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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 how fees collected from driver and vehicle services in Minnesota are distributed. It introduces the concept of a "full-service provider account" and changes the fee distribution system to ensure efficient operation and technology support.

Main Provisions

  • Fee Structure Changes: The bill introduces specific filing fees for various types of vehicle transactions. An $8 fee is levied on vehicle registration renewals, while a $12 fee applies to other vehicle transactions.
  • Allocation of Fees:
    • For the $8 filing fee, $6.50 goes to the driver and vehicle services operating account, and $1.50 to the technology account.
    • The $12 fee is split with $3.50 to the general fund, $7 to the operating account, and $1.50 to the technology account.
  • Credit/Debit Card Transactions: Allows fees to be paid via credit or debit card, with a surcharge applicable to cover processing costs.
  • New Surcharges: A $1 surcharge is introduced per transaction that applies to all transactions with collected filing fees. A $5 surcharge is added for mail transactions specifically, with proceeds split between the operating and full-service provider accounts.

Significant Changes to Existing Law

  • Introduction of Full-Service Provider Account: This account will receive funds from certain transactions to use in improving service provision.
  • Revised Fee Distribution: The bill specifies new ways in which fees are divided among various state accounts, particularly emphasizing technology and service coverage improvements.
  • Surcharge on Mail Transactions: A new $5 surcharge on mail transactions is introduced, which was not previously specified.

Relevant Terms

full-service provider account, driver and vehicle services, filing fees, surcharge, operating account, technology account, vehicle registration, mail transactions, Minnesota statutes.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on filing fee distribution for motor carrier fuel licenses."
      ],
      "removed": [],
      "summary": "This bill relates to the imposition of filing fees on motor carrier fuel licenses under section 168D.05.",
      "modified": []
    },
    "citation": "168D.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarification on filing fee distribution for motor carrier fuel licenses."
      ],
      "removed": [],
      "summary": "This bill relates to the imposition of filing fees on motor carrier fuel licenses under section 168D.06.",
      "modified": []
    },
    "citation": "168D.06",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Clarification on allocation of fees to the driver and vehicle services operating account."
      ],
      "removed": [],
      "summary": "This bill modifies the allocation of fees collected relating to driver and vehicle services, impacting section 299A.705, subdivision 1.",
      "modified": []
    },
    "citation": "299A.705",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Clarification on allocation of fees to the driver and vehicle services technology account."
      ],
      "removed": [],
      "summary": "This bill modifies the allocation of fees collected relating to driver and vehicle services, impacting section 299A.705, subdivision 3.",
      "modified": []
    },
    "citation": "299A.705",
    "subdivision": "subdivision 3"
  }
]

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