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CAIB Selected Bills of Interest

Selected Assembly and Senate Bills

2017-2018 Legislative Session – Updated April 20, 2017

 

 
  AB 5 (Gonzalez Fletcher D)   Employers: Opportunity to Work Act.
  Summary: Would create the Opportunity to Work Act. The bill would require an employer with 10 or more employees to offer additional hours of work to an existing nonexempt employee before hiring an additional employee or subcontractor, except as specified, would require an employer to post a notice of employee rights, as specified, and would require the employer to maintain certain documentation. The bill would authorize an employee to file a complaint for violation of these provisions with the division and to, in the alternative, bring a civil action for remedies under the act.
     
 
  AB 12 (Cooley D)   State government: administrative regulations: review.
  Summary: Would require each state agency to, on or before January 1, 2020, review that agency’s regulations, identify any regulations that are duplicative, overlapping, inconsistent, or out of date, to revise those identified regulations, as provided, and report to the Legislature and Governor, as specified. The bill would repeal these provisions on January 1, 2021.
     
 
  AB 53 (Steinorth R)   Personal income taxes: deduction: homeownership savings accounts.
  Summary: Would, on and after January 1, 2017, allow a deduction, not to exceed specified amounts, of the amount a qualified taxpayer, as defined, contributed in any taxable year to a homeownership savings account and would exclude from gross income any income earned on the moneys contributed to a homeownership savings account. The bill would provide that a qualified taxpayer may withdraw amounts from a homeownership savings account to pay for qualified homeownership savings expenses, defined as expenses paid or incurred in connection with the purchase of a principal residence in this state.
     
 
  AB 61 (Holden D)   State Compensation Insurance Fund: board.
  Summary: Current law establishes the State Compensation Insurance Fund to be administered by a board of directors for the purpose of transacting workers’ compensation insurance and other public employment-related insurances, as specified. This bill would require one of the board members that the Governor appoints to be a current or former small business owner who is or has been a small business owner for more than 5 years. The bill would require the exemption from specified qualifications that currently applies to the labor member to also apply to the small business owner member.
     
 
  AB 75 (Steinorth R)   Personal income taxes: earned income credit.
  Summary: Would, for taxable years beginning on and after January 1, 2017, expand the earned income credit allowed by the Personal Income Tax Law by providing additional conformity with federal income tax law to include specified net earnings from self-employment in earned income, thus allowing an earned income credit for taxpayers for those earnings. This bill would additionally set the earned income tax credit adjustment factor as 85%.
     
 
  AB 77 (Fong R)   Regulations: effective dates and legislative review.
  Summary: Would require the Office of Administrative Law to submit to each house of the Legislature for review a copy of each major regulation that it submits to the Secretary of State. The bill would add another exception to those currently provided that specifies that a regulation does not become effective if the Legislature enacts a statute to override the regulation.
     
 
  AB 86 (Calderon D)   Entrepreneur-in-Residence Act of 2017.
  Summary: Would enact the Entrepreneur-in-Residence Act of 2017, which would establish the state entrepreneur-in-residence program within the Government Operations Agency for the purpose of utilizing the expertise of private sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible. The program would authorize the Secretary of Government Operations to appoint a maximum of 10 persons each year to serve within a state agency as an entrepreneur-in-residence, with duties as established in the bill, on a voluntary basis.
     
 
  AB 150 (Mathis R)   Disabled persons: rights: liability.
  Summary: Would establish notice requirements for a plaintiff to follow before bringing an action against a small business, as defined, for an alleged violation of the Americans with Disabilities Act of 1990 (ADA). The bill would require the plaintiff to provide notice to a business at least 6 months before filing the complaint. The bill would also preclude commencement of an action against a small business for an alleged ADA violation if the small business has made a good faith effort to correct the alleged violation.
     
 
  AB 162 (Cervantes D)   Income taxation: credits.
  Summary: Current law allows a credit against the taxes imposed under the Corporation Tax Law and the Personal Income Tax Law for each taxable year beginning on or after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor’s Office of Business and Economic Development and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. This bill wouldfor allocations for the 2018–19 fiscal year and each fiscal year thereafter, define “small business” as having 50 or fewer full-time equivalent employees, on average, in the current and 2 preceding tax years.
     
