AB 668

Under current law, a person may not purchase or bid on a motor vehicle from

a motor vehicle salvage pool unless the person holds a valid buyer identification

(BID) card issued by the Department of Transportation (DOT), the person displays

the BID card to the salvage pool, and the person includes the BID card number on

any bid submitted to the salvage pool. A motor vehicle salvage pool sells or

distributes damaged motor vehicles at wholesale, generally by auction. BID cards

are available only to motor vehicle dealers, wholesalers, and salvage dealers licensed

in this state or another state and to their employees. BID cards must contain the full

name, business and residence address, and a brief description of the card holder, as

well as the card holder's buyer identification number. The motor vehicle salvage pool

may not accept a bid or complete a sales transaction unless the bidder satisfies the

foregoing requirements. The motor vehicle salvage pool must also establish and

maintain, in compliance with standards established by DOT, a record of each motor

vehicle sold. DOT may also inspect the books and records of BID card holders, at the

cost of the card holder.

Also under current law, DOT issues a motor vehicle salvage dealer's license that

authorizes the license holder to conduct the business of a motor vehicle salvage

dealer. Motor vehicle salvage dealers carry on the business of wrecking, scrapping,

or dismantling (processing) motor vehicles, buying and selling motor vehicles for

processing, or selling parts from motor vehicles subject to processing. DOT issues

motor vehicle salvage dealers' licenses to persons who meet certain requirements,

including environmental requirements relating to storm water discharge and

ozone-depleting refrigerant recovery.

Current law defines a "junk vehicle" as a vehicle that is incapable of highway

operation and has no resale value except as a source of parts or scrap or that an

insurance company has taken possession of or title to because the cost of repairing

the vehicle exceeds its value.

This bill requires each BID card applicant to specify whether the applicant will

purchase any junk vehicle from a motor vehicle salvage pool. If the answer is in the

affirmative and the applicant is not a motor vehicle salvage dealer, the applicant

must meet the same environmental requirements relating to storm water discharge

and ozone-depleting refrigerant recovery that are applicable to motor vehicle

salvage dealers. If the applicant fails to meet these requirements, DOT cannot issue

or renew the BID card and, if the BID card has already been issued, DOT may

suspend or revoke the BID card.

The bill also requires a person other than a motor vehicle salvage dealer who

bids on a junk vehicle from a motor vehicle salvage pool to identify on at least one bid

sheet submitted to the motor vehicle salvage pool the address where the junk vehicle

will be stored. For each junk vehicle sold by a motor vehicle salvage pool to a

purchaser other than a motor vehicle salvage dealer, the motor vehicle salvage pool