H.B. No. 3097
 
 
 
 
AN ACT
  relating to the creation, organization, governance, duties, and
  functions of the Texas Department of Motor Vehicles, including the
  transfer of certain duties to the Texas Department of Motor
  Vehicles and the Texas Department of Licensing and Regulation, and
  to the regulation of certain franchised motor vehicle dealers;
  providing a penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. TEXAS DEPARTMENT OF MOTOR VEHICLES
         SECTION 1.01.  Title 7, Transportation Code, is amended by
  adding Subtitle M to read as follows:
  SUBTITLE M. 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 board; 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.
  ARTICLE 2.  TRANSFER OF DUTIES AND FUNCTIONS OF THE TEXAS DEPARTMENT
  OF TRANSPORTATION
  PART A. GENERAL PROVISIONS AND ADMINISTRATION
         SECTION 2A.01.  Subsection (a), Section 201.202,
  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 2A.02.  Subdivision (2), Section 201.931,
  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].
         SECTION 2A.03.  Subsection (c), Section 201.202,
  Transportation Code, is repealed.
  PART B. STATE HIGHWAY TOLL PROJECTS
         SECTION 2B.01.  Subsections (b) and (h), Section 228.055,
  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 2B.02.  Subsection (b), Section 228.056,
  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.
  PART C. CAUSEWAYS, BRIDGES, TUNNELS, TURNPIKES, FERRIES, AND
  HIGHWAYS IN CERTAIN COUNTIES
         SECTION 2C.01.  Subsections (b), (e), and (h), Section
  284.0701, 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.
  PART D. CERTIFICATE OF TITLE ACT
         SECTION 2D.01.  Subdivision (3), Section 501.002,
  Transportation Code, is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  PART E. REGISTRATION OF VEHICLES
         SECTION 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 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 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 2E.04.  Subsections (a) and (b), Section 502.053,
  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 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 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 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].
  PART F. DEALER'S AND MANUFACTURER'S VEHICLE LICENSE PLATES
         SECTION 2F.01.  Subdivisions (2) and (5), Section 503.001,
  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].
  PART G. SPECIALTY LICENSE PLATES
         SECTION 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 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 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.
  PART H. MISCELLANEOUS PROVISIONS
         SECTION 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].
  PART I. OPERATION OF BICYCLES, MOPEDS, AND PLAY VEHICLES
         SECTION 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.
  PART J. MOTOR VEHICLE SAFETY RESPONSIBILITY ACT
         SECTION 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 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 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.
  PART K. IDENTIFYING MARKINGS ON CERTAIN COMMERCIAL MOTOR VEHICLES
         SECTION 2K.01.  Subsection (d), Section 642.002,
  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.
  PART L.  MOTOR CARRIER REGISTRATION
         SECTION 2L.01.  Subdivision (1), Section 643.001,
  Transportation Code, is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  PART M.  SINGLE STATE REGISTRATION
         SECTION 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].
  PART N.  MOTOR TRANSPORTATION BROKERS
         SECTION 2N.01.  Subsection (a), Section 646.003,
  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].
  PART O.  FOREIGN COMMERCIAL MOTOR TRANSPORTATION
         SECTION 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.
  PART P. PRIVILEGED PARKING
         SECTION 2P.01.  Section 681.001(1), Transportation Code, is
  amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  PART Q. ADMINISTRATIVE ADJUDICATION OF VEHICLE PARKING AND
  STOPPING OFFENSES
         SECTION 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.
  PART R. ABANDONED MOTOR VEHICLES
         SECTION 2R.01.  Subdivision (1), Section 683.001,
  Transportation Code, is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  PART S. CONTRACTS FOR ENFORCEMENT OF CERTAIN ARREST WARRANTS
         SECTION 2S.01.  Subdivision (1), Section 702.001,
  Transportation Code, is amended to read as follows:
               (1)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
  PART T. PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM
         SECTION 2T.01.  Subdivision (2), Section 707.001,
  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 2T.02.  Subsection (b), Section 707.011,
  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 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.
  PART U. SALE OR LEASE OF MOTOR VEHICLES
         SECTION 2U.01.  Subdivision (9), Section 2301.002,
  Occupations Code, is amended to read as follows:
               (9)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 2U.02.  Subdivision (33), Section 2301.002,
  Occupations Code, is repealed.
  PART V. AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY
         SECTION 2V.01.  Subdivision (3), Section 1, Article
  4413(37), Revised Statutes, is amended to read as follows:
               (3)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 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].
  ARTICLE 3.  CONFORMING AMENDMENTS PERTAINING TO TEXAS DEPARTMENT OF
  TRANSPORTATION IN OTHER CODES
  PART A. BUSINESS & COMMERCE CODE
         SECTION 3A.01.  Subsection (b), Section 51.003, 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 3A.02.  Subsection (b), Section 105.004, 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.
  PART B. CODE OF CRIMINAL PROCEDURE
         SECTION 3B.01.  Subdivision (1), Section 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 3B.02.  Subsection (c), Article 59.04, 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.
