Hearing held for new oil tax bill

January 11, 2010 6:08:47 PM PST
The State Assembly held its first hearing on a Bay Area lawmaker's bill for a new oil tax.

Fremont Democrat Alberto Torrico wants to impose a 12.5 percent extraction tax on California oil producers, with the money going to higher education.

He says the bill would net more than a billion dollars a year.

One oil producer bussed hundreds of workers to the capitol today to rally against the bill. The companies claim the bill would cost jobs. Torricio denies that.

Previous attempts to impose an extraction fee in California have been rejected.