SRC-TAG, JEC  H.B. 3587 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 3587
By: Callegari (Lindsay)
                Natural Resources
5/27/2003
Committee Report (Amended)

DIGEST AND PURPOSE 

H.B. 3587 renames the Energy Corridor Management District as the Harris
County Improvement District No. 4 and amends some of the related
provisions in the Local Government Code. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends the heading to Subchapter K, Chapter 376, Local
Government Code, as added by Chapter 1376, Acts of the 77th Legislature,
Regular Session, 2001, to read as follows: 

SUBCHAPTER K.  HARRIS COUNTY IMPROVEMENT DISTRICT NO. 4

SECTION 2.  Amends Section 376.451(a), Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, to make
a conforming change. 

SECTION 3.  Amends Section 376.452, Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, by
adding Subsection (d), to provide that by creating the district and in
authorizing the City of Houston, Harris County, and other political
subdivisions to contract with the district, the legislature has
established a program to accomplish the public purposes set out in Section
52-a, Article III, Texas Constitution. 

SECTION 4.  Amends Section 376.453(3), Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, to make
a conforming change. 

SECTION 5.  Amends Section 376.459, Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, by
adding Subsection (d), to authorize the board, if it determines that it is
in the best interest  of the district, by resolution to increase or
decrease the number of directors on the board except that the board may
not consist of fewer than seven or more than 15 directors. 

SECTION 6.  Amends Section 376.461, Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, by
adding Subsection (c), to provide that a nonvoting director is not
included for the purpose of establishing a board quorum. 

SECTION 7.  Amends Section 376.464(a), Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, to
authorize the district to exercise the powers given to a corporation
created under Section 4B, Development Corporation Act of 1979 (Article
5190.6, V.T.C.S.), including the power to own, operate, acquire,
construct, lease, improve, or maintain a project described by that
section. 

SECTION 8.  Amends Section 376.467, Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, to
prohibit the board from financing a service or improvement project with
assessments  under this subchapter unless a written petition requesting
the improvement or service has been filed with the board.  Requires the
petition to be signed by the owners of a majority of the assessed value of
real property in the district subject to  the assessment as determined by
the most recent certified county property tax rolls; or at least 25
persons who own real property, rather than land, in the district, if there
are more than 25 persons who own real property in the district as
determined by the most recent certified county property tax rolls. 

SECTION 9.  Amends Section 376.468, Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, by
amending Subsection (a) and adding Subsection (c), to make conforming and
nonsubstantive changes and to provide that Section 375.243 does not apply
to the district. 

SECTION 10.  Amends Section 376.470, Local Government Code, as added by
Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, by
adding Subsection (d), to authorize the board to make a correction to or
deletion from the assessment roll without notice and hearing required for
an additional assessment if the correction or deletion does not increase
the amount of a parcel of land. 

SECTION 11.  Amends Subchapter K, Chapter 376, Local Government Code, as
added by Chapter 1376, Acts of the 77th Legislature, Regular Session,
2001, by adding Sections 376.478, 376.479, 376.480, and 376.481 to read as
follows: 

Sec. 376.478.  TAX AND ASSESSMENT ABATEMENTS.  Authorizes the district to
grant in the manner authorized by Chapter 312, Tax Code, an abatement for
a tax or assessment owed to the district. 

Sec. 376.479.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS.  Authorizes the
district to join and pay dues to an organization that enjoys tax-exempt
status under Section 501(c)(3), 501(c)(4), or 501(c)(6), Internal Revenue
Code of 1986 (26 U.S.C. Section 501), as amended; and performs services or
provides activities consistent with the furtherance of the purposes of the
district. 

Sec. 376.480.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.  Provides that
all or any part of the area of the district is eligible to be included in
a tax increment reinvestment zone created by the municipality under
Chapter 311, Tax Code;  a tax abatement reinvestment zone created by the
municipality under Chapter 312, Tax Code; or an enterprise zone created by
the municipality under Chapter 2303, Government Code. 

