1-1     By:  Wentworth                                        S.B. No. 1856

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Natural Resources;

 1-4     April 18, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 9, Nays 0; April 18, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1856               By:  Wentworth

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the inspection and maintenance of certain motor

1-11     vehicles for air pollution control; providing criminal penalties.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Subsection (d), Section 382.037, Health and

1-14     Safety Code, is amended to read as follows:

1-15           (d)  On adoption of a resolution by the commission and after

1-16     proper notice, the Department of Public Safety of the State of

1-17     Texas shall implement a system that requires, as a condition of

1-18     obtaining a safety inspection certificate issued under Chapter 548,

1-19     Transportation Code [Section 140 or 141, Uniform Act Regulating

1-20     Traffic on Highways (Article 6701d, Vernon's Texas Civil

1-21     Statutes)], in a county that is included in a vehicle emissions

1-22     inspection and maintenance program under Subchapter F of that

1-23     chapter [Section 142, Uniform Act Regulating Traffic on Highways

1-24     (Article 6701d, Vernon's Texas Civil Statutes)], that the vehicle,

1-25     unless the vehicle is not covered by the system, be annually or

1-26     biennially inspected under the vehicle emissions inspection and

1-27     maintenance program as required by the state's [Texas] air quality

1-28     state implementation plan [or Section 382.0371].  The Department of

1-29     Public Safety shall implement such a system when it is required by

1-30     any provision of federal or state law, including any provision of

1-31     the state's [Texas] air quality state implementation plan.  [The

1-32     Department of Public Safety may not require or accept verification

1-33     of compliance other than a vehicle inspection certificate.]

1-34           SECTION 2.  Subchapter A, Chapter 502, Transportation Code,

1-35     is amended by adding Section 502.009 to read as follows:

1-36           Sec. 502.009.  MOTOR VEHICLE EMISSIONS INSPECTION AND

1-37     MAINTENANCE REQUIREMENTS.  (a)  The Department of Public Safety

1-38     shall ensure compliance with the motor vehicle emissions inspection

1-39     and maintenance program through a vehicle inspection sticker-based

1-40     enforcement system except as provided by this section.  Subsections

1-41     (b)-(e) apply only if the United States Environmental Protection

1-42     Agency determines that the state has not demonstrated, as required

1-43     by 40 C.F.R. Section 51.361, that sticker-based enforcement of the

1-44     program is more effective than registration-based enforcement and

1-45     gives the Texas Natural Resource Conservation Commission or the

1-46     governor written notification that the reregistration-based

1-47     enforcement of the program, as described by those subsections, will

1-48     be required.  If Subsections (b)-(e) are made applicable as

1-49     provided by this subsection, the department shall terminate

1-50     reregistration-based enforcement of the program under those

1-51     subsections on the date the United States Environmental Protection

1-52     Agency gives the Texas Natural Resource Conservation Commission or

1-53     a person the commission designates written notification that

1-54     reregistration-based enforcement is not required for the state

1-55     implementation plan.

1-56           (b)  The department may not register a motor vehicle if the

1-57     department receives from the Texas Natural Resource Conservation

1-58     Commission or the Department of Public Safety notification that the

1-59     registered owner of the vehicle has not complied with Subchapter F,

1-60     Chapter 548.

1-61           (c)  The county tax assessor-collector may not register a

1-62     vehicle denied registration under Subsection (b) unless the tax

1-63     assessor-collector has verification that the registered vehicle

1-64     owner is in compliance with Subchapter F, Chapter 548.

 2-1           (d)  The department, the Texas Natural Resource Conservation

 2-2     Commission, and the Department of Public Safety shall enter an

 2-3     agreement regarding the responsibilities for costs associated with

 2-4     implementing this section.

 2-5           (e)  A county tax assessor-collector is not liable to any

 2-6     person for refusing to register a motor vehicle because of the

 2-7     person's failure to provide verification of the person's compliance

 2-8     with Subchapter F, Chapter 548.

 2-9           SECTION 3.  Section 548.001, Transportation Code, is amended

2-10     to read as follows:

2-11           Sec. 548.001.  DEFINITIONS.  In this chapter:

2-12                 (1)  "Commercial motor vehicle" means a self-propelled

2-13     or towed vehicle, other than a farm vehicle with a gross weight,

2-14     registered weight, or gross weight rating of less than 48,000

2-15     pounds, that is used on a public highway to transport passengers or

2-16     cargo if:

2-17                       (A)  the vehicle or combination of vehicles has a

2-18     gross weight, registered weight, or gross weight rating of more

2-19     than 26,000 pounds;

2-20                       (B)  the vehicle is designed to transport more

2-21     than 15 passengers, including the driver; or

2-22                       (C)  the vehicle is used to transport hazardous

2-23     materials in a quantity requiring placarding by a regulation issued

2-24     under the Hazardous Materials Transportation Act (49 U.S.C. Section

2-25     1801 et seq.).

