By: Isett, Pickett, Harper-Brown H.B. No. 300
        (Senate Sponsor - Hegar)
         (In the Senate - Received from the House May 12, 2009;
  May 12, 2009, read first time and referred to Committee on
  Transportation and Homeland Security; May 23, 2009, reported
  adversely, with favorable Committee Substitute by the following
  vote:  Yeas 9, Nays 0; May 23, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 300 By:  Carona
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the continuation and functions of the Texas Department
  of Transportation, including the transfer of certain functions to
  the Texas Department of Motor Vehicles and the Texas Department of
  Licensing and Regulation; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. GENERAL COMMISSION AND DEPARTMENT PROVISIONS
         SECTION 1.01.  Sections 201.051(a), (f), (g), and (j),
  Transportation Code, are amended to read as follows:
         (a)  The Texas Transportation Commission consists of five
  members appointed by the governor with the advice and consent of the
  senate. If the governor does not appoint the commissioners before
  February 28 of an odd-numbered year, the lieutenant governor shall
  appoint the commissioners. A commissioner appointed by the
  lieutenant governor is not subject to confirmation by the senate.
         (f)  An officer, employee, or paid consultant of a Texas
  trade association in the field of road construction or maintenance,
  aviation, or outdoor advertising is not eligible for appointment as
  [or a Texas trade association of automobile dealers may not be] a
  member of the commission.
         (g)  The spouse of an officer, manager, or paid consultant of
  a Texas trade association in the field of road construction or
  maintenance, aviation, or outdoor advertising is not eligible for
  appointment as [or a Texas association of automobile dealers may
  not be] a member of the commission.
         (j)  In this section, "Texas trade association" means a
  [nonprofit,] cooperative[,] and voluntarily joined statewide
  association of business or professional competitors in this state
  designed to assist its members and its industry or profession in
  dealing with mutual business or professional problems and in
  promoting their common interest.
         SECTION 1.02.  Section 201.052, Transportation Code, is
  amended to read as follows:
         Sec. 201.052.  TERMS.  Members of the commission serve
  two-year [staggered six-year] terms[, with the terms of either one
  or two members] expiring February 1 of each odd-numbered year.
         SECTION 1.03.  Section 201.054, Transportation Code, is
  amended to read as follows:
         Sec. 201.054.  COMMISSION MEETINGS. (a) The commission
  shall hold regular meetings at least once a month and special
  meetings at the call of the chair. Commissioners shall attend the
  meetings of the commission. The chair shall oversee the
  preparation of an agenda for each meeting and ensure that a copy is
  provided to each commissioner at least seven days before the
  meeting.
         (b)  The commission shall make a sound and video recording of
  each regular and called meeting of the commission and of any
  workshop conducted by the commission. Not later than 24 hours after
  a meeting or workshop of the commission is adjourned, the
  department shall post the sound and video recording of the meeting
  or workshop on the department's Internet website.
         SECTION 1.04.  Subchapter B, Chapter 201, Transportation
  Code, is amended by adding Section 201.060 to read as follows:
         Sec. 201.060.  ASSISTANTS TO COMMISSIONERS. An assistant to
  a commissioner is required to report only to that commissioner. An
  assistant to a commissioner may not be required to report to the
  director.
         SECTION 1.05.  Subchapter C, Chapter 201, Transportation
  Code, is amended by adding Sections 201.117 and 201.118 to read as
  follows:
         Sec. 201.117.  TECHNOLOGICAL SOLUTIONS. The commission
  shall implement a policy requiring the department to use
  appropriate technological solutions to improve the department's
  ability to perform its functions. The policy must ensure that the
  public is able to interact with the department on the Internet.
         Sec. 201.118.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
  RESOLUTION PROCEDURES. (a) The commission shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008, Government Code, for the adoption of department rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009, Government Code, to assist in the
  resolution of internal and external disputes under the department's
  jurisdiction.
         (b)  The department's procedures relating to alternative
  dispute resolution must conform, to the extent possible, to any
  model guidelines issued by the State Office of Administrative
  Hearings for the use of alternative dispute resolution by state
  agencies.
         (c)  The commission shall designate a trained person to:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  serve as a resource for any training needed to
  implement the procedures for negotiated rulemaking or alternative
  dispute resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures, as implemented by the department.
         SECTION 1.06.  Subchapter C, Chapter 201, Transportation
  Code, is amended by adding Section 201.119 to read as follows:
         Sec. 201.119.  ADVISORY COMMITTEES. (a)  The commission may
  establish, as it considers necessary, advisory committees on any of
  the matters under its jurisdiction.
         (b)  The commission shall determine the purpose, duties, and
  membership of each advisory committee.
         SECTION 1.07.  Sections 201.202(a) and (c), Transportation
  Code, are amended to read as follows:
         (a)  The commission shall organize the department into
  divisions to accomplish the department's functions and the duties
  assigned to it, including divisions for:
               (1)  aviation;
               (2)  highways and roads;
               (3)  public transportation; and
               (4)  rail [motor vehicle titles and registration].
         (c)  A [In appointing a] person designated by the commission
  as the department's chief financial officer must report directly to
  the commission [to supervise a function previously performed by the
  former State Department of Highways and Public Transportation,
  Texas Department of Aviation, or Texas Turnpike Authority,
  preference shall be given to a person employed in a similar position
  in that former agency].
         SECTION 1.08.  Section 201.204, Transportation Code, is
  amended to read as follows:
         Sec. 201.204.  SUNSET PROVISION. The Texas Department of
  Transportation is subject to Chapter 325, Government Code (Texas
  Sunset Act). Unless continued in existence as provided by that
  chapter, the department is abolished September 1, 2013 [2009].
         SECTION 1.09.  Subchapter D, Chapter 201, Transportation
  Code, is amended by adding Sections 201.210, 201.211, 201.212, and
  201.213 to read as follows:
         Sec. 201.210.  COMPLIANCE CERTIFICATION. (a) Not later
  than September 1 of each year, the director and the department's
  chief financial officer shall each certify in writing that the
  director or the officer, as applicable:
               (1)  is responsible for establishing and maintaining
  the department's internal controls;
               (2)  has evaluated the effectiveness of the
  department's internal controls;
               (3)  has presented conclusions about the effectiveness
  of the department's internal controls and applicable reporting
  requirements; and
               (4)  has effectively complied with all applicable
  legislative mandates.
         (b)  The director and the department's chief financial
  officer shall submit the certifications required by Subsection (a)
  to the governor, the lieutenant governor, the speaker of the house
  of representatives, the chair of the standing committee of each
  house of the legislature with primary jurisdiction over
  transportation matters, and the Transportation Legislative
  Oversight Committee created under Section 201.625.
         (c)  The Transportation Legislative Oversight Committee
  shall recommend to the 82nd Legislature appropriate penalties for
  failure to submit the certifications required by Subsection (a).
         Sec. 201.211.  LEGISLATIVE LOBBYING. (a) In addition to
  Section 556.006, Government Code, a member of the commission, the
  director, or a department employee may not use money under the
  department's control or state resources to engage in an activity to
  influence the passage or defeat of legislation, except as provided
  by Subsection (c).
         (b)  Violation of Subsection (a) is grounds for dismissal of
  an employee who directs or carries out the violation.
         (c)  This section does not prohibit a member of the
  commission, the director, or a department employee from using state
  resources to:
               (1)  provide public information or information
  responsive to a request;
               (2)  communicate with officers and employees of the
  federal government in pursuit of federal appropriations; or
               (3)  influence the passage or defeat of federal
  legislation or regulation.
         Sec. 201.212.  ETHICS AFFIRMATION AND HOTLINE. (a) Each
  department employee shall annually affirm the employee's
  commitment to adhere to the ethics policy adopted under Section
  572.051(c), Government Code.
         (b)  The department shall establish and operate a dedicated
  telephone line that enables a person to call the number,
  anonymously or not anonymously, to report alleged fraud, waste, or
  abuse or an alleged violation of the ethics policy adopted under
  Section 572.051(c), Government Code.
         Sec. 201.213.  LEGISLATIVE APPROPRIATIONS REQUEST.
  Department staff shall deliver the department's legislative
  appropriations request to the commission in an open meeting not
  later than the 30th day before the commission adopts the
  legislative appropriations request for submission to the
  Legislative Budget Board.
         SECTION 1.10.  (a) Subchapter D, Chapter 201,
  Transportation Code, is amended by adding Section 201.214 to read
  as follows:
         Sec. 201.214.  ENVIRONMENTAL CERTIFICATION. (a) So as to
  improve environmental accountability in the department, the
  department shall establish a certification process for
  environmental specialists. A person who successfully completes the
  certification process may:
               (1)  perform analyses and reviews of environmental
  reports and documents; and
               (2)  approve environmental reports and documents.
         (b)  The certification process must establish minimum levels
  of training, including continuing education. A person certified by
  the department must successfully complete continuing education on a
  regular basis and be recertified each year.
         (b)  Not later than March 31, 2010, the Texas Department of
  Transportation shall establish the certification process under
  Section 201.214, Transportation Code, as added by Subsection (a) of
  this section.
         (c)  Not later than September 30, 2010, each employee of the
  Texas Department of Transportation whose job includes working on
  the development of environmental reports and documents must have
  successfully completed the certification process under Section
  201.214, Transportation Code, as added by Subsection (a) of this
  section.
         SECTION 1.11.  Section 201.301(a), Transportation Code, is
  amended to read as follows:
         (a)  The commission shall elect an executive director for the
  department. The director must be [a registered professional
  engineer in this state and] experienced and skilled in
  transportation planning, development, construction, and
  maintenance.
         SECTION 1.12.  Section 201.404(b), Transportation Code, is
  amended to read as follows:
         (b)  The director or the director's designee shall develop a
  system of annual performance evaluations that are based on
  documented employee performance. All merit pay for department
  employees must be based on the system established under this
  subsection. If an annual performance evaluation indicates that an
  employee's performance is unsatisfactory, the director or the
  person designated by the director shall consider whether the
  employee should be terminated. The annual performance evaluations
  developed under this subsection must include the evaluation of an
  employee's:
               (1)  professionalism;
               (2)  diligence; and
               (3)  responsiveness to directives and requests from the
  director and the legislature.
         SECTION 1.13.  Section 201.703, Transportation Code, is
  amended to read as follows:
         Sec. 201.703.  EXPENDITURES AND CONTRACTS FOR
  TRANSPORTATION PROJECT OR PROGRAM [ROADS] NOT ON [THE] HIGHWAY
  SYSTEM. (a) The department in conjunction with the Federal Highway
  Administration may spend for a transportation program or for the
  improvement of a transportation project [road] not on [in] the
  state highway system money appropriated by the United States
  Congress, [and] allocated by the United States secretary of
  transportation to the department, and eligible under federal law
  for expenditure on the project or program [road]. That federal
  money may be matched or supplemented by an amount of state money
  necessary for proper construction and performance of the work.
         (b)  State money may not be used exclusively for the
  construction of a road not on [in] the state highway system.
         (c)  The expenditure of state money is limited to the cost of
  construction and engineering, overhead, and other costs on which
  the application of federal money is prohibited or impractical and
  to the cost of providing federally required oversight.
         (d)  The department may:
               (1)  contract for work involving a road that is not on
  the state highway system under this section in accordance with the
  law that would apply to the department if the work were on the state
  highway system; or
               (2)  authorize a local government to contract for the
  work in accordance with commission rule or with the law that would
  apply to the local government for a comparable project.
         SECTION 1.14.  Section 202.021, Transportation Code, is
  amended by amending Subsection (e) and adding Subsection (e-1) to
  read as follows:
         (e)  The commission may waive payment for real property
  transferred to a governmental entity under this section if:
               (1)  the estimated cost of future maintenance on the
  property equals or exceeds the fair value of the property; or
               (2)  the property is a highway right-of-way and the
  governmental entity assumes or has assumed jurisdiction, control,
  and maintenance of the right-of-way for public road purposes.
         (e-1)  If property described by Subsection (e)(2) ceases to
  be used for public road purposes, the real property rights
  transferred under this section terminate and automatically revert
  to and vest in this state.
         SECTION 1.15.  Section 203.031, Transportation Code, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  In the exercise of its authority to manage access to
  or from a controlled access highway under Subsection (a)(2) or (4),
  the commission by rule shall:
               (1)  require that a decision by a department district
  office denying a request for access to a specific location on a
  controlled access highway be in writing and include the reasons for
  the denial;
               (2)  provide procedures for appealing a denial under
  Subdivision (1), including procedures that:
                     (A)  allow the applicant to appeal the denial to
  the department's design division before the 31st day after the date
  written notice of the denial is given to the applicant;
                     (B)  provide that if an appeal under Paragraph (A)
  is not decided before the 91st day after the date the appeal was
  filed, the access applied for must be granted; and
                     (C)  allow the applicant to appeal the decision of
  the design division to the director and, if the decision is
  affirmed, to a board of variance appointed by the director and
  composed of at least three persons who may not be below the level of
  department division director, office director, or district
  engineer and who were not involved in the original decision to deny
  access;
               (3)  provide that properly platted access points to or
  from a controlled access highway that are located on undeveloped
  property are subject to the access management standards in effect
  at the time the points were platted regardless of when the initial
  request for access was submitted to the department, but only if:
                     (A)  development of the property begins and the
  request for access at the platted locations is submitted to the
  department before the fifth anniversary of the date the plat was
  recorded; and
                     (B)  the design of the highway facility in the
  vicinity of the platted access points did not materially change
  after the date the plat was recorded so as to significantly impact
  traffic patterns to the extent that the platted access points
  present a threat to public safety;
               (4)  require that:
                     (A)  owners of land adjacent to a proposed highway
  construction project be provided written notice of the project at
  least 60 days before the date construction begins if the project
  will permanently alter permitted access to or from a controlled
  access highway at the owners' existing locations; and
                     (B)  the access described by Paragraph (A) be
  reinstated to the most practicable extent possible after due
  consideration of the impact on highway safety, mobility, and
  efficient operation of any changed traffic patterns resulting from
  the construction;
               (5)  adopt criteria for determining when a variance to
  access management standards may be granted, including criteria
  that, in addition to highway safety, mobility, and efficient
  operation concerns, takes into consideration any of the following
  consequences resulting from denial of the owner's request for
  access to a specific location on a controlled access highway that
  may impact a property owner:
                     (A)  denial of reasonable access to the property;
  and
                     (B)  undue hardship on a business located on the
  property; and
               (6)  clarify that the remodeling or demolition and
  rebuilding of a business does not cause new access management
  standards to apply unless the department makes an affirmative
  finding in writing that the remodeled or rebuilt business will
  significantly impact traffic patterns to the extent that the
  current access location presents a threat to public safety.
         SECTION 1.16.  Subchapter C, Chapter 202, Transportation
  Code, is amended by adding Section 202.061 to read as follows:
         Sec. 202.061.  ENVIRONMENTAL COVENANT. (a) The commission
  may enter into an environmental covenant for the purpose of
  subjecting real property in which the department has an ownership
  interest to a plan or the performance of work for environmental
  remediation if the plan or work performed is first approved by the
  Texas Commission on Environmental Quality or a federal agency with
  the authority to approve the plan or work under the applicable laws
  and regulations.
         (b)  The environmental covenant must:
               (1)  contain a legally sufficient description of the
  property subject to the covenant;
               (2)  describe the nature of the contamination on or
  under the property, including the contaminants, the source, if
  known, and the location and extent of the contamination; and
               (3)  describe the activity and use limitations on the
  property.
         (c)  The plan or performance of work for environmental
  remediation must:
               (1)  meet applicable state and federal standards for
  environmental remediation; and
               (2)  bring the property into compliance with zoning or
  land use controls imposed on the property by each applicable local
  government.
         (d)  For each property for which the commission may enter
  into an environmental covenant, the commission by order may
  authorize the executive director to execute an environmental
  covenant on behalf of the commission. Not less than 30 days before
  the date the commission considers a proposed order under this
  subsection, the commission must mail to each owner of a property
  interest in the applicable property, each adjacent landowner, and
  each applicable local government a notice that includes a clear and
  concise description of the proposal to enter into the environmental
  covenant and a statement of the manner in which written comments may
  be submitted to the commission.
         SECTION 1.17.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Section 201.625 to read as follows:
         Sec. 201.625.  TRANSPORTATION LEGISLATIVE OVERSIGHT
  COMMITTEE. (a) In this section, "committee" means the
  Transportation Legislative Oversight Committee.
         (b)  The committee is composed of the following members:
               (1)  the chair and all members of the Senate Committee
  on Transportation and Homeland Security;
               (2)  the chair and all members of the House Committee on
  Transportation;
               (3)  the chair of the Senate Committee on Finance; and
               (4)  the chair of the House Committee on
  Appropriations.
         (c)  The chair of the Senate Committee on Transportation and
  Homeland Security and the chair of the House Committee on
  Transportation serve as the presiding officer of the committee on
  an alternating basis, with the chair of the Senate Committee on
  Transportation and Homeland Security serving as the first chair of
  the committee. The presiding officer of the committee serves a
  two-year term that expires February 1 of each odd-numbered year.
         (d)  The committee has all other powers and duties provided
  to a special committee by:
               (1)  Subchapter B, Chapter 301, Government Code;
               (2)  the rules of the senate and the house of
  representatives; and
               (3)  policies of the senate and house committees on
  administration.
         (e)  The committee shall meet at least quarterly and at the
  call of the presiding officer.
         (f)  The committee shall monitor the following:
               (1)  implementation of the changes in law made as a
  result of the sunset review process;
               (2)  the progress made in transference of powers,
  duties, and property from the Texas Department of Transportation to
  the Texas Department of Motor Vehicles;
               (3)  any proposed changes in the organization or
  structure of the department;
               (4)  significant transportation policy initiatives at
  both the state and federal levels;
               (5)  major projects of the department;
               (6)  the financial issues facing the department,
  including the amounts and usage of dedicated and non-dedicated
  state highway funds, the impacts of various bond programs, the
  short-term and long-term cash forecast of the department, possible
  revenue sources for the rail relocation and improvement fund, and
  additional revenue sources for the Texas Mobility Fund; and
               (7)  reports on any subject requested by the committee
  or determined by the department to be beneficial to the committee.
         (g)  The committee shall require the department to provide
  reports to the committee as necessary to effectively perform the
  committee's duties under Subsection (f).
         (h)  When the department files a quarterly financial
  statement required by Section 201.107(a) with the governor, the
  department shall provide a copy of that statement to the committee.
         (i)  Notwithstanding any other provision of this chapter,
  the committee may not recommend specific projects or recommend
  funding for specific projects at the department.
         (j)  The department shall enter into an interagency
  agreement with the legislature, a chamber of the legislature, or a
  legislative agency to provide funding to support the operation of
  the committee from available amounts appropriated to the
  department. The amount provided by the department for a state
  fiscal biennium may not exceed $1 million.
         (k)  This section expires August 31, 2013.
         SECTION 1.18.  Subchapter B, Chapter 223, Transportation
  Code, is amended by adding Section 223.0411 to read as follows:
         Sec. 223.0411.  REPORT. (a) Not later than December 31,
  2009, the comptroller shall submit a report to the governor, the
  Transportation Legislative Oversight Committee, and the
  Legislative Budget Board as provided by this section. In
  developing the report, the comptroller shall collaborate with:
               (1)  the department;
               (2)  the Texas Board of Professional Engineers;
               (3)  the Association of General Contractors; and
               (4)  the Consultant Engineer Council.
         (b)  The report must include:
               (1)  the number of licensed professional engineers and
  graduate engineers employed by the department in each of the
  previous five state fiscal years aggregated by work function and by
  strategy;
               (2)  the dollar amount of highway and bridge projects
  awarded by the department in each of the previous five state fiscal
  years;
               (3)  the cost, including all direct and indirect costs,
  aggregated by type of project per $100 million, of highway and
  bridge projects awarded by the department in each of the previous
  five state fiscal years, including the percentage of those projects
  for which activities were conducted by:
                     (A)  department personnel;
                     (B)  private sector personnel; and
                     (C)  both department personnel and private sector
  personnel;
               (4)  an analysis of the dollar volume impact to the
  department's highway and bridge construction and maintenance
  program per $100 million of projects awarded for each one percent
  increase in production by private sector personnel offset by a
  reduction in the activities of department personnel, considering
  the cost to perform activities described by Subdivision (3);
               (5)  a recommended plan for staffing and usage of
  department and private sector personnel in the planning of
  department highway and bridge projects for the next 10-year period
  based on projected funding for the department;
               (6)  an attrition plan to achieve the department
  staffing levels recommended in the plan under Subdivision (5)
  before January 1, 2013, if those recommended levels are lower than
  the corresponding staffing levels on September 1, 2009; and
               (7)  a detailed description as to how the results of the
  report will be incorporated in the department's ongoing
  restructuring efforts.
         (c)  The cost analysis required by Subsection (b)(3) shall be
  conducted by an independent contract cost accounting firm that is
  knowledgeable of governmental and private sector accounting
  practices.
         (d)  The department may not hire a new employee to fill a
  vacancy in a position paid out of funds appropriated to the
  department for the planning, design, and management of
  transportation projects in the General Appropriations Act
  (Strategy A.1.1., or its successor) until:
               (1)  the comptroller submits the report required by
  this section; and
               (2)  the Legislative Budget Board approves the
  recommendations contained in the report.
         (e)  This section expires September 1, 2011.
         SECTION 1.19.  Subchapter F, Chapter 224, Transportation
  Code, is amended by adding Section 224.1544 to read as follows:
         Sec. 224.1544.  VEHICLE SIZE AND WEIGHT LIMITS.  (a)  The
  commission may authorize the operation of a vehicle or combination
  that exceeds a height, length, or gross weight limitation in
  Subchapter C, Chapter 621, on a lane of a highway that is designated
  as an exclusive lane under Section 224.1541 if supported by an
  engineering and traffic study that includes an analysis of the
  structural capacity of bridges and pavements, current and projected
  traffic patterns and volume, and potential effects on public
  safety.
         (b)  This section does not authorize the operation of a
  vehicle with an axle weight that is greater than that authorized by
  Chapter 621, 622, or 623.
         SECTION 1.20.  Section 228.001, Transportation Code, is
  amended by adding Subdivisions (2-a) and (7) to read as follows:
               (2-a)  "Operate" and "operation" include the
  processing and collecting of tolls and the providing of related
  customer services.
               (7)  "Registered owner" means:
                     (A)  an owner as defined by Section 502.001; or
                     (B)  the owner of a vehicle as shown on the vehicle
  registration records of the department or the analogous department
  or agency of another state or country.
         SECTION 1.21.  (a) Section 228.004, Transportation Code, is
  amended to read as follows:
         Sec. 228.004.  [PROMOTION OF] TOLL PROJECT INFORMATION.
  (a)  The department may, notwithstanding Chapter 2113, Government
  Code, engage in marketing, advertising, and other activities to
  provide information relating to pending or operating [promote the
  development and use of] toll projects, including information
  concerning the methods of paying and collecting tolls, and may
  enter into contracts or agreements necessary to procure marketing,
  advertising, or informational [other promotional] services from
  outside service providers.
         (b)  This section does not authorize the department to engage
  in marketing, advertising, or other activities for the purpose of
  influencing public opinion about the use of toll roads or the use of
  tolls as a financial mechanism.
         (b)  The change in law made by this section applies only to a
  contract or agreement entered into or renewed under Section
  228.004, Transportation Code, on or after the effective date of
  this Act. A contract or agreement entered into or renewed under
  that section before the effective date of this Act is governed by
  the law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 1.22.  Subsection (a), Section 228.054,
  Transportation Code, is amended to read as follows:
         (a)  Except as provided by Subsection (e) or Section
  228.0545, the operator of a vehicle, other than an authorized
  emergency vehicle, as defined by Section 541.201, that is driven or
  towed through a toll collection facility shall pay the proper toll.
  The exemption from payment of a toll for an authorized emergency
  vehicle applies regardless of whether the vehicle is:
               (1)  responding to an emergency;
               (2)  displaying a flashing light; or
               (3)  marked as an emergency vehicle.
         SECTION 1.23.  Subchapter B, Chapter 228, Transportation
  Code, is amended by adding Section 228.0545 to read as follows:
         Sec. 228.0545.  ALTERNATIVE TOLLING METHODS. (a) As an
  alternative to requiring payment of a toll at the time a vehicle is
  driven or towed through a toll collection facility, the department
  may use video billing or other tolling methods to permit the
  registered owner of the vehicle to pay the toll on a later date.
         (b)  The department may use automated enforcement technology
  authorized by Section 228.058 to identify the registered owner of
  the vehicle for purposes of billing, collection, and enforcement
  activities.
         (c)  The department shall send by first class mail to the
  registered owner of the vehicle a written notice of the total amount
  due. The notice must specify the date, which may not be earlier
  than the 15th day after the date the notice is mailed, by which the
  amount due must be paid. The registered owner shall pay the amount
  due on or before the date specified in the notice.
         (d)  The department shall send the notice required by
  Subsection (c) and subsequent notices to:
               (1)  the registered owner's address as shown in the
  vehicle registration records of the department; or
               (2)  an alternate address provided by the owner or
  derived through other reliable means.
         (e)  On or before October 1 of each year, the department
  shall conduct a cost analysis to determine a policy on whether to
  mail a notice under Subsection (c) after each time a vehicle is
  driven or towed through a toll collection facility or only after a
  certain number of times a vehicle is driven or towed through a
  facility. The policy must ensure that the cost to the department of
  collecting tolls as provided by this section does not exceed the
  amount of the tolls and fees collected.
         SECTION 1.24.  Section 228.055, Transportation Code, is
  amended by amending Subsections (a), (b), (d), (e), (h), and (i),
  and adding Subsection (d-1) to read as follows:
         (a)  In the event of nonpayment of the [proper] toll as
  required by Section 228.054 or 228.0545, on issuance of a written
  notice of nonpayment, the registered owner of the nonpaying vehicle
  is liable for the payment of both the proper toll and an
  administrative fee.
         (b)  The department may impose and collect the
  administrative fee, so as to recover the cost of collecting the
  unpaid toll, not to exceed $100. The department shall send a
  written notice of nonpayment to the registered owner of the vehicle
  at that owner's address as shown in the vehicle registration
  records of the department or an alternate address provided by the
  owner or derived through other reliable means. The notice of
  nonpayment shall be sent by first class mail not later than the 30th
  day after the date of the alleged failure to pay and may require
  payment not sooner than the 30th day after the date the notice was
  mailed. The registered owner shall pay a separate toll and
  administrative fee for each event of nonpayment under Section
  228.054 or 228.0545.
         (d)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the department:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Section 228.054 or the date the vehicle was driven or towed through
  a toll collection facility that results in a notice issued under
  Section 228.0545, with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, in a format agreed on by the
  department and the lessor, other than a photocopy or scan of a
  rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Section 228.054 or the date the
  vehicle was driven or towed through a toll collection facility that
  results in a notice issued under Section 228.0545.
         (d-1)  If the lessor provides the required information
  within the period prescribed under Subsection (d), the department
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (d) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee of the vehicle
  for which the proper toll was not paid who is mailed a written
  notice of nonpayment under this subsection and fails to pay the
  proper toll and administrative fee within the time specified by the
  notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative fee for each event of nonpayment.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         (e)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle transferred ownership
  of the vehicle to another person before the event of nonpayment
  under Section 228.054 occurred or before the date the vehicle was
  driven or towed through a toll collection facility that results in a
  notice issued under Section 228.0545, submitted written notice of
  the transfer to the department in accordance with Section 520.023,
  and, before the 30th day after the date the notice of nonpayment is
  mailed, provides to the department the name and address of the
  person to whom the vehicle was transferred. If the former owner of
  the vehicle provides the required information within the period
  prescribed, the department may send a notice of nonpayment to the
  person to whom ownership of the vehicle was transferred at the
  address provided by the former owner by first class mail before the
  30th day after the date of receipt of the required information from
  the former owner. The department may send all subsequent notices of
  nonpayment associated with the vehicle to the person to whom
  ownership of the vehicle was transferred at the address provided by
  the former owner or an alternate address provided by the subsequent
  owner or derived through other reliable means. The subsequent
  owner of the vehicle for which the proper toll was not paid who is
  mailed a written notice of nonpayment under this subsection and
  fails to pay the proper toll and administrative fee within the time
  specified by the notice of nonpayment commits an offense. The
  subsequent owner shall pay a separate toll and administrative fee
  for each event of nonpayment under Section 228.054 or 228.0545.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         (h)  [In this section, "registered owner" means the owner of
  a vehicle as shown on the vehicle registration records of the
  department or the analogous department or agency of another state
  or country.
         [(i)]  The department may contract, in accordance with
  Section 2107.003, Government Code, with a person to collect the
  unpaid toll and administrative fee before referring the matter to a
  court with jurisdiction over the offense.
         SECTION 1.25.  Subsections (b) and (c), Section 228.056,
  Transportation Code, are amended to read as follows:
         (b)  In the prosecution of an offense under Section
  228.055(c), (d-1) [(d)], or (e):
               (1)  it is presumed that the notice of nonpayment was
  received on the fifth day after the date of mailing;
               (2)  a computer record of the department of the
  registered owner of the vehicle is prima facie evidence of its
  contents and that the defendant was the registered owner of the
  vehicle when the underlying event of nonpayment under Section
  228.054 occurred or on the date the vehicle was driven or towed
  through a toll collection facility that results in a notice issued
  under Section 228.0545; and
               (3)  a copy of the rental, lease, or other contract
  document, or the electronic data provided to the department under
  Section 228.055(d), covering the vehicle on the date of the
  underlying event of nonpayment under Section 228.054 or on the date
  the vehicle was driven or towed through a toll collection facility
  that results in a notice issued under Section 228.0545 is prima
  facie evidence of its contents and that the defendant was the lessee
  of the vehicle when the underlying event of nonpayment under
  Section 228.054 occurred or when the vehicle was driven or towed
  through a toll collection facility that results in a notice issued
  under Section 228.0545.
         (c)  It is a defense to prosecution under Section 228.055(c),
  (d-1) [(d)], or (e) that the motor vehicle in question was stolen
  before the failure to pay the proper toll occurred and had not been
  recovered before the failure to pay occurred, but only if the theft
  was reported to the appropriate law enforcement authority before
  the earlier of:
               (1)  the occurrence of the failure to pay; or
               (2)  eight hours after the discovery of the theft.
         SECTION 1.26.  Section 228.057, Transportation Code, is
  amended by adding Subsections (g) and (h) to read as follows:
         (g)  The department may, following closure of an electronic
  toll collection customer account and at the request of the account
  holder, refund the balance of funds in the account after making a
  deduction for any outstanding tolls and fees.
         (h)  The department may enter into an agreement with a
  governmental or private entity regarding the use of a transponder
  issued by the department and the corresponding electronic toll
  collection customer account to pay for parking services offered by
  the entity.
         SECTION 1.27.  Subsection (b), Section 228.058,
  Transportation Code, is amended to read as follows:
         (b)  Automated enforcement technology approved by the
  department under Subsection (a) may be used only for the purpose of
  producing, depicting, photographing, or recording an image that
  depicts that portion of a vehicle necessary to establish the
  classification of vehicle and the proper toll to be charged, the
  license plate number, and the state or country of registration,
  including an image:
               (1)  of a license plate attached to the front or rear of
  a vehicle; and
               (2)  showing the vehicle dimensions, the presence of a
  trailer, and the number of axles.
         SECTION 1.28.  (a) Section 228.201, Transportation Code, is
  amended by amending Subsection (a) and adding Subsection (a-1) to
  read as follows:
         (a)  The [Except as provided by Section 228.2015, the]
  department may not operate a nontolled state highway or a segment of
  a nontolled state highway as a toll project, and may not transfer a
  highway or segment to another entity for operation as a toll
  project, unless:
               (1)  the commission by order designated the highway or
  segment as a toll project before the contract to construct the
  highway or segment was awarded;
               (2)  the highway or segment was open to traffic as a
  turnpike project on or before September 1, 2005;
               (3)  the project was designated as a toll project in a
  plan or program of a metropolitan planning organization on or
  before September 1, 2005;
               (4)  the highway or segment is reconstructed so that
  the number of nontolled lanes on the highway or segment is greater
  than or equal to the number in existence before the reconstruction;
               (5)  a facility that has access, function, and control
  devices similar to the converted highway or segment before
  conversion is constructed adjacent to the highway or segment so
  that the number of nontolled lanes on the converted highway or
  segment and the adjacent facility together is greater than or equal
  to the number in existence on the converted highway or segment
  before the conversion; or
               (6)  subject to Subsection (b), the highway or segment
  was open to traffic as a high-occupancy vehicle lane on May 1,
  2005[; or
               [(7)     the commission converts the highway or segment to
  a toll facility by:
                     [(A)     making the determination required by
  Section 228.202;
                     [(B)     conducting the hearing required by Section
  228.203; and
                     [(C)     obtaining county and voter approval as
  required by Sections 228.207 and 228.208].
         (a-1)  Subsection (a) does not apply to a port of entry, as
  defined by Section 621.001.
         (b)  Sections 228.202, 228.203, 228.207, and 228.208,
  Transportation Code, are repealed.
         (c)  The change in law made by this Act to Section
  228.201(a)(5), Transportation Code, does not apply to:
               (1)  the State Highway 130, Segments 5 and 6, project in
  Travis, Caldwell, and Guadalupe Counties;
               (2)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of FM
  2499 to south of State Highway 360);
               (3)  the North Tarrant Express project in Tarrant and
  Dallas Counties (IH 820 and State Highway 121/State Highway 183
  from IH 35W to State Highway 161, IH 820 east from State Highway
  121/State Highway 183 to Randol Mill Road, and IH 35W from IH 30 to
  State Highway 170);
               (4)  the IH 635 managed lanes project in Dallas County
  (IH 635 from east of Luna Road to Greenville Avenue and IH 35E from
  south of the Loop 12/IH 35E split to south of Valwood Parkway); or
               (5)  the U.S. Highway 290 project from east of U.S.
  Highway 183 to east of Farm-to-Market Road 734 in Travis County.
         (d)  A project described by Subsection (c) of this section is
  governed by Subchapter E, Chapter 228, Transportation Code, as that
  subchapter existed immediately before the effective date of this
  Act, and that subchapter is continued in effect for that purpose.
         SECTION 1.29.  Section 284.0701, Transportation Code, is
  amended by amending Subsection (d) and adding Subsection (d-1) to
  read as follows:
         (d)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Section 284.070, with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Section 284.070.
         (d-1)  If the lessor provides the required information
  within the period prescribed under Subsection (d), the authority
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (d) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee of the vehicle
  for which the proper toll was not paid who is mailed a written
  notice of nonpayment under this subsection and fails to pay the
  proper toll and administrative cost within the time specified by
  the notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative cost for each event of nonpayment.
  Each failure to pay a toll or administrative cost under this
  subsection is a separate offense.
         SECTION 1.30.  Sections 284.0702(b) and (c), Transportation
  Code, are amended to read as follows:
         (b)  In the prosecution of an offense under Section
  284.0701(c), (d-1) [(d)], or (e):
               (1)[,]  a computer record of the department of the
  registered owner of the vehicle is prima facie evidence of its
  contents and that the defendant was the registered owner of the
  vehicle when the underlying event of nonpayment under Section
  284.070 occurred; and
               (2)  a copy of the rental, lease, or other contract
  document, or the electronic data provided to the authority under
  Section 284.0701(d), covering the vehicle on the date of the
  underlying event of nonpayment under Section 284.070 is prima facie
  evidence of its contents and that the defendant was the lessee of
  the vehicle when the underlying event of nonpayment under Section
  284.070 occurred.
         (c)  It is a defense to prosecution under Section
  284.0701(c), (d-1) [(d)], or (e) that the vehicle in question was
  stolen before the failure to pay the proper toll occurred and had
  not been recovered before the failure to pay occurred, but only if
  the theft was reported to the appropriate law enforcement authority
  before the earlier of:
               (1)  the occurrence of the failure to pay; or
               (2)  eight hours after the discovery of the theft.
         SECTION 1.31.  Section 366.178, Transportation Code, is
  amended by amending Subsections (f) and (i) and adding Subsection
  (i-1) to read as follows:
         (f)  In the prosecution of a violation for nonpayment, proof
  that the vehicle passed through a toll collection facility without
  payment of the proper toll together with proof that the defendant
  was the registered owner or the driver of the vehicle when the
  failure to pay occurred, establishes the nonpayment of the
  registered owner. The proof may be by testimony of a peace officer
  or authority employee, video surveillance, or any other reasonable
  evidence, including a copy of the rental, lease, or other contract
  document or the electronic data provided to the authority under
  Subsection (i) that shows the defendant was the lessee of the
  vehicle when the underlying event of nonpayment occurred.
         (i)  A registered owner who is the lessor of a vehicle for
  which a notice of nonpayment has been issued is not liable if, not
  later than the 30th day after the date the notice of nonpayment is
  mailed, the registered owner provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document [lease agreement] covering the vehicle on the date of the
  nonpayment, with the[. The] name and address of the lessee [must
  be] clearly legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under this section.
         (i-1)  If the lessor timely provides the required
  information under Subsection (i), the lessee of the vehicle on the
  date of the violation is considered to be the owner of the vehicle
  for purposes of this section. The lessee is subject to prosecution
  for failure to pay the proper toll if the authority sends a notice
  of nonpayment to the lessee by first-class mail not later than the
  30th day after the date of the receipt of the information from the
  lessor.
         SECTION 1.32.  Section 370.177, Transportation Code, is
  amended by amending Subsections (e), (g), and (i) and adding
  Subsection (e-1) to read as follows:
         (e)  It is an exception to the application of Subsection (b)
  or (d) that the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Subsection (a), with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Subsection (a).
         (e-1)  If the lessor provides the required information
  within the period prescribed under Subsection (e), the authority
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (e) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee of the vehicle
  for which the proper toll was not paid who is mailed a written
  notice of nonpayment under this subsection and fails to pay the
  proper toll and administrative fee within the time specified by the
  notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative fee for each event of nonpayment.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         (g)  An offense under Subsection (d), (e-1) [(e)], or (f) is
  a misdemeanor punishable by a fine not to exceed $250.
         (i)  In the prosecution of an offense under this section,
  proof that the vehicle passed through a toll collection facility
  without payment of the proper toll together with proof that the
  defendant was the registered owner or the driver of the vehicle when
  the failure to pay occurred, establishes the nonpayment of the
  registered owner. The proof may be by testimony of a peace officer
  or authority employee, video surveillance, or any other reasonable
  evidence, including:
               (1)  evidence obtained by automated enforcement
  technology that the authority determines is necessary, including
  automated enforcement technology described by Sections 228.058(a)
  and (b); or
               (2)  a copy of the rental, lease, or other contract
  document or the electronic data provided to the authority under
  Subsection (e) that shows the defendant was the lessee of the
  vehicle when the underlying event of nonpayment occurred.
         SECTION 1.33.  Subchapter A, Chapter 621, Transportation
  Code, is amended by adding Section 621.008 to read as follows:
         Sec. 621.008.  STUDY REGARDING OVERSIZE AND OVERWEIGHT
  VEHICLES. (a) The department shall conduct a study to determine
  improvements to the regulation of oversize and overweight vehicles.
         (b)  In conducting the study, the department shall consider:
               (1)  prohibiting overweight vehicles or vehicle
  combinations from traveling on state highways if the vehicle or
  combination will cause damage to a road or bridge, based on the
  weight or load specifications to which the road or bridge was built;
               (2)  requiring each applicant for a permit under
  Chapter 623 to pay a graduated highway maintenance fee based on
  weight and the amount of damage done by the permitted vehicle or
  vehicle combination to roads and bridges;
               (3)  requiring each fee collected for an overweight or
  oversize vehicle permit to be deposited in the state highway fund;
  and
               (4)  eliminating all exemptions for overweight
  vehicles.
         (c)  Not later than September 1, 2010, the department shall
  report the results of the study conducted under this section to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the appropriate oversight committee of each
  house of the legislature.
         (d)  This section expires September 1, 2011.
         SECTION 1.34.  Section 201.0545, Transportation Code, is
  repealed.
         SECTION 1.35.  Section 545.353, Transportation Code, is
  amended by adding Subsection (h-2) to read as follows:
         (h-2)  Notwithstanding Section 545.352(b), the commission
  may establish a speed limit of 85 miles per hour on a part of the
  state highway system if:
               (1)  as a result of an engineering and traffic
  investigation the commission determines that 85 miles per hour is a
  reasonable and safe speed for that part of the highway system; and
               (2)  that part of the highway system is designed for
  travel at a speed of 85 miles per hour or more.
         SECTION 1.36.  (a) The terms of the members of the Texas
  Transportation Commission serving on January 31, 2010, expire
  February 1, 2011.
         (b)  Not later than January 31, 2011, the governor shall
  appoint the members of the Texas Transportation Commission in
  accordance with Section 201.051(a), Transportation Code, as
  amended by this article, to serve terms beginning February 1, 2011.
  ARTICLE 2. TRANSPORTATION PLANNING AND PROJECT DEVELOPMENT PROCESS
         SECTION 2.01.  Section 201.001(a), Transportation Code, is
  amended by adding Subdivision (4) to read as follows:
               (4)  "Metropolitan planning organization" has the
  meaning assigned by Section 472.031, Transportation Code.
         SECTION 2.02.  Section 201.601, Transportation Code, is
  amended to read as follows:
         Sec. 201.601.  STATEWIDE TRANSPORTATION PLAN. (a) The
  department shall develop a statewide transportation plan covering a
  period of not less than 25 years that contains all modes of
  transportation, including:
               (1)  highways and turnpikes;
               (2)  aviation;
               (3)  mass transportation;
               (4)  railroads and high-speed railroads; and
               (5)  water traffic.
         (a-1)  The plan must:
               (1)  contain specific, long-term transportation goals
  for the state and measurable targets for each goal;
               (2)  identify priority corridors, projects, or areas of
  the state that are of particular concern to the department in
  meeting the goals established under Subdivision (1); and
               (3)  contain a participation plan for obtaining input
  on the goals and priorities identified under this subsection from:
                     (A)  other state agencies;
                     (B)  political subdivisions;
                     (C)  planning organizations as defined in Section
  201.981(2); and
                     (D)  members of the general public.
         (b)  [In developing the plan, the department shall seek
  opinions and assistance from other state agencies and political
  subdivisions that have responsibility for the modes of
  transportation listed by Subsection (a).] As appropriate, the
  department and one or more of the entities listed in Subsection
  (a-1)(3) [such an agency or political subdivision] shall enter into
  a memorandum of understanding relating to the planning of
  transportation services.
         (c)  The plan must include a component that is not
  financially constrained and identifies transportation improvements
  designed to relieve congestion. In developing this component of
  the plan, the department shall seek opinions and assistance from
  officials who have local responsibility for modes of transportation
  listed in Subsection (a).
         (d)  If there is a conflict between obligations and
  requirements imposed in federal law governing the transportation
  planning, project development, and programming process for the
  department and planning organizations as defined in Section
  201.981(2), and those imposed in this title, federal law controls
  and the commission may take any action that is necessary in its
  reasonable judgment to comply with any federal law to enable this
  state to receive federal aid funds.
         (e)  The department shall update the plan every five years or
  more frequently as necessary. [The plan shall include a component,
  published annually, that describes the evaluation of
  transportation improvements based on performance measures, such as
  indices measuring delay reductions or travel time improvements.
  The department shall consider the performance measures in selecting
  transportation improvements.]
         SECTION 2.03.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Sections 201.6012, 201.6015, 201.621,
  201.622, and 201.623 to read as follows:
         Sec. 201.6012.  INTEGRATION OF PLANS AND POLICY EFFORTS. In
  developing each of its transportation plans and policy efforts, the
  department must clearly reference the 25-year plan developed under
  Section 201.601 and specify how the plan or policy effort supports
  or otherwise relates to the specific goals contained in that plan.
         Sec. 201.6015.  DELEGATION OF DUTIES OR POWERS TO
  METROPOLITAN PLANNING ORGANIZATION. A metropolitan planning
  organization may agree to accept additional responsibilities
  delegated by the commission concerning transportation planning and
  project selection.
         Sec. 201.621.  METROPOLITAN TRANSPORTATION PLAN. (a) A
  metropolitan planning organization shall prepare and periodically
  update a long-range transportation plan for its service area as
  required by federal law.
         (b)  The first 10 years of the long-range plan must be
  identical to the plan developed under Section 201.983.
         (c)  Before approving a long-range transportation plan, a
  metropolitan planning organization shall provide to residents in
  its boundaries, affected public agencies, and other interested
  parties a reasonable opportunity to comment on the long-range
  transportation plan.
         (d)  A metropolitan planning organization shall make each of
  its long-range transportation plans readily available for public
  review and shall deliver each plan to the commission at the times
  and in the manner and format established by the commission. The
  format of the plan must be in plain English and easily reviewable
  and understandable. The metropolitan planning organization shall
  update the plan every year or more frequently as necessary.
         Sec. 201.622.  COOPERATION WITH METROPOLITAN PLANNING
  ORGANIZATIONS TO DEVELOP LONG-TERM PLANNING ASSUMPTIONS. The
  department and metropolitan planning organizations shall cooperate
  to develop mutually acceptable assumptions for the purposes of
  long-range federal and state funding forecasts that are consistent
  with the criteria established by the commission under Section
  201.987 and use those criteria to guide long-range planning.
         Sec. 201.623.  RECOMMENDATIONS FROM RURAL PLANNING
  ORGANIZATION. A rural planning organization may make
  recommendations to the commission concerning the selection of
  transportation projects, systems, or programs to be undertaken in
  the boundaries of the rural planning organization.
         SECTION 2.04.  Section 201.617(a), Transportation Code, as
  transferred by Chapter 281 (H.B. 2702), Acts of the 79th
  Legislature, Regular Session, 2005, is amended to read as follows:
         (a)  If authorized by an applicable regulatory authority, to
  mitigate an adverse environmental impact that is a direct result of
  the construction, improvement, or maintenance of a state highway or
  the construction, improvement, or maintenance of a facility used in
  connection with the construction, maintenance, or operation of a
  state highway improvement project, the department may:
               (1)  pay a fee to an appropriate public agency or
  private entity in lieu of acquiring or agreeing to manage property;
               (2)  transfer any interest in real property to an
  appropriate public agency or private entity, as authorized by the
  regulatory authority that requires the mitigation, with or without
  monetary consideration if the property is used or is proposed to be
  used for mitigation purposes; or
               (3)  contract with any public or private entity for the
  management of property owned by the department and used for
  mitigation purposes.
         SECTION 2.05.  Subchapter I, Chapter 201, Transportation
  Code, is amended by adding Sections 201.711 and 201.712 to read as
  follows:
         Sec. 201.711.  ELIGIBILITY FOR STATE ALLOCATION OF FUNDING;
  BOARD MEMBERSHIP. (a) To be eligible to receive funds from this
  state for transportation projects under Section 201.988, not more
  than 50 percent of the voting members of the policy board of a
  metropolitan planning organization must be elected officials who
  are elected in the boundaries of the metropolitan planning
  organization.
         (b)  A metropolitan planning organization that is not
  eligible under Subsection (a) may redesignate the board in
  compliance with the redesignation procedures in 23 U.S.C. Section
  134 to become eligible to receive an allocation of funds under
  Section 201.988.
         (c)  In this section, "elected official" means the presiding
  officer or a member of the governing body of a municipality, a
  county judge, a county commissioner, a state representative, or a
  state senator.
         Sec. 201.712.  FUNDS FOR RURAL PLANNING ORGANIZATION. The
  department may use money in the state highway fund to fund the
  operations of a rural planning organization.
         SECTION 2.06.  (a) Subchapter J, Chapter 201,
  Transportation Code, is amended by adding Sections 201.8005,
  201.807, 201.808, 201.809, 201.810, and 201.811 to read as follows:
         Sec. 201.8005.  DEFINITION. In this subchapter,
  "transportation project" has the meaning assigned by Section
  201.981.
         Sec. 201.807.  PROJECT INFORMATION REPORTING SYSTEM. (a)
  The department shall establish a project information reporting
  system that makes available in a central location on the
  department's Internet website information regarding all of the
  department's transportation projects contained in the project
  development program required by Section 201.982 or under
  construction. The information must be easily accessible,
  understandable, and searchable. The project information reporting
  system must contain:
               (1)  information about each of the department's
  transportation projects included in the project development
  program, including:
                     (A)  the status of the project;
                     (B)  each source of funding for the project;
                     (C)  benchmarks for evaluating the progress of the
  project;
                     (D)  timelines for completing the project;
                     (E)  a list of the department employees
  responsible for the project, including information as to how each
  person on that list may be contacted; and
                     (F)  the results of the annual review required by
  Subsection (d);
               (2)  a representational color-coded map showing the
  location of the transportation projects and containing the
  information described by Subdivision (1);
               (3)  each construction work zone for a transportation
  project under construction that has a total construction timeline
  that exceeds six months or the cost of which exceeds $5 million,
  including information about:
                     (A)  the number of lanes that will remain open
  during the project's construction phase;
                     (B)  the location and duration of each lane
  closure; and
                     (C)  the expected traffic delay resulting from
  each lane closure;
               (4)  road maintenance transportation projects that are
  planned or under construction, including the condition of each road
  before the road maintenance transportation project; and
               (5)  each fund source for the department's funds and all
  expenditures made by the department, for each of the department's
  transportation projects, reported by:
                     (A)  department district;
                     (B)  program funding category as required by
  Section 201.982(b)(2); and
                     (C)  type of revenue, including revenue from a
  comprehensive development agreement or a toll project.
         (b)  In developing the project information reporting system,
  the department shall collaborate with:
               (1)  the Transportation Legislative Oversight
  Committee;
               (2)  local transportation entities as defined by
  Section 201.981; and
               (3)  members of the general public.
         (c)  The department shall make the statistical information
  provided under this section available on the department's Internet
  website in more than one downloadable electronic format.
         (d)  As a component of the project information reporting
  system required by this section, the department shall conduct an
  annual review of the benchmarks and timelines of each
  transportation project included in the department's project
  development program, to determine the completion rates of the
  projects and whether the projects were completed on time.
         (e)  The department shall update the information contained
  in the project information reporting system at least quarterly and
  the representational map at least annually.
         Sec. 201.808.  TRANSPORTATION PROJECT AND PERFORMANCE
  REPORTS. (a) The department shall develop a process to identify
  and distinguish between the transportation projects that are
  required to maintain the state infrastructure and the
  transportation projects that would improve the state
  infrastructure in a manner consistent with the statewide
  transportation plan required by Section 201.601.
         (b)  The department shall establish a transportation project
  and performance reporting system that makes available in a central
  location on the department's Internet website easily accessible and
  searchable information regarding the priority classifications
  established under Section 201.986 and the assignment of the
  identified transportation projects in the classifications.
         (c)  The department shall include in the transportation
  project and performance reporting system:
               (1)  a list of the most significant transportation
  problems in each department district as described by the statewide
  transportation plan developed under Section 201.601, including the
  component required by Section 201.601(c);
               (2)  reports prepared by the department or an
  institution of higher education that evaluate the effectiveness of
  the department's expenditures on transportation projects to
  achieve the transportation goals;
               (3)  information about the condition of the pavement
  for each segment of the state highway system, including:
                     (A)  the international roughness index issued by
  the United States Department of Transportation Federal Highway
  Administration; and
                     (B)  the percentage of pavement that the
  department determines to be in good or better condition;
               (4)  the condition of bridges, including information
  about:
                     (A)  the number of on-system and off-system
  bridges that are structurally deficient or functionally obsolete;
  and
                     (B)  the percentage of bridges that the department
  determines to be in good or better condition;
               (5)  information about traffic congestion and traffic
  delays, including:
                     (A)  the locations of the worst metropolitan
  traffic delays;
                     (B)  the variable travel time for major freeways
  and highways in the metropolitan areas of this state; and
                     (C)  the effect of traffic congestion on motor
  vehicle travel and motor carriers; and
               (6)  information about the number of traffic accidents,
  injuries, and fatalities, including the geographic locations in
  each department district for the highest number of traffic
  accidents, injuries, or fatalities.
         (d)  The department shall provide the information made
  available under Subsection (c) in a format that allows a person to
  conduct electronic searches for information about a specific
  county, a highway under the jurisdiction of the department, or a
  type of road.
         (e)  Each department district shall enter information into
  the transportation project and performance reporting system,
  including information about:
               (1)  each district transportation project; and
               (2)  the priority classification to which the project
  has been assigned according to Section 201.986.
         (f)  The transportation project and performance reporting
  system must allow a person to compare information produced by that
  system to information produced by the project information reporting
  system under Section 201.807.
         (g)  The department shall make available in a central
  location on the department's Internet website information
  regarding each fund source for the department's funds and all
  expenditures made by the department, reported by:
               (1)  department district;
               (2)  program funding category; and
               (3)  type of revenue, including revenue from a
  comprehensive development agreement or a toll project.
         Sec. 201.809.  STATEWIDE TRANSPORTATION REPORT. (a) The
  department annually shall evaluate and publish a report about the
  status of each transportation goal for this state. The report must
  include:
               (1)  information about the progress of each long-term
  transportation goal that is identified by the statewide
  transportation plan;
               (2)  the status of each project identified as a major
  project under Section 201.985;
               (3)  a summary of the number of statewide project
  implementation benchmarks that have been completed; and
               (4)  information about the accuracy of previous
  department financial forecasts.
         (b)  The department shall disaggregate the project
  information in the report by department district.
         (c)  The department shall make available a copy of the
  reports for department districts in a legislative district to each
  member of the legislature, and at the request of a member, a senior
  management employee shall meet with the member to explain the
  report.
         (d)  The department shall provide a copy of each district
  report to the political subdivisions located in the department
  district that is the subject of the report, including:
               (1)  a municipality;
               (2)  a county; and
               (3)  a local transportation entity as defined by
  Section 201.981.
         (e)  The department shall provide a copy of the complete
  report to the lieutenant governor, the speaker of the house of
  representatives, and the chair of the standing committee of each
  house of the legislature with primary jurisdiction over
  transportation issues.
         Sec. 201.810.  SEPARATE SUBACCOUNT REPORTING. (a) The
  department shall develop an account information reporting system
  that makes available on the department's Internet website for
  viewing and downloading by interested persons the tracking of each
  separate subaccount in the state highway fund required by law,
  including Chapter 228. The account information must include:
               (1)  the source and amount of the deposited funds and
  the date of deposit;
               (2)  identification by location and highway
  designation of the projects or systems to which the funds are
  allocated; and
               (3)  the amount, general type or purpose, and date of
  expenditures from the account.
         (b)  The department shall update the account information
  reporting system at least quarterly.
         Sec. 201.811.  DEPARTMENT INFORMATION CONSOLIDATION. (a)
  To the extent practicable and to avoid duplication of reporting
  requirements, the department may combine the reports required under
  this subchapter with reports required under other provisions of
  this code.
         (b)  The department shall develop a central location on the
  department's Internet website that provides easily accessible and
  searchable information to the public contained in the reports
  required under this subchapter and other provisions of this code.
         (b)  Not later than September 1, 2009, the Texas Department
  of Transportation shall establish the central location on the
  department's Internet website required by Sections 201.807 and
  201.808, Transportation Code, as added by this section.
         SECTION 2.07.  Chapter 201, Transportation Code, is amended
  by adding Subchapter P to read as follows:
  SUBCHAPTER P. PROJECT DEVELOPMENT PROGRAM
         Sec. 201.981.  DEFINITIONS. In this subchapter:
               (1)  "Local transportation entity" means an entity that
  participates in the transportation planning process. The term
  includes:
                     (A)  a metropolitan planning organization;
                     (B)  a rural planning organization;
                     (C)  a regional tollway authority organized under
  Chapter 366;
                     (D)  a regional transportation authority
  operating under Chapter 452;
                     (E)  a rural transit district as defined by
  Section 458.001;
                     (F)  a coordinated county transportation
  authority operating under Chapter 460; and
                     (G)  a regional mobility authority operating
  under Chapter 370.
               (2)  "Planning organization" means:
                     (A)  a metropolitan planning organization;
                     (B)  a rural planning organization; or
                     (C)  for an area that is not in the boundaries of a
  metropolitan planning organization or a rural planning
  organization, the department district.
               (3)  "Transportation project" means the planning,
  right-of-way acquisition, expansion, improvement, addition, or
  contract maintenance, other than the routine or contracted routine
  maintenance, of:
                     (A)  a bridge;
                     (B)  a highway;
                     (C)  a toll road or toll road system;
                     (D)  a railroad;
                     (E)  an enhancement of a roadway that increases
  the safety of the traveling public;
                     (F)  an air quality improvement initiative; or
                     (G)  a transportation enhancement activity under
  23 U.S.C. Section 133.
         Sec. 201.982.  PROJECT DEVELOPMENT PROGRAM. (a) The
  department shall develop a project development program that covers
  a period of 10 years to guide the development of and authorize
  construction of transportation projects. The program must:
               (1)  estimate funding levels for each year; and
               (2)  list all projects and programs that the department
  intends to develop or begin construction of during the program
  period.
         (b)  The commission by rule shall:
               (1)  specify the criteria for selecting projects to be
  included in the program as provided in Section 201.987;
               (2)  define program funding categories, including
  categories for safety, bridge, maintenance, and mobility; and
               (3)  define each phase of a major transportation
  project, including the planning, design, and construction phases.
         (c)  The department shall publish the entire project
  development program and summary documents highlighting project
  benchmarks, priorities, and forecasts in appropriate media and on
  the department's Internet website.
         (d)  In developing the rules required by this section, the
  commission shall cooperate with local transportation entities.
         Sec. 201.9825.  ANNUAL UPDATE TO PROJECT DEVELOPMENT
  PROGRAM. (a) The department shall annually update the project
  development program.
         (b)  The annual update must include:
               (1)  the annual funding forecast required by Section
  201.984;
               (2)  the list of major transportation projects required
  by Section 201.985(b); and
               (3)  the projects included in each program priority
  classification established by Section 201.986.
         (c)  The department shall collaborate with local
  transportation entities to develop the annual update to the project
  development program.
         Sec. 201.983.  PLANNING ORGANIZATION 10-YEAR PLAN. (a)
  Each planning organization shall develop a 10-year transportation
  plan that is consistent with the criteria and definitions adopted
  by the commission under Section 201.982.
         (b)  The first four years of the plan shall be developed so as
  to comply with the transportation improvement plan requirements of
  federal law.
         (c)  In developing the statewide transportation improvement
  plan in accordance with federal law, the department shall:
               (1)  compile the metropolitan planning organizations'
  project selections; and
               (2)  collaborate with the rural planning
  organizations.
         (d)  The department shall develop the statewide
  transportation improvement plan in accordance with federal law.
         Sec. 201.9835.  PROJECT PRIORITIZATION BY PLANNING
  ORGANIZATIONS. (a) Each metropolitan planning organization shall,
  for the area in its boundaries, develop a prioritized list of
  transportation projects that is consistent with the criteria
  established by the commission under Section 201.987. Projects that
  are not considered by the department and the planning organization
  to be of an appropriate scale for individual identification in a
  given program year may be grouped by function, geographic area, or
  work type.
         (b)  The department shall, with input from a rural planning
  organization, develop a prioritized list of transportation
  projects for the area in that rural planning organization's
  boundaries and submit the projects to the commission for final
  approval.
         (c)  For an area not located in the boundaries of a planning
  organization, the applicable department district shall:
               (1)  develop a prioritized list of transportation
  projects with input from municipal and county officials and
  officials of local transportation entities; and
               (2)  submit the transportation projects to the
  commission for final approval.
         Sec. 201.984.  ANNUAL FUNDING AND CASH FLOW FORECASTS. (a)
  The department annually shall:
               (1)  develop and publish a forecast of all funds the
  department expects to receive, including funds from this state and
  the federal government; and
               (2)  use that forecast to guide planning for the
  project development program.
         (b)  The department shall collaborate with local
  transportation entities to develop scenarios for the forecast
  required by Subsection (a) based on mutually acceptable funding
  assumptions.
         (c)  Not later than August 31 of each odd-numbered year, the
  department shall prepare and publish a cash flow forecast for the
  10-year period that begins on September 1 of that odd-numbered
  year.
         (d)  The department shall update the forecast more
  frequently as needed if significant changes in the department's
  funding occur.
         Sec. 201.985.  DESIGNATION AND INFORMATION ON CONSTRUCTION
  OF MAJOR TRANSPORTATION PROJECTS. (a) The commission by rule
  shall:
               (1)  establish criteria for designating a project as a
  major transportation project;
               (2)  develop benchmarks for evaluating the progress of
  a major transportation project and timelines for implementation and
  construction of a major transportation project; and
               (3)  determine which critical benchmarks must be met
  before a major transportation project may enter the implementation
  phase of the project development program.
         (b)  The department shall annually update the list of
  projects that are designated as major transportation projects.
         (c)  In adopting rules required by this section, the
  commission shall collaborate with local transportation entities.
         Sec. 201.986.  PROGRAM PRIORITY CLASSIFICATIONS. (a) The
  commission by rule shall establish classifications in the project
  development program to designate the priority of each project
  included in the program and shall assign each project a
  classification. The classifications must include high, medium, and
  low priority levels.
         (b)  The department shall collaborate with local
  transportation entities when assigning each project included in the
  project development program to a classification established under
  Subsection (a).
         (c)  In the selection of projects for implementation,
  priority shall be given to projects with the highest classification
  within each applicable program funding category described by
  Section 201.982(b)(2).
         Sec. 201.987.  PROJECT SELECTION. (a) The commission by
  rule shall establish criteria for selection by the department and
  each planning organization of projects to be included in the
  statewide transportation plan. The criteria must be based on the
  commission's transportation goals for the state and measurable
  targets for each goal.
         (b)  The department shall collaborate with planning
  organizations in the development of the criteria for selection of
  projects.
         (c)  The commission shall determine and approve the final
  selection of projects to be included in the statewide
  transportation plan.
         (d)  The commission shall consider the prioritized list of
  transportation projects developed by metropolitan planning
  organizations operating in areas that are a transportation
  management area, as defined by 23 U.S.C. Section 134(k), for
  projects funded as congestion mitigation and air quality
  improvement projects, and metropolitan mobility or rehabilitation
  projects, unless the commission determines that a particular
  project's inclusion on or omission from the project list conflicts
  with or is inconsistent with federal law or a rule adopted under
  Subsection (a).
         Sec. 201.988.  FUNDING ALLOCATION. (a) The commission by
  rule shall establish formulas for allocating funds in each category
  described by Section 201.982(b)(2).
         (b)  The commission shall update the formulas established
  under this section every five years or more frequently as
  necessary.
         Sec. 201.9882.  LIMITATION ON COMMISSION ALLOCATION OF
  FUNDS. (a) The commission or the department may not require that a
  toll project be included in a regional mobility plan as a condition
  for the allocation of funds for the construction of projects in the
  region.
         (b)  The commission or the department may not:
               (1)  revise the formula as provided in the department's
  project development program, or its successor document, in a manner
  that results in a decrease of a department district's allocation
  because of:
                     (A)  the failure of a region to include toll
  projects in a regional mobility plan; or
                     (B)  participation by a political subdivision in
  the funding of a transportation project in the region, including
  the use of money collected in a transportation reinvestment zone
  under Sections 222.106 and 222.107; or
               (2)  take any other action that would reduce funding
  allocated to a department district because of the failure of a
  region to include toll projects in a regional mobility plan.
         Sec. 201.9884.  FUND DISTRIBUTION. (a) The department
  shall allocate funds to the department districts based on the
  formulas adopted under Section 201.988.
         (b)  In distributing funds to department districts, the
  department may not exceed the cash flow forecast prepared and
  published under Section 201.984(c).
         Sec. 201.989.  DEPARTMENT FOUR-YEAR BUSINESS WORK PLAN. (a)
  Each department district shall develop a consistently formatted
  work plan for the following four years that is based on the project
  development program and contains all projects and project
  categories that the district plans to implement during that period.
         (b)  The work plan must contain for each project and project
  category:
               (1)  a project schedule with funding for each phase of
  development;
               (2)  a right-of-way acquisition plan;
               (3)  a letting plan; and
               (4)  a summary of the progress on the project and
  project category.
         (c)  The department shall use the work plan to:
               (1)  monitor the performance of the district; and
               (2)  evaluate the performance of district employees.
         (d)  The department shall consolidate the districts' work
  plans into a statewide work plan and publish it in appropriate media
  and on the department's Internet website.
         Sec. 201.9892.  PERFORMANCE MEASURES FOR WORK PLAN. (a) The
  department shall develop a set of performance measures for the plan
  under Section 201.989 intended to measure:
               (1)  the execution of the work program;
               (2)  the efficiency and cost-effectiveness of its
  business practices;
               (3)  the preservation of the system investment;
               (4)  the addition of new capacity to the system;
               (5)  safety initiatives; and
               (6)  use of minority, disadvantaged, and small
  businesses.
         (b)  At a minimum, the performance measures adopted under
  Subsection (a) must include:
               (1)  the percentage of projects for which environmental
  clearance is obtained on or before the planned implementation
  timelines;
               (2)  the percentage of projects for which right-of-way
  acquisition is completed on or before the planned implementation
  timelines;
               (3)  the total amount spent for right-of-way as a
  percentage of the original estimated amount;
               (4)  the percentage of highway improvement contracts
  executed on or before the planned implementation timelines for
  letting;
               (5)  for all highway improvement contracts completed
  during the state fiscal year, the percentage completed within 20
  percent of the original contract time;
               (6)  for all highway improvement contracts completed
  during the state fiscal year, the percentage completed within 10
  percent of the original contract price;
               (7)  for all highway improvement contracts completed
  during the state fiscal year, the percentage of the total contract
  adjustments as a percentage of the total original contract price;
               (8)  of the federal funds subject to forfeiture at the
  end of the state fiscal year, the percentage that was committed by
  the department;
               (9)  the amounts of cash receipts and disbursements in
  contrast with the forecasted amounts;
               (10)  the amount obligated to be spent in connection
  with contracts or participation in contracts with minority,
  disadvantaged, and small business enterprises as a percentage of
  the amount spent on all contracts;
               (11)  the peak hour travel congestion in the eight
  largest metropolitan areas in contrast with previous state fiscal
  years; and
               (12)  the number of vehicle miles traveled in contrast
  with previous state fiscal years.
         (c)  The department shall consult with the Transportation
  Legislative Oversight Committee in developing the performance
  measures under Subsection (a). This subsection expires August 31,
  2013.
         Sec. 201.9895.  PERFORMANCE REVIEW. Not later than December
  1 of each odd-numbered year, the commission shall review the
  performance of the department's activities described in Section
  201.989 and make the review available to the public. The review
  must include a report on the level of achievement of each
  performance measure listed in Section 201.9892(a), statewide and by
  department district, and a status report on each major
  transportation project under development.
         SECTION 2.08.  Subchapter A, Chapter 222, Transportation
  Code, is amended by adding Section 222.004 to read as follows:
         Sec. 222.004.  AUTHORIZATION TO PROVIDE ASSISTANCE TO
  EXPEDITE ENVIRONMENTAL REVIEW. (a) The department, a county, a
  regional tollway authority operating under Chapter 366, or a
  regional mobility authority operating under Chapter 370 may enter
  into an agreement to provide funds to a state or federal agency to
  expedite the agency's performance of its duties related to the
  environmental review process for transportation projects:
                     (1)  of the department;
                     (2)  listed in a metropolitan planning
  organization's long-range transportation plan under 23 U.S.C.
  Section 134; or
                     (3)  of a county, regional tollway authority
  operating under Chapter 366, or regional mobility authority
  operating under Chapter 370.
         (b)  Except as provided by Subsection (c), an agreement
  entered into under this section:
               (1)  may specify transportation projects the
  applicable entity considers to be priorities for review; and
               (2)  must require the agency receiving money to
  complete the environmental review in less time than is customary
  for the completion of an environmental review by that agency.
         (c)  The department may enter into a separate agreement for a
  transportation project that the department determines has regional
  importance.
         (d)  An agreement entered into under this section does not
  diminish or modify the rights of the public regarding review and
  comment on transportation projects.
         (e)  An entity entering into an agreement under this section
  shall make the agreement available on the entity's Internet
  website.
         SECTION 2.09.  (a) The Texas Transportation Commission
  shall adopt the rules required by this article as soon as
  practicable but not later than March 1, 2010.
         (b)  Each planning organization, as defined by Section
  201.981, Transportation Code, as added by this article, shall
  develop its first 10-year transportation plan in accordance with
  Section 201.983, Transportation Code, as added by this article, not
  later than March 1, 2011.
         (c)  The Texas Department of Transportation shall develop
  the programs and plans required under Subchapter P, Chapter 201,
  Transportation Code, as added by this article, as soon as
  practicable but not later than December 1, 2010.
         SECTION 2.10.  Subchapter D, Chapter 472, Transportation
  Code, is amended by adding Sections 472.0331 and 472.0332 to read as
  follows:
         Sec. 472.0331.  ORGANIZATION.  (a) The governor shall
  designate, in accordance with 23 U.S.C. Section 134, a metropolitan
  planning organization for each urbanized area of this state having
  a population of more than 50,000.
         (b)  The policy board of a metropolitan planning
  organization is the governing body of that organization. Not more
  than 50 percent of the number of the voting members of the policy
  board must be elected officials whose jurisdictions are wholly or
  partially in the boundaries of the metropolitan planning
  organization.
         (c)  A metropolitan planning organization is a governmental
  entity. The policy board is subject to Chapter 551, Government
  Code.
         Sec. 472.0332.  DUTIES. In addition to the requirements of
  federal law, a metropolitan planning organization shall perform the
  duties required by state law and those delegated by the commission
  under Subchapter H, Chapter 201.
         SECTION 2.11.  Subchapter D, Chapter 472, Transportation
  Code, is amended by adding Section 472.035 to read as follows:
         Sec. 472.035.  DUTIES. The duties of a metropolitan
  planning organization are to provide regional transportation
  forecasting and planning, set regional priorities, and make project
  selection decisions as provided by federal law and the commission.
  The organization shall not be involved in project development
  activities for individual projects, including environmental
  clearance, procurement, or management of the project design and
  construction process.
         SECTION 2.12.  (a) Chapter 472, Transportation Code, is
  amended by adding Subchapter E to read as follows:
  SUBCHAPTER E.  RURAL PLANNING ORGANIZATIONS
         Sec. 472.151.  DEFINITION. "Rural planning organization"
  means a planning organization created in accordance with Section
  472.152 to carry out the rural transportation planning functions
  under Section 472.154 in areas that lie outside the boundaries of a
  metropolitan planning organization.
         Sec. 472.152.  CREATION OF RURAL PLANNING ORGANIZATION;
  BOUNDARIES. (a) A rural planning organization may be created by
  resolutions by the commissioners courts of:
               (1)  at least two counties, other than counties whose
  entire area is served by a metropolitan planning organization, that
  make up at least two-thirds of the counties in a regional planning
  commission under Chapter 391, Local Government Code; or
               (2)  at least two-thirds of the counties, other than
  counties whose entire area is served by a metropolitan planning
  organization, that make up a department district.
         (b)  As soon as practicable after its creation, a rural
  planning organization shall send notice of its creation to the
  commission.
         (c)  The boundaries of a rural planning organization created
  by counties described by Subsection (a)(1) are the boundaries of
  the area served by the regional planning commission. The
  boundaries of a rural planning organization created by counties
  described by Subsection (a)(2) are the boundaries of the department
  district.
         Sec. 472.153.  COMPOSITION OF BOARD OF DIRECTORS OF RURAL
  PLANNING ORGANIZATION. (a) A rural planning organization is
  governed by a board of directors whose membership must include:
               (1)  not more than 50 percent local elected officials
  representing political subdivisions located in the boundaries of
  the rural planning organization; and
               (2)  the district engineer of the department district
  or districts in the boundaries of the rural planning organization.
         (b)  The orders of the commissioners courts creating the
  organization under Section 472.152 must provide for the appointment
  of the initial board of directors.
         (c)  Additional directors may be appointed from residents of
  the area served by the rural planning organization in a manner
  determined by the board of directors.
         Sec. 472.154.  RURAL TRANSPORTATION PLANNING. (a) A rural
  planning organization shall:
               (1)  establish regional transportation priorities, and
  prioritize and recommend to the department projects of regional
  significance in the boundaries of the area served by the
  organization; and
               (2)  provide input to the department on projects
  involving the connectivity of the state highway system.
         (b)  A rural planning organization may provide planning
  assistance as may be necessary to support regional transportation
  priorities.
         Sec. 472.155.  DEPARTMENT PARTICIPATION. The department:
               (1)  shall provide funds and personnel to assist rural
  planning organizations with rural transportation planning, which
  may include:
                     (A)  eligible federal planning funds not
  designated for metropolitan planning organizations;
                     (B)  money appropriated to the department from the
  state highway funds; and
                     (C)  other funds as may be available to fund the
  operations of a rural planning organization;
               (2)  shall work with rural planning organizations to
  identify available sources of funding for rural transportation
  planning, which may include federal funds or transportation
  development credits; and
               (3)  may contract with rural planning organizations to
  provide services necessary to support rural transportation
  planning.
         (b)  A rural planning organization created by board
  resolution of a council of governments before the effective date of
  this Act that otherwise conforms to the requirements of this
  section is recognized as having been validly created under this
  Act.
  ARTICLE 3. PUBLIC INVOLVEMENT AND COMPLAINTS
         SECTION 3.01.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Section 201.605 to read as follows:
         Sec. 201.605.  PUBLIC PARTICIPATION. (a)  The commission by
  rule shall provide for the department to hold, or provide the
  opportunity for, one or more public hearings for any transportation
  project owned or operated by the department that requires the
  acquisition of significant amounts of rights-of-way, substantially
  changes the layout or functions of connecting roadways or of a
  facility being improved, has a substantial adverse impact on
  abutting property, or otherwise has a significant social, economic,
  environmental, or other effect, or for which the department
  determines that a public hearing is in the public interest. The
  rules must provide for the public's submission of oral or written
  comments and the department's preparation of written responses to
  the comments. The department shall prepare a transcript of any oral
  comments submitted.
         (b)  The commission by rule shall provide for the department
  to hold, or provide the opportunity for, one or more public meetings
  for an informal exchange of information between the department and
  the public for a transportation project owned or operated by the
  department. The rules must provide for the public meetings to be
  held at the earliest stages of the project as possible.
         (c)  Notice of a public hearing or a public meeting under
  this section must:
               (1)  be by publication in the locality of the
  transportation project not less than seven or more than 20 days
  before the date of the hearing or meeting;
               (2)  be distributed to the public not less than seven
  days before the date of the hearing or meeting using methods
  suitable for the distribution given the nature of the
  transportation project and the populations that may be affected by
  it;
               (3)  be simple, readable, and informative;
               (4)  include:
                     (A)  the name and description of the project;
                     (B)  a map or graphic illustration of the project;
                     (C)  the reason for the project;
                     (D)  the purpose of the hearing or meeting;
                     (E)  the location, date, and time of the hearing
  or meeting;
                     (F)  a contact telephone number for information
  about the hearing or meeting; and
                     (G)  the Internet website address where project
  information and the materials used at the hearing or meeting may be
  viewed; and
               (5)  if the population that will be affected by the
  project is significantly non-English-speaking, also be published
  in the dominant language of a majority of that population.
         (d)  Any interested person may attend a public hearing or a
  public meeting held under this section.
         (e)  The department shall publish on its Internet website any
  materials used at a public hearing or public meeting not later than
  the third day after the date of the hearing or meeting.
         (f)  If the department holds more than one public hearing or
  one public meeting for a transportation project, the department
  shall vary the scheduling of the hearings or meetings to
  accommodate persons living in different geographic areas affected
  by the project and persons with varied work schedules.
         (g)  The department's presentation of information at a
  public hearing or meeting must include:
               (1)  the design and schematic layout of the project;
               (2)  the problem or need to be addressed by the project;
               (3)  a reference to the part of the department's
  mission, strategic plan, or legislative direction that is furthered
  by the project, and the project's relation to the local planning
  process;
               (4)  an explanation using diagrams, flowcharts, or
  other devices to illustrate procedural steps of the project, and an
  estimated timeline leading to the completion of the project; and
               (5)  a discussion of significant impacts of the
  project.
         (h)  The department shall make available an electronic mail
  address or Internet website that may be used to submit public
  comments concerning a project.
         (i)  The commission by rule shall provide owners of adjoining
  property and affected local governments and public officials with
  notice and an opportunity for comment on a state highway project
  that involves:
               (1)  the addition of one or more vehicular lanes to an
  existing highway; or
               (2)  the construction of a highway at a new location.
         (j)  The commission by rule shall provide procedures for
  informing adjoining property owners and affected local governments
  and public officials of impending construction.
         SECTION 3.02.  (a) Section 201.801, Transportation Code, is
  amended to read as follows:
         Sec. 201.801.  [INFORMATION ABOUT DEPARTMENT;] COMPLAINTS.
  (a) The department shall maintain a system to promptly and
  efficiently act on complaints filed with the department. The
  department shall maintain information about the parties to and the
  subject matter of a complaint and a summary of the results of the
  review or investigation of the complaint and the disposition of the
  complaint.
         (b)  The department shall make information available
  describing its procedures for complaint investigation and
  resolution [prepare information of public interest describing the
  functions of the department and the department's procedures by
  which a complaint is filed with the department and resolved by the
  department. The department shall make the information available to
  the public and appropriate state agencies].
         [(b)     The commission by rule shall establish methods by which
  consumers and service recipients are notified of the department's
  name, mailing address, and telephone number for directing
  complaints to the department. The commission may provide for that
  notification:
               [(1)     on each registration form, application, or
  written contract for services of an individual or entity regulated
  by the department;
               [(2)     on a sign prominently displayed in the place of
  business of each individual or entity regulated by the department;
  or
               [(3)     in a bill for service provided by an individual or
  entity regulated by the department.]
         (c)  [The department shall:
               [(1)     keep an information file about each written
  complaint filed with the department that the department has the
  authority to resolve; and
               [(2)     provide the person who filed the complaint, and
  each person or entity that is the subject of the complaint,
  information about the department's policies and procedures
  relating to complaint investigation and resolution.
         [(d)]  The department[, at least quarterly and until final
  disposition of a written complaint that is filed with the
  department and that the department has the authority to resolve,]
  shall periodically notify the parties to the complaint of its
  status until final disposition unless the notice would jeopardize
  an undercover investigation.
         (d)  The commission shall adopt rules applicable to each
  division and district to establish a process to act on complaints
  filed with the department [(e)     With regard to each complaint filed
  with the department, the department shall keep the following
  information:
               [(1)  the date the complaint is filed;
               [(2)  the name of the person filing the complaint;
               [(3)  the subject matter of the complaint;
               [(4)     a record of each person contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     if the department takes no action on the
  complaint, an explanation of the reasons that no action was taken].
         (e)  The department shall develop a standard form for
  submitting a complaint and make the form available on its Internet
  website. The department shall establish a method to submit
  complaints electronically.
         (f)  The department shall develop a method for analyzing the
  sources and types of complaints and violations and establish
  categories for the complaints and violations. The department shall
  use the analysis to focus its information and education efforts on
  specific problem areas identified through the analysis.
         (g)  The department shall:
               (1)  compile:
                     (A)  detailed statistics and analyze trends on
  complaint information, including:
                           (i)  the nature of the complaints;
                           (ii)  their disposition; and
                           (iii)  the length of time to resolve
  complaints; and
                     (B)  complaint information on a district and a
  divisional basis; and
               (2)  report the information on a monthly basis to the
  division directors, office directors, and district engineers and on
  a quarterly basis to the commission.
         (b)  The Texas Department of Transportation shall adopt
  rules under Section 201.801, Transportation Code, as amended by
  this section, not later than March 1, 2010.
         SECTION 3.03.  Subchapter J, Chapter 201, Transportation
  Code, is amended by adding Section 201.812 to read as follows:
         Sec. 201.812.  PUBLIC INVOLVEMENT POLICY. (a) The
  department shall develop and implement a policy for public
  involvement that guides and encourages public involvement with the
  department. The policy must:
               (1)  provide for the use of public involvement
  techniques that target different groups and individuals;
               (2)  encourage continuous contact between the
  department and persons outside the department throughout the
  transportation decision-making process;
               (3)  require the department to make efforts toward:
                     (A)  clearly tying public involvement to
  decisions made by the department; and
                     (B)  providing clear information to the public
  about specific outcomes of public input; and
               (4)  apply to all public input with the department,
  including input:
                     (A)  on statewide transportation policy-making;
                     (B)  in connection with the environmental process
  relating to specific projects; and
                     (C)  into the department's rulemaking procedures.
         (b)  The department shall document the ratio of positive
  public input to negative public input regarding all environmental
  impact statements as expressed by the public through the
  department's public involvement process. The department shall:
               (1)  present this information to the commission in an
  open meeting; and
               (2)  report this information on the department's
  Internet website in a timely manner.
         SECTION 3.04.  Subchapter B, Chapter 203, Transportation
  Code, is repealed.
  ARTICLE 4. CONTRACTING FUNCTIONS
         SECTION 4.01.  Section 223.002, Transportation Code, is
  amended to read as follows:
         Sec. 223.002.  NOTICE OF BIDS [BY PUBLICATION]. [(a)] The
  department shall give [publish] notice to interested persons
  regarding [of] the time and place at which bids on a contract will
  be opened and the contract awarded. The department by rule shall
  determine the most effective method for providing the notice
  required by this section.
         [(b)     The notice must be published in a newspaper published
  in the county in which the improvement is to be made once a week for
  at least two weeks before the time set for awarding the contract and
  in two other newspapers that the department may designate.
         [(c)     Instead of the notice required by Subsection (b), if
  the department estimates that the contract involves an amount less
  than $300,000, notice may be published in two successive issues of a
  newspaper published in the county in which the improvement is to be
  made.
         [(d)     If a newspaper is not published in the county in which
  the improvement is to be made, notice shall be published in a
  newspaper published in the county:
               [(1)     nearest the county seat of the county in which the
  improvement is to be made; and
               [(2)  in which a newspaper is published.]
         SECTION 4.02. Section 223.205, Transportation Code, is
  amended by amending Subsections (a), (b), (d), (f), and (g) and
  adding Subsections (h) and (i) to read as follows:
         (a)  The [Notwithstanding Section 223.006 and the
  requirements of Subchapter B, Chapter 2253, Government Code, the]
  department shall require a private entity entering into a
  comprehensive development agreement under this subchapter to
  provide a performance and payment bond or an alternative form of
  security, or a combination of forms of security, in an amount as
  determined by the department that is sufficient to:
               (1)  ensure the proper performance of the construction
  work to be performed under the agreement; and
               (2)  protect:
                     (A)  the department; and
                     (B)  payment bond beneficiaries who have a direct
  contractual relationship with the private entity or a subcontractor
  of the private entity to supply labor or material for the
  construction work.
         (b)  A performance and payment bond or alternative form of
  security shall be in an amount equal to the cost of constructing [or
  maintaining] the project.
         (d)  A [payment or performance] bond or alternative form of
  security is not required for the portion of an agreement that is for
  [includes] only design or planning services, the performance of
  preliminary studies, [or] the acquisition of real property,
  maintenance, or operations.
         (f)  The [In addition to or instead of a performance and
  payment bond, the] department may require one or more of the
  following alternative forms of security:
               (1)  a cashier's check drawn on a financial entity
  specified by the department;
               (2)  a United States bond or note;
               (3)  an irrevocable bank letter of credit; [or]
               (4)  debt and equity contributed by the private entity
  that is not recoverable in the event of termination of the agreement
  because of the private entity's breach; or
               (5)  any other form of security determined suitable by
  the department.
         (g)  The commission [department] by rule shall prescribe
  requirements for an alternative form of security provided under
  this section.
         (h)  Section 223.006 of this code and Chapter 2253,
  Government Code, do not apply to a bond or alternative form of
  security required under this section.
         (i)  The commission shall prepare and file annually with the
  governor, the lieutenant governor, and the Legislative Budget Board
  a report providing information on the operations of highway
  projects for which a comprehensive development has been entered
  into with a private entity.
         SECTION 4.03.  Sections 223.201(a) and (g), Transportation
  Code, are amended to read as follows:
         (a)  The [Subject to Section 223.202, the] department may
  enter into a comprehensive development agreement with a private
  entity to design, develop, finance, construct, maintain, repair,
  operate, extend, or expand a:
               (1)  state highway [toll project]; or
               (2)  facility, as defined by Section 227.001, or a
  combination of facilities on the Trans-Texas Corridor[;
               [(3)     state highway improvement project that includes
  both tolled and nontolled lanes and may include nontolled
  appurtenant facilities;
               [(4)     state highway improvement project in which the
  private entity has an interest in the project; or
               [(5)     state highway improvement project financed
  wholly or partly with the proceeds of private activity bonds, as
  defined by Section 141(a), Internal Revenue Code of 1986].
         (g)  The department may combine in a comprehensive
  development agreement under this subchapter a state highway [toll
  project] and a rail facility as defined by Section 91.001.
         SECTION 4.04.  Section 223.203(e-2), Transportation Code,
  is amended to read as follows:
         (e-2)  In this section, "design-build contract" means a
  comprehensive development agreement that includes the design and
  construction of a [turnpike] project, does not include the
  financing of a [turnpike] project, and may include the acquisition,
  maintenance, or operation of a [turnpike] project.
         SECTION 4.05.  Section 223.203(m), Transportation Code, is
  amended to read as follows:
         (m)  The department may pay an unsuccessful private entity
  that submits a responsive proposal in response to a request for
  detailed proposals under Subsection (f) a stipulated amount in
  exchange for the work product contained in that proposal. A
  stipulated amount must be stated in the request for proposals and
  may not exceed the value of any work product contained in the
  proposal that can, as determined by the department, be used by the
  department in the performance of its functions. The use by the
  department of any design element contained in an unsuccessful
  proposal is subject to the private entity's acceptance of the
  stipulated amount, is at the sole risk and discretion of the
  department, and does not confer liability on the recipient of the
  stipulated amount under this section. After acceptance and payment
  of the stipulated amount:
               (1)  the department owns with the unsuccessful proposer
  jointly the rights to, and may make use of any work product
  contained in, the proposal, including the technologies,
  techniques, methods, processes, ideas, and information contained
  in the project design; and
               (2)  the use by the unsuccessful proposer of any
  portion of the work product contained in the proposal is at the sole
  risk of the unsuccessful proposer and does not confer liability on
  the department.
         SECTION 4.06.  Section 223.208(e), Transportation Code, is
  amended to read as follows:
         (e)  Notwithstanding anything in Section 201.112 or other
  law to the contrary, and subject to compliance with the dispute
  resolution procedures set out in the comprehensive development
  agreement, an obligation of the commission or the department under
  a comprehensive development agreement entered into under this
  subchapter or Section 227.023(c) to make or secure payments to a
  person because of the termination of the agreement, including the
  purchase of the interest of a private participant or other investor
  in a project, may be enforced by mandamus against the commission,
  the department, and the comptroller in a district court of Travis
  County, and the sovereign immunity of the state is waived for that
  purpose. The district courts of Travis County shall have exclusive
  jurisdiction and venue over and to determine and adjudicate all
  issues necessary to adjudicate any action brought under this
  subsection. The remedy provided by this subsection is in addition
  to any legal and equitable remedies that may be available to a party
  to a comprehensive development agreement. This subsection does not
  apply to a design-build contract, as defined by Section
  223.203(e-2), for a nontolled facility.
         SECTION 4.07.  Section 223.206(b), Transportation Code, is
  amended to read as follows:
         (b)  Notwithstanding Subsection (a), the department may
  enter into an agreement that provides for the lease of
  rights-of-way, the granting of easements, the issuance of
  franchises, licenses, or permits, or any lawful uses to enable a
  private entity to construct, operate, and maintain a project,
  including supplemental facilities.  At the termination of the
  agreement, the highway or other facilities are to be in a state of
  proper maintenance as determined by the department and [shall be]
  returned to the department in satisfactory condition at no further
  cost other than any compensation the department agrees to pay on an
  early termination of the agreement. In lieu of the private entity's
  performing necessary maintenance, repair, or renewal work before
  returning the highway or other facilities to the department, the
  agreement may require payment to the department in the amount the
  department determines to be appropriate to fund maintenance,
  repair, or renewal work that is scheduled to occur subsequent to
  termination of the agreement.
         SECTION 4.08.  Subchapter C, Chapter 371, Transportation
  Code, as added by Chapter 264 (S.B. 792), Acts of the 80th
  Legislature, Regular Session, 2007, is amended by adding Section
  371.105 to read as follows:
         Sec. 371.105.  PROHIBITION AGAINST CONCESSION PAYMENTS;
  REVENUE SHARING. (a) In this section, "concession payment" means
  an up-front payment made by a private participant in return for
  which the private participant is granted a right to operate and
  receive revenue from a toll project.
         (b)  A toll project entity is prohibited from accepting a
  concession payment as part of a comprehensive development
  agreement.
         (c)  A toll project entity may enter into a revenue sharing
  agreement with a private participant as part of a comprehensive
  development agreement.
         (d)  This section does not apply to:
               (1)  the State Highway 161 project from State Highway
  183 to Interstate Highway 20 in Dallas County;
               (2)  the United States Highway 281 project in Bexar
  County from Loop 1604 to the Comal County line;
               (3)  the Loop 49 project from Interstate Highway 20 to
  State Highway 110 in Smith County;
               (4)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of
  Farm-to-Market Road 2499 to south of State Highway 360);
               (5)  the North Tarrant Express project in Tarrant and
  Dallas Counties (Interstate Highway 820 and State Highway 121/State
  Highway 183 from Interstate Highway 35W to State Highway 161,
  Interstate Highway 820 east from State Highway 121/State Highway
  183 to Randol Mill Road, and Interstate Highway 35W from Interstate
  Highway 30 to State Highway 170);
               (6)  the United States Highway 290 project from east of
  United States Highway 183 to east of Farm-to-Market Road 973 in
  Travis County;
               (7)  the State Highway 99 (Grand Parkway) project;
               (8)  the Interstate Highway 635 managed lanes project
  in Dallas County (Interstate Highway 635 from east of Luna Road to
  Greenville Avenue and Interstate Highway 35E from south of the Loop
  12/Interstate Highway 35E split to south of Valwood Parkway);
               (9)  Phase 4 extension of the Dallas North Tollway in
  Collin and Denton Counties from United States Highway 380 to the
  Grayson County line to be developed by North Texas Tollway
  Authority;
               (10)  the Southwest Parkway (State Highway 121) in
  Tarrant County from Interstate 30 to Dirks Road/Altamesa Boulevard
  and the Chisholm Trail project from Dirks Road/Altamesa Boulevard
  to U.S. Highway 67 in the City of Cleburne; or
               (11)  a comprehensive development agreement in
  connection with a project associated with any portion of the Loop 9
  project that is located in a nonattainment air quality area as
  designated by the United States Environmental Protection Agency
  that includes two adjacent counties that each have a population of
  one million or more.
         SECTION 4.09.  Subsection (a), Section 371.151,
  Transportation Code, as added by Chapter 264 (S.B. 792), Acts of the
  80th Legislature, Regular Session, 2007, is amended to read as
  follows:
         (a)  Before a toll project entity enters into a contract for
  the construction of a toll project, the entity shall publish in the
  manner provided by Section 371.152 information regarding:
               (1)  project financing, including:
                     (A)  the total amount of debt that has been and
  will be assumed to acquire, design, construct, operate, and
  maintain the toll project;
                     (B)  a description of how the debt will be repaid,
  including a projected timeline for repaying the debt; and
                     (C)  the projected amount of interest that will be
  paid on the debt;
               (2)  whether the toll project will continue to be
  tolled after the debt has been repaid;
               (3)  a description of the method that will be used to
  set toll rates;
               (4)  a description of any terms in the contract
  relating to competing facilities, including any penalties
  associated with the construction of a competing facility;
               (5)  a description of any terms in the contract
  relating to a termination for convenience provision, including any
  information regarding how the value of the project will be
  calculated for the purposes of making termination payments;
               (6)  the initial toll rates, the methodology for
  increasing toll rates, and the projected toll rates at the end of
  the term of the contract; and
               (7)  the terms of any revenue sharing agreement [the
  projected total amount of concession payments].
         SECTION 4.10.  (a)  The changes in law made by Section
  371.151, Transportation Code, as amended by this article, and
  Section 371.105, Transportation Code, as added by this article,
  apply only to a comprehensive development agreement entered into on
  or after the effective date of this Act.
         (b)  A comprehensive development agreement entered into
  before the effective date of this Act is governed by the law in
  effect on the day the agreement was finalized, and the former law is
  continued in effect for that purpose.
  ARTICLE 5. REGULATION OF MOTOR VEHICLE DEALERS, SALVAGE VEHICLE
  DEALERS, AND HOUSEHOLD GOODS CARRIERS
         SECTION 5.01.  (a) Section 643.153, Transportation Code, is
  amended by amending Subsection (b) and adding Subsections (c), (h),
  and (i) to read as follows:
         (b)  The department may adopt rules necessary to ensure that
  a customer of a motor carrier transporting household goods is
  protected from deceptive or unfair practices and unreasonably
  hazardous activities. The rules must:
               (1)  establish a formal process for resolving a dispute
  over a fee or damage;
               (2)  require a motor carrier to indicate clearly to a
  customer whether an estimate is binding or nonbinding and disclose
  the maximum price a customer could be required to pay;
               (3)  create a centralized process for making complaints
  about a motor carrier that also allows a customer to inquire about a
  carrier's complaint record; [and]
               (4)  require a motor carrier transporting household
  goods to list a place of business with a street address in this
  state and the carrier's registration number issued under this
  article in any print advertising published in this state; and
               (5)  require a motor carrier transporting household
  goods to submit to the department, at the time of the original motor
  carrier registration and at the renewal of the registration,
  documentation on whether the motor carrier:
                     (A)  regularly requests and obtains criminal
  history record information on its employees under Chapter 145,
  Civil Practice and Remedies Code; and
                     (B)  uses the criminal history record information
  to exclude from employment persons who have committed a serious
  criminal offense.
         (c)  The department shall make available to the public on the
  department's Internet website the information received under
  Subsection (b)(5) to allow members of the public to make an informed
  choice when selecting a motor carrier to transport household goods.
         (h)  Subject to Subsection (i), the department may order a
  motor carrier that transports household goods to pay a refund to a
  customer as provided in an agreement resulting from an informal
  settlement instead of or in addition to imposing an administrative
  penalty under this chapter.
         (i)  The amount of a refund ordered as provided in an
  agreement resulting from an informal settlement may not exceed the
  amount the customer paid to the motor carrier for a service or the
  amount the customer paid for an item damaged by the motor carrier,
  without requiring an estimation of the actual cost of the damage.
  The department may not require payment of other damages or estimate
  harm in a refund order.
