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_ //.f�-� Legislative Bill Action _ ............................................................... permit or certificate of registration and would als� A 453 (Yee). Public Works Contracts: provide for individual reporting of use tax on Compensation of Contractors. This bill pro- personal income tax returns. Retailers that conduc poses to overturn a long-standing rule of law that business with the State should abide by their says if a contract is ruled invalid, no more pay- business responsibility to collect and remit sales ments can be made. AB 45 would restrict this rule and use tax on all transactions with California of law and give contractors greater protection at residents and businesses. SB 1009 would require the expense of public entities. This bill would that vendors that wish to engage in business with permit payment after the contract is void. This bill State agencies must register with the State Board of is similar to AB 750 (Brewer — 1998), which was Equalization (SBOE). By registering with SBOE, vetoed by Governor Pete Wilson. Staff: Natasha these businesses will be considered as a"retailer Fooman, Status: Governor's Desk Position: engaged in business in this state" and obligated to Request for Veto. make reports on sales delivered to Californians. Not only will this result in additional revenues for B 4 (Alpert). Transportation Funding the State and local agencies but also level the Maintenance of Effort. The Maintenance of playing field with businesses that currently observe Effort (MOE) for continued expenditure of city and their responsibility to collect and remit sales and county generaf funds for streeUroad purposes use tax. Staff: Jean Korinke, Status: To Enrolt- came into effect when AB 2928 was adopted and ment Position: Request for Signature. provided new monies to cities and counties for local streets and road purposes. The intent of the MOE TRANSPORTATION, COMMUNICATIONS AND is to ensure expenditure of city and county general fund monies at previous levels to recognize the PUBLIC WORKS benefit of the new monies on the transportation network. Proposition 42 continued the AB 2829 � AB 299 (Lowenthal). Vehicles: Taxicabs allocations and continued that MOE requirement. and Passenger Vehicle for Hire: Violations: Proposition 42 money to local government has Impoundment: Charter-Party Carriers of been temporarily suspended to meet the state's Passengers: Advertisement as Taxicabs. A� budget deficit. This bill suspends the MOE for the 299 requires a magistrate, when presented with an Period of time that the Proposition 42 monies are affidavit from a peace officer establishing reason- suspended. Staff: Natasha Fooman; Status: able cause to believe that a vehicle is being oper- Governor's Desk Position: Request for Signa- ated as a for hire taxicab or passenger vehicle in ture. violation of local licensing requirements, to issue a warrant or authorize the peace officer to seize the SB 966 (Alarcon). Prevailing Wages on vehicle in question. Staff: Natasha Fooman, Public Works: Contractor's Cost. The League Status: Governor's Desk, Position: Request for continues to oppose SB 966 based on existing Signature. policy. On 9/9/03, B 9 6 was amended removing opposition from CSAC and ACWA. SB 966 would AB 377 (Chan). Vehicles: Exhaust Systems: authorize a contractor to bring an action in a court Whistle-Tip. AB 377 prohibits a person from of competent jurisdiction to recover from a local modifying the exhaust system of a motor vehicle agency any increased costs incurred by the con- with a whistle-tip. Additionally, AB 377 states that a tractor as a result of any decision that classifies, person may not operate a motor vehicle if that after the time at which the awarding body accepts vehicle's exhaust system is modified. Finally, AB the contractor's bid, a project as a"public work." 377 prohibits a person from engaging in the busi- Under current law prevailing wages are required to ness of installing a whistle-top onto a motor vehicle. be paid on local public projects that are "public Staff: Natasha Fooman, Status: Governor's Works" - this is not in dispute. Unfortunately, this Desk, Position: Request for Signature. bill imposes on local agencies the cost for prevail- ing wages and penalties in circumstances where, � Visit the League's Official Web Site--www.cacities.org PRIORITY FOCUS/PAGE 7