BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 5901 Green Valley Circle, Room 207 Culver City, California REPORTER'S TRANSCRIPT JUNE 16, 2010 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 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 Olson Chief, Board 14 Proceedings Division 15 Board of Equalization 16 Staff: David Levine Tax Counsel IV 17 Anthony Epolite 18 Tax Counsel 19 Grant Thompson Tax Counsel 20 21 ---oOo--- 22 23 24 25 26 27 28 2 1 ITEM B11 2 Culver City, California 3 June 16, 2010 4 ---oOO--- 5 MS. YEE: Let's reconvene and take up the items 6 under submission. 7 Ms. Olson, what's our first case? 8 MS. OLSON: Our first one is B11, Ronald N. 9 Frazar and Jane A. Frazar. 10 MS. YEE: Okay, Members, the first item is B11, 11 Ronald N. Frazar and Jane A. Frazar. 12 May I have a motion, please? 13 MR. HORTON: Motion to sustain the Franchise 14 Tax Board. 15 MS. YEE: Okay. Motion by Mr. Horton to 16 sustain the Franchise Tax Board. Is there a second? 17 MS. MANDEL: Second. 18 MS. YEE: Second by Ms. Mandel. 19 Discussion? 20 MS. STEEL: You know, I think that between that 21 new regulation came out, 17 -- what they call -- 22 MS. YEE: New reg. 23 MS. STEEL: -- there -- yeah -- the person -- 24 MS. YEE: 17952? 25 MS. STEEL: Yeah, 17592. Is that -- 26 MS. YEE: 952. 27 MS. STEEL: 952. I think there's no clearance 28 guidance so I think taxpayer -- because that came in on 3 1 2007 but this tax years are 2005 and 2006, so I think we 2 should give this taxpayer a little break here. 3 MS. YEE: Okay. I guess I saw it differently. 4 I don't -- I mean, just setting the reg. aside I don't 5 believe that there were any gaps in terms of any lack of 6 guidance in the statutes relative to the sourcing of 7 income. And, you know, there was a lot of activity with 8 respect to the repeal of 17554 and the amendments to 9 17041, but there's still I thought was enough -- I just 10 didn't see any gaps in the statutes to really warrant 11 the Appellant's not -- not having any sense of how to 12 treat the installment income. 13 MS. STEEL: But when law is very clear then why 14 they make amendment -- you know, new regulations there, 15 try to cover that up. So, that's the reason that I'm 16 going for taxpayer. 17 MS. YEE: Okay. Other thoughts, Members? 18 MR. HORTON: Yes. 19 MS. YEE: Mr. Horton. 20 MR. HORTON: Madam Chair, I went back and took 21 a look at the AB 115 and -- and then took a look at the 22 Federal law which sought to bring some consistency and 23 some conformity relative to how retirement income was 24 treated. And I actually agreed with the Federal 25 perspective, which was passed in 1996, which sought to 26 preempt State law in order to provide that -- a 27 conformity in the treatment of pensions so that the 28 pensions of State employees and so forth when they 4 1 retire, because that's a condition subsequent. They 2 were actually earning -- they haven't earned it. There 3 are a lot of criteria that goes into before you can 4 actually qualify for your retirement. And then once 5 you're -- once you're qualified it's still subject to 6 change in -- in a number of environments. 7 I mean, the retirement can be reduced, taken 8 away, adjusted and so forth. And so the Federal law 9 wanted to bring some conformity in 1976 to specifically 10 preempt State law and say that pensions are taxable 11 based on domicile, where you're located at the 12 particular time. 13 But when we go back and take a look at AB 115, 14 you know, it says absolutely nothing about altering the 15 source of income, if you will. And so for me I agree 16 with the Chair, the law is consistent throughout the 17 period of consideration. The source of funds is where 18 the source is earned. The transaction is where the 19 transaction took place. And the tax is due. The 20 installment sales, it's just a method in which you're 21 making a payment similar to a financial method of 22 financing a particular transaction. 