AN ACT

 1-1     relating to the inspection and maintenance of certain motor

 1-2     vehicles for air pollution control; providing criminal penalties.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (d), Section 382.037, Health and

 1-5     Safety Code, is amended to read as follows:

 1-6           (d)  On adoption of a resolution by the commission and after

 1-7     proper notice, the Department of Public Safety of the State of

 1-8     Texas shall implement a system that requires, as a condition of

 1-9     obtaining a safety inspection certificate issued under Chapter 548,

1-10     Transportation Code [Section 140 or 141, Uniform Act Regulating

1-11     Traffic on Highways (Article 6701d, Vernon's Texas Civil

1-12     Statutes)], in a county that is included in a vehicle emissions

1-13     inspection and maintenance program under Subchapter F of that

1-14     chapter [Section 142, Uniform Act Regulating Traffic on Highways

1-15     (Article 6701d, Vernon's Texas Civil Statutes)], that the vehicle,

1-16     unless the vehicle is not covered by the system, be annually or

1-17     biennially inspected under the vehicle emissions inspection and

1-18     maintenance program as required by the state's [Texas] air quality

1-19     state implementation plan [or Section 382.0371].  The Department of

1-20     Public Safety shall implement such a system when it is required by

1-21     any provision of federal or state law, including any provision of

1-22     the state's [Texas] air quality state implementation plan.  [The

1-23     Department of Public Safety may not require or accept verification

 2-1     of compliance other than a vehicle inspection certificate.]

 2-2           SECTION 2.  Subchapter B, Chapter 382, Health and Safety

 2-3     Code, is amended by adding Sections 382.0372 through 382.0375 to

 2-4     read as follows:

 2-5           Sec. 382.0372.  VEHICLES SUBJECT TO PROGRAM; EXEMPTIONS.

 2-6     (a)  The inspection and maintenance program applies to any

 2-7     gasoline-powered vehicle that is:

 2-8                 (1)  required to be registered in and is primarily

 2-9     operated in Dallas, Tarrant, El Paso, or Harris County; and

2-10                 (2)  at least two and less than 25 years old.

2-11           (b)  In addition to a vehicle described by Subsection (a),

2-12     the program applies to:

2-13                 (1)  a vehicle with United States governmental plates

2-14     primarily operated in Dallas, Tarrant, El Paso, or Harris County;

2-15                 (2)  a vehicle operated on a federal facility in

2-16     Dallas, Tarrant, El Paso, or Harris County; and

2-17                 (3)  a vehicle primarily operated in Dallas, Tarrant,

2-18     El Paso, or Harris County that is exempt from motor vehicle

2-19     registration requirements or eligible under Chapter 502,

2-20     Transportation Code, to display an "exempt" license plate.

2-21           (c)  The Department of Public Safety of the State of Texas

2-22     may waive program requirements, in accordance with standards

2-23     adopted by the commission, for certain vehicles and vehicle owners,

2-24     including:

2-25                 (1)  the registered owner of a vehicle who:

 3-1                       (A)  cannot afford to comply with the program,

 3-2     based on reasonable income standards; or

 3-3                       (B)  has spent a reasonable amount of money, set

 3-4     by the commission, to repair the vehicle, without bringing the

 3-5     vehicle into compliance with emissions standards; and

 3-6                 (2)  a vehicle that cannot be brought into compliance

 3-7     with emissions standards by performing repairs.

 3-8           (d)  The program does not apply to a:

 3-9                 (1)  motorcycle;

3-10                 (2)  slow-moving vehicle as defined by Section 547.001,

3-11     Transportation Code; or

3-12                 (3)  circus vehicle.

3-13           Sec. 382.0373.  REMOTE SENSING PROGRAM COMPONENT.  (a)  The

3-14     commission and the Department of Public Safety of the State of

3-15     Texas jointly shall develop a program component for enforcing

3-16     emissions standards by use of remote or automatic emissions

3-17     detection and analysis equipment.

3-18           (b)  The program component may be employed in any county

3-19     designated as a nonattainment area within the meaning of Section

3-20     107(d) of the Clean Air Act (42 U.S.C. Section 7407).

3-21           Sec. 382.0374.  INSPECTION EQUIPMENT AND PROCEDURES.

3-22     (a)  The commission by rule may adopt:

3-23                 (1)  standards and specifications for motor vehicle

3-24     emissions testing equipment;

3-25                 (2)  recordkeeping and reporting procedures; and

 4-1                 (3)  measurable emissions standards a vehicle must meet

 4-2     to pass the inspection.

 4-3           (b)  The Department of Public Safety of the State of Texas by

 4-4     rule shall adopt:

 4-5                 (1)  testing procedures in accordance with motor

 4-6     vehicle emissions testing equipment specifications; and

 4-7                 (2)  procedures for issuing or denying an emissions

 4-8     inspection certificate.

 4-9           Sec. 382.0375.  COLLECTION OF DATA; REPORT.  (a)  The

4-10     commission and the Department of Public Safety of the State of

4-11     Texas may collect inspection and maintenance information derived

4-12     from the emissions inspection and maintenance program, including:

4-13                 (1)  inspection results;

4-14                 (2)  inspection station information;

4-15                 (3)  information regarding vehicles operated on federal

4-16     facilities;

4-17                 (4)  vehicle registration information; and

4-18                 (5)  other data the United States Environmental

4-19     Protection Agency requires.

4-20           (b)  The commission shall:

4-21                 (1)  report the information to the United States

4-22     Environmental Protection Agency; and

4-23                 (2)  compare the information on inspection results with

4-24     registration information for enforcement purposes.

