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.

[tcrist]

Morgester,
Any idea on how Ca would know what year the out of state SPCN vehicle was built.

Terry

[Morgester]

Some out-of-state registrations will list the build year.

Otherwise they would use the first year of registration (1st original out-of-state reg.) absent other documentation showing earlier build.

[rokndad]

Robert,

Thanks for taking the time to inform us on our forums of the changes to the law in addition to the heads up like this on proposed changes. Many of your previous posts helped me make my decision to get an out of state SPCN and go through the SB 100 process in California. And pay those FEES!!!!!!! Yikes. Glad it's over.

[mrmustang]

Robert,

I believe part of the problem is that it is a FEDERAL OFFENSE to tamper with a legally issued out of state title. California laws cannot supercede FEDERAL LAW. If you believe this to be untrue, then with that same belief you risk the loss of Federal dollars that flow into your state for complying with FEDERAL laws. No matter how you word it, no matter how you attempt to enact new laws to "get your way", there is no circumventing the FEDERAL statute.

Now, with that said, if a legal full time resident of your state attempts to title a vehicle in one of the states above, then yes, you can legally intercept said title/vehicle. If however a legal resident of your state purchases a legally titled used vehicle from out of state and brings it into your state, then you and your state government must comply with the FEDERAL statute, on this it is clearly black and white. You need to ask yourself and your fellow California based lawmakers if they are willing to go to court for stopping the legal transfer of goods from one state to another. If so, would the backlash once it becomes known to other states in which you export goods and services become enough to bankrupt your state? Sounds a bit extreme and overboard, but it does make you sit back and think about it from the other side of the equation.


Here is wishing you well.


Sincerely,

Bill S.

[Morgester]

There are other issues at play. The key is that the vehicle is not a 1965 no matter what the documentation from the other state says. As such, if you choose to register it in a new jurisdiction (California) we have the choice to treat it as we would treat any other vehicle in our state.

Each state has its own unique rules (including taxes, guns, fireworks, prostitution, drugs, and kit cars). A sister state does not have to honor them if you choose to take up residence. That is why they are called laboratories of democracy.

[mrmustang]

Ah yes, but when it comes to automobiles, the laws of the Federal government take precedence. As such it is a FEDERAL OFFENSE to tamper with a legally issued (this is the key words here) title and/or state issued Vehicle Identification Number. Even you have to agree that this is true, right?


Again here is wishing you well.


Sincerely,

Bill S.

[Morgester]

[quote=mrmustang;926201]Ah yes, but when it comes to automobiles, the laws of the Federal government take precedence. As such it is a FEDERAL OFFENSE to tamper with a legally issued (this is the key words here) title and/or state issued Vehicle Identification Number. Even you have to agree that this is true, right?


There is no federally issued VIN on these vehicles nor are they manufactured per DOT specifications (air bags anyone?) The only reason they are on the road is due to state law. In California it is the special manufactured rule that allows them in.

I believe that there may be an issue under federal law if these can even be built.

[marcalan]

When I moved from California, to PA with a spcn motorcycle that I built and registered in CA I got the response from the local PA inspectors that there was no way that PA would allow the spcn title from CA to PA to transfer. I mentioned that I thought it was a federal law and that the VIN that the PA inspectors were having difficulty with (yet was given the OK by CA) was going to have to be replaced with a PA VIN. It was my understanding at that time that the VIN was in the federal data base and tampering with would be a federal offense.

Well, I asked them to place the documention in the queue and see what happens. It was surprisingly easy and the paperwork came back from PA very quickly honoring the CA title and VIN.

I don't understand why CA would not honor a VIN and title that was legally issued from another state. Am I missing something?

[mrmustang]

Originally Posted by Morgester

There is no federally issued VIN on these vehicles nor are they manufactured per DOT specifications (air bags anyone?) The only reason they are on the road is due to state law. In California it is the special manufactured rule that allows them in.

I believe that there may be an issue under federal law if these can even be built.

I hate to say it, but you are correct, but also incorrect. As seen below, when a state issues a VIN (Vehicle Identification Number) it is placed in a HNTSA style database, this is a federal level database that once applied takes the state equation out of the loop from then on forward.

In particular, I suggest you read Code of Federal Regulations (there are others but this one will do for now)
Title 49, Volume 5, Parts 400 to 999
Revised as of October 1, 2000
From the U.S. Government Printing Office via GPO Access

Specifically:
Page 158
TITLE 49--TRANSPORTATION
CHAPTER V--
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
PART 565-565.7

http://www.nhtsa.dot.gov/


You might find that what you propose, and what is currently your stand on the way things "must be in the state of California" are contradictory and illegal in the eyes of the Federal Government. Tread lightly on this issue Robert, as the laws are clearly spelled out as to what a state government can and cannot do when it comes to VIN's and legally issued (again legally issued is the key here, nothing subversive to try and circumvent paying taxes or anything else for that matter which may be illegal in nature) title paperwork.


