HB 154
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 154 (Chair, Environment and Transportation Committee)(By
Request - Departmental - State Police)
Environment and Transportation Judicial Proceedings
Motor Vehicles – Electronic Inspection Certificates for Used Vehicles
This departmental bill makes permanent the electronic inspection certificate program for
used vehicles. The bill takes effect June 1, 2020.
Fiscal Summary
State Effect: The bill does not materially affect State finances or operations; minimal cost
savings and operational efficiencies attributable to the electronic program continue.
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: The Department of State Police (DSP) has determined that this
bill has minimal or no impact on small business (attached). The Department of Legislative
Services concurs with this assessment. (The attached assessment does not reflect
amendments to the bill.)
Analysis
Current Law: The Automotive Safety Enforcement Division of DSP must prepare
inspection certificate forms and provide them without charge to inspection stations. When
a licensed dealer that is also an inspection station transfers most types of used vehicles, it
is required to prepare an inspection certificate or have one prepared by another inspection
station. If any other person transfers a used vehicle, generally the person must obtain an
inspection certificate from an inspection station. Before the Motor Vehicle Administration
titles and registers a used vehicle, it must require a valid inspection certificate for the
vehicle.
An “inspection certificate” is defined as a certification by an inspection station (in a format
established by DSP) that certifies that, as of its date, a specified vehicle meets or exceeds
equipment standards, and it identifies the inspection station and the registered individual
who personally inspected the vehicle.
The Automotive Safety Enforcement Division is authorized to establish standards by
regulation for the operation of inspection stations.
Background: Chapter 91 of 2014 required the Automotive Safety Enforcement Division
of DSP to establish the manner and format for the submission of an inspection certificate
for the transfer of a used vehicle and authorized, but did not require, electronic submission.
Chapter 91 also made several changes to the requirements and procedures governing the
issuance and display of used vehicle inspection certificates. Generally, Chapter 91 repealed
references to a physical certificate, such as requirements to sign and date a certificate and
to attach or affix a certificate to a vehicle window. Chapter 91 also removed the
requirement that certificates be issued without charge by an inspection station.
Chapter 670 of 2017 extended the termination date for the electronic inspection certificate
program for used vehicles by three years. Absent this bill, the changes made by Chapter 91
(and extended by Chapter 670) abrogate on June 30, 2020, and the system of issuing a
physical inspection certificate and attaching it to a vehicle window is reinstated.
DSP advises that 1,433 stations participate in the program, and more than 90% of all
inspection certifications are now performed electronically. Making the program permanent
eliminates the need for paper inspection forms, which stations were previously required to
keep for years, and reduces fraud and theft of certificates.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Department of State Police; Maryland Department of
Transportation; Department of Legislative Services
HB 154/ Page 2
Fiscal Note History: First Reader - February 4, 2020
rh/ljm Third Reader - March 14, 2020
Revised - Amendment(s) - March 14, 2020
Analysis by: Eric F. Pierce Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 154/ Page 3
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Motor Vehicles - Electronic Inspection Certificates for Used Vehicles -
Sunset Extension
BILL NUMBER: HB 154
PREPARED BY: Thomas Williams
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
This legislation extends the sunset date for a program that licensees can voluntarily participate
in. There are no mandates. If an inspection station opts into the program it has to pay $3 per
vehicle inspected to the private vendor maintaining the electronic system. MDSP and MVA do
not receive any of the fees collected by inspection stations.
HB 154/ Page 4


Statutes affected:
Text - First - Motor Vehicles - Electronic Inspection Certificates for Used Vehicles - Sunset Extension: 23-101 Transportation, 23-108.1 Transportation
Text - Third - Motor Vehicles – Electronic Inspection Certificates for Used Vehicles: 23-101 Transportation, 23-108.1 Transportation, 2-017 Transportation