BILL REQ. #:  S-0874.1 

Read first time 01/24/2003.   Referred to Committee on Highways & Transportation.

     AN ACT Relating to special license plates; amending RCW 46.16.233 and 46.16.314; adding new sections to chapter 46.16 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature has seen an increase in the demand from constituent groups seeking recognition and funding through the establishment of commemorative or special license plates. The high cost of implementing a new special license plate series coupled with the uncertainty of the state's ability to recoup its costs, has led the legislature to delay the implementation of new special license plates. In order to address these issues, it is the intent of the legislature to create a mechanism that will allow for the evaluation of special license plate requests and establish a funding policy that will alleviate the financial burden currently placed on the state. Using these two strategies, the legislature will be better equipped to efficiently process special license plate legislation.

NEW SECTION.  Sec. 101   A new section is added to chapter 46.16 RCW to read as follows:
     SPECIAL LICENSE PLATE REVIEW BOARD CREATED. (1) The special license plate review board is created.
     (2) The board will consist of seven members: One member appointed by the governor and who will serve as chair of the board; four members of the legislature, one from each caucus of the house of representatives and the senate; a department of licensing representative appointed by the director; and a Washington state patrol representative appointed by the chief.
     (3) Members shall serve terms of four years, except that four of the members initially appointed will be appointed for terms of two years. No member may be appointed for more than three consecutive terms.
     (4) The legislative transportation committee may remove members from the board before the expiration of their terms only for cause based upon a determination of incapacity, incompetence, neglect of duty, or malfeasance in office as ordered by the Thurston county superior court, upon petition and show cause proceedings brought for that purpose in that court and directed to the board member in question.

NEW SECTION.  Sec. 102   A new section is added to chapter 46.16 RCW to read as follows:
     ADMINISTRATION OF THE BOARD. (1) The board shall meet periodically at the call of the chair, but must meet at least one time each year within ninety days before an upcoming regular session of the legislature. The board may adopt its own rules and may establish its own procedures. It shall act collectively in harmony with recorded resolutions or motions adopted by a majority vote of the members, and it must have a quorum present to take a vote on a special license plate application.
     (2) The board will be compensated from the general appropriation for the legislative transportation committee in accordance with RCW 43.03.250. Each board member will be compensated in accordance with RCW 43.03.250 and reimbursed for actual necessary traveling and other expenses in going to, attending, and returning from meetings of the board or that are incurred in the discharge of duties requested by the chair. However, in no event may a board member be compensated in any year for more than one hundred twenty days, except the chair may be compensated for not more than one hundred fifty days. Service on the board does not qualify as a service credit for the purposes of a public retirement system.
     (3) The board shall keep proper records and is subject to audit by the state auditor or other auditing entities.
     (4) The department of licensing shall provide administrative support to the board, which must include at least the following:
     (a) Provide general staffing to meet the administrative needs of the board;
     (b) Report to the board on the reimbursement status of any new special license plate series for which the state had to pay the start-up costs;
     (c) Process special license plate applications and confirm that the sponsoring organization has submitted all required documentation. If an incomplete application is received, the department must return it to the sponsoring organization;
     (d) Compile the annual financial reports submitted by sponsoring organizations with active special license plate series and present those reports to the board for review and approval.
     (5) The legislative transportation committee will provide general oversight of the board, which must include at least the following:
     (a) Process and approve board member compensation requests;
     (b) Review the annual financial reports submitted to the board by sponsoring organizations;
     (c) Review annually the list of the board's approved and rejected special license plate proposals submitted by sponsoring organizations.

NEW SECTION.  Sec. 103   A new section is added to chapter 46.16 RCW to read as follows:
     AUTHORITY AND RESPONSIBILITIES OF THE BOARD. (1) The creation of the board does not in any way preclude the authority of the legislature to independently propose and enact special license plate legislation.
     (2) The board must review and either approve or reject special license plate applications submitted by sponsoring organizations.
     (3) Responsibilities of the board include but are not limited to the following:
     (a) Review and approve the annual financial reports submitted by sponsoring organizations with active special license plate series and present those annual financial reports to the legislative transportation committee;
     (b) Report annually to the legislative transportation committee on the special license plate applications that were considered by the board;
     (c) Issue approval and rejection notification letters to sponsoring organizations, the department, and the legislative sponsors identified in each application. The letters must be issued within seven days of making a determination on the status of an application.

