That's very odd. As Starboard indicated California is perfectly fine with large tires and we do have the Dyno in Smog Check II counties. I smog mine at the AAA near work (not the cheapest place but damn convenient and the guy who runs the test didn't bat an eye at the 35's (I've only had it tested once since I put them on, we test every two years here).
Another point for the dyno smog checks... If you have a stick watch the guy, when I got the Chief smogged the first time the yahoo didn't know what he was doing and was lugging the hell out of the engine, Jeep almost failed the test because of that (just barely passed).
I'm curious, and maybe you know this Troy (you seem to be the person here who knows the most about this), is this a law issue or just a global policy at most (all) places doing the smog checks in the affected counties? I ask because it's rather odd for any state to one up us in Nanny laws!