23 And therefore the reason that I made the motion 24 to sustain the Franchise Tax Board. 25 MS. YEE: Okay. Other comments? Discussion? 26 Okay, I have a motion by Mr. Horton, seconded 27 by Ms. Mandel to sustain the Franchise Tax Board. 28 Please call the roll. 5 1 MS. OLSON: Madam Chair. 2 MS. YEE: Aye. 3 MS. OLSON: Ms. Alby. 4 MS. ALBY: No. 5 MS. OLSON: Ms. Steel. 6 MS. STEEL: No. 7 MS. OLSON: Mr. Horton. 8 MR. HORTON: Aye. 9 MS. OLSON: Ms. Mandel. 10 MS. MANDEL: Aye. 11 MS. OLSON: Motion carries. 12 ---oOo--- 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 1 ITEM B12 2 MS. OLSON: Our next item is B12, David Lail 3 and Karen Lail. 4 MS. YEE: Okay, we're on item B12, David Lail 5 and Karen Lail. May I have a motion, please. 6 MR. HORTON: Move to sustain the Franchise Tax 7 Board. 8 MS. YEE: Okay, motion by Mr. Horton to 9 sustain the Franchise Tax Board. Is there a second? 10 MS. MANDEL: Second. 11 MS. YEE: Second by Ms. Mandel. Discussion? 12 Okay. 13 MS. STEEL: I have a -- 14 MS. YEE: Ms. Steel. 15 MS. STEEL: You know what? I thought Franchise 16 Tax Board putting this one as a compensation for 17 services. I think it was -- I mean, I wish I can get 18 that kind of compensation, so it was really big but only 19 thing really bothers me about taxpayer and taxpayer is 20 tax -- I mean is a tax attorney and he didn't get 1099 21 and royalty on it. 22 So I'm going to go with the staff for this 23 time. 24 MS. YEE: Okay. A motion by Mr. Horton, 25 seconded by Ms. Mandel to sustain the Franchise Tax 26 Board. 27 Without objection, that motion carries. 28 ---oOo--- 7 1 ITEM B13 2 MS. OLSON: Our next item is B13, Elisabeth 3 Bossingham. 4 MS. YEE: Okay. We are on item B13, Elisabeth 5 Bossingham. May I have a motion? 6 MS. ALBY: Tax protester. Sustain the 7 Franchise Tax Board. 8 MS. YEE: Okay. We have a motion by Ms. Alby 9 to sustain the Franchise Tax Board. 10 Is there a second? 11 MR. HORTON: Second. 12 MS. YEE: Okay. You have a thought about a 13 frivolous appeal penalty, Ms. Alby? 14 MS. ALBY: Yes. Where am I? 15 No, I don't -- what's the pleasure of the Board on that? 16 MS. YEE: $1500. 17 MR. HORTON: I concur. 18 MS. ALBY: I do, too. 19 MS. YEE: Okay. 20 MS. STEEL: But this taxpayer actually reported 21 some amount of money. It's not like other tax 22 protestors that -- who didn't even report anything for 23 the last five to ten years. So, don't we have to give 24 this taxpayer a little credit for that? 25 So may not 1500 but 750? 26 MS. YEE: Well, let's see. 27 MS. STEEL: Taxpayer reported -- but it's -- he 28 was her husband and -- 8 1 MS. ALBY: He was (inaudible). 2 MS. STEEL: BOE assessed 750 in 2000. So 3 you're going to go for -- 4 MS. YEE: This is the Appellant's second appeal 5 of this nature. So, -- 6 MS. STEEL: I just go for whatever. 7 MS. YEE: I think previously there had been a 8 $750 frivolous appeal penalty imposed. 9 So, Ms. Alby, what's your pleasure? 10 MS. ALBY: Well, I think we -- I think the 11 $1500 is appropriate. 12 MS. YEE: Okay. Motion by Ms. Alby to sustain 13 the Franchise Tax Board, and to impose a -- 14 MR. EPOLITE: I wonder if I could get a 15 clarification, is there a particular tax year that we're 16 going to apply this penalty to? 17 MR. THOMPSON: To add, sometimes for 18 administrative and collection purposes we'll split it 19 equally among the years. 20 MS. YEE: There are -- let's see. 21 MR. EPOLITE: This is the second appeal for 22 the -- 23 MS. YEE: Second appeal but it's -- 24 MR. EPOLITE: -- 2000 year, so -- 25 MS. YEE: -- 2000 -- 26 MR. EPOLITE: -- that is a -- 27 MS. YEE: -- through 2005. 28 MR. EPOLITE: But there are the six years 9 1 before you. 2 MS. YEE: Uh-huh. They're getting a deal. 3 MS. MANDEL: We have -- we have what, like five 4 years here? 5 MR. EPOLITE: It's actually six years. 