BILL NUMBER: SB 560INTRODUCED BILL TEXT INTRODUCED BY Senator Anderson FEBRUARY 22, 2013 An act relating to disaster relief. LEGISLATIVE COUNSEL'S DIGEST SB 560, as introduced, Anderson. Disaster relief. The California Emergency Services Act specifies those events, including conditions of disaster or of extreme peril to the safety of persons and property within the state caused by such conditions as fire, flood, storm, or earthquake, constituting a state emergency for purposes of the act and provides for specified activities in preparation or response to those events. This bill would state the Legislature's intent to enact legislation that would facilitate rapid response and aid by out-of-state businesses to state declared disasters by providing that an out-of-state business that conducts operations within the state for purposes of performing work or services related to a declared state disaster or emergency should not be considered to have established a level of presence that would require that business or its out-of-state employees to be subject to any state and local licensing or registration requirements or to register, file, and remit state or local taxes and fees, such as state corporation taxes or personal income taxes, unemployment insurance, sales and use taxes on equipment used for performing the work or service, or state or local occupational licensing fees. Vote: majority. Appropriation: no. Fiscal committee: no. 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) During times of storm, flood, fire, earthquake, hurricane, or other disaster or emergency, many companies bring in resources and personnel from other states throughout the United States on a temporary basis to expedite the often enormous and overwhelming task of cleaning up, restoring and repairing damaged buildings, equipment, and property, or even deploying or building new replacement facilities in the state. (b) This may involve the need for out-of-state companies, including out-of-state affiliates of companies based in the state to bring in resources, property or personnel that previously have had no connection to the state, to perform activity in the state including, but not limited to, repairing, renovating, installing, building, rendering services, or other business activities and for which personnel may be located in the state for extended periods of time to perform such activities. (c) During such time of operating in the state on a temporary basis solely for purposes of helping the state recover from the disaster or emergency, these companies and individual employees should not be burdened by any requirements for business and employee taxes as a result of such activities in the state for a temporary period. (d) The state's nexus and residency thresholds are intended for businesses and individuals in the state as part of the conduct of regular business operations or who intend to reside in the state and should not be directed at companies and individuals coming into the state on a temporary basis to provide help and assistance in response to a declared state disaster or emergency. (e) To ensure that companies may focus on quick response to the needs of the state and its citizens during a declared state disaster or emergency it is appropriate for the Legislature to deem that such activity for a reasonable period of time during and after the disaster or emergency for repairing and restoration of the often devastating damage to property and infrastructure in the state shall not establish presence, residency, nor doing business in the state nor any other criteria for purposes of state and local taxes, licensing, and regulatory requirements. SEC. 2. It is the intent of the Legislature to enact legislation that would facilitate rapid response and aid by out-of-state businesses to state declared disasters by providing that an out-of-state business that conducts operations within the state for purposes of performing work or services related to a declared state disaster or emergency should not be considered to have established a level of presence that would require that business or its out-of-state employees to be subject to any state and local licensing or registration requirements or to register, file, and remit state or local taxes and fees, such as state corporation taxes or personal income taxes, unemployment insurance, sales and use taxes on equipment used for performing the work or service, or state or local occupational licensing fees.