BILL NUMBER: AB 2289	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 25, 2010
	PASSED THE ASSEMBLY  AUGUST 26, 2010
	AMENDED IN SENATE  AUGUST 20, 2010
	AMENDED IN SENATE  AUGUST 2, 2010
	AMENDED IN SENATE  JULY 15, 2010
	AMENDED IN SENATE  JUNE 23, 2010
	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 21, 2010

INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 18, 2010

   An act to amend Sections 44010.5, 44012, 44014, 44014.2, 44014.5,
44015, 44024.5, 44036, 44052, 44055, and 44056 of, to add Sections
44001.1 and 44014.6 to, to repeal Sections 44050.5, 44051.5, 44053,
and 44054 of, and to repeal and add Sections 44050 and 44051 of, the
Health and Safety Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2289, Eng. Smog check program: testing: penalties.
   (1) Existing law establishes a motor vehicle inspection and
maintenance (smog check) program, developed, implemented, and
administered by the Department of Consumer Affairs. The smog check
program provides for the inspection of a motor vehicle, among other
circumstances, upon its initial registration, upon transfer of
ownership, and for vehicles registered in certain areas of the state,
biennially upon renewal of registration. Existing law requires the
smog tests to include, at minimum, loaded mode dynamometer testing in
enhanced areas, and 2-speed testing in all other program areas, and
a visual or functional check of emission control devices specified by
the department.
   This bill would require the department to implement testing using
onboard diagnostic systems, in lieu of loaded mode dynamometer or
2-speed idle testing, only on model year 2000 and newer vehicles,
beginning no earlier than January 1, 2013, and otherwise authorize
the department, in consultation with the State Air Resources Board,
to determine the appropriate test procedures, as specified.
   The bill would authorize the department to adopt, by regulation, a
process by which vehicles that present prohibitive or unusual
inspection circumstances are inspected by referees, as provided. A
referee would be authorized to charge a fee sufficient to cover the
costs of providing certain referee services.
   The bill would require the department to issue inspection-based
performance standards that stations would be required to meet to be
eligible to issue certificates of compliance or noncompliance for
certain vehicles.
   The bill would make other changes to the department's authority
with respect to the smog check program, including requirements
relating to testing equipment and motor vehicle emission data.
   (2) Existing law authorizes the Department of Consumer Affairs to
issue a citation to a smog check station or technician that may
specify certain civil penalties.
   This bill would repeal this provision and related provisions
specifying the circumstances in which such a citation may be issued
and certain minimum and maximum amounts for civil penalties. It
would, instead, authorize the department to issue a citation to a
licensee, contractor, or fleet owner for a violation of smog check
requirements. The citation could contain an order of abatement or the
assessment of an administrative fine between $100 and $5,000, or
both, meeting specified requirements. The bill would make other
changes to smog check penalty provisions, including authorizing civil
penalties up to $5,000 for a violation of smog check requirements.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 44001.1 is added to the Health and Safety Code,
to read:
   44001.1.  (a) The Legislature finds and declares that additional
reductions of motor vehicle emissions could be achieved by effective
repairs to motor vehicle emission control components.
   (b) It is the intent of the Legislature that the department work
with the California Community Colleges and other training
institutions to identify funding mechanisms that encourage the
development of innovative training programs for motor vehicle
technicians that focus on reducing air pollution from vehicles
needing repair and to increase the number and skill level of motor
vehicle technicians.
  SEC. 2.  Section 44010.5 of the Health and Safety Code is amended
to read:
   44010.5.  (a) The department shall implement a program with the
capacity to commence, by January 1, 1995, the testing at test-only
facilities, in accordance with this chapter, of 15 percent of that
portion of the total state vehicle fleet consisting of vehicles
subject to inspection each year in the biennial program and that are
registered in the enhanced program area, as established pursuant to
paragraph (1) of subdivision (a) of Section 44003.
   (b) (1) The department shall increase the capacity of the program
so that the capacity exists to commence, by January 1, 1996, the
testing at test-only facilities of that portion of the state vehicle
fleet that is subject to inspection and is registered in the enhanced
program area, which is sufficient to meet the emission reduction
performance standards established by the United States Environmental
Protection Agency in regulations adopted pursuant to the Clean Air
Act Amendments of 1990, taking into account the results of the pilot
demonstration program established pursuant to Section 44081.6.
   (2) Upon increasing the capacity of the program pursuant to
paragraph (1), the department shall afford smog check stations that
are licensed and certified pursuant to Sections 44014 and 44014.2 the
initial opportunity to perform the required inspections. The
department shall adopt, by regulation, the requirements to provide
that initial opportunity.
   (3) If the department determines that there is an insufficient
number of licensed test-only smog check stations operating in an
enhanced area to meet the increased demand for test-only inspections,
the department may increase the capacity of the program by utilizing
existing contracts.
   (c) The program shall utilize the testing procedures described in
Section 44012. Vehicles selected for testing pursuant to this section
shall include vehicles equipped without second generation onboard
diagnostic systems (OBD II) and vehicles with emission problems that
may not be adequately detected by the vehicle's OBD II, as determined
by the department in consultation with the state board. The
department, in consultation with the state board, may also select for
testing pursuant to this section any other vehicles necessary in
order to meet the requirement described in paragraph (1) of
subdivision (b).
   (d) Vehicles that are not diesel-powered in the enhanced program
area which are not subjected to the program established by this
section may be tested at smog check stations licensed pursuant to
Section 44014 that use loaded mode dynamometers. Diesel-powered
vehicles in the enhanced program area that are not subjected to the
program established by this section may be tested at smog check
stations licensed pursuant to Section 44014 using appropriate testing
procedures as determined by the department.
   (e) (1) The department may implement the program established
pursuant to subdivision (a) through a network of privately operated
test-only facilities established pursuant to contracts to be awarded
pursuant to this section.
   (2) The initial contracts awarded pursuant to this section shall
terminate not later than seven years from the date that the contracts
were executed.
