COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2955H.01I Bill No.:HB 1406 Subject:Business and Commerce; Merchandising Practices; Crimes and Punishment Type:Original Date:January 7, 2024Bill Summary:This proposal changes the law regarding catalytic converters.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 2955H.01I
Bill No. HB 1406
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total 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 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 2955H.01I
Bill No. HB 1406
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January 7, 2024
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FISCAL ANALYSIS
ASSUMPTION
§407.300 – Catalytic Converters
Officials from the Attorney General’s Office, the Department of Natural Resources, the
Department of Revenue, the Missouri Highway Patrol, the Missouri Department of
AgricultureMissouri Department of Transportation, the Missouri Office of
Prosecution Services, Kansas City, Springfield, the Phelps County Sheriff’s Department,
the Kansas City Police Department and the St. Louis County Police Department 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.
In response to similar legislation from 2023, Perfected HB 37, officials from the City of
O’Fallon, the Branson Police Department, the St. Joseph Police Department and the Tipton
Police Department each assumed 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.
Oversight notes in an article from the Bismark Tribune from February 22, 2021 regarding North
Dakota’s SB 2242, “Catalytic converters -- devices mandatory on gasoline-burning vehicles
since the mid-1970s -- are a hot item, and not just because vehicle exhaust passes through them.
Inside each device is a sort of honeycomb lined with metals such as palladium, rhodium and
platinum, which remove pollutants from the exhaust.
Palladium is worth about $2,400 an ounce, said Larry Schneider, owner of Bismarck Gold and
Silver Exchange. That equates to about $85 per gram. Platinum is valued at about $1,300 per
ounce ($46 per gram). Rhodium is worth about $20,000 per ounce ($706 per gram)”
Oversight only reflects the responses that we have received from state agencies and political
subdivisions; however, other cities, counties and local law enforcement agencies were requested
to respond to this proposed legislation but did not. A general listing of political subdivisions
included in our database is available upon request.
FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0 L.R. No. 2955H.01I
Bill No. HB 1406
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January 7, 2024
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FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0
FISCAL IMPACT – Small Business
Small businesses that purchase catalytic converters would need to require vehicle identification
numbers on catalytic converters that are purchased.
FISCAL DESCRIPTION
The proposed legislation appears to have no direct fiscal impact.
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
Attorney General’s Office
Department of Natural Resources
Department of Revenue
Missouri Highway Patrol
Missouri Department of Agriculture
Missouri Department of Transportation
Missouri Office of Prosecution Services
Kansas City
City of Springfield
Phelps County Sheriff Department
Kansas City Police Department
St. Louis County Police Department
O’Fallon
Branson Police Department
St. Joseph Police Department
Tipton Police Department
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 7, 2024January 7, 2024