HF 617 (LSB 1775HZ (1) 86)

HOUSE FILE 617

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 245)
(SUCCESSOR TO HF 93)

A BILL FOR

An Act providing for special vehicle registration plates displaying a decal designed and issued by a nonprofit organization, providing fees, making a penalty applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.34, subsection 13, Code 2015, is amended by striking the subsection and inserting in lieu thereof the following:
   13.  Special plates displaying organization decal.
   a.  (1)  The owner of a motor vehicle subject to registration pursuant to section 321.109, subsection 1, motor truck, motor home, multipurpose vehicle, motorcycle, trailer, or travel trailer may upon request be issued special registration plates that contain a space reserved for the placement of an organization decal. If the special plates are requested at the time of initial application for registration and certificate of title for the vehicle, no special plate fee is required other than the regular annual registration fee for the vehicle. If the special plates are requested as replacement plates, the owner shall surrender the current regular or special registration plates in exchange for the special plates and shall pay a replacement plate fee of five dollars. The county treasurer shall validate special plates with an organization decal in the same manner as regular plates, upon payment of the annual registration fee.
   (2)  An applicant may obtain a personalized special registration plate with space reserved for an organization decal, subject to the additional fees for a personalized plate as provided in subsection 5. Personalized plates with space reserved for an organization decal shall be limited to no more than five initials, letters, or combinations of numerals and letters.
   b.  (1)  An organization may apply to the department for approval to issue a decal to be displayed on vehicle registration plates. To qualify for such approval, an organization must have at least two hundred members in this state and shall meet the following requirements:
   (a)  The primary activity or interest of the organization serves the community, contributes to the welfare of others, and is not discriminatory in its purpose, nature, activity, or name.
   (b)  The name and purpose of the organization do not promote any specific product or brand name that is provided for sale.
   (c)  The organization is a nonprofit corporation which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code and is organized under the laws of this state or authorized to do business within this state.
   (2)  The department may accept an application for a decal design from a group of nonprofit organizations with a common purpose, provided that each organization within the group meets the requirements for a qualifying organization established by the department under this subsection.
   c.  An organization desiring to issue a decal shall submit an application to the department on a form to be provided by the department. Along with the application, the organization shall furnish to the department all of the following:
   (1)  A copy of the articles of incorporation for the organization.
   (2)  A copy of the charter or by-laws for the organization.
   (3)  Any Internal Revenue Service rulings concerning the organization’s nonprofit tax exemption status.
   (4)  A color copy of the completed decal design.
   (5)  A clear and concise explanation of the purpose of the decal, all eligibility requirements for purchasing the decal, and fees to be charged for the decal.
   (6)  Certification by the person who has legal rights to the decal design allowing use of the design.
   (7)  Any other information required by the department.
   d.  The department shall consider a proposed decal design based upon criteria established by the department, which shall include but not be limited to the following:
   (1)  A decal shall not promote a specific religion, faith, or anti-religious sentiment.
   (2)  A decal shall not have any sexual connotation and shall not be vulgar, prejudiced, hostile, insulting, or racially or ethnically degrading.
   e.  Upon approval by the department of an organization’s application to issue a decal and approval of the design of the decal, the organization is responsible for the production, administration, and issuance of the decal. An organization shall not issue a decal that has not been approved by the department or alter the approved design of a decal without the department’s approval.
   f.  A person shall not display a decal on a vehicle registration plate other than a decal approved by the department.
   g.  The department may adopt rules pursuant to chapter 17A as necessary to implement this subsection.
    Sec. 2.  Section 321.166, subsection 9, Code 2015, is amended to read as follows:
   9.  Special registration plates issued pursuant to section 321.34, other than gold star, medal of honor, collegiate, fire fighter, and natural resources registration plates, shall be consistent with the design and color of regular registration plates but shall provide a space on a portion of the plate for the purpose of allowing the placement of a distinguishing processed emblem or an organization decal. Special registration plates shall also comply with the requirements for regular registration plates as provided in this section to the extent the requirements are consistent with the section authorizing a particular special vehicle registration plate.
    Sec. 3.  EFFECTIVE DATE.  This Act takes effect January 1, 2016.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides for the issuance of special vehicle registration plates containing a space for the placement of an organization decal and provides a process for the approval of registration plate decals to be issued by qualifying organizations.
   Under current law, anyone may submit a request to the department of transportation for approval of a new special registration plate with a processed emblem. If the department approves the request and the design of the proposed emblem, a minimum of 500 paid applications are required before the department begins issuing the plate. The department may cancel its approval if sufficient applications are not received within one year. A vehicle owner is charged a fee of $25 for the issuance of the special plates, and an annual $5 validation fee for renewal. Those fees are deposited in the road use tax fund. An alternative process allows for a state agency to sponsor a special registration plate, with fees of $35 for issuance and $10 for renewal. Those fees are credited to the sponsoring state agency.
   The bill eliminates the current process for a person to request a new special plate and eliminates state agency sponsorship of new special plates. Under the bill, the department will begin issuing special registration plates with a space reserved for placement of an organization decal to be designed, produced, and issued by a qualifying organization, rather than the department. The plates will be available without an additional special plate fee at the time of initial registration of a vehicle, and will be renewed annually upon payment of the regular annual registration fee for the vehicle. A $5 replacement fee applies if the plates are issued in exchange for regular or special plates. The new plates will also be available as personalized plates upon payment of personalized plate fees.
   A qualifying organization must be a nonprofit corporation with at least 200 members, whose primary activity or interest serves the community, contributes to the welfare of others, and is not discriminatory. A group of such organizations with a common purpose may also be approved to issue a decal. The bill specifies that organizations that promote a specific product or brand name are not eligible to issue organization decals. An organization desiring to issue a decal must apply to the department for approval by submitting information concerning its nonprofit corporation identity along with a copy of the proposed decal design, certification of legal rights to use the design, and an explanation of the purpose of the decal, eligibility requirements, and fees the organization will charge for the decal. The department may establish criteria for decal designs, including that a decal shall not promote a specific religion, faith, or anti-religious sentiment, shall not have any sexual connotation, and shall not be vulgar, prejudiced, hostile, insulting, or racially or ethnically degrading. If the department approves the application, the organization is responsible for the production, administration, and issuance of the decal, and any fees charged by the organization for the decals will be retained by the organization.
   The bill prohibits any organization from issuing a decal without the approval of the department. The bill also prohibits a person from displaying a decal other than an approved decal on a vehicle registration plate. Pursuant to current law, a person who violates Code provisions relating to vehicle registration plates commits a simple misdemeanor punishable by a scheduled fine of $20.
   The bill takes effect January 1, 2016.