82R14372 T

By: Harper-Brown H.B. No. 3296

A BILL TO BE ENTITLED

AN ACT

relating to transferring the motor vehicle inspection program from the Texas Department of Public Safety to the Texas Department of Motor Vehicles.

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

SECTION 1. Subchapter G, Chapter 382, Health and Safety Code Code, is amended by amending Section 382.201 to read as follows:

Sec. 382.201. DEFINITIONS. In this subchapter:

(1) "Affected county" means a county with a motor vehicle emissions inspection and maintenance program established under Section 548.301, Transportation Code.

(2) "Commercial vehicle" means a vehicle that is owned or leased in the regular course of business of a commercial or business entity.

(3) "Department" means the Texas Department of Motor Vehicles

(4)(3) "Fleet vehicle" means a motor vehicle operated as one of a group that consists of more than 10 motor vehicles and that is owned and operated by a public or commercial entity or by a private entity other than a single household.

(5)(4) "Participating county" means an affected county in which the commissioners court by resolution has chosen to implement a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program authorized by Section 382.209.

(6)(5) "Retrofit" means to equip, or the equipping of, an engine or an exhaust or fuel system with new, emissions-reducing parts or equipment designed to reduce air emissions and improve air quality, after the manufacture of the original engine or exhaust or fuel system, so long as the parts or equipment allow the vehicle to meet or exceed state and federal air emissions reduction standards.

(7)(6) "Retrofit equipment" means emissions-reducing equipment designed to reduce air emissions and improve air quality that is installed after the manufacture of the original engine or exhaust or fuel system.

(8)(7) "Vehicle" includes a fleet vehicle.

SECTION 2. Section 382.202, Health and Safety Code Code, is amended to read as follows:

Sec. 382.202. VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM. (a) The commission by resolution may request the department 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.

(b) The commission by rule may require emissions-related inspection and maintenance of land vehicles, including testing exhaust emissions, examining emission control devices and systems, verifying compliance with applicable standards, and other requirements as provided by federal law or regulation.

(c) If the program is established under this section, the commission:

(1) shall adopt vehicle emissions inspection and maintenance requirements for certain areas as required by federal law or regulation; and

(2) shall adopt vehicle emissions inspection and maintenance requirements for counties not subject to a specific federal requirement in response to a formal request by resolutions adopted by the county and the most populous municipality within the county according to the most recent federal decennial census.

(d) On adoption of a resolution by the commission and after proper notice, the department Department of Public Safety of the State of Texas shall implement a system that requires, as a condition of obtaining an electronic inspection authorization 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 department Department of 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.

(e) The department and the commission, at the time of vehicle registration or reregistration, commission may assess fees for vehicle emissions-related inspections performed at inspection or reinspection facilities authorized and licensed by the department commission in amounts reasonably necessary to recover the costs of developing, administering, evaluating, and enforcing the vehicle emissions inspection and maintenance program. If the program relies on privately operated or contractor-operated inspection or reinspection stations, an appropriate portion of the fee as determined by department commission rule may be retained by the station owner, contractor, or operator to recover the cost of performing the inspections and provide for a reasonable margin of profit. Any portion of the fee collected by the commission is a Clean Air Act fee under Section 382.0622.

(f) The department commission:

(1) shall, no less frequently than biennially, review the fee established under Subsection (e); and

(2) may use part of the fee collected under Subsection (e) to provide incentives, including financial incentives, for participation in the testing network to ensure availability of an adequate number of testing stations.

(g) The department commission shall:

(1) use part of the fee collected under Subsection (e) to fund low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs created under Section 382.209; and

(2) to the extent practicable, distribute available funding created under Subsection (e) to participating counties in reasonable proportion to the amount of fees collected under Subsection (e) in those counties or in the regions in which those counties are located.

(h) Regardless of whether different tests are used for different vehicles as determined under Section 382.205, the department commission may:

(1) set fees assessed under Subsection (e) at the same rate for each vehicle in a county or region; and

(2) set different fees for different counties or regions.

(i) The commission shall examine the efficacy of annually inspecting diesel vehicles for compliance with applicable federal emission standards, compliance with an opacity or other emissions-related standard established by commission rule, or both and shall implement that inspection program if the commission determines the program would minimize emissions. For purposes of this subsection, a diesel engine not used in a vehicle registered for use on public highways is not a diesel vehicle.

(j) The commission may not establish, before January 1, 2004, vehicle fuel content standards to provide for vehicle fuel content for clean motor vehicle fuels for any area of the state that are more stringent or restrictive than those standards promulgated by the United States Environmental Protection Agency applicable to that area except as provided in Subsection (o) unless the fuel is specifically authorized by the legislature.

(k) The commission by rule may establish classes of vehicles that are exempt from vehicle emissions inspections and by rule may establish procedures to allow and review petitions for the exemption of individual vehicles, according to criteria established by commission rule. Rules adopted by the commission under this subsection must be consistent with federal law. The department commission by rule may establish fees to recover the costs of administering this subsection. Fees collected under this subsection shall be deposited to the credit of the clean air account, an account in the general revenue fund, and may be used only for the purposes of this section.

(l) Except as provided by this subsection, a person who sells or transfers ownership of a motor vehicle for which an electronic inspection authorization a vehicle emissions inspection certificate has been issued is not liable for the cost of emission control system repairs that are required for the vehicle subsequently to receive an electronic inspection authorization emissions inspection certificate. This subsection does not apply to repairs that are required because emission control equipment or devices on the vehicle were removed or tampered with before the sale or transfer of the vehicle.

(m) The department commission may conduct audits to determine compliance with this section.

(n) The department commission may suspend the emissions inspection program as it applies to pre-1996 vehicles in an affected county if:

(1) the department certifies that the number of pre-1996 vehicles in the county subject to the program is 20 percent or less of the number of those vehicles that were in the county on September 1, 2001; and

(2) an alternative testing methodology that meets or exceeds United States Environmental Protection Agency requirements is available.

(o) The commission may not require the distribution of Texas low-emission diesel as described in revisions to the State Implementation Plan for the control of ozone air pollution prior to February 1, 2005.

(p) The commission may consider, as an alternative method of compliance with Subsection (o), fuels to achieve equivalent emissions reductions.

(q) Repealed by Acts 2007, 80th Leg., R.S., Ch. 262, Sec. 1.10(2), eff. June 8, 2007.