4-25           SECTION 3.  Subchapter A, Chapter 502, Transportation Code,

 5-1     is amended by adding Section 502.009 to read as follows:

 5-2           Sec. 502.009.  MOTOR VEHICLE EMISSIONS INSPECTION AND

 5-3     MAINTENANCE REQUIREMENTS.  (a)  The Department of Public Safety

 5-4     shall ensure compliance with the motor vehicle emissions inspection

 5-5     and maintenance program through a vehicle inspection sticker-based

 5-6     enforcement system except as provided by this section.  Subsections

 5-7     (b)-(e) apply only if the United States Environmental Protection

 5-8     Agency determines that the state has not demonstrated, as required

 5-9     by 40 C.F.R. Section 51.361, that sticker-based enforcement of the

5-10     program is more effective than registration-based enforcement and

5-11     gives the Texas Natural Resource Conservation Commission or the

5-12     governor written notification that the reregistration-based

5-13     enforcement of the program, as described by those subsections, will

5-14     be required.  If Subsections (b)-(e) are made applicable as

5-15     provided by this subsection, the department shall terminate

5-16     reregistration-based enforcement of the program under those

5-17     subsections on the date the United States Environmental Protection

5-18     Agency gives the Texas Natural Resource Conservation Commission or

5-19     a person the commission designates written notification that

5-20     reregistration-based enforcement is not required for the state

5-21     implementation plan.

5-22           (b)  The department may not register a motor vehicle if the

5-23     department receives from the Texas Natural Resource Conservation

5-24     Commission or the Department of Public Safety notification that the

5-25     registered owner of the vehicle has not complied with Subchapter F,

 6-1     Chapter 548.

 6-2           (c)  The county tax assessor-collector may not register a

 6-3     vehicle denied registration under Subsection (b) unless the tax

 6-4     assessor-collector has verification that the registered vehicle

 6-5     owner is in compliance with Subchapter F, Chapter 548.

 6-6           (d)  The department, the Texas Natural Resource Conservation

 6-7     Commission, and the Department of Public Safety shall enter an

 6-8     agreement regarding the responsibilities for costs associated with

 6-9     implementing this section.

6-10           (e)  A county tax assessor-collector is not liable to any

6-11     person for refusing to register a motor vehicle because of the

6-12     person's failure to provide verification of the person's compliance

6-13     with Subchapter F, Chapter 548.

6-14           SECTION 4.  Section 548.001, Transportation Code, is amended

6-15     to read as follows:

6-16           Sec. 548.001.  DEFINITIONS.  In this chapter:

6-17                 (1)  "Commercial motor vehicle" means a self-propelled

6-18     or towed vehicle, other than a farm vehicle with a gross weight,

6-19     registered weight, or gross weight rating of less than 48,000

6-20     pounds, that is used on a public highway to transport passengers or

6-21     cargo if:

6-22                       (A)  the vehicle or combination of vehicles has a

6-23     gross weight, registered weight, or gross weight rating of more

6-24     than 26,000 pounds;

6-25                       (B)  the vehicle is designed to transport more

 7-1     than 15 passengers, including the driver; or

 7-2                       (C)  the vehicle is used to transport hazardous

 7-3     materials in a quantity requiring placarding by a regulation issued

 7-4     under the Hazardous Materials Transportation Act (49 U.S.C. Section

 7-5     1801 et seq.).

 7-6                 (2)  "Commission" means the Public Safety Commission.

 7-7                 (3)  "Conservation commission" means the Texas Natural

 7-8     Resource Conservation Commission.

 7-9                 (4)  "Department" means the Department of Public

7-10     Safety.

7-11                 (5)  "Farm vehicle" has the meaning assigned by the

7-12     federal motor carrier safety regulations.

7-13                 (6) [(5)]  "Federal motor carrier safety regulation"

7-14     has the meaning assigned by Section 549.001.

7-15                 (7) [(6)]  "Inspection station" means a facility

7-16     certified to conduct inspections of vehicles under this chapter.

7-17                 (8) [(7)]  "Inspector" means an individual certified to

7-18     conduct inspections of vehicles under this chapter.

7-19                 (9)  "Nonattainment area" means an area so designated

7-20     within the meaning of Section 107(d) of the Clean Air Act (42

7-21     U.S.C. Section 7407).

7-22           SECTION 5.  Section 548.251, Transportation Code, is amended

7-23     to read as follows:

7-24           Sec. 548.251.  DEPARTMENT TO PROVIDE INSPECTION CERTIFICATES

7-25     AND VERIFICATION FORMS.  The department shall provide serially

 8-1     numbered inspection certificates and verification forms to

 8-2     inspection stations.  The department may issue a unique inspection

 8-3     certificate for:

 8-4                 (1)  a commercial motor vehicle inspected under Section

 8-5     548.201; or

 8-6                 (2)  a vehicle inspected under Subchapter F [Section

 8-7     548.301(a)].

 8-8           SECTION 6.  Section 548.301, Transportation Code, is amended

 8-9     to read as follows:

8-10           Sec. 548.301.  COMMISSION TO ESTABLISH PROGRAM.  (a)  The

8-11     commission shall establish a motor vehicle emissions inspection and

8-12     maintenance program for vehicles as [registered in a county for

8-13     which the conservation commission has adopted a resolution

8-14     requesting the department to establish such a program if:]

8-15                 [(1)  the county does not meet the national ambient air

8-16     quality standards for ozone, carbon monoxide, or another

8-17     vehicle-related pollutant; or]

8-18                 [(2)  the program is] required [in the county] by any

8-19     law of the United States or[, including] the state's [Texas] air

8-20     quality state implementation plan.

