COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:3410H.01I Bill No.:HB 2317 Subject:Licenses - Motor Vehicle; Business and Commerce Type:Original Date:April 1, 2024Bill Summary:This proposal requires used motor vehicles to be inspected prior to any sale. 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 2027Highway 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. 3410H.01I Bill No. HB 2317 Page 2 of April 1, 2024 KB:LR:OD 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. 3410H.01I Bill No. HB 2317 Page 3 of April 1, 2024 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, forms and the Department website; • Update the Missouri Titling Manual; • Send Communications to License offices and other Contracted stakeholders; and • Train Staff FY 2025 - Motor Vehicle Bureau Associate Research/Data Analyst 40 Hrs @ $25.22 = $1,009 Lead Admin Assistant 20 Hrs @ $18.54 = $371 Administrative manager 5 Hrs @ $29.31= $146 Research/Data Analyst 10 Hrs @ $27.00 = $270 FY 2026 - Strategy and Communications Office Associate Research/Data Analyst 10 Hrs @ $21.64 = $216 Total Cost =$2,012 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. L.R. No. 3410H.01I Bill No. HB 2317 Page 4 of April 1, 2024 KB:LR:OD 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. Oversight notes, this proposal requires a motor vehicle safety inspection be provided to the purchaser, unless the vehicle has less than 40,000 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 assume the proposal will have no fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for MoDOT. FISCAL IMPACT – State GovernmentFY 2025 (10 Mo.) FY 2026FY 2027HIGHWAY FUNDRevenue – MHP – increase in the number of inspections ($1 per) Unknown, Less than $250,000 Unknown, Less than $250,000 Unknown, Less than $250,000ESTIMATED 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 L.R. No. 3410H.01I Bill No. HB 2317 Page 5 of April 1, 2024 KB:LR:OD FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$0$0$0 FISCAL IMPACT – Small Business Small businesses that provide motor vehicle inspections or sell used motor vehicles could be impacted by this proposal. FISCAL DESCRIPTION This bill requires that sellers of used motor vehicles have the vehicle inspected no more than 60 days prior to the date of sale, and the seller must provide the purchaser with a certificate of inspection and approval at the point of sale. The purchaser must submit this certificate when registering the vehicle. The inspection requirement will not apply for the sale of motor vehicles having less than 40,000 miles for the three-year period following the model year of manufacture of the vehicle. The bill also provides that emission inspections will not be required for vehicles that are exempted from the safety inspection. 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 Highway Patrol Missouri Department of Transportation Julie MorffRoss StropeDirectorAssistant DirectorApril 1, 2024April 1, 2024