California Assembly Bill AB1685 Amended / Bill

 BILL NUMBER: AB 1685AMENDED BILL TEXT AMENDED IN SENATE AUGUST 2, 2016 AMENDED IN SENATE JUNE 14, 2016 AMENDED IN ASSEMBLY APRIL 11, 2016 AMENDED IN ASSEMBLY MARCH 18, 2016 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: 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  action.  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 per  action   violation  or vehicle. 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  require that   authorize  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 by a manufacturer or distributor of products that are  subject to regulation   alleged or found to be in violation  by the state board. 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  require   authorize  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  action   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  require that   authorize  the payment of the penalty be a condition for the continued sale  in the state by that manufacturer or distribut   or  of motor vehicles  by the manufacturer or distributer in the state.   that are alleged or found to be in violation by the state board.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 43016 of the Health and Safety Code is amended to read: 43016. (a) (1) A 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 thirty-seven thousand five hundred dollars ($37,500) for each  such action   violation  subject to regulation pursuant to this part. Violations involving portable fuel containers or small off-road engines shall be subject to a civil penalty not to exceed five hundred dollars ($500) per unit. For a manufacturer or distributor who violates any provision of this part, or any order, rule, or regulation of the state board adopted pursuant to this part, the payment of the penalty  shall   may  be a condition for the continued sale  in this state  by the manufacturer or distributor  in this state  of products  regulated   that are alleged or found to be in violation  by the state  board pursuant to this division.   board.  (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). (b) Any penalty collected pursuant to this section shall be deposited in the Air Pollution Control Fund. SEC. 2. Section 43151 of the Health and Safety Code is amended to read: 43151. (a) A person shall not offer for sale, introduce into commerce, 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 the motor vehicle engine or motor vehicle has been certified pursuant to this chapter. A person shall not attempt or assist in  any such   that  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 that resident that was damaged or became inoperative beyond reasonable repair or was stolen while out of this state provided that the 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 inheritance 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 that effective date. (c) This chapter shall not apply to any motor vehicle having a certificate of conformity issued pursuant to the federal 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. SEC. 3. Section 43154 of the Health and Safety Code is amended to read: 43154. (a) (1) A person who violates any provision of this article shall be subject to a civil penalty not to exceed thirty-seven thousand five hundred dollars ($37,500) for each  such action.   violation.  For a manufacturer or distributor who violates any provision of this article, the payment of the penalty  shall   may  be a condition for the continued sale  in this state by that manufacturer or distributor  of motor vehicles  by that manufacturer or distributor in this state.   that are alleged or found to be in violation by the state board.  (2) Notwithstanding paragraph (1), a dealer, as defined in Section 285 of the Vehicle Code, who violates any provision of this article shall be subject to a civil penalty not to exceed ten thousand dollars ($10,000) for each  such action.   violation.  (3) The state board shall adjust the maximum penalty specified in paragraphs (1) and (2) 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). (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   that  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. SEC. 4. Section 43211 of the Health and Safety Code is amended to read: 43211. (a) (1) A new motor vehicle sold in California shall meet the emission standards adopted by the state board, and a 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 not to exceed thirty-seven thousand five hundred dollars ($37,500) for each  such action.   violation.  (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). (b) Any penalty recovered pursuant to this section shall be deposited into the General Fund. SEC. 5. Section 43212 of the Health and Safety Code is amended to read: 43212. (a) (1) A 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 not to exceed thirty-seven thousand five hundred dollars ($37,500) for each vehicle that does not comply with the standards or procedures and that is first sold in this state. The payment of  such   those  penalties to the state board  shall   may  be a condition to the further sale  in this state  by the manufacturer or distributor of motor vehicles  in this state.   that are alleged or found to be in violation by the state board.  (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). (b) Any penalty recovered pursuant to this section shall be deposited into the Air Pollution Control Fund. SEC. 6. Section 43214 is added to the Health and Safety Code, to read: 43214. The state board may order a manufacturer of motor vehicles to bring its vehicles into compliance with the emissions configuration to which they were certified. Compliance with the order  shall   may  be a condition for the continued sale  in this state by that manufacturer  of motor vehicles  by that manufacturer in this state.   that are alleged or   found to be in violation by the state board.