State Board to Investigate. The said board shall investigate the nature of the property and its use, and, if an agreement between the said board, the assessor, and the company as to the proper classification of such property cannot be reached, then the said board shall, under such rules of notice as it may deem reasonable, set a date for a hearing, at which the assessor and the company may be present or represented.

Hearing and Decision by State Board.-At such hearing the board shall, from the evidence presented and from the best information it can obtain, decide the matter in dispute, and determine whether such property is operative or nonoperative or in what proportion operative and in what proportion nonoperative. The said board shall enter its decision in its minutes, and shall send a copy thereof to the assessor and the company, and also to the proper officer of any city affected thereby. Said decision shall be binding upon all parties, the State, the county, city and county, municipality, or district, and the company, unless set aside by a court of competent jurisdiction, and each such assessor must note the decision on his assessment-roll, and must assess such property accordingly.

State Board to Report to Assessor and Company Property Improperly Claimed as Operative Property.—If the State board of equalization shall find in the report of operative property furnished to said board by any company under the provisions of section 9 of this act, any piece or parcel of property which said board regards as nonoperative property, or partially operative and partially nonoperative, the board shall, within thirty days after receiving such report, notify said company thereof in writing, which notice shall contain a general description of the property and the reasons for regarding the same as nonoperative. It shall also mail a copy of the notice to any assessor in whose county, city and county, municipality, or district the property is located. If an agreement between the said board, the assessor, and the company as to the proper classification of such property cannot be reached, then the said board shall, under such rules of notice as it may deem reasonable, set a date for a hearing, at which the assessor and the company may be present or represented. Hearing and Decision by State Board.-At such hearing the board shall, from the evidence presented and from the best information it can obtain, decide the matter in dispute, and determine whether such property is operative or nonoperative, or in what proportion operative and in what proportion nonoperative. The said board shall enter its decision in its minutes, and shall send a copy thereof to the assessor and the company, and also to the proper officer of any city affected thereby. Said decision shall be binding upon all parties, the State, the county, city and county, municipality, or district, and the company, unless set aside by a court of competent jurisdiction, and each such assessor must note the decision on his assessment-roll and must assess the property accordingly.

Insurance Commissioner to Report.-The insurance commissioner of this State must on or before the last day of March in each year, make and file with the State board of equalization a report showing:

1. Companies.-All companies, domestic and foreign, and all firms, associations, or persons, engaged in the business of insurance in this State.

2. Gross Premiums. The total amount of the gross premiums received from its business in this State by each of said companies, firms, associations, and persons during the year ending the thirty-first day of December last preceding.

3. Return Premiums and Reinsurance. The amount of return premiums paid on business done in this State and the amount of reinsurance on business done in this State paid to other insurance companies or associations authorized to do business in this State, by said companies, firms, associations and persons, during said year.

4. Local Taxes.-The amount of any county and municipal taxes paid during said year by such companies on real estate owned by them in this State, and where said real estate is located.

Companies Subject to Retaliatory Law.-In making this report he shall list separately all those companies, firms, associations, or persons, which, under the second proviso in subdivision (b) of section 14 of article 13 of the constitution and of section 3 of this act, are subject to a tax at a rate higher than one and one-half per cent on their gross premiums, or to any additional tax or burden, and shall indicate in each case the amount and character of said tax or burden.

Additional Statements by Insurance Companies.-Every company, firm, association, or person engaged in the business of insurance in this State shall file with the insurance commissioner on or before the first Monday in March in each year such statements in addition to, or in modification of, the statements required to be rendered under the provisions of article 16 of chapter 3 of title I of part III of the Political Code as said insurance commissioner shall deem necessary to enable him to prepare the report required of him in this section and said statements shall be verified in the same manner as is provided for the verification of other statements by insurance companies in section 610 of the Political Code, except that, those filed by foreign companies shall be verified by the oath of the manager thereof residing within this State.

Bank Reports.-The president, secretary, treasurer, cashier, or such other officer as the State board of equalization may determine, of every bank referred to in section 14 of article 13 of the constitution of this State, shall on the first Monday in March or within ten days thereafter make and file with the State board of equalization a sworn statement showing the condition of said bank at the close of business on the first Monday in March, and showing the amount of its authorized capital stock, the number of shares issued and the par value thereof, the amount received for stock issued, the amount of its surplus and undivided profits, if any, a complete list of the names and residences of its stockholders and the number of shares held by each as of record on the books of the bank at the close of business on the first Monday in March.

Unincorporated Banks, Branches, etc.-Or, in the case of unincorporated banks and bankers, of banks having no capital stock and of

branches, agencies, or other representatives of banks doing business outside of this State, the moneyed capital, reserve, surplus, undivided profits, and other taxable property, as further defined in section 14 of article 13 of the constitution of this State, used by them in the banking business in this State, also a description of the real estate, other than mortgage interests therein, and the value of each piece thereof as assessed for the purpose of county taxation for the then current fiscal year. Branches, agencies, or other representatives of banks doing business outside of this State, shall report the average amount owed by said branches, agencies, or other representatives, to the banks of which they are branches, agencies, or representatives, during the year ending the first Monday in March, also a description of the real estate other than mortgage interests therein, and the value of each piece thereof as assessed for the purpose of county taxation for the then current fiscal year.

Form of Reports.-The State board of equalization shall prescribe the form of reports, the manner of their verification, and may require the submission of tax receipts, or copies thereof certified to be correct by any notary public, in order to verify the statements as to the assessed value of the real estate, and may require such further information or statements as said board may deem necessary.

