Approved 2001 Minutes - Thursday, May 31, 200

The Board met at its offices at 450 N Street, Sacramento, at 9:30 a.m. with Chairman Parrish, Mr. Klehs and Mr. Andal present.

ANNOUNCEMENT OF CLOSED SESSION

The Board recessed immediately in closed session with Mr. Parrish, Mr. Klehs and Mr. Andal present.

CLOSED SESSION

The Board met to discuss and Revenue and Taxation codes 7093.5, 7093.5(b)(3), 30459.1 and 50156.11 settlements and personnel matters.

The Board recessed at 9:31 a.m. and reconvened at 9:35 a.m. in open session with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Dr. Connell.

EQUAL EMPLOYMENT OFFICE FUNCTION

James Speed, Executive Director, made introductory remarks regarding the Equal Employment Office Function.

No vote was taken. The Board deferred this item to the next Sacramento Board Meeting.

2001-02 TOBACCO PRODUCTS TAX RATE SETTING

Dennis Maciel, Chief, Excise Taxes Division, made introductory remarks regarding the Tobacco Rate for fiscal year 2001-2002 (Exhibit 5.15).

Public Speakers:

Dave Ackerman, Advocate, U.S. Smokeless Tobacco Co.

Robert L. Shepherd, Attorney, UST

Lisa Rea, Legislative Director, American Heart Association

Paul Knepprath, Vice President, Government Relations, American Lung Association

Dennis Loper, Representative, CA Distributors Association

Roger Ehlers, Attorney, McCutchen, Doyle, Brown & Enersen

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Dr. Connell voting yes, the Board ordered to request an increase of funding from the Legislature for the enforcement of tobacco smuggling.

Upon motion of Dr. Connell, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Dr. Connell voting yes, the Board ordered to defer this matter to the next Board Meeting, directing staff to schedule an Interested Parties Meeting to discuss this matter further.

Exhibits to these Minutes are incorporated by reference.

SPECIAL PRESENTATION

On behalf of the Board, Mr. Chiang presented to Windie Scott, Legal Counsel, a resolution extending its sincere and grateful appreciation for her dedicated service to the State Board of Equalization and the State of California.

The Board recessed at 10:55 and reconvened at 11:05 with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal present, Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

ADMINISTRATIVE MATTERS, CONSENT

With respect to the Administrative Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel made the following orders:

Action: Adopt the following resolution extending its best wishes on their respective retirements and its appreciation for their service to the State Board of Equalization and the State of California (Exhibit 5.16).

Hanson Hwa, Business Taxes Representative, San Diego District Office
Patsy E. Weisinger, Tax Technician III, Return Analysis Section, Headquarters
Clifton Richardson, Tax Technician II, Return Analysis Section, Headquarters
Action: Adopt the Board Meeting Minutes of March 7-8, 2001 and March 28-29, 2001.

Action: Approve rail transportation property to be assessed at 75.56 percent of market value for the 2001-02 roll (Exhibit 5.17).

Action: Approve the appointment of David Peets, Alpine County Assessor, to the 2001 Timber Advisory Committee.

LEGISLATIVE COMMITTEE

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report (Exhibit 5.18).

CUSTOMER SERVICES & ADMINISTRATIVE EFFICIENCY COMMITTEE

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report (Exhibit 5.19).

BUSINESS TAXES COMMITTEE

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report (Exhibit 5.20).

PROPERTY TAX COMMITTEE

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the committee report (Exhibit 5.21).

CHIEF COUNSEL MATTERS – RULEMAKING

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board authorized the publication of Regulation 1684, Collection of Use Tax by Retailers (Exhibit 5.22).

LEGAL APPEALS MATTERS, ADJUDICATORY

Cadence Design Systems, Inc., 89000904770, -780, -790, -800, -810, -820
9-1-95 to 3-31-96, $399.50 Claim for Refund
6-1-96 to 6-30-97, $356.86 Claim for Refund
12-1-97 to 9-30-98, $196.47 Claim for Refund
3-1-97 to 3-31-97, $ 80.71 Claim for Refund
9-1-97 to 9-30-97, $75.43 Claim for Refund
3-1-98 to 3-31-98, $102.74 Claim for Refund
Considered by the Board: Hearing Notice Sent – Appearance Waived
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang not participating, the Board ordered that the claim for refund petition be denied.

