BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2289
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          Date of Hearing:   April 16, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                  AB 2289 (Jefferies) - As Amended:  April 19, 2012
           
          SUBJECT  :  Vehicles: specially constructed passenger vehicles: 
          inspection

           SUMMARY  :  Revises the procedures for registering specially 
          constructed vehicles and pick-ups (SCVs).  Specifically,  this 
          bill  :  

          1)Requires the Department of Motor Vehicles (DMV) to hold 
            applications for SCV registrations for consideration the 
            subsequent year if the maximum allowable slots for SCV 
            registration (500) are already taken in a current year.  

          2)Requires DMV to establish, maintain, and make available to the 
            public on its Internet Web site, a current listing of SCV 
            applicants in the order the applications were received for 
            each calendar year.

          3)Requires DMV to adopt by regulation, a secure process to 
            establish the list of applicants that protects an applicant's 
            privacy yet enables them to determine his or her position on 
            the list of applicants.

          4)Requires DMV to consider all applications in excess of the 500 
            SCV registration limit in the subsequent calendar year, in the 
            order in which the applications were received.

          5)Requires DMV to reject an SCV application that is if the 
            applicant already has another application on file.

          6)Makes related, conforming amendments.

           EXISTING LAW  :  

          1)Defines an SCV as a vehicle that is built for private use (not 
            for resale) from a kit or a combination of new and/or used 
            parts.  

          2)Requires under federal law that states that do not meet the 
            specified health-based federal air quality standards to 








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            implement vehicle inspection and maintenance programs.  

          3)Requires that the Bureau of Automotive Repair (BAR) inspect 
            SCVs to establish the model year of the vehicle or engine for 
            the purpose of determining emission control (smog check) 
            requirements.  

          4)Prohibits DMV from registering more than 500 SCVs per calendar 
            year.  

          5)Requires DMV to deny an SCV registration application and 
            assign the model year in which the application was submitted 
            for all SCV registration applications received over and above 
            the 500 SCV registration limit.  

          6)Authorizes an SCV applicant to resubmit an application to DMV 
            in a subsequent year to have the model year for the SCV 
            reassigned if their application was denied by DMV.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  

           Specially Constructed Vehicles  :  An SCV is a vehicle that is 
          built for private use that is constructed from either a kit or 
          from a combination of new and/or used parts.  SCVs are typically 
          built to replicate historic or classic cars of a specific 
          vehicle model year.  Because these vehicles are constructed 
          using older vehicle parts, they often do not meet more recent 
          emissions requirements.  

          Federal law requires states that do not meet the specified 
          health-based federal air quality standards to implement vehicle 
          inspection and maintenance programs.  The vehicle inspection 
          program in California is known as Smog Check and generally 
          requires vehicles, with specified exceptions, to obtain a smog 
          inspection certificate or certificate of non-compliance 
          biennially, upon change-of-ownership, or upon the registration 
          of a vehicle previously registered in another state.  In 1997, 
          the Legislature enacted Senate Bill 42 (Kopp), Chapter 801, 
          which exempted from the biennial and change-of-ownership vehicle 
          inspection requirements vehicles manufactured before the 1974 
          model-year, and, beginning in 2003, all 30-year old vehicles on 
          a rolling basis.  









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          Since SCVs do not have a manufacture-assigned model year, SB 100 
          (Johannessen), Chapter 871, Statutes of 2001, created guidelines 
          for the emissions inspection for SCVs, allowing the vehicles to 
          be held to the standards of the model-year the vehicles 
          represent rather than the more current model year which have 
          more sophisticated engines.  SB 100 set up a system whereby SCVs 
          are assigned a model year based on an inspection performed by a 
          BAR Referee.  

          SB 100 also authorized DMV to register no more 500 SCV with an 
          earlier BAR-assigned model year annually.  The 500 per year 
          limit was established to prevent vehicle owners from altering 
          vehicles, claiming them to SCVs, and therefore "skirting" Smog 
          Check program requirements.  Upon signing SB 100, Governor Davis 
          issued a signing message indicating that he was directing DMV to 
          implement the provisions of the bill within DMV's existing 
          resources, possibly explaining the somewhat manual and 
          decentralized system that is currently used for registering 
          SCVs.  This system of registration is used for only a small 
          number of registrations annually compared to the number of 
          regular vehicle registrations that are processed by DMV.  

