Bills of Interest Passed During 81St Legislative Session

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Bills of Interest Passed During 81St Legislative Session

Bills of Interest Passed During 81st Legislative Session

Bills of Interest to State Agencies:

HB 464 by Paxton. Effective 9/1/09 This legislation requires the LBB to prepare a "dynamic" fiscal impact statement for bills and resolutions that raise or lower the rate or amount of a tax or fee and for which a fiscal note is prepared indicating a positive or negative impact on revenue of at least $75 million annually.

The dynamic fiscal impact statement will project for five years the estimated fiscal and economic impacts of raising or lowering the rate or amount of the tax or fee.

Five years after enactment of a bill for which a dynamic fiscal impact statement was prepared, the comptroller will submit a report to the legislature that assesses the accuracy of the relevant fiscal note and the accuracy of the relevant dynamic fiscal impact statement prepared for the bill.

Agencies submit fiscal impact statements to assist the LBB in preparing traditional fiscal notes. It is not known at this time if the LBB will require agencies to also submit dynamic fiscal notes as well.

HB 605 by Farabee. Effective 9/1/2009 This legislation provides that reimbursement for the number of miles traveled by a state employee may not exceed the number of miles of the most cost effective route that is also a “reasonably safe” route between the origin of the state employee's travel and the final duty point of the state employee. Before enactment of this legislation, employees are reimbursed only for the most cost-effective route. The legislation repeals a provision requiring the comptroller to issue a mileage guide showing the number of miles for the shortest route between points. It adds a requirement that mileage be determined based on either the vehicle's odometer or an electronic mapping service. This change applies only to the determination of reimbursable mileage for state employee travel occurring on or after January 1, 2010.

HB 963 by Guillen. Effective 6/19/2009 This legislation relates to the eligibility of certain applicants for occupational licenses. The bill defines “License” to mean a license, certificate, registration, permit, or other authorization that is issued by a licensing authority. A “Licensing authority” is defined as a department, commission, board, office, or other agency of the state that issues a license. The bill would allow a person to request a licensing authority to issue a criminal history evaluation letter if the person has reason to believe that the applicant is ineligible for the license due to a conviction or deferred adjudication for a felony or misdemeanor offense. The request must state the basis for the person's potential ineligibility. The licensing authority is provided with the power to investigate such requests. If it is determined that there is no ground for ineligibility, the authority must notify the requestor in writing of the authority's determination on each ground of potential ineligibility no later than 90 days after the date the authority receives the request. If found ineligible for a license the licensing authority is required to issue a letter setting out each basis for potential ineligibility and the authority's determination as to eligibility no later than 90 days after the date the authority receives the request. Allows the licensing authority to charge a person requesting an evaluation a fee to cover the cost of administering this legislation. Requires a department, commission, board, office or other agency that issues occupational licenses to adopt rules no later than September 1, 2010.

The bill changes the types of convictions that can be used to deny or revoke an occupational license. A license authority can take administrative action for any conviction that relates to the occupation, any conviction that happened within the previous five years, or violent sexual offenses and offenses in which community supervision do not apply such as murder, kidnapping, aggravated robbery and sexual assault, and indecency with a child.

HB 1043 by Orr. Effective 9/1/09 This legislation provides that employment preference is to be given to certain former foster children in the state foster care system. This employment preference entitlement is only given to eligible individuals 25 years of age or younger. The bill also includes a provision that a decision must be made on a complaint within 15 days of the date that a complaint is filed.

HB 1462 by Pickett. Effective 9/1/09 This legislation grants up to 60 hours per year of time off from work without reduction in pay or leave to state employees who volunteer for the Court Appointed Special Advocates (CASA) program.

HB 1830 by Corte. Effective 9/1/09 HB 1830 allows the Department of Information Resources (DIR) to access criminal history record information for employees and contractors who provide network or security services for DIR.

The act allows the governing board of DIR to deliberate certain security or infrastructure issues in a closed meeting. The bill would also allow DIR to disclose information related to security or infrastructure issues to a bidder if the governing board determines that providing the information is necessary for the bidder to provide an accurate bid.

The act specifically exempts from state public information laws confidential network security information, system interface, and stored or critical information vulnerable to inappropriate use. However, such information may be disclosed to a bidder if a governmental body determines that providing the information is necessary for the bidder to provide an accurate bid.

The act would require state agencies to provide an electronic copy of its vulnerability report to DIR, the state auditor, the agency's executive director, and any other information technology security oversight group specifically authorized by the legislature to receive the report.

DIR must adopt rules requiring, in state agency contracts for network hardware and software, a statement by the vendor certifying that the network hardware or software has undergone independent certification testing for known and relevant vulnerabilities. The rules may provide for vendor exemptions and establish certification standards for testing network hardware and software for known and relevant vulnerabilities. Unless otherwise provided by rule, the required certification testing must be conducted under maximum load conditions in accordance with published performance claims of a hardware or software manufacturer

HB 2004 by McCall. Effective 9/1/09 This legislation relates to a breach of computer security involving sensitive personal information maintained by a state agency or local government. This bill requires state agencies and local governments to inform customers that their sensitive data may have been released after a breach of security. Specifically, the act amends the Government Code to require state agencies and local governments that own, license, or maintain computerized data that includes sensitive personal information to comply with the notification requirements of Business & Commerce Code Section 521.053.

The act amends the Business & Commerce Code to ensure the definition of “sensitive personal information” includes information related to: physical or mental health, providing health care, or payment for the health care.

The act amends the Business & Commerce Code to include in the definition of “breach of system security” encrypted data if the person accessing the data has the decryption key.

The Health and Safety Code is amended to ensure protected health information includes any information that reflects that an individual received health care from a covered entity and is not public information and subject to disclosure.

