Relating to motor vehicle special registration plate decals created by a nonprofit veterans’ organization or associated with military service, and providing fees

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. An application must include proof of eligibility to issue the decal, a color copy of the completed decal design, a clear and concise explanation of 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 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. In 2011, the general assembly authorized the DOT, in consultation with the adjutant general, to design combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge distinguishing processed emblem special registration plates. However, the DOT is required to receive 250 orders, including a start-up fee, for each plate before the DOT can produce or issue any of the registration plates. The bill strikes the provisions relating to the special registration plates and minimum order requirements and instead requires the DOT to design and issue separate and distinct decals representing the applicable badges, ribbons, and medals.34(13) (plates with space reserved for a decal). The DOT must issue two decals to an approved applicant and the fee for a pair of decals is $10. The fee is deposited into the road use tax fund and, each month, the treasurer of state must transfer from the statutory allocations fund the amount of fees received under the bill to the veterans license fee fund.34(20C). The DOT is required to make reasonable efforts to contact applicants who previously applied for and paid the required start-up fee. An applicant is eligible to receive a refund of the $20 fee, or receive a refund of $10 plus the applicable decals and plates as provided in the bill.