1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 REPORTER'S TRANSCRIPT 8 MAY 30, 2012 9 10 LEGISLATIVE COMMITTEE 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 2 P R E S E N T 3 4 For the Board Jerome E. Horton of Equalization: Chairman 5 6 Betty T. Yee Member 7 8 George Runner Member 9 Michelle Steel 10 Member 11 Marcy Jo Mandel Appearing for John 12 Chiang, State Controller (per Government Code 13 Section 7.9) 14 Joann Richmond Chief, Board 15 Proceedings Division 16 17 For Staff: Randy Ferris Chief Counsel 18 Robert Ingenito 19 Acting Chief, Legislative and Research Division 20 21 ---oOo--- 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 30, 2012 4 ---oOo--- 5 MR. HORTON: Let us reconvene the meeting of 6 the Board of Equalization. 7 Ms. Richmond, what is our next item? 8 MS. RICHMOND: Our next item on today's agenda 9 is the Legislative Committee. Mr. Horton is the Chair 10 of that committee. 11 Mr. Horton? 12 MR. HORTON: Thank you, Ms. Richmond. 13 Let us call the Legislative Committee to order. 14 Mr. Ingenito, would you please introduce the 15 items -- the item? 16 MR. INGENITO: Yes, sir. Good morning, 17 Chairman Horton, Members of the Board. 18 My name is Robert Ingenito and for nearly four 19 years I've been appearing before you from time to time 20 as the Chief of your Research and Statistics Section. 21 Today in my inaugural presentation to you as an 22 Acting Chief of the larger division that contains the 23 Research and Statistics Section. 24 So, on our agenda today is an overview of the 25 Division and also a discussion of legislative practices. 26 And we'll get into that as I go through my presentation. 27 Before I do anything else, I'd like to publicly 28 thank Margaret Shedd for both her 30 plus years of 3 1 service to the Board, as well as her mentoring to me. I 2 learned a lot from Margaret in the four years that I've 3 worked with her. And I hope to put that knowledge to 4 work in leading the division for the time being. 5 The next thing Id like to do for you is provide 6 an overview of what the Research and Statistics Section 7 does, as well as the Legislative Section, because a lot 8 of the work the division does, actually, is not 9 information that hits your radar screen on a regular 10 basis because it doesn't actually show up in the Board 11 meetings, except for the rates that you have to adopt 12 from time to time. 13 The Research and Statistics Section is 14 basically your information warehouse. They prepare and 15 recommend all of the various tax rates and related 16 actions for your consideration and adoption at various 17 Board meetings throughout the year. 18 Examples run the gamut from the mundane timber 19 tax rate, which hasn't changed from 2.9 percent in over 20 thirty years, to the fuel tax duties, which were placed 21 on you by the legislative about two years ago. 22 Secondly, the Research and Statistics Section 23 uses its expertise to assist other divisions within the 24 Board to perform their workload. 25 This is particularly true with respect to 26 property tax related work. Research and Statistics 27 staff have extensive expertise with respect to working 28 with property data roll files from the counties and 4 1 pulling a representative sample, through which our staff 2 determine whether County assessors are consistent in 3 their assessment of properties at the local levels when 4 we survey counties from time to time. 5 Third, the Research and Statistics Section 6 prepares and publishes the breakdown of taxable sales 7 activity by type of business and jurisdiction. For 8 every calendar quarter, our staff actually breaks down 9 the data into over 35,000 different co-ports. There is 10 that many different types of businesses and that many 11 geographic entities. And scrubbing that data is a major 12 effort of the Research and Statistics side of the shop. 13 And, what's important about this is that this 14 is the only source of information for California taxable 15 sales. And it's used by policy makers, budget writers 16 and academia. And we're asked for it all the time. 17 Finally, in addition to the scheduled and 18 routine responsibilities, which actually includes the 19 statistical appendices of the annual report, the 20 Research and Statistics Section is regularly called upon 21 to provide special studies. 22 Examples here include estimates of the size and 23 revenue loss from the underground economy, estimates of 24 revenues not collected from internet purchases and 25 estimates of cigarette tax evasion. 26 On the leg. side of the shop we do all of the 27 things a traditional legislative section does. In this 28 case we follow -- in this year -- 121 bills currently 5 1 just for 2012. We've released 54 specific bill analyses 2 and have another five are currently undergoing the 3 review process. 