Overview of DVS Policy Bill

The DVS policy bill makes several housekeeping changes to various permits and vehicle registration sections to ensure that current business practices are consistent with the statutory provisions. In other areas, DVS proposes more substantive policy changes that impact motor vehicle dealers and grants the commissioner necessary authority to conduct federally required criminal background checks of certain employees.

Permits

DVS issues the 30-day base plate generally for any out-of-state commercial vehicle that is not registered to operate in Minnesota. This bill removes the reference to the enumerated, transitory business types of circuses, carnivals or other amusement attractions in order to clarify its general applicability.

The drive-away in-transit license plate is issued for the temporary purpose of transporting vehicles in transit from one destination to another within the state. In response to numerous reports of fraud and misuse of this plate as permanent vehicle registration from out-of-state law enforcement agencies, DVS is amending this statute to further clarify that this license plate is valid only in Minnesota.

The Prorate unit may issue a temporary permit to motor carriers that have a short-term need for out-of-state registration. Proposed changes in the bill define “on an occasional basis” to mean no more than one permit per vehicle within a 30-day period. This amendment would codify longstanding issuance policy in this area.

DVS is proposing to repeal the “one-way trip permit” since a recent review of all motor vehicle-related permits revealed that this type of permit has not been issued for over twenty years.

Enhanced Driver’s License/Identification Card:

Enhanced driver’s license and enhanced identification cards (EDL/EID) are optional identity documents and can be used for cross-border travel purposes (land and sea only) and cannot be issued for a period longer than eight years. These identity documents cost more than a regular driver’s license or identification card due to the security features of the card.

Because persons age 65 or older can receive State ID cards at a reduced rate and the card is valid for the person’s lifetime, the amendments to these sections clarify that neither the reduced fee for a State ID card, nor the lifetime issuance provision, apply to an EID for a person age 65 or older.

The bill also adds new language authorizing the commissioner to obtain criminal background checks on employees whose job responsibilities include EDL-EID issuance. These background checks are required by the State of Minnesota Business Plan of Implementation of Enhanced Driver’s License and Identification Cards. However, in order to conduct these criminal background checks, the FBI must be able to cite a specific state statute that authorizes the background checks.

Commercial Driver’s License

DPS must also conduct annual background checks, of certain Exam employees who administer either the knowledge or skills test for commercial driver’s license (CDL) applicants. FMCSA issued a final rule in

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May 2011 in which this requirement was adopted. As with the EDL background checks, the FBI must be able to cite a specific state statute that authorizes the background checks.

Pursuant to the same federal rule, DVS is amending the definition of “valid medical examiner” to clarify that a valid medical examiner must be certified and listed on FMCSA’s national federal registry of medical examiners.

Dealers

Specific provisions governing permissible and prohibited activities exist for all categories of motor vehicle dealers except the used vehicle parts dealer. The amendment of this new subdivision adds permissible and prohibited activities for a used vehicle parts dealer. This change will promote uniform regulation of all dealers.

A limited use dealer license is issued to a nonprofit organization whose primary business in the transfer of vehicles is to raise funds for the corporation. DVS is proposing to add commercial office space requirement for a limited use dealer so that it have the same minimum place of business requirements as a broker or wholesale dealer. This will facilitate DVS’ ability to conduct inspections and/or audits of dealer records and files and make it easier for customers to locate these dealers.

The amendments in this section remove this one-year wait requirement for an applicant whose new dealer license is denied. This requirement potentially causes undue hardship, particularly for a small business owner, by having to wait one year from the date of license denial before reapplying.

Current requirements for reporting the sale of both late-model/high-value and older model vehicles that are being dismantled or destroyed are inconsistent. In order to prevent re-titling of junked vehicles, DVS is proposing to clarify these requirements and reduce the time in which a dealer has to notify DVS from 30 days to 10 days.

Motor Vehicle Registration

Other technical amendments clarify that the current vehicle registration practice is to register all passenger vehicles for a minimum period of 12 consecutive months, as opposed to a calendar year period. They also clarify that any exception to the 12 month registration period is for fleet registration and remove an archaic reference to the registrar at Saint Paul.

The design specification of certain veterans special plates require that the first letters of the words describing the war or type of veteran be “stacked” on the face of the license plate. Due to readability issues raised by law enforcement, the design has since been modified and DVS no longer issues veterans special plates with this “stacked” design specification. Amendments to this statute make this clarification.

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