By Chisum                                             H.B. No. 2134
         77R6589 MI-F                           
                                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 and accelerated vehicle
1-24     retirement program authorized by Section 382.209.
 2-1                 (5)  "Vehicle" includes a fleet vehicle.
 2-2           Sec. 382.202 [382.037].  VEHICLE EMISSIONS INSPECTION AND
 2-3     MAINTENANCE PROGRAM.  (a)  The commission by resolution may request
 2-4     the Public Safety Commission to establish a vehicle emissions
 2-5     inspection and maintenance program under Subchapter F, Chapter 548,
 2-6     Transportation Code, in accordance with this section and rules
 2-7     adopted under this section.  The commission by rule may establish,
 2-8     implement, and administer a program requiring emissions-related
 2-9     inspections of motor vehicles to be performed at inspection
2-10     facilities consistent with the requirements of the federal Clean
2-11     Air Act (42 U.S.C. Section 7401 et seq.) and its subsequent
2-12     amendments.
2-13           (b)  The commission by rule may require emissions-related
2-14     inspection and maintenance of land vehicles, including testing
2-15     exhaust emissions, examining emission control devices and systems,
2-16     verifying compliance with applicable standards, and other
2-17     requirements as provided by federal law or regulation.
2-18           (c)  If the program is established under this section, the
2-19     commission:
2-20                 (1)  shall adopt vehicle emissions inspection and
2-21     maintenance requirements for certain areas as required by federal
2-22     law or regulation; and
2-23                 (2)  shall [may] adopt vehicle emissions inspection and
2-24     maintenance requirements for counties not subject to a specific
2-25     federal requirement in response to a formal request by resolutions
2-26     adopted by the county and the most populous municipality within the
2-27     county according to the most recent federal decennial census.
 3-1           (d)  On adoption of a resolution by the commission and after
 3-2     proper notice, the Department of Public Safety of the State of
 3-3     Texas shall implement a system that requires, as a condition of
 3-4     obtaining a safety inspection certificate issued under Subchapter
 3-5     C, Chapter 548, Transportation Code, in a county that is included
 3-6     in a vehicle emissions inspection and maintenance program under
 3-7     Subchapter F of that chapter, that the vehicle, unless the vehicle
 3-8     is not covered by the system, be annually or biennially inspected
 3-9     under the vehicle emissions inspection and maintenance program as
3-10     required by the state's air quality state implementation plan.  The
3-11     Department of Public Safety shall implement such a system when it
3-12     is required by any provision of federal or state law, including any
3-13     provision of the state's air quality state implementation plan.
3-14           (e)  The commission may assess fees for vehicle
3-15     emissions-related inspections performed at inspection or
3-16     reinspection facilities authorized and licensed by the commission
3-17     in amounts reasonably necessary to recover the costs of developing,
3-18     administering, evaluating, and enforcing the vehicle emissions
3-19     inspection and maintenance program.  If the program relies on
3-20     privately operated or contractor-operated inspection or
3-21     reinspection stations, an appropriate portion of the fee as
3-22     determined by commission rule may be retained by the station owner
3-23     or operator to recover the cost of performing the inspections and
3-24     provide for a reasonable margin of profit.  Any portion of the fee
3-25     collected by the commission is a Clean Air Act fee under Section
3-26     382.0622.
3-27           (f)  The commission shall:
 4-1                 (1)  use part of the fee collected under Subsection (e)
 4-2     to fund low-income and accelerated vehicle retirement programs
 4-3     created under Section 382.209; and
 4-4                 (2)  to the extent practicable, distribute available
 4-5     funding created under Subsection (e) to participating counties in
 4-6     reasonable proportion to the amount of fees collected under
 4-7     Subsection (e) in those counties or in the regions in which those
 4-8     counties are located.
 4-9           (g)  Regardless of whether different tests are used for
4-10     different vehicles as determined under Section 382.205, the
4-11     commission may:
4-12                 (1)  set fees assessed under Subsection (e) at the same
4-13     rate for each vehicle in a county or region; and
4-14                 (2)  set different fees for different counties or
4-15     regions.
4-16           (h)  The commission shall examine the efficacy of annually
4-17     inspecting diesel vehicles for compliance with applicable federal
4-18     emission standards, compliance with an opacity or other
4-19     emissions-related standard established by commission rule, or both
4-20     and shall implement that inspection program if the commission
4-21     determines the program would minimize emissions.  For purposes of
4-22     this subsection, a diesel engine not used in a vehicle registered
4-23     for use on public highways is not a diesel vehicle.
4-24           (i) [(g)]  The commission may not establish vehicle fuel
4-25     content standards to provide for vehicle fuel content for clean
4-26     motor vehicle fuels other than those standards promulgated by the
4-27     United States Environmental Protection Agency unless specifically
 5-1     authorized by the legislature or unless it is demonstrated to be
 5-2     necessary for the attainment of federal ozone ambient air quality
 5-3     standards or, following appropriate health studies and in
 5-4     consultation with the Texas Department of Health, it is determined
 5-5     to be necessary for the protection of public health.
 5-6           (j) [(k)]  The commission by rule may establish classes of
 5-7     vehicles that are exempt from vehicle emissions inspections and by
 5-8     rule may establish procedures to allow and review petitions for the
 5-9     exemption of individual vehicles, according to criteria established
5-10     by commission rule.  Rules adopted by the commission under this
5-11     subsection must be consistent with federal law.  The commission by
5-12     rule may establish fees to recover the costs of administering this
5-13     subsection.  Fees collected under this subsection shall be
5-14     deposited to the credit of the clean air account, an account in the
5-15     general revenue fund, and may be used only for the purposes of this
5-16     section.
