1       BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

         2                         450 N STREET

         3                    SACRAMENTO, CALIFORNIA

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         8                    REPORTER'S TRANSCRIPT

         9                       JANUARY 26, 2016

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        16                            ITEM F

        17                        PUBLIC HEARING

        18     F1 PROPOSED AMENDMENTS TO EMERGENCY TELEPHONE USERS

        19       SURCHARGE REGULATIONS 2401, DEFINITIONS, 2413,

        20       EXEMPTIONS FROM SURCHARGE, AND 2422, RETURNS AND

        21                           PAYMENT

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        27                       REPORTED BY:     Carole W. Browne

        28                                        CSR NO. 7351




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         1                        P R E S E N T

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         3    For the Board of           Jerome E. Horton
              Equalization:              Chairman
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                                         Sen. George Runner (Ret.)
         5                               Vice Chair

         6                               Fiona Ma, CPA
                                         Member
         7
                                         Diane L. Harkey
         8                               Member

         9                               Yvette Stowers
                                         Appearing for Betty T.
        10                               Yee, State Controller
                                         (per Government Code
        11                               Section 7.9)

        12                               Joann Richmond
                                         Chief
        13                               Board Proceedings
                                         Division
        14
              For the Board of
        15    Equalization Staff:        Andrew Kwee
                                         Tax Counsel III
        16                               Legal Department

        17                               Bradley Heller
                                         Tax Counsel IV
        18                               Legal Department

        19                          ---o0o---

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         1                               450 N STREET

         2                               SACRAMENTO, CALIFORNIA

         3                               JANUARY 26, 2016

         4                          ---o0o---

         5            MR. HORTON:  Ms. Richmond, what's the next

         6   matter before us?

         7            MS. RICHMOND:  Our next matter is Item F,

         8   Public Hearings.  Item F1, Proposed Amendments to

         9   Emergency Telephone Users Surcharge Regulations 2401,

        10   Definitions, 2413, Exemptions from Surcharge, and 2422,

        11   Returns and Payment.

        12            MR. HORTON:  Discussion, Members?

        13            We have Mr. Andrew Kwee.

        14            Are you okay?  I thought I saw you trip

        15   earlier.

        16            MR. KWEE:  Oh, no, I'm good.  Thank you.

        17   Whenever you're ready, I can proceed.

        18            MR. HORTON:  Good.  Please.

        19            MR. KWEE:  Good evening, Chairman Horton and

        20   Members of the Board.  I am Andrew Kwee with the Board's

        21   Legal Department, and with me today is Brad Heller, also

        22   with the Legal Department.

        23            We request that the Board vote to adopt the

        24   proposed amendments to the Emergency Telephone Users

        25   Surcharge Regulations 2401, Definitions, 2413,

        26   Exemptions from Surcharge, and 2422, Returns and

        27   Payments.

        28            The amendments to Regulations 2401 and 2402




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         1   clarify a direct seller's prepaid mobile telephony

         2   services surcharge reporting requirements, and the

         3   amendments to Regulation 2413 make the regulation

         4   consistent provided by the United States Department of

         5   State, Office of Foreign Missions.

         6            Thank you.

         7            MS. HARKEY:  Move to adopt.

         8            MR. HORTON:  Moved by Member Harkey to adopt,

         9   second by Member Ma.

        10            MS. HARKEY:  Such will be the order?

        11            MR. HORTON:  Yeah.

        12            Members, in that this matter is before us

        13   publicly, I sort of feel compelled to express a concern

        14   relative to our previous action; that is, that the

        15   presumption of a submission, sending of a letter,

        16   consummates a contractual agreement between the Board

        17   and the agencies, is concerning, given the opposition to

        18   this particular tax throughout the state of California

        19   from various individuals who are expressing their

        20   concerns.  I think it is wise to look at, to make sure

        21   that that is cured.

        22            And what I'm speaking of is the first quarter

        23   in which we were having challenges and -- and issuing --

        24   notifying the impacted parties, having them

        25   consummate -- consummating an agreement between the

        26   impacted parties, and having the establishment or

        27   passing of a resolution, establishment of a contractual

        28   relationship, and bringing that forward in a timely




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         1   manner.

         2            I understand all the challenges that existed at

         3   the time and want to express my concern about whether or

         4   not those are valid contracts.

         5            No further discussion is necessary unless

         6   Members would like to have that.  I'm not asking you to

         7   respond; I'm just expressing my concern.

         8            There's a motion and a second.  Without

         9   objection, such will be the order.

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         1                    REPORTER'S CERTIFICATE

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         3    State of California    )

         4                           )   ss

         5    County of Sacramento   )

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         7            I, CAROLE W. BROWNE, Hearing Reporter for the

         8   California State Board of Equalization, certify that on

         9   January 26, 2016, I recorded verbatim, in shorthand, to

        10   the best of my ability, the proceedings in the

        11   above-entitled hearing; that I transcribed the shorthand

        12   writing into typewriting; and that the preceding pages 1

        13   through 5 constitute a complete and accurate

        14   transcription of the shorthand writing.

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        16   Dated:  January 31, 2016

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        19                      _________________________________

        20                      CAROLE W. BROWNE, CSR #7351

        21                      Hearing Reporter

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