Quantum Corporation, TU ET 35-101232; 89000904850, -860; 33893
9-1-95 to 12-31-95, $ 386.72 Claim for Refund
12-1-95 to 12-31-95, $ 656.96 Claim for Refund
1-1-96 to 12-31-97, $3,196.47 Claim for Refund
Considered by the Board: Hearing Notice Sent – Appearance Waived
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the claim for refund petition be denied.

B & D Litho, SC OH 30-690550; 89000871770
7-1-93 to 6-30-96, $Unstated
Considered by the Board: Memorandum Opinion
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted the memorandum opinion.

Charles L. & Evelyn M. Harmon, SR EH 23-833110; 33961
1-1-96 to 12-31-98, $11,881.84 Tax, $00.00 Penalty
Considered by the Board: April 19, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Estate of Ms. Aenne Quarm (Deceased), SR CH 53-000289; 89000970150
1-1-90 to 6-30-95, $23,696.61 Tax, $4,339.03 Penalty, Negligence
William McCrae, SR CH 53-000292; 89000970160
1-1-90 to 6-30-95, $91,394.73 Tax, $9,923.56 Penalty, Negligence
Considered by the Board: January 4, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Simon B. Purll, SR EA 97-193531; 89002073570
7-1-95 to 3-31-98, $2,819.57 Tax; $260.82 Penalty, Failure to File
Considered by the Board: January 24, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be brought back before the Board at the next Sacramento Board Meeting.

Blaisdell Construction, Inc., SR KHE 97-324306; 37274
06 01 98 to 06 30 98, $27,267.25 Claim for Refund
Considered by the Board: April 19, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Mr. Parrish and Ms. Mandel voting no, the Board ordered that the claim for refund petition be denied.

Cecil Tse-Hsing Hsu, SR AC 99-278927; 89002180500
5-15-93 to 3-31-97, $166,699.38 Tax, $41,674.86 Penalty, Fraud
$16,669.94 Penalty, Finality
Considered by the Board: March 7, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by the Appeals Section.

Shmuel Krampf & Rauven Aviv, SR BH 99-864638; 89002420940
7-1-92 to 6-30-95, $61,849.56 Tax, $00.00 Penalty
Considered by the Board: December 14, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals Section.

Tekadi Corporation, SR EA 99-757112; 50064
1-1-96 to 12-31-98, $12,985.91 Tax, $00.00 Penalty
Considered by the Board: May 10, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Mr. Andal moved to grant the petition. Mr. Klehs seconded the motion but the motion failed to carry, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs and Ms. Mandel voting no, Mr. Chiang not participating.

Mr. Klehs moved that the petition be redetermined as recommended by  Appeals Section. Ms. Mandel seconded the motion but the motion failed to carry, Mr. Klehs and Ms. Mandel voting yes, Mr. Parrish and Mr. Andal voting no, Mr. Chiang not participating.

Mr. Chiang stated for the record that he was not present during the discussion of the petition and therefore would not vote. He requested the transcript of the hearing in order for him to make a decision regarding this petition.

Learaf, Inc., SR BH 19-720223; 89000273570
7-1-92 to 6-30-95, $61,849.56 Tax, $6,262.53 Penalty, Negligence
Considered by the Board: October 3, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered to deny the petition for rehearing.

Cordax, Inc., SR EA 99-159240; 89002127090
1-1-93 to 12-31-95, $12,344.99 Tax
Considered by the Board: October 3, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered to deny the petition for rehearing.

FRANCHISE AND INCOME TAX MATTERS, ADJUDICATORY

Reitman Atlantic Corporation, 56334
1993, $80,536.14 Assessment, $20,134.03 Penalty, Delinquent
$20,134.00 Penalty, Demand
Submitted for Decision: November 29, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel not participating, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Robert K. Bailey, 61142
1996, $1,162.00 Assessment
Submitted for Decision: October 12, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the modified action of the Franchise Tax Board.

Glenn & Joya Baker, 61143
1997, $8,229.25 Claim for Refund
Submitted for Decision: September 19, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Jeana Bevan, 59710
1998, $621.00 Assessment
Submitted for Decision: October 18, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

CDA Cable, Inc., 27319
1985, $73,031.00 Assessment
1988, $43,369.00 Assessment
1989, $ 737.00 Assessment
1990, $30,141.00 Assessment, $16,692.00 Claim for Refund
1991, $23,267.00 Assessment, $23,509.00 Claim for Refund
1992, $18,099.00 Assessment, $15,293.00 Claim for Refund
1993, $12,191.63 Assessment, $13,891.00 Claim for Refund
Submitted for Decision: April 18, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision modifying the action of the Franchise Tax Board.

