BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1098
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          Date of Hearing:   April 17, 2007

           ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
                                Jared Huffman, Chair
                   AB 1098 (Saldana) - As Amended:  April 16, 2007
           
          SUBJECT  :   Hazardous materials: administrative penalties:  
          liability.

           SUMMARY  :   Provides clarifying language to AB 2481 (Frommer),  
          Chapter 999, Statutes of 2002, regarding the imposition of  
          administrative and criminal penalties relating to the handling  
          and release of hazardous materials.  Specifically,  this bill  :  

          1)Deletes reference to "governing body" in the Business Plan  
            Administrative Enforcement Order (AEO) for setting  
            administrative penalties.

          2)Clarifies enforcement options by separating existing  
            enforcement options for administrative and criminal processes  
            into individual subsections.

           EXISTING LAW  :

          1)Requires the Secretary for Environmental Protection (CalEPA)  
            to adopt regulations and implement the Unified Hazardous Waste  
            and Hazardous Materials Management Regulatory Program.  A city  
            or local agency that meets specified requirements can be  
            authorized to assume enforcement duties of the program as a  
            Certified Unified Program Agency (CUPA).

          2)Under the CUPA program, authorizes local city and county  
            agencies to unify the administration and enforcement of six  
            environmental programs - the hazardous waste, aboveground and  
            underground storage tank, hazardous materials inventory,  
            extremely hazardous materials accidental release, and  
            hazardous materials/fire code programs.  

          3)Provides an administrative order/administrative penalty  
            program to enforce the corrective action order provisions of  
            the hazardous materials/waste laws. 

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :   








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           Clean-Up Language to AB 2481 (Frommer)  :  According to the  
          sponsor, County of San Diego, prior to AB 2481 (Frommer),  
          Chapter 999, Statutes of 2002, of the six programs overseen by  
          CUPA, four had different administrative order procedures and two  
          had none at all.  AB 2481 created a single, uniform system of  
          administrative actions (AEOs) for all six CUPA programs.   
          However, AB 2481 failed to include a revision needed to a  
          previously existing provision for imposition of penalties by a  
          governing board in the hazardous materials business plan  
          program.  Because this resulted in conflicting statutory  
          provisions, this has been an obstacle in implementing the AEO  
          program for Business Plans.  This has created inconsistency and  
          confusion in the program for regulators and the regulated.  The  
          hearing process created by AB 2481 uses the Administrative  
          Procedures Act in which the hearing officer issues a decision,  
          including the amount of the fine.

          The new AEO procedure requires the CUPA to follow the state  
          Administrative Procedures Act for issuing an enforcement order  
          or assessing an administrative penalty.  In creating the new  
          system, AB 2481 (Frommer) did not remove the clause that  
          mandates the governing board of the administrative agency to set  
          the administrative penalty.  This bill, AB 1098, clarifies that  
          it is not the local governing body but rather the CUPA or  
          participating agency that would set the penalty as it does for  
          other CUPA programs.  

          The sponsor, the County of San Diego, states that this bill will  
          provide greater clarity for both regulators and the regulated  
          community in the enforcement of the State's CUPA program.

           Dual Referral  :  This bill is double-referred.  Should this bill  
          pass out of this committee, it will be referred to Judiciary  
          Committee.


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          County of San Diego (Sponsor)

           Opposition 
           








                                                                  AB 1098
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          California Chamber of Commerce
           
          Analysis Prepared by  :    Caroll Mortensen / E.S. & T.M. / (916)  
          319-3965