House File 2552

                                    HOUSE FILE       
                                    BY  COMMITTEE ON WAYS AND MEANS

                                    (SUCCESSOR TO HF 2509)
                                    (SUCCESSOR TO HF 139)


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the issuance of special motor vehicle
  2    registration plates and providing effective and retroactive
  3    applicability dates.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6826HZ 80
  6 dea/sh/8

PAG LIN

  1  1    Section 1.  Section 35A.11, Code 2003, is amended to read
  1  2 as follows:
  1  3    35A.11  VETERANS LICENSE FEE FUND.
  1  4    A veterans license fee fund is created in the state
  1  5 treasury under the control of the commission.  The fund shall
  1  6 include the fees credited by the treasurer of state from the
  1  7 sale of special veteran license plates pursuant to section
  1  8 321.34, subsection 13, paragraph "d".  Notwithstanding section
  1  9 12C.7, interest or earnings on moneys in the veterans license
  1 10 fee fund shall be credited to the veterans license fee fund.
  1 11 Moneys in the fund are appropriated to the commission to be
  1 12 used to fulfill the responsibilities of the commission.
  1 13    Sec. 2.  Section 100B.12, Code Supplement 2003, is amended
  1 14 to read as follows:
  1 15    100B.12  PAUL RYAN MEMORIAL FIRE FIGHTER SAFETY TRAINING
  1 16 FUND.
  1 17    A Paul Ryan memorial fire fighter safety training fund is
  1 18 created in the state treasury under the control of the
  1 19 department of public safety.  The fund shall consist of fees
  1 20 transferred by the treasurer of state from the sale of special
  1 21 fire fighter license plates pursuant to section 321.34,
  1 22 subsection 10.  Moneys in the fund shall be used exclusively
  1 23 by the fire service training bureau to offset fire fighter
  1 24 training costs.  Notwithstanding section 8.33, moneys in the
  1 25 fund shall not revert to the general fund of the state at the
  1 26 end of the fiscal year, but shall remain available for
  1 27 expenditure by the fire service training bureau for fire
  1 28 fighter training in future fiscal years.
  1 29    Sec. 3.  Section 257.31, subsection 17, paragraph d, Code
  1 30 Supplement 2003, is amended to read as follows:
  1 31    d.  Funds transferred to the committee from the sale of
  1 32 special motor vehicle registration plates with an education
  1 33 emblem in accordance with section 321.34, subsection 22, are
  1 34 appropriated to and may be expended for the purposes of the
  1 35 committee, as described in this section.  However, highest
  2  1 priority shall be given to districts that meet the conditions
  2  2 described in this subsection.  Notwithstanding any other
  2  3 provision of the Code, unencumbered or unobligated funds
  2  4 transferred to the committee pursuant to section 321.34,
  2  5 subsection 22, from the sale of special registration plates
  2  6 remaining on June 30 of the fiscal year for which the funds
  2  7 were transferred, shall not revert but shall be available for
  2  8 expenditure for the purposes of this subsection in subsequent
  2  9 fiscal years.
  2 10    Sec. 4.  Section 321.34, subsection 12, paragraphs a and b,
  2 11 Code Supplement 2003, are amended to read as follows:
  2 12    a.  The owner of a motor vehicle subject to registration
  2 13 pursuant to section 321.109, subsection 1, motor truck, motor
  2 14 home, multipurpose vehicle, motorcycle, trailer, or travel
  2 15 trailer may, upon written application to the department, order
  2 16 special registration plates with a distinguishing processed
  2 17 emblem as authorized by this section or as approved by the
  2 18 department.  The fee for the issuance of special registration
  2 19 plates is twenty=five dollars for each vehicle, unless
  2 20 otherwise provided by this section pursuant to subsection 13,
  2 21 paragraph "c", which fee is in addition to the regular annual
  2 22 registration fee.  The county treasurer shall validate special
  2 23 registration plates with a distinguishing processed emblem in
  2 24 the same manner as regular registration plates, upon payment
