1      BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                        450 N STREET

            3                   SACRAMENTO, CALIFORNIA

            4    

            5    

            6    

            7    

            8                    REPORTER'S TRANSCRIPT

            9                        MAY 22, 2013

           10    

           11    

           12    

           13    

           14                           ITEM P 

           15                OTHER ADMINISTRATIVE MATTERS

           16                          ITEM P1 

           17                 EXECUTIVE DIRECTOR'S REPORT

           18             3.  CROS PROJECT UPDATE AND ACTIONS

           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    
                                            Joann Richmond 
           15                               Chief, Board Proceedings 
                                            Division
           16    

           17    For Staff:                 Eric Steen
                                            Director, CROS Project
           18    

           19                          ---oOo---

           20    

           21    

           22    

           23    

           24    

           25    

           26    

           27    

           28    




                                                                     2




                                                                      


            1                               450 N STREET

            2                               SACRAMENTO, CALIFORNIA

            3                               MAY 22, 2013

            4                          ---oOo--- 

            5             MR. HORTON:  Okay.  Ms. Richmond.  

            6             MS. RICHMOND:  Our next item is P1.3, CROS 

            7    Project Update and Actions.  

            8             MR. HORTON:  Mr. Eric Steen, welcome to the 

            9    Board of Equalization.  

           10             MR. STEEN:  Thank you.  

           11             MR. HORTON:  State Board of Equalization.  

           12             MR. STEEN:  State Board of Equalization.  

           13             MR. HORTON:  BOE.  

           14             MR. STEEN:  BOE.  

           15             MR. HORTON:  SBE.  

           16             MR. STEEN:  That, too.  

           17             MR. HORTON:  How are you?  

           18             MR. STEEN:  I'm doing very well, thank you.  

           19             Honorable Members, Mr. Chairman, Eric 

           20    Steen, CROS Project Director.  

           21             It's a privilege to give you a brief update 

           22    on the CROS Project and answer any questions that 

           23    you may have.  

           24             We're moving forward with the RFP, refining 

           25    it.  In fact, we've had General Services on site the 

           26    last couple weeks, helping us to refine the RFP, and 

           27    we're hopeful to get it out to the vendor community 

           28    soon.  




                                                                     3




                                                                      


            1             Um, at the last hearing Senator Runner 

            2    asked a question about our resource -- resource 

            3    request to support the parallel initiatives.  I'm 

            4    pleased to report that our Executive Director, 

            5    Cynthia, is behind that -- those requests.  And the 

            6    team is not only growing, but the quality of the 

            7    team composition is -- is improving and I feel we're 

            8    heading in the right direction.  

            9             Um, just a couple of benefits I'd like to 

           10    highlight regarding the project.  Um, we continue to 

           11    meet our -- our revenue goals as part of the CROS 

           12    Project and one brief example is we've received an 

           13    additional million dollars related to cigarette 

           14    Internet tax and associate use tax as a result of 

           15    our group's cooperation with PSTD.  

           16             And another benefit I'd like to highlight 

           17    is that the data that we are cleansing, um, as part 

           18    of one of the parallel initiatives has been given to 

           19    SUTD and they've used that to improve the way we go 

           20    about selecting audits, performing audit selections.  

           21    So we're making some great strides.  

           22             If you -- thus ends my report.  If you have 

           23    any other questions, I would be happy to -- to 

           24    answer them.  

           25             MR. HORTON:  Discussion?  

           26             Member Steel?  

           27             MS. STEEL:  I just want to know what 

           28    percentage has been done?  




                                                                     4




                                                                      


            1             MR. STEEN:  What percentage.  You get me on 

            2    that every time.  

            3             MS. STEEL:  Just -- just kidding.  

            4             MR. STEEN:  Okay.  

            5             MR. HORTON:  Thank you, Mr. Steen.  We 

            6    will -- we will receive and file.  Appreciate it.  

            7             MR. STEEN:  Thank you very much.  

            8             MS. STEEL:  Thank you.  

            9                          ---oOo---

           10    

           11    

           12    

           13    

           14    

           15    

           16    

           17    

           18    

           19    

           20    

           21    

           22    

           23    

           24    

           25    

           26    

           27    

           28    





                                                                     5




                                                                      


            1                   REPORTER'S CERTIFICATE

            2    

            3    State of California    )

            4                           )  ss

            5    County of Sacramento   )

            6    

            7             I, KATHLEEN SKIDGEL, Hearing Reporter for 

            8    the California State Board of Equalization certify 

            9    that on May 22, 2013 I recorded verbatim, in 

           10    shorthand, to the best of my ability, the 

           11    proceedings in the above-entitled hearing; that I 

           12    transcribed the shorthand writing into typewriting; 

           13    and that the preceding pages 1 through 5 constitute 

           14    a complete and accurate transcription of the 

           15    shorthand writing.

           16    

           17    Dated:  July 15, 2013

           18    

           19    

           20                           ____________________________

           21                           KATHLEEN SKIDGEL, CSR #9039

           22                           Hearing Reporter

           23                                

           24             

           25             

           26             

           27             

           28             




                                                                     6