BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1740
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          Date of Hearing:   March 22, 2010

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                AB 1740 (Jeffries) - As Introduced:  February 8, 2010
           
          SUBJECT  :  Specially constructed vehicles

           SUMMARY  :  Removes the 500 annual cap on the number of specially  
          constructed vehicles that may be registered.  Specifically,  this  
          bill  :  

          1)Allows an unlimited number of specially constructed vehicles  
            to be registered by the Department of Motor Vehicles (DMV)  
            using a specific formula for determining the emission control  
            standards that apply to those vehicles.  

          2)Allows the registered owner of a specially constructed vehicle  
            that is currently registered or incorrectly registered to  
            change the vehicle's registration by having it inspected by a  
            repair station authorized to perform referee functions for the  
            purpose of determining the engine model-year used in the  
            vehicle or the vehicle model-year, and the appropriate  
            emission control system application.  

          3)Repeals provisions that currently apply to specially  
            constructed vehicles presented to DMV after the existing 500  
            annual registration limitation for such vehicles has been met.  
             

           EXISTING LAW  :

          1)Defines a specially constructed vehicle as a vehicle that is  
            built for private use, not for resale, and is not constructed  
            by a licensed manufacturer or remanufacturer, and requires all  
            such vehicles to be subject to the emission control system  
            testing and certification requirements established by the  
            Department of Consumer Affairs.  

          2)Requires a passenger vehicle or pickup truck that is a  
            specially constructed vehicle to be inspected by stations  
            authorized to perform referee functions for the purposes of  
            determining the engine model-year used in the vehicle or the  
            vehicle model-year, and the emission control system  
            application.  








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          3)Grants the vehicle owner the option to choose whether the  
            inspection is based on the engine model-year used in the  
            vehicle or the vehicle model-year.  

          4)Requires the referee, in determining the engine model-year, to  
            compare the engine to engines of the era that the engine most  
            closely resembles and to assign the 1960 model-year to the  
            engine in any specially constructed vehicle that does not  
            sufficiently resemble a previously manufactured engine.  

          5)Requires the referee, in determining the vehicle model-year,  
            to compare the vehicle to vehicles of the era that the vehicle  
            most closely resembles and to assign the 1960 model-year to  
            any specially constructed vehicle that does not sufficiently  
            resemble a previously manufactured vehicle.  


          6)Allows DMV to provide an initial registration to no more than  
            the first 500 vehicles that meet the specified criteria and  
            are presented to the department each year for registration.  

          7)Requires DMV, when considering a registration application for  
            a specially constructed vehicle that is not among the first  
            500 applicants, to assign that vehicle the same model-year as  
            the calendar year in which the application is submitted, for  
            purposes of determining emissions inspection requirements for  
            the vehicle.  

          8)Requires DMV to develop and administer a vehicle registration  
            amnesty program, from January 1, 2010, until December 31,  
            2010, for vehicles that have been previously registered or  
            classified incorrectly and that are subsequently registered  
            correctly.  

          9)Prohibits bringing a criminal action for making false  
            statements relating to a vehicle's value, make, model, or for  
            failure to register the vehicle, against a current owner who  
            has been granted amnesty under the amnesty program.  

          10)  Requires the owners of specially constructed vehicles who  
            apply for amnesty under this program to obtain an emissions  
            control certificate.  

           FISCAL EFFECT  :  Unknown








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           COMMENTS  :  A specially constructed vehicle, or "kit car," is one  
          which is not built for resale nor constructed by a licensed  
          manufacturer.  Instead, they are typically built at home by  
          hobbyists and classic car enthusiasts.  Kit cars are often  
          replicas of well-known and expensive classics and are designed  
          so that anyone with a fair degree of technical skill can build  
          them to a standard where they can be driven on the public roads.  
           

