Bill Summary – FastDemocracy

Enrolled Copy                                                                                  S.B. 45
                                     LICENSE PLATE REVISIONS
                                           2024 GENERAL SESSION
                                                 STATE OF UTAH
                                         Chief Sponsor: Daniel McCay House Sponsor: Steve Eliason
 2
  LONG TITLE
  General Description:
      This bill amends provisions related to license plates, including requirements for display,
  fees, distribution, design, and funding.
  Highlighted Provisions:
      This bill:
      ▸ removes the requirement for the Motor Vehicle Division to issue two license plates in
  most circumstances;
      ▸ removes the requirement for an owner of a vehicle to display a license plate on the front
  of a vehicle;
      ▸ removes the requirement for two registration decals for both the month and year, and
  consolidates the registration information into one decal;
      ▸ requires a license plate design or redesign to be approved by the License Plate Design
  Review Board;
      ▸ requires an additional fee for personalized license plates;
      ▸ allows the Motor Vehicle Division to use funds in the License Plate Restricted Account
  for certain additional purposes;
      ▸ allows an institution of higher education to design the collegiate special group license
  plate for the institution, subject to approval by the license plate design review board;
      ▸ requires a person applying to create a new sponsored special group license plate to pay
  an additional fee to cover the costs of designing and administering the new license plate;
      ▸ requires the Motor Vehicle Division to transition to central distribution of license plates;
      ▸ amends certain design characteristics of license plates regarding embossing;
      ▸ prohibits a license plate cover and prohibits a license plate frame that obscures the
  license plate number or decals;
     S.B. 45                                                                             Enrolled Copy
       ▸ requires $1 from certain license plate fees to be deposited into the Motor Vehicle Safety
   Impact Restricted Account;
       ▸ allows law enforcement to use license plate reading technology to access information in
   the Utah Criminal Justice Information System for certain purposes;
       ▸ grants rulemaking authority to the State Tax Commission related to license plate
   administration; and
       ▸ makes technical changes.
   Money Appropriated in this Bill:
       None
   Other Special Clauses:
       This bill provides a special effective date.
   Utah Code Sections Affected:
   AMENDS:
       13-48-103 (Effective 01/01/25), as enacted by Laws of Utah 2011, Chapter 357
       41-1a-108 (Effective 01/01/25), as renumbered and amended by Laws of Utah 1992,
       Chapter 1
       41-1a-122 (Effective 01/01/25), as enacted by Laws of Utah 2023, Chapter 33
       41-1a-221 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 20
       41-1a-232 (Effective 01/01/25), as last amended by Laws of Utah 2021, Chapter 135
       41-1a-301 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 20
       41-1a-401 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapters 22, 33
       and 440
       41-1a-402 (Effective 07/01/24), as repealed and reenacted by Laws of Utah 2023, Chapter
       33
       41-1a-403 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapter 440
       41-1a-404 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapter 440
       41-1a-407 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 20
       41-1a-410 (Effective 01/01/25), as last amended by Laws of Utah 1993, Chapter 222
       41-1a-411 (Effective 01/01/25), as last amended by Laws of Utah 2020, Chapter 259
       41-1a-412 (Effective 01/01/25), as renumbered and amended by Laws of Utah 1992,
       Chapter 1
       41-1a-413 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 454
       41-1a-416 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapters 33, 219
       41-1a-419 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapter 33
                                                      -2-
     Enrolled Copy                                                                                        S.B. 45
      41-1a-701 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 454
      41-1a-703 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 454
      41-1a-704 (Effective 01/01/25), as last amended by Laws of Utah 2015, Chapter 412
      41-1a-1105 (Effective 01/01/25), as last amended by Laws of Utah 1998, Chapter 281
      41-1a-1211 (Effective 07/01/24), as last amended by Laws of Utah 2023, Chapter 33
      41-1a-1603 (Effective 01/01/25), as enacted by Laws of Utah 2023, Chapter 33
      41-1a-1604 (Effective 01/01/25), as enacted by Laws of Utah 2023, Chapter 33
      41-1a-1605 (Effective 01/01/25), as enacted by Laws of Utah 2023, Chapter 33
      41-3-105 (Effective 01/01/25), as last amended by Laws of Utah 2022, Chapter 259
      41-3-209 (Effective 01/01/25), as last amended by Laws of Utah 2018, Chapter 387
      41-6a-403 (Effective 01/01/25), as last amended by Laws of Utah 2008, Chapter 382
      41-6a-2002 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapter 524
      41-6a-2003 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapter 524
      41-12a-303 (Effective 01/01/25), as last amended by Laws of Utah 2001, Chapter 85
      41-12a-602 (Effective 01/01/25), as enacted by Laws of Utah 1985, Chapter 242
      53-8-214 (Effective 01/01/25), as last amended by Laws of Utah 2023, Chapters 33, 212
78
  Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 13-48-103 is amended to read:
        13-48-103 (Effective 01/01/25). Motor vehicle rental company -- Fee disclosure
  and collection requirements.
