SB 681
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 681 (Senator Ready)
Judicial Proceedings Rules and Executive Nominations
Motor Vehicles - Inspection Certificates - Exception
This bill exempts the transfer of a used vehicle from a business entity to the majority owner
of the business entity from the requirement to obtain a motor vehicle safety inspection
certificate, but only if two conditions are met. To qualify for the exemption, the vehicle
must be primarily driven by the majority owner, and the business entity must have been
dissolved or be in the process of dissolution.
Fiscal Summary
State Effect: The bill is not anticipated to materially affect State finances and operations.
Local Effect: None.
Small Business Effect: Minimal.
Analysis
Current Law: Generally, if a person transfers a used motor vehicle, the person has to
obtain an inspection certificate from an inspection station. The inspection requirement does
not apply to transfers between spouses, parents and children, vehicle co-owners, or vehicles
that are not to be both titled and registered in Maryland. The inspection requirement also
does not apply to other specialized types of transfers, as specified in statute.
A valid inspection certificate for a used vehicle is required for titling and registration.
However, Class L (Historic) vehicles are exempt from this requirement. An inspection
certificate is valid from the date of the inspection certificate for a period of 90 days. An
inspection certificate issued for a used vehicle owned and held in inventory by a licensed
dealer expires at the earlier of six months or after 1,000 miles have been added to the
vehicle’s odometer since issuance of the inspection certificate.
If a person applies for titling and registration of a used vehicle, the Motor Vehicle
Administration may issue a temporary registration and withhold delivery of the certificate
of title until an inspection certificate is received. A vehicle with a temporary registration
must be inspected within 60 days of the issuance of the temporary registration.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 1315 (Delegate Fraser-Hidalgo) - Environment and
Transportation.
Information Source(s): Maryland Department of Transportation; Department of
Legislative Services
Fiscal Note History: First Reader - February 19, 2021
rh/ljm Third Reader - March 29, 2021
Revised - Amendment(s) - March 29, 2021
Analysis by: Eric F. Pierce Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 681/ Page 2


Statutes affected:
Text - First - Motor Vehicles - Inspection Certificates - Exception: 23-106 Transportation, 23-107 Transportation
Text - Third - Motor Vehicles - Inspection Certificates - Exception: 23-106 Transportation, 23-107 Transportation