FEBRUARY 19, 2004
Secretary of State Terri Lynn Land today thanked lawmakers for passing a bill that prevents the unrestrained growth of fund-raising license plates and protects taxpayers from footing the bill for plates that may not sell. She called on Gov. Granholm to sign the measure into law.
"I applaud the Legislature for passing this measure, and thank Senator Bruce Patterson, who sponsored the bill, for his leadership," Land said. "It is important to note that this bill does not create any new plates. It makes the existing plate program more cost-effective and addresses concerns of law enforcement by maintaining standards for consistency in the look and design of all new plates. With their reflective features and standard design, all new plates will be easily read by the public and law enforcement."
Senate Bill 785 establishes a market-based approach that encourages sponsoring organizations to take a more realistic view of their plates’ chance for success. Sponsoring organizations will be responsible for a nonrefundable upfront payment of $15,000. Sales goals require a minimum of 2,000 plates to be sold the first year. Every year after, a minimum of 500 new plates must be sold. If these sales thresholds are not met, the plate will be discontinued.
This bill also repeals the original sunset date of Oct. 1, 2005, and allows current state-sponsored fund-raising license plates such as the university plates, and the popular "Proud To Be American" plate to continue.
"Michigan motorists love their fund-raising license plates," Land said. "In less than four years, more than a quarter of a million fund-raising plates have been purchased or renewed, raising more than $7 million to support our great universities and important causes. These plates give motorists the opportunity to support our universities and other important organizations and lessen the impact of a tight economy and budget cuts.
"They also allow Michigan motorists to support our nation, our state, our great universities and organizations that assist children, recognize veterans, protect the environment, and provide disaster relief and emergency services. Senate Bill 785 preserves funding for these worthy causes."
In October 2000, Michigan began selling fund-raising license plates to raise money for 15 state-supported universities. In April 2001, six additional plates were introduced to help fund state-supported causes.
Motorists pay an additional $35 over their annual vehicle registration fee to purchase a fund-raising license plate. That price includes:
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A $10 service fee for production and distribution
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A $25 contribution to the university, or important cause
The plate can be renewed annually for $10 in addition to the annual vehicle registration fee. The $10 goes to the university or cause. Individuals wishing to personalize the fund-raising plates may do so for an additional $30.
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