HF2605

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.