Amended in Senate June 29, 2015

Senate BillNo. 259


Introduced by Senator Bates

February 18, 2015


An act to amendbegin delete Section 921 of the Business and Professions Code, relating to healing arts.end deletebegin insert Sections 64, 480.1, 480.2, and 482 of, to add Section 480.9 to, and to add and repeal Section 486 of, the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 259, as amended, Bates. begin deleteHealth care professionals. end deletebegin insertProperty taxation: change in ownership. end insert

begin insert

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.

end insert
begin insert

Existing law specifies those circumstances in which the transfer of ownership interests in a corporation, partnership, limited liability company, or other legal entity results in a change in ownership of the real property owned by that entity, and generally provides that a change in ownership as so described occurs if a legal entity or other person obtains a controlling or majority ownership interest in the legal entity. Existing law requires the Franchise Tax Board to include a question on returns for partnerships, banks, and corporations to assist in the determination of whether a change in ownership under the circumstances described above has occurred.

end insert
begin insert

This bill would additionally specify that if 90% or more of the direct or indirect ownership interests in a legal entity are sold or transferred in a single transaction, as defined, the real property owned by that legal entity has changed ownership whether or not any one legal entity or person that is a party to the transaction obtains control, as defined. This bill would require the Franchise Tax Board to include an additional question on returns for partnerships, banks, and corporations to assist in the determination of whether a change in ownership as so described has occurred. This bill would require the State Board of Equalization to prescribe regulations as may be necessary to carry out the purposes of this act. This bill would also require the State Board of Equalization to report to the Legislature, no later than January 1, 2021, regarding the implementation of these changes in ownership, including, but not limited to, the economic impact and frequency of reassessments of real property owned by legal entities.

end insert
begin insert

Existing law requires, upon a change in control or change in ownership of a legal entity that owns an interest in real property in this state, or when requested by the State Board of Equalization, that the person or legal entity acquiring ownership or control, or the legal entity that has undergone a change in ownership, file a change in ownership statement with the board, as specified. Existing law requires a penalty of 10% of the taxes applicable to the new base year value, as specified, or 10% of the current year’s taxes on the property, as specified, to be added to the assessment made on the roll if a person or legal entity required to file a change in ownership statement fails to do so.

end insert
begin insert

This bill would require a person or legal entity acquiring ownership interests in a legal entity, if 90% or more of the ownership interests in the legal entity are sold or transferred, as described above, to file a change in ownership statement signed under penalty of perjury with the State Board of Equalization. This bill would increase the penalties for failure to file a change in ownership statement, as described above, from 10% to 15%, and would provide that the penalty shall apply for failure to file a complete statement with the State Board of Equalization following a transfer of legal entity ownership interests.

end insert
begin insert

This bill would require the State Board of Equalization to notify assessors if a change in control or a change in ownership of a legal entity has occurred.

end insert
begin insert

By expanding the crime of perjury and by imposing new duties upon local county officials with respect to changes in ownership, this bill would impose a state-mandated local program.

end insert
begin insert

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.

end insert
begin insert

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

end insert
begin insert

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin delete

Existing law, the Health Care Professional Disaster Response Act, states findings of the Legislature regarding the shortage of qualified health care practitioners during times of national or state disasters, and allows a physician and surgeon, whose license has been expired for less than 5 years and who meets specified criteria, to obtain a license without paying fees.

end delete
begin delete

This bill would make a nonsubstantive change to those provisions.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 64 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
2amended to read:end insert

3

64.  

(a) Except as provided in subdivision (i) of Section 61 and
4subdivisions (c) andbegin delete (d) of this section,end deletebegin insert (d),end insert the purchase or transfer
5of ownership interests in legal entities, such as corporate stock or
6partnership or limited liability company interests,begin delete shall not be
7deemed toend delete
begin insert does notend insert constitute a transfer of the real property of the
8legal entity. This subdivisionbegin delete is applicableend deletebegin insert appliesend insert to the purchase
9or transfer of ownership interests in a partnership without regard
10to whether it is a continuing or a dissolved partnership.

