Amended in Assembly April 16, 2013

Amended in Assembly April 8, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 220

Introduced by Assembly Member Ting

(Coauthor: Assembly Member Ammiano)

February 4, 2013

An act to add and repeal Section6377 of the Revenue and Taxation Code, begin delete and to amend Section 5205.5 of the Vehicle Code, end delete relating to begin delete vehicles. end delete begin insert taxation, to take effect immediately, tax levy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 220, as amended, Ting. begin delete Vehicles: low emissions: financial incentives. end delete begin insert Sales and use taxes: exemption: low- end insert begin insert emission vehicles. end insert

(1) Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for the storage, use, or other consumption in this state, and provides various exemptions from those taxes.

The bill would, until January 1, 2018, exempt from those taxes the gross receipts from the sale of, and the storage, use, or other consumption of, specified low-emission vehicles purchased by a person.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law also authorizes districts, as specified, to impose transactions and use taxes in conformity with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated into these laws.

This bill would begin delete , until January 1, 2018, end delete specify that this exemption does not apply to local sales and use taxes.

begin delete

(2) Existing law, whenever the Department of Transportation or a local authority authorizes or permits exclusive or preferential use of highway lanes or highway access ramps for high-occupancy vehicles as specified, requires the use of those lanes or ramps to be extended to vehicles that are issued distinctive decals, labels, or other identifiers, as specified, regardless of vehicle occupancy or ownership. Existing law, for purposes of implementing that provision, requires the Department of Motor Vehicles to make available for issuance, for a fee determined by the department to be sufficient to reimburse the department for the actual costs incurred as specified, distinctive decals, labels, and other identifiers that clearly distinguish the specified vehicles from other vehicles, including, but not limited to a hybrid vehicle or an alternative fuel vehicle that meets California’s advanced technology partial zero-emission vehicle standard for criteria pollutant emissions and has a 45 miles per gallon or greater fuel economy highway rating, or a hybrid vehicle that was produced during the 2004 model-year or earlier and has a 45 miles per gallon or greater fuel economy highway rating, and meets California’s ULEV, SULEV, or partial zero-emission vehicle standards.

end delete begin delete

This bill would additionally require the department to make available for issuance, for a fee determined by the department as specified, distinctive decals, labels, and other identifiers that clearly distinguish the 2 types of vehicles specified in the latter provision that have been modified to become a plug-in hybrid, thus permitting these vehicles to use the highway lanes or highway access ramps otherwise reserved for high-occupancy vehicles.

end delete begin insert

(2) This bill would take effect immediately as a tax levy.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 6377 is added to the Revenue and
Taxation Code, to read:

6377.  

(a) There are exempted from the taxes imposed by this
part the gross receipts from the sale of, and the storage and use of,
or other consumption in this state of, any vehicle, as specified in
paragraphs (1) begin delete and end delete begin insert or end insert (5) of subdivision (a) of Section 5205.5 of
the Vehicle Code, or any successor to those provisions.

(b) Notwithstanding any provision of the Bradley-Burns
Uniform Local Sales and Use Tax Law (Part 1.5 (commencing
with Section 7200)) or the Transactions and Use Tax Law (Part
1.6 (commencing with Section 7251)), the exemption established
by this section shall not apply with respect to any tax levied by a
county, city, or district pursuant to, or in accordance with, either
of those laws.

(c) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

begin delete

SEC. 2.  

Section 5205.5 of the Vehicle Code, as amended by
Section 2 of Chapter 674 of the Statutes of 2012, is amended to
read:

5205.5.  

(a) For purposes of implementing Section 21655.9,
the department shall make available for issuance, for a fee
determined by the department to be sufficient to reimburse the
department for the actual costs incurred pursuant to this section,
distinctive decals, labels, and other identifiers that clearly
distinguish the following vehicles from other vehicles:

(1) A vehicle that meets California’s super ultra-low emission
vehicle (SULEV) standard for exhaust emissions and the federal
inherently low-emission vehicle (ILEV) evaporative emission
standard, as defined in Part 88 (commencing with Section
88.101-94) of Title 40 of the Code of Federal Regulations.

(2) A vehicle that was produced during the 2004 model-year or
earlier and meets California ultra-low emission vehicle (ULEV)
standard for exhaust emissions and the federal ILEV standard.

(3) A hybrid vehicle or an alternative fuel vehicle that meets
California’s advanced technology partial zero-emission vehicle
(AT PZEV) standard for criteria pollutant emissions and has a 45
miles per gallon or greater fuel economy highway rating.

(4) A hybrid vehicle that was produced during the 2004
model-year or earlier and has a 45 miles per gallon or greater fuel
economy highway rating, and meets California’s ULEV, SULEV,
or partial zero-emission vehicle (PZEV) standards.

