The proposed bill, HB 649-FN, introduces major changes to vehicle inspection requirements in the state by eliminating the mandate for physical safety inspections and on-board diagnostic tests for all private passenger vehicles. It also seeks to repeal the Motor Vehicle Air Pollution Abatement Fund, which previously supported initiatives aimed at reducing vehicle emissions. Key deletions from current law include the removal of inspection requirements for various vehicle types and the elimination of penalties for non-compliance with these inspections. Additionally, the bill modifies the language regarding the sale of unsafe used motor vehicles, allowing dealers to sell such vehicles with a notice of their unsafe status without needing to correct defects beforehand. The effective date for these changes is set for January 1, 2026.

The fiscal implications of this bill are significant, with estimated revenue decreases of $3,412,500 for the state in FY 2026 and FY 2027, alongside projected reductions in local revenue of $173,250 in FY 2027 and $346,500 in FY 2028. The repeal of the Motor Vehicle Air Pollution Abatement Fund will also lead to indeterminable expenditures in FY 2026, as the remaining balance and spending patterns prior to the repeal are unclear. Overall, the bill aims to streamline vehicle regulations by reducing inspection requirements and associated administrative processes, while also having a considerable impact on state and local revenues.

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