5-17           (k) [(m)]  Except as provided by this subsection, a person
5-18     who sells or transfers ownership of a motor vehicle for which a
5-19     vehicle emissions inspection certificate has been issued is not
5-20     liable for the cost of emission control system repairs that are
5-21     required for the vehicle subsequently to receive an emissions
5-22     inspection certificate.  This subsection does not apply to repairs
5-23     that are required because emission control equipment or devices on
5-24     the vehicle were removed or tampered with before the sale or
5-25     transfer of the vehicle.
5-26           (l) [(n)]  The commission may conduct audits to determine
5-27     compliance with this section.
 6-1           Sec. 382.203 [382.0372].  VEHICLES SUBJECT TO PROGRAM;
 6-2     EXEMPTIONS.  (a)  The inspection and maintenance program applies to
 6-3     any gasoline-powered vehicle that is:
 6-4                 (1)  required to be registered in and is primarily
 6-5     operated in an affected county [Dallas, Tarrant, El Paso, or Harris
 6-6     County]; and
 6-7                 (2)  at least two and less than 25 years old; or
 6-8                 (3)  subject to test-on-resale requirements under
 6-9     Section 548.3011, Transportation Code.
6-10           (b)  In addition to a vehicle described by Subsection (a),
6-11     the program applies to:
6-12                 (1)  a vehicle with United States governmental plates
6-13     primarily operated in an affected county [Dallas, Tarrant, El Paso,
6-14     or Harris County];
6-15                 (2)  a vehicle operated on a federal facility in an
6-16     affected county [Dallas, Tarrant, El Paso, or Harris County]; and
6-17                 (3)  a vehicle primarily operated in an affected county
6-18     [Dallas, Tarrant, El Paso, or Harris County] that is exempt from
6-19     motor vehicle registration requirements or eligible under Chapter
6-20     502, Transportation Code, to display an "exempt" license plate.
6-21           (c)  The Department of Public Safety of the State of Texas by
6-22     rule may waive program requirements, in accordance with standards
6-23     adopted by the commission, for certain vehicles and vehicle owners,
6-24     including:
6-25                 (1)  the registered owner of a vehicle who[:]
6-26                       [(A)]  cannot afford to comply with the program,
6-27     based on reasonable income standards; [or]
 7-1                       [(B)  has spent a reasonable amount of money, set
 7-2     by the commission, to repair the vehicle, without bringing the
 7-3     vehicle into compliance with emissions standards; and]
 7-4                 (2)  a vehicle that cannot be brought into compliance
 7-5     with emissions standards by performing repairs;
 7-6                 (3)  a vehicle:
 7-7                       (A)  on which at least $100 has been spent to
 7-8     bring the vehicle into compliance; and
 7-9                       (B)  that the department:
7-10                             (i)  can verify was driven fewer than 5,000
7-11     miles since the last safety inspection; and
7-12                             (ii)  reasonably determines will be driven
7-13     fewer than 5,000 miles during the period before the next safety
7-14     inspection is required; and
7-15                 (4)  a vehicle for which parts are not readily
7-16     available.
7-17           (d)  The program does not apply to a:
7-18                 (1)  motorcycle;
7-19                 (2)  slow-moving vehicle as defined by Section 547.001,
7-20     Transportation Code; or
7-21                 (3)  vehicle that is registered but not operated
7-22     primarily in a county or group of counties subject to a motor
7-23     vehicle emissions inspection program established under Subchapter
7-24     F, Chapter 548, Transportation Code [circus vehicle].
7-25           Sec. 382.204 [382.0373].  REMOTE SENSING PROGRAM COMPONENT.
7-26     (a)  The commission and the Department of Public Safety of the
7-27     State of Texas jointly shall develop a program component for
 8-1     enforcing vehicle emissions testing and standards by use of remote
 8-2     or automatic emissions detection and analysis equipment.
 8-3           (b)  The program component may be employed in any county
 8-4     designated as a nonattainment area within the meaning of Section
 8-5     107(d) of the Clean Air Act (42 U.S.C. Section 7407) and its
 8-6     subsequent amendments, in any affected county, or in any county
 8-7     adjacent to an affected county.
 8-8           (c)  If a vehicle registered in a county adjacent to an
 8-9     affected county is detected under the program component authorized
8-10     by this section as operating and exceeding acceptable emissions
8-11     limitations in an affected county, the department shall provide
8-12     notice of the violation under Section 548.306, Transportation Code.
8-13           Sec. 382.205 [382.0374].  INSPECTION EQUIPMENT AND
8-14     PROCEDURES.  (a)  The commission by rule may adopt:
8-15                 (1)  standards and specifications for motor vehicle
8-16     emissions testing equipment;
8-17                 (2)  recordkeeping and reporting procedures; and
8-18                 (3)  measurable emissions standards a vehicle must meet
8-19     to pass the inspection.
8-20           (b)  In adopting standards and specifications under
8-21     Subsection (a), the commission may require different types of tests
8-22     for different vehicle models.
