Deal paves way for $10M to fix MNLARS licensing system
updated at 8:05 p.m.
Minnesota lawmakers reached a compromise Thursday on an emergency funding measure to help fix the state’s troubled vehicle licensing and registration system.
The Senate passed the bill on a 47-17 vote. The House later passed it, 124-6, sending it to Gov. Mark Dayton, who signed it Thursday evening.
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"While this transfer of funds should have been approved weeks ago, I am thankful that Minnesota IT Services and the Department of Public Safety will now have the resources and support they need to retain top talent and make urgently-needed improvements to MNLARS for the next several months," Dayton said.
Under the compromise, the Department of Public Safety would receive $9.65 million from two of the agency’s revenue accounts to continue its work with Minnesota IT Services on MNLARS. Another $350,000 would go to the Office of the Legislative Auditor to conduct periodic reviews of how the system is working. A new legislative steering committee would also keep tabs on the fixes and decide whether to hold back any funding.
It eliminates a contentious House provision that would have required the Dayton administration to pay for the MNLARS fix by cutting $10 million from other state agency budgets. The DFL governor had threatened to veto the bill if it that provision remained.
Rep. Paul Torkelson, R- Hanska, the chair of the House transportation committee, said the House wanted the governor to take financial responsibility for the system's problems.
“I’ve gotten a lot of communications over these last few weeks from a variety of citizens around the state of Minnesota. And virtually all of them have said to me ‘don’t give them another nickel. Don’t throw good money after bad.’”
Problems with the $93 million MNLARS system began with its launch last summer, resulting in long lines and paperwork backlogs. Deputy registrars and auto dealers were among those complaining loudest.
Torkelson noted that some aspects of the system are now working “pretty well” with “millions of successful transactions.”
Republican Senator Scott Newman of Hutchinson, the chair of the Senate transportation committee, said he too has concerns about spending more money on MNLARS. But he’s hopeful that some tighter control of that spending makes a difference.
“I think it’s really a bad idea to give them more money and give it to them so they can spend it in an unfettered fashion. That is precisely why I have been so insistent on this legislative oversight.”
Several lawmakers supported the compromise with reservations.
Sen. Scott Dibble, DFL-Minneapolis, raised concerns that the bill doesn’t allow the agencies to add staff to a call center for MNLARS complaints.
“A number of the complaints that we receive from or constituents are fairly easily resolved with a simple phone call. They’re frustrated that they’re not getting their questions answered.”
Other lawmakers firmly opposed the funding measure.
Sen. Torrey Westrom, R-Elbow Lake, said he’s not sure the state has capability to fix MNLARS. He suggested handing the project over to a private sector company.
“I want to highlight this mess, because it is a mess. As we say on the farm, you stepped in it. The agency has really stepped in it here.”
State officials had wanted the money by March 1, to avoid sending layoff notices to MNLARS contractors.
Dana Bailey, executive director of projects and initiatives at Minnesota IT Services, said two of them have accepted new jobs and others have been interviewing. Still, Bailey was pleased that a compromise on the emergency funding was reached.
“We’re glad that they’re going to send something to the governor that he is going to be able to sign at this point.”
The MNLARS discussion will continue. The state agencies are seeking an additional $33 million this session for ongoing system improvements. There are also bills moving forward to reimburse deputy registrars for their unexpected expenses related to the problems.