BILL NUMBER: AB 846	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 26, 2009

    An act relating to state agencies.   An act
to add Sections 25196.5 and 42402.6 to the Health and Safety Code, to
add Section 6437 to the Labor Code, and to add Section 13363 to the
Water Code, relating to civil and administrative penalties. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 846, as amended, Torrico. State agencies: civil and
administrative penalties.
    The Administrative Procedure Act contains provisions governing
the conduct of administrative adjudication for state agencies.
   This bill would  declare the intent of the Legislature to
enact subsequent legislation requiring state agencies that are
authorized to impose civil or administrative penalties for a
violation of a law, regulation, order, permit, or license that the
state agency is authorized to enforce, adopt, or issue, to take
specified actions with regard to the amount and collection of these
penalties   require the Department of Toxic Substances
Control, the State Air Resources Board, the Department of Industrial
Relations, and the State Water Resources Control Board to adjust the
maximum amounts of specified civil and administrative penalties to
  take into account inflation on an annual basis using the
Consumer Price Index, as provided. The bill would require, if a
penalty below these maximum levels is sought, that the penalty be
assessed at a level that recovers any economic benefits derived by
the violator, except as specified. Because local air districts and
unified program agencies would be subject to this requirement, this
bill would impose a state-mandated local program  . 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    This act shall be known, and may be
cited, as the California Civil Penalties Inflation Supplement and
Enforcement Act of 2009. 
   SEC. 2.    Section 25196.5 is added to the  
Health and Safety Code   , to read:  
   25196.5.  (a) (1) The department shall adjust on an annual basis
all civil and administrative penalties imposed pursuant to this
chapter to adjust the maximum amounts specified in this chapter to
take into account inflation using the Consumer Price Index for the
month of June of the year prior to the adjustment as compared with
June of the calendar year in which the amount of the penalty was last
established by legislation.
   (2) The amount of any penalties determined pursuant to this
subdivision shall be rounded as follows:
   (A) To the nearest multiple of ten dollars ($10) in the case of a
penalty less than or equal to one hundred dollars ($100).
   (B) To the nearest multiple of one hundred dollars ($100) in the
case of a penalty greater than one hundred dollars ($100) but less
than or equal to one thousand dollars ($1,000).
   (C) To the nearest multiple of one thousand dollars ($1,000) in
the case of a penalty greater than one thousand dollars ($1,000) but
less than or equal to ten thousand dollars ($10,000).
   (D) To the nearest multiple of five thousand dollars ($5,000) in
the case of a penalty greater than ten thousand dollars ($10,000) but
less than or equal to one hundred thousand dollars ($100,000).
   (E) To the nearest multiple of ten thousand dollars ($10,000) in
the case of a penalty greater than one hundred thousand dollars
($100,000) but less than or equal to two hundred thousand dollars
($200,000).
   (F) To the nearest multiple of twenty-five thousand dollars
($25,000) in the case of a penalty greater than two hundred thousand
dollars ($200,000).
   (b) If the department or a unified program agency seeks to impose
a penalty below the maximum levels set pursuant to this chapter, as
adjusted by subdivision (a), the department or unified program agency
shall calculate, and make express findings concerning, the economic
benefits, if any, derived by the violator from the acts that
constitute the violation. Liability shall be assessed at a level that
recovers those economic benefits, if any, unless the department or
unified program agency makes express findings that document that good
faith efforts to comply or inability to pay justify a reduction and
that the liability assessed will maintain the deterrent effect of the
penalty.
   (c) The department shall report to the Legislature on the
implementation of this section. 
   SEC. 3.    Section 42402.6 is added to the  
Health and Safety Code   , to read:  
   42402.6.  (a) (1) The state board shall adjust on an annual basis
all civil and administrative penalties imposed pursuant to this
division to adjust the maximum amounts specified in this division to
take into account inflation using the Consumer Price Index for the
month of June of the year prior to the adjustment as compared with
June of the calendar year in which the amount of the penalty was last
established by legislation.
   (2) The amount of any penalties determined pursuant to this
subdivision shall be rounded as follows:
   (A) To the nearest multiple of ten dollars ($10) in the case of a
penalty less than or equal to one hundred dollars ($100).
   (B) To the nearest multiple of one hundred dollars ($100) in the
case of a penalty greater than one hundred dollars ($100) but less
than or equal to one thousand dollars ($1,000).
   (C) To the nearest multiple of one thousand dollars ($1,000) in
the case of a penalty greater than one thousand dollars ($1,000) but
less than or equal to ten thousand dollars ($10,000).
   (D) To the nearest multiple of five thousand dollars ($5,000) in
the case of a penalty greater than ten thousand dollars ($10,000) but
less than or equal to one hundred thousand dollars ($100,000).
   (E) To the nearest multiple of ten thousand dollars ($10,000) in
the case of a penalty greater than one hundred thousand dollars
($100,000) but less than or equal to two hundred thousand dollars
($200,000).
   (F) To the nearest multiple of twenty-five thousand dollars
($25,000) in the case of a penalty greater than two hundred thousand
dollars ($200,000).
   (b) If the state board or a district seeks to impose a penalty
below the maximum levels set pursuant to this division, as adjusted
by subdivision (a), the state board or district shall calculate, and
make express findings concerning, the economic benefits, if any,
derived by the violator from the acts that constitute the violation.
Liability shall be assessed at a level that recovers those economic
benefits, if any, unless the state board or district makes express
findings that document that good faith efforts to comply or inability
to pay justify a reduction and that the liability assessed will
maintain the deterrent effect of the penalty.
