Amend CSHB 31 by adding the following appropriately numbered SECTIONS to the bill and renumbering subsequent SECTIONS of the bill accordingly:

SECTION ____.  Section 521.025, Transportation Code, is amended to read as follows:

Sec. 521.025.  LICENSE REQUIRED; LICENSE TO BE CARRIED AND EXHIBITED ON DEMAND; CRIMINAL PENALTY. (a) A person, other than a person expressly exempted under this chapter, may not operate a motor vehicle on a highway in this state unless the person holds a driver's license issued under this chapter.

(a-1)  A person required to hold a license under Subsection (a) [Section 521.021] shall:

(1)  have in the person's possession while operating a motor vehicle the class of driver's license appropriate for the type of vehicle operated; and

(2)  display the license on the demand of a magistrate, court officer, or peace officer.

(b)  A peace officer may stop and detain a person operating a motor vehicle to determine if the person has a driver's license as required by this section.

(c)  A person who violates Subsection (a) or (a-1) [this section] commits an offense. An offense under this section [subsection] is a misdemeanor punishable by a fine not to exceed $200, except that:

(1)  for a second conviction within one year after the date of the first conviction, the offense is a misdemeanor punishable by a fine of not less than $25 or more than $200; [and]

(2)  for a third or subsequent conviction within one year after the date of the second conviction the offense is a misdemeanor punishable by:

(A)  a fine of not less than $25 or more than $500;

(B)  confinement in the county jail for not less than 72 hours or more than six months; or

(C)  both the fine and confinement; and

(3)  for an offense under Subsection (a), the offense is a Class B misdemeanor if it is shown on the trial of the offense that the person at the time of the offense was committing another offense under Subtitle C, Title 7, that caused property damage, bodily injury, or death.

(d)  It is a defense to prosecution under Subsection (a-1) [this section] if the person charged produces in court a driver's license:

(1)  issued to that person;

(2)  appropriate for the type of vehicle operated; and

(3)  valid at the time of the arrest for the offense.

(e)  The judge of each court shall report promptly to the department each conviction obtained in the court under this section.

(f)  The court may assess a defendant an administrative fee not to exceed $10 if a charge under Subsection (a-1) [this section] is dismissed because of the defense listed under Subsection (d).

SECTION ____.  The heading to Subchapter J, Chapter 601, Transportation Code, is amended to read as follows:

SUBCHAPTER J. IMPOUNDMENT OF CERTAIN MOTOR VEHICLES INVOLVED IN ACCIDENT [VEHICLE NOT REGISTERED IN THIS STATE]

SECTION ____.  Section 601.291, Transportation Code, is amended to read as follows:

Sec. 601.291.  APPLICABILITY OF SUBCHAPTER. (a) This subchapter applies only to the owner or operator of a motor vehicle that[:

[(1)     is not registered in this state; and

[(2)]  is involved in a motor vehicle accident in this state that results in bodily injury, death, or damage to the property of one person to an apparent extent of at least $500 and:

(2)  is operated by a person who fails to hold a license required under Chapter 521.

SECTION ____.  Section 601.293(b), Transportation Code, is amended to read as follows:

(b)  If the vehicle is not registered in this state or if the magistrate determines the operator is not in compliance with the license requirements under Chapter 521, the [The] magistrate shall conduct an inquiry on the issues of negligence and liability for bodily injury, death, or property damage sustained in the accident.

SECTION ____.  Section 601.296, Transportation Code, is amended by adding Subsection (a-1) to read as follows:

SECTION ____.  Section 708.104(a), Transportation Code, is amended to read as follows:

(a)  Each year the department shall assess a surcharge on the license of a person who during the preceding 36-month period has been convicted of an offense under Section 521.025(a) [521.021].

SECTION ____.  Section 521.021, Transportation Code, is repealed.

SECTION ____.  The change in law made by this Act applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For the purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.