77R13806 E                           
         By Chisum                                             H.B. No. 2134
         Substitute the following for H.B. No. 2134:
         By Uher                                           C.S.H.B. No. 2134
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of motor vehicle emissions; providing
 1-3     penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 382, Health and Safety Code, is amended
 1-6     by adding Subchapter G and Sections 382.037-382.039, Health and
 1-7     Safety Code, are transferred to new Subchapter G, renumbered as
 1-8     Sections 382.202-382.208, and amended to read as follows:
 1-9                      SUBCHAPTER G.  VEHICLE EMISSIONS
1-10           Sec. 382.201.  DEFINITIONS.  In this subchapter:
1-11                 (1)  "Affected county" means a county with a motor
1-12     vehicle emissions inspection and maintenance program established
1-13     under Section 548.301, Transportation Code.
1-14                 (2)  "Commercial vehicle" means a vehicle that is owned
1-15     or leased in the regular course of business of a commercial or
1-16     business entity.
1-17                 (3)  "Fleet vehicle" means a motor vehicle operated as
1-18     one of a group that consists of more than 10 motor vehicles and
1-19     that is owned and operated by a public or commercial entity or by a
1-20     private entity other than a single household.
1-21                 (4)  "Participating county" means an affected county in
1-22     which the commissioners court by resolution has chosen to implement
1-23     a low-income vehicle repair assistance, retrofit, and accelerated
1-24     vehicle retirement program authorized by Section 382.209.
 2-1                 (5)  "Retrofit" means to equip, or the equipping of, an
 2-2     engine or an exhaust or fuel system with new, emissions-reducing
 2-3     parts or equipment designed to reduce air emissions and improve air
 2-4     quality, after the manufacture of the original engine or exhaust or
 2-5     fuel system, so long as the parts or equipment allow the vehicle to
 2-6     meet or exceed state and federal air emissions reduction standards.
 2-7                 (6)  "Retrofit equipment" means emissions-reducing
 2-8     equipment designed to reduce air emissions and improve air quality
 2-9     that is installed after the manufacture of the original engine or
2-10     exhaust or fuel system.
2-11                 (7)  "Vehicle" includes a fleet vehicle.
2-12           Sec. 382.202 [382.037].  VEHICLE EMISSIONS INSPECTION AND
2-13     MAINTENANCE PROGRAM.  (a)  The commission by resolution may request
2-14     the Public Safety Commission to establish a vehicle emissions
2-15     inspection and maintenance program under Subchapter F, Chapter 548,
2-16     Transportation Code, in accordance with this section and rules
2-17     adopted under this section.  The commission by rule may establish,
2-18     implement, and administer a program requiring emissions-related
2-19     inspections of motor vehicles to be performed at inspection
2-20     facilities consistent with the requirements of the federal Clean
2-21     Air Act (42 U.S.C. Section 7401 et seq.) and its subsequent
2-22     amendments.
2-23           (b)  The commission by rule may require emissions-related
2-24     inspection and maintenance of land vehicles, including testing
2-25     exhaust emissions, examining emission control devices and systems,
2-26     verifying compliance with applicable standards, and other
2-27     requirements as provided by federal law or regulation.
 3-1           (c)  If the program is established under this section, the
 3-2     commission:
 3-3                 (1)  shall adopt vehicle emissions inspection and
 3-4     maintenance requirements for certain areas as required by federal
 3-5     law or regulation; and
 3-6                 (2)  shall [may] adopt vehicle emissions inspection and
 3-7     maintenance requirements for counties not subject to a specific
 3-8     federal requirement in response to a formal request by resolutions
 3-9     adopted by the county and the most populous municipality within the
3-10     county according to the most recent federal decennial census.
3-11           (d)  On adoption of a resolution by the commission and after
3-12     proper notice, the Department of Public Safety of the State of
3-13     Texas shall implement a system that requires, as a condition of
3-14     obtaining a safety inspection certificate issued under Subchapter
3-15     C, Chapter 548, Transportation Code, in a county that is included
3-16     in a vehicle emissions inspection and maintenance program under
3-17     Subchapter F of that chapter, that the vehicle, unless the vehicle
3-18     is not covered by the system, be annually or biennially inspected
3-19     under the vehicle emissions inspection and maintenance program as
3-20     required by the state's air quality state implementation plan.  The
3-21     Department of Public Safety shall implement such a system when it
3-22     is required by any provision of federal or state law, including any
3-23     provision of the state's air quality state implementation plan.
3-24           (e)  The commission may assess fees for vehicle
3-25     emissions-related inspections performed at inspection or
3-26     reinspection facilities authorized and licensed by the commission
3-27     in amounts reasonably necessary to recover the costs of developing,
 4-1     administering, evaluating, and enforcing the vehicle emissions
 4-2     inspection and maintenance program.  If the program relies on
 4-3     privately operated or contractor-operated inspection or
 4-4     reinspection stations, an appropriate portion of the fee as
 4-5     determined by commission rule may be retained by the station owner,
 4-6     contractor, or operator to recover the cost of performing the
 4-7     inspections and provide for a reasonable margin of profit.  Any
 4-8     portion of the fee collected by the commission is a Clean Air Act
 4-9     fee under Section 382.0622.
4-10           (f)  Notwithstanding limitations on fees charged for
4-11     emissions testing under this chapter or for safety inspections
4-12     under Chapter 548, Transportation Code, an inspection station
4-13     owner, contractor, or operator may charge an additional amount of
4-14     not more than $10 for each vehicle for a combined safety inspection
4-15     and emissions test for each vehicle in an affected county or a
4-16     participating county if the hourly labor rate warrants an
4-17     additional charge.  If an inspection station owner, contractor, or
4-18     operator charges an additional amount under this subsection, at
4-19     least one sign must be prominently displayed outside the facility
4-20     and at least one sign must be prominently displayed inside the
4-21     facility, in places clearly visible to the public, stating:
4-22                 (1)  the total fee for the inspection;
4-23                 (2)  the part of the fee assessed by the state;
4-24                 (3)  the part of the fee charged by the station in
4-25     excess of the state fee and retained by the station;
4-26                 (4)  the hourly labor rate charged by the station;
4-27                 (5)  that the fee is the same whether the vehicle
 5-1     passes or fails the inspection; and
 5-2                 (6)  that "Emissions inspections conducted at this
 5-3     station are mandated by requirements of the federal Clean Air Act
 5-4     (42 U.S.C. Section 7401 et seq.)."
