BILL ANALYSIS
SENATE TRANSPORTATION COMMITTEE Bill No:
sb 1713
Senator Quentin L. Kopp, Chairman Author:
alquist
Amended: As
Introduced
Analysis by: Steve Schnaidt Fiscal:
Yes
SUBJECT:
Total loss salvage vehicles: inspections.
DESCRIPTION:
This bill would revise and extend the stateos program for
the pre-registration inspection of reconstructed vehicles
which previously were reported as total loss salvage
vehicles or dismantled.
ANALYSIS:
Prior to July 1995, state law provided that the Department
of Motor Vehicles (DMV) had authority to inspect any
vehicle proposed to be registered if the vehicle previously
was reported to be a total loss salvage vehicle or to have
been dismantled. The inspectionos purpose was to determine
the vehicleos proper identify, deter fraud and ensure that
the reconstructed vehicle met all safety and equipment
requirements. The DMV also was authorized to request that
a designated agent conduct the inspections.
Effective July 1, 1995, SB 1833 (Torres, 1994) revised and
enhanced the salvage vehicle inspection program to require
the California Highway Patrol (CHP) to conduct a
comprehensive inspection of all salvage and dismantled
vehicles upon application for the vehicleos registration.
Such inspections included a review of bills of sale and
invoices for component parts used in the reconstruction
process. The number of vehicles to be inspected far
exceeded state and industry estimates, however,
overwhelming the CHPos inspection capabilities and creating
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an immense inspection backlog. Legislative relief was
proposed to suspend the program.
SB 549 (Alquist, 1995) immediately established a moratorium
on the mandatory inspection of all total loss salvage
vehicles by the CHP until January 1, 1997. During the
15-month moratorium period, the prior inspection provisions
are in effect which give the DMV discretionary authority
for inspections and identity verification. The CHP,
however, is authorized to conduct comprehensive inspections
on a random basis and is doing so to the extent possible
under existing personnel and fiscal resources.
This bill would establish a revised inspection program for
salvage and dismantled vehicles. The bill would:
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1. Require the DMV to inspect and determine the proper
identify of salvage and previously-dismantled vehicles
proposed to be registered and allow the DMV to request that
the CHP conduct the inspection of individual vehicles.
2. Require the CHP to randomly inspect such vehicles to
determine their proper identify.
3. Reinstate provisions requiring the registration
applicant to have vehicle and component parts bills of sale
and invoices available for presentation on demand of the
CHP.
4. Reinstate the $50 per vehicle registration and
inspection fee, as a maximum charge, to cover the costs of
conducting the comprehensive inspections. Funds would be
available upon the Legislatureos appropriation (through the
budget process) to the DMV and CHP.
5. Prohibit the registration of such vehicles pending
satisfactory completion of the specified inspection
requirements.
COMMENTS:
1. The intent of the bill is to reinstate a workable and
effective inspection program as originally envisioned in SB
1833; that is, to identify stolen vehicles and parts and
deter the theft and title olaunderingo of such vehicles and
parts.
2. Originally, salvage and related industry
representatives estimated the SB 1833 inspection volume at
160,000 annually. The administration, however, secured
resources sufficient to fund approximately 66,000 annual
inspections. Subsequently, an even larger volume of
inspection requests developed; revised estimates projected
the volume of inspections to be as high as 272,000
annually.
3. The CHP indicates that it would phase-in the proposed
random inspection program over a two or three-year period.
The inspection fee would be adjusted, up to the $50
statutory maximum, as needed to fund the expanding program.
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4. The CHP and other law enforcement agencies indicate
that salvage vehicle fraud activities declined or moved out
of state during the limited operation of the now-suspended
inspection program. Proponents contend such information is
indicative of the effectiveness of the comprehensive
inspection program.
5. Subsequent review. In view of the considerable changes
in the salvage inspection program and the current proposal
for still another format, should the program be reviewed at
a later date by adding a sunset clause or similar
reconsideration?
6. Suggested clarification. It may be helpful to clarify
(p.4) that 1) the inspections conducted by the CHP at
random or at the DMVos request are the comprehensive
14-point inspections sought by the proponents and in effect
earlier and 2) the CHPos inspection activities do not
cover all salvage vehicles.
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6. If approved, the Senate Rules Committee has directed
the bill be re-referred to the Senate Criminal Procedure
Committee.
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
April 10, 1996.)
SUPPORT: California Highway Patrol
State of California Auto Dismantlers
Association
California Autobody Association
Personal Insurance Federation of California
Santa Clara County Auto Recyclers
Association
OPPOSED:
SB 1713 (ALQUIST)
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4/9/96