Sec. 376.481.  ECONOMIC DEVELOPMENT PROGRAMS.  (a)  Authorizes the
district to establish and provide for the administration of one or more
programs, including programs for making loans and grants of public money
and providing personnel and services of the district, to promote state or
local economic development and to stimulate business and commercial
activity in the district. 

(b)  Provides that for purposes of this section, the district has all of
the powers and authority of a municipality under Chapter 380. 

SECTION 12.  Repealers:  Sections 376.459(c) and 376.460(b), Local
Government Code, as added by Chapter 1376, Acts of the 77th Legislature,
Regular Session, 2001. 

SECTION 13.  (a)  Provides that the legislature validates and confirms all
acts and proceedings of the Harris County Improvement District No. 4 and
the district's board of directors that occurred before the effective date
of this Act. 

(b)  Provides that this section does not apply to any matter that on the
effective date of this Act is involved in litigation, if the litigation
ultimately results in the matter being held invalid by a final judgment of
a court with jurisdiction; or has been held invalid by a court with
jurisdiction. 

SECTION 14.  Effective date:  upon passage or September 1, 2003.

 LIST OF COMMITTEE AMENDMENTS:

Amend HB 3587 as follows:

On page 6, line 1, insert the following new sections and renumber
subsequent sections accordingly: 
 
SECTION 15.  Section 386.001(2), Health and Safety Code, is amended to
read as follows: 
  (2)  "Affected county" includes:
   (A)  Bastrop County;
   (B)  Bexar County;
   (C)  Caldwell County;
   (D)  Comal County;
   (E)  Ellis County;
   (F)  Gregg County;
   (G)  Guadalupe County;
   (H)  Harrison County;
   (I)  Hays County;
   (J)  Henderson County;
   (K)  Hood County;
   (L)  Hunt County;
   (M)  Johnson County;
   (N) [(K)]  Kaufman County;
   (O) [(L)]  Nueces County;
   (P) [(M)]  Parker County;
   (Q) [(N)]  Rockwall County;
   (R) [(O)]  Rusk County;
   (S) [(P)]  San Patricio County;
   (T) [(Q)]  Smith County;
   (U) [(R)]  Travis County;
   (V) [(S)]  Upshur County;
   (W) [(T)]  Victoria County;
   (X) [(U)]  Williamson County;  [and]
   (Y) [(V)]  Wilson County; and
   (Z)  any other county designated as an affected county by commission
rule    because of deteriorating air quality. 
 
SECTION 16.  Section 386.053(d), Health and Safety Code, is amended to
read as follows: 

(d)  The commission may propose revisions to the guidelines and criteria
adopted under this section as necessary to improve the ability of the plan
to achieve its goals.  Revisions may include, among other changes, adding
additional pollutants, adding stationary engines or engines used in
stationary applications, adding vehicles and equipment that use fuels
other than diesel, or adjusting eligible program categories, as
appropriate, to ensure that incentives established under this chapter
achieve the maximum possible emissions reductions.  The commission shall
make a proposed revision available to the public before the 45th day
preceding the date of final adoption of the revision and shall hold at
least one public meeting to consider public comments on the proposed
revision before final adoption. 
 
SECTION 17.  Sections 386.101(6) and (9), Health and Safety Code, are
amended to read as follows: 
  
(6)  "On-road diesel" means an on-road diesel-powered motor vehicle that
has a gross vehicle weight rating of 8,500 [10,000] pounds or more. 
  
