BILL NUMBER: AB 1492	AMENDED
	BILL TEXT

	AMENDED IN SENATE   SEPTEMBER 11, 1997
	AMENDED IN SENATE   SEPTEMBER 2, 1997
	AMENDED IN SENATE   AUGUST 25, 1997
	AMENDED IN SENATE   AUGUST 11, 1997
	AMENDED IN SENATE   JULY 3, 1997
	AMENDED IN ASSEMBLY   MAY 1, 1997
	AMENDED IN ASSEMBLY   APRIL 15, 1997

INTRODUCED BY  Assembly Member Baugh
   (Principal coauthor:  Senator Kopp)

                        FEBRUARY 28, 1997

   An act to amend Sections 44001, 44005, 44011, 44014, 44014.5,
44015, 44017, 44036, and 44040 of, to add  Section 44017.1 to, and to
repeal Section 44015.3 of, the Health and Safety Code, and to repeal
Section 4000.7 of  the Vehicle Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1492, as amended, Baugh.  Air pollution:  motor vehicle
inspection and maintenance.
   (1) Existing law establishes a motor vehicle inspection and
maintenance (smog check) program, administered by the Department of
Consumer Affairs and the State Air Resources Board.  The smog check
program is required to provide for inspection of motor vehicles upon
registration, biennially upon renewal of registration, upon transfer
of ownership, and in certain other circumstances.
   This bill would require the smog check program to provide for the
inspection, in those instances, only of specified motor vehicles, as
determined by the department, except as otherwise provided in the
smog check law.
   (2) Existing law, a part of the smog check program, requires all
motor vehicles that are registered in designated areas of the state
to biennially obtain a certificate of compliance or noncompliance
with motor vehicle emission standards, except for certain exempted
motor vehicles.  Existing law requires the cost limit for repairs
under the smog check program to be a minimum of $450, except as
specified.  Existing law requires the issuance of an emission cost
waiver for a motor vehicle that has been properly tested but does not
meet the applicable emission standards, if no adjustment or repair
will reduce emissions from the vehicle without exceeding the $450
cost limit. The department is required to develop and implement
either a repair subsidy program or a program that would provide for a
12-month economic hardship extension for motor vehicles from the
biennial certificate of compliance requirement under specified
circumstances, as prescribed.
   A violation of any provision relating to those requirements is a
misdemeanor.
   This bill would authorize the department, after fulfilling
specified requirements, to conduct a pilot program to exempt certain
motor vehicles from the biennial certification requirement and, with
the approval of the Environmental Protection Agency, to establish
permanent exemptions.  The bill would exempt from the biennial
certification requirement any motor vehicle or class of motor
vehicles 4 years old or less, except as specified.
   The bill would repeal certain provisions regarding the economic
hardship extension program.  The bill would change references to
"emission cost waiver" to "repair cost waiver," and would require
that such a waiver be issued only upon request.  The bill would
prohibit the issuance of a repair cost waiver until all appropriate
emissions-related partial repairs up to the amount of the repair cost
limit have been performed.
   The bill would lower the $450 repair cost limit to $200, or $250,
as specified, for motor vehicle owners that qualify as low-income.
The bill would subject any person who obtains or attempts to obtain a
repair cost waiver by falsifying information to a civil penalty of
not less than $150 and not more than $1,000, and would prohibit them
from receiving any repair assistance pursuant to specified existing
law.  The bill would create a state-mandated local program by
creating new crimes or changing the definition of existing crimes.
   (3) Existing law requires the testing and repair portion of the
smog check program to be conducted by licensed smog check stations,
and authorizes a station to be licensed as a smog check test-only
station.  Existing law requires the department, in enhanced program
areas, to contract with test-only stations to provide referee
services to the extent necessary to provide appropriate access to
referee functions.
   This bill would authorize the department to authorize  the
placement of referees in  qualified test-only stations to
 perform   provide  referee services
 and would authorize the department to adopt specified
  , as prescribed,  regulations with regard
to   the  qualification  of referees  and
the provision of referee services.
   (4) The bill would require the state board and the Bureau of
Automotive Repair, on or before January 1, 2003, to design a new
proposed program to replace the existing motor vehicle inspection and
maintenance program and submit to the Legislature a report on that
new program.  The bill would require a specified review committee to
review the proposed program by July 1, 2003, and submit a proposed
plan to the Legislature.  The bill would make a related statement of
legislative intent.
   (5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (6)  The bill would incorporate additional changes in Section
44011 of the Health and Safety Code proposed by SB 42, to be
operative only if this bill and SB 42 are both enacted and become
effective on or before January 1, 1998, each bill amends Section
44011 of the Health and Safety Code, and this bill is enacted last.
   (7)  The bill would become operative only if both AB 57 and
AB 208 are enacted and take effect on or before January 1, 1998.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


