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78R9069 T

By:  Wentworth                                                    S.B. No. 1704



A BILL TO BE ENTITLED

AN ACT

relating to the issuance of specially designed license plates by 
the Texas Department of Transportation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter F, Chapter 502, Transportation Code, 
is amended by adding Section 502.2524 to read as follows:
	Sec. 502.2524.  CREATION OF NEW SPECIALTY PLATES BY THE 
DEPARTMENT.  (a)  The department may create new specialty license 
plates on its own initiative or on receipt of an application from a 
potential sponsor.  A new specialty plate created under this 
section must meet the requirements of Section 502.2526 unless it is 
created by the department on its own initiative.  The department may 
allow a new specialty license plate to be personalized.
	(b)  Any person may sponsor a new specialty plate by 
submitting an application.  An application may nominate a state 
agency to receive funds generated by the new specialty plate.  An 
application may also identify uses to which the funds generated by 
the new specialty plate should be appropriated.
	(c)  The department shall design each new specialty plate in 
consultation with the sponsor, if any, that applied for creation of 
that specialty plate.  The plate design shall be the exclusive 
property of the department.  The department may refuse to create a 
new specialty plate if the design might be offensive to any members 
of the public, if the nominated state agency does not consent to 
receipt of the funds generated by the plate, if the uses identified 
for the funds might violate any statutory or constitutional 
provision, or for any other reason established by the commission.  
At the request of the sponsor, distribution of the plate may be 
limited by the department.  If distribution of a specialty plate is 
limited to particular persons or vehicles, the application must 
include evidence satisfactory to the department that the applicant 
and the applicant's vehicle are eligible.
	(d)  The department shall issue specialty plates created 
under this section to a person who:
		(1)  applies to the county assessor-collector of the 
county in which the person resides on a form provided by the 
department; and
		(2)  pays an annual fee of $30 in addition to the fee 
prescribed by Section 502.161 and, if personalized prestige license 
plates are issued, in addition to the fee prescribed by Section 
502.251.
	(e)  The first $15,000 collected as fees for a new specialty 
plate shall be deposited to the credit of the state highway fund to 
reimburse the department for its initial costs in beginning 
production of the new specialty plate.  After the first $15,000, for 
each fee collected:
		(1)  an amount determined by the commission shall be 
deposited to the credit of the state highway fund to reimburse the 
department for its incremental costs in producing each specialty 
plate; and
		(2)  the remainder shall be deposited to the credit of:                
			(A)  the specialty license plate fund, an account 
in the general revenue fund, if the sponsor nominated a state agency 
to receive the funds; or
			(B)  the state highway fund if the sponsor did not 
nominate a state agency to receive the funds or if there is no 
sponsor.
	(f)  Subchapter D, Chapter 316, Government Code, and Section 
403.095, Government Code, do not apply to fees collected under this 
section.
	(g)  The department may report to the legislature at any time 
concerning implementation of this section.  The report may include 
recommendation concerning the appropriations, by amount, state 
agency, and uses, that would be necessary to implement the requests 
of sponsors.
	(h)  If a sponsor did not name a state agency to receive the 
funds or if there is no sponsor, the department may license a 
trademark for inclusion within the design of the plates and may pay 
a fee for the trademark license.
	(i)  If the specialty plates issued under this section are 
lost, stolen, or mutilated, the owner of the vehicle for which the 
plates were issued may obtain replacement plates from the 
department by paying the replacement fee prescribed by Section 
502.184(a)(2).  If the owner of a vehicle registered under this 
section disposes of the vehicle during the registration year, the 
owner shall return the specialty plates to the department.
	(i)  The commission shall adopt rules and the department 
shall issue forms to implement this section.
	SECTION 2.  This Act takes effect January 1, 2004.