SB 560, as introduced, Anderson. Disaster relief.
The California Emergency Services Act specifies those events, including conditions of disaster or of extreme peril to the safety of persons and property within the state caused by such conditions as fire, flood, storm, or earthquake, constituting a state emergency for purposes of the act and provides for specified activities in preparation or response to those events.
This bill would state the Legislature’s intent to enact legislation that would facilitate rapid response and aid by out-of-state businesses to state declared disasters by providing that an out-of-state business that conducts operations within the state for purposes of performing work or services related to a declared state disaster or emergency should not be considered to have established a level of presence that would require that business or its out-of-state employees to be subject to any state and local licensing or registration requirements or to register, file, and remit state or local taxes and fees, such as state corporation taxes or personal income taxes, unemployment insurance, sales and use taxes on equipment used for performing the work or service, or state or local occupational licensing fees.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) During times of storm, flood, fire, earthquake, hurricane, or
4other disaster or emergency, many companies bring in resources
5and personnel from other states throughout the United States on a
6temporary basis to expedite the often enormous and overwhelming
7task of cleaning up, restoring and repairing damaged buildings,
8equipment, and property, or even deploying or building new
9replacement facilities in the state.
10(b) This may involve the need for out-of-state companies,
11including out-of-state affiliates of companies based in the state to
12bring in resources, property or personnel that previously have had
13no
connection to the state, to perform activity in the state including,
14but not limited to, repairing, renovating, installing, building,
15rendering services, or other business activities and for which
16personnel may be located in the state for extended periods of time
17to perform such activities.
18(c) During such time of operating in the state on a temporary
19basis solely for purposes of helping the state recover from the
20disaster or emergency, these companies and individual employees
21should not be burdened by any requirements for business and
22employee taxes as a result of such activities in the state for a
23temporary period.
24(d) The state’s nexus and residency thresholds are intended for
25businesses and individuals in the state as part of the conduct of
26regular business operations or who intend to reside in the state and
27should not be directed at companies and individuals coming into
28the
state on a temporary basis to provide help and assistance in
29response to a declared state disaster or emergency.
30(e) To ensure that companies may focus on quick response to
31the needs of the state and its citizens during a declared state disaster
32or emergency it is appropriate for the Legislature to deem that such
33activity for a reasonable period of time during and after the disaster
34or emergency for repairing and restoration of the often devastating
35damage to property and infrastructure in the state shall not establish
36presence, residency, nor doing business in the state nor any other
37criteria for purposes of state and local taxes, licensing, and
38regulatory requirements.
It is the intent of the Legislature to enact legislation
2that would facilitate rapid response and aid by out-of-state
3businesses to state declared disasters by providing that an
4out-of-state business that conducts operations within the state for
5purposes of performing work or services related to a declared state
6disaster or emergency should not be considered to have established
7a level of presence that would require that business or its
8out-of-state employees to be subject to any state and local licensing
9or registration requirements or to register, file, and remit state or
10local taxes and fees, such as state corporation taxes or personal
11income taxes, unemployment insurance, sales and use taxes on
12equipment used for performing the work or service, or state or
13local occupational licensing
fees.
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