SENATE BILL REPORT

SB 5152

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.

As Reported by Senate Committee On:

Transportation, January 30, 2013

Title: An act relating to Seattle Sounders FC and Seattle Seahawks special license plates.

Brief Description: Creating Seattle Sounders FC and Seattle Seahawks special license plates.

Sponsors: Senators Eide, King, Hobbs, Fain, Hatfield, Delvin, Murray, Frockt, Conway, Kohl-Welles and Shin; by request of Lieutenant Governor.

Committee Activity: Transportation: 1/29/13, 1/30/13 [DPS].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: That Substitute Senate Bill No. 5152 be substituted therefor, and the substitute bill do pass.

Signed by Senators Benton, Vice Co-Chair; Eide, Co-Chair; King, Co-Chair; Fain, Budget Leadership Cabinet; Harper, Hobbs, Mullet, Schlicher, Sheldon and Smith.

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, 2013.

Summary of Bill (Recommended Substitute): The Seattle Sounders FC special license plate, displaying the Seattle Sounds FC logo, and the Seattle Seahawks special license plate, displaying the Seattle Seahawks logo, are created. In addition to all fees and taxes that must be paid for a vehicle registration, a fee of $40 is charged for an original issue Seattle Sounders FC or Seattle Seahawks special license plate, and a $30 fee is charged upon renewal.

A professional sports franchise located within Washington State may sponsor a special license plate if the funds are used in conjunction with a nonprofit organization.

The remaining proceeds from the sale of the special license plate after the costs associated with establishing the plates are distributed as follows:

Sounders FC Special Plate. Up to 30 percent, not to exceed $40,000 annually, adjusted for inflation by the Office of Financial Management goes to the Association of Washington Generals to develop educational, veterans, international relations, and civic projects, and to recognize the outstanding public service of individuals or groups.

Seventy percent and any of the remaining proceeds after distributions are made to the Association of Washington Generals are for the nonprofit organization, Washington State Mentors, to increase the number of mentors in the state by offering mentoring grants throughout Washington State that foster positive youth development and academic success. Up to 20 percent of this amount may be used for program administration costs.

Seattle Seahawks Special Plate. Proceeds are to be used by the nonprofit organization, InvestED, to encourage secondary students who have economic needs to stay in school, return to school, or get involved within their learning community.

The Seattle Sounders FC and the Seattle Seahawks special license plates are exempt from the temporary moratorium on special license plates.

EFFECT OF CHANGES MADE BY TRANSPORTATION COMMITTEE (Recommended Substitute): A section is added that allows a professional sports franchise located in Washington State to sponsor a special license plate if the funds are used in conjunction with a nonprofit organization.

The provision that proceeds from each special plate will first be used to reimburse the sponsoring organization for startup costs is removed.

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, 2014.

Staff Summary of Public Testimony on Original Bill: PRO: These plates will provide sustainable opportunities for three nonprofit organizations that help children. These nonprofit organizations are perfect partners for the Seahawks and Sounders FC because they all support the healthy development of youth through academics and athletics. These plates will raise considerable revenue because they represent two great teams that have a tremendous fan base. There are over 400,000 kids in the greater Seattle area that are involved in soccer. A Sounders FC license plate will be much better than a license plate because it will not mess up the paint. Seattle Seahawk fans are excitable and they wear the number 12 as a badge of honor. Fans will step up and support this opportunity to have a Seahawks and Sounders FC license plate.

Persons Testifying: PRO: Lt. Governor Brad Owen; Mike Flood, Vice President of Community Relations - Seahawks-Sounders; Clare Meeker, Matt Mikolas, citizens.