SENATE BILL REPORT

SHB 1568

As of March 15, 2017

Title: An act relating to creating Fred Hutch special license plates.

Brief Description: Creating Fred Hutch special license plates.

Sponsors: House Committee on Transportation (originally sponsored by Representatives Pettigrew, Macri, Harris, Bergquist and Farrell).

Brief History: Passed House: 2/28/17, 95-3.

Committee Activity: Transportation: 3/14/17.

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 must submit documentation to the DOL that verifies the organization is either a 501c3 nonprofit as defined in federal law, or is located in Washington State and has registered as a charitable organization with the Secretary of State's Office. The organization may be permitted to sponsor a plate if it is a professional sports franchise and is using the profits in conjunction with a 501c3 nonprofit organization. A governmental body may also qualify for a special license plate.

An organization that meets statutory requirements regarding special plate sponsorship must then supply the DOL with the following:

• prepayment of startup costs;

• the design of the special license plate;

• a marketing strategy and financial analysis regarding anticipated revenue and expenditures;

• proposed legislation and a signature of the legislative sponsor;

• proof of the organization's qualifications to sponsor a special plate; and

• signature sheets containing at least 3500 signatures of individuals who intend to purchase the special plate.

Three years must pass before an application is reviewed again after approval by the DOL.

Within 30 days of legislative enactment, the DOL shall enter a written agreement with the sponsoring organization. The revenues generated by the special plate must be for the benefit of the public and be spent within the state. The sponsoring organization is required to reimburse the DOL for the costs of establishing the new special plate. Startup costs for 2017 are $6,300 unless six or more plates are approved by the Legislature, at which time each legislatively-approved organization would need to provide an additional $32,000. If the state is not reimbursed within two years, the special plate is put on probationary status for one year. If the startup costs have not been paid within the probation year, the special plate will be discontinued. Disbursement of the revenue generated from the sale of the special license plate to the sponsoring organization is contingent upon the organization meeting DOL's reporting and review requirements. 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 fund until the DOL determines the start-up costs for a special license plate are paid.

If the sponsoring organization ceases to exist, the revenues generated must be deposited into the Motor Vehicle fund.

Summary of Bill: The Fred Hutch special license plate is created with the purpose of supporting the Fred Hutchinson Cancer Research Center. In addition to all fees and taxes required to be paid upon application for a vehicle registration, a fee of $40 will be charged for a Fred Hutch special license plate and a $30 fee will be charged for renewal of the plate.

After the costs associated with establishing the special license plate are recovered, proceeds from the sale of the special license plates will be provided to the Fred Hutchinson Cancer Research Center to support cancer research.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

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

Staff Summary of Public Testimony: PRO: The Fred Hutch Institute is working to eliminate all forms of cancer and other related diseases. The Institute is grateful for the support we have received thus far. Our motto is simple, cures start here. Cancer effects all families in this state. This is one of the world’s leading cancer research institutions and it is here, in our state.

Persons Testifying: PRO: Kathryn Sweyer, Director of Marketing.

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