BILL ANALYSIS SB 198 PROPOSED CONFERENCE REPORT NO. 1 March 14, 1994 SB 198 (Kopp) - As Amended: July 12, 1993 SENATE VOTE 39-0 ( June 3, 1993 ) ASSEMBLY VOTE š75-0 ( August 26, 1993 ) SENATE CONFERENCE VOTE 3-0 ASSEMBLY CONFERENCE VOTE 3-0 Ayes: Kopp, Presley, Russell Ayes: Katz, Hannigan, Andal Original Committee Reference: TRANS. DIGEST Urgency statute. 2/3 vote required. Existing law requires a smog check every two years for motor vehicles in šnonattainment areas, as specified, and requires vehicles failing the smog šcheck to be repaired, up to specified cost limits. As passed by the Senate, this bill made a number of minor revisions to švarious transportation laws. The Assembly amendments made technical changes. The conference committee amendments delete the existing provisions and, šinstead: 1) Create a voluntary program to be administered by the Bureau of š Automotive Repair (BAR) in the Department of Consumer Affairs to provide financial assistance to qualified low-income owners of high polluting motor vehicles, as follows: a) Authorize payment of up to 80 percent of the total cost of repair of high polluters, with a maximum state payment of $450; or b) Authorize payment for total removal of high polluters, with the amount paid by the state based on market value of the vehicle, but not to exceed $800. 2) Provide that financial assistance may only be provided to persons who š have been the registered owners of eligible vehicles for at least two years. The vehicles must also be operational. 3) Prohibit registration or operation in this state of any vehicle once š purchased by the state through the removal program. 4) Create a funding source for the financial assistance program by š authorizing a purchaser of a new vehicle (upon initial registration) to - continued - SB 198 Page 1 SB 198 apply for an exemption from the first biennial smog check in exchange for a payment not to exceed $50, in addition to a smog certificate fee. BAR may also receive other donations to this program. 5) Authorize BAR to allow participation in the financial assistance š program based on a reasonable estimate of future revenues available for the program. FISCAL EFFECT Funds disbursed for the financial assistance program are to be equivalent što the amount contributed. The bill does not create an entitlement. COMMENTS This bill is intended to provide financial assistance to persons most šimpacted by new restrictions on gross polluting vehicles, enacted in SB 629 š(Russell), Chapter 1, Statutes of 1994. That bill also increased the šamount persons have to pay to repair vehicles other than gross polluters šthat fail a smog check. Three bills emerged from conference committee to implement the recent šagreement between California and the U.S. Environmental Protection Agency š(EPA). This bill contains the vehicle repair assistance and buy-back šprogram. SB 521 (Presley) contains the state's commitment to test a športion of vehicles in the enhanced areas at test-only stations. AB 2018 š(Katz) contains the joint pilot demonstration program to be undertaken by šCalifornia and EPA to identify gross polluters, and makes other šmodifications to SB 629 necessary to implement the agreement. Last year, the Governor vetoed SB 100 (Kopp). That bill also contained a šrepair assistance and buy-back program. The administration now supports šthis bill. FN 007380 - continued - SB 198 Page 2