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 certain revenues from the lithium extraction excise tax are appropriately distributed or allocated, as specified, 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, the appointment of committee members, meeting provisions, and specified department duties related to the committee. The bill would also require the committee to report its findings and recommendations on April 1, 2027, and annually thereafter, to the Legislature, as specified. The bill would also make related legislative findings and declarations.