BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1534


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1534 (Committee on Revenue and Taxation) - As Amended April 30,  
          2015


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          |Policy       |Revenue and Taxation           |Vote:|9 - 0        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill prohibits an assessor or any person employed by the  
          office of an assessor from making any decisions regarding  
          "change in ownership" issues or property tax exemptions without  
          holding valid assessment analyst certificates issued by the  
          Board of Equalization (BOE), but only if the relevant city or  
          county has adopted a resolution upon recommendation of the  
          assessor to require a valid assessment analyst certificate.   
          Specifically, this bill:


          1)Requires the BOE to prepare an examination with the assistance  








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            and advice of the California Assessors' Association and  
            provide it for applicants.





          2)Requires a certified assessment analyst to complete at least  
            24 hours of training conducted or approved by the BOE in each  
            one-year period; requires an advanced assessment analyst to  
            complete at least 12 hours of training in each one-year  
            period.





          3)Exempts persons holding a valid appraiser's or advanced  
            appraiser's certificate issued by the BOE from having to also  
            receive an assessment analyst certificate.





          4)Requires the BOE to prescribe an advanced course of study and  
            prepare an advanced level examination with the assistance and  
            advice of the California Assessors' Association, and requires  
            the BOE to issue an advanced assessment analyst certificate  
            for an applicant who has held a valid assessment analyst  
            certificate for at least three years and has either  
            successfully completed an advanced study course or passed an  
            advanced level examination.





          5)Allows the BOE to issue temporary and/or interim certificates  








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            in limited circumstances.





          6)Prohibits the BOE from imposing any charge upon a county, city  
            or an applicant for an assessment analyst examination or  
            certification or training conducted by the BOE.





          FISCAL EFFECT:


          Estimated GF costs of approximately $175,000 in the first year  
          and $150,000 each year thereafter to the BOE to establish and  
          administer the certificate program.


          COMMENTS:


          1)Purpose.  According to the authors, state law does not require  
            any certification or training for employees of county  
            assessors who make change in ownership or exemption decisions,  
            yet their decisions can potentially impact the tax roll by  
            adding or removing millions of dollars each year.  The authors  
            and supporters, including the California Assessors'  
            Association, believe change in ownership and exemption  
            decisions are highly complex and require a thorough  
            understanding of legal documents as well as a variety of  
            statutes, regulations, and court decisions.  Current law  
            already requires appraisers to be certified, and this bill  
            will create similar certification procedures for employees of  
            assessors making those decisions, ensuring they are educated  
            and trained.








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          2)Change in Ownership.  Since the adoption of Proposition 13 in  
            1978, real property has generally been taxed on its value at  
            the time of its acquisition, with increases for inflation  
            limited to 2% per year.  The property is reassessed to its  
            market value when the ownership of property is changed.  While  
            the requirement to reassess property upon a change in  
            ownership is contained in the California Constitution, the  
            phrase "change in ownership" is not defined.  There have been  
            hundreds of court cases relating to interpretation of "change  
            in ownership" and exemption issues, leading to considerable  
            legal debate as to its meaning and intended interpretation.


          3)Mandatory Certification, If You Want It.  This bill is  
            substantially similar to AB 2756 (Revenue and Taxation  
            Committee) of 2014, which was vetoed by the Governor.  That  
            bill required all assessor offices to obtain the training and  
            certification of its employees, resulting in a state mandate.   
            In his veto message, the Governor made clear that county  
            assessors should be providing this training without a state  
            mandate.  This bill includes an opt-in provision for county  
            assessors, requiring counties and cities to first adopt a  
            resolution upon recommendation of the assessor before  
            requiring its employees to obtain certifications.  As a  
            result, this bill does not create a state mandate. 





          Analysis Prepared by:Joel Tashjian / APPR. / (916)  
          319-2081













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