equipment, for experimental purposes, to

4-38     assist automobile owners in preventing automobile theft; and

4-39                 (6)  establishing a uniform program to prevent stolen

4-40     motor vehicles from entering Mexico.

4-41           (b)  In any fiscal year, the amount of the administrative

4-42     expenses of the authority, including salaries, travel and marketing

4-43     expenses, and other overhead expenses may not exceed eight percent

4-44     of the total expenditures of the authority.

4-45           (c)  The cost of personnel and services provided to the

4-46     authority by the department and by the attorney general may be paid

4-47     only from appropriations made for authority purposes.

4-48     Appropriations made for authority purposes may not be used for any

4-49     other purpose.

4-50           SECTION 9.  Section 9(g), Article 4413(37), Revised Statutes,

4-51     is amended to read as follows:

4-52           (g)  The Department of Public Safety shall adopt rules to

4-53     administer the program and shall adopt fees in an amount sufficient

4-54     to recover the cost of administering the program.  [Money collected

4-55     by the department under this subsection shall be deposited to the

4-56     credit of the automobile theft prevention fund.]

4-57           SECTION 10.  Effective August 1, 1998, Section 10(b), Article

4-58     4413(37), Revised Statutes, is amended to read as follows:

4-59           (b)  An [Not later than March 1 of each year, each] insurer

4-60     shall pay to the authority a fee equal to $1 multiplied by the

4-61     total number of motor vehicle years of insurance for insurance

4-62     policies delivered, issued for delivery, or renewed by the insurer

4-63     [during the preceding calendar year].  The fee shall be paid not

4-64     later than:

4-65                 (1)  March 1 of each year for a policy issued,

4-66     delivered, or renewed from July 1 through December 31 of the

4-67     previous calendar year; and

4-68                 (2)  August 1 of each year for a policy issued,

4-69     delivered, or renewed from January 1 through June 30 of that year.

 5-1           SECTION 11.  The following provisions are repealed:

 5-2                 (1)  Section 6A(e), Article 4413(37), Revised Statutes;

 5-3                 (2)  Section 10(e), Article 4413(37), Revised Statutes;

 5-4     and

 5-5                 (3)  Section 12, Article 4413(37), Revised Statutes.

 5-6           SECTION 12.  A request for a refund made under Section 6A,

 5-7     Article 4413(37), Revised Statutes, is valid regardless of the date

 5-8     the request was made or the payment was made for which a refund is

 5-9     requested, except that an insurer that seeks either a refund of

5-10     fees or a determination of the sufficiency of payments must notify

5-11     the authority not later than the later of:

5-12                 (1)  November 1, 1997; or

5-13                 (2)  six months after the date the fees were paid to

5-14     the authority.

5-15           SECTION 13.  The changes in law made by this Act in the

5-16     qualifications of, and the prohibitions applying to, members of the

5-17     Automobile Theft Prevention Authority do not affect the entitlement

5-18     of a member serving on the authority immediately before September

5-19     1, 1997, to continue to carry out the functions of the authority

5-20     for the remainder of the member's term.  The changes in law apply

5-21     only to a member appointed on or after September 1, 1997.  This Act

5-22     does not prohibit a person who is a member of the authority on

5-23     September 1, 1997, from being reappointed to the authority if the

5-24     person has the qualifications required for a member under Article

5-25     4413(37), Revised Statutes, as amended by this Act.

5-26           SECTION 14.  This Act takes effect September 1, 1997.

5-27           SECTION 15.  The importance of this legislation and the

5-28     crowded condition of the calendars in both houses create an

5-29     emergency and an imperative public necessity that the

5-30     constitutional rule requiring bills to be read on three several

5-31     days in each house be suspended, and this rule is hereby suspended.

5-32                                  * * * * *