2-26                 (2)  "Commission" means the Public Safety Commission.

2-27                 (3)  "Conservation commission" means the Texas Natural

2-28     Resource Conservation Commission.

2-29                 (4)  "Department" means the Department of Public

2-30     Safety.

2-31                 (5)  "Farm vehicle" has the meaning assigned by the

2-32     federal motor carrier safety regulations.

2-33                 (6) [(5)]  "Federal motor carrier safety regulation"

2-34     has the meaning assigned by Section 549.001.

2-35                 (7) [(6)]  "Inspection station" means a facility

2-36     certified to conduct inspections of vehicles under this chapter.

2-37                 (8) [(7)]  "Inspector" means an individual certified to

2-38     conduct inspections of vehicles under this chapter.

2-39                 (9)  "Nonattainment area" means an area so designated

2-40     within the meaning of Section 107(d) of the Clean Air Act (42

2-41     U.S.C. Section 7407).

2-42           SECTION 4.  Section 548.251, Transportation Code, is amended

2-43     to read as follows:

2-44           Sec. 548.251.  DEPARTMENT TO PROVIDE INSPECTION CERTIFICATES

2-45     AND VERIFICATION FORMS.  The department shall provide serially

2-46     numbered inspection certificates and verification forms to

2-47     inspection stations.  The department may issue a unique inspection

2-48     certificate for:

2-49                 (1)  a commercial motor vehicle inspected under Section

2-50     548.201; or

2-51                 (2)  a vehicle inspected under Subchapter F [Section

2-52     548.301(a)].

2-53           SECTION 5.  Section 548.301, Transportation Code, is amended

2-54     to read as follows:

2-55           Sec. 548.301.  COMMISSION TO ESTABLISH PROGRAM.  (a)  The

2-56     commission shall establish a motor vehicle emissions inspection and

2-57     maintenance program for vehicles as [registered in a county for

2-58     which the conservation commission has adopted a resolution

2-59     requesting the department to establish such a program if:]

2-60                 [(1)  the county does not meet the national ambient air

2-61     quality standards for ozone, carbon monoxide, or another

2-62     vehicle-related pollutant; or]

2-63                 [(2)  the program is] required [in the county] by any

2-64     law of the United States or[, including] the state's [Texas] air

2-65     quality state implementation plan.

2-66           (b)  The commission by rule may establish a motor vehicle

2-67     emissions inspection and maintenance program for vehicles specified

2-68     by the conservation commission [registered] in a county for which

2-69     the conservation commission has adopted a resolution requesting the

 3-1     commission [department] to establish such a program and for which

 3-2     the county and the municipality with the largest population in the

 3-3     county by resolution have formally requested a proactive air

 3-4     quality plan consisting of such a program.

 3-5           (c)  A program established under Subsection (b) may not

 3-6     include reregistration-based [registration-based] enforcement

 3-7     unless the county by resolution requests reregistration-based

 3-8     enforcement [Texas Department of Transportation includes the

 3-9     program in its registration enforcement system].

3-10           (d)  A vehicle emissions inspection under this section may be

3-11     performed by the same facility that performs a safety inspection if

3-12     the facility is authorized and certified by the department to

3-13     perform the vehicle emissions inspection and certified by the

3-14     department to perform the safety inspection.

3-15           SECTION 6.  Section 548.302, Transportation Code, is amended

3-16     to read as follows:

3-17           Sec. 548.302.  COMMISSION TO ADOPT STANDARDS.  The commission

3-18     shall:

3-19                 (1)  adopt standards for emissions-related inspection

3-20     criteria consistent with requirements of the United States and the

3-21     conservation commission applicable to a county in which a program

3-22     is established under this subchapter; and

3-23                 (2)  develop and impose requirements necessary to

3-24     ensure that an inspection certificate is not issued to a vehicle

3-25     subject to a program established under this subchapter unless the

3-26     vehicle has passed a motor vehicle emissions inspection at a

3-27     facility authorized and certified by the department [Section

3-28     548.301].

3-29           SECTION 7.  Section 548.303, Transportation Code, is amended

3-30     to read as follows:

3-31           Sec. 548.303.  PROGRAM ADMINISTRATION.  [(a)]  The commission

3-32     shall administer the motor vehicle emissions inspection and

3-33     maintenance program under this subchapter [until the date a vehicle

3-34     emissions inspection program administered by the conservation

3-35     commission is implemented under the Clean Air Act].

3-36           [(b)  The executive director of the conservation commission

3-37     shall notify the commission of the date the conservation

3-38     commission's program will become effective.]