(r) Repealed by Acts 2007, 80th Leg., R.S., Ch. 262, Sec. 1.10(2), eff. June 8, 2007.

SECTION 3. Section 382.203 (c), Health and Safety Code Code, is amended to read as follows: (c) The department Department of 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 4. Section 382.204 (a), Health and Safety Code Code, is amended to read as follows: (a) The commission and the department Department of 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 5. Section 382.205, Health and Safety Code Code, is amended to read as follows:

Sec. 382.205. INSPECTION EQUIPMENT AND PROCEDURES. (a) The department commission by rule may adopt:

(1) standards and specifications for motor vehicle emissions testing equipment;

(2) recordkeeping and reporting procedures; and

(3) measurable emissions standards a vehicle must meet to pass the inspection.

(b) In adopting standards and specifications under Subsection (a), the department commission may require different types of tests for different vehicle models.

(c) In consultation with the Department of Public Safety of the State of Texas, the commission The department 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 department 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 department 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 department Department of 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 electronic inspection authorization emissions inspection certificate.

(e) The commission and the department Department of 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 department Department of Public Safety consider appropriate.

(f) Rules and procedures under this section must ensure that approved repair facilities participating in a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program established under Section 382.209 have access to adequate testing equipment.

(g) Subject to Subsection (h), the commission and the department Department of 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.

(h) A rule adopted under Subsection (g) may not be more restrictive than federal regulations governing vehicle emissions testing.

SECTION 6. Section 382.206, Health and Safety Code Code, is amended to read as follows: (a) The commission and the Department of 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.

(b) The department commission shall:

(1) report the information to the United States Environmental Protection Agency; and

(2) compare the information on inspection results with registration information for enforcement purposes.

SECTION 7. Section 382.207, Health and Safety Code Code, is amended to read as follows:

Sec. 382.207. INSPECTION STATIONS; QUALITY CONTROL AUDITS. (a) The Department of 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 Department of Public Safety shall make all reasonable efforts to preserve the present decentralized system.

(c) The department, after After consultation with the Texas Department of Transportation, the commission shall require state and local transportation planning entities designated by the department commission to prepare long-term projections of the combined impact of significant planned transportation system changes on emissions and air quality. The projections shall be prepared using air pollution estimation methodologies established jointly by the commission and the Texas Department of Motor Vehicles Transportation. This subsection does not restrict the Texas Department of Transportation's function as the transportation planning body for the state or its role in identifying and initiating specific transportation-related projects in the state.

(d) The Department of 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 Department of 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.

(f) The department commission may contract with one or more private entities to operate a program established under this section.

(g) In addition to other procedures established by the commission, the commission shall establish procedures by which a private entity with whom the commission has entered into a contract to operate a program established under this section may agree to perform:

(1) testing at a fleet facility or dealership using mobile test equipment;

(2) testing at a fleet facility or dealership using test equipment owned by the fleet or dealership but calibrated and operated by the private entity's personnel; or

(3) testing at a fleet facility or dealership using test equipment owned and operated by the private entity and installed at the fleet or dealership facility.

(h) The fee for a test conducted as provided by Subsection (g) shall be set by the commission in an amount not to exceed twice the fee otherwise provided by law or by rule of the commission. An appropriate portion of the fee, as determined by the commission, may be remitted by the private entity to the fleet facility or dealership.

SECTION 8. Section 382.208 (a), Health and Safety Code Code, is amended to read as follows: (a) Except as provided by Section 382.202(j) or another provision of this chapter, the commission and the department shall coordinate with federal, state, and local transportation planning agencies to develop and implement transportation programs and other measures necessary to demonstrate and maintain attainment of national ambient air quality standards and to protect the public from exposure to hazardous air contaminants from motor vehicles.

SECTION 9. Sections 382.209 (a),(b),(d). (e), and(j), Health and Safety Code Code, are amended to read as follows:

Sec. 382.209. LOW-INCOME VEHICLE REPAIR ASSISTANCE, RETROFIT, AND ACCELERATED VEHICLE RETIREMENT PROGRAM. (a) The commission and the Texas Department of Motor Vehicles Board 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 department commission audits.

(b) The department commission shall provide funding for local low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs with available funds collected under Section 382.202, 382.302, or other designated and available funds. The programs shall be administered in accordance with Chapter 783, Government Code. Program costs may include call center management, application oversight, invoice analysis, education, outreach, and advertising. Not more than 10 percent of the money provided to a local low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program under this section may be used for the administration of the programs, including program costs.

(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 Department of 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, and the Texas Department of Motor Vehicles, 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.

(j) The department commission may provide monetary or other compensatory assistance under the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program for a replacement vehicle or replacement assistance for a pre-1996 model year replacement vehicle that passes the required United States Environmental Protection Agency Start-Up Acceleration Simulation Mode Standards emissions test but that would have failed the United States Environmental Protection Agency Final Acceleration Simulation Mode Standards emissions test or failed to meet some other criterion determined by the department or the commission; provided, however, that a replacement vehicle under this subsection must be a qualifying motor vehicle.

SECTION 10. Sections 382.210 (a), (c), and (e), Health and Safety Code Code, are amended to read as follows: (a) The department commission by rule shall adopt guidelines to assist a participating county in implementing a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program authorized under Section 382.209. The guidelines at a minimum shall recommend:

(1) a minimum and maximum amount for repair assistance;

(2) a minimum and maximum amount toward the purchase price of a replacement vehicle qualified for the accelerated retirement program, based on vehicle type and model year, with the maximum amount not to exceed:

(A) $3,000 for a replacement car of the current model year or the previous three model years, except as provided by Paragraph (C);

(B) $3,000 for a replacement truck of the current model year or the previous two model years, except as provided by Paragraph (C); and

(C) $3,500 for a replacement hybrid vehicle of the current model year or the previous model year;

(3) criteria for determining eligibility, taking into account:

(A) the vehicle owner's income, which may not exceed 300 percent of the federal poverty level;

(B) the fair market value of the vehicle; and

(C) any other relevant considerations;

(4) safeguards for preventing fraud in the repair, purchase, or sale of a vehicle in the program; and

(5) procedures for determining the degree and amount of repair assistance a vehicle is allowed, based on:

(A) the amount of money the vehicle owner has spent on repairs;

(B) the vehicle owner's income; and

(C) any other relevant factors.

(c) The department commission may adopt any revisions made by the federal government to the emissions standards described by Subsection (b)(1).

