SF 1500

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/18/2025 09:58 a.m.

A bill for an act
relating to transportation; modifying various provisions related to driver and vehicle
services; requiring distribution of money to deputy registrars for no-fee transactions;
modifying driver's license examination requirements; establishing online renewal
of drivers' licenses; requiring a report; appropriating money; amending Minnesota
Statutes 2024, sections 168.33, subdivision 7; 171.06, by adding a subdivision;
171.13, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 168.33, subdivision 7, is amended to read:

Subd. 7.

Filing fees; allocations.

(a) In addition to all other statutory fees and taxes:

(1) an $8 filing fee is imposed on every vehicle registration renewal, excluding pro rate
transactions; and

(2) a $12 filing fee is imposed on every other type of vehicle transaction, including motor
carrier fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

(1) a filing fee may not be charged for a document returned for a refund or for a correction
of an error made by the Department of Public Safety, a dealer, or a deputy registrar; and

(2) no filing fee or other fee may be charged for the permanent surrender of a title for a
vehicle.

(c) The filing fee must be shown as a separate item on all registration renewal notices
sent out by the commissioner.

(d) The statutory fees and taxes, the filing fees imposed under paragraph (a), and the
surcharge imposed under paragraph (f) may be paid by credit card or debit card. The deputy
registrar may collect a surcharge on the payment made under this paragraph not greater than
the cost of processing a credit card or debit card transaction, in accordance with emergency
rules established by the commissioner of public safety. The surcharge authorized by this
paragraph must be used to pay the cost of processing credit and debit card transactions.

(e) The fees collected under paragraph (a) by the department must be allocated as follows:

(1) of the fees collected under paragraph (a), clause (1):

(i) $6.50 must be deposited in the driver and vehicle services operating account under
section 299A.705, subdivision 1; and

(ii) $1.50 must be deposited in the driver and vehicle services technology account under
section 299A.705, subdivision 3; and

(2) of the fees collected under paragraph (a), clause (2):

(i) $3.50 must be deposited in the general fund;

(ii) $7 must be deposited in the driver and vehicle services operating account under
section 299A.705, subdivision 1; and

(iii) $1.50 must be deposited in the driver and vehicle services technology account under
section 299A.705, subdivision 3.

(f) In addition to all other statutory fees and taxes, a deputy registrar must assess a $1
surcharge on every transaction for which filing fees are collected under this subdivision.
The surcharge authorized by this paragraph must be (1) deposited in the treasury of the
place for which the deputy registrar is appointed, or (2) if the deputy registrar is not a public
official, retained by the deputy registrar. For purposes of this paragraph, a deputy registrar
does not include the commissioner.

new text begin (g) At least quarterly, the commissioner must compile data related to transactions
completed by deputy registrars for which no filing fee under this section was collected and
distribute to each deputy registrar an amount calculated as the sum of: (1) the number of
no-fee vehicle registration renewals completed by that deputy registrar, multiplied by $9;
and (2) the number of all other no-fee vehicle transactions completed by that deputy registrar,
multiplied by $13. A transaction must not be included in the calculation under this paragraph
if it is a correction to a transaction completed by a deputy registrar. The total amount
distributed to deputy registrars under this paragraph is appropriated to the commissioner
from the driver and vehicle services operating account in the special revenue fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 171.06, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin REAL ID-compliant and noncompliant drivers' licenses; online renewal. new text end

new text begin (a)
For purposes of this subdivision, "applicant" or "renewal applicant" means a person who
renews a REAL ID-compliant or noncompliant driver's license or identification card through
the department's online renewal system established in this subdivision.
new text end

new text begin (b) The commissioner must establish a process for an applicant to renew a REAL
ID-compliant or noncompliant driver's license or identification card, whether by website or
some other means, as provided by this subdivision.
new text end

new text begin (c) The commissioner may renew a REAL ID-compliant or noncompliant driver's license
or identification card for an individual who does not renew in person if:
new text end

