Amended in Senate August 18, 2016

Amended in Senate August 2, 2016

Amended in Senate June 14, 2016

Amended in Assembly April 11, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1685


Introduced by Assembly Member Gomez

January 20, 2016


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

LEGISLATIVE COUNSEL’S DIGEST

AB 1685, as amended, Gomez. Vehicular air pollution:begin insert zero-emission vehicles:end insert civil penalties.

(1) Existing 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. 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 of up to $500 per vehicle. 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 is subject to a civil penalty of $5,000 per violation. 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.

This bill would increase those penalties to up to $37,500 perbegin delete violation or vehicle.end deletebegin insert violation.end insert The bill would require the state board to adjust those maximum penalties for inflation, as specified, and would exempt those adjustments from the Administrative Procedure Act. The bill would authorizebegin insert the state board to requireend insert the payment of a penalty for the violation of specified vehicular air pollution statutes or specified orders, rules, or regulations of the statebegin delete board be a conditionend deletebegin insert board, and making the products compliant with specified laws, as conditionsend insert for the continued salebegin delete by a manufacturer or distributor of products that are alleged or found to be in violation by the state board.end deletebegin insert of those products.end insert

This bill would authorize the state board to order a manufacturer of motor vehicles to bring the vehicles into compliance with the emissions configuration to which they were certified. The bill would authorizebegin insert the state board to requireend insert 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.

(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.

This bill instead would prohibit any person from offering for sale, 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.

This bill would increase the civil penalty to up to $37,500 per violation and up to $10,000 for a dealer, as defined, 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 those maximum penalties for inflation, as specified, and would exempt those adjustments from the Administrative Procedure Act. The bill would authorizebegin insert the state board to requireend insert the payment of thebegin delete penalty be a conditionend deletebegin insert penalty, and making the motor vehicles compliant with specified laws, as conditionsend insert for the continuedbegin insert or furtherend insert sale in the statebegin delete by that manufacturer or distributor of motor vehicles that are alleged or found to be in violation by the state board.end deletebegin insert of those motor vehicles.end insert

begin insert

This bill would require the state board to limit to $5,000 a specified civil penalty imposed on a manufacturer who does not meet the requirements of specified regulations that require manufacturers to have a specified percentage of their new motor vehicle sales be zero-emission vehicles.

end insert

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

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

P3    1

SECTION 1.  

Section 43016 of the Health and Safety Code is
2amended to read:

3

43016.  

(a) (1) A person who violates any provision of this
4part, or any order, rule, or regulation of the state board adopted
5pursuant to this part, and for which violation there is not provided
6in this part any other specific civil penalty or fine, shall be subject
7to a civil penalty not to exceed thirty-seven thousand five hundred
8dollars ($37,500) for eachbegin delete violation subject to regulationend deletebegin insert such
9actionend insert
pursuant to this part. Violations involving portable fuel
10containers or small off-road engines shall be subject to a civil
11penalty not to exceed five hundred dollars ($500) per unit. For a
12manufacturer or distributor who violates any provision of this part,
13or any order, rule, or regulation of the state board adopted pursuant
14to this part, the payment of the penaltybegin insert and making the product
15compliant with applicable emission control lawsend insert
may bebegin delete a
16conditionend delete
begin insert required by the executive officer of the state board as
17conditionsend insert
for the continued sale in this statebegin delete by the manufacturer
18or distributorend delete
ofbegin insert thoseend insert products begin delete that are alleged or found to be in
19violation by the state board.end delete
begin insert regulated by the state board pursuant
20to this division.end insert

P4    1(2) The state board shall adjust the maximum penalties specified
2in paragraph (1) for inflation based on the California Consumer
3Price Index. The adjustment shall be exempt from the
4Administrative Procedure Act (Chapter 3.5 (commencing with
5Section 11340) of Part 1 of Division 3 of Title 2 of the Government
6Code).

7(b) Any penalty collected pursuant to this section shall be
8deposited in the Air Pollution Control Fund.

9

SEC. 2.  

Section 43151 of the Health and Safety Code is
10amended to read:

11

43151.  

(a) A person shall not offer for sale, introduce into
12commerce, import, deliver, purchase, rent, lease, acquire, or receive
13a new motor vehicle, new motor vehicle engine, or motor vehicle
14with a new motor vehicle engine for use, registration, or resale in
15this state unless the motor vehicle engine or motor vehicle has
16been certified pursuant to this chapter. A person shall not attempt
17or assist inbegin delete thatend deletebegin insert any suchend insert action.

18(b) This article shall not apply to a vehicle acquired by a resident
19of this state for the purpose of replacing a vehicle registered to
20that resident that was damaged or became inoperative beyond
21reasonable repair or was stolen while out of this state provided
22that the replacement vehicle is acquired out of state at the time the
23previously owned vehicle was either damaged or became
24inoperative or was stolen. This article shall not apply to a vehicle
25transferred by inheritance or by a decree of divorce, dissolution,
26or legal separation entered by a court of competent jurisdiction,
27or to any vehicle sold after the effective date of the amendments
28to this subdivision at the 1979-80 Regular Session of the
29Legislature if the vehicle was registered in this state before that
30 effective date.

31(c) This chapter shall not apply to any motor vehicle having a
32certificate of conformity issued pursuant to the federal Clean Air
33Act (42 U.S.C. Sec. 7401 et seq.) and originally registered in
34another state by a resident of that state who subsequently
35establishes residence in this state and who, upon registration of
36the vehicle in this state, provides satisfactory evidence to the
37Department of Motor Vehicles of the previous residence and
38registration. This subdivision shall become operative 180 calendar
39days after the state board adopts regulations for the certification
40of new direct import vehicles pursuant to Section 43203.5.

