Chapter 3Automobile Dismantlers
Section § 11500
This law makes it illegal to operate as an automobile dismantler in California without a proper business location and a license or permit from the relevant department. Unlicensed dismantlers are committing a misdemeanor and are subject to increasing fines for repeated violations.
If someone is caught with nine or more cut catalytic converters without meeting legal requirements, penalties start as infractions and can escalate to misdemeanors for repeat offenses, with fines increasing at each step.
Also, any place used for unauthorized automobile dismantling is considered a public nuisance and can be legally shut down, with damages recoverable by state or local agencies.
Section § 11501
If you want to operate as an automobile dismantler, you must apply for a license from the department using the correct form. You also need to provide proof that you are genuinely in the business of dismantling cars.
Section § 11502
This law says that the department can issue licenses for running an automobile dismantling business. However, they can refuse to issue a license if the applicant doesn't meet certain requirements outlined in this code.
Section § 11503
If you're applying for a license related to vehicle operations in California, the department might refuse your application for several reasons. They can deny it if you've previously had a license revoked or suspended and not reinstated, either in California or another state.
Even being associated with a business or as a manager in a business that has had similar issues can disqualify you. Furthermore, if you've committed a crime, particularly one involving moral misconduct, or if your application contains incorrect information, you might also be rejected. Lastly, if there has been a decision to cancel, suspend, or revoke a license of a business where you were a representative, it could affect your chances, too.
Section § 11503.1
This law states that if there are reasons listed in this chapter that would allow authorities to suspend or revoke an automobile dismantler's license, those same reasons can be used to deny issuing a new license in the first place.
Section § 11503.5
This section allows the department to temporarily refuse to issue or suspend a license if the person or business applying has been convicted of a crime that reflects poorly on their character and is related to the job they're applying for. This even applies if the conviction is being appealed or is not final.
If the conviction is finalized or upheld on appeal, the temporary refusal or suspension can lead to the permanent denial or revocation of the license. If the license was provisionally denied or suspended with probation terms, those terms continue for the duration of what would have been the probation period.
If the conviction is overturned on appeal, the department must immediately cancel the refusal or suspension.
Section § 11504
This law explains what someone needs to do to apply for or renew a license under Section 11501 in California. Applicants must submit specific forms and provide details about their character and relevant permits, like a resale permit number or tax ID, under penalty of perjury. Applicants are also asked whether they need stormwater permits or hazardous materials business plans. The department will thoroughly review all new applications within 120 days, and for renewals, also within 120 days but with slightly different requirements. Additionally, any changes in license ownership must be reported within 10 days.
Section § 11505
This law explains the process of obtaining a special vehicle-related license in California. When someone is granted a license by the department, they receive a document with their name, address, and a unique identifying number. Once licensed, they can apply for special plates that include this unique number plus an extra identifier.
The department will also provide necessary books and forms, which remain their property, for licensees to use, and they can inspect these at any time.
Section § 11506
This section says that unless the law specifically requires that a license cannot be given, the Department of Motor Vehicles (DMV) can issue a driver's license with certain conditions or restrictions. These conditions are designed to protect the public and are based on what the DMV finds out about the person applying for the license.
Section § 11507
If someone applies for a license to operate as an automobile dismantler, they can get a temporary permit from the department while their application is under review. This temporary permit allows them to operate for up to 120 days. However, it can be canceled if the application is found to be incorrect, incomplete, or mistakenly issued. Once the license is granted or denied, the temporary permit becomes invalid.
Section § 11508
This law explains the renewal process for occupational licenses and special plates in California. These licenses and plates are valid for one year, starting from the last day of the month they were issued. To renew them, you must apply and pay the renewal fee up to 90 days before they expire. If you miss the deadline, you can still renew within 30 days after expiration by paying a renewal fee and a penalty. However, after the 30-day grace period, you can't renew anymore.
Section § 11509
This section allows the department to suspend or revoke an automobile dismantler's license if the licensee breaks certain rules. These include illegal use of plates, using fake names or false information, failing to separate business operations, and violating specific divisions of law. Other reasons include dealing with stolen vehicles, not meeting licensing requirements, failing to pay fees, providing 'bad' checks, and breaking past agreements. If any such issues arise, a hearing process is followed before action is taken.