 5-5           (g)  The commission shall:
 5-6                 (1)  use part of the fee collected under Subsection (e)
 5-7     to fund low-income vehicle repair assistance, retrofit, and
 5-8     accelerated vehicle retirement programs created under Section
 5-9     382.209; and
5-10                 (2)  to the extent practicable, distribute available
5-11     funding created under Subsection (e) to participating counties in
5-12     reasonable proportion to the amount of fees collected under
5-13     Subsection (e) in those counties or in the regions in which those
5-14     counties are located.
5-15           (h)  Regardless of whether different tests are used for
5-16     different vehicles as determined under Section 382.205, the
5-17     commission may:
5-18                 (1)  set fees assessed under Subsection (e) at the same
5-19     rate for each vehicle in a county or region; and
5-20                 (2)  set different fees for different counties or
5-21     regions.
5-22           (i)  The commission shall examine the efficacy of annually
5-23     inspecting diesel vehicles for compliance with applicable federal
5-24     emission standards, compliance with an opacity or other
5-25     emissions-related standard established by commission rule, or both
5-26     and shall implement that inspection program if the commission
5-27     determines the program would minimize emissions.  For purposes of
 6-1     this subsection, a diesel engine not used in a vehicle registered
 6-2     for use on public highways is not a diesel vehicle.
 6-3           (j) [(g)]  The commission may not establish vehicle fuel
 6-4     content standards to provide for vehicle fuel content for clean
 6-5     motor vehicle fuels other than those standards promulgated by the
 6-6     United States Environmental Protection Agency unless specifically
 6-7     authorized by the legislature or unless it is demonstrated to be
 6-8     necessary for the attainment of federal ozone ambient air quality
 6-9     standards or, following appropriate health studies and in
6-10     consultation with the Texas Department of Health, it is determined
6-11     to be necessary for the protection of public health.
6-12           (k)  The commission by rule may establish classes of vehicles
6-13     that are exempt from vehicle emissions inspections and by rule may
6-14     establish procedures to allow and review petitions for the
6-15     exemption of individual vehicles, according to criteria established
6-16     by commission rule.  Rules adopted by the commission under this
6-17     subsection must be consistent with federal law.  The commission by
6-18     rule may establish fees to recover the costs of administering this
6-19     subsection.  Fees collected under this subsection shall be
6-20     deposited to the credit of the clean air account, an account in the
6-21     general revenue fund, and may be used only for the purposes of this
6-22     section.
6-23           (l) [(m)]  Except as provided by this subsection, a person
6-24     who sells or transfers ownership of a motor vehicle for which a
6-25     vehicle emissions inspection certificate has been issued is not
6-26     liable for the cost of emission control system repairs that are
6-27     required for the vehicle subsequently to receive an emissions
 7-1     inspection certificate.  This subsection does not apply to repairs
 7-2     that are required because emission control equipment or devices on
 7-3     the vehicle were removed or tampered with before the sale or
 7-4     transfer of the vehicle.
 7-5           (m) [(n)]  The commission may conduct audits to determine
 7-6     compliance with this section.
 7-7           Sec. 382.203 [382.0372].  VEHICLES SUBJECT TO PROGRAM;
 7-8     EXEMPTIONS.  (a)  The inspection and maintenance program applies to
 7-9     any gasoline-powered vehicle that is:
7-10                 (1)  required to be registered in and is primarily
7-11     operated in an affected county [Dallas, Tarrant, El Paso, or Harris
7-12     County]; and
7-13                 (2)  at least two and less than 25 years old; or
7-14                 (3)  subject to test-on-resale requirements under
7-15     Section 548.3011, Transportation Code.
7-16           (b)  In addition to a vehicle described by Subsection (a),
7-17     the program applies to:
7-18                 (1)  a vehicle with United States governmental plates
7-19     primarily operated in an affected county [Dallas, Tarrant, El Paso,
7-20     or Harris County];
7-21                 (2)  a vehicle operated on a federal facility in an
7-22     affected county [Dallas, Tarrant, El Paso, or Harris County]; and
7-23                 (3)  a vehicle primarily operated in an affected county
7-24     [Dallas, Tarrant, El Paso, or Harris County] that is exempt from
7-25     motor vehicle registration requirements or eligible under Chapter
7-26     502, Transportation Code, to display an "exempt" license plate.
7-27           (c)  The Department of Public Safety of the State of Texas by
 8-1     rule may waive program requirements, in accordance with standards
 8-2     adopted by the commission, for certain vehicles and vehicle owners,
 8-3     including:
 8-4                 (1)  the registered owner of a vehicle who[:]
 8-5                       [(A)]  cannot afford to comply with the program,
 8-6     based on reasonable income standards; [or]
 8-7                       [(B)  has spent a reasonable amount of money, set
 8-8     by the commission, to repair the vehicle, without bringing the
 8-9     vehicle into compliance with emissions standards; and]
8-10                 (2)  a vehicle that cannot be brought into compliance
8-11     with emissions standards by performing repairs;
8-12                 (3)  a vehicle:
8-13                       (A)  on which at least $100 has been spent to
8-14     bring the vehicle into compliance; and
8-15                       (B)  that the department:
8-16                             (i)  can verify was driven fewer than 5,000
8-17     miles since the last safety inspection; and
8-18                             (ii)  reasonably determines will be driven
8-19     fewer than 5,000 miles during the period before the next safety
8-20     inspection is required; and
8-21                 (4)  a vehicle for which parts are not readily
8-22     available.
