SACRAMENTO – State Board of Equalization Member Fiona Ma, CPA, has joined with Assemblyman Bill Dodd to introduce sweeping new legislation strengthening the Kopp Act, which establishes new contribution and reporting standards for the State Board of Equalization.
State Controller Betty Yee also is in strong support of the legislation, AB 1828, which will reform portions of the Kopp Act by banning contributions from individuals and businesses that have appeals cases (adjudicatory proceedings) before the State Board of Equalization a year before the case is adjudicated, and extends that blackout period to one year after the case is adjudicated.
AB 1828 also bans all behested payments, which are donations made directly to charities and non-profits at the request of an elected official, one year prior to, and extending to one year after the case is heard.
In addition, this measure requires State Board of Equalization to be transparent in posting the names of all contributors with cases before the board.
The bill will impose the toughest fundraising and reporting requirements on any state elected officials in California.
“I am pleased to work with Assemblymember Dodd on these tough new campaign finance and reporting standards,” said Fiona Ma. “The Board of Equalization, unlike the Legislature or other constitutional offices, makes decisions that directly affect the bottom line for taxpayers and businesses, sometimes to the tune of millions of dollars. We need to be fair and impartial in our decisions, and these new standards will help ensure we not only avoid a conflict of interest, but even the appearance of a conflict. ”
“I’d like to thank Fiona Ma for her leadership and partnership in fighting for transparency and campaign finance reform. It’s important that the public is given confidence that tax rulings before the Board are based on their merits and absent of the appearance of influence or favoritism,” said Assemblymember Dodd.
“Because of the board’s unique role, members must adhere to the highest ethical standards,” said Yee, the state’s chief fiscal officer. “Steps towards increasing accountability and public confidence in the board’s decisions should be applauded.”
Members of the State Board of Equalization are elected from four districts in California, with the state controller serving as an ex officio fifth member of the board.
The State Board of Equalization not only collects and enforces California sales and use tax, as well as 35 special tax programs (like the tobacco tax), it also serves as the appeals body for tax disputes with either the Franchise Tax Board and the State Board of Equalization.
Dodd’s legislation will make a number of changes to the Kopp Act, which governs contributions made and reported by members of the State Board of Equalization. Among the provisions of AB 1828 are:
· Banning all behested payments, where elected officials seek contributions for charities and non-profits, for a period of one year prior, extending to one year after, a business entity or individual’s case is adjudicated by the State Board of Equalization.
· Requires disclosure within 30 days of any contribution made to a member of the State Board of Equalization within 12 months preceding or subsequent to any SBOE adjudicatory proceeding.
· Requires SBOE to post on its website any contributions made from businesses or individuals with an appeals case before the board 12 months prior or subsequent to a board hearing on their case.
· Revises the definition of “contribution” to explicitly include payments made at the behest of an the State Board of Equalization member, and
· Includes employees of a party, participant or agent, regardless of whether they are working on the case, within the framework of these contribution limits.
AB 1828 was introduced by Assemblymember Dodd on Tuesday, Feb. 9, and is sponsored by Ma. It will be eligible to be heard in Committee in March.