8-23           (c)  In consultation with the Department of Public Safety of
8-24     the State of Texas, the commission may contract with one or more
8-25     private entities to provide testing equipment to inspection
8-26     stations in exchange for part of the testing fee.  A contract under
8-27     this subsection may apply to one specified area of the state or to
 9-1     the entire state.
 9-2           (d)  The Department of Public Safety of the State of Texas by
 9-3     rule shall adopt:
 9-4                 (1)  testing procedures in accordance with motor
 9-5     vehicle emissions testing equipment specifications;  and
 9-6                 (2)  procedures for issuing or denying an emissions
 9-7     inspection certificate.
 9-8           (e) [(c)]  Subject to Subsection (f) [(d)], the commission
 9-9     and the Department of Public Safety of the State of Texas by rule
9-10     may allow alternative vehicle emissions testing[, including onboard
9-11     diagnostic testing,] if:
9-12                 (1)  the technology provides accurate and reliable
9-13     results;
9-14                 (2)  the technology is widely and readily available to
9-15     persons interested in performing alternative vehicle emissions
9-16     testing; and
9-17                 (3)  the use of alternative testing is not likely to
9-18     substantially affect federal approval of the state's air quality
9-19     state implementation plan.
9-20           (f) [(d)]  A rule adopted under Subsection (e) [(c)] may not
9-21     be more restrictive than federal regulations governing vehicle
9-22     emissions testing.
9-23           Sec. 382.206 [382.0375].  COLLECTION OF DATA; REPORT.  (a)
9-24     The commission and the Department of Public Safety of the State of
9-25     Texas may collect inspection and maintenance information derived
9-26     from the emissions inspection and maintenance program, including:
9-27                 (1)  inspection results;
 10-1                (2)  inspection station information;
 10-2                (3)  information regarding vehicles operated on federal
 10-3    facilities;
 10-4                (4)  vehicle registration information; and
 10-5                (5)  other data the United States Environmental
 10-6    Protection Agency requires.
 10-7          (b)  The commission shall:
 10-8                (1)  report the information to the United States
 10-9    Environmental Protection Agency; and
10-10                (2)  compare the information on inspection results with
10-11    registration information for enforcement purposes.
10-12          Sec. 382.207 [382.038].  INSPECTION STATIONS; QUALITY CONTROL
10-13    AUDITS.  (a)  The Department of Public Safety of the State of Texas
10-14    by rule shall adopt standards and procedures for establishing
10-15    vehicle emissions inspection stations authorized and licensed by
10-16    the state.
10-17          (b)  A vehicle emissions inspection may be performed at a
10-18    decentralized independent inspection station or at a centralized
10-19    inspection facility operated or licensed by the state.  In
10-20    developing the program for vehicle emissions inspections, the
10-21    Department of Public Safety shall make all reasonable efforts to
10-22    preserve the present decentralized system.
10-23          (c)  After consultation with the Texas Department of
10-24    Transportation, the commission shall require state and local
10-25    transportation planning entities designated by the commission to
10-26    prepare long-term projections of the combined impact of significant
10-27    planned transportation system changes on emissions and air quality.
 11-1    The projections shall be prepared using air pollution estimation
 11-2    methodologies established jointly by the commission and the Texas
 11-3    Department of Transportation.  This subsection does not restrict
 11-4    the Texas Department of Transportation's function as the
 11-5    transportation planning body for the state or its role in
 11-6    identifying and initiating specific transportation-related projects
 11-7    in the state.
 11-8          (d)  The Department of Public Safety may authorize
 11-9    enforcement personnel or other individuals to remove, disconnect,
11-10    adjust, or make inoperable vehicle emissions control equipment,
11-11    devices, or systems and to operate a vehicle in the tampered
11-12    condition in order to perform a quality control audit of an
11-13    inspection station or other quality control activities as necessary
11-14    to assess and ensure the effectiveness of the vehicle emissions
11-15    inspection and maintenance program.
11-16          (e)  The Department of Public Safety shall develop a
11-17    challenge station program to provide for the reinspection of a
11-18    motor vehicle at the option of the owner of the vehicle to ensure
11-19    quality control of a vehicle emissions inspection and maintenance
11-20    system.
11-21          (f)  The commission may contract with one or more private
11-22    entities to operate a program established under this section.
11-23          (g)  In addition to other procedures established by the
11-24    commission, the commission shall establish procedures by which a
11-25    private entity with whom the commission has entered into a contract
11-26    to operate a program established under this section may agree to
11-27    perform:
 12-1                (1)  testing at a fleet facility or dealership using
 12-2    mobile test equipment;
 12-3                (2)  testing at a fleet facility or dealership using
 12-4    test equipment owned by the fleet or dealership but calibrated and
 12-5    operated by the private entity's personnel; or
 12-6                (3)  testing at a fleet facility or dealership using
 12-7    test equipment owned and operated by the private entity and
 12-8    installed at the fleet or dealership facility.
 12-9          (h)  The fee for a test conducted as provided by Subsection
12-10    (g) shall be set by the commission in an amount not to exceed twice
12-11    the fee otherwise provided by law or by rule of the commission.  An
12-12    appropriate portion of the fee, as determined by the commission,
12-13    may be remitted by the private entity to the fleet facility or
12-14    dealership.
12-15          Sec. 382.208 [382.039].  ATTAINMENT PROGRAM.  (a)  The
12-16    commission shall coordinate with federal, state, and local
12-17    transportation planning agencies to develop and implement
12-18    transportation programs and other measures necessary to demonstrate
12-19    and maintain attainment of national ambient air quality standards
12-20    and to protect the public from exposure to hazardous air
12-21    contaminants from motor vehicles.
