Florida Specialty Plates

Transcription

1 Florida Specialty Plates Independent Interim Report March 1, 2010 Prepared by Florida Specialty License Plate Organizations 1 1. Issue Description FLORIDA S SPECIALTY LICENSE PLATE PROGRAM Since 1986, Florida s specialty license plate program has proven to be a stellar example of how public/private cooperation can be used for the public benefit. The issue is how to assure the continued success of Florida s specialty license plate program that is the envy of other states, is loved and used by over 1.6 million Floridians annually and has raised over $450 million for worthy causes and programs since inception 2. At a time when the recession is hitting Florida s philanthropic community, state agencies, and each and every citizen of Florida, the specialty license plate program must be bolstered and not mistakenly harmed, so it can continue to benefit hundreds of charitable organizations, state agencies and colleges and provide invaluable programs and services that would otherwise remain unfunded and unavailable in Florida. 2. Overview Florida Specialty license plates support a wealth of causes and organizations. They are a matter of state pride. Each specialty plate has a unique design relevant to the cause or organization it supports. Some are actual works of art and were designed by well-known modern-day artists. Specialty license plates are available to any owner or lessee of a motor vehicle who is willing to pay an additional fee ( annual use fee ) for the privilege. Annual use fees range from $15 to $25, paid in addition to the required vehicle registration fees, that are collected by the county tax collectors and the Department of Highway Safety and Motor Vehicles ( DHSMV ) and then distributed by the Department of Revenue directly to the organization in support of the particular cause or charity signified in the plate s design and designated by statute. Specialty license plate ( SLP ) sales generated over $37 million in annual use fee revenues during the 2009 Fiscal Year (July 2008-June 2009) 3. Since the program s creation by the Florida Legislature in 1986, more than $450 million in annual use fees has been collected. 1 This document was prepared with the collaboration of representatives of most of the organizations that participate in the Specialty License Plate Program and was compiled by Michael Towner (561) and Martin Boire (386) Source: DHSMV 3 Source: DHSMV Page 1 of 19

2 The Specialty License Plate Program has always been self-funded, with a $60, start-up fee for each plate/organization and an administrative fee paid by them in advance each year 4, calculated from their anticipated revenue. The state has already collected more than $3 million for FY alone. New vehicle registration fees imposed as of Sept 1, include increased fees for SLP purchasers who must now pay an additional $33 to make a tax-deductible SLP contribution of $15 to $25. This fee increase is responsible for an unprecedented decrease in new SLP sales of 67% 6, which may result in SLP organizations losing an estimated $57 million over the next 10 years just from the reduction in new SLP sales 7. Prior to the increased fees, University of Florida and Florida State University raised more than $65 million for academic scholarships and the armed services plates generated over $16 million for veterans programs. If not immediately corrected, the state of Florida may lose an additional $10 million in the next ten years as a direct result of reduced new SLP sales, despite the increased registration fees 8. During the 2008 Session, the Legislature enacted SB 1992 which imposed a moratorium on the creation of any further specialty plates, apparently as a result of a misperception that too many plates were being created. This moratorium became effective from July 1, 2008 to July 1, 2011, but contained an exception allowing those applications that were already pending to proceed ahead. There were twelve organizations that met the moratorium exceptions; however, only one was enacted during the 2009 session: The University of Miami - Center for Autism and Related Disabilities ( Autism Awareness ) specialty license plate 9. Organizations that met moratorium exceptions, but have not yet been legislatively authorized are: Coalition for Renewable Energy Solutions ( Go Green ), East Coast Surfing Hall of Fame and Museum ( Let s Go Surfing ), Florida Horse Park ( Discover Florida s Horses ), Fraternal Order of Police ( Fraternal Order of Police ), Guy Harvey Ocean Foundation ( Catch Me Release Me ), Surfing Evolution and Preservation ( Endless Summer ), St. Johns River Alliance ( St. Johns River ), Florida Biodiversity Foundation ( Save Wild Florida ), Sons of Confederate Veterans ( Confederate Heritage ), and Toomey Foundation for the Natural Sciences ( Preserving the Past ) and Toomey Foundation for the Natural Sciences ( Trinity ). Each of these organizations paid a $60, application fee to DHSMV. Faith & Teaching, Inc. ( I Believe ) had initially filed an application and paid the $60, deposit but failed to correct a defective survey prior to the moratorium exception date and then requested a full refund of their application fee, withdrawing its application. 4 s , F.S. and Procedure RS-20, Creation of a New Specialty License Plate 5 CS/CS/SB 1778 introduced by Policy and Steering Committee on Ways and Means, Transportation and Economic Development Appropriations Committee and Senator Fasano 6 Comparing new plate sales of November, December 2009, January 2010 to November, December 2008, January $5,735, loss of revenue for $1,046, annually , L.O.F. Page 2 of 19