 
  AB 221 (Gray D)   Workers’ compensation: liability for payment.
  Summary: Current law requires an employer to provide all medical services reasonably required to cure or relieve the injured worker from the effects of the injury. This bill would provide that for claims of occupational disease or cumulative injury filed on or after January 1, 2018, the employee and the employer would have no liability for payment for medical treatment unless one or more of certain conditions are satisfied, including, among others, that the treatment was authorized by the employer.
     
 
  AB 225 (Caballero D)   Personal income taxes: earned income credit: earned income amount.
  Summary: The Personal Income Tax Law, for taxable years beginning on or after January 1, 2015, in modified conformity with federal income tax laws, allows an earned income credit against personal income tax, and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability, to an eligible individual in an amount determined in accordance with federal law as applicable for federal income tax purposes for the taxable year, multiplied by the earned income tax credit adjustment factor, as specified.This bill, for specified taxable years beginning on and after January 1, 2017, would increase the earned income threshold for which the phaseout begins, thereby increasing the amount of eligible taxpayers and the credit percentage for those eligible individuals for those taxable years beginning on and after January 1, 2017. The bill would suspend this increase under specified circumstances.
     
 
  AB 241 (Dababneh D)   Personal information: privacy: state and local agency breach.
  Summary: Current law requires a person or business, if it was the source of a data security breach, to offer to provide appropriate identity theft prevention and mitigation services at no cost to the person whose information was or may have been breached if the breach exposed or may have exposed the person’s social security number, driver’s license number, or California identification card number. This bill also would require a state or local agency, if it was the source of the breach, to offer to provide appropriate identity theft prevention and mitigation services at no cost to a person whose information was or may have been breached if the breach exposed or may have exposed the person’s social security number, driver’s license number, or California identification card number.
     
 
  AB 319 (Stone, Mark D)   Recycling: single-use plastic beverage container caps.
  Summary: The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, requires every rigid plastic packaging container, as defined, sold or offered for sale in this state, to generally meet one of specified criteria.This bill would prohibit a retailer, on and after January 1, 2020, from selling or offering for sale a single-use plastic beverage container with a cap that is not tethered to or contiguously affixed to the beverage container. The bill would define terms for purposes of these provisions.
     
 
  AB 442 (Frazier D)   Employer liability: small business and microbusiness.
  Summary: Would prohibit the Division of Occupational Safety and Health from commencing any enforcement action for any nonserious violation, as defined, against any employer where the employer is a small business or microbusiness, as defined, without first giving the employer written notice and providing the employer 30 days to correct the violation. The bill would authorize the division to assess a reasonable fee to cover its costs not to exceed $50.
     
 
  AB 600 (Cooper D)   Sales and use taxes: exemption: manufacturing and research: useful life: electric power generation.
  Summary: Current sales and use tax laws partially exempt from those taxes, for a specified period, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development. Consumables with a useful life of less than one year do not qualify for exemption, and useful life is defined by reference to state income or franchise taxes. This bill would additionally define useful life by reference to manufacturer or other warranties, maintenance contracts, and normal replacement as established by industry or business practices and would provide that those definitions would apply on and after July 1, 2014.
     
 
  AB 632 (Acosta R)   Small Business Procurement and Contract Act: small business and disabled veteran business enterprises.
  Summary: The Small Business Procurement and Contract Act also authorizes a state agency to award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than $5,000, but less than $250,000, to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, as long as the agency obtains price quotations from 2 or more certified small business, including a microbusiness, or from a disabled veteran business enterprise, without complying with specified competitive bidding requirements. Current law requires a bidder under these provisions to submit a written declaration under penalty of perjury.This bill would increase the value of the contract to greater than $5,000, but less than $500,000, for disabled veteran business enterprises under these provisions.
     
 
  AB 656 (Kiley R)   Income taxes: credits: unemployment insurance tax.
  Summary: Current federal law, the Federal Unemployment Tax Act, provides a credit against this income tax for contributions made to certified state unemployment compensation programs, but reduces this credit when a state has a debt to the Federal Unemployment Trust Account, thus requiring employers to pay more federal unemployment tax. California has a debt to the Federal Unemployment Trust Account. This bill, under both laws, for taxable years beginning on or after January 1, 2017, would allow a credit to employers in an amount equal to the reduction in credit under the Federal Unemployment Tax Act due to the state borrowing from the Federal Unemployment Trust Account.
     
 
  AB 657 (Cunningham R)   State government: small business liaisons.
  Summary: Would require a state agency that significantly regulates small business or that significantly impacts small business to prominently display the name and contact information of the small business liaison on the agency’s Web site, if the agency has a Web site.
     
