BILL ANALYSIS
AB 1740
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Date of Hearing: March 22, 2010
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 1740 (Jeffries) - As Introduced: February 8, 2010
SUBJECT : Specially constructed vehicles
SUMMARY : Removes the 500 annual cap on the number of specially
constructed vehicles that may be registered. Specifically, this
bill :
1)Allows an unlimited number of specially constructed vehicles
to be registered by the Department of Motor Vehicles (DMV)
using a specific formula for determining the emission control
standards that apply to those vehicles.
2)Allows the registered owner of a specially constructed vehicle
that is currently registered or incorrectly registered to
change the vehicle's registration by having it inspected by a
repair station authorized to perform referee functions for the
purpose of determining the engine model-year used in the
vehicle or the vehicle model-year, and the appropriate
emission control system application.
3)Repeals provisions that currently apply to specially
constructed vehicles presented to DMV after the existing 500
annual registration limitation for such vehicles has been met.
EXISTING LAW :
1)Defines a specially constructed vehicle as a vehicle that is
built for private use, not for resale, and is not constructed
by a licensed manufacturer or remanufacturer, and requires all
such vehicles to be subject to the emission control system
testing and certification requirements established by the
Department of Consumer Affairs.
2)Requires a passenger vehicle or pickup truck that is a
specially constructed vehicle to be inspected by stations
authorized to perform referee functions for the purposes of
determining the engine model-year used in the vehicle or the
vehicle model-year, and the emission control system
application.
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3)Grants the vehicle owner the option to choose whether the
inspection is based on the engine model-year used in the
vehicle or the vehicle model-year.
4)Requires the referee, in determining the engine model-year, to
compare the engine to engines of the era that the engine most
closely resembles and to assign the 1960 model-year to the
engine in any specially constructed vehicle that does not
sufficiently resemble a previously manufactured engine.
5)Requires the referee, in determining the vehicle model-year,
to compare the vehicle to vehicles of the era that the vehicle
most closely resembles and to assign the 1960 model-year to
any specially constructed vehicle that does not sufficiently
resemble a previously manufactured vehicle.
6)Allows DMV to provide an initial registration to no more than
the first 500 vehicles that meet the specified criteria and
are presented to the department each year for registration.
7)Requires DMV, when considering a registration application for
a specially constructed vehicle that is not among the first
500 applicants, to assign that vehicle the same model-year as
the calendar year in which the application is submitted, for
purposes of determining emissions inspection requirements for
the vehicle.
8)Requires DMV to develop and administer a vehicle registration
amnesty program, from January 1, 2010, until December 31,
2010, for vehicles that have been previously registered or
classified incorrectly and that are subsequently registered
correctly.
9)Prohibits bringing a criminal action for making false
statements relating to a vehicle's value, make, model, or for
failure to register the vehicle, against a current owner who
has been granted amnesty under the amnesty program.
10) Requires the owners of specially constructed vehicles who
apply for amnesty under this program to obtain an emissions
control certificate.
FISCAL EFFECT : Unknown
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COMMENTS : A specially constructed vehicle, or "kit car," is one
which is not built for resale nor constructed by a licensed
manufacturer. Instead, they are typically built at home by
hobbyists and classic car enthusiasts. Kit cars are often
replicas of well-known and expensive classics and are designed
so that anyone with a fair degree of technical skill can build
them to a standard where they can be driven on the public roads.
The Legislature in 2001 enacted SB 100 (Johannessen) Chapter
871, Statutes of 2001, which modified the way a kit car's engine
model-year is determined for smog inspection purposes. Prior to
SB 100, because of the difficulty of determining the precise
engine model-year resulting from the use of unassociated engine
parts and the special nature of these vehicles, DMV designated
them as being from the current model-year. A current-year
designation subjects vehicles to relatively stringent smog
standards, which many kit cars are unable to meet. SB 100
authorized specially trained smog inspection station referees to
assign a 1960 model-year designation (i.e., completely exempt
from emission control requirements and from biennial smog
inspections) for vehicles not closely resembling any particular
model year but limited these designations to the initial
registration of no more than 500 vehicles each year. SB 1578
(Johannessen) Chapter 95, Statutes of 2002, expanded the scope
of SB 100 so that it applied to the first 500 specially
constructed vehicles presented to DMV each year, regardless of
whether they were applying for initial registration or for
renewal. Kit cars that are registered after the 500-vehicle
annual limitation has already been met in any given year must
meet new car smog standards for that particular year and will
also be subject to biennial smog inspections.
DMV reports that the 500-registration limit for kit cars was not
reached in 2009 until some time in December. This year,
however, about 340 kit car registrations were processed through
early March. Bloggers in the hot rodding community have noted
that, "Now with brand new Mustang and Camaro steel tubs
available (and possibly more makes in the works), the
competition for those few pardons is getting stiffer with no end
in sight."
Proponents of this bill argue that this annual limit of 500 for
kit car registrations under SB 100 provisions is unfair and is
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an impediment to economic activity. They contend that "the
sport of hot rodding has created and maintained hundreds of
thousands of jobs" in California, and that "our cars are better
running and cleaner than most new vehicles." They also point
out that, "These vehicles are primarily show vehicles and are
only driven a few times a month going to and from car shows and
parades." They therefore believe that the limited usage of kit
cars translates into a minimal impact on statewide vehicular
emission totals.
Data from the Air Resources Board (ARB), on the other hand,
indicates that kit cars that lack emission controls are
substantially dirtier than vehicles containing the controls
required on a manufactured vehicle. A typical kit car in good
condition emits 13.15 grams per mile of hydrocarbons (HC) and
oxides of nitrogen (NOx) as compared with a 2005 passenger
vehicle that emits 0.07 grams per mile of HC and NOx. This is
nearly 200 times more pollution per mile. Consequently, a small
number of uncontrolled kit cars can generate a substantial
amount of excess emissions even if driven less than typical
passenger vehicles.
The California Pollution Control Officers Association (CAPCOA)
further contends that the bill would "allow kit car owners who
have fraudulently tampered with their emissions controls and
cheated the state out of sales tax and registration fees to not
repay what they owe, and legally operate their polluting
vehicles." In 2008 and 2009, the Legislature passed and the
Governor signed AB 619 and AB 318, both authored by
Assemblymember Bill Emmerson. These create an amnesty program
for kit car owners that illegally registered their vehicles to
avoid emissions requirements and registration fees and sales
taxes. This amnesty program requires these owners to clean
their vehicles and pay all fees owed, and in exchange grants
amnesty from prosecution. AB 1740 eliminates all environmental
and financial requirements of this amnesty program, depriving
California of significant funds. According to the Department of
Justice, which has led the investigation of kit car fraud, over
70,000 vehicles could take advantage of the loophole this new
bill would offer, depriving the state of over $35 million
annually in fees owed."
REGISTERED SUPPORT / OPPOSITION :
Support
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Association of California Car Clubs (ACCC)
L. A. Roadsters
Over the Hill Gang, San Bernardino
Over the Hill Gang, San Diego
The Market Connection
Saddleback So. Rods Cal.
South Bay Cruisers
Approximately 986 letters from individuals
Approximately 96 phone calls from individuals
Opposition
American Lung Association, in California
California Air Pollution Control Officers Association
Analysis Prepared by : Howard Posner / TRANS. / (916) 319-2093