BILL NUMBER: AB 1858 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 27, 2016
INTRODUCED BY Assembly Member Santiago
FEBRUARY 10, 2016
An act to add and repeal Section 11545 of the Vehicle Code,
relating to vehicle dismantling.
LEGISLATIVE COUNSEL'S DIGEST
AB 1858, as amended, 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:
SECTION 1. The Legislature finds and declares the following:
(a) Automobile dismantlers are occupationally licensed by the
Department of Motor Vehicles to provide an essential service that
directly addresses society's ever increasing problem
increasing challenge of what to do with
end-of-life vehicles.
(b) An estimated 1.2 million vehicles will reach the end of their
useful lives this year in California, either by determination of
their owners or by being declared a total loss by an insurance
company. While those vehicles might otherwise end up on the roadside
or abandoned in empty lots, licensed dismantlers acquire them and
safely convert them into reusable and recycled commodities.
(c)
(b) Automobile dismantlers face an array of costly yet
necessary requirements to properly process end-of-life vehicles,
including, but not limited to, safely removing and recycling unused
gasoline, brake fluid, engine oil, transmission fluid, antifreeze,
tires, mercury switches, batteries, and freon.
(d)
(c) Automobile dismantlers are small and medium sized
businesses regulated by over a dozen state, local, and federal
agencies with jurisdiction over water quality, hazardous materials,
air quality, worker safety, payment of taxes, and vehicle titling
requirements.
(e) The underground economy in California is a significant dilemma
facing the automobile dismantling industry with at least 30% of the
end-of-life vehicles disappearing into the underground economy each
year and not being accounted for.
(f) Underground automobile dismantling operators are cash-only
businesses that do not face the same licensing requirements,
environmental regulatory requirements, insurance obligations, work
place safety requirements, and tax liability as required by law for
licensed dismantlers, resulting in these bad actors enjoying a
significant and growing competitive advantage over the licensed
dismantlers when purchasing vehicles at salvage pools, insurance
auctions, and from the public.
(d) Unlicensed automobile dismantlers do not face the same
licensing requirements, environmental regulatory requirements,
insurance obligations, workplace safety requirements, and tax
liability as required by law for licensed automobile dismantlers.
(g) The impacts
(e) The impact of unlicensed and
unregulated automobile dismantling and limited enforcement activity
has led to a growing lack of compliance with
dismantler laws, illegal dumping and disposal of vehicles,
improper hazardous waste handling, unsafe workplaces, non-payments of
taxes, and potential adverse impacts to public health.
environmental requirements, and payment of taxes.
(h) The bulk of this unlicensed and unregulated automobile
dismantling is occurring in California's most vulnerable,
disadvantaged, and underserved communities.
(i)
(f) It is the intent of the Legislature to enact
legislation to establish a multiagency task force or
partnership to collaborate in combating
underground, unlicensed, unlicensed and
unregulated automobile dismantling for the purposes of investigating
environmental quality issues, public health concerns, and
criminal issues and tax evasion that is
are occurring as a result of this activity and
the lack of enforcement.
SEC. 2. Section 11545 is added to the Vehicle Code, to read:
11545. (a) The department shall establish an Unlicensed
Automobile Dismantling Task Force comprised of representatives of the
department, the State Board of Equalization, and the California
Environmental Protection Agency.
(b) The task force shall collaborate to investigate the
occurrences of underground, unlicensed automobile
dismantling in violation of this chapter, including resulting tax
evasion and environmental damage.
(c) (1) On or before March 1, 2018, the task force shall submit a
report to the Legislature including the following information:
(A) The number of leads or complaints received by the task force.
(B) The number of complaints investigated and complaints that
resulted in a civil action or criminal prosecution.
(C) Recommendations for modifying, eliminating, or continuing the
task force's activities.
(D) Recommendations for statutory or regulatory changes, or both,
needed to better allow for enforcement against unlicensed automobile
dismantlers.
(2) The report required by this subdivision shall be submitted to
the Legislature pursuant to Section 9795 of the Government Code.
(d) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.