Well, sorta. It's more like the Prius refuses to take the test. When the Prius is set to idle at 2,500 rpm on the tester, it does what it's supposed to do. It shuts off the engine to save fuel. Georgia's pre-hybrid equipment issues a failing grade because of an incomplete test.
Instead of just acknowledging its system is outdated, Georgia still requires Prius owners to pay the $25 testing fee for an "aborted test." That allows them to get a failed certificate from the tester which car owners must take to one of five waiver centers (M-F, 8 a.m.-4:30 p.m.) to be granted permission to buy a license plate. Don't ya love bureaucracy?
As one man in the CNN video says, "They say no good deed goes unpunished." Ain't that the truth.