BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 805
                                                                  Page  1

          Date of Hearing:   April 22, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                AB 805 (Fuentes) - As Introduced:  February 26, 2009 

          Policy Committee:                               
          TransportationVote:10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill 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. 

           FISCAL EFFECT

           DMV anticipates any costs to the department would be minor and  
          absorbable, reflecting two factors:

          1)Most of the new information requiring investigation can be  
            verified on line, and thus would add only a modest amount of  
            time to the application process.

          2)Only about 100 dismantler's license applications or renewals  
            are processed by DMV each year. 
           
          COMMENTS
           
           1)Background  . Existing law 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. It also requires that the applicant  
            provide, if available, his or her (a) Board of Equalization  
            resale permit number; (b) identification number issued by the  
            California Environmental Protection Agency, (c) 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) statement indicating that the applicant has  
            either filed a hazardous materials business plan or is not  
            required to file that plan, and (e) tax identification number  








                                                                  AB 805
                                                                  Page  2

            assigned by the Franchise Tax Board. The applicant is required  
            to provide the information under penalty of perjury, but  
            current law does not require DMV to investigate the tax and  
            environmental items.

           2)Rationale  . This bill is sponsored by the State of California  
            Auto Dismantlers Association, and is intended to ensure that  
            an applicant operating an auto dismantler business in  
            California meets key statutory requirements relating to  
            environmental protection and tax payments. The author cites  
            industry estimates suggesting that less than one-half of auto  
            dismantling is performed by businesses that are in compliance  
            with state laws.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081