          The Legislature in 2001 enacted SB 100 (Johannessen) Chapter  
          871, Statutes of 2001, which modified the way a kit car's engine  
          model-year is determined for smog inspection purposes.  Prior to  
          SB 100, because of the difficulty of determining the precise  
          engine model-year resulting from the use of unassociated engine  
          parts and the special nature of these vehicles, DMV designated  
          them as being from the current model-year.  A current-year  
          designation subjects vehicles to relatively stringent smog  
          standards, which many kit cars are unable to meet.  SB 100  
          authorized specially trained smog inspection station referees to  
          assign a 1960 model-year designation (i.e., completely exempt  
          from emission control requirements and from biennial smog  
          inspections) for vehicles not closely resembling any particular  
          model year but limited these designations to the initial  
          registration of no more than 500 vehicles each year.  SB 1578  
          (Johannessen) Chapter 95, Statutes of 2002, expanded the scope  
          of SB 100 so that it applied to the first 500 specially  
          constructed vehicles presented to DMV each year, regardless of  
          whether they were applying for initial registration or for  
          renewal.  Kit cars that are registered after the 500-vehicle  
          annual limitation has already been met in any given year must  
          meet new car smog standards for that particular year and will  
          also be subject to biennial smog inspections.  

          DMV reports that the 500-registration limit for kit cars was not  
          reached in 2009 until some time in December.  This year,  
          however, about 340 kit car registrations were processed through  
          early March.  Bloggers in the hot rodding community have noted  
          that, "Now with brand new Mustang and Camaro steel tubs  
          available (and possibly more makes in the works), the  
          competition for those few pardons is getting stiffer with no end  
          in sight."  

          Proponents of this bill argue that this annual limit of 500 for  
          kit car registrations under SB 100 provisions is unfair and is  








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          an impediment to economic activity.  They contend that "the  
          sport of hot rodding has created and maintained hundreds of  
          thousands of jobs" in California, and that "our cars are better  
          running and cleaner than most new vehicles."  They also point  
          out that, "These vehicles are primarily show vehicles and are  
          only driven a few times a month going to and from car shows and  
          parades."  They therefore believe that the limited usage of kit  
          cars translates into a minimal impact on statewide vehicular  
          emission totals.  

          Data from the Air Resources Board (ARB), on the other hand,  
          indicates that kit cars that lack emission controls are  
          substantially dirtier than vehicles containing the controls  
          required on a manufactured vehicle.  A typical kit car in good  
          condition emits 13.15 grams per mile of hydrocarbons (HC) and  
          oxides of nitrogen (NOx) as compared with a 2005 passenger  
          vehicle that emits 0.07 grams per mile of HC and NOx.  This is  
          nearly 200 times more pollution per mile.  Consequently, a small  
          number of uncontrolled kit cars can generate a substantial  
          amount of excess emissions even if driven less than typical  
          passenger vehicles.  

          The California Pollution Control Officers Association (CAPCOA)  
          further contends that the bill would "allow kit car owners who  
          have fraudulently tampered with their emissions controls and  
          cheated the state out of sales tax and registration fees to not  
          repay what they owe, and legally operate their polluting  
          vehicles."  In 2008 and 2009, the Legislature passed and the  
          Governor signed AB 619 and AB 318, both authored by  
          Assemblymember Bill Emmerson.  These create an amnesty program  
          for kit car owners that illegally registered their vehicles to  
          avoid emissions requirements and registration fees and sales  
          taxes.  This amnesty program requires these owners to clean  
          their vehicles and pay all fees owed, and in exchange grants  
          amnesty from prosecution.  AB 1740 eliminates all environmental  
          and financial requirements of this amnesty program, depriving  
          California of significant funds.  According to the Department of  
          Justice, which has led the investigation of kit car fraud, over  
          70,000 vehicles could take advantage of the loophole this new  
          bill would offer, depriving the state of over $35 million  
          annually in fees owed."

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 








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          Association of California Car Clubs (ACCC)
          L. A. Roadsters
          Over the Hill Gang, San Bernardino
          Over the Hill Gang, San Diego
          The Market Connection
          Saddleback So. Rods Cal.
          South Bay Cruisers
          Approximately 986 letters from individuals
          Approximately 96 phone calls from individuals

           Opposition 
           
          American Lung Association, in California
          California Air Pollution Control Officers Association  

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093