12-22          (b)  Participating agencies include the Texas Department of
12-23    Transportation and metropolitan planning organizations designated
12-24    by the governor.
12-25          Sec. 382.209.  LOW-INCOME VEHICLE REPAIR ASSISTANCE AND
12-26    ACCELERATED VEHICLE RETIREMENT PROGRAM.  (a)  The commission, the
12-27    Texas Department of Transportation, and the Public Safety
 13-1    Commission by joint rule shall establish and authorize the
 13-2    commissioners court of an affected county to implement a low-income
 13-3    vehicle repair assistance and accelerated vehicle retirement
 13-4    program subject to agency oversight that may include reasonable
 13-5    periodic commission audits.
 13-6          (b)  The commission shall provide funding for local
 13-7    low-income vehicle repair assistance and accelerated vehicle
 13-8    retirement programs with available funds collected under Section
 13-9    382.202 or other designated and available funds.  Not more than 10
13-10    percent of the money provided to a local low-income vehicle repair
13-11    assistance and accelerated vehicle retirement program under this
13-12    section may be used for administration of the programs.
13-13          (c)  The rules adopted under Subsection (a) must provide
13-14    procedures for ensuring that a program implemented under authority
13-15    of that subsection does not apply to a vehicle that is:
13-16                (1)  registered under Section 502.274 or 502.275,
13-17    Transportation Code; and
13-18                (2)  not regularly used for transportation during the
13-19    normal course of daily activities.
13-20          (d)  Subject to the availability of funds, a low-income
13-21    vehicle repair assistance and accelerated vehicle retirement
13-22    program established under this section shall provide monetary or
13-23    other compensatory assistance for:
13-24                (1)  repairs directly related to bringing certain
13-25    vehicles that have failed a required emissions test into compliance
13-26    with emissions requirements; and
13-27                (2)  a replacement vehicle or replacement assistance
 14-1    for a vehicle that has failed a required emissions test and for
 14-2    which the cost of repairs needed to bring the vehicle into
 14-3    compliance is uneconomical.
 14-4          (e)  A vehicle is not eligible to participate in a low-income
 14-5    vehicle repair assistance and accelerated vehicle retirement
 14-6    program established under this section unless:
 14-7                (1)  the registration of the vehicle:
 14-8                      (A)  is current; and
 14-9                      (B)  reflects that the vehicle has been
14-10    registered in the county implementing the program for the two years
14-11    preceding the application for participation in the program;
14-12                (2)  the commissioners court of the county
14-13    administering the program determines that the vehicle meets the
14-14    eligibility criteria adopted by the commission, the Texas
14-15    Department of Transportation, and the Public Safety Commission; and
14-16                (3)  if the vehicle is to be repaired, the repair is
14-17    done by a repair facility recognized by the Department of Public
14-18    Safety.
14-19          (f)  A fleet vehicle, a vehicle owned or leased by a
14-20    governmental entity, or a commercial vehicle is not eligible to
14-21    participate in a low-income vehicle repair assistance and
14-22    accelerated vehicle retirement program established and implemented
14-23    under this section.
14-24          (g)  A participating county may contract with any appropriate
14-25    entity or with another county for services necessary to implement
14-26    the participating county's low-income vehicle repair assistance and
14-27    accelerated vehicle retirement program.
 15-1          (h)  Participation by an affected county in a low-income
 15-2    vehicle repair assistance and accelerated vehicle retirement
 15-3    program is not mandatory.  To the extent allowed by federal law,
 15-4    any emissions reductions attributable to a low-income vehicle
 15-5    repair assistance and accelerated vehicle retirement program in a
 15-6    county that are attained during a period before the county is
 15-7    designated as a nonattainment county shall be considered emissions
 15-8    reductions credit if the county is later determined to be a
 15-9    nonattainment county.
15-10          Sec. 382.210.  IMPLEMENTATION GUIDELINES.  The commission by
15-11    rule shall adopt guidelines to assist a participating county in
15-12    implementing a low-income vehicle repair assistance and accelerated
15-13    vehicle retirement program authorized under Section  382.209.  The
15-14    guidelines at a minimum shall recommend:
15-15                (1)  a minimum and maximum amount for repair
15-16    assistance;
15-17                (2)  a minimum and maximum amount toward the purchase
15-18    price of a replacement vehicle qualified for the accelerated
15-19    retirement program;
15-20                (3)  criteria for determining eligibility, taking into
15-21    account:
15-22                      (A)  the vehicle owner's income;
15-23                      (B)  the fair market value of the vehicle; and
15-24                      (C)  any other relevant considerations;
15-25                (4)  safeguards for preventing fraud in the repair,
15-26    purchase, or sale of a vehicle in the program; and
15-27                (5)  procedures for determining the degree and amount
 16-1    of repair assistance a vehicle is allowed, based on:
 16-2                      (A)  the amount of money the vehicle owner has
 16-3    spent on repairs;
 16-4                      (B)  the vehicle owner's income; and
 16-5                      (C)  any other relevant factors.