6 MS. YEE: Six years. 7 MS. MANDEL: Six years. 8 MR. EPOLITE: So it can be apportioned over 9 the -- the six -- 10 MS. YEE: Yeah. 11 MR. EPOLITE: -- six years. 12 MS. YEE: Okay. Motion by -- 13 MS. MANDEL: That's where you're going. I 14 was -- I think I was higher, but whatever the 15 (inaudible). 16 MS. YEE: Do you want to share your 17 observations, Ms. Mandel? 18 MS. MANDEL: Well, I -- it was because of how 19 many -- you know, often -- often we see, you know -- 20 we've done, yeah, so much per year. Although this 21 was -- I guess I could back off that a little bit 22 because this was all in one appeal and there weren't 23 separate briefing packets for each year, as I recall, 24 right? 25 MR. EPOLITE: That is correct. 26 MS. MANDEL: Yeah. Okay. 27 MR. HORTON: Good? 28 MS. MANDEL: Yeah. 10 1 MS. YEE: Okay. So, we -- motion by Ms. Alby 2 to sustain the Franchise Tax Board and to impose a $1500 3 frivolous appeal penalty to be apportioned equally for 4 each tax year. Second -- is there a second? 5 I'll second that motion. 6 Any further discussion? 7 Hearing none, without objection, such will be 8 the order. 9 ---oOo--- 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11 1 ITEM B14. 2 MS. YEE: Okay. 3 MS. OLSON: Our next item is B14, Hendrika 4 Bouwmeester. 5 MS. YEE: Okay. Item B14, Hendrika 6 Bouwmeester. Is there a motion? 7 MR. HORTON: Move to sustain the Franchise Tax 8 Board. 9 MS. YEE: We have a motion by Mr. Horton to 10 sustain the Franchise Tax Board. Is there a second? 11 MS. ALBY: I'll second. 12 MS. YEE: Second by Ms. Alby. 13 Discussion? 14 MS. MANDEL: Sure. 15 MS. YEE: Ms. Mandel. 16 MS. MANDEL: Let me just -- it's a -- it's a 17 very unfortunate case with the facts as stated, and I 18 can understand how the incident could create the 19 personal and psychologic problems and concerns that she 20 had and was relayed in the e-mail about being too 21 upsetting to come. But it -- it seems like the part 22 that might have been missing was then why was it the tax 23 returns that couldn't get done when it seemed that other 24 things were taken care of, like working at some level. 25 That seemed a little bit -- that connection wasn't that 26 clear. 27 But it's -- I don't know the circumstances of 28 the years prior to this year when she was filing late. 12 1 And I don't know if there's something about the taxes 2 that gets -- you know, gets bollixed up for later years, 3 as well, but I -- I wouldn't want to -- I'm not 4 discounting her -- her story. 5 MS. YEE: Right. 6 MS. MANDEL: But I -- I feel like there's -- 7 that -- that we often say to people that if you're late 8 and yet you were attending to your other affairs then 9 how were those bad events -- how -- how -- why is it 10 that the tax return was impacted when you could do these 11 other -- when you were doing these other things. 12 So that was where it seemed to -- the 13 connection didn't seem to be made completely. 14 MS. YEE: Okay. Yeah. 15 MS. MANDEL: But I was very sympathetic and an 16 unfortunate situation as described by the taxpayer. 17 MS. YEE: Uh-huh, I concur. Other comments? 18 MS. STEEL: Yeah, it was filing domestic abuse 19 incident happened, and I understand that what she had to 20 go through, but she's been late from 1998, that's what 21 Franchise Tax Board said. So, none of the year was, you 22 know, filed timely so I think I'm going to go for 23 Franchise Tax Board. 24 MS. YEE: Okay. Very well. Other comments? 25 Okay, I have a motion by Mr. Horton, second by 26 Ms. Alby to sustain the Franchise Tax Board. 27 Without objection, that motion carries. 28 ---oOo--- 13 1 ITEM B16 2 MS. OLSON: Our next item is B16, Robert M. 3 Miller. 4 MS. YEE: Okay, item B16, Robert M. Miller. 5 May I have a motion, please. 