2006 Minnesota Statutes

168.187 INTERSTATE REGISTRATION AND RECIPROCITY.
    Subdivision 1. Declaration of policy. It is the policy of this state to promote and encourage
the fullest possible use of its highway system by authorizing the making of agreements,
arrangements, and declarations with other jurisdictions, for reciprocal recognition of vehicle
registrations and/or for proportional registration, with respect to vehicles registered in this state
and such other jurisdictions, thus contributing to the economic and social development and
growth of this state. It is the policy of this state to agree with other states that no vehicle shall pay
more than the equivalent of one full registration fee per annum.
    Subd. 2. Definitions. (1) The words, terms and phrases defined in section 168.011, when
used in this section, shall have the same meanings herein as is ascribed to them in section 168.011,
unless the context otherwise requires, or unless a different definition is given in this section.
(2) The words and phrases hereafter defined in this section shall have the meanings
respectively ascribed to them when used in this section, except when the context otherwise
requires.
    Subd. 3. State. "State" means a state, territory or possession of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, a foreign country and a state or province of a
foreign country.
    Subd. 4. Proratable vehicle. "Proratable vehicle" means any vehicle which is operated in
more than one state and used for the transportation of persons for hire, or designed, used or
maintained primarily for the transportation of property.
    Subd. 5. Fleet. "Fleet" means three or more proratable vehicles, at least two of which are
motor-powered vehicles. The motor vehicle reciprocity commission may by agreement with
another state provide that a fleet of this state and another state may consist of a lesser number
of vehicles.
    Subd. 6.[Repealed, 1976 c 149 s 63]
    Subd. 7. Authority for registration agreements, arrangements or declarations. The
commissioner of public safety may enter into any agreement or arrangement with the duly
authorized representatives of other states or make any independent declaration, granting to
vehicles or to owners of vehicles which are properly registered or licensed in another state,
benefits, privileges, and exemptions from the payment, wholly, or partially, of any registration
taxes, fees, or other charges imposed upon such vehicles or owners with respect to the operation
or ownership of such vehicles under the laws of this state, upon such conditions as are specified
therein, provided the terms or conditions of such agreement, arrangement, or declaration are not
inconsistent with any law of this state.
Any such agreement or arrangement shall be made in writing and shall provide that vehicles
properly registered or licensed in this state, when operated upon highways of the other state, shall
receive exemptions, benefits, and privileges of a similar kind or to a similar degree as are extended
to vehicles properly registered or licensed in such state when operated in this state. Any such
declaration shall contemplate and provide for mutual benefits, reciprocal privileges or equitable
treatment of the owners of vehicles registered in this and the other state. Each such agreement,
arrangement, or declaration shall, in the judgment of the commissioner of public safety, be in the
best interest of this state and the citizens thereof and shall be fair and equitable with respect to the
benefits which the agreement brings to the economy of this state.
    Subd. 8. Base state reciprocity. (a) Any agreement, arrangement, or declaration made under
the authority of this section may contain provisions authorizing the registration or licensing in
another state of vehicles based in the other state, which vehicles otherwise would be required to be
registered or licensed in this state, except that those provisions shall not apply to passenger cars.
(b) For the purpose of this section, the owner of a vehicle shall declare the state in which it
is based, but the commissioner of public safety shall make the final determination of the state
in which the vehicle is based for the purpose of determining liability for registration and other
fees and penalties due this state. The commissioner of public safety is governed, to the extent
possible, by the criteria specified in this section, and agreement with the administrator of any
other interested state.
(c) Any agreement, arrangement, or declaration made under this section may grant
exemptions, benefits, and privileges for vehicles in accordance with its terms.
