House Study Bill 547 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON TJEPKES) A BILL FOR An Act relating to funding for Iowa roads, including by 1 increasing and imposing certain vehicle registration 2 fees and taxes, modifying appropriations and allocations 3 from certain funds, providing for the use of certain 4 fees, increasing motor vehicle fuel taxes, providing 5 accountability measures, and including effective date 6 provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5429YC (9) 84 dea/nh

H.F. _____ DIVISION I 1 FEE FOR NEW REGISTRATION AND USE TAX 2 Section 1. Section 312.2, Code 2011, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 18. a. The treasurer of state, before 5 making the allotments provided for in this section, shall 6 credit monthly from the road use tax fund to the TIME-21 fund 7 created in section 312A.2 the following amounts: 8 (1) An amount equal to one-sixth of the revenues collected 9 from fees for new registration pursuant to section 321.105A, 10 subsections 2 and 3. 11 (2) An amount equal to one-sixth of the revenues collected 12 from the use tax pursuant to sections 423.26 and 423.26A. 13 b. This subsection is repealed June 30, 2028. 14 Sec. 2. Section 321.105A, subsection 2, unnumbered 15 paragraph 1, Code Supplement 2011, is amended to read as 16 follows: 17 In addition to the annual registration fee required under 18 section 321.105 , a “fee for new registration” is imposed 19 in the amount of five six percent of the purchase price 20 for each vehicle subject to registration. The fee for new 21 registration shall be paid by the owner of the vehicle to the 22 county treasurer at the time application is made for a new 23 registration and certificate of title, if applicable. A new 24 registration receipt shall not be issued until the fee has been 25 paid. The county treasurer or the department of transportation 26 shall require every applicant for a new registration receipt 27 for a vehicle subject to registration to supply information as 28 the county treasurer or the director deems necessary as to the 29 time of purchase, the purchase price, and other information 30 relative to the purchase of the vehicle. On or before the 31 tenth day of each month, the county treasurer or the department 32 of transportation shall remit to the department of revenue the 33 amount of the fees for new registration collected during the 34 preceding month. 35 -1- LSB 5429YC (9) 84 dea/nh 1/ 24

H.F. _____ Sec. 3. Section 321.105A, subsection 3, paragraph a, Code 1 Supplement 2011, is amended to read as follows: 2 a. A fee for new registration is imposed in an amount 3 equal to five six percent of the leased price for each vehicle 4 subject to registration with a gross vehicle weight rating of 5 less than sixteen thousand pounds which is leased by a lessor 6 licensed pursuant to chapter 321F for a period of twelve months 7 or more. The fee for new registration shall be paid by the 8 owner of the vehicle to the county treasurer from whom the 9 registration receipt or certificate of title is obtained. A 10 registration receipt for a vehicle subject to registration or 11 issuance of a certificate of title shall not be issued until 12 the fee for new registration is paid in the initial instance. 13 Sec. 4. Section 423.5, Code Supplement 2011, is amended to 14 read as follows: 15 423.5 Imposition of tax. 16 1. a. Except as provided in subsection 3 2 , an excise tax 17 at the rate of six percent of the purchase price or installed 18 purchase price is imposed on the following: 19 1. (1) The use in this state of tangible personal property 20 as defined in section 423.1 , including aircraft subject to 21 registration under section 328.20 , purchased for use in this 22 state. For the purposes of this subchapter , the furnishing 23 or use of the following services is also treated as the use 24 of tangible personal property: optional service or warranty 25 contracts, except residential service contracts regulated under 26 chapter 523C , vulcanizing, recapping, or retreading services, 27 engraving, photography, retouching, printing, or binding 28 services, and communication service when furnished or delivered 29 to consumers or users within this state. 30 2. (2) The use of manufactured housing in this state, 31 on the purchase price if the manufactured housing is sold in 32 the form of tangible personal property or on the installed 33 purchase price if the manufactured housing is sold in the form 34 of realty. 35 -2- LSB 5429YC (9) 84 dea/nh 2/ 24