 
  AB 767 (Quirk-Silva D)   Master Business License Act.
  Summary: Would create within the Governor’s Office of Business and Economic Development, or its successor, a business license center to develop and administer a computerized master business license system to simplify the process of engaging in business in this state. The bill would set forth the duties and responsibilities of the business license center. The bill would require each state agency to cooperate and provide reasonable assistance to the office to implement these provisions.
     
 
  AB 782 (Acosta R)   California Health Insurance Fairness Act: personal income tax: deduction: medical insurance.
  Summary: Would, for taxable years beginning on or after January 1, 2017, allow a deduction from gross income under the Personal Income Tax Law for the amounts paid or incurred by a taxpayer during the taxable year for medical insurance for medical care, as defined, and for transportation for and essential to that medical care, as provided. The bill would not allow as an itemized deduction, the amount allowed as a deduction from gross income as provided.
     
 
  AB 814 (Bloom D)   Consumer protection: enforcement powers: investigatory subpoena.
  Summary: Current law authorizes a district attorney, upon reasonable belief there has been a violation of the Unfair Competition (UCL) or various other laws related to unfair business practices, to exercise all the powers granted to the Attorney General as a head of department to investigate the potential violation, including the authority to issue subpoenas. This bill would specify that this investigatory power granted to the Attorney General as a head of a department applies to a city attorney of a city having a population in excess of 750,000 or to a city attorney of a city and county when those city attorneys reasonably believe that there may have been a violation of the UCL.
     
 
  AB 831 (Patterson R)   Personal income and corporation taxes: credits: compliance.
  Summary: The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2017, for qualified small businesses, as defined, for costs paid or incurred during the taxable year with regard to compliance with state laws and regulations in an amount equal to $25 for each person-hour spent on compliance with state regulations and laws, or $5,000, as provided. This bill contains other related provisions.
     
 
  AB 890 (Medina D)   Local land use initiatives: environmental review.
  Summary: Would require a proponent of a proposed initiative ordinance, at the time he or she files a copy of the proposed initiative ordinance for preparation of a ballot title and summary with the appropriate elections official, to also request that an environmental review of the proposed initiative ordinance be conducted by the appropriate planning department, as specified. The bill would require the elections official to notify the proponent of the result of the environmental review.
     
 
  AB 912 (Obernolte R)   Small business: California Small Business Regulatory Fairness Act.
  Summary: Would require a state agency to assist a small business, as defined, in complying with all statutes and regulations administered by the state agency and in any enforcement action by the state agency. The bill would require a state agency to establish a policy, by December 31, 2018, that provides for the reduction of civil penalties for violations of regulatory or statutory requirements by a small business under appropriate circumstances. The bill would authorize the state agency to update the policy to reflect current issues and conditions affecting small businesses and the state agency.
     
 
  AB 978 (Limón D)   Employment safety: injury and illness prevention program.
  Summary: Would require an employer who receives a written request for a paper or electronic copy of the written injury prevention program from a current employee, or his or her authorized representative, to comply with the request as soon as practicable, but no later than 5 business days from the date the employer receives the request. The bill would require the employer to provide the copy of the written injury prevention program free of charge. This bill contains other related provisions and other existing laws.
     
 
  AB 1085 (Calderon D)   Business entities: annual tax: minimum franchise tax: fees.
  Summary: Current law requires corporations subject to the minimum franchise tax to pay annually to the state a minimum franchise tax of $800 and provides that the estimated tax shall not be less than the minimum tax. If the amount of estimated tax does not exceed the minimum franchise tax, existing law requires the entire amount of the estimated tax to be due and payable on or before the 15th day of the 4th month of the taxable year. This bill would also authorize that annual tax and minimum franchise tax to be due and payable in 2 or 3 equal installments, on or before specified dates.
     
 
  AB 1173 (Harper R)   Employment: work hours: holiday season: overtime.
  Summary: Would establish an overtime exemption for an employee-selected holiday season flexible work schedule. The exemption would allow during the holiday season, as defined, at the request of an individual nonexempt employee working in the retail industry, and upon employer approval, an employee-selected flexible work schedule providing for workdays up to 10 hours per day within a 40-hour workweek. The employer would be obligated to pay overtime based on the employee’s regular rate of pay, as prescribed, for all hours worked over 40 hours in a workweek or over 10 hours in a workday, whichever is greater.
     
