California Assembly Bill ACA25 Latest Draft

 BILL NUMBER: ACA 25INTRODUCED BILL TEXT INTRODUCED BY Assembly Member DeVore JUNE 22, 2009 A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending subdivision (b) of Section 14 of Article II thereof, by amending subdivision (l) of Section 8 of Article III thereof, by amending subdivision (b) of Section 18 of Article IV thereof, by amending subdivision (b) of Section 5 of, and by amending subdivision (f) of Section 14 of, Article V thereof, by amending subdivision (a) of Section 10 of Article VII thereof, by amending subdivision (j) of Section 3 of, by amending subdivision (g) of Section 11 of, by amending Sections 17, 18, and 19 of, by amending subdivision (h) of Section 28 of, and by adding Sections 17.5 and 17.6 to, Article XIII thereof, by amending Section 10 of Article XVI thereof, by amending the ninth paragraph of subdivision (d) of Section 22 of Article XX thereof, and by amending the heading of, and by amending Section 2 of, Article XXI thereof, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST ACA 25, as introduced, DeVore. Taxation: California Tax Commission. The California Constitution establishes the State Board of Equalization, which includes the Controller and 4 elected members, and provides for the election, recall, and filling of vacancies of board members, and prescribes various powers and duties of the board in connection with property taxes, insurance taxes, and alcoholic beverage taxes. This measure would change the name of the board to the California Tax Commission, would expand the membership to 7 elected members commencing on the Monday after January 1 following a specified gubernatorial election, and would, commencing with the gubernatorial term immediately following that election, add an additional member appointed by the Governor. The measure would require the commission, in addition to performing the duties of the former board, to collect and administer taxes on or measured by income and to conduct administrative reviews of appeals of state tax matter assessments and determinations. The measure would authorize the commission, with the approval of 2/3 of the Senate, to appoint a civil executive officer, exempt from civil service and subject to removal by a specified procedure, to perform duties delegated to him or her by the commission. The measure would also make necessary conforming changes in various other constitutional provisions. This measure would become operative on the first day of the 6th calendar month that commences after the measure is approved by the voters. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. WHEREAS, It is the intent of the Legislature to change the name of the State Board of Equalization to the California Tax Commission; and WHEREAS, It is the intent of the Legislature that the California Tax Commission will continue the existing duties of the State Board of Equalization as well as assume the duties of collecting and administering the taxes imposed under the Personal Income Tax Law and the Corporation Tax Law; and WHEREAS, It is the intent of the Legislature to streamline and consolidate California's tax collection agencies to save taxpayer funds and to simplify administration of our tax system; now, therefore, be it Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2009-10 Regular Session commencing on the first day of December 2008, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows: First-- That subdivision (b) of Section 14 of Article II thereof is amended to read:(b) A petition to recall a statewide officer must be signed by electors equal in number to 12 percent of the last vote for the office, with signatures from each of  5   five  counties equal in number to 1 percent of the last vote for the office in the county. Signatures to recall Senators,  members   Members  of the Assembly, members of the  Board of Equalization   California Tax Commission  , and judges of courts of appeal and trial courts must equal in number 20 percent of the last vote for the office. Second-- That subdivision (l) of Section 8 of Article III thereof is amended to read:() "State officer," as used in this section, means the Governor, Lieutenant Governor, Attorney General, Controller, Insurance Commissioner, Secretary of State, Superintendent of Public Instruction, Treasurer, member of the  State Board of Equalization   California Tax Commission  , and Member of the Legislature. Third-- That subdivision (b) of Section 18 of Article IV thereof is amended to read:(b) State officers elected on a statewide basis, members of the  State Board of Equalization   California Tax Commission  , and judges of state courts are subject to impeachment for misconduct in office. Judgment may extend only to removal from office and disqualification to hold any office under the State, but the person convicted or acquitted remains subject to criminal punishment according to law. Fourth-- That subdivision (b) of Section 5 of Article V thereof is amended to read:(b) Whenever there is a vacancy in the office of the Superintendent of Public Instruction,  the  Lieutenant Governor, Secretary of State, Controller, Treasurer, or Attorney General, or on the  State Board of Equalization   California Tax Commission  , the Governor shall nominate a person to fill the vacancy who shall take office upon confirmation by a majority of the membership of the Senate and a majority of the membership of the Assembly  ,  and who shall hold office for the balance of the unexpired term. In the event the nominee is neither confirmed nor refused confirmation by both the Senate and the Assembly within 90 days of the submission of