This issue has shown up a few times in my recent searches, so even though it's "old" news I'm going to comment on it anyway. Here's an article from Motorcycle USA.
The California Air Resources Board (CARB) says they "fined" two motorcycle dealers for "illegal sales."
The California Air Resources Board last month fined two San Diego-area motorcycle dealers $180,000 for illegal sales. In 2006, ARB enforcement officers got an anonymous tip that San Diego-based GP Motorcycles and Moto Forza of Escondido, Calif., were illegally selling Husqvarna off-road motorcycles as on-road models. ARB investigators confirmed the allegations and took action.
Reading further into the article, it looks to me like CARB and DMV are corrupt and should be sued (or perhaps sue themselves) under the Racketeer Influenced and Corrupt Organizations Act.
I prefer to believe the dealer's story, under the concept of "innocent until proven guilty". The owner of GP Motorcycles had this to say:
In 2004 my dealership GP Motorcycles retailed some model year 2004 and 2005 Husqvarna off-road motorcycles. After the fact I learned that license plates had been issued for these units by the State of California Dept of Motor Vehicles.
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CARB initially insisted that I should pay $100,000 to make the matter "go away" but I refused...
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After several years of very close dealings with CARB I find a less than impressive bunch. Arrogant beyond belief, even to the point of condescension. It seems to me they only peripherally interested in environmental issue, but they are absolutely obsessed with the exercise of their power.
The salient points seem to be:
- The dealers sold motorcycles certified by CARB for sale in California.
- The DMV registered those motorcycles for on-road use.
- CARB "investigators" took their baseball bats to the dealers and "suggested" they pay $100,000.
- DMV is still registering off-road bikes for use on the street, and CARB is still "investigating" dealers for "illegal" sales.



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