BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2289
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 2289 (Eng) - As Amended:  April 21, 2010 

          Policy Committee:                               
          TransportationVote:8-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the Department of Consumer Affairs (DCA) to  
          require smog check stations to use computerized onboard  
          diagnostic systems for new vehicles and provides DCA with  
          administrative and civil penalty authority.  Specifically, this  
          bill:

          1)Authorizes DCA to require Smog Check stations to use onboard  
            diagnostic (OBD) systems for vehicles model year 2000 and  
            newer.

          2)Provides for an alternative Smog Check test system for  
            vehicles not equipped with 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 DCA and the Air Resources Board  
            (ARB).

          3)Authorizes DCA to certify smog check stations that meet higher  
            standards and that may inspect and certify problematic or  
            especially polluting vehicles.

          4)Allows DCA to impose an administrative fine, of no less than  
            $100 and no more than $5,000 per violation, against a  
            licensee, contractor, or fleet owner who violates Smog Check  
            requirements and provides for appeal.  Directs revenues to the  
            High Polluter Repair or Removal Account (HPRRA) within the  
            Vehicle Inspection and Repair Fund (VIRF).

          5)Allows law enforcement officials, acting on behalf of DCA, to  
            impose a civil penalty of not more than $5,000 for each day  








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            the violation occurs, and specifies that any person who  
            fraudulently attempts to obtain a certificate of compliance  
            will be subject to a civil penalty of not more than $5,000.

          6)Requires DCA, in consultation with ARB, to collect and analyze  
            Smog Check data and make the analysis publicly available each  
            year.

           FISCAL EFFECT  

             1)   Annual costs to DCA, ranging from $350,000 to $450,000,  
               to develop new Smog Check standards, certify test stations  
               that meet higher standards, enforce compliance, and  
               collect, analyze and publish data (VIRF).

             2)   Minor, absorbable costs to ARB to consult with DCA.

           COMMENTS  

           1)Rationale  .  The DCA and ARB (sponsors) contend this bill will  
            save consumers time and money, improve consumer protection and  
            reduce air pollution.  This is because, according to the  
            sponsors, OBD II equipment is less costly than conventional  
            smog check equipment and allows, faster and more-accurate  
            testing of a vehicle's emissions.  The sponsors also contend  
            the more-stringent standards for high performance Smog Check  
            stations will ensure older, higher polluting vehicles not  
            equipped with OBD II will receive accurate emissions testing  
            and repair and the enhanced enforcement provisions will better  
            guarantee program compliance, thereby reducing air pollution.

           2)Background  .  

              a)   Smog Check  .  The Bureau of Automotive Repair (BAR)  
               within DCA administers California's Smog Check program,  
               which began in 1982. State law requires  
               California-registered gasoline-powered motor vehicles  
               registered in areas of the state suffering from high levels  
               of air pollution to have a Smog Check inspection every two  
               years.  In addition, all cars must be tested for emissions  
               upon change of ownership and initial registration.  BAR  
               licenses two types of Smog Check test centers-test only  
               centers, which cannot repair vehicles, and "gold shield"  
               centers, which can make repairs.









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               California's Smog Check program includes two inspection  
               procedures for 1996 and newer model-year vehicles: a  
               tailpipe emission test and inspection of a vehicle's OBD II  
               system.  Federal law requires all newer vehicles to include  
               an OBD II system, which monitors the performance of the  
               vehicle's emission control systems. 

              b)   Effectiveness of OBD II.    The Inspection and  
               Maintenance Review Committee (IMRC) is created in law as an  
               advisory body to review and evaluate the Smog Check program  
               and to recommend program improvements. According to IMRC:
             
                i)     The United States Environmental Protection Agency  
                 and state authorities have generally found, when compared  
                 to existing tailpipe testing procedures, OBD II systems  
                 are more effective in detecting emission-related  
                 malfunctions on in-use vehicles. 
               ii)    Vehicles are more than twice as likely to fail an  
                 OBD II-based inspection as the tailpipe emissions test. 
               iii)   Nearly every state besides California that has a  
                 smog check program relies exclusively on OBD II system  
                 inspections for 1996 and newer vehicles.

              c)   Sierra Research-A Check on Smog Check  .  Operating under  
               a contract with ARB, Sierra Research, Inc. conducted an  
               analysis of the Smog Check program.  Using data collected  
               from 2003 to 2006, Sierra observed roadside emission  
               inspection results for 1976-95 model year vehicles, which  
               are not equipped with OBD II.  Sierra then compared these  
               results to inspection results for the same vehicles as  
               reported by Smog Check stations.  Of the vehicles sampled,  
               19% passed a tailpipe inspection at a licensed Smog Check  
               station, but failed a roadside audit inspection within a  
               year.  In addition, Sierra found 49% of vehicles sampled  
               that failed a roadside audit inspection had failed, and  
               then subsequently passed, a tailpipe inspection at a Smog  
               Check station within the past year.  Sierra did not attempt  
               to explain the discrepancy between the roadside test  
               results and the Smog Check station test results.  However,  
               Sierra noted that if Smog Check stations were to achieve  
               emissions test results in keeping with the observed  
               roadside test results, vehicle emissions avoided because of  
               the Smog Check program would increase by 30%.

           3)Support  .  This bill is supported by ARB, BAR, and a numerous  








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            environmental health organizations, who contend it will reduce  
            costs to consumers and improve air quality.

           4)Opposition  .  The bill is opposed by California Emissions  
            Testing Industries and several other industry groups.  These  
            opponents contend this bill:

             a)   Causes the loss of over 5,000 jobs and millions of  
               dollars in economic activity.
             b)   Ends the separation of Smog Check testing from vehicle  
               repair, thereby threatening the livelihood of test-only  
               center operators whose specialize businesses are not  
               equipped to compete with full-service Smog Check centers.
             c)   Threatens the integrity of the Smog Check program  
               because of the unreliability of OBD II test results.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081