Amended in Assembly May 23, 2014

Amended in Assembly April 3, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2415

Introduced by Assembly Member Ting

(Principal coauthor: Assembly Member Cooley)

( begin delete Coauthor: end delete begin insert Coauthors: end insert Assembly begin delete Member end delete begin insert Members end insert Bocanegra begin insert and Dababneh end insert )

February 21, 2014

An act to add Chapter 14.5 (commencing with Section 22260) to Division 8 of the Business and Professions Code, relating to property tax agents.

LEGISLATIVE COUNSEL’S DIGEST

AB 2415, as amended, Ting. Property tax agents.

Existing law requires every assessor to assess all property subject to general property taxation at its full value and to prepare an assessment roll in which all property within the county that 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 assessment of property on the local roll 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 or an assessment appeals board.

This bill would, commencing begin delete September 1, 2015, end delete begin insert April 1, 2016, end insert prohibit a begin delete property tax agent, end delete begin insert Property Tax Agent, end insert defined as any individual who is employed, under contract, or otherwise receives compensation, from communicating directly with any county official for the purpose of influencing official action relating to the establishment of a taxable value for any property subject to taxation, and from representing a taxpayer before a county official, without first being registered and issued a registration number by the Secretary of State. begin insert The bill would provide that a violation of these provisions is a misdemeanor. end insert The bill would require a Property Tax Agent to begin delete file end delete begin insert file, under penalty of perjury, end insert with the Secretary of State an application for registration that includes specified information and a registration begin delete fee in the amount of $250 end delete begin insert fee, as specified end insert begin insert . Because this bill would create new crimes, this bill would impose a state-mandated local program end insert . begin delete This end delete

begin insert This end insert bill would make the registration subject to biennial begin delete renewal and require the payment of a $250 renewal fee. end delete begin insert renewal. end insert This bill would begin delete prohibit a person from registering, renewing his or her registration, or providing services as a Property Tax Agent end delete begin insert require the Secretary of State to issue a cease and desist order to a person who is subject to these provisions end insert if that person has been convicted of a felony or certain other criminal offenses or has had his or her professional license, as specified, begin delete revoked. This bill would authorize the Secretary of State to revoke a Property Tax Agent’s registration for any violation of these provisions subject to specified procedures, and would require the Secretary of State to send the Property Tax Agent a written notice of intent to revoke prior to the revocation. This bill would also require the Secretary of State to conduct a background check on each property tax agent in accordance with regulations to be developed by the Secretary of State. end delete begin insert revoked, and to provide a copy of the notice to the Attorney General. end insert

This bill would require the Secretary of State to develop a list of registered property tax agents, and a list of registered property tax agents who have been fined or whose license has been revoked, and to make those lists publicly available on its Internet Web site, as specified. The bill would prohibit a Property Tax Agent from engaging in specified activities, including, but not limited to, representing that the Property Tax Agent can control the official action of any county official and making a gift, as defined, to any county official. The bill would authorize the begin delete Secretary of State to pursue end delete begin insert imposition of end insert civil penalties not to exceed $1,500 for begin delete the failure to comply with, or a violation of, these provisions subject to specified procedures, and would require the Secretary of State to send the Property Tax Agent a written notice of noncompliance or violation prior to the imposition of these civil penalties end delete begin insert each violation of these provisions end insert .

begin insert

This bill would require the Attorney General, District Attorney, or City Attorney, as applicable, to notify the Secretary of State of any conviction of, or of any penalty imposed against, a Property Tax Agent pursuant to these provisions. By imposing new duties on city attorneys’ offices, this bill would impose a state-mandate local program.

end insert

This bill would preempt and supersede all local ordinances regarding the registration of any individual who communicates directly or indirectly with any county official for the purpose of influencing official action regarding a property tax assessment.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

SECTION 1.  

Chapter 14.5 (commencing with Section 22260)
is added to Division 8 of the Business and Professions Code, to
read:

 

Chapter  14.5. Property Tax Agents

 

22260.  

The following definitions apply for purposes of this
chapter:

(a) “County official” means the county assessor, an assessment
appeals board member, an assessment hearing officer, and any
other county employee within those offices whose duties are not
primarily clerical or manual.

(b) “Gift” shall be defined as set forth in the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000) of the
Government Code) and the regulations adopted thereunder.

