For those state vendors who have been given warrants rather than checks from the state, the Board of Equalization will vote at our July 21st meeting whether to accept the warrants from these vendors for their tax obligation on sales to the state. I have received a legal opinion that it is permissible for the Board to do so. However, that opinion states that if the warrant is greater than the tax liability, then the Board cannot issue refunds until the warrant has reached its maturity date.
It is important for the BOE to accept these registered warrants as a sign of good faith to the people of California, and those who receive these IOUs from the Controller that they really do have value.