  (1) A motor vehicle rental company may include separately stated surcharges, fees, or
      charges in a rental agreement, including:
      (a) motor vehicle license cost recovery fees;
      (b) airport access fees;
      (c) airport concession fees; and
      (d) all applicable taxes.
  (2) If a motor vehicle rental company includes a motor vehicle license cost recovery fee as
      a separately stated charge in a rental transaction, the amount of the fee shall represent
      the motor vehicle rental company's good-faith estimate of the motor vehicle rental
      company's daily charge as calculated by the motor vehicle rental company to recover its
      actual total annual motor vehicle titling, registration, obtaining [license plates] a license
      plate, and motor vehicle inspection and emission costs.
  (3) If the total amount of the motor vehicle license cost recovery fees collected by a motor
                                                      -3-
      S.B. 45                                                                                      Enrolled Copy
       vehicle rental company under this section in any calendar year exceeds the motor vehicle
       rental company's actual costs to license, title, register, and obtain [license plates] a
       license plate for the motor vehicles and have the motor vehicles pass inspections and
       emissions for that calendar year, the motor vehicle rental company shall retain the
       excess amount and adjust the estimated average per motor vehicle license cost recovery
       fee for the following calendar year by the corresponding amount.
           Section 2. Section 41-1a-108 is amended to read:
           41-1a-108 (Effective 01/01/25). Division inspection of applications for
   registration, certificate of title, or license plate.
   (1) The division shall examine and determine the genuineness, regularity, and legality of
       each application for:
       (a) registration of a vehicle;
       (b) a certificate of title for a vehicle, vessel, or outboard motor;
       (c) [license plates] a license plate; and
       (d) any other request lawfully made to the division.
   (2) The division may investigate or require additional information on any application or
       request necessary to implement this chapter.
   (3) When the division is satisfied as to the genuineness, regularity, and legality of an
       application and that the applicant is entitled to register the vehicle and to the issuance of
       a certificate of title, the division shall register the vehicle, issue a certificate of title and
       issue [license plates] a license plate.
           Section 3. Section 41-1a-122 is amended to read:
           41-1a-122 (Effective 01/01/25). License Plate Restricted Account.
   (1) As used in this section, "account" means the License Plate Restricted Account created
       by this section.
   (2) There is created within the General Fund a restricted account known as the License
       Plate Restricted Account.
   (3) (a) The account shall be funded from the fees described in[ ] :
             (i) Subsection 41-1a-1201(3)[.] ;
             (ii) Subsection 41-1a-1604(2)(c); and
             (iii) other fees as provided in this chapter.
       (b) The fees described in Subsection (3)(a) shall be paid to the division, which shall
             deposit them in the account.
   (4) The Legislature shall appropriate the funds in the account to the commission to cover
                                                         -4-
      Enrolled Copy                                                                                     S.B. 45
      the costs of[ ] :
      (a) issuing license plates and decals[.] ;
      (b) processing applications for personalized license plates;
      (c) centrally distributing license plates; and
      (d) contracting with a vendor to design license plates.
  (5) (a) For fiscal year 2024-25, the commission may expend up to $100,000 for design
      and redesign of license plates.
      (b) Beginning with the 2025-26 fiscal year, and each fiscal year thereafter, the
          commission may expend up to $50,000 for the design and redesign of license plates.
  [(5)] (6) In accordance with Section 63J-1-602.1, appropriations made to the division from
      the account are nonlapsing.
        Section 4. Section 41-1a-221 is amended to read:
        41-1a-221 (Effective 01/01/25). Registration of vehicles of political subdivisions
  or state -- Expiration of registration -- Certification of information -- Failure to
  comply.
  (1) (a) An entity referred to in Subsection 41-1a-407(1) shall register each vehicle that it
      owns, operates, or leases.
      (b) This section does not apply to unmarked vehicles referred to in Section 41-1a-407.
  (2) A registration card and license plate issued to an entity under this section or Subsection
      41-1a-407(1) are in full force and effect until the vehicle is no longer owned or operated
      by that entity.
  (3) (a) If the owner of a vehicle subject to the provisions of this section transfers or
      assigns title or interest in the vehicle, the registration of that vehicle expires.
      (b) The transferor shall remove the license plate or plates and within 20 days from the
          date of transfer:
          (i) destroy the license plate or plates; or
          (ii) forward the license plate or plates to the division to be destroyed.