4 Additionally, the Board is sponsoring 15 5 different proposals in 12 different bills in 2012. Six 6 of those have cleared the Appropriations Committees 7 within the last week or so and continue to move their 8 way through the legislative process, which means they're 9 being voted on by their houses of origin this week. 10 Additionally, legislative section staff assist 11 the authors of every Board-sponsored bill in presenting 12 and testifying on behalf of the Board in every Senate 13 and Assembly policy and fiscal committee that hear the 14 bills. 15 Finally, I'd like to give you some information 16 related to how we keep your offices apprised with 17 respect to legislation and legislative developments. 18 The Division has developed a database of all 19 bills that we follow. This database actually includes, 20 on regular basis, the descriptions of every bill, the 21 last date the bill was amended, the current location of 22 each bill in the legislature, a record of any BOE 23 analyses that have been prepared and released and a 24 record of BOE letters of opposition and support. This 25 information is available to your offices any time you 26 ask. It's something that we maintain just on ready in 27 case your offices need to know. 28 And then, finally, the moment I became Acting 6 1 Chief of the Division, I made a point of pulling the 2 position's duty statement. It's right here 3 (indicating). 4 And the very first thing on the duty statement 5 is a reference to developing positive relationships with 6 the legislature. One key way the Division has worked to 7 achieve this is by accommodating the legislature to 8 provide revenue estimates and technical assistance in an 9 expedited fashion. 10 Generally these are updates to routine 11 information that is contained either in our annual 12 report or in previous bill analyses. This is 13 information that is a sent directly to the requester. 14 This is our historical practice and will continue to be 15 so going forward. 16 However, occasionally there are requests that 17 we deem to be significant, in which case we would 18 provide your offices the opportunity to review the 19 information prior to releasing it. 20 For this purpose, consistent with the Board's 21 Administration Manual, we interpret "significant" to 22 mean information that is intended to be publicly 23 attributed to the BOE by the requester or that may 24 impact a Board-sponsored bill, a Board Member-sponsored 25 bill or the BOE's budget. 26 That phrase is not interpreted to include 27 routine, sort of day-to-day requests for background 28 information and technical assistance related to other 7 1 legislative matters. 2 So, in summary, your Legislative and Research 3 Division is an information resource to you and to your 4 offices, to the legislature and to a variety of other 5 stakeholders as well. 6 Across the entire division, your staff is 7 dedicated and very technically skilled. And I'm 8 grateful for the opportunity to work with them and to 9 learn from them. 10 Ensuring that we meet your expectations is a 11 key objective of our division and we look forward to 12 receiving your input and your direction. 13 That concludes my report. I'd be happy to 14 answer any questions you may have. 15 MR. HORTON: Thank you. 16 Discussion, Members? Member Yee. 17 MS. YEE: Thank you, Mr. Chairman. Thank you, 18 Mr. Ingenito for the overview. And thank you for 19 stepping up and acting as the Interim Chief. 20 Thank you, Mr. Chairman, for agendizing this 21 item. I wanted to have a public discussion about this 22 to some extent because I was a little concerned about 23 some of the terms that were used in a memo that was 24 issued recently. 25 And I don't know the extent of the distribution 26 of the memo, but there were some terms in the memo that 27 spoke to what types of legislative context would be 28 subject to the daily report that would be provided to 8 1 the Board Members. 2 And I think -- is everyone aware of that memo? 3 Okay. I don't know how widely it was distributed, but I 4 think it has been shared fairly widely, I'm not sure by 5 whom. But I received a number of calls from legislative 6 offices and from both leaders of the legislature with 7 some concern about -- and I'm going to speak also as 8 someone who has been on the receiving end of the 9 terrific technical expertise that we have in this 10 organization. And we have tremendous resources within 11 our Legislative Division, our Research and Statistics 12 Division and that I believe are go-to resources by not 13 only the legislature and the administration, but also 14 local governments as well. And I just want to be sure 15 that -- in terms of what's includable on these daily 16 reports, that we don't inadvertently put a chill on our 17 relationship with those parties with respect to any 18 information that we're providing that may be part of a 19 confidential deliberative process. 