Again here is wishing you well.


Sincerely,

Bill S.

[Morgester]

Originally Posted by marcalan

When I moved from California, to PA with a spcn motorcycle that I built and registered in CA I got the response from the local PA inspectors that there was no way that PA would allow the spcn title from CA to PA to transfer. I mentioned that I thought it was a federal law and that the VIN that the PA inspectors were having difficulty with (yet was given the OK by CA) was going to have to be replaced with a PA VIN. It was my understanding at that time that the VIN was in the federal data base and tampering with would be a federal offense.

Well, I asked them to place the documention in the queue and see what happens. It was surprisingly easy and the paperwork came back from PA very quickly honoring the CA title and VIN.

I don't understand why CA would not honor a VIN and title that was legally issued from another state. Am I missing something?

California does honor the VIN and title but we have states giving spcn vehicle years based on what they replicate. No big deal until you realize that our emission rules are tied to that year. Plan is that we honor the VIN and title but you have to pass emissions based on what the car really is. So the same rules that apply to every other car in California apply to you.

So you’re out of state vehicle either has to pass emissions per year of build or get an SB100 exemption. As to the SB 100 exemption look at my other post as to proposed legislation lifting the 500 limit.

[Randy Rosenberg]

Originally Posted by Morgester

California does honor the VIN and title but we have states giving spcn vehicle years based on what they replicate. No big deal until you realize that our emission rules are tied to that year.

From my understanding of the "SEMA" model legislation proposal (voted into law by many of the states listed in the early post), it is very clear that emission rules are tied to model year, as well as brake, lamp and safety equipment/inspections are tied to the same model year. The states which have adopted the "SEMA" model legislation did so with full knowledge of the emission requirements and how they are tied to the model year.

[LudicrousSpeed]

...My left eye is starting to throb...

[Chaplin]

Originally Posted by Randy Rosenberg

From my understanding of the "SEMA" model legislation proposal (voted into law by many of the states listed in the early post), it is very clear that emission rules are tied to model year, as well as brake, lamp and safety equipment/inspections are tied to the same model year. The states which have adopted the "SEMA" model legislation did so with full knowledge of the emission requirements and how they are tied to the model year.

Very true Randy.

Morgester-
This is very interesting. While CA, acknowledges that kit cars legally titled in other states as 1965 model years are entitled to full faith and credit and entitled to keep their 1965 titles, CA has determined that even though State X says it is a 1965, that State X has it wrong and it is really form over substance as those cars were not built in 1965 and CA is therefore going to impose its own set of emissions standards on 1965 titled kit cars. Interesting argument, but the argument itself elevates form over substance and may still encounter full faith and credit problems, as CA would not be giving full faith and credit to the acts of it Sister States, but only "partial credit" because CA is saying "Even though State X says it is a 1965, we really don't think so and are going to treat it differently because we think it is different". In the end, CA is not fully honoring the determination of its Sister States. The other potential problem with this of course is the equal protection clause (I assume the CA Constitution has one of these as well). What justification does CA have in selecting only those 1965 titled kit cars to current emissions and not all 1965 model cars? Is it fair to subject two different groups of people, both of whom who have cars legally titled as 1965 model years, to different requirements?

I give the CA legislature an "A" for creativity, but don't know if this solves the issue for them.

[Ron61]

Remember this is a state that does not consider itself as subject to any law except what they make up at the time. Following is the Health and Safety code section used by and Pertaining to SB-100 registrations.

Health and Safety Code
44017.4. (a) Upon registration with the Department of Motor Vehicles, a passenger vehicle or pickup truck that is a specially constructed vehicle, as defined in Section 580 of the Vehicle Code, shall be inspected by stations authorized to perform referee functions. This inspection shall be for the purposes of determining the engine model-year used in the vehicle or the vehicle model-year, and the emission control system application. The owner shall have the option to choose whether the inspection is based on the ENGINE MODEL-YEAR USED IN THE VEHICLE OR THE VEHICLE MODEL-YEAR.

(1) In determining the engine model-year, the referee shall compare the engine to engines of the era that the engine most closely resembles. The referee shall assign the 1960 model-year to the engine in any specially constructed vehicle that does not sufficiently resemble a previously manufactured engine. The referee shall require only those emission control systems that are applicable to the established engine model-year and that the engine reasonably accommodates in its present form.

(2) In determining the vehicle model-year, the referee shall compare the vehicle to vehicles of the era that the vehicle most closely resembles. The referee shall assign the 1960 model-year to any specially constructed vehicle that does not sufficiently resemble a previously manufactured vehicle. The referee shall require only those emission control systems that are applicable to the established model-year and that the vehicle reasonably accommodates in its present form.

