Senate File 90 - Introduced SENATE FILE 90 BY SALMON A BILL FOR An Act relating to special registration plates for motor 1 vehicles, including plates displaying a decal approved by 2 the department of veterans affairs or a decal of a nonprofit 3 veterans organization. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1278XS (5) 90 th/ns
S.F. 90 Section 1. Section 321.34, subsection 13, paragraph b, 1 subparagraph (1), subparagraph division (c), Code 2023, is 2 amended to read as follows: 3 (c) The organization is a nonprofit corporation which is 4 exempt from federal income taxation under section 501(c)(3) or 5 501(c)(19) of the Internal Revenue Code and is organized under 6 the laws of this state or authorized to do business within this 7 state. 8 Sec. 2. Section 321.34, subsection 13, paragraph f, Code 9 2023, is amended to read as follows: 10 f. A person shall not display a decal on a vehicle 11 registration plate other than a decal approved or issued by the 12 department. 13 Sec. 3. Section 321.34, subsection 13, Code 2023, is amended 14 by adding the following new paragraph: 15 NEW PARAGRAPH . 0g. The department of veterans affairs 16 may approve a decal representing any service ribbon or badge 17 awarded to a member of the armed forces of the United States. A 18 decal approved by the department of veterans affairs shall be 19 produced, and issued by the department of transportation for 20 display on registration plates as described in this subsection. 21 The department of veterans affairs may adopt rules pursuant to 22 chapter 17A as necessary to implement this paragraph. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanations substance by the members of the general assembly. 26 Under current law, the department of transportation (DOT) is 27 authorized to issue special registration plates with a space 28 to display an organization decal. The DOT does not issue the 29 organization decal. Instead, the organization is responsible 30 for producing, administering, and issuing the decal. 31 An organization must submit an application to the DOT 32 for approval to issue a decal. An application must include 33 proof of eligibility to issue the decal, a color copy of the 34 completed decal design, a clear and concise explanation of 35 -1- LSB 1278XS (5) 90 th/ns 1/ 2
S.F. 90 the purpose of the decal, all eligibility requirements for 1 purchasing the decal, and the fees to be charged for the decal. 2 To qualify for approval, the primary activity or interest 3 of the organization must serve the community, contribute to 4 the welfare of others, and cannot be discriminatory in its 5 purpose, nature, activity, or name; the name and purpose of the 6 organization cannot promote any specific product or brand name 7 that is provided for sale; and the organization is required to 8 be a nonprofit corporation which is exempt from taxation under 9 section 501(c)(3) of the Internal Revenue Code and organized 10 under Iowas laws or authorized to do business within Iowa. 11 This bill also authorizes an organization which is exempt 12 under section 501(c)(19) of the Internal Revenue Code to 13 apply for approval to issue an organization decal. To be 14 exempt under section 501(c)(19), an organization must be a 15 post or organization of past or present members of the United 16 States armed forces, an auxiliary unit or society of such post 17 or organization, or a trust or foundation for such post or 18 organization. 19 The bill also authorizes the department of veterans affairs 20 to approve a decal representing any recognized military ribbon 21 or badge. The DOT is then responsible for producing and 22 issuing such decals. 23 -2- LSB 1278XS (5) 90 th/ns 2/ 2