HB-5447, As Passed Senate, November 29, 2016

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5447

     A bill to amend 1949 PA 300, entitled

"Michigan vehicle code,"

by amending sections 811e and 811h (MCL 257.811e and 257.811h), as

amended by 2015 PA 78.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 811e. (1) The secretary of state may develop a fund-

raising plate as provided in this section.

     (2) A start-up fee of $15,000.00 in an amount equal to a 3-

year average of the cost to the secretary of state of developing a

new fund-raising plate, as calculated by the secretary of state on

January 1 of each year, shall be paid for any new fund-raising

plate authorized under this section. The secretary of state shall

use the 3 most recent preceding years in which it developed at

least 1 fund-raising plate when calculating the 3-year average

House Bill No. 5447 as amended November 29, 2016

required by this subsection. The secretary of state shall deposit

the fee in the transportation administration collection fund

through October 1, 2019 to be used for the cost of creating,

producing, and issuing fund-raising plates. If the fee described in

this subsection is not paid within 18 months after the effective

date of the public act that authorizes the development and issuance

of a fund-raising plate, the secretary of state shall not create,

produce, or issue the related fund-raising plate. A start-up fee

paid under this subsection is nonrefundable.

     (3) Not less than 3 years after the secretary of state first

issues 1 of the fund-raising plates as described in subsection (1)

and upon payment of $2,000.00, the Michigan university or other

person sponsoring that fund-raising plate may redesign it as

approved by the secretary of state. The secretary of state shall

deposit the payment required under this subsection in the

transportation administration collection fund created under section

810b through October 1, 2019 to be used for the cost of creating,

producing, and issuing fund-raising plates. A payment under this

subsection is nonrefundable.

     (4) The secretary of state may develop 1 or more limited term

registration plates to recognize a Michigan university or an

accomplishment or occasion of a Michigan university.

     (5) The Subject to section 811h(5), the secretary of state

may, at any 1 time, develop, produce, issue, or make available for

sale not more than <<20>> different state-sponsored fund-raising plates

as described in this section, and matching state-sponsored

collector plates as described in section 811g. This subsection does

not apply to a plate described in subsection (4).

     (6) The secretary of state shall not develop or issue a fund-

raising plate unless a public act authorizing the fund-raising

plate, at a minimum, does all of the following:

     (a) Identifies the purpose of the fund-raising plate.

     (b) Creates a nonprofit fund or designates an existing

nonprofit fund to receive the money raised through the sale of

fund-raising plates and matching collector plates. A nonprofit fund

described in this subdivision shall not expend money received from

the sale of a fund-raising plate and matching collector plate

outside of this state.

     (c) If a fund is created, names the person or entity

responsible for administering the fund.

     (7) The 2016 amendatory act that amended this section and

section 811hh shall be known and may be cited as the "Peter A.

Pettalia Memorial Act".

     Sec. 811h. (1) The secretary of state shall credit each

service fee collected under sections 811f and 811g to the

transportation administration collection fund created under section

810b. through October 1, 2019.

     (2) The secretary of state shall identify and segregate the

fund-raising donations collected under sections 811f and 811g into

separate accounts. The secretary of state shall create a separate

account for each fund-raising plate and its matching collector

plates plate issued or sold by the secretary of state.

     (3) As determined necessary by the secretary of state but not

more than 45 days after the end of each calendar quarter, the

secretary of state shall not less than once each calendar quarter

authorize the disbursement of fund-raising donations segregated

under subsection (2) and, independent from any disbursement under

subsection (2), report the number of each type of fund-raising and

collector plates issued, sold, or renewed to the following, as

appropriate:

     (a) The treasurer of a Michigan university.

     (b) The person or entity identified in a public act pursuant

to described in section 811e to administer a state-sponsored fund-

raising registration plate fund.

     (c) The sponsor of a fund-raising plate issued as prescribed

under section 811e that was developed and issued after January 1,

2007.

     (4) A fund-raising plate created after January 1, 2007 shall

meet or exceed the following sales goals:

     (a) In the first year, 2,000 plates.

     (b) In the second and each subsequent year for 5 years, 500

original plates.

     (c) For each subsequent consecutive 2-year period after the 5-

year period described in subdivision (b), 500 original plates.

     (5) The Except as otherwise provided in this subsection, the

secretary of state may shall cease to issue a fund-raising plate or

to issue a duplicate replacement of a fund-raising plate for use on

a vehicle if that fund-raising plate fails to meet a sales goal

described in subsection (4). If on the effective date of the 2016

amendatory act that amended this subdivision the number of fund-

raising plates available for sale exceeds the limit established in

section 811e(5), the secretary of state shall not cease to issue a

fund-raising plate that failed to meet a sales goal described in

subsection (4) if the failure occurred before April 1, 2017. The

secretary of state may shall also cease to sell a collector plate

that matches the discontinued fund-raising plate. However, the

secretary of state may continue to renew fund-raising plates

already issued and collect the renewal fund-raising donation for

those plates.

     (6) The state of Michigan, through the secretary of state,

shall own all right, title, and interest in all fund-raising plates

and collector plates, including the right to use, reproduce, or

distribute a fund-raising or collector plate or the image of a

fund-raising or collector plate in any form. The secretary of state

may authorize the commercial or other use of a fund-raising or

collector plate design, logo, or image if written consent is

obtained from the pertinent Michigan university or other person

that sponsored a fund-raising plate. However, the secretary of

state shall not authorize the commercial or other use of a fund-

raising or collector plate under this section unless the user first

agrees in writing to the terms and conditions that the secretary of

state considers necessary. Those terms and conditions may include

the payment of royalty fees to 1 or more of the following:

     (a) This state.

     (b) A Michigan university.

     (c) Another person that sponsored a fund-raising plate.

     (7) The secretary of state shall credit a royalty fee paid to

this state under a written agreement described in subsection (6) to

the transportation administration collection fund created under

section 810b. through October 1, 2019.

     (8) Beginning not later than February 1, 2007, and annually

after that, an organization receiving fund-raising donations

disbursed under this section shall report to the state treasurer. A

report under this subsection shall include a summary of

expenditures during the preceding year of the money received under

this section.

     Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.