Let me share with you why I am interested.
1. Why is there a problem?
This of course relates to using out-of-state title services to register what should be a special constructed vehicle (SPCN) as a specific model year vehicle. Based upon my interviews with car owners most of these custom-car owners were under the impression that out-of-state titles are "the way it's done" in California. (See
http://www.ocregister.com/ocr/2004/.../article_281652 ) This mindset was not helped by the lack of published guidelines showing what the process was for dealing with the emission issues for a SPCN.
2. AB 619
To deal with the estimated 70,000 vehicles that have fraudulent registration and to recover an estimated $230,000,000 in loss tax revenue there is proposed amnesty legislation to allow the correction of registration information, to bring these cars back into compliance with emission requirements, and to recover lost fees, taxes and penalties.
At the time amnesty was proposed we were informed by BAR that emission tests for SPCN's were either based upon the year of the engine or upon a SB 100 exception (500 per year). Although we knew that not all fraudulently registered SPCN could meet these requirements, we felt that the standards were reasonable enough that we would get the majority of these vehicles to self correct.
3. New BAR rules
We received further clarification on California emission standards as it relates to SPCN that do not have a SB100 exemption. BAR's will be shortly begin to comply to with existing law which requires SPCN to meet the emission requirements of the year that they are first registered in. If you do not have a SB100 exemption and your vehicle is first registered in 2007, you will be required to meet 2007 emission standards.
BAR's previous policy of testing to the year the engine replicates was at odds with Vehicle Code § 4750.1 (effective Jan. 1, 2003). This section states in part:
"the vehicle shall be assigned the same model-year as the calendar year in which the application is submitted, for purposes of determining emissions control equipment and inspection requirements for the vehicle."
With reference to those vehicles that were passed by BAR under the old standard, it appears that BAR will "grandfather" those vehicles in. So the standard that you had to pass to get your vehicle registered will continue to apply to that vehicle.
BAR will begin to implement that standards outlined in Vehicle Code § 4750.1 once DMV begins assigning a "model-year" to SPCN. DMV is aware of this requirement.
The net effect is that SPCN registrations will be limited to 500 vehicles per year (hot rods / kit cars). I do not anticipate any SPCN vehicles meeting 2007 or latter emission requirements.
4. Impact of new BAR rules
BAR reports having tested over 400 SPCN SB 100 exempt vehicles in the last year. They also tested over 300 SPCN that were outside of the SB100 program. On our end we are still seeing the fraudulent registration of vehicle via false title documents, as well as the "legal" registration of SPCN using valid out-of-state title. I would estimate that these account for at least 200 vehicles per year. Total SPCN currently introduced into California per year would be around 1,000. This number will increase.
With the new 500 limit we anticipate a number of registration schemes to be used to allow these vehicles to be driven in California.
5. A legal registration scheme - foreign certificates of title
Presently there are a lot of "ifs" in this response. Both BAR and DMV will have the final word on how this will be interpreted.
Numerous states have replica registration laws that allow SPCN to be titled per the year the body replicates. A 2007 SPCN Cobra kit car would be titled as a 1965 Ford. These states place mileage restriction or other emission restriction on the vehicle.
Assuming a California resident legally registers their SPCN in one of these states, they would be granted a title document describing their vehicle as a 1965 Ford. Vehicle Code § 4304 requires DMV to grant "full faith and credit to the currently valid certificate of title describing the vehicle." Thus it would appear that DMV is required to register this vehicle as a 1965 Ford.
The next question is what impact, if any, does this have on SPCN emission requirements? One view point is that since Vehicle Code § 4750.1 requires that emission testing be done by a "model year" that DMV assigns, and in that DMV is required to accept the vehicle as a 1965, that emission standards will be set at 1965.
Regardless of ones stance on emission requirements for SPCN vehicles, Vehicle Code § 4305 raises some very unique and interesting problems by its possible unintended consequences.
6. Dealing with this mess.
Currently AB 619 has been placed on suspense in light of the new BAR rules. Amnesty will not be an effective tool if there is no perception that the owner may legally drive the vehicle.
Vehicle Code § 4304 creates a potential legal loop hole that will allow SPCN to be brought into California outside State emission requirements. Based upon registration issues currently present in the RV industry, I anticipate registration services to provide vehicle delivery and appropriate title documents in SPCN friendly states. These documents would then allow the vehicle to be registered in California outside of existing emission requirements. I would also anticipate that the industry that currently supports SPCN construction to relocate to these states.
To encourage self correction and to maintain current California emission requirements, SPCN emission standards, including SB100 exemptions should be re-examined. Any proposed changed to SPCN emission testing must be tied to closing the Vehicle Code § 4304 title loophole.
Which leads me to my question, what is DMV doing with out-of-state SPCN emissions? All of this has been in play, it is just figuring out what is happening at ground level that is challenging.
Hybrid Mode