         (b)  The change in law made by Sections 643.153(h) and (i),
  Transportation Code, as added by this section, applies only to an
  agreement to transport household goods entered into on or after the
  effective date of this Act. An agreement to transport household
  goods entered into before the effective date of this Act is governed
  by the law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 5.02.  (a) Section 643.251(b), Transportation Code,
  is amended to read as follows:
         (b)  Except as provided by this section, the amount of an
  administrative penalty may not exceed $5,000. If it is found that
  the motor carrier knowingly committed the violation, the penalty
  may not exceed $15,000. [If it is found that the motor carrier
  knowingly committed multiple violations, the aggregate penalty for
  the multiple violations may not exceed $30,000.] Each day a
  violation continues or occurs is a separate violation for purposes
  of imposing a penalty.
         (b)  The change in law made by this section to Section
  643.251, Transportation Code, applies only to a violation committed
  by a motor carrier on or after the effective date of this Act. For
  purposes of this subsection, a violation was committed before the
  effective date of this Act if any element of the violation was
  committed before that date. A violation committed by a motor
  carrier before the effective date of this Act is covered by the law
  in effect on the date the violation was committed, and the former
  law is continued in effect for that purpose.
         SECTION 5.03.  Subchapter F, Chapter 643, Transportation
  Code, is amended by adding Sections 643.256 and 643.257 to read as
  follows:
         Sec. 643.256.  SUMMARY SUSPENSION. (a) The department may
  summarily suspend the registration of a motor carrier registered
  under this chapter if the motor carrier's failure to comply with
  this chapter or a rule adopted under this chapter is determined by
  the department to constitute a continuing and imminent threat to
  the public safety and welfare.
         (b)  To initiate a proceeding to take action under Subsection
  (a), the department must serve notice on the motor carrier. The
  notice must:
               (1)  state the grounds for summary suspension;
               (2)  be personally served on the motor carrier or sent
  to the motor carrier by certified or registered mail, return
  receipt requested, to the motor carrier's mailing address as it
  appears in the department's records; and
               (3)  inform the motor carrier of the right to a hearing
  on the suspension.
         (c)  The suspension is effective on the date notice is
  personally served or received by mail. The motor carrier is
  entitled to appeal the suspension in the manner provided by Section
  643.2525 for the appeal of an order of the board.
         Sec. 643.257.  EMERGENCY CEASE AND DESIST ORDER. (a) If it
  appears to the board that a motor carrier who is not registered to
  transport household goods for compensation under Section 643.051 is
  violating this chapter, a rule adopted under this chapter, or
  another state statute or rule relating to the transportation of
  household goods and the board determines that the unauthorized
  activity constitutes a clear, imminent, or continuing threat to the
  public health and safety, the board may:
               (1)  issue an emergency cease and desist order
  prohibiting the motor carrier from engaging in the activity; and
               (2)  report the activity to a local law enforcement
  agency or the attorney general for prosecution.
         (b)  An order issued under Subsection (a) must:
               (1)  be delivered on issuance to the motor carrier
  affected by the order by personal delivery or registered or
  certified mail, return receipt requested, to the motor carrier's
  last known address;
               (2)  state the acts or practices alleged to be an
  unauthorized activity and require the motor carrier immediately to
  cease and desist from the unauthorized activity; and
               (3)  contain a notice that a request for hearing may be
  filed under this section.
         (c)  A motor carrier against whom an emergency cease and
  desist order is directed may request a hearing before the 11th day
  after the date it is served on the motor carrier. If the motor
  carrier does not request a hearing in that time, the order is final
  and nonappealable as to that motor carrier.  A request for a
  hearing must:
               (1)  be in writing and directed to the board; and
               (2)  state the grounds for the request to set aside or
  modify the order.
         (d)  On receiving a request for a hearing, the board shall
  serve notice of the time and place of the hearing by personal
  delivery or registered or certified mail, return receipt
  requested.  The hearing must be held not later than the 10th day
  after the date the board receives the request for a hearing unless
  the parties agree to a later hearing date. A hearing under this
  subsection is subject to Chapter 2001, Government Code.
         (e)  After the hearing, the board shall affirm, modify, or
  set aside wholly or partly the emergency cease and desist order. An
  order affirming or modifying the emergency cease and desist order
  is immediately final for purposes of enforcement and appeal.
         (f)  An order under this section continues in effect unless
  the order is stayed by the board. The board may impose any
  condition before granting a stay of the order.
         (g)  The board may release to the public a final cease and
  desist order issued under this section or information regarding the
  existence of the order if the board determines that the release
  would enhance the effective enforcement of the order or will serve
  the public interest.
         (h)  A violation of an order issued under this section
  constitutes additional grounds for imposing an administrative
  penalty under this chapter.
         SECTION 5.04.  Section 2301.654, Occupations Code, is
  amended to read as follows:
         Sec. 2301.654.  PROBATION. If a suspension of a license is
  probated, the board may:
               (1)  require the license holder to report regularly to
  the board on matters that are the basis of the probation; [or]
               (2)  limit activities to those prescribed by the board;
  or
               (3)  require the license holder to obtain specialized
  training so that the license holder attains a degree of skill
  satisfactory to the board in those areas that are the basis of the
  probation.
         SECTION 5.05.  Section 2301.801, Occupations Code, is
  amended by amending Subsections (a) and (c), and adding Subsections
  (d), (e), (f), and (g) to read as follows:
         Sec. 2301.801.  ADMINISTRATIVE [CIVIL] PENALTY.  (a)  If,
  after a proceeding under this chapter and board rules, the board
  determines that a person is violating or has violated this chapter,
  a rule adopted or order issued under this chapter, or Section
  503.038(a), Transportation Code, the board may impose an
  administrative [a civil] penalty. The amount of the penalty may not
  exceed $10,000 for each violation. Each act of violation and each
  day a violation continues is a separate violation.
         (c)  The board by rule shall adopt a schedule of
  administrative penalties based on the criteria in Subsection (b) to
  ensure that the amount of a penalty imposed under this section is
  appropriate to the violation [Notwithstanding any other law to the
  contrary, a civil penalty recovered under this chapter shall be
  deposited in the state treasury to the credit of the state highway
  fund].
         (d)  The enforcement of an administrative penalty ordered
  under this section may be stayed during the time the order is under
  judicial review if the person pays the penalty to the clerk of the
  court or files a supersedeas bond with the court in the amount of
  the penalty. A person who cannot afford to pay the penalty or file
  the bond may stay the enforcement by filing an affidavit in the
  manner required by the Texas Rules of Civil Procedure for a party
  who cannot afford to file security for costs, subject to the right
  of the commission to contest the affidavit as provided by those
  rules.
         (e)  The attorney general may sue to collect an
  administrative penalty assessed under this section. The attorney
  general may recover on behalf of the state the reasonable expenses
  incurred in obtaining the penalty, including investigation and
  court costs, reasonable attorney's fees, witness fees, and other
  expenses.
         (f)  An administrative penalty collected under this section
  shall be deposited to the credit of the general revenue fund.
         (g)  A proceeding to impose an administrative penalty under
  this section is a contested case hearing under Chapter 2001,
  Government Code.
         SECTION 5.06.  (a) Subchapter Q, Chapter 2301, Occupations
  Code, is amended by adding Section 2301.808 to read as follows:
         Sec. 2301.808.  REFUND. (a)  Subject to Subsection (b), the
  board may order a motor vehicle dealer to pay a refund to a consumer
  as provided in an agreement resulting from an informal settlement
  instead of or in addition to imposing an administrative penalty
  under this chapter.
         (b)  The amount of a refund ordered as provided in an
  agreement resulting from an informal settlement may not exceed the
  amount the consumer paid to the motor vehicle dealer. The board may
  not require payment of other damages or estimate harm in a refund
  order.
         (b)  Subchapter H, Chapter 2302, Occupations Code, is
  amended by adding Section 2302.352 to read as follows:
         Sec. 2302.352.  ADMINISTRATIVE PENALTY. (a) The board may
  impose an administrative penalty on a salvage vehicle dealer
  licensed under this chapter who violates this chapter or a rule or
  order adopted under this chapter.
         (b)  The amount of an administrative penalty imposed under
  this section may not exceed $5,000. Each day a violation continues
  or occurs is a separate violation for the purpose of imposing a
  penalty. The amount of the penalty shall be based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the economic harm to property or the environment
  caused by the violation;
               (3)  the history of previous violations;
               (4)  the amount necessary to deter a future violation;
               (5)  the threat to the public safety and welfare;
               (6)  efforts to correct the violation; and
               (7)  any other matter that justice may require.
         (c)  The board by rule shall adopt a schedule of
  administrative penalties based on the criteria listed in Subsection
  (b) for violations subject to an administrative penalty under this
  section to ensure that the amount of a penalty imposed is
  appropriate to the violation.
         (d)  The enforcement of an administrative penalty may be
  stayed during the time the order is under judicial review if the
  person pays the penalty to the clerk of the court or files a
  supersedeas bond with the court in the amount of the penalty. A
  person who cannot afford to pay the penalty or file the bond may
  stay the enforcement by filing an affidavit in the manner required
  by the Texas Rules of Civil Procedure for a party who cannot afford
  to file security for costs, subject to the right of the board to
  contest the affidavit as provided by those rules.
         (e)  The attorney general may sue to collect an
  administrative penalty imposed under this section. In the suit the
  attorney general may recover, on behalf of the state, the
  reasonable expenses incurred in obtaining the penalty, including
  investigation and court costs, reasonable attorney's fees, witness
  fees, and other expenses.
         (f)  An administrative penalty collected under this section
  shall be deposited in the general revenue fund.
         (g)  A proceeding to impose an administrative penalty under
  this section is a contested case under Chapter 2001, Government
  Code.
         (c)  The change in law made by Section 2301.808, Occupations
  Code, as added by this section, applies only to a motor vehicle
  purchased or leased on or after the effective date of this Act. A
  motor vehicle purchased or leased before the effective date of this
  Act is governed by the law in effect immediately before that date,
  and that law is continued in effect for that purpose.
  ARTICLE 6. REGULATION OF OUTDOOR ADVERTISING
         SECTION 6.01.  Section 391.004, Transportation Code, is
  amended to read as follows:
         Sec. 391.004.  TEXAS HIGHWAY BEAUTIFICATION FUND ACCOUNT.
  The Texas highway beautification fund account is an account in the
  general revenue fund. Money the commission receives under this
  chapter shall be deposited to the credit of the Texas highway
  beautification fund account. The commission shall use money in the
  Texas highway beautification fund account to administer this
  chapter and Chapter 394.
         SECTION 6.02.  (a)  Subchapter A, Chapter 391,
  Transportation Code, is amended by adding Section 391.006 to read
  as follows:
         Sec. 391.006.  COMPLAINTS; RECORDS. (a) The department by
  rule shall establish procedures for accepting and resolving written
  complaints related to outdoor advertising under this chapter. The
  rules must include:
               (1)  a process to make information available describing
  its procedures for complaint investigation and resolution,
  including making information about the procedures available on the
  department's Internet website;
               (2)  a simple form for filing complaints with the
  department;
               (3)  a system to prioritize complaints so that the most
  serious complaints receive attention before less serious
  complaints; and
               (4)  a procedure for compiling and reporting detailed
  annual statistics about complaints.
         (b)  The department shall provide on the department's
  Internet website information about the department's policies and
  procedures relating to complaint investigation and resolution. The
  department shall also provide that information to any person who
  requests a written copy of the information.
         (c)  The department shall keep for at least 10 years an
  information file about each written complaint filed with the
  department that the department has authority to resolve. The
  department shall keep the following information for each complaint
  for the purpose of enforcing this chapter:
               (1)  the date the complaint is filed;
               (2)  the name of the person filing the complaint;
               (3)  the subject matter of the complaint;
               (4)  each person contacted in relation to the
  complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  if the department does not take action on the
  complaint, an explanation of the reasons that action was not taken.
         (d)  If a written complaint is filed with the department that
  the department has authority to resolve, the department, at least
  quarterly and until final disposition of the complaint, shall
  notify the parties to the complaint of the status of the complaint
  unless the notice would jeopardize an ongoing department
  investigation.
         (b)  The Texas Department of Transportation shall adopt
  rules under Section 391.006, Transportation Code, as added by this
  section, not later than September 1, 2010.
         SECTION 6.03.  Section 391.035(c), Transportation Code, is
  amended to read as follows:
         (c)  A penalty collected under this section shall be
  deposited to the credit of the Texas highway beautification [state
  highway] fund account if collected by the attorney general and to
  the credit of the county road and bridge fund of the county in which
  the violation occurred if collected by a district or county
  attorney.
         SECTION 6.04.  Subchapter B, Chapter 391, Transportation
  Code, is amended by adding Section 391.0355 to read as follows:
         Sec. 391.0355.  ADMINISTRATIVE PENALTY. (a) In lieu of a
  suit to collect a civil penalty, the commission, after notice and an
  opportunity for a hearing before the commission, may impose an
  administrative penalty against a person who violates this chapter
  or a rule adopted by the commission under this chapter. Each day a
  violation continues is a separate violation.
         (b)  The amount of the administrative penalty may not exceed
  the maximum amount of a civil penalty under Section 391.035.
         (c)  A proceeding under this section is a contested case
  under Chapter 2001, Government Code.
         (d)  Judicial review of an appeal of an administrative
  penalty imposed under this section is under the substantial
  evidence rule.
         (e)  An administrative penalty collected under this section
  shall be deposited to the credit of the Texas highway
  beautification fund account.
         SECTION 6.05.  Section 391.063, Transportation Code, is
  amended to read as follows:
         Sec. 391.063.  LICENSE FEE. The commission may set the
  amount of a license fee according to a scale graduated by the number
  of units of outdoor advertising and number of off-premise signs
  under Chapter 394 owned by a license applicant.
         SECTION 6.06.  Section 391.065(b), Transportation Code, is
  amended to read as follows:
         (b)  For the efficient management and administration of this
  chapter and to reduce the number of employees required to enforce
  this chapter, the commission shall adopt rules for issuing
  standardized forms that are for submission by license holders and
  applicants and that provide for an accurate showing of the number,
  location, or other information required by the commission for each
  license holder's or applicant's outdoor advertising or off-premise
  signs under Chapter 394.
         SECTION 6.07.  Section 391.066, Transportation Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  The commission may deny the renewal of a license
  holder's license if the license holder has not complied with the
  permit requirements of this chapter or Chapter 394.
         SECTION 6.08.  Subchapter C, Chapter 391, Transportation
  Code, is amended by adding Section 391.0661 to read as follows:
         Sec. 391.0661.  APPLICABILITY OF LICENSE. In addition to
  authorizing a person to erect or maintain outdoor advertising, a
  license issued under this chapter authorizes a person to erect or
  maintain an off-premise sign under Chapter 394.
         SECTION 6.09.  Section 391.254(c), Transportation Code, is
  amended to read as follows:
         (c)  A civil penalty collected by the attorney general under
  this section shall be deposited to the credit of the Texas highway
  beautification [state highway] fund account.
         SECTION 6.10.  Section 394.005, Transportation Code, is
  amended to read as follows:
         Sec. 394.005.  DISPOSITION OF FEES. Money the commission
  receives [A registration fee collected] under this chapter [Section
  394.048 by the commission] shall be deposited to the credit of the
  Texas highway beautification [state highway] fund account.
         SECTION 6.11.  (a) Subchapter A, Chapter 394,
  Transportation Code, is amended by adding Section 394.006 to read
  as follows:
         Sec. 394.006.  COMPLAINTS; RECORDS. (a) The department by
  rule shall establish procedures for accepting and resolving written
  complaints related to signs under this chapter. The rules must
  include:
               (1)  a process to make information available describing
  its procedures for complaint investigation and resolution,
  including making information about the procedures available on the
  department's Internet website;
               (2)  a simple form for filing complaints with the
  department;
               (3)  a system to prioritize complaints so that the most
  serious complaints receive attention before less serious
  complaints; and
               (4)  a procedure for compiling and reporting detailed
  annual statistics about complaints.
         (b)  The department shall provide on the department's
  Internet website information about the department's policies and
  procedures relating to complaint investigation and resolution. The
  department shall also provide that information to any person who
  requests a written copy.
         (c)  The department shall keep for at least 10 years an
  information file about each written complaint filed with the
  department that the department has authority to resolve. The
  department shall keep the following information for each complaint
  for the purpose of enforcing this chapter:
               (1)  the date the complaint is filed;
               (2)  the name of the person filing the complaint;
               (3)  the subject matter of the complaint;
               (4)  each person contacted in relation to the
  complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  if the department does not take action on the
  complaint, an explanation of the reasons that action was not taken.
         (d)  If a written complaint is filed with the department that
  the department has authority to resolve, the department, at least
  quarterly and until final disposition of the complaint, shall
  notify the parties to the complaint of the status of the complaint
  unless the notice would jeopardize an ongoing department
  investigation.
         (b)  The Texas Department of Transportation shall adopt
  rules under Section 394.006, Transportation Code, as added by this
  section, not later than September 1, 2010.
         SECTION 6.12.  The heading to Subchapter B, Chapter 394,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER B. LICENSE AND PERMIT FOR OFF-PREMISE SIGN
         SECTION 6.13.  (a) Subchapter B, Chapter 394,
  Transportation Code, is amended by adding Sections 394.0201,
  394.0202, 394.0203, 394.0204, 394.0205, 394.0206, 394.0207,
  394.027, 394.028, and 394.029 to read as follows:
         Sec. 394.0201.  ERECTING OFF-PREMISE SIGN WITHOUT LICENSE;
  OFFENSE. (a) A person commits an offense if the person wilfully
  erects or maintains an off-premise sign on a rural road without a
  license under this subchapter.
         (b)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $500 or more than $1,000. Each
  day of the proscribed conduct is a separate offense.
         (c)  A person is not required to obtain a license to erect or
  maintain an on-premise sign.
         Sec. 394.0202.  ISSUANCE AND PERIOD OF LICENSE. (a) The
  commission shall issue a license to a person who:
               (1)  files with the commission a completed application
  form within the time specified by the commission;
               (2)  pays the appropriate license fee; and
               (3)  files with the commission a surety bond.
         (b)  A license may be issued for one year or longer.
         (c)  At least 30 days before the date on which a person's
  license expires, the commission shall notify the person of the
  impending expiration. The notice must be in writing and sent to the
  person's last known address according to the records of the
  commission.
         Sec. 394.0203.  LICENSE FEE. The commission may set the
  amount of a license fee according to a scale graduated by the number
  of off-premise signs and units of outdoor advertising under Chapter
  391 owned by a license applicant.
         Sec. 394.0204.  SURETY BOND. (a) The surety bond required
  of an applicant for a license under Section 394.0202 must be:
               (1)  in the amount of $2,500 for each county in the
  state in which the person erects or maintains an off-premise sign;
  and
               (2)  payable to the commission for reimbursement for
  removal costs of an off-premise sign that the license holder
  unlawfully erects or maintains.
         (b)  A person may not be required to provide more than
  $10,000 in surety bonds.
         Sec. 394.0205.  RULES; FORMS. (a) The commission may adopt
  rules to implement Sections 394.0201(a), 394.0202, 394.0203,
  394.0204, and 394.0206.
         (b)  For the efficient management and administration of this
  chapter and to reduce the number of employees required to enforce
  this chapter, the commission shall adopt rules for issuing
  standardized forms that are for submission by license holders and
  applicants and that provide for an accurate showing of the number,
  location, or other information required by the commission for each
  license holder's or applicant's off-premise signs or outdoor
  advertising under Chapter 391.
         Sec. 394.0206.  REVOCATION OR SUSPENSION OF LICENSE; APPEAL.
  (a) The commission may revoke or suspend a license issued under
  this subchapter or place on probation a license holder whose
  license is suspended if the license holder violates this chapter or
  a rule adopted under this chapter. If the suspension of the license
  is probated, the department may require the license holder to
  report regularly to the commission on any matter that is the basis
  of the probation.
         (b)  The judicial appeal of the revocation or suspension of a
  license must be initiated not later than the 15th day after the date
  of the commission's action.
         (c)  The commission may adopt rules for the reissuance of a
  revoked or suspended license and may set fees for the reissuance.
         (d)  The commission may deny the renewal of a license
  holder's existing license if the license holder has not complied
  with the permit requirements of this chapter or Chapter 391.
         Sec. 394.0207.  APPLICABILITY OF LICENSE. In addition to
  authorizing a person to erect or maintain an off-premise sign, a
  license issued under this chapter authorizes a person to erect or
  maintain outdoor advertising under Chapter 391.
         Sec. 394.027.  FEE AMOUNTS. The license and permit fees
  required by this subchapter may not exceed an amount reasonably
  necessary to cover the administrative costs incurred to enforce
  this chapter.
         Sec. 394.028.  EXCEPTIONS FOR CERTAIN NONPROFIT
  ORGANIZATIONS. (a) The combined license and permit fees under this
  subchapter may not exceed $10 for an off-premise sign erected and
  maintained by a nonprofit organization in a municipality or a
  municipality's extraterritorial jurisdiction if the sign relates
  to or promotes only the municipality or a political subdivision
  whose jurisdiction is wholly or partly concurrent with the
  municipality.
         (b)  The nonprofit organization is not required to file a
  bond as provided by Section 394.0202(a)(3).
         Sec. 394.029.  DENIAL OF PERMIT; APPEAL. The commission may
  create a process by which an applicant may appeal a denial of a
  permit under this subchapter.
         (b)  The change in law made by Section 394.0201,
  Transportation Code, as added by this section, applies only to an
  off-premise sign erected or for which the permit expires on or after
  the effective date of this Act. An off-premise sign for which a
  permit is issued before the effective date of this Act is covered by
  the law in effect when the permit was issued, and the former law is
  continued in effect for that purpose.
         SECTION 6.14.  Section 394.050, Transportation Code, is
  amended to read as follows:
         Sec. 394.050.  [BOARD OF] VARIANCE. The executive director
  or a person designated by the executive director [commission shall
  provide for a board of variance that], in an appropriate case and
  subject to an appropriate condition or safeguard, may make a
  special exception to this chapter regarding a permit for an
  off-premise outdoor sign on a rural road.
         SECTION 6.15.  Section 394.081(c), Transportation Code, is
  amended to read as follows:
         (c)  A civil penalty collected under this section shall be
  deposited to the credit of the Texas highway beautification [state
  highway] fund account if collected by the attorney general and to
  the credit of the county road and bridge fund if collected by a
  district or county attorney.
         SECTION 6.16.  Sections 394.082(a), (d), and (e),
  Transportation Code, are amended to read as follows:
         (a)  In lieu of a suit to collect a civil penalty, the
  commission, after notice and an opportunity for a hearing before
  the commission, may impose an administrative penalty against a
  person who [intentionally] violates this chapter or a rule adopted
  by the commission under this chapter. Each day a violation
  continues is a separate violation.
         (d)  Judicial review of an appeal of an administrative
  penalty imposed under this section is under the substantial
  evidence rule [by trial de novo].
         (e)  An administrative penalty collected under this section
  shall be deposited to the credit of the Texas highway
  beautification [state highway] fund account.
         SECTION 6.17.  Section 391.065(c), Transportation Code, is
  repealed.
  ARTICLE 7. PUBLIC TRANSPORTATION
         SECTION 7.01.  Section 301.063(f), Labor Code, is repealed.
  ARTICLE 8. TEXAS DEPARTMENT OF MOTOR VEHICLES
  PART 1. GENERAL PROVISIONS
         SECTION 8.1.01.  Title 7, Transportation Code, is amended by
  adding Subtitle M to read as follows:
  SUBTITLE M. TEXAS DEPARTMENT OF MOTOR VEHICLES
  CHAPTER 1001. ORGANIZATION OF DEPARTMENT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1001.001.  DEFINITIONS. In this subtitle:
               (1)  "Board" means the board of the department.
               (2)  "Department" means the Texas Department of Motor
  Vehicles.
         Sec. 1001.002.  CREATION OF DEPARTMENT; DUTIES. (a)  The
  department is created as an agency of this state.
         (b)  In addition to the other duties required of the Texas
  Department of Motor Vehicles, the department shall administer and
  enforce:
               (1)  Subtitle A;
               (2)  Chapters 642, 643, 645, 646, and 648; and
               (3)  Chapters 2301 and 2302, Occupations Code.
         Sec. 1001.003.  COMPOSITION OF DEPARTMENT. The department
  is composed of an executive director appointed by the board and
  other employees required to efficiently implement:
               (1)  this subtitle;
               (2)  other applicable vehicle laws of this state; and
               (3)  other laws that grant jurisdiction to or are
  applicable to the department.
         Sec. 1001.004.  DIVISIONS. The board shall organize the
  department into divisions to accomplish the department's functions
  and the duties assigned to it, including divisions for:
               (1)  administration;
               (2)  motor carriers;
               (3)  motor vehicle distribution; and
               (4)  vehicle titles and registration.
         Sec. 1001.005.  SUNSET PROVISION. The department is subject
  to Chapter 325, Government Code (Texas Sunset Act). Unless
  continued in existence as provided by that chapter, the department
  is abolished September 1, 2015.
         Sec. 1001.006.  DEFENSE BY ATTORNEY GENERAL. The attorney
  general shall defend an action brought against the board or the
  department or an action brought against an employee of the
  department as a result of the employee's official act or omission,
  regardless of whether at the time of the institution of the action
  that person has terminated service with the department.
  [Sections 1001.007-1001.020 reserved for expansion]
  SUBCHAPTER B. BOARD OF DEPARTMENT OF MOTOR VEHICLES
         Sec. 1001.021.  BOARD. (a)  The board consists of nine
  members appointed by the governor with the advice and consent of the
  senate.
         (b)  Three members must be persons who hold a dealer's
  license issued under Chapter 2301, Occupations Code, of whom two
  must be franchised dealers of different classes and one must be an
  independent dealer; one member must be a representative of a
  manufacturer or distributor that holds a license issued under
  Chapter 2301, Occupations Code; one member must be a tax
  assessor-collector; one member must be a representative of a law
  enforcement agency of a county or municipality; and one member must
  be a representative of the motor carrier industry. The remaining
  members must be public members.
         (c)  Except as necessary to comply with Subsection (b), a
  person is not eligible for appointment as a member of the board if
  the person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization that is regulated by or
  receives funds from the department;
               (2)  directly or indirectly owns or controls more than
  10 percent interest in a business entity or other organization that
  is regulated by or receives funds from the department;
               (3)  uses or receives a substantial amount of tangible
  goods, services, or funds from the department, other than
  compensation or reimbursement authorized by law for board
  membership, attendance, or expenses; or
               (4)  is registered, certified, or licensed by the
  department.
         (d)  A person required to register as a lobbyist under
  Chapter 305, Government Code, because of the person's activities
  for compensation on behalf of a profession related to the operation
  of the department may not serve as a member of the board.
         (e)  Appointments to the board shall be made without regard
  to race, color, disability, sex, religion, age, or national origin
  of the appointees and shall reflect the diversity of the population
  of the state as a whole.
         Sec. 1001.022.  TERMS. Members of the board serve staggered
  six-year terms, with the terms of either one or two members expiring
  February 1 of each odd-numbered year.
         Sec. 1001.023.  CHAIR AND VICE CHAIR; DUTIES. (a)  The
  governor shall appoint one of the board's members chair of the
  board. The board shall elect one of its members vice chair of the
  board. A chair or vice chair serves at the pleasure of the board.
         (b)  The chair shall:
               (1)  preside over board meetings, make rulings on
  motions and points of order, and determine the order of business;
               (2)  represent the department in dealing with the
  governor;
               (3)  report to the governor on the state of affairs of
  the department at least quarterly;
               (4)  report to the board the governor's suggestions for
  department operations;
               (5)  report to the governor on efforts, including
  legislative requirements, to maximize the efficiency of department
  operations through the use of private enterprise;
               (6)  periodically review the department's
  organizational structure and submit recommendations for structural
  changes to the governor, the board, and the Legislative Budget
  Board;
               (7)  designate one or more employees of the department
  as a civil rights division of the department and receive regular
  reports from the division on the department's efforts to comply
  with civil rights legislation and administrative rules;
               (8)  create subcommittees, appoint board members to
  subcommittees, and receive the reports of subcommittees to the
  board as a whole;
               (9)  appoint a member of the board to act in the chair's
  absence; and
               (10)  serve as the departmental liaison with the
  governor and the Office of State-Federal Relations to maximize
  federal funding for transportation.
         Sec. 1001.024.  BOARD MEETINGS. The board shall hold
  regular meetings at least quarterly and special meetings at the
  call of the chair. Board members shall attend the meetings of the
  board. The chair shall oversee the preparation of an agenda for
  each meeting and ensure that a copy is provided to each board member
  at least seven days before the meeting.
         Sec. 1001.025.  RECOMMENDATIONS TO LEGISLATURE. (a)  The
  board shall consider ways in which the department's operations may
  be improved and may periodically report to the legislature
  concerning potential statutory changes that would improve the
  operation of the department.
         (b)  On behalf of the board, the chair shall report to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the presiding officers of relevant
  legislative committees on legislative recommendations adopted by
  the board and relating to the operation of the department.
         Sec. 1001.026.  COMPENSATION.  A member of the board is
  entitled to compensation as provided by the General Appropriations
  Act. If compensation for board members is not provided by that Act,
  each member is entitled to reimbursement for actual and necessary
  expenses incurred in performing functions as a member of the board.
         Sec. 1001.027.  GROUNDS FOR REMOVAL. (a)  It is a ground for
  removal from the board if a board member:
               (1)  does not have at the time of appointment or
  maintain during service on the board the qualifications required by
  Section 1001.021;
               (2)  violates a prohibition provided by Section
  1001.021;
               (3)  cannot discharge the member's duties for a
  substantial part of the term for which the member is appointed
  because of illness or disability; or
               (4)  is absent from more than half of the regularly
  scheduled board meetings that the board member is eligible to
  attend during a calendar year, unless the absence is excused by
  majority vote of the board.
         (b)  The validity of an action of the board is not affected by
  the fact that it is taken when a ground for removal of a board member
  exists.
         (c)  If the executive director of the department knows that a
  potential ground for removal exists, the director shall notify the
  chair of the board of the ground, and the chair shall notify the
  governor and the attorney general that a potential ground for
  removal exists. If the potential ground for removal relates to the
  chair, the director shall notify another board member, who shall
  notify the governor and the attorney general that a potential
  ground for removal exists.
         Sec. 1001.028.  CONFLICT OF INTEREST. (a)  A member of the
  board shall disclose in writing to the executive director if the
  member has an interest in a matter before the board or has a
  substantial financial interest in an entity that has a direct
  interest in the matter.
         (b)  The member shall recuse himself or herself from the
  board's deliberations and actions on the matter in Subsection (a)
  and may not participate in the board's decision on the matter.
         (c)  A person has a substantial financial interest in an
  entity if the person:
               (1)  is an employee, member, director, or officer of
  the entity; or
               (2)  owns or controls, directly or indirectly, more
  than a five percent interest in the entity.
         Sec. 1001.029.  INFORMATION ON QUALIFICATIONS AND CONDUCT.
  The department shall provide to the members of the board, as often
  as necessary, information concerning the members' qualifications
  for office and their responsibilities under applicable laws
  relating to standards of conduct for state officers.
         Sec. 1001.030.  TRAINING ON DEPARTMENT AND CERTAIN LAWS
  RELATING TO DEPARTMENT. (a)  To be eligible to take office as a
  member of the board, a person appointed to the board must complete
  at least one course of a training program that complies with this
  section.
         (b)  The training program must provide information to the
  person regarding:
               (1)  this subchapter;
               (2)  the programs operated by the department;
               (3)  the role and functions of the department;
               (4)  the rules of the department with an emphasis on the
  rules that relate to disciplinary and investigatory authority;
               (5)  the current budget for the department;
               (6)  the results of the most recent formal audit of the
  department;
               (7)  the requirements of the:
                     (A)  open meetings law, Chapter 551, Government
  Code;
                     (B)  open records law, Chapter 552, Government
  Code; and
                     (C)  administrative procedure law, Chapter 2001,
  Government Code;
               (8)  the requirements of the conflict of interest laws
  and other laws relating to public officials; and
               (9)  any applicable ethics policies adopted by the
  board or the Texas Ethics Commission.
         (c)  A person appointed to the board is entitled to
  reimbursement for travel expenses incurred in attending the
  training program, as provided by the General Appropriations Act and
  as if the person were a member of the board.
         Sec. 1001.031.  ADVISORY COMMITTEES. (a)  The board shall
  establish separate advisory committees for the motor carrier, motor
  vehicles, and vehicle titles and registration divisions to make
  recommendations to the board or the executive director on the
  operation of the applicable division. A committee has the
  purposes, powers, and duties, including the manner of reporting its
  work, prescribed by the board. A committee and each committee
  member serves at the will of the board.
         (b)  The board shall appoint persons to each advisory
  committee who:
               (1)  are selected from a list provided by the executive
  director; and
               (2)  have knowledge about and interests in, and
  represent a broad range of viewpoints about, the work of the
  committee or applicable division.
         (c)  The advisory committee for the motor vehicles division
  must include a member to represent motor vehicle manufacturers and
  a member to represent the recreational vehicle industry.
         (d)  The advisory committee for the motor carrier division
  must include a member to represent the motor transportation
  industry.
         (e)  A member of an advisory committee may not be compensated
  by the board or the department for committee service.
  [Sections 1001.032-1001.040 reserved for expansion]
  SUBCHAPTER C. PERSONNEL
         Sec. 1001.041.  DEPARTMENT PERSONNEL. (a)  Subject to the
  General Appropriations Act or other law, the executive director
  shall appoint deputies, assistants, and other personnel as
  necessary to carry out the powers and duties of the department under
  this code, other applicable vehicle laws of this state, and other
  laws granting jurisdiction or applicable to the department.
         (b)  A person appointed under this section must have the
  professional and administrative experience necessary to qualify
  the person for the position to which the person is appointed.
         Sec. 1001.042.  DIVISION OF RESPONSIBILITIES. The board
  shall develop and implement policies that clearly define the
  respective responsibilities of the director and the staff of the
  department.
         Sec. 1001.043.  EQUAL EMPLOYMENT OPPORTUNITY POLICY;
  REPORT. (a)  The executive director or the director's designee
  shall prepare and maintain a written policy statement to ensure
  implementation of a program of equal employment opportunity under
  which all personnel transactions are made without regard to race,
  color, disability, sex, religion, age, or national origin. The
  policy statement must include:
               (1)  personnel policies, including policies relating
  to recruitment, evaluation, selection, appointment, training, and
  promotion of personnel that are in compliance with Chapter 21,
  Labor Code;
               (2)  a comprehensive analysis of the department
  workforce that meets federal and state guidelines;
               (3)  procedures by which a determination can be made of
  significant underuse in the department workforce of all persons for
  whom federal or state guidelines encourage a more equitable
  balance; and
               (4)  reasonable methods to appropriately address those
  areas of significant underuse.
         (b)  A policy statement prepared under this section must:
               (1)  cover an annual period;
               (2)  be updated annually;
               (3)  be reviewed by the civil rights division of the
  Texas Workforce Commission for compliance with Subsection (a); and
               (4)  be filed with the governor.
         (c)  The governor shall deliver a biennial report to the
  legislature based on the information received under Subsection (b).
  The report may be made separately or as a part of other biennial
  reports made to the legislature.
         Sec. 1001.044.  QUALIFICATIONS AND STANDARDS OF CONDUCT.
  The executive director shall provide to department employees, as
  often as necessary, information regarding their:
               (1)  qualification for office or employment under this
  subtitle; and
               (2)  responsibilities under applicable laws relating
  to standards of conduct for state employees.
         Sec. 1001.045.  CAREER LADDER PROGRAM; PERFORMANCE
  EVALUATIONS. (a)  The executive director or the director's
  designee shall develop an intra-agency career ladder program. The
  program must require intra-agency posting of all nonentry level
  positions concurrently with any public posting.
         (b)  The executive director or the director's designee shall
  develop a system of annual performance evaluations. All merit pay
  for department employees must be based on the system established
  under this subsection.
  CHAPTER 1002. RULES
         Sec. 1002.001.  GENERAL RULEMAKING AUTHORITY. The board may
  adopt any rules necessary and appropriate to implement the powers
  and duties of the department under this code and other laws of this
  state.
         Sec. 1002.002.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING. The board may not adopt rules restricting
  advertising or competitive bidding by a person regulated by the
  department except to prohibit false, misleading, or deceptive
  practices by the person.
  CHAPTER 1003. DEPARTMENT PROCEDURES
         Sec. 1003.001.  APPLICABILITY OF CERTAIN LAWS. Except as
  specifically provided by law, the department is subject to Chapters
  2001 and 2002, Government Code.
         Sec. 1003.002.  SUMMARY PROCEDURES FOR ROUTINE MATTERS.
  (a)  The board or the department by rule may:
               (1)  create a summary procedure for routine matters;
  and
               (2)  designate department activities that otherwise
  would be subject to Chapter 2001, Government Code, as routine
  matters to be handled under the summary procedure.
         (b)  An activity may be designated as a routine matter only
  if the activity is:
               (1)  voluminous;
               (2)  repetitive;
               (3)  believed to be noncontroversial; and
               (4)  of limited interest to anyone other than persons
  immediately involved in or affected by the proposed department
  action.
         (c)  The rules may establish procedures different from those
  contained in Chapter 2001, Government Code. The procedures must
  require, for each party directly involved, notice of a proposed
  negative action not later than the fifth day before the date the
  action is proposed to be taken.
         (d)  A rule adopted by the board under this section may
  provide for the delegation of authority to take action on a routine
  matter to a salaried employee of the department designated by the
  board.
         Sec. 1003.003.  REVIEW OF ACTION ON ROUTINE MATTER. (a)  A
  person directly or indirectly affected by an action of the board or
  the department on a routine matter taken under the summary
  procedure adopted under Section 1003.002 is entitled to a review of
  the action under Chapter 2001, Government Code.
         (b)  The person must apply to the board not later than the
  60th day after the date of the action to be entitled to the review.
         (c)  The timely filing of the application for review
  immediately stays the action pending a hearing on the merits.
         (d)  The board may adopt rules relating to an application for
  review under this section and consideration of the application.
         Sec. 1003.004.  INFORMAL DISPOSITION OF CERTAIN CONTESTED
  CASES. The board or the department, as applicable, may, on written
  agreement or stipulation of each party and any intervenor,
  informally dispose of a contested case in accordance with Section
  2001.056, Government Code, notwithstanding any provision of this
  code or other law that requires a hearing before the board or the
  department, as applicable.
  CHAPTER 1004. PUBLIC ACCESS
         Sec. 1004.001.  ACCESS TO PROGRAMS AND FACILITIES. (a)  The
  department shall prepare and maintain a written plan that describes
  how a person who does not speak English may be provided reasonable
  access to the department's programs.
         (b)  The department shall comply with federal and state laws
  for program and facility accessibility.
         Sec. 1004.002.  PUBLIC COMMENT. The board and the
  department shall develop and implement policies that provide the
  public with a reasonable opportunity to appear before the board or
  the department and to speak on any issue under the jurisdiction of
  the board or the department.
         Sec. 1004.003.  PUBLIC REPRESENTATION ON ADVISORY BODY.
  (a)  At least one-half of the membership of each advisory body
  appointed by the board, other than an advisory body whose
  membership is determined by this code or by other law, must
  represent the general public.
         (b)  A public representative may not be:
               (1)  an officer, director, or employee of a business
  entity regulated by the department;
               (2)  a person required to register with the Texas
  Ethics Commission under Chapter 305, Government Code; or
               (3)  a person related within the second degree by
  affinity or consanguinity to a person described by Subdivision (1)
  or (2).
  CHAPTER 1005. STANDARDS OF CONDUCT
         Sec. 1005.001.  APPLICATION OF LAW RELATING TO ETHICAL
  CONDUCT. The board, the executive director, and each employee or
  agent of the department is subject to the code of ethics and the
  standard of conduct imposed by Chapter 572, Government Code, and
  any other law regulating the ethical conduct of state officers and
  employees.
  PART 2. TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS
  DEPARTMENT OF TRANSPORTATION
  SUBPART A. GENERAL PROVISIONS AND ADMINISTRATION
         SECTION 8.2A.01.  Section 201.202(a), Transportation Code,
  is amended to read as follows:
         (a)  The commission shall organize the department into
  divisions to accomplish the department's functions and the duties
  assigned to it, including divisions for:
               (1)  aviation;
               (2)  highways and roads; and
               (3)  public transportation[; and
               [(4)  motor vehicle titles and registration].
         SECTION 8.2A.02.  Section 201.931(2), Transportation Code,
  is amended to read as follows:
               (2)  "License" includes:
                     (A)  a permit issued by the department that
  authorizes the operation of a vehicle and its load or a combination
  of vehicles and load exceeding size or weight limitations; and
                     (B)  [a motor carrier registration issued under
  Chapter 643;
                     [(C)     a vehicle storage facility license issued
  under Chapter 2303, Occupations Code;
                     [(D)]  a license or permit for outdoor advertising
  issued under Chapter 391 or 394[;
                     [(E)     a salvage vehicle dealer or agent license
  issued under Chapter 2302, Occupations Code;
                     [(F)     specially designated or specialized license
  plates issued under Subchapters E and F, Chapter 502; and
                     [(G)     an apportioned registration issued
  according to the International Registration Plan under Section
  502.054].
  SUBPART B. STATE HIGHWAY TOLL PROJECTS
         SECTION 8.2B.01.  Sections 228.055(b) and (h),
  Transportation Code, are amended to read as follows:
         (b)  The department may impose and collect the
  administrative fee, so as to recover the cost of collecting the
  unpaid toll, not to exceed $100. The department shall send a
  written notice of nonpayment to the registered owner of the vehicle
  at that owner's address as shown in the vehicle registration
  records of the Texas Department of Motor Vehicles [department] by
  first class mail and may require payment not sooner than the 30th
  day after the date the notice was mailed. The registered owner
  shall pay a separate toll and administrative fee for each event of
  nonpayment under Section 228.054.
         (h)  In this section, "registered owner" means the owner of a
  vehicle as shown on the vehicle registration records of the Texas
  Department of Motor Vehicles [department] or the analogous
  department or agency of another state or country.
         SECTION 8.2B.02.  Section 228.056(b), Transportation Code,
  is amended to read as follows:
         (b)  In the prosecution of an offense under Section
  228.055(c), (d), or (e):
               (1)  it is presumed that the notice of nonpayment was
  received on the fifth day after the date of mailing;
               (2)  a computer record of the Texas Department of Motor
  Vehicles [department] of the registered owner of the vehicle is
  prima facie evidence of its contents and that the defendant was the
  registered owner of the vehicle when the underlying event of
  nonpayment under Section 228.054 occurred; and
               (3)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the underlying event of
  nonpayment under Section 228.054 is prima facie evidence of its
  contents and that the defendant was the lessee of the vehicle when
  the underlying event of nonpayment under Section 228.054 occurred.
  SUBPART C. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND
  HIGHWAYS IN CERTAIN COUNTIES
         SECTION 8.2C.01.  Sections 284.0701(b), (e), and (h),
  Transportation Code, are amended to read as follows:
         (b)  The county may impose and collect the administrative
  cost so as to recover the expense of collecting the unpaid toll, not
  to exceed $100. The county shall send a written notice of
  nonpayment to the registered owner of the vehicle at that owner's
  address as shown in the vehicle registration records of the Texas
  Department of Motor Vehicles [department] by first-class mail not
  later than the 30th day after the date of the alleged failure to pay
  and may require payment not sooner than the 30th day after the date
  the notice was mailed. The registered owner shall pay a separate
  toll and administrative cost for each event of nonpayment under
  Section 284.070.
         (e)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle transferred ownership
  of the vehicle to another person before the event of nonpayment
  under Section 284.070 occurred, submitted written notice of the
  transfer to the Texas Department of Motor Vehicles [department] in
  accordance with Section 520.023, and before the 30th day after the
  date the notice of nonpayment is mailed, provides to the county the
  name and address of the person to whom the vehicle was transferred.
  If the former owner of the vehicle provides the required
  information within the period prescribed, the county may send a
  notice of nonpayment to the person to whom ownership of the vehicle
  was transferred at the address provided by the former owner by
  first-class mail before the 30th day after the date of receipt of
  the required information from the former owner. The subsequent
  owner of the vehicle for which the proper toll was not paid who is
  mailed a written notice of nonpayment under this subsection and
  fails to pay the proper toll and administrative cost within the time
  specified by the notice of nonpayment commits an offense. The
  subsequent owner shall pay a separate toll and administrative cost
  for each event of nonpayment under Section 284.070. Each failure to
  pay a toll or administrative cost under this subsection is a
  separate offense.
         (h)  In this section, "registered owner" means the owner of a
  vehicle as shown on the vehicle registration records of the Texas
  Department of Motor Vehicles [department] or the analogous
  department or agency of another state or country.
  SUBPART D. CERTIFICATE OF TITLE ACT
         SECTION 8.2D.01.  Section 501.002(3), Transportation Code,
  is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART E. REGISTRATION OF VEHICLES
         SECTION 8.2E.01.  Section 502.001, Transportation Code, is
  amended by adding Subdivision (1-a) and amending Subdivision (3) to
  read as follows:
               (1-a)  "Board" means the board of the Texas Department
  of Motor Vehicles.
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2E.02.  Section 502.051, Transportation Code, is
  amended to read as follows:
         Sec. 502.051.  DEPOSIT OF REGISTRATION FEES IN STATE HIGHWAY
  FUND. Except as otherwise provided by this chapter, the board
  [Texas Transportation Commission] and the department shall deposit
  all money received from registration fees in the state treasury to
  the credit of the state highway fund.
         SECTION 8.2E.03.  Section 502.052(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall prepare the designs and
  specifications of license plates and devices selected by the board
  [Texas Transportation Commission] to be used as the registration
  insignia.
         SECTION 8.2E.04.  Sections 502.053(a) and (b),
  Transportation Code, are amended to read as follows:
         (a)  The department [Texas Department of Transportation]
  shall reimburse the Texas Department of Criminal Justice for the
  cost of manufacturing license plates or registration insignia as
  the license plates or insignia and the invoice for the license
  plates or insignia are delivered to the department [Texas
  Department of Transportation].
         (b)  When manufacturing is started, the Texas Department of
  Criminal Justice, the department [Texas Department of
  Transportation], and the comptroller, after negotiation, shall set
  the price to be paid for each license plate or insignia. The price
  must be determined from:
               (1)  the cost of metal, paint, and other materials
  purchased;
               (2)  the inmate maintenance cost per day;
               (3)  overhead expenses;
               (4)  miscellaneous charges; and
               (5)  a previously approved amount of profit for the
  work.
         SECTION 8.2E.05.  Section 502.1515, Transportation Code, is
  amended to read as follows:
         Sec. 502.1515.  OUTSOURCING PRODUCTION OF RENEWAL NOTICES;
  PAID ADVERTISING.  The board [commission] may authorize the
  department to enter into a contract with a private vendor to produce
  and distribute motor vehicle registration renewal notices. The
  contract may provide for the inclusion of paid advertising in the
  registration renewal notice packet.
         SECTION 8.2E.06.  Section 502.352(c), Transportation Code,
  is amended to read as follows:
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the county assessor-collector, the
  department, or the department's wire service agent, if the
  department has a wire service agent;
               (2)  paying a fee of $25 for a 72-hour permit or $50 for
  a 144-hour permit:
                     (A)  in cash;
                     (B)  by postal money order;
                     (C)  by certified check;
                     (D)  by wire transfer through the department's
  wire service agent, if any;
                     (E)  by an escrow account; or
                     (F)  where the service is provided, by a credit
  card issued by:
                           (i)  a financial institution chartered by a
  state or the United States; or
                           (ii)  a nationally recognized credit
  organization approved by the board [Texas Transportation
  Commission];
               (3)  paying a discount or service charge for a credit
  card payment or escrow account, in addition to the fee; and
               (4)  furnishing to the county assessor-collector, the
  department, or the department's wire service agent, evidence of
  financial responsibility for the vehicle that complies with
  Sections 502.153(c) and 601.168(a) and is written by an insurance
  company or surety company authorized to write motor vehicle
  liability insurance in this state.
         SECTION 8.2E.07.  Section 502.355(h), Transportation Code,
  is amended to read as follows:
         (h)  A person operating a vehicle under a permit issued under
  this section commits an offense if the person:
               (1)  transports farm products to a place of market,
  storage, or processing or a railhead or seaport that is farther from
  the place of production or point of entry, as appropriate, than the
  distance provided for in the permit; or
               (2)  follows a route other than that prescribed by the
  board [Texas Transportation Commission].
  SUBPART F. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES
         SECTION 8.2F.01.  Sections 503.001(2) and (5),
  Transportation Code, are amended to read as follows:
               (2)  "Commission" means the board of the Texas
  Department of Motor Vehicles [Texas Transportation Commission].
               (5)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART G. SPECIALTY LICENSE PLATES
         SECTION 8.2G.01.  Section 504.001(a), Transportation Code,
  is amended to read as follows:
         (a)  In this chapter:
               (1)  "Board" means the board of the Texas Department of
  Motor Vehicles [, "commission" and "director" have the meanings
  assigned by Section 201.001].
               (2)  "Department" means the Texas Department of Motor
  Vehicles.
         SECTION 8.2G.02.  Section 504.004, Transportation Code, is
  amended to read as follows:
         Sec. 504.004.  RULES AND FORMS. The board [commission] may
  adopt rules and the department may issue forms to implement and
  administer this chapter.
         SECTION 8.2G.03.  Sections 504.851(b), (c), and (d),
  Transportation Code, are amended to read as follows:
         (b)  Instead of the fees established by Section 504.101(c),
  the board [commission] by rule shall establish fees for the
  issuance or renewal of personalized license plates that are
  marketed and sold by the private vendor.  Fees must be reasonable
  and not less than the greater of:
               (1)  the amounts necessary to allow the department to
  recover all reasonable costs to the department associated with the
  evaluation of the competitive sealed proposals received by the
  department and with the implementation and enforcement of the
  contract, including direct, indirect, and administrative costs; or
               (2)  the amount established by Section 504.101(c).
         (c)  The board [commission] by rule shall establish the fees
  for the issuance or renewal of souvenir license plates, specialty
  license plates, or souvenir or specialty license plates that are
  personalized that are marketed and sold by the private
  vendor.  Fees must be reasonable and not less than the amounts
  necessary to allow the department to recover all reasonable costs
  to the department associated with the evaluation of the competitive
  sealed proposals received by the department and with the
  implementation and enforcement of the contract, including direct,
  indirect, and administrative costs.  A fee established under this
  subsection is in addition to:
               (1)  the registration fee and any optional registration
  fee prescribed by this chapter for the vehicle for which specialty
  license plates are issued;
               (2)  any additional fee prescribed by this subchapter
  for the issuance of specialty license plates for that vehicle; and
               (3)  any additional fee prescribed by this subchapter
  for the issuance of personalized license plates for that vehicle.
         (d)  At any time as necessary to comply with Subsection (b)
  or (c), the board [commission] may increase or decrease the amount
  of a fee established under the applicable subsection.
  SUBPART H. MISCELLANEOUS PROVISIONS
         SECTION 8.2H.01.  Section 520.001, Transportation Code, is
  amended to read as follows:
         Sec. 520.001.  DEFINITION. In this chapter, "department"
  means the Texas Department of Motor Vehicles [Transportation].
  SUBPART I. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES
         SECTION 8.2I.01.  Section 551.302, Transportation Code, is
  amended to read as follows:
         Sec. 551.302.  REGISTRATION. The Texas Department of Motor
  Vehicles [Transportation] may adopt rules relating to the
  registration and issuance of license plates to neighborhood
  electric vehicles.
  SUBPART J. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
         SECTION 8.2J.01.  Section 601.023, Transportation Code, is
  amended to read as follows:
         Sec. 601.023.  PAYMENT OF STATUTORY FEES. The department
  may pay:
               (1)  a statutory fee required by the Texas Department
  of Motor Vehicles [Transportation] for a certified abstract or in
  connection with suspension of a vehicle registration; or
               (2)  a statutory fee payable to the comptroller for
  issuance of a certificate of deposit required by Section 601.122.
         SECTION 8.2J.02.  Section 601.451, Transportation Code, as
  added by Chapter 892 (S.B. 1670), Acts of the 79th Legislature,
  Regular Session, 2005, is amended to read as follows:
         Sec. 601.451.  DEFINITION. In this subchapter,
  "implementing agencies" means:
               (1)  the department;
               (2)  the Texas Department of Motor Vehicles
  [Transportation];
               (3)  the Texas Department of Insurance; and
               (4)  the Department of Information Resources.
         SECTION 8.2J.03.  Subchapter N, Chapter 601, Transportation
  Code, as added by Chapter 1325 (H.B. 3588), Acts of the 78th
  Legislature, Regular Session, 2003, is repealed.
  SUBPART K. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR
  VEHICLES
         SECTION 8.2K.01.  Section 642.002(d), Transportation Code,
  is amended to read as follows:
         (d)  The Texas Department of Motor Vehicles [Transportation]
  by rule may prescribe additional requirements regarding the form of
  the markings required by Subsection (a)(2) that are not
  inconsistent with that subsection.
  SUBPART L. MOTOR CARRIER REGISTRATION
         SECTION 8.2L.01.  Section 643.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART M. SINGLE STATE REGISTRATION
         SECTION 8.2M.01.  Section 645.001, Transportation Code, is
  amended to read as follows:
         Sec. 645.001.  FEDERAL MOTOR CARRIER REGISTRATION. The
  Texas Department of Motor Vehicles [Transportation] may, to the
  fullest extent practicable, participate in a federal motor carrier
  registration program under the unified carrier registration system
  as defined by Section 643.001 or a [the] single state registration
  system established under federal law [49 U.S.C. Section 14504].
  SUBPART N. MOTOR TRANSPORTATION BROKERS
         SECTION 8.2N.01.  Section 646.003(a), Transportation Code,
  is amended to read as follows:
         (a)  A person may not act as a motor transportation broker
  unless the person provides a bond to the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART O. FOREIGN COMMERCIAL MOTOR TRANSPORTATION
         SECTION 8.2O.01.  Section 648.002, Transportation Code, is
  amended to read as follows:
         Sec. 648.002.  RULES. In addition to rules required by this
  chapter, the Texas Department of Motor Vehicles [Transportation],
  the Department of Public Safety, and the Texas Department of
  Insurance may adopt other rules to carry out this chapter.
  SUBPART P. PRIVILEGED PARKING
         SECTION 8.2P.01.  Section 681.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART Q. ADMINISTRATIVE ADJUDICATION OF VEHICLE PARKING
  AND STOPPING OFFENSES
         SECTION 8.2Q.01.  Section 682.008, Transportation Code, is
  amended to read as follows:
         Sec. 682.008.  PRESUMPTIONS. In an administrative
  adjudication hearing under this chapter:
               (1)  it is presumed that the registered owner of the
  motor vehicle is the person who parked or stopped the vehicle at the
  time and place of the offense charged; and
               (2)  the Texas Department of Motor Vehicles'
  [Transportation's] computer-generated record of the registered
  vehicle owner is prima facie evidence of the contents of the record.
  SUBPART R. ABANDONED MOTOR VEHICLES
         SECTION 8.2R.01.  Section 683.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART S. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS
         SECTION 8.2S.01.  Section 702.001(1), Transportation Code,
  is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  SUBPART T. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM
         SECTION 8.2T.01.  Section 707.001(2), Transportation Code,
  is amended to read as follows:
               (2)  "Owner of a motor vehicle" means the owner of a
  motor vehicle as shown on the motor vehicle registration records of
  the Texas Department of Motor Vehicles [Transportation] or the
  analogous department or agency of another state or country.
         SECTION 8.2T.02.  Section 707.011(b), Transportation Code,
  is amended to read as follows:
         (b)  Not later than the 30th day after the date the violation
  is alleged to have occurred, the designated department, agency, or
  office of the local authority or the entity with which the local
  authority contracts under Section 707.003(a)(1) shall mail the
  notice of violation to the owner at:
               (1)  the owner's address as shown on the registration
  records of the Texas Department of Motor Vehicles [Transportation];
  or
               (2)  if the vehicle is registered in another state or
  country, the owner's address as shown on the motor vehicle
  registration records of the department or agency of the other state
  or country analogous to the Texas Department of Motor Vehicles
  [Transportation].
         SECTION 8.2T.03.  Section 707.017, Transportation Code, is
  amended to read as follows:
         Sec. 707.017.  ENFORCEMENT. If the owner of a motor vehicle
  is delinquent in the payment of a civil penalty imposed under this
  chapter, the county assessor-collector or the Texas Department of
  Motor Vehicles [Transportation] may refuse to register a motor
  vehicle alleged to have been involved in the violation.
  SUBPART U. SALE OR LEASE OF MOTOR VEHICLES
         SECTION 8.2U.01.  Section 2301.002(9), Occupations Code, is
  amended to read as follows:
               (9)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2U.02.  Section 2301.002(33), Occupations Code,
  is repealed.
  SUBPART V. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY
         SECTION 8.2V.01.  Section 1(3), Article 4413(37), Revised
  Statutes, is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.2V.02.  Section 2, Article 4413(37), Revised
  Statutes, is amended to read as follows:
         Sec. 2.  The Automobile Burglary and Theft Prevention
  Authority is established in the Texas Department of Motor Vehicles
  [Transportation]. The authority is not an advisory body to the
  Texas Department of Motor Vehicles [Transportation].
  PART 3. CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF
  TRANSPORTATION IN OTHER CODES
  SUBPART A. BUSINESS & COMMERCE CODE
         SECTION 8.3A.01.  Section 51.003(b), Business & Commerce
  Code, as effective April 1, 2009, is amended to read as follows:
         (b)  In this chapter, "business opportunity" does not
  include:
               (1)  the sale or lease of an established and ongoing
  business or enterprise that has actively conducted business before
  the sale or lease, whether composed of one or more than one
  component business or enterprise, if the sale or lease represents
  an isolated transaction or series of transactions involving a bona
  fide change of ownership or control of the business or enterprise or
  liquidation of the business or enterprise;
               (2)  a sale by a retailer of goods or services under a
  contract or other agreement to sell the inventory of one or more
  ongoing leased departments to a purchaser who is granted the right
  to sell the goods or services within or adjoining a retail business
  establishment as a department or division of the retail business
  establishment;
               (3)  a transaction that is:
                     (A)  regulated by the Texas Department of
  Licensing and Regulation, the Texas Department of Insurance, the
  Texas Real Estate Commission, or the director of the Motor Vehicle
  Division of the Texas Department of Motor Vehicles
  [Transportation]; and
                     (B)  engaged in by a person licensed by one of
  those agencies;
               (4)  a real estate syndication;
               (5)  a sale or lease to a business enterprise that also
  sells or leases products, equipment, or supplies or performs
  services:
                     (A)  that are not supplied by the seller; and
                     (B)  that the purchaser does not use with the
  seller's products, equipment, supplies, or services;
               (6)  the offer or sale of a franchise as described by
  the Petroleum Marketing Practices Act (15 U.S.C. Section 2801 et
  seq.) and its subsequent amendments;
               (7)  the offer or sale of a business opportunity if the
  seller:
                     (A)  has a net worth of $25 million or more
  according to the seller's audited balance sheet as of a date not
  earlier than the 13th month before the date of the transaction; or
                     (B)  is at least 80 percent owned by another
  person who:
                           (i)  in writing unconditionally guarantees
  performance by the person offering the business opportunity plan;
  and
                           (ii)  has a net worth of more than $25
  million according to the person's most recent audited balance sheet
  as of a date not earlier than the 13th month before the date of the
  transaction; or
               (8)  an arrangement defined as a franchise by 16 C.F.R.
  Section 436.2(a) and its subsequent amendments if:
                     (A)  the franchisor complies in all material
  respects in this state with 16 C.F.R. Part 436 and each order or
  other action of the Federal Trade Commission; and
                     (B)  before offering for sale or selling a
  franchise in this state, a person files with the secretary of state
  a notice containing:
                           (i)  the name of the franchisor;
                           (ii)  the name under which the franchisor
  intends to transact business; and
                           (iii)  the franchisor's principal business
  address.
         SECTION 8.3A.02.  Section 105.004(b), Business & Commerce
  Code, as effective April 1, 2009, is amended to read as follows:
         (b)  The Texas Department of Motor Vehicles [Transportation]
  shall provide a notice that states the provisions of this chapter to
  each person with a disability who is issued:
               (1)  license plates under Section 504.201,
  Transportation Code; or
               (2)  a disabled parking placard under Section 681.004,
  Transportation Code.
  SUBPART B. CODE OF CRIMINAL PROCEDURE
         SECTION 8.3B.01.  Section 1(1), Article 42.22, Code of
  Criminal Procedure, is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.3B.02.  Article 59.04(c), Code of Criminal
  Procedure, is amended to read as follows:
         (c)  If the property is a motor vehicle, and if there is
  reasonable cause to believe that the vehicle has been registered
  under the laws of this state, the attorney representing the state
  shall ask the Texas Department of Motor Vehicles [Transportation]
  to identify from its records the record owner of the vehicle and any
  interest holder. If the addresses of the owner and interest holder
  are not otherwise known, the attorney representing the state shall
  request citation be served on such persons at the address listed
  with the Texas Department of Motor Vehicles [Transportation]. If
  the citation issued to such address is returned unserved, the
  attorney representing the state shall cause a copy of the notice of
  the seizure and intended forfeiture to be posted at the courthouse
  door, to remain there for a period of not less than 30 days. If the
  owner or interest holder does not answer or appear after the notice
  has been so posted, the court shall enter a judgment by default as
  to the owner or interest holder, provided that the attorney
  representing the state files a written motion supported by
  affidavit setting forth the attempted service. An owner or
  interest holder whose interest is forfeited in this manner shall
  not be liable for court costs. If the person in possession of the
  vehicle at the time of the seizure is not the owner or the interest
  holder of the vehicle, notification shall be provided to the
  possessor in the same manner specified for notification to an owner
  or interest holder.
  SUBPART C. FAMILY CODE
         SECTION 8.3C.01.  Section 157.316(b), Family Code, is
  amended to read as follows:
         (b)  If a lien established under this subchapter attaches to
  a motor vehicle, the lien must be perfected in the manner provided
  by Chapter 501, Transportation Code, and the court or Title IV-D
  agency that rendered the order of child support shall include in the
  order a requirement that the obligor surrender to the court or Title
  IV-D agency evidence of the legal ownership of the motor vehicle
  against which the lien may attach. A lien against a motor vehicle
  under this subchapter is not perfected until the obligor's title to
  the vehicle has been surrendered to the court or Title IV-D agency
  and the Texas Department of Motor Vehicles [Transportation] has
  issued a subsequent title that discloses on its face the fact that
  the vehicle is subject to a child support lien under this
  subchapter.
         SECTION 8.3C.02.  Section 232.0022(a), Family Code, is
  amended to read as follows:
         (a)  The Texas Department of Motor Vehicles [Transportation]
  is the appropriate licensing authority for suspension or nonrenewal
  of a motor vehicle registration under this chapter.
  SUBPART D. FINANCE CODE
         SECTION 8.3D.01.  Section 306.001(9), Finance Code, is
  amended to read as follows:
               (9)  "Qualified commercial loan":
                     (A)  means:
                           (i)  a commercial loan in which one or more
  persons as part of the same transaction lends, advances, borrows,
  or receives, or is obligated to lend or advance or entitled to
  borrow or receive, money or credit with an aggregate value of:
                                 (a)  $3 million or more if the
  commercial loan is secured by real property; or
                                 (b)  $250,000 or more if the commercial
  loan is not secured by real property and, if the aggregate value of
  the commercial loan is less than $500,000, the loan documents
  contain a written certification from the borrower that:
                                       (1)  the borrower has been
  advised by the lender to seek the advice of an attorney and an
  accountant in connection with the commercial loan; and
                                       (2)  the borrower has had the
  opportunity to seek the advice of an attorney and accountant of the
  borrower's choice in connection with the commercial loan; and
                           (ii)  a renewal or extension of a commercial
  loan described by Paragraph (A), regardless of the principal amount
  of the loan at the time of the renewal or extension; and
                     (B)  does not include a commercial loan made for
  the purpose of financing a business licensed by the Motor Vehicle
  Board of the Texas Department of Motor Vehicles [Transportation]
  under Section 2301.251(a), Occupations Code.
         SECTION 8.3D.02.  Section 348.001(10-a), Finance Code, is
  amended to read as follows:
               (10-a)  "Towable recreation vehicle" means a
  nonmotorized vehicle that:
                     (A)  was originally designed and manufactured
  primarily to provide temporary human habitation in conjunction with
  recreational, camping, or seasonal use;
                     (B)  is titled and registered with the Texas
  Department of Motor Vehicles [Transportation] as a travel trailer
  through a county tax assessor-collector;
                     (C)  is permanently built on a single chassis;
                     (D)  contains at least one life support system;
  and
                     (E)  is designed to be towable by a motor vehicle.
         SECTION 8.3D.03.  Section 348.518, Finance Code, is amended
  to read as follows:
         Sec. 348.518.  SHARING OF INFORMATION. To ensure consistent
  enforcement of law and minimization of regulatory burdens, the
  commissioner and the Texas Department of Motor Vehicles
  [Transportation] may share information, including criminal history
  information, relating to a person licensed under this chapter.
  Information otherwise confidential remains confidential after it
  is shared under this section.
  SUBPART E. GOVERNMENT CODE
         SECTION 8.3E.01.  Section 411.122(d), Government Code, is
  amended to read as follows:
         (d)  The following state agencies are subject to this
  section:
               (1)  Texas Appraiser Licensing and Certification
  Board;
               (2)  Texas Board of Architectural Examiners;
               (3)  Texas Board of Chiropractic Examiners;
               (4)  State Board of Dental Examiners;
               (5)  Texas Board of Professional Engineers;
               (6)  Texas Funeral Service Commission;
               (7)  Texas Board of Professional Geoscientists;
               (8)  Department of State Health Services, except as
  provided by Section 411.110, and agencies attached to the
  department, including:
                     (A)  Texas State Board of Examiners of Dietitians;
                     (B)  Texas State Board of Examiners of Marriage
  and Family Therapists;
                     (C)  Midwifery Board;
                     (D)  Texas State Perfusionist Advisory Committee
  [Board of Examiners of Perfusionists];
                     (E)  Texas State Board of Examiners of
  Professional Counselors;
                     (F)  Texas State Board of Social Worker Examiners;
                     (G)  State Board of Examiners for Speech-Language
  Pathology and Audiology;
                     (H)  Advisory Board of Athletic Trainers;
                     (I)  State Committee of Examiners in the Fitting
  and Dispensing of Hearing Instruments;
                     (J)  Texas Board of Licensure for Professional
  Medical Physicists; and
                     (K)  Texas Board of Orthotics and Prosthetics;
               (9)  Texas Board of Professional Land Surveying;
               (10)  Texas Department of Licensing and Regulation,
  except as provided by Section 411.093;
               (11)  Texas Commission on Environmental Quality;
               (12)  Texas Board of Occupational Therapy Examiners;
               (13)  Texas Optometry Board;
               (14)  Texas State Board of Pharmacy;
               (15)  Texas Board of Physical Therapy Examiners;
               (16)  Texas State Board of Plumbing Examiners;
               (17)  Texas State Board of Podiatric Medical Examiners;
               (18)  Polygraph Examiners Board;
               (19)  Texas State Board of Examiners of Psychologists;
               (20)  Texas Real Estate Commission;
               (21)  Board of Tax Professional Examiners;
               (22)  Texas Department of Transportation;
               (23)  State Board of Veterinary Medical Examiners;
               (24)  Texas Department of Housing and Community
  Affairs;
               (25)  secretary of state;
               (26)  state fire marshal;
               (27)  Texas Education Agency; [and]
               (28)  Department of Agriculture; and
               (29)  Texas Department of Motor Vehicles.
  SUBPART F. HEALTH AND SAFETY CODE
         SECTION 8.3F.01.  Section 382.209(e), Health and Safety
  Code, is amended to read as follows:
         (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, the Texas
  Department of Motor Vehicles [Transportation], 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.
         SECTION 8.3F.02.  Section 382.210(f), Health and Safety
  Code, is amended to read as follows:
         (f)  In this section, "total cost" means the total amount of
  money paid or to be paid for the purchase of a motor vehicle as set
  forth as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of Motor
  Vehicles [Transportation]. In a transaction that does not involve
  the use of that form, the term means an amount of money that is
  equivalent, or substantially equivalent, to the amount that would
  appear as "sales price" on the Application for Texas Certificate of
  Title if that form were involved.
  SUBPART G. HUMAN RESOURCES CODE
         SECTION 8.3G.01.  Section 22.041, Human Resources Code, is
  amended to read as follows:
         Sec. 22.041.  THIRD-PARTY INFORMATION. Notwithstanding any
  other provision of this code, the department may use information
  obtained from a third party to verify the assets and resources of a
  person for purposes of determining the person's eligibility and
  need for medical assistance, financial assistance, or nutritional
  assistance. Third-party information includes information obtained
  from:
               (1)  a consumer reporting agency, as defined by Section
  20.01, Business & Commerce Code;
               (2)  an appraisal district; or
               (3)  the Texas Department of Motor Vehicles
  [Transportation's] vehicle registration record database.
         SECTION 8.3G.02.  Section 32.026(g), Human Resources Code,
  is amended to read as follows:
         (g)  Notwithstanding any other provision of this code, the
  department may use information obtained from a third party to
  verify the assets and resources of a person for purposes of
  determining the person's eligibility and need for medical
  assistance. Third-party information includes information obtained
  from:
               (1)  a consumer reporting agency, as defined by Section
  20.01, Business & Commerce Code;
               (2)  an appraisal district; or
               (3)  the Texas Department of Motor Vehicles
  [Transportation's] vehicle registration record database.
  SUBPART H. LOCAL GOVERNMENT CODE
         SECTION 8.3H.01.  Section 130.006, Local Government Code, is
  amended to read as follows:
         Sec. 130.006.  PROCEDURES FOR COLLECTION OF DISHONORED
  CHECKS AND INVOICES. A county tax assessor-collector may establish
  procedures for the collection of dishonored checks and credit card
  invoices. The procedures may include:
               (1)  official notification to the maker that the check
  or invoice has not been honored and that the receipt, registration,
  certificate, or other instrument issued on the receipt of the check
  or invoice is not valid until payment of the fee or tax is made;
               (2)  notification of the sheriff or other law
  enforcement officers that a check or credit card invoice has not
  been honored and that the receipt, registration, certificate, or
  other instrument held by the maker is not valid; and
               (3)  notification to the Texas Department of Motor
  Vehicles [Transportation], the comptroller of public accounts, or
  the Department of Public Safety that the receipt, registration,
  certificate, or other instrument held by the maker is not valid.
         SECTION 8.3H.02.  Section 130.007, Local Government Code, is
  amended to read as follows:
         Sec. 130.007.  REMISSION TO STATE NOT REQUIRED; STATE
  ASSISTANCE IN COLLECTION. (a) If a fee or tax is required to be
  remitted to the comptroller or the Texas Department of Motor
  Vehicles [Transportation] and if payment was made to the county tax
  assessor-collector by a check that was not honored by the drawee
  bank or by a credit card invoice that was not honored by the credit
  card issuer, the amount of the fee or tax is not required to be
  remitted, but the assessor-collector shall notify the appropriate
  department of:
               (1)  the amount of the fee or tax;
               (2)  the type of fee or tax involved; and
               (3)  the name and address of the maker.
         (b)  The Texas Department of Motor Vehicles [Transportation]
  and the comptroller shall assist the county tax assessor-collector
  in collecting the fee or tax and may cancel or revoke any receipt,
  registration, certificate, or other instrument issued in the name
  of the state conditioned on the payment of the fee or tax.
         SECTION 8.3H.03.  Section 130.008, Local Government Code, is
  amended to read as follows:
         Sec. 130.008.  LIABILITY OF TAX COLLECTOR FOR VIOLATIONS OF
  SUBCHAPTER. If the comptroller or the Texas Department of Motor
  Vehicles [Transportation] determines that the county tax
  assessor-collector has accepted payment for fees and taxes to be
  remitted to that department in violation of Section 130.004 or that
  more than two percent of the fees and taxes to be received from the
  assessor-collector are not remitted because of the acceptance of
  checks that are not honored by the drawee bank or of credit card
  invoices that are not honored by the credit card issuer, the
  department may notify the assessor-collector that the
  assessor-collector may not accept a check or credit card invoice
  for the payment of any fee or tax to be remitted to that department.
  A county tax assessor-collector who accepts a check or credit card
  invoice for the payment of a fee or tax, after notice that the
  assessor-collector may not receive a check or credit card invoice
  for the payment of fees or taxes to be remitted to a department, is
  liable to the state for the amount of the check or credit card
  invoice accepted.
         SECTION 8.3H.04.  Section 130.009, Local Government Code, is
  amended to read as follows:
         Sec. 130.009.  STATE RULES. The comptroller and the Texas
  Department of Motor Vehicles [Transportation] may make rules
  concerning the acceptance of checks or credit card invoices by a
  county tax assessor-collector and for the collection of dishonored
  checks or credit card invoices.
  SUBPART I. OCCUPATIONS CODE
         SECTION 8.3I.01.  Section 554.009(c), Occupations Code, is
  amended to read as follows:
         (c)  The board may register a vehicle with the Texas
  Department of Motor Vehicles [Transportation] in an alias name only
  for investigative personnel.
         SECTION 8.3I.03.  Sections 2301.005(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  A reference in law, including a rule, to the Texas Motor
  Vehicle Commission or to the board means [the director, except that
  a reference to] the board of the Texas Department of Motor Vehicles
  [means the commission if it is related to the adoption of rules].
         (b)  A reference in law, including a rule, to the executive
  director of the Texas Motor Vehicle Commission means the executive
  director of the Texas Department of Motor Vehicles.
         SECTION 8.3I.04.  Sections 2302.001(2) and (3), Occupations
  Code, are amended to read as follows:
               (2)  "Board" ["Commission"] means the board of the
  Texas Department of Motor Vehicles [Transportation Commission].
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 8.3I.05.  Section 2302.0015(b), Occupations Code,
  is amended to read as follows:
         (b)  For the purpose of enforcing or administering this
  chapter or Chapter 501 or 502, Transportation Code, a member of the
  board [commission], an employee or agent of the board [commission]
  or department, a member of the Public Safety Commission, an officer
  of the Department of Public Safety, or a peace officer may at a
  reasonable time:
               (1)  enter the premises of a business regulated under
  one of those chapters; and
               (2)  inspect or copy any document, record, vehicle,
  part, or other item regulated under one of those chapters.
         SECTION 8.3I.06.  The heading to Subchapter B, Chapter 2302,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER B. BOARD [COMMISSION] POWERS AND DUTIES
         SECTION 8.3I.07.  Sections 2302.051, 2302.052, and
  2302.053, Occupations Code, are amended to read as follows:
         Sec. 2302.051.  RULES AND ENFORCEMENT POWERS. The board
  [commission] shall adopt rules as necessary to administer this
  chapter and may take other action as necessary to enforce this
  chapter.
         Sec. 2302.052.  DUTY TO SET FEES. The board [commission]
  shall set application fees, license fees, renewal fees, and other
  fees as required to implement this chapter. The board [commission]
  shall set the fees in amounts reasonable and necessary to implement
  and enforce this chapter.
         Sec. 2302.053.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING. (a) The board [commission] may not adopt a
  rule under Section 2302.051 restricting advertising or competitive
  bidding by a person who holds a license issued under this chapter
  except to prohibit false, misleading, or deceptive practices by the
  person.
         (b)  The board [commission] may not include in its rules to
  prohibit false, misleading, or deceptive practices a rule that:
               (1)  restricts the use of any advertising medium;
               (2)  restricts the person's personal appearance or use
  of the person's voice in an advertisement;
               (3)  relates to the size or duration of an
  advertisement by the person; or
               (4)  restricts the use of a trade name in advertising by
  the person.
         SECTION 8.3I.08.  Section 2302.108(b), Occupations Code, is
  amended to read as follows:
         (b)  The board [commission] by rule shall establish the
  grounds for denial, suspension, revocation, or reinstatement of a
  license issued under this chapter and the procedures for
  disciplinary action. A rule adopted under this subsection may not
  conflict with a rule adopted by the State Office of Administrative
  Hearings.
         SECTION 8.3I.09. Section 2302.204, Occupations Code, is
  amended to read as follows:
         Sec. 2302.204.  CASUAL SALES. This chapter does not apply to
  a person who purchases fewer than three nonrepairable motor
  vehicles or salvage motor vehicles from a salvage vehicle dealer,
  an insurance company or salvage pool operator in a casual sale at
  auction, except that:
               (1)  the board [commission] shall adopt rules as
  necessary to regulate casual sales by salvage vehicle dealers,
  insurance companies, or salvage pool operators and to enforce this
  section; and
               (2)  a salvage vehicle dealer, insurance company, or
  salvage pool operator who sells a motor vehicle in a casual sale
  shall comply with those rules and Subchapter E, Chapter 501,
  Transportation Code.
  SUBPART J. PENAL CODE
         SECTION 8.3J.01.  Section 31.03(c), Penal Code, is amended
  to read as follows:
         (c)  For purposes of Subsection (b):
               (1)  evidence that the actor has previously
  participated in recent transactions other than, but similar to,
  that which the prosecution is based is admissible for the purpose of
  showing knowledge or intent and the issues of knowledge or intent
  are raised by the actor's plea of not guilty;
               (2)  the testimony of an accomplice shall be
  corroborated by proof that tends to connect the actor to the crime,
  but the actor's knowledge or intent may be established by the
  uncorroborated testimony of the accomplice;
               (3)  an actor engaged in the business of buying and
  selling used or secondhand personal property, or lending money on
  the security of personal property deposited with the actor, is
  presumed to know upon receipt by the actor of stolen property (other
  than a motor vehicle subject to Chapter 501, Transportation Code)
  that the property has been previously stolen from another if the
  actor pays for or loans against the property $25 or more (or
  consideration of equivalent value) and the actor knowingly or
  recklessly:
                     (A)  fails to record the name, address, and
  physical description or identification number of the seller or
  pledgor;
                     (B)  fails to record a complete description of the
  property, including the serial number, if reasonably available, or
  other identifying characteristics; or
                     (C)  fails to obtain a signed warranty from the
  seller or pledgor that the seller or pledgor has the right to
  possess the property. It is the express intent of this provision
  that the presumption arises unless the actor complies with each of
  the numbered requirements;
               (4)  for the purposes of Subdivision (3)(A),
  "identification number" means driver's license number, military
  identification number, identification certificate, or other
  official number capable of identifying an individual;
               (5)  stolen property does not lose its character as
  stolen when recovered by any law enforcement agency;
               (6)  an actor engaged in the business of obtaining
  abandoned or wrecked motor vehicles or parts of an abandoned or
  wrecked motor vehicle for resale, disposal, scrap, repair,
  rebuilding, demolition, or other form of salvage is presumed to
  know on receipt by the actor of stolen property that the property
  has been previously stolen from another if the actor knowingly or
  recklessly:
                     (A)  fails to maintain an accurate and legible
  inventory of each motor vehicle component part purchased by or
  delivered to the actor, including the date of purchase or delivery,
  the name, age, address, sex, and driver's license number of the
  seller or person making the delivery, the license plate number of
  the motor vehicle in which the part was delivered, a complete
  description of the part, and the vehicle identification number of
  the motor vehicle from which the part was removed, or in lieu of
  maintaining an inventory, fails to record the name and certificate
  of inventory number of the person who dismantled the motor vehicle
  from which the part was obtained;
                     (B)  fails on receipt of a motor vehicle to obtain
  a certificate of authority, sales receipt, or transfer document as
  required by Chapter 683, Transportation Code, or a certificate of
  title showing that the motor vehicle is not subject to a lien or
  that all recorded liens on the motor vehicle have been released; or
                     (C)  fails on receipt of a motor vehicle to
  immediately remove an unexpired license plate from the motor
  vehicle, to keep the plate in a secure and locked place, or to
  maintain an inventory, on forms provided by the Texas Department of
  Motor Vehicles [Transportation], of license plates kept under this
  paragraph, including for each plate or set of plates the license
  plate number and the make, motor number, and vehicle identification
  number of the motor vehicle from which the plate was removed;
               (7)  an actor who purchases or receives a used or
  secondhand motor vehicle is presumed to know on receipt by the actor
  of the motor vehicle that the motor vehicle has been previously
  stolen from another if the actor knowingly or recklessly:
                     (A)  fails to report to the Texas Department of
  Motor Vehicles [Transportation] the failure of the person who sold
  or delivered the motor vehicle to the actor to deliver to the actor
  a properly executed certificate of title to the motor vehicle at the
  time the motor vehicle was delivered; or
                     (B)  fails to file with the county tax
  assessor-collector of the county in which the actor received the
  motor vehicle, not later than the 20th day after the date the actor
  received the motor vehicle, the registration license receipt and
  certificate of title or evidence of title delivered to the actor in
  accordance with Subchapter D, Chapter 520, Transportation Code, at
  the time the motor vehicle was delivered;
               (8)  an actor who purchases or receives from any source
  other than a licensed retailer or distributor of pesticides a
  restricted-use pesticide or a state-limited-use pesticide or a
  compound, mixture, or preparation containing a restricted-use or
  state-limited-use pesticide is presumed to know on receipt by the
  actor of the pesticide or compound, mixture, or preparation that
  the pesticide or compound, mixture, or preparation has been
  previously stolen from another if the actor:
                     (A)  fails to record the name, address, and
  physical description of the seller or pledgor;
                     (B)  fails to record a complete description of the
  amount and type of pesticide or compound, mixture, or preparation
  purchased or received; and
                     (C)  fails to obtain a signed warranty from the
  seller or pledgor that the seller or pledgor has the right to
  possess the property; and
               (9)  an actor who is subject to Section 409, Packers and
  Stockyards Act (7 U.S.C. Section 228b), that obtains livestock from
  a commission merchant by representing that the actor will make
  prompt payment is presumed to have induced the commission
  merchant's consent by deception if the actor fails to make full
  payment in accordance with Section 409, Packers and Stockyards Act
  (7 U.S.C. Section 228b).
         SECTION 8.3J.02.  Section 31.11(b), Penal Code, is amended
  to read as follows:
         (b)  It is an affirmative defense to prosecution under this
  section that the person was:
               (1)  the owner or acting with the effective consent of
  the owner of the property involved;
               (2)  a peace officer acting in the actual discharge of
  official duties; or
               (3)  acting with respect to a number assigned to a
  vehicle by the Texas Department of Transportation or the Texas
  Department of Motor Vehicles, as applicable, and the person was:
                     (A)  in the actual discharge of official duties as
  an employee or agent of the department; or
                     (B)  in full compliance with the rules of the
  department as an applicant for an assigned number approved by the
  department.
  SUBPART K. TAX CODE
         SECTION 8.3K.01.  Section 21.02(d), Tax Code, is amended to
  read as follows:
         (d)  A motor vehicle does not have taxable situs in a taxing
  unit under Subsection (a)(1) if, on January 1, the vehicle:
               (1)  has been located for less than 60 days at a place
  of business of a person who holds a wholesale motor vehicle auction
  general distinguishing number issued by the Texas Department of
  Motor Vehicles [Transportation] under Chapter 503, Transportation
  Code, for that place of business; and
               (2)  is offered for resale.
         SECTION 8.3K.02.  Section 22.04(d), Tax Code, is amended to
  read as follows:
         (d)  This section does not apply to a motor vehicle that on
  January 1 is located at a place of business of a person who holds a
  wholesale motor vehicle auction general distinguishing number
  issued by the Texas Department of Motor Vehicles [Transportation]
  under Chapter 503, Transportation Code, for that place of business,
  and that:
               (1)  has not acquired taxable situs under Section
  21.02(a)(1) in a taxing unit that participates in the appraisal
  district because the vehicle is described by Section 21.02(d);
               (2)  is offered for sale by a dealer who holds a
  dealer's general distinguishing number issued by the Texas
  Department of Motor Vehicles [Transportation] under Chapter 503,
  Transportation Code, and whose inventory of motor vehicles is
  subject to taxation in the manner provided by Sections 23.121 and
  23.122; or
               (3)  is collateral possessed by a lienholder and
  offered for sale in foreclosure of a security interest.
         SECTION 8.3K.03.  Sections 23.121(a)(3), (11), and (14), Tax
  Code, are amended to read as follows:
               (3)  "Dealer" means a person who holds a dealer's
  general distinguishing number issued by the Texas Department of
  Motor Vehicles [Transportation] under the authority of Chapter 503,
  Transportation Code, or who is legally recognized as a motor
  vehicle dealer pursuant to the law of another state and who complies
  with the terms of Section 152.063(f). The term does not include:
                     (A)  a person who holds a manufacturer's license
  issued under Chapter 2301, Occupations Code [by the Motor Vehicle
  Board of the Texas Department of Transportation];
                     (B)  an entity that is owned or controlled by a
  person who holds a manufacturer's license issued under Chapter
  2301, Occupations Code [by the Motor Vehicle Board of the Texas
  Department of Transportation]; or
                     (C)  a dealer whose general distinguishing number
  issued by the Texas Department of Motor Vehicles [Transportation]
  under the authority of Chapter 503, Transportation Code, prohibits
  the dealer from selling a vehicle to any person except a dealer.
               (11)  "Sales price" means the total amount of money
  paid or to be paid for the purchase of a motor vehicle as set forth
  as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of Motor
  Vehicles [Transportation]. In a transaction that does not involve
  the use of that form, the term means an amount of money that is
  equivalent, or substantially equivalent, to the amount that would
  appear as "sales price" on the Application for Texas Certificate of
  Title if that form were involved.
               (14)  "Towable recreational vehicle" means a
  nonmotorized vehicle that is designed for temporary human
  habitation for recreational, camping, or seasonal use and:
                     (A)  is titled and registered with the Texas
  Department of Motor Vehicles [Transportation] through the office of
  the collector;
                     (B)  is permanently built on a single chassis;
                     (C)  contains one or more life support systems;
  and
                     (D)  is designed to be towable by a motor vehicle.
         SECTION 8.3K.04.  Sections 23.121(f), (g), and (h), Tax
  Code, are amended to read as follows:
         (f)  The comptroller shall promulgate a form entitled
  Dealer's Motor Vehicle Inventory Declaration. Except as provided
  by Section 23.122(l) [of this code], not later than February 1 of
  each year, or, in the case of a dealer who was not in business on
  January 1, not later than 30 days after commencement of business,
  each dealer shall file a declaration with the chief appraiser and
  file a copy with the collector. For purposes of this subsection, a
  dealer is presumed to have commenced business on the date of
  issuance to the dealer of a dealer's general distinguishing number
  as provided by Chapter 503, Transportation Code. Notwithstanding
  the presumption created by this subsection, a chief appraiser may,
  at his or her sole discretion, designate as the date on which a
  dealer commenced business a date other than the date of issuance to
  the dealer of a dealer's general distinguishing number. The
  declaration is sufficient to comply with this subsection if it sets
  forth the following information:
               (1)  the name and business address of each location at
  which the dealer owner conducts business;
               (2)  each of the dealer's general distinguishing
  numbers issued by the Texas Department of Motor Vehicles
  [Transportation];
               (3)  a statement that the dealer owner is the owner of a
  dealer's motor vehicle inventory; and
               (4)  the market value of the dealer's motor vehicle
  inventory for the current tax year as computed under Section
  23.121(b) [of this code].
         (g)  Under the terms provided by this subsection, the chief
  appraiser may examine the books and records of the holder of a
  general distinguishing number issued by the Texas Department of
  Motor Vehicles [Transportation]. A request made under this
  subsection must be made in writing, delivered personally to the
  custodian of the records, at the location for which the general
  distinguishing number has been issued, must provide a period not
  less than 15 days for the person to respond to the request, and must
  state that the person to whom it is addressed has the right to seek
  judicial relief from compliance with the request. In a request made
  under this section the chief appraiser may examine:
               (1)  the document issued by the Texas Department of
  Motor Vehicles [Transportation] showing the person's general
  distinguishing number;
               (2)  documentation appropriate to allow the chief
  appraiser to ascertain the applicability of this section and
  Section 23.122 [of this code] to the person;
               (3)  sales records to substantiate information set
  forth in the dealer's declaration filed by the person.
         (h)  If a dealer fails to file a declaration as required by
  this section, or if, on the declaration required by this section, a
  dealer reports the sale of fewer than five motor vehicles in the
  prior year, the chief appraiser shall report that fact to the Texas
  Department of Motor Vehicles [Transportation] and the department
  shall initiate termination proceedings. The chief appraiser shall
  include with the report a copy of a declaration, if any, indicating
  the sale by a dealer of fewer than five motor vehicles in the prior
  year. A report by a chief appraiser to the Texas Department of
  Motor Vehicles [Transportation] as provided by this subsection is
  prima facie grounds for the cancellation of the dealer's general
  distinguishing number under Section 503.038(a)(9), Transportation
  Code, or for refusal by the Texas Department of Motor Vehicles
  [Transportation] to renew the dealer's general distinguishing
  number.
         SECTION 8.3K.05.  Section 23.123(c), Tax Code, is amended to
  read as follows:
         (c)  Information made confidential by this section may be
  disclosed:
               (1)  in a judicial or administrative proceeding
  pursuant to a lawful subpoena;
               (2)  to the person who filed the declaration or
  statement or to that person's representative authorized by the
  person in writing to receive the information;
               (3)  to the comptroller or an employee of the
  comptroller authorized by the comptroller to receive the
  information;
               (4)  to a collector or chief appraiser;
               (5)  to a district attorney, criminal district attorney
  or county attorney involved in the enforcement of a penalty imposed
  pursuant to Section 23.121 or Section 23.122 [of this code];
               (6)  for statistical purposes if in a form that does not
  identify specific property or a specific property owner;
               (7)  if and to the extent that the information is
  required for inclusion in a public document or record that the
  appraisal or collection office is required by law to prepare or
  maintain; or
               (8)  to the Texas Department of Motor Vehicles
  [Transportation] for use by that department in auditing compliance
  of its licensees with appropriate provisions of applicable law.
         SECTION 8.3K.06.  Section 23.124(a)(11), Tax Code, is
  amended to read as follows:
               (11)  "Sales price" means the total amount of money
  paid or to be paid for the purchase of:
                     (A)  a vessel, other than a trailer that is
  treated as a vessel, as set forth as "sales price" in the form
  entitled "Application for Texas Certificate of Number/Title for
  Boat/Seller, Donor or Trader's Affidavit" promulgated by the Parks
  and Wildlife Department;
                     (B)  an outboard motor as set forth as "sales
  price" in the form entitled "Application for Texas Certificate of
  Title for an Outboard Motor/Seller, Donor or Trader's Affidavit"
  promulgated by the Parks and Wildlife Department; or
                     (C)  a trailer that is treated as a vessel as set
  forth as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of Motor
  Vehicles [Transportation].
               In a transaction involving a vessel, an outboard motor,
  or a trailer that is treated as a vessel that does not involve the
  use of one of these forms, the term means an amount of money that is
  equivalent, or substantially equivalent, to the amount that would
  appear as "sales price" on the Application for Texas Certificate of
  Number/Title for Boat/Seller, Donor or Trader's Affidavit, the
  Application for Texas Certificate of Title for an Outboard
  Motor/Seller, Donor or Trader's Affidavit, or the Application for
  Texas Certificate of Title if one of these forms were involved.
         SECTION 8.3K.07.  Section 113.011, Tax Code, is amended to
  read as follows:
         Sec. 113.011.  LIENS FILED WITH TEXAS DEPARTMENT OF MOTOR
  VEHICLES [TRANSPORTATION]. The comptroller shall furnish to the
  Texas Department of Motor Vehicles [Transportation] each release of
  a tax lien filed by the comptroller with that department.
         SECTION 8.3K.08.  Sections 152.0412(a) and (f), Tax Code,
  are amended to read as follows:
         (a)  In this section, "standard presumptive value" means the
  private-party transaction value of a motor vehicle, as determined
  by the Texas Department of Motor Vehicles [Transportation] based on
  an appropriate regional guidebook of a nationally recognized motor
  vehicle value guide service, or based on another motor vehicle
  guide publication that the department determines is appropriate if
  a private-party transaction value for the motor vehicle is not
  available from a regional guidebook described by this subsection.
         (f)  The Texas Department of Motor Vehicles [Transportation]
  shall maintain information on the standard presumptive values of
  motor vehicles as part of the department's registration and title
  system. The department shall update the information at least
  quarterly each calendar year and publish, electronically or
  otherwise, the updated information.
         SECTION 8.3K.09.  Section 152.042, Tax Code, is amended to
  read as follows:
         Sec. 152.042.  COLLECTION OF TAX ON METAL DEALER PLATES. A
  person required to pay the tax imposed by Section 152.027 shall pay
  the tax to the Texas Department of Motor Vehicles [Transportation],
  and the department may not issue the metal dealer's plates until the
  tax is paid.
         SECTION 8.3K.10.  Section 152.121(b), Tax Code, is amended
  to read as follows:
         (b)  Taxes on metal dealer plates collected by the Texas
  Department of Motor Vehicles [Transportation] shall be deposited by
  the department in the state treasury in the same manner as are other
  taxes collected under this chapter.
         SECTION 8.3K.11.  Section 162.001(52), Tax Code, is amended
  to read as follows:
               (52)  "Registered gross weight" means the total weight
  of the vehicle and carrying capacity shown on the registration
  certificate issued by the Texas Department of Motor Vehicles
  [Transportation].
  ARTICLE 9.  RAIL DIVISION
         SECTION 9.01.  Section 91.001, Transportation Code, is
  amended by adding Subdivision (3-a) to read as follows:
               (3-a)  "Division" means the rail division of the
  department.
         SECTION 9.02.  Subchapter A, Chapter 91, Transportation
  Code, is amended by adding Section 91.0041 to read as follows:
         Sec. 91.0041.  DUTIES OF RAIL DIVISION. In addition to any
  other duty imposed on the division, the division shall:
               (1)  assure that rail is an integral part of the
  department's transportation planning process;
               (2)  coordinate and oversee rail projects that are
  financed with money distributed by the department, including money
  from the Texas rail relocation and improvement fund;
               (3)  develop and plan for improved passenger and
  freight rail facilities and services in this state; and
               (4)  coordinate the efforts of the department, the
  federal government, political subdivisions, and private entities
  to continue the development of rail facilities and services in this
  state.
         SECTION 9.03.  Subchapter H, Chapter 201, Transportation
  Code, is amended by adding Sections 201.6013 and 201.6014 to read as
  follows:
         Sec. 201.6013.  COORDINATION OF STATEWIDE PASSENGER RAIL
  SYSTEM. To facilitate the development and interconnectivity of
  rail systems in this state, the department shall coordinate
  activities regarding the planning, construction, operation, and
  maintenance of a statewide passenger rail system. The department
  shall coordinate with other entities involved with passenger rail
  systems, including governmental entities, private entities, and
  nonprofit corporations.
         Sec. 201.6014.  LONG-TERM PLAN FOR STATEWIDE PASSENGER RAIL
  SYSTEM. The department shall prepare and update annually a
  long-term plan for a statewide passenger rail system. Information
  contained in the plan must include:
               (1)  a description of existing and proposed passenger
  rail systems;
               (2)  information regarding the status of passenger rail
  systems under construction;
               (3)  an analysis of potential interconnectivity
  difficulties;
               (4)  ridership projections for proposed passenger rail
  projects; and
               (5)  ridership statistics for existing passenger rail
  systems.
         SECTION 9.04.  (a) Section 1(1), Chapter 350 (S.B. 1101),
  Acts of the 71st Legislature, Regular Session, 1989 (Article 6419c,
  Vernon's Texas Civil Statutes), is amended to read as follows:
               (1)  "Department" ["Commission"] means the Texas
  Department of Transportation [Railroad Commission of Texas].
         (b)  Sections 2(a) and (b), Chapter 350 (S.B. 1101), Acts of
  the 71st Legislature, Regular Session, 1989 (Article 6419c,
  Vernon's Texas Civil Statutes), are amended to read as follows:
         (a)  A railroad company that transports hazardous materials
  in or through the state shall file with the department [commission]
  a copy of each hazardous materials incident report that the company
  files with the federal Department of Transportation in accordance
  with 49 C.F.R. 171.16, not later than the 15th day after the date
  that the incident that forms the basis of the report is discovered.
         (b)  Not later than April 1 of each year, a railroad company
  that transports hazardous materials in or through the state shall
  provide to the department [commission]:
               (1)  a map depicting the location of each railroad main
  line and branch line that the company owns, leases, or operates in
  the state;
               (2)  a map delineating the geographical limits of the
  railroad company operating divisions or districts and the principal
  operating officer for the railroad company in each operating
  division or district;
               (3)  a primary and secondary telephone number for the
  railroad company dispatcher responsible for train operations in
  each operating division or district;
               (4)  a list of each type of hazardous material by hazard
  class and the quantity of the material transported over each
  railroad line owned, leased, or operated by the railroad company
  during the preceding year; and
               (5)  the name and address of the railroad company
  employee in charge of training persons to handle an incident
  related to hazardous materials.
         (c)  Section 3, Chapter 350 (S.B. 1101), Acts of the 71st
  Legislature, Regular Session, 1989 (Article 6419c, Vernon's Texas
  Civil Statutes), is amended to read as follows:
         Sec. 3.  DISTRIBUTION. (a) The department [commission]
  shall compile information submitted to the department [commission]
  under this Act for distribution to:
               (1)  local emergency management agencies located in
  jurisdictions containing reported railroad operations; and
               (2)  the metropolitan planning organizations for those
  jurisdictions.
         (b)  At least once each year the division of emergency
  management shall distribute the information compiled by the
  department [commission] to the appropriate officials for inclusion
  in local emergency management plans.
  ARTICLE 10.  ELECTRONIC SIGNS
         SECTION 10.01.  Chapter 544, Transportation Code, is amended
  by adding Section 544.013 to read as follows:
         Sec. 544.013.  CHANGEABLE MESSAGE SIGN SYSTEM. (a) In this
  section, "changeable message sign" means a sign that conforms to
  the manual and specifications adopted under Section 544.001. The
  term includes a dynamic message sign.
         (b)  The Texas Department of Transportation shall actively
  manage a system of changeable message signs located on highways
  under the jurisdiction of that department to mitigate traffic
  congestion by providing current information to the traveling
  public, including information about traffic incidents, weather
  conditions, road construction, and alternative routes.
  ARTICLE 11. COUNTY TRAFFIC OFFICERS
         SECTION 11.01.  Section 701.006, Transportation Code, is
  amended to read as follows:
           Sec. 701.006.  [COMPLAINT; HEARING;] DISMISSAL. [(a)   If
  a county traffic officer fails to perform the officer's duty to
  enforce the law, the district engineer of the Texas Department of
  Transportation district in which the officer operates may send a
  written, signed complaint to the commissioners court.
         [(b)     On receipt of the complaint, the commissioners court
  shall hold a hearing and summon the officer to appear before it.
         [(c)     If the commissioners court determines at the hearing
  that the officer has not performed the officer's duty, the
  commissioners court shall immediately discharge the officer and
  promptly employ another officer.
         [(d)]  The commissioners court on its own initiative, or on
  recommendation of the sheriff, may dismiss a county traffic officer
  if the officer is no longer needed or if the officer's service is
  unsatisfactory.
         SECTION 11.02.  Section 701.002(b), Transportation Code, is
  repealed.
  ARTICLE 12. ISSUANCE OF GENERAL OBLIGATION BONDS FOR HIGHWAY
  IMPROVEMENT PROJECTS
         SECTION 12.01.  Subchapter A, Chapter 222, Transportation
  Code, is amended by adding Section 222.005 to read as follows:
         Sec. 222.005.  ISSUANCE OF GENERAL OBLIGATION BONDS FOR
  HIGHWAY IMPROVEMENT PROJECTS. (a) In this section:
               (1)  "Bonds" means bonds, notes, and other public
  securities.
               (2)  "Credit agreement" has the meaning assigned by
  Section 1371.001, Government Code.
               (3)  "Improvement" includes acquisition of the
  highway, construction, reconstruction, and major maintenance,
  including any necessary design, and the acquisition of
  rights-of-way.
         (b)  The commission by order or resolution may issue general
  obligation bonds for the purposes provided in this section. The
  aggregate principal amount of the bonds that are issued may not
  exceed the amount specified by Section 49-p(a), Article III, Texas
  Constitution.
         (c)  The commission may enter into credit agreements
  relating to the bonds. A credit agreement entered into under this
  section may be secured by and payable from the same sources as the
  bonds.
         (d)  The bonds shall be executed in the form, on the terms,
  and in the denominations, bear interest, and be issued in
  installments as prescribed by the commission, and must mature not
  later than 30 years after their dates of issuance, subject to any
  refundings or renewals. The bonds may be issued in multiple series
  and issues from time to time and may have the provisions the
  commission determines appropriate and in the interest of the state.
         (e)  The commission has all powers necessary or appropriate
  to carry out this section and to implement Section 49-p, Article
  III, Texas Constitution, including the powers granted to other
  bond-issuing governmental agencies and units and to nonprofit
  corporations by Chapters 1201, 1207, and 1371, Government Code.
         (f)  The bonds and the record of proceedings authorizing the
  bonds and any related credit agreements shall be submitted to the
  attorney general for approval as to their legality. If the attorney
  general finds that they will be issued in accordance with this
  section and other applicable law, the attorney general shall
  approve them, and, after payment by the purchasers of the
  obligations in accordance with the terms of sale and after
  execution and delivery of the related credit agreements, the
  obligations and related credit agreements are incontestable for any
  cause.
         (g)  Bonds may be issued for one or more of the following
  purposes:
               (1)  to pay all or part of the costs of highway
  improvement projects;
               (2)  to pay:
                     (A)  the costs of administering projects
  authorized under this section;
                     (B)  the cost or expense of the issuance of the
  bonds; or
                     (C)  all or part of a payment owed or to be owed
  under a credit agreement; and
               (3)  to provide money for deposit in the Texas
