HBA-KMH H.B. 1550 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1550 By: Chisum Environmental Regulation 2/24/1999 Introduced BACKGROUND AND PURPOSE Currently, Texas law provides that all cars two to 25 years old in Harris, El Paso, Tarrant, and Dallas counties must pass a $13 tailpipe emissions test before they can be issued a safety inspection sticker. Vehicles less than two years old are not included in the program. During 1997, vehicles two to six years old comprised 43 percent of the cars in the affected counties, but exhibited a one to 1.5 percent failure rate and only accounted for six percent of volatile organic compound emissions from cars. By comparison, vehicles in the seven to 24-year range had an 11 percent failure rate and accounted for the remainder of emissions from cars. H.B. 1550 allows an emissions testing exemption for cars which are less than six years old in exchange for a mitigation fee, which can be used by the county government for a repair assistance and accelerated vehicle retirement program for low-income drivers. This bill provides more enforcement mechanisms for the auto emissions testing program, and provides incentives for counties adjacent to the affected counties to voluntarily participate in auto emissions testing. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill expressly delegates additional rulemaking authority to the Texas Natural Resources Conservation Commission and the Texas Department of Transportation in SECTION 1 (Section 382.209, Health and Safety Code), and to the Texas Department of Public Safety in SECTION 1 (Sections 382.205, 382.209, 382.212, Health and Safety Code) and SECTION 12 (Section 548.306, Transportation Code), and modifies the rulemaking authority previously granted to the Texas Natural Resources Conservation Commission in SECTION 1 (Section 382.205, Health and Safety Code), of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 382, Health and Safety Code, by adding Subchapter G and Sections 382.037-382.039, Health and Safety Code, are transferred to new Subchapter G, renumbered as Sections 382.202-382.208, as follows: SUBCHAPTER G. VEHICLE EMISSIONS Sec. 382.201. DEFINITIONS. Defines "affected county," "commercial vehicle," "fleet vehicle," "participating county," and "vehicle." Sec. 382.202. Redesignated from Section 382.037. Authorizes the Texas Natural Resource Conservation Commission (commission) to conform the motor vehicle emissions inspection and maintenance program (emissions program) authorized under this section to subsequent amendments of the federal Clean Air Act (42 U.S.C. Section 7401 et seq.). Redesignates Subdivisions (h)-(j) to (k)-(n). Sec. 382.203. Redesignated from Section 382.0372. Limits the application of the emissions program established under this section to vehicles at least six, rather than two years old, and less than 35, rather than 25 years old, or subject to test-on-resale requirements under Section 548.3011, Transportation Code, as added by this Act. Authorizes the Texas Department of Public Safety (DPS) to waive the emissions program requirements for a registered owner of a vehicle who cannot afford to comply with the emissions program, based on reasonable income standards, and has spent at least $600, or a minimum amount required to comply with federal law or the Texas air quality state implementation plan, whichever amount is greater; rather than an amount set by the commission, to repair the vehicle, without bringing the vehicle into compliance with emissions standards. Authorizes DPS to waive the emissions program requirements for a vehicle on which at least $100 has been spent to bring the vehicle into compliance, for which parts are not readily available, and that DPS can verify was driven fewer than 5,000 miles since the last safety inspection and reasonably determines will be driven fewer than 5,000 miles during the period before the next safety inspection is required; or a vehicle which is registered under Section 502.274 (Classic Motor Vehicles) or 502.275 (Certain Exhibition Vehicles; Offense), Transportation Code, not regularly used for transportation during the normal course of daily activities, and not operated primarily in a county or group of counties subject to an emissions program established under Subchapter F, Chapter 548, Transportation Code. Sec. 382.204. Redesignated from Section 382.0373. Authorizes DPS to conform the remote sensing program component to subsequent amendments of Section 107(d) of the Clean Air Act (42 U.S.C. Section 7407). Sec. 382.205. Redesignated from 382.0374. Delegates additional rulemaking authority to the commission and the Public Safety Commission to allow by rule alternative vehicle emissions testing, including onboard diagnostic testing, if the technology provides accurate and reliable results, the technology is