HB587 Alabama 2012 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Jim Barton
Republican
Session: Regular Session 2012
Title: Motor vehicles, distinctive license tags, out-of-state colleges and universities, legislative oversight committee authorized to approve applications, Sec. 32-6-67 am'd.
Summary: HB587 creates a legislative oversight committee to approve distinctive license plates for out-of-state colleges or universities and redirects some plate fees to the State General Fund.
What This Bill Does
It amends the law to establish a legislative oversight committee that reviews and approves distinctive license plate categories, including a pathway for out-of-state colleges or universities. The committee can consider and approve Class 2 plates for out-of-state schools, with eligibility rules and a required two-thirds vote for new categories. It imposes a $50 annual fee for new plates and specifies how that money is distributed among state agencies, the Penny Trust Fund, and the sponsoring organization, with the remainder going to the State General Fund for out-of-state plates; existing pre-1998 plates continue under current rules.

Who It Affects
Alabama residents who purchase or hold distinctive license plates will pay a $50 annual fee for new plates, with the funds distributed to the Department of Corrections, Department of Revenue, the Penny Trust Fund, and the sponsoring organization, and any remaining amount going to the State General Fund for out-of-state plates.
Out-of-state colleges or universities and their sponsoring organizations may apply for and potentially obtain distinctive license plates, subject to approval by the legislative oversight committee, including a possible Class 2 plate; funds from these plates may be deposited into the General Fund after specified allocations.

Key Provisions
Creates a legislative oversight committee to oversee distinctive license plates, including composition from House and Senate members and various state officials, with nonvoting advisory members.
The committee can approve or disapprove new license plate categories and must meet at least every six months; approvals require a two-thirds vote of members present.
The committee may consider and approve distinctive plates for out-of-state colleges or universities only under specified conditions, and may approve Class 2 quantity plates for such institutions.
Certain organizations are ineligible for new plates (private businesses, K-12, unions, political or religious groups, etc.), with exceptions only for out-of-state colleges as described.
A $50 annual fee is added for new distinctive plates; distributions include 2.5% commission, $1.50 to the Department of Corrections, $1 to the Department of Revenue, $5 to the Penny Trust Fund, and the remainder to the sponsoring organization or, for out-of-state plates, to the State General Fund.
Pre-1998 plate distributions remain in effect under existing law.
The act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles