By: Williams S.B. No. 1035

(In the Senate - Filed March 1, 2011; March 16, 2011, read first time and referred to Committee on Transportation and Homeland Security; April 20, 2011, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; April 20, 2011, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1035 By: Williams

A BILL TO BE ENTITLED

AN ACT

relating to motor vehicle title services; providing penalties.

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

SECTION 1. Effective January 1, 2012, the heading to Subchapter E, Chapter 520, Transportation Code, is amended to read as follows:

SUBCHAPTER E. COUNTY PERMITTING OF MOTOR VEHICLE TITLE SERVICES

SECTION 2. Effective January 1, 2012, Subdivisions (2), (3), (4), and (6), Section 520.051, Transportation Code, are amended to read as follows:

(2) "Motor vehicle title service" means any person that for compensation directly or indirectly assists other persons in obtaining motor vehicle [title] documents by submitting, transmitting, or sending applications for motor vehicle [title] documents to the appropriate government agencies, including county tax assessor-collectors.

(3) "Motor vehicle [Title] documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683 of this code or Chapter 70, Property Code.

(4) "Title service permit [license] holder" means a person who holds a motor vehicle title service permit [license] or a title service runner's permit [license].

(6) "Title service runner" means any person employed by a [licensed] motor vehicle title service to submit or present motor vehicle [title] documents to the county tax assessor-collector.

SECTION 3. Effective January 1, 2012, Subchapter E, Chapter 520, Transportation Code, is amended by adding Section 520.0521 to read as follows:

Sec. 520.0521. PURPOSE; LIBERAL CONSTRUCTION. (a) The purpose of this subchapter is to protect the integrity of the submittal of transactional motor vehicle documents by nongovernmental entities through:

(1) the permitting and regulation of titling services and title service runners; and

(2) the enforcement of this chapter to prevent crime, fraud, unfair practices, and discrimination.

(b) This subchapter shall be liberally construed to give effect to the purpose of this subchapter.

SECTION 4. Effective January 1, 2012, Sections 520.052 through 520.060, Transportation Code, are amended to read as follows:

Sec. 520.052. APPLICABILITY. This subchapter applies to any motor vehicle title service operating in a county[:

[(1)] that requires a permit under Section 520.053 [has a population of more than 500,000; or

[(2) in which the commissioners court by order has adopted this subchapter].

Sec. 520.053. PERMIT [LICENSE] REQUIRED. A county may require a motor vehicle title service or a title service runner to obtain a permit from the county in which the titles are required to be filed [person may not act as a motor vehicle title service or act as an agent for that business unless that person holds a license issued under this subchapter].

Sec. 520.054. GENERAL PERMIT [LICENSE] APPLICATION REQUIREMENTS. (a) In a county that requires [An applicant for] a motor vehicle title service permit or a title service runner permit, an applicant [license] must apply on a form prescribed by the county tax assessor-collector. The application form must be signed by the applicant and accompanied by the application fee, which may not exceed the amount of a fee established under Section 520.077.

(b) An application must include:

(1) the applicant's name, business address, and business telephone number;

(2) the name under which the applicant will do business;

(3) the physical address of each office from which the applicant will conduct business;

(4) a statement indicating whether the applicant has previously applied for a permit [license] under this subchapter, the result of the previous application, and whether the applicant has ever been the holder of a permit [license] under this subchapter that was revoked or suspended;

(5) information from the applicant as required by the county tax assessor-collector to establish the business reputation and character of the applicant;

(6) the applicant's federal tax identification number;

(7) the applicant's state sales tax number; [and]

(8) any other information required by rules adopted under this subchapter;

(9) an affirmation of the truth of the information contained in the application signed and sworn to before an officer authorized to administer oaths; and

(10) if for a motor vehicle title service permit, an affirmation that all acts of a motor vehicle title service's employees, agents, contractors, or title service runners are acts of the motor vehicle title service for the purposes of this subchapter.

