SENATE BILL REPORT

HB 2100

As Reported by Senate Committee On:

Transportation, February 24, 2014

Title: An act relating to Seattle University special license plates.

Brief Description: Creating Seattle University special license plates.

Sponsors: Representatives Johnson, Rodne, Pollet, Zeiger, Tarleton, Senn, Habib, Moscoso, Goodman, Bergquist, Fey, Walkinshaw, Riccelli and Freeman.

Brief History: Passed House: 2/11/14, 91-7.

Committee Activity: Transportation: 2/19/14, 2/24/14 [DP].

Majority Report: Do pass.

Signed by Senators Eide, Co-Chair; King, Co-Chair; Fain, Budget Leadership Cabinet; Angel, Brown, Cleveland, Liias, Mullet and Rolfes.

Staff: Amanda Cecil (786-7429)

Background: The Department of Licensing (DOL) issues special vehicle license plates that may be used in lieu of standard plates. A governmental or nonprofit organization seeking to sponsor a special plate either submits an application to DOL or requests legislation to create the special plate.

Revenues generated from the sale of a special license plate are first used to reimburse the motor vehicle account for any costs associated with establishing the new plate. After DOL determines that the state has been reimbursed for the cost of implementing the new plate, the remaining revenues are directed to various accounts and uses prescribed by the specific plate. DOL may also deduct up to $12 for an original issue and $2 for the renewal of a special plate to cover administration and collection expenses.

There is a moratorium on the issuance of new special license plates until July 1, 2015.

Summary of Bill: The Seattle University special license plate, displaying art work that recognizes Seattle University, is created. In addition to all fees and taxes required to be paid upon application for a vehicle registration, a fee of $40 is charged for a Seattle University special license plate and a $30 fee is charged for renewal of a special license plate.

After DOL determines that the state has been reimbursed for the costs associated with establishing the special license, proceeds from the sale of the Seattle University special license plates fund scholarships for students attending or planning to attend Seattle University.

The Seattle University special license plate is exempt from the temporary moratorium on special license plates.

Appropriation: None.

Fiscal Note: Available.

[OFM requested ten-year cost projection pursuant to I-960.]

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on January 1, 2015.

Staff Summary of Public Testimony: PRO: Over three-quarters of Washington residents at Seattle University receive financial aid and scholarships. Only a fraction of the alumni that signed in support of the Seattle University plate would need to purchase the plates for the state to recoup its cost. It is estimated that the scholarship program will start to collect revenue in the second year.

One of the scholarships that is supported by this group it the Fostering Scholars program, which provides full-ride scholarships to people that have been in foster care. People that have been in foster care have very low graduation rates and this allows them to not only go to college but to move on to graduate school because they are not buried under student loans. Doctors and lawyers that have been in the foster care system make society better because they have a different perspective.

Persons Testifying: PRO: Representative Johnson, prime sponsor; Senator Pedersen; Christopher Canlas, Seattle University Board of Governors; Manpreet Kaur, Seattle University.