BILL NUMBER: SB 688 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Galgiani
FEBRUARY 22, 2013
An act to amend Section 24275 of the Health and Safety
Code, relating to asbestos safety add Section 6358.3
to, and to repeal Section 6018.1 of, the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy .
LEGISLATIVE COUNSEL'S DIGEST
SB 688, as amended, Galgiani. Asbestos safety:
regulations. Sales and use taxes: exemptions: animals:
drug and medicines.
Existing sales and use tax laws impose 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,
and provides various exemptions from those taxes. Existing sales and
use tax laws, with certain exceptions, define 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.
Existing sales and use tax law provides that a licensed
veterinarian is a consumer of, and not a retailer of, drugs and
medicines used or furnished by the veterinarian in the performance of
his or her professional services, so that the retail sale subject to
tax is the sale of drugs and medicine to the licensed veterinarian.
This bill would repeal the provision that a licensed veterinarian
is a consumer of drugs and medicines used or furnished by the
veterinarian in the performance of his or her professional services.
This bill would exempt from sales and use taxes the gross receipts
from the sale in this state of, and the storage, use, or other
consumption in this state of, drugs and medicines used, furnished, or
sold by a licensed veterinarian, a city, county, city and county, or
other local government animal shelter, or a nonprofit animal welfare
or rescue organization for the treatment of animals.
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 existing law authorizes
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which conforms to
the Sales and Use Tax Law. Amendments to state sales and use taxes
are incorporated into these laws.
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 any 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.
Under existing law, if the State Department of Public Health
believes that the air monitoring standard for asbestos in public
school buildings should be revised, the department is required to
promulgate a regulation to that effect. Existing law requires the
department to provide the Office of Public School Construction with
appropriate sampling methodology for use in taking air samples in
public school buildings.
This bill would make a technical, nonsubstantive change to these
provisions.
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 6018.1 of the
Revenue and Taxation Code is repealed.
6018.1. A licensed veterinarian is a consumer of, and shall not
be considered a retailer within the provisions of this part with
respect to, drugs and medicines used or furnished by him or her in
the performance of his or her professional services.
For the purposes of this section, "drugs and medicines" includes
substances or preparations intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in animals and which
is commonly recognized as a substance or preparation intended for
this use. The term includes legend drugs, pills and capsules (other
than vitamins), liquid medications, injected drugs, ointments,
vaccines, intravenous fluids, and medicated soaps if those soaps are
available only to veterinarians. The term does not include vitamins,
shampoos, pet foods, prescription diet foods, artificial diets, flea
powders, and flea sprays.
SEC. 2. Section 6358.3 is added to the
Revenue and Taxation Code , to read:
6358.3. (a) There are exempted from the taxes imposed by this
part the gross receipts from the sale of, and the storage, use, or
other consumption in this state of, drugs and medicines used,
furnished, or sold by a licensed veterinarian, a city, county, city
and county, or other local government animal shelter, or a nonprofit
animal welfare or rescue organization for the treatment of animals.
(b) For purposes of this section:
(1) "Animal" includes any member of the animal kingdom other than
humans, and includes fowl, fish, and reptiles, whether wild or
domestic.
(2) "Drugs and medicines" includes any substance or preparation
intended for use in the diagnosis, cure, mitigation, treatment, or
prevention of disease in animals and which is commonly recognized as
a substance or preparation intended for this use. The term includes
legend drugs, pills and capsules (other than vitamins), liquid
medications, injected drugs, ointments, vaccines, intravenous fluids,
and medicated soaps if those soaps are available only to
veterinarians. The term does not include vitamins, shampoos, pet
foods, prescription diet foods, artificial diets, flea powders, and
flea sprays.
(3) "Licensed veterinarian" means a person licensed pursuant to
Chapter 11 (commencing with Section 4800) of Division 2 of the
Business and Professions Code.
(4) "Nonprofit animal welfare or rescue organization" means any
organization, formed and operated for the primary purpose of
prevention of abuse, neglect, or exploitation of animals, that is
exempt from tax under Section 23701 as an organization described in
Section 23701d.
SEC. 3. 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. 4. 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 24275 of the Health and
Safety Code is amended to read:
24275. (a) If the State Department of Public Health believes
that the air monitoring standard for asbestos in public school
buildings as specified in Section 49410.7 of the Education Code
should be revised, it shall promulgate a regulation to that effect.
(b) The department shall provide the Office of Public School
Construction with appropriate sampling methodology for use in taking
air samples in public school buildings.