BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 805
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          Date of Hearing:   April 13, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                 AB 805 (Fuentes) - As Introduced:  February 26, 2009
           
          SUBJECT  :  Auto dismantlers

           SUMMARY  :  Requires the Department of Motor Vehicles (DMV) to  
          investigate all the information submitted on an application for  
          an auto dismantler's original or renewal license.  Specifically,  
           this bill  :  Repeals the statute that prohibits DMV from  
          investigating application information regarding an auto  
          dismantler license applicant's permits, identification numbers,  
          and other information as specified below under EXISTING LAW,  
          items 2) a) through 2) e).  

           EXISTING LAW  :  

          1)Requires an applicant for an auto dismantler's license to  
            provide DMV with information as to his or her character,  
            honesty, integrity, and reputation, as DMV may consider  
            necessary.  

          2)Requires DMV to require the applicant to furnish all of the  
            following information on any application for a new license or  
            the renewal of a license, if the applicant is required by  
            other provisions of law to have the following permits,  
            numbers, or plans:  

             a)   Board of Equalization resale permit number;  


             b)   Identification number issued by the California  
               Environmental Protection Agency;  


             c)   A statement indicating that the applicant has either  
               filed an application for a storm water permit or is not  
               required to obtain a storm water permit;  


             d)   A statement indicating that the applicant has either  
               filed a hazardous materials business plan or is not  
               required to file that plan; and,








                                                                  AB 805
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             e)   The tax identification number assigned by the Franchise  
               Tax Board.  

          3)Requires DMV to thoroughly investigate all of the information  
            on the application except for the permits, identification  
            numbers, and plans listed in 2) above.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, responsible auto dismantlers  
          who process and recycle end-of-life vehicles remove the engine  
          oil, transmission fluid, tires, and other harmful materials from  
          these vehicles.  Furthermore, they ensure any remaining parts  
          that cannot be resold are properly recycled.  

          When hazardous materials in vehicles are not properly removed,  
          processed, and recycled, the author asserts, our communities and  
          the environment suffer.  He cites industry estimates indicating  
          that nearly 1.8 million vehicles come to the end of their lives  
          in California each year, but responsible auto dismantlers  
          process only 40% of those vehicles.  Requiring DMV to verify all  
          the information in a license application is intended to assure  
          that an applicant operating an auto dismantler business in  
          California meets other important statutory requirements relating  
          to environmental protection and tax payments.  

          With the expansion of state online databases, the author  
          believes that verifying the status of required certifications  
          should be easily performed by DMV within the required 120 days.   
          In fact, DMV indicates that it would be able to use its existing  
          authority to require license applicants for to supply the  
          necessary data or documentation, which could include sign-offs  
          by the permitting agencies.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          State of California Auto Dismantlers Association 

           Opposition 
           
          None received
           








                                                                 AB 805
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          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093