1       BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                         450 N STREET

            3                    SACRAMENTO, CALIFORNIA

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            7                     REPORTER'S TRANSCRIPT

            8                         MAY 31, 2012

            9                     CHIEF COUNSEL MATTERS

           10                            ITEM M

           11                 M1 REQUEST FOR AUTHORIZATION

           12                  TO FILE AMICUS CURIAE BRIEF

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           23                     Reported by:  Juli Price Jackson 

           24                                   No. CSR 5214

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            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                                       Joann Richmond 
                                                    Chief, Board  
           16                                       Proceedings Division
                
           17   For the Staff:                      Richard Moon 
                                                    Tax Counsel       
           18                                       Legal Department  
                     
           19   

           20                           ---oOo---

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            1                                   450 N STREET

            2                                   SACRAMENTO, CALIFORNIA 

            3                                   MAY 31, 2012

            4                           ---oOo---

            5            MR. HORTON:  Ms. Richmond.  

            6            MS, RICHMOND:  Our next item is M, Other Chief 

            7   Counsel Matters, M1, Request for authorization to file 

            8   amicus curiae brief.

            9            MS. MANDEL:  Mr. Chairman, on this M1, I'm not 

           10   going to participate because it involves CalSTRS.  And 

           11   the Controller's a member on CalSTRS.  

           12            MR. HORTON:  Okay, noted nonparticipation by 

           13   the Deputy controller.

           14            Members, Mr. Moon will be making -- introducing 

           15   this case.  

           16            MR. MOON:  Yes, good afternoon, Chairman 

           17   Horton, emergency Members of the Board.  I am Richard 

           18   Moon from the Legal Department.  

           19            The District Court of Appeals in Los Angeles 

           20   has asked the Board for its opinion on several questions 

           21   involving a case involving CalSTRS that it's brought 

           22   against the County of LA. 

           23            And the questions can be summarized broadly as 

           24   two issues, the first is whether CalSTRS has standing to 

           25   challenge the assessment and the second is whether 

           26   Government Code Section 7510 subdivision (b), which 

           27   instructs the assessors in valuing possessory interests 

           28   that are owned by State public retirement systems is 




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            1   unconstitutional.  

            2            And as explained in our Chief Counsel memo, if 

            3   the Board gives its approval, an amicus brief will be 

            4   filed that generally supports CalSTRS on those issues.  

            5            And that would be based on longstanding and 

            6   well accepted methods of valuing PIs, possessory 

            7   interests, as well as longstanding staff opinion that 

            8   Section 7510 has constitutional infirmities because it 

            9   instructs assessors to assess exempt property and in 

           10   excess of fair market value.  

           11            And for those reasons we request authorization 

           12   to file the brief.

           13            MR. HORTON:  Moved by Member Yee, second by 

           14   Member Steel.

           15            Without objection, such will be the order, 

           16   noting nonparticipation of the Deputy Controller.

           17            MR. HORTON:  Ms. Richmond.  

           18            MR. MOON:  Thank you.

           19                           ---o0o---

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            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 31, 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 4 constitute a complete and accurate 

           14   transcription of the shorthand writing.

           15   

           16   Dated:  JUNE 21, 2012

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           19                          ____________________________

           20                          JULI PRICE JACKSON

           21                          Hearing Reporter

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