(9)  "Repower" means to replace an old engine powering an on-road or
non-road diesel with a new engine, a used engine, a remanufactured engine,
or electric motors, drives, or  fuel cells[: 
[(A)  a new engine that emits at least 30 percent less than the oxides of
nitrogen emissions standard required by federal regulation for the current
model year for that engine; 
[(B)  an engine manufactured later than 1987 that emits at least 30
percent less than the oxides of nitrogen emissions standard emitted by a
new engine certified to the baseline oxides of nitrogen emissions standard
for that engine; 
[(C)  an engine manufactured before 1988 that emits not more than 50
percent of the oxides of nitrogen emissions standard emitted by a new
engine certified to the baseline oxides of nitrogen emissions standard for
that engine; or 
   [(D)  electric motors, drives, or fuel cells].
 
SECTION 18.  Section 386.102(b), Health and Safety Code, is amended to
read as follows: 
 
 (b)  Projects that may be considered for a grant under the program
include: 
  (1)  purchase or lease of on-road or non-road diesels;
  (2)  emissions-reducing retrofit projects for on-road or non-road
diesels; 
  (3)  emissions-reducing repower projects for on-road or non-road diesels;
(4)  purchase and use of emissions-reducing add-on equipment for on-road
or non-road diesels; 
(5)  development and demonstration of practical, low-emissions retrofit
technologies, repower options, and advanced technologies for on-road or
non-road diesels with lower emissions of oxides of nitrogen; 
  (6)  use of qualifying fuel; [and]
  (7)  implementation of infrastructure projects; and
  (8)  replacement of on-road or non-road diesels with newer on-road or
non-road   diesels. 
 
SECTION 19.  Section 386.103(a), Health and Safety Code, is amended to
read as follows: 

(a)  Any person as defined by Section 382.003 that owns one or more
on-road or non-road diesels that operate primarily within a nonattainment
area or affected county of this state or that otherwise contributes to the
state inventory of emissions of oxides of nitrogen may apply for a grant
under the program.  The commission may adopt guidelines to allow a person
other than the owner to apply for and receive a grant in order to improve
the ability of the program to achieve its goals. 
 
SECTION 20.  Section 386.104(f), Health and Safety Code, is amended to
read as follows: 

(f)  A proposed retrofit, repower, replacement, or add-on equipment
project must document, in a manner acceptable to the commission, a
reduction in emissions of oxides of nitrogen of at least 30 percent
compared with the baseline emissions adopted by the commission for the
relevant engine year and application.  After study of available emissions
reduction technologies, after public notice and comment, and after
consultation with the advisory board, the commission may revise the
minimum percentage reduction in emissions of oxides of nitrogen required
by this subsection to improve the ability of the program to achieve its
goals. 
 
SECTION 21.  Section 386.105, Health and Safety Code, is amended by adding
Subsection (e) to read as follows: 
 
 (e)  The commission may allow for the apportionment of credits associated
with a project  between the plan and another program or entity if the part
of the credit assigned to the  program that is part of the plan still
meets any applicable cost-effectiveness criteria. 
 
SECTION 22.  Section 386.106(a), Health and Safety Code, is amended to
read as follows: 

 (a)  Except as provided by Section 386.107 and except for infrastructure
projects and infrastructure purchases that are part of a broader retrofit,
repower,   replacement, or add-on equipment project, the commission may
not award a grant for a proposed project the cost-effectiveness of which,
calculated in accordance with Section 386.105 and criteria developed under
that section, exceeds $13,000 per ton of oxides of nitrogen emissions
reduced in the nonattainment area or affected county for which the project
is proposed.  This subsection does not restrict commission authority under
other law to require emissions reductions with a cost-effectiveness that
exceeds $13,000 per ton. 

SECTION 23.  Section 386.112(b), Health and Safety Code, is amended to
read as follows: 

(b)  The program shall authorize statewide incentives for the
reimbursement of incremental costs for the purchase or lease, according to
the schedule provided by Section 386.113, of new on-road diesels that are
certified by the United States Environmental Protection Agency or the
California Air Resources Board to an emissions standard provided by
Section 386.113 if the purchaser or lessee of the on-road diesel agrees to
register the vehicle in this state and to operate the on-road diesel in
this state for not less than 75 percent of the on-road diesel's annual
mileage. 