8-23           (d)  The program does not apply to a:
8-24                 (1)  motorcycle;
8-25                 (2)  slow-moving vehicle as defined by Section 547.001,
8-26     Transportation Code; [or]
8-27                 (3)  vehicle that is registered but not operated
 9-1     primarily in a county or group of counties subject to a motor
 9-2     vehicle emissions inspection program established under Subchapter
 9-3     F, Chapter 548, Transportation Code; or
 9-4                 (4)  motor vehicle registered in a rural county in
 9-5     which fewer than 70,000 motor vehicles are registered, regardless
 9-6     of whether the county would otherwise be subject to a motor vehicle
 9-7     emissions inspection program established under Subchapter F,
 9-8     Chapter 548, Transportation Code [circus vehicle].
 9-9           Sec. 382.204 [382.0373].  REMOTE SENSING PROGRAM COMPONENT.
9-10     (a)  The commission and the Department of Public Safety of the
9-11     State of Texas jointly shall develop a program component for
9-12     enforcing vehicle emissions testing and standards by use of remote
9-13     or automatic emissions detection and analysis equipment.
9-14           (b)  The program component may be employed in any county
9-15     designated as a nonattainment area within the meaning of Section
9-16     107(d) of the Clean Air Act (42 U.S.C. Section 7407) and its
9-17     subsequent amendments, in any affected county, or in any county
9-18     adjacent to an affected county.
9-19           (c)  If a vehicle registered in a county adjacent to an
9-20     affected county is detected under the program component authorized
9-21     by this section as operating and exceeding acceptable emissions
9-22     limitations in an affected county, the department shall provide
9-23     notice of the violation under Section 548.306, Transportation Code.
9-24           Sec. 382.205 [382.0374].  INSPECTION EQUIPMENT AND
9-25     PROCEDURES.  (a)  The commission by rule may adopt:
9-26                 (1)  standards and specifications for motor vehicle
9-27     emissions testing equipment;
 10-1                (2)  recordkeeping and reporting procedures; and
 10-2                (3)  measurable emissions standards a vehicle must meet
 10-3    to pass the inspection.
 10-4          (b)  In adopting standards and specifications under
 10-5    Subsection (a), the commission may require different types of tests
 10-6    for different vehicle models.
 10-7          (c)  In consultation with the Department of Public Safety of
 10-8    the State of Texas, the commission may contract with one or more
 10-9    private entities to provide testing equipment, training, and
10-10    related services to inspection stations in exchange for part of the
10-11    testing fee.  A contract under this subsection may apply to one
10-12    specified area of the state or to the entire state.
10-13          (d)  The Department of Public Safety of the State of Texas by
10-14    rule shall adopt:
10-15                (1)  testing procedures in accordance with motor
10-16    vehicle emissions testing equipment specifications;  and
10-17                (2)  procedures for issuing or denying an emissions
10-18    inspection certificate.
10-19          (e)  The commission and the Department of Public Safety of
10-20    the State of Texas by joint rule may adopt procedures to ensure
10-21    that a stable private market exists for providing emissions testing
10-22    to the public in all areas of an affected county, including:
10-23                (1)  limits on the amount and type of testing equipment
10-24    in a given area of an affected county;
10-25                (2)  allowing facilities to perform one or more types
10-26    of emissions tests; and
10-27                (3)  any other measure the commission and the
 11-1    Department of Public Safety consider appropriate.
 11-2          (f)  Rules and procedures under this section must ensure that
 11-3    approved repair facilities participating in a low-income vehicle
 11-4    repair assistance, retrofit, and accelerated vehicle retirement
 11-5    program established under Section 382.209 have access to adequate
 11-6    testing equipment.
 11-7          (g) [(c)]  Subject to Subsection (h) [(d)], the commission
 11-8    and the Department of Public Safety of the State of Texas by rule
 11-9    may allow alternative vehicle emissions testing[, including onboard
11-10    diagnostic testing,] if:
11-11                (1)  the technology provides accurate and reliable
11-12    results;
11-13                (2)  the technology is widely and readily available to
11-14    persons interested in performing alternative vehicle emissions
11-15    testing; and
11-16                (3)  the use of alternative testing is not likely to
11-17    substantially affect federal approval of the state's air quality
11-18    state implementation plan.
11-19          (h) [(d)]  A rule adopted under Subsection (g) [(c)] may not
11-20    be more restrictive than federal regulations governing vehicle
11-21    emissions testing.
11-22          Sec. 382.206 [382.0375].  COLLECTION OF DATA; REPORT.  (a)
11-23    The commission and the Department of Public Safety of the State of
11-24    Texas may collect inspection and maintenance information derived
11-25    from the emissions inspection and maintenance program, including:
11-26                (1)  inspection results;
11-27                (2)  inspection station information;
 12-1                (3)  information regarding vehicles operated on federal
 12-2    facilities;
 12-3                (4)  vehicle registration information; and
 12-4                (5)  other data the United States Environmental
 12-5    Protection Agency requires.
 12-6          (b)  The commission shall:
 12-7                (1)  report the information to the United States
 12-8    Environmental Protection Agency; and
 12-9                (2)  compare the information on inspection results with
12-10    registration information for enforcement purposes.
12-11          Sec. 382.207 [382.038].  INSPECTION STATIONS; QUALITY CONTROL
12-12    AUDITS.  (a)  The Department of Public Safety of the State of Texas
12-13    by rule shall adopt standards and procedures for establishing
12-14    vehicle emissions inspection stations authorized and licensed by
12-15    the state.
12-16          (b)  A vehicle emissions inspection may be performed at a
12-17    decentralized independent inspection station or at a centralized
12-18    inspection facility operated or licensed by the state.  In
12-19    developing the program for vehicle emissions inspections, the
12-20    Department of Public Safety shall make all reasonable efforts to
12-21    preserve the present decentralized system.
12-22          (c)  After consultation with the Texas Department of
12-23    Transportation, the commission shall require state and local
12-24    transportation planning entities designated by the commission to
12-25    prepare long-term projections of the combined impact of significant
12-26    planned transportation system changes on emissions and air quality.
