BILL NUMBER: AB 2009	CHAPTERED  08/01/08

	CHAPTER  221
	FILED WITH SECRETARY OF STATE  AUGUST 1, 2008
	APPROVED BY GOVERNOR  AUGUST 1, 2008
	PASSED THE SENATE  JULY 2, 2008
	PASSED THE ASSEMBLY  JULY 14, 2008
	AMENDED IN SENATE  JUNE 18, 2008
	AMENDED IN ASSEMBLY  MAY 6, 2008

INTRODUCED BY   Assembly Members Hernandez and Huff

                        FEBRUARY 15, 2008

   An act to amend Section 7284.2 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2009, Hernandez.  Utility user taxes: exemption.
   Existing law authorizes the board of supervisors of any county to
levy a utility user tax on the consumption of electricity, gas,
water, sewer, telephone, telegraph, and cable television services in
the unincorporated area of the county.
   This bill would provide that no utility user tax shall be imposed
upon compressed natural gas dispensed by a gas compressor within a
local jurisdiction, as defined, if that natural gas is dispensed by a
gas compressor that is separately metered and dedicated to serve the
local agency or public transit operator.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to recognize that
public transit operators are moving towards the use of compressed
natural gas as the primary fuel source to meet air quality objectives
at the state and regional levels, as well as to provide vital public
transportation services to transit dependent citizens in California.
Further, the Mills-Hayes Act (Section 8655 of the Revenue and
Taxation Code) states that no tax shall be imposed upon fuel used by
public transit operations. Enactment of this legislation will clarify
that, pursuant to the Mills-Hayes Act, the use of compressed natural
gas as a motor vehicle fuel for use by local agencies or public
transit operators in the operation of public transit services shall
be exempt from any taxes imposed upon fuel.
  SEC. 2.  Section 7284.2 of the Revenue and Taxation Code is amended
to read:
   7284.2.  (a) The board of supervisors of any county may levy a
utility user tax on the consumption of electricity, gas, water,
sewer, telephone, telegraph, and cable television services in the
unincorporated area of the county.
   (b) For purposes of this section, "gas" shall not be construed as
referring to the consumption of compressed natural gas dispensed by a
gas compressor, within a local jurisdiction, that is separately
metered and is dedicated to providing compressed natural gas as a
motor vehicle fuel for use by the local agency or public transit
operator.
   (c) For purposes of this section, "local jurisdiction" means any
city, county, city and county, including any chartered city, county,
or city and county, district, or public or municipal corporation.
   (d) For purposes of this section "public transit operator" means a
local or regional transit agency or a joint powers agency operating
bus transportation service as defined pursuant to Article 1
(commencing with Section 99200) of Chapter 4 of Part 11 of Division
10 of the Public Utilities Code.