Approved Public Meeting Minute

The Board met at its offices at 450 N Street, Sacramento, at 9:30 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.

ANNOUNCEMENT OF CLOSED SESSION

The Board recessed at 9:30 a.m. and reconvened immediately in closed session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

CLOSED SESSION

The Board met to discuss Revenue and Taxation Code 7093.5 and 50156.11 settlements.

The Board recessed closed session at 9:35 and reconvened in open session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

RESOLUTION CONFERRING POWERS ON THE EXECUTIVE DIRECTOR

Upon motion of Mr. Parrish, seconded by Mr. Andal, and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the amendment to the Resolution Conferring Powers to the Executive Director adopted March 16, 2000 (Exhibit 5.1).

Exhibits to these Minutes are incorporated by reference.

MATTER OF BOARD OF CONTROL CLAIM FILED BY MR. FRANK J. CAUFIELD

Mr. Parrish presented a motion, consisting of three separate issues, in connection with a pending Board of Control claim filed by Mr. Frank J. Caufield, 91A-1031.

Upon motion of Mr. Parrish, seconded by Mr. Klehs, and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board directed that a letter be prepared to the Board of Control in support of Mr. Caufield and any similarly situated taxpayers.

Upon motion of Mr. Parrish, seconded by Mr. Andal, and duly carried, Mr. Parrish, Mr. Andal, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the moved to approve the remainder of the issues. (Exhibit 5.2)

EXECUTIVE DIRECTOR'S REPORT

Mrs. Newton reported that there was no Executive Directorís Report.

RETIREMENT RESOLUTIONS

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 adopted the following resolutions (Exhibit 5.3) extending its best wishes on their respective retirements and its appreciation for their service to the Board and the State of California:

  • Tommy F. Mar, Associate Tax Auditor, Van Nuys District Office
  • Joe H. Adams, Jr., Associate Tax Auditor, Van Nuys District Office
  • Kurt W. Kunert, Business Taxes Specialist I, Petitions Section
  • Jeanette M. Proctor, Supervising Tax Technician III,
  • Account Analysis and Control Section, Headquarters
  • Earl L. Smith, Associate Tax Auditor, Fresno Branch Office

BOARD MEETING MINUTES

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 approved the minutes of its meetings of March 15 and 16, 2000.

PROPOSED 2000-01 TOBACCO TAX RATE

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Klehs, Mr. Andal, Mr. Parrish, Mr. Chiang, and Ms. Mandel voting yes, the Board approved the proposed Tobacco Tax Rate for 2000-01 (Exhibit 5.4).

EXTENSION OF TIME GRANTED PURSUANT TO REVENUE AND TAXATION CODE SECTION 155

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Klehs, Mr. Andal, Mr. Parrish, Mr. Chiang, and Ms. Mandel voting yes, the Board approved the 30-day extension of time for Orange County to file Welfare Affidavits and Financial Statements. (Exhibit 5.5).

LEGISLATIVE COMMITTEE REPORT

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 approved the committee report. (Exhibit 5.6).

BUSINESS TAXES COMMITTEE REPORT

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 approved the committee report. (Exhibit 5.7).

CUSTOMER SERVICES & ADMINISTRATIVE EFFICIENCY COMMITTEE

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 adopted the committee report. (Exhibit 5.8).

PROPERTY TAX COMMITTEE REPORT

Mr. Richard Johnson, Deputy Director, Property Taxes Department, recommended to amend item three of the "Committee Action/Recommendation Direction" previously approved by the committee be amended.

Upon motion of Mr. Chiang, seconded by Ms. Mandel and duly carried, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Andal voting no, the Board approved item three to say: "Taxable government-owned properties are not subject to supplemental assessment."

Upon motion of Mr. Chiang, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the remainder of the Property Tax Committee report. (Exhibit 5.9).

CHIEF COUNSEL MATTERS - RULEMAKING

Upon motion of Mr. Chiang, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board adopted the changed version of Sales and Use Tax Regulation 5200, Annotations. A copy of the changed version is incorporated in these minutes by reference (Exhibit 5.10).

APPEALS MATTERS

Carbon Tech, Inc., SR KH 19-779323-010, Case ID: 89000292970

1-1-95 to 12-31-97, $387.50

Considered by the Board: March 16, 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 ordered that the petition be redetermined as recommended by Appeals.

