COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2405H.01I Bill No.:HB 1069 Subject:Motor Vehicles; Roads and Highways; Department of Revenue Type:Original Date:February 3, 2025Bill Summary:This proposal repeals the motor vehicle safety inspection program.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Highway Fund (0644)
($2,224,200)
Less than
($1,819,200)
Less than
($1,819,200)
Highway Patrol
Inspection Fund
(0297)($900,000)($900,000)($900,000)
Missouri Air
Remission Reduction
Fund (1267)
Unknown to
(Unknown)
Unknown to
(Unknown)
Unknown to
(Unknown)
Total Estimated Net
Effect on Other State
Funds
More or Less than
($3,124,200)
More or Less than
($2,719,200)
More or Less than
($2,719,200)
Numbers within parentheses: () indicate costs or losses. L.R. No. 2405H.01I
Bill No. HB 1069
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February 3, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0 $0 $0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 2405H.01I
Bill No. HB 1069
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FISCAL ANALYSIS
ASSUMPTION
§§301.020, 301.032, 301.074, 301.132, 301.147, 301.190, 301.380, 301.443, 301.800, 307.350,
307.353, 307.355, 307.360, 307.370, 307.375, 307.380, 307.385, 307.390, 307.402, 643.303 &
643.315 – Motor Vehicle Inspection Program
Oversight was unable to receive some agency responses in a timely manner and performed
limited analysis. Oversight has presented this fiscal note on the best current information that we
have or on information regarding a similar bill(s). Upon the receipt of agency responses,
Oversight will review to determine if an updated fiscal note should be prepared and seek the
necessary approval to publish a new fiscal note.
In response to a similar proposal from 2025 (HB 334), officials from the Department of
Revenue (DOR) assumed the following regarding this proposal:
Motor Vehicle Bureau (MVB)
Safety Inspections
Proposed language seeks to remove the need for vehicle safety inspections in all cases apart from
school buses. This presents an impact to the Motor Vehicle Bureau through the updating of
systems, correspondence, and employee training,
Administrative Impact
To implement the proposed provisions of this bill the MVB would be required to:
• Update procedures, manuals, Department website, and correspondence letters.
• Update systems to remove safety inspection requirements for vehicle registration.
• Update systems to allow for variable year requirements for registration, including fee tables,
personal property tax lookup, and various other data fields.
• Send communications to stakeholders as applicable.
• May need additional FTE to handle possible increase in voluntary registration suspensions,
however it is unknown at this time. At the time of implementation, the department may pursue
additional FTE through the appropriation process.
• Additional equipment for any hired FTE.
FY 2026 – Systems Analysis & Support
Associate Research/Data Analyst 757 hrs. @ $26.03/hr. =$19,705
Research/Data Analyst 189 hrs. @ $27.87/hr. =$5,267
Administrative Manager 95 hrs. @ $30.25/hr. =$2,874 L.R. No. 2405H.01I
Bill No. HB 1069
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FY 2026 – Strategy & Communications Office
Associate Research/Data Analyst 140 hrs. @ $26.03/hr. =$3,644
Research/Data Analyst 40 hrs. @ $27.87/hr. =$1,115
Total = $32,605
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.
Revenue Impact
DOR notes, regarding the removal of safety inspections, the Motor Vehicle Bureau does not
estimate a change in received funds.
Updating Safety inspection requirements:
10 hours @ $225/hr. = $2,250
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:
Current statutes fund the administration of safety inspections through the charging of a fee of
$1.50 to purchase an inspection sticker/authority to apply to a vehicle which passed the
inspection.
The deposit of fees collected is broken up with $1.00 going to Highway Fund (0644) and $.50
going to Highway Patrol Inspection Fund (0297). The estimated number of safety inspections
annually is 1.8 million.
1.8 million x $1.00 = $1,800,000 - Highway Fund (0644)
1.8 million x $0.50 = $900,000 - Highway Patrol Inspection Fund (0297)
If this legislation is enacted, there would be a one-time cost of fully refunding safety inspection
stations for their inventory of safety inspection sticker/authorities. This is calculated by
estimating the statewide inventory of stickers/authorities and multiplying by the $1.50 that would
be reimbursed.
The statewide inventory in stations at a given time is estimated to be 15% of their annual supply. L.R. No. 2405H.01I
Bill No. HB 1069
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In Section 8.185, the Patrol currently has spending authority for $100,000 for the refund of
unused stickers. If enacted, the Patrol would need additional spending authority for these
refunds. The Patrol assumes this would be an expenditure for only one fiscal year.
