VR_Operations_Manual_2025_Final.pdf

BUSINESS, CONSUMER SERVICES, AND HOUSING AGENCY • GAVIN NEWSOM, GOVERNOR

CONSUMER ASSISTANCE PROGRAM

10949 North Mather Boulevard, Rancho Cordova, CA 95670 Toll-Free (866) 272-9642 Local (916) 403-8800 | www.bar.ca.gov

Bureau of Automotive Repair Consumer Assistance Program

Vehicle Retirement Program Operations Manual

Helping California Consumers Clean the Air

The Vehicle Retirement Program Operations Manual describes the Consumer Assistance Program (CAP) procedures, which auto dismantlers shall follow in order to comply with the Standard Contract Agreement between the auto dismantler, CAP and the Bureau of Automotive Repair.

http://www.bar.ca.gov/

10949 North Mather Boulevard, Rancho Cordova, CA 95670 Toll-Free (866) 272-9642 Local (916) 403-8800 | www.bar.ca.gov

Table of Contents

PROGRAM DESCRIPTION AND PROCESS

Section 1 Administrative Process

1.1 BAR/CAP Responsibilities

1.2 CAP Hours of Operation

1.3 Obtaining and Submitting an Application

1.4 Status of Submitted Application

1.5 Auto Dismantler Authority Contact List

1.6 General Requirements

1.7 On-Site Equipment Requirements

Section 2 Scheduling Procedures

2.1 Operational Hours

2.2 Letter of Eligibility

2.3 Open Appointments

Section 3 Dismantler Responsibilities

3.1 Signage and Advertisement

3.2 Dismantler Scheduling

3.3 Required Procedures

3.4 Verification of Applicant and Vehicle

3.5 Vehicle Equipment and Operational Requirements

3.6 Vehicle Data Information Sheet

3.7 Dismantler Outbids CAP

3.8 Vehicle Tracking Number (CAP ID)

3.9 Documentation Submitted to CAP

3.10 Metal Separation

3.11 Authorized Parts for Removal and Resale

3.12 Vehicle Storage

3.13 Payment to Vehicle Owner

3.14 Name, Address, Ownership Change

3.15 Audits

10949 North Mather Boulevard, Rancho Cordova, CA 95670 Toll-Free (866) 272-9642 Local (916) 403-8800 | www.bar.ca.gov

3.16 Dismantler Invoicing Procedures

3.17 Documentation Retention

3.18 Program Integrity

3.19 Confidentiality

3.20 Vehicles for Automotive Technician Training Programs

APPENDICES: Sample Forms Appendix A:Contact List Appendix B:Vehicle Retirement Flow Chart…………………………………………..…..24 Appendix C:Letter of Eligibility (Vehicle Retirement/EFMP) ........................... ……25-26 Appendix D:Vehicle Data Information Sheet .................................................. .……….27 Appendix E:Vehicle Retirement Purchase Log. ............................................. .……….28 Appendix F:Vehicle Retirement Crush Log .................................................... ..………29 Appendix G:Frequently Asked Questions ..................................................... ..…..30-32 Appendix H:Dismantler Invoice Form (Vehicle Retirement/EFMP) ................ ..…..33-34 Appendix I:Consumer Assistance Program Application (English/Spanish).…...….35-38 Appendix J:Vehicle Retirement-Eligibility Requirements…………………………....39-43 Appendix K:Dismantler Invoice Cover Sheet…..…………………………..………....….44 Appendix L: The Cars for Schools (CFS) Program Checklist………………….……45-46

Consumer Assistance Program Vehicle Retirement Program Operations Manual Revised January 2025

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Section 1 Administrative Process

1.1 BAR/CAP Responsibilities

The Bureau of Automotive Repair (BAR), Consumer Assistance Program (CAP) currently administers vehicle retirement through two separately funded programs, Vehicle Retirement (VR) and the Enhanced Fleet Modernization Program (EFMP). EFMP expands the vehicle retirement program to include many vehicles that do not currently require a biennial smog certificate. BAR is responsible for:

• Administering the auto dismantler contracts.

• Processing CAP applications to determine eligibility.

• Establishing policies and procedures as contained in this Vehicle Retirement

Program Operations Manual (Operations Manual).

• Authorizing payment amounts for approved vehicles.

• Responding to program-related questions.

• Approving invoices for payment, conducting dismantler site inspections.

• Performing other CAP administrative functions.

1.2 CAP Hours of Operation

CAP operates Monday through Friday, from 8:00 a.m. to 5:00 p.m., excluding state holidays. A list of state holidays is available on the California Department of Human Resources website at www.calhr.ca.gov.

1.3 Obtaining and Submitting an Application

Consumers can obtain and submit applications for the Vehicle Retirement Program online at www.bar.ca.gov . Applying online is the preferred method and may result in faster processing.

For those unable to apply online, applications can be requested by calling CAP at (866) 272-9642 to have an application mailed to them. Agents are available to answer calls Monday through Friday from 8:30 am-4:30 am, excluding state holidays.

Alternatively, applications may be mailed to:

Bureau of Automotive Repair Consumer Assistance Program

10949 North Mather Blvd. Rancho Cordova, CA 95670 http://www.smogcheck.ca.gov/

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1.4 Status of Submitted Application

Applicants may call CAP at 916.403.8800, toll-free at 866.272.9642, or visit www.bar.ca.gov to inquire about the status of their application.