   (f) No person shall be a contractor of the department for
test-only facilities in all air basins, exclusively, where the
enhanced program is in effect unless the department determines, after
a public hearing, that there is not more than one qualified
contractor. The South Coast Air Basin shall have at least two
contractors, and the combined enhanced program area that includes
Bakersfield, Fresno, and Sacramento shall have at least two
contractors. The department may operate test-only facilities on an
interim basis while contractors are being sought.
   (g) (1) In awarding contracts under this section, the department
shall request bids through the issuance of a request for proposal.
   (2) The department shall first determine which bidders are
qualified, and then award the contract to the qualified bidder,
giving priority to the test cost and convenience to motorists.
   (3) The department shall provide a contractual preference, as
determined by the department, not to exceed 10 percent of the total
proposal evaluation score, based on the following factors:
   (A) Up to 5 percent to bidders providing firm commitments to
employ businesses that are licensed or otherwise substantially
participating in the smog check program after January 1, 1994.
   (B) Up to 5 percent to bidders based on the extent to which
bidders maximize the potential economic benefit of the smog check
program on this state over the term of the contract. That potential
economic benefit shall include the percentage of work performed by
California-based firms, the potential of the total project workforce
who will be California residents, and the percentage of subcontracts
that will be awarded to California-based firms.
   (4) Any contract executed by the department for the operation of a
test-only facility shall expressly require compliance with this
chapter and any regulations adopted by the department pursuant to
this chapter.
   (h) The department shall ensure that there is a sufficient number
of test-only facilities, and that they are properly located, to
ensure reasonable accessibility and convenience to all persons within
an enhanced program area, and that the waiting time for consumers is
minimized. The department may operate test-only facilities on an
interim basis to ensure convenience to consumers. The department
shall specify in the request for proposal the minimum number of
test-only facilities that are required for the program. Any contracts
initially awarded pursuant to this section shall ensure that the
contractors are capable of fulfilling the requirements of subdivision
(a).
   (i) Any data generated at a test-only facility shall be the
property of the state, and shall be fully accessible to the
department at any time. The department may set contract
specifications for the storage of that data in a central data storage
system or facility designated by the department.
   (j) The department shall ensure an effective transition to the new
program by implementing an effective public education program and
may specify in the request for proposal a dollar amount that bidders
are required to include in their bids for public education
activities, to be implemented pursuant to Section 44070.5.
   (k) The department shall ensure the effective management of the
test-only facilities and shall specify in the request for proposal
that a manager be present during all hours of station operation.
   (  l  ) The department shall ensure and facilitate the
effective transition of employees of businesses that are licensed or
otherwise substantially participating in the smog check program and
may specify in the request for proposal that test-only facility
management be Automotive Service Excellence (ASE) certified, or be
certified by a comparable program as determined by the department.
   (m) As part of the contracts to be awarded pursuant to subdivision
(e), the department may require contractors to perform functions
previously undertaken by referee stations throughout the state, as
determined by the department, at some or all of the affected stations
in enhanced areas, and at additional stations outside enhanced areas
only to the extent necessary to provide appropriate access to
referee functions.
   (n) Notwithstanding any other provision of law, to avoid delays to
the program implementation timeline required by this chapter or the
Clean Air Act, the Department of General Services, at the request of
the department, may exempt contracts awarded pursuant to this section
from existing laws, rules, resolutions, or procedures that are
otherwise applicable, including, but not limited to, restrictions on
awarding contracts for more than three years. The department shall
identify any exemptions requested and granted pursuant to this
subdivision and report thereon to the Legislature.
   (o) The department shall implement the program established in this
section only in urbanized areas classified by the United States
Environmental Protection Agency as a serious, severe, or extreme
nonattainment area for ozone or a moderate or serious nonattainment
area for carbon monoxide with a design value greater than 12.7 ppm,
and shall not implement the program in any other area.
  SEC. 3.  Section 44012 of the Health and Safety Code, as added by
Section 5 of Chapter 739 of the Statutes of 2007, is amended to read:

   44012.  The test at the smog check stations shall be performed in
accordance with procedures prescribed by the department and may
require loaded mode dynamometer testing in enhanced areas, two-speed
idle testing, testing utilizing a vehicle's onboard diagnostic
system, or other appropriate test procedures as determined by the
department in consultation with the state board. The department shall
implement testing using onboard diagnostic systems, in lieu of
loaded mode dynamometer or two-speed idle testing, on model year 2000
and newer vehicles only, beginning no earlier than January 1, 2013.
However, the department, in consultation with the state board, may
prescribe alternative test procedures that include loaded mode
dynamometer or two-speed idle testing for vehicles with onboard
diagnostic systems that the department and the state board determine
exhibit operational problems. The department shall ensure, as
appropriate to the test method, the following:
   (a) Emission control systems required by state and federal law are
reducing excess emissions in accordance with the standards adopted
pursuant to subdivisions (a) and (c) of Section 44013.
   (b) Motor vehicles are preconditioned to ensure representative and
stabilized operation of the vehicle's emission control system.
   (c) For other than diesel-powered vehicles, the vehicle's exhaust
emissions of hydrocarbons, carbon monoxide, carbon dioxide, and
oxides of nitrogen in an idle mode or loaded mode are tested in
accordance with procedures prescribed by the department. In
determining how loaded mode and evaporative emissions testing shall
be conducted, the department shall ensure that the emission reduction
targets for the enhanced program are met.
   (d) For other than diesel-powered vehicles, the vehicle's fuel
evaporative system and crankcase ventilation system are tested to
reduce any nonexhaust sources of volatile organic compound emissions,
in accordance with procedures prescribed by the department.
   (e) For diesel-powered vehicles, a visual inspection is made of
emission control devices and the vehicle's exhaust emissions are
tested in accordance with procedures prescribed by the department,
that may include, but are not limited to, onboard diagnostic testing.
The test may include testing of emissions of any or all of the
pollutants specified in subdivision (c) and, upon the adoption of
applicable standards, measurement of emissions of smoke or
particulates, or both.
   (f) A visual or functional check is made of emission control
devices specified by the department, including the catalytic
converter in those instances in which the department determines it to
be necessary to meet the findings of Section 44001. The visual or
functional check shall be performed in accordance with procedures
prescribed by the department.
