BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT MAY 26, 2010 ITEM J1 CHIEF COUNSEL MATTERS RULEMAKING 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 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 Joann Richmond Property Tax Appeals Analyst 14 Board Proceedings Division 15 16 Board of Equalization Staff: Bradley Heller 17 Tax Counsel 18 19 ---oOo--- 20 21 22 23 24 25 26 27 28 2 1 Sacramento, California 2 May 26, 2010 3 ---oOO--- 4 MS. RICHMOND: Our next item is Chief Counsel 5 Matters, Rulemaking. Proposed Regulation 1698.5, Audit 6 Procedures. 7 Mr. Heller will introduce this case. 8 MS. YEE: Thank you. Good afternoon, Mr. 9 Heller. 10 MR. HELLER: Good afternoon, Madam Chair, 11 Members of the Board. I'm here on behalf of the staff 12 to request that the Board adopt proposed Regulation 13 1698.5, Audit Procedures, with the changes the Board 14 approved in March. 15 MR. HORTON: So moved. 16 MS. YEE: Okay, motion by Mr. Horton. Is there 17 a second? 18 MS. MANDEL: Second. 19 MS. YEE: Second by Ms. Mandel. 20 Discussion? 21 MS. STEEL: I -- 22 MS. YEE: Ms. Steel. 23 MS. STEEL: Madam Chair. 24 MS. YEE: Yes. 25 MS. STEEL: I think this is entirely 26 unnecessary for this to make regulations. It's more 27 suited for the Audit Manual and this one shows that 28 overly-burdensom regulations to the business environment 3 1 in the State. So I still cannot go for it. 2 MS. ALBY: I cannot see -- 3 MS. YEE: Okay. Thank you, Ms. Steel. 4 Other comments? 5 MS. STEEL: It's J1. 6 MS. ALBY: I know, I'm looking. I can't find 7 it. 8 MS. YEE: This is J1. 9 MS. STEEL: It's the audit manual. 10 MS. ALBY: You know -- 11 MS. STEEL: Regulation. 12 MS. ALBY: Go ahead, don't wait for me, I'll -- 13 I'll find it. 14 MS. YEE: Okay. We may have comments. 15 MS. ALBY: Here we go. Got it. 16 Yup, I'm with you. 17 MS. YEE: Any comments? 18 MS. ALBY: (Inaudible). 19 MS. YEE: Okay. All right, motion by Mr. 20 Horton, second by Ms. Mandel to adopt the proposed 21 regulation as amended. 22 Please call the roll. 23 MS. RICHMOND: Madam Chair. 24 MS. YEE: Aye. 25 MS. RICHMOND: Ms. Alby. 26 MS. ALBY: No. 27 MS. RICHMOND: Ms. Steel. 28 MS. STEEL: No. 4 1 MS. RICHMOND: Mr. Horton. 2 MR. HORTON: Aye. 3 MS. RICHMOND: Ms. Mandel. 4 MS. MANDEL: Aye. 5 MS. RICHMOND: Motion carries. 6 MS. YEE: Thank you. Thank you, Mr. Heller. 7 MR. HELLER: Thank you. 8 ---oOo--- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 REPORTER'SCERTIFICATE 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 May 26, 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 5 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: June 2, 2010 . 17 18 19 20 ____________________________ 21 BEVERLY D. TOMS 22 Hearing Reporter 23 24 25 26 27 28 6