Marvin & Barbara Davis, 89002467060
1989, $405,043.00 Assessment
1990, $456,745.00 Assessment
Submitted for Decision: March 7, 2001
Contribution Disclosures pursuant to Government Code Section 15626: A disqualifying contribution to Mr. Klehs was disclosed. No other disqualifying contributions were disclosed.

Action: Upon motion of Mr. Parrish, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs and Mr. Andal not participating, the Board adopted a decision reversing the action of the Franchise Tax Board.

April K. Dean, 48858
1997, $956.82 Claim for Refund
Submitted for Decision: June 2, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Ms. Mandel and duly carried, Mr. Chiang, Mr. Klehs and Ms. Mandel voting yes, Mr. Parrish and Mr. Andal voting no, the Board adopted a decision modifying the action of the Franchise Tax Board.

R. B. Dixon, 62411
1995, $1.00 or more Claim for Refund
Submitted for Decision: October 3, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Rafael Guillen, 62133
1997, $2,775.28 Claim for Refund
Submitted for Decision: October 3, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision modifying the action of the Franchise Tax Board.

Manuel & Fe Juliano, 87458
1996, $1,525.00 Assessment
Submitted for Decision: January 17, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the action of the Franchise Tax Board.

McKittrick Ranch, Inc., 98A-0954; 89002464250
1986, $192,880.00 Assessment
Submitted for Decision: April 18, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the modified action of the Franchise Tax Board.

Sandra M. Morgan, 56350
1997, $1,158.00 Assessment
Submitted for Decision: September 5, 2000
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Ms. Mandel, seconded by Mr. Chiang and duly carried, Mr. Parrish, Mr. Chiang, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs voting no, the Board adopted a decision sustaining the action of the Franchise Tax Board.

Ronald C. & Melinda L. Young, 37458
1988, $ 9,373.00 Assessment, $ 2,343.25 Penalty, Late Filing
1989, $42,093.00 Assessment, $10,523.25 Penalty, Late Filing
1990, $10,315.00 Assessment, $ 2,578.75 Penalty, Late Filing
Submitted for Decision: January 3, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: The Board deferred consideration of this matter.

Larin V. & Joan M. Schwab, 41858
1996, $404.00 Assessment
Submitted for Decision: January 4, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Mandel, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Chiang, Mr. Andal and Ms. Mandel voting yes, Mr. Klehs voting no, the Board adopted a decision denying the petition for rehearing.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, ADJUDICATORY

Lisa Saxton, 76065
1998, $1,729.18 Claim for Credit
Submitted for Decision: March 1, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision sustaining the modified action of the Franchise Tax Board.

G. Smith, 51717
1999, $240.00 Claim for Credit
Submitted for Decision: December 5, 2001
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board adopted a decision reversing the action of the Franchise Tax Board.

SALES AND USE TAX MATTERS, ADJUDICATORY

L. A. Gear California, Inc., SR AS 011-716253; 89000019940
10-1-89 to 12-31-93, $300,000.00 Claim for Refund
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the denial of claim for refund as recommended by staff.

8626 Balboa Corporation, SR AC 013-607329; 77458
4-1-93 to 3-31-96, $52,191.95 Claim for Refund
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board approved the denial of claim for refund as recommended by staff.

LEGAL APPEALS MATTERS, CONSENT

The Board deferred the following matters: Novartis Corporation, SZ OH 30-607079; 89000808320, -290, Damirus Corporation, SC OHB 97-563736; 52049, Pacific Foto Supply Company, SR OH 99-544773, 55777, Blue Shaw, Inc., SR AC 13-829801; 89000085530, and Datatape Incorporated, SR AP 17-714674; 89000204590.

With respect to the Legal Appeals Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Salvador Dela-Rosa Huerta, SR BH 19-677690; 18613
4-1-94 to 6-30-98, $199,416.40 Tax, $49,854.21 Penalty, Fraud
Action: Redetermine as recommended by Appeals Section.
Novartis Corporation, SZ OH 30-607079; 89000808320, -290
4-1-92 to 12-31-96, $353,904.24 Tax, $00.00 Penalty
Action: The Board took no action.
Damirus Corporation, SC OHB 97-563736; 52049
10-1-94 to 9-30-97, $11,440.63 Tax, $1,144.08 Penalty, Failure to File

Action: The Board deferred consideration of this matter.

