Panel hears bill to create state-issued “blackout” license plate; revenue to fund plate replacements

The Transportation Committee heard testimony on House Bill 2168, which would establish a state-issued “blackout” license plate available beginning Jan. 1, 2026, and create a license plate replacement fund to pay to replace worn or “exhausted” license plates.

Under the bill as presented, an applicant who chooses a blackout license plate would pay regular registration fees plus an annual $50 royalty to the county treasurer; that royalty would be credited to the license plate replacement fund administered by the secretary of revenue. The presenter said the distinctive-plate application fee and the personalized-plate fee would continue to be credited to the State Highway Fund, while the $50 royalty would fund plate replacements.

Zach Denny, director of government affairs for the Kansas Department of Revenue, told the committee the blackout plate — a black background with white letters — has proved popular in other states. He said Iowa sold about 750,000 blackout plates after introducing the design and estimated Kansas could sell roughly 30,000 in the first year, generating about $2.6 million in total revenue; not all of that revenue would go to the Department of Revenue. Denny said the department launched the proposal to fund replacement of worn embossed plates and early digital plates that are approaching the end of their service life.

Committee members asked how “exhausted” plates are identified and who should pay for replacements. Deanna Shepherd, senior manager in the Division of Vehicles, explained that many distinctive plates issued in the embossed era were never fully replaced because the state lacked funding. She said the embossed plates were intended to have a roughly 10‑year lifespan but many have remained in use for two decades or more, and some laminating processes failed.

Shepherd told the committee that replacement of remaining embossed and distinctive plates generally requires county staff to exchange plates at renewal (not an online easy‑renewal), which is why many remain in circulation. Committee members raised additional operational concerns, including whether county designations would appear on the plate (Denny and Shepherd said county markings would be digitally printed on each plate) and whether plates would be available as randomly issued or personalized (both options would be available).

Members also discussed technical problems caused by duplicate number sequences across multiple distinctive plate types, which can create tolling and enforcement complications with cashless toll systems. Shepherd said overlapping number sequences have produced toll violations that must be resolved manually.

Denny said the department estimates first‑year sales of blackout plates could nearly cover the cost to replace the remaining embossed plates it identified but acknowledged some of the department’s budget requests for embossed plate replacement have been pulled previously. The committee closed the hearing on House Bill 2168 without a recorded vote.

Why it matters: The proposal ties a popular specialty plate to a dedicated revenue stream intended to replace aging plates that may be unreadable to law enforcement and tolling systems. Committee members raised questions about who bears replacement costs, operational logistics at county tag offices, and technical issues from duplicate plate numbering.