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


  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) Since the adoption of the federal Clean Air Act in 1972,
California has made great strides in improving air quality.
   (b) To comply with federal air quality standards by the year 2010,
and to meet every Californian's desire for cleaner air, further
reductions in air pollution are necessary.
   (c) California's stationary source industries and businesses are
already among the cleanest in the world, and tighter regulations will
achieve few additional pollution reductions.
   (d) Mobile sources generate roughly one-half of all the remaining
air pollution in this state, and the worst polluting 10 to 15 percent
of automobiles generate one-half of all the pollution caused by
mobile sources.
   (e) Motor vehicle inspection and maintenance programs can
significantly reduce vehicle emissions and thereby contribute to the
attainment of clean air standards.
   (f) Any motor vehicle inspection and maintenance program should
provide the maximum possible pollution reduction at a minimum cost
and inconvenience to the people of the state.
   (g) The Legislature recognizes that where new government
regulations impose significant costs on businesses or individuals,
the government has a responsibility to ensure that the burden of
compliance does not fall unfairly on any one group or class of
people.
  SEC. 2.  It is the intent of the Legislature that the Department of
Consumer Affairs and the State Air Resources Board adhere to the
following principles in implementing the motor vehicle inspection and
maintenance program established by Chapter 5 (commencing with
Section 44000) of Part 5 of Division 26 of the Health and Safety
Code:
   (a) To promote consumer convenience and acceptance, a program
phase-in of the enhanced smog check program requirements in those
areas newly subject to those requirements should be developed.  Any
program phase-in should be consistent with the availability of test,
repair, referee, and other facilities necessary to provide reliable
and convenient service to vehicle owners subject to the program.
   (b) Consistent with Section 44070.5, the Department of Consumer
Affairs shall develop and implement a thorough public awareness and
education program that provides motor vehicle owners with information
about enhanced smog check program features, such as the causes of
smog check failures, vehicle retesting, repair, referee station
options, the importance of proper maintenance and effective repairs,
and any economic relief programs.  Such a program is essential to the
success of the inspection and maintenance program.
   (c) It is the intent of the Legislature that the enhanced smog
check program should be reviewed and modified, as appropriate, based
on improvements in the program, technological advances in testing and
diagnostic equipment, including remote sensing devices, and vehicle
emission control technology when appropriate.  It is further the
intent of the Legislature that a new program should replace that
program not later than 2005.
  SEC. 3.  Section 44001 of the Health and Safety Code is amended to
read:
   44001.  (a) The Legislature hereby finds and declares that
California has been required, by the amendments enacted to the Clean
Air Act in 1990, and by regulations adopted by the Environmental
Protection Agency, to enhance California's existing motor vehicle
inspection and maintenance program to meet new, more stringent
emission reduction targets.  Therefore, the Legislature declares that
the 1994 amendments to this chapter are adopted to implement further
improvements in the existing inspection and maintenance program so
that California will meet or exceed the new emission reduction
targets.
   (b) The Legislature further finds and declares all of the
following:
   (1) California is recognized as a leader in establishing
performance standards for its air quality programs and those
standards have been adopted by many other states and countries.
   (2) Studies show that a minority of motor vehicles produce a
disproportionate amount of the pollution caused by vehicle emissions.
  Those vehicles are referred to as gross polluters.
   (3) The concept of periodic testing alone does not act as a
sufficient deterrent to tampering, or as a sufficient incentive for
vigilant vehicle maintenance by a significant percentage of
motorists.  Gross polluters continue to be driven on the roadways of
California.
   (4) (A) New technology, known as remote sensing, offers great
promise as a cost-effective means to detect vehicles emitting excess
emissions as the vehicles are being driven.  This type of detection
offers many valuable applications, especially its use between
scheduled tests, as an inexpensive, random, and pervasive means of
identifying vehicles which are gross polluters and targeting those
vehicles for repair or other methods of emission reduction.
