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  87R18527 SRA-F
 
  By: Canales H.B. No. 3514
 
  Substitute the following for H.B. No. 3514:
 
  By:  Thompson of Brazoria C.S.H.B. No. 3514
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the functions of the Texas Department of Motor
  Vehicles; authorizing a penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 306.001(9), Finance Code, is amended to
  read as follows:
               (9)  "Qualified commercial loan":
                     (A)  means:
                           (i)  a commercial loan in which one or more
  persons as part of the same transaction lends, advances, borrows,
  or receives, or is obligated to lend or advance or entitled to
  borrow or receive, money or credit with an aggregate value of:
                                 (a)  $3 million or more if the
  commercial loan is secured by real property; or
                                 (b)  $250,000 or more if the commercial
  loan is not secured by real property and, if the aggregate value of
  the commercial loan is less than $500,000, the loan documents
  contain a written certification from the borrower that:
                                       (1)  the borrower has been
  advised by the lender to seek the advice of an attorney and an
  accountant in connection with the commercial loan; and
                                       (2)  the borrower has had the
  opportunity to seek the advice of an attorney and accountant of the
  borrower's choice in connection with the commercial loan; and
                           (ii)  a renewal or extension of a commercial
  loan described by Subparagraph (i) [Paragraph (A)], regardless of
  the principal amount of the loan at the time of the renewal or
  extension; and
                     (B)  does not include a commercial loan made for
  the purpose of financing a business licensed by the [Motor Vehicle
  Board of the] Texas Department of Motor Vehicles under Section
  2301.251(a), Occupations Code.
         SECTION 2.  Section 572.003(c), Government Code, is amended
  to read as follows:
         (c)  The term means a member of:
               (1)  the Public Utility Commission of Texas;
               (2)  the Texas Commission on Environmental Quality;
               (3)  the Texas Alcoholic Beverage Commission;
               (4)  the Finance Commission of Texas;
               (5)  the Texas Facilities Commission;
               (6)  the Texas Board of Criminal Justice;
               (7)  the board of trustees of the Employees Retirement
  System of Texas;
               (8)  the Texas Transportation Commission;
               (9)  the Texas Department of Insurance;
               (10)  the Parks and Wildlife Commission;
               (11)  the Public Safety Commission;
               (12)  the Texas Ethics Commission;
               (13)  the State Securities Board;
               (14)  the Texas Water Development Board;
               (15)  the governing board of a public senior college or
  university as defined by Section 61.003, Education Code, or of The
  University of Texas Southwestern Medical Center, The University of
  Texas Medical Branch at Galveston, The University of Texas Health
  Science Center at Houston, The University of Texas Health Science
  Center at San Antonio, The University of Texas M. D. Anderson Cancer
  Center, The University of Texas Health Science Center at Tyler,
  University of North Texas Health Science Center at Fort Worth,
  Texas Tech University Health Sciences Center, Texas State Technical
  College--Harlingen, Texas State Technical College--Marshall, Texas
  State Technical College--Sweetwater, or Texas State Technical
  College--Waco;
               (16)  the Texas Higher Education Coordinating Board;
               (17)  the Texas Workforce Commission;
               (18)  the board of trustees of the Teacher Retirement
  System of Texas;
               (19)  the Credit Union Commission;
               (20)  the School Land Board;
               (21)  the board of the Texas Department of Housing and
  Community Affairs;
               (22)  the Texas Racing Commission;
               (23)  the State Board of Dental Examiners;
               (24)  the Texas Medical Board;
               (25)  the Board of Pardons and Paroles;
               (26)  the Texas State Board of Pharmacy;
               (27)  the Department of Information Resources
  governing board;
               (28)  the board of the Texas Department of Motor
  Vehicles [Motor Vehicle Board];
               (29)  the Texas Real Estate Commission;
               (30)  the board of directors of the State Bar of Texas;
               (31)  the Bond Review Board;
               (32)  the Health and Human Services Commission;
               (33)  the Texas Funeral Service Commission;
               (34)  the board of directors of a river authority
  created under the Texas Constitution or a statute of this state;
               (35)  the Texas Lottery Commission; or
               (36)  the Cancer Prevention and Research Institute of
  Texas.
         SECTION 3.  Section 2301.453(c), Occupations Code, is
  amended to read as follows:
         (c)  Except as provided by Subsection (d), the manufacturer,
  distributor, or representative must provide written notice by
  registered or certified mail to the dealer and the board stating the
  specific grounds for the termination or discontinuance. The notice
  must:
               (1)  be received not later than the 60th day before the
  effective date of the termination or discontinuance; and
               (2)  contain on its first page a conspicuous statement
  that reads: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST
  WITH THE TEXAS DEPARTMENT OF MOTOR VEHICLES [VEHICLE BOARD] IN
  AUSTIN, TEXAS, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE
  PROPOSED TERMINATION OR DISCONTINUANCE OF YOUR FRANCHISE UNDER THE
  TERMS OF CHAPTER 2301, OCCUPATIONS CODE, IF YOU OPPOSE THIS
  ACTION."
