Amended in Senate August 1, 2016

Amended in Assembly May 27, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1858


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,begin delete 2019,end deletebegin insert 2020,end insert require the department tobegin delete 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 unlicensed vehicle dismantling in violation of those provisions, including resulting tax evasion and environmental damage.end deletebegin insert collaborate with the State Board of Equalization, the California Environmental Protection Agency, the Department of Toxic Substances Control, the State Water Resources Control Board, the Department of Resources Recycling and Recovery, and the State Air Resources Board to review and coordinate enforcement and compliance activity related to unlicensed, unregulated, and underground automobile dismantling, including resulting tax evasion, environmental impacts, and public health impacts.end insert The bill would require thebegin delete task force,end deletebegin insert department, in consultation with those agencies,end insert on or beforebegin delete March 1, 2018,end deletebegin insert January 1, 2019,end insert to submit a report to the Legislature including specifiedbegin delete information pertaining to the task force’s activities.end deletebegin insert information.end insert 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:

P2    1

SECTION 1.  

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 increasing challenge of what to do
5with end-of-life vehicles.

6(b) Automobile dismantlers face an array of costly yet necessary
7requirements to properly process end-of-life vehicles, including,
8but not limited to, safely removing and recycling unused gasoline,
9brake fluid, engine oil, transmission fluid, antifreeze,begin insert catalytic
10converters,end insert
tires, mercury switches,begin insert lead acidend insert batteries, and freon.

11(c) Automobile dismantlers are small and medium sized
12businesses regulated by over a dozen state, local, and federal
13agencies with jurisdiction over water quality, hazardous materials,
14air quality, worker safety, payment of taxes, and vehicle titling
15requirements.

16(d) Unlicensed automobile dismantlersbegin insert operate in the
17underground economy andend insert
do notbegin delete face the sameend deletebegin insert comply with theend insert
18 licensing requirements, environmental regulatory requirements,
19insurance obligations, workplace safety requirements, and tax
20liabilitybegin delete as required by law forend deletebegin insert thatend insert licensed automobile
21
begin delete dismantlers.end deletebegin insert dismantlers comply with.end insert

begin delete

22(e) The impact of unlicensed and unregulated automobile
23dismantling and limited enforcement activity has led to alack of
24compliance with dismantler laws, environmental requirements,
25and payment of taxes.

26(f)

end delete

P3    1begin insert(e)end insert It is the intent of the Legislature to enact legislation to
2begin delete establish a multiagency task forceend deletebegin insert require state agenciesend insert to
3collaborate in combatingbegin delete unlicensed and unregulatedend deletebegin insert unlicensed,
4unregulated, and undergroundend insert
automobile dismantling for the
5 purposes of investigating environmental quality issues and tax
6evasion that are occurring as a result of this activity and the lack
7of enforcement.

8

SEC. 2.  

Section 11545 is added to the Vehicle Code, to read:

9

11545.  

(a) The department shallbegin delete establish an Unlicensed
10Automobile Dismantling Task Force comprised of representatives
11of the department, the State Board of Equalization, and the
12California Environmental Protection Agency.end delete
begin insert collaborate with the
13State Board of Equalization, the California Environmental
14Protection Agency, the Department of Toxic Substances Control,
15the State Water Resources Control Board, the Department of
16Resources Recycling and Recovery, and the State Air Resources
17Board to review and coordinate enforcement and compliance
18activity related to unlicensed, unregulated, and underground
19automobile dismantling, including resulting tax evasion,
20environmental impacts, and public health impacts. end insert

begin delete

21(b) The task force shall collaborate to investigate the occurrences
22of unlicensed automobile dismantling in violation of this chapter,
23including resulting tax evasion and environmental damage.

end delete
begin insert

24
(b) The State Board of Equalization, the California
25Environmental Protection Agency, the Department of Toxic
26Substances Control, the State Water Resources Control Board,
27the Department of Resources Recycling and Recovery, and the
28State Air Resources Board shall provide enforcement and the
29 necessary resources to the department for the investigation and
30reporting of the activities outlined in this section.

end insert
begin insert

31
(c) The department, along with the agencies listed in subdivision
32(a), may collaborate with and solicit information from district
33attorneys, certified unified program agencies, code enforcement
34agencies, and any other federal, state, or local agencies with
35jurisdictions over unlicensed, unregulated, and underground
36automobile dismantlers to achieve the purposes of this section.

end insert
begin insert

37
(d) The department, in consultation with the agencies listed in
38subdivision (a), shall establish a public outreach effort for
39soliciting referrals from the public, including, but not limited to,
P4    1an advertised telephone hotline lead, referral form, and other
2methods to identify and report unlicensed activity.

end insert
begin delete

3(c)

end delete

4begin insert(e)end insert (1) On or beforebegin delete March 1, 2018, the task forceend deletebegin insert January 1,
52019, the department, in collaboration with the State Board of
6Equalization, the California Protection Agency, the Department
7of Toxic Substances Control, the State Water Resources Control
8Board, the Department of Resources Recycling and Recovery, and
9the State Air Resources Board,end insert
shall submit a report to the
10Legislaturebegin delete including the following information:end deletebegin insert including, but
11not limited to, the following:end insert

begin delete

12(A) The number of leads or complaints received by the task
13force.

end delete
begin delete

14(B)

end delete

15begin insert(A)end insert The number ofbegin delete complaintsend deletebegin insert unlicensed dismantlersend insert
16 investigated andbegin delete complaintsend deletebegin insert the number of investigationsend insert that
17resulted inbegin insert an administrative enforcement action,end insert a civilbegin delete actionend delete
18begin insert enforcement action,end insert or criminal prosecution.

begin insert

19
(B) Any identified statutory or regulatory gaps for investigating
20and prosecuting unlicensed automobile dismantlers.

end insert
begin insert

21
(C) Information on how vehicles are acquired by unlicensed
22dismantlers, places where unlicensed activity is suspected or known
23 to occur, and the types of facilities where unlicensed activity tends
24to occur.

end insert
begin insert

25
(D) A summary of the barriers to adequate and efficient
26enforcement of environmental, tax, and licensing statutes and
27regulations against unlicensed dismantlers.

end insert
begin insert

28
(E) Proposed strategies for bringing unlicensed dismantlers
29into compliance through compliance assistance, education and
30training, or other identified methods.

end insert
begin delete

31(C)

end delete

32begin insert(F)end insert Recommendations for modifying, eliminating, or continuing
33thebegin delete task force’s activities.end deletebegin insert coordinated enforcement and compliance
34activities pursuant to this section.end insert

begin delete

35(D)

end delete

36begin insert(G)end insert Recommendations for statutory or regulatory changes, or
37both, needed to better allow for enforcement against unlicensed
38automobile dismantlers.

P5    1(2) The report required by this subdivision shall be submitted
2to the Legislature pursuant to Section 9795 of the Government
3Code.

begin delete

4(d)

end delete

5begin insert(f)end insert This section shall remain in effect only until January 1,begin delete 2019,end delete
6begin insert 2020,end insert and as of that date is repealed, unless a later enacted statute,
7that is enacted before January 1,begin delete 2019,end deletebegin insert 2020,end insert deletes or extends
8that date.



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