1.5 Auto Dismantler Authority Contact List

Initial Submission of Contact Information At least one week prior to the effective date of their contract with BAR, CAP contracted auto dismantlers (dismantlers) shall submit a letter on company letterhead via email to cap.vrp@dca.ca.gov listing the individual(s) who will be responsible for making decisions at each dismantler site, including but not limited to: purchasing vehicles, issuing payments to consumers, and completing applicable documents.

Updates and Revisions to Contact Information If the listed individual(s) change, the dismantler shall submit the updated contact information within one week to the same email address.

1.6 General Requirements

Compliance with Standard Contract Agreement Dismantlers shall comply with the Standard Contract Agreement (contract) with BAR and follow all statutes, regulations, rules, and policies that govern the operations of a licensed dismantler. Violations of the contract between the dismantler and BAR may result in termination of the contract and/or other contractually prescribed penalties.

DMV License Requirements A copy of the current Department of Motor Vehicles (DMV) dismantler license shall be provided to CAP upon execution of the contract agreement and any time the license is renewed.

Retention of Operations Manual Dismantler sites shall retain a copy of the most current version of this Operations Manual and follow all policies and procedures within it. The dismantler shall pass an initial inspection by CAP representatives after the contract is awarded and prior to accepting CAP vehicles (See section 3.15 for more detail).

Legal and Environmental Compliance Dismantlers shall comply with all applicable business and environmental laws, regulations, codes, and permit requirements. This shall include but not be limited to:

federal, state, county and city hazardous material regulations and any local agency soil, surface, and ground water contamination regulations (See section 3.15).

ADA Compliance/Customer Facilities Dismantlers shall comply with all accessibility requirements of the Americans with Disabilities Act (ADA).

mailto:cap.vrp@dca.ca.gov

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Customer Transaction and Waiting Area Requirements The parking lot shall have the number of disabled parking places required by law and local ordinance.

The customer transaction and waiting area shall be accessible by wheelchair from the parking area.

Dismantlers must provide a covered waiting area for CAP applicants.

This area must include at least one ADA-compliant restroom equipped with running water.

Fraud and Misleading Statements Dismantlers shall not issue, publish, or make any statement, written or oral, which is untrue or misleading or participate in conduct which constitutes fraud or gross negligence.

1.7 On-Site Equipment Requirements

Required Equipment and Personnel Dismantlers shall have on-site all equipment, supplies, and personnel necessary to process retired vehicles in a lawful manner. This shall include permanent on-site equipment capable of rendering retired vehicles permanently and irreversibly incapable of functioning as originally intended. Dismantlers shall crush a retired vehicle to at least one-half the vehicle’s original height by the use of a vehicle crusher, vehicle shredder, vehicle logger, excavator or other equipment capable of crushing a vehicle to the specified requirements and damaging the vehicle in such a way that most body and running gear parts are unusable. Each dismantler site shall have personnel available on weekdays to crush any vehicles purchased through CAP. The required equipment shall be capable of crushing any vehicle with a gross vehicle weight rating (GVWR) of 10,000 pounds or less. If a dismantler has multiple sites, each site shall have the required equipment.

Computer System and Software Dismantlers shall have on-site: a computer system for data storage of information pertaining to retired vehicles, a copy machine, and a facsimile machine. The dismantler shall have the ability to receive telephone calls and answer questions from the public.

Each dismantler shall have internet access along with the appropriate hardware and software to facilitate the daily exchange of information between the dismantler and CAP.

The dismantler’s computer system software shall include an Edge, Chrome, Safari, or Firefox Internet web browser (version must be supported by releasing company), Microsoft Word and Microsoft Excel programs.

Equipment Maintenance Dismantlers shall maintain all equipment in working order throughout the life of the contract.

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Section 2 Scheduling Procedures

2.1 Operational Hours

Business Hours and Vehicle Acceptance Dismantlers must be open during contracted business hours and have the ability each week to accept the number of CAP vehicles estimated in the contract.

Restrictions on Vehicle Crushing No vehicle(s) shall be crushed on Saturdays, Sundays, or state holidays unless authorized by CAP.

Notification Requirements Dismantlers must provide forty-eight (48) hours’ notice to CAP if their business will not be able to accept vehicles. Dismantlers must post a notice for the general public including an alternative date and hours of operation when vehicles will be accepted for vehicle retirement. If the site entrance, parking, or waiting area locations must be changed, dismantlers must notify CAP in advance.

Unexpected Closures If the site closes unexpectedly, the phone message should be updated to reflect the change, and CAP should be notified.

2.2 Letter of Eligibility

Issuance of LOE CAP mails a Letter of Eligibility (LOE) to applicants who have met the eligibility requirements for vehicle retirement under CAP for VR or EFMP.

Identification of EFMP LOE The LOE for the EFMP will be marked with the letters “EFMP” on the top right-hand side of the letter, underneath the State Seal, to distinguish it from a VR LOE.

2.3 Open Appointments

Acceptance of CAP-Approved Applicants Dismantlers must accept CAP-approved applicants and their vehicles during contracted business hours. Approved applicants with an LOE may confirm contracted dismantler locations and their days and hours of operation on the CAP website.

No Appointments Necessary Approved applicants, those who have received an LOE, are free to select the dismantler location of their choice and arrive at a dismantler any time during the contracted hours of operation without an appointment.

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Section 3 Dismantler Responsibilities

3.1 Signage and Advertisement

Posting of CAP Signs and Banners Dismantlers shall prominently post signs provided by CAP in the area where the approved applicant presents the CAP vehicles for the dismantler to purchase for CAP. Dismantlers shall display CAP-provided posters and banners at a location viewable by customers or as agreed upon by the dismantler and CAP in accordance with any city or county ordinances.

