1      BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                        450 N STREET

            3                   SACRAMENTO, CALIFORNIA

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            7                    REPORTER'S TRANSCRIPT

            8                       AUGUST 30, 2016

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           12                           ITEM F

           13                       PUBLIC HEARING

           14                             F1

           15          PROPOSED AMENDMENTS TO SALES AND USE TAX 

           16       REGULATION 1702.5, RESPONSIBLE PERSON LIABILITY

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           27                      REPORTED BY:  Kathleen Skidgel 

           28                                     CSR NO. 9039




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            1                        P R E S E N T

            2             

            3    For the Board               
                 of Equalization:          Fiona Ma, CPA
            4                              Chairwoman
                 
            5                              Diane L. Harkey
                                           Vice Chair
            6    
                                           Jerome E. Horton
            7                              Member
                 
            8                              Sen. George Runner (Ret.)
                                           Member                   
            9    
                                           Yvette Stowers 
           10                              Appearing for Betty T.  
                                           Yee, State Controller   
           11                              (per Government Code 
                                           Section 7.9)
           12    
                                           Joann Richmond 
           13                              Chief 
                                           Board Proceedings       
           14                              Division
                 
           15    For Staff:                Christine Bisauta Castillo
                                           Tax Counsel III
           16                              Legal Department
                 
           17                              Bradley Heller
                                           Tax Counsel IV
           18                              Legal Department
                 
           19                          ---oOo---

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            1                               450 N STREET

            2                               SACRAMENTO, CALIFORNIA

            3                               AUGUST 30, 2016

            4                          ---oOo--- 

            5             MS. MA:  The meeting of the Board of 

            6    Equalization is now hereby convened.  

            7             Ms. Richmond, please introduce our next 

            8    item.  

            9             MS. RICHMOND:  So our next item is Item F 

           10    Public Hearing; Item F1 Proposed Amendments to Sales 

           11    and Use Tax Regulation 1702.5, Responsible Person 

           12    Liability.  

           13             MS. BISAUTA CASTILLO:  Good afternoon, 

           14    Chairwoman Ma and Members of the Board.  I'm 

           15    Christine Bisauta Castillo from the Board's Legal 

           16    Department, and next to me is Bradley Heller who's 

           17    also from the Board's Legal Department.  

           18             We are here to request that the Board vote 

           19    to adopt the proposed amendments to Regulation 

           20    1702.5, Responsible Person Liability.  

           21             The proposed amendments provide 

           22    clarification and guidance regarding the 

           23    requirements for imposing personal liability.  

           24             The proposed amendments require staff to 

           25    have evidence to satisfy those requirements before 

           26    issuing a Notice of Determination.  

           27             And finally, the proposed amendments ensure 

           28    that staff's efforts in pursuing personal liability 




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            1    are more focused on those persons whom prior 

            2    experience has shown are generally found to be 

            3    personally liable based on the evidence.  

            4             MR. HORTON:  Move adoption of staff 

            5    recommendation.  

            6             MR. RUNNER:  Second.  

            7             MS. MA:  Okay.  Mr. Horton moves staff 

            8    recommendation.  Mr. Runner seconds.  

            9             Without objection, motion carries.  

           10                          ---oOo---

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            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 30, 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 4 constitute 

           14    a complete and accurate transcription of the 

           15    shorthand writing.

           16    

           17    Dated:  September 6, 2016

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           20                           ____________________________

           21                           KATHLEEN SKIDGEL, CSR #9039

           22                           Hearing Reporter

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