H.F. _____ 3. An excise tax at the rate of five percent is imposed 1 on the use of vehicles subject only to the issuance of a 2 certificate of title and the use of manufactured housing, and 3 on the use of leased vehicles, if the lease transaction does 4 not require titling or registration of the vehicle, on the 5 amount subject to tax as calculated pursuant to section 423.26, 6 subsection 2 . 7 4. (3) Purchases of tangible personal property made from 8 the government of the United States or any of its agencies by 9 ultimate consumers shall be subject to the tax imposed by this 10 section . Services purchased from the same source or sources 11 shall be subject to the service tax imposed by this subchapter 12 and apply to the user of the services. 13 5. (4) The use in this state of services enumerated in 14 section 423.2 . This tax is applicable where the service is 15 first used in this state. 16 6. (5) The excise tax is imposed upon every person using 17 the property within this state until the tax has been paid 18 directly to the county treasurer, the state department of 19 transportation, a retailer, or the department. This tax is 20 imposed on every person using the services or the product of 21 the services in this state until the user has paid the tax 22 either to an Iowa use tax permit holder or to the department. 23 7. (6) For the purpose of the proper administration of 24 the use tax and to prevent its evasion, evidence that tangible 25 personal property was sold by any person for delivery in this 26 state shall be prima facie evidence that such tangible personal 27 property was sold for use in this state. 28 8. (7) Any person or that person’s affiliate, which is a 29 retailer in this state or a retailer maintaining a place of 30 business in this state under this chapter , that enters into a 31 contract with an agency of this state must register, collect, 32 and remit Iowa use tax under this chapter on all sales of 33 tangible personal property and enumerated services. Every 34 bid submitted and each contract executed by a state agency 35 -3- LSB 5429YC (9) 84 dea/nh 3/ 24

H.F. _____ shall contain a certification by the bidder or contractor 1 stating that the bidder or contractor is registered with the 2 department and will collect and remit Iowa use tax due under 3 this chapter . In the certification, the bidder or contractor 4 shall also acknowledge that the state agency may declare the 5 contract or bid void if the certification is false. Fraudulent 6 certification, by act or omission, may result in the state 7 agency or its representative filing for damages for breach of 8 contract. 9 9. b. The use tax rate of six percent imposed under this 10 subsection is reduced to five percent on January 1, 2030. 11 2. An excise tax at the rate of six percent is imposed 12 on the use of vehicles subject only to the issuance of a 13 certificate of title and the use of manufactured housing, and 14 on the use of leased vehicles, if the lease transaction does 15 not require titling or registration of the vehicle, on the 16 amount subject to tax as calculated pursuant to section 423.26, 17 subsection 2. 18 DIVISION II 19 ANNUAL REGISTRATION FEES 20 Sec. 5. Section 312.2, Code 2011, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 19. a. The treasurer of state, before 23 making the allotments provided for in this section, shall 24 credit monthly from the road use tax fund to the TIME-21 25 fund created in section 312A.2 the amount received by the 26 treasurer from the additional sums collected as registration 27 fees for hybrid vehicles, mixed fuel vehicles, alternative fuel 28 vehicles, fuel cell vehicles, and plug-in electric vehicles 29 pursuant to section 321.109, subsection 1, paragraph “b” ; 30 section 321.113, subsections 2, 3, and 4; section 321.121, 31 subsection 1, paragraph “e” ; section 321.122, subsection 2A; 32 and section 321.124, subsection 3, paragraph “e” . 33 b. This subsection is repealed June 30, 2028. 34 Sec. 6. Section 321.1, Code Supplement 2011, is amended by 35 -4- LSB 5429YC (9) 84 dea/nh 4/ 24

