The Mercury News

Officials questioned by Attorney General’s Office

- By Katy Murphy kmurphy@bayareanew­sgroup.com Contact Katy Murphy at 916-441-2101.

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.

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