   (g) A determination as to whether the motor vehicle complies with
the emission standards for that vehicle's class and model-year as
prescribed by the department.
   (h) An analysis of pass and fail rates of vehicles subject to an
onboard diagnostic test and a tailpipe test to assess whether any
vehicles passing their onboard diagnostic test have, or would have,
failed a tailpipe test, and whether any vehicles failing their
onboard diagnostic test have or would have passed a tailpipe test.
   (i) The test procedures may authorize smog check stations to
refuse the testing of a vehicle that would be unsafe to test, or that
cannot physically be inspected, as specified by the department by
regulation. The refusal to test a vehicle for those reasons shall not
excuse or exempt the vehicle from compliance with all applicable
requirements of this chapter.
  SEC. 4.  Section 44014 of the Health and Safety Code is amended to
read:
   44014.  (a)  Except as otherwise provided in this chapter, the
testing and repair portion of the program shall be conducted by smog
check stations licensed by the department, and by smog check
technicians who have qualified pursuant to this chapter.
   (b) A smog check station may be licensed by the department as a
smog check test-only station and, when so licensed, need not comply
with the requirement for onsite availability of current service and
adjustment procedures specified in paragraph (3) of subdivision (b)
of Section 44030. A smog check technician employed by a smog check
test-only station shall be qualified in accordance with this section.

   (c) (1) The department shall supply a network of referees. A
referee shall have no ownership interest in, or business or economic
interest with, a smog check station. Referees may issue repair cost
waivers, certificates of compliance or noncompliance, and hardship
extensions, in accordance with regulations adopted by the department,
and promote automotive training through community colleges and other
training institutions certified by the department pursuant to
Section 44030.5. Referees shall provide inspection services for
specially constructed vehicles pursuant to Section 44017.4 and
Section 9565 of the Vehicle Code and issue exhaust system
certificates of compliance in accordance with Section 27150.2 of the
Vehicle Code.
   (2) The department may adopt regulations to establish
qualification standards and any special administrative, operational,
and licensure standards that the department determines to be
necessary for the provision of referee services.
   (3) The department may adopt, by regulation, a process by which
vehicles that present prohibitive or unusual inspection circumstances
are inspected by referees, including, but not limited to, the
inspection of vehicles in which the manufacturer's physical or
operational design presents inspection incompatibilities, vehicles
equipped with emission control configurations that do not match
United States Environmental Protection Agency or state board
certified configurations, including direct import vehicles and
vehicles with engine changes, and vehicles equipped with retrofit
alternative fuel conversion kits.
   (4) (A) A referee may charge a fee sufficient to cover the costs
of providing referee services for inspections of specially
constructed vehicles pursuant to Section 44017.4 and Section 9565 of
the Vehicle Code, inspections pursuant to Section 27150.2 of the
Vehicle Code, and other appropriate categories of referee services as
determined by the department. Requirements applicable to the fee,
including its amount, shall be established by the department by
regulation and the amount may be adjusted to reflect changes in the
Consumer Price Index, as published by the United States Bureau of
Labor Statistics. The fee may be collected by either a contracted
referee or by the department, if the department is providing the
referee service.
   (B) If the fee is imposed and collected by a contracted referee,
the contracted referee shall deposit the fees collected from the
vehicle owner into a separate trust account that the referee shall
account for and manage in accordance with generally accepted
accounting practices.
   (C) If the fee is imposed and collected by the department, the
fees shall be deposited into the Vehicle Inspection and Repair Fund.
   (d) A smog check station may also be licensed as a repair-only
station, and if so licensed, may perform repairs to reduce excessive
emissions on vehicles which have failed the smog check test. Repair
procedures and equipment requirements shall be established by the
department. Technicians employed by a smog check repair-only station
shall be qualified in accordance with this section.
   (e) Smog check technicians are qualified to test and repair only
those classes and categories of vehicles for which they have passed a
qualification test administered by the department. The department
shall provide for smog check technicians to be qualified for
different categories of motor vehicle inspection based on vehicle
classification and model-year.
   (f) The consumer protection-oriented quality assurance portion of
the program, including the provision of referee services, may be
conducted by one or more private entities pursuant to contracts with
the department.
  SEC. 5.  Section 44014.2 of the Health and Safety Code is amended
to read:
   44014.2.  (a) The department shall develop a program for the
voluntary certification of licensed smog check stations, or the
department may accept a smog check station certification program
proposed by accredited industry representatives. The certification
program, which may be called a "gold shield" program, shall be for
the purpose of providing consumers, whose vehicles fail an emissions
test at a test-only facility, an option of services at a single
location to prevent the necessity for additional trips back to the
test-only facility for vehicle certification. The department shall
establish inspection-based performance standards consistent with
Section 44014.6 for stations certified under this program that the
stations would be required to meet to be eligible to issue
certificates of compliance or noncompliance for vehicles selected
pursuant to Sections 44010.5 and 44014.7, or vehicles identified by
the department as gross polluters.
   (b) The department shall adopt regulations that apply to all
enhanced areas of the state, including those areas subject to the
enhanced program pursuant to Section 44003.5, that permit both of the
following:
   (1) Any vehicle that fails a required smog test at a test-only
facility may be repaired, retested, and certified at a facility
licensed pursuant to Section 44014, and certified pursuant to
subdivision (a).
   (2) Any vehicle that is identified as a gross polluter may be
repaired, retested, and certified at a facility licensed pursuant to
Section 44014, and certified pursuant to subdivision (a).
   (c) Smog check stations that seek voluntary certification under
this section shall enter into an agreement with the department to
provide repair services pursuant to Section 44062.1.
   (d) An agreement made pursuant to this section shall not be deemed
to be a contract subject to the requirements of Part 2 (commencing
with Section 10100) of Division 2 of the Public Contract Code.
  SEC. 6.  Section 44014.5 of the Health and Safety Code is amended
to read:
   44014.5.  (a) The enhanced program shall provide for the testing
and retesting of vehicles in accordance with Sections 44010.5 and
44014.2 and this section.