widely and readily available to persons interested in performing alternative vehicle emissions testing, and the use of alternative testing is not likely to substantially affect federal approval of the Texas air quality state implementation plan. Sec. 382.206. Redesignated from Section 382.0375. Sec. 382.207. Redesignated from Section 382.038. Sec. 382.208. Redesignated from Section 382.039. Sec. 382.209. LOW-INCOME VEHICLE REPAIR ASSISTANCE AND ACCELERATED VEHICLE RETIREMENT PROGRAM. (a) Requires the commission, the Texas Department of Transportation (TxDOT), and the Public Safety Commission by joint rule to establish and authorize the commissioners court of an affected county to implement a lowincome vehicle repair assistance and accelerated retirement program (assistance program) subject to agency oversight that may include reasonable periodic commission audits. (b) Provides that these rules must provide procedures for ensuring that an assistance program implemented under this authority does not apply to a vehicle that is registered under Section 502.274 (Classic Motor Cars) or 502.275 (Certain Exhibition Vehicles; Offense), Transportation Code, and not regularly used for transportation during the normal course of daily activities. (c) Requires an assistance program established under this section to provide monetary or other compensatory assistance for repairs directly related to bringing certain vehicles that have failed a required emissions tests into compliance with emissions requirements, and a replacement vehicle for a vehicle 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. (d) Restricts eligibility of a vehicle for participation in the assistance program unless the registration of the vehicle is current and reflects that the vehicle has been registered in the county implementing the assistance program for the two years preceding the application for participation in the assistance program, the commissioners court of the county administering the assistance program determines that the vehicle meets the eligibility criteria adopted by the commission, TxDOT, and the Public Safety Commission, and if the vehicle is to be repaired, the repair is done by a repair facility recognized by DPS. (e) Provides that a fleet vehicle, a vehicle owned or leased by a governmental entity, or a commercial vehicle is not eligible to participate in the assistance program. (g) Provides that participation in the assistance program by an affected county is not mandatory. Requires emissions reductions attributable to the assistance program before a county has been designated as a nonattainment county to be considered as emissions reductions credit, to the extent allowed by federal law, if the county is later determined to be a nonattainment county. Sec. 382.210. IMPLEMENTATION GUIDELINES. Requires the commission by rule to adopt guidelines to assist a participating county in implementing the assistance program. Sets forth the minimum required guidelines. Sec. 382.211. LOCAL ADVISORY PANEL. Authorizes the commissioners court of a participating county to appoint a local advisory panel consisting of representatives of automobile dealerships, the automotive repair industry, safety inspection facilities, the public, and locally affected governments. Sec. 382.212. EMISSIONS REDUCTION CREDIT. Defines "emissions reduction credit" to mean an emissions reduction certified by the commission that is created by eliminating future emissions, quantified during or before the period in which emissions reductions are made, expressed in tons or partial tons per year, and banked by the commission in accordance with commission rules relating to emissions banking. Requires the commission by rule to authorize the assignment of a percentage of emissions reduction credit to a private, commercial, or business entity that purchases, for accelerated retirement, a qualified vehicle under the assistance program; the transferability of an assigned emissions reduction credit; the use emissions reduction credit by the holder of the credit against any state or federal emissions requirements applicable to a facility owned or operated by the holder of the credit; the assignment of a percentage of emissions reduction credit on the retirement of a vehicle to the owner or lessor of the vehicle; and other actions relating to the disposition or use of emissions reduction credit that the commission determines will benefit the implementation of the assistance program. Sec. 382.213. DISPOSITION OF RETIRED VEHICLE. Prohibits the resale and reuse of a vehicle retired under the assistance program. Provides that the vehicle must be destroyed, recycled, dismantled and its parts sold as used parts, or placed in a storage facility of this assistance program and subsequently destroyed, recycled, or dismantled and its parts sold or used in the