Kyun & Eunjoo Kang, SR GH 99-242382; 89002163820
7-1-94 to 6-30-97, $12,929.39 Tax, $00.00 Penalty
Action: Redetermine as recommended by Appeals Section.
Pacific Foto Supply Company, SR OH 99-544773, 55777
7-1-95 to 9-30-98, $19,319.85 Tax, $587.13 Penalty, Failure to File

Action: The Board deferred consideration of this matter.

A & F Properties, Inc., SR AS 12-676694; 89000044440
7-1-88 to 12-31-92, $4,204.58 Tax, $433.15 Penalty, Negligence
Action: Redetermine as recommended by Appeals Section.
Simic Galleries, Inc., SY FH 15-740227; 89000155350
7-1-92 to 9-30-95, $00.00 Tax, $00.00 Penalty, Negligence

Action: Redetermine as recommended by Appeals Section.

Lands End, SR AS 18-653022; 89000232840
4-1-94 to 6-30-97, $00.00 Tax, $00.00 Penalty, Negligence

Action: Redetermine as recommended by Appeals Section.

Cincom Systems, Inc., SR OHA 30-629095; 89000817640
7-1-95 to 6-30-98, $120,656.90 Tax, $00.00 Penalty, Negligence

Action: Redetermine as recommended by Appeals Section.

Bisco Industries, Inc., SR EA 30-635718; 89000821460
7-1-94 to 9-30-97, $00.00 Tax, $00.00 Penalty, Negligence

Action: Redetermine as recommended by Appeals Section.

Stream International, Inc., SS OHB 30-665645; 89000842950
10-1-92 to 9-30-95, $00.00 Tax, $00.00 Penalty

Action: Redetermine as recommended by Appeals Section.

Frank & Marilyn Tallerico, SB UT 84-001982; 27483
12-31-95, $00.00 Tax, $00.00 Penalty

Action: Grant the petition as recommended by Appeals Section.

David C. Dunn, SR CH 99-826206; 890002407130
4-1-91 to 12-31-95, $00.00 Tax, $00.00 Penalty, Failure to File

Action: Redetermine as recommended by Appeals Section.

Eva W. Del Conte, SY JH 53-000120; 89000969800
6-1-90 to 12-31-91, $00.00 Tax, $00.00 Penalty

Action: Grant the petition as recommended by Appeals Section.

Creative Intelligence, Inc., SR AS 11-808821; 89000034350
7-1-93 to 3-31-96, $00.00 Tax, $00.00 Penalty

Action: Deny the petition for rehearing.

Blue Shaw, Inc., SR AC 13-829801; 89000085530
4-1-93 to 3-31-96, $22,958.45 Tax, $2,295.87 Penalty, Negligence

Action: The Board deferred consideration of this matter.

Datatape Incorporated, SR AP 17-714674; 89000204590
10-1-97 to 12-31-97, $227,392.00 Tax

Action: The Board deferred consideration of this matter.

Acute Care Alternative, SR AA 99-302874; 89002190930
10-1-93 to 12-31-96, $10,403.91 Tax

Action: Grant the petition for rehearing.

FRANCHISE AND INCOME TAX MATTERS, CONSENT

The Board deferred consideration of these matters: Samuel Flores, 89002462360, Melinda Bowles, 90088, Yuan-Chieh Jen, 83327, Mark D. Perry, 62413, Mazen M. & Haifa Mardini, 98A-0730; 89002465510, Pentel of America, Ltd.,  99A-0014; 89002464880, and Yamaha Motor Corporation, 99A-0226; 89002467500.

With respect to the Franchise & Income Tax Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Samuel Flores, 89002462360
1996, $2,960.00 Claim for Refund

Action: The Board deferred consideration of this matter.

Michael E. Myers, 41782
1997, $649.00 Assessment, $162.25 Penalty, Delinquent
$ 71.00, Cost Recovery Fee

Action: Sustain the action of the Franchise Tax Board and impose a $1,000.00 frivolous appeal penalty.

Richard James Amata, 79208
1991, $218.19 Assessment

Action: Sustain the action of the Franchise Tax Board.

Melinda Bowles, 90088
1988, $4,503.04 Assessment

Action: The Board deferred consideration of this matter.

J. Dean & Thelma F. Charley, 90734
1999, $54.85 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Nettie P. Collins, 80317
1996, $782.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Murari L. Gupta, Assumer for National Radiation, Inc., 77952
1992, $5,250.02 Assessment, $1,050.00 Penalty, Accuracy-related

Action: Sustain the action of the Franchise Tax Board.

Thomas C. Hanscome, 80244
1996, $1,548.75 Assessment

Action: Sustain the action of the Franchise Tax Board.

