AB 39 — VLF state parks fee: fuel taxes: emergency services surcharge: cigarettes and other tobacco products tax: oil severance tax.

Summary

Existing law provides that the Insurance Commissioner, in cooperation with insurers, the Office of Emergency Services, and other emergency service agencies, shall establish procedures for the coordination of efforts between insurers and their representatives and those of emergency response agencies. This bill would create the Emergency Response Fund in the State Treasury. Insureds would be required to pay a special purpose surcharge at a rate of 4.8% (or as adjusted) on commercial and residential fire and multiperil insurance policies, including policies with combined property and liability coverage, issued or renewed on or after January 1, 2010, as specified. Funds from this surcharge would be available for appropriation by the Legislature to fund emergency activities, as defined, of the California Emergency Management Agency, the Department of Forestry and Fire Protection, and the Military Department. Any balance remaining in the fund at the end of a fiscal year would be retained and carried forward to the next fiscal year. This bill would require insurers collecting the surcharge to make a specified disclosure on the policy declarations page, billing statement, or a separate document accompanying the declarations page or billing statement. This bill would also require the Department of Insurance, the Department of Forestry and Fire Protection, and other state agencies and departments to cooperate and provide information to the California Emergency Management Agency as necessary to implement these provisions. The Vehicle License Fee (VLF) Law establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state. Under the California Constitution and existing law, the fees are deposited into the Vehicle License Fee Account of the Local Revenue Fund in the State Treasury for allocation to cities, counties, and cities and counties. This bill would additionally impose an annual surcharge in the amount of $15 on every vehicle subject to the VLF to sustain the operation and maintenance of the state park system, among other things. The bill would create the State Parks Access Fund in the State Treasury and would require that the $15 surcharge be deposited in this fund to be used for specified purposes by the Department of Parks and Recreation upon appropriation by the Legislature. The Motor Vehicle Fuel License Tax Law imposes a tax of $0.18 per gallon of fuel and requires, if the federal fuel tax is reduced below the rate of $0.09 per gallon and federal financial allocations to this state are reduced or eliminated, that the tax rate be increased so that the combined state and federal tax rate per gallon equals $0.27. The Diesel Fuel Tax Law imposes a tax of $0.18 upon each gallon of fuel, as provided. This bill would eliminate those fuel taxes on October 1, 2009. The Cigarette and Tobacco Products Tax Law, the violation of which is a crime, imposes a tax on every distributor of cigarettes and tobacco products at specified rates, including additional taxes imposed under the Tobacco Tax and Health Protection Act of 1988 (Proposition 99) and the California Families and Children Act of 1998 (Proposition 10) . That law imposes a tax upon the distribution of tobacco products at a tax rate which is equivalent to the combined rate of all taxes imposed on cigarettes, which is deposited in specified accounts. This bill would, commencing on October 1, 2009, impose an additional excise tax on the distribution of cigarettes at the rate of $0.075 for each cigarette distributed, which would, under Proposition 99, impose an equivalent tax rate on the distribution of tobacco products. This bill would also impose a tax upon the distribution of tobacco products at the same equivalent tax rate, as specified. The bill would impose a floor stock tax and require a dealer or wholesaler to file a return with the State Board of Equalization showing the number of cigarettes in his or her possession or under his or her control on that date, as specified, and to remit the tax to the board. The revenues collected from the additional tax, except as specified, would be deposited in the General Fund. Because this bill would impose new requirements under the Cigarette and Tobacco Products Law, the violation of which is a crime, it would impose a state-mandated local program. Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges. This bill would impose an oil severance tax on and after October 1, 2009, upon any producer for the privilege of severing oil from the earth or water in this state for sale, transport, consumption, storage, profit, or use, as provided, at the rate of 9.9% (or as adjusted) of the gross value of each barrel of oil severed. The tax would be administered by the Department of Conservation and would be collected pursuant to the procedures set forth in the Fee Collection Procedures Law. The bill would require the department to deposit all tax revenues, penalties, and interest collected pursuant to these provisions into the General Fund. Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 19, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 19, 2008, pursuant to the California Constitution. This bill would take effect immediately as a tax levy.

Bill Text

• Amended 06/28/09 - Amended Assembly Current pdf June 28, 2009
• Introduced 06/18/09 - Introduced pdf June 18, 2009
• AB39 View text html

Action History

1. October 27, 2009

   From Senate committee without further action.

2. June 28, 2009

   In Senate. Read first time. To Com. on RLS. for assignment.

3. June 28, 2009

   (Corrected July 21.)

4. June 28, 2009

   Read third time, passed, and to Senate. (Ayes 44. Noes 31. Page 282.)

5. June 28, 2009

   (Ayes 47. Noes 28. Page 281.)

6. June 28, 2009

   Read third time and amended.

7. June 22, 2009

   Read second time. To third reading.

8. June 22, 2009

   Ordered to second reading.

9. June 22, 2009

   Without reference to committee.

10. June 19, 2009

    From printer.

11. June 18, 2009

    Read first time. To print.

Sponsors

• Evans · Primary

Votes

Subjects