CAP Rack Cards Dismantlers must maintain a supply of CAP rack cards, containing information on how to apply to the program, and provide them to individuals upon request.

3.2 Dismantler Scheduling

Coordination with CAP Auto dismantlers shall coordinate a schedule with CAP to retire approved vehicles in accordance with the contract.

Employee Responsibilities Dismantler employees shall be responsible for meeting the person(s) retiring a vehicle at the dismantler site during contracted business hours to receive and purchase vehicles for

CAP.

Staffing Requirements Dismantlers shall have sufficient qualified employees available during the scheduled time to handle the scheduled workload. These employees will be responsible for:

• Determining the eligibility of the approved applicant(s) and their vehicle

• Inspecting the vehicle

• Issuing payment check to approved applicant(s)

3.3 Required Procedures

Compliance and Understanding Dismantlers must comply with all procedures in this document. Dismantler employees must have an understanding of the VR Program requirements, as described in this manual.

Interaction with CAP Applicants Employees shall meet and greet CAP applicants (and those who express an interest in CAP) to answer program-related questions in a courteous and professional manner.

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Identity and Document Verification Dismantler employees shall verify that the person identified in the LOE is the same person as shown on the government issued photo identification (i.e., driver license, passport, military identification, etc.) or the representative on the original DMV Power of Attorney (POA) form authorized to complete the transaction. The owner’s name on the vehicle title must match the name of the approved applicant on the LOE.

Dismantlers shall not retain copies of photo identifications.

Handling LOEs and Vehicle Acceptance Dismantlers shall only accept an original LOE. Dismantlers shall keep the original LOE at each site, unless a dismantler has multiple sites, then the dismantler must keep copies at each site and send the original to the dismantler’s corporate office.

Dismantlers shall only accept vehicles for retirement that CAP has approved and that meet the equipment and operational requirements for vehicle retirement. Violations of the contract or this Operations Manual may be cause for contract termination.

As Per DMV California Vehicle Code §11520, dismantlers shall destroy all license plates that are left on or in any vehicle the dismantler purchases for CAP.

Certification and Documentation The dismantler and the vehicle owner or person designated by the owner through a POA, shall certify the vehicle purchase by signing and dating the Vehicle Data Information Sheet (VDIS). The dismantler shall return the original VDIS to CAP, maintain a copy, and provide a signed copy to the vehicle owner. If the vehicle does not qualify for vehicle retirement, dismantlers shall mark ‘rejected’ on the purchase log and return the LOE to the vehicle owner or designee.

Daily Record-Keeping On a daily basis, dismantlers shall record the vehicle inspection results on the Vehicle Retirement Purchase Log (VRPL) form (e.g., purchased, outbid and amount paid, rejected and reason for rejection).

Payment and Vehicle Marking Once the vehicle meets the equipment and operational requirements and passes inspection, dismantlers shall issue payment, in the form of a check, to the vehicle owner using the name(s) as stated on the LOE. The amount of the payment to the consumer is indicated on the LOE and determined by the contract.

Dismantlers shall affix a tracking number to the CAP vehicle at the lowest spot on both rear quarter panels, vehicle hood, and at least one bumper. The letters ‘BAR’ and the CAP-tracking number must be visible for identification at all times. In addition to the CAP-tracking number, CAP vehicles shall be marked with a large “X” (At least 12 inches height) on all the doors and the hood. (See section 3.8 for more detail)

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Vehicle Storage and Protection Prior to crushing, dismantlers shall store CAP-approved vehicles separately from all other non-CAP vehicles in a secure area away from public access. The location of this area must be mutually agreed upon between CAP auditors and the dismantler.

Dismantlers shall use due diligence in protecting the vehicles from public access, removal of unauthorized parts (as described in sect 3.11), theft, and/or unauthorized removal.

Dismantlers shall be responsible for keeping an inventory of uncrushed vehicles and shall immediately notify CAP management and law enforcement if an uncrushed vehicle is stolen.

Communication and Data Transmission Dismantlers shall have the ability to receive telephone calls and answer questions from the public. Dismantler sites shall transmit vehicle purchase and crush data to CAP via email using the standardized CAP Vehicle Retirement Purchase and Crush Log forms.

These forms must be filled out completely and accurately. Dismantlers shall transmit data to CAP no later than the close of business the next business day. Dismantlers shall utilize software which is compatible with the forms provided by CAP, e.g. Microsoft Excel 2010 and Microsoft Word 2010.

Vehicle Crushing Schedule Dismantlers shall crush the vehicle no later than ten (10) calendar days after accepting the vehicle or ten (10) calendar days after the title has cleared. Dismantlers shall establish a crush schedule agreed upon by CAP.

No vehicle shall be crushed on Saturdays, Sundays, or state holidays unless authorized by CAP. If an established crush date falls on a state holiday, the vehicle(s) shall be crushed on another day in the same week, as agreed upon by the dismantler and CAP.

3.4 Verification of Applicant and Vehicle

Initial Verification Process Dismantler employees shall review the vehicle retirement inspection process with the approved applicant or their designee and answer any related questions.

Dismantler employees shall request the CAP LOE, vehicle title, and registration. The person(s) named on the LOE must show their driver license or other government-issued photo identification to the dismantler employee. The name(s) on the LOE, vehicle title/registration, and photo identification(s) must match.

The Vehicle Identification Number (VIN) of the vehicle delivered must match the VIN on the LOE.