3 As of February 26, 2010, Coalition for Renewable Energy Solutions ( Go Green ) has bills filed in the Senate (SB 1986 Ring) and House (HB 1043 Skidmore); Guy Harvey Ocean Foundation ( Catch Me Release Me ) has bills filed in the Senate (SB 736, Garcia) and House (HB 351 Patterson); Surfing Evolution and Preservation ( Endless Summer ) has bills filed in the Senate (SB 170, Altman) and House (HB 83 Crisafulli); St. Johns River Alliance ( St. Johns River ) has bills filed in the Senate (SB 304, Jones) and House (HB 53 Lopez-Cantera); Fraternal Order of Police ( Fraternal Order of Police ) has bills filed in the Senate (SB 978, Fasano) and House (HB 289, Brandenburg); Toomey Foundation for the Natural Sciences ( Preserving the Past ) and Toomey Foundation for the Natural Sciences ( Trinity ) have a bill filed in the Senate (SB 1522, Baker). East Coast Surfing Hall of Fame and Museum ( Let s Go Surfing ), Florida Horse Park ( Discover Florida s Horses ), Florida Biodiversity Foundation ( Save Wild Florida ) and Sons of Confederate Veterans ( Confederate Heritage ) do not have any bills filed. Organizations that did not comply with application requirements also have bills pending: Faith & Teaching, Inc. ( I Believe ), Children First Florida, Inc. ( Children First ) and In God We Trust Foundation, Inc. ( In God We Trust motorcycle license plate) have been filed in the Senate (SB 1522, Baker). Veterans of Foreign Wars ( Veterans of Foreign Wars ) has been filed in the Senate (SB 1478, Baker); Korean War Veterans has been filed in the Senate (SB 1526, Deutch). A holding bill has also been filed by Senator Andy Gardiner (SB 898), expressing the legislative intent to revise laws relating to specialty license plates. According to s (8) (a), F.S. (which was amended by SB 2020), DHSMV must discontinue the issuance of an approved specialty plate if the number of valid specialty license plates in use falls below 1,000 plates for at least 12 consecutive months. The reasoning behind this was that underperforming specialty plates cause a fiscal burden to the state. However, organizations that had plates approved after complying with all of the application requirements actually paid $36,900 in advance to purchase the first order of 15,000 plates, as part of the $60, application fee. To date, four plates have been discontinued for lack of sales: the Girl Scouts plate, the Orlando Predators plate, the Tampa Bay Storm plate and the Corrections Foundation plate (which was only created in October, 2007). An exemption for Florida colleges was enacted subsequent to SB 2020, 22 of which were created by the Florida Legislature in 2002 and exempted from paying the $60, application fee. In 2008, 13 Florida colleges sold less than 1,000 plates, however if the SLP program was promoted and made more accessible, each of these colleges and universities could also add invaluable funds for scholarships from the program. Since the private charity sector, government agencies and colleges are responsible for administering the many programs funded by the revenue, and since many of the organizations had to provide the initial funding for the creation of their specialty plate and are responsible for ongoing maintenance of the program, at no cost to the state, the voice and recommendations of the participants should be afforded great weight in the proper maintenance and enhancement of the specialty license plate program. Page 3 of 19

4 3. Establishing a Specialty License Plate Section , F.S., specifies several requirements that must be met by an organization seeking authorization to establish a new specialty license plate, which has been embodied by DHSMV in written procedures. These requirements are among the strictest in the nation and involve the following: 1. A request for the particular license plate with a description of the proposed plate in specific terms, including a sample design plate conforming to the specifications set by DHSMV. The design could cost the organization as much as $25, The results of a scientific sample survey of Florida motor vehicle owners indicating that at least 30,000 motor vehicle owners intend to purchase the proposed specialty license plate at the increased costs. The Auditor General is required to validate the methodology, results, and any evaluation by DHSMV of the scientific sample survey prior to the submission of the specialty license plate for approval by the Legislature. Such surveys have cost organizations up to $75, An application fee of $60,000.00, to defray DHSMV s cost for reviewing the application and developing the specialty license plate, if authorized. 4. A marketing strategy outlining both the short and long term marketing plans and a financial analysis outlining the anticipated revenue and the planned expenditures of the revenue from the requested specialty license plate. The required documentation and fees must be submitted at least 90 days before the convening of the next regular session of the Florida Legislature. Once these requirements have been met, DHSMV notifies legislative staff, and the organization applying for the plate then has to incur further expense in seeking legislative approval. On occasion, the Legislature has departed from the statutory requirements and approved proposed specialty plates despite the fact that they have not satisfied the pre-approval requirements. During the 2001 Special Session B, in response to the events of September 11, 2001, the Legislature created the American Red Cross and the United We Stand specialty plates in this manner. Still other plates were created without meeting pre-approval criteria, and without subsequent legislative action, through a time-limited statutory exemption. This exemption applies to collegiate license plates, and it has been amended over the years to apply the exemption to more and more colleges and universities. A number of specialty plates have failed to pass in one year and have had to seek legislative approval in subsequent sessions, incurring additional expenses. If a specialty license plate is approved by law, the organization must submit a proposed art design for the specialty plate to DHSMV no later than 60 days after the act becomes a law. If the specialty license plate is not approved by the Legislature, the $60, application fee is refunded to the requesting organization. If the Legislature authorizes a new specialty plate, DHSMV initiates new programming at their data center expanding and programming the necessary identifiers in their database to accommodate Page 4 of 19