H.F. _____ adding the following new subsections: 1 NEW SUBSECTION . 4A. “Alternative fuel” means compressed 2 natural gas, liquefied natural gas, liquefied petroleum gas, 3 hydrogen, or any liquid at least eighty-five percent of the 4 volume of which consists of methanol. 5 NEW SUBSECTION . 4B. “Alternative fuel vehicle” means a 6 motor vehicle which can only operate on alternative fuel. 7 NEW SUBSECTION . 27A. “Fuel cell vehicle” means a motor 8 vehicle that is propelled by power derived from one or more 9 cells which convert chemical energy directly into electricity 10 by combining oxygen with hydrogen fuel which is stored on board 11 the vehicle in any form and may or may not require reformation 12 prior to use. 13 NEW SUBSECTION . 31A. “Hybrid vehicle” means a motor vehicle 14 which draws propulsion energy from onboard sources of stored 15 energy which are both an internal combustion or heat engine 16 using petroleum-based fuel and a rechargeable energy storage 17 system. 18 NEW SUBSECTION . 39. “Mixed fuel vehicle” means a motor 19 vehicle certified by the manufacturer as being able to 20 perform efficiently in normal operation on a combination of an 21 alternative fuel and a petroleum-based fuel. 22 NEW SUBSECTION . 52A. “Plug-in electric vehicle” means a 23 motor vehicle that is propelled to a significant extent by an 24 electric motor which draws electricity from a battery which has 25 a capacity of not less than four kilowatt hours and is capable 26 of being recharged from an external source of electricity. 27 Sec. 7. Section 321.109, subsection 1, Code 2011, is amended 28 to read as follows: 29 1. a. The annual fee for all motor vehicles including 30 vehicles designated by manufacturers as station wagons, 1993 31 and subsequent model year multipurpose vehicles, and 2010 and 32 subsequent model year motor trucks with an unladen weight of 33 ten thousand pounds or less, except motor trucks registered 34 under section 321.122 , business-trade trucks, special trucks, 35 -5- LSB 5429YC (9) 84 dea/nh 5/ 24

H.F. _____ motor homes, ambulances, hearses, motorcycles, motorized 1 bicycles, and 1992 and older model year multipurpose vehicles, 2 shall be equal to one percent of the value as fixed by the 3 department plus forty cents for each one hundred pounds 4 or fraction thereof of weight of vehicle, as fixed by the 5 department , plus the additional sum required under paragraph 6 “b” , if applicable . The weight of a motor vehicle, fixed by 7 the department for registration purposes, shall include the 8 weight of a battery, heater, bumpers, spare tire, and wheel. 9 Provided, however, that for any new vehicle purchased in 10 this state by a nonresident for removal to the nonresident’s 11 state of residence the purchaser may make application to the 12 county treasurer in the county of purchase for a transit plate 13 for which a fee of ten dollars shall be paid. And provided, 14 however, that for any used vehicle held by a registered dealer 15 and not currently registered in this state, or for any vehicle 16 held by an individual and currently registered in this state, 17 when purchased in this state by a nonresident for removal to 18 the nonresident’s state of residence, the purchaser may make 19 application to the county treasurer in the county of purchase 20 for a transit plate for which a fee of three dollars shall 21 be paid. The county treasurer shall issue a nontransferable 22 certificate of registration for which no refund shall be 23 allowed; and the transit plates shall be void thirty days 24 after issuance. Such purchaser may apply for a certificate 25 of title by surrendering the manufacturer’s or importer’s 26 certificate or certificate of title, duly assigned as provided 27 in this chapter . In this event, the treasurer in the county 28 of purchase shall, when satisfied with the genuineness and 29 regularity of the application, and upon payment of a fee of 30 twenty dollars, issue a certificate of title in the name and 31 address of the nonresident purchaser delivering the title 32 to the owner. If there is a security interest noted on the 33 title, the county treasurer shall mail to the secured party an 34 acknowledgment of the notation of the security interest. The 35 -6- LSB 5429YC (9) 84 dea/nh 6/ 24