   (B) Another new technology, the development of emissions profiles
for motor vehicles, allows the motor vehicle inspection program to
accurately identify both high- and low-emitting vehicles.  This
technology may allow the full or partial exception of certain
vehicles from biennial certification requirements to the extent
determined by the department.
   (5) California continues to seek strict adherence to federal and
state performance standards and to results-based evaluations that
meet the state's unique circumstances, and which consist of all of
the following:
   (A) Acceptance of the shared obligation and personal
responsibility required to successfully inspect and maintain millions
of motor vehicles.  Specifically, that obligation begins with this
chapter, and extends through those regulators charged with its
implementation and enforcement.  Through the enactment of the 1994
amendments to this chapter, the Legislature hereby recognizes and
seeks to encourage, through a number of innovative and significant
steps, the critical role that each California motorist must play in
maintaining his or her vehicle's emission control systems in proper
working order, in such a way as to continuously meet mandated
emission control standards and ensure for California the clean air
essential to the health of its citizens, its communities, and its
economy.
   (B) A focus on the detection, diagnosis, and repair of broken,
tampered, or malfunctioning vehicle emission control systems.
   (C) Flexibility to incorporate and implement future new scientific
findings and technological advances.
   (D) Consideration of convenience and costs to those who are
required to participate, including motorists, smog check stations,
and technicians.
   (E) An enforcement program which is vigorous and effective and
includes monitoring of the performance of the smog check test or
repair stations and technicians, as well as the monitoring of vehicle
emissions as vehicles are being driven.
   (c) The Legislature further finds and declares that California is,
as of the effective date of this section, implementing a number of
motor vehicle emission reduction strategies far beyond the effort
undertaken by any other state, including all of the following:
   (1) California certification standards exceed those of the other
49 states, increasing the cost of a new car to a California consumer
by one hundred fifty dollars ($150) or more.
   (2) State board regulations mandate increasing availability for
sale of low-emission, ultra-low emission, and zero-emission vehicles,
including, by 2003, 10 percent zero-emission vehicles.
   (3) Effective in 1996, state board regulations mandate the
reformulation of gasoline for reduced emissions, at an estimated
increased production cost of 5 to 15 cents per gallon due to refinery
modifications and higher production costs.
   (4) Cleaner diesel fuel regulations, more stringent than federal
standards, took effect in California in October 1993, increasing
diesel fuel costs by 4 to 6 cents per gallon.
   (5) California law provides for vehicle registration surcharges of
up to four dollars ($4) per vehicle in nonattainment areas for air
quality-related projects.
   (6) California law taxes cleaner fuels at one-half the rate of
gasoline and diesel fuel.
   (7) California law provides tax credits for the purchase of
low-emission vehicles.
   (8) California requires smog checks and repairs whenever a vehicle
changes ownership, some 3 million vehicles annually, in addition to
the regular biennial tests.
   (9) Low-value vehicles are discouraged from entering California
due to the imposition of a three hundred dollar ($300) smog impact
fee on vehicles that are not manufactured to California certification
standards.
   (10) California imposes sales taxes on motor vehicle fuels and
dedicates most of those revenues to mass transit.  This increases the
cost of fuels by seven cents ($.07) per gallon.
   (11) Transportation sales taxes in most urban counties also
generate substantial funding for transit and other
congestion-reduction measures, costing the average urban California
resident fifty dollars ($50) to one hundred dollars ($100) annually,
which would be the equivalent of another 8 to 16 cents per gallon of
fuel.
  SEC. 4.  Section 44005 of the Health and Safety Code is amended to
read:
   44005.  (a) The Department of Motor Vehicles shall cooperate with
the department in implementing any changes to enhance the program to
achieve greater efficiency, cost-effectiveness, and convenience, or
to reduce excess emissions in accordance with this chapter.
   (b) The program shall provide for inspection of specified motor
vehicles, as determined by the department, upon initial registration,
biennially upon renewal of registration, upon transfer of ownership,
upon the issuance of a notice of noncompliance to a gross polluter
pursuant to Section 44081, and as otherwise provided in this chapter.

