CA SB86

Establishes the California Department of Tax and Fee Administration in the Government Operations Agency, with a director appointed by the Governor and confirmed by the Senate, to assume most tax and fee administration duties from the State Board of Equalization effective July 1, 2017.

Creates the Office of Tax Appeals as an independent entity with tax appeals panels composed of three administrative law judges each to conduct all tax appeals hearings starting January 1, 2018, removing this function from the State Board of Equalization.

Restricts the State Board of Equalization to its constitutional duties only: property tax assessment review, county assessment level measurement, pipeline and utility property assessment, insurer tax assessment, and alcoholic beverage excise tax collection, plus adjustment of motor vehicle fuel tax for fiscal year 2018–19.

Limits State Board of Equalization elected members to one Sacramento office and one district office, two exempt staff persons each, and removes their authority to appoint employees, modify budgets, interfere with legislative analyses, or conduct district investigations.

Appropriates $5,000,000 from the General Fund to the Office of Tax Appeals for implementation costs and creates new criminal penalties for unauthorized disclosure of taxpayer business information by departmental officials.