8-21           (b)  The commission by rule may establish a motor vehicle

8-22     emissions inspection and maintenance program for vehicles specified

8-23     by the conservation commission [registered] in a county for which

8-24     the conservation commission has adopted a resolution requesting the

8-25     commission [department] to establish such a program and for which

 9-1     the county and the municipality with the largest population in the

 9-2     county by resolution have formally requested a proactive air

 9-3     quality plan consisting of such a program.

 9-4           (c)  A program established under Subsection (b) may not

 9-5     include reregistration-based [registration-based] enforcement

 9-6     unless the county by resolution requests reregistration-based

 9-7     enforcement [Texas Department of Transportation includes the

 9-8     program in its registration enforcement system].

 9-9           (d)  A vehicle emissions inspection under this section may be

9-10     performed by the same facility that performs a safety inspection if

9-11     the facility is authorized and certified by the department to

9-12     perform the vehicle emissions inspection and certified by the

9-13     department to perform the safety inspection.

9-14           SECTION 7.  Section 548.302, Transportation Code, is amended

9-15     to read as follows:

9-16           Sec. 548.302.  COMMISSION TO ADOPT STANDARDS.  The commission

9-17     shall:

9-18                 (1)  adopt standards for emissions-related inspection

9-19     criteria consistent with requirements of the United States and the

9-20     conservation commission applicable to a county in which a program

9-21     is established under this subchapter; and

9-22                 (2)  develop and impose requirements necessary to

9-23     ensure that an inspection certificate is not issued to a vehicle

9-24     subject to a program established under this subchapter unless the

9-25     vehicle has passed a motor vehicle emissions inspection at a

 10-1    facility authorized and certified by the department [Section

 10-2    548.301].

 10-3          SECTION 8.  Section 548.303, Transportation Code, is amended

 10-4    to read as follows:

 10-5          Sec. 548.303.  PROGRAM ADMINISTRATION.  [(a)]  The commission

 10-6    shall administer the motor vehicle emissions inspection and

 10-7    maintenance program under this subchapter [until the date a vehicle

 10-8    emissions inspection program administered by the conservation

 10-9    commission is implemented under the Clean Air Act].

10-10          [(b)  The executive director of the conservation commission

10-11    shall notify the commission of the date the conservation

10-12    commission's program will become effective.]

10-13          SECTION 9.  Section 548.304, Transportation Code, is amended

10-14    to read as follows:

10-15          Sec. 548.304.  STATIONS LICENSED TO CONDUCT EMISSIONS

10-16    INSPECTIONS [REINSPECTIONS].  (a)  The department [conservation

10-17    commission] may authorize and certify [license] inspection stations

10-18    as necessary to implement the emissions-related inspection

10-19    [reinspection] requirements of the motor vehicle emissions

10-20    inspection and maintenance program established under this

10-21    subchapter if the station meets the department's certification

10-22    requirements [Section 548.301].

10-23          (b)  The [At the request of the conservation commission, the]

10-24    department shall provide inspection certificates for distribution

10-25    and issuance at inspection [centralized reinspection] stations

 11-1    certified [licensed] by the department [conservation commission].

 11-2          [(c)  Notwithstanding Section 548.053(a), if an

 11-3    emissions-related inspection under Section 548.301 discloses the

 11-4    necessity for adjustment, correction, or repair, the conservation

 11-5    commission may by rule require that the vehicle be reinspected at a

 11-6    specified inspection station authorized and licensed by the

 11-7    conservation commission to ensure that the emissions-related

 11-8    adjustment, correction, or repair is made.]

 11-9          SECTION 10.  Subchapter F, Chapter 548, Transportation Code,

11-10    is amended by adding Section 548.306 to read as follows:

11-11          Sec. 548.306.  EXCESSIVE MOTOR VEHICLE EMISSIONS.  (a)  This

11-12    section applies to a motor vehicle registered in:

11-13                (1)  a county or a portion of a county designated by

11-14    department rule in accordance with standards provided by the United

11-15    States Environmental Protection Agency; or

11-16                (2)  one of the following areas:

11-17                      (A)  the part of the Dallas/Fort Worth ozone

11-18    nonattainment area that consists of Collin, Dallas, Denton, and

11-19    Tarrant counties;

11-20                      (B)  the part of the El Paso ozone nonattainment

11-21    area that consists of El Paso County; or

11-22                      (C)  the part of the Houston/Galveston ozone

11-23    nonattainment area that consists of Brazoria, Chambers, Fort Bend,

11-24    Galveston, Harris, Liberty, Montgomery, and Waller counties.

11-25          (b)  The registered owner of a motor vehicle commits an

 12-1    offense if the vehicle, in an area described by Subsection (a),

 12-2    emits:

 12-3                (1)  hydrocarbons, carbon monoxide, or nitrogen oxide

 12-4    in an amount that is excessive under United States Environmental

 12-5    Protection Agency standards or standards provided by department

 12-6    rule;

 12-7                (2)  another vehicle-related pollutant that is listed

 12-8    by a department rule adopted to comply with Part A, National

 12-9    Emission Standards Act (42 U.S.C. Sections 7602-7619), or rules of

12-10    the United States Environmental Protection Agency in an amount

12-11    identified as excessive under that rule; or

12-12                (3)  visible smoke that remains suspended in the air 10

12-13    or more seconds before fully dissipating.