(c) A permit fee charged under Subsection (a) must be deposited in the general fund for the county tax assessor-collector and sheriff to use for the administration and enforcement of the county's motor vehicle title service and title service runner permitting program.

Sec. 520.055. APPLICATION REQUIREMENTS: CORPORATION. In addition to the information required in Section 520.054, an applicant for a motor vehicle title service permit [license] that intends to engage in business as a corporation shall submit the following information:

(1) the state of incorporation;

(2) the name, address, date of birth, and social security number of each of the principal owners and directors of the corporation;

(3) information about each officer and director as required by the county tax assessor-collector to establish the business reputation and character of the applicant; and

(4) a statement indicating whether an employee, officer, or director has been refused a motor vehicle title service permit [license] or a title service runner's permit [license] or has been the holder of a permit [license] that was revoked or suspended.

Sec. 520.056. APPLICATION REQUIREMENTS: PARTNERSHIP. In addition to the information required in Section 520.054, a motor vehicle title service permit [license] applicant that intends to engage in business as a partnership shall submit an application that includes the following information:

(1) the name, address, date of birth, and social security number of each partner;

(2) information about each partner as required by the county tax assessor-collector to establish the business reputation and character of the applicant; and

(3) a statement indicating whether a partner or employee has been refused a motor vehicle title service permit [license] or a title service runner's permit [license] or has been the holder of a permit [license] that was revoked or suspended.

Sec. 520.057. RECORDS. [(a)] A holder of a motor vehicle title service permit [license] shall maintain records as required by Section 520.080 [this section on a form prescribed and made available by the county tax assessor-collector for each transaction in which the license holder receives compensation. The records shall include:

[(1) the date of the transaction;

[(2) the name, age, address, sex, driver's license number, and a legible photocopy of the driver's license for each customer; and

[(3) the license plate number, vehicle identification number, and a legible photocopy of proof of financial responsibility for the motor vehicle involved.

[(b) A motor vehicle title service shall keep:

[(1) two copies of all records required under this section for at least two years after the date of the transaction;

[(2) legible photocopies of any documents submitted by a customer; and

[(3) legible photocopies of any documents submitted to the county tax assessor-collector].

Sec. 520.058. INSPECTION OF RECORDS. A motor vehicle title service permit [license] holder or any of its employees shall allow an inspection of records required under Section 520.057 by the county tax assessor-collector or a peace officer on the premises of the motor vehicle title service at any reasonable time to verify, check, or audit the records.

Sec. 520.059. DENIAL, SUSPENSION, OR REVOCATION OF PERMIT [LICENSE]. (a) The county tax assessor-collector may deny, suspend, revoke, or reinstate a permit [license] issued under this subchapter.

(b) The county tax assessor-collector shall adopt rules that establish grounds for the denial, suspension, revocation, or reinstatement of a permit [license] and rules that establish procedures for disciplinary action. Procedures issued under this subchapter are subject to Chapter 2001, Government Code.

(c) A person whose permit [license] is revoked may not apply for a new permit [license] before the first anniversary of the date of the revocation.

(d) A permit [license] may not be issued under a fictitious name that is similar to or may be confused with the name of a governmental entity or that is deceptive or misleading to the public.

(e) The county tax assessor-collector must provide written notice of denial, suspension, or revocation of a permit.

(f) Notwithstanding any other provision of law, the county has all powers necessary, incidental, or convenient 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 subchapter;

(7) specify and govern appearance, practice, and procedures before the county;

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

(9) enter into settlement agreements;

(10) impose a sanction for contempt;

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

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

(13) impose a civil penalty;

(14) enter an order requiring a person to:

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

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

(C) refrain from performing an act; and

(15) enforce a county order.

Sec. 520.060. PERMIT [LICENSE] RENEWAL. (a) A permit [license] issued under this subchapter expires on the first anniversary of the date of issuance and may be renewed annually on or before the expiration date on payment of the required renewal fee.

