Bill S.103 aims to update the Periodic Inspection Manual used by the Department of Motor Vehicles (DMV) in Vermont to clarify the criteria for vehicle inspections regarding rust, corrosion, or torn metal. The bill specifies that such issues, if cosmetic and not materially affecting the vehicle's structural integrity or posing a danger to safety, should not result in a vehicle failing its annual inspection. This legislative intent is explicitly stated in the bill, emphasizing the distinction between cosmetic damage and damage that compromises safety.

To implement this change, the Commissioner of Motor Vehicles is required to adopt amendments to the inspection manual by January 1, 2026, which will include clear guidelines and graphical examples to help inspection mechanics determine the significance of rust or corrosion. Additionally, an administrative bulletin will be issued to certified inspection mechanics detailing these amendments and providing necessary information for vehicle owners whose vehicles may fail inspection due to cosmetic issues. The act is set to take effect upon passage.