BILL NUMBER: AB 978 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 7, 2009
AMENDED IN ASSEMBLY APRIL 21, 2009
INTRODUCED BY Assembly Member V. Manuel Perez
FEBRUARY 26, 2009
An act to add Chapter 3.9 (commencing with Section 7297)
to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating
to taxation. An act to add Section 11547.5 to the
Government Code, relating to the State Chief Information Officer.
LEGISLATIVE COUNSEL'S DIGEST
AB 978, as amended, V. Manuel Perez. Transactions and use
taxes: cities: counties: economic development. State
Chief Information Officer: duties.
Existing law requires the State Chief Information Officer, until
January 1, 2013, to work to improve organizational maturity and
capacity in the effective management of information technology, and
to establish performance management and improvement processes to
ensure state information technology systems and services are
efficient and effective.
This bill would require the State Chief Information Officer to
develop an online master application for businesses to file for state
permits and licenses, and work in collaboration with other state
agencies to accomplish this duty.
Existing law authorizes various local governmental entities, in
accordance with certain requirements and limitations, to adopt
ordinances to levy transactions and use taxes pursuant to the
Transactions and Use Tax Law and to contract with the State Board of
Equalization to perform all functions incident to the administrative
and operation of the ordinance.
This bill would additionally authorize the city council of a city
and the board of supervisors of a county to impose a transactions and
use tax at a rate of 0.125% by the adoption of an ordinance, as
specified, if certain conditions are met. Revenues from the tax could
be used only for funding economic development within the county,
including the construction and acquisition of facilities within the
county, as provided.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) California's dominance in many economic areas is based, in
part, on the significant role small businesses play in the state's
$1.8 trillion economy. Businesses with less than 100 employees
comprise more than 98.3 percent of all businesses and are responsible
for employing more than 57.9 percent of all workers in the state.
(b) Small businesses function as economic engines, especially in
challenging economic times. During the nation's economic downturn
from 1999 to 2003, microenterprises (businesses with less than five
employees) created 318,183 new jobs or 77 percent of all employment
growth, while larger businesses with more than 50 employees lost over
444,000 jobs.
(c) Regulatory burdens and costs continue to be a major concern
for small businesses. For the last 10 years, the federal Small
Business Administration has conducted a study that analyzes the costs
of federal government regulations on businesses. This research shows
that small businesses continue to bear a disproportionate share of
the federal regulatory burden. On a per employee basis, it costs
about two thousand four hundred dollars ($2,400), or 45 percent, more
for small firms to comply with federal regulations than their larger
counterparts.
(d) While the specific financial impact of state regulations on
small businesses is unknown, state agencies are required to consider
the costs of adopting regulations on the California economy, in
general, and on small business, specifically.
(e) Given these difficult economic times for small businesses, it
is fair and appropriate to expend resources to reduce the cost of
applying for state administered licenses and permits by developing an
online master application.
SEC. 2. Section 11547.5 is added to the
Government Code , to read:
11547.5. (a) The State Chief Information Officer shall develop an
online master application for businesses to file for state permits
and licenses, and work in collaboration with the Secretary of State
and the Secretary of Consumer Services to accomplish this duty. The
State Chief Information Officer may delegate the development of the
actual application to an appropriate state agency.
(b) The State Chief Information Officer shall do all of the
following:
(1) Establish the requirements for the initiation of the
information technology project.
(2) Define the resource requirements and proposed technical
solution that is in compliance with statewide strategies, policies,
and procedures.
(3) Consult with state agencies during the initial project
planning to ensure that project proposals are based on well-defined
programmatic needs, clearly identify programmatic benefits, and
consider feasible alternatives to address the identified needs of
businesses that apply for multiple state licenses and permits over a
period of time.
(4) Work with the Secretary of State and the Secretary of Consumer
Services to ensure that boards and commissions have the appropriate
technical assistance to use and maintain the online application
system.
SECTION 1. Chapter 3.9 (commencing with Section
7297) is added to Part 1.7 of Division 2 of the Revenue and Taxation
Code, to read:
CHAPTER 3.9. CITY AND COUNTY TRANSACTIONS AND USE TAXES:
ECONOMIC DEVELOPMENT PROJECTS
7297. (a) In addition to the tax levied pursuant to Part 1.5
(commencing with Section 7200), and any other tax authorized by this
part, the city council of a city and the board of supervisors of a
county may impose a transactions and use tax for the purposes
described in paragraph (5), by the adoption of an ordinance in
accordance with this part if each of the following conditions are
met:
(1) The ordinance imposing the city wide tax is submitted to and
approved by the voters of the city by a two-thirds vote of those
voters voting on the ordinance in accordance with Article 3.7
(commencing with Section 53720) of Chapter 4 of Part 1 of Division 2
of Title 5 of the Government Code.
(2) The ordinance imposing county wide tax is submitted to and
approved by the voters of the county by a two-thirds vote of those
voters voting on the ordinance in accordance with Article 3.7
(commencing with Section 53720) of Chapter 4 of Part 1 of Division 2
of Title 5 of the Government Code.
(3) The ordinance includes an expenditure plan describing the
specific purposes for which the revenues from the tax may be
expended.
(4) The tax is imposed at a rate of 0.125 percent for a period not
to exceed eight years.
(5) The revenues collected from the tax are used only for funding
economic development projects, including, but not limited to, the
construction and acquisition of facilities within the city or county.
(6) The transactions and use tax conforms to Part 1.6 (commencing
with Section 7251) including the limitation in Section 7251.1 on the
combined rate of all taxes in the city or county imposed pursuant to
that part.
(b) The city council or the board of supervisors may impose a
transactions and use tax in any succeeding period not to exceed eight
years per period, if all of the conditions specified in subdivision
(a) are met for that succeeding period.