Bill Text: CA SB1125 | 2011-2012 | Regular Session | Amended

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

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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

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BILL NUMBER: SB 1125	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 21, 2012

INTRODUCED BY   Senator Hancock

                        FEBRUARY 17, 2012

   An act to add Chapter  3.5   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  3.5   3.3 
(commencing with Section 22120) is added to Part 3 of Division 2 of
the Public Contract Code, to read:
      CHAPTER  3.5.   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.
   (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  , or special district
 located in California.  For purposes of this
section, "special district" means a legally constituted governmental
entity established for the purpose of carrying on specific activities
with defined boundaries. 
  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.