1      BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                        450 N STREET

            3                   SACRAMENTO, CALIFORNIA

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            8                    REPORTER'S TRANSCRIPT

            9                       AUGUST 13, 2013

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           12                ITEM J CHIEF COUNSEL MATTERS

           13                         RULEMAKING 

           14     J1 SECOND READOPTION OF EMERGENCY REGULATION 2000, 

           15              RETAILER REIMBURSEMENT RETENTION

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           27                      REPORTED BY:  Kathleen Skidgel 

           28                                     CSR NO. 9039




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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 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
                 
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           20                          ---oOo---

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            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 




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            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 




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            1    moves staff recommendation.  Second by Member 

            2    Runner.  

            3             Without objection, Members, uh, such will 

            4    be the order.  

            5                          ---oOo---

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            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

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           20                           ____________________________

           21                           KATHLEEN SKIDGEL, CSR #9039

           22                           Hearing Reporter

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