5 the new license plate. During programming, the requesting organization or entity submits the art design to DHSMV to be reviewed for compliance with license plate specifications. Once the department completes this review, it delivers the art work to the House and Senate bill sponsors for their initial approval. Once the art work is approved by the legislative sponsors, DHSMV delivers it to 3-M Corporation where sample plates are prepared and sent back. 3M Corporation is the vendor that supplies the retro reflective laminate applied to Florida's license plates. After 3-M delivers sample plates to DHSMV, they are approved and submitted to PRIDE at Union Correctional Institution in Starke, Florida, for embossing and printing. When the samples are ready, DHSMV sends copies to the sponsoring organization and the primary bill sponsors for final approval. If anyone objects, the process starts over. PRIDE is the nonprofit corporation that leases and manages the correctional work programs of the Department of Corrections (DOC). The corporation is not an agency and leases all of DOC's work programs exclusively. Once the department, the organization and the bill sponsors give their approval, the plate design must next be approved by the Governor and Cabinet acting in its capacity as the head of DHSMV. After final approval, a copy of the plate is submitted to 3-M who manufactures the sheeting for delivery to PRIDE. PRIDE uses the sheeting to manufacture the specialty plates and delivers them directly to the county tag agencies. PRIDE manufactures both standard and specialty license plates using an embossing process. This is the process by which the alpha-numeric field is raised in the metal substrate, and each plate receives its unique identifier. Processes utilizing embossing require separate steps for preparing the graphic background, pairing each plate with an alpha-numeric identifier, applying that identifier to the blank, and roll-coating the plates to paint the raised numbers and letters. In Florida, computer technology is used to manage this process by assigning a specific license plate number to a particular blank. In some states, license plates are not embossed, but are made with a digital printing system that results in a flat plate. These digital methods can be used to quickly produce almost any conceivable graphic background. Digitally printed flat plates may be a simple monochromatic printing of the alphanumeric identifier on a pre-printed or plain background, or they may have the entire background image and identification number printed with a multicolor graphics printing system. The digital printing process may eliminate the need for different long-run, short-run, and screen printing systems for different plates, and it allows for the separate steps of graphic background design, and alpha-numeric identification and assignment to be combined. DHSMV pays PRIDE $1.38 for each standard plate, and $2.46 for each specialty license plate. 10 A plate authorized by the Legislature may not be ready for sale for up to six months after approval by the Cabinet. During the interim from enactment to sales, considerable agency staff time is spent in the development process. DHSMV estimates that its cost alone for programming and designing specialty plates is approximately $22,560 per new specialty plate. It costs an additional $36,900 to purchase the first order of 15,000 plates. These cost estimates form the basis 10 House of Representatives Staff Analysis HB 1049, April 16, 2004 Page 5 of 19

6 for the $60,000 application fee paid by organizations seeking a new specialty license plate. These costs may now be reduced by the current move by DHSMV to a digital printing process. The investment by an organization in both capital and effort is very extensive and organizations do not make this decision without properly analyzing the benefits of the program. It costs some organizations around $250, to establish their program, particularly when they have completed the application process but they are unsuccessful in obtaining legislative approval at the first attempt. Only a portion of these expenses may be reimbursed and such reimbursement has to come from the initial sales of their own specialty license plate. There are now 113 specialty license plates. 45 of the specialty license plates charge a voluntary contribution user fee of $25. Save Our Seas and Aquaculture license plates are $25, except for an owner purchasing plates for more than 10 vehicles registered to that owner, the fee is $10 per plate. Sea Turtle license plate is $23 and Fish Florida charges $22. Invest in Children, Florida Arts, Florida Agricultural, Police Athletic League, Boy Scouts of America (now delisted), Protect Wild Dolphins, Everglades River of Grass, Choose Life, Florida Firefighters and Police Benevolent Association license plates charge $20. Florida Salutes Veterans, Florida United States Olympic Committee, Florida Special Olympics, Florida Indian River Lagoon, Tampa Bay Estuary, Florida Wildflower, United States Marine Corps, Share the Road and Military Services license plates charge $ The Specialty License Plate Program is Totally Self-Funded An initial application fee of $60, is paid by the requesting organization to defray DHSMV s cost for reviewing the application and developing the specialty license plate, if authorized. In some prior years there have been more than ten applications submitted. This year there are ten applications pending. The organization is also responsible for designing the license plate to comply with 3M and state specifications. When a registered vehicle owner purchases a specialty license plate, they have to pay an additional specialty plate processing fee ($5.00) and a new plate or plate switching fee ($28.00). The actual cost of manufacturing a license plate is $1.57, the cost of which is incorporated into the annual registration fee. The actual total cost to issue a registration title is $2.87. DHSMV is authorized to annually retain the first proceeds derived from the annual use fees collected in an amount sufficient to defray each specialty plate s pro rata share of DHSMV s costs directly related to issuing the specialty license plate. These fees are deducted in July/August of each year and are taken directly from the revenue generated by the sales of specialty license plates before funds are released to the organizations. This is calculated from their anticipated revenue equaling that of the previous year, multiplied by the calculated cost of Page 6 of 19

