Thank you for the warning!   Otherwise I would have filed the returns wrong!!  I finally found a California publication with two examples that match my taxpayers' situations.  Bizarre that the tax priority hotline people in CA do not know the tax law. 

Anyway, it looks like I can allocate all of the SE net income, SE Tax and SE AGI Adjustment to the husband who was the sole proprietor.  My E&O insurance and  I can't thank you enough!!  CA Publication 1031 is entitled "Guidelines for Determining Resident Status" which is why I didn't look at it earlier.  Luckily, it had the two examples of full time MFS residents of CA in it!