1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 AUGUST 13, 2013 10 11 12 ITEM J CHIEF COUNSEL MATTERS 13 RULEMAKING 14 J1 SECOND READOPTION OF EMERGENCY REGULATION 2000, 15 RETAILER REIMBURSEMENT RETENTION 16 17 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 Joann Richmond 15 Chief, Board Proceedings Division 16 17 For Board of Equalization Staff: Bradley Heller 18 Legal Department 19 20 ---oOo--- 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 AUGUST 13, 2013 4 ---oOo--- 5 MS. RICHMOND: Our next item are our Chief 6 Counsel matters. 7 Item J Rulemaking; J1 Second Readoption of 8 Emergency Regulation 2000, Retailer Reimbursement 9 Retention. 10 MR. HORTON: Welcome. 11 MR. HELLER: Good afternoon, Chairman 12 Horton and Members of the Board. I'm Bradley Heller 13 from the Board's Legal Department. 14 I'm here to request that the Board readopt 15 Emergency Regulation 2000, for the second and last 16 time, to maintain the status quo while the Board 17 considers the adoption of Regulations 2000 and 2001 18 through the regular rulemaking process. 19 MR. HORTON: Members? 20 MS. STEEL: Just question. 21 MR. HELLER: Yes. 22 MS. STEEL: If we don't adopt, what happen? 23 MR. HELLER: Today? 24 MS. STEEL: Yeah. 25 MR. HELLER: Well, basically the -- the 26 current emergency regulation will expire on 27 September 24th. If the -- if it's not readopted and 28 the Board hasn't completed the adoption of 3 1 Regulation 2000 and submitted the complete 2 rulemaking file to OAL, the Office of Administrative 3 Law, by that time, so the readoption would extend 4 the effective period by 90 days. 5 MS. STEEL: From September? 6 MR. HELLER: From -- from when OAL grants 7 the approval. But we're going to try to get it as 8 close to that September 24th as possible. 9 MR. RUNNER: The -- the -- my 10 understanding, as I recall, this was a process we 11 had to continue to do in order for -- we were 12 looking for two different issues. Number one, we 13 needed more time, uhm, for -- to -- to -- to try to 14 look at what the right amount of reimbursement was, 15 based upon two issues; one was the revenue collected 16 and the number of retailers affected. 17 And so that was the idea of putting this 18 off and moving the emergency regulation forward 19 while that continues to take place. Does that -- do 20 I have that correct? 21 MR. HELLER: You're correct, Senator 22 Runner. It was just to maintain status quo while 23 the Board decides what the perm- -- to do for a 24 permanent regulation. 25 MR. RUNNER: Okay, thank you. 26 MS. YEE: Yeah. I'll move the staff 27 recommendation. 28 MR. HORTON: Staff recommen- -- Member Yee 4 1 moves staff recommendation. Second by Member 2 Runner. 3 Without objection, Members, uh, such will 4 be the order. 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 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 August 13, 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: August 27, 2013 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL, CSR #9039 22 Hearing Reporter 23 24 25 26 27 28 6