Bill Text: CA AB2415 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Property tax agents.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB2415 Detail]

Download: California-2013-AB2415-Amended.html

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BILL NUMBER: AB 2415	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 25, 2014
	AMENDED IN SENATE  JUNE 12, 2014
	AMENDED IN ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  APRIL 3, 2014

INTRODUCED BY   Assembly Member Ting
   (Principal coauthor: Assembly Member Cooley)
   (Coauthors: Assembly Members Bocanegra and Dababneh)

                        FEBRUARY 21, 2014

   An act to add Chapter 14.5 (commencing with Section 22260) to
Division 8 of the Business and Professions Code, relating to property
tax agents.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2415, as amended, Ting. Property tax agents.
   Existing law requires every assessor to assess all property
subject to general property taxation at its full value and to prepare
an assessment roll in which all property within the county that it
is the assessor's duty to assess is required to be listed. Existing
law requires a county board of equalization or an assessment appeals
board to equalize the assessment of property on the local roll for
the purpose of taxation. Existing law authorizes a taxpayer, with
respect to each assessment year, to file an application for a
reduction in an assessment, as provided, with the county board, which
is the county board of supervisors meeting as a county board of
equalization or an assessment appeals board.
   This bill would, commencing April 1, 2016, prohibit a Property Tax
Agent, defined as any individual who is employed, under contract, or
otherwise receives compensation, from communicating directly or
indirectly with any county official for the purpose of influencing
official action relating to the establishment of a taxable value for
any property subject to taxation, including representing a taxpayer
before a county official, without first being registered and issued a
registration number by the Secretary of State. The bill would
provide that a violation of these provisions is a misdemeanor. The
bill would require a Property Tax Agent to file, under penalty of
perjury, with the Secretary of State an application for registration
that includes specified information and a registration fee, as
specified. Because this bill would create new crimes, this bill would
impose a state-mandated local program.
   This bill would make the registration subject to biennial renewal.
This bill would require the Secretary of State to issue a cease and
desist order to a person who is subject to these provisions if that
person has been convicted of a felony or certain other criminal
offenses or has had his or her professional license, as specified,
revoked; to a Property Tax Agent who engages in prohibited
activities, and to  a person   an individual
 who acts as a Property Tax Agent without registering, and to
provide a copy of the notice to the Attorney General.
   This bill would require the Secretary of State to develop a list
of registered  property tax agents,   Property
Tax Agents,  and a list of  registered property tax
agents   Property Tax Agents  who  , after
exhausting their administrative remedies,  have been issued a
cease and desist order, fined or convicted for committing specified
violations, or whose license  , as specified,  has been
revoked, and to make those lists publicly available on its Internet
Web site, as specified. The bill would provide that a Property Tax
Agent is subject to disqualification for engaging in specified
 activities, including, but not limited to, representing that
the Property Tax Agent can control the official action of any county
official and making a gift, as defined, to any county official. The
bill   activities and  would authorize the
imposition of civil penalties not to exceed $1,500 for each violation
of these provisions.
   This bill would require the Attorney General, District Attorney,
or City Attorney, as applicable, to notify the Secretary of State of
any conviction of, or of any penalty imposed against, a Property Tax
Agent pursuant to these provisions. By imposing new duties on city
attorneys' offices, this bill would impose a  state-mandate
  state-mandated  local program.
   This bill would preempt and supersede all local ordinances
regarding the registration of any individual who communicates
directly or indirectly with any county official for the purpose of
influencing official action regarding a property tax assessment.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 14.5 (commencing with Section 22260) is added
to Division 8 of the Business and Professions Code, to read:
      CHAPTER 14.5.  PROPERTY TAX AGENTS