Verification of Designees If it is necessary for the registered owner(s) to have another person deliver the vehicle to the dismantler, the designee must provide a completed DMV Power of Attorney (POA)

-11-form (REG 260 or REG 262) with an original signature. The designee must show his/her driver license or other government-issued photo identification, as well as a copy of the registered owner(s) government-issued photo identification.

The designee’s government-issued photo identification must match the person described as the designee on the POA.

Verification of Multiple Registered Owners Following are examples of multiple registered owners listed on DMV records:

• "Joe Smith and Mary Smith" – both owners must be present at the dismantler and present the driver license or other government-issued photo identification of both parties.

• "Joe Smith/Mary Smith" – requires both owners to be present at the dismantler and present the driver license or other government-issued photo identification of both parties.

• "Joe Smith or Mary Smith" – either owner can be present at the dismantler and present his/her driver license or other government- issued photo identification.

Dismantlers shall not retain photocopies of the registered owner(s) and/or designee’s driver license or other government-issued photo identification.

Deceased Applicant Procedure When a dismantler receives an LOE where one or more of the applicants is deceased:

The dismantler shall reject the LOE, if:

• The sole vehicle owner listed on the LOE is deceased

• One of multiple registered owners is deceased and the registration lists the owners as “Owner 1 AND Owner 2”

(When rejecting an LOE for these reasons, advise the new owner to apply for change of ownership with DMV and reapply to CAP)

The dismantler may accept the LOE, if:

• One of multiple registered owners is deceased and the registration lists the owners as “Owner 1 OR Owner 2”

LOE Authenticity Concerns The LOE is printed on blue security paper. Dismantlers shall contact CAP staff if there is a question of the letter’s authenticity or a counterfeit is suspected.

Handling Voided LOEs For Vehicles Delivered Monday through Friday:

If the registered owner(s) or designee delivers the vehicle for retirement between Monday through Friday, with the word “VOID” on the LOE, the dismantler shall contact CAP to verify the registered owner’s and vehicle’s eligibility.

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If the voided LOE has been embossed with the BAR/CAP seal, the dismantler shall accept the LOE as authentic.

For Vehicles Delivered on Weekends or State Holidays:

If the registered owner(s) or designee delivers the vehicle for retirement on a Saturday, Sunday or state holiday, the dismantler shall accept a LOE marked with the words “VOID” provided it has been embossed with the BAR/CAP seal.

If a LOE with the word “VOID” has not been embossed with the BAR/CAP seal, the dismantler shall notify the person presenting the vehicle that CAP is closed on weekends and state holidays. They will be required to return with the vehicle at a time when the dismantler can contact CAP in order to verify the vehicle owner’s and vehicle’s eligibility.

LOE Expiration The LOE is valid through the expiration date referenced on the LOE. If an expired LOE is presented, the dismantler shall reject the vehicle or contact CAP for further direction.

VIN Verification When the Vehicle Identification Number (VIN) on the LOE matches the VIN on title, but does not match the VIN on vehicle:

• If the dismantler employs a DMV-authorized VIN verifier, they may use them to verify the VIN. Once the VIN is verified, the dismantler can purchase the vehicle.

• If the dismantler does not employ a DMV-authorized VIN verifier, they must reject the vehicle and refer the approved applicant to DMV to correct the documentation discrepancy.

When the VIN on the LOE does not match the VIN on title or VIN on vehicle:

• Dismantlers shall contact CAP to verify information.

Managing Document Deficiencies If there are any deficiencies in the required documents, the dismantler will provide the applicant with information to either correct the documents or advise applicant to contact CAP. Dismantler shall document on the Vehicle Retirement Purchase Log form if a vehicle is rejected.

Processing Out-of- State Titles Before purchasing the vehicle, dismantlers may require an applicant with an out-of-state title to obtain a DMV “Revivable Junk Receipt.”

3.5 Vehicle Equipment and Operational Requirements

If the vehicle documentation requirements are met, dismantler employees will inspect the vehicle to determine if the following components are present and the vehicle meets the operational requirements listed below.

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Equipment Requirements Verify that the vehicle meets the following equipment requirements:

• All doors are present

• Hood lid is present

• Dashboard is present

• Windshield is present

• At least one side window glass is present

• Driver’s seat is present

• At least one bumper is present

• Exhaust system is present

• All side and/or quarter panels are present

• At least one headlight, one taillight, and one brake light are present

Rejection of Vehicle Due to Equipment Deficiencies Dismantlers shall reject the vehicle if any of the above equipment requirements are not met.

Documentation of Missing but Unrequired Equipment Dismantlers shall note on the VDIS form, any missing vehicle parts that might be questioned during an audit by CAP (e.g., taillight, air pump, air conditioning compressor, seat, etc.).

Operational Requirements Verify that the vehicle meets the following operational requirements:

• Vehicle must be driven to an approved auto dismantler under its own power.

Vehicles towed to the auto dismantler site for any reason shall be rejected from the Vehicle Retirement Program. However, if the vehicle is driven to the site under its own power on a subsequent day prior to LOE expiration, the site may continue the retirement process.

• Vehicle engine starts readily through ordinary means without the use of starting fluids or external booster batteries.

• Vehicle drivability is not affected by any body, steering, or suspension damage.

• Vehicle is able to drive forward a minimum distance of 10 yards under its own power.

• Interior pedals are operational.

Rejection of Vehicle Due to Operational Deficiencies Dismantlers shall reject the vehicle if any of the above operational requirements are not met.

Dismantlers shall note any operational problems on the VDIS and Vehicle Retirement Purchase Log form.

