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A BILL TO BE ENTITLED
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AN ACT
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relating to the marketing, hosting, and sale of specialty and |
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personalized license plates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 504.003(c) and (c-1), Transportation |
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Code, are amended to read as follows: |
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(c) If a souvenir license plate issued before November 19 |
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[September 1], 2009, is personalized, the fee for the plate is |
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$40. Of the fee: |
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(1) $20 shall be deposited to the credit of the state |
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highway fund; |
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(2) $10 shall be deposited to the credit of the |
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designated account if the souvenir license plate is a replica of a |
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specialty license plate issued under Subchapter G or I for which the |
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fee is deposited to a designated account other than the state |
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highway fund; and |
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(3) the remainder shall be deposited to the credit of |
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the general revenue fund. |
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(c-1) The fee for a souvenir license plate issued on or |
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after November 19 [September 1], 2009, is the amount established |
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under Section 504.851(c). |
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SECTION 2. Subchapter B, Chapter 504, Transportation Code, |
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is amended by adding Section 504.101 to read as follows: |
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Sec. 504.101. PERSONALIZED LICENSE PLATES. The department |
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shall issue personalized license plates, including those sold by |
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the private vendor under a contract with the department as provided |
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by Section 504.851. |
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SECTION 3. Section 504.6011, Transportation Code, is |
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amended by amending Subsection (a) and adding Subsection (d) to |
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read as follows: |
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(a) The sponsor of a specialty license plate [authorized to
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be issued under this subchapter before September 1, 2009,] may |
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contract with the private vendor authorized under Subchapter J for |
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the marketing and sale of the specialty license plate. |
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(d) A sponsor of a specialty license plate authorized to be |
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issued under this subchapter before November 19, 2009, may |
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reestablish its specialty license plate under Sections 504.601 and |
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504.702 and be credited its previous deposit with the department if |
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a contract entered into by the sponsor under Subsection (a) |
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terminates. |
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SECTION 4. Section 504.614, Transportation Code, is amended |
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by adding Subsection (b-1) to read as follows: |
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(b-1) A public entity that receives money under Subsection |
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(b) may contract with the private vendor under Section 504.6011 to |
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distribute the entity's portion of the money in a manner other than |
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that described by Subsection (b). |
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SECTION 5. Sections 504.801(d) and (d-1), Transportation |
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Code, are amended to read as follows: |
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(d) The fee for issuance of license plates created under |
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this subchapter before November 19 [September 1], 2009, is $30 |
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unless the department sets a higher fee. This subsection does not |
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apply to a specialty license plate marketed and sold by a private |
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vendor at the request of the specialty license plate sponsor. |
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(d-1) The fee for issuance of license plates created under |
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this subchapter on or after November 19 [September 1], 2009, is the |
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amount established under Section 504.851. |
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SECTION 6. The heading to Section 504.802, Transportation |
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Code, is amended to read as follows: |
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Sec. 504.802. MARKETING AND SALE BY PRIVATE VENDOR OF |
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SPECIALTY LICENSE PLATES [CREATED BEFORE SEPTEMBER 1, 2009]. |
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SECTION 7. Section 504.802, Transportation Code, is amended |
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by amending Subsections (a) and (c) and adding Subsection (d) to |
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read as follows: |
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(a) A sponsor of a specialty license plate created under |
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this subchapter [before September 1, 2009,] may contract with the |
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private vendor authorized under Subchapter J for the marketing and |
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sale of the specialty license plate. |
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(c) Notwithstanding any other law, from each fee received |
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from the issuance of a specialty license plate marketed and sold by |
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the private vendor under this section, the department shall: |
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(1) deduct the administrative costs described by |
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Section 504.801(e)(1); |
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(2) deposit the portion of the fee for the sale of the |
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plate that the state would ordinarily receive under the contract |
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described by Section 504.851(a) to the credit of: |
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(A) the specialty license plate fund, if the |
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sponsor nominated a state agency to receive the funds; [or] |
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(B) the general revenue fund, if the sponsor did |
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not nominate a state agency to receive the funds or if there is no |
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sponsor; or |
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(C) for a license plate issued under Section |
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504.614, the public entity that provides or provided funds for the |
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professional sports team's facility; and |
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(3) pay to the private vendor the remainder of the fee. |
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(d) A sponsor of a specialty license plate may reestablish |
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its specialty license plate under Sections 504.601 and 504.702 and |
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be credited its previous deposit with the department if a contract |
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entered into by the sponsor under Subsection (a) terminates. |
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SECTION 8. Section 504.851, Transportation Code, is amended |
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by amending Subsections (a-2), (c), (e), (f), and (h), and adding |
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Subsections (a-3) and (m) to read as follows: |
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(a-2) Specialty license plates authorized for marketing and |
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sale under Subsection (a) may be personalized and must include: |
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(1) specialty license plates created under |
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Subchapters G and I on or after November 19 [September 1], 2009; and |
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(2) at the request of the specialty license plate |
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sponsor, an existing specialty license plate created under |
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Subchapters G and I before November 19 [September 1], 2009. |
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(a-3) The department may contract with the private vendor |
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for the vendor to: |
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(1) host all or some of the specialty license plates on |
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the vendor's website; |
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(2) process the purchase of specialty license plates |
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hosted on the vendor's website and pay any additional transaction |
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cost; and |
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(3) share in the personalization fee for the license |
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plates hosted on the vendor's website. |
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(c) The board by rule shall establish the fees for the |
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issuance or renewal of souvenir license plates, specialty license |
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plates, or souvenir or specialty license plates that are |
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personalized that are marketed and sold by the private vendor or |
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hosted on the private vendor's website. The state's portion of the |
