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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the issuance of digital license plates; authorizing a  | 
      
      
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        fee. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Chapter 504, Transportation Code, is amended by  | 
      
      
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        adding Subchapter B-1 to read as follows: | 
      
      
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        SUBCHAPTER B-1.  DIGITAL LICENSE PLATES | 
      
      
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               Sec. 504.151.  DEFINITIONS.  In this subchapter: | 
      
      
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                     (1)  "Digital license plate" means an electronic  | 
      
      
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        display that is designed to: | 
      
      
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                           (A)  display the information required to be  | 
      
      
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        included on a physical license plate; and | 
      
      
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                           (B)  be placed on the rear of a vehicle registered  | 
      
      
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        under Chapter 502 in lieu of a physical license plate issued under  | 
      
      
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        this chapter. | 
      
      
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                     (2)  "Digital license plate provider" means a person  | 
      
      
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        engaged in the business of providing digital license plate hardware  | 
      
      
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        and services to vehicle owners, including the sale or lease of and  | 
      
      
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        issuance of digital license plates. | 
      
      
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               Sec. 504.152.  APPLICABILITY OF OTHER LAW.  Except as  | 
      
      
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        otherwise provided by this subchapter or a rule adopted under this  | 
      
      
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        subchapter, a digital license plate issued under this subchapter is  | 
      
      
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        subject to the laws of this state applicable to a physical license  | 
      
      
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        plate. | 
      
      
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               Sec. 504.153.  RULES.  The board shall adopt rules as  | 
      
      
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        necessary to implement and administer this subchapter. | 
      
      
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               Sec. 504.154.  DIGITAL LICENSE PLATES AUTHORIZED.  (a)  The  | 
      
      
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        board by rule shall allow a vehicle registered under Chapter 502 to  | 
      
      
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        be equipped with a digital license plate that is placed on the rear  | 
      
      
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        of the vehicle in lieu of a physical license plate issued under this  | 
      
      
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        chapter.  The rule must require the owner of a vehicle issued a  | 
      
      
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        digital license plate to obtain a physical license plate to be  | 
      
      
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        placed on the front of the vehicle unless the vehicle is of a class  | 
      
      
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        of vehicles that is not required to display two license plates, as  | 
      
      
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        provided by other law. | 
      
      
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               (b)  The department may contract with digital license plate  | 
      
      
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        providers for the issuance of digital license plates, including any  | 
      
      
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        services related to the issuance of digital license plates. | 
      
      
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               (c)  Notwithstanding any other law, a rule adopted under this  | 
      
      
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        subchapter may: | 
      
      
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                     (1)  authorize the display of the vehicle's  | 
      
      
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        registration insignia on a digital license plate issued for the  | 
      
      
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        vehicle in lieu of attaching the registration insignia to the  | 
      
      
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        inside of the vehicle's windshield as required by Section 502.059; | 
      
      
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                     (2)  establish a fee in an amount necessary to cover any  | 
      
      
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        administrative costs incurred that relate to the issuance of a  | 
      
      
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        digital license plate and exceed the administrative costs incurred  | 
      
      
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        for the issuance of a physical license plate; or | 
      
      
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                     (3)  prohibit a digital license plate provider from  | 
      
      
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        contracting with the department under Subchapter J. | 
      
      
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               Sec. 504.155.  DIGITAL LICENSE PLATES REQUIREMENTS AND  | 
      
      
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        PERMISSIVE FUNCTIONALITY.  (a)  The board by rule shall set the  | 
      
      
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        specifications and requirements for digital license plates,  | 
      
      
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        including requirements for the placement of digital license plates.   | 
      
      
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        The design of and information displayed on a digital license plate  | 
      
      
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        must be approved by the department. | 
      
      
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               (b)  A digital license plate issued under this subchapter  | 
      
      
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        must: | 
      
      
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                     (1)  meet the specifications and requirements adopted  | 
      
      
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        under Subsection (a); | 
      
      
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                     (2)  include the information required to be included on  | 
      
      
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        a physical license plate and legibly display that information at  | 
      
      
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        all times and in all light conditions, provided that the license  | 
      
      
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        plate may display the information in a smaller typeface when the  | 
      
      
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        vehicle is parked; and | 
      
      
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                     (3)  have wireless connectivity capability. | 
      
      
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               (c)  The department shall consult with law enforcement  | 
      
      
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        agencies when considering whether to approve the design of a  | 
      
      
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        digital license plate. | 
      
      
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               (d)  A rule adopted under this subchapter may: | 
      
