Secretary of State Terri Lynn Land is announcing a new plan that would bring greater accountability and fiscal responsibility to Michigan’s fund-raising license plate program for nonprofit organizations.

Land’s initiative prevents the unrestrained growth of fund-raising plates experienced by many states. It also protects Michigan taxpayers from footing the bill for startup costs of multiple plates that ultimately may not sell.

"Fund-raising plates can be effective tools for many worthwhile nonprofit organizations," Land said. "However, there are significant startup costs involved and not all plates are consistently strong sellers. In this case, taxpayers ultimately pick up the tab. I am offering a market-based approach that encourages sponsoring organizations to take a more realistic view of their plates’ chances for success. Requiring an upfront financial obligation before the plates are produced helps the state and the organization to better assess the public’s interest. That’s especially important in these tight budget times."

Land’s idea is being championed by state Sen. Bruce Patterson, R-Canton, who on Thursday introduced Senate Bill 785 based on the plan.

"We want motorists and sponsoring organizations to enjoy the benefits of these plates," Patterson said. "But we must retool our system so that it operates in a more prudent manner. I will work to ensure that those who want specialty plates are offered a reasonable process to follow."

Under the plan:

• The Legislature must adopt a concurrent resolution to create a fund-raising plate.
• All plates must meet a standard design format.
• Sponsoring organizations are responsible for a nonrefundable upfront payment of $15,000 to cover programming, layout and other startup costs. The Department of State must receive the payment within six months of the concurrent resolution’s passage. Roughly 720 plates will have to be sold to recover the $15,000 investment.
• The state may charge a $2,000 redesign fee for organizations that want to alter their plates.
• Minimum sales levels are required. In the first year, 2,000 plates must be sold, and 500 new plates (not renewals) will have to be sold each additional year. Sales will be discontinued if that threshold is not met.
• Plate renewals – even if that plate style is discontinued – will be allowed to continue with the proceeds going to the nonprofit.

Land added that there will be no limit to the number of fund-raising plates as long as the criteria are met. Current university and state-funded plates will be exempt from the sales minimum.

The existing cost distribution will also continue. Fund-raising plates cost motorists $35. Of that total, $25 goes to the nonprofit and $10 is collected by the state.