By: Paddie, et al. (Senate Sponsor - Paxton)	H.B. No. 1711
	(In the Senate - Received from the House April 24, 2019;
	April 25, 2019, read first time and referred to Committee on
	Transportation; May 15, 2019, reported adversely, with favorable
	Committee Substitute by the following vote:  Yeas 6, Nays 1;
	May 15, 2019, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR H.B. No. 1711	By:  Hancock

	A BILL TO BE ENTITLED
	AN ACT
	relating to the issuance of digital license plates; authorizing a
	fee.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 504, Transportation Code, is amended by
	adding Subchapter B-1 to read as follows:
	SUBCHAPTER B-1. DIGITAL LICENSE PLATES
	Sec. 504.151.  DEFINITIONS. In this subchapter:
	(1)  "Digital license plate" means an electronic
	display that is designed to:
	(A)  display the information required to be
	included on a physical license plate; and
	(B)  be placed on the rear of a vehicle in lieu of
	a physical license plate issued under this chapter.
	(2)  "Digital license plate provider" means a person
	engaged in the business of providing digital license plate hardware
	and services to vehicle owners, including the sale or lease of and
	issuance of digital license plates.
	Sec. 504.152.  APPLICABILITY OF OTHER LAW. Except as
	otherwise provided by this subchapter or a rule adopted under this
	subchapter, a digital license plate issued under this subchapter is
	subject to the laws of this state applicable to a physical license
	plate.
	Sec. 504.153.  RULES. The board shall adopt rules as
	necessary to implement and administer this subchapter.
	Sec. 504.154.  DIGITAL LICENSE PLATES AUTHORIZED;
	FUNCTIONALITY. (a) The board by rule shall allow a vehicle
	described by Subsection (b) to be equipped with a digital license
	plate that is placed on the rear of the vehicle in lieu of a physical
	license plate issued under this chapter. The rule must require the
	owner of a vehicle issued a digital license plate to obtain a
	physical license plate to be placed on the front of the vehicle
	unless the vehicle is of a class of vehicles that is not required to
	display two license plates, as provided by other law.
	(b)  A vehicle registered under Chapter 502 may be equipped
	with a digital license plate only if the vehicle:
	(1)  is part of a commercial fleet, as defined by
	Section 502.001;
	(2)  is owned or operated by a governmental entity; or
	(3)  is not a passenger vehicle.
	(c)  The department may contract with digital license plate
	providers for the issuance of digital license plates, including any
	services related to the issuance of digital license plates.
	(d)  Notwithstanding any other law, rules adopted under this
	subchapter:
	(1)  shall authorize the display of the vehicle's
	registration insignia on a digital license plate issued for the
	vehicle in lieu of attaching the registration insignia to the
	inside of the vehicle's windshield as required by Section 502.059;
	(2)  may establish a fee in an amount necessary to cover
	any administrative costs incurred that relate to the issuance of a
	digital license plate and exceed the administrative costs incurred
	for the issuance of a physical license plate;
	(3)  shall prohibit a digital license plate provider
	from contracting with the department under Subchapter J;
	(4)  shall authorize the use of a digital license plate
	for electronic toll collection or to display a parking permit; and
	(5)  may establish procedures for displaying on a
	digital license plate:
	(A)  an emergency alert or other public safety
	alert issued by a governmental entity, including an alert
	authorized under Subchapter L, M, or P, Chapter 411, Government
	Code;
	(B)  vehicle manufacturer safety recall notices;
	(C)  static logo displays, including unique
	displays for fleet vehicles; or
	(D)  advertising approved by the department.
	Sec. 504.155.  DIGITAL LICENSE PLATE REQUIREMENTS. (a) The
	board by rule shall set the specifications and requirements for
	digital license plates, including requirements for the placement of
	digital license plates. The design of and information displayed on
	a digital license plate must be approved by the department.
	(b)  A digital license plate issued under this subchapter
	must:
	(1)  meet the specifications and requirements adopted
	under Subsection (a);
	(2)  include the information required to be included on
	a physical license plate and legibly display that information at
	all times and in all light conditions, provided that the license
	plate may display the information in a smaller typeface when the
	vehicle is parked;
	(3)  have wireless connectivity capability; and
	(4)  provide benefits to law enforcement that meet or
	exceed the benefits provided by physical license plates as of the
	time of enactment of this subchapter and as determined by the
	Department of Public Safety.
	(c)  The Department of Public Safety may test digital license
	plates to ensure that the digital license plates comply with the
	requirements of Subsection (b).
	Sec. 504.156.  DIGITAL LICENSE PLATE PROVIDER POWERS AND
	DUTIES. A digital license plate provider with whom the department
	contracts under Section 504.154:
	(1)  shall maintain a database of the digital license
	plates issued by the provider in this state;
	(2)  shall make available a digital version of each
	specialty license plate authorized by this chapter, other than
	personalized license plates authorized for marketing and sale under
	Subchapter J, provided that:
	(A)  each issuance of a specialty license plate
	with restricted distribution, including a license plate authorized
	under Subchapter C, D, E, or F, must be approved by the department;
	and
	(B)  the provider shall remit to the department in
	the manner prescribed by the department all money:
	(i)  payable to the department; or
	(ii)  required to be used or deposited in the
	manner prescribed by the law establishing the license plate;
	(3)  may contract with the private vendor under
	Subchapter J to make available a digital version of a personalized
	license plate authorized for marketing and sale under that
	subchapter, provided that the contract shall conform with any
	applicable requirements of Subchapter J and the terms of the
	private vendor's contract with the department;
	(4)  shall promptly update the display of the
	registration insignia to reflect the current registration period
	for the vehicle and, on request of the department, suspend the
	display of the registration insignia or indicate on the license
	plate that the registration insignia for the vehicle is expired;
	(5)  may provide any service related to the issuance of
	a digital license plate that is authorized by board rule, including
	the sale, lease, and installation of and customer service for a
	digital license plate; and
	(6)  may charge a fee, payable in installments, for the
	issuance of a digital license plate or any additional services
	provided by the provider for that license plate.
	Sec. 504.157.  DEFENSE TO PROSECUTION OF CERTAIN OFFENSES.
	It is a defense to prosecution of an offense involving the operation
	of a motor vehicle and relating to the placement of a license plate
	or the display of a registration insignia that the vehicle was
	operated in compliance with rules issued under this subchapter
	governing the placement of a digital license plate or the display of
	a registration insignia on a digital license plate, as applicable.
	SECTION 2.  Not later than December 31, 2019, the board of
	the Texas Department of Motor Vehicles shall adopt the rules
	required by Subchapter B-1, Chapter 504, Transportation Code, as
	added by this Act, and any other rules necessary to implement and
	administer that subchapter.
	SECTION 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2019.
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