HB 2283 by Truitt. Effective 9/1/09 This legislation makes changes to the TexaSaver Program, the 401(k) and 457 plans offered to state employees for voluntary retirement savings. The Employees Retirement System (ERS) would expand state employee savings plans to add qualifying Roth plans. Employee contributions are to be made with after-tax dollars, the account grows tax-free, and withdrawals after age 59 ½ are not subject to income tax provided the account has been held for five years or more. The legislation also allows the state to contribute matching funds to the 401(k), contingent on legislative appropriation and assurances that ERS receives amounts sufficient to cover normal cost and has a funded ratio of 90 percent or higher. The 81st Legislature did not pass separate legislation providing for such ERS matching contributions. This legislation requires that all state employees, regardless of hire date, will participate in the 401(k) plan by August 31, 2010, unless the employee opts out.

HB 2521 by Pickett. Effective 9/1/09 The bill would amend the Government Code to require each state agency conducting an advertising campaign that includes a commercial to give preference to a company located in Texas if the services meet state requirements regarding service and quality, and if the cost does not exceed the cost of similar services from outside the State.

For the provisions of the bill, the Music, Film, Television, and Multimedia Office within the Office of the Governor would have exclusive rulemaking authority for purposes of determining advertising campaign requirements, establishing a bid process, and establishing criteria to determine whether a commercial production company or advertising agency is located in this State.

HB 2559 by Truitt. Effective 9/1/09 This legislation affects several operational areas of the Employees Retirement System (ERS) by providing benefits protection for current employees and members, making system changes for new hires, and improving the state’s retirement fund financial position.

The bill does not change when an active employee is eligible to retire or how their retirement benefit will be calculated. The bill also does not change any current retiree's benefits. In all of these situations, an active employee can still retire using the "Rule of 80", and their retirement benefit will be calculated using the existing formula.

Under the provisions of this bill, state employee contribution rates to ERS would increase from the current 6% rate to up to 6.5%, provided that if the state contribution rate is less than 6.5%, then the employee contribution rate would be set equal at the same rate as the state contribution rate, which is currently 6.45%, effective 9/1/09.

The bill also provides that current employees who retire on or after 5/31/09 must wait 90 days before they may return to state employment. State agencies that employ return to work retirees on or after 9/1/09 will also be subject to a surcharge payable to ERS equal to the amount that the agency would remit for an active employee (6.45%, see above for more information).

The bill's provisions relating to new retirement benefits apply to future employees and members only. These two groups are:

• employees who first start working for the state on or after 9/1/09; and

• former state employees who withdrew all of their money from their ERS retirement account, then come back to work for the State on or after 9/1/09.

For such employees, a new normal retirement age of 60 will also be established, although members will be able to retire after meeting the rule of 80 with a 5% annuity reduction for each year under 60, up to five years. The reduction will be capped at 25%.

The alternative vesting rule for such employees is also changed from age 60 with five years of service to age 65 with 10 years of service. Annuities will also be calculated based on the highest 48 months pay rather than on the highest 36 months.

Future employees and members will also not be eligible to use accrued sick and annual leave to advance retirement eligibility dates.

HB 2730 by Kolkhorst. Effective 9/1/09 DPS Sunset bill Includes a provision to raise parking fines in the Capitol Complex area from $10 to $25. The money collected will be deposited into General Revenue and be appropriated to DPS for security and parking in the highway patrol district that includes the Capitol complex.

HB 2893 by Hochberg. Effective 9/1/09 This legislation allows the Texas Education Agency to establish sites in school districts or campuses that would demonstrate the use of technology for improving teaching and learning, leverage digital tools and resources to extend learning opportunities from school to home, and exemplify instructional practices and lessons that support learning in the classroom and home. The technology demonstration sites project contemplated in this act would be required to leverage existing home computing devices or provide access through electronic device check-out to extend learning at home.

Current law requires a state agency’s surplus property to be made available to other state agencies, political subdivisions, or assistance organizations. This legislation says that if a transfer is not made during the initial advertisement period, a state agency shall make the equipment available to the commissioner of education for use in the lending program described above. Agencies may not collect a fee or other reimbursement for transfers made under the lending program.

Current law requires that after the initial advertisement period, the data processing equipment must be transferred to a school district, an assistance organization on behalf of a school district, or the Texas Department of Criminal Justice. As a result of this legislation it must now be made available to the commissioner of education.

HB 3097 by McClendon. Effective 9/1/09.

This legislation creates the Texas Department of Motor Vehicles (DMV). The DMV board must organize the department into divisions to accomplish the department's functions and the duties assigned to it, including divisions for Administration, Motor Carriers, Motor Vehicle Board, and Vehicle Titles and Registration. The department is abolished September 1, 2015 unless continued through the sunset process.

The DMV board consists of nine members appointed by the Governor with the advice and consent of the Senate. Three members must be persons who hold a dealer's license 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. One member must be a tax assessor-collector. One member must be a representative of a law enforcement agency of a county or municipality. One member must be a representative of the motor carrier industry. The remaining two members must be public members. A person required to register as a lobbyist may not serve on the board. Board members will serve staggered six-year terms, with the terms of either one or two members expiring February 1 of each odd-numbered year. The Governor must appoint one of the board members as the chair. The board must elect one of its members to serve as vice-chair.

The chair is given many duties, including presiding over board meetings and serving as the departmental liaison with the Governor and the Office of State-Federal Relations to maximize federal funding for transportation. The board is required to hold quarterly board meetings, and to have special meetings at the call of the chair. The board must consider ways in which the department's operations can be improved and periodically provide a report to the legislature concerning potential statutory changes that would improve the operation of the department.