20 And we didn't talk about the administration in 21 this memo, but certainly when I used to do budgets for 22 the Governor, a prior Governor, it is a resource that we 23 depended upon significantly and we expected that the 24 engagement was going to be kept confidential until the 25 release of the Governor's budget. 26 Similar requests could come from the 27 legislative leadership or Chairs of the Budget Committee 28 and -- as part of its deliberative process in developing 9 1 budget proposals. 2 And I didn't -- I was just unclear in terms of 3 what constituted "significant legislative matters" and 4 the concern with respect to the calls that I've been 5 receiving is exactly that. 6 If we are in the process of developing a 7 proposal for which we require some technical expertise 8 and in the past the Board has always provided, is that 9 something that is going to be disclosed to the Members 10 of your Board and, even though it may be confidential, 11 is it subject to scrutiny before it's ready for public 12 consumption? 13 So, that's really the concern that I want to 14 address. And I don't -- I just want to be sure the 15 expectations are clear for our staff. 16 And part of the reason I wanted to have this 17 conversation publicly is I couldn't tell from the memo 18 whether we were memorializing the existing practice or 19 whether we're actually developing something new. 20 And there was a line in the memo that suggested 21 that we are recently beginning to implement the 22 following, so, that just raised a doubt in my mind. 23 MR. HORTON: Okay. Further discussion, 24 Members? Mr. Runner. 25 MR. RUNNER: Just a quick question. Just to 26 clarify on that a little bit, the phrase that you used 27 there in regards to the -- the daily report or the 28 legislative report back to Members, just to clarify, 10 1 that is -- that is -- that was to inform, not to seek 2 permission, correct? 3 I mean, that is to -- that is to give 4 information about requests that came in, not seeking, 5 somehow, a -- an approval process by Members to give 6 that information? 7 Is that -- I mean, that certainly is my -- 8 my -- my thought of what it is that we should be doing. 9 I think we should be incredibly transparent with any 10 information and be helpful to -- to whether it's -- 11 whether it's the legislature, the administration, the 12 FTB -- whoever it is. 13 And I would -- I think for me, as a Board 14 Member, what I want to know is what has been asked for, 15 so that we're aware of it. But certainly I don't 16 believe that there should be a seeking of permission to 17 give it. 18 MS. YEE: Yeah, and I -- 19 MR. RUNNER: And I just want to clarify that 20 that's the intent. 21 MR. HORTON: Members, I'm going to defer to 22 Mr. Ingenito, but sort of codify what I believe the 23 intent was, is -- is just to reiterate our existing 24 practices for the most part. 25 I think the -- the nuances that may have been 26 referred to are the nuances that have been -- that I 27 certainly was not aware of, certainly -- probably 28 partially due to my tenure on the Board -- was the 11 1 notifying the Members of the discussion between the Leg. 2 Committee and the legislature -- not necessarily 3 something that I'm interested in, but something that 4 could be of value at a particular given time as a 5 notice, not necessarily as a detail. 6 Certainly my desire is not to micromanage that 7 process and to be respectful of the professional 8 judgment of the team they have developed. And I believe 9 that's -- that's consistent with the practice over the 10 years. 11 Over the years they've developed a relationship 12 with the Governor's office. They've developed a 13 relationship with the legislature. And to some extent 14 that relationship is evaluated based on professional 15 judgment. 16 But, as Mr. Ingenito has sort of articulated, 17 is that when, in their professional judgment, there is 18 something that should be -- the Board Members should be 19 cognizant of -- and I'm presuming there's a process in 20 which we make sure that the Board Members are made 21 aware -- and yet still we maintain the confidentiality 22 in that relationship with the appropriate bodies. 23 MR. INGENITO: Yes, Mr. Chair, that's correct. 24 The memo was designed to clarify existing practice. 25 MR. HORTON: Right, okay. 26 MR. RUNNER: Well, my specific example of that 27 is, for instance, if we come up with an estimate that we 28 send to whoever, I just think it's going to be important 12 1 for us to know what that estimate is too so that if all 2 of a sudden we're before the legislature or we read 3 something in the newspaper inadvertently the next day 4 that attributes the BOE, at least, we have also been 5 informed at that point of whatever that number could 6 be. 7 MS. YEE: And perhaps some of this may have to 8 do with timing -- excuse me, Mr. Chairman. 