  SEC. 5.  Section 44011 of the Health and Safety Code is amended to
read:
   44011.  (a) All motor vehicles powered by internal combustion
engines that are registered within an area designated for program
coverage shall be required biennially to obtain a certificate of
compliance or noncompliance, except for all of the following:
   (1) Every motorcycle, and every diesel-powered vehicle, until the
department, pursuant to Section 44012, implements test procedures
applicable to motorcycles or to diesel-powered vehicles, or both.
   (2) Any motor vehicle that has been issued a certificate of
compliance or noncompliance or a repair cost waiver upon a change of
ownership or initial registration in this state during the preceding
six months.
   (3) Any motor vehicle manufactured prior to the 1966 model-year.
   (4) (A) Any motor vehicle four or less model-years old.
   (B) Any motor vehicle excepted by this paragraph shall be subject
to testing and to certification requirements as determined by the
department, if any of the following apply:
   (i) The department determines through remote sensing activities or
other means that there is a substantial probability that the vehicle
has a tampered emission control system or would fail for other cause
a smog check test as specified in Section 44012.
   (ii) The vehicle was previously registered outside this state and
is undergoing initial registration in this state.
   (iii) The vehicle is being registered as a specially constructed
vehicle.
   (iv) The vehicle has been selected for testing pursuant to Section
44014.7 or any other provision of this chapter authorizing
out-of-cycle testing.
   (5) Any motor vehicle or class of motor vehicles exempted pursuant
to subdivision (b) of Section 44024.5.
   (6) Any motor vehicle that the department determines would present
prohibitive inspection or repair problems.
   (7) Any vehicle registered to the owner of a fleet licensed
pursuant to Section 44020 if the vehicle is garaged exclusively
outside the area included in program coverage, and is not primarily
operated inside the area included in program coverage.
   (b) Vehicles designated for program coverage in enhanced areas
shall be required to obtain inspections from appropriate smog check
stations operating in enhanced areas.   
  SEC. 5.5.  Section 44011 of the Health and Safety Code is amended
to read: 
   44011.  (a) All motor vehicles powered by internal combustion
engines  which   that  are registered
within an area designated for program coverage shall be required
biennially to obtain a certificate of compliance or noncompliance,
except for all of the following:
   (1) Every motorcycle, and every diesel-powered vehicle, until the
department, pursuant to Section 44012, implements test procedures
applicable to motorcycles or to diesel-powered vehicles, or both.
   (2) Any motor vehicle  which   that  has
been issued a certificate of compliance or noncompliance or 
an emission   a repair  cost waiver upon a change
of ownership or initial registration in this state during the
preceding six months  , or which has been issued a
certificate of exemption pursuant to Section 4000.6 or 4000.7 of the
Vehicle Code  .
   (3)  Any   (A) Prior to January 1, 2003, any
 motor vehicle manufactured prior to the  1966 
 1974  model-year. 
   (B) Beginning January 1, 2003, any motor vehicle that is 30 or
more model-years old. 
   (4)  (A)  Any  other  motor vehicle
 which   four or less model-years old.  

   (B) Any motor vehicle excepted by this paragraph shall be subject
to testing and to certification requirements as determined by the
department, if any of the following apply:
   (i) The department determines through remote sensing activities or
other means that there is a substantial probability that the vehicle
has a tampered emission control system or would fail for other cause
a smog check test as specified in Section 44012.
   (ii) The vehicle was previously registered outside this state and
is undergoing initial registration in this state.
   (iii) The vehicle is being registered as a specially constructed
vehicle.
   (iv) The vehicle has been selected for testing pursuant to Section
44014.7 or any other provision of this chapter authorizing
out-of-cycle testing.
   (5) Any motor vehicle or class of motor vehicles exempted pursuant
to subdivision (b) of Section 44024.5.
   (6) Any motor vehicle that  the department determines would
present prohibitive inspection or repair problems.  
   (5)  
   (7)  Any vehicle registered to the owner of a fleet licensed
pursuant to Section 44020 if the vehicle is garaged exclusively
outside the area included in program coverage, and is not primarily
operated inside the area included in program coverage.
   (b) Vehicles designated for program coverage in enhanced areas
shall be required to obtain inspections from appropriate smog check
stations operating in enhanced areas.
  SEC. 6.  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) (1) 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.