  Transportation Revolving Fund or similar revolving fund authorized
  by law, to be used for the purpose of making loans for highway
  improvement projects as provided by law.
         (h)  The proceeds from the issuance and sale of the bonds may
  not be expended or used for the purposes authorized under this
  section unless those proceeds have been appropriated by the
  legislature.
         (i)  The comptroller shall pay the principal of the bonds as
  they mature and the interest as it becomes payable and shall pay any
  cost related to the bonds that becomes due, including payments
  under credit agreements.
         SECTION 12.02.  This article does not make an appropriation.
  This article takes effect only if a specific appropriation for the
  implementation of the article is provided in a general
  appropriations act of the 81st Legislature.
         SECTION 12.03.  Except as provided by Section 12.02 of this
  article, this article takes effect immediately if this Act receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  article takes effect September 1, 2009, except as provided by
  Section 12.02 of this article.
  ARTICLE 13. METROPOLITAN PLANNING ORGANIZATIONS
         SECTION 13.01.  Section 472.034, Transportation Code, is
  amended to read as follows:
         Sec. 472.034.  STANDARDS OF CONDUCT; ETHICS POLICY.  (a)  A
  policy board member or employee of a metropolitan planning
  organization may not:
               (1)  accept or solicit any gift, favor, or service that
  might reasonably tend to influence the member or employee in the
  discharge of official duties or that the member or employee knows or
  should know is being offered with the intent to influence the
  member's or employee's official conduct;
               (2)  accept other employment or engage in a business or
  professional activity that the member or employee might reasonably
  expect would require or induce the member or employee to disclose
  confidential information acquired by reason of the official
  position;
               (3)  accept other employment or compensation that could
  reasonably be expected to impair the member's or employee's
  independence of judgment in the performance of the member's or
  employee's official duties;
               (4)  make personal investments that could reasonably be
  expected to create a substantial conflict between the member's or
  employee's private interest and the public interest; or
               (5)  intentionally or knowingly solicit, accept, or
  agree to accept any benefit for having exercised the member's or
  employee's official powers or performed the member's or employee's
  official duties in favor of another.
         (b)  An employee of a metropolitan planning organization who
  violates Subsection (a) or an ethics policy adopted under
  Subsection (c) is subject to termination of the employee's
  employment or another employment-related sanction.
  Notwithstanding this subsection, a policy board member or employee
  of a metropolitan planning organization who violates Subsection (a)
  is subject to any applicable civil or criminal penalty if the
  violation also constitutes a violation of another statute or rule.
         (c)  Each policy board shall:
               (1)  adopt bylaws establishing an ethics policy for
  employees of a metropolitan planning organization and policy board
  members consistent with the standards prescribed by Subsection (a),
  including provisions to prevent a policy board member from having a
  conflict of interest in business before the metropolitan planning
  organization; and
               (2)  distribute a copy of the ethics policy to:
                     (A)  each new employee not later than the third
  business day after the date the person begins employment with the
  agency; and
                     (B)  each new policy board member not later than
  the third business day after the date the person qualifies for
  office.
         (d)  If a person with knowledge of a violation of an ethics
  policy established under Subsection (c) that also constitutes a
  criminal offense under another law of this state reports the
  violation to an appropriate prosecuting attorney who concludes that
  there is reasonable basis to initiate an investigation, then, not
  later than the 60th day after the date a person notifies the
  prosecuting attorney under this subsection, the prosecuting
  attorney shall notify the Texas Ethics Commission of the status of
  the prosecuting attorney's investigation of the alleged violation.
  The Texas Ethics Commission shall, on the request of the
  prosecuting attorney, assist the prosecuting attorney in
  investigating the alleged violation.
         (e)  To the extent an employee of a metropolitan planning
  organization is subject to the ethics policy of another
  governmental entity and to the extent that policy conflicts with
  this section, the stricter policy prevails.
         SECTION 13.02.  Not later than January 1, 2010, each policy
  board of a metropolitan planning organization shall adopt bylaws
  establishing an ethics policy as required by Section 472.034(c),
  Transportation Code, as added by this article, and distribute a
  copy of the ethics policy to each policy board member and employee.
  ARTICLE 14. MOTOR VEHICLE ACCIDENT REPORTS
         SECTION 14.01.  Section 550.065, Transportation Code, is
  amended by amending Subsections (a), (b), and (d) and adding
  Subsections (e), (f), and (g) to read as follows:
         (a)  This section applies only to information that is held by
  the department or another governmental entity and relates to a
  motor vehicle accident reported under this chapter or Section
  601.004, including accident report information compiled under
  Section 201.805, as added by Chapter 1407 (S.B. 766), Acts of the
  80th Legislature, Regular Session, 2007.
         (b)  Except as provided by Subsection (c) or (e), the
  information is privileged and for the confidential use of:
               (1)  the department; and
               (2)  an agency of the United States, this state, or a
  local government of this state that has use for the information for
  accident prevention purposes.
         (d)  The fee for a copy of the accident report [or accident
  information] is $6 [or the actual cost of the preparation of the
  copy, whichever is less]. The copy may be certified by the
  department or the governmental entity for an additional fee of $2.
  The department or the governmental entity may issue a certification
  that no report or information is on file for a fee of $6.
         (e)  In addition to the information required to be released
  under Subsection (c), the department may release:
               (1)  information relating to motor vehicle accidents
  that the department compiles under Section 201.805, as added by
  Chapter 1407 (S.B. 766), Acts of the 80th Legislature, Regular
  Session, 2007; or
               (2)  a vehicle identification number and specific
  accident information relating to that vehicle.
         (f)  The department:
               (1)  may not release under Subsection (e) information
  that:
                     (A)  is personal information, as defined by
  Section 730.003; or
                     (B)  would allow a person to satisfy the
  requirements of Subsection (c)(4) for the release of information
  for a specific motor vehicle accident; and
               (2)  shall withhold or redact the following items of
  information:
                     (A)  the first, middle, and last name of any
  person listed in an accident report, including a vehicle driver,
  occupant, owner, or lessee, a bicyclist, a pedestrian, or a
  property owner;
                     (B)  the number of any driver's license,
  commercial driver's license, or personal identification
  certificate issued to any person listed in an accident report;
                     (C)  the date of birth, other than the year, of any
  person listed in an accident report;
                     (D)  the address, other than zip code, and
  telephone number of any person listed in an accident report;
                     (E)  the license plate number of any vehicle
  listed in an accident report;
                     (F)  the date of any accident, other than the
  year;
                     (G)  the name of any insurance company listed as a
  provider of financial responsibility for a vehicle listed in an
  accident report;
                     (H)  the number of any insurance policy issued by
  an insurance company listed as a provider of financial
  responsibility;
                     (I)  the date the peace officer who investigated
  the accident was notified of the accident;
                     (J)  the date the investigating peace officer
  arrived at the accident site;
                     (K)  the date the investigating officer's report
  was prepared;
                     (L)  the badge number or identification number of
  the investigating officer;
                     (M)  the date on which any person who died as a
  result of the accident died;
                     (N)  the date of any commercial motor vehicle
  report; and
                     (O)  the place where any person injured or killed
  in an accident was taken and the person or entity that provided the
  transportation.
         (g)  The amount that may be charged for information provided
  under Subsection (e) shall be calculated in the manner specified by
  Chapter 552, Government Code, for public information provided by a
  governmental body under that chapter.
  ARTICLE 16. TEXAS TRANSPORTATION REVOLVING FUND
         SECTION 16.01.  Chapter 222, Transportation Code, is amended
  by adding Subchapter F to read as follows:
  SUBCHAPTER F. TEXAS TRANSPORTATION REVOLVING FUND
         Sec. 222.131.  DEFINITIONS. In this subchapter:
               (1)  "Bonds" means bonds, notes, and other public
  securities.
               (2)  "Credit agreement" has the meaning assigned by
  Section 1371.001, Government Code.
               (3)  "Fund" means the Texas Transportation Revolving
  Fund.
               (4)  "Fund revenue bonds" means bonds issued under
  Section 222.135.
               (5)  "Highway improvement project" includes
  acquisition of the highway, construction, reconstruction, and
  major maintenance, including any necessary design, and the
  acquisition of rights-of-way.
               (6)  "Transit provider" has the meaning assigned by
  Section 370.003.
               (7)  "Transportation project" means a tolled or
  nontolled highway improvement project.
         Sec. 222.132.  CREATION OF FUND. The Texas Transportation
  Revolving Fund is created as a fund held in the Texas Treasury
  Safekeeping Trust Company.
         Sec. 222.133.  ADMINISTRATION OF FUND. (a)  The commission,
  through the department, shall manage, invest, use, administer, and
  provide financial assistance from the fund as provided by this
  subchapter.
         (b)  The commission may create within the fund one or more
  accounts or subaccounts as determined appropriate and necessary by
  the commission.
         (c)  The commission shall prepare and file annually with the
  governor, the lieutenant governor, and the Legislative Budget Board
  a report providing information on the operation of the fund,
  including:
               (1)  the amounts and sources of money deposited in the
  fund during the year;
               (2)  investments and returns on investments of money in
  the fund;
               (3)  loans made from the fund;
               (4)  other financial assistance provided from the fund;
               (5)  the status of any defaults on repayment of loans or
  other financial assistance provided from the fund; and
               (6)  the details of any transportation project for
  which financial assistance is received from the fund, including the
  identity of any highway directly affected by the project, and the
  degree to which the project is designed to reduce congestion,
  improve traffic safety, and enhance connectivity.
         Sec. 222.134.  SOURCES OF MONEY DEPOSITED IN FUND. The
  commission may deposit in the fund money derived from any source
  available to the commission, including:
               (1)  if appropriated by the legislature for that
  purpose:
                     (A)  the proceeds of bonds issued under Section
  222.003;
                     (B)  the proceeds of bonds authorized by Section
  49-p, Article III, Texas Constitution, if the law providing for the
  issuance of the bonds does not prohibit the deposit of the proceeds
  in the fund;
                     (C)  money provided by the commission from the
  state highway fund;
                     (D)  money provided by the commission from the
  Texas Mobility Fund that is in excess of the money required to be on
  deposit in the Texas Mobility Fund by the proceedings authorizing
  Texas Mobility Fund bonds and credit agreements; and
                     (E)  other direct appropriations;
               (2)  repayments of principal and interest on loans made
  under Section 222.137;
               (3)  the proceeds from the sale of loans under Section
  222.140;
               (4)  the proceeds from the sale of fund revenue bonds;
  and
               (5)  gifts and grants.
         Sec. 222.135.  FUND REVENUE BONDS. (a)  The commission may
  issue, sell, and deliver fund revenue bonds for the purpose of
  providing money for the fund.
         (b)  Fund revenue bonds are special obligations of the
  commission payable from the repayment of loans from the fund and
  other money on deposit in the fund as the commission may designate.
         (c)  Fund revenue bonds do not constitute a debt of the state
  or a pledge of the faith and credit of the state.
         (d)  The commission by order or resolution may issue fund
  revenue bonds in the name and on behalf of the state and the
  department and may enter into credit agreements related to the
  bonds. The bonds may be issued in multiple series and issues from
  time to time and may be issued on the terms and with the provisions
  the commission determines appropriate and in the interests of the
  state.
         (e)  The commission has all powers necessary or appropriate
  to carry out this section, including the powers granted to other
  bond-issuing governmental agencies and units and to nonprofit
  corporations by Chapters 1201, 1207, and 1371, Government Code.
         (f)  Before the issuance of fund revenue bonds or credit
  agreements, the commission shall submit the record of proceedings
  of the commission authorizing the issuance, execution, and delivery
  of the bonds or credit agreement and any contract providing revenue
  or security to pay the bonds or credit agreement to the attorney
  general for review. If the attorney general finds that the
  proceedings authorizing a bond or credit agreement and any bonds
  authorized in the proceedings conform to the requirements of the
  Texas Constitution and this subchapter, the attorney general shall
  approve the proceedings and the bonds and deliver to the
  comptroller for registration a copy of the attorney general's legal
  opinion stating that approval and the record of proceedings. After
  approval, the bonds or credit agreement may be executed and
  delivered, exchanged, or refinanced from time to time in accordance
  with those authorizing proceedings.
         (g)  If the proceedings and any bonds authorized in the
  proceedings are approved by the attorney general and registered by
  the comptroller as provided above, the bonds or credit agreement,
  as applicable, or a contract providing revenue or security included
  in or executed and delivered according to the authorizing
  proceedings are incontestable in a court or other forum and are
  valid, binding, and enforceable according to their terms.
         (h)  The proceeds from the sale of fund revenue bonds may be
  used to finance other funds or accounts relating to the bonds or
  credit agreement, including a debt service reserve fund, and to pay
  the costs of issuance. All remaining proceeds received from the
  sale of the bonds shall be deposited in the fund and invested and
  used as provided by this subchapter.
         Sec. 222.136.  INVESTMENT OF MONEY IN THE FUND. (a)  Money
  in the fund may be invested as provided by Chapter 2256, Government
  Code, except that the proceeds of bonds deposited in the fund under
  Section 222.134 shall be subject to any limitations contained in
  the documents authorizing the issuance of the bonds.
         (b)  Income received from the investment of money in the fund
  shall be deposited in the fund, subject to requirements that may be
  imposed by the proceedings authorizing bonds issued to provide
  money for deposit in the fund that are necessary to protect the
  tax-exempt status of interest payable on the bonds in accordance
  with applicable law of the United States concerning federal income
  taxation of interest on the bonds. Investment income shall be
  deposited in an account or subaccount in the fund as determined by
  the department.
         Sec. 222.137.  USES OF MONEY IN THE FUND. (a)  Except as
  otherwise provided by this section, the commission may use money
  held in the fund to provide financial assistance to a public entity,
  including the department, for the costs of a transportation project
  by:
               (1)  making loans, including through the purchase of
  obligations of the public entity;
               (2)  providing liquidity or credit enhancement,
  including through the agreement to loan to or purchase bonds,
  notes, or other obligations from a public entity;
               (3)  serving as a reserve fund established in
  connection with debt financing by the public entity;
               (4)  providing capitalized interest for debt financing
  by the public entity; or
               (5)  providing a guarantee of the payment of the costs
  of operations and maintenance of a transportation project.
         (b)  The proceeds of bonds authorized by Section 49-p,
  Article III, Texas Constitution, or issued under Section 222.003
  may only be used to provide financial assistance for highway
  improvement projects, subject to any limitations provided by law.
         (c)  Money from the state highway fund may only be used for
  the purposes for which revenues are dedicated under Section 7-a,
  Article VIII, Texas Constitution.
         (d)  Money from the Texas Mobility Fund may only be used to
  provide financial assistance for state highway improvement
  projects, publicly owned toll roads, and public transportation
  projects, whether on or off of the state highway system, subject to
  any limitations provided by law.
         (e)  Money in the fund may be used to pay debt service on fund
  revenue bonds.
         (f)  The commission may require the payment of reasonable
  fees and other amounts by a public entity for all forms of financial
  assistance provided under this section.
         (g)  The department shall monitor the use of financial
  assistance provided to a public entity to ensure the financial
  assistance is used for purposes authorized by law and may audit the
  books and records of a public entity for this purpose.
         Sec. 222.138.  BORROWING FROM THE FUND BY PUBLIC ENTITY.
  (a)  A public entity, including a municipality, county, district,
  authority, agency, department, board, or commission, that is
  authorized by law to construct, maintain, or finance a
  transportation project may borrow money from the fund, including by
  direct loan or other financial assistance from the fund, and may
  enter into any agreement relating to receiving financial assistance
  from the fund.
         (b)  Money received by a public entity under this subchapter
  must be segregated from other funds under the control of the public
  entity and may only be used for purposes authorized by this
  subchapter.
         (c)  To provide for the repayment of a loan or other
  financial assistance, a public entity may:
               (1)  pledge revenues or income from any available
  source;
               (2)  pledge, levy, and collect any taxes, subject to
  any constitutional limitation; or
               (3)  pledge any combination of revenues, income, and
  taxes.
         (d)  This section is wholly sufficient authority for a public
  entity to borrow or otherwise obtain financial assistance from the
  fund as authorized by this subchapter and to pledge revenues,
  income, or taxes, or any combination of revenues, income, and
  taxes, to the repayment of a loan or other financial assistance.
         Sec. 222.139.  REPAYMENT TERMS; DEPOSIT OF REPAYMENTS.
  (a)  For financial assistance that must be repaid, the commission
  shall determine the terms and conditions of the repayment,
  including the interest rates to be charged.
         (b)  The commission may require the entity receiving
  financial assistance that must be repaid to make charges, levy and
  collect taxes, pledge revenues, or otherwise take such action as
  may be necessary to provide for money in an amount sufficient for
  repayment according to the terms agreed on at the time the financial
  assistance is provided.
         (c)  For a tolled highway improvement project, the
  commission, in lieu of requiring the repayment of financial
  assistance and any interest thereon, may require that revenues from
  the project be shared between the entity and the department, and the
  entity and the department may enter into an agreement specifying
  the terms and conditions of the revenue sharing.
         (d)  The department shall deposit in the fund all amounts
  received from repayment of the financial assistance or as a share of
  revenues from a tolled highway improvement project.
         Sec. 222.140.  SALE OF LOANS. (a)  As used in this section,
  "loan" includes any financial assistance that must be repaid or any
  portion of such assistance.
         (b)  The commission may sell any loans made from money in the
  fund and shall deposit the proceeds of the sale in the fund.
         (c)  For any loans to be sold under this section, the
  commission may submit to the attorney general for review and
  approval the related financial assistance agreement, which shall,
  for the purposes of Chapter 1202, Government Code, be considered to
  be a public security, along with the record of proceedings of the
  borrowing entity relating to the agreement. If the attorney
  general approves the agreement, it shall be incontestable in a
  court or other forum and is valid, binding, and enforceable
  according to its terms as provided by Chapter 1202, Government
  Code.
         (d)  The commission must sell the loans using a competitive
  bidding process and at the price and under the terms and conditions
  that it determines to be reasonable.
         (e)  As part of the sales agreement with the purchaser of a
  loan, the commission may agree to perform the functions required to
  enforce the conditions and requirements stated in the loans,
  including the payment of debt service by the borrowing entity.
         (f)  The commission may exercise any powers necessary to
  carry out the authority granted by this section, including the
  authority to contract with any person to accomplish the purposes of
  this section.
         (g)  The commission shall not be liable for the repayment of,
  and may not repay, any loan sold under this section.
         Sec. 222.141.  WAIVER OF SOVEREIGN IMMUNITY. A public
  entity receiving financial assistance under this subchapter and the
  department may agree to waive sovereign immunity to suit for the
  purpose of adjudicating a claim to enforce any of their obligations
  brought by a party for breach of the terms of the financial
  assistance agreement.
         Sec. 222.142.  IMPLEMENTATION BY RULE. (a)  The commission
  shall adopt rules to implement this subchapter, including rules:
               (1)  establishing eligibility and prioritization
  criteria for entities applying for financial assistance from the
  fund and for transportation projects that may receive financial
  assistance from the fund;
               (2)  specifying the method for setting the terms and
  conditions for providing financial assistance from the fund and for
  the repayment of financial assistance from the fund; and
               (3)  establishing procedures for the sale of loans
  originated from amounts on deposit in the fund.
         (b)  The eligibility and prioritization criteria described
  in Subsection (a)(1) shall provide that financial assistance made
  available for the delivery of a transportation project by the
  department may not be in a larger amount or on more favorable terms
  than the financial assistance requested and previously offered for
  the delivery of that transportation project by a public entity, if
  any.
         (c)  The commission shall appoint a rules advisory committee
  to advise the department and the commission on the development of
  the commission's initial rules required by this section. The
  committee must include one or more members representing a local
  toll project entity, as defined in Section 228.0111. Chapter 2110,
  Government Code, does not apply to the committee. This subsection
  expires on the date the commission adopts initial rules under this
  section.
         SECTION 16.02.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution. If this Act does not receive the vote necessary for
  immediate effect, this article takes effect September 1, 2009.
  ARTICLE 17. USE OF STATE HIGHWAY FUND IN CONNECTION WITH CERTAIN
  TOLL FACILITIES
         SECTION 17.01.  Section 222.001, Transportation Code, is
  amended to read as follows:
         Sec. 222.001.  USE OF STATE HIGHWAY FUND. (a)  Money that is
  required to be used for public roadways by the Texas Constitution or
  federal law and that is deposited in the state treasury to the
  credit of the state highway fund, including money deposited to the
  credit of the state highway fund under Title 23, United States Code,
  may be used only:
               (1)  to improve the state highway system;
               (2)  to mitigate adverse environmental effects that
  result directly from construction or maintenance of a state highway
  by the department; or
               (3)  by the Department of Public Safety to police the
  state highway system and to administer state laws relating to
  traffic and safety on public roads.
         (b)  Notwithstanding Section 222.103, the department may not
  pledge or otherwise encumber money deposited in the state highway
  fund to:
               (1)  guarantee a loan obtained by a public or private
  entity for costs associated with a toll facility of the public or
  private entity; or
               (2)  insure bonds issued by a public or private entity
  for costs associated with a toll facility of the public or private
  entity.
         SECTION 17.02.  Section 222.001(b), Transportation Code, as
  added by this article, applies only to an agreement to pledge or
  otherwise encumber money in the state highway fund that is entered
  into on or after the effective date of this Act, except that that
  section does not apply to an agreement to pledge or otherwise
  encumber money in the state highway fund that is associated with the
  following projects, regardless of whether the agreement is
  finalized on or after the effective date of this Act:
               (1)  the State Highway 161 project in Dallas County;
               (2)  the Southwest Parkway (State Highway 121) in
  Tarrant County from Interstate Highway 30 to Dirks Road/Altamesa
  Boulevard and the Chisholm Trail project from Dirks Road/Altamesa
  Boulevard to U.S. Highway 67 in the city of Cleburne;
               (3)  a project associated with the highway designated
  as the Trinity Parkway in the city of Dallas;
               (4)  the Grand Parkway project (State Highway 99);
               (5)  the Hidalgo Loop project in Hidalgo County from
  U.S. Highway 83 near the Pharr-Reynosa International Bridge to the
  U.S. Highway 83 Expressway in Penitas to U.S. Highway 281 north of
  Edinburg to U.S. Highway 83 west of Farm-to-Market Road 1423 to U.S.
  Highway 83 near the Pharr-Reynosa International Bridge;
               (6)  the U.S. Highway 290 project from east of U.S.
  Highway 183 to east of Farm-to-Market Road 734 in Travis County;
               (7)  the State Highway 71 East project from Riverside
  Drive east to east of State Highway 130 and including the
  interchange at State Highway 71 East/U.S. Highway 183 South in
  Travis County;
               (8)  the U.S. Highway 183 South project from Springdale
  Road south to State Highway 71 East in Travis County;
               (9)  the Loop 1 added capacity project, comprised of
  the addition of a managed lane on Loop 1 from Parmer Lane to State
  Highway 45 South in Travis County;
               (10)  any transaction related to the acquisition by a
  regional mobility authority, a regional tollway authority, or a
  county acting under Chapter 284 of a toll project of the department
  all or a portion of which was existing and in operation prior to
  September 1, 2009;
               (11)  any transaction related to the assumption by a
  regional mobility authority, a regional tollway authority, or a
  county acting under Chapter 284 of the operations of a toll project
  of the department all or a portion of which was existing and in
  operation prior to September 1, 2009;
               (12)  the Loop 49 project from U.S. Highway 69 north of
  Lindale to State Highway 110 in Smith County; or
               (13)  the U.S. Highway 281 project in Bexar County from
  Loop 1604 to the Comal County line and including five direct
  connectors at the Loop 1604/U.S. Highway 281 interchange.
         SECTION 17.03.  This article takes effect immediately if
  this Act receives a vote of two-thirds of all the members elected to
  each house, as provided by Section 39, Article III, Texas
  Constitution. If this Act does not receive the vote necessary for
  immediate effect, this article takes effect September 1, 2009.
  ARTICLE 18. USED AUTOMOTIVE PARTS RECYCLERS
         SECTION 18.01.  Section 2302.001(6), Occupations Code, is
  amended to read as follows:
               (6)  "Salvage vehicle agent" means a person who
  acquires, sells, or otherwise deals in nonrepairable or salvage
  motor vehicles [or used parts] in this state as directed by the
  salvage vehicle dealer under whose license the person operates.
  The term does not include a person who:
                     (A)  is a licensed salvage vehicle dealer or a
  licensed used automotive parts recycler;
                     (B)  is a partner, owner, or officer of a business
  entity that holds a salvage vehicle dealer license or a used
  automotive parts recycler license;
                     (C)  is an employee of a licensed salvage vehicle
  dealer or a licensed used automotive parts recycler; or
                     (D)  only transports salvage motor vehicles for a
  licensed salvage vehicle dealer or a licensed used automotive parts
  recycler.
         SECTION 18.02.  Section 2302.006(b), Occupations Code, is
  amended to read as follows:
         (b)  This chapter applies to a transaction in which a motor
  vehicle:
               (1)  is sold, transferred, released, or delivered to a
  metal recycler for the purpose of reuse or resale as a motor vehicle
  [or as a source of used parts]; and
               (2)  is used for that purpose.
         SECTION 18.03.  Subchapter A, Chapter 2302, Occupations
  Code, is amended by adding Section 2302.008 to read as follows:
         Sec. 2302.008.  APPLICABILITY OF CHAPTER TO USED AUTOMOTIVE
  PARTS RECYCLERS. This chapter does not apply to a used automotive
  parts recycler licensed under Chapter 2309.
         SECTION 18.04.  Section 2302.103(b), Occupations Code, is
  amended to read as follows:
         (b)  An applicant may apply for a salvage vehicle dealer
  license with an endorsement in one or more of the following
  classifications:
               (1)  new automobile dealer;
               (2)  used automobile dealer;
               (3)  [used vehicle parts dealer;
               [(4)]  salvage pool operator;
               (4) [(5)]  salvage vehicle broker; or
               (5) [(6)]  salvage vehicle rebuilder.
         SECTION 18.05.  Section 2302.107(d), Occupations Code, is
  amended to read as follows:
         (d)  A salvage vehicle agent may acquire, sell, or otherwise
  deal in, nonrepairable or salvage motor vehicles [or used parts] as
  directed by the authorizing dealer.
         SECTION 18.06.  Section 2302.202, Occupations Code, is
  amended to read as follows:
         Sec. 2302.202.  RECORDS OF PURCHASES. A salvage vehicle
  dealer shall maintain a record of each salvage motor vehicle [and
  each used part] purchased or sold by the dealer.
         SECTION 18.07.  Subtitle A, Title 14, Occupations Code, is
  amended by adding Chapter 2309 to read as follows:
  CHAPTER 2309. USED AUTOMOTIVE PARTS RECYCLERS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2309.001.  SHORT TITLE. This chapter may be cited as
  the Texas Used Automotive Parts Recycling Act.
         Sec. 2309.002.  DEFINITIONS. In this chapter:
               (1)  "Insurance company," "metal recycler," "motor
  vehicle," "nonrepairable motor vehicle," "nonrepairable vehicle
  title," "salvage motor vehicle," "salvage vehicle title," and
  "salvage vehicle dealer" have the meanings assigned by Section
  501.091, Transportation Code.
               (2)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (3)  "Department" means the Texas Department of
  Licensing and Regulation.
               (4)  "Executive director" means the executive director
  of the department.
               (5)  "Used automotive part" has the meaning assigned to
  "used part" by Section 501.091, Transportation Code.
               (6)  "Used automotive parts recycler" means a person
  licensed under this chapter to operate a used automotive parts
  recycling business.
               (7)  "Used automotive parts recycling" means the
  dismantling and reuse or resale of used automotive parts and the
  safe disposal of salvage motor vehicles or nonrepairable motor
  vehicles, including the resale of those vehicles.
         Sec. 2309.003.  APPLICABILITY OF CHAPTER TO METAL RECYCLERS.
  (a)  Except as provided by Subsection (b), this chapter does not
  apply to a transaction to which a metal recycler is a party.
         (b)  This chapter applies to a transaction in which a motor
  vehicle:
               (1)  is sold, transferred, released, or delivered to a
  metal recycler as a source of used automotive parts; and
               (2)  is used as a source of used automotive parts.
         Sec. 2309.004.  APPLICABILITY OF CHAPTER TO SALVAGE VEHICLE
  DEALERS. (a)  Except as provided by Subsection (b), this chapter
  does not apply to a transaction in which a salvage vehicle dealer is
  a party.
         (b)  This chapter applies to a salvage vehicle dealer who
  deals in used automotive parts as more than an incidental part of
  the salvage vehicle dealer's primary business.
         Sec. 2309.005.  APPLICABILITY OF CHAPTER TO INSURANCE
  COMPANIES. This chapter does not apply to an insurance company.
  [Sections 2309.006-2309.050 reserved for expansion]
  SUBCHAPTER B. ADVISORY BOARD
         Sec. 2309.051.  USED AUTOMOTIVE PARTS RECYCLING ADVISORY
  BOARD. (a)  The advisory board consists of five members
  representing the used automotive parts industry in this state
  appointed by the presiding officer of the commission with the
  approval of the commission.
         (b)  The advisory board shall include members who represent
  used automotive parts businesses owned by domestic entities, as
  defined by Section 1.002, Business Organizations Code.
         (c)  The advisory board shall include one member who
  represents a used automotive parts business owned by a foreign
  entity, as defined by Section 1.002, Business Organizations Code.
         (d)  Appointments to the advisory board shall be made without
  regard to the race, color, disability, sex, religion, age, or
  national origin of the appointee.
         Sec. 2309.052.  TERMS; VACANCIES. (a)  Advisory board
  members serve terms of six years, with the terms of one or two
  members expiring on February 1 of each odd-numbered year.
         (b)  A member may not serve more than two full consecutive
  terms.
         (c)  If a vacancy occurs during a term, the presiding officer
  of the commission shall appoint a replacement who meets the
  qualifications of the vacated position to serve for the remainder
  of the term.
         Sec. 2309.053.  PRESIDING OFFICER. The presiding officer of
  the commission shall appoint one of the advisory board members to
  serve as presiding officer of the advisory board for a term of one
  year. The presiding officer of the advisory board may vote on any
  matter before the advisory board.
         Sec. 2309.054.  POWERS AND DUTIES OF ADVISORY BOARD. The
  advisory board shall provide advice and recommendations to the
  department on technical matters relevant to the administration and
  enforcement of this chapter, including licensing standards,
  continuing education requirements, and examination content, if
  applicable.
         Sec. 2309.055.  COMPENSATION; REIMBURSEMENT OF EXPENSES.
  Advisory board members may not receive compensation but are
  entitled to reimbursement for actual and necessary expenses
  incurred in performing the functions of the advisory board, subject
  to the General Appropriations Act.
         Sec. 2309.056.  MEETINGS. The advisory board shall meet
  twice annually and may meet at other times at the call of the
  presiding officer of the commission or the executive director.
  [Sections 2309.057-2309.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT
         Sec. 2309.101.  GENERAL POWERS AND DUTIES. The executive
  director or commission, as appropriate, may take action as
  necessary to administer and enforce this chapter.
         Sec. 2309.102.  RULES. (a)  The commission shall adopt
  rules for licensing used automotive parts recyclers and used
  automotive parts employees.
         (b)  The commission by rule shall adopt standards of conduct
  for license holders under this chapter.
         Sec. 2309.103.  EXAMINATION OF CRIMINAL CONVICTION. The
  department may conduct an examination of any criminal conviction or
  deferred adjudication of an applicant, including by obtaining any
  criminal history record information permitted by law.
         Sec. 2309.104.  FEES. The commission shall establish and
  collect reasonable and necessary fees in amounts sufficient to
  cover the costs of administering this chapter.
         Sec. 2309.105.  RULES RESTRICTING ADVERTISING OR
  COMPETITIVE BIDDING. (a)  The commission may not adopt a rule
  restricting advertising or competitive bidding by a person who
  holds a license issued under this chapter except to prohibit false,
  misleading, or deceptive practices by the person.
         (b)  The commission may not include in its rules to prohibit
  false, misleading, or deceptive practices a rule that:
               (1)  restricts the use of any advertising medium;
               (2)  restricts the person's personal appearance or use
  of the person's voice in an advertisement;
               (3)  relates to the size or duration of an
  advertisement by the person; or
               (4)  restricts the use of a trade name in advertising by
  the person.
         Sec. 2309.106.  PERIODIC AND RISK-BASED INSPECTIONS.
  (a)  The department shall inspect each used automotive parts
  recycling facility at least once every two years.
         (b)  The department may enter and inspect at any time during
  business hours:
               (1)  the place of business of any person regulated
  under this chapter; or
               (2)  any place in which the department has reasonable
  cause to believe that a license holder is in violation of this
  chapter or in violation of a rule or order of the commission or
  executive director.
         (c)  The department shall conduct additional inspections
  based on a schedule of risk-based inspections using the following
  criteria:
               (1)  the type and nature of the used automotive parts
  recycler;
               (2)  the inspection history;
               (3)  any history of complaints involving a used
  automotive parts recycler; and
               (4)  any other factor determined by the commission by
  rule.
         (d)  A used automotive parts recycler shall pay a fee for
  each risk-based inspection performed under this section. The
  commission by rule shall set the amount of the fee.
         (e)  In conducting an inspection under this section, the
  department may inspect a facility, a used automotive part, a
  business record, or any other place or thing reasonably required to
  enforce this chapter or a rule or order adopted under this chapter.
         Sec. 2309.107.  PERSONNEL. The department may employ
  personnel necessary to administer and enforce this chapter.
  [Sections 2309.108-2309.150 reserved for expansion]
  SUBCHAPTER D. LICENSE REQUIREMENTS
         Sec. 2309.151.  USED AUTOMOTIVE PARTS RECYCLER LICENSE
  REQUIRED. (a)  Unless the person holds a used automotive parts
  recycler license issued under this chapter, a person may not own or
  operate a used automotive parts recycling business or sell used
  automotive parts.
         (b)  A used automotive parts recycler license:
               (1)  is valid only with respect to the person who
  applied for the license; and
               (2)  authorizes the license holder to operate a used
  automotive parts recycling business only at the one facility listed
  on the license.
         Sec. 2309.152.  GENERAL LICENSE APPLICATION REQUIREMENTS.
  An applicant for a used automotive parts recycler license under
  this chapter must submit to the department:
               (1)  a completed application on a form prescribed by
  the executive director;
               (2)  the required fees; and
               (3)  any other information required by commission rule.
         Sec. 2309.153.  LICENSE REQUIREMENTS. An applicant for a
  used automotive parts recycler license under this chapter must
  provide in a manner prescribed by the executive director:
               (1)  a federal tax identification number;
               (2)  proof of insurance in the amount prescribed by the
  executive director;
               (3)  proof of ownership or lease of the property where
  the applicant will operate a used automotive parts recycling
  facility; and
               (4)  proof of a storm water permit if the applicant is
  required by the Texas Commission on Environmental Quality to obtain
  a permit.
         Sec. 2309.154.  USED AUTOMOTIVE PARTS EMPLOYEE LICENSE
  REQUIRED. (a)  A person employed by a used automotive parts
  recycler may not in the scope of the person's employment acquire a
  vehicle or used automotive parts and may not sell used automotive
  parts unless the person holds a used automotive parts employee
  license issued under this chapter.
         (b)  The commission by rule shall adopt requirements for the
  application for and issuance of a used automotive parts employee
  license under this chapter.
         Sec. 2309.155.  NONTRANSFERABILITY OF LICENSE. A license
  issued by the executive director is valid throughout this state and
  is not transferable.
         Sec. 2309.156.  LICENSE RENEWAL. (a)  A license issued
  under this chapter is valid for one year. The department may adopt
  a system under which licenses expire at different times during the
  year.
         (b)  The department shall notify the license holder at least
  30 days before the date a license expires. The notice must be in
  writing and sent to the license holder's last known address
  according to the records of the department.
         (c)  The commission by rule shall adopt requirements to renew
  a license issued under this chapter.
  [Sections 2309.157-2309.200 reserved for expansion]
  SUBCHAPTER E. LOCAL REGULATION
         Sec. 2309.201.  APPLICABILITY OF CERTAIN MUNICIPAL
  ORDINANCES, LICENSES, AND PERMITS. (a)  The requirements of this
  chapter apply in addition to the requirements of any applicable
  municipal ordinance relating to the regulation of a person who
  deals in nonrepairable or salvage motor vehicles or used automotive
  parts.
         (b)  This chapter does not prohibit the enforcement of an
  applicable municipal license or permit requirement that is related
  to an activity regulated under this chapter.
  [Sections 2309.202-2309.250 reserved for expansion]
  SUBCHAPTER F. ENFORCEMENT
         Sec. 2309.251.  ADMINISTRATIVE PENALTY. (a)  The
  commission may impose an administrative penalty on a person under
  Subchapter F, Chapter 51, regardless of whether the person holds a
  license under this chapter, if the person violates:
               (1)  this chapter or a rule adopted under this chapter;
  or
               (2)  a rule or order of the executive director or
  commission.
         (b)  An administrative penalty may not be imposed unless the
  person charged with a violation is provided the opportunity for a
  hearing.
         Sec. 2309.252.  CEASE AND DESIST ORDER; INJUNCTION; CIVIL
  PENALTY. (a)  The executive director may issue a cease and desist
  order as necessary to enforce this chapter if the executive
  director determines that the action is necessary to prevent a
  violation of this chapter and to protect public health and safety.
         (b)  The attorney general or executive director may
  institute an action for an injunction or a civil penalty under this
  chapter as provided by Section 51.352.
         Sec. 2309.253.  SANCTIONS. The department may impose
  sanctions as provided by Section 51.353.
         Sec. 2309.254.  CRIMINAL PENALTY; LICENSING. (a)  A person
  commits an offense if the person:
               (1)  violates the licensing requirements of this
  chapter;
               (2)  deals in used parts without a license required by
  this chapter; or
               (3)  employs an individual who does not hold the
  appropriate license required by this chapter.
         (b)  An offense under this section is a Class C misdemeanor.
  [Sections 2309.255-2309.300 reserved for expansion]
  SUBCHAPTER G. CONDUCTING BUSINESS
         Sec. 2309.301.  DUTIES ON ACQUISITION OF SALVAGE MOTOR
  VEHICLE. (a)  A used automotive parts recycler who acquires
  ownership of a salvage motor vehicle shall obtain a properly
  assigned title from the previous owner of the vehicle.
         (b)  A used automotive parts recycler who acquires ownership
  of a motor vehicle, nonrepairable motor vehicle, or salvage motor
  vehicle for the purpose of dismantling, scrapping, or destroying
  the motor vehicle, shall, before the 61st day after the date of
  acquiring the motor vehicle, submit to the Texas Department of
  Motor Vehicles a report stating that the motor vehicle will be
  dismantled, scrapped, or destroyed. The recycler shall:
               (1)  submit the report on a form prescribed by the Texas
  Department of Motor Vehicles; and
               (2)  submit with the report a properly assigned
  manufacturer's certificate of origin, regular certificate of
  title, nonrepairable vehicle title, salvage vehicle title, other
  ownership document, or comparable out-of-state ownership document
  for the motor vehicle.
         (c)  After receiving the report and title or document, the
  Texas Department of Motor Vehicles shall issue the used automotive
  parts recycler a receipt for the manufacturer's certificate of
  origin, regular certificate of title, nonrepairable vehicle title,
  salvage vehicle title, other ownership document, or comparable
  out-of-state ownership document.
         (d)  The recycler shall comply with Subchapter E, Chapter
  501, Transportation Code.
         Sec. 2309.302.  RECORDS OF PURCHASES. A used automotive
  parts recycler shall maintain a record of each motor vehicle,
  salvage motor vehicle, nonrepairable motor vehicle, and used
  automotive part purchased.
         Sec. 2309.303.  REGISTRATION OF NEW BUSINESS LOCATION.
  Before moving a place of business, a used automotive parts recycler
  must notify the department of the new location. The used automotive
  parts recycler shall provide a storm water permit for the location
  if a permit is required by the Texas Commission on Environmental
  Quality.
  [Sections 2309.304-2309.350 reserved for expansion]
  SUBCHAPTER H. ADDITIONAL DUTIES OF USED AUTOMOTIVE PARTS RECYCLER
  IN CONNECTION WITH MOTOR VEHICLE COMPONENT PARTS
         Sec. 2309.351.  DEFINITIONS. In this subchapter:
               (1)  "Component part" means a major component part as
  defined by Section 501.091, Transportation Code, or a minor
  component part.
               (2)  "Interior component part" means a motor vehicle's
  seat or radio.
               (3)  "Minor component part" means an interior component
  part, a special accessory part, or a motor vehicle part that
  displays or should display at least one of the following:
                     (A)  a federal safety certificate;
                     (B)  a motor number;
                     (C)  a serial number or a derivative; or
                     (D)  a manufacturer's permanent vehicle
  identification number or a derivative.
               (4)  "Special accessory part" means a motor vehicle's
  tire, wheel, tailgate, or removable glass top.
         Sec. 2309.352.  REMOVAL OF LICENSE PLATES. Immediately on
  receipt of a motor vehicle, a used automotive parts recycler shall:
               (1)  remove any unexpired license plates from the
  vehicle; and
               (2)  place the license plates in a secure place until
  destroyed by the used automotive parts recycler.
         Sec. 2309.353.  RECEIPT OF MOTOR VEHICLE. A used automotive
  parts recycler may not take delivery of a motor vehicle unless the
  recycler first obtains:
               (1)  a certificate of authority to dispose of the
  vehicle, a sales receipt, or a transfer document for the vehicle
  issued under Chapter 683, Transportation Code; or
               (2)  a certificate of title showing that there are no
  liens on the vehicle or that all recorded liens have been released.
         Sec. 2309.354.  RECORD OF PURCHASE; INVENTORY OF PARTS.
  (a)  A used automotive parts recycler shall keep an accurate and
  legible inventory of each used component part purchased by or
  delivered to the recycler. The inventory must contain a record of
  each part that includes:
               (1)  the date of purchase or delivery;
               (2)  the driver's license number of the seller and a
  legible photocopy of the seller's driver's license;
               (3)  the license plate number of the motor vehicle in
  which the part was delivered;
               (4)  a complete description of the part and, if
  applicable, the make, model, color, and size of the part; and
               (5)  the vehicle identification number of the motor
  vehicle from which the part was removed.
         (b)  As an alternative to the information required by
  Subsection (a), a used automotive parts recycler may record:
               (1)  the name of the person who sold the part or the
  motor vehicle from which the part was obtained; and
               (2)  the Texas certificate of inventory number or the
  federal taxpayer identification number of the person.
         (c)  The department shall prescribe the form of the record
  required by Subsection (a) and shall make the form available to used
  automotive parts recyclers.
         (d)  This section does not apply to:
               (1)  an interior component part or special accessory
  part from a motor vehicle more than 10 years old; or
               (2)  a part delivered to a used automotive parts
  recycler by a commercial freight line, commercial carrier, or
  licensed used automotive parts recycler.
         Sec. 2309.355.  ASSIGNMENT OF INVENTORY NUMBER. (a)  A used
  automotive parts recycler shall:
               (1)  assign a unique inventory number to each
  transaction in which the recycler purchases or takes delivery of a
  component part;
               (2)  attach that inventory number to each component
  part the recycler obtains in the transaction; and
               (3)  retain each component part in its original
  condition on the business premises of the recycler for at least
  three calendar days, excluding Sundays, after the date the recycler
  obtains the part.
         (b)  An inventory number attached to a component part under
  Subsection (a) may not be removed while the part remains in the
  inventory of the used automotive parts recycler.
         (c)  This section does not apply to the purchase by a used
  automotive parts recycler of a nonoperational engine,
  transmission, or rear axle assembly from another used automotive
  parts recycler or an automotive-related business.
         Sec. 2309.356.  MAINTENANCE OF RECORDS. A used automotive
  parts recycler shall keep a record required under this subchapter
  on a form prescribed by the department or the Texas Department of
  Motor Vehicles. The recycler shall maintain copies of each record
  required under this subchapter until the first anniversary of the
  purchase date of the item for which the record is maintained.
         Sec. 2309.357.  SURRENDER OF CERTAIN DOCUMENTS OR LICENSE
  PLATES. (a)  On demand, a used automotive parts recycler shall
  surrender to the Texas Department of Motor Vehicles for
  cancellation a certificate of title or authority, sales receipt or
  transfer document, license plate, or inventory list that the
  recycler is required to possess or maintain.
         (b)  The Texas Department of Motor Vehicles shall provide a
  signed receipt for a surrendered certificate of title.
         Sec. 2309.358.  RESALE OF SALVAGE MOTOR VEHICLES OR
  NONREPAIRABLE MOTOR VEHICLES. (a)  A used automotive parts
  recycler may sell salvage or nonrepairable vehicles only at:
               (1)  a used automotive parts recycling facility;
               (2)  a salvage pool operator's facility; or
               (3)  a metal recycling facility.
         (b)  Before reselling a salvage motor vehicle or
  nonrepairable motor vehicle at a used automotive recycling
  facility, a used automotive parts recycler must post notice on the
  vehicle of the type of title appropriate to the vehicle.
         Sec. 2309.359.  INSPECTION OF RECORDS. (a)  A peace officer
  at any reasonable time may inspect a record required to be
  maintained under this subchapter, including an inventory record.
         (b)  On demand by a peace officer, a used automotive parts
  recycler shall provide to the officer a copy of a record required to
  be maintained under this subchapter.
         (c)  A peace officer may inspect the inventory on the
  premises of a used automotive parts recycler at any reasonable time
  to verify, check, or audit the records required to be maintained
  under this subchapter.
         (d)  A used automotive parts recycler or an employee of the
  recycler shall allow and may not interfere with a peace officer's
  inspection of the recycler's inventory, premises, or required
  inventory records.
  [Sections 2309.360-2309.400 reserved for expansion]
  SUBCHAPTER I. MOTOR VEHICLE SALVAGE YARDS IN CERTAIN COUNTIES
         Sec. 2309.401.  APPLICABILITY OF SUBCHAPTER. This
  subchapter applies only to a used automotive parts facility located
  in a county with a population of 2.8 million or more.
         Sec. 2309.402.  LIMITS ON OPERATION OF HEAVY MACHINERY.
  (a)  A used automotive parts recycler may not operate heavy
  machinery in a used automotive parts recycling facility between the
  hours of 7 p.m. of one day and 7 a.m. of the following day.
         (b)  This section does not apply to conduct necessary to a
  sale or purchase by the recycler.
         SECTION 18.08.  Section 501.091, Transportation Code, is
  amended by amending Subdivision (17) and adding Subdivision (20) to
  read as follows:
               (17)  "Salvage vehicle dealer" means a person engaged
  in this state in the business of acquiring, selling, [dismantling,]
  repairing, rebuilding, reconstructing, or otherwise dealing in
  nonrepairable motor vehicles, salvage motor vehicles, or, if
  incidental to a salvage motor vehicle dealer's primary business,
  used automotive parts. The term does not include a person who
  casually repairs, rebuilds, or reconstructs fewer than five [three]
  salvage motor vehicles in the same calendar year or, except as
  provided by Paragraph (C), a used automotive parts recycler. The
  term includes a person engaged in the business of:
                     (A)  a salvage vehicle dealer, regardless of
  whether the person holds a license issued by the department to
  engage in that business;
                     (B)  dealing in nonrepairable motor vehicles or
  salvage motor vehicles[, regardless of whether the person deals in
  used parts]; or
                     (C)  a used automotive parts recycler if the sale
  of repaired, rebuilt, or reconstructed nonrepairable motor
  vehicles or salvage motor vehicles is more than an incidental part
  of the used automotive parts recycler's business [dealing in used
  parts regardless of whether the person deals in nonrepairable motor
  vehicles or salvage motor vehicles].
               (20)  "Used parts dealer" and "used automotive parts
  recycler" have the meaning assigned to "used automotive parts
  recycler" by Section 2309.002, Occupations Code.
         SECTION 18.09.  Section 501.092(d), Transportation Code, is
  amended to read as follows:
         (d)  An insurance company may sell a motor vehicle to which
  this section applies, or assign a salvage vehicle title or a
  nonrepairable vehicle title for the motor vehicle, only to a
  salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
  sale at auction, [or] a metal recycler, or a used automotive parts
  recycler. If the motor vehicle is not a salvage motor vehicle or a
  nonrepairable motor vehicle, the insurance company is not required
  to surrender the regular certificate of title for the vehicle or to
  be issued a salvage vehicle title or a nonrepairable vehicle title
  for the motor vehicle.
         SECTION 18.10.  Sections 501.095(a) and (b), Transportation
  Code, are amended to read as follows:
         (a)  If the department has not issued a nonrepairable vehicle
  title or salvage vehicle title for the motor vehicle and an
  out-of-state ownership document for the motor vehicle has not been
  issued by another state or jurisdiction, a business or governmental
  entity described by Subdivisions (1)-(3) may sell, transfer, or
  release a nonrepairable motor vehicle or salvage motor vehicle only
  to a person who is:
               (1)  a licensed salvage vehicle dealer, a used
  automotive parts recycler under Chapter 2309, Occupations Code, or
  a metal recycler under Chapter 2302, Occupations Code;
               (2)  an insurance company that has paid a claim on the
  nonrepairable or salvage motor vehicle;
               (3)  a governmental entity; or
               (4)  an out-of-state buyer.
         (b)  A person, other than a salvage vehicle dealer, a used
  automotive parts recycler, or an insurance company licensed to do
  business in this state, who acquired ownership of a nonrepairable
  or salvage motor vehicle that has not been issued a nonrepairable
  vehicle title, salvage vehicle title, or a comparable ownership
  document issued by another state or jurisdiction shall, before
  selling the motor vehicle, surrender the properly assigned
  certificate of title for the motor vehicle to the department and
  apply to the department for:
               (1)  a nonrepairable vehicle title if the vehicle is a
  nonrepairable motor vehicle; or
               (2)  a salvage vehicle title if the vehicle is a salvage
  motor vehicle.
         SECTION 18.11.  Section 501.105, Transportation Code, is
  amended to read as follows:
         Sec. 501.105.  RETENTION OF RECORDS RELATING TO CERTAIN
  CASUAL SALES. Each licensed salvage vehicle dealer, used
  automotive parts recycler, or insurance company that sells a
  nonrepairable motor vehicle or a salvage motor vehicle at a casual
  sale shall keep on the business premises of the dealer or the
  insurance company a list of all casual sales made during the
  preceding 36-month period that contains:
               (1)  the date of the sale;
               (2)  the name of the purchaser;
               (3)  the name of the jurisdiction that issued the
  identification document provided by the purchaser, as shown on the
  document; and
               (4)  the vehicle identification number.
         SECTION 18.12.  Section 2302.253, Occupations Code, is
  repealed.
         SECTION 18.13.  Not later than January 1, 2010, the Texas
  Commission of Licensing and Regulation shall adopt rules under
  Section 2309.102, Occupations Code, as added by this article.
         SECTION 18.14.  Sections 2309.151 and 2309.154, Occupations
  Code, as added by this article, and Subchapter F, Chapter 2309,
  Occupations Code, as added by this article, take effect September
  1, 2010.
  ARTICLE 19. TRANS-TEXAS CORRIDOR
         SECTION 19.01.  Section 11.11(j), Tax Code, is amended to
  read as follows:
         (j)  For purposes of this section, any portion of a facility
  owned by the Texas Department of Transportation that is [part of the
  Trans-Texas Corridor, is] a rail facility or system[,] or is a
  highway in the state highway system, and that is licensed or leased
  to a private entity by that department under Chapter 91 or[,] 223,
  [or 227,] Transportation Code, is public property used for a public
  purpose if the rail facility or system, highway, or facility is
  operated by the private entity to provide transportation or utility
  services. Any part of a facility, rail facility or system, or state
  highway that is licensed or leased to a private entity for a
  commercial purpose is not exempt from taxation.
         SECTION 19.02.  Section 25.06(c), Tax Code, is amended to
  read as follows:
         (c)  This section does not apply to:
               (1)  any portion of a facility owned by the Texas
  Department of Transportation that is [part of the Trans-Texas
  Corridor, is] a rail facility or system[,] or is a highway in the
  state highway system and that is licensed or leased to a private
  entity by that department under Chapter 91[, 227,] or 361,
  Transportation Code; or
               (2)  a leasehold or other possessory interest granted
  by the Texas Department of Transportation in a facility owned by
  that department that is [part of the Trans-Texas Corridor, is] a
  rail facility or system[,] or is a highway in the state highway
  system.
         SECTION 19.03.  Section 25.07(c), Tax Code, is amended to
  read as follows:
         (c)  Subsection (a) does not apply to:
               (1)  any portion of a facility owned by the Texas
  Department of Transportation that is [part of the Trans-Texas
  Corridor, is] a rail facility or system[,] or is a highway in the
  state highway system and that is licensed or leased to a private
  entity by that department under Chapter 91[, 227,] or 361,
  Transportation Code; or
               (2)  a leasehold or other possessory interest granted
  by the Texas Department of Transportation in a facility owned by
  that department that is [part of the Trans-Texas Corridor, is] a
  rail facility or system[,] or is a highway in the state highway
  system.
         SECTION 19.04.  Sections 201.616(a) and (b), Transportation
  Code, are amended to read as follows:
         (a)  Not later than December 1 of each year, the department
  shall submit a report to the legislature that details:
               (1)  the expenditures made by the department in the
  preceding state fiscal year in connection with:
                     (A)  the unified transportation program of the
  department;
                     (B)  turnpike projects and toll roads of the
  department; and
                     (C)  [the Trans-Texas Corridor;
                     [(D)] rail facilities described in Chapter 91;
  [and
                     [(E)     non-highway facilities on the Trans-Texas
  Corridor if those expenditures are subject to Section 227.062(c);]
               (2)  the amount of bonds or other public securities
  issued for transportation projects; and
               (3)  the direction of money by the department to a
  regional mobility authority in this state.
         (b)  The report must break down information under Subsection
  (a)(1)(A) by program category and department district. The report
  must break down information under Subsections (a)(1)(B) and[,]
  (C)[, (D), and (E)] and Subsection (a)(3) by department district.
  The report must break down information under Subsection (a)(2) by
  department district and type of project.
         SECTION 19.05.  Section 202.112(a), Transportation Code, is
  amended to read as follows:
         (a)  The commission may purchase an option to acquire
  property for possible use in or in connection with a transportation
  facility[, including a facility as defined by Section 227.001,]
  before a final decision has been made as to whether the
  transportation facility will be located on that property.
         SECTION 19.06.  Section 222.003(e), Transportation Code, is
  amended to read as follows:
         (e)  The proceeds of bonds and other public securities issued
  under this section may not be used for any purpose other than any
  costs related to the bonds and other public securities and the
  purposes for which revenues are dedicated under Section 7-a,
  Article VIII, Texas Constitution. [The proceeds of bonds and other
  public securities issued under this section may not be used for the
  construction of a state highway or other facility on the
  Trans-Texas Corridor. For purposes of this section, the
  "Trans-Texas Corridor" means the statewide system of multimodal
  facilities under the jurisdiction of the department that is
  designated by the commission, notwithstanding the name given to
  that corridor.]
         SECTION 19.07.  Section 223.201(a), Transportation Code, is
  amended to read as follows:
         (a)  Subject to Section 223.202, the department may enter
  into a comprehensive development agreement with a private entity to
  design, develop, finance, construct, maintain, repair, operate,
  extend, or expand a:
               (1)  toll project;
               (2)  [facility or a combination of facilities on the
  Trans-Texas Corridor;
               [(3)]  state highway improvement project that includes
  both tolled and nontolled lanes and may include nontolled
  appurtenant facilities;
               (3) [(4)]  state highway improvement project in which
  the private entity has an interest in the project; or
               (4) [(5)]  state highway improvement project financed
  wholly or partly with the proceeds of private activity bonds, as
  defined by Section 141(a), Internal Revenue Code of 1986.
         SECTION 19.08.  Section 223.206(d), Transportation Code, is
  amended to read as follows:
         (d)  The department may not enter into a comprehensive
  development agreement with a private entity under this subchapter
  [or Section 227.023] that provides for the lease, license, or other
  use of rights-of-way or related property by the private entity for
  the purpose of constructing, operating, or maintaining an ancillary
  facility that is used for commercial purposes.
         SECTION 19.09.  Sections 223.208(c), (e), and (f),
  Transportation Code, are amended to read as follows:
         (c)  The department may enter into a comprehensive
  development agreement under this subchapter [or under Section
  227.023(c)] with a private participant only if the project is
  identified in the department's unified transportation program or is
  located on a transportation corridor identified in the statewide
  transportation plan.
         (e)  Notwithstanding anything in Section 201.112 or other
  law to the contrary, and subject to compliance with the dispute
  resolution procedures set out in the comprehensive development
  agreement, an obligation of the commission or the department under
  a comprehensive development agreement entered into under this
  subchapter [or Section 227.023(c)] to make or secure payments to a
  person because of the termination of the agreement, including the
  purchase of the interest of a private participant or other investor
  in a project, may be enforced by mandamus against the commission,
  the department, and the comptroller in a district court of Travis
  County, and the sovereign immunity of the state is waived for that
  purpose. The district courts of Travis County shall have exclusive
  jurisdiction and venue over and to determine and adjudicate all
  issues necessary to adjudicate any action brought under this
  subsection. The remedy provided by this subsection is in addition
  to any legal and equitable remedies that may be available to a party
  to a comprehensive development agreement.
         (f)  A comprehensive development agreement entered into
  under this subchapter [or Section 227.023(c)] and any obligations
  incurred, issued, or owed under the agreement does not constitute a
  state security under Chapter 1231, Government Code.
         SECTION 19.10.  Chapter 371, Transportation Code, as added
  by Chapters 103 (H.B. 570) and 258 (S.B. 11), Acts of the 80th
  Legislature, Regular Session, 2007, is reenacted, redesignated as
  Chapter 372, Transportation Code, and amended to read as follows:
  CHAPTER 372 [371].  PROVISIONS APPLICABLE TO MORE THAN ONE TYPE OF
  TOLL PROJECT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 372.001 [371.001]. DEFINITIONS. In this chapter:
               (1)  "Toll project" means a toll project described by
  Section 201.001(b), regardless of whether the toll project:
                     (A)  is a part of the state highway system; or
                     (B)  is subject to the jurisdiction of the
  department.
               (2)  "Toll project entity" means an entity authorized
  by law to acquire, design, construct, finance, operate, and
  maintain a toll project, including:
                     (A)  the department under Chapter [227 or] 228;
                     (B)  a regional tollway authority under Chapter
  366;
                     (C)  a regional mobility authority under Chapter
  370; or
                     (D)  a county under Chapter 284.
  SUBCHAPTER B. TOLL PROJECT OPERATION
         Sec. 372.051 [371.051].  USE OF MOTOR VEHICLE REGISTRATION
  OR LICENSE PLATE INFORMATION. (a) A toll project entity may not
  use motor vehicle registration or other information derived from a
  license plate on a vehicle using a toll project, including
  information obtained by the use of automated enforcement technology
  described by Section 228.058, for purposes other than those related
  to:
               (1)  toll collection and toll collection enforcement;
  and
               (2)  law enforcement purposes on request by a law
  enforcement agency [, subject to Section 228.058(d)].
         (b)  If a toll project entity enters into an agreement with
  an entity in another state that involves the exchange of motor
  vehicle registration or license plate information for toll
  collection or toll collection enforcement purposes, the agreement
  must provide that the information may not be used for purposes other
  than those described in Subsection (a).
         Sec. 372.052 [371.001]. VEHICLES USED BY NONPROFIT DISASTER
  RELIEF ORGANIZATIONS. [(a) In this section:
               [(1)     "Toll project" means a toll project described by
  Section 201.001(b), regardless of whether the toll project is:
                     [(A)  a part of the state highway system; or
                     [(B)     subject to the jurisdiction of the
  department.
               [(2)     "Toll project entity" means an entity authorized
  by law to acquire, design, construct, finance, operate, and
  maintain a toll project, including:
                     [(A)  the department under Chapter 227 or 228;
                     [(B)     a regional tollway authority under Chapter
  366;
                     [(C)     a regional mobility authority under Chapter
  370; or
                     [(D)  a county under Chapter 284.
         [(b)]  A toll project entity may not require a vehicle
  registered under Section 502.203 to pay a toll for the use of a toll
  project.
         SECTION 19.11.  Section 371.001(2), Transportation Code, as
  added by Chapter 264 (S.B. 792), Acts of the 80th Legislature,
  Regular Session, 2007, is amended to read as follows:
               (2)  "Toll project entity" means an entity authorized
  by law to acquire, design, construct, operate, and maintain a toll
  project, including:
                     (A)  the department[, including under Chapter
  227];
                     (B)  a regional tollway authority under Chapter
  366;
                     (C)  a regional mobility authority under Chapter
  370; or
                     (D)  a county under Chapter 284.
         SECTION 19.12.  The following provisions of the
  Transportation Code are repealed:
               (1)  Section 201.618(e);
               (2)  Chapter 227;
               (3)  Section 284.0032;
               (4)  Section 366.305;
               (5)  Section 370.316; and
               (6)  Section 545.3531.
  ARTICLE 20. URBAN TRANSPORTATION AUTHORITIES
         SECTION 20.01.  Chapter 451, Transportation Code, is amended
  by adding Subchapter R to read as follows:
  SUBCHAPTER R. URBAN TRANSPORTATION AUTHORITIES
         Sec. 451.901.  DEFINITIONS. (a)  In this subchapter:
               (1)  "Advanced transportation district" means a
  district created or operating under Subchapter O.
               (2)  "Authority" means a rapid transit authority
  created or operating under this chapter.
               (3)  "Board" means the governing body of an urban
  transportation authority, except as otherwise provided by this
  subchapter.
               (4)  "Comprehensive advanced transportation" means the
  design, construction, extension, expansion, improvement,
  reconstruction, alteration, acquisition, financing, and
  maintenance of mass transit, light rail, commuter rail, intercity
  municipal rail, freight rail, fixed guideways, traffic management
  systems, bus ways, bus lanes, technologically advanced bus transit
  vehicles and systems, bus rapid transit vehicles and systems,
  passenger amenities, transit centers, stations, parking facilities
  and payment mechanisms, sidewalks, bicycle lanes, electronic
  transit-related information, fare collection and operating
  systems, high occupancy vehicle lanes, bridges, traffic signal
  prioritization and coordination systems, monitoring systems,
  tracks and rail line, switching and signaling equipment, operating
  equipment, depots, locomotives, rolling stock, maintenance
  facilities, other real and personal property associated with a rail
  operation and transit-oriented development, and other
  comprehensive advanced transportation facilities, equipment,
  operations, comprehensive transportation systems, and services,
  including planning, feasibility studies, operations, and
  professional and other services in connection with those
  facilities, equipment, operations, comprehensive transportation
  systems, and services.
               (5)  "Comprehensive mobility enhancement" means the
  design, construction, extension, expansion, improvement,
  reconstruction, alteration, acquisition, financing, and
  maintenance of:
                     (A)  streets, roads, highways, high occupancy
  vehicle lanes, toll lanes, turnpike projects, pedestrian or bicycle
  facilities, bridges, grade separations, parking facilities and
  payment mechanisms, and infrastructure designed to improve
  mobility;
                     (B)  traffic signal prioritization and street
  lighting;
                     (C)  monitoring systems;
                     (D)  other mobility enhancement facilities,
  equipment, systems, and services, including drainage improvements
  or drainage-related measures reasonable and necessary for the
  effective use of the transportation facility being constructed or
  maintained;
                     (E)  an intermodal hub, air quality improvement
  initiative, and public utility facility; and
                     (F)  a conveyance or acceptance of the exclusive
  rights to develop tolled infrastructure or other mobility-related
  assets, including concession fees.
               (6)  "Comprehensive transportation system" means a
  transportation project or a combination of transportation projects
  designated as a system by the board of an urban transportation
  authority.
               (7)  "Construction costs" means the costs of
  acquisition, construction, reconstruction, improvement,
  extension, or expansion of a transportation project under this
  subchapter. The term includes a construction cost as defined by
  Chapter 370.
               (8)  "Costs" means finance costs and construction
  costs.
               (9)  "Debt" means a bond, certificate, long-term or
  short-term note, commercial paper, loan, certificate of
  participation, agreement with a local government, or any other
  obligation with a variable or fixed interest rate authorized by
  this chapter or the constitution or another law of this state. The
  term includes a credit agreement issued under Chapter 1371,
  Government Code.
               (10)  "Finance costs" means any fee or expense
  associated with the financing of a transportation project,
  including any debt service requirement, capitalized interest,
  reserve fund requirement, professional or administrative cost, or
  other cost incurred by or relating to the issuance of debt under
  this subchapter relating to the design, construction, extension,
  expansion, improvement, reconstruction, alteration, financing,
  acquisition, or maintenance of a transportation project.
               (11)  "Regional mobility authority" means a regional
  mobility authority created or operating under Chapter 370.
               (12)  "Revenue" means revenue available to an urban
  transportation authority under this subchapter, including any
  source of taxes or revenue available under Chapter 370 or this
  chapter, including Subchapter O.
               (13)  "Transportation project" means a comprehensive
  advanced transportation project or a comprehensive mobility
  enhancement project.
               (14)  "Urban transportation authority" means an entity
  that has the powers of an authority, a regional mobility authority,
  and an advanced transportation district and is created under this
  subchapter.
         (b)  A word or phrase that is not defined in this subchapter
  but is defined in Subchapter O has the meaning in this subchapter
  that is assigned by that subchapter.
         (c)  A word or phrase that is not defined in this subchapter
  but is defined in Chapter 370 has the meaning in this subchapter
  that is assigned by that chapter.
         Sec. 451.902.  LIBERAL CONSTRUCTION. This subchapter shall
  be liberally construed to carry out its purposes. A provision of
  this subchapter that conflicts with Subchapter A or O or with
  Chapter 370 shall be construed to grant the broadest power.
         Sec. 451.903.  CREATION OF URBAN TRANSPORTATION AUTHORITY
  AUTHORIZED. (a)  The governing body of an authority in which the
  principal municipality has a population of more than 700,000 and in
  the territory of which both an advanced transportation district and
  a regional mobility authority exist may approve and submit a
  petition to the governing bodies of the advanced transportation
  district and the regional mobility authority that seeks consent to
  the creation of an urban transportation authority under this
  subchapter.
         (b)  Creation of an urban transportation authority under
  this subchapter may occur if:
               (1)  the governing body of the principal municipality
  in the authority and the commissioners court of each county in which
  the authority is located and in which a sales and use tax is
  collected under this chapter consent to the creation of the urban
  transportation authority;
               (2)  the governing body of the regional mobility
  authority consents to the creation of the urban transportation
  authority;
               (3)  the commissioners court of each county in which
  the regional mobility authority is located consents to the creation
  of the urban transportation authority;
               (4)  the governing body of the advanced transportation
  district consents to the creation of the urban transportation
  authority; and
               (5)  the commissioners court of each county and the
  governing body of the principal municipality in which the advanced
  transportation district is located consent to the creation of the
  urban transportation authority.
         (c)  The petition of the authority and the consents described
  in Subsection (b) must:
               (1)  approve the transfer of the assets, liabilities,
  rights, and obligations of each entity to the urban transportation
  authority; or
               (2)  make adequate provision therefor by the applicable
  entity.
         Sec. 451.904.  EFFECT OF CREATION OF URBAN TRANSPORTATION
  AUTHORITY. (a)  An urban transportation authority is created only
  after the occurrence of the actions required by Section 451.903. On
  the first day of the calendar month after the month in which the
  final action required by that section is taken, an urban
  transportation authority is considered to have been created. The
  urban transportation authority has the rights, powers, duties, and
  privileges granted to an authority under this chapter, to an urban
  transportation authority under this subchapter, to an advanced
  transportation district under Subchapter O, and to a regional
  mobility authority under Chapter 370, including the right to plan
  and develop transportation projects in any county in which the
  urban transportation authority is located.
         (b)  On the date the urban transportation authority is
  considered to have been created, the urban transportation authority
  becomes the successor entity to the authority, the advanced
  transportation district, and the regional mobility authority. On
  that date the authority, the advanced transportation district, and
  the regional mobility authority cease to exist.
         (c)  The urban transportation authority succeeds to and is
  obligated for all assets, liabilities, rights, and obligations not
  otherwise provided for of the authority, the advanced
  transportation district, and the regional mobility authority, on
  terms and conditions that, upon succession, are no less beneficial
  to employees than those extant immediately before the creation of
  the urban transportation authority, including continuation of all
  rights, privileges, and benefits such as pension rights and
  benefits, wages, and working conditions, afforded to employees
  under an existing agreement.
         Sec. 451.905.  POWERS. (a) An urban transportation
  authority has the powers necessary or convenient to implement this
  subchapter or to effect a purpose of this subchapter.
         (b)  An urban transportation authority through its board may
  plan, study, evaluate, design, finance, acquire, construct,
  maintain, repair, and operate a transportation project,
  individually or as one or more comprehensive transportation
  systems.
         (c)  An urban transportation authority has:
               (1)  all of the rights, powers, duties, and privileges
  granted to an authority by this chapter;
               (2)  all of the rights, powers, duties, and privileges
  granted to a regional mobility authority by Chapter 370; and
               (3)  all of the rights, powers, duties, and privileges
  granted to an advanced transportation district by Subchapter O.
         (d)  A right, power, duty, or privilege of an urban
  transportation authority described in Subsection (c) may be
  exercised independently or in combination to effect the purposes of
  this subchapter. Except as otherwise provided by this subchapter,
  in the event of a conflict, the most liberal provision applies.
         (e)  In the manner and to the extent that an authority is
  authorized by this chapter, an urban transportation authority may
  develop and operate a transit system, set fares and other charges,
  and develop stations or terminal complexes for the use of the
  transit system and related right-of-way.
         (f)  An urban transportation authority has any right, power,
  duty, or privilege granted by Chapter 370 to a regional mobility
  authority that relates to mass transit or a transit system and that
  is not in conflict with this subchapter.
         (g)  An urban transportation authority may impose any kind of
  tax or fee other than an ad valorem tax, including a sales and use
  tax. The applicable provisions of this chapter, including
  Subchapter O, and Chapter 370 apply to the imposition of a fee or
  tax by the urban transportation authority. If the legislature
  enacts provisions for local option transportation financing
  through a transportation finance authority or a centralized
  transportation finance entity, an urban transportation authority
  may serve as such an entity.
         (h)  An urban transportation authority may develop and
  operate a turnpike project. The turnpike project must be developed
  and operated under the provisions of Chapter 370, including any
  provision relating to the setting of toll rates.
         (i)  Unless otherwise provided by this subchapter, the board
  shall allocate the proceeds of the advanced transportation district
  sales and use tax in compliance with Subchapter O.
         (j)  Unless otherwise provided by this subchapter, an
  election relating to the sales and use tax or the boundaries of an
  advanced transportation district is governed by the provisions of
  Subchapter O relating to such an election of an advanced
  transportation district.
         (k)  An urban transportation authority may create a
  transportation corporation or local government corporation under
  Chapter 431.
         (l)  An urban transportation authority is a toll project
  entity and a local toll project entity to the same extent as a
  regional mobility authority under the provisions of this code.
         (m)  In its selection and prioritization of transportation
  projects, the board shall consider the geographic location of other
  transportation projects funded by this state or the United States
  so as to foster geographic equity in the planning and development of
  the projects.
         Sec. 451.906.  NATURE OF URBAN TRANSPORTATION AUTHORITY.
  (a)  An urban transportation authority:
               (1)  is a body politic and corporate and a political
  subdivision of this state;
               (2)  has perpetual succession; and
               (3)  exercises public and essential governmental
  functions.
         (b)  The exercise of a right, power, or privilege granted by
  this subchapter is for a public purpose and is a matter of public
  necessity and is, in all respects, for the benefit of the people of
  the territory in which an urban transportation authority operates
  and of the people of this state, for the increase of their commerce
  and prosperity, and for the improvement of their health, living
  conditions, and public safety.
         (c)  An urban transportation authority is a governmental
  unit under Chapter 101, Civil Practice and Remedies Code. The
  operations of the urban transportation authority are not
  proprietary functions for any purpose.
         (d)  An urban transportation authority is:
               (1)  a public entity under Section 222.1045; and
               (2)  a governmental agency under Subchapter A, Chapter
  271, Local Government Code.
         (e)  The property, revenue, and income of an urban
  transportation authority are exempt from state and local taxes.
         Sec. 451.907.  GOVERNANCE OF URBAN TRANSPORTATION
  AUTHORITY; INITIAL BOARD OF DIRECTORS. (a)  An urban
  transportation authority is governed by a board of directors. The
  board consists of:
               (1)  five members appointed by the governing body of
  the principal municipality, with one member designated to represent
  the interests of the transportation disadvantaged;
               (2)  five members appointed by the commissioners court
  of the county in which the urban transportation authority is
  located, or if the urban transportation authority is located in
  more than one county, jointly appointed by the commissioners courts
  of those counties;
               (3)  two members appointed by a panel composed of the
  mayors of the municipalities, other than the principal
  municipality, that are inside the boundaries of the authority and
  contribute sales and use tax revenue to the authority; and
               (4)  one member appointed by the governor.
         (a-1)  The members appointed under Subsection (a) shall
  select by majority vote one member to serve as presiding officer of
  the board.
         (b)  On the creation of the urban transportation authority,
  the initial board of the urban transportation authority shall be
  appointed from among the memberships of the governing body of the
  authority, the governing body of the advanced transportation
  district, and the governing body of the regional mobility
  authority, as extant immediately before the urban transportation
  authority was created.
         (c)  The board is responsible for the management, operation,
  and control of the urban transportation authority and the property
  of the urban transportation authority.
         (d)  A provision of this chapter that is applicable to the
  governing body of an authority and relates to vacancies, term
  limitations, residency requirements, compensation, surety bonds,
  nepotism, financial disclosure, indemnification, insurance, or
  removal applies to the board.
         (e)  Board meetings and actions are governed by the
  provisions of this chapter that are applicable to the governing
  body of an authority. Those meetings and actions are not governed
  by Chapter 370.
         (f)  To be eligible to serve as a director, an individual:
               (1)  may be a representative of an entity that is also
  represented on a metropolitan planning organization in the region
  where the principal municipality is located; and
               (2)  may not be:
                     (A)  an elected official;
                     (B)  an officer or employee of the department;
                     (C)  an employee of a county or a municipality,
  including the principal municipality, that contributes sales and
  use tax revenue to the urban transportation authority; or
                     (D)  a person who owns an interest in real
  property that will be acquired for a transportation project, if it
  is known at the time of the person's proposed appointment that the
  property will be acquired for the transportation project.
         Sec. 451.908.  PUBLIC ACCESS. An urban transportation
  authority shall:
               (1)  make and implement policies that provide the
  public with a reasonable opportunity to appear before the board to
  speak on any issue under the jurisdiction of the urban
  transportation authority; and
               (2)  prepare and maintain a written plan that describes
  how an individual who does not speak English or who has a physical,
  mental, or developmental disability may be provided reasonable
  access to the urban transportation authority's programs.
         Sec. 451.909.  STRATEGIC PLANS AND ANNUAL REPORTS. (a)  An
  urban transportation authority shall develop a strategic plan for
  its operations. Before December 31 of each even-numbered year, the
  urban transportation authority shall issue a plan that covers the
  succeeding five fiscal years of the urban transportation authority,
  beginning with the next odd-numbered fiscal year.
         (b)  Not later than March 31 of each year, an urban
  transportation authority shall file with each county in which the
  urban transportation authority is located, the principal
  municipality, and the panel composed of the mayors of the
  municipalities in the urban transportation authority that
  contribute sales and use tax revenue to the authority, a written
  report on the urban transportation authority's activities that
  includes a description of anticipated issuances of debt during the
  next fiscal year, a description of the financial condition of the
  urban transportation authority, schedules for the development of
  approved projects, and the status of the urban transportation
  authority's performance under the most recent strategic plan.
         (c)  Notwithstanding Subsection (b), a failure to identify a
  debt issuance or a change in a project development schedule in a
  written report does not prevent the issuance of the debt or the
  change in the project development schedule, including the
  commencement of the operation of a project.
         Sec. 451.910.  ESTABLISHMENT OF COMPREHENSIVE
  TRANSPORTATION SYSTEM. (a)  If the board determines that the
  mobility needs of the county or counties in which the urban
  transportation authority operates and of the surrounding region
  could be most efficiently and economically met by jointly operating
  two or more transportation projects as one operational and
  financial enterprise, the board may create one or more
  comprehensive transportation systems composed of those
  transportation projects.
         (b)  The board may:
               (1)  create more than one comprehensive transportation
  system; and
               (2)  combine two or more comprehensive transportation
  systems into a single comprehensive transportation system.
         (c)  An urban transportation authority may finance, acquire,
  construct, cross-collateralize, and operate a comprehensive
  transportation system if the board determines that:
               (1)  the transportation projects could most
  efficiently and economically be acquired or constructed as part of
  the comprehensive transportation system; and
               (2)  the transportation projects will benefit the
  comprehensive transportation system.
         Sec. 451.911.  ISSUANCE OF DEBT. (a)  An urban
  transportation authority, or an entity created by the urban
  transportation authority for the purposes of issuing debt, by
  resolution of the board or the governing body of the entity, as
  applicable, may authorize the issuance of debt payable solely from
  revenue.
         (b)  Debt, any portion of which is payable from taxes, may
  not be issued by an urban transportation authority unless the
  issuance is authorized by a majority of the votes cast at an
  election ordered and held for that purpose.
         (c)  Debt issued by an urban transportation authority is
  fully negotiable. An urban transportation authority may make the
  debt redeemable before maturity at the price and subject to the
  terms and conditions provided in the proceedings that authorized
  the issuance or in a related legal document.
         (d)  Debt issued by an urban transportation authority under
  this subchapter may be sold at a public or private sale as
  determined by the board to be most advantageous and may have a
  maturity of not longer than 50 years.
         (e)  Costs attributable to a transportation project that
  were incurred before the issuance of debt to finance the
  transportation project may be reimbursed from the proceeds of debt
  that is subsequently issued.
         Sec. 451.912.  TRANSPORTATION PROJECT FINANCING. (a)  An
  urban transportation authority may exercise the powers of a
  regional mobility authority, an authority, and an advanced
  transportation district and may issue debt or enter into other
  agreements or financial arrangements to pay all or part of the costs
  of a transportation project or to refund any debt previously issued
  for a transportation project.
         (b)  The powers described in Subsection (a) are cumulative
  and may be exercised by an urban transportation authority
  independently or in combination to develop, finance, operate, and
  pay the costs of a transportation project. Subject to other
  provisions of this subchapter, the urban transportation authority
  may pledge any revenue available to the urban transportation
  authority under this subchapter, separately or in combination, for
  the payment of a debt, agreement, or financial arrangement
  described by Subsection (a).
         (c)  As authorized by Chapter 370 in connection with a
  regional mobility authority, the department may provide for or
  contribute to the payment of the costs of a financial or engineering
  and traffic feasibility study for a transportation project.
         Sec. 451.913.  SALES AND USE TAX. (a)  When an authority
  that collects a sales and use tax becomes part of an urban
  transportation authority:
               (1)  the sales and use tax remains subject to the
  provisions of this chapter that relate to the sales and use tax of
  an authority; and
               (2)  any restriction, covenant, obligation, or pledge
  attributed to that sales and use tax remains in effect.
         (b)  When an advanced transportation district that collects
  a sales and use tax becomes part of an urban transportation
  authority:
               (1)  the sales and use tax remains subject to the
  provisions of Subchapter O that relate to the sales and use tax of
  an advanced transportation district; and
               (2)  any restriction, covenant, obligation,
  allocation, or pledge attributed to that sales and use tax remains
  in effect until the voters elect to increase, decrease, or
  otherwise alter the terms of the sales and use tax.
         (c)  The allocation of the proceeds of the sales and use tax
  adopted at the initial election of an advanced transportation
  district may not be altered unless a proposition for the
  reallocation is approved by a majority of the votes cast at an
  election ordered and held for that purpose under this subchapter.
         (d)  An urban transportation authority may order a
  subsequent advanced transportation district sales and use tax
  election to reallocate the proceeds of the tax or to increase or
  decrease the rate of the tax collected by the urban transportation
  authority. An election ordered under this section must be held for
  one or more transportation projects; the combined rate of all sales
  and use taxes imposed by the urban transportation authority and all
  other political subdivisions of this state may not exceed the
  statutory sales and use tax cap in any location in the urban
  transportation authority; and the proceeds of the sales and use tax
  under a subsequent election may be pledged only for:
               (1)  transportation project purposes as determined by
  the board, including debt service requirements, capitalized
  interest, reserve fund requirements, credit agreements,
  administrative costs, or other debt-related costs incurred by or
  relating to the issuance of obligations by the urban transportation
  authority relating to the purchase, design, construction,
  extension, expansion, improvement, reconstruction, alteration,
  financing, and maintenance of an advanced transportation facility,
  equipment, operations, a comprehensive transportation system, and
  services, including feasibility studies, operations, and
  professional or other services in connection with the facility,
  equipment, operations, system, or services;
               (2)  transportation project purposes in the territory
  of the urban transportation authority as determined by the
  governing bodies of each participating unit in proportion to the
  amount of sales and use tax proceeds that were collected in that
  participating unit; or
               (3)  as a local match for, or the local share of, a
  state or federal grant for transportation project purposes in the
  territory of the urban transportation authority or in connection
  with the transfer of money by the department or another entity of
  this state or the United States under an agreement with a county or
  municipality or a local government corporation created by a county
  or municipality under Chapter 431, for transportation project
  purposes in the territory of the urban transportation authority.
         (e)  At an election under this section, the ballot shall be
  prepared to permit voting for or against the proposition: "The
  imposition of a sales and use tax for comprehensive advanced
  transportation and comprehensive mobility enhancement in the (name
  of urban transportation authority), at the rate to be set by the
  governing body of the urban transportation authority."
         (f)  After a favorable subsequent election held under this
  subchapter, an allocation specified by Subchapter O ceases to be
  binding.
         Sec. 451.914.  USE OF FARE REVENUE. (a)  All fare revenue
  generated by the mass transit operations of the urban
  transportation authority, other than fare revenue generated by a
  rail operation, must be dedicated exclusively to the support of
  mass transit operations.
         (b)  Fare revenue generated by a rail operation of the urban
  transportation authority may be used for any comprehensive advanced
  transportation or comprehensive mobility enhancement purpose.
         Sec. 451.915.  POWERS AND PROCEDURES OF URBAN TRANSPORTATION
  AUTHORITY IN ACQUIRING PROPERTY. An urban transportation authority
  has the same powers and may use the same procedures as a regional
  mobility authority operating under Chapter 370 in acquiring
  property.
         Sec. 451.916.  PUBLIC UTILITY FACILITIES. An urban
  transportation authority has the same powers and may use the same
  procedures as a regional mobility authority operating under Chapter
  370 with regard to public utility facilities.
         Sec. 451.917.  TOLL COLLECTION AND VIOLATIONS. An urban
  transportation authority has the same powers and may use the same
  procedures as a regional mobility authority operating under Chapter
  370 with regard to toll collections, transponders, enforcement,
  violations, and penalties.
         Sec. 451.918.  PROJECT DELIVERY. An urban transportation
  authority may procure, develop, finance, design, construct,
  maintain, or operate a transportation project using the rights,
  powers, duties, and privileges that are granted by Chapter 223, by
  Chapter 370 to a regional mobility authority, or by Subchapter H,
  Chapter 271, Local Government Code, including a right, power, duty,
  or privilege associated with:
               (1)  a construction manager agent;
               (2)  a construction manager-at-risk;
               (3)  use of design build;
               (4)  a pass-through agent; or
               (5)  a comprehensive development agreement.
         Sec. 451.919.  MUNICIPAL TRANSPORTATION REINVESTMENT ZONES.
  A municipality located in the territory served by an urban
  transportation authority may:
               (1)  designate a municipal transportation reinvestment
  zone under Section 222.106 to promote a transportation project
  under this subchapter; and
               (2)  use money deposited to the tax increment account
  for the reinvestment zone to pay the urban transportation authority
  for a portion of the costs of the transportation project.
  ARTICLE 21. SALES AND LEASES OF MOTOR VEHICLES
         SECTION 21.01.  Section 2301.476, Occupations Code, is
  amended by adding Subsection (h-1) to read as follows:
         (h-1)  A person who on January 18, 2002, held both a
  converter's license to convert buses with a gross vehicle weight
  rating of 40,000 pounds or more and a franchised dealer's license to
  sell buses issued under this chapter may:
               (1)  regain and continue to hold both licenses; and
               (2)  operate as both a converter and franchised dealer
  of bus conversions with a gross vehicle weight rating of 40,000
  pounds or more but of no other type of vehicle.
  ARTICLE 22. HIGHWAY AND OVERPASS DESIGNATIONS
         SECTION 22.01.  Subchapter B, Chapter 225, Transportation
  Code, is amended by adding Section 225.081 to read as follows:
         Sec. 225.081.  BUDDY WEST MEMORIAL OVERPASS. (a) The
  structure on Loop 338 that passes over Interstate Highway 20 in
  Ector County is designated as the Buddy West Memorial Overpass.
         (b)  The department shall:
               (1)  design and construct markers indicating the
  highway number, the designation as the Buddy West Memorial
  Overpass, and any other appropriate information; and
               (2)  erect a marker at each end of the structure and at
  appropriate intermediate sites along the structure.
         (c)  Section 225.021(c) does not apply to this section.
  ARTICLE 23. AVIATION FACILITIES DEVELOPMENT AND FINANCIAL
  ASSISTANCE
         SECTION 23.01. Section 21.101, Transportation Code, is
  amended by amending Subsection (a) and adding Subsection (c) to
  read as follows:
         (a)  The department may loan or grant money to a state agency
  with a governing board authorized to operate an airport, [or] to a
  governmental entity in this state, or to an owner of an eligible
  airport to establish, construct, reconstruct, enlarge, or repair an
  airport, airstrip, or air navigational facility if:
               (1)  the money has been appropriated to the department
  for that purpose; and
               (2)  providing the money will:
                     (A)  best serve the public interest; and
                     (B)  best discharge the governmental aeronautics
  function of the state or its political subdivisions.
         (c)  In this section, "eligible airport" means an airport
  eligible to receive grant funds under the airport improvement
  program established by 49 U.S.C. Section 47101 et seq.
         SECTION 23.02. Section 21.105, Transportation Code, is
  amended by amending Subsection (b) and adding Subsection (c) to
  read as follows:
         (b)  Before approving a loan or grant to a governmental
  entity, the commission shall require that:
               (1)  the airport or facility remain in the control of
  each political subdivision involved for at least 20 years;
               (2)  the political subdivision disclose the source of
  all funds for the project and the political subdivision's ability
  to finance and operate the project;
               (3)  at least 10 percent of the total project cost be
  provided by sources other than the state; and
               (4)  the project be adequately planned.
         (c)  Before approving a loan or grant to an owner of an
  eligible airport as defined by Section 21.101, the commission shall
  require that:
               (1)  the airport or facility remain an eligible airport
  for at least 20 years;
               (2)  the owner demonstrate the ability to finance and
  operate the project; and
               (3)  the project be adequately planned.
         SECTION 23.03. Section 21.112, Transportation Code, is
  amended to read as follows:
         Sec. 21.112.  EXPENDITURE OF AIR FACILITY CONSTRUCTION MONEY
  [BY STATE GOVERNMENTAL ENTITIES].  A governmental entity or
  eligible airport, as defined by Section 21.101, that receives money
  from the department to establish, construct, reconstruct, enlarge,
  or repair an airport, airstrip, or air navigational facility shall
  spend the money for those purposes and in conformity with
  commission rules.
  ARTICLE 24. COUNTY ROADS AND BRIDGES; MUNICIPAL STREETS
         SECTION 24.01.  Section 251.054, Transportation Code, is
  repealed.
         SECTION 24.02.  Subchapter Z, Chapter 311, Transportation
  Code, is amended by adding Section 311.905 to read as follows:
         Sec. 311.905.  NOTICE OF TRANSPORTATION USER'S FEE BY
  MUNICIPALITY.  (a) A municipality that imposes a fee on the user of
  a benefited property equal to the prorated annual cost of the
  transportation system owned by the municipality that can reasonably
  be attributed to the benefited property must provide notice to the
  department and the user of the fee.
         (b)  The notice to the department shall be given to the
  executive director by any commercially acceptable form of business
  communication. The notice to the user required under Subsection
  (a) is adequate if the fee amount is stated on monthly billing
  statements to the user for metered utility service provided by the
  municipality to the user.
  ARTICLE 25.  TRANSPORTATION REINVESTMENT ZONES
         SECTION 25.01.  Section 222.105, Transportation Code, is
  amended to read as follows:
         Sec. 222.105.  PURPOSES. The purposes of Sections 222.106
  and 222.107 are to:
               (1)  promote public safety;
               (2)  facilitate the improvement, development, or
  redevelopment of property;
               (3)  facilitate the movement of traffic; [and]
               (4)  enhance a local entity's ability to sponsor a
  transportation project authorized under Section 222.104; and
               (5)  enhance a municipality's ability to provide for
  freight or passenger rail facilities or systems.
         SECTION 25.02.  Section 222.106, Transportation Code, is
  amended by amending Subsections (b), (c), (g), (h), (i), (j), (k),
  and (l) and adding Subsections (i-1), (i-2), (l-1), and (m) to read
  as follows:
         (b)  This section applies only to a municipality in which a
  transportation project is to be developed or the governing body of
  which intends to acquire, construct, improve, or operate a freight
  or passenger rail facility or system, including commuter rail,
  intercity rail, high-speed rail, and tri-track [enter into an
  agreement with the department] under Section 222.104.
         (c)  If the governing body determines an area to be
  unproductive and underdeveloped and that action under this section
  will further the purposes stated in Section 222.105, the governing
  body of the municipality by ordinance may designate a contiguous
  geographic area in the jurisdiction of the municipality to be a
  transportation reinvestment zone to promote:
               (1)  a transportation project; or
               (2)  the acquisition, construction, improvement, or
  operation of a freight or passenger rail facility or system by the
  municipality [described by Section 222.104 that cultivates
  development or redevelopment of the area].
         (g)  The ordinance designating an area as a transportation
  reinvestment zone must:
               (1)  describe the boundaries of the zone with
  sufficient definiteness to identify with ordinary and reasonable
  certainty the territory included in the zone;
               (2)  provide that the zone takes effect immediately on
  passage of the ordinance;
               (3)  assign a name to the zone for identification, with
  the first zone designated by a municipality designated as
  "Transportation Reinvestment Zone Number One, (City or Town, as
  applicable) of (name of municipality)," and subsequently
  designated zones assigned names in the same form, numbered
  consecutively in the order of their designation;
               (4)  designate the base year for purposes of
  establishing the tax increment base of the municipality;
               (5)  establish an ad valorem tax increment account for
  the zone; [and]
               (6)  [(5)]  contain findings that promotion of the
  transportation project will cultivate the improvement,
  development, or redevelopment of the zone; and
               (7)  for a zone intended to promote the acquisition,
  construction, improvement, or operation of a freight or rail
  facility or system, provide for a date for termination of the zone.
         (h)  From taxes collected on property in a zone, the
  municipality shall pay into the tax increment account for the zone
  [an amount equal to] the tax increment produced by the
  municipality, less any amount allocated under previous agreements,
  including agreements under Chapter 380, Local Government Code, or
  Chapter 311, Tax Code.
         (i)  All or the portion specified by the municipality of the
  money deposited to a tax increment account must be used to fund the
  transportation project for which the zone was designated or, as
  applicable, the acquisition, construction, improvement, or
  operation of a freight or passenger rail facility or system as well
  as aesthetic improvements within the zone. Any remaining money
  deposited to the tax increment account may be used for other
  purposes as determined by the municipality [Money deposited to a
  tax increment account must be used to fund projects authorized
  under Section 222.104, including the repayment of amounts owed
  under an agreement entered into under that section].
         (i-1)  The governing body of a municipality may contract with
  a public or private entity to develop, redevelop, or improve a
  transportation project in a transportation reinvestment zone and
  may pledge and assign all or a specified amount of money in the tax
  increment account to that entity. After a pledge or assignment is
  made, if the entity that received the pledge or assignment has
  itself pledged or assigned that amount to secure bonds or other
  obligations issued to obtain funding for the transportation
  project, the governing body of the municipality may not rescind its
  pledge or assignment until the bonds or other obligations secured
  by the pledge or assignment have been paid or discharged.
         (i-2)  To accommodate changes in the limits of the project
  for which a reinvestment zone was designated, the boundaries of a
  zone may be amended at any time, except that property may not be
  removed or excluded from a designated zone if any part of the tax
  increment account has been assigned or pledged directly by the
  municipality or through another entity to secure bonds or other
  obligations issued to obtain funding of the project, and property
  may not be added to a designated zone unless the governing body of
  the municipality complies with Subsections (e) and (g).
         (j)  Except as provided by Subsections (i-1), [Subsection]
  (k), and (l-1), a transportation reinvestment zone terminates on
  December 31 of the year in which the municipality completes
  [complies with] a contractual requirement, if any, that included
  the pledge or assignment of all or a portion of money deposited to a
  tax increment account or the repayment of money owed under an [the]
  agreement for development, redevelopment, or improvement of the
  project for [under Section 222.104 in connection with] which the
  zone was designated.
         (k)  A transportation reinvestment zone terminates on
  December 31 of the 10th year after the year the zone was designated,
  if before that date the municipality has not entered into a contract
  described in Subsection (i-1) or otherwise not used the zone for the
  purpose for which it was designated.
         (l)  Any surplus remaining in a tax increment account on
  termination of a zone may be used for other purposes as determined
  by [transportation projects of] the municipality [in or outside of
  the zone].
         (l-1)  A transportation reinvestment zone designated to
  promote the acquisition, construction, improvement, or operation
  of a freight or passenger rail facility or system terminates on the
  earlier of:
               (1)  the termination date specified in the ordinance
  designating the zone or an earlier or later termination date
  specified by an ordinance adopted subsequent to the ordinance
  designating the zone; or
               (2)  the date on which all costs incurred in the
  acquisition, construction, improvement, or operation of the
  freight or passenger rail facility or system, tax increment bonds
  and interest on those bonds, and other obligations have been paid in
  full.
         (m)  In this section, "rail facility" has the meaning
  assigned by Section 91.001.
         SECTION 25.03.  The heading to Section 222.107,
  Transportation Code, is amended to read as follows:
         Sec. 222.107.  COUNTY TRANSPORTATION REINVESTMENT ZONES[;
  TAX ABATEMENTS; ROAD UTILITY DISTRICTS].
         SECTION 25.04.  Section 222.107, Transportation Code, is
  amended by amending Subsections (b), (c), (e), (f), (h), (i), (k),
  and (l) and adding Subsections (h-1) and (k-1) to read as follows:
         (b)  This section applies only to a county in which a
  transportation project is to be developed [the commissioners court
  of which intends to enter into a pass-through toll agreement with
  the department] under Section 222.104.
         (c)  The commissioners court of the county, after
  determining that an area is unproductive and underdeveloped and
  that action under this section would further the purposes described
  by Section 222.105, by order or resolution may designate a
  contiguous geographic area in the jurisdiction of the county to be a
  transportation reinvestment zone to promote a transportation
  project [described by Section 222.104 that cultivates development
  or redevelopment of the area] and for the purpose of abating ad
  valorem taxes or granting other relief from taxes imposed by the
  county on real property located in the zone.
         (e)  Not later than the 30th day before the date the
  commissioners court proposes to designate an area as a
  transportation reinvestment zone under this section, the
  commissioners court must hold a public hearing on the creation of
  the zone, its benefits to the county and to property in the proposed
  zone, and the abatement of ad valorem taxes or the grant of other
  relief from ad valorem taxes imposed by the county on real property
  located in the zone.  At the hearing an interested person may speak
  for or against the designation of the zone, its boundaries, or the
  abatement of or the relief from county taxes on real property in the
  zone. Not later than the seventh day before the date of the
  hearing, notice of the hearing and the intent to create a zone must
  be published in a newspaper having general circulation in the
  county.
         (f)  The order or resolution designating an area as a
  transportation reinvestment zone must:
               (1)  describe the boundaries of the zone with
  sufficient definiteness to identify with ordinary and reasonable
  certainty the territory included in the zone;
               (2)  provide that the zone takes effect immediately on
  adoption of the order or resolution; [and]
               (3)  assign a name to the zone for identification, with
  the first zone designated by a county designated as "Transportation
  Reinvestment Zone Number One, County of (name of county)," and
  subsequently designated zones assigned names in the same form
  numbered consecutively in the order of their designation; and
               (4)  designate the base year for purposes of
  establishing the tax increment base of the county.
         (h)  The commissioners court by order or resolution may enter
  into an agreement with the owner of any real property located in the
  transportation reinvestment zone to abate all or a portion of the ad
  valorem taxes or to grant other relief from the taxes imposed by the
  county on the owner's property in an amount not to exceed the amount
  calculated under Subsection (a)(1) for that year.  All abatements
  or other relief granted by the commissioners court in a
  transportation reinvestment zone must be equal in rate.  In the
  alternative, the commissioners court by order or resolution may
  elect to abate a portion of the ad valorem taxes or otherwise grant
  relief from the taxes imposed by the county on all real property
  located in the zone.  In any ad valorem tax year, the total amount
  of the taxes abated or the total amount of relief granted under this
  section may not exceed the amount calculated under Subsection
  (a)(1) for that year, less any amounts allocated under previous
  agreements, including agreements under Chapter 381, Local
  Government Code, or Chapter 312, Tax Code.
         (h-1)  To further the development of the transportation
  project for which the transportation reinvestment zone was
  designated, a county may assess all or part of the cost of the
  transportation project against property within the zone. The
  assessment against each property in the zone may be levied and
  payable in installments in the same manner as provided by Sections
  372.016-372.018, Local Government Code, provided that the
  installments do not exceed the total amount of the tax abatement or
  other relief granted under Subsection (h). The county may elect to
  adopt and apply the provisions of Sections 372.015-372.020 and
  372.023, Local Government Code, to the assessment of costs and
  Sections 372.024-372.030, Local Government Code, to the issuance of
  bonds by the county to pay the cost of a transportation project.
  The commissioners court of the county may contract with a public or
  private entity to develop, redevelop, or improve a transportation
  project in the transportation reinvestment zone, including
  aesthetic improvements, and may pledge and assign to that entity
  all or a specified amount of the revenue the county receives from
  installment payments of the assessments for the payment of the
  costs of that transportation project. After a pledge or assignment
  is made, if the entity that received the pledge or assignment has
  itself pledged or assigned that amount to secure bonds or other
  obligations issued to obtain funding for the transportation
  project, the commissioners court of the county may not rescind its
  pledge or assignment until the bonds or other obligations secured
  by the pledge or assignment have been paid or discharged. Any
  amount received from installment payments of the assessments not
  pledged or assigned in connection with the transportation project
  may be used for other purposes associated with the transportation
  project or in the zone.
         (i)  In the alternative, to [To] assist the county in
  developing a transportation project [authorized under Section
  222.104], if authorized by the commission under Chapter 441, a road
  utility district may be formed under that chapter that has the same
  boundaries as a transportation reinvestment zone created under this
  section.
         (k)  A road utility district formed as provided by Subsection
  (i) may enter into an agreement [with the county to assume the
  obligation, if any, of the county] to fund development of a project
  [under Section 222.104] or to repay funds owed to the department
  [under Section 222.104].  Any amount paid for this purpose is
  considered to be an operating expense of the district.  Any taxes
  collected by the district that are not paid for this purpose may be
  used for any district purpose.
         (k-1)  To accommodate changes in the limits of the project
  for which a reinvestment zone was designated, the boundaries of a
  zone may be amended at any time, except that property may not be
  removed or excluded from a designated zone if any part of the
  assessment has been assigned or pledged directly by the county or
  through another entity to secure bonds or other obligations issued
  to obtain funding of the project, and property may not be added to a
  designated zone unless the governing body of the municipality
  complies with Subsections (e) and (f).
         (l)  Except as provided by Subsection (m), a tax abatement
  agreement entered into under Subsection (h), or an order or
  resolution on the abatement of taxes or the grant of relief from
  taxes under that subsection, terminates on December 31 of the year
  in which the county completes any contractual requirement that
  included the pledge or assignment of assessments [of money]
  collected under this section.
         SECTION 25.05.  Subchapter E, Chapter 222, Transportation
  Code, is amended by adding Sections 222.108 and 222.109 to read as
  follows:
         Sec. 222.108.  TRANSPORTATION REINVESTMENT ZONES FOR OTHER
  TRANSPORTATION PROJECTS. (a)  Notwithstanding the requirement in
  Sections 222.106(b) and 222.107(b) that a transportation
  reinvestment zone be established in connection with a project under
  Section 222.104, a municipality or county may establish a
  transportation reinvestment zone for any transportation project.
  If all or part of the transportation project is subject to oversight
  by the department, at the option of the governing body of the
  municipality or county, the department may delegate full
  responsibility for the development, design, letting of bids, and
  construction of the project, including project oversight and
  inspection, to the municipality or county.
         (b)  A transportation project developed under Subsection (a)
  that is on the state highway system must comply with state design
  criteria unless the department grants an exception to the
  municipality or county.
         (c)  In this section, "transportation project" has the
  meaning assigned by Section 370.003.
         Sec. 222.109.  REDUCTION PROHIBITED. (a)  A municipality or
  county may not be penalized with a reduction in traditional
  transportation funding because of the designation and use of a
  transportation reinvestment zone under this chapter. Any funding
  from the department identified for a project before the date that a
  transportation reinvestment zone is designated may not be reduced
