BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 805
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: fuentes
VERSION: 2/26/09
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: June 9, 2009
SUBJECT:
Licensing of automobile dismantlers
DESCRIPTION:
This bill requires the Department of Motor Vehicles (DMV) to
investigate thoroughly all the information contained in an
application for a license submitted by an automobile dismantler.
ANALYSIS:
Existing law requires an automobile dismantler to procure a
DMV-issued license or temporary operating permit in order to
operate in this state. To procure a license, an auto dismantler
must file an application and pay an application fee of $101 to
DMV. Dismantlers must renew their license every two years. To
renew a license, a dismantler files an application and pays a
renewal fee of $86. There are also separate fees for each
business location and each dismantler license plate, which a
dismantler affixes to vehicles that are being moved on public
streets.
The application must provide DMV with information, as prescribed
by DMV and submitted under penalty of perjury, on the character,
honesty, integrity, and reputation of the applicant. In
addition, the application shall provide DMV with:
1. The applicant's tax identification number assigned by
the Franchise Tax Board;
2. The applicant's Board of Equalization resale permit
number;
3. The applicant's identification number issued by the
California Environmental Protection Agency;
AB 805 (FUENTES) Page 2
4. A statement that the applicant has either filed a storm
water permit or is not required to obtain one; and
5. A statement indicating that the applicant has either
filed a hazardous materials business plan or is not
required to file one.
Not later than 120 days after receiving the application and fee,
DMV must investigate the information on the character, honesty,
integrity, and reputation of the applicant. While DMV is
completing its investigation, it may issue the applicant a
temporary operating permit. Upon completing its investigation to
its satisfaction, DMV issues the dismantler's license.
DMV may refuse to issue a license for cause, including because
the information on the application filed is incorrect, the
applicant previously had a license that DMV revoked or suspended
for a cause that was never corrected, or the applicant has been
convicted of a crime related to the qualifications, functions,
or duties of auto dismantling.
This bill adds to DMV's required investigation of the
information in an application for an auto dismantler's license
the information submitted pursuant to items #1-5 above related
to the applicant's permits, identification numbers, and plans
from state agencies other than DMV.
COMMENTS:
1.Purpose . Auto dismantlers process and recycle motor vehicles
at the end of their lives. In doing so, dismantlers remove
engine oil, transmission fluid, tires, and other potentially
hazardous materials from the vehicles. In addition, auto
dismantlers ensure any remaining parts that cannot be resold
are properly recycled.
The sponsor believes that many licensed auto dismantlers are
not actually in possession of tax identification numbers or
environmental permits to operate, even though they have
asserted, under penalty of perjury, on their applications to
DMV that they are. Proponents note that when hazardous
materials in vehicles are not properly removed, processed, and
recycled, our communities and the environment suffer. The
author 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
percent of those vehicles. By requiring DMV to verify all the
AB 805 (FUENTES) Page 3
information in a license application, the proponents intend
through this bill to assure that an applicant operating an
auto dismantling business in California meets other important
statutory requirements relating to environmental protection
and tax payments.
With the expansion of state online databases, the sponsor
believes that verifying the status of required certifications
should be easily performed by DMV within the required 120
days.
2.Costs to DMV . DMV has not taken a position on this bill, but
its Occupational Licensing Branch handles the investigations
of applications for original and renewal licenses for auto
dismantlers. This bill would create additional workload for
DMV as it would have to investigate whether the applicant has
secured the necessary permits, identification numbers, and
plans from other state agencies. Some may question, given that
the information in the application is submitted under penalty
of perjury and that DMV can revoke a license at any time for
cause, whether this bill is necessary. The proponents,
however, assert that there is no check at any point to ensure
that dismantlers have the required permits, identification
numbers, and plans and that DMV is the appropriate entity when
it issues or renews a license to ensure that the dismantler
does have the appropriate tax identification numbers and
environmental permits.
Assembly Votes:
Floor: 79 - 0
Appr: 16 - 0
Trans: 10 - 0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 3, 2009)
SUPPORT: State of California Auto Dismantlers Association
(sponsor)
Pacoima Beautiful
OPPOSED: None received.