Establishes the Automobile Burglary and Theft Prevention Authority in the DMV. Provides that the Authority is not an advisory body to the DMV.

TRANSFER OF POWERS, DUTIES, OBLIGATIONS, AND RIGHTS OF ACTION TO DMV

The bill transfers duties and functions of TxDOT to the DMV. All powers, duties, obligations and rights of action of TxDOT's Motor Vehicle Division (MVD) and the Vehicle Titles and Registration (VTR) are transferred to the DMV. All powers, duties, obligations, and rights of action of the Texas Transportation Commission in connection or associated with those divisions of TxDOT are transferred to the board of the DMV on November 1, 2009.

The powers, duties, obligations, and rights of action of the portion of the Motor Carrier Division (MCD) that is responsible for motor carrier registration and its enforcement of such is transferred to the DMV, and the related powers of the Transportation Commission are transferred to the board of the DMV on November 1, 2009.

In addition to the positions of TxDOT assigned to VTR, MVD, MCD, and ABTPA that are transferred to the DMV, it is estimated that 75 other full-time equivalent employee (FTEs) positions of TxDOT primarily support the transferred divisions. These positions are also transferred to the DMV. The number of positions transferred may be modified by agreement of the two agencies in a memorandum of understanding. When filling a position within the 75 FTE allotment, the DMV must give first consideration to an applicant who, as of September 1, 2009, was a full-time employee of TxDOT and primarily supported one or more of the transferred divisions.

No later than October 1, 2009, the Governor must appoint the members of the DMV board.

HB 4586 by Pitts. Effective 6/19/09

This legislation makes supplemental appropriations to numerous state agencies, appropriates funds received under the American Recovery and Reinvestment Act (ARRA), and imposes reporting requirements on agencies receiving ARRA funds.

This legislation includes a provision that provides state employees with a single retention payment of $800.00 in August 2009. Eligibility requirements for this payment are that employees who were CONTINUOUSLY employed by an agency from March 31, 2009 through August 1, 2009, earn less than Either $8,334.00 per month or $100,000 per year, and do not receive pay increases elsewhere in the Appropriations bill.

Regarding stimulus funds, none of the ARRA funds may be expended for any purpose other than those identified by this Act without prior approval of the governor and Legislative Budget Board (LBB).

A state agency shall notify the governor, comptroller, LBB, and state auditor's office whenever the federal government does not approve an application by the agency to spend the funds in a particular manner.

The notice may include a proposed alternative use of the funds. Unless the governor and the LBB issue a written disapproval of a proposed alternative use within 15 business days after receiving the notification, the agency may expend the funds in accordance with the proposed alternative use.

Before expending any federal ARRA funds, each agency shall notify the LBB, the governor, and the comptroller of any changes in federal law, rules, or regulations related to programs that receive appropriations under this Act that could create a future fiscal obligation to the state beyond the state fiscal year beginning September 1, 2010. If after the 15th business day after notification from the agency the LBB and the governor have not both issued a written disapproval of the expenditure, the agency or institution may expend the funds.

Each state agency shall certify to the LBB, the governor, and the comptroller how the use of the funds complies with state law, federal law, rules, regulations, and other relevant guidance. The certification must include a statement that the agency's chief executive and executive staff have knowledge of the ARRA law and that those persons in their official capacity accept responsibility that the agency's use of federal ARRA funds comply with applicable federal law, state law, rules, regulations, and relevant guidance.

The comptroller, in cooperation with the state auditor, may prescribe and implement any payment and post-payment audit procedures considered necessary to ensure compliance with this legislation. Each state agency receiving federal ARRA funds must comply with reporting requirements prescribed by the comptroller and state auditor.

To the extent allowable under ARRA, agencies shall give priority to expenditures that do not recur beyond the two-year period that begins on the effective date of the Act.

Each state agency shall develop and submit a plan to the LBB and the governor providing details on the entity's intended use of appropriations received from money available under ARRA. The plan shall include a summary of any ARRA funds spent, allocated, or encumbered on or before August 31, 2009. The report shall be delivered not later than September 30, 2009. Unless the LBB and the governor issue a written disapproval of proposed expenditures under the plan within 15 business days after September 30, 2009, the agency or institution may expend the funds in accordance with the plan.

Each agency shall submit quarterly reports on the expenditure of ARRA funds. The report must include the estimated number of jobs that will be created or retained in this state and the number of full-time equivalent positions that will be created at the agency. The quarterly reports must be submitted on or before December 31, March 31, June 30, and September 30 of each year to the governor, LBB, state auditor's office, and comptroller. An agency’s reports made to the LBB and the federal government must be made available on the agency’s website with a link to the state auditor's office fraud hotline.

SB 1 by Ogden. Effective 9/1/09

State employees did not receive a pay raise in the Appropriations bill.

The State Auditor’s State Classification Office proposed changes to the State Classification Plan (found in Article IX). These changes were a result of a market study that determined the competitiveness of the state’s job classifications to similar jobs in both private and public sectors. Key study findings revealed that only 54.5 percent of the reviewed positions compared favorably with the market. The implementation of the proposed changes will increase the state’s market competitiveness in 83.2% benchmark positions having comparable market salary changes.

SB 671 by Shapleigh. Effective 9/1/2010

This legislation authorizes a member, committee, or agency of the legislature required by a governmental body to sign a confidentiality agreement to seek a ruling from the attorney general about whether the information covered by the confidentiality agreement is confidential by law. If the attorney general issues a ruling stating that some or all of the information covered by the agreement is not confidential by law, the legislation provides that a confidentiality agreement is void to the extent that the attorney general ruled that the information was not confidentially, but the agreement is otherwise left intact.