Section § 11509.1
This law allows for a compromise settlement agreement between a licensee and the director after an accusation is filed. Such an agreement can include a fine or probation, but penalties can't exceed $1,000 per violation. This agreement must be completed before the hearing decision is finalized and adhere to a set penalty schedule. It is valid when signed by all parties involved and filed with the appropriate office. If the licensee doesn't follow the agreement, it becomes void, and further legal actions may proceed.
Section § 11509.5
If your car dismantler license was taken away or your application was denied, you usually have to wait at least one year before you can apply again. However, if the denial or revocation was based on specific reasons outlined in other sections of the law, you might be able to reapply sooner. To do that, you need to show proof to the department that those reasons are no longer an issue.
Section § 11510
This law allows the department to temporarily suspend an automobile dismantler's license and special plates for up to 30 days if it's considered necessary for public interest. If this happens, a hearing must occur and a decision must be made within 30 days of the suspension notice.
The hearing must follow a specific set of government procedures outlined in another part of the law.
Section § 11511
This law pertains to the suspension or revocation of an automobile dismantler's license in California. If a stolen vehicle or part of it is found at a dismantler’s place, it's presumed they knew it was stolen. However, they can prove otherwise by showing they've followed certain legal requirements. Similarly, if a partially dismantled vehicle is found on their premises, it's presumed they dismantled it unless they provide business records showing it was already in that condition when they acquired it.
Section § 11512
If the department refuses to issue a license to an automobile dismantler, the applicant has the right to request a hearing in writing within 60 days of being notified. This hearing will follow specific procedures set forth by the relevant government regulations.
Section § 11513
This law requires anyone applying for or holding an automobile dismantler's license in California to have a permanent business location. If they move or lose their business location, they must inform the department right away. They must also return their license and official documents if asked by the department.
If a licensed dismantler's business closes, legal documents can still be sent to their last known business address through registered mail unless they have provided a new address for service.
Section § 11514
This California law outlines the requirements for signs at an automobile dismantler's business. The business must display its license and a sign with the business name and address that is easily visible to the public. The sign should also indicate the type of business, such as "Automobile Dismantler." The sign must be at least 32 square feet on each side with letters at least six inches tall. Local authorities can allow smaller signs, but not smaller than four square feet per side.
Section § 11515
This section describes the requirements for handling "total loss salvage vehicles"—cars not worth repairing after damage. When an insurance company settles such a loss, they, or anyone they authorize, must send proof of ownership, license plates, and a $15 fee to the Department of Motor Vehicles (DMV) within 10 days. If they can't get the necessary documents from the car owner, they can request a 'salvage certificate' from the DMV, which certifies the car as a total loss.
If the car owner keeps the vehicle after it's deemed a total loss, they must also notify the DMV within 10 days, providing the necessary documents and fee. Without an insurance settlement, the owner or self-insurer is similarly responsible for notifying the DMV.
Before selling or disposing of the car, a salvage certificate must be obtained and given to the buyer. Anyone not following these rules may face legal consequences, such as fines or misdemeanors. Sellers must disclose to buyers that the vehicle is a total loss; failure to do so could result in a fine up to $500. The law is less strict (an infraction) for owners without insurance settlements unless there's fraud involved.
Section § 11515.1
This law states that a salvage pool, which is a place that sells damaged vehicles, can only sell a vehicle if it has the correct paperwork. They need to have either a salvage certificate or a nonrepairable vehicle certificate, unless the vehicle is one that matches specific exceptions where only a title is needed.
Section § 11515.2
This law outlines the process and responsibilities when an insurance company settles on a nonrepairable vehicle, which means a vehicle that can't be safely repaired. If an insurance company takes possession of such a vehicle, they must send the ownership documents, license plates, and a $15 fee to the Department of Motor Vehicles within 10 days to get a nonrepairable vehicle certificate. If they can't get the necessary documents from the owner, they can request the certificate anyway by signing a form under penalty of perjury.
