LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 344 HLS 24RS 199
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: March 26, 2024 2:22 PM Author: BAGLEY
Dept./Agy.: Public Safety, Office of Motor Vehicles
Subject: Eliminates State Inspection Stickers for Certain Vehicles Analyst: John McKay
MOTOR VEHICLES EG -$14,544,855 SG RV See Note Page 1 of 2
Removes the requirement for motor vehicle inspection stickers
Under the present law, every motor vehicle, trailer, semi-trailer and pole trailer registered in the state must have a safety
inspection sticker for an annual fee of $10, which $5.25 remitted to the Department of Public Safety & Corrections, Public
Safety Services ($4 to Office of State Police and $1.25 to the Office of Motor Vehicles). Proposed law eliminates the
requirement of a safety inspection sticker. Proposed law modifies present law by requiring only commercial vehicles and
student transportation vehicles to have a safety inspection sticker. Present law exempts overweight and oversize mobile
homes when being moved by a bonded carrier and used motor vehicles in transit by a dealer from obtaining a certificate of
inspection and approval. Proposed law retains present law requires vehicles registered in parishes or municipalities
governed by the US Clean Air Act/US EPA obtain an emissions inspection as required by present law. Proposed law
eliminates inspection stickers and safety statements for assembled vehicles. Proposed law eliminates law enforcement’s
ability to require drivers to submit to a vehicle inspection and test.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. ($14,544,855) ($14,544,855) ($14,544,855) ($14,544,855) ($14,544,855) ($72,724,275)
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total ($14,544,855) ($14,544,855) ($14,544,855) ($14,544,855) ($14,544,855) ($72,724,275)
EXPENDITURE EXPLANATION
Proposed law will decrease annual expenditures by approximately $155,000 for the Department of Public Safety (DPS),
Office of Motor Vehicles (OMV) associated with the cost to produce inspections stickers. DPS reports the average annual cost
of stickers from FY 21 to FY 23 was $188,773. Currently, OMW issues approximately 4.4 M stickers. Proposed law will reduce
the number of stickers issued by approximately 3.6 M or 82%.
While the proposed law does not directly impact other expenditures, $3.5 M of the revenues collected by OMV is utilized as
general operating expenses. Additionally, approximately $11 M of SGR revenues is transferred to the Office of State Police to
be utilized for general operations. A reduction of approximately $14.5 M in SGR revenues may require an offsetting
appropriation of SGF to maintain current activity levels or may require a significant SGR expenditure reduction within OMV or
State Police.
REVENUE EXPLANATION
Proposed law reduces annual SGR revenues in the Department of Public Safety (DPS), Office of Motor Vehicles (OMV) by
approximately $3.5 M and the Office of State Police (OSP) by approximately $11 M, resulting in a total reduction of $14.5 M.
Proposed law removes the inspection sticker requirement for all vehicles except for commercial motor vehicles and student
transportation vehicles, which will eliminate approximately 82% of the inspection stickers sold each year.
The annual inspection sticker fee is $10. For each $10 fee collected, State Police receives $4, OMV receives $1.25, and the
remaining $4.75 is retained by the local Motor Vehicle Inspection (MVI) station. OMV also collects an $8 handling fee per
book of inspection stickers sold. In FY 19, OMV collected $148,169 in handling fees. Based on actual inspection sticker sales
in FY 19 under present law, excluding commercial motor vehicles and student transportation vehicles, OMV anticipates a
total loss of state revenue of approximately $14.5 M ($14.4 M inspection stickers + $148,169 handling fees). The table
below illustrates projected annual revenue reductions of this measure by agency.
Continued on Page 2
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 344 HLS 24RS 199
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: March 26, 2024 2:22 PM Author: BAGLEY
Dept./Agy.: Public Safety, Office of Motor Vehicles
Subject: Eliminates State Inspection Stickers for Certain Vehicles Analyst: John McKay
CONTINUED EXPLANATION from page one: Page 2 of 2
Continued REVENUE EXPLANATION from Page 2
Projected Reduction Annual SGR Revenues
Insp. Stickers OMV State Police Total
1 year Inspection Stickers 1,135,284 ($709,553) ($2,270,568) ($2,980,121)
2 year Inspection Stickers 2,174,584 ($2,718,230) ($8,698,336) ($11,416,556)
# Sticker Books ($8/book)* 18,521 ($148,168) $0 ($148,168)
Total ($3,575,951) ($10,968,904) ($14,544,855)
*This represents FY 19 figures for sticker books to inspection sites. The LFO is working with OMV to get more recent data.
For informational purposes
Department of Environmental Quality
Proposed law does not eliminate vehicles in parishes governed by the US Clear Air Act from obtaining an annual emissions
control sticker and paying the accompanying $8 fee to Motor Vehicle Inspection (MVI) stations performing the test. Emission
control stickers are required in East Baton Rouge, West Baton Rouge, Ascension, Livingston, and Iberville parishes. For
reference, MVI stations retain $6 of the $8 emission test fee and the Department of Environmental Quality (DEQ) receives
the remaining $2. DEQ will still receive the $2 associated with emissions tests under the provisions of proposed law.
Annually, approximately 322,000 emission control stickers are sold resulting in $640,000 of revenue for DEQ.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB344 Original: 32:1304(A)(1), 32:1306(C), 32:1(A), 32:5(D)(3)
HB344 Engrossed: 32:1304(A)(1), 32:1306(C), 32:1(A), 32:5(D)(3)