House Bill 457

Chair's Name: Tom Rice

Committee: Motor Vehicles

House Sponsor: Tom Rice 

HB 457 rewrites the provisions dealing with special license plates, putting in place new administrative provisions. The code section adds specifics on the design of the special plates, requires the nonprofit corporations receiving funds from the plates to provide audits of the funds, and makes changes to the application process for new plates. In order for a new plate to be created, a $50,000 bond from the sponsor must accompany the application. Once the required 1000 individual applications are received requesting the new plate, the Revenue Commissioner will give the sponsor a letter of certification to the sponsor and the sponsor may seek the legislation necessary to authorize the new plate.

The committee substitute received a Do Pass recommendation from the Motor Vehicles Committee and comes to the House Floor under the Open Rule. 

Chairman Rice�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

There is an opportunity to reduce the number of tag bills that come to the legislative by moving the qualification process to DOR.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

Reduction of legislative workload and a much better ability to determine the validity of a 501 C3 recipient of shared tag revenue funds.

THIS LEGISLATION:

• Reduces the Size of Government:

It will remove the tag process in the legislature and add efficiency by having DOR validate that it meet the 1000 tag minimum and is a valid 501 C3 before it comes to the legislature for approval

• Other:

Allows organizations to apply for a special tag at any time in the year and start taking applications immediately.