BILL NUMBER: SB 260	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wiggins

                        FEBRUARY 24, 2009

   An act to amend Section 13431 of the Business and Professions
Code, relating to petroleum products.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 260, as introduced, Wiggins. Petroleum products: motor oil.
   Existing provisions of law generally govern the sale of petroleum
products and establish a motor oil fee to be used for the
administration and enforcement of these provisions. Existing law
provides that persons involved in the sale of motor oil, as
specified, pay a maximum fee of $0.02 for each gallon of motor oil
sold or purchased on or after July 1, 1980. Existing law provides
that this fee may be established at a lower rate by the Secretary of
Food and Agriculture and that the secretary may, by regulation,
prescribe the frequency of payments, the procedures for such payment,
the procedures for refunds, and penalties for late payment. Existing
law provides that this fee be paid only once on any particular motor
oil and that it not apply to motor oil exported for sale outside of
California.
   This bill would instead provide that persons involved in the sale
of motor oil, as specified, pay a maximum fee of $0.05 for each
gallon of motor oil sold or purchased on or after January 1, 2010,
and that a fee of $0.03 for each gallon of motor oil sold or
purchased may be applied by the secretary prior to the adoption of
regulations.
   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 13431 of the Business and Professions Code is
amended to read:
   13431.  The following persons shall pay to the  director
  secretary  a maximum fee of  two cents
($0.02)   five cents ($0.05)  for each gallon of
motor oil sold or purchased on or after  July 1, 1980,
  January 1, 2010,  as hereinafter provided:
   (a) The first person who produced the motor oil shall pay the fee
when the motor oil is sold to any retail establishment or motor oil
dealer including any sold to the federal government, or its agencies.

   (b) A retailer shall pay the fee for motor oil received when he or
she transports or causes to be transported motor oil into this state
from out of state.
   (c) On any other sale of motor oil the dealer shall pay the fee
except that this subdivision shall not apply to any person selling
motor oil at retail.
   (d) The assessment provided for in this section shall only be paid
once on any particular motor oil. 
   The secretary may apply a fee of three cents ($0.03) for each
gallon of motor oil sold or purchased, as provided in subdivisions
(a) to (d), inclusive, prior to the adoption of regulations. 
   The provisions of this section shall not apply to motor oil
exported for sale outside this state.