BILL NUMBER: AB 2183 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 15, 2012
INTRODUCED BY Assembly Member Smyth
FEBRUARY 23, 2012
An act to repeal Section 6515 of the Government Code
amend Section 15640 of the Government Code, and to
add Article 2.5 (commencing with Section 1660) to Chapter 1 of Part 3
of Division 1 of the Revenue and Taxation Code , relating to
local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2183, as amended, Smyth. Joint exercise of powers.
Local government: assessors: county board of
equalization: assessment appeals board: tax agents.
Existing law requires every assessor to assess all property
subject to general property taxation at its full value on the lien
date, as provided, and to prepare an assessment roll in which all
property within the county which it is the assessor's duty to assess
is required to be listed. Existing law requires a county board of
equalization or an assessment appeals board to equalize the valuation
of taxable property within the county for the purpose of taxation.
Existing law authorizes a taxpayer, with respect to each assessment
year, to file an application for a reduction in an assessment, as
provided, with the county board, which is the county board of
supervisors meeting as a county board of equalization of an
assessment appeals board.
This bill would, on and after January 1, 2014, require an agent,
as defined, representing a taxpayer before the assessor, a county
board of equalization, or an assessment appeals board, to register
with a registering jurisdiction, as defined, prior to representing a
taxpayer before that jurisdiction. This bill would require specified
information to be included in the agent registration, and would
authorize the registering jurisdiction to prescribe the procedures,
forms, and means of filing the agent registration. This bill would
require the registering jurisdiction to set, charge, and collect a
fee in an amount necessary to recover the costs of registration,
including the amendment and renewal of registrations. This bill would
impose certain affirmative duties upon each agent, and would
prohibit each agent from engaging in certain activities. This bill
would authorize the registering jurisdiction to reprimand, suspend,
or deregister any agent from representation before that jurisdiction
under certain circumstances, and to impose a monetary penalty on any
agent who engages in certain prohibited activities, as provided.
By imposing new duties upon local county officials with respect to
the registration of tax agents, this bill would impose a
state-mandated local program.
Existing law requires the State Board of Equalization to make
surveys in each county and city and county to, among other things,
determine the adequacy of the procedures and practices employed by
the county assessor in the valuation of property for the purposes of
taxation and in the performance generally of the assessor's duties.
This bill would expand the requirements of the survey conducted by
the State Board of Equalization to include a review of the
procedures and practices that regulate the behavior of agents, as
defined.
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.
Existing law provides that in addition to other powers, any
agency, commission, or board provided for by a joint powers agreement
between an irrigation district and a city, is authorized to issue
revenue bonds to pay the cost and expense of acquiring, constructing,
improving, and financing a project for specified purposes. Existing
law makes this provision inoperative after December 31, 1973, except
as specified.
This bill would repeal this provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15640 of the
Government Code is amended to read:
15640. (a) The State Board of Equalization shall make surveys in
each county and city and county to determine the adequacy of the
procedures and practices employed by the county assessor in the
valuation of property for the purposes of taxation and in the
performance generally of the duties enjoined upon him or her.
(b) The surveys shall include a review of the practices of the
assessor with respect to uniformity of treatment of all classes of
property to ensure that all classes are treated equitably, and that
no class receives a systematic overvaluation or undervaluation as
compared to other classes of property in the county or city and
county.
(c) The surveys may include a sampling of assessments from the
local assessment rolls. Any sampling conducted pursuant to
subdivision (b) of Section 15643 shall be sufficient in size and
dispersion to insure an adequate representation therein of the
several classes of property throughout the county.
(d) In addition, the board may periodically conduct statewide
surveys limited in scope to specific topics, issues, or problems
requiring immediate attention.
(e) The board's duly authorized representatives shall, for
purposes of these surveys, have access to, and may make copies of,
all records, public or otherwise, maintained in the office of any
county assessor.
(f) The board shall develop procedures to carry out its duties
under this section after consultation with the California Assessors'
Association. The board shall also provide a right to each county
assessor to appeal to the board appraisals made within his or her
county where differences have not been resolved before completion of
a field review and shall adopt procedures to implement the appeal
process.
(g) The survey may include a review of the procedures and
practices that regulate the behavior of agents as defined in Section
1661 of the Revenue and Taxation Code.
SEC. 2. Article 2.5 (commencing with Section 1660)
is added to Chapter 1 of Part 3 of Division 1 of the
Revenue and Taxation Code , to read:
Article 2.5. Duties of Tax Agents
1660. The Legislature finds and declares that in order to protect
the rights of taxpayers and to advance the professional practice of
tax agents at the local level so that tax agents are held to the
highest ethical standards in California, it is necessary to enact
legislation establishing a code of practice for tax agents similar to
regulations established at the federal level for enrolled agents.
1661. (a) For purposes of this chapter and Chapter 3, "agent"
shall include any person authorized to represent a taxpayer as an
agent in connection with any matter before the assessor, a county
board of equalization, or an assessment appeals board. An agent may
be a firm or other entity, but that firm or entity may only use
individual agents registered pursuant to this article to represent a
taxpayer before a registering jurisdiction.
