SB1017

House of Representatives

ADOT; special license plates report

Sponsors: Senator Jarrett, Senator Bee, Senator Harper et a

X	Committee on Transportation
	Caucus and COW
	As Engrossed and As Passed the House

SB 1017 requires the Arizona Department of Transportation (ADOT) to submit a written report on or before November 1, 2006 relating to special license plates for the purpose of determining the costs and revenues associated with special license plate production and sale.

History

Current statute provides for two ways to establish a special license plate. Either the legislature can establish a special plate in statute, or an organization may submit an application to the License Plate Commission (LPC) for a special organization license plate. Presently, there are thirty-two special license plates that are established by statute and within the Arizona Administrative Code.

Prior to 1992 the Legislature and the Governor were responsible for approving new license plates through the legislative process. Laws 1992, Chapter 208 established the LPC to approve requests for special organization plates. The statute requires the requesting organization to submit an application to the LPC for approval of the organization’s plate request. License plates approved through the LPC must be similar in color and design to Arizona’s regular license plate, except for a logo on the plate suggested by and representing the organization.

License plates approved through the commission are placed in the Arizona Administrative Code, and except for the eight dollar administrative fee per plate that is deposited into the State Highway Fund, the remaining seventeen dollars of the plate fee is deposited as a donation into a fund designated by the organization.

Current statute defines an “organization” for the purposes of obtaining a special organization plate as a nonprofit corporation that has at least two hundred members. In addition, the organization must meet the following requirements in its request for a special license plate:

1. The primary activity or interest of the organization serves the community, contributes to the welfare of others and is not offensive or discriminatory in its purpose, nature, activity or name.

2. The name of the organization or any part of the organization's purpose does not promote any specific product or brand name that is provided for sale.

3. The purpose of the organization does not promote a specific religion, faith or antireligious belief.

If the organization has less than 200 members, it must agree to pay for the costs of producing the special organization license plate as determined by the LPC. According to ADOT, the costs associated with producing a new license plate including the first 1000 pairs of plates is approximately $32,000.

Provisions

· Requires ADOT to submit a written report on or before November 2, 2006 to the President of the Senate, the Speaker of the House of Representatives, the Governor, the chairperson of the Senate Transportation Committee, the Chairperson of the House of Representatives Transportation Committee, the chairperson of the Senate Appropriations Committee, the chairpersons of the House of Representatives Appropriations Committees and to the Director of the Arizona State Library, Archives and Public Records.

· Requires that the report include the following:

1. Whether ADOT spends more in resources than it collects in fees when issuing a special license plate.

2. Whether the special license plate fees collected by ADOT cover the cost that ADOT incurs when issuing a special license plate.

3. The number of each special license plate that has been issued, how much revenue has been generated as a result of the issuance of the special license plates and the expense ADOT incurs in issuing the special license plates.

4. The employee costs associated with issuing special license plates.

5. The breakdown of the thirty-two thousand dollar cost to manufacture and implement a new special license plate.

6. Whether there is a balance in the State Highway Fund account of monies deposited relating to special organization plates, and if there is a balance, ADOT shall include an explanation of why there is a balance.

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Forty-seventh Legislature