43. (a) (1) The Legislature requests that the Regents of the University of California, through a new or existing research center, perform a comprehensive assessment of major tax expenditures consistent with the terms of this section.
(2) This section shall apply to the University of California only to the extent that the Regents of the University of California, by resolution, make any of these provisions applicable to the university.
(b) By July 1, 2021, the center identified pursuant to subdivision (a) shall present a comprehensive, peer-reviewed assessment of major tax expenditures
to the California Tax Expenditure Review Board at a public meeting of the board.
(c) To the extent that the University of California needs access to taxpayer data and information, the Franchise Tax Board or the California Department of Tax and Fee Administration shall ensure relevant taxpayer data is made available and shall ensure appropriate levels of data security and privacy protections are in place for transferred and sensitive data.
(d) The scope of the comprehensive assessment shall include, but
is not limited to, the following, to the extent possible and reasonably related to the major tax expenditure:
(1) A description of the legislative intent for each tax expenditure, if the act adding or amending the expenditure contains legislative findings and declarations of that intent or that legislative intent is otherwise expressed or specified by that act.
(2) A brief description of the beneficiaries of the tax
(3) The number of returns filed or business entities affected, as applicable, for the most recent tax year for which full year data is available.
(4) A listing of any comparable federal tax benefit.
(5) A description of any recent prior tax expenditure evaluation or compilation of information completed by any state agency.
(6) Total General Fund dollars lost due to the tax expenditure.
(7) The economic, social, environmental, or any other impact of the tax expenditure to the State of California using metrics that the University of California deems appropriate for the tax expenditure.
(8) Options for modifying the tax expenditure to improve its effectiveness or to reduce its costs to the General Fund.
(e) After receiving the comprehensive assessment from the center, the board
shall, within five business days, post it on its internet website.
(f) (1) After the comprehensive assessment of the major tax expenditure has been posted on the board’s internet website for at least 14 days, and no later than two months from the date the board posts the comprehensive assessment on its internet website, the board shall meet in public for the purposes of voting to make a recommendation to the Legislature regarding the major tax expenditure. The votes of three members are necessary to make a recommendation to the Legislature. Any recommendation shall be subject to enactment by the Legislature. Nothing in this section shall be construed to preclude the Legislature from taking action independently to amend, sunset, or repeal existing tax expenditures.
(2) The board shall consider information provided by the public in response to the comprehensive assessment at the meeting before making the recommendation.
(3) The recommendation from the board to the Legislature shall include preferred options for modifying the tax expenditure to improve its effectiveness or to reduce its costs to the General Fund, if these options are identified. In making its recommendation, the board shall consider the comprehensive assessment by the University of California and the following:
(A) The extent to which the major tax
expenditure is a cost-effective use of resources compared to other options to address the same purpose, intent, or goal.
(B) The major tax expenditure’s effect on the state’s General Fund.
(C) The major tax expenditure’s economic, social, environmental, or any other impact.
(g) By January 1, 2022, the board shall provide a report to the Legislature that compiles all of its recommendations regarding major tax expenditures, including any recommendation the board failed
to make for a major tax expenditure for which the
University of California has completed a comprehensive assessment, and the reasons for the failure. The board shall also submit the report to the Senate Committee on Budget and Fiscal Review, the Senate Committee on Governance and Finance, the Assembly Committee on Budget, and the Assembly Committee on Revenue and Taxation, and post it on its internet website. The report to the Legislature shall be submitted in compliance with Section 9795 of the Government Code.
(h) Upon receipt of the report required by subdivision (g), the Senate Committee on Governance and Finance and the Assembly Committee on Revenue and Taxation shall hold a joint public hearing on the report by August 15 of the second year of the legislative session.
(i) This section shall become
inoperative on the date six months after the hearing in subdivision (h), and shall be repealed on the following January 1.