HOUSE BILL REPORT

HB 2100

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Majority Report: Do pass. Signed by 25 members: Representatives Clibborn, Chair; Fey, Vice Chair; Moscoso, Vice Chair; Orcutt, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Bergquist, Fitzgibbon, Freeman, Habib, Hawkins, Hayes, Johnson, Klippert, Kochmar, Moeller, Muri, Ortiz-Self, Pike, Riccelli, Ryu, Sells, Takko, Tarleton, Walkinshaw and Zeiger.

Background:

The Department of Licensing (DOL) issues special vehicle license plates that may be used in lieu of standard plates. A governmental or nonprofit sponsoring organization seeking to sponsor a special plate either submits an application to the DOL or requests legislation to create the special plate. The sponsoring organization seeking to sponsor the special plate is required to reimburse the DOL for the costs of establishing the new special plate. There is a moratorium on the issuance of new special plates by the DOL until July 1, 2015.

For special license plates that are enacted by the Legislature, a sponsoring organization must, within 30 days of enactment, submit prepayment of all start-up costs to the DOL. If the sponsoring organization is not able to meet the prepayment requirement, revenues generated from the sale of the special license plate are first used to pay off any costs associated with establishing the new plate. The sponsoring organization must also provide a proposed license plate design to the DOL. Additionally, the sponsoring organization must submit an annual financial report to the DOL detailing actual revenues generated from the sale of the special license plate. The reports are reviewed, approved, and presented to the Joint Transportation Committee.

The DOL collects special license plate fees and, for administrative expenses, deducts an amount not to exceed $12 for new plate issuance and $2 for renewal. After these expenses are paid, the State Treasurer deposits the proceeds into the Motor Vehicle Account until the DOL determines the start-up costs for a special license plate are paid.

Summary of Bill:

The bill creates the Seattle University special license plate which would display a symbol or artwork recognizing Seattle University. In addition to all fees and taxes required to be paid upon application for a vehicle registration, a fee of $40 would be charged for a Seattle University special license plate and a $30 fee is charged for renewal of a special license plate.

After the costs associated with establishing the special license plates are recovered, proceeds from the sale of the Seattle University special license plates will fund scholarships for students attending or planning to attend Seattle University.

The bill exempts the Seattle University special license plate from the moratorium on new special license plates.

Staff Summary of Public Testimony:

(In support) The plates would provide money to support scholarships at Seattle University. The cost of higher education grows every year. All educational institutions, both public and private, continue to find ways to raise scholarship funds for deserving students. Ninety-six percent of this year's entering freshman class at Seattle University received financial aid. Over the past five years, there has been a 40 percent increase in the average financial aid package. Over three-quarters of Washington residents at Seattle University receive financial aid and scholarships. With more than 49,000 alumni in Washington, just 3 percent will need to order the special plates for the state to recoup its cost. The impact that scholarships have on peoples' lives is immeasurable.

(Information only) The cost of implementation is approximately $60,000 which is split among newly approved special license plates. Implementation costs could be reduced significantly with new systems.

(Opposed) None.