3-39           SECTION 8.  Section 548.304, Transportation Code, is amended

3-40     to read as follows:

3-41           Sec. 548.304.  STATIONS LICENSED TO CONDUCT EMISSIONS

3-42     INSPECTIONS [REINSPECTIONS].  (a)  The department [conservation

3-43     commission] may authorize and certify [license] inspection stations

3-44     as necessary to implement the emissions-related inspection

3-45     [reinspection] requirements of the motor vehicle emissions

3-46     inspection and maintenance program established under this

3-47     subchapter if the station meets the department's certification

3-48     requirements [Section 548.301].

3-49           (b)  The [At the request of the conservation commission, the]

3-50     department shall provide inspection certificates for distribution

3-51     and issuance at inspection [centralized reinspection] stations

3-52     certified [licensed] by the department [conservation commission].

3-53           [(c)  Notwithstanding Section 548.053(a), if an

3-54     emissions-related inspection under Section 548.301 discloses the

3-55     necessity for adjustment, correction, or repair, the conservation

3-56     commission may by rule require that the vehicle be reinspected at a

3-57     specified inspection station authorized and licensed by the

3-58     conservation commission to ensure that the emissions-related

3-59     adjustment, correction, or repair is made.]

3-60           SECTION 9.  Subchapter F, Chapter 548, Transportation Code,

3-61     is amended by adding Section 548.306 to read as follows:

3-62           Sec. 548.306.  EXCESSIVE MOTOR VEHICLE EMISSIONS.  (a)  This

3-63     section applies to a motor vehicle registered in:

3-64                 (1)  a county or a portion of a county designated by

3-65     department rule in accordance with standards provided by the United

3-66     States Environmental Protection Agency; or

3-67                 (2)  one of the following areas:

3-68                       (A)  the part of the Dallas/Fort Worth ozone

3-69     nonattainment area that consists of Collin, Dallas, Denton, and

 4-1     Tarrant counties;

 4-2                       (B)  the part of the El Paso ozone nonattainment

 4-3     area that consists of El Paso County; or

 4-4                       (C)  the part of the Houston/Galveston ozone

 4-5     nonattainment area that consists of Brazoria, Chambers, Fort Bend,

 4-6     Galveston, Harris, Liberty, Montgomery, and Waller counties.

 4-7           (b)  The registered owner of a motor vehicle commits an

 4-8     offense if the vehicle, in an area described by Subsection (a),

 4-9     emits:

4-10                 (1)  hydrocarbons, carbon monoxide, or nitrogen oxide

4-11     in an amount that is excessive under United States Environmental

4-12     Protection Agency standards or standards provided by department

4-13     rule; or

4-14                 (2)  another vehicle-related pollutant that is listed

4-15     by a department rule adopted to comply with Part A, National

4-16     Emission Standards Act (42 U.S.C. Sections 7602-7619), or rules of

4-17     the United States Environmental Protection Agency in an amount

4-18     identified as excessive under that rule.

4-19           (c)  The department shall provide a notice of violation to

4-20     the registered owner of a vehicle that is detected  violating

4-21     Subsection (b).  The notice of violation must be made by personal

4-22     delivery to the registered owner or by mailing the notice to the

4-23     registered owner at the last known address of the owner.  The

4-24     department shall include in the notice the date and location of the

4-25     violation detected and instructions for the registered owner

4-26     explaining how the owner must proceed to obtain and pass a

4-27     verification emissions inspection and to make any repair to the

4-28     vehicle necessary to pass the inspection.  Notice by mail is

4-29     presumed delivered on the 10th day after the date the notice is

4-30     deposited in the mail.

4-31           (d)  A registered owner of a vehicle commits an offense if:

4-32                 (1)  notice is delivered to the owner under Subsection

4-33     (c); and

4-34                 (2)  the owner fails to comply with any provision of

4-35     the notice before the 31st day after the date the notice is

4-36     delivered.

4-37           (e)  An offense under this section is a misdemeanor

4-38     punishable by a fine of not less than $1 and not more than $350.

4-39     If a person has previously been convicted of an offense under this

4-40     section, an offense under this section is a misdemeanor punishable

4-41     by a fine of not less than $200 and not more than $1,000.

4-42           (f)  It is an affirmative defense to an offense under this

4-43     section that the registered owner of the vehicle, before the 31st

4-44     day after the date the owner receives a notice of violation:

4-45                 (1)  after a verification emissions inspection

4-46     indicated that the vehicle did not comply with applicable emissions

4-47     standards, repaired the vehicle as necessary and passed another

4-48     verification emissions inspection; and

4-49                 (2)  has complied with rules of the department

4-50     concerning a violation under this section.

4-51           (g)  The department may contract with a private person to

4-52     implement this section.  The person must comply with terms,

4-53     policies, rules, and procedures the department adopts to administer

4-54     this section.

