BILL NUMBER: AB 1828 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Dodd
FEBRUARY 9, 2016
An act to amend Section 15626 of the Government Code, relating to
the State Board of Equalization.
LEGISLATIVE COUNSEL'S DIGEST
AB 1828, as introduced, Dodd. State Board of Equalization:
members: conflicts of interest.
The Quentin L. Kopp Conflict of Interest Act of 1990 requires a
member of the State Board of Equalization who has received a
contribution or contributions within the preceding 12 months in an
aggregate amount of $250 or more from a party or his or her agent, or
from any participant or his or her agent, to, prior to rendering any
decision in any adjudicatory proceeding pending before board,
disclose that fact on the record of the proceeding. A member is
prohibited from making, participating in making, or in any way
attempting to use his or her official position to influence, the
decision in an adjudicatory proceeding pending before the board if
the member knows or has reason to know that he or she received a
contribution or contributions in an aggregate amount of $250 or more
from a party to the proceeding, or from a participant in the
proceeding the member knows or has reason to know has a financial
interest in the decision. The act also requires a party to, or a
participant in, an adjudicatory proceeding pending before the board
to disclose on the record of the proceeding any contribution or
contributions in an aggregate amount of $250 or more made within the
preceding 12 months by the party or participant, or his or her agent,
to any member of the board. A person who knowingly or willfully
violates any provision of the act is guilty of a misdemeanor.
This bill would delete the $250 limitation and instead apply the
above-described disclosure and disqualification provisions if a board
member receives any contribution from a party, participant, or
agent, as provided. The bill would also prohibit a board member from
requesting, suggesting, or accepting a contribution from a party,
participant, or agent within the 12 months subsequent to a decision
in the adjudicatory proceeding before the board in which the party or
participant is involved, except as provided. The bill would also
require a party, participant, or agent that makes a contribution
within 12 months subsequent to a decision in an adjudicatory
proceeding in which the party or participant is involved to disclose
to the board contributions to a member within 30 days. The bill would
require the board to make all disclosures required by these
provisions publicly available on its Internet Web site. The bill
would also expand the definition of the term "contribution" to
include certain payments made at the behest of a member of the board,
as defined, and of the terms "party," "participant," and "agent" to
include employees of those persons. The bill would make various
findings and declaration.
By expanding the application of the criminal sanctions of the
Quentin L. Kopp Conflict of Interest Act of 1990, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The State Board of Equalization (the board) is a
constitutionally authorized quasi-judicial body consisting of five
voting members, including the Controller and four members
representing four equalization districts and elected to four-year
terms at gubernatorial elections. The board is the only elected tax
board in the United States.
(b) The board is entrusted by statute to administer more than 30
tax and fee programs that generate state revenue. The board is also
charged with public utility property tax assessments and overseeing
the property tax assessment practices of the state's 58 county
assessors.
(c) Additionally, the board hears appeals from various business
tax assessments and Franchise Tax Board actions.
(d) Board members are subject to the Political Reform Act of 1974
(Title 9 (commencing with Section 81000) of the Government Code) and
rules of the Fair Political Practices Commission applicable to all
other state elected officials.
(e) As a quasi-judicial body, the board is also subject to strict
contribution limits under the Quentin L. Kopp Conflict of Interest
Act of 1990 (Section 15626 of the Government Code) (the Kopp Act).
The Kopp Act recognizes the unique positions of board members as both
elected officials and judges presiding over tax appeals. The Kopp
Act is intended to prevent a board member from creating conflicts of
interest by participating in making or influencing a decision of the
board if the member has accepted a contribution in excess of two
hundred fifty dollars ($250) from a party to an appeal or his or her
agent, or a participant or his or her agent, within the 12 months
preceding the appeal.
(f) The strict contribution limits of the Kopp Act do not apply to
payments made at the behest of a board candidate or committee when
the payment is made for purposes unrelated to his or her candidacy
for elected office.
(g) Despite passage of the Kopp Act in 1990, a loophole allowing
parties before the board and their employees, as well as parties'
agents and their employees, to aggregate multiple contributions that
individually fall below the two hundred fifty dollar ($250) limit but
together exceed two hundred fifty dollars ($250) creates a perceived
conflict of interest when the board hears the parties' appeals.