(b) A person who is otherwise eligible to renew a permit [license] may renew an unexpired permit [license] by paying to the county tax assessor-collector before the expiration date of the permit [license] the required renewal fee. A person whose permit [license] has expired may not engage in activities that require a permit [license] until the permit [license] has been renewed under this section.

(c) If a person's permit [license] has been expired for 90 days or less, the person may renew the permit [license] by paying to the county tax assessor-collector 1-1/2 times the required renewal fee.

(d) If a person's permit [license] has been expired for longer than 90 days but less than one year, the person may renew the permit [license] by paying to the county tax assessor-collector two times the required renewal fee.

(e) If a person's permit [license] has been expired for one year or longer, the person may not renew the permit [license]. The person may obtain a new permit [license] by complying with the requirements and procedures for obtaining an original permit [license].

(f) Notwithstanding Subsection (e), if a person had obtained a permit [was licensed] in this state, moved to another state, and has been doing business in the other state for the two years preceding application, the person may renew an expired permit [license]. The person must pay to the county tax assessor-collector a fee that is equal to two times the required renewal fee for the permit [license].

(g) Before the 30th day preceding the date on which a person's permit [license] expires, the county tax assessor-collector shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the county tax assessor-collector.

SECTION 5. Effective January 1, 2012, Section 520.061, Transportation Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows:

(b) Except as provided by Subsection (c) or the Penal Code, an [An] offense under this section is a Class A misdemeanor.

(c) An offense under this section is a state jail felony if it is based on:

(1) a violation of Section 520.053; or

(2) the falsification of information required under Section 520.054, 520.055, or 520.056.

SECTION 6. Effective January 1, 2012, Subchapter E, Chapter 520, Transportation Code, is amended by adding Section 520.0611 to read as follows:

Sec. 520.0611. CIVIL PENALTY. (a) A person who violates this subchapter is subject to a civil penalty of not more than $10,000 for each violation.

(b) Each day a violation occurs constitutes a separate violation.

(c) The county by rule shall establish factors to be considered in determining the amount of the civil penalty assessed by the county.

(d) Notwithstanding any other law to the contrary, a civil penalty recovered under this subchapter shall be deposited to the credit of the county's general fund or other fund as designated by the county.

SECTION 7. Effective January 1, 2012, Subsection (a), Section 520.062, Transportation Code, is amended to read as follows:

(a) The county attorney or a [A] district attorney of the county in which the motor vehicle title service is operating [located] may bring an action to enjoin the operation of a motor vehicle title service or a title service runner if the motor vehicle title service permit [license] holder or a runner of the motor vehicle title service while in the scope of the runner's employment is found to have committed one or more violations of or convicted of more than one offense under this subchapter.

SECTION 8. Effective January 1, 2012, Section 520.063, Transportation Code, is amended to read as follows:

Sec. 520.063. EXEMPTIONS. The following persons and their agents are exempt from the permitting [licensing] and other requirements established by this subchapter:

(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Chapter 503;

(2) a vehicle lessor holding a license issued by the department [Motor Vehicle Board] under Chapter 2301, Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under Section 2301.254(a) of that code; and

(3) a vehicle lease facilitator holding a license issued by the department [Motor Vehicle Board] under Chapter 2301, Occupations Code.

SECTION 9. Effective January 1, 2012, Chapter 520, Transportation Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. STATE LICENSING OF MOTOR VEHICLE TITLE SERVICES

Sec. 520.071. DEFINITIONS. In this subchapter:

(1) "Board" means the Board of the Texas Department of Motor Vehicles.

(2) "Motor vehicle" has the meaning assigned by Section 501.002.

(3) "Motor vehicle documents" means motor vehicle title applications, motor vehicle registration renewal applications, motor vehicle mechanic's lien title applications, motor vehicle storage lien title applications, motor vehicle temporary registration permits, motor vehicle title application transfers occasioned by the death of the title holder, or notifications under Chapter 683 of this code or Chapter 70, Property Code.