Jeffery Hill, 87451
1998, $1,229.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Paul Hoffman, 89976
1999, $711.11 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Yuan-Chieh Jen, 83327
1997, $1,332.00 Assessment, $333.00 Penalty, Failure to File
$333.00 Penalty, Demand

Action: The Board deferred consideration of this matter.

Deborah Leonard, 87211
1994, $3,670.48 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Oak Investments, LLC, 87090
1997, $1.00 Claim for Refund
Elm Enterprises, LLC, 87444
1997, $1.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

PSV Investments Inc., 82153
1993, $1,180.00 Claim for Refund
1994, $1,125.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Mark D. Perry, 62413
1996, $7,233.00 Claim for Refund – Tax
$1,808.25 Claim for Refund – Penalty, Demand
$1,446.60 Claim for Refund – Penalty, Accuracy-related
1997, $ 140.11 Claim for Refund - Tax

Action: The Board deferred consideration of this matter.

Patrick F. & Arlene Sheehy, 82070
1991, $10,269.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Michael J. Straw, 92229
1996, $272.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Valerie (Gevas) Thompson, 78059
1990, $57.76 Assessment, $11.55 Penalty, Accuracy-related

Action: Reverse the action of the Franchise Tax Board.

Anil Velasquez & Minda Wilson, 59211
1997, $3,772.25 Penalty, Demand
$ 86.34 Penalty, Estimated Tax

Action: Sustain the action of the Franchise Tax Board.

Preston F. & Diane J. Wood, 76207
1990, $28,708.50 Claim for Refund
1991, $17,481.11 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Edison International, 53591
1988, $4,216,830.00 Assessment
1989, $4,398,330.00 Assessment
1990, $7,434,827.00 Assessment

Action: Deny the petition for rehearing.

Deyanira Garcia-Menocal, 62131
1998, $614.00 Assessment

Action: Deny the petition for rehearing.

Eugen D. Georgescu, 32616
1987, $3,335.11 Claim for Refund

Action: Deny the petition for rehearing.

M. L. Grant, 42797
1997, $1,975.00 Assessment, $493.75 Penalty, Demand
$493.75 Penalty, Delinquent

Action: Deny the petition for rehearing.

William H. & Judith T. Lively, 58925
1985, $ 5,781.00 Assessment, $7,061.51 Penalty
1986, $ 5,397.00 Assessment, $5,936.95 Penalty
1987, $ 7,399.00 Assessment, $7,295.79 Penalty
1988, $ 7,652.00 Assessment, $2,295.60 Penalty
1989, $ 8,465.00 Assessment, $2,538.50 Penalty
1990, $ 9,309.00 Assessment, $4,189.05 Penalty
1991, $10,761.00 Assessment, $4,842.45 Penalty
1992, $ 5,998.00 Assessment, $2,699.10 Penalty
1993, $ 2,998.00 Assessment, $ 599.60 Penalty

Action: Deny the petition for rehearing.

Mazen M. & Haifa Mardini, 98A-0730; 89002465510
1991, $15,157.00 Assessment, $6,275.65 Penalty, Accuracy-related
1992, $26,873.00 Assessment, $5,374.60 Penalty, Accuracy-related
1993, $17,569.00 Assessment, $3,513.80 Penalty, Accuracy-related
1994, $ 9,914.00 Assessment, $1,982.80 Penalty, Accuracy-related

Action: The Board deferred consideration of this matter.

Robert G. Padrick, 52431
1993, $3,221.66 Claim for Refund
1995, $2,089.60 Claim for Refund

Action: Deny the petition for rehearing.

Pentel of America, Ltd., 99A-0014; 89002464880
1989, $177,126.00 Assessment

Action: The Board deferred consideration of this matter.

Michael J. Saliba, 41839
1997, $4,757.00 Assessment, $1,189.25 Penalty, Delinquent
$1,189.25 Penalty, Demand

Action: Deny the petition for rehearing.

Michael D. Streeter, 41863
1997, $4,051.00 Assessment, $1,012.75 Penalty, Delinquent
$1,376.25 Penalty, Demand

Action: Deny the petition for rehearing.

Yamaha Motor Corporation, 99A-0226; 89002467500
1989, $ 3,593.00 Assessment
1990, $229,623.00 Assessment
1991, $ 9,038.00 Assessment

Action: The Board deferred consideration of this matter.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, CONSENT

With respect to the Homeowner and Renter Property Tax Assistance Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Jeremiah Xavier Spicer, 92252
2000, $600.00 Claim for Credit
Miracle Dionna Spicer, 92253
2000, $600.00 Claim for Credit
Darryl Williams, Jr., 92254
2000, $600.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Cyesha Bell, 97897
2000, $1.00 or more Claim for Credit
Action: Sustain the action of the Franchise Tax Board.

