AB 2722: Motor Vehicle Fuel Tax Law: suspension of tax.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-03-24
Current Status:
In Progress
(2026-03-26: Re-referred to Com. on TRANS. pursuant to Assembly Rule 96.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon.
Existing unfair competition laws establish a statutory cause of action for unfair competition, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising and acts prohibited by false advertisement laws.
This bill would suspend the imposition of the tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end consumer, as defined, be passed on to the end consumer, and would make the violation of this requirement an unfair business practice, in violation of unfair competition laws, as provided. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction.
This bill would also direct the Controller to transfer a specified amount from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund. By transferring General Fund moneys to a continuously appropriated account, this bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law establishes the Office of Data and Innovation within the Government Operations Agency and sets forth its powers and duties, including delivering better government services to the people of California through technology and service innovation, data, and design.Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection. Existing law requires the secretary to develop and adopt information technology standards by which public agencies and the regulated community may use computers and other information technology to comply with environmental data reporting requirements, and to establish a standardized electronic format and protocol for the exchange of electronic data for the purpose of meeting the environmental data reporting requirements under specified laws.This bill would require the secretary, in consultation with the office, to determine the minimum permissible machine-readable formats for environmental data, as specified. Subject to availability of the necessary resources, the bill would authorize the office to create an interoperable statewide environmental data portal to maintain and preserve copies of environmental data in electronic, machine-readable format for access by the public.This bill would require a state agency that collects, maintains, or publishes environmental data to ensure, among other things, that the environmental data is published online in the machine-readable format determined by the secretary and accessible through a state agencys internet website or the interoperable statewide environmental data portal created by the office. The bill would authorize the secretary and the office to provide technical guidance, training, and template schemas to state agencies to support publication and interoperability.Existing law establishes the Office of Data and Innovation within the Government Operations Agency and sets forth its powers and duties, including delivering better government services to the people of California through technology and service innovation, data, and design.
Existing law establishes the California Environmental Protection Agency under the supervision of the Secretary for Environmental Protection. Existing law requires the secretary to develop and adopt information technology standards by which public agencies and the regulated community may use computers and other information technology to comply with environmental data reporting requirements, and to establish a standardized electronic format and protocol for the exchange of electronic data for the purpose of meeting the environmental data reporting requirements under specified laws.
This bill would require the secretary, in consultation with the office, to determine the minimum permissible machine-readable formats for environmental data, as specified. Subject to availability of the necessary resources, the bill would authorize the office to create an interoperable statewide environmental data portal to maintain and preserve copies of environmental data in electronic, machine-readable format for access by the public.
This bill would require a state agency that collects, maintains, or publishes environmental data to ensure, among other things, that the environmental data is published online in the machine-readable format determined by the secretary and accessible through a state agencys internet website or the interoperable statewide environmental data portal created by the office. The bill would authorize the secretary and the office to provide technical guidance, training, and template schemas to state agencies to support publication and interoperability.
Existing law prohibits an employer from discharging an employee by reason of the fact that the garnishment of the employees wages has been threatened or by reason of the fact that the employees wages have been subjected to garnishment for the payment of one judgment and provides for the continuation of the wages of an employee who is discharged in violation of that provision, as prescribed.This bill would make nonsubstantive changes to those provisions.Existing law prohibits an employer from discharging an employee by reason of the fact that the garnishment of the employees wages has been threatened or by reason of the fact that the employees wages have been subjected to garnishment for the payment of one judgment and provides for the continuation of the wages of an employee who is discharged in violation of that provision, as prescribed.
This bill would make nonsubstantive changes to those provisions.
(a)(1)A Except as provided in Section 7374, a tax of eighteen cents ($0.18) is hereby imposed upon each gallon of fuel subject to the tax in Sections 7362, 7363, and 7364.
(2)If the federal fuel tax is reduced below the rate of nine cents ($0.09) per gallon and federal financial allocations to this state for highway and exclusive public mass transit guideway purposes are reduced or eliminated correspondingly, the tax rate imposed by paragraph (1), on and after the date of the reduction, shall be recalculated by an amount so that the combined state rate under paragraph (1) and the federal tax rate per gallon equal twenty-seven cents ($0.27).
(3)If any person or entity is exempt or partially exempt from the federal fuel tax at the time of a reduction, the person or entity shall continue to be so exempt under this section.
(b)(1)On Except as provided in Section 7374, on and after July 1, 2010, in addition to the tax imposed by subdivision (a), a tax is hereby imposed upon each gallon of motor vehicle fuel, other than aviation gasoline, subject to the tax in Sections 7362, 7363, and 7364 in an amount equal to seventeen and three-tenths cents ($0.173) per gallon.
(2)For the 201112 fiscal year and each fiscal year thereafter, the board shall, on or before March 1 of the fiscal year immediately preceding the applicable fiscal year, adjust the rate in paragraph (1) in that manner as to generate an amount of revenue that will equal the amount of revenue loss attributable to the exemption provided by Section 6357.7, based on estimates made by the board, and that rate shall be effective during the states next fiscal year.
(3)In order to maintain revenue neutrality for each year, beginning with the rate adjustment on or before March 1, 2012, the adjustment under paragraph (2) shall also take into account the extent to which the actual amount of revenues derived pursuant to this subdivision and, as applicable, Section 7361.1, the revenue loss attributable to the exemption provided by Section 6357.7 resulted in a net revenue gain or loss for the fiscal year ending prior to the rate adjustment date on or before March 1.
(4)The intent of paragraphs (2) and (3) is to ensure that the act adding this subdivision and Section 6357.7 does not produce a net revenue gain in state taxes.
(5)Commencing July 1, 2019, the adjustments in paragraphs (2) and (3) shall cease, and the rate imposed by this subdivision shall be the rate in paragraph (1).
(c)On Except as provided in Section 7374, on and after November 1, 2017, in addition to the taxes imposed by subdivisions (a) and (b), a tax is hereby imposed upon each gallon of motor vehicle fuel, other than aviation gasoline, subject to the tax in Sections 7362, 7363, and 7364, in an amount equal to twelve cents ($0.12) per gallon.
(d)On July 1, 2020, and every July 1 thereafter, the board shall adjust the taxes imposed by subdivisions (a), (b), and (c), with the adjustment to apply to both to the base tax rates specified in those provisions and to any previous adjustment in rates made pursuant to this subdivision, by increasing the taxes by a percentage amount equal to the increase in the California Consumer Price Index, as calculated by the Department of Finance with the resulting taxes rounded to the nearest one-tenth of one cent ($0.01). The first adjustment pursuant to this subdivision shall be a percentage amount equal to the increase in the California Consumer Price Index from November 1, 2017, to November 1, 2019. Subsequent annual adjustments shall cover subsequent 12 month periods. The incremental change shall be added to the associated rate for that year.
(e)Any increases to the taxes imposed under subdivisions (a), (b), and (c) that are enacted by legislation subsequent to July 1, 2017, shall be deemed to be changes to the base tax rates for purposes of the California Consumer Price Index calculation and adjustment performed pursuant to subdivision (d).
SEC. 2.Section 7362 of the Revenue and Taxation Code is amended to read:7362.The Except as provided in Section 7374, the tax specified in Section 7360 is imposed on the removal of motor vehicle fuel in this state from a terminal if the motor vehicle fuel is removed at the rack.
SEC. 3.Section 7363 of the Revenue and Taxation Code is amended to read:7363.The Except as provided in Section 7374, the tax specified in Section 7360 is also imposed on all of the following:
(a)The removal of motor vehicle fuel in this state from any refinery if either of the following applies:
(1)The removal is by bulk transfer and the refiner or the owner of the motor vehicle fuel immediately before the removal is not a licensed supplier.
(2)The removal is at the refinery rack.
(b)The entry of motor vehicle fuel into this state for sale, consumption, use, or warehousing if either of the following applies:
(1)The entry is by bulk transfer and the enterer is not a licensed supplier.
(2)The entry is not by bulk transfer.
(c)The removal or sale of motor vehicle fuel in this state to an unlicensed person unless there was a prior taxable removal, entry, or sale of the motor vehicle fuel.
(d)The removal or sale of blended motor vehicle fuel in this state by the blender thereof. The number of gallons of blended motor vehicle fuel subject to tax is the difference between the total number of gallons of blended motor vehicle fuel removed or sold and the number of gallons of previously taxed motor vehicle fuel used to produce the blended motor vehicle fuel.
SEC. 4.Section 7364 of the Revenue and Taxation Code is amended to read:7364.The Except as provided in Section 7374, the tax specified in Section 7360 is imposed as a backup tax as follows:
(a)On the delivery into the fuel tank of a motor vehicle fuel-powered highway vehicle of:
(1)Any motor vehicle fuel on which a claim for refund has been allowed; or
(2)Any liquid on which tax has not been imposed by this part, Part 3 (commencing with Section 8601), or Part 31 (commencing with Section 60001).
(b)On the sale of any motor vehicle fuel on which a claim for refund has been allowed.
(c)On the sale and delivery into the fuel tank of a motor vehicle fuel-powered highway vehicle of any liquid on which tax has not been imposed by this part, Part 3 (commencing with Section 8601), or Part 31 (commencing with Section 60001).
SEC. 5.Section 7374 is added to the Revenue and Taxation Code, to read:7374.(a)The imposition of taxes under Sections 7360, 7362, 7363, and 7364 is suspended for the period beginning on the effective date of this section and ending on the date one year after the effective date of this section.
(b)(1)All savings realized on the purchase of motor vehicle fuel by any party other than an end consumer due to the suspension of taxes pursuant to this section shall be passed on to the end consumer.
(2)Any violation of this subdivision shall constitute an unfair business practice punishable pursuant to Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.
(3)Notwithstanding any other law, a prospective plaintiff shall provide written notice of an alleged violation of this subdivision at least 60 days prior to bringing any enforcement action in order to give the defendant opportunity to remedy any deficiency.
(4)If a party receiving a notice pursuant to paragraph (3) responds in writing within 60 days, and the response offers an explanation for the deficiency and expresses an intent to remedy the deficiency, the opportunity to remedy a deficiency prior to initiating an enforcement action shall be extended an additional 30 days.
(5)Any remediation of a deficiency during the waiting period described in this subdivision shall be an affirmative defense against an enforcement action.
(c)Upon any sale of motor vehicle fuels to which this section applies, the seller shall provide a receipt to the purchaser that clearly indicates the amount of motor vehicle fuel tax that would have applied to the sale if not for this section.
(d)For purposes of this section, end consumer means a purchaser of motor vehicle fuels for the purpose of consumption, and not for resale.
(e)(1)The Controller, no later than 60 days after the effective date of this section, shall transfer an amount equal to the amount collected pursuant to Sections 7360, 7362, 7363, and 7364 in the 202324 fiscal year, adjusted for inflation, from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund. This transfer amount is continuously appropriated in accordance with Section 8352.
(2)The Controller, no later than 60 days after the conclusion of the one-year period in subdivision (a), shall calculate the actual revenues from the imposition of taxes under Sections 7360, 7362, 7363, and 7364 that would have been collected in the absence of the suspension in subdivision (a). If this amount is greater than the amount calculated in paragraph (1), the Controller shall transfer the difference from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund. This transferred amount is continuously appropriated in accordance with Section 8352.
SEC. 6.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to immediately lower gas prices and provide relief to California motorists, it is necessary for this act to take immediate effect.
SECTION 1.The Legislature finds and declares all of the following:(a)State agencies collect, maintain, and publish environmental data related to air quality, water quality, wildlife conservation, habitat protection, greenhouse gas emissions, natural resource permits, compliance, enforcement actions, climate vulnerability assessments, and related environmental planning.(b)Currently, this data is often not consistently published in machine-readable formats, hindering public access, analytical interoperability, and cross-agency transparency.(c)Improving public access to environmental data will enhance policymaking, regulatory compliance, scholarly research, and community engagement without imposing substantive new regulatory requirements.(d)This act builds upon the policy goals of machine-readable government transparency established in Senate Bill 978 (Chapter 451 of the Statutes of 2024) by expanding machine-readable standards to environmental data across state agencies.SEC. 2.Chapter 3.6 (commencing with Section 71075) is added to Part 2 of Division 34 of the Public Resources Code, to read:3.6.Environmental Data Reporting Format71075.For purposes of this chapter, environmental data includes, but is not limited to, any of the following:(a)Air quality indices, emissions inventories, and monitoring station results.(b)Water quality sampling results, watershed health indicators, and compliance reports.(c)Waste characterization studies and recycling and diversion studies.(d)State-maintained chemical lists pursuant to Proposition 65, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986.(e)Greenhouse gas emissions reporting, climate vulnerability assessments, and adaptation plans.(f)Enforcement actions, notices to comply, and settlement agreements related to environmental statutes.71076.(a)Each state agency that collects, maintains, or publishes environmental data shall ensure that the environmental data meets all of the following requirements:(1)The environmental data is published online in a machine-readable format as determined by the secretary pursuant to subdivision (b).(2)The environmental data is accessible through one of the following:(A)A state agencys internet website.(B)An interoperable statewide environmental data portal created by the Office of Data and Innovation pursuant to Section 71077.(3)The environmental data is updated at least quarterly.(b)(1)The secretary, in consultation with the Office of Data and Innovation, shall determine the minimum permissible machine-readable formats for environmental data consistent with best practices for open data, including, standardized schemas, application programming interfaces, and metadata specifications.(2)The secretary shall review the minimum permissible machine-readable formats at least every two years.(c)This section does not require the creation of new environmental programs, regulatory enforcement obligations, or substantive data collection duties beyond existing statutory mandates.71077.(a)Subject to availability of the necessary resources, the Office of Data and Innovation may create an interoperable statewide environmental data portal to maintain and preserve copies of environmental data in electronic, machine-readable format for access by the public.(b)The secretary and the Office of Data and Innovation may provide technical guidance, training, and template schemas to state agencies to support publication and interoperability.The Legislature finds and declares all of the following:
(a)State agencies collect, maintain, and publish environmental data related to air quality, water quality, wildlife conservation, habitat protection, greenhouse gas emissions, natural resource permits, compliance, enforcement actions, climate vulnerability assessments, and related environmental planning.
(b)Currently, this data is often not consistently published in machine-readable formats, hindering public access, analytical interoperability, and cross-agency transparency.
(c)Improving public access to environmental data will enhance policymaking, regulatory compliance, scholarly research, and community engagement without imposing substantive new regulatory requirements.
(d)This act builds upon the policy goals of machine-readable government transparency established in Senate Bill 978 (Chapter 451 of the Statutes of 2024) by expanding machine-readable standards to environmental data across state agencies.
SEC. 2.Chapter 3.6 (commencing with Section 71075) is added to Part 2 of Division 34 of the Public Resources Code, to read:3.6.Environmental Data Reporting Format71075.For purposes of this chapter, environmental data includes, but is not limited to, any of the following:
(a)Air quality indices, emissions inventories, and monitoring station results.
(b)Water quality sampling results, watershed health indicators, and compliance reports.
(c)Waste characterization studies and recycling and diversion studies.
(d)State-maintained chemical lists pursuant to Proposition 65, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986.
(e)Greenhouse gas emissions reporting, climate vulnerability assessments, and adaptation plans.
(f)Enforcement actions, notices to comply, and settlement agreements related to environmental statutes.
71076.(a)Each state agency that collects, maintains, or publishes environmental data shall ensure that the environmental data meets all of the following requirements:
(1)The environmental data is published online in a machine-readable format as determined by the secretary pursuant to subdivision (b).
(2)The environmental data is accessible through one of the following:
(A)A state agencys internet website.
(B)An interoperable statewide environmental data portal created by the Office of Data and Innovation pursuant to Section 71077.
(3)The environmental data is updated at least quarterly.
(b)(1)The secretary, in consultation with the Office of Data and Innovation, shall determine the minimum permissible machine-readable formats for environmental data consistent with best practices for open data, including, standardized schemas, application programming interfaces, and metadata specifications.
(2)The secretary shall review the minimum permissible machine-readable formats at least every two years.
(c)This section does not require the creation of new environmental programs, regulatory enforcement obligations, or substantive data collection duties beyond existing statutory mandates.
71077.(a)Subject to availability of the necessary resources, the Office of Data and Innovation may create an interoperable statewide environmental data portal to maintain and preserve copies of environmental data in electronic, machine-readable format for access by the public.
(b)The secretary and the Office of Data and Innovation may provide technical guidance, training, and template schemas to state agencies to support publication and interoperability.
SECTION 1.Section 2929 of the Labor Code is amended to read:2929.(a)As used in this section:(1)Garnishment means any judicial procedure through which the wages of an employee are required to be withheld for the payment of any debt.(2)Wages has the same meaning as that term has under Section 200.(b)An employer shall not discharge an employee by reason of the fact that the garnishment of the employees wages has been threatened. An employer shall not discharge any employee by reason of the fact that the employees wages have been subjected to garnishment for the payment of one judgment. A provision of a contract of employment that provides an employee with less protection than is provided by this subdivision is against public policy and void.(c)Unless the employee has greater rights under the contract of employment, the wages of an employee who is discharged in violation of this section shall continue until reinstatement notwithstanding that discharge, but those wages shall not continue for more than 30 days and shall not exceed the amount of wages earned during the 30 calendar days immediately preceding the date of the levy of execution upon the employees wages that resulted in the employees discharge. The employee shall give notice to the employees employer of the employees intention to make a wage claim under this subdivision within 30 days after being discharged; and, if the employee desires to have the Labor Commissioner take an assignment of the employees wage claim, the employee shall file a wage claim with the Labor Commissioner within 60 days after being discharged. The Labor Commissioner may take assignment of wage claims under this subdivision as provided for in Section 96. A discharged employee shall not be permitted to recover wages under this subdivision if a criminal prosecution based on the same discharge has been commenced for violation of Section 304 of the Consumer Credit Protection Act of 1968 (15 U.S.C. Sec. 1674).(d)Nothing in this section affects any other rights the employee may have against the employees employer.(e)This section is intended to aid in the enforcement of the prohibition against discharge for garnishment of earnings provided in the Consumer Credit Protection Act of 1968 (15 U.S.C. Secs. 16711677) and shall be interpreted and applied in a manner which is consistent with the corresponding provisions of that act.(a)As used in this section:
(1)Garnishment means any judicial procedure through which the wages of an employee are required to be withheld for the payment of any debt.
(2)Wages has the same meaning as that term has under Section 200.
(b)No An employer may shall not discharge any an employee by reason of the fact that the garnishment of his the employees wages has been threatened. No An employer may shall not discharge any employee by reason of the fact that his the employees wages have been subjected to garnishment for the payment of one judgment. A provision of a contract of employment that provides an employee with less protection than is provided by this subdivision is against public policy and void.
(c)Unless the employee has greater rights under the contract of employment, the wages of an employee who is discharged in violation of this section shall continue until reinstatement notwithstanding such that discharge, but such those wages shall not continue for more than 30 days and shall not exceed the amount of wages earned during the 30 calendar days immediately preceding the date of the levy of execution upon the employees wages which that resulted in his the employees discharge. The employee shall give notice to his the employees employer of his the employees intention to make a wage claim under this subdivision within 30 days after being discharged; and, if he the employee desires to have the Labor Commissioner take an assignment of his the employees wage claim, the employee shall file a wage claim with the Labor Commissioner within 60 days after being discharged. The Labor Commissioner may, in his discretion, may take assignment of wage claims under this subdivision as provided for in Section 96. A discharged employee shall not be permitted to recover wages under this subdivision if a criminal prosecution based on the same discharge has been commenced for violation of Section 304 of the Consumer Credit Protection Act of 1968 (15 U.S.C. Sec. 1674).
(d)Nothing in this section affects any other rights the employee may have against his the employees employer.
(e)This section is intended to aid in the enforcement of the prohibition against discharge for garnishment of earnings provided in the Consumer Credit Protection Act of 1968 (15 U.S.C. Secs. 16711677) and shall be interpreted and applied in a manner which is consistent with the corresponding provisions of such that act.
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Date
|
Status
|
|---|---|
| Mar 26, 2026 | Re-referred to Com. on TRANS. pursuant to Assembly Rule 96. |
| Mar 25, 2026 | Re-referred to Com. on NAT. RES. |
| Mar 24, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Mar 23, 2026 | Re-referred to Com. on NAT. RES. |
| Mar 19, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Mar 19, 2026 | Referred to Com. on NAT. RES. |
| Feb 21, 2026 | From printer. May be heard in committee March 23. |
| Feb 20, 2026 | Read first time. To print. |
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Positions by individuals are not included.
