By: Harper-Brown H.B. No. 2692

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Motor Vehicle Board and its powers and duties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subdivisions 2, and 10, Section 2301.002, Occupations Code, are amended to read as follows:

(2) "Board" means the Motor Vehicle Board of the Texas Department of Transportation [has the meaning assigned by Section 2301.005].

(10) "Director" means the director of the board and of the division.

SECTION 2. Section 2301.005(a), Occupations Code, is amended to read as follows:

(A) A reference in law, including a rule, to the Texas Motor Vehicle Commission [or to the board] means the [director, except that a reference to the board means the commission of it is related to the adoption of rules] board.

SECTION 3. Section 2301.005(e), Occupations Code, is repealed.

SECTION 4. Chapter 2301, Occupations Code, is amended by adding Subchapter B to read as follows: SUBCHAPTER B. MOTOR VEHICLE BOARD.

Sec. 2301.051. BOARD MEMBERSHIP; BOARD AS INDEPENDENT ENTITY. (a) The Motor Vehicle Board of the Texas Department of Transportation consists of nine members appointed by the governor with the advice and consent of the senate.

(b) The membership of the board includes:

(1) five dealers licensed under this chapter, at least three of whom are franchised dealers;

(2) one representative of a manufacturer or distributor licensed under this chapter.

(c) An appointment to the board shall be made without regard to race, color, disability, sex, religion, or national origin of the appointee.

(d) Except as otherwise provided by this chapter, in carrying out its policy-making and regulatory powers and duties under this chapter, the board is an independent entity within the department and is not an advisory body to the department.

Sec. 2301.052. MEMBER ELIGIBILITY: AUTOMATIC VACANCY. (a) A person is eligible to serve on the board if the person:

(1) is a citizen of the United States and a resident of this state; and

(2) does not have an interest in a business that manufactures, distributes, converts, leases, or sells motor vehicles, except for a person appointed under Section 2301.051(b)(1).

(b) A person is eligible for appointment under Section 2301.051(b)(1) only if:

(1) the person is a natural person who is a dealer or the owner or at least 20 percent of an entity that is a dealer; and

(2) the person's status as dealer is not derived from a dealer or dealership in which a manufacturer or distributor owns an interest.

(c) Except as provided by Subsection (d), a members's office is vacated if the member or a person related to the member within the first degree by consanguinity or affinity, as determined under Chapter 573, Government Code:

(1) becomes a license holder under this chapter;

(2) acquires an interest in a business that manufactures, distributes, converts, leases, or sells motor vehicles; or

(3) becomes an employee or paid consultant of a trade association in the motor vehicle industry.

(d) The office of a member appointed under Section 2301.0551(b)(1) is not vacated because the member or a person related to the member within the first degree by consanguinity or affinity, as determined under Chapter 573, Government Code, subsequently acquires an interest in a dealership.

(e) Notwithstanding the other provisions of this section, a person is not ineligible to be appointed to or serve on the board because the person or another person owns, directly or indirectly, shares of stock in a publicly traded company that manufactures or distributes motor vehicles, if the ownership interest is not substantial.

Sec. 2301.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a) In this section, "Texas trade association" means a nonprofit, cooperative and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

(b) An officer, employee, or paid consultant of a Texas trade association in a business or industry regulated by the board may not be a member of the board or an employee of the division who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group A17, of the position classification salary schedule.

(c) A person who is the spouse of an officer, manager, or paid consultant of a Texas trade association in a business or industry regulated by the board may not be a board member and may not be an employee who is exempt form the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group A17, of the position classification salary schedule.

(d) A person may not serve as a member of the board or act as the general counsel to the board if the person is required to register as a lobbyist under Chapter 305, Government Code because of the person's activities for compensation on behalf of a business or industry related to the operation of the board.

Sec. 2301.054. (a) Members of the board hold office for staggered six-year terms, with the terms of three members expiring on January 31 of each odd-numbered year.

(b) A person may not serve two consecutive full six-year terms as a member of the board.

(c) The governor shall appoint a person to serve the unexpired portion of the term of a member who vacates the office prior to end of the member's term.

Sec. 2301.055. FILING OF OATH. (a) A member of the board qualifies by taking the constitutional oath of office and filing the oath, with the certificate of appointment, with the secretary of state.

(b) On the filing of the documents described by Subsection (a), the secretary of state shall issue a commission as evidence of the authority of a member to serve on the board and act as a member of the board.

Sec. 2301.056. GROUNDS FOR REMOVAL. (a) It is a ground for removal form the board that a member:

(1) does not have at the time of appointment the qualifications required by Section 2301.052;

(2) does not maintain during service on the board the qualifications required by Section 2301.052;

(3) violates a prohibition established by Section 2301.053 or 2301.059(a);

(4) cannot, because of illness or disability, discharge the members's duties for a substantial part of the member's term; or

(5) is absent from more than half of the regularly scheduled meetings of the board that the member is eligible to attend during a calendar year unless the absence is excused by majority vote of the board.

(b) The validity of an action of the board is not affected by the fact that it is taken when a ground for removal of a board member exits.

(c) If the director has knowledge that a potential ground for removal exists, the director shall notify the presiding officer of the board of the ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal relates to the presiding officer, the director shall notify the assistant presiding officer of the board, who shall notify the governor and the attorney general that a potential ground for removal exists.

Sec. 2301.057. PER DIEM; REIMBURSEMENT. A member of the board is entitled to receive:

(1) $50 for each day the member is engaged in the duties of office, including time spent in necessary travel to and from meetings and on other duties; and

(2) reimbursement for all travel and other necessary expenses incurred while performing official duties.

