THE SENATE COMMITTEE ON BANKING
AND FINANCIAL INSTITUTIONS WILL
COME TO ORDER GOOD AFTERNOON THE
SENATE CONTINUES TO WELCOME THE
PUBLIC IN PERSON AND VIA
TELECONFERENCE SERVICE FOR
INDIVIDUALS WISHING TO PROVIDE
PUBLIC COMMENT AT FOR TODAY'S
PARTICIPATION- IF THEY CAN CALL
IN AT. 877-226-8216 AND THE
ACCESS CODE IS. SIX TWO ONE
SEVEN ONE SIX TWO. WE ARE
HOLDING OUR COMMITTEE HEARINGS
HERE IN THE- STREET BUILDING AND
ASK ALL MEMBERS OF THE COMMITTEE
AT TO PLEASE BE PRESENT- IN ROOM
TWENTY ONE HUNDRED SO THAT WE
CAN ESTABLISH QUORUM AND BEGIN
OUR HEARING WE DO HAVE SIX BILLS
ON THE AGENDA TODAY AND- WE
DON'T HAVE QUORUM YET SO- WE
WILL HOLD OFF ON CALLING ROLE-
AND I THINK THAT WE DO HAVE OUR
FIRST AUTHOR HERE WE WELCOME-
SENATOR SKINNER AND WE WILL
BEGIN AS A SUB COMMITTEE UNTIL
WE ARE ABLE TO REACH QUORUM.
WELCOME SENATOR SKINNER YOU MAY
PRESENT TO SB FIFTY FOUR WHEN
YOU ARE READY ONE SECOND I TO MY
GLASSES.
I HAVEN'T FIGURED OUT HOW TO
HAVE SUPERVISION YET. I THANK
YOU MADAM CHAIR AND MEMBERS SB
FIFTY FOUR DEALS WITH THE FACT
THAT WE ARE FINDING NOW. THAT
ARE. INVESTORS THAT ARE THE
LIFEBLOOD OF START UPS AND
ENTREPRENEURS. AHRAM ARE NOT
INVESTING IN WOMEN OWNED FIRMS
OR MINORITY OWNED FIRMS BUT
SPECIFICALLY BLACK OWNED FIRMS.
CALIFORNIA'S ALL OF US KNOW IS
BEEN VERY PROACTIVE IN PROMOTING
DIVERSITY AND INCLUSION. IN THE
INCLUDING IN THE CORPORATE IN
THE FINANCIAL SECTOR WE'VE ALSO
LED THE NATION IN PAY EQUITY
WHICH WE STILL KNOW REMAINS AN
EQUAL FOR WOMEN AND PEOPLE OF
COLOR. BUT AS I REFERENCED THOSE
WHO CHOOSE THE PATH USED THEIR
ENTREPRENEURIAL SKILLS RATHER
THAN BEING AN EMPLOYEE TO LAUNCH
A START UP A NEW ENTERPRISE.
CAPITAL INVESTMENTS SPECIFICALLY
VENTURE CAPITAL INVESTMENT IS
THEIR LIFELINE. BUT IF YOU ARE A
WOMAN LEAD OR A BLACK LED START
UP SUCH INVESTMENTS DON'T COME
YOUR WAY SO LET ME GIVE YOU THE
SPECIFIC ON. STATISTICS ON THIS
PITCHBOOK WHICH TRACKS VENTURE
INVESTMENTS FOUND THAT FEMALE
FOUNDED STARTUPS RECEIVED ONLY
TWO POINT 3% OF VENTURE CAPITAL
INVESTMENTS IN TWENTY TWENTY.
AND THAT PERCENTAGE WENT THE
WRONG DIRECTION THE YEAR AFTER
IN TWENTY TWENTY ONE IT DROPPED
RATHER TWENTY TWENTY TWO A DROP
TO ONE POINT 7% I'M THE SAME
REPORT FOUND THAT THE VENTURE
CAPITAL FIRMS THEMSELVES ARE NOT
MADE UP THE DECISION MAKERS IN
THEM DON'T HAVE VERY MANY WOMEN
OR BLACKS. 8% OF DECISION MAKERS
OF VENTURE CAPITAL FIRMS ROMAN
3% DECISION MAKERS WERE BLACK
DID THAT AFFECT THE DECISION WE
DON'T REALLY KNOW BUT WHAT I'M
MORE INTERESTED IN IS MAKING
SURE THAT WOMEN LED STARTUPS AND
BLACK OWNED AND OTHER MINORITY
LED STARTUPS. CAN COMPETE FAIRLY
AND- ATTRACT VENTURE CAPITAL
INVESTMENTS. LAST YEAR WE
ENACTED THE CHAIRS BILL SB
ELEVEN SIXTY TWO. FOR TO TRY TO
MAKE SURE THAT WE WOULD IN A
ACHIEVE THE GENDER PAY EQUITY
THAT WE'VE BEEN WORKING ON AND
WE DID THAT BY TRANSPARENCY BY
HAVING EMPLOYERS REPORT AND SHOW
PUBLICLY. THE OF POSITIONS AND
WHAT THE PAY WAS SO YOU COULD
HOLD THEM ACCOUNTABLE IF YOU ARE
NOT BEING PAID WHAT YOU'RE
WORTH. SB FIFTY FOUR THE BILL
BEFORE YOU IS VERY SIMILAR IT
SIMPLY REQUIRES VENTURE CAPITAL
FIRMS TO REPORT ON THE DIVERSITY
OF THEIR INVESTMENTS TO OUR
DEPARTMENT OF FINANCIAL
PROTECTION IN INNOVATION. WHO
WILL MAKE THESE REPORTS THAN
PUBLICLY ACCESSIBLE SO THEN WE
CAN SEE WHETHER THE VENTURE
CAPITAL INVESTMENTS ARE THEY ARE
THEY RESPECTING THAT DIVERSITY
IN TRYING TO INCREASE THE-
NUMBER OF BLACK AND- WOMEN LET
ALONE A START UPS WHICH OF
COURSE IS BENEFICIAL FOR THE
ECONOMY- OR ARE THEY NOT. SO
IT'S PURELY A DISCLOSURE
TRANSPARENCY MEASURE AND I WOULD
LIKE TO INTRODUCE MIGHT- WITNESS
IN SUPPORT WHO IS ALSO FROM THE
SPONSORING ORGANIZATION WHICH IS
THE F. FIVE COLLECTIVE. AND MY-
WITNESS IS MARQUESA FINCH AND
WHILE THE WITNESS IN SUPPORT
COMES UP- WE HAVE ESTABLISHED
QUORUM SO I AM GOING TO ASK A
FOR THE ROLE TO BE CALLED SO WE
CAN OFFICIALLY- TAKE ABOUT. SURE
YOUR NAME IS MORE CASE SO I.
