BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 805
          Author:   Fuentes (D)
          Amended:  8/26/09 in Senate
          Vote:     21

           
           SEN. TRANSPORTATION & HOUSING COMMITTEE :  9-0, 6/9/09
          AYES:  Lowenthal, Huff, DeSaulnier, Hollingsworth, Kehoe,  
            Oropeza, Pavley, Simitian, Wolk
          NO VOTE RECORDED:  Ashburn, Harman

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  79-0, 5/4/09 - See last page for vote


          SUBJECT  :    Licensing of automobile dismantlers

           SOURCE  :     State of California Auto Dismantlers  
          Association


           DIGEST  :    This bill requires the Department of Motor  
          Vehicles to investigate thoroughly all the information  
          contained in an application for a license submitted by an  
          automobile dismantler.

           Senate Floor Amendments  of 8/26/09 specify the Department  
          of Motor Vehicles is required to make a thorough  
          investigation of all of the information contained in a  
          renewal application for an automobile dismantler license as  
          of January 1, 2011.

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           ANALYSIS  :    Existing law requires an automobile dismantler  
          to procure a Department of Motor Vehicles (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 applications must provide DMV with information, as  
          prescribed by DMV and submitted under penalty of perjury,  
          on the character, honest, 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.

          4.A statement that the applicant has either filed a storm  
            water permit or is not required to obtain one.

          5.A statement indicating that the applicant has 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 files is  







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          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 requires DMV to make a thorough investigation of  
          all of the information contained in an initial application  
          for an automobile dismantler's license.  For an application  
          for a re

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/27/09)

          State of California Auto Dismantlers Association (source)
          California Auto Dismantlers and Recyclers Alliance
          Pacoima Beautiful
          Sustainable Conservation

           ARGUMENTS IN SUPPORT  :    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's office 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  
          information in a license application, the proponents intend  
          through this bill to assure than an applicant operating an  
          auto dismantling business in California meets other  







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          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.


           ASSEMBLY FLOOR  : 
          AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Jeffries, Jones, Knight,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada, Bass
          NO VOTE RECORDED: Huffman


          JJA:cm  8/27/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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