BILL ANALYSIS
AB 824
Page 1
ASSEMBLY THIRD READING
AB 824 (Harkey)
As Amended April 29, 2009
Majority vote
REVENUE & TAXATION 9-0 APPROPRIATIONS 16-0
-----------------------------------------------------------------
|Ayes:|DeVore, Beall, Coto, |Ayes:|De Leon, Nielsen, |
| |Harkey, Ma, Nielsen, | |Ammiano, |
| |Portantino, Saldana, | |Charles Calderon, Davis, |
| |Caballero | |Duvall, Krekorian, Hall, |
| | | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : Allows an assessment appeals board (board) to hear and
decide property tax appeals filed in another county by a person
who has a conflict of interest with the board in his/her county.
Extends the application of existing conflict-of-interest
provisions to certain employees of the office of county counsel.
Specifically, this bill :
1)Prohibits employees of the office of county counsel who advise
the board or represent the assessor before the board from
representing an applicant for compensation on any application
for equalization filed pursuant to Revenue & Taxation Code
(R&TC) Section 1603.
2)Requires those county counsel employees to notify the clerk
immediately upon filing an application on his/her own behalf,
or upon his/her decision to represent his/her spouse, parent
or child in an assessment appeal.
3)Authorizes the chief clerk of a board, at his/her discretion,
to refer to a special alternate board the applications for
equalization filed by a member or an alternate member of the
regular board or the applications in which that member
represents his/her spouse, parent, or child.
4)Specifies that a special alternate board must consist of three
AB 824
Page 2
special alternate board members who are qualified and in good
standing in another county.
5)Provides that a special alternative board member may hear
applications for equalization set forth in the transmittal
document prepared by the clerk of the board of the county in
which the application was filed.
6)Consolidates and streamlines the compensation prohibition
provisions, notification requirements and references to
conflict-of-interest appeals subject to a special alternate
assessment appeals panel.
7)Provides that, if the Commission on State Mandates determines
that this bill contains costs mandated by the state,
reimbursement for those costs shall be made as specified.
EXISTING LAW :
1)Contains various conflict of interest provisions intended to
ensure the integrity and impartiality of decisions rendered by
a county board.
2)Prohibits sitting members of the board from knowingly
participating in any appeal proceeding if they have an
interest in the subject matter that could reasonably be
expected to influence the impartiality of their judgment in
the proceeding.
3)Prohibits specified employees, members, alternate members, and
hearing officers of the board from representing any person
filing an appeal for compensation before that board. Those
specified employees include employees of the office of the
clerk of the county board of equalization (BOE) and county
assessment appeals board.
4)Requires those specified employees, members, alternate
members, and hearing offices of the board to notify the clerk
of the board when they file an appeal application on their own
behalf, or when they decide to represent a spouse, parent, or
child in an assessment appeal before the board.
5)Requires that those types of appeals be heard by a special
board panel consisting of three special alternate members
AB 824
Page 3
appointed by the presiding judge of the superior court in the
county where the application is filed.
FISCAL EFFECT : The state BOE estimates that this bill would not
impact state revenues.
COMMENTS : The author states that, "AB 824 will provide counties
with a common-sense solution to enable a quick, cost effective
approach to establishing a special board without having to
appoint a special board for each separate application filed.
This is a voluntary option for both counties involved. Enabling
counties with an efficient new method to address potential
conflicts of interest in the appeals arena benefits both
taxpayers and counties alike. This bill enhances the likelihood
of a sound decision on the matter before the board."
This bill is sponsored by the California Association of Clerks
and Election Officials. The sponsor states that the purpose of
this bill is to correct an oversight created in 1999 by SB 1231
(Committee on Revenue and Taxation), Chapter 941, Statutes of
1999, that required the appeals of assessment hearing officers
and employees of the clerk's office to be heard by a special
alternate assessment board. AB 824 is intended to allow the use
of another county's already assembled operating board,
guaranteeing that the members of the special panel would be
individuals who are qualified and experienced in adjudicating
property tax assessment appeals. The program would be voluntary
for both counties involved, and reimbursement for travel and
other expenses would be negotiated between the participating
counties.
The proponents of this bill argue that the proposed changes to
existing law would resolve any possible appearance of conflict
or impropriety issues in the appeals process and will improve
and streamline the assessment appeal process to ensure
finalization of appeals within the statutory two-year limit.
Committee staff notes all of the following:
1)Local boards are established to resolve disputes between
county assessors and property owners. All counties in
California provide for assessment appeals proceedings. In 19
counties, the county boards of supervisors hear the appeals.
In the other 39 counties, board members are appointed by the
AB 824
Page 4
local boards of supervisors. A local county board of
supervisors may appoint the members to the local board by
utilizing one of two statutorily prescribed methods. The
board of supervisors may nominate individuals to the
assessment board and the presiding judge of the superior court
of the count would select three members. (R&TC Section 1622).
Alternatively, the board of supervisors may directly appoint
individuals to the assessments board. (R&TC Section 1622.1).
Appointments last for a three year term, and members may be
reappointed an unlimited number of terms. While a board may
be comprised of either three or five members, individual
appeals are only heard by a three-member panel.
2)Basic conflict of interest provisions applicable to assessors
and members of the boards have been in place since the 1960s.
For example, existing law prohibits the county assessor and
the employees of the assessor's office from engaging in any
gainful profession, trade, business or occupation that is
incompatible or involves a conflict of interest with their
duties as officers and employees of the county. (R&TC Section
1365). The conflict-of-interest provisions also include the
prohibition on compensation and gifts from private persons or
firms for advice or other services relating to the taxation or
assessment of property. In 1999, SB 1231 imposed additional
compensation restrictions and notification requirements for
employees of the clerk's office of a county BOE or a county
board. The assessment hearing officers are also subject to
the same restrictions. It appears, however, that neither the
members nor employees of county boards of supervisors that act
as local BOEs are subject to similar conflict of interest
restrictions and requirements.
3)Existing law requires that assessment appeals applications
filed by specific individuals be heard by an alternate board
panel. The alternate board panel must be comprised of three
special alternate board members who are appointed by order of
the presiding judge of the superior court in the county in
which the application is filed. An alternate board member is
authorized to hear only the application or applications for
equalization that are specified in the court order appointing
the member.
This bill would grant discretion to the clerk of the regular
board to set applications filed by specific individuals for a
AB 824
Page 5
hearing before an alternate board panel, where the panel is
comprised of the members appointed by a court order in another
county in California. Those special alternate members would
be able to hear applications listed in the transmittal
document prepared by the clerk. This bill authorizes clerks
to decide which applications for equalization warrant a
creation of a new alternate board in their respective counties
and which alternate boards could be used to hear special
cases. However, this bill does not confer any authority on
the clerks to appoint the alternate board panel nor does it
delegate to the clerks the appointment power vested in a
superior court judge. Further, the authority granted to
clerks under this bill must be exercised within the confines
of existing conflict of interest provisions and is of a
ministerial nature only. In other words, this bill would
allow the clerk to use an already assembled alternate board of
another county and would eliminate the need for the presiding
judge in the county where the application was filed to create
a special alternate board for individual cases.
Analysis Prepared by : Oksana Jaffe / REV. & TAX. / (916)
319-2098
FN: 0000900