California Legislature—2015–16 Regular Session

Assembly Bill No. 1534

Introduced by Committee on Revenue and Taxation (Assembly Members Ting (Chair), Brough (Vice Chair), Dababneh, Gipson, Roger Hernández, Mullin, Quirk, and Wagner)

March 25, 2015

An act to amend and renumber Section 674 of, and to add Article 8.5 (commencing with Section 674) to Chapter 3 of Part 2 of Division 1 of, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1534, as introduced, Committee on Revenue and Taxation. Assessment analyst: certification.

Existing law provides for the annual assessment and collection of property taxes by each county, and provides for the state administration of the property tax by the State Board of Equalization.

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 requires a transferee of real property or a manufactured home that is locally assessed to file a change in ownership statement with the assessor of the county in which the property or manufactured home is located, and also requires a corporation, partnership, limited liability company, or other legal entity to file a change in ownership statement with the board.

Existing property tax law also includes various property tax exemptions as authorized or established by the California Constitution.

This bill would prohibit a person from making decisions with regard to change in ownership, or with regard to property tax exemptions, except a homeowners’ exemption claim, as an employee of the state, or of a requiring county or city and county, unless he or she is the holder of a valid assessment analyst certificate issued by the board. The bill would require the board to provide for the examination of applicants for a certificate and would authorize the board to contract with the Department of Human Resources to give the examinations. The bill would provide for an advanced certificate, pursuant to a course of study prescribed by, and on examination prepared by, the board. The bill would require prescribed annual training for certification, including advanced certification. Failure to complete training as required would be grounds for revocation. The bill would also authorize the board to issue temporary certificates and interim certificates under prescribed circumstances. This bill would specify that its provisions are not to be construed to impede assessors from managing their staff resources efficiently regarding exemption applications and change in ownership documents, provided that noncertificated staff are not responsible for making exemption or change in ownership decisions. This bill would provide that its provisions only apply in those counties and cities and counties that have passed a resolution upon the recommendation of the assessor to require certification as described above.

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.  

The Legislature finds and declares all of the
following:

(a) County assessors are required to follow complex state laws
in the performance of their duties.

(b) The application of those laws is intended to provide
consistent and accurate assessment practices across the state.

(c) It is the intent of the Legislature that the interests of taxpayers
be protected by ensuring that decisions regarding eligibility of a
property for exemption, other than homeowners’ exemptions, or
whether a transaction is a change in ownership or qualifies for an
exclusion from a change in ownership, or both, be made by staff
who is certified to make those decisions.

(d) It is further the intent of the Legislature that implementation
of education and certification requirements required by Section 3
of this act be undertaken in the most efficient and economical
manner, utilizing existing resources of California county assessors
with the advice and counsel of the State Board of Equalization.

SEC. 2.  

Section 674 of the Revenue and Taxation Code is
amended and renumbered to read:

begin delete 674. end delete
begin insert 681. end insert   

(a) All contracts for the performance of appraisal work
for assessors by any person who is not an employee of the state,
any county, or any city shall be entered into only after at least two
competitive bids and shall be entered into either on a fixed fee
basis or on the basis of an hourly rate with a maximum dollar
amount.

(b) In addition to any provision in the Real Estate Appraisers’
Licensing and Certification Law (Part 3 (commencing with Section
11300) of Division 4 of the Business and Professions Code), a
contractor shall maintain the confidentiality of assessee information
and records as provided in Sections 408, 451, and 481 that is
obtained in performance of the contract.

(1) A request for information and records from an assessee shall
be made by the assessor. The assessor may authorize a contractor
to request additional information or records, if needed. However,
a contractor shall not request that information or records without
the written authorization of the assessor.

(2) A contractor shall not provide appraisal data in his or her
possession to the assessor or a contractor of another county who
is not a party to the contract. An assessor may provide that data to
the assessor of another county as provided in subdivision (b) of
Section 408.

(c) A contractor may not retain information contained in, or
derived from, an assessee’s confidential information and records
after the conclusion, termination, or nonrenewal of the contract.
Within 90 days of the conclusion, termination, or nonrenewal of
the contract, the contractor shall:

(1) Purge and return to the assessor any assessee records,
whether originals, copies, or electronically stored, provided by the
assessor or otherwise obtained from the assessee.

(2) Provide a written declaration to the assessor that the
contractor has complied with this subdivision.

(d) All contracts entered into pursuant to subdivision (a) shall
include a provision incorporating the requirements of subdivisions
(b) and (c). This provision of the contract shall use language that
is prescribed by the State Board of Equalization.

(e) For purposes of this section, a “contractor” means any person
who is not an employee of the state, any county, or any city who
performs appraisal work pursuant to a contract with an assessor.

SEC. 3.  

Article 8.5 (commencing with Section 674) is added
to Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation
Code, to read:

 

Article 8.5.  Assessment Analyst Certificates

 

674.  

