By: Huffines, et al.  S.B. No. 1588
         (In the Senate - Filed March 9, 2017; March 21, 2017, read
  first time and referred to Committee on Natural Resources &
  Economic Development; April 27, 2017, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 9,
  Nays 2; April 27, 2017, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1588 By:  Huffines
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the elimination of regular mandatory vehicle safety
  inspections and the imposition of replacement fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 382.0622(a), Health and Safety Code, is
  amended to read as follows:
         (a)  Clean Air Act fees consist of:
               (1)  fees collected by the commission under Sections
  382.062, 382.0621, 382.202, and 382.302 and as otherwise provided
  by law;
               (2)  [$2 from the portion of] each fee collected under
  Section 502.360 [for inspections of vehicles other than mopeds and
  remitted to the state under Sections 548.501 and 548.503],
  Transportation Code; and
               (3)  fees collected that are required under Section 185
  of the federal Clean Air Act (42 U.S.C. Section 7511d).
         SECTION 2.  Section 382.202, Health and Safety Code, is
  amended by amending Subsection (d) and adding Subsection (e-1) to
  read as follows:
         (d)  On adoption of a resolution by the commission and after
  proper notice, the Department of Public Safety of the State of Texas
  shall implement a system that requires, [as a condition of
  obtaining a passing vehicle inspection report 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, Chapter 548, Transportation Code [of
  that chapter], that a motor vehicle registered in this state [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 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-1)  The portion of a fee imposed under Subsection (e) that
  is not authorized to be retained by an inspection station must be
  collected as provided by Section 502.361.
         SECTION 3.  Section 382.203(c), Health and Safety Code, is
  amended to read as follows:
         (c)  The 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 is driven an average of
  fewer than 5,000 miles each year [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 386.251(c), Health and Safety Code, is
  amended to read as follows:
         (c)  The fund consists of:
               (1)  the amount of money deposited to the credit of the
  fund under:
                     (A)  Section 386.056;
                     (B)  Sections 151.0515 and 152.0215, Tax Code; and
                     (C)  Sections 501.138 and[,] 502.358[, and
  548.5055], Transportation Code; and
               (2)  grant money recaptured under Section 386.111(d)
  and Chapter 391.
         SECTION 5.  Section 502.092(c), Transportation Code, is
  amended to read as follows:
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the department in a manner prescribed
  by the department;
               (2)  paying a fee equal to 1/12 the registration fee
  prescribed by this chapter for the vehicle;
               (3)  furnishing satisfactory evidence that the motor
  vehicle is insured under an insurance policy that complies with
  Section 601.072 and that is written by:
                     (A)  an insurance company or surety company
  authorized to write motor vehicle liability insurance in this
  state; or
                     (B)  with the department's approval, a surplus
  lines insurer that meets the requirements of Chapter 981, Insurance
  Code, and rules adopted by the commissioner of insurance under that
  chapter, if the applicant is unable to obtain insurance from an
  insurer described by Paragraph (A); and
               (4)  furnishing evidence that the vehicle has been
  inspected if [as] required under Chapter 548.
         SECTION 6.  Section 502.094(e), Transportation Code, is
  amended to read as follows:
         (e)  A vehicle issued a permit under this section is subject
  to [Subchapters B and F,] Chapter 548, unless the vehicle:
               (1)  is registered in another state of the United
  States, in a province of Canada, or in a state of the United Mexican
  States; or
               (2)  is mobile drilling or servicing equipment used in
  the production of gas, crude petroleum, or oil, including a mobile
  crane or hoisting equipment, mobile lift equipment, forklift, or
  tug.
         SECTION 7.  Section 502.146(d), Transportation Code, is
  amended to read as follows:
         (d)  A vehicle described by Subsection (b) is exempt from the
  inspection requirements of Subchapter [Subchapters B and] F,
  Chapter 548.
