1       BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                         450 N STREET

            3                    SACRAMENTO, CALIFORNIA

            4   

            5   

            6   

            7                     REPORTER'S TRANSCRIPT

            8                       NOVEMBER 15, 2011

            9   

           10           ITEM H2 FRANCHISE AND INCOME TAX MATTERS

           11   

           12   

           13   

           14   

           15   

           16   

           17   

           18   

           19                     Reported by:  Juli Price Jackson 

           20                                   No. CSR 5214

           21   

           22   

           23   

           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   

           18   

           19                           ---oOo---

           20   

           21   

           22   

           23                 

           24   

           25   

           26   

           27   

           28                          




                                                                      2




                                                                       


            1                                   450 N STREET

            2                                   SACRAMENTO, CALIFORNIA 

            3                                   NOVEMBER 15, 2011

            4                           ---oOo---

            5            MS. OLSON:  Our next item is H2, Franchise and 

            6   Income Tax Matters.  These matters can be voted upon 

            7   separately.  

            8            MR. HORTON:  Pleasure of the Board.  

            9            MS. MANDEL:  Take item 4 separately.  

           10            MR. HORTON:  So noted by Member Mandel, Member 

           11   Steel, take item 4 separately.

           12            Members, is there a motion on H2.1, H2.2 and 

           13   H2.3?

           14            MS. YEE:  Move to sustain the Franchise Tax 

           15   Board.

           16            MR. HORTON:  Motion to sustain Franchise Tax 

           17   Board.  

           18            MS. STEEL:  Second.

           19            MR. HORTON:  Is there a second?

           20            MS. STEEL:  Second.  

           21            MR. HORTON:  Second by Member Steel.         

           22            Objection? 

           23            Hearing none, such will be the order.  

           24            Members, we are now on H2-4, discussion?  

           25            MS. MANDEL:  I would move to grant the 

           26   rehearing on the possibility that there may have been -- 

           27   may have been an error in law, particularly potentially 

           28   with respect to consideration of some the underlying 




                                                                      3




                                                                       


            1   facts as to percentage interest that carried through.  

            2            But, you know, everybody has their own 

            3   standpoint, but a potential error of law.  So, I'd grant 

            4   a rehearing.

            5            MR. HORTON:  Motion to grant, potential error 

            6   of law by Member Mandel.  Second by Member Steel.     

            7            Objection, Members?  

            8            Hearing none, such will be the order.  

            9                           ---o0o---

           10   

           11   

           12   

           13   

           14   

           15   

           16   

           17   

           18   

           19   

           20   

           21   

           22   

           23   

           24   

           25   

           26   

           27   

           28   





                                                                      4




                                                                       


            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   NOVEMBER 15, 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 4 constitute a complete and accurate 

           14   transcription of the shorthand writing.

           15   

           16   Dated:  January 17, 2012

           17   

           18   

           19                          ____________________________

           20                          JULI PRICE JACKSON

           21                          Hearing Reporter

           22                             

           23                             

           24                               

           25            

           26            

           27            

           28            




                                                                      5