    Subd. 9. Required provisions. (1) Every agreement, arrangement, and declaration, and
amendment thereto and cancellation thereof, shall be in writing and shall be filed in the office of
the commissioner of public safety. A copy of each agreement, arrangement or declaration, and of
each amendment thereto and cancellation thereof, shall be filed in the office of the commissioner
of public safety within ten days after execution or the effective date of the instrument, whichever
is later. The commissioner of public safety shall provide copies for public distribution upon
request and the payment of a reasonable charge.
(2) Every agreement, arrangement and declaration made under authority of this section
shall contain a provision authorizing the commissioner of public safety to cancel and revoke the
agreement with respect to this state upon 30 days' notice to the other party or parties thereto.
(3) All agreements, arrangements, and declarations made under authority of this section
shall contain a provision specifying that no registration, permit privilege or exemption issued or
accruing thereunder, shall excuse the operator or owner of any vehicle from compliance with the
laws of this state, except those requiring registration.
    Subd. 10. Fees for proportional registration. (1) "Total fleet miles" means the total number
of miles operated in all states during the preceding year by the motor vehicles in a fleet during
such year.
(2) "In-state miles" means the total number of miles operated in this state during the
preceding year by the motor vehicles in a fleet during such year.
(3) The registration fees for proratable vehicles of a fleet based in another state shall be
determined as follows:
(A) Divide in-state miles by total fleet miles.
(B) Determine the total amount which would be required under the laws of this state for full
registration of each and every vehicle in the fleet, at the regular annual or applicable fees, for
the unexpired portion of the registration year.
(C) Multiply the sum obtained under clause (3)(B) by the quotient obtained under clause
(3)(A).
(4) The registration fees for proratable vehicles of a fleet based in this state shall be
determined as follows:
(A) Divide in-state miles plus all other fleet miles not subjected to charges in other states nor
declared for other prorate agreement states by total fleet miles.
(B) Determine the total amount which would be required under the laws of this state for full
registration of each and every vehicle in the fleet, at the regular annual or applicable fees for
the unexpired portion of the registration year.
(C) Multiply the sum obtained under clause (4)(B) by the quotient under clause (4)(A).
(5) The provisions of this section shall constitute complete authority for the registration of
the proratable vehicles of a fleet upon a proportional registration basis without reference to or
application of any other statutes of this state except as in this section expressly provided.
    Subd. 11. Application for proportional registration. (1) Any owner of one or more fleets
may file an application for proportional registration of the vehicles of one or more of such fleets
with the commissioner of public safety, in lieu of registration of such vehicles under other
sections of this chapter. The application shall be in such form and shall contain such information
as the commissioner shall require.
(2) Applications for proportional registration shall be filed annually at such time or times
as the commissioner establishes by rule. Every application for proportional registration shall at
the time and in the manner required by the commissioner be supported by the payment of the
registration fees in the amount determined in the manner provided in subdivision 10.
    Subd. 12. Registration of proratable vehicles. (1) The commissioner of public safety
shall register proratable vehicles of a fleet upon application and payment of registration fees as
provided in subdivision 11. Payment of an additional fee for each vehicle so registered may be
required by the commissioner in an amount not to exceed $5 per motor powered vehicle, for
issuance of a plate, sticker, or other suitable identification for each vehicle. A registration card
shall be issued for each vehicle registered, which shall appropriately identify the vehicle for which
it is issued. Such registration card shall be carried in or upon the vehicle for which it has been
issued, at all times, except that the registration cards for all vehicles in a combination of vehicles
may be carried in or upon the vehicle supplying the motive power.
(2) Fleet vehicles registered as provided in (1) shall be deemed fully registered in this state
for any type of movement or operation, except that when a state grant of authority is required for
any movement or operation, no such vehicle shall be operated in this state unless the owner or
operator thereof has been granted authority or rights therefor by the state and unless said vehicle
is being operated in conformity with such authority or rights. No registration under this section
shall excuse the owner or operator of any vehicle from compliance with the laws of this state,
except those requiring registration and licensing.