(b) Upon the completion of the inspection, the referee shall affix a tamper-resistant label to the vehicle and issue a certificate that establishes the engine model-year or the vehicle model-year, and the emission control system application.

(c) The Department of Motor Vehicles shall annually provide a registration to no more than the first 500 vehicles that meet the criteria described in subdivision (a) that are presented to that department for registration pursuant to this section. The 500-vehicle annual limitation does not apply to the renewal of registration of a vehicle registered pursuant to this section.

(Amended Sec. 1, Ch. 693, Stats. 2002. Effective January 1, 2003

Yet some time ago they chose to ignore their own law and won't accept the year of the engine. But as long as it is shown in the code, how can they refuse to accept it when that is the section that they use to determine if your SPCN s SB-100 acceptable. Try to get an answer to that from one of the so called lawmakers in Sacramento. The answer that I got was the SB-100 laws are somewhat vague. What is vague about that? It is in black and white.

Ron

[Morgester]

These related issues have been fully covered on this site - please do a search under my name. In short to answer your question, take a look at Vehicle Code section 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." So what one statute gives another takes away.

[Ron61]

Specially Constructed Vehicles: Assignment of Model-Year
4750.1. (a) If the department receives an application for registration of a specially constructed passenger vehicle or pickup truck after it has registered 500 specially constructed vehicles during that calendar year pursuant to Section 44017.4 of the Health and Safety Code, and the vehicle has not been previously registered, the vehicle shall be assigned the same model-year as the calendar year in which the application is submitted, for purposes of determining emissions ( ) inspection requirements for the vehicle.

(b) If the department receives an application for registration of a specially constructed passenger vehicle or pickup truck that has been previously registered after it has registered 500 specially constructed vehicles during that calendar year pursuant to Section 44017.4 of the Health and Safety Code, and the application requests a model-year determination different from the model-year assigned in the previous registration, the application for registration shall be denied and the vehicle owner is subject to the emission control and inspection requirements applicable to the model-year assigned in the previous registration. For a vehicle that participated in the amnesty program pursuant to Section 9565, the model-year of the previous registration shall be the calendar year of the year in which the vehicle owner applied for amnesty. However, a denial of an application for registration issued pursuant to this subdivision does not preclude the vehicle owner from applying for a different model-year determination and application for registration under Section 44017.4 of the Health and Safety Code in a subsequent calendar year.

Added Sec. 2, Ch. 693, Stats. 2002. Effective January 1, 2003.
Amended Sec. 2, Ch. 420, Stats. 2008. Effective January 1, 2009.
The 2008 amendment added the italicized material, and at the point(s) indicated, deleted the following “control equipment and”

All well and good but you have never answered my question as to the elimination of the 500 number limit and if it just applies to the year or length of time the Amnesty program runs. I have read all of these sections and have them printed out. I can almost recite them from memory. This section states that if they receive a request for registration AFTER the 500 numbers are used and is the same as it has been for the past few years, Nothing new there. What I have asked is, does the 500 number limit come back once the Amnesty is over and we go back to the original SB-100 limit of 500 per year. Please just a Yes or No answer and if No, then please explain just what is going to happen. Everyone who never bothered to read your prior posts have the impression that this state is going to allow an unlimited number of Special Construction vehicles to be registered every year from now on if that bill in the other thread passes. Is this true?

Thanks,

Ron

[Morgester]

Per the leg. counsel SB 232 would:

1. delete the first 500 vehicle limitation and instead require the department to provide registration to any specially constructed vehicle that meets the specified criteria.

This reads no 500 cap

2. The bill would provide that the registered owner of a specially constructed vehicle that is currently registered or incorrectly registered may change the vehicle's registration by complying with those specified criteria.

These means the above is open to amnesity applications

[Ron61]

# 1: delete the first 500 vehicle limitation and instead require the department to provide registration to any specially constructed vehicle that meets the specified criteria.

This reads no 500 cap

Then this takes the 500 cap off of future vehicles registered under the SB-100 rules. That is what I have been trying to get stated in plain English.

# 2: The bill would provide that the registered owner of a specially constructed vehicle that is currently registered or incorrectly registered may change the vehicle's registration by complying with those specified criteria.

These means the above is open to amnesty applications

This part I had figured out but I appreciate your taking time to answer it. I was not trying to start any type of argument. I am just trying to be sure of what is being done.

Thank you,

Ron

[cobra girl 5]

I must tell you that we've had some customers in California issued an SB100 that shows the kit as a 1965 Ford or Convertible and others that show the present year. It changes from office to office. The same thing just happened again in January. They aren't consistant about anything in the California DMV system.