11(b) Any corporate reorganization, where all of the corporations
12involved are members of an affiliated group, and that qualifies as
13a reorganization under Section 368 of the United States Internal
14Revenue Code and that is accepted as a nontaxable event by similar
15California statutes, or any transfer of real property among members
16of an affiliated group, or any reorganization of farm credit
P4    1institutions pursuant to the federal Farm Credit Act of 1971 (Public
2Law 92-181), as amended, shall not be a change of ownership.
3The taxpayer shall furnish proof, under penalty of perjury, to the
4assessor that the transfer meets the requirements of this subdivision.

5For purposes of this subdivision, “affiliated group” means one
6 or more chains of corporations connected through stock ownership
7with a common parent corporation if both of the following
8conditions are met:

9(1) One hundred percent of the voting stock, exclusive of any
10share owned by directors, of each of the corporations, except the
11parent corporation, is owned by one or more of the other
12corporations.

13(2) The common parent corporation owns, directly, 100 percent
14of the voting stock, exclusive of any shares owned by directors,
15of at least one of the other corporations.

16(c) (1) begin insert(A)end insertbegin insertend insertWhen a corporation, partnership, limited liability
17company, other legal entity, or any other person obtains control
18through direct or indirect ownership or control of more than 50
19percent of the voting stock of any corporation, or obtains a majority
20ownership interest in any partnership, limited liability company,
21or other legal entity through the purchase or transfer of corporate
22stock, partnership, or limited liability company interest, or
23ownership interests in other legal entities, including any purchase
24or transfer of 50 percent or less of the ownership interest through
25which control or a majority ownership interest is obtained, the
26purchase or transfer of that stock or other interest shall be a change
27of ownership of the real property owned by the corporation,
28partnership, limited liability company, or other legal entity in which
29the controlling interest is obtained.

begin insert

30(B) (i) When 90 percent or more of the direct or indirect
31ownership interests in a legal entity are sold or transferred in a
32single transaction, the purchase or transfer of the ownership
33interests is a change in ownership of the real property owned by
34the legal entity, including the real property owned by legal entities
35under its control, whether or not any one legal entity or person
36that is a party to the transaction obtains control, except when the
37sale or transfer qualifies for an exclusion from change in ownership
38under any other law or does not result in a change in ownership
39under any other law.

end insert
begin insert

40(ii) For purposes of this subparagraph:

end insert
begin insert

P5    1(I) “Control” means control as described in subparagraph (A).

end insert
begin insert

2(II) “Legal entity” means a corporation, partnership, limited
3liability company, or other legal entity.

end insert
begin insert

4(III) “Ownership interests” means corporate voting stock,
5 partnership capital and profits interests, limited liability company
6membership interests, and other ownership interests in legal
7entities.

end insert
begin insert

8(IV) “Single transaction” means a plan consisting of one or
9more sales or transfers of ownership interests that occur on or
10after January 1, 2016. For purposes of this subclause, it shall be
11rebuttably presumed that a sale or transfer is part of a single
12transaction if either of the following occur:

end insert
begin insert

13(ia) The transferees are persons described in Section 267(b) of
14Title 26 of the United States Code.

end insert
begin insert

15(ib) The sales or transfers occur with a 36-month period,
16commencing on the date of the first sale or transfer of the
17ownership interests that occurs on or after January 1, 2016.

end insert
begin insert

18(V) “Sold or transferred” does not include either of the
19following:

end insert
begin insert

20(ia) A transfer of ownership interests that occurs upon death,
21without payment for the ownership interests, other than taxes due
22with respect to the transfer, paid by or on behalf of the transferee.

end insert
begin insert

23(ib) A sale of stock or interests of a publicly traded corporation
24or a publicly traded partnership in the regular course of a trading
25activity on an established securities market, as defined in Section
261.7704-1(b) of Title 26 of the Code of Federal Regulations, unless
27shares are acquired as part of a merger, acquisition, private equity
28buyout, transfer of partnership shares, or any other means by
29which a change in ownership would otherwise occur pursuant to
30this subparagraph.

