78R3839 JD-D
By: Carona S.B. No. 425
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) Notwithstanding 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 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.
(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) Money received by the department from a private vendor
under this section shall be deposited to the credit of the state
highway 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.