   (c) The state board shall report to the Legislature on the
implementation of this section. 
   SEC. 4.    Section 6437 is added to the  
Labor Code   , to read:  
   6437.  (a) (1) The department shall adjust on an annual basis all
civil and administrative penalties imposed pursuant to this part to
adjust the maximum amounts specified in this part to take into
account inflation using the Consumer Price Index for the month of
June of the year prior to the adjustment as compared with June of the
calendar year in which the amount of the penalty was last
established by legislation.
   (2) The amount of any penalties determined pursuant to this
subdivision shall be rounded as follows:
   (A) To the nearest multiple of ten dollars ($10) in the case of a
penalty less than or equal to one hundred dollars ($100).
   (B) To the nearest multiple of one hundred dollars ($100) in the
case of a penalty greater than one hundred dollars ($100) but less
than or equal to one thousand dollars ($1,000).
   (C) To the nearest multiple of one thousand dollars ($1,000) in
the case of a penalty greater than one thousand dollars ($1,000) but
less than or equal to ten thousand dollars ($10,000).
   (D) To the nearest multiple of five thousand dollars ($5,000) in
the case of a penalty greater than ten thousand dollars ($10,000) but
less than or equal to one hundred thousand dollars ($100,000).
   (E) To the nearest multiple of ten thousand dollars ($10,000) in
the case of a penalty greater than one hundred thousand dollars
($100,000) but less than or equal to two hundred thousand dollars
($200,000).
   (F) To the nearest multiple of twenty-five thousand dollars
($25,000) in the case of a penalty greater than two hundred thousand
dollars ($200,000).
   (b) If the division seeks to impose a penalty below the maximum
levels set pursuant to this part, as adjusted by subdivision (a), the
division shall calculate, and make express findings concerning, the
economic benefits, if any, derived by the violator from the acts that
constitute the violation. Notwithstanding any other provision of
law, liability shall be assessed at a level that recovers those
economic benefits, if any, unless the division makes express findings
that document that good faith efforts to comply or inability to pay
justify a reduction and that the liability assessed will maintain the
deterrent effect of the penalty.
   (c) The department shall report to the Legislature on the
implementation of this section. 
   SEC. 5.    Section 13363 is added to the  
Water Code   , to read:  
   13363.  (a) (1) The state board shall adjust on an annual basis
all civil and administrative penalties imposed pursuant to this
division to adjust the maximum amounts specified in this division to
take into account inflation using the Consumer Price Index for the
month of June of the year prior to the adjustment as compared with
June of the calendar year in which the amount of the penalty was last
established by legislation.
   (2) The amount of any penalties determined pursuant to this
subdivision shall be rounded as follows:
   (A) To the nearest multiple of ten dollars ($10) in the case of a
penalty less than or equal to one hundred dollars ($100).
   (B) To the nearest multiple of one hundred dollars ($100) in the
case of a penalty greater than one hundred dollars ($100) but less
than or equal to one thousand dollars ($1,000).
   (C) To the nearest multiple of one thousand dollars ($1,000) in
the case of a penalty greater than one thousand dollars ($1,000) but
less than or equal to ten thousand dollars ($10,000).
   (D) To the nearest multiple of five thousand dollars ($5,000) in
the case of a penalty greater than ten thousand dollars ($10,000) but
less than or equal to one hundred thousand dollars ($100,000).
   (E) To the nearest multiple of ten thousand dollars ($10,000) in
the case of a penalty greater than one hundred thousand dollars
($100,000) but less than or equal to two hundred thousand dollars
($200,000).
   (F) To the nearest multiple of twenty-five thousand dollars
($25,000) in the case of a penalty greater than two hundred thousand
dollars ($200,000).
   (b) If the state board or a regional board seeks to impose a
penalty below the maximum levels set pursuant to this division, as
adjusted by subdivision (a), the state board or regional board shall
calculate, and make express findings concerning, the economic
benefits, if any, derived by the violator from the acts that
constitute the violation. Liability shall be assessed at a level that
recovers those economic benefits, if any, unless the state board or
regional board makes express findings that document that good faith
efforts to comply or inability to pay justify a reduction and that
the liability assessed will maintain the deterrent effect of the
penalty.
   (c) Except as provided in subdivision (k) of Section 13350 and
paragraph (2) of subdivision (n) of Section 13385, proceeds from the
implementation of subdivision (a) resulting from the increased amount
of a civil penalty shall be deposited in a separate account, the
Clean Water Civil Penalty Inflation Account, which is hereby created
in the General Fund, to be expended, upon appropriation by the
Legislature, consistent with Section 13441.
   (d) The state board shall report to the Legislature on the
implementation of this section. 
   SEC. 6.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  
  SECTION 1.    The Legislature hereby declares its
intention to enact subsequent legislation to require all state
agencies that are authorized to impose civil or administrative
penalties for a violation of a law, regulation, order, permit, or
license that the state agency is authorized to enforce, adopt, or
issue, to do all of the following:
    (a) Regularly adjust the amount of civil and administrative
penalties to reflect changes in the cost of living.
    (b) Require the assessment and adjustment of civil and
administrative penalties that, to the maximum extent permitted by
law, deprive the violator of any economic benefit or savings
resulting from noncompliance.
   (c) Maintain the deterrent effect of civil and administrative
penalties and promote compliance with the law.
    (d) Improve the collection of civil and administrative penalties.

    (e) Require state agencies to report to the Legislature on
compliance with these requirements.