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.