 16-6          Sec. 382.211.  LOCAL ADVISORY PANEL.  (a)  The commissioners
 16-7    court of a participating county may appoint one or more local
 16-8    advisory panels consisting of representatives of automobile
 16-9    dealerships, the automotive repair industry, safety inspection
16-10    facilities, the public, antique and vintage car clubs, local
16-11    nonprofit organizations, and locally affected governments to advise
16-12    the county regarding the operation of the county's low-income
16-13    vehicle repair assistance and accelerated vehicle retirement
16-14    program, including the identification of a vehicle make or model
16-15    with intrinsic value as an existing or future collectible.
16-16          (b)  The commissioners court may delegate all or part of the
16-17    administrative and financial matters to one or more local advisory
16-18    panels established under Subsection (a).
16-19          Sec. 382.212.  EMISSIONS REDUCTION CREDIT.  (a)  In this
16-20    section, "emissions reduction credit" means an emissions reduction
16-21    certified by the commission that is:
16-22                (1)  created by eliminating future emissions,
16-23    quantified during or before the period in which emissions
16-24    reductions are made;
16-25                (2)  expressed in tons or partial tons per year; and
16-26                (3)  banked by the commission in accordance with
16-27    commission rules relating to emissions banking.
 17-1          (b)  To the extent allowable under federal law, the
 17-2    commission by rule shall authorize:
 17-3                (1)  the assignment of a percentage of emissions
 17-4    reduction credit to a private, commercial, or business entity that
 17-5    purchases, for accelerated retirement, a qualified vehicle under a
 17-6    low-income vehicle repair assistance and accelerated vehicle
 17-7    retirement program;
 17-8                (2)  the transferability of an assigned emissions
 17-9    reduction credit;
17-10                (3)  the use of emissions reduction credit by the
17-11    holder of the credit against any state or federal emissions
17-12    requirements applicable to a facility owned or operated by the
17-13    holder of the credit;
17-14                (4)  the assignment of a percentage of emissions
17-15    reduction credit, on the retirement of a fleet vehicle, a vehicle
17-16    owned or leased by a governmental entity, or a commercial vehicle,
17-17    to the owner or lessor of the vehicle; and
17-18                (5)  other actions relating to the disposition or use
17-19    of emissions reduction credit that the commission determines will
17-20    benefit the implementation of low-income vehicle repair assistance
17-21    and accelerated vehicle retirement programs established under
17-22    Section 382.209.
17-23          Sec. 382.213.  DISPOSITION OF RETIRED VEHICLE.  (a)  Except
17-24    as provided by Subsection (c) and Subdivision (5) of this
17-25    subsection, a vehicle retired under an accelerated vehicle
17-26    retirement program authorized by Section 382.209 may not be resold
17-27    or reused in its entirety in this or another state.  The vehicle
 18-1    must be:
 18-2                (1)  destroyed;
 18-3                (2)  recycled;
 18-4                (3)  dismantled and its parts sold as used parts or
 18-5    used in the program;
 18-6                (4)  placed in a storage facility of a program
 18-7    established under Section 382.209 and subsequently destroyed,
 18-8    recycled, or dismantled and its parts sold or used in the program;
 18-9    or
18-10                (5)  repaired, brought into compliance, and used as a
18-11    replacement vehicle under Section 382.209(d)(2).
18-12          (b)  Not more than 10 percent of all vehicles eligible for
18-13    retirement under this section may be used as replacement vehicles
18-14    under Subsection (a)(5).
18-15          (c)  A vehicle identified by a local advisory panel as an
18-16    existing or future collectible vehicle under Section 382.211 may be
18-17    sold to an individual if the vehicle:
18-18                (1)  is removed from the state;
18-19                (2)  is removed from an affected county; or
18-20                (3)  is stored for future restoration and cannot be
18-21    registered in an affected county except under Section 502.274 or
18-22    502.275, Transportation Code.
18-23          Sec. 382.214.  SALE OF VEHICLE WITH INTENT TO DEFRAUD.  (a)
18-24    A person who with intent to defraud sells a vehicle in an
18-25    accelerated vehicle retirement program established under Section
18-26    382.209 commits an offense that is a third-degree felony.
18-27          (b)  Sale of a vehicle in an accelerated vehicle retirement
 19-1    program includes:
 19-2                (1)  sale of the vehicle to retire the vehicle under
 19-3    the program; and
 19-4                (2)  sale of a vehicle purchased for retirement under
 19-5    the program.
 19-6          Sec. 382.215.  SALE OF VEHICLE NOT REQUIRED.  Nothing in this
 19-7    subchapter may be construed to require a vehicle that has failed a
 19-8    required emissions test to be sold or destroyed by the owner.
 19-9          Sec. 382.216.  INCENTIVES FOR VOLUNTARY PARTICIPATION IN
19-10    VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM.  The
19-11    commission, the Texas Department of Transportation, and the Public
19-12    Safety Commission may, subject to federal limitations:
19-13                (1)  encourage counties likely to exceed federal clean
19-14    air standards to implement voluntary:
19-15                      (A)  motor vehicle emissions inspection and
19-16    maintenance programs; and
19-17                      (B)  low-income vehicle repair assistance and
19-18    accelerated vehicle retirement programs;
19-19                (2)  establish incentives for counties to voluntarily
19-20    implement motor vehicle emissions inspection and maintenance
19-21    programs and low-income vehicle repair and accelerated vehicle
19-22    retirement programs; and
19-23                (3)  designate a county that voluntarily implements a
19-24    motor vehicle emissions inspection and maintenance program or a
19-25    low-income vehicle repair assistance and accelerated vehicle
19-26    retirement program as a "Clean Air County" and give preference to
19-27    a county designated as a Clean Air County in any federal or state
 20-1    clean air grant program.