4-55           (h)  The Texas Department of Transportation may deny

4-56     reregistration of a vehicle if the registered owner of the vehicle

4-57     has received notification under Subsection (c) and the vehicle has

4-58     not passed a verification emissions inspection.

4-59           SECTION 10.  Section 548.405, Transportation Code, is amended

4-60     to read as follows:

4-61           Sec. 548.405.  [CAUSE FOR] DENIAL, REVOCATION, OR SUSPENSION

4-62     OF CERTIFICATE.  (a)  The department may deny a person's

4-63     application for a certificate, revoke or suspend the certificate of

4-64     a person, [an] inspection station, or inspector, place on probation

4-65     a person who holds a suspended certificate, or reprimand a person

4-66     who holds a certificate if:

4-67                 (1)  the station or inspector conducts an inspection or

4-68     issues a certificate:

4-69                       (A)  in violation of this chapter [Section

 5-1     548.004(c) or Section 548.104]; or

 5-2                       (B)  without complying with the requirements of

 5-3     this chapter; [subchapter or of Subchapter H; or]

 5-4                 (2)  the person, [at the] station, or [the] inspector[:]

 5-5                       [(A)]  commits an offense under this chapter;

 5-6                 (3)  the applicant or certificate holder does not meet

 5-7     the standards for certification under this chapter or a rule

 5-8     adopted under this chapter;

 5-9                 (4)  the station or inspector does not maintain the

5-10     qualifications for certification or does not comply with a

5-11     certification requirement under Subchapter G;

5-12                 (5)  the certificate holder or the certificate holder's

5-13     agent, employee, or representative commits an act or omission that

5-14     would cause denial, revocation, or suspension of a certificate to

5-15     an individual applicant or certificate holder;

5-16                 (6)  the station or inspector does not pay a fee

5-17     required by Subchapter H; or

5-18                 (7)  the inspector or owner of an inspection station is

5-19     convicted of a:

5-20                       (A)  felony or Class A or Class B misdemeanor;

5-21                       (B)  similar crime under the jurisdiction of

5-22     another state or the federal government that is punishable to the

5-23     same extent as a felony or a Class A or Class B misdemeanor in this

5-24     state; or

5-25                       (C)  crime under the jurisdiction of another

5-26     state or the federal government that would be a felony or a Class A

5-27     or Class B misdemeanor if the crime were committed in this state

5-28     [Section 548.603; or]

5-29                       [(B)  falsely and fraudulently represents to a

5-30     vehicle owner or operator that equipment required to be inspected

5-31     must be repaired, adjusted, or replaced before the vehicle will

5-32     pass inspection].

5-33           (b)  For purposes of Subsection (a)(7), a person is convicted

5-34     of an offense if a court enters against the person an adjudication

5-35     of the person's guilt, including an order of probation or deferred

5-36     adjudication.

5-37           (c)  If the department suspends a certificate because of a

5-38     violation of Subchapter F, the suspension must be for a period of

5-39     not less than six months.

5-40           (d)  Until an inspector or inspection station whose

5-41     certificate is suspended or revoked receives a new certificate, has

5-42     the certificate reinstated, or has the suspension expire, the

5-43     inspector or station may not be directly or indirectly involved in

5-44     an inspection operation [The director may deny an application for

5-45     certification, revoke or suspend the certificate of an inspection

5-46     station or inspector, place on probation the holder of a suspended

5-47     certificate, or reprimand the certificate holder for any of the

5-48     following reasons:]

5-49                 [(1)  proof of unfitness of an applicant or certificate

5-50     holder under standards set out in this chapter or commission rules;]

5-51                 [(2)  material misrepresentation in an application or

5-52     other information filed under this chapter or commission rule;]

5-53                 [(3)  failure to maintain the qualifications for

5-54     certification;]

5-55                 [(4)  issuance of an inspection certificate without

5-56     being certified;]

5-57                 [(5)  issuance of an inspection certificate without

5-58     having made an inspection of the vehicle or without an adjustment,

5-59     correction, or repair having been made after an inspection

5-60     disclosed the necessity for the adjustment, correction, or repair;]

5-61                 [(6)  knowing or wilful issuance of an inspection

5-62     certificate for a vehicle without each required item of inspection

5-63     or with an item that was not in good condition and in compliance

5-64     with state law and commission rules;]

5-65                 [(7)  refusal to allow the owner of a vehicle to have a

5-66     required adjustment or correction made by a qualified person the

5-67     owner chooses;]

5-68                 [(8)  the charging of more than the authorized

5-69     inspection fee;]

 6-1                 [(9)  an act or omission by the certificate holder or

 6-2     the holder's agent, employee, or representative that would cause

 6-3     denial, revocation, or suspension of a certificate to the

 6-4     individual applicant or certificate holder; or]

 6-5                 [(10)  wilful failure to comply with this chapter or a

 6-6     rule adopted under this chapter].