 
  AB 1216 (Choi R)   Income taxes: credit: employment.
  Summary: The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for each taxable year beginning on and after January 1, 2018, and before January 1, 2025, would allow a credit against the taxes imposed under both laws to a qualified taxpayer, as defined to mean a taxpayer that increases its workforce by 20 annual, full-time equivalent qualified employees, as compared to the taxpayer’s base year, in an amount equal to 17.5% of qualified wages paid or incurred during the taxable year to a qualified employee, not to exceed $25,000,000 per qualified taxpayer per taxable year.
     
 
  AB 1256 (Brough R)   Minimum franchise tax: annual tax: small business.
  Summary: Would, for taxable years beginning on or after January 1, 2018, reduce that minimum franchise tax in the 2nd taxable year for a new corporation, and that annual tax in the first taxable year for a new limited partnership, new limited liability partnership, and new limited liability company that is a small business, which is defined as a business entity with gross receipts of $5,000 or less, as specified.
     
 
  AB 1346 (Ridley-Thomas D)   Income taxes: credits: supplier diversity goals.
  Summary: The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. Current law requires any bill authorizing a new income tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements, as provided. This bill would require a taxpayer allowed a credit, which is enacted and becomes effective on or after January 1, 2018, against those taxes to meet supplier diversity goals by procuring supplies from business entities with certifications from certain entities, prior to claiming the credit in the first, 3rd, and 5th taxable years.
     
 
  AB 1347 (Ridley-Thomas D)   Income taxes: credits: supplier diversity goals.
  Summary: The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. Current law requires any bill authorizing a new income tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements, as provided. This bill would require a taxpayer allowed a credit, which is enacted and becomes effective on or after January 1, 2018, against those taxes to meet supplier diversity goals by procuring supplies from business entities with certifications from certain entities, prior to claiming the credit in the first, 3rd, and 5th taxable years.
     
 
  AB 1635 (Quirk-Silva D)   Public contracts: small business participation.
  Summary: Would require a state agency, as defined, to establish and achieve an annual goal that at least 25% of the procurement activities administered by that agency include a small business participant, to ensure that the agency’s procurement practices are administered in a manner that supports the agency in meeting or exceeding the goal, and to report to the director statistics regarding small business participation in the agency’s procurement activities. The bill would require the Department of General Services to monitor the progress of the agencies toward meeting the goal and to provide this information to the Office of Small Business Advocate.
     
 
  SB 33 (Dodd D)   Contracts for goods or services: waiver: fraud, identity theft, and wrongful use of personal identifying information.
  Summary: Would require that, in any contract between a person and a financial institution, a waiver of a legal right related to a claim of fraud arising out of the wrongful use of personal identifying information or identity theft committed by a party to a contract or its agents or employees be knowing and voluntary, express and in writing, and not a condition of entering into the contract or a condition of providing or receiving goods or services. The bill would assign any person seeking the enforcement of a waiver of these protections the burden of proving that the waiver was knowing and voluntary and not made as a condition of the contract or of providing or receiving goods or services.
     
 
  SB 63 (Jackson D)   Unlawful employment practice: parental leave.
  Summary: Would prohibit an employer, as defined, from refusing to allow an employee with more than 12 months of service with the employer, who has at least 1,250 hours of service with the employer during the previous 12-month period, to take up to 12 weeks of parental leave to bond with a new child within one year of the child’s birth, adoption, or foster care placement. The bill would also prohibit an employer from refusing to maintain and pay for coverage under a group health plan for an employee who takes this leave. This bill would also prohibit an employer from refusing to hire, or from discharging, fining, suspending, expelling, or discriminating against, an individual for exercising the right to parental leave.
     
 
  SB 182 (Bradford D)   Transportation network company: participating drivers: single business license.
  Summary: Would prohibit any local jurisdiction, as defined, that requires a driver, as defined, to obtain a business license to operate as a driver for a transportation network company, from requiring that driver to obtain more than a single business license, as specified, regardless of the number of local jurisdictions in which the driver operates. The bill would authorize that driver to select the local jurisdiction of issuance of the required business license, if applicable. The bill would require each transportation network company to notify its drivers of the obligations set forth in these provisions. The bill would require that personal information submitted to a local jurisdiction for purposes of complying with or enforcing these licensing provisions not be disclosed publicly, including on a publicly accessible Internet Web site.
     
