81R861 JD-D

By: McClendon H.B. No. 1549

A BILL TO BE ENTITLED

AN ACT

relating to the creation, organization, duties, and functions of the Texas Department of Motor Vehicles; providing a penalty.

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

ARTICLE 1. TEXAS DEPARTMENT OF MOTOR VEHICLES

SECTION 1.01. Title 7, Transportation Code, is amended by adding Subtitle M to read as follows:

SUBTITLE M. DEPARTMENT OF MOTOR VEHICLES

CHAPTER 1001. ORGANIZATION OF DEPARTMENT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1001.001. DEFINITIONS. In this subtitle:

(1) "Commissioner" means the commissioner of motor vehicles.

(2) "Department" means the Texas Department of Motor Vehicles.

Sec. 1001.002. CREATION OF DEPARTMENT; DUTIES. (a) The department is created as an agency of this state.

(b) In addition to the other duties required of the Texas Department of Motor Vehicles, the department shall administer and enforce:

(1) Subtitles A, B, and D;

(2) Chapters 550, 702, 703, 706, 708, and 724;

(3) Chapter 2301, Occupations Code; and

(4) Article 4413(37), Revised Statutes.

Sec. 1001.003. COMPOSITION OF DEPARTMENT. The department is composed of the commissioner and other officers and employees required to efficiently implement:

(1) this subtitle;

(2) other applicable motor vehicle laws of this state; and

(3) other laws that grant jurisdiction to or are applicable to the department.

Sec. 1001.004. SUNSET PROVISION. The department is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the department is abolished September 1, 2021.

Sec. 1001.005. DEFENSE BY ATTORNEY GENERAL. The attorney general shall defend an action brought against the commissioner or an employee or officer of the department as a result of that person's official act or omission, whether or not at the time of the institution of the action that person has terminated service with the department.

[Sections 1001.006-1001.020 reserved for expansion]

SUBCHAPTER B. COMMISSIONER OF MOTOR VEHICLES

Sec. 1001.021. CHIEF EXECUTIVE. (a) The commissioner is the department's chief executive and administrative officer.

(b) The commissioner has the powers and duties vested in the commissioner by this code and other applicable motor vehicle laws of this state.

Sec. 1001.022. APPOINTMENT; TERM. (a) The governor, with the advice and consent of the senate, shall appoint the commissioner. The commissioner serves a two-year term that expires on February 1 of each odd-numbered year.

(b) The governor shall appoint the commissioner without regard to the race, color, disability, sex, religion, age, or national origin of the appointee.

Sec. 1001.023. QUALIFICATIONS. The commissioner must:

(1) be a competent and experienced administrator;

(2) be well informed and qualified in the fields of motor vehicles and vehicle titling and registration; and

(3) have at least five years of experience in the administration of business or government or as a practicing attorney or certified public accountant.

Sec. 1001.024. INELIGIBILITY FOR PUBLIC OFFICE. The commissioner is ineligible to be a candidate for a public elective office in this state unless the commissioner has resigned and the governor has accepted the resignation.

Sec. 1001.025. COMPENSATION. The commissioner is entitled to compensation as provided by the General Appropriations Act.

Sec. 1001.026. GROUNDS FOR REMOVAL. (a) It is a ground for removal from office if the commissioner:

(1) does not have at the time of appointment the qualifications required by Section 1001.023;

(2) does not maintain during service as commissioner the qualifications required by Section 1001.023;

(3) violates a prohibition established by Section 1007.002, 1007.004, or 1007.005; or

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

(b) The validity of an action of the commissioner or the department is not affected by the fact that it is taken when a ground for removal of the commissioner exists.

Sec. 1001.027. TRAINING PROGRAM FOR COMMISSIONER. (a) Not later than the 90th day after the date on which the commissioner takes office, the commissioner shall complete a training program that complies with this section.

(b) The training program must provide the commissioner with information regarding:

(1) the legislation that created the department;

(2) the programs operated by the department;

(3) the role and functions of the department;

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

(5) the current budget for the department;

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

(7) the requirements of:

(A) the open meetings law, Chapter 551, Government Code;

(B) the public information law, Chapter 552, Government Code;

(C) the administrative procedure law, Chapter 2001, Government Code; and

(D) other laws relating to public officials, including conflict of interest laws; and

(8) any applicable ethics policies adopted by the department or the Texas Ethics Commission.

[Sections 1001.028-1001.040 reserved for expansion]

SUBCHAPTER C. PERSONNEL

Sec. 1001.041. DEPARTMENT PERSONNEL. (a) Subject to the General Appropriations Act or other law, the commissioner shall appoint deputies, assistants, and other personnel as necessary to carry out the powers and duties of the commissioner and the department under this code, other applicable motor vehicle laws of this state, and other laws granting jurisdiction or applicable to the department or the commissioner.

(b) A person appointed under this section must have the professional, administrative, and motor vehicle experience necessary to qualify the person for the position to which the person is appointed.

(c) A person appointed as an associate or deputy commissioner or to hold an equivalent position must have at least five years of the experience required for appointment as commissioner under Section 1001.023. At least two years of that experience must be in work related to the position to be held.

Sec. 1001.042. DIVISION OF RESPONSIBILITIES. The commissioner shall develop and implement policies that clearly define the respective responsibilities of the commissioner and the staff of the department.

Sec. 1001.043. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT. (a) The commissioner or the commissioner's designee shall prepare and maintain a written policy statement to ensure implementation of a program of equal employment opportunity under which all personnel transactions are made without regard to race, color, disability, sex, religion, age, or national origin. The policy statement must include:

(1) personnel policies, including policies relating to recruitment, evaluation, selection, appointment, training, and promotion of personnel that are in compliance with Chapter 21, Labor Code;

(2) a comprehensive analysis of the department workforce that meets federal and state guidelines;

(3) procedures by which a determination can be made of significant underuse in the department workforce of all persons for whom federal or state guidelines encourage a more equitable balance; and

(4) reasonable methods to appropriately address those areas of significant underuse.

(b) A policy statement prepared under this section must:

(1) cover an annual period;

(2) be updated annually;

(3) be reviewed by the civil rights division of the Texas Workforce Commission for compliance with Subsection (a); and

(4) be filed with the governor.

(c) The governor shall deliver a biennial report to the legislature based on the information received under Subsection (b). The report may be made separately or as a part of other biennial reports made to the legislature.

Sec. 1001.044. QUALIFICATIONS AND STANDARDS OF CONDUCT. The commissioner shall provide to department employees, as often as necessary, information regarding their:

(1) qualification for office or employment under this subtitle; and

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

Sec. 1001.045. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS. (a) The commissioner or the commissioner's designee shall develop an intra-agency career ladder program. The program must require intra-agency posting of all nonentry level positions concurrently with any public posting.

(b) The commissioner or the commissioner's designee shall develop a system of annual performance evaluations. All merit pay for department employees must be based on the system established under this subsection.

CHAPTER 1002. RULES

Sec. 1002.001. GENERAL RULEMAKING AUTHORITY. The commissioner or the department may adopt any rules necessary and appropriate to implement the powers and duties of the department under this code and other laws of this state.

Sec. 1002.002. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. The commissioner or the department may not adopt rules restricting advertising or competitive bidding by a person regulated by the department except to prohibit false, misleading, or deceptive practices by the person.

Sec. 1002.003. INTERIM RULES TO COMPLY WITH FEDERAL REQUIREMENTS. (a) The commissioner or the department may adopt rules to implement state responsibility in compliance with a federal law or regulation or action of a federal court relating to a person or activity under the jurisdiction of the department if:

(1) federal law or regulation, or an action of a federal court, requires:

(A) a state to adopt the rules; or

(B) action by a state to ensure protection of the citizens of the state;

(2) the rules will avoid federal preemption of an activity under the jurisdiction of the department; or

(3) the rules will prevent the loss of federal funds to this state.

(b) The commissioner or the department may adopt a rule under this section only if the federal action requiring the adoption of a rule occurs or takes effect between sessions of the legislature or at such time during a session of the legislature that sufficient time does not remain to permit the preparation of a recommendation for legislative action or permit the legislature to act. A rule adopted under this section shall remain in effect only until 30 days following the end of the next session of the legislature unless a law is enacted that authorizes the subject matter of the rule. If a law is enacted that authorizes the subject matter of the rule, the rule will continue in effect.

CHAPTER 1003. DEPARTMENT PROCEDURES

Sec. 1003.001. APPLICABILITY OF CERTAIN LAWS. Except as specifically provided by law, the department is subject to Chapters 2001 and 2002, Government Code.

Sec. 1003.002. SUMMARY PROCEDURES FOR ROUTINE MATTERS. (a) The commissioner or the department by rule may:

(1) create a summary procedure for routine matters; and

(2) designate department activities that otherwise would be subject to Chapter 2001, Government Code, as routine matters to be handled under the summary procedure.

(b) An activity may be designated as a routine matter only if the activity is:

(1) voluminous;

(2) repetitive;

(3) believed to be noncontroversial; and

(4) of limited interest to anyone other than persons immediately involved in or affected by the proposed department action.

(c) The rules may establish procedures different from those contained in Chapter 2001, Government Code. The procedures must require, for each party directly involved, notice of a proposed negative action not later than the fifth day before the date the action is proposed to be taken.

(d) A rule adopted by the commissioner under this section may provide for the delegation of authority to take action on a routine matter to a salaried employee of the department designated by the commissioner.

Sec. 1003.003. REVIEW OF ACTION ON ROUTINE MATTER. (a) A person directly or indirectly affected by an action of the commissioner or the department on a routine matter taken under the summary procedure adopted under Section 1003.002 is entitled to a review of the action under Chapter 2001, Government Code.

(b) The person must apply to the commissioner not later than the 60th day after the date of the action to be entitled to the review.

(c) The timely filing of the application for review immediately stays the action pending a hearing on the merits.

(d) The commissioner and the department may adopt rules relating to an application for review under this section and consideration of the application.

Sec. 1003.004. INFORMAL DISPOSITION OF CERTAIN CONTESTED CASES. The commissioner or the department, as applicable, may, on written agreement or stipulation of each party and any intervenor, informally dispose of a contested case in accordance with Section 2001.056, Government Code, notwithstanding any provision of this code or other law that requires a hearing before the commissioner or the department, as applicable.

Sec. 1003.005. NEWSPAPER PUBLICATION. Except as otherwise provided by law, a notice or other matter that this code or other law requires the commission or the department to publish must be published for three successive weeks in two newspapers that:

(1) are printed in this state; and

(2) have a general circulation in this state.

CHAPTER 1004. GENERAL SUBPOENA POWERS; WITNESSES

AND PRODUCTION OF RECORDS

Sec. 1004.001. DEFINITION. In this chapter, "records" includes books, accounts, documents, papers, correspondence, and other material.

Sec. 1004.002. SUBPOENA AUTHORITY. (a) With respect to a matter that the commissioner or the department has authority to consider or investigate, the commissioner or the department may issue a subpoena applicable throughout this state that requires:

(1) the attendance and testimony of a witness; and

(2) the production of records.

(b) In connection with a subpoena, the commissioner or department may require attendance and production of records before the commissioner or the commissioner's designee:

(1) at the department's offices in Austin; or

(2) at another place designated by the commissioner or the department.

(c) In connection with a subpoena, the commissioner or the commissioner's designee may administer an oath, examine a witness, or receive evidence.

Sec. 1004.003. SERVICE OF SUBPOENA. (a) A subpoena issued by the commissioner or the department may be served, at the discretion of the commissioner or department, by the commissioner, an authorized agent of the commissioner, a sheriff, or a constable.

(b) The sheriff's or constable's fee for serving the subpoena is the same as the fee paid to the sheriff or constable for similar services.

Sec. 1004.004. ENFORCEMENT OF SUBPOENA. (a) On application of the commissioner or the department, as applicable, in the case of disobedience of a subpoena issued by the commissioner or the department or the contumacy of a person, a district court may issue an order requiring a person subpoenaed to obey the subpoena, to give evidence, or to produce records if the person has refused to do so.

(b) A court may punish as contempt the failure to obey a court order under Subsection (a).

(c) If the court orders compliance with the subpoena or finds the person in contempt for failure to obey the order, the commissioner or the department, as applicable, or the attorney general when representing the department, may recover reasonable costs and fees, including attorney's fees and investigative costs incurred in the proceedings.

(d) An application under Subsection (a) must be made in a district court in Travis County or in the county in which the subpoena is served.

Sec. 1004.005. COMPENSATION FOR ATTENDANCE. A person required by subpoena to attend a proceeding before the commissioner, the commissioner's designee, or the department is entitled to:

(1) reimbursement for mileage in the same amount for each mile as the mileage travel allowance for a state employee for traveling to or from the place where the person's attendance is required, if the place is more than 25 miles from the person's place of residence; and

(2) a fee for each day or part of a day the person is required to be present as a witness that is equal to the greater of:

(A) $10; or

(B) a state employee's per diem travel allowance.

Sec. 1004.006. OUT-OF-STATE MATERIALS. (a) A person with materials located outside this state that are requested by the commissioner or the department may make the materials available for examination at the place where the materials are located.

(b) The commissioner may designate a representative, including an official of the state in which the materials are located, to examine the materials.

(c) The commissioner may respond to a similar request from an official of another state or of the United States.

Sec. 1004.007. ACCESS TO INFORMATION. (a) A record or other evidence acquired under a subpoena under this chapter is not a public record for the period the commissioner or the department, as applicable, considers reasonably necessary to:

(1) complete the investigation;

(2) protect the person being investigated from unwarranted injury; or

(3) serve the public interest.

(b) The record or other evidence is not subject to a subpoena, other than a grand jury subpoena, until:

(1) the record or other evidence is released for public inspection by the commissioner or the department; or

(2) after notice and a hearing, a district court determines that obeying the subpoena would not jeopardize the public interest and any investigation by the commissioner or the department.

(c) Except for good cause, a district court order under Subsection (b) may not apply to:

(1) a record or communication received from a law enforcement agency or another regulatory agency; or

(2) the internal notes, memoranda, reports, or communications made in connection with a matter that the commissioner or the department has the authority to consider or investigate.

Sec. 1004.008. PRIVILEGED AND CONFIDENTIAL RECORDS AND INFORMATION; PROTECTIVE ORDERS. (a) A record subpoenaed and produced under this chapter that is otherwise privileged or confidential by law remains privileged or confidential until admitted into evidence in an administrative hearing or a court.

(b) The commissioner may issue a protective order relating to the confidentiality or privilege of a record described by Subsection (a) to restrict the use or distribution of the record:

(1) by a person; or

(2) in a proceeding other than a proceeding before the commissioner or the department.

Sec. 1004.009. COOPERATION WITH LAW ENFORCEMENT. On request, the commissioner or the department may furnish records or other evidence obtained by subpoena to:

(1) a law enforcement agency of this state, another state, or the United States; or

(2) a prosecuting attorney of a municipality, county, or judicial district of this state, another state, or the United States.

Sec. 1004.010. EFFECT ON CONTESTED CASE. Sections 1004.002, 1004.006, 1004.007, and 1004.009 do not affect the conduct of a contested case under Chapter 2001, Government Code.

CHAPTER 1005. JUDICIAL REVIEW

Sec. 1005.001. ACTION SUBJECT TO JUDICIAL REVIEW. An action of the commissioner or the department subject to judicial review under this chapter includes a decision, order, rate, rule, form, or administrative or other ruling of the commissioner.

Sec. 1005.002. PETITION FOR JUDICIAL REVIEW. (a) After failing to get relief from the commissioner, any party at interest who is dissatisfied with an action of the commissioner or the department may file a petition for judicial review against the commissioner or department, as applicable, as defendant.

(b) The petition must state the particular objection to the action and may be filed only in a district court in Travis County.

Sec. 1005.003. JUDICIAL REVIEW. Judicial review of the action is under the substantial evidence rule and shall be conducted under Chapter 2001, Government Code.

Sec. 1005.004. ACTION NOT VACATED. (a) The filing of a petition for judicial review of an action under this chapter does not vacate the action.

(b) After notice and hearing, the court may vacate the action if the court finds it would serve the interest of justice to do so.

Sec. 1005.005. APPEAL. (a) A party to the action under Section 1005.002 may appeal to an appellate court that has jurisdiction, and the appeal is at once returnable to that court.

(b) An appeal under this section has precedence in the appellate court over any cause of a different character pending in the court.

(c) The commissioner or the department is not required to give an appeal bond in an appeal arising under this chapter.

CHAPTER 1006. PUBLIC ACCESS

Sec. 1006.001. ACCESS TO PROGRAMS AND FACILITIES. (a) The department shall prepare and maintain a written plan that describes how a person who does not speak English may be provided reasonable access to the department's programs.

(b) The department shall comply with federal and state laws for program and facility accessibility.

Sec. 1006.002. PUBLIC COMMENT. The commissioner and the department shall develop and implement policies that provide the public with a reasonable opportunity to appear before the commissioner or the department and to speak on any issue under the jurisdiction of the commissioner or the department.

Sec. 1006.003. PUBLIC REPRESENTATION ON ADVISORY BODY. (a) At least one-half of the membership of each advisory body appointed by the commissioner, other than an advisory body whose membership is determined by this code or by other law, must represent the general public.

(b) A public representative may not be:

(1) an officer, director, or employee of a business entity regulated by the department;

(2) a person required to register with the Texas Ethics Commission under Chapter 305, Government Code; or

(3) a person related within the second degree by affinity or consanguinity to a person described by Subdivision (1) or (2).

CHAPTER 1007. STANDARDS OF CONDUCT

Sec. 1007.001. APPLICATION OF LAW RELATING TO ETHICAL CONDUCT. The commissioner and each employee or agent of the department is subject to the code of ethics and the standard of conduct imposed by Chapter 572, Government Code, and any other law regulating the ethical conduct of state officers and employees.

Sec. 1007.002. CERTAIN BUSINESS INTERESTS; SERVICE AS COMMISSIONER. A person is not eligible for appointment as commissioner if the person, the person's spouse, or any other person who resides in the same household as the person:

(1) is registered, certified, or licensed by the department;

(2) is employed by or participates in the management of a business entity or other organization regulated by or receiving funds from the department;

(3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving funds from the department; or

(4) uses or receives a substantial amount of tangible goods, services, or funds from the department, other than compensation or reimbursement authorized by law.

Sec. 1007.003. CERTAIN BUSINESS INTERESTS; EMPLOYEES. (a) A person who is a director, officer, attorney, agent, or employee of an occupation or business entity regulated by the department may not be employed by the department.

(b) A person who resides in the same household as a person who is an officer, managerial employee, or paid consultant in an occupation or business entity regulated by the department may not be employed in an exempt salary position as defined by the General Appropriations Act.

Sec. 1007.004. TRADE ASSOCIATIONS. (a) A person who is an officer, employee, or paid consultant of a trade association of motor vehicle dealers may not be:

(1) the commissioner; or

(2) an employee of the department 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.

(b) A person who is the spouse of an officer, manager, or paid consultant of a trade association of motor vehicle dealers may not be:

(1) the commissioner; or

(2) an employee of the department 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) In this section, "trade association" means a nonprofit, cooperative, and voluntarily joined association of business or professional competitors designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

Sec. 1007.005. LOBBYING ACTIVITIES. A person may not serve as the commissioner or act as the general counsel to the commissioner 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 an occupation related to the operation of the department.

Sec. 1007.006. PROHIBITED REPRESENTATION. (a) A person who served as the commissioner, the general counsel to the commissioner or to the department, or an employee of the State Office of Administrative Hearings who was involved in hearing cases under this code or another motor vehicle law of this state commits an offense if the person represents another person in a matter before the commissioner or the department or receives compensation for services performed on behalf of another person regarding a matter pending before the commissioner or the department during the one-year period after the date the person ceased to be the commissioner, the general counsel to the commissioner or the department, or an employee of the State Office of Administrative Hearings.

(b) A person who served as a member of the Texas Transportation Commission or the Public Safety Commission or as an employee of the Texas Department of Transportation or Department of Public Safety, or who served as the commissioner, the general counsel to the commissioner or the department, or an employee of the department or the State Office of Administrative Hearings, commits an offense if, after the person ceased to serve, the person represents another person or receives compensation for services performed on behalf of another person regarding a matter with which the person was directly concerned during the person's service. For purposes of this subsection, a person was directly concerned with a matter if the person had personal involvement with the matter or if the matter was within the scope of the person's official responsibility.

(c) An offense under this section is a Class A misdemeanor.

(d) This section does not apply to a department employee whose position is eliminated as a direct result of a reduction in the department's workforce.

ARTICLE 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS

DEPARTMENT OF TRANSPORTATION

PART A. GENERAL PROVISIONS AND ADMINISTRATION

SECTION 2A.01. Section 201.202(a), Transportation Code, is amended to read as follows:

(a) The commission shall organize the department into divisions to accomplish the department's functions and the duties assigned to it, including divisions for:

(1) aviation;

(2) highways and roads; and

(3) public transportation[; and

[(4) motor vehicle titles and registration].

SECTION 2A.02. Section 201.931(2), Transportation Code, is amended to read as follows:

(2) "License" includes:

(A) a permit issued by the department that authorizes the operation of a vehicle and its load or a combination of vehicles and load exceeding size or weight limitations;

(B) a motor carrier registration issued under Chapter 643;

(C) a vehicle storage facility license issued under Chapter 2303, Occupations Code;

(D) a license or permit for outdoor advertising issued under Chapter 391 or 394; and

(E) a salvage vehicle dealer or agent license issued under Chapter 2302, Occupations Code[;

[(F) specially designated or specialized license plates issued under Subchapters E and F, Chapter 502; and

[(G) an apportioned registration issued according to the International Registration Plan under Section 502.054].

SECTION 2A.03. The following sections of the Transportation Code are repealed:

(1) Section 201.202(c); and

(2) Section 201.805, as added by Chapter 1407 (S.B. 766), Acts of the 80th Legislature, Regular Session, 2007.

PART B. CONTROL OF TRANSPORTATION ASSETS

SECTION 2B.01. Section 202.002, Transportation Code, is repealed.

PART C. FUNDING AND FEDERAL AID

SECTION 2C.01. Section 222.001, Transportation Code, is amended to read as follows:

Sec. 222.001. USE OF STATE HIGHWAY FUND. Money that is required to be used for public roadways by the Texas Constitution or federal law and that is deposited in the state treasury to the credit of the state highway fund, including money deposited to the credit of the state highway fund under Title 23, United States Code, may be used only:

(1) to improve the state highway system;

(2) to mitigate adverse environmental effects that result directly from construction or maintenance of a state highway by the department; [or]

(3) by the Department of Public Safety to police the state highway system and to administer state laws relating to traffic and safety on public roads; or

(4) by the Texas Department of Motor Vehicles to administer state laws relating to traffic and safety on public roads.

SECTION 2C.02. Section 222.002, Transportation Code, is amended to read as follows:

Sec. 222.002. USE OF STATE HIGHWAY FUND FOR DEPARTMENT FUNCTIONS. Subject to legislative appropriation, money [Money] in the state highway fund that is not required to be spent for public roadways by the Texas Constitution or federal law may be used for any function performed by the department or the Texas Department of Motor Vehicles.

PART D. STATE HIGHWAY TOLL PROJECTS

SECTION 2D.01. Sections 228.055(b) and (h), Transportation Code, are amended to read as follows:

(b) The department may impose and collect the administrative fee, so as to recover the cost of collecting the unpaid toll, not to exceed $100. The department shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the Texas Department of Motor Vehicles [department] by first class mail and may require payment not sooner than the 30th day after the date the notice was mailed. The registered owner shall pay a separate toll and administrative fee for each event of nonpayment under Section 228.054.

(h) In this section, "registered owner" means the owner of a vehicle as shown on the vehicle registration records of the Texas Department of Motor Vehicles [department] or the analogous department or agency of another state or country.

SECTION 2D.02. Section 228.056(b), Transportation Code, is amended to read as follows:

(b) In the prosecution of an offense under Section 228.055(c), (d), or (e):

(1) it is presumed that the notice of nonpayment was received on the fifth day after the date of mailing;

(2) a computer record of the Texas Department of Motor Vehicles [department] of the registered owner of the vehicle is prima facie evidence of its contents and that the defendant was the registered owner of the vehicle when the underlying event of nonpayment under Section 228.054 occurred; and

(3) a copy of the rental, lease, or other contract document covering the vehicle on the date of the underlying event of nonpayment under Section 228.054 is prima facie evidence of its contents and that the defendant was the lessee of the vehicle when the underlying event of nonpayment under Section 228.054 occurred.

PART E. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND

HIGHWAYS IN CERTAIN COUNTIES

SECTION 2E.01. Sections 284.0701(b), (e), and (h), Transportation Code, are amended to read as follows:

(b) The county may impose and collect the administrative cost so as to recover the expense of collecting the unpaid toll, not to exceed $100. The county shall send a written notice of nonpayment to the registered owner of the vehicle at that owner's address as shown in the vehicle registration records of the Texas Department of Motor Vehicles [department] by first-class mail not later than the 30th day after the date of the alleged failure to pay and may require payment not sooner than the 30th day after the date the notice was mailed. The registered owner shall pay a separate toll and administrative cost for each event of nonpayment under Section 284.070.

(e) It is an exception to the application of Subsection (a) or (c) if the registered owner of the vehicle transferred ownership of the vehicle to another person before the event of nonpayment under Section 284.070 occurred, submitted written notice of the transfer to the Texas Department of Motor Vehicles [department] in accordance with Section 520.023, and before the 30th day after the date the notice of nonpayment is mailed, provides to the county the name and address of the person to whom the vehicle was transferred. If the former owner of the vehicle provides the required information within the period prescribed, the county may send a notice of nonpayment to the person to whom ownership of the vehicle was transferred at the address provided by the former owner by first-class mail before the 30th day after the date of receipt of the required information from the former owner. The subsequent owner of the vehicle for which the proper toll was not paid who is mailed a written notice of nonpayment under this subsection and fails to pay the proper toll and administrative cost within the time specified by the notice of nonpayment commits an offense. The subsequent owner shall pay a separate toll and administrative cost for each event of nonpayment under Section 284.070. Each failure to pay a toll or administrative cost under this subsection is a separate offense.

(h) In this section, "registered owner" means the owner of a vehicle as shown on the vehicle registration records of the Texas Department of Motor Vehicles [department] or the analogous department or agency of another state or country.

PART F. CERTIFICATE OF TITLE ACT

SECTION 2F.01. Section 501.002(3), Transportation Code, is amended to read as follows:

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

PART G. REGISTRATION OF VEHICLES

SECTION 2G.01. Section 502.001(3), Transportation Code, is amended to read as follows:

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 2G.02. Sections 502.053(a) and (b), Transportation Code, are amended to read as follows:

(a) The department [Texas Department of Transportation] shall reimburse the Texas Department of Criminal Justice for the cost of manufacturing license plates or registration insignia as the license plates or insignia and the invoice for the license plates or insignia are delivered to the department [Texas Department of Transportation].

