This was going to be a 2 minute reply. But I've since put an hour into gathering relevant information.
Dima,
Thanks for the reply. You're correct, sort of. Per the BAR linked document in my original post for 2017 (document was updated today 1/12/18), any one monitor can be not set (which is what you said). However, the issue I also rain into was that at the time the standards changed, shops were afraid to smog pre 2000 cars where a monitor was not set due to a normalization (averaging) process where shops are compared to one another to determine if a shop is smoging more cars than average with a monitor not set. There were fears of penalties based on the folks I spoke to. Based on more recent conversations it sounds like some of that has been worked out by the state.
The program in question is called STAR. Per their FAQ
here station performance is assessed by comparing them to each other. And if I have it right, the STAR program really is euphemism to say that in order to continue providing SMOG services you have to be part of STAR. You can thank the state legislature under AB289 apparently. Also per the FAQ, there are non-STAR stations, but they're limited to what they can do. PLUS the state gets to tell the consumer if they HAVE to go to a STAR station. It basically says that unless its an ownership change that forced the SMOG, you have to go to STAR
It was a cluster of a rollout because when they changed the rules and implemented a system of averaging shops and looking for outliers, fear was created amongst various shops along with confusion over existing documentation (Appendix J for instance). So there was a period where shops did not want to frankly touch anything pre 2000 that did not have a monitor set.
Just for kicks, I took another look at this topic. I've linked a 2016 document below. Read from slide 10. You'll note that BAR identified vehicles of interest where there were readiness monitor issues. It lists that in some cases they worked with OEMs and in other cases issued guidance. But that was over a year AFTER the rules changed.
BAR Study:
https://www.bar.ca.gov/pdf/BAG_OBD_Monitors_10.21.16.pdf
Also, while looking at this topic again I found a cool site. You can see you SMOG history here:
https://www.bar.ca.gov/pubwebquery/Vehicle/PubTstQry.aspx