(4) "Motor vehicle title service" means any person that for compensation directly or indirectly assists other persons in obtaining motor vehicle documents by submitting, transmitting, or sending applications for motor vehicle documents to the appropriate government agencies, including county tax assessor-collectors.

(5) "Title service license holder" means a person who holds a motor vehicle title service license or a title service runner's license.

(6) "Title service record" means the written record for each transaction in which a motor vehicle title service receives compensation.

(7) "Title service runner" means any person employed by a motor vehicle title service to submit or present motor vehicle documents to the county tax assessor-collector.

Sec. 520.072. APPLICABILITY. This subchapter applies to any motor vehicle title service operating in this state.

Sec. 520.073. PURPOSE; LIBERAL CONSTRUCTION. (a) The purpose of this subchapter is to protect the integrity of the submittal of transactional motor vehicle documents by nongovernmental entities through:

(1) the licensing and regulation of titling services and title service runners; and

(2) the enforcement of this chapter to prevent crime, fraud, unfair practices, and discrimination.

(b) This subchapter shall be liberally construed to give effect to the purpose of this subchapter.

Sec. 520.074. LICENSE REQUIRED. A person may not act as a motor vehicle title service or act as a title service runner unless that person holds:

(1) a permit issued by the county, if required by the county where the titles are required to be filed; and

(2) a license issued by the department.

Sec. 520.075. STATE LICENSE APPLICATION REQUIREMENTS. An applicant for a motor vehicle title service license or a title service runner license must apply on a form prescribed by the department. The application form must be signed by the applicant and accompanied by the application fee.

Sec. 520.076. ESTABLISHED AND PERMANENT PLACE OF BUSINESS. (a) An applicant for a motor vehicle title service license must demonstrate that the location for which the applicant requests the license is an established and permanent place of business. A location is considered to be an established and permanent place of business if the applicant:

(1) owns the real property on which the business is situated or has a written lease for the property that has a term of not less than the term of the license;

(2) maintains on the location:

(A) a permanent furnished office that is equipped for titling services as specified in department rules; and

(B) a conspicuous sign with letters at least six inches high showing the name of the applicant's business.

(b) The applicant must demonstrate that:

(1) the applicant intends to remain regularly and actively engaged in the business specified in the application for a time equal to at least the term of the license at the location specified in the application; and

(2) the applicant or a bona fide employee of the applicant will be:

(A) at the location to transact title services; and

(B) available to the public or the department at that location during reasonable and lawful business hours.

Sec. 520.077. LICENSE FEES. (a) The department by rule shall adopt fees for an original license and a renewal license for motor vehicle title services and for an original license and a renewal license for title service runners.

(b) The fee for an original license for a motor vehicle title service or for a title service runner may not exceed $500.

(c) The fee for a renewal license for a motor vehicle title service or for a title service runner may not exceed $200 annually.

(d) The fee for an amendment to a license issued under this subchapter may not exceed $25.

(e) The fee for a duplicate license issued under this subchapter may not exceed $50.

(f) An additional fee may be charged for late renewal of not more than 1-1/2 times the renewal fee.

(g) A fee collected under this section shall be deposited to the credit of the state highway fund. Section 403.095, Government Code, does not apply to money received by the department and deposited to the credit of the state highway fund under this subchapter.

(h) The department may refund from funds appropriated to the department for that purpose a fee collected under this subchapter that is not due or that exceeds the amount due.

Sec. 520.078. SURETY BOND. (a) The department may not issue or renew a motor vehicle title service license unless the applicant provides to the department satisfactory proof that the applicant has purchased a properly executed surety bond in the amount of $25,000 with a good and sufficient surety authorized by the Texas Department of Insurance in effect for at least the term of the license.

