HF4100

Purpose

• Expand the Department of Public Safety’s Driver and Vehicle Services (DVS) authority to collect debts and manage fees, offer in-person pickup for items ordered online, modify how fees are retained by deputy registrars and license agents, and reimburse these local offices for certain no-fee transactions. It also creates a debt-collection framework and directs funding to support these changes.

Key Provisions

• Self-service kiosks and fees (168.0135 Subd. 3)

  • The commissioner may charge a convenience fee of up to $5 for each self-service kiosk transaction.
  • The vendor that runs the kiosk keeps the convenience fee.
  • Filing fees ordered by statute for kiosk transactions still apply; deputy registrars must keep filing fees in their accounts before disbursing other funds.
  • These convenience and filing fees are in addition to any other card processing fees charged by banks or payment processors.

• Online transactions with in-person pickup option (168.0136)

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

• Reimbursements to deputy registrars (168.33 Subd. 7a, amended)

  • The commissioner must reimburse deputy registrars for a wide range of transactions, including:
  • Paying an account balance
  • Address changes, including updates related to the International Registration Plan (IRP) and International Fuel Tax Agreement (IFTA)
  • Updating contact information for IRP/IFTA
  • Processing vehicles that have been sold, donated, or removed from the state
  • Marking a vehicle as junked
  • Changes to customer PINs; liens for veterans with a total service-connected disability; duplicate titles; issuing IRP/IFTA decals; managing IRP licenses; administrative review requests; and other defined fees
  • Reimbursements for vehicle renewals and plate changes for veterans with a total service-connected disability, disability-related credentials, or related circumstances
  • Some transactions with no filing fee are not eligible for payment; others may be excluded or subject to prorated funding if appropriations are insufficient.
  • Funding for these reimbursements comes from the DVS operating account (annual appropriation).

• Debt collection authority (168.33 Subd. 10)

  • The commissioner must pursue reasonable, businesslike efforts to collect money owed for DVS fees, including fees in chapters 168A, 168D, and section 171.26.
  • The commissioner may contract with external debt collectors to obtain money judgments or other indebtedness.
  • Money recovered must be deposited into the DVS operating account; payments to debt-collection contractors can be made from that money.
  • Deputy registrars and drivers license agents are not responsible for collecting debt or depositing funds; debt collection and related operating-account duties are the sole responsibility of the commissioner.

• Reimbursements to drivers license agents (171.061 Subd. 4a, amended)

  • The commissioner must reimburse drivers license agents for various transactions, including:
  • Paying an account balance
  • Correcting credentials for veterans with a total service-connected disability, those who are homeless, or with reduced-fee credentials
  • Reinstatement fees for veterans with a total service-connected disability and homeless youth
  • PIN changes, mail-in applications, photo renewals
  • Other listed transactions (e.g., credential issuance for certain groups)
  • Transactions with no filing fee under subdivision 4 are not eligible for payment; certain restrictions apply, and payments may be prorated if funding is insufficient.
  • Funding is annually appropriated from the DVS operating account.

• Overall funding and administration

  • The bill codifies a framework for funding reimbursements and debt-collection costs from the DVS operating account (section 299A.705) and clarifies that the deputy registrars and DL agents are not responsible for debt collection duties.
  • It includes coding changes to Minnesota Statutes to implement the new system for debt collection and reimbursements.

Significant Changes to Existing Law

• Creates a formal debt collection authority for the DVS commissioner and authorizes contracting with external debt collectors.
• Establishes a centralized system where money recovered from debt collection goes to the DVS operating account, with costs paid from those funds.
• Introduces an in-person pickup option for certain online transactions and allows a separate handling fee for pickup.
• Expands and specifies the reimbursement framework for deputy registrars and drivers license agents for a broad list of transactions, including disability and veteran-related scenarios.
• Adjusts how kiosk and filing fees are managed and retained by local offices.
• Adds new or revised statutory subparts and subdivisions to accommodate these changes.

Effects and Implications (High-Level)

• Shifts more debt collection and enforcement responsibility to the DVS commissioner rather than local offices.
• Potentially increases convenience for customers who order items online by offering in-person pickup, with additional handling fees.
• Creates new revenue flows and offsetting reimbursements for local offices to support ongoing operations.
• May affect access and costs for certain groups (e.g., veterans, homeless individuals, disabled credentials) due to specific reimbursement rules and potential fee structures.

Relevant Terms

• driver and vehicle services (DVS)
• deputy registrar
• drivers license agent
• self-service kiosk
• convenience fee
• filing fee
• online transactions
• in-person pickup
• disability parking certificate
• license plates
• duplicate title/registration
• International Registration Plan (IRP)
• International Fuel Tax Agreement (IFTA)
• debt collection
• debt collection services
• DVS operating account
• 299A.705 (DVS funding reference)
• veterans with total service-connected disability
• homeless
• homeless youth
• reduced-fee credentials
• administrative review requests