         SECTION 8.  Subchapter G, Chapter 502, Transportation Code,
  is amended by adding Sections 502.360 and 502.361 to read as
  follows:
         Sec. 502.360.  INSPECTION PROGRAM REPLACEMENT FEES. (a)  In
  addition to other fees imposed at the time of registration of a
  motor vehicle, at the time of application for registration or
  renewal of registration of a motor vehicle, the applicant shall pay
  an annual fee of:
               (1)  $9.25 for a noncommercial motor vehicle that:
                     (A)  is sold in this state or purchased by a
  commercial fleet buyer described by Section 501.0234(b)(4) for use
  in this state;
                     (B)  has not been previously registered in this or
  another state; and
                     (C)  on the date of sale is of the current model
  year or preceding model year;
               (2)  $5.50 for a noncommercial motor vehicle that is
  not a vehicle described by Subdivision (1); and
               (3)  $20 for a commercial motor vehicle.
         (b)  The department or the county tax assessor-collector, as
  applicable, shall remit the fee collected under Subsection (a) to
  the comptroller at the time and in the manner prescribed by the
  comptroller.
         (c)  The comptroller shall deposit fees received under
  Subsection (a)(1) to the credit of the Texas mobility fund.
         (d)  Out of fees received under Subsection (a)(2), the
  comptroller shall deposit:
               (1)  $1.85 of each fee to the credit of the clean air
  account;
               (2)  15 cents of each fee to the credit of the state
  highway fund to be used only by the Texas Department of
  Transportation for safety initiatives; and
               (3)  the remainder of each fee to the credit of the
  Texas mobility fund.
         (e)  Out of fees received under Subsection (a)(3), the
  comptroller shall deposit:
               (1)  $10 of each fee to the credit of the Texas mobility
  fund; and
               (2)  $10 of each fee to the credit of the Texas
  emissions reduction plan fund.
         Sec. 502.361.  COLLECTION OF EMISSIONS-RELATED INSPECTION
  FEE. The department or a county tax assessor-collector, as
  applicable, that registers a motor vehicle that is subject to an
  emissions-related inspection fee under Section 382.202, Health and
  Safety Code, or Section 548.505 of this code shall collect the fee
  at the time of registration of the motor vehicle.  The department or
  county tax assessor-collector shall remit the fee to the
  comptroller at the time and in the manner prescribed by the
  comptroller.
         SECTION 9.  Section 545.352(b), Transportation Code, is
  amended to read as follows:
         (b)  Unless a special hazard exists that requires a slower
  speed for compliance with Section 545.351(b), the following speeds
  are lawful:
               (1)  30 miles per hour in an urban district on a street
  other than an alley and 15 miles per hour in an alley;
               (2)  except as provided by Subdivision (4), 70 miles
  per hour on a highway numbered by this state or the United States
  outside an urban district, including a farm-to-market or
  ranch-to-market road;
               (3)  except as provided by Subdivision (4), 60 miles
  per hour on a highway that is outside an urban district and not a
  highway numbered by this state or the United States;
               (4)  outside an urban district:
                     (A)  60 miles per hour if the vehicle is a school
  bus that [has passed a commercial motor vehicle inspection under
  Section 548.201 and] is on a highway numbered by the United States
  or this state, including a farm-to-market road; or
                     (B)  50 miles per hour if the vehicle is a school
  bus that[:
                           [(i)     has not passed a commercial motor
  vehicle inspection under Section 548.201; or
                           [(ii)]  is traveling on a highway not
  numbered by the United States or this state;
               (5)  on a beach, 15 miles per hour; or
               (6)  on a county road adjacent to a public beach, 15
  miles per hour, if declared by the commissioners court of the
  county.
         SECTION 10.  Section 547.601, Transportation Code, is
  amended to read as follows:
         Sec. 547.601.  SAFETY BELTS REQUIRED. A motor vehicle
  [required by Chapter 548 to be inspected] shall be equipped with
  front safety belts if safety belt anchorages were part of the
  manufacturer's original equipment on the vehicle.
