1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 AUGUST 25, 2010 10 11 12 13 14 15 FINAL ACTIONS 16 17 18 19 20 21 22 23 REPORTED BY: JULI PRICE JACKSON 24 CSR NO. 5214 25 26 27 28 1 1 P R E S E N T 2 3 For The Board Betty T. Yee of Equalization: Chair 4 Jerome E. Horton 5 Vice-Chair 6 Barbara Alby Acting Member 7 Michelle Steel 8 Member 9 Marcy Jo Mandel Appearing for John Chiang 10 State Controller (per Government Code 11 Section 7.9) 12 Diane G. Olson Chief, Board 13 Proceedings Division 14 15 ---OOO--- 16 17 18 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 AUGUST 25, 2010 4 ---o0o--- 5 C1 GRIMMWAY ENTERPRISES, INC. 6 No. 379508, 379965 (AR) 7 ---o0o--- 8 MS. YEE: Okay, the first item we've taken 9 under submission today is item C!, Grimmway Enterprises, 10 do we have a motion, please? 11 MS. STEEL: Grant the petition. 12 MS. YEE: We have a motion by Ms. Steel to 13 grant the petition. 14 Is there a second. 15 MR. HORTON: Second by Mr. Horton. 16 Discussion? 17 MS. ALBY: What's the motion? 18 MS. YEE: Grant the petition. 19 MS. ALBY: On Grimmway? 20 MS. YEE: Yes. 21 MS. ALBY: Okay. 22 MS. YEE: All right, no discussion? 23 Without objection, the petition is granted. 24 ---o0o--- 25 26 27 28 3 1 C2 MAIN STREET CALIFORNIA, INC.. 2 NO. 224746 (OH) 3 ---o0o--- 4 MS. YEE: Next item? 5 MS. OLSON: Our next item is C2, Main Street 6 California, Incorporated. 7 MS. YEE: Okay, item C2, Main Street 8 California, Incorporated. 9 May I have a motion, please. 10 MR. HORTON: Move to adopt staff 11 recommendation. 12 MS. YEE: Motion by Mr. Horton to adopt the 13 staff recommendation. 14 Is there a second? 15 MS. STEEL: Can I -- 16 MS. YEE: Let me have Ms. Mandel second. 17 Ms. Steel? 18 MS. STEEL: Can we add Offer In Compromise? 19 When they own business still that we can send 20 them to Offer in Compromise? 21 MS. YEE: We can, although on this this one, 22 there was a -- 23 MS. STEEL: Interest, right, performed -- that 24 taxpayer brought in the Board of Equalization form that 25 somebody -- 26 MS. MANDEL: Wait, we need that answer again 27 about continuing businesses and collecting sales tax. 28 MS. SWANSON: Cynthia Swanson again with Offers 4 1 In Compromise. 2 They would qualify for the the program. It's a 3 closed out, no tax reimbursement. 4 Oh, I'm sorry -- 5 MR. LEVINE: They didn't collect reimbursement, 6 on my understanding. 7 MS. MANDEL: Okay. 8 MR. LEVINE: And I assume that if -- 9 MS. MANDEL: I just -- 10 MR. LEVINE: -- they were going to accept the 11 Offer In Compromise, that's one thing I assume the 12 program would confirm. 13 MS. MANDEL: Right. 14 MR. LEVINE: But, my understanding -- 15 MS. MANDEL: My eyebrows were more -- I didn't 16 realize it was a closed out business. 17 MR. LEVINE: They said that they were 18 collecting now. 19 But my understanding is that they didn't. 20 MS. MANDEL: Right, I thought I heard her say 21 they were a closed out business, but it's been long day. 22 MR. LEVINE: I don't think they're closed out. 23 MS. YEE: I thought they were still operating 24 the chain of restaurants. 25 MS. SWANSON: I'm sorry, are we talking -- 26 MS. YEE: Main Street California, item C2. 27 MS. SWANSON: I had they were closed out. 28 MR. HORTON: Okay. 5 1 MR. LEVINE: Well, again, that's something we 2 have to figure out. 3 MS. STEEL: Are we doing C2? 4 MR. LEVINE: I think there were some franchises 5 of T. G. I. F. that -- 6 MS. MANDEL: But they didn't have all of the 7 franchises -- 8 MR. LEVINE: I don't think it was -- 9 MS. MANDEL: -- in the state. 10 MR. LEVINE: -- the main company. 11 MS. STEEL: Oh, no, you know what? I was 12 looking at C4. I am sorry that -- 13 MR. HORTON: So, we're okay? 14 MS. STEEL: No, I'm not okay with that. 15 MS. YEE: Okay. So, item C2, this is Main 16 Street California, Incorporated, we have a motion by 17 Mr. Horton, second by Ms. Mandel. 