(b) When manufacturing is started, the Texas Department of Criminal Justice, the department [Texas Department of Transportation], and the comptroller, after negotiation, shall set the price to be paid for each license plate or insignia. The price must be determined from:

(1) the cost of metal, paint, and other materials purchased;

(2) the inmate maintenance cost per day;

(3) overhead expenses;

(4) miscellaneous charges; and

(5) a previously approved amount of profit for the work.

PART H. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES

SECTION 2H.01. Sections 503.001(2) and (5), Transportation Code, are amended to read as follows:

(2) "Commission" means the commissioner of motor vehicles [Texas Transportation Commission].

(5) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 2H.02. Section 503.001(1), Transportation Code, is repealed.

PART I. MISCELLANEOUS PROVISIONS

SECTION 2I.01. Section 520.001, Transportation Code, is amended to read as follows:

Sec. 520.001. DEFINITION. In this chapter, "department" means the Texas Department of Motor Vehicles [Transportation].

PART J. COMPULSORY INSPECTION OF VEHICLES

SECTION 2J.01. Section 548.306(h), Transportation Code, is amended to read as follows:

(h) The Texas Department of Motor Vehicles [Transportation] may deny reregistration of a vehicle if the registered owner of the vehicle has received notification under Subsection (c) and the vehicle has not passed a verification emissions inspection.

PART K. ACCIDENTS AND ACCIDENT REPORTS

SECTION 2K.01. Section 550.0601, Transportation Code, is amended to read as follows:

Sec. 550.0601. DEFINITION. In this subchapter, "department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 2K.02. Section 550.081, Transportation Code, as amended by Chapters 74 (H.B. 423) and 1407 (S.B. 766), Acts of the 80th Legislature, Regular Session, 2007, is reenacted and amended to read as follows:

Sec. 550.081. REPORT OF MEDICAL EXAMINER OR JUSTICE OF THE PEACE. (a) In this section, "department" means the Texas Department of Motor Vehicles.

(b) A medical examiner or justice of the peace acting as coroner in a county that does not have a medical examiner's office or that is not part of a medical examiner's district shall submit a report in writing to the department [Texas Department of Transportation] of the death of a person that was the result of a traffic accident to which this chapter applies and that occurred within the jurisdiction of the medical examiner or justice of the peace in the preceding calendar quarter.

(c) [(b)] The report must be submitted before the 11th day of each calendar month and include:

(1) the name of the deceased and a statement as to whether the deceased was:

(A) the operator of or a passenger in a vehicle involved in the accident; or

(B) a pedestrian or other nonoccupant of a vehicle;

(2) the date of the accident and the name of the county in which the accident occurred;

(3) the name of any laboratory, medical examiner's office, or other facility that conducted toxicological testing relative to the deceased; and

(4) the results of any toxicological testing that was conducted.

(d) [(c)] A report required by this section shall be sent to:

(1) the crash records bureau of the department at its headquarters in Austin; or

(2) any other office or bureau of the department that the department designates.

(e) [(d)] If toxicological test results are not available to the medical examiner or justice of the peace on the date a report must be submitted, the medical examiner or justice shall:

(1) submit a report that includes the statement "toxicological test results unavailable"; and

(2) submit a supplement to the report that contains the information required by Subsections (c)(3) [(b)(3)] and (4) as soon as practicable after the toxicological test results become available.

(f) [(e)] The department shall prepare and when requested supply to medical examiners' offices and justices of the peace the forms necessary to make the reports required by this section.

PART L. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES

SECTION 2L.01. Section 551.302, Transportation Code, is amended to read as follows:

Sec. 551.302. REGISTRATION. The Texas Department of Motor Vehicles [Transportation] may adopt rules relating to the registration and issuance of license plates to neighborhood electric vehicles.

PART M. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT

SECTION 2M.01. Sections 601.004(a), (c), and (d), Transportation Code, are amended to read as follows:

(a) The operator of a motor vehicle that is involved in an accident in this state shall report the accident to the department [Texas Department of Transportation] not later than the 10th day after the date of the accident if:

(1) the accident is not investigated by a law enforcement officer; and

(2) at least one person, including the operator, sustained:

(A) bodily injury or death; or

(B) property damage to an apparent extent of at least $1,000.

(c) The report must be made in writing in the form prescribed by the [Texas Department of Transportation and the] department and must contain information as necessary to enable the department to determine if the requirements for the deposit of security under Subchapter F do not apply because of the existence of insurance or an exception specified in this chapter. The operator or owner shall provide additional information as required by the department.

(d) A written report of an accident made to the department [Texas Department of Transportation] under Section 550.061 or 550.062 complies with this section if that report contains the information required by this section.

SECTION 2M.02. Section 601.023, Transportation Code, is amended to read as follows:

Sec. 601.023. PAYMENT OF STATUTORY FEES. The department may pay[:

[(1) a statutory fee required by the Texas Department of Transportation for a certified abstract or in connection with suspension of a vehicle registration; or

[(2)] a statutory fee payable to the comptroller for issuance of a certificate of deposit required by Section 601.122.

SECTION 2M.03. Section 601.451, Transportation Code, as added by Chapter 892 (S.B. 1670), Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

Sec. 601.451. DEFINITION. In this subchapter, "implementing agencies" means:

(1) the department;

(2) [the Texas Department of Transportation;

[(3)] the Texas Department of Insurance; and

(3) [(4)] the Department of Information Resources.

SECTION 2M.04. Subchapter N, Chapter 601, Transportation Code, as added by Chapter 1325 (H.B. 3588), Acts of the 78th Legislature, Regular Session, 2003, is repealed.

PART N. ADMINISTRATIVE ADJUDICATION OF VEHICLE PARKING AND

STOPPING OFFENSES

SECTION 2N.01. Section 682.008, Transportation Code, is amended to read as follows:

Sec. 682.008. PRESUMPTIONS. In an administrative adjudication hearing under this chapter:

(1) it is presumed that the registered owner of the motor vehicle is the person who parked or stopped the vehicle at the time and place of the offense charged; and

(2) the Texas Department of Motor Vehicle's [Transportation's] computer-generated record of the registered vehicle owner is prima facie evidence of the contents of the record.

PART O. ABANDONED MOTOR VEHICLES

SECTION 2O.01. Section 683.001(1), Transportation Code, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

PART P. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS

SECTION 2P.01. Section 702.001(1), Transportation Code, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

PART Q. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM

SECTION 2Q.01. Section 707.001(2), Transportation Code, is amended to read as follows:

(2) "Owner of a motor vehicle" means the owner of a motor vehicle as shown on the motor vehicle registration records of the Texas Department of Motor Vehicles [Transportation] or the analogous department or agency of another state or country.

SECTION 2Q.02. Section 707.011(b), Transportation Code, is amended to read as follows:

(b) Not later than the 30th day after the date the violation is alleged to have occurred, the designated department, agency, or office of the local authority or the entity with which the local authority contracts under Section 707.003(a)(1) shall mail the notice of violation to the owner at:

(1) the owner's address as shown on the registration records of the Texas Department of Motor Vehicles [Transportation]; or

(2) if the vehicle is registered in another state or country, the owner's address as shown on the motor vehicle registration records of the department or agency of the other state or country analogous to the Texas Department of Motor Vehicles [Transportation].

SECTION 2Q.03. Section 707.017, Transportation Code, is amended to read as follows:

Sec. 707.017. ENFORCEMENT. If the owner of a motor vehicle is delinquent in the payment of a civil penalty imposed under this chapter, the county assessor-collector or the Texas Department of Motor Vehicles [Transportation] may refuse to register a motor vehicle alleged to have been involved in the violation.

PART R. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY

SECTION 2R.01. Sections 1(3) and (4), Article 4413(37), Revised Statutes, are amended to read as follows:

(3) "Department" means the Texas Department of Motor Vehicles [Transportation].

(4) "Commissioner" ["Director"] means the commissioner of motor vehicles [executive director of the Texas Department of Transportation].

SECTION 2R.02. Section 2, Article 4413(37), Revised Statutes, is amended to read as follows:

Sec. 2. ESTABLISHMENT OF AUTHORITY. The Automobile Burglary and Theft Prevention Authority is established in the Texas Department of Motor Vehicles [Transportation]. The authority is not an advisory body to the Texas Department of Motor Vehicles [Transportation].

SECTION 2R.03. Sections 3(c), (h), and (l), Article 4413(37), Revised Statutes, are amended to read as follows:

(c) The commissioner [director of the Department of Public Safety] or the commissioner's [director's] designee serves ex officio as the seventh member of the authority.

(h) If the commissioner [director] has knowledge that a potential ground for removal exists, the commissioner [director] shall notify the presiding officer of the authority of the potential 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 involves the presiding officer, the commissioner [director] shall notify the next highest officer of the authority, who shall notify the governor and the attorney general that a potential ground for removal exists.

(l) The commissioner [director] or the commissioner's [director's] designee shall provide to members of the authority, as often as necessary, information regarding their qualifications for office under this article and their responsibilities under applicable laws relating to standards of conduct for state officers.

SECTION 2R.04. Sections 9(a), (b), and (g), Article 4413(37), Revised Statutes, are amended to read as follows:

(a) The authority shall develop a statewide motor vehicle registration program to be administered by the department [Department of Public Safety].

(b) The authority shall identify a period of the day during which most motor vehicles are not used. An owner of a motor vehicle that does not usually use the motor vehicle during that period may register the motor vehicle with the department [Department of Public Safety] in accordance with the program developed by the authority.

(g) The department [Department of Public Safety] shall adopt rules to administer the program and shall adopt fees in an amount sufficient to recover the cost of administering the program.

ARTICLE 3. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS DEPARTMENT

OF PUBLIC SAFETY

PART A. REGIONAL MOBILITY AUTHORITIES

SECTION 3A.01. Sections 370.191(c), (d), and (e), Transportation Code, are amended to read as follows:

(c) To the extent an authority considers appropriate to expedite commerce and based on the Texas ITS/CVO Business Plan prepared by the department, the Texas Department of Motor Vehicles [Public Safety], and the comptroller, the authority shall provide for implementation by the appropriate agencies of the use of Intelligent Transportation Systems for Commercial Vehicle Operations (ITS/CVO) in any new commercial motor vehicle inspection facility constructed by the authority and in any existing facility located at a port of entry to which this section applies. The authority shall coordinate with other state and federal transportation officials to develop interoperability standards for the systems.

(d) If an authority constructs a facility at which commercial vehicle safety inspections are conducted, the facility may not be used solely for the purpose of conducting commercial motor vehicle inspections by the Texas Department of Motor Vehicles [Public Safety] and the facility must include implementation of ITS/CVO technology by the appropriate agencies to support all commercial motor vehicle regulation and enforcement functions.

(e) As part of its implementation of technology under this section, an authority shall to the greatest extent possible as a requirement of the construction of the facility:

(1) enhance efficiency and reduce complexity for motor carriers by providing a single point of contact between carriers and regulating state and federal government officials and providing a single point of information, available to wireless access, about federal and state regulatory and enforcement requirements;

(2) prevent duplication of state and federal procedures and locations for regulatory and enforcement activities, including consolidation of collection of applicable fees;

(3) link information systems of the authority, the department, the Texas Department of Motor Vehicles [Public Safety], the comptroller, and, to the extent possible, the United States Department of Transportation and other appropriate regulatory and enforcement entities; and

(4) take other necessary action to:

(A) facilitate the flow of commerce;

(B) assist federal interdiction efforts;

(C) protect the environment by reducing idling time of commercial motor vehicles at the facilities;

(D) prevent highway damage caused by overweight commercial motor vehicles; and

(E) seek federal funds to assist in the implementation of this section.

PART B. CERTIFICATE OF TITLE ACT

SECTION 3B.01. Section 501.100(e), Transportation Code, is amended to read as follows:

(e) On or after the 31st day after the date the department receives a rebuilder fee under Subsection (d), the department shall deposit $50 of the fee to the credit of the state highway fund to be used only by the department [Department of Public Safety] to enforce this chapter and $15 to the credit of the general revenue fund.

PART C. REGISTRATION OF VEHICLES

SECTION 3C.01. Sections 502.009(a), (b), and (d), Transportation Code, are amended to read as follows:

(a) The department [Department of Public Safety] shall ensure compliance with the motor vehicle emissions inspection and maintenance program through a vehicle inspection sticker-based enforcement system except as provided by this section or Section 548.3011. Subsections (b)-(e) apply only if the United States Environmental Protection Agency determines that the state has not demonstrated, as required by 40 C.F.R. Section 51.361, that sticker-based enforcement of the program is more effective than registration-based enforcement and gives the Texas Natural Resource Conservation Commission or the governor written notification that the reregistration-based enforcement of the program, as described by those subsections, will be required. If Subsections (b)-(e) are made applicable as provided by this subsection, the department shall terminate reregistration-based enforcement of the program under those subsections on the date the United States Environmental Protection Agency gives the Texas Natural Resource Conservation Commission or a person the commission designates written notification that reregistration-based enforcement is not required for the state implementation plan.

(b) The department may not register a motor vehicle if the department determines or receives from the Texas Natural Resource Conservation Commission [or the Department of Public Safety] notification that the registered owner of the vehicle has not complied with Subchapter F, Chapter 548.

(d) The department and[,] the Texas Natural Resource Conservation Commission[, and the Department of Public Safety] shall enter an agreement regarding the responsibilities for costs associated with implementing this section.

SECTION 3C.02. Section 502.1715(b), Transportation Code, is amended to read as follows:

(b) Fees collected under this section shall be deposited to the credit of the state highway fund. Subject to appropriations, the money shall be used by the department [Department of Public Safety] to:

(1) support the department's [Department of Public Safety's] reengineering of the driver's license system to provide for the issuance by the department [Department of Public Safety] of a driver's license or personal identification certificate, to include use of image comparison technology;

(2) establish and maintain a system to support the driver responsibility program under Chapter 708; and

(3) make lease payments to the master lease purchase program for the financing of the driver's license reengineering project.

SECTION 3C.03. Section 502.1715(c), Transportation Code, as amended by Chapters 892 (S.B. 1670) and 1108 (H.B. 2337), Acts of the 79th Legislature, Regular Session, 2005, is reenacted and amended to read as follows:

(c) Fees collected under this section shall be deposited to the credit of the state highway fund. Subject to appropriation, the money may be used by the [Department of Public Safety, the] Texas Department of Insurance, the Department of Information Resources, and the department to carry out Subchapter N, Chapter 601.

SECTION 3C.04. Section 502.1715(d), Transportation Code, is amended to read as follows:

(d) The [Department of Public Safety, the] Texas Department of Insurance, the Department of Information Resources, and the department shall jointly adopt rules and develop forms necessary to administer this section.

PART D. DRIVER'S LICENSES AND CERTIFICATES

SECTION 3D.01. Sections 521.001(a)(1) and (2), Transportation Code, are amended to read as follows:

(1) "Commissioner" means the commissioner of motor vehicles.

(2) "Department" means the Texas Department of Motor Vehicles [Public Safety.

[(2) "Director" means the public safety director].

SECTION 3D.02. Section 521.042(e), Transportation Code, is amended to read as follows:

(e) The commissioner [director] may maintain records required under this subchapter on microfilm or computer.

SECTION 3D.03. Section 521.043, Transportation Code, is amended to read as follows:

Sec. 521.043. ELIMINATION OF CERTAIN UNNECESSARY RECORDS. The department is not required to maintain records relating to a person if the commissioner [director] decides that the records are no longer necessary, except that the department shall maintain a record of a conviction as long as the record may be used:

(1) as grounds for a license cancellation, suspension, revocation, or denial; or

(2) in conjunction with other records of convictions, to establish that a person is a frequent violator of traffic laws.

SECTION 3D.04. Section 521.163, Transportation Code, is amended to read as follows:

Sec. 521.163. REEXAMINATION. (a) The commissioner [director] may require the holder of a license to be reexamined if the commissioner [director] determines that the holder is incapable of safely operating a motor vehicle.

(b) The reexamination shall be conducted in the license holder's county of residence unless the holder and the commissioner [director] agree to a different location.

SECTION 3D.05. Sections 521.165(a) and (c), Transportation Code, are amended to read as follows:

(a) The commissioner [director] may certify and set standards for the certification of certain employers, government agencies, and other appropriate organizations to allow those persons to train and test for the ability to operate certain types of vehicles.

(c) In issuing a driver's license for certain types of vehicles, the commissioner [director] may waive a driving test for an applicant who has successfully completed and passed the training and testing conducted by a person certified under Subsection (a).

SECTION 3D.06. Section 521.294, Transportation Code, is amended to read as follows:

Sec. 521.294. DEPARTMENT'S DETERMINATION FOR LICENSE REVOCATION. The department shall revoke the person's license if the department determines that the person:

(1) is incapable of safely operating a motor vehicle;

(2) has not complied with the terms of a citation issued by a jurisdiction that is a party to the Nonresident Violator Compact of 1977 for a traffic violation to which that compact applies;

(3) has failed to provide medical records or has failed to undergo medical or other examinations as required by a panel of the medical advisory board;

(4) has failed to pass an examination required by the commissioner [director] under this chapter;

(5) has been reported by a court under Section 521.3452 for failure to appear unless the court files an additional report on final disposition of the case;

(6) has been reported within the preceding two years by a justice or municipal court for failure to appear or for a default in payment of a fine for a misdemeanor punishable only by fine, other than a failure reported under Section 521.3452, committed by a person who is at least 14 years of age but younger than 17 years of age when the offense was committed, unless the court files an additional report on final disposition of the case; or

(7) has committed an offense in another state or Canadian province that, if committed in this state, would be grounds for revocation.

SECTION 3D.07. Section 521.310(a), Transportation Code, is amended to read as follows:

(a) If the commissioner [director] believes that a person who has been placed on probation under Section 521.309 has violated a term or condition of the probation, the commissioner [director] shall notify the person and summon the person to appear at a hearing in the court or before the presiding officer or judge who recommended that the person be placed on probation after notice as provided by Sections 521.295 and 521.296.

SECTION 3D.08. Sections 521.344(e), (f), and (g), Transportation Code, are amended to read as follows:

(e) After the date has passed, according to department records, for successful completion of the educational program designed to rehabilitate persons who operated motor vehicles while intoxicated, the commissioner [director] shall revoke the license of a person who does not successfully complete the program or, if the person is a resident without a license to operate a motor vehicle in this state, shall issue an order prohibiting the person from obtaining a license.

(f) After the date has passed, according to department records, for successful completion of an educational program for repeat offenders as required by Section 13, Article 42.12, Code of Criminal Procedure, the commissioner [director] shall suspend the license of a person who does not successfully complete the program or, if the person is a resident without a license, shall issue an order prohibiting the person from obtaining a license.

(g) A revocation, suspension, or prohibition order under Subsection (e) or (f) remains in effect until the department receives notice of successful completion of the educational program. The commissioner [director] shall promptly send notice of a revocation or prohibition order issued under Subsection (e) or (f) by first class mail to the person at the person's most recent address as shown in the records of the department. The notice must include the date of the revocation or prohibition order, the reason for the revocation or prohibition, and a statement that the person has the right to request in writing that a hearing be held on the revocation or prohibition. Notice is considered received on the fifth day after the date the notice is mailed. A revocation or prohibition under Subsection (e) or (f) takes effect on the 30th day after the date the notice is mailed. The person may request a hearing not later than the 20th day after the date the notice is mailed. If the department receives a request under this subsection, the department shall set the hearing for the earliest practical time and the revocation or prohibition does not take effect until resolution of the hearing.

SECTION 3D.09. Section 521.3465(c), Transportation Code, is amended to read as follows:

(c) If the person is a resident of this state without a driver's license to operate a motor vehicle, the commissioner [director] shall issue an order prohibiting the person from being issued a driver's license before the 181st day after the date of the conviction.

SECTION 3D.10. Section 521.3466(b), Transportation Code, is amended to read as follows:

(b) If the person is a resident of this state without a driver's license to operate a motor vehicle, the commissioner [director] shall issue an order prohibiting the person from being issued a driver's license until the second anniversary of the date of the conviction.

SECTION 3D.11. Section 521.452(a), Transportation Code, is amended to read as follows:

(a) After written approval by the commissioner [director], the department may issue to a law enforcement officer an alias driver's license to be used in supervised activities involving a criminal investigation.

PART E. COMMERCIAL DRIVER'S LICENSES

SECTION 3E.01. Section 522.003(8), Transportation Code, is amended to read as follows:

(8) "Department" means the Texas Department of Motor Vehicles [Public Safety].

SECTION 3E.02. Section 522.007, Transportation Code, is amended to read as follows:

Sec. 522.007. EXEMPTION FOR NEIGHBORING STATES. (a) The commissioner of motor vehicles [public safety director] shall enter negotiations with an appropriate person or entity of a state bordering this state for the purpose of applying the exemption contained in Section 522.004(a)(1) to residents of that state.

(b) The commissioner of motor vehicles [public safety director] may enter an agreement to apply the exemption contained in Section 522.004(a)(1) to residents of a bordering state only if that state extends a similar exemption to residents of this state.

PART F. DRIVER'S LICENSE COMPACT OF 1993

SECTION 3F.01. Sections 523.003(2) and (5), Transportation Code, are amended to read as follows:

(2) "Executive director" means the commissioner of motor vehicles [director of the Department of Public Safety] or the equivalent officer of another state.

(5) "Licensing authority" means the Texas Department of Motor Vehicles [Public Safety] or the equivalent agency of another state.

PART G. ADMINISTRATIVE SUSPENSION OF DRIVER'S LICENSE FOR FAILURE

TO PASS TEST FOR INTOXICATION

SECTION 3G.01. Section 524.001(8), Transportation Code, is amended to read as follows:

(8) "Department" means the Texas Department of Motor Vehicles [Public Safety].

SECTION 3G.02. Section 524.001(9), Transportation Code, is repealed.

PART H. MOTORCYCLE AND BICYCLE AWARENESS

SECTION 3H.01. Section 525.001(b), Transportation Code, is amended to read as follows:

(b) The Texas Department of Motor Vehicles [Public Safety] shall include motorcycle and bicycle awareness information in any edition of the Texas driver's handbook [published after the department exhausts the supply of the handbook that the department had on September 1, 1993].

PART I. SUBTITLE C, TITLE 7, DEFINITIONS

SECTION 3I.01. Sections 541.002(1) and (2), Transportation Code, are amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Public Safety] acting directly or through its authorized officers and agents.

(2) "Commissioner" ["Director"] means the commissioner of motor vehicles [public safety director].

PART J. VEHICLE EQUIPMENT

SECTION 3J.01. Section 547.104, Transportation Code, is amended to read as follows:

Sec. 547.104. SLOW-MOVING-VEHICLE EMBLEM STANDARDS. The commissioner [director] shall adopt standards and specifications that:

(1) apply to the color, size, and mounting position of a slow-moving-vehicle emblem; and

(2) at the time adopted, correlate with and conform as closely as practicable to the standards and specifications adopted or approved by the American Society of Agricultural Engineers for a uniform emblem to identify a slow-moving vehicle.

SECTION 3J.02. Section 547.802(c), Transportation Code, is amended to read as follows:

(c) The commissioner [director] may require an inspection of a motor-driven cycle braking system and may disapprove a system that:

(1) does not comply with the brake performance requirements in Section 547.408; or

(2) is not designed or constructed to ensure reasonable and reliable performance during actual use.

PART K. COMPULSORY INSPECTION OF VEHICLES

SECTION 3K.01. Section 548.001(2), Transportation Code, is amended to read as follows:

(2) "Commissioner" ["Commission"] means the commissioner of motor vehicles [Public Safety Commission].

SECTION 3K.02. The heading to Section 548.301, Transportation Code, is amended to read as follows:

Sec. 548.301. COMMISSIONER [COMMISSION] TO ESTABLISH PROGRAM.

SECTION 3K.03. Sections 548.301(a), (b), and (b-1), Transportation Code, are amended to read as follows:

(a) The commissioner [commission] shall establish a motor vehicle emissions inspection and maintenance program for vehicles as required by any law of the United States or the state's air quality state implementation plan.

(b) The commissioner [commission] by rule may establish a motor vehicle emissions inspection and maintenance program for vehicles specified by the conservation commission in a county for which the conservation commission has adopted a resolution requesting the commission to establish such a program and for which the county and the municipality with the largest population in the county by resolution have formally requested a proactive air quality plan consisting of such a program.

(b-1) The commissioner [commission] by rule may establish a motor vehicle emissions inspection and maintenance program for vehicles subject to an early action compact as defined by Section 382.301, Health and Safety Code, that is consistent with the early action compact.

SECTION 3K.04. Section 548.302, Transportation Code, is amended to read as follows:

Sec. 548.302. COMMISSIONER [COMMISSION] TO ADOPT STANDARDS AND REQUIREMENTS. The commissioner [commission] shall:

(1) adopt standards for emissions-related inspection criteria consistent with requirements of the United States and the conservation commission applicable to a county in which a program is established under this subchapter; and

(2) develop and impose requirements necessary to ensure that an inspection certificate is not issued to a vehicle subject to a program established under this subchapter unless the vehicle has passed a motor vehicle emissions inspection at a facility authorized and certified by the department.

SECTION 3K.05. Sections 548.407(a), (b), (f), (g), (h), (j), and (l), Transportation Code, are amended to read as follows:

(a) Before an application for certification as an inspection station or inspector is denied, the commissioner [director] or a person the commissioner [director] designates shall give the person written notification of:

(1) the proposed denial;

(2) each reason for the proposed denial; and

(3) the person's right to an administrative hearing to determine whether the evidence warrants the denial.

(b) Before a certificate of appointment as an inspector or inspection station is revoked or suspended, the commissioner [director] or a person the commissioner [director] designates shall give written notification to the inspector or inspection station of the revocation or the period of suspension. The notice shall include:

(1) the effective date of the revocation or the period of the suspension, as applicable;

(2) each reason for the revocation or suspension; and

(3) a statement explaining the person's right to an administrative hearing to determine whether the evidence warrants the revocation or suspension.

(f) To obtain an administrative hearing on a denial, suspension, or revocation under this section, a person must submit a written request for a hearing to the commissioner [director] not later than the 20th day after the date notice is delivered personally or is mailed.

