HB1649: relative to state inspection of new motor vehicles.

HB 1649-FN - AS INTRODUCED

2016 SESSION

16-2236

03/01

HOUSE BILL 1649-FN

AN ACT relative to state inspection of new motor vehicles.

SPONSORS: Rep. Spillane, Rock. 2; Rep. Tamburello, Rock. 5; Rep. Duarte, Rock. 2; Rep. C. McGuire, Merr. 29; Rep. Murphy, Hills. 7; Rep. Baldasaro, Rock. 5; Rep. Burt, Hills. 39; Rep. Rouillard, Hills. 6; Rep. Potucek, Rock. 6; Rep. Horn, Merr. 2; Sen. Reagan, Dist 17

COMMITTEE: Transportation

ANALYSIS

This bill provides that a new motor vehicle shall not be required to be reinspected during the 2 years following the manufacturer's model year.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16-2236

03/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Sixteen

AN ACT relative to state inspection of new motor vehicles.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Inspections; Expiration. Amend RSA 266:1, II to read as follows:

II. Any vehicle registered under this title, except an OHRV, snowmobile, moped, or other exempt vehicle, shall be inspected once a year, during the month in which the birth date of the owner is observed, if the owner is a natural person, provided that a new motor vehicle shall not be required to be reinspected during the 2 years following the manufacturer's model year. An inspection sticker shall be valid for the same duration as the vehicle's registration, which shall not exceed 16 months. If the month in which the anniversary of the owner's birth occurs will be one of the next 4 months, an inspection sticker may be issued, with an expiration date of the birth month in the following year, of the first person named on the title application. An inspection sticker for a new motor vehicle shall have an expiration date during the year that is 2 years after the manufacturer's model year. Nothing in this paragraph shall require any person who has registered and had inspected a vehicle with temporary plates to have the vehicle reinspected upon receipt of permanent motor vehicle plates. An inspection sticker shall not expire when a vehicle is transferred to a licensed dealer.

2 Effective Date. This act shall take effect January 1, 2017.

LBAO 16-2236

11/3/15

HB 1649-FN- FISCAL NOTE

AN ACT relative to state inspection of new motor vehicles.

FISCAL IMPACT:

The Department of Safety states this bill, as introduced, will decrease state restricted revenues by $105,505 in FY 2017 and $211,010 in FY 2018 and each year thereafter, increase state restricted expenditures by $29,002 in FY 2017, $7,466 in FY 2018, and $18,179 in FY 2019 and each year thereafter, decrease local revenues by $10,713 in FY 2018 and $21,426 in FY 2019 and each year thereafter, and increase local expenditures by an indeterminable amount in FY 2017. There will be no impact on county revenues or expenditures.

METHODOLOGY:

The Department of Safety states this bill provides that inspections for new motor vehicles shall not expire until the year after two years from the manufacturer’s model year. Based on the average of the last two model year vehicles, the Department estimates 64,926 inspections per year would qualify for the new vehicle two-year inspection this bill authorizes. Based on the current fee amount of $3.25, of which $0.25 goes to the state general fund, $0.25 goes to the motor vehicle air pollution abatement fund, and the remainder ultimately is credited to the state highway fund, the impact of this bill on revenues is as follows:

FY 2017

FY 2018

FY 2019

FY 2020

Estimated # of Inspections

64,926

64,926

64,926

64,926

Inspection Sticker Fee

$3.25

$3.25

$3.25

$3.25

Total Revenue

($211,010)

($211,010)

($211,010)

($211,010)

Effective Date (1/1/17) Adjustment

$105,505

$0

$0

$0

Net Revenue Decrease

($105,505)

($211,010)

($211,010)

($211,010)

General Fund

($8,116)

($16,232)

($16,232)

($16,232)

MV Air Pollution Abatement Fund

($8,116)

($16,232)

($16,232)

($16,232)

Highway Fund

($89,273)

($178,547)

($178,547)

($178,547)

Total Revenue Decrease

($105,505)

($211,010)

($211,010)

($211,010)

The Department also states there would be an increase in state expenditures related to this bill. In FY 2017, the Department estimates expenditures of $30,625 in system programming changes to reflect necessary changes from this bill. However, the Department also estimates a savings of $1,623 in FY 2017 and $3,246 in FY 2018 and each year thereafter relative to reduced production of inspection stickers, based on a per sticker cost of $0.05. Lastly, pursuant to RSA 235:23, 12 percent of total road toll revenue and motor vehicle fees are distributed to cities and towns pursuant to the specified formula in the following year. The impact of this bill on state expenditures and local revenues is as follows:

FY 2017

FY 2018

FY 2019

FY 2020

Programming Changes

$30,625

$0

$0

$0

Sticker Production Cost Savings

($1,623)

($3,246)

($3,246)

($3,246)

Highway Block Grant

$0

$10,713

$21,426

$21,426

Total State Expenditures

$29,002

$7,466

$18,179

$18,179