H.F. _____ county treasurer shall not release a security interest that 1 has been noted on a title issued to a nonresident purchaser 2 as provided in this paragraph. The application requirements 3 of section 321.20 apply to a title issued as provided in this 4 subsection , except that a natural person who applies for a 5 certificate of title shall provide either the person’s social 6 security number, passport number, or driver’s license number, 7 whether the license was issued by this state, another state, or 8 another country. The provisions of this subsection relating to 9 multipurpose vehicles are effective for all 1993 and subsequent 10 model years. The annual registration fee for multipurpose 11 vehicles that are 1992 model years and older shall be in 12 accordance with section 321.124 . 13 b. (1) For a motor vehicle described in paragraph “a” 14 which is a hybrid vehicle or a mixed fuel vehicle, the annual 15 registration fee is the fee calculated pursuant to paragraph “a” 16 plus an additional sum of fifty dollars. 17 (2) For a motor vehicle described in paragraph “a” which 18 is an alternative fuel vehicle, a fuel cell vehicle, or a 19 plug-in electric vehicle, the annual registration fee is the 20 fee calculated pursuant to paragraph “a” plus an additional sum 21 of one hundred dollars. 22 c. Notwithstanding paragraphs “a” and “b” , for any new 23 vehicle purchased in this state by a nonresident for removal to 24 the nonresident’s state of residence, the purchaser may make 25 application to the county treasurer in the county of purchase 26 for a transit plate for which a fee of ten dollars shall be 27 paid. For any used vehicle held by a registered dealer and 28 not currently registered in this state, or for any vehicle 29 held by an individual and currently registered in this state, 30 when purchased in this state by a nonresident for removal to 31 the nonresident’s state of residence, the purchaser may make 32 application to the county treasurer in the county of purchase 33 for a transit plate for which a fee of three dollars shall 34 be paid. The county treasurer shall issue a nontransferable 35 -7- LSB 5429YC (9) 84 dea/nh 7/ 24

H.F. _____ certificate of registration for which no refund shall be 1 allowed; and the transit plates shall be void thirty days 2 after issuance. Such purchaser may apply for a certificate 3 of title by surrendering the manufacturer’s or importer’s 4 certificate or certificate of title, duly assigned as provided 5 in this chapter. In this event, the treasurer in the county 6 of purchase shall, when satisfied with the genuineness and 7 regularity of the application, and upon payment of a fee of 8 twenty dollars, issue a certificate of title in the name and 9 address of the nonresident purchaser delivering the title 10 to the owner. If there is a security interest noted on the 11 title, the county treasurer shall mail to the secured party an 12 acknowledgment of the notation of the security interest. The 13 county treasurer shall not release a security interest that 14 has been noted on a title issued to a nonresident purchaser 15 as provided in this paragraph. The application requirements 16 of section 321.20 apply to a title issued as provided in this 17 paragraph, except that a natural person who applies for a 18 certificate of title shall provide either the person’s social 19 security number, passport number, or driver’s license number, 20 whether the license was issued by this state, another state, 21 or another country. 22 b. d. The annual registration fee shall be sixty dollars 23 for a vehicle with permanently installed equipment manufactured 24 for and necessary to assist a person with a disability who is 25 either the owner or lessee of the vehicle or a member of the 26 owner’s or lessee’s household in entry and exit of the vehicle 27 or if the owner or lessee of the vehicle or a member of the 28 owner’s or lessee’s household uses a wheelchair as the only 29 means of mobility. This paragraph applies only to vehicles 30 that are otherwise subject to paragraph “a” and to motor trucks 31 with an unladen weight of ten thousand pounds or less that 32 are otherwise subject to section 321.122 . For purposes of 33 this paragraph, “uses a wheelchair” does not include use of a 34 wheelchair due to a temporary injury or medical condition. 35 -8- LSB 5429YC (9) 84 dea/nh 8/ 24