ANYWAY CENTER LIMÓN. HERE LIMÓN
HERE THE LOW HERE. HERE HERE
BRADFORD. BRADFORD HERE
CABALLERO. CAMBIADO HERE MAN
YOUR MEN HERE WHEN. PORTANTINO
PORTANTINO HERE. GREAT WE HAVE
ESTABLISHED QUORUM YOU MAY
PROCEED WITH YOUR TESTIMONY IN
SUPPORT. RIGHT. I'M SORRY SHOULD
BE GETTING. THERE WE ARE OKAY. I
MYSELF HAVE. AGAIN GOOD
AFTERNOON MEMBERS OF THE
COMMITTEE MY NAME IS MARK HAS
SUSPENSION I'M THE FOUNDING
PARTNER OF A FIVE COLLECTIVE WE
ARE A VENTURE FUND AND WE INVEST
SOLELY IN FEMALE FOUNDERS. OUT
WOMEN ARE ONE OF THE MOST UNDER
FUNDED GROUPS WHEN IT COMES TO
VENTURE BACKED STARTUPS. DESPITE
OUTPERFORMING THEIR ALL MALE
COUNTERPARTS BY SIXTY THREE
PERCENT. WE BELIEVE THAT NOT
ONLY IS INVESTING IN WOMEN GOOD
FOR SOCIETY IT'S GOOD FOR
MARKETS BUT IT'S ALSO A GREAT
RETURN ON INVESTMENT. I AM ALSO
THE CEO AND CO FOUNDER.
FINANCIAL TECHNOLOGY STARTUP
THAT HELPS DIVERSE ENTREPRENEURS
FROM ALL BACKGROUNDS REYES
CAPITAL. MANY TIMES THESE
FOUNDERS FIND DIFFICULTY IN
RAISING FROM TRADITIONAL VENTURE
CAPITALISTS ASSEMBLY BECAUSE
THOSE INVESTORS DON'T COME FROM
THE COMMUNITIES THEY'RE TRYING
TO BUILD FOR- SO WHAT WE DO UP
HERE IN IS THAT WE CONVERT THOSE
COMMUNITIES IN TO INVESTORS. VIA
A PROCESS CALLED EQUITY
CROWDFUNDING. I'M SO I SENATOR
SKINNER SKINNER OUTLINES A
DISSEMINATION OF CAPITAL TO
FEMALE FOUNDERS AND
ENTREPRENEURS OF COLOR AND OTHER
DIVERSE INSPIRATIONS IS WOEFULLY
LACKING WITHIN INSTITUTIONAL
VENTURE CAPITAL. AND IT HAS BEEN
FOR DECADES AND IT CONTINUES TO
WORSEN. SO FOR ME ASIDE FROM
BEING A VENTURE CAPITALIST AND
FOUNDER I AM ALSO A BAY AREA
NATIVE I'M A TECHNOLOGIST I HOLD
GRADUATE AND POSTGRADUATE
DEGREES I AM ALSO OF AFRICAN
AMERICAN AFRICAN AMERICAN
FILIPINO HERITAGE. I FEEL
TECHNOLOGY FOR LARGE ENTERPRISES
AND FOR START UPS FOR ELEVEN
YEARS AND I'VE ALSO BEEN PART OF
THE INVESTMENT COMMITTEES THAT
HAVE FUNDED MANY TALENTED
ENTREPRENEURS. FOR THE LAST
SEVEN YEARS AND YET DESPITE MY
EXPERIENCE I STILL FACE BARRIERS
TO FUNDING. WHEN SPEAKING TO
INVESTORS I AM OFTEN MISTAKEN
FOR THE SUPPORT STAFF. THE
VALIDITY OF MY VENTURE AND OR MY
QUALIFICATIONS. IN IN PITCHES IN
QUESTIONS IN PITCHES- CONVEY THE
EXPRESSION OF DOUBT IN THE LINE
OF QUESTIONING. IT'S A STARK
CONTRAST TO LINE OF QUESTIONING
THAT MY WHITE MALE COUNTERPARTS
GET WHERE THEY'RE QUESTIONS ARE
MORE ROOTED IN POTENTIAL. AND
EXCITEMENT. FURTHERMORE THERE IS
CREDIBILITY AROUND BEING A
BUILDER OF FINANCIAL PRODUCTS AS
A WOMAN I'M EXPECTED TO BE
BUILDING PRODUCTS IN BEAUTY. OR
FASHION OR FOOD. THE SERBIAN
ENTREPRENEURS ALREADY
FINANCIALLY AND EMOTIONALLY
TAXING- BUT THEN TO HAVE TO
BATTLE WHAT SEEMED LIKE A
MILLION AND ONE MISCONCEPTIONS
ABOUT MY ABILITY TO SUCCEED. IS
WHAT WIDENING THE EQUITY GAP IN
ENTREPRENEURSHIP. THERE IS NO
DOUBT THAT THE SUCCESS OF
SILICON VALLEY ATTACK END OF
ENTREPRENEURSHIP HAS HELPED
CALIFORNIA THRIVE BUT- THAT
WE'RE MISSING SO MANY
CALIFORNIANS AND SO MANY
ENTREPRENEURS IN THAT PROCESS I
DON'T KNOW IF WE CAN REALLY CALL
IT. WRITING I'M SORRY HERE TO
EXPRESS MY SUPPORT OF SB FIFTY
FOUR IN AN ATTEMPT TO BRING MORE
TRANSPARENCY AROUND DIVERSITY
WITHIN VENTURE BACKED FOUNDERS.
AND EMPOWER THE LARGER VENTURE
COMMUNITIES HAVE ACCESS TO THE
BIGGER PICTURE WHEN IT COMES TO
CREATING BETTER OUTCOMES. THANK
YOU. THANK YOU. DO WE HAVE ANY
ADDITIONAL WITNESSES IN SUPPORT
IF WE DO I WOULD LIKE TO WELCOME
YOU TO PLEASE COME UP TO THE
MICROPHONE AND STATE YOUR NAME
YOUR- AND YOUR POSITION ONLY. R.
EIGHT C. NO ADDITIONAL WITNESSES
IN SUPPORT I DO WE HAVE ANY
WITNESSES IN OPPOSITION. I SEE
NO WITNESSES IN OPPOSITION IN
THE ROOM MODERATOR DO WE HAVE
ANY WITNESSES IN SUPPORT OR IN
OPPOSITION- ON THE LINES OF SO
COULD WE ASK THEM TO BE ON THE
QUEUE. FOR SB. FIFTY FOUR. OKAY
MODERATOR. DO WE HAVE A
MODERATOR. I MEAN FOR WHATEVER
REASON HE DOESN'T. THE NEW. ALL
RIGHT- WE WILL GO BACK TO THE
MODERATOR- I THINK WE'RE HAVING
SOME TECHNICAL ISSUES- BUT-
MEMBERS WE WILL OPEN IT UP FOR
ANY DISCUSSION OR COMMENTS.
THANKS FOR ANY OF. THANK YOU
MEDICARE- CENTER SKINNER PERHAPS
I LIVE IN AN ALTERNATIVE
UNIVERSE- BUT I AM INTIMATELY
FAMILIAR WITH. AT LEAST THREE
VENTURE FUNDS HERE IN THE
SACRAMENTO REGION. AND THERE ARE
SEVERAL WOMEN OWNED BUSINESSES
BEING FUNDED BY- THESE VENTURE
FUNDS THERE'S ALSO A- A BLACK
ENTREPRENEUR IN SACRAMENTO WHO-
HAS BUILT TO FIND AND
SPECIFICALLY TARGETS BLACK OWNED
BUSINESSES I'M AT THE MOMENT
FORGETTING HIS NAME I CAN FIND
THAT OUT. BUT MY PERSONAL
EXPERIENCE IS COMPLETELY
CONTRARY TO WHAT YOU DESCRIBE
I'M NOT DOUBTING WHAT YOU SAY
IT'S JUST- IT'S TOTALLY
DIFFERENT THAN MY EXPERIENCE AND
MY KNOWLEDGE IS VERY DETAILED
AND INVOLVED WITH REGARD TO
THESE FUNDS- HERE SO IT JUST
SEEMS TO ME. UNNECESSARY DETAIL
. CERTAINLY ALL OF US HAVE
ANECDOTAL EXPERIENCES NINER
ANECDOTAL THOSE ARE REAL I'M
SORRY IT'S UNDERSTAND THAT THIS
IS NOT AND IT DOES TRUE IT'S
TRUE THERE'S A REAL EXPERIENCES
BUT WHEN I MET MORE IS THAT THEY
CAN BE ANECDOTES TO WHAT THE
DATA SHOWS. AND I'M HAPPY TO
HEAR THAT THERE ARE SOME WOMEN
LED FIRMS THAT ARE GETTING THAT
VENTURE CAPITAL AND AS I STATED
THERE ARE SOME PERCENT THAT ARE
BUT IT'S TINY. AND PERHAPS THE
SACRAMENTO REGION IS BETTER THAN
OTHERS THE DATA I GAVE WAS
NATION WIDE BUT WHEN WE LOOK AT.
NOT THAT ALL FOUNDERS BECOME THE
CEOS BUT YOU KNOW WHICH IS STATE
REPRESENTATIVE WHEN YOU LOOK AT
THE NUMBER OF FEMALE CEOS DID
START ITS PALTRY IT'S HARDLY
ANY. AND WHICH YOU KNOW IS IT
ONLY BECAUSE WOMEN FLOOD-
ORGANIZATION- WOMEN LEAD- FIRMS
DIDN'T GET THE VENTURE CAPITAL.
WHO KNOWS BUT IT'S CONNECTED AND
I THINK WHAT- NO I THINK WHAT
I'M TRYING TO DO HERE IS BY THIS
TRANSPARENCY. AND IT UP AND WE
HAVE A WE HAVE HAD A NUMBER OF
TIMES CALIFORNIA IS AN ACTIVE
POLICY TO GET MORE. WOMEN AND
PEOPLE OF COLOR ON CORPORATE
BOARDS WE HAVE AN ACTIVE POLICY
FOR PAY EQUITY WE'VE DONE A
VARIETY OF THINGS THAT BY JUST
GETTING MORE. WOMEN AND PEOPLE
OF COLOR INTO THESE ROLES
WHETHER IT'S ON CORPORATE BOARDS
WHETHER IT'S IN FIRMS WITH
REGARDS WHAT IS THEN THERE
BECOMES MORE THAT COMFORTABLE
WITTY WHICH CAN HELP TO LEAD TO
THAT INVESTMENT. BUT THE DATA
WHICH I DIDN'T SITE SHOWS THAT
THESE. THIS LACK OF INVESTMENT
WAS REGARDLESS OF AS OUR WITNESS
DESCRIBED THE EXPERTISE OF THE
PARTICULAR FEMALE FOUNDER THE
TRACK RECORD THE VIABILITY OF
THEIR BUSINESS PLAN. OF A
VARIETY OF THINGS LIKE THAT AND
SO LIKE I SAID I'M VERY HAPPY TO
HEAR. THAT THERE IS VENTURE
INVESTMENT HERE IN THIS AREA IN
WOMEN LED FIRMS. AND THAT WAS MY
GOAL TO HAVE THAT EXPANDED AND
THIS IS NOT A MANDATE IN TERMS
OF REQUIRING A CERTAIN PERCENT
OF INVESTMENT GO TO THOSE SUCH
FIRMS IT IS PURELY THE ABILITY
TO HAVE TRANSPARENCY SO WE CAN
TRY TO HOLD THEM ACCOUNTABLE AND
WE CAN TRY TO. HELP THESE KIND
OF DEBATE. THANK YOU SENATOR AND
WE HAVE A SENATOR MAN AND I JUST
TO WANT TO TELL EVERYONE THERE
MAY BE A CHANCE THAT WE WILL
NEED TO TAKE THEM. ASIDE AS A
TWO MINUTE RECESS IF WE CAN'T
FIGURE OUT THE TECHNICALITIES
ARE JUST ONE FOR PERFECT SO
SENATOR MAN. THANK YOU SO- IN
ACADEMIA WHERE I USED TO BE
THERE IS A SAYING THAT WE OFTEN
USE THAT THE PLURAL OF ANECDOTE
IS NOT DATA- AND SO I IN IT DOES
CAN CAN BE INFORMATIONAL. IF THE
DATE IS OVERWHELMING THAT THAT
IS WHAT IT IS NOW I THINK THIS
BILL IS AN IMPORTANT ONE BECAUSE
IT IS IF CENTER NAY LOOK RIGHT
THAT THIS IS SOMETHING. THAT IS
NOT A PROBLEM I THINK THIS BILL
WILL ACTUALLY HELP ON EARTH
THAT. IF HOWEVER IT DOES CONFIRM
THAT THERE IS SYSTEMIC BIAS
AGAINST CERTAIN CLASSES OF
PEOPLE IN. STANDING FIRMS IN
LEADERSHIP AND THEN WE CAN START
TO DIG OUT THE DATA SO I THINK
THIS IS AN IMPORTANT BILL TO
START HELP DETERMINING. HI IT
ARE THOSE ANECDOTES CORRECT OR
OR IS THERE DIFFERENT PICTURES
THIS IS ON THIS THE AUTHOR-
PORTRAYS SO- WITH THAT SINCE
I'VE COOPER YOUR LAST TWO BILLS
THAT I'VE HEARD I'LL- REQUEST A
CO AUTHOR THIS ONE AT THE
APPROPRIATE TIME AS WELL.