 6-7           SECTION 11.  Section 548.407, Transportation Code, is amended

 6-8     to read as follows:

 6-9           Sec. 548.407.  HEARING ON [BEFORE] DENIAL, REVOCATION, OR

6-10     SUSPENSION OF CERTIFICATE.  (a)  Before [Not earlier than the 31st

6-11     day before the date] an application for certification as an

6-12     inspection station or inspector is denied [or a certificate is

6-13     revoked or suspended], the director or a person the director

6-14     designates shall give [notify] the person written notification[, in

6-15     writing, in person, or by certified mail to the last address given

6-16     to the department by the person,] of:

6-17                 (1)  the proposed [impending] denial[, revocation, or

6-18     suspension];

6-19                 (2)  each reason for the proposed denial [action]; and

6-20                 (3)  the person's right to an administrative hearing to

6-21     determine whether the evidence warrants the denial [action].

6-22           (b)  Before a certificate of appointment as an inspector or

6-23     inspection station is revoked or suspended, the director or a

6-24     person the director designates shall give written notification to

6-25     the inspector or inspection station of the revocation or the period

6-26     of suspension.  The notice shall include:

6-27                 (1)  the effective date of the revocation or the period

6-28     of the suspension, as applicable;

6-29                 (2)  each reason for the revocation or suspension; and

6-30                 (3)  a statement explaining the person's right to an

6-31     administrative hearing to determine whether the evidence warrants

6-32     the revocation or suspension.

6-33           (c)  Notice under Subsection (a) or (b) must be made by

6-34     personal delivery or by mail to the last address given to the

6-35     department by the person.

6-36           (d)  The department may provide that a revocation or

6-37     suspension takes effect on receipt of notice under Subsection (b)

6-38     if the department finds that the action is necessary to prevent or

6-39     remedy a threat to public health, safety, or welfare.  Violations

6-40     that present a threat to public health, safety, or welfare include:

6-41                 (1)  issuing an inspection certificate with knowledge

6-42     that the issuance is in violation of this chapter or rules adopted

6-43     under this chapter;

6-44                 (2)  falsely or fraudulently representing to the owner

6-45     or operator of a vehicle that equipment inspected or required to be

6-46     inspected must be repaired, adjusted, or replaced for the vehicle

6-47     to pass an inspection;

6-48                 (3)  issuing an inspection certificate:

6-49                       (A)  without authorization to issue the

6-50     certificate; or

6-51                       (B)  without inspecting the vehicle;

6-52                 (4)  issuing an inspection certificate for a vehicle

6-53     with knowledge that the vehicle has not been repaired, adjusted, or

6-54     corrected after an inspection has shown a repair, adjustment, or

6-55     correction to be necessary;

6-56                 (5)  knowingly issuing an inspection certificate:

6-57                       (A)  for a vehicle without conducting an

6-58     inspection of each item required to be inspected; or

6-59                       (B)  for a vehicle that is missing an item

6-60     required to be inspected or that has an item required to be

6-61     inspected that is not in compliance with state law or department

6-62     rules;

6-63                 (6)  refusing to allow a vehicle's owner to have a

6-64     qualified person of the owner's choice make a required repair,

6-65     adjustment, or correction;

6-66                 (7)  charging for an inspection an amount greater than

6-67     the authorized fee;

6-68                 (8)  a violation of Subchapter F;

6-69                 (9)  a violation of Section 548.603; or

 7-1                 (10)  a conviction of a felony or a Class A or B

 7-2     misdemeanor that directly relates to or affects the duties or

 7-3     responsibilities of a vehicle inspection station or inspector or a

 7-4     conviction of a similar crime under the jurisdiction of another

 7-5     state or the federal government.

 7-6           (e)  For purposes of Subsection (d)(10), a person is

 7-7     convicted of an offense if a court enters against the person an

 7-8     adjudication of the person's guilt, including an order of probation

 7-9     or deferred adjudication.

7-10           (f)  To obtain an administrative hearing on a denial,

7-11     suspension, or revocation under this section, a person must submit

7-12     a written request for a hearing to the director not later than the

7-13     20th day after the date notice is delivered personally or is mailed

7-14     [given in person or is deposited in the United States mail as

7-15     provided by Subsection (a)].

7-16           (g) [(c)]  If the director receives a timely request under

7-17     Subsection (f), the director shall provide the person with an

7-18     opportunity for a hearing as soon as practicable.  A hearing on a

7-19     revocation or suspension under Subsection (d) that takes effect on

7-20     receipt of the notice must be held not later than 14 days after the

7-21     department receives the request for hearing.  The revocation or

7-22     suspension continues in effect until the hearing is completed if

7-23     the hearing is continued beyond the 14-day period:

7-24                 (1)  at the request of the inspector or inspection

7-25     station; or

7-26                 (2)  on a finding of good cause by a judge,

7-27     administrative law judge, or hearing officer.

