It is scheduled to be operative January 1, 2004. At the discretion of the State Board of Equalization (SBE), and consistent with the efficient use of audit resources, taxpayers who meet the following criteria could be considered candidates for a managed audit starting in January. The criteria are: 1.)Persons whose business involves few or no statutory exemptions; 2.)Persons whose business involves a single or small number of clearly defined taxability issues; 3.)Persons who agree to participate in the managed audit program; and 4.)Persons who have the resources to comply with the managed audit instructions provided by the Board. (Sec. 7076.1 and California Legal Summary, 2003)