HOUSE BILL REPORT

SHB 1329

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.

Sponsors: House Committee on Transportation (originally sponsored by Representatives Maxwell, Liias, Haigh, Dammeier, Armstrong, McCoy, Finn, Billig, Hunt, Probst, Lytton, Kenney, Ryu, Frockt, Sells, Jacks, Orwall, Van De Wege, Roberts, Tharinger and Miloscia).

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 26 members: Representatives Clibborn, Chair; Billig, Vice Chair; Liias, Vice Chair; Armstrong, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Angel, Asay, Eddy, Finn, Fitzgibbon, Jinkins, Johnson, Ladenburg, McCune, Moeller, Moscoso, Overstreet, Reykdal, Rivers, Rodne, Rolfes, Ryu, Shea, Takko, Upthegrove and Zeiger.

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. Generally, 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.

There is a moratorium on the issuance of new special license plates until June 30, 2011.

Summary of Substitute Bill:

The bill creates a "Music Matters" special license plate which would display the "Music Matters" logo. 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 "Music Matters" special license plate and a $30 fee is charged for renewal of a special license plate.

The DOL is to collect the special license plate fees and deduct an amount not to exceed $12 for new plate issuance and $2 for renewal. These deductions are provided to offset the administration and collection expenses associated with the "Music Matters" special license plate. After these expenses are paid, the State Treasurer deposits proceeds into the Motor Vehicle Account until the DOL determines the start-up costs for the "Music Matters" special license plate are paid. Once all start-up costs are paid, the State Treasurer deposits remaining special license plate fee amounts for each plate into the "Music Matters" Awareness Account which is created in the bill.

EFFECT OF SENATE AMENDMENT(S):

The Senate amendment requires the Music Matters organization to provide the start up costs and signatures for the Music Matters special license plates as part of its application to the Department of Licensing. The Senate amendment also requires the Department of Licensing to report certain findings regarding implementation of the Music Matters special license plate program to the Joint Transportation Committee. An effective date of January 1, 2012 is also added by the Senate amendment.

Staff Summary of Public Testimony:

(In support) The "Music Matters" special license plate provides a way to raise awareness, recognize the importance of music within the education system, and raise funds to support music education. Music enriches everyone's lives and has been proven to improve student concentration and focus in all academic subjects. Studies show that when fewer opportunities for music and arts are provided to students, test scores go down. For these and many more reasons, music is an important aspect of a quality education. Yet, due to the current economic climate, music programs are often disproportionately cut when compared to other education programs. The "Music Matters" special license plate will infuse funds into music programs and assist in achieving financial stability for music programs. Furthermore, the "Music Matters" special license plate bill is a model for a public-private partnership. The "Music Matters" sponsoring organization will track all licenses sold and work with educators to distribute funds throughout the state.

(Opposed) None.