HB 3365

Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
neutral
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest

HB 3365 amends Section 504.851(i), Transportation Code, which governs contracts between the Texas Department of Motor Vehicles and a private vendor for specialty license plate services. The Committee Substitute for House Bill 3365 requires such a contract to allow the vendor to offer home delivery of license plates for an additional fee, with delivery made to the registered owner’s address as shown in the department’s vehicle registration records.

The bill also addresses situations in which a county tax assessor-collector customarily charges a fee for handling and distributing specialty license plates. If the private vendor offers home delivery and such a county fee applies, the contract must allow the vendor either to collect the fee on behalf of the county tax assessor-collector and remit it to the county, or to recover the vendor’s cost by charging an additional fee equal to the county fee.

In practical terms, the bill creates a statutory framework for optional direct delivery of specialty license plates through the existing private-vendor arrangement. It does not require vehicle owners to use home delivery, but it allows the vendor to provide that convenience for an additional charge while preserving county handling-fee treatment where those fees are already customarily charged.

The originally filed version of HB 3365 and the Committee Substitute both amend Section 504.851(i), Transportation Code, to require the Texas Department of Motor Vehicles’ private-vendor specialty license plate contract to allow home delivery of license plates for an additional fee. Both versions also preserve the existing contract requirements related to general contracting compliance, quarterly accounting, remittance of money owed to the department, electronic infrastructure, and premium embossed specialty license plates.

The main difference is that the originally filed bill placed the home-delivery language in a single new subdivision. It stated that the vendor must be allowed to offer home delivery “as an option to a purchaser” for an additional fee, that the vendor may “recover or remit” county tax assessor-collector fees customarily charged for handling and distributing specialty plates, and that a purchaser is eligible for home delivery only if the delivery address matches the vehicle’s registered address.

The Committee Substitute reorganizes and clarifies that language. It specifies that home delivery must be offered to the registered owner’s address as shown in the department’s vehicle registration records. It also separates county-fee treatment into a new subdivision and provides two express alternatives: the vendor may collect the county handling fee on behalf of the county tax assessor-collector and remit it to the county, or the vendor may recover its cost by charging an additional fee equal to the county fee.

In practical terms, the Committee Substitute does not appear to change the bill’s basic policy direction. It still authorizes optional home delivery through the private vendor and still addresses county handling fees. The substitute’s changes matter because they make the delivery address standard more precise and make the county-fee mechanism clearer, reducing ambiguity over whether the vendor is acting as a pass-through collector for the county or charging a separate cost-recovery fee.

Author (1)
Mary Perez
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 3365 is not expected to have a significant fiscal impact on the state. The fiscal note states that any costs associated with implementing the bill are assumed to be absorbable within existing resources.

For state government, the relevant agencies are the Comptroller of Public Accounts and the Texas Department of Motor Vehicles. Because the bill works through an existing private-vendor contract for certain license plate services and authorizes an additional optional fee for home delivery, LBB does not identify a need for new appropriations, staffing, or major system costs.

For local governments, LBB likewise anticipates no significant fiscal implication. Although the bill addresses fees customarily charged by county tax assessor-collectors for handling and distributing specialty license plates, the fiscal note does not project a meaningful local revenue gain or cost increase from that fee treatment.

Vote Recommendation Notes

Texas Policy Research recommends that lawmakers vote YES on HB 3365 because it is a narrow consumer-convenience bill that operates within an existing Texas Department of Motor Vehicles contract structure. The bill allows a private vendor that already works with the department on certain specialty license plates to offer home delivery of those plates for an additional fee. The delivery must be made to the registered owner’s address as shown in TxDMV vehicle registration records, which limits the service to a defined and verifiable delivery point.

The bill does not materially grow the size or scope of government. It does not create a new agency, office, state program, fund, criminal offense, or enforcement mechanism. The House bill analysis also states that the bill does not expressly grant additional rulemaking authority to a state officer, department, agency, or institution. Instead, the bill adds a limited requirement to an existing private-vendor contract by specifying that the vendor must be allowed to offer home delivery and must be allowed to address certain county handling fees when applicable.

The bill does not increase the burden on taxpayers in any significant way. According to the Legislative Budget Board, no significant fiscal implication to the state is anticipated, and any costs associated with the bill are assumed to be absorbable within existing resources. LBB also anticipates no significant fiscal implication to units of local government.

The bill’s fee structure is also relatively restrained. The additional home-delivery fee applies only if a consumer chooses that optional service. If a county tax assessor-collector customarily charges a fee for handling and distributing specialty license plates, the vendor may either collect and remit that fee to the county or recover the vendor’s cost by charging an additional fee equal to the county fee. This means the bill does authorize fee handling, but it does so in connection with an optional delivery service and existing county fee practices rather than imposing a broad new charge on all vehicle owners.

The bill does not appear to increase the regulatory burden on individuals. Vehicle owners are not required to use home delivery, purchase a specialty plate, or pay the added delivery fee unless they choose the service. The registered-address requirement may limit delivery flexibility, but it is a narrow administrative safeguard tied to existing vehicle registration records rather than a new compliance regime.

For businesses, the bill modestly affects the private vendor’s contract terms, but it does not impose a broad regulation across an industry or create a new licensing or permitting requirement. The vendor is permitted to offer an additional service and recover or remit certain costs under specified conditions. Because this applies to a vendor already operating under a TxDMV contract, the business impact is limited and tied to an existing state-administered specialty plate program.

On balance, HB 3365 modestly improves consumer convenience without meaningfully expanding government, increasing taxpayer exposure, or adding a broad regulatory burden.

Free Enterprise
positive
The bill has a modest positive impact on free enterprise by allowing the existing private vendor to offer an additional service to consumers. It gives the vendor more flexibility within the state’s specialty license plate system and permits cost recovery for delivery-related handling fees. The effect is limited because the vendor still operates under a state contract rather than in a fully open market.
Property Rights
neutral
The bill does not meaningfully affect private property rights. It does not regulate land use, authorize takings, affect ownership or control of property, or impose property-based compliance obligations.
Personal Responsibility
positive
The bill supports personal responsibility because the person who chooses the optional home-delivery service pays the added fee. It does not shift the cost of this convenience service to taxpayers generally. The bill also allows county handling fees, where customarily charged, to be remitted or recovered through a user-based fee structure.
Limited Government
positive
The bill has a positive limited-government impact because it does not create a new agency, program, criminal offense, or rulemaking authority. The bill analysis states that it does not expressly grant additional rulemaking authority, and the fiscal note anticipates no significant fiscal implication to state or local government. While it does add direction to an existing TxDMV vendor contract, that change is narrow and tied to an optional user-paid delivery service.
Individual Liberty
positive
The bill modestly improves individual liberty by giving specialty license plate purchasers an additional option: home delivery for an added fee. Vehicle owners are not required to use the service, and delivery is limited to the registered owner’s address in Texas Department of Motor Vehicles records, which is a narrow administrative safeguard rather than a significant restriction.
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