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