MEMBERS AND- DUE TO THE TO THE
TECHNICALITY THAT WE HAVE WE DO
HAVE TO ACTUALLY RECESS FOR
REALLY JUST- HOPEFULLY NO MORE
THAN. TWO MINUTES. I BUT WE WILL
CONTINUE THE CONVERSATION WE
JUST WANT TO ALLOW FOLKS. ON THE
PHONE LINES TO- PARTICIPATE IT
ACCORDINGLY. SO WE WILL RECESS
FOR REALLY JUST A FEW SECONDS AS
SOON AS WE CAN GET THE MODERATOR
ON THE LINE. WE ARE HERE I'M
HERE. WE DISCONNECTED YOUR ROOM
THANK YOU ALL RIGHT WELL THERE
YOU GO MEMBERS WE- ARE WE'RE
GONNA LIST THE CALL FROM RECESS
TO- GLAD THAT ALL HAPPENED HERE
AND NOW. THE SENATORS SKINNER
DON'T GO ANYWHERE BECAUSE WE ARE
NOT AND WE WERE BACK FROM
RECESS. THERE WAS THAT QUICK.
SENATORS WE'RE BACK. WE'RE BACK
IT WAS THAT QUICK IT WAS MAGIC-
IT. AND SO I KNOW I SENATOR
BRADFORD HAS AS- COMMENTS OR
QUESTIONS. I TO COME I WELCOME
YOUR COMMENTS I JUST WANT TO
THANK. THE SENATOR FOR THIS
MEASURE AND I KNOW THERE MIGHT
BE EXCEPTIONS TO THE RULES BUT-
MAJORITY OF MY EXPERIENCE FOR
THE LAST TWENTY FIVE YEARS SAYS
THAT IT'S LACKING BOTH PEOPLE OF
COLOR. AND WOMEN. AND OUR
VETERANS AND NOT ONLY THE
FINANCIAL SPACE BUT ALMOST IN
EVERY. YOU KNOW ENTITY- IN
BUSINESS AND IN IN SEOUL THIS IS
GREATLY NEEDED AND I'VE LOST
TRACK OF THE NUMBER OF BILLS
THAT WE'VE HAD TO DO. SINCE I'VE
BEEN IN THE LEGISLATURE WHETHER
TO WOMEN ON CORPORATE BOARDS YOU
NAME IT. IN THE CONTINUE TO HAVE
TO ASSERT. OF GENDER AND RACE-
INTO MUCH OF WHAT WE DO BECAUSE
IT'S DEVOID. IT'S TRULY DEVOID
SO THERE ARE EXCEPTIONS TO THE
RULES BUT- WHETHER TO
CONTRACTING WHETHER IT'S
CANNABIS WHETHER IT'S WHEN YOU
NAME IT IT'S WHITE MALE
DOMINATED. AND ESPECIALLY IN THE
FINANCIAL INSTITUTION SO. I AM-
EXCITED ABOUT THIS BILL AND IF
WE ARE YOU WILL HELP ME OUT LEVY
ADDED AS A CO AUTHOR AS WELL.
APPLE TREE THANK YOU SEEN NO
OTHER QUESTIONS OR COMMENTS I AM
GOING TO NOW GO TO THE PHONE
LINES. MODERATOR THIS IS SB
FIFTY FOUR IF THERE ARE ANY
INDIVIDUALS ON THE PHONE LINES
EITHER WISHING TO TESTIFY IN
SUPPORT OR. OPPOSITION CAN WE
PLEASE Q. THEM. THANK YOU VERY
HERE INTO. OR OPPOSITION TO SB
FIFTY FOUR PLEASE PRESS ONE
EIGHT ZERO AT THIS TIME ONE
FILED BY ZERO. I WILL GIVE A
FINAL REMINDER PLEASE PRESS ONE
ZERO AT THIS TIME IF YOU ARE IN
SUPPORT. OR OPPOSITION TO SB.
FIFTY FOUR. I'M SURE NOBODY'S
GIVING UP THIS TIME ALL RIGHT
THANK YOU VERY MUCH SO AT WE
WILL BRING IT BACK AND I JUST
WANT TO THANK YOU FOR BRINGING
THIS FORWARD- A THINK THAT. THE
IN THE CONVERSATION ABOUT THIS
BILL I THINK IT'S REALLY
IMPORTANT AND WHEN YOU HEAR-
DIFFERENCES AND WHAT PEOPLE'S
LIVED REALITY IS AN EXPERIENCE
WITH THIS I ACTUALLY THINK IT
BEGS FOR REPORTING- SO THAT WE
CAN HAVE A GREATER CONVERSATION-
THAT IS BASED ON MULTIPLE
PERSPECTIVES MULTIPLE.
