BILL NUMBER: AB 1858	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 1, 2016
	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,  
2020,  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 unlicensed vehicle dismantling in violation of those provisions,
including resulting tax evasion and environmental damage. 
 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.  The bill would require the  task force,
  department, in consultation with those agencies,
 on or before  March 1, 2018,   January 1,
2019,  to submit a report to the Legislature including specified
 information pertaining to the task force's activities.
  information.  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 increasing challenge of what to do with
end-of-life vehicles.
   (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,  catalytic
converters,  tires, mercury switches,  lead acid 
batteries, and freon.
   (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.
   (d) Unlicensed automobile dismantlers  operate in the
underground economy and  do not  face the same 
 comply with the licensing requirements, environmental
regulatory requirements, insurance obligations, workplace safety
requirements, and tax liability  as required by law for
  that  licensed automobile  dismantlers.
  dismantlers comply with. 
   (e) The impact of unlicensed and unregulated automobile
dismantling and limited enforcement activity has led to alack of
compliance with dismantler laws, environmental requirements, and
payment of taxes.  
   (f) 
    (e)  It is the intent of the Legislature to enact
legislation to  establish a multiagency task force 
 require state agencies  to collaborate in combating
 unlicensed and unregulated   unlicensed,
unregulated, and underground  automobile dismantling for the
purposes of investigating environmental quality issues and tax
evasion that 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.   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 com   pliance activity related to
unlicensed, unregulated, and underground automobile  
dismantling, including resulting tax evasion, environmental impacts,
and public health impacts.  
   (b) The task force shall collaborate to investigate the
occurrences of unlicensed automobile dismantling in violation of this
chapter, including resulting tax evasion and environmental damage.
 
   (b) 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 shall
provide enforcement and the necessary resources to the department for
the investigation and reporting of the activities outlined in this
section.  
   (c) The department, along with the agencies listed in subdivision
(a), may collaborate with and solicit information from district
attorneys, certified unified program agencies, code enforcement
agencies, and any other federal, state, or local agencies with
jurisdictions over unlicensed, unregulated, and underground
automobile dismantlers to achieve the purposes of this section. 

   (d) The department, in consultation with the agencies listed in
subdivision (a), shall establish a public outreach effort for
soliciting referrals from the public, including, but not limited to,
an advertised telephone hotline lead, referral form, and  other
methods to identify and report unlicensed activity.  
   (c) 
    (e)  (1) On or before  March 1, 2018, the task
force   January 1, 2019, the department, in
collaboration with the State Board of Equalization, the California
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, 
shall submit a report to the Legislature  including the
following information:   including, but not limited to,
the following:  
   (A) The number of leads or complaints received by the task force.
 
   (B) 
    (A)  The number of  complaints  
unlicensed dismantlers  investigated and  complaints
  the number of investigations  that resulted in
 an administrative enforcement action,  a civil 
action   enforcement action,  or criminal
prosecution. 
   (B) Any identified statutory or regulatory gaps for investigating
and prosecuting unlicensed automobile dismantlers.  
   (C) Information on how vehicles are acquired by unlicensed
dismantlers, places where unlicensed activity is suspected or known
to occur, and the types of facilities where unlicensed activity tends
to occur.  
   (D) A summary of the barriers to adequate and efficient
enforcement of environmental, tax, and licensing statutes and
regulations against unlicensed dismantlers.  
   (E) Proposed strategies for bringing unlicensed dismantlers into
compliance through compliance assistance, education and training, or
other identified methods.  
   (C) 
    (F)  Recommendations for modifying, eliminating, or
continuing the  task force's activities.  
coordinated enforcement and compliance activities pursuant to this
section.  
   (D) 
    (G)  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) 
    (f)  This section shall remain in effect only until
January 1,  2019,   2020,  and as of that
date is repealed, unless a later enacted statute, that is enacted
before January 1,  2019,   2020,  deletes
or extends that date.