(a) The department may enter into a contract with the private vendor whose proposal is most advantageous to the state, as determined from competitive sealed proposals that satisfy the requirements of this section, for the marketing and sale of:
(1) personalized license plates; or
(2) with the agreement of the private vendor, other specialty license plates authorized by Subchapters G and I.
(a-1) The department may not issue specialty, personalized, or souvenir license plates with background colors other than white, unless the plates are marketed and sold by the private vendor.

(a-2) Specialty license plates authorized for marketing and sale under Subsection (a) may be personalized and must include:
(1) specialty license plates created under Subchapters G and I on or after November 19, 2009; and
(2) at the request of the specialty license plate sponsor, an existing specialty license plate created under Subchapters G and I before November 19, 2009.
(a-3) The department may contract with the private vendor for the vendor to:
(1) host all or some of the specialty license plates on the vendor’s website;
(2) process the purchase of specialty license plates hosted on the vendor’s website and pay any additional transaction cost; and
(3) share in the personalization fee for the license plates hosted on the vendor’s website.
(b) The board by rule shall establish fees for the issuance or renewal of personalized license plates that are marketed and sold by the private vendor. Fees must be reasonable and not less than the greater of:
(1) the amounts necessary to allow the department to recover all reasonable costs to the department associated with the evaluation of the competitive sealed proposals received by the department and with the implementation and enforcement of the contract, including direct, indirect, and administrative costs; or
(2) the amount established by § 504.853(b).
(c) The board by rule shall establish the fees for the issuance or renewal of souvenir license plates, specialty license plates, or souvenir or specialty license plates that are personalized that are marketed and sold by the private vendor or hosted on the private vendor’s website. The state’s portion of the personalization fee may not be less than $40 for each year issued. Other fees must be reasonable and not less than the amounts necessary to allow the department to recover all reasonable costs to the department associated with the evaluation of the competitive sealed proposals received by the department and with the implementation and enforcement of the contract, including direct, indirect, and administrative costs. A fee established under this subsection is in addition to:
(1) the registration fee and any optional registration fee prescribed by this chapter for the vehicle for which specialty license plates are issued;
(2) any additional fee prescribed by this subchapter for the issuance of specialty license plates for that vehicle; and
(3) any additional fee prescribed by this subchapter for the issuance of personalized license plates for that vehicle.
(c-1) Subsections (b) and (c) do not apply to the sale at auction of a specialty plate or personalized specialty plate that is not used on a motor vehicle.
(d) At any time as necessary to comply with Subsection (b) or (c), the board may increase or decrease the amount of a fee established under the applicable subsection.
(e) The portion of a contract with a private vendor regarding the marketing and sale of personalized license plates is payable only from amounts derived from the collection of the fee established under Subsection (b). The portion of a contract with a private vendor regarding the marketing, hosting, and sale of souvenir license plates, specialty license plates, or souvenir or specialty license plates that are personalized under § 504.102 is payable only from amounts derived from the collection of the fee established under Subsection (c).
(f) The department may approve new design and color combinations for personalized or specialty license plates that are marketed and sold by a private vendor under a contract entered into with the private vendor. Each approved license plate design and color combination remains the property of the department.
(g) The department may approve new design and color combinations for specialty license plates authorized by this chapter, including specialty license plates that may be personalized, that are marketed and sold by a private vendor under a contract entered into with the private vendor. Each approved license plate design and color combination remains the property of the department. Except as otherwise provided by this chapter, this subsection does not authorize:
(1) the department to approve a design or color combination for a specialty license plate that is inconsistent with the design or color combination specified for the license plate by the section of this chapter that authorizes the issuance of the specialty license plate; or
(2) the private vendor to market and sell a specialty license plate with a design or color combination that is inconsistent with the design or color combination specified by that section.
(g-1) The department may not:
(1) publish a proposed design or color combination for a specialty license plate for public comment in the Texas Register or otherwise, except on the department’s website for a period not to exceed 10 days; or
(2) restrict the background color, color combinations, or color alphanumeric license plate numbers of a specialty license plate, except as determined by the Department of Public Safety as necessary for law enforcement purposes.
(h) Subject to the limitations provided by Subsections (g) and (g-1), the department may disapprove a design, cancel a license plate, or require the discontinuation of a license plate design or color combination that is marketed, hosted, or sold by a private vendor under contract at any time if the department determines that the disapproval, cancellation, or discontinuation is in the best interest of this state or the motoring public.
(i) A contract entered into by the department with a private vendor under this section:
(1) must comply with any law generally applicable to a contract for services entered into by the department;
(2) must require the private vendor to render at least quarterly to the department periodic accounts that accurately detail all material transactions, including information reasonably required by the department to support fees that are collected by the vendor, and to regularly remit all money payable to the department under the contract;
(3) may allow or require the private vendor to establish an electronic infrastructure coordinated and compatible with the department’s registration system, by which motor vehicle owners may electronically send and receive applications, other documents, or required payments, and that, when secure access is necessary, can be electronically validated by the department; and
(4) must allow for the establishment of a range of premium embossed specialty license plates to be sourced, marketed, and sold by the vendor.
(j) From amounts received by the department under the contract described by Subsection (a), the department shall deposit to the credit of the Texas Department of Motor Vehicles fund an amount sufficient to enable the department to recover its administrative costs for all license plates issued under this section, any payments to the vendor under the contract, and any other amounts allocated by law to the Texas Department of Motor Vehicles fund. To the extent that the disposition of other amounts received by the department is governed by another law, those amounts shall be deposited in accordance with the other law. Any additional amount received by the department under the contract shall be deposited to the credit of the general revenue fund.
(k) Repealed by Acts 2011, 82nd Leg., R.S., Ch. 1296, Sec. 247(22), eff. January 1, 2012.
(l) A contract entered into with the private vendor shall provide for the department to recover all costs incurred by the department in implementing this section. Under the contract, the department may require the private vendor to reimburse the department in advance for:
(1) not more than one-half of the department’s anticipated costs in connection with the contract; and
(2) the department’s anticipated costs in connection with the introduction of a new specialty license plate.
(m) If the private vendor ceases operation:
(1) the program may be operated temporarily by the department under new agreements with the license plate sponsors until another vendor is selected and begins operation; and
(2) the private vendor’s share of the revenue is deposited to the credit of the general revenue fund.