SF 564 (LSB 1278SZ (1) 90)

SENATE FILE 564

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 224)
(SUCCESSOR TO SF 90)

A BILL FOR

An Act relating to motor vehicle special registration plate decals created by a nonprofit veterans’ organization or associated with military service.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.34, subsection 13, paragraph b, subparagraph (1), subparagraph division (c), Code 2023, is amended to read as follows:
   (c)  The organization is a nonprofit corporation which is exempt from federal income taxation under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code and is organized under the laws of this state or authorized to do business within this state.
    Sec. 2.  Section 321.34, subsection 13, paragraph f, Code 2023, is amended to read as follows:
   f.  A person shall not display a decal on a vehicle registration plate other than a decal approved or issued by the department.
    Sec. 3.  Section 321.34, subsection 20C, Code 2023, is amended to read as follows:
   20C.  Combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates decals.
   a.  The department, in consultation with the adjutant general, shall design separate and distinct decals representing a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge distinguishing processed emblems. Upon receipt of two hundred fifty orders for combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge special registration plates, accompanied by a start-up fee of twenty dollars per order, the department shall begin issuing special registration plates with the applicable distinguishing processed emblem as provided in paragraphs “b”, “c”, and “d”. The minimum order requirement shall apply separately to each of the special registration plates created under this subsection.  The decals shall be designed to be displayed on special plates issued under subsection 13.
   b.  An owner referred to in subsection 12 who was awarded a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge by the United States government may, upon written application to the department and presentation of satisfactory proof of the award, order special registration plates with two decals representing a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge processed emblem. The special plate fees collected by the director under subsection 12, paragraph “a”, from the annual validation of letter-number designated combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates fee for each pair of decals is ten dollars, and all such fees collected under this subsection shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under this subsection 12, paragraph “a”, in the previous month for combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates decals.
   c.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge distinguishing processed emblem at no charge.
   d.  The surviving spouse of a person who was issued special plates decals under this subsection may continue to use or apply for and use the special plates decals affixed to the plates issued under subsection 13 subject to registration of the special plates in the surviving spouse’s name and upon payment of the annual five-dollar special plate fee and the regular annual registration fee for the vehicle. If the surviving spouse remarries, the surviving spouse shall either remove and dispose of the decals or return the special plates with the decals affixed to the department and the department shall issue regular registration plates to the surviving spouse.
    Sec. 4.  DEPARTMENT TO MAKE ACCOMMODATIONS.  For special registration plate applications received by the department of transportation under section 321.34, subsection 20C, Code 2023, prior to July 1, 2023, the department shall make reasonable efforts to contact the applicants to inform the applicants of the decals authorized by this Act. The department shall give the applicant the option to be refunded the twenty-dollar start-up fee for combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge special registration plates paid by the applicant prior to July 1, 2023, or to be refunded ten dollars of the original start-up fee and be issued a special plate under section 321.34, subsection 13, along with the applicable decals authorized by this Act, if the applicant is eligible to be issued the decals.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the department of transportation (DOT) is authorized to issue special registration plates with a space to display an organization decal. The DOT does not issue the organization decal. Instead, the organization is responsible for producing, administering, and issuing the decal.
   An organization must submit an application to the DOT for approval to issue a decal. An application must include proof of eligibility to issue the decal, a color copy of the completed decal design, a clear and concise explanation of the purpose of the decal, all eligibility requirements for purchasing the decal, and the fees to be charged for the decal. To qualify for approval, the primary activity or interest of the organization must serve the community, contribute to the welfare of others, and cannot be discriminatory in its purpose, nature, activity, or name; the name and purpose of the organization cannot promote any specific product or brand name that is provided for sale; and the organization is required to be a nonprofit corporation which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code and organized under Iowa’s laws or authorized to do business within Iowa.
   This bill also authorizes an organization which is exempt under section 501(c)(19) of the Internal Revenue Code to apply for approval to issue an organization decal. To be exempt under section 501(c)(19), an organization must be a post or organization of past or present members of the United States armed forces, an auxiliary unit or society of such post or organization, or a trust or foundation for such post or organization.
   In 2011, the general assembly authorized the DOT, in consultation with the adjutant general, to design combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge distinguishing processed emblem special registration plates. However, the DOT is required to receive 250 orders, including a start-up fee, for each plate before the DOT can produce or issue any of the registration plates. The bill strikes the provisions relating to the special registration plates and minimum order requirements and instead requires the DOT to design and issue separate and distinct decals representing the applicable badges, ribbons, and medals. The decals must be designed to be displayed on registration plates issued under Code section 321.34(13) (plates with space reserved for a decal).
   The DOT must issue two decals to an approved applicant and the fee for a pair of decals is $10. The fee is deposited into the road use tax fund and, each month, the treasurer of state must transfer from the statutory allocations fund the amount of fees received under the bill to the veterans license fee fund. The bill makes corresponding changes to Code section 321.34(20C).
   The DOT is required to make reasonable efforts to contact applicants who previously applied for and paid the required start-up fee. An applicant is eligible to receive a refund of the $20 fee, or receive a refund of $10 plus the applicable decals and plates as provided in the bill.