9 MR. HORTON: Sure. 10 MS. YEE: I'm looking at particularly some of 11 the revenue and cost impact inquiries that we get. We 12 get those from all different sources. We get them from 13 the Department of Finance, from the Legislative 14 Analyst's Office, from members of the legislature -- and 15 I just want to be mindful -- and for me this is really a 16 stickler -- but I think we ought to be ahead of the 17 curve in terms of being informed about what information 18 has been requested of us. 19 But if it's of a nature that is part of the 20 development of a budget proposal, particularly by the 21 administration, and I'm sensitive to this because I've 22 been at that end, I -- I would not want that disclosed 23 until we were sure that was actually going somewhere. 24 MR. HORTON: I would echo that. 25 MR. RUNNER: Are you talking disclosed to 26 Members or are you talking disclosed to the public? 27 MS. YEE: Members -- until it's close to the 28 time that it's made public. 13 1 MR. RUNNER: Well, let me -- so, I guess I have 2 a little concern that we would be -- that a -- that we 3 would have staff that would be developing a number, 4 let's say, and that number's being developed and then 5 that number is not discoverable or reportable to the 6 elected body that oversees that particular group. 7 It seems a little -- I mean, if we're worried 8 about confidentiality, then we're worried about our own 9 confidentiality, which I think we should be extremely 10 protective of. 11 But I'm not even sure -- I'm not even -- I'm 12 not even sure that the -- that a segment of the Board, 13 in terms of staff, has the ability to not disclose some 14 information or number that a Board Member may ask for. 15 MS. YEE: If it's a Board member inquiry, I 16 think that we will get a response. 17 MR. RUNNER: Okay. 18 MS. YEE: If it's an inquiry from an outside 19 party, i. e., the administration, I do have some 20 concerns about the disclosure of that ahead of its time 21 and the time being at which that proposal was made 22 public or right before that time. 23 It's -- I mean, in my mind, it's a separate 24 branch of government, they have a confidential 25 deliberative process for which they rely on the 26 resources that we have here. 27 And I just think it will send a chill 28 throughout that whole deliberative process if we're not 14 1 able to work with some semblance of confidentiality 2 until the -- in this case, the budget's released -- or 3 up until shortly before the budget's released. 4 MR. RUNNER: Well, how do we -- again, I guess 5 I'm struggling with the idea that we would actually 6 have -- I'd agree with confidentiality, I just struggle 7 conceptually with the idea that there would be a 8 decision or some -- or some -- or some numbers being 9 looked at, I guess, for the sake of an example right now 10 that is being reported to another agency. 11 That is, the BOE is reporting a number to a 12 different agency, whether it be the legislature or 13 whether it be have Governor's office or whoever, FTB -- 14 whoever it is -- and -- and we, as elected officials, 15 don't have disclosure to what it is that that number is. 16 That just seems kind of crazy backwards to me. 17 I mean, I understand the confidentiality and yes, we 18 must hold that in confident -- you know, confidentially. 19 But it but seems kind of crazy that the first 20 time we would discover that a number maybe was -- was 21 worked on and developed by the BOE, we find it out when 22 Finance announces it. 23 MS. YEE: Or shortly before it's announced, we 24 do get briefed. 25 MR. RUNNER: Is there -- well, I don't know -- 26 I don't know if there is a process for shortly before 27 it's announced we're briefed. 28 MS. YEE: There should be. We can ask the 15 1 budget shop, but I -- there usually is. 2 MR. RUNNER: But -- I'm sorry, when you say, 3 "Ask the budget shop," at BOE? 4 MS. YEE: Uh-huh. 5 MR. RUNNER: Well, but we don't -- once we a 6 give a number to Finance, we don't -- we don't have 7 control over when it is that they may make their 8 announcements. 9 MS. YEE: But what's -- what's the big deal 10 about the number? I mean, the number's developed by the 11 staff, it's with their best expertise. 12 And, I mean -- 13 MR. RUNNER: May -- 14 MS. YEE: -- for me having knowledge of that 15 number doesn't -- 16 MR. RUNNER: -- well, we may -- we may -- well, 17 quite frankly, we may not -- in a very real way, we may 18 not -- we want to -- we may want to talk through what 19 that number is. 20 Again, I'm not talking about talking through it 21 before it's delivered, I'm talking about just the 22 assumptions that were made in order to get to that 23 number. 