Tax Panel Member Told to Quit : Politics: Lungren says Board of Equalization’s Bennett must be removed because of conviction for filing false expense reports. Governor can appoint replacement immediately.

Atty. Gen. Dan Lungren advised state officials Thursday that California law requires State Board of Equalization member William Bennett to step down from his $95,000-a-year post because of his conviction on a charge that he filed false expense reports.

Lungren said technically Bennett’s seat has been vacant since Feb. 21, when he pleaded no contest to a misdemeanor that involved a “violation of his official duties.”

He said Gov. Pete Wilson is free to immediately appoint a replacement, a move that is expected to pave the way for Republicans to assume majority control of the powerful tax board. Bennett is one of three Democrats who sit on the five-member board that hears appeals of state income tax cases and oversees the collection of billions of dollars in sales and other business taxes.

“There is no question that the statute is very specific with respect . . . to an action involving official activities,” Lungren said. “Suspension from office takes place immediately upon entry of the plea.”

James Lee, a spokesman for Wilson, said the governor believes that the Lungren opinion gives him the “legal basis for considering the seat vacant.” He said the governor will move as quickly as possible to name a replacement.

But Bennett’s attorney, James Brosnahan of San Francisco, said his client has not decided if he will step down from the post or force the attorney general to seek legal action to have him removed.

Brosnahan said he did not agree with the attorney general’s opinion and doubted that the courts would accept his legal reasoning.

“Remember, no court in California has ever removed an officeholder for a misdemeanor involving events which occurred during a prior term,” he said. “I think that’s central and important and I think it casts a very dark shadow on the legitimacy of the opinion.”

The charge against Bennett involved a June, 1988, travel claim for which he collected reimbursement. The state contended that the claim filed by Bennett included expenses for hotel costs that Bennett never incurred.

In return for Bennett’s plea of no contest to the single misdemeanor count, Sacramento County Dist. Atty. Steve White agreed to drop a 23-count felony complaint that had accused Bennett of filing numerous other false claims.

A Municipal Court judge ordered the 74-year-old officeholder to pay a $1,000 fine, to reimburse the state $5,500 and to perform 200 hours of community service.

Brosnahan said he is appealing Bennett’s conviction, claiming that the district attorney misinterpreted the state’s travel regulations.

Both Brosnahan and State Board of Equalization Chairman Brad Sherman, a Democrat, accused Lungren of issuing a “political” opinion designed to give Republicans control of the board.

“There’s a great deal at stake for a lot of people who have a lot of wealth in California on the question of this seat,” Brosnahan said.

Sherman, a Democrat who is expected to lose his chairmanship once Republicans gain control of the board, said Lungren’s opinion has no force of law and the courts are the “proper body” to determine Bennett’s status.

Lungren’s opinion was supported by Dist. Atty. White, a Democrat, who agreed that Bennett was not entitled to hold office.

The two Republicans on the State Board of Equalization called on Bennett to step down.

“Every day that Mr. Bennett continues to sit on the board he diminishes the public’s trust and confidence in government,” said board member Ernest Dronenburg Jr.

In light of Lungren’s opinion, Dronenburg said he will ask state Controller Gray Davis to stop paying Bennett’s salary.

“Any further payment would be without legal authority,” he said.