Section 10295.1 Of Article 2. Approval Of Contracts From California Public Contract Code >> Division 2. >> Part 2. >> Chapter 2. >> Article 2.
10295.1
. (a) A state department or agency shall not contract for
the purchase of tangible personal property from a vendor, contractor,
or an affiliate of a vendor or contractor, unless that vendor,
contractor, and all of its affiliates that make sales for delivery
into California are holders of a California seller's permit issued
pursuant to Article 2 (commencing with Section 6066) of Chapter 2 of
Part 1 of Division 2 of the Revenue and Taxation Code, or are holders
of a certificate of registration issued pursuant to Section 6226 of
the Revenue and Taxation Code. A vendor or contractor that sells
tangible personal property to a state department or agency, and each
affiliate of that vendor or contractor that makes sales for delivery
into California, shall be regarded as a "retailer engaged in business
in this state," and shall be required to collect the California
sales or use tax on all its sales into the state in accordance with
Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code.
(b) Beginning on and after January 1, 2004, each vendor,
contractor, or affiliate of a vendor or contractor that is offered a
contract to do business with a state department or state agency shall
submit to that state department or agency a copy, as applicable, of
that retailer's seller's permit or certificate of registration, and a
copy of each of the retailer's applicable affiliate's seller's
permit or certificate of registration, as described in subdivision
(a). This subdivision does not apply to a credit card purchase of
goods of two thousand five hundred dollars ($2,500) or less. The
total amount of exemption authorized herein shall not exceed seven
thousand five hundred dollars ($7,500) per year for each company from
which a state agency is purchasing goods by credit card. It shall be
the responsibility of each state agency to monitor the use of this
exemption and adhere to these restrictions on these purchases.
(c) A state department or state agency is exempted from the
provisions of subdivision (a) if the executive director of that state
department or agency, or his or her designee, makes a written
finding that the contract is necessary to meet a compelling state
interest.
(d) For the purposes of this section:
(1) "Affiliate of the vendor or contractor" means any person or
entity that is controlled by, or is under common control of, a vendor
or contractor through stock ownership or any other affiliation.
(2) "Compelling state interest" includes, but is not necessarily
limited to, the following:
(A) Ensuring the provision of essential services.
(B) Ensuring the public health, safety, and welfare.
(C) Responding to an emergency, as defined in Section 1102.
(3) "State department or agency" means every state office,
department, division, bureau, board, and commission, but does not
include the University of California, the California State
University, the Legislature, the courts, and any agency in the
judicial branch of government.