Secretary of State to Report Corporations, etc.-The Secretary of State shall before the first day of April in the year one thousand nine hundred and eleven report to the State board of equalization the names, principal place of business, date of incorporation, term of existence, number of charter, and the funded debt if any, and the then authorized capital stock of all corporations whether formed under the laws of this State or of some other state or country, a copy of whose articles of incorporation is on file in his office, and which are authorized to do business in this State, and at such times thereafter and as often as the State board of equalization shall determine, report to said board the same information concerning all new corporations whether formed under the laws of this State or of any other State or country a copy of whose articles of incorporation shall have been filed in his office together with the amount of the capital stock thereof and also the names and principal place of business of all corporations filing designation of agents or certificates of increase or decrease of capital stock in his office with the amount of the increase or decrease of the capital stock thereof. Owners of Franchises to Report. The owner or holder of every franchise subject to taxation as provided in section 5 of this act, shall within ten days after the first Monday in March in each year make a written report to the State board of equalization, signed and sworn to by the holder or owner himself, if an individual, or by one of the copartners if such owner or holder is a copartnership, or by the president or vice-president and the treasurer or secretary if the owner is a corporation. containing such a concise statement or description of every franchise possessed or enjoved on said day by such owner or holder, as the State board of equalization may prescribe, a copy of the law, grant, ordinance, or contract under which the same is held, or if possessed or enjoyed under a general law, a reference to such law, a

statement of any condition, obligation, or burden imposed upon such franchise, or under which the same is enjoyed, and containing also:

1. Name. The name of the company, its nature, whether a person or persons, a partnership (with names of partners), an association, or corporation, and under the laws of what State, Territory, or country organized, the nature of its business, the location of its principal place of business, the names and postoffice addresses of its president, secretary, auditor, treasurer, superintendent, and general manager, the location. of its principal place of business in this State, the name and post office address of its chief officer or managing agent in this State, and the names and addresses of all subsidiary companies whose property and business are operated by it.

2. Capital Stock. The amount of its authorized capital stock, the amount thereof issued and outstanding on the first Monday in March, and the amount paid in thereon or the value of the property received therefor.

3. Funded and Other Debts.-The funded and floating debts and the interest paid thereon showing separately the debts of the operating company and of any subsidiary companies in this State on the thirty-first day of December last preceding.

4. Market Value Stocks and Bonds.-The market value of the stock and of the outstanding bonds, or, when said stocks or bonds have no market value, the actual value thereof, for such periods and for such dates as the State board of equalization shall prescribe.

5. Assessed Value of Property.-The assessed value of its property as shown by the last completed assessment-roll in each county, city and county, and city in the State for the purposes of taxation, and if any property of such corporation be assessed and taxed outside of the State of California the place where assessed, the amount of such assessment and taxes there paid the current fiscal year.

5a. Actual Value of Nonassessable Property. The market and actual value of all nonassessable real and personal property owned by such company.

5b. Actual Value of Property Owned. The amount and actual value of all of said real and personal property referred to in the last two preceding sections, that is owned and possessed by the company at the date of its report; also, the amount and actual value of any other and additional real or personal property owned by the company at the date of said report.

6. Dividends. The dividends paid during the year ending the thirty-first day of December last preceding, the surplus fund, if any, on said thirty-first day of December, or between such periods as the State board of equalization may determine. Those of the operating company and of each subsidiary company in this State to be shown separately.

7. Gross Receipts. The gross receipts from all sources for the year ending the thirty-first day of December last preceding, from the entire property and business, the gross receipts from such classes of business as the State board may designate, to be reported separately; also, the total gross receipts from intrastate business and from interstate busi

ness so far as the same relate to this State, the same to be separately stated.

8. Operating Expenses.-The operating and other expenses.

9. Profit and Loss.-The balances of profit and loss, between such periods as the State board of equalization may determine.

10. Other Matters.-Such other matters as the State board of equalization may deem necessary in order to enable it to assess and levy the taxes provided for in section 14 of article 13 of the constitution of the State.

State Board to Assess Franchises.-The State board of equalization shall ascertain and determine from the foregoing reports or from the best information it can obtain the actual cash value on the first Monday in March of each such franchise, and shall assess and levy the taxes thereon in accordance with the provisions of subdivision (d) of section 14 of article 13 of the constitution of this State.

Assessor to Report to State Board.-Every assessor or auditor shall, in the manner, at the times and for the year required by the State board of equalization, report to said board upon such forms as may be prescribed by said board the valuation placed by him upon the property of any company subject to an assessment upon its franchise under the provisions of this act.

Arbitrary Assessment in Case of Failure or Refusal to Report.—If any company mentioned in section 1 of this act shall fail or refuse to furnish to the State board of equalization within the time prescribed in this act the verified report provided for in this act, the State board of equalization must note such failure or refusal in the record of assessments for State taxes hereinafter in this act provided for, and must make an estimate of the amount of the gross receipts, gross premiums, value of the shares of capital stock, or value of the franchises, of such company and must assess the same at the amount thus estimated, which assessment shall be the assessment upon which the taxes upon the property or franchise of the company for such year shall be levied and collected as provided for in this act. And if in the succeeding year any such company shall again fail or refuse to furnish the verified report required by this act, the State board shall make an estimate of the amount of the gross receipts, gross premiums, value of the shares. of capital stock, or value of the franchise of such company, which estimate shall not be less than twice the amount of the estimate made by said board in the previous year, and shall note such failure or refusal as above provided, and the said estimate so made shall be the assessment upon which the taxes upon the property or franchise of the company for such year shall be levied and collected as provided for in this act. In case of each succeeding consecutive failure or refusal the said board shall follow the same procedure until a true statement shall be furnished.

Penalty for Failure or Refusal to Report.-Any company failing or refusing to make and furnish any report prescribed in this act or rendering a false or fraudulent report shall be guilty of a misdemeanor