(e) In rules adopted under this section, the department commission shall require a mandatory procedure that:

(1) produces a document confirming that a person is eligible to purchase a replacement vehicle in the manner provided by this chapter, and the amount of money available to the participating purchaser;

(2) provides that a person who seeks to purchase a replacement vehicle in the manner provided by this chapter is required to have the document required by Subdivision (1) before the person enters into negotiation for a replacement vehicle in the manner provided by this chapter; and

(3) provides that a participating dealer who relies on a document issued as required by Subdivision (1) has no duty to otherwise confirm the eligibility of a person to purchase a replacement vehicle in the manner provided by this chapter.

SECTION 11. Sections 382.213, (a) and (h), Health and Safety Code Code, is amended to read as follows: (a) Except as provided by Subsection (c) and Subdivision (5) of this subsection, a vehicle retired under an accelerated vehicle retirement program authorized by Section 382.209 may not be resold or reused in its entirety in this or another state. Subject to the provisions of Subsection (i), the automobile dealer who takes possession of the vehicle must submit to the program administrator proof, in a manner adopted by the department commission, that the vehicle has been retired. The vehicle must be:

(1) destroyed;

(2) recycled;

(3) dismantled and its parts sold as used parts or used in the program;

(4) placed in a storage facility of a program established under Section 382.209 and subsequently destroyed, recycled, or dismantled and its parts sold or used in the program; or

(5) repaired, brought into compliance, and used as a replacement vehicle under Section 382.209(d)(2).

(h) For purposes of this section, the department commission shall adopt rules defining "emissions control equipment" and "engine."

SECTION 12. Section 382.216, Health and Safety Code Code, is amended to read as follows:

Sec. 382.216. INCENTIVES FOR VOLUNTARY PARTICIPATION IN VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM. The commission, and the Texas Department of Transportation, and the 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 13. Section 382.220, (b) and (d) Health and Safety Code, is amended to read as follows: (b) A program under this section must be implemented in consultation with the department commission and may include a program to:

(1) expand and enhance the AirCheck Texas Repair and Replacement Assistance Program;

(2) develop and implement programs or systems that remotely determine vehicle emissions and notify the vehicle's operator;

(3) develop and implement projects to implement the commission's smoking vehicle program;

(4) develop and implement projects for coordinating with local law enforcement officials to reduce the number of illegally inspected vehicles use of counterfeit state inspection stickers by providing local law enforcement officials with funds to identify vehicles with counterfeit state inspection stickers and to carry out appropriate actions;

(5) develop and implement programs to enhance transportation system improvements; or

(6) develop and implement new air control strategies designed to assist local areas in complying with state and federal air quality rules and regulations.

(d) Fees collected under Sections 382.202 and 382.302 may be used, in an amount not to exceed $5 million per fiscal year, for projects described by Subsection (b). The fees shall be made available only to counties participating in the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs created under Section 382.209 and only on a matching basis, whereby the department commission provides money to a county in the same amount that the county dedicates to a project authorized by Subsection (b). The department commission may reduce the match requirement for a county that proposes to develop and implement independent test facility fraud detection programs, including the use of remote sensing technology for coordinating with law enforcement officials to detect, prevent, and prosecute the illegal inspection of motor vehicles use of counterfeit state inspection stickers.

SECTION 14. Subchapter H, Chapter 382, Health and Safety Code Code, is amended by amending Section 382.302 (b) and (c) to read as follows: (b) After approving a request made under Subsection (a), the commission by resolution may request the Texas Department of Motor Vehicles Board Public Safety Commission to establish motor vehicle emissions inspection and maintenance program requirements for the participating county under Subchapter F, Chapter 548, Transportation Code, in accordance with this section and rules adopted under this section. The motor vehicle emissions inspection and maintenance program requirements for the participating county may include exhaust emissions testing, emissions control devices and systems inspections, or other testing methods that meet or exceed United States Environmental Protection Agency requirements, and a remote sensing component as provided by Section 382.204. The motor vehicle emissions inspection and maintenance program requirements adopted for the participating county may apply to all or to a defined subset of vehicles described by Section 382.203.

(c) The department and the commission, at the time of vehicle registration or reregistration, may assess fees for vehicle emissions-related inspections performed at inspection or reinspection facilities authorized and licensed by the department in amounts reasonably necessary to recover the costs of developing, administering, evaluating, and enforcing the vehicle emissions inspection and maintenance program. The commission may assess a fee for a vehicle inspection performed in accordance with a program established under this section. The fee must be in an amount reasonably necessary to recover the costs of developing, administering, evaluating, and enforcing the participating county's motor vehicle emissions inspection and maintenance program. An appropriate part of the fee as determined by commission rule may be retained by the station owner, contractor, or operator to recover the cost of performing the inspection and provide for a reasonable margin of profit.

SECTION 15. Subchapter A, Chapter 501, Transportation Code, is amended by amending Section 501.0276 to read as follows:

Sec. 501.0276. DENIAL OF TITLE RECEIPT OR CERTIFICATE OF TITLE FOR FAILURE TO PROVIDE PROOF OF VEHICLE INSPECTION EMISSIONS TESTING. A county assessor-collector shall may not issue a title receipt and the department shall may not issue a certificate of title for a vehicle subject to Section 548 unless proof that the vehicle has passed a vehicle inspection emissions test as required by that section, in a form authorized by that section, is presented to the county assessor-collector with the application for certificate of title.

SECTION 16. Subchapter A, Chapter 502, Transportation Code, is amended by amending Section 502.009 to read as follows:

Sec. 502.009. MOTOR VEHICLE EMISSIONS INSPECTION AND MAINTENANCE REQUIREMENTS. (a) The department Department of Public Safety shall ensure compliance with the motor vehicle emissions inspection and maintenance program required by Section 548 through a vehicle registration based denial system. 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 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 Chapter 548.

(c) The county tax assessor-collector may not register a vehicle denied registration under Subsection (b) unless the tax assessor-collector has verification that the registered vehicle owner is in compliance with Subchapter F, Chapter 548.

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

(e) A county tax assessor-collector is not liable to any person for refusing to register a motor vehicle because of the person's failure to provide verification of the person's compliance with Subchapter F, Chapter 548.