12-14          (c)  The department shall provide a notice of violation to

12-15    the registered owner of a vehicle that is detected  violating

12-16    Subsection (b).  The notice of violation must be made by personal

12-17    delivery to the registered owner or by mailing the notice to the

12-18    registered owner at the last known address of the owner.  The

12-19    department shall include in the notice the date and location of the

12-20    violation detected and instructions for the registered owner

12-21    explaining how the owner must proceed to obtain and pass a

12-22    verification emissions inspection and to make any repair to the

12-23    vehicle necessary to pass the inspection and explaining any

12-24    extension or assistance that may be available to the owner for

12-25    making any necessary repair.  Notice by mail is presumed delivered

 13-1    on the 10th day after the date the notice is deposited in the mail.

 13-2          (d)  The department shall provide notice under Subsection (c)

 13-3    to the registered owner of a vehicle in violation of Subsection

 13-4    (b)(3) as soon as is practicable after the department receives

 13-5    notice that a peace officer in this state has issued the driver of

 13-6    the vehicle an informative citation for the violation.  The

 13-7    department shall adopt rules governing the procedures for a peace

 13-8    officer or police department to provide notice of informative

 13-9    citations issued for violations of Subsection (b)(3).  The rules

13-10    must include a requirement that, for each citation issued, the

13-11    peace officer or police department inform the department of the

13-12    date and location of the violation.

13-13          (e)  A peace officer who has probable cause to believe an

13-14    offense under Subsection (b)(3) has been committed may issue the

13-15    driver of the vehicle an informative citation that indicates that

13-16    an offense under Subsection (b)(3) may have been committed and that

13-17    explains that the registered owner of the vehicle may receive in

13-18    the mail a notice under Subsection (c).

13-19          (f)  A registered owner of a vehicle commits an offense if:

13-20                (1)  notice is delivered to the owner under Subsection

13-21    (c); and

13-22                (2)  the owner fails to comply with any provision of

13-23    the notice before the 31st day after the date the notice is

13-24    delivered.

13-25          (g)  An offense under this section is a misdemeanor

 14-1    punishable by a fine of not less than $1 and not more than $350.

 14-2    If a person has previously been convicted of an offense under this

 14-3    section, an offense under this section is a misdemeanor punishable

 14-4    by a fine of not less than $200 and not more than $1,000.

 14-5          (h)  It is an affirmative defense to an offense under this

 14-6    section that the registered owner of the vehicle, before the 31st

 14-7    day after the date the owner receives a notice of violation:

 14-8                (1)  after a verification emissions inspection

 14-9    indicated that the vehicle did not comply with applicable emissions

14-10    standards, repaired the vehicle as necessary and passed another

14-11    verification emissions inspection; and

14-12                (2)  has complied with rules of the department

14-13    concerning a violation under this section.

14-14          (i)  The department may contract with a private person to

14-15    implement this section.  The person must comply with terms,

14-16    policies, rules, and procedures the department adopts to administer

14-17    this section.

14-18          (j)  The Texas Department of Transportation may deny

14-19    reregistration of a vehicle if the registered owner of the vehicle

14-20    has received notification under Subsection (c) and the vehicle has

14-21    not passed a verification emissions inspection.

14-22          SECTION 11.  Section 548.405, Transportation Code, is amended

14-23    to read as follows:

14-24          Sec. 548.405.  [CAUSE FOR] DENIAL, REVOCATION, OR SUSPENSION

14-25    OF CERTIFICATE.  (a)  The department may deny a person's

 15-1    application for a certificate, revoke or suspend the certificate of

 15-2    a person, [an] inspection station, or inspector, place on probation

 15-3    a person who holds a suspended certificate, or reprimand a person

 15-4    who holds a certificate if:

 15-5                (1)  the station or inspector conducts an inspection or

 15-6    issues a certificate:

 15-7                      (A)  in violation of this chapter [Section

 15-8    548.004(c) or Section 548.104]; or

 15-9                      (B)  without complying with the requirements of

15-10    this chapter; [subchapter or of Subchapter H; or]

15-11                (2)  the person, [at the] station, or [the] inspector[:]

15-12                      [(A)]  commits an offense under this chapter;

15-13                (3)  the applicant or certificate holder does not meet

15-14    the standards for certification under this chapter or a rule

15-15    adopted under this chapter;

15-16                (4)  the station or inspector does not maintain the

15-17    qualifications for certification or does not comply with a

15-18    certification requirement under Subchapter G;

15-19                (5)  the certificate holder or the certificate holder's

15-20    agent, employee, or representative commits an act or omission that

15-21    would cause denial, revocation, or suspension of a certificate to

15-22    an individual applicant or certificate holder;

15-23                (6)  the station or inspector does not pay a fee

15-24    required by Subchapter H; or

15-25                (7)  the inspector or owner of an inspection station is

 16-1    convicted of a:

 16-2                      (A)  felony or Class A or Class B misdemeanor;

 16-3                      (B)  similar crime under the jurisdiction of

 16-4    another state or the federal government that is punishable to the

 16-5    same extent as a felony or a Class A or Class B misdemeanor in this

 16-6    state; or

 16-7                      (C)  crime under the jurisdiction of another

 16-8    state or the federal government that would be a felony or a Class A

 16-9    or Class B misdemeanor if the crime were committed in this state

16-10    [Section 548.603; or]

16-11                      [(B)  falsely and fraudulently represents to a

16-12    vehicle owner or operator that equipment required to be inspected

16-13    must be repaired, adjusted, or replaced before the vehicle will

16-14    pass inspection].

