By: Wentworth  S.B. No. 1616
         (In the Senate - Filed March 10, 2009; March 17, 2009, read
  first time and referred to Committee on Transportation and Homeland
  Security; April 20, 2009, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 8, Nays 0;
  April 20, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1616 By:  Wentworth
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the fees for certain license plates.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 504.003, Transportation Code, is amended
  by amending Subsection (c) and adding Subsection (c-1) to read as
  follows:
         (c)  If a [the] souvenir license plate issued before
  September 1, 2009, is personalized, the fee for the plate is
  $40.  Of the fee:
               (1)  $20 shall be deposited to the credit of the state
  highway fund;
               (2)  $10 shall be deposited to the credit of the
  designated account if the souvenir license plate is a replica of a
  specialty license plate issued under Subchapter G or I for which the
  fee is deposited to a designated account other than the state
  highway fund; and
               (3)  the remainder shall be deposited to the credit of
  the general revenue fund.
         (c-1)  The fee for a souvenir license plate issued on or
  after September 1, 2009, is the amount established under Section
  504.851(c).
         SECTION 2.  Section 504.102, Transportation Code, is amended
  to read as follows:
         Sec. 504.102.  PERSONALIZATION OF [OTHER] SPECIALTY LICENSE
  PLATE [PLATES]. Unless expressly prohibited by this chapter or
  department rule, any specialty license plate issued under this
  chapter may be personalized. If a [another] specialty license
  plate is personalized, the fee for personalization of the specialty
  license plate [established by Section 504.101(c)] shall be added to
  the fee for issuance of that specialty license plate.
         SECTION 3.  Section 504.601, Transportation Code, is amended
  to read as follows:
         Sec. 504.601.  GENERAL PROVISIONS APPLICABLE TO [ALL]
  SPECIALTY LICENSE PLATES FOR GENERAL DISTRIBUTION. (a)  Unless
  expressly provided by this subchapter or department rule:
               (1)  the fee for issuance of a license plate under this
  subchapter is $30; and
               (2)  of each fee received under this subchapter, the
  department shall use $8 to defray its administrative costs in
  complying with this subchapter.
         (b)  This section does not apply to a specialty license plate
  marketed and sold by a private vendor at the request of the
  specialty license plate sponsor under Section 504.6011.
         SECTION 4.  Subchapter G, Chapter 504, Transportation Code,
  is amended by adding Section 504.6011 to read as follows:
         Sec. 504.6011.  GENERAL PROVISIONS APPLICABLE TO SPECIALTY
  LICENSE PLATES FOR GENERAL DISTRIBUTION SOLD THROUGH PRIVATE
  VENDOR.  (a)  The sponsor of a specialty license plate authorized
  to be issued under this subchapter before September 1, 2009, may
  contract with the private vendor authorized under Subchapter J for
  the marketing and sale of the specialty license plate.
         (b)  The fee for issuance of a specialty license plate
  described by Subsection (a) is the amount established under Section
  504.851.
         (c)  Notwithstanding any other law, from each fee received
  for the issuance of a specialty license plate described by
  Subsection (a), the department shall:
               (1)  deduct the administrative costs described by
  Section 504.601(a)(2);
               (2)  deposit to the credit of the account designated by
  the law authorizing the specialty license plate the portion of the
  fee for the sale of the plate that the state would ordinarily
  receive under the contract described by Section 504.851(a); and
               (3)  pay to the private vendor the remainder of the fee.
         SECTION 5.  Section 504.801, Transportation Code, is amended
  by amending Subsections (d), (e), and (f) and adding Subsection
  (d-1) to read as follows:
         (d)  The fee for issuance of license plates created
  [authorized] under this subchapter before September 1, 2009, is $30
  unless the department sets a higher fee. This subsection does not
  apply to a specialty license plate marketed and sold by a private
  vendor at the request of the specialty license plate sponsor.
         (d-1)  The fee for issuance of license plates created under
  this subchapter on or after September 1, 2009, is the amount
  established under Section 504.851.
         (e)  For each fee collected for a license plate issued by the
  department under this section:
               (1)  $8 shall be used to reimburse the department for
  its administrative costs; and
               (2)  the remainder shall be deposited to the credit of:
                     (A)  the specialty license plate fund, which is 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
  subchapter [section].
         SECTION 6.  Subchapter I, Chapter 504, Transportation Code,
  is amended by adding Section 504.802 to read as follows:
         Sec. 504.802.  MARKETING AND SALE BY PRIVATE VENDOR OF
  SPECIALTY LICENSE PLATES CREATED BEFORE SEPTEMBER 1, 2009.  (a)  A
  sponsor of a specialty license plate created under this subchapter
  before September 1, 2009, may contract with the private vendor
  authorized under Subchapter J for the marketing and sale of the
  specialty license plate.
         (b)  The fee for issuance of a specialty license plate
  described by Subsection (a) is the amount established under Section
  504.851(c).