P5    1

SEC. 3.  

Section 43154 of the Health and Safety Code is
2amended to read:

3

43154.  

(a) (1) A person who violates any provision of this
4article shall be subject to a civil penalty not to exceed thirty-seven
5thousand five hundred dollars ($37,500) for eachbegin delete violation.end deletebegin insert such
6action.end insert
For a manufacturer or distributor who violates any provision
7of this article, the payment of the penaltybegin insert and making the vehicles
8compliant with applicable emission control lawsend insert
may bebegin delete a
9conditionend delete
begin insert required by the executive officer of the state board as
10conditionsend insert
for the continued sale in this statebegin delete by that manufacturer
11or distributor of motor vehicles that are alleged or found to be in
12violation by the state board.end delete
begin insert of those motor vehicles.end insert

13(2) Notwithstanding paragraph (1), a dealer, as defined in
14Section 285 of the Vehicle Code, who violates any provision of
15this article shall be subject to a civil penalty not to exceed ten
16thousand dollars ($10,000) for eachbegin delete violation.end deletebegin insert such action.end insert

17(3) The state board shall adjust the maximum penalty specified
18in paragraphs (1) and (2) for inflation based on the California
19Consumer Price Index. The adjustment shall be exempt from the
20Administrative Procedure Act (Chapter 3.5 (commencing with
21Section 11340) of Part 1 of Division 3 of Title 2 of the Government
22Code).

23(b) Any action to recover a penalty under this section shall be
24brought in the name of the people of the State of California in the
25 superior court of the county where the violation occurred, or in
26the county where the defendant’s residence or principal place of
27business is located, by the Attorney General on behalf of the state
28board, in which event all penalties adjudged by the court shall be
29deposited in the Air Pollution Control Fund, or by the district
30attorney or county attorney of that county, or by the city attorney
31of a city in that county, in which event all penalties adjudged by
32the court shall be deposited with the treasurer of the county or city,
33as the case may be.

34

SEC. 4.  

Section 43211 of the Health and Safety Code is
35amended to read:

36

43211.  

(a) begin delete(1)end deletebegin deleteend deleteA new motor vehicle sold in California shall
37meet the emission standards adopted by the state board, and a
38manufacturer who sells, attempts to sell, or causes to be offered
39for sale a new motor vehicle that fails to meet the applicable
40emission standards shall be subject to a civil penalty not to exceed
P6    1thirty-seven thousand five hundred dollars ($37,500) for each
2
begin delete violation.end deletebegin insert such action.end insert

begin insert

3
(b) For purposes of calculating the penalty for failure to meet
4zero-emission vehicle credit requirements pursuant to Sections
51962, 1962.1, and 1962.2 of Title 13 of the California Code of
6Regulations or any subsequent or related regulation, the civil
7penalty shall not exceed five thousand dollars ($5,000) per
8zero-emission vehicle credit.

end insert
begin delete

9(2)

end delete

10begin insert(c)end insert The state board shall adjust the maximum penalty specified
11inbegin delete paragraph (1)end deletebegin insert subdivisions (a) and (b)end insert for inflation based on the
12California Consumer Price Index. The adjustment shall be exempt
13from the Administrative Procedure Act (Chapter 3.5 (commencing
14with Section 11340) of Part 1 of Division 3 of Title 2 of the
15Government Code).

begin delete

16(b)

end delete

17begin insert(d)end insert Any penalty recovered pursuant to this section shall be
18deposited into the General Fund.

19

SEC. 5.  

Section 43212 of the Health and Safety Code is
20amended to read:

21

43212.  

(a) (1) A manufacturer or distributor who does not
22comply with the emission standards or the test procedures adopted
23by the state board shall be subject to a civil penalty not to exceed
24thirty-seven thousand five hundred dollars ($37,500) for each
25vehicle that does not comply with the standards or procedures and
26that is first sold in this state. The payment ofbegin delete thoseend deletebegin insert suchend insert penalties
27to the state boardbegin insert and making the vehicles compliant with
28applicable emission control laws and test proceduresend insert
may bebegin delete a
29condition toend delete
begin insert required by the executive officer of the state board as
30conditions forend insert
the further sale in this statebegin delete by the manufacturer or
31distributor of motor vehicles that are alleged or found to be in
32violation by the state board.end delete
begin insert of those motor vehicles.end insert

33(2) The state board shall adjust the maximum penalty specified
34in paragraph (1) for inflation based on the California Consumer
35Price Index. The adjustment shall be exempt from the
36Administrative Procedure Act (Chapter 3.5 (commencing with
37Section 11340) of Part 1 of Division 3 of Title 2 of the Government
38Code).

39(b) Any penalty recovered pursuant to this section shall be
40deposited into the Air Pollution Control Fund.

P7    1

SEC. 6.  

Section 43214 is added to the Health and Safety Code,
2to read:

3

43214.  

The state board may order a manufacturer of motor
4vehicles to bring its vehicles into compliance with the emissions
5configuration to which they were certified. Compliance with the
6order may bebegin insert required by the executive officer of the state board
7asend insert
a condition for the continued sale begin delete in this state by that
8manufacturer of motor vehicles that are alleged or found to be in
9violation by the state board.end delete
begin insert of those motor vehicles by that
10manufacturer in this state.end insert



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