16-15          (b)  For purposes of Subsection (a)(7), a person is convicted

16-16    of an offense if a court enters against the person an adjudication

16-17    of the person's guilt, including an order of probation or deferred

16-18    adjudication.

16-19          (c)  If the department suspends a certificate because of a

16-20    violation of Subchapter F, the suspension must be for a period of

16-21    not less than six months.

16-22          (d)  Until an inspector or inspection station whose

16-23    certificate is suspended or revoked receives a new certificate, has

16-24    the certificate reinstated, or has the suspension expire, the

16-25    inspector or station may not be directly or indirectly involved in

 17-1    an inspection operation [The director may deny an application for

 17-2    certification, revoke or suspend the certificate of an inspection

 17-3    station or inspector, place on probation the holder of a suspended

 17-4    certificate, or reprimand the certificate holder for any of the

 17-5    following reasons:]

 17-6                [(1)  proof of unfitness of an applicant or certificate

 17-7    holder under standards set out in this chapter or commission rules;]

 17-8                [(2)  material misrepresentation in an application or

 17-9    other information filed under this chapter or commission rule;]

17-10                [(3)  failure to maintain the qualifications for

17-11    certification;]

17-12                [(4)  issuance of an inspection certificate without

17-13    being certified;]

17-14                [(5)  issuance of an inspection certificate without

17-15    having made an inspection of the vehicle or without an adjustment,

17-16    correction, or repair having been made after an inspection

17-17    disclosed the necessity for the adjustment, correction, or repair;]

17-18                [(6)  knowing or wilful issuance of an inspection

17-19    certificate for a vehicle without each required item of inspection

17-20    or with an item that was not in good condition and in compliance

17-21    with state law and commission rules;]

17-22                [(7)  refusal to allow the owner of a vehicle to have a

17-23    required adjustment or correction made by a qualified person the

17-24    owner chooses;]

17-25                [(8)  the charging of more than the authorized

 18-1    inspection fee;]

 18-2                [(9)  an act or omission by the certificate holder or

 18-3    the holder's agent, employee, or representative that would cause

 18-4    denial, revocation, or suspension of a certificate to the

 18-5    individual applicant or certificate holder; or]

 18-6                [(10)  wilful failure to comply with this chapter or a

 18-7    rule adopted under this chapter].

 18-8          SECTION 12.  Section 548.407, Transportation Code, is amended

 18-9    to read as follows:

18-10          Sec. 548.407.  HEARING ON [BEFORE] DENIAL, REVOCATION, OR

18-11    SUSPENSION OF CERTIFICATE.  (a)  Before [Not earlier than the 31st

18-12    day before the date] an application for certification as an

18-13    inspection station or inspector is denied [or a certificate is

18-14    revoked or suspended], the director or a person the director

18-15    designates shall give [notify] the person written notification[, in

18-16    writing, in person, or by certified mail to the last address given

18-17    to the department by the person,] of:

18-18                (1)  the proposed [impending] denial[, revocation, or

18-19    suspension];

18-20                (2)  each reason for the proposed denial [action]; and

18-21                (3)  the person's right to an administrative hearing to

18-22    determine whether the evidence warrants the denial [action].

18-23          (b)  Before a certificate of appointment as an inspector or

18-24    inspection station is revoked or suspended, the director or a

18-25    person the director designates shall give written notification to

 19-1    the inspector or inspection station of the revocation or the period

 19-2    of suspension.  The notice shall include:

 19-3                (1)  the effective date of the revocation or the period

 19-4    of the suspension, as applicable;

 19-5                (2)  each reason for the revocation or suspension; and

 19-6                (3)  a statement explaining the person's right to an

 19-7    administrative hearing to determine whether the evidence warrants

 19-8    the revocation or suspension.

 19-9          (c)  Notice under Subsection (a) or (b) must be made by

19-10    personal delivery or by mail to the last address given to the

19-11    department by the person.

19-12          (d)  The department may provide that a revocation or

19-13    suspension takes effect on receipt of notice under Subsection (b)

19-14    if the department finds that the action is necessary to prevent or

19-15    remedy a threat to public health, safety, or welfare.  Violations

19-16    that present a threat to public health, safety, or welfare include:

19-17                (1)  issuing an inspection certificate with knowledge

19-18    that the issuance is in violation of this chapter or rules adopted

19-19    under this chapter;

19-20                (2)  falsely or fraudulently representing to the owner

19-21    or operator of a vehicle that equipment inspected or required to be

19-22    inspected must be repaired, adjusted, or replaced for the vehicle

19-23    to pass an inspection;

19-24                (3)  issuing an inspection certificate:

19-25                      (A)  without authorization to issue the

 20-1    certificate; or

 20-2                      (B)  without inspecting the vehicle;

 20-3                (4)  issuing an inspection certificate for a vehicle

 20-4    with knowledge that the vehicle has not been repaired, adjusted, or

 20-5    corrected after an inspection has shown a repair, adjustment, or

 20-6    correction to be necessary;

 20-7                (5)  knowingly issuing an inspection certificate:

 20-8                      (A)  for a vehicle without conducting an

 20-9    inspection of each item required to be inspected; or

20-10                      (B)  for a vehicle that is missing an item

20-11    required to be inspected or that has an item required to be

20-12    inspected that is not in compliance with state law or department

20-13    rules;

20-14                (6)  refusing to allow a vehicle's owner to have a

20-15    qualified person of the owner's choice make a required repair,

20-16    adjustment, or correction;

20-17                (7)  charging for an inspection an amount greater than

20-18    the authorized fee;

20-19                (8)  a violation of Subchapter F;

20-20                (9)  a violation of Section 548.603; or

20-21                (10)  a conviction of a felony or a Class A or B

20-22    misdemeanor that directly relates to or affects the duties or

20-23    responsibilities of a vehicle inspection station or inspector or a

20-24    conviction of a similar crime under the jurisdiction of another

20-25    state or the federal government.