  because the transportation reinvestment zone is designated in
  connection with that project.
         (b)  The department may not reduce any allocation of
  traditional transportation funding to any of its districts because
  a district contains a municipality or county that contains a
  transportation reinvestment zone designated under this chapter.
  ARTICLE 26.  TERMINATION OF COMPREHENSIVE DEVELOPMENT AGREEMENT BY
  PURCHASE
         SECTION 26.01.  Sections 223.208(b) and (h), Transportation
  Code, are amended to read as follows:
         (b)  A comprehensive development agreement entered into
  under this subchapter or Section 227.023(c) must include a
  provision [may include any provision that the department considers
  appropriate, including provisions:
               [(1)]  providing for the purchase by the department[,
  under terms and conditions agreed to by the parties,] of the
  interest of a private participant in the comprehensive development
  agreement and related property as required by Section 371.101 and
  may include any other provision the department considers
  appropriate, including a provision:
               (1)  [, including any interest in a highway or other
  facility designed, developed, financed, constructed, operated, or
  maintained under the comprehensive development agreement;
               [(2)     establishing the purchase price for the interest
  of a private participant in the comprehensive development agreement
  and related property, which price may be determined in accordance
  with the methodology established by the parties in the
  comprehensive development agreement;
               [(3)]  providing for the payment of obligations
  incurred pursuant to the comprehensive development agreement,
  including any obligation to pay the purchase price for the interest
  of a private participant in the comprehensive development
  agreement, from any lawfully available source, including securing
  such obligations by a pledge of revenues of the commission or the
  department derived from the applicable project, which pledge shall
  have such priority as the department may establish;
               (2) [(4)]  permitting the private participant to
  pledge its rights under the comprehensive development agreement;
               (3) [(5)]  concerning the private participant's right
  to operate and collect revenue from the project; and
               (4) [(6)]  restricting the right of the commission or
  the department to terminate the private participant's right to
  operate and collect revenue from the project unless and until any
  applicable termination payments have been made.
         (h)  A comprehensive development agreement with a private
  participant that includes the collection by the private participant
  of tolls for the use of a toll project may be for a term not longer
  than 50 years from the later of the date of final acceptance of the
  project or the start of revenue operations by the private
  participant, not to exceed a total term of 52 years. [The
  comprehensive development agreement must contain an explicit
  mechanism for setting the price for the purchase by the department
  of the interest of the private participant in the comprehensive
  development agreement and related property, including any interest
  in a highway or other facility designed, developed, financed,
  constructed, operated, or maintained under the agreement.]
         SECTION 26.02.  Sections 366.407(b) and (g), Transportation
  Code, are amended to read as follows:
         (b)  A comprehensive development agreement entered into
  under this subchapter must [may] include [any provision the
  authority considers appropriate, including] a provision[:
               [(1)]  providing for the purchase by the authority[,
  under terms and conditions agreed to by the parties,] of the
  interest of a private participant in the comprehensive development
  agreement as required by Section 371.101 and may include any other
  provision the authority considers appropriate, including a
  provision:
               (1)  [and related property, including any interest in a
  turnpike project designed, developed, financed, constructed,
  operated, or maintained under the comprehensive development
  agreement;
               [(2)     establishing the purchase price, as determined in
  accordance with the methodology established by the parties in the
  comprehensive development agreement, for the interest of a private
  participant in the comprehensive development agreement and related
  property;
               [(3)]  providing for the payment of an obligation
  incurred under the comprehensive development agreement, including
  an obligation to pay the purchase price for the interest of a
  private participant in the comprehensive development agreement,
  from any available source, including securing the obligation by a
  pledge of revenues of the authority derived from the applicable
  project, which pledge shall have priority as established by the
  authority;
               (2) [(4)]  permitting the private participant to
  pledge its rights under the comprehensive development agreement;
               (3) [(5)]  concerning the private participant's right
  to operate and collect revenue from the turnpike project; and
               (4) [(6)]  restricting the right of the authority to
  terminate the private participant's right to operate and collect
  revenue from the turnpike project unless and until any applicable
  termination payments have been made.
         (g)  A [Except as provided by this subsection, a]
  comprehensive development agreement with a private participant
  that includes the collection by the private participant of tolls
  for the use of a toll project may be for a term not longer than 50
  years from the later of the date of final acceptance of the project
  or the start of revenue operations by the private participant, not
  to exceed a total term of 52 years. [The contract must contain an
  explicit mechanism for setting the price for the purchase by the
  department of the interest of the private participant in the
  contract and related property, including any interest in a highway
  or other facility designed, developed, financed, constructed,
  operated, or maintained under the contract.]
         SECTION 26.03.  Section 370.311(b), Transportation Code, is
  amended to read as follows:
         (b)  A comprehensive development agreement entered into
  under Section 370.305 must include a provision authorizing the
  authority to purchase, under terms agreed to by the parties, the
  interest of a private equity investor in a transportation project
  as required by Section 371.101.
         SECTION 26.04.  Section 371.002, Transportation Code, as
  added by Chapter 264 (S.B. 792), Acts of the 80th Legislature,
  Regular Session, 2007, is amended to read as follows:
         Sec. 371.002.  APPLICABILITY. This chapter does not apply
  to:
               (1)  a project for which the commission selected an
  apparent best value proposer before May 1, 2007; or
               (2)  a publicly owned and operated toll project, as
  defined by Section 373.001.
         SECTION 26.05.  Section 371.101, Transportation Code, as
  added by Chapter 264 (S.B. 792), Acts of the 80th Legislature,
  Regular Session, 2007, is amended to read as follows:
         Sec. 371.101.  TERMINATION BY PURCHASE [FOR CONVENIENCE].
  (a)  A comprehensive development agreement must contain a
  provision authorizing the toll project entity to purchase, under
  terms agreed to by the parties:
               (1)  the interest of a private participant in the toll
  project that is the subject of the agreement; and
               (2)  related property, including any interest in a
  highway or other facility designed, developed, financed,
  constructed, operated, or maintained under the agreement.
         (b)  The provision must include a schedule stating a specific
  price for the purchase of the toll project at certain intervals from
  the date the project opens, not less than one year and not to exceed
  five years, over the term of the agreement.
         (c)  The provision must authorize the toll project entity to
  purchase the private entity's interest at a stated interval in an
  amount not to exceed the lesser of:
               (1)  the price stated for that interval; or
               (2)  the then fair market value of the private entity's
  interest, provided that the fair market value is not less than the
  private entity's outstanding debt at that time plus other
  reasonable costs associated with the purchase as defined in the
  comprehensive development agreement.
         (d)  A toll project entity may not, under any circumstance,
  purchase the private entity's interest for an amount higher than
  the stated interval amount.
         (e)  A contract provision to purchase the private entity's
  interest at the then fair market value as described by Subsection
  (c)(2) must contain a provision, mutually agreed on by the toll
  project entity and the private participant, detailing the
  calculation used to determine that value.
         (f)  The toll project entity shall request a proposed
  termination-by-purchase schedule in each request for detailed
  proposals and shall consider and score each schedule in each
  evaluation of proposals.
         (g)  A private entity shall, not later than 12 months before
  the date that a new price interval takes effect, notify the toll
  project entity of the beginning of the price interval. The toll
  project entity must notify the private entity as to whether it will
  exercise the option to purchase under this section not later than
  six months after the date it receives notice under this subsection.
         (h)  A toll project entity must notify the private entity of
  the toll project entity's intention to purchase the private
  entity's interest under this section not less than six months
  before the date of the purchase [A toll project entity having
  rulemaking authority by rule and a toll project entity without
  rulemaking authority by official action shall develop a formula for
  making termination payments to terminate a comprehensive
  development agreement under which a private participant receives
  the right to operate and collect revenue from a toll project. A
  formula must calculate an estimated amount of loss to the private
  participant as a result of the termination for convenience.
         [(b)     The formula shall be based on investments,
  expenditures, and the internal rate of return on equity under the
  agreed base case financial model as projected over the original
  term of the agreement, plus an agreed percentage markup on that
  amount.
         [(c)     A formula under Subsection (b) may not include any
  estimate of future revenue from the project, if not included in an
  agreed base case financial model under Subsection (b).
  Compensation to the private participant upon termination for
  convenience may not exceed the amount determined using the formula
  under Subsection (b)].
         SECTION 26.06.  Section 371.102, Transportation Code, as
  added by Chapter 264 (S.B. 792), Acts of the 80th Legislature,
  Regular Session, 2007, is amended to read as follows:
         Sec. 371.102.  TERMINATION OF CERTAIN COMPREHENSIVE
  DEVELOPMENT AGREEMENTS. (a)  If a toll project entity elects to
  terminate a comprehensive development agreement under which a
  private participant receives the right to operate and collect
  revenue from a project, the entity may:
               (1)  [if authorized to issue bonds for that purpose,]
  issue bonds or other obligations to:
                     (A)  make any applicable termination payments to
  the private participant; or
                     (B)  purchase the interest of the private
  participant in the comprehensive development agreement or related
  property; or
               (2)  provide for the payment of obligations of the
  private participant incurred pursuant to the comprehensive
  development agreement.
         (b)  A toll project entity has the same powers and duties
  relating to the financing of payments under Subsection (a)(1) as
  the toll project entity has under other applicable laws of this
  state, including Chapters 228, 284, 366, and 370 of this code and
  Chapter 1371, Government Code, relating to the financing of a toll
  project of that entity, including the ability to deposit the
  proceeds of bonds or other obligations and to pledge, encumber, and
  expend the proceeds and revenues of a toll project as provided by
  law.
         (c)  The powers held by the toll project entity include the
  power to authorize the issuance of bonds or other obligations and to
  pay all or part of the costs of a payment described in Subsection
  (a)(1), in the amount determined by the toll project entity under
  Section 371.101. Costs associated with a payment under Subsection
  (a)(1) are considered a cost of the project.
         (d)  This section shall be liberally construed to effect its
  purposes.
         SECTION 26.07.  (a) Section 371.101, Transportation Code,
  as amended by this Act, does not apply to a comprehensive
  development agreement for:
               (1)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of FM
  2499 to south of State Highway 360);
               (2)  the North Tarrant Express project in Tarrant and
  Dallas Counties (IH 820 and State Highway 121/State Highway 183
  from IH 35W to State Highway 161, IH 820 east from State Highway
  121/State Highway 183 to Randol Mill Road, and IH 35W from IH 30 to
  State Highway 170);
               (3)  the IH 635 managed lanes project in Dallas County
  (IH 635 from east of Luna Road to Greenville Avenue and IH 35E from
  south of the Loop 12/IH 35E split to south of Valwood Parkway);
               (4)  the Loop 9 project in Dallas County;
               (5)  a project located south of Refugio County on the
  ISTEA High Priority Corridor identified in Sections 1105(c)(18) and
  (20) of the Intermodal Surface Transportation Efficiency Act of
  1991 (Pub. L. No. 102-240), as amended by Section 1211 of the
  Transportation Equity Act for the 21st Century (Pub. L. No.
  105-178, as amended by Title IX, Pub. L. No. 105-206), if the
  project is part of the highway corridor designated by those laws;
               (6)  the following projects to be developed in
  connection with the projects described under Subdivision (5):
                     (A)  the Corpus Christi Southside Mobility
  Corridor;
                     (B)  the State Highway 358 managed lanes project
  and the State Highway 286 managed lanes project in Nueces County;
  and
                     (C)  the State Highway 550 spur project and the
  West Loop project in Cameron County; or
               (7)  a project on the IH 69 corridor in Bowie County.
         (b)  A project described by this section is governed by
  Section 371.101, Transportation Code, as it existed immediately
  before the effective date of this Act, and the former law is
  continued in effect for that purpose.
         SECTION 26.08.  The change in law made by this Act to Section
  223.208, Transportation Code, does not apply to a project described
  in Section 26.07 of this Act. A project described in that section
  is governed by Section 223.208, Transportation Code, as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
  ARTICLE 27. DEVELOPMENT OF TOLL PROJECT IN AREA WITH MORE THAN ONE
  TOLL PROJECT ENTITY
         SECTION 27.01.  Section 284.004(b), Transportation Code, is
  amended to read as follows:
         (b)  In addition to authority granted by other law, a county
  may use state highway right-of-way and may access state highway
  right-of-way in accordance with Sections 228.011 and 373.102
  [228.0111].
         SECTION 27.02.  Section 284.061(d), Transportation Code, is
  amended to read as follows:
         (d)  Subject to the reimbursement requirements of Section
  373.102, a [A] county has full easements and rights-of-way through,
  across, under, and over any property owned by this state that are
  necessary or convenient to construct, acquire, or efficiently
  operate a project under this chapter.
         SECTION 27.03.  Section 366.170(c), Transportation Code, is
  amended to read as follows:
         (c)  An authority has full easements and rights-of-way
  through, across, under, and over any property owned by the state or
  any local governmental entity that are necessary or convenient to
  construct, acquire, or efficiently operate a turnpike project or
  system under this chapter. This subsection does not affect the
  obligation of the authority under other state law, including
  Section 373.102, to compensate or reimburse the state for the use or
  acquisition of an easement or right-of-way on property owned by or
  on behalf of the state. An authority's use of property owned by or
  on behalf of the state is subject to any covenants, conditions,
  restrictions, or limitations affecting that property.
         SECTION 27.04.  Section 370.169(c), Transportation Code, is
  amended to read as follows:
         (c)  An authority has full easements and rights-of-way
  through, across, under, and over any property owned by the state or
  any local government that are necessary or convenient to construct,
  acquire, or efficiently operate a transportation project or system
  under this chapter. This subsection does not affect the obligation
  of the authority under other law, including Section 373.102, to
  compensate or reimburse this state for the use or acquisition of an
  easement or right-of-way on property owned by or on behalf of this
  state. An authority's use of property owned by or on behalf of this
  state is subject to any covenants, conditions, restrictions, or
  limitations affecting that property.
         SECTION 27.05.  Subtitle G, Title 6, Transportation Code, is
  amended by adding Chapter 373 to read as follows:
  CHAPTER 373. TOLL PROJECTS LOCATED IN TERRITORY OF LOCAL TOLL
  PROJECT ENTITY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 373.001.  DEFINITIONS. In this chapter:
               (1)  "Local toll project entity" means an entity, other
  than the department, that is authorized by law to acquire, design,
  construct, finance, operate, and maintain a toll project,
  including:
                     (A)  a regional tollway authority under Chapter
  366;
                     (B)  a regional mobility authority under Chapter
  370; or
                     (C)  a county acting under Chapter 284.
               (2)  "Privately operated or controlled toll project"
  means a toll project that is primarily commercial in nature and is
  designed and constructed by a private entity that holds a leasehold
  interest in or the right to operate and retain revenues from the
  toll project, regardless of whether the private entity operates the
  toll project or collects the revenue itself or engages a
  subcontractor or other entity to operate the toll project or
  collect the revenue. The term does not include a toll project for
  which the department or a toll project entity contracts with a
  private entity only for engineering, design, construction,
  finance, operation, maintenance, or other services.
               (3)  "Publicly owned and operated toll project" means a
  toll project owned and operated by the department or a local toll
  project entity in which a private entity does not have a leasehold
  interest or right to operate or retain revenue from the toll
  project. The term does not include a privately operated or
  controlled toll project, but may include a toll project for which a
  private entity provides:
                     (A)  engineering, design, construction, finance,
  operation, maintenance, or other services; or
                     (B)  financial assistance for the toll project
  that does not entitle the private entity to any ownership interest
  in or the right to operate or retain revenue from the toll project.
               (4)  "Toll project" means a toll project described by
  Section 201.001(b), regardless of whether the toll project is:
                     (A)  a part of the state highway system; or
                     (B)  subject to the jurisdiction of the
  department.
         Sec. 373.002.  APPLICABILITY.  (a) This chapter does not
  apply to a toll project described in Section 228.011.
         (b)  Except for Sections 373.003, 373.004, and 373.005, this
  chapter does not apply to:
               (1)  the U.S. 281 project in Bexar County from Loop 1604
  to the Comal County line;
               (2)  the Loop 49 project from IH 20 to State Highway 110
  in Smith County;
               (3)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of FM
  2499 to south of State Highway 360);
               (4)  the North Tarrant Express project in Tarrant and
  Dallas Counties (IH 820 and State Highway 121/State Highway 183
  from IH 35W to State Highway 161, IH 820 east from State Highway
  121/State Highway 183 to Randol Mill Road, and IH 35W from IH 30 to
  State Highway 170);
               (5)  the U.S. 290 project from east of U.S. 183 to east
  of FM 973 in Travis County;
               (6)  the State Highway 99 (Grand Parkway) project;
               (7)  the IH 635 managed lanes project in Dallas County
  (IH 635 from east of Luna Road to Greenville Avenue and IH 35E from
  south of the Loop 12/IH 35E split to south of Valwood Parkway);
               (8)  Phase 4 extension of the Dallas North Tollway in
  Collin and Denton Counties from U.S. 380 to the Grayson County line
  to be developed by North Texas Tollway Authority;
               (9)  the Southwest Parkway (State Highway 121) in
  Tarrant County from Interstate 30 to Dirks Road/Altamesa Boulevard
  and the Chisholm Trail project from Dirks Road/Altamesa Boulevard
  to U.S. Highway 67 in the City of Cleburne; or
               (10)  the Loop 9 project in Dallas County.
         Sec. 373.003.  PROJECT OWNED IN PERPETUITY. Unless a toll
  project is sold or otherwise transferred to another toll project
  entity in accordance with applicable law, including Sections
  228.151, 284.011, 366.036, 366.172, and 370.171, a toll project
  procured by the department or a local toll project entity
  determined by the process under Subchapter B is owned by that entity
  in perpetuity.
         Sec. 373.004.  GOVERNMENTAL AND NOT COMMERCIAL
  TRANSACTIONS. A transaction involving a local toll project entity
  under Section 228.011 or this chapter is not primarily commercial
  in nature but is an inherently governmental transaction whose
  purpose is to determine governmental jurisdiction, ownership,
  control, or other responsibilities with respect to a project.
         Sec. 373.005.  VALUATION DETERMINATION. Any determination
  of value, including best value, under this chapter or other
  applicable federal or state law for a comprehensive development
  agreement or other public-private partnership arrangement
  involving a toll project for which a local toll project entity has
  exercised its option under this chapter and has complied with all
  other conditions in this chapter for the development of the project
  by the local toll project entity must take into consideration
  factors the entity determines appropriate, including factors
  related to:
               (1)  oversight of the toll project;
               (2)  maintenance and operations costs of the toll
  project;
               (3)  the structure and rates of tolls;
               (4)  economic development impacts of the toll project;
  and
               (5)  social and environmental benefits and impacts of
  the toll project.
         Sec. 373.006.  LEGAL CHALLENGES CONCLUDED. For the purposes
  of this chapter, all legal challenges to development of a toll
  project are considered concluded when a judgment or order of a court
  with jurisdiction over the challenge becomes final and
  unappealable.
  [Sections 373.007-373.050 reserved for expansion]
  SUBCHAPTER B. PROCESS TO DETERMINE ENTITY TO DEVELOP, FINANCE,
  CONSTRUCT, AND OPERATE TOLL PROJECT
         Sec. 373.051.  INITIATION OF PROCESS. (a) At any time after
  a metropolitan planning organization approves the inclusion of a
  toll project to be located in the territory of a local toll project
  entity in the metropolitan transportation plan, the local toll
  project entity may notify the department in writing of the local
  toll project entity's intent to initiate the process described in
  this subchapter.
         (b)  The department may notify the local toll project entity
  in writing of the department's intent to initiate the process
  described in this subchapter at any time after a metropolitan
  planning organization has approved the inclusion of a toll project
  to be located in the territory of a local toll project entity in the
  metropolitan transportation plan and:
               (1)  the department has issued a finding of no
  significant impact for the project, or for a project for which an
  environmental impact statement is prepared, the department has
  approved the final environmental impact statement for the project;
  or
               (2)  for a project subject to environmental review
  requirements under federal law, the United States Department of
  Transportation Federal Highway Administration has issued a finding
  of no significant impact, or for a project for which an
  environmental impact statement is prepared, the department has
  submitted a final environmental impact statement to the Federal
  Highway Administration for approval.
         Sec. 373.052.  PUBLIC PROJECT BY LOCAL TOLL PROJECT ENTITY.
  (a) A local toll project entity has the first option to develop,
  finance, construct, and operate a toll project as a publicly owned
  and operated toll project. A local toll project entity has not more
  than 180 days after the date on which notification under Section
  373.051(a) is provided or notification under Section 373.051(b) is
  received to decide whether to exercise the option, unless the
  United States Department of Transportation Federal Highway
  Administration issues a record of decision for an environmental
  impact statement submitted by the department under Section
  373.051(b)(2) more than 60 days after the date the department
  provides notice under Section 373.051(b), in which event the local
  toll project entity has 120 days after the date the record of
  decision is issued to exercise the option. The option period under
  this subsection may be extended an additional 90 days by agreement
  of the department and the local toll project entity.
         (b)  If a local toll project entity exercises the option
  under Subsection (a), the local toll project entity after
  exercising the option must:
               (1)  within 180 days after the later of the date of
  exercising its option or the date on which all environmental
  approvals necessary for the development of the toll project are
  secured and all legal challenges to development are concluded,
  advertise for the initial procurement of required services,
  including, at a minimum, design services, for the project; and
               (2)  within two years after the date on which all
  environmental approvals necessary for the development are secured
  and all legal challenges to development are concluded, enter into a
  contract for the construction of the toll project.
         Sec. 373.053.  PUBLIC PROJECT BY DEPARTMENT. (a) If a local
  toll project entity fails or declines to exercise the option to
  develop, finance, construct, and operate a toll project under
  Section 373.052(a), or fails or declines to advertise for
  procurement or enter into a construction contract as required by
  Section 373.052(b), the department has the option to develop,
  finance, construct, and operate the toll project as a publicly
  owned and operated project. The department has not more than 60
  days after the date the local toll project entity fails or declines
  to exercise its option under Section 373.052(a) or fails or
  declines to advertise for procurement or enter into a construction
  contract as required by Section 373.052(b) to decide whether to
  exercise its option.
         (b)  If the department exercises its option under Subsection
  (a), the department after exercising the option must:
               (1)  within 180 days after the later of the date of
  exercising its option or the date on which all environmental
  approvals necessary for the development of the toll project are
  secured and all legal challenges to development are concluded,
  advertise for the initial procurement of required services,
  including, at a minimum, design services, for the project; and
               (2)  within two years after the date on which all
  environmental approvals necessary for the development are secured
  and all legal challenges to development are concluded, enter into a
  contract for the construction of the toll project.
         Sec. 373.054.  PRIVATE PROJECT BY LOCAL TOLL PROJECT ENTITY.
  (a) If the department fails or declines to exercise the option to
  develop, finance, construct, and operate a toll project under
  Section 373.053(a), or fails or declines to advertise for
  procurement or enter into a construction contract as required by
  Section 373.053(b), the local toll project entity has the option to
  develop, finance, construct, and operate the toll project as a
  privately operated or controlled toll project. Except as provided
  by Section 373.057(b), the local toll project entity has not more
  than 60 days after the date the department fails or declines to
  exercise its option under Section 373.053(a) or fails or declines
  to advertise for procurement or enter into a construction contract
  as required by Section 373.053(b) to decide whether to exercise its
  option.
         (b)  If the local toll project entity exercises its option
  under Subsection (a), the local toll project entity after
  exercising the option must:
               (1)  within 180 days after the later of the date of
  exercising its option or the date on which all environmental
  approvals necessary for the development of the toll project are
  secured and all legal challenges to development are concluded,
  advertise for the initial procurement of required services,
  including, at a minimum, design services, for the project; and
               (2)  within two years after the date on which all
  environmental approvals necessary for the development are secured
  and all legal challenges to development are concluded, enter into a
  contract for the construction of the toll project.
         Sec. 373.055.  PRIVATE PROJECT BY DEPARTMENT. (a) If a
  local toll project entity fails or declines to exercise the option
  to develop, finance, construct, and operate a toll project under
  Section 373.054(a), or fails or declines to advertise for
  procurement or enter into a construction contract as required by
  Section 373.054(b), the department has the option to develop,
  finance, construct, and operate the toll project as a privately
  operated or controlled toll project. The department has not more
  than 60 days after the date the local toll project entity fails or
  declines to exercise its option under Section 373.054(a) or fails
  or declines to advertise for procurement or enter into a
  construction contract as required by Section 373.054(b) to decide
  whether to exercise its option.
         (b)  If the department exercises its option under Subsection
  (a), the department after exercising the option must:
               (1)  within 180 days after the later of the date of
  exercising its option or the date on which all environmental
  approvals necessary for the development of the toll project are
  secured and all legal challenges to development are concluded,
  advertise for the initial procurement of required services,
  including, at a minimum, design services, for the project; and
               (2)  within two years after the date on which all
  environmental approvals necessary for the development are secured
  and all legal challenges to development are concluded, enter into a
  contract for the construction of the toll project.
         Sec. 373.056.  RE-INITIATION OF PROCESS. If the process
  described by Sections 373.051, 373.052, 373.053, 373.054, and
  373.055 concludes without the local toll project entity or the
  department entering into a contract for the construction of the
  toll project, either entity may re-initiate the process under this
  subchapter by submitting notice to the other entity in the manner
  provided by Section 373.051.
         Sec. 373.057.  WAIVER OF OPTION; ALTERATION OF TIMELINES.
  (a) The department or local toll project entity may at any time
  during the process established by this subchapter, including when
  the process is initiated under Section 373.051, decline to exercise
  an option of that entity under this subchapter.
         (b)  If the department declines to exercise its option under
  Section 373.053 before the 120th day after the date on which
  notification under Section 373.051(a) is provided to the local toll
  project entity or notification under Section 373.051(b) is received
  by the toll project entity, the local toll project entity must, in
  addition to deciding whether to exercise its option under Section
  373.052, decide whether to exercise its option under Section
  373.054 not later than the later of:
               (1)  the 180th day after the date notice is provided or
  received; or
               (2)  the end of the option period as extended under
  Section 373.052.
         (c)  The department and the applicable local toll project
  entity may, by written agreement, extend any time limit under this
  subchapter.
         Sec. 373.058.  SHARING OF PROJECT-RELATED INFORMATION. (a)
  If a local toll project entity or the department fails or declines
  to exercise an option or fails or declines to advertise for
  procurement or enter into a construction contract under Section
  373.052, 373.053, 373.054, or 373.055, the local toll project
  entity or the department, as applicable, must make available its
  traffic estimates, revenue estimates, plans, specifications,
  surveys, appraisals, and other work product developed for the toll
  project to the other entity.
         (b)  On entering into a contract for the construction of the
  toll project, the department or the local toll project entity, as
  applicable, shall reimburse the other entity for shared project
  work product that it uses.
         Sec. 373.059.  QUARTERLY PROGRESS REPORTS. After the
  department or a local toll project entity exercises an option under
  this subchapter, the department or local toll project entity, as
  applicable, shall issue a quarterly report on the progress of the
  development of the toll project. The report shall be made available
  to the public.
         Sec. 373.060.  ENVIRONMENTAL REVIEW. (a) The department or
  the local toll project entity may begin any environmental review
  process that may be required for a proposed toll project before
  initiating the process under this subchapter.
         (b)  If a local toll project entity initiates the process for
  development of a toll project under Section 373.051(a) and has not
  begun the environmental review of the project, the local toll
  project entity shall begin the environmental review within 180 days
  of exercising the option.
         Sec. 373.061.  PROJECT LOCATED IN TERRITORY OF MORE THAN ONE
  LOCAL TOLL PROJECT ENTITY. If a toll project is in the territory of
  more than one local toll project entity, only the local toll project
  entity that was first to be authorized by law to construct toll
  projects in that territory may exercise the options and other
  rights under this subchapter. A local toll project entity
  exercising an option or other right under this section:
               (1)  may do so only with respect to the portion of the
  project located in the territory of that local toll project entity;
  and
               (2)  may do so on behalf of another toll project entity
  in whose territory the project will be located.
  [Sections 373.062-373.100 reserved for expansion]
  SUBCHAPTER C. USE OF RIGHT-OF-WAY BY LOCAL TOLL PROJECT ENTITY
         Sec. 373.101.  USE OF STATE HIGHWAY RIGHT-OF-WAY. (a)
  Consistent with federal law, the commission and the department
  shall assist a local toll project entity in the development,
  financing, construction, and operation of a toll project for which
  the local toll project entity has exercised its option to develop,
  finance, construct, and operate the project under Subchapter B by
  allowing the local toll project entity to use state highway
  right-of-way and to access the state highway system as necessary to
  construct and operate the toll project.
         (b)  Notwithstanding any other law, the local toll project
  entity and the commission may agree to remove the toll project from
  the state highway system and transfer ownership to the local toll
  project entity.
         Sec. 373.102.  REIMBURSEMENT FOR USE OF STATE HIGHWAY
  RIGHT-OF-WAY. (a) The commission or the department may not require
  a local toll project entity to pay for the use of state highway
  right-of-way or access, except:
               (1)  to reimburse the department for actual costs
  incurred by the department that are owed to a third party, including
  the federal government, as a result of that use by the local toll
  project entity; and
               (2)  as required under Subsection (b).
         (b)  A local toll project entity shall reimburse the
  department for the department's actual costs to acquire the
  right-of-way in the manner provided in the payment schedule agreed
  to by the department and the local toll project entity. If the
  department cannot determine that amount, the amount must be
  determined based on the average historical right-of-way
  acquisition values for comparable right-of-way located in
  proximity to the project on the date of original acquisition of the
  right-of-way.
         (c)  In lieu of reimbursement, the local toll project entity
  may agree to pay to the department a portion of the revenues of the
  project, in the amount and for the period of time agreed to by the
  local toll project entity and the department.
         (d)  Money received by the department under this section
  shall be deposited in the state highway fund and, except for
  reimbursement for costs owed to a third party, used to fund
  additional projects in the department district in which the toll
  project is located.
         (e)  The commission or department may waive the requirement
  of reimbursement under this section.
         Sec. 373.103.  AGREEMENT FOR USE OF RIGHT-OF-WAY. A local
  toll project entity shall enter into an agreement with the
  department for any project for which the entity has exercised its
  option to develop, finance, construct, and operate the project
  under Subchapter B and for which the entity intends to use state
  highway right-of-way. The agreement must contain provisions
  necessary to ensure that the local toll project entity's
  construction, maintenance, and operation of the project complies
  with the requirements of applicable state and federal law.
         Sec. 373.104.  LIABILITY FOR DAMAGES. (a) Notwithstanding
  any other law, the commission and the department are not liable for
  any damages that result from a local toll project entity's use of
  state highway right-of-way or access to the state highway system
  under this subchapter, regardless of the legal theory, statute, or
  cause of action under which liability is asserted.
         (b)  An agreement entered into by a local toll project entity
  and the department in connection with a toll project that is
  financed, constructed, or operated by the local toll project entity
  and that is on or directly connected to a highway in the state
  highway system does not create a joint enterprise for liability
  purposes.
         Sec. 373.105.  COMPLIANCE WITH FEDERAL LAW. Notwithstanding
  an action taken by a local toll project entity under this
  subchapter, the commission or department may take any action that
  in its reasonable judgment is necessary to comply with any federal
  requirement to enable this state to receive federal-aid highway
  funds.
         SECTION 27.06.  Subchapter A, Chapter 228, Transportation
  Code, is amended by adding Section 228.014 to read as follows:
         Sec. 228.014.  DEVELOPMENT OF THE GRAND PARKWAY. (a) For
  the purposes of the application of Subdivision (1), Subsection (g)
  or Subdivision (1), Subsection (i) of Section 228.0111 to the State
  Highway 99 (Grand Parkway) project, the terms of this section shall
  apply.
         (b)  Subject to Subsection (h), the State Highway 99 (Grand
  Parkway) project shall be developed in multiple segments, as
  follows:
               (1)  Segment A from SH 146 to IH 45(S);
               (2)  Segment B from SH 288 to IH 45(S);
               (3)  Segment C from US 59(S) to SH 288;
               (4)  Segment D from US 59(S) to IH 10(W);
               (5)  Segment E from IH 10 (W) to US 290 (Northwest
  Freeway);
               (6)  Segment F-1 from US 290 (Northwest Freeway) to
  SH 249 (Tomball Parkway);
               (7)  Segment F-2 from SH 249 (Tomball Parkway) to
  IH 45 (N) (North Freeway);
               (8)  Segment G from IH 45(N) (North Freeway) to
  US 59(N) (Eastex Freeway);
               (9)  Segment H and Segment I-1 from US 59 (N) to
  IH 10 (E); and
               (10)  Segment I-2 from near SH 146 to IH 10 (E).
         (c)  Segments C through G shall constitute the western
  portion of the project. Segments A, B, H, I-1, and I-2 shall
  constitute the eastern portion of the project.
         (d)  The local toll project entity or the department, as
  applicable, must enter into a contract for the construction of each
  of Segments D, E, F-1, and F-2 of the project within, for a segment
  of the project, the two-year period described by Subdivision (1),
  Subsection (g), Section 228.0111, or Subdivision (1), Subsection
  (i), Section 228.0111, and must enter into a contract for the
  construction of Segment G of the project within three years after
  the date on which all environmental requirements necessary for the
  development of that segment are secured and all legal challenges to
  development are concluded. If the local toll project entity does
  not enter into a contract for construction of each of those segments
  of the project within the two or three year period applicable to
  that segment, the department shall have the option to develop,
  finance, construct, and operate the project pursuant to Section
  228.0111(i).
         (e)  In any event, a local toll project entity or the
  department, as applicable, is not required to enter into a
  construction contract for Segment C before the second anniversary
  of the date construction of the remainder of the western portion has
  been completed.
         (f)  For the eastern portion of the project, a local toll
  project entity or the department, as applicable, is not required to
  enter into a construction contract for any segment before the
  second anniversary of the date on which the final segment of the
  western portion is completed. After a construction contract has
  been entered into for the initial segment of the eastern portion,
  excluding Segment I-2, for each of the remaining segments of the
  eastern portion, a local toll project entity or the department, as
  applicable, is not required to enter into a construction contract
  for any remaining segment before the second anniversary of the date
  construction of a segment in the eastern portion contiguous to that
  initial segment, excluding Segment I-2, has been completed.
         (g)  In all events, the contracting requirements shall be
  subject to the securing of all environmental requirements necessary
  for the development of the project and the conclusion of all legal
  challenges to development of the project, as provided in
  Subdivision (1), Subsection (g), Section 228.0111, or Subdivision
  (1), Subsection (i), Section 228.0111, as applicable.
         (h)  The department and the local toll project entity may
  enter into an agreement modifying the segment descriptions and the
  development sequence specified in this section.
         (i)  The local toll project entity or the department, as
  applicable, may enter into one or more agreements, including a
  comprehensive development agreement, with a public or private
  entity relating to the construction, development, financing,
  operation and maintenance of the State Highway 99 (Grand Parkway)
  project. Notwithstanding any law to the contrary, the agreement
  may contain such provisions relating to revenue sharing and
  concession payments as the local toll project entity or the
  department, as applicable, may determine.
         SECTION 27.07.  Section 228.0111, Transportation Code, is
  repealed.
         SECTION 27.08.  The repeal of Section 228.0111,
  Transportation Code, by this Act does not affect any project
  described in Section 373.002(b), Transportation Code, as added by
  this Act. A project described in that subsection is governed by
  Section 228.0111, Transportation Code, as it existed immediately
  before the effective date of this Act, and that law is continued in
  effect for that purpose.
  ARTICLE 28. NONCOMPETITION PROVISIONS IN COMPREHENSIVE
  DEVELOPMENT AGREEMENTS
         SECTION 28.01.  Sections 371.103(b) and (c), Transportation
  Code, as added by Chapter 264 (S.B. 792), Acts of the 80th
  Legislature, Regular Session, 2007, are amended to read as follows:
         (b)  Except as provided by Subsection (c), a comprehensive
  development agreement may contain a provision authorizing the toll
  project entity to compensate the private participant in the
  agreement for the loss of toll revenues attributable to the
  construction by the entity of a limited access highway project
  located within an area that extends up to four miles from either
  side of the centerline of the project developed under the
  agreement, less the private participant's decreased operating and
  maintenance costs attributable to the highway project, if any. A
  provision under this subsection may be effective only for a period
  of 30 years or less from the effective date of the agreement.
         (c)  A comprehensive development agreement may not require
  the toll project entity to provide compensation for the
  construction of:
               (1)  a highway project contained in the state
  transportation plan or a transportation plan of a metropolitan
  planning organization in effect on the effective date of the
  agreement;
               (2)  work on or improvements to a highway project
  necessary for improved safety, or for maintenance or operational
  purposes;
               (3)  a high occupancy vehicle exclusive lane addition
  or other work on any highway project that is required by an
  environmental regulatory agency; [or]
               (4)  a transportation project that provides a mode of
  transportation that is not included in the project that is the
  subject of the comprehensive development agreement; or
               (5)  a highway designated an interstate highway.
         SECTION 28.02.  (a) The change in law made by this Act to
  Section 371.103, Transportation Code, does not apply to:
               (1)  the DFW Connector project in Tarrant and Dallas
  Counties (State Highway 114 from State Highway 114L Business to
  east of International Parkway and State Highway 121 from north of FM
  2499 to south of State Highway 360);
               (2)  the North Tarrant Express project in Tarrant and
  Dallas Counties (IH 820 and State Highway 121/State Highway 183
  from IH 35W to State Highway 161, IH 820 east from State Highway
  121/State Highway 183 to Randol Mill Road, and IH 35W from IH 30 to
  State Highway 170);
               (3)  the State Highway 99 (Grand Parkway) project;
               (4)  the IH 635 managed lanes project in Dallas County
  (IH 635 from east of Luna Road to Greenville Avenue and IH 35E from
  south of the Loop 12/IH 35E split to south of Valwood Parkway); or
               (5)  the Loop 9 project in Dallas County.
         (b)  A project described by Subsection (a) of this section is
  governed by Section 371.103, Transportation Code, as that section
  existed immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
  ARTICLE 29. TOLL COLLECTIONS
         SECTION 29.01.  Section 228.055, Transportation Code, is
  amended by amending Subsection (d) and adding Subsection (d-1) to
  read as follows:
         (d)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the department:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Section 228.054, with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, in a format agreed on by the
  department and the lessor, other than a photocopy or scan of a
  rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Section 228.054.
         (d-1)  If the lessor provides the required information
  within the period prescribed under Subsection (d), the department
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (d) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee of the vehicle
  for which the proper toll was not paid who is mailed a written
  notice of nonpayment under this subsection and fails to pay the
  proper toll and administrative fee within the time specified by the
  notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative fee for each event of nonpayment.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         SECTION 29.02.  Sections 228.056(b) and (c), Transportation
  Code, are amended to read as follows:
         (b)  In the prosecution of an offense under Section
  228.055(c), (d-1) [(d)], or (e):
               (1)  it is presumed that the notice of nonpayment was
  received on the fifth day after the date of mailing;
               (2)  a computer record of the department of the
  registered owner of the vehicle is prima facie evidence of its
  contents and that the defendant was the registered owner of the
  vehicle when the underlying event of nonpayment under Section
  228.054 occurred; and
               (3)  a copy of the rental, lease, or other contract
  document, or the electronic data provided to the department under
  Section 228.055(d), covering the vehicle on the date of the
  underlying event of nonpayment under Section 228.054 is prima facie
  evidence of its contents and that the defendant was the lessee of
  the vehicle when the underlying event of nonpayment under Section
  228.054 occurred.
         (c)  It is a defense to prosecution under Section 228.055(c),
  (d-1) [(d)], or (e) that the motor vehicle in question was stolen
  before the failure to pay the proper toll occurred and had not been
  recovered before the failure to pay occurred, but only if the theft
  was reported to the appropriate law enforcement authority before
  the earlier of:
               (1)  the occurrence of the failure to pay; or
               (2)  eight hours after the discovery of the theft.
         SECTION 29.03.  Section 284.0701, Transportation Code, is
  amended by amending Subsection (d) and adding Subsection (d-1) to
  read as follows:
         (d)  It is an exception to the application of Subsection (a)
  or (c) if the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Section 284.070, with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Section 284.070.
         (d-1)  If the lessor provides the required information
  within the period prescribed under Subsection (d), the authority
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (d) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee of the vehicle
  for which the proper toll was not paid who is mailed a written
  notice of nonpayment under this subsection and fails to pay the
  proper toll and administrative cost within the time specified by
  the notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative cost for each event of nonpayment.
  Each failure to pay a toll or administrative cost under this
  subsection is a separate offense.
         SECTION 29.04.  Sections 284.0702(b) and (c),
  Transportation Code, are amended to read as follows:
         (b)  In the prosecution of an offense under Section
  284.0701(c), (d-1) [(d)], or (e):
               (1)[,] a computer record of the department of the
  registered owner of the vehicle is prima facie evidence of its
  contents and that the defendant was the registered owner of the
  vehicle when the underlying event of nonpayment under Section
  284.070 occurred; and
               (2)  a copy of the rental, lease, or other contract
  document, or the electronic data provided to the authority under
  Section 284.0701(d), covering the vehicle on the date of the
  underlying event of nonpayment under Section 284.070 is prima facie
  evidence of its contents and that the defendant was the lessee of
  the vehicle when the underlying event of nonpayment under Section
  284.070 occurred.
         (c)  It is a defense to prosecution under Section
  284.0701(c), (d-1) [(d)], or (e) that the vehicle in question was
  stolen before the failure to pay the proper toll occurred and had
  not been recovered before the failure to pay occurred, but only if
  the theft was reported to the appropriate law enforcement authority
  before the earlier of:
               (1)  the occurrence of the failure to pay; or
               (2)  eight hours after the discovery of the theft.
         SECTION 29.05.  Section 366.178, Transportation Code, is
  amended by amending Subsections (d), (f), and (i) and adding
  Subsection (i-1) to read as follows:
         (d)  Notice of nonpayment under Subsection (c)(1) shall be
  sent by first-class mail not later than the 90th day after the date
  of the alleged failure to pay and may not require payment of the
  proper toll and the administrative fee before the 30th day after the
  date the notice is mailed. The registered owner shall pay a
  separate toll and administrative fee for each nonpayment.
         (f)  In the prosecution of a violation for nonpayment, proof
  that the vehicle passed through a toll collection facility without
  payment of the proper toll together with proof that the defendant
  was the registered owner or the driver of the vehicle when the
  failure to pay occurred, establishes the nonpayment of the
  registered owner. The proof may be by testimony of a peace officer
  or authority employee, video surveillance, or any other reasonable
  evidence, including a copy of the rental, lease, or other contract
  document or the electronic data provided to the authority under
  Subsection (i) that shows the defendant was the lessee of the
  vehicle when the underlying event of nonpayment occurred.
         (i)  A registered owner who is the lessor of a vehicle for
  which a notice of nonpayment has been issued is not liable if, not
  later than the 30th day after the date the notice of nonpayment is
  mailed, the registered owner provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document [lease agreement] covering the vehicle on the date of the
  nonpayment, with the[. The] name and address of the lessee [must
  be] clearly legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under this section.
         (i-1)  If the lessor timely provides the required
  information under Subsection (i), the lessee of the vehicle on the
  date of the violation is considered to be the owner of the vehicle
  for purposes of this section. The lessee is subject to prosecution
  for failure to pay the proper toll if the authority sends a notice
  of nonpayment to the lessee by first-class mail not later than the
  30th day after the date of the receipt of the information from the
  lessor.
         SECTION 29.06.  Section 370.177, Transportation Code, is
  amended by amending Subsections (e), (g), and (i) and adding
  Subsection (e-1) to read as follows:
         (e)  It is an exception to the application of Subsection (b)
  or (d) that the registered owner of the vehicle is a lessor of the
  vehicle and not later than the 30th day after the date the notice of
  nonpayment is mailed provides to the authority:
               (1)  a copy of the rental, lease, or other contract
  document covering the vehicle on the date of the nonpayment under
  Subsection (a), with the name and address of the lessee clearly
  legible; or
               (2)  electronic data, other than a photocopy or scan of
  a rental or lease contract, that contains the information required
  under Sections 521.460(c)(1), (2), and (3) covering the vehicle on
  the date of the nonpayment under Subsection (a).
         (e-1)  If the lessor provides the required information
  within the period prescribed under Subsection (e), the authority
  may send a notice of nonpayment to the lessee at the address
  provided under Subsection (e) [shown on the contract document] by
  first class mail before the 30th day after the date of receipt of
  the required information from the lessor. The lessee of the vehicle
  for which the proper toll was not paid who is mailed a written
  notice of nonpayment under this subsection and fails to pay the
  proper toll and administrative fee within the time specified by the
  notice of nonpayment commits an offense. The lessee shall pay a
  separate toll and administrative fee for each event of nonpayment.
  Each failure to pay a toll or administrative fee under this
  subsection is a separate offense.
         (g)  An offense under Subsection (d), (e-1) [(e)], or (f) is
  a misdemeanor punishable by a fine not to exceed $250.
         (i)  In the prosecution of an offense under this section,
  proof that the vehicle passed through a toll collection facility
  without payment of the proper toll together with proof that the
  defendant was the registered owner or the driver of the vehicle when
  the failure to pay occurred, establishes the nonpayment of the
  registered owner.  The proof may be by testimony of a peace officer
  or authority employee, video surveillance, or any other reasonable
  evidence, including:
               (1)  evidence obtained by automated enforcement
  technology that the authority determines is necessary, including
  automated enforcement technology described by Sections 228.058(a)
  and (b); or
               (2)  a copy of the rental, lease, or other contract
  document or the electronic data provided to the authority under
  Subsection (e) that shows the defendant was the lessee of the
  vehicle when the underlying event of nonpayment occurred.
  ARTICLE 30. PROVISIONS APPLICABLE TO MORE THAN ONE TYPE OF TOLL
  PROJECT
         SECTION 30.01.  (a) The heading to Section 371.052,
  Transportation Code, as added by Chapter 264 (S.B. 792), Acts of the
  80th Legislature, Regular Session, 2007, is amended to read as
  follows:
         Sec. 371.052.  NOTIFICATION TO LEGISLATIVE BUDGET BOARD [AND
  STATE AUDITOR].
         (b)  Section 371.052(c), Transportation Code, as added by
  Chapter 264 (S.B. 792), Acts of the 80th Legislature, Regular
  Session, 2007, is repealed.
  ARTICLE 31. ALLOCATION AND DISTRIBUTION OF TOLL PROJECT REVENUE
  AND PAYMENTS
         SECTION 31.01.  Section 228.006, Transportation Code, is
  amended by amending Subsection (a) and adding Subsection (a-1) to
  read as follows:
         (a)  The commission shall authorize the use of surplus
  revenue of a toll project or system to pay the costs of a
  transportation project, highway project, or air quality project
  within a region [department district] in which any part of the toll
  project is located.
         (a-1)  The department shall allocate the distribution of the
  surplus toll revenue to department districts in the region that are
  located in the boundaries of the metropolitan planning organization
  in which the toll project or system producing the surplus revenue is
  located based on the percentage of toll revenue from users in each
  department district of the project or system. To assist the
  department in determining the allocation, each entity responsible
  for collecting tolls for a project or system shall calculate on an
  annual basis the percentage of toll revenue from users of the
  project or system in each department district based on the number of
  recorded electronic toll collections.
         SECTION 31.02.  Section 228.012, Transportation Code, is
  amended to read as follows:
         Sec. 228.012.  PROJECT SUBACCOUNTS. (a) The department
  shall create a separate account in the state highway fund to hold
  payments received by the department under a comprehensive
  development agreement and[,] the surplus revenue of a toll project
  or system[, and payments received under Sections 228.0111(g)(2) and
  (i)(2)]. The department shall create subaccounts in the account
  for each project, system, or region. Interest earned on money in a
  subaccount shall be deposited to the credit of that subaccount.
         (b)  The department shall hold money in a subaccount in trust
  for the benefit of the region in which a project or system is
  located and may assign the responsibility for allocating money in a
  subaccount to a metropolitan planning organization in which the
  region is located. Money [Except as provided by Subsection (c),
  money] shall be allocated to projects authorized by Section
  228.0055 or Section 228.006, as applicable.
         (c)  [Money in a subaccount received from a county or the
  department under Section 228.0111 in connection with a project for
  which a county acting under Chapter 284 has the first option shall
  be allocated to transportation projects located in the county and
  the counties contiguous to that county.
         [(d)]  Not later than January 1 of each odd-numbered year,
  the department shall submit to the Legislative Budget Board, in the
  format prescribed by the Legislative Budget Board, a report on cash
  balances in the subaccounts created under this section and
  expenditures made with money in those subaccounts.
         (d) [(e)]  The commission or the department may not:
               (1)  revise the formula as provided in the department's
  unified transportation program or a successor document in a manner
  that results in a decrease of a department district's allocation
  because of the deposit of a payment into a project subaccount [or a
  commitment to undertake an additional transportation project under
  Section 228.0111]; or
               (2)  take any other action that would reduce funding
  allocated to a department district because of the deposit of a
  payment [received from the department or local toll project entity]
  into a project subaccount [or a commitment to undertake an
  additional transportation project under Section 228.0111].
         SECTION 31.03.  Section 228.012, Transportation Code, as
  amended by this article, applies only to payments received by the
  Texas Department of Transportation under that section on or after
  the effective date of this Act. Payments received by the department
  under Section 228.012, Transportation Code, before the effective
  date of this Act are governed by the law in effect immediately
  before the effective date of this Act, and that law is continued in
  effect for that purpose.
  ARTICLE 32. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEMS
         SECTION 32.01.  Section 707.002, Transportation Code, is
  amended to read as follows:
         Sec. 707.002.  AUTHORITY TO PROVIDE FOR CIVIL PENALTY AND
  INTERSECTION SAFETY COURSE. (a) The governing body of a local
  authority by ordinance may implement a photographic traffic signal
  enforcement system and provide that the owner of a motor vehicle is
  liable to the local authority for a civil penalty if, while facing
  only a steady red signal displayed by an electrically operated
  traffic-control signal located in the local authority, the vehicle
  is operated in violation of the instructions of that
  traffic-control signal, as specified by Section 544.007(d).
         (b)  Instead of a monetary penalty, the ordinance may require
  that the owner of the motor vehicle successfully complete an
  intersection safety course. A local authority that requires
  completion of an intersection safety course may:
               (1)  charge a fee set by the governing body of the local
  authority for the course; and
               (2)  contract with a third party to provide an
  intersection safety course.
         SECTION 32.02.  Chapter 707, Transportation Code, is amended
  by adding Section 707.0021 to read as follows:
         Sec. 707.0021.  IMPOSITION OF CIVIL PENALTY ON OWNER OF
  AUTHORIZED EMERGENCY VEHICLE. (a) In this section, "authorized
  emergency vehicle" has the meaning assigned by Section 541.201.
         (b)  A local authority may not impose or attempt to impose a
  civil penalty under this chapter on the owner of an authorized
  emergency vehicle.
         (c)  This section does not prohibit an employer from taking
  disciplinary action against an employee who as the operator of an
  authorized emergency vehicle operated the vehicle in violation of a
  rule or policy of the employer.
         SECTION 32.03.  Section 1001.002, Education Code, is amended
  by adding Subsection (d) to read as follows:
         (d)  An intersection safety course required by a local
  authority under Section 707.002, Transportation Code, is exempt
  from this chapter.
  ARTICLE 33. AUTOMATIC LICENSE PLATE IDENTIFICATION CAMERAS
         SECTION 33.01.  Subchapter C, Chapter 202, Transportation
  Code, is amended by adding Section 202.062 to read as follows:
         Sec. 202.062.  AGREEMENT TO LOCATE CERTAIN CAMERAS ON
  RIGHT-OF-WAY. (a)  In this section, "automatic license plate
  identification camera" means a camera that produces images on which
  optical character recognition is used to read the license plate on a
  vehicle.
         (b)  The department may enter into an agreement with the
  Department of Public Safety, a federal law enforcement agency, or a
  local law enforcement agency operating an automatic license plate
  identification camera under the authority of a federal law
  enforcement agency that authorizes the Department of Public Safety,
  federal law enforcement agency, or local law enforcement agency to
  install, maintain, and operate an automatic license plate
  identification camera on the right-of-way of a state highway.
         (c)  An agreement under this section must:
               (1)  be in writing;
               (2)  list the location of each automatic license plate
  identification camera to be installed on the state highway
  right-of-way;
               (3)  list the responsibilities of each party to the
  agreement;
               (4)  be for a fixed term; and
               (5)  be executed before an automatic license plate
  identification camera is installed.
         (d)  The images produced from an automatic license plate
  identification camera installed under an agreement authorized by
  this section may be used only for the purpose of:
               (1)  enforcing:
                     (A)  a penal law of this state, other than a
  traffic law the violation of which is a misdemeanor punishable by
  fine only; or
                     (B)  a penal law of the United States;
               (2)  locating:
                     (A)  an abducted child for whom the statewide
  alert system authorized by Subchapter L, Chapter 411, Government
  Code, has been activated;
                     (B)  a missing senior citizen for whom a statewide
  silver alert authorized by Subchapter M, Chapter 411, Government
  Code, has been activated; or
                     (C)  a person for whom an alert has been issued
  under an executive order of the governor because the person has
  seriously injured or killed a local, state, or federal law
  enforcement officer; or
               (3)  prosecuting a criminal offense, other than a
  traffic law the violation of which is a misdemeanor punishable by
  fine only, if the images are otherwise admissible in a judicial
  proceeding.
         (e)  A person commits an offense if the person uses an
  automatic license plate identification camera to produce an image
  other than in the manner and for the purpose specified by this
  section.
         (f)  An offense under this section is a Class C misdemeanor.
  ARTICLE 34. APPLICATION FOR DEALER GENERAL DISTINGUISHING NUMBER
         SECTION 34.01.  Section 503.029, Transportation Code, is
  amended by adding Subsections (d), (e), and (f) to read as follows:
         (d)  An applicant for an original dealer general
  distinguishing number who proposes to be an independent motor
  vehicle dealer, as specified under Subsection (a)(6)(B), and who
  does not hold a general distinguishing number as a franchised motor
  vehicle dealer or independent motor vehicle dealer, as specified
  under Subsection (a)(6)(A) or (B), must submit to the department
  evidence that the applicant completed a dealer education course,
  approved by the department, in the 12-month period preceding the
  date the application is filed. The course must be at least eight
  hours and not more than 12 hours in length. If the applicant is an
  entity, the course must be completed by one individual listed on the
  application as an owner.
         (e)  The department may approve a dealer education course
  under Subsection (d) only if the provider of the course:
               (1)  is a business with experience providing compliance
  education to independent motor vehicle dealers;
               (2)  provides online and CD-ROM versions of the course
  in English and in Spanish with assessment and verification
  capabilities;
               (3)  provides ongoing educational support by telephone
  or the Internet for one year at no additional cost to persons who
  have completed a course;
               (4)  provides at least one instructor-led dealer
  education course each month, including at least one instructor-led
  course each year in or near:
                     (A)  Austin;
                     (B)  Dallas and Fort Worth;
                     (C)  El Paso;
                     (D)  Houston; and
                     (E)  San Antonio; and
               (5)  has a curriculum review panel for the course that
  consists of at least four independent motor vehicle dealers who
  hold dealer general distinguishing numbers.
         (f)  An applicant is not required to comply with Subsection
  (d) if, at the time the application is submitted, a dealer education
  course is not currently approved by the department.
         SECTION 34.02.  Section 503.029(d), Transportation Code, as
  added by this Act, applies only to an application for an original
  independent motor vehicle dealer general distinguishing number
  filed with the Texas Department of Transportation on or after
  September 1, 2010. An application filed before that date is
  governed by the law in effect when the application was filed, and
  the former law is continued in effect for that purpose.
         SECTION 34.03.  Not later than January 1, 2010, the Texas
  Department of Transportation shall begin to approve or reject
  applications from providers of dealer education courses under
  Sections 503.029(d) and (e), Transportation Code, as added by this
  Act.
  ARTICLE 35. USE OF CERTAIN VEHICLES FOR LAW
  ENFORCEMENT PURPOSES
         SECTION 35.01.  Subdivisions (1) and (13-a), Section
  541.201, Transportation Code, are amended to read as follows:
               (1)  "Authorized emergency vehicle" means:
                     (A)  a fire department or police vehicle;
                     (B)  a public or private ambulance operated by a
  person who has been issued a license by the Texas Department of
  Health;
                     (C)  a municipal department or public service
  corporation emergency vehicle that has been designated or
  authorized by the governing body of a municipality;
                     (D)  a private vehicle of a volunteer firefighter
  or a certified emergency medical services employee or volunteer
  when responding to a fire alarm or medical emergency;
                     (E)  an industrial emergency response vehicle,
  including an industrial ambulance, when responding to an emergency,
  but only if the vehicle is operated in compliance with criteria in
  effect September 1, 1989, and established by the predecessor of the
  Texas Industrial Emergency Services Board of the State Firemen's
  and Fire Marshals' Association of Texas; [or]
                     (F)  a vehicle of a blood bank or tissue bank,
  accredited or approved under the laws of this state or the United
  States, when making emergency deliveries of blood, drugs,
  medicines, or organs; or
                     (G)  a vehicle used for law enforcement purposes
  that is owned or leased by a federal governmental entity.
               (13-a)  "Police vehicle" means a vehicle [of a
  governmental entity primarily] used by a peace officer, as defined
  by Article 2.12, Code of Criminal Procedure, for law enforcement
  purposes that:
                     (A)  is owned or leased by a governmental entity;
                     (B)  is owned or leased by the police department
  of a private institution of higher education that commissions peace
  officers under Section 51.212, Education Code; or
                     (C)  is:
                           (i)  a private vehicle owned or leased by the
  peace officer; and
                           (ii)  approved for use for law enforcement
  purposes by the head of the law enforcement agency that employs the
  peace officer, or by that person's designee, provided that use of
  the private vehicle complies with any applicable rule adopted by
  the commissioners court of a county under Section 170.001, Local
  Government Code.
         SECTION 35.02.  Subsection (b), Section 545.421,
  Transportation Code, is amended to read as follows:
         (b)  A signal under this section that is given by a police
  officer pursuing a vehicle may be by hand, voice, emergency light,
  or siren. The officer giving the signal must be in uniform and
  prominently display the officer's badge of office. The officer's
  vehicle must bear the insignia of a law enforcement agency,
  regardless of whether the vehicle displays an emergency light [be
  appropriately marked as an official police vehicle].
  ARTICLE 36. ABANDONED AND JUNKED VEHICLES
         SECTION 36.01.  Section 683.071, Transportation Code, is
  amended to read as follows:
         Sec. 683.071.  DEFINITION.  In this subchapter, "junked
  vehicle" means a vehicle that is self-propelled and:
               (1)  displays an expired license plate or invalid motor
  vehicle inspection certificate or does not display a license plate
  or motor vehicle inspection certificate; and [have lawfully
  attached to it:
                     [(A)  an unexpired license plate; and
                     [(B)     a valid motor vehicle inspection
  certificate; and]
               (2)  is:
                     (A)  wrecked, dismantled or partially dismantled,
  or discarded; or
                     (B)  inoperable and has remained inoperable for
  more than:
                           (i)  72 consecutive hours, if the vehicle is
  on public property; or
                           (ii)  30 consecutive days, if the vehicle is
  on private property.
  ARTICLE 37. AUTHORITY OF CERTAIN TRANSPORTATION AND TRANSIT
  AUTHORITIES TO ENFORCE COMPLIANCE WITH HIGH OCCUPANCY VEHICLE LANE
  RESTRICTIONS
         SECTION 37.01.  Subchapter B, Chapter 451, Transportation
  Code, is amended by adding Section 451.0615 to read as follows:
         Sec. 451.0615.  ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANES.
  (a) In this section:
               (1)  "Automated enforcement system" means a system
  that:
                     (A)  consists of a camera or other electrical or
  mechanical device that produces photographic, electronic, video,
  or digital images of a motor vehicle; and
                     (B)  is used to enforce compliance with
  instructions for high occupancy vehicle lane restrictions.
               (2)  "High occupancy vehicle lane" has the meaning
  assigned by Section 224.151.
               (3)  "Official traffic-control device" has the meaning
  assigned by Section 541.304 and includes a traffic pylon and double
  white lines on a highway.
               (4)  "Owner of a motor vehicle" means the owner of a
  motor vehicle as shown on the motor vehicle registration records of
  the department or the analogous department or agency of another
  state or country.
         (b)  A board by resolution may implement an automated
  enforcement system and provide that the owner of a motor vehicle,
  other than an authorized emergency vehicle as defined by Section
  541.201, is liable to the authority for a penalty if the vehicle is
  operated in violation of the instructions of an official
  traffic-control device regarding entering or exiting a high
  occupancy vehicle lane.
         (b-1)  A resolution adopted under Subsection (b) may not
  provide for the imposition of a penalty for a vehicle that is
  operated in violation of the minimum number of persons requirement
  for use of a high occupancy vehicle lane or for the purpose of
  enforcing compliance with posted speed limits.
         (c)  The resolution adopted under this section must:
               (1)  provide for a penalty of not more than $100;
               (2)  authorize an attorney employed by the authority or
  an attorney with whom the authority contracts to bring suit to
  collect the penalty;
               (3)  provide for notice of the violation to the owner of
  the motor vehicle that committed the violation;
               (4)  require that a peace officer commissioned by the
  authority:
                     (A)  review images produced by the automated
  enforcement system to determine whether the vehicle was operated in
  violation of the instructions of an official traffic-control device
  regarding entering or exiting a high occupancy vehicle lane; and
                     (B)  notarize the notice of violation before the
  notice is mailed to the owner of the motor vehicle that committed
  the violation;
               (5)  provide that a notice of violation is presumed to
  have been received on the fifth day after the date the notice is
  mailed if the notice was mailed to the owner of a motor vehicle;
               (6)  provide procedures by which the owner of the motor
  vehicle may request an administrative adjudication hearing to
  contest the imposition or the amount of the penalty;
               (7)  allow for the use of images produced by the
  automated enforcement system authorized by this section; and
               (8)  provide for other procedures the board determines
  are necessary for the imposition of a penalty authorized by this
  section.
         (d)  Except as provided by Subsection (e), an image produced
  by an automated enforcement system may not be used to prosecute a
  criminal offense.
         (e)  An image produced by an automated enforcement system may
  be used to prosecute a criminal offense defined by Chapter 19, 20,
  20A, 31, 38, or 49, Penal Code.
         (f)  This section does not apply to an authority in which the
  principal municipality has a population of more than 1.9 million.
         SECTION 37.02.  Subchapter B, Chapter 452, Transportation
  Code, is amended by adding Section 452.0615 to read as follows:
         Sec. 452.0615.  ENFORCEMENT OF HIGH OCCUPANCY VEHICLE LANES.
  (a) In this section:
               (1)  "Automated enforcement system" means a system
  that:
                     (A)  consists of a camera or other electrical or
  mechanical device that produces photographic, electronic, video,
  or digital images of a motor vehicle; and
                     (B)  is used to enforce compliance with
  instructions for high occupancy vehicle lane restrictions.
               (2)  "High occupancy vehicle lane" has the meaning
  assigned by Section 224.151.
               (3)  "Official traffic-control device" has the meaning
  assigned by Section 541.304 and includes a traffic pylon and double
  white lines on a highway.
               (4)  "Owner of a motor vehicle" means the owner of a
  motor vehicle as shown on the motor vehicle registration records of
  the department or the analogous department or agency of another
  state or country.
         (b)  This section applies only to an authority that:
               (1)  consists of one subregion governed by a
  subregional board created under Subchapter O; and
               (2)  has entered into an agreement with a governmental
  entity to:
                     (A)  operate a high occupancy vehicle lane; or
                     (B)  provide peace officers to enforce compliance
  with instructions for high occupancy vehicle lane restrictions.
         (c)  A board by resolution may implement an automated
  enforcement system and provide that the owner of a motor vehicle,
  other than an authorized emergency vehicle as defined by Section
  541.201, is liable to the authority for a penalty if the vehicle is
  operated in violation of the instructions of an official
  traffic-control device regarding entering or exiting a high
  occupancy vehicle lane.
         (c-1)  A resolution adopted under Subsection (c) may not
  provide for the imposition of a penalty for a vehicle that is
  operated in violation of the minimum number of persons requirement
  for use of a high occupancy vehicle lane or for the purpose of
  enforcing compliance with posted speed limits.
         (d)  The resolution adopted under this section must:
               (1)  provide for a penalty of not more than $100;
               (2)  authorize an attorney employed by the authority or
  an attorney with whom the authority contracts to bring suit to
  collect the penalty;
               (3)  provide for notice of the violation to the owner of
  the motor vehicle that committed the violation;
               (4)  require that a peace officer commissioned by the
  authority:
                     (A)  review images produced by the automated
  enforcement system to determine whether the vehicle was operated in
  violation of the instructions of an official traffic-control device
  regarding entering or exiting a high occupancy vehicle lane; and
                     (B)  notarize the notice of violation before the
  notice is mailed to the owner of the motor vehicle that committed
  the violation;
               (5)  provide that a notice of violation is presumed to
  have been received on the fifth day after the date the notice is
  mailed if the notice was mailed to the owner of a motor vehicle;
               (6)  provide procedures by which the owner of the motor
  vehicle may request an administrative adjudication hearing to
  contest the imposition or the amount of the penalty;
               (7)  allow for the use of images produced by the
  automated enforcement system authorized by this section; and
               (8)  provide for other procedures the board determines
  are necessary for the imposition of a penalty authorized by this
  section.
         (e)  Except as provided by Subsection (f), an image produced
  by an automated enforcement system may not be used to prosecute a
  criminal offense.
         (f)  An image produced by an automated enforcement system may
  be used to prosecute a criminal offense defined by Chapter 19, 20,
  20A, 31, 38, or 49, Penal Code.
  ARTICLE 38.  REGIONAL TOLLWAY AUTHORITIES
         SECTION 38.01.  (a) Section 366.038, Transportation Code,
  is amended to read as follows:
         Sec. 366.038.  TOLLING SERVICES [TOLL COLLECTION]. (a)  In
  this section, "tolling services" means the tolling services
  normally provided through an authority's customer service center,
  including customer service, customer account maintenance,
  transponder supply, and toll collection and enforcement.
         (b)  An authority shall provide, for reasonable
  compensation, tolling [customer service and other toll collection
  and enforcement] services for a toll project in the boundaries of
  the authority, regardless of whether the toll project is developed,
  financed, constructed, and operated under an agreement, including a
  comprehensive development agreement, with the authority or another
  entity. This section does not restrict an authority from agreeing
  to provide additional tolling services in an agreement described in
  Subsection (d). Additional tolling services provided under an
  agreement under that subsection are subject to the provisions that
  apply to tolling services under this section.
         (c)  An authority may not provide financial security,
  including a cash collateral account, for the performance of tolling
  services the authority provides under this section if:
               (1)  the authority determines that providing security
  could restrict the amount, or increase the cost, of bonds or other
  debt obligations the authority may subsequently issue under this
  chapter; or
               (2)  the authority is not reimbursed its cost of
  providing the security.
         (d)  Before providing tolling services for a toll project
  under this section, an authority must enter into a written
  agreement that sets out the terms and conditions for the tolling
  services to be provided and the terms of compensation for those
  services.
         (e)  Toll revenues are the property of the entity that is
  entitled to the revenues under a tolling services agreement for the
  toll project, regardless of who holds or collects the revenues.
  Toll revenues that are held or collected by an authority under a
  tolling services agreement and are not the property of the
  authority are not subject to a claim adverse to the authority or a
  lien on or encumbrance against property of the authority. Toll
  revenues that are the property of the authority are not subject to a
  claim adverse to any other entity or a lien on or encumbrance
  against property of any other entity.
         (f)  An authority may agree in a tolling services agreement
  that its right and obligation to provide tolling services for the
  applicable toll project under this section are subject to
  termination for default, and that after a termination for default
  this section does not apply to that toll project.
         (g)  Any public or private entity, including an authority or
  the department, may agree to fund a cash collateral account for the
  purpose of providing money that may be withdrawn as provided in the
  tolling services agreement because of an authority's failure to
  make any payment as required by the tolling services agreement. An
  authority's written commitment to fully or partially fund a cash
  collateral account is conclusive evidence of the authority's
  determination that the commitment does not violate Subsection (c).
  The department may use money from any available source to fund a
  cash collateral account under this subsection.
         (b)  Subsection (c), Section 366.038, Transportation Code,
  as added by this section, does not apply to any project, or portion
  of any project, subject to the tolling services agreement between
  the North Texas Tollway Authority and the Texas Department of
  Transportation or a private participant in a comprehensive
  development agreement for the North Tarrant Express project in
  Tarrant County or the tolling services agreement for the IH-635
  managed lanes project in Dallas County if the agreement is entered
  into before September 1, 2009.
         SECTION 38.02.  Section 366.185, Transportation Code, is
  amended by adding Subsection (d-2) to read as follows:
         (d-2)  Notwithstanding Subsection (d-1), if the contract
  amount exceeds $50 million, the rules adopted under Subsection (d)
  may provide for a stipend to be offered to an unsuccessful
  design-build firm that submits a response to the authority's
  request for additional information, in an amount that:
               (1)  may exceed $250,000; and
               (2)  is reasonably necessary, as determined by the
  authority in its sole discretion, to compensate an unsuccessful
  firm for:
                     (A)  preliminary engineering costs associated
  with the development of the proposal by the firm; and
                     (B)  the value of the work product contained in
  the proposal, including the techniques, methods, processes, and
  information contained in the proposal.
         SECTION 38.03.  Section 366.303, Transportation Code, is
  amended by amending Subsection (d) and adding Subsections (f) and
  (g) to read as follows:
         (d)  The term of an agreement under Subsections (a)-(c) [this
  section] may not exceed 40 years.
         (f)  To accelerate a toll project's design, financing,
  construction, and operation by the entity ultimately responsible
  for the toll project's design, financing, construction, and
  operation, a county that is part of an authority, including a county
  acting under Chapter 284, may acquire right-of-way necessary to
  locate and preserve the proposed alignment for a potential toll
  project, and may obtain the environmental approvals, any necessary
  traffic and revenue studies, and any engineering data necessary to
  advance the feasibility of a potential toll project. For purposes
  of this subsection and Subsection (g), "toll project" includes:
               (1)  a project, as defined by Section 284.001;
               (2)  a turnpike project, as defined for this chapter;
  or
               (3)  any similar project consisting of one or more
  tolled lanes of a bridge, tunnel, or highway or an entire toll
  bridge, tunnel, or highway, and any improvement, extension, or
  expansion to the bridge, tunnel, or highway.
         (g)  A county that acquires right-of-way or obtains
  approvals, studies, or data under Subsection (f) may petition the
  applicable authority to negotiate a written agreement by which the
  county's and the authority's activities can be better coordinated
  and more efficiently accomplished. The agreement may include
  provisions by which the authority may agree to later reimburse the
  county for certain costs the county incurs for right-of-way and
  other deliverables transferred to and used by the authority if the
  authority ultimately develops the toll project. The department or
  the applicable metropolitan planning organization, or both, may be
  a party or parties to an agreement under this subsection if the
  county and the authority determine that the inclusion of one or both
  of those entities furthers the objectives of this subsection.
  ARTICLE 39. AUTOMATED TRAFFIC CONTROL SYSTEMS
         SECTION 39.01.  Section 542.2035, Transportation Code, is
  amended to read as follows:
         Sec. 542.2035.  LIMITATION ON MUNICIPALITIES AND COUNTIES.
  (a)  A municipality or county may not implement or operate an
  automated traffic control system with respect to a highway or
  street under its jurisdiction for the purpose of enforcing
  compliance with posted speed limits.  The attorney general shall
  enforce this subsection.
         (b)  In this section, "automated traffic control system"
  means a photographic device, radar device, laser device, or other
  electrical or mechanical device designed to:
               (1)  record the speed of a motor vehicle; and
               (2)  obtain one or more photographs or other recorded
  images of:
                     (A)  the vehicle;
                     (B)  the license plate attached to the vehicle; or
                     (C)  the operator of the vehicle.
         SECTION 39.02.  Subchapter B, Chapter 542, Transportation
  Code, is amended by adding Section 542.207 to read as follows:
         Sec. 542.207.  LIMITATION ON DEPARTMENT. (a)  In this
  section, "automated traffic control system" has the meaning
  assigned by Section 542.2035.
         (b)  The department may not implement or operate an automated
  traffic control system for the purpose of enforcing compliance with
  posted speed limits. The attorney general shall enforce this
  section.
  ARTICLE 40. CERTIFICATES OF TITLE; VEHICLE REGISTRATION
         SECTION 40.001.  Section 501.002, Transportation Code, is
  amended to read as follows:
         Sec. 501.002.  DEFINITIONS. In this chapter:
               (1)  "Certificate of title" means a printed record of
  title [an instrument] issued under Section 501.021.
               (1-a)  "Commercial fleet" means a group of at least 25
  nonapportioned commercial motor vehicles owned by a corporation,
  limited or general partnership, limited liability company, or other
  business entity and used for the business purposes of that entity.
               (2)  "Credit card" means a card, plate, or similar
  device used to make a purchase or to borrow money.
               (3)  "Dealer" has the meaning assigned by Section
  503.001 [means a person who purchases motor vehicles for sale at
  retail].
               (4)  "Debit card" means a card that enables the holder
  to withdraw money or to have the cost of a purchase charged directly
  to the holder's bank account.
               (5) [(3)]  "Department" means the Texas Department of
  Transportation.
               (6) [(4)]  "Distributor" has the meaning assigned by
  Chapter 2301, Occupations Code [means a person engaged in the
  business of selling to a dealer motor vehicles purchased from a
  manufacturer].
               (7) [(5)]  "First sale" means:
                     (A)  the bargain, sale, transfer, or delivery of a
  motor vehicle that has not been previously registered or titled
  [licensed], with intent to pass an interest in the motor vehicle,
  other than a lien, regardless of where the bargain, sale, transfer,
  or delivery occurred; and
                     (B)  the registration or titling [licensing] of
  that vehicle.
               [(6)     "House trailer" means a trailer designed for
  human habitation. The term does not include manufactured housing.
               [(7)     "Importer" means a person, other than a
  manufacturer, that brings a used motor vehicle into this state for
  sale in this state.]
               (8)  ["Importer's certificate" means a certificate for
  a used motor vehicle brought into this state for sale in this state.
               [(9)]  "Lien" means:
                     (A)  a lien provided for by the constitution or
  statute in a motor vehicle;
                     (B)  a security interest, as defined by Section
  1.201, Business & Commerce Code, in a motor vehicle, other than an
  absolute title, created by any written security agreement, as
  defined by Section 9.102, Business & Commerce Code, including a
  lease, conditional sales contract, deed of trust, chattel mortgage,
  trust receipt, or reservation of title; or
                     (C)  a child support lien under Chapter 157,
  Family Code.
               (9) [(10)]  "Manufactured housing" has the meaning
  assigned by Chapter 1201, Occupations Code.
               (10) [(11)]  "Manufacturer" has the meaning assigned
  by Section 503.001 [means a person regularly engaged in the
  business of manufacturing or assembling new motor vehicles].
               (11) [(12)     "Manufacturer's permanent vehicle
  identification number" means the number affixed by the manufacturer
  to a motor vehicle in a manner and place easily accessible for
  physical examination and die-stamped or otherwise permanently
  affixed on one or more removable parts of the vehicle.
               [(13)]  "Motorcycle" has the meaning assigned by
  Section 541.201 [means a motor vehicle, other than a tractor,
  designed to propel itself with not more than three wheels in contact
  with the ground].
               (12) [(14)]  "Motor vehicle" means:
                     (A)  any motor driven or propelled vehicle
  required to be registered under the laws of this state;
                     (B)  a trailer or semitrailer, other than
  manufactured housing, that has a gross vehicle weight that exceeds
  4,000 pounds;
                     (C)  a travel [house] trailer;
                     (D)  an all-terrain vehicle, as defined by Section
  502.001, designed by the manufacturer for off-highway use that is
  not required to be registered under the laws of this state; or
                     (E)  a motorcycle, motor-driven cycle, or moped
  that is not required to be registered under the laws of this state
  [, other than a motorcycle, motor-driven cycle, or moped designed
  for and used exclusively on a golf course].
               (13) [(15)]  "New motor vehicle" has the meaning
  assigned by Chapter 2301, Occupations Code [means a motor vehicle
  that has not been the subject of a first sale].
               (14) [(16)]  "Owner" includes a person, other than a
  manufacturer, importer, distributor, or dealer, claiming title to
  or having a right to operate under a lien a motor vehicle that has
  been subject to a first sale.
               (15)  "Purchaser" means a person or entity, other than
  a manufacturer, importer, distributor, or dealer, to which a motor
  vehicle is donated, given, sold, or otherwise transferred.
               (16)  "Record of title" means an electronic record of
  motor vehicle ownership in the department's motor vehicle database
  that is created under Subchapter I.
               (17)  "Seller" means a person or entity that donates,
  gives, sells, or otherwise transfers ownership of a motor vehicle.
               (18) [(17)]  "Semitrailer" means a vehicle that is
  designed or used with a motor vehicle so that part of the weight of
  the vehicle and its load rests on or is carried by another vehicle.
               [(18)     "Serial number" means a vehicle identification
  number that is affixed to a part of a motor vehicle and that is:
                     [(A)     the manufacturer's permanent vehicle
  identification number;
                     [(B)     a derivative number of the manufacturer's
  permanent vehicle identification number;
                     [(C)  the motor number; or
                     [(D)     the vehicle identification number assigned
  by the department.]
               (19)  "Steal" has the meaning assigned by Section
  31.01, Penal Code.
               (20)  "Subsequent sale" means:
                     (A)  the bargain, sale, transfer, or delivery of a
  used motor vehicle [that has been previously registered or licensed
  in this state or elsewhere], with intent to pass an interest in the
  vehicle, other than a lien [, regardless of where the bargain, sale,
  transfer, or delivery occurs]; and
                     (B)  the registration of the vehicle if
  registration is required under the laws of this state.
               (21)  "Title receipt" means a document [an instrument]
  issued under Section 501.024.
               (22)  "Trailer" means a vehicle that:
                     (A)  is designed or used to carry a load wholly on
  the trailer's own structure; and
                     (B)  is drawn or designed to be drawn by a motor
  vehicle.
               (23)  "Travel trailer" means a house trailer-type
  vehicle or a camper trailer:
                     (A)  that is a recreational vehicle defined under
  24 C.F.R. Section 3282.8(g); or
                     (B)  that:
                           (i)  is less than 8 feet in width and 40 feet
  in length, exclusive of any hitch installed on the vehicle;
                           (ii)  is designed primarily for use as
  temporary living quarters in connection with recreational,
  camping, travel, or seasonal use;
                           (iii)  is not used as a permanent dwelling;
  and
                           (iv)  is not a utility trailer, enclosed
  trailer, or other trailer that does not have human habitation as its
  primary function.
               (24) [(23)]  "Used motor vehicle" means a motor vehicle
  that has been the subject of a first sale.
               (25)  "Vehicle identification number" means:
                     (A)  the manufacturer's permanent vehicle
  identification number affixed by the manufacturer to the motor
  vehicle that is easily accessible for physical examination and
  permanently affixed on one or more removable parts of the vehicle;
  or
                     (B)  a serial number affixed to a part of a motor
  vehicle that is:
                           (i)  a derivative number of the
  manufacturer's permanent vehicle identification number;
                           (ii)  the motor number; or
                           (iii)  a vehicle identification number
  assigned by the department.
         SECTION 40.002.  The heading to Section 501.003,
  Transportation Code, is amended to read as follows:
         Sec. 501.003.  PURPOSE [CONSTRUCTION].
         SECTION 40.003.  Section 501.004(a), Transportation Code,
  is amended to read as follows:
         (a)  Except as provided by this section, this [This] chapter
  applies to all motor vehicles, including a motor vehicle owned by
  the state or a political subdivision of the state.
         SECTION 40.004.  Section 501.131, Transportation Code, is
  transferred to Subchapter A, Chapter 501, Transportation Code,
  renumbered as Section 501.0041, Transportation Code, and amended to
  read as follows:
         Sec. 501.0041 [501.131].  RULES; FORMS. (a) The department
  may adopt rules to administer this chapter.
         (b)  The department shall post on the Internet or[:
               [(1)     in addition to the forms required by this
  chapter, prescribe forms for a title receipt, manufacturer's
  certificate, and importer's certificate, and other forms the
  department determines necessary; and
               [(2)]  provide each county assessor-collector with a
  sufficient supply of any necessary [the] forms.
         SECTION 40.005.  Section 501.159, Transportation Code, is
  transferred to Subchapter A, Chapter 501, Transportation Code,
  renumbered as Section 501.006, Transportation Code, and amended to
  read as follows:
         Sec. 501.006 [501.159].  ALIAS [CERTIFICATE OF] TITLE. On
  receipt of a verified [written] request approved by the executive
  administrator of a law enforcement agency, the department may issue
  a [certificate of] title in the form requested by the executive
  administrator for a vehicle in an alias for the law enforcement
  agency's use in a covert criminal investigation.
         SECTION 40.006.  Section 501.021, Transportation Code, is
  amended to read as follows:
         Sec. 501.021.  [CERTIFICATE OF] TITLE FOR MOTOR VEHICLE.
  (a) A motor vehicle [certificate of] title [is an instrument]
  issued by the department must include [that includes]:
               (1)  the name and address of each [the] purchaser and
  seller at the first sale or [the transferee and transferor at] a
  subsequent sale;
               (2)  the [make of the motor] vehicle description;
               (3)  the [body type of the vehicle;
               [(4)     the manufacturer's permanent vehicle
  identification number of the vehicle or the vehicle's motor number
  if the vehicle was manufactured before the date that stamping a
  permanent identification number on a motor vehicle was universally
  adopted;
               [(5)  the serial number for the vehicle;
               [(6)     the number on the vehicle's current Texas license
  plates, if any;
               [(7)  a statement:
                     [(A)  that no lien on the vehicle is recorded; or
                     [(B)  of the] name and address of each lienholder
  and the date of each lien on the vehicle, listed in the
  chronological order in which the lien was recorded;
               (4) [(8)     a space for the signature of the owner of the
  vehicle;
               [(9)]  a statement indicating rights of survivorship
  under Section 501.031;
               (5) [(10)]  if the vehicle has an odometer, the
  odometer reading [indicated by the application for the certificate
  of title]; and
               (6) [(11)]  any other information required by the
  department.
         (b)  A printed certificate of title must bear the following
  statement on its face:
  "UNLESS OTHERWISE AUTHORIZED BY LAW, IT IS A VIOLATION OF STATE LAW
  TO SIGN THE NAME OF ANOTHER PERSON ON A CERTIFICATE OF TITLE OR
  OTHERWISE GIVE FALSE INFORMATION ON A CERTIFICATE OF TITLE."
         SECTION 40.007.  Section 501.022, Transportation Code, is
  amended to read as follows:
         Sec. 501.022.  MOTOR VEHICLE [CERTIFICATE OF] TITLE
  REQUIRED. (a) The owner of a motor vehicle registered in this
  state may not operate or permit the operation of the vehicle on a
  public highway until the owner obtains a [certificate of] title for
  the vehicle or until the owner obtains registration for the vehicle
  if a receipt evidencing title to the vehicle is issued under Section
  501.029(b) or Subchapter I.
         (b)  A person may not operate a motor vehicle registered in
  this state on a public highway if the person knows or has reason to
  believe that the owner has not obtained a [certificate of] title for
  the vehicle.
         (c)  The owner of a motor vehicle that is required to be
  registered in this state must apply for a [certificate of] title to
  [of] the vehicle before selling or disposing of the vehicle.
         (d)  Subsection (c) does not apply to a motor vehicle
  operated on a public highway in this state with a metal dealer's
  license plate or a dealer's or buyer's temporary [cardboard] tag
  attached to the vehicle as provided by Chapter 503.
         SECTION 40.008.  Section 501.023, Transportation Code, is
  amended to read as follows:
         Sec. 501.023.  APPLICATION FOR [CERTIFICATE OF] TITLE. (a)
  The owner of a motor vehicle must apply for a [certificate of] title
  as prescribed by the department [:
               [(1)]  to the county assessor-collector in the county
  in which:
               (1) [(A)]  the owner is domiciled; or
               (2) [(B)]  the motor vehicle is purchased or encumbered
  [; and
               [(2)  on a form prescribed by the department].
         (b)  The assessor-collector shall send the application to
  the department or enter it into the department's titling system
  within 72 [not later than 24] hours after receipt of [receiving] the
  application.
         (c)  The owner or a lessee of a commercial motor vehicle
  operating under the International Registration Plan or other
  agreement described by Section 502.091 [502.054] that is applying
  for a [certificate of] title for purposes of registration only may
  apply [must be made] directly to the department. Notwithstanding
  Section 501.138(a), an applicant for registration under this
  subsection shall pay [the department] the fee imposed by that
  section. The [department shall send the] fee shall be distributed
  to the appropriate county assessor-collector [for distribution] in
  the manner provided by Section 501.138.
         (d)  Applications submitted to the department electronically
  must request the purchaser's choice of county as stated in
  Subsection (a) as the recipient of all taxes, fees, and other
  revenue collected as a result of the transaction.
         SECTION 40.009.  (a) Effective September 1, 2009, Section
  501.0234(b), Transportation Code, is amended to read as follows:
         (b)  This section does not apply to a motor vehicle:
               (1)  that has been declared a total loss by an insurance
  company in the settlement or adjustment of a claim;
               (2)  for which the certificate of title has been
  surrendered in exchange for:
                     (A)  a salvage vehicle title issued under this
  chapter;
                     (B)  a nonrepairable vehicle title issued under
  this chapter;
                     (C)  a certificate of authority issued under
  Subchapter D, Chapter 683; or
                     (D)  an ownership document issued by another state
  that is comparable to a document described by Paragraphs (A)-(C);
  [or]
               (3)  with a gross weight in excess of 11,000 pounds; or
               (4)  purchased by a fleet buyer who is a full-service
  deputy under Section 520.008 and utilizes the dealer title
  application process developed to provide a method of submitting
  title transactions to the county in which the fleet buyer is a
  full-service deputy.
         (b)  Effective January 1, 2013, Sections 501.0234(a), (b),
  (d), and (e), Transportation Code, are amended to read as follows:
         (a)  A person who sells at the first or a subsequent sale a
  motor vehicle and who holds a general distinguishing number issued
  under Chapter 503 of this code or Chapter 2301, Occupations Code,
  shall:
               (1)  except as provided by this section, in the time and
  manner provided by law, apply, in the name of the purchaser of the
  vehicle, for the registration of the vehicle, if the vehicle is to
  be registered, and a [certificate of] title for the vehicle and file
  with the appropriate designated agent each document necessary to
  transfer title to or register the vehicle; and at the same time
               (2)  remit any required motor vehicle sales tax.
         (b)  This section does not apply to a motor vehicle:
               (1)  that has been declared a total loss by an insurance
  company in the settlement or adjustment of a claim;
               (2)  for which the [certificate of] title has been
  surrendered in exchange for:
                     (A)  a salvage vehicle title or salvage record of
  title issued under this chapter;
                     (B)  a nonrepairable vehicle title or
  nonrepairable record of title issued under this chapter or
  Subchapter D, Chapter 683;
                     [(C)     a certificate of authority issued under
  Subchapter D, Chapter 683;] or
                     (C) [(D)]  an ownership document issued by
  another state that is comparable to a document described by
  Paragraph (A) or (B) [Paragraphs (A)-(C)]; [or]
               (3)  with a gross weight in excess of 11,000 pounds; or
               (4)  purchased by a fleet buyer who utilizes the dealer
  title application process developed to provide a method to submit
  title transactions to counties that have approved the persons as
  full-service deputies under Section 502.114.
         (d)  A seller who applies for the registration or a
  [certificate of] title for a motor vehicle under Subsection (a)(1)
  shall apply in the county as directed by the purchaser from the
  counties set forth in Section 501.023 [of this code].
         (e)  The department shall develop [promulgate] a form or
  electronic process in [on] which the purchaser of a motor vehicle
  shall designate the purchaser's choice as set out in Section
  501.023 as the recipient of all taxes, fees, and other revenue
  collected as a result of the transaction, which the tax
  assessor-collector is authorized by law to retain. A seller shall
  make that form or electronic process available to the purchaser of a
  vehicle at the time of purchase.
         SECTION 40.010.  Section 501.0235, Transportation Code, is
  amended to read as follows:
         Sec. 501.0235.  DRIVER'S LICENSE OR PERSONAL IDENTIFICATION
  CERTIFICATE [SOCIAL SECURITY] NUMBER OF TITLE APPLICANT[:
  AUTOMATED REGISTRATION AND TITLE SYSTEM]. (a) The department
  shall require an applicant for a [certificate of] title to provide
  the applicant's driver's license or personal identification
  certificate [social security] number to the department.
         (b)  The [department or the county shall enter the
  applicant's social security] number shall be entered in the
  department's electronic titling system [database] but may not be
  printed [print that number] on the [certificate of] title.
         [(c)     This section applies only in a county in which the
  department's automated registration and title system has been
  implemented.]
         SECTION 40.011.  Section 501.024, Transportation Code, is
  amended to read as follows:
         Sec. 501.024.  TITLE RECEIPT. (a) A county
  assessor-collector who receives an application for a [certificate
  of] title shall issue a title receipt to the applicant containing
  the information concerning the motor vehicle required for issuance
  of a title under Section 501.021 or Subchapter I [,] after:
               (1)  the requirements of this chapter are met,
  including the payment of the fees required under Section 501.138;
  and
               (2)  the [, issue a title receipt on which is noted]
  information is entered into the department's titling system
  [concerning the motor vehicle required for the certificate of title
  under Section 501.021, including a statement of the existence of
  each lien as disclosed on the application or a statement that no
  lien is disclosed].
         (b)  If a lien is not disclosed on the application for a
  [certificate of] title, the assessor-collector shall issue a [mark
  the] title receipt ["original" and deliver it] to the applicant.
         (c)  If a lien is disclosed on the application for a
  [certificate of] title, the assessor-collector shall issue a
  duplicate title receipt to the lienholder [receipts. The
  assessor-collector shall:
               [(1)     mark one receipt "original" and mail or deliver
  it to the first lienholder disclosed on the application; and
               [(2)     mark the second receipt "duplicate original" and
  mail or deliver it to the address of the applicant provided on the
  application].
         (d)  A title receipt authorizes the operation of the motor
  vehicle on a public highway in this state for 10 days or until the
  [certificate of] title is issued, whichever period is shorter.
         SECTION 40.012.  Section 501.025, Transportation Code, is
  amended to read as follows:
         Sec. 501.025.  [TITLE RECEIPT REQUIRED ON FIRST SALE;]
  MANUFACTURER'S CERTIFICATE REQUIRED ON FIRST SALE. A county
  assessor-collector may not issue a title receipt on the first sale
  of a motor vehicle unless the applicant for the [certificate of]
  title provides [to the assessor-collector] the application for a
  [certificate of] title and a manufacturer's certificate in [, on] a
  manner [form] prescribed by the department [, that:
               [(1)     is assigned to the applicant by the manufacturer,
  distributor, or dealer shown on the manufacturer's certificate as
  the last transferee; and
               [(2)     shows the transfer of the vehicle from its
  manufacturer to the purchaser, whether a distributor, dealer, or
  owner, and each subsequent transfer from distributor to dealer,
  dealer to dealer, and dealer to applicant].
         SECTION 40.013.  Section 501.027, Transportation Code, is
  amended to read as follows:
         Sec. 501.027.  ISSUANCE OF [CERTIFICATE OF] TITLE. (a) On
  the day that a county assessor-collector issues a title receipt, a
  copy of the title receipt and all evidence of title [the
  assessor-collector] shall be submitted [mail] to the department in
  the period specified in Section 501.023(b) [:
               [(1)  a copy of the receipt; and
               [(2)     the evidence of title delivered to the
  assessor-collector by the applicant].
         (b)  Not later than the fifth day after the date the
  department receives an application for a [certificate of] title and
  the department determines the requirements of this chapter are met:
               (1)  the [, the department shall issue the certificate
  of] title shall be issued to the first lienholder or to the
  applicant if [. If] a lien is not disclosed on the application; or
               (2)  [,] the department shall notify [send the
  certificate by first class mail to] the applicant that the
  department's titling system has established a record of title of
  the motor vehicle in the applicant's name if a lien is not disclosed
  [at the address provided on the application]. If a lien is
  disclosed on the application, the department shall notify [send]
  the [certificate by first class mail to the first] lienholder that
  the lien has been perfected [as disclosed on the application].
         SECTION 40.014.  Section 501.0275, Transportation Code, is
  amended to read as follows:
         Sec. 501.0275.  ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.
  (a) The department shall issue a [certificate of] title for a motor
  vehicle that complies with the other requirements [for issuance of
  a certificate of title] under this chapter except that:
               (1)  the vehicle is not registered for a reason other
  than a reason provided by Section 501.051(a)(6) [501.051(6)]; and
               (2)  the applicant does not provide evidence of
  financial responsibility that complies with Section 502.046
  [502.153].
         (b)  On application for a [certificate of] title under this
  section, the applicant must surrender any license plates issued for
  the motor vehicle if the plates are not being transferred to another
  vehicle and any registration insignia for validation of those
  plates to the department.
         SECTION 40.015.  Section 501.0276, Transportation Code, is
  amended to read as follows:
         Sec. 501.0276.  DENIAL OF TITLE RECEIPT, [OR CERTIFICATE OF]
  TITLE, OR RECORD OF TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS
  TESTING. A county assessor-collector may not issue a title receipt
  and the department may not issue a certificate of title for a
  vehicle subject to Section 548.3011 unless proof that the vehicle
  has passed a vehicle emissions test as required by that section, in
  a manner [form] authorized by that section, is presented to the
  county assessor-collector with the application for a [certificate
  of] title.
         SECTION 40.016.  Section 501.029, Transportation Code, is
  amended to read as follows:
         Sec. 501.029.  ACCEPTABLE PROOF OF OWNERSHIP [USE OF
  REGISTRATION RECEIPT OR TITLE RECEIPT TO EVIDENCE TITLE]. (a) A
  person may use the department's record of title, a registration
  receipt issued under Chapter 502, or a title receipt to evidence
  ownership of [title to] a motor vehicle but [and] not to transfer an
  interest in or establish a lien on the vehicle.
         (b)  The department by rule may provide for the issuance of a
  receipt that evidences title to a motor vehicle for registration
  purposes only. The fee for application for the receipt is the fee
  applicable to application for a [certificate of] title.
         SECTION 40.017.  Sections 501.030(b), (d), (e), (f), and
  (g), Transportation Code, are amended to read as follows:
         (b)  Before a motor vehicle that was not manufactured for
  sale or distribution in the United States may be titled in this
  state, the applicant must:
               (1)  provide to the assessor-collector:
                     (A)  a bond release letter, with all attachments,
  issued by the United States Department of Transportation
  acknowledging:
                           (i)  receipt of a statement of compliance
  submitted by the importer of the vehicle; and
                           (ii)  that the statement meets the safety
  requirements of 19 C.F.R. Section 12.80(e);
                     (B)  a bond release letter, with all attachments,
  issued by the United States Environmental Protection Agency stating
  that the vehicle has been tested and shown to conform to federal
  emission requirements; and
                     (C)  a receipt or certificate issued by the United
  States Department of the Treasury showing that all gas guzzler
  taxes due on the vehicle under 26 U.S.C. Section 4064(a) have been
  paid; or
               (2)  provide to the assessor-collector proof,
  satisfactory to the department, [assessor-collector] that the
  vehicle was not brought into the United States from outside [of] the
  country.
         (d)  If a motor vehicle has not been titled or registered in
  the United States, the application for [certificate of] title must
  be accompanied by:
               (1)  a manufacturer's certificate of origin written in
  English issued by the vehicle manufacturer;
               (2)  the original documents that constitute valid proof
  of ownership in the country where the vehicle was originally
  purchased, with an English translation of the documents verified as
  to the accuracy of the translation by an affidavit of the
  translator; or
               (3)  if the vehicle was imported from a country that
  cancels the vehicle registration and title for export, the
  documents assigned to the vehicle after the registration and title
  were canceled, with an English translation of the documents
  verified as to the accuracy of the translation by an affidavit of
  the translator.
         (e)  Before a motor vehicle that is required to be registered
  in this state and that is brought into this state by a person other
  than a manufacturer or importer may be bargained, sold,
  transferred, or delivered with an intent to pass an interest in the
  vehicle or encumbered by a lien, the owner must apply for a
  [certificate of] title in [on] a manner [form] prescribed by the
  department to the county assessor-collector for the county in which
  the transaction is to take place. The assessor-collector may not
  issue a title receipt unless the applicant delivers to the
  assessor-collector satisfactory evidence [of title] showing that
  the applicant is the owner of the vehicle and that the vehicle is
  free of any undisclosed liens.
         (f)  A county assessor-collector may not be held liable for
  civil damages arising out of the assessor-collector's failure to
  reflect on the title receipt a lien or encumbrance on a motor
  vehicle to which Subsection (e) applies unless the
  [assessor-collector's] failure constitutes wilful or wanton
  negligence.
         (g)  Until an applicant has complied with this section:
               (1)  a county assessor-collector may not accept an
  application for [certificate of] title; and
               (2)  the applicant is not entitled to an appeal as
  provided by Sections 501.052 and 501.053.
         SECTION 40.018.  Section 501.031, Transportation Code, is
  amended to read as follows:
         Sec. 501.031.  RIGHTS OF SURVIVORSHIP AGREEMENT. (a) The
  department shall include on each [certificate of] title an optional
  [a] rights of survivorship agreement that [form. The form must]:
               (1)  provides [provide] that if the agreement is
  between [signed by] two or more eligible persons, the motor vehicle
  is held jointly by those persons with the interest of a person who
  dies to transfer [survive] to the surviving person or persons; and
               (2)  provides [provide blanks] for the acknowledgment
  by signature, either electronically or by hand, [signatures] of the
  persons.
         (b)  If the vehicle is registered in the name of one or more
  of the persons who acknowledged [signed] the agreement, the
  [certificate of] title may contain a:
               (1)  rights of survivorship agreement acknowledged
  [signed] by all the persons; or
               (2)  remark if a rights of survivorship agreement is
  [surrendered with the application for certificate of title or
  otherwise] on file with the department.
         (c)  Ownership [Except as provided in Subsection (g),
  ownership] of the vehicle may be transferred only:
               (1)  by all the persons acting jointly, if all the
  persons are alive; and
               (2)  on the death of one of the persons by the surviving
  person or persons by transferring ownership of the vehicle [the
  certificate of title], in the manner otherwise required by law [for
  transfer of ownership of the vehicle], with a copy of the death
  certificate of the deceased person [attached to the certificate of
  title application].
         (d)  A rights of survivorship agreement under this section
  may be revoked only if [by surrender of the certificate of title to
  the department and joint application by] the persons named in [who
  signed] the agreement file a joint application for a new title in
  the name of the person or persons designated in the application.
         (e)  A person is eligible to file [sign] a rights of
  survivorship agreement under this section if the person:
               (1)  is married and the spouse of the [signing] person
  is the only other party to the agreement;
               (2)  is unmarried and attests to that unmarried status
  by affidavit; or
               (3)  is married and provides the department with an
  affidavit from the [signing] person's spouse that attests that the
  [signing] person's interest in the vehicle is the [signing]
  person's separate property.
         (f)  The department may develop an optional electronic [If
  the title is being issued in connection with the sale of the
  vehicle, the seller is not eligible to sign a] rights of
  survivorship agreement for public use [under this section unless
  the seller is the child, grandchild, parent, grandparent, brother,
  or sister of each other person signing the agreement. A family
  relationship required by this subsection may be a relationship
  established by adoption.
         [(g)     If an agreement, other than the agreement provided for
  in Subsection (a), providing for right of survivorship is signed by
  two or more persons, the department shall issue a new certificate of
  title to the surviving person or persons upon application
  accompanied by a copy of the death certificate of the deceased
  person. The department may develop for public use under this
  subsection an optional rights of survivorship agreement form].
         SECTION 40.019.  Section 501.032, Transportation Code, is
  amended to read as follows:
         Sec. 501.032.  ASSIGNMENT OF VEHICLE IDENTIFICATION