This would require the attorney general by rule to establish procedures and deadlines for receiving information necessary to decide the matter and briefs from the requestor, the governmental body, and any other interested person. It also requires the attorney general to promptly render a decision, determining whether the information covered by the confidentiality agreement is confidential under law, not later than the 45th business day after the date the request was received. The attorney general would need to issue a written decision on the matter and provide a copy of the decision to the requestor, the governmental body, and any other interested person who submitted necessary information or a brief about the matter.

The requestor or the governmental body is authorized to appeal a decision of the attorney general to a Travis County district court. If a person claims a proprietary interest in the information affected by the decision, that person is authorized to appeal a decision of the attorney general under this subsection to a Travis County district court.

SB 704 by Nelson. Effective 9/1/09

This legislation relates to pharmacy benefit manager contracts and services. It provides that programs covering multiple-month supplies of maintenance drugs may be filled at community retail pharmacies at the same out-of-pocket cost and at the same reimbursement rate as mail-order pharmacies.

SB 745 by Duncan. Effective 9/1/09

SB 745 amends the Government Code to authorize a state agency's chief administrator to electronically communicate the required advance written approval for any travel related to official state business for which reimbursement for travel expenses is claimed or for which an advance for travel expenses to be incurred is sought. The bill removes provisions that required a copy of the written approval to be submitted with a travel voucher to the comptroller of public accounts.

The act requires a travel voucher to be supported by a description of the official state business performed. The comptroller is authorized to require the description, information, and documentation either on a form adopted by the comptroller, by electronic means, by submitting receipts, or by any combination of those.

The comptroller is authorized to require the description, information, and documentation relating to a travel expense payment or reimbursement to be maintained in paper form or electronically.

SB 833 by Carona. Effective 9/1/09

This legislation allows the accrual of vacation and sick leave for certain state employees on an unpaid leave of absence during military duty. The leave accruals are to be credited to the employee's leave balance upon return to active state employment

SB 1003 by Deuell. Effective 9/1/09

This bill administratively attaches the Office of State Federal Relations (OSFR) to the Office of the Governor, subjecting OSFR to Sunset review in six years. The bill also provides strict contracting guidelines for the OSFR, if it chooses to contract with federal-level government relations consultants. Additionally, the bill requires state agencies and political subdivisions to report federal level government relations contracts to the Office. SB 1068 by Wentworth. Effective 9/1/09

This legislation allows a governmental body to redact certain personal information that an employee or official does not want made public without requesting an Attorney General (AG)'s opinion. It also allows for the redaction of information related to a public officer or employee if such disclosure would pose a substantial risk of physical harm or jeopardy to personal safety. If a governmental body redacts without seeking an AG ruling, the requestor is provided with the option to seek an AG ruling to determine if non-disclosure was correct. In such a circumstance, a requestor may be provided with the following information: a description of the information not disclosed; a citation to this section; and instructions on how the requestor may seek an AG opinion.

SB 1474 by Nichols. Effective 9/1/09

This legislation authorizes certain "emergency services personnel" to use accrued compensatory time (comptime) within 18 months following the end of the workweek in which the comptime was accrued. The bill's definition of eligible "emergency services personnel" includes those individuals who are required, in the course and scope of their employment, to provide services for the benefit of the general public during emergency situations. The legislation also permits state agencies, subject to approval from the administrative head of the applicable agency, to pay such employees their regular hourly salary rate for all or part of the hours of comptime off accrued during a declared disaster in the preceding 18-month period. In doing so, the employee's comptime balance must be reduced by one hour for each hour the employee is paid accrued comptime.

SB 1629 by Wentworth. Effective 9/1/09

In the 2007 regular session, legislation was enacted to authorize a governmental body to establish a reasonable limit on the amount of time that personnel of the governmental body are required to spend producing public information, without recovering its costs attributable to that personnel time. The legislation stated that it did not apply to certain requestors including members of the radio, television and print newspaper media; i.e. that the governmental body could not establish reasonable limits on the amount of time its personnel is required to spend producing public information if requestor is a member of the radio, television or print newspaper media.

SB 1629 further extended the types of media organizations who are exempt from a governmental body’s limits of time spent producing public information without recovering its costs attributable to personnel time.

SB 1941 by Shapiro. Effective 6/11/09

The Texas Save and Match program encourages Texans to save towards attending an institution of higher learning by providing state matching contributions to existing prepaid tuition account holders in the Texas Tuition Promise Fund, which is sponsored by the State Comptroller of Public Accounts. This legislation establishes the Texas Save and Match program as an eligible charitable organization entitled to participate in a state employee charitable campaign, which will allow state employees to authorize a payroll deduction for charitable contributions to the program.

SB 2298 by Watson. Effective 6/9/09 This legislation allows state agencies to pay employees who are exempt from earning overtime for the hours of comptime accrued by the employee during a declared disaster or emergency. The bill further provides for non-exempt employees to be paid for comptime earned for work directly related to a disaster or emergency if they do not earn overtime, instead.

The bill also removes the six-month merit increase limitations for state employees if a merit payment is made in relation to the employee’s performance during a natural disaster or other extraordinary circumstance. Payment must be supported by written documentation and requires agency head approval.

Lastly, the legislation allows employees to earn comptime for time worked during any calendar week at their personal residence with advance supervisory approval.

Miscellaneous Bills Passed:

HB 55 by Branch. Effective 9/1/09 This bill bans driver usage of a wireless communication device within an active school zone unless the vehicle is stopped, or the wireless communication device is used with a hands-free device. Certain ban exceptions relate to operators of authorized emergency vehicles, and operators licensed by the Federal Communications Commission. The bill further prohibits a passenger bus operator from using a wireless communication device under any circumstance when a minor is present on the bus unless the vehicle is stopped. The bill requires a municipality, county, or other political subdivision that enforces this ban to post a sign at the entrance to each school crossing zone. Defenses to prosecution from an offense include an emergency call to: an emergency response service, including a rescue, emergency medical, or hazardous material response service; a hospital; a fire department; a health clinic; a medical doctor's office; an individual to administer first aid treatment; or a police department; or if a sign required by the bill was not posted at the entrance to the school crossing zone at the time of an offense.