assistance program. Sec. 382.214. SALE OF VEHICLE WITH INTENT TO DEFRAUD. Provides that it is a third-degree felony for a person with intent to defraud to sell a vehicle to retire it under the assistance program or sell a vehicle purchased for retirement under the assistance program. Sec. 382.215. SALE OF VEHICLE NOT REQUIRED. Provides that this subchapter does not require a vehicle which has failed an emissions test to be sold or destroyed by the owner. Sec. 382.216. INCENTIVES FOR VOLUNTARY PARTICIPATION IN VEHICLE EMISSIONS INSPECTION AND MAINTENANCE PROGRAM. Requires the commission, TxDOT, and the Public Safety Commission to encourage the implementation in counties likely to exceed federal clean air standards of the emissions program and the assistance program; establish incentives for counties to voluntarily implement these programs; designate a county that voluntarily implements these programs as a "Clean Air County," and give preference to a county designated as a Clean Air County in any federal or state clean air program. SECTION 2. Amends 382.0622(a), Transportation Code, to add fees collected by a county assessorcollector under Section 548.3014, Transportation Code, as added by this Act, to the fees collected under the Clean Air Act. Makes conforming and nonsubstantive changes. SECTION 3. Amends Subchapter B, Chapter 501, Transportation Code, by adding Section 501.0275, as follows: Sec. 501.0275. DENIAL OF TITLE RECEIPT OR CERTIFICATE OF TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS TESTING. Prohibits a county clerk from issuing a title receipt and prohibits the commission from issuing a certificate of title for a vehicle subject to Section 548.3011 (Emissions Test on Resale), added by this Act, unless proof that the vehicle has passed a vehicle emissions test as required by that section, in a form authorized by that section, is presented with the application for certificate of title. SECTION 4. Amends Section 502.003, Transportation Code, by amending Subsection (a) and Subsection (e), as follows: (a) Makes a conforming change. (e) Provides that this section does not affect the authority of a county to impose a registration-based mitigation fee under Section 548.3013, Transportation Code, as added by this Act, to fund the assistance program established under Section 382.209, Health and Safety Code, as added by this Act. SECTION 5. Amends Section 502.009(a), Transportation Code, as added by Chapter 1069, Acts of the 75th Legislature, Regular Session, 1997, to add Sections 548.3011 and 548.3013 as additional exceptions to this section. SECTION 6. Amends Subchapter D, Chapter 502, Transportation Code, by adding Sections 502.1535, 502.1695, and 502.1801, as follows: Sec. 502.1535. EVIDENCE OF VEHICLE EMISSIONS INSPECTION. Prohibits an assessor-collector from registering a motor vehicle subject to Section 548.3011 unless proof that the vehicle has passed a vehicle emissions test as required by that section, in a form authorized by that section, is presented with the application for registration. Sec. 502.1695. PAYMENT OF MITIGATION FEE REQUIRED. Prohibits the assessorcollector from registering a motor vehicle subject to Section 548.3013 unless the mitigation fee required by that section is paid at the time application for registration is submitted to the assessor-collector. Sec. 502.1801. ISSUANCE OF COUNTY IDENTIFICATION LICENSE PLATE STICKER. Requires the assessor-collector to issue to an applicant for motor vehicle registration a county identification license plate sticker (sticker) identifying the county in which the vehicle is registered, on payment of the appropriate registration fee. Requires a sticker to be attached to the rear license plate of the vehicle in the manner designated by TxDOT. Requires TxDOT to design and provide the stickers to the assessor-collector in each county at reasonable cost. Authorizes an additional fee for issuance of a sticker under this section, not to exceed the cost of the sticker. SECTION 7. Amends Section 502.404, Transportation Code, by adding Subsection (e) to provide that it is a misdemeanor punishable by a fine not to exceed $200 if a person operates a passenger car or commercial vehicle on a public highway without properly displaying a sticker. Redesignates existing Subsection (e) to Subsection (f). SECTION 8. Amends Section 502.409(a), Transportation Code, to add to the list of things which may not be affixed to a number plate or registration insignia placed on a motor vehicle, insignias not authorized by law, and coatings, coverings, or protective material that distorts angular visibility or detectability. SECTION 9. Amends Section 548.051(a), Transportation Code, to include a fuel tank cap and emissions control equipment to the list of items inspected on a motor vehicle, trailer, semitrailer, pole trailer, or