BILL NUMBER: SB 788 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Transportation and Housing (Senators
DeSaulnier (Chair), Beall, Cannella, Gaines, Galgiani, Hill, Lara,
Liu, Pavley, Roth, and Wyland)
FEBRUARY 22, 2013
An act to amend Section 6480.1 of the Revenue and Taxation Code,
and to amend Section 14606 of the Vehicle Code, relating to
transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 788, as introduced, Committee on Transportation and Housing.
Transportation.
(1) Existing law requires that on July 1 of each succeeding year,
the prepayment rate per gallon for aircraft jet fuel, rounded to the
nearest $0.005, be established by the State Board of Equalization
based upon 80% of the combined state and local sales tax rate and the
California Constitution, as specified, on the arithmetic average
selling price, excluding sales and state excise taxes, as determined
by the board. Existing law requires the board to make its
determination of the rate no later than March 1 of the year prior to
the effective date of the new rate. Existing law requires the rate of
the prepayment required to be collected for aircraft jet fuel be
equal to 80% of the arithmetic average selling price of aircraft jet
fuel as specified by industry publications. Existing law requires
that immediately upon making its determination and setting of the
rate, the board must each year, no later than May 1, notify every
supplier, wholesaler, and retailer of aircraft jet fuel. Existing law
permits the board to readjust the rate in the event the price of
aircraft jet fuel decreases or increases, and the established rate
results in prepayments that consistently exceed or are significantly
lower than the retailers' sales tax liability.
This bill would revise the provision that requires the board to
make its determination of the rate no later than March 1 of the year
prior to the effective date of the new rate, and instead would
require this determination to be made no later than March 1 of the
same year as the effective date of the new rate.
(2) Existing law prohibits a person from employing, hiring,
knowingly permitting, or authorizing any person to drive a motor
vehicle owned by him or her or under his or her control upon the
highways unless that person is licensed for the appropriate class of
vehicle to be driven. Existing law requires that whenever a person
fails to qualify, on reexamination, to operate a commercial motor
vehicle, an employer shall report that failure to the Department of
Motor Vehicles within 10 days. Existing law requires that, until
January 30, 2014, if a driver has no medical certification status
information in the Commercial Driver License Information System motor
vehicle record obtained from the driver's state licensing agency,
the employing motor carrier may accept as proof of medical
certification a medical examiner's certificate issued to that driver
prior to January 30, 2012. Existing law, operative January 1, 2014,
requires an employer to obtain from a driver required to have a
commercial driver's license or commercial endorsement a copy of the
driver's medical certification before allowing the driver to operate
a commercial motor vehicle. Existing law requires the employer to
retain the certification as part of a driver qualification file.
This bill would change the provision with an operative date of
January 1, 2014, to January 30, 2014.
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 6480.1 of the Revenue and Taxation Code is
amended to read:
6480.1. (a) At any time that motor vehicle fuel tax or diesel
fuel tax is imposed or would be imposed, but for the dyed diesel fuel
exemption in paragraph (1) of subdivision (a) of Section 60100, or
the train operator exemption in paragraph (7) of subdivision (a) of
Section 60100 or paragraph (11) of subdivision (a) of Section 7401,
or, pursuant to subdivision (f) of Section 6480, would be deemed to
be imposed, on any removal, entry, or sale in this state of motor
vehicle fuel, aircraft jet fuel, or diesel fuel, the supplier shall
collect prepayment of retail sales tax from the person to whom the
motor vehicle fuel, aircraft jet fuel, or diesel fuel is sold.
However, if no sale occurs at the time of imposition of motor vehicle
fuel tax or diesel fuel tax, the supplier shall prepay the retail
sales tax on that motor vehicle fuel, aircraft jet fuel, or diesel
fuel. The prepayment required to be collected by the supplier
constitutes a debt owed by the supplier to this state until paid to
the board, until satisfactory proof has been submitted to prove that
the retailer of the fuel has paid the retail sales tax to the board,
or until a supplier or wholesaler who has consumed the fuel has paid
the use tax to the board. Each supplier shall report and pay the
prepayment amounts to the board, in a form as prescribed by the
board, in the period in which the fuel is sold. On each subsequent
sale of that fuel, each seller, other than the retailer, shall
collect from his or her purchaser a prepayment computed using the
rate applicable at the time of sale. Each supplier shall provide his
or her purchaser with an invoice for, or other evidence of, the
collection of the prepayment amounts which shall be separately stated
thereon.
