(a) Special purpose and distinctive license plates are authorized for active, retired and honorably discharged members of the Tennessee national guard in good standing. The plates are approved for display on motor vehicles authorized by § 55-4-210(c) that are owned and operated or leased by a member or member's spouse. A surviving spouse of a national guard member, upon complying with state motor vehicle laws relating to registration and licensing of motor vehicles and upon paying the regular fee applicable to the vehicle and a revenue-neutral fee equal to the cost of producing the special purpose plate, may apply for issuance of a national guard registration plate pursuant to this section, which shall be valid until the surviving spouse remarries.

(b) The commissioner shall, with the advice of the adjutant general and the department's taxpayer and vehicle services division director, select an appropriate format for the special purpose plates to include an identification legend which is distinctive to their use and which complies with general registration requirements for vehicles licensed in this state. Additionally, the commissioner shall specify the date by which the adjutant general shall furnish the estimate of the necessary number of plates to be manufactured for use in a given registration year, and shall prescribe the time and manner in which the adjutant general shall furnish lists of national guard members. The lists shall be suitable to the needs of the department and county clerks and shall comply with the requirements of the law for registering vehicles.

(c) Chapters 1-6 of this title relating to titling and registering motor vehicles shall apply with respect to the issuance and use of these special purpose plates, except as otherwise provided in this section.

(d)

(1) The fees imposed for registrations using the special purpose plates shall be as follows:

(A) For enlisted national guard members there shall be no tax (fee) for registering the first vehicle and the regular license fee shall be collected for any additional vehicles;

(B) For national guard officers the tax (fee) shall be the regular license fee for each vehicle;

(C) For national guard retirees, the initial issuance of a special purpose plate and renewals shall be made upon payment of the regular registration fee applicable to the vehicle and a fee equal to the cost of producing the special purpose plate; provided, that the issuance of the plates shall be revenue neutral; and

(D) For honorably discharged national guard members, the initial issuance of a special purpose plate and renewals shall be made upon payment of the regular registration fee applicable to the vehicle and a fee equal to the cost of producing the special purpose plate; provided, however, that the issuance of the plates shall be revenue neutral.

(2) The county clerk in effecting registrations through the use of these special purpose plates shall collect other fees that have application for all registrations, such as service charges provided in § 55-6-104 and reassignment fees when applicable.

(e) If a holder of a special purpose plate is discharged from the national guard prior to the expiration of the registration under which the plate was issued, the special purpose plate may remain valid for display on the vehicle until the expiration date of the registration, unless it was issued under the tax- exempt allowance. All plates that are issued under the tax-exempt allowance shall be surrendered to the national guard when the holders of the plates are discharged from service.

(f) This authority for the use of special purpose license plates is not intended to allow the holders of the special purpose license plate to operate vehicles on which they are displayed in violation of state or local laws or ordinances which govern and relate to the use of motor vehicles.

(g) All applications from retired national guard members shall contain information as the commissioner shall require to prove eligibility for issuance of a license plate. Eligibility for a special purpose registration plate for national guard retirees shall be determined by the department, in consultation with the appropriate information on an applicant's current and valid armed forces of Tennessee identification card, citing that the request is submitted by a retired member of the Tennessee national guard.

(h) All applications from honorably discharged national guard members shall contain such information as the commissioner shall require to prove eligibility for issuance of a license plate. Eligibility for a special purpose registration plate for honorably discharged national guard members shall be determined by the department, in consultation with the appropriate information on an applicant's current and valid armed forces of Tennessee identification card, citing that the request is submitted by an honorably discharged member of the Tennessee national guard.

(i) An application by a surviving spouse for a national guard license plate shall be accompanied by such information as the commissioner shall require to prove the member's eligibility for issuance of the license plate, to include a department of defense form 214 (DD 214) or an NGB form 22, showing adequate proof of service, and a copy of the relevant marriage certificate and death certificate, as further evidence of a surviving spouse's eligibility.