end insert

31(2) On or after January 1, 1996, when an owner of a majority
32ownership interest in any partnership obtains all of the remaining
33ownership interests in that partnership or otherwise becomes the
34sole partner, the purchase or transfer of the minority interests,
35subject to the appropriate application of the step-transaction
36doctrine, shall not be a change in ownership of the real property
37owned by the partnership.

begin insert

38(3) For purposes of this section, indirect ownership or transfer
39of ownership interests shall be measured proportionately.

end insert

P6    1(d) If property is transferred on or after March 1, 1975, to a
2legal entity in a transaction excluded from change in ownership
3by paragraph (2) of subdivision (a) of Section 62, then the persons
4holding ownership interests in that legal entity immediately after
5the transfer shall be considered the “original coowners.” Whenever
6shares or other ownership interests representing cumulatively more
7than 50 percent of the total interests in the entity are transferred
8by any of the original coowners in one or more transactions, a
9change in ownership of that real property owned by the legal entity
10shall have occurred, and the property that was previously excluded
11from change in ownership under the provisions of paragraph (2)
12of subdivision (a) of Section 62 shall be reappraised.

13The date of reappraisal shall be the date of the transfer of the
14ownership interest representing individually or cumulatively more
15than 50 percent of the interests in the entity.

16A transfer of shares or other ownership interests that results in
17a change in control of a corporation, partnership, limited liability
18company, or any other legal entity is subject to reappraisal as
19provided in subdivision (c) rather than this subdivision.

20(e) begin insert(1)end insertbegin insertend insertTo assist in the determination of whether a change of
21ownership has occurred under subdivisions (c) and (d), the
22Franchise Tax Board shall include a question in substantially the
23following form on returns for partnerships, banks, and corporations
24(except tax-exempt organizations):

begin delete

25If

end delete

26begin insert(A)end insertbegin insertend insertbegin insertIfend insert the corporation (or partnership or limited liability
27company) owns real property in California, has cumulatively more
28than 50 percent of the voting stock (or more than 50 percent of
29total interest in both partnership or limited liability company capital
30and partnership or limited liability company profits) (1) been
31transferred by the corporation (or partnership or limited liability
32company) since March 1, 1975, or (2) been acquired by another
33legal entity or person during the year? (See instructions.)

begin insert

34(B) If the corporation (or partnership or limited liability
35company) owns real property in California, has 90 percent or
36more of the direct or indirect ownership interests in that legal
37entity been sold or transferred (1) in a single transaction, or (2)
38amongst persons described in Section 267(b) of Title 26 of the
39United States Code, or (3) in multiple transactions (other than
P7    1those occurring on an established securities market) within a
236-month period? (See instructions.)

end insert
begin delete

3If

end delete

4begin insert(2)end insertbegin insertend insertbegin insertIfend insert the entity answers “yes” tobegin delete (1) or (2) in the above question,end delete
5begin insert any of the above questions,end insert then the Franchise Tax Board shall
6furnish the names and addresses of that entity and of the stock or
7partnership or limited liability company ownership interest
8transferees to the State Board of Equalization.

begin insert

9(f) For purposes of this section, ownership interests counted to
10determine that a change in control or change in ownership of a
11legal entity has occurred shall not be counted again in determining
12whether any other sale or transfer of ownership interests results
13in a change in ownership of the real property reassessed as a result
14of the change in control or change in ownership.

end insert
begin insert

15(g) The board shall prescribe regulations as may be necessary
16to carry out the purposes of the act adding this subdivision.

end insert
17begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 480.1 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
18amended to read:end insert

19

480.1.  

