BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1239 (Gaines) - Smog check: exemptions
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|Version: April 26, 2016 |Policy Vote: T. & H. 6 - 5 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 9, 2016 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 1239 would provide an exemption from smog check
requirements for motor vehicles with a model year of 1976-1980
until January 1, 2019, if the owner submits proof that the
vehicle is insured as a collector car.
Fiscal
Impact:
Unknown costs to the Bureau of Automotive Repair (BAR) to
modify information technology systems. These costs would
likely to be incurred a second time when the exemption expires
in 2019. (Vehicle Inspection and Repair Fund)
Unknown loss of smog certification revenues, potentially in
excess of $150,000 for two years, depending on the number of
vehicles insured as collector cars. (Vehicle Inspection and
Repair Fund) ------See staff comments-----
SB 1239 (Gaines) Page 1 of
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Minor and absorbable BAR costs to update smog check
regulations and publications. (Vehicle Inspection and Repair
Fund)
Likely minor costs to the Department of Motor Vehicles (DMV)
to review evidence that a vehicle is insured as a collector in
order to waive the smog check requirement. (Motor Vehicle
Account)
Background: Existing law establishes the Motor Vehicle Inspection Program,
commonly known as the smog check program, as a means to measure
motor vehicle related pollutants. The program is administered
by BAR and generally requires gas-powered motor vehicles to pass
a biennial smog check inspection with specified exceptions, such
as vehicles manufactured prior to the 1976 model year,
alternative fuel vehicles, and vehicles six model years old or
newer. As a condition of initial registration, upon change of
ownership, and renewal of vehicle registration, the vehicle
owner must submit to DMV a valid certificate of compliance
indicating that the vehicle has passed its smog inspection.
Existing law defines a "collector motor vehicle" as a motor
vehicle owned by a collector that is used primarily in shows,
parades, charitable functions, and historical exhibitions for
display, maintenance, and preservation, and is not used
primarily for transportation. Existing law provides a partial
smog check exemption for some collector vehicles. Specifically,
a collector motor vehicle is exempt from the visual and
functional inspection of emission controls if it is at least 35
years old, and the owner can demonstrate that the vehicle is
insured as a collector vehicle. These vehicles must still pass
a functional inspection of the fuel cap, a visual inspection for
liquid fuel leaks, and a tailpipe emissions test.
Proposed Law:
SB 1239 would exempt a motor vehicle that is insured as a
collector vehicle, and manufactured after the 1976 but prior to
the 1981 model year, from smog check requirements until January
1, 2019.
Staff
Comments: BAR data indicates that approximately 105,000
SB 1239 (Gaines) Page 2 of
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vehicles with a 1976-1980 model year were given smog check tests
over the past two years. The number of vehicles with collector
car insurance is unknown, but if the exemption in this bill
applied to 18,200 vehicles in a given year, the revenue losses
would exceed $150,000. The bill is likely to create an
incentive for vehicle owners to acquire collector insurance in
order to avoid smog check requirements, especially since the
average smog check failure rate for vehicles with a 1976-1980
model year exceeds 30 percent (over 32,000 vehicles over the
past two years).
Staff notes this bill does not require a vehicle to meet the
statutory definition of a "collector motor vehicle" to qualify
for the smog check exemption, but the owner would be required to
demonstrate that the vehicle is insured as a collector vehicle.
A cursory review of insurance products indicates that collector
car insurance is readily available without mileage restrictions,
but the insured person must certify that the vehicle is not a
"daily driver" and that all household members have a regular-use
vehicle insured for daily driving.
BAR indicates that the bill is likely to require modifications
to information technology systems, but was unable to provide an
estimate of those costs at the time of this analysis.
DMV costs would be minor since the department is likely to
implement the bill by requiring vehicle owners to appear in a
field office for inspection of insurance documents to qualify
for a waiver of the smog check requirements.
Staff notes that older vehicles are typically higher polluters
and have a disproportionate impact on air quality, even though
they make up a very small percentage of the registered vehicles
in the state. The smog check program is a measure included in
the State Implementation Plan to achieve federal ozone and
particulate matter standards in non-attainment areas. To the
extent this bill's exemption results in a significant loss of
emission reductions, the California Air Resources Board would
need to conduct analysis to identify, develop, and implement
substitute emission control measures to make up for those lost
emission reductions. Costs to complete that work would be
significant.
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Recommended
Amendments: Staff notes that the bill is intended to apply the
exemption to vehicles with a model year of 1976 through 1980,
but it is currently drafted to apply to vehicles "manufactured
after the 1976 model year but prior to the 1981 model year."
Since existing law exempts all vehicles manufactured prior to
1976, the current bill would still require 1976 model year
vehicles to comply with smog check requirements. The bill
should be amended to correct this oversight.
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