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3.6 Vehicle Data Information Sheet

Certification Process The dismantler and the approved applicant(s) or their designee shall certify the vehicle inspection results by completing, signing, and dating the VDIS. The dismantler is certifying that the person(s) and the vehicle described on the LOE, is/are the same person(s) or is represented by an authorized designee, and the vehicle presented is the same vehicle as described on the LOE.

Payment Information If the vehicle qualifies for purchase by the dismantler, the dismantler completes the payment information which includes the date of payment, check number, and the dollar amount paid to the applicant. A dismantler employee shall sign the bottom of the VDIS under penalty of perjury indicating they have verified that the consumer on the log is the same person on the driver license or other government-issued photo identification, or the DMV POA form. The check will only be issued in the registered owner’s name as shown on the LOE. Dismantlers shall return the original VDIS to CAP at the time of invoicing, maintain a copy, and provide a signed copy to the vehicle owner.

Handling Non-Qualifying Vehicles If the vehicle does not qualify for the Vehicle Retirement Program, the dismantler shall indicate on the Vehicle Retirement Purchase Log form, the specific reasons why the vehicle did not pass the equipment and/or operational requirements. For a non-qualifying vehicle, the dismantler shall return the LOE to the vehicle owner or designee.

3.7 Dismantler Outbids CAP

Outbidding CAP If a dismantler determines that the vehicle is greater in value than the currently offered CAP price, a dismantler may outbid CAP to purchase the vehicle.

Purchasing Rejected Vehicles Dismantlers may purchase a vehicle that is rejected for not meeting CAP’s vehicle equipment or operational requirements. The dismantler must indicate on the VDIS the reason(s) for the rejection.

Use of Outbid or Rejected Vehicles If a vehicle is outbid or rejected and purchased by the dismantler, the dismantler may take parts for resale or reuse, as these vehicles do not fall under CAP regulations.

Documentation Requirements Dismantlers shall specify any vehicles that have been outbid or rejected on the Vehicle Retirement Purchase Log form.

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3.8 Vehicle Tracking Number (CAP ID)

Marking Requirements The letters “BAR” and the CAP-tracking number (CAP ID) shall be written on:

• The hood

• At least one bumper

• On the lowest point on both rear quarter panels

Visibility

• The CAP ID must be easily visible from a distance of at least 10 feet.

• The CAP ID is located on the approved applicant’s LOE.

• The CAP ID on the vehicle must be visible for identification at all times.

Additional Marking In addition to the tracking number, CAP vehicles shall be marked with a large “X” (At least 12 inches in height) on all the doors and the hood using a color that contrasts with the vehicle’s paint color.

3.9 Documentation Submitted to CAP

The dismantler’s designated on-site employee shall complete and submit individually by program (VR and EFMP), the following:

Vehicle Retirement Purchase Log

• E-mail the Vehicle Retirement Purchase Log form to CAP. This form must be filled out completely and accurately using the standardized forms provided by CAP and transmitted by close of business the following business day after the vehicle is purchased.

Vehicle Retirement Crush Log

• E-mail the Vehicle Retirement Crush Log form by close of business the following business day after the vehicle is crushed. This form must be filled out completely and accurately using the form provided by CAP.

Invoices

• Invoices for retired vehicles shall be submitted by mail no more frequently than weekly on CAP provided forms.

VDIS

• Submit the original VDIS with the invoices for retired vehicles.

3.10 Metal Separation

Dismantlers may separate ferrous and non-ferrous metals prior to crushing CAP vehicles.

Dismantlers may not separate parts for the purpose of re-coring or rebuilding. If engines, transmissions, and/or differentials are separated from the vehicles, the dismantler shall render them useless.

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3.11 Authorized Parts for Removal and Resale

Dismantlers, agents, contractors, or their employees shall not remove any parts from a CAP purchased vehicle for resale or reuse except for the following:

• Tires

• High voltage batteries (e.g., from hybrids)

• Batteries

• Audio equipment

3.12 Vehicle Storage

Secure and Separate Storage Dismantlers shall store CAP vehicles separate from all other vehicles and in a secure area away from public view. The location of this area must be mutually agreed upon between CAP and the dismantler.

Protection of Vehicles Dismantlers shall use due diligence in protecting the vehicles from public access, removal of unauthorized parts, theft, and/or unauthorized removal. CAP vehicles shall be marked in accordance with Section 3.8 of the Operations Manual.

3.13 Payment to Vehicle Owner

Issuance of Payments Dismantlers shall issue payment in the form of a check to the registered vehicle owner(s) listed on the LOE at the time the vehicle is accepted for retirement. The amount of the check shall be the amount shown on the LOE, and as described in the contract.

Payment Conditions Dismantlers shall not postdate or delay the issuance of a check to an approved applicant.

Dismantlers shall not issue a check that has insufficient account funds.

3.14 Name, Address, Ownership Change

Non-Transferability of Contract The contract is non-transferable. Any change in business ownership or ownership structure will invalidate the contract.

Changes Requiring Amendment A change of the dismantler’s business name and/or address does not require a new contract but will require an amendment to reflect the change. Contact CAP within forty-eight (48) hours regarding any of these changes.

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3.15 Audits

Initial Inspection Each auto dismantler site shall pass an initial inspection by CAP representatives after the contract is awarded and prior to accepting vehicles. The dismantler shall comply with all federal and state laws, including but not limited to county and city hazardous materials regulations and any local agency soil, surface, and ground water contamination regulations.

The initial inspection will verify the dismantler is equipped and ready to process CAP VR vehicles. The inspection will consist of several key areas, including but not limited to the following:

1. Invoices/Paperwork/ Records

• The dismantler will be required to have the proper forms.

