1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MARCH 23, 2010 9 SPECIAL PRESENTATION 10 PRESENTATION OF BOARD RESOLUTION 11 HONORABLE BILL LEONARD 12 13 14 15 16 17 18 19 20 21 22 Reported by: Juli Price Jackson 23 No. CSR 5214 24 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 Jerome E. Horton 6 Vice-Chair 7 Barbara Alby Acting 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 G. Olson Chief, Board 14 Proceedings Division 15 16 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MARCH 23, 2010 4 ---oOo--- 5 MS. YEE: I'll call the Board of Equalization 6 meeting to order. 7 And where are my Members? 8 Thank you very much. 9 Let me take this opportunity to welcome our 10 newest Member on the dais, Acting Board Member Barbara 11 Alby, formerly Chief Deputy to Board Member Bill 12 Leonard. 13 And our first item on the agenda, Ms. Olson? 14 MS. OLSON: It's a special presentation to 15 honor the Honorable Bill Leonard. 16 MS. YEE: Thank you. 17 Members, will you join me down off the dais? 18 MR. HORTON: Yay for Barbara. 19 MS. YEE: By the way, we're surrounding you and 20 we're not letting you leave. 21 So -- 22 MR. LEONARD. I see. 23 MS. YEE: Thank you. Thanks for coming back. 24 I'm going to let you hold this. 25 MR. LEONARD: Okay. 26 MS. YEE: But it's really very bittersweet that 27 we are all here to honor Bill Leonard for seven years of 28 great service on this Board. 3 1 And, first of all, congratulations on your 2 appointment as Secretary to the State Consumer Services 3 Agency. 4 And I can't think of a better person to be over 5 there doing battle with D. G. S. and really watching out 6 for this Board's interests as it relates to our 7 facilities. 8 But I just want to say a couple of words about 9 Bill. I've known him for a long time. And I just have 10 to say what a stellar, stellar career in public 11 service -- 24 years in the legislature, seven years on 12 this Board, and always with an eye to really trying to 13 make a difference in peoples' lives and here 14 particularly with taxpayers and just being sure that 15 taxpayers have opportunities to just be successful and 16 thrive here in California. So, I wanted to acknowledge 17 that. 18 But, more importantly, I just have to say, on a 19 personal note, he's just been a wonderful, wonderful 20 colleague. And I think part of it is that we both had 21 our start as staff in the legislature and you learn how 22 to roll up your sleeves and get it done in short order. 23 And I really appreciate that. We've been great 24 partners in crime around here. And really for all of 25 you here in the audience who are part of the BOE family, 26 this is a really remarkable Board. 27 When the rest of the State is facing 28 significant budget challenges and furloughing their 4 1 employees, this Board unanimously decided not to do 2 that. And I can't even imagine how difficult my job 3 would have been had I had my Members split on that 4 issue, but unanimously, unanimously. 5 We understand the core mission of this agency. 6 We understand the commitment that our employees have to 7 the work that they do. 8 And to Bill, just thank you for stepping up and 9 really, you know, being protective of the core mission 10 of this organization. 11 And I wanted to present a couple of gifts 12 because these are some things that really memorable that 13 will always make me think about Bill. 14 First is our shared love for dark chocolate. 15 MR. LEONARD: Oh, lunch. 16 MS. YEE: Secondly, something for you and 17 Sherry to share, and I'm sorry Sherry couldn't be here, 18 but just -- 19 MR. LEONARD: I'm sorry she's not here. 20 MS. YEE: -- but just in terms of her 21 generosity in sharing you with us, we wanted to be sure 22 that you had an opportunity to share some private time 23 with her and enjoy a evening together. 24 MR. LEONARD: Thank you. 25 MS. YEE: And then my favorite gift, which I 26 will always, always, always remember you for, and that 27 is in your neverending quest to uphold fairness and 28 justice, you are now going to be officially a card 5 1 carrying member of the A. C. L. U. 2 MR. LEONARD: Thank you, I may even renew. 3 That's wonderful. 4 MS. YEE: So, I know your colleagues probably 5 want to each say something. 6 MR. HORTON: Okay. You know, I really haven't 7 been on the Board long enough to actually miss Bill, but 8 I've had the great fortune of serving with him in the 9 legislature, where we became close friends on a number 10 of different issues. 11 And he is truly a champion of the people. He's 12 very passionate and he's very -- he's very concerning -- 13 very much concerned about the people, about the staff, 14 about the Members. He's just a champion among champions 15 and that -- I'm getting a little choke throat here, 16 Bill. 17 So, I won't necessarily miss Bill, but I will 18 miss his character. I will miss his conviction, his 19 courage, his commitment and all of the fine things about 20 him that makes him such you a special person. 