43.
(a) (1) The Legislature requests that the Regents of the University of California, through a new or existing research center, perform a comprehensive assessment of major tax expenditures consistent with the terms of this section.
(2) This section shall apply to the University of California only to the extent that the Regents of the University of California, by resolution, make any of these provisions applicable to the university.
(b) By July 1, 2021, the center identified
pursuant to subdivision (a) shall present a comprehensive, peer-reviewed assessment of major tax expenditures to the California Tax Expenditure Review Board at a public meeting of the board.
(c) To the extent that the University of California needs access to taxpayer data and information, the Department of Finance shall ensure relevant taxpayer data is made available and shall ensure appropriate levels of data security and protections are in place for transferred and sensitive data.
(d) The scope of the comprehensive assessment shall include, but is not limited to, the following, to the extent possible and reasonably related to the major tax expenditure:
(1) A description of the legislative intent for each tax expenditure, if the act adding or amending the expenditure contains legislative
findings and declaration of that intent or that legislative intent is otherwise expressed or specified by that act.
(2) A brief description of the beneficiaries of the tax expenditure as provided by state law.
(3) The number of returns filed or business entities affected, as applicable, for the most recent tax year for which full year data is available.
(4) A listing of any comparable federal tax benefit, if any.
(5) A description of any recent prior tax expenditure evaluation or compilation of information completed by any state agency.
(6) The economic, social, or any other benefits of the tax expenditure to the State of California.
(7) Total net General Fund dollars lost due to the tax expediture, expenditure, including what impact the shift in resources has on other General Fund programs.
(8) Total reduction in the amount of General Fund proceeds of taxes for purposes of the calculation required by subdivision (b) of Section 8 of Article XVI of the California Constitution, known as Proposition 98, due to the tax expenditure, including what impact the shift in resources has on educational programs.
(9) Potential environmental impacts, if any, of the tax expenditure.
(10) A longer-term analysis outlining the true beneficiaries versus intended
beneficiaries of the tax expenditure and its impact on the business climate and market conditions.
(11) Jobs created by the tax expenditure. For the information required specified by paragraphs (A) and (B), the data must
shall include, in the aggregate, and to the extent possible and reasonably related to the major tax expenditure, demographics on gender, race, ethnicity, and age.
(A) Whether the jobs created were short or long term, as well as the average salary and benefits provided for the jobs created.
(B) Jobs lost or reduced in areas impacted by the tax expenditure or whether jobs were shifted to other sectors.
(f)
(e) After receiving the comprehensive assessment from the Legislative Analyst’s Office, center, the board shall post it on its internet website.
(g)
(f) (1) After the comprehensive assessment of the major tax expenditure has been posted on the board’s internet website for at least 14 days, and no later than two months from the date the board posts the comprehensive assessment on its internet website, the board shall meet in public for the purposes of
voting to make a recommendation to the Legislature regarding the major tax expenditure. The votes of three members are necessary to make a recommendation to the Legislature. Any recommendation shall be subject to enactment by the Legislature. Nothing in this section shall be construed to preclude the Legislature from taking action independently to amend, sunset, or repeal existing tax expenditures.
(2) The board shall consider information provided by the public in response to the comprehensive assessment at the meeting before making the recommendation.
(3) The recommendation from the board to the Legislature shall include, but is not limited to, the following:
(A) The extent to which the major tax expenditure is a cost-effective use of resources compared to other options to address the same purpose, intent, or
goal.
(B) An analysis of the major tax expenditure’s effect on the state’s General Fund.
(C) An analysis of the major tax expenditure’s effect on employment, wages, and the state’s economy.
(D) Whether opportunities exist to improve the effectiveness of the major tax expenditure in meeting its purpose, intent, or goal; if no such opportunities exist, whether the Legislature should enact legislation to repeal the major tax expenditure.
(h)
(g) By January 1, 2022, and each January 1 thereafter,
the board shall provide a report to the Legislature that compiles all of its recommendations regarding major tax expenditures made in the previous calendar year, expenditures, including any recommendation the board failed to make for a major tax expenditure in for which the Legislative Analyst’s Office
University of California has completed a comprehensive assessment, and the reasons for the failure. The board shall also submit the report to the Senate Committee on Budget and Fiscal Review, the Senate Committee on Governance and Finance, the Assembly Committee on Budget, and the Assembly Committee on Revenue and Taxation, and post it on its internet website. The report to the Legislature shall be submitted in compliance with Section 9795 of the Government Code.
(i)
(h) Upon receipt of the report required by subdivision (h),
(g), the Senate Committee on Governance and Finance and the Assembly Committee on Revenue and Taxation shall hold a joint public hearing on the report by August 15 of the second year of each the legislative session.
(i) This section shall become inoperative on the date six months after the hearing in subdivision (h).