House, Senate pass differing versions of bills to fund MNLARS fixes

(Updated 10:50 a.m. Tuesday, March 20 with Gov. Mark Dayton's comments)

The House on Monday OK’d $10 million in emergency funding to fix the state’s malfunctioning motor vehicle license and registration system. But big differences between House and Senate versions of the legislation means supplemental dollars for the system, known as MNLARS, could still be a ways off.

As amended to substitute language approved by three House committees, SF3133 was passed 98-27 by the House and will now head back to the Senate. Lawmakers are now expected to convene a conference committee to negotiate a compromise.

Sponsored by Rep. Paul Torkelson (R-Hanska), the House version would appropriate $10 million in Driver and Vehicle Services operating account funds for MNLARS; require a corresponding $10 million reduction in state General Fund appropriations from other, unrelated executive branch agencies; specify how the funds are to be spent; and set strict project tracking and reporting requirements.

Rep. Paul Torkelson, chair of the House Transportation Finance Committee, discusses SF3133 during floor debate March 19 after amending it with language from a bill approved by three House committees. Photo by Paul Battaglia

READ MORE Emergency MNLARS dollars making way through the House, but officials say not fast enough

That bill, though, doesn't have Gov. Mark Dayton's support. Following a Tuesday morning meeting with legislative leaders from both sides of the aisle, Dayton said during a news conference that he "won't cannibalize other agencies" to pay for MNLARS fixes. 
 

"The Senate legislation is acceptable," he said. "The House legislation is not." 

The Senate version, sponsored by Rep. Scott Newman (R-Hutchinson) and passed 47-20 earlier in the day, represents a compromise bill worked out in negotiations over the weekend between Senate Republican and DFL leaders, and officials in the Dayton administration.

It would appropriate $9.65 million to MN.IT and the Department of Public Safety, include $350,000 for the Office of the Legislative Auditor to evaluate progress on fixing MNLARS, and create a new legislative committee to provide close oversight of the project. 

"The conference committee will take some time, but I can assure you that it will take as little time as possible,” Torkelson said. “I've already started negotiating with Sen. Newman. I believe we can reach agreement very quickly.”

WATCH House Floor debate on MNLARS emergency funding, oversight bill 

House DFLers pushed to accept the Senate’s language during floor debate on the bill, saying lawmakers had already dragged their feet in getting additional funding to the state agencies working to fix MNLARS and jeopardizing progress on getting the system fully functional. 

“The Senate has a bill the governor agrees with,” Rep. Sandra Masin (DFL-Eagan) said. “Why wouldn’t you want to start from there? Why do you want to take five steps back?”

The state has already sunk more than $90 million into the MNLARS project, which was supposed to modernize and streamline a decades-old computer system used to issue things like vehicle titles and license tabs. But it has been beset by major problems since it launched last July.

Public Safety and MN.IT officials say the $10 million in funding — part of a larger $43 million request — is needed to keep staff and contractors working on fixing the system that has caused huge headaches for registrars, auto dealers and vehicle owners across the state. The agencies sent 30-day layoff notices to contractors working on the project March 1.