Porcha D. Brown, 93537
2000, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

S. I. Omar, 94037
2000, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Karen N. Rowell, 98671
2000, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

James Ray Steward, 99730
2000, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Chinying Fan, 60034
1997, $1.00 or more Claim for Credit

Action: Deny the petition for rehearing.

SALES AND USE TAX MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, CONSENT

The Board deferred consideration of the following matters: Toyota Central Ltd., SR AA 011-635070; 112615, and Mediamark Research, Inc., SC OHB 099-158041; 36471.

With respect to the Sales and Use Tax Matters, Credits, Cancellations and Refunds, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

GSB Aviation (Two) LLC, SP H UT 084-010247; 114873
2-1-99, $466,614.60

Action: Approve credit and cancellation as recommended by staff.

Cal Del (49415) Inc., SP H UT 084-010256; 105506
5-5-99, $1,548,662.50

Action: Approve credit and cancellation as recommended by staff.

Skyview Unlimited LC, SP I UT 084-018866; 114987
2-12-97, $137,263.56

Action: Approve credit and cancellation as recommended by staff.

Socal Aviation LLC, SP H UT 084-019694; 113314
2-14-00, $65,181.30

Action: Approve credit and cancellation as recommended by staff.

So Cal Tractor Sales Inc., SR AC 099-292001; 113102
10-1-99 to 12-31-00, $52,573.68

Action: Approve credit and cancellation as recommended by staff.

Lithographix Inc., SR Y AA 011-256988; 84447
1-1-98 to 3-31-98, $57,350.58

Action: Approve refund as recommended by staff.

Toyota Central Ltd., SR AA 011-635070; 112615
7-1-97 to 9-30-00, $71,232.36

Action: The Board deferred consideration of this matter.

Technicolor Videocassette Inc., SR AR 011-731853; 97546
7-1-00 to 9-30-00, $633,875.39

Action: Approve refund as recommended by staff.

Universal City Studios Inc., SR AC 013-605431; 113077
1-1-92 to 12-31-95, $763,435.58

Action: Approve refund as recommended by staff.

Viskase Sales Corporation, SR OHA 014-716094; 37765
7-1-96 to 9-30-99, $236,527.96

Action: Approve refund as recommended by staff.

Color Service Inc., SR AP 017-637574; 47203
10-1-96 to 12-31-99, $102,631.30

Action: Approve refund as recommended by staff.

BAE Systems Aircraft Controls Inc., SR Y AS 018-735659; 112430
4-1-96 to 3-31-99, $212,717.37

Action: Approve refund as recommended by staff.

Catherine Leavy, SR AS 018-742890; 28981
4-1-96 to 3-31-00, $126,375.47

Action: Approve refund as recommended by staff.

City-County of San Francisco, SU S BH 019-300003, 111707
10-1-99 to 3-31-00, $51,354.14

Action: Approve refund as recommended by staff.

COMP USA Inc., SR Z OHC 024-899025; 17115
7-1-92 to 3-31-96, $237,599.28

Action: Approve refund as recommended by staff.

Studiocast Designs Inc., SR S EAA 024-929663; 113444
10-1-97 to 9-30-00, $416,473.56

Action: Approve refund as recommended by staff.

AAI/ACL Technologies, Inc., SR EA 024-957238; 112429
10-1-99 to 12-31-99, $75,546.62

Action: Approve refund as recommended by staff.

Maxwell Technologies, Inc. SR X FH 025-603940; 75830
5-1-99 to 7-31-99, $54,824.67

Action: Approve refund as recommended by staff.

Southwest Marine Inc., SR Y FH 025-680914; 89000526200
1-1-91 to 12-31-94, $1,174,119.61

Action: Approve refund as recommended by staff.

Sandman Inc., SR GH 026-714677; 97574
1-1-00 to 3-31-00, $56,007.77

Action: Approve refund as recommended by staff.

GSS Array Technology, Inc., SR GH 026-811192; 112431
4-1-97 to 12-31-99, $52,456.45

Action: Approve refund as recommended by staff.

MHI Corrugating Machinery Company, SR S OHB 030-663890; 97548
1-1-99 to 6-30-99, $81,468.03

Action: Approve refund as recommended by staff.

Software Spectrum Inc., SC OHC 030-678067; 97573
10-1-99 to 12-31-99, $209,008.41

Action: Approve refund as recommended by staff.