Julianís Tortilleria, SR AB 24-826326-010, Case ID: 89000468780

10-1-89 to 9-30-92, $14,103.27

Considered by the Board: March 16, 2000

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

Action: Ms. Mandel motioned to grant the rehearing, seconded by Mr. Parrish but failed to carry, Mr. Parrish and Ms. Mandel voting yes, Mr. Andal, Mr. Klehs and Mr. Chiang voting no.

Upon motion of Mr. Chiang, seconded by Mr. Klehs and duly carried, Mr. Andal, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel voting no, Mr. Parrish passing then voting no, the Board ordered that the petition for rehearing be denied as recommended by Appeals.

Linda M. Nantelle, SR GH 26-801366-010, 020, 030,

Case IDís: 89000678810; 89000678820; 89000678830

4-1-94 to 5-31-97, $12, 383.92

Considered by the Board: March 16, 2000

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

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 petitions for rehearing be granted.

Barbara A. Wallace, LLC, SR DH 99-702975-010, Case ID: 89002365270

7-1-91 to 5-4-95, $61,783.26

Considered by the Board: March 16, 2000

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

Action: Upon motion of Mr. Chiang, seconded by Ms. Mandel, and duly carried, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Andal voting no, the Board ordered that the petition for rehearing be deferred to the next Sacramento Board meeting.

FRANCHISE AND INCOME TAXES MATTERS

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

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

Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang voting no, the Board adopted a decision in the appeal of Kimberly-Clark Corporation, 93R-0091, 93R-0898, 93A-1129; 89002463530, 89002463540, 89002463550, sustaining the staff recommendation.

Mr. Klehs moved to publish the decision, seconded by Ms. Mandel but failed to carry, Mr. Klehs and Ms. Mandel voting yes, Mr. Parrish, Mr. Andal and Mr. Chiang voting no.

The Board deferred consideration of Jane E. Harger, 98A-1370, 89002462870.

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 a decision in the appeal of Colin M. Parker, 98A-1362, 89002464780, sustaining the action of the Franchise Tax Board.

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 a decision in the appeal of John & Julie Tomlinson, 98A-1180, 89002466030, sustaining the action of the Franchise Tax Board and approving a frivolous appeal penalty of $500.

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 a decision in the appeal of John Tomlinson, 99A-0196, 89002465650, sustaining the action of the Franchise Tax Board and approving a frivolous appeal penalty of $1000.

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 a decision in the appeal of Samuel Yee, 99R-0146, 89002465260, sustaining the action of the Franchise Tax Board.

Mr. Klehs moved to sustain the action of the Franchise Tax Board in the appeals of The Pillsbury Company, 98A-1358, 89002464970 and Sara Lee Corporation, 97R-0948, 89002458860. The motion failed for lack of a second.

Mr. Andal moved to grant the appeals. The motion was seconded by Mr. Parrish but failed to carry, Mr. Parrish and Mr. Andal voting yes, Mr. Klehs, Mr. Chiang and Ms. Mandel voting no.

Upon motion of Klehs, seconded by Mr. Chiang, and duly carried, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish and Mr. Andal voting no, the Board sustained the action of the Franchise Tax Board.

An Opinion of Honorable Johan Klehs is incorporated into these minutes. (Exhibit 5.11)

APPEALS MATTERS

Upon motion of Klehs, seconded by Mr. Chiang 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 May 4, 2000, consisting of Hearing Notices Sent Ė No Response, Appearance Waived, Hearing Request Withdrawn, Hearing Request Withdrawn and Petitions for Rehearing. (Exhibit 5.12).

FRANCHISE AND INCOME TAXES MATTERS

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, except Mr. Chiang not participating on Paul M. & Myunghee Kim and Paul M. & Yong J. Kim, 98A-1045, 89002468190, the Board approved the staff recommendations with respect to Franchise and Income Tax Decisions and Petitions for Rehearing Schedule dated May 4, 2000. The Board deferred consideration of Ralph A. & Gail M. Jacobson, 99A-0039, 89002463300, Sharon L. Nazaroff, 99I-0171, 89002464550 and Carl R. and Sandra A. Kikerpill, 99R-0042, 89002468170 (Exhibit 5.13)

BUSINESS TAXES MATTERS

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, except Ms. Mandel not participating in accordance with Government Code Section 7.9 on Special Taxes Redeterminations and on Approvals of Distributor Status, the Board approved the staff recommendations with respect to Business Tax Matters Consent Schedule dated May 4, 2000 with respect to Redeterminations, Claims for Refund and Approvals of Distributor Status (Exhibit 5.14).

