x
Breaking News
More () »

Walz supports scrapping MNLARS, spending $73M on new licensing system

Advice from blue ribbon panel is to scrap the licensing and registration software, and buy one from a private vendor.

ST PAUL, Minn. — The governor says he will follow the finding of an independent audit of the embattled MNLARS system that calls for a new, $73 million software to replace the one that was built by the state.

The independent panel of IT experts released a review of MNLARS at a packed Capitol press conference Wednesday. Gov. Walz and legislative leaders have been trying to decide whether to scrap the licensing and registration software system that was built in-house by the Dept. of Public Safety and Minnesota IT Services.

The new system became a political lightning rod shortly after DPS launched it in September of 2017. Some transactions went through easily while others, such as title transfers, would trip up the system leading to delays, forced log-outs and a lot of frustration for customers and those who operate the license bureaus.

Switching to a purchased software system to replace MNLARS will run $73 million, on top of the $100 million originally spent since work began on the system in 2007-2008.

That's $20 million more than the $53 million Gov. Walz had asked lawmakers for just to continue fixing MNLARS. Gov. Walz supports the idea of buying a system from a vendor, but it's up to the legislature to approve the funding.

Lawmakers signaled they're willing to go with the advice of the experts.

"For the first time in a very long time I honestly feel that we see the end of the tunnel," Sen. Scott Newman, the Republican chair of the transportation committee, told reporters.

"And we are going to get there and we are going to do what is best for the people of the State of Minnesota."

RELATED: Auditor's report assigns blame for MNLARS debacle

Rick King of Thomson Reuters headed up the independent expert review. He announced the findings at a Wednesday news conference with Governor Tim Walz and legislators.

"While much good has been done since the failed MNLARS release of 2017, the path going forward for an interim build of the remaining software is risky," King said. "We believe it will be much less risky to select a package software solution, particularly one that is currently in use in at least 12 other states."

When asked why the state didn't simply buy software from a private vendor in the first place, King said nobody was selling a system like that back in 2007.

Initially the state contracted with Hewlett-Packard to build the system, but that relationship ended in 2015 with a system that wasn't yet workable. Minnesota IT Services then took over the design of the MNLARS system, but drew fire from lawmakers after the troubled roll-out in 2017.

RELATED: State seeks more money for MNLARS fix

King said the system could be running and replace the current software in 16 months. It would then take approximately 10 more months to replace the remaining "legacy software" running alongside it.

King said the review team ran an intensive process with more than 50 meetings with stakeholders, talked to 19 deputy registrars, and visited two offices to listen and watch the transactions with citizens.

RELATED: MNLARS audit finds some overcharged or undercharged

Walz called the audit “a way to change how we go about our technology, to go about how we come together to find real working solutions, how we have true accountability for the taxpayers and we start to find those solutions.”

GOP lawmakers lauded the move to a private software vendor, but not without taking a shot at their counterparts across the aisle. 

“For years now, Democrats and MN.IT have insisted that a private vendor was not an option, forcing taxpayers to pour money into the MNLARS disaster, and wasting tens of millions of dollars in the process," said Rep. Paul Torkelson, R-Hanska, Rep. Jim Nash, R-Waconia, and Rep. Dave Baker, R-Wilmar in a joint statement. "We applaud Governor Walz for taking this issue seriously, and listening to recommendations these experts have brought forward. This is the right move for Minnesota, and we look forward to putting the MNLARS mess behind us and ensuring that local DMVs and Deputy Registrars can deliver the basic functions of government our citizens expect."

Scott Lambert of the Minnesota Auto Dealers Association applauded Governor Walz.

"We're happy to finally turn the corner," he said, "and say we're gonna leave this, and move on and find something that works."

Before You Leave, Check This Out