COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0846H.01I Bill No.:HB 207 Subject:Motor Vehicles; Roads and Highways Type:Original Date:February 1, 2023Bill Summary:This proposal modifies provisions relating to motor vehicle inspection requirements prior to sale. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Highway Fund (0644)Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 Highway Patrol Inspection Fund (0297) Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 Total Estimated Net Effect on Other State Funds Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 Numbers within parentheses: () indicate costs or losses. L.R. No. 0846H.01I Bill No. HB 207 Page 2 of February 1, 2023 KB:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net Effect on FTE 000 ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Local Government$0$0$0 L.R. No. 0846H.01I Bill No. HB 207 Page 3 of February 1, 2023 KB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Department of Revenue (DOR) assume the following regarding this proposal: Administrative Impact To implement the proposed legislation the Department will be required to: • Update procedures, correspondence letters and the Department website; • Update the Missouri Titling Manual; • Send Communications to License offices and other Contracted stakeholders; and • Train Staff FY 2024 - Motor Vehicle Bureau Associate Research/Data Analyst 40 Hrs @ $19.90 = $796 Lead Admin Assistant 20 Hrs @ $17.05 = $341 Administrative manager 5 Hrs @ $26.96 = $135 FY 2024 - Strategy and Communications Office Associate Research/Data Analyst 10 Hrs @ $19.90 = $199 Total Cost =$1,471 The Department anticipates that they will be able to absorb these costs. If multiple bills are passed that require department resources, FTE may be requested through the appropriations process. Oversight assumes DOR is provided with core funding to handle a certain amount of activity each year. Oversight assumes DOR could absorb the costs related to this proposal. If multiple bills pass which require additional staffing and duties at substantial costs, DOR could request funding through the appropriation process. Officials from the Missouri Highway Patrol (MHP) assume the following regarding this proposal: The fiscal impact to the state of Missouri on vehicle inspections equates to $1.50 per each additional used vehicle safety inspected prior to sale, with $1.00 deposited into the Highway Fund (0644) and $0.50 deposited into Highway Patrol’s Inspection Fund (0297). It is unknown how many additional inspections, per year, would be conducted with this proposed legislation. L.R. No. 0846H.01I Bill No. HB 207 Page 4 of February 1, 2023 KB:LR:OD Oversight notes, in current statute, all vehicles in Missouri must have an inspection prior to being sold, unless the vehicle is sold for junk, salvage, or rebuilding, or for vehicles sold at public auction or from dealer to dealer. This proposal requires a motor vehicle safety inspection be provided to the purchaser, unless the vehicle has less than 50,000 miles within three years of its model year. Oversight is unable to determine how many more vehicles will require a safety inspection as a result of this proposal; therefore, Oversight will reflect an “Unknown, but less than $250,000” fiscal impact to the Highway Fund and the Highway Patrol Inspection Fund. Officials from the Missouri Department of Transportation and Department of Natural Resources each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. FISCAL IMPACT – State GovernmentFY 2024 (10 Mo.) FY 2025FY 2026HIGHWAY FUNDRevenue – MHP – increase in the number of inspections ($1 per) Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 ESTIMATED NET EFFECT ON THE HIGHWAY FUND Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 HIGHWAY PATROL INSPECTION FUND Revenue – MHP – increase in the number of inspections ($0.50 per) Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 ESTIMATED NET EFFECT ON THE HIGHWAY PATROL INSPECTION FUND Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000 FISCAL IMPACT – Local GovernmentFY 2024 (10 Mo.) FY 2025FY 2026$0$0$0 L.R. No. 0846H.01I Bill No. HB 207 Page 5 of February 1, 2023 KB:LR:OD FISCAL IMPACT – Small Business Small businesses that provide inspections could be impacted as a result of this proposal. FISCAL DESCRIPTION This bill requires that used motor vehicles get an inspection at the seller's expense no more than 60 days prior to a sale. The inspection is not required for vehicles having less than 50,000 miles for the three-year period following the model year of manufacture. The seller must present the buyer with the certificate of inspection and approval, who must then submit the certificate of inspection when applying for a registration. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. SOURCES OF INFORMATION Department of Revenue Missouri Department of Transportation Missouri Highway Patrol Julie MorffRoss StropeDirectorAssistant DirectorFebruary 1, 2023February 1, 2023