§ Establishes "zero tolerance" for juveniles driving while intoxicated. Defines an individual under the age of 21 with a blood alcohol content (BAC) of .00 percent or higher to be driving under the influence of alcohol. (Texas currently allows drivers under the age of 21 to drive a motor vehicle with a BAC of up to .07.)

§ Increases the penalty for those under the age of 17 for the first and second offense of driving while intoxicated from conduct indicating a need for supervision to delinquent conduct.

§ Increases the penalties for all alcohol-related offenses by a minor, including possession, attempt to acquire, and consumption of alcohol. The penalties include suspension of a minor's driver's license, increased fines, participation in an alcohol awareness class, mandatory community service, and possibly jail on a third offense.

§ Modifies current law for a minor between 15 and 17 years of age who operates a motor vehicle on a public road or highway, street or alley in a municipality, or public beach.

§ Allows a minor to be prosecuted for an accident involving:

§ personal injury or death;

§ damage to a vehicle; or

§ striking an unattended vehicle.

§ Makes it an offense for a person under 21 years of age to possess any document deceptively similar to a driver's license or identification certificate with the intent of representing that the person is 21 years of age or older.

§ Makes it a Class A misdemeanor to possess with the intent to sell, distribute, or deliver a forged or counterfeit driver's license, personal identification certificate, or any other instrument not printed, manufactured, sold, circulated, or issued by or under the direction of Texas law, another state, the United States, or a Canadian province.

§ Makes it a Class C misdemeanor possess with the intent to use, circulate, or pass a forged or counterfeit instrument that the person knows is not printed, manufactured, sold, circulated, or issued by or under the direction of Texas law, another state, the United States, or a Canadian province.

§ Makes it a third-degree felony to manufacture or produce with the intent to sell, distribute, or deliver a forged or counterfeit instrument that the person knows is not printed, manufactured, sold, circulated, or issued by or under the direction of Texas law, another state, the United States, or a Canadian province.

§ Strikes language providing that a person who is subpoenaed and testifies about an offense of distribution or manufacture of a counterfeit instrument cannot be prosecuted for the offense.

§ Expands the definition of "victim" to include any person that suffers a monetary loss, personal injury, or harm resulting from the delinquent conduct of a juvenile.

§ Requires the Texas Commission on Alcohol and Drug Abuse to regulate, coordinate, and provide training for alcohol awareness courses required to be attended by minors convicted of certain alcohol purchase, consumption, or possession provisions.

§ Allows the Department of Public Safety to disseminate to the public, information relating to a juvenile offender who has escaped from the custody of the Texas Youth Commission (TYC), including the juvenile offender's name or aliases, physical description, photograph, and the conduct or offense, which caused the offender to be committed to TYC.

§ Authorizes the court or the Texas Juvenile Probation Commission (commission) to require, as a condition of a juvenile's probation or release, that juvenile sex offenders attend psychological counseling sessions for sex offenders and submit to a polygraph examination to determine the juvenile's treatment progress, if the offending conduct was perpetrated against a child.

§ Authorizes the court or the commission to order the parent or guardian of the offending child to attend four sessions relating to sexual offense, family communication skills, sex offender treatment, victims' rights, parental supervision, and appropriate sexual behavior.

§ Requires the court to give a minimum of two years probation to a juvenile who commits certain sex offenses punishable as felonies.

§ Authorizes the court or the commission to extend the probation as necessary to allow the juvenile to complete the required counseling, except that the probation may not be extended past the juvenile's 18th birthday.

§ Requires the sex offender program treating the juvenile to report to the local juvenile probation department supervising the total number of counseling sessions attended by the child. Requires program representatives to provide the reason for the juvenile's termination or that the reason is unknown, if the juvenile terminates treatment prior to completion.

§ Prohibits the Department of Public Safety from issuing a license to a juvenile who has been reported by a court for failure to appear in court or pay a fine in connection with a misdemeanor, including a misdemeanor under a municipal ordinance.

§ Makes a number of clarifying and technical amendments to the Juvenile Justice Code:

§ Authorizes a prosecutor to refer a petition to a grand jury in which the petition was filed if the juvenile is accused of committing arson and if bodily injury or death is suffered by anyone as a result of the accused conduct;

§ Streamlines statutory warning requirements;

§ Authorizes the Texas Youth Commission (TYC) to accept offenders with mental illness and requires TYC to discharge offenders with mental disorders under certain circumstances;

§ Amends progressive sanctions guidelines;

§ Makes amendments related to the maintenance and release of information in youth records;

§ Establishes the Center for the Study and Prevention of Juvenile Crime and Delinquency at Prairie View A&M University; and

§ Sets forth requirements for the construction or operation of a correctional or rehabilitation facility within a certain distance of a residential zoning area.

§ Requires a report of alleged abuse or neglect to be made to a local law enforcement agency for investigation, if the abuse or neglect takes place in:

§ a public or private juvenile pre-adjudication secure detention facility, including hold-over facilities; or

§ a public or private juvenile post-adjudication secure correctional facility, except for a facility operated solely for children committed to the Texas Youth Commission,

§ Requires the local law enforcement agency to immediately notify the Texas Juvenile Probation Commission of any report the agency receives.

§ Provides for the continuation and functions of the Texas Juvenile Probation Commission (TJPC) until September 1, 2009.

§ Requires local juvenile probation departments to use the standard assessment tool developed by TJPC or a similar tool developed by a juvenile probation department and approved by the TJPC, for the initial assessment of children under the jurisdiction of probation departments.

§ Requires TJPC to adopt rules regarding information collection, reporting standards, performance measures, and case management standards for local juvenile probation departments.

§ Requires TJPC to monitor local probation departments for compliance with the standards and measures that TJPC adopts, and provide technical assistance to local probation departments to aid compliance.

§ Sets forth standards for a contract between TJPC and a county for local probation services.

§ Requires TJPC to establish a formal program to monitor contracts made by the commission.

§ Requires TJPC to identify areas in which federal Medicaid program benefits could be used in a manner that is cost-effective for children in the juvenile system, to encourage application for Medicaid benefits, to provide technical assistance to and monitor a county's application for and use of Medicaid.

§ Provides that the only entities, other than the state, authorized to operate a correctional facility to house out-of-state juvenile inmates in this state are a county or municipality and a private vendor operating certain correctional facilities.

§ Requires TJPC to develop rules, procedures, and minimum standards applicable to county or private correctional facilities housing out-of-state juvenile inmates.

§ Requires a contract to require the county, municipality, or private vendor to operate the facility in compliance with minimum standards adopted by TJPC.

§ Updates standard language developed by the Sunset Commission regarding qualifications, terms of appointment, and training for members of TJPC, and regarding program and service accessibility.

§ Requires the Texas Juvenile Probation Commission (TJPC) to set standards for and operate a registry of public and private juvenile pre-adjudication and post-adjudication secure facilities, except for those operated or certified by the Texas Youth Commission. Requires TJPC to annually inspect these facilities.

§ Gives the Alcoholic Beverage Commission statutory authority to use minors in conducting sting operations identifying retailers who sell alcoholic beverages to minors.

§ Provides that a minor does not commit an offense if the minor purchases or possesses an alcoholic beverage under the immediate supervision of a commissioned peace officer enforcing provisions of the Alcoholic Beverage Code.