SECTION 17. Subchapter A, Chapter 548, Transportation Code, is amended by amending Section 548.001 to read as follows:

Sec. 548.001. DEFINITIONS. In this chapter:

(1) "Commercial motor vehicle" means a self-propelled or towed vehicle, other than a farm vehicle with a gross weight, registered weight, or gross weight rating of less than 48,000 pounds, that is used on a public highway to transport passengers or cargo if:

(A) the vehicle, including a school activity bus as defined in Section 541.201, or combination of vehicles has a gross weight, registered weight, or gross weight rating of more than 26,000 pounds;

(B) the vehicle, including a school activity bus as defined in Section 541.201, is designed or used to transport more than 15 passengers, including the driver; or

(C) the vehicle is used to transport hazardous materials in a quantity requiring placarding by a regulation issued under the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.).

(2) "Commission" means the Public Safety Commission.

(3) "Conservation commission" means the Texas Commission on Environmental Quality.

(4) "Department" means the Department of Motor Vehicles Public Safety.

(5) "Farm vehicle" has the meaning assigned by the federal motor carrier safety regulations.

(6) "Federal motor carrier safety regulation" has the meaning assigned by Section 644.001.

(7) "Inspection station" means a facility certified to conduct inspections of vehicles under this chapter.

(8) "Inspector" means an individual certified to conduct inspections of vehicles under this chapter.

(9) "Nonattainment area" means an area so designated within the meaning of Section 107(d) of the Clean Air Act (42 U.S.C. Section 7407).

(10) "Board" means Texas Department of Motor Vehicles Board

(11) "electronic inspection authorization" means an inspection authorization that is generated electronically through the vehicle inspection database that creates a unique nonduplicating authorization number assigned to the vehicle's inspection report upon successful passage of an inspection. The term 'electronic inspection authorization' shall include the term 'inspection certificate' during the transition period to use of electronic inspection authorizations.

SECTION 18. Section 548.004, (c) Transportation Code, is amended to read as follows: (c) The facility may inspect only a vehicle owned by the political subdivision or state agency. An officer, employee, or inspector of the subdivision or agency may not place an inspection certificate received from the department under this section on a vehicle not owned by the subdivision or agency.

SECTION 19. Section 548.006, Transportation Code, is amended to read as follows:

Sec. 548.006. ADVISORY COMMITTEE. (a) An advisory committee consisting of a minimum of ten {nine} members shall:

(1) advise the conservation commission and the department on the conservation commission's and department's rules relating to the operation of the vehicle inspection program under this chapter;

(2) make recommendations to the conservation commission and the department relating to the content of rules involving the operation of the vehicle inspection program; and

(3) perform any other advisory function requested by the conservation commission or the department in administering this chapter and Chapter 382, Health and Safety Code.

(b) The members of the Department of Motor Vehicles Board commission shall appoint {seven} members of the committee as follows:

(1) four persons to represent inspection station owners and operators, with two of those persons from counties conducting vehicle emissions testing under Subchapter F and two of those persons from counties conducting safety only inspections, appointed based on recommendations provided by an existing association of owners and operators;

(2) one person to represent manufacturers of motor vehicle emissions inspection devices;

(3) two persons {one person) to represent independent vehicle {equipment} repair technicians, appointed based on recommendations provided by an existing association of repair technicians; and

(4) two persons, appointed by the Department of Motor Vehicles, to represent the public at large. {one person to represent the public interest.}

(c) In addition to members appointed under subsection (b); each regional council of governments created under Chapter 391, Local Government Code, may appoint 1 member to the committee.

(d)(c) The presiding officer of the conservation commission and the presiding officer of the Department of Motor Vehicles commission shall each appoint one member of the committee who will alternate serving as the presiding officer of the committee.

(e)(d) Committee members serve staggered three-year terms.

(f)(e) A vacancy on the committee is filled in the same manner as other appointments to the committee.

(g)(f) A member of the committee is not entitled to compensation, but is entitled to reimbursement of the member's travel expenses as provided in the General Appropriations Act for state employees.

(h)(g) The committee may elect an assistant presiding officer and a secretary from among its members and may adopt rules for the conduct of its own activities.

(i)(h) The committee is entitled to review and comment on rules to be considered for adoption by the conservation commission, the commission, or the department_under this chapter or Chapter 382, Health and Safety Code, before the rules are adopted.

(j)(i) The committee shall hold a meeting at least once each quarter.

(k)(j) Chapter 2110, Government Code, does not apply to the committee.

(l) The committee shall provide a report to the Legislature, at minimum, on a bi-annual basis regarding the review of any changes to rule or statute.

SECTION 20. Section 548.008, Transportation Code, is amended to read as follows:

Sec. 548.008. VEHICLE INSPECTION PROGRAM DIRECTOR. (a) The vehicle inspection program is managed by a program director. The program director may not be a commissioned officer.

(b) The office of the vehicle inspection program director must be located in Austin, Texas.

(c) The duties of the program director include:

(1) responsibility for the quality of the vehicle inspection program;

(2) coordination of the regional offices;

(3) compilation of regional and statewide performance data;

(4) the establishment of best practices and distribution of those practices to the regional offices;

(5) setting goals for the entire program, in consultation with the Department of Motor Vehicles Board public safety director or the public safety director's designee, and setting goals for each regional office in consultation with the regional managers;

(6) monitoring the progress toward the goals set in Subdivision (5) and evaluating the program based on that progress; and

(7) coordination with the Texas Highway Patrol, local law enforcement personnel, and councils of government to enforce provisions related to vehicle inspection.

(d) The regional offices shall make reports as requested by the program director.

SECTION 21. Subchapter B, Chapter 548, Transportation Code, is amended by amending Section 548.053 to read as follows:

Sec. 548.053. REINSPECTION OF VEHICLE REQUIRING ADJUSTMENT, CORRECTION, OR REPAIR. (a) If an inspection discloses the necessity for adjustment, correction, or repair, an inspection station or inspector may not issue an electronic inspection authorization or passing vehicle inspection report inspection certificate until the adjustment, correction, or repair is made. The owner of the vehicle may have the adjustment, correction, or repair made by a qualified person of the owner's choice, subject to reinspection. The vehicle shall be reinspected once free of charge within 15 days after the date of the original inspection, not including the date the original inspection is made, at the same inspection station after the adjustment, correction, or repair is made.

(b) A vehicle that is inspected and is subsequently involved in an accident affecting the safe operation of an item of inspection must be reinspected following repair. The reinspection must be at an inspection station and shall be treated and charged as an initial inspection.

(c) If a vehicle subject to this chapter is damaged to the apparent extent that it would require repair before passing inspection, the investigating officer shall remove the inspection certificate from the vehicle windshield and give the operator of the vehicle a dated receipt. The vehicle must be reinspected not later than the 30th day after the date shown on the receipt.

