Amended in Senate July 15, 2015

Amended in Assembly April 22, 2015

Amended in Assembly April 13, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 681

Introduced by Assembly Member Ting

February 25, 2015

An act to amend Section 15645, and to amend, repeal, and add Section 15643, of the Government Code, relating to the State Board of Equalization.

LEGISLATIVE COUNSEL’S DIGEST

AB 681, as amended, Ting. State Board of Equalization: surveys: assessment procedures and practices: county assessor.

Existing law requires the State Board of Equalization to make surveys in each county and city and county to determine the adequacy of the procedures and practices employed by the county assessor in the valuation of property. Existing law requires the board to proceed with the surveys of the assessment procedures and practices in the several counties and cities and counties as rapidly as feasible, and to repeat or supplement each survey at least once in 5 years. Existing law requires the surveys of the 10 largest counties and cities and counties to include a sampling of assessments of the local assessment rolls, and requires the board, each year, to select at random at least 3 of the remaining counties or cities and counties to conduct a sample of assessments on the local assessment roll in those counties.

This bill would eliminate the board’s requirement to select at random at least 3 remaining counties or cities and counties to conduct a sample of assessments on the local assessment roll, and would instead require the board, commencing January 1, 2016, and each of the next 4 calendar years, to survey the assessment procedures of qualified counties or cities and counties and to conduct sample assessments on the local roll of other qualified counties or cities and counties. This bill would define “qualified counties or cities and counties” for these purposes. begin insert This bill would additionally require the board to conduct a sample of assessments in a county or city and county that the board determines has significant assessment problems, as specified. end insert This bill would require the qualified counties and cities and counties to be stratified and selected at random by the board, in consultation with the California Assessors’ Association.

Existing law requires the board, upon completion of the survey of the procedures and practices of a county assessor, to prepare a written survey report setting forth its findings and recommendations, and requires the board, before preparing its written survey report, to meet with the assessor to discuss and confer on those matters which may be included in the written survey report. Existing law requires the survey report, together with the assessor’s response and the board’s comments, to constitute the final survey report. Existing law requires the final survey report to be issued by the board within 2 years after the date the board began the survey.

This bill would require the board, before preparing its written survey report, to notify the former assessor if the survey reviews the former assessor’s procedures and practices, and to also meet with the former assessor, upon his or her request if the survey reviews, to discuss and confer on those matters that may be included in the survey report. This bill would require an addendum to the final survey report to be published to include the former assessor’s written response and the board’s comments, if any. This bill would shorten the period of time the board has to issue the final survey report from 2 years to 15 months for any survey commenced on or after July 1, 2016, to June 30, 2017, inclusive, and to 12 months for any survey commenced on or after July 1, 2017.

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.  

Section 15643 of the Government Code is
amended to read:

15643.  

(a) (1) The board shall proceed with the surveys of
the assessment procedures and practices in the 10 largest counties
and cities and counties as rapidly as feasible, and shall repeat or
supplement each survey at least once in five years.

(2) The surveys of the 10 largest counties and cities and counties
shall include a sampling of assessments on the local assessment
rolls as described in Section 15640. The 10 largest counties and
cities and counties shall be determined based upon the total value
of locally assessed property located in the counties and cities and
counties on the lien date that falls within the calendar year of 1995
and every fifth calendar year thereafter.

(b) The board shall, commencing January 1, 2016, and each of
the next four calendar years, do begin delete both end delete begin insert all end insert of the following:

(1) (A) Survey the assessment procedures of one qualified
county or city and county and conduct a sample of assessments
on the local assessment roll of another qualified county or city and
county.

(B) For purposes of this paragraph, “qualified county or city
and county” means the begin delete eleventh end delete begin insert 11th end insert to the begin delete twentieth, end delete begin insert 20th, end insert
inclusive, largest counties and cities and counties. The begin delete eleventh end delete
begin insert 11th end insert to the begin delete twentieth, end delete begin insert 20th, end insert inclusive, largest counties and cities
and counties shall be determined based upon the total value of
locally assessed property located in the counties and cities and
counties on the lien date that falls within the calendar year of begin delete 2016
and each of the next four calendar years. end delete begin insert 2015 and every fifth
calendar year thereafter. end insert

(C) The qualified counties and cities and counties shall be
stratified and selected at random by the board, in consultation with
the California Assessors’ Association.

(2) (A) Survey the assessment procedures of three qualified
counties or cities and counties and conduct a sample of assessments
on the local assessment roll of two other qualified counties or cities
and counties.

