SRC-MSY S.B. 425 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 425
78R3839 JD-DBy: Carona
Infrastructure Development and Security
2/20/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Texas Department of Transportation (TxDOT) is required by
law to create and issue personalized prestige license plates and certain
personalized specialized plates, as well as create procedures to issue
such license plates.  As proposed, S.B. 425 allows TxDOT to contract out
the marketing and sale of such license plates to a private vendor, and
allows TxDOT to recover the associated administrative costs. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 1 (Section 502.2515(b) and (c), Transportation Code)
of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 502F, Transportation Code, by adding Section
502.2515, as follows: 

Sec.  502.2515.  CONTRACT WITH PRIVATE VENDOR.  (a)  Authorizes the Texas
Transportation Commission (commission) to authorize the Department of
Transportation (TxDOT) to enter into a contract with the private vendor
whose proposal is most advantageous to the state for the marketing and
sale of personalized prestige license plates authorized by Section 502.251
or other specialized license plates authorized by this subchapter. 

(b)  Requires the commission to establish, by rule, fees for the issuance
or renewal of personalized prestige license plates marketed and sold by a
private vendor under Subsection (a)(1), if the commission authorizes TxDOT
to enter into contract with such a vendor.  Provides that fees must be
reasonable and not less than necessary for TxDOT to recover all the costs
associated with the evaluation of the private vendor proposal bid, as well
as the costs associated with the implementation and enforcement of the
contract. 

(c)  Requires the commission to establish, by rule, fees for the issuance
or renewal of personalized prestige license plates marketed and sold by a
private vendor under Subsection (a)(2), if the commission authorizes TxDOT
to enter into contract with such a vendor.  Provides that fees must be
reasonable and not less than necessary for TxDOT to recover all the costs
associated with the evaluation of the private vendor proposal bid, as well
as the costs associated with the implementation and enforcement of the
contract.  Provides that a fee established under this subsection is in
addition to certain other fees for issuance of licence and registration. 

(d)  Authorizes the commission to increase or decrease the amount of a fee
established under Subsection (b) or (c) at any time, as necessary for
compliance with those subsections. 

(e)  Provides that a contract with a private vendor under Subsection
(a)(1) is payable  only from funds derived from the fee established under
Subsection (b), and that a contract with a private vendor under Subsection
(a)(2) is payable only from funds derived from the fee established under
Subsection (c). 

(f)  Authorizes TxDOT to create new design and color combinations for
personalized prestige license plates marketed or sold by a private vendor
under Subsection (a)(1). Provides that each approved license plate design
and color combination remains the property of TxDOT. 

(g)  Authorizes TxDOT to create new design and color combinations for
specialized license plates, including personalized specialized license
plates, marketed or sold by a private vendor under Subsection (a)(2).
Provides that each approved license plate design and color combination
remains the property of TxDOT.  Provides that this subsection does not
authorize TxDOT or the private vendor to approve, design, market, or sell
a license plate inconsistent with certain specifications. 

(h)  Authorizes TxDOT to cancel or require the discontinuation of the
design or color combination of a license plate sold by a private vendor
under contract at any time if TxDOT determines that the cancellation or
discontinuation is in the best interests of this state or the motoring
public. 

(i)  Requires a contract entered into by TxDOT with a private vendor under
this section to be entered into in a certain manner, require certain
informiton from the vendor, and allow or require the vendor to establish
an electronic infrastructure coordinated and compatible with TxDOT's
registration system. 

(j)  Requires money received by TxDOT from a private vendor under this
section to be deposited to the credit of the state highway fund. 

(k)  Authorizes the commission to authorize TxDOT to pay a licenseing fee
for the use of a trademark in connection with the marketing and sale of a
license plate under this section. 

SECTION 2.  Effective date: upon passage or September 1, 2003.