BILL NUMBER: AB 2303 CHAPTERED 07/09/02 CHAPTER 127 FILED WITH SECRETARY OF STATE JULY 9, 2002 APPROVED BY GOVERNOR JULY 9, 2002 PASSED THE SENATE JUNE 20, 2002 PASSED THE ASSEMBLY MAY 6, 2002 INTRODUCED BY Assembly Member Runner FEBRUARY 21, 2002 An act to amend Sections 4000.1 and 5751.5 of the Vehicle Code, relating to registration of vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 2303, Runner. Vehicle registration: smog certificate validity. (1) Existing law generally governs the registration of motor vehicles, and provides that, among other requirements, that except as otherwise provided, the Department of Motor Vehicles shall require upon initial registration, and upon transfer of ownership and registration, of any motor vehicle, as specified, and upon registration of a motor vehicle previously registered outside this state which is subject to those provisions, a valid certificate of compliance or a certificate of noncompliance, as appropriate, in regard to smog certification. (2) Existing law also provides exceptions to these provisions, including when a valid certificate was issued in connection with the most recent renewal of registration of the vehicle, and the transfer occurred not more than 60 days following the date by which that renewal of registration was required. This bill would delete the exception described in paragraph (2) above, and instead, would provide an exception where the initial application for transfer is submitted within the 90-day validity period of a smog certificate, as specified. The bill would make related changes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 4000.1 of the Vehicle Code is amended to read: 4000.1. (a) Except as otherwise provided in subdivision (b), (c), or (d) of this section, or subdivision (b) of Section 43654 of the Health and Safety Code, the department shall require upon initial registration, and upon transfer of ownership and registration, of any motor vehicle subject to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, and upon registration of a motor vehicle previously registered outside this state which is subject to those provisions of the Health and Safety Code, a valid certificate of compliance or a certificate of noncompliance, as appropriate, issued in accordance with Section 44015 of the Health and Safety Code. (b) With respect to new vehicles certified pursuant to Chapter 2 (commencing with Section 43100) of Part 5 of Division 26 of the Health and Safety Code, the department shall accept a statement completed pursuant to subdivision (b) of Section 24007 in lieu of the certificate of compliance. (c) For purposes of determining the validity of a certificate of compliance or noncompliance submitted in compliance with the requirements of this section, the definitions of new and used motor vehicle contained in Chapter 2 (commencing with Section 39010) of Part 1 of Division 26 of the Health and Safety Code shall control. (d) Subdivision (a) does not apply to a transfer of ownership and registration under any of the following circumstances: (1) The initial application for transfer is submitted within the 90-day validity period of a smog certificate as specified in Section 44015 of the Health and Safety Code. (2) The transferor is either the parent, grandparent, sibling, child, grandchild, or spouse of the transferee. (3) A vehicle registered to a sole proprietorship is transferred to the proprietor as owner. (4) The transfer is between companies whose principal business is leasing vehicles, if there is no change in the lessee or operator of the vehicle or between the lessor and the person who has been, for at least one year, the lessee's operator of the vehicle. (5) The transfer is between the lessor and lessee of the vehicle, if there is no change in the lessee or operator of the vehicle. (6) Prior to January 1, 2003, the motor vehicle was manufactured prior to the 1974 model-year. (7) Beginning January 1, 2003, the motor vehicle is 30 or more model-years old. (e) The State Air Resources Board, under Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, may exempt designated classifications of motor vehicles from subdivision (a) as it deems necessary, and shall notify the department of that action. (f) Subdivision (a) does not apply to a motor vehicle when an additional individual is added as a registered owner of the vehicle. SEC. 2. Section 5751.5 of the Vehicle Code is amended to read: 5751.5. (a) Upon transfer of the title or interest of the registered owner of a motor vehicle that is subject to Part 5 (commencing with Section 43000) of Division 26 of the Health and Safety Code, if no certificate of compliance or certificate of noncompliance is submitted to the department pursuant to the exemptions described in paragraph (1) of subdivision (d) of Section 4000.1, the transferor of that vehicle shall sign and deliver to the transferee, upon completion of the transaction, the original copy of a statement, under penalty of perjury, that he or she has not modified the emissions system of the vehicle and does not have any personal knowledge of anyone else modifying the system in a manner that causes the emission system to fail to qualify for the issuance of a certificate of compliance pursuant to Section 44015 of the Health and Safety Code. The transferor shall keep a duplicate copy of the statement delivered to the transferee pursuant to this section. The department shall prescribe and make available to transferors the necessary forms to comply with this subdivision. (b) Any form prescribed by the department pursuant to subdivision (a) shall contain the following statement and a space for the signatures of the transferor and transferee at the end of the statement: "WARNING TO THE BUYER "A certificate of compliance was submitted to the Department of Motor Vehicles in conjunction with an application for the renewal of registration of this vehicle within the past 90 days. However, at present, you may be purchasing a vehicle that may not be in compliance with specified emission standards. "By signing this statement, you acknowledge that the seller is not required to provide you with an additional certificate of compliance prior to the completion of this transaction. "You may have this vehicle tested at a licensed smog check station prior to completion of this transaction to verify compliance. If the vehicle passes the test, you shall be responsible for the costs of the test. If the vehicle fails the test, the seller is obligated to reimburse you the cost of having the vehicle tested and, without expense to you, must have the vehicle repaired to comply with specified emission standards prior to completion of this transaction. _______________________________ _______________________ (Transferor) (Date) _______________________________ _______________________ (Transferee) (Date)" (c) Any sale of a motor vehicle with regard to which the transferor is found to have committed perjury, as described in subdivision (a), may be rescinded by the transferee within 60 days of the date that the transferee obtained knowledge of the perjury. The transferee shall be entitled to recover all consideration paid to the transferor and any interest from the date of sale. In addition, the court may, upon motion, award reasonable attorney's fees to the prevailing plaintiff.