Fitting an e36 m tec 2 steering wheel to a e46.
Discussion
Removing the airbag steering wheel and fitting a non-airbag steering wheel to the car "should" be an MOT fail under section 5.4 of the MOT inspection Manual which states:
5.4 Supplementary Restraint Systems (SRS)
1) As far as is reasonably practicable, check that all airbags fitted as original equipment are present and not obviously defective.
Reason for rejection:
An airbag obviously missing or defective.
You should also fall foul on the rules concerning the Airbag warning light either not illuminating at all, or remaining on.
(There are exceptions for modified cars, such as cars that have been modified into rally cars, but your car will not fall into that category)
Chances are I suspect, you don't give a s
t about any of that though! 
5.4 Supplementary Restraint Systems (SRS)
1) As far as is reasonably practicable, check that all airbags fitted as original equipment are present and not obviously defective.
Reason for rejection:
An airbag obviously missing or defective.
You should also fall foul on the rules concerning the Airbag warning light either not illuminating at all, or remaining on.
(There are exceptions for modified cars, such as cars that have been modified into rally cars, but your car will not fall into that category)
Chances are I suspect, you don't give a s
t about any of that though! 
I had the E46 M3 CSL wheel on my old E36 back in days. I would get that instead, I think its slightly smaller and feels better. Removed air bag with just the airbag cover on, although airbag light was on had ti put a resistor in to turn it off or something to that extent this was back in 03!
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