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HF 3997

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/03/2022 02:05pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/03/2022

Current Version - as introduced

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A bill for an act
relating to driver and vehicle services; increasing filing fees for new driver's license
applications; establishing full-service providers; amending fee distributions;
appropriating money; amending Minnesota Statutes 2020, sections 168.002, by
adding a subdivision; 168.33, subdivision 7; 171.01, by adding a subdivision;
171.06, subdivision 2; 171.061, subdivision 4; 299A.705, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 168.002, is amended by adding a subdivision
to read:


new text begin Subd. 12a. new text end

new text begin Full-service provider. new text end

new text begin "Full-service provider" means a person who is
appointed by the commissioner as both a deputy registrar under this chapter and a driver's
license agent under chapter 171.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 168.33, subdivision 7, is amended to read:


Subd. 7.

Filing fees; allocations.

(a) In addition to all other statutory fees and taxes, a
filing fee of:

(1) $7 is imposed on every vehicle registration renewal, excluding pro rate transactions;
and

(2) $11 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, and the filing fees imposed under paragraph (a) may
be paid by credit card or debit card. The deputy registrar may collect a surcharge on the
statutory fees, taxes, and filing fee 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 must be used to pay the cost of processing credit and debit
card transactions.

(e) The fees collected under this subdivision by the department new text begin for in-person transactions
new text end must be allocated as follows:

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

(i) $5.50 must be deposited in the vehicle services operating account; and

(ii) $1.50 must be deposited in the driver and vehicle services technology account; and

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

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

(ii) $6.00 must be deposited in the vehicle services operating account; and

(iii) $1.50 must be deposited in the driver and vehicle services technology account.

new text begin (f) The fees collected under this subdivision by the department for mail or online
transactions must be allocated as follows:
new text end

new text begin (1) of the fees collected under paragraph (a), clause (1):
new text end

new text begin (i) $2.75 must be deposited in the vehicle services operating account;
new text end

new text begin (ii) $0.75 must be deposited in the driver and vehicle services technology account; and
new text end

new text begin (iii) $3.50 must be deposited in the full-service provider account; and
new text end

new text begin (2) of the fees collected under paragraph (a), clause (2):
new text end

new text begin (i) $3.50 must be deposited in the general fund;
new text end

new text begin (ii) $3.00 must be deposited in the vehicle services operating account;
new text end

new text begin (iii) $0.75 must be deposited in the driver and vehicle services technology account; and
new text end

new text begin (iv) $3.75 must be deposited in the full-service provider account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end

Sec. 3.

Minnesota Statutes 2020, section 171.01, is amended by adding a subdivision to
read:


new text begin Subd. 33a. new text end

new text begin Full-service provider. new text end

new text begin "Full-service provider" means a person who is
appointed by the commissioner as both a driver's license agent under this chapter and deputy
registrar under chapter 168.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end

Sec. 4.

Minnesota Statutes 2020, section 171.06, subdivision 2, is amended to read:


Subd. 2.

Fees.

(a) The fees for a license and Minnesota identification card are as follows:

REAL ID Compliant or
Noncompliant Classified
Driver's License
D-$21.00
C-$25.00
B-$32.00
A-$40.00
REAL ID Compliant or
Noncompliant Classified
Under-21 D.L.
D-$21.00
C-$25.00
B-$32.00
A-$20.00
Enhanced Driver's License
D-$36.00
C-$40.00
B-$47.00
A-$55.00
REAL ID Compliant or
Noncompliant Instruction
Permit
$5.25
Enhanced Instruction
Permit
$20.25
Commercial Learner's
Permit
$2.50
REAL ID Compliant or
Noncompliant Provisional
License
$8.25
Enhanced Provisional
License
$23.25
Duplicate REAL ID
Compliant or Noncompliant
License or duplicate REAL
ID Compliant or
Noncompliant
identification card
$6.75
Enhanced Duplicate
License or enhanced
duplicate identification card
$21.75
REAL ID Compliant or
Noncompliant Minnesota
identification card or REAL
ID Compliant or
Noncompliant Under-21
Minnesota identification
card, other than duplicate,
except as otherwise
provided in section 171.07,
subdivisions 3
and 3a
$11.25
Enhanced Minnesota
identification card
$26.25

From August 1, 2019, to June 30, 2022, the fee is increased by $0.75 for REAL ID compliant
or noncompliant classified driver's licenses, REAL ID compliant or noncompliant classified
under-21 driver's licenses, and enhanced driver's licenses.

(b) In addition to each fee required in paragraph (a), the commissioner deleted text begin shalldeleted text end new text begin mustnew text end collect
a surcharge of $2.25. Surcharges collected under this paragraph must be credited to the
driver and vehicle services technology account under section 299A.705.

(c) Notwithstanding paragraph (a), an individual who holds a provisional license and
has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
169A.35, sections 169A.50 to 169A.53, or section 171.177, (2) convictions for crash-related
moving violations, and (3) convictions for moving violations that are not crash related, deleted text begin shalldeleted text end new text begin
must
new text end have a $3.50 credit toward the fee for any classified under-21 driver's license. "Moving
violation" has the meaning given it in section 171.04, subdivision 1.

