Need to get an older car without a governor , for those 175MPH emergencies. If the 530i is governed at 100MPH then barring 'illegal' mods , your stuck. Is it running correctly(no check engine light) otherwise? I would find it hard to believe a beemer would be governed slower than an old dodge intrepid I had , which was limited to 115MPH. Any shops near you with equipment to scan the trans on that?? (if no engine problems)
There are no rules about rev limiters in California, automakers put them in their vehicles to prevent abuse. The smog inspection tests only idle, (some cases 2500rpm), or 15mph loaded and 25mph loaded...it also tests fuel vapor leaks on pre-1995 vehicles and of course, the OBD-II. The Technician is also responsible for the visual test.