  [SERIAL] NUMBER BY DEPARTMENT. (a) On proper application, the
  department shall assign a vehicle identification [a serial] number
  to a travel [house] trailer, a trailer or semitrailer that has a
  gross vehicle weight that exceeds 4,000 pounds, or an item of
  equipment, including a tractor, farm implement, unit of special
  mobile equipment, or unit of off-road construction equipment on
  which:
               (1)  a vehicle identification [a serial] number was not
  die-stamped by the manufacturer; or
               (2)  a vehicle identification [the serial] number
  die-stamped by the manufacturer has been lost, removed, or
  obliterated.
         (b)  The applicant shall die-stamp the assigned vehicle
  identification [serial] number at the place designated by the
  department on the travel [house] trailer, trailer, semitrailer, or
  equipment.
         (c)  The manufacturer's vehicle identification [serial]
  number or the vehicle identification [serial] number assigned by
  the department shall be affixed on the carriage or axle part of the
  travel [house] trailer, trailer, or semitrailer. The department
  shall use the number as the major identification of the vehicle in
  the issuance of a [certificate of] title.
         SECTION 40.020.  Sections 501.033(a), (b), and (d),
  Transportation Code, are amended to read as follows:
         (a)  A person determined by [the department or] a court to be
  the owner of a motor vehicle, a part of a motor vehicle, or an item
  of equipment including a tractor, farm implement, unit of special
  mobile equipment, or unit of off-road construction equipment [that
  has had the serial number removed, altered, or obliterated] may
  apply to the department for an assigned vehicle identification
  number that has been removed, altered, or obliterated.
         (b)  An application under this section must be in [on] a
  manner [form] prescribed [and furnished] by the department and
  accompanied by [the certificate of title for the vehicle or other]
  valid evidence of ownership as required by the department [if there
  is no certificate of title].
         (d)  The assigned vehicle identification number shall be
  die-stamped or otherwise affixed [to the motor vehicle, part, or
  item of equipment at the location and] in the manner designated by
  the department.
         SECTION 40.021.  Section 520.011, Transportation Code, is
  transferred to Subchapter B, Chapter 501, Transportation Code,
  renumbered as Section 501.0331, Transportation Code, and amended to
  read as follows:
         Sec. 501.0331  [520.011]. MOTOR NUMBER REQUIRED FOR
  [VEHICLE] REGISTRATION [; PENALTY]. [(a)] A person may not apply
  to the county assessor-collector for the registration of a motor
  vehicle from which the original motor number has been removed,
  erased, or destroyed until the motor vehicle bears the motor number
  assigned by the department.
         [(b)     A person commits an offense if the person violates this
  section. An offense under this subsection is a misdemeanor
  punishable by a fine of not less than $50 and not more than $100.]
         SECTION 40.022.  Section 520.012, Transportation Code, is
  transferred to Subchapter B, Chapter 501, Transportation Code,
  renumbered as Section 501.0332, Transportation Code, and amended to
  read as follows:
         Sec. 501.0332 [520.012].  APPLICATION FOR MOTOR NUMBER
  RECORD[; RECORD; PENALTY]. (a) To obtain a motor number assigned
  by the department, the owner of a motor vehicle that has had the
  original motor number removed, erased, or destroyed must file a
  sworn application with the department.
         (b)  The department shall maintain a record of [separate
  register for recording] each motor number assigned by the
  department that includes[. For each motor number assigned by the
  department, the record must indicate]:
               (1)  the motor number assigned by the department;
               (2)  the name and address of the owner of the motor
  vehicle; and
               (3)  the make, model, and year of manufacture of the
  motor vehicle.
         [(c)     A person who fails to comply with this section commits
  an offense. An offense under this subsection is a misdemeanor
  punishable by a fine of not less than $10 and not more than $100.]
         SECTION 40.023.  Section 501.034, Transportation Code, is
  amended to read as follows:
         Sec. 501.034.  ISSUANCE OF TITLE TO GOVERNMENT AGENCY. The
  department may issue a [certificate of] title to a government
  agency if a vehicle or part of a vehicle is:
               (1)  forfeited to the government agency;
               (2)  delivered by court order under the Code of
  Criminal Procedure to a government agency for official purposes; or
               (3)  sold as abandoned or unclaimed property under the
  Code of Criminal Procedure.
         SECTION 40.024.  Section 501.035, Transportation Code, is
  amended to read as follows:
         Sec. 501.035.  [CERTIFICATE OF] TITLE FOR FORMER MILITARY
  VEHICLE. (a) Notwithstanding any other law, the department may
  [shall] issue a [certificate of] title for a former military
  vehicle [that is not registered under the laws of this state] if all
  [other] requirements for issuance of a [certificate of] title are
  met.
         (b)  In this section, "former military vehicle" has the
  meaning assigned by Section 504.502 [502.275(o)].
         SECTION 40.025.  Section 501.036, Transportation Code, is
  amended to read as follows:
         Sec. 501.036.  [CERTIFICATE OF] TITLE FOR FARM SEMITRAILER.
  (a) Notwithstanding any other provision of this chapter, the
  department may issue a [certificate of] title for a farm
  semitrailer with a gross weight of more than 4,000 pounds if:
               (1)  the farm semitrailer is eligible for registration
  under Section 502.146 [504.504];  and
               (2)  all other requirements for issuance of a
  [certificate of] title are met.
         (b)  To obtain a [certificate of] title under this section,
  the owner of the farm semitrailer must:
               (1)  apply for the [certificate of] title in the manner
  required by Section 501.023; and
               (2)  pay the fee required by Section 501.138.
         (c)  The department shall adopt rules [and forms] to
  implement and administer this section.
         SECTION 40.026.  Section 501.051, Transportation Code, is
  amended to read as follows:
         Sec. 501.051.  GROUNDS FOR REFUSAL TO ISSUE OR FOR
  REVOCATION OR SUSPENSION OF TITLE [CERTIFICATE]. (a) A title may
  be refused, canceled, suspended, or revoked by the [The] department
  [shall refuse to issue a certificate of title or shall suspend or
  revoke a certificate of title] if:
               (1)  the application [for the certificate] contains a
  false or fraudulent statement;
               (2)  the applicant failed to furnish required
  information requested by the department;
               (3)  the applicant is not entitled to a [certificate
  of] title;
               (4)  the department has reason to believe that the
  motor vehicle is stolen;
               (5)  the department has reason to believe that the
  issuance of a [certificate of] title would defraud the owner or a
  lienholder of the motor vehicle;
               (6)  the registration for the motor vehicle is
  suspended or revoked; or
               (7)  the required fee has not been paid.
         (b)  The department may rescind, cancel, or revoke an
  application for a title if a notarized affidavit is presented to the
  department containing:
               (1)  a statement that the vehicle involved was a new
  motor vehicle in the process of a first sale;
               (2)  a statement that the dealer, the applicant, and
  any lienholder have canceled the sale;
               (3)  a statement that the vehicle:
                     (A)  was never in the possession of the title
  applicant; or
                     (B)  was in the possession of the title applicant;
  and
               (4)  the signatures of the dealer, the applicant, and
  any lienholder.
         (c)  A rescission, cancellation, or revocation containing
  the statement authorized under Subsection (b)(3)(B) does not negate
  the fact that the vehicle has been the subject of a previous retail
  sale.
         SECTION 40.027.  The heading to Section 501.052,
  Transportation Code, is amended to read as follows:
         Sec. 501.052.  HEARING ON REFUSAL TO ISSUE OR REVOCATION OR
  SUSPENSION OF [CERTIFICATE OF] TITLE; APPEAL.
         SECTION 40.028.  Sections 501.052(a), (d), and (e),
  Transportation Code, are amended to read as follows:
         (a)  An interested person aggrieved by a refusal,
  rescission, cancellation, suspension, or revocation under Section
  501.051 may apply for a hearing to the county assessor-collector
  for the county in which the person is a resident [domiciled]. On
  the day an assessor-collector receives the application, the
  assessor-collector shall notify the department of the date of the
  hearing.
         (d)  A determination of the assessor-collector is binding on
  the applicant and the department as to whether the department
  correctly refused to issue or correctly rescinded, canceled,
  revoked, or suspended the [certificate of] title.
         (e)  An applicant aggrieved by the determination under
  Subsection (d) may appeal to the county court of the county of the
  applicant's residence. An applicant must file an appeal not later
  than the fifth day after the date of the assessor-collector's
  determination. The county court judge shall try the appeal in the
  manner of other civil cases. All rights and immunities granted in
  the trial of a civil case are available to the interested parties.
  If the department's action is not sustained, the department shall
  promptly issue a [certificate of] title for the vehicle.
         SECTION 40.029.  Section 501.053, Transportation Code, is
  amended by amending Subsections (a), (b), and (d) and adding
  Subsection (e) to read as follows:
         (a)  As an alternative to the procedure provided by Section
  501.052, the person may file a bond with the department. On the
  filing of the bond the person [department] may obtain a [issue the
  certificate of] title.
         (b)  The bond must be:
               (1)  in the manner [form] prescribed by the department;
               (2)  executed by the applicant;
               (3)  issued by a person authorized to conduct a surety
  business in this state;
               (4)  in an amount equal to one and one-half times the
  value of the vehicle as determined by the department, which may set
  the value by appraisal if it is unable to determine that value; and
               (5)  conditioned to indemnify all prior owners and
  lienholders and all subsequent purchasers of the vehicle or persons
  who acquire a security interest in the vehicle, and their
  successors in interest, against any expense, loss, or damage,
  including reasonable attorney's fees, occurring because of the
  issuance of the [certificate of] title for the vehicle or for a
  defect in or undisclosed security interest on the right, title, or
  interest of the applicant to the vehicle.
         (d)  A bond under this section expires on the third
  anniversary of the date the bond became effective. [The department
  shall return an expired bond to the person who filed the bond unless
  the department has been notified of a pending action to recover on
  the bond.]
         (e)  The department by rule may establish a fee to cover the
  cost of administering this section.
         SECTION 40.030.  Section 501.071, Transportation Code, is
  amended to read as follows:
         Sec. 501.071.  SALE OF VEHICLE; TRANSFER OF TITLE. (a)
  Except as provided in Section 503.039, a motor vehicle may not be
  the subject of a subsequent sale unless the owner designated on [in]
  the [certificate of] title submits a transfer of ownership of
  [transfers] the [certificate of] title [at the time of the sale].
         (b)  The transfer of the [certificate of] title must be in
  [on] a manner [form] prescribed by the department that [includes a
  statement that]:
               (1)  certifies the purchaser [signer] is the owner of
  the vehicle; and
               (2)  certifies there are no liens on the vehicle or
  provides a release of each lien [except as shown] on the vehicle
  [certificate of title or as fully described in the statement].
         SECTION 40.031.  Section 501.072, Transportation Code, is
  amended to read as follows:
         Sec. 501.072.  ODOMETER DISCLOSURE STATEMENT. (a) Except
  as provided by Subsection (b) [(c)], the seller of a motor vehicle
  sold in this state shall provide to the buyer, in [on] a manner
  [form] prescribed by the department, a [written] disclosure of the
  vehicle's odometer reading at the time of the sale that complies
  with federal law. [The form must include space for the signature
  and printed name of both the seller and buyer.]
         (b)  [When application for a certificate of title is made,
  the owner shall record the current odometer reading on the
  application. The written disclosure required by Subsection (a)
  must accompany the application.
         [(c)]  An odometer disclosure statement is not required for
  the sale of a motor vehicle that:
               (1)  has a gross vehicle weight rating [manufacturer's
  rated carrying capacity] of more than 18,000 pounds [two tons];
               (2)  is not self-propelled;
               (3)  is 10 or more years old;
               (4)  is sold directly by the manufacturer to an agency
  of the United States government in conformity with contractual
  specifications; or
               (5)  is a new motor vehicle.
         SECTION 40.032.  Section 520.022, Transportation Code, is
  transferred to Subchapter D, Chapter 501, Transportation Code,
  renumbered as Section 501.0721, Transportation Code, and amended to
  read as follows:
         Sec. 501.0721 [520.022].  DELIVERY OF RECEIPT AND TITLE TO
  PURCHASER [TRANSFEREE; PENALTY]. [(a)] A person, whether acting
  for that person or another, who sells, trades, or otherwise
  transfers a used motor vehicle shall deliver to the purchaser
  [transferee] at the time of delivery of the vehicle [:
               [(1)     the license receipt issued by the department for
  registration of the vehicle, if the vehicle was required to be
  registered at the time of the delivery; and
               [(2)]  a properly assigned [certificate of] title or
  other evidence of title as required under this chapter [Chapter
  501].
         [(b)     A person commits an offense if the person violates this
  section. An offense under this subsection is a misdemeanor
  punishable by a fine not to exceed $200.]
         SECTION 40.033.  Sections 501.074(a), (b), and (c),
  Transportation Code, are amended to read as follows:
         (a)  The department shall issue a new [certificate of] title
  for a motor vehicle registered in this state for which the ownership
  is transferred by operation of law [, including by inheritance,
  devise or bequest, bankruptcy, receivership, judicial sale,] or
  other involuntary divestiture of ownership after receiving:
               (1)  a certified copy of an [the] order appointing a
  temporary administrator or of the probate proceedings;
               (2)  letters testamentary or letters of
  administration;
               (3)  if administration of an estate is not necessary,
  an affidavit showing that administration is not necessary,
  identifying all heirs, and including a statement by the heirs of the
  name in which the certificate shall be issued;
               (4)  a court order; or
               (5)  the bill of sale from an officer making a judicial
  sale.
         (b)  If a lien is foreclosed by nonjudicial means, the
  department may issue a new [certificate of] title in the name of the
  purchaser at the foreclosure sale on receiving the affidavit of the
  lienholder of the fact of the nonjudicial foreclosure.
         (c)  If a constitutional or statutory lien is foreclosed, the
  department may issue a new [certificate of] title in the name of the
  purchaser at the foreclosure sale on receiving:
               (1)  the affidavit of the lienholder of the fact of the
  creation of the lien and of the divestiture of title according to
  law; and
               (2)  proof of notice as required by Sections 70.004 and
  70.006, Property Code.
         SECTION 40.034.  Section 501.091, Transportation Code, is
  amended by amending Subdivisions (2), (3), (6), (7), (8), (9),
  (10), (11), (12), (14), (15), (16), (17), (18), and (19) and adding
  Subdivisions (10-a) and (16-a) to read as follows:
               (2)  "Casual sale" means the sale by a salvage vehicle
  dealer or an insurance company of five or fewer [not more than five]
  nonrepairable motor vehicles or salvage motor vehicles to the same
  person during a calendar year, but [. The term] does not include[:
                     [(A)]  a sale at auction to a salvage vehicle
  dealer, insurance company, or governmental entity [; or
                     [(B)     the sale of an export-only motor vehicle to
  a person who is not a resident of the United States].
               (3)  "Damage" means sudden damage to a motor vehicle
  caused by the motor vehicle being wrecked, burned, flooded, or
  stripped of major component parts. The term does not include:
                     (A)  gradual damage from any cause;
                     (B)  [,] sudden damage caused by hail;
                     (C)  [, or] any damage caused only to the exterior
  paint of the motor vehicle; or
                     (D)  theft, unless the motor vehicle was damaged
  during the theft and before recovery.
               (6)  "Major component part" means one of the following
  parts of a motor vehicle:
                     (A)  the engine;
                     (B)  the transmission;
                     (C)  the frame;
                     (D)  a fender;
                     (E)  the hood;
                     (F)  a door allowing entrance to or egress from
  the passenger compartment of the motor vehicle;
                     (G)  a bumper;
                     (H)  a quarter panel;
                     (I)  a deck lid, tailgate, or hatchback;
                     (J)  the cargo box of a vehicle with a gross
  vehicle weight of 10,000 pounds or less [one-ton or smaller truck],
  including a pickup truck;
                     (K)  the cab of a truck;
                     (L)  the body of a passenger motor vehicle;
                     (M)  the roof or floor pan of a passenger motor
  vehicle, if separate from the body of the motor vehicle.
               (7)  "Metal recycler" means a person who:
                     (A)  is [predominately] engaged in the business of
  obtaining, converting, or selling ferrous or nonferrous metal [that
  has served its original economic purpose to convert the metal, or
  sell the metal] for conversion[,] into raw material products
  consisting of prepared grades and having an existing or potential
  economic value;
                     (B)  has a facility to convert ferrous or
  nonferrous metal into raw material products [consisting of prepared
  grades and having an existing or potential economic value,] by
  method other than the exclusive use of hand tools, including the
  processing, sorting, cutting, classifying, cleaning, baling,
  wrapping, shredding, shearing, or changing the physical form or
  chemical content of the metal; and
                     (C)  sells or purchases the ferrous or nonferrous
  metal solely for use as raw material in the production of new
  products.
               (8)  "Motor vehicle" has the meaning assigned by
  Section 501.002 [501.002(14)].
               (9)  "Nonrepairable motor vehicle" means a motor
  vehicle that:
                     (A)  is damaged, wrecked, or burned to the extent
  that the only residual value of the vehicle is as a source of parts
  or scrap metal; or
                     (B)  comes into this state under a comparable
  [title or other] ownership document that indicates that the vehicle
  is nonrepairable [, junked, or for parts or dismantling only].
               (10)  "Nonrepairable vehicle title" means a printed
  document issued by the department that evidences ownership of a
  nonrepairable motor vehicle.
               (10-a)  "Nonrepairable record of title" means an
  electronic record of ownership of a nonrepairable motor vehicle.
               (11)  "Out-of-state buyer" means a person licensed in
  an automotive business by another state or jurisdiction who is [if
  the department has listed the holders of such a license as permitted
  purchasers of salvage motor vehicles or nonrepairable motor
  vehicles based on substantially similar licensing requirements and
  on whether salvage vehicle dealers licensed in Texas are] permitted
  to purchase salvage motor vehicles or nonrepairable motor vehicles
  in this state because the other state or jurisdiction allows
  salvage dealers licensed in this state to purchase vehicles in that
  state.
               (12)  "Out-of-state ownership document" means a
  negotiable document issued by another state or jurisdiction that
  the department considers sufficient to prove ownership of a
  nonrepairable motor vehicle or salvage motor vehicle and to support
  the issuance of a comparable Texas [certificate of] title for the
  motor vehicle. The term does not include any [a] title or
  certificate issued by the department [, including a regular
  certificate of title, a nonrepairable vehicle title, a salvage
  vehicle title, a Texas Salvage Certificate, Certificate of
  Authority to Demolish a Motor Vehicle, or another ownership
  document issued by the department].
               (14)  "Rebuilder" means a person who acquires and
  repairs, rebuilds, or reconstructs salvage motor vehicles for
  operation on a public highway[, three or more salvage motor
  vehicles in a calendar year].
               (15)  "Salvage motor vehicle" [:
                     [(A)] means a motor vehicle that:
                     (A) [(i)]  has damage to or is missing a major
  component part to the extent that the cost of repairs, including
  parts and labor other than the cost of materials and labor for
  repainting the motor vehicle and excluding sales tax on the total
  cost of repairs, exceeds the actual cash value of the motor vehicle
  immediately before the damage; or
                     (B) [(ii)  is damaged and that] comes into this
  state under an out-of-state salvage motor vehicle [certificate of]
  title or similar out-of-state ownership document [that states on
  its face "accident damage," "flood damage," "inoperable,"
  "rebuildable," "salvageable," or similar notation; and
                     [(B)     does not include an out-of-state motor
  vehicle with a "rebuilt," "prior salvage," "salvaged," or similar
  notation, a nonrepairable motor vehicle, or a motor vehicle for
  which an insurance company has paid a claim for:
                           [(i)  the cost of repairing hail damage; or
                           [(ii)     theft, unless the motor vehicle was
  damaged during the theft and before recovery to the extent
  described by Paragraph (A)(i)].
               (16)  "Salvage vehicle title" means a printed document
  issued by the department that evidences ownership of a salvage
  motor vehicle.
               (16-a)  "Salvage record of title" means an electronic
  record of ownership of a salvage motor vehicle.
               (17)  "Salvage vehicle dealer" means a person engaged
  in this state in the business of acquiring, selling, dismantling,
  repairing, rebuilding, reconstructing, or otherwise dealing in
  nonrepairable motor vehicles, salvage motor vehicles, or used parts
  regardless of whether the person holds a license issued by the
  department to engage in that business. [The term does not include a
  person who casually repairs, rebuilds, or reconstructs fewer than
  three salvage motor vehicles in the same calendar year.] The term
  includes a buyer licensed in another state but does not include an
  unlicensed [a] person who casually [engaged in the business of]:
                     (A)  repairs, rebuilds, or reconstructs five or
  fewer salvage motor vehicles or nonrepairable motor vehicles in the
  same calendar year [a salvage vehicle dealer, regardless of whether
  the person holds a license issued by the department to engage in
  that business]; or
                     (B)  buys five or fewer [dealing in] nonrepairable
  motor vehicles or salvage motor vehicles in the same calendar year
  [, regardless of whether the person deals in used parts; or
                     [(C)     dealing in used parts regardless of whether
  the person deals in nonrepairable motor vehicles or salvage motor
  vehicles].
               (18)  "Self-insured motor vehicle" means a motor
  vehicle for which the [evidence of ownership is a manufacturer's
  certificate of origin or for which the department or another state
  or jurisdiction has issued a regular certificate of title, is
  self-insured by the] owner [, and is owned by an individual, a
  business,] or a governmental entity assumes full financial
  responsibility for motor vehicle loss claims[,] without regard to
  the number of motor vehicles they own or operate. The term does not
  include a motor vehicle that is insured by an insurance company.
               (19)  "Used part" means a part that is salvaged,
  dismantled, or removed from a motor vehicle for resale as is or as
  repaired. The term includes a major component part but does not
  include a rebuildable or rebuilt core [, including an engine,
  block, crankshaft, transmission, or other core part that is
  acquired, possessed, or transferred in the ordinary course of
  business].
         SECTION 40.035.  Section 501.098, Transportation Code, is
  renumbered as Section 501.09111, Transportation Code, and amended
  to read as follows:
         Sec. 501.09111 [501.098].  RIGHTS AND LIMITATIONS OF
  [HOLDER OF] NONREPAIRABLE VEHICLE TITLE, NONREPAIRABLE RECORD OF
  TITLE, [OR] SALVAGE VEHICLE TITLE, OR SALVAGE RECORD OF TITLE. (a)
  A person who owns [holds] a nonrepairable [vehicle title for a]
  motor vehicle:
               (1)  is entitled to possess, transport, dismantle,
  scrap, destroy, record a lien as provided for in Section
  501.097(a)(3)(A), and sell, transfer, or release ownership of the
  motor vehicle or a used part from the motor vehicle; and
               (2)  may not:
                     (A)  operate or permit the operation of the motor
  vehicle on a public highway, in addition to any other requirement of
  law;
                     (B)  repair, rebuild, or reconstruct the motor
  vehicle; or
                     (C)  register the motor vehicle.
         (b)  A person who holds a nonrepairable certificate of title
  issued prior to September 1, 2003,[:
               [(1)]  is entitled to the same rights listed in
  Subsection (a) and may [:
                     [(A)]  repair, rebuild, or reconstruct the motor
  vehicle [;
                     [(B)     possess, transport, dismantle, scrap, or
  destroy the motor vehicle; and
                     [(C)     sell, transfer, or release ownership of the
  vehicle or a used part from the motor vehicle; and
               [(2)  may not:
                     [(A)     operate or permit the operation of the motor
  vehicle on a public highway, in addition to any other requirement of
  law; or
                     [(B)  register the motor vehicle].
         (c)  A person who owns [holds] a salvage [vehicle title for
  a] motor vehicle:
               (1)  is entitled to possess, transport, dismantle,
  scrap, destroy, repair, rebuild, reconstruct, record a lien on, and
  sell, transfer, or release ownership of the motor vehicle or a used
  part from the motor vehicle; and
               (2)  may not operate, register, or permit the operation
  of the motor vehicle on a public highway, in addition to any other
  requirement of law.
         SECTION 40.036.  Section 501.103, Transportation Code, is
  renumbered as Section 501.09112, Transportation Code, and amended
  to read as follows:
         Sec. 501.09112 [501.103].  APPEARANCE [COLOR] OF
  NONREPAIRABLE VEHICLE TITLE OR SALVAGE VEHICLE TITLE. (a) The
  department's printed [department shall print a] nonrepairable
  vehicle title:
               (1)  must [in a color that distinguishes it from a
  regular certificate of title or salvage vehicle title; and
               [(2)  so that it] clearly indicate [shows] that it is
  the negotiable ownership document for a nonrepairable motor
  vehicle;
               (2)  [.
         [(b)     A nonrepairable vehicle title must state on its face
  that the motor vehicle:
               [(1)]  may not be:
                     (A)  issued a regular [certificate of] title;
                     (B)  registered in this state; or
                     (C)  repaired, rebuilt, or reconstructed; and
               (3) [(2)]  may be used only as a source for used parts
  or scrap metal.
         (b) [(c)]  The department's printed [department shall print
  a] salvage vehicle title must [:
                     [(A)     in a color that distinguishes it from a
  regular certificate of title or nonrepairable vehicle title; and
                     [(B)  so that each document] clearly show [shows]
  that it is the ownership document for a salvage motor vehicle.
         (c) [(d)]  A salvage vehicle title or a salvage record of
  title for a vehicle that is a salvage motor vehicle because of
  damage caused exclusively by flood must bear a notation [on its
  face] that the department considers appropriate. If the title for a
  motor vehicle reflects the notation required by this subsection,
  the owner may sell, transfer, or release the motor vehicle only as
  provided by this subchapter.
         (d)  An electronic application for a nonrepairable vehicle
  title, nonrepairable record of title, salvage vehicle title, or
  salvage record of title must clearly advise the applicant of the
  same provisions required on a printed title.
         (e)  A nonrepairable vehicle title, nonrepairable record of
  title, salvage vehicle title, or salvage record of title in the
  department's electronic database must include appropriate remarks
  so that the vehicle record clearly shows the status of the vehicle
  [The department may provide a stamp to a person who is a licensed
  salvage vehicle dealer under Chapter 2302, Occupations Code, to
  mark the face of a title under this subchapter. The department
  shall provide the stamp to the person for a fee in the amount
  determined by the department to be necessary for the department to
  recover the cost of providing the stamp].
         SECTION 40.037.  Section 501.101, Transportation Code, is
  renumbered as Section 501.09113, Transportation Code, and amended
  to read as follows:
         Sec. 501.09113 [501.101].  OUT-OF-STATE SALVAGE OR REBUILT
  SALVAGE VEHICLE [ISSUANCE OF TITLE TO MOTOR VEHICLE BROUGHT INTO
  STATE]. (a) This section applies only to a motor vehicle brought
  into this state from another state or jurisdiction that has on any
  [certificate of] title or comparable out-of-state ownership
  document issued by the other state or jurisdiction:
               (1)  a "rebuilt," "salvage," or similar notation; or
               (2)  a "nonrepairable," "dismantle only," "parts
  only," "junked," "scrapped," or similar notation.
         (b)  On receipt of a complete application from the owner of
  the motor vehicle, the department shall issue the applicant the
  appropriate [certificate of] title for the motor vehicle.
         [(c)     A certificate of title issued under this section must
  show on its face:
               [(1)  the date of issuance;
               [(2)  the name and address of the owner;
               [(3)     any registration number assigned to the motor
  vehicle; and
               [(4)     a description of the motor vehicle or other
  notation the department considers necessary or appropriate.]
         SECTION 40.038.  The heading to Section 501.095,
  Transportation Code, is amended to read as follows:
         Sec. 501.095.  SALE, TRANSFER, OR RELEASE [OF NONREPAIRABLE
  MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE].
         SECTION 40.039.  Section 501.095, Transportation Code, is
  amended to read as follows:
         Sec. 501.095.  SALE, TRANSFER, OR RELEASE OF NONREPAIRABLE
  MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE. (a) If the department has
  not issued a nonrepairable vehicle title, nonrepairable record of
  title, [or] salvage vehicle title, or salvage record of title for
  the motor vehicle and a comparable [an] out-of-state ownership
  document for the motor vehicle has not been issued by another state
  or jurisdiction, a business or governmental entity described by
  Subdivisions (1)-(3) may sell, transfer, or release a nonrepairable
  motor vehicle or salvage motor vehicle only to a person who is:
               (1)  a licensed salvage vehicle dealer or metal
  recycler under Chapter 2302, Occupations Code;
               (2)  an insurance company that has paid a claim on the
  nonrepairable or salvage motor vehicle; or
               (3)  a governmental entity [; or
               [(4)  an out-of-state buyer].
         (b)  An owner [A person], other than a salvage vehicle dealer
  or an insurance company licensed to do business in this state, who
  acquired ownership of a nonrepairable or salvage motor vehicle that
  has not been issued a nonrepairable vehicle title, nonrepairable
  record of title, salvage vehicle title, salvage record of title, or
  a comparable ownership document issued by another state or
  jurisdiction shall, before selling the motor vehicle, surrender the
  properly assigned [certificate of] title for the motor vehicle to
  the department and apply to the department for the appropriate
  ownership document [:
               [(1)     a nonrepairable vehicle title if the vehicle is a
  nonrepairable motor vehicle; or
               [(2)     a salvage vehicle title if the vehicle is a
  salvage motor vehicle].
         (c)  If the department has issued a nonrepairable vehicle
  title, [or] salvage vehicle title, or nonrepairable or salvage
  record of title for the motor vehicle or another state or
  jurisdiction has issued a comparable out-of-state ownership
  document for the motor vehicle, a person may sell, transfer, or
  release a nonrepairable motor vehicle or salvage motor vehicle to
  any person.
         SECTION 40.040.  Section 501.097, Transportation Code, is
  amended by amending Subsections (a) and (c) and adding Subsection
  (c-1) to read as follows:
         (a)  An application for a nonrepairable vehicle title,
  nonrepairable record of title, [or] salvage vehicle title, or
  salvage record of title must:
               (1)  be made in [on] a manner [form] prescribed by the
  department and accompanied by a $8 application fee;
               (2)  include, in addition to any other information
  required by the department:
                     (A)  the name and current address of the owner;
  and
                     (B)  a description of the motor vehicle, including
  the make, style of body, model year, and vehicle identification
  number[; and
                     [(C)     a statement describing whether the motor
  vehicle:
                           [(i)     was the subject of a total loss claim
  paid by an insurance company under Section 501.092 or 501.093;
                           [(ii)     is a self-insured motor vehicle under
  Section 501.094;
                           [(iii)     is an export-only motor vehicle
  under Section 501.099; or
                           [(iv)     was sold, transferred, or released to
  the owner or former owner of the motor vehicle or a buyer at a casual
  sale]; and
               (3)  include the name and address of:
                     (A)  any currently recorded lienholder, if the
  motor vehicle is a nonrepairable motor vehicle; or
                     (B)  any currently recorded lienholder or a new
  lienholder, if the motor vehicle is a salvage motor vehicle.
         (c)  A printed nonrepairable vehicle title must state on its
  face that the motor vehicle:
               (1)  may not:
                     (A)  be repaired, rebuilt, or reconstructed;
                     (B)  be issued a regular [certificate of] title or
  registered in this state;
                     (C)  be operated on a public highway, in addition
  to any other requirement of law; and
               (2)  may only be used as a source for used parts or
  scrap metal.
         (c-1)  The department's titling system must include a remark
  that clearly identifies the vehicle as a salvage or nonrepairable
  motor vehicle.
         SECTION 40.041.  Sections 501.100(a), (b), (c), and (f),
  Transportation Code, are amended to read as follows:
         (a)  A vehicle for which a nonrepairable certificate of title
  issued prior to September 1, 2003, or for which a salvage vehicle
  title or salvage record of title has been issued may obtain [be
  issued] a regular [certificate of] title after the motor vehicle
  has been repaired, rebuilt, or reconstructed [by a person described
  by Section 501.104(a)] and, in addition to any other requirement of
  law, only if the application [is accompanied by a separate form
  that]:
               (1)  describes each major component part used to repair
  the motor vehicle;
               (2)  states the name of each person from whom the parts
  used in assembling the vehicle were obtained; and
               (3) [(2)]  shows the identification number required by
  federal law to be affixed to or inscribed on the part.
         (b)  On receipt of a complete application under this section
  accompanied by the [$13] fee for the [certificate of] title, the
  department shall issue the applicant a regular or record
  [certificate] of title [for the motor vehicle].
         (c)  A regular [certificate of] title issued under this
  section must [:
               [(1)]  describe or disclose the motor vehicle's former
  condition in a manner reasonably understandable to a potential
  purchaser of the motor vehicle [; and
               [(2)     bear on its face the words "REBUILT SALVAGE" in
  capital letters that:
                     [(A)  are red;
                     [(B)     are centered on and occupy at least 15
  percent of the face of the certificate of title; and
                     [(C)     do not prevent any other words on the title
  from being read or copied].
         (f)  The department may not issue a regular [certificate of]
  title for a motor vehicle based on a:
               (1)  nonrepairable vehicle title or comparable
  out-of-state ownership document;
               (2)  receipt issued under Section 501.1003(b)
  [501.096(b)]; or
               (3)  certificate of authority.
         SECTION 40.042.  Section 501.092, Transportation Code, is
  renumbered as Section 501.1001, Transportation Code, and amended to
  read as follows:
         Sec. 501.1001 [501.092].  [INSURANCE COMPANY TO SURRENDER
  CERTIFICATES OF TITLE TO CERTAIN] SALVAGE MOTOR VEHICLES OR
  NONREPAIRABLE MOTOR VEHICLES FOR INSURANCE COMPANIES OR
  SELF-INSURED PERSONS. (a) An insurance company that is licensed to
  conduct business in this state and that acquires, through payment
  of a claim, ownership or possession of a salvage motor vehicle or
  nonrepairable motor vehicle covered by a [certificate of] title
  issued by this state or a manufacturer's certificate of origin
  shall surrender a properly assigned title or manufacturer's
  certificate of origin to the department, in [on] a manner [form]
  prescribed by the department, except that not earlier than the 31st
  [46th] day after the date of payment of the claim the insurance
  company may surrender a [certificate of] title, in [on] a manner
  [form] prescribed by the department, and receive a salvage vehicle
  [certificate of] title or a nonrepairable vehicle [certificate of]
  title without obtaining a properly assigned [certificate of] title
  if the insurance company:
               (1)  has obtained the release of all liens on the motor
  vehicle;
               (2)  is unable to locate one or more owners of the motor
  vehicle; and
               (3)  has provided notice to the last known address in
  the department's records to each owner that has not been located:
                     (A)  by registered or certified mail, return
  receipt requested; or
                     (B)  if a notice sent under Paragraph (A) is
  returned unclaimed, by publication in a newspaper of general
  circulation in the area where the unclaimed mail notice was sent.
         (b)  For a salvage motor vehicle, the insurance company shall
  apply for a salvage vehicle title or salvage record of title. For a
  nonrepairable motor vehicle, the insurance company shall apply for
  a nonrepairable vehicle title or nonrepairable record of title.
         (c)  [An insurance company may not sell a motor vehicle to
  which this section applies unless the department has issued a
  salvage vehicle title or a nonrepairable vehicle title for the
  motor vehicle or a comparable ownership document has been issued by
  another state or jurisdiction for the motor vehicle.
         [(d)     An insurance company may sell a motor vehicle to which
  this section applies, or assign a salvage vehicle title or a
  nonrepairable vehicle title for the motor vehicle, only to a
  salvage vehicle dealer, an out-of-state buyer, a buyer in a casual
  sale at auction, or a metal recycler. If the motor vehicle is not a
  salvage motor vehicle or a nonrepairable motor vehicle, the
  insurance company is not required to surrender the regular
  certificate of title for the vehicle or to be issued a salvage
  vehicle title or a nonrepairable vehicle title for the motor
  vehicle.
         [(e)]  An insurance company or other person who acquires
  ownership of a motor vehicle other than a nonrepairable or salvage
  motor vehicle may voluntarily and on proper application obtain a
  salvage vehicle title, salvage record of title, [or a]
  nonrepairable vehicle title, or nonrepairable record of title for
  the vehicle.
         (d)  This section applies only to a motor vehicle in this
  state that is:
               (1)  a self-insured motor vehicle; and
               (2)  damaged to the extent it becomes a nonrepairable
  or salvage motor vehicle.
         (e)  The owner of a motor vehicle to which this section
  applies shall submit to the department before the 31st business day
  after the date of the damage, in a manner prescribed by the
  department, a statement that the motor vehicle was self-insured and
  damaged.
         (f)  When the owner submits a statement under Subsection (e),
  the owner shall surrender the ownership document and apply for a
  nonrepairable vehicle title, nonrepairable record of title,
  salvage vehicle title, or salvage record of title.
         SECTION 40.043.  Section 501.093, Transportation Code, is
  renumbered as Section 501.1002, Transportation Code, and amended to
  read as follows:
         Sec. 501.1002  [501.093].  OWNER-RETAINED [INSURANCE
  COMPANY REPORT ON CERTAIN] VEHICLES. (a) If an insurance company
  pays a claim on a nonrepairable motor vehicle or salvage motor
  vehicle and the insurance company does not acquire ownership of the
  motor vehicle, the insurance company shall:
               (1)  apply for a nonrepairable vehicle title,
  nonrepairable record of title, salvage vehicle title, or salvage
  record of title; or
               (2)  notify the owner of the information contained in:
                     (A)  Subsection (b); or
                     (B)  Section 501.09111; and
               (3)  submit to the department, before the 31st day
  after the date of the payment of the claim, in a manner [on the
  form] prescribed by the department, a report stating that the
  insurance company:
                     (A) [(1)]  has paid a claim on the motor vehicle;
  and
                     (B) [(2)]  has not acquired ownership of the motor
  vehicle.
         (b)  The owner of a motor vehicle to which this section
  applies may not operate or permit operation of the motor vehicle on
  a public highway or transfer ownership of the motor vehicle by sale
  or otherwise unless the department has issued a salvage vehicle
  title, salvage record of title, [or a] nonrepairable vehicle title,
  or nonrepairable record of title for the motor vehicle or a
  comparable ownership document has been issued by another state or
  jurisdiction for the motor vehicle.
         [(c)  Subsection (b) does not apply if:
               [(1)     the department has issued a nonrepairable vehicle
  title or salvage vehicle title for the motor vehicle; or
               [(2)     another state or jurisdiction has issued a
  comparable out-of-state ownership document for the motor vehicle.]
         SECTION 40.044.  Section 501.096, Transportation Code, is
  renumbered as Section 501.1003, Transportation Code, and amended to
  read as follows:
         Sec. 501.1003 [501.096].  [NONREPAIRABLE MOTOR VEHICLE OR]
  SALVAGE DEALER RESPONSIBILITIES [MOTOR VEHICLE DISMANTLED,
  SCRAPPED, OR DESTROYED]. (a) If a salvage vehicle dealer acquires
  ownership of a nonrepairable motor vehicle or salvage motor vehicle
  for the purpose of dismantling, scrapping, or destroying the motor
  vehicle, the dealer shall, before the 31st day after the date the
  dealer acquires the motor vehicle, submit to the department a
  report stating that the motor vehicle will be dismantled, scrapped,
  or destroyed. The dealer shall:
               (1)  make the report in a manner [on a form] prescribed
  by the department; and
               (2)  submit with the report a properly assigned
  manufacturer's certificate of origin, regular certificate of
  title, nonrepairable vehicle title, salvage vehicle title, or
  comparable out-of-state ownership document for the motor vehicle.
         (b)  After receiving the report and title or document, the
  department shall issue the salvage vehicle dealer a receipt for the
  manufacturer's certificate of origin, regular certificate of
  title, nonrepairable vehicle title, salvage vehicle title, or
  comparable out-of-state ownership document.
         (c)  The department shall adopt rules to notify the salvage
  [vehicle] dealer if the vehicle was not issued a printed title, but
  has a record of title in the department's titling system [shall:
               [(1)     keep on the business premises of the dealer,
  until the third anniversary of the date the report on the motor
  vehicle is submitted to the department, a record of the vehicle, its
  ownership, and its condition as dismantled, scrapped, or destroyed;
  and
               [(2)     present to the department, on the form prescribed
  by the department, evidence that the motor vehicle was dismantled,
  scrapped, or destroyed before the 61st day after the date the dealer
  completed the dismantling, scrapping, or destruction of the motor
  vehicle].
         SECTION 40.045.  Section 501.104, Transportation Code, is
  amended to read as follows:
         Sec. 501.104.  REBUILDER TO POSSESS TITLE OR OTHER
  DOCUMENTATION. (a) This section applies [only] to [:
               [(1)  a rebuilder licensed as a salvage vehicle dealer;
               [(2)]  a person engaged in repairing, rebuilding, or
  reconstructing motor vehicles [the business of a rebuilder],
  regardless of whether the person is licensed to engage in that
  business [; or
               [(3)     a person engaged in the casual repair,
  rebuilding, or reconstruction of fewer than three motor vehicles in
  the same 12-month period].
         (b)  A person described by Subsection (a) must possess:
               (1)  an acceptable [a regular certificate of title,
  nonrepairable vehicle title, salvage vehicle title, or comparable
  out-of-state] ownership document or proof of ownership for any
  motor vehicle that is:
                     (A)  owned by the person;
                     (B)  in the person's inventory; and
                     (C)  being offered for resale; or
               (2)  a contract entered into with the owner, a work
  order, or another document that shows the authority for the person
  to possess any motor vehicle that is:
                     (A)  owned by another person;
                     (B)  on the person's business or casual premises;
  and
                     (C)  being repaired, rebuilt, or reconstructed
  for the other person.
         SECTION 40.046.  Section 501.105, Transportation Code, is
  renumbered as Section 501.108, Transportation Code, and amended to
  read as follows:
         Sec. 501.108 [501.105].  RECORD RETENTION [OF RECORDS
  RELATING TO CERTAIN CASUAL SALES]. (a) Each licensed salvage
  vehicle dealer or insurance company that sells a nonrepairable
  motor vehicle or a salvage motor vehicle at a casual sale shall keep
  on the business premises of the dealer or the insurance company a
  list of all casual sales made during the preceding 36-month period
  that contains:
               (1)  the date of the sale;
               (2)  the name of the purchaser;
               (3)  the name of the jurisdiction that issued the
  identification document provided by the purchaser, as shown on the
  document; and
               (4)  the vehicle identification number.
         (b)  The salvage vehicle dealer shall keep on the business
  premises of the dealer, until the third anniversary of the date the
  report on the motor vehicle is submitted to the department, a record
  of the vehicle, its ownership, and its condition as dismantled,
  scrapped, or destroyed.
         SECTION 40.047.  Section 501.102, Transportation Code, is
  renumbered as Section 501.109, Transportation Code, and amended to
  read as follows:
         Sec. 501.109 [501.102].  OFFENSES. (a) A person commits an
  offense if the person:
               (1)  applies to the department for a regular
  [certificate of] title for a motor vehicle; and
               (2)  knows or reasonably should know that:
                     (A)  the vehicle is a nonrepairable motor vehicle
  that has been repaired, rebuilt, or reconstructed;
                     (B)  the vehicle identification number assigned
  to the motor vehicle belongs to a nonrepairable motor vehicle that
  has been repaired, rebuilt, or reconstructed;
                     (C)  the title issued to the motor vehicle belongs
  to a nonrepairable motor vehicle that has been repaired, rebuilt,
  or reconstructed; or
                     (D)  [the vehicle identification number assigned
  to the motor vehicle belongs to an export-only motor vehicle;
                     [(E)     the motor vehicle is an export-only motor
  vehicle; or
                     [(F)]  the motor vehicle is a nonrepairable motor
  vehicle or salvage motor vehicle for which a nonrepairable vehicle
  title, salvage vehicle title, or comparable ownership document
  issued by another state or jurisdiction has not been issued.
         (b)  A person commits an offense if the person knowingly
  sells, transfers, or releases a salvage motor vehicle in violation
  of this subchapter.
         (c)  A person commits an offense if the person knowingly
  fails or refuses to surrender a regular certificate of title after
  the person:
               (1)  receives a notice from an insurance company that
  the motor vehicle is a nonrepairable or salvage motor vehicle; or
               (2)  knows the vehicle has become a nonrepairable motor
  vehicle or salvage motor vehicle under Section 501.1001 [501.094].
         (d)  Except as provided by Subsection (e), an offense under
  this section is a Class C misdemeanor.
         (e)  If it is shown on the trial of an offense under this
  section that the defendant has been previously convicted of:
               (1)  one offense under this section, the offense is a
  Class B misdemeanor; or
               (2)  two or more offenses under this section, the
  offense is a state jail felony.
         SECTION 40.048.  Section 501.106, Transportation Code, is
  renumbered as Section 501.110, Transportation Code, and amended to
  read as follows:
         Sec. 501.110 [501.106].  ENFORCEMENT OF SUBCHAPTER. (a)
  This subchapter shall be enforced by the department and any other
  governmental or law enforcement entity, including the Department of
  Public Safety, and the personnel of the entity as provided by this
  subchapter.
         (b)  The department, an agent, officer, or employee of the
  department, or another person enforcing this subchapter is not
  liable to a person damaged or injured by an act or omission relating
  to the issuance of a [regular certificate of] title, nonrepairable
  vehicle title, nonrepairable record of title, [or] salvage vehicle
  title, or salvage record of title under this subchapter.
         SECTION 40.049.  Section 501.111(a), Transportation Code,
  is amended to read as follows:
         (a)  Except as provided by Subsection (b), a person may
  perfect a security interest in a motor vehicle that is the subject
  of a first or subsequent sale only by recording the security
  interest on the [certificate of] title as provided by this chapter.
         SECTION 40.050.  Sections 501.113(a) and (b),
  Transportation Code, are amended to read as follows:
         (a)  Recordation of a lien under this chapter is considered
  to occur when the department's titling system is updated or the
  department [county assessor-collector:
               [(1)     is presented with an application for a
  certificate of title that discloses the lien with tender of the
  filing fee; or
               [(2)]  accepts the application of title that discloses
  the lien with the filing fee.
         (b)  For purposes of Chapter 9, Business & Commerce Code, the
  time of recording a lien under this chapter is considered to be the
  time of filing the security interest, and on such recordation the
  recorded lienholder and assignees under Section 501.114 will obtain
  priority over the rights of a lien creditor as defined by Section
  9.102, Business & Commerce Code, for so long as the lien is recorded
  on the title.
         SECTION 40.051.  Section 501.114, Transportation Code, is
  amended to read as follows:
         Sec. 501.114.  ASSIGNMENT OF LIEN. (a) A lienholder may
  assign a lien recorded under Section 501.113 without making any
  filing or giving any notice under this chapter. The lien assigned
  remains valid and perfected and retains its priority, securing the
  obligation assigned to the assignee, against transferees from and
  creditors of the original debtor, including lien creditors, as
  defined by Section 9.102, Business & Commerce Code.
         (b)  An assignee or assignor may, but is not required to in
  order to retain the validity, perfection, and priority of the lien
  assigned, as evidence of the assignment of a lien recorded under
  Section 501.113 [by]:
               (1)  apply [applying] to the department [county
  assessor-collector] for the assignee to be named as lienholder on
  the certificate of title [assignment of the lien]; and
               (2)  notify [notifying] the debtor of the assignment.
         (c)  Failure [(b) A lienholder's failure] to make an
  application under Subsection (b) or to notify a debtor of an
  assignment does not create a cause of action against the recorded
  lienholder or the assignor or the assignee or affect the
  continuation of the perfected status of the assigned lien in favor
  of the assignee against transferees from and creditors of the
  original debtor, including lien creditors, as defined by Section
  9.102, Business & Commerce Code.
         (d) [(c)]  An application under Subsection (b) [(a)] must be
  acknowledged[:
               [(1)  signed] by the assignee [person] to whom the lien
  is assigned[; and
               [(2)  accompanied by:
                     [(A)  the applicable fee;
                     [(B)     a copy of the assignment agreement executed
  by the parties; and
                     [(C)     the certificate of title on which the lien
  to be assigned is recorded].
         (e) [(d)]  On receipt of the completed application and fee,
  the department may:
               (1)  [may] amend the department's records to substitute
  the assignee [subsequent lienholder] for the recorded [previous]
  lienholder; and
               (2)  [shall] issue a new [certificate of] title as
  provided by this chapter [Section 501.027].
         (f)  Regardless of whether application is made for the
  assignee to be named as lienholder on the title, the [(e) The
  issuance of a certificate of title under Subsection (d) is
  recordation of the assignment. The] time of the recordation of a
  lien assigned under this section is considered to be the time the
  lien was initially recorded under Section 501.113.
         (g)  Notwithstanding Subsections (a) through (f) and
  procedures that may be conducted under those subsections, the
  assignment of a lien does not affect the procedures applicable to
  the foreclosure of a worker's lien under Chapter 70, Property Code,
  or the rights of the holder of a worker's lien. Notice given to the
  last known lienholder of record, as provided by that chapter, is
  adequate to allow foreclosure under that chapter.
         (h)  Notwithstanding Subsections (a) through (f) and the
  procedures that may be conducted under those subsections, the
  assignment of a lien does not affect the procedures applicable to
  the release of a holder's lien under Section 348.408, Finance Code.
         SECTION 40.052.  Section 501.115, Transportation Code, is
  amended to read as follows:
         Sec. 501.115.  DISCHARGE OF LIEN. (a) When a debt or claim
  secured by a lien has been satisfied, the lienholder shall, within a
  reasonable time not to exceed the maximum time allowed by Section
  348.408, Finance Code, execute and deliver to the owner, or the
  owner's designee, a discharge of the lien in [on] a manner [form]
  prescribed by the department.
         (b)  The owner may submit [present] the discharge and
  [certificate of] title to the department for [county
  assessor-collector with an application for a new certificate of
  title and the department shall issue] a new [certificate of] title.
         SECTION 40.053.  Section 501.116, Transportation Code, is
  amended to read as follows:
         Sec. 501.116.  CANCELLATION OF DISCHARGED LIEN. The
  department may cancel a discharged lien that has been recorded on a
  [certificate of] title for 10 [six] years or more if the recorded
  lienholder:
               (1)  does not exist; or
               (2)  cannot be located for the owner to obtain a release
  of the lien.
         SECTION 40.054.  Sections 501.134(a), (b), (c), (d), (g),
  and (i), Transportation Code, are amended to read as follows:
         (a)  If a printed [certificate of] title is lost or
  destroyed, the owner or lienholder disclosed on the title
  [certificate] may obtain, in the manner provided by this section
  and department rule, a certified copy of the lost or destroyed
  [certificate of] title directly from the department by applying in
  [on] a manner [form] prescribed by the department and paying a fee
  of $2. A fee collected under this subsection shall be deposited to
  the credit of the state highway fund and may be spent only as
  provided by Section 501.138.
         (b)  If a lien is disclosed on a [certificate of] title, the
  department may issue a certified copy of the original [certificate
  of] title only to the first lienholder or the lienholder's verified
  agent.
         (c)  The department must plainly mark "certified copy" on the
  face of a certified copy issued under this section [, and each
  subsequent certificate issued for the motor vehicle until the
  vehicle is transferred]. A subsequent purchaser or lienholder of
  the vehicle only acquires the rights, title, or interest in the
  vehicle held by the holder of the certified copy.
         (d)  A purchaser or lienholder of a motor vehicle having a
  certified copy issued under this section may at the time of the
  purchase or establishment of the lien require that the seller or
  owner indemnify the purchaser or lienholder and all subsequent
  purchasers of the vehicle against any loss the person may suffer
  because of a claim presented on the original [certificate of]
  title.
         (g)  The department may issue a certified copy of a
  [certificate of] title [before the fourth business day after the
  date application is made] only if the applicant:
               (1)  is the registered owner of the vehicle, the holder
  of a recorded lien against the vehicle, or a verified agent of the
  owner or lienholder; and
               (2)  submits personal identification, including a
  photograph, issued by an agency of this state or the United States.
         (i)  The department may establish acceptable identification
  requirements for [If] an applicant for a certified copy of a
  certificate of title who is not a person [other than a person]
  described by Subsection (g)(1)[, the department may issue a
  certified copy of the certificate of title only by mail].
         SECTION 40.055.  Section 501.135(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall:
               (1)  make a record of each report to the department that
  a motor vehicle registered in this state has been stolen or
  concealed in violation of Section 32.33, Penal Code; and
               (2)  note the fact of the report in the department's
  records [of the vehicle's certificate of title].
         SECTION 40.056.  Sections 501.138(a), (b), and (b-1),
  Transportation Code, are amended to read as follows:
         (a)  An applicant for a [certificate of] title, other than
  the state or a political subdivision of the state, must pay [the
  county assessor-collector] a fee of:
               (1)  $33 if the applicant's residence is a county
  located within a nonattainment area as defined under Section 107(d)
  of the federal Clean Air Act (42 U.S.C. Section 7407), as amended,
  or is an affected county, as defined by Section 386.001, Health and
  Safety Code; or
               (2)  $28 if the applicant's residence is any other
  county.
         (b)  The fees [county assessor-collector] shall be
  distributed as follows [send]:
               (1)  $5 of the fee to the county treasurer for deposit
  in the officers' salary fund;
               (2)  $8 of the fee to the department:
                     (A)  together with the application within the time
  prescribed by Section 501.023; or
                     (B)  if the fee is deposited in an
  interest-bearing account or certificate in the county depository or
  invested in an investment authorized by Subchapter A, Chapter 2256,
  Government Code, not later than the 35th day after the date on which
  the fee is received; and
               (3)  the following amount to the comptroller at the
  time and in the manner prescribed by the comptroller:
                     (A)  $20 of the fee if the applicant's residence
  is a county located within a nonattainment area as defined under
  Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
  7407), as amended, or is an affected county, as defined by Section
  386.001, Health and Safety Code; or
                     (B)  $15 of the fee if the applicant's residence
  is any other county.
         (b-1)  Fees collected under Subsection (b) to be sent to the
  comptroller shall be deposited [as follows:
               [(1)     before September 1, 2008, to the credit of the
  Texas emissions reduction plan fund; and
               [(2)  on or after September 1, 2008,] to the credit of
  the Texas Mobility Fund, except that $5 of each fee imposed under
  Subsection (a)(1) and deposited on or after September 1, 2008, and
  before September 1, 2015, shall be deposited to the credit of the
  Texas emissions reduction plan fund.
         SECTION 40.057.  Section 520.031, Transportation Code, as
  amended by Chapters 836 (H.B. 1743) and 1423 (H.B. 2409), Acts of
  the 76th Legislature, Regular Session, 1999, is transferred to
  Subchapter H, Chapter 501, Transportation Code, renumbered as
  Section 501.145, Transportation Code, and reenacted and amended to
  read as follows:
         Sec. 501.145 [520.031].  FILING BY PURCHASER [TRANSFEREE];
  APPLICATION FOR TRANSFER OF TITLE [AND REGISTRATION]. (a) Not
  later than the 30th [20th working] day after the date of assignment
  on [receiving] the documents [under Section 520.022 or 520.0225],
  the purchaser [transferee] of the used motor vehicle shall file
  with the county assessor-collector:
               (1)  [the license receipt and] the certificate of title
  or other evidence of title; or
               (2)  if appropriate, a document described by Section
  502.457 [520.0225(b)(1) or (2)] and the [certificate of] title or
  other evidence of ownership [title].
         (b)  The filing under Subsection (a) is an application for
  transfer of title as required under this chapter [Chapter 501] and
  [, if the license receipt is filed,] an application for transfer of
  the registration of the motor vehicle.
         (c)  [In this section, "working day" means any day other than
  a Saturday, a Sunday, or a holiday on which county offices are
  closed.
         [(d)]  Notwithstanding Subsection (a), if the purchaser
  [transferee] is a member of the armed forces of the United States, a
  member of the Texas National Guard or of the National Guard of
  another state serving on active duty under an order of the president
  of the United States, or a member of a reserve component of the
  armed forces of the United States serving on active duty under an
  order of the president of the United States, the documents
  described by Subsection (a) must be filed with the county
  assessor-collector not later than the 60th [working] day after the
  date of assignment of ownership [their receipt by the transferee].
         SECTION 40.058.  Section 520.023, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  renumbered as Section 501.146, Transportation Code, and amended to
  read as follows:
         Sec. 501.146 [520.023].  [POWERS AND DUTIES OF DEPARTMENT ON
  TRANSFER OF USED] VEHICLE TRANSFER NOTIFICATION. (a) On receipt of
  a written notice of transfer from the seller [transferor] of a motor
  vehicle, the department shall indicate the transfer on the motor
  vehicle records maintained by the department.  As an alternative to
  a written notice of transfer, the department shall establish
  procedures that permit the seller [transferor] of a motor vehicle
  to electronically submit a notice of transfer to the department
  through the department's Internet website.  A notice of transfer
  provided through the department's Internet website is not required
  to bear the signature of the seller [transferor] or include the date
  of signing.
         (b)  [The department may design the written notice of
  transfer to be part of the certificate of title for the vehicle.]
  The notice of transfer [form] shall be provided by the department
  and must include a place for the seller [transferor] to state:
               (1)  a complete description of the vehicle as
  prescribed by the department [identification number of the
  vehicle];
               (2)  [the number of the license plate issued to the
  vehicle, if any;
               [(3)]  the full name and address of the seller
  [transferor];
               (3) [(4)]  the full name and address of the purchaser
  [transferee];
               (4) [(5)]  the date the seller [transferor] delivered
  possession of the vehicle to the purchaser [transferee];
               (5) [(6)]  the signature of the seller [transferor];
  and
               (6) [(7)]  the date the seller [transferor] signed the
  form.
         (c)  This subsection applies only if the department receives
  notice under Subsection (a) before the 30th day after the date the
  seller [transferor] delivered possession of the vehicle to the
  purchaser [transferee].  After the date of the transfer of the
  vehicle shown on the records of the department, the purchaser
  [transferee] of the vehicle shown on the records is rebuttably
  presumed to be:
               (1)  the owner of the vehicle; and
               (2)  subject to civil and criminal liability arising
  out of the use, operation, or abandonment of the vehicle, to the
  extent that ownership of the vehicle subjects the owner of the
  vehicle to criminal or civil liability under another provision of
  law.
         (d)  The department may adopt[:
               [(1)]  rules to implement this section [; and
               [(2)     a fee for filing a notice of transfer under this
  section in an amount not to exceed the lesser of the actual cost to
  the department of implementing this section or $5].
         (e)  This section does not impose or establish civil or
  criminal liability on the owner of a motor vehicle who transfers
  ownership of the vehicle but does not disclose the transfer to the
  department.
         (f)  [This section does not require the department to issue a
  certificate of title to a person shown on a notice of transfer as
  the transferee of a motor vehicle.] The department may not issue a
  [certificate of] title or register [for] the vehicle until the
  purchaser [transferee] applies for a title to the county
  assessor-collector as provided by this chapter [Chapter 501].
         SECTION 40.059.  Section 520.032, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  renumbered as Section 501.147, Transportation Code, and amended to
  read as follows:
         Sec. 501.147 [520.032].  TITLE TRANSFER [FEE]; LATE FEE.
  (a) [The transferee of a used motor vehicle shall pay, in addition
  to any fee required under Chapter 501 for the transfer of title, a
  transfer fee of $2.50 for the transfer of the registration of the
  motor vehicle.
         [(b)]  If the purchaser [transferee] does not file the
  application for the transfer of title during the period provided by
  Section 501.145 [520.031], the purchaser [transferee] is liable for
  a late fee to be paid to the county assessor-collector when the
  application is filed.  If the seller [transferee] holds a general
  distinguishing number issued under Chapter 503 of this code or
  Chapter 2301, Occupations Code, the seller is liable for the late
  fee in the amount of [the late fee is] $10.  If the seller
  [transferee] does not hold a general distinguishing number, subject
  to Subsection (b) [(b-1)] the amount of the late fee is $25.
         (b) [(b-1)]  If the application is filed after the 60th [31st
  working] day after the date the purchaser was assigned ownership of
  [transferee received] the documents under Section 501.0721
  [520.022], the late fee imposed under Subsection (a) [(b)] accrues
  an additional penalty in the amount of $25 for each subsequent
  30-day period, or portion of a 30-day period, in which the
  application is not filed.
         (c)  The county assessor-collector and the surety on the
  county assessor-collector's bond are liable for the late fee if the
  county assessor-collector does not collect the late fee.
         (d)  Subsections (a) and (b) [and (b-1)] do not apply if the
  motor vehicle is eligible to be issued:
               (1)  classic vehicle license plates under Section
  504.501; or
               (2)  antique vehicle license plates under Section
  504.502.
         SECTION 40.060.  Section 520.033, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  renumbered as Section 501.148, Transportation Code, and amended to
  read as follows:
         Sec. 501.148 [520.033].  ALLOCATION OF FEES. (a) The
  county assessor-collector may retain as commission for services
  provided under this subchapter [half of each transfer fee
  collected,] half of each late fee [,] and half of each additional
  penalty collected under Section 501.147 [520.032].
         (b)  The county assessor-collector shall report and remit
  the balance of the fees collected to the department on Monday of
  each week as other [registration] fees are required to be reported
  and remitted.
         (c)  Of each late fee collected from a person who does not
  hold a general distinguishing number by [that] the department
  [receives] under Subsection (b), $10 may be used only to fund a
  statewide public awareness campaign designed to inform and educate
  the public about the provisions of this chapter.
         SECTION 40.061.  Section 501.152(b), Transportation Code,
  is amended to read as follows:
         (b)  It is not a violation of this section for the beneficial
  owner of a vehicle to sell or offer to sell a vehicle without having
  possession of the certificate of title to the vehicle if the sole
  reason he or she does not have possession of the certificate of
  title is that the title is in the possession of a lienholder who has
  not complied with the terms of Section 501.115(a) [of this code].
         SECTION 40.062.  Section 501.153, Transportation Code, is
  amended to read as follows:
         Sec. 501.153.  APPLICATION FOR TITLE FOR STOLEN OR CONCEALED
  VEHICLE. A person commits an offense if the person applies for a
  [certificate of] title for a motor vehicle that the person knows is
  stolen or concealed in violation of Section 32.33, Penal Code.
         SECTION 40.063.  Section 501.154, Transportation Code, is
  amended to read as follows:
         Sec. 501.154.  ALTERATION OF CERTIFICATE OR RECEIPT. A
  person commits an offense if the person alters a manufacturer's [or
  importer's] certificate, a title receipt, or a certificate of
  title.
         SECTION 40.064.  Section 501.155(a), Transportation Code,
  is amended to read as follows:
         (a)  A person commits an offense if the person knowingly
  provides false or incorrect information or without legal authority
  signs the name of another person on:
               (1)  an application for a [certificate of] title;
               (2)  an application for a certified copy of an original
  [certificate of] title;
               (3)  an assignment of title for a motor vehicle;
               (4)  a discharge of a lien on a title for a motor
  vehicle; or
               (5)  any other document required by the department or
  necessary to the transfer of ownership of a motor vehicle.
         SECTION 40.065.  The heading to Section 501.158,
  Transportation Code, is amended to read as follows:
         Sec. 501.158.  SEIZURE OF STOLEN VEHICLE OR VEHICLE WITH
  ALTERED VEHICLE IDENTIFICATION [SERIAL] NUMBER.
         SECTION 40.066.  Section 520.035, Transportation Code, is
  transferred to Subchapter H, Chapter 501, Transportation Code,
  renumbered as Section 501.161, Transportation Code, and amended to
  read as follows:
         Sec. 501.161 [520.035].  EXECUTION OF TRANSFER DOCUMENTS;
  PENALTY. (a) A person who transfers a motor vehicle in this state
  shall complete [execute] in full and date as of the date of the
  transfer all documents relating to the transfer of registration or
  [certificate of] title. A person who transfers a vehicle commits an
  offense if the person fails to execute the documents in full.
         (b)  A person commits an offense if the person:
               (1)  accepts a document described by Subsection (a)
  that does not contain all of the required information; or
               (2)  alters or mutilates such a document.
         (c)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $50 and not more than $200.
         SECTION 40.067.  Subchapter H, Chapter 501, Transportation
  Code, is amended by adding Sections 501.162 and 501.163 to read as
  follows:
         Sec. 501.162.  MOTOR NUMBER REQUIRED FOR REGISTRATION;
  PENALTY. A person commits an offense if the person violates Section
  501.0331. An offense under this section is a misdemeanor
  punishable by a fine of not less than $50 and not more than $100.
         Sec. 501.163.  APPLICATION FOR MOTOR NUMBER RECORD; PENALTY.
  A person who fails to comply with Section 501.0332 commits an
  offense. An offense under this section is a misdemeanor punishable
  by a fine of not less than $10 and not more than $100.
         SECTION 40.068.  Chapter 501, Transportation Code, is
  amended by adding Subchapter I to read as follows:
  SUBCHAPTER I. ELECTRONIC TITLING SYSTEM
         Sec. 501.171.  APPLICATION OF SUBCHAPTER. This subchapter
  applies only if the department implements a titling system under
  Section 501.173.
         Sec. 501.172.  DEFINITIONS. In this subchapter:
               (1)  "Document" means information that is inscribed on
  a tangible medium or that is stored in an electronic or other medium
  and is retrievable in perceivable form.
               (2)  "Electronic" means relating to technology having
  electrical, digital, magnetic, wireless, optical, electromagnetic,
  or similar capabilities.
               (3)  "Electronic document" means a document that is in
  an electronic form.
               (4)  "Electronic signature" means an electronic sound,
  symbol, or process attached to or logically associated with a
  document and executed or adopted by a person with the intent to sign
  the document.
               (5)  "Paper document" means a document that is in
  printed form.
         Sec. 501.173.  ELECTRONIC TITLING SYSTEM. (a) The
  department by rule may implement an electronic titling system.
         (b)  A record of title maintained electronically by the
  department in the titling system is the official record of vehicle
  ownership unless the owner requests that the department issue a
  printed title.
         Sec. 501.174.  VALIDITY OF ELECTRONIC DOCUMENTS. (a) If
  this chapter requires that a document be an original, be on paper or
  another tangible medium, or be in writing, the requirement is met by
  an electronic document that complies with this subchapter.
         (b)  If a law requires that a document be signed, the
  requirement is satisfied by an electronic signature.
         (c)  A requirement that a document or a signature associated
  with a document be notarized, acknowledged, verified, witnessed, or
  made under oath is satisfied if the electronic signature of the
  person authorized to perform that act, and all other information
  required to be included, is attached to or logically associated
  with the document or signature. A physical or electronic image of a
  stamp, impression, or seal is not required to accompany an
  electronic signature.
         Sec. 501.175.  RECORDING OF DOCUMENTS. (a) Under the
  titling system, the department may:
               (1)  receive, index, store, archive, and transmit
  electronic documents;
               (2)  provide for access to, and for search and
  retrieval of, documents and information by electronic means; and
               (3)  convert into electronic form:
                     (A)  paper documents that it accepts for the
  titling of a motor vehicle; and
                     (B)  information recorded and documents that were
  accepted for the titling of a motor vehicle before the titling
  system was implemented.
         (b)  The department shall continue to accept paper documents
  after the titling system is implemented.
         Sec. 501.176.  PAYMENT OF FEES BY ELECTRONIC FUNDS TRANSFER
  OR CREDIT CARD. (a) The department may accept payment by
  electronic funds transfer, credit card, or debit card of any title
  or registration fee that the department is required or authorized
  to collect under this chapter.
         (b)  The department may collect a fee for processing a title
  or registration payment by electronic funds transfer, credit card,
  or debit card. The amount of the fee must be reasonably related to
  the expense incurred by the department in processing the payment by
  electronic funds transfer, credit card, or debit card and may not be
  more than five percent of the amount of the registration and titling
  fee being paid.
         (c)  In addition to the fee authorized by Subsection (b), the
  department may collect from a person making payment by electronic
  funds transfer, credit card, or debit card an amount equal to the
  amount of any registration and titling transaction fee charged to
  the department by a vendor providing services in connection with
  payments made by electronic funds transfer, credit card, or debit
  card. The limitation prescribed by Subsection (b) on the amount of
  a fee does not apply to a fee collected under this subsection.
         (d)  Online electronic commerce must be processed in
  accordance with Chapter 2054, Government Code.
         Sec. 501.177.  SERVICE CHARGE. If, for any reason, the
  payment of a fee under this chapter by electronic funds transfer,
  credit card, or debit card is not honored by the funding
  institution, or by the electronic funds transfer, credit card, or
  debit card company on which the funds are drawn, the department may
  collect from the person who owes the fee being collected a
  registration and titling service charge that is for the collection
  of that original amount and is in addition to the original fee. The
  amount of the service charge must be reasonably related to the
  expense incurred by the department in collecting the original
  amount.
         Sec. 501.178.  DISPOSITION OF FEES. All fees collected
  under this subchapter shall be deposited to the credit of the state
  highway fund.
         Sec. 501.179.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
  AND NATIONAL COMMERCE ACT. This subchapter modifies, limits, and
  supersedes the federal Electronic Signatures in Global and National
  Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify,
  limit, or supersede Section 101(c) of that Act (15 U.S.C. Section
  7001(c)) or authorize electronic delivery of any of the notices
  described in Section 103(b) of that Act (15 U.S.C. Section
  7003(b)).
         SECTION 40.069.  Section 502.001, Transportation Code, is
  amended to read as follows:
         Sec. 502.001.  DEFINITIONS. In this chapter:
               (1)  "All-terrain vehicle" means a motor vehicle that
  is:
                     (A)  equipped with a saddle, bench, or bucket
  seats for the use of:
                           (i)  the rider; and
                           (ii)  a passenger, if the motor vehicle is
  designed by the manufacturer to transport a passenger;
                     (B)  designed to propel itself with three or more
  tires in contact with the ground;
                     (C)  designed by the manufacturer for off-highway
  use; and
                     (D)  not designed by the manufacturer primarily
  for farming or lawn care.
               (2)  "Apportioned license plate" means a license plate
  issued in lieu of a truck license plate or combination license plate
  to a motor carrier in this state who proportionally registers a
  vehicle owned by the carrier in one or more other states.
               (3)  "Combination license plate" means a license plate
  issued for a truck or truck-tractor that is used or intended to be
  used in combination with a semitrailer that has a gross weight of
  more than 6,000 pounds.
               (4)  "Combined gross weight" means the empty weight of
  the truck-tractor or commercial motor vehicle combined with the
  empty weight of the heaviest semitrailer used or to be used in
  combination with the truck-tractor or commercial motor vehicle plus
  the heaviest net load to be carried on the combination during the
  registration year.
               (4-a)  "Commercial fleet" has the meaning assigned by
  Section 501.002.
               (5)  "Commercial motor vehicle" means a commercial
  motor vehicle as defined by Section 644.001 [, other than a
  motorcycle, designed or used primarily to transport property. The
  term includes a passenger car reconstructed and used primarily for
  delivery purposes. The term does not include a passenger car used
  to deliver the United States mail].
               (6)  "Construction machinery" means a vehicle that:
                     (A)  is used for construction;
                     (B)  is built from the ground up;
                     (C)  is not mounted or affixed to another vehicle
  such as a trailer;
                     (D)  was originally and permanently designed as
  machinery;
                     (E)  was not in any way originally designed to
  transport persons or property; and
                     (F)  does not carry a load, including fuel.
               (7)  "Credit card" has the meaning assigned by Section
  501.002.
               (8)  "Debit card" has the meaning assigned by Section
  501.002.
               (9) [(3)]  "Department" means the Texas Department of
  Transportation.
               (10)  "Electric bicycle" has the meaning assigned by
  Section 541.201.
               (11)  "Electric personal assistive mobility device"
  has the meaning assigned by Section 551.201.
               (12)  "Empty weight" means the unladen weight of the
  truck-tractor or commercial motor vehicle and semitrailer
  combination fully equipped, as certified by a public weigher or
  license and weight inspector of the Department of Public Safety.
               (13) [(4)]  "Farm trailer" or "farm semitrailer" means
  a vehicle [semitrailer] designed and used primarily as a farm
  vehicle.
               (14) [(5)]  "Farm tractor" has the meaning assigned by
  Section 541.201 [means a motor vehicle designed and used primarily
  as a farm implement for drawing other implements of husbandry].
               (15)  "Forestry vehicle" [(6) "Farm trailer"] means a
  vehicle [trailer designed and] used exclusively for transporting
  forest products in their natural state, including logs, debarked
  logs, untreated ties, stave bolts, plywood bolts, pulpwood billets,
  wood chips, stumps, sawdust, moss, bark, and wood shavings, and
  property used in production of those products [primarily as a farm
  vehicle].
               (16) [(7)]  "Golf cart" means a motor vehicle designed
  by the manufacturer primarily for transporting persons on a golf
  course.
               (17)  "Gross vehicle weight" has the meaning assigned
  by Section 541.401.
               (18) [(8)]  "Implements of husbandry" has the meaning
  assigned by Section 541.201 [means farm implements, machinery, and
  tools as used in tilling the soil, including self-propelled
  machinery specifically designed or adapted for applying plant food
  materials or agricultural chemicals but not specifically designed
  or adapted for the sole purpose of transporting the materials or
  chemicals. The term does not include a passenger car or truck].
               (19) [(9)]  "Light truck" has the meaning assigned by
  Section 541.201 [means a commercial motor vehicle that has a
  manufacturer's rated carrying capacity of one ton or less].
               (20) [(10)]  "Moped" has the meaning assigned by
  Section 541.201.
               (21) [(11)]  "Motor bus" includes every vehicle used to
  transport persons on the public highways for compensation, other
  than:
                     (A)  a vehicle operated by muscular power; or
                     (B)  a municipal bus.
               (22) [(12)]  "Motorcycle" has the meaning assigned by
  Section 541.201 [means a motor vehicle designed to propel itself
  with not more than three wheels in contact with the ground. The
  term does not include a tractor].
               (23) [(13)]  "Motor vehicle" means a vehicle that is
  self-propelled.
               (24)  "Motorized mobility device" has the meaning
  assigned by Section 542.009.
               (25) [(14)]  "Municipal bus" includes every vehicle,
  other than a passenger car, used to transport persons for
  compensation exclusively within the limits of a municipality or a
  suburban addition to the municipality.
               (26)  "Net carrying capacity" is the heaviest net load
  to be carried on the vehicle, but not less than the manufacturer's
  rated carrying capacity.
               (27)  "Oil well servicing, cleanout, or drilling
  machinery":
                     (A)  has the meaning assigned by Section 623.149;
  or
                     (B)  means:
                           (i)  a mobile crane that is an unladen,
  self-propelled vehicle constructed as a machine and used solely to
  raise, shift, or lower heavy weights by means of a projecting,
  swinging mast with an engine for power on a chassis permanently
  constructed or assembled for such purpose; and
                           (ii)  for which the owner has secured a
  permit from the department under Section 623.142.
               (28) [(15)]  "Operate temporarily on the highways"
  means to travel between:
                     (A)  different farms;
                     (B)  a place of supply or storage and a farm; or
                     (C)  an owner's farm and the place at which the
  owner's farm produce is prepared for market or is marketed.
               (29) [(16)]  "Owner" means a person who:
                     (A)  holds the legal title of a vehicle;
                     (B)  has the legal right of possession of a
  vehicle; or
                     (C)  has the legal right of control of a vehicle.
               (30) [(17)]  "Passenger car" has the meaning assigned
  by Section 541.201 [means a motor vehicle, other than a motorcycle,
  golf cart, light truck, or bus, designed or used primarily for the
  transportation of persons].
               (31)  "Power sweeper" means an implement, with or
  without motive power, designed for the removal by a broom, vacuum,
  or regenerative air system of debris, dirt, gravel, litter, or sand
  from asphaltic concrete or cement concrete surfaces, including
  surfaces of parking lots, roads, streets, highways, and warehouse
  floors. The term includes a vehicle on which the implement is
  permanently mounted if the vehicle is used only as a power sweeper.
               (32)  "Private bus" means a bus that:
                     (A)  is not operated for hire; and
                     (B)  is not classified as a municipal bus or a
  motor bus.
               (33) [(18)]  "Public highway" includes a road, street,
  way, thoroughfare, or bridge:
                     (A)  that is in this state;
                     (B)  that is for the use of vehicles;
                     (C)  that is not privately owned or controlled;
  and
                     (D)  over which the state has legislative
  jurisdiction under its police power.
               (34) [(19)]  "Public property" means property owned or
  leased by this state or a political subdivision of this state.
               (35) [(20)]  "Road tractor" means a vehicle designed
  for the purpose of mowing the right-of-way of a public highway or a
  motor vehicle designed or used for drawing another vehicle or a load
  and not constructed to carry:
                     (A)  an independent load; or
                     (B)  a part of the weight of the vehicle and load
  to be drawn.
               (36) [(21)]  "Semitrailer" means a vehicle designed or
  used with a motor vehicle so that part of the weight of the vehicle
  and its load rests on or is carried by another vehicle.
               (37)  "Token trailer" means a semitrailer that:
                     (A)  has a gross weight of more than 6,000 pounds;
  and
                     (B)  is operated in combination with a truck or a
  truck-tractor that has been issued:
                           (i)  an apportioned license plate;
                           (ii)  a combination license plate; or
                           (iii)  a forestry vehicle license plate.
               (38)  "Tow truck" means a motor vehicle adapted or used
  to tow, winch, or otherwise move another motor vehicle.
               (39) [(22)]  "Trailer" means a vehicle that:
                     (A)  is designed or used to carry a load wholly on
  its own structure; and
                     (B)  is drawn or designed to be drawn by a motor
  vehicle.
               (40)  "Travel trailer" has the meaning assigned by
  Section 501.002.
               (41) [(23)]  "Truck-tractor" means a motor vehicle:
                     (A)  designed and used primarily for drawing
  another vehicle; and
                     (B)  not constructed to carry a load other than a
  part of the weight of the vehicle and load to be drawn.
               (42) [(24)]  "Vehicle" means a device in or by which a
  person or property is or may be transported or drawn on a public
  highway, other than a device used exclusively on stationary rails
  or tracks.
         SECTION 40.070.  Section 502.0021, Transportation Code, is
  amended to read as follows:
         Sec. 502.0021.  RULES AND FORMS. (a) The department may
  adopt rules to administer this chapter.
         (b)  The department shall post on the Internet or[:
               [(1)     prescribe forms determined by the department to
  be necessary for the administration of this chapter; and
               [(2)]  provide each county assessor-collector with a
  sufficient [an adequate] supply of any [each form] necessary forms
  [for the performance of a duty under this chapter by the
  assessor-collector].
         SECTION 40.071.  Section 502.052, Transportation Code, is
  transferred to Subchapter A, Chapter 502, Transportation Code,
  renumbered as Section 502.00211, Transportation Code, and amended
  to read as follows:
         Sec. 502.00211  [502.052].  DESIGN OF [LICENSE PLATES AND]
  REGISTRATION INSIGNIA [; REFLECTORIZED MATERIAL]. [(a)] The
  department shall prepare the designs and specifications [of license
  plates and devices selected by the Texas Transportation Commission]
  to be used as the registration insignia.
         [(b)     The department shall design each license plate to
  include a design at least one-half inch wide that represents in
  silhouette the shape of Texas and that appears between letters and
  numerals. The department may omit the silhouette of Texas from
  specially designed license plates.
         [(c)     To promote highway safety, each license plate shall be
  made with a reflectorized material that provides effective and
  dependable brightness for the period for which the plate is issued.
  The purchase of reflectorized material shall be submitted to the
  comptroller for approval.]
         SECTION 40.072.  Section 502.0022, Transportation Code, is
  amended to read as follows:
         Sec. 502.0022.  CONSOLIDATED REGISTRATION OF [FLEET]
  VEHICLES. (a) The department shall develop and implement a system
  of registration so that an owner of more than one motor vehicle or
  trailer that is subject to registration under this chapter [a fleet
  of motor vehicles] may consolidate the registration of the motor
  vehicles [in the fleet] as an alternative to the separate
  registration of each motor vehicle [in the fleet]. The owner may
  designate an initial or a renewal registration period for a vehicle
  or trailer so that the registration period expires on the same date
  as the registration period for another vehicle or trailer
  previously registered by that owner.
         (b)  A system of consolidated registration under this
  section must allow the owner of the [a fleet of] motor vehicles to
  register:
               (1)  all [an entire fleet of] motor vehicles in the
  county of the owner's residence or principal place of business; or
               (2)  [those vehicles in a fleet of] vehicles that are
  operated most regularly in the same county by registering the
  vehicles in that county.
         (c)  With the consent of the [The] department, the
  registration shall be issued in accordance with Section 502.044 [by
  rule shall define "fleet" for purposes of this section.
         [(d)     The department may adopt rules to administer this
  section].
         SECTION 40.073.  (a) Subchapter A, Chapter 502,
  Transportation Code, is amended by adding Section 502.0023 to read
  as follows:
         Sec. 502.0023.  EXTENDED REGISTRATION OF COMMERCIAL FLEET
  VEHICLES. (a) The department shall develop and implement a system
  of registration to allow an owner of a commercial fleet to register
  the motor vehicles in the commercial fleet for an extended
  registration period of not less than one year or more than eight
  years. The owner may select the number of years for registration
  under this section within that range and register the commercial
  fleet for that period. Payment for the entire registration period
  selected is due at the time of registration.
         (b)  In addition to the registration fees prescribed by
  Subchapter D, an owner registering a commercial fleet under this
  section shall pay:
               (1)  an annual commercial fleet registration fee of $10
  per motor vehicle; and
               (2)  a one-time license plate manufacturing fee of
  $1.50 for each issued motor vehicle license plate.
         (c)  A license plate issued under this section may, at the
  registered owner's option, include on the legend the name or logo of
  the business entity that owns the vehicle. The license plates shall
  conform in all respects to the provisions of this chapter, except as
  specified in this section.
         (d)  For a commercial fleet registered under this section,
  payment of all registration license taxes and fees under this
  chapter must be paid in advance for the extended registration
  period selected under Subsection (a). On payment of all
  registration license taxes and fees, no annual validation window
  insignia is required for the entire period paid for in advance. A
  registration card must be issued for the period elected only for
  vehicles that exceed 10,000 pounds in weight.
         (e)  Failure to comply with this section may result in
  suspension or termination from the commercial fleet program.
         (f)  The department shall adopt rules to implement this
  section.
         (g)  The department and the counties in their budgeting
  processes shall consider any temporary increases and resulting
  decreases in revenue that will result from the use of the process
  provided by this section.
         (b)  The Texas Department of Transportation shall adopt the
  rules and establish the system required under Section 502.0023,
  Transportation Code, as added by this section, not later than
  September 1, 2010.
         (c)  This section takes effect September 1, 2009.
         SECTION 40.074.  Section 502.185, Transportation Code, is
  transferred to Subchapter A, Chapter 502, Transportation Code,
  renumbered as Section 502.010, Transportation Code, and amended to
  read as follows:
         Sec. 502.010  [502.185].  COUNTY SCOFFLAW [REFUSAL TO
  REGISTER VEHICLE IN CERTAIN COUNTIES]. (a) A county
  assessor-collector or the department may refuse to register a motor
  vehicle if the assessor-collector or the department receives
  information that the owner of the vehicle owes the county money for
  a fine, fee, or tax that is past due.
         (b)  A county may contract with the department to provide
  information to the department necessary to make a determination
  under Subsection (a).
         (c)  A county that has a contract under Subsection (b) shall
  notify the department regarding a person for whom the county
  assessor-collector or the department has refused to register a
  motor vehicle on:
               (1)  the person's payment or other means of discharge of
  the past due fine, fee, or tax; or
               (2)  perfection of an appeal of the case contesting
  payment of the fine, fee, or tax.
         (d)  After notice is received under Subsection (c), the
  county assessor-collector or the department may not refuse to
  register the motor vehicle under Subsection (a).
         (e)  A contract under Subsection (b) must be entered into in
  accordance with Chapter 791, Government Code, and is subject to the
  ability of the parties to provide or pay for the services required
  under the contract.
         (f)  A county that has a contract under Subsection (b) may
  impose an additional fee to a person paying a fine, fee, or tax to
  the county after it is past due. The additional fee may be used only
  to reimburse the department or the county for its expenses for
  providing services under the contract.
         (g)  In this section:
               (1)  a fine, fee, or tax is considered past due if it is
  unpaid 90 or more days after the date it is due; and
               (2)  registration of a motor vehicle includes renewal
  of the registration of the vehicle.
         (h)  This section does not apply to the registration of a
  motor vehicle under Section 501.0234, unless the vehicle is titled
  and registered in the name of a person who holds a general
  distinguishing number.
         SECTION 40.075.  The heading to Subchapter B, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER B. REGISTRATION REQUIREMENTS [STATE ADMINISTRATION]
         SECTION 40.076.  Section 502.002, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.040, Transportation Code, and amended to
  read as follows:
         Sec. 502.040  [502.002].  REGISTRATION REQUIRED; GENERAL
  RULE. (a)  The owner of a motor vehicle, trailer, or semitrailer
  shall apply for the registration of the vehicle for:
               (1)  each registration year in which the vehicle is
  used or to be used on a public highway; and
               (2)  if the vehicle is unregistered for a registration
  year that has begun and that applies to the vehicle and if the
  vehicle is used or to be used on a public highway, the remaining
  portion of that registration year.
         (b)  The application must be made in a manner prescribed by
  [to] the department through the county assessor-collector of the
  county in which the owner resides.
         (c)  A provision of this chapter that conflicts with this
  section prevails over this section to the extent of the conflict.
         (d)  A county assessor-collector, a deputy county
  assessor-collector, or a person acting on behalf of a county
  assessor-collector is not liable to any person for:
               (1)  refusing to register a motor vehicle because of
  the person's failure to submit evidence of residency that complies
  with the department's rules; or
               (2)  registering a motor vehicle under this section.
         SECTION 40.077.  Section 502.157, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.041, Transportation Code, and amended to
  read as follows:
         Sec. 502.041  [502.157]. INITIAL REGISTRATION. (a)
  Notwithstanding Section 502.040 [502.002], [when a motor vehicle
  must be registered before an application for a certificate of title
  will be accepted,] the owner of a [the] vehicle may concurrently
  apply for a [certificate of] title and for registration through the
  county assessor-collector of the county in which:
               (1)  the owner resides; or
               (2)  the vehicle is purchased or encumbered.
         (b)  The first time an owner applies for registration of a
  vehicle, the owner may demonstrate compliance with Section
  502.046(a) [502.153(a)] as to the vehicle by showing proof of
  financial responsibility in any manner specified in Section
  502.046(c) [502.153(c)] as to:
               (1)  any vehicle of the owner; or
               (2)  any vehicle used as part of the consideration for
  the purchase of the vehicle the owner applies to register.
         SECTION 40.078.  Section 502.152, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.042, Transportation Code, and amended to
  read as follows:
         Sec. 502.042  [502.152].  [CERTIFICATE OF] TITLE REQUIRED
  FOR REGISTRATION.  [(a)]  The department may not register or renew
  the registration of a motor vehicle for which a [certificate of]
  title is required under Chapter 501 unless the owner:
               (1)  obtains a [certificate of] title for the vehicle;
  or
               (2)  presents satisfactory evidence that a
  [certificate of] title was previously issued to the owner by the
  department or another jurisdiction.
         [(b)     This section does not apply to an automobile that was
  purchased new before January 1, 1936.]
         SECTION 40.079.  Section 502.151, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.043, Transportation Code, and amended to
  read as follows:
         Sec. 502.043  [502.151].  APPLICATION FOR REGISTRATION.
  (a) An application for vehicle registration must:
               (1)  be made in a manner prescribed and include the
  information required [on a form furnished] by the department by
  rule; and
               (2)  contain a [the] full description [name and address
  of the owner] of the vehicle as required by department rule [;
               [(3)  contain a brief description of the vehicle;
               [(4)     contain any other information required by the
  department; and
               [(5)  be signed by the owner].
         (b)  [For a new motor vehicle, the description of the vehicle
  must include the vehicle's:
               [(1)  trade name;
               [(2)  year model;
               [(3)  style and type of body;
               [(4)  weight, if the vehicle is a passenger car;
               [(5)     net carrying capacity and gross weight, if the
  vehicle is a commercial motor vehicle;
               [(6)  vehicle identification number; and
               [(7)     date of sale by the manufacturer or dealer to the
  applicant.
         [(c)]  An applicant for registration of a commercial motor
  vehicle, truck-tractor, trailer, or semitrailer must show
  acceptable proof [deliver] to the county assessor-collector of [an
  affidavit showing] the weight of the vehicle, the maximum load to be
  carried on the vehicle, and the gross weight for which the vehicle
  is to be registered. [The assessor-collector shall keep the
  affidavit on file.]
         (c) [(d)]  In lieu of filing an application during a year as
  provided by Subsection (a), the owner of a vehicle registered in any
  state for that year or the preceding year may present the
  registration receipt and transfer receipt, if any. The county
  assessor-collector shall accept the receipt as an application for
  renewal of the registration if the receipt indicates the applicant
  owns the vehicle. This section allows issuance for registration
  purposes only but does not authorize the department to issue a
  certificate of title or record of title.
         [(e)     If an owner or claimed owner has lost or misplaced the
  registration receipt or transfer receipt for the vehicle, the
  county assessor-collector shall register the vehicle on the
  person's furnishing to the assessor-collector satisfactory
  evidence, by affidavit or otherwise, that the person owns the
  vehicle.
         [(f)     A county assessor-collector shall date each
  registration receipt issued for a vehicle with the date on which the
  application for registration is made.]
         SECTION 40.080.  Section 502.158, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.044, Transportation Code, and amended to
  read as follows:
         Sec. 502.044  [502.158].  REGISTRATION PERIOD [YEAR]. (a)
  The department shall designate a vehicle registration year of 12
  consecutive months to begin on the first day of a calendar month and
  end on the last day of the 12th calendar month.
         (b)  The department shall designate vehicle registration
  years so as to distribute the work of the department and the county
  assessor-collectors as uniformly as possible throughout the year.
  The department may establish separate registration years for any
  vehicle or classification of vehicle and may adopt rules to
  administer the year-round registration system.
         (c)  The department may designate a registration period of
  less than 12 months to be [. The registration fee for a
  registration period of less than 12 months is] computed at a rate of
  one-twelfth the annual registration fee multiplied by the number of
  months in the registration period. The department, by rule, may
  allow payment of [may not designate a registration period of more
  than 12 months, but:
               [(1)     with the consent of the department, an owner may
  pay] registration fees for a designated period not to exceed 96 [of
  more than 12] months [; and
               [(2)     an owner of a vehicle may pay registration fees
  for a designated period of 12, 24, or 36 months.
         [(d)     An application for registration shall be made during
  the two months preceding the date on which the registration
  expires.
         [(e)     The fee to be paid for renewing a registration is the
  fee that will be in effect on the first day of the vehicle
  registration year].
         (d) [(g)]  The department shall issue [the applicant for
  registration who pays registration fees for a designated period of
  24 or 36 months] a registration receipt and registration insignia
  that are valid until the expiration of the designated period.
         SECTION 40.081.  Section 502.176, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.045, Transportation Code, and amended to
  read as follows:
         Sec. 502.045  [502.176].  DELINQUENT REGISTRATION.  (a)  A
  registration fee [prescribed by this chapter] for a vehicle becomes
  delinquent immediately if the vehicle is used on a public highway
  without the fee having been paid in accordance with this chapter.
         (b)  An [A county assessor-collector that determines that
  an] applicant for registration who provides [for which payment of
  the registration fee is delinquent has provided] evidence
  acceptable to the assessor-collector [sufficient] to establish
  good reason for delinquent registration and who [that the
  application] complies with the other requirements for registration
  under this chapter may [shall] register the vehicle for a 12-month
  period that ends on the last day of the 11th month after the month in
  which the registration occurs under this subsection. The
  registration period for vehicles registered in accordance with
  Sections 502.255, 502.431, 502.435, 502.454, 504.401, 504.505,
  504.515, and 504.613 [502.164, 502.167, 502.203, 502.255, 502.267,
  502.277, 502.278, 502.293, as added by Chapter 1222, Acts of the
  75th Legislature, Regular Session, 1997, and 502.295, as added by
  Chapter 625, Acts of the 75th Legislature, Regular Session, 1997,]
  will end on the annual registration date, and the registration fees
  will be prorated.
         (c)  A county assessor-collector that determines that an
  applicant for registration who [that] is delinquent and has not
  provided evidence acceptable [to the assessor-collector
  sufficient] to establish good reason for delinquent registration
  but who [that the application] complies with the other requirements
  for registration under this chapter shall register the vehicle for
  a 12-month period without changing the initial month of
  registration.
         (d)  A person who has been arrested or received a citation
  for a violation of Section 502.472 [502.402] may register the
  vehicle being operated at the time of the offense [with the county
  assessor-collector] for a 12-month period without change to the
  initial month of registration only if the person:
               (1)  meets the other requirements for registration
  under this chapter; and
               (2)  pays an additional charge equal to 20 percent of
  the prescribed fee.
         (e)  The department by rule [county assessor-collector]
  shall adopt a list of evidentiary items sufficient to establish
  good reason for delinquent registration under Subsection (b) and
  provide for the [forms of] evidence that may be used to establish
  good reason under that subsection. [The list of evidentiary items
  adopted under this section must allow for delinquent registration
  under Subsection (b) because of:
               [(1)  extensive repairs on the vehicle;
               [(2)     the absence of the owner of the vehicle from this
  country;
               [(3)  seasonal use of the vehicle; or
               [(4)     any other reason determined by the
  assessor-collector to be a valid explanation for the delinquent
  registration.]
         (f)  The department by rule shall adopt procedures to
  implement this section in connection with the delinquent
  registration of a vehicle registered directly with the department.
         SECTION 40.082.  Section 502.153, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.046, Transportation Code, and amended to
  read as follows:
         Sec. 502.046  [502.153].  EVIDENCE OF FINANCIAL
  RESPONSIBILITY. (a) Evidence [Except as provided by Subsection
  (j), the owner of a motor vehicle, other than a trailer or
  semitrailer, for which evidence] of financial responsibility as
  [is] required by Section 601.051 other than for a trailer or
  semitrailer [or a person who represents the owner for purposes of
  registering a motor vehicle] shall be submitted [submit evidence of
  financial responsibility] with the application for registration
  under Section 502.043 [502.151]. A county assessor-collector may
  not register the motor vehicle unless the owner or the owner's
  representative submits the evidence of financial responsibility.
         (b)  The county assessor-collector shall examine the
  evidence of financial responsibility to determine whether it
  complies with Subsection (c). After examination, [examining] the
  evidence [, the assessor-collector] shall be returned [return the
  evidence] unless it is in the form of a photocopy or an electronic
  submission.
         (c)  In this section, evidence of financial responsibility
  may be:
               (1)  a document listed under Section 601.053(a) or
  verified in compliance with Section 601.452, as added by Chapter
  892, Acts of the 79th Legislature, Regular Session, 2005;
               (2)  a liability self-insurance or pool coverage
  document issued by a political subdivision or governmental pool
  under the authority of Chapter 791, Government Code, Chapter 119,
  Local Government Code, or other applicable law in at least the
  minimum amounts required by Chapter 601;
               (3)  a photocopy of a document described by Subdivision
  (1) or (2); or
               (4)  an electronic submission of a document or the
  information contained in a document described by Subdivision (1) or
  (2).
         (d)  A personal automobile policy used as evidence of
  financial responsibility under this section must comply with
  Section 1952.052 et seq. and Sections 2301.051 through 2301.055
  [Article 5.06 or 5.145], Insurance Code.
         (e)  At the time of registration, the county
  assessor-collector shall provide to a person registering a motor
  vehicle a [separate] statement that the motor vehicle [being
  registered] may not be operated in this state unless:
               (1)  liability insurance coverage for the motor vehicle
  in at least the minimum amounts required by law remains in effect to
  insure against potential losses; or
               (2)  the motor vehicle is exempt from the insurance
  requirement because the person has established financial
  responsibility in a manner described by Sections [Section]
  601.051(2)-(5) or is exempt under Section 601.052.
         (f)  A county assessor-collector is not liable to any person
  for refusing to register a motor vehicle to which this section
  applies because of the person's failure to submit evidence of
  financial responsibility that complies with Subsection (c).
         (g)  A county, a county assessor-collector, a deputy county
  assessor-collector, a person acting for or on behalf of a county or
  a county assessor-collector, or a person acting on behalf of an
  owner for purposes of registering a motor vehicle is not liable to
  any person for registering a motor vehicle under this section.
         (h)  This section does not prevent a person from registering
  a motor vehicle by mail or through an electronic submission.
         (i)  To be valid under this section, an electronic submission
  must be in a format that is:
               (1)  submitted by electronic means, including a
  telephone, facsimile machine, or computer;
               (2)  approved by the department; and
               (3)  authorized by the commissioners court for use in
  the county.
         (j)  This section does not apply to a vehicle registered
  pursuant to Section 501.0234.
         SECTION 40.083.  Section 502.009, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.047, Transportation Code, and amended to
  read as follows:
         Sec. 502.047  [502.009].  MOTOR VEHICLE EMISSIONS
  INSPECTION AND MAINTENANCE REQUIREMENTS. (a)  The Department of
  Public Safety shall ensure compliance with the motor vehicle
  emissions inspection and maintenance program through a vehicle
  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 on Environmental
  Quality 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 on Environmental Quality or a person the commission
  designates written notification that reregistration-based
  enforcement is not required for the state implementation plan.
         (b)  A [The department may not register a] motor vehicle may
  not be registered if the department receives from the Texas
  [Natural Resource Conservation] Commission on Environmental
  Quality or the Department of Public Safety notification that the
  registered owner of the vehicle has not complied with Subchapter F,
  Chapter 548.
         (c)  A motor vehicle [The county tax assessor-collector] may
  not be registered if the [register a] vehicle was denied
  registration under Subsection (b) unless [the tax
  assessor-collector has] verification is received that the
  registered vehicle owner is in compliance with Subchapter F,
  Chapter 548.
         (d)  The department, the Texas [Natural Resource
  Conservation] Commission on Environmental Quality, 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 40.084.  Section 502.005, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.048, Transportation Code, and amended to
  read as follows:
         Sec. 502.048  [502.005].  REFUSAL TO REGISTER UNSAFE
  VEHICLE. [(a)]  The department may refuse to register a motor
  vehicle and may cancel, suspend, or revoke a registration if the
  department determines that a motor vehicle is unsafe, improperly
  equipped, or otherwise unfit to be operated on a public highway.
         [(b)     The department may refuse to register a motorcycle and
  may suspend or revoke the registration of a motorcycle if the
  department determines that the motorcycle's braking system does not
  comply with Section 547.408.]
         SECTION 40.085.  Section 502.055(b), Transportation Code,
  is amended to read as follows:
         (b)  The department may require an applicant for
  registration under this chapter to provide the department with
  evidence of:
               (1)  the manufacturer's rated carrying capacity for the
  vehicle; or
               (2)  [the nominal tonnage rating of the vehicle;
               [(3)]  the gross vehicle weight rating [of the vehicle;
  or
               [(4)     any combination of information described in
  Subdivisions (1)-(3)].
         SECTION 40.086.  Section 502.178, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.057, Transportation Code, and amended to
  read as follows:
         Sec. 502.057  [502.178].  REGISTRATION RECEIPT. [(a)]  The
  department shall issue or require to be issued to the owner of a
  vehicle registered under this chapter a registration receipt
  showing the information required by rule [:
               [(1)  the date of issuance;
               [(2)  the license number assigned to the vehicle;
               [(3)  the name and address of the owner; and
               [(4)     other information as determined by the
  department.
         [(b)     The registration receipt issued for a commercial motor
  vehicle, truck-tractor, trailer, or semitrailer must show the gross
  weight for which the vehicle is registered].
         SECTION 40.087.  Section 502.179, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.058, Transportation Code, and amended to
  read as follows:
         Sec. 502.058  [502.179].  DUPLICATE REGISTRATION RECEIPT.
  (a)  The owner of a vehicle for which the registration receipt has
  been lost or destroyed may obtain a duplicate receipt from the
  department or the county assessor-collector who issued the original
  receipt by paying a fee of $2.
         (b)  The office issuing a duplicate receipt shall retain the
  fee received [as a fee of office].
         SECTION 40.088.  Section 502.180, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.059, Transportation Code, and amended to
  read as follows:
         Sec. 502.059  [502.180].  ISSUANCE OF [LICENSE PLATE OR]
  REGISTRATION INSIGNIA. (a)  On payment of the prescribed fee [,
  the department shall issue to] an applicant for motor vehicle
  registration shall be issued a [license plate or set of plates or a
  device that, when attached to the vehicle as prescribed by the
  department, is the] registration insignia [for the period for which
  it was issued].
         (b)  [Subject to Subchapter I, the department shall issue
  only one license plate or set of plates for a vehicle during a
  five-year period.
         [(c)]  On application and payment of the prescribed fee for a
  renewal of the registration of a vehicle through the seventh [for
  the first, second, third, or fourth] registration year after the
  issuance of a license plate or set of plates for the vehicle, the
  department shall issue a registration insignia for the validation
  of the license plate or plates to be attached as provided by
  Subsection (c) [(d)].
         (c) [(d)]  Except as provided by Subsection (f) [(h)], the
  registration insignia for validation of a license plate shall be
  attached to the inside of the vehicle's windshield, if the vehicle
  has a windshield, within six inches of the place where the motor
  vehicle inspection sticker is required to be placed. If the vehicle
  does not have a windshield, the owner, when applying for
  registration or renewal of registration, shall notify the
  department, and the department shall issue a distinctive device for
  attachment to the rear license plate of the vehicle.
         (d)  Department [(e)     The department shall adopt rules for
  the issuance and use of license plates and registration insignia
  issued under this chapter. The] rules may provide for the use of an
  automated registration process, including:
               (1)  the automated on-site production of registration
  insignia; and
               (2)  automated on-premises and off-premises
  self-service registration.
         (e)  Subsection (c) does [(f)  Subsections (b)-(d) do] not
  apply to:
               (1)  the issuance of specialized license plates as
  designated by the department, including state official license
  plates, exempt plates for governmental entities, and temporary
  registration plates; or
               (2)  the issuance or validation of replacement license
  plates, except as provided by Chapter 504 [Section 502.184].
         (f)  [(g)     The department shall provide a separate and
  distinctive tab to be affixed to the license plate of an automobile,
  pickup, or recreational vehicle that is offered for rent, as a
  business, to any part of the public.
         [(h)]  The registration insignia [for validation of a
  license plate] shall be attached to the rear license plate of the
  vehicle, if the vehicle is:
               (1)  a motorcycle;
               (2)  machinery used exclusively to drill water wells or
  construction machinery for which a distinguishing license plate has
  been issued under Section 502.146 [504.504];  or
               (3)  oil well servicing, oil clean out, or oil well
  drilling machinery or equipment for which a distinguishing license
  plate has been issued under Subchapter G, Chapter 623.
         SECTION 40.089.  Section 502.184, Transportation Code, is
  transferred to Subchapter B, Chapter 502, Transportation Code,
  renumbered as Section 502.060, Transportation Code, and amended to
  read as follows:
         Sec. 502.060  [502.184].  REPLACEMENT OF [LOST, STOLEN, OR
  MUTILATED LICENSE PLATE OR] REGISTRATION INSIGNIA. (a)  The owner
  of a registered motor vehicle may obtain from the department
  through the county assessor-collector [replacement license plates
  or] a replacement registration insignia by:
               (1)  certifying [filing with the assessor-collector a
  statement:
                     [(A)  showing] that [one or both of the license
  plates or] the registration insignia to be replaced has been lost,
  stolen, or mutilated[;] and
                     [(B)  stating] that the replacement [no license
  plate or] registration insignia [to be replaced] will not be used on
  any other vehicle owned or operated by the person making the
  statement;
               (2)  paying a fee of $5 plus the fees required by
  Sections 502.356(a) [502.170(a)] and 502.360 [502.1705(a)] for
  [each set of replacement license plates or] each replacement
  registration insignia, unless specified in other law [except as
  provided by Subsection (b), (c), or (i)]; and
               (3)  returning [to] the [assessor-collector each
  replaced plate or] registration insignia in the owner's possession.
         (b)  A [No] fee is not required under this section if the
  replacement fee has been paid under Section 504.008. [for the
  replacement of lost, stolen, or mutilated specialized license
  plates issued under Sections 504.308 and 504.315(e) and (f).     The
  fee for replacement of certain specialized license plates is:
 