San Francisco International Airport Hometel, LP, SR BHA 030-700227; 114609
4-1-94 to 11-8-95, $65,098.55

Action: Approve refund as recommended by staff.

San Francisco International Airport Hometel, LP, SR BHA 030-700227; 114610
11-1-86 to 1-24-91, $213,145.60

Action: Approve refund as recommended by staff.

Roth Capital Partners, Inc., SR EAA 052-011279; 113758
10-1-97 to 12-31-00, $54,818.89

Action: Approve refund as recommended by staff.

Graphics 2000 LLC, SR EA 097-474565; 61222
12-22-98 to 3-31-00, $133,881.15

Action: Approve refund as recommended by staff.

Mediamark Research, Inc., SC OHB 099-158041; 36471
1-1-98 to 9-30-99, $87,574.04

Action: The Board deferred consideration of this matter.

Sun Microsystems Inc., SR Y GH 099-594260; 110526
10-1-00 to 12-31-00, $54,290.22

Action: Approve refund as recommended by staff.

Red Lion Hotels Inc., SR S OH 099-754923; 47101
10-1-96 to 6-30-97, $94,315.82

Action: Approve refund as recommended by staff.

Treev Inc., SR S OHB 099-838951; 105593
10-1-00 to 12-31-00, $72,696.40

Action: Approve refund as recommended by staff.

Bird Design, Inc., SR AS 099-895014; 16887
4-1-96 to 9-30-99, $137,504.97

Action: Approve refund as recommended by staff.

Consolidated Factors, Inc., SR GHC 099-949809; 89002445160
1-1-97 to 3-31-99, $53,857.65

Action: Approve refund as recommended by staff.

SALES AND USE TAX MATTERS, REDETERMINATIONS, RELIEF OF PENALTY AND DENIALS OF RELIEF OF PENALTY, CONSENT

The Board deferred consideration of the following matters: Proven Designs Inc., SC OHB 097-668417; 63102 and Electronics Boutique America, Inc., SR Z OHB 097-258710; 114553.

With respect to the Sales and Use Tax Matters, Redeterminations, Relief of Penalty and Denials of Relief of Penalty, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Super Sports Inc., SR AB 012-724111; 89000051540
1-1-95 to 12-31-97, $294,980.05

Action: Redetermine as recommended by staff.

Great Western Publishing Inc., SR OH 030-694937; 89000877810
10-1-94 to 3-31-95, $189,769.74

Action: Redetermine as recommended by staff.

Kasower Family Trust, SB G UT 084-009752; 112564
1-2-99, $181,500.00

Action: Redetermine as recommended by staff.

Model Transportation LLC, SP H UT 084-010749; 107055
4-20-99, $247,500.00

Action: Redetermine as recommended by staff.

Jet East Transportation LLC, SP I UT 084-014345; 98179
12-28-98, $57,893.78

Action: Redetermine as recommended by staff.

Premier Aviation LLC, SP H UT 084-021288; 112575
3-17-00, $200,750.00

Action: Redetermine as recommended by staff.

Proven Designs Inc., SC OHB 097-668417; 63102
1-1-92 to 6-30-97, $64,690.98

Action: The Board deferred consideration of this matter.

Davis-Standard Corporation, SC OHB 099-638514; 56557
1-1-96 to 12-31-98, $91,359.75

Action: Redetermine as recommended by staff.

American Drug Stores Inc., SR Z OH 030-668933; 113739
11-3-00, $480,000.00

Action: Grant the relief from penalty as recommended by staff.

Lucky Stores, Inc., SR Y OH 098-000418; 113902
11-3-00, $624,000.00

Action: Grant the relief form penalty as recommended by staff.

Electronics Boutique America, Inc., SR Z OHB 097-258710; 114553
10-1-99 to 12-31-99, $101,474.50

Action: The Board deferred consideration of this matter.

SPECIAL TAXES MATTERS, REFUNDS, CONSENT

With respect to the Special Taxes Matters, Refunds, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board made the following orders:

Mobil Oil Corporation, MD MT 007-000754; 89000005670
9-1-97 to 9-30-97, $223,492.50

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

Chevron U.S.A., Inc., MD MT 007-000809; 89000005710
8-1-97 to 8-30-97, $179,684.06

Action: Approve the refund as recommended by staff. Ms. Mandel not participating

Chevron U.S.A., Inc. IF MT 059-002173; 111626
4-1-97 to 9-30-00, $507,893.48

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

Frederick P. Furth, AWG Y ET 071-006580; 103680
1-1-97 to 12-31-99, $80,831.19

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

Straub Family Trust, ABW Y ET 071-008782; 109560
1-1-98 to 8-31-00, $98,435.86

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

Jetro Wholesale Beer Corporation, ADS ET 072-102943; 111624
1-1-99 to 12-31-00, $96,934.35

Action: Approve the refund as recommended by staff. Ms. Mandel not participating.