H.F. _____ Sec. 8. Section 321.113, subsections 2, 3, and 4, Code 1 Supplement 2011, are amended to read as follows: 2 2. If a motor vehicle is more than seven model years old, 3 the part of the annual registration fee that is based on the 4 value of the vehicle shall be seventy-five percent of the rate 5 as fixed when the motor vehicle was new and the total fee 6 shall not be less than fifty dollars plus the additional sum 7 required under section 321.109, subsection 1, paragraph “b” , if 8 applicable ; except that if the registration is a renewal for a 9 vehicle registered to the same owner prior to January 1, 2009, 10 the annual registration fee shall not be more than the fee paid 11 for the previous registration year. 12 3. If a motor vehicle is more than nine model years old, the 13 part of the annual registration fee that is based on the value 14 of the vehicle shall be fifty percent of the rate as fixed 15 when the motor vehicle was new and the total fee shall not be 16 less than fifty dollars plus the additional sum required under 17 section 321.109, subsection 1, paragraph “b” , if applicable ; 18 except that if the registration is a renewal for a vehicle 19 registered to the same owner prior to January 1, 2009, the 20 annual registration fee shall not be more than the fee paid for 21 the previous registration year. 22 4. a. Except as provided in paragraph “b” , if a motor 23 vehicle is twelve model years old or older, the annual 24 registration fee is fifty dollars plus the additional sum 25 required under section 321.109, subsection 1, paragraph “b” , if 26 applicable ; except that if the registration is a renewal for a 27 vehicle registered to the same owner prior to January 1, 2009, 28 the annual registration fee shall not be more than the fee paid 29 for the previous registration year. 30 b. If the registration is a renewal for a motor vehicle 31 registered as an antique vehicle by the same owner prior 32 to January 1, 2009, the annual registration fee shall be 33 twenty-three dollars for a motor vehicle that is model year 34 1970 through 1983 and sixteen dollars for a motor vehicle that 35 -9- LSB 5429YC (9) 84 dea/nh 9/ 24

H.F. _____ is model year 1969 or older. 1 c. For purposes of determining the portion of an annual 2 registration fee under paragraph “a” or “b” that is based upon 3 the value of the motor vehicle, sixty percent of the annual 4 registration fee is attributable to the value of the vehicle. 5 Sec. 9. Section 321.120, subsection 1, Code Supplement 6 2011, is amended to read as follows: 7 1. The annual registration fee for a business-trade truck 8 shall be determined pursuant to section 321.122, subsection 1 , 9 paragraph “a” , and subsection 2A . 10 Sec. 10. Section 321.121, subsection 1, paragraph a, Code 11 Supplement 2011, is amended to read as follows: 12 a. Except as otherwise provided in paragraph “b” this 13 section , the annual registration fee for a special truck with a 14 gross weight of six tons shall be one hundred dollars, and the 15 annual registration fee for a special truck with a gross weight 16 exceeding six tons but not exceeding eighteen tons shall be as 17 follows: 18 For a gross And not The annual 19 weight exceeding: registration 20 exceeding: fee shall be: 21 6 Tons . . . . . . . . . 7 Tons . . . . . . . $125 22 7 Tons . . . . . . . . . 8 Tons . . . . . . . $155 23 8 Tons . . . . . . . . . 9 Tons . . . . . . . $170 24 9 Tons . . . . . . . . . 10 Tons . . . . . . . $190 25 10 Tons . . . . . . . . . 11 Tons . . . . . . . $205 26 11 Tons . . . . . . . . . 12 Tons . . . . . . . $225 27 12 Tons . . . . . . . . . 13 Tons . . . . . . . $245 28 13 Tons . . . . . . . . . 14 Tons . . . . . . . $265 29 14 Tons . . . . . . . . . 15 Tons . . . . . . . $280 30 15 Tons . . . . . . . . . 16 Tons . . . . . . . $295 31 16 Tons . . . . . . . . . 17 Tons . . . . . . . $305 32 17 Tons . . . . . . . . . 18 Tons . . . . . . . $315 33 Sec. 11. Section 321.121, subsection 1, Code Supplement 34 2011, is amended by adding the following new paragraph: 35 -10- LSB 5429YC (9) 84 dea/nh 10/ 24