         SECTION 4.  Section 2301.454(b), Occupations Code, is
  amended to read as follows:
         (b)  The notice required by Subsection (a)(1) must:
               (1)  be given not later than the 60th day before the
  date of the modification or replacement; and
               (2)  contain on its first page a conspicuous statement
  that reads: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST
  WITH THE TEXAS DEPARTMENT OF MOTOR VEHICLES [VEHICLE BOARD] IN
  AUSTIN, TEXAS, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE
  PROPOSED MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE UNDER THE
  TERMS OF CHAPTER 2301, OCCUPATIONS CODE, IF YOU OPPOSE THIS
  ACTION."
         SECTION 5.  Subchapter M, Chapter 2301, Occupations Code, is
  amended by adding Section 2301.612 to read as follows:
         Sec. 2301.612.  OPEN RECORDS EXCEPTION. Information filed
  with the department under this subchapter is not a public record and
  is not subject to disclosure under Chapter 552, Government Code,
  until the complaint is resolved by a final order of the department.
         SECTION 6.  Section 2301.711, Occupations Code, is amended
  to read as follows:
         Sec. 2301.711.  ORDERS AND DECISIONS. (a) Except as
  otherwise provided by this chapter, the [The] board or a [other]
  person delegated final order authority under Section 2301.154 shall
  issue final orders for the implementation and enforcement of this
  chapter and Chapter 503, Transportation Code.
         (b)  An order or decision under this chapter must:
               (1)  include a separate finding of fact with respect to
  each specific issue required by law to be considered in reaching a
  decision;
               (2)  set forth additional findings of fact and
  conclusions of law on which the order or decision is based;
               (3)  give the reasons for the particular actions taken;
  and
               (4)  be signed by the presiding officer or assistant
  presiding officer for the board, a [or other] person delegated
  final order authority under Section 2301.154, or a hearings
  examiner in a contested case hearing under Section 2301.204 or
  Subchapter M.
         SECTION 7.  Section 2301.712(b), Occupations Code, is
  amended to read as follows:
         (b)  If a person who brings a complaint under Subchapter M
  prevails in the case, the [board or a person delegated power from
  the board under Section 2301.154 shall order the] nonprevailing
  party in the case shall [to] reimburse the amount of the filing fee
  for the case.
         SECTION 8.  Section 2301.713(c), Occupations Code, is
  amended to read as follows:
         (c)  A motion for rehearing in a contested case under Section
  2301.204 or Subchapter M must be filed with [and decided by] the
  chief hearings examiner. The chief hearings examiner may designate
  a person to decide the motion.
         SECTION 9.  Section 23.121, Tax Code, is amended by amending
  Subsection (h) and adding Subsection (h-1) to read as follows:
         (h)  If a dealer fails to file a declaration as required by
  this section, [or if, on the declaration required by this section, a
  dealer reports the sale of fewer than five motor vehicles in the
  prior year,] the chief appraiser may [shall] report the dealer
  [that fact] to the Texas Department of Motor Vehicles to [and the
  department shall] initiate cancellation of the dealer's general
  distinguishing number [termination proceedings]. The chief
  appraiser shall include with the report written verification that
  the chief appraiser informed the dealer of the requirement to file a
  declaration under this section [a copy of a declaration, if any,
  indicating the sale by a dealer of fewer than five motor vehicles in
  the prior year. A report by a chief appraiser to the Texas
  Department of Motor Vehicles as provided by this subsection is
  prima facie grounds for the cancellation of the dealer's general
  distinguishing number under Section 503.038(a)(9), Transportation
  Code, or for refusal by the Texas Department of Motor Vehicles to
  renew the dealer's general distinguishing number].
         (h-1)  If, on the declaration required by this section, a
  dealer reports the sale of fewer than five motor vehicles in the
  prior year, the chief appraiser shall report the dealer to the Texas
  Department of Motor Vehicles to initiate cancellation of the
  dealer's general distinguishing number. The chief appraiser shall
  include with the report a copy of a declaration indicating the sale
  by a dealer of fewer than five motor vehicles in the prior year. A
  report by a chief appraiser to the Texas Department of Motor
  Vehicles as provided by this subsection is prima facie grounds for
  the cancellation of the dealer's general distinguishing number
  under Section 503.038(a)(9), Transportation Code, or for refusal by
  the Texas Department of Motor Vehicles to renew the dealer's
  general distinguishing number.