mobile home. SECTION 10. Amends Section 548.301(c), Transportation Code, to remove the exception from the prohibition against a emissions program including a registration-based enforcement. SECTION 11. Amends Subchapter F, Chapter 548, Transportation Code, by adding Sections 548.3011- 548.3014, and 548.305, as follows: Sec. 548.3011. EMISSIONS TEST ON RESALE. (a) Applies this section only to a vehicle issued its most recent certificate of title or registration from a county without an emissions program, and for which ownership has changed. (b) Prohibits a vehicle subject to this section from being eligible for a title receipt under Section 501.024, a certificate of title under Section 501.026, or registration under Chapter 502 in a county with an emissions program unless proof is presented with the application for certificate of title or registration 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 assessor-collector, has passed an approved vehicle emissions test in the county in which it is to be titled or registered. Authorizes the proof required by the emissions program to be in the form of a Vehicle Inspection Report or other proof of emissions program compliance as authorized by DPS. Sec. 548.3012. EXEMPTION: VEHICLE NOT USED PRIMARILY IN COUNTY OF REGISTRATION. Applies this section only to a vehicle that is to be registered in a county with an emissions program, and will be used in that county for fewer than 60 days during the registration period for which registration is sought. Authorizes the owner to obtain an exemption under this section by submitting to the assessor-collector an affidavit stating that the vehicle meets the above eligibility requirements. Sec. 548.3013. PAYMENT OF MITIGATION FEE IN LIEU OF EMISSIONS TEST REQUIRED FOR CERTAIN VEHICLES. Applies this section, with an exception, only to a vehicle that is less than six years old, and is registered in a county with a emissions program. Provides that a vehicle subject to this section must pay a mitigation fee of $10 as a condition of registration, and is not required to pass a vehicle emissions inspection as a condition of registration of the vehicle. Provides that the mitigation fee must be paid each time the vehicle is registered during the time it is subject to this section. Exempts a vehicle that is subject to the test-on-resale requirements of 548.3011. Sec. 548.3014. MITIGATION FEE ACCOUNT. Assigns the meaning of "participating county" to that set forth in Section 382.201, Health and Safety Code. Requires a county to retain in separate accounts mitigation fees (fees) collected under Section 548.3013. Authorizes the county to use the fees only for the purchase of stickers from DPS and for administering and implementing the assistance program. Requires the assessor-collector in a county with an emissions program to pay the cost of the stickers from the fee account before using the revenue in the account for administering and implementing the assistance program or remitting any of the remainder if the county does not have an assistance program. Authorizes participating counties to pool fees for administering and implementing an emissions program. Prohibits a county from expending more than 10 percent of the fees collected annually for administrative costs of the assistance program. Requires the assessorcollector, with an exception, to remit the mitigation fees collected for the preceding quarter each calendar quarter. Requires the state comptroller to deposit the fees to the credit of the clean air account, authorized by Section 382.0622 (Clean Air Act Fees), Health and Safety Code. Prohibits the amount of funds in a fee account from exceeding an amount equal to the product of the number of vehicles registered in the county multiplied by the amount of the fee required. Requires the assessor-collector to remit excess fees to the comptroller to be applied to the credit of the clean air account. Sec. 548.305. REQUIREMENT FOR ISSUANCE OF CERTIFICATE OF INSPECTION FOR VEHICLES IN CERTAIN COUNTIES. Prohibits issuance by an inspection station or inspector of an inspection certificate under this chapter for a vehicle with a sticker on the plate from a county with an emissions program unless the applicant presents proof in the prescribed form that the vehicle has passed the emissions test, the fee has been paid or the vehicle is exempt from payment of the fee, the vehicle qualifies for waiver or time extension, or the vehicle is exempt from or otherwise not subject to the emissions program. SECTION 12. Amends Section 548.306, Transportation Code, by adding Subsections (k), (l), (m), and (n), as follows: (k) Requires a hearing for a citation issued under this section to be conducted by a justice of the peace of any precinct in the county in which the subject vehicle is registered. (l) Prohibits enforcement