Full Report (PDF) - Office of the Legislative Auditor

IntroductionMinnesota uses a state-regulated system of90 public and 78 private dep­~ registrars to register and title motor vehicles and boats, renew drivers'licenses,and register snowmobiles and all-terrain vehicles. TheDeparbnent of Public Safety (DPS) has primary responsibility for regulating thesystem. It can appoint and, for cause, discontinue a deputy registrar, and it sets criteriagoverning the establishment of new deputy registrars.There is a variety of viewpoints about how a deputy registrar system should be designed.Proponents of a public system contend that private deputy registrars earnlarge profits and that replacing them with public deputies would provide additionalrevenue that could finance other programs or reduce taxes. Proponents of aprivate system contend that private deputies are more efficient and provide bettercustomer service than public deputies, and that they improve access in rural communities.Also, some critics argue that there is a lack of competition in the systemthat discourages improvements in customer service and leads to excessive profits.Finally, the 1984 law that authorizes the appointment of corporations as deputyregistrars is controversial because it allows deputy registrars to be sold.Because of these concerns, the Legislative Audit Commission directed the ProgramEvaluation Division to study the deputy registrar system. In our study, weasked:• How does Minnesota's deputy registrar system work?• How do other states provide motor vehicle and driver's licenseservices?oHow good is customer service? How long do customers wait beforebeing served? How accessible are deputy registrar offices? What aredeputies' business hours? How does customer service vary by size andtype of deputy registrar (public and private)?• What are the revenues and expenses of deputy registrars? How doesthe cost per transaction vary among public deputies? How do profitsvary by size of private deputy?• What options are there for improving customer service or reducingcosts?