(g) If the commissioner [director] receives a timely request under Subsection (f), the commissioner [director] shall provide the person with an opportunity for a hearing as soon as practicable. A hearing on a revocation or suspension under Subsection (d) that takes effect on receipt of the notice must be held not later than 14 days after the department receives the request for hearing. The revocation or suspension continues in effect until the hearing is completed if the hearing is continued beyond the 14-day period:

(1) at the request of the inspector or inspection station; or

(2) on a finding of good cause by a judge, administrative law judge, or hearing officer.

(h) If the commissioner [director] does not receive a timely request under Subsection (f), the commissioner [director] may deny the application, revoke or suspend a certificate, or sustain the revocation or suspension of a certificate without a hearing.

(j) The commissioner [director] or a person designated by the commissioner [director] shall conduct the hearing and may administer oaths and issue subpoenas for the attendance of witnesses and the production of relevant books, papers, or documents. If the hearing is conducted by a person designated by the commissioner [director], the commissioner [director] may take action under this section on a recommendation of the designated person.

(l) If an administrative law judge of the State Office of Administrative Hearings conducts a hearing under this section and the proposal for decision supports the position of the department, the proposal for decision may recommend a denial of an application or a revocation or suspension of a certificate only. The proposal may not recommend a reprimand or a probated or otherwise deferred disposition of the denial, revocation, or suspension. If the administrative law judge makes a proposal for a decision to deny an application or to suspend or revoke a certificate, the administrative law judge shall include in the proposal a finding of the costs, fees, expenses, and reasonable and necessary attorney's fees the state incurred in bringing the proceeding. The commissioner [director] may adopt the finding for costs, fees, and expenses and make the finding a part of the final order entered in the proceeding. Proceeds collected from a finding made under this subsection shall be paid to the department.

SECTION 3K.06. Section 548.408, Transportation Code, is amended to read as follows:

Sec. 548.408. JUDICIAL REVIEW OF ADMINISTRATIVE ACTION. (a) A person dissatisfied with the final decision of the commissioner [director] may appeal the decision by filing a petition as provided by Subchapter G, Chapter 2001, Government Code.

(b) The district or county attorney or the attorney general shall represent the commissioner [director] in the appeal, except that an attorney who is a full-time employee of the department may represent the commissioner [director] in the appeal with the approval of the attorney general.

(c) The court in which the appeal is filed shall:

(1) set the matter for hearing after 10 days' written notice to the commissioner [director] and the attorney representing the commissioner [director]; and

(2) determine whether an enforcement action of the commissioner [director] shall be suspended pending hearing and enter an order for the suspension.

(d) The court order takes effect when served on the commissioner [director].

(e) The commissioner [director] shall provide a copy of the petition and court order to the attorney representing the commissioner [director].

(f) A stay under this section may not be effective for more than 90 days after the date the petition for appeal is filed. On the expiration of the stay, the commissioner's [director's] enforcement action shall be reinstated or imposed. The department or court may not extend the stay or grant an additional stay.

(g) Judicial review of the final decision of the commissioner [director] is under the substantial evidence rule.

SECTION 3K.07. Section 548.001(4), Transportation Code, is repealed.

PART L. ACCIDENTS AND ACCIDENT REPORTS

SECTION 3L.01. Subchapter A, Chapter 550, Transportation Code, is amended by adding Section 550.002 to read as follows:

Sec. 550.002. TABULATION AND ANALYSIS OF ACCIDENT REPORTS. The department shall:

(1) tabulate and analyze the vehicle accident reports it receives;

(2) annually or more frequently publish statistical information derived from the accident reports as to the number, cause, and location of highway accidents, including information regarding the number of accidents involving injury to, death of, or property damage to a bicyclist or pedestrian; and

(3) not later than December 15 of each even-numbered year provide to the governor and the legislature:

(A) an abstract of the statistical information for the biennium ending on the preceding August 31; and

(B) a report with the department's conclusions, findings, and recommendations for decreasing highway accidents and increasing highway safety.

SECTION 3L.02. Section 550.063, Transportation Code, is amended to read as follows:

Sec. 550.063. REPORT ON APPROPRIATE FORM. The form of all written accident reports must be approved by the department [and the Department of Public Safety]. A person who is required to file a written accident report shall report on the appropriate form and shall disclose all information required by the form unless the information is not available.

SECTION 3L.03. Section 550.0601, Transportation Code, is repealed.

PART M. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT

SECTION 3M.01. Section 601.002(1), Transportation Code, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Public Safety].

SECTION 3M.02. Section 601.233(a), Transportation Code, is amended to read as follows:

(a) A citation for an offense under Section 601.191 issued as a result of Section 601.053 must include, in type larger than other type on the citation, except for the type of the statement required by Section 708.105, the following statement:

"A second or subsequent conviction of an offense under the Texas Motor Vehicle Safety Responsibility Act will result in the suspension of your driver's license and motor vehicle registration unless you file and maintain evidence of financial responsibility with the Texas Department of Motor Vehicles [Public Safety] for two years from the date of conviction. The department may waive the requirement to file evidence of financial responsibility if you file satisfactory evidence with the department showing that at the time this citation was issued, the vehicle was covered by a motor vehicle liability insurance policy or that you were otherwise exempt from the requirements to provide evidence of financial responsibility."

SECTION 3M.03. Section 601.373(b), Transportation Code, is amended to read as follows:

(b) The department may direct a department employee to obtain and send to the department the driver's license and vehicle registration of a person who fails to send the person's license or registration in accordance with Section 601.372. The commissioner [director] of motor vehicles [the department] or the person designated by the commissioner [director] may file a complaint against a person for an offense under Subsection (a).

PART N. GENERAL PROVISIONS RELATING TO VEHICLE SIZE AND WEIGHT

SECTION 3N.01. Section 621.201(a), Transportation Code, is amended to read as follows:

(a) The total width of a vehicle operated on a public highway other than a vehicle to which Subsection (b) applies, including a load on the vehicle but excluding any safety device determined by the United States Department of Transportation or the Texas Department of Motor Vehicles [Public Safety] to be necessary for the safe and efficient operation of motor vehicles of that type, may not be greater than 102 inches.

SECTION 3N.02. Section 621.204(c), Transportation Code, is amended to read as follows:

(c) The limitations prescribed by this section do not include any safety device determined by regulation of the United States Department of Transportation or by rule of the Texas Department of Motor Vehicles [Public Safety] to be necessary for the safe and efficient operation of motor vehicles.

PART O. FOREIGN COMMERCIAL MOTOR TRANSPORTATION

SECTION 3O.01. Section 648.002, Transportation Code, is amended to read as follows:

Sec. 648.002. RULES. In addition to rules required by this chapter, the Texas Department of Transportation, the Texas Department of Motor Vehicles [Public Safety], and the Texas Department of Insurance may adopt other rules to carry out this chapter.

PART P. PROTECTIVE HEADGEAR FOR MOTORCYCLE OPERATORS AND

PASSENGERS

SECTION 3P.01. Section 661.001(2), Transportation Code, is amended to read as follows:

(2) "Department" means the Texas Department of Motor Vehicles [Public Safety].

PART Q. MOTORCYCLE OPERATOR TRAINING AND SAFETY

SECTION 3Q.01. Section 662.011(a), Transportation Code, is amended to read as follows:

(a) Of each fee collected under Sections 521.421(b) and (f), Sections 522.029(f) and (g), and Section 661.003(d), the Texas Department of Motor Vehicles [Public Safety] shall send $5 to the comptroller for deposit to the credit of the motorcycle education fund account.

PART R. ALL-TERRAIN VEHICLES

SECTION 3R.01. Section 663.037(e), Transportation Code, is amended to read as follows:

(e) The commissioner of motor vehicles [director of the Department of Public Safety] shall adopt standards and specifications that apply to the color, size, and mounting position of the flag required under Subsections (d)(2) and (g)(2).

PART S. MISCELLANEOUS PROVISIONS

SECTION 3S.01. Section 680.001(1), Transportation Code, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Public Safety].

PART T. ABANDONED MOTOR VEHICLES

SECTION 3T.01. Section 683.051, Transportation Code, is amended to read as follows:

Sec. 683.051. APPLICATION FOR AUTHORIZATION TO DISPOSE OF CERTAIN MOTOR VEHICLES. A person may apply to the department for authority:

(1) to sell, give away, or dispose of a motor vehicle to a motor vehicle demolisher if:

(A) the person owns the motor vehicle and the certificate of title to the vehicle is lost, destroyed, or faulty; or

(B) the vehicle is an abandoned motor vehicle and is:

(i) in the possession of the person; or

(ii) located on property owned by the person; or

(2) to dispose of a motor vehicle to a motor vehicle demolisher for demolition, wrecking, or dismantling if:

(A) the abandoned motor vehicle:

(i) is in the possession of the person;

(ii) is more than eight years old;

(iii) either has no motor or is otherwise totally inoperable or does not comply with all applicable air pollution emissions control related requirements included in: (aa) the vehicle inspection requirements under Chapter 548, as evidenced by a current inspection certificate affixed to the vehicle windshield; or (bb) the vehicle emissions inspection and maintenance requirements contained in the commissioner of motor vehicle's [Public Safety Commission's] motor vehicle emissions inspection and maintenance program under Subchapter F, Chapter 548, or the state's air quality state implementation plan; and

(iv) was authorized to be towed by a law enforcement agency; and

(B) the law enforcement agency approves the application.

PART U. NONRESIDENT VIOLATOR COMPACT OF 1977

SECTION 3U.01. Section 703.001(2), Transportation Code, is amended to read as follows:

(2) "Department" and "licensing authority" mean the Texas Department of Motor Vehicles [Public Safety].

PART V. DENIAL OF RENEWAL OF LICENSE FOR FAILURE TO APPEAR

SECTION 3V.01. Section 706.001(2), Transportation Code, is amended to read as follows:

(2) "Department" means the Texas Department of Motor Vehicles [Public Safety].

PART W. IMPLIED CONSENT

SECTION 3W.01. Section 724.001(7), Transportation Code, is amended to read as follows:

(7) "Department" means the Texas Department of Motor Vehicles [Public Safety].

SECTION 3W.02. Sections 724.032(a) and (b), Transportation Code, are amended to read as follows:

(a) If a person refuses to submit to the taking of a specimen, whether expressly or because of an intentional failure of the person to give the specimen, the peace officer shall:

(1) serve notice of license suspension or denial on the person;

(2) take possession of any license issued by this state and held by the person arrested;

(3) issue a temporary driving permit to the person unless department records show or the officer otherwise determines that the person does not hold a license to operate a motor vehicle in this state; and

(4) make a written report of the refusal to the commissioner [director] of motor vehicles [the department].

(b) The commissioner [director] must approve the form of the refusal report. The report must:

(1) show the grounds for the officer's belief that the person had been operating a motor vehicle or watercraft powered with an engine having a manufacturer's rating of 50 horsepower or above while intoxicated; and

(2) contain a copy of:

(A) the refusal statement requested under Section 724.031; or

(B) a statement signed by the officer that the person refused to:

(i) submit to the taking of the requested specimen; and

(ii) sign the requested statement under Section 724.031.

ARTICLE 4. CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF

TRANSPORTATION IN OTHER CODES

PART A. BUSINESS & COMMERCE CODE

SECTION 4A.01. Section 51.003(b), Business & Commerce Code, as effective April 1, 2009, is amended to read as follows:

(b) In this chapter, "business opportunity" does not include:

(1) the sale or lease of an established and ongoing business or enterprise that has actively conducted business before the sale or lease, whether composed of one or more than one component business or enterprise, if the sale or lease represents an isolated transaction or series of transactions involving a bona fide change of ownership or control of the business or enterprise or liquidation of the business or enterprise;

(2) a sale by a retailer of goods or services under a contract or other agreement to sell the inventory of one or more ongoing leased departments to a purchaser who is granted the right to sell the goods or services within or adjoining a retail business establishment as a department or division of the retail business establishment;

(3) a transaction that is:

(A) regulated by the Texas Department of Licensing and Regulation, the Texas Department of Insurance, the Texas Real Estate Commission, or the commissioner of motor vehicles [director of the Motor Vehicle Division of the Texas Department of Transportation]; and

(B) engaged in by a person licensed by one of those agencies;

(4) a real estate syndication;

(5) a sale or lease to a business enterprise that also sells or leases products, equipment, or supplies or performs services:

(A) that are not supplied by the seller; and

(B) that the purchaser does not use with the seller's products, equipment, supplies, or services;

(6) the offer or sale of a franchise as described by the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et seq.) and its subsequent amendments;

(7) the offer or sale of a business opportunity if the seller:

(A) has a net worth of $25 million or more according to the seller's audited balance sheet as of a date not earlier than the 13th month before the date of the transaction; or

(B) is at least 80 percent owned by another person who:

(i) in writing unconditionally guarantees performance by the person offering the business opportunity plan; and

(ii) has a net worth of more than $25 million according to the person's most recent audited balance sheet as of a date not earlier than the 13th month before the date of the transaction; or

(8) an arrangement defined as a franchise by 16 C.F.R. Section 436.2(a) and its subsequent amendments if:

(A) the franchisor complies in all material respects in this state with 16 C.F.R. Part 436 and each order or other action of the Federal Trade Commission; and

(B) before offering for sale or selling a franchise in this state, a person files with the secretary of state a notice containing:

(i) the name of the franchisor;

(ii) the name under which the franchisor intends to transact business; and

(iii) the franchisor's principal business address.

SECTION 4A.02. Section 105.004(b), Business & Commerce Code, as effective April 1, 2009, is amended to read as follows:

(b) The Texas Department of Motor Vehicles [Transportation] shall provide a notice that states the provisions of this chapter to each person with a disability who is issued:

(1) license plates under Section 504.201, Transportation Code; or

(2) a disabled parking placard under Section 681.004, Transportation Code.

PART B. CODE OF CRIMINAL PROCEDURE

SECTION 4B.01. Section 1(1), Article 42.22, Code of Criminal Procedure, is amended to read as follows:

(1) "Department" means the Texas Department of Motor Vehicles [Transportation].

SECTION 4B.02. Article 59.04(c), Code of Criminal Procedure, is amended to read as follows:

(c) If the property is a motor vehicle, and if there is reasonable cause to believe that the vehicle has been registered under the laws of this state, the attorney representing the state shall ask the Texas Department of Motor Vehicles [Transportation] to identify from its records the record owner of the vehicle and any interest holder. If the addresses of the owner and interest holder are not otherwise known, the attorney representing the state shall request citation be served on such persons at the address listed with the Texas Department of Motor Vehicles [Transportation]. If the citation issued to such address is returned unserved, the attorney representing the state shall cause a copy of the notice of the seizure and intended forfeiture to be posted at the courthouse door, to remain there for a period of not less than 30 days. If the owner or interest holder does not answer or appear after the notice has been so posted, the court shall enter a judgment by default as to the owner or interest holder, provided that the attorney representing the state files a written motion supported by affidavit setting forth the attempted service. An owner or interest holder whose interest is forfeited in this manner shall not be liable for court costs. If the person in possession of the vehicle at the time of the seizure is not the owner or the interest holder of the vehicle, notification shall be provided to the possessor in the same manner specified for notification to an owner or interest holder.

PART C. FAMILY CODE

SECTION 4C.01. Section 157.316(b), Family Code, is amended to read as follows:

(b) If a lien established under this subchapter attaches to a motor vehicle, the lien must be perfected in the manner provided by Chapter 501, Transportation Code, and the court or Title IV-D agency that rendered the order of child support shall include in the order a requirement that the obligor surrender to the court or Title IV-D agency evidence of the legal ownership of the motor vehicle against which the lien may attach. A lien against a motor vehicle under this subchapter is not perfected until the obligor's title to the vehicle has been surrendered to the court or Title IV-D agency and the Texas Department of Motor Vehicles [Transportation] has issued a subsequent title that discloses on its face the fact that the vehicle is subject to a child support lien under this subchapter.

SECTION 4C.02. Section 232.0022(a), Family Code, is amended to read as follows:

(a) The Texas Department of Motor Vehicles [Transportation] is the appropriate licensing authority for suspension or nonrenewal of a motor vehicle registration under this chapter.

SECTION 4C.03. Section 232.014(b), Family Code, is amended to read as follows:

(b) A fee collected by the Texas Department of Motor Vehicles [Transportation] or the Department of Public Safety shall be deposited to the credit of the state highway fund.

SECTION 4C.04. Section 264.502(b), Family Code, is amended to read as follows:

(b) The members of the committee who serve under Subsections (a)(1) through (3) shall select the following additional committee members:

(1) a criminal prosecutor involved in prosecuting crimes against children;

(2) a sheriff;

(3) a justice of the peace;

(4) a medical examiner;

(5) a police chief;

(6) a pediatrician experienced in diagnosing and treating child abuse and neglect;

(7) a child educator;

(8) a child mental health provider;

(9) a public health professional;

(10) a child protective services specialist;

(11) a sudden infant death syndrome family service provider;

(12) a neonatologist;

(13) a child advocate;

(14) a chief juvenile probation officer;

(15) a child abuse prevention specialist;

(16) a representative of the Department of Public Safety; and

(17) a representative of the Texas Department of Motor Vehicles [Transportation].

PART D. FINANCE CODE

SECTION 4D.01. Section 306.001(9), Finance Code, is amended to read as follows:

(9) "Qualified commercial loan":

(A) means:

(i) a commercial loan in which one or more persons as part of the same transaction lends, advances, borrows, or receives, or is obligated to lend or advance or entitled to borrow or receive, money or credit with an aggregate value of:

(a) $3 million or more if the commercial loan is secured by real property; or

(b) $250,000 or more if the commercial loan is not secured by real property and, if the aggregate value of the commercial loan is less than $500,000, the loan documents contain a written certification from the borrower that:

(1) the borrower has been advised by the lender to seek the advice of an attorney and an accountant in connection with the commercial loan; and

(2) the borrower has had the opportunity to seek the advice of an attorney and accountant of the borrower's choice in connection with the commercial loan; and

(ii) a renewal or extension of a commercial loan described by Paragraph (A), regardless of the principal amount of the loan at the time of the renewal or extension; and

(B) does not include a commercial loan made for the purpose of financing a business licensed by the [Motor Vehicle Board of the] Texas Department of Motor Vehicles [Transportation] under Section 2301.251(a), Occupations Code.

SECTION 4D.02. Section 348.001(10-a), Finance Code, is amended to read as follows:

(10-a) "Towable recreation vehicle" means a nonmotorized vehicle that:

(A) was originally designed and manufactured primarily to provide temporary human habitation in conjunction with recreational, camping, or seasonal use;

(B) is titled and registered with the Texas Department of Motor Vehicles [Transportation] as a travel trailer through a county tax assessor-collector;

(C) is permanently built on a single chassis;

(D) contains at least one life support system; and

(E) is designed to be towable by a motor vehicle.

SECTION 4D.03. Section 348.518, Finance Code, is amended to read as follows:

Sec. 348.518. SHARING OF INFORMATION. To ensure consistent enforcement of law and minimization of regulatory burdens, the commissioner and the Texas Department of Motor Vehicles [Transportation] may share information, including criminal history information, relating to a person licensed under this chapter. Information otherwise confidential remains confidential after it is shared under this section.

PART E. GOVERNMENT CODE

SECTION 4E.01. Section 411.122(d), Government Code, is amended to read as follows:

(d) The following state agencies are subject to this section:

(1) Texas Appraiser Licensing and Certification Board;

(2) Texas Board of Architectural Examiners;

(3) Texas Board of Chiropractic Examiners;

(4) State Board of Dental Examiners;

(5) Texas Board of Professional Engineers;

(6) Texas Funeral Service Commission;

(7) Texas Board of Professional Geoscientists;

(8) Department of State Health Services, except as provided by Section 411.110, and agencies attached to the department, including:

(A) Texas State Board of Examiners of Dietitians;

(B) Texas State Board of Examiners of Marriage and Family Therapists;

(C) Midwifery Board;

(D) Texas State Board of Examiners of Perfusionists;

(E) Texas State Board of Examiners of Professional Counselors;

(F) Texas State Board of Social Worker Examiners;

(G) State Board of Examiners for Speech-Language Pathology and Audiology;

(H) Advisory Board of Athletic Trainers;

(I) State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments;

(J) Texas Board of Licensure for Professional Medical Physicists; and

(K) Texas Board of Orthotics and Prosthetics;

(9) Texas Board of Professional Land Surveying;

(10) Texas Department of Licensing and Regulation, except as provided by Section 411.093;

(11) Texas Commission on Environmental Quality;

(12) Texas Board of Occupational Therapy Examiners;

(13) Texas Optometry Board;

(14) Texas State Board of Pharmacy;

(15) Texas Board of Physical Therapy Examiners;

(16) Texas State Board of Plumbing Examiners;

(17) Texas State Board of Podiatric Medical Examiners;

(18) Polygraph Examiners Board;

(19) Texas State Board of Examiners of Psychologists;

(20) Texas Real Estate Commission;

(21) Board of Tax Professional Examiners;

(22) Texas Department of Transportation;

(23) State Board of Veterinary Medical Examiners;

(24) Texas Department of Housing and Community Affairs;

(25) secretary of state;

(26) state fire marshal;

(27) Texas Education Agency; [and]

(28) Department of Agriculture; and

(29) Texas Department of Motor Vehicles.

SECTION 4E.02. Section 531.02414(c), Government Code, is amended to read as follows:

(c) Notwithstanding any other law, the commission may not delegate the commission's duty to supervise the medical transportation program to any other person, including through a contract with the Texas Department of Motor Vehicles [Transportation] for the department to assume any of the commission's responsibilities relating to the provision of services through that program.

SECTION 4E.03. Section 659.082(a), Government Code, is amended to read as follows:

(a) An employee is entitled to be paid employment compensation twice a month if:

(1) the employee is employed by:

(A) the Texas Department of Mental Health and Mental Retardation;

(B) the Texas Department of Transportation;

(C) the Texas Department of Human Services;

(D) the Texas Workforce Commission;

(E) the Department of Public Safety; [or]

(F) the Texas Department of Motor Vehicles; or

(G) any other state agency designated by the comptroller;

(2) the employee holds a classified position under the state's position classification plan;

(3) the employee's position is classified below salary group A12 under classification salary Schedule A in the General Appropriations Act;

(4) the employing state agency satisfies the comptroller's requirements relating to the payment of compensation twice a month; and

(5) at least 30 percent of the eligible employees of the agency choose to be paid twice a month.

PART F. HEALTH AND SAFETY CODE

SECTION 4F.01. Section 382.209(e), Health and Safety Code, is amended to read as follows:

(e) A vehicle is not eligible to participate in a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program established under this section unless:

(1) the vehicle is capable of being operated;

(2) the registration of the vehicle:

(A) is current; and

(B) reflects that the vehicle has been registered in the county implementing the program for the 12 months preceding the application for participation in the program;

(3) the commissioners court of the county administering the program determines that the vehicle meets the eligibility criteria adopted by the commission, the Texas Department of Motor Vehicles [Transportation], and the Public Safety Commission;

(4) if the vehicle is to be repaired, the repair is done by a repair facility recognized by the Department of Public Safety, which may be an independent or private entity licensed by the state; and

(5) if the vehicle is to be retired under this subsection and Section 382.213, the replacement vehicle is a qualifying motor vehicle.

SECTION 4F.02. Section 382.210(f), Health and Safety Code, is amended to read as follows:

(f) In this section, "total cost" means the total amount of money paid or to be paid for the purchase of a motor vehicle as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Motor Vehicles [Transportation]. In a transaction that does not involve the use of that form, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Title if that form were involved.

SECTION 4F.03. Section 461.017(a), Health and Safety Code, is amended to read as follows:

(a) The Drug Demand Reduction Advisory Committee is composed of the following members:

(1) five representatives of the public from different geographic regions of the state who have knowledge and expertise in issues relating to reducing drug demand and who are appointed by the executive director of the Texas Commission on Alcohol and Drug Abuse; and

(2) one representative of each of the following agencies or offices who is appointed by the executive director or commissioner of the agency or office and who is directly involved in the agency's or office's policies, programs, or funding activities relating to reducing drug demand:

(A) the criminal justice division of the governor's office;

(B) the Criminal Justice Policy Council;

(C) the Department of Protective and Regulatory Services;

(D) the Department of Public Safety of the State of Texas;

(E) the Health and Human Services Commission;

(F) the Texas Alcoholic Beverage Commission;

(G) the Texas Commission on Alcohol and Drug Abuse;

(H) the Texas Council on Offenders with Mental Impairments;

(I) the Texas Department of Criminal Justice;

(J) the Texas Department of Health;

(K) the Texas Department of Human Services;

(L) the Texas Department of Mental Health and Mental Retardation;

(M) the Texas Education Agency;

(N) the Texas Juvenile Probation Commission;

(O) the Texas Youth Commission;

(P) the Texas Rehabilitation Commission;

(Q) the Texas Workforce Commission;

(R) the Texas Department of Motor Vehicles [Transportation];

(S) the comptroller of public accounts; and

(T) the adjutant general's department.

PART G. HUMAN RESOURCES CODE

SECTION 4G.01. Section 22.041, Human Resources Code, is amended to read as follows:

Sec. 22.041. THIRD-PARTY INFORMATION. Notwithstanding any other provision of this code, the department may use information obtained from a third party to verify the assets and resources of a person for purposes of determining the person's eligibility and need for medical assistance, financial assistance, or nutritional assistance. Third-party information includes information obtained from:

(1) a consumer reporting agency, as defined by Section 20.01, Business & Commerce Code;

(2) an appraisal district; or

(3) the Texas Department of Motor Vehicles [Transportation's] vehicle registration record database.

SECTION 4G.02. Section 32.026(g), Human Resources Code, is amended to read as follows:

(g) Notwithstanding any other provision of this code, the department may use information obtained from a third party to verify the assets and resources of a person for purposes of determining the person's eligibility and need for medical assistance. Third-party information includes information obtained from:

(1) a consumer reporting agency, as defined by Section 20.01, Business & Commerce Code;

(2) an appraisal district; or

(3) the Texas Department of Motor Vehicles [Transportation's] vehicle registration record database.

PART H. LOCAL GOVERNMENT CODE

SECTION 4H.01. Section 130.006, Local Government Code, is amended to read as follows:

Sec. 130.006. PROCEDURES FOR COLLECTION OF DISHONORED CHECKS AND INVOICES. A county tax assessor-collector may establish procedures for the collection of dishonored checks and credit card invoices. The procedures may include:

(1) official notification to the maker that the check or invoice has not been honored and that the receipt, registration, certificate, or other instrument issued on the receipt of the check or invoice is not valid until payment of the fee or tax is made;

(2) notification of the sheriff or other law enforcement officers that a check or credit card invoice has not been honored and that the receipt, registration, certificate, or other instrument held by the maker is not valid; and

(3) notification to the Texas Department of Motor Vehicles [Transportation], the comptroller of public accounts, or the Department of Public Safety that the receipt, registration, certificate, or other instrument held by the maker is not valid.

