COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3410H.02C Bill No.:HCS for HB 2317 Subject:Licenses - Motor Vehicle; Business and Commerce; Motor Vehicles; Department
of Revenue
Type:Original Date:April 24, 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 2027General Revenue($86,759)($79,593)($80,884)Total Estimated Net
Effect on General
Revenue($86,759)($79,593)($80,884)
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.02C
Bill No. HCS for HB 2317
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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 2027General Revenue1 FTE1 FTE1 FTETotal Estimated Net
Effect on FTE1 FTE1 FTE1 FTE
☐ 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.02C
Bill No. HCS for HB 2317
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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:
• Hire additional FTE due to an increase in consumer complaints;
• Update the Missouri titling manual;
• Make changes to procedures, correspondence letters, forms, and the Department website;
• Provide License Offices and stakeholders these changes as applicable; 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
Research/Data Analyst 10 Hrs @ $27.00 = $270
Administrative manager 5 Hrs @ $29.31 = $146
Total = $1,796
FY 2025 - Strategy and Communications Office
Associate Research/Data Analyst 10 Hrs @ $21.64= $216
Total = $216
FY 2025 – General Counsel’s Office
If the increase is more significant than anticipated or additional laws are passed that impact the
General Counsel’s Office (GCO), additional FTE or Attorneys may be requested through the
appropriations process. It is unclear how many individuals/dealers will appeal to the
Administrative Hearing Commission (AHC) for a violation for improper inspection that would
lead to a dealer suspension or revocation.
Oversight assumes DOR will use existing staff and will not hire additional FTE to conduct these
activities; therefore, Oversight will not reflect the administrative costs DOR has indicated on the
fiscal note.
DOR notes 1 FTE will be required (Project Specialist at $45,624 with related equipment
expenses). L.R. No. 3410H.02C
Bill No. HCS for HB 2317
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Fusion Impact
Development and testing $250/hour x 50hrs = $12,500
The implementation of this legislation will be coordinated with the integration of the
Department’s Motor Vehicle and Driver Licensing software system approved and passed by the
General Assembly in 2020 (Senate Bill 176). To avoid duplicative technology development and
associated costs to the state, it is recommended a delayed effective date be added to this bill to
correlate with the installation of the new system.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates for 1 FTE and the Fusion costs as provided by DOR.
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 36,000 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. L.R. No. 3410H.02C
Bill No. HCS for HB 2317
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUE FUNDCost – DOR – Fusion implementation
consultant
($12,500)$0$0
Costs - DOR Personnel Service($38,020)($46,536)($47,467) Fringe Benefits($27,252)($33,057)($33,417) Expense & Equipment($8,987)$0$0Total Costs - DOR($74,259)($79,593)($80,884)FTE Change1 FTE1 FTE1 FTEESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND($86,759)($79,593)($80,884)
Estimated Net FTE Change on the
General Revenue Fund1 FTE1 FTE1 FTE
HIGHWAY 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.02C
Bill No. HCS for HB 2317
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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 proposal requires used motor vehicles to be inspected prior to any sale.
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 24, 2024April 24, 2024