Amended in Assembly April 16, 2013

Amended in Assembly April 9, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1151

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, begin delete 2015, end delete begin insert end insert begin insert 2014, end insert 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 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 biennial renewal and require the payment of an unspecified renewal fee begin delete and proof of the completion of 8 hours of continuing education classes from providers approved by the State Board of Equalization end delete .

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 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.

begin insert

(3) An in-house tax professional or in-house employee
representing his or her employer by influencing official action.

end insert

22260.2.  

(a) (1) Each tax agent, within 30 days after July 1,
begin delete 2015 end delete begin insert 2014 end insert , 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 registration number to a
tax agent.

(c) Beginning July 1, begin delete 2015, end delete begin insert 2014, end insert 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
two years from its date of issuance unless and until that person
terminates the registration. An expired registration may be renewed
biennially if begin delete the continuing education requirement described in
subdivision (e) is met and end delete the registrant pays an annual renewal
registration fee in the amount of ____ dollars ($____) to the
Secretary of State.

begin delete

(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.

(f)

end delete

begin insert (e) end insert  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, 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.

begin delete

(g)

end delete

begin insert (f) end insert  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, begin delete 2015 end delete
begin insert 2014 end insert .