1. (a) Purpose and scope. The department will enter into a contract with a private vendor to market department-approved specialty license plates in accordance with Transportation Code, §§504.851 - 504.852. This section sets out the procedure for approval of the design, purchase, and replacement of vendor specialty license plates. In this section, the license plates marketed by the vendor are referred to as vendor specialty license plates.

2. (b) Application for approval of vendor specialty license plate designs.

   1. (1) Approval required. The vendor shall obtain the approval of the department for each license plate design the vendor proposes to market in accordance with this section and the contract entered into between the vendor and the department.

   2. (2) Application. The vendor must submit a written application on a form approved by the director to the department for approval of each license plate design the vendor proposes to market. The application must include:

      1. (A) a draft design of the specialty license plate;
      2. (B) projected sales of the plate, including an explanation of how the projected figure was determined;
      3. (C) a marketing plan for the plate including a description of the target market;
      4. (D) a licensing agreement from the appropriate third party for any design or design element that is intellectual property; and
      5. (E) other information necessary for the specialty license plate committee to reach a decision regarding approval of the requested vendor specialty plate.

3. (c) Review and approval process. The specialty license plate committee established under §217.28(i) of this subchapter (relating to Specialty License Plates, Symbols, Tabs, and Other Devices) will review vendor specialty license plate applications.

   1. (1) Committee review. The committee:

      1. (A) will not consider incomplete applications; and
      2. (B) may request additional information from the vendor to reach a decision.

   2. (2) Postponement of decision for additional information.

      1. (A) If the committee reviews an application and determines that additional information is needed, it will postpone the decision on the application until its next meeting.
      2. (B) If the additional requested information is not received before the next committee meeting, the committee will not consider the application and will return it to the vendor as incomplete.

4. (d) Committee recommendation and public comment.

   1. (1) Recommendation. The recommendation of the committee will be based on:

      1. (A) projected sales of the license plate as demonstrated in the marketing plan and by the listing of target purchasers;
      2. (B) compliance with Transportation Code, §504.851 and §504.852;

      3. (C) the proposed license plate design, including:

         1. (i) whether the design meets the legibility and reflectivity standards established by the department;
         2. (ii) whether the design meets the standards established by the department for uniqueness to ensure that the proposed plate complies with Transportation Code, §504.852(c);
         3. (iii) whether the license plate design can accommodate the International Symbol of Access (ISA) as required by Transportation Code, §504.201(h); and
         4. (iv) other information provided during the application process.
   2. (2) Public comment on proposed design. If the committee recommends the issuance of the proposed vendor specialty license plate design, notice of the proposed design will be posted on the department's website for public comment. The department simultaneously will notify all specialty plate organizations and the sponsoring agencies who administer specialty license plates issued in accordance with Transportation Code, Chapter 504, Subchapter G, of the posting. A comment on the proposed design must be submitted in writing and must be received within 10 days after the date that the notice is first posted on the department's website.

5. (e) Final approval and specialty license plate issuance.

   1. (1) Approval. The executive director of the department, or the executive director's designee, not below the level of division director, will make the final decision on the vendor's specialty license plate application based on the committee's recommendation and on all comments received during the period prescribed by subsection (d)(2) of this section, including whether negative comments suggest that the plate would fall under the criteria of §217.22(c)(3)(B)(i) of this subchapter (relating to Motor Vehicle Registration).
   2. (2) Application not approved. If the vendor's application is not approved by the executive director, or the executive director's designee, the vendor must submit a new application and supporting documentation for the design to be considered again by the committee.

   3. (3) Issuance of approved specialty plates.

      1. (A) If the vendor's specialty license plate is approved, the vendor must submit the non-refundable start-up fee before any further design and processing of the license plate.
      2. (B) Approval of the plate does not guarantee that the submitted draft plate design will be used. The department has final approval of all specialty license plate designs and will provide guidance on the submitted draft design to ensure compliance with the format and license plate specifications.

6. (f) Redesign of vendor specialty license plates.

   1. (1) On receipt of a written request from the vendor, the department will allow a redesign of a vendor specialty license plate.
   2. (2) The vendor must pay the redesign administrative costs as provided in the contract between the vendor and the department.
7. (g) Multi-year vendor specialty license plates. Purchasers will have the option of purchasing vendor specialty license plates for a one-year, five-year, or ten-year period.

8. (h) License plate categories and associated fees. The categories and the associated fees for vendor specialty plates are set out in this subsection.

   1. (1) Custom license plates. The fees for issuance of custom license plates are $85 for one year, $225 for five years, and $325 for ten years. Custom license plates include:

      1. (A) license plates with a variety of pre-approved background and character color combinations that may be personalized with either three alpha and two or three numeric characters or two or three numeric and three alpha characters; and
      2. (B) generic license plates on standard white sheeting with the word "Texas" that may be personalized with up to six alphanumeric characters.
   2. (2) T-Plates (Premium) license plates. T-Plates (Premium) license plates may be personalized with up to seven alphanumeric characters on colored backgrounds or designs approved by the department. T-Plates (Premium) license plates will be made available to coincide with extraordinary events of public interest to Texas registrants. The fees for issuance of T-Plates (Premium) license plates are $95 for one year, $395 for five years, and $495 for ten years.
   3. (3) Luxury license plates. Luxury license plates may be personalized with up to six alphanumeric characters on colored backgrounds or designs approved by the department. The department cannot consider a plate that qualifies under paragraph (1)(B) of this subsection as a luxury license plate. The fees for issuance of luxury license plates are $195 for one year, $495 for five years, and $595 for ten years.
   4. (4) Freedom license plates. Freedom license plates include license plates with a variety of pre-approved background and character color combinations that may be personalized with up to seven alphanumeric characters. The fees for issuance of freedom license plates are $395 for one year, $695 for five years, and $795 for ten years.
   5. (5) Background only license plates. Background only license plates include non-personalized license plates with a variety of pre-approved background and character color combinations. The fees for issuance of background only license plates are $55 for one year, $195 for five years, and $295 for ten years.
   6. (6) Vendor souvenir license plates. Vendor souvenir license plates are replicas of vendor specialty license plate designs that may be personalized with up to twenty-four alphanumeric characters. Vendor souvenir license plates are not street legal or legitimate insignias of vehicle registration. The fee for issuance of souvenir license plates is $40.
   7. (7) Auctioned plates transfer fee. In addition to the fee paid to the department after the auction, the transferee will pay the department a fee of $25 when the transfer right of ownership is exercised.

   8. (8) Personalization of license plates.

      1. (A) The fee for the personalization of license plates applied for prior to November 19, 2009 is $40 if the plates are renewed annually.
      2. (B) The personalization fee for plates applied for after November 19, 2009 is $40 if the plates are issued pursuant to Transportation Code, Subchapters G and I.
      3. (C) The personalization fee for plates not subject to subparagraphs (A) and (B) of this paragraph is as provided in this subsection.

9. (i) Payment of fees.

   1. (1) Payment of specialty license plate fees. The fees for issuance of vendor specialty license plates will be paid directly to the vendor for the license plate category and period selected by the purchaser. A person who purchases a multi-year vendor specialty license plate must pay upon purchase the full fee which includes the renewal fees.
   2. (2) Payment of statutory registration fees. To be valid for use on a motor vehicle, the license plate owner is required to pay, in addition to the vendor specialty license plate fees, any statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.
10. (j) Refunds. Fees for vendor specialty license plate fees will not be refunded after an application is submitted to the vendor and the department has approved issuance of the license plate.

11. (k) Replacement.

    1. (1) Application. An owner must apply directly to the county tax assessor-collector for the issuance of replacement vendor specialty license plates and must pay the fee described in paragraph (2), (3), or (4) of this subsection, whichever applies.
    2. (2) Lost or mutilated vendor specialty license plates. To replace vendor specialty license plates that are lost or mutilated, the owner must pay the statutory replacement fee provided in Transportation Code, §502.184.

    3. (3) No-charge replacement. The owner of vendor specialty license plates will receive at no charge replacement license plates as follows:

       1. (A) one set of replacement license plates on or after the seventh anniversary after the date of initial issuance; and
       2. (B) one set of replacement license plates seven years after the date the set of license plates were issued in accordance with subparagraph (A) of this paragraph.
    4. (4) Optional replacements. An owner of a vendor specialty license plate may replace vendor specialty license plates before the seventh anniversary after the date of issuance by submitting a request to the county tax assessor-collector accompanied by the payment of a $30 fee.
    5. (5) Interim replacement tags. If the vendor specialty license plates are lost or mutilated to such an extent that they are unusable, replacement license plates will need to be remanufactured. The county tax assessor-collector will issue interim replacement tags for use until the replacements are available. The owner's vendor specialty license plate number will be shown on the interim replacement tags.
    6. (6) Stolen vendor specialty license plates. The county tax assessor-collector will not approve the issuance of replacement vendor specialty license plates with the same license plate number if the department's records indicate that the vehicle displaying that license plate number was reported stolen or the license plates themselves were reported stolen.

12. (l) Transfer of vendor specialty license plates.

    1. (1) Transfer between vehicles. The owner of a vehicle with vendor specialty license plates may transfer the license plates between vehicles by filing an application through the county tax assessor-collector if the vehicle to which the plates are transferred:

       1. (A) is titled or leased in the owner's name; and
       2. (B) meets the vehicle classification requirements for that particular specialty license plate.
    2. (2) Transfer between owners. Vendor specialty license plates may not be transferred between persons.

13. (m) Gift plates.

    1. (1) A person may purchase plates as a gift for another person if the purchaser submits a statement that provides:

       1. (A) the purchaser's name and address;
       2. (B) the name and address of the person who will receive the plates; and
       3. (C) the vehicle identification number of the vehicle on which the plates will be displayed or a statement that the plates will not be displayed on a vehicle.
    2. (2) To be valid for use on a motor vehicle, the recipient of the plates must file an application with the county tax assessor-collector and pay the statutorily required registration fees in the amount as provided by Transportation Code, Chapter 502, and this subchapter.

14. (n) Restyled vendor specialty license plates. A person who has purchased a multi-year vendor specialty license plate may request a restyled license plate at any time during the term of the plate.

    1. (1) For the purposes of this subsection, "restyled license plate" is a vendor specialty license plate that has a different style from the originally purchased vendor specialty license plate but:

       1. (A) is within the same price category; and
       2. (B) has the same alpha-numeric characters and expiration date as the previously issued multi-year license plates.
    2. (2) The fee for each restyled license plate is $55.

Source Note:The provisions of this §217.40 adopted to be effective March 4, 2010, 35 TexReg 1761.