BILL ANALYSIS
SB 1433
Page 1
SENATE THIRD READING
SB 1433 (Leno)
As Amended May 5, 2010
Majority vote
SENATE VOTE :21-7
NATURAL RESOURCES 5-3 APPROPRIATIONS 12-5
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|Ayes:|Chesbro, Brownley, De |Ayes:|Fuentes, Bradford, |
| |Leon, Hill, Skinner, | |Charles Calderon, Coto, |
| | | |Davis, De Leon, Gatto, |
| | | |Hall, Skinner, Solorio, |
| | | |Torlakson, Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gilmore, Knight, Logue |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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SUMMARY : Requires the Air Resources Board (ARB) to adjust for
inflation the maximum values for specific stationary source
fines and that are enforced by ARB and by local air districts
beginning March 1, 2011. Specifically, this bill:
1)Requires ARB, beginning March 1, 2011, to annually adjust the
maximum penalties for violations of air pollution standards
enforced by ARB, a local air pollution control district, or a
local air quality management district.
2)Requires that the inflation adjustment calculation be
prospective only and be based on the California Consumer Price
Index that is released during the January of that year by the
Department of Industrial Relations.
3)Requires ARB to publish the annually adjusted maximum penalty
values on their Internet Web site.
EXISTING LAW :
4)Establishes that ARB is the state agency responsible for the
enforcement of all vehicular and federal air pollution
regulations.
SB 1433
Page 2
5)Establishes that local air districts have the primary
responsibility of enforcement of stationary source air
pollution laws.
6)Establishes fines and criminal penalties for specific
violations of stationary source air pollution laws.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : Fines and penalties are generally established in
order to accomplish several basic objectives: 1) encourage
timely compliance with the law in order to eliminate negative
ongoing impacts of violation of the law; 2) create a level
playing field economically and competitively so that violators
do not reap competitive advantages; and, 3) discourage further
violations with the law. These principles, in general, apply
universally to most violations. Many of these penalties are
established by legislation and, in some cases, have not kept up
with inflation.
Stationary sources of air pollution in California are typically
overseen by local air pollution control districts. The fines
associated with these specific air pollution violations were
last established in 1982 at a maximum level of $1,000 for a case
of strict liability and have not been adjusted for inflation
since then. This bill adjusts maximum penalties for stationary
source violations. However, this adjustment will not be
retroactive. For example, if this specific air pollution
maximum fine had been annually adjusted for inflation since the
time of its establishment in 1982, the current $1,000 ceiling
would now be approximately twice that value (~$2,000). If the
provisions of this bill take effect in 2011, the new maximum
fine value will rather be calculated prospectively. For
example, if the provisions of this bill were to have taken
effect in 2009, the 2010 maximum penalty value allowable for
stationary air pollution violators would have been approximately
$1010. In addition, the penalty adjustments are for maximum
values, and no minimum values are established, and courts and
local air pollution control districts take into account
additional information including mitigating factors when
establishing the appropriate penalty when a violation is
identified.
SB 1433
Page 3
At the federal level, the existing policy of the U.S.
Environmental Protection Agency (EPA) is to annually adjust
penalties for inflation for both statutory and regulatory
violations. The EPA is required to adjust their penalties for
inflation at least every four years.
SB 1865 (Perata), Chapter 805, Statutes of 2000, raised the
civil penalties for some non-strict liability violations of air
pollution limits.
AB 846 (Torrico) is currently in the Assembly Governmental
Organization Committee and pertains to inflation adjustments to
a wide range of non-air pollution associated penalties.
Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916)
319-2092
FN: 0005627