A weekly roundup of business-related bills, upcoming...
A weekly roundup of business-related bills, upcoming legislative issues, regulatory news and other developments of local interest.
ATMs Cash In With Tax-Exempt Status
A veritable gold mine of fees and surcharges, the automated teller machine will become even more lucrative for bankers now that state regulators have declared most of the machines tax-exempt.
The Board of Equalization on Tuesday voted 4 to 1 to classify ATMs that protrude through the outside walls of banks and other buildings as personal property not unlike a desktop computer. California banks do not have to pay personal property taxes to local governments.
State officials projected the loss of tax revenue from the 10,000 ATMs affected at $1.5 million annually, a figure even banking lobbyists described as conservative. A delegate from the Los Angeles County Assessor’s Office argued that the change would cost L.A. County alone at least $1.8 million a year.
Banks and thrifts sought the change as ATMs proliferate and the aging network is replaced with more sophisticated models that could face higher tax assessments.
Consumer advocates, who have complained about ATM fees, say ATM profits nationwide were $2.2 billion in 1995, including labor savings. Lawmakers in Sacramento have introduced legislation that would regulate the machines and the fees banks charge for their use.
CALENDAR / Session on Pot Law
Everyone from President Clinton to the editors at the New England Journal of Medicine has weighed in on Proposition 215, the voter-approved initiative that lets California doctors prescribe marijuana.
On Saturday, the state agency responsible for regulating and disciplining doctors, the California Medical Board, takes up the issue for the first time.
The board will accept public comment on how it should carry out the law and what position it should take with doctors who prescribe marijuana use.
The meeting takes place at the following time and location:
* Saturday, 8 a.m.
Crowne Plaza Los Angeles Airport Hotel
5985 W. Century Blvd.
Westchester
HOT BILLS
* Business Fee Hike (SB 248)
Would give counties the option to charge an additional $10 fee for fictitious business name filings. The extra money would go to counties to help fight business fraud and unfair business practices. The bill is sponsored by the Los Angeles County Department of Consumer Affairs. Opposition is expected from business advocates. Author: Diane Watson (D-Los Angeles)
* Medical Audits (AB 219)
Would consolidate the parts of three state agencies that regulate medical practices: the state Medical Board, the Department of Corporations and the Department of Health Services. The bill seeks to reduce the number of audits performed at physicians’ offices by state agencies. The bill is sponsored by the California Medical Assn. Opposition is likely from the agencies that would be affected. Author: Barbara Alby (R-Sacramento)
* Insurance Agent Fee Cuts (SB 237)
Would eliminate the $16 license fee required of insurance agents every time they update the state about companies they represent. This bill will draw support from insurance agents and their lobbyists. Opposition could come from consumer groups since industry fees help fund the state Department of Insurance and its regulatory and consumer protection efforts. Author: Ross Johnson (R-Irvine)
Please send comments about Capitol Matters via e-mail to cyndia.zwahlen@latimes.com
