BILL ANALYSIS SB 1578 Page 1 Date of Hearing: June 26, 2002 ASSEMBLY COMMITTEE ON APPROPRIATIONS Darrell Steinberg, Chair SB 1578 (Johannessen) - As Amended: June 18, 2002 Policy Committee: TransportationVote:15-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill expands the DMV's current program for providing separate registration for specially constructed vehicles (SCVs), as follows: 1)Allows, up to an annual maximum of 500 registrations, a specially constructed vehicle (SCV) that is currently registered as a motor vehicle with the DMV to instead be registered under the special program for SCVs which, among other things, allows the owner more discretion in identifying his or her SCV's model year for purposes of determining whether or not the vehicle is subject to Smog Check testing requirements. 2)Requires the DMV, for applications it receives after the 500 registration annual maximum is met, to assign the same model year as the calendar year in which the application is submitted for purposes of determining Smog Check requirements for the SCV. FISCAL EFFECT Nominal costs to the DMV to expand its current SCV program to accommodate a larger number of SCVs seeking special registration and to process applications in excess of the 500 SCV annual limit. (Motor Vehicle Account.) COMMENTS 1)Rationale . The author believes the SCV program should be expanded. The current DMV program is limited to an annual 500 SB 1578 Page 2 SCVs seeking an initial registration. This bill, by deleting the term "initial", allows the SCVs already registered under the DMV's standard motor vehicle registration process to be registered under the SCV registration program. 2)Background . SB 100 (Johannessen) - Chapter 871, Statutes of 2001 created the SCV program at the DMV. Under this program, which went into effect this year, the owner of an SCV that has yet to be registered has the vehicle inspected by smog inspection station referees to identify a model year in order to determine whether or not the SCV is subject to the state's Smog Check program. The owner can choose whether the inspection is based on the engine model year or the "body style" model year. If the referee cannot determine a model year based on the engine or the body style, the default model year is 1960. Since motor vehicles that are 30 years of age or older are not subject to Smog Check requirements, most SCVs registered under this special program are likely to be exempt from Smog Check. 3)Current Status . The DMV indicates that the SCV program has provided original registrations to only 111 vehicles. By allowing vehicles currently registered under the standard registration policy to be re-registered as SCVs, this bill is likely to substantially increase demand for SCV registration. To the extent these vehicles would no longer to subject to the state's Smog Check program, expanding the SCV program could have a negative impact on the state's ability to achieve air quality goals and to meet federal air quality requirements. Analysis Prepared by : Steve Archibald / APPR. / (916) 319-2081