   (b) The repair of vehicles at test-only facilities is prohibited,
except that the minor repair of components damaged by station
personnel during inspection at the station, any minor repair that is
necessary for the safe operation of a vehicle while at a station, or
other minor repairs, such as the reconnection of hoses or vacuum
lines, may be undertaken at no charge to the vehicle owner or
operator if authorized in advance in writing by the department.
   (c) The department shall make available to consumers of test-only
facilities a list, compiled by region, of smog check stations
licensed to make repairs of vehicular emission control systems. A
test-only facility shall not refer a vehicle owner to any particular
provider of vehicle repair services in which the test-only facility
has a financial interest.
   (d) (1) The department shall establish standards for training,
equipment, performance, or data collection for test-only facilities.
   (2) (A) The department shall establish inspection-based
performance standards consistent with Section 44014.6 that test-only
stations would be required to meet to be eligible to issue
certificates of compliance or noncompliance for vehicles selected
pursuant to Section 44010.5 or 44014.7, or vehicles identified by the
department as gross polluters. Failure at any time to meet these
standards shall result in suspension of the certification to test
these vehicles granted by the department. A test-only station not
meeting the performance standards may continue to issue certificates
of compliance and noncompliance for other vehicles. The department
shall adopt measures to ensure the requirements of this subparagraph
are met, including through the use of the computer database and
computer network authorized by Section 44037.1.
   (B) The department shall provide the test-only station with
written or electronic notice, prior to the suspension pursuant to
subparagraph (A). The notice shall specify the grounds for the
suspension and provide that the station within five days of receipt
of the notice may request a hearing before the chief of the bureau or
his or her designee to contest the suspension. The request for
hearing shall be in writing or shall be made electronically. Receipt
of this hearing request shall stay the suspension pending the outcome
of the hearing. If a request for hearing is not made, the chief of
the bureau shall issue a final written decision of suspension within
10 days of the last date that a hearing could have been requested.
   (C) The hearing conducted by the chief of the bureau or his or her
designee shall be held not later than 10 days from the date that the
request for a hearing is received by the chief of the bureau. The
hearing requirements of Section 44072 shall not apply. The chief of
the bureau shall render a written decision within 10 days of the
hearing. The decision may rescind the suspension, affirm the
suspension, or order any other appropriate action. Administrative
review, before an administrative law judge, of the decision of the
chief of the bureau may be sought within 30 days of the date of the
decision.
   (D) The department may adopt regulations to implement this
paragraph.
   (e) The department shall prohibit test-only facilities from
engaging in other business activities that represent a conflict of
interest, as determined by the department. Upon implementation of the
performance standards described in paragraph (2) of subdivision (d),
ownership of a test-and-repair station by an owner of a test-only
facility shall not be considered a conflict of interest.
   (f) The test-only facility may charge a fee, established by the
department, sufficient to cover the facility's cost to perform the
tests or services, including, but not limited to, referee services
and the issuance of waivers and hardship extensions required by this
chapter. In addition, the station shall charge and collect the
certificate fee established pursuant to Section 44060. This
subdivision shall apply only to facilities contracted for pursuant to
subdivision (e) of Section 44010.5.
   (g) The department shall ensure that there is a sufficient number
of test-only facilities to provide convenient testing for the
following vehicles:
   (1) All vehicles identified and confirmed as gross polluters
pursuant to Section 44081 and Section 27156 of the Vehicle Code.
   (2) (A) Vehicles initially identified as gross polluters by a smog
check station licensed as a test-and-repair station may be issued a
certificate of compliance by a test-only facility or by a licensed
smog check station certified pursuant to Section 44014.2.
   (B) For purposes of this section, the department shall implement a
program that allows vehicles initially identified as gross polluters
to be repaired and issued a certificate of compliance by a facility
licensed and certified pursuant to Section 44014.2.
   (3) All vehicles designated by the department pursuant to Sections
44014.7 and 44020.
   (4) Vehicles issued an economic hardship extension in the previous
biennial inspection of the vehicle.
   (h) The department shall provide a sufficient number of test-only
facilities authorized to perform referee functions to provide
convenient testing for those vehicles that are required to report to,
and receive a certificate of compliance from, a test-only facility
by this chapter, including all of the following:
   (1) All vehicles seeking to utilize state-operated financial
assistance or inclusion in authorized scrap programs.
   (2) All vehicles unable to obtain a certificate of compliance from
a licensed smog check station pursuant to subdivision (c) of Section
44015.
   (3) Any other vehicles that may be designated by the department.
   (i) Gross polluters shall be referred to a test-only facility, or
a test-and-repair station that is both licensed and certified
pursuant to Sections 44014 and 44014.2, for a postrepair inspection
and retest pursuant to subdivision (g). Passing the emissions test is
not a sufficient condition for receiving a certificate of
compliance. A certificate of compliance shall only be issued to a
vehicle that does not have any defects with its emission control
system or any defects that could lead to damage of its emission
control system, as provided in regulations adopted by the department.

  SEC. 7.  Section 44014.6 is added to the Health and Safety Code, to
read:
   44014.6.  (a) The inspection-based performance standards created
for the certification program established pursuant to subdivision (a)
of Section 44014.2 and subdivision (d) of Section 44014.5 shall be
based on the same criteria.
   (b) The performance standards described in subdivision (a) shall
be applied to smog check technicians licensed pursuant to this
chapter, if the department determines that is feasible.
   (c) Beginning no later than January 1, 2012, the department shall
provide to all licensed smog check stations and technicians, if
technicians are included pursuant to subdivision (b), a preliminary
report on the station's and the technician's performance applying the
performance standards. The preliminary report shall include the
                                        criteria that is the basis of
the performance standards and an assessment of the station's and the
technician's potential eligibility to issue certificates of
compliance or noncompliance for vehicles selected pursuant to
Sections 44010.5 and 44014.7, or vehicles identified by the
department as gross polluters.
