State Board of Equalization: transfer of duties.

The California Constitution establishes the State Board of (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 the Office of Tax Appeals (office) in state government and transferred 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, which are administered by the Franchise Tax Board. A proposed amendment to the California Constitution, Assembly Constitutional Amendment No. 2 of the 2019–20 Regular Session (ACA 2) , would abolish the board and instead require the Legislature to create a state tax agency by statute for purposes of carrying out those powers, duties, and responsibilities previously vested in the board by the California Constitution and by statute. ACA No. 2 would authorize the Legislature to vest all powers, duties, and responsibilities in a single state tax agency or separately in multiple state tax agencies, and would deem the department and the office to be state tax agencies for purposes of these provisions and vest in those entities specified powers, duties, and responsibilities currently vested in the board. This bill would implement ACA 2 by transferring the remaining powers, duties, and responsibilities of the board related to the administration of taxes imposed on property, insurance, and alcoholic beverages, and the duty to adjust the rate of motor vehicle fuel, to the department and the office, as provided. The bill would, for these purposes, also provide for the transfer to the department 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 become operative only if ACA 2 of the 2019–20 Regular Session is approved by the voters.