(c) (1) “Influencing official action” means representing a
taxpayer as an agent in connection with any matter before any
county official by promoting, supporting, influencing, seeking
modification of, opposing, or seeking delay of any official action
by any means.

begin insert

(2) The following shall not be considered to be influencing
official action:

end insert begin delete

(2)

end delete

begin insert (A) end insert  The filing or submitting of required county forms for
compliance purposes and communication related to these filings
shall not be considered to be influencing official action.

begin insert

(B) The act of contacting, or being contacted by, a county
official solely for the purpose of ascertaining the current status of
any of the following:

end insert begin insert

(i) A property’s taxable value.

end insert begin insert

(ii) A pending property tax refund.

end insert begin insert

(iii) A pending property tax exemption application.

end insert

(d) “Official action” means establishing a taxable value for any
property subject to property taxation, including initial value,
declines in value, corrections to values and any other changes in
the taxable value set; completing an assessment roll showing the
assessed values of all property; applying all legal exemptions to
assessments; issuing refunds; and deciding all property assessment
disputes between taxpayers and a county official.

(e) “Public official” and “public employee” mean any
government official or employee of any state or local government
agency.

(f) “Property Tax Agent” means any individual who is
employed, under contract, or otherwise receives compensation to
communicate directly, or through agents, employees, or
subcontractors, with any county official for the purpose of
influencing official action. A Property Tax Agent shall not include:

(1) An elected or appointed public official or public employee
when acting in his or her official capacity.

(2) A person representing any of the following:

(A) Himself or herself.

(B) An immediate family member.

(C) An entity of which the person is a partner or owner of 10
percent or more of the value of the entity.

(3) An in-house tax professional or in-house employee
representing his or her employer by influencing official action.

begin insert

(4) A person who, accompanying the taxpayer or a registered
Property Tax Agent, only provides their expert opinion to a county
official.

end insert

22260.1.  

(a) (1) Each Property Tax begin delete Agent, within 30 days of
becoming a Property Tax Agent, end delete begin insert Agent end insert shall file begin insert , under penalty
of perjury, end insert with the Secretary of State an application for a
registration containing the following information:

(A) The Property Tax Agent’s full name, business address,
business telephone number, begin delete and end delete business email address, begin insert date of
birth, and previous Property Tax Agent number issued by the
Secretary of State, end insert if applicable.

(B) The name of the Property Tax Agent’s employing tax agent
firm, if applicable.

begin insert

(C) A statement affirming that the person has not:

end insert begin insert

(i) Been convicted of any felony under state or federal tax laws.

end insert begin insert

(ii) Been convicted of any other criminal offense involving
dishonesty, breach of trust, or moral turpitude.

end insert begin insert

(iii) Had his or her professional license to practice as an
attorney, certified public accountant, public accountant, or actuary
revoked 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.

end insert begin delete

(C)

end delete

begin insert (D) end insert  A statement that the Property Tax Agent has read and
understands the duties and prohibitions contained in Section
22260.6.

begin insert

(2) Providing false information on the application for
registration shall subject the Property Tax Agent to a cease and
desist order by the Secretary of State.

end insert begin delete

(2)

end delete

begin insert (3) end insert  A Property Tax Agent shall also pay the Secretary of State
a registration fee in the amount of two hundred fifty dollars begin delete ($250). end delete
begin insert ($250) or a fee not to exceed the amount necessary to administer
this chapter. end insert

(b) If the requirements of subdivision (a) are satisfied, the
Secretary of State shall issue a Property Tax Agent registration
number to the Property Tax Agent within begin delete 5 end delete begin insert ___ end insert business days.

begin insert

(c) Beginning on January 1, 2016, the Secretary of State shall
accept applications for a registration from Property Tax Agents.

end insert begin delete

(c)

end delete

begin insert (d) end insert  Beginning begin delete September 1, 2015, end delete begin insert April 1, 2016, end insert a Property Tax
Agent shall not represent taxpayers before a county official without
first being registered and issued a registration number pursuant to
this section. begin insert The Secretary of State shall provide the Property Tax
Agent the same registration number should that Property Tax
Agent reregister at a subsequent date. end insert

begin delete

(d)

end delete

begin insert (e) end insert  A registration issued pursuant to this section shall expire
two years from its date of issuance unless and until that person
terminates the registration or the registration is revoked pursuant
to Section 22260.8. begin delete An expired registration may be renewed
biennially if the registrant pays an annual renewal registration fee
in the amount of two hundred fifty dollars ($250) to the Secretary
of State. end delete

begin delete

(e) A person may not register, renew his or her registration, or
provide services as a Property Tax Agent if that person:

end delete begin delete

(1) Has been convicted of any felony under state or federal tax
laws.

end delete begin delete

(2) Has been convicted of any other criminal offense involving
dishonesty, breach of trust, or moral turpitude.

end delete begin delete

(3) Has had his or her professional license to practice as an
attorney, certified public accountant, public accountant, or actuary
revoked 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.

end delete begin delete

(f) The Secretary of State shall conduct a background check on
each Property Tax Agent applicant in accordance with rules and
regulations developed by the Secretary of State.

end delete begin insert

(f) The Secretary of State, 30 days prior to the expiration of the
registration, shall send to the Property Tax Agent a notice of the
registration’s expiration.

end insert

(g) Registration fees collected pursuant to this chapter shall be
deposited in the Secretary of State’s Business Fees Fund
established in Section 12176 of the Government Code.