  SEC. 8.  Section 44015 of the Health and Safety Code is amended to
read:
   44015.  (a) A licensed smog check station shall not issue a
certificate of compliance, except as authorized by this chapter, to
any vehicle that meets the following criteria:
   (1) A vehicle that has been tampered with.
   (2) A vehicle identified pursuant to subparagraph (K) of paragraph
(3) of subdivision (b) of Section 44036. A vehicle identified
pursuant to subparagraph (K) of paragraph (3) of subdivision (b) of
Section 44036 shall be directed to the department to determine
whether an inadvertent error can explain the irregularity, or whether
the vehicle otherwise meets smog check requirements, allowing the
certificate for compliance to be issued, or the vehicle shall be
reinspected by a referee or another smog check station.
   (3) A vehicle that, prior to repairs, has been initially
identified by the smog check station as a gross polluter.
Certification of a gross polluting vehicle shall be conducted by a
designated test-only facility, or a test-and-repair station that is
both licensed and certified pursuant to Sections 44014 and 44014.2.
   (4) A vehicle described in subdivision (c).
   (b) If a vehicle meets the requirements of Section 44012, a smog
check station licensed to issue certificates shall issue a
certificate of compliance or a certificate of noncompliance.
   (c) (1) A repair cost waiver shall be issued, upon request of the
vehicle owner, by an entity authorized to perform referee functions
for a vehicle that has been properly tested but does not meet the
applicable emission standards when it is determined that no
adjustment or repair can be made that will reduce emissions from the
inspected motor vehicle without exceeding the applicable repair cost
limit established under Section 44017 and that every defect specified
by paragraph (2) of subdivision (a) of Section 43204, and by
paragraphs (2) and (3) of subdivision (a) of Section 43205, has been
corrected. A repair cost waiver issued pursuant to this paragraph
shall be accepted in lieu of a certificate of compliance for the
purposes of compliance with Section 4000.3 of the Vehicle Code. No
repair cost waiver shall exceed two years' duration. No repair cost
waiver shall be issued until the vehicle owner has expended an amount
equal to the applicable repair cost limit specified in Section
44017.
   (2) An economic hardship extension shall be issued, upon request
of a qualified low-income motor vehicle owner, by an entity
authorized to perform referee functions, for a motor vehicle that has
been properly tested but does not meet the applicable emission
standards when it is determined that no adjustment or repair can be
made that will reduce emissions from the inspected motor vehicle
without exceeding the applicable repair cost limit, as established
pursuant to Section 44017.1, that every defect specified in paragraph
(2) of subdivision (a) of Section 43204, and in paragraphs (2) and
(3) of subdivision (a) of Section 43205, has been corrected, that the
low-income vehicle owner would suffer an economic hardship if the
extension is not issued, and that all appropriate emissions-related
repairs up to the amount of the applicable repair cost limit in
Section 44017.1 have been performed.
   (d) No repair cost waiver or economic hardship extension shall be
issued under any of the following circumstances:
   (1) If a motor vehicle was issued a repair cost waiver or economic
hardship extension in the previous biennial inspection of that
vehicle. A repair cost waiver or economic hardship extension may be
issued to a motor vehicle owner only once for a particular motor
vehicle belonging to that owner. However, a repair cost waiver or
economic hardship extension may be issued for a motor vehicle that
participated in a previous waiver or extension program prior to
January 1, 1998, as determined by the department. For waivers or
extensions issued in the program operative on or after January 1,
1998, a waiver or extension may be issued for a motor vehicle only
once per owner.
   (2) Upon initial registration of all of the following:
   (A) A direct import motor vehicle.
   (B) A motor vehicle previously registered outside this state.
   (C) A dismantled motor vehicle pursuant to Section 11519 of the
Vehicle Code.
   (D) A motor vehicle that has had an engine change.
   (E) An alternate fuel vehicle.
   (F) A specially constructed vehicle.
   (e) Except as provided in subdivision (f), a certificate of
compliance or noncompliance shall be valid for 90 days.
   (f) Excluding any vehicle whose transfer of ownership and
registration is described in subdivision (d) of Section 4000.1 of the
Vehicle Code, and except as otherwise provided in Sections 4000.1,
24007, 24007.5, and 24007.6 of the Vehicle Code, a licensed motor
vehicle dealer shall be responsible for having a smog check
inspection performed on, and a certificate of compliance or
noncompliance issued for, every motor vehicle offered for retail
sale. A certificate issued to a licensed motor vehicle dealer shall
be valid for a two-year period, or until the vehicle is sold and
registered to a retail buyer, whichever occurs first.
   (g) A test may be made at any time within 90 days prior to the
date otherwise required.
  SEC. 9.  Section 44024.5 of the Health and Safety Code is amended
to read:
   44024.5.  (a)  The department shall compile and maintain
statistical and emissions profiles and data from motor vehicles that
are subject to the motor vehicle inspection program. The department
may use data from any source, including remote sensing data, in use
data, and other motor vehicle inspection program data, to develop and
confirm the validity of the profiles, to evaluate the program, and
to assess the performance of smog check stations. The department
shall undertake these requirements directly or seek a qualified
vendor for these services.
   (b)  The department, in cooperation with the state board, shall
perform analyses of data collected pursuant to subdivision (a) and
report the results to the public annually, beginning no later than
July 1, 2011. The report shall include, at a minimum, all of the
following:
   (1) An independent validation of the evaluation methods, findings,
and conclusions presented in the report.
   (2) The percentage of vehicles that initially passed a smog check
inspection and then failed a subsequent inspection as indicated by
the data collected pursuant to subdivision (a).
   (3) The percentage of vehicles that initially failed a smog check
inspection and then failed a subsequent inspection as indicated by
the data collected pursuant to subdivision (a).
   (4) An estimate of excessive emissions resulting from vehicles
identified in paragraphs (2) and (3).
   (5) A best-efforts explanation regarding the reasons vehicles
identified in paragraphs (2) and (3) inappropriately failed or passed
an inspection.