(a) Whenever there is a change in control of any
20corporation, partnership, limited liability company, or other legal
21entity, as defined inbegin insert subparagraph (A) of paragraph (1) ofend insert
22 subdivision (c) of Section 64, a signed change in ownership
23statement as provided for in subdivision (b), shall be filed by the
24person or legal entity acquiring ownership control of the
25corporation, partnership, limited liability company, or other legal
26entity with the board at its office in Sacramento within 90 days
27from the date of the change in control of the corporation,
28partnership, limited liability company, or other legal entity. The
29statement shall list all counties in which the corporation,
30partnership, limited liability company, or legal entity owns real
31property.

32(b) The change in ownership statement as required pursuant to
33subdivision (a), shall be declared to be true under penalty of perjury
34and shall givebegin delete suchend deletebegin insert thatend insert information relative to the ownership
35control acquisition transaction as the board shall prescribe after
36consultation with the California Assessors’ Association. The
37information shall include, but not be limited to, a description of
38the property owned by the corporation, partnership, limited liability
39company, or other legal entity, the parties to the transaction, and
40the date of the ownership control acquisition. The change in
P8    1ownership statement shall not include any question which is not
2germane to the assessment function. The statement shall contain
3a notice that is printed, with the title in at least 12-point boldface
4type and the body in at least 8-point boldface type, in the following
5form:

67“Important Notice”
8

9“The law requires any person or legal entity acquiring ownership
10control in any corporation, partnership, limited liability company,
11or other legal entity owning real property in California subject to
12local property taxation to complete and file a change in ownership
13statement with the State Board of Equalization at its office in
14Sacramento. The change in ownership statement must be filed
15within 90 days from the date of the change in control of a
16corporation, partnership, limited liability company, or other legal
17entity. The law further requires that a change in ownership
18statement be completed and filed whenever a written request is
19made therefor by the State Board of Equalization, regardless of
20whether a change in control of the legal entity has occurred. The
21failure to file a change in ownership statement within 90 days from
22the earlier of the date of the change in control of the corporation,
23partnership, limited liability company, or other legal entity, or the
24date of a written request by the State Board of Equalization, results
25in a penalty ofbegin delete 10end deletebegin insert 15end insert percent of the taxes applicable to the new
26base year value reflecting the change in control of the real property
27owned by the corporation, partnership, limited liability company,
28or legal entity (orbegin delete 10end deletebegin insert 15end insert percent of the current year’s taxes on that
29property if no change in control occurred). This penalty will be
30added to the assessment roll and shall be collected like any other
31delinquent property taxes, and be subject to the same penalties for
32nonpayment.”

33(c) In the case of a corporation, the change in ownership
34statement shall be signed either by an officer of the corporation or
35an employee or agent who has been designated in writing by the
36board of directors to sign such statements on behalf of the
37corporation. In the case of a partnership, limited liability company,
38or other legal entity, the statement shall be signed by an officer,
39partner, manager, or an employee or agent who has been designated
P9    1in writing by the partnership, limited liability company, or legal
2entity.

3(d) No person or entity acting for or on behalf of the parties to
4a transfer of real property shall incur liability for the consequences
5of assistance rendered to the transferee in preparation of any change
6in ownership statement, and no action may be brought or
7maintained against any person or entity as a result of that
8assistance.

9Nothing in this section shall create a duty, either directly or by
10implication, that such assistance be rendered by any person or
11entity acting for or on behalf of parties to a transfer of real property.

12(e) The board or assessors may inspect any and all records and
13documents of a corporation, partnership, limited liability company,
14or legal entity to ascertain whether a change in control as defined
15inbegin insert subparagraph (A) of paragraph (1) ofend insert subdivision (c) of Section
1664 has occurred. The corporation, partnership, limited liability
17company, or legal entitybegin delete shallend deletebegin insert shall,end insert upon request, make those
18documents available to the board during normal business hours.

19begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 480.2 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
20amended to read:end insert

21

480.2.  

