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AB-1210 State Board of Equalization.(2017-2018)

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Date Published: 05/26/2017 02:00 PM
AB1210:v97#DOCUMENT

Amended  IN  Senate  May 26, 2017
Amended  IN  Assembly  March 29, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1210


Introduced by Assembly Member Ridley-Thomas
(Principal coauthor: Senator Galgiani)

February 17, 2017


An act to amend Section 19522 of the Revenue and Taxation Code, relating to taxation. add Sections 15630, 15631, 15632, 15633, 15634, and 15635 to the Government Code, relating to the State Board of Equalization.


LEGISLATIVE COUNSEL'S DIGEST


AB 1210, as amended, Ridley-Thomas. Franchise Tax Board: federal tax law changes: report. State Board of Equalization.
Existing constitutional law provides for the establishment of the State Board of Equalization and requires the board to consist of 5 voting members: the Controller and 4 members elected for 4-year terms at gubernatorial elections. Existing constitutional law prescribes the board’s duties, powers, and responsibilities, and jurisdiction over the review, equalization, or adjustment of a property tax assessment; the measurement of county assessment levels and adjustment of secured local assessment rolls; the assessment of pipelines, flumes, canals, ditches, and aqueducts lying within 2 or more counties and of property owned or used by regulated railway, telegraph, or telephone companies, car companies operating on railways in the state, and companies transmitting or selling gas or electricity; the assessment of taxes on insurers; and the assessment and collection of excise taxes on the manufacture, importation, and sale of alcoholic beverages in this state.
Existing statutory law prescribes the board’s powers and duties regarding the administration of various taxes and fees and generally makes the board responsible for administrative appeals relating to those taxes and fees and for the administrative appeals of state personal income taxes and corporation franchise and income taxes, which are administered by the Franchise Tax Board.
Existing statutory law authorizes the board to appoint its secretary, often referred to as the executive director, and to prescribe and enforce the secretary’s duties. Under existing statutory law, the secretary holds office during the pleasure of the board and receives compensation as prescribed by the board. The board’s legal department is under the direction of the chief counsel.
This bill would require each member of the board who has had an ex parte communication with respect to any person who is the subject of an adjudicatory proceeding to fully disclose the communication on the record of the proceeding prior to the board decision on that matter.
This bill would authorize the board to only select and terminate the secretary and the chief counsel. The bill would authorize a member of the board to only select and terminate the board member’s staff who are exempt from civil service. The bill would make all personnel matters other than those described and related administrative functions the responsibility of the secretary. The bill also would clarify other duties of the secretary and the members of the board, as specified.
The bill would require the board to submit quarterly reports to the Legislature summarizing the decision of each tax or fee appeal. The bill would require the secretary to submit a report to the Legislature summarizing the performance of work for or related to any member of the board by specified staff and the use of specified funding or other resources by a member of the board.
This bill would require the Department of Finance to establish a separate line item in the annual Budget Act for any annual appropriations to members of the State Board of Equalization.
This bill would state the intent of the Legislature to enact legislation that would create an Office of Inspector General within the State Board of Equalization.

Existing law requires the Franchise Tax Board to submit to the Legislature, and to make available to the public, on or before January 10 of each year, a report on all of the changes to the Internal Revenue Code enacted into law in the prior year, as provided. Existing law requires that, in the event that changes to the Internal Revenue Code are enacted into law after September 15 of any year, the Franchise Tax Board submit the report to the Legislature within 120 days after signature by the President of the United States.

This bill would instead require that the report be submitted on or before February 1 of each year and within 140 days after signature by the President of the United States of any law enacting changes to the Internal Revenue Code after September 15 of any year.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 It is the intent of the Legislature to enact legislation that would create an Office of Inspector General within the State Board of Equalization.

SEC. 2.

 Section 15630 is added to the Government Code, to read:

15630.
 Prior to rendering a decision in any adjudicatory proceeding, each member of the State Board of Equalization who has had an ex parte communication with respect to any person who is the subject of the adjudicatory proceeding, shall fully disclose the communication on the record of the proceeding.

SEC. 3.

 Section 15631 is added to the Government Code, to read:

15631.
 (a) (1) Notwithstanding any other law, the State Board of Equalization, as a board, may only select and terminate the secretary and the chief counsel.
(2) Notwithstanding any other law, a member of the State Board of Equalization may only select and terminate the board member’s staff who are exempt from civil service pursuant to Section 4 of Article VII of the California Constitution.
(b) Notwithstanding any other law, all personnel matters other than those described in subdivision (a) and related administrative functions shall be the responsibility of the secretary.

SEC. 4.

 Section 15632 is added to the Government Code, to read:

15632.
 (a) Notwithstanding any other law, the secretary shall be responsible for administering all programs of the State Board of Equalization and all other administrative functions and directing the daily operations of the board.
(b) The State Board of Equalization, as a board, shall be responsible for deciding appeals, adopting regulations, and establishing or issuing standards, criteria, procedures, notices, or guidelines with respect to those matters.

SEC. 5.

 Section 15633 is added to the Government Code, to read:

15633.
 (a) The State Board of Equalization shall submit quarterly reports to the Legislature summarizing the decision of each tax or fee appeal for that quarter.
(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795.

SEC. 6.

 Section 15634 is added to the Government Code, to read:

15634.
 (a) The secretary shall submit an annual report to the Legislature summarizing both of the following:
(1) The performance of any work for or related to any member of the State Board of Equalization by staff who are not exempt from civil service pursuant to Section 4 of Article VII of the California Constitution.
(2) The use of funding or other resources by a member of the State Board of Equalization not specifically budgeted for use by that member.
(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795.

SEC. 7.

 Section 15635 is added to the Government Code, to read:

15635.
 Notwithstanding any other law, the Department of Finance shall establish a separate line item in the annual Budget Act for any annual appropriations to members of the State Board of Equalization.

SECTION 1.Section 19522 of the Revenue and Taxation Code is amended to read:
19522.

(a)(1)(A)On or before the 1st of February each year, the Franchise Tax Board shall submit to the Legislature a report on all changes to the Internal Revenue Code enacted into law in the prior year. To the extent possible, the report shall contain an estimate of the revenue effect of conforming California law to each of those changes.

(B)In the event that changes to the Internal Revenue Code are enacted after September 15 of any year, the report described in subparagraph (A) shall be submitted to the Legislature within 140 days after signature by the President of the United States, rather than the 1st of February.

(2)The report required by this section shall be made available to the public.

(3)It is the intent of the Legislature that the policy committee of each house of the Legislature hold at least one public hearing on the report required by this section.

(b)For any introduced bill which proposes changes in any of the dates in Section 17024.5, the Franchise Tax Board shall prepare a complete analysis of the bill which describes all changes to state law which will automatically occur by reference to federal law as of the changed date. The Franchise Tax Board shall immediately update and supplement that analysis upon any amendment to the bill. That analysis shall be made available to the public and shall be submitted to the Legislature for publication in the daily journal of each house of the Legislature. The digest of the Legislative Counsel shall indicate that an analysis of the bill shall be prepared by the Franchise Tax Board and printed in the daily journal of each house of the Legislature.