BILL ANALYSIS Ó
SB 816
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6Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 816
(Hill) - As Amended April 26, 2016
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|Policy |Elections and Redistricting |Vote:|4 - 2 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill lowers, from $250 to $100, the campaign contribution
threshold that triggers conflict of interest requirements for
members of the Board of Equalization (BOE), under the Quentin L.
Kopp Conflict of Interest Act of 1990 (Kopp Act).
FISCAL EFFECT:
Additional costs for BOE members to track contributions under
the lower conflict of interest threshold and one-time
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administrative costs for the BOE to notify taxpayers,
participants and agents of the revised threshold and to amend
corresponding regulations will be minor and absorbable.
COMMENTS:
1)The Kopp Act (named for former Senator Quentin Kopp) prohibits
a member of the BOE from participating in an adjudicatory
proceeding if the member knows, or has reason to know, that he
or she received contributions totaling $250 or more in the 12
months prior to the proceeding from a party, participant, or
agent of a party or participant, as specified. Members are
permitted to participate in the decision, however, if they
return the contribution within a specified time period. The
argument for enacting the Kopp Act was that the BOE should be
subject to rules similar to those that applied to appointed
boards and commissions (under the Levine Act) because of the
BOE's quasi-judicial role as the appellate body for state tax
appeals. Unlike the Levine Act, the Kopp Act is not part of
the PRA, and is neither administered nor enforced by the FPPC.
2)Purpose. This bill reduces the threshold Kopp Act threshold
from $250 to $100, thus matching the minimum contribution
amount that is reportable under the state's campaign finance
laws. In support, BOE President Fiona Ma states, "these are
reasonable restrictions that will strengthen public confidence
that the Board decides cases based on facts and the law,
independent of inappropriate influence."
3)Strategic Disqualification Under the Kopp Act. Under the
BOE's Regulation 5550, any three members of the BOE constitute
a quorum, except in specified circumstances, and a majority of
the quorum is required to approve or disapprove taxpayer
appeals and other matters. As a result, if two members of the
BOE are disqualified under the Kopp Act from participating in
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a proceeding, it would take only two of the remaining three
members to reach a decision in the proceeding. The fact that
disqualifications due to the Kopp Act can reduce the number of
votes necessary for the BOE to reach a decision has led to
concern that parties and participants can strategically
disqualify members of the BOE from certain proceedings by
making campaign contributions of $250 or more to those
members.
4)Opposition. BOE Member Jerome Horton is opposed to lowering
the threshold, arguing in part that "It subjects a subset of
small businesses, who previously participated in the political
process, to civil and criminal penalties in Government Code
section 15626(i) and violates their due process if they fail
to report even minimal amounts (or in-kind donations)
aggregating to $100 within 30 days of making the
contribution."
5)Related Legislation. AB 1828 (Dodd), which eliminated the $250
Kopp Act threshold and expanded the conflict of interest
provisions to apply to contributions made in the three months
after a proceeding before the BOE and to include behested
payments aggregating $5,000 or more, was held on this
committee's Suspense file in May.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
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