         SECTION 11.  The heading to Chapter 548, Transportation
  Code, is amended to read as follows:
  CHAPTER 548.  [COMPULSORY] INSPECTION OF VEHICLES
         SECTION 12.  Section 548.001(10), Transportation Code, is
  amended to read as follows:
               (10)  "Vehicle inspection report" means a report issued
  by an inspector or an inspection station for a vehicle that
  indicates whether the vehicle has passed an [the safety and, if
  applicable,] emissions inspection [inspections] required by this
  chapter.
         SECTION 13.  Section 548.005, Transportation Code, is
  amended to read as follows:
         Sec. 548.005.  INSPECTION ONLY BY CERTAIN [STATE-CERTIFIED
  AND SUPERVISED] INSPECTION STATIONS [STATION]. A compulsory
  inspection under this chapter may be made only by an inspection
  station, except that the department may:
               (1)  permit inspection to be made by an inspector under
  terms and conditions the department prescribes;
               (2)  authorize the acceptance in this state of a
  certificate of inspection and approval issued in another state
  having a similar inspection law; [and]
               (3)  authorize the acceptance in this state of a
  certificate of inspection and approval issued in compliance with 49
  C.F.R. Part 396 to a motor bus, as defined by Section 502.001, that
  is registered in this state but is not domiciled in this state; and
               (4)  authorize the acceptance in this state of a
  certificate of inspection and approval issued:
                     (A)  by an inspector qualified under 49 C.F.R.
  Part 396 acting as an employee or authorized agent of the owner of a
  commercial fleet, as defined in Section 502.001; and
                     (B)  to a commercial motor vehicle that is:
                           (i)  part of the fleet; and
                           (ii)  registered in this state.
         SECTION 14.  Section 548.006(b), Transportation Code, is
  amended to read as follows:
         (b)  The members of the 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];
               (2)  one person to represent manufacturers of motor
  vehicle emissions inspection devices;
               (3)  one person to represent independent vehicle
  equipment repair technicians; and
               (4)  one person to represent the public interest.
         SECTION 15.  Section 548.052, Transportation Code, is
  transferred to Subchapter K, Chapter 547, Transportation Code,
  redesignated as Section 547.6011, Transportation Code, and amended
  to read as follows:
         Sec. 547.6011 [548.052].  VEHICLES NOT REQUIRED TO BE
  EQUIPPED WITH SAFETY BELTS [SUBJECT TO INSPECTION]. Section
  547.601 [This chapter] does not apply to:
               (1)  a trailer, semitrailer, pole trailer, or mobile
  home moving under or bearing a current factory-delivery license
  plate or current in-transit license plate;
               (2)  a vehicle moving under or bearing a paper dealer
  in-transit tag, machinery license, disaster license, parade
  license, prorate tab, one-trip permit, vehicle temporary transit
  permit, antique license, custom vehicle license, street rod
  license, temporary 24-hour permit, or permit license;
               (3)  a trailer, semitrailer, pole trailer, or mobile
  home having an actual gross weight or registered gross weight of
  4,500 pounds or less;
               (4)  farm machinery, road-building equipment, a farm
  trailer, or a vehicle required to display a slow-moving-vehicle
  emblem under Section 547.703;
               (5)  a former military vehicle, as defined by Section
  504.502;
               (6)  a vehicle qualified for a tax exemption under
  Section 152.092, Tax Code; or
               (7)  a vehicle for which a certificate of title has been
  issued but that is not required to be registered.
         SECTION 16.  Section 548.053, Transportation Code, is
  transferred to Subchapter E, Chapter 548, Transportation Code,
  redesignated as Section 548.255, Transportation Code, and amended
  to read as follows:
         Sec. 548.255  [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 a passing vehicle
  inspection report 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.]