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personalization fee may not be less than $40 for each year issued. |
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Other fees [Fees] must be reasonable and not less than the amounts |
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necessary to allow the department to recover all reasonable costs |
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to the department associated with the evaluation of the competitive |
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sealed proposals received by the department and with the |
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implementation and enforcement of the contract, including direct, |
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indirect, and administrative costs. A fee established under this |
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subsection is in addition to: |
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(1) the registration fee and any optional registration |
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fee prescribed by this chapter for the vehicle for which specialty |
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license plates are issued; |
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(2) any additional fee prescribed by this subchapter |
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for the issuance of specialty license plates for that vehicle; and |
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(3) any additional fee prescribed by this subchapter |
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for the issuance of personalized license plates for that vehicle. |
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(e) The portion of a contract with a private vendor |
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regarding the marketing and sale of personalized license plates is |
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payable only from amounts derived from the collection of the fee |
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established under Subsection (b). The portion of a contract with a |
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private vendor regarding the marketing, hosting, and sale of |
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souvenir license plates, specialty license plates, or souvenir or |
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specialty license plates that are personalized under Section |
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504.102 is payable only from amounts derived from the collection of |
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the fee established under Subsection (c). |
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(f) The department may approve new design and color |
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combinations for personalized or specialty license plates that are |
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marketed and sold by a private vendor under a contract entered into |
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with the private vendor. Each approved license plate design and |
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color combination remains the property of the department. |
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(h) Subject to the limitations provided by Subsections (g) |
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and (g-1), the department may disapprove a design, cancel a license |
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plate, or require the discontinuation of a license plate design or |
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color combination that is marketed, hosted, or [and] sold by a |
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private vendor under contract at any time if the department |
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determines that the disapproval, cancellation, or discontinuation |
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is in the best interest of this state or the motoring public. |
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(m) If the private vendor ceases operation: |
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(1) the program may be operated temporarily by the |
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department under new agreements with the license plate sponsors |
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until another vendor is selected and begins operation; and |
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(2) the private vendor's share of the revenue is |
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deposited to the credit of the general revenue fund. |
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SECTION 9. The heading to Section 504.853, Transportation |
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Code, is amended to read as follows: |
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Sec. 504.853. SPECIALTY AND PERSONALIZED LICENSE PLATES |
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ISSUED BEFORE NOVEMBER 19 [SEPTEMBER 1], 2009. |
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SECTION 10. Sections 504.853(a), (b), (c), and (e), |
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Transportation Code, are amended to read as follows: |
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(a) A specialty or personalized license plate issued before |
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November 19 [September 1], 2009, may be issued for a subsequent |
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registration period only if the applicant submits an application |
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and pays the required fee for the applicable registration period. A |
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person who is issued a personalized license plate has first |
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priority on that license plate for each subsequent registration |
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period for which the person submits a new application for that |
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plate. |
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(b) Unless the board by rule adopts a higher fee or the |
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license plate is not renewed annually, the [The] fee for issuance of |
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a [personalized] license plate issued before November 19 [September
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1], 2009, is: |
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(1) the fee provided for in Section 504.601 for a |
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specialty license plate; and |
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(2) $40 for a personalized license plate[, unless the
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director adopts by rule a higher fee]. |
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(c) A person who is issued a specialty or personalized |
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license plate by the department before November 19 [September 1], |
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2009, may: |
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(1) submit an application for the plate under |
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Subsection (a) and pay the required fee for each subsequent |
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registration period under Subsection (b); or |
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(2) purchase through the private vendor a license to |
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display the alphanumeric pattern on a license plate for any term |
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allowed by law. |
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(e) Of each fee collected by the department under Subsection |
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(b)(2) [this section]: |
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(1) $1.25 shall be used by the department to defray the |
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cost of administering this section; and |
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(2) the remainder shall be deposited to the credit of |
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the general revenue fund. |
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SECTION 11. Sections 504.854(a) and (b), Transportation |
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Code, are amended to read as follows: |
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(a) The board by rule [private vendor] may provide for the |
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private vendor to: |
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(1) sell at auction a license to display a unique |
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alphanumeric pattern on a license plate for a period set by board |
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rule; |
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(2) reserve an unissued alphanumeric pattern from the |
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department for purposes of auctioning a license to display the |
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pattern for a period set by board rule; and |
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(3) purchase from a customer an unexpired license to |
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display an alphanumeric pattern for purposes of auction by the |
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vendor. |
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(b) A [Only a] license to display an alphanumeric pattern |
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purchased under this section [or a license to display an
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alphanumeric pattern sold by the private vendor under Section
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504.853] may be transferred to another person without payment of |
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the fee provided by Section 504.855. [The transferee is entitled to
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the same rights and privileges as the transferor.] |
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SECTION 12. Subchapter J, Chapter 504, Transportation Code, |
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is amended by adding Section 504.855 to read as follows: |
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Sec. 504.855. TRANSFERABILITY OF CERTAIN PATTERNS. The |
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board by rule may: |
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(1) authorize a person who purchases a license to |
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display an alphanumeric pattern for a period of five years or more |
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to transfer the license; and |
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(2) establish a transfer fee to be distributed in |
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accordance with the contract with the private vendor. |
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SECTION 13. The following provisions of the Transportation |
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Code are repealed: |
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(1) Section 504.851(k); and |
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(2) Section 504.854(c). |
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SECTION 14. This Act takes effect September 1, 2011. |