BILL NUMBER: AB 1828 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 19, 2016
AMENDED IN ASSEMBLY APRIL 5, 2016
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 amended, 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, and in which the member made,
participated in making, o r in any way attempted to use
his or her official position to influence the decision, 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 involved, and in
which the member made, participated in making, or in any way
attempted to use his or her official position to influence the
decision, 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 that are at least
$5,000 in aggregate made at the behest of a member of the board. The
bill would make various findings and declaration.
declarations.
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
commission 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, as well as parties' agents, 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, and
their agents 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 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) (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 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. For purposes of
this paragraph, "suggest" means to mention or imply as a possibility
or put forward for consideration. This paragraph shall apply to
a member only with respect to an adjudicatory proceeding in which
that member made, participated in making, or in any way attempted to
use his or her official position to influence the
decision.
(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. This
paragraph shall apply to a member only with respect to an
adjudicatory proceeding in which that member made,
participated in making, or in any way attempted to use his or her
official position to influence the decision.
(d) (1) Notwithstanding paragraph (1) of subdivision
(c), if a member receives a contribution which would
otherwise require a contribution shall not be deemed
received by a member for the purposes of disqualification under
subdivision (c), and he or she if the member
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.
board.
(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
the member 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. the member shall be deemed not to have
accepted the contribution.
(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 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
involved, and in which the member made, participated in making,
or in any way attempted to use his or her official position to
influence the decision, 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 pursuant to that section, except
that "contribution" shall also include a payment or payments made at
the behest of a member of the board principally for legislative,
governmental, or charitable purposes when that payment is or those
payments are at least five thousand dollars ($5,000) in the aggregate
and is or are 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.
(3) "Party" means any person who is the subject of an adjudicatory
proceeding pending before the board.
(4) "Participant" means any person 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.
(5) "Agent" means any person 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.
(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.
(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. 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 of 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.