SECTION 24.  Subchapter C, Chapter 386, Health and Safety Code, is amended
by adding Section 386.115 to read as follows: 
 
Sec. 386.115.  MODIFICATION OF VEHICLE ELIGIBILITY.  After evaluating the
availability of vehicles meeting the emissions standards and after public
notice and comment, the commission, in consultation with the advisory
board, may expand the program to include other on-road vehicles,
regardless of fuel type used, that meet the emissions standards, have a
gross vehicle weight rating of greater than 8,500 pounds, and are
purchased or leased in lieu of a new on-road diesel. 

SECTION 25.  Chapter 368, Health and Safety Code, is amended by adding
Section 386.116 to read as follows: 

 Section 386.116.SMALL BUSINESS INCENTIVES. (a) In this
 section, "small business" means a business owned by a person who:
 (1)  owns and operates not more than two vehicles, one
 of which is:

   (A)an on-road diesel with a pre-1994 engine
   model; or
   (B)a non-road diesel with an engine with
   uncontrolled emissions; and

   (2)  has owned the vehicle described by Subdivision
   (1)(A) or (B) for more than one year.
 
  (b)  The commission by rule shall develop a method of providing fast and
simple   access to grants under this subchapter for a small business. 
 
  (c)  The commission shall publicize and promote the
  availability of grants under this section to encourage the use of
  vehicles that produce fewer emissions.
 
  (d)  On or before December 1 of each even-numbered year, the
  commission shall report commission actions and results under this
  section to the governor, lieutenant governor, and speaker of the
  house of representatives.
 
 SECTION 26.  Section 386.202(b), Health and Safety Code, is amended to
read as follows: 

(b)  Programs approved under this subchapter and other energy efficiency
programs administered by the utility commission must include energy
conservation programs for the retirement of materials and appliances that
contribute to energy consumption or peak energy demand to ensure the
reduction of energy consumption, energy demand, or peak loads, and
associated emissions of air contaminants. 
 
SECTION 27. Section 386.252, Health and Safety Code, is amended to read as
follows: 
 
Sec. 386.252.  USE OF FUND.  (a)  Money in the fund may be used only to
implement and administer programs established under the plan and shall be
allocated as follows: 

 (1)  for the diesel emissions reduction incentive program, 87.5 [72]
percent of the money in the fund, of which not more than  [three percent
may be used for infrastructure projects and not more than] 10 percent may
be used for on-road diesel purchase or lease incentives; 
(2)  [for the motor vehicle purchase or lease incentive program, 15
percent of the money in the fund; 
 [(3)  for the energy efficiency grant program, 7.5 percent of the money
in the fund; 
[(4)]  for the new technology research and development program, 9.5[7.5]
percent of the money in the fund, of which up to $250,000 is allocated for
administration, up to $200,000 is allocated for a health effects study,
[and] $500,000 is to be deposited in the state treasury to the credit of
the clean air account created under Section 382.0622 to supplement funding
for air quality planning activities in affected counties, and not less
than 20 percent is to be allocated each year to support research related
to air quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
nonattainment areas by a nonprofit organization based in Houston. 
(3)  [(5)]  for administrative costs incurred by [the utility commission,]
the commission[, the comptroller,] and the laboratory, three percent. 
(b)  Up to 25 [15] percent of the money allocated under Subsection (a) to
a particular program and not expended under that program by January
[March] 1 of the second fiscal year of a fiscal biennium may be used for
another program under the plan as determined by the commission in
consultation with the advisory board. 
 
SECTION 28.  Section 387.003(b), Health and Safety Code, is amended to
read as follows: 

(b)  Under the program, the Texas Council on Environmental Technology
shall provide grants to be used to support development of
emissions-reducing technologies that may be used for projects eligible for
awards under Chapter 386 and other new technologies that show promise for
commercialization.  The primary objective of this chapter is to promote
the development of commercialization technologies that will support
projects that may be funded under Chapter 386 and this chapter, including
advanced technologies such as fuel cells, catalysts, and fuel additives. 

