AB 1858, as introduced, Santiago. Automobile dismantling: task force.
Existing law establishes the Department of Motor Vehicles, the State Board of Equalization, and the California Environmental Protection Agency, and prescribes the powers and duties of those state agencies. Under existing law, it is unlawful for any person to act as an automobile dismantler without having an established place of business, meeting specified requirements, and having a current, valid license or temporary permit issued by the Department of Motor Vehicles.
This bill would, until January 1, 2019, require the department to establish an Unlicensed Automobile Dismantling Task Force comprised of representatives of the department, the State Board of Equalization, and the California Environmental Protection Agency. The bill would require the task force to collaborate to investigate the occurrences of underground, unlicensed vehicle dismantling in violation of those provisions, including resulting tax evasion and environmental damage. The bill would require the task force, on or before March 1, 2018, to submit a report to the Legislature including specified information pertaining to the task force’s activities. The bill would state related findings and declarations of the Legislature.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares the following:
2(a) Automobile dismantlers are occupationally licensed by the
3Department of Motor Vehicles to provide an essential service that
4directly addresses society’s ever increasing problem of what to do
5with end-of-life vehicles.
6(b) An estimated 1.2 million vehicles will reach the end of their
7useful lives this year in California, either by determination of their
8owners or by being declared a total loss by an insurance company.
9While those vehicles might otherwise end up on the roadside or
10abandoned in empty lots, licensed dismantlers acquire them and
11safely convert them into reusable and recycled commodities.
12(c) Automobile dismantlers face an array of costly yet necessary
13requirements to properly process end-of-life vehicles, including,
14but not limited to, safely removing and recycling unused gasoline,
15brake fluid, engine oil, transmission fluid, antifreeze, tires, mercury
16switches, batteries, and freon.
17(d) Automobile dismantlers are small and medium sized
18businesses regulated by over a dozen state, local, and federal
19agencies with jurisdiction over water quality, hazardous materials,
20air quality, worker safety, payment of taxes, and vehicle titling
21requirements.
22(e) The underground economy in California is a significant
23dilemma facing the automobile dismantling industry with at least
2430% of the end-of-life vehicles disappearing into the underground
25economy each year and not being accounted for.
26(f) Underground automobile dismantling operators are cash-only
27businesses that do not face the same licensing requirements,
28environmental regulatory requirements, insurance obligations,
29work place safety requirements, and tax liability as required by
30law for licensed dismantlers, resulting in these bad actors enjoying
31a significant and growing competitive advantage over the licensed
32dismantlers when purchasing vehicles at salvage pools, insurance
33auctions, and from the public.
34(g) The impacts of unlicensed and unregulated automobile
35dismantling and limited enforcement activity has led to a growing
P3 1lack of compliance with dismantler laws, illegal dumping and
2disposal of vehicles, improper hazardous waste handling, unsafe
3workplaces, non-payments of taxes, and potential adverse impacts
4to public health.
5(h) The bulk of
this unlicensed and unregulated automobile
6dismantling is occurring in California’s most vulnerable,
7disadvantaged, and underserved communities.
8(i) It is the intent of the Legislature to enact legislation to
9establish a multiagency task force or partnership to collaborate in
10combating underground, unlicensed, and unregulated automobile
11dismantling for the purposes of investigating environmental quality
12issues, public health concerns, and criminal tax evasion that is
13occurring as a result of this activity and the lack of enforcement.
Section 11545 is added to the Vehicle Code, to read:
(a) The department shall establish an Unlicensed
16Automobile Dismantling Task Force comprised of representatives
17of the department, the State Board of Equalization, and the
18California Environmental Protection Agency.
19(b) The task force shall collaborate to investigate the occurrences
20of underground, unlicensed automobile dismantling in violation
21of this chapter, including resulting tax evasion and environmental
22damage.
23(c) (1) On or before March 1, 2018, the task force shall submit
24a report to the Legislature including the following information:
25(A) The number of leads or complaints received by the
task
26force.
27(B) The number of complaints investigated and complaints that
28resulted in a civil action or criminal prosecution.
29(C) Recommendations for modifying, eliminating, or continuing
30the task force’s activities.
31(D) Recommendations for statutory or regulatory changes, or
32both, needed to better allow for enforcement against unlicensed
33automobile dismantlers.
34(2) The report required by this subdivision shall be submitted
35to the Legislature pursuant to Section 9795 of the Government
36Code.
P4 1(d) This section shall remain in effect only until January 1, 2019,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2019, deletes or
extends that date.
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