         SECTION 17.  Section 548.105, Transportation Code, is
  transferred to Subchapter E, Chapter 548, Transportation Code, and
  redesignated as Section 548.2521, Transportation Code, to read as
  follows:
         Sec. 548.2521 [548.105].  EVIDENCE OF FINANCIAL
  RESPONSIBILITY AS PREREQUISITE TO ISSUANCE OF PASSING VEHICLE
  INSPECTION REPORT. (a)  An inspection station or inspector may not
  issue a passing vehicle inspection report 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 Section 1952.054, Insurance Code.
         (b)  An inspection station is not liable to a person,
  including a third party, for issuing a passing vehicle inspection
  report 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 18.  Section 548.201, Transportation Code, is
  amended to read as follows:
         Sec. 548.201.  COMMERCIAL MOTOR VEHICLE INSPECTION PROGRAM.
  [(a)]  The commission may [shall] establish an inspection program
  for commercial motor vehicles only if necessary to comply with 
  [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 19.  Subchapter E, Chapter 548, Transportation Code,
  is amended by adding Section 548.257 to read as follows:
         Sec. 548.257.  TIMING OF INSPECTION FOR REGISTRATION-BASED
  ENFORCEMENT.  The commission shall require a vehicle required to be
  inspected under this chapter to pass the required inspection:
               (1)  not earlier than 90 days before the date of
  expiration of the vehicle's registration; or
               (2)  if the vehicle is a used motor vehicle sold by a
  dealer, as defined by Section 503.001, in the 180 days preceding the
  date the dealer sells the vehicle.
         SECTION 20.  Section 548.505, Transportation Code, is
  amended to read as follows:
         Sec. 548.505.  EMISSIONS-RELATED INSPECTION FEE. (a)  The
  department by rule may impose an inspection fee for a vehicle
  inspected under Section 548.301(a) in addition to a fee adopted
  under Section 382.202, Health and Safety Code [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)  providing inspections; and
               (2)  administering the program.
         (b)  A fee described by Subsection (a) must be collected as
  provided by Section 502.361.  [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 21.  Section 548.603(a), Transportation Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person:
               (1)  presents to an official of this state or a
  political subdivision of this state a vehicle inspection report or
  insurance document knowing that the report 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; or
               (2)  [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; or
               [(3)]  knowingly does not comply with an emissions
  inspection requirement for a vehicle.
         SECTION 22.  Section 548.604(a), Transportation Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person operates or
  moves a motor vehicle, trailer, semitrailer, pole trailer, or
  mobile home, or a combination of those vehicles, that is[:
               [(1)]  equipped in violation of this chapter or a rule
  adopted under this chapter[; or
               [(2)     in a mechanical condition that endangers a
  person, including the operator or an occupant, or property].
         SECTION 23.  The following provisions of the Transportation
  Code are repealed:
               (1)  the heading to Subchapter B, Chapter 548;
               (2)  Section 548.051;
               (3)  the heading to Subchapter C, Chapter 548;
               (4)  Sections 548.101, 548.102, 548.103, and 548.104;
               (5)  Sections 548.202 and 548.203;
               (6)  Sections 548.301(d) and 548.3045(b); and
               (7)  Sections 548.501, 548.502, 548.503, 548.504,
  548.5055, 548.508, and 548.509.
         SECTION 24.  Not later than January 1, 2019, the Department
  of Public Safety shall submit to the lieutenant governor and the
  speaker of the house of representatives a report on changes in the
  department's expenses and income that result from implementing the
  changes in law required by this Act, including the increase or
  decrease, if any, of the number of full-time equivalent employees
  needed to administer Chapters 547 and 548, Transportation Code,
  between September 1, 2017, and the date the report is prepared.
         SECTION 25.  The change in law made by this Act applies only
  to an offense committed on or after the effective date of this Act.
  An offense committed before the effective date of this Act is
  governed by the law in effect on the date 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 the
  effective date of this Act if any element of the offense occurred
  before that date.
         SECTION 26.  This Act takes effect January 1, 2018.
 
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