HBA-NIK C.S.H.B. 2461 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2461 By: Alexander Transportation 4/6/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, the Texas Department of Transportation (department) produces over 50 specially designed license plates. Such license plates have traditionally been seen as a fundraising tool for charitable organizations, colleges, and universities. However, most specialty license plates have not covered the cost to the department for the production of the plates. C.S.H.B. 2461 requires the discontinuance of certain license plates if they do not meet minimum sales figures or unless a $15,000 deposit is made to the department. This bill also decreases the annual fee for a "Keep Texas Beautiful" license plate. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter F, Chapter 502, Transportation Code, by adding Sections 502.2525 and 502.2526, as follows: Sec. 502.2525. DISCONTINUANCE OF CERTAIN SPECIALIZED LICENSE PLATES. (a) Provides that this section applies only to specialized license plates authorized by the enumerated sections. (b) Authorizes the Texas Department of Transportation (department), except as provided by Subsections (d) and (e), on or after September 1, 2004, to continue to issue license plates to which this section applies only if before that date at least 3,500 sets of the specified specialized license plates have been issued or presold, at least $15,000 has been received by the department from the issuance of specified license plates, or $15,000 has been deposited with the department for the continued issuance of those license plates. (c) Provides that, if before September 1, 2004, one of the conditions described by Subsection (b) is not met for a type of license plate to which this section applies, the section of this subchapter that authorizes the issuance of that type of license plate expires on that date. (d) Authorizes the department to continue to issue license plates, on or after September 1, 2004, under Section 502.270 (Collegiate License Plates) for a particular institution of higher education or private college or university only if before that date the specified sales or financial requirements are met, or under Section 502.2703 (Professional Sports Team License Plates) for a particular professional sports team only if before that date specified sales or financial requirements are met. (e) Provides that, if before September 1, 2004, the department has not issued any license plates under Section 502.2703, that section expires on that date. (f) Requires money deposited with the department under specified subsection (b)(3), (d)(1)(C), or (d)(2)(C) to be returned by the department to the person who made the deposit only after the requisite number of license plates under those subsections are issued or presold. Sec. 502.2526. SPECIALIZED LICENSE PLATES AUTHORIZED AFTER JANUARY 1, 1999. (a) Provides that this section applies only to specialized license plates that are authorized to be issued by a law that takes effect on or after January 1, 1999. (b) Authorizes the department to manufacture the specialized license plates only if a request for manufacture of the license plates is filed with the department. Provides that the request must adhere to enumerated provisions. (c) Requires that money deposited with the department under Subsection (b) to be returned to the person who made the deposit only if 3,500 sets of the applicable license plates are issued or presold. (d) Provides that if a request is not filed with the department before the date specified by Subsection (b), the law that authorizes the issuance of the specialized license plates expires on that date. SECTION 2. Amends Section 502.2731, Transportation Code, to decrease the annual fee a person pays to $25, rather than $50, for a "Keep Texas Beautiful" license plate. Authorizes $20, rather than $45, of each fee collected under this section to be used by the department only for the purposes of supporting the department's litter prevention and community beautification programs. SECTION 3. Emergency clause. Effective date: 90 days after adjournment. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2461 modifies the original SECTION 1 by adding Section 502.2526 (Specialized License Plates Authorized After January 1, 1999). Provides that this section applies only to specialized license plates that are authorized to be issued by a law that takes effect on or after January 1, 1999. Authorizes the department to manufacture the specialized license plates only if a request for manufacture of the license plates is filed with. Provides that request must adhere to enumerated provisions. Requires money deposited with the department to be returned to the person who made the deposit only if 3,500 sets of the applicable license plates are issued or presold. Provides that the law that authorizes the issuance of the specialized license plates expires if a request for license plates is not filed by a certain date. C.S.H.B. 2461 modifies the original by creating a new SECTION 2 (Sections 502.2731 (c) and (e), Transportation Code) to modify the fee rates for license plates. C.S.H.B. 2461 modifies the original by redesignating the emergency clause in SECTION 2 to SECTION 3.