12-27    The projections shall be prepared using air pollution estimation
 13-1    methodologies established jointly by the commission and the Texas
 13-2    Department of Transportation.  This subsection does not restrict
 13-3    the Texas Department of Transportation's function as the
 13-4    transportation planning body for the state or its role in
 13-5    identifying and initiating specific transportation-related projects
 13-6    in the state.
 13-7          (d)  The Department of Public Safety may authorize
 13-8    enforcement personnel or other individuals to remove, disconnect,
 13-9    adjust, or make inoperable vehicle emissions control equipment,
13-10    devices, or systems and to operate a vehicle in the tampered
13-11    condition in order to perform a quality control audit of an
13-12    inspection station or other quality control activities as necessary
13-13    to assess and ensure the effectiveness of the vehicle emissions
13-14    inspection and maintenance program.
13-15          (e)  The Department of Public Safety shall develop a
13-16    challenge station program to provide for the reinspection of a
13-17    motor vehicle at the option of the owner of the vehicle to ensure
13-18    quality control of a vehicle emissions inspection and maintenance
13-19    system.
13-20          (f)  The commission may contract with one or more private
13-21    entities to operate a program established under this section.
13-22          (g)  In addition to other procedures established by the
13-23    commission, the commission shall establish procedures by which a
13-24    private entity with whom the commission has entered into a contract
13-25    to operate a program established under this section may agree to
13-26    perform:
13-27                (1)  testing at a fleet facility or dealership using
 14-1    mobile test equipment;
 14-2                (2)  testing at a fleet facility or dealership using
 14-3    test equipment owned by the fleet or dealership but calibrated and
 14-4    operated by the private entity's personnel; or
 14-5                (3)  testing at a fleet facility or dealership using
 14-6    test equipment owned and operated by the private entity and
 14-7    installed at the fleet or dealership facility.
 14-8          (h)  The fee for a test conducted as provided by Subsection
 14-9    (g) shall be set by the commission in an amount not to exceed twice
14-10    the fee otherwise provided by law or by rule of the commission.  An
14-11    appropriate portion of the fee, as determined by the commission,
14-12    may be remitted by the private entity to the fleet facility or
14-13    dealership.
14-14          Sec. 382.208 [382.039].  ATTAINMENT PROGRAM.  (a)  The
14-15    commission shall coordinate with federal, state, and local
14-16    transportation planning agencies to develop and implement
14-17    transportation programs and other measures necessary to demonstrate
14-18    and maintain attainment of national ambient air quality standards
14-19    and to protect the public from exposure to hazardous air
14-20    contaminants from motor vehicles.
14-21          (b)  Participating agencies include the Texas Department of
14-22    Transportation and metropolitan planning organizations designated
14-23    by the governor.
14-24          Sec. 382.209.  LOW-INCOME VEHICLE REPAIR ASSISTANCE,
14-25    RETROFIT, AND ACCELERATED VEHICLE RETIREMENT PROGRAM.  (a)  The
14-26    commission, the Texas Department of Transportation, and the Public
14-27    Safety Commission by joint rule shall establish and authorize the
 15-1    commissioners court of a participating county to implement a
 15-2    low-income vehicle repair assistance, retrofit, and accelerated
 15-3    vehicle retirement program subject to agency oversight that may
 15-4    include reasonable periodic commission audits.
 15-5          (b)  The commission shall provide funding for local
 15-6    low-income vehicle repair assistance, retrofit, and accelerated
 15-7    vehicle retirement programs with available funds collected under
 15-8    Section 382.202 or other designated and available funds.  Not more
 15-9    than 10 percent of the money provided to a local low-income vehicle
15-10    repair assistance, retrofit, and accelerated vehicle retirement
15-11    program under this section may be used for administration of the
15-12    programs.
15-13          (c)  The rules adopted under Subsection (a) must provide
15-14    procedures for ensuring that a program implemented under authority
15-15    of that subsection does not apply to a vehicle that is:
15-16                (1)  registered under Section 502.274 or 502.275,
15-17    Transportation Code; and
15-18                (2)  not regularly used for transportation during the
15-19    normal course of daily activities.
15-20          (d)  Subject to the availability of funds, a low-income
15-21    vehicle repair assistance, retrofit, and accelerated vehicle
15-22    retirement program established under this section shall provide
15-23    monetary or other compensatory assistance for:
15-24                (1)  repairs directly related to bringing certain
15-25    vehicles that have failed a required emissions test into compliance
15-26    with emissions requirements;
15-27                (2)  a replacement vehicle or replacement assistance
 16-1    for a vehicle that has failed a required emissions test and for
 16-2    which the cost of repairs needed to bring the vehicle into
 16-3    compliance is uneconomical; and
 16-4                (3)  installing retrofit equipment on vehicles that
 16-5    have failed a required emissions test, if practically and
 16-6    economically feasible, in lieu of or in combination with repairs
 16-7    performed under Subdivision (1).  The commission and the Department
 16-8    of Public Safety of the State of Texas shall establish standards
 16-9    and specifications for retrofit equipment that may be used under
16-10    this section.
16-11          (e)  A vehicle is not eligible to participate in a low-income
16-12    vehicle repair assistance, retrofit, and accelerated vehicle
16-13    retirement program established under this section unless:
16-14                (1)  the registration of the vehicle:
16-15                      (A)  is current; and
16-16                      (B)  reflects that the vehicle has been
16-17    registered in the county implementing the program for the two years
16-18    preceding the application for participation in the program;
16-19                (2)  the commissioners court of the county
16-20    administering the program determines that the vehicle meets the
16-21    eligibility criteria adopted by the commission, the Texas
16-22    Department of Transportation, and the Public Safety Commission; and
16-23                (3)  if the vehicle is to be repaired, the repair is
16-24    done by a repair facility recognized by the Department of Public
16-25    Safety, which may be an independent or private entity licensed by
16-26    the state.
16-27          (f)  A fleet vehicle, a vehicle owned or leased by a
 17-1    governmental entity, or a commercial vehicle is not eligible to
 17-2    participate in a low-income vehicle repair assistance, retrofit,
 17-3    and accelerated vehicle retirement program established and
 17-4    implemented under this section.
