1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 OCTOBER 25, 2011 9 P OTHER ADMINISTRATIVE MATTERS 10 ITEM P5.1 11 2012/13 DRAFT Budget Change Proposal 12 13 ---o0o--- 14 15 16 17 18 19 20 21 22 Reported by: Juli Price Jackson 23 No. CSR 5214 24 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 Liz Houser Deputy Director 18 Administration 19 20 21 ---oOo--- 22 23 24 25 26 27 28 2 1 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 OCTOBER 25, 2011 5 ---oOo--- 6 MR. HORTON: Ms. Olson? 7 MS. OLSON: Our next item is P5.1, 2012/13 8 Draft Budget Change Proposal. 9 MR. HORTON: Members, we have Ms. Liz Houser 10 before us, Deputy Director of Administration Department 11 to make a presentation on this. 12 MS. HOUSER: Good morning, Chairman and 13 Members. 14 MR. HORTON: Just thought I'd do that. 15 MS. HOUSER: Talking about a BCP and you want 16 me to smile. 17 I'm requesting the Board's approval of the use 18 tax nexus Budget Change Proposal. The BCP requests 28.3 19 positions and $3,180,000 to implement Assembly Bill 155. 20 This bill requires businesses engaging in 21 online sales to collect and remit sales and use tax. 22 Since this BCP is the result of enacted 23 legislation, an advance copy was sent to Finance after 24 your three-day review and is subject to the Board's 25 final approval. 26 I would be happy to answer any questions that 27 you have on this item. 28 MR. HORTON: Discussion? 3 1 Member Yee. 2 MS. YEE: Thank you. 3 I appreciate the staff reworking the positions 4 as was reflected in our discussion from last Board 5 meeting. Thank you. 6 The piece that I want to be sure doesn't get 7 lost, because we're looking at a BCP, is really as we 8 look at monitoring the federal legislation, that is 9 moving forward, that we also have staff begin to examine 10 the current state of affairs relative to California's 11 relationship, or lack thereof, to the Streamlined Sales 12 Tax Project and also, to the extent that we are going to 13 be probably more actively monitoring that particular 14 effort, as it is cited in one of the federal pieces of 15 legislation, that we also re-visit the governance model 16 that was enacted in statute for California's policy 17 input into the Streamlined Sales Tax project. 18 And I'm specifically referring to this Board of 19 Governance that is still in statute. 20 MS. MANDEL: The -- yeah, the Board of -- the 21 Board of Governance that does not, at this time, have a 22 full complement of -- 23 MS. YEE: Exactly. 24 MS. MANDEL: -- members probably. 25 MS. YEE: Exactly. 26 MS. MANDEL: So, perhaps, the -- Mr. Horton and 27 I could -- 28 MR. HORTON: Yeah. 4 1 MS. YEE: Yeah. 2 MS. MANDEL: -- since we're the remaining -- 3 the complement. 4 MS. YEE: Right. 5 MR. HORTON: Yep, we are. 6 MS. YEE: So -- and perhaps this is a 7 Legislative Committee discussion, Mr. Horton? 8 MR. HORTON: Yes. 9 MS. YEE: May I put it on you? Okay. 10 MR. HORTON: Sure. 11 MS. YEE: I just want to be sure that if we are 12 going to be expected to weigh in on federal legislation 13 that we're not, unintended, bogged down by the BOG, the 14 Board of Governance, that's required in statute for how 15 California provides its policy input. 16 MS. HOUSER: I'll be sure to share that with 17 Miss Shedd. 18 And I'm sure she's listening today also. So, 19 I'll be sure to share with her and have that brought 20 before -- 21 MS. YEE: Okay. 22 MS. HOUSER: -- Leg Committee in November. 23 MS. YEE: Okay, thank you. 24 MR. HORTON: Let's set up a separate meeting. 25 And it seems to me that we need to have a report to the 26 Board prior to December, so -- 27 MS. YEE: Yeah. 28 MR. HORTON: -- let's -- knowing that Ms. Shedd 5 1 is listening, I look forward to an opportunity to meet 2 with her so that we can develop some -- 3 MR. RUNNER: I'm sure she is. 4 MR. HORTON: -- strategies on moving forward, 5 action plans and see what we can get some information to 6 the Board or a process by which we -- we keep the Board 7 informed on a ongoing basis, in that our interaction may 8 not be consistent with our meeting times and our need to 9 interact may not be consistent with our meeting times as 10 this legislation goes forward. 11 MS. YEE: Yeah. And I think, Mr. Chairman, 12 this might be a good opportunity just to re-visit that 13 whole governance structure -- 14 MR. HORTON: Yes. 15 MS. YEE: -- for California's relationship with 16 the SSTP, so -- 17 MR. HORTON: Yes. 18 MS. YEE: -- okay. 19 MR. HORTON: Yeah, okay. 20 Further discussion, Members? 21 Thank you very much. 22 MS. HOUSER: I need a motion. 23 MR. HORTON: Next item? 24 MS. YEE: Oh, I'll move -- 25 MR. HORTON: You need a motion? 26 Moved by Member Yee, second by Mr. Runner. 27 Without objection, Members, such will be the 28 order. 6 1 MS. HOUSER: Thank you. 2 ---o0o--- 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 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 OCTOBER 25, 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 pages 1 13 through 7 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: NOVEMBER 7, 2011 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 8