BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 824                      HEARING:  5/1/13
          AUTHOR:  Committee on Governance & FinanceFISCAL:  No
          VERSION:  3/20/13                     TAX LEVY:  No
          CONSULTANT:  Miller                   

                   STATE BOARD OF EQUALIZAITON: ADMINSTRATION
          

             Corrects code references for the administration of BOE  
                                taxes and fees.


                    Background and Existing Law & Proposed Law  

          Under current Health and Safety Code an owner of an  
          underground storage tank is required to pay a storage fee  
          of six mills ($0.006) for each gallon of petroleum  
          (including, but not limited to, gasoline and diesel fuel)  
          placed in an underground storage tank which he or she owns.  
           There is an additional imposition of the underground  
          storage fee in another part of the Health & Safety Code of  
          eight mills ($0.008), for a total underground storage fee  
          of fourteen mills ($0.014) per gallon of petroleum placed  
          in the tank.  Section 25299.43 also provides in subdivision  
          (g) that the additional fee imposed shall be paid to the  
          BOE under the Underground Storage Tank Maintenance Fee Law  
          "in the same manner as, and consistent with, the fees  
          imposed under Section 24299.41." Senate Bill 824 amends the  
          Health and Safety Code Section 25299.43 to correctly  
          reference Section 25299.41 rather than 24299.41 as the  
          section imposing the underground storage tank maintenance  
          fee.

          Under existing law, the Fee Collection Procedures Law was  
          added to the Revenue and Taxation Code as Part 30  
          (commencing with Section 55001) of Division 2. Section  
          55001 provides that this "chapter shall be known and may be  
          cited as the Fee Collection Procedures Law." As such,  
          Section 55001 incorrectly cites a single chapter of the Fee  
          Collection Procedures Law rather than referencing the law  
          in its entirety as Part 30.  SB 824 amends Section 55001 to  
          make a non-substantive reference correction to the Fee  
          Collection Procedures Law, from "chapter" to "part.





          SB 824 -- 4/25/13 -- Page 2



          Under the existing Sales and Use Tax Law (7093.6), Use Fuel  
          Tax Law (9278), Cigarette and Tobacco Products Tax Law  
          (30459.15), Alcoholic Beverage Tax Law (32471.5), Emergency  
          Telephone Users Surcharge Act (41171.5), Oil Spill  
          Response, Prevention, and Administration Fees Law (46628),  
          Underground Storage Tank Maintenance Fee Law (50156.18),  
          Fee Collection Procedures Law (55332.5), and Diesel Fuel  
          Tax Law (60637), the BOE is allowed to compromise a final  
          tax liability if certain requirements are met.   SB 824  
          amends Section 55332.5, as amended by Section 593 of  
          Chapter 15 of the Statutes of 2001, to simply make a  
          technical and non-substantive correction to incorporate  
          missing language.




                               State Revenue Impact
           
          There is no revenue loss or gain associated with this bill.

                                     Comments  

          1.   Purpose of the bill  .  This bill is sponsored by the BOE  
          as a "code clean-up" to ensure efficient and accurate tax  
          administration.  As a committee bill, it will only contain  
          items to which all members of the committee agree.


                         Support and Opposition  (4/25/13)

           Support  :  BOE.

           Opposition  :  None Received.