NEW SECTION.  Sec. 201   A new section is added to chapter 46.16 RCW to read as follows:
     ELIGIBILITY REQUIREMENTS. (1) For an organization to qualify for a special license plate under the special license plate approval program created in sections 101 through 303 of this act, the sponsoring organization must submit documentation in conjunction with the application to the department that verifies:
     (a) That the organization is a nonprofit organization, as defined in 26 U.S.C. Sec. 501(c)(3). The department may request a copy of an Internal Revenue Service ruling to verify an organization's nonprofit status; and
     (b) That the organization is located in Washington and has registered as a charitable organization with the secretary of state's office as required by law.
     (2) For a governmental body to qualify for a special license plate under the special license plate approval program created in sections 101 through 303 of this act, a governmental body must be:
     (a) A political subdivision, including but not limited to any county, city, town, municipal corporation, or special purpose taxing district that has the express permission of the political subdivision's executive body to sponsor a special license plate;
     (b) A federally recognized tribal government that has received the approval of the executive body of that government to sponsor a special license plate;
     (c) A state agency that has both received approval from the director of the agency or the department head, and has the express statutory authority to sponsor a special license plate; or
     (d) A community or technical college that has the express permission of the college's board of trustees to sponsor a special license plate.

NEW SECTION.  Sec. 301   A new section is added to chapter 46.16 RCW to read as follows:
     APPLICATION REQUIREMENTS. (1) A sponsoring organization meeting the requirements of section 201 of this act, applying for the creation of a special license plate to the special license plate review board must, on an application supplied by the department, provide the minimum application requirements in subsection (2) of this section. If the sponsoring organization cannot meet the payment requirements of subsection (2) of this section, then the organization must meet the requirements of subsection (3) of this section.
     (2) The sponsoring organization shall:
     (a) Submit prepayment of all start-up costs associated with the creation and implementation of the special license plate in an amount determined by the department. The department shall place this money into the special license plate applicant trust account created under section 302(3) of this act until the special license plate receives legislative approval. If the special license plate does not receive legislative approval the money must be fully refunded within thirty days. The organization may withdraw the application at any time and receive a full refund of the money within thirty days;
     (b) Provide a proposed license plate design;
     (c) Provide a marketing strategy outlining short and long-term marketing plans for the special license plate and a financial analysis outlining the anticipated revenue and the planned expenditures of the revenues derived from the sale of the special license plate;
     (d) Provide a signature of a legislative sponsor and proposed legislation creating the special license plate; and
     (e) Provide proof of organizational qualifications as determined by the department as provided for in section 201 of this act.
     (3) If the sponsoring organization is not able to meet the payment requirements of subsection (2)(a) of this section and can demonstrate this fact to the satisfaction of the department, the sponsoring organization shall:
     (a) Submit an application and fee of one hundred dollars, for deposit in the motor vehicle account, to the department;
     (b) Provide signature sheets that include signatures from individuals who intend to purchase the special license plate and the number of plates each individual intends to purchase. The sheets must reflect a minimum of two thousand intended purchases of the special license plate;
     (c) Provide a proposed license plate design;
     (d) Provide a marketing strategy outlining short and long-term marketing plans for the special license plate and a financial analysis outlining the anticipated revenue and the planned expenditures of the revenues derived from the sale of the special license plate;
     (e) Provide a signature of a legislative sponsor and proposed legislation creating the special license plate; and
     (f) Provide proof of organizational qualifications as determined by the department as provided in section 201 of this act.

NEW SECTION.  Sec. 302   A new section is added to chapter 46.16 RCW to read as follows:
     DISPOSITION OF REVENUES. (1) Revenues generated from the sale of special license plates for those sponsoring organizations who used the application process in section 301(3) of this act must be deposited into the motor vehicle account until the department determines that the state's portion of the implementation costs have been fully reimbursed. When it is determined that the state has been fully reimbursed the department must notify the house of representatives and senate transportation committees and commence the distribution of the revenue as otherwise provided by law.
     (2) If reimbursement does not occur within the two-year time frame, the special license plate series will be placed in probationary status for a period of one year from that date. If the state is still not fully reimbursed for its implementation costs after the one-year probation, the plate series will be discontinued immediately. Those plates issued up until the point of discontinuation will remain valid until they are required to be replaced under RCW 46.16.233. The state must be reimbursed for its portion of the implementation costs within two years from the date the new plate series goes on sale to the public.
     (3) The special license plate applicant trust account is created in the custody of the state treasurer. All receipts from special license plate applicants, except the application fee as provided in section 301(3) of this act, must be deposited into the account. Only the director of the department or the director's designee may authorize disbursements from the account. The account is not subject to the allotment procedures under chapter 43.88 RCW, nor is an appropriation required for disbursements.
     (4) The department shall provide the special license plate applicant with a written receipt for the payment.
     (5) The department shall maintain a record of each special license plate applicant trust account deposit, including, but not limited to, the name and address of each special license plate applicant whose funds are being deposited, the amount paid, and the date of the deposit.
     (6) After the department receives written notice that the special license plate applicant's application has been:
     (a) Approved by the legislature the director shall request that the money be transferred to the motor vehicle account;
     (b) Denied by the special license plate review board or the legislature the director shall provide a refund to the applicant within thirty days; or
     (c) Withdrawn by the special license plate applicant the director shall provide a refund to the applicant within thirty days.