    Subd. 13. No proportional registration in only one state. The right of proportional
registration of fleet vehicles authorized by this section, or by any agreement, arrangement, or
declaration made under the authority of this section, shall be subject to the condition that each
vehicle proportionally registered shall be proportionally or otherwise properly registered in at
least one other state during the period for which it is proportionally registered in this state.
    Subd. 14. Registration of additional fleet vehicles. Vehicles acquired by the owner after
the commencement of the registration year and added to a proportionally registered fleet shall
be proportionally registered by applying the mileage percentage used in the original application
for such fleet for such registration period to the regular registration fees due with respect to such
vehicles for the remainder of the registration year.
    Subd. 15. Withdrawal of fleet vehicle; credits, accounting. If any vehicle is withdrawn
from a proportionally registered fleet during the period for which it is registered, the owner of
such fleet shall so notify the commissioner of public safety. The commissioner of public safety
may require the owner to surrender cab cards and such other identification devices with respect to
such vehicle. If a vehicle is permanently withdrawn from a proportionally registered fleet because
it has been destroyed, sold or otherwise completely removed from the service of the owner, the
unused portion of the fees paid with respect to such vehicle shall be applied against liability of
such owner for subsequent additions to such fleet during such registration year or for additional
fees upon audit. If at the end of such registration year there remains an unused portion of fees
paid with respect to such permanently withdrawn vehicles, such unused fees shall be applied
against registration fees for the registration year immediately following the year during which
such vehicles were permanently withdrawn. The unused portion of fees of a vehicle permanently
withdrawn from a fleet shall be a sum equal to the amount paid with respect to such vehicle
when it was first proportionally registered in such registration year, reduced by 1/12 of the total
annual proportional registration fee applicable to such vehicle for each calendar month of the
registration year including the month the notice of withdrawal is received by the commissioner of
public safety, except that no unused portion of fees of less than $5 shall be considered or applied.
If an unused portion of fees cannot be applied against registration fees for the registration year
immediately following, an application for refund of the unused portion may be made to the
commissioner, who shall make such rules as may be required for payment of such refund.
    Subd. 16. New fleets. The initial application for proportional registration of a fleet shall state
the mileage data with respect to such fleet for the preceding year in this and other states. If no
operations were conducted with such fleet during the preceding year, the application shall contain
a full statement of the proposed method of operation and estimates of annual mileage in this
and other states. The commissioner of public safety shall determine the in-state and total fleet
miles to be used in computing the proportional registration fee for the fleet. The commissioner
of public safety may adjust the estimate in the application if the commissioner is not satisfied
with its correctness.
    Subd. 17. Trip permit. Subject to agreements or arrangements made or entered into pursuant
to subdivision 7, the commissioner may issue trip permits for use of Minnesota highways by
individual vehicles, on an occasional basis, for periods not to exceed 120 hours in compliance
with rules promulgated pursuant to subdivision 23 and upon payment of a fee of $15.
    Subd. 18. Refusal of proportional registration. The commissioner of public safety may
refuse proportional registration of vehicles based in another state on finding that such other
state does not grant similar registration privileges to fleet vehicles based in this state and that
such refusal is in the best interest of this state.
    Subd. 19. Preservation of records; audit. Any owner whose application for proportional
registration has been accepted shall preserve the records on which it is based for a period of four
years following the date of its filing. Each acceptance shall be conditioned upon agreement of the
owner to make such records available to the commissioner of public safety, at the commissioner's
request, for audit as to accuracy of computations and payments and assessments of deficiencies or
allowances for credit. If any owner fails to make records available to the commissioner of public
safety upon request or fails to maintain records from which the owner's true liability may be
determined, the commissioner may, 30 days after a written demand for availability of records
or notification of insufficient records, impose an arbitrary assessment of liability based on the
commissioner's estimate of the true liability of such owner as determined from information
furnished by the owner, information gathered by the commissioner at the commissioner's own
instance, information available to the commissioner concerning operations by similar owners and
such other pertinent information as may be available to the commissioner.
