BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1740
                                                                  Page  1

          Date of Hearing:   April 21, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1740 (Jeffries) - As Amended:  March 25, 2010 

          Policy Committee:                               
          TransportationVote:8-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          As proposed to be amended, this bill increases by 250 vehicles  
          the number of specially constructed vehicles (or kit cars) that  
          can be registered using alternative emission standards less  
          rigid than those applying to other newly manufactured vehicles.  
          Specifically, this bill:

          1)Raises, from 500 to 750, the number of vehicles that can be  
            registered based on smog criteria applicable to the year of  
            the vehicle or engine the kit car is designed to replicate   
            (instead of the year in which the kit car or is manufactured.)  
             

          2)Allows the registered owner of a specially constructed vehicle  
            that is currently registered or incorrectly registered to  
            change the vehicle's registration using the alternative  
            methodology, subject to the overall 750 vehicle limitation.  

           FISCAL EFFECTS
           
          1)Minor and absorbable costs to the Department of Motor Vehicles  
            (special fund).

          2)Minor increase (probably less than $10,000) in costs to Bureau  
            of Automotive Repair related to conduct additional referee  
            smog checks.  

          COMMENTS  

           1)Background  .  A specially constructed vehicle, or kit car, is  
            one which is not built for resale nor constructed by a  








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            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 required, for the first 500 applications each year,  
            that specially trained smog inspection station referees assign  
            the model-year designation based on the model year of the car  
            or engine the specially constructed vehicle most closely  
            replicates - and in cases where such a designation is not  
            possible, to provide a 1960 model-year designation (thereby  
            completely exempting them from emission control requirements  
            and from biennial smog inspections).  

            SB 1578 (Johannessen) Chapter 95, Statutes of 2002, expanded  
            the scope of SB 100 so that the alternative smog standards  
            apply to both registrations and renewals. Kit cars that are  
            registered after the 500-vehicle annual limitation has been  
            met in any given year must meet smog standards for the year in  
            which the vehicle was manufactured or first registered, and is  
            also subject to biennial smog inspections.  

            In 2008 and 2009, the governor signed AB 619 (Emmerson),  
            Chapter 420/2008 and AB 318 (Emmerson), Chapter 235/2009,  
            which created an amnesty program for kit car owners who  
            illegally registered their vehicles to avoid emissions  
            requirements and registration fees and sales taxes.

           2)Rationale  . The bill is intended to expand the number of kit  
            cars that can operate without smog controls in California.  
            Proponents of the bill assert that auto hobbyists contribute  
            widely to the state's economy, through employment of workers  








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            in auto trades, specialty equipment manufacturing,  
            registration fees, and sales taxes. They also argue that the  
            cars are only driven a few miles and that they have an  
            insignificant impact on statewide auto emissions.

           3)Concerns  . Data from the Air Resources Board (ARB) indicates  
            that kit cars that lack emissions controls are substantially  
            dirtier than regular automobiles. The data indicate that a  
            typical kit car in good condition emits 13.15 grams per mile  
            of hydrocarbons (HC) and oxides of nitrogen (NOx). This is  
            nearly 200 times the emissions of a 2005 passenger vehicle  
            (which emits 0.07 grams per mile of HC and NOx.  

           4)Amendments  . The amendments: (a) clarify that the 750 vehicle  
            limit applies to all registrations, including those by owners  
            seeking to change the vehicle's registration by using the  
            alternative method; (b) reinstate current law provisions,  
            removed in previous versions of the bill, which are related to  
            the treatment of vehicles denied the alternative registration  
            procedure (once the state has reached the 750 cap); and (c)  
            make other technical changes.

             Analysis Prepared by  :    Brad Williams / APPR. / (916)  
          319-2081