1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 REPORTER'S TRANSCRIPT 7 MAY 29, 2019 8 9 10 ITEM G 11 RULEMAKING SECTION 100 CHANGES; 12 ITEM G1 13 Rules for Tax Appeals 14 (18 CCR, DIV. 2.1) 15 16 17 18 19 20 21 22 23 24 25 26 27 REPORTED BY: Jillian M. Sumner 28 CSR NO. 13619 1 1 P R E S E N T 2 3 For the Board of Honorable Malia S. Cohen Equalization: Chair 4 Honorable Antonio Vazquez 5 Vice Chair 6 Honorable Ted Gaines First District 7 Honorable Mike Schaefer 8 Fourth District 9 Yvette Stowers Appearing for Betty T. 10 Yee, State Controller (per Government Code 11 Section 7.9) 12 For the Board of Henry Nanjo 13 Equalization Staff: Chief Counsel Board Proceedings 14 Richard Moon 15 Legal Department 16 Toya Davis Clerk 17 Board Proceedings 18 ---oOo--- 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 MAY 29, 2019 4 ---oOo--- 5 MS. DAVIS: Our next item is Item G; 6 Rulemaking Section 100 Changes. 7 Item 1 is the Rules for Tax Appeals. This 8 item requires a vote. 9 Mr. Moon is coming forward with Mr. Nanjo. 10 Thank you. 11 MS. COHEN: All right. Thank you. 12 Good to see you. 13 MR. NANJO: Chair Cohen, this is our -- as 14 we have previously gone over, these are Section 100 15 changes, which are non-substantive changes. 16 This is the fine work of Mr. Moon sitting 17 next to me. I'm going to pass the mic over to him 18 for any questions and to tee up the issue. 19 MS. COHEN: I appreciate that. 20 Welcome back, Mr. Moon. 21 MR. MOON: Thank you. 22 Good morning, Madam Chair and Members of the 23 Board. 24 My name is Richard Moon with the Legal 25 Department. 26 We're here to request your approval to 27 complete the Section 100 changes for the Rules for 28 Tax Appeals. 3 1 The Rules for Tax Appeals govern the process 2 for taxpayers to appeal to the full Board a tax or an 3 assessment determination that's made by staff. 4 And with the passage of AB 102, a number of 5 tax and fee programs, as you know, were removed from 6 the Board's jurisdiction to hear appeals. And, 7 therefore, we need to make corresponding changes to 8 the Rules for Tax Appeals. 9 So more specifically, these changes would 10 repeal the entirety of Chapter 4, which deals with 11 franchise and income taxes. And they would make 12 amendments to various sections in Chapters 2, 3, 5 13 and 6, which deal with special taxes, property taxes, 14 the general Board procedures, and then some rules 15 related to the Taxpayer Rights Advocate. 16 Thank you. 17 MS. COHEN: Thank you very much. 18 Colleagues, are there any questions for 19 Mr. Moonie? I mean Mr. Moon. Excuse me. 20 Okay. Yes. 21 MR. VAZQUEZ: One quick -- one quick -- you 22 know, looking it over, I noticed we're using -- it 23 seems like we're interchanging a couple different 24 e-mails that people could respond to. Is there a 25 reason why we're not just consistent with one? 26 Well, I know one of them is meeting info, 27 and the other one is conference info. And I was 28 wondering if there's -- 4 1 MR. MOON: Yeah. I -- I think historically, 2 and what had happened was we have different e-mails 3 that address different issues. 4 So, for example, if somebody is inquiring 5 specifically about meeting info, then that inquiry 6 would go directly into that e-mail address. And the 7 person who is responding to it would know that that's 8 what the question was about. 9 MR. VAZQUEZ: Okay. So for -- so I noticed, 10 I guess, in Section 5260 and then 5262. So those are 11 two different -- you're saying they're two different 12 issues? 13 MR. MOON: Let me just check. 14 5216, and then what was the second one? 15 MR. VAZQUEZ: 5262. 16 I thought they were both on the same topic. 17 But maybe I'm -- 18 MR. MOON: Well, 5216 -- let me just make 19 sure I'm not speaking incorrectly. 20 Yeah. So 56 -- 5216 would be directed 21 towards Board Proceedings when a filing is made for a 22 petition for redetermination to begin the process. 23 5262 addresses appeals conferences once an 24 appeals conference has been scheduled. 25 So this would be the address they use to 26 postpone or to reschedule a particular appeals 27 conference once you're into the process. 28 MR. VAZQUEZ: And then when you look at 5 1 5240, and then, I guess -- actually, under -- I guess 2 it's 5240, there's no e-mail address on that one. 3 Is there a reason why there's no e-mail 4 reference on that one? 5 MR. MOON: Yeah, I'm not sure why there's no 6 e-mail address on this one. 7 We had -- in making these changes, partially 8 because they're Section 100 changes, we had kept to 9 what was in -- what was previously there, and made 10 the minimal amount of changes that we thought would 11 be necessary. 12 MR. VAZQUEZ: So maybe just an oversight you 13 think or something? 14 MR. MOON: It may have been. 15 So I did not independently inquire as to why 16 there was no e-mail address for this particular 17 section in the past. Because there was no e-mail 18 address in the past, we just kept an e-mail address 19 out. 20 MR. VAZQUEZ: Okay. That -- that was the 21 only thing that caught my eye. 22 MR. NANJO: Member -- Member Vazquez, Board 23 Proceedings Division is used throughout. That's a 24 pretty common e-mail or contact information. So 25 they -- by this stage of the proceedings, they should 26 have that pretty well identified. 27 MR. VAZQUEZ: How to get ahold of -- 28 MR. NANJO: Board Proceedings. Right. 6 1 And one of the things that happened in, for 2 lack of a better term, the down-sizing of BOE, is it 3 kind of simplified the process. You basically have 4 Board Proceedings for a majority of the matters. And 5 then Appeals Division is actually part of Legal. So 6 that's the other e-mail address you'll see in 7 there. 8 MS. COHEN: So just as a point of reference, 9 these Rule 100 changes include changes that are made 10 necessary by the passage in AB 102, which transferred 11 the appeals to the Office of Tax Appeal -- appeals to 12 the Office of Tax Appeals. 13 I just want to state that for the record. 14 So these are non-substantive changes, right? 15 MR. MOON: Correct. 16 MS. COHEN: That don't require any formal 17 review by the Office of Administrative Law. So, 18 therefore, I would recommend that we support adoption 19 of these changes. 20 And I'll make a motion to accept the 21 proposed changes, to accept the Rule 100 changes. 22 Is there a second? 23 MR. VAZQUEZ: Second. 24 MS. COHEN: A second by Member Vazquez. 25 Can we take that without objection? 26 Without objection? 27 All right. Thank you. 28 Without objection, the motion passes 7 1 unanimously. 2 Thank you very much. 3 MR. MOON: Thank you. 4 MS. COHEN: Yes, thank you. 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 8 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, Jillian Sumner, Hearing Reporter for 8 the California State Board of Equalization, certify 9 that on May 29, 2019 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 8 14 constitute a complete and accurate transcription of 15 the shorthand writing. 16 17 Dated: June 19, 2019 18 19 20 ____________________________ 21 JILLIAN SUMNER, CSR #13619 22 Hearing Reporter 23 24 25 26 27 28 9