EXPERIENCES THAT OUR LIVES- BY
THE AGE OF INDIVIDUALS THAT WE
WHICH ARE SERVE AND THAT'S WHAT
THIS BILL DOES IT IS A
REPORTING- BILL- AND WE WILL GET
MORE INFORMATION NOT LESS AND I
THINK MORE INFORMATION CAN
INFLUENCE HOW WE MOVE FORWARD-
SO I WILL BE SUPPORTING THE BILL
AND I THINK YOU. FOR BRINGING
THAT FORWARD. WOULD YOU LIKE TO
CLOSE. I'M THANK YOU I
APPRECIATE IT I THINK I- MADE
SOME OF THE COMMENTS I MIGHT
HAVE OTHERWISE IN CLOSING AND
DURING OUR CONVERSATION AND
WITHOUT I WOULD JUST ASK FOR
YOUR VOTE. THANK YOU WE HAVE A
MOTION BY SENATOR MAN THIS IS SB
FIFTY FOUR THE MOTION IS DO YOU
PASS BUT FIRST REFERRED TO THE
COMMITTEE ON JUDICIARY- CAN WE
PLEASE CALL THE ROLL. MOTION IS
TO PASS BUT FIRST BE REFERRED TO
THE COMMITTEE ON JUDICIARY
SENATOR LIMÓN. AYE MON AYE NERO
NO. ME LO NO BRADFORD. BRADFORD
AYE CABALLERO. MAN MAN I WHEN.
PORTANTINO. WE HAVE THREE EYES
AND ONE NO AND WE WILL- LEAVE
THAT'S- ON CALL. THANK YOU AND
AS WE PREPARE TO HAVE SENATOR
DODD PRESENT WE WILL TAKE A
MOTION ON THE CONSENT CALENDAR
WE HAVE TWO BILLS IN THE CONSENT
CALENDAR SB FIVE THREE ONE BY A
CHIRLA BOOK AND- SB SIX SIX SIX
BY MEN. THE MOVE THANK YOU VICE
TOURNEY LOW HAS. MOVED THAT
CONSENT CALENDAR CAN WE PLEASE
CALL THE WRONG CONSENT. CENTER
LIMÓN AYE LIMÓN AYE HELLO HI THE
LOW AYE BRADFORD. BRADFORD AYE
GOT A YELLOW. MAN I'VE BEEN AYE
WHEN. PORTANTINO. FOUR ALL RIGHT
WE HAVE FOUR VOTES FOR THE
CONSENT CALENDAR WE WILL LEAVE
THE CALL. WE BELIEVE THAT THE
CALL OPEN THE ROLE OPEN AND NEXT
WE HAVE A SENATE'S BILL- EIGHT
TWO SEVEN EIGHT BY SENATOR JOHN
YOU CAN BEGIN WHEN YOU'RE READY
THANK YOU MADAM CHAIR MEMBERS
I'M PRESENTING SP TWO SEVEN
EIGHT PERTAINING TO ELDER
FINANCIAL ABUSE. SB TWO SEVEN
EIGHT CLARIFIES CALIFORNIA'S
ELDER FINANCIAL ABUSE STATUTE SO
THAT A PERSON OR ENTITY WHO
KNOWS WHO KNOWS OR SHOULD HAVE
KNOWN THAT IN THE OLDER
DEPENDENT ADULT IS SUBJECT TO
FINANCIAL ABUSE BUT FAILED TO
ACT IN A REASONABLE. AS A
REASONABLE PERSON MAY BE HELD
ACCOUNTABLE FOR ASSISTING IN THE
BUSE OF ACTIVITY. ELDER
FINANCIAL ABUSE IS EVERYWHERE
LOSSES EQUAL THREE BILLION
DOLLARS ANNUALLY ONCE A SENIOR
FALLS PREY TO FINANCIAL FRAUD
THEY MAY NEVER RECOVER. AS MANY
REPORTERS CARICA STUDY ENDS
INVESTMENT ADVISORS IN FINANCIAL
INSTITUTIONS ARE WELL POSITIONED
TO DETECT ELDER FINANCIAL ABUSE
AND TAKE IT TAKE ACTION TO
PROTECT ELDERS. UNFORTUNATELY
THE LANGUAGE OF CALIFORNIA'S
CURRENT FINANCIAL ELDER ABUSE
STATUTE IS NOT AS CLEAR AS IT
SHOULD BE. OR AS CLEAR AS IT
NEEDS TO BE FRANKLY- TYPICALLY
IN CASES WHERE THE VICTIM
ATTEMPTS TOLD SOMEONE WHO IS
ASSISTED THE FINANCIAL SCAM
ACCOUNTABLE THAT PERSON OR
ENTITY WILL CLAIM THEY CANNOT BE
LIABLE BECAUSE THEY DIDN'T HAVE
ACTUAL KNOWLEDGE OF THE ABUSE.
THIS IS A NEAR IMPOSSIBLE
STANDARD AND IT WAS NEVER. THE
INTENT OF THE LAW. WHAT IS
EXPECTED OF MANDATE REPORTER
BANDIED REPORTERS IF THEY KNOW
OR SHOULD HAVE KNOWN THE
FINANCIAL BUSE WAS TAKING A
PLACE. IN RESPONSE TO CONCERNS
RAISED BY BANKS AND CREDIT
UNIONS SB TWO SEVENTY EIGHT WAS
AMENDED. TO ADD SPECIFICITY
PERTAINING TO THE DEFINITION OF
ASSISTING AN ELDER FINANCIAL
ABUSE IN I BELIEVE ADEQUATELY
RESOLVED AT LEAST THAT CONCERT-
I AM. GETTING KINDA GO OFF THE
COFFEE CUP A LITTLE BIT- YOU'LL
HEAR IN THE TESTIMONY TODAY GETS
THIS BILL THAT- YOU KNOW SOME
ISSUES- YOU'LL NOT ONLY HAVE I
BEEN A- STAUNCH SUPPORTER OF
SENIORS MY WHOLE. CAREER AS A AS
AN ELECTED OFFICIAL INCLUDING
FOURTEEN YEARS AS A COUNTY
SUPERVISOR I'VE ALSO BEEN A BANK
BOARD MEMBER. HELLO COMMITTEE
MEMBER AND I DO SEE THE CONCERNS
OF THE- YOU KNOW THE BANKING
INDUSTRY I THINK WE KIND OF WENT
A LITTLE BIT SIDEWAYS AND
COMMUNICATION. THE LAST TIME WE
SPOKE AND I WAS KIND OF
EXPECTING TO HAVE SOMETHING-
SAID TO ME THAT WOULD. WORK BUT
I HAVE NOT RECEIVED THAT AND I
JUST IT IS ONE OF THE COMMITTEE
TO NOTE BEFORE THE CLOSE THAT
THE- THIS IS SOMETHING THAT I
INTEND TO WORK ON. THANK YOU
VERY MUCH US SENATOR DODD AND SO
WE WILL GO AHEAD AND WE WILL
MOVE TO THE FIRST WITNESS IN
SUPPORT. GOOD AFTERNOON MADAM
CHAIR AND THE MEMBERS MY NAME
ADDRESS IN AN N. AT RESIDENT OF
HAMBURG PHONE. I CAME. TO ASK
YOU SUPPORT FOR SENATE BILL TO
SEE. EIGHT I DIMMICK. HERE FOR
TAIWAN TO PUSH TO MAKE COUNTRY
IN. MY HOUSE I AGREE KISS AND WE
SIX MONEY. FORTY TWO. OFF TO MY
HOUSE PASSED AWAY TRY HA. TO
CARE FOR MY- AND OF MY ORDERS.