 17-5          (g)  A participating county may contract with any appropriate
 17-6    entity or with another county for services necessary to implement
 17-7    the participating county's low-income vehicle repair assistance,
 17-8    retrofit, and accelerated vehicle retirement program.
 17-9          (h)  Participation by an affected county in a low-income
17-10    vehicle repair assistance, retrofit, and accelerated vehicle
17-11    retirement program is not mandatory.  To the extent allowed by
17-12    federal law, any emissions reductions attributable to a low-income
17-13    vehicle repair assistance, retrofit, and accelerated vehicle
17-14    retirement program in a county that are attained during a period
17-15    before the county is designated as a nonattainment county shall be
17-16    considered emissions reductions credit if the county is later
17-17    determined to be a nonattainment county.
17-18          Sec. 382.210.  IMPLEMENTATION GUIDELINES.  The commission by
17-19    rule shall adopt guidelines to assist a participating county in
17-20    implementing a low-income vehicle repair assistance, retrofit, and
17-21    accelerated vehicle retirement program authorized under Section
17-22    382.209.  The guidelines at a minimum shall recommend:
17-23                (1)  a minimum and maximum amount for repair
17-24    assistance;
17-25                (2)  a minimum and maximum amount toward the purchase
17-26    price of a replacement vehicle qualified for the accelerated
17-27    retirement program;
 18-1                (3)  criteria for determining eligibility, taking into
 18-2    account:
 18-3                      (A)  the vehicle owner's income;
 18-4                      (B)  the fair market value of the vehicle; and
 18-5                      (C)  any other relevant considerations;
 18-6                (4)  safeguards for preventing fraud in the repair,
 18-7    purchase, or sale of a vehicle in the program; and
 18-8                (5)  procedures for determining the degree and amount
 18-9    of repair assistance a vehicle is allowed, based on:
18-10                      (A)  the amount of money the vehicle owner has
18-11    spent on repairs;
18-12                      (B)  the vehicle owner's income; and
18-13                      (C)  any other relevant factors.
18-14          Sec. 382.211.  LOCAL ADVISORY PANEL.  (a)  The commissioners
18-15    court of a participating county may appoint one or more local
18-16    advisory panels consisting of representatives of automobile
18-17    dealerships, the automotive repair industry, safety inspection
18-18    facilities, the public, antique and vintage car clubs, local
18-19    nonprofit organizations, and locally affected governments to advise
18-20    the county regarding the operation of the county's low-income
18-21    vehicle repair assistance, retrofit, and accelerated vehicle
18-22    retirement program, including the identification of a vehicle make
18-23    or model with intrinsic value as an existing or future collectible.
18-24          (b)  The commissioners court may delegate all or part of the
18-25    administrative and financial matters to one or more local advisory
18-26    panels established under Subsection (a).
18-27          Sec. 382.212.  EMISSIONS REDUCTION CREDIT.  (a)  In this
 19-1    section, "emissions reduction credit" means an emissions reduction
 19-2    certified by the commission that is:
 19-3                (1)  created by eliminating future emissions,
 19-4    quantified during or before the period in which emissions
 19-5    reductions are made;
 19-6                (2)  expressed in tons or partial tons per year; and
 19-7                (3)  banked by the commission in accordance with
 19-8    commission rules relating to emissions banking.
 19-9          (b)  To the extent allowable under federal law, the
19-10    commission by rule shall authorize:
19-11                (1)  the assignment of a percentage of emissions
19-12    reduction credit to a private, commercial, or business entity that
19-13    purchases, for accelerated retirement, a qualified vehicle under a
19-14    low-income vehicle repair assistance, retrofit, and accelerated
19-15    vehicle retirement program;
19-16                (2)  the transferability of an assigned emissions
19-17    reduction credit;
19-18                (3)  the use of emissions reduction credit by the
19-19    holder of the credit against any state or federal emissions
19-20    requirements applicable to a facility owned or operated by the
19-21    holder of the credit;
19-22                (4)  the assignment of a percentage of emissions
19-23    reduction credit, on the retirement of a fleet vehicle, a vehicle
19-24    owned or leased by a governmental entity, or a commercial vehicle,
19-25    to the owner or lessor of the vehicle; and
19-26                (5)  other actions relating to the disposition or use
19-27    of emissions reduction credit that the commission determines will
 20-1    benefit the implementation of low-income vehicle repair assistance,
 20-2    retrofit, and accelerated vehicle retirement programs established
 20-3    under Section 382.209.
 20-4          Sec. 382.213.  DISPOSITION OF RETIRED VEHICLE.  (a)  Except
 20-5    as provided by Subsection (c) and Subdivision (5) of this
 20-6    subsection, a vehicle retired under an accelerated vehicle
 20-7    retirement program authorized by Section 382.209 may not be resold
 20-8    or reused in its entirety in this or another state.  The vehicle
 20-9    must be:
20-10                (1)  destroyed;
20-11                (2)  recycled;
20-12                (3)  dismantled and its parts sold as used parts or
20-13    used in the program;
20-14                (4)  placed in a storage facility of a program
20-15    established under Section 382.209 and subsequently destroyed,
20-16    recycled, or dismantled and its parts sold or used in the program;
20-17    or
20-18                (5)  repaired, brought into compliance, and used as a
20-19    replacement vehicle under Section 382.209(d)(2).
20-20          (b)  Not more than 10 percent of all vehicles eligible for
20-21    retirement under this section may be used as replacement vehicles
20-22    under Subsection (a)(5).
20-23          (c)  A vehicle identified by a local advisory panel as an
20-24    existing or future collectible vehicle under Section 382.211 may be
20-25    sold to an individual if the vehicle:
20-26                (1)  is removed from the state;
20-27                (2)  is removed from an affected county; or
 21-1                (3)  is stored for future restoration and cannot be
 21-2    registered in an affected county except under Section 502.274 or
 21-3    502.275, Transportation Code.