   (2) The department may authorize  the placement of referees in
 qualified test-only stations to  perform referee
services.   provide referee services as a matter of
convenience to the public.  The department shall supply those
referees directly or through a contractor.  A referee shall have no
ownership interest in the facility at which the referee is located.
Referees shall be solely responsible for issuing repair cost waivers,
certificates of compliance or noncompliance, and hardship
extensions, in accordance with regulations adopted by the department.
 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 test-only stations that perform referee services.
   (c) 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.
   (d) 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.
   (e) The consumer protection-oriented quality assurance portion of
the program may be conducted by one or more private entities pursuant
to contracts with the department.
  SEC. 7.  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 shall be
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 provide for the distribution to consumers
by test-only facilities of 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.
   (d) The department shall establish standards for training,
equipment, performance, or data collection for test-only facilities.

   (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.
   (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 and certified
pursuant to Section 44014.2 may be issued a certificate of compliance
by a test-only facility or by the licensed smog check station
certified pursuant to Section 44014.2 at which they were initially
identified as a gross polluter.
   (B) For purposes of this section, the department may conduct a
pilot program to allow 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.  For the
purposes of this pilot program, the department may adopt regulations
imposing additional station requirements.
   (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 and is participating in the
pilot program pursuant to subparagraph (B) of paragraph (2) of
subdivision (g), for a postrepair inspection and retest pursuant to
subdivision (g).  Simply passing the emissions test shall not be 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. 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 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 Section 44014 and 44014.2 and
is participating in the pilot program pursuant to subparagraph (B)
of paragraph (2) of subdivision (g) of Section 44014.5.
   (3) 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 a gold shield station or a test-only facility
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.
   (2) A low-income repair cost waiver shall be issued, upon request
of a qualified low-income motor vehicle owner, by a gold shield
facility, or a test-only facility 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, and
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.
   (d) No repair cost waiver shall be issued under any of the
following circumstances:
   (1) If a motor vehicle was issued a repair cost waiver in the
previous biennial inspection of that vehicle.  A repair cost waiver
may be issued to a motor vehicle owner only once for a particular
motor vehicle belonging to that owner.  However, a repair cost waiver
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 issued in the waiver program
operative on or after January 1, 1998, a waiver may be issued for a
motor vehicle only once per owner.  No repair cost waiver shall
exceed two years' duration.
   (2)  Upon initial registration of all of the following:  a direct
import motor vehicle, a motor vehicle previously registered outside
this state, a dismantled motor vehicle pursuant to Section 11519 of
the Vehicle Code, a motor vehicle that has had an engine change, an
alternate fuel vehicle, and a specially constructed vehicle.
   (3) Unless all appropriate emissions-related partial repairs at
least equal to the amount of the applicable repair cost limit in
Section 44017 or Section 44017.1, if applicable, have been performed.

   (e) A certificate of compliance or noncompliance shall be valid
for 90 days.
   (f) A test may be made at any time within 90 days prior to the
date otherwise required.
  SEC. 9.  Section 44015.3 of the Health and Safety Code is repealed.