7-28           (h)  If the director does not receive a timely request under

7-29     Subsection (f), the director may deny the application, revoke or

7-30     suspend a certificate, or sustain the revocation or suspension of a

7-31     certificate [act] without a hearing.

7-32           (i)  Except as provided by Subsection (g), the [(d)  The]

7-33     hearing must be held not earlier than the 11th day after the date

7-34     written notice of the hearing and[, including] a copy of the

7-35     charges[,] is given to the person by personal service or by

7-36     certified mail to the last address given to the department by the

7-37     person.

7-38           (j) [(e)]  The director or a person designated by the

7-39     director shall conduct the hearing and may administer oaths and

7-40     issue subpoenas for the attendance of witnesses and the production

7-41     of relevant books, papers, or documents.  If the hearing is

7-42     conducted by a person designated by the director, the director may

7-43     take action under this section on a recommendation of the

7-44     designated person.

7-45           (k) [(f)]  On the basis of the evidence submitted at the

7-46     hearing, the director may deny the application or revoke or suspend

7-47     the certificate.

7-48           (l)  If in conducting a hearing under this section an

7-49     administrative law judge of the State Office of Administrative

7-50     Hearings makes a proposal for a decision to deny an application or

7-51     to suspend or revoke a certificate, the administrative law judge

7-52     shall include in the proposal a finding of the costs, fees,

7-53     expenses, and reasonable and necessary attorney's fees the state

7-54     incurred in bringing the proceeding.  The director may adopt the

7-55     finding and make the finding a part of the final order entered in

7-56     the proceeding.  Proceeds collected from a finding made under this

7-57     subsection shall be deposited in a special account in the general

7-58     revenue fund that may be appropriated only to the attorney general.

7-59           SECTION 12.  Section 548.505, Transportation Code, is amended

7-60     to read as follows:

7-61           Sec. 548.505.  EMISSIONS-RELATED INSPECTION FEE.  (a)  The

7-62     department by rule may impose [commission may by rule establish] an

7-63     inspection fee for a vehicle inspected under Section 548.301(a) in

7-64     addition to the fee provided by Section 548.501, 548.502, [or]

7-65     548.503, or 548.504.  A fee imposed under this subsection must be

7-66     based on the costs of:

7-67                 (1)  producing certificates;

7-68                 (2)  providing inspections; and

7-69                 (3)  administering the program [for a vehicle inspected

 8-1     under Section 548.301(a)].

 8-2           (b)  The department may provide a maximum fee for an

 8-3     inspection under this subchapter.  The department may not set a

 8-4     minimum fee for an inspection under this subchapter [additional fee

 8-5     may not exceed:]

 8-6                 [(1)  $5 if only a parameter program is established; or]

 8-7                 [(2)  $10 if a program other than the parameter program

 8-8     is established under requirements of the United States.]

 8-9           [(c)  If an inspection under Section 548.501 or Section

8-10     548.503 is not performed when an inspection is performed under

8-11     Section 548.301(a), the only fee due is the fee authorized by this

8-12     section.]

8-13           [(d)  The conservation commission shall:]

8-14                 [(1)  pay to the department an amount equal to the cost

8-15     of producing certificates provided to centralized reinspection

8-16     stations under Section 548.304;]

8-17                 [(2)  establish a reinspection fee; and]

8-18                 [(3)  implement procedures governing the tracking of

8-19     certificates and the refunding of the cost of unissued certificates

8-20     provided to reinspection stations].

8-21           SECTION 13.  Section 548.601, Transportation Code, is amended

8-22     to read as follows:

8-23           Sec. 548.601.  OFFENSE GENERALLY.  (a)  A person, including

8-24     an inspector or an inspection station, [who operates a motor

8-25     vehicle in violation of this chapter or a rule adopted under this

8-26     chapter] commits an offense if the person:

8-27                 (1)  issues an inspection certificate with knowledge

8-28     that the issuance is in violation of this chapter or rules adopted

8-29     under this chapter;

8-30                 (2)  falsely or fraudulently represents to the owner or

8-31     operator of a vehicle that equipment inspected or required to be

8-32     inspected must be repaired, adjusted, or replaced for the vehicle

8-33     to pass an inspection;

8-34                 (3)  misrepresents:

8-35                       (A)  material information in an application in

8-36     violation of Section 548.402 or 548.403; or

8-37                       (B)  information filed with the department under

8-38     this chapter or as required by department rule;

8-39                 (4)  issues an inspection certificate:

8-40                       (A)  without authorization to issue the

8-41     certificate; or

8-42                       (B)  without inspecting the vehicle;