(a) Whenever there is a change in ownership of any
22corporation, partnership, limited liability company, or other legal
23entity, as defined inbegin insert subparagraph (B) of paragraph (1) of
24subdivision (c) orend insert
subdivision (d) of Section 64, a signed change
25in ownership statement as provided in subdivision (b) shall be filed
26by the corporation, partnership, limited liability company, or other
27legal entity with the board at its office in Sacramento within 90
28days from the date of the change in ownership of the corporation,
29partnership, limited liability company, or other legal entity. The
30statement shall list all counties in which the corporation,
31partnership, limited liability company, or legal entity owns real
32property.

33(b) The change in ownership statement required pursuant to
34subdivision (a) shall be declared to be truebegin delete andend delete under penalty of
35perjury and shall givebegin delete suchend deletebegin insert thatend insert information relative to the
36ownership interest acquisition transaction as the board shall
37prescribe after consultation with the California Assessors’
38Association. The information shall include, but not be limited to,
39a description of the property owned by the corporation, partnership,
40limited liability company, or other legal entity, the parties to the
P10   1transaction, the date of the ownership interest acquisition, and a
2listing of the “original coowners” of the corporation, partnership,
3limited liability company, or other legal entity prior to the
4transaction. The change in ownership statement shall not include
5any question which is not germane to the assessment function. The
6statement shall contain a notice that is printed, with the title in at
7least 12-point boldface type and the body in at least 8-point
8boldface type, in the following form:

910“Important Notice”
11

12“The law requires any corporation, partnership, limited liability
13company, or other legal entity owning real property in California
14subject to local property taxation and transferring shares or other
15ownership interest in such legal entity which constitute a change
16in ownership pursuant tobegin insert subparagraph (B) of paragraph (1) of
17subdivision (c) orend insert
subdivision (d) of Section 64 of the Revenue
18and Taxation Code to complete and file a change in ownership
19statement with the State Board of Equalization at its office in
20Sacramento. The change in ownership statement must be filed
21within 90 days from the date that shares or other ownership
22interests representingbegin insert either (1)end insert cumulatively more than 50 percent
23of the total control or ownership interests in the entity are
24transferred by any of the original coowners in one or more
25transactionsbegin insert, or (2) when 90 percent or more of the direct or
26indirect ownership interests in a legal entity are sold or transferred
27in a single transaction, as defined in subparagraph (B) of
28paragraph (1) of subdivision (c) of Section 64end insert
. The law further
29requires that a change in ownership statement be completed and
30filed whenever a written request is made therefor by the State
31Board of Equalization, regardless of whether a change in ownership
32of the legal entity has occurred. The failure to file a change in
33ownership statement within 90 days from the earlier of the date of
34the change in ownership of the corporation, partnership, limited
35liability company, or other legal entity, or the date of a written
36request by thebegin insert Stateend insert Board of Equalization, results in a penalty of
37begin delete 10end deletebegin insert 15end insert percent of the taxes applicable to the new base year value
38reflecting the change in ownership of the real property owned by
39the corporation, partnership, limited liability company, or legal
40entity (orbegin delete 10end deletebegin insert 15end insert percent of the current year’s taxes on that real
P11   1property if no change in ownership occurred). This penalty will
2be added to the assessment roll and shall be collected like any
3other delinquent property taxes, and be subject to the same
4penalties for nonpayment.”

5(c) In the case of a corporation, the change in ownership
6statement shall be signed either by an officer of the corporation or
7an employee or agent who has been designated in writing by the
8board of directors to sign such statements on behalf of the
9corporation. In the case of a partnership, limited liability company,
10or other legal entity, the statement shall be signed by an officer,
11partner, manager, or an employee or agent who has been designated
12in writing by the partnership, limited liability company, or legal
13entity.

14(d) No person or entity acting for or on behalf of the parties to
15a transfer of real property shall incur liability for the consequences
16of assistance rendered to the transferee in preparation of any change
17in ownership statement, and no action may be brought or
18maintained against any person or entity as a result of that
19assistance.

20Nothing in this section shall create a duty, either directly or by
21implication, that such assistance be rendered by any person or
22entity acting for or on behalf of parties to a transfer of real property.

