License office "pay-to-play' in jeopardy

Senate debates issue day after judge rules it's illegal

Missouri lawmakers apparently are reaching the same conclusion as Cole County Circuit Judge Dan Green: Awarding Revenue department fee offices based on a promise to pay the state a portion of the office income is illegal.

Green made that finding in a three-page judgment issued Wednesday: "The "Return to State' component in the procurement ... is unlawful in that there is no statutory authority" for it.

His ruling came in a lawsuit filed last Nov. 25 by Lee's Summit License LLC against the state Office of Administration.

Lee's Summit LLC had operated the state license office in Lee's Summit since 2009, but was the losing bidder out of two that responded to the state's 2013 request for proposals.

The company's lawsuit raised six different counts, but Green only ruled on a single count, dismissing the other complaints as moot.

The Revenue Department now awards contracts to run offices that issue vehicle and driver's licenses in part based on how much of the profit bidders promise to pay back to the state. Bidders would lose 5 percent of their evalution points if they balked at the "Return to State" component.

The lawsuit also complained OA's handling of the bid process violated state law and its own regulations.

Green ruled the contract OA awarded last year to the other bidder "is void and of no legal effect." He also blocked the state and its employees "from taking any steps to implement or otherwise carry out" the contract.

While Green's order could be appealed, the Legislature is working on a proposal that would prohibit OA from giving "points ... on a request for proposal for a contract license office to a bidder for a return-to-the-state provision offer."

Sen. Ryan Silvey, R-Kansas City, said during Thursday's debate: "This would eliminate the "pay-to-play' system that the Department of Revenue has put into place for fee office bids."

The House passed the measure April 23 by a 138-4 vote, adopting an emergency clause by a 123-17 margin.

The emergency clause means the law would go into effect immediately, as soon as the governor signed it.

After adding a provision affecting St. Louis' convention center, the Senate sent the bill back to the House on a 33-0 vote.

A decade ago, the Matt Blunt administration began awarding some license offices by competitive bids rather than using the old patronage system.

Lawmakers in 2009 extended the bidding process to all license offices.

Some lawmakers have complained that "return to state" provisions put nonprofit groups that want to operate the license offices at a disadvantage when bidding against for-profit businesses.