BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 165
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 165 (Lowenthal) - As Amended:  June 22, 2010 

          Policy Committee:                              
          TransportationVote:14-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This is a largely technical cleanup bill that recasts code  
          provisions dealing with the registration of specially  
          constructed vehicles.  Specifically, the bill:  

          1)Switches from the Vehicle Code to the Health and Safety Code,  
            provisions describing the responsibilities of the Bureau of  
            Automotive Repair (BAR) with regard to the registration of  
            specially constructed vehicles.  

          2)Switches from the Health and Safety Code to the Vehicle Code,  
            provisions related to the responsibilities of the Department  
            of Motor Vehicles (DMV) with regard to the registration of  
            specially constructed vehicles.  

          3)Clarifies that specially constructed vehicles that are  
            currently registered may apply to register the vehicle using a  
            different model year, subject to the existing 500 vehicle  
            limitation on specially determined model years.  

           FISCAL EFFECT

           No significant impact on state costs or revenues.
           
          COMMENTS  

           1)Purpose  . The registration of specially constructed vehicles  
            (typically "kit cars") and, in particular, their potential  
            exemption from emission control requirements, has been the  
            subject of several pieces of legislation and significant  
            controversy in recent years.  This bill, however, is simply a  








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            technical cleanup measure, the primary effect of which is to  
            place the statutory responsibilities of BAR and DMV for this  
            program into the appropriate state codes (the Health and  
            Safety Code for BAR and the Vehicle Code for DMV).  The bill  
            also makes clear, consistent with the intent of current law,  
            that specially constructed vehicles that are currently  
            registered may apply to register the vehicle using a different  
            model year determined in subsequent years.

           2)Background  .  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 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.  








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           3)Related legislation  .  AB 1740 (Jeffries) would have increased  
            to 750 the annual number of kit cars that would be eligible  
            for registration using a specific formula for determining  
            their model year.  That bill failed passage in the Senate  
            Transportation and Housing Committee.


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