AB 2712, as introduced, Chiu. Business regulation.
Existing law permits the legislative body of an incorporated city, in the exercise of its police power, to license any kind of business not prohibited by law that is transacted and carried on within its jurisdiction. Existing law prohibits the application of license fees, if measured by the licensee’s income or gross receipts, to specified nonprofit organizations, among others.
This bill would make nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 16000 of the Business and Professions
2Code is amended to read:
(a) The legislative body of an incorporated city may,
4in the exercise of its police power, and for the purpose of
5regulation, as herein provided, and not otherwise, license any kind
6of business not prohibited by law transacted and carried on within
7the limits of its jurisdiction, including all shows, exhibitions and
8lawful games, and may fix the rates of the license fee and provide
P2 1for its collection by suit or otherwise. Any legislative body,
2including the legislative body of a charter city, that fixes the rate
3of license fees pursuant to this subdivision upon a business
4operating both within and outside the legislative body’s taxing
5jurisdiction, shall levy the license fee so that the measure of the
6fee fairly reflects that proportion of the activity actually carried
7on within the taxing
jurisdiction.
8(b) begin deleteNo end deletebegin insertA end insertlicense fee levied pursuant to subdivision (a) that is
9measured by the licensee’s income or gross receipts, whether levied
10by a charter or general law city, shallbegin insert notend insert apply to any nonprofit
11organization that is exempted from taxes by Chapter 4
12(commencing with Section 23701) of Part 11 of Division 2 of the
13Revenue and Taxation Code or Subchapter F (commencing with
14Section 501) of Chapter 1 of Subtitle A of the Internal Revenue
15Code of 1986, or the successor of either, or to any minister,
16clergyman, Christian Science practitioner, rabbi, or priest of any
17religious organization that has been granted an exemption from
18federal
income tax by the United States Commissioner of Internal
19Revenue as an organization described in Section 501(c)(3) of the
20Internal Revenue Code or a successor to that section.
21(c) Before a city, including a charter city, issues a business
22license to a person to conduct business as a contractor, as defined
23in Section 7026, the city shall verify that the person is licensed by
24the Contractors’ State License Board.
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