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 boards 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 boards 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 secretarys duties. Under existing statutory law, the secretary holds office during the pleasure of the board and receives compensation as prescribed by the board. The boards 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 members 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.