BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 165
                                                                  Page  1

          SENATE THIRD READING
          SB 165 (Alan Lowenthal)
          As Amended  August 20, 2010
          Majority vote

          SENATE VOTE:  Vote not relevant
           
          TRANSPORTATION      14-0        APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonnie Lowenthal,         |Ayes:|Fuentes, Conway,          |
          |     |Jeffries,                 |     |Bradford,                 |
          |     |Bill Berryhill,           |     |Charles Calderon, Coto,   |
          |     |Blumenfield, Buchanan,    |     |Davis,                    |
          |     |Eng, Furutani, Galgiani,  |     |De Leon, Gatto, Hall,     |
          |     |Hayashi, Miller, Niello,  |     |Harkey, Miller, Nielsen,  |
          |     |Norby, Portantino,        |     |Norby, Skinner, Solorio,  |
          |     |Solorio                   |     |Torlakson, Torrico        |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Recasts code provisions dealing with the registration  
          of specially constructed vehicles.  Specifically,  this bill  :  

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

          2)Switches from the Health and Safety Code to the Vehicle Code,  
            the responsibilities of the Department of Motor Vehicles (DMV)  
            in 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 determined in subsequent years.  

          4)Includes language to assure that this bill does not  
            inadvertently chapter out provisions included in AB 2461  
            (Emmerson).  

           EXISTING LAW  :

          1)Defines a specially constructed vehicle as a vehicle that is  
            built for private use, not for resale, and is not constructed  








                                                                 SB 165
                                                                  Page  2

            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 BAR.  

          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.  

          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  








                                                                  SB 165
                                                                  Page  3

            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  :  According to the Assembly Appropriations  
          Committee analysis, there is no significant impact on state  
          costs or revenues.  
           
           COMMENTS  :  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 a good deal of  
          controversy in recent years.  This bill, however, is simply a  
          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.  

          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  :   Howard Posner / TRANS. / (916) 319-2093 


                                                                FN: 0006406