[License plates issued under: Fee:
 
[Section 504.411 $2
 
[Section 504.409 $9]
         (c)  The fee for replacement of a registration insignia of
  all other specialized license plates issued under this chapter
  [Section 504.507] is the amount prescribed by the department as
  necessary to recover the cost of providing the replacement
  [plates].
         (d)  [If license plates approved under Section 504.501(b) or
  504.502(c) are lost, stolen, or mutilated, the owner of the vehicle
  may obtain approval of another set of license plates as provided by
  Section 504.501 or 504.502, respectively. The fee for approval of
  replacement license plates is $5.
         [(e)]  A county assessor-collector may not issue
  [replacement license plates or a] replacement registration
  insignia without complying with this section.
         (e) [(f)]  A county assessor-collector shall retain $2.50 of
  each fee collected under this section and shall report and send the
  remainder to the department [as provided by Sections 502.102 and
  502.105].
         [(g)     Replacement license plates may be used in the
  registration year in which the plates are issued and during each
  succeeding year of the five-year period as prescribed by Section
  502.180(b) if the registration insignia is properly attached.
         [(h)     Subsection (g) does not apply to the issuance of
  specialized license plates as designated by the department,
  including state official license plates, exempt plates for
  governmental entities, and temporary registration plates.
         [(i)     The owner of a vehicle listed in Section 502.180(h) may
  obtain replacement plates and a replacement registration insignia
  by paying a fee of $5 plus the fees required by Sections 502.170(a)
  and 502.1705(a).]
         SECTION 40.090.  The heading to Subchapter C, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER C. SPECIAL REGISTRATIONS [COUNTY ADMINISTRATION]
         SECTION 40.091.  Section 502.0025, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code, and
  renumbered as Section 502.090, Transportation Code, to read as
  follows:
         Sec. 502.090  [502.0025].  EFFECT OF CERTAIN MILITARY
  SERVICE ON REGISTRATION REQUIREMENT. (a)  This section applies
  only to a motor vehicle that is owned by a person who:
               (1)  is a resident of this state;
               (2)  is on active duty in the armed forces of the United
  States;
               (3)  is stationed in or has been assigned to another
  nation under military orders; and
               (4)  has registered the vehicle or been issued a
  license for the vehicle under the applicable status of forces
  agreement by:
                     (A)  the appropriate branch of the armed forces of
  the United States; or
                     (B)  the nation in which the person is stationed
  or to which the person has been assigned.
         (b)  Unless the registration or license issued for a vehicle
  described by Subsection (a) is suspended, canceled, or revoked by
  this state as provided by law:
               (1)  Section 502.040(a) [502.002(a)] does not apply;
  and
               (2)  the registration or license issued by the armed
  forces or host nation remains valid and the motor vehicle may be
  operated in this state under that registration or license for a
  period of not more than 90 days after the date on which the vehicle
  returns to this state.
         SECTION 40.092.  Section 502.054, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  renumbered as Section 502.091, Transportation Code, and amended to
  read as follows:
         Sec. 502.091  [502.054]. INTERNATIONAL REGISTRATION PLAN
  [AGREEMENTS WITH OTHER JURISDICTIONS; OFFENSE]. (a) The
  department, through its director, may enter into an agreement with
  an authorized officer of another jurisdiction, including another
  state of the United States, a foreign country or a state, province,
  territory, or possession of a foreign country, to provide for:
               (1)  the registration of vehicles by residents of this
  state and nonresidents on an allocation or mileage apportionment
  plan, as under the International Registration Plan; and
               (2)  the exemption from payment of registration fees by
  nonresidents if residents of this state are granted reciprocal
  exemptions.
         (b)  The department may adopt and enforce rules to carry out
  the International Registration Plan or other agreement under this
  section.
         (c)  To carry out the International Registration Plan or
  other agreement under this section, the department shall direct
  that fees collected for other jurisdictions under the agreement be
  deposited to the credit of the proportional registration
  distributive fund in the state treasury and distributed to the
  appropriate jurisdiction through that fund.
         (d)  This section prevails to the extent of conflict with
  another law relating to the subject of this section.
         (e)  A person commits an offense if the person owns or
  operates a vehicle not registered in this state in violation of:
               (1)  an agreement under this section; or
               (2)  the applicable registration laws of this state, in
  the absence of an agreement under this section.
         (f)  An offense under Subsection (e) is a misdemeanor
  punishable by a fine not to exceed $200.
         SECTION 40.093.  Section 502.355, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  renumbered as Section 502.092, Transportation Code, and amended to
  read as follows:
         Sec. 502.092  [502.355]. NONRESIDENT-OWNED VEHICLES USED TO
  TRANSPORT FARM PRODUCTS [; OFFENSE]. (a) The department may issue
  to a nonresident owner a permit for a truck, truck-tractor,
  trailer, or semitrailer that:
               (1)  is registered in the owner's home state or country;
  and
               (2)  will be used to transport:
                     (A)  farm products produced in this state from the
  place of production to a place of market or storage or a railhead
  that is not more than 75 miles from the place of production;
                     (B)  machinery used to harvest farm products
  produced in this state; or
                     (C)  farm products produced outside this state
  from the point of entry into this state to a place of market,
  storage, or processing or a railhead or seaport that is not more
  than 80 miles from the point of entry.
         (b)  The department shall issue a distinguishing insignia
  for a vehicle issued a permit under this section. The insignia must
  be attached to the vehicle in lieu of regular license plates and
  must show the permit expiration date. A permit issued under this
  section is valid until the earlier of:
               (1)  the date the vehicle's registration in the owner's
  home state or country expires; or
               (2)  the 30th day after the date the permit is issued.
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the department as [on a form]
  prescribed by the department;
               (2)  paying a fee equal to 1/12 the registration fee
  prescribed by this chapter for the vehicle;
               (3)  furnishing satisfactory evidence that the motor
  vehicle is insured under an insurance policy that complies with
  Section 601.072 and that is written by:
                     (A)  an insurance company or surety company
  authorized to write motor vehicle liability insurance in this
  state; or
                     (B)  with the department's approval, a surplus
  lines insurer that meets the requirements of Chapter 981, Insurance
  Code, and rules adopted by the commissioner of insurance under that
  chapter, if the applicant is unable to obtain insurance from an
  insurer described by Paragraph (A); and
               (4)  furnishing evidence that the vehicle has been
  inspected as required under Chapter 548.
         (d)  A nonresident owner may not obtain more than three
  permits under this section during a registration year.
         (e)  A vehicle for which a permit is issued under this
  section may not be operated in this state after the permit expires
  unless the owner:
               (1)  obtains another temporary permit; or
               (2)  registers the vehicle under Section 502.253,
  502.254, 502.256 [502.162, 502.165, 502.166], or 502.255
  [502.167], as appropriate, for the remainder of the registration
  year.
         (f)  A vehicle for which a permit is issued under this
  section may not be registered under Section 502.433 [502.163].
         (g)  A mileage referred to in this section is a state highway
  mileage.
         [(h)     A person operating a vehicle under a permit issued
  under this section commits an offense if the person:
               [(1)     transports farm products to a place of market,
  storage, or processing or a railhead or seaport that is farther from
  the place of production or point of entry, as appropriate, than the
  distance provided for in the permit; or
               [(2)     follows a route other than that prescribed by the
  Texas Transportation Commission.
         [(i)     An offense under Subsection (h) is a misdemeanor
  punishable by a fine of not less than $25 or more than $200.]
         SECTION 40.094.  Section 502.353, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  renumbered as Section 502.093, Transportation Code, and amended to
  read as follows:
         Sec. 502.093  [502.353]. [FOREIGN COMMERCIAL VEHICLES;]
  ANNUAL PERMITS [; OFFENSE]. (a) The department may issue an annual
  permit in lieu of registration to a foreign commercial motor
  vehicle, trailer, or semitrailer that [:
               [(1)]  is subject to registration in this state [;] and
               [(2)]  is not authorized to travel on a public highway
  because of the lack of registration in this state or the lack of
  reciprocity with the state or country in which the vehicle is
  registered.
         (b)  A permit issued under this section [:
               [(1)  is in lieu of registration; and
               [(2)]  is valid for a vehicle registration year to
  begin on the first day of a calendar month designated by the
  department and end on the last day of the last calendar month of the
  registration year.
         (c)  A permit may not be issued under this section for the
  importation of citrus fruit into this state from a foreign country
  except for foreign export or processing for foreign export.
         (d)  A person may obtain a permit under this section by:
               (1)  applying in the manner prescribed by [to] the
  department;
               (2)  paying a registration fee in the amount required
  by Subsection (e) in the manner prescribed by the department,
  including a service charge for a credit card payment or escrow
  account [cash or by postal money order or certified check]; and
               (3)  furnishing evidence of financial responsibility
  for the motor vehicle that complies with Sections 502.046(c)
  [502.153(c)] and 601.168(a), the policies to be written by an
  insurance company or surety company authorized to write motor
  vehicle liability insurance in this state.
         (e)  The fee for a permit under this section is the fee that
  would be required for registering the vehicle under Section 502.253
  [502.162] or 502.255 [502.167], except as provided by Subsection
  (f).
         (f)  A vehicle registered under this section is exempt from
  the token fee and is not required to display the associated
  distinguishing license plate if the vehicle:
               (1)  is a semitrailer that has a gross weight of more
  than 6,000 pounds; and
               (2)  is used or intended to be used in combination with
  a truck tractor or commercial motor vehicle with a gross vehicle
  weight [manufacturer's rated carrying capacity] of more than 10,000
  pounds [one ton].
         (g)  A vehicle registered under this section is not subject
  to the fee required by Section 502.401 [502.172] or 502.403
  [502.173].
         [(h)  The department may:
               [(1)  adopt rules to administer this section; and
               [(2)     prescribe an application for a permit and other
  forms under this section.
         [(i)     A person who violates this section commits an offense.
  An offense under this section is a misdemeanor punishable by a fine
  not to exceed $200.]
         SECTION 40.095.  Section 502.352, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  renumbered as Section 502.094, Transportation Code, and amended to
  read as follows:
         Sec. 502.094  [502.352].  72- OR 144-HOUR PERMITS [FOREIGN
  COMMERCIAL VEHICLES]. (a) The department may issue a temporary
  registration permit in lieu of registration for a commercial motor
  vehicle, trailer, semitrailer, or motor bus that:
               (1)  is owned by a resident of the United States,
  Canada, or the United Mexican States;
               (2)  is subject to registration in this state; and
               (3)  is not authorized to travel on a public highway
  because of the lack of registration in this state or the lack of
  reciprocity with the state or province in which the vehicle is
  registered.
         (b)  A permit issued under this section [:
               [(1)  is in lieu of registration; and
               [(2)]  is valid for the period stated on the permit,
  effective from the date and time shown on the receipt issued as
  evidence of registration under this section.
         (c)  A person may obtain a permit under this section by:
               (1)  applying to the county assessor-collector, the
  department, or the department's wire service agent, if the
  department has a wire service agent;
               (2)  paying a fee of $25 for a 72-hour permit or $50 for
  a 144-hour permit in the manner prescribed by the department that
  may include a registration service charge for a credit card payment
  or escrow account [:
                     [(A)  in cash;
                     [(B)  by postal money order;
                     [(C)  by certified check;
                     [(D)     by wire transfer through the department's
  wire service agent, if any;
                     [(E)  by an escrow account; or
                     [(F)     where the service is provided, by a credit
  card issued by:
                           [(i)     a financial institution chartered by a
  state or the United States; or
                           [(ii)     a nationally recognized credit
  organization approved by the Texas Transportation Commission;
               [(3)     paying a discount or service charge for a credit
  card payment or escrow account, in addition to the fee]; and
               (3) [(4)]  furnishing to the county
  assessor-collector, the department, or the department's wire
  service agent, evidence of financial responsibility for the vehicle
  that complies with Sections 502.046(c) [502.153(c)] and 601.168(a)
  [and is written by an insurance company or surety company
  authorized to write motor vehicle liability insurance in this
  state].
         (d)  A county assessor-collector shall report and send a fee
  collected under this section in the manner provided by Section
  502.198 [Sections 502.102 and 502.105]. Each week, a wire service
  agent shall send to the department a report of all permits issued by
  the agent during the previous week. The department by rule shall
  prescribe the format [form] and content of a report required by this
  subsection.
         (e)  [The department may:
               [(1)  adopt rules to administer this section; and
               [(2)     prescribe an application for a permit and other
  forms under this section.
         [(f)]  A vehicle issued a permit under this section is
  subject to Subchapters B and F, Chapter 548, unless the vehicle:
               (1)  is registered in another state of the United
  States, in a province of Canada, or in a state of the United Mexican
  States; or
               (2)  is mobile drilling or servicing equipment used in
  the production of gas, crude petroleum, or oil, including a mobile
  crane or hoisting equipment, mobile lift equipment, forklift, or
  tug.
         (f) [(g)]  A commercial motor vehicle, trailer, semitrailer,
  or motor bus apprehended for violating a registration law of this
  state:
               (1)  may not be issued a permit under this section; and
               (2)  is immediately subject to registration in this
  state.
         (g) [(h)]  A person who operates a commercial motor vehicle,
  trailer, or semitrailer with an expired permit issued under this
  section is considered to be operating an unregistered vehicle
  subject to each penalty prescribed by law.
         (h) [(i)]  The department may establish one or more escrow
  accounts in the state highway fund for the prepayment of a 72-hour
  permit or a 144-hour permit. Any fee established by the department
  for the administration of this subsection shall be administered as
  required by an agreement entered into by the department.
         (i)  The department may refuse and may instruct a county
  assessor-collector to refuse to issue a temporary registration for
  any vehicle if, in the department's opinion, the vehicle or the
  owner of the vehicle has been involved in operations that
  constitute an abuse of the privilege granted by this section. A
  registration issued after notice of the involvement is received is
  void.
         SECTION 40.096.  Section 502.354, Transportation Code, is
  transferred to Subchapter C, Chapter 502, Transportation Code,
  renumbered as Section 502.095, Transportation Code, and amended to
  read as follows:
         Sec. 502.095  [502.354]. ONE-TRIP [SINGLE] OR 30-DAY TRIP
  PERMITS [; OFFENSE]. (a) The department may issue a temporary
  permit in lieu of registration for a vehicle [that:
               [(1)  is] subject to registration in this state that [;
  and
               [(2)]  is not authorized to travel on a public highway
  because of the lack of registration in this state or the lack of
  reciprocity with the state or country in which the vehicle is
  registered.
         (b)  A permit issued under this section [:
               [(1)  is in lieu of registration; and
               [(2)]  is valid for:
               (1) [(A)]  one trip, as provided by Subsection (c); or
               (2) [(B)]  30 days, as provided by Subsection (d).
         (c)  A one-trip permit is valid for one trip between the
  points of origin and destination and those intermediate points
  specified in the application and registration receipt. Unless the
  vehicle is a bus operating under charter that is not covered by a
  reciprocity agreement with the state or country in which the bus is
  registered, a one-trip permit is for the transit of the vehicle
  only, and the vehicle may not be used for the transportation of any
  passenger or property. A one-trip permit may not be valid for
  longer than 15 days from the effective date of registration.
         (d)  A 30-day permit may be issued only to a passenger
  vehicle, a private bus, a trailer or semitrailer with a gross weight
  of not more than 10,000 pounds, a light truck, or a light commercial
  vehicle with a gross vehicle weight [manufacturer's rated carrying
  capacity] of more than 10,000 pounds [one ton] that will operate
  unladen. A person may obtain multiple 30-day permits. The
  department may issue a single registration receipt to apply to all
  of the periods for which the vehicle is registered.
         (e)  A person may obtain a permit under this section by:
               (1)  applying as [on a form] provided by the department
  to:
                     (A)  the county assessor-collector of the county
  in which the vehicle will first be operated on a public highway; or
                     (B)  the department in Austin or at one of the
  department's vehicle title and registration regional offices;
               (2)  paying a fee, in the manner prescribed by the
  department including a registration service charge for a credit
  card payment or escrow account [cash or by postal money order or
  certified check,] of:
                     (A)  $5 for a one-trip permit; or
                     (B)  $25 for each 30-day period; and
               (3)  furnishing evidence of financial responsibility
  for the vehicle in a form listed under Section 502.046(c)
  [502.153(c)].
         (f)  A registration receipt [and temporary tag] shall be
  carried in the vehicle at all times during the period in which it is
  valid [issued on forms provided by the department]. The temporary
  tag must contain all pertinent information required by this section
  and must be displayed in the rear window of the vehicle so that the
  tag is clearly visible and legible when viewed from the rear of the
  vehicle. If the vehicle does not have a rear window, the temporary
  tag must be attached on or carried in the vehicle to allow ready
  inspection. The registration receipt must be carried in the
  vehicle at all times during the period in which it is valid.
         (g)  The department may refuse and may instruct a county
  assessor-collector to refuse to issue a temporary registration for
  any vehicle if, in the department's opinion, the vehicle or the
  owner of the vehicle has been involved in operations that
  constitute an abuse of the privilege granted by this section. A
  registration issued after notice to a county assessor-collector
  under this subsection is void.
         [(h)     A person issued a temporary registration under this
  section who operates a vehicle in violation of Subsection (f)
  commits an offense. An offense under this subsection is a Class C
  misdemeanor.
         [(i)  The department may:
               [(1)  adopt rules to administer this section; and
               [(2)     prescribe an application for a permit and other
  forms under this section.]
         SECTION 40.097.  The heading to Subchapter D, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER D. VEHICLES NOT ISSUED REGISTRATION [PROCEDURES AND
  FEES]
         SECTION 40.098.  Section 502.006, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  renumbered as Section 502.140, Transportation Code, and amended to
  read as follows:
         Sec. 502.140  [502.006]. ALL-TERRAIN VEHICLES. (a) Except
  as provided by Subsection (b), a person may not register an
  all-terrain vehicle, with or without design alterations, for
  operation on a public highway.
         (b)  The state, a county, or a municipality may register an
  all-terrain vehicle for operation on a public beach or highway to
  maintain public safety and welfare.
         (c) [(e)]  Section 502.401 [502.172] does not apply to an
  all-terrain vehicle.
         (d)  Operation in compliance with Section 663.037 does not
  require registration.
         SECTION 40.099.  Section 502.0071, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  renumbered as Section 502.141, Transportation Code, and amended to
  read as follows:
         Sec. 502.141  [502.0071].  GOLF CARTS. A [An owner of a]
  golf cart may be operated on a public highway without registration
  [is not required to register the golf cart] if:
               (1)  the operation of the golf cart occurs in the
  daytime, as defined by Section 541.401; and
               (2)  the operation:
                     (A)  does not exceed a distance of two miles from
  the point of origin to the destination if driven to and from a golf
  course;
                     (B)  occurs entirely within a master planned
  community with a uniform set of restrictive covenants that has had a
  plat approved by a county or a municipality; or
                     (C)  occurs on a public or private beach.
         SECTION 40.100.  Section 502.0072, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code, and
  renumbered as Section 502.142, Transportation Code, to read as
  follows:
         Sec. 502.142  [502.0072]. MANUFACTURED HOUSING.
  Manufactured housing, as defined by Section 1201.003, Occupations
  Code, is not a vehicle subject to this chapter.
         SECTION 40.101.  Section 502.0073, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  renumbered as Section 502.143, Transportation Code, and amended to
  read as follows:
         Sec. 502.143  [502.0073].  OTHER VEHICLES [POWER SWEEPERS].
  [(a)]  An owner [of a power sweeper] is not required to register the
  following vehicles for operation on a public highway:
               (1)  power sweepers;
               (2)  motorized mobility devices;
               (3)  electric personal assistive mobility devices; and
               (4)  electric bicycles [sweeper].
         [(b)     In this section, "power sweeper" means an implement,
  with or without motive power, designed for the removal by broom,
  vacuum, or regenerative air system of debris, dirt, gravel, litter,
  or sand from asphaltic concrete or cement concrete surfaces,
  including surfaces of parking lots, roads, streets, highways, and
  warehouse floors. The term includes a vehicle on which the
  implement is permanently mounted if the vehicle is used only as a
  power sweeper.]
         SECTION 40.102.  Section 502.0078, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code, and
  renumbered as Section 502.144, Transportation Code, to read as
  follows:
         Sec. 502.144  [502.0078]. VEHICLES OPERATED ON PUBLIC
  HIGHWAY SEPARATING REAL PROPERTY UNDER VEHICLE OWNER'S CONTROL.
  Where a public highway separates real property under the control of
  the owner of a motor vehicle, the operation of the motor vehicle by
  the owner or the owner's agent or employee across the highway is not
  a use of the motor vehicle on the public highway.
         SECTION 40.103.  Section 502.0079, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  renumbered as Section 502.145, Transportation Code, and amended to
  read as follows:
         Sec. 502.145  [502.0079]. VEHICLES OPERATED BY CERTAIN
  NONRESIDENTS. (a) [A nonresident owner of a motor vehicle,
  trailer, or semitrailer that is registered in the state or country
  in which the person resides may operate the vehicle to transport
  persons or property for compensation without being registered in
  this state, if the person does not exceed two trips in a calendar
  month and each trip does not exceed four days.
         [(b)     A nonresident owner of a privately owned vehicle that
  is not registered in this state may not make more than five
  occasional trips in any calendar month into this state using the
  vehicle. Each occasional trip into this state may not exceed five
  days.
         [(c)]  A nonresident owner of a privately owned passenger car
  that is registered in the state or country in which the person
  resides and that is not operated for compensation may operate the
  car in this state for the period in which the car's license plates
  are valid. In this subsection, "nonresident" means a resident of a
  state or country other than this state whose presence in this state
  is as a visitor and who does not engage in gainful employment or
  enter into business or an occupation, except as may otherwise be
  provided by any reciprocal agreement with another state or country.
         (b) [(d)]  This section does not prevent:
               (1)  a nonresident owner of a motor vehicle from
  operating the vehicle in this state for the sole purpose of
  marketing farm products raised exclusively by the person; or
               (2)  a resident of an adjoining state or country from
  operating in this state a privately owned and registered vehicle to
  go to and from the person's place of regular employment and to make
  trips to purchase merchandise, if the vehicle is not operated for
  compensation.
         (c) [(e)]  The privileges provided by this section may be
  allowed only if, under the laws of the appropriate state or country,
  similar privileges are granted to vehicles registered under the
  laws of this state and owned by residents of this state.
         (d) [(f)]  This section does not affect the right or status
  of a vehicle owner under any reciprocal agreement between this
  state and another state or country.
         SECTION 40.104.  Section 504.504, Transportation Code, is
  transferred to Subchapter D, Chapter 502, Transportation Code,
  renumbered as Section 502.146, Transportation Code, and amended to
  read as follows:
         Sec. 502.146  [504.504]. CERTAIN FARM VEHICLES AND DRILLING
  AND CONSTRUCTION EQUIPMENT. (a) The department shall issue
  specialty license plates to a vehicle described by Subsection (b)
  or (c). The fee for the license plates is $5.
         (b)  An owner is not required to register a vehicle that is
  used only temporarily on the highways if the vehicle is:
               (1)  a farm trailer or farm semitrailer with a gross
  weight of more than 4,000 pounds but not more than 34,000 pounds
  that is used exclusively to transport:
                     (A)  seasonally harvested agricultural products
  or livestock from the place of production to the place of
  processing, market, or storage; or
                     (B)  farm supplies from the place of loading to
  the farm;
               (2)  machinery used exclusively for the purpose of
  drilling water wells; [or]
               (3)  oil well servicing or drilling machinery; or
               (4)  construction machinery [that is not designed to
  transport persons or property on a public highway].
         (c)  An owner is not required to register a vehicle that is:
               (1)  a farm trailer or farm semitrailer owned by a
  cotton gin and used exclusively to transport agricultural products
  without charge from the place of production to the place of
  processing, market, or storage;
               (2)  a trailer used exclusively to transport fertilizer
  without charge from a place of supply or storage to a farm; or
               (3)  a trailer used exclusively to transport cottonseed
  without charge from a place of supply or storage to a farm or place
  of processing.
         (d)  A vehicle described by Subsection (b) is exempt from the
  inspection requirements of Subchapters B and F, Chapter 548.
         (e)  This section does not apply to a farm trailer or farm
  semitrailer that:
               (1)  is used for hire;
               (2)  has metal tires operating in contact with the
  highway;
               (3)  is not equipped with an adequate hitch pinned or
  locked so that it will remain securely engaged to the towing vehicle
  while in motion; or
               (4)  is not operated and equipped in compliance with
  all other law.
         (f)  A vehicle to which this section applies that is operated
  on a public highway in violation of this section is considered to be
  operated while unregistered and is immediately subject to the
  applicable registration fees and penalties prescribed by this
  chapter [Chapter 502].
         (g)  In this section, the gross weight of a trailer or
  semitrailer is the combined weight of the vehicle and the load
  carried on the highway.
         SECTION 40.105.  The heading to Subchapter E, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER E. ADMINISTRATION OF FEES [SPECIALLY DESIGNATED LICENSE
  PLATES; EXEMPTIONS FOR GOVERNMENTAL AND QUASI-GOVERNMENTAL
  VEHICLES]
         SECTION 40.106.  Section 502.159, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.190, Transportation Code, and amended to
  read as follows:
         Sec. 502.190  [502.159].  SCHEDULE OF REGISTRATION FEES.
  The department shall post [compile and furnish to each county
  assessor-collector] a complete schedule of registration fees on the
  Internet [to be collected on the various makes, models, and types of
  vehicles].
         SECTION 40.107.  Section 502.004, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.191, Transportation Code, and amended to
  read as follows:
         Sec. 502.191  [502.004].  COLLECTION OF FEES. (a) A person
  may not collect a registration fee under this chapter unless the
  person is:
               (1)  an officer or employee of the department; or
               (2)  a county assessor-collector or a deputy county
  assessor-collector.
         (b)  The department may accept electronic payment by
  electronic funds transfer, credit card, or debit card of any fee
  that the department is authorized to collect under this chapter.
         (c)  The department may collect a fee for processing a
  payment by electronic funds transfer, credit card, or debit card.
  The amount of the fee must be reasonably related to the expense
  incurred by the department in processing the payment by electronic
  funds transfer, credit card, or debit card and may not be more than
  five percent of the amount of the registration fee being paid.
         (d)  In addition to the fee authorized by Subsection (c), the
  department may collect from a person making payment by electronic
  funds transfer, credit card, or debit card an amount equal to the
  amount of any registration transaction fee charged to the
  department by a vendor providing services in connection with
  payments made by electronic funds transfer, credit card, or debit
  card. The limitation prescribed by Subsection (c) on the amount of
  a fee does not apply to a fee collected under this subsection.
         (e)  If, for any reason, the payment of a fee under this
  chapter by electronic funds transfer, credit card, or debit card is
  not honored by the funding institution or by the electronic funds
  transfer, credit card, or debit card company on which the funds are
  drawn, the department may collect from the person who owes the fee
  being collected a service charge that is for the collection of that
  original amount and is in addition to the original fee. The amount
  of the service charge must be reasonably related to the expense
  incurred by the department in collecting the original amount.
         SECTION 40.108.  Subchapter E, Chapter 502, Transportation
  Code, is amended by adding Section 502.192 to read as follows:
         Sec. 502.192.  TRANSFER FEE. The purchaser of a used motor
  vehicle shall pay, in addition to any fee required under Chapter 501
  for the transfer of title, a transfer fee of $2.50 for the transfer
  of the registration of the motor vehicle. The county
  assessor-collector may retain as commission for services provided
  under this subchapter half of each transfer fee collected.
         SECTION 40.109.  Section 502.181, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.193, Transportation Code, and amended to
  read as follows:
         Sec. 502.193  [502.181].  PAYMENT [OF REGISTRATION FEE] BY
  CHECK DRAWN AGAINST INSUFFICIENT FUNDS. (a) A county
  assessor-collector who receives from any person a check or draft
  for [drawn on a bank or trust company in] payment of a registration
  fee for a registration year that has not ended [on a motor vehicle,
  trailer, or motorcycle sidecar] that is returned unpaid because of
  insufficient funds or no funds in the bank or trust company to the
  credit of the drawer of the check or draft shall immediately certify
  the fact to the sheriff or a constable or highway patrol officer in
  the county. The certification must:
               (1)  be under the assessor-collector's official seal;
               (2)  include the name and address of the person who gave
  [the assessor-collector] the check or draft;
               (3)  include the license plate number and make of the
  vehicle; and
               (4)  be accompanied by the check or draft.
         (b)  On receiving a complaint under Subsection (a) from the
  county assessor-collector, the sheriff, constable, or highway
  patrol officer shall find the person who gave [the
  assessor-collector] the check or draft, if the person is in the
  county, and demand immediate redemption of the check or draft from
  the person. If the person fails or refuses to redeem the check or
  draft, the sheriff, constable, or highway patrol officer shall:
               (1)  seize and remove the license plates and
  registration insignia from the vehicle; and
               (2)  return the license plates and registration
  insignia to the county assessor-collector.
         SECTION 40.110.  Section 502.182, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.194, Transportation Code, and amended to
  read as follows:
         Sec. 502.194  [502.182].  CREDIT FOR REGISTRATION FEE PAID
  ON MOTOR VEHICLE SUBSEQUENTLY DESTROYED. (a)  The owner of a motor
  vehicle that is destroyed to the extent that it cannot afterwards be
  operated on a public highway is entitled to a registration fee
  credit if the prorated portion of the registration fee for the
  remainder of the registration year is more than $15. The owner must
  claim the credit by [:
               [(1)]  sending the registration fee receipt [and the
  license plates] for the vehicle to the department [; and
               [(2)     executing a statement on a form provided by the
  department showing that the license plates have been surrendered to
  the department].
         (b)  The department, on satisfactory proof that the vehicle
  is destroyed, shall issue a registration fee credit slip to the
  owner in an amount equal to the prorated portion of the registration
  fee for the remainder of the registration year. The owner, during
  the same or the next registration year, may use the registration fee
  credit slip as payment or part payment for the registration of
  another vehicle to the extent of the credit.
         [(c)     A statement executed under Subsection (a)(2) shall be
  delivered to a purchaser of the destroyed vehicle. The purchaser
  may surrender the statement to the department in lieu of the vehicle
  license plates.
         [(d)     The department shall adopt rules to administer this
  section.]
         SECTION 40.111.  Section 502.183, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.195, Transportation Code, and amended to
  read as follows:
         Sec. 502.195  [502.183].  REFUND OF OVERCHARGED
  REGISTRATION FEE. (a)  The owner of a motor vehicle [that is
  required to be registered] who pays an annual registration fee in
  excess of the statutory amount is entitled to a refund of the
  overcharge.
         (b)  The county assessor-collector who collects the
  excessive fee shall refund an overcharge on presentation to the
  assessor-collector of satisfactory evidence of the overcharge[.
  The owner must make a claim for a refund of an overcharge] not later
  than the first [fifth] anniversary of the date the excessive
  registration fee was paid.
         (c)  A refund shall be paid from the fund in which the
  county's share of registration fees is deposited.
         SECTION 40.112.  Section 502.051, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  renumbered as Section 502.196, Transportation Code, to read as
  follows:
         Sec. 502.196  [502.051].  DEPOSIT OF REGISTRATION FEES IN
  STATE HIGHWAY FUND. Except as otherwise provided by this chapter,
  the Texas Transportation Commission and the department shall
  deposit all money received from registration fees in the state
  treasury to the credit of the state highway fund.
         SECTION 40.113.  Section 502.101, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  renumbered as Section 502.197, Transportation Code, to read as
  follows:
         Sec. 502.197  [502.101].  REGISTRATION BY MAIL OR
  ELECTRONIC MEANS; SERVICE CHARGE. (a)  A county
  assessor-collector may collect a service charge of $1 from each
  applicant registering a vehicle by mail. The service charge shall
  be used to pay the costs of handling and postage to mail the
  registration receipt and insignia to the applicant.
         (b)  With the approval of the commissioners court of a
  county, a county assessor-collector may contract with a private
  entity to enable an applicant for registration to use an electronic
  off-premises location. A private entity may charge an applicant
  not more than $1 for the service provided.
         (c)  The department may adopt rules to cover the timely
  application for and issuance of registration receipts and insignia
  by mail or through an electronic off-premises location.
         SECTION 40.114.  Section 502.102, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.198, Transportation Code, and amended to
  read as follows:
         Sec. 502.198  [502.102].  DISPOSITION OF FEES GENERALLY.
  (a)  Except as provided by Section 502.1982 [Sections 502.103 and
  502.104], this section applies to all fees collected by a county
  assessor-collector under this chapter.
         (b)  Each Monday, a county assessor-collector shall credit
  to the county road and bridge fund an amount equal to the net
  collections made during the preceding week until the amount so
  credited for the calendar year equals the total of:
               (1)  $60,000;
               (2)  $350 for each mile of county road maintained by the
  county, according to the most recent information available from the
  department, not to exceed 500 miles; and
               (3)  an additional amount of fees equal to the amount
  calculated under Section 502.1981 [502.1025].
         (c)  After the credits to the county road and bridge fund
  equal the total computed under Subsection (b), each Monday the
  county assessor-collector shall:
               (1)  credit to the county road and bridge fund an amount
  equal to 50 percent of the net collections made during the preceding
  week, until the amount so credited for the calendar year equals
  $125,000; and
               (2)  send to the department an amount equal to 50
  percent of those collections.
         (d)  After the credits to the county road and bridge fund
  equal the total amounts computed under Subsections (b) and (c)(1),
  each Monday the county assessor-collector shall send to the
  department all collections made during the preceding week.
         [(e)     Each Monday the county assessor-collector shall send
  to the department a copy of each receipt issued the previous week
  for a registration fee under this chapter.]
         SECTION 40.115.  Section 502.1025, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.1981, Transportation Code, and amended to
  read as follows:
         Sec. 502.1981  [502.1025].  CALCULATION OF ADDITIONAL FEE
  AMOUNTS RETAINED BY A COUNTY. (a)  The county tax
  assessor-collector each calendar year shall calculate five percent
  of the tax and penalties collected by the county tax
  assessor-collector under Chapter 152, Tax Code, in the preceding
  calendar year. In addition, the county tax assessor-collector
  shall calculate each calendar year an amount equal to five percent
  of the tax and penalties that the comptroller:
               (1)  collected under Section 152.047, Tax Code, in the
  preceding calendar year; and
               (2)  determines are attributable to sales in the
  county.
         (b)  A county tax assessor-collector shall retain under
  Section 502.198(b) [502.102(b)] fees based on the following
  percentage of the amounts calculated under Subsection [subsection]
  (a) during each of the following fiscal years:
               (1)  [in fiscal year 2006, 90 percent;
               [(2)  in fiscal year 2007, 80 percent;
               [(3)  in fiscal year 2008, 70 percent;
               [(4)  in fiscal year 2009, 60 percent;
               [(5)  in fiscal year 2010, 50 percent;
               [(6)  in fiscal year 2011, 40 percent;
               [(7)  in fiscal year 2012, 30 percent;
               [(8)]  in fiscal year 2013, 20 percent;
               (2) [(9)]  in fiscal year 2014, 10 percent;
               (3) [(10)]  in fiscal year 2015 and succeeding years, 0
  percent.
         (c)  The county shall credit the amounts retained under
  Subsection (b) to the county road and bridge fund. Money credited
  to the fund under this section may only be used for:
               (1)  county road construction, maintenance, and
  repair;
               (2)  bridge construction, maintenance, and repair;
               (3)  the purchase of right-of-way for road or highway
  purposes; or
               (4)  the relocation of utilities for road or highway
  purposes.
         SECTION 40.116.  Section 502.103, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.1982, Transportation Code, and amended to
  read as follows:
         Sec. 502.1982  [502.103].  DISPOSITION OF OPTIONAL COUNTY
  ROAD AND BRIDGE FEE. Each Monday a county assessor-collector shall
  apportion the collections for the preceding week for a fee imposed
  under Section 502.401 [502.172] by:
               (1)  crediting an amount equal to 97 percent of the
  collections to the county road and bridge fund; and
               (2)  sending to the department an amount equal to three
  percent of the collections to defray the department's costs of
  administering Section 502.401 [502.172].
         SECTION 40.117.  Section 502.106, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.1983, Transportation Code, and amended to
  read as follows:
         Sec. 502.1983  [502.106].  DEPOSIT OF FEES IN
  INTEREST-BEARING ACCOUNT. (a) Except as provided by Section
  502.1982 [Sections 502.103 and 502.104], a county
  assessor-collector may:
               (1)  deposit the fees in an interest-bearing account or
  certificate in the county depository; and
               (2)  send the fees to the department not later than the
  34th day after the date the fees are due [under Section 502.104].
         (b)  The county owns all interest earned on fees deposited
  under this section. The county treasurer shall credit the interest
  to the county general fund.
         SECTION 40.118.  Section 502.107, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  renumbered as Section 502.1984, Transportation Code, to read as
  follows:
         Sec. 502.1984  [502.107].  INTEREST ON FEES. (a) A fee
  required to be sent to the department under this chapter bears
  interest for the benefit of the state highway fund at an annual rate
  of 10 percent beginning on the 60th day after the date the county
  assessor-collector collects the fee.
         (b)  The department shall audit the registration and
  transfer fees collected and disbursed by each county
  assessor-collector and shall determine the exact amount of interest
  due on any fee not sent to the department.
         (c)  The state has a claim against a county
  assessor-collector and the sureties on the assessor-collector's
  official bond for the amount of interest due on a fee.
         SECTION 40.119.  Section 502.108, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code,
  renumbered as Section 502.1985, Transportation Code, and amended to
  read as follows:
         Sec. 502.1985  [502.108].  USE OF REGISTRATION FEES
  RETAINED BY COUNTY.  (a)  Money credited to the county road and
  bridge fund under Section 502.198 [502.102] or 502.1982 [502.103]
  may not be used to pay the compensation of the county judge or a
  county commissioner. The money may be used only for the
  construction and maintenance of lateral roads in the county, under
  the supervision of the county engineer.
         (b)  If there is not a county engineer, the commissioners
  court of the county may require the services of the department's
  district engineer or resident engineer to supervise the
  construction and surveying of lateral roads in the county.
         (c)  A county may use money allocated to it under this
  chapter to:
               (1)  pay obligations issued in the construction or
  improvement of any roads, including state highways in the county;
               (2)  improve the roads in the county road system; or
               (3)  construct new roads.
         (d)  To the maximum extent possible, contracts for roads
  constructed by a county using funds provided under this chapter
  should be awarded by competitive bids.
         SECTION 40.120.  Section 502.110, Transportation Code, is
  transferred to Subchapter E, Chapter 502, Transportation Code, and
  renumbered as Section 502.1986, Transportation Code, to read as
  follows:
         Sec. 502.1986  [502.110].  CONTINGENT PROVISION FOR
  DISTRIBUTION OF FEES BETWEEN STATE AND COUNTIES.  If the method of
  distributing vehicle registration fees collected under this
  chapter between the state and counties is declared invalid because
  of inequality of collection or distribution of those fees, 60
  percent of each fee shall be distributed to the county collecting
  the fee and 40 percent shall be sent to the state in the manner
  provided by this chapter.
         SECTION 40.121.  The heading to Subchapter F, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER F. REGULAR REGISTRATION FEES [SPECIALIZED LICENSE
  PLATES; EXEMPTIONS FOR PRIVATELY OWNED VEHICLES]
         SECTION 40.122.  Section 502.160, Transportation Code, is
  transferred to Subchapter F, Chapter 502, Transportation Code,
  renumbered as Section 502.251, Transportation Code, and amended to
  read as follows:
         Sec. 502.251  [502.160].  FEE: MOTORCYCLE OR MOPED. The
  fee for a registration year for registration of a motorcycle or
  moped is $30.
         SECTION 40.123.  Section 502.161, Transportation Code, is
  transferred to Subchapter F, Chapter 502, Transportation Code,
  renumbered as Section 502.252, Transportation Code, and amended to
  read as follows:
         Sec. 502.252  [502.161].  FEE: PASSENGER CAR, MUNICIPAL
  BUS, PRIVATE BUS, PRIVATELY OWNED FORMER MILITARY VEHICLE OR FIRE
  TRUCK. (a) The fee for a registration year for registration of a
  passenger car, a municipal bus, or a private bus that weighs 6,000
  pounds or less is:
               (1)  $40.50 for a vehicle the model year of which is
  more than six years before the year in which the registration year
  begins;
               (2)  $50.50 for a vehicle the model year of which is
  more than three years but is six years or less before the year in
  which the registration year begins; or
               (3)  $58.50 for a vehicle the model year of which is
  three years or less before the year in which the registration year
  begins.
         (b)  The fee for a registration year for registration of a
  passenger car, a municipal bus, or a private bus that weighs more
  than 6,000 pounds is $25 plus 60 cents for each 100 pounds.
         (c)  For registration purposes, the weight of a passenger
  car, a municipal bus, or a private bus is the weight generally
  accepted as its correct shipping weight plus 100 pounds.
         (d)  The fee for a registration year for registration of a
  privately owned former military vehicle or fire truck, including
  the plate, is $15, unless eligible for the fee in accordance with
  Section 504.502.
               (1)  In this section:
                     (A)  "Fire truck" means a vehicle originally
  designed to assist in fighting fires, by transporting firefighters
  to the scene, and providing them with access to the fire, water, or
  other equipment.
                     (B)  "Former military vehicle" has the meaning
  assigned by Section 504.502.
                     (C)  "Privately owned" means being owned by a
  person other than a governmental entity. [In this section,
  "private bus" has the meaning assigned by Section 502.294.]
         SECTION 40.124.  Section 502.162, Transportation Code, is
  transferred to Subchapter F, Chapter 502, Transportation Code,
  renumbered as Section 502.253, Transportation Code, and amended to
  read as follows:
         Sec. 502.253  [502.162].  FEE: COMMERCIAL MOTOR VEHICLE OR
  TRUCK-TRACTOR. [(a)] The fee for a registration year for
  registration of a commercial motor vehicle or truck-tractor is $25
  plus an amount determined according to the vehicle's gross weight
  and tire equipment, as follows:
 
 
Gross weight Fee for each 100 pounds or
 
in pounds fraction of 100 pounds
 
 
 
Equipped with Equipped with
 
pneumatic tires solid tires
 
        1-6,000 $0.44 $0.55
 
    6,001-8,000  0.495 0.66
 
    8,001-10,000 0.605 0.77
 
   10,001-17,000 0.715 0.88
 
   17,001-24,000 0.77 0.99
 
   24,001-31,000 0.88 1.10
 
   31,001 and over 0.99 1.32
         [(b)     The gross weight of a vehicle is the actual weight of
  the vehicle, fully equipped with a body and other equipment, as
  certified by a public weigher or a license and weight inspector of
  the Department of Public Safety, plus its net carrying capacity.
         [(c)     The net carrying capacity of a vehicle other than a bus
  is the heaviest net load to be carried on the vehicle, but not less
  than the manufacturer's rated carrying capacity.
         [(d)     The net carrying capacity of a bus is computed by
  multiplying its seating capacity by 150 pounds. The seating
  capacity of a bus is:
               [(1)     the manufacturer's rated seating capacity,
  excluding the operator's seat; or
               [(2)     if the manufacturer has not rated the vehicle for
  seating capacity, a number computed by allowing one passenger for
  each 16 inches of seating on the bus, excluding the operator's
  seat.]
         SECTION 40.125.  Section 502.166, Transportation Code, is
  transferred to Subchapter F, Chapter 502, Transportation Code,
  renumbered as Section 502.254, Transportation Code, and amended to
  read as follows:
         Sec. 502.254  [502.166].  FEE: TRAILER OR SEMITRAILER.
  [(a)] The fee for a registration year for registration of a trailer
  or semitrailer is $25 plus an amount determined according to the
  vehicle's gross weight and tire equipment, as follows:
 
 
Gross weight Fee for each 100 pounds or
 
in pounds fraction of 100 pounds
 
 
Equipped with Equipped with
 
pneumatic tires solid tires
 
        1-6,000 $0.33 $0.44
 
    6,001-8,000  0.44  0.55
 
    8,001-10,000  0.55  0.66
 
   10,001-17,000  0.66  0.88
 
   17,001 and over  0.715  0.99
         [(b)     The gross weight of a trailer or semitrailer is the
  actual weight of the vehicle, as certified by a public weigher or a
  license and weight inspector of the Department of Public Safety,
  plus its net carrying capacity.
         [(c)     The net carrying capacity of a vehicle is the heaviest
  net load to be carried on the vehicle, but not less than the
  manufacturer's rated carrying capacity.
         [(d)     The department may issue specially designed license
  plates for rental trailers and travel trailers that include, as
  appropriate, the words "rental trailer" or "travel trailer."
         [(e)  In this section:
               [(1)     "Rental fleet" means five or more vehicles that
  are:
                     [(A)  owned by the same owner;
                     [(B)     offered for rent or rented without drivers;
  and
                     [(C)     designated by the owner in the manner
  prescribed by the department as a rental fleet.
               [(2)  "Rental trailer" means a utility trailer that:
                     [(A)     has a gross weight of 4,000 pounds or less;
  and
                     [(B)  is part of a rental fleet.
               [(3)     "Travel trailer" means a house trailer-type
  vehicle or a camper trailer that is:
                     [(A)     less than eight feet in width or 40 feet in
  length, exclusive of any hitch installed on the vehicle; and
                     [(B)     designed primarily for use as temporary
  living quarters in connection with recreational, camping, travel,
  or seasonal use and not as a permanent dwelling; provided that
  "travel trailer" shall not include a utility trailer, enclosed
  trailer, or other trailer not having human habitation as its
  primary purpose.]
         SECTION 40.126.  Section 502.167, Transportation Code, is
  transferred to Subchapter F, Chapter 502, Transportation Code,
  renumbered as Section 502.255, Transportation Code, and amended to
  read as follows:
         Sec. 502.255  [502.167].  TRUCK-TRACTOR OR COMMERCIAL MOTOR
  VEHICLE COMBINATION FEE; SEMITRAILER TOKEN FEE. (a)  This section
  applies only to a truck-tractor or commercial motor vehicle with a
  gross vehicle weight [manufacturer's rated carrying capacity] of
  more than 18,000 pounds [one ton] that is used or is to be used in
  combination with a semitrailer that has a gross weight of more than
  6,000 pounds.
         (b)  Notwithstanding Section 502.253 [502.162], the fee for
  a registration year for registration of a truck-tractor or
  commercial motor vehicle is $40 plus an amount determined according
  to the combined gross weight of the vehicles, as follows:
 
 
Fee for each 100 pounds
 
Combined gross weight or
 
in pounds fraction of 100 pounds
 
        18,000-36,000 $0.60
 
        36,001-42,000 0.75
 
        42,001-62,000 0.90
 
        62,001 and over 1.00
         (c)  Notwithstanding Section 502.254 [502.166], the fee for
  a registration year for registration of a semitrailer used in the
  manner described by Subsection (a), regardless of the date the
  semitrailer is registered, is:
               (1)  $30, for a semitrailer being propelled by a power
  unit for which a permit under Section 623.011 has been issued; or
               (2)  $15, for a semitrailer being propelled by a power
  unit for which a permit under Section 623.011 has not been issued.
         (d)  A registration made under Subsection (c) is valid only
  when the semitrailer is used in the manner described by Subsection
  (a).
         (e)  For registration purposes, a semitrailer converted to a
  trailer by means of an auxiliary axle assembly retains its status as
  a semitrailer.
         (f)  A combination of vehicles may not be registered under
  this section for a combined gross weight of less than 18,000 pounds.
         (g)  This section does not apply to:
               (1)  a combination of vehicles that includes a vehicle
  that has a distinguishing license plate under Section 502.146
  [504.504];
               (2)  a truck-tractor or commercial motor vehicle
  registered or to be registered with $5 distinguishing license
  plates for which the vehicle is eligible under this chapter;
               (3)  a truck-tractor or commercial motor vehicle used
  exclusively in combination with a semitrailer of the travel trailer
  [housetrailer] type; or
               (4)  a vehicle registered or to be registered:
                     (A)  with a temporary registration permit;
                     (B)  under Section 502.433 [502.163]; or
                     (C)  under Section 502.435 [502.188].
         (h)  The department may adopt rules to administer this
  section.
         (i)  The department may issue specially designed license
  plates for token trailers.
         (j)  A person may register a semitrailer under this section
  for a registration period of five consecutive years if the person:
               (1)  applies to the department for the five-year
  registration;
               (2)  provides proof of the person's eligibility to
  register the vehicle under this subsection as required by the
  department; and
               (3)  pays a fee of $15, plus any applicable fee under
  Section 502.401 [502.172], for each year included in the
  registration period.
         (k)  If during the five-year registration period for a
  vehicle registered under Subsection (j) the amount of a fee imposed
  under that subsection is increased, the owner of the vehicle is
  liable to the department for the amount of the increase. If the
  amount of a fee is decreased, the owner of the vehicle is not
  entitled to a refund.
         [(l)  In this section:
               [(1)     "Combined gross weight" means the empty weight of
  the truck-tractor or commercial motor vehicle combined with the
  empty weight of the heaviest semitrailer used or to be used in
  combination with the truck-tractor or commercial motor vehicle plus
  the heaviest net load to be carried on the combination during the
  registration year.
               [(2)     "Empty weight" means the unladen weight of the
  truck-tractor or commercial motor vehicle and semitrailer
  combination fully equipped, as certified by a public weigher or
  license and weight inspector of the Department of Public Safety.
               [(3)  "Token trailer" means a semitrailer that:
                     [(A)     has a gross weight of more than 6,000
  pounds; and
                     [(B)     is operated in combination with a truck or a
  truck-tractor that has been issued:
                           [(i)  an apportioned license plate;
                           [(ii)  a combination license plate; or
                           [(iii)  a forestry vehicle license plate.
               [(4)     "Apportioned license plate" means a license plate
  issued in lieu of truck license plates or combination license
  plates to a motor carrier in this state who proportionally
  registers a vehicle owned by the carrier in one or more other
  states.
               [(5)     "Combination license plate" means a license plate
  issued for a truck or truck-tractor that:
                     [(A)     has a manufacturer's rated carrying
  capacity of more than one ton; and
                     [(B)     is used or intended to be used in
  combination with a semitrailer that has a gross weight of more than
  6,000 pounds.]
         SECTION 40.127.  Section 502.165, Transportation Code, is
  transferred to Subchapter F, Chapter 502, Transportation Code, and
  renumbered as Section 502.256, Transportation Code, to read as
  follows:
         Sec. 502.256  [502.165].  FEE: ROAD TRACTOR. The fee for a
  registration year for registration of a road tractor is $25 plus an
  amount determined according to the vehicle's weight as certified by
  a public weigher or a license and weight inspector of the Department
  of Public Safety, as follows:
 
 
Fee for each 100 pounds
 
Gross weight in or
 
pounds fraction of 100 pounds
 
 
1-4,000 $0.275
 
4,001-6,000 0.55
 
6,001-8,000 0.66
 
 8,001-10,000  0.825
 
10,001 and over 1.10
         SECTION 40.128.  The heading to Subchapter G, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER G. ADDITIONAL FEES [TEMPORARY REGISTRATION]
         SECTION 40.129.  Section 502.1705, Transportation Code, is
  transferred to Subchapter G, Chapter 502, Transportation Code,
  renumbered as Section 502.356, Transportation Code, and amended to
  read as follows:
         Sec. 502.356  [502.1705].  [ADDITIONAL FEE FOR] AUTOMATED
  REGISTRATION AND TITLING [TITLE] SYSTEM. (a)  In addition to other
  registration fees for a license plate or set of license plates or
  other device used as the registration insignia, a fee of $1 shall be
  collected.
         (b)  The department may use money collected under this
  section to enhance and provide [perform one or more of the
  following:
               [(1)     enhancing the department's automated
  registration and title system;
               [(2)     providing for the automated on-site production of
  registration insignia; or
               [(3)  providing] for automated on-premises and
  off-premises [self-service] registration and titling related
  services.
         (c)  This section applies only in a county in which the
  department's automated registration and title system has been
  implemented and in which 50,000 or more motor vehicles were
  registered during the preceding year.
         SECTION 40.130.  Section 502.1715, Transportation Code, as
  amended by Chapters 892 (S.B. 1670) and 1108 (H.B. 2337), Acts of
  the 79th Legislature, Regular Session, 2005, is transferred to
  Subchapter G, Chapter 502, Transportation Code, renumbered as
  Section 502.357, Transportation Code, and reenacted and amended to
  read as follows:
         Sec. 502.357  [502.1715].  FINANCIAL RESPONSIBILITY
  [ADDITIONAL FEE FOR CERTAIN DEPARTMENT] PROGRAMS.  (a)  In
  addition to other fees imposed for registration of a motor vehicle,
  at the time of application for registration or renewal of
  registration of a motor vehicle for which the owner is required to
  submit evidence of financial responsibility under Section 502.046
  [502.153], the applicant shall pay a fee of $1. In addition to other
  fees imposed for registration of a motor vehicle, at the time of
  application for registration of a motor vehicle that is subject to
  Section 501.0234, the applicant shall pay a fee of $1. Fees
  collected under this section shall be remitted weekly to the
  department.
         (b)  Fees collected under this section shall be deposited to
  the credit of the state highway fund. Subject to appropriations,
  the money shall be used by the Department of Public Safety to:
               (1)  support the Department of Public Safety's
  reengineering of the driver's license system to provide for the
  issuance by the Department of Public Safety of a driver's license or
  personal identification certificate, to include use of image
  comparison technology;
               (2)  establish and maintain a system to support the
  driver responsibility program under Chapter 708; and
               (3)  make lease payments to the master lease purchase
  program for the financing of the driver's license reengineering
  project.
         (c)  Fees collected under this section shall be deposited to
  the credit of the state highway fund. Subject to appropriation, the
  money may be used by the Department of Public Safety, the Texas
  Department of Insurance, the Department of Information Resources,
  and the department to carry out Subchapter N, Chapter 601.
         (d)  The Department of Public Safety, the Texas Department of
  Insurance, the Department of Information Resources, and the
  department shall jointly adopt rules and develop forms necessary to
  administer this section.
         SECTION 40.131.  Section 502.1675, Transportation Code, is
  transferred to Subchapter G, Chapter 502, Transportation Code,
  renumbered as Section 502.358, Transportation Code, and amended to
  read as follows:
         Sec. 502.358  [502.1675]. TEXAS EMISSIONS REDUCTION PLAN
  SURCHARGE. (a) In addition to the registration fees charged under
  Section 502.255 [502.167], a surcharge is imposed on the
  registration of a truck-tractor or commercial motor vehicle under
  that section in an amount equal to 10 percent of the total fees due
  for the registration of the truck-tractor or commercial motor
  vehicle under that section.
         (b)  The county tax assessor-collector shall remit the
  surcharge collected under this section to the comptroller at the
  time and in the manner prescribed by the comptroller for deposit in
  the Texas emissions reduction plan fund.
         (c)  This section expires August 31, 2013.
         SECTION 40.132.  Section 502.171, Transportation Code, is
  transferred to Subchapter G, Chapter 502, Transportation Code,
  renumbered as Section 502.359, Transportation Code, and amended to
  read as follows:
         Sec. 502.359  [502.171].  ADDITIONAL FEE FOR CERTAIN
  VEHICLES USING DIESEL MOTOR. (a)  The registration fee under this
  chapter for a motor vehicle other than a passenger car, a truck with
  a gross vehicle weight [manufacturer's rated carrying capacity] of
  18,000 pounds [two tons] or less, or a vehicle registered in
  combination under Section 502.255 [502.167] is increased by 11
  percent if the vehicle has a diesel motor.
         (b)  The [A county assessor-collector shall show on the]
  registration receipt for a motor vehicle, other than a passenger
  car or a truck with a gross vehicle weight [manufacturer's rated
  carrying capacity] of 18,000 pounds [two tons] or less, must show
  that the vehicle has a diesel motor.
         (c)  The department may adopt rules to administer this
  section.
         SECTION 40.133.  Section 502.170, Transportation Code, is
  transferred to Subchapter G, Chapter 502, Transportation Code, and
  renumbered as Section 502.360, Transportation Code, to read as
  follows:
         Sec. 502.360  [502.170].  ADDITIONAL FEE FOR REFLECTORIZED
  LICENSE PLATES. (a)  In addition to the other registration fees
  for a license plate or set of license plates or other device used as
  the registration insignia, 30 cents shall be collected.
         (b)  The department shall use money collected under this
  section to purchase equipment and material for the production and
  manufacture of reflectorized license plates.
         SECTION 40.134.  The heading to Subchapter H, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER H. OPTIONAL FEES [OFFENSES AND PENALTIES]
         SECTION 40.135.  Section 502.172, Transportation Code, is
  transferred to Subchapter H, Chapter 502, Transportation Code,
  renumbered as Section 502.401, Transportation Code, and amended to
  read as follows:
         Sec. 502.401  [502.172].  OPTIONAL COUNTY FEE FOR ROAD AND
  BRIDGE FUND. (a) The commissioners court of a county by order may
  impose an additional fee, not to exceed $10, for registering a
  vehicle in the county.
         (b)  A vehicle that may be registered under this chapter
  without payment of a registration fee may be registered in a county
  imposing a fee under this section without payment of the additional
  fee.
         (c)  A fee imposed under this section may take effect only on
  January 1 of a year. The county must adopt the order and notify the
  department not later than September 1 of the year preceding the year
  in which the fee takes effect.
         (d)  A fee imposed under this section may be removed. The
  removal may take effect only on January 1 of a year. A county may
  remove the fee only by:
               (1)  rescinding the order imposing the fee; and
               (2)  notifying the department not later than September
  1 of the year preceding the year in which the removal takes effect.
         (e)  The county assessor-collector of a county imposing a fee
  under this section shall collect the additional fee for a vehicle
  when other fees imposed under this chapter are collected.
         (f)  The department shall collect the additional fee on a
  vehicle that is owned by a resident of a county imposing a fee under
  this section [and] that[, under this chapter,] must be registered
  directly with the department. The department shall send all fees
  collected for a county under this subsection to the county
  treasurer to be credited to the county road and bridge fund.
         (g)  The department shall adopt rules [and develop forms]
  necessary to administer registration [by mail] for a vehicle being
  registered in a county imposing a fee under this section.
         SECTION 40.136.  Section 502.1725, Transportation Code, is
  transferred to Subchapter H, Chapter 502, Transportation Code,
  renumbered as Section 502.402, Transportation Code, and amended to
  read as follows:
         Sec. 502.402  [502.1725].  OPTIONAL COUNTY FEE FOR
  TRANSPORTATION PROJECTS.  (a)  This section applies only to a
  county:
               (1)  that borders the United Mexican States;
               (2)  that has a population of more than 300,000; and
               (3)  in which the largest municipality has a population
  of less than 300,000.
         (b)  The commissioners court of a county by order may impose
  an additional fee, not to exceed $10, for [registering] a vehicle
  registered in the county.
         (c)  A vehicle that may be registered under this chapter
  without payment of a registration fee may be registered [in a county
  imposing a fee] under this section without payment of the
  additional fee.
         (d)  A fee imposed under this section may take effect [only
  on January 1 of a year.     The county must adopt the order] and
  [notify the department not later than September 1 of the year
  preceding the year in which the fee takes effect.
         [(e)  A fee imposed under this section may] be removed in
  accordance with Section 502.401 requirements[. The removal may
  take effect only on January 1 of a year. A county may remove the fee
  only by:
               [(1)  rescinding the order imposing the fee; and
               [(2)     notifying the department not later than September
  1 of the year preceding the year in which the removal takes effect].
         (e) [(f)]  The [county assessor-collector of a county
  imposing a fee under this section shall collect the] additional fee
  shall be collected for a vehicle when other fees imposed under this
  chapter are collected.  The [county shall send the] fee revenue
  collected shall be sent to the regional mobility authority of the
  county to fund long-term transportation projects in the county.
         (f)  [(g)     The department shall collect the additional fee
  on a vehicle that is owned by a resident of a county imposing a fee
  under this section and that, under this chapter, must be registered
  directly with the department.     The department shall send all fees
  collected for a county under this subsection to the regional
  mobility authority of the county to fund long-term transportation
  projects in the county.
         [(h)]  The department shall adopt rules [and develop forms]
  necessary to administer registration [by mail] for a vehicle being
  registered in a county imposing a fee under this section.
         SECTION 40.137.  Section 502.173, Transportation Code, is
  transferred to Subchapter H, Chapter 502, Transportation Code,
  renumbered as Section 502.403, Transportation Code, and amended to
  read as follows:
         Sec. 502.403  [502.173].  OPTIONAL COUNTY FEE FOR CHILD
  SAFETY.  (a)  The commissioners court of a county that has a
  population greater than 1.3 million and in which a municipality
  with a population of more than one million is primarily located may
  impose by order an additional fee of not less than 50 cents or more
  than $1.50 for [registering] a vehicle registered in the county.
  The commissioners court of any other county may impose by order an
  additional fee of not more than $1.50 for registering a vehicle in
  the county.
         (b)  A vehicle that may be registered under this chapter
  without payment of a registration fee may be registered [in a county
  imposing a fee under this section] without payment of the
  additional fee.
         (c)  A fee imposed under this section may take effect [only
  on January 1 of a year. The county must adopt the order] and [notify
  the department not later than September 10 of the year preceding the
  year in which the fee takes effect.
         [(d)  A fee imposed under this section may] be removed in
  accordance with the provisions of Section 502.401[. The removal
  may take effect only on January 1 of a year. A county may remove the
  fee only by:
               [(1)  rescinding the order imposing the fee; and
               [(2)     notifying the department not later than September
  1 of the year preceding the year in which the removal takes effect].
         (d) [(e)]  The [county assessor-collector of a county
  imposing a fee under this section shall collect the] additional fee
  shall be collected for a vehicle when other fees imposed under this
  chapter are collected.
         (e) [(f)]  A county imposing a fee under this section may
  deduct for administrative costs an amount of not more than 10
  percent of the revenue it receives from the fee. The county may
  also deduct from the fee revenue an amount proportional to the
  percentage of county residents who live in unincorporated areas of
  the county. After making the deductions provided for by this
  subsection, the county shall send the remainder of the fee revenue
  to the municipalities in the county according to their population.
         (f) [(g)]  A municipality with a population greater than
  850,000 shall deposit revenue from a fee imposed under this
  subsection to the credit of the child safety trust fund created
  under Section 106.001, Local Government Code. A municipality with a
  population less than 850,000 shall use revenue from a fee imposed
  under this section in accordance with Subsection (f), Article
  102.014, Code of Criminal Procedure.
         (g) [(h)]  After deducting administrative costs, a county
  may use revenue from a fee imposed under this section only for a
  purpose permitted by Subsection (g), Article 102.014, Code of
  Criminal Procedure.
         SECTION 40.138.  Section 502.174, Transportation Code, is
  transferred to Subchapter H, Chapter 502, Transportation Code,
  renumbered as Section 502.404, Transportation Code, and amended to
  read as follows:
         Sec. 502.404  [502.174].  VOLUNTARY ASSESSMENT FOR YOUNG
  FARMER LOAN GUARANTEES. (a)  When a person registers a commercial
  motor vehicle under Section 502.433 [502.163], the person shall pay
  a voluntary assessment of $5.
         (b)  The county assessor-collector shall send an assessment
  collected under this section to the comptroller, at the time and in
  the manner prescribed by the Texas Agricultural Finance Authority,
  for deposit in the Texas agricultural fund to the credit of the
  young farmer loan guarantee account.
         (c)  The Texas Agricultural Finance Authority shall
  prescribe procedures under which an assessment collected under this
  section may be refunded. The county assessor-collector of the
  county in which an assessment is collected shall:
               (1)  implement the refund procedures; and
               (2)  provide notice of those procedures to a person
  paying an assessment at the time of payment.
         SECTION 40.139.  Section 502.1745, Transportation Code, is
  transferred to Subchapter H, Chapter 502, Transportation Code,
  renumbered as Section 502.405, Transportation Code, and amended to
  read as follows:
         Sec. 502.405  [502.1745].  DONOR EDUCATION, AWARENESS, AND
  REGISTRY PROGRAM [VOLUNTARY FEE]. (a)  The department shall
  provide to each county assessor-collector the educational
  materials for prospective donors provided as required by the Donor
  Education, Awareness, and Registry Program of Texas under Chapter
  49, Health and Safety Code.  The [A county assessor-collector shall
  make the] educational materials shall be made available in each
  office authorized to accept applications for registration of motor
  vehicles.
         (b)  A person may elect to pay [county assessor-collector
  shall collect] an additional fee of $1 for the registration or
  renewal of registration of a motor vehicle to pay the costs of the
  Donor Education, Awareness, and Registry Program of Texas,
  established under Chapter 49, Health and Safety Code, and of the
  Texas Organ, Tissue, and Eye Donor Council, established under
  Chapter 113, Health and Safety Code [, if the person registering or
  renewing the registration of a motor vehicle opts to pay the
  additional fee]. Notwithstanding any other provision of this
  chapter, the county assessor-collector shall remit all fees
  collected under this subsection to the comptroller, who shall
  maintain the identity of the source of the fees.
         (c)  Three percent of all money collected under this section
  may be appropriated only to the department to administer this
  section.
         SECTION 40.140.  The heading to Subchapter I, Chapter 502,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER I. ALTERNATE REGISTRATION FEES [TRANSFER AND REMOVAL OF
  LICENSE PLATES FOR THE SALE OR TRANSFER OF USED VEHICLES]
         SECTION 40.141.  Section 502.164, Transportation Code, is
  transferred to Subchapter I, Chapter 502, Transportation Code, and
  renumbered as Section 502.431, Transportation Code, to read as
  follows:
         Sec. 502.431  [502.164].  FEE: MOTOR VEHICLE USED
  EXCLUSIVELY TO TRANSPORT AND SPREAD FERTILIZER. The fee for a
  registration year for registration of a motor vehicle designed or
  modified and used exclusively to transport to the field and spread
  fertilizer, including agricultural limestone, is $75.
         SECTION 40.142.  Section 502.1586, Transportation Code, is
  transferred to Subchapter I, Chapter 502, Transportation Code,
  renumbered as Section 502.432, Transportation Code, and amended to
  read as follows:
         Sec. 502.432  [502.1586]. [REGISTRATION PERIOD FOR
  TRUCK-TRACTOR OR COMMERCIAL MOTOR] VEHICLE TRANSPORTING SEASONAL
  AGRICULTURAL PRODUCTS. (a) The department shall provide for a
  monthly registration period for a truck-tractor or a commercial
  motor vehicle that:
               (1)  is used exclusively to transport a seasonal
  agricultural product; and
               (2)  would otherwise be registered for a vehicle
  registration year.
         (b)  The department shall [adopt forms for registration
  under this section. An applicant must indicate the number of months
  registration is applied for.
         [(c)  The department shall design,] prescribe [, and
  furnish] a registration receipt that is valid until the expiration
  of the designated registration period.
         (c) [(d)]  The registration fee for a registration under
  this section is computed at a rate of one-twelfth the annual
  registration fee under Section 502.253 [502.162], 502.433
  [502.163], or 502.255 [502.167], as applicable, multiplied by the
  number of months in the registration period specified in the
  application for the registration, which may not be less than one
  month or longer than six months.
         (d) [(e)     A person issued a registration under this section
  commits an offense if the person, during the registration period
  for the truck-tractor or commercial motor vehicle, uses the
  truck-tractor or commercial motor vehicle for a purpose other than
  to transport a seasonal agricultural product.
         [(f)     A truck-tractor or commercial motor vehicle may not be
  registered under this section for a registration period that is
  less than one month or longer than six months.
         [(g)]  For purposes of this section, "to transport a seasonal
  agricultural product" includes any transportation activity
  necessary for the production, harvest, or delivery of an
  agricultural product that is produced seasonally.
         SECTION 40.143.  Section 502.163, Transportation Code, is
  transferred to Subchapter I, Chapter 502, Transportation Code,
  renumbered as Section 502.433, Transportation Code, and amended to
  read as follows:
         Sec. 502.433  [502.163].  FEE: COMMERCIAL FARM MOTOR
  VEHICLE [USED PRIMARILY FOR FARM PURPOSES; OFFENSE].  (a)  The
  registration fee for a commercial motor vehicle as a farm vehicle is
  50 percent of the applicable fee under Section 502.253 [502.162] if
  the vehicle's owner will use the vehicle for commercial purposes
  only to transport:
               (1)  the person's own poultry, dairy, livestock,
  livestock products, timber in its natural state, or farm products
  to market or another place for sale or processing;
               (2)  laborers from their place of residence to the
  owner's farm or ranch; or
               (3)  without charge, materials, tools, equipment, or
  supplies from the place of purchase or storage to the owner's farm
  or ranch exclusively for the owner's use or for use on the farm or
  ranch.
         (b)  A commercial motor vehicle may be registered under this
  section despite its use for transporting without charge the owner
  or a member of the owner's family:
               (1)  to attend church or school;
               (2)  to visit a doctor for medical treatment or
  supplies; or
               (3)  for other necessities of the home or family.
         (c)  Subsection (b) does not permit the use of a vehicle
  registered under this section in connection with gainful employment
  other than farming or ranching.
         (d)  The department shall provide distinguishing license
  plates for a vehicle registered under this section.
         (e)  The owner of a commercial motor vehicle registered under
  this section commits an offense if the person uses or permits to be
  used the vehicle for a purpose other than one permitted by this
  section. Each use or permission for use in violation of this
  section is a separate offense.
         [(f)     An offense under this section is a misdemeanor
  punishable by a fine of not less than $25 or more than $200.]
         SECTION 40.144.  Section 502.351, Transportation Code, is
  transferred to Subchapter I, Chapter 502, Transportation Code,
  renumbered as Section 502.434, Transportation Code, and amended to
  read as follows:
         Sec. 502.434  [502.351]. FARM VEHICLES: EXCESS WEIGHT. (a)
  The owner of a registered commercial motor vehicle, truck-tractor,
  trailer, or semitrailer may obtain a short-term permit to haul
  loads of a weight more than that for which the vehicle is registered
  by paying an additional fee before the additional weight is hauled
  to transport:
               (1)  the person's own seasonal agricultural products to
  market or another point for sale or processing;
               (2)  seasonal laborers from their place of residence to
  a farm or ranch; or
               (3)  materials, tools, equipment, or supplies, without
  charge, from the place of purchase or storage to a farm or ranch
  exclusively for use on the farm or ranch.
         (b)  A permit may not be issued under this section for a
  period that is less than one month or that:
               (1)  is greater than one year; or
               (2)  extends beyond the expiration of the registration
  year for the vehicle.
         (c)  A permit issued under this section for a quarter must be
  for a calendar quarter.
         (d)  The fee for a permit under this section is a percentage
  of the difference between the registration fee otherwise prescribed
  [by this chapter] for the vehicle and the annual fee for the desired
  weight, as follows:
 