WHO IS ON THE CITY. LOS YEAR I'M
A CO INTO INTO A NIGHTMARE. I
FELT COME TO A SCAMMER WHO
CONNED WE ME TO Y. M. FOR EVEN.
SO I BEEN THROUGH THAT BANK WHO
ASKED WHY TO MANY. THE INCEL ASK
ME FOR. THEY JUST GET A MINUTE
THE APPROVAL BY OTAMENDI. I
THANK IN AGAIN AND THE AND NOT
GET. FOR LOS Y. OF TRANS. I SEE
TIMES BY THINK IN. AND THEN M.
OF MONEY IT WAY WAY UP WHY ARE
FOR MEDICAL. HOPELESSNESS WEEKS
. IF THE- HAS STOPPED THOSE Y.
MY LOS WERE BE. SEVENTY SIX
PUCELLE DOLLARS YOU FOR NOT WITH
DARK AND THEN FORCE Y. MIGHT
ALSO MADE. A NEED TO BE ALL OF
ONE HUNDRED SEVENTY SOUTH. EVEN
IF WE THAN SIX. HI LET MY LOST
WEIGHT SO YOU STEVEN HE'S DOLLAR
. IN THE END. I LOS ALL MY
THREE. OF A METER DOLLARS. S.
ALMOST ALL MY LIFE. I WILL A
LAWYER AND LONGED CUSTOMER MY
FACE. IF ONLY THE BANK HAD IS
JOHN. TWO POINT ALL THE THANK ME
DON'T BE SCARED I WOULD NOT BE
WHERE I AM NOW. A E. R. ALL
WITHOUT. LET TO PICK UP THE
PIECES ALL MY LIFE. HONESTY'S IS
HOW I WANTED AND IT ALL. NOW I
FINALLY TO THE END JUNE IN THIS
UP AGAIN. I WAS. BY THE- HEY
SCONCE. I HAD ORDERED LOST ALL
OF MY. BUT MOST MONEY I FOR MY
COLUMN AND THIS. THE THINKING OF
. THE I HAD TO PAY TAX CERTAIN
IS TERRIFYING. FOR SECOND TIME.
I THOUGHT ABOUT. KATIE MYSELF
BACK IN. HELLO ABOUT SENATE BILL
TO SAY EIGHT. GIVE ME A WHOLE. I
ALONG SIX MEDIA ARE THAT. WOULD
BE ABLE TO PEACE AND HAPPINESS
FOR THE DEMAND OF OUR LIFE. I
FEEL TO. THANK THAT SEVEN MONTHS
. OF ENERGY. AND F. TO BE HERE
BUT I'M HERE. I YOU SHE'S PLEASE
PASS FEEL BECAUSE HE'S HELPS US
. AND I YOU FOR YOUR TIME. THE
CARD YOUR- THANK YOU VERY MUCH
THAT. ADDITIONAL IN SUPPORT JUST
AS HE TO BE AWARE OF THE TIME
YES YEAH MADAM CHAIR MEMBERS MY
NAME IS CARISSA FISH I'M HERE
BEHALF OF THE BILL'S CO CONSUMER
OF. I'VE BEEN A LAW PROFESSOR
SINCE TWO THOUSAND NINE TEACHING
TOWARDS THE LEGAL RESEARCH AND
WRITING I'M ALSO ONE OF THE
AUTHORS OF CB'S BOOK ON
CALIFORNIA ELDER LAW LITIGATION
AS AN ATTORNEY FOR THE LAST
TWENTY YEARS I'VE DEDICATED MY
CAREER TO REPRESENTING ELDERS
AND DEPENDENT ADULTS WERE
VICTIMS OF PHYSICAL AND
FINANCIAL ABUSE. OVER THE YEARS
I'VE RECEIVED MANY HEARTBREAKING
CALLS EXACTLY LIKE MISS LIN I'M
RECOUNTING HOW THEY WERE
SWINDLED OUT OF THEIR LIFE
SAVINGS BY SCAMMERS FOR VARIOUS
REASONS INCLUDING TECH SUPPORT
LOTTERY GOVERNMENT IMPOSTER AND
CHARITY SCAMS AND THE RESULTS
THAT YOU AS YOU JUST HEARD
DEVASTATING AS IT'S VIRTUALLY
IMPOSSIBLE FOR THE ELDERS TO
EARN BACK THE MONEY THAT WAS
TAKEN FROM THEM DURING THEIR
LIFETIMES. AS A RESULT I'VE HAD
CLIENTS WHO'VE BECOME HOMELESS
OTHERS WHO HAVE BECOME DEPENDENT
ON FAMILY OR PUBLIC ASSISTANCE
ONCE THEIR SAVINGS WERE GONE.
AND FOR MANY THE WORRY FEAR
FINANCIAL DISTRESS IS TOO MUCH
TO BEAR- RESULTING IN SHARP
DECLINES IN MENTAL. AND PHYSICAL
HEALTH AND EVEN SUICIDE. IN
REPRESENTING DISTRICT OF
FINANCIAL ABUSE THE MOST
DIFFICULT LEGAL ISSUE IS
DETERMINING WHAT THE STANDARD IS
FOR HOLDING A PERSON LIABLE FOR
ASSISTING IN THE PEWS. AND
THAT'S BECAUSE WHILE THE INTENT
OF THE ELDER ABUSE ACT IS CLEAR
TO PROTECT THE STATE'S
VULNERABLE POPULATION FROM ABUSE
AND NEGLECT. THE LANGUAGE OF THE
STATUTE IS NOT MAKING IT
DIFFICULT FOR ALL PARTIES TO
KNOW WHAT IS REQUIRED TO PROVE
BECAUSE ACTION FOR ASSISTING AND
ABUSE. AND RESULTING IN
INCONSISTENT RULINGS AS
DIFFERENT JUDGES IN DIFFERENT
FORMS ATTEMPT INTERPRET THE LAW.