SECTION 4H.02. Section 130.007, Local Government Code, is amended to read as follows:

Sec. 130.007. REMISSION TO STATE NOT REQUIRED; STATE ASSISTANCE IN COLLECTION. (a) If a fee or tax is required to be remitted to the comptroller or the Texas Department of Motor Vehicles [Transportation] and if payment was made to the county tax assessor-collector by a check that was not honored by the drawee bank or by a credit card invoice that was not honored by the credit card issuer, the amount of the fee or tax is not required to be remitted, but the assessor-collector shall notify the appropriate department of:

(1) the amount of the fee or tax;

(2) the type of fee or tax involved; and

(3) the name and address of the maker.

(b) The Texas Department of Motor Vehicles [Transportation] and the comptroller shall assist the county tax assessor-collector in collecting the fee or tax and may cancel or revoke any receipt, registration, certificate, or other instrument issued in the name of the state conditioned on the payment of the fee or tax.

SECTION 4H.03. Section 130.008, Local Government Code, is amended to read as follows:

Sec. 130.008. LIABILITY OF TAX COLLECTOR FOR VIOLATIONS OF SUBCHAPTER. If the comptroller or the Texas Department of Motor Vehicles [Transportation] determines that the county tax assessor-collector has accepted payment for fees and taxes to be remitted to that department in violation of Section 130.004 or that more than two percent of the fees and taxes to be received from the assessor-collector are not remitted because of the acceptance of checks that are not honored by the drawee bank or of credit card invoices that are not honored by the credit card issuer, the department may notify the assessor-collector that the assessor-collector may not accept a check or credit card invoice for the payment of any fee or tax to be remitted to that department. A county tax assessor-collector who accepts a check or credit card invoice for the payment of a fee or tax, after notice that the assessor-collector may not receive a check or credit card invoice for the payment of fees or taxes to be remitted to a department, is liable to the state for the amount of the check or credit card invoice accepted.

SECTION 4H.04. Section 130.009, Local Government Code, is amended to read as follows:

Sec. 130.009. STATE RULES. The comptroller and the Texas Department of Motor Vehicles [Transportation] may make rules concerning the acceptance of checks or credit card invoices by a county tax assessor-collector and for the collection of dishonored checks or credit card invoices.

PART I. OCCUPATIONS CODE

SECTION 4I.01. Section 554.009(c), Occupations Code, is amended to read as follows:

(c) The board may register a vehicle with the Texas Department of Motor Vehicles [Transportation] in an alias name only for investigative personnel.

SECTION 4I.02. Sections 2301.002(7), (9), (16), (17), (17-a), (18), (25), (26), and (31), Occupations Code, are amended to read as follows:

(7) "Dealer" means a person who holds a general distinguishing number issued by the commissioner [board] under Chapter 503, Transportation Code.

(9) "Department" means the Texas Department of Motor Vehicles [Transportation].

(16) "Franchised dealer" means a person who:

(A) holds a franchised motor vehicle dealer's license issued by the commissioner [board] under Chapter 503, Transportation Code; and

(B) is engaged in the business of buying, selling, or exchanging new motor vehicles and servicing or repairing motor vehicles under a manufacturer's warranty at an established and permanent place of business under a franchise in effect with a manufacturer or distributor.

(17) "General distinguishing number" means a dealer license issued by the commissioner [board] under Chapter 503, Transportation Code.

(17-a) "Independent mobility motor vehicle dealer" means a nonfranchised dealer who:

(A) holds a general distinguishing number issued by the commissioner [board] under Chapter 503, Transportation Code;

(B) holds a converter's license issued under this chapter;

(C) is engaged in the business of buying, selling, or exchanging mobility motor vehicles and servicing or repairing the devices installed on mobility motor vehicles at an established and permanent place of business in this state; and

(D) is certified by the manufacturer of each mobility device that the dealer installs, if the manufacturer offers that certification.

(18) "License holder" means a person who holds a license or general distinguishing number issued by the commissioner [board] under this chapter or Chapter 503, Transportation Code.

(25) "Nonfranchised dealer" means a person who holds an independent motor vehicle dealer's general distinguishing number, an independent mobility motor vehicle dealer's general distinguishing number, or a wholesale motor vehicle dealer's general distinguishing number issued by the commissioner [board] under Chapter 503, Transportation Code.

(26) "Party" means a person or agency named or admitted as a party and whose legal rights, duties, or privileges are to be determined by the commissioner [board] after an opportunity for adjudicative hearing.

(31) "Rule":

(A) means a statement by the commissioner [board] of general applicability that:

(i) implements, interprets, or prescribes law or policy; or

(ii) describes the procedure or practice requirements of the commissioner [board];

(B) includes the amendment or repeal of a prior rule; and

(C) does not include a statement regarding only the internal management or organization of the commissioner [board] and not affecting the rights of a person not connected with the commissioner [board].

SECTION 4I.03. The heading to Subchapter C, Chapter 2301, Occupations Code, is amended to read as follows:

SUBCHAPTER C. COMMISSIONER [DIRECTOR] AND OTHER DIVISION PERSONNEL

SECTION 4I.04. Section 2301.101, Occupations Code, is amended to read as follows:

Sec. 2301.101. COMMISSIONER [DIRECTOR]. [(a)] The commissioner [director is the division's chief executive and administrative officer and] shall administer and enforce this chapter.

[(b) The director must be licensed to practice law in this state.

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

SECTION 4I.05. Section 2301.105, Occupations Code, is amended to read as follows:

Sec. 2301.105. CAREER LADDER PROGRAM; PERFORMANCE EVALUATIONS. (a) The commissioner [director] or the commissioner's [director's] designee shall develop an intra-agency career ladder program that addresses opportunities for mobility and advancement of employees in the division. The program must require intra-agency postings of all positions concurrently with any public posting.

(b) The commissioner [director] or the commissioner's [director's] designee shall develop a system of annual performance evaluations based on documented employee performance. All merit pay for employees of the division must be based on the system established under this subsection.

SECTION 4I.06. Section 2301.106(a), Occupations Code, is amended to read as follows:

(a) The commissioner [director] or the commissioner's [director's] designee shall prepare and maintain a written policy statement to ensure implementation of an equal employment opportunity program under which all personnel transactions are made without regard to race, color, disability, sex, religion, age, or national origin. The policy statement must include:

(1) personnel policies, including policies relating to recruitment, evaluation, selection, appointment, training, and promotion of personnel that comply with Chapter 21, Labor Code;

(2) a comprehensive analysis of the division workforce that meets federal and state laws, rules, and regulations and instructions adopted directly under those laws, rules, or regulations;

(3) procedures by which a determination can be made of significant underuse in the division workforce of all persons for whom federal or state laws, rules, and regulations and instructions adopted directly under those laws, rules, or regulations encourage a more equitable balance; and

(4) reasonable methods to appropriately address those areas of significant underuse.

SECTION 4I.07. The heading to Subchapter D, Chapter 2301, Occupations Code, is amended to read as follows:

SUBCHAPTER D. COMMISSIONER [BOARD] POWERS AND DUTIES

SECTION 4I.08. Section 2301.151, Occupations Code, is amended to read as follows:

Sec. 2301.151. GENERAL JURISDICTION OF COMMISSIONER [BOARD]. (a) The commissioner [board] has the exclusive original jurisdiction to regulate those aspects of the distribution, sale, or lease of motor vehicles that are governed by this chapter, including the original jurisdiction to determine its own jurisdiction.

(b) The commissioner [board] may take any action that is specifically designated or implied under this chapter or that is necessary or convenient to the exercise of the power and jurisdiction granted under Subsection (a).

SECTION 4I.09. Section 2301.152, Occupations Code, is amended to read as follows:

Sec. 2301.152. GENERAL DUTIES OF COMMISSIONER [BOARD]. (a) In accordance with this chapter, the commissioner [board] shall:

(1) administer this chapter;

(2) establish the qualifications of license holders;

(3) ensure that the distribution, sale, and lease of motor vehicles is conducted as required by this chapter and commissioner [board] rules;

(4) provide for compliance with warranties; and

(5) prevent fraud, unfair practices, discrimination, impositions, and other abuses in connection with the distribution and sale of motor vehicles.

(b) In addition to the duties delegated to the commissioner [board] under this chapter, the commissioner [board] shall enforce and administer Chapter 503, Transportation Code.

SECTION 4I.10. Section 2301.153, Occupations Code, is amended to read as follows:

Sec. 2301.153. GENERAL POWERS OF COMMISSIONER [BOARD]. (a) Notwithstanding any other provision of law, the commissioner [board] has all powers necessary, incidental, or convenient to perform a power or duty expressly granted under this chapter, including the power to:

(1) initiate and conduct proceedings, investigations, or hearings;

(2) administer oaths;

(3) receive evidence and pleadings;

(4) issue subpoenas to compel the attendance of any person;

(5) order the production of any tangible property, including papers, records, or other documents;

(6) make findings of fact on all factual issues arising out of a proceeding initiated under this chapter;

(7) specify and govern appearance, practice, and procedures before the commissioner [board];

(8) adopt rules and issue conclusions of law and decisions, including declaratory decisions or orders;

(9) enter into contracts;

(10) execute instruments;

(11) retain counsel;

(12) use the services of the attorney general and institute and direct the conduct of legal proceedings in any forum;

(13) obtain other professional services as necessary and convenient;

(14) impose a sanction for contempt;

(15) assess and collect fees and costs, including attorney's fees;

(16) issue, suspend, or revoke licenses;

(17) prohibit and regulate acts and practices in connection with the distribution and sale of motor vehicles or warranty performance obligations;

(18) issue cease and desist orders in the nature of temporary or permanent injunctions;

(19) impose a civil penalty;

(20) enter an order requiring a person to:

(A) pay costs and expenses of a party in connection with an order entered under Section 2301.465;

(B) perform an act other than the payment of money; or

(C) refrain from performing an act; and

(21) enforce a commissioner [board] order.

(b) The commissioner [board] may inspect the books and records of a license holder in connection with the performance of the commissioner's [its] duties under this chapter.

SECTION 4I.11. Section 2301.154, Occupations Code, is amended to read as follows:

Sec. 2301.154. DELEGATION OF POWERS. The commissioner [director] may delegate any of the commissioner's [director's] powers to one or more of the division's employees.

SECTION 4I.12. Section 2301.155, Occupations Code, is amended to read as follows:

Sec. 2301.155. RULES. The authority to adopt rules under this chapter is vested in the commissioner [board]. In accordance with this chapter and the rules, decisions, and orders of the commissioner [board], the commissioner [board] shall adopt rules as necessary or convenient to administer this chapter and to govern practice and procedure before the commissioner [board].

SECTION 4I.13. Section 2301.156, Occupations Code, is amended to read as follows:

Sec. 2301.156. DEPOSIT OF REVENUE. Notwithstanding any other law to the contrary, all money collected by the commissioner [board] under this chapter shall be deposited in the state treasury to the credit of the state highway fund.

SECTION 4I.14. Sections 2301.157(a) and (b), Occupations Code, are amended to read as follows:

(a) Notwithstanding any other law, the commissioner [director or a board member], hearings examiner, or division employee is not personally liable for damages resulting from an official act or omission unless the act or omission constitutes intentional or malicious malfeasance.

(b) The attorney general shall defend a person described by Subsection (a) in an action brought in connection with the act or omission by the person regardless of whether the person serves the commissioner [board] or division in any capacity at the time the action is brought.

SECTION 4I.15. Section 2301.160, Occupations Code, is amended to read as follows:

Sec. 2301.160. TOLLING OF TIME LIMIT DURING MEDIATION. A time limit relating to a commissioner [board] proceeding that is imposed by this chapter on the commissioner [board] or on a dealer is tolled during the pendency of mediation required by this chapter or by a franchise agreement.

SECTION 4I.16. Section 2301.201, Occupations Code, is amended to read as follows:

Sec. 2301.201. PUBLIC INTEREST INFORMATION. (a) The commissioner [director] or the commissioner's [director's] designee shall prepare information describing the functions of the commissioner [board] and the procedures by which complaints or protests are filed with and resolved by the commissioner [board].

(b) The commissioner [board] shall make the information available to the public and appropriate state agencies.

SECTION 4I.17. Section 2301.202, Occupations Code, is amended to read as follows:

Sec. 2301.202. COMPLAINTS; RECORDS. (a) The commissioner [board] shall provide to a person who files a complaint, and to each person that is the subject of the complaint, information about the commissioner's [board's] policies and procedures relating to complaint investigation and resolution.

(b) The commissioner [board] shall keep an information file about each complaint filed with the commissioner [board] that the commissioner [board] has authority to resolve. The commissioner [board] shall keep the following information for each complaint filed by the commissioner [board] for the purpose of enforcing this chapter:

(1) the date the complaint is filed;

(2) the name of the person filing the complaint;

(3) the subject matter of the complaint;

(4) each person contacted in relation to the complaint;

(5) a summary of the results of the review or investigation of the complaint; and

(6) if the commissioner [board] does not take action on the complaint, an explanation of the reasons that action was not taken.

(c) If a written complaint is filed with the commissioner [board] that the commissioner [board] has authority to resolve, the commissioner [board], at least quarterly and until final disposition of the complaint, shall notify the parties to the complaint of the status of the complaint unless the notice would jeopardize an ongoing commissioner [board] investigation.

SECTION 4I.18. Section 2301.203, Occupations Code, is amended to read as follows:

Sec. 2301.203. COMPLAINT INVESTIGATION AND DISPOSITION. (a) If the commissioner [board] has reason to believe, through receipt of a complaint or otherwise, that a violation of this chapter or a rule, order, or decision of the commissioner [board] has occurred or is likely to occur, the commissioner [board] shall conduct an investigation unless the commissioner [it] determines that the complaint is frivolous or for the purpose of harassment.

(b) If the investigation establishes that a violation of this chapter or a rule, order, or decision of the commissioner [board] has occurred or is likely to occur, the commissioner [board] shall initiate proceedings as the commissioner [it] determines appropriate to enforce this chapter or the commissioner's [its] rules, orders, and decisions.

(c) The commissioner [board] may not file a complaint alleging a violation of this chapter or a commissioner [board] rule relating to advertising until the commissioner [board] has notified the license holder involved of the alleged violation and given the license holder an opportunity to cure the violation without further proceedings or liability.

SECTION 4I.19. Section 2301.204(c), Occupations Code, is amended to read as follows:

(c) The owner may also invoke the commissioner's [board's] jurisdiction by sending a copy of the complaint to the commissioner [board].

SECTION 4I.20. Section 2301.205(b), Occupations Code, is amended to read as follows:

(b) The commissioner [board] may require the commissioner's [its] approval of the contents of the notice required by Subsection (a) or may prescribe the contents of the notice.

SECTION 4I.21. Section 2301.206, Occupations Code, is amended to read as follows:

Sec. 2301.206. PUBLIC PARTICIPATION. (a) The commissioner [board] shall develop and implement policies that provide the public with a reasonable opportunity to appear before the commissioner [board] and to speak on any issue under the commissioner's [board's] jurisdiction.

(b) The commissioner [board] shall prepare and maintain a written plan that describes how a person who does not speak English or who has a physical, mental, or developmental disability may be provided reasonable access to the commissioner's [board's] programs.

SECTION 4I.22. Section 2301.257, Occupations Code, is amended to read as follows:

Sec. 2301.257. APPLICATION FOR DEALER'S LICENSE. (a) An application for a dealer's license must be on a form prescribed by the commissioner [board]. The application must include:

(1) the information required by Chapter 503, Transportation Code; and

(2) information relating to the applicant's financial resources, business integrity, business ability and experience, franchise if applicable, physical facilities, vehicle inventory, and other factors the commissioner [board] considers necessary to determine the applicant's qualifications to adequately serve the public.

(b) If a material change occurs in the information included in an application for a dealer's license, the dealer shall notify the commissioner [director] of the change within a reasonable time. The commissioner [director] shall prescribe a form for the disclosure of the change.

(c) A franchised dealer must apply for a separate license under this section for each separate and distinct dealership as determined by the commissioner [board]. Before changing a location, a dealer must obtain a new license for that location.

SECTION 4I.23. Section 2301.258, Occupations Code, is amended to read as follows:

Sec. 2301.258. GENERAL REQUIREMENTS FOR APPLICATION FOR MANUFACTURER'S, DISTRIBUTOR'S, CONVERTER'S, OR REPRESENTATIVE'S LICENSE. An application for a manufacturer's, distributor's, converter's, or representative's license must be on a form prescribed by the commissioner [board]. The application must include information the commissioner [board] determines necessary to fully determine the qualifications of an applicant, including financial resources, business integrity and experience, facilities and personnel for serving franchised dealers, and other information the commissioner [board] determines pertinent to safeguard the public interest and welfare.

SECTION 4I.24. Sections 2301.259(a) and (b), Occupations Code, are amended to read as follows:

(a) An applicant for a manufacturer's license must provide a list of each distributor or representative acting for the applicant and each dealer franchised to sell the applicant's products in this state and their respective locations. An applicant for or holder of a manufacturer's license must inform the commissioner [board] of a change to the list not later than the 15th day after the date of the change. Information submitted under this subsection becomes a part of the application.

(b) An application for a manufacturer's license must include a document stating the terms and conditions of each warranty agreement in effect at the time of the application on a product the manufacturer sells in this state so that the commissioner [board] may determine:

(1) the protection provided a retail purchaser of the manufacturer's products;

(2) the obligation of a franchised dealer under the agreement; and

(3) the basis for compensating a franchised dealer for labor, parts, or other expenses under the agreement.

SECTION 4I.25. Section 2301.260(c), Occupations Code, is amended to read as follows:

(c) An applicant for or holder of a distributor's license must inform the commissioner [board] of a change in the information provided under this section not later than the 15th day after the date of the change. Information submitted under this subsection becomes a part of the application.

SECTION 4I.26. Section 2301.261(a), Occupations Code, is amended to read as follows:

(a) An application for a vehicle lessor's license must:

(1) be on a form prescribed by the commissioner [board];

(2) contain evidence of compliance with Chapter 503, Transportation Code, if applicable; and

(3) state other information required by the commissioner [board].

SECTION 4I.27. Section 2301.262(a), Occupations Code, is amended to read as follows:

(a) An application for a vehicle lease facilitator license must be on a form prescribed by the commissioner [board] and contain the information required by the commissioner [board].

SECTION 4I.28. Section 2301.263, Occupations Code, is amended to read as follows:

Sec. 2301.263. LICENSE ISSUED SUBJECT TO NEW LAW AND RULES. A license issued under this chapter is subject to each provision of this chapter and commissioner [board] rule in effect on the date the license is issued and each provision of this chapter and commissioner [board] rule that takes effect during the term of the license.

SECTION 4I.29. Sections 2301.264(c) and (d), Occupations Code, are amended to read as follows:

(c) The commissioner [board] may prorate the fee for a representative's license to allow the representative's license and the license of the manufacturer or distributor who employs the representative to expire on the same day.

(d) The commissioner [board] may refund from funds appropriated to the commissioner [board] for that purpose a fee collected under this chapter that is not due or that exceeds the amount due.

SECTION 4I.30. Section 2301.266, Occupations Code, is amended to read as follows:

Sec. 2301.266. DUPLICATE LICENSE. The commissioner [board] may:

(1) issue a duplicate license for any license the commissioner [board] issues;

(2) charge a fee for the issuance of a duplicate license; and

(3) adopt rules applicable to the issuance of a duplicate license.

SECTION 4I.31. Sections 2301.301(b) and (d), Occupations Code, are amended to read as follows:

(b) The commissioner [director] may issue a license for a term of less than the period prescribed under Subsection (a) to coordinate the expiration dates of licenses held by a person that is required to obtain more than one license to perform activities under this chapter.

(d) A license renewal may be administratively granted unless a protest is made to the commissioner [board].

SECTION 4I.32. Section 2301.302, Occupations Code, is amended to read as follows:

Sec. 2301.302. NOTICE OF LICENSE EXPIRATION. The commissioner [board] shall notify each person licensed under this chapter of the date of license expiration and the amount of the fee required for license renewal. The notice shall be mailed at least 30 days before the date of license expiration.

SECTION 4I.33. Section 2301.303, Occupations Code, is amended to read as follows:

Sec. 2301.303. RENEWAL OF DEALER'S LICENSE. A dealer shall renew the dealer's license on an application prescribed by the commissioner [director]. The commissioner [director] shall include in the renewal application a request for disclosure of material changes described by Section 2301.257.

SECTION 4I.34. Section 2301.304, Occupations Code, is amended to read as follows:

Sec. 2301.304. PROCEDURE FOR RENEWAL OF CERTAIN LICENSES. The holder of a manufacturer's, distributor's, converter's, or representative's license may apply for a renewal of the license by complying with the application process specified by this chapter and commissioner [board] rule.

SECTION 4I.35. Section 2301.351, Occupations Code, is amended to read as follows:

Sec. 2301.351. GENERAL PROHIBITION. A dealer may not:

(1) violate a commissioner [board] rule;

(2) aid or abet a person who violates this chapter; or

(3) use false, deceptive, or misleading advertising.

SECTION 4I.36. Section 2301.353, Occupations Code, is amended to read as follows:

Sec. 2301.353. PROHIBITION: PERFORMANCE OF OBLIGATION UNDER AGREEMENT WITH MANUFACTURER. A franchised dealer may not fail to perform an obligation placed on:

(1) the selling dealer in connection with the preparation and delivery of a new motor vehicle for retail sale as provided in the manufacturer's preparation and delivery agreements on file with the commissioner [board] that are applicable to the vehicle; or

(2) the dealer in connection with the manufacturer's warranty agreements on file with the commissioner [board].

SECTION 4I.37. Section 2301.354(c), Occupations Code, is amended to read as follows:

(c) If a dispute arises under this section:

(1) the commissioner [board] has exclusive jurisdiction to determine whether a sign complies with this section; and

(2) the commissioner [board] shall uphold an ordinance of a home-rule municipality and protect a franchised dealer from retribution by a manufacturer or distributor for complying with the ordinance.

SECTION 4I.38. Section 2301.356, Occupations Code, is amended to read as follows:

Sec. 2301.356. NOTICE OF CERTAIN PROPOSED CHANGES. A licensed dealer shall promptly notify the commissioner [board] of any proposed change in its ownership, location, franchise, or any other matter the commissioner [board] by rule may require.

SECTION 4I.39. Sections 2301.358(a), (c), and (d), Occupations Code, are amended to read as follows:

(a) A person who holds a license issued under this chapter may not participate in a new motor vehicle show or exhibition unless:

(1) the person provides the commissioner [board] with written notice at least 30 days before the date the show or exhibition opens; and

(2) the commissioner [board] grants written approval.

(c) This section does not prohibit the sale of a towable recreational vehicle, motor home, ambulance, fire-fighting vehicle, or tow truck at a show or exhibition if:

(1) the show or exhibition is approved by the commissioner [board]; and

(2) the sale is not otherwise prohibited by law.

(d) A rule adopted by the commissioner [board] regulating the off-site display or sale of towable recreational vehicles must include a provision that authorizes the display and sale of towable recreational vehicles at a private event in a trade area that would not otherwise qualify for the private event under the application of general participation requirements for organized dealer shows and exhibitions.

SECTION 4I.40. Section 2301.359(c), Occupations Code, is amended to read as follows:

(c) The notice must be accompanied by:

(1) a copy of pertinent agreements regarding the proposed assignment, sale, or transfer;

(2) completed application forms and related information generally used by the manufacturer or distributor in reviewing prospective dealers, if the forms are on file with the commissioner [board]; and

(3) the prospective transferee's written agreement to comply with the franchise to the extent that the franchise is not in conflict with this chapter.

SECTION 4I.41. Section 2301.360, Occupations Code, is amended to read as follows:

Sec. 2301.360. REVIEW BY COMMISSIONER [BOARD] FOLLOWING DENIAL OF TRANSFER. (a) A dealer whose application is rejected under Section 2301.359 may file a protest with the commissioner [board]. A protest filed under this section is a contested case.

(b) In a protest under this section, the commissioner [board] must determine whether the prospective transferee is qualified. The burden is on the manufacturer or distributor to prove that the prospective transferee is not qualified. The commissioner [board] shall enter an order holding that the prospective transferee either is qualified or is not qualified.

(c) If the commissioner's [board's] order is that the prospective transferee is qualified, the dealer's franchise is amended to reflect the change in franchisee, and the manufacturer or distributor shall accept the transfer for all purposes.

(d) If the commissioner's [board's] order is that the prospective transferee is not qualified, the commissioner [board] may include in the order:

(1) specific reasons why the prospective transferee is not qualified; and

(2) specific conditions under which the prospective transferee would be qualified.

(e) If the commissioner's [board's] order that a prospective transferee is not qualified includes specific conditions under which the prospective transferee would be qualified, the commissioner [board] may retain jurisdiction of the dispute for a time certain to allow the dealer and prospective transferee to meet the conditions.

SECTION 4I.42. Section 2301.401(a), Occupations Code, is amended to read as follows:

(a) A manufacturer or distributor shall file with the commissioner [board] a copy of the current requirements the manufacturer or distributor imposes on its dealers with respect to the dealer's:

(1) duties under the manufacturer's or distributor's warranty; and

(2) vehicle preparation and delivery obligations.

SECTION 4I.43. Sections 2301.403(c), (d), and (e), Occupations Code, are amended to read as follows:

(c) A requesting dealer may file a protest with the commissioner [board] if the manufacturer or distributor:

(1) disapproves the request; or

(2) fails to respond within the time required by this section.

(d) After a protest is filed, the commissioner [board] may uphold the manufacturer's or distributor's decision only if the manufacturer or distributor proves by a preponderance of the evidence that the disapproval of the request or failure to respond was reasonable.

(e) If the commissioner [board] does not determine that the disapproval of the request or failure to respond was reasonable, the commissioner [board] shall order the requested rate into effect as of the 60th day after the receipt of the request by the manufacturer or distributor.

SECTION 4I.44. Sections 2301.453(a) and (c) through (h), Occupations Code, are amended to read as follows:

(a) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not terminate or discontinue a franchise with a franchised dealer or directly or indirectly force or attempt to force a franchised dealer to relocate or discontinue a line-make or parts or products related to that line-make unless the manufacturer, distributor, or representative provides notice of the termination or discontinuance as required by Subsection (c) and:

(1) the manufacturer, distributor, or representative receives the dealer's informed written consent;

(2) the appropriate time for the dealer to file a protest under Subsection (e) has expired; or

(3) the commissioner [board] makes a determination of good cause under Subsection (g).

