PART 3. MOTOR VEHICLE CRIME PREVENTION AUTHORITY
CHAPTER 57. MOTOR VEHICLE CRIME PREVENTION AUTHORITY
INTRODUCTION. The Motor Vehicle Crime Prevention Authority (MVCPA) proposes an amendment to 43 Texas Administrative Code (TAC) §57.36, concerning level of funding for grant projects. This amendment is necessary to implement Occupations Code §1006.151 and §1006.154 by providing financial support to law enforcement agencies for economic motor vehicle theft and fraud-related motor vehicle crime enforcement teams, and in lessening the financial burden on local city and county governments that may be unable to meet the current cash match requirements under 43 TAC §57.36.
EXPLANATION.
Transportation Code §1006.151(a) and §1006.154 provide the MVCPA with authority to issue grants in its own name by providing funding to law enforcement agencies for economic motor vehicle theft and fraud-related motor vehicle crime enforcement teams; to law enforcement agencies, local prosecutors, judicial agencies, and neighborhood, community, business and non-profit organizations for the programs designed to reduce the incidence of economic motor vehicle theft and fraud-related motor vehicle crime; for conducting educational programs designed to inform motor vehicle owners of methods of preventing motor vehicle burglary or theft and fraud-related motor vehicle crime; for equipment, for experimental purposes, to assist motor vehicle owners in preventing motor vehicle burglary or theft; and funding to establish a uniform program to prevent stolen motor vehicles from entering Mexico. Under current 43 TAC §57.36, a grantee must contribute a cash match of 20% of the total MVCPA award for each year of funding to be eligible for MVCPA grant funds.
During the 88th Texas Legislature, Regular Session, Senate Bill (SB) 224 passed and was signed into law. The focus of SB 224 was the detection and prevention of catalytic converter theft in Texas. SB 224 appropriated funding for the coordinated regulatory and law enforcement activities intended to detect and prevent catalytic converter theft, and provided that the funding may be appropriated to the MVCPA for the activities described in SB 224.
The MVCPA issued a Request for Applications (RFA) for SB 224 FY24 funding to solicit applications from law enforcement agencies and taskforces to apply for SB 224 FY24 grant funding. Prior to posting the SB 224 RFA, law enforcement agencies and taskforces informed the MVCPA that due to the timing of the SB 224 FY24 RFA posting and the current FY24 budgetary cycles in their cities and counties, the law enforcement agencies and taskforces would be unable to provide the 20% cash match required under 43 TAC §57.36. Many of the same law enforcement agencies and MVCPA taskforces had already provided a 20% cash match for MVCPA FY24 non-SB 224 grants. Lacking the ability to provide an additional 20% cash match for SB 224 FY24 grant funding, the law enforcement agencies and taskforces would not be able to be eligible for or secure SB 224 FY24 grant funding based on the rule as currently written. Without the ability of law enforcement agencies and taskforces to secure such funding, the legislative intent behind SB 224 would be impeded and unfulfilled. SB 224 recognized that law enforcement agencies and taskforces are vital to the success of detecting and preventing catalytic converter theft in Texas. The current rule has the effect of preventing law enforcement agencies and taskforces from serving in this vital role due to budgetary constraints.
An amendment to 43 TAC §57.36 is proposed to provide the MVCPA board with authority to address unforeseen grantee budgetary shortfalls by providing the board with greater flexibility in adjusting the cash match percentage required of law enforcement grantees seeking MVCPA grant funding. The proposed amendment would allow the MVCPA board to exercise its discretion in setting the percentage of cash match in each grant funding cycle by considering grantee budgetary factors. By providing the MVCPA board with discretion to set the percentage of cash match or waive the cash match requirement for a given fiscal year, the board can ensure that law enforcement agencies with decreased financial resources will have a realistic opportunity to apply for and secure MVCPA grant funding in furtherance of the MVCPA statutory mandates.
FISCAL NOTE AND LOCAL EMPLOYMENT IMPACT STATEMENT. Glenna Bowman, Chief Financial Officer, Texas Department of Motor Vehicles has determined that for each year of the first five years the new section will be in effect, there will be a positive fiscal impact to state or local governments as a result of the enforcement or administration of the proposal. William Diggs, Director of the Motor Vehicle Crime Prevention Authority (MVCPA) Division, has determined that there will be no potential measurable effect on local employment or the local economy.
PUBLIC BENEFIT AND COST NOTE. Mr. Diggs has also determined that, for each year of the first five years the new section is in effect, the public benefits anticipated as a result of the proposal will include increased funding for the city and county governments of MVCPA taskforces to combat catalytic converter theft in their communities.
Anticipated Costs to Comply with The Proposal. Mr. Diggs anticipates there will be no significant fiscal costs for grantees to comply with this rule.
ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS. As required by the Government Code, §2006.002, the department has determined that the proposed amendment will not have an adverse economic effect on small businesses, micro-businesses, and rural communities because the new section does not require small businesses, micro businesses, or rural communities to comply. Therefore, the department is not required to prepare a regulatory flexibility analysis under Government Code, §2006.002.
TAKINGS IMPACT ASSESSMENT. The department has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking or require a takings impact assessment under the Government Code, §2007.043.
GOVERNMENT GROWTH IMPACT STATEMENT. The department has determined that each year of the first five years the proposed new section is in effect, no government program would be created or eliminated. Implementation of the proposed amendments would not require the creation of new employee positions. The proposed amendment does not create a new regulation, or expand, or repeal an existing regulation. The proposed amendment may decrease the amount of cash match funding that an MVCPA grantee is required to provide in order to be eligible for MVCPA grant funding. Lastly, the proposed new section does not affect the number of individuals subject to the rule's applicability and will not affect this state's economy.
REQUEST FOR PUBLIC COMMENT.
If you want to comment on the proposal, submit your written comments by 5:00 p.m. CDT on May 20, 2024. A request for a public hearing must be sent separately from your written comments. Send written comments or hearing requests by email to rules@txdmv.gov or by mail to Office of General Counsel, Texas Department of Motor Vehicles, 4000 Jackson Avenue, Austin, Texas 78731. If a hearing is held, the department will consider written comments and public testimony presented at the hearing.
STATUTORY AUTHORITY. The MVCPA proposes an amendment to 43 TAC §57.36 under Transportation Code §1006.101. Transportation Code §1006.101 authorizes the MVCPA to adopt rules that are necessary appropriate to implement the powers and the duties of the authority.
CROSS REFERENCE TO STATUTE. Art. 4413(37) §6.
§57.36.Level of Funding for Grant Projects.
For each grant, [A grantee must contribute
a cash match of 20% of] the [total] MVCPA will
determine whether to require grantees to contribute a cash match to
be eligible [award,] for [each year of]
funding. [, in order to be eligible for MVCPA funds.] If required, the cash match will be a percentage of the total MVCPA
award, for each year of funding, not to exceed 20%. The cash match
requirement for each grant will be stated in the grant application.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on April 1, 2024.
TRD-202401358
David Richards
General Counsel
Motor Vehicle Crime Prevention Authority
Earliest possible date of adoption: May 19, 2024
For further information, please call: (512) 465-1423