(5) A vehicle that meets California’s enhanced advanced
technology partial zero-emission vehicle (enhanced AT PZEV)
standard.

(6) A hybrid vehicle referenced in paragraph (3) or (4) that has
been modified to become a plug-in hybrid vehicle.

(b) Neither an owner of a hybrid vehicle that meets the AT
PZEV standard, with the exception of a vehicle that meets the
federal ILEV standard, nor an owner of a hybrid vehicle described
in paragraph (4) of subdivision (a), is entitled to a decal, label, or
other identifier pursuant to this section unless the federal
government acts to approve the use of high-occupancy vehicle
(HOV) lanes by vehicles of the types identified in paragraph (3)
or (4) of subdivision (a), regardless of the number of occupants.

(c) The department shall include a summary of the provisions
of this section on each motor vehicle registration renewal notice,
or on a separate insert, if space is available and the summary can
be included without incurring additional printing or postage costs.

(d) The Department of Transportation shall remove individual
HOV lanes, or portions of those lanes, during periods of peak
congestion from the access provisions provided in subdivision (a),
following a finding by the Department of Transportation as follows:

(1) The lane, or portion thereof, exceeds a level of service C,
as discussed in subdivision (b) of Section 65089 of the Government
Code.

(2) The operation or projected operation of the vehicles
described in subdivision (a) in these lanes, or portions thereof, will
significantly increase congestion.

(e) The State Air Resources Board shall publish and maintain
a listing of all vehicles eligible for participation in the programs
described in this section. The board shall provide that listing to
the department.

(f) (1) For purposes of subdivision (a), the Department of the
California Highway Patrol and the department, in consultation
with the Department of Transportation, shall design and specify
the placement of the decal, label, or other identifier on the vehicle.
Each decal, label, or other identifier issued for a vehicle shall
display a unique number, which number shall be printed on, or
affixed to, the vehicle registration.

(2) Decals, labels, or other identifiers designed pursuant to this
subdivision for a vehicle described in paragraph (5) of subdivision
(a) shall be distinguishable from the decals, labels, or other
identifiers that are designed for vehicles described in paragraphs
(1), (2), (3), and (4) of subdivision (a).

(g) (1) (A) Except as provided in subparagraph (B), for
purposes of subdivision (a), the department shall issue no more
than 85,000 distinctive decals, labels, or other identifiers that
clearly distinguish the vehicles specified in paragraphs (3) and (4)
of subdivision (a).

(B) The department may issue a decal, label, or other identifier
for a vehicle that satisfies all of the following conditions:

(i) The vehicle is of a type identified in paragraph (3) or (4) of
subdivision (a).

(ii) The owner of the vehicle is the owner of a vehicle for which
a decal, label, or identifier described in subparagraph (A) was
previously issued and that vehicle for which the decal, label, or
identifier was previously issued is determined by the department,
on the basis of satisfactory proof submitted by the owner to the
department, to be a nonrepairable vehicle or a total loss salvage
vehicle.

(iii) The owner of the vehicle applied for a decal, label, or other
identifier pursuant to this subparagraph on or before March 31,
2009, or within six months of the date on which the vehicle for
which a decal, label, or identifier was previously issued is declared
to be a nonrepairable vehicle or a total loss salvage vehicle,
whichever date is later.

(2) The department shall notify the Department of Transportation
immediately after the date on which the department has issued
50,000 decals, labels, and other identifiers under this section for
the vehicles described in paragraphs (3) and (4) of subdivision (a).

(3) The Department of Transportation shall determine whether
significant HOV lane breakdown has occurred throughout the state,
in accordance with the following timeline:

(A) For lanes that are nearing capacity, the Department of
Transportation shall make the determination not later than 90 days
after the date provided by the department under paragraph (2).

(B) For lanes that are not nearing capacity, the Department of
Transportation shall make the determination not later than 180
days after the date provided by the department under paragraph
(2).

(4) In making the determination that significant HOV lane
breakdown has occurred, the Department of Transportation shall
consider the following factors in the HOV lane:

(A) Reduction in level of service.

(B) Sustained stop-and-go conditions.

(C) Slower than average speed than the adjacent mixed-flow
lanes.

(D) Consistent increase in travel time.

(5) After making the determinations pursuant to subparagraphs
(A) and (B) of paragraph (3), if the Department of Transportation
determines that significant HOV lane breakdown has occurred
throughout the state, the Department of Transportation shall
immediately notify the department of that determination, and the
department, on the date of receiving that notification, shall
discontinue issuing the decals, labels, or other identifiers for the
vehicles described in paragraphs (3) and (4) of subdivision (a).