  PART C. FAMILY CODE
         SECTION 3C.01.  Subsection (b), Section 157.316, 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 3C.02.  Subsection (a), Section 232.0022, 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.
         SECTION 3C.03.  Subsection (b), Section 232.014, Family
  Code, is amended to read as follows:
         (b)  A fee collected by the Texas Department of Motor
  Vehicles [Transportation] or the Department of Public Safety shall
  be deposited to the credit of the state highway fund.
         SECTION 3C.04.  Subsection (b), Section 264.502, Family
  Code, is amended to read as follows:
         (b)  The members of the committee who serve under Subsections
  (a)(1) through (3) shall select the following additional committee
  members:
               (1)  a criminal prosecutor involved in prosecuting
  crimes against children;
               (2)  a sheriff;
               (3)  a justice of the peace;
               (4)  a medical examiner;
               (5)  a police chief;
               (6)  a pediatrician experienced in diagnosing and
  treating child abuse and neglect;
               (7)  a child educator;
               (8)  a child mental health provider;
               (9)  a public health professional;
               (10)  a child protective services specialist;
               (11)  a sudden infant death syndrome family service
  provider;
               (12)  a neonatologist;
               (13)  a child advocate;
               (14)  a chief juvenile probation officer;
               (15)  a child abuse prevention specialist;
               (16)  a representative of the Department of Public
  Safety; and
               (17)  a representative of the Texas Department of Motor
  Vehicles [Transportation].
  PART D.  FINANCE CODE
         SECTION 3D.01.  Subdivision (9), Section 306.001, 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 3D.02.  Subdivision (10-a), Section 348.001,
  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 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.
  PART E. GOVERNMENT CODE
         SECTION 3E.01.  Subsection (d), Section 411.122, 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.
  PART F. HEALTH AND SAFETY CODE
         SECTION 3F.01.  Subsection (e), Section 382.209, 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 3F.02.  Subsection (f), Section 382.210, 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.
         SECTION 3F.03.  Subsection (a), Section 461.017, Health and
  Safety Code, is amended to read as follows:
         (a)  The Drug Demand Reduction Advisory Committee is
  composed of the following members:
               (1)  five representatives of the public from different
  geographic regions of the state who have knowledge and expertise in
  issues relating to reducing drug demand and who are appointed by the
  commissioner [executive director] of the Department of State Health
  Services [Texas Commission on Alcohol and Drug Abuse]; and
               (2)  one representative of each of the following
  agencies or offices who is appointed by the executive director or
  commissioner of the agency or office and who is directly involved in
  the agency's or office's policies, programs, or funding activities
  relating to reducing drug demand:
                     (A)  the criminal justice division of the
  governor's office;
                     (B)  the Criminal Justice Policy Council;
                     (C)  the Department of Family and Protective [and
  Regulatory] Services;
                     (D)  the Department of Public Safety of the State
  of Texas;
                     (E)  the Health and Human Services Commission;
                     (F)  the Texas Alcoholic Beverage Commission;
                     (G)  the Department of State Health Services 
  [Texas Commission on Alcohol and Drug Abuse];
                     (H)  the Texas Council on Offenders with Mental
  Impairments;
                     (I)  the Texas Department of Criminal Justice;
                     (J)  the [Texas Department of] Health and[;
                     [(K)  the Texas Department of] Human Services
  Commission;
                     (K) [(L)]  the [Texas] Department of Aging and
  Disability Services [Mental Health and Mental Retardation];
                     (L) [(M)]  the Texas Education Agency;
                     (M) [(N)]  the Texas Juvenile Probation
  Commission;
                     (N) [(O)]  the Texas Youth Commission;
                     (O) [(P)]  the Department of Assistive and
  Rehabilitative Services [Texas Rehabilitation Commission];
                     (P) [(Q)]  the Texas Workforce Commission;
                     (Q) [(R)]  the Texas Department of Motor Vehicles
  [Transportation];
                     (R) [(S)]  the comptroller of public accounts;
  and
                     (S) [(T)]  the adjutant general's department.
  PART G. HUMAN RESOURCES CODE
         SECTION 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 3G.02.  Subsection (g), Section 32.026, 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.
  PART H. LOCAL GOVERNMENT CODE
         SECTION 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 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 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 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.
  PART I. OCCUPATIONS CODE
         SECTION 3I.01.  Subsection (c), Section 554.009,
  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 3I.02.  Subdivision (9), Section 2301.002,
  Occupations Code, is amended to read as follows:
               (9)  "Department" means the Texas Department of Motor
  Vehicles [Transportation].
         SECTION 3I.03.  Subsections (a) and (b), Section 2301.005,
  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 3I.04.  Subdivisions (2) and (3), Section 2302.001,
  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 3I.05.  Subsection (b), Section 2302.0015,
  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 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 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 3I.08.  Subsection (b), Section 2302.108,
  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 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.
         SECTION 3I.10.  Subdivision (33), Section 2301.002,
  Occupations Code, is repealed.
  PART J. PENAL CODE
         SECTION 3J.01.  Subsection (c), Section 31.03, 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 3J.02.  Subsection (b), Section 31.11, 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.
