BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  AB 2756                     HEARING:  6/25/14
          AUTHOR:  Committee on Revenue and TaxationFISCAL:  Yes
          VERSION:  5/23/14                     TAX LEVY:  No
          CONSULTANT:  Grinnell                 

                       ASSESSMENT ANALYSTS CERTIFICATION
          

          Directs BOE to create a certification process for  
          assessors' office employees reviewing changes in ownership  
          and exemptions.


                           Background and Existing Law  

          Section One of Article XIII of the California Constitution  
          provides that all property is taxable unless explicitly  
          exempted by the Constitution or federal law.  In 1850, the  
          Legislature first directed county assessors to tax  
          property; however, assessors at the time often applied tax  
          rates and methods of assessment that varied significantly  
          from county to county.  The California Constitution of 1879  
          created the Board of Equalization (BOE) to equalize  
          property tax rates and assessment practices among counties.  
           As part of this oversight role, BOE administers the  
          property tax certification program, which imposes  
          certification and annual training requirements on property  
          tax appraisers and auditor-appraisers who are county  
          employees.  The California Assessors' Associations wants  
          BOE to create a certification program to help train  
          employees to make determinations regarding changes in  
          ownership and welfare exemptions.


                                   Proposed Law  

          Assembly Bill 2756 bars any state or county employee from  
          making decisions with regard to changes in ownership or  
          property tax exemptions, except the homeowners' exemption,  
          unless he or she is the holder of a valid BOE assessment  
          analyst certificate.  The measure sets up a process to  
          certify an assessment analyst, then creates three  
          additional certificates: temporary, interim, and advanced.





          AB 2756 - 5/23/14 -- Page 2



          BOE must create an examination for applicants seeking an  
          assessment analyst certificate, and may contract with the  
          California Department of Human Resources to give the  
          examinations.  BOE must prepare the exam with the advice  
          and assistance of a committee of five assessors selected by  
          the California Assessors' Association.  BOE cannot issue a  
          certificate to any person who has not attained a passing  
          grade in the examination and demonstrated to the board that  
          he or she is competent to make change in ownership or  
          exemption decisions.  However, any applicant denied one can  
          ask for a review under the Administrative Procedure Act.   
          Individuals holding a valid appraiser's or advanced  
          appraiser's certificate from BOE aren't subject to the  
          bill's requirements, and BOE can't charge counties for the  
          bill's costs.

          The bill requires every certified assessment analyst to  
          complete at least 24 hours of continuing education training  
          conducted or approved by BOE each year.  Any training time  
          in excess of the 24-hour minimum that is accumulated in any  
          one year must be carried over as credit for future training  
          requirements, with a limit of three years in which the  
          carryover time may be credited.  Failure to complete  
          training shall constitute grounds for revocation of a  
          certificate, and a proceeding to revoke shall be conducted  
          in accordance with the Administrative Procedure Act.

          BOE must issue an advanced assessment analyst certificate  
          for an applicant that has held an assessment analysts  
          certificate for at least three years and has:
                 Completed an advanced course of study prepared by  
               BOE and assistance of five assessors selected by the  
               California Assessors' Association, and
                 Passed an advanced level examination,

          To retain a valid advanced assessment analyst certificate,  
          every holder must complete at least 12 hours of training in  
          each one-year period, but any training time for the  
          advanced assessment analyst certificate in excess of the  
          12-hour minimum accumulated in any one year must be carried  
          over as credit for future training requirements, with a  
          limit of two years in which the carryover time may be  
          credited.  Failure to complete training shall constitute  
          grounds for revocation of a certificate, and BOE can  
          conduct a proceeding to revoke under the Administrative  
          Procedure Act.





          AB 2756 - 5/23/14 -- Page 3




          BOE can issue a temporary certificate to a person who is  
          newly employed by the state or county to allow the person  
          time to pass the exam, but it can't last more than one  
          year, unless the person has been duly elected or appointed  
          to the office of assessor.  BOE cannot renew a temporary  
          certificate.  

          BOE can also issue an interim certificate to a person who  
          is currently employed by the state or county who is making  
          change in ownership or exemption decisions to allow the  
          person time to pass the exam.  BOE cannot issue an interim  
          certificate for a duration that exceeds four years, unless  
          the person has been duly elected or appointed to the office  
          of assessor.  BOE cannot renew an interim certificate.

          Applicants must disclose his or her financial interest in  
          any legal entity at the time of initial certification, and  
          must complete the form annually.  The bill deems a  
          duplicate of a filing to the Fair Political Practices  
          Commission to meet the requirement.

          The measure clarifies that it can't be construed to impede  
          an assessor from managing his or her staff resources  
          efficiently, and in a manner that allows non-certificated  
          staff to prepare and work with exemption applications and  
          change in ownership documents, provided that the  
          non-certificated staff are not responsible for making  
          exemption or change in ownership decisions.

          The measure makes legislative findings and declarations  
          supporting its purposes, and renumbers the section of law  
          allowing for contract employees.


                               State Revenue Impact
           
          BOE states that AB 2756 doesn't have a revenue impact.


                                     Comment  

           Purpose of the bill  .  Since current law requires appraisers  
          to be certified, similar certification procedures are  
          needed for state and local government employees making  
          decisions in regard to change in ownership and property tax  





          AB 2756 - 5/23/14 -- Page 4



          exemptions.  Change in ownership and exemption decisions  
          are highly complex, requiring a thorough understanding of  
          different legal documents, statures, regulations, and court  
          decisions.  This bill is intended to ensure employees  
          making change in ownership and exemption decisions are  
          adequately trained and educated.


                                 Assembly Actions  

          Assembly Floor                          60-10
          Assembly Appropriations                      12-0
          Assembly Revenue and Taxation           6-0


                        Support and Opposition  (06/19/14)

           Support  :  California Assessors Association.  

           Opposition  :  None received.