1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 AUGUST 25, 2015 10 11 12 13 14 15 FINAL ACTIONS 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 Sen. George Runner (Ret.) Vice Chair 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 16 Division 17 For Staff: Anthony Epolite 18 Tax Counsel IV Legal Department 19 Lou Ambrose 20 Tax Counsel IV Legal Department 21 22 ---oOo--- 23 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 AUGUST 25, 2015 4 ---oOo--- 5 MR. HORTON: Ms. Richmond. 6 MS. RICHMOND: That concludes our 7 administrative session. 8 Next are those items that were submitted 9 for decision. Subitem B3, Matthew G. Krane, still 10 has not shown up and we have made another phone call 11 and left a message. 12 MR. HORTON: One second. 13 MR. RUNNER: We have closed session? 14 MS. RICHMOND: And we have closed 15 session. 16 MR. HORTON: Members, we will -- 17 You've called them? 18 MS. RICHMOND: Yes, again. 19 MR. HORTON: And have not been able to get 20 in contact with them? 21 MS. RICHMOND: Correct. 22 MR. HORTON: Any communications prior to 23 the hearing as to their intent to show up? 24 They've been responsive thus far? 25 MS. RICHMOND: Just the response to the 26 hearing notice. They responded to the hearing 27 notice. 28 MR. HORTON: And that was how long ago? 3 1 MS. RICHMOND: That was at least 15, 20 2 days ago. 3 MR. HORTON: And I'm presuming their 4 response was in the affirmative. 5 MS. RICHMOND: Yes. 6 MR. HORTON: Okay. 7 We will now go to closed session. Is that 8 up today? 9 MS. HARKEY: Are we going to take a vote 10 on -- 11 MS. RICHMOND: So the Mem -- 12 MR. HORTON: And then come back and take -- 13 MR. RUNNER: Come back and take the vote. 14 MR. HORTON: -- the votes. Yeah. 15 MS. RICHMOND: The Members will now go into 16 closed session to discuss settlements and personnel 17 matters. 18 (Whereupon proceedings in closed session 19 were held but unreported.) 20 MR. HORTON: We'll return to the unresolved 21 matters. 22 Ms. Richmond. 23 MS. RICHMOND: Our first matter is item B3 24 Matthew G. Krane. He still has not shown up or 25 responded to phone calls. 26 ---oOo--- 27 ITEM B3 28 MATTHEW G. KRANE 4 1 NO. 813532 2 ---oOo--- 3 MR. HORTON: Is there a desire to take this 4 matter up, Members? 5 Member Harkey. 6 MS. HARKEY: I'll move to sustain the 7 FTB. 8 MR. HORTON: Member Harkey moves to sustain 9 the FTB. Second by -- 10 MS. STOWERS: Second. 11 MR. HORTON: -- Member Stowers. 12 Without objection, Members, such will be 13 the order. 14 ---oOo--- 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 MR. HORTON: Ms. Richmond. 2 MS. RICHMOND: Our next matter is B4 Philip 3 M. Aker. 4 ---oOo--- 5 ITEM B4 6 PHILIP M. AKER 7 NO. 839838 8 ---oOo--- 9 MS. HARKEY: I'll move to grant the refund, 10 grant the appeal. 11 MR. HORTON: Member Harkey moves to grant 12 the appeal. Second by Member -- 13 MR. RUNNER: Second. 14 MR. HORTON: -- Runner. 15 MS. STOWERS: Objection. Not established 16 reasonable cause. 17 MR. HORTON: Objection noted. 18 My apologies. Objection noted. 19 Ms. Stowers. 20 MS. STOWERS: Objecting on the basis that 21 he has not established reasonable cause for not 22 filing on demand. 23 MR. HORTON: I concur, as much as I'd love 24 to be able to grant it based on love. 25 Ms. Richmond, please call the roll. 26 MS. RICHMOND: Mr. Horton. 27 MR. HORTON: No. 28 MS. RICHMOND: Ms. Harkey. 6 1 MS. HARKEY: Aye. 2 MS. RICHMOND: Mr. Runner. 3 MR. RUNNER: Aye. 4 MS. RICHMOND: Ms. Ma. 5 MS. MA: No. 6 MS. RICHMOND: Motion fails. 7 MR. HORTON: Is there a motion, Members, 8 to -- 9 MS. STOWERS: Move to sustain the Franchise 10 Tax Board. 11 MR. HORTON: Member Stowers moves to 12 sustain the Franchise Tax Board. 13 MR. HORTON: Second by Member Harkey. 14 Objection, Members? 15 Without objection, such will be the order. 16 ---oOo--- 17 18 19 20 21 22 23 24 25 26 27 28 7 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 25, 2015 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 7 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: September 9, 2015 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL, CSR #9039 22 Hearing Reporter 23 24 25 26 27 28 8