the nomination, the nominee shall take office as if he or she had been confirmed by a majority of the Senate and Assembly  ;   ,  provided  ,  that  ,  if  such   that  90-day period ends during a recess of the Legislature, the period shall be extended until the sixth day following the day on which the Legislature reconvenes. Fifth-- That subdivision (f) of Section 14 of Article V thereof is amended to read:(f) "State officer," as used in this section, means the Governor, Lieutenant Governor, Attorney General, Controller, Insurance Commissioner, Secretary of State, Superintendent of Public Instruction, Treasurer, and member of the  State Board of Equalization   California Tax Commission  . Sixth-- That subdivision (a) of Section 10 of Article VII thereof is amended to read:(a) No person who is found liable in a civil action for making libelous or slanderous statements against an opposing candidate during the course of an election campaign for any federal, statewide,  Board of Equalization   California Tax Commission  , or legislative office or for any county, city and county, city, district, or any other local elective office  shall   may  retain the seat to which he or she is elected, where it is established that the libel or slander was a major contributing cause in the defeat of an opposing candidate. A libelous or slanderous statement shall be deemed to have been made by a person within the meaning of this section if that person actually made the statement or if the person actually or constructively assented to, authorized, or ratified the statement. "Federal office," as used in this section means the office of United States Senator and Member of the House of Representatives  ; and to   . To  the extent that  the provisions of  this section  do   does  not conflict with any  provision of  federal law, it is intended that candidates seeking the office of United States Senator or Member of the House of Representatives comply with this section. Seventh-- That subdivision (j) of Section 3 of Article XIII thereof is amended to read:(j)  (1)    Immature forest trees planted on lands not previously bearing merchantable timber  ,  or planted or of natural growth on lands from which the merchantable original growth timber stand  ,  to the extent of 70 percent of all trees over 16 inches in diameter  ,  has been removed. Forest trees or timber shall be considered mature at  such   that  time after 40 years from the time of planting or removal of the original timber when so declared by a majority vote of a board consisting of a representative from the State Board of Forestry, a representative from the  State Board of Equalization   California Tax Commission  , and the assessor of the county in which the trees are located.  The   (2)     The  Legislature may supersede the foregoing provisions with an alternative system or systems of taxing or exempting forest trees or timber, including a taxation system not based on property valuation. Any alternative system or systems shall provide for exemption of unharvested immature trees,  shall  encourage the continued use of timberlands for the production of trees for timber products, and  shall  provide for restricting the use of timberland to the production of timber products and compatible uses with provisions for taxation of timberland based on the restrictions.  Nothing in this  This  paragraph shall  not  be construed to exclude timberland from the provisions of Section 8  of this article  . Eighth-- That subdivision (g) of Section 11 of Article XIII thereof is amended to read:(g) Any assessment made pursuant to  Section 11(a) to 11(d)   subdivisions (a) to (d)  , inclusive,  of this Article  shall be subject to review, equalization, and adjustment by the  State Board of Equalization   California Tax Commission  , but an adjustment shall conform to  the provisions of these Sections   those subdivisions  . Ninth-- That Section 17 of Article XIII thereof is amended to read: SEC. 17.  The Board of Equalization   (a)     Until the Monday after January 1 following the November ____, gubernatorial election, the California Tax Commission  consists of  5   five  voting members: the Controller and  4   four  members elected for  4-year   four-year  terms at gubernatorial elections.  Commencing on the Monday after January 1 following the November ____, gubernatorial election, the number of elected members shall increase to seven. Commencing with the Governor elected to the term commencing on that date, the Governor shall, no later than ____ days after commencing a term of office, appoint one member to serve a term ending on the same date as the terms of the elected members.  The State shall be divided into four  Board of Equalization   or seven California Tax Commission  districts  ,   as applicable,  with the voters of each district electing one member.  No   (b)     An elected or appointed  member may  not  serve more than  2   two  terms.  For purposes of this subdivision, the service of a member of the commission, who served as a member of the State Board of Equalization prior to the operative date of the measure adding this subdivision, shall include the years and term, as applicable, during which that member was a member of that   board.   (c) The term of office of a member of the State Board of Equalization serving on the operative date of this subdivision shall not be affected by the measure adding this subdivision, and the member shall continue in office as a member of the commission for the remainder of his or her term.   (d) The Legislature shall enact by statute all laws necessary to carry out this section, including those statutes necessary to establish or change district boundaries.  