(b) (1) A wholesaler shall collect prepayment of the retail sales
tax from the person to whom the motor vehicle fuel, aircraft jet
fuel, or diesel fuel is sold. Each wholesaler shall provide his or
her purchaser with an invoice for or other evidence of the collection
of the prepayment amounts, which shall be separately stated thereon.
(2) Each wholesaler shall report to the board, in a form as
prescribed by the board and for the period in which the motor vehicle
fuel, aircraft jet fuel, or diesel fuel was sold, all of the
following:
(A) The number of gallons of fuel sold and the amount of sales tax
prepayments collected by the wholesaler.
(B) The number of tax-paid gallons purchased and the amount of
sales tax prepayments made by the wholesaler.
(C) In the event that the amount of sales tax prepayments
collected by the wholesaler is greater than the amount of sales tax
prepayments made by the wholesaler, then the excess constitutes a
debt owed by the wholesaler to the state until paid to the board, or
until satisfactory proof has been submitted that the retailer of the
fuel has paid the tax to the board.
(c) A supplier or wholesaler who pays the prepayment and issues a
resale certificate to the seller, but subsequently consumes the motor
vehicle fuel, aircraft jet fuel, or diesel fuel, shall be entitled
to a credit against his or her sales and use taxes due and payable
for the period in which the prepayment was made, provided that he or
she reports and pays the use tax to the board on the consumption of
that fuel.
(d) The amount of a prepayment paid by the retailer or a supplier
or wholesaler who has consumed the motor vehicle fuel, aircraft jet
fuel, or diesel fuel to the seller from whom he or she acquired the
fuel shall constitute a credit against his or her sales and use taxes
due and payable for the period in which the sale was made. Failure
of the supplier or wholesaler to report prepayments or the supplier's
or wholesaler's failure to comply with any other duty under this
article shall not constitute grounds for denial of the credit to the
retailer, supplier, or wholesaler, either on a temporary or permanent
basis or otherwise. To be entitled to the credit, the retailer,
supplier, or wholesaler shall retain for inspection by the board any
receipts, invoices, or other documents showing the amount of sales
tax prepaid to his or her supplier, together with the evidence of
payment.
(e) The rate of the prepayment required to be collected during the
period from July 1, 1986, through March 31, 1987, shall be four
cents ($0.04) per gallon of motor vehicle fuel distributed or
transferred.
(f) The rate of prepayment required to be collected for motor
vehicle fuel, aircraft jet fuel, and diesel fuel as established by
the board in effect on January 1, 2013, shall remain in effect
through June 30, 2013.
(g) On July 1 of each succeeding year, the prepayment rate per
gallon for motor vehicle fuel, rounded to the nearest one-half of one
cent ($0.005), of the required prepayment shall be established by
the board based upon 80 percent of the combined state and local sales
tax rate established by Sections 6051, 6051.2, 6051.3, 6051.5, 7202,
and 7203.1, and Section 35 of Article XIII of the California
Constitution on the arithmetic average selling price (excluding sales
tax) as reported by an industry publication of all grades of
gasoline sold through a self-service gasoline station. The board
shall make its determination of the rate no later than March 1 of the
same year as the effective date of the new rate. Immediately upon
making its determination and setting of the rate, the board shall
each year, no later than May 1, notify every supplier, wholesaler,
and retailer of motor vehicle fuel. In the event the price of fuel
decreases or increases or an exemption from sales tax for sales of
fuel is enacted, and the established rate results in or could result
in prepayments which consistently exceed or are significantly lower
than the retailers' sales tax liability, the board may readjust the
rate.
