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AB 1500 Fails; SB 1040 can’t move forward

By Janis Mork

September 11, 2012(San Diego)- Language in Senate Bill 1040 which sought to repeal the state fire parcel fees will not take effect, since its enactment was tied to a companion measure, Assembly Bill 1500, that failed passage.

 AB 1500, a Democratic-backed bill, aimed to provide college scholarship funds by increasing corporate taxes, but Republicans opposed the plan. This bill would have helped provide financial aid to students for the 2012-2013 school year. Introduced by Assembly Speaker John A. Pérez, AB 1500 was been amended several times.

According to Pérez’s press secretary John Vigna, AB 1500 would have closed a  “loophole that allows out of state businesses to pay lower tax rates than California based businesses. Every corporation in California is paying the same rate.”

Bill Bird, communications director for Senate minority leader Bob Huff, said Huff, a Republican, opposed the plan because “You’re creating a new social program that is going to cost tax payers billions of dollars.”

SB 1040 bill, authored by Democratic Senator Noreen Evans, included language to repeal the fire parcel fee contingent on passage of AB 1500, Vigna told ECM.

On September 1, AB 1500 received a 22-15 vote on the Senate floor-- five votes shy of the 2/3 vote majority needed, according to Perez’s office.  So, the Governor wouldn’t be able to sign it.

The SB 1040 bill was amended and then referred to the Assembly Budget committee on August 27, where is failed to win passage before the final recess on August 31, so the measure is now dead.



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