1      BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                  5901 GREEN VALLEY CIRCLE

            3                   CULVER CITY, CALIFORNIA

            4    

            5    

            6    

            7                    REPORTER'S TRANSCRIPT

            8                      FEBRUARY 24, 2015

            9               P  OTHER ADMINISTRATIVE MATTERS

           10               P1  EXECUTIVE DIRECTOR'S REPORT

           11            P1.5  CROS PROJECT UPDATE AND ACTIONS

           12    

           13    

           14    

           15    

           16    

           17    

           18    

           19    

           20    

           21                      Reported by:  Juli Price Jackson 

           22                                    No. CSR 5214

           23    

           24    

           25    

           26    

           27    

           28    






                                                                     1




                                                                      


            1                        P R E S E N T

            2    

            3    For the Board              Jerome E. Horton
                 of Equalization:           Chairman
            4    
                                                     
            5                               Sen. George Runner (Ret.)
                                            Vice-Chairman
            6         
                 
            7                               Fiona Ma, CPA 
                                            Member
            8    
                                                     
            9                               Diane L. Harkey
                                            Member
           10    
                                                     
           11                               Yvette Stowers
                                            Appearing for Betty T. 
           12                               Yee, State Controller 
                                            (per Government Code 
           13                               Section 7.9)
                 
           14                                        
                                            Joann Richmond 
           15                               Chief, Board      
                                            Proceedings Division
           16    

           17    For the Board:             David Gau
                                            Chief Deputy Director
           18         

           19    

           20                          ---oOo---

           21    

           22    

           23    

           24                  

           25    

           26    

           27    

           28    




                                                                     2




                                                                      


            1                               5901 GREEN VALLEY CIRCLE

            2                               CULVER CITY, CALIFORNIA 

            3                               FEBRUARY 24, 2015

            4                          ---oOo---

            5             MR. HORTON:  Ms. Richmond, what is our next 

            6    matter?

            7             MS. RICHMOND:  Our next matter's item P1.5, 

            8    CROS Project Update and Actions.

            9             MR. GAU:  Good evening, Mr. Chairman and 

           10    Members, David Gau presenting the CROS update this 

           11    month.  

           12             We received the second round of draft 

           13    proposals last week, which are currently being 

           14    evaluated.  

           15             Bidders will submit final proposals in 

           16    mid-May.  And we are on schedule to start 

           17    implementation in the first quarter of 2016.  

           18             MR. HORTON:  Discussion, Member?

           19             MS. HARKEY:  My concern is it's going to be 

           20    obsolete by the time we get done with it, but --

           21             MR. GAU: It's -- quite a process.  

           22             MS. HARKEY:  -- it'll be an improvement 

           23    over what we have.  

           24             MR. GAU:  It will, you're correct. 

           25             MS. HARKEY:  That's the point.  

           26             MR. HORTON:  Yeah, it -- in that regard -- 

           27    well, I hesitate to express my concern as it relates 

           28    to the revenue generating estimates of CROS.  




                                                                     3




                                                                      


            1             It is a fine piece of software and 

            2    hardware, but it's going to take quite a bit of 

            3    effort in order to actually generate revenue.  And, 

            4    so, I just want to sort of share that as we go 

            5    through this process and get closer to -- closer to 

            6    public scrutiny.

            7             With that said, the Board will receive and 

            8    file your report.  And thank you very much for your 

            9    presentation.

           10                           ---o0o---

           11             

           12             

           13             

           14             

           15             

           16             

           17             

           18             

           19             

           20             

           21             

           22             

           23             

           24             

           25             

           26             

           27             

           28             






                                                                     4




                                                                      


            1             .  

            2                   REPORTER'S CERTIFICATE

            3    

            4    State of California    )

            5                           )  ss

            6    County of Sacramento   )

            7    

            8             I, JULI PRICE JACKSON, Hearing Reporter for 

            9    the California State Board of Equalization certify 

           10    that on FEBRUARY 24, 2015 I recorded verbatim, in 

           11    shorthand, to the best of my ability, the 

           12    proceedings in the above-entitled hearing; that I 

           13    transcribed the shorthand writing into typewriting; 

           14    and that the preceding pages 1 through 4 constitute 

           15    a complete and accurate transcription of the 

           16    shorthand writing.

           17    

           18    Dated:  MAY 18, 2015

           19    

           20    

           21                           ____________________________

           22                           JULI PRICE JACKSON

           23                           Hearing Reporter

           24                              

           25                              

           26                                

           27             

           28             




                                                                     5