BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT FEBRUARY 22, 2011 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 Jerome E. Horton of Equalization: Chairman 5 Michelle Steel 6 Vice-Chairwoman 7 Betty T. Yee Member 8 George Runner 9 Member 10 Marcy Jo Mandel Appearing for John Chiang 11 State Controller (per Government Code 12 Section 7.9) 13 Diane Olson, Chief Board Proceedings Division 14 Board of Equalization 15 Staff: Bradley Heller Legal Department 16 17 --oOo--- 18 19 20 21 22 23 24 25 26 27 28 2 1 Sacramento, California 2 February 22, 2011 3 ---oOO--- 4 MR. HORTON: Next item. 5 MS. OLSON: Okay, our next item is J1, Proposed 6 Amendments to Regulation 6001, General Provisions. 7 MR. HORTON: Discussion, Members? 8 Okay, why don't we hear -- 9 MS. OLSON: This is Mr. Heller. 10 MR. HORTON: -- from Mr. Heller on this. 11 MR. HELLER: Good afternoon, Chairman Horton, 12 Members of the Board. I'm Bradley Heller from the 13 Board's Legal Department. And I'm here to request the 14 Board's authorization to begin the formal rulemaking 15 process to -- to amend Appendices A and B to Regulation 16 6001 which contain portions of the Board's conflict of 17 interest code. 18 The proposed amendments to Appendix A update 19 the list of Board positions that make decisions or 20 advise -- advise or make recommendations to 21 decision-makers directly or without significant 22 intervening substantive review, and update the 23 disclosure categories assigned to the listed positions 24 in order to reflect changes in the Board's positions and 25 organizational structure since the code was last 26 amended. 27 The proposed amendments to Appendix B update a 28 few of the Board's disclosure categories to incorporate 3 1 suggestions from the staff at the Fair Political 2 Practices Commission or FPPC. 3 Although the materials for today are pretty 4 voluminous, the materials only include the draft notice 5 of intention to amend the Board's conflict of interest 6 code, the text of the proposed amendments to Appendices 7 A and B, the Board's complete organizational chart, 8 which is almost 500 pages long, descriptions of all the 9 Board's job classifications, which itself is about 300 10 pages long, and then a time line showing the FPPC 11 rulemaking process. 12 If the Board authorizes staff to begin the 13 formal rulemaking process today, staff will file the 14 notice with -- with the Office of Administrative Law so 15 that OAL can publish the notice in the California Notice 16 Register, will then file the notice with the Fair 17 Political Practices Commission and then distribute the 18 notice to interested parties and affected Board 19 employees, and this will commence a 60-day public 20 comment period which will conclude with when the Board 21 conducts a public hearing at -- which we tentatively 22 have scheduled for the Board's May meeting. 23 If the Board has any questions about the 24 proposed amendments I can definitely help answer those 25 today. 26 MR. HORTON: Well, point of clarification, 27 could you read those 300 pages. 28 MR. HELLER: I -- I certainly can if you -- 4 1 MR. RUNNER: Maybe you can do that -- 2 MR. HELLER: -- have time. 3 MR. RUNNER: -- after the meeting with -- 4 MR. HELLER: And I actually have read -- 5 MR. RUNNER: -- Horton. 6 MR. HORTON: We read the -- we read it. 7 Thank you, just kidding. 8 Discussion, Members? 9 Is there a motion, Members? 10 Authorize publication? 11 MS. YEE: Yes, I'll so move. 12 MR. HORTON: It's been moved to authorize 13 publication by Ms. Yee, second by Mr. Runner. 14 Without objection, such will be the order. 15 MR. HELLER: Thank you. 16 MR. HORTON: Thank you very much, Mr. Heller. 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 5 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 February 22, 2011 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 5 pages 13 constitute a complete and accurate transcription of the 14 shorthand writing. 15 16 Dated: March 2, 2011. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 6