1.8 million x .15 (15%) x $1.50 = Total $405,000 - Highway Fund (0644)
If this proposal is enacted, there would be an annual cost of providing forms to inspection
stations for the purposes of filling out an IDentification Number and ODometer Verification
(ID/OD). Currently, the cost of that form is absorbed by the state through funding generated
from the safety inspection sticker sales. The cost of that triplicate form is currently $0.12 and has
increased approximately 100% in the last four years. Currently, a safety inspection also serves as
an ID/OD, so the elimination of safety inspections will result in more ID/ODs to be supported.
An estimate has been requested from the Department of Revenue on how much of an increase
this would be but has not yet been provided. For this estimate, MHP will use 500,000 annually.
An electronic version of an ID/OD report is currently provided complimentary in locations using
a vendor sourced safety inspection application (electronic technology). The Highway Patrol
Inspection Fund (0297) would not be available if this proposal is enacted. To calculate the fiscal
impact of providing the form to inspection stations for the purpose of reporting ID/OD
inspections, the number of estimated annual ID/OD inspections is multiplied by $0.12.
160,000 estimated annual ID/OD inspections x $0.12 = Total $19,200 - Highway Fund (0644)
Upon further inquiry, Oversight notes MHP states there would be an unknown cost savings, to
the Highway Fund (0644) and Highway Patrol Inspection Fund (0297). That said, personnel
would remain at the same funding level as it is right now in terms of the number of FTE.
Statutorily, the Patrol will still have responsibility for oversight of the emissions testing program,
salvage vehicle inspections, school bus inspections, oversight of the ID/OD inspection program,
and the review and approval of motor vehicle dealer inspections. In terms of school bus
inspections, this legislation leaves in the language that school buses have to be inspected prior to
the start of school by an approved inspection station. Part of the appropriation will need to be
left in place for these types of inspections but it is unknown how many stations will continue to
do safety inspections for buses when no other inspections for vehicles will be required. Again,
there may be an unknown cost savings but that savings may not be realized until FY 2027 and
beyond.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by the MHP.
Officials from the Department of Natural Resources (DNR) assume the following regarding
his proposal:
The Gateway Vehicle Inspection Program (GVIP) is the state’s program for administering the
Clean Air Act mandated emission inspections for vehicles registered in the St. Louis area. L.R. No. 2405H.01I
Bill No. HB 1069
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Unless exempted, emission tests are required for motor vehicle registration renewals every two
years and also between most ownership transfers. The fee for the emissions test is $24, of which
$2.50 is paid to the State.
The proposed bill impacts the GVIP in two ways. At Section 643.315.2.(10), the bill removes
language pertaining to an exemption for vehicles less than four years old and have only had one
owner. The language the bill removes would no longer require the vehicle to have an odometer
reading of 40,000 miles or less at its first required biennial inspection to receive the exemption.
This will result in more vehicles that will receive this exemption and reduce the fee revenue for
the department. At this time, the number of additional exemptions that will be caused by the bill
due to this is unknown. Therefore, the loss of fee revenue is also unknown.
The second impact on GVIP from the proposed bill is that at Section 643.315.4.(3), the bill
would remove the sentence that exempts vehicle sales from obtaining an emission inspection if
the sale meets one of the exemptions in Section 307.380.2. RSMo. The exemptions in Section
307.380.2. RSMo include vehicles sold for junk, salvage, or for rebuilding, or vehicles sold at
public auction, or from dealer to dealer. By removing this sentence from the statute and the
corresponding exemption for these types of vehicle sales to obtain an emission inspection, it will
(likely unintentionally) increase the amount of emission inspections required. At this time, it is
unknown how many additional vehicle sales would no longer meet the exemption and thus
would need to obtain an emission inspection. Therefore, the increased fee revenue as a result of
the elimination of these exemptions is also unknown.
The bill seeks to eliminate the safety inspection requirement for most vehicles registered in the
state, but the bill does not eliminate the emission inspections required in the St. Louis area under
the Gateway Vehicle Inspection Program (GVIP). The state rule for the emission inspection
program (10 CSR 10-5.381) includes numerous references to the safety inspection and safety
inspectors. Additionally, the state’s rule to implement GVIP (10 CSR 10-5.381) includes
language regarding the 40,000 mile or less requirement for the exemption of vehicles less than
four years old. As such, the department would need to undertake a rulemaking to update this rule
language to remove mentions of the safety inspection and also the 40,000 mile qualifier for the
exemption of vehicles less than four years old. This would require time from existing team
members to develop and move the rulemaking through the administrative process. The team
member time needed to develop the rulemaking to remove or replace the references to the safety
inspection and the 40,000 mile qualifier language for the exemption is estimated at 350 hours for
an Environmental Program Specialist position. This would be a one-time cost to department of
approximately $11,386. The department anticipates being able to absorb these costs. However,
until the FY 2026 budget is final, the department cannot identify specific funding sources.
