The Honorable Arnold Schwarzenegger

Governor of California

State Capitol Building

Sacramento, CA 95814

Re: Smog Check

Dear Governor Schwarzenegger:

It was a pleasure meeting you on July 18, 2006 at the Small Business Press Conference that took place at the Sheraton Hotel in Sacramento.

The California Service Station Association & Automotive Repair Association (CSSARA) is proud to openly support your candidacy for re-election as California’s top executive.  We in small business need your leadership now! 

Small businesses, who participate in the states smog check program, are charged with a very important task that affects the health and well being of all Californian’s, that task being, the repair of polluting vehicles.  Automotive Repair Shops, mostly small mom & pop operations, actually partner with the state to reduce vehicle emissions.  These small businesses have invested heavily in smog-check, spending more then $60,000 per testing lane; not to mention, the extra wages and the cost of training that these shop owners have incurred.

Small businesses decision to invest with government on the smog check program has now evolved into a very poor decision at best.  Let me explain:

• Enhanced Program 1996 – Approximately 7000 small businesses invested $60,000 per testing lane, 15% to be directed to test only
• 1998 approximately 350 test only sites start-up.  State directs 15% to test only shops
• The 15% mathematically equates to a much higher number of directed cars then industry had anticipated as the definition of 15% was disputed with regards to vehicles subject to testing (voodoo math)
• In 2004 we have 1284 test only shops being subsidized by state mandate through DMV to have directed vehicles tested at test only
• Today, there is approximately 1700 test only shops performing approximately 50% of  all smog checks
• Today test and repair shops total approximately 5000; this reduction in available test and repair shops impacts the consumer costs of repair negatively

Please understand the only time a reduction in harmful emissions occurs is when a properly trained technician repairs the car.  All the testing in the world will not reduce emission one molecule.

The bureaucrats have mucked up the small business partnership with the state to reduce smog.  With the administration’s decision to wave smog checks for 6 years and newer and the exemption in change of  ownership from 2 to 4 years in 2004, small test and repair businesses have gone from approximately 7 tests per day to less then 2 tests per day.  AB578 (Horton) tried to address this imbalance.  Now the only participants in the program who actually reduce smog cannot amortize their cost of equipment and are mad as hell!

Recent knowledge has surfaced that vehicles directed by DMV to test only, indicates that High Emitter Profile (HEP) which is the basis by which those vehicles are directed  is in error 80% of the time. 

We request the administration take action on this immense injustice to those small businesses who invested in the smog check program.  Test only is not out performing Goldshield Test & Repair stations.  Stop consumer ping pong and over charging.  Let free enterprise work. Competition is good for the market place.

Governor, we need your common sense on this issue.  This can be fixed through regulation; it does not need legislative action. 

Thank you for your attention to this important issue.  Please call on me if I can be of help.

Sincerely,

Dennis DeCota

Executive Director

CSSARA

Cc: Chris Walker

       Marty Keller