SECTION 29. Section 387.006(a), Health and Safety Code, is amended to read
as follows: 

(a)  An application for a technology grant under this chapter must show
clear and compelling evidence that: 

(1)  the proposed technology project has a strong commercialization plan
and organization; and 
  (2)  the technology proposed for funding:
(A)  is likely to be offered for commercial sale in this state as soon as 
practicable but no later than [within] five years after the date of the
application for funding; and 
(B)  once commercialized, will offer opportunities for projects eligible
for funding under Chapter 386. 
 SECTION 30.  Section 388.003, Health and Safety Code, is amended by
adding Subsection (i) to read as follows: 
 
 (i)  A building certified by a national, state, or local accredited
energy efficiency program  shall be considered in compliance. 
 
SECTION 31.  Section 388.004, Health and Safety Code, is amended to read
as follows: 

Section 388.004.  ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF MUNICIPALITY.
(a) For construction outside of the local jurisdiction of a municipality: 

(1)  a building certified by a national, state, or local accredited energy
efficiency program shall be considered in compliance; 
(2)  a building with inspections from private code-certified inspectors
using the energy efficiency chapter of the International Residential Code
or International Energy Conservation Code shall be considered in
compliance; and 
(3)  a builder who does not have access to either of the above methods for
a building shall certify compliance using a form provided by the
laboratory, enumerating the code-compliance features of the building. 
 
 (b)  A builder shall retain until the third anniversary of the date on
which compliance  is achieved the original copy of any documentation that
establishes compliance under  this section.  The builder on receipt of any
compliance documentation shall provide a  copy to the owner of the
building. 
 
 (c)  A single-family residence built in the unincorporated area of a
county the    construction of which was completed on or after September 1,
2001, but not later than  August 31, 2002, shall be considered in
compliance.  
 
SECTION 32.  Chapter 388, Health and Safety Code, is amended by adding
Sections 388.009 and 388.010 to read as follows: 
 
 Sec.  388.009.  ENERGY-EFFICIENT BUILDING PROGRAM. (a) In this section,
"National Housing Act" means Section 203(b), (i), or (k) of the National
Housing Act (12  U.S.C. Sections 1709(b), (i), and (k), as amended. 
 
 (b)  The General Land Office, in consultation with the laboratory, the
commission, and an  advisory committee appointed by the General Land
Office, may develop en energy efficient building accreditation program for
buildings that exceed the building energy  performance standards under
Section 388.003 by 15 percent or more. 
 
 (c)  If the General Land Office adopts a program under this section, the
General Land  Office, in consultation with the laboratory, shall update
the program on or before    December 1 of each even-numbered year using
the best available energy-efficient  building practices. 
 
 (d)  If the General Land Office adopts a program under this section, the
program shall use  a checklist system to produce an energy-efficient
building scorecard to help: 
  
  (1)  home buyers compare potential homes and, by providing a copy of the
completed scorecard to a mortgage lender, qualify for energy-efficient
mortgages   under the National Housing Act; and 
  (2)  communities qualify for emissions reduction credits by adopting
codes that   meet or exceed the energy-efficient building or energy
performance standards   established under this chapter. 
 
 (e)  The General Land Office may establish a public information program
to inform  homeowners, sellers, buyers, and others regarding
energy-efficient building ratings. 
 
  (f)  If the General Land Office adopts a program under this section, the
laboratory shall  establish a system to measure the reduction in energy
and emissions produced under the  energy-efficient building program and
report those savings to the commission. 
 
 Sec.  388.010.  OUTREACH TO NEAR-NONATTAINMENT AREAS. The commission
shall conduct outreach to near-nonattainment areas and affected counties
on the benefits  of implementing energy efficiency initiatives, including
the promotion of energy-efficient  building programs and urban heat island
mitigation techniques, as a way to meet air  quality attainment goals
under the federal Clean Air Act (42 U.S.C. Section 7401 et seq.). 
 
