Senate File 371 - Reprinted SENATE FILE 371 BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SF 237) (As Amended and Passed by the Senate April 2, 2013 ) A BILL FOR An Act providing for special vehicle registration plates 1 displaying a decal designed and issued by a nonprofit 2 organization, providing fees, making a penalty applicable, 3 and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 SF 371 (2) 85 dea/nh/jh

S.F. 371 Section 1. Section 321.34, subsection 13, Code 2013, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 13. Special plates displaying organization decal. 4 a. (1) The owner of a motor vehicle subject to registration 5 pursuant to section 321.109, subsection 1, motor truck, motor 6 home, multipurpose vehicle, motorcycle, trailer, or travel 7 trailer may upon request be issued special registration 8 plates that contain a space reserved for the placement of an 9 organization decal. If the special plates are requested at the 10 time of initial application for registration and certificate 11 of title for the vehicle, no special plate fee is required 12 other than the regular annual registration fee for the vehicle. 13 If the special plates are requested as replacement plates, 14 the owner shall surrender the current regular or special 15 registration plates in exchange for the special plates and 16 shall pay a replacement plate fee of five dollars. The county 17 treasurer shall validate special plates with an organization 18 decal in the same manner as regular plates, upon payment of the 19 annual registration fee. 20 (2) An applicant may obtain a personalized special 21 registration plate with space reserved for an organization 22 decal, subject to the additional fees for a personalized plate 23 as provided in subsection 5. Personalized plates with space 24 reserved for an organization decal shall be limited to no more 25 than five initials, letters, or combinations of numerals and 26 letters. 27 b. (1) An organization may apply to the department 28 for approval to issue a decal to be displayed on vehicle 29 registration plates. To qualify for such approval, an 30 organization must have at least two hundred members in this 31 state and shall meet the following requirements: 32 (a) The primary activity or interest of the organization 33 serves the community, contributes to the welfare of others, 34 and is not discriminatory in its purpose, nature, activity, or 35 -1- SF 371 (2) 85 dea/nh/jh 1/ 3

S.F. 371 name. 1 (b) The name and purpose of the organization do not promote 2 any specific product or brand name that is provided for sale. 3 (c) The organization is a nonprofit corporation which is 4 exempt from taxation under section 501(c)(3) of the Internal 5 Revenue Code and is organized under the laws of this state or 6 authorized to do business within this state. 7 (2) The department may accept an application for a decal 8 design from a group of nonprofit organizations with a common 9 purpose, provided that each organization within the group meets 10 the requirements for a qualifying organization established by 11 the department under this subsection. 12 c. An organization desiring to issue a decal shall submit an 13 application to the department on a form to be provided by the 14 department. Along with the application, the organization shall 15 furnish to the department all of the following: 16 (1) A copy of the articles of incorporation for the 17 organization. 18 (2) A copy of the charter or by-laws for the organization. 19 (3) Any Internal Revenue Service rulings concerning the 20 organization’s nonprofit tax exemption status. 21 (4) A color copy of the completed decal design. 22 (5) A clear and concise explanation of the purpose of the 23 decal, all eligibility requirements for purchasing the decal, 24 and fees to be charged for the decal. 25 (6) Certification by the person who has legal rights to the 26 decal design allowing use of the design. 27 (7) Any other information required by the department. 28 d. The department shall consider a proposed decal design 29 based upon criteria established by the department. 30 e. Upon approval by the department of an organization’s 31 application to issue a decal and approval of the design of the 32 decal, the organization is responsible for the production, 33 administration, and issuance of the decal. An organization 34 shall not issue a decal that has not been approved by the 35 -2- SF 371 (2) 85 dea/nh/jh 2/ 3

S.F. 371 department or alter the approved design of a decal without the 1 department’s approval. 2 f. A person shall not display a decal on a vehicle 3 registration plate other than a decal approved by the 4 department. 5 g. The department may adopt rules pursuant to chapter 17A as 6 necessary to implement this subsection. 7 h. Special registration plates with a processed emblem that 8 were approved and in production prior to the effective date of 9 this Act shall continue to be issued according to the terms of 10 the law under which those plates were authorized. 11 Sec. 2. Section 321.166, subsection 9, Code 2013, is amended 12 to read as follows: 13 9. Special registration plates issued pursuant to section 14 321.34 , other than gold star, medal of honor, collegiate, fire 15 fighter, and natural resources registration plates, shall be 16 consistent with the design and color of regular registration 17 plates but shall provide a space on a portion of the plate 18 for the purpose of allowing the placement of a distinguishing 19 processed emblem or an organization decal . Special 20 registration plates shall also comply with the requirements 21 for regular registration plates as provided in this section to 22 the extent the requirements are consistent with the section 23 authorizing a particular special vehicle registration plate. 24 Sec. 3. EFFECTIVE DATE. This Act takes effect January 1, 25 2014. 26 -3- SF 371 (2) 85 dea/nh/jh 3/ 3