• The dismantler must demonstrate the ability to process the paperwork, store records and produce invoices.

2. Equipment/Operational Requirements

• The dismantler will be required to have the required equipment and personnel necessary to receive and process CAP VR vehicles, including the vehicle crushing equipment as referenced in section 1.8.

3. Yard/Vehicle Inspection

• The dismantler will have a designated area to receive, inspect, and securely store VR vehicles away from the general public.

• The consumer area will be fully compliant with ADA requirements.

4. Knowledge Verification

• The initial inspection will verify the dismantler’s personnel are knowledgeable on how to completely process a VR vehicle from start to finish.

Periodic Audits CAP will also conduct periodic audits of dismantler sites during the contract period. These audits are intended to ensure compliance with all program requirements.

Each dismantler shall allow CAP representatives unrestricted access to all areas of the dismantler yard. The dismantler shall allow CAP representatives access to inspect and audit any and all vehicles and records pertaining to CAP, including those vehicles that applied to CAP but were purchased by the dismantler (As part of the outbidding process as described in section 3.7).

Documentation of Deficiencies During an audit, any deficiencies shall be documented by the CAP representative. The CAP representative will discuss any deficiencies with dismantler employees. A follow-up inspection may be conducted by the CAP representative to determine contract compliance.

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Contract Violations If a dismantler violates any terms of the contract, including but not limited to removal of vehicle parts for reuse/sale, accepting vehicles not having required equipment or not passing a functional test, falsification of records, failure to follow any prescribed procedures including but not limited to postdating checks, writing checks that have insufficient funds, failure to notify CAP of insufficient staff to handle workload, missing records, failure to crush CAP approved vehicles within the required timeframe, reporting vehicles as crushed that are not crushed, incomplete or inaccurate paperwork or lack of coordination regarding required notifications, BAR may terminate the contract.

3.16 Dismantler Invoicing Procedures

Verification System Dismantlers shall create a system to verify that each vehicle purchased is crushed without any unauthorized parts removed from the vehicle and in accordance with the procedures outlined in this Operations Manual. The Vehicle Retirement Purchase Log and Crush Log forms shall be completed by a dismantler employee having firsthand knowledge of the vehicles being crushed on the specified date and location of the crush.

Invoice Submission Dismantlers shall complete and submit the Dismantler Invoice forms, separately by program (VR and EFMP). All invoices shall include the following:

• Dismantler Invoice Cover Sheet.

• The top portion of the invoice form completed with the appropriate site number assigned to the dismantler location.

• The date the dismantler purchased and crushed the vehicle with no more than ten vehicles listed per page.

• The funding source for payment (VR or EFMP). Note: Invoices must be submitted separately by funding source.

• The CAP ID

• The VIN.

• The state contribution amount paid to the consumer, the administrative fee, and the total due to the dismantler.

• The signature of an authorized dismantler representative, invoice date, and contact phone number.

• The VDIS for each vehicle purchased.

NOTE: Submit single copies of invoices. Incomplete, incorrect, and/or illegible invoices will cause delay in payment.

Dismantlers with Multiple Sites Dismantlers with multiple sites shall submit invoice forms together with a Dismantler Invoice Cover Sheet indicating the contract number and total amount of all invoices attached. However, each site shall have a separate invoice form. Single site dismantlers must also submit invoices with a Dismantler Invoice Cover Sheet indicating the contract

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Send invoices to:

Bureau of Automotive Repair CAP/VRP Invoicing Unit

10949 North Mather Blvd. Rancho Cordova, CA 95670

For Reconciliation Purposes: A warrant is issued from the State Controller’s Office with an associated reference number. This reference number lists the program type, dismantler site number, invoice date, and a five-digit database identifier (e.g., EFMP-998- 11202018-56430 OR VR- 998-11202018-56431). Dismantlers can compare the program type, dollar amount, and date to the original invoice for reconciliation.

Fiscal Year Invoicing Vehicles purchased in different Fiscal Years, under different contract amendments, or different funding sources (VR or EFMP) shall be submitted on separate invoices. The Fiscal Year for the State of California begins on July 1 and ends on June 30.

3.17 Documentation Retention

Dismantlers shall retain copies of the following documents, separately for VR and EFMP, at the Corporate/Headquarters/Main office for three (3) years after contract termination (If a contractor has multiple sites, copies must be kept at each site for one year for audit purposes):

Required Documents

• Original Letters of Eligibility

• Copies of Vehicle Data Information Sheets

• Copies of DMV Revivable Junk Receipts (as applicable)

• Copies of Title/Registration

• Copies of Vehicle Retirement Purchase and Crush Log forms

• Original DMV Power of Attorney forms

• Copies of invoices billed to CAP for vehicle purchases and any administrative charges as specified in the contract (may be maintained at Corporate/Headquarters/Main office)

• Copies of checks disbursed to vehicles owners

• Records of payments from the state for the purchase of retired CAP vehicles (may be maintained at Corporate/Headquarters/Main office)

• DMV Statement of Facts form

Security and Organization CAP files should be kept away from public view in a secure/locking file and organized by date.

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Destruction of Records Dismantlers shall take all necessary steps to destroy or arrange for the destruction of CAP records containing personal information within its custody or control which is no longer to be retained at the sites by:

1. Shredding

2. Erasing or

3. Otherwise modifying the personal information in those records to make it unreadable through any means (See Section 3.19)

3.18 Program Integrity

Adherence to Policies and Procedures Dismantlers shall follow the policies and procedures outlined in this Operations Manual, including any amendments to this operations manual, or other updated procedural instructions from CAP.

