(1) The governor may enter into compacts with federally recognized Indian tribes principally located within this state concerning the licensing and registration of tribal government and tribal member-owned vehicles with tribal license plates issued by the department.

(2) Each compact entered into under this section must contain the following provisions:

(a) The design of a tribal license plate shall be determined by the compacting tribe, except that the design must be readable by toll collection facilities and configured in a manner allowing for electronic distribution through state and national law enforcement databases;

(b) Tribal license plate recipients must pay all applicable taxes, fees, and vehicle tolls, except that the compacting tribe may pay these expenses on behalf of its enrolled members as provided in the compact;

(c) That the eligibility for a tribal license plate is limited to tribal governments and enrolled members of the compacting tribe who reside in the state, and that the compact may address additional requirements;

(d) Information regarding a vehicle that has been issued a tribal license plate, including vehicle description and ownership information, be maintained in the department's recordkeeping systems.

(3) Each compact must also address the following subjects:

(a) The department's administrative costs for issuing tribal license plates and maintaining information regarding vehicles that have been issued tribal license plates;

(b) Information sharing between the department and the compacting tribe;

(c) The process for applying for and receiving tribal license plates; and

(d) Dispute resolution, including the use of mediation or other nonjudicial process.

(4) The governor may delegate the power to negotiate compacts under this section to the department.