HB 335-FN-A – AS INTRODUCED
2011 SESSION
03/09
HOUSE BILL 335-FN-A
AN ACT establishing multi-use number plates.
SPONSORS: Rep. Rhodes, Hills 22; Rep. Hinch, Hills 19; Rep. Umberger, Carr 1; Rep. Williams, Merr 11
This bill establishes multi-use number plates, which entitle eligible entities to receive a portion of the additional fee charged for the plates.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0032
03/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT establishing multi-use number plates.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Multi-Use Plates. Amend RSA by inserting after chapter 261-A the following new chapter:
CHAPTER 261-B
261-B:1 Multi-Use Plates Authorized. The department shall issue multi-use plates upon receipt of an application meeting the requirements of RSA 261-B:3. Except as otherwise provided in this chapter, multi-use plates shall have the same effect and be issued in the same manner as other number plates. Multi-use number plates shall include the design submitted by the applicant and bear a registration number beginning with a letter of the alphabet designated by the director for the applicant. Multi-use number plates shall retain the “live free or die” logo. The department shall not issue vanity multi-use plates.
261-B:2 Eligibility. The department shall only accept an application for multi-use plates from an agency of the state of New Hampshire or an entity that is determined by the Internal Revenue Service to be a tax exempt organization pursuant to section 501(c)(3) of the Internal Revenue Code and registered with the attorney general.
261-B:3 Application.
I. An application for multi-use plates shall provide:
(a) Verification of the applicant’s eligibility under RSA 261-B:2.
(b) A design to be placed on the applicant’s plate series, which shall occupy an area no more than 3 inches wide by 4 inches high on the plate surface.
(c) The owner’s name and vehicle registration information for at least 1,000 vehicles, which will be issued the initial multi-use plates in the applicant’s plate series.
(d) Sixty dollars for each vehicle listed pursuant to subparagraph (c).
II. After successful submission of the application information under paragraph I, the applicant shall verify annually the applicant’s continuing eligibility. Failure to verify eligibility shall result in the termination of the applicant’s multi-use plate series.
261-B:4 Issuance and Renewal; Fees.
I.(a) The fee for multi-use number plates shall be $60 per year per set, which shall be in addition to any other registration and number plate fees. Plates issued for vehicles listed by the applicant under RSA 261-B:3, I(c) shall be exempt from this fee for the first year.
(b) The department shall retain from fees collected under this chapter an amount as is necessary to recover production and administrative costs as approved by the fiscal committee of the general court. The remaining funds shall be paid to the state treasurer, who shall pay 60 percent of such funds to the applicant entity and 40 percent to the highway fund.
II. Multi-use plates shall be issued only upon application for a new registration or renewal of an existing registration. Persons shall not be permitted to transfer an existing registration to a multi-use plate registration except during the registration renewal month.
III. Multi-use plates shall only be issued by the division and shall not be available from municipal clerks or other agents of the division.
IV. Multi-use plates may be used on passenger motor vehicles and recreation vehicles.
2 Effective Date. This act shall take effect July 1, 2011.
LBAO
11-0032
Revised 02/01/11
HB 335 FISCAL NOTE
AN ACT establishing multi-use number plates.
FISCAL IMPACT:
The Department of Safety states this bill may increase state restricted revenue and expenditures by an indeterminable amount in FY 2012 and each year thereafter, and increase local revenue by an indeterminable amount in FY 2013 and each year thereafter. There will be no fiscal impact on county revenue, or county and local expenditures.
METHODOLOGY:
The Department of Safety states this bill establishes multi-use plates to be issued in a minimum block of 1,000 sets of plates to eligible tax exempt organizations and state agencies. Entities must submit an application with verification of their eligibility, a 3" x 4" design to be applied to the plates, a list containing the owner's name and vehicle registration information for at least 1,000 vehicles to be issued, and a fee of $60 for each owner listed. The multi-use plate fee of $60 is an annual fee and is in addition to any other registration or plate fees. The Department cannot estimate the number of entities that will wish to issue these plates or the number of 1,000-plate blocks each will request. For each block of 1,000 plates, the Department assumes $60,000 of annual gross revenue. Of the proposed fees, the Department shall retain an amount necessary to recover production and administration costs as approved by the fiscal committee of the general court. The remaining funds shall be paid to the state treasurer, who shall pay 60% to the applicant entity and 40% to the highway fund.
For this new plate type, the Department assumes a one-time cost of $107,100 for 612 hours of consultant work to make the necessary programming changes to its system. For each run of 1,000 plates, the Department also assumes the following costs: 1 roll of sheeting for $2,000, emblem design to attach to each plate for $10,000 (1,000 sets x 2 plates per set x $5.00 cost), and mailing costs of $2,410 (1,000 pairs x $2.41 mailing cost), for a total cost of each plate run of $14,410.
Once cost recovery of the one-time programming charges is complete, applicant entities could expect to receive at least $27,354 annually ($60,000 annual revenue - $14,410 cost per run = $45,590 x 60% = $27,354), with the state highway fund receiving the remaining $18,326 ($45,590 x 40%) of revenue. Depending on the number of renewals in each year, the annual revenue per 1,000 plate block could reach $36,000 ($60,000 x 60%) to the applicant entity, and $24,000 ($60,000 x 40%) to the highway fund, but those plateholders who turn in the special plates and those who wish to purchase the special plates would result in net revenues somewhere in between.
The Department points out these estimates assume that one multi-use plate type will be manufactured and individual emblems will be attached to that one plate type. If a new plate type needs to be manufactured for each eligible organization that applies, state expenditures would increase significantly due to the programming consultant costs. Also, the Department states, pursuant to RSA 235:23, highway fund expenditures for local aid would increase by 12% of any amount recorded in the highway fund as net revenue for this program. Local revenues would increase by a corresponding amount.