The problem your having is because for CA, as OEM's by Honda, they used a 4 wire oxygen sensor, CA specific controller and a CA specific transmission, all designed to make the equipment comply with the existing smog specifications, at the time of manufacture.
It is technically and as near as I can determine, physically possible to bring a VX into CA, after the fact and, if it is operating properly, get it to pass the CA smog requirements. What you have sounds like someone got a non-CA controller and jury rigged the wiring, instead of adding the additional wire that was needed for the 5 wire oxygen sensor.
If my understanding of what you are looking at is correct, you several choices.
First, get the documentation for adding a non-CA, VX controller to a non-VX vehicle. Then change the wiring to match the controller and then see if it will pass the smog inspection and testing.
Second alternative, get the documentation for adding a CA, VX controller to a non-VX vehicle. This will require getting a CA based controller and changing the wiring back to a 4 wire sensor. This will also require getting a 4 wire sensor, to work with the controller.
Third alternative, get a controller which matches the original vehicle type, change the wiring to the original and change the oxygen sensor back to the original.
Fourth alternative. In California, legally, the seller of a vehicle is responsible for making the vehicle pass the smog tests. If they can't do that, then legally they have to give you a refund of your money and take the car back.
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