of the remote sensing component of the emissions program from involving any method of screening in which the registered owner of a vehicle found to have allowable emissions by remote sensing technology is charged a fee. (m) Authorizes DPS, by rule, to require that a vehicle detected by on-road testing as having excessive emissions be assessed an on-road emissions testing fee not to exceed the emissions testing fee charged by a certified emissions testing facility. (n) Authorizes DPS, by rule, to establish procedures for reimbursing a fee imposed under Subsection (m) if the owner demonstrates to DPS's satisfaction that the vehicle passed an authorized emissions test not later than the 30th day after the date the vehicle owner received notice that the vehicle was detected as having excessive emissions, and the vehicle was not repaired between the date of detection and the date of the verification emissions test. SECTION 13. Amends Sections 548.405(a) and (c), Transportation Code, by extending the conduct for which a person's application for certificate may be denied, or the certificate may be revoked or suspended, or an inspection station or inspector may be placed on probation, or other penalty, to include instances where a person, station or inspector, as is applicable, fails to conduct an inspection, or is in violation or noncompliance of a rule adopted under this chapter. Prohibits a suspension under this section from being probated or deferred. SECTION 14. Amends Section 548.407(l), Transportation Code, to authorize an administrative law judge of the State Office of Administrative Hearings who conducts a hearing under this section and the proposal for decision supports the position of DPS to recommend a denial, revocation, or suspension only. Prohibits recommendation of a reprimand, probated or otherwise deferred disposition of the denial, revocation, or suspension. Authorizes the director of public safety (director) to adopt findings including for costs, fees, and expenses to be paid to DPS, rather than deposited in a special account in the general revenue fund that may be appropriated only to the attorney general. SECTION 15. Amends Section 548.408, Transportation Code, to amend Subsections (a) and (b), and by adding Subsection (f), as follows: (a) Requires the filing of a motion for rehearing in order to appeal an action of the director. (b) Authorizes an attorney who is a regular employee of DPS to represent the director in the appeal. (f) Sets forth that a stay under this section is effective for not more than 90 days after the date the petition for appeal is filed, after which time the director's action shall be reinstated or imposed. Prohibits an extension or additional stay from being granted. SECTION 16. Amends Section 548.501(a), Transportation Code, to increase the fee for inspection of a motor vehicle other than a moped to $12.50, from $10.50. SECTION 17. Amends Section 548.503(a), Transportation Code, to increase the fee for inspection of a passenger car or light truck under Section 548.102, Transportation Code, to $21.75, from $19.75. SECTION 18. Amends Section 548.504(a), Transportation Code, to increase the fee for inspection of a commercial vehicle under the emissions program to $52, from $50. SECTION 19. Amends Section 548.601(a), Transportation Code, to include performing an act prohibited by or failing to perform an act required by this subchapter or a rule adopted under this subchapter in the list of acts or omissions which constitute an offense under this section. Makes a conforming change. SECTION 20. Amends Section 548.602(a), Transportation Code, to clarify that a current inspection certificate must also be valid and appropriate to provide an exception to the restriction set forth in this section. SECTION 21. Requires the commission to seek a binding commitment from the United States Environmental Protection Agency (EPA) that any county that is not required by law but voluntarily chooses to participate in an emissions program and assistance program, as added by this Act, will receive recognition and credit for taking voluntary steps to reduce air pollution if the county is later determined to exceed federally established clean air standards, and will not be penalized for having voluntarily created programs to curb air pollution. Authorizes the Texas Natural Resource Conservation Commission to request assistance from the Texas congressional delegation, counties interested in voluntarily participating in a program, or another state or federal agency in order to obtain a binding commitment as set forth above. SECTION 22. Effective date: September 1, 1999, except as to Section 502.404(3), Transportation Code, as added by this Act, which takes effect September 1, 2000. SECTION 23. Makes application of this Act prospective. SECTION 24. Emergency clause.