BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT APRIL 15, 2009 FINAL ACTIONS Reported by: Beverly D. Toms No. CSR 1662 1 1 2 P R E S E N T 3 4 For the Board Betty Yee of Equalization: Chair 5 Judy Chu 6 Vice-Chair 7 Bill Leonard Member 8 Michelle Steel 9 Member 10 Marcy Jo Mandel Appearing for John 11 Chiang, State Controller (per Government Code 12 Section 7.9) 13 Diane Olson Chief, Board 14 Proceedings Division 15 16 ---oOo--- 17 18 19 20 21 22 23 24 25 26 27 28 2 1 ITEM B2 2 Sacramento, California 3 April 15, 2009 4 ---oOO--- 5 MS. OLSON: Our first item is B2, Nemat 6 Maleksalehi -- I'm sorry, and Maryam Maleksalehi. 7 MS. YEE: Okay. We have item B2 under 8 submission, Nemat Maleksalehi and Maryam Maleksalehi. 9 Is there a motion? 10 DR. CHU: I move to sustain the Franchise Tax 11 Board. 12 MS. YEE: Okay. Motion by Dr. Chu to sustain 13 the Franchise Tax Board. Is there a second? 14 MS. MANDEL: Second. 15 MS. YEE: Seconded by Ms. Mandel. 16 Please call the roll. 17 MS. OLSON: Madam Chair. 18 MS. YEE: Aye. 19 MS. OLSON: Mr. Leonard. 20 MR. LEONARD: No. 21 MS. OLSON: Ms. Steel 22 MS. STEEL: No. 23 MS. OLSON: Dr. Chu. 24 DR. CHU: Aye. 25 MS. OLSON: Ms. Mandel. 26 MS. MANDEL: Aye. 27 MS. OLSON: Motion carries. 28 MS. YEE: Okay. 3 1 ---oOo--- 2 ITEM B3 3 MS. OLSON: Our next item is David D. Houtz. 4 MS. YEE: Okay, next item B3, David E. Houtz. 5 Is there a motion? 6 DR. CHU: I move to sustain the Franchise Tax 7 Board. 8 MS. YEE: Okay. Motion by Dr. Chu to sustain 9 the Franchise Tax Board. 10 Is there a second? 11 MS. MANDEL: Second. 12 MS. YEE: Seconded by Ms. Mandel. 13 Please call the roll. 14 MS. OLSON: Madam Chair. 15 MS. YEE: Aye. 16 MS. OLSON: Mr. Leonard. 17 MR. LEONARD: No. 18 MS. OLSON: Ms. Steel. 19 MS. STEEL: No. 20 MS. OLSON: Dr. Chu. 21 DR. CHU: Aye. 22 MS. OLSON: Ms. Mandel. 23 MS. MANDEL: Aye. 24 MS. OLSON: Motion carries. 25 MS. YEE: That motion carries. Okay. 26 ---oOo--- 27 28 4 1 ITEM C1. 2 MS. OLSON: Next item is C1, Shahrokh Matin. 3 MS. YEE: Okay, item C1, Shahrokh Matin. 4 Is there a motion? 5 DR. CHU: I move to adopt the staff 6 recommendation. 7 MS. YEE: Okay. Motion by Dr. Chu to approve 8 the staff recommendation. Is there a second? 9 MS. MANDEL: Second. 10 MS. YEE: Seconded by Ms. Mandel. 11 Please call the roll. 12 MS. OLSON: Madam Chair. 13 MS. YEE: Aye. 14 MS. OLSON: Mr. Leonard. 15 MR. LEONARD: Aye. 16 MS. OLSON: Ms. Steel. 17 MS. STEEL: Aye. 18 MS. OLSON: Dr. Chu. 19 DR. CHU: Aye. 20 MS. OLSON: Ms. Mandel. 21 MS. MANDEL: Aye. 22 MS. OLSON: Motion carries. 23 MS. YEE: Okay. 24 ---oOo--- 25 26 27 28 5 1 ITEM C2. 2 MS. OLSON: Our next item is C2, Gurminder 3 Singh Pamar. 4 MS. YEE: Okay, item C2, Gurminder Singh Pamar. 5 Is there a motion? 6 DR. CHU: I move to adopt the staff 7 recommendation. 8 MS. YEE: Okay. Motion by Dr. Chu to adopt the 9 staff's recommendation. Is there a second? 10 MS. MANDEL: Second. 11 MS. YEE: Okay. Please call the roll. 12 MS. OLSON: Madam Chair. 13 MS. YEE: Aye. 14 MS. OLSON: Mr. Leonard. 15 MR. LEONARD: Aye. 16 MS. OLSON: Ms. Steel. 17 MS. STEEL: Aye. 18 MS. OLSON: Dr. Chu. 19 DR. CHU: Aye. 20 MS. OLSON: Ms. Mandel. 21 MS. MANDEL: Aye. 22 MS. OLSON: Motion carries. 23 MS. YEE: Okay. 24 ---oOo--- 25 26 27 28 6 1 ITEM C3. 2 MS. OLSON: Our next item is C3, Joel Sanchez. 3 MS. YEE: Okay, item C3, Joel Sanchez. Is 4 there a motion? 5 MR. LEONARD: I'll put my motion before you, 6 as -- 7 MS. YEE: Yes, Mr. Leonard. 8 MR. LEONARD: -- previously discussed. 9 MS. YEE: Yes. 10 MR. LEONARD: Which is to redetermine but 11 change the fraud to a negligence penalty. 12 MS. YEE: Okay. 13 MR. LEONARD: And then the appropriate 14 adjustments, of course. 15 MS. YEE: Okay. Motion by Mr. Leonard to 16 redetermine but to delete the fraud penalty, impose a 17 negligence penalty with the appropriate adjustments 18 accordingly. 19 Is there a second? 20 MS. STEEL: Second. 21 MS. YEE: Seconded by Ms. Steel. Please call 22 the roll. 23 MS. OLSON: Madam Chair. 24 MS. YEE: No. 25 MS. OLSON: Mr. Leonard. 26 MR. LEONARD: Aye. 27 MS. OLSON: Ms. Steel. 28 MS. STEEL: Aye. 7 1 MS. OLSON: Dr. Chu 2 DR. CHU: No. 3 MS. OLSON: Ms. Mandel. 4 MS. MANDEL: No. 5 MS. OLSON: Motion fails. 6 MS. YEE: Okay, is there another motion? 7 DR. CHU: I move to adopt the staff 8 recommendation. 9 MS. YEE: Okay. Motion by Dr. Chu to adopt the 10 staff's recommendation. Is there a second? 11 MS. MANDEL: Second. 12 MS. YEE: Seconded by Ms. Mandel. 13 Please call the roll. 14 MS. OLSON: Madam Chair. 15 MS. YEE: Aye. 16 MS. OLSON: Mr. Leonard. 17 MR. LEONARD: No. 18 MS. OLSON: Ms. Steel. 19 MS. STEEL: No. 20 MS. OLSON: Dr. Chu. 21 DR. CHU: Aye. 22 MS. OLSON: Ms. Mandel. 23 MS. MANDEL: Aye. 24 MS. OLSON: Motion carries. 25 ---oOo--- 26 27 28 8 1 REPORTER'S CERTIFICATE. 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, BEVERLY D. TOMS, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 April 15, 2009 I recorded verbatim, in shorthand, to the 10 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 8 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: April 27, 2009. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 9