Sec. 2301.058. OFFICERS; MEETINGS. (a) The governor shall designate one member of the board, other than a member appointed under Section 2301.051(b), as presiding officer. The presiding officer serves in that capacity at the will of the governor.

(b) The board shall hold a regular meeting in September of each year and elect an assistant presiding officer to serve for the following year.

(c) The board shall hold regular meetings as determined by a majority of the board members. The board shall hold a meeting at the request of:

(1) the presiding officer;

(2) any two members; or

(3) the director.

(d) The board shall adopt rules that provide for reasonable notice of each board meeting.

(e) The presiding officer presides at all meetings of the board except that:

(1) in the absence of the presiding officer, the assistant presiding officer presides; and

(2) in the absence of both the presiding officer and the assistant presiding officer, the members present shall select a member to preside at the meeting.

Sec. 2301.059. PROHIBITION ON VOTING. (a) A member of the board may not vote on an issue before the board for determination that directly affects the member or an entity in which the member has a financial interest.

(b) A member of the board appointed under Section 2301.051(b) may not vote on an issue involving a dispute in which a dealer and a manufacturer are parties.

(c) A member of the board appointed under Section 2301.051(b) is not counted in determining a quorum on an issue on which the member is prohibited from voting.

Sec. 2301.060. TRAINING. (a) To be eligible to take office as a member of the board, a person appointed to the board must complete at least one course of a training program that complies with this section.

(b) The training program must provide information to the person regarding:

(1) this chapter;

(2) the programs operated by the division;

(3) the role and functions of the division;

(4) the rules of the division with an emphasis on the rules that relate to disciplinary and investigatory authority;

(5) the current budget for the division;

(6) the results of the most recent formal audit of the division;

(7) the requirements of Chapters 551,552, and 2001, Government Code;

(8) the requirements of the conflict of interest laws and other laws relating to public officials; and

(9) any applicable ethics policies adopted by the board or the Texas Ethics Commission.

(c) A person appointed to the board is entitled to reimbursement for travel expenses incurred in attending the training program under this section, as provided by the General Appropriations Act, as if the person were a member of the board.

SECTION 5. Section 2301.101(c), Occupations Code, is amended to read as follows:

(c) The director serves at the will of the [executive director] board.

SECTION 6. Subchapter C, Chapter 2301, Occupations Code, is amended by adding Section 2301.102 to read as follows:

Sec. 2301.102. POWERS AND DUTIES OF DIRECTOR. (a) The director or a person designated by the director shall:

(1) meet with the board in an advisory capacity without a vote in each of the board's proceedings;

(2) maintain all minutes of the board's proceedings; and

(3) serve as the custodian of the board's files and records.

(b) The director or a person designated by the director, on behalf of the board, may negotiate with and, with the consent of a majority of the board, enter into contacts or other agreements with any entity to carry out the powers, duties, and responsibilities of the board.

(c) The director shall submit reports to the board as required by this chapter or board rule.

(d) Unless otherwise provided by this chapter or board rule, each application, petition, or other document requiring action by the board shall be directed to the director.

SECTION 6. Section 2301.103, Occupations Code, is amended to read as follows:

Sec. 2301.103. PERSONNEL. (a) The director shall appoint and employ personnel necessary to carry out the duties and functions of the director and the board under this chapter.

(b) A division employee is an employee of the department and is subject to the human resource rules and policies of the department and the transportation commission, except that, as applied to a division employee, the director shall exercise the powers granted to the executive director by those rules and policies.

(c) A division employee is subject to dismissal if the employee has an interest in or is related within the first degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to a person who has an interest in a business that manufactures, distributes, converts, sells, or leases motor vehicles.

SECTION 7. Subchapter C, Chapter 2301, Occupations Code, is amended by adding Section 2301.104 to read as follows:

Sec. 2301.104. QUALIFICATIONS AND STANDARDS OF CONDUCT. The board shall provide, as often as necessary, to its members and employees information regarding their:

(1) qualifications for office or employment under this chapter; and

(2) responsibilities under applicable laws relating to standards of conduct for state officers or employees.

SECTION 7. Section 2301.154, Occupations Code, is amended to read as follows:

Sec. 2301.154. DELEGATION OF POWERS. The board [director] may delegate any of its [the director's] powers to:

(1) a member of the board

(2) the director; or

(3) one or more of its [the division's] employees.

SECTION 8. Subchapter C, Chapter 2301, Occupations Code, is amended by adding Section 2301.158 to read as follows:

Sec. 2301.158. INTERACTION WITH TEXAS DEPARTMENT OF TRANSPORTATION. (a) The board shall advise, through the director, the department on:

(1) the board's and division's budgetary equipment, and data processing needs; and

(2) the purchase or other acquisition of facilities and property for the board and division.

(b) The executive director shall, through the offices of the department, provide equipment, facilities, property, and services necessary to carry out the division's purposes, powers, and duties. The executive director shall allocate department resources as the executive director determines necessary and appropriate to meet the needs of the division and the other offices of the department.

SECTION 9. Subchapter C, Chapter 2301, Occupations Code, is amended by adding Section 2301.159 to read as follows:

Sec. 2301.159. SEAL. The board shall adopt a seal to authenticate its records and orders.

SECTION 9. (a) Notwithstanding the terms of this bill, the governor shall make the first appointments to the board after the effective date of this Act so that the terms of:

(1) three of those first appointed begin February 1, 2008 and expire January 31, 2009;

(2) three of those first appointed begin February 1, 2008 and expire January 31, 2011; and

(3) three of those first appointed begin February 1, 2008 and expire January 31, 2013.

(b) Those appointed after those first appointed as provided by Subsection (a) shall be appointed as otherwise provided by this bill.

SECTION 10. This Act takes effect September 1, 2007