Full Report (PDF) - Office of the Legislative Auditor

BACKGRO~ 13METHODSEach year, Minnesota residents make about 5.6 million motor vehicle, driver's licenseand DNR transactions at deputy registrars and spend about $18.8 million inadministrative fees to support the deputy registIar system. Our research focusedon two important indicators of how well the system is functioning: customer serviceand cost. Since deputy registIars collect over $600 million per year in motorvehicle registration fees and excise taxes, we also considered the security of statefunds when discussing policy options for the state.To analyze customer service, we used several measures, including customer waitingtime, geographic access, days and hoUlS that a deputy registIar is open, andhow often deputy registrars make errors. We made 205 visits to deputy registrarsto measure customer waiting times during the summer and fall of 1993. We alsointerviewed deputy registrars and DPS field representatives who monitor deputyregistrars. To analyze customer access, we mapped the location of deputy registrarsin Minnesota and compared the number of registrars in Minnesota with thenumber of agents in other states, taking into account population and land area. Wecollected data on hoUlS and error rates from the Department of Public Safety.To analyze cost, we obtained financial data from a sample of 101 deputy registrars.We also collected financial data for the front counter and mail operations ofthe Department of Public Safety. We examined the cost per transaction for publicand non-profit deputies, and the profitability of private deputies. To analyze theeconomies of scale, we examined how cost per transaction, profits, and transactionsper employee varied by size of deputy.We interviewed deputy registrars, officials from the Department of Public Safety,the Department of Natural Resources, and the Pollution Control Agency. Finally,to obtain perspective on how other states provide motor vehicle registration anddriver's license services, we conducted telephone interviews with officials fromthe other 49 states and the District of Columbia.COlVlPARISON BETWEEN MINNESOTAAND OTHER STATESTo examine how other states provide motor vehicle and driver's license services,we surveyed all states and the District of Columbia. II We conducted in-depth interviewswith several states, including neighboring states and states that use privateagents to provide tabs, titles, and driver's license renewals. Overall, weconsider the information to be reliable, but it is likely that some data represent"best-guess" estimates of interviewees. In several instances, we were unable to obtaininformation about fees or specific number of public and private agents, becausethe state office had limited information. This usually occurred when11 In all analyses, we treat the District of Columbia as a state.