Tenth-- That Section 17.5 is added to Article XIII thereof, to read: SEC. 17.5. In addition to its other powers and duties granted by this Constitution, the California Tax Commission shall collect and administer taxes on or measured by income that are imposed on persons, corporations, or other entities as prescribed by law. The commission shall also conduct administrative reviews of appeals of state tax assessments and determinations. Eleventh-- That Section 17.6 is added to Article XIII thereof, to read: SEC. 17.6. The California Tax Commission, with the approval of two-thirds of the membership of the Senate, may appoint an executive officer who shall be a civil executive officer exempt from civil service, and who shall perform those duties that are delegated to him or her by the commission. The executive officer may be removed by a two-thirds vote of the membership of the commission. Twelfth-- That Section 18 of Article XIII thereof is amended to read: SEC. 18. The Board   California Tax Commission  shall measure county assessment levels annually and shall bring those levels into conformity by adjusting entire secured local assessment rolls. In the event a property tax is levied by the State, however, the effects of unequalized local assessment levels, to the extent any remain after  such  adjustments  made pursuant to this section  , shall be corrected for purposes of distributing this tax by equalizing the assessment levels of locally and state-assessed properties and varying the rate of the state tax inversely with the counties' respective assessment levels. Thirteenth-- That Section 19 of Article XIII thereof is amended to read: SEC. 19. The  Board   California Tax Commission  shall annually assess  (1)   (a)  pipelines, flumes, canals, ditches, and aqueducts lying within  2   two  or more counties and  (2)   (b)  property, except franchises, owned or used by regulated railway, telegraph, or telephone companies, car companies operating on railways in the State, and companies transmitting or selling gas or electricity. This property shall be subject to taxation to the same extent and in the same manner as other property. No other tax or license charge may be imposed on these companies  which   that  differs from that imposed on mercantile, manufacturing, and other business corporations. This restriction does not release a utility company from payments agreed on or required by law for a special privilege or franchise granted by a government body. The Legislature may authorize  Board assessment of   the commission to assess  property owned or used by other public utilities. The  Board   commission  may delegate to a local assessor the duty to assess a property used but not owned by a state assessee on which the taxes are to be paid by a local assessee. Fourteenth-- That subdivision (h) of Section 28 of Article XIII thereof is amended to read:(h) The taxes provided for by this section shall be assessed by the  State Board of Equalization   California Tax Commission  . Fifteenth-- That Section 10 of Article XVI thereof is amended to read: SEC. 10. Whenever the United States government or any officer or agency thereof  shall provide   provides  pensions or other aid for the aged, co-operation by the State  therewith and therein  is hereby authorized in  such   the  manner and to  such   the  extent as may be provided by law. The money expended by any county, city and county, municipality, district or other political subdivision of this State made available under  the provisions of  this section shall not be considered as a part of the base for determining the maximum expenditure for any given year permissible under Section 20 of Article XI of this Constitution independent of the vote of the electors or authorization by the  State Board of Equalization   California Tax Commission  . Sixteenth-- That the ninth paragraph of subdivision (d) of Section 22 of Article XX thereof is amended to read:The  State Board of Equalization   California Tax Commission  shall assess and collect  such  those  excise taxes as are or may be imposed by the Legislature on account of the manufacture, importation and sale of alcoholic beverages in this State. Seventeenth-- That the heading of Article XXI thereof is amended to read: ARTICLE XXI REDISTRICTING OF SENATE, ASSEMBLY, CONGRESSIONAL AND  BOARD OF EQUALIZATION   CALIFORNIA TAX COMMISSION  DISTRICTS Eighteenth-- That Section 2 of Article XXI thereof is amended to read: SEC. 2. (a) The Citizens Redistricting Commission shall draw new district lines (also known as "redistricting") for State Senate, Assembly, and  Board of Equalization   California Tax Commission  districts. This commission shall be created no later than December 31 in 2010, and in each year ending in the number zero thereafter. (b) The Citizens Redistricting Commission (hereinafter the "commission") shall: (1) conduct an open and transparent process enabling full public consideration of and comment on the drawing of district lines; (2) draw district lines according to the redistricting criteria specified in this article; and (3) conduct themselves with integrity and fairness. (c) (1) The selection process is designed to produce a  Citizens Redistricting Commission   commission  that is independent from legislative influence and reasonably representative of this State's diversity. (2) The  Citizens Redistricting Commission   commission shall consist of 14 members, as follows: five who are registered with the largest political party in California based on registration, five who are registered with the second largest political party in California based