BILL ANALYSIS SB 70 Page 1 ( Without Reference to File ) SENATE THIRD READING SB 70 ( Budget and Fiscal Review Committee) As Amended March 22, 2010 Majority vote SENATE VOTE :Vote not relevant SUMMARY : Deletes the current version of this bill and instead, makes technical changes to clarify that those entities that are currently exempt from either paying excise taxes on diesel or the sales tax on gasoline would not be subject to the fuel tax increases contained in AB 6 X8 (Budget Committee) of the 2009-2010 session. Specifically, this bill: 1)Excludes from the diesel sales tax increase the "dyed-diesel" users, such as railroads and off-road equipment, which are exempt in current law from the excise tax but pay the sales tax. 2)Excludes from the diesel sales tax increase those that pay only the 1 cent excise tax rate such as school and transit buses. 3)Excludes from the gasoline excise tax increase users of aircraft fuel that are exempt from the sales tax under current law but are required to pay the excise tax. 4)Amends the sales tax pre-payment provisions for both gas and diesel to allow the Board of Equalization to adjust pre-payment requirements to match the rate of taxes being levied. 5)Amends the true-up provisions to clarify intent that the March 1 true-up calculation becomes effective during the next fiscal year following the calculation. Analysis Prepared by : Keali'i Bright / BUDGET / (916) 319-2099 FN: 0003775