Approved Minutes June 27, 2000

The Board met at its offices at 5901 Green Valley Circle, Culver City, at 9:00 a.m. with Chairman Andal, Vice Chairman Parrish, Mr. Klehs and Mr. Chiang present, and Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

BUSINESS TAXES HEARINGS

Rafael Penilla, SR AA 11-711802-010; 89000019370, 32078
4-1-94 to 3-31-97, $11,296.13

For Petitioner: Rafael Penilla, Owner
Rafael Penilla, Jr.
For Franchise Tax Board: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence establishes that insufficient allowance has been made for theft and burglaries.

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

Color Corrections, Inc., SR AS 11-718391-010; 89000020100
7-1-94 to 6-30-97, $76,287.52

For Petitioner: Suzanne Beaudelaire, Senior Manager
For Sales and Use Tax Department: Janice Thurston, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether petitioner should be assessed tax on cost rather than rental receipts on property purchased ex-tax and not reported at cost due to clerical errors.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be granted on the basis of cost.

Ronald and Rhonda Adelman, SX AS 11-690728-010; 89000017740

10-1-93 to 6-30-96, $8,586.12

For Petitioner: Ronald Adelman
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence shows that the disallowed exempt food sales are excessive.

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

Nouveau Collections, Inc., SR AS 11-813131-010; 89000035300

7-1-92 to 5-24-95, $55,990.19

For Petitioner: Alexander B. Hull, Secretary/President
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

For Petitioner: Alexander B. Hull, Secretary/President

Raymond Hahl, Shareholder

For Sales and Use Tax Department: Jeffrey Graybill, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioner is entitled to relief from the tax and/or interest pursuant to Revenue and Taxation Code section 6596 due to oral misinformation from a Board employee.

Whether the evidence shows that certain transactions are nontaxable sales for resale.

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be referred back to the Appeals Section for further review and directed that the Appeals Section provide a recommendation in 30 days.

Jin Ho Kwak and Hei Young Kwak, SR AS 12-637602-010; 89000041570

7-1-93 to 6-30-96, $2,370.00

For Petitioner: Peter Kwok, Representative

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the understated taxable sales were established in accordance with the facts.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board ordered that the taxable measure of tax be reduced by 25 percent.

The Board recessed at 10:25 a.m. and reconvened at 10:35 a.m. with Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

BUSINESS TAXES HEARINGS

Razmik Vartan, SX AB 12-742540-010; 89000055810

4-1-94 to 6-30-97, $9817.83

For Petitioner: No Appearance

For Sales and Use Tax Department: Janice Thurston, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: The Board took no action.

Mr. Parrish entered the Boardroom.

Jack Jacob Pinsker, SX AC 13-787749-010; 89000077740

10-1-90 to 3-31-96, $123,342.67

For Petitioner: S. Zachary Samuels, Attorney

Jack Jacob Pinsker, Owner

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the evidence shows that taxable sales were computed in accordance with the facts.

Whether relief from the 25% penalty for fraud is warranted. Action: Mr. Parrish moved that the fraud penalty be reduced to a negligence penalty and that the remainder of the petition be submitted for decision. The motion failed for lack of a second.

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

Mr. Andal left the Boardroom.

Hector Salinas and Jaime Salinas, SR AP 17-802810-010; 89000221000

Hector Salinas, SN AP 52-005472-010; 89000965400

10-1-93 to 12-31-94, $8,467.40

1-1-95 to 12-31-96, $9,297.81

For Petitioner: Hector Salinas

Osvaldo Casio, Bookkeeper

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the evidence shows that the gross receipts reported on petitioners' income tax returns include revenues from non-sales sources, i.e., loans and other nontaxable income.

Whether the evidence shows that the disallowed claimed exempt food sales are valid sales for resale of hot and cold meat products to catering truck operators.

During hearing of this petition, Mr. Andal entered the Boardroom and Mr. Klehs left.

Action: Upon motion of Ms. Mandel, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs absent, the Board ordered that the audited taxable sales for the fourth quarter 1993 be reduced to $10,000 and otherwise redetermined.

Bahram Javaherian, SR AC 13-822583-010; 89000083730

Fahrad Delrahim, AKA Fahrad Arya, SR AC 53-000179-010; 89000969989

4-1-94 to 2-27-97, $43,708.92

For Petitioner: No Appearance

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: The Board took no action.

Globe Auto Sales, Inc., SR AC 13-799210-010; 89000079450

4-1-94 to 9-30-97, $342,327.04

For Petitioner: Aharon Kalma, C.E.O.

David Bruce, Tax Accountant

For Sales and Use Tax Department: Mark Woolston, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence shows that the audited taxable sales and disallowed sales in interstate commerce are excessive.

During hearing of this petition, Mr. Klehs entered the Boardroom.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision, granting the Appeals Section 30 days to review additional documentation.

FINAL ACTION ON PETITIONS HEARD JUNE 27, 2000

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of Ronald and Rhonda Adelman, SX AS 11-690728-010; 89000017740, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of Rafael Penilla, SR AA 11-711802-010; 89000019370, 32078, be redetermined as recommended by the Appeals Section.