    Subd. 20. Joint or reciprocal audits. The commissioner of public safety may make
arrangements with the commissioner of transportation and with agencies of other states
administering motor vehicle registration laws for joint or reciprocal audits of any owner.
    Subd. 21. Assessment or claim upon audit. Upon audit, the commissioner of public safety
shall assess for any deficiencies found to be due. No assessment for deficiency or claim for credit
may be made for any period for which records are not longer required. Any sums found to be
due and owing upon audit shall bear annual interest of six percent from the date when they
should have been paid until the date of actual payment. If in the judgment of the commissioner of
public safety the deficiencies are the result of bad faith or an attempt to evade payment under this
section, a penalty of 25 percent shall be added to the deficiency.
    Subd. 22. Relation to other state laws. The provisions of this section shall constitute
complete authority for the registration of fleet vehicles upon a proportional registration basis
without reference to or application of any other statutes of this state except as in this section
expressly provided.
    Subd. 23. Proportional registration not exclusive. Nothing contained in this section
relating to proportional registration of fleet vehicles shall be construed as requiring any vehicle to
be proportionally registered; if it is otherwise registered in this state for the operation in which it
is engaged including, but not by way of limitation, regular registration, temporary registration, or
trip permit or registration.
    Subd. 24. Proportional registration; administrative agreement or arrangement. The
commissioner of public safety may enter into agreements or arrangements with other states on
behalf of this state for proportional registration of proratable vehicles in the manner provided in
this section for the purpose of facilitating the administration thereof. In addition, the commissioner
may make arrangements or agreements with other states for the exchange of information for audit
and enforcement activities in connection with such proportional registration. The registration of
fleet vehicles under this section shall be subject to the rights, terms and conditions granted or
contained in any applicable agreement or arrangement made by the commissioner under the
authority of this section.
    Subd. 25. Appeal procedure. Any fleet owner operating under license and fee procedures of
this section, upon disagreement with the commissioner of public safety in the commissioner's
administration of this section, may petition in writing to the commissioner stating clearly the
rationale for disagreement with any procedure or decision. The commissioner shall rule on the
reconsideration petition after a hearing held as a contested case pursuant to chapter 14.
    Subd. 26. Delinquent filing or payment. If a fleet owner or owner-operator licensed under
this section and chapter 168D is delinquent in either filing or paying the international fuel tax
agreement reports for more than 30 days, or paying the international registration plan billing for
more than 30 days, the fleet owner or owner-operator, after ten days' written notice, is subject to
suspension of the apportioned license plates and the international fuel tax agreement license.
    Subd. 27. Prohibited operation. The commissioner of public safety shall refuse to issue a
vehicle registration, license plate, or permit to a vehicle licensed under this section if the vehicle
is assigned to a commercial motor carrier who has been prohibited from operating in interstate
commerce by a federal agency with authority to do so under federal law.
The commissioner of public safety may revoke the registration of a vehicle licensed under
this section if the vehicle is assigned to a commercial motor carrier who has been prohibited from
operating in interstate commerce by a federal agency with authority to do so under federal law.
If the prohibition by the federal agency is rescinded, the commissioner of public safety may
reinstate a vehicle registration under this section if registration taxes and fees have been paid.
History: 1971 c 457 s 1; 1973 c 582 s 3; 1974 c 522 s 1; 1976 c 149 s 35-43; 1980 c 614 s
123; 1982 c 424 s 130; 1985 c 248 s 70; 1986 c 444; 1987 c 383 s 2; 1989 c 195 s 1; 1992 c 581 s
9,10; 1993 c 13 art 1 s 29; 1993 c 281 s 4; 1997 c 230 s 1; 1998 c 299 s 30; 2000 c 426 s 10;
2002 c 371 art 2 s 20; 2004 c 295 art 1 s 8; 2006 c 212 art 1 s 7