BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M.Hertzberg, Chair
2015 - 2016 Regular
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|Bill No: |AB 1534 |Hearing | 6/24/15 |
| | |Date: | |
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|Author: |Committee on Revenue and |Tax Levy: |No |
| |Taxation | | |
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|Version: |4/30/15 |Fiscal: |Yes |
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|Consultant|Grinnell |
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ASSESSMENT ANALYSIS: CERTIFICATION
Bars assessors' employees from making decisions regarding
changes of ownership without holding a certificate; specifies
training program.
Background and Existing Law
Section One of Article XIII of the California Constitution
provides that all property is taxable unless explicitly exempted
by the Constitution or federal law. In 1850, the Legislature
first directed county assessors to tax property; however,
assessors at the time often applied tax rates and methods of
assessment that varied significantly from county to county. The
California Constitution of 1879 created the Board of
Equalization (BOE) to equalize property tax rates and assessment
practices among counties. As part of this oversight role, BOE
administers the property tax certification program, which
imposes certification and annual training requirements on
property tax appraisers and auditor-appraisers who are county
employees. The California Assessors' Associations wants BOE to
create a certification program to help train employees to make
determinations regarding changes in ownership and welfare
exemptions.
Proposed Law
AB 1534 (Committee on Revenue and Taxation) 4/30/15 Page 2
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Assembly Bill 1534 bars any state or county employee from making
decisions with regard to changes in ownership or property tax
exemptions, except the homeowners' exemption, unless he or she
is the holder of a valid BOE assessment analyst certificate.
The measure sets up a process to certify an assessment analyst,
and creates three additional certificates: temporary, interim,
and advanced.
BOE must create an examination for applicants seeking an
assessment analyst certificate, and may contract with the
California Department of Human Resources to give the
examinations. BOE must prepare the exam with the advice and
assistance of a committee of five assessors selected by the
California Assessors' Association. BOE cannot issue a
certificate 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.
However, any applicant denied a certificate can ask for a
review under the Administrative Procedure Act. Individuals
holding a valid appraiser's or advanced appraiser's certificate
from BOE aren't subject to the bill's requirements, and BOE
can't charge counties for the bill's costs.
The bill requires every certified assessment analyst to complete
at least 24 hours of continuing education training conducted or
approved by BOE each year. Any training time in excess of the
24-hour minimum that is accumulated in any one year must be
carried over as credit for future training requirements, with a
limit of three years in which the carryover time may be
credited. Failure to complete training shall constitute grounds
for revocation of a certificate, and a proceeding to revoke
shall be conducted in accordance with the Administrative
Procedure Act.
BOE must issue an advanced assessment analyst certificate for an
applicant that has held an assessment analysts certificate for
at least three years and has:
Completed an advanced course of study prepared by BOE
and assistance of five assessors selected by the California
Assessors' Association, and
Passed an advanced level examination,
To retain a valid advanced assessment analyst certificate, every
AB 1534 (Committee on Revenue and Taxation) 4/30/15 Page 3
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holder must complete at least 12 hours of training in each
one-year period, but any training time for the advanced
assessment analyst certificate in excess of the 12-hour minimum
accumulated in any one year must be carried over as credit for
future training requirements, with a limit of two years in which
the carryover time may be credited. Failure to complete
training shall constitute grounds for revocation of a
certificate, and BOE can conduct a proceeding to revoke under
the Administrative Procedure Act.
BOE can issue a temporary certificate to a person who is newly
employed by the state or county to allow the person time to pass
the exam, but it can't last more than one year, unless the
person has been duly elected or appointed to the office of
assessor. BOE cannot renew a temporary certificate.
BOE can also issue an interim certificate to a person who is
currently employed by the state or county who is making change
in ownership or exemption decisions to allow the person time to
pass the exam. BOE cannot 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. BOE cannot
renew an interim certificate.
Applicants must disclose his or her financial interest in any
legal entity at the time of initial certification, and must
complete the form annually. The bill deems a duplicate of a
filing to the Fair Political Practices Commission to meet the
requirement.
The measure clarifies that it can't be construed to impede an
assessor from managing his or her staff resources efficiently,
and in a manner that allows non-certificated staff to prepare
and work with exemption applications and change in ownership
documents, provided that the non-certificated staff are not
responsible for making exemption or change in ownership
decisions.
The measure makes legislative findings and declarations
supporting its purposes, and renumbers the section of law
allowing for contract employees.
State Revenue Impact
AB 1534 (Committee on Revenue and Taxation) 4/30/15 Page 4
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BOE states that AB 1534 doesn't have a revenue impact.
Comment
1. Purpose of the bill . Since current law requires appraisers
to be certified, similar certification procedures are needed for
state and local government employees making decisions in regard
to change in ownership and property tax exemptions. Change in
ownership and exemption decisions are highly complex, requiring
a thorough understanding of different legal documents, statutes,
regulations, and court decisions. This bill is intended to
ensure that employees making change in ownership and exemption
decisions are adequately trained and educated.
2. Have we met before ? AB 1534 is almost identical to AB 2756
(Committee on Revenue and Taxation, 2014), which the Committee
approved unanimously last year, but was subsequently vetoed by
the Governor. In his veto message, Governor Brown stated that
state providing training and certification should be something
the assessors "can and should be doing without a state mandate."
In response, AB 1534 states that its provisions only become
effective in counties or cities and counties that have enacted a
resolution upon recommendation of the assessor to require the
measure's certification. While Legislative Counsel didn't key
either bill a state-mandated local program, granting counties
the authority to opt-in to the measure's requirements speaks
directly to the Governor's message.
Assembly Actions
Assembly Floor 79-0
Assembly Appropriations 17-0
Assembly Revenue and Taxation 9-0
Support and
Opposition (6/16/15)
Support : California Assessors' Association
Opposition : None received.
AB 1534 (Committee on Revenue and Taxation) 4/30/15 Page 5
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