7 $1.87 to manufacture the plate 11. The state has already collected $3,019, for FY alone. Organizations are responsible for their own marketing and promotion of their specialty license plates and the causes benefiting from the specialty plates and are responsible for managing the programs and for the costs involved in administering and for filing annual audits which are submitted to the state on an annual basis. 5. Benefits of the Specialty License Plate Program Sales of specialty license plates generated over $37 million in annual use fee revenues during the 2009 Fiscal Year (July 2008-June 2009). Since the program s inception, DHSMV has collected annual use fees for the specialty plates totaling more than $450 million. The beneficiaries of the specialty license plate program are the citizens of the state of Florida. The following receive funding directly from the program and there are thousands more that receive benefits from those organizations: Astronauts Memorial Foundation, Inc., American Red Cross Chapter of Central Florida, Florida State University, University of Florida, Caribbean Conservation Corporation, Florida Firefighters Charities, Inc., Agriculture in the Classroom, Inc., Fish and Wildlife Conservation Commission, Florida Police Athletic League, Inc., Everglades Trust Fund (South Florida Water Management District), Guy Harvey Research Institute of the Nova Southeastern University Oceanographic Center, Wildlife Foundation of Florida, Inc., Professional Sports Development Trust Fund (Fla. Office of Tourism, Trade, and Economic Development), Florida Breast Cancer Coalition Research Foundation, Florida Panther Research and Management Trust Fund (Fla. Fish and Wildlife Conservation Commission), University of Central Florida, University of Miami, University of North Florida, University of South Florida, Florida Bar Foundation, Inc., Florida Sports Foundation (Fla. Office of Tourism, Trade, and Economic Development), Florida State Soccer Association, Florida United States Olympic Committee (Fla. Office of Tourism, Trade, and Economic Development), Florida Wildflower Foundation, Inc., Florida Youth Soccer Association, Support Our Troops, Inc., Suwannee County Art Council-Agency, Suwannee County School Boards-Districts, Dade Amateur Golf Association, Inc., Miami-Dade County School Boards- Districts, Florida Association of Food Banks, Inc., University of Tampa, Florida Heart Research Foundation, Inc., Florida Hospices and Palliative Care, Inc., University of West Florida, Florida Police Benevolent Association Heart Fund, Inc., Florida Sheriffs Youth Ranches, Inc., American Red Cross of Central Florida, Orlando, American Red Cross of Greater Miami & the Keys, Miami, American Red Cross of Northwest Florida, Crestview, Achievement and Rehabilitation Centers, Inc., Alabama-Florida Scouting Council, Alachua County Art Council-Agency, Alachua County School Boards-Districts, Baker County Art Council-Agency, Baker County School Boards-Districts, Barry University, Hubbs Florida Ocean Fund, Inc., Humane Society of the United States, In God We Trust Foundation, Inc., Bay County Art Council-Agency, Bay County School Boards-Districts, Bethune-Cookman College, Bike Florida, Inc., U.S. Department of Transportation, Union County Art Council-Agency, Union County School Boards-Districts, United States Olympic Committee, Putnam County School Boards-Districts, Rewards for Justice Fund, Jefferson County School Boards-Districts, Juvenile Crime Prevention and Early Intervention Trust Fund (Fla. Department of Juvenile Justice), Keep Kids Drug-Free Foundation, Inc., Bradford County Art Council-Agency, Bradford County School Boards-Districts, Brevard County Art Council-Agency, Brevard County School Boards-Districts, Orange County School Boards-Districts, Osceola County Art Council-Agency, Osceola County School Boards-Districts, Palm Beach Atlantic University, Broward County Art Council-Agency, Broward County Red Cross Chapter, Broward County School Boards-Districts, Calhoun County Art Council-Agency, State Game Trust Fund (Fla. Fish and Wildlife Conservation Commission), State Homes for Veterans Trust Fund (Fla. Department of Veterans' Affairs), State of Florida General Revenue Fund, Calhoun County School Boards-Districts, Capital Area Red Cross Chapter, Central Florida Scout Council, Central Florida Scouting Council, Homeownership For All, Inc., Indian River County Art Council-Agency, Indian River County School Boards-Districts, Central Panhandle Red Cross Chapter, Charlotte County Art Council-Agency, Charlotte County Red Cross, Charlotte County School Boards-Districts, Martin County School Boards-Districts, Miami-Dade County Art Council-Agency, Monroe County Art Council-Agency, Monroe County School Boards- Districts, Mote Marine Laboratory, Inc., Nascar Foundation, Inc., Children's Home Society of Florida, Citrus County Art Council-Agency, Citrus County School Boards-Districts, Manatee County School Boards-Districts, Marine Corps Scholarship Foundation, Inc., Marine Resources Conservation Trust Fund (Fla. Fish and Wildlife Conservation Commission), Marion County Art Council-Agency, Marion County School Boards-Districts, Clay County Art Council-Agency, Clay County School Boards-Districts, Clearwater Christian College, Collier County Art Council-Agency, Collier County Red Cross Chapter, Collier County School Boards-Districts, Columbia County Art Council-Agency, Okeechobee County School Boards-Districts, Orange County Art Council-Agency, Palm Beach County Art Council-Agency, Palm Beach County 11 per DHSMV, Division of Administrative Services, Bureau of Finance and Accounting Page 7 of 19