21 MS. STEEL: I'm going to miss Bill so much 22 because from the first day I came on to the Board and 23 he's been helping me. And he tells me how to vote and 24 he -- and sometimes I go against him and he still 25 seconded and I really appreciate that. 26 MR. LEONARD: Doesn't learn. 27 MS. STEEL: And you know what, only my concern 28 is his new staff doesn't know how much chocolate he 6 1 eats. So, I brought extra gift. 2 MR. LEONARD: Oh, my goodness. 3 MS. STEEL: This one is especially for you. 4 Open it -- yeah. 5 And then I don't think that's enough, so, I 6 brought more. 7 MR. LEONARD: A cigar box? 8 MS. STEEL: Exactly. So, I think this is 9 going to provide his lunch for next whole week, at 10 least. So, I brought this. 11 I am going to miss you so much, Bill. 12 MR. LEONARD: I'm going to miss you so much. 13 MS. MANDEL: I wound up with the microphone. 14 It's always been wonderful to have Bill on the 15 other end. We have -- I don't know if you can really 16 tell from sitting down here, but the dais is really kind 17 of curved, which is much better, I think, here in 18 Sacramento than in Culver City, where it's just like a 19 straight table. 20 MR. LEONARD: You sit back. 21 MS. MANDEL: So, you can look down the line and 22 you can really see everyone. 23 And, of course, I sit on this end and Bill sits 24 on the other. And, so, it's -- you know, we have this 25 whole -- you can sort of tell, you know, it's a nice 26 thing to have someone on the other end there and you can 27 look down there and get a little comfort, or whatever. 28 It's really been great having him here. I'm 7 1 going to miss him. 2 I know that, you know, John thinks highly of 3 you. And I think I was in New York when I sent the 4 e-mail that I had heard that you had gotten this 5 appointment and that e-mail came back so fast, "Send me 6 his phone number." 7 So, congratulations, we're going to miss you -- 8 MR. LEONARD: Thank you. 9 MS. MANDEL: -- very much. 10 MS. ALBY: Now it's my turn. 11 MS. MANDEL: In more ways than one. 12 MS. ALBY: In more ways than one. 13 MR. LEONARD: That's right. 14 MS. ALBY: Well, Bill, I didn't bring you any 15 chocolate. Actually, I took your desk. 16 But we want you to know your staff is here and 17 would Bill -- would our staff stand up, please? 18 MR. LEONARD: Yes please? 19 MS. ALBY: They're here today. 20 Thank you. And I just speak for all of us, and 21 that is, we do miss you very much. 22 Bill treats us like family. He treats a lot of 23 folks like family. And it's been a bittersweet thing 24 for me to have him move on. 25 But I want you to know, Bill, that your staff 26 and your Board Member will carry on in your footsteps of 27 joining with this family and this family and all of the 28 folks that are upstairs, the Board of Equalization 8 1 family, to do right by the people of California and 2 particularly your district. 3 And it's been an honor to serve you for seven 4 years. It's been like a brother, more than a boss but 5 that relationship gets to go on and I'm very grateful 6 for that. 7 And you have been a tremendous inspiration to 8 me, a mentor. And I love you and appreciate you very 9 much. 10 MR. LEONARD: I'm overwhelmed -- not just for 11 the calories, but your love and appreciation. 12 And I -- well, let me tell you, first of all, 13 when Fred Aguire kind of casually mentioned would I be 14 open to something, I had no idea what he had in mind. 15 As the Governor's Deputy Chief of Staff, I 16 figured there was some agenda. About the first thing he 17 said was, "And you can't tell anyone." 18 And you don't know the guilt I suffered. I've 19 shared everything with my staff and most everybody else 20 just without restriction. And to -- I didn't lie to 21 you, but I didn't fully disclose for that whole time 22 that it was underway, that the discussion went back and 23 forth a few days -- it was a very short period that I 24 didn't tell you everything. 25 And it's -- I hope it's more sweet than bitter 26 for you. It's very bittersweet for me because I missed 27 reading cases this week on that. And I know there's 28 taxpayers here that are seeking a time to address the 9 1 Board and I appreciate and honor that. And I'm sorry 2 I'm no longer a part of it. 3 And it's the first time since 1974 that I'm not 4 an elected official. So, I am -- I'm really getting 5 used to different things than I have ever done so 6 before. 7 I am chained -- in fact, he may have just 8 called. I have to have my own Blackberry because my 9 cell phone wasn't good enough because the Governor only 10 calls on this one (indicating) -- yeah, like you, and it 11 was just buzzing while Betty was talking, but I'll run 12 the risk and ignore him for a few minutes. 13 Because I want to say thank you to my 14 colleagues on the Board. You'll always be my 15 colleagues, it is a family relationship. And I've just 16 enjoyed our time together, working for the betterment of 17 this Department, working for the justice for taxpayers 18 and how we proceed with fair tax administration. 