WHICH IS WHY SB TWO SEVEN EIGHT
IS SO IMPORTANT BECAUSE IT
PROVIDES MUCH NEEDED CLARITY AS
TO WHAT A VICTIM MUST PROVE IN
ORDER TO HOLD A MANDATED
REPORTER LIBEL. PERSISTING IN
FINANCIAL ABUSE WHETHER THEIR
CHARACTER STORY AND INVESTMENT
ADVISORS FOR FINANCIAL
INSTITUTIONS. FOR EXAMPLE ONE OF
MY CASES AFTER MANY YEARS OF
ROUTINE BANKING. AN EIGHTY FIVE
YEAR OLD SUDDENLY STARTED WHAT
REQUESTING WIRE TRANSFERS FROM
BANK. IN THE AMOUNT OF FORTY
NINE THOUSAND FIVE HUNDRED
DOLLARS EVERY OTHER DAY. THE
DIFFERENT INDIVIDUALS IN
THAILAND HE DID THIS TWENTY NINE
TIMES IN A TWO MONTH PERIOD WITH
NO QUESTIONS ASKED BY HIS BANK.
EVEN THOUGH IT WAS TOTALLY
UNCHARACTERISTIC FOR HIM. ONE
POINT FOUR MILLION DOLLARS LATER
HIS FAMILY FOUND OUT HE'D BEEN
THE VICTIM OF A TECH SUPPORT
SCAM. THE BANK ARGUED THAT UNDER
THEIR READING OF THE STATUTE
THEY COULDN'T BE HELD LIABLE FOR
ASSISTING IN THE ABUSE. BECAUSE
THEY DIDN'T HAVE ACTUAL
KNOWLEDGE OF THE SCAM. THIS BILL
WOULD GIVE AN ELDERLY VICTIM A
CHANCE TO PROVE THEIR CASE. BUT
IT DOES NOT IMPROVE INFANT AND
POSE STRICT LIABILITY THE VICTIM
MUST SHOW THAT THE DEFENDANT HAD
ACTUAL OR CONSTRUCTIVE
KNOWLEDGE. THAT THEIR CONDUCT
WAS LIKELY TO BE HARMFUL. AND
THAT THEY FAILED TO ACT AS A
REASONABLE PERSON IN A LIKE
POSITION WHERE. THOSE ARE
REASONABLE PERSON STANDARD IS
ONE THAT IS USED VERY COMMONLY
THROUGHOUT CONTRACT TORTS AND
CRIMINAL LAW. IT'S ALSO
IMPORTANT TO NOTE THAT THE BILL
DOES NOT CREATE A NEW PRIVATE
RIGHT OF ACTION. IT SIMPLY
CLARIFIES WHEN A PERSON OR
ENTITY WHO ASSISTED FINANCIAL
ABUSE MAY BE HELD ACCOUNTABLE.
IN SHORT SB TWO SEVEN EIGHT
CODIFIES WHAT MANDATED MANDATED
REPORTER SHOULD ALREADY BE
DOING. ACTING REASONABLY WHEN
THEY KNOW. OR SHOULD HAVE KNOWN
THAT ELDER ORDER PENDANT ADULT
IS A- OF FINANCIAL ABUSE. WHICH
ISN'T. CAN WITH THE STATE INTENT
OF OUR ELDER ABUSE BACK. FOR
THOSE REASONS I RESPECTFULLY
URGE YOU TO SUPPORT SB TWO SEVEN
EIGHT. THANK YOU THANK YOU. ANY
OTHER WITNESSES IN THE ROOM IN
SUPPORT PLEASE COME FORWARD
STATE YOUR NAME AFFILIATION AND
POSITION. VENTURE PATRON WITHIN
READING ASSOCIATES REPRESENTING
THE RETIRED PUBLIC EMPLOYEES
ASSOCIATION STRONG SUPPORT THANK
YOU. YOU. JOSH WITH THE BAY ON
THE OF THE CONSUMER FEDERATION
OF CALIFORNIANS SUPPORT. THANK
YOU. ROTH OVER TOLD KATHERINE
AND GEORGE ALEXANDER COMMUNITY
LAWCENTER AT SANTA CLARA
UNIVERSITY SCHOOL OF LAW. AND
THE SANTA CLARA COUNTY WHICH
THAT. COALITION IN STRONG
SUPPORT THANK YOU. GOOD MORNING
SHARON MEMBERS DANNY KENDALL
BECAUSE OUR ON BEHALF OF THE CO
SPONSORS OF THE BILL THE
CALIFORNIA LOW INCOME CONSUMER
COALITION. AND ELDER LAW ON
ADVOCACY AS WELL AS A NATIONWIDE
COALITION OF SUPPORTERS WITH
YOUR PERMISSION I'D LIKE TO READ
THE LIST OF NAMES. IF THAT'S
OKAY SO IT'S THE OTHER
SUPPORTERS RIGHT AS YOU CAN READ
THE LIST OF NAMES RATHER THAN
HAVING THEM CALL AND I THOUGHT.