   22260.  The following definitions apply for purposes of this
chapter:
   (a) "County official" means the county assessor, an assessment
appeals board member, an assessment hearing officer, and any other
county employee within those offices whose duties are not primarily
clerical or manual.
   (b) "Gift" shall be defined as set forth in the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000) of the
Government Code) and the regulations adopted thereunder.
   (c) (1) "Influencing official action" means representing a
taxpayer as an agent in connection with any matter before any county
official by promoting, supporting, influencing, seeking modification
of, opposing, or seeking delay of any official action by any means.
   (2) The following shall not be considered to be influencing
official action:
   (A) The filing or submitting of required county forms for
compliance purposes and communication related to these filings shall
not be considered to be influencing official action.
   (B) The act of contacting, or being contacted by, a county
official solely for the purpose of ascertaining the current status of
any of the following:
   (i) A property's taxable value.
   (ii) A pending property tax refund.
   (iii) A pending property tax exemption application.
   (d) "Official action" means establishing a taxable value for any
property subject to property taxation, including initial value,
declines in value, corrections to values and any other changes in the
taxable value set; completing an assessment roll showing the
assessed values of all property; applying all legal exemptions to
assessments; issuing refunds; and deciding all property assessment
disputes between taxpayers and a county official.
   (e) "Public official" and "public employee" mean any government
official or employee of any state or local government agency.
   (f) "Property Tax Agent" means any individual who is employed,
under contract, or otherwise receives compensation to communicate
directly, or through agents, employees, or subcontractors, with any
county official for the purpose of influencing official action. A
Property Tax Agent shall not include:
   (1) An elected or appointed public official or public employee
when acting in his or her official capacity.
   (2) A person representing any of the following:
   (A) Himself or herself.
   (B) An immediate family member.
   (C) An entity of which the person is a partner or owner of 10
percent or more of the value of the entity.
   (3) An in-house tax professional or in-house employee representing
his or her employer by influencing official action.
   (4) A person who, accompanying the taxpayer or a registered
Property Tax Agent, only provides their expert opinion to a county
official.
   22260.1.  (a) (1) Each Property Tax Agent shall file, under
penalty of perjury, with the Secretary of State an application for a
registration containing the following information:
   (A) The Property Tax Agent's full name, business address, business
telephone number, business email address, date of birth, and
previous Property Tax Agent number issued by the Secretary of State,
if applicable.
   (B) The name of the Property Tax Agent's employing tax agent firm,
if applicable.
   (C) A statement affirming that the person has not:
   (i) Been convicted of any felony under state or federal tax laws.
   (ii) Been convicted of any other criminal offense involving
dishonesty, breach of trust, or moral turpitude.
   (iii) Had his or her professional license to practice as an
attorney, certified public accountant, public accountant, or actuary
revoked by any duly constituted authority of any state, territory, or
possession of the United States, including a commonwealth, or the
District of Columbia, any court of record, or any agency, body, or
board.
   (D) A statement that the Property Tax Agent has read and
understands the duties and prohibitions contained in Section 22260.6.

