Amended in Assembly April 11, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1685

Introduced by Assembly Member Gomez

January 20, 2016

An act to begin insert amend Sections 43016, 43151, 43154, 43211, and 43212 of, and add Section 43214 to, the Health and Safety Code, end insert relating to vehicular air pollution.

LEGISLATIVE COUNSEL’S DIGEST

AB 1685, as amended, Gomez. begin delete New motor vehicles: emission standards: end delete begin insert Vehicular air pollution: end insert civil penalties.

begin delete

Existing

end delete

begin insert (1 end insert begin insert ) end insert begin insert   end insert begin insert Existing end insert law requires the State Air Resources Board to adopt and implement standards for the control of emissions from new motor vehicles that the state board finds to be necessary and technologically feasible. Existing law prohibits a new motor vehicle from being sold in the state that does not meet the emissions standards adopted by the state board. begin insert Existing law provides that a person who violates specified vehicular air pollution statutes or specified orders, rules, or regulations of the state board is subject to a civil penalty up to $500 per vehicle. end insert Existing law provides that any manufacturer who sells, attempts to sell, or causes to be offered for sale a new motor vehicle that fails to meet the applicable emission standards shall be subject to a civil penalty of $5,000 begin delete for each such end delete begin insert per end insert action. begin insert Existing law provides that a manufacturer or distributor who does not comply with the emission standards or the test procedures adopted by the state board is subject to a civil penalty of $50 per vehicle. end insert

begin insert

This bill would increase those penalties to $37,500 per action or vehicle. The bill would require the state board to adjust those penalties for inflation, as specified. The bill would require that the payment of a penalty for the violation of specified vehicular air pollution statutes or specified orders, rules, or regulations of the state board be a condition for the continued sale of products that are subject to regulation by the state board. The bill would exempt these provisions from the Administrative Procedure Act.

end insert begin insert

This bill would authorize the state board to order a manufacturer of new motor vehicles to bring the vehicles into compliance with the emissions configuration they were certified to meet. The bill would require the manufacturer to be in compliance with the state board’s order as a condition for the continued sale of motor vehicles in the state.

end insert begin insert

(2) Existing law prohibits a person who is a state resident or who operates an established place of business within the state from importing, delivering, purchasing, renting, leasing, acquiring, or receiving a new motor vehicle, new motor vehicle engine, or motor vehicle with a new motor vehicle engine for use, registration, or resale in the state unless the motor vehicle engine or new motor vehicle has been certified to meet specified emissions standards. Existing law provides that a person who violates specified provisions relating to transactions of new motor vehicles or new motor vehicle engines is subject to a civil penalty of up to $5,000 per vehicle.

end insert begin insert

This bill instead would prohibit any person from advertising, introducing into commerce, importing, delivering, purchasing, renting, leasing, acquiring, or receiving a new motor vehicle, new motor vehicle engine, or motor vehicle with a new motor vehicle engine for use, registration, or resale in the state unless the motor vehicle engine or new motor vehicle has been certified to meet those specified emissions standards.

end insert begin insert

This bill would increase the civil penalty to $37,500 per action for violating those specified provisions relating to transactions of new motor vehicles or new motor vehicle engines. The bill would require the state board to adjust that penalty for inflation, as specified. The bill would require that the payment of the penalty be a condition for the continued sale of motor vehicles by the manufacturer or distributer in the state. The bill would exempt these provisions from the Administrative Procedure Act.

end insert begin delete

This bill would require the state board to update civil penalties to ensure state law provides appropriate penalties, accounting for the intent of the violator, for introducing into commerce in California vehicles that do not meet emission standards adopted by the state board.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 43016 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

43016.  

begin delete Any end delete begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert A end insert person who violates any provision of
this part, or any order, rule, or regulation of the state board adopted
pursuant to this part, and for which violation there is not provided
in this part any other specific civil penalty or fine, shall be subject
to a civil penalty not to exceed begin delete five hundred dollars ($500) per
vehicle, portable fuel container, spout, engine, or other unit end delete
begin insert thirty-seven thousand five hundred dollars ($37,500) for each
action end insert subject to regulation begin delete under end delete begin insert pursuant to end insert this begin delete part, as these
terms are defined in this division or state board regulations. Any end delete

begin insert part. Violations involving portable fuel containers or small off-road
engines shall be subject to a civil penalty of five hundred dollars
($500) per unit. For a manufacturer or distributor who violates
any provision of this article, the payment of the penalty shall be a
condition for the continued sale by the manufacturer or distributor
in this state of products regulated by the state board pursuant to
this division. end insert

begin insert

(2) The state board shall adjust the maximum penalties specified
in paragraph (1) for inflation based on the California Consumer
Price Index. The adjustment shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

end insert

begin insert (b) end insert begin insert   end insert begin insert Any end insert penalty collected pursuant to this section shall be
begin delete payable to the State Treasurer for deposit end delete begin insert deposited end insert in the Air
Pollution Control Fund.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 43151 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

43151.  

(a)   begin delete No end delete begin insert A end insert person begin delete who is a resident of, or who operates
an established place of business within, this state end delete shall begin insert not
advertise, introduce into commerce, end insert import, deliver, purchase,
rent, lease, acquire, or receive a new motor vehicle, new motor
vehicle engine, or motor vehicle with a new motor vehicle engine
for use, registration, or resale in this state unless begin delete such end delete begin insert the end insert motor
vehicle engine or motor vehicle has been certified pursuant to this
chapter. begin delete No end delete begin insert A end insert person shall begin insert not end insert attempt or assist in begin delete any such end delete begin insert that end insert
action.

