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79R9672 JRJ-F
By: Phillips H.B. No. 2894
Substitute the following for H.B. No. 2894:
By: Casteel C.S.H.B. No. 2894
A BILL TO BE ENTITLED
AN ACT
relating to the marketing and sale of certain license plates by a
private vendor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 504.851, Transportation Code, is amended
by amending Subsections (a), (b), (c), (e), (f), (g), and (h) and
adding Subsections (g-1) and (k) to read as follows:
(a) The [commission may authorize the] department shall
[to] enter into a contract with the private vendor whose proposal is
most advantageous to the state, as determined from competitive
sealed proposals that satisfy the requirements of this section, for
the marketing and sale of:
(1) personalized [prestige] license plates authorized
by Section 504.101; or
(2) with the agreement of the private vendor, other
specialty [specialized] license plates authorized by this
subchapter.
(b) Instead of the fees established by Section 504.101(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 reasonable 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 504.101(c).
(c) The [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 souvenir license plates, specialty
[specialized] license plates, or souvenir or specialty license
plates that are personalized 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 reasonable
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 specialty
[the specialized] license plates are issued;
(2) any additional fee prescribed by this subchapter
for the issuance of specialty [the specialized] license plates for
that vehicle; and
(3) any additional fee prescribed by this subchapter
for the issuance of personalized license plates for that vehicle.
(e) The portion of a [A] contract with a private vendor
regarding the marketing and sale of personalized license plates
[under Subsection (a)(1)] is payable only from amounts derived from
the collection of the fee established under Subsection (b). The
portion of a [A] contract with a private vendor regarding the
marketing and sale of souvenir license plates, specialty license
plates, or souvenir or specialty license plates that are
personalized under Section 504.102 [under Subsection (a)(2)] is
payable only from amounts derived from the collection of the fee
established under Subsection (c).
(f) The department may approve [create] new design and color
combinations for personalized [prestige] license plates that are
marketed and [or] sold by a private vendor under a contract entered
into with the private vendor [under Subsection (a)(1)]. Each
approved license plate design and color combination remains the
property of the department.
(g) The department may approve [create] new design and color
combinations for specialty [specialized] license plates authorized
by this chapter, including specialty [specialized] license plates
that may be personalized, that are marketed and [or] sold by a
private vendor under a contract entered into with the private
vendor [under Subsection (a)(2)]. Each approved license plate
design and color combination remains the property of the
department. Except as otherwise provided by this chapter, this
[This] subsection does not authorize:
(1) the department to approve a design or color
combination for a specialty [specialized] license plate that is
inconsistent with the design or color combination specified for the
license plate by the section of this chapter [subchapter] that
authorizes the issuance of the specialty [specialized] license
plate; or
(2) the private vendor to market and [or] sell a
specialty [specialized] license plate with a design or color
combination that is inconsistent with the design or color
combination specified by that section.
(g-1) The department may not:
(1) publish a proposed design or color combination for
a specialty license plate for public comment in the Texas Register
or otherwise, except on the department's website for a period not to
exceed 10 days; or
(2) restrict the background color, color
combinations, or color alphanumeric license plate numbers of a
specialty license plate, except as determined by the Department of
Public Safety as necessary for law enforcement purposes.
(h) Subject to the limitations provided by Subsections (g)
and (g-1) [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 that is marketed and sold by a private
vendor under contract at any time if the department determines that
the cancellation or discontinuation is in the best interest of this
state or the motoring public.
(k) The department shall certify to the comptroller the
estimate, with a detailed explanation of the basis on which the
estimate is calculated, of all reasonable costs to the department
associated with the evaluation of competitive sealed proposals
received by the department under this section and associated with
the implementation and enforcement of a contract entered into under
this section, including direct, indirect, and administrative costs
for the issuance or renewal of personalized license plates or
specialty license plates.
SECTION 2. Subchapter J, Chapter 504, Transportation Code,
is amended by adding Section 504.852 to read as follows:
Sec. 504.852. CONTRACT LIMITATIONS. (a) In a contract
under Section 504.851, the department may not:
(1) require a private vendor to meet a minimum sales
volume or pay a security or other deposit in an amount greater than
$100,000 to secure the performance of the vendor;
(2) unreasonably disapprove or limit any aspect of a
private vendor's marketing and sales plan;
(3) unreasonably interfere with the selection,
assignment, or management by the private vendor of the private
vendor's employees, agents, or subcontractors; or
(4) require a private vendor to market and sell
souvenir license plates, specialty license plates, or souvenir or
specialty license plates personalized under Section 504.102.
(b) If a private vendor contracts to market and sell
souvenir license plates, specialty license plates, or souvenir or
specialty license plates personalized under Section 504.102, the
initial term of the contract shall be for at least five years from
the effective date of the contract. The contract shall contain, at
the option of either the department or the private vendor, a second
term at least equal in length to the initial term of the contract.
(c) Notwithstanding Subsection (b), a private vendor may
not market and sell souvenir license plates, specialty license
plates, or souvenir or specialty license plates personalized under
Section 504.102 that compete directly for sales with another
specialty license plate issued under this chapter unless the
department and the sponsoring agency or organization of the other
license plate approve.
SECTION 3. 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, 2005.