HF1174

Purpose

• Modernize and adjust how driver and vehicle services are funded and operated. The bill aims to change filing fees, create online driver’s license renewal, require reporting on no-fee transactions, and distribute money to deputy registrars for no-fee services.

Main Provisions

• Filing fees on vehicle transactions

  • Imposes a filing fee of $8 on every vehicle registration renewal (excluding pro rate transactions).
  • Imposes a filing fee of $12 on every other type of vehicle transaction, including motor carrier fuel licenses.
  • If a document is returned for a refund or correction due to an error by the Department of Public Safety, a dealer, or a deputy registrar, no filing fee or other fee may be charged for the surrender of a title.

• Display of fees

  • The filing fee must be shown as a separate item on all registration renewal notices sent by the commissioner.

• Payment methods and processing costs

  • The filing fees (and other fees) may be paid by credit card or debit card.
  • A deputy registrar may charge a surcharge to cover the cost of processing credit/debit card transactions, not exceeding the actual processing cost, and this surcharge goes toward processing costs.

• Fee allocations (how the money is split)

  • The department must allocate the collected fees among:
  • Driver and Vehicle Services (DVS) Operating Account
  • DVS Technology Account
  • The General Fund
  • Specific dollar amounts are listed in the statute to designate portions for the operating account, technology account, and the general fund (examples in the text show allocations to these accounts).

• No-fee transactions and deputy registrars

  • In addition to the regular fees, deputy registrars must assess a surcharge on every transaction with filing fees; the surcharge goes to the deputy registrar’s treasury (or, if the registrar is not a public official, to the deputy registrar’s treasury). The commissioner is not included in this surcharge calculation.

• No-fee transaction distributions

  • The commissioner must compile data quarterly about no-fee transactions completed by deputy registrars.
  • deputy registrars receive distributions calculated based on:
  • The number of no-fee vehicle registration renewals completed by that deputy registrar multiplied by 9.
  • The number of all other no-fee vehicle transactions completed by that deputy registrar multiplied by 13.
  • The total amount distributed to deputy registrars under this provision is appropriated to the commissioner from the DVS Operating Account in the Special Revenue Fund.

• Online renewal

  • Establishes online renewal for driver licenses, expanding how residents can renew.

• Amendments to statutes

  • The bill modifies and adds to Minnesota Statutes 2024 sections 168.33, subdivision 7, and 171.06 by adding a new subdivision (171.13 subdivision 1.1.8), and makes related changes to implement these provisions.

Significant Changes to Existing Law

• Introduces mandatory no-fee transaction distributions to deputy registrars and a separate surcharge to cover processing costs.
• Creates online renewal for driver licenses.
• Changes the structure and visibility of filing fees on renewal notices.
• Specifies how filing fees are allocated across DVS operating and technology accounts as well as the General Fund.
• Adds a quarterly data reporting requirement and a formula to compensate deputy registrars for no-fee activity.
• Amends the relevant Minnesota Statutes to implement these changes.

Impact and What It Means for People

• For residents: more payment options (credit/debit cards) and the possibility of online license renewals; renewal notices will clearly show the renewal fee as a separate line item.
• For deputy registrars: potential new revenue streams from processing surcharges and allocations for no-fee activities, plus quarterly data-driven distributions.
• For state agencies: new accounting and reporting requirements and revised funding flows among operating, technology, and general fund accounts.

Relevant Terms - deputy registrar - no-fee transactions - no-fee vehicle registration renewals - no-fee vehicle transactions - driver and vehicle services (DVS) - Driver and Vehicle Services Operating Account - Driver and Vehicle Services Technology Account - General Fund - Special Revenue Fund - filing fee - vehicle registration renewal - other vehicle transactions - motor carrier fuel licenses - credit card - debit card - surcharge - online renewal - Department of Public Safety - data reporting - appropriation