(b) For purposes of this article, a "registering jurisdiction"
means the county with which an agent has registered pursuant to this
article.
(c) This article shall not apply to a person representing any of
the following:
(1) Himself or herself.
(2) An immediate family member.
(3) The agent's full-time employer.
(4) An entity of which the agent is a partner, officer, or owner
of 10 percent or more of the value of the entity.
(d) This article shall not be construed to authorize persons who
are not members of the bar to practice law.
1662. (a) An agent shall register with a registering jurisdiction
pursuant to this article prior to the representation of a taxpayer
before the assessor, a county board of equalization, or an assessment
appeals board in that jurisdiction. The registration required by
this section shall further apply in situations where an authorized
agent relationship with the taxpayer has already been formed.
(b) An entity that employs or contracts for the services of
individual agents and provides representation services may itself
register as an agent, provided that each employee or contractor who
will provide services as an agent is also registered pursuant to this
article.
(c) A person may not register or provide services as an agent if
that person satisfies any of the following:
(1) Has been convicted of any criminal offense under state or
federal tax laws.
(2) Has been convicted of any criminal offense involving
dishonesty, breach of trust, or moral turpitude.
(3) Has been disbarred or suspended from practice as an attorney,
certified public accountant, public accountant, or actuary by any
duly constituted authority of any state, territory, or possession of
the United States, including a commonwealth, or the District of
Columbia, any court of record, or any agency, body, or board.
(d) (1) Attorneys and enrolled agents shall not be required to
register pursuant to this section.
(2) For purposes of this section, both of the following shall
apply:
(A) "Attorney" means any natural person, professional law
association, corporation, or partnership authorized under the
applicable laws of this state to practice law.
(B) "Enrolled agent" means any individual enrolled as an agent
pursuant to Part 10 of Title 31 of the Code of Federal Regulations
who is not currently under suspension or disbarment from practice
before the Internal Revenue Service.
(e) It shall be a violation of this article for any person to act
as an agent under this chapter if that agent's registration has been
suspended or that agent has been deregistered.
1663. (a) The agent registration shall include all of the
following information:
(1) The full name, business address, business telephone number,
and business e-mail address, if applicable, of the agent.
(2) If the agent is an individual, the name of the agent's
employer.
(3) If the agent is a firm or other entity, a list of the
partners, owners, officers, employees, or contractors of the agent
firm or entity that may provide services as a registered agent.
(4) A recent photograph of the agent, if applicable.
(5) A signed statement that the agent is qualified for
registration under this article, and has read, understands, and
agrees to comply with this article.
(6) Any other information required by the registering
jurisdiction.
(b) If any material change occurs in the agent's registration
information, the agent shall file an amendment to the agent
registration with the registering jurisdiction within 30 days of the
change of information.
(c) Agent registrations shall be renewed by the agent every two
years. An agent shall have 30 days from the two-year expiration date
to renew the registration, after which the authority to represent a
taxpayer before the registering jurisdiction is automatically
suspended.
(d) The registering jurisdiction may prescribe the procedures,
forms, and means of filing for registration.
(e) The registering jurisdiction shall set, charge, and collect a
fee in an amount necessary to recover the costs of registration for
each agent, including the amendment and renewal of registrations.
(f) The agent registration required pursuant to this section is a
public record subject to inspection pursuant to the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division
7 of Title 1).
1664. (a) Every agent shall have an affirmative duty to do all of
the following:
(1) Exercise due diligence in determining the correctness of oral
or written representations made by the agent and the taxpayer, and
otherwise be thoroughly familiar with the facts pertaining to the
matter before the registering jurisdiction.
(2) Promptly submit records or information upon request of the
registering jurisdiction in any matter before the registering
jurisdiction unless the agent believes in good faith and on
reasonable grounds that the records or information are privileged or
otherwise confidential.
(3) Not interfere, or attempt to interfere, with any proper and
lawful effort by the registering jurisdiction, its public officials,
or public employees, to obtain any record or information unless the
agent believes in good faith and on reasonable grounds that the
record or information is privileged.
(4) Promptly advise a taxpayer, if the agent knows the taxpayer
has not complied with applicable statutes, regulations, and rules or
has made an error in or omission from any document submitted or
executed under this chapter, of the fact of such noncompliance,
error, or omission, and further advise the taxpayer of the
consequences under the applicable statutes, regulations, and rules.
(5) Promptly return any and all records of the taxpayer that are
necessary for the taxpayer to comply with his or her legal
obligations, although the agent may retain copies of the records
returned to a taxpayer.
(6) (A) Include in any written or broadcast advertisement,
promotion, offer, or solicitation of an assessment reduction filing
service a disclosure that the agent is registered in the registering
jurisdiction where the service is being offered, including the agent'
s registration number for that registering jurisdiction.
(B) For purposes of this paragraph, "assessment reduction filing
service" has the same meaning as defined in Section 17537.9 of the
Business and Professions Code.
(b) The existence of a dispute over fees does not relieve the
agent of his or her responsibility under this section.