Prohibition of Fraudulent Conduct Dismantlers shall not make or authorize any statement, written or oral, that is untrue or misleading or engage in any other conduct which constitutes fraud.

3.19 Confidentiality

Security Precautions and Confidentiality Dismantlers are responsible for defining special security precautions that must be followed to ensure the integrity, security, and appropriate level of confidentiality of sensitive and personal information of CAP consumers. It is expressly understood and agreed that all information received from the consumer is confidential.

Restricted Access and Disclosure Dismantlers agree to not disclose or otherwise permit access to CAP consumer’s sensitive and personal information by any other person or entity in any manner whatsoever, except that such disclosure or access shall be permitted to employees of the dismantler requiring access in fulfillment of the services provided under this contract or under a court order or search warrant. CAP is to be notified by the dismantler no later than the following business day if a release of documents is being allowed pursuant to a court order or search warrant.

Prohibited Uses of Sensitive and Personal Information Dismantlers shall not use CAP consumer’s sensitive and personal information or any part thereof in the performance of services to others or for the benefit of the dismantler or others in any form whatsoever whether gratuitously or for valuable consideration, except as permitted under the contract.

Incident Reporting Dismantlers shall notify CAP promptly and in writing of the circumstances surrounding

-21-any possession, use, theft or knowledge of CAP consumer’s sensitive and personal information or any part thereof by any person or entity other than those authorized under the contract agreement.

Loss of CAP Files or Vehicles Dismantlers shall notify CAP of any CAP files that have been removed, misplaced or stolen from the dismantler site within one business day of their knowledge or discovery.

Dismantlers shall notify CAP of any misplaced or stolen CAP vehicle within 12 hours of their knowledge or discovery. Dismantlers shall file a police/sheriff report and provide CAP a copy of the report within three (3) days or upon availability from the police/sheriff department.

3.20 Vehicles for Automotive Technician Training Programs

Overview At CAP’s request, as part of the Cars For Schools (CFS) Program, the dismantler will transfer title of selected vehicles, through a bill of sale for zero dollars or similar agreement, to designated colleges or school districts (schools) for use in their automotive technician training programs. The dismantler will be required to transfer no more than twelve (12) vehicles, per contracted location, in any 12-month period measured from the starting date of the contract. The schools will return these vehicles to the contractor at least thirty (30) days prior to the termination of the contract. The contractor will crush these vehicles within thirty (30) days of their return from the schools or within ten (10) days of the clearance of any necessary DMV transfer papers, whichever is later.

Process CAP representatives will provide the dismantler with a list of the vehicles needed by local automotive schools; the list shall specify the requested year, make, and model. When a vehicle of this type is purchased, the dismantler shall notify CAP by telephone or email.

At CAP’s request, the dismantler will put that vehicle on hold for the designated school.

The vehicles shall be marked in the same manner as described in section 3.8. Once the dismantler is instructed to hold the vehicle for a school, the vehicle shall also be marked with the word “Schools” on the four main body panels. The dismantler may also place a marker on the roof top of the vehicle.

Any vehicle held for a school must remain in the same condition as it was when purchased. The dismantler must not drain the fluids or remove any parts. The dismantler must ensure the vehicle is kept secure and protected from damage. After CAP requests the dismantler to hold a vehicle, the dismantler must then submit a request to the DMV for a non-revivable junk receipt and notify CAP once it is received. The vehicle is considered ready for pickup only after the non-revivable junk receipt has been obtained.

CAP representative will inspect the vehicle and take photos before the vehicle is released to the school.

Once the dismantler notifies CAP that the vehicle is ready, the school will arrange for pick

-22-up and transport of the vehicle within two weeks. If the school does not pick up the vehicle within two weeks, the dismantler may crush the vehicle and notify CAP that the transfer was unsuccessful.

Dismantlers shall transfer title to the school through a zero-dollar bill of sale or similar document. A copy of the bill of sale should be provided to the school and a copy kept for dismantler records. Additionally, the dismantler must email a copy of the completed bill of sale to carsforschools@dca.ca.gov.

Reporting and Billing Purchase logs and invoices will be prepared and submitted as described in Section 3.9.

The dismantler will mark “CFS” in the comments section of the purchase log. The “crush date” field of the invoice should be marked “CFS.” A copy of the bill of sale, fully completed with all necessary information, should be attached to the invoice.

Final Crush and Scrapping of Vehicles The school will return the retired vehicle to the same dismantler site from which it was obtained before May 31, 2028. The school will transfer ownership back to the dismantler through a zero-dollar bill of sale. The dismantler will crush the vehicles within thirty (30) days of return or within ten (10) days of DMV clearance. The crush must be documented in the crush log. The dismantler shall mark “CFS” in the comments field of the crush log.

The crush log should not be submitted until the vehicle is returned by the school and vehicle is crushed.

Cars for Schools (CFS) Program Checklist

For a detailed step-by-step guide to the Cars For Schools (CFS) program, please refer to Appendix (L) Cars for Schools (CFS) Program Checklist.

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Contact List

BUSINESS, CONSUMER SERVICES, AND HOUSING AGENCY • GAVIN NEWSOM, GOVERNOR

CONSUMER ASSISTANCE PROGRAM

10949 North Mather Boulevard, Rancho Cordova, CA 95670 Toll-Free (866) 272-9642 Local (916) 403-8800 | www.bar.ca.gov

Appendix A

Mailing Address: Bureau of Automotive Repair Consumer Assistance Program 10949 North Mather Blvd.

