CA: out of state SPCN and emission testing

[Morgester]

Now that we have amnesity on the table we need to clean up the out-of-state SPCN registrations loop hole. With that in mind SB 811 -SPCN Emission Equality Act has been proposed.

The below legislation will treat all California SPCN vehicle equally for emission and inspection purposes regardless of where they were first registered. For those rushing for out-of-state title I should also note that California Department of Motor Vehicles is still exploring whether Vehicle Code § 4304 requirement can be bypassed for emission testing purposes for SPCN. This legislation is designed to give a definitive answer to that question.

The public policy behind this legislation is that it would reduce emissions by placing these vehicles within the current emission frame work for SPCN. It would also protect the California kit car industry from unfair competition caused by out of state titles.

The following is a break down of the legislation:

A. Existing Law

Vehicle Code § 4304. Effect of foreign certificates of title

Upon application for registration of a vehicle previously registered outside this State, the department shall grant full faith and credit to the currently valid certificate of title describing the vehicle, the ownership thereof, and any liens thereon, issued by the state in which the vehicle was last registered, except that the laws of the state shall provide for the notation upon the certificate of title of any and all liens and encumbrances other than those dependent upon possession.

B. Problem

In California a replica vehicle, kit car or hot rod is considered a specially constructed vehicles (SPCN). SPCN must meet the emission requirements for the year that they were produced.

Numerous states have replica registration laws that allow SPCN to be assigned a certificate of title bearing the same model year designation as the production vehicle they most closely resemble. The states now include Arkansas, Colorado, Florida, Hawaii, Illinois, Maine, Missouri, Montana, Nevada, Rhode Island, Virginia and Washington.

Assuming a California resident legally registers their 1965 replica SPCN that was built in 2008 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. 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.

Currently, at the DMV field office level, it appears the above view point is being implemented.. A California SPCN owner stated “it is clear to me that the CA DMV is taking legal out-of-state "1965 Ford" titles, verifying the VIN, and issuing legal "1965 Ford" CA titles, and using "1965" as the model year for emission requirements (ie: 1965 = smog exempt)” on SPCN.

A SPCN owner from San Jose with out-of-state title reported “I was at my local DMV office to begin the SB100 process for my car. Again, I caused quite a stir and - after waiting 45 minutes for them to complete their caucus - I was told my car doesn't even qualify for, nor does it require an SB100 # as it titled as a 1965 Ford.”

Vehicle Code § 4304 is allowing SPCN that are initially registered out-of-state to avoid California emission rules that would apply to a similar vehicle that is built in California.

The SPCN industry is aware of this loop hole and we are seeing a legal emission avoidance scheme develop where California residents are purchasing SPCN out-of-state and returning them to California to avoid emission requirements. Based upon prior investigations we estimate that as this become better known we will have between 3,000 to 5,000 SPCN vehicle brought into California that will not be required to comply with our vehicle emission requirements.

The impact to California is that we will have an increase in emissions by allowing this loop hole to continue. We will also destroy the California based kit car industry. Californians will no longer do "kit builds" within California because they would have to comply with existing emission rules. Rather they will take delivery out of state and use out of state registration to bypass California emission requirements. Other then in state repairs, the California kit car industry will relocate to registration friendly states whose title can be used to bypass California emission standards.

C. Legislation

BILL NUMBER: SB 811 INTRODUCED
BILL TEXT


INTRODUCED BY Senator DeSaulnier

FEBRUARY 27, 2009

An act to add Section 4750.2 to the Vehicle Code, relating to
vehicles.



LEGISLATIVE COUNSEL'S DIGEST


SB 811, as introduced, DeSaulnier. Vehicles: specially constructed
vehicles.

Existing law, upon application for registration of a vehicle
previously registered outside this state, requires the Department of
Motor Vehicles to grant full faith and credit to the currently valid
certificate of title describing the vehicle, the ownership thereof,
and the liens thereon, issued by the state in which the vehicle was
last registered. Existing law also requires the department to require
upon registration of a motor vehicle, previously registered outside
this state, a valid certificate of compliance, or a certificate of
noncompliance, with California's emission regulations. Existing law
additionally requires specially constructed vehicles, depending on
various criteria, to be subject to different emission inspection and
control requirements based on the engine model year, the vehicle
model year, or the calendar year in which the application for vehicle
registration is submitted.

This bill would require specially constructed vehicles, as
defined, that were previously registered outside this state to be
subject to emission control and inspection requirements applicable to
the same calendar year that the vehicle was originally constructed
as a specially constructed vehicle.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 4750.2 is added to the Vehicle Code, to read:

4750.2. Notwithstanding Section 4304 or 4750.1, if the
application for registration of a vehicle previously registered
outside this state is for a specially constructed vehicle, as defined
in Section 580, the vehicle is subject to emission control and
inspection requirements applicable to the same calendar year that the
vehicle was originally constructed as a specially constructed
vehicle, unless otherwise modified by Section 44017.4 of the Health
and Safety Code.