Similarly, payments made at the behest of a board member by parties
with an approaching appeal before the board create a perceived
conflict of interest.
(h) By enactment of this act, it is the intent of the Legislature
to eliminate the perceived conflicts of interest associated with
contributions and behested payments by parties, participants, their
agents, and employees related to appeals before the board.
SEC. 2. Section 15626 of the Government Code is amended to read:
15626. (a) This section shall be known, and may be cited, as the
Quentin L. Kopp Conflict of Interest Act of 1990.
(b) Prior to rendering any decision in any adjudicatory proceeding
pending before the State Board of Equalization, each member who
knows or has reason to know that he or she received a contribution or
contributions within the preceding 12 months in an
aggregate amount of two hundred fifty dollars ($250) or more
from a party or his or her agent, or from any participant
or his or her agent, shall disclose that fact on the record of the
proceeding.
(c) No (1) A
member shall not make, participate in making, or in any
way attempt to use his or her official position to influence, the
decision in any adjudicatory proceeding pending before the board if
the member knows or has reason to know that he or she received a
contribution or contributions in an aggregate amount of two
hundred fifty dollars ($250) or more within the preceding
12 months from a party or his or her agent, or from any participant
or his or her agent, and if the member knows or has reason to know
that the participant has a financial interest in the decision, as
that term is used in Article 1 (commencing with Section 87100) of
Chapter 7 of Title 9.
(2) A member shall not request or suggest a contribution or
contributions from a party or his or her agent, or from any
participant or his or her agent, within the 12-month period
subsequent to a decision in the adjudicatory proceeding before the
board in which the party or participant is involved.
(3) In addition to paragraph (2), a member shall not accept a
contribution or contributions from a party or his or her agent, or
from any participant or his or her agent, within the 12-month period
subsequent to a decision in the adjudicatory proceeding before the
board in which the party or participant is involved.
(d) (1) Notwithstanding subdivision (c), if
a member receives a contribution which would otherwise require
disqualification under subdivision (c), and he or she returns the
contribution within 30 days from the time he or she knows, or has
reason to know, about the contribution and the adjudicatory
proceeding pending before the board, his or her participation in the
proceeding shall be deemed lawful.
(2) Notwithstanding paragraph (3) of subdivision (c), if a member
receives a contribution within the 12-month period subsequent to a
decision in the adjudicatory proceeding before the board from a
party, participant, or agent and he or she returns the contribution
within 30 days from the time he or she knows, or has reason to know,
about the contribution and the decision in the adjudicatory
proceeding pending before the board, his or her acceptance of the
contribution shall be deemed lawful.
(e) (1) A party to, or a participant in, an
adjudicatory proceeding pending before the board shall disclose on
the record of the proceeding any contribution or contributions
in an aggregate amount of two hundred fifty dollars ($250)
or more made within the preceding 12 months by the party or
participant, or his or her agent, to any member of the board.
The board shall make the disclosure publicly available on
its Internet Web site.
(2) A party to, or a participant in, an adjudicatory proceeding
before the board that makes a contribution to a member of the board
within the 12 months subsequent to a decision in the adjudicatory
proceeding in which the party or agent was involved shall disclose
that contribution to the board within 30 days of making the
contribution. The board shall make the disclosure publicly available
on its Internet Web site as promptly as feasible.
(f) When a close corporation is a party to, or a participant in,
an adjudicatory proceeding pending before the board, the majority
shareholder is subject to the disclosure requirement specified in
this section.
(g) For purposes of this section, if a deputy to the Controller
sits at a meeting of the board and votes on behalf of the Controller,
the deputy shall disclose contributions made to the Controller and
shall disqualify himself or herself from voting pursuant to the
requirements of this section.
(h) For purposes of this section:
(1) "Contribution" has the same meaning as prescribed
in Section 82015 and the regulations adopted thereto.
pursuant to that section, except that "contribution"
shall also include a payment made at the behest of a member of the
board principally for legislative, governmental, or charitable
purposes when that payment is made by a party or his or her agent
or a participant or his or her agent.
