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