BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2683
                                                                  Page  1

          Date of Hearing:   April 21, 2004 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   AB 2683 (Lieber) - As Amended:  March 24, 2004 

          Policy Committee:                              Transportation  
          Vote:        8-4

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

           SUMMARY  

          This bill repeals the "rolling exemption" that exempts vehicles  
          30 or more years-old from the requirements of the Smog Check  
          programs and replaces the rolling exemption with an exemption  
          from the Smog Check programs for vehicles manufactured prior to  
          the 1976 model year.   

          (Currently, 1975 or older model vehicles are exempt. Next year,  
          1976 models will be added to the exemption, 1977 models will be  
          added the next year, and so on.)

           FISCAL EFFECT  

          1)Moderate costs, about $200,000 in FY 2004-05, to the DMV to  
            modify its vehicle registration notification process to  
            adequately notify owners of 1976 model year vehicles that  
            their vehicles are still subject to Smog Check requirements.   
            (Motor Vehicle Account.)

          2)Moderate ongoing and increasing costs to the Bureau of  
            Automotive Repair to continue to regulate 1976 and later model  
            year vehicles over the next several years.  These costs are  
            offset by revenue generated by fees imposed on vehicle owners  
            when they get their vehicles certified at a Smog Check  
            facility.  (Vehicle Inspection and Repair Fund.)

           COMMENTS  

           1)Rationale  .  The author argues that the rolling exemption from  
            the Smog Check Programs for vehicles that are 30 years or  
            older should be ended and replaced with a set exemption for  








                                                                  AB 2683
                                                                  Page  2

            vehicles older than the 1976 model year, because continuing  
            the rolling exemption would exempt an increasing number of  
            vehicles that emit substantially more air pollutants than new  
            vehicles from biennial inspections and other Smog Check  
            requirements.  

            Sponsors project that, by 2010, pre-1982 model year vehicles  
            (that would be exempt if the rolling exemption continued) will  
            account for 22% of the hydrocarbons and 11% of the oxides of  
            nitrogen (Nox) emissions despite representing only 2.6% of the  
            motor vehicle fleet in California and 1.3% of the vehicle  
            miles traveled.  To the extent these older vehicles remain  
            subject to Smog Check requirements some portion of this  
            emission contribution would likely be reduced through better  
            maintenance and vehicle retirement.

           2)DMV Concerns  .  The DMV needs to know what information to  
            provide owners of motor vehicles, including persons who own  
            1976 model year, well before Smog Check notices are sent out  
            with registration renewal notices.  If owners of 1976 model  
            year vehicles are going to continue to be subject to Smog  
            Check requirements in 2005, the DMV needs to know this by July  
            2004.  Since this bill, if it continues to move after a stay  
            on the committee's Suspense file, is not likely to be on the  
            governor's desk before August or September, there is a timing  
            problem for the DMV.  This timing problem would be alleviated  
            if the bill were amended to limit the exemption to vehicles  
            manufactured prior to the 1977 model year. 

           Analysis Prepared by  :    Steve Archibald / APPR. / (916)  
          319-2081