Minnesota stands to lose more than $20 million in federal highway funds next year because its system of licensing commercial truck drivers violates federal regulations.
An audit of the state's commercial driver's license program found that it could fail to screen out drivers convicted of drunken driving and other criminal offenses, potential terrorists planning to transport hazardous materials without passing federal scrutiny, or applicants fraudulently seeking a license -- under an alias, for example.
While the state's Department of Public Safety is working to address those failures, a separate issue is putting the federal funding in jeopardy. The department has not demonstrated the ability to share data electronically, rather than on paper, with the federal government and other states.
Calling compliance a "top technical priority," state officials say they are confident of meeting a September 2008 deadline to complete testing of the new system or risk forfeiting the funding, which is used for highway improvements.
"The real story is, come next September, if they have it completed or not," said Dan Drexler, division administrator for the federal program that monitors motor carrier safety.
Penalty could double
Minnesota is one of 10 states failing to comply with the regulations. If the problems are not corrected within the next two years, the funding penalty would double to $42 million a year.
The threat of losing the federal highway money comes as the state struggles with funding for its roadways and bridges.