NEW SECTION.  Sec. 303   A new section is added to chapter 46.16 RCW to read as follows:
     SPECIAL LICENSE PLATE ON-GOING REQUIREMENTS. (1) Upon legislative enactment of a new special license plate series for a qualifying organization meeting the requirements of section 201(1) of this act, the department shall enter into a written agreement with the organization that sponsored the special license plate. The agreement must identify the services to be performed by the sponsoring organization. The agreement must be consistent with all applicable state law and include the following provision:

     "No portion of any funds disbursed under the agreement may be used, directly or indirectly, for any of the following purposes:
     (a) Attempting to influence: (i) The passage or defeat of legislation by the legislature of the state of Washington, by a county, city, town, or other political subdivision of the state of Washington, or by the Congress; or (ii) the adoption or rejection of a rule, standard, rate, or other legislative enactment of a state agency;
     (b) Making contributions reportable under chapter 42.17 RCW; or
     (c) Providing a: (i) Gift; (ii) honoraria; or (iii) travel, lodging, meals, or entertainment to a public officer or employee."

     (2) The sponsoring organization must submit an annual financial report by September 30th of each year to the department detailing actual revenues and expenditures of the revenues received from sales of the special license plate. Consistent with the agreement under subsection (1) of this section, the sponsoring organization must expend the revenues generated from the sale of the special license plate series for the benefit of the public, and it must be spent within this state. Disbursement of the revenue generated from the sale of the special license plate to the sponsoring organization is contingent upon the organization meeting all reporting and review requirements as required by the department.
     (3) If the sponsoring organization ceases to exist or the purpose of the special license plate series ceases to exist, revenues generated from the sale of the special license plates will be deposited into the motor vehicle account.
     (4) A sponsoring organization may not seek to redesign its plate series until all of the inventory is sold or purchased by the organization itself. All cost for redesign of a plate series must be paid by the sponsoring organization.

NEW SECTION.  Sec. 304   A new section is added to chapter 46.16 RCW to read as follows:
     NONREVIEWED PLATES. (1) A special license plate series created by the legislature after January 1, 2004, that has not been reviewed and approved by the special license plate review board is subject to the following requirements:
     (a) The organization sponsoring the license plate series shall submit prepayment of all start-up costs associated with the creation and implementation of the special license plate in an amount determined by the department. The prepayment will be credited to the motor vehicle fund.
     (b) If the sponsoring organization is not able to meet the prepayment requirements in (a) of this subsection and can demonstrate this fact to the satisfaction of the department, the revenues generated from the sale of the special license plates will be deposited in the motor vehicle account until the department determines that the state's portion of the implementation costs have been fully reimbursed. When it is determined that the state has been fully reimbursed the department must notify the treasurer to commence distribution of the revenue according to statutory provisions.
     (2) The state must be reimbursed for its portion of the implementation costs within two years from the date the new plate series goes on sale to the public. If the reimbursement does not occur within the two-year time frame, the special license plate series will be placed in probationary status for a period of one year from that date. If the state is still not fully reimbursed for its implementation costs after the one-year probation, the plate series will be discontinued immediately. Those plates issued up until the point of discontinuation will remain valid until they are required to be replaced under RCW 46.16.233.
     (3) If the sponsoring organization ceases to exist or the purpose of the special plate series ceases to exist, revenues generated from the sale of the special license plates must be deposited into the motor vehicle account.
     (4) A sponsoring organization may not seek to redesign their plate series until all of the existing inventory is sold or purchased by the organization itself. All cost for redesign of a plate series must be paid by the sponsoring organization.

Sec. 401   RCW 46.16.233 and 2000 c 37 s 1 are each amended to read as follows:
     (1) Except for those license plates issued under RCW 46.16.305(1) before January 1, 1987, under RCW 46.16.305(3), and to commercial vehicles with a gross weight in excess of twenty-six thousand pounds, effective with vehicle registrations due or to become due on January 1, 2001, all vehicle license plates must be issued on a standard background, as designated by the department. Additionally, to ensure maximum legibility and reflectivity, the department shall periodically provide for the replacement of license plates, except for commercial vehicles with a gross weight in excess of twenty-six thousand pounds. Frequency of replacement shall be established in accordance with empirical studies documenting the longevity of the reflective materials used to make license plates.
     (2) Special license plate series approved by the special license plate review board and enacted by the legislature are subject to subsection (1) of this section but may display a symbol approved by the special license plate review board. The symbol may take up no more than one-third of the space available on the license plate.

Sec. 501   RCW 46.16.314 and 1997 c 291 s 9 are each amended to read as follows:
     ((After a period of three years from the initial issuance of a special license plate series,)) The department has the sole discretion, based upon the number of sales to date, to determine whether or not to continue issuing ((the)) license plates in a special series created before January 1, 2003.

NEW SECTION.  Sec. 601   Part headings used in this act are not part of the law.