  2 25 of five dollars in addition to the regular annual registration
  2 26 fee.
  2 27    b.  Upon receipt of a special registration plate with a
  2 28 distinguishing processed emblem as authorized by this section
  2 29 or as approved by the department, the applicant shall
  2 30 surrender the regular registration plates to the county
  2 31 treasurer.  An applicant no longer eligible for a special
  2 32 registration plate shall surrender the special vehicle
  2 33 registration plates to the county treasurer for issuance of
  2 34 regular registration plates.
  2 35    Sec. 5.  Section 321.34, subsection 12, paragraph d, Code
  3  1 Supplement 2003, is amended by striking the paragraph.
  3  2    Sec. 6.  Section 321.34, subsection 13, paragraphs c and d,
  3  3 Code Supplement 2003, are amended to read as follows:
  3  4    c.  The department shall adopt rules pursuant to chapter
  3  5 17A regarding the approval and issuance of special
  3  6 registration plates.  The rules shall include provisions for
  3  7 continued issuance of all special plates, upon payment of the
  3  8 fees associated with those plates, which were authorized as of
  3  9 January 1, 2004.  At the request of a state agency or
  3 10 nonprofit entity, the department may act by rule to adjust the
  3 11 fees charged for a special plate authorized as of January 1,
  3 12 2004, not to exceed the fee amounts established in paragraph
  3 13 "d", or to redesignate the fund to which the fees shall be
  3 14 credited.
  3 15    d.  A state agency or a nonprofit entity which is exempt
  3 16 from federal income taxation pursuant to section 501(c)(3) of
  3 17 the Internal Revenue Code may submit a request to the
  3 18 department recommending a special registration plate with a
  3 19 processed emblem.  The alternate additional fee for letter
  3 20 number designated special plates is thirty=five dollars with a
  3 21 ten dollar.  Five dollars of the thirty=five dollar fee shall
  3 22 be retained for deposit in the road use tax fund.  The
  3 23 additional annual special renewal fee is ten dollars.  The
  3 24 Pursuant to subsection 5, the fee for personalized plates is
  3 25 twenty=five dollars, which is in addition to the alternative
  3 26 fee of thirty=five dollars with an, and the annual
  3 27 personalized plate renewal fee of is five dollars, which is in
  3 28 addition to the special renewal fee of ten dollars.  The
  3 29 alternate fees are in addition to the regular annual
  3 30 registration fee.  The alternate additional fees collected
  3 31 under this paragraph shall be paid monthly to the treasurer of
  3 32 state and credited to the road use tax fund.  Notwithstanding
  3 33 section 423.24 and prior to the crediting of the revenues to
  3 34 the road use tax fund under section 423.24, subsection 1,
  3 35 paragraph "b", the treasurer of state shall credit monthly the
  4  1 net amount of the alternate additional fees collected in the
  4  2 previous month to the state agency or nonprofit entity that
  4  3 recommended the special registration plate.
  4  4    Sec. 7.  Section 321.34, subsection 13, Code Supplement
  4  5 2003, is amended by adding the following new paragraphs:
  4  6    NEW PARAGRAPH.  e.  A special registration plate with a
  4  7 processed emblem shall not be authorized until sufficient paid
  4  8 applications for the special registration plate are received
  4  9 to cover all costs associated with the development,
  4 10 production, and distribution of the special plate and funds
  4 11 transfers.  Special military plates are exempt from minimum
  4 12 prepaid application requirements.
  4 13    NEW PARAGRAPH.  f.  The department shall annually review
  4 14 the costs associated with the issuance of each special
  4 15 processed emblem plate and shall discontinue a plate when
  4 16 revenues from the plate do not exceed total costs.  Special
  4 17 military plates are exempt from review and discontinuance, as
  4 18 deemed appropriate by the department.
  4 19    Sec. 8.  Section 321.34, subsections 3, 7, 8, 8A, 10, 10A,
  4 20 11, 11A, 11B, 14, 15, 16, 17, 18, 19, 20, 21, 22, and 23, Code
  4 21 Supplement 2003, are amended by striking the subsections.