(c) Except as provided by Subsection (d), the manufacturer, distributor, or representative must provide written notice by registered or certified mail to the dealer and the commissioner [board] stating the specific grounds for the termination or discontinuance. The notice must:

(1) be received not later than the 60th day before the effective date of the termination or discontinuance; and

(2) contain on its first page a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE TEXAS DEPARTMENT OF MOTOR VEHICLES [VEHICLE BOARD] IN AUSTIN, TEXAS, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED TERMINATION OR DISCONTINUANCE OF YOUR FRANCHISE UNDER THE TERMS OF CHAPTER 2301, OCCUPATIONS CODE, IF YOU OPPOSE THIS ACTION."

(d) Notice may be provided not later than the 15th day before the effective date of termination or discontinuance if a licensed dealer fails to conduct its customary sales and service operations during its customary business hours for seven consecutive business days. This subsection does not apply if the failure is caused by:

(1) an act of God;

(2) a work stoppage or delay because of a strike or labor dispute;

(3) an order of the commissioner [board]; or

(4) another cause beyond the control of the dealer.

(e) A franchised dealer may file a protest with the commissioner [board] of the termination or discontinuance not later than the latter of:

(1) the 60th day after the date of the receipt of the notice of termination or discontinuance; or

(2) the time specified in the notice.

(f) After a timely protest is filed under Subsection (e), the commissioner [board] shall notify the party seeking the termination or discontinuance that:

(1) a timely protest has been filed;

(2) a hearing is required under this chapter; and

(3) the party may not terminate or discontinue the franchise until the commissioner [board] issues a [its] final order or decision.

(g) After a hearing, the commissioner [board] shall determine whether the party seeking the termination or discontinuance has established by a preponderance of the evidence that there is good cause for the proposed termination or discontinuance.

(h) If a franchise is terminated or discontinued, the manufacturer, distributor, or representative shall establish another franchise in the same line-make within a reasonable time unless it is shown to the commissioner [board] by a preponderance of the evidence that the community or trade area cannot reasonably support such a dealership. If this showing is made, a license may not be issued for a franchised dealer in the same area until a change in circumstances is established.

SECTION 4I.45. Section 2301.454, Occupations Code, is amended to read as follows:

Sec. 2301.454. MODIFICATION OR REPLACEMENT OF FRANCHISE. (a) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not modify or replace a franchise if the modification or replacement would adversely affect to a substantial degree the dealer's sales, investment, or obligations to provide service to the public, unless:

(1) the manufacturer, distributor, or representative provides written notice by registered or certified mail to each affected dealer and the commissioner [board] of the modification or replacement; and

(2) if a protest is filed under this section, the commissioner [board] approves the modification or replacement.

(b) The notice required by Subsection (a)(1) must:

(1) be given not later than the 60th day before the date of the modification or replacement; and

(2) contain on its first page a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE TEXAS DEPARTMENT OF MOTOR VEHICLES [VEHICLE BOARD] IN AUSTIN, TEXAS, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE UNDER THE TERMS OF CHAPTER 2301, OCCUPATIONS CODE, IF YOU OPPOSE THIS ACTION."

(c) A franchised dealer may file a protest with the commissioner [board] of the modification or replacement not later than the latter of:

(1) the 60th day after the date of the receipt of the notice; or

(2) the time specified in the notice.

(d) After a protest is filed, the commissioner [board] shall determine whether the manufacturer, distributor, or representative has established by a preponderance of the evidence that there is good cause for the proposed modification or replacement. The prior franchise continues in effect until the commissioner [board] resolves the protest.

SECTION 4I.46. Section 2301.455(a), Occupations Code, is amended to read as follows:

(a) Notwithstanding the terms of any franchise, in determining whether good cause has been established under Section 2301.453 or 2301.454, the commissioner [board] shall consider all existing circumstances, including:

(1) the dealer's sales in relation to the sales in the market;

(2) the dealer's investment and obligations;

(3) injury or benefit to the public;

(4) the adequacy of the dealer's service facilities, equipment, parts, and personnel in relation to those of other dealers of new motor vehicles of the same line-make;

(5) whether warranties are being honored by the dealer;

(6) the parties' compliance with the franchise, except to the extent that the franchise conflicts with this chapter; and

(7) the enforceability of the franchise from a public policy standpoint, including issues of the reasonableness of the franchise's terms, oppression, adhesion, and the parties' relative bargaining power.

SECTION 4I.47. Section 2301.460, Occupations Code, is amended to read as follows:

Sec. 2301.460. WARRANTY, PREPARATION, OR DELIVERY AGREEMENT OBLIGATIONS. Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not, after a complaint and a hearing, fail or refuse to perform an obligation placed on the manufacturer in connection with the preparation, delivery, and warranty of a new motor vehicle as provided in the manufacturer's warranty, preparation, and delivery agreements on file with the commissioner [board].

SECTION 4I.48. Section 2301.461(a), Occupations Code, is amended to read as follows:

(a) Notwithstanding the terms of any franchise or any other law, a franchised dealer's preparation, delivery, and warranty obligations as filed with the commissioner [board] are the dealer's sole responsibility for product liability as between the dealer and a manufacturer or distributor.

SECTION 4I.49. Section 2301.462(b), Occupations Code, is amended to read as follows:

(b) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may refuse to honor a succession if, after notice and hearing, it is shown to the commissioner [board] that the result of the succession will be detrimental to the public interest and to the representation of the manufacturer or distributor.

SECTION 4I.50. Sections 2301.464(a) and (c), Occupations Code, are amended to read as follows:

(a) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not deny or withhold approval of a written application to relocate a franchise unless:

(1) the applicant receives written notice of the denial or withholding of approval not later than the 60th day after the date the application is received; and

(2) if the applicant files a protest with the commissioner [board], the commissioner [board] makes a determination of reasonable grounds under this section.

(c) If the applicant files a protest under Subsection (a)(2), the commissioner [board] shall hold a hearing. After the hearing, the commissioner [board] shall determine whether the manufacturer or distributor has established by a preponderance of the evidence that the grounds for the denial or withholding of approval of the relocation are reasonable.

SECTION 4I.51. Section 2301.466(b), Occupations Code, is amended to read as follows:

(b) An arbitrator shall apply this chapter in resolving a controversy. Either party may appeal to the commissioner [board] a decision of an arbitrator on the ground that the arbitrator failed to apply this chapter.

SECTION 4I.52. Section 2301.472, Occupations Code, is amended to read as follows:

Sec. 2301.472. ADDITION OF LINE-MAKE. (a) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not deny or withhold approval of a franchised dealer's application to add a line-make or parts or products related to that line-make unless:

(1) the manufacturer or distributor provides written notice of the denial or withholding of approval to the applicant not later than the 60th day after the date the application is received; and

(2) if the applicant files a protest under this section, the commissioner [board] upholds the denial or withholding of approval.

(b) After receiving notice under Subsection (a)(1), a dealer may file a protest with the commissioner [board].

(c) If the dealer files a protest, the commissioner [board] may uphold the manufacturer's or distributor's decision to deny or withhold approval of the addition of the line-make only if the manufacturer or distributor establishes by a preponderance of the evidence that the denial or withholding of approval was reasonable.

(d) In determining whether a manufacturer or distributor has established that the denial or withholding of approval is reasonable, the commissioner [board] shall consider all existing circumstances, including:

(1) the dealer's sales in relation to the sales in the market;

(2) the dealer's investment and obligations;

(3) injury or benefit to the public;

(4) the adequacy of the dealer's sales and service facilities, equipment, parts, and personnel in relation to those of other dealers of new motor vehicles of the same line-make;

(5) whether warranties are being honored by the dealer agreement;

(6) the parties' compliance with the franchise, except to the extent that the franchise conflicts with this chapter;

(7) the enforceability of the franchise from a public policy standpoint, including issues of the reasonableness of the franchise's terms, oppression, adhesion, and the parties' relative bargaining power;

(8) whether the dealer complies with reasonable capitalization requirements or will be able to comply with reasonable capitalization requirements within a reasonable time;

(9) any harm to the manufacturer if the denial or withholding of approval is not upheld; and

(10) any harm to the dealer if the denial or withholding of approval is upheld.

SECTION 4I.53. Section 2301.476(e), Occupations Code, is amended to read as follows:

(e) On a showing of good cause by a manufacturer or distributor, the commissioner [board] may extend the time limit imposed under Subsection (d) for a period not to exceed an additional 12 months. An application for an extension after the first extension is granted is subject to protest by a dealer of the same line-make whose dealership is located in the same county as, or within 15 miles of, the dealership owned or controlled by the manufacturer or distributor.

SECTION 4I.54. Sections 2301.522(a), (b), and (d), Occupations Code, are amended to read as follows:

(a) In an action brought against a manufacturer or distributor under Sections 2301.451-2301.474 by a franchised dealer whose franchise provides for arbitration in compliance with this chapter, the commissioner [board] shall order the parties to submit the dispute to mediation in the manner provided by this subchapter.

(b) Subsection (a) applies only if the dealer's franchise does not contain an arbitration provision in conflict with this chapter. In a dispute concerning whether Subsection (a) applies, the commissioner [board] shall enter an order either that the franchise contains a provision in conflict with this chapter or that it does not. If the commissioner [board] determines that the franchise does not contain an arbitration provision that conflicts with this chapter, the commissioner [board] shall order the parties to proceed to mediation as provided by this subchapter.

(d) This subchapter does not apply to an action brought by the commissioner [board] to enforce this chapter.

SECTION 4I.55. Section 2301.524(c), Occupations Code, is amended to read as follows:

(c) Mediation must be completed not later than the 60th day after the date the commissioner [board] orders the parties to mediate. The deadline may be extended by the commissioner [board] at the request of all parties.

SECTION 4I.56. Section 2301.525(b), Occupations Code, is amended to read as follows:

(b) If Section 154.073, Civil Practice and Remedies Code, conflicts with another legal requirement for disclosure of communications or materials, the issue of confidentiality may be presented to the commissioner [board] to determine, in camera, whether the facts, circumstances, and context of the communications or materials sought to be disclosed warrant a protective order of the commissioner [board] or whether the communications or materials are subject to disclosure.

SECTION 4I.57. Section 2301.526(a), Occupations Code, is amended to read as follows:

(a) The commissioner [board] is not liable for the compensation paid or to be paid to a mediator employed under this subchapter.

SECTION 4I.58. Section 2301.527, Occupations Code, is amended to read as follows:

Sec. 2301.527. JURISDICTION OF COMMISSIONER [BOARD]. The commissioner [board] retains jurisdiction of the subject matter of and parties to a dispute during mediation and may, on the motion of a party or on the commissioner's [its] own motion, enter appropriate orders.

SECTION 4I.59. Sections 2301.528(a) and (d), Occupations Code, are amended to read as follows:

(a) Except as provided by this subchapter, mediation under this subchapter does not affect a procedural right or duty conferred by this chapter or by commissioner [board] rule.

(d) The commissioner [board] shall stay proceedings involving the parties in mediation until the commissioner [board] receives the mediator's certification that mediation has concluded.

SECTION 4I.60. Section 2301.529, Occupations Code, is amended to read as follows:

Sec. 2301.529. OUTCOME OF MEDIATION. (a) If mediation resolves the dispute, the commissioner [board] shall enter an order incorporating the terms of the agreement reached in mediation.

(b) If mediation does not resolve the dispute, the commissioner [board] shall proceed to a contested case hearing or other appropriate exercise of its jurisdiction.

SECTION 4I.61. Section 2301.552(b), Occupations Code, is amended to read as follows:

(b) An appointment must:

(1) be in writing;

(2) disclose its terms; and

(3) comply with commissioner [board] rules.

SECTION 4I.62. Section 2301.554(b), Occupations Code, is amended to read as follows:

(b) In the interests of justice and giving deference to standard national business practices, the commissioner [board] may adopt a rule by which a lease may prohibit the lessee from taking the vehicle into a specific foreign country regardless of whether the lease prohibits the lessee from taking the vehicle into another foreign country. In adopting a rule under this subsection the commissioner [board] shall give consideration to the proximity of international borders to prospective Texas lessees.

SECTION 4I.63. Section 2301.602, Occupations Code, is amended to read as follows:

Sec. 2301.602. DUTY OF COMMISSIONER [BOARD]. (a) The commissioner [board] shall cause a manufacturer, converter, or distributor to perform an obligation imposed by this subchapter.

(b) The commissioner [board] shall adopt rules for the enforcement and implementation of this subchapter.

SECTION 4I.64. Section 2301.604(c), Occupations Code, is amended to read as follows:

(c) As necessary to promote the public interest, the commissioner [board] by rule:

(1) shall define the incidental costs that are eligible for reimbursement;

(2) shall specify other requirements necessary to determine an eligible cost; and

(3) may set a maximum amount that is eligible for reimbursement, either by type of eligible cost or by a total for all costs.

SECTION 4I.65. Sections 2301.606(a), (b), and (c), Occupations Code, are amended to read as follows:

(a) The commissioner [director] under commissioner [board] rules shall conduct hearings and issue final orders for the implementation and enforcement of this subchapter. [An order issued by the director under this subchapter is considered a final order of the board.]

(b) In a hearing before the commissioner [director] under this subchapter, a manufacturer, converter, or distributor may plead and prove as an affirmative defense to a remedy under this subchapter that a nonconformity:

(1) is the result of abuse, neglect, or unauthorized modification or alteration of the motor vehicle; or

(2) does not substantially impair the use or market value of the motor vehicle.

(c) The commissioner [director] may not issue an order requiring a manufacturer, converter, or distributor to make a refund or to replace a motor vehicle unless:

(1) the owner or a person on behalf of the owner has mailed written notice of the alleged defect or nonconformity to the manufacturer, converter, or distributor; and

(2) the manufacturer, converter, or distributor has been given an opportunity to cure the alleged defect or nonconformity.

SECTION 4I.66. Section 2301.607(c), Occupations Code, is amended to read as follows:

(c) If the administrative law judge does not issue a proposal for decision and recommend to the commissioner [director] a final order before the 151st day after the date a complaint is filed under this subchapter, the commissioner [director] shall provide written notice by certified mail to the complainant and to the manufacturer, converter, or distributor of the expiration of the 150-day period and of the complainant's right to file a civil action. The commissioner [board] shall extend the 150-day period if a delay is requested or caused by the person who filed the complaint.

SECTION 4I.67. Section 2301.608, Occupations Code, is amended to read as follows:

Sec. 2301.608. ASSESSMENT OF COSTS FOR REPLACEMENT OR REFUND. (a) In an order issued under this subchapter, the commissioner [director] shall name the person responsible for paying the cost of any refund or replacement. A manufacturer, converter, or distributor may not cause a franchised dealer to directly or indirectly pay any money not specifically ordered by the commissioner [director].

(b) If the commissioner [director] orders a manufacturer, converter, or distributor to make a refund or replace a motor vehicle under this subchapter, the commissioner [director] may order the franchised dealer to reimburse the owner, lienholder, manufacturer, converter, or distributor only for an item or option added to the vehicle by the dealer to the extent that the item or option contributed to the defect that served as the basis for the order.

(c) In a case involving a leased vehicle, the commissioner [director] may terminate the lease and apportion allowances or refunds, including the reasonable allowance for use, between the lessee and lessor of the vehicle.

SECTION 4I.68. Section 2301.609(a), Occupations Code, is amended to read as follows:

(a) A party to a proceeding before the commissioner [director] under this subchapter that is affected by a final order of the commissioner [director] is entitled to judicial review of the order under the substantial evidence rule in a district court of Travis County.

SECTION 4I.69. Sections 2301.610(a), (c), and (d), Occupations Code, are amended to read as follows:

(a) A manufacturer, distributor, or converter that has been ordered to repurchase or replace a vehicle shall, through its franchised dealer, issue a disclosure statement stating that the vehicle was repurchased or replaced by the manufacturer, distributor, or converter under this subchapter. The statement must accompany the vehicle through the first retail purchase following the issuance of the statement and must include the commissioner's [board's] toll-free telephone number that will enable the purchaser to obtain information about the condition or defect that was the basis of the order for repurchase or replacement.

(c) The commissioner [board] shall adopt rules for the enforcement of this section.

(d) The commissioner [board] shall maintain a toll-free telephone number to provide information to a person who requests information about a condition or defect that was the basis for repurchase or replacement by an order of the commissioner [director]. The commissioner [board] shall maintain an effective method of providing information to a person who makes a request.

SECTION 4I.70. Sections 2301.611(a) and (c), Occupations Code, are amended to read as follows:

(a) The commissioner [board] shall publish an annual report on the motor vehicles ordered repurchased or replaced under this subchapter.

(c) The commissioner [board] shall make the report available to the public and may charge a reasonable fee to cover the cost of the report.

SECTION 4I.71. Section 2301.612, Occupations Code, is amended to read as follows:

Sec. 2301.612. OPEN RECORDS EXCEPTION. Information filed with the commissioner [board] under this subchapter is not a public record and is not subject to release under Chapter 552, Government Code, until the complaint is finally resolved by order of the commissioner [board].

SECTION 4I.72. Section 2301.613(a), Occupations Code, is amended to read as follows:

(a) The commissioner [board] shall prepare, publish, and distribute information concerning an owner's rights under this subchapter. The retail seller of a new motor vehicle shall conspicuously post a copy of the information in the area where its customers usually pay for repairs.

SECTION 4I.73. Sections 2301.651(a), (b), and (d), Occupations Code, are amended to read as follows:

(a) The commissioner [board] may deny an application for a license, revoke or suspend a license, place on probation a person whose license has been suspended, or reprimand a license holder if the applicant or license holder:

(1) is unfit under standards described in this chapter or commissioner [board] rules;

(2) makes a material misrepresentation in any application or other information filed under this chapter or commissioner [board] rules;

(3) violates this chapter or a commissioner [board] rule or order;

(4) violates any law relating to the sale, distribution, financing, or insuring of motor vehicles;

(5) fails to maintain the qualifications for a license;

(6) wilfully defrauds a purchaser;

(7) fails to fulfill a written agreement with a retail purchaser of a motor vehicle; or

(8) violates the requirements of Section 503.0631, Transportation Code.

(b) The commissioner [board] may take action under Subsection (a) against an applicant or license holder for an act or omission by an officer, director, partner, trustee, or other person acting in a representative capacity for the applicant or license holder that would be cause for denying, revoking, or suspending a license under this chapter.

(d) A license may not be denied, revoked, or suspended, and disciplinary action may not be taken under this subchapter, except on order of the commissioner [board] after a hearing.

SECTION 4I.74. Section 2301.652(a), Occupations Code, is amended to read as follows:

(a) The commissioner [board] may deny an application for a license to establish a dealership if, following a protest, the applicant fails to establish good cause for establishing the dealership. In determining good cause, the commissioner [board] shall consider:

(1) whether the manufacturer or distributor of the same line-make of new motor vehicle is being adequately represented as to sales and service;

(2) whether the protesting franchised dealer representing the same line-make of new motor vehicle is in substantial compliance with the dealer's franchise, to the extent that the franchise is not in conflict with this chapter;

(3) the desirability of a competitive marketplace;

(4) any harm to the protesting franchised dealer; and

(5) the public interest.

SECTION 4I.75. Section 2301.654, Occupations Code, is amended to read as follows:

Sec. 2301.654. PROBATION. If a suspension of a license is probated, the commissioner [board] may:

(1) require the license holder to report regularly to the commissioner [board] on matters that are the basis of the probation; or

(2) limit activities to those prescribed by the commissioner [board].

SECTION 4I.76. Sections 2301.7025(a) and (b), Occupations Code, are amended to read as follows:

(a) This section does not apply to:

(1) an action with respect to which this chapter or rules of the commissioner [board] establish specific procedural time limits; or

(2) an action brought under Section 2301.204.

(b) Except as provided by this section, a license holder may not file an action with the commissioner [board] after the fourth anniversary of the date the action accrues.

SECTION 4I.77. Section 2301.703(a), Occupations Code, is amended to read as follows:

(a) A hearing shall be conducted in any contested case arising under this chapter or a commissioner [board] rule. The hearing must be conducted in accordance with this chapter, any order, decision, or rule of the commissioner [board], and Chapter 2001, Government Code.

SECTION 4I.78. Section 2301.704(b), Occupations Code, is amended to read as follows:

(b) An administrative law judge has all of the commissioner's [board's] power and authority under this chapter to conduct hearings, including the power to:

(1) hold a hearing;

(2) administer an oath;

(3) receive pleadings and evidence;

(4) issue a subpoena to compel the attendance of a witness;

(5) compel the production of papers and documents;

(6) issue an interlocutory order, including a cease and desist order in the nature of a temporary restraining order or a temporary injunction;

(7) make findings of fact and conclusions of law; and

(8) issue a proposal for decision and recommend a final order.

SECTION 4I.79. Section 2301.705(a), Occupations Code, is amended to read as follows:

(a) Notice of a contested case hearing involving a license holder must be given in accordance with this chapter and commissioner [board] rules.

SECTION 4I.80. Section 2301.706, Occupations Code, is amended to read as follows:

Sec. 2301.706. NOTICE OF RULEMAKING HEARING. Notice of a rulemaking hearing must be given in accordance with Chapter 2001, Government Code, and commissioner [board] rules before the 30th day preceding the date of the hearing.

SECTION 4I.81. Section 2301.709, Occupations Code, is amended to read as follows:

Sec. 2301.709. PROPOSED DECISION; REVIEW BY COMMISSIONER [BOARD]. (a) In a contested case, the administrative law judge shall serve on each party a copy of the administrative law judge's proposal for decision and recommended order containing findings of fact and conclusions of law. A party may file exceptions and replies to the commissioner [board].

(b) In reviewing the case, the commissioner [board] may consider only materials that are submitted timely.

(c) The commissioner [board] may hear such oral argument from any party as the commissioner [board] may allow.

(d) The commissioner [board] shall take any further action conducive to the issuance of a final order and shall issue a written final decision or order. [A majority vote of a quorum of the board is required to adopt a final decision or order of the board.]

SECTION 4I.82. Section 2301.710, Occupations Code, is amended to read as follows:

Sec. 2301.710. DISMISSAL OF COMPLAINT. On the motion of any party, the commissioner [board], without holding a contested case hearing, may issue a final order dismissing a complaint, protest, or response in accordance with the terms and procedures set forth in Rule 166a, Texas Rules of Civil Procedure, or its successor.

SECTION 4I.83. Section 2301.711, Occupations Code, is amended to read as follows:

Sec. 2301.711. ORDERS AND DECISIONS. (a) An order or decision of the commissioner [board] must:

(1) include a separate finding of fact with respect to each specific issue the commissioner [board] is required by law to consider in reaching a decision;

(2) set forth additional findings of fact and conclusions of law on which the order or decision is based; and

(3) give the reasons for the particular actions taken.

(b) Except as provided by Subchapter M, the order or decision must:

(1) be signed by the commissioner [presiding officer or assistant presiding officer for the board];

(2) be attested to by the commissioner [director]; and

(3) have the seal affixed to it.

SECTION 4I.84. Section 2301.712(b), Occupations Code, is amended to read as follows:

(b) If a person who brings a complaint under Subchapter M prevails in the case, the commissioner [board] shall order the nonprevailing party in the case to reimburse the amount of the filing fee for the case.

SECTION 4I.85. Section 2301.751(a), Occupations Code, is amended to read as follows:

(a) A party to a proceeding affected by a final order, rule, or decision or other final action of the commissioner [board or director] under this chapter or under another law with respect to a matter arising under this chapter may seek judicial review of the action under the substantial evidence rule in:

(1) a district court in Travis County; or

(2) the court of appeals for the Third Court of Appeals District.

SECTION 4I.86. Section 2301.752(b), Occupations Code, is amended to read as follows:

(b) Citation for an appeal must be served on the commissioner [director] and each party of record in the matter. For an appeal initiated in the court of appeals, the court shall cause the citation to be issued.

SECTION 4I.87. Section 2301.753, Occupations Code, is amended to read as follows:

Sec. 2301.753. ADDITIONAL EVIDENCE. An appeal in which evidence outside the record of the commissioner [board] is to be taken under Chapter 2001, Government Code, or otherwise, shall be brought in a district court in Travis County or in the court of appeals. An appeal brought in the court of appeals is subject to remand to a district court in Travis County for proceedings under instructions from the court of appeals.

SECTION 4I.88. Section 2301.755, Occupations Code, is amended to read as follows:

Sec. 2301.755. EFFECT OF APPEAL ON ORDER. An appeal under this subchapter does not affect the enforcement of a final commissioner [board] order unless:

(1) the enforcement of the order is enjoinable under Chapter 65, Civil Practice and Remedies Code, and under principles of primary jurisdiction; or

(2) the commissioner [board], in the interest of justice, suspends the enforcement of the order pending final determination of the appeal.

SECTION 4I.89. Sections 2301.801(a) and (b), Occupations Code, are amended to read as follows:

(a) If, after a proceeding under this chapter and commissioner [board] rules, the commissioner [board] determines that a person is violating or has violated this chapter, a rule adopted or order issued under this chapter, or Section 503.038(a), Transportation Code, the commissioner [board] may impose a civil penalty. The amount of the penalty may not exceed $10,000 for each violation. Each act of violation and each day a violation continues is a separate violation.

(b) In determining the amount of the penalty, the commissioner [board] shall consider:

(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited act, and the harm or potential harm to the safety of the public;

(2) the economic damage to the public caused by the violation;

(3) the history of previous violations;

(4) the amount necessary to deter a future violation;

(5) efforts to correct the violation; and

(6) any other matter that justice may require.

SECTION 4I.90. Section 2301.802, Occupations Code, is amended to read as follows:

Sec. 2301.802. CEASE AND DESIST ORDER. (a) If it appears to the commissioner [board] that a person is violating this chapter or a commissioner [board] rule or order, the commissioner [board] after notice may require the person engaged in the conduct to appear and show cause why a cease and desist order should not be issued prohibiting the conduct described in the notice.

(b) An interlocutory cease and desist order may be granted with or without bond or other undertaking if:

(1) the order is necessary to the performance of the duties delegated to the commissioner [board] by this chapter;

(2) the order is necessary or convenient to maintaining the status quo between two or more adverse parties before the commissioner [board];

(3) a party before the commissioner [board] is entitled to relief demanded of the commissioner [board] and all or part of the relief requires the restraint of some act prejudicial to the party;

(4) a person is performing, about to perform, or procuring or allowing the performance of an act:

(A) relating to the subject of a contested case pending before the commissioner [board], in violation of the rights of a party before the commissioner [board]; and

(B) that would tend to render the commissioner's [board's] order in the case ineffectual; or

(5) substantial injury to the rights of a person subject to the commissioner's [board's] jurisdiction is threatened regardless of any remedy available at law.