  SEC. 10.  Section 44017 of the Health and Safety Code is amended to
read:
   44017.  (a) Except as otherwise provided in this section or
Section 44017.1, the cost limit for repairs under the program,
including parts and labor, shall be a minimum of four hundred fifty
dollars ($450) in all areas where the program operates.
   (b) The limit established pursuant to subdivision (a) shall not
become operative until the department issues a public notice
declaring that the program established pursuant to Section 44010.5 is
operational in the relevant geographical areas of the state, or
until the date that testing in those geographic areas is operative
using loaded mode test equipment, as defined in this article,
whichever occurs first.  Prior to that
               time, the following cost limits shall remain in
effect:
   (1) For motor vehicles of 1971 and earlier model years, fifty
dollars ($50).
   (2) For motor vehicles of 1972 to 1974, inclusive, model years,
ninety dollars ($90).
   (3) For motor vehicles of 1975 to 1979, inclusive, model years,
one hundred twenty-five dollars ($125).
   (4) For motor vehicles of 1980 to 1989, inclusive, model years,
one hundred seventy-five dollars ($175).
   (5) For motor vehicles of 1990 to 1995, inclusive model years,
three hundred dollars ($300).
   (6) For motor vehicles of 1996 and later model years, four hundred
fifty dollars ($450).
   (c) The department shall periodically revise the repair cost
limits specified in subdivisions (a) and (b) in accordance with
changes in the Consumer Price Index, as published by the United
States Bureau of Labor Statistics.
   (d) If insufficient funds are available to adequately fund the
low-income repair assistance program during any year, the repair cost
limits shall revert to those specified in subdivision (b).
   (e) No repair cost limit shall be imposed in those cases where
emissions control equipment is missing or is partially or totally
inoperative as a result of being tampered with.
  SEC. 11.  Section 44017.1 is added to the Health and Safety Code,
to read:
   44017.1.  Notwithstanding subdivision (a) of Section 44017, for
motor vehicle owners qualified as low income under Section 44062.1,
the repair cost limit, including parts and labor, shall be a minimum
of two hundred dollars ($200) in all areas where the program
operates.  However, the department may increase that minimum, to not
more than two hundred fifty dollars ($250), if the department
determines that the program is not cost-effective.
  SEC. 12.  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) All licensed smog check stations shall utilize original
equipment and replacement parts that are certified by the department.
  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).  The department shall adopt, and may revise, standards for
certification and decertification of the equipment, which may include
a device for testing of emissions of oxides of nitrogen.  As
expeditiously as possible, the department shall adopt equipment
standards that include a test analyzer system containing all of the
following:
   (1) 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.
   (2) 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.
   (3) Equipment necessary to perform visual and functional tests of
emission control devices required by the department.
   (4) A device to accept and record motor vehicle identification
information, including a device capable of reading bar code
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.
   (5) A device to provide a printed record of the test process and
diagnostic information for the motorist.
   (6) A mass storage device capable of storing not less than the
minimum amount of program software and data specified by the
department.
   (7) 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.
   (8) A device that provides for the storage of test records on a
standardized form of removable media conforming to specifications of
the department.
   (9) 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 data base through the computer network maintained by the
department pursuant to Section 44037.1.
   (10) An interface capable of monitoring equipment used with loaded
mode testing, idle testing, on board diagnostic testing, or other
tests prescribed by the department.
   (11) 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 found
in fuel system evaporative emissions and crankcase ventilation
emissions.
   (c) The department shall require all smog check stations to use
equipment meeting the requirements of subdivision (b) as soon as
possible, but not later than January 1, 1996.  However, the
department may defer the requirement for any equipment, external to
the chassis of the test analyzer system, needed to read bar code
information, until a substantial portion of the vehicles subject to
this chapter are equipped with bar code labels.  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,
1988.
   (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 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 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 changes in a shorter
period of time upon a finding by the department that a previously
installed update does not meet current specifications.  A
manufacturer's failure to furnish or install software updates as so
specified 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 subdivision, 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.
   (2) 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 subdivision 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.
   (3) 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.
   (4) 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. 13.  Section 44040 of the Health and Safety Code is amended to
read:
   44040.  The department may require certificates of compliance,
certificates of noncompliance, and repair cost waivers to contain a
unique number encoded in bar code.  These certificates may be sold to
licensed smog check stations by the department, printed by test
analyzer systems, or transmitted by electronic means.  The
department, with the cooperation of the Department of Motor Vehicles,
shall periodically check certificates to determine their validity.

  SEC. 14.  Section 4000.7 of the Vehicle Code is repealed.
  SEC. 15.  (a) It is the intent of the Legislature to replace the
existing vehicle inspection and maintenance program in Chapter 5
(commencing with Section 44000) of Part 5 of Division 26 of the
Health and Safety Code, on or before January 1, 2005.
   (b) On or before January 1, 2003, the State Air Resources Board
and the Bureau of Automotive Repair shall design a new proposed
program to replace the existing vehicle inspection and maintenance
program and submit to the Legislature a report on that new program.
   (c) Not later than July 1, 2003, the Inspection and Maintenance
Review Committee shall review the program proposed pursuant to
subdivision (b) and shall submit to the Legislature a plan proposed
by the committee.
  SEC. 16.  No reimbursement is required by this act pursuant to Sec
tion 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.
  SEC. 17.   Section 5.5 of this bill incorporates amendments to
Section 44011 of the Health and Safety Code proposed by both this
bill and SB 42.  It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 1998, (2) each
bill amends Section 44011 of the Health and Safety Code, and (3) this
bill is enacted after SB 42, in which case Section 5 of this bill
shall not become operative.
  SEC. 18.   This act shall become operative only if both
Assembly 57 and Assembly Bill 208 of the 1997-98 Regular Session of
the Legislature are enacted and take effect on or before January 1,
1998.