 21-1          (e)  For purposes of Subsection (d)(10), a person is

 21-2    convicted of an offense if a court enters against the person an

 21-3    adjudication of the person's guilt, including an order of probation

 21-4    or deferred adjudication.

 21-5          (f)  To obtain an administrative hearing on a denial,

 21-6    suspension, or revocation under this section, a person must submit

 21-7    a written request for a hearing to the director not later than the

 21-8    20th day after the date notice is delivered personally or is mailed

 21-9    [given in person or is deposited in the United States mail as

21-10    provided by Subsection (a)].

21-11          (g) [(c)]  If the director receives a timely request under

21-12    Subsection (f), the director shall provide the person with an

21-13    opportunity for a hearing as soon as practicable.  A hearing on a

21-14    revocation or suspension under Subsection (d) that takes effect on

21-15    receipt of the notice must be held not later than 14 days after the

21-16    department receives the request for hearing.  The revocation or

21-17    suspension continues in effect until the hearing is completed if

21-18    the hearing is continued beyond the 14-day period:

21-19                (1)  at the request of the inspector or inspection

21-20    station; or

21-21                (2)  on a finding of good cause by a judge,

21-22    administrative law judge, or hearing officer.

21-23          (h)  If the director does not receive a timely request under

21-24    Subsection (f), the director may deny the application, revoke or

21-25    suspend a certificate, or sustain the revocation or suspension of a

 22-1    certificate [act] without a hearing.

 22-2          (i)  Except as provided by Subsection (g), the [(d)  The]

 22-3    hearing must be held not earlier than the 11th day after the date

 22-4    written notice of the hearing and[, including] a copy of the

 22-5    charges[,] is given to the person by personal service or by

 22-6    certified mail to the last address given to the department by the

 22-7    person.

 22-8          (j) [(e)]  The director or a person designated by the

 22-9    director shall conduct the hearing and may administer oaths and

22-10    issue subpoenas for the attendance of witnesses and the production

22-11    of relevant books, papers, or documents.  If the hearing is

22-12    conducted by a person designated by the director, the director may

22-13    take action under this section on a recommendation of the

22-14    designated person.

22-15          (k) [(f)]  On the basis of the evidence submitted at the

22-16    hearing, the director may deny the application or revoke or suspend

22-17    the certificate.

22-18          (l)  If in conducting a hearing under this section an

22-19    administrative law judge of the State Office of Administrative

22-20    Hearings makes a proposal for a decision to deny an application or

22-21    to suspend or revoke a certificate, the administrative law judge

22-22    shall include in the proposal a finding of the costs, fees,

22-23    expenses, and reasonable and necessary attorney's fees the state

22-24    incurred in bringing the proceeding.  The director may adopt the

22-25    finding and make the finding a part of the final order entered in

 23-1    the proceeding.  Proceeds collected from a finding made under this

 23-2    subsection shall be deposited in a special account in the general

 23-3    revenue fund that may be appropriated only to the attorney general.

 23-4          SECTION 13.  Section 548.505, Transportation Code, is amended

 23-5    to read as follows:

 23-6          Sec. 548.505.  EMISSIONS-RELATED INSPECTION FEE.  (a)  The

 23-7    department by rule may impose [commission may by rule establish] an

 23-8    inspection fee for a vehicle inspected under Section 548.301(a) in

 23-9    addition to the fee provided by Section 548.501, 548.502, [or]

23-10    548.503, or 548.504.  A fee imposed under this subsection must be

23-11    based on the costs of:

23-12                (1)  producing certificates;

23-13                (2)  providing inspections; and

23-14                (3)  administering the program [for a vehicle inspected

23-15    under Section 548.301(a)].

23-16          (b)  The department may provide a maximum fee for an

23-17    inspection under this subchapter.  The department may not set a

23-18    minimum fee for an inspection under this subchapter [additional fee

23-19    may not exceed:]

23-20                [(1)  $5 if only a parameter program is established; or]

23-21                [(2)  $10 if a program other than the parameter program

23-22    is established under requirements of the United States.]

23-23          [(c)  If an inspection under Section 548.501 or Section

23-24    548.503 is not performed when an inspection is performed under

23-25    Section 548.301(a), the only fee due is the fee authorized by this

 24-1    section.]

 24-2          [(d)  The conservation commission shall:]

 24-3                [(1)  pay to the department an amount equal to the cost

 24-4    of producing certificates provided to centralized reinspection

 24-5    stations under Section 548.304;]

 24-6                [(2)  establish a reinspection fee; and]

 24-7                [(3)  implement procedures governing the tracking of

 24-8    certificates and the refunding of the cost of unissued certificates

 24-9    provided to reinspection stations].

