"NEW SECTION.  Sec. 1   A new section is added to chapter 46.16 RCW to read as follows:
     (1) The following special license plate series created by the legislature may be personalized: (a) RCW 46.16.301 as currently law; (b) RCW 46.16.301(1) (a), (b), or (c), as it existed before amendment by section 5, chapter 291, Laws of 1997; (c) RCW 46.16.305, except those plates issued under RCW 46.16.305 (1) and (2); (d) RCW 46.16.324; (e) RCW 46.16.385; or (f) RCW 46.16.745.
     (2) Personalized special plates issued under this section may be personalized only by using numbers or letters, or any combination thereof not exceeding seven positions, and not less than one position, to the extent that there are no conflicts with existing license plate series. A personalized special license plate is subject to the same requirements as personalized license plates listed in RCW 46.16.575, 46.16.580, 46.16.590, 46.16.595, and 46.16.600.
     (3) In addition to any other fees and taxes due at the time of registration, applicants for a personalized special license plate must pay both the fees to purchase and renew a special plate as set out in the statute creating the special plate and the personalized plate as required in RCW 46.16.585 and 46.16.606. The special plate fee must be distributed in accordance with the requirements set out in the statute creating the special plate. The personalized plate fee must be distributed under RCW 46.16.605 and 46.16.606. The transfer of personalized special plates is to be administered under RCW 46.16.316.

Sec. 2   RCW 46.16.233 and 2003 c 361 s 501 and 2003 c 196 s 401 are each reenacted and 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, the appearance of the background of all vehicle license plates may vary in color and design but must be legible and clearly identifiable as a Washington state license plate, 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 created under RCW 46.16.705)) department and enacted by the legislature may display a symbol or artwork approved by the ((special license plate review board)) department.
     (3) By November 1, 2003, in providing for the periodic replacement of license plates, the department shall offer to vehicle owners the option of retaining their current license plate numbers. The department shall charge a retention fee of twenty dollars if this option is exercised. Revenue generated from the retention fee must be deposited into the multimodal transportation account.

Sec. 3   RCW 46.16.316 and 2004 c 223 s 4, 2004 c 221 s 5, 2004 c 48 s 5, and 2004 c 35 s 5 are each reenacted and amended to read as follows:
     Except as provided in RCW 46.16.305:
     (1) When a person who has been issued a special license plate or plates: (a) Under RCW 46.16.30901, 46.16.30903, 46.16.30905, or 46.16.301 as it existed before amendment by section 5, chapter 291, Laws of 1997, or under RCW 46.16.305(2) or 46.16.324; ((or)) (b) approved by the ((special license plate review board)) department under RCW 46.16.715 through 46.16.775; or (c) under section 1 of this act sells, trades, or otherwise transfers or releases ownership of the vehicle upon which the special license plate or plates have been displayed, he or she shall immediately report the transfer of such plate or plates to an acquired vehicle or vehicle eligible for such plates pursuant to departmental rule, or he or she shall surrender such plates to the department immediately if such surrender is required by departmental rule. If a person applies for a transfer of the plate or plates to another eligible vehicle, a transfer fee of ten dollars shall be charged in addition to all other applicable fees. Such transfer fees shall be deposited in the motor vehicle fund. Failure to surrender the plates when required is a traffic infraction.
     (2) If the special license plate or plates issued by the department become lost, defaced, damaged, or destroyed, application for a replacement special license plate or plates shall be made and fees paid as provided by law for the replacement of regular license plates.

Sec. 4   RCW 46.16.385 and 2004 c 222 s 1 are each amended to read as follows:
     (1) The department shall design and issue disabled parking emblem versions of special license plates issued under (a) RCW 46.16.301; (b) RCW 46.16.305, except those plates issued under RCW 46.16.305 (1) and (2); (c) RCW 46.16.324; (d) RCW 46.16.745; (e) RCW 73.04.110; (f) RCW 73.04.115; ((or)) (g) RCW 46.16.301(1) (a), (b), or (c), as it existed before amendment by section 5, chapter 291, Laws of 1997; (h) RCW 46.16.565; or (i) plates issued under section 1 of this act. The disabled parking emblem version of the special plate must display the universal symbol of access that may be used in lieu of the parking placard issued to persons who qualify for special parking privileges under RCW 46.16.381. The department may not charge an additional fee for the issuance of the special disabled parking emblem license plate, except the regular motor vehicle registration fee, the fee associated with the particular special plate, and any other fees and taxes required to be paid upon registration of a motor vehicle. The emblem must be incorporated into the design of the special license plate in a manner to be determined by the department, and under existing vehicular licensing procedures and existing laws.
     (2) Persons who qualify for special parking privileges under RCW 46.16.381, and who have applied and paid the appropriate fee for any of the special license plates listed in subsection (1) of this section, are entitled to receive from the department a special disabled parking emblem license plate. The special disabled parking emblem license plate may be used for one vehicle registered in the disabled person's name. Persons who have been issued the parking privileges or who are using a vehicle displaying the special disabled parking emblem license plate may park in places reserved for mobility disabled persons.
     (3) The special disabled parking emblem license plate must be administered in the same manner as the plates issued under RCW 46.16.381.
     (4) The department shall adopt rules to implement this section.

