78R8371 JD-D


By:  Krusee                                                       H.B. No. 3292

Substitute the following for H.B. No. 3292:                                   

By:  Harper-Brown                                             C.S.H.B. No. 3292


A BILL TO BE ENTITLED
AN ACT
relating to the marketing and sale of prestige and specialized license plates. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter F, Chapter 502, Transportation Code, is amended by adding Section 502.2515 to read as follows: Sec. 502.2515. CONTRACT WITH PRIVATE VENDOR. (a) The Texas Transportation Commission may authorize the department to enter into a contract with the private vendor whose proposal is most advantageous to the state as determined from competitive sealed proposals for the marketing and sale of: (1) personalized prestige license plates authorized by Section 502.251; or (2) other specialized license plates authorized by this subchapter. (b) Instead of the fees established by Section 502.251(c), if the commission authorizes the department to contract with a private vendor under Subsection (a)(1) for the marketing and sale of personalized prestige license plates, the commission by rule shall establish fees for the issuance or renewal of personalized prestige license plates that are marketed and sold by the private vendor. Fees must be reasonable and not less than the greater of: (1) the amounts necessary to allow the department to recover all costs to the department associated with the evaluation of the competitive sealed proposals received by the department and with the implementation and enforcement of the contract, including direct, indirect, and administrative costs; or (2) the amount established by Section 502.251(c). (c) If the commission authorizes the department to contract with a private vendor under Subsection (a)(2) for the marketing and sale of other specialized license plates authorized by this subchapter, including specialized license plates that may be personalized, the commission by rule shall establish the fees for the issuance or renewal of specialized license plates that are marketed and sold by the private vendor. Fees must be reasonable and not less than the amounts necessary to allow the department to recover all costs to the department associated with the evaluation of the competitive sealed proposals received by the department and with the implementation and enforcement of the contract, including direct, indirect, and administrative costs. A fee established under this subsection is in addition to: (1) the registration fee and any optional registration fee prescribed by this chapter for the vehicle for which the specialized license plates are issued; (2) any additional fee prescribed by this subchapter for the issuance of the specialized license plates for that vehicle; and (3) any additional fee prescribed by this subchapter for the issuance of personalized special license plates for that vehicle. (d) At any time, as necessary to comply with Subsection (b) or (c), the commission may increase or decrease the amount of a fee established under the applicable subsection. (e) A contract with a private vendor under Subsection (a)(1) is payable only from amounts derived from the collection of the fee established under Subsection (b). A contract with a private vendor under Subsection (a)(2) is payable only from amounts derived from the collection of the fee established under Subsection (c). (f) The department may create new design and color combinations for personalized prestige license plates that are marketed or sold by a private vendor under a contract entered into under Subsection (a)(1). Each approved license plate design and color combination remains the property of the department. (g) The department may create new design and color combinations for specialized license plates, including specialized license plates that may be personalized, that are marketed or sold by a private vendor under a contract entered into under Subsection (a)(2). Each approved license plate design and color combination remains the property of the department. This subsection does not authorize: (1) the department to approve a design or color combination for a specialized license plate that is inconsistent with the design or color combination specified for the license plate by the section of this subchapter that authorizes the issuance of the specialized license plate; or (2) the private vendor to market or sell a specialized license plate with a design or color combination that is inconsistent with the design or color combination specified by that section. (h) In connection with a license plate that is marketed or sold by a private vendor under contract, the department may cancel a license plate or require the discontinuation of a license plate design or color combination at any time if the department determines that the cancellation or discontinuation is in the best interest of this state or the motoring public. (i) A contract entered into by the department with a private vendor under this section: (1) must comply with any law generally applicable to a contract for services entered into by the department; (2) must require the private vendor to render at least quarterly to the department periodic accounts that accurately detail all material transactions, including information reasonably required by the department to support fees that are collected by the vendor, and to regularly remit all money payable to the department under the contract; and (3) may allow or require the private vendor to establish an electronic infrastructure coordinated and compatible with the department's registration system, by which motor vehicle owners may electronically send and receive applications, other documents, or required payments, and that, when secure access is necessary, can be electronically validated by the department. (j) From amounts received by the department, the department shall deposit to the credit of the state highway fund an amount sufficient to enable the department to recover its administrative costs for all license plates issued under this section, including any payments to the vendor under Subsection (a), and any other amounts allocated to the state highway fund by another law. To the extent that disposition of other amounts received from the vendor are governed by another law, those amounts shall be deposited in accordance with the other law, and for each type of license plate, the amount charged for the license plate may not be less than the amount in effect on January 1, 2003. Any additional amount received from the vendor shall be deposited to the credit of the general revenue fund. (k) The commission may authorize the department to pay a licensing fee for the use of a trademark in connection with the marketing and sale of a license plate under this section. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.