BILL NUMBER: AB 2415 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 21, 2014
AMENDED IN SENATE AUGUST 5, 2014
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, and to amend Section
12195 of the Government 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 Property Tax Agent if that person has been
convicted of a felony misdemeanor or felony,
as specified, or certain other criminal offenses or has had his
or her professional license, as specified, revoked, 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, and a list of 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 suspension or termination of his or her
registration for engaging in specified 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 or change in eligibility imposed
against, a Property Tax Agent pursuant to these provisions. By
imposing new duties on city attorneys' offices, this bill would
impose a 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 preparation, filing, or submitting of a form required by a
county official for compliance purposes and communication with a
county official related to factual information set forth, or required
to be set forth, in that form, including communication occurring as
a result of a statutory audit of that form by a county official.
(B) The act of contacting, or being contacted by, a county
official solely for the purpose of ascertaining the current status
of, or the methodology used by the county assessor in establishing,
any of the following:
(i) A property's taxable value.
(ii) A pending property tax refund.
(iii) A pending property tax transfer of base year value,
exemption application, or exclusion application.
(C) If, while engaging in the activities described in subparagraph
(A) or (B), an individual becomes engaged in influencing official
action, the individual shall have 10 business days to file an
application for registration as a Property Tax Agent.
(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 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 his or her 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 within the
past 10 years :
(i) Been convicted of any felony under state or federal tax laws
or convicted of any misdemeanor under state or federal tax laws
applicable to acts or omissions occurring during his or her
representation of any client .
(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) Providing false information on the application for
registration shall disqualify an individual from registration as a
Property Tax Agent and subject the Property Tax Agent to the issuance
of a cease and desist order by the Secretary of State.
(3) (A) A Property Tax Agent shall pay the Secretary of State a
registration fee in the amount prescribed by subdivision (f)
(e) of Section 12195 of the Government Code.
The fee shall be deposited in the Secretary of State's Business Fees
Fund established in Section 12176 of the Government Code.
(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 Property
Tax Agent terminates the registration, the Secretary of State issues
a cease and desist order, or a court suspends or terminates the
person's eligibility to register.
(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.
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 provided false information relating to the
statements required by subparagraph (C) of paragraph (1) of
subdivision (a) of Section 22260.1 at the time of his or her
registration, or if that person is not registered as a Property Tax
Agent pursuant to Section 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 shall post the names and business addresses of
those Property Tax Agents on the Secretary of State's Internet Web
site.
22260.6. A Property Tax Agent shall be subject to civil
penalties, and may be subject to suspension or termination of his or
her Property Tax Agent registration, pursuant to Section 22260.8, 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 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 or as a member of the assessment
appeals board.
(j) Make a campaign contribution to a county assessor, 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 registered Property Tax Agent if the Secretary of
State is notified, pursuant to Section 22260.3, or otherwise
discovers that , within the past 10 years, either of the
following circumstances exist:
(1) The Property Tax Agent had his or her professional license to
practice as an attorney, certified public accountant, public
accountant, or actuary revoked.
(2) The Property Tax Agent has been convicted of any
misdemeanor under state or federal tax laws applicable to acts or
omissions occurring during his or her representa tion of
any client 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.
(b) The Secretary of State shall provide a copy of the cease and
desist order to the Attorney General.
(c) Prior to issuing a cease and desist order to a registered
Property Tax Agent pursuant to this section, the Secretary of State
shall provide the Property Tax Agent with a written notice and an
opportunity to demonstrate that grounds for the cease and desist
order do not exist.
(d) If the Secretary of State is notified by the Attorney General,
a district attorney, or city attorney pursuant to Section 22260.9,
the Secretary of State shall suspend or permanently terminate the
Property Tax Agent's registration, as appropriate, and update the
list of Property Tax Agents established pursuant to Section 22260.5.
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 and may determine if a person who violates this chapter
shall remain eligible to be a Property Tax Agent or if that person's
eligibility shall be suspended or permanently terminated. In
assessing the amount of the civil penalty, and in determining
eligibility, suspension, or termination, 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.
22260.9. The Attorney General, District Attorney, or City
Attorney shall notify the Secretary of State of either 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 or change in eligibility 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. Section 12195 of the Government Code is amended to read:
12195. (a) Special filing fees for joint powers agreements are
the following:
(1) Filing a notice of a joint powers agreement: One dollar ($1).
(2) Filing an amendment of a joint powers agreement: One dollar
($1).
(3) Filing an executed copy of each agreement, lease, or equipment
trust certificate for an agency that financed or refinanced transit
equipment or transferred federal income tax benefits with respect to
transit equipment pursuant to subdivision (a) of Section 6518: One
dollar ($1).
(b) Special filing fees for athlete agents are the following:
(1) Filing an athlete agent disclosure statement: Thirty dollars
($30).
(2) Filing an amendment to an athlete agent disclosure statement:
Twenty dollars ($20).
(c) The special filing fee for registering a claim as successor in
interest is ten dollars ($10).
(d) The special filing fee for issuing a certificate of official
character is twenty dollars ($20).
(e) Special filing fees for a Property Tax Agent registration are
the following:
(1) Filing a Property Tax Agent registration: one hundred dollars
($100) or a fee established by the Secretary of State in an amount so
that the total amount of fees collected pursuant to this subdivision
do not exceed the amount necessary to administer Chapter 14.5
(commencing with Section 22260) of Division 8 of the Business and
Professions Code.
(2) Filing updated information for an unexpired Property Tax Agent
registration: no fee.
SEC. 3. 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.