My opinion is that you could have two issues. First did they smog test fail due to the P0700 or did it not pass the tailpipe emission output portion?
The P0700 is just basically an informational code telling you that you have a code in the transmission control module which would be related to the shifting feeling that you are getting driving down the road.
If the converters are clogged it could cause some driving issue but that is normally low power and not necessarily shifting issues.
So I suspect the vehicle failed the test due to the converters not reducing the emissions enough and then you are also experiencing a shifting issue which would be related to the transmission.
Do you have the test results from the smog test and have you actually checked for codes? There is a chance it failed the smog test due to the code they found but the P0700 is does not give us enough info to determine the issue. We need to check for all codes and if you can't scan for codes, then you can stop by a parts store and they should be able to pull all codes.
https://www.2carpros.com/articles/checking-a-service-engine-soon-or-check-engine-light-on-or-flashing
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Sunday, June 7th, 2020 AT 1:31 PM