If Sacramento issues IOUs again this year because it lacks a budget, it ought to accept those same promise-to-pay notes from Californians as payment for their state taxes and fees, a San Diego County lawmaker says.

Assemblyman Joel Anderson, R-La Mesa, recently finished steering a bill through the Legislature to force the state to do just that: Accept its own IOUs.

It's only fair, Anderson said in a telephone interview.

"How can you tell someone, 'I'm going to owe you $100,' and then turn around and say, 'By the way, you need to pay me $10?'" he asked. "If there was ever a case for pitchforks coming to Sacramento, I can't think of a better one."

However, it would appear chances are slim his Assembly Bill 1506 will become law. Gov. Arnold Schwarzenegger hasn't taken a position on the legislation, said the governor's spokesman, Matt Connelly. But the governor's Department of Finance opposes it.

"We all agree that if the controller is forced to the point of issuing IOUs, that is a bad outcome for everyone ---- for recipients (of the IOUs) and for the state," said H.D. Palmer, a department spokesman. "But if the controller is forced to take this extraordinary step of issuing IOUs, then if you turn back around and allow bills to be paid with IOUs you are undercutting the reason you are issuing them in the first place."

Palmer said the state's cash would be further depleted.

"And you might have to issue more IOUs," he said.

State Controller John Chiang, however, backs the bill, which soared through the Legislature on unanimous votes.

Yes, letting taxpayers and vendors use IOUs to make payments could pull more cash out of state coffers, said Jacob Roper, a spokesman for the controller's office. But Roper said Chiang supports the legislation anyway, because "this is an issue of fairness."

Chiang has warned that the state will run out of cash soon if lawmakers don't pass a budget, and will find itself in a position similar to last year's.

In 2009, a tardy budget triggered the issuance of 450,000 IOUs to vendors who do business with the state, college students who receive financial aid, corporate and personal taxpayers who were entitled to refunds, and counties that receive funds for mental health and alcohol rehabilitation programs.

Those promises to pay totaled $2.6 billion.

"That was the first time the state had issued IOUs in 17 years, and only the second time since the Great Depression," Roper said.

Anderson, who is the Republican Party's nominee for a state Senate seat from Southwest Riverside County and North San Diego County, said the budget deadlock in Sacramento could trigger another round of IOUs.

And Anderson said it is time for a law that protects taxpayers and vendors in such cases.

He said IOUs are particularly hard on small businesses that contract with the state and get large chunks of their money from Sacramento.

"We have all these companies that are providing quality products and services," Anderson said. "They've always played by the rules. They've always paid their fees and taxes on time. And so what I want to do is to create an avenue for them to continue to play by the rules and pay their fees and taxes on time. We don't want to force them out of business because they can't pay their payroll taxes."

The bill would take effect immediately, and apply if IOUs are issued this fall.

Anderson said he is optimistic Schwarzenegger will make the bill law.

"If the governor doesn't sign the bill, he will effectively tell investors that we are such a deadbeat state that we don't trust our own bad paper," he said.

And if the governor doesn't, Anderson said he will introduce legislation next year to waive vendors' obligation to pay state taxes when IOUs are issued.

"This gets much messier, if this bill isn't signed into law," he said.

Call staff writer Dave Downey at 951-676-4315, ext. 2623.