State Board of Equalization: California Department of Tax and Fee Administration: Franchise Tax Board: Office of Tax Appeals: transfer of duties.

The California Constitution establishes the State Board of Equalization (board) consisting of the Controller and 4 other members elected from districts, and provides for the election, recall, impeachment, filling of vacancies, and salaries and benefits of those board members elected from districts. The California Constitution vests the board with various powers, duties, and responsibilities related to the administration of taxes imposed on property, insurance, and alcoholic beverages. Existing law establishes, in the Government Operations Agency, the California Department of Tax and Fee Administration (department) and transferred to the department the duty to administer various statutory taxes and fees that had previously been administered by the board. Under existing law, all laws prescribing the duties, powers, and responsibilities of the board to which the department succeeds, together with all lawful rules and regulations established under those laws, are expressly continued in force, including, but not limited to, existing processes and remedies available to a taxpayer or feepayer, such as settlement options and appeals processes. Existing law establishes, in the Government Operations Agency, the Franchise Tax Board consisting of the Controller, the Director of Finance, and the Chairman of the State Board of Equalization. Existing law prescribes various powers and duties to the Franchise Tax Board, including, among other things, the administration of state personal income taxes and corporation franchise and income taxes. Existing law establishes the Office of Tax Appeals (office) in state government and transfers to the office the duty to conduct appeals hearings for the various taxes and fees administered by the department and for the administrative appeals of state personal income taxes and corporation franchise and income taxes. This bill, beginning January 1, 2023, would vest the powers, duties, and responsibilities of the board related to the administration of taxes imposed on insurance and alcoholic beverages in the department. The bill, beginning January 1, 2023, would vest the powers, duties, and responsibilities of the board related to the administration of taxes imposed on property in the Franchise Tax Board. The bill, beginning January 1, 2023, would vest the powers, duties, and responsibilities of the board to conduct appeals hearings in the office. The bill would, for these purposes, also provide for the transfer to the department, the Franchise Tax Board, and the office of the board's employees serving in civil service, the rights and property of the board, and the board's funding, as provided. This bill would additionally remove the Chairperson of the State Board of Equalization from the membership of the Franchise Tax Board, and would instead make the Treasurer a member of the Franchise Tax Board. This bill would become operative only if ACA 2 of the 2019–20 Regular Session is approved by the voters.