House OKs more funding for fixing MNLARS, aid to deputy registrars

Minnesota lawmakers on Thursday continued efforts to clean up the mess caused by a botched rollout of the state’s new motor vehicle license and registration system in 2017, giving the OK to more funds for fixes and aid to the businesses most impacted by the failure.

The House passed HF861, a bill that would appropriate $15.7 million in deficiency funding for further fixes to the Minnesota License and Registration System, known as MNLARS, this fiscal year.

Sponsored by Rep. Rick Hansen (DFL-South St. Paul), the legislation would also provide $10 million in aid for deputy registrars, the roughly 170 local DMV offices across the state that took a financial hit dealing with the malfunctioning system.

OK’d on an 89-33 vote, the bill now goes to the Senate. There, Sen. Scott Newman (R-Hutchinson) is the sponsor.

A recent report from the Office of the Legislative Auditor cast blame for the fiasco far and wide among the leaders of the state’s public safety and information technology agencies.

Republican lawmakers have complained, though, that assistance for registrars hasn’t come quickly enough. Former Gov. Mark Dayton vetoed $9 million in aid earmarked for the local DMV offices last May, saying he supported reimbursing deputy registrars but not without a commitment to continue funding fixes to MNLARS.

The proposed $15.7 million appropriation this year would fund continued development work on MNLARS, as well as additional customer service in the Department of Public Safety.

The funds would be split accordingly:

• $6.77 million for ongoing MNLARS motor vehicle software;
• $5.5 million for development work on the driver’s license computer system; and,
• $3.47 million for additional DVS customer service staffing.

Under the legislation, reimbursement to deputy registrars would be calculated using the following formula:

• 10 percent of available funds allocated equally among all deputy registrars;
• 45 percent of funds allocated proportionally based on the number of transactions completed between Aug. 1, 2017 and Dec. 31, 2018 where the deputy registrar retains a filing fee compared to the total number of transactions where a filing fee is retained by all deputy registrars during that period; and
• 45 percent of funds allocated proportionally based on the number of transactions completed between July 1, 2014 and June 30, 2017 where the deputy registrar retains a filing fee compared to the total number of transactions where a filing fee is retained by all deputy registrars during that period.

Deputy registrars would have to submit documentation to Minnesota Management and Budget showing evidence of increased costs and lost revenue due to MNLARS. Businesses that receive a grant under the bill would also be required to remain operating as a deputy registrar for at least one year following the receipt of the aid, or be forced to pay back an amount equal to the grant.