BUSINESS TAXES HEARINGS

McTaggart Wolk, Inc., SN AS 97-525421-010, -020; 29743, 29748

4-1-88 to 9-30-88, $5,354.97

For Petitioner: Appearance Waived

For Sales and Use Tax Department: Jeffrey Graybill, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether sales of Hotel Bel-Air magazines to petitioner qualify as exempt sales of printed sales messages.

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

FINAL ACTION ON PETITIONS HEARD JUNE 27, 2000

Mr. Parrish moved that the fraud penalty be reduced to a negligence penalty for the petition of Jack Jacob Pinsker, SX AC 13-787749-010; 89000077740. The motion was seconded by Mr. Andal but failed to carry, Mr. Andal and Mr. Parrish voting yes, Mr. Klehs, Mr. Chiang and Ms. Mandel voting no.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by the Appeals Section and directed that a letter be sent on behalf of the Board to the auditors commending their work.

Mr. Klehs stated for the record that he would vote with the majority on Hector Salinas & Jaime Salinas, SR AP 17-802810-010, 89000221000 and Hector Salinas, SN AP 52-005472-010, 89000965400.

APPEALS MATTERS

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the Legal Appeals Matters Consent Schedule dated June 27, 2000, consisting of Hearing Notices Sent - No Response, Hearing Notices Sent - Appearance Waived, Hearing Notices Sent - Hearing Request Withdrawn, Hearing Requests Withdrawn and Petitions for Rehearing. (Exhibit 6.17). The staff withdrew A & G, Inc., SY EA 24-959307-010, 89000502760, Esteban Amilcar Orellana, SR ARH 99-265875-001, 89002174410, 89002174420, and Bernacchi-Perry, Inc., SR EA 25-878136-010, 89000605670.

FRANCHISE AND INCOME TAXES MATTERS

Upon motion of Mr. Parrish, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the staff recommendations with respect to Franchise and Income Tax Decisions and Petitions for Rehearing Schedule dated June 27, 2000 (Exhibit 6.18). The Board withdrew Arthur H. & Suzanne G. Stolnitz, 98R-0078, 89002465890.

BUSINESS TAXES MATTERS

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the staff recommendations with respect to Business Tax Matters Consent Schedule dated June 27, 2000, consisting of Redeterminations (Exhibit 6.19).

BUSINESS TAXES MATTERS

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Chiang and Ms. Mandel not participating on Minimed, Inc., SY AC 099-244585, 61541, the Board approved the staff recommendations with respect to Business Tax Matters Consent Schedule dated June 27, 2000, consisting of Credits, Cancellations and Refunds (Exhibit 6.20).

SPECIAL TAXES MATTERS

Upon motion of Mr. Parrish, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes,

Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board approved the staff recommendation with respect to Special Tax Matters Consent Schedule dated June 27, 2000, consisting of a refund (Exhibit 6.21).

APPEALS MATTERS

Allied-Signal, Inc., SY OHB 30-680407-030; 89000858110

4-1-91 to 3-31-93, $255,773.02

Considered by the Board:June 15, 2000

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. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the revised Appeals Section recommendation.

The Board recessed at 11:55 a.m. and reconvened at 1:35 p.m. with Mr. Andal, Mr. Klehs and Mr. Chiang present.

BUSINESS TAXES HEARINGS

Uniden Properties, Inc., SR AC 13-850843-010; 89000090420

10-1-92 to 9-30-95, $14,880.28

For Petitioner: Steve Carter, Director of Operations

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence shows that all bar sales were recorded and reported.

Mr. Parrish and Ms. Mandel entered during the hearing of this matter.

Action: (Motion Expunged)

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

Herbert Quintanilla, SY AC 13-868802-010; 89000095100

1-1-92 to 3-31-95, $42,226.68

For Petitioner: Appearance Waived

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contribution forms were filed. The members were asked to check their listings for disqualifying contributions. None were disclosed.

Issues: Whether the understated measure of tax was established in accordance with the facts.

Whether the evidence establishes that the disallowed claimed exempt food deduction is excessive.

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

Metropolitan Culinary Svc., Inc., SR AC 13-888685-010; 89000100850

7-1-92 to 6-30-95, $47,050.75

For Petitioner: Appearance Waived

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether an allowance for exempt food sales from the restaurant and bars is warranted.

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

Ki Soo and Kyung Sook Pak, SR AA 14-735528-010; 89000121800

1-1-94 to 3-27-97, $31,494.13

For Petitioner: Ki Soo Pak, Owner

Gary J. Son, C.P.A.

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the evidence shows that the audited markups used to establish taxable sales are excessive.

Whether the evidence shows that the audited cost of sales of beer and wine is excessive.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the measure of tax be reduced by ten percent, offering the taxpayer a two year payment plan, including the amount in escrow towards payment as of the date the petitioner paid the escrow company.

