By Armbrister                                    S.B. No. 355

      75R1785 DRH-D                           

                                A BILL TO BE ENTITLED

 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 3, Article 4413(37), Revised Statutes, is

1-12     amended by amending Subsections (d), (f), and (h) and adding

1-13     Subsections (i), (j), (k), and (l) to read as follows:

1-14           (d)  Appointments to the authority shall be made without

1-15     regard to race, color, disability [handicap], sex, religion, age,

1-16     or national origin of the appointees.

1-17           (f)  It is a ground for removal from the authority if a

1-18     member:

1-19                 (1)  does not have at the time of appointment the

1-20     qualifications required by Subsection (b) or is disqualified under

1-21     Subsection (i) or (k) of this section;

1-22                 (2)  does not maintain during service on the authority

1-23     the qualifications required by Subsection (b) or becomes

1-24     disqualified under Subsection (i) or (k) of this section;

 2-1                 (3)  cannot because of illness or disability discharge

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

 2-3     the member is appointed [because of illness or disability];  or

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

 2-5     scheduled authority meetings that the member is eligible to attend

 2-6     during a calendar year unless the absence is excused by majority

 2-7     vote of the authority.

 2-8           (h)  If the director [chairman] has knowledge that a

 2-9     potential ground for removal exists, the director [chairman] shall

2-10     notify the presiding officer of the authority of the potential

2-11     ground.  The presiding officer shall then notify the governor and

2-12     the attorney general  that a potential ground for removal exists.

2-13     If the potential ground for removal involves the presiding officer,

2-14     the director shall notify the next highest officer of the

2-15     authority, who shall notify the governor and the attorney general

2-16     that a potential ground for removal exists [of that fact].

2-17           (i)  A person is not eligible for appointment as a

2-18     representative of motor vehicle insurance consumers under

2-19     Subsection (b)(1) of this section if the person or the person's

2-20     spouse:

2-21                 (1)  is registered, certified, or licensed by an

2-22     occupational regulatory agency in the field of motor vehicle

2-23     insurance or law enforcement;

2-24                 (2)  is an officer, employee, or paid consultant of a

2-25     Texas trade association in the field of motor vehicle insurance or

2-26     law enforcement;

2-27                 (3)  is employed by or participates in the management

 3-1     of a business entity or other organization receiving funds from the

 3-2     authority;

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

 3-4     than a 10 percent interest in a business entity or other

 3-5     organization receiving funds from the authority; or

 3-6                 (5)  uses or receives a substantial amount of tangible

 3-7     goods, services, or funds from the authority, other than

 3-8     reimbursement authorized by law for service on the board of the

 3-9     authority.

3-10           (j)  For purposes of Subsection (i)(2) of this section, a

3-11     Texas trade association is a nonprofit, cooperative, and

3-12     voluntarily joined association of business or professional

3-13     competitors in this state designed to assist its members and its

3-14     industry or profession in dealing with mutual business or

3-15     professional problems and in promoting their common interest.

3-16           (k)  A person may not serve as a member of the authority or

3-17     act as the general counsel to the authority if the person is

3-18     required to register as a lobbyist under Chapter 305, Government

3-19     Code, because of the person's activities for compensation on behalf

3-20     of a profession related to law enforcement or motor vehicle

3-21     insurance.

3-22           (l)  The director or the director's designee shall provide to

3-23     members of the authority, as often as necessary, information

3-24     regarding their qualifications for office under this article and

3-25     their responsibilities under applicable laws relating to standards

3-26     of conduct for state officers.

3-27           SECTION 3.  Section 5, Article 4413(37), Revised Statutes, is

 4-1     amended by amending Subsection (a) and adding Subsections (c) and

 4-2     (d) to read as follows:

 4-3           (a)  The governor shall designate a member of the authority

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

 4-5     at the pleasure of the governor [At the first meeting of each

 4-6     calendar year, the authority shall elect a chairman from its

 4-7     members].

