Relating to personalized fire fighter and emergency medical services special registration plates, and providing fees

Description

House File 2579 authorizes the Department of Transportation (DOT) to issue personalized fire fighter and emergency medical services (EMS) registration plates, in accordance with Iowa Code section 321.34. The fee for personalized plates is $25, and the annual registration fee is $5. Due to the plates’ respective designs, the Bill limits the number of characters on a personalized fire fighter or EMS plate to five numerals and letters. The Bill makes further changes to align plate provisions with the respective language used for other similar plates.

Background

Under current law, an owner of a motor vehicle who is a current or retired member of a paid or volunteer fire department may order fire fighter special registration plates signifying the owner is an active or retired fire fighter; however, the individual may not order personalized plates. The plates are designed by the DOT in cooperation with representatives designated by the Iowa Firefighters Association. Currently, there are a combined 15,000 fire fighter and EMS license plates. Additional fees from personalized plates are deposited into the Road Use Tax Fund (RUTF) pursuant to Iowa Code section 321.34. Personalized plates are subject to an annual renewal registration fee of $5 in addition to the regular annual registration fee. The RUTF is the primary source of funding for construction, maintenance, and administration of Iowa’s highways. The RUTF consists primarily of revenues that are constitutionally protected, including revenues for all license plates. The RUTF revenue is collected by the State Treasurer and distributed by formula to the DOT, counties, and cities. Due to the constitutional protection of certain RUTF revenues, direct transfers from the RUTF for nonroad programs cannot occur. The Statutory Allocation Fund (SAF) consists of driver’s license fees and trailer registration fees. Truck registration fees are based on the weight of the vehicle as determined by Iowa Code section 321.122. After certain statutory transfers, including offsetting transfers of the special plate revenues, are made to other accounts, the remainder of the SAF balance is transferred to the RUTF at the end of the fiscal year.

Iowa Code section 312.2(3) authorizes an annual allocation from the RUTF sufficient to pay the cost of producing license plates.

Assumptions

• Approximately 20.0% of EMS and fire fighter plates will be exchanged for personalized plates, totaling 3,010 personalized plates.
• Production of 3,010 plates will cost $17,000, at a per plate cost of $5.88 and will be paid from the RUTF.
• The reissuance of personalized plates permitted under the Bill will increase revenue to the Paul Ryan Memorial Fire Fighter Safety Training Fund and Emergency Medical Services Fund by $75,000 and will be offset by a matching allocation of $75,000 from the SAF to the Funds. This allocation will decrease the year-end balance transferred from the SAF to the RUTF.
• Personalized license plate sales deposited into the RUTF are estimated to be approximately $75,000 in FY 2025 and $8,000 each year thereafter.

Fiscal Impact

The estimated fiscal impact of HF 2579 is a one-time cost of $17,000 to the RUTF. Figure 1 shows the total revenue estimated to result from the personalized license plates created in the Bill.

Figure 1 — Estimated Total Fund Revenue for HF 2579

Sources

• Department of Transportation
• Legislative Services Agency calculations