Rancho Cordova, CA 95670

CAP toll-free line: 866.272.9642 BAR/CAP Fax: 916.464.1503

VR Purchase/Crush Log E-mail Address:

BAR/CAP Contact:

BAR/CAP Contact:

Alternate BAR/CAP Contact:

Alternate BAR/CAP Contact:

Program Representative III (Supervisor):

Program Manager:

cap.vrp@dca.ca.gov

Chris Beatty

916.403.8713 (Office)

Erik Aragon

916.403.8704 (Office)

Azra Nasufovic

916.403.8718 (Office)

Mike Nguyen

916.403.8723 (Office)

Waiel Ahmed

916.403.8762 (Office)

Denise Cunningham mailto:cap.vrp@dca.ca.gov

Vehicle Retirement Flow ChartVehicle Retirement Flow Chart

CAP receives, processes/re-evaluates completed Vehicle Retirement application.

CAP receives, processes/re-evaluates completed Vehicle Retirement application.

Application approved?

Denial letter sent to consumer

Denial letter sent to consumer

Deficient letter sent to consumer

Deficient letter sent to consumer The consumer is sent a Letter of Eligibility

(LOE) and a list of the contracted auto dismantlers with days and hours of operation.

The consumer is sent a Letter of Eligibility (LOE) and a list of the contracted auto dismantlers with days and hours of operation.

The consumer takes the vehicle to the CAP contracted auto dismantler with the

LOE, proof of ownership and vehicle owner(s) driver license(s) or photo I.D. If consumer sends a representative, the representative must also provide a Power of Attorney (POA) form, copy of applicant’s

ID and show their own ID at time of retirement.

The consumer takes the vehicle to the CAP contracted auto dismantler with the

LOE, proof of ownership and vehicle owner(s) driver license(s) or photo I.D. If consumer sends a representative, the representative must also provide a Power of Attorney (POA) form, copy of applicant’s

ID and show their own ID at time of retirement.

Vehicle passes operational and visual inspection?

The dismantler indicates the reason the vehicle is not eligible for CAP on the Vehicle

Data Sheet and the Vehicle Retirement Purchase Log form.

The dismantler indicates the reason the vehicle is not eligible for CAP on the Vehicle

Data Sheet and the Vehicle Retirement Purchase Log form.

The auto dismantler and the consumer complete the Vehicle Data Sheet, sign and date the form. Consumer is provided a copy of the data sheet and is issued a check.

The auto dismantler and the consumer complete the Vehicle Data Sheet, sign and date the form. Consumer is provided a copy of the data sheet and is issued a check.

Vehicle ineligible to be retired through CAP.

The auto dismantler e-mails purchase log to BAR/CAP by the close of business the following business day.

The auto dismantler e-mails purchase log to BAR/CAP by the close of business the following business day.

The auto dismantler crushes vehicle within ten (10) days of purchase or ten (10) days after title has cleared whichever occurs first, emails the completed purchase log and crush log forms to BAR/CAP, and submits invoice for payment.

Appendix B

NO

YES

YESNO

Consumer provides additional information?

YES

NO

Dismantler outbids the State and purchases the vehicle. Amount of outbid is entered on the Vehicle Data Sheet and the Vehicle Retirement Purchase Log form.

Dismantler outbids the State and purchases the vehicle. Amount of outbid is entered on the Vehicle Data Sheet and the Vehicle Retirement Purchase Log form.

File abandoned after 30 days.

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Para obtener información en español sobre su elegibilidad, por favor llame a CAP en (866) 272-9642.

CAP ID# «CAPID» -25- «LetterPrintDate»

LETTER OF ELIGIBILITY FOR VEHICLE RETIREMENT

«LetterPrintDate»

«ConsumerLine» «AddressBlock»

CAP ID#:

VIN:

ELIGIBILITY AMOUNT:

EXPIRATION DATE:

«CAPID»

«VIN»

$«VRAmount» «Deadline»

«CustomText»

Your application for the Consumer Assistance Program (CAP) Vehicle Retirement Program has been approved. You must present this Letter of Eligibility by «Deadline» to a Bureau of Automotive Repair (BAR) contracted auto dismantler. Because financial assistance is based on the availability of funds, we encourage you to retire your vehicle as soon as possible.

Read this letter carefully and follow the steps listed below to complete the Vehicle Retirement process:

Step 1: Choose an auto dismantler authorized to retire your vehicle through CAP. The included list of BAR authorized dismantlers is also available online at www.bar.ca.gov or by calling (800) 952-5210.

Step 2: Contact the dismantler prior to arriving to ensure they accept CAP vehicles. Some auto dismantlers require appointments.

Step 3: You must drive the vehicle to the auto dismantler site under its own power. A vehicle towed to the auto dismantler site for any reason will be rejected. Note: The vehicle must be free of any personal items, trash and hazardous waste.

Step 4: You MUST provide the auto dismantler with ALL of the following documents:

1. This original Letter of Eligibility.

2. Your vehicle's California Certificate of Title (pink slip). If you do not have your original title, or the vehicle’s title is issued by a state other than California, or have an altered title, you MUST contact the dismantler you plan to visit for further instructions.

3. Your vehicle’s registration card.

4. Your valid driver's license or other government issued photo identification. (Some auto dismantlers may require you to complete a Privacy Notice.)

If any of the registered owners are not able to be present at the dismantler site, a completed and signed original DMV Power of Attorney (REG 260 or REG 262) form must be provided to the auto dismantler. The designee must present their driver’s license or other official photo identification, as well as a copy of the registered owner(s) photo identification.

Please note: You may be required to…