BILL ANALYSIS
AB 823
Page 1
GOVERNOR'S VETO
AB 823 (Hill)
As Amended September 1, 2009
2/3 vote
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|ASSEMBLY: |56-19|(June 3, 2009) |SENATE: |23-10|(September 2, |
| | | | | |2009) |
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|ASSEMBLY: |57-22|(September 8, | | | |
| | |2009) | | | |
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Original Committee Reference: TRANS .
SUMMARY : Revises the income eligibility level for vehicle owners
requesting assistance from the California Department of Consumer
Affairs, Bureau of Automotive Repair (BAR).
The Senate amendments :
1)Delete this bill's provisions related to the BAR vehicle scrappage
program.
2)Increase the maximum income eligibility level from 200% to 225% of
the federal poverty level for low-income motor vehicle owners who
may request vehicle repair consumer funding assistance.
EXISTING LAW :
1)Establishes the smog check program, administered by BAR and the
California Air Resources Board (ARB). Requires, generally,
vehicles that are registered in non-attainment areas for ozone or
carbon monoxide pollutant emissions to undergo biennial smog
checks.
2)Authorizes BAR to enforce and administer the smog check program to
ensure the reduction of gaseous emissions of hydrocarbons, carbon
AB 823
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monoxide, and oxides of nitrogen. Directs that a certain
percentage of vehicles deemed to be "high emitters" (currently
about 42% of vehicles subject to the program) to specified
"test-only" stations. Test-only stations are those that test, but
do not repair, vehicles.
3)Requires the periodic evaluation of the smog check program by BAR
and ARB. Establishes the Inspection and Maintenance Review
Committee (IMRC) that provides periodic reviews of the smog check
program to the Legislature.
4)Authorizes a state consumer assistance program offering eligible
motorists to receive up to $450 to fix their vehicle or $1,500 to
retire it. Authorizes BAR to increase its contribution for motor
vehicle repairs if it determines that the expenditure is cost
effective (accordingly, BAR has increased the level to $500).
5)Establishes the maximum income level for eligible motorists to
qualify for the consumer assistance program, for vehicle repairs,
at 200% of the federal poverty level as published quarterly in the
"Federal Register." Authorizes BAR, at its discretion, to
increase the maximum income level up to 225%. However, authorizes
a vehicle owner, regardless of income level, to receive financial
assistance for repair of their vehicle if it failed smog check
inspection at a test-only facility. Establishes no income level
for participation in the voluntary vehicle retirement or
"scrappage" program.
6)Allows the use of specific air district motor vehicle funds to be
used for light-duty vehicle programs such as the voluntary
accelerated vehicle retirement (VAHR) program, that are optional
for local air districts that choose to administer them. The
program is also known as the car scrappage or old vehicle buy back
program that provides monetary or other incentives to vehicle
owners to voluntarily retire their older, more polluting vehicle
that, unlike the BAR program, passes the smog check program.
7)Establishes on January 2010, pursuant to AB 118 (Nunez), Chapter
750, Statutes of 2007, an enhanced fleet modernization program for
the retirement of high polluting vehicles that pass smog check to
be administered by BAR pursuant to guidelines adopted by the ARB.
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AS PASSED BY THE ASSEMBLY , this bill:
1)Increased the amount (from $1,500 to $2,000) that BAR is required
to pay to an owner of a motor vehicle that has failed a motor
vehicle inspection and maintenance program (smog check) test and
chooses to retire the vehicle from operation at a BAR-authorized
dismantler.
2)Authorized BAR to issue transit vouchers in lieu of the $2,000
payment to owners of vehicles who choose to retire their vehicles.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
annual savings, starting in 2010-11, of approximately $4 million
resulting from elimination of financial assistance repair of non-low
income vehicle owners (HPRRA.).
COMMENTS : According to the author of this bill, "BAR's vehicle
repair program currently allows millionaires to receive financial
assistance for their high polluting vehicle. The millionaire has to
pay $100 towards the repair and BAR will pay up to $400. AB 823
closes this loophole. This bill would limit participation in the
repair assistance incentive program to Californian's whose income
level is 225% of the federal poverty level. Only those making less
than $52,000 would be eligible to receive the $500 state assistance
funding and would not have to pay the $100 deductible."
This bill affects a similar provision contained within AB 859 (Jones
of 2009) pertaining to the income level for consumers. That bill
was held in the Assembly Appropriations Committee.
GOVERNOR'S VETO MESSAGE :
"I continue to be supportive of reducing the impact of high
polluting vehicles on the road. However, this bill eliminates
an incentive subsidy provided by the Bureau of Automotive
Repair's Consumer Assistance Program for a particular portion
of the population. The provisions in this bill make more sense
if the State could capture those savings and couple it with
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other incentives for vehicle owners to retire or repair
high-polluting vehicles. I encourage the Legislature to work
on solutions that move in that direction."
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093 FN:
0003248