24-10          SECTION 14.  Section 548.601, Transportation Code, is amended

24-11    to read as follows:

24-12          Sec. 548.601.  OFFENSE GENERALLY.  (a)  A person, including

24-13    an inspector or an inspection station, [who operates a motor

24-14    vehicle in violation of this chapter or a rule adopted under this

24-15    chapter] commits an offense if the person:

24-16                (1)  issues an inspection certificate with knowledge

24-17    that the issuance is in violation of this chapter or rules adopted

24-18    under this chapter;

24-19                (2)  falsely or fraudulently represents to the owner or

24-20    operator of a vehicle that equipment inspected or required to be

24-21    inspected must be repaired, adjusted, or replaced for the vehicle

24-22    to pass an inspection;

24-23                (3)  misrepresents:

24-24                      (A)  material information in an application in

24-25    violation of Section 548.402 or 548.403; or

 25-1                      (B)  information filed with the department under

 25-2    this chapter or as required by department rule;

 25-3                (4)  issues an inspection certificate:

 25-4                      (A)  without authorization to issue the

 25-5    certificate; or

 25-6                      (B)  without inspecting the vehicle;

 25-7                (5)  issues an inspection certificate for a vehicle

 25-8    with knowledge that the vehicle has not been repaired, adjusted, or

 25-9    corrected after an inspection has shown a repair, adjustment, or

25-10    correction to be necessary;

25-11                (6)  knowingly issues an inspection certificate:

25-12                      (A)  for a vehicle without conducting an

25-13    inspection of each item required to be inspected; or

25-14                      (B)  for a vehicle that is missing an item

25-15    required to be inspected or that has an item required to be

25-16    inspected that is not in compliance with state law or department

25-17    rules;

25-18                (7)  refuses to allow a vehicle's owner to have a

25-19    qualified person of the owner's choice make a required repair,

25-20    adjustment, or correction; or

25-21                (8)  charges for an inspection an amount greater than

25-22    the authorized fee.

25-23          (b)  Unless otherwise specified in this chapter, an offense

25-24    under this section is a Class C [that is a] misdemeanor.

25-25          (c)  A designated representative of the department may issue

 26-1    a notice of an offense or a notice to appear to a person, including

 26-2    an inspector or inspection station, who violates this chapter or a

 26-3    rule adopted under this chapter.

 26-4          [(b)  This section does not apply to operation of a vehicle

 26-5    that is:]

 26-6                [(1)  licensed in another state; and]

 26-7                [(2)  being temporarily and legally operated under a

 26-8    reciprocity agreement.]

 26-9          SECTION 15.  Subsection (a), Section 548.602, Transportation

26-10    Code, is amended to read as follows:

26-11          (a)  After the fifth day after the date of expiration of the

26-12    period designated for inspection, a person may not operate:

26-13                (1)  a motor vehicle registered in this state unless a

26-14    current [an] inspection certificate is displayed on the vehicle; or

26-15                (2)  a commercial motor vehicle registered in this

26-16    state unless it is equipped as required by federal motor carrier

26-17    safety regulations and displays an inspection certificate issued

26-18    under the program established under Section 548.201.

26-19          SECTION 16.  Section 548.603, Transportation Code, is amended

26-20    to read as follows:

26-21          Sec. 548.603.  [DISPLAY OF] FICTITIOUS OR COUNTERFEIT

26-22    INSPECTION CERTIFICATE OR INSURANCE DOCUMENT.  (a)  A person

26-23    commits an offense if the person:

26-24                (1)  displays or causes or permits to be displayed an

26-25    inspection certificate or insurance document knowing that the

 27-1    certificate or document is counterfeit, tampered with, altered, [it

 27-2    to be] fictitious, issued for another vehicle, issued for a vehicle

 27-3    failing to meet all emissions inspection requirements, or issued in

 27-4    violation of:

 27-5                      (A)  this chapter, rules adopted under this

 27-6    chapter, or other law of this state; or

 27-7                      (B)  a law of another state, the United States,

 27-8    the United Mexican States, a state of the United Mexican States,

 27-9    Canada, or a province of Canada; [without the required inspection

27-10    having been made; or]

27-11                (2)  transfers an inspection certificate from a

27-12    windshield or location to another windshield or location;

27-13                (3)  with intent to circumvent the emissions inspection

27-14    requirements seeks an inspection of a vehicle at a station not

27-15    certified to perform an emissions inspection if the person knows

27-16    that the vehicle is required to be inspected under Section 548.301;

27-17                (4)  knowingly does not comply with an emissions

27-18    inspection requirement for a vehicle; or

27-19                (5)  displays on a vehicle an inspection certificate

27-20    that was obtained knowing that the vehicle does not meet all

27-21    emissions inspection requirements for the vehicle.

27-22          (b)  A person commits an offense if the person:

27-23                (1)  makes or possesses, with the intent to sell,

27-24    circulate, or pass, a counterfeit inspection certificate or

27-25    insurance document; or

 28-1                (2)  possesses any part of a stamp, dye, plate,

 28-2    negative, machine, or other device that is used or designated for

 28-3    use in making a counterfeit inspection certificate or insurance

 28-4    document.

 28-5          (c)  The owner of a vehicle commits an offense if the owner

 28-6    knowingly allows the vehicle to be registered or[:]

 28-7                [(1)  is] operated while the vehicle [or parked on a

 28-8    public highway; and]

 28-9                [(2)]  displays an inspection certificate in violation

28-10    of Subsection (a).

28-11          (d)  An [(c)  Except as provided by Subsection (d), an]

28-12    offense under Subsection (a) or (c) is a Class B misdemeanor.  An

28-13    offense under Subsection (b) is a third degree felony unless the

28-14    person acts with the intent to defraud or harm another person, in

28-15    which event the offense is a second degree felony.