on registration, and four who are not registered with either of the two largest political parties in California based on registration. (3) Each commission member shall be a voter who has been continuously registered in California with the same political party or unaffiliated with a political party and who has not changed political party affiliation for five or more years immediately preceding the date of his or her appointment. Each commission member shall have voted in two of the last three statewide general elections immediately preceding his or her application. (4) The term of office of each member of the commission expires upon the appointment of the first member of the succeeding commission. (5) Nine members of the commission shall constitute a quorum. Nine or more affirmative votes shall be required for any official action. The three final maps must be approved by at least nine affirmative votes which must include at least three votes of members registered from each of the two largest political parties in California based on registration and three votes from members who are not registered with either of these two political parties. (6) Each commission member shall apply this article in a manner that is impartial and that reinforces public confidence in the integrity of the redistricting process. A commission member shall be ineligible for a period of 10 years beginning from the date of appointment to hold elective public office at the federal, state, county, or city level in this State. A member of the commission shall be ineligible for a period of five years beginning from the date of appointment to hold appointive federal, state, or local public office, to serve as paid staff for the Legislature or any individual legislator or to register as a federal, state, or local lobbyist in this State. (d) The commission shall establish single-member districts for the Senate, Assembly, and State Board of Equalization   California Tax Commission  pursuant to a mapping process using the following criteria as set forth in the following order of priority: (1) Districts shall comply with the United States Constitution. Senate, Assembly, and  State Board of Equalization   California Tax Commission  districts shall have reasonably equal population with other districts for the same office, except where deviation is required to comply with the federal Voting Rights Act or allowable by law. (2) Districts shall comply with the federal Voting Rights Act (42 U.S.C. Sec. 1971 and following). (3) Districts shall be geographically contiguous. (4) The geographic integrity of any city, county, city and county, neighborhood, or community of interest shall be respected to the extent possible without violating the requirements of any of the preceding subdivisions. Communities of interest shall not include relationships with political parties, incumbents, or political candidates. (5) To the extent practicable, and where this does not conflict with the criteria above, districts shall be drawn to encourage geographical compactness such that nearby areas of population are not bypassed for more distant population. (6) To the extent practicable, and where this does not conflict with the criteria above, each Senate district shall be comprised of two whole, complete, and adjacent Assembly districts, and each  Board of Equalization   California Tax Commission  district shall be comprised of 10 whole, complete, and adjacent Senate districts. (e) The place of residence of any incumbent or political candidate shall not be considered in the creation of a map. Districts shall not be drawn for the purpose of favoring or discriminating against an incumbent, political candidate, or political party. (f) Districts for the Senate, Assembly, and  State Board of Equalization   California Tax Commission  shall be numbered consecutively commencing at the northern boundary of the State and ending at the southern boundary. (g) By September 15 in 2011, and in each year ending in the number one thereafter, the commission shall approve three final maps that separately set forth the district boundary lines for the Senate, Assembly, and  State Board of Equalization   California Tax Commission  districts. Upon approval, the commission shall certify the three final maps to the Secretary of State. (h) The commission shall issue, with each of the three final maps, a report that explains the basis on which the commission made its decisions in achieving compliance with the criteria listed in subdivision (d) and shall include definitions of the terms and standards used in drawing each final map. (i) Each certified final map shall be subject to referendum in the same manner that a statute is subject to referendum pursuant to Section 9 of Article II. The date of certification of a final map to the Secretary of State shall be deemed the enactment date for purposes of Section 9 of Article II. (j) If the commission does not approve a final map by at least the requisite votes  ,  or if voters disapprove a certified final map in a referendum, the Secretary of State shall immediately petition the Supreme Court for an order directing the appointment of special masters to adjust the boundary lines of that map in accordance with the redistricting criteria and requirements set forth in subdivisions (d), (e), and (f). Upon its approval of the masters' map, the court shall certify the resulting map to the Secretary of State, which map shall constitute the certified final map for the subject type of district. Nineteenth-- That this measure shall become operative on the first day of the sixth calendar month that commences after the effective date of this measure.