(h) (1) Except as provided in paragraph (2), for purposes of
paragraph (5) of subdivision (a), the department shall issue no
more than 40,000 distinctive decals, labels, or other identifiers that
clearly distinguish a vehicle specified in paragraph (5) of
subdivision (a).

(2) The department may issue a decal, label, or other identifier
for a vehicle that satisfies all of the following conditions:

(A) The vehicle is of a type identified in paragraph (5) of
subdivision (a).

(B) The owner of the vehicle is the owner of a vehicle for which
a decal, label, or other identifier described in paragraph (1) was
previously issued and that vehicle for which the decal, label, or
other identifier was previously issued is determined by the
department, on the basis of satisfactory proof submitted by the
owner to the department, to be a nonrepairable vehicle or a total
loss salvage vehicle.

(C) The owner of the vehicle applied for a decal, label, or other
identifier pursuant to this paragraph within six months of the date
on which the vehicle for which a decal, label, or other identifier
was previously issued is declared to be a nonrepairable vehicle or
a total loss salvage vehicle.

(i) If the Metropolitan Transportation Commission, serving as
the Bay Area Toll Authority, grants toll-free and reduced-rate
passage on toll bridges under its jurisdiction to a vehicle pursuant
to Section 30102.5 of the Streets and Highways Code, it shall also
grant the same toll-free and reduced-rate passage to a vehicle
displaying an identifier issued by the department pursuant to
paragraph (1) or (2) of subdivision (a) and to a vehicle displaying
a valid identifier issued by the department pursuant to paragraph
(3) or (4) of subdivision (a) if the vehicle is registered to an address
outside of the region identified in Section 66502 of the Government
Code.

(j) An owner of a vehicle specified in paragraph (3) or (4) of
subdivision (a) whose vehicle is registered to an address in the
region identified in Section 66502 of the Government Code and
who seeks a vehicle identifier under subdivision (a) in order to
have access to an HOV lane within the jurisdiction of the Bay Area
Toll Authority shall do both of the following:

(1) Obtain and maintain an active account to operate within the
automatic vehicle identification system described in Section 27565
of the Streets and Highways Code and shall submit to the
department a form, approved by the department and issued by the
Bay Area Toll Authority, that contains the vehicle owner’s name,
the license plate number and vehicle identification number of the
vehicle, the vehicle make and year model, and the automatic
vehicle identification system account number, as a condition to
obtaining a vehicle identifier pursuant to subdivision (a) that allows
for the use of that vehicle in HOV lanes regardless of the number
of occupants.

(2) Be eligible for toll-free or reduced-rate passage on toll
bridges within the jurisdiction of the Bay Area Toll Authority only
if, at time of passage, the vehicle meets the passenger occupancy
rate requirement established for that toll-free or reduced-rate
passage.

(k) (1) Notwithstanding Section 21655.9, and except as
provided in paragraph (2), a vehicle described in subdivision (a)
that displays a decal, label, or identifier issued pursuant to this
section shall be exempt from toll charges imposed on
single-occupant vehicles in high-occupancy toll lanes as described
in Section 149.7 of the Streets and Highways Code unless
prohibited by federal law.

(2) (A) Paragraph (1) does not apply to the imposition of a toll
imposed for passage on a toll road or toll highway, that is not a
high-occupancy toll lane as described in Section 149.7 of the
Streets and Highways Code.

(B) On or before March 1, 2014, paragraph (1) does not apply
to the imposition of a toll imposed for passage in lanes designated
for tolls pursuant to the federally supported value-pricing and
transit development demonstration program operated pursuant to
Section 149.9 of the Streets and Highways Code for State Highway
Route 10 or 110.

(C) Paragraph (1) does not apply to the imposition of a toll
charged for crossing a state-owned bridge.

(l) If the Director of Transportation determines that federal law
does not authorize the state to allow vehicles that are identified by
distinctive decals, labels, or other identifiers on vehicles described
in subdivision (a) to use highway lanes or highway access ramps
for high-occupancy vehicles regardless of vehicle occupancy, the
Director of Transportation shall submit a notice of that
determination to the Secretary of State.

(m) (1) This section shall remain in effect only until January
1, 2015, or until the date the Secretary of State receives the notice
described in subdivision (l), whichever occurs first, and as of that
date is repealed.

(2) However, with respect to a vehicle described in paragraph
(3) or (4) of subdivision (a), this section shall be operative only
until July 1, 2011, or only until the date the Secretary of State
receives the notice described in subdivision (l), whichever occurs
first.

(3) With respect to a vehicle described in paragraph (5) of
subdivision (a), this section shall become operative on January 1,
2012, and shall be operative only until January 1, 2015, or until
the date the Secretary of State receives the notice described in
subdivision (l), whichever occurs first.

end delete

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begin insert SEC. 2. end insert   

end insert begin insert

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

end insert