new text begin (1) there is no material change in identity, including any change to the applicant's name,
address, signature, and driver's license or identification card number;
new text end

new text begin (2) the renewal application is not for a different type or class of driver's license or
identification card;
new text end

new text begin (3) the renewal application is not for an enhanced driver's license or identification card;
new text end

new text begin (4) the commissioner has a previous photograph of the applicant on file that was taken
within the last five years or in conjunction with the most recent issuance of the applicant's
current credential; and
new text end

new text begin (5) for a driver's license renewal, the applicant submits a vision examination certificate
that:
new text end

new text begin (i) has been completed within the last two years;
new text end

new text begin (ii) is signed by a licensed physician or an optometrist, including one who holds a similar
license in a jurisdiction outside the United States; and
new text end

new text begin (iii) is in a form prescribed by the commissioner.
new text end

new text begin (d) The commissioner must use the photograph on file as specified in paragraph (c),
clause (4), for the applicant's REAL ID-compliant or noncompliant driver's license or
identification card.
new text end

new text begin (e) The commissioner must provide detailed and easily accessible information on the
department's website about online renewals for REAL ID-compliant and noncompliant
drivers' licenses and identification cards. The information must be clearly organized to assist
an applicant in completing online renewal, including but not limited to the photograph and
vision examination requirements under this section and section 171.13, subdivision 1.
new text end

new text begin (f) By each July 31, 50 percent of the revenue collected in the previous fiscal year from
the filing fees assessed for transactions completed under this subdivision must be distributed
as payments to each full-service provider and driver's license agent that was in operation
during the last quarter of the previous fiscal year. The distribution must be based
proportionally on the total number of transactions completed by each full-service provider
and driver's license agent. For the purposes of the distribution calculation in this paragraph,
the number of transactions completed by a driver's license agent must first be multiplied by
0.2. The amount to be distributed under this paragraph is appropriated to the commissioner
from the driver and vehicle services operating account in the special revenue fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026, for renewals made on
or after that date.
new text end

Sec. 3.

Minnesota Statutes 2024, section 171.13, subdivision 1, is amended to read:

Subdivision 1.

Examination subjects and locations; provisions for color blindness,
disabled veterans.

(a) Except as otherwise provided in this section, the commissioner must
examine each applicant for a driver's license by such agency as the commissioner directs.
This examination must include:

(1) new text begin one of the following:
new text end

new text begin (i) new text end a test of the applicant's eyesight deleted text begin , provided that this requirement is met by submission
of a vision examination certificate under section 171.06, subdivision 7 deleted text end ; new text begin or
new text end

new text begin (ii) submission of a vision examination certificate by the applicant meeting the
requirements of the commissioner under section 171.06, subdivision 7 or 7a;
new text end

(2) a test of the applicant's ability to read and understand highway signs regulating,
warning, and directing traffic;

(3) a test of the applicant's knowledge of new text begin : new text end (i) traffic laws; (ii) the effects of alcohol and
drugs on a driver's ability to operate a motor vehicle safely and legally, and of the legal
penalties and financial consequences resulting from violations of laws prohibiting the
operation of a motor vehicle while under the influence of alcohol or drugs; (iii) railroad
grade crossing safety; (iv) slow-moving vehicle safety; (v) laws relating to pupil
transportation safety, including the significance of school bus lights, signals, stop arm, and
passing a school bus; (vi) traffic laws related to new text begin vulnerable road users and motorcyclists,
including but not limited to operators of new text end bicycles new text begin and pedestrians new text end ; and (vii) the circumstances
and dangers of carbon monoxide poisoning;

(4) an actual demonstration of ability to exercise ordinary and reasonable control in the
operation of a motor vehicle; and

(5) other physical and mental examinations as the commissioner finds necessary to
determine the applicant's fitness to operate a motor vehicle safely upon the highways.

(b) Notwithstanding paragraph (a), the commissioner must not deny an application for
a driver's license based on the exclusive grounds that the applicant's eyesight is deficient in
color perception or that the applicant has been diagnosed with diabetes mellitus. War veterans
operating motor vehicles especially equipped for disabled persons, if otherwise entitled to
a license, must be granted such license.