1665. An agent shall not engage in any of the following
activities:
(a) Directly or indirectly attempt to influence, or offer or agree
to attempt to influence, the official action of any public official
or public employee of the registering jurisdiction by the use of
threats, false accusations, duress, or coercion, by the offer of any
special inducement or promise of an advantage or by the bestowing of
any gift, campaign contribution, favor, or thing of value.
(b) Do anything with the purpose of placing any public official,
public employee, or candidate for public office under personal
obligation to the agent or another.
(c) Use false or misleading representations with the intent to
deceive a client or prospective client in order to procure
employment, or intimate that the agent is able improperly to obtain
special consideration or action from the registering jurisdiction or
any public official, public employee, or candidate for public office.
(d) Act or attempt to act in any way as an agent of a taxpayer, or
falsely claim to be the agent of a taxpayer, without the valid
authorization of that taxpayer to establish an agency relationship.
(e) Deceive or attempt to deceive any public official or candidate
for public office with regard to any material fact pertinent to any
pending or proposed tax related or administrative action pending
before the registering jurisdiction.
(f) Knowingly give false or misleading information, or participate
in any way in the giving of false or misleading information to the
registering jurisdiction or any public official or public employee
thereof, in connection with any matter pending or likely to be
pending before them. Facts or other matters contained in testimony,
tax returns, financial statements, assessment appeals, affidavits,
declarations, valuations, and any other document or statement,
written or oral, are included in the term "information."
(g) Use or participate in any way in the use of any form of public
communication or private solicitation containing a false,
fraudulent, or coercive statement or claim, or a misleading or
deceptive statement or claim.
(h) Willfully assist, counsel, or encourage a client or
prospective client to violate any federal, state, or local tax law,
or knowingly counsel or suggest to a client or prospective client an
illegal plan to evade federal, state, or local taxes or payment
thereof.
(i) Willfully, recklessly, or through gross incompetence submit or
execute a document, make an oral representation, or advise a
taxpayer to submit or execute a document or make an oral
representation, that the agent knows or reasonably should know
contains a position that is frivolous, lacks a reasonable basis in
fact, or represents a willful attempt to understate the liability for
tax or a reckless or intentional disregard of applicable statutes,
rules, or regulations by the agent.
(j) Willfully fail to prepare, execute, or submit required
documents unless the failure is due to reasonable cause and not due
to willful neglect.
(k) Charge an unconscionable fee in connection with any matter
before the registering jurisdiction.
(l) Violate Section 17537.9 of the Business and Professions Code.
(m) Knowingly aid and abet another person to practice as an agent
before the registering jurisdiction during a period of suspension,
deregistration, or ineligibility of such other person.
(n) Willfully represent a taxpayer before a public official or
public employee of the registering jurisdiction unless the
practitioner is authorized to do so pursuant to this article.
(o) Engage in contemptuous conduct in connection with practice
before the registering jurisdiction, including the use of abusive
language, making false accusations or statements, knowing them to be
false, or circulating or publishing malicious or libelous matter.
1666. The registering jurisdiction, after notice and an
opportunity for a proceeding sufficient to ensure due process, may do
both of the following:
(a) (1) Reprimand, suspend, or deregister any agent from
representation before the jurisdiction if the agent fails to
materially comply with this article.
(2) A suspended or deregistered agent may petition for
reinstatement before the registering jurisdiction after the
expiration of five years following the suspension or deregistration.
Reinstatement may not be granted unless the registering jurisdiction
is satisfied that the petitioner is not likely to thereafter conduct
himself or herself contrary to this article, and that granting the
reinstatement would not otherwise be contrary to the public interest.
(b) (1) Impose a monetary penalty on any agent who violates
Section 1662 or 1665. If the agent is found to have acted on behalf
of an employer, firm, or entity, the registering jurisdiction may
impose a monetary penalty on the employer, firm, or entity if the
employer, firm, or entity reasonably should have known of the
conduct. The registering jurisdiction may accept an agent's offer of
consent to be sanctioned in lieu of instituting or continuing a
proceeding.
(2) The amount of the penalty shall not exceed the gross income
derived or to be derived from the conduct giving rise to the penalty.
Any monetary penalty imposed on an agent under this section may be
in addition to or in lieu of any reprimand, suspension, or
deregistration and may be in addition to a penalty imposed on an
employer, firm, or other entity under this section.
(3) The penalties imposed by this subdivision shall take into
account all relevant facts and circumstances.
1667. A registering jurisdiction may jointly administer the
registration of tax agents pursuant to this article with another
registering jurisdiction upon approval of the county board of
supervisors of each registering jurisdiction.
1668. The registering jurisdiction may adopt further ordinances,
standards, criteria, procedures, determinations, rules, notices,
guidelines, forms, and instructions necessary to carry out the
purposes of this article, which is to regulate the activity of agents
representing taxpayers in equalization matters before that
jurisdiction.
1669. This article shall become operative on January 1, 2014.
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code.
SECTION 1. Section 6515 of the Government Code
is repealed.