HB 339 Phillips. Effective 9/1/09 This bill requires school districts to consider offering a driver education course for a fee. The bill also increases the hours of behind-the-wheel driving instruction a teen receives, and requires the Department of Public Safety to conduct a driving test for each applicant under 18 years of age and to collect statistics to analyze the effectiveness of different methods of driver education. The bill increases the age to 21 to be eligible for a driver license without completing a driver education course. This also requires DPS to gather information on traffic accidents involving new licensees and the driver education course they completed. The bill further prohibits the use of a wireless device by a teen while operating a vehicle within the first 12 months of being licensed, except in case of an emergency.

HB 537 by Berman. Effective 9/1/09 This bill makes multiple changes to child safety seat and seat belt requirements. The bill removes an exception that allowed a person to transport a child in a 15 passenger van without a child safety seat for medical transportation purposes. It also clarifies that it is an offense to allow a child under 17 to ride in a 15 passenger van without a safety seat belt if the seat is equipped with a seat belt. The bill also makes it an offense for the minor who is 15 years of age or older to ride in a vehicle without a seat belt. The bill also prohibits an operator of a motorcycle from carrying another person on the motorcycle unless the person is at least five years of age. A violation would be a Class C misdemeanor with a fine of $100 to $200. This provision applies only to motorcycles used on public roads and does not prohibit an operator from carrying a passenger younger than five seated in a sidecar attached to a motorcycle.

HB 1310 by Solomons. This Act takes effect September 1, 2009, except Section 1 takes effect January 1, 2010. Relating to the use of a tanning facility device by a minor. Prohibits a person younger than 18 years of age from using a tanning device unless the person’t parent or legal guardian appears in person at the tanning facility and consents in writing for the person to use the device. Before any person younger than 18 uses the tanning device, the person must give the operator a written informed consent statement signed and dated by the person and the person ’s parent or legal guardian stating that the person and the parent or legal guardian have read and understood the advisory statement issued by the Texas Medical Board, warning of the dangers of indoor and outdoor tanning and its association with skin cancer, eye damage, and other health risks. The minor must also agree to use protective eyewear at all times while using the tanning device.

HB 1801 by Bohac. Effective 6/19/2009 This bill adds certain school supplies to the list of items exempt from sales and use taxes during the sales tax holiday. It provides an exemption from the sales tax during this time for certain backpacks and school supplies specified by the Streamlined Sales and Use Tax Agreement.

HB 2012 by Vaught. Effective 9/1/09 This act is known as Eric's Law. This bill creates two new punishment enhancements: a Class B misdemeanor if a person drives with a suspended license and without insurance; and a third degree felony if the person driving without insurance and a valid driver's license and has an accident in which someone is seriously injured or dies as a result of that accident.

HB 2553 by Hilderbran. Effective 9/1/09 and 9/1/11 The sections of the bill pertaining to golf carts and ROVs go into effect on September 1, 2009, while the streamlined motor vehicle registration fees become effective on September 1, 2011.

This bill includes provisions relating to recreational off-highway vehicles (ROVs) and golf carts, and also streamlines motor vehicle registration fees.

Provides that a golf cart that is operated at a speed of no more than 25 miles per hour (mph) is required to display a slow-moving vehicle emblem when it is operated on a public highway. The bill provides that TxDOT cannot register a golf cart for operation on a public highway regardless of whether any alteration has been made to the golf cart. However, the department may issue license plates for a golf cart owner who resides on real property that is owned or under the control of the United States Corps of Engineers and is required by that agency to register the owner ’s golf cart, and is in a county that borders another state and has a population of more than 110,000 but less than 111,000 (Grayson County). The bill allows a golf cart to be operated in 1) a master planned community, 2) on a public or private beach, or 3) on a public highway for which the posted speed limit is no more than 35 mph and is being operated during the daytime and no more than two miles from where the golf cart is usually parked and for transportation to or from a golf course. TxDOT or a county or municipality may prohibit the operation of a golf cart on a public highway if it is determined that there is a safety issue. A municipality may allow a golf cart to be operated on all or part of a public highway if it is in the corporate boundaries of the municipality and if the speed limit on the roadway is not more than 35 mph. Golf carts operated in accordance with this law must be equipped with headlamps, tail lamps, reflectors, a parking brake, and mirrors. A golf cart is allowed to cross an intersection, including a road or street that has a posted speed limit of more than 35 mph.

The remainder of the bill attempts to simplify and standardize motor vehicle registration fees. A major part of the simplification is a decrease of the more than 1,600 heavy vehicle fees to seven categories. The registration fee for all vehicles, except trailers and motorcycles, weighing 6,000 pounds or less is also standardized. Some fees are increased, but some are reduced. The bill sets the fee for the registration of a moped at $30. Regarding fees for vehicles that weigh 6,000 pounds or less, the fee for a registration year is set at $50.75 instead of having 3 categories which were priced at $40.50, $50.50, and $58.50 and that was based on the age of the vehicle.