(a) A person shall not make decisions with regard to
changes in ownership as an employee of the state, a county, or a
city and county, unless he or she is the holder of a valid assessment
analyst certificate issued by the board.

(b) A person shall not make decisions with regard to property
tax exemptions, except for homeowners’ exemption claims, as an
employee of the state, a county, or a city and county, unless he or
she is the holder of a valid assessment analyst certificate issued
by the board.

(c) The board shall provide for the examination of applicants
for an assessment analyst certificate and may contract with the
Department of Human Resources to give the examinations.
Examinations shall be prepared by the board with the advice and
assistance of a committee of five assessors selected by the
California Assessors’ Association for this purpose. No certificate
shall be issued to any person who has not attained a passing grade
in the examination and demonstrated to the board that he or she is
competent to make change in ownership or exemption decisions,
or both, as that competency is defined in regulations duly adopted
by the board. However, any applicant for a certificate who is denied
a certificate pursuant to this section shall have a right to a review
of that denial in accordance with the Administrative Procedure
Act (Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code).

(d) This section does not apply to a person holding a valid
appraiser’s or advanced appraiser’s certificate issued by the board.

(e) The board shall not impose any charge upon a county or city
and county or an applicant for an examination or certification under
this section or for training conducted by the board under Section
675.

675.  

(a) (1) In order to retain a valid certificate, every certified
assessment analyst shall complete at least 24 hours of training
conducted or approved by the board in each one-year period.

(2) Any training time in excess of the 24-hour minimum that is
accumulated in any one year shall be carried over as credit for
future training requirements, with a limit of three years in which
the carryover time may be credited.

(3) Failure to complete training in accordance with this
subdivision shall constitute grounds for revocation of a certificate.
A proceeding to revoke shall be conducted in accordance with the
Administrative Procedure Act (Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code).

(4) Training shall include, but not be limited to, new
developments in applicable case law, statutory law, and
administrative rules.

(b) (1) The board shall issue an advanced assessment analyst
certificate for an applicant that has held a certificate issued in
accordance with Section 674 for at least three years and has done
at least one of the following:

(A) Has successfully completed an advanced course of study
prescribed pursuant to paragraph (2).

(B) Has passed an advanced level examination prepared pursuant
to paragraph (2).

(2) The board, with the advice and assistance of five assessors
selected by the California Assessors’ Association, shall prescribe
an advanced course of study and prepare the advanced level
examination.

(3) In order to retain a valid advanced assessment analyst
certificate, every holder shall complete at least 12 hours of training
in each one-year period.

(4) Any training time for the advanced assessment analyst
certificate that is in excess of the 12-hour minimum accumulated
in any one year shall be carried over as a credit for future training
requirements, with a limit of two years in which the carryover time
may be credited.

(5) Failure to complete training in accordance with this
subdivision shall constitute grounds for revocation of an advanced
assessment analyst certificate. A proceeding to revoke shall be
conducted in accordance with the Administrative Procedure Act
(Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code).

(6) Training to retain the advanced assessment analyst certificate
shall include, but not be limited to, new developments in applicable
case law, statutory law, and administrative rules.

676.  

(a) At the time of certification, each applicant shall
disclose, on forms provided by the board, his or her financial
interest in any legal entity. Thereafter, the form shall be completed
annually.

(b) If the applicant is also required to annually file with the Fair
Political Practices Commission pursuant to Article 3 (commencing
with Section 87300) of Chapter 7 of Title 9 of the Government
Code, a duplicate of that filing shall meet the requirements of this
section.

677.  

The board may issue a temporary certificate to a person
who is newly employed by the state, a county, or a city and county
in order to afford the person the opportunity to apply for and take
an examination, the successful passage of which would qualify
the person for a certificate pursuant to this article. The board shall
not issue a temporary certificate for a duration that exceeds one
year, unless the person has been duly elected or appointed to the
office of assessor. The board shall not renew a temporary
certificate.

678.  

The board may issue an interim certificate to a person
who is currently employed by the state, a county, or a city and
county, and who is making change in ownership or exemption
decisions in order to afford that person the opportunity to apply
for and take an examination, the successful passage of which would
qualify the person for a certificate pursuant to this article. The
board shall not issue an interim certificate for a duration that
exceeds four years, unless the person has been duly elected or
appointed to the office of assessor. The board shall not renew an
interim certificate.

679.  

This article shall not be construed to impede an assessor
from managing his or her staff resources efficiently, and in a
manner that allows noncertificated staff to prepare and work with
exemption applications and change in ownership documents,
provided that the noncertificated staff are not responsible for
making exemption or change in ownership decisions.

680.  

This article shall only apply in counties or cities and
counties that have passed a resolution upon the recommendation
of the assessor to require certification as provided by this article.