  (4) A violation of this section is an infraction.
        Section 5. Section 41-1a-232 is amended to read:
        41-1a-232 (Effective 01/01/25). Special fleet registration decals and license plates.
  (1) As used in this section:
      (a) "Rental agreement" has the same meaning as defined in Section 31A-22-311.
      (b) "Rental company" has the same meaning as defined in Section 31A-22-311.
      (c) "Rental fleet" means more than 25 motor vehicles that are:
                                                        -5-
      S.B. 45                                                                                   Enrolled Copy
             (i) owned by a rental company;
             (ii) offered for rental without a hired driver through a rental agreement; and
             (iii) designated by the registered owner of the motor vehicle as a rental fleet vehicle
                 at the time of registration.
   (2) (a) An owner that registers a motor vehicle under Section 41-1a-215 or 41-1a-215.5
       may obtain an alternative special registration card and registration [decals] decal for
       the license [plates] plate if the motor vehicle is:
             (i) (A) owned by a rental company; and
                 (B) maintained in the rental company's rental fleet; or
             (ii) owned or leased as part of a commercial fleet and is not owned or leased by a
                 rental company.
       (b) The registration card and registration [decals] decal for the license [plates] plate issued
             under Subsection (2)(a) are valid for the life of the motor vehicle while the motor
             vehicle is maintained in the rental fleet or is part of a commercial fleet.
   (3) (a) An owner that receives the alternative special registration card and registration [
       decals] decal for the license [plates] plate issued under this section shall:
             (i) renew the registration in accordance with Section 41-1a-216; and
             (ii) comply with all the prerequisites for registration or registration renewal under
                 Section 41-1a-203.
       (b) Notwithstanding the registration renewals requirement under Subsection 41-1a-216
             (2)(b), the alternative special registration card and registration [decals] decal issued
             under this section do not expire and are valid for the life of the motor vehicle while
             the motor vehicle is maintained in the rental fleet or is part of a commercial fleet.
   (4) If the registration renewal requirements under Subsection (3)(a) are not complied with,
       the registration is suspended or revoked.
           Section 6. Section 41-1a-301 is amended to read:
           41-1a-301 (Effective 01/01/25). Apportioned registration and licensing of
   interstate vehicles.
   (1) For purposes of this section, "registrant" means an owner or operator of one or more
       commercial vehicles operating in two or more jurisdictions applying for apportioned
       registration and licensing of a commercial vehicle.
   (2) (a) An owner or operator of a fleet of commercial vehicles based in this state and
       operating in two or more jurisdictions may register commercial vehicles for operation
       under the International Registration Plan or the Uniform Vehicle Registration
                                                         -6-
      Enrolled Copy                                                                                        S.B. 45
      Proration and Reciprocity Agreement by filing an application with the division.
      (b) The application shall include information that identifies the vehicle owner, the
          vehicle, the miles traveled in each jurisdiction, and other information pertinent to the
          registration of apportioned vehicles.
      (c) The division may not grant apportioned registration for vehicles operated exclusively
          in this state.
  (3) (a) If no operations were conducted during the preceding year, in computing fees due:
          (i) the application shall contain a statement of the proposed operations; and
          (ii) the division shall determine fees based on average per vehicle distance
               requirements under the International Registration Plan.
      (b) At renewal, the registrant shall use the actual mileage from the preceding year in
          computing fees due each jurisdiction.
  (4) The division shall determine the registration fee for apportioned vehicles as follows:
      (a) divide the in-jurisdiction miles by the total miles generated during the preceding year;
      (b) total the fees for each vehicle based on the fees prescribed in Section 41-1a-1206; and
      (c) multiply the sum obtained under Subsection (4)(b) by the quotient obtained under
          Subsection (4)(a).
  (5) The registrant may list trailers or semitrailers of apportioned fleets separately as "trailer
      fleets" on the application, with the fees paid according to the total distance those trailers
      were towed in all jurisdictions during the preceding year mileage reporting period.
  (6) (a) (i) When the registrant has paid the proper fees and cleared the property tax or
      in lieu fee under Section 41-1a-206 or 41-1a-207, the division shall issue a
      registration card and license plate for each unit listed on the application.
          (ii) The owner or operator shall carry an original registration in each vehicle at all
               times.
      (b) The owner or operator may carry original registration cards for trailers or semitrailers
          in the power unit.
      (c) (i) In lieu of a permanent registration card or license plate, the division may issue
          one temporary permit authorizing operation of new or unlicensed vehicles until
          the permanent registration is completed.
          (ii) Once a temporary permit is issued:
229