SENATE BILL REPORT

HB 2262

As Reported by Senate Committee On:

Transportation, February 25, 2016

Title: An act relating to Washington tennis special license plates.

Brief Description: Creating Washington tennis special license plates.

Sponsors: Representatives Bergquist, Muri, Gregerson and Pettigrew.

Brief History: Passed House: 2/12/16, 83-12.

Committee Activity: Transportation: 2/24/16, 2/25/16 [DP].

Majority Report: Do pass.

Signed by Senators King, Chair; Fain, Vice Chair, Budget; Hobbs, Ranking Minority Member; Liias, Assistant Ranking Minority Member; Carlyle, Cleveland, Jayapal, Litzow, Miloscia, Rivers, Sheldon and Takko.

Staff: Kellee Keegan (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 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.

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 Washington tennis special license plates, in order to build awareness and create year-round opportunities for tennis in the state. 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 Washington tennis special license plate and a $30 fee is charged for renewal of the plate.

After the costs associated with establishing the special license plates are recovered, proceeds from the sale of the special license plates will go to cities to assist in the construction and maintenance of a public tennis facility with at least four indoor tennis courts. Construction funds are first available to the most populous eligible city, according to the most recent census, for a time period not to exceed five years, with eligibility determined by the lack of a public or private facility with at least four indoor tennis courts in a city. Maintenance funds are made available to the first eligible city that utilizes the construction funds.

The bill exempts the Washington tennis special license plate from the moratorium on new special license plates which expired July 1, 2015.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on January 1, 2017.

Staff Summary of Public Testimony: PRO: This state is difficult for winter-time tennis. Once a child picks up the sport, and would like to improve, there are no low cost options for kids to play tennis indoors. Tournament players do not have enough tennis courts. This is an economic development bill.

Persons Testifying: PRO: Representative Steve Bergquist, Prime Sponsor; Doug Levy, City of Renton.

Persons Signed In To Testify But Not Testifying: No one.