(b) The surety bond must be:

(1) in a form approved by the department; and

(2) conditioned on the submission by the applicant of money and accurate motor vehicle documents on behalf of another person that are required to be submitted to government agencies, including county tax assessor-collectors, in order to obtain motor vehicle title or registration.

(c) A person may recover against a surety bond if the person obtains a judgment assessing damages and reasonable attorney's fees based on an act or omission of the bondholder:

(1) on which the bond is conditioned; and

(2) that occurred during the term for which the motor vehicle title service license was valid.

(d) The liability imposed on a surety is limited to the amount:

(1) required to be submitted to the appropriate government agencies, including county tax assessor-collectors;

(2) received by the applicant for performing as a motor vehicle title service;

(3) incurred in engaging the applicant to assist in obtaining motor vehicle documents; and

(4) of attorney's fees awarded in the judgment.

(e) The liability of a surety may not exceed the face value of the surety bond. A surety is not liable for successive claims in excess of the bond amount regardless of the number of claims made against the bond or the number of years the bond remains in force.

Sec. 520.079. LICENSE RENEWAL. (a) The board shall set the term of a license issued under this subchapter by rule.

(b) If a person's license has been expired for 90 days or less, the person may renew the license by paying a late fee in addition to the renewal fee as described in Section 520.077(f).

Sec. 520.080. RECORDS. (a) A holder of a motor vehicle title service license shall:

(1) maintain records as required by department rule, including any forms prescribed by the department for each transaction presented to the county tax office or appropriate government office under this subchapter; and

(2) provide a copy of the record to the county tax assessor-collector.

(b) The records maintained under this section must include:

(1) the date of the transaction;

(2) the name, age, address, sex, and driver's license number of, and a legible photocopy of the driver's license for, each customer;

(3) the license plate number and vehicle identification number of, and, if applicable, a legible photocopy of proof of financial responsibility for, the motor vehicle involved; and

(4) any other information required to be maintained by department rule.

(c) Records required by this section must be maintained for four years from the date of the transaction.

(d) A motor vehicle title service shall keep:

(1) a copy of all records required under this section for at least four years after the date of the transaction;

(2) a legible photocopy of any documents submitted by a customer; and

(3) a legible photocopy of any documents submitted to the county tax assessor-collector.

Sec. 520.081. INSPECTION OF RECORDS. A motor vehicle title service license holder or any of its employees shall allow during business hours at the license holder's business location an inspection of records required under Section 520.080 by the department, the county tax assessor-collector, or a peace officer.

Sec. 520.082. DENIAL SUSPENSION OR REVOCATION OF LICENSE. (a) The department may deny, suspend, revoke, or reinstate a license issued under this subchapter.

(b) The department:

(1) shall adopt rules that establish grounds for the denial, suspension, revocation, or reinstatement of a license and rules that establish procedures for disciplinary action; and

(2) may adopt rules that allow for the incorporation of findings made by a county that has denied, suspended, revoked, or reinstated a permit issued under Subchapter E.

(c) Procedures established under this subchapter are subject to Chapter 2001, Government Code.

(d) The department must provide written notice of denial, suspension, or revocation of a license.

(e) Notwithstanding any other provision of law, the board has all powers necessary, incidental, or convenient 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, and other documents;

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

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

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

(9) enter into settlement agreements;

(10) impose a sanction for contempt;

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

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

(13) impose a civil penalty;

(14) enter an order requiring a person to:

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

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

(C) refrain from performing an act; and

(15) enforce a board order.

Sec. 520.083. CRIMINAL PENALTY. (a) A person commits an offense if the person violates this subchapter or a rule adopted by the department or county tax assessor-collector under this subchapter.

(b) Except as provided by Subsection (c) or the Penal Code, an offense under this section is a Class A misdemeanor.

(c) An offense under this section is a state jail felony if it is based on:

(1) a violation of Section 520.074; or

(2) the falsification of information required under Section 520.075 or 520.078.

Sec. 520.084. CIVIL PENALTY. (a) A person who violates this subchapter is subject to a civil penalty of not more than $10,000 for each violation.