         (c)  Notwithstanding any other law, from each fee received
  from the issuance of a specialty license plate marketed and sold by
  the private vendor under this section, the department shall:
               (1)  deduct the administrative costs described by
  Section 504.801(e)(1);
               (2)  deposit the portion of the fee for the sale of the
  plate that the state would ordinarily receive under the contract
  described by Section 504.851(a) to the credit of:
                     (A)  the specialty license plate 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; and
               (3)  pay to the private vendor the remainder of the fee.
         SECTION 7.  Section 504.851, Transportation Code, is amended
  by amending Subsections (a), (b), (c), (d), and (j) and adding
  Subsections (a-1), (a-2), and (c-1) to read as follows:
         (a)  The department shall 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 license plates [authorized by
  Section 504.101]; or
               (2)  with the agreement of the private vendor, other
  specialty license plates authorized by this chapter [subchapter].
         (a-1)  The department may not issue specialty, personalized,
  or souvenir license plates with background colors other than white,
  unless the plates are marketed and sold by the private vendor.
         (a-2)  Specialty license plates authorized for marketing and
  sale under Subsection (a) must include:
               (1)  specialty license plates created under
  Subchapters G and I on or after September 1, 2009; and
               (2)  at the request of the specialty license plate
  sponsor, an existing specialty license plate created under
  Subchapters G and I before September 1, 2009.
         (b)  The director [Instead of the fees established by Section
  504.101(c), the commission] by rule shall establish fees for the
  issuance or renewal of personalized 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 504.853(b)
  [504.101(c)].
         (c)  The director [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 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
  license plates are issued;
               (2)  any additional fee prescribed by this subchapter
  for the issuance of specialty license plates for that vehicle; and
               (3)  any additional fee prescribed by this subchapter
  for the issuance of personalized license plates for that vehicle.
         (c-1)  Subsections (b) and (c) do not apply to the sale at
  auction of a license to display an alphanumeric pattern.
         (d)  At any time as necessary to comply with Subsection (b)
  or (c), the director [commission] may increase [or decrease] the
  amount of a fee established under the applicable subsection.
         (j)  From amounts received by the department under the
  contract described by Subsection (a), the department shall deposit
  to the credit of the state highway fund an amount sufficient to
  enable the department to recover its administrative costs for all
  license plates issued under this section, [including] any payments
  to the vendor under the contract [Subsection (a)], and any other
  amounts allocated by law to the state highway fund [by another law].
  To the extent that the disposition of other amounts received by
  [from] the department is [vendor are] governed by another law,
  those amounts shall be deposited in accordance with the other law.
  The fee[, and] for each type of license plate issued under this
  chapter [the amount charged for the license plate] may not be less
  than the fee [amount] in effect on January 1, 2003. Any additional
  amount received by [from] the department under the contract
  [vendor] shall be deposited to the credit of the state highway
  [general revenue] fund.
         SECTION 8.  Subchapter J, Chapter 504, Transportation Code,
  is amended by adding Sections 504.853 and 504.854 to read as
  follows:
         Sec. 504.853.  PERSONALIZED LICENSE PLATES ISSUED BEFORE
  SEPTEMBER 1, 2009. (a)  A personalized license plate issued before
  September 1, 2009, may be issued for a subsequent registration
  period only if the applicant submits an application and pays the
  required fee for the applicable registration period. A person who
  is issued a personalized license plate has first priority on that
  license plate for each subsequent registration period for which the
  person submits a new application for that plate.
         (b)  The fee for issuance of a personalized license plate
  issued before September 1, 2009, is $40, unless the director adopts
  by rule a higher fee.
         (c)  A person who is issued a personalized license plate by
  the department before September 1, 2009, may:
               (1)  submit an application for the plate under
  Subsection (a) and pay the required fee for each subsequent
  registration period under Subsection (b); or
               (2)  purchase through the private vendor a license to
  display the alphanumeric pattern on a license plate for any term
  allowed by law.
         (d)  The department may not issue a replacement set of
  personalized license plates to the same person before the sixth
  anniversary of the date of issuance unless the applicant for
  issuance of replacement plates pays an additional fee of $30.
         (e)  Of each fee collected by the department under this
  section:
               (1)  $1.25 shall be used to defray the cost of
  administering this section; and
               (2)  the remainder shall be deposited to the credit of
  the general revenue fund.
         Sec. 504.854.  AUCTION.  (a)  The private vendor may sell at
  auction a license to display a unique alphanumeric pattern on a
  license plate.
         (b)  Only a license to display an alphanumeric pattern
  purchased under this section or a license to display an
  alphanumeric pattern sold by the private vendor under Section
  504.853 may be transferred to another person.  The transferee is
  entitled to the same rights and privileges as the transferor.
         (c)  The transferee shall file a form prescribed by the
  department to notify the department of the transfer.
         SECTION 9.  The following provisions of the Transportation
  Code are repealed:
               (1)  Section 504.101; and
               (2)  Subsection (m), Section 504.851.
         SECTION 10.  The changes in law made by this Act do not
  require the rebidding of a contract that is in effect on the
  effective date of this Act.
         SECTION 11.  This Act takes effect September 1, 2009.
 
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