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Committee pulls deputy-registrar reimbursement open appropriation for more work
Summary
Committee debated a staff amendment to authorize recurring reimbursements to deputy registrars/drivers license agents estimated at $2,189,000 per year but removed the item from immediate adoption pending further discussion of an open appropriation mechanism.
Conference committee members debated proposed statutory language to authorize recurring reimbursements to deputy registrars and driver's license agents for previously unpaid or ‘no-fee’ transactions but removed the item from the package for additional review.
Staff described the A34 amendment as creating a statutory (open) appropriation for reimbursement payments estimated at about $2,189,000 per year from the Driver and Vehicle Services (DVS) operating account. Department staff and the deputy commissioner said the intent was to reimburse deputy registrars and driver's license agents for work they currently perform without explicit statutory compensation.
Committee members voiced two main concerns. Some lawmakers opposed converting the payment into an ongoing open appropriation—an account that automatically pays as claims are submitted—citing fiscal control and the risk of an unbounded liability. Others, including members representing rural areas, emphasized that deputy registrars and private agents complete necessary in-person transactions that cannot be finished online and should be compensated.
MnDOT and DVS officials said the transactions are tracked in the Mindrive system and that DVS had estimated the annual amount. Deputy Commissioner Cassandra O'Hearn and Director Pong Zhang explained the proposal was intended to mirror existing fee reconciliation processes and to prevent “first-come, first-served” mechanics that would leave unpaid vendors.
Because committee members could not resolve how to structure the appropriation (open vs. fixed biennial amount, temporary vs. ongoing), the committee removed the deputy-registrar reimbursement line from the Senate offer for further work. Members asked DVS and authors to develop alternatives — for example, a sunset, a biennial appropriation, or clearer reconciliation processes — and returned the item to a smaller subgroup of legislators for follow-up.
Quotes: "This is an attempt to to try to make them whole," Director Pong Zhang said of deputy registrars. Representative Olson noted the work is documented and reimbursable; Representative Cagle and others pressed for guardrails against a runaway open appropriation.
Next steps: committee staff and agency representatives will continue to refine reimbursement language and examine fiscal controls and sunset options before returning to the committee.
