SF 90 (LSB 1278XS (5) 90)

SENATE FILE 90

BY  SALMON

A BILL FOR

An Act relating to special registration plates for motor vehicles, including plates displaying a decal approved by the department of veterans affairs or a decal of a nonprofit veterans’ organization.
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 13, Code 2023, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0g.  The department of veterans affairs may approve a decal representing any service ribbon or badge awarded to a member of the armed forces of the United States. A decal approved by the department of veterans affairs shall be produced, and issued by the department of transportation for display on registration plates as described in this subsection. The department of veterans affairs may adopt rules pursuant to chapter 17A as necessary to implement this paragraph.
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.
   The bill also authorizes the department of veterans affairs to approve a decal representing any recognized military ribbon or badge. The DOT is then responsible for producing and issuing such decals.