H.F. _____ NEW PARAGRAPH . e. (1) For a special truck which is a 1 hybrid vehicle or a mixed fuel vehicle, the annual registration 2 fee is the fee calculated pursuant to paragraph “a” , “b” , “c” , 3 or “d” plus an additional sum of fifty dollars. 4 (2) For a special truck which is an alternative fuel 5 vehicle, a fuel cell vehicle, or a plug-in electric vehicle, 6 the annual registration fee is the fee calculated pursuant to 7 paragraph “a” , “b” , “c” , or “d” plus an additional sum of one 8 hundred dollars. 9 Sec. 12. Section 321.122, subsection 1, unnumbered 10 paragraph 1, Code Supplement 2011, is amended to read as 11 follows: 12 The Except as provided in subsection 2A, the annual 13 registration fee for truck tractors, road tractors, and 14 motor trucks, except 2010 and subsequent model year motor 15 trucks required to be registered under section 321.109 and 16 motor trucks registered as special trucks, shall be based on 17 the combined gross weight of the vehicle or combination of 18 vehicles. All such trucks, truck tractors, or road tractors 19 registered under this section shall be registered for a gross 20 weight equal to or in excess of the unladen weight of the 21 vehicle or combination of vehicles. The annual registration 22 fee for such vehicles or combination of vehicles, except 23 special trucks, shall be the applicable fee under paragraph “a” 24 or “b” . 25 Sec. 13. Section 321.122, Code Supplement 2011, is amended 26 by adding the following new subsection: 27 NEW SUBSECTION . 2A. a. For a motor truck, truck tractor, 28 or road tractor described in subsection 1 or 2 which is a 29 hybrid vehicle or a mixed fuel vehicle, the annual registration 30 fee is the fee required under subsection 1 or 2 plus an 31 additional sum of fifty dollars. 32 b. For a motor truck, truck tractor, or road tractor 33 described in subsection 1 or 2 which is an alternative 34 fuel vehicle, a fuel cell vehicle, or a plug-in electric 35 -11- LSB 5429YC (9) 84 dea/nh 11/ 24

H.F. _____ vehicle, the annual registration fee is the fee required 1 under subsection 1 or 2 plus an additional sum of one hundred 2 dollars. 3 Sec. 14. Section 321.124, subsection 3, Code 2011, is 4 amended by adding the following new paragraph: 5 NEW PARAGRAPH . i. (1) For a motor home or multipurpose 6 vehicle which is a hybrid vehicle or a mixed fuel vehicle, the 7 annual registration fee is the fee required under paragraph “a” , 8 “b” , “c” , “d” , “e” , “f” , “g” , or “h” plus an additional sum of 9 fifty dollars. 10 (2) For a motor home or multipurpose vehicle which is an 11 alternative fuel vehicle, a fuel cell vehicle, or a plug-in 12 electric vehicle, the annual registration fee is the fee 13 required under paragraph “a” , “b” , “c” , “d” , “e” , “f” , “g” , or 14 “h” plus an additional sum of one hundred dollars. 15 Sec. 15. REPEAL. Section 321.116, Code 2011, is repealed. 16 Sec. 16. APPLICABILITY. This division of this Act applies 17 for registration years beginning on or after January 1, 2013. 18 DIVISION III 19 APPROPRIATIONS FOR OPERATIONAL COSTS 20 Sec. 17. Section 312.2, Code 2011, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 20. The treasurer of state, before making 23 the allotments provided for in this section, shall credit 24 annually from the road use tax fund to the TIME-21 fund 25 created in section 312A.2 the sum of three million seventy-nine 26 thousand dollars. 27 Sec. 18. Section 312.9, Code 2011, is amended to read as 28 follows: 29 312.9 Fund not for personnel expense certain expenses . 30 1. Moneys credited to the road use tax fund shall not 31 be appropriated for the payment of salaries, support, or 32 maintenance of any personnel in the department of public 33 safety. 34 2. Moneys credited to the road use tax fund shall not 35 -12- LSB 5429YC (9) 84 dea/nh 12/ 24

