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HF2605 (Legislative Session 94 (2025-2026))

Driver and vehicle services; full-service provider account established, and fee distributions modified.

Related bill: SF1164

AI Generated Summary

Purpose of the Bill

This bill aims to modify the way fees are distributed in certain driver and vehicle service transactions in Minnesota. It seeks to establish a full-service provider account for improved management of these fees.

Main Provisions

  • Filing Fees Imposition: Imposes specific filing fees on vehicle registration renewals and other vehicle transactions, excluding pro-rata transactions.

    • An $8 fee for vehicle registration renewals.
    • A $12 fee for other vehicle transactions, including motor carrier fuel licenses and pro-rata transactions.

  • Fee Exemptions: No fees are imposed on documents returned for a refund, to correct errors from the Department of Public Safety, or for the permanent surrender of a vehicle title.

  • Fee Payment Methods: Allows payment of fees using credit or debit cards. Deputy registrars can charge a surcharge to cover the cost of processing these transactions.

  • Fees Distribution:

    • For fees collected on vehicle registration renewals ($8 fee):
    • $6.50 goes to the driver and vehicle services operating account.
    • $1.50 goes to the driver and vehicle services technology account.
    • For fees collected on other vehicle transactions ($12 fee):
    • $3.50 goes to the general fund.
    • $7.00 goes to the driver and vehicle services operating account.
    • $1.50 goes to the technology account.

  • Surcharge for Transactions: A surcharge is imposed on transactions with filing fees, to be used for processing costs or retained by deputy registrars.

  • Mail or Online Transactions: Different allocation for fees collected via mail or online, with a portion going to a newly established full-service provider account.

  • Additional Surcharge: A $5.00 surcharge on vehicle registration renewals submitted by mail, divided equally between the driver and vehicle services operating account and the full-service provider account.

Significant Changes

  • Establishment of Full-Service Provider Account: A significant change is the creation of a full-service provider account, which will receive funds from certain transactions to presumably improve the efficiency and capability of driver and vehicle services.

  • Revised Fee Structures and Allocations: Changes in how fees are distributed among the general fund, operating account, technology account, and new full-service provider account.

Relevant Terms

vehicle registration, filing fees, driver and vehicle services, full-service provider account, surcharge, deputy registrar, credit card transactions, online transactions, mail transactions, technology account, operating account, general fund.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toTransportation Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "New allocations to a full-service provider account are introduced."
      ],
      "removed": [
        "Previous fee distribution to specific accounts not detailed in the amendment."
      ],
      "summary": "The bill amends Minnesota Statutes section 168.33, subdivision 7, regarding the allocation of filing fees associated with vehicle transactions.",
      "modified": [
        "Reallocates certain percentages of collected fees to different accounts and introduces surcharges for specific transaction types."
      ]
    },
    "citation": "168.33"
  },
  {
    "analysis": {
      "added": [
        "Creation of a full-service provider account under a new subdivision."
      ],
      "removed": [
        "Details regarding previous allocations not re-specified under the amendment."
      ],
      "summary": "The bill references Minnesota Statutes section 299A.705 while addressing the reallocation of vehicle services fees.",
      "modified": [
        "Amounts deposited in existing operating and technology accounts are adjusted."
      ]
    },
    "citation": "299A.705"
  }
]

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