          To obtain an SCV registration for an earlier model-year, 
          applications for registration are submitted to DMV field 
          offices.  When an application is submitted, DMV field office 
          contacts DMV headquarters to verify if the 500 SCV registration 
          limit has been met.  If it has been met, then the application is 
          denied and returned to the applicant. If the limit has not been 
          met, then the application is accepted by DMV field office.  The 
          application is reviewed and if it is complete, a Certificate of 
          Sequence is issued to the applicant by DMV headquarters within 
          7-10 working days.  Once the yearly allotment of 500 
          certificates is issued, applicants must wait until the following 
          year to reapply.  There is currently no limit to the number of 
          applications that can be submitted by an applicant.  

          According to DMV, the 500 SCV registration limit has been met in 
          the 5 of the last 10 years.  In the last 3 years (2009-2011) 
          less than 500 certificates were issued therefore, no applicants 
          were denied a SCV registration between 2009 and 2011, DMV 
          reports that a total of 132 SCV registrations have been issued 
          for 2012 leaving 368 slots remaining in the calendar year.  
          Reports received by the author's office, however, seem to 
          indicate that applicants have been turned away within the last 
          several years despite that the 500 registration has not been 








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          met.  

           Discussion  :  According to the author, owners of SCVs are having 
          a hard time getting their vehicles registered.  There appears to 
          be difficulty not in the limitation on the number of 
          registrations that are made available annually by DMV, but 
          rather in the system established for processing these limited 
          number of applications.  The author has cited instances where 
          SCV owners have been told by DMV that all available 
          registrations have been issued, only to learn later that there 
          were, in fact, slots available.  This is evidenced by claims 
          relayed to the author by SCV owners that they have been turned 
          away when applying for an SCV registration despite the fact that 
          in those same years DMV has confirmed that the registration 
          limit was not met.  

          Despite the fact that SCVs, by definition, are built for private 
          use and not for resale, that author claims that dealers are 
          using up the majority of available registration "slots," 
          effectively preventing private vehicle owners from obtaining SCV 
          registration.  The author also claims that SCV owners are 
          frustrated by the fact that when the 500 SCV registration limit 
          is met, their applications are returned, rather than placed on a 
          waiting list for processing in the subsequent year, placing a 
          burden on the applicant to return to DMV and resubmit the 
          application at a later date.  

          To address these concerns, AB 2289 would require DMV to 
          establish, maintain, and make available on its Internet website, 
          a list of applicants for SCVs registration.  It would also 
          require that the DMV roll applications over from one year to the 
          next, in the order they are received, rather than deny and 
          return applications.  The bill would allow DMV to grant only one 
          SCV registration per applicant per year and would prohibit DMV 
          from accepting more than one application per applicant per year. 
           

          According to the author, this bill would provide a measure of 
          transparency to the SCV registration process by allowing 
          applicants to easily determine where they are on the list and 
          whether or not, in fact, "slots" remain available.   
          Additionally, the author hopes to prevent the situations where 
          dealers and manufacturers submit multiple applications for SCV 
          registrations, effectively taking up slots that would otherwise 
          be used by hobbyists and enthusiasts.  








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          It appears that there is a good deal of misinformation regarding 
          availability of SCV registration in any given year. Given that 
          the process used by DMV is somewhat decentralized and manual, it 
          is likely that there may be opportunities for confusion.  This 
          bill would require DMV to make the SCV registration list 
          available to the public and show the number of registrations 
          that have been issued in a given calendar year.  It is likely 
          that the revised system would be beneficial to both DMV field 
          office personnel and applicants.  The bill also addresses 
          concerns by SCV registration applicants that "slots" are being 
          taken up by individuals who register multiple vehicles.  To 
          address this concern, the bill requires DMV to reject 
          applications if the applicant already has another pending 
          application.

           Related legislation  :  SB 100 (Johannessen) Chapter 871, Statutes 
          of 2001 established a procedure for determining emission control 
          standards for certain specialized vehicles.  

          SB 42 (Kopp), Chapter 801, exempted from the biennial and 
          change-of-ownership vehicle inspection requirements vehicles 
          manufactured before the 1974 model year, and beginning in 2003, 
          all 30-year old vehicles on a rolling basis.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           Association of California Car Clubs 
          Capitol Auto Club "Thunderbolts" of Sacramento
          Inland Empire Car Club Council 
          Over the Hill Gang Car Club
          The Faithful
          14 Individuals

           Opposition 
           
          None received
           

          Analysis Prepared by  :   Victoria Alvarez / TRANS. / (916) 319- 
          2093 











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