19 It's -- it's -- it's hard to overstate just how 20 important it is. And I know how much you all are 21 dedicated to it. And you'll continue, it'll go on. 22 I'm -- when I figured out that I was never 23 going to break Bill Bennett's record as a -- under a 24 term limited era on this Board, I knew my time would end 25 sometime. And the fact that it's ending a bit early is 26 a challenge for me that I am really excited about taking 27 up. 28 And it's an opportunity to -- to let Barbara 10 1 stretch her legs on behalf of the people of the Second 2 District and I really wanted to do that. 3 Now the other thing Fred Aguire said is I 4 couldn't take anybody with me. That was more than 5 bittersweet, although I knew it was offset because 6 Barbara had a good team in hand. 7 But I walked into an office that's been working 8 for the last four months, at least, that there would 9 never be a Secretary for the rest of the administration 10 and you're on your own. 11 And I walked in the afternoon I was sworn in 12 with a little box of -- my Bible, my constitution and a 13 couple of chocolate bars and said, "Hi, I'm the 14 Secretary. I'm your new boss," and moved in that way. 15 It's -- I inherited a new team that I'm 16 impressed with. I'm not sure they're quite where you 17 guys are, but we'll work on that in the mission that I 18 am doing as Secretary and serving the Governor and 19 representing the departments that I represent. 20 So, it's -- I will see you guys in a different 21 format. Oh, I had -- I had the keys to a new 22 headquarters, but I left them on my desk. 23 I will work with you on our mutual issues of 24 management and administration. I'd love to deliver 25 keys, but I'm not going to overpromise anything on that. 26 But you'll have -- you'll have more than my 27 attention in the efforts of this department to fulfill 28 its mission and do its purpose. 11 1 And even though technically you're not one of 2 mine as an agency and legally you're a totally 3 independent constitutional agency, which I respect, I 4 know there is a lot that my State people can do to make 5 sure this department fulfills its mission and purpose. 6 And I pledge to be a part and help you on that 7 every way I can. 8 So, I'm five blocks down the street, come and 9 visit. I'm second floor above the State Treasurer, Bill 10 Lockyer, and have a view of all the demonstrators on the 11 Capitol lawn and everything else. So, it's a little 12 change in scenery, but not too far away. So, I 13 encourage you all to drop by and get a tour -- it's 14 actually not much to see, it's the oldest State office 15 building. 16 The first thing when I came in there they made 17 me sign an asbestos waiver. And I thought of you all. 18 Okay, it just doesn't matter where I go, it just sort of 19 follows me. 20 So, I signed the waiver. And I am not throwing 21 things up at the ceiling, not going to take that chance. 22 Thank you guys so much for all of the help you 23 have given to me. Thank you to the BOE employees for 24 the job you do. 25 Thank you to my staff for making me look so 26 good at every chance you did. Thank you for Barbara 27 being there every step. 28 And to my colleagues from the other Districts 12 1 of California and our State controller, keep doing the 2 good job. 3 And it's my -- I know it sounds trite, but I -- 4 I always come into a Board meeting and really say, "What 5 would Jesus do?" And just try to -- try to behave and 6 listen to the taxpayers and apply the law just in the 7 same way that it would be done by a person of full 8 integrity. 9 And I know guys do the same. And I admire and 10 respect that. Whether we vote together or not, it's -- 11 I know you get there by that same application of 12 intelligence and thought and critical thinking. 13 Thank you all very, very much for letting me 14 come by and interrupt a Board hearing to do this. 15 God bless. 16 I'm just a constituent. 17 MS. YEE: We're not quite done with you. 18 MR. HIRSIG: Yeah, Bill, we can't let you out 19 yet. 20 As the Director and on behalf of all the 21 executive team and the managers here, you can't have all 22 that sweet stuff without a little of sour. So, one of 23 the things that Bill has taught us over the last few 24 years and your father taught that to you, and you have 25 always said to us, "When you get lemons, make lemonade." 26 So, you get a tree and of all things, a picture 27 that we have here that's engraved that says, "Make 28 lemonade." 13 1 And that's heartfelt. Thank you, Bill. 2 MR. LEONARD: Bless you. 3 Thank you, that's wonderful. 4 MR. HIRSIG: We'll deliver, just bring enough 5 for our next meeting. 6 MR. LEONARD: That's wonderful. Actually, my 7 lemon tree hasn't come in yet, perfect timing. 8 ---o0o--- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 14 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 MARCH 23, 2010 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 14 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: MAY 4, 2010 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 15