BILL NUMBER: AB 1858	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2016
	AMENDED IN SENATE  AUGUST 1, 2016
	AMENDED IN ASSEMBLY  MAY 27, 2016

INTRODUCED BY   Assembly Member Santiago
    (   Coauthor:   Assembly Member  
Maienschein   )
    (   Coauthor:   Senator   Bates
  ) 

                        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, 2020, require the department to
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  
unlicensed and unregulated  automobile dismantling, including
resulting tax evasion, environmental impacts, and public health
impacts. The bill would require the department, in consultation with
those agencies, on or before January 1, 2019, to submit a report to
the Legislature including specified 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
  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 comply with the licensing requirements,
environmental regulatory requirements, insurance obligations,
workplace safety requirements, and tax liability that licensed
automobile dismantlers comply with.
   (e) It is the intent of the Legislature to enact legislation to
require state agencies to collaborate in combating 
unlicensed, unregulated, and underground   unlicensed
and unregulated  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 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   unlicensed and
unregulated  automobile dismantling, including resulting tax
evasion, environmental impacts, and public health impacts. 
   (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) 
    (b  )  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  unlicensed and unregulated
 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. 

   (e) 
    (   c) (1) On or before January 1, 2019, the
department, in collaboration 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, shall submit a report to the
Legislature including, but not limited to, the following:
   (A) The number of unlicensed dismantlers investigated and the
number of investigations that resulted in an administrative
enforcement action, a civil 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.
   (F) Recommendations for modifying, eliminating, or continuing the
coordinated enforcement and compliance activities pursuant to this
section.
   (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.

   (f) 
    (   d)  This section shall remain in effect
only until January 1, 2020, and as of that date is repealed, unless a
later enacted statute, that is enacted before January 1, 2020,
deletes or extends that date.