(b)  This article shall not apply to a vehicle acquired by a
resident of this state for the purpose of replacing a vehicle
registered to begin delete such end delete begin insert that end insert resident begin delete which end delete begin insert that end insert was damaged or became
inoperative beyond reasonable repair or was stolen while out of
this begin delete state; end delete begin insert state end insert provided that begin delete such end delete begin insert the end insert replacement vehicle is
acquired out of state at the time the previously owned vehicle was
either damaged or became inoperative or was stolen. This article
shall not apply to a vehicle transferred by begin delete inheritance, end delete begin insert inheritance end insert
or by a decree of divorce, dissolution, or legal separation entered
by a court of competent jurisdiction, or to any vehicle sold after
the effective date of the amendments to this subdivision at the
1979-80 Regular Session of the Legislature if the vehicle was
registered in this state before begin delete such end delete begin insert that end insert effective date.

(c)  This chapter shall not apply to any motor vehicle having a
certificate of conformity issued pursuant to the begin insert federal end insert Clean Air
Act (42 U.S.C. Sec. 7401 et seq.) and originally registered in
another state by a resident of that state who subsequently
establishes residence in this state and who, upon registration of
the vehicle in this state, provides satisfactory evidence to the
Department of Motor Vehicles of the previous residence and
registration. This subdivision shall become operative 180 calendar
days after the state board adopts regulations for the certification
of new direct import vehicles pursuant to Section 43203.5.

begin delete

(d)  “Established place of business,” as used in this section,
means a place actually occupied either continuously or at regular
periods.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 43154 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

43154.  

(a)   begin delete Any end delete begin insert (1) end insert begin insert   end insert begin insert A end insert person who violates any provision of
this article shall be begin delete liable for end delete begin insert subject to end insert a civil penalty not to exceed

begin delete five thousand dollars ($5,000) per vehicle. end delete begin insert thirty-seven thousand
five hundred dollars ($37,500) for each action. For a manufacturer
or distributor who violates any provision of this article, the
payment of the penalty shall be a condition for the continued sale
of motor vehicles by that manufacturer or distributer in this state. end insert

begin insert

(2) The state board shall adjust the maximum penalty specified
in paragraph (1) for inflation based on the California Consumer
Price Index. The adjustment shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

end insert

(b)  Any action to recover a penalty under this section shall be
brought in the name of the people of the State of California in the
superior court of the county where the violation occurred, or in
the county where the defendant’s residence or principal place of
business is located, by the Attorney General on behalf of the state
board, in which event all penalties adjudged by the court shall be
deposited in the Air Pollution Control Fund, or by the district
attorney or county attorney of such county, or by the city attorney
of a city in that county, in which event all penalties adjudged by
the court shall be deposited with the treasurer of the county or city,
as the case may be.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 43211 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

43211.  

begin delete No end delete begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert A end insert new motor vehicle sold in California begin delete that
does not end delete begin insert shall end insert meet the emission standards adopted by the state
board, and begin delete any end delete begin insert a end insert manufacturer who sells, attempts to sell, or causes
to be offered for sale a new motor vehicle that fails to meet the
applicable emission standards shall be subject to a civil penalty of
begin delete five thousand dollars ($5,000) end delete begin insert thirty-seven thousand five hundred
dollars ($37,500) end insert for each begin delete such end delete action.

begin insert

(2) The state board shall adjust the maximum penalty specified
in paragraph (1) for inflation based on the California Consumer
Price Index. The adjustment shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

end insert begin delete

Any

end delete

begin insert (b end insert begin insert ) end insert begin insert   end insert begin insert Any end insert penalty recovered pursuant to this section shall be
deposited into the General Fund.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 43212 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

43212.  

begin delete Any end delete begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert A end insert manufacturer or distributor who does
not comply with the emission standards or the test procedures
adopted by the state board shall be subject to a civil penalty of
begin delete fifty dollars ($50) end delete begin insert thirty-seven thousand five hundred dollars
($37,500) end insert for each vehicle begin delete which end delete begin insert that end insert does not comply with the
standards or procedures and begin delete which end delete begin insert that end insert is first sold in this state.
The payment of begin delete such end delete begin insert the end insert penalties to the state board shall be a
condition to the further sale by begin delete such end delete begin insert the end insert manufacturer or distributor
of begin insert new end insert motor vehicles in this state.

begin insert

(2) The state board shall adjust the maximum penalty specified
in paragraph (1) for inflation based on the California Consumer
Price Index. The adjustment shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

end insert begin delete

Any

end delete

begin insert (b) end insert begin insert   end insert begin insert Any end insert penalty recovered pursuant to this section shall be
deposited into the Air Pollution Control Fund.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 43214 is added to the end insert begin insert Health and Safety Code end insert begin insert ,
to read: end insert

begin insert

begin insert 43214. end insert   

The state board may order a manufacturer of new motor
vehicles to bring its vehicles into compliance with the emissions
configuration they were certified to meet. Compliance with the
order shall be a condition for the continued sale of motor vehicles
by that manufacturer in this state.

end insert

begin delete

SECTION 1.  

The State Air Resources Board shall update civil
penalties to ensure state law provides appropriate penalties,
accounting for the intent of the violator, for introducing into
commerce in California vehicles that do not meet emission
standards adopted by the state board.

end delete