This bill, HB 649-FN, proposes significant changes to the vehicle inspection requirements in the state by eliminating the mandate for physical safety inspections and on-board diagnostic tests for private passenger vehicles, effective January 1, 2026. It also seeks to repeal the Motor Vehicle Air Pollution Abatement Fund, which previously provided funding for initiatives aimed at reducing vehicle emissions. The bill includes various amendments to existing laws, such as the deletion of current inspection requirements and the insertion of new provisions that allow dealers to sell vehicles deemed unsafe without correcting defects, as long as they inform customers of the vehicle's condition. Additionally, any violations of these new provisions will be classified as unfair or deceptive practices.

The fiscal impact of the bill is notable, with projected revenue decreases of approximately $3,412,500 for FY 2026 and FY 2027, primarily affecting the Highway Fund, General Fund, and the Motor Vehicle Air Pollution Abatement Fund. Local municipalities are also expected to experience a reduction in revenue due to decreased highway fund block grants, estimated at $173,250 in FY 2027 and $346,500 in FY 2028. The repeal of the Motor Vehicle Air Pollution Abatement Fund raises concerns regarding the remaining balance and future expenditures, as the fund had a reported balance of $691,596 as of June 30, 2024. Overall, the bill represents a shift away from stringent vehicle inspection requirements, which may raise concerns about road safety and environmental impacts.

Statutes affected:
Introduced: 125-S:2, 266:18-d, 266:59-a, 266:60, 266:13, 266:115, 358-F:2, 358-F:4
HB649 text: 125-S:2, 266:18-d, 266:59-a, 266:60, 266:13, 266:115, 358-F:2, 358-F:4