BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 805
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 805 (Fuentes)
          As Amended  August 26, 2009
          Majority vote
           
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          |ASSEMBLY:  |79-0 |(May 4, 2009)   |SENATE: |39-0 |(September 2,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    TRANS  .

           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.  

           The Senate amendments  make this bill's requirements effective on  
          January 1, 2011.  

           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  








                                                                  AB 805
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               filed a hazardous materials business plan or is not  
               required to file that plan; and,

             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.  

           AS PASSED BY THE ASSEMBLY  , this bill repealed the statute that  
          prohibits DMV from investigating application information  
          regarding an auto dismantler license applicant's permits,  
          identification numbers, and other information as specified in  
          items  2) a) through  2) e) above.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, DMV's costs would be minor and absorbable. 

           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.  
           









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


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