(c) A proceeding under this section is governed by:

(1) this chapter and the commissioner's [board's] rules; and

(2) Chapter 2001, Government Code, relating to a contested case, to the extent that chapter is not in conflict with Subdivision (1).

(d) An interlocutory cease and desist order remains in effect until vacated or incorporated in a final order of the commissioner [board]. An appeal of an interlocutory cease and desist order must be made to the commissioner [board] before seeking judicial review as provided by this chapter.

(e) A permanent cease and desist order may be issued regardless of the requirements of Subsection (b) but only under the procedures for a final order by the commissioner [board] under this chapter. An appeal of a permanent cease and desist order is made in the same manner as an appeal of a final order under this chapter.

SECTION 4I.91. Sections 2301.803(a) and (c), Occupations Code, are amended to read as follows:

(a) On the initiation of a commissioner [board] proceeding, whether by complaint, protest, or otherwise, a person who receives notice from the commissioner [board] of a statutory stay imposed by this chapter may not allow or commit any act or omission that would:

(1) violate this chapter or any rule, order, or decision of the commissioner [board];

(2) affect a legal right, duty, or privilege of any party before the commissioner [board]; or

(3) tend to render ineffectual a commissioner [board] order in a pending proceeding.

(c) A person affected by a statutory stay imposed by this chapter may initiate a proceeding before the commissioner [board] to modify, vacate, or clarify the extent and application of the statutory stay.

SECTION 4I.92. Sections 2301.804(a) and (b), Occupations Code, are amended to read as follows:

(a) If it appears that a person has violated, is violating, or is threatening to violate this chapter or a commissioner [board] rule or order, the commissioner [board or the director, if authorized by the board,] may cause a suit to be instituted in a court for:

(1) injunctive relief to restrain the person from committing the violation or threat of violation;

(2) imposition of a civil penalty; or

(3) both injunctive relief and a civil penalty.

(b) At the request of the commissioner [board or the director, if authorized by the board], the attorney general shall bring in the name of the state a suit for an injunction or a civil penalty as described by Subsection (a).

SECTION 4I.93. Section 2301.805(b), Occupations Code, is amended to read as follows:

(b) In an action brought under this section, and in the interest of judicial economy and efficiency, a judgment entered in the action must give deference to the findings of fact and conclusions of law of the commissioner [board] contained in any final order that is the basis of the action.

SECTION 4I.94. Section 2301.806, Occupations Code, is amended to read as follows:

Sec. 2301.806. COMMISSIONER [BOARD] EXEMPT FROM FILING FEE. Notwithstanding the other provisions of this chapter, the commissioner [board] is not required to pay a filing fee when filing a complaint or other enforcement action.

SECTION 4I.95. Section 2305.007(a), Occupations Code, is amended to read as follows:

(a) Except as provided by Subsection (b), for the purpose of enforcing or administering this chapter, Chapter 2302 of this code, or Chapter 501 or 502, Transportation Code, a member of the Texas Transportation Commission, an employee of the Texas Transportation Commission or Texas Department of Transportation, an employee of the Texas Department of Motor Vehicles, a member of the Public Safety Commission, an officer of the Department of Public Safety, or another peace officer who is interested in tracing or locating a stolen motor vehicle may at a reasonable time:

(1) enter the premises of a business regulated under one of those chapters; and

(2) inspect or copy any document, record, vehicle, part, or other item regulated under one of those chapters.

SECTION 4I.96. Section 2308.252(b), Occupations Code, is amended to read as follows:

(b) A parking facility owner is considered to have given notice under Subsection (a)(3) if:

(1) a conspicuous notice has been attached to the vehicle's front windshield or, if the vehicle has no front windshield, to a conspicuous part of the vehicle stating:

(A) that the vehicle is in a parking space in which the vehicle is not authorized to be parked;

(B) a description of all other unauthorized areas in the parking facility;

(C) that the vehicle will be towed at the expense of the owner or operator of the vehicle if it remains in an unauthorized area of the parking facility; and

(D) a telephone number that is answered 24 hours a day to enable the owner or operator of the vehicle to locate the vehicle; and

(2) a notice is mailed after the notice is attached to the vehicle as provided by Subdivision (1) to the owner of the vehicle by certified mail, return receipt requested, to the last address shown for the owner according to the vehicle registration records of the Texas Department of Motor Vehicles [Transportation], or if the vehicle is registered in another state, the appropriate agency of that state.

SECTION 4I.97. The following sections of the Occupations Code are repealed:

(1) Sections 2301.002(2), (10), and (13); and

(2) Section 2301.005.

PART J. PENAL CODE

SECTION 4J.01. Section 31.03(c), Penal Code, is amended to read as follows:

(c) For purposes of Subsection (b):

(1) evidence that the actor has previously participated in recent transactions other than, but similar to, that which the prosecution is based is admissible for the purpose of showing knowledge or intent and the issues of knowledge or intent are raised by the actor's plea of not guilty;

(2) the testimony of an accomplice shall be corroborated by proof that tends to connect the actor to the crime, but the actor's knowledge or intent may be established by the uncorroborated testimony of the accomplice;

(3) an actor engaged in the business of buying and selling used or secondhand personal property, or lending money on the security of personal property deposited with the actor, is presumed to know upon receipt by the actor of stolen property (other than a motor vehicle subject to Chapter 501, Transportation Code) that the property has been previously stolen from another if the actor pays for or loans against the property $25 or more (or consideration of equivalent value) and the actor knowingly or recklessly:

(A) fails to record the name, address, and physical description or identification number of the seller or pledgor;

(B) fails to record a complete description of the property, including the serial number, if reasonably available, or other identifying characteristics; or

(C) fails to obtain a signed warranty from the seller or pledgor that the seller or pledgor has the right to possess the property. It is the express intent of this provision that the presumption arises unless the actor complies with each of the numbered requirements;

(4) for the purposes of Subdivision (3)(A), "identification number" means driver's license number, military identification number, identification certificate, or other official number capable of identifying an individual;

(5) stolen property does not lose its character as stolen when recovered by any law enforcement agency;

(6) an actor engaged in the business of obtaining abandoned or wrecked motor vehicles or parts of an abandoned or wrecked motor vehicle for resale, disposal, scrap, repair, rebuilding, demolition, or other form of salvage is presumed to know on receipt by the actor of stolen property that the property has been previously stolen from another if the actor knowingly or recklessly:

(A) fails to maintain an accurate and legible inventory of each motor vehicle component part purchased by or delivered to the actor, including the date of purchase or delivery, the name, age, address, sex, and driver's license number of the seller or person making the delivery, the license plate number of the motor vehicle in which the part was delivered, a complete description of the part, and the vehicle identification number of the motor vehicle from which the part was removed, or in lieu of maintaining an inventory, fails to record the name and certificate of inventory number of the person who dismantled the motor vehicle from which the part was obtained;

(B) fails on receipt of a motor vehicle to obtain a certificate of authority, sales receipt, or transfer document as required by Chapter 683, Transportation Code, or a certificate of title showing that the motor vehicle is not subject to a lien or that all recorded liens on the motor vehicle have been released; or

(C) fails on receipt of a motor vehicle to immediately remove an unexpired license plate from the motor vehicle, to keep the plate in a secure and locked place, or to maintain an inventory, on forms provided by the Texas Department of Motor Vehicles [Transportation], of license plates kept under this paragraph, including for each plate or set of plates the license plate number and the make, motor number, and vehicle identification number of the motor vehicle from which the plate was removed;

(7) an actor who purchases or receives a used or secondhand motor vehicle is presumed to know on receipt by the actor of the motor vehicle that the motor vehicle has been previously stolen from another if the actor knowingly or recklessly:

(A) fails to report to the Texas Department of Motor Vehicles [Transportation] the failure of the person who sold or delivered the motor vehicle to the actor to deliver to the actor a properly executed certificate of title to the motor vehicle at the time the motor vehicle was delivered; or

(B) fails to file with the county tax assessor-collector of the county in which the actor received the motor vehicle, not later than the 20th day after the date the actor received the motor vehicle, the registration license receipt and certificate of title or evidence of title delivered to the actor in accordance with Subchapter D, Chapter 520, Transportation Code, at the time the motor vehicle was delivered;

(8) an actor who purchases or receives from any source other than a licensed retailer or distributor of pesticides a restricted-use pesticide or a state-limited-use pesticide or a compound, mixture, or preparation containing a restricted-use or state-limited-use pesticide is presumed to know on receipt by the actor of the pesticide or compound, mixture, or preparation that the pesticide or compound, mixture, or preparation has been previously stolen from another if the actor:

(A) fails to record the name, address, and physical description of the seller or pledgor;

(B) fails to record a complete description of the amount and type of pesticide or compound, mixture, or preparation purchased or received; and

(C) fails to obtain a signed warranty from the seller or pledgor that the seller or pledgor has the right to possess the property; and

(9) an actor who is subject to Section 409, Packers and Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from a commission merchant by representing that the actor will make prompt payment is presumed to have induced the commission merchant's consent by deception if the actor fails to make full payment in accordance with Section 409, Packers and Stockyards Act (7 U.S.C. Section 228b).

SECTION 4J.02. Section 31.11(b), Penal Code, is amended to read as follows:

(b) It is an affirmative defense to prosecution under this section that the person was:

(1) the owner or acting with the effective consent of the owner of the property involved;

(2) a peace officer acting in the actual discharge of official duties; or

(3) acting with respect to a number assigned to a vehicle by the Texas Department of Transportation or the Texas Department of Motor Vehicles, as applicable, and the person was:

(A) in the actual discharge of official duties as an employee or agent of the department; or

(B) in full compliance with the rules of the department as an applicant for an assigned number approved by the department.

PART K. TAX CODE

SECTION 4K.01. Section 21.02(d), Tax Code, is amended to read as follows:

(d) A motor vehicle does not have taxable situs in a taxing unit under Subsection (a)(1) if, on January 1, the vehicle:

(1) has been located for less than 60 days at a place of business of a person who holds a wholesale motor vehicle auction general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under Chapter 503, Transportation Code, for that place of business; and

(2) is offered for resale.

SECTION 4K.02. Section 22.04(d), Tax Code, is amended to read as follows:

(d) This section does not apply to a motor vehicle that on January 1 is located at a place of business of a person who holds a wholesale motor vehicle auction general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under Chapter 503, Transportation Code, for that place of business, and that:

(1) has not acquired taxable situs under Section 21.02(a)(1) in a taxing unit that participates in the appraisal district because the vehicle is described by Section 21.02(d);

(2) is offered for sale by a dealer who holds a dealer's general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under Chapter 503, Transportation Code, and whose inventory of motor vehicles is subject to taxation in the manner provided by Sections 23.121 and 23.122; or

(3) is collateral possessed by a lienholder and offered for sale in foreclosure of a security interest.

SECTION 4K.03. Sections 23.121(a)(3), (11), and (14), Tax Code, are amended to read as follows:

(3) "Dealer" means a person who holds a dealer's general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under the authority of Chapter 503, Transportation Code, or who is legally recognized as a motor vehicle dealer pursuant to the law of another state and who complies with the terms of Section 152.063(f). The term does not include:

(A) a person who holds a manufacturer's license issued by the [Motor Vehicle Board of the] Texas Department of Motor Vehicles [Transportation];

(B) an entity that is owned or controlled by a person who holds a manufacturer's license issued by the [Motor Vehicle Board of the] Texas Department of Motor Vehicles [Transportation]; or

(C) a dealer whose general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation] under the authority of Chapter 503, Transportation Code, prohibits the dealer from selling a vehicle to any person except a dealer.

(11) "Sales price" means the total amount of money paid or to be paid for the purchase of a motor vehicle as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Motor Vehicles [Transportation]. In a transaction that does not involve the use of that form, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Title if that form were involved.

(14) "Towable recreational vehicle" means a nonmotorized vehicle that is designed for temporary human habitation for recreational, camping, or seasonal use and:

(A) is titled and registered with the Texas Department of Motor Vehicles [Transportation] through the office of the collector;

(B) is permanently built on a single chassis;

(C) contains one or more life support systems; and

(D) is designed to be towable by a motor vehicle.

SECTION 4K.04. Sections 23.121(f), (g), and (h), Tax Code, are amended to read as follows:

(f) The comptroller shall promulgate a form entitled Dealer's Motor Vehicle Inventory Declaration. Except as provided by Section 23.122(l) of this code, not later than February 1 of each year, or, in the case of a dealer who was not in business on January 1, not later than 30 days after commencement of business, each dealer shall file a declaration with the chief appraiser and file a copy with the collector. For purposes of this subsection, a dealer is presumed to have commenced business on the date of issuance to the dealer of a dealer's general distinguishing number as provided by Chapter 503, Transportation Code. Notwithstanding the presumption created by this subsection, a chief appraiser may, at his or her sole discretion, designate as the date on which a dealer commenced business a date other than the date of issuance to the dealer of a dealer's general distinguishing number. The declaration is sufficient to comply with this subsection if it sets forth the following information:

(1) the name and business address of each location at which the dealer owner conducts business;

(2) each of the dealer's general distinguishing numbers issued by the Texas Department of Motor Vehicles [Transportation];

(3) a statement that the dealer owner is the owner of a dealer's motor vehicle inventory; and

(4) the market value of the dealer's motor vehicle inventory for the current tax year as computed under Section 23.121(b) of this code.

(g) Under the terms provided by this subsection, the chief appraiser may examine the books and records of the holder of a general distinguishing number issued by the Texas Department of Motor Vehicles [Transportation]. A request made under this subsection must be made in writing, delivered personally to the custodian of the records, at the location for which the general distinguishing number has been issued, must provide a period not less than 15 days for the person to respond to the request, and must state that the person to whom it is addressed has the right to seek judicial relief from compliance with the request. In a request made under this section the chief appraiser may examine:

(1) the document issued by the Texas Department of Motor Vehicles [Transportation] showing the person's general distinguishing number;

(2) documentation appropriate to allow the chief appraiser to ascertain the applicability of this section and Section 23.122 of this code to the person;

(3) sales records to substantiate information set forth in the dealer's declaration filed by the person.

(h) If a dealer fails to file a declaration as required by this section, or if, on the declaration required by this section, a dealer reports the sale of fewer than five motor vehicles in the prior year, the chief appraiser shall report that fact to the Texas Department of Motor Vehicles [Transportation] and the department shall initiate termination proceedings. The chief appraiser shall include with the report a copy of a declaration, if any, indicating the sale by a dealer of fewer than five motor vehicles in the prior year. A report by a chief appraiser to the Texas Department of Motor Vehicles [Transportation] as provided by this subsection is prima facie grounds for the cancellation of the dealer's general distinguishing number under Section 503.038(a)(9), Transportation Code, or for refusal by the Texas Department of Motor Vehicles [Transportation] to renew the dealer's general distinguishing number.

SECTION 4K.05. Section 23.123(c), Tax Code, is amended to read as follows:

(c) Information made confidential by this section may be disclosed:

(1) in a judicial or administrative proceeding pursuant to a lawful subpoena;

(2) to the person who filed the declaration or statement or to that person's representative authorized by the person in writing to receive the information;

(3) to the comptroller or an employee of the comptroller authorized by the comptroller to receive the information;

(4) to a collector or chief appraiser;

(5) to a district attorney, criminal district attorney or county attorney involved in the enforcement of a penalty imposed pursuant to Section 23.121 or Section 23.122 of this code;

(6) for statistical purposes if in a form that does not identify specific property or a specific property owner;

(7) if and to the extent that the information is required for inclusion in a public document or record that the appraisal or collection office is required by law to prepare or maintain; or

(8) to the Texas Department of Motor Vehicles [Transportation] for use by that department in auditing compliance of its licensees with appropriate provisions of applicable law.

SECTION 4K.06. Section 23.124(a)(11), Tax Code, is amended to read as follows:

(11) "Sales price" means the total amount of money paid or to be paid for the purchase of:

(A) a vessel, other than a trailer that is treated as a vessel, as set forth as "sales price" in the form entitled "Application for Texas Certificate of Number/Title for Boat/Seller, Donor or Trader's Affidavit" promulgated by the Parks and Wildlife Department;

(B) an outboard motor as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title for an Outboard Motor/Seller, Donor or Trader's Affidavit" promulgated by the Parks and Wildlife Department; or

(C) a trailer that is treated as a vessel as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Motor Vehicles [Transportation].

In a transaction involving a vessel, an outboard motor, or a trailer that is treated as a vessel that does not involve the use of one of these forms, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Number/Title for Boat/Seller, Donor or Trader's Affidavit, the Application for Texas Certificate of Title for an Outboard Motor/Seller, Donor or Trader's Affidavit, or the Application for Texas Certificate of Title if one of these forms were involved.

SECTION 4K.07. Section 113.011, Tax Code, is amended to read as follows:

Sec. 113.011. LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR VEHICLES [TRANSPORTATION]. The comptroller shall furnish to the Texas Department of Motor Vehicles [Transportation] each release of a tax lien filed by the comptroller with that department.

SECTION 4K.08. Sections 152.0412(a) and (f), Tax Code, are amended to read as follows:

(a) In this section, "standard presumptive value" means the private-party transaction value of a motor vehicle, as determined by the Texas Department of Motor Vehicles [Transportation] based on an appropriate regional guidebook of a nationally recognized motor vehicle value guide service, or based on another motor vehicle guide publication that the department determines is appropriate if a private-party transaction value for the motor vehicle is not available from a regional guidebook described by this subsection.

(f) The Texas Department of Motor Vehicles [Transportation] shall maintain information on the standard presumptive values of motor vehicles as part of the department's registration and title system. The department shall update the information at least quarterly each calendar year and publish, electronically or otherwise, the updated information.

SECTION 4K.09. Section 152.042, Tax Code, is amended to read as follows:

Sec. 152.042. COLLECTION OF TAX ON METAL DEALER PLATES. A person required to pay the tax imposed by Section 152.027 shall pay the tax to the Texas Department of Motor Vehicles [Transportation], and the department may not issue the metal dealer's plates until the tax is paid.

SECTION 4K.10. Section 152.121(b), Tax Code, is amended to read as follows:

(b) Taxes on metal dealer plates collected by the Texas Department of Motor Vehicles [Transportation] shall be deposited by the department in the state treasury in the same manner as are other taxes collected under this chapter.

SECTION 4K.11. Section 162.001(52), Tax Code, is amended to read as follows:

(52) "Registered gross weight" means the total weight of the vehicle and carrying capacity shown on the registration certificate issued by the Texas Department of Motor Vehicles [Transportation].

ARTICLE 5. CONFORMING AMENDMENTS PERTAINING TO DEPARTMENT OF

PUBLIC SAFETY IN OTHER CODES AND STATUTES

PART A. ALCOHOLIC BEVERAGE CODE

SECTION 5A.01. Section 106.03(b), Alcoholic Beverage Code, is amended to read as follows:

(b) A person who sells a minor an alcoholic beverage does not commit an offense if the minor falsely represents himself to be 21 years old or older by displaying an apparently valid Texas driver's license or an identification certificate [card] issued by the Texas Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, containing a physical description consistent with his appearance for the purpose of inducing the person to sell him an alcoholic beverage.

SECTION 5A.02. Section 106.071(d), Alcoholic Beverage Code, is amended to read as follows:

(d) In addition to any fine and any order issued under Section 106.115:

(1) the court shall order a minor placed on deferred disposition for or convicted of an offense to which this section applies to perform community service for:

(A) not less than eight or more than 12 hours, if the minor has not been previously convicted of an offense to which this section applies; or

(B) not less than 20 or more than 40 hours, if the minor has been previously convicted once of an offense to which this section applies; and

(2) the court shall order the Texas Department of Motor Vehicles [Public Safety] to suspend the driver's license or permit of a minor convicted of an offense to which this section applies or, if the minor does not have a driver's license or permit, to deny the issuance of a driver's license or permit for:

(A) 30 days, if the minor has not been previously convicted of an offense to which this section applies;

(B) 60 days, if the minor has been previously convicted once of an offense to which this section applies; or

(C) 180 days, if the minor has been previously convicted twice or more of an offense to which this section applies.

SECTION 5A.03. Sections 106.115(d) and (e), Alcoholic Beverage Code, are amended to read as follows:

(d) If the defendant does not present the required evidence within the prescribed period, the court:

(1) shall order the Texas Department of Motor Vehicles [Public Safety] to:

(A) suspend the defendant's driver's license or permit for a period not to exceed six months or, if the defendant does not have a license or permit, to deny the issuance of a license or permit to the defendant for that period; or

(B) if the defendant has been previously convicted of an offense under one or more of the sections listed in Subsection (a), suspend the defendant's driver's license or permit for a period not to exceed one year or, if the defendant does not have a license or permit, to deny the issuance of a license or permit to the defendant for that period; and

(2) may order the defendant or the parent, managing conservator, or guardian of the defendant to do any act or refrain from doing any act if the court determines that doing the act or refraining from doing the act will increase the likelihood that the defendant will present evidence to the court that the defendant has satisfactorily completed an alcohol awareness program or performed the required hours of community service.

(e) The Texas Department of Motor Vehicles [Public Safety] shall send notice of the suspension or prohibition order issued under Subsection (d) by first class mail to the defendant. The notice must include the date of the suspension or prohibition order, the reason for the suspension or prohibition, and the period covered by the suspension or prohibition.

SECTION 5A.04. Section 106.15(e), Alcoholic Beverage Code, is amended to read as follows:

(e) A person does not commit an offense under Subsection (a) if the person younger than 18 years of age falsely represents the person's age to be at least 18 years of age by displaying an apparently valid Texas driver's license or an identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, containing a physical description consistent with the person's appearance.

PART B. CODE OF CRIMINAL PROCEDURE

SECTION 5B.01. Article 42.016, Code of Criminal Procedure, is amended to read as follows:

Art. 42.016. SPECIAL DRIVER'S LICENSE OR IDENTIFICATION REQUIREMENTS FOR CERTAIN SEX OFFENDERS. If a person is convicted of, receives a grant of deferred adjudication for, or is adjudicated as having engaged in delinquent conduct based on a violation of an offense for which a conviction or adjudication requires registration as a sex offender under Chapter 62, the court shall:

(1) issue an order requiring the Texas Department of Motor Vehicles [Public Safety] to include in any driver's license record or personal identification certificate record maintained by the department for the person an indication that the person is subject to the registration requirements of Chapter 62;

(2) require the person to apply to the Texas Department of Motor Vehicles [Public Safety] in person for an original or renewal driver's license or personal identification certificate not later than the 30th day after the date the person is released or the date the department sends written notice to the person of the requirements of Article 62.060, as applicable, and to annually renew the license or certificate;

(3) notify the person of the consequence of the conviction or order of deferred adjudication as it relates to the order issued under this article; and

(4) send to the Texas Department of Motor Vehicles [Public Safety] a copy of the record of conviction, a copy of the order granting deferred adjudication, or a copy of the juvenile adjudication, as applicable, and a copy of the order issued under this article.

SECTION 5B.02. Sections 13(h), (j), (l), and (m), Article 42.12, Code of Criminal Procedure, are amended to read as follows:

(h) If a person convicted of an offense under Sections 49.04-49.08, Penal Code, is placed on community supervision, the judge shall require, as a condition of the community supervision, that the defendant attend and successfully complete before the 181st day after the day community supervision is granted an educational program jointly approved by the Texas Commission on Alcohol and Drug Abuse, the Department of Public Safety, the Traffic Safety Section of the Texas Department of Transportation, and the community justice assistance division of the Texas Department of Criminal Justice designed to rehabilitate persons who have driven while intoxicated. The Texas Commission on Alcohol and Drug Abuse shall publish the jointly approved rules and shall monitor, coordinate, and provide training to persons providing the educational programs. The Texas Commission on Alcohol and Drug Abuse is responsible for the administration of the certification of approved educational programs and may charge a nonrefundable application fee for the initial certification of approval and for renewal of a certificate. The judge may waive the educational program requirement or may grant an extension of time to successfully complete the program that expires not later than one year after the beginning date of the person's community supervision, however, if the defendant by a motion in writing shows good cause. In determining good cause, the judge may consider but is not limited to: the defendant's school and work schedule, the defendant's health, the distance that the defendant must travel to attend an educational program, and the fact that the defendant resides out of state, has no valid driver's license, or does not have access to transportation. The judge shall set out the finding of good cause for waiver in the judgment. If a defendant is required, as a condition of community supervision, to attend an educational program or if the court waives the educational program requirement, the court clerk shall immediately report that fact to the Texas Department of Motor Vehicles [Public Safety], on a form prescribed by the department, for inclusion in the person's driving record. If the court grants an extension of time in which the person may complete the program, the court clerk shall immediately report that fact to the Texas Department of Motor Vehicles [Public Safety] on a form prescribed by the department. The report must include the beginning date of the person's community supervision. Upon the person's successful completion of the educational program, the person's instructor shall give notice to the Texas Department of Motor Vehicles [Public Safety] for inclusion in the person's driving record and to the community supervision and corrections department. The community supervision and corrections department shall then forward the notice to the court clerk for filing. If the Texas Department of Motor Vehicles [Public Safety] does not receive notice that a defendant required to complete an educational program has successfully completed the program within the period required by this section, as shown on department records, the department shall revoke the defendant's driver's license, permit, or privilege or prohibit the person from obtaining a license or permit, as provided by Sections 521.344(e) and (f), Transportation Code. The Texas Department of Motor Vehicles [Public Safety] may not reinstate a license suspended under this subsection unless the person whose license was suspended makes application to the department for reinstatement of the person's license and pays to the department a reinstatement fee of $50. The Texas Department of Motor Vehicles [Public Safety] shall remit all fees collected under this subsection to the comptroller for deposit in the general revenue fund. This subsection does not apply to a defendant if a jury recommends community supervision for the defendant and also recommends that the defendant's driver's license not be suspended.

(j) The judge shall require a defendant who is punished under Section 49.09, Penal Code, as a condition of community supervision, to attend and successfully complete an educational program for repeat offenders approved by the Texas Commission on Alcohol and Drug Abuse. The Texas Commission on Alcohol and Drug Abuse shall adopt rules and shall monitor, coordinate, and provide training to persons providing the educational programs. The Texas Commission on Alcohol and Drug Abuse is responsible for the administration of the certification of approved educational programs and may charge a nonrefundable application fee for initial certification of approval or for renewal of the certification. The judge may waive the educational program requirement only if the defendant by a motion in writing shows good cause. In determining good cause, the judge may consider the defendant's school and work schedule, the defendant's health, the distance that the defendant must travel to attend an educational program, and whether the defendant resides out of state or does not have access to transportation. The judge shall set out the finding of good cause in the judgment. If a defendant is required, as a condition of community supervision, to attend an educational program, the court clerk shall immediately report that fact to the Texas Department of Motor Vehicles [Public Safety], on a form prescribed by the department, for inclusion in the defendant's driving record. The report must include the beginning date of the defendant's community supervision. On the defendant's successful completion of the educational program for repeat offenders, the defendant's instructor shall give notice to the Texas Department of Motor Vehicles [Public Safety] for inclusion in the defendant's driving record and to the community supervision and corrections department. The community supervision and corrections department shall then forward the notice to the court clerk for filing. If the Texas Department of Motor Vehicles [Public Safety] does not receive notice that a defendant required to complete an educational program has successfully completed the program for repeat offenders within the period required by the judge, as shown on department records, the department shall revoke the defendant's driver's license, permit, or privilege or prohibit the defendant from obtaining a license or permit, as provided by Sections 521.344(e) and (f), Transportation Code.

