[Latest Update from the California Escrow Association (CEA) – 6/19/2012]

Today SB 12 was heard in the Assembly Judiciary Committee. It did not move out of the committee for several reasons; among them, your letter writing and calling to your Assembly Members who serve on that Committee.

We expect SB 12 will be heard again in the Assembly Judiciary Committee next Tuesday morning. If it makes it out of the committee on its second attempt, it will then move to the Assembly Revenue & Taxation Committee.

Please:

1. Confirm your Assembly Member (click here to enter your address to determine this).

2. If your Assembly Member serves on either the Assembly Judiciary Committee or the Assembly Revenue & Taxation Committee, write the appropriate letter (details attached) and FAX (don’t mail) to your Assembly Member.

3. FAX or email (lexi@camgmt.com) a copy of your letter (Letter Template) to CEA.

4. CALL the Assembly Member’s office to request his or her “NO” vote on SB 12.

5. Contact your County tax collector, inform them about AB 12 and ask them to have their letters submitted immediately to both committees.

6. If you handle bulk sale escrow transactions and have a buyer, seller, attorney, or other client with a compelling story to tell about the escrow role in their bulk sale escrow transaction, please ask them to do the same (steps 1 through 4, above).

Calling your legislator: In most cases you will speak to whomever answers the phone; in some cases you may be transferred to another person. You will likely be asked your name, address, and phone number; it is possible but unlikely they will ask you for other specifics.

It’s EASY and FAST! Your call will probably go something like this:

You: Hi I’m ___. I’m a constituent of Assembly Member ___. I am calling to express my opposition to Senate Bill 12 and request his/her no vote when Senate Bill 12 is heard in the Assembly ___ (Judiciary, or Revenue and Taxation, as applicable) Committee.

Them: Thank you for calling and letting us know. Would you like to leave your address?

You: Yes, please (and give them your address and any other details they might ask for)

For general protocol and tips on writing your legislators, please click here for guidelines.

What is SB 12? (SB12 Bill)

SB 12 (Corbett) is a bill that seeks to repeal Division 6 of the Uniform Commercial Code, the Bulk Sales Law. According to the author’s office, bulk sales are so complicated that they result in buyers and sellers circumventing the bulk sale law to avoid the many steps needed for a buyer to avoid successor liability for the seller’s business obligations.

CEA is opposed to this bill because the while the bulk sale law may be complex, it provides for a reasoned, statutory process by which creditors, many themselves small businesses, as well as state and federal taxation agencies, can have their claims resolved in the escrow transaction rather than in the court system. Our members who do bulk sales transactions provide a very real public service, not the least of which is the remittance of sales and other taxes, ultimately benefiting all California taxpayers. CEA is working with the Escrow Institute and a coalition of others including beverage distributors.

[6/20/2012 Update: Another reason the bill didn’t move because they did not vote on it because there are amendments in the works which the committee said must be in place before they can vote on it. So the extra time was given to see if in fact these amendments can be agreed upon. The amendments appear designed to eliminate, one by one, the coalition of industries which have lined up to defeat this.]

Tagged on:             

Leave a Reply

Your email address will not be published. Required fields are marked *