24 That's all. Again, I -- 25 MR. HORTON: If I -- 26 MR. RUNNER: -- let me just say one other -- 27 just one other backup point to that, and that is, again, 28 I'm not sure -- again, if -- if other Members don't want 16 1 to have that information, that's fine, they can not have 2 that information. 3 But it seems to me if, indeed, an elected 4 official here of the BOE asks the BOE staff to say, 5 ""If you deliver a number to somebody, I'd 6 like to know what that number is, not in order 7 to get permission to give it, but in order just 8 to have it and know it." 9 I'm -- I'm not sure -- it seems to me that's -- 10 that's a right to which we have, as individual Members 11 within the BOE, of the -- of the staff to which we work 12 with. And it seems to me -- and again I will go back to 13 existing policy. I think existing policy provides that. 14 The policy change, it seems to me, would be if, 15 indeed, we had a policy that said Members were not given 16 that information. Because I think the existing policy 17 in place is that Members are given information that 18 staff gives out to other agencies. 19 I can double-check, I guess, for clarification, 20 either with -- with -- with Legal at that point, but I 21 think the existing policy would be that Members have the 22 right to know the information to which the staff gives 23 to other agencies. 24 I mean, can I ask Chief Counsel if that -- if 25 I'm interpreting that correctly? 26 MR. FERRIS: Randy Ferris, Chief Counsel. 27 We're not aware of any. And it doesn't mean 28 that it doesn't exist and that someone couldn't present 17 1 us with that authority. 2 But in terms of just pure legal privileges and 3 things like that, especially with respect to the 4 legislature, we're not aware that there would be 5 anything that would prohibit staff from answering the 6 Members' question if asked along those lines. 7 In terms of executive privilege and 8 deliberative processes, that's, obviously, not something 9 that we're authorities on. And we probably would need 10 to seek counsel from either the Attorney General or Leg. 11 Counsel, perhaps, if they have some information on that. 12 It's never become an issue, though, because 13 Members have not historically wanted to intrude upon the 14 historic accommodation that we have offered to the 15 Governor's office and to the legislature. 16 So, it's been our historic practice to 17 distinguish between significant legislative developments 18 where there is attribution to BOE, where a Board Member 19 could be asked a question about it and needs to be 20 prepared to address that, versus kind of day-to-day 21 routine matters where we do not report on that. 22 MR. RUNNER: Well, in the very simplest firm -- 23 or form, it would seem to me that if, indeed, a 24 number -- whatever the number, estimate, whatever -- 25 were given to, let's say, legislative staff dealing with 26 budgets issues and it goes to a budget subcommittee, and 27 then that becomes then a part of the discussion in a 28 budget subcommittee, to which BOE staff may be a part of 18 1 we or we as Members may be a part of, it seems to me we 2 would want to know whatever information they have. 3 MS. YEE: Yeah, I have not dispute with that. 4 MR. RUNNER: Okay. That, to me, is the issue. 5 That we should have whatever information somebody else 6 has. 7 MS. YEE: That's already in the public process. 8 So, that I have no -- 9 MR. HORTON: I think we -- if I may, I mean, I 10 think we're somewhat saying the same thing. 11 Robert Ingenito indicated that when it is, in 12 their professional judgment, that the information will 13 be attributed to the Board or that there is significant 14 legislative development -- meaning that the budget is 15 being developed or legislation is being developed -- 16 then, of course, the desire is to -- to make sure that 17 the Members are aware of that process. 18 There is a developmental process where the 19 concepts are being developed and ideas are being 20 developed and in that environment the Board is often 21 used as a resource. And it's not really ever attributed 22 back to the Board. It's just used as a resource. 23 I think the other distinction is that -- is 24 that the Board is sort of bifurcated -- 1, as an 25 administrative function, and then, 2, as a policy 26 function, which is overseen by both -- both are overseen 27 by the Board Members. But in it's administrative 28 capacity, it's often used as a -- for research and 19 1 initial information. 2 But I -- and, so, it doesn't sound as if, 3 though, we're -- it sounds as if, though, we are 4 consistent with historical practices and desire to 5 remain consistent with historical practices. 