"NEW SECTION.  Sec. 1   A new section is added to chapter 46.16 RCW to read as follows:
     (1) The following special license plate series created by the legislature may be personalized: (a) RCW 46.16.301 as currently law; (b) RCW 46.16.301(1) (a), (b), or (c), as it existed before amendment by section 5, chapter 291, Laws of 1997; (c) RCW 46.16.305, except those plates issued under RCW 46.16.305 (1) and (2); (d) RCW 46.16.324; (e) RCW 46.16.385; or (f) RCW 46.16.745.
     (2) Personalized special plates issued under this section may be personalized only by using numbers or letters, or any combination thereof not exceeding seven positions, and not less than one position, to the extent that there are no conflicts with existing license plate series. A personalized special license plate is subject to the same requirements as personalized license plates listed in RCW 46.16.575, 46.16.580, 46.16.590, 46.16.595, and 46.16.600.
     (3) In addition to any other fees and taxes due at the time of registration, applicants for a personalized special license plate must pay both the fees to purchase and renew a special plate as set out in the statute creating the special plate and the personalized plate as required in RCW 46.16.585 and 46.16.606. The special plate fee must be distributed in accordance with the requirements set out in the statute creating the special plate. The personalized plate fee must be distributed under RCW 46.16.605 and 46.16.606, except ten dollars of the original or renewal fee must be deposited into the pedestrian and bicycle grant program account created under section 9 of this act. The transfer of personalized special plates is to be administered under RCW 46.16.316.

Sec. 2   RCW 46.16.316 and 2004 c 223 s 4, 2004 c 221 s 5, 2004 c 48 s 5, and 2004 c 35 s 5 are each reenacted and amended to read as follows:
     Except as provided in RCW 46.16.305:
     (1) When a person who has been issued a special license plate or plates: (a) Under RCW 46.16.30901, 46.16.30903, 46.16.30905, or 46.16.301 as it existed before amendment by section 5, chapter 291, Laws of 1997, or under RCW 46.16.305(2) or 46.16.324; ((or)) (b) approved by the special license plate review board under RCW 46.16.715 through 46.16.775; or (c) under section 1 of this act sells, trades, or otherwise transfers or releases ownership of the vehicle upon which the special license plate or plates have been displayed, he or she shall immediately report the transfer of such plate or plates to an acquired vehicle or vehicle eligible for such plates pursuant to departmental rule, or he or she shall surrender such plates to the department immediately if such surrender is required by departmental rule. If a person applies for a transfer of the plate or plates to another eligible vehicle, a transfer fee of ten dollars shall be charged in addition to all other applicable fees. Such transfer fees shall be deposited in the motor vehicle fund. Failure to surrender the plates when required is a traffic infraction.
     (2) If the special license plate or plates issued by the department become lost, defaced, damaged, or destroyed, application for a replacement special license plate or plates shall be made and fees paid as provided by law for the replacement of regular license plates.

Sec. 3   RCW 46.16.385 and 2004 c 222 s 1 are each amended to read as follows:
     (1) The department shall design and issue disabled parking emblem versions of special license plates issued under (a) RCW 46.16.301; (b) RCW 46.16.305, except those plates issued under RCW 46.16.305 (1) and (2); (c) RCW 46.16.324; (d) RCW 46.16.745; (e) RCW 73.04.110; (f) RCW 73.04.115; ((or)) (g) RCW 46.16.301(1) (a), (b), or (c), as it existed before amendment by section 5, chapter 291, Laws of 1997; (h) RCW 46.16.565; or (i) plates issued under section 1 of this act. The disabled parking emblem version of the special plate must display the universal symbol of access that may be used in lieu of the parking placard issued to persons who qualify for special parking privileges under RCW 46.16.381. The department may not charge an additional fee for the issuance of the special disabled parking emblem license plate, except the regular motor vehicle registration fee, the fee associated with the particular special plate, and any other fees and taxes required to be paid upon registration of a motor vehicle. The emblem must be incorporated into the design of the special license plate in a manner to be determined by the department, and under existing vehicular licensing procedures and existing laws.
     (2) Persons who qualify for special parking privileges under RCW 46.16.381, and who have applied and paid the appropriate fee for any of the special license plates listed in subsection (1) of this section, are entitled to receive from the department a special disabled parking emblem license plate. The special disabled parking emblem license plate may be used for one vehicle registered in the disabled person's name. Persons who have been issued the parking privileges or who are using a vehicle displaying the special disabled parking emblem license plate may park in places reserved for mobility disabled persons.
     (3) The special disabled parking emblem license plate must be administered in the same manner as the plates issued under RCW 46.16.381.
     (4) The department shall adopt rules to implement this section.

Sec. 4   RCW 46.16.570 and 1986 c 108 s 1 are each amended to read as follows:
     Except for personalized plates issued under section 1 of this act, the personalized license plates shall be the same design as regular license plates, and shall consist of numbers or letters, or any combination thereof not exceeding seven positions unless proposed by the department and approved by the Washington state patrol and not less than one position, to the extent that there are no conflicts with existing passenger, commercial, trailer, motorcycle, or special license plates series or with the provisions of RCW 46.16.230 or 46.16.235: PROVIDED, That the maximum number of positions on personalized license plates for motorcycles shall be designated by the department.

Sec. 5   RCW 46.16.600 and 1979 c 158 s 143 are each amended to read as follows:
     (1) The director of licensing may establish such rules and regulations as may be necessary to carry out the purposes of RCW 46.16.560 through 46.16.595.
     (2) Upon direction by the board, the department shall adopt a rule limiting the ability of organizations and governmental entities to apply for more than one license plate series.