23(e) The board or assessors may inspect any and all records and
24documents of a corporation, partnership, limited liability company,
25or legal entity to ascertain whether a change in ownership as
26defined inbegin insert subparagraph (B) of paragraph (1) of subdivision (c)
27orend insert
subdivision (d) of Section 64 has occurred. The corporation,
28partnership, limited liability company, or legal entity shall upon
29request, make those documents available to the board during
30normal business hours.

31begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 480.9 is added to the end insertbegin insertRevenue and Taxation
32Code
end insert
begin insert, to read:end insert

begin insert
33

begin insert480.9.end insert  

The board shall notify assessors if a change in control
34or a change in ownership described in Section 64 has occurred.

end insert
35begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 482 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
36amended to read:end insert

37

482.  

(a) (1) If a person or legal entity required to file a
38statement described in Section 480 fails to do so within 90 days
39from the date a written request is mailed by the assessor, a penalty
40of either: (A) one hundred dollars ($100), or (B) 10 percent of the
P12   1taxes applicable to the new base year value reflecting the change
2in ownership of the real property or manufactured home, whichever
3is greater, but not to exceed five thousand dollars ($5,000) if the
4property is eligible for the homeowners’ exemption or twenty
5thousand dollars ($20,000) if the property is not eligible for the
6homeowners’ exemption if the failure to file was not willful, shall,
7except as otherwise provided in this section, be added to the
8assessment made on the roll. The penalty shall apply for failure to
9file a complete change in ownership statement notwithstanding
10the fact that the assessor determines that no change in ownership
11has occurred as defined in Chapter 2 (commencing with Section
1260) of Part 0.5. The penalty may also be applied if after a request
13the transferee files an incomplete statement and does not supply
14the missing information upon a second request.

15(2) The assessor shall mail the written request specified in
16paragraph (1) to the mailing address of the transferee as provided
17by subdivision (f).

18(b) If a person or legal entity required to file a statement
19described in Section 480.1 or 480.2 fails to do so within 90 days
20from the earlier of (1) the date of the change in control or the
21change in ownership of the corporation, partnership, limited
22liability company, or other legal entity, or (2) the date of a written
23request by the State Board of Equalization, a penalty ofbegin delete 10end deletebegin insert 15end insert
24 percent of the taxes applicable to the new base year value reflecting
25the change in control or change in ownership of the real property
26owned by the corporation, partnership, or legal entity, orbegin delete 10end deletebegin insert 15end insert
27 percent of the current year’s taxes on that property if no change
28in control or change in ownership occurred, shall be added by the
29county assessor to the assessment made on the roll. The penalty
30shall apply for failure to file a complete statement with the board
31begin insert following a transfer of legal entity ownership interestsend insert
32 notwithstanding the fact that the board determines that no change
33in control or change in ownership has occurred as defined in
34subdivision (c) or (d) of Section 64. The penalty may also be
35applied if after a request the person or legal entity files an
36incomplete statement and does not supply the missing information
37upon that second request to complete the statement. That penalty
38shall be in lieu of the penalty provisions of subdivision (a).

39(c) The penalty for failure to file a timely statement pursuant to
40Sections 480, 480.1, and 480.2 for any one transfer may be imposed
P13   1only one time, even though the assessor may initiate a request as
2often as he or she deems necessary.

3(d) The penalty shall be added to the roll in the same manner
4as a special assessment and treated, collected, and subject to the
5same penalties for the delinquency as all other taxes on the roll in
6which it is entered.

7(1) When the transfer to be reported under this section is of a
8portion of a property or parcel appearing on the roll during the
9fiscal year in which the 90-day period expires, the current year’s
10taxes shall be prorated so the penalty will be computed on the
11proportion of property which has transferred.

12(2) Any penalty added to the roll pursuant to this section
13between January 1 and June 30 may be entered either on the
14unsecured roll or the roll being prepared. After January 1, the
15penalty may be added to the current roll only with the approval of
16the tax collector.