 21-4          Sec. 382.214.  SALE OF VEHICLE WITH INTENT TO DEFRAUD.  (a)
 21-5    A person who with intent to defraud sells a vehicle in an
 21-6    accelerated vehicle retirement program established under Section
 21-7    382.209 commits an offense that is a third degree felony.
 21-8          (b)  Sale of a vehicle in an accelerated vehicle retirement
 21-9    program includes:
21-10                (1)  sale of the vehicle to retire the vehicle under
21-11    the program; and
21-12                (2)  sale of a vehicle purchased for retirement under
21-13    the program.
21-14          Sec. 382.215.  SALE OF VEHICLE NOT REQUIRED.  Nothing in this
21-15    subchapter may be construed to require a vehicle that has failed a
21-16    required emissions test to be sold or destroyed by the owner.
21-17          Sec. 382.216.  INCENTIVES FOR VOLUNTARY PARTICIPATION IN
21-18    VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM.  The
21-19    commission, the Texas Department of Transportation, and the Public
21-20    Safety Commission may, subject to federal limitations:
21-21                (1)  encourage counties likely to exceed federal clean
21-22    air standards to implement voluntary:
21-23                      (A)  motor vehicle emissions inspection and
21-24    maintenance programs; and
21-25                      (B)  low-income vehicle repair assistance,
21-26    retrofit, and accelerated vehicle retirement programs;
21-27                (2)  establish incentives for counties to voluntarily
 22-1    implement motor vehicle emissions inspection and maintenance
 22-2    programs and low-income vehicle repair assistance, retrofit, and
 22-3    accelerated vehicle retirement programs; and
 22-4                (3)  designate a county that voluntarily implements a
 22-5    motor vehicle emissions inspection and maintenance program or a
 22-6    low-income vehicle repair assistance, retrofit, and accelerated
 22-7    vehicle retirement program as a "Clean Air County" and give
 22-8    preference to  a county designated as a Clean Air County in any
 22-9    federal or state clean air grant program.
22-10          SECTION 2.  Section 382.0622(a), Health and Safety Code, is
22-11    amended to read as follows:
22-12          (a)  Clean Air Act fees consist of:
22-13                (1)  fees collected by the commission under Sections
22-14    382.062, 382.0621, and 382.202 [382.037] and as otherwise provided
22-15    by law; and
22-16                (2)  $2 of each advance payment collected by the
22-17    Department of Public Safety for inspection certificates for
22-18    vehicles other than mopeds under Section 548.501, Transportation
22-19    Code.
22-20          SECTION 3.  Subchapter B, Chapter 501, Transportation Code,
22-21    is amended by adding Section 501.0276 to read as follows:
22-22          Sec. 501.0276.  DENIAL OF TITLE RECEIPT OR CERTIFICATE OF
22-23    TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS TESTING.  A county
22-24    assessor-collector may not issue a title receipt and the commission
22-25    may not issue a certificate of title for a vehicle subject to
22-26    Section 548.3011 unless proof that the vehicle has passed a vehicle
22-27    emissions test as required by that section, in a form authorized by
 23-1    that section, is presented to the county assessor-collector with
 23-2    the application for certificate of title.
 23-3          SECTION 4.  Section 502.009(a), Transportation Code, is
 23-4    amended to read as follows:
 23-5          (a)  The Department of Public Safety shall ensure compliance
 23-6    with the motor vehicle emissions inspection and maintenance program
 23-7    through a vehicle inspection sticker-based enforcement system
 23-8    except as provided by this section or Section 548.3011.
 23-9    Subsections (b)-(e) apply only if the United States Environmental
23-10    Protection Agency determines that the state has not demonstrated,
23-11    as required by 40 C.F.R. Section 51.361, that sticker-based
23-12    enforcement of the program is more effective than
23-13    registration-based enforcement and gives the Texas Natural Resource
23-14    Conservation Commission or the governor written notification that
23-15    the reregistration-based enforcement of the program, as described
23-16    by those subsections, will be required.  If Subsections (b)-(e) are
23-17    made applicable as provided by this subsection, the department
23-18    shall terminate reregistration-based enforcement of the program
23-19    under those subsections on the date the United States Environmental
23-20    Protection Agency gives the Texas Natural Resource Conservation
23-21    Commission or a person the commission designates written
23-22    notification that reregistration-based enforcement is not required
23-23    for the state implementation plan.
23-24          SECTION 5.  Subchapter  D, Chapter 502, Transportation Code,
23-25    is amended by adding Section 502.1535 to read as follows:
23-26          Sec. 502.1535.  EVIDENCE OF VEHICLE EMISSIONS INSPECTION.   A
23-27    county assessor-collector may not register a motor vehicle subject
 24-1    to Section 548.3011 unless proof that the vehicle has passed a
 24-2    vehicle emissions test as required by that section, in a form
 24-3    authorized by that section, is presented to the county
 24-4    assessor-collector with the application for registration.
 24-5          SECTION 6. Section 547.605, Transportation Code, is amended
 24-6    by adding Subsections (d) and (e) to read as follows:
 24-7          (d)  Except when travel conditions require the downshifting
 24-8    or use of lower gears to maintain reasonable momentum, a person
 24-9    commits an offense if the person operates, or as an owner knowingly
24-10    permits another person to operate, a vehicle that emits:
24-11                (1)  visible smoke for 10 seconds or longer; or
24-12                (2)  visible smoke that remains suspended in the air
24-13    for 10 seconds or longer before fully dissipating.
24-14          (e)  An offense under this section is a misdemeanor
24-15    punishable by a fine of not less than $1 and not more than $350 for
24-16    each violation.  If a person has previously been convicted of an
24-17    offense under this section, an offense under this section is a
24-18    misdemeanor punishable by a fine of not less than $200 and not more
24-19    than $1,000 for each violation.
24-20          SECTION 7.  Section 548.301(c), Transportation Code, is
24-21    amended to read as follows:
24-22          (c)  A program established under Subsection (b) may [not]
24-23    include reregistration-based enforcement [unless the county by
24-24    resolution requests reregistration-based enforcement].