8-43                 (5)  issues an inspection certificate for a vehicle

8-44     with knowledge that the vehicle has not been repaired, adjusted, or

8-45     corrected after an inspection has shown a repair, adjustment, or

8-46     correction to be necessary;

8-47                 (6)  knowingly issues an inspection certificate:

8-48                       (A)  for a vehicle without conducting an

8-49     inspection of each item required to be inspected; or

8-50                       (B)  for a vehicle that is missing an item

8-51     required to be inspected or that has an item required to be

8-52     inspected that is not in compliance with state law or department

8-53     rules;

8-54                 (7)  refuses to allow a vehicle's owner to have a

8-55     qualified person of the owner's choice make a required repair,

8-56     adjustment, or correction; or

8-57                 (8)  charges for an inspection an amount greater than

8-58     the authorized fee.

8-59           (b)  Unless otherwise specified in this chapter, an offense

8-60     under this section is a Class C [that is a] misdemeanor.

8-61           (c)  A designated representative of the department may issue

8-62     a notice of an offense or a notice to appear to a person, including

8-63     an inspector or inspection station, who violates this chapter or a

8-64     rule adopted under this chapter.

8-65           [(b)  This section does not apply to operation of a vehicle

8-66     that is:]

8-67                 [(1)  licensed in another state; and]

8-68                 [(2)  being temporarily and legally operated under a

8-69     reciprocity agreement.]

 9-1           SECTION 14.  Subsection (a), Section 548.602, Transportation

 9-2     Code, is amended to read as follows:

 9-3           (a)  After the fifth day after the date of expiration of the

 9-4     period designated for inspection, a person may not operate:

 9-5                 (1)  a motor vehicle registered in this state unless a

 9-6     current [an] inspection certificate is displayed on the vehicle; or

 9-7                 (2)  a commercial motor vehicle registered in this

 9-8     state unless it is equipped as required by federal motor carrier

 9-9     safety regulations and displays an inspection certificate issued

9-10     under the program established under Section 548.201.

9-11           SECTION 15.  Section 548.603, Transportation Code, is amended

9-12     to read as follows:

9-13           Sec. 548.603.  [DISPLAY OF] FICTITIOUS OR COUNTERFEIT

9-14     INSPECTION CERTIFICATE OR INSURANCE DOCUMENT.  (a)  A person

9-15     commits an offense if the person:

9-16                 (1)  displays [or causes or permits to be displayed] an

9-17     inspection certificate or insurance document knowing that the

9-18     certificate or document is counterfeit, tampered with, altered, [it

9-19     to be] fictitious, issued for another vehicle, or issued in

9-20     violation of:

9-21                       (A)  this chapter, rules adopted under this

9-22     chapter, or other law of this state; or

9-23                       (B)  a law of another state, the United States,

9-24     the United Mexican States, a state of the United Mexican States,

9-25     Canada, or a province of Canada; [without the required inspection

9-26     having been made; or]

9-27                 (2)  transfers an inspection certificate from a

9-28     windshield or location to another windshield or location;

9-29                 (3)  with intent to circumvent the emissions inspection

9-30     requirements seeks an inspection of a vehicle at a station not

9-31     certified to perform an emissions inspection if the person knows

9-32     that the vehicle is required to be inspected under Section 548.301;

9-33                 (4)  knowingly does not comply with an emissions

9-34     inspection requirement for a vehicle; or

9-35                 (5)  displays on a vehicle an inspection certificate

9-36     that was obtained knowing that the vehicle does not meet all

9-37     emissions inspection requirements for the vehicle.

9-38           (b)  A person commits an offense if the person:

9-39                 (1)  makes or possesses, with the intent to sell,

9-40     circulate, or pass, a counterfeit inspection certificate or

9-41     insurance document; or

9-42                 (2)  possesses any part of a stamp, dye, plate,

9-43     negative, machine, or other device that is used or designated for

9-44     use in making a counterfeit inspection certificate or insurance

9-45     document.

9-46           (c)  The owner of a vehicle commits an offense if the owner

9-47     knowingly allows the vehicle to be registered or[:]

9-48                 [(1)  is] operated while the vehicle [or parked on a

9-49     public highway; and]

9-50                 [(2)]  displays an inspection certificate in violation

9-51     of Subsection (a).

9-52           (d)  An [(c)  Except as provided by Subsection (d), an]

9-53     offense under Subsection (a) or (c) is a Class B misdemeanor.  An

9-54     offense under Subsection (b) is a third degree felony unless the

9-55     person acts with the intent to defraud or harm another person, in

9-56     which event the offense is a second degree felony.