(B) For purposes of this paragraph, “qualified counties or cities
and counties” means the begin delete twenty-first end delete begin insert 21st end insert to the begin delete fifty-eighth, end delete begin insert 58th, end insert
inclusive, largest counties and cities and counties. The begin delete twenty-first end delete
begin insert 21st end insert to the begin delete fifty-eighth, end delete begin insert 58th, end insert inclusive, largest counties and cities
and counties shall be determined based upon the total value of
locally assessed property located in the counties and cities and
counties on the lien date that falls within the calendar year begin delete 2016
and each of the next four calendar years. end delete begin insert 2015 and every fifth
calendar year thereafter. end insert

begin insert

(3) Conduct a sample of assessments on the local assessment
roll in a county or city or county that the board determines has
significant assessment problems pursuant to Section 75.60 of the
Revenue and Taxation Code.

end insert

(C) The qualified counties and cities and counties shall be
stratified and selected at random by the board, in consultation with
the California Assessors’ Association.

(c) The statewide surveys which are limited in scope to specific
topics, issues, or problems may be conducted whenever the board
determines that a need exists to conduct a survey.

(d) When requested by the legislative body or the assessor of
any county or city and county to perform a survey not otherwise
scheduled, the board may enter into a contract with the requesting
local agency to conduct that survey. The contract may provide for
a board sampling of assessments on the local roll. The amount of
the contracts shall not be less than the cost to the board, and shall
be subject to regulations approved by the Director of General
Services.

(e) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed.

SEC. 2.  

Section 15643 is added to the Government Code, to
read:

15643.  

(a) The board shall proceed with the surveys of the
assessment procedures and practices in the several counties and
cities and counties as rapidly as feasible, and shall repeat or
supplement each survey at least once in five years.

(b) The surveys of the 10 largest counties and cities and counties
shall include a sampling of assessments on the local assessment
rolls as described in Section 15640. In addition, the board shall
each year, in accordance with procedures established by the board
by regulation, select at random at least three of the remaining
counties or cities and counties, and conduct a sample of
assessments on the local assessment roll in those counties. If the
board finds that a county or city and county has “significant
assessment problems,” as provided in Section 75.60 of the Revenue
and Taxation Code, a sample of assessments will be conducted in
that county or city and county in lieu of a county or city and county
selected at random. The 10 largest counties and cities and counties
shall be determined based upon the total value of locally assessed
property located in the counties and cities and counties on the lien
date that falls within the calendar year of 2021 and every fifth
calendar year thereafter.

(c) The statewide surveys which are limited in scope to specific
topics, issues, or problems may be conducted whenever the board
determines that a need exists to conduct a survey.

(d) When requested by the legislative body or the assessor of
any county or city and county to perform a survey not otherwise
scheduled, the board may enter into a contract with the requesting
local agency to conduct that survey. The contract may provide for
a board sampling of assessments on the local roll. The amount of
the contracts shall not be less than the cost to the board, and shall
be subject to regulations approved by the Director of General
Services.

(e) This section shall become operative on January 1, 2021.

SEC. 3.  

Section 15645 of the Government Code is amended
to read:

15645.  

(a) Upon completion of a survey of the procedures and
practices of a county assessor, the board shall prepare a written
survey report setting forth its findings and recommendations and
transmit a copy to the assessor. In addition the board may file with
the assessor a confidential report containing matters relating to
personnel. Before preparing its written survey report, the board
shall do both of the following:

(1) Meet with the assessor to discuss and confer on those matters
which may be included in the written survey report.

(2) Notify the former assessor if the survey reviews the former
assessor’s procedures and practices, and meet with the former
assessor, upon his or her request, to discuss and confer on those
matters that may be included in the survey report.

(b) Within 30 days after receiving a copy of the survey report,
the assessor may file with the board a written response to the
findings and recommendations in the survey report.

The board may, for good cause, extend the period for filing the
response.

(c) (1) The survey report, together with the assessor’s response,
if any, and the board’s comments, if any, shall constitute the final
survey report. An addendum to the final survey report shall be
published to include a former assessor’s written response to the
findings and recommendations in the survey report that reviewed
the former assessor’s procedures and practices, if any, and the
board’s comments, if any. The final survey report shall be issued
by the board begin delete within one year after the date the board began the
survey, except end delete as follows:

begin insert

(A) For any survey commenced before July 1, 2016, within two
years after the date the board began the survey.

end insert begin delete

(A)

end delete

begin insert (B) end insert  For any survey commenced on or after July 1, 2016, to June
30, 2017, within 15 months after the date the board began the
survey.

begin delete

(B)

end delete

begin insert (C) end insert  For any survey commenced on or after July 1, 2017, within
12 months after the date the board began the survey.

(2) Within a year after receiving a copy of the final survey
report, and annually thereafter, no later than the date on which the
initial report was issued by the board and until all issues are
resolved, the assessor shall file with the board of supervisors a
report, indicating the manner in which the assessor has
begin delete implemented, end delete begin insert implemented or end insert intends to begin delete implement end delete begin insert implement, end insert or
the reasons for not implementing, the recommendations of the
survey report, with copies of that response being sent to the
Governor, the Attorney General, the State Board of Equalization,
the Senate and begin delete Assembly end delete begin insert Assembly, end insert and to the grand juries and
assessment appeals boards of the counties to which they relate.