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