Absorbing these costs would divert resources from other priorities and core assignments of
department team members. L.R. No. 2405H.01I
Bill No. HB 1069
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Summary:
Costs for rulemaking:
350 hr. of Environmental Program Specialist salary
350 x $32.53 = $11,386 - The department anticipates being able to absorb these costs. However,
until the FY 2026 budget is final, the department cannot identify specific funding sources.
Oversight assumes DNR is provided with core funding to handle a certain amount of activity
each year. Oversight assumes DNR could absorb the rulemaking costs related to this proposal.
If multiple bills pass which require additional staffing and duties at substantial costs, DNR could
request funding through the appropriation process.
DNR notes:
Lost Fee Revenue from removal of 40,000 mileage qualifier for exemption:
Unknown - Missouri Air Emission Reduction Fund (1267)
Additional Fee Revenue from removing the exemption for certain vehicle sales:
Unknown - Missouri Air Emission Reduction Fund (1267)
Oversight does not have information to the contrary and therefore, Oversight will reflect a
positive Unknown increase in revenue to an Unknown loss of revenue to the Air Emission
Reduction Fund (1267). Oversight cannot determine if the increase and decrease of funds will
exceed $250,000 as there are too many unknown variables such as the number of vehicles that
will no longer qualify for an exemption.
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.
Officials from the Phelps County Sheriff, Kansas City Police Department and St. Louis
County Police Department each assume the proposal will have no fiscal impact on their
respective organizations.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other law enforcement agencies were requested to respond to this proposed legislation
but did not. A listing of political subdivisions included in the Missouri Legislative Information
System (MOLIS) database is available upon request. L.R. No. 2405H.01I
Bill No. HB 1069
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028MISSOURI AIR REMISSION
REDUCTION FUND (1267)
Revenue – DNR – increase in fees
collected from removing the exemption
on certain vehicle sales p. 7UnknownUnknownUnknown
Loss – DNR – decrease in fees
collected from the removal of the
40,000 mile qualifier for exemption p. 7(Unknown)(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
THE MISSOURI AIR REMISSION
REDUCTION FUND (1267)
Unknown to
(Unknown)
Unknown to
(Unknown)
Unknown to
(Unknown)
HIGHWAY FUND (0644)Savings – MHP – no longer
maintaining a motor vehicle inspection
program p. 5$0UnknownUnknown
Cost – MHP – one-time cost for
reimbursing inspection stations for
unused inspection stickers p. 5($405,000)$0$0
Cost – MHP – forms for ID/OD
inspections p. 5($19,200)($19,200)($19,200)
Loss – MHP – loss of funds collected
from the motor vehicle inspection
stickers p. 4($1,800,000)($1,800,000)($1,800,000)
ESTIMATED NET EFFECT ON
THE HIGHWAY FUND (0644) ($2,224,200)
Less than
($1,819,200)
Less than
($1,819,200) L.R. No. 2405H.01I
Bill No. HB 1069
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028HIGHWAY PATROL INSPECTION
FUND (0297)
Savings – MHP – no longer
maintaining a motor vehicle inspection
program p. 5$0UnknownUnknown
Loss – MHP – loss of funds collected
from the motor vehicle inspection
stickers p. 4($900,000)($900,000)($900,000)
ESTIMATED NET EFFECT ON
THE HIGHWAY PATROL
INSPECTION FUND (0297)($900,000)($900,000)($900,000)
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
Small businesses that provide motor vehicle inspections will be impacted as a result of this
proposal.
FISCAL DESCRIPTION
This bill repeals the inspection requirement for non-commercial motor vehicles which is
currently required in order to renew a motor vehicle license. The air quality and emission
inspection requirements for St. Louis and some specified areas, which are mandated by Federal
law, are not modified. Inspection stations can still perform school bus safety inspections,
odometer reading inspections, and services for transferring vehicle ownership.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 2405H.01I
Bill No. HB 1069
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February 3, 2025
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SOURCES OF INFORMATION
Department of Revenue
Missouri Department of Transportation
Missouri Highway Patrol
Department of Natural Resources
Phelps County Sheriff
Kansas City Police Department
St. Louis County Police Department
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 3, 2025February 3, 2025