 20-2          SECTION 2.  Section 382.0622(a), Transportation Code, is
 20-3    amended to read as follows:
 20-4          (a)  Clean Air Act fees consist of:
 20-5                (1)  fees collected by the commission under Sections
 20-6    382.062, 382.0621, and 382.202 [382.037] and as otherwise provided
 20-7    by law; and
 20-8                (2)  $2 of each advance payment collected by the
 20-9    Department of Public Safety for inspection certificates for
20-10    vehicles other than mopeds under Section 548.501, Transportation
20-11    Code.
20-12          SECTION 3.  Subchapter B, Chapter 501, Transportation Code,
20-13    is amended by adding Section 501.0276 to read as follows:
20-14          Sec. 501.0276.  DENIAL OF TITLE RECEIPT OR CERTIFICATE OF
20-15    TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS TESTING.  A county
20-16    clerk may not issue a title receipt and the commission may not
20-17    issue a certificate of title for a vehicle subject to Section
20-18    548.3011 unless proof that the vehicle has passed a vehicle
20-19    emissions test as required by that section, in a form authorized by
20-20    that section, is presented to the county clerk with the application
20-21    for certificate of title.
20-22          SECTION 4.  Section 502.009(a), Transportation Code, is
20-23    amended to read as follows:
20-24          (a)  The Department of Public Safety shall ensure compliance
20-25    with the motor vehicle emissions inspection and maintenance program
20-26    through a vehicle inspection sticker-based enforcement system
20-27    except as provided by this section or Section 548.3011.
 21-1    Subsections (b)-(e) apply only if the United States Environmental
 21-2    Protection Agency determines that the state has not demonstrated,
 21-3    as required by 40 C.F.R. Section 51.361, that sticker-based
 21-4    enforcement of the program is more effective than
 21-5    registration-based enforcement and gives the Texas Natural Resource
 21-6    Conservation Commission or the governor written notification that
 21-7    the reregistration-based enforcement of the program, as described
 21-8    by those subsections, will be required.  If Subsections (b)-(e) are
 21-9    made applicable as provided by this subsection, the department
21-10    shall terminate reregistration-based enforcement of the program
21-11    under those subsections on the date the United States Environmental
21-12    Protection Agency gives the Texas Natural Resource Conservation
21-13    Commission or a person the commission designates written
21-14    notification that reregistration-based enforcement is not required
21-15    for the state implementation plan.
21-16          SECTION 5.  Subchapter  D, Chapter 502, Transportation Code,
21-17    is amended by adding Section 502.1535 to read as follows:
21-18          Sec. 502.1535.  EVIDENCE OF VEHICLE EMISSIONS INSPECTION.   A
21-19    county assessor-collector may not register a motor vehicle subject
21-20    to Section 548.3011 unless proof that the vehicle has passed a
21-21    vehicle emissions test as required by that section, in a form
21-22    authorized by that section, is presented to the county
21-23    assessor-collector with the application for registration.
21-24          SECTION 6. Section 547.605, Transportation Code, is amended
21-25    by adding Subsections (d) and (e) to read as follows:
21-26          (d)  A person commits an offense if the person operates, or
21-27    as an owner knowingly permits another person to operate, a vehicle
 22-1    that emits:
 22-2                (1)  visible smoke for 10 seconds or longer; or
 22-3                (2)  visible smoke that remains suspended in the air
 22-4    for 10 seconds or longer before fully dissipating.
 22-5          (e)  An offense under this section is a misdemeanor
 22-6    punishable by a fine of not less than $1 and not more than $350 for
 22-7    each violation.  If a person has previously been convicted of an
 22-8    offense under this section, an offense under this section is a
 22-9    misdemeanor punishable by a fine of not less than $200 and not more
22-10    than $1,000 for each violation.
22-11          SECTION 7.  Section 548.301(c), Transportation Code, is
22-12    amended to read as follows:
22-13          (c)  A program established under Subsection (b) may [not]
22-14    include reregistration-based enforcement [unless the county by
22-15    resolution requests reregistration-based enforcement].
22-16          SECTION 8.  Subchapter F, Chapter 548, Transportation Code,
22-17    is amended by adding Sections 548.3011 and 548.3012 to read as
22-18    follows:
22-19          Sec. 548.3011.  EMISSIONS TEST ON RESALE.  (a)  This section
22-20    applies only to a vehicle:
22-21                (1)  the most recent certificate of title for which or
22-22    registration of which was issued in a county without a motor
22-23    vehicle emissions inspection and maintenance program; and
22-24                (2)  the ownership of which has changed.
22-25          (b)   A vehicle subject to this section is not eligible for a
22-26    title receipt under Section 501.024, a certificate of title under
22-27    Section 501.027, or registration under Chapter 502 in a county
 23-1    with a motor vehicle emissions inspection and maintenance program
 23-2    unless proof is presented with the application for certificate of
 23-3    title or registration, as appropriate, that the vehicle, not
 23-4    earlier than the 90th day before the date on which the new owner's
 23-5    application for certificate of title or registration is filed with
 23-6    the county clerk or county  assessor-collector, as appropriate, has
 23-7    passed an approved vehicle emissions test in the county in which it
 23-8    is to be titled or registered.