(b) Each day a violation occurs constitutes a separate violation.

(c) The department by rule shall establish factors to be considered in determining the amount of the civil penalty assessed by the department.

(d) Notwithstanding any other law to the contrary, a civil penalty recovered under this subchapter shall be deposited in the state treasury to the credit of the state highway fund.

Sec. 520.085. CEASE AND DESIST ORDER. (a) If it appears to the board that a person is violating this subchapter or a board rule or order, the 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 board by this subchapter;

(2) the order is necessary or convenient to maintaining the status quo between two or more adverse parties before the board;

(3) a party before the board is entitled to relief demanded of the 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 board, in violation of the rights of a party before the board; and

(B) that would tend to render the board's order in the case ineffectual; or

(5) substantial injury to the rights of a person subject to the board's jurisdiction is threatened regardless of any remedy available at law.

(c) A proceeding under this section is governed by:

(1) this subchapter and the 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 board. An appeal of an interlocutory cease and desist order must be made to the board before seeking judicial review as provided by this subchapter.

(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 board under this subchapter. An appeal of a permanent cease and desist order is made in the same manner as an appeal of a final order under this subchapter.

Sec. 520.086. INJUNCTION. (a) The attorney general or a district attorney of the county in which the motor vehicle title service is operating may bring an action to enjoin the operation of a motor vehicle title service or a title service runner if the motor vehicle title service license holder or a runner of the motor vehicle title service while in the scope of the runner's employment is found to have committed one or more violations of or convicted of more than one offense under this subchapter.

(b) If the court grants relief under Subsection (a), the court may:

(1) enjoin the person from maintaining or participating in the business of a motor vehicle title service for a period of time as determined by the court; or

(2) declare the place where the person's business is located to be closed for any use relating to the business of the motor vehicle title service for as long as the person is enjoined from participating in that business.

Sec. 520.087. COMPLAINT INVESTIGATION AND DISPOSITION. (a) If the department has reason to believe, through receipt of a complaint or otherwise, that a violation of this subchapter or a rule, order, or decision of the department has occurred or is likely to occur, the department may conduct an investigation unless it determines that the complaint is frivolous or for the purpose of harassment.

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

Sec. 520.088. EXEMPTIONS. The following persons and their agents are exempt from the licensing and other requirements established by this subchapter:

(1) a franchised motor vehicle dealer or independent motor vehicle dealer who holds a general distinguishing number issued by the department under Chapter 503;

(2) a vehicle lessor holding a license issued by the department under Chapter 2301, Occupations Code, or a trust or other entity that is specifically not required to obtain a lessor license under Section 2301.254(a), Occupations Code; and

(3) a vehicle lease facilitator holding a license issued by the department under Chapter 2301, Occupations Code.

SECTION 10. Effective January 1, 2012, Subsection (c), Section 730.007, Transportation Code, is amended to read as follows:

(c) This section does not:

(1) prohibit the disclosure of a person's photographic image to:

(A) a law enforcement agency, the Texas Department of Motor Vehicles, a county tax assessor-collector, or a criminal justice agency for an official purpose;

(B) an agency of this state investigating an alleged violation of a state or federal law relating to the obtaining, selling, or purchasing of a benefit authorized by Chapter 31 or 33, Human Resources Code; or

(2) prevent a court from compelling by subpoena the production of a person's photographic image.

SECTION 11. Not later than November 1, 2011, the Texas Department of Motor Vehicles shall adopt rules and forms to administer Subchapter F, Chapter 520, Transportation Code, as added by this Act.

SECTION 12. The change in law made by this Act to Section 520.061, Transportation Code, as amended by this Act, applies only to an offense committed on or after January 1, 2012. An offense committed before that date is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before January 1, 2012, if any element of the offense was committed before that date.

SECTION 13. Except as otherwise provided by this Act, this Act takes effect September 1, 2011.

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