(l) If the Texas Department of Motor Vehicles [Public Safety] receives notice that a defendant has been required or permitted to attend a subsequent educational program under Subsection (h), (j), or (k) of this section, although the previously required attendance had been waived, but the judge has not ordered a period of suspension, the department shall suspend the defendant's driver's license, permit, or operating privilege, or shall issue an order prohibiting the defendant from obtaining a license or permit for a period of 365 days.

(m) If a judge revokes the community supervision of a defendant for an offense under Section 49.04, Penal Code, or an offense involving the operation of a motor vehicle under Section 49.07, Penal Code, and the driver's license or privilege to operate a motor vehicle has not previously been ordered by the judge to be suspended, or if the suspension was previously probated, the judge shall suspend the license or privilege for a period provided under Subchapter O, Chapter 521, Transportation Code. The suspension shall be reported to the Texas Department of Motor Vehicles [Public Safety] as provided under Section 521.347, Transportation Code.

SECTION 5B.03. Articles 45.050(c) and (f), Code of Criminal Procedure, are amended to read as follows:

(c) If a child fails to obey an order of a justice or municipal court under circumstances that would constitute contempt of court, the justice or municipal court, after providing notice and an opportunity to be heard, may:

(1) refer the child to the appropriate juvenile court for delinquent conduct for contempt of the justice or municipal court order; or

(2) retain jurisdiction of the case, hold the child in contempt of the justice or municipal court, and order either or both of the following:

(A) that the contemnor pay a fine not to exceed $500; or

(B) that the Texas Department of Motor Vehicles [Public Safety] suspend the contemnor's driver's license or permit or, if the contemnor does not have a license or permit, to deny the issuance of a license or permit to the contemnor until the contemnor fully complies with the orders of the court.

(f) A court that orders suspension or denial of a driver's license or permit under Subsection (c)(2)(B) shall notify the Texas Department of Motor Vehicles [Public Safety] on receiving proof of compliance with the orders of the court.

SECTION 5B.04. Articles 45.051(b-1) and (b-3), Code of Criminal Procedure, are amended to read as follows:

(b-1) If the defendant is younger than 25 years of age and the offense committed by the defendant is a traffic offense classified as a moving violation:

(1) Subsection (b)(8) does not apply;

(2) during the deferral period, the judge shall require the defendant to complete a driving safety course approved under Chapter 1001, Education Code; and

(3) if the defendant holds a provisional license, during the deferral period the judge shall require that the defendant be examined by the Texas Department of Motor Vehicles [Public Safety] as required by Section 521.161(b)(2), Transportation Code; a defendant is not exempt from the examination regardless of whether the defendant was examined previously.

(b-3) The fee collected under Subsection (b-2) must be deposited to the credit of a special account in the general revenue fund and may be used only by the Texas Department of Motor Vehicles [Public Safety] for the administration of Chapter 521, Transportation Code.

SECTION 5B.05. Articles 45.0511(c), (c-1), and (l), Code of Criminal Procedure, are amended to read as follows:

(c) The court shall enter judgment on the defendant's plea of no contest or guilty at the time the plea is made, defer imposition of the judgment, and allow the defendant 90 days to successfully complete the approved driving safety course or motorcycle operator training course and present to the court:

(1) a uniform certificate of completion of the driving safety course or a verification of completion of the motorcycle operator training course;

(2) unless the judge proceeds under Subsection (c-1), the defendant's driving record as maintained by the Texas Department of Motor Vehicles [Public Safety], if any, showing that the defendant had not completed an approved driving safety course or motorcycle operator training course, as applicable, within the 12 months preceding the date of the offense;

(3) an affidavit stating that the defendant was not taking a driving safety course or motorcycle operator training course, as applicable, under this article on the date the request to take the course was made and had not completed such a course that is not shown on the defendant's driving record within the 12 months preceding the date of the offense; and

(4) if the defendant does not have a valid Texas driver's license or permit and is a member, or the spouse or dependent child of a member, of the United States military forces serving on active duty, an affidavit stating that the defendant was not taking a driving safety course or motorcycle operator training course, as appropriate, in another state on the date the request to take the course was made and had not completed such a course within the 12 months preceding the date of the offense.

(c-1) In this subsection, "TexasOnline" has the meaning assigned by Section 2054.003, Government Code. As an alternative to receiving the defendant's driving record under Subsection (c)(2), the judge, at the time the defendant requests a driving safety course or motorcycle operator training course dismissal under this article, may require the defendant to pay a fee in an amount equal to the sum of the amount of the fee established by Section 521.048, Transportation Code, and the TexasOnline fee and, using TexasOnline, may request the Texas Department of Motor Vehicles [Public Safety] to provide the judge with a copy of the defendant's driving record that shows the information described by Section 521.047(b), Transportation Code. As soon as practicable and using TexasOnline, the Texas Department of Motor Vehicles [Public Safety] shall provide the judge with the requested copy of the defendant's driving record. The fee authorized by this subsection is in addition to any other fee required under this article. If the copy of the defendant's driving record provided to the judge under this subsection shows that the defendant has not completed an approved driving safety course or motorcycle operator training course, as appropriate, within the 12 months preceding the date of the offense, the judge shall allow the defendant to complete the appropriate course as provided by this article. The custodian of a municipal or county treasury who receives fees collected under this subsection shall keep a record of the fees and, without deduction or proration, forward the fees to the comptroller, with and in the manner required for other fees and costs received in connection with criminal cases. The comptroller shall credit fees received under this subsection to the Texas Department of Motor Vehicles [Public Safety].

(l) When a defendant complies with Subsection (c), the court shall:

(1) remove the judgment and dismiss the charge;

(2) report the fact that the defendant successfully completed a driving safety course or a motorcycle operator training course and the date of completion to the Texas Department of Motor Vehicles [Public Safety] for inclusion in the person's driving record; and

(3) state in that report whether the course was taken under this article to provide information necessary to determine eligibility to take a subsequent course under Subsection (b).

SECTION 5B.06. Article 45.052(d), Code of Criminal Procedure, is amended to read as follows:

(d) A charge dismissed under this article may not be part of the defendant's criminal record or driving record or used for any purpose. However, if the charge was for a traffic offense, the court shall report to the Texas Department of Motor Vehicles [Public Safety] that the defendant successfully completed the teen court program and the date of completion for inclusion in the defendant's driving record.

SECTION 5B.07. Article 45.054(f), Code of Criminal Procedure, is amended to read as follows:

(f) In addition to any other order authorized by this article, the court may order the Texas Department of Motor Vehicles [Public Safety] to suspend the driver's license or permit of the individual who is the subject of the hearing or, if the individual does not have a license or permit, to deny the issuance of a license or permit to the individual for a period specified by the court not to exceed 365 days.

PART C. EDUCATION CODE

SECTION 5C.01. Section 22.051(a), Education Code, is amended to read as follows:

(a) In this subchapter, "professional employee of a school district" includes:

(1) a superintendent, principal, teacher, including a substitute teacher, supervisor, social worker, counselor, nurse, and teacher's aide employed by a school district;

(2) a teacher employed by a company that contracts with a school district to provide the teacher's services to the district;

(3) a student in an education preparation program participating in a field experience or internship;

(4) a school bus driver certified in accordance with standards and qualifications adopted by the Texas Department of Motor Vehicles [Public Safety of the State of Texas];

(5) a member of the board of trustees of an independent school district; and

(6) any other person employed by a school district whose employment requires certification and the exercise of discretion.

SECTION 5C.02. Section 51.207(c), Education Code, is amended to read as follows:

(c) The commissioner of motor vehicles [Public Safety Commission] shall adopt rules providing for the inspection under Subchapter F, Chapter 548, Transportation Code, of motor vehicles not registered in this state for purposes of Subsection (b).

SECTION 5C.03. Section 1001.001(5), Education Code, is amended to read as follows:

(5) "Department" means the Texas Department of Motor Vehicles [Public Safety].

PART D. ELECTION CODE

SECTION 5D.01. Section 13.002(c), Election Code, is amended to read as follows:

(c) A registration application must include:

(1) the applicant's first name, middle name, if any, last name, and former name, if any;

(2) the month, day, and year of the applicant's birth;

(3) a statement that the applicant is a United States citizen;

(4) a statement that the applicant is a resident of the county;

(5) a statement that the applicant has not been determined by a final judgment of a court exercising probate jurisdiction to be:

(A) totally mentally incapacitated; or

(B) partially mentally incapacitated without the right to vote;

(6) a statement that the applicant has not been finally convicted of a felony or that the applicant is a felon eligible for registration under Section 13.001;

(7) the applicant's residence address or, if the residence has no address, the address at which the applicant receives mail and a concise description of the location of the applicant's residence;

(8) the following information:

(A) the applicant's Texas driver's license number or the number of a personal identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, or a statement by the applicant that the applicant has not been issued a driver's license or personal identification certificate [card]; or

(B) if the applicant has not been issued a number described by Paragraph (A), the last four digits of the applicant's social security number or a statement by the applicant that the applicant has not been issued a social security number;

(9) if the application is made by an agent, a statement of the agent's relationship to the applicant; and

(10) the city and county in which the applicant formerly resided.

SECTION 5D.02. Section 13.004(c), Election Code, is amended to read as follows:

(c) The following information furnished on a registration application is confidential and does not constitute public information for purposes of Chapter 552, Government Code:

(1) a social security number;

(2) a Texas driver's license number;

(3) a number of a personal identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable;

(4) an indication that an applicant is interested in working as an election judge; or

(5) the residence address of the applicant, if the applicant is a federal judge or state judge, as defined by Section 13.0021, and included an affidavit with the registration application under Section 13.0021 or the registrar has received an affidavit submitted under Section 15.0215.

SECTION 5D.03. Section 13.072(a), Election Code, is amended to read as follows:

(a) Unless the registrar challenges the applicant, the registrar shall approve the application if:

(1) the registrar determines that an application complies with Section 13.002 and indicates that the applicant is eligible for registration; and

(2) for an applicant who has not included a statement described by Section 13.002(c)(8) [13.002(c)(8)(C)], the registrar verifies with the secretary of state:

(A) the applicant's Texas driver's license number or number of a personal identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable; or

(B) the last four digits of the applicant's social security number.

SECTION 5D.04. Section 13.122(a), Election Code, is amended to read as follows:

(a) In addition to the other statements and spaces for entering information that appear on an officially prescribed registration application form, each official form must include:

(1) the statement: "I understand that giving false information to procure a voter registration is perjury and a crime under state and federal law.";

(2) a space for the applicant's registration number;

(3) a space for the applicant's Texas driver's license number or number of a personal identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable;

(4) a space for the applicant's telephone number;

(5) a space for the applicant's social security number;

(6) a space for the applicant's sex;

(7) a statement indicating that the furnishing of the applicant's telephone number and sex is optional;

(8) a space or box for indicating whether the applicant or voter is submitting new registration information or a change in current registration information;

(9) a statement instructing a voter who is using the form to make a change in current registration information to enter the voter's name and the changed information in the appropriate spaces on the form;

(10) a statement that if the applicant declines to register to vote, that fact will remain confidential and will be used only for voter registration purposes;

(11) a statement that if the applicant does register to vote, information regarding the agency or office to which the application is submitted will remain confidential and will be used only for voter registration purposes;

(12) a space or box for indicating whether the applicant is interested in working as an election judge;

(13) a statement warning that a conviction for making a false statement may result in imprisonment for up to the maximum amount of time provided by law, a fine of up to the maximum amount provided by law, or both the imprisonment and the fine; and

(14) any other voter registration information required by federal law or considered appropriate and required by the secretary of state.

SECTION 5D.05. Section 16.031(a), Election Code, is amended to read as follows:

(a) The registrar shall cancel a voter's registration immediately on receipt of:

(1) notice under Section 13.072(b) or 15.021 or a response under Section 15.053 that the voter's residence is outside the county;

(2) an abstract of the voter's death certificate under Section 16.001(a) or an abstract of an application indicating that the voter is deceased under Section 16.001(b);

(3) an abstract of a final judgment of the voter's total mental incapacity, partial mental incapacity without the right to vote, conviction of a felony, or disqualification under Section 16.002, 16.003, or 16.004;

(4) notice under Section 112.012 that the voter has applied for a limited ballot in another county;

(5) notice from a voter registration official in another state that the voter has registered to vote outside this state; or

(6) notice from the secretary of state that the voter has registered to vote in another county, as determined by the voter's driver's license number or personal identification certificate [card] number issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, or social security number.

SECTION 5D.06. The heading to Subchapter C, Chapter 20, Election Code, is amended to read as follows:

SUBCHAPTER C. TEXAS DEPARTMENT OF MOTOR VEHICLES [PUBLIC SAFETY]

SECTION 5D.07. Section 20.061, Election Code, is amended to read as follows:

Sec. 20.061. APPLICABILITY OF OTHER PROVISIONS. The other provisions of this chapter apply to the Texas Department of Motor Vehicles [Public Safety] except provisions that conflict with this subchapter.

SECTION 5D.08. Section 20.062(a), Election Code, is amended to read as follows:

(a) The Texas Department of Motor Vehicles [Public Safety] shall prescribe and use a form and procedure that combines the department's application form for a license or certificate [card] with an officially prescribed voter registration application form.

SECTION 5D.09. Section 20.063(a), Election Code, is amended to read as follows:

(a) The Texas Department of Motor Vehicles [Public Safety] shall provide to each person who applies in person at the department's offices for an original or renewal of a driver's license, a personal identification certificate [card], or a duplicate or corrected license or certificate [card] an opportunity to complete a voter registration application form.

SECTION 5D.10. Section 20.064, Election Code, is amended to read as follows:

Sec. 20.064. DECLINATION FORM NOT REQUIRED. The Texas Department of Motor Vehicles [Public Safety] is not required to comply with the procedures prescribed by this chapter relating to the form for a declination of voter registration.

SECTION 5D.11. Section 20.065(a), Election Code, is amended to read as follows:

(a) At the end of each day a Texas Department of Motor Vehicles [Public Safety] office is regularly open for business, the manager of the office shall deliver by mail or in person to the voter registrar of the county in which the office is located each completed voter registration application and applicable change of address submitted to a department employee.

SECTION 5D.12. Section 20.066(a), Election Code, is amended to read as follows:

(a) If a person completes a voter registration application as provided by Section 20.063, the Texas Department of Motor Vehicles [Public Safety] shall:

(1) input the information provided on the application into the department's electronic data system; and

(2) inform the applicant that the applicant's electronic signature provided to the department will be used for submitting the applicant's voter registration application.

SECTION 5D.13. Section 63.0101, Election Code, is amended to read as follows:

Sec. 63.0101. DOCUMENTATION OF PROOF OF IDENTIFICATION. The following documentation is acceptable as proof of identification under this chapter:

(1) a driver's license or personal identification certificate [card] issued to the person by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, or a similar document issued to the person by an agency of another state, regardless of whether the license or certificate [card] has expired;

(2) a form of identification containing the person's photograph that establishes the person's identity;

(3) a birth certificate or other document confirming birth that is admissible in a court of law and establishes the person's identity;

(4) United States citizenship papers issued to the person;

(5) a United States passport issued to the person;

(6) official mail addressed to the person by name from a governmental entity;

(7) a copy of a current utility bill, bank statement, government check, paycheck, or other government document that shows the name and address of the voter; or

(8) any other form of identification prescribed by the secretary of state.

SECTION 5D.14. Section 65.060, Election Code, is amended to read as follows:

Sec. 65.060. DISCLOSURE OF SOCIAL SECURITY, DRIVER'S LICENSE, OR PERSONAL IDENTIFICATION NUMBER ON PROVISIONAL BALLOT AFFIDAVIT. A social security number, Texas driver's license number, or number of a personal identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, furnished on a provisional ballot affidavit is confidential and does not constitute public information for purposes of Chapter 552, Government Code. The general custodian of election records shall ensure that a social security number, Texas driver's license number, or number of a personal identification certificate [card] issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, is excluded from disclosure.

PART E. FAMILY CODE

SECTION 5E.01. Sections 54.042(a), (b), (f), and (g), Family Code, are amended to read as follows:

(a) A juvenile court, in a disposition hearing under Section 54.04, shall:

(1) order the Texas Department of Motor Vehicles [Public Safety] to suspend a child's driver's license or permit, or if the child does not have a license or permit, to deny the issuance of a license or permit to the child if the court finds that the child has engaged in conduct that violates a law of this state enumerated in Section 521.342(a), Transportation Code; or

(2) notify the Texas Department of Motor Vehicles [Public Safety] of the adjudication, if the court finds that the child has engaged in conduct that violates a law of this state enumerated in Section 521.372(a), Transportation Code.

(b) A juvenile court, in a disposition hearing under Section 54.04, may order the Texas Department of Motor Vehicles [Public Safety] to suspend a child's driver's license or permit or, if the child does not have a license or permit, to deny the issuance of a license or permit to the child, if the court finds that the child has engaged in conduct that violates Section 28.08, Penal Code.

(f) A juvenile court, in a disposition hearing under Section 54.04, may order the Texas Department of Motor Vehicles [Public Safety] to suspend a child's driver's license or permit or, if the child does not have a license or permit, to deny the issuance of a license or permit to the child for a period not to exceed 12 months if the court finds that the child has engaged in conduct in need of supervision or delinquent conduct other than the conduct described by Subsection (a).

(g) A juvenile court that places a child on probation under Section 54.04 may require as a reasonable condition of the probation that if the child violates the probation, the court may order the Texas Department of Motor Vehicles [Public Safety] to suspend the child's driver's license or permit or, if the child does not have a license or permit, to deny the issuance of a license or permit to the child for a period not to exceed 12 months. The court may make this order if a child that is on probation under this condition violates the probation. A suspension under this subsection is cumulative of any other suspension under this section.

SECTION 5E.02. Section 54.0481(c), Family Code, as added by Chapter 908 (H.B. 2884), Acts of the 80th Legislature, Regular Session, 2007, is amended to read as follows:

(c) On or before the fifth anniversary of the date the juvenile probation department receives a payment for a victim that is not claimed by the victim, the department shall make and document a good faith effort to locate and notify the victim that an unclaimed payment exists, including:

(1) confirming, if possible, the victim's most recent address with the Texas Department of Motor Vehicles [Public Safety]; and

(2) making at least one additional certified mailing to the victim.

SECTION 5E.03. Sections 203.007(b) and (g), Family Code, are amended to read as follows:

(b) A domestic relations office is entitled to obtain from the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, records that relate to:

(1) a person's date of birth;

(2) a person's most recent address;

(3) a person's current driver's license status;

(4) motor vehicle accidents involving a person;

(5) reported traffic-law violations of which a person has been convicted; and

(6) a person's criminal history record information.

(g) The Department of Public Safety, the Texas Department of Motor Vehicles, the Texas Workforce Commission, or the office of the secretary of state may charge a domestic relations office a fee not to exceed the charge paid by the Title IV-D agency for furnishing records under this section.

SECTION 5E.04. Section 232.014(b), Family Code, is amended to read as follows:

(b) A fee collected by the Texas Department of Transportation, [or] the Department of Public Safety, or the Texas Department of Motor Vehicles shall be deposited to the credit of the state highway fund.

PART F. FINANCE CODE

SECTION 5F.01. Section 277.002(a), Finance Code, is amended to read as follows:

(a) A financial institution shall require, as a condition of opening or maintaining a business checking account, that the applicant or account holder provide:

(1) if the business is a sole proprietorship:

(A) the name of the business owner;

(B) the physical address of the business;

(C) the home address of the business owner; and

(D) the driver's license number of the business owner or the personal identification certificate [card] number issued to the business owner by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable; or

(2) if the business is a corporation or other legal entity, a copy of the business's certificate of incorporation or a comparable document and an assumed name certificate, if any.

PART G. HEALTH AND SAFETY CODE

SECTION 5G.01. Section 12.013(b), Health and Safety Code, is amended to read as follows:

(b) Based on the studies and investigations, the department periodically shall recommend to the Texas Department of Motor Vehicles [Public Safety] appropriate policies, standards, and procedures relating to those medical aspects.

SECTION 5G.02. Section 12.092(b), Health and Safety Code, is amended to read as follows:

(b) The medical advisory board shall assist the Texas Department of Motor Vehicles [Public Safety of the State of Texas] in determining whether:

(1) an applicant for a driver's license or a license holder is capable of safely operating a motor vehicle; or

(2) an applicant for or holder of a license to carry a concealed handgun under the authority of Subchapter H, Chapter 411, Government Code, is capable of exercising sound judgment with respect to the proper use and storage of a handgun.

SECTION 5G.03. Sections 12.095(a) and (c), Health and Safety Code, are amended to read as follows:

(a) If the Texas Department of Motor Vehicles [Public Safety of the State of Texas] requests an opinion or recommendation from the medical advisory board as to the ability of an applicant or license holder to operate a motor vehicle safely or to exercise sound judgment with respect to the proper use and storage of a handgun, the commissioner or a person designated by the commissioner shall convene a panel to consider the case or question submitted by that department.

(c) Each panel member shall prepare an individual independent written report for the Texas Department of Motor Vehicles [Public Safety of the State of Texas] that states the member's opinion as to the ability of the applicant or license holder to operate a motor vehicle safely or to exercise sound judgment with respect to the proper use and storage of a handgun, as appropriate. In the report the panel member may also make recommendations relating to that department's subsequent action.

SECTION 5G.04. Section 12.096(a), Health and Safety Code, is amended to read as follows:

(a) A physician licensed to practice medicine in this state may inform the Texas Department of Motor Vehicles [Public Safety of the State of Texas] or the medical advisory board, orally or in writing, of the name, date of birth, and address of a patient older than 15 years of age whom the physician has diagnosed as having a disorder or disability specified in a rule of the Texas Department of Motor Vehicles [Public Safety of the State of Texas].

SECTION 5G.05. Section 12.097, Health and Safety Code, is amended to read as follows:

Sec. 12.097. CONFIDENTIALITY REQUIREMENTS. (a) All records, reports, and testimony relating to the medical condition of an applicant or license holder:

(1) are for the confidential use of the medical advisory board, a panel, or the Texas Department of Motor Vehicles [Public Safety of the State of Texas];

(2) are privileged information; and

(3) may not be disclosed to any person or used as evidence in a trial except as provided by Subsection (b).

(b) In a subsequent proceeding under Subchapter N, Chapter 521, Transportation Code, the medical standards division may provide a copy of the report of the medical advisory board or panel and a medical record or report relating to an applicant or license holder to:

(1) the Texas Department of Motor Vehicles [Public Safety of the State of Texas];

(2) the applicant or license holder; and

(3) the officer who presides at the hearing.

SECTION 5G.06. Sections 49.002(a), (c), (d), (e), (f), (g), (h), and (m), Health and Safety Code, are amended to read as follows:

(a) In consultation with the Texas Department of Motor Vehicles [Public Safety] and organ procurement organizations, the department shall establish the Donor Education, Awareness, and Registry Program of Texas.

(c) The Texas Department of Motor Vehicles [Public Safety] at least monthly shall electronically transfer to the organization selected by the commissioner as provided by Subsection (b) the name, date of birth, driver's license number, most recent address, and any other relevant information in the possession of the Texas Department of Motor Vehicles [Public Safety] for any person who indicates on the person's driver's license application under Section 521.401, Transportation Code, that the person would like to make an anatomical gift and consents in writing to the release of the information by the Texas Department of Motor Vehicles [Public Safety] to the organization for inclusion in the statewide Internet-based registry of organ, tissue, and eye donors.

(d) The contract between the department and the organization selected by the commissioner as provided by Subsection (b) must require the organization to:

(1) make information obtained from the Texas Department of Motor Vehicles [Public Safety] under Subsection (c) available to qualified organ, tissue, and eye bank organizations;

(2) allow potential donors to submit information in writing directly to the organization for inclusion in the statewide Internet-based registry of organ, tissue, and eye donors;

(3) maintain the statewide Internet-based registry of organ, tissue, and eye donors in a manner that allows qualified organ, tissue, and eye bank organizations to immediately access organ, tissue, and eye donation information 24 hours a day, seven days a week, through electronic and telephonic methods; and

(4) protect the confidentiality and privacy of the individuals providing information to the statewide Internet-based registry, regardless of the manner in which the information is provided.

(e) Except as otherwise provided by Subsection (d)(3) or this subsection, the Texas Department of Motor Vehicles [Public Safety], the organization selected by the commissioner under Subsection (b), or a qualified organ, tissue, and eye bank organization may not sell, rent, or otherwise share any information provided to the registry. A qualified organ, tissue, and eye bank organization may share any information provided to the registry with an organ procurement organization or a health care provider or facility providing medical care to a potential donor as necessary to properly identify an individual at the time of donation.

(f) The Texas Department of Motor Vehicles [Public Safety], the organization selected by the commissioner under Subsection (b), or the qualified organ, tissue, and eye bank organizations may not use any demographic or specific data provided to the registry for any fund-raising activities. Data may only be transmitted from the selected organization to qualified organ, tissue, and eye bank organizations through electronic and telephonic methods using secure, encrypted technology to preserve the integrity of the data and the privacy of the individuals providing information.

(g) In each office authorized to issue driver's licenses or personal identification certificates, the Texas Department of Motor Vehicles [Public Safety] shall make available educational materials developed by the Texas Organ, Tissue, and Eye Donor Council established under Chapter 113.

(h) The Texas Department of Motor Vehicles [Public Safety] shall remit to the comptroller the money collected under Sections 521.421(g) and 521.422(c), Transportation Code, as provided by those subsections. A county assessor-collector shall remit to the comptroller any money collected under Section 502.1745, Transportation Code, as provided by that section. Money remitted to the comptroller in accordance with this subsection that is appropriated to the department must be spent in accordance with the priorities established by the department in consultation with the Texas Organ, Tissue, and Eye Donor Council to pay the costs of:

(1) maintaining, operating, and updating the statewide Internet-based donor registry and establishing procedures for an individual to be added to the registry; and

(2) designing and distributing education materials for prospective donors as required under this section.

