BILL NUMBER: AB 1486 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Member Furutani
FEBRUARY 27, 2009
An act to amend Section 554 of the Labor Code, relating
to employment. An act to add Section 6018.9 to the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1486, as amended, Furutani. Employment: days of rest.
Sales and use taxes: nonprofit membership
organizations.
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. That
law, with certain exceptions, defines a retailer as a seller who
makes any retail sale of tangible personal property and as a person
who makes more than 2 retail sales of tangible personal property
during any 12-month period, and defines a retail sale as a sale of
tangible personal property for any purpose other than resale in the
regular course of business.
This bill would provide that a membership organization, as
described in Section 501(c) of the Internal Revenue Code, is the
consumer, and not a retailer, of tangible personal property that it
provides to its members, as provided, so that the retail sale subject
to tax is the sale of tangible personal property to the membership
organization.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and the Transactions and Use Tax Law
authorizes districts, as specified, to impose transactions and use
taxes in conformity with the Sales and Use Tax Law. Exemptions from
state sales and use taxes are incorporated in these taxes. Section
2230 of the Revenue and Taxation Code provides that the state will
reimburse counties and cities for revenue losses caused by the
enactment of sales and use tax exemptions.
This bill would provide that, notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for sales and use tax revenues
lost by them pursuant to this bill.
This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
Existing law provides that a person employed in any occupation of
labor is entitled to one day's rest in 7 and prohibits an employer
from requiring his or her employees to work more than 6 days in 7.
However, existing law establishes exceptions from those provisions,
except where a valid collective bargaining agreement that covers the
hours of employees exists, for emergencies, other work performed in
the protection of life or property from loss or destruction, common
carriers engaged in or connected with the movement of trains, and
employees in an agricultural occupation. Existing law also authorizes
the Chief of the Division of Labor Standards to exempt other
employers or employees to prevent hardship.
This bill would make nonsubstantive changes to those provisions
related to those exemptions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6018.9 is added to the
Revenue and Taxation Code , to read:
6018.9. An organization described in Section 501(c) of the
Internal Revenue Code is a consumer of, and shall not be considered a
retailer within the provisions of this part for purposes of any
transfer of, tangible personal property to its members, as defined in
Section 5056 of the Corporations Code, if the following requirements
are met:
(a) The tangible personal property bears a logo or other
identifying mark of the organization and is a promotional item or
other item commonly associated with use by a member to demonstrate
the member's association with, or membership in, the organization.
(b) The cost to the member of the organization for the acquisition
of the tangible personal property is not more than the cost to the
nonprofit organization to obtain and transfer to the member the
tangible personal property, including any applicable sales or use tax
paid by the nonprofit organization.
(c) Reasonable steps are taken by the organization to ensure that
no member is allowed to acquire more than 30 identical items of
tangible personal property or to resell the items to another person.
SEC. 2. Notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any sales and use
tax revenues lost by it under this act.
SEC. 3. This act provides for a tax levy within the
meaning of Article IV of the Constitution and shall go into
immediate effect. However, the provisions of this act shall become
operative on the first day of the first calendar quarter commencing
more than 90 days after the effective date of this act.
SECTION 1. Section 554 of the Labor Code is
amended to read:
554. (a) Sections 551 and 552 shall not apply to any cases of
emergency nor to work performed in the protection of life or property
from loss or destruction, nor to any common carrier engaged in or
connected with the movement of trains. This chapter, with the
exception of Section 558, shall not apply to any person employed in
an agricultural occupation, as defined in Order No. 14-80 (operative
January 1, 1998) of the Industrial Welfare Commission. This chapter
does not prevent an accumulation of days of rest when the nature of
the employment reasonably requires that the employee work seven or
more consecutive days, if in each calendar month the employee
receives days of rest equivalent to one day's rest in seven. The
requirement respecting the equivalent of one day's rest in seven
shall apply, notwithstanding the other provisions of this chapter
relating to collective bargaining agreements, where the employer and
a labor organization representing employees of the employer have
entered into a valid collective bargaining agreement respecting the
hours of work of the employees, unless the agreement expressly
provides otherwise.
(b) In addition to the exceptions specified in subdivision (a),
the Chief of the Division of Labor Standards Enforcement may, when in
his or her judgment hardship will result, exempt an employer or
employees from the provisions of Sections 551 and 552.