SECTION 22. Subchapter C, Chapter 548, Transportation Code, is amended by amending Section 548.101 to read as follows:

Sec. 548.101. GENERAL ONE-YEAR INSPECTION PERIOD. (a) Except as provided by Section 548.102, the department shall require an annual inspection. The department shall set the periods of inspection and may make rules with respect to those periods.

(b) A vehicle that is required to be inspected in accordance with this section may be inspected 90 days prior to midnight of the last day of the month as designated by the vehicle registration sticker.

(c) A vehicle subject to inspection in accordance with this section must be inspected by the last day of the month in which the registration on the vehicle expires.

(d) An electronic inspection authorization issued under this chapter expires at midnight of the last day of the month designated by the vehicle registration sticker of the following year.

SECTION 23. Section 548.104, Transportation Code, is amended to read as follows:

Sec. 548.104. EQUIPMENT-RELATED PREREQUISITES TO ISSUANCE OF ELECTRONIC INSPECTION AUTHORIZATION INSPECTION CERTIFICATE. (a) The department commission shall adopt uniform standards of safety applicable to each item required to be inspected by Section 548.051. The standards and the list of items to be inspected shall be posted in each inspection station.

(b) An inspection station or inspector may issue an electronic inspection authorization or passing vehicle inspection report inspection certificate only if the vehicle is inspected and found to be in proper and safe condition and to comply with this chapter and the rules adopted under this chapter.

(c) An inspection station or inspector may inspect only the equipment required to be inspected by Section 548.051 and may not:

(1) falsely and fraudulently represent to an applicant that equipment required to be inspected must be repaired, adjusted, or replaced before the vehicle will pass inspection; or

(2) require an applicant to have another part of the vehicle or other equipment inspected as a prerequisite for issuance of an electronic inspection authorization or passing vehicle inspection report inspection certificate.

(d) An inspection station or inspector may not issue an electronic inspection authorization or passing vehicle inspection report inspection certificate for a vehicle equipped with:

(1) a carburetion device permitting the use of liquefied gas alone or interchangeably with another fuel, unless a valid liquefied gas tax decal issued by the comptroller is attached to the lower right-hand corner of the front windshield of the vehicle on the passenger side; or

(2) a sunscreening device prohibited by Section 547.613, except that the department by rule shall provide procedures for issuance of an electronic inspection authorization or passing vehicle inspection report inspection certificate for a vehicle exempt under Section 547.613(c).

(e) The department shall adopt rules relating to inspection of and issuance of an electronic inspection authorization or passing vehicle inspection report inspection certificate for a moped.

SECTION 24. Section 548.105, Transportation Code, is amended to read as follows:

Sec. 548.105. EVIDENCE OF FINANCIAL RESPONSIBILITY AS PREREQUISITE TO ISSUANCE OF INSPECTION CERTIFICATE. (a) An inspection station or inspector may not issue an electronic inspection authorization or passing vehicle inspection report inspection certificate for a vehicle unless the owner or operator furnishes evidence of financial responsibility at the time of inspection. Evidence of financial responsibility may be shown in the manner specified under Section 601.053(a). A personal automobile insurance policy used as evidence of financial responsibility must be written for a term of 30 days or more as required by Article 5.06, Insurance Code.

(b) An inspection station is not liable to a person, including a third party, for issuing an electronic inspection authorization or passing vehicle inspection report inspection certificate in reliance on evidence of financial responsibility furnished to the station. An inspection station that is the seller of a motor vehicle may rely on an oral insurance binder.

SECTION 25. Subchapter D, Chapter 548, Transportation Code, is amended by amending Section 548.201 to read as follows:

Sec. 548.201. COMMERCIAL MOTOR VEHICLE INSPECTION PROGRAM. (a) The department commission shall establish an inspection program for commercial motor vehicles that:

(1) meets the requirements of federal motor carrier safety regulations; and

(2) requires a commercial motor vehicle registered in this state to pass an annual inspection of all safety equipment required by the federal motor carrier safety regulations.

(b) A program under this section also applies to any:

(1) vehicle or combination of vehicles with a gross weight rating of more than 10,000 pounds that is operated in interstate commerce and registered in this state;

(2) school activity bus, as defined in Section 541.201, that has a gross weight, registered weight, or gross weight rating of more than 26,000 pounds, or is designed to transport more than 15 passengers, including the driver; and

(3) school bus that will operate at a speed authorized by Section 545.352(b)(5)(A).

SECTION 26. Section 548.203, Transportation Code, is amended to read as follows:

Sec. 548.203. EXEMPTIONS. The department commission by rule may exempt a type of commercial motor vehicle from the application of this subchapter if the vehicle:

(1) was manufactured before September 1, 1995;

(2) is operated only temporarily on a highway of this state and at a speed of less than 30 miles per hour; and

(3) complies with Section 548.051 and each applicable provision in Title 49, Code of Federal Regulations.

SECTION 27. Subchapter E, Chapter 548, Transportation Code, is amended by amending Sections 548.251 through 548.255 to read as follows:

Sec. 548.251. DEPARTMENT TO PROVIDE ELECTRONIC INSPECTION AUTHORIZATIONS INSPECTION CERTIFICATES AND VERIFICATION FORMS. The department shall provide or transmit serially numbered electronic inspection authorizations inspection certificates and verification forms to inspection stations. The department may issue a unique inspection certificate for:

(1) a commercial motor vehicle inspected under Section 548.201; or

(2) a vehicle inspected under Subchapter F.

Sec. 548.252. SAFEKEEPING AND CONTROL OF INSPECTION CERTIFICATES AND VERIFICATION FORMS. On being licensed, an inspector or owner of an inspection station shall:

(1) provide for the safekeeping of inspection certificates and verification forms;

(2) safeguard the certificates and forms against theft, loss, or damage;

(3) control the sequence of issuance of the certificates and forms; and

(4) ensure that the certificates and forms are issued in accordance with department rules.

Sec. 548.253. INFORMATION TO BE RECORDED ON ISSUANCE OF electronic inspection authorization, passing vehicle inspection report, INSPECTION CERTIFICATE AND VERIFICATION FORM. An inspection station or inspector, on issuing an electronic inspection authorization, passing vehicle inspection report, inspection certificate and verification form, shall:

(1) make a record and report as prescribed by the department of the inspection and electronic inspection authorization certificate issued; and

(2) include in the electronic inspection authorization inspection certificate and verification form the information required by the department for the type of vehicle inspected.