(m) In consultation with the Texas Organ, Tissue, and Eye Donor Council, the department may implement a training program for all appropriate Texas Department of Motor Vehicles [Public Safety] and Texas Department of Transportation employees on the benefits of organ, tissue, and eye donation and the procedures for individuals to be added to the statewide Internet-based registry of organ, tissue, and eye donors. The department shall implement the training program before the date that the statewide Internet-based registry is operational and shall conduct the training on an ongoing basis for new employees.

SECTION 5G.07. Section 81.011, Health and Safety Code, is amended to read as follows:

Sec. 81.011. REQUEST FOR INFORMATION. In times of emergency or epidemic declared by the commissioner, the department is authorized to request information pertaining to names, dates of birth, and most recent addresses of individuals from the driver's license records of the Texas Department of Motor Vehicles [Public Safety] for the purpose of notification to individuals of the need to receive certain immunizations or diagnostic, evaluation, or treatment services for suspected communicable diseases.

SECTION 5G.08. Section 113.051(a), Health and Safety Code, as added by Chapter 1186 (H.B. 120), Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

(a) The council is composed of:

(1) a representative of the department appointed by the commissioner;

(2) a representative of the Texas Department of Motor Vehicles [Public Safety] appointed by the commissioner of motor vehicles [public safety director];

(3) a representative of the Texas Department of Transportation appointed by the executive director of that agency;

(4) five professional members appointed by the commissioner as follows:

(A) one representative from each of the state's three federally qualified organ procurement organizations nominated by each organization;

(B) one representative who is a transplant physician or nurse licensed in this state; and

(C) one representative of an acute care hospital in this state; and

(5) two public members appointed by the commissioner.

SECTION 5G.09. Section 113.101, Health and Safety Code, as added by Chapter 1186 (H.B. 120), Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

Sec. 113.101. GENERAL DUTIES. The council as required by the department shall:

(1) advise the department concerning the Donor Education, Awareness, and Registry Program of Texas established under Chapter 49;

(2) advise the department on priorities for the initiatives to be implemented under the Donor Education, Awareness, and Registry Program of Texas established under Chapter 49;

(3) advise the department regarding donor education, awareness, and registry outreach specifically targeted at African American and Hispanic populations;

(4) advise the commissioner, commissioner of motor vehicles [public safety director], and director of the Texas Department of Transportation on the allocation of money received by the comptroller for the activities authorized under Chapter 49; and

(5) advise the department, the Texas Department of Motor Vehicles [Public Safety], and the Texas Department of Transportation regarding necessary performance standards and quality control measures concerning the operation of the statewide Internet-based donor registry, as well as related donor educational programs.

SECTION 5G.10. Sections 382.0622(a) and (c), Health and Safety Code, are amended to read as follows:

(a) Clean Air Act fees consist of:

(1) fees collected by the commission under Sections 382.062, 382.0621, 382.202, and 382.302 and as otherwise provided by law; and

(2) $2 of each advance payment collected by the Texas Department of Motor Vehicles [Public Safety] for inspection certificates for vehicles other than mopeds under Section 548.501, Transportation Code.

(c) The commission shall request the appropriation of sufficient money to safeguard the air resources of the state, including payments to the commissioner of motor vehicles [Public Safety Commission] for incidental costs of administering the vehicle emissions inspection and maintenance program, except that after the date of delegation of the state's permitting program under Title V of the federal Clean Air Act (42 U.S.C. Sections 7661 et seq.), fees collected under Section 382.0621(a) may be appropriated only to cover costs of developing and administering the federal permit program under Titles IV and V of the federal Clean Air Act (42 U.S.C. Sections 7651 et seq. and 7661 et seq.).

SECTION 5G.11. Sections 382.202(a) and (d), Health and Safety Code, are amended to read as follows:

(a) The commission by resolution may request the commissioner of motor vehicles [Public Safety Commission] to establish a vehicle emissions inspection and maintenance program under Subchapter F, Chapter 548, Transportation Code, in accordance with this section and rules adopted under this section. The commission by rule may establish, implement, and administer a program requiring emissions-related inspections of motor vehicles to be performed at inspection facilities consistent with the requirements of the federal Clean Air Act (42 U.S.C. Section 7401 et seq.) and its subsequent amendments.

(d) On adoption of a resolution by the commission and after proper notice, the Texas Department of Motor Vehicles [Public Safety of the State of Texas] shall implement a system that requires, as a condition of obtaining a safety inspection certificate issued under Subchapter C, Chapter 548, Transportation Code, in a county that is included in a vehicle emissions inspection and maintenance program under Subchapter F of that chapter, that the vehicle, unless the vehicle is not covered by the system, be annually or biennially inspected under the vehicle emissions inspection and maintenance program as required by the state's air quality state implementation plan. The Texas Department of Motor Vehicles [Public Safety] shall implement such a system when it is required by any provision of federal or state law, including any provision of the state's air quality state implementation plan.

SECTION 5G.12. Section 382.203(c), Health and Safety Code, is amended to read as follows:

(c) The Texas Department of Motor Vehicles [Public Safety of the State of Texas] by rule may waive program requirements, in accordance with standards adopted by the commission, for certain vehicles and vehicle owners, including:

(1) the registered owner of a vehicle who cannot afford to comply with the program, based on reasonable income standards;

(2) a vehicle that cannot be brought into compliance with emissions standards by performing repairs;

(3) a vehicle:

(A) on which at least $100 has been spent to bring the vehicle into compliance; and

(B) that the department:

(i) can verify was driven fewer than 5,000 miles since the last safety inspection; and

(ii) reasonably determines will be driven fewer than 5,000 miles during the period before the next safety inspection is required; and

(4) a vehicle for which parts are not readily available.

SECTION 5G.13. Section 382.204(a), Health and Safety Code, is amended to read as follows:

(a) The commission and the Texas Department of Motor Vehicles [Public Safety of the State of Texas] jointly shall develop a program component for enforcing vehicle emissions testing and standards by use of remote or automatic emissions detection and analysis equipment.

SECTION 5G.14. Sections 382.205(c), (d), (e), and (g), Health and Safety Code, are amended to read as follows:

(c) In consultation with the Texas Department of Motor Vehicles [Public Safety of the State of Texas], the commission may contract with one or more private entities to provide testing equipment, training, and related services to inspection stations in exchange for part of the testing fee. A contract under this subsection may apply to one specified area of the state or to the entire state. The commission at least once during each year shall review each contract entered into under this subsection to determine whether the contracting entity is performing satisfactorily under the terms of the contract. Immediately after completing the review, the commission shall prepare a report summarizing the review and send a copy of the report to the speaker of the house of representatives, the lieutenant governor, and the governor.

(d) The Texas Department of Motor Vehicles [Public Safety of the State of Texas] by rule shall adopt:

(1) testing procedures in accordance with motor vehicle emissions testing equipment specifications; and

(2) procedures for issuing or denying an emissions inspection certificate.

(e) The commission and the Texas Department of Motor Vehicles [Public Safety of the State of Texas] by joint rule may adopt procedures to encourage a stable private market for providing emissions testing to the public in all areas of an affected county, including:

(1) allowing facilities to perform one or more types of emissions tests; and

(2) any other measure the commission and the Texas Department of Motor Vehicles [Public Safety] consider appropriate.

(g) Subject to Subsection (h), the commission and the Texas Department of Motor Vehicles [Public Safety of the State of Texas] by rule may allow alternative vehicle emissions testing if:

(1) the technology provides accurate and reliable results;

(2) the technology is widely and readily available to persons interested in performing alternative vehicle emissions testing; and

(3) the use of alternative testing is not likely to substantially affect federal approval of the state's air quality state implementation plan.

SECTION 5G.15. Section 382.206(a), Health and Safety Code, is amended to read as follows:

(a) The commission and the Texas Department of Motor Vehicles [Public Safety of the State of Texas] may collect inspection and maintenance information derived from the emissions inspection and maintenance program, including:

(1) inspection results;

(2) inspection station information;

(3) information regarding vehicles operated on federal facilities;

(4) vehicle registration information; and

(5) other data the United States Environmental Protection Agency requires.

SECTION 5G.16. Sections 382.207(a), (b), (d), and (e), Health and Safety Code, are amended to read as follows:

(a) The Texas Department of Motor Vehicles [Public Safety of the State of Texas] by rule shall adopt standards and procedures for establishing vehicle emissions inspection stations authorized and licensed by the state.

(b) A vehicle emissions inspection may be performed at a decentralized independent inspection station or at a centralized inspection facility operated or licensed by the state. In developing the program for vehicle emissions inspections, the Texas Department of Motor Vehicles [Public Safety] shall make all reasonable efforts to preserve the present decentralized system.

(d) The Texas Department of Motor Vehicles [Public Safety] may authorize enforcement personnel or other individuals to remove, disconnect, adjust, or make inoperable vehicle emissions control equipment, devices, or systems and to operate a vehicle in the tampered condition in order to perform a quality control audit of an inspection station or other quality control activities as necessary to assess and ensure the effectiveness of the vehicle emissions inspection and maintenance program.

(e) The Texas Department of Motor Vehicles [Public Safety] shall develop a challenge station program to provide for the reinspection of a motor vehicle at the option of the owner of the vehicle to ensure quality control of a vehicle emissions inspection and maintenance system.

SECTION 5G.17. Sections 382.209(a), (d), (e), and (i), Health and Safety Code, are amended to read as follows:

(a) The commission and the commissioner of motor vehicles [Public Safety Commission] by joint rule shall establish and authorize the commissioners court of a participating county to implement a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program subject to agency oversight that may include reasonable periodic commission audits.

(d) Subject to the availability of funds, a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program established under this section shall provide monetary or other compensatory assistance for:

(1) repairs directly related to bringing certain vehicles that have failed a required emissions test into compliance with emissions requirements;

(2) a replacement vehicle or replacement assistance for a vehicle that has failed a required emissions test and for which the cost of repairs needed to bring the vehicle into compliance is uneconomical; and

(3) installing retrofit equipment on vehicles that have failed a required emissions test, if practically and economically feasible, in lieu of or in combination with repairs performed under Subdivision (1). The commission and the Texas Department of Motor Vehicles [Public Safety of the State of Texas] shall establish standards and specifications for retrofit equipment that may be used under this section.

(e) A vehicle is not eligible to participate in a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program established under this section unless:

(1) the vehicle is capable of being operated;

(2) the registration of the vehicle:

(A) is current; and

(B) reflects that the vehicle has been registered in the county implementing the program for the 12 months preceding the application for participation in the program;

(3) the commissioners court of the county administering the program determines that the vehicle meets the eligibility criteria adopted by the commission, the Texas Department of Transportation, and the commissioner of motor vehicles [Public Safety Commission];

(4) if the vehicle is to be repaired, the repair is done by a repair facility recognized by the Texas Department of Motor Vehicles [Public Safety], which may be an independent or private entity licensed by the state; and

(5) if the vehicle is to be retired under this subsection and Section 382.213, the replacement vehicle is a qualifying motor vehicle.

(i) Notwithstanding the vehicle replacement requirements provided by Subsection (d)(2), the commission by rule may provide monetary or other compensatory assistance under the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program, subject to the availability of funds, for the replacement of a vehicle that meets the following criteria:

(1) the vehicle is gasoline-powered and is at least 10 years old;

(2) the vehicle owner meets applicable financial eligibility criteria;

(3) the vehicle meets the requirements provided by Subsections (e)(1) and (2); and

(4) the vehicle has passed a Texas Department of Motor Vehicles [Public Safety] motor vehicle safety inspection or safety and emissions inspection within the 15-month period before the application is submitted.

SECTION 5G.18. Section 382.216, Health and Safety Code, is amended to read as follows:

Sec. 382.216. INCENTIVES FOR VOLUNTARY PARTICIPATION IN VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM. The commission, the Texas Department of Transportation, and the commissioner of motor vehicles [Public Safety Commission] may, subject to federal limitations:

(1) encourage counties likely to exceed federal clean air standards to implement voluntary:

(A) motor vehicle emissions inspection and maintenance programs; and

(B) low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs;

(2) establish incentives for counties to voluntarily implement motor vehicle emissions inspection and maintenance programs and low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs; and

(3) designate a county that voluntarily implements a motor vehicle emissions inspection and maintenance program or a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program as a "Clean Air County" and give preference to a county designated as a Clean Air County in any federal or state clean air grant program.

SECTION 5G.19. Section 485.032(c), Health and Safety Code, is amended to read as follows:

(c) It is an affirmative defense to prosecution under this section that:

(1) the person making the delivery is an adult having supervisory responsibility over the person younger than 18 years of age and:

(A) the adult permits the use of the abusable volatile chemical only under the adult's direct supervision and in the adult's presence and only for its intended purpose; and

(B) the adult removes the chemical from the person younger than 18 years of age on completion of that use; or

(2) the person to whom the abusable volatile chemical was delivered presented to the defendant an apparently valid Texas driver's license or an identification certificate, issued by the Department of Public Safety of the State of Texas or the Texas Department of Motor Vehicles, as applicable, and containing a physical description consistent with the person's appearance, that purported to establish that the person was 18 years of age or older.

SECTION 5G.20. Section 758.001(2), Health and Safety Code, is amended to read as follows:

(2) "Department" means the Texas Department of Motor Vehicles [Public Safety].

SECTION 5G.21. Sections 780.002(a) and (b), Health and Safety Code, are amended to read as follows:

(a) On the first Monday of each month, the Texas Department of Motor Vehicles [Public Safety] shall remit the surcharges collected during the previous month under the driver responsibility program operated by that department under Chapter 708, Transportation Code, to the comptroller.

(b) The comptroller shall deposit 49.5 percent of the money received under Subsection (a) to the credit of the account established under this chapter and 49.5 percent of the money to the general revenue fund. The remaining one percent of the amount of the surcharges shall be deposited to the general revenue fund and may be appropriated only to the Texas Department of Motor Vehicles [Public Safety] for administration of the driver responsibility program operated by that department under Chapter 708, Transportation Code.

SECTION 5G.22. Section 113.001(4), Health and Safety Code, as added by Chapter 1186 (H.B. 120), Acts of the 79th Legislature, Regular Session, 2005, is repealed.

PART H. HUMAN RESOURCES CODE

SECTION 5H.01. Section 23.002, Human Resources Code, is amended to read as follows:

Sec. 23.002. LICENSING AUTHORITIES SUBJECT TO CHAPTER. In this chapter, "licensing authority" means:

(1) the Parks and Wildlife Department; and

(2) the Texas Department of Motor Vehicles [Public Safety of the State of Texas].

PART I. NATURAL RESOURCES CODE

SECTION 5I.01. Section 113.134, Natural Resources Code, is amended to read as follows:

Sec. 113.134. TEXAS DEPARTMENT OF MOTOR VEHICLES [PUBLIC SAFETY]. The Texas Department of Motor Vehicles [Public Safety] shall cooperate with the commission in the administration and enforcement of this chapter and the rules promulgated under this chapter to the extent that they are applicable to motor vehicles.

SECTION 5I.02. Section 116.074, Natural Resources Code, is amended to read as follows:

Sec. 116.074. COOPERATION OF THE TEXAS DEPARTMENT OF MOTOR VEHICLES [PUBLIC SAFETY]. The Texas Department of Motor Vehicles [Public Safety] shall cooperate with the commission in administering and enforcing this chapter and rules of the commission relating to regulation of motor vehicles required to be registered under this subchapter.

PART J. OCCUPATIONS CODE

SECTION 5J.01. Section 1805.052(b), Occupations Code, is amended to read as follows:

(b) Except as provided by Section 1805.053, a report required by this chapter must contain:

(1) the name and address of the seller of the business machine;

(2) a complete and accurate description of the business machine for which the report is made, including the serial number or other identifying marks or symbols;

(3) the seller's certification that the information is true and complete; and

(4) the seller's driver's license number or Department of Public Safety or Texas Department of Motor Vehicles, as applicable, identification certificate [card] number, as recorded by the dealer on physical presentation of the license or identification certificate [card] by the seller.

PART K. TAX CODE

SECTION 5K.01. Sections 11.43(f) and (m), Tax Code, are amended to read as follows:

(f) The comptroller, in prescribing the contents of the application form for each kind of exemption, shall ensure that the form requires an applicant to furnish the information necessary to determine the validity of the exemption claim. The form must require an applicant to provide the applicant's name and driver's license number, personal identification certificate number, or social security account number. The comptroller shall include on the forms a notice of the penalties prescribed by Section 37.10, Penal Code, for making or filing an application containing a false statement. The comptroller shall include, on application forms for exemptions that do not have to be claimed annually, a statement explaining that the application need not be made annually and that if the exemption is allowed, the applicant has a duty to notify the chief appraiser when the applicant's entitlement to the exemption ends. In this subsection:

(1) "Driver's license" has the meaning assigned that term by Section 521.001, Transportation Code.

(2) "Personal identification certificate" means a certificate issued by the Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, under Subchapter E, Chapter 521, Transportation Code.

(m) Notwithstanding Subsections (a) and (k), a person who receives an exemption under Section 11.13, other than an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older, in a tax year is entitled to receive an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older in the next tax year on the same property without applying for the exemption if the person becomes 65 years of age in that next year as shown by:

(1) information in the records of the appraisal district that was provided to the appraisal district by the individual in an application for an exemption under Section 11.13 on the property or in correspondence relating to the property; or

(2) the information provided by the Texas Department of Public Safety or the Texas Department of Motor Vehicles, as applicable, to the appraisal district under Section 521.049, Transportation Code.

PART L. VERNON'S TEXAS CIVIL STATUTES

SECTION 5L.01. Section 4, Chapter 232 (S.B. 839), Acts of the 67th Legislature, Regular Session, 1981 (Article 6419a, Vernon's Texas Civil Statutes), is amended to read as follows:

Sec. 4. RECORDS RELATING TO ACCIDENTS OR VIOLATIONS. If a person operating a railroad locomotive or train is involved in an accident with another train or a motor vehicle or is arrested for violation of a law relating to the person's operation of a locomotive or train, the number or other identifying information about the person's [operator's, commercial operator's, or chauffeur's] driver's license or commercial driver's license may not be included in any report of the accident or violation, and the person's involvement in the accident or violation may not be recorded in the person's individual driving record maintained by the Texas Department of Motor Vehicles [Public Safety].

SECTION 5L.02. Section 1, Chapter 466 (H.B. 1910), Acts of the 71st Legislature, Regular Session, 1989 (Article 6701j-2, Vernon's Texas Civil Statutes), is amended to read as follows:

Sec. 1. (a) All driving safety courses approved by the Texas Department of Motor Vehicles [Public Safety] or by a court as authorized by law must include instruction on railroad and highway grade crossing safety.

(b) The Texas Department of Motor Vehicles [Public Safety] shall by rule provide minimum standards of course content relating to operation of vehicles at railroad and highway grade crossings.

ARTICLE 6. TRANSFERS OF CERTAIN POWERS, DUTIES,

OBLIGATIONS, AND RIGHTS OF ACTION

SECTION 6.01. (a) All powers, duties, obligations, and rights of action of the Motor Vehicle Division of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles, and all powers, duties, obligations, and rights of action of the Texas Transportation Commission in connection or associated with the Motor Vehicle Division of the Texas Department of Transportation are transferred to the commissioner of motor vehicles on November 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the personnel, furniture, computers, other property and equipment, files, and related materials used by the Motor Vehicle Division of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Motor Vehicle Division of the Texas Department of Transportation that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Motor Vehicle Division of the Texas Department of Transportation that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles or the commissioner of motor vehicles, as applicable.

(e) A rule adopted by the Texas Transportation Commission or the director of the Texas Department of Transportation in connection with or relating to the Motor Vehicle Division of that department continues in effect until it is amended or repealed by the commissioner of motor vehicles or the Texas Department of Motor Vehicles, as applicable.

(f) The unobligated and unexpended balance of any appropriations made to the Texas Department of Transportation in connection with or relating to the Motor Vehicle Division of that department for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 6.02. (a) All powers, duties, obligations, and rights of action of the Vehicle Titles and Registration Division of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles, and all powers, duties, obligations, and rights of action of the Texas Transportation Commission in connection or associated with the Vehicle Titles and Registration Division of the Texas Department of Transportation are transferred to the commissioner of motor vehicles on November 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the personnel, furniture, computers, other property and equipment, files, and related materials used by the Vehicle Titles and Registration Division of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Vehicle Titles and Registration Division of the Texas Department of Transportation that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Vehicle Titles and Registration Division of the Texas Department of Transportation that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles or the commissioner of motor vehicles, as applicable.

(e) A rule adopted by the Texas Transportation Commission or the director of the Texas Department of Transportation in connection with or relating to the Vehicle Titles and Registration Division of that department continues in effect until it is amended or repealed by the commissioner of motor vehicles or the Texas Department of Motor Vehicles, as applicable.

(f) The unobligated and unexpended balance of any appropriations made to the Texas Department of Transportation in connection with or relating to the Vehicle Titles and Registration Division of that department for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 6.03. (a) All powers, duties, obligations, and rights of action of the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation under Article 4413(37), Revised Statutes, are transferred to the Texas Department of Motor Vehicles, and all powers, duties, obligations, and rights of action of the Texas Transportation Commission in connection or associated with the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation are transferred to the commissioner of motor vehicles on November 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the personnel, furniture, computers, other property and equipment, files, and related materials used by the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Automobile Burglary and Theft Prevention Authority Office of the Texas Department of Transportation that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles or the commissioner of motor vehicles, as applicable.

(e) A rule adopted by the Texas Transportation Commission or the director of the Texas Department of Transportation in connection with or relating to the Automobile Burglary and Theft Prevention Authority Office of that department continues in effect until it is amended or repealed by the commissioner of motor vehicles or the Texas Department of Motor Vehicles, as applicable.

(f) The unobligated and unexpended balance of any appropriations made to the Texas Department of Transportation in connection with or relating to the Automobile Burglary and Theft Prevention Authority Office of that department for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 6.04. (a) All powers, duties, obligations, and rights of action of the Traffic Operations Division of the Texas Department of Transportation related to the collection and analysis of traffic crash data are transferred to the Texas Department of Motor Vehicles on November 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the personnel, furniture, computers, other property and equipment, files, and related materials used by the Traffic Operations Division of the Texas Department of Transportation related to the collection and analysis of traffic crash data are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Traffic Operations Division of the Texas Department of Transportation related to the collection and analysis of traffic crash data that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Traffic Operations Division of the Texas Department of Transportation related to the collection and analysis of traffic crash data that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles or the commissioner of motor vehicles, as applicable.

(e) A rule adopted by the Texas Transportation Commission or the director of the Texas Department of Transportation in connection with or relating to the Traffic Operations Division of that department related to the collection and analysis of traffic crash data continues in effect until it is amended or repealed by the commissioner of motor vehicles or the Texas Department of Motor Vehicles, as applicable.

(f) The unobligated and unexpended balance of any appropriations made to the Traffic Operations Division of the Texas Department of Transportation related to the collection and analysis of traffic crash data for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 6.05. (a) All powers, duties, obligations, and rights of action of the Driver License Division of the Texas Department of Public Safety are transferred to the Texas Department of Motor Vehicles on the effective date of this Act, and all powers, duties, obligations, and rights of action of the Public Safety Commission in connection or associated with the Driver License Division of the Texas Department of Public Safety are transferred to the commissioner of motor vehicles on November 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the noncommissioned personnel, furniture, computers, other property and equipment, files, and related materials used by the Driver License Division of the Texas Department of Public Safety are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Driver License Division of the Texas Department of Public Safety that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Driver License Division of the Texas Department of Public Safety that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles or the commissioner of motor vehicles, as applicable.

(e) A rule adopted by the Public Safety Commission, the Texas Department of Public Safety, or the public safety director in connection with or relating to the Driver License Division of that department continues in effect until it is amended or repealed by the commissioner of motor vehicles or the Texas Department of Motor Vehicles, as applicable.

(f) The unobligated and unexpended balance of any appropriations made to the Driver License Division of the Texas Department of Public Safety for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 6.06. (a) All powers, duties, obligations, and rights of action of the Vehicle Inspection Service of the Texas Department of Public Safety are transferred to the Texas Department of Motor Vehicles on the effective date of this Act, and all powers, duties, obligations, and rights of action of the Public Safety Commission in connection or associated with the Vehicle Inspection Service of the Texas Department of Public Safety are transferred to the commissioner of motor vehicles on November 1, 2009.

(b) In connection with the transfers required by Subsection (a) of this section, the noncommissioned personnel, furniture, computers, other property and equipment, files, and related materials used by the Vehicle Inspection Service of the Texas Department of Public Safety are transferred to the Texas Department of Motor Vehicles.

(c) The Texas Department of Motor Vehicles shall continue any proceeding involving the Vehicle Inspection Service of the Texas Department of Public Safety that was brought before the effective date of this Act in accordance with the law in effect on the date the proceeding was brought, and the former law is continued in effect for that purpose.

(d) A certificate, license, document, permit, registration, or other authorization issued by the Vehicle Inspection Service of the Texas Department of Public Safety that is in effect on the effective date of this Act remains valid for the period for which it was issued unless suspended or revoked by the Texas Department of Motor Vehicles or the commissioner of motor vehicles, as applicable.

(e) A rule adopted by the Public Safety Commission, the Texas Department of Public Safety, or the public safety director in connection with or relating to the Vehicle Inspection Service of that department continues in effect until it is amended or repealed by the commissioner of motor vehicles or the Texas Department of Motor Vehicles, as applicable.

(f) The unobligated and unexpended balance of any appropriations made to the Vehicle Inspection Service of the Texas Department of Public Safety for the state fiscal biennium ending August 31, 2009, is transferred and reappropriated to the Texas Department of Motor Vehicles for the purpose of implementing the powers, duties, obligations, and rights of action transferred to that department under Subsection (a) of this section.

SECTION 6.07. Not later than October 31, 2009, the commissioner of motor vehicles shall enter into a memorandum of understanding with the Texas Department of Transportation to implement Sections 6.01-6.04 of this article.

SECTION 6.08. Not later than October 31, 2009, the commissioner of motor vehicles shall enter into a memorandum of understanding with the Department of Public Safety of the State of Texas to implement Sections 6.05 and 6.06 of this article.

ARTICLE 7. APPOINTMENT OF COMMISSIONER OF MOTOR VEHICLES

SECTION 7.01. Not later than October 1, 2009, the governor shall appoint the commissioner of motor vehicles in accordance with Subchapter B, Chapter 1001, Transportation Code, as added by this Act.

ARTICLE 8. EFFECTIVE DATE

SECTION 8.01. This Act takes effect September 1, 2009.