BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
435 (Pavley)
Hearing Date: 4/27/09 Amended: 4/13/09
Consultant: Mark McKenzie Policy Vote: T.&H. 7-3
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BILL SUMMARY: SB 435 would, commencing January 1, 2012,
require the Bureau of Automotive Repair (BAR) to include
specified motorcycles in the biennial smog check program.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Smog check expansion ($1,017) Special*
(revenue gains) full-year revenues of over $2,000
annually
beginning in 2012-13 (see staff comments)
BAR program costs
-Administration $200 $400-$500 Special*
-Consumer Assistance Pr.
$500Special**
annual repair/retirement costs of about
$1,000 beginning in 2012-13 (see staff
comments)
DMV administration $430 $370
Special***
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* Vehicle Inspection and Repair Fund (VIRF)
** High Polluter Repair or Removal Account (HPRRA)
*** Motor Vehicle Account
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Existing law requires motor vehicles, with specified exceptions,
to undergo a biennial smog inspection, administered by BAR, to
measure motor vehicle-related pollutants. As a condition of
initial registration, upon change of ownership, and renewal of
vehicle registration, the vehicle owner must submit to the
Department of Motor Vehicles (DMV) a valid certificate of
compliance indicating that the vehicle has passed its smog
inspection. Existing law exempts motorcycles from smog check
requirements until BAR implements test procedures applicable to
motorcycles. DMV defines a motorcycle as any vehicle with no
more than three wheels, weighing 1500 pounds or less, with an
engine displacement of over 150 cubic centimeters (cc).
SB 435 would, commencing January 1, 2012, require BAR to include
model-year 2000 and newer Class III motorcycles (280 cc or
greater) in the biennial smog check program. The bill would
also require BAR, in consultation with the California Air
Resources Board (ARB), to develop regulations by July 2, 2011
for incorporating motorcycles into the smog check program.
Motorcycles subject to inspection shall be tested using
procedures determined to be appropriate by BAR in consultation
with ARB.
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SB 435 (Pavley)
As of March 31, 2009 there were approximately 575,000 registered
motorcycles with a model year of 2000 or newer. DMV does not
have the ability to determine how many of these are classified
Class III motorcycles because their records do not currently
track engine size. This may result in implementation challenges
for DMV to identify owners of Class III motorcycles for
notification of the new smog check inspection requirements.
The ARB estimates that as of October of 2008 there were
approximately 493,000 motorcycles that would be subject to the
requirements of this bill. Since an inspection would occur
every two years, SB 435 would integrate an additional 246,500
motorcycles into the smog check program each year. Based on an
$8.25 certificate fee for each inspection, this bill would
generate $2,033,625 in revenue annually to the Vehicle
Inspection and Repair Fund beginning January 1, 2012. BAR would
incur one-time costs for development and adoption of regulations
and procedures for smog check inspection of motorcycles,
equipment for the state's 36 referee centers, and ongoing
staffing costs for administration of the program. At the time
of this analysis, BAR had not yet completed an assessment of the
costs and revenues associated with this bill. Staff estimates
BAR's administrative costs to be approximately $200,000 in
2010-11, with ongoing costs in the range of $400,000 to $500,000
annually. Assuming motorcycles would be eligible for the
Consumer Assistance Program (CAP), there would also be increased
costs to the repair assistance and vehicle retirement options of
the CAP. These costs are not currently available, but would
depend upon the number of vehicles that fail inspections, the
number of motorcycle owners who qualify for participation in
CAP, average vehicle repair or retirement costs, and BAR's
administrative overhead. Staff estimates the overall CAP costs
to be in the range of $1 million annually beginning in 2012.
DMV would incur one-time programming costs of approximately
$430,000 to alter the vehicle registration process to track
motorcyles for smog check notification. Ongoing DMV
administrative costs would be in the range of $370,000 if
246,500 vehicles are subject to inspection every year. DMV
costs are typically reimbursed by BAR from smog certificate fees
(Vehicle Inspection and Repair Fund) pursuant to a Memorandum of
Understanding.
SB 435 would require ARB to work with BAR in the adoption of
regulations to implement the inclusion of motorcycles into the
smog check program, and in the determination of appropriate
procedures for inspection of motorcycles. ARB estimates that
costs to consult with BAR would be minor and absorbable.