(h) On July 1 of each succeeding year, the prepayment rate per
gallon for aircraft jet fuel, rounded to the nearest one-half of one
cent ($0.005), shall be established by the board based upon 80
percent of the combined state and local sales tax rate established by
Sections 6051, 6051.2, 6051.3, 6051.5, 7202, and 7203.1, and Section
35 of Article XIII of the California Constitution on the arithmetic
average selling price (excluding sales and state excise taxes) as
determined by the board. The board shall make its determination of
the rate no later than March 1 of the same year
prior to as the effective date of the new rate.
The rate of the prepayment required to be collected for aircraft jet
fuel shall be equal to 80 percent of the arithmetic average selling
price of aircraft jet fuel as specified by industry publications.
Immediately upon making its determination and setting of the rate,
the board shall each year, no later than May 1, notify every
supplier, wholesaler, and retailer of aircraft jet fuel. In the event
the price of aircraft jet fuel decreases or increases, and the
established rate results in prepayments that consistently exceed or
are significantly lower than the retailers' sales tax liability, the
board may readjust the rate.
(i) On July 1 of each succeeding year, the prepayment rate per
gallon for diesel fuel, rounded to the nearest one-half of one cent
($0.005), shall be established by the board based upon 80 percent of
the combined state and local sales tax rate established by Sections
6051, 6051.2, 6051.3, 6051.5, 6051.8, 7202, and 7203.1, and Section
35 of Article XIII of the California Constitution on the arithmetic
average selling price (excluding sales and state excise taxes) as
determined by the board. The board shall make its determination of
the rate no later than March 1 of the same year as the effective date
of the new rate. The rate of the prepayment required to be collected
for diesel fuel shall be equal to 80 percent of the arithmetic
average selling price of diesel fuel as specified by industry
publications. Immediately upon making its determination and setting
of the rate, the board shall each year, no later than May 1, notify
every supplier, wholesaler, and retailer of diesel fuel. In the event
the rate of sales tax imposed on sales of diesel fuel increases or
decreases or the price of diesel fuel decreases or increases, and the
established rate results in or could result in prepayments that
consistently exceed or are significantly lower than the retailers'
sales tax liability, the board may readjust the rate.
(j) (1) Notwithstanding any other provision of this section, motor
vehicle fuel sold by a supplier or wholesaler to a qualified
purchaser who, pursuant to a contract with the State of California or
its instrumentalities, resells that fuel to the State of California
or its instrumentalities shall be exempt from the prepayment
requirements.
(2) A qualified purchaser who acquires motor vehicle fuel for
subsequent resale to the State of California or its instrumentalities
pursuant to this subdivision shall furnish to the supplier or
wholesaler from whom the fuel is acquired an exemption certificate,
completed in accordance with any instructions or regulations as the
board may prescribe. The supplier or wholesaler shall retain the
certificate in his or her records in support of the exemption. To
qualify for the prepayment exemption, both of the following
conditions shall apply:
(A) The qualified purchaser does not take possession of the fuel
at any time.
(B) The fuel is delivered into storage tanks owned or leased by
the State of California or its instrumentalities via facilities of
the supplier or wholesaler, or by common or contract carriers under
contract with the supplier or wholesaler.
(3) For purposes of this subdivision, "qualified purchaser" means
a wholesaler who does not have or maintain a storage facility or
facilities for the purpose of selling motor vehicle fuel.
SEC. 2. Section 14606 of the Vehicle Code, as added by Section 7
of Chapter 670 of the Statutes of 2012, is amended to read:
14606. (a) A person shall not employ, hire, knowingly permit, or
authorize any person to drive a motor vehicle owned by him or her or
under his or her control upon the highways unless that person is
licensed for the appropriate class of vehicle to be driven.
(b) Whenever a person fails to qualify, on reexamination, to
operate a commercial motor vehicle, an employer shall report that
failure to the department within 10 days.
(c) An employer shall obtain from a driver required to have a
commercial driver's license or commercial endorsement a copy of the
driver's medical certification before allowing the driver to operate
a commercial motor vehicle. The employer shall retain the
certification as part of a driver qualification file.
(d) This section shall become operative on January 1,
30, 2014.