1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 REPORTER'S TRANSCRIPT 7 APRIL 24, 2018 8 9 10 11 12 13 ITEM K1 14 EXECUTIVE DIRECTOR'S REPORT; 15 ITEM K1.1 16 ORGANIZATIONAL UPDATE 17 18 19 20 21 22 23 24 25 26 27 REPORTED BY: Jillian M. Sumner 28 CSR NO. 13619 1 1 P R E S E N T 2 3 For the Board Equalization: 4 Honorable George Runner Chair 5 Honorable Fiona Ma 6 CPA, Vice Chair 7 Honorable Jerome Horton Third District 8 Yvette Stowers 9 Appearing for Betty T. Yee, State Controller 10 (per Government Code Section 7.9) 11 Joann Richmond 12 Chief Board Proceedings 13 Division 14 For Board of Equalization Staff: Dean Kinnee 15 Executive Director 16 17 ---oOo--- 18 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 APRIL 24, 2018 4 ---oOo--- 5 MS. RICHMOND: Our next item is Item K, 6 Other Administrative Matters; K1 is the Executive 7 Director's Report; K1.1, Organizational Update. 8 MR. RUNNER: Mr. Kinnee. 9 MR. KINNEE: Good morning, Chairman Runner, 10 Members. I'm Dean Kinnee, Executive Director. 11 This month's briefing provides updates on 12 the following topics: office space and leases for 13 Board Members; Legislative Budget Hearing for fiscal 14 year, 2018-19; Budget Change Proposal; and AB 102 15 year one milestones. 16 Office space leases for Board Members 17 offices. As you know, AB 102 declares that as 18 current leases expire, BOE Board Members are to be 19 moved into one state-owned building. 20 DGS and DOF are working with us to prepare 21 for the transition of outgoing and incoming Members 22 based on lease expiration dates. 23 Current leases are either already in soft 24 term or will be in soft term by the first half of 25 2019. We'll keep you informed as plans develop on 26 this matter. 27 MR. RUNNER: Okay. 28 MR. KINNEE: Legislative Budget Hearings 3 1 for -- 2 MR. RUNNER: Let me just ask -- I'll -- I'll 3 just -- let's take these one at a time. 4 Members, any questions on that issue? 5 MS. HARKEY: No. I know mine's up in '19. 6 MR. RUNNER: Okay. 7 MR. KINNEE: Legislative Budget Hearings for 8 fiscal year 2018/2019. As you know, Budget Hearings 9 are in process. The Assembly Budget Subcommittee 10 No. 4 was held on April 10th, and the Senate Budget 11 and Fiscal Review Subcommittee No. 4 occurred on 12 April 12th. 13 The BOE agenda item focused on staffing 14 levels for Board Members' offices. Chairman Runner 15 and Vice Chair Ma, along with chiefs of staff for 16 Mr. Horton and Mrs. Harkey's offices spoke at the 17 hearing to convey the impact of AB 102, and the 18 pending budget acts on their staff, both civil 19 service and exempt employees. 20 A significant component of discussion was 21 related to the need for a personnel action plan that 22 would specify the options for impacted employees. 23 We are working with CalHR and CDTFA to 24 create a specific course of action for impact 25 employees. We will, of course, keep the employees 26 and you up to date. 27 I'd like to note that our and Legislature's 28 expectation is that the plan will allow adequate time 4 1 to provide specific information to each impacted 2 employee prior to July 1, 2018. 3 MR. RUNNER: Okay. 4 I want to thank each of the Members who were 5 there, and also staff that was there. I think it was 6 a -- I think we presented our case as well, and I 7 think we had enough good examples. And hopefully the 8 Legislature is considering the issues to help 9 continue the transitions that were initiated last 10 year. 11 Any other questions on that? 12 MS. HARKEY: Since there's three senators 13 that will probably come over and sit here, I'd expect 14 it to go well in the Senate. 15 MR. KINNEE: Thank you. 16 MR. RUNNER: Okay. 17 MR. KINNEE: BOE Budget Change Proposal. 18 We've submitted a Budget Change Proposal 19 requesting budget and staff resources to address the 20 gaps identified following the transition of 21 employees, equipment, property and funding from BOE 22 to CDTFA. 23 The positions requested will address our 24 existing personnel gaps in the Legal Department, the 25 Alcoholic Beverage and Insurance Tax programs, and 26 web service and information security areas. 27 I'd like to note that at this stage of the 28 budget process, the Department of Finance treats BCPs 5 1 as confidential material. We can, of course, provide 2 you with more details later. 3 MR. RUNNER: Okay. Thank you. 4 MR. KINNEE: And then finally, as we're soon 5 approaching the one-year milestone of AB 102, the 6 Taxpayer Transparency and Fairness Act of 2017, we 7 have a good -- we've made good progress standing at 8 the post AB 102 BOE; however, there's much more to 9 get done. 10 Our work plan for the remainder of this 11 calendar year includes, but is by no means limited 12 to, redesigning our Internet public-facing Web site 13 to reflect the BOE's current mission and 14 responsibilities to ensure that our taxpayers and 15 citizens have access to the information they need; 16 redesigning our Internet to provide our employees 17 with full access to the BOE system, and to the 18 information relevant to their needs; updating our BOE 19 policies to reflect the post AB 102 BOE, and 20 separating and transferring our historical records, 21 files, publications, and other documents from CDTFA 22 back to the BOE. 23 I'd like to thank staff and the managers for 24 their cooperation and support during the first year 25 of transition. We've adapted an "all hands on deck" 26 approach in dealing with the many, many issues that 27 have come up with transition. 28 Staff's done an excellent job in helping us 6 1 craft the path forward. And I appreciate their 2 teamwork and commitment to BOE's success. 3 This concludes my report. 4 MR. RUNNER: Any questions to the Executive 5 Director? 6 MS. HARKEY: No. Thank you. 7 MR. RUNNER: Okay. 8 ---o0o--- 9 10 11 12 13 14 15 16 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, Jillian Sumner, Hearing Reporter for 8 the California State Board of Equalization, certify 9 that on October 23, 2018 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 14 constitute a complete and accurate transcription of 15 the shorthand writing. 16 17 Dated: April 11, 2019 18 19 20 ____________________________ 21 JILLIAN SUMNER, CSR #13619 22 Hearing Reporter 23 24 25 26 27 28 8