         SECTION 10.  Section 201.805(a), Transportation Code, is
  amended to read as follows:
         (a)  The department shall annually publish in appropriate
  media and on the department's Internet website in a format that
  allows the information to be read into a commercially available
  electronic database a statistical comparison of department
  districts and the following information, calculated on a per capita
  basis considering the most recent census data and listed for each
  county and for the state for each fiscal year:
               (1)  the number of square miles;
               (2)  the number of vehicles registered;
               (3)  the population;
               (4)  daily vehicle miles;
               (5)  the number of centerline miles and lane miles;
               (6)  construction, maintenance, and contracted routine
  and preventive maintenance expenditures;
               (7)  combined construction, maintenance, and
  contracted routine and preventive maintenance expenditures;
               (8)  the number of district and division office
  construction and maintenance employees;
               (9)  information regarding grant programs, including:
                     (A)  [Motor Vehicle Crime Prevention Authority
  grants;
                     [(B)]  Routine Airport Maintenance Program
  grants;
                     (B) [(C)]  Public Transportation Grant Program
  grants;
                     (C) [(D)]  Medical Transportation Program grants;
  and
                     (D) [(E)]  aviation grants or aviation capital
  improvement grants;
               (10)  approved State Infrastructure Bank loans;
               (11)  Texas Traffic Safety Program grants and
  expenditures;
               (12)  the dollar amount of any pass-through toll
  agreements;
               (13)  the percentage of highway construction projects
  completed on time;
               (14)  the percentage of highway construction projects
  that cost:
                     (A)  more than the contract amount; and
                     (B)  less than the contract amount; and
               (15)  a description of real property acquired by the
  department through the exercise of eminent domain, including the
  acreage of the property and the location of the property.
         SECTION 11.  Section 503.009(b), Transportation Code, as
  repealed by Chapter 1135 (H.B. 2741), Acts of the 83rd Legislature,
  Regular Session, 2013, and amended by Chapter 1379 (H.B. 1692),
  Acts of the 83rd Legislature, Regular Session, 2013, is reenacted
  and amended to read as follows:
         (b)  The procedures applicable to a hearing conducted under
  this section are those applicable to a hearing conducted under
  Chapter 2301 [as provided by Section 2301.606], Occupations Code,
  or Chapter 2001, Government Code.
         SECTION 12.  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 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 13.  Section 1006.152, Transportation Code, is
  amended by adding Subsection (f) to read as follows:
         (f)  The authority may recover from an insurer requesting a
  refund under this section any costs associated with a denied or
  improperly requested refund.
         SECTION 14.  Section 1006.153, Transportation Code, is
  amended by adding Subsections (b-1), (b-2), and (b-3) and amending
  Subsection (e) to read as follows:
         (b-1)  A penalty shall be imposed on an insurer for the
  delinquent payment of the fee required by this section or the
  delinquent filing of any report of the fee required by rule. The
  penalty shall be assessed in the manner prescribed for the
  assessment of a penalty for a delinquent tax payment or filing of a
  report under Section 111.061(a), Tax Code. Interest accrues in the
  manner described by Section 111.060, Tax Code, on any fee paid after
  the due date in Subsection (b).
         (b-2)  The authority may audit or contract for the audit of
  fees paid by an insurer under this section.
         (b-3)  A determination under this section shall be made in
  accordance with procedures the authority adopts by rule. An insurer
  assessed a penalty or interest under Subsection (b-1) may appeal
  the assessment to the authority. The authority shall make the final
  decision on the appeal by a simple majority vote. The appeal of an
  assessment of a penalty or interest is not a contested case under
  Chapter 2001, Government Code.
         (e)  Out of each fee collected under Subsection (b) or an
  amount collected under Subsection (b-1):
               (1)  20 percent shall be appropriated to the authority
  for the purposes of this chapter;
               (2)  20 percent shall be deposited to the credit of the
  general revenue fund, to be used only for criminal justice
  purposes; and
               (3)  60 percent shall be deposited to the credit of the
  designated trauma facility and emergency medical services account
  under Section 780.003, Health and Safety Code, to be used only for
  the criminal justice purpose of funding designated trauma
  facilities, county and regional emergency medical services, and
  trauma care systems that provide trauma care and emergency medical
  services to victims of accidents resulting from traffic offenses.
         SECTION 15.  Section 1006.154, Transportation Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  For purposes of Subsection (b), administrative expenses
  do not include administrative expenses related to the collection of
  a fee under Section 1006.153, including salaries.
         SECTION 16.  (a) Section 1006.153(b-1), Transportation
  Code, as added by this Act, applies only to a fee due on or after the
  effective date of this Act. A fee due before the effective date of
  this Act is governed by the law in effect on the date the fee was
  due, and the former law is continued in effect for that purpose.
         (b)  Section 503.009(b), Transportation Code, as reenacted
  and amended by this Act, applies only to a hearing under Chapter
  503, Transportation Code, that is commenced on or after the
  effective date of this Act. A hearing commenced before the
  effective date of this Act is governed by the law in effect
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 17.  This Act takes effect September 1, 2021.