1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 JUNE 9, 2009 9 10 OTHER CHIEF COUNSEL MATTERS 11 ITEM M1 12 PROCEDURES RELATED TO 13 REVENUE & TAXATION CODE SECTION 7056 14 15 ---o0o--- 16 17 18 19 20 21 22 23 Reported by: Juli Price Jackson 24 No. CSR 5214 25 26 27 28 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 Diane G. Olson 14 Chief, Board Proceedings Division 15 16 For Legal: Jean Ogrod 17 Randy Ferris 18 19 20 21 ---oOo--- 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JUNE 9, 2009 4 ---oOo--- 5 MS. OLSON: Then next item is Chief Counsel 6 Maters, M1, Procedures related to Revenue and Taxation 7 Code Section 7056. 8 MS. OGROD: Madam Chair, Board Members, I'm 9 Jean Ogrod, for Legal staff. With me is Randy Ferris, 10 also for the Legal staff. 11 Under Revenue and Taxation Code 7056 (b), 12 persons authorized by resolution of a local jurisdiction 13 may examine Board sales and use tax records pertaining 14 to the ascertainment of local sales and use tax 15 collected for the local jurisdiction by the Board 16 pursuant to contract. 17 Subdivision (b)(1) of the statute says that 18 that resolution shall certify that any person designated 19 by the resolution, other than an officer or employee of 20 the local jurisdiction meets all of the conditions set 21 forth in subdivision (A) through (D). 22 A copy with -- a paper with an excerpt from 23 7056 with those provisions has been distributed to you. 24 And there are also copies available in the back of the 25 room, I believe, for any member of -- or anyone in the 26 public that might like to have a copy to look at for 27 purposes of the discussion today. 28 The Board is particularly interested today in 3 1 hearing comments on subdivision (b)(1)(C), which 2 requires that the resolution certify that the person 3 designated by the local jurisdiction is prohibited by 4 the contract that it has with the local jurisdiction 5 from performing consulting services for a retailer 6 during the term of that contract. 7 And the Board is also interested in your 8 comments on whether this prohibition in item (C) on 9 consulting for retailers applies to all retailers in 10 every instance or whether in some instances it might be 11 more limited, such as, for example, when the resolution 12 authorizes examination of only certain Board records, 13 those pertaining to a very limited number of retailers, 14 for example. 15 MS. YEE: Okay. Thank you very much, 16 Ms. Ogrod. 17 Do we have any public speakers on this? 18 MS. OLSON: No, no one has signed up. 19 MS. YEE: Okay. This does relate to a matter 20 that we do want to discuss in closed session. 21 And the wish of the Members? Do you want to 22 convene in closed session at this point to take this up? 23 DR. CHU: Okay. 24 MS. YEE: Let's do that while we've got this 25 fresh in our minds. 26 MS. MANDEL: There's no speakers? 27 MS. YEE: No speakers. I was expecting 28 speakers too. 4 1 MS. MANDEL: I was expecting speakers too, but 2 then I guess they didn't know what the item would be 3 because there was no materials. 4 MR. LEONARD: Madam Chair? 5 MS. YEE: Yes, Mr. Leonard? 6 MR. LEONARD: Just a question to Legal, put it 7 on the table, do we have any regulations implementing 8 this Code Section, particularly subsection (C)? 9 MS. OGROD: No, we do not. 10 MR. LEONARD: And at this point are you 11 recommending any to us to promulgate? 12 MS. OGROD: We have no -- we have no proposed 13 regulation at this point, no. 14 MR. LEONARD: Thank you. 15 MS. YEE: Let's do this, if we could, let's 16 convene in closed session on this while this is fresh in 17 our mind and continue the discussion. 18 MS. OLSON: The Board will now go into closed 19 session to discuss pending litigation and personnel 20 matters. 21 ---o0o--- 22 23 24 25 26 27 28 5 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 JUNE 9, 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 pages 1 13 through 5 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: June 28, 2009 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 6