BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 474
                                                                  Page  1

          Date of Hearing:   May 2, 2011

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                     AB 474 (Jones) - As Amended:  March 31, 2011
           
          SUBJECT  :  Vehicles:  smog check: transfer of ownership 
          certifications

           SUMMARY  :  Extends from 90 to 180 days the duration that a 
          certificate of compliance or certificate of noncompliance, 
          related to motor vehicle emission inspections, is valid.  

           EXISTING LAW  :  

          1)Establishes a motor vehicle inspection and maintenance (smog 
            check) program, developed, implemented, and administered by 
            the Department of Consumer Affairs, Bureau of Automotive 
            Repair (BAR), in conjunction with the State Air Resources 
            Board (ARB).  The smog check program provides for the 
            inspection of a motor vehicle, among other circumstances, upon 
            its initial registration, upon transfer of ownership, and for 
            vehicles registered in certain areas of the state, biennially 
            upon renewal of registration.  Authorizes smog check stations 
            to issue certificates of compliance or noncompliance to 
            vehicles which meet the smog check program requirements.  A 
            vehicle not meeting the emission requirements does not receive 
            a compliance certificate.  

          2)Prohibits the issuance of a certificate of compliance to any 
            new motor vehicle or motor vehicle with a new motor vehicle 
            engine that is not certified by ARB.  Requires that, with 
            respect to a new motor vehicle or motor vehicle with a new 
            motor vehicle engine not certified by ARB, a certificate of 
            noncompliance shall be issued.  The certificate of 
            noncompliance is to indicate the basis for nonconformity and 
            the data required to be sent to the ARB.  

          3)Requires the Department of Motor Vehicles (DMV) to require, 
            upon initial registration, and upon transfer of ownership and 
            registration, of a motor vehicle, and upon registration of a 
            motor vehicle previously registered outside this state that is 
            subject to those provisions, a valid certificate of compliance 
            or a certificate of noncompliance, as appropriate, with 
            respect to smog certification.  








                                                                  AB 474
                                                                  Page  2


          4)Requires the registered owner to provide the purchaser with 
            evidence of a valid smog certification, if applicable, when 
            selling a California registered vehicle.  

          5)Exempts from the requirement for a smog certification, a 
            transferred vehicle that is four or less model years old.  For 
            a vehicle that is model year five or six years old, a smog 
            certification is only required for a change of ownership or 
            upon initial registration in California.  

          6)Exempts, among other items, from the requirement to obtain 
            biennially a certificate of compliance or noncompliance, all 
            motor vehicles that have been issued a certificate of 
            compliance or noncompliance or a repair cost waiver upon a 
            change of ownership or initial registration in this state 
            during the preceding six months.  

          7)Requires a licensed motor vehicle dealer to be responsible for 
            having a smog check inspection performed on, and a certificate 
            of compliance or noncompliance issued for, every motor vehicle 
            offered for retail sale.  Indicates that a certificate issued 
            to a licensed motor vehicle dealer is valid for a two-year 
            period.  If the vehicle is sold to a consumer, and not another 
            dealer, the certificate of compliance is valid for 90 days.  

          8)Specifies that a certificate of compliance or noncompliance is 
            valid for 90 days, except in the case of licensed motor 
            vehicle dealers above.  

          9)Requires the periodic evaluation of the smog check program by 
            BAR and ARB.  Establishes the Inspection and Maintenance 
            Review Committee Inspection and Maintenance Review Committee 
            to review the BAR/ARB joint evaluation and to submit a report 
            on the proposed plan to the Legislature.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  In accordance with existing laws and regulations, if 
          a motor vehicle meets vehicle emission and equipment standards 
          as prescribed by BAR and ARB, then a vehicle owner is issued, 
          from a BAR-certified smog station, a certificate of compliance 
          or, in cases where engines have yet to be certified by ARB, a 
          certificate of noncompliance (see Existing Law #2).  Under 
          current law, a certificate of compliance or noncompliance is 








                                                                  AB 474
                                                                  Page  3

          valid for 90 days (with the exception of licensed motor vehicle 
          dealers).  Within this time period, a new vehicle owner can 
          register the vehicle with DMV without the requirement of a new 
          smog check certificate of compliance or noncompliance.  

          This bill would extend the duration of validity of the smog 
          certificate of compliance or noncompliance from 90 days to 180 
          days.  

          It is the author's contention that, "Extending smog 
          certifications by an additional three months will neither incur 
          any cost for the state, create a loss of revenue, nor will it 
          undermine the current emission and air quality standards.  As a 
          case in point, according to information from the U.S. 
          Environmental Protection Agency (EPA) which regulates emissions 
          of air pollutants such as sulfur dioxide (SO2) and nitrogen 
          oxide (NOx), and nationwide air quality for the six air 
          pollutants (known as "principal pollutants"):  

            "Since 1980, emissions of the six principal pollutants 
            have declined significantly, with the greatest drop in 
            lead," the EPA publication Six Principal Pollutants 
            reports.  Further, "for the first half of 2009, SO2 
            emissions dropped 24% versus the first half of 2008.  
            Emissions of NOx fell 5% in May and 11% in June 2009 
            compared against the same months in the previous year."  

          The Legislature is rightly accused of being "out of touch" with 
          the citizens of the state, and passage of AB 474 will provide 
          direct relief from an overly rigid California statute.  Thus, it 
          makes sense, from an economic perspective - but from a consumer 
          perspective as well - to extend the current smog certification 
          from 90 days to 6 months.  A certificate that is valid for a 
          period of six months is certainly reasonable given that the 
          motor vehicle dealers are given certification for a period of 
          two years."  


          Writing in opposition to the bill, the American Lung Association 
          in California indicates that "the potential three-month delay in 
          a new smog check has the potential for three additional months 
          of non-compliance with emission standards, undermining the 
          effectiveness of the smog check program without offering a 
          compelling reason to do so? This bill also has the potential to 
          harm consumers who purchase used vehicles.  Currently, the 








                                                                  AB 474
                                                                  Page  4

          seller of a vehicle is responsible for ensuring that the vehicle 
          passes a smog check in the 90 days prior to the sale.  By 
          doubling the timeframe for smog check validity to 180 days, this 
          bill puts used car buyers at a greater risk for purchasing a 
          vehicle that has fallen out of compliance within a much longer 
          window."  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          None on file

           Opposition 
           
          American Lung Association in California
           

          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093