Arthur Glenn Como, SR AB 14-763850-010; 89000127560

7-1-94 to 6-30-97, $11,319.82

For Petitioner: Arthur G. Como, President

For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioner has met his burden of establishing that the disallowed claimed nontaxable or exempt sales were actually sales for resale or were sales in interstate commerce.

Whether relief from the 10 percent penalty for negligence is warranted.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by the Appeals Section, not including Alico and Las Playas.

Mr. Parrish moved that the negligence penalty be deleted. The motion was seconded by Mr. Andal but failed to carry, Mr. Andal and Mr. Parrish voting yes, Mr. Klehs, Mr. Chiang and Ms. Mandel voting no.

The Board recessed from 2:30 p.m. to 2:40 p.m. and reconvened with Mr. Andal, Mr. Klehs, and Mr. Chiang present.

BUSINESS TAXES HEARINGS

Mr. Parrish entered the Boardroom at the beginning of the hearing.

Jennifer Smith, SR ARD 15-690565-020; 89000145680

7-1-85 to 4-21-89, $73,344.60

For Petitioner: Greg Abel, Attorney

Jennifer Smith

For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the evidence submitted proves that charges for servicing leased chemical toilets were optional, and therefore not subject to tax.

Whether petitioner received and relied on misinformation from a Board employee, warranting relief from the tax.

Whether documentation provided supports petitioner's claim that certain leases of chemical toilets to U.S. government subcontractors are nontaxable sales for resale.

Whether additional adjustments are warranted for leases to the U.S. government.

Whether leases to the State of California are exempt from tax.

Whether documentation submitted supports petitioner's claim that taxable measure includes non-taxable service for cleaning septic tanks.

Whether relief from the finality penalty is warranted.

During hearing of this petition, Ms. Mandel entered the Boardroom.

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

Chong Hing Goldsmith Corp., LTE., SY AA 11-742438-001; 89000022870

1-1-92 to 12-31-94, $197,960.90

For Petitioner: Ronald Lee, President

Bernard Oster, Attorney

Floyd McCutcheon, Accountant

For Sales and Use Tax Department: Mark Woolston, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether claimant has shown that the disallowed deductions for sales for resale, sales of bulk gold, sales in interstate/foreign commerce, and bad debts are excessive.

Whether relief from the negligence and finality penalties is warranted. Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Mr. Parrish offered a substitute motion that the petition be submitted for decision and that the negligence penalty be deleted. The motion was seconded by

Mr. Andal but failed to carry, Mr. Parrish and Mr. Chiang voting yes, Mr. Andal,

Mr. Klehs and Ms. Mandel voting no.

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

Container Industries, Inc., SR AC 17-610976-010; 89000193920

7-1-95 to 1-17-97, $20,585.25

For Petitioner: Bernard C. Grace, C.P.A.

For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether a portion of the sale of machinery and equipment occurred outside the State of California, and is therefore not subject to the tax.

Action: Mr. Klehs moved that the petition be submitted for decision. The motion failed for lack of a second.

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried,

Mr. Andal, Mr. Parrish and Ms. Mandel voting yes, Mr. Klehs and Mr. Chiang voting no, the Board ordered that the petition be granted.

Benjamin Nuno and Martin Fletes, SR AS 99-536066-010; 89002298290

7-1-94 to 6-30-97, $21,016.38

For Petitioner: Jonathan F. Gallardo, Accountant

For Sales and Use Tax Department: Richard Goodrich, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the evidence shows that the audited taxable purchase ratios are excessive.

Whether the evidence shows that the audited markup rate is excessive.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board reduced the audited percentage of tax to total purchases to 5.5 percent for the audit period.

Mustafa A. Hassan, SR AP 14-779937-010; 89000131170

5-1-95 to 6-30-95, $2,580.80

For Petitioner: No Appearance

For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether petitioner has presented sufficient evidence to establish that the claimed amount of prepaid sales tax paid to his vendor is correct.

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

FINAL ACTION ON PETITIONS HEARD JUNE 27, 2000

Mr. Klehs moved a ten percent reduction in the measure of tax for the petition of Uniden Properties, Inc., SR AC 13-850843-010; 89000090420. The motion was seconded by Mr. Parrish but was not voted on.

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the measure of tax be reduced by 27 percent.

Mr. Andal moved that the petition of Jennifer Smith, SR ARD 15-690565-020; 89000145680, be granted. The motion was seconded by Mr. Parrish but failed to carry, Mr. Andal and Mr. Parrish voting yes, Mr. Klehs, Mr. Chiang and Ms. Mandel voting no.

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel abstaining, the Board granted the petition with respect to Boeing, Bechtel and Murietta.

Upon motion of Mr. Parrish, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board submitted the remainder of the petition.

Upon motion of Mr. Klehs, seconded by Mr. Andal and duly carried,

Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Chong Hing Goldsmith Corp., LTE., SY AA 11-742438-001; 89000022870, be redetermined as recommended by the Appeals Section.

The Board adjourned at 3:50 p.m.

The foregoing minutes are adopted by the Board on September 14, 2000