BILL NUMBER: AB 2014	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2012

INTRODUCED BY   Assembly Member Ammiano

                        FEBRUARY 23, 2012

   An act to add Section 64.1 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2014, as amended, Ammiano. Property taxation: change in
ownership: legal entities: task force.
   The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred. Existing property tax law specifies those
circumstances in which the transfer of ownership interests in a
corporation, partnership, limited liability company, or other legal
entity results in a change in ownership of the real property owned by
that entity, and generally provides that a change in ownership as so
described occurs when a legal entity or other person obtains a
controlling or majority ownership interest in the legal entity.
Existing law also specifies other circumstances in which certain
transfers of ownership interests in legal entities result in a change
in ownership of the real property owned by those legal entities.
   This bill would require the Legislature to convene a task force
composed of specified citizens and officials , including, among
others, 2 members who are county assessors,  to update the work
done by a task force in 1979 that provided recommendations to the
Legislature regarding the definition of change of ownership described
above for complex legal entities, as provided.  This bill would
require the task force to convene its first meeting on or before
April 1, 2013, and to submit a report containing specified
information to the Legislature within 7 months of the first task
force meeting.  
   By imposing new duties upon county assessors with respect to their
service on the task force, this bill would impose a state-mandated
local program.  
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes . State-mandated local program:  no
  yes  .


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

  SECTION 1.  Section 64.1 is added to the Revenue and Taxation Code,
to read:
   64.1.  (a) The Legislature shall convene a task force to update
the work done by a task force in 1979 that provided recommendations
to the Legislature regarding the definition of change of ownership
for complex legal entities.
   (b) The task force shall examine all of the following issues
relating to changes in ownership of real property owned by complex
legal entities:
   (1) The availability of information.
   (2) The sufficiency of reporting requirements.
   (3) Whether current definitions are sufficient to capture the
concept of change of ownership.
   (c)  (1)    The task force shall be composed of
a representative group of citizens and officials who have been
engaged in the issues described in subdivision (b)  ,
including, but not limited to, assessors, researchers, attorneys,
members of assessment appeals boards, other local officials, and
representatives from the State Board of Equalization  . 
The task force shall consist of 15 members appointed as follows:
 
   (A) Two members, who are members of the State Board of
Equalization. Of these two members, one shall be appointed by the
Speaker of the Assembly and one shall be appointed by the Senate
Committee on Rules.  
   (B) Two members, who are county assessors. Of these two members,
one shall be appointed by the Speaker of the Assembly and one shall
be appointed by the Senate Committee on Rules.  
   (C) Six members of the public. Of these six members, two shall be
appointed by the Governor, two shall be appointed by the Speaker of
the Assembly, and two shall be appointed by the Senate Committee on
Rules.  
   (D) One member, who is the Chair of the Senate Committee on
Governance and Finance, or his or her designee.  
   (E) One member, who is the Chair of the Assembly Committee on
Revenue and Taxation, or his or her designee.  
   (F) One member, who is from the Department of Finance. This member
shall be appointed by the Governor.  
   (G) One member, who is from the Controller's Office. This member
shall be appointed by the Controller's Office.  
   (H) One member, who is from the Treasurer's Office. This member
shall be appointed by the Treasurer's Office.  
   (2) In making appointments pursuant to this section, the Speaker
of the Assembly and the Senate Committee on Rules shall make good
faith efforts to ensure that their appointments reflect the economic,
social, and geographic diversity of the state.  
   (3) The authority responsible for appointing a member of the task
force shall appoint each member on or before April 1, 2013. 

   (d) The task force shall do both of the following:  
   (1) Convene its first meeting on or before June 1, 2013. 

   (2) Submit a report to the Legislature within seven months of the
first task force meeting. The report shall contain the results of the
examination of the issues specified in subdivision (b). 
   SEC. 2.    If the Commission on State Mandates
determines that this act contains 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.