Purpose

To update how driver and vehicle services handle fees, reimbursements, and debt collection; to give the public safety commissioner authority to pursue debt collection; and to allow in-person pickup of items that customers originally receive after online transactions. The changes also adjust how deputy registrars and drivers license agents are reimbursed for certain transactions and how funds are managed.

Main Provisions

• Self-service kiosk fees and fund flow

  • The commissioner may charge a convenience fee of up to $5 for each self-service kiosk transaction.
  • The vendor collects and keeps the revenue from the convenience fee.
  • Filing fees that apply to kiosk transactions (under the relevant statute) must be collected; deputy registrars keep the filing fees until they’re deposited into the deputy registrar’s account.
  • The new fees are in addition to any other transaction or card processing fees.

• In-person pickup of items after online transactions

  • For online motor vehicle transactions that require delivering physical items, customers must be offered the option to pick up those items in person at a local deputy registrar’s office.
  • Eligible online transactions include: changing license plates; requesting a duplicate registration card; requesting duplicates of license plates or stickers; requesting or renewing a disability parking certificate; and renewing vehicle registration tabs.
  • A deputy registrar may charge a handling fee for each in-person pickup.

• Reimbursements to deputy registrars (and related entities)

  • The statute is amended to specify reimbursements to deputy registrars for many listed transactions, including:
  • Paying account balances.
  • Updating addresses (including county for the International Registration Plan or the International Fuel Tax Agreement).
  • Updating or verifying contact information related to IRP/IFTA.
  • Processing vehicles that have been sold, donated, or removed, and marking vehicles as junked.
  • Changing a customer’s personal identification number (PIN).
  • Adding or removing liens for veterans with total service-connected disability.
  • Providing duplicate titles and issuing IRP decals.
  • Managing IRP licenses and handling administrative review requests.
  • Various other veteran-related and disability-related transactions (e.g., renewing credentials for veterans with disabilities, issuing disability parking certificates, etc.).
  • Some transactions for which no filing fee is collected are not eligible for these reimbursements, and there are rules about prorating payments if appropriations are insufficient.
  • The payments are funded from the Driver and Vehicle Services operating account, with annual appropriation specified for these reimbursements.

• Debt collection authority for driver and vehicle service fees

  • The commissioner must make reasonable, businesslike efforts to collect driver and vehicle services fees owed under the relevant chapters.
  • The commissioner may contract with debt collection services to collect money judgments or legal indebtedness.
  • Money collected is deposited into the Driver and Vehicle Services operating account; payments to the debt collection service come from that money.
  • If funds for contractual collection costs are insufficient, the commissioner must prorate payments.
  • Deputy registrars and drivers license agents are not responsible for collecting debt or depositing funds; debt collection and related accounting are the commissioner's sole responsibility.

• Reimbursements to drivers license agents

  • The commissioner must reimburse drivers license agents for various transactions, including:
  • Paying account balances.
  • Certain veteran-related credentials, homeless status, reduced-fee credentials, and related reinstatement fees.
  • Changes to PINs and mail-in applications, photographs, renewal processes.
  • Other specified transactions such as court order reviews and issuing credentials for veterans with disabilities or other eligible groups.
  • As with deputy registrars, no-fee transactions and certain other events are not eligible for these reimbursements, and funds may be prorated if appropriations are insufficient.

• Miscellaneous

  • The bill includes coding changes to Minnesota Statutes to reflect these new authorities and procedures, and it uses the Driver and Vehicle Services operating account as the funding source for the new reimbursements and debt collection activities.

Significant Changes to Existing Law

• Introduces a formal debt collection authority for the driver and vehicle services program, with funding and responsibilities shifting toward the commissioner for collection activities.
• Establishes an in-person pickup option for physical items delivered after online transactions, plus a new handling fee for in-person pickups.
• Reforms reimbursement structures for deputy registrars and drivers license agents, detailing specific transactions and conditions under which reimbursements are paid, and tying the payments to the DVS operating account.
• Expands and clarifies fee-related provisions for self-service kiosks, including how filing fees and convenience fees are handled.
• Expands the scope of reimbursable transactions for veterans with service-connected disabilities, homeless individuals, and those with reduced-fee credentials.

Targeted Impacts

• Deputy registrars and drivers license agents: new or expanded reimbursement rules; potential impact on how they handle certain transactions and fee flows.
• Customers: may see new options (in-person pickup of items after online transactions) and potential fees (convenience fee up to $5, and in-person handling fees).
• State finances: funds moved into and managed through the Driver and Vehicle Services operating account; new authority to contract for debt collection and to prorate payments if funds are insufficient.

Relevant Terms - self-service kiosk - convenience fee - filing fee - deputy registrar - in-person pickup - disability parking certificate - license plates - duplicate registration card - duplicate license plates or stickers - International Registration Plan (IRP) - International Fuel Tax Agreement (IFTA) - handling fee - debt collection - drivers license agent - Veterans with total service-connected disability - homeless - reduced-fee credentials - reinstatement fees - PIN (personal identification number) - vehicle registration tabs - driver and vehicle services operating account (section 299A.705)