One month (30 consecutive days) 10 percent    
 
One quarter 30 percent    
 
Two quarters 60 percent    
 
Three quarters 90 percent    
         (e)  The department shall design, prescribe, and furnish a
  sticker, plate, or other means of indicating the additional weight
  and the registration period for each vehicle registered under this
  section.
         SECTION 40.145.  Section 502.188, Transportation Code, is
  transferred to Subchapter I, Chapter 502, Transportation Code,
  renumbered as Section 502.435, Transportation Code, and amended to
  read as follows:
         Sec. 502.435  [502.188].  CERTAIN SOIL CONSERVATION
  EQUIPMENT. (a)  The owner of a truck-tractor, semitrailer, or
  low-boy trailer used on a highway exclusively to transport the
  owner's soil conservation machinery or equipment used in clearing
  real property, terracing, or building farm ponds, levees, or
  ditches may register the vehicle for a fee equal to 50 percent of
  the fee otherwise prescribed by this chapter for the vehicle.
         (b)  An owner may register only one truck-tractor and only
  one semitrailer or low-boy trailer under this section.
         (c)  An owner [applying for registration under this section]
  must certify [submit a statement] that the vehicle is to be used
  only as provided by Subsection (a).
         (d)  The registration receipt issued for a vehicle
  registered under this section must be carried in or on the vehicle
  and [shall] state the nature of the operation for which the vehicle
  may be used. [The receipt must be carried at all times in or on the
  vehicle to permit ready inspection.]
         (e)  A vehicle to which this section applies that is operated
  on a public highway in violation of this section is considered to be
  operated while unregistered and is immediately subject to the
  applicable registration fees and penalties prescribed by this
  chapter.
         SECTION 40.146.  Chapter 502, Transportation Code, is
  amended by adding Subchapter J to read as follows:
  SUBCHAPTER J. REGISTRATIONS EXEMPT FROM FEES
         SECTION 40.147.  Section 502.201, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.451, Transportation
  Code, and amended to read as follows:
         Sec. 502.451  [502.201].  [LICENSE PLATES FOR] EXEMPT
  VEHICLES. (a)  Before license plates are issued or delivered to
  the owner of a vehicle that is exempt by law from payment of
  registration fees, the department must approve the application for
  registration. The department may not approve an application if
  there is the appearance that:
               (1)  the vehicle was transferred to the owner or
  purported owner:
                     (A)  for the sole purpose of evading the payment
  of registration fees; or
                     (B)  in bad faith; or
               (2)  the vehicle is not being used in accordance with
  the exemption requirements.
         (b)  The department shall revoke the registration of a
  vehicle issued license plates under this section and may recall the
  plates if the vehicle is no longer:
               (1)  owned and operated by the person whose ownership
  of the vehicle qualified the vehicle for the exemption; or
               (2)  used in accordance with the exemption
  requirements.
         (c)  The owner of a vehicle described by Subsection (b) shall
  return the license plates and registration receipt to the
  department for cancellation.
         (d)  The department shall provide by rule for the issuance of
  specially designated license plates for vehicles that are exempt by
  law. Except as provided by Subsection (g), the license plates must
  bear the word "exempt."
         (e)  A license plate under Subsection (d) is not issued
  annually, but remains on the vehicle until:
               (1)  the registration is revoked as provided by
  Subsection (b); or
               (2)  the plate is lost, stolen, or mutilated.
         (f)  A person who operates on a public highway a vehicle
  after the registration has been revoked is liable for the penalties
  for failing to register a vehicle.
         (g)  The department shall provide by rule for the issuance of
  regularly designed license plates not bearing the word "exempt" for
  a vehicle that is exempt by law and that is:
               (1)  a law enforcement vehicle, if the agency certifies
  to the department that the vehicle will be dedicated to law
  enforcement activities;
               (2)  a vehicle exempt from inscription requirements
  under a rule adopted as provided by Section 721.003; or
               (3)  a vehicle exempt from inscription requirements
  under an order or ordinance adopted by a governing body of a
  municipality or commissioners court of a county as provided by
  Section 721.005, if the applicant presents a copy of the order or
  ordinance.
         SECTION 40.148.  Section 502.2015, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.452, Transportation
  Code, and amended to read as follows:
         Sec. 502.452  [502.2015].  LIMITATION ON ISSUANCE OF EXEMPT
  LICENSE PLATES; SEIZURE OF CERTAIN VEHICLES. (a)  The department
  may not issue exempt license plates for a vehicle owned by the
  United States, this state, or a political subdivision of this state
  unless when application is made for registration of the vehicle,
  the person who under Section 502.453 [502.202] has authority to
  certify to the department that the vehicle qualifies for
  registration under that section also certifies in writing to the
  department that there is printed on each side of the vehicle, in
  letters that are at least two inches high or in an emblem that is at
  least 100 square inches in size, the name of the agency, department,
  bureau, board, commission, or officer of the United States, this
  state, or the political subdivision of this state that has custody
  of the vehicle. The letters or emblem must be of a color
  sufficiently different from the body of the vehicle to be clearly
  legible from a distance of 100 feet.
         (b)  The department may not issue exempt license plates for a
  vehicle owned by a person other than the United States, this state,
  or a political subdivision of this state unless, when application
  is made for registration of the vehicle, the person who under
  Section 502.453 [502.202] has authority to certify to the
  department that the vehicle qualifies for registration under that
  section also certifies in writing to the department that the name of
  the owner of the vehicle is printed on the vehicle in the manner
  prescribed by Subsection (a).
         (c)  A peace officer listed in Article 2.12, Code of Criminal
  Procedure, may seize a motor vehicle displaying exempt license
  plates if the vehicle is:
               (1)  operated on a public highway; and
               (2)  not identified in the manner prescribed by
  Subsection (a) or (b), unless the vehicle is covered by Subsection
  (f).
         (d)  A peace officer who seizes a motor vehicle under
  Subsection (c) may require that the vehicle be:
               (1)  moved to the nearest place of safety off the
  main-traveled part of the highway; or
               (2)  removed and placed in the nearest vehicle storage
  facility designated or maintained by the law enforcement agency
  that employs the peace officer.
         (e)  To obtain the release of the vehicle, in addition to any
  other requirement of law, the owner of a vehicle seized under
  Subsection (c) must:
               (1)  remedy the defect by identifying the vehicle as
  required by Subsection (a) or (b); or
               (2)  agree in writing with the law enforcement agency
  to provide evidence to that agency, before the 10th day after the
  date the vehicle is released, that the defect has been remedied by
  identifying the vehicle as required by Subsection (a) or (b).
         (f)  Subsections (a) and (b) do not apply to a vehicle to
  which Section 502.451(g) [502.201(g) or 502.206] applies.
         (g)  For purposes of this section, an exempt license plate is
  a license plate issued by the department that is plainly marked with
  the word "exempt."
         SECTION 40.149  Section 502.202, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.453, Transportation
  Code, and amended to read as follows:
         Sec. 502.453  [502.202].  GOVERNMENT-OWNED VEHICLES; PUBLIC
  SCHOOL BUSES; FIRE-FIGHTING VEHICLES; COUNTY MARINE LAW
  ENFORCEMENT VEHICLES. (a) The owner of a motor vehicle, trailer,
  or semitrailer may annually apply for registration under Section
  502.451 [502.201] and is exempt from the payment of a registration
  fee under this chapter if the vehicle is:
               (1)  owned by and used exclusively in the service of:
                     (A)  the United States;
                     (B)  this state; or
                     (C)  a county, municipality, or school district in
  this state;
               (2)  owned by a commercial transportation company and
  used exclusively to provide public school transportation services
  to a school district under Section 34.008, Education Code;
               (3)  designed and used exclusively for fire fighting;
               (4)  owned by a volunteer fire department and used
  exclusively in the conduct of department business; [or]
               (5)  privately owned and used by a volunteer
  exclusively in county marine law enforcement activities, including
  rescue operations, under the direction of the sheriff's department;
  or
               (6)  used by law enforcement under an alias for covert
  criminal investigations.
         (b)  An application for registration under this section must
  be made by a person having the authority to certify that the vehicle
  meets the exemption requirements prescribed by Subsection (a). An
  application for registration under this section of a fire-fighting
  vehicle described by Subsection (a)(3) must include a reasonable
  description of the vehicle and of any fire-fighting equipment
  mounted on the vehicle. An application for registration under this
  section of a vehicle described by Subsection (a)(5) must include a
  statement signed by a person having the authority to act for a
  sheriff's department that the vehicle is used exclusively in marine
  law enforcement activities under the direction of the sheriff's
  department.
         SECTION 40.150.  Section 502.203, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.454, Transportation
  Code, and amended to read as follows:
         Sec. 502.454  [502.203]. VEHICLES USED BY NONPROFIT
  DISASTER RELIEF ORGANIZATIONS. (a) The owner of a commercial motor
  vehicle, trailer, or semitrailer may apply for registration under
  Section 502.451 [502.201] and is exempt from the payment of the
  registration fee that would otherwise be required by this chapter
  if the vehicle is owned and used exclusively for emergencies by a
  nonprofit disaster relief organization.
         (b)  An application for registration under this section must
  include:
               (1)  a statement by the owner of the vehicle that the
  vehicle is used exclusively for emergencies and has not been used
  for any other purpose;
               (2)  a statement signed by an officer of the nonprofit
  disaster relief organization that the vehicle has not been used for
  any purpose other than emergencies and qualifies for registration
  under this section; and
               (3)  a reasonable description of the vehicle and the
  emergency equipment included in the vehicle.
         (c)  An applicant for registration under this section must
  pay a fee of $5.
         (d)  A commercial motor vehicle registered under this
  section must display the name of the organization that owns it on
  each front door.
         (e)  A vehicle registered under this section must display at
  all times an appropriate license plate showing the vehicle's
  status.
         (f)  A vehicle registered under this section that is used for
  any purpose other than an emergency may not again be registered
  under this section.
         SECTION 40.151.  Section 502.2035, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, and renumbered as Section 502.455,
  Transportation Code, to read as follows:
         Sec. 502.455  [502.2035]. TRAILERS AND SEMITRAILERS OWNED
  BY RELIGIOUS ORGANIZATIONS. (a) A trailer or semitrailer may be
  registered without payment if the trailer or semitrailer is:
               (1)  owned by an organization that qualifies as a
  religious organization under Section 11.20, Tax Code; and
               (2)  used primarily for the purpose of transporting
  property in connection with the charitable activities and functions
  of the organization.
         (b)  An application for registration under this section must
  include a statement signed by an officer of the religious
  organization stating that the trailer or semitrailer qualifies for
  registration under this section.
         SECTION 40.152.  Section 502.204, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.456, Transportation
  Code, and amended to read as follows:
         Sec. 502.456  [502.204]. EMERGENCY SERVICES VEHICLES. (a)
  A vehicle may be registered without payment if:
               (1)  the vehicle is owned or leased by an emergency
  medical services provider that:
                     (A)  is a nonprofit entity; or
                     (B)  is created and operated by:
                           (i)  a county;
                           (ii)  a municipality; or
                           (iii)  any combination of counties and
  municipalities through a contract, joint agreement, or other method
  provided by Chapter 791, Government Code, or other law authorizing
  counties and municipalities to provide joint programs; and
               (2)  the vehicle:
                     (A)  is authorized under an emergency medical
  services provider license issued by the Department of State [Texas
  Board of] Health Services under Chapter 773, Health and Safety
  Code, and is used exclusively as an emergency medical services
  vehicle; or
                     (B)  is an emergency medical services chief or
  supervisor vehicle and is used exclusively as an emergency services
  vehicle.
         (b)  A vehicle may be registered without payment of a
  registration fee if the vehicle:
               (1)  is owned by the Civil Air Patrol, Texas Wing; and
               (2)  is used exclusively as an emergency services
  vehicle by members of the Civil Air Patrol, Texas Wing.
         (c)  An application for registration under Subsection (a)
  must be accompanied by a copy of the license issued by the
  Department of State [Texas Board of] Health Services. An
  application for registration of an emergency medical services
  vehicle must include a statement signed by an officer of the
  emergency medical services provider that the vehicle is used
  exclusively as an emergency response vehicle and qualifies for
  registration under this section. An application for registration
  of an emergency medical services chief or supervisor vehicle must
  include a statement signed by an officer of the emergency medical
  services provider stating that the vehicle qualifies for
  registration under this section.
         (d)  An application for registration under Subsection (b)
  must include a statement signed by an officer of the Civil Air
  Patrol, Texas Wing, that the vehicle is used exclusively as an
  emergency services vehicle by members of the Civil Air Patrol,
  Texas Wing.
         (e)  The department must approve an application for
  registration under this section as provided by Section 502.451
  [502.201].
         SECTION 40.153.  Section 520.0225, Transportation Code, is
  transferred to Subchapter J, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.457, Transportation
  Code, and amended to read as follows:
         Sec. 502.457  [520.0225].  PERSONS ON ACTIVE DUTY IN ARMED
  FORCES OF UNITED STATES. (a)  This section applies only to a used
  motor vehicle that is owned by a person who:
               (1)  is on active duty in the armed forces of the United
  States;
               (2)  is stationed in or has been assigned to another
  nation under military orders; and
               (3)  has registered the vehicle or been issued a
  license for the vehicle under the applicable status of forces
  agreement by:
                     (A)  the appropriate branch of the armed forces of
  the United States; or
                     (B)  the nation in which the person is stationed
  or to which the person has been assigned.
         (b)  The requirement [in Section 520.021] that a used vehicle
  be registered under the law of this state does not apply to a
  vehicle described by Subsection (a). In lieu of delivering the
  license receipt to the transferee of the vehicle, as required by
  Section 501.0721 [520.022], the person selling, trading, or
  otherwise transferring a used motor vehicle described by Subsection
  (a) shall deliver to the transferee:
               (1)  a letter written on official letterhead by the
  owner's unit commander attesting to the registration of the vehicle
  under Subsection (a)(3); or
               (2)  the registration receipt issued by the appropriate
  branch of the armed forces or host nation.
         (c)  A registration receipt issued by a host nation that is
  not written in the English language must be accompanied by:
               (1)  a written translation of the registration receipt
  in English; and
               (2)  an affidavit, in English and signed by the person
  translating the registration receipt, attesting to the person's
  ability to translate the registration receipt into English.
         SECTION 40.154.  Chapter 502, Transportation Code, is
  amended by adding Subchapter K to read as follows:
  SUBCHAPTER K. OFFENSES AND PENALTIES
         SECTION 40.155.  Section 502.401, Transportation Code, is
  transferred to Subchapter K, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.471, Transportation
  Code, and amended to read as follows:
         Sec. 502.471  [502.401]. GENERAL PENALTY. (a) A person
  commits an offense if the person violates a provision of this
  chapter and no other penalty is prescribed for the violation.
         (b)  Unless otherwise specified, an [This section does not
  apply to a violation of Section 502.003, 502.101, 502.109, 502.112,
  502.113, 502.114, 502.152, 502.164, or 502.282.
         [(c)  An] offense under this section is a misdemeanor
  punishable by a fine not to exceed $200.
         SECTION 40.156.  Section 502.402, Transportation Code, is
  transferred to Subchapter K, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.472, Transportation
  Code, and amended to read as follows:
         Sec. 502.472  [502.402].  OPERATION OF VEHICLE UNDER
  IMPROPER REGISTRATION [UNREGISTERED MOTOR VEHICLE]. [(a)] A
  person commits an offense if the person operates a motor vehicle
  that has not been registered or registered for a class other than
  that to which the vehicle belongs as required by law. [An offense
  under this subsection is a misdemeanor punishable by a fine not to
  exceed $200.]
         SECTION 40.157.  Section 502.404, Transportation Code, is
  transferred to Subchapter K, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.473, Transportation
  Code, and amended to read as follows:
         Sec. 502.473  [502.404].  OPERATION OF VEHICLE WITHOUT
  [LICENSE PLATE OR] REGISTRATION INSIGNIA. (a) A person commits an
  offense if the person operates on a public highway during a
  registration period a passenger car, [or] commercial motor vehicle,
  road tractor, motorcycle, trailer, or semitrailer that does not
  display a [two license plates, at the front and rear of the vehicle,
  that have been:
               [(1)  assigned by the department for the period; or
               [(2)]  validated [by a] registration insignia issued by
  the department that establishes that the vehicle is registered [for
  the period].
         (b)  Subsection [A person commits an offense if the person
  operates on a public highway during a registration period a
  passenger car or commercial motor vehicle, other than a vehicle
  assigned license plates for the registration period, that does not
  properly display the registration insignia issued by the department
  that establishes that the license plates have been validated for
  the period.
         [(c)     A person commits an offense if the person operates on a
  public highway during a registration period a road tractor,
  motorcycle, trailer, or semitrailer that does not display a license
  plate, attached to the rear of the vehicle, that has been:
               [(1)  assigned by the department for the period; or
               [(2)     validated by a registration insignia issued by
  the department that establishes that the vehicle is registered for
  the period.
         [(d)  Subsections] (a) does [and (b) do] not apply to a
  dealer operating a vehicle as provided by law.
         (c)  [(e)     An offense under this section is a misdemeanor
  punishable by a fine not to exceed $200.
         [(f)]  A court may dismiss a charge brought under Subsection
  (a) if the defendant:
               (1)  remedies the defect before the defendant's first
  court appearance; or [and]
               (2)  [pays an administrative fee not to exceed $10.
         [(g)     A court may dismiss a charge brought under Subsection
  (b) if the defendant:
               [(1)]  shows that [:
                     [(A)]  the passenger car or commercial [motor]
  vehicle was issued a registration insignia by the department that
  was attached to the passenger car or commercial vehicle that
  establishes that the vehicle was registered for the period during
  which the offense was committed; and
               (3)  [(B)     the registration insignia described in
  Paragraph (A) was attached to the passenger car or commercial motor
  vehicle before the defendant's first court appearance; and
               [(2)]  pays an administrative fee not to exceed $10.
         SECTION 40.158.  Subchapter K, Chapter 502, Transportation
  Code, as added by this Act, is amended by adding Section 502.474 to
  read as follows:
         Sec. 502.474.  OPERATION OF ONE-TRIP PERMIT VEHICLE. A
  person commits an offense if the person operates a vehicle for which
  a one-trip permit is required without the registration receipt and
  properly displayed temporary tag.
         SECTION 40.159.  Section 502.409, Transportation Code, as
  amended by Chapters 30 (S.B. 369) and 1027 (H.B. 1623), Acts of the
  80th Legislature, Regular Session, 2007, is transferred to
  Subchapter K, Chapter 502, Transportation Code, as added by this
  Act, renumbered as Section 502.475, Transportation Code, and
  amended to read as follows:
         Sec. 502.475  [502.409].  WRONG, FICTITIOUS, ALTERED, OR
  OBSCURED INSIGNIA [LICENSE PLATE]. (a) A person commits an offense
  if the person attaches to or displays on a motor vehicle [a number
  plate or] registration insignia that:
               (1)  is assigned to a different motor vehicle;
               (2)  is assigned to the vehicle under any other motor
  vehicle law other than by the department;
               (3)  is assigned for a registration period other than
  the registration period in effect; or
               (4)  is fictitious [;
               [(5)     has blurring or reflective matter that
  significantly impairs the readability of the name of the state in
  which the vehicle is registered or the letters or numbers of the
  license plate number at any time;
               [(6)     has an attached illuminated device or sticker,
  decal, emblem, or other insignia that is not authorized by law and
  that interferes with the readability of the letters or numbers of
  the license plate number or the name of the state in which the
  vehicle is registered; or
               [(7)     has a coating, covering, protective material, or
  other apparatus that:
                     [(A)     distorts angular visibility or
  detectability;
                     [(B)     alters or obscures one-half or more of the
  name of the state in which the vehicle is registered; or
                     [(C)     alters or obscures the letters or numbers of
  the license plate number or the color of the plate].
         (b)  An [Except as provided by Subsection (f), an] offense
  under Subsection (a) is a misdemeanor punishable by a fine of not
  more than $200, unless it is shown at the trial of the offense that
  the owner knowingly altered or made illegible the letters, numbers,
  and other identification marks, in which case the offense is a Class
  B misdemeanor.
         [(c)  Subsection (a)(7) may not be construed to apply to:
               [(1)     a trailer hitch installed on a vehicle in a normal
  or customary manner;
               [(2)     a transponder, as defined by Section 228.057,
  that is attached to a vehicle in the manner required by the issuing
  authority;
               [(3)     a wheelchair lift or wheelchair carrier that is
  attached to a vehicle in a normal or customary manner;
               [(4)  a trailer being towed by a vehicle; or
               [(5)     a bicycle rack that is attached to a vehicle in a
  normal or customary manner.
         [(c)     A court may dismiss a charge brought under Subsection
  (a)(3), (5), (6), or (7) if the defendant:
               [(1)     remedies the defect before the defendant's first
  court appearance; and
               [(2)  pays an administrative fee not to exceed $10.
         [(f)     An offense under Subsection (a)(4) is a Class B
  misdemeanor.]
         SECTION 40.160.  Subchapter K, Chapter 502, Transportation
  Code, as added by this Act, is amended by adding Sections 502.476,
  502.477, 502.478, and 502.479 to read as follows:
         Sec. 502.476.  FOREIGN COMMERCIAL REGISTRATION; OFFENSE. A
  person who violates Section 502.093 commits an offense.
         Sec. 502.477.  NONRESIDENT-OWNED VEHICLES USED TO TRANSPORT
  AGRICULTURAL PRODUCT; OFFENSE. (a) A person operating a vehicle
  under a permit issued under Section 502.092 commits an offense if
  the person:
               (1)  transports farm products to a place of market,
  storage, or processing or a railhead or seaport that is farther from
  the place of production or point of entry, as appropriate, than the
  distance provided for in the permit; or
               (2)  follows a route other than that prescribed by the
  department.
         (b)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $25 or more than $200.
         Sec. 502.478.  COMMERCIAL MOTOR VEHICLE USED PRIMARILY FOR
  AGRICULTURAL PURPOSES; OFFENSE. An offense under Section 502.432
  is a misdemeanor punishable by a fine of not less than $25 or more
  than $200.
         Sec. 502.479.  SEASONAL AGRICULTURAL VEHICLE; OFFENSE. A
  person issued a registration under Section 502.432 commits an
  offense if the person, during the registration period, uses the
  truck-tractor or commercial motor vehicle for a purpose other than
  to transport a seasonal agricultural product.
         SECTION 40.161.  Section 520.014, Transportation Code, is
  transferred to Subchapter K, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.480, Transportation
  Code, and amended to read as follows:
         Sec. 502.480  [520.014].  VIOLATION BY COUNTY
  ASSESSOR-COLLECTOR; PENALTY. (a) A county assessor-collector
  commits an offense if the county assessor-collector knowingly
  accepts an application for the registration of a motor vehicle
  that:
               (1)  has had the original motor number or vehicle
  identification number removed, erased, or destroyed; and
               (2)  does not bear a motor number or vehicle
  identification number assigned by the department.
         (b)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $10 and not more than $50.
         SECTION 40.162.  Chapter 502, Transportation Code, is
  amended by adding Subchapter L to read as follows:
  SUBCHAPTER L. REGISTRATION AND TRANSFER OF USED VEHICLES
         SECTION 40.163.  Section 502.451, Transportation Code, is
  transferred to Subchapter L, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.491, Transportation
  Code, and amended to read as follows:
         Sec. 502.491  [502.451].  TRANSFER OF VEHICLE REGISTRATION
  [AND REMOVAL OF LICENSE PLATES].  (a)  On the sale or transfer of a
  motor vehicle [to a dealer], [as defined by Section 503.001, who
  holds a general distinguishing number issued under Chapter 503, the
  dealer shall remove each license plate and] the registration
  insignia issued for the motor vehicle shall be removed.
         [(a-1)     On a sale or transfer of a motor vehicle to a person
  that does not hold a general distinguishing number issued under
  Chapter 503, the seller or transferor may remove each license plate
  and the registration insignia issued for the motor vehicle.]
         (b)  [A license plate removed from a motor vehicle under
  Subsection (a) or (a-1) must be:
               [(1)     disposed of in the manner specified by the
  department; or
               [(2)     transferred to another vehicle owned by the
  seller or transferor as provided by Section 502.452.
         [(c)]  The part of the registration period remaining at the
  time of the sale or transfer shall continue with the vehicle being
  sold or transferred and does not transfer with the license plates or
  registration validation insignia.  To continue the remainder of
  the registration period, the purchaser or transferee must file the
  documents required under Section 501.145 [520.031].
         SECTION 40.164.  Section 502.454, Transportation Code, is
  transferred to Subchapter L, Chapter 502, Transportation Code, as
  added by this Act, renumbered as Section 502.492, Transportation
  Code, and amended to read as follows:
         Sec. 502.492  [502.454].  TEMPORARY PERMIT FOR A VEHICLE
  PURCHASED [IN A PRIVATE PARTY TRANSACTION]. (a) A purchaser [or
  transferee] may obtain from the department a temporary
  [single-trip] permit to operate a motor vehicle:
               (1)  that is subject to registration in this state;
               (2)  from which the license plates and the registration
  insignia have been removed as authorized by Section 502.491
  [502.451(a-1)]; and
               (3)  that is not authorized to travel on a public
  roadway because the required license plates and the registration
  insignia are not attached to the vehicle.
         (b)  The department may issue the permit in accordance with
  this section.
         (c)  A permit issued under this section is valid for one trip
  between the point of origin and the destination and those
  intermediate points specified in the permit.
         (d)  A permit issued under this section may not be valid for
  longer than a five-day period.
         (e)  A person may obtain a permit under this section by
  applying, as [on a form] provided by the department, to the
  department.  Application may be made using the department's
  Internet website.
         (f)  A person is eligible to receive only one permit under
  this section for a motor vehicle.
         (g)  A permit receipt issued under this section must be in
  [on] a manner [form] provided by the department. The receipt must
  contain the information required by this section and shall be
  carried in the vehicle at all times during which it is valid.
         (h)  The department may refuse to issue a permit under this
  section for any vehicle if in the department's opinion the
  applicant has been involved in operations that constitute an abuse
  of the privilege granted under this section.
         SECTION 40.165.  Section 504.001(a), Transportation Code,
  is amended to read as follows:
         (a)  In this chapter:
               (1)  [,] "commission" and "director" have the meanings
  assigned by Section 201.001; and
               (2)  "seller" and "purchaser" have the meanings
  assigned by Section 501.002.
         SECTION 40.166.  Section 504.004, Transportation Code, is
  renumbered as Section 504.0011, Transportation Code, and amended to
  read as follows:
         Sec. 504.0011  [504.004].  RULES [AND FORMS]. The
  commission may adopt rules [and the department may issue forms] to
  implement and administer this chapter.
         SECTION 40.167.  Section 504.002, Transportation Code, is
  amended to read as follows:
         Sec. 504.002.  [PROVISIONS OF] GENERAL PROVISIONS
  [APPLICABILITY]. Unless expressly provided by this chapter or by
  department rule:
               (1)  except for license plates specified as exempt,
  [any vehicle is eligible to be issued specialty license plates,
  provided that the department may vary the design of a license plate
  to accommodate or reflect its use on a motor vehicle other than a
  passenger car or light truck;
               [(2)     an application for specialty license plates must
  be submitted in the manner specified by the department, provided
  that if issuance of a specialty license plate is limited to
  particular persons or motor vehicles, the application must be
  accompanied by evidence satisfactory to the department that the
  applicant or the applicant's vehicle is eligible;
               [(3)]  the fee for issuance of a [specialty] license
  plate, including replacement plates, is in addition to each other
  fee that is paid for [or] at the time of the registration of the
  motor vehicle and shall be deposited to the credit of the state
  highway fund;
               (2)  [(4)     each fee described by this chapter is an
  annual fee, provided that the department may prorate the fee for a
  specialty license plate fee on a monthly basis to align the license
  plate fee to the registration period for the motor vehicle for which
  the license plate was issued, and if a fee is prorated the
  allocation of the fee by this chapter to an account or fund shall be
  prorated in proportion;
               [(5)]  the department is the exclusive owner of the
  design of each [specialty] license plate;
               (3)  [(6)     the director may refuse to issue a specialty
  license plate with a design or alphanumeric pattern that the
  director considers potentially objectionable to one or more members
  of the public and the director's refusal may not be overturned in
  the absence of an abuse of discretion;
               [(7)     for each specialty license plate that is issued
  through a county tax assessor-collector and for which the
  department is allocated a portion of a fee for administrative
  costs, the department shall credit 50 cents from its administrative
  costs to the county treasurer of the applicable county, who shall
  credit the money to the general fund of the county to defray the
  costs to the county of administering this chapter;
               [(8)]  if a [specialty] license plate is lost, stolen,
  or mutilated, an application for a replacement plate must be
  accompanied by the fee prescribed by Section 502.060
  [502.184(a)(2);
               [(9)     if the owner of a motor vehicle for which a
  specialty license plate is issued disposes of the vehicle or for any
  reason ceases to be eligible for that specialty license plate, the
  owner shall return the specialty license plate to the department];
  and
               (4)  the department shall prepare the designs and
  specifications of license plates [(10)     a person who is issued a
  specialty license plate may not transfer it to another person or
  vehicle without first receiving approval from the department].
         SECTION 40.168.  Section 504.103, Transportation Code, is
  transferred to Subchapter A, Chapter 504, Transportation Code,
  renumbered as Section 504.005, Transportation Code, and amended to
  read as follows:
         Sec. 504.005  [504.103].  DESIGN AND ALPHANUMERIC PATTERN.
  The department has sole control over the design, typeface, color,
  and alphanumeric pattern for all [a personalized] license plates
  [plate].
         SECTION 40.169.  Subchapter A, Chapter 504, Transportation
  Code, is amended by adding Section 504.006 to read as follows:
         Sec. 504.006.  DESIGN OF LICENSE PLATES. (a) The department
  shall prepare the designs and specifications of license plates and
  devices selected by the commission to be used as a unique
  identifier.
         (b)  The department shall design each license plate to
  include a design at least one-half inch wide that represents in
  silhouette the shape of Texas and that appears between letters and
  numerals. The department may omit the silhouette of Texas from
  specially designed license plates.
         (c)  To promote highway safety, each license plate shall be
  made with a reflectorized material that provides effective and
  dependable brightness for the period for which the plate is issued.
         SECTION 40.170.  Section 502.053, Transportation Code, is
  transferred to Subchapter A, Chapter 504, Transportation Code,
  renumbered as Section 504.007, Transportation Code, and amended to
  read as follows:
         Sec. 504.007  [502.053].  COST OF MANUFACTURING [LICENSE
  PLATES OR REGISTRATION INSIGNIA]. (a) The Texas Department of
  Transportation shall reimburse the Texas Department of Criminal
  Justice for the cost of manufacturing license plates or
  registration insignia as [the license plates or insignia and] the
  invoices [invoice] for the license plates or insignia are delivered
  to the Texas Department of Transportation.
         (b)  When manufacturing is started, the Texas Department of
  Criminal Justice and [,] the Texas Department of Transportation,
  [and the comptroller,] after negotiation, shall set the price to be
  paid for each license plate or insignia.  The price must be
  determined from:
               (1)  the cost of metal, paint, and other materials
  purchased;
               (2)  the inmate maintenance cost per shift [day];
               (3)  overhead expenses;
               (4)  miscellaneous charges; and
               (5)  a previously agreed upon [approved] amount of
  profit for the work.
         [(c)     The annual profit received by the Texas Department of
  Criminal Justice from all contracts for the manufacturing of
  license plates or related manufacturing may not be less than the
  profit received by the Texas Department of Corrections for
  manufacturing license plates for use in 1974.]
         SECTION 40.171.  Subchapter A, Chapter 504, Transportation
  Code, is amended by adding Sections 504.008 and 504.009 to read as
  follows:
         Sec. 504.008.  REPLACEMENT OF LICENSE PLATE. (a) The owner
  of a registered motor vehicle may obtain replacement license plates
  through the county assessor-collector by:
               (1)  certifying that the replacement plates will not be
  used on any other vehicle owned or operated by the person making the
  statement;
               (2)  paying a fee of $5 plus the fees required by
  Sections 502.356(a) and 502.360 for each set of replacement license
  plates, unless otherwise specified by law; and
               (3)  returning each replaced plate in the owner's
  possession.
         (b)  A fee is not required under this section if the
  replacement fee has been paid under Section 502.060. No fee is
  required for the replacement of specialized license plates issued
  under Section 504.202, 504.305, 504.308, 504.315(c), (e), or (f),
  504.513, or 504.515.
         (c)  The owner of a vehicle issued license plates approved
  under Section 504.501(b) or 504.502(c) may obtain approval of
  another set of license plates as provided by Section 504.501 or
  504.502, respectively. The fee for approval of replacement license
  plates is $5.
         (d)  Replacement license plates may not be issued except in
  compliance with this section.
         (e)  A county assessor-collector shall retain $2.50 of each
  fee collected under this section and shall report and send the
  remainder to the department as provided by Section 502.060.
         (f)  Replacement license plates may be used in the
  registration year in which the plates are issued and during each
  succeeding year of the six-year period as prescribed by Section
  502.059(b) if the registration insignia is properly displayed on
  the vehicle.
         (g)  Subsection (f) does not apply to the issuance of
  specialized license plates for limited distribution, including
  state official license plates, exempt plates for governmental
  entities, and temporary registration plates.
         (h)  The owner of a vehicle listed in Section 502.059(f) or
  504.011(d) may obtain replacement plates and a replacement
  registration insignia by paying a fee of $5 plus the fees required
  by Sections 502.356(a) and 502.360(a).
         Sec. 504.009.  SPECIALTY LICENSE PLATES. (a) The
  department shall prepare the designs and specifications of
  specialty license plates.
         (b)  Any motor vehicle other than a vehicle manufactured for
  off-highway use only is eligible to be issued specialty license
  plates, provided that the department may vary the design of a
  license plate to accommodate or reflect its use on a motor vehicle
  other than a passenger car or light truck.
         (c)  An application for specialty license plates must be
  submitted in the manner specified by the department, provided that
  if issuance of a specialty license plate is limited to particular
  persons or motor vehicles, the application must be accompanied by
  evidence satisfactory to the department that the applicant or the
  applicant's vehicle is eligible.
         (d)  Each fee described by this chapter is an annual fee,
  provided that the department may prorate the fee for a specialty
  license plate fee on a monthly basis to align the license plate fee
  to the registration month for the motor vehicle for which the
  license plate was issued, and if a fee is prorated the allocation of
  the fee by this chapter to an account or fund shall be prorated in
  proportion.
         (e)  The director or the director's designee may refuse to
  issue a specialty license plate with a design or alphanumeric
  pattern that the director or designee considers potentially
  objectionable to one or more members of the public and the director
  or designee's refusal may not be overturned in the absence of an
  abuse of discretion.
         (f)  The department is the exclusive owner of the design of
  each license plate.
         (g)  For each specialty license plate that is issued by a
  county assessor-collector and for which the department is allocated
  a portion of the fee for administrative costs, the department shall
  credit 50 cents from its administrative costs to the county
  treasurer of the applicable county, who shall credit the money to
  the general fund of the county to defray the costs to the county of
  administering this chapter.
         (h)  A replacement license plate of a specialty license plate
  must be accompanied by an application for a replacement plate and
  the fee prescribed by Section 504.008.
         (i)  If the owner of a motor vehicle for which a specialty
  license plate is issued disposes of the vehicle or for any reason
  ceases to be eligible for that specialty license plate, the owner
  shall return the specialty license plate to the department.
         (j)  A person who is issued a specialty license plate may not
  transfer the plate to another person or vehicle unless the
  department approves the transfer.
         SECTION 40.172.  Section 504.003, Transportation Code, is
  renumbered as Section 504.010, Transportation Code, and amended to
  read as follows:
         Sec. 504.010  [504.003].  SOUVENIR LICENSE PLATES. (a) The
  department may issue a souvenir version of any specialty license
  plate for any vehicle[, including a motorcycle].
         (b)  The fee for a single souvenir license plate is $20.  The
  fee shall be deposited to the credit of the state highway fund
  unless the souvenir license plate is a replica of a specialty
  license plate issued under Subchapter G or I for which the fee is
  deposited to an account other than the state highway fund, in which
  case:
               (1)  $10 of the fee for the souvenir license plate shall
  be deposited to the credit of the designated account; and
               (2)  $10 of the fee for the souvenir license plate shall
  be deposited to the credit of the state highway fund.
         (c)  If the souvenir license plate is personalized, the fee
  for the plate is $40.  Of the fee:
               (1)  $20 shall be deposited to the credit of the state
  highway fund;
               (2)  $10 shall be deposited to the credit of the
  designated account if the souvenir license plate is a replica of a
  specialty license plate issued under Subchapter G or I for which the
  fee is deposited to a designated account other than the state
  highway fund; and
               (3)  the remainder shall be deposited to the credit of
  the general revenue fund.
         (d)  A souvenir license plate may not be used on a motor
  vehicle[, including a motorcycle,] and is not an insignia of
  registration for a motor vehicle. Each souvenir license plate must
  be identified by the department in a way that identifies it to law
  enforcement officers and others as a souvenir license plate.
         (e)  A beneficiary of a specialty license plate issued under
  Subchapter G or I, as designated by the applicable section of those
  subchapters, may purchase the specialty license plates, in minimum
  quantity amounts determined by the department [boxes of 25,] for
  use or resale by the beneficiary.  The beneficiary shall pay the
  required fee per plate, less the amount of the fee that would be
  deposited to the credit of the designated account.
         SECTION 40.173.  Subchapter A, Chapter 504, Transportation
  Code, is amended by adding Section 504.011 to read as follows:
         Sec. 504.011.  ISSUANCE OF LICENSE PLATE. (a) On payment of
  the prescribed fee, an applicant for motor vehicle registration
  shall be issued a license plate or set of plates.
         (b)  Subject to Subchapter I, the department shall issue only
  one license plate or set of plates for a vehicle during a seven-year
  period.
         (c)  On application and payment of the prescribed fee for a
  renewal of the registration of a vehicle for the first through the
  seventh year the department shall issue a registration insignia for
  the validation of the license plate or plates to be attached as
  provided by Chapter 502.
         (d)  The registration insignia for validation of a license
  plate shall be attached to the rear license plate of the vehicle, if
  the vehicle is:
               (1)  a motorcycle;
               (2)  machinery used exclusively to drill water wells or
  construction machinery for which a distinguishing license plate has
  been issued under Section 502.146; or
               (3)  oil well servicing, oil clean out, or oil well
  drilling machinery or equipment for which a distinguishing license
  plate has been issued under Subchapter G, Chapter 623.
         SECTION 40.174.  Section 504.101(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue personalized license plates.
  The department may not issue more than one set of license plates
  with the same alphanumeric pattern. All personalized license
  plates issued before January 1, 2013, may continue to be renewed in
  accordance with the law at the time of initial issuance.
         SECTION 40.175.  Sections 504.201(b), (d), and (g),
  Transportation Code, are amended to read as follows:
         (b)  The department shall issue specialty license plates for
  a motor vehicle that:
               (1)  has a gross vehicle weight [manufacturer's rated
  carrying capacity] of 18,000 pounds [two tons] or less; and
               (2)  is regularly operated for noncommercial use by or
  for the transportation of a person with a permanent disability.
         (d)  The initial application for specialty license plates
  under this section must be accompanied by a written statement from a
  physician who is licensed to practice medicine in this state or in a
  state adjacent to this state or who is authorized by applicable law
  to practice medicine in a hospital or other health facility of the
  Department of Veterans Affairs. If the applicant has a mobility
  problem caused by a disorder of the foot, the written statement may
  be issued by a person licensed to practice podiatry in this state or
  a state adjacent to this state. In this subsection, "podiatry" has
  the meaning assigned by Section 681.001. The statement must
  certify that the person making the application or on whose behalf
  the application is made is legally blind or has a mobility problem
  that substantially impairs the person's ability to ambulate. The
  statement must also certify whether a mobility problem is temporary
  or permanent. A written statement is not required as acceptable
  medical proof if:
               (1)  the person with a disability:
                     (A)  has had a limb, hand, or foot amputated; or
                     (B)  must use a wheelchair; and
               (2)  the applicant executes a statement [and the county
  assessor-collector processing the application execute an
  affidavit] attesting to the person's disability before the county
  assessor-collector.
         (g)  In addition to a license plate issued under this
  section, an eligible person is entitled to be issued a set of the
  license plates for each motor vehicle owned by the person that has a
  gross vehicle weight [carrying capacity] of 18,000 pounds [two
  tons] or less and is equipped with special equipment that:
               (1)  is designed to allow a person who has lost the use
  of one or both of the person's legs to operate the vehicle; and
               (2)  is not standard equipment on that type of vehicle
  for use by a person who has use of both legs.
         SECTION 40.176.  Section 504.202(b), Transportation Code,
  is amended to read as follows:
         (b)  A veteran of the United States armed forces is entitled
  to register, for the person's own use, two motor vehicles under this
  section if:
               (1)  the person has suffered, as a result of military
  service:
                     (A)  at least a 50 percent service-connected
  disability; or
                     (B)  a 40 percent service-connected disability
  because of the amputation of a lower extremity;
               (2)  the person receives compensation from the United
  States because of the disability; and
               (3)  the motor vehicle:
                     (A)  is owned by the person; and
                     (B)  has a gross vehicle weight [manufacturer's
  rated carrying capacity] of 18,000 pounds [two tons] or less.
         SECTION 40.177.  Section 504.203(b), Transportation Code,
  is amended to read as follows:
         (b)  An application for license plates under this section
  must be accompanied by a written statement acknowledged [signed] by
  the administrator or manager of the institution, facility, or
  retirement community certifying that the institution, facility, or
  retirement community regularly transports, as a part of the
  services that the institution, facility, or retirement community
  provides, one or more eligible persons who reside in the
  institution, facility, or retirement community. The department
  shall determine the eligibility of the institution, facility, or
  retirement community on the evidence the applicant provides.
         SECTION 40.178.  Section 504.3011, Transportation Code, is
  amended to read as follows:
         Sec. 504.3011.  DESIGN OF CERTAIN LICENSE PLATES FOR THE
  MILITARY. [(a)     License plates issued under Section 504.303 must
  at a minimum bear a color depiction of the emblem of the appropriate
  branch of the United States armed forces.
         [(b)     License plates issued under Section 504.308(a) or
  504.315(e), (f), or (g) must at a minimum bear a color depiction of
  the appropriate medal.
         [(c)]  The department shall design military license plates
  that bear a color depiction of the emblem of the appropriate branch
  of the United States armed forces or a color depiction of the
  appropriate medal as provided by the United States Department of
  Defense [to which this section applies in consultation with
  veterans organizations].
         SECTION 40.179.  Section 504.315(d), Transportation Code,
  is amended to read as follows:
         (d)  The department shall issue specialty license plates for
  survivors of the attack on Pearl Harbor on December 7, 1941. The
  license plates must include the words "Pearl Harbor Survivor" [and
  must be consecutively numbered]. A person is eligible if the
  person:
               (1)  served in the United States armed forces;
               (2)  was stationed in the Hawaiian Islands on December
  7, 1941; and
               (3)  survived the attack on Pearl Harbor on December 7,
  1941.
         SECTION 40.180.  Subchapter E, Chapter 504, Transportation
  Code, is amended by adding Section 504.400 to read as follows:
         Sec. 504.400.  FEES FOR CERTAIN RESTRICTED PLATES. The
  department shall issue, without charge, not more than three sets of
  specialty license plates under this subchapter.
         SECTION 40.181.  Section 504.401(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue [without charge] specialty
  license plates that include the words "State Official" to a state
  official. [The license plates must include the words "State
  Official."]
         SECTION 40.182.  Section 504.402(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue [without charge] specialty
  license plates to [for] members of congress, which [. License
  plates issued under this section] must include the words "U.S.
  Congress."
         SECTION 40.183.  Section 504.403(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue [without charge] specialty
  license plates for a current or visiting state or federal judge.
  The license plates must include the words "State Judge" or "U.S.
  Judge," as appropriate.
         SECTION 40.184.  Section 504.403(d)(2), Transportation
  Code, is amended to read as follows:
               (2)  "State judge" means:
                     (A)  a justice of the supreme court;
                     (B)  a judge of the court of criminal appeals;
                     (C)  a judge of a court of appeals of this state;
                     (D)  a district court judge;
                     (E)  a presiding judge of an administrative
  judicial district; or
                     (F)  a statutory county court judge.
         SECTION 40.185.  Section 504.404, Transportation Code, is
  amended to read as follows:
         Sec. 504.404.  FEDERAL ADMINISTRATIVE LAW JUDGES.
  [(a)]  The department shall issue [without charge] specialty
  license plates to [for] current federal administrative law judges
  that [. The license plates shall] bear the words "U.S. A. L.
  Judge."
         [(b)     A person may be issued three sets of license plates
  under this section.]
         SECTION 40.186.  Section 504.405(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue [without charge] specialty
  license plates for current county judges of this state that[. The
  license plates shall] bear the words "County Judge."
         SECTION 40.187.  Section 504.406, Transportation Code, is
  amended to read as follows:
         Sec. 504.406.  TEXAS CONSTABLES. The department shall issue
  [without charge] specialty license plates for Texas constables
  that[. The license plates shall] bear the words "Texas Constable."
         SECTION 40.188.  Section 504.412, Transportation Code, is
  renumbered as Section 504.4061, Transportation Code, and is amended
  to read as follows:
         Sec. 504.4061  [504.412].  FOREIGN ORGANIZATION VEHICLES.
  [(a)]  The department shall issue specialty license plates for an
  instrumentality established by a foreign government recognized by
  the United States before January 1, 1979, that is without official
  representation or diplomatic relations with the United States. The
  license plates must include the words "Foreign Organization" [and
  shall remain valid for five years.
         [(b)     A person entitled to specialty license plates under
  this section may register the vehicle without payment of any fee
  paid for or at the time of registration].
         SECTION 40.189.  Section 504.509, Transportation Code, is
  transferred to Subchapter E, Chapter 504, Transportation Code, and
  renumbered as Section 504.414, Transportation Code, to read as
  follows:
         Sec. 504.414  [504.509].  VEHICLES CARRYING MOBILE AMATEUR
  RADIO EQUIPMENT. (a)  The department shall issue specialty license
  plates for a person who holds an amateur radio station license
  issued by the Federal Communications Commission and who operates
  receiving and transmitting mobile amateur radio equipment. The
  license plates shall include the person's amateur call letters as
  assigned by the Federal Communications Commission. A person may
  register more than one vehicle equipped with mobile amateur radio
  equipment under this section, and the department shall issue
  license plates that include the same amateur call letters for each
  vehicle.
         (b)  The fee for issuance of the license plates is $2 for the
  first year and $1 for each subsequent year.
         SECTION 40.190.  The heading to Subchapter F, Chapter 504,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER F. SPECIALTY LICENSE PLATES WITH RESTRICTED
  DISTRIBUTION AND REGULAR LICENSE PLATE FEES [FOR CERTAIN VEHICLES]
         SECTION 40.191.  The heading to Section 504.501,
  Transportation Code, is amended to read as follows:
         Sec. 504.501.  CLASSIC MOTOR VEHICLES AND TRAVEL TRAILERS.
         SECTION 40.192.  Section 504.501(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue specialty license plates for
  a motor vehicle that is at least 25 years old. The license plates
  must include the word "Classic" [words "Classic Auto," "Classic
  Motorcycle," or "Classic Truck"] or a similar designation, as
  appropriate.
         SECTION 40.193.  The heading to Section 504.502,
  Transportation Code, is amended to read as follows:
         Sec. 504.502.  ANTIQUE [CERTAIN EXHIBITION] VEHICLES;
  OFFENSE.
         SECTION 40.194.  Sections 504.502(b) and (g),
  Transportation Code, are amended to read as follows:
         (b)  The license plates must include the words "Antique
  Vehicle." [words "Antique Auto," "Antique Truck," "Antique
  Motorcycle," or "Military Vehicle," as appropriate.]
         (g)  A person entitled to specialty license plates or to
  department approval under this section may register the vehicle
  without payment of any fees paid for or at the time of registration
  except the fee for the license plate. [An owner of a vehicle
  registered under this subsection who violates this section commits
  an offense. An offense under this section is a misdemeanor
  punishable by a fine of not less than $5 or more than $200.]
         SECTION 40.195.  Section 504.503, Transportation Code, is
  amended to read as follows:
         Sec. 504.503.  MUNICIPAL, MOTOR, AND PRIVATE BUSES.
  [(a)]  The department shall issue without charge specialty license
  plates for municipal buses, motor buses, and private buses. The
  license plates must include the words "City Bus," "Motor Bus," or
  "Private Bus," as appropriate.
         [(b)  In this section, "private bus" means a bus that:
               [(1)  is not operated for hire; and
               [(2)     is not classified as a municipal bus or a motor
  bus.]
         SECTION 40.196.  The heading to Section 504.506,
  Transportation Code, is amended to read as follows:
         Sec. 504.506.  [CERTAIN] LOG LOADER VEHICLES.
         SECTION 40.197.  (a) Section 504.510(d), Transportation
  Code, is amended to read as follows:
         (d)  This section applies only to an owner of a golf cart who
  resides:
               (1)  on real property that is owned or under the control
  of the United States Corps of Engineers and is required by that
  agency to register the owner's golf cart under this chapter; and
               (2)  in a county that borders another state and has a
  population of more than 110,000 but less than 140,000 [111,000].
         (b)  This section takes effect September 1, 2009.
         SECTION 40.198.  Sections 504.407, 504.408, 504.409,
  504.410, and 504.411, Transportation Code, are transferred to
  Subchapter F, Chapter 504, Transportation Code, renumbered as
  Sections 504.511, 504.512, 504.513, 504.514, and 504.515,
  Transportation Code, and amended to read as follows:
         Sec. 504.511  [504.407].  PEACE OFFICERS WOUNDED OR KILLED
  IN LINE OF DUTY. (a)  The department shall issue specialty license
  plates for:
               (1)  a person wounded in the line of duty as a peace
  officer; or
               (2)  a surviving spouse, parent, brother, sister, or
  adult child, including an adopted child or stepchild, of a person
  killed in the line of duty as a peace officer.
         (b)  License plates issued under this section must include
  the words "To Protect and Serve" above an insignia depicting a
  yellow rose superimposed over the outline of a badge.
         (c)  The fee for issuance of the license plates is $20.
         (d)  In this section, "peace officer" has the meaning
  assigned by Section 1.07, Penal Code.
         Sec. 504.512  [504.408].  GOLD STAR MOTHER, SPOUSE, OR
  FAMILY MEMBER. (a) The department shall issue a specialty license
  plate for the mother, surviving spouse, or immediate family member
  of a person who died while serving in the United States armed
  forces.  License plates issued under this section must include the
  words "Gold Star Mother," "Gold Star Spouse," or "Gold Star Family"
  and a gold star.  A person may not be issued more than one set of the
  license plates at a time.
         (a-1)  In this section "immediate family member" means the
  parent, child, or sibling of a person who died while serving in the
  United States armed forces.
         (b)  The fee for issuance of the license plates is $10.
         Sec. 504.513  [504.409].  VOLUNTEER FIREFIGHTERS. (a) The
  department shall issue specialty license plates for volunteer
  firefighters certified by:
               (1)  the Texas Commission on Fire Protection; or
               (2)  the State Firemen's and Fire Marshals' Association
  of Texas.
         (b)  The fee for issuance of the license plates is $4.
         (c)  A person may be issued only one set of the license
  plates.
         Sec. 504.514  [504.410].  EMERGENCY MEDICAL SERVICES
  PERSONNEL. (a) The department shall issue specialty license
  plates for emergency medical services personnel certified by the
  [Texas] Department of State Health Services under Subchapter C,
  Chapter 773, Health and Safety Code.
         (b)  The fee for issuance of the license plates is $8.
         (c)  A person may be issued only one set of the license
  plates.
         Sec. 504.515  [504.411].  HONORARY CONSULS. (a) The
  department shall issue specialty license plates for a person who is
  an honorary consul authorized by the United States to perform
  consular duties. License plates issued under this section must
  include the words "Honorary Consul."
         (b)  The fee for issuance of the license plates is $40.
         SECTION 40.199.  Subchapter F, Chapter 504, Transportation
  Code, is amended by adding Section 504.516 to read as follows:
         Sec. 504.516.  RENTAL TRAILER OR TRAVEL TRAILER FEE:
  TRAILER OR SEMITRAILER. (a) The department may issue specially
  designed license plates for rental trailers and travel trailers
  that include, as appropriate, the words "rental trailer" or "travel
  trailer."
         (b)  In this section:
               (1)  "Rental fleet" means vehicles that are designated
  in the manner prescribed by the department as a rental fleet.
               (2)  "Rental trailer" means a utility trailer.
               (3)  "Travel trailer" has the meaning assigned by
  Section 501.002.
         SECTION 40.200.  Section 504.614(a), Transportation Code,
  is amended to read as follows:
         (a)  The department may issue specialty license plates that
  include the name and insignia of a professional sports team located
  in this state. The department shall design the license plates in
  consultation with the professional sports team and may enter a
  trademark license with the professional sports team or its league
  to implement this section. A license plate may be issued under this
  section only for a professional sports team that:
               (1)  certifies to the department that the requirements
  of Section 504.702 are met [it has determined that at least 3,500
  persons will apply for the plates]; and
               (2)  plays its home games in a facility constructed or
  operated, in whole or in part, with public funds.
         SECTION 40.201.  Section 504.615(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue specialty license plates
  that include the name and insignia of a college. The department
  shall design the license plates in consultation with the applicable
  college. The department may issue a license plate under this
  section only for a college that certifies to the department that the
  requirements of Section 504.702 are met [it has determined that at
  least 1,500 persons will apply for the plates].
         SECTION 40.202.  Section 504.616(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue specialty license plates
  including the words "Texas Reads" that ["Texas Reads." The
  department shall design the license plates to] incorporate one or
  more submissions from middle school students in a competition
  conducted by the department.
         SECTION 40.203.  Section 504.647(a), Transportation Code,
  is amended to read as follows:
         (a)  The department shall issue Fight Terrorism specialty
  license plates that [. The license plates shall] include a
  pentagon-shaped border surrounding:
               (1)  the date "9-11-01" with the likeness of the World
  Trade Center towers forming the "11";
               (2)  the likeness of the United States flag; and
               (3)  the words "Fight Terrorism."
         SECTION 40.204.  Section 504.413, Transportation Code, is
  transferred to Subchapter G, Chapter 504, Transportation Code, and
  renumbered as Section 504.659, Transportation Code, to read as
  follows:
         Sec. 504.659  [504.413].  MEMBERS OF AMERICAN LEGION. (a)
  The department shall issue specialty license plates for members of
  the American Legion. The license plates shall include the words
  "Still Serving America" and the emblem of the American Legion. The
  department shall design the license plates in consultation with the
  American Legion.
         (b)  The fee for the license plates is $30.
         (c)  After deduction of $8 to reimburse the department for
  its administrative costs, the remainder of the fee for issuance of
  the license plates shall be deposited to the credit of the American
  Legion, Department of Texas account in the state treasury. Money in
  the account may be used only by the Texas Veterans Commission in
  making grants to the American Legion Endowment Fund for
  scholarships and youth programs sponsored by the American Legion,
  Department of Texas.
         SECTION 40.205.  Section 504.702, Transportation Code, is
  amended by amending Subsection (b) and adding Subsections (e) and
  (f) to read as follows:
         (b)  The department may manufacture the specialty license
  plates only if a request for manufacture of the license plates is
  filed with the department.  The request must be:
               (1)  made in [on] a manner prescribed [form adopted] by
  the department;
               (2)  filed before the fifth anniversary of the
  effective date of the law that authorizes the issuance of the
  specialty license plates; and
               (3)  accompanied by[:
                     [(A)]  a deposit of $8,000[; or
                     [(B)     applications for issuance of at least 1,900
  sets of the license plates plus the fees for issuance of that number
  of sets].
         (e)  The department may issue license plates under:
               (1)  Section 504.614 for a particular professional
  sports team only if $8,000 has been deposited with the department
  for that sports team; or
               (2)  Section 504.615 for a particular institution of
  higher education or private college or university only if $8,000
  has been deposited with the department for that institution,
  college, or university.
         (f)  Money deposited with the department under Subsection
  (b)(3) or (e) shall be returned by the department to the person who
  made the deposit after 800 sets of plates have been issued.
         SECTION 40.206.  Sections 504.801(a) and (b),
  Transportation Code, are amended to read as follows:
         (a)  The department may create new specialty license plates
  on its own initiative or on receipt of an application from a
  potential sponsor. A new specialty license plate created under
  this section must comply with each requirement of Section 504.702
  unless the license is created by the department on its own
  initiative. The department may permit a specialty license plate
  created under this section to be personalized. The redesign of an
  existing specialty license plate at the request of a sponsor shall
  be treated like the issuance of a new specialty license plate[,
  except that the department may require a lower deposit amount to
  reflect the actual costs of redesigning the license plate].
         (b)  Any nonprofit entity [person] may submit an application
  to the department to sponsor a new specialty license plate [by
  submitting an application to the department]. An application may
  nominate a state agency to receive funds derived from the issuance
  of the license plates. The application may also identify uses to
  which those funds should be appropriated.
         SECTION 40.207.  Section 504.851, Transportation Code, is
  amended by amending Subsections (a), (b), (c), (d), (f), (g), and
  (h) and adding Subsection (n) to read as follows:
         (a)  The department shall enter into a contract with the
  private vendor whose proposal is most advantageous to the state, as
  determined from competitive sealed proposals that satisfy the
  requirements of this section:
               (1)  [,] for the exclusive marketing and sale of
  souvenir or[:
               [(1)]  personalized license plates authorized by
  Section 504.101 with the exception that personalized plates issued
  before September 1, 2009, may be renewed in accordance with the law
  at that time; or
               (2)  for the marketing and sale of, with the agreement
  of the private vendor, other specialty license plates authorized by
  this subchapter.
         (b)  Instead of the fees established by Section 504.101(c),
  the commission by order [rule] shall establish fees for the
  issuance or renewal of personalized license or personalized
  souvenir plates that are marketed and sold by the private
  vendor.  Fees must be reasonable and not less than the greater of:
               (1)  the amounts necessary to allow the department to
  recover all reasonable costs to the department associated with the
  evaluation of the competitive sealed proposals received by the
  department and with the implementation and enforcement of the
  contract, including direct, indirect, and administrative costs; or
               (2)  the amount established by Section 504.101(c).
         (c)  The commission by order [rule] shall establish standard
  [the] fees for the issuance or renewal of souvenir license plates,
  specialty license plates, or souvenir or specialty license plates
  that are personalized that are marketed and sold by the private
  vendor.  Fees must be reasonable and not less than the amounts
  necessary to allow the department to recover all reasonable costs
  to the department associated with the evaluation of the competitive
  sealed proposals received by the department and with the
  implementation and enforcement of the contract, including direct,
  indirect, and administrative costs.  A fee established under this
  subsection is in addition to:
               (1)  the registration fee and any optional registration
  fee prescribed by this chapter for the vehicle for which specialty
  license plates are issued;
               (2)  any additional fee prescribed by this subchapter
  for the issuance of specialty license plates for that vehicle; and
               (3)  any additional fee prescribed by this subchapter
  for the issuance of personalized license plates for that vehicle.
         (d)  Specialty license or specialty personalized plates may
  be sold for varying periods, including a permanent sale that may be
  made through auction. [At any time as necessary to comply with
  Subsection (b) or (c), the commission may increase or decrease the
  amount of a fee established under the applicable subsection.]
         (f)  The department may approve new design and color
  combinations for specialty or personalized license plates that are
  marketed and sold by a private vendor under a contract entered into
  with the private vendor. Each approved license plate design and
  color combination remains the property of the department.
         (g)  [The department may approve new design and color
  combinations for specialty license plates authorized by this
  chapter, including specialty license plates that may be
  personalized, that are marketed and sold by a private vendor under a
  contract entered into with the private vendor.     Each approved
  license plate design and color combination remains the property of
  the department.] Except as otherwise provided by this chapter,
  this subsection does not authorize a[:
               [(1)     the department to approve a design or color
  combination for a specialty license plate that is inconsistent with
  the design or color combination specified for the license plate by
  the section of this chapter that authorizes the issuance of the
  specialty license plate; or
               [(2)  the] private vendor to market and sell a
  specialty license plate with a design or color combination that is
  issued as a license plate designed for a nonprofit organization
  [inconsistent with the design or color combination specified by
  that section].
         (h)  Subject to the limitations provided by Subsection
  [Subsections (g) and] (g-1), the department may cancel a license
  plate or require the discontinuation of a license plate design or
  color combination that is marketed and sold by a private vendor
  under contract at any time if the department determines that the
  cancellation or discontinuation is in the best interest of this
  state or the motoring public.
         (n)  If the vendor ceases operation, the program may be
  operated temporarily by the department until another vendor is
  selected and commences operation.
         SECTION 40.208.  Chapter 504, Transportation Code, is
  amended by adding Subchapter K to read as follows:
  SUBCHAPTER K. TRANSFER AND REMOVAL OF LICENSE PLATES
         SECTION 40.209.  Section 502.451, Transportation Code, is
  transferred to Subchapter K, Chapter 504, Transportation Code, as
  added by this Act, renumbered as Section 504.901, Transportation
  Code, and amended to read as follows:
         Sec. 504.901  [502.451].  TRANSFER [OF VEHICLE
  REGISTRATION] AND REMOVAL OF LICENSE PLATES. (a) On the sale or
  transfer of a motor vehicle [to a dealer, as defined by Section
  503.001, who holds a general distinguishing number issued under
  Chapter 503, the dealer shall remove] each license plate [and the
  registration insignia] issued for the motor vehicle shall be
  removed.
         [(a-1)     On a sale or transfer of a motor vehicle to a person
  that does not hold a general distinguishing number issued under
  Chapter 503, the seller or transferor may remove each license plate
  and the registration insignia issued for the motor vehicle.]
         (b)  A license plate removed from a motor vehicle under
  Subsection (a) [or (a-1)] must be:
               (1)  transferred to another motor vehicle that is
  titled in the seller's name [disposed of in the manner specified by
  the department]; or
               (2)  transferred to a [another] vehicle that is
  purchased [owned] by the seller [or transferor as provided by
  Section 502.452].
         (c)  To be eligible for transfer, license plates must be
  appropriate for the class of vehicle to which the plates are being
  transferred. If the vehicle is a different classification the
  owner must:
               (1)  pay the applicable title and vehicle registration
  fees;
               (2)  obtain a new registration insignia; and
               (3)  dispose of the license plates in the manner
  specified by the department, or if the applicant fails to remove and
  transfer the license plates, purchase replacement license plates in
  accordance with this chapter. [The part of the registration period
  remaining at the time of the sale or transfer shall continue with
  the vehicle being sold or transferred and does not transfer with the
  license plates or registration validation insignia. To continue
  the remainder of the registration period, the purchaser or
  transferee must file the documents required under Section 520.031.]
         SECTION 40.210.  Chapter 504, Transportation Code, is
  amended by adding Subchapter L to read as follows:
  SUBCHAPTER L. OFFENSES AND PENALTIES
         Sec. 504.941.  ANTIQUE VEHICLES; OFFENSE. (a) A person who
  violates Section 504.502 commits an offense. An offense under this
  section is a misdemeanor punishable by a fine of not less than $5 or
  more than $200.
         (b)  It is an affirmative defense to prosecution under this
  section that at the time of the offense the vehicle was en route to
  or from a location for the purpose of routine maintenance of the
  vehicle.
         Sec. 504.942.  LOG LOADER VEHICLES; PENALTIES. A vehicle
  operated in violation of Section 504.506 is considered to be
  operated or moved while unregistered and is immediately subject to
  the applicable fees and penalties prescribed by this chapter.
         Sec. 504.943.  OPERATION OF VEHICLE WITHOUT LICENSE PLATE.
  (a) A person commits an offense if the person operates on a public
  highway during a registration period:
               (1)  a passenger car, as defined by Section 541.201, or
  commercial motor vehicle that does not display two license plates
  issued by the department and attached to the front and rear of the
  vehicle; or
               (2)  a road tractor, motorcycle, trailer, or
  semitrailer that does not display a license plate assigned by the
  department and attached to the rear of the vehicle.
         (b)  Subsection (a) does not apply to a person who holds a
  general distinguishing number operating a vehicle as provided by
  law.
         (c)  An offense under this section is a misdemeanor
  punishable by a fine not to exceed $200.
         (d)  A court may dismiss a charge brought under Subsection
  (a) if the defendant:
               (1)  remedies the defect before the defendant's first
  court appearance; and
               (2)  pays an administrative fee not to exceed $10.
         SECTION 40.211.  Section 502.408, Transportation Code, is
  transferred to Subchapter L, Chapter 504, Transportation Code, as
  added by this Act, renumbered as Section 504.944, Transportation
  Code, and amended to read as follows:
         Sec. 504.944  [502.408].  OPERATION OF VEHICLE WITH WRONG
  LICENSE PLATE. [(a)] A person commits an offense if the person
  operates, or as the owner permits another to operate, on a public
  highway a motor vehicle that has attached to it a number plate or
  registration insignia issued for a different vehicle. An offense
  under this subsection is a misdemeanor punishable by a fine not to
  exceed $200.
         SECTION 40.212.  Subchapter L, Chapter 504, Transportation
  Code, as added by this Act, is amended by adding Section 504.945 to
  read as follows:
         Sec. 504.945.  WRONG, FICTITIOUS, ALTERED, OR OBSCURED
  LICENSE PLATE. (a) A person commits an offense if the person
  attaches to or displays on a motor vehicle a license plate that:
               (1)  is issued for a different motor vehicle;
               (2)  is issued for the vehicle under any other motor
  vehicle law other than by the department;
               (3)  is assigned for a registration period other than
  the registration period in effect;
               (4)  is fictitious;
               (5)  has blurring or reflective matter that
  significantly impairs the readability of the name of the state in
  which the vehicle is registered or the letters or numbers of the
  license plate number at any time;
               (6)  has an attached illuminated device or sticker,
  decal, emblem, or other insignia that is not authorized by law and
  that interferes with the readability of the letters or numbers of
  the license plate number or the name of the state in which the
  vehicle is registered; or
               (7)  has a coating, covering, protective substance, or
  other material that:
                     (A)  distorts angular visibility or
  detectability;
                     (B)  alters or obscures one-half or more of the
  name of the state in which the vehicle is registered; or
                     (C)  alters or obscures the letters or numbers of
  the license plate number or the color of the plate.
         (b)  Except as provided by Subsection (e), an offense under
  Subsection (a) is a misdemeanor punishable by a fine of not more
  than $200, unless it is shown at the trial of the offense that the
  owner knowingly altered or made illegible the letters, numbers, and
  other identification marks, in which case the offense is a Class B
  misdemeanor.
         (c)  Subsection (a)(7) may not be construed to apply to:
               (1)  a trailer hitch installed on a vehicle in a normal
  or customary manner;
               (2)  a transponder, as defined by Section 228.057, that
  is attached to a vehicle in the manner required by the issuing
  authority;
               (3)  a wheelchair lift or wheelchair carrier that is
  attached to a vehicle in a normal or customary manner;
               (4)  a trailer being towed by a vehicle; or
               (5)  a bicycle or motorcycle rack that is attached to a
  vehicle in a normal or customary manner.
         (d)  A court may dismiss a charge brought under Subsection
  (a)(3), (5), (6), or (7) if the defendant:
               (1)  remedies the defect before the defendant's first
  court appearance; and
               (2)  pays an administrative fee not to exceed $10.
         (e)  An offense under Subsection (a)(4) is a Class B
  misdemeanor.
         SECTION 40.213.  Subchapter A, Chapter 520, Transportation
  Code, is amended by adding Sections 520.003 and 520.004 to read as
  follows:
         Sec. 520.003.  RULES. The department may adopt rules to
  administer this chapter.
         Sec. 520.004.  DEPARTMENT RESPONSIBILITIES. The department
  has jurisdiction over the registration and titling of, and the
  issuance of license plates to, motor vehicles in compliance with
  the applicable statutes. The department:
               (1)  shall provide services that are reasonable,
  adequate, and efficient;
               (2)  shall establish standards for service quality; and
               (3)  may enter into an agreement with a person involved
  in transaction processing, including a lienholder or an electronic
  verification service, only to facilitate the processing of
  electronic title benefits so as to benefit this state and minimize
  inconveniences to the general public.
         SECTION 40.214.  Section 501.137, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  renumbered as Section 520.005, Transportation Code, and amended to
  read as follows:
         Sec. 520.005  [501.137].  DUTY OF COUNTY
  ASSESSOR-COLLECTOR. (a)  Each county assessor-collector shall
  comply with Chapter 501 [this chapter].
         (b)  An assessor-collector who fails or refuses to comply
  with Chapter 501 [this chapter] is liable on the
  assessor-collector's official bond for resulting damages suffered
  by any person.
         SECTION 40.215.  Section 502.109, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  renumbered as Section 520.006, Transportation Code, and amended to
  read as follows:
         Sec. 520.006  [502.109]. COMPENSATION OF
  ASSESSOR-COLLECTOR. (a) A county assessor-collector shall receive
  a fee of $1.90 for each receipt issued under Chapter 502 [this
  chapter. If the assessor-collector may be compensated by fees, a
  fee received is compensation for services under this chapter. The
  assessor-collector shall deduct the fee weekly from the gross
  collections made under this chapter].
         (b)  A county assessor-collector who is compensated under
  this section shall pay the entire expense of issuing registration
  receipts and license plates under Chapter 501 or 502 [this chapter]
  from the compensation allowed under this section.
         SECTION 40.216.  Section 502.111, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  renumbered as Section 520.007, Transportation Code, and amended to
  read as follows:
         Sec. 520.007  [502.111].  COUNTY BRANCH OFFICES. (a) The
  commissioners court of a county may authorize the county
  assessor-collector to:
               (1)  establish a suboffice or branch office for vehicle
  registration at one or more locations in the county other than the
  county courthouse; or
               (2)  appoint a deputy to register vehicles in the same
  manner and with the same authority as though done in the office of
  the assessor-collector.
         (b)  The report of vehicles registered through a suboffice or
  branch office shall be made through the office of the county
  assessor-collector.
         SECTION 40.217.  Section 502.114, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  renumbered as Section 520.008, Transportation Code, and amended to
  read as follows:
         Sec. 520.008  [502.114].  FULL-SERVICE DEPUTIES. (a) A
  full-service deputy appointed under Section 520.0091 [502.112]
  shall accept any application for registration, registration
  renewal, or title transfer that the county assessor-collector may
  accept.
         (b)  A full-service deputy may charge and retain an
  additional motor vehicle registration fee not to exceed $5 for each
  motor vehicle registration issued.
         (c)  A county assessor-collector may delegate to a
  full-service deputy, in the manner selected by the
  assessor-collector, the authority to use data processing equipment
  and software provided by the department for use in the titling and
  registration of motor vehicles. The department may not limit a
  county assessor-collector's ability to delegate the
  assessor-collector's functions regarding the titling and
  registration of motor vehicles to a qualified full-service deputy
  in the manner the assessor-collector considers appropriate.
         SECTION 40.218.  Section 502.113, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  renumbered as Section 520.009, Transportation Code, and amended to
  read as follows:
         Sec. 520.009  [502.113].  LIMITED-SERVICE DEPUTIES. (a) A
  limited-service deputy appointed under Section 520.0091 [502.112]
  may only accept registration renewal cards provided by the
  department and may not prepare or accept an application for title
  transfer.
         (b)  The county assessor-collector may pay a limited-service
  deputy an amount not to exceed the fee the assessor-collector could
  collect under Section 520.006(a) [502.109(a)] for each
  registration receipt issued. The commissioners court of the county
  may permit a limited-service deputy to charge and retain an
  additional fee not to exceed $1 for each registration receipt
  issued.
         SECTION 40.219.  Section 502.112, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code, and
  renumbered as Section 520.0091, Transportation Code, to read as
  follows:
         Sec. 520.0091  [502.112].  DEPUTY ASSESSOR-COLLECTORS. (a)
  A county assessor-collector, with the approval of the commissioners
  court of the county, may deputize an individual or business entity
  to:
               (1)  issue motor vehicle registration receipts as a
  limited-service deputy; or
               (2)  issue motor vehicle registration receipts and
  prepare or accept applications for title transfers as a
  full-service deputy.
         (b)  An individual or business entity is eligible to be
  deputized as a limited-service deputy if the person:
               (1)  is trained to issue registration receipts by the
  county assessor-collector; and
               (2)  posts a bond payable to the county
  assessor-collector:
                     (A)  in an amount determined by the
  assessor-collector; and
                     (B)  conditioned on the person's proper
  accounting and remittance of all fees the person collects.
         (c)  An individual or business entity is eligible to be
  deputized as a full-service deputy if the person:
               (1)  meets the requirements of Subsection (b); and
               (2)  has experience in title transfers.
         (d)  A person deputized under this section shall keep a
  separate account of the fees collected and a record of daily
  receipts.
         SECTION 40.220.  Section 501.136, Transportation Code, is
  transferred to Subchapter A, Chapter 520, Transportation Code,
  renumbered as Section 520.0092, Transportation Code, and amended to
  read as follows:
         Sec. 520.0092  [501.136].  ACTS BY DEPUTY COUNTY
  ASSESSOR-COLLECTOR. A deputy county assessor-collector, other
  than a limited service deputy appointed under Section 520.0091
  [502.112], may perform the duties of an assessor-collector under
  Chapter 501 [this chapter].
         SECTION 40.221.  Section 520.002, Transportation Code, is
  renumbered as Section 520.0093, Transportation Code, and amended to
  read as follows:
         Sec. 520.0093  [520.002].  LEASE OF ADDITIONAL COMPUTER
  EQUIPMENT. (a) This section applies only to the lease of equipment
  [to a county] for the operation of the automated registration and
  titling [title] system in addition to the equipment provided by the
  department at no cost to the county under a formula prescribed by
  the department.
         (b)  On the request of the tax assessor-collector of a
  county, the department may enter into an agreement with the
  commissioners court of that county under which the department
  leases additional equipment to the county for the use of the tax
  assessor-collector in operating the automated registration and
  titling [title] system in that county.
         (c)  A county may install equipment leased under this section
  at offices of the county or of an agent of the county.
         (d)  Equipment leased under this section:
               (1)  remains the property of the department; and
               (2)  must be used primarily for the automated
  registration and titling [title] system.
         (e)  Under the agreement, the department shall charge [the
  county] an amount not less than the amount of the cost to the
  department to provide the additional equipment and any related
  services under the lease. All money collected under the lease shall
  be deposited to the credit of the state highway fund.
         SECTION 40.222.  The heading to Subchapter B, Chapter 520,
  Transportation Code, is amended to read as follows:
  SUBCHAPTER B. ADMINISTRATIVE PROVISIONS [MOTOR NUMBER RECORD
  REQUIREMENTS]
         SECTION 40.223.  Subchapter B, Chapter 520, Transportation
  Code, is amended by adding Sections 520.015 and 520.016 to read as
  follows:
         Sec. 520.015.  REGISTRATION AND INSPECTION CONSOLIDATION
  STUDY. (a) In consultation with the Texas Commission on
  Environmental Quality, the department and the Department of Public
  Safety shall conduct a joint study on the feasibility of
  consolidation of the state's motor vehicle registration and
  compulsory inspection procedures in a manner that will allow
  completion of annual registration and compulsory inspection
  requirements as part of a single process. The study must address
  recommendations for:
               (1)  consolidating shared records and information;
               (2)  the manner in which registration and inspection
  fees collected will be distributed;
               (3)  oversight regarding implementation of the
  consolidated procedures;
               (4)  transition from the current separate procedures to
  the consolidated procedures; and
               (5)  other related issues the departments consider
  appropriate.
         (b)  The departments shall share the cost of the study in
  equal amounts.
         Sec. 520.016.  MERGER OR CONSOLIDATION OF SHARED INFORMATION
  STUDY. (a) In consultation with the Texas Commission on
  Environmental Quality, the department and the Department of Public
  Safety shall conduct a joint study on the merger or consolidation of
  similar information that is collected separately by each agency.
  The study should include the feasibility of establishing a database
  interface software system that:
               (1)  sufficiently protects the privacy of the public;
               (2)  sufficiently protects the security and integrity
  of information provided;
               (3)  increases public convenience;
               (4)  is cost-effective; and
               (5)  improves the coordination of regulatory
  resources.
         (b)  The implementing agencies may facilitate the
  implementation of the merger or consolidation, assist in the
  development of rules, and coordinate a testing phase.
         SECTION 40.224.  Section 520.036, Transportation Code, is
  transferred to Subchapter B, Chapter 520, Transportation Code, and
  renumbered as Section 520.017, Transportation Code, to read as
  follows:
         Sec. 520.017  [520.036].  GENERAL PENALTY. (a) A person
  commits an offense if the person violates this subchapter in a
  manner for which a specific penalty is not provided.
         (b)  An offense under this section is a misdemeanor
  punishable by a fine of not less than $50 and not more than $200.
         SECTION 40.225.  Section 520.051(5), Transportation Code,
  is amended to read as follows:
               (5)  "Title service record" means the written or
  electronic record for each transaction in which a motor vehicle
  title service receives compensation.
         SECTION 40.226.  Section 681.003(b), Transportation Code,
  is amended to read as follows:
         (b)  An application for a disabled parking placard must be:
               (1)  on a form furnished by the department;
               (2)  submitted to the county assessor-collector of the
  county in which the person with the disability resides; and
               (3)  accompanied by a fee of $5 if the application is
  for a temporary placard.
         SECTION 40.227.  Section 386.251(c), Health and Safety Code,
  is amended to read as follows:
         (c)  The fund consists of:
               (1)  the amount of money deposited to the credit of the
  fund under:
                     (A)  Section 386.056;
                     (B)  Sections 151.0515 and 152.0215, Tax Code; and
                     (C)  Sections 501.138, 502.358 [502.1675], and
  548.5055, Transportation Code; and
               (2)  grant money recaptured under Section 386.111(d).
         SECTION 40.228.  The following provisions of the
  Transportation Code are repealed:
               (1)  Sections 501.026 and 501.075;
               (2)  Section 501.091(4);
               (3)  Sections 501.094, 501.099, and 501.133;
               (4)  Sections 501.134(e) and (f);
               (5)  Sections 502.007, 502.0074, 502.0075, 502.008,
  502.104, 502.105, 502.1535, 502.154, 502.1585, 502.168, 502.175,
  502.177, 502.187, 502.206, 502.271, 502.2862, 502.2971, 502.403,
  and 502.405;
               (6)  Section 502.407(c);
               (7)  Section 502.412(c);
               (8)  Sections 502.452, 502.453, and 502.455;
               (9)  Section 504.401(b);
               (10)  Section 504.402(b);
               (11)  Section 504.403(b);
               (12)  Section 504.405(b);
               (13)  Section 504.5011;
               (14)  Section 504.502(j);
               (15)  Section 504.506(f);
               (16)  Section 504.507(c);
               (17)  Section 504.508(d);
               (18)  Sections 504.620, 504.624, 504.629, 504.634,
  504.643, 504.649, 504.650, 504.653, 504.655, and 504.701;
               (19)  Section 504.702(c);
               (20)  Section 504.801(h);
               (21)  Sections 504.851(e) and (k); and
               (22)  Sections 520.013 and 520.034.
         SECTION 40.229.  (a) The change in law made by this article
  applies only to an offense committed on or after January 1, 2013.
         (b)  An offense committed before January 1, 2013, is covered
  by the law in effect when the offense was committed, and the former
  law is continued in effect for that purpose. For purposes of this
  subsection, an offense was committed before January 1, 2013, if any
  element of the offense was committed before that date.
         SECTION 40.230.  (a) Except as otherwise provided by this
  article, this article takes effect January 1, 2013.
         (b)  This section, Section 40.029 of this article, amending
  Section 501.053, Transportation Code, and Section 40.207 of this
  article, amending Section 504.851, Transportation Code, take
  effect immediately if this Act receives a vote of two-thirds of all
  the members elected to each house, as provided by Section 39,
  Article III, Texas Constitution. If this Act does not receive the
  vote necessary for immediate effect, this section and Section
  40.207 of this article take effect September 1, 2009.
  ARTICLE 41. MOBILITY IMPROVEMENTS
         SECTION 41.01.  Title 5, Transportation Code, is amended by
  adding Chapter 92 to read as follows:
  CHAPTER 92. RAIL DIVISION; URBAN PASSENGER RAIL
         Sec. 92.001.  STATEWIDE PASSENGER RAIL SYSTEM; URBAN
  PASSENGER RAIL DEMONSTRATION PROGRAM. (a) To facilitate the
  development and interconnectivity of rail systems in this state,
  the department shall coordinate activities regarding the planning,
  construction, operation, and maintenance of a statewide passenger
  rail system and an urban passenger rail system. The department
  shall coordinate with other entities involved with passenger rail
  systems, including governmental entities, private entities, and
  nonprofit corporations.
         (b)  Using the procedures described in this chapter, the
  department shall, by January 1, 2010, select at least one
  metropolitan planning organization to design, construct, and
  implement an urban passenger rail demonstration project and other
  mobility improvement projects as described by Chapter 180. The
  department may not designate more than five demonstration programs
  in a year.
         (c)  The department shall advise the legislature in an annual
  report about the appropriateness of designating additional urban
  rail demonstration programs.
         Sec. 92.002.  LONG-TERM PLAN FOR PASSENGER RAIL SYSTEMS.
  (a) The department shall prepare and update annually a long-term
  plan for a statewide passenger rail system and urban passenger rail
  demonstration programs.
         (b)  The department shall annually submit, by December 31
  each year, a report regarding the long-term plan and the
  demonstration programs to:
               (1)  the governor;
               (2)  the lieutenant governor;
               (3)  the speaker of the house of representatives; and
               (4)  the standing committee of each house of the
  legislature that has primary jurisdiction over rail transportation
  issues.
         (c)  Information contained in the report must include:
               (1)  a description of existing and proposed passenger
  rail systems;
               (2)  information regarding the status of passenger rail
  systems under construction and the methods of finance used to
  construct and operate the systems;
               (3)  an analysis of potential interconnectivity
  difficulties; and
               (4)  current ridership numbers and future projections
  for passenger rail projects.
         Sec. 92.003.  DEMONSTRATION PROGRAMS; REQUIREMENTS. (a) Any
  passenger rail system selected for the demonstration program and
  developed under this chapter must:
               (1)  enhance connectivity to airports;
               (2)  enhance connectivity to major employment centers;
  and
               (3)  service major metropolitan urban regions in this
  state which contain at least one county over 300,000 in population.
         Sec. 92.004.  APPLICATION. (a) By October 1, 2009, a
  metropolitan planning organization which contains a county with
  over 300,000 in population may submit an application to the
  department to be considered an urban passenger rail demonstration
  project.
         (b)  An application must include:
               (1)  resolutions of support from at least one county
  commissioners court located in the metropolitan planning
  organization;
               (2)  a map and description of the region's proposed
  urban passenger rail system, including construction and
  implementation timelines;
               (3)  a description of the community benefits the system
  would provide including the impact of the system on the
  environment, existing freeway system, and the workforce
  population;
               (4)  a financial plan for the construction and ongoing
  maintenance and operation of the system using the methods of
  finance authorized under Chapter 180; and
               (5)  a description of the operations and management of
  the system.
         (c)  The commission may not consider an incomplete
  application or an application from a metropolitan planning
  organization that does not service at least one county over 300,000
  in population. For the purposes of this section, population is
  based on the most recent estimate published by the council of
  governments of the region.
         (d)  By January 1, 2009, the department shall designate at
  least one but not more than five metropolitan planning
  organizations as an urban passenger rail demonstration project.
  The department shall conduct at least two public hearings to
  consider the applications received.
         (e)  The department shall base the selection of an urban
  passenger rail demonstration project on:
               (1)  the completeness and thoroughness of the
  application;
               (2)  demonstration of support for the project and
  application from the community as shown through testimony and
  written correspondence;
               (3)  demonstration of support for the project as shown
  from the private sector and large employers;
               (4)  demonstration of support for the application and
  project from units of local government located in and near the
  applicant as shown in resolutions of support and testimony; and
               (5)  demonstration of support for the application and
  project from members of the legislature and congress as shown in
  written correspondence and testimony.
         Sec. 92.005.  POWERS AND DUTIES. (a) The legislature
  authorizes any county located within a metropolitan planning
  organization selected by the department as an urban passenger rail
  demonstration project under this chapter with the specific powers
  and duties prescribed by Chapter 180, Transportation Code.
         (b)  Any county selected by the department as an urban
  passenger rail demonstration project has the powers described in
  Chapter 180.
         Sec. 92.006.  RULES. (a) The department may adopt rules, no
  later than September 1, 2009, to implement the provisions of this
  chapter.
         (b)  The department shall, by September 1, 2009, develop a
  standard application form.
         SECTION 41.02.  Title 5, Transportation Code, is amended by
  adding Chapter 180 to read as follows:
  CHAPTER 180. URBAN PASSENGER RAIL DEMONSTRATION PROGRAM
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 180.001.  SHORT TITLE. This chapter may be cited as the
  Urban Passenger Rail Demonstration Program.
         Sec. 180.002.  DEFINITIONS. In this chapter:
               (1)  "Dealer," "diesel fuel," "gasoline," "motor
  fuel," "motor vehicle," "public highway," and "sale" have the
  meanings assigned by Section 162.001, Tax Code.
               (2)  "Department" means the Texas Department of
  Transportation.
               (3)  "Intermodal hub" and "transit system" have the
  meanings assigned by Section 370.003, Transportation Code.
               (4)  "Metropolitan planning organization" has the
  meaning assigned by Section 472.031, Transportation Code.
               (5)  "Mobility improvement project" means a capital
  improvement or set of related capital improvements in a geographic
  area, including maintenance and operation of the improvements,
  designed to relieve traffic congestion, increase mobility and the
  movement of traffic or individuals, expand transportation
  capacity, promote traffic or pedestrian safety, or improve air
  quality. The term includes passenger rail systems and related
  infrastructure; freight rail systems; transit systems; intermodal
  hubs; pedestrian facilities; streets, roadways, highways, and
  additional roadway or highway lanes, such as turning lanes and
  managed or high occupancy vehicle lanes; and bridges, tunnels,
  interchanges, overpasses, underpasses, service roads, ramps,
  entrance plazas, parking areas or structures, and traffic signal
  systems.
               (6)  "Transit authority" or "transportation authority"
  means an authority operating under Chapter 370, 451, 452, or 460,
  Transportation Code.
               (7)  "Urban passenger rail demonstration program"
  means the program operated by the Texas Department of
  Transportation as described in Chapter 92, Transportation Code.
         Sec. 180.0025.  APPLICABILITY. The provisions of this
  chapter only apply to a county located within the boundaries of a
  metropolitan planning organization selected by the department as an
  urban passenger rail demonstration program under Chapter 92.
         Sec. 180.003.  REDUCTION PROHIBITED. (a) A county,
  municipality, or metropolitan planning organization may not be
  penalized with a reduction in state or federal transportation
  funding, including funding from the state highway fund, the Texas
  mobility fund, the Texas highway beautification fund, general
  obligation bonds, or any other method of state or federal
  transportation financing, because of being selected as an urban
  passenger rail demonstration program as authorized in Chapter 92.
         (b)  The department may not reduce any allocation of state or
  federal transportation funding to a department district because the
  district contains a county that imposes a county motor fuels tax
  under this chapter.
         Sec. 180.004.  URBAN PASSENGER RAIL DEMONSTRATION PROGRAM.
  (a) The Legislature grants any county located in a metropolitan
  planning organization selected by the department as an urban
  passenger rail demonstration program with the powers, duties, and
  provision granted by this chapter.
         Sec. 180.005.  PROHIBITIONS ON USE OF REVENUE. A county
  located within a metropolitan planning organization selected by the
  department as an urban passenger rail demonstration program may not
  use revenue from a method of finance imposed under this chapter:
               (1)  to acquire, construct, maintain, or otherwise
  directly fund a toll project;
               (2)  for an approved mobility improvement project if
  the revenue is used in order to reallocate other revenue toward a
  toll project; or
               (3)  to directly or indirectly hold, promote, or oppose
  an election under this chapter, including paying for promotional,
  educational, or advocacy materials.
         Sec. 180.008.  INTERLOCAL CONTRACTING AUTHORITY. (a)  A
  political subdivision may contract or agree with another political
  subdivision to perform governmental functions and services in
  accordance with this chapter.
         (b)  A party to an interlocal contract may contract with an
  agency, as that term is defined by Section 771.002, Government
  Code.
         (c)  In this section, "interlocal contract" has the meaning
  assigned by Section 791.003, Government Code.
  [Sections 180.009-180.050 reserved for expansion]
  SUBCHAPTER B. ELECTIONS; PROJECT SELECTION; EQUITY
         Sec. 180.051.  CALLING OF ELECTION. (a) All of the
  commissioners courts of those counties that are wholly or partly
  located in the boundaries of the same metropolitan planning
  organization selected by the department as an urban passenger rail
  demonstration program under Chapter 92 shall, by order, call an
  election on the issue of imposing a method of finance under this
  chapter if, at least 240 days before a uniform election date in
  November, a resolution or resolutions requesting that an election
  be called are adopted by the commissioners courts of one or more of
  those counties that contain at least 66 percent of the total
  population of those counties.
         (b)  An election called under this section by the
  commissioners courts of more than one county in the boundaries of
  the same metropolitan planning organization must be held on the
  same date and must be held on a uniform election date in November.
         (c)  Section 334.025, Local Government Code, applies to an
  election called under this section.
         Sec. 180.052.  SUBSEQUENT ELECTIONS. (a) This section
  applies only to a county in which the majority of voters did not
  approve the imposition of a method of finance at an election held
  under Section 180.051.
         (b)  The commissioners court by order may call a subsequent
  election to impose a method of finance authorized under this
  chapter using the procedures described by this subchapter.
         (c)  The commissioners court of a county may not call a
  subsequent election under this section before the second
  anniversary of a previously held election.
         Sec. 180.053.  REQUIRED BALLOT LANGUAGE. (a) An order under
  this subchapter calling an election must list and generally
  describe:
               (1)  the nature and scope of the proposed mobility
  improvement projects to be constructed;
               (2)  the estimated cost and the estimated completion
  date for the capital construction of each proposed mobility
  improvement project; and
               (3)  the method of finance and the rate proposed to
  finance the mobility improvement project.
         (b)  The ballot at an election held under this subchapter
  must be printed as follows: "Authorizing ________ (insert name of
  county) to construct the following mobility improvement
  projects:_______ (insert, on four separate lines, a general and
  brief description of each proposed mobility improvement project, an
  estimated total cost of each project, the estimated date of
  expiration of any necessary bonds, and the estimated date the
  project will be operational to the public). The construction,
  maintenance, and operation of the project or projects listed above
  will be funded with a (insert the method of finance and rate). (If
  applicable, state a separate rate for maintenance and operations).
  By voting "yes," you authorize the county to begin imposing the
  (taxes and fees, if applicable) included above. Do you authorize
  the construction of the mobility improvement projects listed above
  and the collection of the taxes (and fees, if applicable) in ______
  County?"
         (c)  The estimated cost of construction of a mobility
  improvement project listed on a ballot is not a legally binding
  restriction on the actual and ultimate cost of financing the
  project.
         (d)  A ballot may not permit individual mobility improvement
  projects to be voted on as separate options. All mobility
  improvement projects included on a ballot must be approved or
  rejected as a group.
         (e)  A ballot may not list more projects than the proposed
  methods of finance can immediately finance.
         Sec. 180.054.  AUTHORIZED PROJECTS. (a) A county may
  propose for funding by a method of finance imposed under this
  chapter:
               (1)  the construction of a new mobility improvement
  project and related maintenance and operations;
               (2)  the expansion, reconstruction, or rehabilitation
  of an existing mobility improvement project;
               (3)  improvements in the maintenance and operation of
  an existing mobility improvement project; or
               (4)  the retirement of existing debt of a transit
  agency related to a mobility improvement project.
         (b)  A county located in a metropolitan planning
  organization selected by the department as an urban passenger rail
  demonstration program under Chapter 92 may only use funds collected
  from a method of finance imposed under this chapter to fund mobility
  improvement projects consistent with the transportation plans and
  programs of the metropolitan planning organization in which the
  county is wholly or partly located.
         (c)  On or before the 30th day before the date described in
  Section 180.051, the metropolitan planning organization in which
  the county is wholly or partly located shall submit to the county a
  list of eligible mobility improvement projects with a primary
  emphasis on passenger rail and major roadway improvements.
         (d)  On or before the 180th day before an election is held
  under this subchapter, the commissioners court shall, by order and
  in consultation with municipalities and transit agencies located or
  operating in the county, determine in a public hearing which
  projects from the list submitted under Subsection (c) shall be
  proposed for funding from a method of finance imposed under this
  chapter.
         Sec. 180.0545.  PROJECT SELECTION COMMITTEE FOR CERTAIN
  COUNTIES. (a)  If an election is to be held in a metropolitan
  planning organization that services multiple counties, at least two
  of which contain over one million in population, then not later than
  30 days later, the county commissioners of each county to which this
  section applies shall jointly establish with the municipalities in
  the county a project selection committee no later than 30 days after
  the election is ordered.
         (b)  If a county commissioners court to which this section
  applies fails to establish a project selection committee pursuant
  to Subsection (a), the governing bodies of two or more cities that
  contain at least 60 percent of the county's total population may, by
  a joint resolution establish a joint project selection committee.
         (c)  The project selection committee, by supermajority vote
  of not less than two-thirds of its membership, shall select the
  specific mobility improvement projects to be placed on the ballot
  and the methods of finance and adequate rates to financially
  support those projects. A committee may only select new mobility
  improvement projects that are consistent with the transportation
  plan adopted by the metropolitan planning organization. Except as
  provided in Section 180.055, a committee may select a mobility
  improvement project located outside the county. A committee may
  not recommend more projects for placement on the ballot than the
  methods of finance can immediately support.
         (d)  A committee must conduct at least two public hearings
  regarding the proposed mobility improvement projects and use best
  efforts to meet with all affected parties, including workforce
  populations and affected neighborhood groups.
         (e)  The committee shall submit all recommended projects and
  methods of finance to the commissioners court at least 180 days
  before an election. The commissioners court may not amend the list
  of recommended projects or methods of finance.
         (f)  Except as provided by Subsection (g), the project
  selection committee is composed of 11 members as follows:
               (1)  two members who are elected county officials,
  appointed by the county commissioners court;
               (2)  one member who is a member of the governing body of
  a municipality not otherwise entitled to a seat under Subdivision
  (4) or (5) with a population of 25,000 or less located in the
  county, appointed by the county commissioners court;
               (3)  one member who is a member of the governing body of
  a municipality not otherwise entitled to a seat under Subdivision
  (4) or (5) with a population greater than 25,000 but less than
  95,000 located in the county, appointed by the county commissioners
  court;
               (4)  two members who are elected officials of the most
  populous municipality located in the county, appointed by the
  governing body of the municipality;
               (5)  four members who are elected officials of the next
  four most populous municipalities located in the county, one each
  appointed by the governing body of each municipality; and
               (6)  one member who is a member of the governing board
  of the transit or transportation authority with the largest service
  area in the county, appointed by the governing body of the
  authority.
         (g)  If the most populous municipality located in the county
  contains 45 percent or more of the county population, the county's
  project selection committee is composed of the membership provided
  by Subsection (f) except that:
               (1)  the most populous municipality receives three
  members who are elected officials; and
               (2)  three members who are elected officials of the
  next three most populous municipalities located in the county, one
  each appointed by the governing body of each municipality.
         (h)  Only the portion of a municipality's population that is
  located within the county may be used to determine municipal
  population for the purposes of this section. For the purposes of
  this section, municipal population is based on the most recent
  estimate published by the council of governments of the region.
         (i)  A committee must elect a chair from among its members
  and may adopt rules for the conduct of its activities and appoint
  vacancies.
         (j)  All meetings of a committee are open meetings. Notice
  of committee meetings must be provided in accordance with Sections
  551.041, 551.0411, 551.042, 551.043, and 551.049, Government Code.
         (k)  A project selection committee established under this
  section is abolished, and all the duties of the committee expire, on
  the date the committee submits recommendations to the commissioners
  court.
         Sec. 180.055.  COMMITMENT TO EQUITY. (a) Revenue from a
  method of finance imposed under this chapter and collected within
  any municipality having territory located in a transportation
  authority funded by a dedicated sales tax and governed by a
  subregional board under Subchapter O, Chapter 452, Transportation
  Code, shall be maintained in a single segregated account separate
  from tax revenue collected elsewhere in the county.
         (b)  Revenue maintained in the account described by
  Subsection (c) may not be used outside the boundaries of the
  territory of that authority or the county unless the governing body
  of each municipality in the county with territory in the authority
  and the governing body of the transportation authority consent to
  the use.
         (c)  Tax revenue collected in an area outside the territory
  of a transportation authority funded by a dedicated sales tax and
  governed by a subregional board under Subchapter O, Chapter 452,
  Transportation Code, may not be used in the territory of that
  authority or outside the county unless the commissioners court of
  the county or the governing bodies of two or more municipalities
  representing 60 percent or more of the population of the county
  outside of the territory of the authority consent to the use.
         (d)  Before the commissioners court selects a mobility
  improvement project under Section 180.054, the governing body of
  any authority, county, or municipality required under this section
  to provide its consent regarding the use of revenue collected under
  this chapter shall indicate by order, resolution, or other formal
  action whether the consent is granted. On final approval of the
  project by the commissioners court, the governing body of a
  municipality or authority may not rescind its consent if it has been
  given.
  [Sections 180.056-180.100 reserved for expansion]