If the owner keeps the vehicle after a total loss, they must also send these details and the fee to the department within 10 days of the settlement. The same process applies if there is no insurance settlement or if it's a self-insured vehicle. Owners or agents must obtain and pass on the nonrepairable vehicle certificate to any buyer no later than 10 days after the sale.
If a vehicle was stolen, these rules apply only if it's considered nonrepairable after recovery. The certificate must clearly state 'NONREPAIRABLE VEHICLE' on it. Violations of these rules can lead to misdemeanor charges, though some minor infractions might be handled differently unless there is an intent to defraud.
Section § 11515.3
This law explains the process when an insurance company decides not to take ownership of a totaled car and directs it to be returned to the original owner or lienholder. If notified by the insurer, the salvage yard or licensee of the department must send two notices to the vehicle's owner and lienholder, giving them time to collect the car before it's considered abandoned.
Owners have 30 days after the first notice and 14 days after the second to retrieve the vehicle. However, they can get an extra 30 days if they contact the salvage yard within this time. If the vehicle isn't picked up, it's deemed abandoned and the salvage yard can request a salvage certificate, making the vehicle free of liens. These entities need to keep detailed records for two years and make them available for law enforcement inspection.
Section § 11516
This law allows automobile dismantlers to operate or move vehicles without having to register or transfer them, as long as the vehicles are being transported to the dismantler's business or to a scrap processor and display special plates issued to the dismantler. However, this rule does not apply to work or service vehicles owned by dismantlers.
Additionally, dismantlers must keep the registration card for the special plates, or a copy, with the vehicle when using the special plates.
Section § 11517
If someone with special vehicle plates and a license passes away, California's Department of Motor Vehicles (DMV) can give temporary permission to their executor or next of kin to use those plates for up to one year. This is until the business is sold or the new owner officially qualifies for their own plates and license. The DMV might set certain rules or conditions to ensure public safety during this period.
Section § 11518
This law states that special plates and licenses for automobile dismantlers will automatically be canceled if certain events occur. These include abandoning their business location without notifying the department, surrendering their plates and license for any reason, or changing the licensed person. Furthermore, if the dismantler's business status or seller's permit is suspended or revoked, this also results in cancellation. However, if someone gives up their plates, it doesn't stop the department from taking further actions like suspension or revocation of the license. Even if the original licensee changes, the new one can apply to keep the plates until they expire.
Section § 11519
If a vehicle has been reported as a total loss salvage or dismantled, it can't be registered again until specific documents are provided. These include a bill of sale, an application, and compliance certificates for vehicle safety and pollution control.
Fleet owners with heavy trucks have some different requirements related to inspection. There's also a requirement for a Highway Patrol inspection certificate if involved in certain previous assessments.
Section § 11520
This law outlines the obligations of licensed auto dismantlers when they acquire vehicles for dismantling. They must mail a notice of acquisition to both the Department of Motor Vehicles and the Department of Justice within five days of getting the vehicle. Dismantling can start after ten days, or sooner if certain conditions are met. Within 90 days, dismantlers must submit ownership documents and license plates to the DMV, unless they can demonstrate an effort to obtain these documents if unavailable. Dismantlers must also keep detailed records of all vehicles acquired, including previous owner info, acquisition date, and vehicle details. Exceptions are made for vehicles acquired through specific sections of the law, or if clearance has already been processed by the previous owner.
Section § 11521
If you're an automobile dismantler and need a license, you must include your license or permit number in any ads for your services. This ensures transparency and compliance with regulations.
Section § 11522
This law allows local governments, like cities and counties, to create their own rules about the traffic of loose vehicle parts and accessories. Even if there are state laws on the matter, local authorities can set additional regulations to address specific issues in their area, as long as they do so under their police power.
Section § 11540
This law requires salvage yards, called salvage pools, to keep detailed records of every vehicle they acquire and get rid of, notifying the department when they dispose of a vehicle. When they acquire certain types of vehicles, like total loss or recovered stolen vehicles, they must remove and send any remaining license plates to the department before disposal. They also need to keep records of these plates for two years and allow peace officers to inspect them during business hours.
Section § 11541
This law requires the department to manage and enforce rules related to salvage pools, which are places that deal with wrecked or damaged vehicles. It started being effective on July 1, 1987.