BILL ANALYSIS                                                                                                                                                                                                    






                       SENATE JUDICIARY COMMITTEE              A   
                      Charles M. Calderon, Chairman            B
                         1995-96 Regular Session
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AB 1174 (Cunneen)
As introduced 
Hearing date:  June 20, 1995
Code of Civil Procedure
GEH:cb



                       STATUTES OF LIMITATIONS 
   CIVIL PENALTIES FOR OBSTRUCTION, DIVERSION OR POLLUTION OF WATERS
                                 


                               HISTORY


Source:  California District Attorneys Association

Related Pending Legislation:  SB 649 (Costa)


                              KEY ISSUES

1.   SHOULD THE STATUTE OF LIMITATIONS FOR BRINGING AN ACTION FOR  
     CIVIL PENALTIES FOR DIVERTING, OBSTRUCTING, OR POLLUTING WATERS  
     OF THE STATE BE EXTENDED FROM ONE YEAR TO FIVE YEARS?

    A.       IS THE PRESENT ONE-YEAR STATUTE OF LIMITATIONS  
         INSUFFICIENT?

    B.       IF THE ONE YEAR PERIOD IS TO BE EXTENDED, SHOULD IT BE  
         THREE YEARS OR FIVE YEARS? 




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                               PURPOSE

The purpose of this bill is to extend the statute of limitations for  
bringing an action for civil penalties against a person accused of  
obstructing, diverting, or polluting waters of the state from one  
year to five years.







































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AB 1174 (Cunneen)
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Under  existing law, Section 1603 of the Fish and Game Code, it is  
unlawful for any person to substantially divert or obstruct the  
natural flow or substantially change the bed, channel, or bank of  
any river, stream or lake designated by the Department of Fish and  
Game, or use any material from the streambeds, without first  
notifying the department of such activity.

Under Section 5650 of the Fish and Game Code, it is unlawful to  
deposit in, permit to pass into, or place where it can pass into the  
waters of the state a list of harmful materials.  These items  
include petroleum, acid, coal, asphalt, or similar material, and any  
liquid or solid refuse from any refinery, gashouse, tannery,  
distillery, chemical works, mill or factory of any kind, and "any  
substance or material deleterious to fish, plant, or bird life." 

In 1991, the legislature passed AB 1386 (Cortese, c. 844), which  
enacted special civil enforcement statutes for violations of these  
two sections (Sections 1603.1 and 5650.1 of the Fish and Game Code,  
respectively).  These statutes provide for actions by the Attorney  
General, district attorneys and city attorneys for civil penalties   
of not more than $25,000 for each violation.  They also authorize  
these officers to seek an injunction in such an action.  Under  
Section 12000 of the Fish and Game Code, violations of these  
sections can also be prosecuted as a misdemeanor.

AB 1386 did not specify what the statute of limitations should be  
for bringing actions for civil penalties pursuant to Sections 1603.1  
and 5650.1.  As a result, the applicable statute is Section 340 of  
the Code of Civil Procedure, which requires an action seeking a  
penalty or forfeiture for violation of a statute to be brought  
within one year, unless the statute imposing the penalty or  
forfeiture prescribes a different statute of limitations.  Under  
Section 802 of the Penal Code, if these violations are prosecuted as  
misdemeanors, the applicable statute of limitations is one year.   
There are two special statute of limitations section in the Code of  
Civil Procedure which provide for longer statutes of limitations for  
actions seeking civil penalties for certain environmental law.  
Section 338 provides for a three-year statute of limitations for  
violations of the Porter-Cologne Water Quality Control Act (Section  
13000  et.  seq. of the Water Code), and for violations of the state's  
air quality laws (Section 39000  et.  seq. of the Health and Safety  
Code).  


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AB 1174 (Cunneen)
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Section 338.1 provides for a five year statute of limitations for  
violations of the state's hazardous waste management laws (Section  
25100  et.  seq. of the Health and Safety Code), the laws regulating  
underground storage tanks (Section 25280  et.  seq. of the Health and  
Safety Code), and the state Superfund statute (Section 25300 et.  
seq. of the Health and Safety Code).

Both Section 338 and 338.1 provide that the statute of limitations  
does not begin to run until five years after the discovery by the  
agency bringing the action of the facts constituting the grounds for  
commencing the action.  

This bill amends Section 338.1 of the Code of Civil Procedure to  
include in its five-year statute of limitations actions seeking  
civil penalties under Section 1603.1 and 5650.1 of the Fish and Game  
Code.   


                               COMMENT

1.   Extending the statute of limitations

    a)       Is one year insufficient?

        i)            Supporters' arguments

                     The supporters of the bill argue that one year  
             is simply too short a time to do everything which  
             should be done before filing a civil action.  The Santa  
             Clara Valley Water District writes: 

                     "A one year period does not provide sufficient  
             time to perform an adequate follow-up investigation or  
             to work with a property owner who is cooperative, but  
             who may have been unaware of the condition of the  
             property or the prohibition of the law.  This could  
             result in the filing of a lawsuit before the violator  
             has had sufficient opportunity to demonstrate goodwill,  
             misunderstanding, or other factors relevant to the  
             determination of culpability or the severity thereof." 
        ii)           Opponents' arguments


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AB 1174 (Cunneen)
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                     Opponents of the measure argue that one year is  
             sufficient, since prosecutors must decide within that  
             time whether to file the action as a misdemeanor.  The  
             Western States Petroleum Association (WSPA) writes:

                     "The prosecutor must make a threshold decision  
             as to whether a violation merits criminal prosecution.   
             As part of that evaluation, a prosecutor would  
             ordinarily consider whether a civil prosecution is  
             appropriate.  Since the prosecutor must make this  
             decision within a year, there is no need to lengthen  
             the statute of limitations."

