SB 1125 Summary

• Prohibits local government entities (cities, counties, school districts, etc.) from contracting with vendors or contractors unless they hold a California seller's permit or certificate of registration, effective January 1, 2013.

• Requires vendors and contractors to submit copies of their seller's permits or certificates of registration to local government entities before being awarded contracts.

• Exempts credit card purchases of $2,500 or less per transaction, with an annual cap of $7,500 per company per local government entity.

• Allows local government entities to exempt contracts from these requirements if they make a written finding that the contract is necessary for a compelling local government interest (essential services, public health/safety, or emergency response), but limits such exemptions to 5 percent of total contract purchases per fiscal year.

• Provides that if the Commission on State Mandates determines this bill creates state-mandated costs for local agencies and school districts, reimbursement shall be made pursuant to existing statutory procedures.