6 MR. HORTON: Move to sustain the Franchise Tax 7 Board. 8 MS. YEE: Okay. Motion by Mr. Horton to 9 sustain the Franchise Tax Board. Is there a second? 10 MS. MANDEL: Second. 11 MS. YEE: Second by Ms. Mandel. 12 Discussion? 13 MS. STEEL: Is that additional refund is being 14 granted by FTB or -- or taxpayer already got that 15 refund? $499.52. 16 MS. YEE: I think -- yeah. 17 MS. MANDEL: I think he has that, huh? 18 Let me see. Yeah, they explained that, didn't they -- 19 MS. YEE: That was the over-collection. 20 MS. MANDEL: -- Anthony? That the -- he wanted 21 to know what happened to his $432.31 refund which was 22 never cashed. My notes were that the check went back to 23 FTB, which then refunded him $165.89 and transferred the 24 other -- transferred 123.94 to his 2005 liability and 25 offset a $142.48 liability of his spouse to San Diego 26 County. That's my notes. 27 But I think FTB sent something in about that, 28 didn't they? 14 1 MR. EPOLITE: Well, there was also a refund for 2 $499.52 -- 3 MS. YEE: Right. 4 MR. EPOLITE: -- that FTB notified Appellant 5 that -- that there would be that refund amount 6 forthcoming based on -- 7 MS. MANDEL: Oh, right -- 8 MR. EPOLITE: -- their refund -- 9 MS. MANDEL: -- that's -- I see that one, too. 10 So, is that -- is that -- do we have to include that in 11 our motion or they're going to -- I think that's her 12 question, that the 499 -- 13 MR. EPOLITE: No, I do not believe so, no. 14 MS. YEE: Okay. All right. So -- other 15 discussion? 16 Okay, I have a motion by Mr. Horton, second by 17 Ms. Mandel to sustain the Franchise Tax Board. 18 Without objection, that motion carries. 19 ---oOo--- 20 21 22 23 24 25 26 27 28 15 1 ITEM B18. 2 MS. OLSON: Our next item is B18, Gary Laub -- 3 Laub, excuse me. 4 MS. YEE: Yes. Item B18, Gary Laub. May I 5 have a motion, please. 6 MR. HORTON: Move to sustain the Franchise Tax 7 Board. 8 MS. YEE: Okay. 9 MS. MANDEL: Second. 10 MS. YEE: Motion by Mr. Horton to sustain the 11 Franchise Tax Board. Second by Ms. Mandel. 12 Discussion? 13 Okay, hearing none, without objection, such 14 will be the order. 15 ---oOo--- 16 17 18 19 20 21 22 23 24 25 26 27 28 16 1 ITEM B19. 2 MS. OLSON: Our next item is B19, Armadillo 3 Trading Company, Incorporated. 4 MS. YEE: Okay. Item B19, Armadillo Trading 5 Company, Incorporated. May I have a motion, please. 6 MR. HORTON: Move to sustain the Franchise Tax 7 Board. 8 MS. YEE: Okay. Motion by Mr. Horton to 9 sustain the Franchise Tax Board. Is there a second? 10 MS. MANDEL: Second. 11 MS. ALBY: Second. 12 MS. YEE: Second by Ms. Alby. 13 Discussion? Hearing none, without objection, 14 that motion carries. 15 ---oOo--- 16 17 18 19 20 21 22 23 24 25 26 27 28 17 1 ITEM B20. 2 MS. OLSON: Our next item is B20, a through k. 3 MS. YEE: Okay. So, B20 a through k, and each 4 of these -- and, Appeals, I believe each of these 5 appeals are properly before us, yes? 6 MR. THOMPSON: That's correct. 7 MS. YEE: Okay. And, let's see. Okay. 8 Is there a motion? 9 MS. MANDEL: Sustain the Franchise Tax Board 10 with the frivolous appeal penalties that -- I guess the 11 ones that were suggested in the hearing summaries. 12 MS. YEE: Okay. 13 MS. ALBY: Second. 14 MR. THOMPSON: Could I -- excuse me. 15 MS. YEE: Yes. 16 MR. THOMPSON: And also with the concessions. 17 MS. MANDEL: With -- with the concessions that 18 FTB made on the particular cases. 19 MS. YEE: Right. 20 MS. MANDEL: Which I understand it are 21 accounted for also in the level of frivolous appeals 22 penalties that you suggest. 23 MR. THOMPSON: Correct. 24 MS. YEE: Okay. Very well. So a motion by Ms. 25 Mandel to sustain the Franchise Tax Board and to impose 26 frivolous penalties in the amounts suggested by the 27 Appeals Division, with the -- incorporating the 28 concessions by the Franchise Tax Board. 18 1 Is there a second? 2 MS. ALBY: Second. 