COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:0443H.02P Bill No.:Perfected HCS for HB 169 Subject:Roads and Highways; Agriculture; Transportation; Motor Vehicles Type:Original Date:March 27, 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.02P Bill No. Perfected HCS for HB 169 Page 2 of March 27, 2025 KB:LR:OD 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. 0443H.02P Bill No. Perfected HCS for HB 169 Page 3 of March 27, 2025 KB:LR:OD FISCAL ANALYSIS ASSUMPTION In response to a previous version, officials from the Missouri Department of Transportation (MoDOT) assumed 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 notes House Amendment 1 appears to create provisions which would require all loads to be secured according to federal regulations; therefore, Oversight will not reflect a fiscal impact. 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.02P Bill No. Perfected HCS for HB 169 Page 4 of March 27, 2025 KB:LR:OD FISCAL IMPACT – State GovernmentFY 2026 (10 Mo.) FY 2027FY 2028$0$0$0FISCAL 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 70 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. SOURCES OF INFORMATION Missouri Department of Transportation Department of Revenue Missouri Highway Patrol Julie MorffJessica HarrisDirectorAssistant DirectorMarch 27, 2025March 27, 2025