Bill Summary – FastDemocracy

Fiscal Note
                                        Fiscal Services Division
HF 2579 – Personalized License Plates, Fire Fighters and Emergency Medical Services
(LSB5770HV.1)
Staff Contact: Garry Martin (515.281.4611) garry.martin@legis.iowa.gov
Fiscal Note Version – Final Action
Description
House File 2579 authorizes the Department of Transportation (DOT) to issue personalized
fire fighter and emergency medical services (EMS) registration plates, in accordance with Iowa
Code section 321.34. The fee for personalized plates is $25, and the annual registration fee is
$5. Due to the plates’ respective designs, the Bill limits the number of characters on a
personalized fire fighter or EMS plate to five numerals and letters. The Bill makes further
changes to align plate provisions with the respective language used for other similar plates.
Background
Under current law, an owner of a motor vehicle who is a current or retired member of a paid or
volunteer fire department may order fire fighter special registration plates signifying the owner is
an active or retired fire fighter; however, the individual may not order personalized plates. The
plates are designed by the DOT in cooperation with representatives designated by the Iowa
Firefighters Association. Currently, there are a combined 15,000 fire fighter and EMS license
plates. Additional fees from personalized plates are deposited into the Road Use Tax Fund
(RUTF) pursuant to Iowa Code section 321.34. Personalized plates are subject to an annual
renewal registration fee of $5 in addition to the regular annual registration fee.
The RUTF is the primary source of funding for construction, maintenance, and administration of
Iowa’s highways. The RUTF consists primarily of revenues that are constitutionally protected,
including revenues for all license plates. The RUTF revenue is collected by the State Treasurer
and distributed by formula to the DOT, counties, and cities. Due to the constitutional protection
of certain RUTF revenues, direct transfers from the RUTF for nonroad programs cannot occur.
The Statutory Allocation Fund (SAF) consists of driver’s license fees and trailer registration fees.
Truck registration fees are based on the weight of the vehicle as determined by Iowa Code
section 321.122. After certain statutory transfers, including offsetting transfers of the special
plate revenues, are made to other accounts, the remainder of the SAF balance is transferred to
the RUTF at the end of the fiscal year.
Iowa Code section 312.2(3) authorizes an annual allocation from the RUTF sufficient to pay the
cost of producing license plates.
Assumptions
• Approximately 20.0% of EMS and fire fighter plates will be exchanged for personalized
   plates, totaling 3,010 personalized plates.
• Production of 3,010 plates will cost $17,000, at a per plate cost of $5.88 and will be paid
   from the RUTF.
• The reissuance of personalized plates permitted under the Bill will increase revenue to the
   Paul Ryan Memorial Fire Fighter Safety Training Fund and Emergency Medical Services
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    Fund by $75,000 and will be offset by a matching allocation of $75,000 from the SAF to the
    Funds. This allocation will decrease the year-end balance transferred from the SAF to the
    RUTF.
•   Personalized license plate sales deposited into the RUTF are estimated to be approximately
    $75,000 in FY 2025 and $8,000 each year thereafter.
Fiscal Impact
The estimated fiscal impact of HF 2579 is a one-time cost of $17,000 to the RUTF.
Figure 1 shows the total revenue estimated to result from the personalized license plates
created in the Bill.
                       Figure 1 — Estimated Total Fund Revenue for HF 2579
                               Fund                                             FY 2025         FY 2026
         Paul Ryan Memorial Fire Fighter Safety Training Fund                  $ 69,000         $ 7,000
         Emergency Medical Services Fund                                            6,000            600
         Road Use Tax Fund                                                         75,000          8,000
                               Total                                           $ 150,000        $ 15,600
        *Numbers may not be exact due to rounding.
Sources
Department of Transportation
Legislative Services Agency calculations
                                                                               /s/ Jennifer Acton
                                                                                 April 18, 2024
Doc ID 1449030
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
                                                     www.legis.iowa.gov
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Statutes affected: 
Introduced: 321.34
Enrolled: 321.34