Bill Text: CA SB1382 | 2021-2022 | Regular Session | Amended

California Senate Bill 1382 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Air pollution: Clean Cars 4 All Program: Sales and Use Tax Law: zero emissions vehicle exemption.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Passed) 2022-09-16 - Chaptered by Secretary of State. Chapter 375, Statutes of 2022. [SB1382 Detail]

Download: California-2021-SB1382-Amended.html

Amended IN Senate April 26, 2022

Amended IN Senate March 16, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1382

Introduced by Senators Gonzalez and Becker
(Coauthor: Senator Caballero)

February 18, 2022

An act to amend Sections 44124.5 and 44125.5 of the Health and Safety Code, and to add Section 6368.2 to the Revenue and Taxation Code, relating to air pollution.

LEGISLATIVE COUNSEL'S DIGEST

SB 1382, as amended, Gonzalez. Air pollution: Clean Cars 4 All Program: Sales and Use Tax Law: zero emissions vehicle exemption.

(1) Existing law establishes the Clean Cars 4 All Program, which is administered by the State Air Resources Board, to focus on achieving reductions in the emissions of greenhouse gases, improvements in air quality, and benefits to low-income state residents through the replacement of high-polluter motor vehicles with cleaner and more efficient motor vehicles or a mobility option. Existing law requires the implementing regulations to ensure, among other things, that there is improved coordination, integration, and partnerships with other specified programs that target disadvantaged communities.

Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. Existing law requires the state board to annually post on its internet website a performance analysis of the replacement and mobility options component of the programs that includes information regarding how incentive levels can be modified to maximize participation and emissions reductions.

This bill would require the implementing regulations for the Clean Cars 4 All Program to additionally ensure that the ~~State Air Resources Board~~ state board coordinates with air ~~resource~~ quality management districts and local nonprofit and community organizations to identify barriers to accessing the Clean Cars 4 All ~~program~~ Program and to develop outreach protocols and metrics to assess the success of outreach across the districts. The bill would additionally ~~require, for purposes of the enhanced fleet modernization program,~~ require that the performance analysis include an assessment identifying target groups that are underserved by the Clean Cars 4 All Program and assessing barriers to the Clean Cars 4 ~~All,~~ All Program, and an evaluation of outreach efforts to target groups that are currently underserved by the Clean Cars 4 ~~All.~~ All Program.

(2) Existing state 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. The Sales and Use Tax Law provides various exemptions from those taxes.

This bill, on or after January 1, 2023, would provide an exemption from those taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle, as defined, sold to a qualified buyer, as defined. The bill would provide that this exemption does not apply to specified state sales and use taxes from which the proceeds are deposited into the Local Revenue Fund, the Local Revenue Fund 2011, or the Local Public Safety Fund.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities 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.

This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes.

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

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

SECTION 1.

Section 44124.5 of the Health and Safety Code is amended to read:

44124.5.

(a) The Clean Cars 4 All Program is hereby established and is to be administered by the state board to focus on achieving reductions in the emissions of greenhouse gases, improvements in air quality, and benefits to low-income state residents through the replacement of high-polluter motor vehicles with cleaner and more efficient motor vehicles or a mobility option.

(b) Beginning in the 2018–19 fiscal year, and every fiscal year thereafter, the state board shall set specific, measurable goals for the replacement of passenger vehicles and light- and medium-duty trucks that are high polluters.

(c) The state board shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall include, but need not be limited to, updating the guidelines for Clean Cars 4 All no later than January 1, 2019.

(d) The regulation implementing this section shall ensure all of the following:

(1) Where applicable, there is improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.

(2) The state board shall coordinate with air quality management districts and local nonprofit and community organizations to identify barriers to accessing the Clean Cars 4 All program and to develop outreach protocols and metrics to assess the success of outreach across the air quality management districts.

(3) The replacement or a mobility option is consistent with paragraph (6) of subdivision (d) of Section 44125.

(4) Provisions enhance the prescreening of applicants to Clean Cars 4 All, if determined by the state board to be appropriate.

SEC. 2.

Section 44125.5 of the Health and Safety Code is amended to read:

44125.5.

Beginning no later than July 1, 2019, and every year thereafter, the state board, for both the program and Clean Cars 4 All, shall collect and post on its internet website all of the following:

(a) The performance of both programs relative to the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.

(b) An accounting that includes, but need not be limited to, moneys allocated to the program and Clean Cars 4 All and the expenditures of the program and Clean Cars 4 All by region.

(c) A performance analysis broken down by district of the replacement and mobility options component of the program and Clean Cars 4 All to identify areas to be emphasized when setting future goals or updating the guidelines for the program and Clean Cars 4 All. The analysis shall include all of the following:

(1) Whether a district implementing the replacement and mobility options component of the program or Clean Cars 4 All has a backlog or a waiting list for applicants and recommendations from the district or state board on how to eliminate the backlog or waiting list.

(2) An evaluation of the funding for targeted outreach in low-income or disadvantaged communities, including whether the funding should be enhanced or modified to reach the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.

(3) How incentive levels can be modified to maximize participation and emissions reductions.

(4) An assessment identifying target groups that are underserved by Clean Cars 4 All, and assessing barriers to Clean Cars 4 All, including language access barriers, geographic barriers, or information barriers.

(5) An evaluation of outreach efforts to target groups that are currently underserved by Clean Cars 4 All.

SEC. 3.

Section 6368.2 is added to the Revenue and Taxation Code, to read:

6368.2.

(a) On or after January 1, 2023, there are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle sold to a qualified buyer.

(b) For purposes of this section, all of the following definitions apply:

(1) “Qualified motor vehicle” means a plug-in hybrid or zero-emission vehicle ~~designated as an eligible vehicle~~ for which a grant letter is awarded to the qualified buyer under the Clean Cars 4 All Program established by Section 44124.5 of the Health and Safety Code.

(2) “Qualified buyer” means an individual ~~with~~ to whom an award letter or other approval documentation was issued by any entity implementing the Clean Cars 4 All Program ~~to the individual~~ indicating that their application was approved for a grant under the Clean Cars 4 All Program.

(c) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by this section does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.

(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15.

SEC. 4.

It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code for purposes of the exemption under Section 6368.2 of the Revenue and Taxation Code, as added by this act.