(d) In addition to the driver's license fee required under paragraph (a), the commissioner
deleted text begin shalldeleted text end new text begin mustnew text end collect an additional $4 processing fee from each new applicant or individual
renewing a license with a school bus endorsement to cover the costs for processing an
applicant's initial and biennial physical examination certificate. The department deleted text begin shalldeleted text end new text begin mustnew text end
not charge these applicants any other fee to receive or renew the endorsement.

(e) In addition to the fee required under paragraph (a), a driver's license agent may charge
and retain a filing fee as provided under section 171.061, subdivision 4.

(f) In addition to the fee required under paragraph (a), the commissioner deleted text begin shalldeleted text end new text begin mustnew text end
charge a filing fee at the same amount as a driver's license agent under section 171.061,
subdivision 4. Revenue collected under this paragraph new text begin for in-person transactions new text end must be
deposited in the driver services operating account under section 299A.705.new text begin Revenue collected
under this paragraph for mail or online transactions must be allocated as follows:
new text end

new text begin (1) 50 percent must be deposited in the driver services operating account under section
299A.705, subdivision 2; and
new text end

new text begin (2) 50 percent must be deposited in the full-service provider account under section
299A.705, subdivision 3a.
new text end

(g) An application for a Minnesota identification card, instruction permit, provisional
license, or driver's license, including an application for renewal, must contain a provision
that allows the applicant to add to the fee under paragraph (a), a $2 donation for the purposes
of public information and education on anatomical gifts under section 171.075.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end

Sec. 5.

Minnesota Statutes 2020, section 171.061, subdivision 4, is amended to read:


Subd. 4.

Fee; equipment.

(a) The agent may charge and retain a filing fee deleted text begin of $8deleted text end for each
applicationdeleted text begin .deleted text end new text begin as follows:
new text end

new text begin (1)
new text end
new text begin New application for noncompliant driver's license
new text end
new text begin $
new text end
new text begin 11.00
new text end
new text begin (2)
new text end
new text begin New application for REAL ID compliant driver's license or
enhanced driver's license
new text end
new text begin $
new text end
new text begin 16.00
new text end
new text begin (3)
new text end
new text begin Renewal application for REAL ID compliant driver's license,
noncompliant driver's license, or enhanced driver's license
new text end
new text begin $
new text end
new text begin 11.00
new text end

Except as provided in paragraph (c), the fee deleted text begin shalldeleted text end new text begin mustnew text end cover all expenses involved in
receiving, accepting, or forwarding to the department the applications and fees required
under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and 171.07, subdivisions
3 and 3a.

(b) The statutory fees and the filing fees imposed under paragraph (a) may be paid by
credit card or debit card. The driver's license agent may collect a convenience fee on the
statutory fees and filing fees not greater than the cost of processing a credit card or debit
card transaction. The convenience fee must be used to pay the cost of processing credit card
and debit card transactions. The commissioner deleted text begin shalldeleted text end new text begin mustnew text end adopt rules to administer this
paragraph using the exempt procedures of section 14.386, except that section 14.386,
paragraph (b), does not apply.

(c) The department deleted text begin shalldeleted text end new text begin mustnew text end maintain the photo identification equipment for all agents
appointed as of January 1, 2000. Upon the retirement, resignation, death, or discontinuance
of an existing agent, and if a new agent is appointed in an existing office pursuant to
Minnesota Rules, chapter 7404, and notwithstanding the above or Minnesota Rules, part
7404.0400, the department deleted text begin shalldeleted text end new text begin mustnew text end provide and maintain photo identification equipment
without additional cost to a newly appointed agent in that office if the office was provided
the equipment by the department before January 1, 2000. All photo identification equipment
must be compatible with standards established by the department.

(d) A filing fee retained by the agent employed by a county board must be paid into the
county treasury and credited to the general revenue fund of the county. An agent who is not
an employee of the county deleted text begin shalldeleted text end new text begin mustnew text end retain the filing fee in lieu of county employment or
salary and is considered an independent contractor for pension purposes, coverage under
the Minnesota State Retirement System, or membership in the Public Employees Retirement
Association.

(e) Before the end of the first working day following the final day of the reporting period
established by the department, the agent must forward to the department all applications
and fees collected during the reporting period except as provided in paragraph (d).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022, and applies to applications
made on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2020, section 299A.705, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Full-service provider account. new text end

new text begin (a) The full-service provider account is created
in the special revenue fund, consisting of fees described in sections 168.33, subdivision 7,
and 171.06, subdivision 2, and any other money donated, allotted, transferred, or otherwise
provided to the account.
new text end

new text begin (b) Money in the account is annually appropriated to the commissioner of public safety
to distribute to full-service providers, as defined in section 168.002, subdivision 12a. At
least quarterly, the commissioner must distribute the money in the account to each full-service
provider that was in operation during that quarter based proportionally on the number of
transactions completed by each full-service provider.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end