Sec. 548.254. VALIDITY OF electronic inspection authorization INSPECTION CERTIFICATE. An electronic inspection authorization inspection certificate is invalid after the end of the 12th month following the month in which the certificate is issued. An unused inspection certificate representing a previous inspection period may not be issued after the beginning of the next period.

Sec. 548.255. ATTACHMENT OR PRODUCTION OF INSPECTION CERTIFICATE. (a) An inspection certificate shall be attached to or produced for a vehicle in the manner required by department rule.

(b) The department shall:

(1) require that a certificate for a motorcycle be attached to the rear of the motorcycle near the license plate; and

(2) adopt rules with respect to display of an inspection certificate for a moped.

SECTION 28. Subchapter E, Chapter 548, Transportation Code, is amended by deleting Section 548.257 and amending Section 548.258 to read as follows:

Sec. 548.257. LOST, STOLEN, OR DESTROYED CERTIFICATE. (a) If an inspection certificate is lost, stolen, or destroyed during the period during which the certificate is valid, the vehicle must be reinspected and any applicable fee paid before a new certificate is issued, except that the vehicle is not subject to any emissions inspection. The replacement certificate is valid for the remaining period of validity of the original certificate.

(b) The department by rule shall specify the method for establishing that:

(1) the certificate has been lost, stolen, or destroyed; and

(2) the reinspection is within the period of validity of the lost, stolen, or destroyed certificate.

(c) As part of its rules under Subsection (b), the department shall adopt measures to ensure that the reinspection procedure provided by this section is not used fraudulently to avoid any required inspection.

Sec. 548.258. USE OF TEXASONLINE AND VEHICLE INSPECTION DATABASE. (a) In this section, "TexasOnline" has the meaning assigned by Section 2054.003, Government Code.

(b) The department shall may adopt rules to require an inspection station to use TexasOnline or the Vehicle Inspection Database to:

(1) issue an electronic inspection authorization purchase inspection certificates; and or

(2) send to the department a record, report, or other information required by the department.

(c) The department shall adopt rules to allow an inspection station to use TexasOnline to renew an annual vehicle registration of a motor vehicle.

(d) An inspection station may charge a convenience fee not to exceed $15 for a registration renewal conducted pursuant to subsection (c).

SECTION 29. Subchapter F, Chapter 548, Transportation Code, is amended by amending Sections 548.301 through 548.304 to read as follows

Sec. 548.301. DEPARTMENT COMMISSION TO ESTABLISH PROGRAM. (a) The department 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 department 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 department 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 department 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.

(c) A program established under this section shall Subsection (b) or (b-1) may include registration and reregistration-based enforcement.

(d) A vehicle emissions inspection under this section may be performed by the same facility that performs a safety inspection if the facility is authorized and certified by the department to perform the vehicle emissions inspection and certified by the department to perform the safety inspection.

Sec. 548.3011. EMISSIONS TEST ON RESALE. (a) This section applies only to a vehicle:

(1) the most recent certificate of title for which or registration of which was issued in a county without a motor vehicle emissions inspection and maintenance program; or and

(2) the ownership of which has changed and which has been the subject of a retail, private sale or gift sale as defined by Section 2301.002, Occupations Code, and will primarily be operated in a county with a motor vehicle emissions inspection and maintenance program.

(b) Notwithstanding Subsection (a), this section does not apply to a vehicle that is a 2 year old 1996 or newer model that has less than 50,000 miles.

(c) A vehicle subject to this section is not eligible for a title receipt under Section 501.024, a certificate of title under Section 501.027, or registration under Chapter 502 in a county with a motor vehicle emissions inspection and maintenance program unless proof is presented with the application for certificate of title, or registration, as appropriate, that the vehicle, not earlier than the 90th day before the date on which the new owner's application for certificate of title, or registration is filed with the county clerk or county assessor-collector, as appropriate, has passed an approved vehicle emissions test in the county in which it is to be titled or registered.

(d) The proof required by Subsection (c) may be in the form of an electronic inspection authorization, a valid Vehicle Inspection Report (VIR) or other proof of program compliance as authorized by the department.

Sec. 548.302. DEPARTMENT OF MOTOR VEHICLES COMMISSION TO ADOPT STANDARDS AND REQUIREMENTS. The department of motor vehicles 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 electronic inspection authorization 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 of motor vehicles.

Sec. 548.303. PROGRAM ADMINISTRATION. The department of motor vehicles commission shall administer the motor vehicle emissions inspection and maintenance program under this subchapter.

Sec. 548.304. STATIONS LICENSED TO CONDUCT EMISSIONS INSPECTIONS. (a) The department may authorize and certify inspection stations as necessary to implement the emissions-related inspection requirements of the motor vehicle emissions inspection and maintenance program established under this subchapter if the station meets the department's certification requirements.

(b) The department shall provide inspection certificates for distribution and issuance at inspection stations certified by the department.

SECTION 30. Section 548.306 (h), Transportation Code, is amended to read as follows:(h) The Texas Department of Motor Vehicles shall 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.

SECTION 31. Section 548.307, Transportation Code, is amended to read as follows:

Sec. 548.307. ALTERNATIVE TESTING METHODOLOGY FOR CERTAIN COUNTIES. The department commission by rule may establish procedures for testing and enforcing vehicle emissions standards by use of alternative testing methodology that meets or exceeds United States Environmental Protection Agency requirements in a county participating in an early action compact under Subchapter H, Chapter 382, Health and Safety Code.

SECTION 32. Subchapter G, Chapter 548, Transportation Code, is amended by amending Section 548.401 to read as follows

Sec. 548.401. CERTIFICATION GENERALLY. A person may perform an inspection or issue an electronic inspection authorization inspection certificate only if certified to do so by the department under rules adopted by the department.