8 School Boards-Districts, Pasco County Art Council-Agency, Pasco County School Boards-Districts, Columbia County School Boards-Districts, Community Partnership for Homeless, Inc., Corrections Foundation, Inc., Duval County School Boards-Districts, Eckerd College, Edward Waters College, DeSoto County Art Council-Agency, DeSoto County School Boards-Districts, Dixie County Art Council-Agency, Dixie County School Boards-Districts, The Florida Future Farmers of America Foundation, Inc., The Gathering/USA, Inc., Transplant Foundation, Inc., Volusia County Art Council-Agency, Volusia County School Boards-Districts, Dream Foundation, Inc., Duval County Art Council-Agency, Emery-Riddle Aeronautical University, Escambia County Art Council-Agency, Greater Palm Beach Area Red Cross, Gulf Coast Scouting Council, Gulf County Art Council-Agency, Escambia County School Boards-Districts, Family First, Flagler County Art Council-Agency, Flagler County School Boards-Districts, St. Lucie County Art Council-Agency, St. Lucie County School Boards-Districts, Sumter County Art Council- Agency, Florida A&M University, Florida Association of Healthy Start Coalitions, Florida Atlantic University, Florida Chapter of the International Society of Arboriculture, Inc., Technological Research and Development Authority (Fla. Dept. of Education), The Florida Association of Agencies Serving the Blind, Inc., Wakulla County Art Council-Agency, Florida chapter of the March of Dimes, Florida College, Florida Communities Trust Fund, Seminole County School Boards-Districts, Sheridan House, Inc., South Florida Scouting Council, Florida Developmental Disabilities Council, Inc., Florida Foundation for Responsible Angling, Inc., Florida Gulf Coast University, Florida Hospital College of Heath Sciences, Florida Institute of Technology, Nassau County Art Council-Agency, Nassau County School Boards-Districts, New College of Florida, North Central Florida Red Cross Chapter, North Florida Scouting Council, Florida International University, Florida Lighthouse Association, Inc., Florida Memorial College, Florida Network of Children's Advocacy Centers, Inc., Florida Southern College, Florida's Coast to Coast Red Cross Chapter, Hamilton County Art Council-Agency, Hamilton County School Boards-Districts, Harbor Branch Oceanographic Institution, Inc., Franklin County Art Council-Agency, Franklin County School Boards-Districts, Gadsden County Art Council- Agency, Gadsden County School Boards-Districts, Gilchrist County Art Council-Agency, Gilchrist County School Boards-Districts, Hendry County School Boards-Districts, Hernando County Art Council-Agency, Hernando County School Boards-Districts, Martin County Red Cross Chapter, Nascar, Inc., Southwest Florida Red Cross Chapter, Southwest Florida Scouting Council, Space Coast Red Cross Chapter, Sportsmen's National Land Trust, St. Johns County Art Council-Agency, St. Johns County School Boards-Districts, North Treasure Coast Red Cross Chapter, Glades County Art Council-Agency, Glades County School Boards-Districts, Gulf County School Boards-Districts, Hillsborough County School Boards-Districts, Holmes County Art Council-Agency, Gulf Ridge Scouting Council, Gulf Stream Scouting Council, Leon County Art Council- Agency, Leon County School Boards-Districts, Hardee County Art Council-Agency, Hardee County School Boards-Districts, Hendry County Art Council-Agency, Jefferson County Art Council-Agency, Lafayette County Art Council-Agency, Highlands County Art Council-Agency, Highlands County School Boards-Districts, Lee County Art Council-Agency, Lee County Red Cross Chapter, Hillsborough County Art Council- Agency, Holmes County School Boards-Districts, Jackson County Art Council-Agency, Jackson County School Boards-Districts, Jacksonville University, Lafayette County School Boards-Districts, Lake County Art Council-Agency, Lake County School Boards-Districts, Suwannee River Area Scouting Council, Tampa Bay Estuary Program, Tampa Bay Red Cross Chapter, Tampa Bay Regional Planning Council, Lee County School Boards-Districts, Levy County Art Council-Agency, Levy County School Boards-Districts, Polk County School Boards-Districts, Putnam County Art Council-Agency, Ringling School of Art & Design, Rollins College, Taylor County Art Council-Agency, Taylor County School Boards-Districts, Wakulla County School Boards-Districts, Walton County Art Council-Agency, Liberty County Art Council-Agency, Liberty County School Boards-Districts, Lighthouse Soccer Foundation, Inc., Lynn University, Madison County Art Council-Agency, Manatee County Art Council-Agency, Manatee County Red Cross Chapter, Martin County Art Council-Agency, Okeechobee County Art Council-Agency, PCMI Properties, Inc., Pinellas County Art Council-Agency, Pinellas County School Boards-Districts, Sumter County School Boards-Districts, Walton County School Boards-Districts, Warner Southern College, Polk County Art Council-Agency, Polk County Red Cross Chapter, Saint Leo University, Seminole County Art Council-Agency, Southeastern University, St. Johns River Water Management District, Washington County Art Council-Agency, Saint Thomas University, Washington County School Boards-Districts, Santa Rosa County School Boards-Districts, Sarasota County Art Council-Agency, Northeast Florida Red Cross Chapter, Nova Southeastern University, Okaloosa County Art Council-Agency, Okaloosa County School Boards-Districts, Madison County School Boards-Districts, West Central Florida Scouting Council, Santa Rosa County Art Council-Agency, Sarasota County School Boards-Districts. There are numerous examples of how organizations utilize the funds generated from the programs to benefit the citizens of Florida. Some specialty plate causes may not be readily identifiable from the design of the plate, and rely on marketing of the license plate and cause to promote awareness and increased sales. The Florida Horse Country license plate provides funding for educational services and mental health counseling for middle and high school age students. The organization has been in operation for 36 years and has had much success with the youth in their care. The Florida Wildflower plate has resulted in funding for programs for University of Florida/IFAS; Florida International University; UF/IFAS Volusia Extension; Florida Museum of Natural History; Florida Department of Transportation; Florida Department of Agriculture and Consumer Services; Florida Wildflower Seed and Plant Growers Association; Nature Wise Inc., Orlando; Orange, Seminole, Lake, Volusia, Brevard, Putnam, Flagler, St. Johns, Leon, Wakulla, Gadsden, Palm Beach, Dixie, Levy, Gilchrist, Osceola counties; Association of Florida Native Nurseries, and Florida Native Plant Society, among others. Page 8 of 19