SPECIAL TAXES MATTERS, REDETERMINATION, CONSENT

With respect to the Special Taxes Matters, Redetermination, Consent Agenda, upon a single motion of Mr. Chiang, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board made the following orders:

Texaco Refining & Marketing Inc., OA MT 046-000001; 89000950630
9-24-90 to 6-30-95, $615,133.64

Action: Redetermine as recommended by staff.

Southern California Discount Tire Company, Inc., RB ET 045-040535; 99451
1-1-97 to 12-31-99, $77,842.71

Action: Redetermine as recommended by staff.

PROPERTY TAX MATTERS, NOT SUBJECT TO DISCLOSURE STATUTE

With respect to the Property Taxes Matters, Not Subject to Contribution Disclosure Statute Agenda (Exhibit 5.23), upon a single motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs and Mr. Andal voting yes, Ms. Mandel not participating in accordance with Government Code section 7.9, the Board made the following orders:

UNITARY AND NONUNITARY ESCAPED ASSESSMENTS

Pacific Bell (279)
1998-2000, $8,000.00

Action: Adopt unitary and nonunitary escaped assessments, plus applicable penalties and interest, as recommended by staff. Ms. Mandel not participating.

Cingular (formerly Pacific Bell Wireless) (2748)
1997-2000, $1,062,909.00
Late-filed Statements of Land Changes
1997-2000, $132,330,259.00

Action: Adopt unitary and nonunitary escaped assessment, plus applicable penalties and interest, as recommended by staff. Ms. Mandel not participating.

BUSINESS TAXES APPEALS HEARINGS

John Miller, SR GH 26-773061, 29079
7-1-95 to 3-31-99, $7,679.44 Tax, $00.00 Penalty
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
For Petitioner: Waived Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative
Issue: Whether the measure of disallowed sales for resale were established in accordance with the facts.

Action: Upon the motion of Mr. Andal, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by the Appeals Section.

Matthew Duane Kneeland, SR ARF 99-882836; 56097
5-15-96 to 12-31-98, $40,639.70
For Petitioner: Dean Slater, Representative
For Sales and Use Tax Department: Warren Astleford, Counsel
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue: Whether petitioner’s allegation that it was unable to collect sales tax reimbursement from Medi-Cal warrants relief from the tax.

Action: Mr. Andal moved to redetermine the petition. Mr. Parrish seconded the motion, but no vote was taken.

Upon motion of Mr. Chiang, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Henry F. Brooks, SR ARF 26-836824; 89000694120
7-1-95 to 6-30-98, $26,629.57 Tax
For Petitioner: Henry F. Brooks
Henry F. Brooks, II
For Sales and Use Tax Department: Jim Stillwell, Counsel
Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue: Whether petitioner is entitled to relief from liability under Revenue and Taxation Code section 6596 for erroneous oral advice petitioner allegedly received from a Board employee.

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision. The Board directing staff to bring the matter back to the next meeting.

PUBLIC COMMENT

Dennis Maciel, Chief, Excise Taxes Division, made introductory remarks regarding the Governor’s Budget May Revision – Limiting Cigarette Tax Stamps Discount (Exhibit 5.24).

Speakers:
Dennis Loper, Representative, CA Distributors Association
Catarina Wong, Director, Tax Compliance, Core-Mark International, Inc.

FINAL ACTION ON PETITIONS HEARD MAY 31, 2001

Mr. Klehs moved to redetermine, the petition of Matthew Duane Kneeland, SR ARF 99-882836; 56097. The motion was seconded by Ms. Mandel but failed to carry, Mr. Klehs and Ms. Mandel voting yes, Mr. Parrish and Mr. Chiang voting no, Mr. Andal absent.

Upon the motion of Mr. Parrish, seconded by Mr. Chiang and duly carried, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs voting no, Ms. Mandel not participating, Mr. Andal absent, the Board ordered the petition to be redetermined and directed the staff to assist petitioner with a letter to the Board of Control.

The Board adjourned at 12:00 p.m.

The foregoing minutes are adopted by the Board on August 1, 2001.