(2) "At the behest of a member of the board" means made under the
control or at the direction of, in cooperation, consultation,
coordination, or concert with, at the request or suggestion of, or
with the express prior consent of a member of the board.
(2)
(3) "Party" means any person
person, or his or her employees, who is the subject of an
adjudicatory proceeding pending before the board.
(3)
(4) "Participant" means any person
person, or his or her employees, who is not a party but
who actively supports or opposes a particular decision in an
adjudicatory proceeding pending before the board and who has a
financial interest in the decision, as described in Article 1
(commencing with Section 87100) of Chapter 7 of Title 9. A person
actively supports or opposes a particular decision if he or she
lobbies in person the members or employees of the board, testifies in
person before the board, or otherwise acts to influence the members
of the board.
(4)
(5) "Agent" means any person
person, or his or her employees, who represents a party to or
participant in an adjudicatory proceeding pending before the board.
If a person acting as an agent is also acting as an employee or
member of a law, accounting, consulting, or other firm, or a similar
entity or corporation, both the entity or corporation and the person
are agents.
(5)
(6) "Adjudicatory proceeding pending before the board"
means a matter for adjudication that has been scheduled and appears
as an item on a meeting notice of the board as required by Section
11125 as a contested matter for administrative hearing before the
board members. A consent calendar matter is not included unless the
matter has previously appeared on the calendar as a nonconsent item,
or has been removed from the consent calendar for separate discussion
and vote, or the item is one about which the member has previously
contacted the staff or a party.
(6)
(7) A member knows or has reason to know about a
contribution if, after the adjudicatory proceeding first appears on a
meeting notice of the board, facts have been brought to the member's
personal attention that he or she has received a contribution which
would require disqualification under subdivision (c), or that the
member received written notice from the board staff, before
commencement of the hearing and before any subsequent decision on the
matter, that a specific party, close corporation, or majority
shareholder, or agent thereof, or any participant having a financial
interest in the matter, or agent thereof, in a specific, named
adjudicatory proceeding before the board, made a contribution or
contributions within the preceding 12 months in an aggregate
amount of two hundred fifty dollars ($250) or more.
months. Each member shall provide board staff with a copy of
each of his or her campaign statements at the time each of those
statements is filed.
The notice of contribution shall be on a form prescribed under
rules adopted by the board to provide for staff inquiry of each
party, participant, close corporation, and its majority shareholder,
and any agent thereof, to determine whether any contribution has been
made to a member, and if so, in what aggregate amount and on what
date or dates within the 12 months preceding an adjudicatory
proceeding or decision.
In addition, the staff shall inquire and report on the record as
follows:
(A) Whether any party or participant is a close corporation, and
if so, the name of its majority shareholder.
(B) Whether any agent is an employee or member of any law,
accounting, consulting or other firm, or similar entity or
corporation, and if so, its name and address and whether a
contribution has been made by any such person, firm, corporation, or
entity.
(i) (1) Any person who knowingly or willfully violates any
provision of this section is guilty of a misdemeanor.
(2) No person convicted of a misdemeanor under this section shall
be a candidate for any elective office or act as a lobbyist for a
period for four years following the time for filing a notice of
appeal has expired, or all possibility of direct attack in the courts
of this state has been finally exhausted, unless the court at the
time of sentencing specifically determines that this provision shall
not be applicable. A plea of nolo contendere shall be deemed a
conviction for the purposes of this section.
(3) In addition to other penalties provided by law, a fine of up
to the greater of ten thousand dollars ($10,000), or three times the
amount the person failed to disclose or report properly, may be
imposed upon conviction for each violation.
(4) Prosecution for violation of this section shall be commenced
within four years after the date on which the violation occurred.
(5) This section shall not prevent any member of the board from
making, or participating in making, a governmental decision to the
extent that the member's participation is legally required for the
action or decision to be made. However, the fact that a member's vote
is needed to break a tie does not make the member's participation
legally required.
SEC. 3. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.