 4-8           (c)  Before a member of the authority may assume the member's

 4-9     duties and before the member may be confirmed by the senate, the

4-10     member must complete at least one course of a training program that

4-11     complies with the requirements of Subsection (d).

4-12           (d)  A training program must provide information to the

4-13     member regarding:

4-14                 (1)  the enabling legislation that created the

4-15     authority and its policymaking body to which the member is

4-16     appointed to serve;

4-17                 (2)  the programs operated by the authority;

4-18                 (3)  the role and functions of the authority;

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

4-20                 (5)  the current budget for the authority;

4-21                 (6)  the results of the most recent formal audit of the

4-22     authority;

4-23                 (7)  the requirements of the:

4-24                       (A)  open meetings law, Chapter 551, Government

4-25     Code;

4-26                       (B)  open records law, Chapter 552, Government

4-27     Code; and

 5-1                       (C)  administrative procedure law, Chapter 2001,

 5-2     Government Code;

 5-3                 (8)  the requirements of the conflict of interest laws

 5-4     and other laws relating to public officials; and

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

 5-6     department or the Texas Ethics Commission.

 5-7           SECTION 4.  Section 6, Article 4413(37), Revised Statutes, is

 5-8     amended by amending Subsections (c) and (e) and adding Subsections

 5-9     (f), (g), (h), and (i) to read as follows:

5-10           (c)  The authority may contract only with the department to

5-11     provide [employ and compensate] staff [in coordination with the

5-12     Texas Department of  Transportation,] and may delegate authority to

5-13     the staff as needed.

5-14           (e)  The authority may contract for various services only

5-15     with or through the department [other state agencies] as needed to

5-16     carry out its purposes, powers, and duties.  These services may

5-17     include, but are not limited to, legal services, fiscal services,

5-18     administrative services, and personnel services.  [The authority

5-19     may enter into contracts in its own name and on its own behalf.]

5-20           (f)  The department shall provide personnel and services to

5-21     the authority as agreed in a contract under Subsections (c) and (e)

5-22     of this section.

5-23           (g)  The authority shall develop and implement policies that

5-24     clearly separate the policymaking responsibilities of the authority

5-25     and the management responsibilities of the department.

5-26           (h)  The authority shall develop and implement policies that

5-27     provide the public with a reasonable opportunity to appear before

 6-1     the authority and to speak on any issue under its jurisdiction.

 6-2           (i)  The authority shall prepare annually a complete and

 6-3     detailed written report accounting for all funds received and

 6-4     disbursed by the authority during the preceding fiscal year.  The

 6-5     annual report must meet the reporting requirements applicable to

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

 6-7           SECTION 5.  Section 6A(b), Article 4413(37), Revised

 6-8     Statutes, is amended to read as follows:

 6-9           (b)  Pursuant to such determination, the authority may:

6-10                 (1)  notify the comptroller that payments made by an

6-11     insurer are sufficient; and

6-12                 (2)  request the comptroller to draw warrants on the

6-13     funds available to the authority [automobile theft prevention fund]

6-14     for the purpose of refunding monies to an insurer.

6-15           SECTION 6.  Section 8, Article 4413(37), Revised Statutes, is

6-16     amended to read as follows:

6-17           Sec. 8.  USE OF APPROPRIATED FUNDS [AUTOMOBILE THEFT

6-18     PREVENTION FUND].  (a)  Money appropriated to the department for

6-19     authority purposes [The automobile theft prevention fund is an

6-20     account in the state treasury.]

6-21           [(b)  The treasurer shall administer the fund and may invest

6-22     the fund in the same manner as other state funds.]

6-23           [(c)  The comptroller shall deposit to the credit of the fund

6-24     any gift or grant of money accepted by the authority and money

6-25     collected under Sections 9 and 10 of this article.  The comptroller

6-26     shall draw warrants on the fund at the request of the authority,

6-27     except that a warrant may not exceed the amount in the fund.]

