1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 MARCH 21, 2012 10 11 12 13 14 15 ITEM P OTHER ADMINISTRATIVE MATTERS 16 ITEM P1 EXECUTIVE DIRECTOR'S REPORT 17 1. CROS PROJECT UPDATE AND ACTIONS 18 19 20 21 22 23 24 25 26 27 REPORTED BY: Kathleen Skidgel 28 CSR NO. 9039 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 Government Code 13 Section 7.9) 14 Diane G. Olson 15 Chief Board Proceedings Division 16 17 For the Staff: Eric Steen CROS Project Director 18 19 ---oOo--- 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MARCH 21, 2012 4 ---oOo--- 5 MS. OLSON: Our next item is P1.1, CROS Project 6 Update and Actions. 7 MR. HORTON: Okay. As they come, um -- CROS 8 Project and Actions. 9 Uh, we're going to put this item over and we'll 10 take it up, uh -- uh, soon. 11 (Whereupon a break from the matter was had.) 12 MR. HORTON: Members, we will return to P1.1, 13 CROS Project Update and Actions where Mr. Eric Steen 14 will make a presentation. 15 MR. STEEN: Thank you. Mr. Chairman, Honorable 16 Members, Eric Steen, CROS Project Director. 17 My privilege to provide you an update on the 18 CROS Project this afternoon. We are 68 percent complete 19 with the RFP and on schedule to -- on schedule to 20 deliver a draft of that to the vendor community in July 21 of this year. 22 We are also working on the Special Project 23 Report which highlights the -- the change in our funding 24 strategy and the parallel initiatives which differ from 25 what was outlined within the FSR. 26 We've submitted a draft to the CTA and we 27 anticipate providing a final copy, a signed copy, either 28 late this week or early next week. 3 1 We've also been, uh, continuing to interact 2 with the control agencies. DGS has formally signed our 3 ITPP, and we have a kick-off meeting with them on the 4 27th of this month. And we are also in the process of 5 contracting with the CTA for oversight. I believe the 6 paperwork is in procurement as we speak. 7 We're moving forward with the initiatives which 8 addresses data conversion and our ability to share data 9 with external agencies, in particular file -- FTB and 10 EDD. And we've built a team; we're continuing to build 11 that team. We've established environments. We have a 12 schedule. And we're doing some resource planning. And 13 we're making, uh -- uh, headway there. And we have good 14 momentum. 15 We've also introduced, uh -- we're introducing 16 new technologies to the BOE, which is in line with TSD's 17 road map for the future. 18 And then I'd like to also address a few things 19 related to project communication because that's 20 partly -- that's part of my responsibility. So I just 21 want to highlight a few items. 22 I've presented at the Fed State Tax Partnership 23 at Franchise Tax Board regarding CROS. Um, I also 24 presented at the SUTD Administrators and Principals 25 Meeting in San Jose. I was also introduced at the 26 Professional Development Day at CSU Los Angeles. 27 And then one of the things that we've done is 28 we've taken a section of the RFP, section four, which 4 1 outlines the vision of CROS. We've turned that into a 2 presentation. We've delivered that to the managers here 3 in SUTD and Property and Special Taxes, as well as TSD. 4 And we do that, in part, to elicit feedback and to 5 validate the vision of CROS so that when that goes out 6 as part of the RFP to the vendor community, it really 7 expresses the vision that we have for the CROS solution. 8 And so that's been, I feel, very helpful in 9 terms of communicating what CROS is, its vision. And 10 we've also crafted a brochure that many of you received. 11 And for those of you who haven't, I'll make sure you get 12 a copy right away. 13 Thus concludes my update on CROS Project. I'm 14 happy to answer any questions that you may have. 15 MR. HORTON: Discussion, Members? 16 Hearing none, um, I -- I do want to share that 17 we've seen a couple of brochures that have been 18 developed, uh, absent the input of the Board Members. 19 I want to encourage staff to have those 20 brochures, have the Members -- provide the Members an 21 opportunity to review those brochures before they go out 22 into the general public. 23 The -- the other -- I just want to share, and I 24 think I've articulated this to Eric, is that I'm very 25 concerned about the revenue lists and us being able to 26 adequately define those in a way. Um, sooner or later 27 that's going to be the primary issue, is the revenue 28 lists as they relate to the program. 5 1 So, certainly look forward to hearing more 2 about those. 3 Thank you. Thank you very much. 4 MR. STEEN: Thank you. 5 ---oOo--- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, KATHLEEN SKIDGEL, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 March 21, 2012 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 6 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: April 3, 2012 17 18 19 ____________________________ 20 KATHLEEN SKIDGEL, CSR #9039 21 Hearing Reporter 22 23 24 25 26 27 28 7