COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0443H.01I Bill No.:HB 169 Subject:Roads and Highways; Agriculture; Transportation; Motor Vehicles Type:Original Date:January 3, 2025Bill Summary:This proposal modifies provisions relating to cotton trailers. 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 2028Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 0443H.01I Bill No. HB 169 Page 2 of January 3, 2025 KB:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Federal Highway Funds* $0 or Up to ($453,256) $0 or Up to ($1,087,814) $0 or Up to ($2,719,534) Total Estimated Net Effect on All Federal Funds $0 or Up to ($453,256) $0 or Up to ($1,087,814) $0 or Up to ($2,719,534) *Potential loss of federal highway funds if Missouri is found to be out of compliance with federal rules 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. 0443H.01I Bill No. HB 169 Page 3 of January 3, 2025 KB:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from the Missouri Department of Transportation (MoDOT) assume the exception proposed in §307.010 could create a variance with Federal Motor Carrier Safety Regulation 393.100(b): Prevention against loss of load. Each commercial motor vehicle must, when transporting cargo on public roads, be loaded and equipped, and the cargo secured, in accordance with this subpart to prevent the cargo from leaking, spilling, blowing or falling from the motor vehicle. If a variance with federal law is found, Federal Motor Carrier Safety Administration (FMCSA) Program funding (MCSAP) could be withheld. Missouri's FY 2025 MCSAP award is anticipated to be around $10,878,136. The penalty imposed upon states found to be in non-compliance can be as harsh as withholding all MCSAP funding, or potential withholding amounts are as follows: YEAR 0 (during the FY that FMCSA notifies Missouri of its noncompliance): up to 5% YEAR 1 (next full fiscal year): up to 10% YEAR 2 (2nd full fiscal year): up to 25% YEAR 3+ (ongoing until variance resolved): not more than 50% Oversight estimates the following impact: Year 0 (notification of noncompliance – partial year 10 months): $453,256 Year 1 (next full fiscal year): $1,087,814 Year 2 (second full fiscal year): $2,719,534 Year 3+ (ongoing until variance resolved): $5,439,068 Oversight does not have information to the contrary and therefore, Oversight will reflect the potential loss of federal funding. Oversight will reflect the fiscal impact as $0 (Missouri is not found to be out of compliance) up to the amounts listed above (Missouri is found to be out of compliance of federal rules). Officials from the Missouri Highway Patrol and Department of Revenue 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. L.R. No. 0443H.01I Bill No. HB 169 Page 4 of January 3, 2025 KB:LR:OD FISCAL IMPACT – State GovernmentFY 2026 (10 Mo.) FY 2027FY 2028FEDERAL HIGHWAY FUNDSLoss – MoDOT – potentially being out of compliance with federal rules $0 or Up to ($453,256) $0 or Up to ($1,087,814) $0 or Up to ($2,719,534) ESTIMATED NET EFFECT ON FEDERAL HIGHWAY FUNDS $0 or Up to ($453,256) $0 or Up to ($1,087,814) $0 or Up to ($2,719,534) FISCAL IMPACT – Local GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0 FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION Currently, the maximum speed at which cotton trailers may travel is 40 miles per hour. This bill increases the maximum speed to 65 miles per hour and removes the requirement that the trailer is to be used exclusively for transporting cotton. The bill also specifies that cotton trailers are not in violation of the provisions relating to securing of loads if certain conditions are met and no portion of the load becomes dislodged. 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. 0443H.01I Bill No. HB 169 Page 5 of January 3, 2025 KB:LR:OD SOURCES OF INFORMATION Missouri Department of Transportation Department of Revenue Missouri Highway Patrol Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 3, 2025January 3, 2025