We only have to smog the cars once a year here (but only in certain cities). No dyno type of test but they do hook the computer up to the diagnostics port and run the exhaust sniffer, check the gas cap, etc. I've never had anything fail yet.
For Grandpa's Burb it would have to be a dyno test. For all OBDI systems they have to be put on the dyno and test at something like 20 and 40mph.
It also cost about $30 more for an OBDI vehicle over the OBDII.
I was very surprised by the number of older vehicles that I saw when I was in San Diego and a number looked like P.O.S. I couldn't believe they had passed emissions test.