Assemblymember Bill Dodd, State Board of Equalization Member Fiona Ma Introduce SBOE Ethics & Reporting Reform Legislation

Sacramento—State Board of Equalization Member Fiona Ma, CPA, joined with Assemblymember Bill Dodd to introduce sweeping new legislation strengthening the Kopp Act, which establishes ethics and reporting standards for the State Board of Equalization. The Legislation, AB 1858, will reform portions of the Kopp Act by banning contributions from individuals and businesses that have cases before SBOE, as well as banning all behested payments, which are donations made directly to charities and non-profits at the request of an elected official. AB 1858 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.

AB 1858 imposes a number of new standards on fundraising and campaign finances reporting for members of the SBOE. Members of SBOE are elected from four districts in California, with the State Controller serving as an ex officio fifth member of the Board. SBOE not only collects and enforces California sales & 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 SBOE.

Assemblymember Dodd’s legislation will make a number of changes to the Kopp Act, which governs contributions made and reported by members of SBOE. Among the provisions of AB 1858 are:

• Banning all behested payments, where elected officials seek contributions for charities and non-profits, for a period of one year prior, to one year after, a business entity or individual’s case is heard by SBOE
• Requires disclosure within 30 days of any contribution made to a member of SBOE 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 cases before the board 12 months prior or subsequent to a Board Hearing on their item
• Revises the definition of “contribution” to explicitly include payments made at the behest of an SBOE member, and
• Includes employees of a party, participant and agent, regardless of whether they are working on the case, within the framework of these contribution limits

AB 1858 was introduced by Assemblymember Dodd on Tuesday, February 9th,, and is sponsored by Ms. Ma. It will be eligible to be heard in Committee in March.

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