Bob,
I agree, $440 sounds way out of line. Below is some information I found regarding the requirement. There is a phone number at the bottom that might be worth calling to get an explanation of the fine. I think calling and/or sending a letter to the offices of your State Assemblyman and Senator would be appropriate.

http//ohv.parks.ca.gov/pages/1170/files/news%20release%20ow%20whips%20&%20flags.pdf

Ed - Orange County - 63 VW Dune Runner Buggy - 69 Baja Bug

M/C 1637, RBC, DSB, SoCal Baja