1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 FEBRUARY 3, 2009 9 10 11 12 H6 Special Taxes Matters 13 Redeterminations 14 1. Alliant Insurance Services, Inc. 15 No. 387929 (ET) CF 16 H7 Special Taxes Matters 17 Credits, Cancellations, and Refunds 18 Refunds 19 1. Alliant Insurance Services, Inc. 20 No. 391200 (ET) CF 21 22 23 24 25 26 27 Reported by: Juli Price Jackson 28 No. CSR 5214 1 1 2 P R E S E N T 3 4 For the Board Betty T. Yee of Equalization: Chair 5 6 Judy Chu Vice-Chair 7 Bill Leonard 8 Member 9 Michelle Steel Member 10 Marcy Jo Mandel 11 Appearing for John Chiang, State Controller 12 (per Government Code Section 7.9) 13 Not Participating 14 Diane G. Olson 15 Chief, Board Proceedings Division 16 17 For the Staff: Randy Ferris Legal Department 18 Lynn Bartolo 19 Excise Taxes 20 21 22 23 ---oOo--- 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 FEBRUARY 3, 2009 4 ---oOo--- 5 MS. OLSON: Our next item is H6. Board 6 Proceedings has not received contribution disclosures 7 for the agent or participant. 8 MS. YEE: Okay. 9 MS. MANDEL: This is a constitutional function 10 item only. 11 MS. YEE: Okay, Ms. Mandel not participating, 12 H6, Alliant Insurance Services. 13 I have a question on this one. And it relates 14 to, I think, this petition relying on the enactment of 15 legislation, which didn't appear to be enacted to apply 16 retroactively. 17 So, I'm just trying to -- 18 MS. MANDEL: This -- this -- 19 MS. YEE: -- understand this. 20 MS. MANDEL: -- oh, oh, H6 and 7? 21 MS. YEE: H6 and 7. 22 MS. MANDEL: Yeah, yeah. 23 MS. YEE: Right. 24 MS. MANDEL: H6 and 7 are constitutional 25 functions. 26 MS. YEE: Yeah. And I wonder if the Department 27 can speak to that issue? 28 MR. LEONARD: Well, I can when they're done. 3 1 MS. YEE: What's that? 2 MR. LEONARD: I can when they're done. 3 MS. YEE: Okay. 4 MR. FERRIS: Yes, Randy Ferris for the Legal 5 Department, along with Lynn Bartolo from Excise. 6 In this particular case our own legislative 7 section wasn't involved in the -- the bill and its 8 process through the legislature. And, so -- but the 9 Department of Insurance was. And their legal staff was 10 involved with the author and with the whole process. 11 And because of their intimate relationship with 12 that process, we are relying upon their representations 13 to us about what the intent of the bill was as -- as 14 they understood it. 15 And they've told us that it does apply to the 16 facts of this case. 17 MS. YEE: Okay. Mr. Leonard. 18 MR. LEONARD: In addition to that, the -- the 19 analysis of Assemblywoman Carter's bill, as it proceeded 20 through the process, reflects that the problem is past 21 tense and the bill is to solve the problem. 22 So, while there's not specific language of 23 "notwithstanding" or "retroactive effect," the argument 24 for the bill and the analysis of the bill at every stage 25 was reflective of that. That it's -- it's intended to 26 solve a problem that had already taken place. 27 MS. YEE: Okay. And I appreciate the 28 clarification. 4 1 I did have a conversation with the author of 2 the bill and what was troubling was just her 3 representation that as the bill was moving through the 4 legislative process that there had been some discussion 5 about the retroactive application. 6 And it was -- the bill was intended to apply 7 prospectively, albeit, to really try to address the 8 situation that is raised in this petition. 9 And it seems to me that if they were trying to 10 enact a bill to solve this particular problem that they 11 would have been a little bit clearer about actually 12 doing so. 13 But it also sounded like the Legislative 14 Division of the Department of Insurance also made the 15 call about -- 16 MR. LEONARD: Yeah. 17 MS. YEE: -- the bill actually applying to this 18 petition. 19 Okay, all right. Other questions or comments 20 on this? 21 Okay. Hearing none, is there a motion? 22 MR. LEONARD: Move adoption. 23 MS. STEEL: Second. 24 MS. YEE: Second -- 25 MR. LEONARD: We can do H7 also if you wanted 26 to do both. 27 MS. YEE: Okay. You want to do both? Fine. 28 Motion by Mr. Leonard, second by Ms. Steel. 5 1 Please call the roll. 2 MS. OLSON: Ms. Yee? 3 MS. YEE: I'm going to abstain. 4 MS. OLSON: Mr. Leonard? 5 MR. LEONARD: Aye. 6 MS. OLSON: Ms. Steel? 7 MS. STEEL: Aye. 8 MS. OLSON: Dr. Chu? 9 DR. CHU: Aye. 10 MS. OLSON: Ms. -- excuse me, not 11 participating. Motion carries. 12 MS. YEE: All right. 13 ---o0o--- 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, JULI PRICE JACKSON, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 FEBRUARY 3, 2009 I recorded verbatim, in shorthand, to 10 the best of my ability, the proceedings in the 11 above-entitled hearing; that I transcribed the shorthand 12 writing into typewriting; and that the preceding pages 1 13 through 6 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: November 8, 2012 17 18 19 20 21 22 23 ____________________________ 24 JULI PRICE JACKSON 25 Hearing Reporter 26 27 28 7