22260.2.  

A county supervisor or a member of a county
assessment appeals board shall not act as a Property Tax Agent in
the county in which they currently serve as a county supervisor or
as a member of a county assessment appeals board.

22260.3.  

(a) Within begin delete 30 end delete begin insert 10 end insert days of any change in any of the
registration information submitted pursuant to Section 22260.1, a
Property Tax Agent shall file updated registration information with
the Secretary of State.

(b) When a Property Tax Agent ceases all activities related to
influencing official action, this fact shall be reported to the
Secretary of State.

(c) It shall be a begin delete violation of this chapter end delete begin insert misdemeanor end insert for any
person to act as a Property Tax Agent if that person is not registered
as a Property Tax Agent pursuant to Section 22260.1 or if that
person was previously registered as a Property Tax Agent pursuant
to Section 22260.1 but that person is no longer registered as a
Property Tax Agent.

22260.4.  

This chapter shall not be construed to prohibit a
county from, by ordinance, enacting Property Tax Agent reporting
requirements for campaign contributions to elected officials in that
begin delete county. end delete begin insert county or prohibiting such campaign contributions. end insert

22260.5.  

(a) The begin delete secretary end delete begin insert Secretary of State end insert shall develop a
list of registered Property Tax Agents and make that list available
to the public on its Internet Web site.

(b) The begin delete secretary end delete begin insert Secretary of State end insert shall develop a list of
registered Property Tax Agents, who after exhausting their
administrative remedies, have been begin delete fined end delete begin insert fined, end insert or whose license
has been revoked, and post the names and business addresses of
those Property Tax Agents on the secretary’s Internet Web site.

22260.6.  

A property tax agent shall not engage in any of the
following activities:

(a) Use, or participate in the use of, any public communication
or private solicitation containing false, misleading, fraudulent, or
deceptive representations, or intimate that the Property Tax Agent
is able to improperly obtain special consideration or action from
the county of any county official.

(b) Act as or attempt to act as, or claim to be the Property Tax
Agent of a taxpayer, or represent a taxpayer before a county or
any county official, without the authorization of that taxpayer.

(c) Violate Section 17533.6 or 17537.9 of the California
Business and Professions Code.

(d) Knowingly aid and abet another person to practice as a
Property Tax Agent before the county or a county official during
a period when the other person has been deregistered as a Property
Tax Agent or otherwise is ineligible to lawfully act as a Property
Tax Agent.

(e) Directly or indirectly attempt to influence, or offer or agree
to attempt to influence, the official action of any county official
by the use of threats, false accusations, duress, or coercion, by the
offer of any special inducement or promise of an advantage or by
bestowing any gift, campaign contribution, favor, or thing of value.

(f) Do anything with the purpose of placing any county official
under personal obligation to the Property Tax Agent or another.

(g) Represent, either directly or indirectly, that the Property Tax
Agent can control the official action of any county official.

(h) Make a gift or gifts of any monetary value to a county
official. A Property Tax Agent shall not act as an agent or
intermediary in the making of any gift or arrange for the making
of any gift from any other person.

begin delete

22260.7.  

(a) If, after investigation, it is determined by the
Secretary of State that any Property Tax Agent fails to comply
with, or is in violation of, this chapter, the Secretary of State shall
send the Property Tax Agent a written notice of Property Tax
Agent noncompliance or violation.

(b) Any person may file a complaint with the Secretary of State
that any Property Tax Agent has not complied with, or has violated
this, chapter.

(c) The Secretary of State shall have the discretion to pursue
civil penalties for noncompliance with, or violation of, this chapter.
The Secretary of State shall be designated as the enforcement
officer for determination and imposition of the civil penalties.

(d) Notwithstanding subdivision (c), a civil penalty shall not be
imposed if the first noncompliance with, or violation of this,
chapter is cured within 30 days of the date on which the Secretary
of State sends written notice of the noncompliance with, or
violation of, this chapter to the Property Tax Agent.

(e) Any noncompliance with, or violation of, this chapter is
punishable by a civil penalty not to exceed one thousand five
hundred dollars ($1,500).