SECTION 33.  Chapter 389, Health and Safety Code, is amended by adding
Section 389.003 to read as follows: 
 
 Sec.  389.003.  COMPUTING ENERGY EFFICIENCY EMISSIONS REDUCTIONS. 
 The commission shall develop a method to use in computing emissions
reductions  obtained through energy efficiency initiatives. 
 
SECTION 34.  Subchapter H, Chapter 2155, Government Code, is amended by
adding Section 2155.451 to read as follows: 
 
 Sec. 2155.451.  VENDORS THAT MEET OR EXCEED AIR QUALITY STANDARDS.  (a)
This section applies only to a contract to be performed, wholly or partly,
in an  affected county, as that term is defined by Section 386.001, Health
and Safety Code. 
 
 (b)  The commission and state agencies procuring goods and services may:
 
 (1)  give preference to goods or services of a vendor that demonstrates
that the vendor  meets or exceeds any state or federal environmental
standards, including voluntary  standards, relating to air quality; or 
 (2)  require that a vendor demonstrate that the vendor meets or exceeds
any state or  federal environmental standards, including voluntary
standards, relating to air quality. 

SECTION 35.  Subchapter Z, Chapter 271, Local Government Code, is amended
by adding Section 271.907 to read as follows: 
 
 Sec. 271.907.  VENDORS THAT MEET OR EXCEED AIR QUALITY STANDARDS.   (a)
In this section, "governmental agency" has the meaning assigned by the
Section  271.003. 
 
 (b)  This section applies only to a contract to be performed, wholly or
partly, in an  affected county, as that term is defined by Section
386.001, Health and Safety Code. 
 
 (c)  A governmental agency procuring goods or services may:
 (1)  give preference to goods or services of a vendor that demonstrates
that the vendor  meets or exceeds any state or federal environmental
standards, including voluntary  standards, relating to air quality; or 
 
 (2)  require that a vendor demonstrate that the vendor meets or exceeds
any state or  federal environmental standards, including voluntary
standards, relating to air quality. 

SECTION 36.  Section 151.0515, Tax Code, is amended by amending
Subsections (a), (b), and  
(c) and adding Subsection (b-1) to read as follows:

(a)  In this section, "equipment" includes all off-road, heavy-duty diesel
equipment [classified as construction equipment], other than implements of
husbandry used solely for agricultural purposes, including: 
  (1)  pavers;
  (2)  tampers/rammers;
  (3)  plate compactors;
   (4)  concrete pavers;
  (5)  rollers;
  (6)  scrapers;
  (7)  paving equipment;
  (8)  surface equipment;
  (9)  signal boards/light plants;
  (10)  trenchers;
  (11)  bore/drill rigs;
  (12)  excavators;
  (13)  concrete/industrial saws;
  (14)  cement and mortar mixers;
  (15)  cranes;
  (16)  graders;
  (17)  off-highway trucks;
  (18)  crushing/processing equipment;
  (19)  rough terrain forklifts;
  (20)  rubber tire loaders;
  (21)  rubber tire tractors/dozers;
  (22)  tractors/loaders/backhoes;
  (23)  crawler tractors/dozers;
  (24)  skid steer loaders;
  (25)  off-highway tractors; [and]
  (26)  Dumpsters/tenders; and
  (27)  mining equipment;
  
(b)  In each county in this state, a surcharge is imposed on the retail
sale, lease, or rental of new or used equipment in an amount equal to two
[one] percent of the sale price or the lease or rental amount. 
 
 (b-1)  In each county in this state, a surcharge is imposed on the
storage, use, or other  consumption in this state of new or used
equipment.  The surcharge is at the same  percentage rate as is provided
by Subsection (b) on the sales price or the lease or rental  amount of the
equipment. 
 
