S.F. 36 Section 1. Section 35A.11, subsection 2, paragraph h, Code 1 2025, is amended to read as follows: 2 h. Combat infantryman badge, combat action badge, combat 3 action ribbon, air force combat action medal, and combat 4 medical badge plates decals issued pursuant to section 321.34, 5 subsection 20C . 6 Sec. 2. Section 321.34, subsection 13, paragraph b, 7 subparagraph (1), subparagraph division (c), Code 2025, is 8 amended to read as follows: 9 (c) The organization is a nonprofit corporation which is 10 exempt from federal income taxation under section 501(c)(3) or 11 501(c)(19) of the Internal Revenue Code and is organized under 12 the laws of this state or authorized to do business within this 13 state. 14 Sec. 3. Section 321.34, subsection 13, paragraph f, Code 15 2025, is amended to read as follows: 16 f. A person shall not display a decal on a vehicle 17 registration plate other than a decal approved or issued by the 18 department. 19 Sec. 4. Section 321.34, subsection 20C, Code 2025, is 20 amended to read as follows: 21 20C. Combat infantryman badge, combat action badge, combat 22 action ribbon, air force combat action medal, and combat medical 23 badge plates decals . 24 a. The department, in consultation with the adjutant 25 general, shall design separate and distinct decals representing 26 a combat infantryman badge, combat action badge, combat action 27 ribbon, air force combat action medal, and combat medical badge 28 distinguishing processed emblems . Upon receipt of two hundred 29 fifty orders for combat infantryman badge, combat action badge, 30 combat action ribbon, air force combat action medal, or combat 31 medical badge special registration plates, accompanied by a 32 start-up fee of twenty dollars per order, the department shall 33 begin issuing special registration plates with the applicable 34 distinguishing processed emblem as provided in paragraphs 35 -1- LSB 1099XS (3) 91 th/ns 1/ 5

S.F. 36 “b” , “c” , and “d” . The minimum order requirement shall apply 1 separately to each of the special registration plates created 2 under this subsection . The decals shall be designed to be 3 displayed on special plates issued under subsection 13. 4 b. An owner referred to in subsection 12 who was awarded a 5 combat infantryman badge, combat action badge, combat action 6 ribbon, air force combat action medal, or combat medical badge 7 by the United States government may, upon written application 8 to the department and presentation of satisfactory proof of 9 the award, order special registration plates with two decals 10 representing a combat infantryman badge, combat action badge, 11 combat action ribbon, air force combat action medal, or 12 combat medical badge processed emblem. The special plate fees 13 collected by the director under subsection 12 , paragraph “a” , 14 from the annual validation of letter-number designated combat 15 infantryman badge, combat action badge, combat action ribbon, 16 air force combat action medal, and combat medical badge plates, 17 and subsection 12 , paragraph “c” , from the issuance and annual 18 validation of personalized combat infantryman badge, combat 19 action badge, combat action ribbon, air force combat action 20 medal, and combat medical badge plates fee for each pair of 21 decals is ten dollars, and all such fees collected under this 22 subsection shall be paid monthly to the treasurer of state and 23 deposited in the road use tax fund. The treasurer of state 24 shall transfer monthly from the statutory allocations fund 25 created under section 321.145, subsection 2 , to the veterans 26 license fee fund created in section 35A.11 the amount of the 27 special fees collected under this subsection 12, paragraph “a” , 28 in the previous month for combat infantryman badge, combat 29 action badge, combat action ribbon, air force combat action 30 medal, and combat medical badge plates decals . 31 c. Notwithstanding subsection 12 , paragraph “a” , an owner 32 who is approved for special registration plates under this 33 subsection shall be issued one set of special registration 34 plates with a combat infantryman badge, combat action badge, 35 -2- LSB 1099XS (3) 91 th/ns 2/ 5