  4 22    Sec. 9.  Section 321.166, subsection 5, Code 2003, is
  4 23 amended to read as follows:
  4 24    5.  There shall be a marked contrast between the color of
  4 25 the registration plates and the data which is required to be
  4 26 displayed on the registration plates.  When a new series of
  4 27 registration plates is issued to replace a current series, the
  4 28 new registration plates shall be of a distinctively different
  4 29 color from the series which is replaced, except for collegiate
  4 30 registration plates issued under section 321.34, subsection 7.
  4 31    Sec. 10.  Section 321L.1, subsection 5, paragraph a, Code
  4 32 2003, is amended to read as follows:
  4 33    a.  A persons with disabilities registration plate issued
  4 34 to or for a person with a disability under section 321.34,
  4 35 subsection 14.
  5  1    Sec. 11.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  5  2 being deemed of immediate importance, takes effect upon
  5  3 enactment and applies to all special registration plates
  5  4 authorized on or after March 1, 2004.
  5  5                           EXPLANATION
  5  6    This bill expands the authority of the state department of
  5  7 transportation to issue and administer special motor vehicle
  5  8 registration plates.  The bill retains the provision in
  5  9 existing law that allows the department to issue a new special
  5 10 plate at the request of any person who provides evidence that
  5 11 there is sufficient interest in the special plate to cover the
  5 12 costs of issuance, provided the proposed plate meets criteria
  5 13 established in administrative rules.  The $25 fee for issuance
  5 14 of such a plate and the $5 annual renewal fee, which are in
  5 15 addition to regular annual registration fees, are credited to
  5 16 the road use tax fund.
  5 17    Current law also allows a state agency to request a special
  5 18 plate with an issuance fee of $35 and an annual renewal fee of
  5 19 $10 in addition to regular annual registration fees.  The
  5 20 amount of the special fees for state agency=sponsored plates
  5 21 is credited to the state agency.  The bill expands this
  5 22 provision by allowing a nonprofit entity which is exempt from
  5 23 federal taxation under section 501(c)(3) of the Internal
  5 24 Revenue Code to request a special registration plate, with the
  5 25 special fees to be credited to the nonprofit entity.  Under
  5 26 the bill, a state agency or nonprofit entity requesting a
  5 27 special plate, other than a special military plate, must
  5 28 obtain sufficient prepaid applications for the plate to cover
  5 29 the department's costs for development, production, and
  5 30 distribution before the plate can be authorized.  In addition,
  5 31 $5 of each $35 issuance fee for special plates sponsored by a
  5 32 state agency or nonprofit entity shall be credited to the road
  5 33 use tax fund.  The department is required to annually review
  5 34 the costs associated with each special plate, other than
  5 35 special military plates, and to discontinue a plate when
  6  1 revenues from the plate do not exceed total costs.
  6  2    The bill strikes Code provisions relating to special
  6  3 registration plates that are currently issued and requires the
  6  4 department to adopt rules to provide for continued issuance of
  6  5 such plates, upon payment of the fees associated with those
  6  6 plates.  The bill also provides that the department may act by
  6  7 rule at the request of a state agency or nonprofit entity to
  6  8 adjust the fees for any of the plates that were authorized as
  6  9 of January 1, 2004, or to redesignate the fund to which the
  6 10 fees are credited.  The fees may not be adjusted beyond the
  6 11 limits established in the bill for special plates requested by
  6 12 state agencies or nonprofit entities.
  6 13    The bill amends related Code provisions to modify
  6 14 references to the stricken special registration plate
  6 15 provisions.
  6 16    The bill takes effect upon enactment and applies to all
  6 17 special plates authorized on or after March 1, 2004.
  6 18 LSB 6826HZ 80
  6 19 dea/sh/8