24-25          SECTION 8.  Subchapter F, Chapter 548, Transportation Code,
24-26    is amended by adding Sections 548.3011 and 548.3012 to read as
24-27    follows:
 25-1          Sec. 548.3011.  EMISSIONS TEST ON RESALE.  (a)  This section
 25-2    applies only to a vehicle:
 25-3                (1)  the most recent certificate of title for which or
 25-4    registration of which was issued in a county without a motor
 25-5    vehicle emissions inspection and maintenance program; and
 25-6                (2)  the ownership of which has changed and which has
 25-7    been the subject of a retail sale as defined by Section 1.03, Texas
 25-8    Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
 25-9    Civil Statutes).
25-10          (b)  A vehicle subject to this section is not eligible for a
25-11    title receipt under Section 501.024, a certificate of title under
25-12    Section 501.027, or registration under Chapter 502 in a county with
25-13    a motor vehicle emissions inspection and maintenance program unless
25-14    proof is presented with the application for certificate of title or
25-15    registration, as appropriate, that the vehicle, not earlier than
25-16    the 90th day before the date on which the new owner's application
25-17    for certificate of title or registration is filed with the county
25-18    clerk or county  assessor-collector, as appropriate, has passed an
25-19    approved vehicle emissions test in the county in which it is to be
25-20    titled or registered.
25-21          (c)  The proof required by Subsection (b) may be in the form
25-22    of a Vehicle Inspection Report (VIR) or other proof of program
25-23    compliance as authorized by the department.
25-24          Sec. 548.3012.  EXEMPTION:  VEHICLE NOT USED PRIMARILY IN
25-25    COUNTY OF REGISTRATION.  (a)  This section applies only to a
25-26    vehicle that:
25-27                (1)  is to be registered in a county with a motor
 26-1    vehicle emissions inspection and maintenance program; and
 26-2                (2)  will be used in that county for fewer than 60 days
 26-3    during the registration period for which registration is sought.
 26-4          (b)  The owner of a vehicle described by Subsection (a) may
 26-5    obtain for that vehicle an exemption from the vehicle emissions
 26-6    test requirements of this subchapter by submitting to the county
 26-7    assessor-collector an affidavit stating that the named vehicle will
 26-8    be used in the county of registration for fewer than 60 calendar
 26-9    days during the registration period for which registration is
26-10    sought.
26-11          SECTION 9. Section 548.306, Transportation Code, is amended
26-12    to read as follows:
26-13          Sec. 548.306.  EXCESSIVE MOTOR VEHICLE EMISSIONS. (a)  This
26-14    section applies to a motor vehicle registered or operated for more
26-15    than 60 days per calendar year in:
26-16                (1)  a county or a portion of a county designated by
26-17    department rule in accordance with Section 548.301; or
26-18                (2)  a county adjacent to a county described in
26-19    Subdivision (1) [standards provided by the United States
26-20    Environmental Protection Agency; or]
26-21                [(2)  one of the following areas:]
26-22                      [(A)  the part of the Dallas/Fort Worth ozone
26-23    nonattainment area that consists of Collin, Dallas, Denton, and
26-24    Tarrant counties;]
26-25                      [(B)  the part of the El Paso ozone nonattainment
26-26    area that consists of El Paso County; or]
26-27                      [(C)  the part of the Houston/Galveston ozone
 27-1    nonattainment area that consists of Brazoria, Chambers, Fort Bend,
 27-2    Galveston, Harris, Liberty, Montgomery, and Waller counties].
 27-3          (b)  The registered owner of a motor vehicle commits an
 27-4    offense if the vehicle, in an area described by Subsection (a),
 27-5    emits:
 27-6                (1)  hydrocarbons, carbon monoxide, or nitrogen oxide
 27-7    in an amount that is excessive under United States Environmental
 27-8    Protection Agency standards or standards provided by department
 27-9    rule; or
27-10                (2)  another vehicle-related pollutant that is listed
27-11    by a department rule adopted to comply with Part A, National
27-12    Emission Standards Act (42 U.S.C. Sections 7602-7619), or rules of
27-13    the United States Environmental Protection Agency in an amount
27-14    identified as excessive under that rule[; or]
27-15                [(3)  visible smoke that remains suspended in the air
27-16    10 or more seconds before fully dissipating].
27-17          (c)  The department shall provide a notice of violation to
27-18    the registered owner of a vehicle that is detected violating
27-19    Subsection (b).  The notice of violation must be made by personal
27-20    delivery to the registered owner or by mailing the notice to the
27-21    registered owner at the last known address of the owner.  The
27-22    department shall include in the notice the date and location of the
27-23    violation detected and instructions for the registered owner
27-24    explaining how the owner must proceed to obtain and pass a
27-25    verification emissions inspection and to make any repair to the
27-26    vehicle necessary to pass the inspection and explaining any
27-27    extension or assistance that may be available to the owner for
 28-1    making any necessary repair.  Notice by mail is presumed delivered
 28-2    on the 10th day after the date the notice is deposited in the mail.
 28-3          (d)  [The department shall provide notice under Subsection
 28-4    (c) to the registered owner of a vehicle in violation of Subsection
 28-5    (b)(3) as soon as is practicable after the department receives
 28-6    notice that a peace officer in this state has issued the driver of
 28-7    the vehicle an informative citation for the violation. The
 28-8    department shall adopt rules governing the procedures for a peace
 28-9    officer or police department to provide notice of informative
28-10    citations issued for violations of Subsection (b)(3).  The rules
28-11    must include a requirement that, for each citation issued, the
28-12    peace officer or police department inform the department of the
28-13    date and location of the violation.]
28-14          [(e)  A peace officer who has probable cause to believe an
28-15    offense under Subsection (b)(3) has been committed may issue the
28-16    driver of the vehicle an informative citation that indicates that
28-17    an offense under Subsection (b)(3) may have been committed and that
28-18    explains that the registered owner of the vehicle may receive in
28-19    the mail a notice under Subsection (c).]
