STATE OF CALIFORNIA [tabbed right]{seal}

THOMAS M THORNHILL III
PO BOX 1755
NEVADA CITY CA 95959

Tax Year: 1997

We have received your request for administrative request for discovery and an administrative hearing.

An undocketed hearing may only be granted, when the request for a hearing is received within the period of time allowable as a protest (Revenue and Tax [sic] Code Section 19044). Since no assessment has been made on the 1997 tax year, no hearing can be provided.

Further your request for discovery is denied since we are a law administrative body and not a judicial agency. Rules for discovery should only follow judicial hearing process. The California Franchise Tax Board is not an "agency" as described in Government Code Section 11501(b) authorized to provide administrative hearingas before an administrative law judge pursuant to Government Code Section 11500. In addition, Government Code Section 11501(c), provides that, "This section shall become inoperative on July 1, 1997, and, as of January 1, 1998, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 1998, deletes or extends the dates on which it become inoperative and is repealed."

/s/ R L [signature appears photocopied]
Roger Lubiens
Filing Compliance Bureau
Telephone: (916) 845-4068