(c)  The surcharge shall be collected at the same time and in the same
manner and shall be administered and enforced in the same manner as the
tax imposed under this chapter [subchapter].  The comptroller shall adopt
any additional procedures needed for the collection, administration, and
enforcement of the surcharge authorized by this section and shall deposit
all remitted surcharges to the credit of the Texas emissions reduction
plan fund. 
 
SECTION 37.  Section 152.0215(a), Tax Code, is amended to read as follows:
 
(a)  A surcharge is imposed on every retail sale, [or] lease, or use of
every on-road diesel motor vehicle that is over 14,000 pounds [and is of a
model year 1996 or earlier] and that is sold, [or] leased, or used in this
state.  The amount of the surcharge is two [2.5] percent of the total
consideration. 
 
SECTION 38.  Section 224.153, Transportation Code, amended by adding
Subsection (d) to read as follows: 
 
 (d)  The department may not authorize vehicles addressed in Subsection
(c) to use a high  occupancy vehicle lane if such use would violate
federal transit or highway funding  restrictions. 

SECTION 39.  Sections 501.138(a) and (b), Transportation Code, are amended
to read as follows: 

(a)  An applicant for a certificate of title, other than the state or a
political subdivision of  the state, must pay the county
assessor-collector a fee of: [$13]. 
 (1)  $33 if the applicant's residence is a county located within a
non-attainment area as  defined under Section 107(d) of the federal Clean
Air Act (U.S.C. Section 7407),  as  amended, or is an affected county, as
defined by Section 386.01, Health and Safety Code;  or 
 (2) $25 if the applicant's residence is any other county.
 
 (b)  The county assessor-collector shall send:
(1)  $5 of the fee to the county treasurer for deposit in the officers'
salary fund; [and] 
  (2)  $8 of the fee to the department:
(A)  together with the application within the time prescribed by Section
501.023;  or 
(B)  if the fee is deposited in an interest-bearing account or certificate
in the county depository or invested in an investment authorized by
Subchapter A, Chapter 2256, Government Code, not later than the 35th day
after the date on which the fee is received; and 
  (3)  The following amount to the comptroller at the time and in the
manner   prescribed by the comptroller: 
   (A)  $20 of the fee if the applicant's residence is a county located
within a    non-attainment area as defined under Section 107(d) of the
federal Clean   Air Act (42 U.S.C. Section 7407), as amended, or is an
affected county, as    defined by Section 386.001, Health and Safety Code;
or 
   (B) $12 of the fee if the applicant's residence is any other county.
   (C)  Fees collected under this subsection to be sent to the comptroller
shall    be deposited as follows: 
    (1)  before September 1, 2008, to the credit of the Texas emissions
reduction fund; and 
    (2)  after September 1, 2008, to the credit of the Texas Mobility
Fund. 

SECTIONA40.  Section 545.353, Transportation Code, is amended by adding
Subsection (j) to read as follows: 
 
 (j)  The commission may not determine or declare, or agree to
 determine or declare, a prima facie speed limit for environmental
 purposes on a part of the highway system.
 
SECTION 41. Section 386.157, Health and Safety Code, and
 
 Section 386.159, Health and Safety Code, are repealed.
 
SECTION 42.  (a)  Except as provided by Subsection (b) of this section,
this Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39, Article
III, Texas Constitution.  If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2003. 

(b)  Sections 24 and 25 of this Act take effect on the first day of the
first month beginning on or after the earliest date on which this Act may
take effect if it receives a vote of two-thirds of all the members elected
to each house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect before
September 1, 2003, Sections 24 and 25 of this Act take effect September 1,
2003.  The comptroller of public accounts may adopt emergency rules for
the implementation of Sections 36 and 37 of this Act. 

(c)  Section 40 of this Act does not affect speed limits which have been
approved by the Transportation Commission prior to the effective date of
this Act.