Sec. 5   RCW 46.16.570 and 1986 c 108 s 1 are each amended to read as follows:
     Except for personalized plates issued under section 1 of this act, the personalized license plates shall be the same design as regular license plates, and shall consist of numbers or letters, or any combination thereof not exceeding seven positions unless proposed by the department and approved by the Washington state patrol and not less than one position, to the extent that there are no conflicts with existing passenger, commercial, trailer, motorcycle, or special license plates series or with the provisions of RCW 46.16.230 or 46.16.235: PROVIDED, That the maximum number of positions on personalized license plates for motorcycles shall be designated by the department.

Sec. 6   RCW 46.16.600 and 1979 c 158 s 143 are each amended to read as follows:
     (1) The director of licensing may establish such rules and regulations as may be necessary to carry out the purposes of RCW 46.16.560 through 46.16.595.
     (2) The department shall adopt a rule limiting the ability of organizations and governmental entities to apply for more than one license plate series.

Sec. 7   RCW 46.16.690 and 2003 c 361 s 502 are each amended to read as follows:
     The department shall offer license plate design services to organizations that are sponsoring a new special license plate series or are seeking to redesign the appearance of an existing special license plate series that they sponsored. In providing this service, the department must work with the requesting organization in determining the specific qualities of the new plate design and must provide full design services to the organization. The department shall collect from the requesting organization a fee of ((one thousand five)) two hundred dollars for providing license plate design services. This fee includes one original license plate design and up to five additional renditions of the original design. If the organization requests the department to provide further renditions, in addition to the five renditions provided for under the original fee, the department shall collect an additional fee of ((five)) one hundred dollars per rendition. All revenue collected under this section must be deposited into the multimodal transportation account.

Sec. 8   RCW 46.16.725 and 2003 c 196 s 103 are each amended to read as follows:
     (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)) department must review and either approve or reject special license plate applications submitted by sponsoring organizations. In reviewing special license plate applications, the department shall:
     (((3) Duties 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)) department;
     (c) Issue approval and rejection notification letters to sponsoring organizations, ((the department,)) the chairs of the senate and house of representatives transportation committees, 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;
     (d) Review annually the number of plates sold for each special license plate series created after January 1, 2003. The ((board)) department may submit a recommendation to discontinue a special plate series to the chairs of the senate and house of representatives transportation committees;
     (e) Adopt rules necessary to limit the number of special license plates that an organization or a governmental entity may apply for.
     (2) In order to assess the effects and impact of the proliferation of special license plates, the legislature declares a temporary moratorium on the issuance of any additional plates until June 1, 2007. During this period of time, the department of licensing is prohibited from accepting, reviewing, processing, or approving any applications. Additionally, no special license plate may be enacted by the legislature during the moratorium, unless the proposed license plate has been approved by the special license plate review board before February 15, 2005.

Sec. 9   RCW 46.16.745 and 2003 c 196 s 301 are each amended to read as follows:
     (1) A sponsoring organization meeting the requirements of RCW 46.16.735, applying for the creation of a special license plate to the ((special license plate review board)) department 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 RCW 46.16.755(((3))) (4);
     (b) Provide a proposed license plate design;
     (c) Provide a marketing strategy outlining short and long-term marketing plans for ((the)) each 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 RCW 46.16.735;
     (f) 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 three thousand five hundred intended purchases of the special license plate.
     (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 nonrefundable fee of two thousand 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 RCW 46.16.735.
     (4))) After an application is approved by the ((special license plate review board)) department, the application need not be reviewed again by the ((board)) department for a period of three years.

Sec. 10   RCW 46.16.755 and 2004 c 222 s 4 are each amended to read as follows:
     (1)(a) Revenues generated from the sale of special license plates for those sponsoring organizations who used the application process in RCW 46.16.745(3) must be deposited into the motor vehicle account until the department determines that the state's implementation costs have been fully reimbursed. The department shall apply the application fee required under RCW 46.16.745(3)(a) towards those costs.
     (b) When it is determined that the state has been fully reimbursed the department must notify the house of representatives and senate transportation committees, the sponsoring organization, and the treasurer, and commence the distribution of the revenue as otherwise provided by law.
     (2) If reimbursement does not occur within two years from the date the plate is first offered for sale to the public, the special license plate series must 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 must be discontinued immediately. Special plates issued before discontinuation are valid until replaced under RCW 46.16.233.
     (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 RCW 46.16.745(3), 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)) department 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.

Sec. 11   RCW 46.16.775 and 2003 c 196 s 304 are each amended to read as follows:
     (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 or the department is subject to the following requirements:
     (a) The organization sponsoring the license plate series shall, within thirty days of enactment of the legislation creating the plate series, 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. The creation and implementation of the plate series may not commence until payment is received by the department.
     (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 must 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.
     (c) The sponsoring organization must provide a proposed license plate design to the department within thirty days of enactment of the legislation creating the plate series.
     (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 must 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 must be discontinued immediately. Those plates issued before discontinuation are valid until 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.

NEW SECTION.  Sec. 12   The following acts or parts of acts are each repealed:
     (1) RCW 46.16.705 (Special license plate review board -- Created) and 2003 c 196 s 101; and
     (2) RCW 46.16.715 (Board -- Administration) and 2003 c 196 s 102.

NEW SECTION.  Sec. 13   Section 1 of this act takes effect March 1, 2007."