HB 2556 by Solomons. Effective 9/1/09 This legislation relates to the rights and duties of the parties to a motor vehicle retail installment contract or a conditional delivery agreement. It defines "conditional delivery agreement" as a contract between a retail seller and prospective retail buyer under the terms of which the retail seller allows the prospective retail buyer the use and benefit of a motor vehicle for a specified term. Provides that a conditional delivery agreement may not exceed a term of 15 days. If a prospective retail buyer tenders to a retail seller a trade-in motor vehicle in connection with a conditional delivery agreement, the parties must agree on the value of the trade-in motor vehicle. The conditional delivery agreement must contain the agreed value of the trade-in motor vehicle, and the retail seller must use reasonable care to conserve the trade-in motor vehicle while the vehicle is in the retail seller ’s possession. If the parties to a conditional delivery agreement do not subsequently enter into a retail installment contract for the sale of the motor vehicle that is the subject of the conditional delivery agreement, the retail seller must return the trade-in vehicle to the prospective buyer with 7 days. It must be in the same condition as it was at the time of the execution of the agreement. Any down payment must also be returned. If the trade-in motor vehicle cannot be returned in the same condition as it was, the prospective retail buyer must be provided with a sum of money equal to the agreed value of the trade-in motor vehicle. If a prospective retail buyer returns a motor vehicle under a conditional delivery agreement at the request of the retail seller, the retail seller must return the trade-in vehicle at the same time that the motor vehicle under the conditional delivery agreement is returned by the prospective retail buyer.

HB 2654 by Oliveira. Effective 9/1/09 This legislation relates to the imposition of the motor vehicle sales tax on motor vehicles transferred as the result of a gift. The bill changes the definition of "sale" to include a transaction in which a motor vehicle is transferred to another person without payment of consideration and that does not qualify as a gift. This means that what used to be a “gift” (no payment of consideration), is now subject to taxation on presumptive value unless the gift is received by a close relative or through inheritance. The bill also requires notarization of the joint statement that the donor and beneficiary must submit when a vehicle is transferred by gift. The joint statement must describe the nature of the transaction and the relationship between the principal parties.

HB 3517 by Gattis. Effective 6/19/09 This legislation repeals a provision in statute which requires applicants for certificates of title to submit their social security numbers with their title applications. The repealed statute was originally passed for child support enforcement reasons, but according to the Office of the Attorney General, it has not been used since agencies' computers have been unable to "talk together".

SB 61 by Zaffirini. Effective 9/1/09 This bill requires the use of a child passenger safety seat for a child younger than 8 years of age, unless the child is taller than 4 feet nine inches tall. The bill would amend the existing fine structure to be $25 for a first offense, and not more than $250 for a second or subsequent offense.

SB 1617 by Wentworth. Effective 9/1/09 This legislation relates to the titling and registration of certain motor vehicles. It requires the certificate of title for a motor vehicle to contain a notice sufficient to inform a purchaser that the vehicle has been repurchased or replaced. It provides that a seller who files a vehicle transfer notification with TxDOT has no liability after the transfer and that a copy of the form, filed with the department, is proof of the filing. The bill precludes registration denial on a vehicle if the vehicle was purchased and sold by a licensed motor vehicle dealer in regard to red light camera enforcement and failure to pay a traffic fine.

Miscellaneous Bills Passed:

HB 55 by Branch. Effective 9/1/09 This bill bans driver usage of a wireless communication device within an active school zone unless the vehicle is stopped, or the wireless communication device is used with a hands-free device. Certain ban exceptions relate to operators of authorized emergency vehicles, and operators licensed by the Federal Communications Commission. The bill further prohibits a passenger bus operator from using a wireless communication device under any circumstance when a minor is present on the bus unless the vehicle is stopped. The bill requires a municipality, county, or other political subdivision that enforces this ban to post a sign at the entrance to each school crossing zone. Defenses to prosecution from an offense include an emergency call to: an emergency response service, including a rescue, emergency medical, or hazardous material response service; a hospital; a fire department; a health clinic; a medical doctor's office; an individual to administer first aid treatment; or a police department; or if a sign required by the bill was not posted at the entrance to the school crossing zone at the time of an offense.

HB 339 Phillips. Effective 9/1/09 This bill requires school districts to consider offering a driver education course for a fee. The bill also increases the hours of behind-the-wheel driving instruction a teen receives, and requires the Department of Public Safety to conduct a driving test for each applicant under 18 years of age and to collect statistics to analyze the effectiveness of different methods of driver education. The bill increases the age to 21 to be eligible for a driver license without completing a driver education course. This also requires DPS to gather information on traffic accidents involving new licensees and the driver education course they completed. The bill further prohibits the use of a wireless device by a teen while operating a vehicle within the first 12 months of being licensed, except in case of an emergency.

HB 537 by Berman. Effective 9/1/09 This bill makes multiple changes to child safety seat and seat belt requirements. The bill removes an exception that allowed a person to transport a child in a 15 passenger van without a child safety seat for medical transportation purposes. It also clarifies that it is an offense to allow a child under 17 to ride in a 15 passenger van without a safety seat belt if the seat is equipped with a seat belt. The bill also makes it an offense for the minor who is 15 years of age or older to ride in a vehicle without a seat belt. The bill also prohibits an operator of a motorcycle from carrying another person on the motorcycle unless the person is at least five years of age. A violation would be a Class C misdemeanor with a fine of $100 to $200. This provision applies only to motorcycles used on public roads and does not prohibit an operator from carrying a passenger younger than five seated in a sidecar attached to a motorcycle.

HB 1310 by Solomons. Effective xxx Relating to the use of a tanning facility device by a minor. Prohibits a person younger than 18 years of age from using a tanning device unless the person’t parent or legal guardian appears in person at the tanning facility and consents in writing for the person to use the device. Before any person younger than 18 uses the tanning device, the person must give the operator a written informed consent statement signed and dated by the person and the person ’s parent or legal guardian stating that the person and the parent or legal guardian have read and understood the advisory statement issued by the Texas Medical Board, warning of the dangers of indoor and outdoor tanning and its association with skin cancer, eye damage, and other health risks. The minor must also agree to use protective eyewear at all times while using the tanning device.