(c) The commissioner must ensure that an applicant may take an exam either in the
county where the applicant resides or in an adjacent county at a reasonably convenient
location. The schedule for each exam station must be posted on the department's website.

(d) The commissioner shall ensure that an applicant is able to obtain an appointment for
an examination to demonstrate ability under paragraph (a), clause (4), within 14 days of the
applicant's request if, under the applicable statutes and rules of the commissioner, the
applicant is eligible to take the examination.

(e) The commissioner must provide real-time information on the department's website
about the availability and location of exam appointments. The website must show the next
available exam dates and times for each exam station. The website must also provide an
option for a person to enter an address to see the date and time of the next available exam
at each exam station sorted by distance from the address provided.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026, for examinations
administered on or after that date.
new text end

Sec. 4. new text begin REPORT; DRIVER AND VEHICLE SERVICES MAIL AND ONLINE
SERVICES EXPANSION.
new text end

new text begin (a) By February 15, 2026, the commissioner of public safety must report to the chairs
and ranking minority members of the legislative committees with jurisdiction over
transportation finance and policy on expanding online and mail services for drivers' licenses
and identification cards. The report must:
new text end

new text begin (1) analyze the online renewal application process established in Minnesota Statutes,
section 171.06, subdivision 7a;
new text end

new text begin (2) evaluate whether to merge the online renewal application process with the remote
application process provided in Minnesota Statutes, section 171.06, subdivision 7;
new text end

new text begin (3) identify performance and service standards for the online renewal application process
for REAL ID-compliant and noncompliant drivers' licenses and identification cards;
new text end

new text begin (4) identify how the department utilized its website to assist the public with the online
renewal application process and detail the department's efforts required in Minnesota Statutes,
section 171.06, subdivision 7a, paragraph (e);
new text end

new text begin (5) evaluate the photograph requirements for online renewal applications established in
Minnesota Statutes, section 171.06, subdivision 7a, and make recommendations on the
procedures needed to permit an applicant to submit by mail or online application a photograph
to the department that meets the requirements of Minnesota Statutes, sections 171.07 and
171.071, and Minnesota Rules, part 7410.1810, subpart 1;
new text end

new text begin (6) evaluate the vision examination requirements for online driver's license applications
established in Minnesota Statutes, sections 171.06, subdivision 7a, and 171.13, and make
recommendations on improvements to the vision examination process, including information
on permitting applicants to submit a vision certificate for each application in lieu of a vision
test on site;
new text end

new text begin (7) analyze the impact of establishing online renewal for drivers' licenses and
identification cards on driver's license agents and full-service providers; and
new text end

new text begin (8) evaluate and modify, if necessary, the fee-sharing provision under Minnesota Statutes,
section 171.06, subdivision 7a, paragraph (f), and create additional proposals to institute
fee-sharing between the commissioner, deputy registrars, and full-service providers as the
department establishes additional online and mail services, including but not limited to an
evaluation of fee-sharing for all transactions, online-only transactions, or enacting a new
fee exclusively for the online renewal of drivers' licenses or identification cards that would
be shared between the commissioner, deputy registrars, full-service providers, and driver's
license agents.
new text end

new text begin (b) The report required in paragraph (a) must include recommendations to the legislature
on areas where it is appropriate to expand online services offered by the department and
how that expansion would impact the quality of services and financial sustainability of
driver's license agents, deputy registrars, and full-service providers. The report must analyze
and review procedures in other states that offer online driver's license applications and
renewals. For the information required in paragraph (a), clause (5), the report must compare
the process for the issuance of a United States passport where a passport applicant may
submit a secure photograph for use in the credential. For the information required in
paragraph (a), clause (6), the report must evaluate how other states address vision examination
requirements for online applications for a driver's license and provide an analysis of the
time frame required for an examination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025.
new text end