H.F. _____ be appropriated for operational costs of the department of 1 inspections and appeals, the department of management, the 2 department of revenue, or the treasurer of state. For purposes 3 of this section, “operational costs” means costs of salaries, 4 support, administrative expenses, or other personnel-related 5 costs. 6 Sec. 19. Section 452A.77, Code 2011, is amended to read as 7 follows: 8 452A.77 Moneys deposited in treasury —— refunds —— 9 administration. 10 1. All fees, taxes, interest, and penalties imposed 11 under this chapter must be paid to the department of revenue 12 or the state department of transportation, whichever is 13 responsible for the collection. The appropriate state 14 agency shall transmit each payment daily to the treasurer of 15 state. Such payments shall be deposited by the treasurer of 16 state in a fund, hereby created, within the state treasury 17 which shall be known as the “motor fuel tax fund” , the net 18 proceeds of which fund, after deductions by lawful transfers 19 and refunds, shall be known as the “motor vehicle fuel tax 20 fund” . The department of revenue and the state department of 21 transportation shall certify monthly to the director of the 22 department of administrative services amounts of refunds of tax 23 approved during each month, and the director of the department 24 of administrative services shall draw warrants in such amounts 25 on the motor fuel tax fund and transmit them. There is hereby 26 appropriated out of the money received under the provisions 27 of this chapter and deposited in the motor fuel tax fund 28 sufficient funds to pay such refunds as may be authorized in 29 this chapter . 30 2. The general assembly may shall appropriate from the 31 motor fuel tax general fund of the state such amounts as it 32 determines are necessary for administrative expenses of this 33 chapter . Allocations and transfers of fees, taxes, interest 34 and penalties imposed under this chapter , pursuant to any 35 -13- LSB 5429YC (9) 84 dea/nh 13/ 24

H.F. _____ provision of the Code, shall be made from the motor fuel tax 1 fund. 2 DIVISION IV 3 ROAD USE TAX FUND 4 Sec. 20. Section 312.2, subsection 6, Code 2011, is amended 5 to read as follows: 6 6. a. The treasurer of state, before making the allotments 7 provided for in this section , shall credit annually from the 8 road use tax fund to the living roadway trust TIME-21 fund 9 created under section 314.21 one section 312A.2 the sum of two 10 hundred fifty thousand dollars from the road use tax fund . 11 b. This subsection is repealed June 30, 2028. 12 Sec. 21. REPEAL. Section 312.2, subsection 8, Code 2011, 13 is repealed. 14 DIVISION V 15 MOTOR VEHICLE OPERATOR REGISTRATION FEES 16 Sec. 22. Section 312.1, subsection 1, Code 2011, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . f. Revenue derived from motor vehicle 19 operator registration fees under chapter 321. 20 Sec. 23. Section 321.145, subsection 2, unnumbered 21 paragraph 1, Code Supplement 2011, is amended to read as 22 follows: 23 Revenues derived from trailer registration fees collected 24 pursuant to sections 321.105 and 321.105A , fees charged for 25 driver’s licenses and nonoperator’s identification cards, 26 fees charged for the issuance of a certificate of title, the 27 certificate of title surcharge collected pursuant to section 28 321.52A , and revenues credited pursuant to section 423.43, 29 subsection 2 , and section 423C.5 shall be deposited in a fund 30 to be known as the statutory allocations fund under the control 31 of the department and credited as follows: 32 Sec. 24. Section 321.180B, subsection 2, paragraph a, Code 33 Supplement 2011, is amended to read as follows: 34 a. The department may issue an intermediate driver’s 35 -14- LSB 5429YC (9) 84 dea/nh 14/ 24

H.F. _____ license to a person sixteen or seventeen years of age who 1 possesses an instruction permit issued under subsection 1 or 2 a comparable instruction permit issued by another state for a 3 minimum of six months immediately preceding application, and 4 who presents an affidavit signed by a parent, guardian, or 5 custodian on a form to be provided by the department that the 6 permittee has accumulated a total of twenty hours of street 7 or highway driving of which two hours were conducted after 8 sunset and before sunrise and the street or highway driving was 9 with the permittee’s parent, guardian, custodian, instructor, 10 a person certified by the department, or a person at least 11 twenty-five years of age who had written permission from a 12 parent, guardian, or custodian to accompany the permittee, and 13 whose driving privileges have not been suspended, revoked, 14 or barred under this chapter or chapter 321J during, and who 15 has been accident and violation free continuously for, the 16 six-month period immediately preceding the application for an 17 intermediate license. An applicant for an intermediate license 18 must meet the requirements of section 321.186 , including 19 satisfactory completion of driver education as required in 20 section 321.178 , and payment of the required license fee before 21 an intermediate license will be issued. A person issued an 22 intermediate license must limit the number of passengers in the 23 motor vehicle when the intermediate licensee is operating the 24 motor vehicle to the number of passenger safety belts. 25 Sec. 25. Section 321.189, subsection 1, paragraph a, 26 unnumbered paragraph 1, Code 2011, is amended to read as 27 follows: 28 Upon payment of the required motor vehicle operator 29 registration fee, the department shall issue to every qualified 30 applicant a driver’s license. Driver’s licenses shall be 31 classified as follows: 32 Sec. 26. Section 321.189, subsection 3, Code 2011, is 33 amended to read as follows: 34 3. Replacement. If prior to the renewal date, a person 35 -15- LSB 5429YC (9) 84 dea/nh 15/ 24

