Our state capitol has been a beehive of nonstop activity since the session started six weeks ago.
Typically, after a November election that involves all legislative seats from both the House and Senate such as last year, the new session begins slowly for the benefit of new members with agency overviews in committees and very little floor action. This is especially typical when that previous election results in 68 entirely new members to our legislature (a whopping 1/3 of all lawmakers)!
However, now that Minnesota is no longer a “divided” legislature that previously featured split control between democrats and republicans controlling the House and Senate, the new DFL majorities now achieved in both chambers (and with a DFL governor) has hit the ground running. Regardless of your political viewpoint, it has been amazing at the speed in which the DFL has pursued and passed some of their priority issues already.
Unfortunately, but not surprising, critical deputy registrar matters did not rise to the expediency of those initial issues. However, both transportation chairs have assured us that deputy registrar relief that has languished in the past WILL BE ACHIEVED AND PASSED THIS SESSION!
MDRA has been working with both chairs to arrive at an equitable outcome for us, mindful that the new political landscape is now largely void of partisan gridlock that contributed to past stalemates for us. These discussions have been very positive, and helps smooth a path that ensures the best outcome for us with chairs now from the same party. Ultimately deputy registrar language will be incorporated into their separate omnibus bills that they will carry, and the closer each version is to each other help minimize any prolonged debates and negotiations when these bills ultimately arrive in conference committee (which will be DFL controlled as well).
Many of you have asked why there hasn’t been any legislation introduced yet on our behalf, which is a valid question! New (but previous) Senate Transportation Chair Scott Dibble wants the initial bill to be introduced by Sen. John Jasinski (R-Faribault) in recognition of his past efforts even though he now is in the minority (but he remains the lead republican on the committee). His legislation has been waiting for the reviser’s office to create it, and we expect it any day now. Once he receives the bill, he will send a copy to Rep. Steve Elkins (DFL-Bloomington) to introduce it in the House. Then we begin with its initial hearing in both the house and senate committees, where it will be likely amended and laid over for inclusion in the yet to be created omnibus bills.
It is Sen. Jasinski’s desire to introduce language as it was agreed to in last year’s conference committee which was based on the King report before session adjourned (and resulted in nothing passed). We view that past agreement as a starting point to build from. To summarize, that agreement featured a $3 DL filing fee increase except for initial Real ID/EDL applications which had an $8 increase. It also contained an annual $7 million online sharing pool for deputy distribution, but for only two years. Policy provisions included an appeal process for access revocation as well.
The biggest stumbling block to that past language and our “partner” DVS remains in the sharing of any online filing fees. Only the DL filing fee was included in the governor’s budget recommendation which was otherwise silent regarding any other King recommendations. Rather, the Walz budget proposed doing DL renewals online every other cycle which only exacerbates our problem.
Obviously last year’s conference committee agreement combined with the administration’s proposed budget would represent a major step backward for us. However, MDRA has come up with a plan to address this online problem which will only grow worse in the future if left unchecked.
Recognizing that DVS will not “share” any of the filing fees they’ve been accumulating, and the likelihood that the DFL majorities won’t want to fight them or the administration on this, we need to create a new revenue stream tied to online transactions that can be dedicated back to deputy reimbursement.
Using the recent “kiosk law” as precedent, we are proposing a $5 surcharge to be placed on all online transactions conducted with the state. Those funds would be separate from what DVS realizes and could generate $15 million annually for deputy distribution. Kiosks currently require a $5 surcharge for the vendor, but this online surcharge would go to deputies. This would include renewals, pro-rate, DL, and anything yet to be unveiled by our “partner”. Both chairs like the approach and believe it is a smart method to address the King report recommendation on this subject without negatively affecting DVS.
While we believe this online surcharge is the most critical element of our legislative agenda this year, we remain committed to raising our filing fees as well. We are aiming for an across the board increase of $8 for all DL regardless of type, a similar $8 increase in title and pro-rate, and a $4 increase in tab renewals. We are also seeking filing fee increases with DNR transactions (but not game and fish), which have not been addressed in 20 years for the most part. A similar surcharge for DNR online transactions has also been discussed with the environment committee chair, but that aspect may have to wait for the time being.
We have much to be optimistic and excited about this year at the capitol! However, this is always a “team effort” and your individual involvement from across the state is especially critical when so many new lawmakers need to be informed and understand the critical part you perform in their district. As always, we encourage you to reach out to your legislators and introduce yourself—or reintroduce yourself if the case may be. Explain the challenges your office has. Describe the realities you face, especially after MNLARS and MNDRIVE forced more work to your operation without due compensation. Relay how online transactions have decimated your revenue flow.
Lawmakers don’t need to be a genius to realize that our 40% more workload, combined with 50% less in filing fee revenue lost to online transactions, plus stagnant filing fee rates amid rising inflation equates to permanent office closures across the state. (Four offices have shuttered in the last year alone.) Incidentally, online renewals are now estimated at 50% of all vehicles (or 3 million vehicles times $7 filing fee) with equates to over $21 million in lost filing fees to DVS alone. Annually.
Lastly, MDRA has set our annual “Day on the Hill” event for Monday March 13 from 10-4 at the capitol. Please try to join your colleagues that day as we press our lawmakers for long overdue action.
Thank you deputies, and thank you in advance for contacting your lawmakers and hopefully joining us on March 13. Details forthcoming soon with “Day on the Hill” specifics! Mark your calendar now!!
Who’s your legislator? Visit www.house.mn or www.senate.mn and follow the prompts!
