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AB-327 South Coast Air Quality Management District: fleets.(2017-2018)

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Date Published: 06/04/2018 02:00 PM
AB327:v97#DOCUMENT

Amended  IN  Senate  June 04, 2018
Amended  IN  Assembly  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 327


Introduced by Assembly Member Gipson
(Coauthor: Assembly Member Brough)

February 07, 2017


An act to add and repeal Section 6010.15 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. amend Section 40447.5 of the Health and Safety Code, relating to vehicular air pollution.


LEGISLATIVE COUNSEL'S DIGEST


AB 327, as amended, Gipson. Sales and use taxes: exclusion: pawnbrokers: transfer of vested property. South Coast Air Quality Management District: fleets.
Existing law authorizes the governing board of the South Coast Air Quality Management District to adopt rules and regulations that require specified operators of public and commercial fleet vehicles consisting of 15 or more vehicles, when adding vehicles or replacing vehicles in an existing fleet or forming a new fleet, to purchase vehicles that are capable of operating on methanol or other equivalently clean-burning alternative fuel and that require these vehicles to be operated, to the maximum extent feasible, on the alternative fuel when operating in the south coast district.
This bill instead would authorize the governing board of the south coast district to adopt rules and regulations that require specified operators of public and commercial fleet vehicles consisting of 15 or more vehicles to purchase the cleanest commercially available vehicles, as defined, that will meet the operator’s operational needs; to require the replacement of no more than 15% of existing vehicles per calendar year, as specified; and to require those cleanest commercially available vehicles to be operated, to the maximum extent feasible, in the south coast district.
This bill would make legislative findings and declarations as to the necessity of a special statute for the south coast district.

Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. Existing law defines “sale” and “purchase” for these purposes and provides certain exclusions from those definitions.

Existing law regulates pawnbrokers by, among other things, requiring every loan made by a pawnbroker for which goods are received in pledge as security to be evidenced by a written contract, a copy of which is required to be furnished to the pledgor. Existing law requires the loan period of a loan contract to be no less than 4 months, and requires the loan contract to set forth the loan period, the date on which the loan is due and payable, and to clearly inform the pledgor of his or her right to redeem the pledge during the loan period. Existing law provides procedures by which a pawnbroker may become vested with the title to pledged property.

This bill, until January 1, 2022, would provide that “sale” and “purchase” do not include the transfer of vested property, as defined, by a pawnbroker to a person who pledged the property to the pawnbroker as security for a loan and from whom title transferred to the pawnbroker if specified requirements are met, thus excluding that transfer from imposition of sales and use tax.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions.

This bill would provide that, notwithstanding these provisions, no appropriation is made and the state shall not reimburse cities and counties for sales and use tax revenues lost by them pursuant to this bill.

This bill would take effect immediately as a tax levy.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: NO  

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


SECTION 1.

 Section 40447.5 of the Health and Safety Code is amended to read:
40447.5.

Notwithstanding

40447.5.
 (a) For purposes of this section, the following definitions apply:
(1) “Cleanest commercially available vehicle” means a vehicle operated with a fuel or technology that substantially reduces emissions of oxides of nitrogen and is technically feasible, as defined by the south coast district board.
(2) “Commercial fleet vehicle,” is not limited to a vehicle that is operated for hire, compensation, or profit, and is limited to a vehicle that is under contract or exclusive franchise to a state, regional, or local agency that is any of the following:
(A) Light- and medium-duty vehicles.
(B) Vehicles used to provide any of the following:
(i) Passenger bus transportation.
(ii) Solid waste collection.
(iii) Passenger transportation to and from commercial airports.
(iv) Schoolbuses.
(v) Sweeping services.
(C) Vehicles in a fleet that is carrying out functions that were previously provided by fleets that were owned by a state, regional, or local agency on January 1, 2018, and that is subsequently under contract or exclusive franchise after that date.
(3) “Medium-duty vehicle” means a vehicle with a gross vehicle weight rating of more than 6,000 pounds and less than 14,000 pounds.
(b) Notwithstanding any other provision of law, the south coast district board may adopt rules or regulations that do all of the following:

(a)

(1) Require operators of public and commercial fleet vehicles, consisting of 15 or more vehicles under a single owner or lessee and operating substantially in the south coast district, when adding vehicles to or replacing vehicles in an existing fleet or purchasing vehicles to form a new fleet, to purchase vehicles which are capable of operating on methanol or other equivalently clean burning alternative fuel and to require district to purchase the cleanest commercially available vehicles that will meet the operator’s operational needs and require the replacement of no more than 15 percent of existing vehicles per calendar year with due consideration given to a vehicle’s useful life. The south coast district may require that these vehicles be operated, to the maximum extent feasible, on the alternative fuel when operating in the south coast district. Notwithstanding Section 39021, as used in this subdivision, the term “commercial fleet vehicles” is not limited to vehicles that are operated for hire, compensation, or profit. No A rule or regulation adopted pursuant to this paragraph shall not apply to emergency vehicles operated by local law enforcement agencies, fire departments, agencies or fire departments or to paramedic and rescue vehicles until the south coast district board finds and determines that the alternative fuel is available at sufficient locations so that cleanest commercially available vehicles will not impair the emergency response capabilities of those vehicles is not impaired. vehicles.

(b)

(2) Encourage and facilitate ridesharing for commuter trips into, out of, and within the south coast district.

(c)

(3) Prohibit or restrict the operation of heavy-duty trucks during the hours of the heaviest commuter traffic on freeways and other high traffic volume high-traffic-volume highways. In adopting rules and regulations pursuant to this paragraph, the south coast district shall consult with the Department of Transportation and Transportation, the Department of the California Highway Patrol Patrol, and the transportation commission of each county in the south coast district. No A rule or regulation adopted pursuant to this paragraph shall, however, paragraph, however, shall not prohibit or restrict the operation of any heavy-duty truck engaged in the hauling of solid or hazardous waste or a toxic substance if that truck is required to be operated at certain times of the day pursuant to an ordinance adopted for the protection of public health or safety by a city or county or any heavy-duty truck required to be operated at certain times of the day pursuant Section 25633 of the Business and Professions Code.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs of the South Coast Air Basin, which is designated as federal extreme nonattainment for ozone.
SECTION 1.Section 6010.15 is added to the Revenue and Taxation Code, to read:
6010.15.

(a)“Sale” and “purchase” for the purposes of this part do not include the transfer of title to vested property by a pawnbroker to a person who pledged the property to the pawnbroker as security for a loan and from whom title to the property transferred to the pawnbroker pursuant to Section 21201 of the Financial Code, if all of the following requirements are met:

(1)The transfer occurs no more than six months after title to the property transferred to the pawnbroker from the person pursuant to Section 21201 of the Financial Code.

(2)As consideration for the transfer of the property, the person is required to pay the pawnbroker only the remaining unpaid balance of the loan, including accrued charges and interest, as of the date the pawnbroker becomes vested with title to the property, together with one of the following:

(A)For an original loan amount not exceeding two thousand four hundred ninety-nine dollars and ninety-nine cents ($2,499.99), charges and interest allowable under the loan pursuant to Chapter 2 (commencing with Section 21200) of Division 8 of the Financial Code, from the date the pawnbroker is vested with title to the property to the date of the transfer to the person who pledged the property.

(B)For an original loan amount of two thousand five hundred dollars ($2,500) or more, charges and interest due in accordance with the last monthly contractual interest rate, from the date the pawnbroker is vested with title to the property until the date of the transfer to the person who pledged the property.

(3)The person has proof, such as a receipt or similar document provided to the purchaser, that the person originally paid sales tax on the item.

(b)As used in this section:

(1)“Pawnbroker” has the meaning described in Section 21000 of the Financial Code.

(2)“Vested property” has the meaning described in subdivision (b) of Section 21002 of the Financial Code.

(c)This section shall become inoperative and shall be repealed on January 1, 2022.

SEC. 2.

Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse cities and counties for any sales and use tax revenues lost by them under this act.

SEC. 3.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.