3 MS. YEE: Oh, I'm sorry, Ms. Alby seconds the 4 motion. 5 Without objection, that motion carries. 6 ---oOo--- 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 19 1 ITEM C1. 2 MS. OLSON: And our final matter for this 3 afternoon is C1, Jing Shen. 4 MS. YEE: Okay. Item C1, Jing Shen. May I have 5 a motion, please. 6 MS. STEEL: I think sustain the Department 7 recommendations but it's going to be from August 29, 8 1996 to August of 1998 when Global Light 9 Telecommunications acquired. That he's responsible for 10 that portion. 11 MS. YEE: Okay. So we have a motion by Ms. 12 Steel to adopt the Appeals staff recommendation 13 pertaining to the period -- 14 MS. STEEL: Of August 29, 1996. 15 MS. YEE: -- August 29, 1996 through August of 16 1998? 17 MS. STEEL: Yes. 18 MS. YEE: Let me see what the date was. 19 MR. LEVINE: For clarification, we've 20 recommended removing 1996. 21 MS. MANDEL: All -- all of 1996? 22 MS. YEE: All of '96, right? 23 MR. LEVINE: Right, the last three months that 24 are included. 25 MS. STEEL: Then 1997 January to August of 26 1998. 27 MS. YEE: Okay. 28 MS. ALBY: Second. 20 1 MS. STEEL: You want to hear the reason? 2 MS. YEE: Please. 3 MS. STEEL: Because they added four day-to-day 4 accounting people on the checkbook that they can sign 5 after they acquired 51 percent of this day. 6 MS. YEE: Okay. Other discussions? 7 Okay. Appeals, any other thoughts on this one? 8 MR. LEVINE: Our recommendation is as -- as 9 stated it really does come down in my view to knowledge, 10 reason to know. If he had reason to know or he knew he 11 had a duty to do something about it and if he didn't 12 know then the question is did he have a duty to know and 13 if not then he should be excused. 14 I don't know the date of the resale certificate 15 but that certainly is not good from his point of view, 16 issuing resale certificate for items that are consumed. 17 And the signing of the -- I agree that the signing of a 18 return is not always fatal, but it isn't a good -- 19 again, not a good sign for the taxpayer arguing against 20 liability. 21 MS. STEEL: But BOE was saying that day to day 22 work is most important part. But when Global Light 23 Telecommunication acquired 51 percent of it at that 24 point they already hired four more people to sign the 25 checks and gave them authority there. 26 So I think that day to day is more of those 27 people and owner of Global Light Telecommunications than 28 himself. So, that's why I'm cutting there. 21 1 I want to go into the numbers but I was totally 2 confused that what he was asking so I'm not going to 3 even figure it out those numbers. So whatever we impose 4 those taxes only the portion of that when he was 5 responsible. 6 MS. YEE: Okay. Other discussion, Members? 7 Okay, hearing none, we have a motion by Ms. Steel to 8 redetermine and this -- the motion incorporates 1996 9 year having been removed, but for the period January of 10 '97 through August of '98. 11 Please call the roll. 12 MS. OLSON: Madam Chair. 13 MS. YEE: No. 14 MS. OLSON: Ms. Alby. 15 MS. ALBY: Aye. 16 MS. OLSON: Ms. Steel. 17 MS. STEEL: Aye. 18 MS. OLSON: Mr. Horton. 19 MR. HORTON: No. 20 MS. OLSON: Ms. Mandel. 21 MS. MANDEL: No. 22 MS. OLSON: Motion fails. 23 MS. YEE: Okay. May I have another motion? 24 MS. MANDEL: Move to redetermine. 25 MS. YEE: Okay. A motion by Ms. Mandel to 26 redetermine. Is there a second? I'll second that 27 motion. 28 MR. HORTON: Yeah, second. 22 1 MS. YEE: Please call the roll. 2 MS. STEEL: But -- discussion. 3 MS. YEE: Yes, discussion, please. 4 MS. STEEL: But we really have to think about 5 there was other officers where there are two. There is 6 a Chairman. There's other CFOs. There's Controllers. 7 We're just going after one person at this corporation 8 right now and I know what Mr. Levine tried to say right 9 now that, you know, Chairman was outside of California 10 but just hold that thought. 