   (6) Recommended changes to the smog check program to reduce to a
minimum the excess emissions identified in paragraph (4). In
developing the recommended changes, the department and the state
board shall undertake a thorough evaluation of the best practices of
other state smog check inspection programs, and shall include in the
recommendations how these other state best practices can be
incorporated into California's program. Program recommendations
pertaining to contracting with one or more entities to manage smog
check stations shall not be implemented unless the Legislature, by
statute, authorizes that contracting.
   (7) A comparison to the findings of the report "Evaluation of the
California Smog Check Program Using Random Roadside Data" dated March
12, 2009.
   (c) The department and the state board, in consultation with the
Inspection and Maintenance Review Committee, may determine that, in
addition to the vehicles excepted pursuant to Section 44011, certain
other motor vehicles may be excepted from the biennial certification
requirements of this chapter without significantly compromising the
emission reduction objectives set forth in the State Implementation
Plan (SIP).
   (d) The department may conduct a pilot program to except from the
biennial certification requirement those vehicles that may be jointly
determined by the department and the state board, after consultation
with the Inspection and Maintenance Review Committee, to warrant
exception. The department shall provide written notification to the
Legislature specifying the number of vehicles to be exempted as well
as the geographic location and duration of the pilot program not less
than 30 days prior to the implementation of the pilot program. The
department shall submit the results of the pilot program to the state
board and the Inspection and Maintenance Review Committee for
review. Subject to the approval of the United States Environmental
Protection Agency as an amendment to the SIP, the department may
establish the exception program as a permanent program.
   (e) For vehicles four model years old or less, the department
shall use test data generated pursuant to Section 44014.7 to develop
statistical and emissions profiles. The department may use data from
any source, including remote sensing data, warranty repair and recall
data, and other motor vehicle inspection program data, to develop
and confirm the validity of the data. If the department and state
board jointly determine that the emissions from a class of motor
vehicles would potentially compromise the emission reduction
objectives set forth in the SIP, the state board shall consider
appropriate corrective action, including, but not limited to, recall
pursuant to Section 43105.
  SEC. 10.  Section 44036 of the Health and Safety Code is amended to
read:
   44036.  (a) The consumer protection-oriented quality assurance
portion of the motor vehicle inspection program shall ensure uniform
and consistent tests and repairs by all qualified smog check
technicians and licensed smog check stations throughout the state,
and shall include a number of stations providing referee functions
available to consumers.
   (b) (1) All licensed smog check stations shall utilize original
equipment and replacement parts that are certified by the department.
The department may enter into a contract for the supply or service
of certified equipment with the manufacturers and service providers
of this equipment. The department shall afford to the smog check
station the option to purchase the equipment or service directly from
the contractor or any other provider of certified equipment or
service, as determined by the department. A contract executed
pursuant to this paragraph may authorize compensation to the
contractor as provided in subdivision (c) of Section 44037.2.
   (2) The department shall charge a fee for certification testing of
the equipment or the replacement parts. The fee for certification
testing of equipment shall be fixed by the department based upon its
actual costs of certification testing, shall be calculated from the
time that the equipment is submitted for certification testing until
the time that the certification testing is complete, and shall not
exceed ten thousand dollars ($10,000). The fee for certification
testing of replacement parts shall be determined by the department
based upon its actual costs of certification testing, shall be
calculated from the time that the replacement part is submitted for
certification testing until the time that the certification testing
is complete, and shall not exceed two thousand five hundred dollars
($2,500).
   (3) The department shall adopt, and may revise, standards for
certification and decertification of the equipment, that may include
a device for testing of emissions of oxides of nitrogen. The
department shall adopt, and update as necessary, equipment standards
that may include a test analyzer system containing any or all of the
following components:
   (A) A microprocessor to control test sequencing, selection of
proper test standards, the automatic pass or fail decision, and the
format for the test report and the recorded data file. The
microprocessor shall be capable of using a standardized programming
language specified by the department.
   (B) An exhaust gas analysis portion with an analyzer for
hydrocarbons, carbon monoxide, and carbon dioxide that is designed to
accommodate an optional oxides of nitrogen analyzer. An oxides of
nitrogen analyzer shall be required in the enhanced program areas.
   (C) Equipment necessary to perform visual and functional tests of
emission control devices required by the department.
   (D) A device to accept and record motor vehicle identification
information, including a device capable of reading barcode
information pursuant to regulations of the state board. The device
shall have the ability to identify, with the cooperation of the
Department of Motor Vehicles, smog inspections performed on vehicles
sold by used car dealers.
   (E) A device to provide a printed record of the test process and
diagnostic information for the motorist.
   (F) A mass storage device capable of storing not less than the
minimum amount of program software and data specified by the
department.
   (G) A device to provide for the periodic modification of all
program and data files contained on the mass storage device, using a
standardized form of removable media conforming to specifications of
the department.
   (H) A device that provides for the storage of test records on a
standardized form of removable media conforming to specifications of
the department.
   (I) One or more communications ports conforming to the
specifications established by the department as necessary to provide
real time communication, or communication that is consistent with
maintaining a superior quality assurance program and efficient
information transfer, between the test equipment and the centralized
computer database through the computer network maintained by the
department pursuant to Section 44037.1.
   (J) An interface capable of monitoring equipment used with loaded
mode testing, idle testing, onboard diagnostic testing, or other
tests prescribed by the department.
   (K) A real-time computer data program that would prevent a
certificate of compliance from being issued if a vehicle is
identified as having an excessive variance from computer data for
that vehicle, mismatched information, or other irregularities.
   (L) Any other features that the department determines are
necessary to increase the effectiveness of the program, including,
but not limited to, a loaded mode dynamometer for purposes of oxides
of nitrogen detection, and other equipment necessary to detect
nonexhaust-related volatile organic compound emissions, such as those
found in fuel system evaporative emissions and crankcase ventilation
emissions.
   (c) (1) The department shall not require smog check stations to
use equipment that meets revised standards for certification and
decertification of equipment pursuant to subdivision (b) earlier than
January 1, 2013.