(f) The civil penalty may be imposed by the Secretary of State
if a hearing is not requested pursuant to Section 22260.9. If a
hearing is requested, the hearing officer shall make the
determination.

(g) Any civil penalties collected pursuant to this section shall
be transferred to the General Fund.

22260.8.  

(a) Notwithstanding any other provision of this
chapter, if, after investigation, it is determined by the Secretary of
State that any Property Tax Agent, subsequent to his or her
registration, is ineligible to renew his or her registration or is unable
to provide services as a Property Tax Agent due to any of the
reasons specified in subdivision (e) of Section 22260.1, the
Secretary of State shall send the Property Tax Agent a written
notice of intent to revoke that Property Tax Agent’s registration
within 30 days of the issuance of the notice of intent to revoke.

(b) Any person may file a complaint with the Secretary of State
that any Property Tax Agent has violated subdivision (e) of Section
22260.1.

(c) The Secretary of State shall have the discretion to revoke
any Property Tax Agent’s registration if a Property Tax Agent is
ineligible to renew his or her registration or is unable to provide
services as a Property Tax Agent due to any of the reasons specified
in subdivision (e) of Section 22260.1. The Secretary of State shall
be designated as the enforcement officer for determination of
revocation of a Property Tax Agent’s registration.

(d) The registration may be revoked by the Secretary of State
if a hearing is not requested pursuant to Section 22260.9. If a
hearing is requested, the hearing officer shall make the
determination.

22260.9.  

(a) Prior to the imposition of a civil penalty pursuant
to Section 22260.7 or the revocation of a registration pursuant to
Section 22260.8, the person affected shall have a right to a hearing
on the matter. The request for a hearing shall be submitted in
writing within 15 days of the issuance of the notice of
noncompliance or violation or the notice of intent to revoke.

(b) The hearing shall be conducted in accordance with Chapter
5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code.

22260.10.  

Subject to the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code), the Secretary of State may
develop rules and regulations for the administration of this chapter.

end delete begin insert

begin insert 22260.7. end insert   

The Secretary of State shall issue a cease and desist
order to a person subject to the provisions of this chapter who had
his or her professional license to practice as an attorney, certified
public accountant, public accountant, or actuary revoked, or has
been convicted of any felony under state or federal tax laws, or
has been convicted of any other criminal offense involving
dishonesty, breach of trust, or moral turpitude, and shall provide
a copy of the notice to the Attorney General. Prior to issuing a
cease and desist order to a person pursuant to this subdivision,
the Secretary of State shall provide the person with written notice
and an opportunity to demonstrate that grounds for disqualification
do not exist.

end insert begin insert

begin insert 22260.8. end insert   

(a) A person who violates this chapter shall be subject
to a civil penalty not to exceed one thousand five hundred dollars
($1,500) in a civil action for each violation brought in the name
of the people of the State of California by the Attorney General, a
district attorney, or a city attorney.

(b) The court shall impose a civil penalty for each violation of
this chapter. In assessing the amount of the civil penalty, the court
may consider relevant circumstances presented, including, but not
limited to, the following:

(1) The nature and seriousness of the misconduct.

(2) The number of violations.

(3) The persistence of the misconduct.

(4) The length of time over which the misconduct occurred.

(5) The willfulness of the defendant’s misconduct.

(6) The defendant’s assets, liabilities, and net worth.

(c) If the Attorney General brings the action, one-half of the
civil penalty collected shall be paid to the treasurer of the county
in which the judgment was entered, and one-half to the General
Fund. If a district attorney brings the action, the civil penalty
collected shall be paid to the treasurer of the county in which the
judgment was entered. If a city attorney brings the action, one-half
of the civil penalty collected shall be paid to the treasurer of the
city in which the judgment was entered, and one-half to the
treasurer of the county in which the judgment was entered.

(d) Notwithstanding subdivision (a), a penalty shall not be
imposed if the first noncompliance with, or violation of, this chapter
is cured within 30 days of the date on which the Secretary of State
issues a cease and desist order pursuant to Section 22260.7 to a
person subject to this chapter.

end insert begin insert

begin insert 22260.9. end insert   

The Attorney General, District Attorney, or City
Attorney shall notify the Secretary of State of both of the following:

(a) Any conviction of a Property Tax Agent under Section
22260.3. The prosecuting office shall make this notification.

(b) Any civil penalty imposed against a Property Tax Agent
pursuant to Section 22260.8. The office bringing the action shall
make this notification.

end insert

22260.11.  

The provisions of this chapter shall preempt and
supersede all local ordinances regarding the registration of any
individual who communicates directly or indirectly with any county
official for the purpose of influencing official action regarding a
property tax assessment.

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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

end insert begin insert

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

end insert