HB 1801 by Bohac. Effective 6/19/2009 This bill adds certain school supplies to the list of items exempt from sales and use taxes during the sales tax holiday. It provides an exemption from the sales tax during this time for certain backpacks and school supplies specified by the Streamlined Sales and Use Tax Agreement.

HB 2012 by Vaught. Effective 9/1/09 This act is known as Eric's Law. This bill creates two new punishment enhancements: a Class B misdemeanor if a person drives with a suspended license and without insurance; and a third degree felony if the person driving without insurance and a valid driver's license and has an accident in which someone is seriously injured or dies as a result of that accident.

HB 2553 by Hilderbran. Effective 9/1/09 and 9/1/11 This bill incorporates three different pieces of legislation into one. The bill includes provisions for recreational off-highway vehicles (ROVs), golf carts, and the streamlining of motor vehicle registration fees.

HB 2553 adds ROVs to the definition of "off-highway vehicle". Provides that an off-highway vehicle may not be operated without seat belts, if the vehicle is equipped with seat belts. Provisions in law regarding safety apparel, including the use of seat belts, is not applicable to a motor vehicle that: 1) has at least four wheels and is registered by TxDOT for use on a public highway, unless the vehicle is an all-terrain vehicle (ATV), 2) has four wheels and is equipped with bench or bucket seats and seat belts and includes a roll bar or roll cage construction to reduce the risk if injury to an occupant of the vehicle in case of the vehicle's rollover, or 3) is in the process of being loaded into or unloaded from a trailer or another vehicle used to transport the motor vehicle.

The definition of "motor vehicle" is changed to add ROVs. The bill also amends the definition of "all-terrain vehicle" by removing the reference to "bench, or bucket seats" and by adding "recreational off-highway vehicle". ROVs are defined as a motor vehicle that is equipped with a non-straddle seat for use of the rider; and a passenger, if the vehicle is designed by the manufacturer to transport a passenger. It must be designed to propel itself with four or more tires in contact with the ground, designed by the manufacturer for off-highway use by the operator only, and not designed by the manufacturer primarily for farming or lawn care. The bill allows a ROV to be operated on a public or private beach in the same manner as a golf cart. The operator must have a driver's license.

Provides that a golf cart that is operated at a speed of no more than 25 miles per hour (mph) is required to display a slow-moving vehicle emblem when it is operated on a public highway. The bill provides that TxDOT cannot register a golf cart for operation on a public highway regardless of whether any alteration has been made to the golf cart. However, the department may issue license plates for a golf cart owner who resides on real property that is owned or under the control of the United States Corps of Engineers and is required by that agency to register the owner ’s golf cart, and is in a county that borders another state and has a population of more than 110,000 but less than 111,000 (Grayson County). The bill allows a golf cart to be operated in 1) a master planned community, 2) on a public or private beach, or 3) on a public highway for which the posted speed limit is no more than 35 mph and is being operated during the daytime and no more than two miles from where the golf cart is usually parked and for transportation to or from a golf course. TxDOT or a county or municipality may prohibit the operation of a golf cart on a public highway if it is determined that there is a safety issue. A municipality may allow a golf cart to be operated on all or part of a public highway if it is in the corporate boundaries of the municipality and if the speed limit on the roadway is not more than 35 mph. Golf carts operated in accordance with this law must be equipped with headlamps, tail lamps, reflectors, a parking brake, and mirrors. A golf cart is allowed to cross an intersection, including a road or street that has a posted speed limit of more than 35 mph.

The remainder of the bill attempts to simplify and standardize motor vehicle registration fees. A major part of the simplification is a decrease of the more than 1,600 heavy vehicle fees to seven categories. The registration fee for all vehicles, except trailers and motorcycles, weighing 6,000 pounds or less is also standardized. Some fees are increased, but some are reduced. The bill sets the fee for the registration of a moped at $30. Regarding fees for vehicles that weigh 6,000 pounds or less, the fee for a registration year is set at $50.75 instead of having 3 categories which were priced at $40.50, $50.50, and $58.50 and that was based on the age of the vehicle.

For vehicles having a gross weight of more than 6,000 pounds, the fee for a registration year is set in 7 different categories (down from 1,600 categories) and is based on pounds. The fee categories are as follows:

6,001 - 10,000 pounds / $54.00

10,001 - 18,000 pounds / $110.00

18,001 - 25,999 pounds / $205.00 26,000 - 40,000 pounds / $340.00

40,001 - 54,999 pounds / $535.00

55,000 - 70000 pounds / $740.00

70,001 - 80,000 pounds / $840.00

The fees for a registration year for registration of a trailer, travel trailer, or semitrailer having a gross weight of 6,000 pounds or less is $45.00. If more than 6,000 pounds, it is calculated at the same rates as the 7 categories above. The fee for a motor bus also falls within the categories listed above.

The fee for a registration year for registration of a truck-tractor or commercial motor vehicle is calculated by gross weight. The fee for registration of a semitrailer is $15 if a permit under the Oversize/Overweight Vehicles provision in law has not been issued and $30 if such permit has been issued.

The bill allows the department to use the $1.00 fee collected for the automated registration and title system to provide for or enhance automated on-premise and off-premise registration and services related to the titling of vehicles.

The fee for a replacement registration insignia (sticker) is increased from $5 to $6 plus the $1.00 automated registration and title system fee.

The fee for replacement license plates is $6 plus the $1.00 automated registration and title system fee.

The department is not allowed to issue a replacement set of personalized license plates to the same person before the sixth anniversary of the date of issuance unless the applicant pays the $6.00 replacement fee, plus the $1.00 automated registration and title system fee.