   (2) If existing smog check stations licensed pursuant to this
chapter or training institutions certified pursuant to Section
44030.5 are required to make investments of more than ten thousand
dollars ($10,000) to acquire equipment to meet the requirements of
this subdivision, the department shall submit recommendations to the
Governor and the Legislature for any appropriate mitigation measures,
including, but not limited to, subsidies, equipment leases, grants,
or loans.
   (3) The department may defer the requirement for any equipment,
external to the chassis of the test analyzer system, needed to read
barcode information, until a substantial portion of the vehicles
subject to this chapter are equipped with barcode labels.
   (4) Prior to the imposition of a requirement for equipment meeting
the requirements of subdivision (b), every smog check station shall
use equipment meeting the specifications of the department in effect
on January 1, 1996.
   (d) The quality assurance portion shall provide for inspections of
licensed smog check stations, data collection and forwarding,
equipment accuracy checks, operation of referee stations, and other
necessary functions. If the services are contracted for pursuant to
subdivision (e) of Section 44014, the department shall prepare
detailed specifications and solicit bids from private entities for
the implementation of the quality assurance functions.
   (e) The department may revise the specifications for equipment
annually if the cost thereof is less than 20 percent of the total
system cost. A more comprehensive revision to the specifications may
be required not more often than every five years.
   (f) (1) Equipment manufacturers shall furnish to the department,
and shall install, software and hardware updates as specified by the
department. The department shall allow equipment manufacturers six
months, from the date the department issues its proposed
specifications for periodic software and hardware updates, to obtain
department approval that the updates meet the proposed specifications
and to install the updates in all equipment subject to the updates.
During the first 30 days of the six-month period, the manufacturers
shall be permitted to review and to comment upon the proposed
specifications. However, notwithstanding any other provision of this
section, the department may order manufacturers to install software
and hardware changes in a shorter period of time upon a finding by
the department that a previously installed update does not meet
current specifications.
   (2) The department may establish hardware specifications,
performance standards, and operational requirements for the
certification and continuing certification of the equipment specified
in subdivision (b).
   (3)  A manufacturer's failure to furnish or install required
software updates or to meet the specifications, standards, or
requirements established pursuant to paragraph (2), is cause for the
department to decertify the manufacturer's test analyzer system or to
issue a citation to the manufacturer. The citation shall specify the
nature of the violation and may specify a civil penalty not to
exceed one thousand dollars ($1,000) for each day the manufacturer
fails to furnish or install the specified software updates by the
specified period. In assessing a civil penalty pursuant to this
paragraph, the department shall give due consideration, in
determining the appropriateness of the amount of the civil penalty,
to factors such as the gravity of the violation, the good faith of
the manufacturer, and the history of previous violations.
   (4) The citations shall be served pursuant to subdivision (c) of
Section 11505 of the Government Code. The manufacturer may request a
hearing in accordance with Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code. A request
for a hearing shall be submitted in writing within 30 days of service
of the citation, and shall be delivered to the office of the
department in Sacramento. Hearings and related procedures under this
paragraph shall be conducted in the same manner as proceedings for
adjudication of an accusation under that Chapter 5, except as
otherwise specified in this article.
   (5) If within 30 days from the date of service of the citation,
the manufacturer fails to request a hearing, the citation shall be
deemed the final order of the department.
   (6) Any failure to comply with the final order of the department
for payment of a civil penalty, or to pay the amount specified in any
settlement executed by the licensee and the Director of Consumer
Affairs, is cause for decertification of the manufacturer's test
analyzer system.
  SEC. 11.  Section 44050 of the Health and Safety Code is repealed.
  SEC. 12.  Section 44050 is added to the Health and Safety Code, to
read:
   44050.  (a) In addition to or in lieu of any other remedy or
penalty, including, but not limited to, education, training, or an
office conference, the department may issue a citation to a licensee,
contractor, or fleet owner for a violation of the requirements of
this chapter or a regulation adopted pursuant to this chapter. The
citation may contain an order of abatement or the assessment of an
administrative fine, or both.
   (b) An administrative fine issued pursuant to this section shall
be at least one hundred dollars ($100) but not more than five
thousand dollars ($5,000) for each violation. In assessing a fine,
the department shall give due consideration to the appropriateness of
the amount of the fine, including an evaluation of all of the
following:
   (1) The nature, gravity, severity, and seriousness of the
violation.
   (2) The persistence of the violation.
   (3) The good faith or willfulness of the violator.
   (4) The history of previous violations by that violator, including
the commission of numerous and repeated violations.
   (5) The failure to perform work for which money was received.
   (6) The making of any false or misleading statement in order to
induce a person to authorize repair work or pay money.
   (7) The failure to make restitution to consumers affected by the
violation.
   (8) The extent to which the violator has mitigated or attempted to
mitigate any damage or injury caused by the violation.
   (9) The degree of incompetence or negligence in the performance of
duties and responsibilities.
   (10) The purposes and goals of this chapter and other matters as
may be appropriate.
   (c) An order of abatement issued pursuant to this section shall
fix a reasonable time for abatement of the violation. An order of
abatement may require any or all of the following:
   (1) The licensee, contractor, or fleet owner to whom the citation
is issued to demonstrate how future compliance with this chapter, and
regulations adopted pursuant to this chapter, will be accomplished.
This demonstration may include, but is not limited to, submission of
a corrective action plan.
   (2) The smog check technician to successfully complete one or more
retraining courses prescribed by the department pursuant to
subdivision (c) of Section 44031.5, or successfully complete one or
more advanced retraining courses prescribed by the department, or
both.
   (3) The smog check technician to perform no inspection or repair
pursuant to this chapter until training courses prescribed by the
department are successfully completed.
   (d) A citation issued pursuant to this section shall be in writing
and shall describe the nature of the violation and the specific
provision of law determined to have been violated. The citation shall
inform in writing the licensee, contractor, or fleet owner of the
right to request a hearing, as described in Section 44051. If a
hearing is not requested, payment of the administrative fine shall
not constitute an admission of the violation charged. If a hearing is
requested, the department shall provide a hearing in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code, except insofar as those provisions
are inconsistent with the provisions of this article. Payment of the
administrative fine shall be due 30 days after the citation was
issued if a hearing is not requested, or when a final order is
entered if a hearing is requested. The department may enforce the
administrative fine as if it were a money judgment pursuant to Title
9 (commencing with Section 680.010) of Part 2 of the Code of Civil
Procedure.
