1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 JANUARY 26, 2016 10 11 12 ITEM F 13 PUBLIC HEARING 14 F2 PROPOSED ADOPTION OF PREPAID MOBILE TELEPHONY 15 SERVICES REGULATIONS 2460, ADMINISTRATION 16 2461, EXEMPTIONS, DEDUCTIONS, CREDITS, AND SPECIFIC 17 APPLICATIONS OF TAX, AND 2462, REFUNDS OF EXCESS 18 CHARGES COLLECTED 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 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 16 Division For Board of 17 Equalization Staff: Andrew Kwee Tax Counsel III 18 Legal Department 19 Bradley Heller Tax Counsel IV 20 Legal Department 21 ---oOo--- 22 Speaker: Brenda Narayan MuniServices 23 ---oOo--- 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JANUARY 26, 2016 4 ---oOo--- 5 MS. RICHMOND: Our next matter is Item F2, 6 Proposed Adoption of Prepaid Mobile Telephony 7 Services Regulations 2460, Administration, 2461 8 Exemptions, Deductions, Credits, and Specific 9 Applications of Tax, and 2462, Refunds of Excess 10 Charges Collected. 11 MR. HORTON: Members, we have a witness 12 here before us, Ms. Brenda Nariana (verbatim) -- 13 MS. NARAYAN: Narayan. 14 MR. HORTON: -- Narayan, with MuniService. 15 Welcome -- 16 MS. NARAYAN: Thank you. 17 MR. HORTON: -- to the Board of 18 Equalization. 19 MS. NARAYAN: Good evening. 20 MR. HORTON: Ma'am, we'll hear from the 21 Department. The Department will introduce the 22 matter, and then we'll come back and accept your 23 testimony. 24 MS. NARAYAN: Thank you. 25 MR. KWEE: Yes. Again, I'm Andrew Kwee, 26 and with me is Brad Heller from the Legal 27 Department. 28 We request that the Board vote to adopt 3 1 proposed Regulations 2460, Administration, 2461, 2 Exemptions, Deductions, Credits, and Specific 3 Applications of Tax, and 2462, Refunds of Excess 4 Charges Collected. 5 The proposed regulations implement, 6 interpret, and make specific the application of the 7 Prepaid Mobile Telephony Services Surcharge 8 Collection Act and the Local Prepaid Mobile 9 Telephony Services Collection Act. 10 We are available for any questions if the 11 Board Members have any. 12 MR. HORTON: Thank you. 13 This one, too, Members, I have a similar 14 concern, 17200 concerns about the overcollection of 15 taxes inappropriately and the fulfillment of our 16 obligation to notify the cities about the option in 17 AB 1717 provision in order to collect these 18 revenues. 19 But, that being said, let's hear from our 20 witness. 21 ---oOo--- 22 BRENDA NARAYAN 23 ---oOo--- 24 MS. NARAYAN: Thank you. Good evening, 25 Mr. Chair and Board Members. I'm Brenda Narayan 26 representing MuniServices. 27 Our public agency clients include over 60 28 jurisdictions in the state with the UUT or Utility 4 1 User Tax. For the past five years we've worked 2 closely with various state, local, and industry 3 stakeholders on this issue. We especially 4 appreciate all the work that has been done by the 5 Board staff to implement this program. 6 MuniServices supported AB 1717 from 2014, 7 which is the law behind the regulation, and we're 8 pleased to support the final proposal. 9 The future of AB 1717 that has a 2020 10 sunset date will depend on keeping the costs of 11 implementation at a reasonable level. We are poised 12 to help to maintain reasonable costs in 13 collaboration with Board -- with the Board and our 14 clients. 15 And finally, we are excited that local 16 governments will have new collection mechanism in 17 place or prepaid wireless revenues. 18 Thank you. 19 MR. HORTON: Thank you very much. And 20 thank you, as well, MuniService for getting the word 21 out to all the cities -- 22 MS. NARAYAN: You're welcome. 23 MR. HORTON: -- and showing that they take 24 full advantage of these additional taxes revenue 25 that will come to the city. 26 MS. NARAYAN: Thank you. 27 MS. HARKEY: Even though we'll be blamed. 28 MR. HORTON: We didn't pass the law. 5 1 MS. HARKEY: I know, but BOE -- 2 MR. HORTON: I support it, clearly support 3 it, but -- 4 Is -- is there a motion, Members? 5 MS. HARKEY: So move. 6 MR. HORTON: Member Harkey moves to adopt 7 staff recommendation. Second by Member Stowers. 8 Without objection, Members, such will be 9 the order. 10 MR. HELLER: Thank you. 11 MR. KWEE: Thank you. 12 ---oOo--- 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 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 January 26, 2016 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 6 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: January 29, 2016 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL, CSR #9039 22 Hearing Reporter 23 24 25 26 27 28 7