1. (a) A violation of this subchapter or sections 14578 and 14578.5 of the Act constitutes grounds for the department to issue a Notice of Violation. The Notice of Violation shall be issued to a manager or other person in authority at the site of the violation and shall contain the information specified in paragraphs (1) to (4). A copy shall be legally served through certified mail with proof of service upon the dealer cooperative within 10 working days. The Notice of Violation served upon the dealer cooperative shall contain all of the following statements:

   1. (1) A statement of the violation(s) alleged.
   2. (2) The right to a hearing conducted pursuant to the department's hearing regulations (Title 14, California Code of Regulations, Sections 17063.1-17063.32).
   3. (3) The right to a hearing shall be deemed waived if the dealer cooperative fails to respond within 15 days from the date service of the Notice of Violation was received by the dealer cooperative, or the dealer cooperative's agent for service of process, stating that it wishes to assert that right and that, in the event of such failure to respond, the department shall assess any civil penalty specified in the Notice of Violation. The hearing request shall be submitted electronically in writing to an email address that the department specifies in the Notice of Violation. This requirement constitutes an express exception to title 14, California Code of Regulations, section 17063.4, which also allows mailing, and provides an alternative procedure requiring submission by email only.
   4. (4) A statement notifying the respondent about the nature of the violation(s), and the acts or omissions that form the basis of the violation(s).
2. (b) For violations of this subchapter and sections 14578 and 14578.5 of the Act by a dealer, the Notice of Violation specified in subdivision (a) shall be legally served through certified mail with proof of service upon the dealer.
3. (c) For civil penalties sought by the department that exceed the dollar amount specified in section 14591.1(a)(2) of the Act, the department shall provide for notice and a hearing regarding such penalties in accordance with the provisions of Chapter 5 (commencing with section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
4. (d) Interest on a penalty for a violation of this subchapter or section 14578 or 14578.5 of the Act shall accrue from the date the department decision regarding the payment becomes final.

Note: Authority cited: Sections 14530.5 and 14578.5, Public Resources Code. Reference: Sections 14578, 14578.5 and 14591.1, Public Resources Code.

History

1. New section filed 4-24-2025; operative 4-24-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 17).

2. Amendment of subsections (a)(2)-(4) filed 5-12-2026; operative 7-1-2026 (Register 2026, No. 20).