  PART K. TAX CODE
         SECTION 3K.01.  Subsection (d), Section 21.02, 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 3K.02.  Subsection (d), Section 22.04, 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 3K.03.  Subdivisions (3), (11), and (14), Subsection
  (a), Section 23.121, 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 3K.04.  Subsections (f), (g), and (h), Section
  23.121, 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 3K.05.  Subsection (c), Section 23.123, 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 3K.06.  Subdivision (11), Subsection (a), Section
  23.124, 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 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 3K.08.  Subsections (a) and (f), Section 152.0412,
  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 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 3K.10.  Subsection (b), Section 152.121, 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 3K.11.  Subdivision (52), Section 162.001, 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 4. USED AUTOMOTIVE PARTS RECYCLERS
         SECTION 4.01.  Subdivision (6), Section 2302.001,
  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 4.02.  Subsection (b), Section 2302.006,
  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 4.03.  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 4.04.  Subsection (b), Section 2302.103,
  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 4.05.  Subsection (d), Section 2302.107,
  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 4.06.  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 4.07.  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)  The advisory board may not include more than one member
  from any one used automotive parts business entity.
         (e)  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.
         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.  RULES REGARDING LICENSING AND STANDARDS OF
  CONDUCT. (a) The commission shall adopt rules for licensing
  applicants, including rules for denial of an application if the
  applicant, a partner, principal, officer, or general manager of the
  applicant, or another license or permit holder with a connection to
  the applicant, has:
               (1)  before the application date, been convicted of,
  pleaded guilty or nolo contendere to, or been placed on deferred
  adjudication for:
                     (A)  a felony; or
                     (B)  a misdemeanor punishable by confinement in
  jail or by a fine exceeding $500;
               (2)  violated an order of the commission or executive
  director, including an order for sanctions or administrative
  penalties; or
               (3)  knowingly submitted false information on the
  application.
         (b)  The commission by rule shall adopt standards of conduct
  for license holders under this chapter.
         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 inspection history;
               (2)  any history of complaints involving a used
  automotive parts recycler; and
               (3)  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 general liability insurance in an amount
  not less than $250,000; and
               (3)  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 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 31st day after the date of
  acquiring the motor vehicle, submit to the Texas Department of
  Transportation 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 title or document, the Texas
  Department of Transportation 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 or sales receipt for 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.  DISMANTLEMENT OR DISPOSITION OF MOTOR
  VEHICLE.  A used automotive parts recycler may not dismantle or
  dispose 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 record of each used component part purchased by or
  delivered to the recycler. The record must include:
               (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; and
               (3)  a description of the part and, if applicable, the
  make and model of the part.
         (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.  RETENTION OF COMPONENT PARTS. (a)  A used
  automotive parts recycler shall 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)  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 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)  A used automotive parts recycler shall surrender to
  the Texas Department of Transportation for cancellation a
  certificate of title or authority, sales receipt, or transfer
  document, as required by the department.
         (b)  The Texas Department of Transportation shall provide a
  signed receipt for a surrendered certificate of title.
         Sec. 2309.358.  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 2309.359-2309.400 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 4.08.  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 4.09.  Subsection (d), Section 501.092,
  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 4.10.  Subsections (a) and (b), Section 501.095,
  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 4.11.  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 4.12.  Section 2302.253, Occupations Code, is
  repealed.
         SECTION 4.13.  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 Act.
         SECTION 4.14.  If there is a conflict between a provision of
  this Act and a provision of another Act of the 81st Legislature,
  Regular Session, 2009, that becomes law concerning the licensing or
  regulation of used automotive parts recyclers, this Act prevails
  regardless of the relative dates of enactment.
         SECTION 4.15.  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 5. MANUFACTURER OR DISTRIBUTOR OWNERSHIP, OPERATION, OR
  CONTROL OF DEALERSHIP
         SECTION 5.01.  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 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 6.  TRANSFERS OF CERTAIN POWERS, DUTIES, OBLIGATIONS, AND
  RIGHTS OF ACTION
         SECTION 6.01.  (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 6.02.  (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 6.03.  (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 7.  APPOINTMENT OF BOARD
         SECTION 7.01.  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 8. MEMORANDUM OF UNDERSTANDING
         SECTION 8.01.  (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 nor 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 8.02.  (a)  In addition to the memorandum of
  understanding required by Section 8.01 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 6.01 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)  Subsections (b), (c), and (d) of Section 8.01 of this
  article apply to a memorandum of understanding entered into or
  revised under Subsection (a) of this section.
  ARTICLE 9.  DEPARTMENT OF MOTOR VEHICLES TRANSITION TEAM
         SECTION 9.01.  (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 10.  FINANCIAL AUDIT
         SECTION 10.01.  (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 11. EFFECTIVE DATE
         SECTION 11.01.  This Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3097 was passed by the House on May 6,
  2009, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3097 on May 23, 2009, by the following vote:  Yeas 135, Nays 7,
  3 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3097 was passed by the Senate, with
  amendments, on May 19, 2009, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor