Bill Text: CA SB797 | 2023-2024 | Regular Session | Amended

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

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Bill Title: Lithium Extraction Tax Citizens Oversight Committee.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State. Chapter 506, Statutes of 2023. [SB797 Detail]

Download: California-2023-SB797-Amended.html

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Amended  IN  Senate  April 10, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 797

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Introduced by Senator Padilla
(Coauthor: Assembly Member Garcia)

February 17, 2023

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An act to amend Section 47002 of, and to add Chapter 4 (commencing with Section 47110) to Part 25 of Division 2 of, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

SB 797, as amended, Padilla. Lithium Extraction Tax Citizens Oversight Committee.

Existing law, the Lithium Extraction Tax Law, imposes a lithium extraction excise tax upon each metric ton of lithium carbonate equivalent extracted from geothermal fluid, spodumene ore, rock, minerals, clay, or any other naturally occurring substance in this state, as specified. Existing law requires the California Department of Tax and Fee Administration to administer and collect the tax and requires all collected revenues, less refunds and reimbursement to the department for administrative expenses, to be deposited into the Lithium Extraction Excise Tax Fund and disbursed in the manner prescribed.

This bill would establish the Lithium Extraction Tax Citizens Oversight Committee within the department for the purposes of ensuring that revenues from the lithium extraction excise tax are appropriately allocated and making recommendations on how to improve community engagement and maximize community benefits from the revenues. The bill would prescribe the composition of the committee and the appointment of committee members. The bill would also require the committee to report its findings and recommendations annually on December 1 to the Legislature, as specified. The bill would also make related legislative findings and declarations.

Digest Key

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

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Bill Text

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

SECTION 1.

 The Legislature finds and declares all of the following:

(a) In 2022, the Legislature passed and the Governor signed legislation that imposed a lithium extraction tax to help ensure that the economically depressed areas surrounding the Salton Sea realize tangible and sustained economic benefits from the nearby emerging lithium extraction industry.

(b) The revenues from that extraction tax are designed to remain in those historically underinvested communities in order to improve the overall health and welfare of their residents.

(c) The revenues from that extraction tax, after state administrative costs, are distributed in two ways. Eighty percent of those revenues are disbursed to the counties impacted by lithium extraction activities and 20 percent is set aside for Salton Sea restoration projects and grants for community engagement or community benefit projects at or around the Salton Sea.

SEC. 2.

 Section 47002 of the Revenue and Taxation Code is amended to read:

47002.

 For purposes of this part, the following definitions apply:

(a) “Department” means the California Department of Tax and Fee Administration.

(b) “Extraction” means the process of removing lithium from geothermal fluid, spodumene ore, rock, minerals, clay, or any other naturally occurring substance by a physical or chemical process.

(c) “Geothermal fluid” means naturally occurring groundwater, brines, vapor, and steam associated with, or derived from, a geothermal resource.

(d) “Geothermal resource” has the same meaning as defined in Section 6903 of the Public Resources Code.

(e) “In this state” means within the exterior limits of the State of California and includes all territory within these limits owned by, or ceded to, the United States.

(f) “Metric ton” means a unit of mass equal to 1,000 kilograms.

(g) “Minerals” has the same meaning as defined in Section 2005 of the Public Resources Code.

(h) “Producer” means any person who extracts lithium from geothermal fluid, spodumene ore, rock, minerals, clay, or any other naturally occurring substance in this state.

(i) “Committee” means the Lithium Extraction Tax Citizens Oversight Committee.

SEC. 3.

 Chapter 4 (commencing with Section 47110) is added to Part 25 of Division 2 of the Revenue and Taxation Code, to read:

CHAPTER  4. Citizens Oversight Committee

47110.

 (a) The Lithium Extraction Tax Citizens Oversight Committee is hereby established within the department for the purposes of ensuring that revenues from the lithium extraction excise tax are appropriately allocated pursuant to Section 47100 and making recommendations on how to improve community engagement and maximize community benefits from the revenues.

(b) The committee shall be composed of the following members:

(1) Three public members who reside in the local communities where the lithium extraction occurs, to be appointed by the Governor.

(2) Two public members who reside in the local communities where the lithium extraction occurs, to be appointed by the Senate Rules Committee. Of these two public members, one shall have environmental justice expertise and the other shall have economic development expertise.

(3) Two public members who reside in the local communities where the lithium extraction occurs, to be appointed by the Speaker of the Assembly. Of these two public members, one shall have environmental restoration expertise and the other shall have vocational training expertise.

(c) The members of the committee shall serve at the pleasure of the appointing power and shall be appointed for terms of two years.

(d) The members of the committee shall serve without compensation.

(e) Meetings of the committee shall be subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).

47115.

 The committee shall report annually on December 1 to the Legislature on how the revenues from the collection of the lithium extraction excise tax were allocated and any recommendations for improving the allocation of those revenues to enhance the health and welfare of the local communities where the lithium extraction occurs. The report shall be submitted in accordance with Section 9795 of the Government Code.