28-20          [(f)]  A registered owner of a vehicle commits an offense if:
28-21                (1)  notice is delivered to the owner under Subsection
28-22    (c); and
28-23                (2)  the owner fails to comply with any provision of
28-24    the notice before the 31st day after the date the notice is
28-25    delivered.
28-26          (e) [(g)]  An offense under this section is a misdemeanor
28-27    punishable by a fine of not less than $1 and not more than $350. If
 29-1    a person has previously been convicted of an offense under this
 29-2    section, an offense under this section is a misdemeanor punishable
 29-3    by a fine of not less than $200 and not more than $1,000.
 29-4          (f) [(h)]  It is an affirmative defense to an offense under
 29-5    this section that the registered owner of the vehicle, before the
 29-6    31st day after the date the owner receives a notice of violation:
 29-7                (1)  after a verification emissions inspection
 29-8    indicated that the vehicle did not comply with applicable emissions
 29-9    standards, repaired the vehicle as necessary and passed another
29-10    verification emissions inspection; and
29-11                (2)  has complied with rules of the department
29-12    concerning a violation under this section.
29-13          (g) [(i)]  The department may contract with a private person
29-14    to implement this section.  The person must comply with terms,
29-15    policies, rules, and procedures the department adopts to administer
29-16    this section.
29-17          (h) [(j)]  The Texas Department of Transportation may deny
29-18    reregistration of a vehicle if the registered owner of the vehicle
29-19    has received notification under Subsection (c) and the vehicle has
29-20    not passed a verification emissions inspection.
29-21          (i) [(k)]  A hearing for a citation issued under this section
29-22    shall be heard by a justice of the peace of any precinct in the
29-23    county in which the vehicle is registered.
29-24          (j) [(l)]  Enforcement of the remote sensing component of the
29-25    vehicle emissions inspection and maintenance program may not
29-26    involve any method of screening in which the registered owner of a
29-27    vehicle found to have allowable emissions by remote sensing
 30-1    technology is charged a fee.
 30-2          (k) [(m)]  The department by rule may require that a vehicle
 30-3    determined by on-road testing to have excessive emissions be
 30-4    assessed an on-road emissions testing fee not to exceed the
 30-5    emissions testing fee charged by a certified emissions testing
 30-6    facility.
 30-7          (l) [(n)]  The department by rule may establish procedures
 30-8    for reimbursing a fee for a verification test required by
 30-9    Subsection (c) if the owner demonstrates to the department's
30-10    satisfaction that:
30-11                (1)  the vehicle passed the verification emissions test
30-12    not later than the 30th day after the date the vehicle owner
30-13    received notice that the vehicle was detected as having excessive
30-14    emissions; and
30-15                (2)  the vehicle did not receive any repair,
30-16    modification, alteration, or additive to the fuel, fuel tank, fuel
30-17    delivery system, engine, exhaust system, or any attached emissions
30-18    control components that would have, or could have, caused the
30-19    vehicle to experience improved emissions performance [was not
30-20    repaired] between the date of detection and the date of the
30-21    verification emissions test.
30-22          SECTION 10. Subchapter F, Chapter 548, Transportation Code,
30-23    is amended by adding Section 548.3065 to read as follows:
30-24          Sec. 548.3065.  ADMINISTRATIVE PENALTY. (a)  In lieu of
30-25    criminal proceedings for a violation of Section 548.306, the
30-26    department may impose an administrative penalty against a person
30-27    who knowingly violates this chapter or a rule adopted by the
 31-1    commission under this chapter.
 31-2          (b)  The amount of the administrative penalty may not exceed
 31-3    $1,000 for each violation.  The aggregate penalty for multiple
 31-4    violations may not exceed $10,000.  Each day a violation continues
 31-5    or occurs is a separate violation for purposes of imposing a
 31-6    penalty.
 31-7          (c)  Except as otherwise provided by this section, the
 31-8    procedures for determining and administering an administrative
 31-9    penalty under this section against a person charged with violating
31-10    this chapter are the same as those prescribed by Section 643.251
31-11    for determining and administering an administrative penalty against
31-12    a motor carrier under that section.
31-13          (d)  An administrative penalty collected under this section
31-14    shall be deposited in a special account in the general revenue fund
31-15    and may be used only by the department.
31-16          SECTION 11.  (a)  The Texas Natural Resource Conservation
31-17    Commission shall seek a binding commitment from the United States
31-18    Environmental Protection Agency that any county that is not
31-19    required by law but voluntarily chooses to participate in a motor
31-20    vehicle inspection and maintenance program under Subchapter F,
31-21    Chapter 548, Transportation Code, and a low-income vehicle repair
31-22    assistance, retrofit, and accelerated vehicle retirement program
31-23    authorized by Section 382.209, Health and Safety Code, as added by
31-24    this Act:
31-25                (1)  will receive recognition and credit for taking
31-26    voluntary steps to reduce air pollution if the county is later
31-27    determined to exceed federally established clean air standards; and
 32-1                (2)  will not be penalized for having voluntarily
 32-2    created programs to curb air pollution.
 32-3          (b)  The Texas Natural Resource Conservation Commission may
 32-4    request assistance from the Texas congressional delegation,
 32-5    counties interested in voluntarily participating in a program, or
 32-6    another state or federal agency in order to obtain a binding
 32-7    commitment under Subsection (a) of this section.
 32-8          SECTION 12.  (a)  The changes in law made by this Act apply
 32-9    only to an offense committed on or after the effective date of this
32-10    Act.  For purposes of this section, an offense is committed before
32-11    the effective date of this Act if any element of the offense occurs
32-12    before that date.
32-13          (b)  An offense committed before the effective date of this
32-14    Act is covered by the law in effect when the offense was committed,
32-15    and the former law is continued in effect for that purpose.
32-16          SECTION 13.  This Act takes effect immediately if it receives
32-17    a vote of two-thirds of all the members elected to each house, as
32-18    provided by Section 39, Article III, Texas Constitution.  If this
32-19    Act does not receive the vote necessary for immediate effect, this
32-20    Act takes effect September 1, 2001.