 23-9          (c)  The proof required by Subsection (b) may be in the form
23-10    of a Vehicle Inspection Report (VIR) or other proof of program
23-11    compliance as authorized by the department.
23-12          Sec. 548.3012.  EXEMPTION:  VEHICLE NOT USED PRIMARILY IN
23-13    COUNTY OF REGISTRATION.  (a)  This section applies only to a
23-14    vehicle that:
23-15                (1)  is to be registered in a county with a motor
23-16    vehicle emissions inspection and maintenance program; and
23-17                (2)  will be used in that county for fewer than 60 days
23-18    during the registration period for which registration is sought.
23-19          (b)  The owner of a vehicle described by Subsection (a) may
23-20    obtain for that vehicle an exemption from the vehicle emissions
23-21    test requirements of this subchapter by submitting to the county
23-22    assessor-collector an affidavit stating that the named vehicle will
23-23    be used in the county of registration for fewer than 60 calendar
23-24    days during the registration period for which registration is
23-25    sought.
23-26          SECTION 9. Section 548.306, Transportation Code, is amended
23-27    to read as follows:
 24-1          Sec. 548.306.  EXCESSIVE MOTOR VEHICLE EMISSIONS. (a)  This
 24-2    section applies to a motor vehicle registered or operated for more
 24-3    than 60 days per calendar year in:
 24-4                (1)  a county or a portion of a county designated by
 24-5    department rule in accordance with Section 548.301; or
 24-6                (2)  a county adjacent to a county described in
 24-7    Subdivision (1) [standards provided by the United States
 24-8    Environmental Protection Agency; or]
 24-9                [(2)  one of the following areas:]
24-10                      [(A)  the part of the Dallas/Fort Worth ozone
24-11    nonattainment area that consists of Collin, Dallas, Denton, and
24-12    Tarrant counties;]
24-13                      [(B)  the part of the El Paso ozone nonattainment
24-14    area that consists of El Paso County; or]
24-15                      [(C)  the part of the Houston/Galveston ozone
24-16    nonattainment area that consists of Brazoria, Chambers, Fort Bend,
24-17    Galveston, Harris, Liberty, Montgomery, and Waller counties].
24-18          (b)  The registered owner of a motor vehicle commits an
24-19    offense if the vehicle, in an area described by Subsection (a),
24-20    emits:
24-21                (1)  hydrocarbons, carbon monoxide, or nitrogen oxide
24-22    in an amount that is excessive under United States Environmental
24-23    Protection Agency standards or standards provided by department
24-24    rule; or
24-25                (2)  another vehicle-related pollutant that is listed
24-26    by a department rule adopted to comply with Part A, National
24-27    Emission Standards Act (42 U.S.C. Sections 7602-7619), or rules of
 25-1    the United States Environmental Protection Agency in an amount
 25-2    identified as excessive under that rule[; or]
 25-3                [(3)  visible smoke that remains suspended in the air
 25-4    10 or more seconds before fully dissipating].
 25-5          (c)  The department shall provide a notice of violation to
 25-6    the registered owner of a vehicle that is detected violating
 25-7    Subsection (b).  The notice of violation must be made by personal
 25-8    delivery to the registered owner or by mailing the notice to the
 25-9    registered owner at the last known address of the owner.  The
25-10    department shall include in the notice the date and location of the
25-11    violation detected and instructions for the registered owner
25-12    explaining how the owner must proceed to obtain and pass a
25-13    verification emissions inspection and to make any repair to the
25-14    vehicle necessary to pass the inspection and explaining any
25-15    extension or assistance that may be available to the owner for
25-16    making any necessary repair.  Notice by mail is presumed delivered
25-17    on the 10th day after the date the notice is deposited in the mail.
25-18          (d)  [The department shall provide notice under Subsection
25-19    (c) to the registered owner of a vehicle in violation of Subsection
25-20    (b)(3) as soon as is practicable after the department receives
25-21    notice that a peace officer in this state has issued the driver of
25-22    the vehicle an informative citation for the violation. The
25-23    department shall adopt rules governing the procedures for a peace
25-24    officer or police department to provide notice of informative
25-25    citations issued for violations of Subsection (b)(3).  The rules
25-26    must include a requirement that, for each citation issued, the
25-27    peace officer or police department inform the department of the
 26-1    date and location of the violation.]
 26-2          [(e)  A peace officer who has probable cause to believe an
 26-3    offense under Subsection (b)(3) has been committed may issue the
 26-4    driver of the vehicle an informative citation that indicates that
 26-5    an offense under Subsection (b)(3) may have been committed and that
 26-6    explains that the registered owner of the vehicle may receive in
 26-7    the mail a notice under Subsection (c).]
 26-8          [(f)]  A registered owner of a vehicle commits an offense if:
 26-9                (1)  notice is delivered to the owner under Subsection
26-10    (c); and
26-11                (2)  the owner fails to comply with any provision of
26-12    the notice before the 31st day after the date the notice is
26-13    delivered.
26-14          (e) [(g)]  An offense under this section is a misdemeanor
26-15    punishable by a fine of not less than $1 and not more than $350. If
26-16    a person has previously been convicted of an offense under this
26-17    section, an offense under this section is a misdemeanor punishable
26-18    by a fine of not less than $200 and not more than $1,000.