   (e) Failure to comply with an order of abatement or payment of an
administrative fine issued by the department pursuant to this section
is grounds for suspension or revocation of the license, or placing
the licensee on probation.
   (f) The department shall adopt regulations to establish
procedures, including a penalty schedule, for assessing fines or
penalties for violations of a requirement of this chapter or a
regulation adopted pursuant to this chapter.
   (g) Administrative fines collected pursuant to this section shall
be deposited in the High Polluter Repair or Removal Account within
the Vehicle Inspection and Repair Fund.
  SEC. 13.  Section 44050.5 of the Health and Safety Code is
repealed.
  SEC. 14.  Section 44051 of the Health and Safety Code is repealed.
  SEC. 15.  Section 44051 is added to the Health and Safety Code, to
read:
   44051.  (a) If a person cited pursuant to Section 44050 wishes to
contest the citation, that person shall, within 30 days after service
of the citation, file in writing a request for an administrative
hearing to the chief of the bureau or a designee.
   (b) (1) In addition to, or instead of, requesting an
administrative hearing pursuant to subdivision (a), the person cited
pursuant to Section 44050 may, within 30 days after service of the
citation, contest the citation by submitting a written request for an
informal citation conference to the chief of the bureau or a
designee.
   (2) Upon receipt of a written request for an informal citation
conference, the chief of the bureau or a designee shall, within 60
days of the request, hold an informal citation conference with the
person requesting the conference. The cited person may be accompanied
and represented by an attorney or other authorized representative.
   (3) If an informal citation conference is held, the request for an
administrative hearing shall be deemed withdrawn and the chief of
the bureau, or designee, may affirm, modify, or dismiss the citation
at the conclusion of the informal citation conference. If so affirmed
or modified, the citation originally issued shall be considered
withdrawn and an affirmed or modified citation, including reasons for
the decision, shall be issued. The affirmed or modified citation
shall be mailed to the cited person and that person's counsel, if
any, within 10 days of the date of the informal citation conference.
   (4) If a cited person wishes to contest a citation affirmed or
modified pursuant to paragraph (3), the person shall, within 30 days
after service of the modified or affirmed citation, contest the
affirmed or modified citation by submitting a written request for an
administrative hearing to the chief of the bureau or a designee. An
informal citation conference shall not be held on affirmed or
modified citations.
  SEC. 16.  Section 44051.5 of the Health and Safety Code is
repealed.

SEC. 17.  Section 44052 of the Health and Safety Code is amended to
read:
   44052.  (a) If a citation lists more than one violation, the
amount of the civil penalty or administrative fine assessed shall be
stated separately for each statute and regulation violated.
   (b) If a citation lists more than one violation arising from a
single motor vehicle inspection or repair, the total penalties
assessed shall not exceed five thousand dollars ($5,000).
  SEC. 18.  Section 44053 of the Health and Safety Code is repealed.
  SEC. 19.  Section 44054 of the Health and Safety Code is repealed.
  SEC. 20.  Section 44055 of the Health and Safety Code is amended to
read:
   44055.  (a)  Any failure by an applicant for a license or for the
renewal of a license, or by any partner, officer, or director
thereof, to comply with the final order of the department for the
payment of an administrative fine, or to pay the amount specified in
a settlement executed by the applicant and the Director of the
Department of Consumer Affairs, shall result in denial of a license
or of the renewal of the license. The department shall not allow the
issuance of any certificate of compliance or noncompliance by a
licensee until all civil penalties and administrative fines which
have become final, or amounts agreed to in a settlement, have been
paid by the licensee.
   (b)  The department may deny an application for the renewal of a
test station or repair station license if the applicant, or any
partner, officer, or director thereof, has failed to pay any civil
penalty or administrative fine in accordance with this article.
  SEC. 21.  Section 44056 of the Health and Safety Code is amended to
read:
   44056.  (a) In addition to an administrative fine pursuant to
Section 44050, any person who violates this chapter, or any order,
rule, or regulation of the department adopted pursuant to this
chapter, is liable for a civil penalty of not more than five thousand
dollars ($5,000) for each day in which each violation occurs. Any
action to recover civil penalties shall be brought by the Attorney
General in the name of the state on behalf of the department, or may
be brought by any district attorney, city attorney, or attorney for a
district. In assessing a civil penalty pursuant to this subdivision,
due consideration shall be given to the factors identified in
subdivision (b) of Section 44050.
   (b) The penalties specified in subdivision (a) do not apply to an
owner or operator of a motor vehicle, except an owner or operator who
does any of the following:
   (1) Obtains, or who attempts to obtain, a certificate of
compliance or noncompliance, a repair cost waiver, or an economic
hardship extension without complying with Section 44015.
   (2) Obtains, or attempts to obtain, a certificate of compliance, a
repair cost waiver, or an economic hardship extension by means of
fraud, including, but not limited to, offering or giving any form of
financial or other inducement to any person for the purpose of
obtaining a certificate of compliance for a vehicle that has not been
tested or has been tested improperly.
   (3) Registers a motor vehicle at an address other than the owner's
or operator's residence address for the purpose of avoiding the
requirements of this chapter.
   (4) Obtains, or attempts to obtain, a certificate of compliance by
other means when required to report to the test-only facility after
being identified as a tampered vehicle or gross polluter pursuant to
Section 44015 or 44081.
   (c) Any person who obtains or attempts to obtain a repair cost
waiver, or economic hardship extension pursuant to this chapter by
falsifying information shall be subject to a civil penalty of not
more than five thousand dollars ($5,000), and shall be made
ineligible for receiving any repair assistance of any kind pursuant
to this chapter.
   (d) Any person who obtains or attempts to obtain a certificate of
compliance pursuant to this chapter by falsifying information shall
be subject to a civil penalty of not more than five thousand dollars
($5,000).