California 2011-2012 Regular Session Status: Passed Assembly 1 D cosponsors

AB 780 — Public contracts: fixed price contracts: sales and use taxes rate changes: transactions and use taxes.

Last action — In committee: Held under submission.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2011-2012 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law imposes requirements on public entities with respect to the terms of public contracts. The Sales and Use Tax Law imposes a state sales and use tax on retailers and on the storage, use, or other consumption of tangible personal property in this state at the combined rate of<caml:Numerator>1</caml:Numerator><caml:Denominator>4</caml:Denominator></caml:Fraction>%"?> 614% of the gross receipts from the retail sale of tangible personal property in this state and of the sales price of tangible personal property purchased from any retailer for storage, use, or other consumption in this state that is stored, used, or otherwise consumed in this state. This bill would provide, for a fixed price contract, as specified, between a government entity and a contractor, that the contractor is entitled to an increase in payment for a change in the contract price that is attributable to an increase in the taxes imposed by the Sales and Use Tax Law, and the government entity is entitled to a reduction in payment for a change in the contract price that is attributable to a decrease in the taxes imposed by the Sales and Use Tax Law, with the increase or decrease paid in accordance with the contract terms or as agreed to by the parties, as prescribed. The bill would also authorize the government entity to require the contractor to submit invoices for specified items consumed solely for use in the public work pursuant to the contract entered into by the government entity and the contractor. By placing new duties on local officials with respect to their contract practices, the bill would impose a state-mandated local program. Existing laws authorize 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. The Transactions and Use Tax Law requires any transactions and use taxes ordinance adopted in accordance with that law to include specified provisions, as may be amended, including provisions that exempt from the tax the sale of, or the storage, use, or other consumption of, tangible personal property obligated to be furnished or purchased for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance, and provisions that exempt from tax a lease of, or possession of, or the exercise of any right or power over, tangible personal property during the period of time for which there is an obligation to lease the property for an amount fixed by the lease prior to the operative date of the ordinance. That law provides that property is not deemed obligated pursuant to a contract or lease if any party has an unconditional right to terminate the contract or lease. This bill would provide that the sale or lease of tangible personal property to a government entity, as defined, is deemed obligated pursuant to a contract or lease for any period of time for which the contractor or lessor does not have the unconditional right to terminate that contract or lease. Section 2230 of the Revenue and Taxation Code provides that the state will reimburse cities and counties 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 cities and counties for sales and use tax revenues lost by them pursuant to this bill. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Bill Text

Action History

  1. In committee: Held under submission.

  2. In committee: Referred to APPR. suspense file.

  3. Read second time and amended. Re-referred to Com. on APPR.

  4. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 6).

  5. In committee: Set, first hearing. Hearing canceled at the request of author.

  6. Referred to Com. on GOV. & F.

  7. In Senate. Read first time. To Com. on RLS. for assignment.

  8. Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1653.)

  9. Read second time. Ordered to third reading.

  10. From committee: Do pass. (Ayes 17. Noes 0.) (May 27).

  11. In committee: Set, first hearing. Referred to APPR. suspense file.

  12. Re-referred to Com. on APPR.

  13. Read second time and amended.

  14. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (May 2).

  15. In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

  16. In committee: Hearing postponed by committee.

  17. Re-referred to Com. on REV. & TAX.

  18. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  19. Referred to Com. on REV. & TAX.

  20. From printer. May be heard in committee March 20.

  21. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Placed on Appropriations Suspense file.

Passed 8 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 8001
Total 8001
% of votes cast 89%0%0%11%
How each member voted (9)
Member Party Vote
Runner — Not Voting
Price — Yea
Alquist — Yea
Kehoe — Yea
Lieu — Yea
Pavley — Yea
Steinberg — Yea
Walters — Yea
Emmerson — Yea

