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AB-1350 Department of Toxic Substances Control: environmental fee: exemption.(2021-2022)

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Date Published: 02/19/2021 09:00 PM
AB1350:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1350


Introduced by Assembly Member Patterson

February 19, 2021


An act to amend Section 25205.6 of the Health and Safety Code, relating to hazardous materials.


LEGISLATIVE COUNSEL'S DIGEST


AB 1350, as introduced, Patterson. Department of Toxic Substances Control: environmental fee: exemption.
Existing law requires the Department of Toxic Substances Control to provide the State Board of Equalization with a schedule of codes identifying the types of organizations that use, generate, store, or conduct activities in the state related to hazardous materials. Existing law requires each organization type identified in the schedule to pay an annual tax, known as the “environmental fee,” at a specified amount based on the number of employees at the organization, which is deposited in the Toxic Substances Control Account. Existing law requires the State Board of Equalization to annually adjust those amounts to reflect the increase or decrease in the cost of living, as provided.
This bill would exempt organizations with fewer than 100 employees from the annual tax until January 1, 2025.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 25205.6 of the Health and Safety Code is amended to read:

25205.6.
 (a) For purposes of this section, “organization” means a corporation, limited liability company, limited partnership, limited liability partnership, general partnership, and sole proprietorship.
(b) On or before November 1 of each year, the department shall provide the board California Department of Tax and Fee Administration with a schedule of codes, that consists of the types of organizations that use, generate, store, or conduct activities in this state related to hazardous materials, as defined in Section 25501, including, but not limited to, hazardous waste. The schedule shall consist of identification codes from one of the following classification systems, as deemed suitable by the department:
(1) The Standard Industrial Classification (SIC) system established by the United States Department of Commerce.
(2) The North American Industry Classification System (NAICS) adopted by the United States Census Bureau.
(c) Each organization of a type identified in the schedule adopted pursuant to subdivision (a) shall pay an annual fee, which shall be set in the following amounts:
(1) Two hundred dollars ($200) for those organizations with 50 or more employees, but fewer than 75 employees.
(2) Three hundred fifty dollars ($350) for those organizations with 75 or more employees, but fewer than 100 employees.
(3) Seven hundred dollars ($700) for those organizations with 100 or more employees, but fewer than 250 employees.
(4) One thousand five hundred dollars ($1,500) for those organizations with 250 or more employees, but fewer than 500 employees.
(5) Two thousand eight hundred dollars ($2,800) for those organizations with 500 or more employees, but fewer than 1,000 employees.
(6) Nine thousand five hundred dollars ($9,500) for those organizations with 1,000 or more employees.
(d) The fee imposed pursuant to this section shall be paid by each organization that is identified in the schedule adopted pursuant to subdivision (a) in accordance with Part 22 (commencing with Section 43001) of Division 2 of the Revenue and Taxation Code and shall be deposited in the Toxic Substances Control Account. The revenues shall be available, upon appropriation by the Legislature, for the purposes specified in subdivision (b) of Section 25173.6.
(e) For purposes of this section, the number of employees employed by an organization is the number of persons employed in this state for more than 500 hours during the calendar year preceding the calendar year in which the fee is due.
(f) The fee rates specified in subdivision (c) are the rates for the 1998 calendar year. Beginning with the 1999 calendar year, and for each calendar year thereafter, the State Board of Equalization California Department of Tax and Fee Administration shall adjust the rates annually to reflect increases or decreases in the cost of living during the prior fiscal year, as measured by the Consumer Price Index issued by the Department of Industrial Relations or by a successor agency.
(g) (1) Pursuant to paragraph (3) of subsection (c) of Section 104 104(c)(3) of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)), the state is obligated to pay specified costs of removal and remedial actions carried out pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).
(2) The fee rates specified in subdivision (c) are intended to provide sufficient revenues to fund the purposes of subdivision (b) of Section 25173.6, including appropriations in any given fiscal year to fund the state’s obligation pursuant to paragraph (3) of subsection (c) of Section 104 104(c)(3) of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9604(c)(3)).
(h) This section does not apply to a nonprofit corporation primarily engaged in the provision of residential social and personal care for children, the aged, and special categories of persons with some limits on their ability for self-care, as described in SIC Code 8361 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition.
(i) The changes made to this section by the act of the 2005–06 Regular Session of the Legislature amending this section shall not increase fee revenues in the 2006–07 fiscal year. Organizations with fewer than 100 employees, as identified in paragraphs (1) and (2) of subdivision (c), are exempt until January 1, 2025, from the fee imposed pursuant to this section.