Today's Law As Amended


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AB-2895 Tax administration.(2023-2024)



As Amends the Law Today


SECTION 1.

 Section 12803.2 of the Government Code is amended to read:

12803.2.
 (a) The Government Operations Agency shall consist of all of the following:
(1) The Office of Administrative Law.
(2) The Public Employees’ Retirement System.
(3) The State Teachers’ Retirement System.
(4) The State Personnel Board.
(5) The California Victim Compensation Board.
(6) The Department of General Services.
(7) The Department of Technology.
(8) The Franchise Tax Board.
(9) The Department of Human Resources.
(10) The California Department of Tax and Fee Administration.
(11) The Office of Data and Innovation, effective July 1, 2023.
(12) The Office of Tax Appeals.
(b) The Government Operations Agency shall include the Department of FISCal upon the acceptance of the Financial Information System for California (FISCal) by the state, as determined by the Director of Finance, pursuant to Section 11890.
(c) The Government Operations Agency shall be governed by the Secretary of Government Operations pursuant to Section 12801. However, the Director of Human Resources shall report directly to the Governor on issues relating to labor relations.
(d) The Governor, upon the recommendation of the Secretary of Government Operations, may appoint up to three deputies for the secretary.

SEC. 2.

 Section 15570 of the Government Code is amended to read:

15570.
 (a) There shall be established within state government, in the Government Operations Agency, the California Department of Tax and Fee Administration. The department’s headquarters shall be in Sacramento.
(b) (1)  The department is under the control of a director. The Governor shall appoint the director, a chief deputy director, and a chief counsel, and these appointees shall hold office at the pleasure of the Governor. The appointment of the director shall be subject to confirmation by the Senate. the California Department of Tax and Fee Administration Board, which is hereby established. The board shall be composed of three members consisting of the Controller, the Director of Finance, and the Chairperson of the State Board of Equalization. The CDTFA Board, with the consent and approval of two-thirds of the membership of the Senate, shall appoint a director, who shall be a civil executive officer and shall perform those duties as are delegated by the CDTFA Board. The director may be removed by a two-thirds vote of the CDTFA Board. 
(2) Any power granted to, or duty imposed on, the CDTFA Board may be exercised or performed by any officer or employee of the CDTFA Board as authorized by the CDTFA Board unless it is expressly provided that the power or duty shall be exercised only by the CDTFA Board itself. Notwithstanding any other law, if a person requests in writing to the director or the CDTFA Board that a specific proposed regulation be considered by the CDTFA Board itself, then any delegated authority to an officer or employee of the CDTFA Board to adopt that regulation is rescinded.
(c) The director shall be solely responsible for selecting persons for career executive assignment positions and other noncivil service managers for the department.

SEC. 3.

 Section 15570.20 of the Government Code is amended to read:

15570.20.
 For the purposes of this part, the following terms shall have the following meanings:
(a) “Board” means the State Board of Equalization.
(b) “CDTFA Board” means the California Department of Tax and Fee Administration Board.
(b) (c)  “Department” means the California Department of Tax and Fee Administration.

SEC. 4.

 Section 15670 of the Government Code is amended to read:

15670.
 (a) There shall be established in state government the  government, within the Government Operations Agency, the  Office of Tax Appeals. The office headquarters shall be in Sacramento. 
(b) (1) The office is under the control of a director. The Governor shall appoint the director, chief deputy director, and chief counsel of the office. The appointment of the director is subject to confirmation by the Senate. the Office of Tax Appeals Board, which is hereby established. The board shall be composed of three members consisting of the Controller, the Director of Finance, and the Chairperson of the State Board of Equalization. The board, with the consent and approval of two-thirds of the membership of the Senate, shall appoint a director, who shall be a civil executive officer and shall perform those duties as are delegated by the CDTFA Board. The director may be removed by a two-thirds vote of the board. 
(2) The director shall administer and direct the day-to-day operations of the office, including, but not limited to, ensuring that each hearing office is sufficiently staffed and that appeals hearings are heard and resolved in a timely and efficient manner. The board and the  director shall not direct, oversee, supervise, or be otherwise involved in the decisionmaking process of the tax appeals panels.
(c) Within the office, there shall be tax appeals panels. Each tax appeals panel shall consist of three members designated by the director of the office. Each member shall be a person who satisfies all of the following criteria:
(1) The person agrees to adhere to the ethics standards adopted by the office pursuant to subdivision (d).
(2) The person has knowledge and experience with regard to the administration and operation of the tax and fee laws of the United States and California.
(3) Either of the following is true:
(A) The person maintained an active membership in the State Bar of California for at least five years immediately preceding designation to a tax appeals panel and meets the qualifications for a state employee classification as an administrative law judge.
(B) The person is employed under either of the following state employee classifications:
(i) The Business Taxes Specialist, California Department of Tax and Fee Administration series.
(ii) The Program Specialist, Franchise Tax Board series.
(d) The office shall adopt by rule, pursuant to Section 15679, ethics standards, including rules governing conflicts of interest and ex parte communication. The office shall, to the extent applicable, model the rules upon the Code of Judicial Ethics adopted by the Supreme Court pursuant to subdivision (m) of Section 18 of Article VI of the California Constitution.
(e) The hiring of members for tax appeals panels shall be conducted by the office in compliance with state civil service requirements.
(f) It is the intent of the Legislature that the changes made to this section by the act adding this subdivision authorizing the office to hire specified tax specialists to serve as members of tax appeals panels shall be implemented by the office in a manner that will not directly cause a reduction in the number of administrative law judges currently employed by the office.