BILL NUMBER: AB 846 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 1, 2009
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Torrico
FEBRUARY 26, 2009
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 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 and minimum 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 minimum, 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: yes.
State-mandated local program: 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 and minimum 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 At
a minimum, liability shall be assessed at a level that
recovers those economic benefits , 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 and minimum 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 At a minimum, liability
shall be assessed at a level that recovers those economic
benefits , 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 and minimum 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 at a minimum,
liability shall be assessed at a level that recovers those
economic benefits , 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 and minimum 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 At
a minimum, liability shall be assessed at a level that
recovers those economic benefits , 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.