Jul 7, 2009 12:56 pm US/Pacific
Bill Would Force State To Accept Own IOUs
SACRAMENTO (AP) ―
A bill that would force the state to accept its own IOUs as payment has passed an Assembly committee.
The Assembly Business and Professions Committee unanimously approved Assembly Bill 1506 today. The bill is aimed at alleviating some of the burden placed on businesses and people receiving IOUs from the state by allowing them to pay anything owed to the state with their IOU.
A statement released by by the bill's author Assemblyman Joel Anderson said the committee also heard from Dr. Gloria Freeman, President of Staff USA, Inc., whose company has already laid off 5 employees in preparation for receiving IOUs rather than payment for state contracts.
"AB 1506 would allow us to use the IOUs we will receive to pay our payroll taxes, DMV fees, corporate taxes and other obligations to the state," said Dr. Freeman. "For many businesses like mine, this bill could be the difference between life and death."
The bill still must be approved by the entire Assembly and Senate.
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