2005S0451-1 03/04/05
By: Phillips 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), and (c) and (e) through (j) and
adding Subsections (a-1) through (a-4) and (j) 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; and [or]
(2) if the private vendor agrees, other specialized
license plates authorized by this subchapter.
(a-1) In the contract under this section, the department may
not:
(A) impose on the private vendor a requirement
for a security or other deposit or a minimum sales volume prior to
the manufacture of a specialized license plate; or
(B) unreasonably disapprove or limit any aspect
of the private vendor's marketing and sales plan or unreasonably
interfere with the selection, assignment, or management by the
private vendor of its employees, agents, or subcontractors.
(a-2) In the contract under this section, the private vendor
may agree, but the department may not require, that the private
vendor will undertake the marketing and sale of souvenir license
plates, specialty license plates, or souvenir or specialty license
plates personalized under Section 504.102. If the private vendor
contracts to market and sell such license plates, the initial term
of the contract shall be for at least five years from the contract's
effective date, and the contract shall contain, at the option of
either the department or the private vendor, a second term, which
shall have a length at least equal to that of the contract's initial
term. If the private vendor contracts to market and sell such
license plates and revenues from the sale are intended to benefit a
sponsoring agency or organization, the sponsoring agency or
organization must approve the terms of the contract applicable to
the agency or organization before execution of the contract.
(a-3) Notwithstanding Subsection (a-2), the private vendor
may not market or sell souvenir license plates, specialty license
plates, or souvenir or specialty license plates personalized under
Section 504.102 that compete for sales with another specialty
license plate issued under this chapter unless the department and
the sponsoring agency or organization of the other specialty
license plate agree that the private vendor may so compete.
(a-4) Notwithstanding other provisions of this chapter, the
commission by rule shall establish the fees for the issuance or
renewal of souvenir license plates, specialty license plates, or
souvenir or specialty license plates that are personalized under
Section 504.102 that are marketed and sold by the private vendor
under a contract entered into under this section.
(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 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 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 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 license plates for that vehicle.
(e) That portion of the [A] contract with the [a] private
vendor relating to 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). That portion of the [A] contract with the [a] private vendor
relating to the marketing and sale of other specialized license
plates [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 and [or] sold by the [a] private vendor under the [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 create new design and color
combinations for specialized license plates authorized by this
chapter, including specialized license plates that may be
personalized, that are marketed and [or] sold by the [a] private
vendor under the [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 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 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; or
(3) the department to:
(A) publish a proposed design or color
combination for a specialized 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
(B) restrict the background color, color
combinations, or color alphanumeric license plate numbers of a
specialized license plate except as necessary for law enforcement
purposes as determined by the Department of Public Safety.
(h) In connection with a license plate that is marketed and
[or] sold by the [a] private vendor under the contract entered into
under this section, 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 the [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 infrastucture 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) The department shall certify to the comptroller its
estimate, together 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 the contract
entered into under this section, including direct, indirect, and
administrative costs for the issuance or renewal of personalized
license plates or specialized license plates that are marketed and
sold by the private vendor.
SECTION 2. In enacting this Act, it is the intent of the
legislature that the Texas Department of Transportation
aggressively pursue the implementation of a continuing program for
the marketing and sale to the public of personalized license plates
and other specialized license plates through the contracted
services of a private vendor. It is further the intent of the
legislature that, in developing the rules, procedures, and
contractual requirements necessary to implement and maintain the
marketing and sales program described in this Act, the department
shall maximize the efficiency of the program, the opportunities for
timely marketing and sales of a wide variety of personalized and
specialized license plates to satisfy public interest and demand,
and revenues to the state.
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 on the 91st day after the last day of the
legislative session.