State privatizes license bureaus

The state-run licensing bureau operated at 149 Park Central Square, Room 116. Leslie Carter received a state contract to run the office and opened for business May 16 in the same location.

Carter also runs a contract office in Ozark.

The move also creates a second licensing office in Springfield, as contract agent Ben Newhouse opened a private bureau at 1534 S. Glenstone Ave. in the Glen Isle Center.

The closings are part of the state’s larger plan to convert the 10 remaining state-run offices into private enterprises.

Eleven branch offices lost $2.5 million last year and historically have not operated at a profit, according to Maura Browning, the Department of Revenue’s public information officer.

Gov. Matt Blunt announced in January that the state would issue contracts for license bureau office operations, largely because branch office funds were repealed with Amendment 3’s passage last fall. Amendment 3 redirected Missouri Department of Transportation revenues to state and local highway purposes only.

The contract offices conduct the same business as did the state – primarily renewing driver’s licenses and registering motor vehicles – and charges the same processing fees – between $2 and $3.50 for annual renewals.

Those processing fees keep the contract offices afloat.

“Their bottom line depends on how good they do,” Browning said.

The agent incentive structure creates a city rivalry between Newhouse and Carter.

Last year, the downtown office recorded more than 200,000 transactions. Newhouse expects to split those transactions with Carter’s office.

“The first year, our goal is to break even, keep our staff,” said Newhouse, adding that contract agents do not receive payment from the state. “Our big issue is customer recognition of the new location, because people are so accustomed to going downtown.”

Newhouse hopes on-site parking aids in bringing people to his office.

“There is just an awful lot of parking, right up to our front door,” he said, noting that parking helped him get approved as an agent.

Following Blunt’s January announcement, interested agents submitted business plans for the highly sought after offices. Newhouse learned in early April the governor’s office had selected his plan.

“(Parking) was the compelling reason,” he said.

Blunt’s office three months ago gave the Ozark contract office to Carter, who co-coordinated Blunt’s campaign in Christian County. Newhouse also has ties to Blunt’s campaign.

“I’m very grateful for the confidence that Governor Blunt has placed in me,” said Carter, who is a financial adviser by trade.

She hired Barb Ghan as office manager in Springfield, but Carter plans to be involved personally, using her business background to help clients.

“The level of service that is provided to clients in the financial world is also the level of service that we’re going to be providing here,” she said.

Both agents are emphasizing more friendly customer service than the state-run office was known for.

“We have all new faces,” said Carter, adding that customers already have commented on the improved service. “That’s been encouraging.”

Newhouse’s wife, Cathy, and office manager Jennifer Blake will run day-to-day operations.

While none of Carter’s 12 employees are among the 26 that previously worked on the square, Newhouse hired two of the former state workers. Carter said she extended offers, but many chose to transfer to other state jobs to retain salary levels and retirement plans.

Newhouse, who also runs the wealth management department at State Bank of Southwest Missouri, employs 13.

Branch offices in Joplin and St. Louis also closed May 13 and have reopened as contract offices. Nick Myers received the Joplin contract.

A Columbia branch office went private May 2.

There are now more than 170 contract offices throughout the state. The state’s seven remaining branch offices are scheduled to convert by mid-June.

The contract offices now compete with the state’s online vehicle registration renewal program at www.plates.mo.gov.