H.F. _____ desires to obtain a driver’s license in the form authorized 1 by this section , a license may be issued as a voluntary 2 replacement upon payment of the required motor vehicle operator 3 registration fee as set by the department by rule. A person 4 shall return a driver’s license and be issued a new license 5 when the first license contains inaccurate information upon 6 payment of the required motor vehicle operator registration fee 7 as set by the department by rule. 8 Sec. 27. Section 321.189, subsection 6, Code 2011, is 9 amended to read as follows: 10 6. Licenses issued to persons under age twenty-one. A 11 driver’s license issued to a person under eighteen years 12 of age shall contain the same information as any other 13 driver’s license except that the words “under eighteen” shall 14 appear prominently on the face of the license. A driver’s 15 license issued to a person eighteen years of age or older 16 but less than twenty-one years of age shall contain the same 17 information as any other driver’s license except that the 18 words “under twenty-one” shall appear prominently on the 19 face of the license. Upon attaining the age of eighteen or 20 upon attaining the age of twenty-one, and upon payment of a 21 one dollar motor vehicle operator registration fee or a one 22 dollar administrative fee, the person shall be entitled to 23 a new driver’s license or nonoperator’s identification card 24 for the unexpired months of the driver’s license or card. An 25 instruction permit or intermediate license issued under section 26 321.180B, subsection 1 or 2, shall include a distinctive color 27 bar. An intermediate license issued under section 321.180B, 28 subsection 2 , shall include the words “intermediate license” 29 printed prominently on the face of the license. 30 Sec. 28. Section 321.191, Code 2011, is amended by adding 31 the following new unnumbered paragraph: 32 NEW UNNUMBERED PARAGRAPH . Licenses and permits to operate 33 a motor vehicle shall be subject to motor vehicle operator 34 registration fees as follows: 35 -16- LSB 5429YC (9) 84 dea/nh 16/ 24

H.F. _____ Sec. 29. Section 321.195, Code 2011, is amended to read as 1 follows: 2 321.195 Duplicate driver’s licenses and nonoperator’s 3 identification cards. 4 If a driver’s license or nonoperator’s identification card 5 issued under this chapter is lost or destroyed, the person to 6 whom the license or card was issued may, upon payment of a 7 motor vehicle operator registration fee of three dollars for a 8 driver’s license or a fee of three dollars for a nonoperator’s 9 identification card, obtain a duplicate, or substitute, upon 10 furnishing proof satisfactory to the department that the 11 driver’s license or nonoperator’s identification card has been 12 lost or destroyed. A motor vehicle operator registration fee 13 of one dollar shall be charged for voluntary replacement of 14 a driver’s license and a fee of one dollar shall be charged 15 for the voluntary replacement of a driver’s license or 16 nonoperator’s identification card. 17 Sec. 30. Section 321.208, subsection 13, Code 2011, is 18 amended to read as follows: 19 13. Upon notice, the disqualified person shall surrender 20 the person’s commercial driver’s license to the department 21 and the department may issue a driver’s license valid only to 22 operate a noncommercial motor vehicle upon payment of a one 23 dollar motor vehicle operator registration fee. The department 24 shall notify the commercial driver’s license information system 25 of the disqualification if required to do so under section 26 321.204 . 27 DIVISION VI 28 MOTOR FUEL TAX 29 Sec. 31. Section 312.2, Code 2011, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 21. a. The treasurer of state, before 32 making the allotments provided for in this section, shall 33 credit monthly from the road use tax fund to the TIME-21 fund 34 created in section 312A.2 the revenue accruing to the road use 35 -17- LSB 5429YC (9) 84 dea/nh 17/ 24