Bill Text: IA SF564 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act relating to motor vehicle special registration plate decals created by a nonprofit veterans' organization or associated with military service.(Formerly SF 224, SF 90; See SF 2415.)

Spectrum: Committee Bill

Status: (Introduced) 2024-03-21 - Committee report approving bill, renumbered as SF 2415. S.J. 615. [SF564 Detail]

Download: Iowa-2023-SF564-Introduced.html

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Senate File 564 - Introduced
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:
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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
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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
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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
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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
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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.
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