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d t I LEGAL BASIS FOR ENFORCEMENT ACTION 2 A number of environmental protection and consumer protection laws are relevant to thi. 3 civil enforcement action. Chapter 6.5 of Division 20 of the Health and Safety Code i� 4 California's "cradle to grave" regulatory program governing the generation, handling, treatment, 5 storage and disposal of hazardous wastes. Chapter 6.95 of Division 20 of the Health & Safety 6 Code is California's primary regulatory scheme governing hazardous materials management. 7 The enforcement provisions of these laws provide the legal grounds for the imposition of 8 injunctive relief and civil penalties. 9 K MART also is subject to the Unfair Competition Law (UCL). (Cal. Bus. & Prof Code 10 § 17200 et seq.) The alleged substantive violations of Chapters 6.5 and 6.95 of Division 20 of 11 the Health and Safety Code provide the basis for the violations of the UCL alleged in the 12 Complaint. 13 THE PROPOSED RESOLUTION 14 The proposed civil resolution is embodied in the proposed Final Judgment, a copy of 15 which is attached to the Declaration of David J Irey as Exhibit "A" Under the terms of the 16 Final Judgment K MART is required to pay civil penalties and cy pres restitution, fund 17 supplemental environmental projects and pay costs in the total amount of eight million six 18 hundred and fifty thousand dollars ($8,650,000.00). More specifically, the proposed Final 19 Judgment contains the following material provisions: 20 1. Payments for Civil Penalties, Costs and Supplemental Environmental 21 Projects. 22 a. Civil Penalties: K MART is to pay civil penalties in the amount of two 23 million eight hundred thousand dollars ($2,800,000.00) pursuant to 17206 of the Business and 24 Professions Code and six hundred thousand dollars ($600,000.00) pursuant to section 25515.2 of 25 the Health and Safety Code, to be disbursed as set forth in Exhibit B attached to the Final 26 Judgment. In addition, K MART is obligated to pay one million six hundred thousand dollars 27 ($1,600,000.00) in civil penalties pursuant to section 17206 of the Business and Professions 28 Code. However, the payment of the additional one million six hundred thousand dollars -5- MEMORANDUM OF POINTS AND AUTHORITIES