Code Section Group

Business and Professions Code - BPC


  ( Division 5 added by Stats. 1939, Ch. 43. )

CHAPTER 14. Fuels and Lubricants [13400 - 13620]

  ( Heading of Chapter 14 amended by Stats. 2015, Ch. 591, Sec. 1. )

ARTICLE 4. Motor Oil Fee [13430 - 13434]
  ( Article 4 added by Stats. 1980, Ch. 636, Sec. 5. )


As used in this article, “motor oil dealer” means any person, firm, or corporation engaged in the business of producing, packaging, or otherwise preparing motor oil for market, or selling or distributing motor oil.

Notwithstanding any other provision of this division, and for the purpose of this article, “motor oil” means any product used to lubricate the moving parts of an internal combustion engine.

(Added by Stats. 1980, Ch. 636, Sec. 5.)


The following persons shall pay to the secretary a maximum fee of five cents ($0.05) for each gallon of motor oil sold or purchased on or after 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.

(Amended by Stats. 2009, Ch. 573, Sec. 1. (SB 260) Effective January 1, 2010.)


The fees provided in Section 13431 are maximum fees and may be established at a lower rate by the secretary at any time the funds derived from such assessment are more than reasonably necessary to cover the cost of administration and enforcement of this chapter, including the maintenance of a reasonable reserve fund for such purposes.

(Amended by Stats. 2017, Ch. 573, Sec. 69. (SB 800) Effective January 1, 2018.)


The secretary may, by regulation, prescribe the frequency of payments of such assessments, the procedures for such payment, the procedures for refunds of payment, and penalties for late payment.

(Amended by Stats. 2017, Ch. 573, Sec. 70. (SB 800) Effective January 1, 2018.)


The moneys which are received by the secretary pursuant to this chapter shall be deposited in the Department of Food and Agriculture Fund and shall be used only for the administration and enforcement of this chapter and Chapter 15 (commencing with Section 13700).

(Amended by Stats. 2017, Ch. 573, Sec. 71. (SB 800) Effective January 1, 2018.)

BPCBusiness and Professions Code - BPC4