SECTION 33. Section 548.405 (a), Transportation Code, is amended to read as follows: (a) The department may deny a person's application for a certificate, revoke or suspend the certificate of a person, inspection station, or inspector, place on probation a person who holds a suspended certificate, or reprimand a person who holds a certificate if:

(1) the station or inspector conducts an inspection, fails to conduct an inspection, or issues an electronic inspection authorization a certificate:

(A) in violation of this chapter or a rule adopted under this chapter; or

(B) without complying with the requirements of this chapter or a rule adopted under this chapter;

(2) the person, station, or inspector commits an offense under this chapter or violates this chapter or a rule adopted under this chapter;

(3) the applicant or certificate holder does not meet the standards for certification under this chapter or a rule adopted under this chapter;

(4) the station or inspector does not maintain the qualifications for certification or does not comply with a certification requirement under Subchapter G;

(5) the certificate holder or the certificate holder's agent, employee, or representative commits an act or omission that would cause denial, revocation, or suspension of a certificate to an individual applicant or certificate holder;

(6) the station or inspector does not pay a fee required by Subchapter H; or

(7) the inspector or owner of an inspection station is convicted of a:

(A) felony or Class A or Class B misdemeanor;

(B) similar crime under the jurisdiction of another state or the federal government that is punishable to the same extent as a felony or a Class A or Class B misdemeanor in this state; or

(C) crime under the jurisdiction of another state or the federal government that would be a felony or a Class A or Class B misdemeanor if the crime were committed in this state.

SECTION 34. Section 548.407 (d), Transportation Code, is amended to read as follows: (d) The department may provide that a revocation or suspension takes effect on receipt of notice under Subsection (b) if the department finds that the action is necessary to prevent or remedy a threat to public health, safety, or welfare. Violations that present a threat to public health, safety, or welfare include:

(1) issuing an electronic inspection authorization inspection certificate with knowledge that the issuance is in violation of this chapter or rules adopted under this chapter;

(2) falsely or fraudulently representing to the owner or operator of a vehicle that equipment inspected or required to be inspected must be repaired, adjusted, or replaced for the vehicle to pass an inspection;

(3) issuing an electronic inspection authorization inspection certificate:

(A) without authorization to issue the electronic inspection authorization certificate; or

(B) without inspecting the vehicle;

(4) issuing an electronic inspection authorization inspection certificate for a vehicle with knowledge that the vehicle has not been repaired, adjusted, or corrected after an inspection has shown a repair, adjustment, or correction to be necessary;

(5) knowingly issuing an electronic inspection authorization inspection certificate:

(A) for a vehicle without conducting an inspection of each item required to be inspected; or

(B) for a vehicle that is missing an item required to be inspected or that has an item required to be inspected that is not in compliance with state law or department rules;

(6) refusing to allow a vehicle's owner to have a qualified person of the owner's choice make a required repair, adjustment, or correction;

(7) charging for an inspection an amount greater than the authorized fee;

(8) a violation of Subchapter F;

(9) a violation of Section 548.603; or

(10) a conviction of a felony or a Class A or B misdemeanor that directly relates to or affects the duties or responsibilities of a vehicle inspection station or inspector or a conviction of a similar crime under the jurisdiction of another state or the federal government.

SECTION 35. Subchapter H, Chapter 548, Transportation Code, is amended by amending Sections 548.501 through 548.505 to read as follows:

Sec. 548.501. INSPECTION FEES GENERALLY. (a) Except as provided by Sections 548.503 and 548.504, the fee for inspection of a motor vehicle other than a moped is $12.50. The fee for inspection of a moped is $5.75. The fee for a verification form issued as required by Section 548.256 is $1.

(b) The registered vehicle owner at the time of annual vehicle registration An inspection station shall pay to the department $5.50 of each a fee determined by the department for an inspection. The department may require the station to make an advance payment of $5.50 for each inspection certificate provided to the station. If advance payment is made:

(1) no further payment may be required on issuance of a certificate;

(2) the inspection station may waive the fee due from the owner of an inspected vehicle who is issued a certificate to which the advance payment applies;

(3) the department shall refund to the inspection station $5.50 for each unissued certificate that the station returns to the department in accordance with department rules; and

(4) the conservation commission shall pay to the department $2 for each unissued certificate that the station returns to the department.

Sec. 548.502. INSPECTION BY POLITICAL SUBDIVISION OR STATE AGENCY. A political subdivision or state agency for which the department certifies an inspection station under Section 548.004:

(1) shall pay to the department an advance payment of an amount determined by the department $5.50 for each electronic inspection authorization inspection certificate provided to it; and

(2) may not be required to pay the compulsory inspection fee.

Sec. 548.503. INITIAL TWO-YEAR INSPECTION OF PASSENGER CAR OR LIGHT TRUCK. (a) The fee for inspection of a passenger car or light truck under Section 548.102 shall not exceed $21.75. be set by the department by rule on or before September 1 of each year. A fee set by the department under this subsection must be based on the costs of producing certificates, providing inspections, and administering the program, but may not be less than $21.75.

(b) The department shall require the vehicle owner upon the initial registration of the vehicle to pay a fee determined by the department. an inspection station to make an advance payment of $14.75 for a certificate to be issued under this section. Additional payment may not be required of the station for the certificate. The inspection station may waive the fee due from the owner of the vehicle inspected. A refund for an unissued certificate shall be made in the same manner as provided for other certificate refunds.

Sec. 548.504. INSPECTION OF COMMERCIAL MOTOR VEHICLE. (a) The fee for inspection of a commercial motor vehicle under the program established under Section 548.201 is $50.

(b) The vehicle owner upon the annual registration of the vehicle shall pay a fee determined by the department. The inspection station shall pay to the department $10 of each fee for inspection of a commercial motor vehicle. The department may require the station to make an advance payment of $10 for a certificate to be issued under this section. If advance payment is made:

(1) no additional payment may be required of the station for the certificate; and

(2) a refund for an unissued certificate shall be made in the same manner as provided for other certificate refunds.

Sec. 548.505. EMISSIONS-RELATED INSPECTION FEE. (a) The department by rule shall establish may impose an inspection fee charged by the inspection station and a fee collected at the time of vehicle registration for a vehicle inspected under Section 548.301(a) in addition to the fee provided by Section 548.501, 548.502, 548.503, or 548.504. A fee imposed under this subsection must be based on the costs of:

(1) producing electronic inspection authorizations certificates;

(2) providing inspections; and

(3) administering the program.

(b) The department may provide a maximum fee for an inspection under this subchapter. The department may not set a minimum fee for an inspection under this subchapter.

