I had the pleasure and pain of driving up to Sacramento yesterday to sit in on the hearing for AB 178, which I’ve talked about before putting California affiliates in jeopardy.  Lisa Picarille and I hopped into my car and made the drive up, and about 10 minutes away from our destination, we get the news that the hearing had been postponed.  The bill has been changed to a two year bill.  What does this mean, exactly?

Believe it or not, I couldn’t find a sufficient actual definition for what a two year bill is online, so I can only pass on what I was told in basic layman’s terms, which may be better anyway.  Basically what this means is that the hearing has been postponed until January, when it will be up again to be heard in hearings.  We were told by several seasoned lobbyists that if it’s not heard in January, this bill in this current incarnation will be dead.  However, the issue won’t necessarily go away.  We will need to keep an eye out for other bills to make sure language isn’t shoehorned into other bills that could affect affiliate livelihood and tax nexus, and we also have to pay attention in June when budgeting starts to make sure no strange budget items that could affect nexus show up.

This is a small victory and California affiliates can certainly breath easier for awhile, but it’s not over yet.  We’ve won the battle but the war rages on.  Of course, there’s a lot of blog coverage on the happenings of yesterday, so check out their points of view as well:

• Mr. Lewis Goes to Sacramento – David Lewis
• Calif. AB 178 on Hold for Now – Lisa Picarille
• California Hearing Postponed – that’s a good thing! – Rebecca Madigan
• No Hearing for California AB 178 – Shawn Collins
• Commission Junction’s Internet Retail Tax News

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