Officials questioned by Attorney General’s Office
Investigators with the state Attorney General’s Office are questioning leaders and employees of the embattled Board of Equalization as part of a state probe that could lead to criminal or civil penalties, a spokesman for the tax board confirmed Tuesday.
The interviews have been taking place for the past several weeks, said Board of Equalization spokesman Mark DeSio. That’s the same period California lawmakers were negotiating and approving a plan to strip the five-member board of its powers and replace it with a new state agency within the governor’s administration.
The probe, first reported Tuesday by the Sacramento Bee, was requested in April by Gov. Jerry Brown. The Attorney General’s Office has not confirmed the investigation.
While the scope of the attorney general’s investigation is unclear, elected officials in California can be prosecuted if they use state resources for political events; use their position for political gain; or knowingly misuse taxpayer money.
A March audit by the Department of Finance found that elected board members were interfering with the agency’s daily operations and redirecting employees to work on their outreach projects. It also reported receiving complaints of a hostile work environment, with employees worried about raising their concerns.
In April, Board of Equalization Executive Director David Gau told a Senate committee that someone — whom he did not name — had threatened him. He reports directly to elected board members.
As part of a budget deal reached with the governor’s office, lawmakers on Thursday approved a bill that would gut the board and create a new tax-collection agency — the California Department of Tax and Fee Administration — whose director reports to the governor.
Republican lawmakers opposed the plan, saying it amounted to a power grab by the administration, but Democrats said the overhaul was needed. Sen. Richard Roth, D-Riverside, said he was even stopped in an airport by someone at the agency with deep concerns about the work environment.
“Something had to be done,” Roth said in an interview last week.
The Sacramento Bee contributed to this story.