S.F. 36 combat action ribbon, air force combat action medal, or combat 1 medical badge distinguishing processed emblem at no charge. 2 d. c. The surviving spouse of a person who was issued 3 special plates decals under this subsection may continue to 4 use or apply for and use the special plates decals affixed to 5 the plates issued under subsection 13 subject to registration 6 of the special plates in the surviving spouse’s name and 7 upon payment of the annual five-dollar special plate fee and 8 the regular annual registration fee for the vehicle. If the 9 surviving spouse remarries, the surviving spouse shall either 10 remove and dispose of the decals or return the special plates 11 with the decals affixed to the department and the department 12 shall issue regular registration plates to the surviving 13 spouse. 14 Sec. 5. DEPARTMENT TO MAKE ACCOMMODATIONS. For special 15 registration plate applications received by the department of 16 transportation under section 321.34, subsection 20C, Code 2025, 17 prior to July 1, 2025, the department shall make reasonable 18 efforts to contact the applicants to inform the applicants 19 of the decals authorized by this Act. The department shall 20 give the applicant the option to be refunded the twenty-dollar 21 start-up fee for combat infantryman badge, combat action badge, 22 combat action ribbon, air force combat action medal, or combat 23 medical badge special registration plates paid by the applicant 24 prior to July 1, 2025, or to be refunded ten dollars of the 25 original start-up fee and be issued a special plate under 26 section 321.34, subsection 13, along with the applicable decals 27 authorized by this Act, if the applicant is eligible to be 28 issued the decals. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 Under current law, the department of transportation (DOT) 33 is authorized to issue special registration plates with a 34 space to display an organization decal. The DOT does not 35 -3- LSB 1099XS (3) 91 th/ns 3/ 5

S.F. 36 issue the organization decal. Instead, the organization is 1 responsible for producing, administering, and issuing the 2 decal. An organization must submit an application to the DOT 3 for approval to issue a decal. An application must include 4 proof of eligibility to issue the decal, a color copy of the 5 completed decal design, a clear and concise explanation of 6 the purpose of the decal, all eligibility requirements for 7 purchasing the decal, and the fees to be charged for the decal. 8 To qualify for approval, the primary activity or interest 9 of the organization must serve the community, contribute to 10 the welfare of others, and cannot be discriminatory in its 11 purpose, nature, activity, or name; the name and purpose of the 12 organization cannot promote any specific product or brand name 13 that is provided for sale; and the organization is required to 14 be a nonprofit corporation which is exempt from taxation under 15 section 501(c)(3) of the Internal Revenue Code and organized 16 under Iowa’s laws or authorized to do business within Iowa. 17 This bill authorizes an organization which is exempt under 18 section 501(c)(19) of the Internal Revenue Code to apply 19 for approval to issue an organization decal. To be exempt 20 under section 501(c)(19), an organization must be a post or 21 organization of past or present members of the United States 22 armed forces, an auxiliary unit or society of such post 23 or organization, or a trust or foundation for such post or 24 organization. 25 In 2011, the general assembly authorized the DOT, in 26 consultation with the adjutant general, to design combat 27 infantryman badge, combat action badge, combat action ribbon, 28 air force combat action medal, and combat medical badge 29 distinguishing processed emblem special registration plates. 30 However, the DOT is required to receive 250 orders, including 31 a start-up fee, for each plate before the DOT can produce or 32 issue any of the registration plates. The bill strikes the 33 provisions relating to the special registration plates and 34 minimum order requirements and instead requires the DOT to 35 -4- LSB 1099XS (3) 91 th/ns 4/ 5

S.F. 36 design and issue separate and distinct decals representing the 1 applicable badges, ribbons, and medals. The decals must be 2 designed to be displayed on registration plates issued under 3 Code section 321.34(13) (plates with space reserved for a 4 decal). 5 The DOT must issue two decals to an approved applicant and 6 the fee for a pair of decals is $10. The fee is deposited into 7 the road use tax fund and, each month, the treasurer of state 8 must transfer from the statutory allocations fund the amount 9 of fees received under the bill to the veterans license fee 10 fund. The bill makes corresponding changes to Code sections 11 35A.11(2)(h) and 321.34(20C). 12 The DOT is required to make reasonable efforts to contact 13 applicants who previously applied for and paid the required 14 start-up fee. An applicant is eligible to receive a refund of 15 the $20 fee, or receive a refund of $10 plus the applicable 16 decals and plates as provided in the bill. 17 -5- LSB 1099XS (3) 91 th/ns 5/ 5