9 Last weekend, a child went to Lake Manatee State Park and caught his very first fish. Last fall, a little girl with cancer spent the morning fishing with volunteers from the Egypt Shriners instead of receiving chemotherapy. Last summer, a boy from inner-city Miami said thank you for helping me go to fishing camp. His best friend hung out with a gang and was shot to death. These are the children helped by the Fish Florida specialty license plate. There are many thousands more. In just the last 4 years, they have helped over 70,000 children get their own fishing rod, supported 300 kids fishing clinics in 90 Florida communities and awarded $430,000 in grants and scholarships. They help YMCAs, Boy Scouts, park and recreation departments, fishing clubs, cities, counties and state agencies. All from the specialty license plate. Fishing is a gateway activity to outdoor recreation. Outdoor time reduces obesity and ADHD. These children are learning to care for our environment and will become part of fishing s annual $8.6 billion economic impact in Florida. Florida Hospices and Palliative Care, Inc. has raised $1,207, since 2004 from sales of their specialty license plate ( HOSPICE: Every Day Is A Gift ). Every year, Florida s hospice providers serve over 100,000 patients and their families. Revenues fund outreach to veterans, children and minority groups and education to volunteers, patients, families, the public and health care professionals. 6. The Adverse Impact of Increased Registration Fees and the Cost to the State The non-profit organizations that disperse tag funds are important cogs in Florida s economic wheel. They employ thousands of people from biologists to social workers and purchase a vast array of services from their communities. Unfortunately, the fact that donations from these plates fund extremely important social and environmental missions for the most part goes underreported. They feed and clothe the homeless; provide counsel; protect sea turtles, manatees and other endangered creatures; do scientific research; assist our military personnel and their families; provide scholarships to students who would not otherwise attend universities and support student-faculty collaborative research, career services and other student programs, and much, much more. On September 1, 2009, the fee to acquire a new specialty plate increased to $33. Add to that the $15 to $25 donation made to the plate s sponsor, and you get a clear indication why these plate sales have plummeted 67% overall. Registration Fee Increases, effective September 1, 2009 Old New Increase Amount Registration Fee $46.10 $71.15 $25.05 Specialty Plate Processing Fee $2.00 $5.00 $3.00 New Plate Fee $12.00 $28.00 $16.00 Specialty Plate Fee $15 -$25 $15-$25.00 $0 $75.10-$85.10 $ $ $44.05 Page 9 of 19

10 Despite the economy, specialty license plate sales continued to improve to September, Total Annual Sales of specialty license plates*: ,284, ,411, ,506, ,562, ,630,330 (*Calendar Year, Source: DHSMV) Sales The downturn in November and December of 2009 has already resulted in a decrease in total sales (1,623,487) for There were almost 82,000 specialty tags sold in November and December 2008 and January 2009, even in the down economy. For those months a year later, there were only 26,670 sales. Month New Plate Sales Reduction % Change January ,986 January ,865 4,121-11% January ,618 3,247-10% January ,902 19,716-69% Source: Florida Department of Highway Safety and Motor Vehicles The recession will certainly have some effect on sales and organizations were quite prepared to see some decrease in sales activities, along with most businesses in Florida. However, they did not anticipate an average 69% downturn in January New Specialty License Plate Sales Plate January 2009 January 2010 % Change University of Florida 2, % FSU 1, % Save the Manatee % Support Education % Marine Corps % Protect Wild Dolphins 1, % Protect the Panther 1, % State of the Arts % Challenger/Columbia % Invest in Children % Sea Turtles 1, % Source: Florida Department of Highway Safety and Motor Vehicles If the fee error is not immediately corrected, the State of Florida may lose $10 million more over Page 10 of 19

11 the next 10 years due to reduced new specialty tag sales, caused by the new fees 12. DMV also collects a specialty plate administrative fee directly from sales of SLP s from the $1.87 per plate. For FY $3, was already collected. In June 2010, this amount will also be reduced significantly if SLP sales continue to decline. If the fee error is not corrected, State agencies and nonprofits funded by specialty plates may lose $57 million over the next 10 years. 13 New increased registration fees have also resulted in a 19.72% decrease in new vehicle registrations. 14 The potential loss of jobs in charitable/college/state agencies in implementing programs/closing programs and the overall cost to economy is incalculable. The potential loss to services and programs is devastating, including feeding families, sheltering the homeless, saving animals, protected and domestic, sending care boxes to deployed troops, scholarships, funding the DMV, breast cancer, autism and other medical research is funded. There are 20 specialty license plates that revolve around fishing, water based tourism (diving, etc), eco-tourism and the environment. Just the recreational fishing component alone in the State of Florida is estimated by the state to have roughly a $6 billion economic multiplier effect and if you then add in the other tourism aspects, the numbers grow exponentially higher. The specialty plates fund support for these industries in terms of making sure that the fish, billfish, sharks, sea turtles, dolphins, corals, etc are surviving and thriving in Florida's waters through the work that is done from SLP funding. The reduction in revenue from the increased registration fees will impact an overall multi-billion dollar marine based economy that could lead to huge job and revenue losses in the near future. 7. The Myth of Proliferation (Providing Choice and Variety to the Citizens of Florida) An isolated misperception regarding the specialty license plate program is that there are too many. The word proliferation is used by a few who are seemingly troubled by variety and choice (actual): 336,097, multiplied by old plate fee of $12.00 = $4,033, revenue to state. Nov.'09-Oct '10 (estimated, based on Nov/Dec/Jan sales): 106,680, multiplied by new plate fee of $28.00 = $2,987, revenue to state. This reflects a net loss to the state of $1,046,124.00, annually. 13 New issues: 2008 (actual): 336,097 - Nov '09-Oct '10 (estimated): 106, ,417 x $25 = $5,735,425 x 10 year plate life. 14 November, December 2009 and January 2010: 340,336 / November, December 2008 and January 2009: 407,457 Page 11 of 19

