HBA-MPM H.B. 3071 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3071 By: Chisum Public Safety 8/3/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislation, it was unclear whether existing law provided for the suspension or revocation of a certificate of a vehicle inspector if the inspector committed a crime unrelated to inspections. In addition, existing law did not address a situation in which a family member of a person with a suspended or revoked certificate seeks to continue that person's family business. Existing law was also unclear as to which entities or persons involved in a business are subject to the suspension or revocation of a certificate. House Bill 3071 strengthens law governing the suspension and revocation of certificates of an inspector or inspection station owner and certain family members of that person and clarifies which entities and individuals are subject to a certificate suspension or revocation. The bill also authorizes a representative of the Department of Public Safety to conduct an inspection, investigation, or audit of an inspection station to ensure that the station is in compliance with state law. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Department of Public Safety in SECTION 4 (Section 548.409, Transportation Code) of this bill. ANALYSIS House Bill 3071 amends the Transportation Code to authorize a member, employee, or agent of the Department of Public Safety (DPS representative) to enter an inspection station during normal business hours to conduct an investigation, inspection, or audit to determine whether the station or inspector is in compliance with vehicle inspection laws, DPS rules relating to the compulsory inspection of motor vehicles, or the Clean Air Act. A DPS representative who enters an inspection station to conduct an investigation, inspection, or audit is required to notify the manager or person in charge of the station of the representative's presence and present the manager or person with proper identifying credentials. The bill entitles a DPS representative to have access to emissions testing equipment, inspection records, and any required inspection station certificate or inspector certificate. The bill provides that the DPS representative must observe the inspection station's rules relating to safety, security, and fire protection. These provisions do not prohibit DPS from conducting an undercover investigation or covert audit of an inspection station. The bill prohibits an immediate family member of a person whose certificate has been suspended or revoked from being granted a certificate if the location of the family member's business is the same as that of the person whose certificate is suspended or revoked unless the family member proves that the person with the suspended or revoked certificate has no involvement in the business. The bill specifies that provisions authorizing DPS to deny a person's application for a certificate, to revoke or suspend a certificate of a person, inspection station, or inspector, to place on probation a person who holds a suspended certificate, or to reprimand a person who holds a certificate apply to each member of a partnership association, each director or officer of a corporation, and a shareholder who receives compensation from the day-to-day operation of the corporation in the form of a salary. H.B. 3071 prohibits DPS from suspending, revoking, or denying all certificates of a person who holds more than one inspection station certificate based on the suspension, revocation, or denial of one of the person's station certificates without proof of culpability related to a prior action. DPS is required to develop by September 1, 2002, a penalty schedule consisting of warnings, re-education, suspensions, and revocations based on the severity and frequency of offenses committed under provisions or DPS rules relating to the compulsory inspection of motor vehicles and the Clean Air Act. H.B. 3071 provides that a person who is dissatisfied with the final decision of the public safety director regarding the denial, suspension, or revocation of a certificate may appeal the decision by filing a petition as provided by existing law governing contested cases within state agencies rather than filing the petition in district court in the county where the person lives. The bill specifies that judicial review of the final decision of the public safety director is under the substantial evidence rule. The bill requires DPS to adopt rules regarding the efficient handling and investigation of complaints by citizens, applicants, inspectors, and inspection stations against a DPS representative who may investigate the compliance of the station or station inspector. The bill specifies that the rules must provide for a fair, expeditious, and equitable investigation and resolution to complaints received by DPS. EFFECTIVE DATE September 1, 2001.