 7-1           [(d)  Interest or income on amounts deposited in the

 7-2     automobile theft prevention fund shall be credited to the fund.]

 7-3           [(e)  Money credited to the fund] shall be used by the

 7-4     authority to pay the department for contracted administrative costs

 7-5     and to achieve the purposes of this article, including:

 7-6                 (1)  establishing and funding the automobile

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

 7-8                 (2)  providing financial support to law enforcement

 7-9     agencies for economic automobile theft enforcement teams;

7-10                 (3)  providing financial support to law enforcement

7-11     agencies, local prosecutors, judicial agencies, and neighborhood,

7-12     community, business, and nonprofit organizations for programs

7-13     designed to reduce the incidence of economic automobile theft;

7-14                 (4)  conducting educational programs designed to inform

7-15     automobile owners of methods of preventing automobile theft;

7-16                 (5)  providing equipment, for experimental purposes, to

7-17     assist automobile owners in preventing automobile theft; and

7-18                 (6)  establishing a uniform program to prevent stolen

7-19     motor vehicles from entering Mexico.

7-20           (b)  In any fiscal year, the amount of the administrative

7-21     expenses of the authority, including salaries, travel and marketing

7-22     expenses, and other overhead expenses may not exceed eight percent

7-23     of the total expenditures of the authority.

7-24           (c)  The cost of personnel and services provided to the

7-25     authority by the department may be paid only from appropriations

7-26     made for authority purposes.  Appropriations made for authority

7-27     purposes may not be used for any other purpose.

 8-1           SECTION 7.  Section 9(g), Article 4413(37), Revised Statutes,

 8-2     is amended to read as follows:

 8-3           (g)  The Department of Public Safety shall adopt rules to

 8-4     administer the program and shall adopt fees in an amount sufficient

 8-5     to recover the cost of administering the program.  [Money collected

 8-6     by the department under this subsection shall be deposited to the

 8-7     credit of the automobile theft prevention fund.]

 8-8           SECTION 8.  Section 10(b), Article 4413(37), Revised

 8-9     Statutes, is amended to read as follows:

8-10           (b)  An [Not later than March 1 of each year, each] insurer

8-11     shall pay to the authority a fee equal to $1 multiplied by the

8-12     total number of motor vehicle years of insurance for insurance

8-13     policies delivered, issued for delivery, or renewed by the insurer

8-14     [during the preceding calendar year].  The fee shall be paid not

8-15     later than:

8-16                 (1)  March 1 of each year for a policy issued,

8-17     delivered, or renewed from July 1 through December 31 of the

8-18     previous calendar year; and

8-19                 (2)  August 1 of each year for a policy issued,

8-20     delivered, or renewed from January 1 through June 30 of that year.

8-21           SECTION 9.  The following provisions are repealed:

8-22                 (1)  Section 10(e), Article 4413(37), Revised Statutes;

8-23     and

8-24                 (2)  Section 12, Article 4413(37), Revised Statutes.

8-25           SECTION 10.  The changes in law made by this Act in the

8-26     qualifications of, and the prohibitions applying to, members of the

8-27     Automobile Theft Prevention Authority do not affect the entitlement

 9-1     of a member serving on the authority immediately before September

 9-2     1, 1997, to continue to carry out the functions of the authority

 9-3     for the remainder of the member's term.  The changes in law apply

 9-4     only to a member appointed on or after September 1, 1997.  This Act

 9-5     does not prohibit a person who is a member of the authority on

 9-6     September 1, 1997, from being reappointed to the authority if the

 9-7     person has the qualifications required for a member under Article

 9-8     4413(37), Revised Statutes, as amended by this Act.

 9-9           SECTION 11.  This Act takes effect September 1, 1997.

9-10           SECTION 12.  The importance of this legislation and the

9-11     crowded condition of the calendars in both houses create an

9-12     emergency and an imperative public necessity that the

9-13     constitutional rule requiring bills to be read on three several

9-14     days in each house be suspended, and this rule is hereby suspended.