18 Ms. Steel wanted to consider the Offer In 19 Compromise program, but let's -- 20 MS. STEEL: No, no, not for Offer In 21 Compromise. 22 MS. YEE: Okay. 23 MS. STEEL: And C4 is the Offer In Compromise. 24 MS. YEE: All right, gotcha. 25 MS. STEEL: Sorry about that. 26 MS. YEE: All right. So, just the motion 27 straight up, right? 28 MS. STEEL: Right. 6 1 MS. YEE: Adopt staff recommendation? 2 MS. STEEL: Right, but -- 3 MS. YEE: Discussion? 4 MS. STEEL: You know, I am looking at the 5 policy here that they have to check -- the manager has 6 to, you know, have to check with the guest first. 7 So, even that they have 15 percent of tips on 8 the menu, still that their procedure itself is that they 9 have to ask customer first before they put tips on it. 10 So, it has to be optional. So, I object. 11 MS. YEE: Okay, any other discussion? 12 Please call the roll. 13 MS. OLSON: Madam Chair? 14 MS. YEE: Aye. 15 MS. OLSON: Ms. Alby? 16 MS. ALBY: Aye. 17 MS. OLSON: Ms. Steel? 18 MS. STEEL: No. 19 MS. OLSON: Mr. Horton? 20 MR. HORTON: Aye. 21 MS. OLSON: Ms. Mandel? 22 MS. MANDEL: Aye. 23 MS. OLSON: Motion carries. 24 ---o0o--- 25 26 27 28 7 1 MS. YEE: Next item, please? 2 ---o0o--- 3 C4 EUGENIA D. VALDEZ 4 NO. 482782 (KH) 5 ---o0o--- 6 MS. OLSON: Our next item is C4, Eugenia D. 7 Valdez. 8 MS. YEE: Okay, item C4, Eugenia D. Valdez. 9 May I have a motion? 10 MR. HORTON: Move to adopt staff 11 recommendation. 12 MS. YEE: Okay, motion by Mr. Horton to adopt 13 the staff recommendation. 14 Is there a second? 15 MS. MANDEL: Second. 16 MS. YEE: Second by Ms. Mandel. 17 Discussion? 18 MS. STEEL: This is the one that Offer In 19 Compromise. 20 MS. YEE: Okay. 21 MR. LEVINE: I believe -- and again I'm not 22 certain -- but I believe in this case she did collect 23 reimbursement. 24 MS. YEE: Yeah. 25 MR. LEVINE: She was paid reimbursement by the 26 card lock company that coordinates these transactions. 27 But, again, if she applied for Offer In 28 Compromise, that would be something she'd have to 8 1 establish. 2 MS. SWANSON: With the open active program, she 3 wouldn't qualify if there was tax reimbursement. 4 MS YEE: Right. 5 Okay, well, let's at least consider maybe 6 offering a payment plan. 7 Okay. 8 MS. STEEL: I can do that. 9 MS. YEE: All right. So, we have a motion by 10 Mr. Horton, second my Ms. Mandel to adopt the staff 11 recommendation and to direct staff to consider a 12 generous payment plan for the Petitioner. 13 Please call the -- no objection? 14 MS. STEEL: No objection. 15 MS. YEE: Okay. Such will be the order. 16 ---o0o--- 17 18 19 20 21 22 23 24 25 26 27 28 9 1 MS. YEE: Next item? 2 C6 JEN KUBALA AND SHARON STENCIL 3 NO. 473195 (KH) 4 ---o0o--- 5 MS. OLSON: Our item is C6, Jan Kubala and 6 Sharon Stencil. 7 MS. YEE: Okay, item C6, Jen Kubala and Sharon 8 Stencil. 9 May I have a motion, please? 10 MR. HORTON: Move to adopt staff 11 recommendation. 12 MS. YEE: Motion by Mr. Horton to adopt the 13 staff recommendation. 14 Is there a second? 15 MS. MANDEL: Second. 16 MS. YEE: Second by Ms. Mandel. I think we 17 talked about Offer In Compromise here for -- yes. 18 MS. STEEL: Yes. 19 MS. YEE: Okay. So, motion by Mr. Horton, 20 second by Ms. Mandel to adopt staff recommendation, 21 direct staff to speak to Petitioner regarding the Offer 22 In Compromise program application. 23 Without objection, that motion carries. 24 ---o0o--- 25 26 27 28 10 1 . 2 REPORTER'S CERTIFICATE 3 4 State of California ) 5 ) ss 6 County of Sacramento ) 7 8 I, JULI PRICE JACKSON, Hearing Reporter for the 9 California State Board of Equalization certify that on 10 AUGUST 25, 2010 I recorded verbatim, in shorthand, to 11 the best of my ability, the proceedings in the 12 above-entitled hearing; that I transcribed the shorthand 13 writing into typewriting; and that the preceding pages 1 14 through 10 constitute a complete and accurate 15 transcription of the shorthand writing. 16 17 Dated: AUGUST 29, 2010 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 11