                     In response to the argument that more than one  
             year is needed to work cooperatively and meet with the  
             accused violator, WSPA states:

                     "Unfortunately, many prosecutors do not give  
             the accused an opportunity to tell their side of the  
             story until after a filing decision has been made, not  
             because of timing, but because the prosecutor does not  
             want their filing decision influenced by the accused.   
             One year is more than adequate time to meet with the  
             accused."   

                     WSPA also argues that Section 5650.1 of the  
             Fish and Game deserves to have a short statute of  
             limitations like one year because it is an inequitable  
             statute which needs to be reformed.  WSPA is sponsoring  
             such reform in AB 649 (Costa), which was passed by this  
             committee.  That bill would change the standard for an  
             injunction; require a  mens  rea of negligence and a  
             showing of significant harm for criminal prosecution;  
             and modify the criteria for determining the amount of a  
             civil penalty. 

        iii)          Discussion -- consistency with prior enactments  


                     The sponsors of this measure, the California  
             District Attorneys Association, assert that this bill  


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AB 1174 (Cunneen)
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             is a "purely technical cure to clean-up any ambiguity  
             and confusion caused by the absence of an expressly  
             stated limitation provision" in AB 1368.  

                     This argument appears to be disingenuous.   
             There is no ambiguity about the fact that, under  
             Section 340 of the Code of Civil Procedure, the absence  
             of an expressly stated limitation provision in AB 1368  
             makes the applicable statute of limitations one year.    
             This bill makes a substantive, not technical, change in  
             that unambiguous law, by quintupling the length of the  
             statute of limitations from one year to five years.

                     CDAA's better argument is that a one year  
             statute of limitations is inconsistent with the  
             limitation period for violations of other environmental  
             laws.  The only other major pollution statute which has  
             a one year statute because of the application of CCP  
             Section 340 is Proposition 65 (Section 2549.5  et.  seq.  
             of the Health and Safety Code), which, among other  
             things, prohibits the knowing discharge or release of  
             carcinogens or reproductive toxins into water or where  
             they may pass into water.
            
                     Although the prohibition in Proposition 65 is  
             quite similar to the sections affected by this statute,  
             it has a one-year limitation only by the default  
             application of CCP Section 340.  When the Legislature  
             has specifically spoken on the issue of statutes of  
             limitations for pollution statutes, it has enacted  
             either three or five year limitation periods (see  
             comment "b" below).  All of the pollution statutes with  
             3 and 5 years limitation provisions can be  
             alternatively prosecuted as misdemeanors. 

        b)            Three years or five years?

                     CDAA has suggested that these Fish and Game  
             Code provisions be placed in the same statute providing  
             for a five year limitation period for violations of  
             hazardous waste and hazardous substance laws because  
             those are laws under which district attorneys often  


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AB 1174 (Cunneen)
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             bring actions.  District attorneys do not often bring  
             actions under the Porter-Cologne Water Quality Control  
             Act, the Lempert-Keene Oil Spill Prevention and  
             Response Act, or the air quality laws, which have three  
             year limitation periods.  

                     Industry representatives have accused district  
             attorneys of prosecuting under the Fish and Game Code  
             provisions in order to collect their county's statutory  
             one-half share of the resultant civil penalties.  The  
             same accusation has been made about district attorneys  
             being overzealous in prosecuting violations of  
             hazardous waste laws because of their statutory 25  
             percent share of any civil penalties collected.      

                     The Fish and Game Code provisions affected by  
             this bill, which relate to unauthorized placement of  
             obstructions or pollutants into waters, appear to be  
             more similar to the provisions which have three year  
             statutes than to those with five year statutes.  In  
             fact, two of the statutes with three year limitation  
             provisions are virtually identical in purpose to  
             Section 5650 of the Fish and Game Code: Section  
             13350(b) of the Water Code, which prohibits discharging  
             hazardous substances into waters of the state so as to  
             create a condition of pollution or nuisance; and  
             Section 8670.67.5 of the Government Code, which  
             prohibits permitting oil from being discharged into  
             marine waters.  

                     By contrast, the five year statutes do not  
             expressly apply to waters of the state; they relate to  
             the management and release of hazardous waste and  
             hazardous substances.  Traditionally, laws related to  
             hazardous wastes and substances have been more  
             stringent than other environmental laws. 

                      WOULD A THREE-YEAR STATUTE OF LIMITATIONS BE  
             MORE  CONSISTENT WITH PRIOR ENACTMENTS?   


Support:     California District Attorneys Association


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AB 1174 (Cunneen)
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             Santa Clara Valley Water District
             Sierra Club
             Planning and Conservation League

Opposition:  Western States Petroleum Association
             Association of California Water Agencies
                                        

Prior Legislation:  AB 1378 (1990) Chaptered
                                                

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