BUSINESS TAXES MATTERS

Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, except Ms. Mandel not participating in accordance with Government Code Section 7.9 on Core Mark International, Inc., CR ET 02-000789 and Mr. Chiang not participating on City of Long Beach, SR AB 16-058591, the Board approved the staff recommendations with respect to Business Tax Matters Consent Schedule dated May 4, 2000 with respect to Credits and Cancellations, Relief of Penalties and Refunds(Exhibit 5.15).

PROPERTY TAXES MATTERS

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang voting yes, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board approved an audit, Teltrust, Inc., (2425), the Private Railroad Car Refunds and a Private Railroad Car Penalty Cancellation schedule dated May 4, 2000.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs voting yes, Mr. Chiang not participating, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board approved an Audit, Sprint Communications Company, L.P. (2104).

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal and Mr. Klehs voting yes, Mr. Parrish not participating, Mr. Chiang abstaining and Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board approved the Unitary and Nonunitary Escaped Assessments schedule dated May 4, 2000 (Exhibit 5.16)

ANNOUNCEMENT OF CLOSED SESSION

The Board recessed at 10:15 a.m. and reconvened immediately into closed session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Mr. Chivaro present on behalf of Dr. Connell. The Board met to discuss potential litigation.

The Board reconvened at 10:30 a.m. in open session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

FRANCHISE AND INCOME TAXES HEARINGS

Aaron D. Levine, 98A-1100; 89002463860

1995, $1,115.00

For Appellant: Aaron D. Levine
Sharon Esker, Witness
For Franchise Tax Board: Kathleen Cooke, Tax Counsel

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

Issue: Whether appellant has shown that he qualifies to use head of household filing status for 1995. In the alternative, whether appellant qualifies for the joint custody head of household credit for 1995.

Appellantís Exhibit: A-1, Letter and Calendar (Exhibit 5.17)

Respondentís Exhibit: R-1, Law excerpt (Exhibit 5.18)

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 appeal be submitted for decision.

BUSINESS TAXES APPEALS HEARINGS

Lloyd Paul Phillips, SR KH 99-321611-010; 89002199370

7-1-94 to 12-31-97, $4,136.26

For Petitioner: L. Paul Phillips
For Sales and Use Tax Department: Warren Astleford, Counsel

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

Issue: Whether petitionerís reliance upon alleged erroneous oral advice from an employee of the Board warrants relief from the applicable tax and interest.

Whether petitioner has met his burden of establishing that certain items of equipment were held for demonstration or display for resale in the regular course of business.

Action: Upon motion of Mr. Chiang, 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 appeal be submitted for decision.

FRANCHISE AND INCOME TAXES HEARINGS

Paul B. and Mary A. Milhous, 99A-0186; 89002466650

1993, $227,246.00

Robert E. and Gail P. Milhous, 99A-0187; 89002466660

1993, $670,825.00

For Appellant: Roy E. Crawford, Counsel
For Franchise Tax Board: Richard Gould, Tax Counsel

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

Issue: Whether respondent erred in imposing a tax on appellantsí income from a covenant-not-to-compete (covenant income)

Whether appellants are entitled to net operating loss (NOL) deductions in computing their California adjusted gross income.

Appellantís Exhibit: A-1, Letter (Exhibit 5.19)

Action: Upon motion of Mr. Chiang, seconded by Mr. Andal, and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered the appeal be submitted for decision, allowing the appellant 30 days to provide additional documents, the Franchise Tax Board 30 days to respond and Staff 30 days to prepare a recommendation for the Boardís consideration.

The Board recessed at 11:50 a.m. and reconvened at 1:30 p.m. with Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang present.

