BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 5901 Green Valley Circle, Room 207 Culver City, California REPORTER'S TRANSCRIPT JULY 1, 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 C4 2 Culver City, California 3 July 1, 2009 4 ---oOO--- 5 MS. OLSON: We are now -- the items under 6 submission. And our first item is C4, Renix 7 Corporation. 8 MS. YEE: Okay, we have item C4, Renix 9 Corporation before us, Members. Is there a motion? 10 DR. CHU: I move to adopt the staff 11 recommendation. 12 MS. YEE: Motion by Dr. Chu to adopt the staff 13 recommendation 14 Is there a second? 15 I'll second that motion. 16 Discussion? 17 Please call the roll. 18 MS. OLSON: Madam Chair. 19 MS. YEE: Aye. 20 MS. OLSON: Mr. Leonard. 21 MR. LEONARD: Aye. 22 MS. OLSON: Ms. Steel. 23 MS. STEEL: Aye. 24 MS. OLSON: Dr. Chu. 25 DR. CHU: Aye. 26 MS. OLSON: Ms. Mandel. 27 MS. MANDEL: Aye. 28 MS. OLSON: Motion carries. 3 1 MS. YEE: Thank you. 2 MS. OLSON: Our next item is C6, PFT Alexander 3 Service, Incorporated. 4 MS. YEE: Okay. Item C6 -- 5 MR. LEONARD: Madam Chair. 6 MS. YEE: Yes. 7 MR. LEONARD: Can we go back to the last one 8 for a second? 9 MS. YEE: Renix Corporation? 10 MR. LEONARD: Renix Corporation. 11 MS. YEE: Yes, uh-huh. 12 MR. LEONARD: Is there a way -- because it was 13 testified to that the money had been refunded to the 14 buyers, as we pursue against this taxpayer for this 15 amount, can we offer assistance in -- in the sense 16 that -- these cases that were cited, I didn't know if 17 they were aware of, just to give them these cases, that 18 they can pursue remedies against the buyers to recover 19 the lost tax? 20 MR. LEVINE: We certainly can provide that 21 information. They seem to -- 22 MR. LEONARD: I couldn't tell. 23 MR. LEVINE: It did seem that they weren't 24 aware of that. They don't -- they don't have the power 25 we do. They have to go to -- 26 MR. LEONARD: Right. 27 MR. LEVINE: -- Small Claims Court. 28 MR. LEONARD: No, I understand that we -- 4 1 MR. LEVINE: And we can certainly provide them 2 information so that they can make their case, if they 3 wanted to go to the trouble. 4 I think the bigger problem is finding the 5 people and getting the money even if you get a judgment. 6 MR. LEONARD: That may well be, but the -- the 7 biggest problem is -- is that those buyers knew they had 8 an obligation and didn't pay. And had the money in 9 their hand that wasn't disputed and didn't pay. 10 I understand legally once the retailer/broker 11 took the money they they should have turned it over to 12 the Board of Equalization. But since -- since I know 13 they don't have the money I know that there's a big 14 burden there. 15 Any assistance we could offer in terms of 16 helping to summarize the relevant cases would be my 17 request. Thank you. 18 MS. YEE: Thank you, Mr. Leonard. 19 ---oOo--- 20 21 22 23 24 25 26 27 28 5 1 MS. YEE: Okay. We are on item C6, PFT 2 Alexander Service, Incorporated. . 3 Is there a motion? 4 DR. CHU: Move to adopt the staff 5 recommendation. 6 MS. YEE: Motion by Dr. Chu to adopt the staff 7 recommendation. 8 Is there a second? 9 I will second that motion. 10 Discussion. 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 6 1 ITEMD1 2 MS. OLSON: Our last item for today is D1, Said 3 T. Saad. 4 MS. YEE: Okay, we have item D1, Said T. Saad. 5 Is there a motion? 6 DR. CHU: Move to adopt the staff 7 recommendation. 8 MS. YEE: Okay. Motion by Dr. Chu to adopt the 9 staff recommendation. 10 Is there a second? 11 MS. MANDEL: Second. 12 MS. YEE: Second by Ms. Mandel. Without 13 objection, that motion carries. 14 MS. OLSON: That concludes our business for 15 today. 16 MS. YEE: Okay. 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 7 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 July 1, 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 7 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: July 22, 2009. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 8