Minneslate Logo

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 revise how fees related to vehicle registrations and transactions are collected and allocated in Minnesota. The changes are designed to establish a full-service provider account and modify fee distributions to support driver and vehicle services operations and technology.

Main Provisions

  • Fee Adjustments: An extra filing fee of $8 for vehicle registration renewals (excluding pro-rate transactions) and a $12 fee for all other vehicle transactions are specified.
  • No Fees for Certain Transactions: If a document is returned for a refund or if there is a correction of an error made by the Department of Public Safety, a dealer, or a deputy registrar, no fee will be charged.
  • Credit and Debit Card Surcharge: A surcharge may be applied to credit and debit card transactions to cover processing costs, to be retained by the deputy registrar.
  • Allocation of Collected Fees:
    • Vehicle Registration Renewal: Portions of the fees are allocated to the driver and vehicle services operating account, technology account, and full-service provider account.
    • Mail or Online Transactions: Similar allocations with specific proportions designated to different accounts.
    • Additional $5 Mail Surcharge: An extra $5 is charged for mail vehicle registration renewals, divided equally between the operating and full-service provider accounts.

Significant Changes to Existing Law

  • Establishes a new full-service provider account to manage part of the fee revenue from vehicle transactions.
  • Introduces a detailed reallocation structure for fees across various transaction types, indicating an effort to better support and fund the systems behind driver and vehicle services.
  • Clarifies that certain fees are not applicable in specific refund or correction scenarios, potentially simplifying administrative processes.

Relevant Terms

  • Vehicle registration
  • Filing fee
  • Surcharge
  • Deputy registrar
  • Full-service provider account
  • Driver and vehicle services operating account
  • Credit/debit card transaction

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "New allocations for full-service provider account."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the allocation of filing fees for vehicle registration and other transactions under section 168.33.",
      "modified": [
        "Adjusts the distribution and handling of filing fees and surcharges."
      ]
    },
    "citation": "168.33",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of new fund allocations."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation modifies the distribution of funds into the driver and vehicle services operating account under section 299A.705.",
      "modified": [
        "Alters the percentage of fees allocated to the operating account."
      ]
    },
    "citation": "299A.705",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Enhanced fund allocations for technology improvements."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill addresses the allocation of fees to the driver and vehicle services technology account under section 299A.705.",
      "modified": [
        "Updates fund distribution structure."
      ]
    },
    "citation": "299A.705",
    "subdivision": "subdivision 3"
  }
]

Sponsors