BILL NUMBER: AB 383 CHAPTERED 10/06/05 CHAPTER 565 FILED WITH SECRETARY OF STATE OCTOBER 6, 2005 APPROVED BY GOVERNOR OCTOBER 6, 2005 PASSED THE ASSEMBLY SEPTEMBER 7, 2005 PASSED THE SENATE SEPTEMBER 6, 2005 AMENDED IN SENATE AUGUST 30, 2005 AMENDED IN SENATE AUGUST 16, 2005 AMENDED IN SENATE JUNE 28, 2005 AMENDED IN ASSEMBLY MARCH 17, 2005 INTRODUCED BY Assembly Member Montanez FEBRUARY 11, 2005 An act to amend Section 44062.1 of the Health and Safety Code, relating to air pollution. LEGISLATIVE COUNSEL'S DIGEST AB 383, Montanez Air pollution: motor vehicle inspection program: repair assistance. Existing law establishes a motor vehicle inspection and maintenance program (smog check), administered by the Department of Consumer Affairs and the State Air Resources Board, that provides for the inspection of all motor vehicles, except those specifically exempted from the program, upon registration, biennially upon renewal of registration, upon transfer of ownership, and in certain other circumstances. Existing law provides for a repair assistance program available to (1) an individual whose maximum income level is 185% of the federal poverty level and whose vehicle has failed a smog check inspection or who was issued a notice to correct for an alleged violation of unlawful motor vehicle exhaust discharge, if the vehicle subject to that notice has failed a smog check inspection subsequent to receiving that notice, or both, and (2) an owner of a motor vehicle that has failed a smog check inspection and that is directed to a test-only facility. This bill would make the repair assistance program available to an individual who meets the criteria in (1) above whose maximum income level is 200% of the federal poverty level, and to an individual who meets the criteria in (2) above. The bill would require the department to give priority to applications submitted pursuant to the criteria in (2) above, as specified. The bill would, on January 1, 2009, set the maximum income level relative to the criteria in (1) above at 185% of the federal poverty level. The bill would authorize the department to increase the maximum income level of low-income motor vehicle owners to a maximum of 225% of the federal poverty level if the department determines that existing budget allocations would support the increase. This bill would also make a conforming change in the definition of "low-income motor vehicle owner" regarding the owner's income level as a percentage of the federal poverty level. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 44062.1 of the Health and Safety Code is amended to read: 44062.1. (a) The department shall offer a repair assistance program through entities authorized to perform referee functions. (b) (1) The repair assistance program shall be available to the following eligible individuals: (A) An individual who has a maximum income level of 200 percent of the federal poverty level, as published quarterly in the Federal Register by the Department of Health and Human Services, and who is either or both of the following: (i) The owner of a motor vehicle that has failed a smog check inspection. (ii) The owner of a motor vehicle who was issued a notice to correct for an alleged violation of Section 27153 or 27153.5 of the Vehicle Code involving that vehicle, if the vehicle subject to that notice has failed a smog check inspection subsequent to receiving the notice. On and after January 1, 2009, the maximum income level prescribed for this subparagraph shall be set at 185 percent of the federal poverty level, as published quarterly in the Federal Register by the United States Department of Health and Human Services. (B) An individual who is the owner of a motor vehicle that has failed a smog check inspection and is directed to a test-only facility pursuant to Section 44010.5 or 44014.7. If the department determines that applications for repair assistance exceed the amount of funds available, to the maximum extent possible, applications from low-income motor vehicle owners shall be given priority over other applications. (2) The department shall offer repair cost assistance, funded by the High Polluter Repair or Removal Account in the Vehicle Inspection and Repair Fund created pursuant to subdivision (a) of Section 44091, to individuals based on the cost-effectiveness and air quality benefit of the needed repair. Repair assistance may include retesting costs and the costs of repairs to remedy the violation of Section 27153 or 27153.5 of the Vehicle Code. (3) An applicant for repair assistance shall file an application on a form prescribed by the department and shall certify under penalty of perjury that the applicant meets the applicable eligibility standards. (4) Verification of income eligibility shall be based on at least one form of documentation, as determined by the department, including, but not limited to, (A) an income tax return, (B) an employment warrant, or (C) a form of public assistance verification. (c) The repair assistance program shall be funded by the High Polluter Repair or Removal Account. (d) Repairs to motor vehicles that fail smog check inspections and are subsidized by the state through the program shall be performed at a repair station licensed and certified pursuant to Sections 44014 and 44014.2. Repair shall be based upon a preapproved list of repairs for cost-effective emission reductions or repairs to remedy a violation of Section 27153 or 27153.5 of the Vehicle Code. (e) The qualified low-income motor vehicle owner receiving repair assistance pursuant to this section shall contribute a copayment, as determined by the department as specified in Section 44017.1, either in cash, or in emissions-related partial repairs as verified by a test-only station pursuant to paragraph (2) of subdivision (c) of Section 44015, or a combination thereof. For an owner of a motor vehicle described in subparagraph (B) of paragraph (1) of subdivision (b), the department shall impose a copayment at least equivalent to the amount imposed on a low-income individual receiving assistance under this section. If the repair cost exceeds the applicable repair cost limit, the department shall inform a motor vehicle owner of all options for compliance at the time of testing and repair. (f) The department may increase its contribution toward the repair of a motor vehicle under this program in excess of the amount authorized for the repair of a high-polluter pursuant to paragraph (1) of subdivision (b) of Section 44094, if the department determines that the expenditure is cost-effective. (g) Notwithstanding subparagraph (A) of subdivision (b), the department may increase the maximum income level of a low-income motor vehicle owner under this program from the amount specified in this section, not to exceed 225 percent of the federal poverty level, if the department determines that the increase is capable of being supported within existing budget allocations. (h) The department shall collect data from the program to provide information on how to improve the program. Data collection shall include all of the following: (1) The number of motor vehicle owners that are eligible for repair assistance. (2) The number of eligible motor vehicle owners that use repair assistance funds. (3) The potential for fraud. (4) The average repair bills. (5) The types of repairs being done. (6) The amount of partial repairs done prior to receipt of repair assistance. (7) The emissions benefits of providing repair assistance. (i) The department shall collect data and develop information and shall report to the Legislature on or before April 1, 1999, on eligibility criteria, program participation, the cost of vehicle repairs, and the funding resources needed to implement the program. (j) For purposes of this section, "low-income motor vehicle owner" means a person whose income does not exceed 200 percent of the federal poverty level.