LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6696 NOTE PREPARED: Dec 17, 2024
BILL NUMBER: HB 1494 BILL AMENDED:
SUBJECT: License Plate Information.
FIRST AUTHOR: Rep. Morris BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill removes the requirement that the Bureau of Motor Vehicles (BMV) issue
registration renewal stickers for motor vehicles. The bill also makes conforming changes.
Effective Date: July 1, 2025; January 1, 2026.
Explanation of State Expenditures: Summary - The bill could allow the BMV to stop issuing replacement
year stickers for license plates. Cost savings to the BMV Commission Fund and/or the BMV Technology
Fund would ultimately depend on decisions made by the agency.
Additional Information - An estimated total of 7.64 M annual registration mailings contain replacement year
stickers. The BMV’s negotiated price for these replacement year stickers was reported to be $0.06 per
sticker. Registration card mailings would still be required under law, so cost-savings are limited to
replacement year stickers. Costs for replacement stickers are estimated to be approximately $459,000 per
year.
The BMV reports the registration vendor has already expended funds to stockpile stickers for anticipated
registration renewals through FY 2028. Removing the requirement to distribute replacement year stickers
might result in the vendor recovering these costs through price adjustments for mailings and/or registration
card production, potentially minimizing cost savings through FY 2028.
The BMV could elect to issue null replacement year stickers (that do not include a year) to cover years that
are currently displayed on license plates in circulation. Upon the end of a license plate’s life cycle (10 years),
the BMV could issue replacement license plates that do not have an expiration year printed on them as early
as FY 2026. The BMV reports updating license plate design would not impact vendor contract costs to
change the format of new license plate issuances.
The BMV also reports any change in the license plate design and/or issuance of replacement year stickers
would require STARS system updates, which could increase BMV Technology Fund and/or BMV
Commission Fund expenditures.
HB 1494 1 Explanation of State Revenues: Removing the requirement to display a replacement year sticker on a
license plate could reduce the number of Class C infractions in the state. The maximum judgment for a Class
C infraction is $500, which would have been deposited in the state General Fund. However, any revenue
reduction is likely to be small.
Explanation of Local Expenditures:
Explanation of Local Revenues: If the bill reduces court actions filed where a judgment would have been
entered, local governments would receive less revenue from court fees. However, any revenue reduction is
likely to be small.
State Agencies Affected: BMV.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Cody Eckart, BMV.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1494 2