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California law has strict rules and hoops you have to jump through to change and engine (has to be same year and newer, has to have all the proper emissions equipment ...) you can get a Japanese engine to pass, at least in a Honda but it's a lot of paperwork and hoop jumping. I'm not sure about an SR swap since that engine was never available in our cars in this country.
Personally, I would just avoid the racing and stick to a legal venue and it won't be an issue but to each his own. Just don't be stupid, the rest of us drive on these roads too.
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HybridAndy - 240sx/SR20 owner
'90 240SX hatchback - 180sx front clip on it's way, project car
'98 Civic EX - CTR headlight and grill, Kosei K1's, daily driver
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