Adopted Rules Title 43

TITLE 43. TRANSPORTATION

PART 3. MOTOR VEHICLE CRIME PREVENTION AUTHORITY

CHAPTER 57. MOTOR VEHICLE CRIME PREVENTION AUTHORITY

INTRODUCTION. The Motor Vehicle Crime Prevention Authority (Authority) adopts amendments to 57 Texas Administrative Code (TAC) §57.48 concerning Motor Vehicle Years of Insurance Calculations. The authority adopts §57.48 without changes to the proposed text as published in the September 8, 2023, issue of the Texas Register (48 TexReg 5017). The rules will not be republished.

REASONED JUSTIFICATION. The amended sections are necessary to implement Senate Bill (SB) 224 enacted during the 88th Legislature, Regular Session (2023). An amendment to Transportation Code §1006.153 increased the fee that insurers pay to the Authority.

Amendments to §57.48(a)(1) and §57.48(a)(4) increase the statutory fee from $4 payable on each motor vehicle for which the insurer provides insurance coverage during the calendar year regardless of the number of policy renewals to $5 payable on each motor vehicle for which the insurer provides insurance coverage during the calendar year regardless of the number of policy renewals to implement SB 224. SB 224 requires the additional $1 of the fee to be deposited into the general revenue fund to be used for certain activities intended to detect and prevent catalytic converter theft.

SUMMARY OF COMMENTS.

The Authority received one comment from State Senator Carol Alvarado, the author of SB 224. Sen. Alvarado offered her appreciation to the Authority for engaging in rulemaking to further implement SB 224.

Response: The Authority agrees with the commenter and appreciates Sen. Alvarado's support in enacting this legislation. No changes were made as a result of this comment.

STATUTORY AUTHORITY. The department adopts amendments to §57.48(a)(1) and §57.48(a)(4) under Transportation Code §1006.101. Transportation Code §1006.101 authorizes the MVCPA to adopt rules that are necessary and appropriate to implement the powers and duties of the authority.

CROSS REFERENCE TO STATUTE. Art. 4413(37) §6.

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 December 21, 2023.

TRD-202304943

David Richards

General Counsel

Motor Vehicle Crime Prevention Authority

Effective date: January 10, 2024

Proposal publication date: September 8, 2023

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

43 TAC §57.52

INTRODUCTION. The Motor Vehicle Crime Prevention Authority (Authority) adopts new 43 Texas Administrative Code (TAC) §57.52 concerning a penalty for late payment of fee or filing of report; appeal. The authority adopts §57.52 without changes to the proposed text as published in the September 8, 2023, issue of the Texas Register (48 Tex Reg 5018). The rules will not be republished.

REASONED JUSTIFICATION. New §57.52 implements House Bill (HB) 3514 enacted during the 87th Legislature, Regular Session (2021). Transportation Code §1006.153, Fee Imposed on Insurers, provides "motor vehicle years of insurance" means the total number of years or portions of years during which a motor vehicle is covered by insurance. Insurers are required to pay the authority a fee equal to five dollars multiplied by the total number of years of insurance policies delivered, issued for delivery, or renewed by the insurer. Transportation Code §1006.153(b), requires insurers to pay the fee not later than: (1) March 1 of each year for a policy delivered, issued, or renewed from July 1 to December 31 of the previous calendar year; and (2) August 1 of each year for a policy delivered, issued, or renewed from January 1 through June 30 of that year.

New §57.52 provides that a penalty shall be imposed on an insurer for the delinquent payment of the required fee or the delinquent filing of the report of a fee that is required by law. The penalty shall be assessed in the same manner as the assessment of a penalty for a delinquent tax payment or a report under Tax Code §111.061(a). Interest accrues in the manner described in Tax Code §111.060 on any fee paid after the due date required under Transportation Code §1006.153(b). HB 3514 provides the authority with the ability to audit or contract for the audit of fees paid under Transportation Code §1006.153(b-2) and requires the authority to establish procedures by rule that provide a right of appeal to an insurer assessed a penalty or interest under this section. The final decision regarding an insurer's appeal is decided by a majority vote of the authority. The appeal of the assessment of a penalty or interest is not a contested case under Government Code, Chapter 2001.