11 I can see -- and then plus when another company 12 buys it Board of Equalization was making very clear 13 there that day-to-day person is responsible. That's the 14 only reason that they were going after Mr. Shen, not 15 other people. 16 And then when somebody else bought this 17 company, 51 percent of it, I know that day-to-day person 18 is different there so that's why I made a motion. And 19 that's why we have to go after that the other remain of 20 the years has to go after that somebody who was 21 responsible for day-to-day person. 22 MS. YEE: Okay. 23 MR. LEVINE: What I wanted to point out, it's 24 too late for anyone that hasn't already been assessed. 25 There is one person that was assessed. I don't think 26 that came before Appeals. I think that is -- the 27 Department but it's being held abeyance and I believe it 28 will come on a Board calendar for that one. 23 1 But anyone else who hasn't been assessed, even 2 if there was a smoking gun, it's too late because it's 3 been more than three years since we knew about the 4 termination. 5 MS. STEEL: But, Mr. Levine, if it's too late 6 it's our fault because we didn't go after the other 7 people. 8 Another thing is they close down on 2000 and 9 they started auditing them from 2001. So even Mr. Shen 10 left on 2000, so he didn't have a clue that he was 11 charged for this duty. 12 So, either way it's not really fair that we 13 cannot go after other people doesn't mean that we can go 14 after somebody who is innocent, just keep going and 15 asking him to pay for it. That's not really right. 16 MR. LEVINE: I agree. If you don't think he's 17 liable then he shouldn't be held liable just because 18 he's the only one the Department went after. 19 On the other hand, even if it is the 20 Department's fault if there are two people who are 21 liable and the Department assesses them and the Board 22 upholds it then there would be two people to share the 23 burden. And if the Department didn't go after one of 24 them then it's like a partnership liability, the one 25 who's -- as long as someone's responsible they're 26 going -- they're at risk for the whole thing. So that's 27 the question, if -- if he is -- if he is liable or not. 28 And if -- if not he wins. And if so, he's going to -- 24 1 I don't think he's going to have any company sharing the 2 liability. 3 MS. YEE: I have a motion by Ms. Mandel, 4 seconded by Yee to redetermine. Please call the roll. 5 MS. OLSON: Madam Chair. 6 MS. YEE: Aye. 7 MS. OLSON: Ms. Alby. 8 MS. ALBY: (Inaudible.) 9 MS. OLSON: Ms. Steel. 10 MS. STEEL: No, still not fair. 11 MS. OLSON: Horton. 12 MR. HORTON: Aye. 13 MS. OLSON: Excuse me, Mr. Horton. I'm sorry. 14 MR. HORTON: Aye. 15 MS. OLSON: I apologize. 16 MR. HORTON: Horton works. 17 MS. OLSON: I am so sorry. Ms. Mandel. 18 MR. HORTON: It's okay. 19 MS. MANDEL: Aye. 20 MS. OLSON: Ms. Alby is a no. 21 MS. YEE: Okay. Motion passes. 22 MS. OLSON: Motion fails. Excuse me, motion 23 carries. 24 MS. YEE: Okay. 25 MS. OLSON: I'm still upset. I'm still upset. 26 MS. STEEL: I think Diane's upset, too. You 27 know, same as me here. So, thank you. 28 MS. YEE: Very well. Any other matters, Ms. 25 1 Olson? 2 MS. OLSON: No, that concludes our business for 3 today. 4 MS. YEE: Okay, Members. Thank you very 5 much. 6 MR. HORTON: Are you sure? 7 MS. OLSON: My apology to Mr. Horton. 8 MS. YEE: Okay. We are recessed until 9:30 9 tomorrow morning. Thank you. 10 ---oOo--- 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 26 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 June 16, 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 26 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: June 23, 2010. 17 18 19 20 ____________________________ 21 BEVERLY D. TOMS 22 Hearing Reporter 23 24 25 26 27 28 27