   (2) Intentionally providing false information on the application
for registration shall disqualify an individual from registration as
a Property Tax Agent and subject a person who was previously
registered as a Property Tax Agent to the issuance of a cease and
desist order by the Secretary of State.
   (3) (A) A Property Tax Agent shall also pay the Secretary of State
a registration fee in the amount of two hundred fifty dollars ($250)
or a fee not to exceed the amount necessary to administer this
chapter.
   (B) The Secretary of State may cancel the registration of a
Property Tax Agent if a check or other remittance accepted as payment
for the registration or reissuance of a registration is not paid
upon presentation to the financial institution upon which the check
or other remittance was drawn. Upon receiving written notification
that the item presented for payment has not been honored for payment,
the Secretary of State shall first issue a written notice of the
applicability of this section to the Property Tax Agent or the person
who submitted the payment instrument. Thereafter, if the amount is
not paid by a cashier's check or the equivalent in certified funds,
the Secretary of State shall issue a second written notice of
cancellation and the cancellation shall thereupon be effective. The
second written notice shall be issued at least 20 days after the
first notice, and no more than 90 days after the date of the issuance
or reissuance of the registration number.
   (b) If the requirements of subdivision (a) are satisfied, the
Secretary of State shall issue a Property Tax Agent registration
number to the Property Tax Agent.
   (c) Beginning on January 1, 2016, the Secretary of State shall
accept applications for a registration from Property Tax Agents.
   (d) Beginning April 1, 2016, a Property Tax Agent shall not
represent taxpayers before a county official without first being
registered and issued a registration number pursuant to this section.
The Secretary of State shall provide the Property Tax Agent the same
registration number should that Property Tax Agent reregister at a
subsequent date.
   (e) A registration issued pursuant to this section shall expire
two years from its date of issuance unless and until that person
terminates the registration or until that person no longer qualifies
as a registrant.
   (f) The Secretary of State, at least 30 days but no more than 90
days, prior to the expiration of the registration, shall send to the
Property Tax Agent a notice of the registration's expiration.
   (g) Registration fees collected pursuant to this chapter shall be
deposited in the Secretary of State's Business Fees Fund established
in Section 12176 of the Government Code. 
   22260.2.  A county supervisor or a member of a county assessment
appeals board shall not act as a Property Tax Agent in the county in
which they currently serve as a county supervisor or as a member of a
county assessment appeals board. 
   22260.3.  (a) Within 10 days of any change in any of the
registration information submitted pursuant to Section 22260.1, a
Property Tax Agent shall file updated  accurate 
registration information with the Secretary of State.
   (b) When a Property Tax Agent ceases all activities related to
influencing official action, this fact shall be reported to the
Secretary of State.
   (c) It shall be a misdemeanor for any person to act as a Property
Tax Agent if that person intentionally provided false information
relating to the statements required by subparagraph (C) of paragraph
(1) of subdivision (a) of Section 22260.1 for registration, if that
person is not registered as a Property Tax Agent pursuant to Section
 22260.1, or if that person was previously registered as a
Property Tax Agent pursuant to Section 22260.1 but that person is no
longer registered as a Property Tax Agent.   22260.1.