Sec. 6   RCW 46.16.690 and 2003 c 361 s 502 are each amended to read as follows:
     The department shall offer license plate design services to organizations that are sponsoring a new special license plate series or are seeking to redesign the appearance of an existing special license plate series that they sponsored. In providing this service, the department must work with the requesting organization in determining the specific qualities of the new plate design and must provide full design services to the organization. The department shall collect from the requesting organization a fee of ((one thousand five)) two hundred dollars for providing license plate design services. This fee includes one original license plate design and up to five additional renditions of the original design. If the organization requests the department to provide further renditions, in addition to the five renditions provided for under the original fee, the department shall collect an additional fee of ((five)) one hundred dollars per rendition. All revenue collected under this section must be deposited into the multimodal transportation account.

Sec. 7   RCW 46.16.725 and 2003 c 196 s 103 are each amended to read as follows:
     (1) The creation of the board does not in any way preclude the authority of the legislature to independently propose and enact special license plate legislation.
     (2) The board must review and either approve or reject special license plate applications submitted by sponsoring organizations.
     (3) Duties of the board include but are not limited to the following:
     (a) Review and approve the annual financial reports submitted by sponsoring organizations with active special license plate series and present those annual financial reports to the legislative transportation committee;
     (b) Report annually to the legislative transportation committee on the special license plate applications that were considered by the board;
     (c) Issue approval and rejection notification letters to sponsoring organizations, the department, the chairs of the senate and house of representatives transportation committees, and the legislative sponsors identified in each application. The letters must be issued within seven days of making a determination on the status of an application;
     (d) Review annually the number of plates sold for each special license plate series created after January 1, 2003. The board may submit a recommendation to discontinue a special plate series to the chairs of the senate and house of representatives transportation committees;
     (e) Provide policy guidance and directions to the department concerning the adoption of rules necessary to limit the number of special license plates that an organization or a governmental entity may apply for.
     (4) In order to assess the effects and impact of the proliferation of special license plates, the legislature declares a temporary moratorium on the issuance of any additional plates until June 1, 2007. During this period of time, the special license plate review board created in RCW 46.16.705 and the department of licensing are prohibited from accepting, reviewing, processing, or approving any applications. Additionally, no special license plate may be enacted by the legislature during the moratorium, unless the proposed license plate has been approved by the board before February 15, 2005.

Sec. 8   RCW 46.16.745 and 2003 c 196 s 301 are each amended to read as follows:
     (1) A sponsoring organization meeting the requirements of RCW 46.16.735, applying for the creation of a special license plate to the special license plate review board must, on an application supplied by the department, provide the minimum application requirements in subsection (2) of this section. ((If the sponsoring organization cannot meet the payment requirements of subsection (2) of this section, then the organization must meet the requirements of subsection (3) of this section.))
     (2) The sponsoring organization shall:
     (a) Submit prepayment of all start-up costs associated with the creation and implementation of the special license plate in an amount determined by the department. The department shall place this money into the special license plate applicant trust account created under RCW 46.16.755(((3))) (4);
     (b) Provide a proposed license plate design;
     (c) Provide a marketing strategy outlining short and long-term marketing plans for ((the)) each special license plate and a financial analysis outlining the anticipated revenue and the planned expenditures of the revenues derived from the sale of the special license plate;
     (d) Provide a signature of a legislative sponsor and proposed legislation creating the special license plate; ((and))
     (e) Provide proof of organizational qualifications as determined by the department as provided for in RCW 46.16.735;
     (f) Provide signature sheets that include signatures from individuals who intend to purchase the special license plate and the number of plates each individual intends to purchase. The sheets must reflect a minimum of three thousand five hundred intended purchases of the special license plate.
     (3) ((If the sponsoring organization is not able to meet the payment requirements of subsection (2)(a) of this section and can demonstrate this fact to the satisfaction of the department, the sponsoring organization shall:
     (a) Submit an application and nonrefundable fee of two thousand dollars, for deposit in the motor vehicle account, to the department;
     (b) Provide signature sheets that include signatures from individuals who intend to purchase the special license plate and the number of plates each individual intends to purchase. The sheets must reflect a minimum of two thousand intended purchases of the special license plate;
     (c) Provide a proposed license plate design;
     (d) Provide a marketing strategy outlining short and long-term marketing plans for the special license plate and a financial analysis outlining the anticipated revenue and the planned expenditures of the revenues derived from the sale of the special license plate;
     (e) Provide a signature of a legislative sponsor and proposed legislation creating the special license plate; and
     (f) Provide proof of organizational qualifications as determined by the department as provided in RCW 46.16.735.
     (4))) After an application is approved by the special license plate review board, the application need not be reviewed again by the board for a period of three years.

NEW SECTION.  Sec. 9   A new section is added to chapter 47.30 RCW to read as follows:
     (1) The pedestrian and bicycle grant program account is created in the custody of the state treasurer. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
     (2) Funds in the account must be disbursed subject to the following conditions and limitations:
     (a) The department of transportation shall oversee the program and grants.
     (b) The department of transportation shall adopt rules regarding the distribution of funds within this account. However, such rules must include the following requirements:
     (i) Only a governmental subdivision may apply for and receive funds;
     (ii) The entity applying for funds must supply matching funds;
     (iii) Grants are limited to expansion of projects in order to take advantage of the cost saving provided by adding onto a construction project; and
     (iv) Grants are limited to the creation and/or expansion of bicycle and pedestrian pathways and projects.

NEW SECTION.  Sec. 10   Section 1 of this act takes effect March 1, 2007."