Subd. 1. General requirements and procedures.

The commissioner of public safety shall issue special collegiate license plates to an applicant who:

1. (1) is an owner or joint owner of a passenger automobile, pickup truck, or van;
2. (2) pays a fee determined by the commissioner to cover the costs of handling and manufacturing the plates;
3. (3) pays the registration tax required under section 168.013;
4. (4) pays the fees required under this chapter;
5. (5) contributes at least $25 annually to the scholarship account established in subdivision 6; and
6. (6) complies with laws and rules governing registration and licensing of vehicles and drivers.

Subd. 2. Design.

After consultation with each participating college, university or postsecondary system, the commissioner shall design the special collegiate plates.

In consultation with the commissioner, a participating college or university annually shall indicate the anticipated number of plates needed.

Subd. 3. No refund.

Contributions under this section must not be refunded.

Subd. 4. Plates transfer.

Notwithstanding section 168.12, subdivision 1, on payment of a transfer fee of $5, plates issued under this section may be transferred to another passenger vehicle, pickup, or van owned or jointly owned by the person to whom the special plates were issued.

Subd. 5. Fees credited.

The fees collected under this section must be deposited in the state treasury and credited to the highway user tax distribution fund. Fees collected under this section do not include the contributions collected for the scholarship account.

Subd. 6. Scholarship account.

A scholarship account is created in the state treasury. Except for one percent that may be retained by the commissioner of public safety for administrative costs, all contributions received under this section must be deposited by the commissioner in the scholarship account. Money in the scholarship account is appropriated to the governing board of the institution to which it is attributable, as provided in subdivision 7.

Subd. 7. Record.

The commissioner shall maintain a record of the number of license plates issued for each postsecondary institution or system in order to determine the amount of scholarship funds available to that institution or system.