 
  SB 189 (Bradford D)   Workers’ compensation: definition of employee.
  Summary: Current law defines an employee, for purposes of the laws governing workers’ compensation, to include, among other persons, officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay. Current law excludes from that definition an officer or member of the board of directors of a quasi-public or private corporation who owns at least 15% of the issued and outstanding stock and executes a written waiver of his or her rights under the laws governing workers’ compensation, stating under penalty of perjury that he or she is a qualifying officer or director. This bill would expand the scope of the exception described above to apply to an officer or member of the board of directors of a quasi-public or private corporation who owns at least 10% of the issued and outstanding stock and executes a written waiver, as above.
     
 
  SB 244 (Lara D)   Privacy: agencies: personal information.
  Summary: Would require that personal information, as defined, and records containing personal information that are collected or obtained by the state, any state agency, or any subdivision of the state, including agents of the California State University and the California Community Colleges, as well as any private persons contracted to administer public services or programs or maintain data for state or local agencies, from an applicant for public services or programs be collected, recorded, or used only for the purpose of assessing eligibility for and providing those public services and programs for which the application has been submitted.
     
 
  SB 246 (Bates R)   Property tax: base year value transfers.
  Summary: The California Constitution authorizes the Legislature to provide that a person who is either severely disabled or over 55 years of age may transfer the base year value, as defined, of property that is eligible for the homeowners’ property tax exemption to a replacement dwelling that is of equal or lesser value located within the same county as the property from which the base year value is transferred, provided the replacement dwelling is purchased or newly constructed within 2 years of the sale of the original property, subject to certain conditions. This bill would additionally provide that the limitation does not apply to any person who turned 55 years of age subsequent to being granted, as a claimant, the property tax relief provided by this section for any person who is severely and permanently disabled.
     
 
  SB 247 (Moorlach R)   Professions and vocations: license requirement: business: surety bond requirement.
  Summary: Current law, the Speech-Language Pathologists and Audiologists and Hearing Aid Dispensers Licensure Act, makes it unlawful for an individual to engage in the practice of fitting or selling hearing aids, or to display a sign or in any other way to advertise or hold himself or herself out as being so engaged without having first obtained a license from the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board.This bill would repeal this license requirement.
     
 
  SB 248 (Morrell R)   Minimum annual tax: exemptions.
  Summary: Current law, generally, imposes a minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state, and a minimum annual tax on every limited partnership, limited liability partnership, and limited liability company registered, qualified to transact business, or doing business in this state, as specified. This bill would, for the first 6 taxable years of a corporation, limited partnership, limited liability partnership, and limited liability company that is a small business, as defined, and that first commences business operations on or after January 1, 2018, and before January 1, 2024, reduce that minimum tax, as provided.
     
 
  SB 288 (Hernandez D)   Health coverage: small employers.
  Summary: Current law requires the California Health Benefit Exchange Board to establish the Small Business Health Options Program, otherwise referred to as the SHOP program, separate from the activities of the board related to the individual market, to assist qualified small employers in facilitating the enrollment of their employees in qualified health plans offered through the Exchange in the small employer market in a manner consistent with a specified provision of the federal act. This bill would change the name of the SHOP program to Covered California for Small Business and make related conforming changes.
     
 
  SB 306 (Hertzberg D)   Retaliation actions: complaints: administrative review.
  Summary: Current law requires a discrimination complaint investigator to investigate, and submit a report on, each complaint to the Labor Commissioner; authorizes the commissioner to designate specified officers to review the report; and authorizes the commissioner to hold an investigative hearing on the report if, after reviewing the report, the commissioner determines that a hearing is necessary. This bill would authorize the commissioner, upon finding reasonable cause to believe that any person has engaged in or is engaging in a violation, to petition a superior court for prescribed injunctive relief.
     
 
  SB 507 (Hueso D)   Income taxes: credits: hiring.
  Summary: Current law limits the aggregate amount, through the 2017–18 fiscal year, of credits allocated to taxpayers to a specified sum per fiscal year and provides that the amount available for these credits will decrease based in part, on how much credit is allowed under the hiring credit. This bill would include as a qualified full-time employee an ex-offender, hired on or after January 1, 2018, previously convicted of a felony who is between 18 to 25 years of age, inclusive, and who demonstrates completion of a work readiness program and an ex-foster youth, hired on or after January 1, 2018, who, among other things, demonstrates completion of a work readiness program.
     
