Update On Vehicle Inspection Repeal & Federal Lawsuit

In late 2025, Gordon-Darby filed a federal lawsuit against the State of New Hampshire challenging the legislature’s decision to repeal the annual inspection program. The suit alleges that ending the inspection program without first securing approval from the U.S. Environmental Protection Agency (EPA) violates the federal Clean Air Act, which governs how states must structure air pollution control programs, including vehicle emissions testing. It is important to highlight that the Gordon-Darby lawsuit is not about the state terminating their contract, it is about procedural violations by the state in effecting the repeal without the EPA and Clean Air Act approval.

As part of that lawsuit, Gordon-Darby has requested a temporary injunction, asking the federal court to pause the inspection repeal until the legal issues are addressed. If the injunction is granted, the current inspection program would continue in full while the case proceeds, meaning inspectors would continue operating as usual and inspection stickers would still be required beyond the repeal date. The hearing on this request is currently scheduled for January 22, 2026. Decisions on injunction motions often come quickly after argument, but there are no guarantees on timing. 

Absent an injunction, the inspection program is slated to end on January 31, 2026 under state law. After that date, annual inspections, including safety and emissions, would generally no longer be mandated for most passenger vehicles. 

What Happens If/After Repeal Occurs?

Under the repeal as adopted in the 2025 state budget, mandatory inspections for private passenger vehicles would end, but certain requirements remain:

• School buses and commercial motor vehicles over 10,000 pounds would still be subject to inspection requirements due to existing federal regulations.
• Vehicle owners are still legally responsible for ensuring their vehicles comply with existing safety and equipment standards in RSA Chapter 266 (e.g., lights, brakes, tires, emissions). Even without an annual sticker, law enforcement can cite unsafe equipment during traffic stops.

Additionally, the amended consumer protection provisions in recent legislation would allow a buyer to request an inspection from a dealer if they reasonably believe a vehicle is unsafe. This gives dealers a role in confirming that vehicles meet equipment requirements under RSA 266 prior to sale.

Pending Legislative Action – HB 649 and Related Proposals

While HB 649 has been the central vehicle inspection repeal bill, amendments, discussions, and related proposals remain active in the legislature. Currently:

• HB 649 is in the Senate Finance Committee (as of this writing).
• Proposed changes tied to this bill would require that temporary plate issuance include a basic determination that a vehicle meets the existing equipment standards contained in RSA 266 at the time of sale.
• They would also mandate clear disclosure to buyers regarding the inspection status of a vehicle at the time of sale — whether no examination has been performed, the examination found no issues, or the examination found specified deficiencies.
• Discussions include review of the RSA 266 definitions referring to safe vehicle requirements.

These industry-impacting legislative efforts continue to evolve, and NHADA is actively monitoring progress. Given that legislative sessions can move rapidly in Concord, we will keep members informed of any final decisions made that affect dealer operations and compliance obligations.

What This Means for Dealers and Repairers

• Uncertainty remains high as we approach late January. The outcome of the federal injunction could keep the inspection program in place beyond January 31, or the repeal could continue to take effect if the court denies the motion.
• Regardless of the inspection program’s status, buyers retain consumer protections tied to equipment standards.
• Pending disclosure requirements and the consumer-inspection language may create new documentation and compliance workflows at the point of sale.

What’s Next

We are monitoring several fronts:

1.  The federal injunction hearing (January 22, 2026) — a pivotal moment that could delay or halt the repeal.
2.  EPA review of the state’s request to end safety and emissions testing compliance — the Clean Air Act allows time for federal action, but the injunction could pause implementation of the repeal in the interim. 
3.  Legislative committee activity on HB 649 — which could modify definitions and dealer obligations in state law.

Given the compressed timeframe before January 31, changes could happen quickly.
NHADA remains committed to keeping our membership informed and prepared to adapt.