BILL NUMBER: AB 1442	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 5, 2015

INTRODUCED BY   Assembly Members O'Donnell and Brough

                        FEBRUARY 27, 2015

   An act to amend Sections 7318 and 8651.8  of 
 of, and to add Section 8623 to,  the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1442, as amended, O'Donnell. Motor vehicle fuel: gasohol.
   Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon
the privilege of distributing motor fuel and defines the term
"gasohol" for purposes of that law. Gasohol is defined as all blends
of  gasoline,   gasoline  and alcohol
containing more than 15% gasoline.
   This bill would redefine gasohol to instead mean all blends of
 gasoline,   gasoline  and alcohol
containing more than 21%  gasoline.   or a
percentage determined by regulations adopted by the State Board of
Equalization, as specified. 
   Existing law, the Use Fuel Tax Law, imposes an excise tax for the
use of fuel, as defined, and  provides  
requires  that the excise tax imposed upon ethanol or methanol
containing not more than 15% gasoline or diesel fuels  shall
 be 1/2 of that rate.  That law provides for refunds for
cert   ain overpayments of tax within a specified time
period. 
   This  bill   bill, beginning on and after
January 1, 2013,  would instead apply that discounted rate to
ethanol or methanol containing not more than 21%  gasoline
  gasoline, blended ethanol fuel, as defined,  or
diesel  fuel.   fuels. 
   This bill would take effect immediately as a tax levy.
   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 7318 of the Revenue and Taxation Code is
amended to read:
   7318.  "Gasohol" means all blends of  gasoline, 
 gasoline  and alcohol containing more than 21 percent
 gasoline.   gasoline, or a percentage adopted
by board regulation as specified in Section 8623. 
   SEC. 2.    Section 8623 is added to the  
Revenue and Taxation Code   , to read:  
   8623.  "Blended ethanol fuel" is defined as a fuel blend
consisting of ethanol and gasoline that meets one of the following
requirements:
   (a) Contains not more than 21 percent gasoline.
   (b) Contains not more than a percentage of gasoline, as specified
by board regulation, that is consistent with the E-85 Fuel Ethanol
Specifications of Section 2292.4 of Title 13 of the California Code
of Regulations. 
   SEC. 2.   SEC. 3.   Section 8651.8 of
the Revenue and Taxation Code is amended to read:
   8651.8.  (a)  (1)    Notwithstanding Section
8651, the excise tax imposed upon ethanol or methanol containing not
more than  21   15  percent gasoline or
diesel fuels shall be one-half the rate prescribed by Section 8651
for each gallon of fuel used. 
   (2) This subdivision shall only apply to ethanol, methanol, or
diesel fuels sold before January 1, 2013. 
   (b) All references in this code to Section 8651 shall be deemed,
with respect to the rate imposed upon  ethanol  
blended ethanol fuel, ethanol,  or methanol, to also refer to
this section. 
   (c) Notwithstanding Section 8651, on or after January 1, 2013, the
excise tax imposed on ethanol or methanol containing not more than
21 percent gasoline, blended ethanol fuel, or diesel fuels shall be
one-half the rate prescribed by Section 8651 for each gallon of fuel
used. 
   SEC. 4.    The Legislature finds and declares that
this act serves a public purpose and does not constitute a gift of
public funds within the meaning of Section 6 of Article XVI of the
California Constitution. 
   SEC. 3.   SEC. 5.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.