Relating to special registration plates for motor vehicles, including plates displaying a decal approved by the department of veterans affairs or a decal of a nonprofit veterans’ organization

Under current law, the department of transportation (DOT) is authorized to issue special registration plates with a space to display an organization decal. The DOT does not issue the organization decal. Instead, the organization is responsible for producing, administering, and issuing the decal. An organization must submit an application to the DOT for approval to issue a decal. the purpose of the decal, all eligibility requirements for purchasing the decal, and the fees to be charged for the decal. To qualify for approval, the primary activity or interest of the organization must serve the community, contribute to the welfare of others, and cannot be discriminatory in its purpose, nature, activity, or name; the name and purpose of the organization cannot promote any specific product or brand name that is provided for sale; and the organization is required to be a nonprofit corporation which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code and organized under Iowa’s laws or authorized to do business within Iowa. This bill also authorizes an organization which is exempt under section 501(c)(19) of the Internal Revenue Code to apply for approval to issue an organization decal. To be exempt under section 501(c)(19), an organization must be a post or organization of past or present members of the United States armed forces, an auxiliary unit or society of such post or organization, or a trust or foundation for such post or organization. The bill also authorizes the department of veterans affairs to approve a decal representing any recognized military ribbon or badge. The DOT is then responsible for producing and issuing such decals.