BILL ANALYSIS                                                                                                                                                                                                    




            SENATE REVENUE & TAXATION COMMITTEE

            Senator Lois Wolk, Chair

                                                      AB 824 - Harkey

                                                Amended: April 29, 2009

                                                                       

            Hearing: July 8, 2009                           Fiscal: Yes




            SUMMARY:  Consolidates Conflict of Interest Provisions  
                      Affecting Specified Individuals Participating in  
                      Property Tax Appeals


                      

                 EXISTING LAW (California Constitution) provides that  
            each County Board of Supervisors, or an assessment appeals  
            board of its own creation, shall constitute the county  
            board of equalization, which equalizes the values of all  
            property on the assessment roll by adjusting individual  
            assessments.  Currently, 19 California county boards of  
            supervisors perform this duty.  State Law allows counties  
            to have up to five of these boards to hear and adjudicate  
            assessment appeals, constituted of members selected by the  
            presiding judge of the superior court and nominated by the  
            County Board of Supervisors, or selected directly by the  
            Board.  

                 EXISTING LAW sets forth several conflict of interest  
            laws for assessment appeals boards (updated most recently  
            by SB 1231, Committee on Revenue and Taxation, 1999),  
            including:

                             An assessment appeal filed by a member of  
                      alternate member is adjudicated by a board of  
                      consisting of alternate members appointed by the  
                      presiding judge of the superior court.








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                             Assessment appeals board members,  
                      alternate members, assessment hearing officers,  
                      employees of the county counsel who advises the  
                      assessment appeals board, and employees of the  
                      office of clerk of the assessment appeals board  
                      or county board of equalization cannot represent  
                      a taxpayer filing an assessment appeal for  
                      compensation.  

                             Any of the persons listed above  
                      representing a family member with an assessment  
                      appeal must notify the clerk.  

                 THIS BILL revises and recasts conflict of interest  
            laws for assessment appeals by:

                             Moving and consolidating in one section  
                      of law current restrictions barring assessment  
                      appeals board members, alternate members,  
                      assessment hearing officers, employees of the  
                      county counsel who advise the assessment appeals  
                      board, and employees of the office of clerk of  
                      the assessment appeals board or county board of  
                      equalization from representing a taxpayer filing  
                      an assessment appeal for compensation.  The bill  
                      also adds current employees of the assessors'  
                      office to this list, although assessors and their  
                      staff must comply with a distinct set of conflict  
                      of interest statutes.
                             Moving and consolidating in one section  
                      of law current requirements upon any of the  
                      personal listed above that they notify the clerk  
                      that they are representing a himself or herself,  
                      or a parent, child, or spouse in an assessment  
                      appeal.  

                             Additionally, an assessment appeals board  
                      constituted of three special alternate members  
                      selected by the presiding judge of the superior  
                      court must hear any assessment appeal where one  
                      of the above persons represents himself or  
                      herself, or a parent, child, or spouse in an  








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                      assessment appeal.  The board constituted  
                      pursuant to this provision may only hear that  
                      specific appeal.  Assessment appeals board  
                      members in good standing in other counties in  
                      California may serve on the board constituted  
                      pursuant to this section, and again may only hear  
                      that specific appeal that triggers the special  
                      appeals board.  


            FISCAL EFFECT: 

                 According to BOE, AB 852 does not impact state  
            revenues or costs.




            COMMENTS:

            

            A.   Purpose of the Bill

                 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."


            Support and Opposition

                  Support:California Assessors' Association, California  
                        Association of Clerks and Elections Officials,  
                        Orange County Board of Supervisors, Solano  
                        County Board of Supervisors, Orange County  








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                        Taxpayers Association, Orange County  
                        Association of Realtors.



                 Oppose:



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            Consultant: Colin Grinnell