HBA-NIK C.S.H.B. 2461 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2461
By: Alexander
Transportation
4/6/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

Currently, the Texas Department of Transportation (department) produces
over 50 specially designed license plates.  Such license plates have
traditionally been seen as a fundraising tool for charitable organizations,
colleges, and universities.  However, most specialty license plates have
not covered the cost to the department for the production of the plates.
C.S.H.B. 2461 requires the discontinuance of certain license plates if they
do not meet minimum sales figures or unless a $15,000 deposit is made to
the department. This bill also decreases the annual fee for a "Keep Texas
Beautiful" license plate. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter F, Chapter 502, Transportation Code, by adding
Sections 502.2525 and 502.2526, as follows: 

Sec. 502.2525. DISCONTINUANCE OF CERTAIN SPECIALIZED LICENSE PLATES. (a)
Provides that this section applies only to specialized license plates
authorized by the enumerated sections.   

(b) Authorizes the Texas Department of Transportation (department), except
as provided by Subsections (d) and (e), on or after September 1, 2004, to
continue to issue license plates to which this section applies only if
before that date at least 3,500 sets of the specified specialized license
plates have been issued or presold, at least $15,000 has been received by
the department from the issuance of specified license plates, or $15,000
has been deposited with the department for the continued issuance of those
license plates. 

(c)  Provides that, if before September 1, 2004, one of the conditions
described by Subsection (b) is not met for a type of license plate to which
this section applies, the section of this subchapter that authorizes the
issuance of that type of license plate expires on that date. 

(d) Authorizes the department to continue to issue license plates, on or
after September 1, 2004, under Section 502.270 (Collegiate License Plates)
for a particular institution of higher education or private college or
university only if before that date the specified sales or financial
requirements are met, or under Section 502.2703 (Professional Sports Team
License Plates) for a particular professional sports team only if before
that date specified sales or financial requirements are met. 

(e) Provides that, if before September 1, 2004, the department has not
issued any license plates under Section 502.2703, that section expires on
that date. 

(f) Requires money deposited with the department under specified subsection
(b)(3), (d)(1)(C), or (d)(2)(C) to be returned by the department to the
person who made the deposit only after the requisite number of license
plates under those subsections are issued or presold. 

 Sec. 502.2526. SPECIALIZED LICENSE PLATES AUTHORIZED AFTER JANUARY 1,
1999. (a) Provides that this section applies only to specialized license
plates that are authorized to be issued by a law that takes effect on or
after January 1, 1999. 

(b) Authorizes the department to manufacture the specialized license plates
only if a request for manufacture of the license plates is filed with the
department.  Provides that the request must adhere to enumerated
provisions. 

(c) Requires that money deposited with the department under Subsection (b)
to be returned to the person who made the deposit only if 3,500 sets of the
applicable license plates are issued or presold. 

(d) Provides that if a request is not filed with the department before the
date specified by Subsection (b), the law that authorizes the issuance of
the specialized license plates expires on that date. 

SECTION 2.  Amends Section 502.2731, Transportation Code, to decrease the
annual fee a person pays to $25, rather than $50, for a "Keep Texas
Beautiful" license plate.  Authorizes $20, rather than $45, of each fee
collected under this section to be used by the department only for the
purposes of supporting the department's litter prevention and community
beautification programs. 

SECTION 3.  Emergency clause.
            Effective date: 90 days after adjournment.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2461 modifies the original SECTION 1 by adding Section 502.2526
(Specialized License Plates Authorized After January 1, 1999).  Provides
that this section applies only to specialized license plates that are
authorized to be issued by a law that takes effect on or after January 1,
1999. Authorizes the department to manufacture the specialized license
plates only if a request for manufacture of the license plates is filed
with. Provides that request must adhere to enumerated provisions.  Requires
money deposited with the department to be returned to the person who made
the deposit only if 3,500 sets of the applicable license plates are issued
or presold.  Provides that the law that authorizes the issuance of the
specialized license plates expires if a request for license plates is not
filed by a certain date. 

C.S.H.B. 2461 modifies the original by creating a new SECTION 2 (Sections
502.2731 (c) and (e), Transportation Code) to modify the fee rates for
license plates. 

C.S.H.B. 2461 modifies the original by redesignating the emergency clause
in SECTION 2 to SECTION 3.