12 Actually, Florida has far fewer plates than a number of other states and certainly has fewer per capita than most. Florida Plate Choices Compared to Other States Choices State Estimated Population Specialty Plates Per Capita Choice Maryland 5.6 million :8,000 Mississippi Less than 1 million 150 1:20,000 Louisiana 4.4 million 128 1:34,375 Virginia 7.8 million 183 1:42,623 Missouri 6 million 136 1:44,118 New York 19.5 million 255 1:76,471 Pennsylvania 12.6 million 150 1:84,000 Florida 18 million 113 1:159,292 Texas 24.7 million 154 1:160,389 Source: Foundation Consultants Corporation This is a function of several factors. One is that plates used to be harder and more expensive to manufacture. Now they are produced in some states as simply as sending a color Word document or jpeg to card stock in a color laser printer. Another is the variation in state population bases. Sparsely populated states will naturally have and need a smaller number of types of plates, and states with a larger population will want a larger variety to answer naturally resultant variety of desires of its citizens. One of the most common misleading terms used in opposition to the specialty license plate program by those troubled by variety and diversity is proliferation. Another rare argument against increasing the number of specialty license plates is the issue of cannibalism. Sometimes someone will claim that by limiting choice it will protect and increase their plate sales. Neither bottled water nor specialty plates existed thirty years ago. Now there are many brands, each with phenomenal sales, each reinforce consumer awareness of the product and create a perceived need for the product. One college s plate does not detract sales from another s and in fact enhances the sales of the others. An Army plate does not detract from an Air Force plate. One children s plate enhances the other children s plates. Each license plate attracts a different market segment and appeals to a certain person and accesses funds that otherwise would not be accessed. Separate from the 113 specialty license plates that support charitable organizations, colleges and state agencies, Florida has over 200 other designs for plates, including the following, that do not provide additional revenue or funding to the citizens of Florida: Standard with County Name 67 different counties Standard with Sunshine State in various amended designs Standard with Sunshine State and personalized Standard with In God We Trust 100s of Authenticated Plates (any very old plate of any earlier Florida design brought in and legally registered for utilization). Apportioned (tan field) Fleet (pale green field) Permanent Trailer (white field) Page 12 of 19

13 Restricted (standard with Restricted ) Transporter (orange field) Wrecker (standard with wrecker ) Wrecker (light brown field with wrecker for GVW) Standard (disabled implemented of placard or small sticker) Department of Corrections on yellow. County on yellow Division of Drivers License on yellow Department of Environmental Protection on yellow Fish and Wildlife on yellow Florida Highway Patrol Florida Department of Law Enforcement Florida National Guard on yellow National Guard on yellow Labor and Employment Security on yellow Division Motor Vehicles on yellow North Broward Hospital District on yellow PRIDE on yellow Public Service Commission on yellow Sherriff with yellow State with yellow Florida Department of Transportation on yellow Florida Departmental Veteran Affairs on yellow Volunteer Fire Department on yellow Water Management District on yellow Foreign Organization Honorary Consul House Speaker Member of Congress Senate President State Legislator State Senator U.S. Senator Disabled Veteran Disabled veterans with disabled logo Ex Prisoner of War Medal of Honor Air Force Medal of Honor Army Medal of Honor Navy National Guard standard design Operation Enduring Freedom Operation Iraqi Freedom Paralyzed Veteran do America Pearl Harbor Survivor Purple Heart U. S. Reserve. Miccosukee Indian Seminole Indian. Amateur Radio on standard Exempt Series on standard Dealer on standard Manufacturer on standard Press on standard Temporary employment Specialty license plate revenue sales data published by the DMV demonstrates conclusively that a trend exists from the inception of specialty plates to the present showing increasing demand for plates. Some of that data indicates that the overall purchase of plates jumps as each new specialty plate is introduced, with ever-increasing amounts of money donated to public service. The more plates that exist, the more people see their friends and others with them, feel left out, and are self-compelled to get one and participate. That is, the more that are out there, the more they are noticed, and the more people want them. However, the price point has to remain affordable and the cost of making a charitable donation should never be more than the actual donation that the charitable organization receives. 8. The Myth of Law Enforcement Issues No bona fide concerns have arisen anywhere in Florida or the other 49 states regarding law enforcement s ability to read plate numbers or identity vehicles based on the design of the plates. The only issue here is visibility. The objective test being adopted follows technology and is based on whether roadside cameras can read the plates at toll booths. DHSMV has also upgraded to its Driver And Vehicle Information Database (DAVID) program so an officer can now perform a vehicle search with just a few known facts about the vehicle they are attempting to locate. Page 13 of 19

