Bill Text: CA SB1125 | 2011-2012 | Regular Session | Amended
Bill Title: Local government contracts: seller's permits and
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-24 - Held in committee and under submission. [SB1125 Detail]
Download: California-2011-SB1125-Amended.html
BILL NUMBER: SB 1125 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 17, 2012
AMENDED IN SENATE MARCH 21, 2012
INTRODUCED BY Senator Hancock
FEBRUARY 17, 2012
An act to add Chapter 3.3 (commencing with Section 22120) to Part
3 of Division 2 of the Public Contract Code, relating to public
contracts.
LEGISLATIVE COUNSEL'S DIGEST
SB 1125, as amended, Hancock. Local government contracts: seller's
permits and certificates of registration.
The Sales and Use Tax Law imposes 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.
Existing law, except under specified circumstances, prohibits the
state from contracting with a vendor, contractor, or affiliate of a
vendor or contractor that does not possess a seller's permit or a
certificate of registration.
This bill would, except under specified circumstances, prohibit a
local government entity, as defined, from contracting with a vendor,
contractor, or an affiliate of a vendor or contractor that does not
possess a seller's permit or a certificate of registration.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 3.3 (commencing with Section 22120) is added to
Part 3 of Division 2 of the Public Contract Code, to read:
CHAPTER 3.3. PERMIT OR CERTIFICATION REQUIREMENT FOR SELLER
CONTRACTS WITH LOCAL GOVERNMENT
22120. (a) A local government entity shall not contract for the
purchase of tangible personal property from a vendor, contractor, or
an affiliate of a vendor or contractor unless that vendor,
contractor, and all of its affiliates that make sales for delivery
into California are holders of a California seller's permit issued
pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of
Part 1 of Division 2 of the Revenue and Taxation Code, or are holders
of a certificate of registration issued pursuant to Section 6226 of
the Revenue and Taxation Code.
(b) Beginning on and after January 1, 2013, each vendor,
contractor, or affiliate of a vendor or contractor that is offered a
contract to do business with a local government entity shall submit
to that local government entity a copy, as applicable, of that
retailer's seller's permit or certificate of registration, and a copy
of each of the retailer's applicable affiliate's seller's permit or
certificate of registration, as described in subdivision (a). This
subdivision does not apply to a credit card purchase of goods of two
thousand five hundred dollars ($2,500) or less, not to exceed seven
thousand five hundred dollars ($7,500) per year for each company from
which a local government entity is purchasing goods by credit card.
Each local government entity shall monitor the use of this exemption
and adhere to these restrictions.
(c) A local government entity is exempted from the provisions of
subdivision (a) if the governing body of the local government entity,
or a person delegated authority by the governing body of the local
government entity, makes a written finding that the contract is
necessary to meet a compelling local government interest.
(1) In any given fiscal year, a local government entity may not
claim an exemption from the provisions of subdivision (a), pursuant
to this subdivision, for more than 5 percent of the total number of
contract purchases of tangible personal property from a vendor,
contractor, or an affiliate of a vendor or contractor.
(2) The written finding is a public record for purposes of the
California Public Records Act as specified in Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code.
(d) For the purposes of this section:
(1) "Affiliate of the vendor or contractor" means any person or
entity that is controlled by, or is under common control of, a vendor
or contractor through stock ownership or any other affiliation.
(2) "Compelling local government interest" includes, but is not
necessarily limited to, the following:
(A) Ensuring the provision of essential services.
(B) Ensuring the public health, safety, and welfare.
(C) Responding to an emergency, as defined in Section 1102.
(3) "Local government entity" means a city, county, city and
county, community college district, school district, or county
superintendent of schools located in California.
SEC. 2. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