17(3) If the property is transferred or conveyed to a bona fide
18purchaser for value or becomes subject to a lien of a bona fide
19encumbrancer for value after the transfer of ownership resulting
20in the imposition of the penalty and before the enrollment of the
21penalty, the penalty shall be entered on the unsecured roll in the
22name of the transferee whose failure to file the change in ownership
23 statement resulted in the imposition of the penalty.

24(e) When a penalty imposed pursuant to this section is entered
25on the unsecured roll, the tax collector may immediately file a
26certificate authorized by Section 2191.3.

27(f) Notice of any penalty added to either the secured or
28unsecured roll pursuant to this section, which shall identify the
29parcel or parcels for which the penalty is assessed, and the written
30request to file a statement specified in subdivision (a), which shall
31identify the real property or manufactured home for which the
32statement is required to be filed, shall be mailed by the assessor
33to the transferee at his or her address contained in any recorded
34instrument or document evidencing a transfer of an interest in real
35property or manufactured home or the address specified for mailing
36tax information contained in the preliminary change in ownership
37report. If the transferee has subsequently notified the assessor of
38a change in address for mailing tax information, the assessor shall
39mail the notice of any penalty, or the written request to file a
40statement specified in subdivision (a), to this address. If there is
P14   1no address specified for mailing tax information on either the
2recorded instrument, the document evidencing a transfer of an
3interest in real property or manufactured home, or on the filed
4preliminary change in ownership report, and the transferee has not
5provided an address for purposes of mailing tax information, the
6assessor shall mail the notice of any penalty, or the written request
7to file a statement specified in subdivision (a), to the transferee at
8any address reasonably known to the assessor.

9begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 486 is added to the end insertbegin insertRevenue and Taxation
10Code
end insert
begin insert, to read:end insert

begin insert
11

begin insert486.end insert  

(a) The board shall report to the Legislature, no later
12than January 1, 2021, regarding the implementation of
13subparagraph (B) of paragraph (1) of subdivision (c) of Section
1464, including, but not limited to, the economic impact and
15frequency of reassessments of real property owned by legal entities.

16(b) (1) A report submitted pursuant to subdivision (a) shall be
17submitted in compliance with Section 9795 of the Government
18Code.

19(2) Pursuant to Section 10231.5 of the Government Code, this
20section is repealed on January 1, 2025.

end insert
21begin insert

begin insertSEC. 7.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution for certain
23costs that may be incurred by a local agency or school district
24because, in that regard, this act creates a new crime or infraction,
25eliminates a crime or infraction, or changes the penalty for a crime
26or infraction, within the meaning of Section 17556 of the
27Government Code, or changes the definition of a crime within the
28meaning of Section 6 of Article XIII B of the California
29Constitution.

end insert
begin insert

30However, if the Commission on State Mandates determines that
31this act contains other costs mandated by the state, reimbursement
32to local agencies and school districts for those costs shall be made
33pursuant to Part 7 (commencing with Section 17500) of Division
344 of Title 2 of the Government Code.

end insert
35begin insert

begin insertSEC. 8.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
36immediate preservation of the public peace, health, or safety within
37the meaning of Article IV of the Constitution and shall go into
38immediate effect. The facts constituting the necessity are:

end insert
begin insert

39In order to close a loophole to provide fair and equitable tax
40treatment for all individuals in this state, as all property holders
P15   1should be treated equally with regards to the imposition of property
2taxes, it is necessary that this act take effect immediately.

end insert
begin delete
3

SECTION 1.  

Section 921 of the Business and Professions Code
4 is amended to read:

5

921.  

(a) The Legislature finds and declares the following:

6(1) In times of national or state disasters, a shortage of qualified
7health care practitioners may exist in areas throughout the state
8where they are desperately required to respond to public health
9emergencies.

10(2) Health care practitioners with lapsed or inactive licenses
11could potentially serve in those areas where a shortage of qualified
12health care practitioners exists, if licensing requirements were
13streamlined and fees curtailed.

14(b) Therefore, it is the intent of the Legislature to address these
15matters through the provisions of the Health Care Professional
16Disaster Response Act.

end delete


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