Amend CSHB 3588 by adding a new Section ____ to read as 
follows:           
	SECTION ____.  The Transportation Code is amended by adding 
a new Subchapter D to Chapter 551 to read as follows:

SUBCHAPTER D.  NEIGHBORHOOD ELECTRIC VEHICLES.
	Sec. 551.301.  DEFINITION.  In this subchapter, 
"neighborhood electric vehicle" means a vehicle subject to Federal 
Motor Vehicle Standard 500 (49 C.F.R. Section 571.500).
	Sec. 551.302.  OPERATION ON ROADWAY.  (a)  A neighborhood 
electric vehicle may be operated only on a street or highway for 
which the posted speed limit is 35 miles per hour or less.  The 
vehicle may cross a road or street at an intersection where the road 
or street has posted speed limit of more than 35 miles per hour.
	(b)  A county or municipality may prohibit the operation of a 
neighborhood electric vehicle on any street or highway if the 
governing body of the county or municipality determines that the 
prohibition is necessary in the interest of safety.
	(c)  The department may prohibit the operation of a 
neighborhood electric vehicle on a highway if it determines that 
the prohibition is necessary in the interest of safety.