BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Kevin Murray, Chairman
1205 (Escutia)
Hearing Date: 5/25/06 Amended: 4/18/06
Consultant: John Decker Policy Vote: EQ 5-1
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BILL SUMMARY: SB 1205 would increase the cap on civil and
criminal penalties for violations of air pollution laws, require
the California Air Resources Board (CARB) to maintain a website
on air quality violations, and earmark ten percent of all
penalty revenue for increased enforcement.
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Fiscal Impact (in thousands)
Major Provisions 2006-07 2007-08 2008-09 Fund
Penalty revenue shift $350 $700 $700
Special*
Administrative costs $150 $400 Special
* Children's Breathing Rights Fund
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STAFF COMMENTS: Suspense File. AS PROPOSED TO BE AMENDED.
Current law authorizes the CARB and local air districts to
monitor and enforce air quality standards. The law establishes
maximum penalties for violations of state or local rules,
regulations or permits. The maximum penalty may increase,
depending on whether the violation causes an injury or is caused
by negligence (See Table 1, below). It sets no minimum penalty.
Table 1
Comparison of Maximum Penalty for Violations
Current Law and SB 1205
Criminal and Civil Penalties
------------------------------------------------------------------
|Type | Violation |Current |Proposed |
| | |Law |Law |
|------+--------------------------------------+---------+----------|
|Crimin|Violation of CARB or air district | $ | $ |
|al |rules, regulations or permits |1,000 |10,000 |
|------+--------------------------------------+---------+----------|
| | | | |
| |--Violations causing injury |15,000 |50,000 |
|------+--------------------------------------+---------+----------|
| | -- Negligent | | |
| |emission of air contaminant |25,000 |50,000 |
|------+--------------------------------------+---------+----------|
| | | | |
|------+--------------------------------------+---------+----------|
|Civil |Violation of CARB or air district | | |
| |rules, regulations or permit |10,000 |25,000 |
|------+--------------------------------------+---------+----------|
| | --Knowing | | |
| |violations |10,000 |40,000 |
|------+--------------------------------------+---------+----------|
| | | | |
| |--Falsification of documents |35,000 |50,000 |
|------+--------------------------------------+---------+----------|
| | --Emitting | | |
| |contaminants, causing injury |15,000 |50,000 |
|------+--------------------------------------+---------+----------|
| |Serious violations | | |
| | | |100,000 |
| | | | |
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Under current law according to the State Controller's
transactions report, air districts received about $14.6 million
in fines, forfeits and penalties in 2002-03 (the latest year for
which data are available). It is not clear how much of this
revenue is attributable to the penalties covered by this bill.
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Page 2
SB 1205 (Escutia)
This bill increases the maximum penalty, by type of violation,
and adds a new penalty. On or after June 1, 2007, a "serious"
violator can incur a maximum daily civil penalty of $100,000. A
"serious" violator may include (but is not limited to) any
person who knowingly disables a monitoring device, or makes
false statements. (See Table 1 for a comparison of current and
proposed law.)
Current law deposits the proceeds of these penalties and
settlements in each air district's General Fund. This bill
shifts at least ten percent of penalty and settlement funds from
the districts to the state, and deposits the revenue in a new
state fund, the Children's Breathing Rights Fund. Subject to
appropriation by the Legislature, these funds are to be
allocated on the following basis:
- 50% to local children's health initiatives in the district
where the funds were assessed.
- 25% for enhanced enforcement and assistance to polluters.
- 25% to prosecute the most egregious violators.
The bill also requires the state air board to create and
maintain a website detailing the air quality violations, by air
district.
Fiscal.
The requirement to shift ten percent of local revenues to the
state could shift $700,000 to the state. (This assumes that
half the revenue reported by the Controller in 2002-03 is
attributable to the penalties covered by this bill, about $7
million.)
The bill authorizes, but does not require, higher penalty
assessments. Districts could receive additional revenue if they
increase their assessments. The amount of this increase cannot
be determined without anticipating changes in enforcement
behavior. However, using the same assumption about the
Controller's data, staff note that for every 1 percent increase
in penalties assessed and collected, the districts will receive
$70,000.
The air board estimates that it will incur costs of $150,000 in
2007-08, $400,000 in 2008-09 and about $300,000 each year
thereafter to establish and maintain the required database.
As proposed to be amended, the bill would be limited to ensure
that (1) the information requested is no greater than that
currently provided to the federal EPA, (2) confidential
information is protected, and (3) local prosecution costs are
covered by the penalty assessments.