TITLE 43. TRANSPORTATION

PART 3. MOTOR VEHICLE CRIME PREVENTION AUTHORITY

CHAPTER 57. MOTOR VEHICLE CRIME PREVENTION AUTHORITY

43 TAC §§57.9, 57.14, 57.27, 57.29, 57.48, 57.50 - 57.52

INTRODUCTION. The Motor Vehicle Crime Prevention Authority (authority) adopts amendments to 43 Texas Administrative Code (TAC) Chapter 57, §§57.9, 57.14; 57.27, 57.29, 57.48, 57.50 - 57.52. The authority adopts §§57.9. 57.14, 57.27, 57.29, 57.48, 57.50 - 57.52 without changes to the proposed text as published in the November 8, 2024, issue of the Texas Register (49 TexReg 8834). The rules will not be republished.

The adopted revisions in Chapter 57 are necessary to bring the rules into alignment with statute; remove language that is redundant with statute; to clarify existing requirements; to modernize language; to improve readability through the use of consistent terminology; to clarify or delete unused, archaic, or inaccurate definitions, terms, and references or other language; to clarify existing requirements; and more specifically describe the authority's methods and procedures.

REASONED JUSTIFICATION. The authority is conducting a review of its rules in Chapter 57 in compliance with Government Code, §2001.039. Notice of the authority's Intention to Readopt Chapter 57 is published in this issue of the Texas Register. As a part of the rule review, the authority is adopting necessary amendments as detailed in the following paragraphs.

An adopted amendment adds new §57.9(f) to clarify that grantees who are in violation of the MVCPA's non-supplanting requirement may be required by the Board to return supplanted funds to the MVCPA. An adopted amendment to §57.14(b)(4) clarifies that a project eligible for grant funding to address a reduction in the sale of stolen auto parts can include projects designed to reduce the sale of stolen catalytic converters, in furtherance of Senate Bill (SB) 224, 89th Legislature, Regular Session (2023). Adopted new §57.14(b)(6) adds "preventing stolen motor vehicles from entering Mexico" as a project goal for which the MVCPA can provide grant funding, to align the rule with Transportation Code, Chapter 1006.

Adopted amendments to §57.27(a)(1), (a)(2), (c), (d) and (f) clarify language and improve readability without changing the meaning of the rule. Adopted new §57.27(g) clarifies that MVCPA grantees do not have a statutory right to a contested case proceeding to determine whether a deficient condition described in §57.27(a) exists or has been resolved.

Adopted amendments to §57.29(d) and (e) modernize language and improve readability.

An adopted amendment to §57.48(b) updates the titles of two Comptroller of Public Accounts forms used by insurers to pay the MVCPA fee with correct language and clarifies that the forms may be obtained in electronic format on the Comptroller's website.

An adopted amendment to §57.50 updates the section title to reflect the official agency name of the Texas Department of Insurance. Adopted amendments to the body of the rule align the section with Transportation Code, Chapter 1006.

Adopted amendments to §57.51(a), (b), and (c) add "designee," "MVCPA," and "MVCPA board" in several places to clarify the initial submission procedures for insurers requesting refund determinations. The adopted amendments improve readability through the use of consistent terminology.

Adopted amendments to §57.52 update the section title to clarify that both penalties and interest may be assessed for a late payment of the fee. Additionally, the adopted amendments add the word "late" to the section title to clarify that a violation of the section can also occur for the late filing of the report of the fee and result in a penalty being assessed against an insurer.

An adopted amendment to §57.52(a) and (a)(1) remove language concerning the late filing of the report of the fee from subsection (a) and place it in new subsection (b) for clarity and ease of reference. The adopted amendments for subsection (a) clarifies that an insurer shall be assessed a penalty for the late payment of the fee in accordance with Tax Code, §111.061(a). Adopted new subsection (b) clarifies that a penalty of $50 will be assessed against an insurer for the late filing of the report of the fee. The $50 penalty for the late filing of a report follows the Texas Comptroller's Office current practice of charging a $50 fee involving a late filing of a report by a taxpayer.

An adopted amendment to new §57.52(c)(1) increases the time period in which an insurer may submit a prescribed form to the MVCPA director to appeal the assessment of penalties and/or interest against an insurer from thirty days to sixty days. Currently, billing statements are mailed out up to two weeks after the balance shows and some insurers have complained that they did not receive notification until after the thirty-day period has expired. The adopted amendment allows insurers sufficient additional time to review the MVCPA director's decision and consider whether to appeal.

Additional non-substantive amendments are adopted throughout Chapter 57 to correct punctuation, grammar, and capitalization.

SUMMARY OF COMMENTS.

No comments on the proposed amendments were received.

STATUTORY AUTHORITY. The amendments are adopted under Transportation Code, §1006.101, which requires the authority to adopt rules to implement the authority's powers and duties.

CROSS REFERENCE TO STATUTE. The adopted amendments would implement Transportation Code §1006.101, and §1006.153.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 24, 2025.

TRD-202500247

David Richards

General Counsel

Motor Vehicle Crime Prevention Authority

Effective date: February 13, 2025

Proposal publication date: November 8, 2024

For further information, please call: (512) 465-1423