Official roll call →

AB 780 CALDERON Assembly Third Reading

Passed 78 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 2000
Unaffiliated 75002
Democratic 1000
Total 78002
% of votes cast 98%0%0%3%
How each member voted (80)
Member Party Vote
Yamada — Yea
Feuer — Yea
Furutani — Yea
Hagman — Yea
John A. Pérez — Yea
Mitchell — Yea
Halderman — Yea
Hall — Yea
Atkins — Yea
Hayashi — Yea
Butler — Yea
Hill — Yea
Hueso — Yea
Huffman — Yea
Campos — Yea
Portantino — Yea
Knight — Yea
Lara — Yea
Carter — Yea
Allen — Yea
Mendoza — Yea
Miller — Yea
Bonilla — Yea
Alejo — Yea
Blumenfield — Yea
Chesbro — Yea
Cook — Yea
Davis — Yea
Donnelly — Yea
Nestande — Yea
Norby — Yea
Olsen — Yea
Perea — Yea
Skinner — Yea
Solorio — Yea
Valadao — Yea
Wagner — Yea
Wieckowski — Yea
Fong — Yea
Fletcher — Yea
Galgiani — Yea
Gatto — Yea
Gordon — Not Voting
Gorell — Not Voting
Beall — Yea
Block — Yea
Ma — Yea
Mansoor — Yea
Monning — Yea
Morrell — Yea
Smyth — Yea
Achadjian — Yea
Ammiano — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Huber — Yea
Jeffries — Yea
Logue — Yea
Nielsen — Yea
Pan — Yea
Silva — Yea
Swanson — Yea
Torres — Yea
Williams — Yea
Cedillo — Yea
Conway — Yea
Eng — Yea
Dickinson — Yea
Fuentes — Yea
Garrick — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass.

Passed 17 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 16000
Democratic 1000
Total 17000
% of votes cast 100%0%0%0%
How each member voted (17)
Member Party Vote
Fuentes — Yea
Campos — Yea
Hall — Yea
Hill — Yea
Lara — Yea
Mitchell — Yea
Davis — Yea
Donnelly — Yea
Norby — Yea
Wagner — Yea
Blumenfield — Yea
Bradford — Yea
Harkey — Yea
Nielsen — Yea
Solorio — Yea
Gatto — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

What does AB 780 do?
Existing law imposes requirements on public entities with respect to the terms of public contracts. The Sales and Use Tax Law imposes a state sales and use tax on retailers and on the storage, use, or other consumption of tangible personal property in this state at the combined rate of<caml:Numerator>1</caml:Numerator><caml:Denominator>4</caml:Denominator></caml:Fraction>%"?> 614% of the gross receipts from the retail sale of tangible personal property in this state and of the sales price of tangible personal property purchased from any retailer for storage, use, or other consumption in this state that is stored, used, or otherwise consumed in this state. This bill would provide, for a fixed price contract, as specified, between a government entity and a contractor, that the contractor is entitled to an increase in payment for a change in the contract price that is attributable to an increase in the taxes imposed by the Sales and Use Tax Law, and the government entity is entitled to a reduction in payment for a change in the contract price that is attributable to a decrease in the taxes imposed by the Sales and Use Tax Law, with the increase or decrease paid in accordance with the contract terms or as agreed to by the parties, as prescribed. The bill would also authorize the government entity to require the contractor to submit invoices for specified items consumed solely for use in the public work pursuant to the contract entered into by the government entity and the contractor. By placing new duties on local officials with respect to their contract practices, the bill would impose a state-mandated local program. Existing laws authorize 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. The Transactions and Use Tax Law requires any transactions and use taxes ordinance adopted in accordance with that law to include specified provisions, as may be amended, including provisions that exempt from the tax the sale of, or the storage, use, or other consumption of, tangible personal property obligated to be furnished or purchased for a fixed price pursuant to a contract entered into prior to the operative date of the ordinance, and provisions that exempt from tax a lease of, or possession of, or the exercise of any right or power over, tangible personal property during the period of time for which there is an obligation to lease the property for an amount fixed by the lease prior to the operative date of the ordinance. That law provides that property is not deemed obligated pursuant to a contract or lease if any party has an unconditional right to terminate the contract or lease. This bill would provide that the sale or lease of tangible personal property to a government entity, as defined, is deemed obligated pursuant to a contract or lease for any period of time for which the contractor or lessor does not have the unconditional right to terminate that contract or lease. Section 2230 of the Revenue and Taxation Code provides that the state will reimburse cities and counties 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 cities and counties for sales and use tax revenues lost by them pursuant to this bill. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Who sponsors AB 780?
AB 780 is sponsored by Calderon, Lisa (Democratic).
What is the current status of AB 780?
This bill died with 2011-2012 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 780?
Track AB 780 free on One Click Politics — get push/email alerts when it moves.

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