The dealership is required to have the smog check done on all vehicles that they sell. It is completely their responsibility. If they will not smog check the vehicle you have every right to return it. Technically you can not choose the smog station. Since they are required to perform the smog check, they have the option of choosing where the smog check is conducted If you are concerned they will simply have this BMW 745i pass the smog check without repairs that it needs, you can always take the BMW immediately after passing their smog check to your own smog check mechanic for a second inspection. Document the time between the two smog tests, the mileage you drove, and all other details such as time of day whether condition and so on. If the second smog test at your smog station fails, get the smog failure details and contact the dealership first. If there is no cooperation with the dealership, resort to reporting the incident to the Bureau of Automotive Repairs and the Department of Motor Vehicles Used Car Dealership Investigations Unit.
In terms of the air bag light, there is no law requiring the air bag light be off when a vehicle is sold; only that the air bags are not removed.