  SUBCHAPTER C. METHODS OF FINANCE
         Sec. 180.101.  METHODS OF FINANCE AUTHORIZED; EXPIRATION.
  (a) If approved by a majority of the votes cast in a county at an
  election held under Subchapter B, the county shall impose and
  collect any combination of the following methods of finance:
               (1)  a county local tax at a rate of 2, 4, 6, 8, or 10
  cents per gallon on the sale of gasoline and diesel fuel that is
  sold in the county by a person, including a dealer, distributor,
  supplier, or permissive supplier, engaged in the sale of motor
  fuels used to propel a motor vehicle on the public highways of the
  state;
               (2)  a mobility improvement fee, in an amount not less
  than $1 or more than $60, imposed on a person registering a motor
  vehicle in the county at the time of registration, except that the
  fee is not imposed on a person registering a motor vehicle in the
  manner provided by Section 501.0234, Transportation Code;
               (3)  a fee for the renewal of a driver's license issued
  to a county resident as described by Section 180.1015; and
         (b)  The mobility improvement fee authorized by this section
  is not an automobile registration fee and may not be construed as
  automobile registration fees for any legal or constitutional
  purpose.
         (d)  Except as otherwise provided by this subchapter, a
  county shall adopt rules and prescribe forms for the collection of a
  tax or fee authorized by this section. A person required to collect
  a tax or fee authorized by this section shall report and send the
  tax or fee to the county as provided by the county.
         (e)  A county imposing a tax or fee under this section may
  prescribe monetary penalties, including interest charges, for
  failure to keep records required by rules adopted under this
  section, failure to report when required, or failure to pay the tax
  when due.
         (f)  A county attorney, criminal district attorney, or
  district attorney may bring suit against a person to enforce the
  provisions of this section.
         Sec. 180.1012.  COUNTY AUTHORITY TO IMPOSE METHOD OF
  FUNDING. (a)  A county may impose and collect a method of local
  option funding approved by a majority of the voters of the county
  voting at an election held under this chapter and may enter into a
  contract or interlocal agreement as provided by Section 446.058 to
  implement the imposition or collection.
         Sec. 180.1013.  LOW-INCOME RELIEF. (a)  A county
  commissioners court shall, by an order, establish an exemption,
  waiver, or partial reduction from the mobility improvement fee and
  the driver's license fee for citizens of the county of low or
  moderate income who demonstrate significant financial hardship,
  based on income guidelines adopted by the Texas Commission on
  Environmental Quality under Section 382.210, Health and Safety
  Code. Before issuing an order under this section, the
  commissioners court must hold a public hearing regarding the
  proposed exemption, waiver, or partial reduction.
         (b)  The commissioners court shall qualify for the
  exemption, waiver, or partial reduction established under this
  section any person who is eligible to participate in the income
  vehicle repair assistance, retrofit, and accelerated vehicle
  retirement program authorized under Chapter 382, Health and Safety
  Code.
         Sec. 180.1014.  IMPOSITION OF METHOD OF LOCAL OPTION
  FUNDING. (a)  If a majority of the votes cast in an election held
  in a county under this chapter approve any method or combination of
  methods of local option funding, the commissioners court of the
  county by order shall, except in regard to a motor fuel tax, impose
  and begin the collection of the approved method or methods of
  funding before the 91st day after the election date.
         (b)  At a minimum, the order imposing the method or methods
  of local option funding must specify:
               (1)  the rate or amount of the method or methods
  approved at the election; and
               (2)  the manner in which each method will be
  administered, collected, and enforced.
         (c)  Sections 502.102, 502.1025, and 502.108, Transportation
  Code, do not apply to money collected under this chapter.
         Sec. 180.1015.  IMPOSITION OF COUNTY DRIVER'S LICENSE FEE.
  (a)  In this section, "driver's license" and "license" have the
  meanings assigned by Section 521.001, Transportation Code.
         (b)  A county to which this chapter applies may, if approved
  in accordance with other provisions of this chapter, impose a fee on
  the renewal by a county resident of a license under Chapter 521,
  Transportation Code, in an amount not less than $1 or more than the
  license renewal fee under Section 521.421, Transportation Code. A
  fee imposed under this section is in addition to the fee imposed
  under Section 521.421, Transportation Code.
         (c)  A fee imposed by a county under this section shall be
  collected by the Department of Public Safety and deposited in trust
  in the separate suspense account of the county from which the fees
  were collected for allocation to the county as provided by this
  section.
         (d)  Each month, the comptroller shall send to the county
  treasurer or to the person who performs the office of the county
  treasurer the county's share of the fees payable to a municipality
  within the county collected by the Department of Public Safety
  under this section.
         (e)  The comptroller may retain in the suspense account of a
  county a portion of the municipality's share of the fees collected
  for the municipality under this section, not to exceed two percent
  of the amount remitted to the county. If the county has abolished
  the fee, the amount that may be retained may not exceed two percent
  of the final remittance to the county at the time of the termination
  of the collection of the fee.
         (f)  From the amounts retained in a county's suspense
  account, the comptroller may redeem dishonored checks and drafts
  deposited to the credit of the account.
         (g)  Before the expiration of one year after the effective
  date of the abolition of a county driver's license fee imposed under
  this section, the comptroller shall send to the county the
  remainder of the money in the county's suspense account and shall
  close the account.
         (h)  Interest earned on all deposits made under this section,
  including interest earned from retained suspense accounts, shall be
  credited to the county's trust account and allocated to the county
  as described by this section.
         (i)  The county motor fuels tax is added to the selling price
  of the gasoline or diesel fuel and is part of the gasoline or diesel
  fuel price, is a debt owed to the seller, and is recoverable at law
  in the same manner as the fuel charge for gasoline or diesel fuel.
         (j)  The county motor fuels tax authorized by this section is
  in addition to the tax imposed by Chapter 162, Tax Code, and shall
  be collected in conjunction with that tax when gasoline or diesel
  fuel is removed from a terminal using the terminal rack, other than
  by bulk transfer, to be sold or delivered into a county that has
  imposed the tax authorized by this section.
         (k)  A county shall discontinue the collection of a method of
  finance authorized under this chapter when the approved mobility
  improvement projects are accepted by the governmental entity that
  contracted for the projects or when the bonds are paid off,
  whichever is later, unless continued funding for maintenance and
  operation of a project, including the impact to an existing system
  as specified by an interlocal agreement, was authorized at an
  election held under this chapter.
         Sec. 180.102.  IMPOSITION OF COUNTY MOTOR FUELS TAX. (a)
  The comptroller shall administer, collect, and enforce a tax
  imposed on the sale of gasoline or diesel fuel approved in
  accordance with the provisions of this chapter. The tax shall be
  exclusively administered, collected, and enforced in conformance
  with Chapter 162, Tax Code, governing the tax assessed on the sale
  of gasoline and diesel fuel. References in Chapter 162, Tax Code,
  to taxes imposed under that chapter also include taxes imposed
  under this section.
         (b)  The definitions in Chapter 162, Tax Code, apply to this
  section.
         (c)  The exemptions provided by Sections 162.104 and
  162.204, Tax Code, apply to the tax authorized by this section.
         (d)  Subject to Section 180.1025, the comptroller may adopt
  reasonable rules and prescribe forms that are consistent with this
  chapter and Chapter 162, Tax Code, for the administration,
  collection, reporting, and enforcement of this section.
         (e)  Except as provided by Subsection (f), the tax authorized
  by this section takes effect on the first day of the first calendar
  quarter following the expiration of the first complete quarter
  occurring after the date of election authorizing the order imposing
  the tax under Subchapter B.
         (f)  If the comptroller determines that an effective date
  provided by Subsection (e) will occur before the comptroller can
  reasonably take the action required to begin collecting the tax,
  the comptroller may delay the effective date until the first day of
  the first calendar quarter following the date the comptroller
  declares that the comptroller is ready to begin collecting the tax.
         (g)  Except as otherwise provided by this chapter, a county
  shall adopt rules and prescribe forms for the collection of a tax
  authorized by this section. A person required to collect a tax
  authorized by this section shall report and send the tax to the
  county as provided by the county.
         (h)  A county imposing a tax under this chapter may prescribe
  monetary penalties, including interest charges, for failure to keep
  records required by rules adopted under this section, failure to
  report when required, or failure to pay the tax when due.
         (i)  A county attorney, criminal district attorney, or
  district attorney may bring suit against a person to enforce the
  provisions of this section.
         (j)  Before making a distribution to a county under Section
  180.104, the comptroller shall deduct any costs incurred by the
  comptroller related to the comptroller's preparations to
  administer, collect, and enforce a tax on the sale of gasoline or
  diesel fuel approved in accordance with this chapter. Each county
  that approves the imposition of a tax on the sale of gasoline or
  diesel fuel shall be charged a pro rata amount for the comptroller's
  costs in preparing to administer, collect, and enforce the tax. If
  only one county elects to approve the imposition of a tax on the
  sale of gasoline or diesel fuel in its jurisdiction, that county
  shall bear all of the costs incurred by the comptroller but may
  recover pro rata shares of this cost from other counties that
  approve the imposition of the tax.
         Sec. 180.1025.  ADOPTION OF RULES RELATING TO MOTOR FUELS
  TAX. (a) Before the comptroller may adopt rules under Section
  180.102, the comptroller must consult with representatives of:
               (1)  the entities that would be required to:
                     (A)  collect and remit a motor fuels tax imposed
  under this chapter; and
                     (B)  file reports with the comptroller relating to
  a motor fuels tax imposed under this chapter; and
               (2)  counties in which the voters have approved the
  imposition of a motor fuels tax under this chapter.
         (b)  Rules adopted under Section 180.102 must provide for the
  uniform administration and reporting of all motor fuels taxes
  imposed by a county under this chapter. A county may not impose
  requirements on an entity required to collect a motor fuels tax
  under this chapter that are not specifically authorized by the
  rules adopted under Section 180.102.
         (c)  Rules adopted under Section 180.102:
               (1)  may require the comptroller to report sufficient
  information to each county imposing a motor fuels tax under this
  chapter to ensure proper allocation of revenue by the county under
  this chapter;
               (2)  may not require the comptroller to report
  proprietary information collected from an individual taxpayer in a
  way that would be subject to public disclosure; and
               (3)  may not authorize a county imposing a motor fuels
  tax under this chapter to contract with a private entity to perform
  any duty or responsibility associated with the collection,
  enforcement, or administration of the tax.
         Sec. 180.103.  TRUST ACCOUNT. The comptroller shall deposit
  the county taxes collected by the comptroller under this chapter
  and Chapter 162, Tax Code, in trust in the separate suspense account
  of the county for which the taxes were collected.
         Sec. 180.104.  DISTRIBUTION OF TRUST FUNDS. The comptroller
  shall each month distribute to the county treasurer, payable to the
  county and for deposit in the county mobility improvement fund, the
  county's share of the taxes collected by the comptroller under this
  chapter and Chapter 162, Tax Code.
         Sec. 180.105.  STATE'S SHARE. Before making a distribution
  to a county under Section 180.104, the comptroller also shall
  deduct an amount not to exceed two percent of the amount of the
  taxes collected for the county during the period for which a
  distribution is made as the state's charge for its services. The
  comptroller shall credit the amount deducted to the general revenue
  fund. The comptroller shall adjust the percentage of the amount
  deducted each state fiscal year considering the projected
  expenditures necessary for the collection, administrative, and
  enforcement functions related to the county motor fuels tax.
         Sec. 180.106.  AMOUNTS RETAINED IN TRUST ACCOUNT. (a) The
  comptroller may retain in the suspense account of a county a portion
  of the county's share of the tax collected for the county under this
  chapter and Chapter 162, Tax Code, not to exceed five percent of the
  amount distributed to the county. If the county has abolished the
  tax, the amount that may be retained may not exceed five percent of
  the final distribution to the county at the time of the termination
  of the collection of the tax.
         (b)  From the amounts retained in a county's suspense
  account, the comptroller may correct erroneous deposits to the
  account, make refunds for overpayments to the account, and redeem
  dishonored checks and drafts deposited to the credit of the
  account.
         (c)  Before the fourth anniversary of the effective date of
  the abolition of a county tax collected under this chapter and
  Chapter 162, Tax Code, the comptroller shall send to the county the
  remainder of the money in the county's account and shall close the
  account.
         Sec. 180.107.  INTEREST ON TRUST ACCOUNT. Interest earned
  on all deposits made by the comptroller under this subchapter shall
  be credited to the suspense account of the county.
  [Sections 180.108-180.150 reserved for expansion]
  SUBCHAPTER D. FUND
         Sec. 180.151.  COUNTY MOBILITY IMPROVEMENT FUND. (a) The
  commissioners court of each county that imposes a method of finance
  collected under this chapter shall, by order, establish a county
  mobility improvement fund that is separate and apart from the
  county's general fund account.
         (b)  The county shall deposit in the fund money distributed
  to the county under Section 180.104.
         (c)  The county shall establish segregated accounts in the
  fund:
               (1)  for each approved mobility improvement project;
  and
               (2)  for funds collected in the jurisdiction of a
  transit authority or transportation authority that is funded
  through a dedicated sales tax and that operates under Subchapter O,
  Chapter 452, or Chapter 460, Transportation Code.
         (d)  Money in the fund, including any interest earned, is the
  property of the county depositing the money and may be spent only as
  provided by Section 180.152.
         Sec. 180.152.  USE OF MONEY IN FUND; ISSUANCE OF BONDS.
  (a)  A county may use money in its county mobility improvement fund
  to:
               (1)  reimburse or pay, without issuing bonds or other
  obligations or otherwise creating debt, the costs of planning,
  acquiring, establishing, developing, constructing, or renovating
  mobility improvement projects in the county that were approved at
  an election under this subchapter;
               (2)  pay the principal of, interest on, or other costs
  relating to bonds or other obligations the county issues for the
  purpose of financing mobility improvement projects in the county
  that were approved at an election under this subchapter;
               (3)  pay amounts due and owing to a transit authority or
  transportation authority under a contract or interlocal agreement
  between the county and the authority under which the authority
  agrees to provide, develop, construct, install, and operate
  passenger rail facilities and services inside and outside the
  county and to issue bonds and other obligations that are secured by
  and payable from the amounts due from the county under the contract
  or interlocal agreement for the purpose of financing the capital
  costs of the facilities, if a county motor fuels tax was approved
  for that purpose at an election under this chapter;
               (4)  pay amounts due and owing to a municipality under a
  contract or interlocal agreement between the county and the
  municipality under which the municipality agrees to provide,
  develop, or construct mobility improvement projects located inside
  the municipality;
               (5)  pay amounts owed to a transit agency to accelerate
  the retirement of outstanding debt; and
               (6)  reimburse or pay the actual and customary costs of
  financial administration of the fund.
         (b)  A contract or interlocal agreement entered into between
  a county and a transit authority or transportation authority for
  the purposes described by Subsection (a)(3) may have those terms
  and provisions, and may impose and contain requirements, grants,
  and limitations, as the county and the transit authority or
  transportation authority may mutually agree, including the power of
  the transit authority or transportation authority to pledge as
  security for its bonds all amounts, less agreed costs of
  collection, deposited to the county's local option transportation
  fund, if such a pledge was approved at an election under this
  subchapter.
         (c)  Bonds or other obligations issued by a county under this
  section may be made payable from money in the county's county
  mobility improvement fund, subject to any limitations contained in
  a contract or interlocal agreement between the county and a transit
  authority or transportation authority, and from any other sources
  of revenue of the county that are lawfully available. Bonds or
  other obligations issued by a transit authority or transportation
  authority under a contract or interlocal agreement shall be payable
  from and secured by the money in the county's county mobility
  improvement fund and the revenue received from the operation of the
  passenger rail services financed by the bonds or other obligations
  and may not include any revenue the transit authority or
  transportation authority receives from a dedicated sales tax or the
  operation of any other passenger rail or bus system or related
  services.
         (d)  Bonds or other obligations issued by a county under this
  section or by a transit authority or transportation authority under
  a contract or interlocal agreement may mature serially or otherwise
  not more than 30 years after the date of issuance.
         (e)  Any bonds or other obligations issued by a county or by a
  transit authority or transportation authority under this section,
  and the proceedings authorizing the bonds or other obligations,
  must be submitted to the attorney general for review and approval
  under Chapter 1202, Government Code.
         (f)  A county may not:
               (1)  use money in the fund to finance the construction
  of a mobility improvement project not approved by the voters in an
  election under this chapter; or
               (2)  use funds approved for a particular mobility
  improvement project to fund a different project.
  [Sections 180.153-180.200 reserved for expansion]
  SUBCHAPTER E. TRANSIT AND TRANSPORTATION AUTHORITIES
         Sec. 180.201.  USE OF SALES TAX BY TRANSPORTATION AUTHORITY.
  A subregion of a transportation authority governed by a subregional
  board described by Subchapter O, Chapter 452, Transportation Code,
  may not use any proceeds from a sales and use tax imposed under that
  chapter, or any other revenue of the authority under that chapter,
  for a mobility improvement project under this chapter without the
  favorable vote of four-fifths of the members of the subregional
  board.
         Sec. 180.202.  TRANSIT AUTHORITY OR TRANSPORTATION
  AUTHORITY SERVICES NOT AUTHORIZED. (a) A county acting under this
  chapter may not directly operate or provide passenger rail services
  or any service expressly reserved by a transit authority or a
  transportation authority that serves the county.
         (b)  A motor fuels tax imposed by a county under this chapter
  may not be used to establish or fund services of a transit authority
  or a transportation authority created on or after January 1, 2009.
         (c)  This chapter does not authorize the creation of a
  transit authority or a transportation authority.
         SECTION 41.03.  Subchapter C, Chapter 791, Government Code,
  is amended by adding Section 791.034 to read as follows:
         Sec. 791.034.  CONTRACTS RELATED TO COUNTY MOTOR FUELS
  TAXES. (a) The comptroller may enter into an interlocal contract
  with one or more local governments or political subdivisions to
  collect, administer, and enforce a county motor fuels tax enacted
  under Chapter 180, Local Government Code, and any other related
  law.
         (b)  This section expires January 1, 2012.
         SECTION 41.04.  Section 162.001, Tax Code, is amended by
  adding Subdivisions (16-a), (16-b), (56-a), (56-b), and (57-a) to
  read as follows:
               (16-a)  "County diesel fuel tax" means the tax imposed
  by Section 162.2011 or 162.2035.
               (16-b)  "County gasoline tax" means the tax imposed by
  Section 162.1011 or 162.1035.
               (56-a)  "State diesel fuel tax" means the tax imposed
  by Section 162.201 or 162.203.
               (56-b)  "State gasoline tax" means the tax imposed by
  Section 162.101 or 162.103.
               (57-a)  "Taxing county" means a destination county that
  has adopted the tax on motor vehicle fuel authorized by Chapter 616,
  Local Government Code.
         SECTION 41.05.  Sections 162.004(e) and (g), Tax Code, are
  amended to read as follows:
         (e)  A person to whom a shipping document was issued shall:
               (1)  carry the shipping document in the barge, vessel,
  railroad tank car, or other transport vehicle for which the
  document was issued when transporting the motor fuel described in
  the document;
               (2)  show the shipping document on request to any law
  enforcement officer, representative of the comptroller, or other
  authorized individual, when transporting the motor fuel described;
               (3)  deliver the motor fuel to the destination state
  printed on the shipping document unless the person:
                     (A)  notifies the comptroller and the destination
  state, if a diversion program is in place, before transporting the
  motor fuel into a state other than the printed destination state,
  that the person has received instructions after the shipping
  document was issued to deliver the motor fuel to a different
  destination state;
                     (B)  receives from the comptroller and
  destination state, if a diversion program is in place, a diversion
  number authorizing the diversion; and
                     (C)  writes on the shipping document the change in
  destination state and the diversion number; [and]
               (4)  if delivering the motor fuel into a county in this
  state, denote on the shipping document the county to which the motor
  fuel will be delivered or, in the case of a split load, each county
  in which a portion of the motor fuel will be delivered; and
               (5)  give a copy of the shipping document to the person
  to whom the motor fuel is delivered.
         (g)  The person to whom motor fuel is delivered by barge,
  vessel, railroad tank car, or transport vehicle may not accept
  delivery of the motor fuel if the destination state shown on the
  shipping document for the motor fuel is a state other than this
  state, except that the person may accept the [that] delivery if the
  document contains a diversion number authorized by the comptroller
  and destination state, if applicable, and has received a properly
  completed shipping document listing the county in this state in
  which the person accepts delivery. The person to whom the motor
  fuel is delivered shall examine the shipping document to determine
  that the destination state is this state and the county in this
  state is the county in which the person accepts delivery, and shall
  retain a copy of the shipping document at the delivery location or
  another place until the fourth anniversary of the date of delivery.
         SECTION 41.06.  Section 162.005(e), Tax Code, is amended to
  read as follows:
         (e)  The comptroller may revoke a license if the license
  holder:
               (1)  purchases for export motor fuel on which the tax
  was not paid under this chapter and subsequently diverts or causes
  the motor fuel to be diverted to a destination in this state or to
  any destination other than the originally designated state or
  country without first obtaining a diversion number; or
               (2)  delivers motor fuel on which the county gasoline
  tax or county diesel fuel tax is due without issuing a properly
  completed shipping document listing the taxing county in which the
  delivery occurred.
         SECTION 41.07.  Section 162.012, Tax Code, is amended to
  read as follows:
         Sec. 162.012.  PRESUMPTIONS. (a) A person licensed under
  this chapter or required to be licensed under this chapter, or other
  user, who fails to keep a record, issue an invoice, or file a return
  or report required by this chapter is presumed to have sold or used
  for taxable purposes all motor fuel shown by an audit by the
  comptroller to have been sold to the license holder or other user.
  Motor fuel unaccounted for is presumed to have been sold or used for
  taxable purposes.
         (b)  If an exporter claims an exemption under Section
  162.104(a)(4)(B) or 162.204(a)(4)(B) and fails to produce proof of
  payment of tax to the destination state or proof that the
  transaction was exempt in the destination state, the exporter is
  presumed to have not paid the destination state's tax or this
  state's tax on the exported motor fuel and the comptroller shall
  assess the tax imposed by this chapter on the exported motor fuel
  against the exporter.
         (c)  If a person claims an exemption from the county motor
  fuels tax and fails to produce proof of delivery to a nontaxing
  county, the person is presumed to have delivered the motor fuel to a
  taxing county that imposes the tax on motor vehicle fuels
  authorized by Chapter 616, Local Government Code.
         (d)  The comptroller may fix or establish the amount of
  taxes, penalties, and interest due this state from the records of
  deliveries or from any records or information available. If a tax
  claim, as developed from this procedure, is not paid, after the
  opportunity to request a redetermination, the claim and any audit
  made by the comptroller or any report filed by the license holder or
  other user is evidence in any suit or judicial proceedings filed by
  the attorney general and is prima facie evidence of the correctness
  of the claim or audit. A prima facie presumption of the correctness
  of the claim may be overcome at the trial by evidence adduced by the
  license holder or other user.
         (e) [(b)]  In the absence of records showing the number of
  miles actually operated per gallon of motor fuel consumed, it is
  presumed that not less than one gallon of motor fuel was consumed
  for every four miles traveled. An interstate trucker may produce
  evidence of motor fuel consumption to establish another mileage
  factor. If an examination or audit made by the comptroller from the
  records of an interstate trucker shows that a greater amount of
  motor fuel was consumed than was reported by the interstate trucker
  for tax purposes, the interstate trucker is liable for the tax,
  penalties, and interest on the additional amount shown or the
  trucker is entitled to a credit or refund on overpayments of tax
  established by the audit.
         SECTION 41.08.  Section 162.015, Tax Code, is amended to
  read as follows:
         Sec. 162.015.  ADDITIONAL TAX APPLIES TO INVENTORIES. (a)
  On the effective date of an increase in the rate [rates] of a tax
  [the taxes] imposed by this chapter, a distributor or dealer that
  possesses for the purpose of sale 2,000 or more gallons of gasoline
  or diesel fuel at each business location on which a tax [the taxes]
  imposed by this chapter at a previous rate has [have] been paid
  shall report to the comptroller the volume of that gasoline and
  diesel fuel, and at the time of the report shall pay a tax on that
  gasoline and diesel fuel at a rate equal to the rate of the tax
  increase.
         (b)  On the effective date of a reduction of the rate [rates]
  of a tax [taxes] imposed by this chapter, a distributor or dealer
  that possesses for the purpose of sale 2,000 or more gallons of
  gasoline or diesel fuel at each business location on which a tax
  [the taxes] imposed by this chapter at the previous rate has [have]
  been paid becomes entitled to a refund in an amount equal to the
  difference in the amount of the tax [taxes] paid on that gasoline or
  diesel fuel at the previous rate and at the rate in effect on the
  effective date of the reduction in the tax rate [rates]. The rules
  of the comptroller shall provide for the method of claiming a refund
  under this chapter and may require that the refund for the dealer be
  paid through the distributor or supplier from whom the dealer
  received the fuel.
         SECTION 41.09.  Section 162.016, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (g-1) to read as
  follows:
         (a)  A person may not import motor fuel to a destination in
  this state or export motor fuel to a destination outside this state
  by any means unless the person possesses a shipping document for
  that fuel created by the terminal or bulk plant at which the fuel
  was received. The shipping document must include:
               (1)  the name and physical address of the terminal or
  bulk plant from which the motor fuel was received for import or
  export;
               (2)  the name and federal employer identification
  number, or the social security number if the employer
  identification number is not available, of the carrier transporting
  the motor fuel;
               (3)  the date the motor fuel was loaded;
               (4)  the type of motor fuel;
               (5)  the number of gallons:
                     (A)  in temperature-adjusted gallons if purchased
  from a terminal for export or import; or
                     (B)  in temperature-adjusted gallons or in gross
  gallons if purchased from a bulk plant;
               (6)  the destination state and, if the destination
  state is this state, the county in this state to which the gasoline
  or diesel fuel will be delivered [of the motor fuel] as represented
  by the purchaser of the motor fuel and the number of gallons of the
  fuel to be delivered, if delivery is to only one state;
               (7)  the name, federal employer identification number,
  license number, and physical address of the purchaser of the motor
  fuel;
               (8)  the name of the person responsible for paying the
  tax imposed by this chapter, as given to the terminal by the
  purchaser if different from the licensed supplier or distributor;
  and
               (9)  any other information that, in the opinion of the
  comptroller, is necessary for the proper administration of this
  chapter.
         (g-1)  An importer or exporter who wants to deliver a single
  cargo tank of motor fuel to a county in this state must issue a
  properly completed shipping document denoting the county to which
  the motor fuel will be delivered or, in the case of a split load,
  each county to which a portion of the motor fuel will be delivered.
         SECTION 41.10.  The heading to Section 162.101, Tax Code, is
  amended to read as follows:
         Sec. 162.101.  POINT OF IMPOSITION OF STATE GASOLINE TAX.
         SECTION 41.11.  Sections 162.101(a), (b), (c), and (f), Tax
  Code, are amended to read as follows:
         (a)  A tax is imposed on the removal of gasoline from the
  terminal using the terminal rack, other than by bulk transfer. The
  supplier or permissive supplier shall collect the tax imposed by
  this section [subchapter] from the person who orders the withdrawal
  at the terminal rack.
         (b)  A tax is imposed at the time gasoline is imported into
  this state, other than by a bulk transfer, for delivery to a
  destination in this state. The permissive supplier shall collect
  the tax imposed by this section [subchapter] from the person who
  imports the gasoline into this state. If the seller is not a
  permissive supplier, then the person who imports the gasoline into
  this state shall pay the tax.
         (c)  A tax is imposed on the sale or transfer of gasoline in
  the bulk transfer/terminal system in this state by a supplier to a
  person who does not hold a supplier's license. The supplier shall
  collect the tax imposed by this section [subchapter] from the
  person who orders the sale or transfer in the bulk transfer terminal
  system.
         (f)  A terminal operator in this state is considered a
  supplier for the purpose of the tax imposed by [under] this section
  [subchapter] unless at the time of removal:
               (1)  the terminal operator has a terminal operator's
  license issued for the facility from which the gasoline is
  withdrawn;
               (2)  the terminal operator verifies that the person who
  removes the gasoline has a supplier's license; and
               (3)  the terminal operator does not have a reason to
  believe that the supplier's license is not valid.
         SECTION 41.12.  Subchapter B, Chapter 162, Tax Code, is
  amended by adding Section 162.1011 to read as follows:
         Sec. 162.1011.  IMPOSITION OF COUNTY GASOLINE TAX; POINT OF
  COLLECTION. (a) In a county that imposes the tax on motor vehicle
  fuels authorized by Chapter 616, Local Government Code, a tax is
  imposed on the delivery of gasoline into the taxing county.
         (b)  The distributor shall collect the tax imposed by this
  section from each person on delivery of gasoline into a taxing
  county.
         (c)  In each subsequent sale of gasoline on which the tax has
  been paid, the tax imposed by this section shall be collected from
  the purchaser so that the tax is paid ultimately by the person who
  uses the gasoline. Gasoline is considered to be used when it is
  delivered into a fuel supply tank.
         SECTION 41.13.  Section 162.102, Tax Code, is amended to
  read as follows:
         Sec. 162.102.  TAX RATES [RATE]. (a) The state gasoline tax
  rate is 20 cents for each net gallon or fractional part of a net
  gallon on which the tax is imposed under Section 162.101.
         (b)  In a taxing county, the county gasoline tax rate for
  each net gallon or fractional part of a net gallon is the rate
  established by Chapter 616, Local Government Code.
         SECTION 41.14.  The heading to Section 162.103, Tax Code, is
  amended to read as follows:
         Sec. 162.103.  BACKUP STATE GASOLINE TAX; LIABILITY.
         SECTION 41.15.  Sections 162.103(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  A backup tax is imposed at the rate prescribed by
  Section 162.102(a) [162.102] on:
               (1)  a person who obtains a refund of tax on gasoline by
  claiming the gasoline was used for an off-highway purpose, but
  actually uses the gasoline to operate a motor vehicle on a public
  highway;
               (2)  a person who operates a motor vehicle on a public
  highway using gasoline on which tax has not been paid; and
               (3)  a person who sells to the ultimate consumer
  gasoline on which tax has not been paid and who knew or had reason to
  know that the gasoline would be used for a taxable purpose.
         (c)  The tax imposed by [under] Subsection (a)(3) is also
  imposed on the ultimate consumer.
         SECTION 41.16.  Subchapter B, Chapter 162, Tax Code, is
  amended by adding Section 162.1035 to read as follows:
         Sec. 162.1035.  BACKUP COUNTY GASOLINE TAX; LIABILITY. (a)
  A backup tax is imposed at the rate prescribed by Section 162.102(b)
  on:
               (1)  a person who, in a county that imposes the tax
  authorized by Chapter 616, Local Government Code:
                     (A)  delivers gasoline into the fuel supply tank
  of a motor vehicle;
                     (B)  purchases or receives gasoline from another
  person; or
                     (C)  sells or delivers gasoline to another person;
  and
               (2)  a person who obtains a refund of the tax imposed by
  Section 162.1011 for gasoline that the person delivered into the
  fuel supply tank of a motor vehicle, purchased or acquired, or sold
  or delivered in a county that imposes the tax authorized by Chapter
  616, Local Government Code.
         (b)  A person who sells gasoline subject to the tax imposed
  by this section shall at the time of sale collect the tax from the
  purchaser or recipient of the gasoline in addition to the selling
  price and is liable to this state for the taxes collected at the
  time and in the manner provided by this chapter.
         (c)  The following are exempt from the tax imposed by this
  section:
               (1)  gasoline on which the tax imposed by Section
  162.1011 has been paid; and
               (2)  gasoline exempt under Section 162.104.
         (d)  The tax imposed by this section is in addition to any
  penalty imposed under this chapter.
         SECTION 41.17.  Sections 162.104(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  The taxes [tax] imposed by this subchapter do [does] not
  apply to gasoline:
               (1)  sold to the United States for its exclusive use,
  provided that the exemption does not apply with respect to fuel sold
  or delivered to a person operating under a contract with the United
  States;
               (2)  sold to a public school district in this state for
  the district's exclusive use;
               (3)  sold to a commercial transportation company or a
  metropolitan rapid transit authority operating under Chapter 451,
  Transportation Code, that provides public school transportation
  services to a school district under Section 34.008, Education Code,
  and that uses the gasoline only to provide those services;
               (4)  exported by either a licensed supplier or a
  licensed exporter from this state to any other state, provided
  that:
                     (A)  for gasoline in a situation described by
  Subsection (d), the bill of lading indicates the destination state
  and the supplier collects the destination state tax; or
                     (B)  for gasoline in a situation described by
  Subsection (e), the bill of lading indicates the destination state,
  the gasoline is subsequently exported, and the exporter is licensed
  in the destination state to pay that state's tax and has an
  exporter's license issued under this subchapter;
               (5)  moved by truck or railcar between licensed
  suppliers or licensed permissive suppliers and in which the
  gasoline removed from the first terminal comes to rest in the second
  terminal, provided that the removal from the second terminal rack
  is subject to the state gasoline tax imposed by this subchapter;
               (6)  delivered or sold into a storage facility of a
  licensed aviation fuel dealer from which gasoline will be delivered
  solely into the fuel supply tanks of aircraft or aircraft servicing
  equipment, or sold from one licensed aviation fuel dealer to
  another licensed aviation fuel dealer who will deliver the aviation
  fuel exclusively into the fuel supply tanks of aircraft or aircraft
  servicing equipment; or
               (7)  exported to a foreign country if the bill of lading
  indicates the foreign destination and the fuel is actually exported
  to the foreign country.
         (c)  If an exporter described by Subsection (a)(4)(B) does
  not have an exporter's license issued under this subchapter, the
  supplier must collect the state gasoline tax imposed by [under]
  this subchapter.
         SECTION 41.18.  Section 162.105, Tax Code, is amended to
  read as follows:
         Sec. 162.105.  PERSONS REQUIRED TO BE LICENSED. A person
  shall obtain the appropriate license or licenses issued by the
  comptroller before conducting the activities of:
               (1)  a supplier, who may also act as a distributor,
  importer, exporter, blender, motor fuel transporter, dealer, or
  aviation fuel dealer without securing a separate license, but who
  is subject to all other conditions, requirements, and liabilities
  imposed on those license holders;
               (2)  a permissive supplier, who may also act as a
  distributor, importer, exporter, blender, motor fuel transporter,
  dealer, or aviation fuel dealer without securing a separate
  license, but who is subject to all other conditions, requirements,
  and liabilities imposed on those license holders;
               (3)  a distributor, who may also act as an importer,
  exporter, blender, [or] motor fuel transporter, or dealer without
  securing a separate license, but who is subject to all other
  conditions, requirements, and liabilities imposed on those license
  holders;
               (4)  an importer, who may also act as an exporter,
  blender, [or] motor fuel transporter, or dealer without securing a
  separate license, but who is subject to all other conditions,
  requirements, and liabilities imposed on those license holders;
               (5)  a terminal operator;
               (6)  an exporter;
               (7)  a blender;
               (8)  a motor fuel transporter;
               (9)  an aviation fuel dealer; [or]
               (10)  an interstate trucker; or
               (11)  a dealer.
         SECTION 41.19.  Sections 162.107(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  A person may elect to obtain a permissive supplier
  license to collect the state gasoline tax imposed by [under] this
  subchapter for gasoline that is removed at a terminal in another
  state and has this state as the destination state.
         (b)  With respect to gasoline that is removed by the licensed
  permissive supplier at a terminal located in another state and that
  has this state as the destination state, a licensed permissive
  supplier shall:
               (1)  collect the state gasoline tax due to this state on
  the gasoline;
               (2)  waive any defense that this state lacks
  jurisdiction to require the supplier to collect the state gasoline
  tax due to this state on the gasoline under this subchapter;
               (3)  report and pay the state gasoline tax and the
  county gasoline tax due on the gasoline in the same manner as if the
  removal had occurred at a terminal located in this state;
               (4)  keep records of the removal of the gasoline and
  submit to audits concerning the gasoline as if the removal had
  occurred at a terminal located in this state; and
               (5)  report sales by the permissive supplier to a
  person who is not licensed in this state.
         SECTION 41.20.  Section 162.108, Tax Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  In addition to the information required by Subsection
  (a), an applicant for a license as a dealer must list on the
  application:
               (1)  the street address, city, county, and zip code of
  the location for which the applicant seeks a license to sell or
  dispense motor fuel at retail;
               (2)  the applicant's social security number, driver's
  license number, and federal employer identification number if the
  applicant is a natural person who is not licensed as a supplier,
  permissive supplier, or terminal operator; and
               (3)  if the applicant is a corporation, limited
  liability company, professional association, partnership, or other
  entity that is not licensed as a supplier, permissive supplier, or
  terminal operator and is not wholly owned by an entity that is
  licensed as a supplier, permissive supplier, or terminal operator,
  the physical address, mailing address, social security number, and
  driver's license number of:
                     (A)  each natural person responsible for the
  purchase of motor fuel for sale by the applicant; and
                     (B)  each officer, director, manager, member,
  shareholder, and partner of the applicant.
         SECTION 41.21.  Section 162.110(a), Tax Code, is amended to
  read as follows:
         (a)  The license issued to a supplier, permissive supplier,
  distributor, importer, exporter, terminal operator, blender, [or]
  motor fuel transporter, or dealer is permanent and is valid during
  the period the license holder has in force and effect the required
  bond or security and furnishes timely reports and supplements as
  required, or until the license is surrendered by the holder or
  canceled by the comptroller. The comptroller shall cancel a
  license under this subsection if a purchase, sale, or use of
  gasoline has not been reported by the license holder during the
  previous nine months.
         SECTION 41.22.  Section 162.111(a), Tax Code, is amended to
  read as follows:
         (a)  The comptroller shall determine the amount of security
  required of a supplier, permissive supplier, distributor,
  exporter, importer, dealer, or blender, taking into consideration
  the amount of tax that has or is expected to become due from the
  person, any past history of the person as a license holder under
  this chapter or its predecessor, and the necessity to protect this
  state against the failure to pay the tax as the tax becomes due.
         SECTION 41.23.  Section 162.112(a), Tax Code, is amended to
  read as follows:
         (a)  The comptroller, on or before December 20 of each year,
  shall make available to all license holders an alphabetical list of
  licensed suppliers, permissive suppliers, distributors, aviation
  fuel dealers, importers, exporters, blenders, dealers, and
  terminal operators. A supplemental list of additions and deletions
  shall be made available to the license holders each month. A
  current and effective license or the list furnished by the
  comptroller is evidence of the validity of the license until the
  comptroller notifies license holders of a change in the status of a
  license holder.
         SECTION 41.24.  Sections 162.113(a), (d), and (e), Tax Code,
  are amended to read as follows:
         (a)  Each [licensed] distributor and [licensed] importer
  shall remit to the supplier or permissive supplier, as applicable,
  the tax imposed by Section 162.101 for gasoline removed at a
  terminal rack. A licensed distributor or licensed importer may
  elect to defer payment of the tax to the supplier or permissive
  supplier until two days before the date the supplier or permissive
  supplier is required to remit the tax to this state. The
  distributor or importer shall pay the taxes by electronic funds
  transfer.
         (d)  The supplier or permissive supplier has the right, after
  notifying the comptroller of the licensed distributor's or licensed
  importer's failure to remit taxes under this section, to terminate
  the ability of the licensed distributor or licensed importer to
  defer the payment of gasoline tax. The supplier or permissive
  supplier shall reinstate without delay the right of the licensed
  distributor or licensed importer to defer the payment of gasoline
  tax after the comptroller provides to the supplier or permissive
  supplier notice that the licensed distributor or licensed importer
  is in good standing with the comptroller for the purposes of the
  taxes [gasoline tax] imposed by [under] this subchapter.
         (e)  A licensed distributor or licensed importer who makes
  timely payments of the state gasoline tax imposed by [under] this
  subchapter is entitled to retain an amount equal to 1.75 percent of
  the total state gasoline tax [taxes] to be paid to the supplier or
  permissive supplier to cover administrative expenses.
         SECTION 41.25.  Section 162.114(a), Tax Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection (b), each person who is
  liable for the taxes [tax] imposed by this subchapter, a terminal
  operator, a dealer, and a [licensed] distributor shall file a
  return on or before the 25th day of the month following the end of
  each calendar month.
         SECTION 41.26.  Sections 162.115(b), (c), (e), (g), and (h),
  Tax Code, are amended to read as follows:
         (b)  A distributor shall keep:
               (1)  a record showing the number of gallons of:
                     (A)  all gasoline inventories on hand at the first
  of each month;
                     (B)  all gasoline blended;
                     (C)  all gasoline purchased or received, showing
  the name of the seller and the date of each purchase or receipt;
                     (D)  all gasoline sold, distributed, or used,
  showing:
                           (i)  the name of the purchaser;
                           (ii)  the county in this state to which the
  gasoline was delivered;
                           (iii)  the amount of county gasoline tax
  collected from the purchaser; and
                           (iv)  the date of the sale, distribution, or
  use; and
                     (E)  all gasoline lost by fire, theft, or
  accident;
               (2)  an itemized statement showing by load the number
  of gallons of all gasoline:
                     (A)  received during the preceding calendar month
  for export and the location of the loading;
                     (B)  sold, distributed, or used, showing:
                           (i)  the name of the purchaser;
                           (ii)  the county or counties in this state;
                           (iii)  the amount of county gasoline tax
  collected from the purchaser; and
                           (iv)  the date of the sale, distribution, or
  use;
                     (C)  exported from this state by destination state
  or country; and
                     (D) [(C)]  imported during the preceding calendar
  month by state or country of origin; [and]
               (3)  for gasoline exported from this state, proof of
  payment of tax to the destination state in a form acceptable to the
  comptroller; and
               (4)  all shipping documents.
         (c)  An importer shall keep:
               (1)  a record showing the number of gallons of:
                     (A)  all gasoline inventories on hand at the first
  of each month;
                     (B)  all gasoline compounded or blended;
                     (C)  all gasoline purchased or received, showing
  the name of the seller and the date of each purchase or receipt;
                     (D)  all gasoline sold, distributed, or used,
  showing the name of the purchaser, the county in this state, and the
  date of the sale, distribution, or use; and
                     (E)  all gasoline lost by fire, theft, or
  accident; and
               (2)  an itemized statement showing by load the number
  of gallons of all gasoline:
                     (A)  received during the preceding calendar month
  for export and the location of the loading;
                     (B)  sold, distributed, or used, showing the name
  of the purchaser, the county or counties in this state, and the date
  of the sale, distribution, or use;
                     (C)  exported from this state by destination state
  or country; and
                     (D) [(C)]  imported during the preceding calendar
  month by state or country of origin.
         (e)  A blender shall keep a record showing the number of
  gallons of:
               (1)  all gasoline inventories on hand at the first of
  each month;
               (2)  all gasoline compounded or blended;
               (3)  all gasoline purchased or received, showing the
  name of the seller and the date of each purchase or receipt;
               (4)  all gasoline sold, distributed, or used, showing
  the name of the purchaser, the county in this state, and the date of
  the sale or use; and
               (5)  all gasoline lost by fire, theft, or accident.
         (g)  A motor fuel transporter shall keep a complete and
  separate record of each intrastate and interstate transportation of
  gasoline, showing:
               (1)  the date of transportation;
               (2)  the name of the consignor and consignee;
               (3)  the means of transportation;
               (4)  the quantity and kind of gasoline transported;
               (5)  full data concerning the diversion of shipments,
  including the county in this state and the number of gallons
  diverted from interstate to intrastate and intrastate to interstate
  commerce; and
               (6)  the points of origin and destination, the county
  in this state, the number of gallons shipped or transported, the
  date, the consignee and the consignor, and the kind of gasoline that
  has been diverted.
         (h)  A dealer shall keep a record showing the number of
  gallons of:
               (1)  gasoline inventories on hand at the first of each
  month;
               (2)  all gasoline purchased or received, showing the
  name of the seller and the date of each purchase or receipt;
               (3)  all gasoline sold or used, showing the date of the
  sale or use; [and]
               (4)  all gasoline lost by fire, theft, or accident; and
               (5)  the shipping documents.
         SECTION 41.27.  Section 162.116(c), Tax Code, is amended to
  read as follows:
         (c)  A supplier or permissive supplier may take a credit for
  any state gasoline tax [taxes] that was [were] not remitted in a
  previous period to the supplier or permissive supplier by a
  licensed distributor or licensed importer as required by Section
  162.113. The supplier or permissive supplier is eligible to take
  the credit if the comptroller is notified of the default within 60
  days after the default occurs. If a license holder pays to a
  supplier or permissive supplier the tax owed, but the payment
  occurs after the supplier or permissive supplier has taken a credit
  on its return, the supplier or permissive supplier shall remit the
  payment to the comptroller with the next monthly return after
  receipt of the tax, plus a penalty of 10 percent of the amount of
  unpaid taxes and interest at the rate provided by Section 111.060
  beginning on the date the credit was taken.
         SECTION 41.28.  Section 162.118, Tax Code, is amended to
  read as follows:
         Sec. 162.118.  INFORMATION REQUIRED ON DISTRIBUTOR'S
  RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
  supplements of each distributor shall contain for the period
  covered by the return:
               (1)  the number of net gallons of gasoline received by
  the distributor during the month, sorted by product code, seller,
  point of origin, destination state, carrier, and receipt date;
               (2)  the number of net gallons of gasoline removed at a
  terminal rack by the distributor during the month, sorted by
  product code, seller, terminal code, and carrier;
               (3)  the number of net gallons of gasoline removed by
  the distributor during the month for export, sorted by product
  code, terminal code, bulk plant address, destination state, and
  carrier;
               (4)  the number of net gallons of gasoline removed by
  the distributor during the month from a terminal located in another
  state for conveyance to this state, as indicated on the shipping
  document for the gasoline, sorted by product code, seller, terminal
  code, bulk plant address, and carrier;
               (5)  the number of net gallons of gasoline the
  distributor sold during the month in transactions exempt under
  Section 162.104, sorted by product code and purchaser; [and]
               (6)  the number of net gallons delivered into a taxing
  county sorted by taxing county and purchaser; and
               (7)  any other information required by the comptroller.
         (b)  A distributor or importer who makes timely payments of
  the county tax imposed by this subchapter is entitled to retain an
  amount equal to two percent of the total county gasoline taxes
  remitted to the comptroller to cover administrative expenses.
         SECTION 41.29.  Section 162.123, Tax Code, is amended to
  read as follows:
         Sec. 162.123.  INFORMATION REQUIRED ON BLENDER'S RETURN.
  The monthly return and supplements of each blender shall contain
  for the period covered by the return:
               (1)  the number of net gallons of gasoline received by
  the blender during the month, sorted by product code, seller, point
  of origin, carrier, and receipt date;
               (2)  the number of net gallons of product blended with
  gasoline during the month, sorted by product code, type of blending
  agent if no product code exists, seller, and carrier;
               (3)  the number of net gallons of blended gasoline sold
  during the month and the license number or name, [and] address, and
  county in this state of the entity receiving the blended gasoline;
  and
               (4)  any other information required by the comptroller.
         SECTION 41.30.  Subchapter B, Chapter 162, Tax Code, is
  amended by adding Section 162.1235 to read as follows:
         Sec. 162.1235.  INFORMATION REQUIRED ON DEALER'S RETURN.
  The monthly return and supplements of each dealer shall contain for
  the period covered by the return:
               (1)  the number of gallons of gasoline inventories on
  hand at the first of each month, sorted by product code;
               (2)  the number of gallons of gasoline received by the
  dealer during the month, sorted by seller;
               (3)  the number of gallons of gasoline inventories on
  hand at the end of each month; and
               (4)  any other information required by the comptroller.
         SECTION 41.31.  Sections 162.127(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  A refund claim must be filed on a form provided by the
  comptroller, be supported by the original invoice issued by the
  seller, and contain:
               (1)  the stamped or preprinted name and address,
  including county in this state, of the seller;
               (2)  the name and address of the purchaser;
               (3)  the date of delivery of the gasoline;
               (4)  the date of the issuance of the invoice, if
  different from the date of fuel delivery;
               (5)  the number of gallons of gasoline delivered;
               (6)  the amount of state or county gasoline taxes paid
  [tax], either separately stated from the selling price or stated
  with a notation that both state and county taxes are included if
  both apply [the selling price includes the tax]; and
               (7)  the type of vehicle or equipment, such as a
  motorboat, railway engine, motor vehicle, off-highway vehicle, or
  refrigeration unit or stationary engine, into which the fuel is
  delivered.
         (d)  A distributor or person who does not hold a license who
  files a valid refund claim with the comptroller shall be paid by a
  warrant issued by the comptroller. For purposes of this section, a
  distributor meets the requirement of filing a valid refund claim
  for state and county gasoline taxes if the distributor designates
  the gallons of gasoline sold or used that are the subject of the
  refund claim on the monthly report submitted by the distributor to
  the comptroller.
         SECTION 41.32.  The heading to Section 162.201, Tax Code, is
  amended to read as follows:
         Sec. 162.201.  POINT OF IMPOSITION OF STATE DIESEL FUEL TAX.
         SECTION 41.33.  Sections 162.201(a), (b), and (c), Tax Code,
  are amended to read as follows:
         (a)  A tax is imposed on the removal of diesel fuel from the
  terminal using the terminal rack other than by bulk transfer. The
  supplier or permissive supplier shall collect the tax imposed by
  this section [subchapter] from the person who orders the withdrawal
  at the terminal rack.
         (b)  A tax is imposed at the time diesel fuel is imported into
  this state, other than by a bulk transfer, for delivery to a
  destination in this state. The permissive supplier shall collect
  the tax imposed by this section [subchapter] from the person who
  imports the diesel fuel into this state. If the seller is not a
  permissive supplier, the person who imports the diesel fuel into
  this state shall pay the tax.
         (c)  A tax is imposed on the sale or transfer of diesel fuel
  in the bulk transfer/terminal system in this state by a supplier to
  a person who does not hold a supplier's license. The supplier shall
  collect the tax imposed by this section [subchapter] from the
  person who orders the sale or transfer in the bulk
  transfer/terminal system.
         SECTION 41.34.  Subchapter C, Chapter 162, Tax Code, is
  amended by adding Section 162.2011 to read as follows:
         Sec. 162.2011.  COUNTY DIESEL FUEL TAX IMPOSED; POINT OF
  COLLECTION. (a) In a county that imposes the tax on motor vehicle
  fuels authorized by Chapter 616, Local Government Code, a tax is
  imposed on the delivery of diesel fuel into the taxing county.
         (b)  The distributor shall collect the tax imposed by this
  section from each person on delivery of diesel fuel into a taxing
  county.
         (c)  In each subsequent sale of diesel fuel on which the tax
  has been paid, the tax imposed by this section shall be collected
  from the purchaser so that the tax is paid ultimately by the person
  who uses the diesel fuel. Diesel fuel is considered to be used when
  it is delivered into a fuel supply tank.
         SECTION 41.35.  Section 162.202, Tax Code, is amended to
  read as follows:
         Sec. 162.202.  TAX RATES [RATE]. (a) The state diesel fuel
  tax rate is 20 cents for each net gallon or fractional part of a net
  gallon on which the tax is imposed under Section 162.201.
         (b)  In a taxing county, the county diesel fuel tax rate for
  each net gallon or fractional part of a net gallon is the rate
  established by Chapter 616, Local Government Code.
         SECTION 41.36.  The heading to Section 162.203, Tax Code, is
  amended to read as follows:
         Sec. 162.203.  BACKUP STATE DIESEL FUEL TAX; LIABILITY.
         SECTION 41.37.  Sections 162.203(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  A backup tax is imposed at the rate prescribed by
  Section 162.202(a) [162.202] on:
               (1)  a person who obtains a refund of tax on diesel fuel
  by claiming the diesel fuel was used for an off-highway purpose, but
  actually uses the diesel fuel to operate a motor vehicle on a public
  highway;
               (2)  a person who operates a motor vehicle on a public
  highway using diesel fuel on which tax has not been paid; and
               (3)  a person who sells to the ultimate consumer diesel
  fuel on which a tax has not been paid and who knew or had reason to
  know that the diesel fuel would be used for a taxable purpose.
         (c)  The tax imposed by [under] Subsection (a)(3) is also
  imposed on the ultimate consumer.
         SECTION 41.38.  Subchapter C, Chapter 162, Tax Code, is
  amended by adding Section 162.2035 to read as follows:
         Sec. 162.2035.  BACKUP COUNTY DIESEL FUEL TAX; LIABILITY.
  (a) A backup tax is imposed at the rate prescribed by Section
  162.202(b) on:
               (1)  a person who, in a county that imposes the tax
  authorized by Chapter 616, Local Government Code:
                     (A)  delivers diesel fuel into the fuel supply
  tank of a motor vehicle;
                     (B)  purchases or receives diesel fuel from
  another person; or
                     (C)  sells or delivers diesel fuel to another
  person; and
               (2)  a person who obtains a refund of the tax imposed by
  Section 162.2011 for diesel fuel that the person delivered into the
  fuel supply tank of a motor vehicle, purchased or acquired, or sold
  or delivered in a county that imposes the tax authorized by Chapter
  616, Local Government Code.
         (b)  A person who sells diesel fuel subject to the tax
  imposed by this section shall at the time of sale collect the tax
  from the purchaser or recipient of the diesel fuel in addition to
  the selling price and is liable to this state for the taxes
  collected at the time and in the manner provided by this chapter.
         (c)  The following are exempt from the tax imposed by this
  section:
               (1)  diesel fuel on which the tax imposed by Section
  162.2011 had been paid; and
               (2)  diesel fuel exempt under Section 162.204.
         (d)  The tax imposed by this section is in addition to any
  penalty imposed under this chapter.
         SECTION 41.39.  Sections 162.204(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  The taxes [tax] imposed by this subchapter do [does] not
  apply to:
               (1)  diesel fuel sold to the United States for its
  exclusive use, provided that the exemption does not apply to diesel
  fuel sold or delivered to a person operating under a contract with
  the United States;
               (2)  diesel fuel sold to a public school district in
  this state for the district's exclusive use;
               (3)  diesel fuel sold to a commercial transportation
  company or a metropolitan rapid transit authority operating under
  Chapter 451, Transportation Code, that provides public school
  transportation services to a school district under Section 34.008,
  Education Code, and that uses the diesel fuel only to provide those
  services;
               (4)  diesel fuel exported by either a licensed supplier
  or a licensed exporter from this state to any other state, provided
  that:
                     (A)  for diesel fuel in a situation described by
  Subsection (d), the bill of lading indicates the destination state
  and the supplier collects the destination state tax; or
                     (B)  for diesel fuel in a situation described by
  Subsection (e), the bill of lading indicates the destination state,
  the diesel fuel is subsequently exported, and the exporter is
  licensed in the destination state to pay that state's tax and has an
  exporter's license issued under this subchapter;
               (5)  diesel fuel moved by truck or railcar between
  licensed suppliers or licensed permissive suppliers and in which
  the diesel fuel removed from the first terminal comes to rest in the
  second terminal, provided that the removal from the second terminal
  rack is subject to the state diesel tax imposed by this subchapter;
               (6)  diesel fuel delivered or sold into a storage
  facility of a licensed aviation fuel dealer from which the diesel
  fuel will be delivered solely into the fuel supply tanks of aircraft
  or aircraft servicing equipment, or sold from one licensed aviation
  fuel dealer to another licensed aviation fuel dealer who will
  deliver the diesel fuel exclusively into the fuel supply tanks of
  aircraft or aircraft servicing equipment;
               (7)  diesel fuel exported to a foreign country if the
  bill of lading indicates the foreign destination and the fuel is
  actually exported to the foreign country;
               (8)  dyed diesel fuel sold or delivered by a supplier to
  another supplier and dyed diesel fuel sold or delivered by a
  supplier or distributor into the bulk storage facility of a dyed
  diesel fuel bonded user or to a purchaser who provides a signed
  statement as provided by Section 162.206;
               (9)  the volume of water, fuel ethanol, biodiesel, or
  mixtures thereof that are blended together with taxable diesel fuel
  when the finished product sold or used is clearly identified on the
  retail pump, storage tank, and sales invoice as a combination of
  diesel fuel and water, fuel ethanol, biodiesel, or mixtures
  thereof;
               (10)  dyed diesel fuel sold by a supplier or permissive
  supplier to a distributor, or by a distributor to another
  distributor;
               (11)  dyed diesel fuel delivered by a license holder
  into the fuel supply tanks of railway engines, motorboats, or
  refrigeration units or other stationary equipment powered by a
  separate motor from a separate fuel supply tank;
               (12)  dyed kerosene when delivered by a supplier,
  distributor, or importer into a storage facility at a retail
  business from which all deliveries are exclusively for heating,
  cooking, lighting, or similar nonhighway use; or
               (13)  diesel fuel used by a person, other than a
  political subdivision, who owns, controls, operates, or manages a
  commercial motor vehicle as defined by Section 548.001,
  Transportation Code, if the fuel:
                     (A)  is delivered exclusively into the fuel supply
  tank of the commercial motor vehicle; and
                     (B)  is used exclusively to transport passengers
  for compensation or hire between points in this state on a fixed
  route or schedule.
         (c)  If an exporter described by Subsection (a)(4)(B) does
  not have an exporter's license issued under this subchapter, the
  supplier must collect the state diesel fuel tax imposed by [under]
  this subchapter.
         SECTION 41.40.  Section 162.205(a), Tax Code, is amended to
  read as follows:
         (a)  A person shall obtain the appropriate license or
  licenses issued by the comptroller before conducting the activities
  of:
               (1)  a supplier, who may also act as a distributor,
  importer, exporter, blender, motor fuel transporter, dealer, or
  aviation fuel dealer without securing a separate license, but who
  is subject to all other conditions, requirements, and liabilities
  imposed on those license holders;
               (2)  a permissive supplier, who may also act as a
  distributor, importer, exporter, blender, motor fuel transporter,
  dealer, or aviation fuel dealer without securing a separate license
  but who is subject to all other conditions, requirements, and
  liabilities imposed on those license holders;
               (3)  a distributor, who may also act as an importer,
  exporter, blender, [or] motor fuel transporter, or dealer without
  securing a separate license, but who is subject to all other
  conditions, requirements, and liabilities imposed on those license
  holders;
               (4)  an importer, who may also act as an exporter,
  blender, [or] motor fuel transporter, or dealer without securing a
  separate license, but who is subject to all other conditions,
  requirements, and liabilities imposed on those license holders;
               (5)  a terminal operator;
               (6)  an exporter;
               (7)  a blender;
               (8)  a motor fuel transporter;
               (9)  an aviation fuel dealer;
               (10)  an interstate trucker; [or]
               (11)  a dyed diesel fuel bonded user; or
               (12)  a dealer.
         SECTION 41.41.  Section 162.206(d), Tax Code, is amended to
  read as follows:
         (d)  Any gallons purchased or sold in excess of the
  limitations prescribed by Subsection (c) constitute a [taxable]
  purchase or sale subject to the taxes imposed by this subchapter.
  The purchaser paying the tax on dyed diesel fuel in excess of the
  limitations prescribed by Subsection (c) may claim a refund of the
  tax paid on any dyed diesel fuel used for nonhighway purposes under
  Section 162.227. A purchaser that exceeds the limitations
  prescribed by Subsection (c) shall be required to obtain a dyed
  diesel fuel bonded user license.
         SECTION 41.42.  Sections 162.208(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  A person may elect to obtain a permissive supplier
  license to collect the state diesel fuel tax imposed by [under] this
  subchapter for diesel fuel that is removed at a terminal in another
  state and has this state as the destination state.
         (b)  With respect to diesel fuel that is removed by the
  licensed permissive supplier at a terminal located in another state
  and that has this state as the destination state, a licensed
  permissive supplier shall:
               (1)  collect the state diesel fuel tax due to this state
  on the diesel fuel;
               (2)  waive any defense that this state lacks
  jurisdiction to require the supplier to collect the state diesel
  fuel tax due to this state on the diesel fuel under this subchapter;
               (3)  report and pay the state diesel fuel tax due on the
  diesel fuel in the same manner as if the removal had occurred at a
  terminal located in this state;
               (4)  keep records of the removal of the diesel fuel and
  submit to audits concerning the diesel fuel as if the removal had
  occurred at a terminal located in this state; and
               (5)  report sales by the permissive supplier to a
  person who is not licensed in this state.
         SECTION 41.43.  Section 162.209, Tax Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  In addition to the information required by Subsection
  (a), an applicant for a license as a dealer must list on the
  application:
               (1)  the street address, city, county, and zip code of
  the location for which the applicant seeks a license to sell or
  dispense motor fuel at retail;
               (2)  the applicant's social security number, driver's
  license number, and federal employer identification number if the
  applicant is a natural person who is not licensed as a supplier,
  permissive supplier, or terminal operator; and
               (3)  if the applicant is a corporation, limited
  liability company, professional association, partnership, or other
  entity that is not licensed as a supplier, permissive supplier, or
  terminal operator and is not wholly owned by an entity that is
  licensed as a supplier, permissive supplier, or terminal operator,
  the physical address, mailing address, social security number, and
  driver's license number of:
                     (A)  each natural person responsible for the
  purchase of motor fuel for sale by the applicant; and
                     (B)  each officer, director, manager, member,
  shareholder, and partner of the applicant.
         SECTION 41.44.  Section 162.211(a), Tax Code, is amended to
  read as follows:
         (a)  The license issued to a supplier, permissive supplier,
  distributor, importer, terminal supplier, exporter, blender,
  dealer, motor fuel transporter, or dyed diesel fuel bonded user is
  permanent and is valid during the period the license holder has in
  force and effect the required bond or security and furnishes timely
  reports and supplements as required, or until the license is
  surrendered by the holder or canceled by the comptroller. The
  comptroller shall cancel a license under this subsection if a
  purchase, sale, or use of diesel fuel has not been reported by the
  license holder during the previous nine months.
         SECTION 41.45.  Section 162.212(a), Tax Code, is amended to
  read as follows:
         (a)  The comptroller shall determine the amount of security
  required of a supplier, permissive supplier, distributor,
  exporter, importer, dealer, blender, or dyed diesel fuel bonded
  user, taking into consideration the amount of tax that has or is
  expected to become due from the person, any past history of the
  person as a license holder under this chapter and its predecessor,
  and the necessity to protect this state against the failure to pay
  the tax as the tax becomes due.
         SECTION 41.46.  Section 162.213(a), Tax Code, is amended to
  read as follows:
         (a)  The comptroller, on or before December 20 of each year,
  shall make available to all license holders an alphabetical list of
  licensed suppliers, permissive suppliers, distributors, aviation
  fuel dealers, importers, exporters, blenders, dealers, terminal
  operators, and dyed diesel fuel bonded users. A supplemental list
  of additions and deletions shall be made available to the license
  holders each month. A current and effective license or the list
  furnished by the comptroller is evidence of the validity of the
  license until the comptroller notifies license holders of a change
  in the status of a license holder.
         SECTION 41.47.  Sections 162.214(a) and (e), Tax Code, are
  amended to read as follows:
         (a)  Each [licensed] distributor and [licensed] importer
  shall remit to the supplier or permissive supplier, as applicable,
  the tax imposed by Section 162.201 for diesel fuel removed at a
  terminal rack. A licensed distributor or licensed importer may
  elect to defer payment of the tax to the supplier or permissive
  supplier until two days before the date the supplier or permissive
  supplier is required to remit the tax to this state. The
  distributor or importer shall pay the taxes by electronic funds
  transfer.
         (e)  A licensed distributor or licensed importer who makes
  timely payments of the state diesel fuel tax imposed by [under] this
  subchapter is entitled to retain an amount equal to 1.75 percent of
  the total state diesel fuel tax [taxes] to be paid to the supplier
  or permissive supplier to cover administrative expenses.
         SECTION 41.48.  Section 162.215(a), Tax Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection (b), each person who is
  liable for the taxes [tax] imposed by this subchapter, a terminal
  operator, a dealer, and a [licensed] distributor shall file a
  return on or before the 25th day of the month following the end of
  each calendar month.
         SECTION 41.49.  Sections 162.216(b), (c), (e), (g), and (h),
  Tax Code, are amended to read as follows:
         (b)  A distributor shall keep:
               (1)  a record showing the number of gallons of:
                     (A)  all diesel fuel inventories on hand at the
  first of each month;
                     (B)  all diesel fuel blended;
                     (C)  all diesel fuel purchased or received,
  showing the name of the seller and the date of each purchase or
  receipt;
                     (D)  all diesel fuel sold, distributed, or used,
  showing:
                           (i)  the name of the purchaser;
                           (ii)  the county or counties in this state;
                           (iii)  the amount of county diesel fuel
  collected from the purchaser; and
                           (iv)  the date of the sale, distribution, or
  use; and
                     (E)  all diesel fuel lost by fire, theft, or
  accident;
               (2)  an itemized statement showing by load the number
  of gallons of all diesel fuel:
                     (A)  received during the preceding calendar month
  for export and the location of the loading;
                     (B)  sold, distributed, or used, showing:
                           (i)  the name of the purchaser;
                           (ii)  the destination county or counties in
  this state;
                           (iii)  the amount of county diesel fuel tax
  collected from the purchaser; and
                           (iv)  the date of the sale, distribution, or
  use;
                     (C)  exported from this state by destination state
  or country; and
                     (D) [(C)]  imported during the preceding calendar
  month, by state or country of origin; [and]
               (3)  for diesel fuel exported outside this state, proof
  of payment of tax to the destination state, in a form acceptable to
  the comptroller; and
               (4)  all shipping documents.
         (c)  An importer shall keep:
               (1)  a record showing the number of gallons of:
                     (A)  all diesel fuel inventories on hand at the
  first of each month;
                     (B)  all diesel fuel compounded or blended;
                     (C)  all diesel fuel purchased or received,
  showing the name of the seller and the date of each purchase or
  receipt;
                     (D)  all diesel fuel sold, distributed, or used,
  showing the name of the purchaser, the county in this state, and the
  date of the sale, distribution, or use; and
                     (E)  all diesel fuel lost by fire, theft, or
  accident; and
               (2)  an itemized statement showing by load the number
  of gallons of all diesel fuel:
                     (A)  received during the preceding calendar month
  for export and the location of the loading;
                     (B)  sold, distributed, or used, showing the name
  of the purchaser, the county or counties in this state, and the date
  of sale, distribution, or use;
                     (C)  exported from this state, by destination
  state or country; and
                     (D) [(C)]  imported during the preceding calendar
  month, by state or country of origin.
         (e)  A blender shall keep a record showing the number of
  gallons of:
               (1)  all diesel fuel inventories on hand at the first of
  each month;
               (2)  all diesel fuel compounded or blended;
               (3)  all diesel fuel purchased or received, showing the
  name of the seller and the date of each purchase or receipt;
               (4)  all diesel fuel sold, distributed, or used,
  showing the name of the purchaser, the county in this state, and the
  date of the sale, distribution, or use; and
               (5)  all diesel fuel lost by fire, theft, or accident.
         (g)  A motor fuel transporter shall keep a complete and
  separate record of each intrastate and interstate transportation of
  diesel fuel, showing:
               (1)  the date of transportation;
               (2)  the name of the consignor and consignee;
               (3)  the method of transportation;
               (4)  the quantity and kind of diesel fuel transported;
               (5)  full data concerning the diversion of shipments,
  including the county in this state and the number of gallons
  diverted from interstate to intrastate and intrastate to interstate
  commerce; and
               (6)  the points of origin and destination, the county
  in this state, the number of gallons shipped or transported, the
  date, the consignee and the consignor, and the kind of diesel fuel
  that has been diverted.
         (h)  A dealer shall keep a record showing the number of
  gallons of:
               (1)  diesel fuel inventories on hand at the first of
  each month;
               (2)  all diesel fuel purchased or received, showing the
  name of the seller and the date of each purchase or receipt;
               (3)  all diesel fuel sold or used, showing the date of
  the sale or use; [and]
               (4)  all diesel fuel lost by fire, theft, or accident;
  and
               (5)  all shipping documents.
         SECTION 41.50.  Section 162.217(c), Tax Code, is amended to
  read as follows:
         (c)  A supplier or permissive supplier may take a credit for
  any state gasoline tax [taxes] that was [were] not remitted in a
  previous period to the supplier or permissive supplier by a
  licensed distributor or licensed importer as required by Section
  162.214. The supplier or permissive supplier is eligible to take
  this credit if the comptroller is notified of the default within 60
  days after the default occurs. If a license holder pays to a
  supplier or permissive supplier the tax owed, but the payment
  occurs after the supplier or permissive supplier has taken a credit
  on its return, the supplier or permissive supplier shall remit the
  payment to the comptroller with the next monthly return after
  receipt of the tax, plus a penalty of 10 percent of the amount of
  unpaid taxes and interest at the rate provided by Section 111.060
  beginning on the date the credit is taken.
         SECTION 41.51.  Section 162.219, Tax Code, is amended to
  read as follows:
         Sec. 162.219.  INFORMATION REQUIRED ON DISTRIBUTOR'S
  RETURN; PAYMENT OF TAXES AND ALLOWANCES. (a) The monthly return and
  supplements of each distributor shall contain for the period
  covered by the return:
               (1)  the number of net gallons of diesel fuel received
  by the distributor during the month, sorted by product code,
  seller, point of origin, destination state, carrier, and receipt
  date;
               (2)  the number of net gallons of diesel fuel removed at
  a terminal rack by the distributor during the month, sorted by
  product code, seller, terminal code, and carrier;
               (3)  the number of net gallons of diesel fuel removed by
  the distributor during the month for export, sorted by product
  code, terminal code, bulk plant address, destination state, and
  carrier;
               (4)  the number of net gallons of diesel fuel removed by
  the distributor during the month from a terminal located in another
  state for conveyance to this state, as indicated on the shipping
  document for the diesel fuel, sorted by product code, seller,
  terminal code, bulk plant address, and carrier;
               (5)  the number of net gallons of diesel fuel the
  distributor sold during the month in transactions exempt under
  Section 162.204, dyed diesel fuel sold to a purchaser under a signed
  statement, or dyed diesel fuel sold to a dyed diesel fuel bonded
  user, sorted by product code and by the entity receiving the diesel
  fuel; [and]
               (6)  the number of net gallons delivered into a taxing
  county sorted by taxing county and purchaser; and
               (7)  any other information required by the comptroller.
         (b)  A distributor or importer who makes timely payments of
  the county tax imposed by this subchapter is entitled to retain an
  amount equal to two percent of the total county diesel fuel taxes
  remitted to the comptroller to cover administrative expenses.
         SECTION 41.52.  Section 162.224, Tax Code, is amended to
  read as follows:
         Sec. 162.224.  INFORMATION REQUIRED ON BLENDER'S RETURN.
  The monthly return and supplements of each blender shall contain
  for the period covered by the return:
               (1)  the number of net gallons of diesel fuel received
  by the blender during the month, sorted by product code, seller,
  point of origin, carrier, and receipt date;
               (2)  the number of net gallons of product blended with
  diesel fuel during the month, sorted by product code, type of
  blending agent if no product code exists, seller, and carrier;
               (3)  the number of net gallons of blended diesel fuel
  sold during the month and the license number or name, [and] address,
  and county in this state of the entity receiving the blended diesel
  fuel; and
               (4)  any other information required by the comptroller.
         SECTION 41.53.  Subchapter C, Chapter 162, Tax Code, is
  amended by adding Section 162.2245 to read as follows:
         Sec. 162.2245.  INFORMATION REQUIRED ON DEALER'S RETURN. The
  monthly return and supplements of each dealer shall contain for the
  period covered by the return:
               (1)  the number of gallons of diesel fuel inventories
  on hand at the first of each month, sorted by product code;
               (2)  the number of gallons of diesel fuel received by
  the dealer during the month, sorted by seller;
               (3)  the number of gallons of diesel fuel inventories
  on hand at the end of each month; and
               (4)  any other information required by the comptroller.
         SECTION 41.54.  Sections 162.229(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  A refund claim must be filed on a form provided by the
  comptroller, be supported by the original invoice issued by the
  seller, and contain:
               (1)  the stamped or preprinted name and address,
  including county, of the seller;
               (2)  the name and address of the purchaser;
               (3)  the date of delivery of the diesel fuel;
               (4)  the date of the issuance of the invoice, if
  different from the date of fuel delivery;
               (5)  the number of gallons of diesel fuel delivered;
               (6)  the amount of state or county diesel fuel taxes
  paid [tax], either separately stated from the selling price or
  stated with a notation that both state and county taxes are included
  if both apply [the selling price includes the tax]; and
               (7)  the type of vehicle or equipment into which the
  fuel is delivered.
         (d)  A distributor or person who does not hold a license who
  files a valid refund claim with the comptroller shall be paid by a
  warrant issued by the comptroller. For purposes of this section, a
  distributor meets the requirement of filing a valid refund claim
  for state and county diesel fuel taxes if the distributor
  designates the gallons of diesel fuel sold or used that are the
  subject of the refund claim on the monthly report submitted by the
  distributor to the comptroller.
         SECTION 41.55.  Sections 162.402(a), (c), and (d), Tax Code,
  are amended to read as follows:
         (a)  A person forfeits to the state a civil penalty of not
  less than $25 and not more than $200 if the person:
               (1)  refuses to stop and permit the inspection and
  examination of a motor vehicle transporting or using motor fuel on
  demand of a peace officer or the comptroller;
               (2)  operates a motor vehicle in this state without a
  valid interstate trucker's license or a trip permit when the person
  is required to hold one of those licenses or permits;
               (3)  operates a liquefied gas-propelled motor vehicle
  that is required to be licensed in this state, including motor
  vehicles equipped with dual carburetion, and does not display a
  current liquefied gas tax decal or multistate fuels tax agreement
  decal;
               (4)  makes a tax-free sale or delivery of liquefied gas
  into the fuel supply tank of a motor vehicle that does not display a
  current Texas liquefied gas tax decal;
               (5)  makes a taxable sale or delivery of liquefied gas
  without holding a valid dealer's license;
               (6)  makes a tax-free sale or delivery of liquefied gas
  into the fuel supply tank of a motor vehicle bearing out-of-state
  license plates;
               (7)  makes a delivery of liquefied gas into the fuel
  supply tank of a motor vehicle bearing Texas license plates and no
  Texas liquefied gas tax decal, unless licensed under a multistate
  fuels tax agreement;
               (8)  transports gasoline or diesel fuel in any cargo
  tank that has a connection by pipe, tube, valve, or otherwise with
  the fuel injector or carburetor of, or with the fuel supply tank
  feeding the fuel injector or carburetor of, the motor vehicle
  transporting the product;
               (9)  sells or delivers gasoline or diesel fuel from any
  fuel supply tank connected with the fuel injector or carburetor of a
  motor vehicle;
               (10)  owns or operates a motor vehicle for which
  reports or mileage records are required by this chapter without an
  operating odometer or other device in good working condition to
  record accurately the miles traveled;
               (11)  furnishes to a supplier a signed statement for
  purchasing diesel fuel tax-free and then uses the tax-free diesel
  fuel to operate a diesel-powered motor vehicle on a public highway;
               (12)  fails or refuses to comply with or violates a
  provision of this chapter;
               (13)  fails or refuses to comply with or violates a
  comptroller's rule for administering or enforcing this chapter;
               (14)  is an importer who does not obtain an import
  verification number when required by this chapter; [or]
               (15)  purchases motor fuel for export, on which the
  taxes [tax] imposed by this chapter have [has] not been paid, and
  subsequently diverts or causes the motor fuel to be diverted to a
  destination in this state or any other state or country other than
  the originally designated state or country without first obtaining
  a diversion number; or
               (16)  transports motor fuel to a county in this state
  other than the county stated on the shipping document.
         (c)  A person receiving motor fuel who accepts a shipping
  document that does not conform with the requirements of Section
  162.004 or 162.016(a) is liable to this state for a civil penalty of
  $2,000 or five times the amount of the unpaid tax, whichever is
  greater, for each occurrence.
         (d)  A person operating a bulk plant or terminal who issues a
  shipping document that does not conform with the requirements of
  Section 162.004 or 162.016(a) is liable to this state for a civil
  penalty of $2,000 or five times the amount of the unpaid tax,
  whichever is greater, for each occurrence.
         SECTION 41.56.  Section 162.403, Tax Code, is amended to
  read as follows:
         Sec. 162.403.  CRIMINAL OFFENSES. Except as provided by
  Section 162.404, a person commits an offense if the person:
               (1)  refuses to stop and permit the inspection and
  examination of a motor vehicle transporting or using motor fuel on
  the demand of a peace officer or the comptroller;
               (2)  is required to hold a valid trip permit or
  interstate trucker's license, but operates a motor vehicle in this
  state without a valid trip permit or interstate trucker's license;
               (3)  operates a liquefied gas-propelled motor vehicle
  that is required to be licensed in this state, including a motor
  vehicle equipped with dual carburetion, and does not display a
  current liquefied gas tax decal or multistate fuels tax agreement
  decal;
               (4)  transports gasoline or diesel fuel in any cargo
  tank that has a connection by pipe, tube, valve, or otherwise with
  the fuel injector or carburetor or with the fuel supply tank feeding
  the fuel injector or carburetor of the motor vehicle transporting
  the product;
               (5)  sells or delivers gasoline or diesel fuel from a
  fuel supply tank that is connected with the fuel injector or
  carburetor of a motor vehicle;
               (6)  owns or operates a motor vehicle for which reports
  or mileage records are required by this chapter without an
  operating odometer or other device in good working condition to
  record accurately the miles traveled;
               (7)  sells or delivers dyed diesel fuel for the
  operation of a motor vehicle on a public highway;
               (8)  uses dyed diesel fuel for the operation of a motor
  vehicle on a public highway except as allowed under Section
  162.235;
               (9)  makes a tax-free sale or delivery of liquefied gas
  into the fuel supply tank of a motor vehicle that does not display a
  current Texas liquefied gas tax decal;
               (10)  makes a sale or delivery of liquefied gas on which
  the person knows the tax is required to be collected, if at the time
  the sale is made the person does not hold a valid dealer's license;
               (11)  makes a tax-free sale or delivery of liquefied
  gas into the fuel supply tank of a motor vehicle bearing
  out-of-state license plates;
               (12)  makes a delivery of liquefied gas into the fuel
  supply tank of a motor vehicle bearing Texas license plates and no
  Texas liquefied gas tax decal, unless licensed under a multistate
  fuels tax agreement;
               (13)  refuses to permit the comptroller or the attorney
  general to inspect, examine, or audit a book or record required to
  be kept by a license holder, other user, or any person required to
  hold a license under this chapter;
               (14)  refuses to permit the comptroller or the attorney
  general to inspect or examine any plant, equipment, materials, or
  premises where motor fuel is produced, processed, blended, stored,
  sold, delivered, or used;
               (15)  refuses to permit the comptroller, the attorney
  general, an employee of either of those officials, a peace officer,
  an employee of the Texas Commission on Environmental Quality, or an
  employee of the Department of Agriculture to measure or gauge the
  contents of or take samples from a storage tank or container on
  premises where motor fuel is produced, processed, blended, stored,
  sold, delivered, or used;
               (16)  is a license holder, a person required to be
  licensed, or another user and fails or refuses to make or deliver to
  the comptroller a report required by this chapter to be made and
  delivered to the comptroller;
               (17)  is an importer who does not obtain an import
  verification number when required by this chapter;
               (18)  purchases motor fuel for export, on which the
  taxes [tax] imposed by this chapter have [has] not been paid, and
  subsequently diverts or causes the motor fuel to be diverted to a
  destination in this state or any other state or country other than
  the originally designated state or country without first obtaining
  a diversion number;
               (18-a)  transports motor fuel to a county in this state
  other than the county stated on the shipping document;
               (19)  conceals motor fuel with the intent of engaging
  in any conduct proscribed by this chapter or refuses to make sales
  of motor fuel on the volume-corrected basis prescribed by this
  chapter;
               (20)  refuses, while transporting motor fuel, to stop
  the motor vehicle the person is operating when called on to do so by
  a person authorized to stop the motor vehicle;
               (21)  refuses to surrender a motor vehicle and cargo
  for impoundment after being ordered to do so by a person authorized
  to impound the motor vehicle and cargo;
               (22)  mutilates, destroys, or secretes a book or record
  required by this chapter to be kept by a license holder, other user,
  or person required to hold a license under this chapter;
               (23)  is a license holder, other user, or other person
  required to hold a license under this chapter, or the agent or
  employee of one of those persons, and makes a false entry or fails
  to make an entry in the books and records required under this
  chapter to be made by the person or fails to retain a document as
  required by this chapter;
               (24)  transports in any manner motor fuel under a false
  cargo manifest or shipping document, or transports in any manner
  motor fuel to a location without delivering at the same time a
  shipping document relating to that shipment;
               (25)  engages in a motor fuel transaction that requires
  that the person have a license under this chapter without then and
  there holding the required license;
               (26)  makes and delivers to the comptroller a report
  required under this chapter to be made and delivered to the
  comptroller, if the report contains false information;
               (27)  forges, falsifies, or alters an invoice
  prescribed by law;
               (28)  makes any statement, knowing said statement to be
  false, in a claim for a tax refund filed with the comptroller;
               (29)  furnishes to a supplier a signed statement for
  purchasing diesel fuel tax-free and then uses the tax-free diesel
  fuel to operate a diesel-powered motor vehicle on a public highway;
               (30)  holds an aviation fuel dealer's license and makes
  a taxable sale or use of any gasoline or diesel fuel;
               (31)  fails to remit any tax funds collected by a
  license holder, another user, or any other person required to hold a
  license under this chapter;
               (32)  makes a sale of diesel fuel tax-free into a
  storage facility of a person who:
                     (A)  is not licensed as a distributor, as an
  aviation fuel dealer, or as a dyed diesel fuel bonded user; or
                     (B)  does not furnish to the licensed supplier or
  distributor a signed statement prescribed in Section 162.206;
               (33)  makes a sale of gasoline tax-free to any person
  who is not licensed as an aviation fuel dealer;
               (34)  is a dealer who purchases any motor fuel tax-free
  when not authorized to make a tax-free purchase under this chapter;
               (35)  is a dealer who purchases motor fuel with the
  intent to evade any tax imposed by this chapter or who accepts a
  delivery of motor fuel by any means and does not at the same time
  accept or receive a shipping document relating to the delivery;
               (36)  transports motor fuel for which a cargo manifest
  or shipping document is required to be carried without possessing
  or exhibiting on demand by an officer authorized to make the demand
  a cargo manifest or shipping document containing the information
  required to be shown on the manifest or shipping document;
               (37)  imports, sells, uses, blends, distributes, or
  stores motor fuel within this state on which a tax [the taxes]
  imposed by this chapter is [are] owed but has [have] not been first
  paid to or reported by a license holder, another user, or any other
  person required to hold a license under this chapter;
               (38)  blends products together to produce a blended
  fuel that is offered for sale, sold, or used and that expands the
  volume of the original product to evade paying applicable motor
  fuel taxes; or
               (39)  evades or attempts to evade in any manner a tax
  imposed on motor fuel by this chapter.
         SECTION 41.57.  Section 162.405(d), Tax Code, is amended to
  read as follows:
         (d)  An offense under Section 162.403(7), (18-a), (22),
  (23), (24), (25), (26), (27), (28), or (29) is a felony of the third
  degree.
         SECTION 41.58.  Subsection (a), Section 502.003,
  Transportation Code, is amended to read as follows:
         (a)  Except as provided by Subsection (b) and by Chapter 180,
  Transportation Code, a political subdivision of this state may not
  require an owner of a motor vehicle to:
               (1)  register the vehicle;
               (2)  pay a motor vehicle registration fee; or
               (3)  pay an occupation tax or license fee in connection
  with a motor vehicle.
         SECTION 41.59.  (a) The comptroller of public accounts'
  duties and responsibilities for the collection, administration,
  and enforcement of a county motor fuels tax as authorized by Chapter
  180, Transportation Code, as added by this Act, are specifically
  contingent on the comptroller receiving sufficient funding in
  advance of the effective date of any motor fuels tax imposed by a
  county to adequately cover the comptroller's initial
  implementation costs.
         (b)  The legislature intends that the initial implementation
  costs be funded through an interlocal agreement between the
  comptroller of public accounts and one or more local entities. The
  comptroller's duties and responsibilities under this Act are
  specifically contingent on the approval and execution of this
  agreement by the parties in a manner that results in funding being
  available to the comptroller on or before September 1, 2009. If the
  comptroller does not receive funding in a timely manner as
  determined by the comptroller, the comptroller is not required to
  enforce the provisions of this Act related to a county motor fuels
  tax.
         SECTION 41.60.  (a) A county may not impose a motor fuels
  tax under Chapter 180, Transportation Code, as added by this Act,
  before the effective date of rules adopted by the comptroller of
  public accounts under Chapter 180, Transportation Code, as added by
  this Act.
         (b)  The comptroller of public accounts shall adopt the rules
  required by Chapter 180, Transportation Code, as added by this Act,
  before the first anniversary of the date on which an agreement
  described by Section 41.59 of this Act is entered into.
         SECTION 41.61.  (a) Unless otherwise authorized by the
  constitution of this state, money collected from a county motor
  fuels tax authorized by this Act may be used only for acquiring
  rights-of-way, for constructing, maintaining, and policing public
  roadways, and for administering laws related to the supervision of
  traffic and safety on those roads.
         (b)  If the constitution of this state does not authorize the
  use of money collected under the county motor fuel tax authorized by
  this Act for transportation uses other than those described by
  Subsection (a) of this section, the county shall deposit such money
  into an account separate from the money collected under other
  provisions of Chapter 616, Local Government Code, as added by this
  Act, and may use the money only for the purposes described by
  Subsection (a) of this section.
         (c)  If the constitution of this state requires that
  one-fourth of the county motor fuels tax authorized by this Act be
  allocated to the available school fund, the county shall deposit
  such money into an account separate from the money collected under
  other provisions of this Act and shall allocate the money to the
  comptroller of public accounts for deposit in the state treasury
  for the purpose required by the constitution.
         SECTION 41.62.  (a) This section and Section ---- of this Act
  take effect immediately if this Act receives a vote of two-thirds of
  all the members elected to each house, as provided by Section 39,
  Article III, Texas Constitution. If this Act does not receive the
  vote necessary for immediate effect, this section and Section ----
  of this Act take effect August 31, 2009.
         (b)  Except as provided by Subsection (a) of this section,
  this article takes effect September 1, 2009.
  ARTICLE 42. CONFLICTS WITH FEDERAL LAW
         SECTION 42.01. (a) If the Texas Transportation Commission
  or the Texas Department of Transportation has reason to believe
  that a provision of law as added or amended by this Act is in
  conflict with a federal statute, rule, or regulation that is
  applicable to the commission, that department, or an activity of
  the commission or that department, the executive director of that
  department shall immediately notify the attorney general and
  request a determination by the attorney general as to whether the
  provision of law as added or amended by this Act is in conflict with
  the federal statute, rule, or regulation. The request for a
  determination must be in writing and accompanied by a copy of the
  applicable provision of state law, the applicable federal statute,
  rule, or regulation, and any other information pertinent to the
  issue.
         (b)  As soon as practicable, but not later than the 45th day
  after the date the attorney general receives a request for a
  determination under Subsection (a) of this section, the attorney
  general shall render a written decision determining the question
  presented. The attorney general shall send a copy to the executive
  director of the Texas Department of Transportation and to the
  presiding officer of the Transportation Legislative Oversight
  Committee.
         (c)  If the attorney general's determination is that the
  provision of state law is in conflict with the federal statute,
  rule, or regulation, the Texas Department of Transportation:
               (1)  is not required to comply with the provision of
  state law as added or amended by this Act, but only to the extent of
  the conflict; and
               (2)  if applicable, comply with the provision of state
  law as it existed immediately before the effective date of this Act.
         (d)  For purposes of the application of Subsection (c) of
  this section, the applicable provision of state law as it existed
  immediately before the effective date of this Act is continued in
  effect.
  ARTICLE 43. TRANSFERS OF CERTAIN POWERS, DUTIES, OBLIGATIONS, AND
  RIGHTS OF ACTION
         SECTION 43.01.  (a) All powers, duties, obligations, and
  rights of action of the Motor Vehicle Division and the Vehicle
  Titles and Registration Division of the Texas Department of
  Transportation are transferred to the Texas Department of Motor
  Vehicles and all powers, duties, obligations, and rights of action
  of the Texas Transportation Commission in connection or associated
  with those divisions of the Texas Department of Transportation are
  transferred to the board of the Texas Department of Motor Vehicles
  on November 1, 2009.
         (b)  The powers, duties, obligations, and rights of action of
  the portion of the Motor Carrier Division of the Texas Department of
  Transportation that is responsible for motor carrier registration
  and the enforcement of Subtitle F, Title 7, Transportation Code,
  are transferred to the Texas Department of Motor Vehicles and the
  associated powers, duties, obligations, and rights of action of the
  Texas Transportation Commission are transferred to the board of the
  Texas Department of Motor Vehicles on November 1, 2009.
         (c)  In connection with the transfers required by
  Subsections (a) and (b) of this section, the personnel, furniture,
  computers, other property and equipment, files, and related
  materials used by the Motor Vehicle Division, the Vehicle Titles
  and Registration Division, or the portion of the Motor Carrier
  Division of the Texas Department of Transportation described in
  Subsection (b) of this section are transferred to the Texas
  Department of Motor Vehicles.
         (d)  The Texas Department of Motor Vehicles shall continue
  any proceeding involving the Motor Vehicle Division, the Vehicle
  Titles and Registration Division, or the portion of the Motor
  Carrier Division of the Texas Department of Transportation
  described in Subsection (b) of this section that was brought before
  the effective date of this Act in accordance with the law in effect
  on the date the proceeding was brought, and the former law is
  continued in effect for that purpose.
         (e)  A certificate, license, document, permit, registration,
  or other authorization issued by the Motor Vehicle Division or the
  Vehicle Titles and Registration Division of the Texas Department of
  Transportation or a registration issued by the Motor Carrier
  Division of the Texas Department of Transportation that is in
  effect on the effective date of this Act remains valid for the
  period for which it was issued unless suspended or revoked by the
  Texas Department of Motor Vehicles.
         (f)  A rule adopted by the Texas Transportation Commission or
  the executive director of the Texas Department of Transportation in
  connection with or relating to the Motor Vehicle Division, the
  Vehicle Titles and Registration Division, or the portion of the
  Motor Carrier Division of the Texas Department of Transportation
  described in Subsection (b) of this section continues in effect
  until it is amended or repealed by the board of the Texas Department
  of Motor Vehicles or the Texas Department of Motor Vehicles, as
  applicable.
         (g)  The unobligated and unexpended balance of any
  appropriations made to the Texas Department of Transportation in
  connection with or relating to the Motor Vehicle Division, the
  Vehicle Titles and Registration Division, or the portion of the
  Motor Carrier Division of the Texas Department of Transportation
  described in Subsection (b) of this section for the state fiscal
  biennium ending August 31, 2009, is transferred and reappropriated
  to the Texas Department of Motor Vehicles for the purpose of
  implementing the powers, duties, obligations, and rights of action
  transferred to that department under Subsections (a) and (b) of
  this section.
         (h)  The Texas Department of Transportation shall continue,
  as necessary, to perform the duties and functions being transferred
  to the Texas Department of Motor Vehicles until the transfer of
  agency duties and functions is complete.
         SECTION 43.02.  (a) In connection with the establishment by
  this Act of the Automobile Burglary and Theft Prevention Authority
  in the Texas Department of Motor Vehicles and with the transfer by
  this Act of the duty to provide personnel and services to the
  Automobile Burglary and Theft Prevention Authority from the Texas
  Department of Transportation to the Texas Department of Motor
  Vehicles, the personnel, furniture, computers, other property and
  equipment, files, and related materials used by the Automobile
  Burglary and Theft Prevention Authority are transferred to the
  Texas Department of Motor Vehicles.
         (b)  The unobligated and unexpended balance of any
  appropriations made to the Texas Department of Transportation in
  connection with or relating to the Automobile Burglary and Theft
  Prevention Authority for the state fiscal biennium ending August
  31, 2009, is transferred and reappropriated to the Texas Department
  of Motor Vehicles for the purpose of allowing the authority to
  continue to exercise its powers, duties, and obligations under the
  auspices of that department.
         SECTION 43.03.  (a) In addition to the positions of the
  Texas Department of Transportation assigned to the Vehicle Titles
  and Registration Division, Motor Vehicle Division, Motor Carrier
  Division, and Automobile Burglary and Theft Prevention Authority
  Division that are transferred to the Texas Department of Motor
  Vehicles, it is estimated that 75 other full-time equivalent
  employee positions of the Texas Department of Transportation
  primarily support the transferred divisions and, subject to this
  section, those positions are also transferred to the Texas
  Department of Motor Vehicles. The number of positions transferred
  under this subsection may be modified by agreement of the two
  agencies in a memorandum of understanding.
         (b)  If in another Act of the 81st Legislature, Regular
  Session, 2009, the legislature establishes a maximum number of
  full-time equivalent employee positions for the Texas Department of
  Motor Vehicles, the number of positions transferred under
  Subsection (a) of this section may not result in a number of
  full-time equivalent employee positions of that department that
  exceeds the maximum.
         (c)  When filling a position described by Subsection (a) of
  this section, the Texas Department of Motor Vehicles shall give
  first consideration to an applicant who, as of September 1, 2009,
  was a full-time employee of the Texas Department of Transportation
  and primarily supported one or more of the transferred divisions.
  ARTICLE 44. APPOINTMENT OF BOARD
         SECTION 44.01.  Not later than October 1, 2009, the governor
  shall appoint the members of the board of the Texas Department of
  Motor Vehicles in accordance with Subchapter B, Chapter 1001,
  Transportation Code, as added by this Act.
  ARTICLE 45. MEMORANDUM OF UNDERSTANDING
         SECTION 45.01.  (a) The board of the Texas Department of
  Motor Vehicles and the Texas Transportation Commission shall enter
  into or revise a joint memorandum of understanding to coordinate
  the Texas Department of Motor Vehicles' and the Texas Department of
  Transportation's information systems to allow for the sharing of
  information so that each department may effectively and efficiently
  perform the functions and duties assigned to it. Neither the Texas
  Department of Motor Vehicles or the Texas Department of
  Transportation may impose or collect a fee or charge in connection
  with the sharing of information under a joint memorandum of
  understanding entered into or revised under this section.
         (b)  The Texas Department of Motor Vehicles and the Texas
  Department of Transportation shall implement the joint memorandum
  of understanding using existing personnel and resources.
         (c)  Otherwise confidential information shared under the
  memorandum of understanding remains subject to the same
  confidentiality requirements and legal restrictions on access to
  the information that are imposed by law on the department that
  originally obtained or collected the information.
         (d)  Information may be shared under the memorandum of
  understanding without the consent of the person who is the subject
  of the information.
         (e)  The memorandum of understanding required by Subsection
  (a) of this section must be entered into or revised at the first
  official meeting of the board members of the Texas Department of
  Motor Vehicles.
         SECTION 45.02.  (a) In addition to the memorandum of
  understanding required by Section 45.01 of this article, the board
  of the Texas Department of Motor Vehicles and the Texas
  Transportation Commission may enter into or revise one or more
  other joint memoranda of understanding necessary to effectuate the
  transfer of the powers and duties of the Texas Department of
  Transportation to the Texas Department of Motor Vehicles under this
  Act. A memorandum of understanding may include an agreement for the
  provision of office space, utilities, and other facility services;
  the need for full-time equivalent positions of the Texas Department
  of Transportation to provide support services in addition to the
  positions transferred to the Texas Department of Motor Vehicles
  under Section 43.01 of this Act; support services; and the transfer
  of information technology as necessary or appropriate to effectuate
  the transfer of the powers and duties of the Texas Department of
  Transportation to the Texas Department of Motor Vehicles.
         (b)  Sections 45.01(b), (c), and (d) of this article apply to
  a memorandum of understanding entered into or revised under
  Subsection (a) of this section.
  ARTICLE 46. DEPARTMENT OF MOTOR VEHICLES TRANSITION TEAM
         SECTION 46.01.  (a) The Texas Department of Transportation
  shall establish a Department of Motor Vehicles Transition Team to
  plan for and make recommendations regarding the transfer of
  obligations, property, full-time equivalent positions, rights,
  powers, and duties from the Texas Department of Transportation to
  the Texas Department of Motor Vehicles. The transition team must
  include the division directors from the Motor Vehicle Division, the
  Vehicle Titles and Registration Division, and the Motor Carrier
  Division and the Assistant Executive Director for Support
  Operations.
         (b)  Not later than October 1, 2009, the transition team
  shall report on and make recommendations to the board of the Texas
  Department of Motor Vehicles, the governor, the lieutenant
  governor, the speaker of the house of representatives, and the
  presiding officers of the senate and house committees with
  jurisdiction over transportation regarding the transfer of
  obligations, property, full-time equivalent positions, rights,
  powers, and duties from the Texas Department of Transportation to
  the Texas Department of Motor Vehicles.
  ARTICLE 47. FINANCIAL AUDIT
         SECTION 47.01.  (a) As soon as practicable after the
  effective date of this Act, the office of the state auditor shall
  conduct an initial financial audit to establish financial
  benchmarks for the Texas Department of Motor Vehicles on its
  overall status and condition in relation to funds on hand,
  equipment and other assets, pending matters, and other issues
  considered appropriate by the office of the state auditor.
         (b)  As soon as practicable after the completion of the audit
  required by Subsection (a) of this section, the results of the audit
  shall be reported by the office of the state auditor to the board of
  the Texas Department of Motor Vehicles and to the Texas
  Transportation Commission. The office of the state auditor shall
  also provide a copy of the audit to the board and the commission.
  ARTICLE 48. EFFECTIVE DATE
         SECTION 48.01.  This Act takes effect September 1, 2009.
 
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