Justin C. and Audrey M. Dygert, 32605

1994, $5,658.00

1995, $5,621.00

1996, $6,589.00

1997, $7,271.00

For Appellant: Justin C. Dygert
Audrey M. Dygert
For Franchise Tax Board: John Penfield, Tax Counsel

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

Issue: Whether distributions from an Individual Retirement Account (IRA), which IRA was funded by a rollover of a lump sum distribution from a qualified plan while appellants were nonresidents of California, are taxable by California when received by appellants after they became California residents.

Appellants Exhibits: A-1, Letter (Exhibit 5.20)

A-2, Chronology of events (Exhibit 5.21)

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish, and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Dr. Connell absent, the Board ordered that the appeal be submitted for decision.

R. Jeffery Todoroff, DVM, Inc., 99A-0364; 89002469790

9-18-96, $10,702.00

For Appellant: Dave DiMaggio, Attorney
R. Jeffery Todoroff
For Franchise Tax Board: Ann Hoover, Tax Counsel

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

Issue: Whether appellants have demonstrated that respondent incorrectly adjusted their net income to reflect unreported installment gain of $115,072

Appellantís Exhibit: A-1, Form 1040, 1065, 1120,

Partnership agreement (Exhibit 5.22)

Action: Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang voting yes, Dr. Connell absent, the Board ordered that the appeal be submitted for decision.

BUSINESS TAXES HEARINGS

Stephen L. Young and Clifford Jones, SR KH 28-705418-030; 89000748970

10-1-93 to 6-30-95, $10,651.82

For Petitioner: Clifford Jones
Stephen Young
For Sales and Use Tax Department: Sharon Jarvis, Counsel

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

Issue: Whether the evidence establishes that the disallowed claimed sales in interstate or foreign commerce are valid exempt sales.

Whether relief from the protested tax is warranted based on misinformation contained in a prior audit.

Whether four unreported sales totaling $15,516.00 should be deleted from the audited measure of tax on the basis that petitioner has diligently reported all of its other sales.

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Dr. Connell absent, the Board ordered that the petition be submitted for decision allowing the petitioners 30 days to obtain affidavits in support of the 17 transactions in dispute and Appeals 30 days to prepare a recommendation for the Boardís consideration.

Olympia Investments, Inc., SP UT 82-588361-010; 89001091550

8-31-97, $105,600.00

For Petitioner: Jim McKeehan, Attorney
For Sales and Use Tax Department: Sharon Jarvis, Counsel

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

Issue: Whether petitionerís use of the aircraft is not subject to the use tax pursuant to Title 18, California Code of Regulations (Regulation), Section 1620, subdivision (b)(3) or Revenue and Taxation Code section 6366 and 6366.1

Action: Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Andal, Mr. Chiang voting yes, Mr. Klehs not participating,

Dr. Connell absent, the Board ordered that the petition be submitted for decision.

Eliezer & Shoshana Benaroya, SR CH 21-832221-020; 89000340940

7-1-94 to 9-30-97, $11,836.85

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

FINAL ACTION ON APPEALS HEARD MAY 4, 2000

Upon motion of Mr. Klehs, seconded by Mr. Chaing and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang voting yes, Mr. Parrish voting no, and Dr. Connell absent, the Board ordered that the appeal of Aaron D. Levine, 98A-1100; 89002463860, be denied, sustaining the action of the Franchise Tax Board.

Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang voting yes, Dr. Connell absent, the Board ordered that the appeal of Justin C. and Audrey M. Dygert, 32605, be denied, sustaining the action of the Franchise Tax Board.

Upon motion of Mr. Andal, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang voting yes, Dr. Connell absent, the Board ordered that the appeal of R. Jeffery Todoroff, DVM, Inc. 99A-0364; 89002469790, be denied, sustaining the action of the Franchise Tax Board.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang voting yes, Dr. Connell absent, the Board ordered that the petition of Lloyd Paul Phillips, SR KH 99-321611-010; 89002199370, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang voting yes, Mr. Klehs not participating, Dr. Connell absent, the Board ordered that the petition of Olympia Investments, Inc., SP UT 82-588361-010; 89001091550, be deferred and directed staff to amend Regulation 1620 to provide that the mileage rules applicable to buses and trucks used in interstate commerce should also be applied to aircraft and bring this amendment before the Board at the next Sacramento Board meeting.

The Board adjourned at 3:00 p.m.

The foregoing minutes are adopted by the Board on July 26, 2000.