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LICENSING SERVICE FEES <br />Position: <br />Washington County supports legislation to fully reimburse counties and deputy registrars for services <br />provided for the benefit of the State. This business model, when fully funded, allows the county to provide <br />a wide variety of deputy registrar services and ensures services are available throughout Minnesota. <br />Issue: <br />The recent and ongoing implementation of the MN Licensing and Registration System (MNLARS) and the <br />2018 implementation of Real ID increases the costs of license center operations by moving data entry <br />from the state to the deputy registrar offices, requiring additional background checks for employees, and <br />increasing transaction time. In addition to these major operational changes the county is required to <br />provide approximately 18,000 no fee transactions per year for driver's license and motor vehicle services <br />such as; motor vehicle sticker address changes, driver's license status updates, and disability certificates. <br />The deputy registrar portion of the license fee is set by statute and without legislative action it cannot be <br />increased to provide adequate funding for the staff time and other associated expenses deputy registrars <br />are incurring. Each year the license and service centers managed by Washington County complete <br />approximately 300,000 transactions on behalf of the state. In 2016, the county collected and sent over <br />$36.5 million to the State of Minnesota. In order to maintain these important services and a distributed <br />service model throughout the state, the fee for service must adequately cover costs. <br />Support and Opposition: <br />Support will come from the Minnesota Deputy Registrars Association and the Minnesota Association of <br />County Officers. There may be opposition from various special interest groups. The legislature did <br />consider deputy registrar fee increases for Real ID costs last legislative session but ultimately decided that <br />any action was premature. <br />Previous Consideration: <br />The County Board has a long history of prioritizing legislation that provides local taxpayer protection and <br />allows the county to deliver high quality core services. <br />No Action: <br />If no action is taken the county board may need to consider providing levy support for license services or <br />eliminating this core function. <br />Financial Implications: <br />Increasing the fee for service retained by the provider to a level that is adequate to offset wage, benefit, <br />facility, and supply costs will allow the county to continue to provide a wide variety of services without <br />property tax levy support. <br />Contact Person: <br />Jennifer Wagenius, Director <br />Property Records and Taxpayer Services <br />651-430-6182 <br />Jennifer.wagenius@co.washington.mn.us <br />20 <br />