14 It used to be that the odds worked in the favor of a person driving a stolen vehicle. On Florida's crowded streets and highways, the chance of law enforcement spotting the vehicle, running the tag and getting a hit seemed a lot like playing the lottery. With today's Automated License Plate Recognition systems, however, the odds are now stacked in law enforcement's favor. Automated License Plate Recognition systems (ALPR) allow officers to run thousands of license tags each hour through crime databases and determine if any are linked to a crime. Once there is a hit, the patrol officer is given everything they need to investigate including a photograph of the vehicle and the nature of the crime. Several Police Departments and Sheriffs' Offices in Florida have been testing systems and some have been using them for more than a year. It is the ultimate multi-tasking tool for patrol: as the deputy or officer is taking in numerous other details through observation, the scanner is running tags. ALPRs have revolutionized the way law enforcement finds stolen cars, unlicensed drivers and even parking ticket violators. In one demonstration, a patrol car outfitted with four cameras - two forward facing, a side facing and a rear facing - was capturing 3,600 plates per hour, per camera. As the deputy or officer is patrolling a shopping center, apartment complex or busy highway a steady beat of "clicks" indicates tags being logged in and checked. When there is a match with a crime report, the computer sets off an alarm. After reviewing the information, the deputy can choose to either follow up, or call the specialized unit based on the crime to set up surveillance. Broward, which covers 14 cities, has 35 license plate recognition systems mounted on patrol cars and at fixed locations throughout the county. The combination of cameras can scan an average of 300,000 plates per month. The devices can scan license plates even on busy highways, with traffic going in both directions. It can accurately read plates on cars going up to 120 mph in rain, dark or sunshine. A greater issue is the use of obstructive license plate holders and reflective covers, the latter of which is specifically designed to circumvent law enforcement. Statutes already address the illegality of these. However enforcement has been limited. The automobile dealers lobby has also been quite effective in insuring that they can continue to send their recently sold vehicles onto the road with their advertisements emblazoned around the license plate. Texas has recently implemented an intensive program to crack down on any kind of coverage of the license plate, which has proved not only to be very effective, but quite lucrative to the state and local government. 9. Demographics of Specialty License Plate Buyers As mentioned above, Florida s specialty plates are an excellent area of cooperation between the pubic and private sector. This reaches beyond the first-tier relationship between the State and organizational entity to the organization s members and supporters who care enough to deliberately buy a plate supporting the organization or the cause. In most cases, the voluntary Page 14 of 19

15 contribution made by a specialty plate buyer is a purposeful decision to support the cause that benefits from the sale of that particular specialty plate. Purchasers of specialty license plates are: Civically active. Politically attuned and active. Registered and active voters. Involved in causes and/or alumni. Often own more than one motor vehicle. Often replace their motor vehicles every two to three years. With respect to certain SLP purchasers, are generally affluent with disposable income. 16 In many households, there are different specialty license plates on each of the family member s vehicles. 10. Oversight of Proceeds Florida charities are continually monitored by a number of public and private entities at multiple levels. They must file financial reports yearly with the charities division of the Florida Department of Agriculture and Consumer Services. The DMV can stop disbursing plate funds without necessity of hearing until issues are resolved. IRS Form 990 provides highly detailed disclosure, and the IRS can investigate, counsel, and if need be revoke an IRC 501 status for improper practices. Numerous private charity watchdog groups exist, which rate charities and disseminate information on their financial performance and practices. Charities are highly self-policed in that they have a natural incentive to maintain low overhead in order to attract donors, attract good press, and be able to participate in regulated charitable campaigns. Further, expenditures of all specialty license plate proceeds are governed by Florida Statutes , , , , , , Florida Administrative Code 27D, Rules of the Auditor General / and embodied in DHSMV s Instructions for Expenditures of Specialty License Plate Fees. There are five types of expenditures authorized in F.S These types are: 1. Program and project costs, 2. Annual audit or compliance affidavit costs, 3. Administrative costs, 4. Start-up costs, and 5. Promotion and marketing costs. 16 Survey conducted by Foundation Consultants in South Carolina, Georgia, Virginia, Louisiana, Alabama and Florida, Page 15 of 19

16 Depending on the statute for a particular license plate, some organizations may be restricted to only one of these types of expenditures while others may have two or more. For example, F.S (motorcycles) authorizes expenditures for the first three cost categories only. If the purpose of an organization s expenditure of license plate use fees is not specified in the statutes it will be disallowed. The rules provide for an audit, a periodic detailed review, performed by the Department of Highway Safety and Motor Vehicles Office of Inspector General, of an organization s records pertaining to revenues and expenditures of use fees to determine the organization s compliance with statutes. 17 The Specialty License Plate Revenue, Expenditure and Compliance Affidavit is a DHSMV form that must be completed and submitted annually to the department when a $500,000 threshold criteria for a single audit is not met. The form and format is prescribed by the department and must be completed in its entirety and signed by the organization s chairman or executive director and notarized by a notary public. The annual affidavit must be submitted to the department within nine months after the end of the organization s fiscal year. 18 For organizations expending $500,000 or more of state funds in the organization s fiscal year, an audit must be performed by a C.P.A. 19 The audit report must include a statement by the C.P.A. about the organization s compliance with applicable laws pertaining to the expenditure of specialty license plate use fees. Copies of the single audit report package must be submitted to the Auditor General and to the department within 45 days after delivery of the audit report package to the auditee, but no later than nine months after the end of the fiscal year of the auditee. 20 Any expenditure of specialty license plate fees that does not comply with Florida Statutes; and any expenditure, whether authorized or not, that cannot be substantiated with a detailed employee time sheet, or a receipt and cancelled check, will be disallowed. Allowable expenditures include: 1. Salaries of employees and officers of the organization who can prove, via detailed daily time sheets, that they actively participated in program activities. 2. Office supplies and equipment directly utilized for the specified program(s). 3. Travel time, mileage reimbursement, and lodging expenses directly associated with a specified program purpose. 4. Paper, printing, envelopes, and postage directly associated with a specified program purpose. 5. The organization s internet site that provides the public with information about the approved program(s). 17 F.S (3) states; The department has the authority to examine all records pertaining to the use of funds from the sale of specialty license plates. 18 F.S This amount is from all sources of state funds no matter if the funds are received from one or more state agencies for different purposes. 20 Pursuant to Auditor General Rule Page 16 of 19