BILL NUMBER: AB 83	CHAPTERED  09/30/00

	CHAPTER   1070
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 14, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   MAY 25, 2000
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 12, 1999
	AMENDED IN SENATE   JUNE 30, 1999
	AMENDED IN ASSEMBLY   MAY 27, 1999
	AMENDED IN ASSEMBLY   MAY 24, 1999
	AMENDED IN ASSEMBLY   MAY 17, 1999

INTRODUCED BY   Assembly Member Cardenas

                        DECEMBER 9, 1998

   An act to add Chapter 4 (commencing with Section 16300) to Part 1
of Division 7 of the Business and Professions Code, relating to
business licensing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 83, Cardenas.  Business licenses and fees:  employment
relationship.
   Existing law authorizes cities, including chartered cities, in the
exercise of their police power and for the purpose of regulation, to
license any kind of business not prohibited by law transacted and
carried on within the limits of their jurisdictions, and to fix the
rates of the license fee and provide for its collection, according to
specified criteria.
   This bill would prohibit any city, including a charter city, city
and county, or county, from requiring an employee to obtain a
business license or home business occupation permit for, or imposing
a business tax or registration fee based on income earned for
services performed for an employer by the employee in an employment
relationship, as specified.
    This bill would become operative only if AB 1992 is enacted and
becomes effective on or before January 1, 2001.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 4 (commencing with Section 16300) is added to
Part 1 of Division 7 of the Business and Professions Code, to read:

      CHAPTER 4.  EMPLOYMENT ACTIVITIES

   16300.  (a) Notwithstanding any other provision of this part,
Chapter 1.5 (commencing with Section 7284) of Part 1.7 of Division 2
of the Revenue and Taxation Code, or Chapter 3 (commencing with
Section 37100) of Part 2 of Division 2 of Title 4 of the Government
Code, no city, including a charter city, city and county, or county
may require an employee to obtain a business license or home business
occupation permit for, or impose a business tax or registration fee
based on income earned for services performed for an employer by the
employee in an employment relationship as determined by reference to
the common law factors as reflected in rulings or guidelines used by
either the Internal Revenue Service or the Franchise Tax Board.  When
there is a dispute between a local jurisdiction and a taxpayer, the
manner in which a taxpayer reports or reported income to the
Franchise Tax Board or the Internal Revenue Service shall create a
presumption regarding whether the taxpayer performed services for an
employer as an employee or operated a business entity.  For purposes
of this section, "income" includes income paid currently or deferred
and income that is fixed or contingent.
   (b) Nothing in this section shall be interpreted to limit the
authority of a local jurisdiction to adopt and enforce zoning, health
and safety ordinances, or regulations that define and limit
activities that are permissible within its jurisdiction for the
purposes of health, safety, welfare, and the provisions of applicable
noise ordinances.
  SEC. 2.  This act shall only become operative if this act and
Assembly Bill 1992 of the 1999-2000 Regular Session are both enacted
and become effective on or before January 1, 2001.