26-19          (f) [(h)]  It is an affirmative defense to an offense under
26-20    this section that the registered owner of the vehicle, before the
26-21    31st day after the date the owner receives a notice of violation:
26-22                (1)  after a verification emissions inspection
26-23    indicated that the vehicle did not comply with applicable emissions
26-24    standards, repaired the vehicle as necessary and passed another
26-25    verification emissions inspection; and
26-26                (2)  has complied with rules of the department
26-27    concerning a violation under this section.
 27-1          (g) [(i)]  The department may contract with a private person
 27-2    to implement this section.  The person must comply with terms,
 27-3    policies, rules, and procedures the department adopts to administer
 27-4    this section.
 27-5          (h) [(j)]  The Texas Department of Transportation may deny
 27-6    reregistration of a vehicle if the registered owner of the vehicle
 27-7    has received notification under Subsection (c) and the vehicle has
 27-8    not passed a verification emissions inspection.
 27-9          (i) [(k)]  A hearing for a citation issued under this section
27-10    shall be heard by a justice of the peace of any precinct in the
27-11    county in which the vehicle is registered.
27-12          (j) [(l)]  Enforcement of the remote sensing component of the
27-13    vehicle emissions inspection and maintenance program may not
27-14    involve any method of screening in which the registered owner of a
27-15    vehicle found to have allowable emissions by remote sensing
27-16    technology is charged a fee.
27-17          (k) [(m)]  The department by rule may require that a vehicle
27-18    determined by on-road testing to have excessive emissions be
27-19    assessed an on-road emissions testing fee not to exceed the
27-20    emissions testing fee charged by a certified emissions testing
27-21    facility.
27-22          (l) [(n)]  The department by rule may establish procedures
27-23    for reimbursing a fee for a verification test required by
27-24    Subsection (c) if the owner demonstrates to the department's
27-25    satisfaction that:
27-26                (1)  the vehicle passed the verification emissions test
27-27    not later than the 30th day after the date the vehicle owner
 28-1    received notice that the vehicle was detected as having excessive
 28-2    emissions; and
 28-3                (2)  the vehicle did not receive any repair,
 28-4    modification, alteration, or additive to the fuel, fuel tank, fuel
 28-5    delivery system, engine, exhaust system, or any attached emissions
 28-6    control components that would have, or could have, caused the
 28-7    vehicle to experience improved emissions performance [was not
 28-8    repaired] between the date of detection and the date of the
 28-9    verification emissions test.
28-10          SECTION 10. Subchapter F, Chapter 548, Transportation Code,
28-11    is amended by adding Section 548.3065 to read as follows:
28-12          Sec. 548.3065.  ADMINISTRATIVE PENALTY. (a)  In lieu of
28-13    criminal proceedings for a violation of Section 548.306, the
28-14    department may impose an administrative penalty against a person
28-15    who knowingly violates this chapter or a rule adopted by the
28-16    commission under this chapter.
28-17          (b)  The amount of the administrative penalty may not exceed
28-18    $1,000 for each violation.  The aggregate penalty for multiple
28-19    violations may not exceed $10,000.  Each day a violation continues
28-20    or occurs is a separate violation for purposes of imposing a
28-21    penalty.
28-22          (c)  Except as otherwise provided by this section, the
28-23    procedures for determining and administering an administrative
28-24    penalty under this section against a person charged with violating
28-25    this chapter are the same as those prescribed by Section 643.251
28-26    for determining and administering an administrative penalty against
28-27    a motor carrier under that section.
 29-1          (d)  An administrative penalty collected under this section
 29-2    shall be deposited in a special account in the general revenue fund
 29-3    and may be used only by the department.
 29-4          SECTION 11.  (a)  The Texas Natural Resource Conservation
 29-5    Commission shall seek a binding commitment from the United States
 29-6    Environmental Protection Agency that any county that is not
 29-7    required by law but voluntarily chooses to participate in a motor
 29-8    vehicle inspection and maintenance program under Subchapter F,
 29-9    Chapter 548, Transportation Code, and a low-income vehicle repair
29-10    assistance and accelerated vehicle retirement program authorized by
29-11    Section 382.209, Health and Safety Code, as added by this Act:
29-12                (1)  will receive recognition and credit for taking
29-13    voluntary steps to reduce air pollution if the county is later
29-14    determined to exceed federally established clean air standards; and
29-15                (2)  will not be penalized for having voluntarily
29-16    created programs to curb air pollution.
29-17          (b)  The Texas Natural Resource Conservation Commission may
29-18    request assistance from the Texas congressional delegation,
29-19    counties interested in voluntarily participating in a program, or
29-20    another state or federal agency in order to obtain a binding
29-21    commitment under Subsection (a) of this section.
29-22          SECTION 12.  (a)  The changes in law made by this Act apply
29-23    only to an offense committed on or after the effective date of this
29-24    Act.  For purposes of this section, an offense is committed before
29-25    the effective date of this Act if any element of the offense occurs
29-26    before that date.
29-27          (b)  An offense committed before the effective date of this
 30-1    Act is covered by the law in effect when the offense was committed,
 30-2    and the former law is continued in effect for that purpose.
 30-3          SECTION 13.  This Act takes effect immediately if it receives
 30-4    a vote of two-thirds of all the members elected to each house, as
 30-5    provided by Section 39, Article III, Texas Constitution.  If this
 30-6    Act does not receive the vote necessary for immediate effect, this
 30-7    Act takes effect September 1, 2001.