 
  SB 524 (Vidak R)   Employment: violations: good faith defense.
  Summary: Under current law, an employer may face administrative sanctions, civil fines and penalties, and criminal penalties for violations of employment statutes or regulations. This bill would permit a person to raise as an affirmative defense that, at the time of an alleged violation of statute or regulation in a judicial or administrative proceeding, the person was acting in good faith, had sought, relied upon, and conformed with a published opinion letter or enforcement policy of the division, and had provided true and correct information to the division in seeking the opinion letter or enforcement policy.
     
 
  SB 551 (Hueso D)   California Pollution Control Financing Authority: Capital Access Loan Program for Small Businesses.
  Summary: Current law, commencing April 1, 2017, requires a participating financial institution, when making a qualified loan that will be enrolled under existing law, to require the qualified business to which the loan is made to pay a fee of not less than 2% of the principal amount of the loan, but not more than 3 ½ % of the principal amount, for deposit in the loss reserve account. This bil would require the qualified business to which the loan is made to pay a fee of not less than 1% of the principal loan, but not more than 3 ½ % of the principal amount, for deposit in the loss reserve account.
     
 
  SB 555 (Morrell R)   Regulations: 5-year review and report.
  Summary: Would require a state agency to review and report on regulations that it adopts or amends on and after January 1, 2018, 5 years after adoption, as specified. The bill would require that the review and report include 10 specified factors, including a summary of the written criticisms of the regulation received by the agency within the immediately preceding 5 years and the estimated economic, small business, and consumer impact of the regulation. The bill would require the Office of Administrative Law to make the review and report available on the office’s Internet Web site.
     
 
  SB 562 (Lara D)   The Healthy California Act.
  Summary: Current law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. This bill, the Healthy California Act, would create the Healthy California program to provide comprehensive universal single-payer health care coverage and a health care cost control system for the benefit of all residents of the state.
     
 
  SB 600 (Galgiani D)   Sales and use taxes: exemption: manufacturing and research: useful life: electric power generation.
  Summary: Sales and use tax laws partially exempt from those taxes, for a specified period, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property purchased for use by a qualified person, as defined, to be used primarily in manufacturing or other processes, and in research and development. Consumables with a useful life of less than one year do not qualify for exemption, and useful life is defined by reference to state income or franchise taxes. This bill would additionally define useful life by reference to manufacturer or other warranties, maintenance contracts, and normal replacement as established by industry or business practices and would provide that those definitions would apply on and after July 1, 2014.
     
 
  SB 605 (Galgiani D)   Small Business Procurement and Contract Act: small business.
  Summary: Current law defines a “microbusiness” as a small business which, together with affiliates, has average annual gross receipts of $2.5 million, as may be adjusted to reflect changes in the California Consumer Price Index, or less over the previous 3 years. Current law requires the director to conduct a biennial review of those average annual gross receipt levels and authorizes the Director of General Services to adjust the average annual gross receipts threshold to reflect changes in the California Consumer Price Index for all items. This bill would revise those definitions by increasing the dollar amount threshold for a small business to $15 million and for a microbusiness to $5 million and would require those dollar amounts to be adjusted to reflect changes in the California Consumer Price Index biennially.
     
 
  SB 640 (Hertzberg D)   Taxation.
  Summary: Would make legislative findings regarding responding to pending proposals for federal tax reform and California’s tax climate and would state that the intent of the bill is to make 3 changes to taxation within the state, including broadening the tax base by imposing a modest sales tax on services. This bill would also establish the Retail Sales Tax on Services Fund in the State Treasury and state the intent of the Legislature that moneys in the fund would be appropriated to, among other purposes, provide tax relief to middle- and low-income Californians to offset the effect of a sales tax on services.
     
 
  SB 726 (Wiener D)   Taxation: estate, gift, and generation-skipping transfer taxes.
  Summary: Current law, as added by an initiative measure that was approved by voters as Proposition 6 at the June 8, 1982, statewide primary election, prohibits the Legislature or a political subdivision of the state from imposing any tax on or by reason of any transfer occurring by reason of death. Current law imposes a California estate tax, commonly referred to as the “pick up tax,” equal to a certain portion of the maximum allowable amount of credit for state death taxes allowable under applicable federal estate tax law. The Economic Growth and Tax Relief Reconciliation Act of 2001 phased out the allowance of this credit, and, as of 2005, no longer allows a person to claim a credit of this nature under federal law. Therefore, the “pick up tax” is no longer imposed in California. This bill would propose to the voters a repeal of the above initiative measure.

 

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