6 I would just add one additional caveat, if you 7 will, that I also believe that Members in the process of 8 developing their concepts and their ideas should have a 9 certain level of confidentiality -- 10 MR. RUNNER: Yes. 11 MR. HORTON: -- until such time that that draft 12 concept now becomes a public document. 13 MS. YEE: "Members" meaning each of us? 14 MR. HORTON: Each of us - -- 15 MR. RUNNER: Yes. 16 MR. HORTON: -- I mean, whether I -- whether I 17 agree or disagree with the -- with the idea or the 18 strategy or the initiative, I don't feel it's 19 appropriate for me to impede that process -- 20 MR. RUNNER: Right. 21 MR. HORTON: -- and that that confidentiality 22 should be maintained. 23 And it's that level of confidentiality we have 24 historically sought to the provide to the Governor's 25 office as well and the legislative process. 26 So, when it's -- it begins to embark into the 27 public domain or something that would be attributed to 28 the Board, at that particular time, then, certainly, the 20 1 entire body should be cognizant of it because they may 2 very well be called to respond or to engage. 3 Member Mandel. 4 MS. MANDEL: Sure. I think you're doing the 5 same translation function I was trying to do in my head. 6 With respect to these sorts of, you know, 7 budget items -- and we're not going to have another 8 budget run for a while, so, but -- hopefully -- but what 9 I'm hearing is that the importance that everyone 10 recognizes of maintaining the -- the technical -- 11 whether it's on the program side or the revenue side or 12 cost side -- the technical professional expertise of the 13 staff and the credibility that that has for everybody 14 who relies on that expertise and that with respect to 15 these items where people are, you know, developing 16 budget proposals that they might be presenting the 17 administration, predominately, I guess, in this 18 discussion, that that information is -- is the sort of 19 normal type of requests that our staff gets in in this 20 unit, that they respond to. 21 And all I -- what I hear Ms. Yee saying -- and 22 kick me if I got the wrong, Betty -- but what I hear her 23 saying is that -- 24 MR. HORTON: You are closer, Betty. 25 MS. MANDEL: You're closer, so, you may have to 26 kick me. 27 MS. YEE: She has boots on. 28 MS. MANDEL: Yeah, the boots on. 21 1 That -- that it's not and it's -- what I'm 2 hearing is it's not that any information is coming for 3 any kind of approval and that it's not coming prior to 4 some point right close to when they're going to go 5 public with it -- that's -- that's what I'm hearing of 6 how it's -- that it's informational to the Board right 7 before they're about to release the budget, so that you 8 are not surprised when they -- when you open up the 9 budget summary that there is some BOE -- 10 MR. HORTON: Reference there? 11 MS. MANDEL: -- item in there. 12 That's -- that's what I'm hearing. And, if -- 13 so nobody is kicking me? 14 MR. HORTON: No. 15 MS. MANDEL: That is how I understand it. 16 MR. HORTON: I think we're all on the same page 17 and it's consistent with historical practices -- 18 MS. YEE: May I say one more -- 19 MR. HORTON: -- with some clarifications. 20 Member Yee. 21 MS. YEE: -- Mr. Chairman, I know, just as 22 we're respectful about inquiries in concept development 23 that each of us may be pursuing and respecting the 24 confidentiality of that among ourselves, such that that 25 information doesn't get shared or disclosed in the 26 report, I'd also like to just ask the courtesy be 27 extended to those of us who are sponsoring bills 28 individually, that contacts that are made about bills 22 1 for another Member or colleague of ours, that courtesy 2 be extended to the -- 3 MR. RUNNER: Yes. 4 MS. YEE: -- offering Member first. 5 MR. HORTON: Yes, definitely. 6 Okay. We actually just went through all this 7 'cause this is your first time before us. 8 We're kidding. 9 MR. INGENITO: Thank you. 10 MS. YEE: Yes, Mr. Chair, well -- 11 MR. HORTON: No, we're very serious. 12 MS. YEE: -- and I -- I just want the 13 expectations to be clear and I hope that this can be the 14 practice that legislative staff and members of the 15 administration feel comfortable to continue to work with 16 us over. 17 The other thing I wanted to mention is that we 18 talked about significant legislative matters, but I 19 would consider the budget as being a significant 20 legislative matter -- 21 MR. HORTON: Yeah. 22 MS. YEE: -- as well. So, I think that that's 23 all encompassing. 24 MR. HORTON: Further discussion, Members? 25 Hearing none, thank you very much for your 26 presentation. 27 MR. HORTON: Thank you. 28 ---o0o--- 23 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 30, 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 23 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: JUNE 18, 2012 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 24