   22260.4.  This chapter shall not be construed to prohibit a county
from, by ordinance, enacting Property Tax Agent reporting
requirements for campaign contributions to elected officials in that
county or prohibiting such campaign contributions.
   22260.5.  (a) The Secretary of State shall develop a list of
registered Property Tax Agents and make that list available to the
public on its Internet Web site.
   (b) The Secretary of State shall develop a list of registered
Property Tax Agents, who after exhausting their administrative
remedies, have been issued a cease and desist order, fined for or
convicted of a violation of this chapter, or whose license as an
attorney, certified public accountant, public accountant, or actuary
has been revoked, and post the names and business addresses of those
Property Tax Agents on the secretary's Internet Web site.
   22260.6.  A property tax agent shall be subject to
disqualification for engaging in any of the following activities:
   (a) Use, or participate in the use of, any public communication or
private solicitation containing false, misleading, fraudulent, or
deceptive representations, or intimate that the Property Tax Agent is
able to improperly obtain special consideration or action from the
county of any county official.
   (b) Act as or attempt to act as, or claim to be the Property Tax
Agent of a taxpayer, or represent a taxpayer before a county or any
county official, without the authorization of that taxpayer.
   (c) Violate Section 17533.6 or 17537.9 of the Business and
Professions Code.
   (d) Knowingly aid and abet another person to practice as a
Property Tax Agent before the county or a county official during a
period when the other person  has been deregistered as a
Property Tax Agent or otherwise is ineligible to lawfully act
  is not currently registered by the Secretary of State
 as a Property Tax Agent.
   (e) Directly or indirectly attempt to influence, or offer or agree
to attempt to influence, the official action of any county official
by the use of threats, false accusations, duress, or coercion, by the
offer of any special inducement or promise of an advantage or by
bestowing any gift, campaign contribution, favor, or thing of value.
   (f) Do anything with the purpose of placing any county official
under personal obligation to the Property Tax Agent or another.
   (g) Represent, either directly or indirectly, that the Property
Tax Agent can control the official action of any county official.
   (h) Make a gift or gifts of any monetary value to a county
official. A Property Tax Agent shall not act as an agent or
intermediary in the making of any gift or arrange for the making of
any gift from any other person. 
   (i) Act as a Property Tax Agent in a county in which he or she
serves as a county supervisor as a member of the assessment appeals
board.  
   (j) Make a campaign contribution to a candidate for office of
county assessor or member of the State Board of Equalization. 
   22260.7.  (a) The Secretary of State shall issue a cease and
desist order to a person subject to the provisions of this chapter
who had his or her professional license to practice as an attorney,
certified public accountant, public accountant, or actuary revoked,
or has been convicted of any felony under state or federal tax laws,
or has been convicted of any other criminal offense involving
dishonesty, breach of trust, or moral turpitude, and shall provide a
copy of the order to the Attorney General. Unless the person has been
punished by imposition of a civil penalty pursuant to Section
22260.8, prior to issuing a cease and desist order to a person
pursuant to this subdivision, the Secretary of State shall provide
the person with written notice and an opportunity to demonstrate that
grounds for  disqualification   the cease and
desist order  do not exist.
   (b) The Secretary of State shall issue a cease and desist order to
a Property Tax Agent who commits any of the acts listed in Section
22260.6, and shall provide a copy of the order to the Attorney
General. Unless the person has been punished by imposition of a civil
penalty pursuant to Section 22260.8, prior to issuing a cease and
desist order to a person pursuant to this subdivision, the Secretary
of State shall provide the person with written notice and an
opportunity to demonstrate that grounds for  disqualification
  the cease and desist order  do not exist.
   (c) The Secretary of State shall issue a cease and desist order to
an individual who is employed, under contract, or otherwise receives
compensation to communicate directly, or through agents, employees,
or subcontractors, with any county official for the purpose of
influencing official action who has not registered as a Property Tax
Agent pursuant to Section 22260.1, and shall provide a copy of the
order to the Attorney General.
   22260.8.  (a) A person who violates this chapter shall be subject
to a civil penalty not to exceed one thousand five hundred dollars
($1,500) in a civil action for each violation brought in the name of
the people of the State of California by the Attorney General, a
district attorney, or a city attorney.
   (b) The court shall impose a civil penalty for each violation of
this chapter. In assessing the amount of the civil penalty, the court
may consider relevant circumstances presented, including, but not
limited to, the following:
   (1) The nature and seriousness of the misconduct.
   (2) The number of violations.
   (3) The persistence of the misconduct.
   (4) The length of time over which the misconduct occurred.
   (5) The willfulness of the defendant's misconduct.
   (6) The defendant's assets, liabilities, and net worth.
   (c) If the Attorney General brings the action, one-half of the
civil penalty collected shall be paid to the treasurer of the county
in which the judgment was entered  for distribution to the county
general fund  , and one-half to the  state's  General
Fund. If a district attorney brings the action, the civil penalty
collected shall be paid to the treasurer of the county in which the
judgment was entered  for distribution to the county general fund
 . If a city attorney brings the action, one-half of the civil
penalty collected shall be paid to the treasurer of the city in which
the judgment was entered  for distribution to the city's general
fund  , and one-half to the treasurer of the county in which
the judgment was entered  for distribution to the county general
fund  .
   (d) Notwithstanding subdivision (a), a penalty shall not be
imposed if the first noncompliance with, or violation of, this
chapter is cured within 30 days of the date on which the Secretary of
State issues a cease and desist order pursuant to Section 22260.7 to
a person subject to this chapter.
   22260.9.  The Attorney General, District Attorney, or City
Attorney shall notify the Secretary of State of both of the
following:
   (a) Any conviction of a Property Tax Agent under Section 22260.3.
The prosecuting office shall make this notification.
   (b) Any civil penalty imposed against a Property Tax Agent
pursuant to Section 22260.8. The office bringing the action shall
make this notification.
   22260.11.  The provisions of this chapter shall preempt and
supersede all local ordinances regarding the registration of any
individual who communicates directly or indirectly with any county
official for the purpose of influencing official action regarding a
property tax assessment.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
   However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.