BILL NUMBER: AB 1151 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2013
INTRODUCED BY Assembly Member Ting
FEBRUARY 22, 2013
An act to add Chapter 14.5 (commencing with Section 22260) to
Division 8 of the Business and Professions Code, relating to
business.
LEGISLATIVE COUNSEL'S DIGEST
AB 1151, as amended, Ting. Tax agent registration.
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 which 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 valuation of taxable property within the county
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 of an assessment appeals board.
This bill would, commencing July 1, 2014
2015 , prohibit a tax agent, defined as any individual who is
employed, is under contract, or otherwise receives compensation to
communicate directly 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, from representing
a tax payer taxpayer before a county
official without first being registered and issued a registration
number by the Secretary of State. The bill would require a tax agent
to file with the Secretary of State an application for registration
that includes specified information and an unspecified registration
fee. The bill would make the registration subject to annual
biennial renewal and require the payment of an
unspecified renewal fee and proof of the completion of 8 hou
rs of continuing education classes from providers approved
by the State Board of Equalization .
This bill would require the Secretary of State to semiannually
develop a list of registered tax agents and to make that list
publicly available on its Internet Web site. The bill would authorize
the Secretary of State to send a tax agent and the represented
taxpayer a notice of noncompliance for the failure to comply with
these provisions, as specified. The bill would also authorize the
Attorney General to pursue civil fines for the failure to comply with
these provisions subject to specified procedures. The bill would
authorize the Secretary of State to adopt rules and regulations for
the purpose of carrying out these provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
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. TAX AGENTS
22260. The following definitions apply for the 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) "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. The
filing or submitting of required county forms for compliance purposes
and communication relating to those filings shall not be considered
influencing official action.
(c) "Official action" means establishing a taxable value for any
property subject to property taxation, including the initial value,
declines in value, corrections to value, and any other changes in the
taxable value set, completing an assessment roll showing the
assessed values of any property, applying all legal exemptions to
assessments, issuing refunds, establishing payment plans, applying
penalties, and deciding all property assessment disputes between
taxpayers and the county assessor.
(c) "Official action" means corrections to values and any other
changes in taxable value set; applying all legal exemptions to
assessments; and deciding all property assessment disputes between
taxpayers and a county official, including hearings before an
assessment hearing officer or a county assessment appeals board.
(d) "Public official" and "public employee" mean any government
official or employee of any state or local government agency.
(e) "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
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.
22260.2. (a) (1) Each tax agent, within 30 days after July 1,
2014 2015 , shall file with the
Secretary of State an application for a registration containing the
following information:
(A) The tax agent's full name, business address, business
telephone number, and business email address, if applicable.
(B) The name of the tax agent's employing tax agent firm, if
applicable.
(2) A tax agent shall also pay the Secretary of State a
registration fee in the amount of ____ dollars ($____).
(b) If the requirements of subdivision (a) are satisfied, the
Secretary of State shall issue a tax agent a tax
agent registration number to a tax agent .
(c) Beginning July 1, 2014 2015 , no
tax agent shall represent taxpayers before a county official without
first being registered and issued a registration number pursuant to
this section.
(d) A registration issued pursuant to this section shall expire
one year two years from its date of
issuance unless and until that person terminates the registration. An
expired registration may be renewed annually
biennially if the continuing education requirement described in
subdivision (e) is met and the registrant shall pay
pays an annual renewal registration fee in the
amount of ____ dollars ($____) to the Secretary of State.
(e) (1) As part of the biennial renewal requirements described in
subdivision (d), the tax agent shall provide proof of at least eight
hours of continuing education classes, with at least seven hours
relating to California property taxation and at least one hour of
ethics training. The topics shall include, but not be limited to, the
following subjects: the assessment handbooks, property tax rules,
recent court rulings, and legislation. These classes shall be from
providers to be approved by the State Board of Equalization.
(2) A registrant shall be exempt from the continuing education
requirement in paragraph (1) if he or she provides proof of
membership as either of the following:
(A) An active member of the State Bar of California.
(B) A Certified Member of the Institute for Professionals in
Taxation (CMI) with a designation in Property Tax.
(e)
(f) A person may not register or provide services as a
tax agent if that person:
(1) Has been convicted of any felony under state or federal tax
laws.
(2) Has been convicted of any other criminal offense involving
dishonesty, breach of trust, or moral turpitude.
(3) Has been disbarred or suspended for any reason other than the
failure to pay dues from practice as an attorney, certified public
accountant, public accountant, or actuary ,
real estate broker, real estate salesperson, or licensed real estate
appraiser 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.
(f)
(g) 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.
22260.3. No county supervisor or member of a county assessment
appeals board may act as a tax agent in the county in which they
currently serve in as a county supervisor or as a member of a county
assessment appeals board.
22260.4. (a) Within 30 days of any change in any of the
registration information submitted pursuant to Section 22260.2, a tax
agent shall file updated registration information with the Secretary
of State.
(b) When a 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 violation of this chapter for any person to act
as a tax agent if that person is not registered as a tax agent
pursuant to Section 22260.2 or if that person was previously
registered as a tax agent pursuant to Section 22260.2 but that person
is no longer registered as a tax agent.
22260.5. Nothing in this chapter shall be construed to prohibit a
county from, by ordinance, enacting tax agent reporting requirements
for campaign contributions to elected officials in that county.
22260.8. The secretary shall semiannually develop a list of
registered tax agents and make that list available to the public on
its Internet Web site.
22260.12. (a) If, after investigation, it is determined by the
Secretary of State that any tax agent acting on behalf of the
taxpayer fails to comply with this chapter and the tax agent has
failed to cure the violation within 30 days of first receiving
notice, the Secretary of State shall send the tax agent and the
taxpayer or taxpayers whom the tax agent represents a notice of the
tax agent's noncompliance.
(b) Any person may file a complaint with the Attorney General that
any tax agent has violated any provision of this chapter.
(c) For any violation of this chapter, the Attorney General shall
have the discretion to pursue civil fines for noncompliance or
violations of this chapter. The Attorney General shall be designated
as the enforcement officer for determination and imposition of the
civil fines and noncompliance fees to be issued.
(d) Notwithstanding subdivision (c), no administrative fine shall
be issued if the first violation of this chapter is cured within 30
days of the date in which the tax agent receives notice of the
violation from the Attorney General.
22260.14. Subject to the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code), the Secretary of State may develop rules
and regulations for the administration of this chapter.
22260.16. This chapter shall become operative on July 1,
2014 2015 .