      
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                     (1)  authorize the use of a digital license plate for  | 
      
      
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        electronic toll collection or to display a parking permit; or | 
      
      
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                     (2)  establish procedures for displaying on a digital  | 
      
      
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        license plate: | 
      
      
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                           (A)  an emergency alert or other public safety  | 
      
      
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        alert issued by a governmental entity, including an alert  | 
      
      
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        authorized under Subchapter L, M, or P, Chapter 411, Government  | 
      
      
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        Code; | 
      
      
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                           (B)  vehicle manufacturer safety recall notices; | 
      
      
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                           (C)  static logo displays, including unique  | 
      
      
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        displays for fleet vehicles; or | 
      
      
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                           (D)  advertising approved by the department. | 
      
      
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               Sec. 504.156.  DIGITAL LICENSE PLATE PROVIDER POWERS AND  | 
      
      
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        DUTIES.  A digital license plate provider with whom the department  | 
      
      
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        contracts under Section 504.154: | 
      
      
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                     (1)  shall maintain an inventory of the digital license  | 
      
      
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        plates issued by the provider in this state; | 
      
      
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                     (2)  shall make available a digital version of each  | 
      
      
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        specialty license plate authorized by this chapter, other than  | 
      
      
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        personalized license plates authorized for marketing and sale under  | 
      
      
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        Subchapter J, provided that: | 
      
      
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                           (A)  each issuance of a specialty license plate  | 
      
      
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        with restricted distribution, including a license plate authorized  | 
      
      
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        under Subchapter C, D, E, or F, must be approved by the department;  | 
      
      
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        and | 
      
      
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                           (B)  the provider shall remit to the department in  | 
      
      
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        the manner prescribed by the department all money: | 
      
      
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                                 (i)  payable to the department; or | 
      
      
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                                 (ii)  required to be used or deposited in the  | 
      
      
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        manner prescribed by the law establishing the license plate; | 
      
      
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                     (3)  may contract with the private vendor under  | 
      
      
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        Subchapter J to make available a digital version of a personalized  | 
      
      
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        license plate authorized for marketing and sale under that  | 
      
      
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        subchapter, provided that the contract shall conform with any  | 
      
      
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        applicable requirements of Subchapter J and the terms of the  | 
      
      
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        private vendor's contract with the department; | 
      
      
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                     (4)  shall, if a digital license plate displays a  | 
      
      
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        registration insignia as authorized by a rule adopted under Section  | 
      
      
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        504.154(c)(1), promptly update the display of the registration  | 
      
      
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        insignia to reflect the current registration period for the vehicle  | 
      
      
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        and, on request of the department, suspend the display of the  | 
      
      
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        registration insignia or indicate on the license plate that the  | 
      
      
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        registration insignia for the vehicle is expired; | 
      
      
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                     (5)  may provide any service related to the issuance of  | 
      
      
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        a digital license plate that is authorized by board rule, including  | 
      
      
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        the sale, lease, and installation of and customer service for a  | 
      
      
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        digital license plate; and | 
      
      
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                     (6)  may charge a fee, payable in installments, for the  | 
      
      
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        issuance of a digital license plate or any additional services  | 
      
      
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        provided by the provider for that license plate. | 
      
      
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               Sec. 504.157.  DEFENSE TO PROSECUTION OF CERTAIN OFFENSES.   | 
      
      
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        It is a defense to prosecution of an offense involving the operation  | 
      
      
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        of a motor vehicle and relating to the placement of a license plate  | 
      
      
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        or the display of a registration insignia that the vehicle was  | 
      
      
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        operated in compliance with rules issued under this subchapter  | 
      
      
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        governing the placement of a digital license plate or the display of  | 
      
      
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        a registration insignia on a digital license plate, as applicable. | 
      
      
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               SECTION 2.  Not later than December 31, 2019, the board of  | 
      
      
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        the Texas Department of Motor Vehicles shall adopt the rules  | 
      
      
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        required by Subchapter B-1, Chapter 504, Transportation Code, as  | 
      
      
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        added by this Act, and any other rules necessary to implement and  | 
      
      
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        administer that subchapter. | 
      
      
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               SECTION 3.  This Act takes effect immediately if it receives  | 
      
      
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        a vote of two-thirds of all the members elected to each house, as  | 
      
      
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        provided by Section 39, Article III, Texas Constitution.  If this  | 
      
      
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        Act does not receive the vote necessary for immediate effect, this  | 
      
      
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        Act takes effect September 1, 2019. |