Starting January 1, 2026, Driver and Vehicle Services will be conducting more extensive background checks on dealer license applicants. Now, federal background checks and fingerprinting will be required, in addition to state criminal history searches.
This is a new law that was proposed by DVS and passed during the 2025 Session. The intent of this new requirement was meant to apply only to initial dealer license applications, not existing license renewals. Therefore, MADA didn’t oppose. Unfortunately, a drafting error occurred during the closed-door negotiations when the transportation budget bill was finalized.
DVS has informed MADA that due to the drafting error, the new law needs to be interpreted to apply to all dealer license applications, including renewals. DVS has reiterated to MADA that this was not their intention.
DVS has sent renewal notices to dealers that have triggered many questions to MADA. We have been communicating with DVS to get answers. Here is our advice to dealers based on their responses:
- The new law goes into effect on January 1, 2026. Applications submitted before that date will not be subject to the new background check requirements.
- You can submit your renewal application as many as 60 days in advance of your dealer license expiration. Therefore, dealers with January or February expirations may want to submit their renewals before the end of 2025.
- DVS will provide applicants with detailed instructions for submitting their fingerprints, background check materials, and payment.
- For all dealers, no matter when renewal is due, submit your license renewal applications well in advance of their expiration date to prevent a lapse in status. The background checks will add to the processing time.
- All dealer background checks will be performed by the BCA – which can be submitted by mail or in person. Here is a list of locations throughout the state where dealers can get fingerprinted for the background checks.
- Dealers owning more than one store will only need one background check and set of fingerprints per year. DVS can apply the results of a single background check to multiple license locations.
- Dealers residing outside of Minnesota can get their fingerprinting done at a local law enforcement center; they do not need to come to Minnesota. Applicants will receive detailed instructions from DVS.
During the upcoming legislative session, MADA will be working to pass legislation to correct this error. In the meantime, MADA will continue seeking guidance from DVS and providing that information to our members. Dealers can also email the DVS Dealer Licensing Unit directly or call 651-201-7800 with questions.