28-16          (e)  In this section:

28-17                (1)  "Counterfeit" means an imitation of a document

28-18    that is printed, engraved, copied, photographed, forged, or

28-19    manufactured by a person not authorized to take that action under:

28-20                      (A)  this chapter, rules adopted under this

28-21    chapter, or other law of this state; or

28-22                      (B)  a law of another state, the United States,

28-23    the United Mexican States, a state of the United Mexican States,

28-24    Canada, or a province of Canada.

28-25                (2)  "Inspection certificate" means a document that is

 29-1    printed, manufactured, or made by the department or an authorized

 29-2    agent of the department for issuance after a vehicle passes an

 29-3    inspection performed under this chapter.

 29-4                (3)  "Insurance document" means a standard proof of

 29-5    motor vehicle insurance coverage that is:

 29-6                      (A)  in a form prescribed by the Texas Department

 29-7    of Insurance or by a similarly authorized board, agency, or

 29-8    authority of another state; and

 29-9                      (B)  issued by an insurer or insurer's agent who

29-10    is authorized to write motor vehicle insurance coverage.

29-11                (4)  "Person" includes an inspection station or

29-12    inspector [punishable by a fine of not less than $100 or more than

29-13    $200.]

29-14          [(d)  An offense under Subsection (a)  is a Class B

29-15    misdemeanor if:]

29-16                [(1)  the certificate is a motor vehicle emissions

29-17    inspection certificate; and]

29-18                [(2)  the owner of the vehicle knows the certificate is

29-19    in violation of Subsection (a)].

29-20          (f) [(e)]  A motor vehicle on which [is displayed] a vehicle

29-21    emissions inspection certificate is displayed in violation of

29-22    Subsection (a) and that is operated or parked on a public roadway

29-23    may be impounded by a peace officer or other authorized employee of

29-24    this state or a political subdivision of this state in which the

29-25    vehicle is operated or parked.

 30-1          SECTION 17.  Subchapter C, Chapter 552, Government Code, is

 30-2    amended by adding Section 552.127 to read as follows:

 30-3          Sec. 552.127.  MOTOR VEHICLE INSPECTION INFORMATION.  A

 30-4    record created during a motor vehicle emissions inspection under

 30-5    Subchapter F, Chapter 548, Transportation Code, that relates to an

 30-6    individual vehicle or owner of an individual vehicle is excepted

 30-7    from the requirements of Section 552.021.

 30-8          SECTION 18.  (a)  In addition to the substantive changes made

 30-9    by this Act, this Act conforms:

30-10                (1)  Section 548.001, Transportation Code, to Section

30-11    25, Chapter 705, Acts of the 74th Legislature, 1995;

30-12                (2)  Section 548.301, Transportation Code, to Section

30-13    8, Chapter 34, Acts of the 74th Legislature, 1995;

30-14                (3)  Section 548.304, Transportation Code, to Sections

30-15    6 and 8, Chapter 34, Acts of the 74th Legislature, 1995; and

30-16                (4)  Section 548.603, Transportation Code, to Section

30-17    7, Chapter 34, Acts of the 74th Legislature, 1995.

30-18          (b)  To the extent of any conflict, this Act prevails over

30-19    another Act of the 75th Legislature, Regular Session, 1997, that

30-20    relates to nonsubstantive additions to and corrections in enacted

30-21    codes, except for an amendment to Subdivision (5), Section 548.001,

30-22    Transportation Code, made by such an Act.

30-23          SECTION 19.  The following are repealed:

30-24                (1)  Subsection (a-1), Section 382.037, and Section

30-25    382.0371, Health and Safety Code;

 31-1                (2)  Subsection (c), Section 548.256, and Section

 31-2    548.305, Transportation Code;

 31-3                (3)  Section 25, Chapter 705, Acts of the 74th

 31-4    Legislature, 1995; and

 31-5                (4)  Sections 6, 7, and 8, Chapter 34, Acts of the 74th

 31-6    Legislature, 1995.

 31-7          SECTION 20.  The changes in law made by this Act apply only

 31-8    to an offense committed or a violation of a statute or agency rule

 31-9    that occurs on or after the effective date of this Act.  For

31-10    purposes of this section, an offense occurs, or a violation of a

31-11    statute or agency rule occurs, before the effective date of this

31-12    Act if any element of the offense or violation occurs before that

31-13    date, and the former law is continued in effect for that purpose.

31-14          SECTION 21.  The importance of this legislation and the

31-15    crowded condition of the calendars in both houses create an

31-16    emergency and an imperative public necessity that the

31-17    constitutional rule requiring bills to be read on three several

31-18    days in each house be suspended, and this rule is hereby suspended,

31-19    and that this Act take effect and be in force from and after its

31-20    passage, and it is so enacted.

                                                               S.B. No. 1856

         ________________________________   ________________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1856 passed the Senate on

         April 28, 1997, by the following vote:  Yeas 31, Nays 0;

         May 28, 1997, Senate refused to concur in House amendments and

         requested appointment of Conference Committee; May 29, 1997, House

         granted request of the Senate; June 1, 1997, Senate adopted

         Conference Committee Report by the following vote:  Yeas 23,

         Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1856 passed the House, with

         amendments, on May 24, 1997, by the following vote:  Yeas 123,

         Nays 6, three present not voting; May 29, 1997, House granted

         request of the Senate for appointment of Conference Committee;

         June 1, 1997, House adopted Conference Committee Report by the

         following vote:  Yeas 132, Nays 11, two present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         ________________________________

                      Date

         ________________________________

                    Governor