9-57           (e)  In this section:

9-58                 (1)  "Counterfeit" means an imitation of a document

9-59     that is printed, engraved, copied, photographed, forged, or

9-60     manufactured by a person not authorized to take that action under:

9-61                       (A)  this chapter, rules adopted under this

9-62     chapter, or other law of this state; or

9-63                       (B)  a law of another state, the United States,

9-64     the United Mexican States, a state of the United Mexican States,

9-65     Canada, or a province of Canada.

9-66                 (2)  "Inspection certificate" means a document that is

9-67     printed, manufactured, or made by the department or an authorized

9-68     agent of the department for issuance after a vehicle passes an

9-69     inspection performed under this chapter.

 10-1                (3)  "Insurance document" means a standard proof of

 10-2    motor vehicle insurance coverage that is:

 10-3                      (A)  in a form prescribed by the Texas Department

 10-4    of Insurance or by a similarly authorized board, agency, or

 10-5    authority of another state; and

 10-6                      (B)  issued by an insurer or insurer's agent who

 10-7    is authorized to write motor vehicle insurance coverage.

 10-8                (4)  "Person" includes an inspection station or

 10-9    inspector [punishable by a fine of not less than $100 or more than

10-10    $200.]

10-11          [(d)  An offense under Subsection (a)  is a Class B

10-12    misdemeanor if:]

10-13                [(1)  the certificate is a motor vehicle emissions

10-14    inspection certificate; and]

10-15                [(2)  the owner of the vehicle knows the certificate is

10-16    in violation of Subsection (a)].

10-17          (f) [(e)]  A motor vehicle on which [is displayed] a vehicle

10-18    emissions inspection certificate is displayed in violation of

10-19    Subsection (a) and that is operated or parked on a public roadway

10-20    may be impounded by a peace officer or other authorized employee of

10-21    this state or a political subdivision of this state in which the

10-22    vehicle is operated or parked.

10-23          SECTION 16.  Subchapter C, Chapter 552, Government Code, is

10-24    amended by adding Section 552.127 to read as follows:

10-25          Sec. 552.127.  MOTOR VEHICLE INSPECTION INFORMATION.  A

10-26    record created during a motor vehicle emissions inspection under

10-27    Subchapter F, Chapter 548, Transportation Code, that relates to an

10-28    individual vehicle or owner of an individual vehicle is excepted

10-29    from the requirements of Section 552.021.

10-30          SECTION 17.  (a)  In addition to the substantive changes made

10-31    by this Act, this Act conforms:

10-32                (1)  Section 548.001, Transportation Code, to Section

10-33    25, Chapter 705, Acts of the 74th Legislature, 1995;

10-34                (2)  Section 548.301, Transportation Code, to Section

10-35    8, Chapter 34, Acts of the 74th Legislature, 1995;

10-36                (3)  Section 548.304, Transportation Code, to Sections

10-37    6 and 8, Chapter 34, Acts of the 74th Legislature, 1995; and

10-38                (4)  Section 548.603, Transportation Code, to Section

10-39    7, Chapter 34, Acts of the 74th Legislature, 1995.

10-40          (b)  To the extent of any conflict, this Act prevails over

10-41    another Act of the 75th Legislature, Regular Session, 1997, that

10-42    relates to nonsubstantive additions to and corrections in enacted

10-43    codes, except for an amendment to Subdivision (5), Section 548.001,

10-44    Transportation Code, made by such an Act.

10-45          SECTION 18.  The following are repealed:

10-46                (1)  Subsection (a-1), Section 382.037, and Section

10-47    382.0371, Health and Safety Code;

10-48                (2)  Subsection (c), Section 548.256, and Section

10-49    548.305, Transportation Code;

10-50                (3)  Section 25, Chapter 705, Acts of the 74th

10-51    Legislature, 1995; and

10-52                (4)  Sections 6, 7, and 8, Chapter 34, Acts of the 74th

10-53    Legislature, 1995.

10-54          SECTION 19.  (a)  Sections 1 through 18 of this Act take

10-55    effect September 1, 1997, or 60 days after the effective date of

10-56    this section, whichever is later.

10-57          (b)  The changes in law made by this Act apply only to an

10-58    offense committed or a violation of a statute or agency rule that

10-59    occurs on or after the effective date of the provision of this Act

10-60    that makes the changes in law.  For purposes of this section, an

10-61    offense occurs, or a violation of a statute or agency rule occurs,

10-62    before the effective date of this Act if any element of the offense

10-63    or violation occurs before that date, and the former law is

10-64    continued in effect for that purpose.

10-65          (c)  This section takes effect immediately.

10-66          SECTION 20.  The importance of this legislation and the

10-67    crowded condition of the calendars in both houses create an

10-68    emergency and an imperative public necessity that the

10-69    constitutional rule requiring bills to be read on three several

 11-1    days in each house be suspended, and this rule is hereby suspended,

 11-2    and that this Act take effect and be in force according to its

 11-3    terms, and it is so enacted.

 11-4                                 * * * * *