California DMV ripped me out of my parts.

Something else is going on here. You don’t need a license to dismantle a vehicle, but...you need the title to be in your name, the plates, and all DMV fees up to date and paid. As for selling the parts, that’s a whole other story, seller’s permit, maybe a business license, and whatever else the State AND County or City requires. Maybe he was dismantling a lot of vehicles, business style. Code Enforcement is on a terror in Southern California. They’re going deep into the codes and writing people up, left and right, for all sorts of things. It’s all about the $’s.
I'll bet there is more to this story than is being told. I've lived in Calif most of my life and no one has ever bothered me concerning selling car parts. In fact, some of my buyers were policemen.