SECTION 36. Subchapter I, Chapter 548, Transportation Code, is amended by amending Sections 548.601 (a) to read as follows:

(a) A person, including an inspector or an inspection station, commits an offense if the person:

(1) issues an electronic inspection authorization inspection certificate with knowledge that the issuance is in violation of this chapter or rules adopted under this chapter;

(2) falsely or fraudulently represents to the owner or operator of a vehicle that equipment inspected or required to be inspected must be repaired, adjusted, or replaced for the vehicle to pass an inspection;

(3) misrepresents:

(A) material information in an application in violation of Section 548.402 or 548.403; or

(B) information filed with the department under this chapter or as required by department rule;

(4) issues an electronic inspection authorization inspection certificate:

(A) without authorization to issue the electronic inspection authorization certificate; or

(B) without inspecting the vehicle;

(5) issues an electronic inspection authorization inspection certificate for a vehicle with knowledge that the vehicle has not been repaired, adjusted, or corrected after an inspection has shown a repair, adjustment, or correction to be necessary;

(6) knowingly issues an electronic inspection authorization inspection certificate:

(A) for a vehicle without conducting an inspection of each item required to be inspected; or

(B) for a vehicle that is missing an item required to be inspected or that has an item required to be inspected that is not in compliance with state law or department rules;

(7) refuses to allow a vehicle's owner to have a qualified person of the owner's choice make a required repair, adjustment, or correction;

(8) charges for an inspection an amount greater than the authorized fee; or

(9) performs an act prohibited by or fails to perform an act required by this chapter or a rule adopted under this chapter.

SECTION 37. Section 548.602, Transportation Code, is deleted.

Sec. 548.602. FAILURE TO DISPLAY INSPECTION CERTIFICATE. (a) After the fifth day after the date of expiration of the period designated for inspection, a person may not operate:

(1) a motor vehicle registered in this state unless a current and appropriate inspection certificate is displayed on the vehicle; or

(2) a commercial motor vehicle registered in this state unless it is equipped as required by federal motor carrier safety regulations and displays an inspection certificate issued under the program established under Section 548.201.

(b) A peace officer who exhibits a badge or other sign of authority may stop a vehicle not displaying an inspection certificate on the windshield and require the owner or operator to produce an inspection certificate for the vehicle.

(c) It is a defense to prosecution under Subsection (a)(1) that an inspection certificate for the vehicle is in effect at the time of the arrest.

SECTION 38. Section 548.603, Transportation Code, is amended to read as follows:

Sec. 548.603. FICTITIOUS OR COUNTERFEIT VEHICLE INSPECTION REPORT (VIP) INSPECTION CERTIFICATE OR INSURANCE DOCUMENT. (a) A person commits an offense if the person:

(1) presents, displays or causes or permits to be displayed a vehicle inspection report (vir) an inspection certificate or insurance document knowing that the certificate or document is counterfeit, tampered with, altered, fictitious, issued for another vehicle, issued for a vehicle failing to meet all emissions inspection requirements, or issued in violation of:

(A) this chapter, rules adopted under this chapter, or other law of this state; or

(B) a law of another state, the United States, the United Mexican States, a state of the United Mexican States, Canada, or a province of Canada;

(2) transfers an inspection certificate from a windshield or location to another windshield or location;

(2)(3) with intent to circumvent the emissions inspection requirements seeks an inspection of a vehicle at a station not certified to perform an emissions inspection if the person knows that the vehicle is required to be inspected under Section 548.301;

(3)(4) knowingly does not comply with an emissions inspection requirement for a vehicle; or

(5) displays on a vehicle an inspection certificate that was obtained knowing that the vehicle does not meet all emissions inspection requirements for the vehicle.

(b) A person commits an offense if the person:

(1) makes or possesses, with the intent to sell, circulate, or pass, a counterfeit vehicle inspection report (vir) inspection certificate or insurance document; or

(2) possesses any part of a stamp, dye, plate, negative, machine, or other device that is used or designated for use in making a counterfeit vehicle inspection report (vir) inspection certificate or insurance document.

(c) The owner of a vehicle commits an offense if the owner knowingly allows the vehicle to be registered or operated while the vehicle displays an inspection certificate in violation of Subsection (a).

(d) An offense under Subsection (a) or (c) is a Class B misdemeanor. An offense under Subsection (b) is a third degree felony unless the person acts with the intent to defraud or harm another person, in which event the offense is a second degree felony.

(e) In this section:

(1) "Counterfeit" means an imitation of a document that is printed, engraved, copied, photographed, forged, or manufactured by a person not authorized to take that action under:

(A) this chapter, rules adopted under this chapter, or other law of this state; or

(B) a law of another state, the United States, the United Mexican States, a state of the United Mexican States, Canada, or a province of Canada.

(2) "Vehicle Inspection Report (vir)""Inspection certificate" means a document that is printed, manufactured, or made by the department or an authorized agent of the department for issuance after a vehicle passes an inspection performed under this chapter.

(2)(3) "Insurance document" means a standard proof of motor vehicle insurance coverage that is:

(A) in a form prescribed by the Texas Department of Insurance or by a similarly authorized board, agency, or authority of another state; and

(B) issued by an insurer or insurer's agent who is authorized to write motor vehicle insurance coverage.

(3)(4) "Person" includes an inspection station or inspector.

Text of subsec. (f) as added by Acts 1997, 75th Leg., ch. 851,

Sec. 2

(f) Notwithstanding Subsection (c), an offense under Subsection (a)(1) that involves a fictitious vehicle inspection report (vir) inspection certificate is a Class B misdemeanor.

Text of subsec. (f) as added by Acts 1997, 75th Leg., ch. 1069, Sec.

16

(f) A motor vehicle on which a vehicle emissions inspection certificate is displayed in violation of Subsection (a) and that is operated or parked on a public roadway may be impounded by a peace officer or other authorized employee of this state or a political subdivision of this state in which the vehicle is operated or parked.

SECTION 39. Section 548.603, Transportation Code is deleted.

Sec. 548.605. DISMISSAL OF CHARGE; ADMINISTRATIVE FEE. (a) In this section, "working day" means any day other than a Saturday, a Sunday, or a holiday on which county offices are closed.

(b) The court shall:

(1) dismiss a charge of driving with an expired inspection certificate if:

(A) the defendant remedies the defect within 20 working days or before the defendant's first court appearance date, whichever is later; and

(B) the inspection certificate has not been expired for more than 60 days; and

(2) assess an administrative fee not to exceed $20 when the charge of driving with an expired inspection certificate has been remedied.

(c) Notwithstanding Subsection (b)(1)(B), the court may dismiss a charge of driving with an expired inspection certificate that has been expired for more than 60 days.

SECTION 40. This Act takes effect Sept. 1, 2011