BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

                                 450 N Street, Room 121

                                 Sacramento, California

                

                

                

                                  REPORTER'S TRANSCRIPT

                                    JANUARY 27, 2010 

                

                

                

                

                

                

                                         ITEM J4

                                  CHIEF COUNSEL MATTERS

                                       RULEMAKING 

                                   SECTION 100 CHANGES

                

                

                

                                  Reported by:  Beverly D. Toms

                                               CSR # 1662

                

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            1                         P R E S E N T

            2   

            3   For the Board              Betty Yee 
                of Equalization:           Chair
            4   
                                           Jerome E. Horton 
            5                              Vice-Chair
                
            6                              Bill Leonard 
                                           Member
            7   
                                           Michelle Steel
            8                              Member
                
            9                              Marcy Jo Mandel 
                                           Appearing for John         
           10                              Chiang, State Controller   
                                           (per Government Code 
           11                                   Section 7.9)
                
           12                              Diane Olson  
                                           Chief, Board           
           13                              Proceedings Division
                
           14   Board of Equalization
                Staff:                     Bradley Heller
           15                              Legal Department
                
           16                           ---oOo---

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            1                                   Sacramento, California

            2                                   January 27, 2010 .  

            3                           ---oOO---

            4            MS. OLSON:  And our next item is J4, Sales and 

            5   Use Tax Regulation 1597, Property Transferred or Sold by 

            6   Certain Nonprofit Organizations.  

            7            MR. HELLER:  And again staff is here to request 

            8   authorization to complete Rule 100 changes -- excuse me, 

            9   to complete Rule 100 changes to Regulation 1597, to 

           10   incorporate newly enacted Revenue and Taxation Code 

           11   6018.9.  And that is a provision allowing nonprofit 

           12   organizations to be the consumers of tangible personal 

           13   property transferred to their members under certain 

           14   specified conditions. 

           15            And I wanted to point out that there is a -- a 

           16   typo in the -- in the public agenda notice, and it 

           17   should just refer to the requirements for a 501(c) 

           18   organization.  The typo added the "3", which is a -- is 

           19   specifically certain types of charitable organizations.  

           20            But the statutory authorization and the Rule 

           21   100 amendments are broader and they apply to all 501(c) 

           22   organizations.  

           23            MS. YEE:  Okay.  Very well.  

           24            MR. HORTON:  So moved.  

           25            MR. LEONARD:  So you weren't trying to narrow 

           26   the new law then?  

           27            MR. HELLER:  I was not.  I think -- I don't 

           28   know.  Somehow we just added a 3, I think.  




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            1            MS. YEE:  Okay.  Motion by Mr. Horton to 

            2   authorize the Rule 100 change.  

            3            Is there a second?  

            4            MS. MANDEL:  Second.  

            5            MR. HORTON:  Second. 

            6            MS. YEE:  Second by Ms. Mandel.  

            7            Without objection that motion carries. 

            8            Thank you.  

            9                           ---oOo---

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            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   January 27, 2010 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 4

           13   pages constitute a complete and accurate transcription 

           14   of the shorthand writing.

           15   

           16   Dated:  February 4, 2010.  

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           20                          ____________________________

           21                          BEVERLY D. TOMS

           22                          Hearing Reporter

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