The bill adds a category for Classic Travel Trailers and provides that the license plate must include the word "Classic". A person eligible for the license plates may instead use license plates that were issued by this state in the same year as the model year of the vehicle and are approved by the department if the plates are approved for the vehicle before January 1, 2011. There is no fee for issuance or approval of the license plate. The $8.00 fee for the initial issuance of license plates for cotton vehicles and forestry vehicles is removed. The $15 fee for the issuance of license plates for tow trucks is removed. The bill also removes the $2.00 fee for the initial issuance of license plates for vehicles carrying mobile amateur radio equipment and the $1 subsequent fee (Radio Operator license plates). The fee for issuance of golf cart license plates is reduced from $10 to $6.

The bill allows the department to charge a nonrefundable redesign fee for specialty license plates.

The bill repeals several provisions in the Transportation Code. These include:

Section 502.007 - Mopeds, Section 502.161(b) - Fee / registration year of a passenger car, municipal bus, or private bus that weighs more than 6,000 pounds is $25 plus 60 cents for each 100 pounds,

Section 502.170 - Additional Fee for Reflectorized License Plate,

Section 1705 (c) - The Additional Fee for Automated Registration and Title System only applies to a county in which the department's automated registration and title system has been implemented and in which 50,000 or more motor vehicles were registered during the preceding year,

Section 502.187 - Parade Vehicle Owned by Nonprofit Organizations,

Section 502.201(c) - The owner of a vehicle described by Subsection (b) shall return the license plates and registration receipt to the department for cancellation (Exempt License Plates),

Section 502.453 - [Effective January 1, 2009] Fees Required for Transfer of License Plate and Registration Insignia ($5),

Section 504.409(b) - The fee for issuance of the license plate is $4 (Volunteer Firefighter),

Section 504.5011 - Classic Travel Trailer.

It is important to note that this bill has two different effective dates. The sections of the bill pertaining to golf carts and ROVs go into effect on September 1, 2009, while the streamlined motor vehicle registration fees become effective on September 1, 2011.

HB 2556 by Solomons. Effective 9/1/09 This legislation relates to the rights and duties of the parties to a motor vehicle retail installment contract or a conditional delivery agreement. It defines "conditional delivery agreement" as a contract between a retail seller and prospective retail buyer under the terms of which the retail seller allows the prospective retail buyer the use and benefit of a motor vehicle for a specified term. Provides that a conditional delivery agreement may not exceed a term of 15 days. If a prospective retail buyer tenders to a retail seller a trade-in motor vehicle in connection with a conditional delivery agreement, the parties must agree on the value of the trade-in motor vehicle. The conditional delivery agreement must contain the agreed value of the trade-in motor vehicle, and the retail seller must use reasonable care to conserve the trade-in motor vehicle while the vehicle is in the retail seller ’s possession. If the parties to a conditional delivery agreement do not subsequently enter into a retail installment contract for the sale of the motor vehicle that is the subject of the conditional delivery agreement, the retail seller must return the trade-in vehicle to the prospective buyer with 7 days. It must be in the same condition as it was at the time of the execution of the agreement. Any down payment must also be returned. If the trade-in motor vehicle cannot be returned in the same condition as it was, the prospective retail buyer must be provided with a sum of money equal to the agreed value of the trade-in motor vehicle. If a prospective retail buyer returns a motor vehicle under a conditional delivery agreement at the request of the retail seller, the retail seller must return the trade-in vehicle at the same time that the motor vehicle under the conditional delivery agreement is returned by the prospective retail buyer.

HB 2654 by Oliveira. Effective 9/1/09 This legislation relates to the imposition of the motor vehicle sales tax on motor vehicles transferred as the result of a gift. The bill changes the definition of "sale" to include a transaction in which a motor vehicle is transferred to another person without payment of consideration and that does not qualify as a gift. This means that what used to be a “gift” (no payment of consideration), is now subject to taxation on presumptive value unless the gift is received by a close relative or through inheritance. The bill also requires notarization of the joint statement that the donor and beneficiary must submit when a vehicle is transferred by gift. The joint statement must describe the nature of the transaction and the relationship between the principal parties.

HB 3517 by Gattis. Effective 6/19/09

This legislation repeals a provision in statute which requires applicants for certificates of title to submit their social security numbers with their title applications. The repealed statute was originally passed for child support enforcement reasons, but according to the Office of the Attorney General, it has not been used since agencies' computers have been unable to "talk together".

SB 61 by Zaffirini. Effective 9/1/09

This bill requires the use of a child passenger safety seat for a child younger than 8 years of age, unless the child is taller than 4 feet nine inches tall. The bill would amend the existing fine structure to be $25 for a first offense, and not more than $250 for a second or subsequent offense.

The bill also creates a new fifteen cent court cost for violations of the child passenger safety violations in Transportation Code, Section 545.512. The additional revenue from this new fee may be appropriated to TxDOT to purchase child passenger safety seats for low-income families.

The new penalties would be assessed for violations occurring on or after June 1, 2010

SB 589 by Carona

Requirements for sunscreening devices on a motor vehicle

SB 1617 by Wentworth. Effective 9/1/09

This legislation relates to the titling and registration of certain motor vehicles. It requires the certificate of title for a motor vehicle to contain a notice sufficient to inform a purchaser that the vehicle has been repurchased or replaced. It provides that a seller who files a vehicle transfer notification with TxDOT has no liability after the transfer and that a copy of the form, filed with the department, is proof of the filing. The bill precludes registration denial on a vehicle if the vehicle was purchased and sold by a licensed motor vehicle dealer in regard to red light camera enforcement and failure to pay a traffic fine.

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