COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2064H.01I Bill No.:HB 799 Subject:Motor Vehicles; Department of RevenueType:Original Date:January 27, 2025Bill Summary:This proposal modifies motor vehicle inspection requirements.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue($70,873)$0$0Total Estimated Net
Effect on General
Revenue($70,873)$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Highway 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)
*Oversight is unable to determine an exact fiscal impact due to too many variables and
unknowns.
Numbers within parentheses: () indicate costs or losses. L.R. No. 2064H.01I
Bill No. HB 799
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January 27, 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. 2064H.01I
Bill No. HB 799
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FISCAL ANALYSIS
ASSUMPTION
§§301.020 & 307.350 – Motor Vehicle Inspections
Officials from the Department of Revenue (DOR) assumed the following regarding this
proposal:
Administrative Impact
To implement the proposed language the Department will be required to:
• Update procedures, manuals, public correspondence, and website materials
• Update department systems to incorporate changed registration requirements
• Train current employees
FY 2026 – Systems Analysis & Support
Associate Research/Data Analyst 254 hrs. @ $26.03/hr. =$6,612
Research/Data Analyst 64 hrs. @ $27.87/hr. =$1,784
Administrative Manager 32 hrs. @ $35.10/hr. =$1,123
FY 2026 – Strategy & Communications Office
Associate Research/Data Analyst 80 hrs. @ $26.03/hr. =$2,082
Research/Data Analyst 60 hrs. @ $27.87/hr. =$1,672
Total = $13,273
The Department anticipates that they will be able to absorb these costs and that there will be
minimal impact. If multiple bills are passed that require Department resources, FTE may be
requested through the appropriations process.
FUSION Impact
Implementation: 10 hrs. @$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. L.R. No. 2064H.01I
Bill No. HB 799
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January 27, 2025
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The fiscal impact estimated above is based on changes in the current Department's Motor
Vehicle system environment. The implementation of this legislation will be coordinated with the
integration of the Department's Motor Vehicle and Driver Licensing system approved and passed
by the General Assembly in 2020 (SB 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.
DOR notes OA-ITSD services will be required at a cost of $70,873 in FY 2025 (674.98 hours x
$105 per hour).
Oversight does not have any information to the contrary in regards to DOR’s assumptions;
therefore, Oversight will reflect DOR’s OA-ITSD costs on the fiscal note.
Officials from the Missouri Highway Patrol (MHP) assume the following regarding this
proposal:
For each safety inspection performed, one dollar is deposited into the Highway Fund (0644) and
fifty cents is deposited into the Highway Patrol Inspection Fund (0297), which would be reduced
with this proposed legislation.
This bill removes the requirement for vehicles over 10 years old to be safety inspected prior to
registration unless there is an odometer reading of 150,000 or more. Starting with model year
2012 vehicles, the vehicle will only require a safety inspection after reaching 150,000 miles.
Each year of registration renewals, starting August 28, 2025, a particular group of vehicles will
be exempted from the safety inspection process, which would have been required to be inspected
under current law. Each year will add a group of vehicles to that list of exempted vehicles. Every
two years, a new group will be added while simultaneously subtracting a percentage of vehicles
based on mileage accrued in that year. The projected fiscal impact will have many variables and
unknowns.
The methodology used for the calculations are as follows:
a. Sample data from the Department of Revenue was used to estimate the number of
registrations for a given model year (2011) vehicle. The data indicated that 120,000 was a
reasonable base number and this model year is the most comparable year for accurate
comparison.
b. Inspection data was utilized to determine that 60% of 2011 model year vehicles inspected in
2023 were under 150,000 miles. 72,000 will be the base number used for estimating newly
annual-exempted vehicles. L.R. No. 2064H.01I
Bill No. HB 799
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c. Each cycle of the biennial inspection would add a percentage of vehicles that were previously
exempted by mileage (under 150,000) but are now not exempted. This rate is estimated at
62% of the base number, which would be added each cycle.
d. Under current law, the safety inspection for registration is only applicable if the vehicle year
and the registration year are even/even or odd/odd.
e. The above-referenced projections were utilized to project “exemptions added” by the bill,
which would begin with significance on August 28, 2025, meaning just over 83% of FY
2026.
1. Base annual accrual: 120,000 x 0.60 = 72,000
2. FY 2026: 72,000 x 0.83 = (59,760) using 60,000
3. FY 2027: 120,000 x 0.60 = 72,000
4. FY 2028: (72,000 x 0.62) = 44,640 + 72,000 = 116,640
5. FY 2029: (FY 27 total (72,000) x 0.62) = 44,640 + 72,000 = 116,640
6. FY 2030: (base annual accrual x 0.20) (0.62 x 72,000) + 72,000 = 14,400 + 44,640 + 72,000 =
131,040
Oversight does not have information to the contrary; however, Oversight assumes there are too
many variables to accurately estimate a specific fiscal impact. Therefore, Oversight will reflect
an “Unknown, less than $250,000” loss to the Highway Fund and the Highway Patrol Inspection
Fund for each fiscal year.
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.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDCost – DOR – OA-ITSD services($70,873)$0$0ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND($70,873)$0$0 L.R. No. 2064H.01I
Bill No. HB 799
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FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028HIGHWAY FUND (0644)Loss – MHP – less inspections required(Unknown, less
than $250,000)
(Unknown, less
than $250,000)
(Unknown, less
than $250,000)
ESTIMATED 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 (0297)
Loss – MHP – less inspections required(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)
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, safety inspections are not required for registration of a motor vehicle having less than
150,000 miles for the 10-year period following the model year of manufacture.
This bill changes that exemption to motor vehicles having less than 150,000 miles and are model
year 2012 or newer.
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. 2064H.01I
Bill No. HB 799
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January 27, 2025
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SOURCES OF INFORMATION
Department of Revenue
Missouri Highway Patrol
Missouri Department of Transportation
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 27, 2025January 27, 2025