1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MAY 25, 2011 9 ITEM P OTHER ADMINISTRATIVE MATTERS 10 5.1 ADMINISTRATION DEPUTY DIRECTOR'S REPORT 11 CONTRACT OVER $1 MILLION 12 13 ---o0o--- 14 15 16 17 18 19 20 21 22 23 Reported by: Juli Price Jackson 24 No. CSR 5214 25 26 27 28 1 1 P R E S E N T 2 3 For the Board Jerome E. Horton of Equalization: Chairman 4 5 Michelle Steel Vice-Chairwoman 6 7 Betty T. Yee Member 8 9 George Runner Member 10 11 Marcy Jo Mandel Appearing for John 12 Chiang, State Controller (per 13 Government Code Section 7.9) 14 15 Diane G. Olson Chief, Board 16 Proceedings Division 17 18 Liz Houser Deputy Director 19 Administration 20 21 ---oOo--- 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 25, 2011 4 ---oOo--- 5 MR. HORTON: Ms. Olson? 6 MS. OLSON: Our next item is P5.1. 7 MR. HORTON: Thank you, Ms. Mandel. 8 MS. OLSON: Contracts over $1 million. 9 MS. HOUSER: Good afternoon, Chairman Horton 10 and Members. I'm Liz Houser, Deputy Director, 11 Administration. 12 My first item is a request for the Board 13 approval of a contract over $1 million. The contract is 14 a renewal of our interagency agreement with the 15 Department of Motor Vehicles to provide services to 16 collect sales and use tax on the exchange of vehicles. 17 It is consistent with prior agreements. 18 The total amount for the '11-'12 fiscal year is 19 $6,825,000. The annual estimated revenue collected from 20 this effort is approximately 485 million. 21 If it pleases the Board, I would ask for your 22 vote of approval to enter into this contract. 23 MR. HORTON: Is there a motion, Members? 24 MS. YEE: I'll move, but I have a question. 25 MR. HORTON: Move for a discussion, second for 26 discussion person (verbatim) by Ms. Steel. 27 Member Yee? 28 MS. YEE: We see this contract periodically, 3 1 which is fine, I guess. Maybe at an upcoming meeting -- 2 I just want to know how we're doing relative to these 3 costs and be able to understand a little bit better what 4 improvements are being made on the DMV end that actually 5 is helping to facilitate better collection. 6 I mean, we've been -- I think there's been a 7 lot of interest in this area with respect to auto 8 dealerships, used car dealerships. And I just want to 9 be sure that there are continuing to be improvements 10 made that will help facilitate enhanced collections. 11 MS. HOUSER: There is a task force that has 12 been formed and we can ask for -- someone from -- our 13 lead person from that task force to come and make a 14 presentation at a future Board meeting. 15 MS. YEE: Yeah, I would love that. 16 MS. HOUSER: Okay. 17 MS. YEE: Thank you. 18 MR. HORTON: Further discussion, Members? 19 Mr. Runner? 20 MR. RUNNER: On a broader discussion, not so 21 much in regards to this particular issue, but, again, 22 we've been in conversations about contracts -- about 23 contracts. 24 And again this is before us because it's a 25 contract that's more than $1 million. I have 26 concerns -- and I guess I'll express this to the Board, 27 we're having conversations right now with the -- with 28 both Ms. Houser and also the Executive Director -- in 4 1 regard to this process and procedures on contracts. 2 You know, the idea that somehow contracts below 3 $1 million, which represents a lot of money, somehow are 4 done without the Board seeing those is a bit of concern. 5 So, I've asked -- we're having some meetings 6 right now kind of seeing what the procedure is, how do 7 those happen, what the -- what the approval process 8 is -- in order to kind of get our hands around that. 9 So, I appreciate the cooperation that -- that 10 we're getting on that. And I'm sure it may end up being 11 a discussion that we may have at a future date, but 12 that's -- that's a conversation, at least, I would like 13 you to know we're having right now. 14 MR. HORTON: Further discussion? 15 There's a motion on the table to adopt for 16 purposes of discussion. 17 Objection, Members? 18 Hearing none, such will be the order. 19 ---o0o--- 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, JULI PRICE JACKSON, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 MAY 25, 2011 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 5 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: June 6, 2011 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 6