CA: Resale of SB 100 and other new leg.

[Morgester]

Thread to discuss recent e-bay auction of SB 100 chit and new legislation impacting kit cars

[mrmustang]

So what say you Robert, is it legal to resell an SB100 number and it's associated paperwork and did a certain someone named Simon speak with you about it live yesterday afternoon your time? Inquiring forum members would like to know.

Bill S.

[thudmaster]

I for one certainly hope its not legit......

[Burgs]

WTF Mr. Morg,...

You're the one with all the answers,...

[Morgester]

I recently became aware of a California SB 100 chit being sold on Ebay. I have a few observations based upon conversations with DMV:

1. A SB 100 exemption is tied to a specific vehicle and may not be transferred to a different vehicle.

2. The SB 100 exemption will follow the vehicle it is assigned to upon resale. Note that you cannot build a specially constructed vehicle for the purpose of resale.

3. The Ebay sale has the trappings of an unlawful sale in that the sale does not include the vehicle.

4. DMV is investigating this sale and ramifications may include canceling the SB 100 chit at issue.

5. If you purchased this as presented, you could never use it.

I am sure that this comes as no surprise for the folks on this forum

[thudmaster]

Thank you sir.

[Morgester]

I am aware that we have a lot of folks still out here in California with "less then perfect title." (See titles unlimited) One of our projects was to find someway to bring these folks back into voluntary compliance which would require them to fix the fraudulent registration that is currently assigned to the vehicle. Problem with voluntary compliance is that you would be admitting that you had committed perjury on your vehicle registration application. To this end SEMA has been working with the California legislature to move forward on a vehicle registration amnesty program. This program would enable folks to fix their registration without the worry of criminal prosecution. There is a very good chance this will move forward this year. As specific information becomes available I will post it to this thread.

[pgermond]

Robert Morgester,

Thank you for the post. Hopefully OPNYDR, Simon, or whoever that punk is will be dealt with appropriately.

Thanks again.

[mr bruce]

Please clarify point number 2-" you cannot build a specially constructed vehicle for the purpose of resale". And yet you say the SB100 goes with the vehicle upon resale ???????

[Morgester]

DMV is pragmatic in its approach:

A special constructed vehicle (SCV) can only be built for personal use and may not be built for resale. If you build it with the intention of selling it you are now a vehicle manufacture and subject to a variety of federal and state laws.

The SCV designation was designed for the hobbyist who would be driving what they built.

DMV apparently recognizes that even the hobbyist may wish to transfer title in the vehicle at some point due to circumstances that were not in existence at the time the vehicle was built. As such DMV does allow the sale of these vehicles.

The key is that if your intent is to build it to sell it - you cannot use SCV or SB 100.

So beware of turn key ready kits being sold by a single manufacturer - you can never register them in the State of California. I would recommend getting your parts from at least two different sources. Of course consult with DMV - in the end they are the ones that issue the registration.

[bdeutsch]

Read with great interest yesterday's threads regarding SB100 sale on eBay.

One of the responses to this thread brought up Boyd Coddington and Foose. Given that these companies likely do not know at the beginning of the year how many cars they are going to build for California sale, is anybody aware of the route these folks take towards registering cars they construct?

I remember reading some time ago problems that Boyd Coddington's company got into with bogus CA DMV registrations, but do not recall anything that conveyed the approved method, beyond SB100, for specialty constructors to ply their trade legally in the great state of California...

As always, appreciate your input.

Bob

[Morgester]

Remember you can build anything you want as long as you don't drive it on the street.

If you restore a vehicle, it retains the original title

In the Titles Unlimited Investigation we had individuals who contracted with "company A" to build a rolling chasse and "company B" to build the engine. In those cases DMV treated it as a SCV.

We also had a vehicle that was built to the customer specification by a single builder - DMV disallowed registration -

[mrmustang]

Robert,

Can you cite any case law for these incidents, perhaps with links to the online version of the transcripts so we can see just what was and what was not a line to be crossed?

Bill S.

[Mark Husar]

Would you be so kind as to shed some light on the SB 1578 that was used to register automobiles such as our cobra's back in the early 2000's?
Of interest would be the resale of the car at a future date.
Thank you