State withholding final 3M payment for new DMV software

? Topeka (ap) — Kansas Revenue Secretary Nick Jordan said Monday that the state continues to withhold part of the payment to the company responsible for the new motor vehicle registration system while problems are being resolved.

Glitches have forced residents throughout Kansas to wait in long lines to renew their tags since the $40 million system went online in May.

Jordan told the Topeka Capital-Journal the final 10 percent of a $25 million contract with 3M Co. is being withheld.

“3M is working to get those cleaned up,” Jordan said. “The system seems to be stabilizing and doing good, except for these localized issues.”

There’s no timetable for making the payment. However, the Department of Revenue is delaying the next phase of its computer modernization that involves driver’s licenses. That contract is also being handled by 3M.

“We obviously want to get this first phase where we want it before we start talking too much about that,” Jordan said of the driver’s license system.

The division rolled out the upgraded system in early May, and county treasurers had to stop taking vehicle registrations, driver’s license applications and other related business for about a week during the installation, creating backlogs. Other problems with the system have hampered counties’ efforts to deal with the backlog, even as residents come in with new business.

Jeannine Koranda, spokeswoman for the Department of Revenue, said part of the problem was that 73,000 vehicle records didn’t convert correctly to the new system. Issues with pieces of missing or incorrect information on records that were allowed under the old system weren’t accepted by the new software.

She said those problems took time to fix but were being worked out.

Republican Gov. Sam Brownback’s administration inherited the project — the first overhaul of the division’s computer system since the mid-1980s — from the administration of his Democratic predecessor, Mark Parkinson. The problems have sparked a debate over whether the project was flawed, Brownback’s administration rolled it out too quickly or some county treasurers neglected training and staffing.

Members of the Legislative Post Audit Committee authorized an investigation in July to examine the entire contract and implementation of the new system. The bipartisan request for an audit reflected frustration legislators were hearing from constituents and county officials.