BILL ANALYSIS
AB 2788
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Date of Hearing: May 10, 2010
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Anthony J. Portantino, Chair
AB 2788 (Committee on Revenue and Taxation) - As Introduced:
March 9, 2010
Majority vote. Tax levy. Fiscal committee.
SUBJECT : State Board of Equalization: administration
SUMMARY : Implements two technical and non-controversial tax
proposals sponsored by the State Board of Equalization (BOE).
Specifically, this bill :
1)Implements BOE Proposal 4-1 by amending both the Public
Resources Code (PRC) and the Revenue and Taxation Code (R&TC)
to reflect recent changes in the state government's
organizational structure. Specifically, this proposal:
a) Corrects responsible state agency references in the
Emergency Telephone Users Surcharge Act (R&TC Section 41001
et seq.) to conform to the Governor's Reorganization Plan
No. 1 of 2009, which transferred duties of the Division of
Telecommunications in the Department of General Services to
the office of the State Chief Information Officer;
b) Corrects responsible state agency references in the
Integrated Waste Management Fee Law (R&TC Section 45001 et
seq.) to conform to SB 63 (Strickland), Chapter 21,
Statutes of 2009, which abolished the California Integrated
Waste Management Board and transferred its duties to the
Department of Resources Recycling and Recovery within the
California Natural Resources Agency; and,
c) Deletes the obsolete definition of "board" contained in
the Electronic Waste Recycling Act of 2003 (PRC Section
42460 et seq.).
2)Implements BOE Proposal 4-4 by reclassifying alcohol fuel
(commonly known as E85) from the Use Fuel Tax Law to the Motor
Vehicle Fuel Tax Law to conform the reporting requirements
with those for gasoline and diesel fuel.
AB 2788
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3)Takes immediate effect as a tax levy.
EXISTING LAW :
1)Transferred, pursuant to the Governor's Reorganization Plan
No. 1 of 2009, duties of the Division of Telecommunications in
the Department of General Services to the office of the State
Chief Information Officer, including duties related to
implementing revenue generating procedures for the 911
emergency telephone system.
2)Abolished the California Integrated Waste Management Board and
transferred specified duties of the board to the Department of
Resources Recycling and Recovery, including duties related to
electronic waste.
3)Imposes an excise tax of $0.18 per gallon for the use of fuels
under the Use Fuel Tax Law.
FISCAL EFFECT : Unknown.
COMMENTS :
1)BOE Proposal 4-1 : As noted above, this purely housekeeping
measure would amend both the PRC and the R&TC to reflect
recent changes in the state government's organizational
structure. Specifically, this proposal would correct
responsible state agency references in the Emergency Telephone
Users Surcharge Act to conform to the Governor's
Reorganization Plan No. 1 of 2009. This proposal would also
correct responsible state agency references in the Integrated
Waste Management Fee Law. Finally, this proposal would delete
the obsolete definition of "board" contained in the Electronic
Waste Recycling Act of 2003.
2)BOE Proposal 4-4 : This proposal reclassifies alcohol fuel
(commonly known as E85) from the Use Fuel Tax Law to the Motor
Vehicle Fuel Tax Law to conform the reporting requirements
with those for gasoline and diesel fuel. As BOE notes,
"reclassifying alcohol fuel from a use fuel to a motor vehicle
fuel shifts the responsibility for collection and payment of
the excise tax from the vendor to the supplier, thereby easing
the compliance and reporting burden of the vendors and
providing administrative efficiencies to [BOE]." It should be
noted that BOE has recently identified a number of highly
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technical concerns with the current language for this
proposal. Committee staff and BOE are currently working
together to address these issues.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098