LITTLE FASTER BUT SAID IT LEGAL
SERVICES CENTROLEGAL DOT ACROSS
OUR COMMUNITY LEGAL SERVICES
EAST PALO ALTO. LEGAL AID OF
MARIN LEGAL AID SOCIETY OF SAN
BERNARDINO LEGAL ASSISTANCE FOR
SENIORS. NATIONAL CONSUMER LAW
CENTER OPEN DOOR LEGAL PUBLIC
COUNCIL PUBLIC GOOD LAWCENTER
PUBLIC. REAP RIVERSIDE LEGAL AID
WATSONVILLE LAWCENTER. THANK YOU
VERY MUCH GREAT THANK YOU. RIGHT
SEE NO OTHER WITNESSES IN
SUPPORT WE WILL NOW HAVE THE
LEAD WITNESSES IN OPPOSITION
PLEASE COME FORWARD. GOOD
AFTERNOON MADAM CHAIR MEMBERS MY
NAME IS LAUREL SYKES I'M THE
EXECUTIVE VICE PRESIDENT AND
CHIEF RISK OFFICER AT AMERICAN
RIVIERA BANK- I'M HERE ON BEHALF
OF THE BANK AS WELL AS THE
CALIFORNIA COMMUNITY BANKING
NETWORK- WHERE COMMUNITY BANK
SERVING CALIFORNIANS IN THE
SANTA BARBARA AREA. AND I'M HERE
TODAY TO REGRETFULLY OPPOSE US
SENATE BILL TWO SEVENTY EIGHT
WHILE I'M PERSONALLY PASSIONATE
ABOUT THE ULTIMATE GOAL OF THE
BILL TO PROTECT SENIORS AND
DEPENDENT ADULTS FROM FINANCIAL
ABUSE. AS CURRENTLY DRAFTED IT
WILL HAVE SWEEPING NEGATIVE
CONSEQUENCES FOR THE VERY
POPULATION THAT IT'S INTENDED TO
PROTECT. INDIVIDUALS WORKING AT
FINANCIAL INSTITUTIONS MUST
ADHERE TO STRICT REGULATORY
REQUIREMENTS AS MANDATED
REPORTERS AND COMMUNITY BANKS
TAKE THIS VERY SERIOUSLY WHEN
OUR TELLER SUSPECT FINANCIAL
ABUSE THEY MUST REPORT IT EITHER
ADULT PROTECTIVE AGENCIES OR LAW
ENFORCEMENT AS SOON AS POSSIBLE
. SENATE BILL TWO SEVENTY EIGHT
SPECIFIES THAT A PERSON WHO IS
THIS IN TAKING SECRETING
APPROPRIATING OBTAINING OR
RETAINING PROPERTY FOR WRONGFUL
USE HAS COMMITTED FINANCIAL
ABUSE IF THE PERSON KNEW OR
SHOULD HAVE KNOWN THAT THIS
CONDUCT IS LIKELY TO BE HARMFUL
TO THE ELDER OR DEPENDENT ADULT.
IN MOST ELDER ADULT FINANCIAL
ABUSE CASES COMMUNITY BANKS HAVE
ACTUAL KNOWLEDGE BUT IS
TYPICALLY IMPOSSIBLE TO PREVENT
THE TAKING FOR SPENDING OF MONEY
WHEN ELDER HAS FALLEN PREY TO A
SCAM. IF ASSISTING IS SOLELY
THOSE ISSUES WERE A BANK
EMPLOYEE IS INVOLVED IN
FACILITATING COMMUNITY BANKS
WILL BE PUTTING IN A POSITION OF
DECIDING WHETHER OR NOT TO HONOR
THE REQUEST. AND HOW WOULD HAVE
BEEN DENIED SUCH A REQUEST WHEN
IT'S THE CUSTOMER'S MONEY AND
THEIR RIGHT TO ACCESS THE FUNDS.
IF THERE ARE SUSPICIONS BANKS
ALREADY HAVE AN OBLIGATION TO
REPORT WE FREQUENTLY HAVE
CUSTOMERS WHO WE SUSPECT ARE
VICTIMS OF FINANCIAL ABUSE. IN
THESE INSTANCES WE REPORT THE
SUSPECTED ABUSE ASSIST LAW
ENFORCEMENT AND SPEND MONTHS ON
EACH CASE ATTEMPTING TO CONVINCE
THE OLDER ADULT OF SUSPECTED
ABUSE. UNFORTUNATELY EVEN WITH
ALL OF THESE SAFEGUARDS AND EVEN
AFTER WE HAVE FLAGGED IT AND
INFORM THE CUSTOMER THAT WE
SUSPECTED IS FRAUDULENT. IF THE
CUSTOMER INSISTS ON THE
TRANSACTION WE MUST APPROVE IT.
IT IS IN THE BEST INTEREST OF
OUR CUSTOMERS ANNA FINANCIAL
INSTITUTIONS TO ENSURE THAT
TRANSACTIONS ARE NOT FRAUDULENT.
NO ONE WINS WHEN A TRANSACTION
SEEM FRAUDULENT AND UNDER
REGULATION E. AND THE NEW FAQS
THAT WERE ISSUED BY THE C. F. P.
B. AND TWENTY TWENTY ONE. BANKS
ARE ALREADY LIABLE FOR DEBIT
CARD AND ONLINE BANKING
TRANSACTIONS IF THE SENIOR
DIDN'T PERFORMER AUTHORIZES
TRANSACTIONS THEMSELVES. AN
AMERICAN RIVIERA BANK WE SEE IT
LET ME STE ONE CASE OF SUSPECTED
ELDER ABUSE A PER WEEK RIGHT
NOW. MOST OF THESE INSTANCES ARE
ROMANCE SCAMS. IN ONE CASE JUST
LAST MONTH WE HAD A SENIOR
REPORTING AN UNAUTHORIZED
TRANSACTION AFTER SHE FELL PREY
TO A SCAM- SHE'D ALREADY BEEN
FORCED OUT OF ANOTHER
INSTITUTION. AND HAND OVER JOB
LOSS OF TWENTY FOUR THOUSAND
DOLLARS AND WAS ULTIMATELY WERE
REPORTED TO CHECK SYSTEMS. NOW
FOR COUNTIES. CLOSE LIKE THAT
DUE TO REPEATED FRIDAY IF SHE'S
REPORTED TEXAS. SHE LIKELY WON'T
BE ABLE TO- OPEN ANOTHER. OF A-
LIABILITY FOR LOSSES THAT BANKS
WILL HURT CONSUMERS MORE SINCE
THEY WILL BE LESS LIKELY TO
MAINTAIN THE BANKING
RELATIONSHIP. SENATE BILL TWO
SEVENTY EIGHT WILL HAVE
SIGNIFICANT NEGATIVE IMPACT ON
ACCESS TO BANKING SERVICES FOR
OLDER ADULTS. BY SENSUALLY
REQUIRING BANKS TO DENY SENIORS
ACCESS TO THEIR ACCOUNTS WHEN
THEY SUSPECT SUSPICIOUS
ACTIVITY. PLACING BANKS AND A
CONSERVATIVE ROLE AND FORCING
THEM TO MAKE VERY CONSERVATIVE
DECISIONS REGARDING
TRANSACTIONS. THIS WILL LEAD TO
DELAYS AND POTENTIALLY LESS
WILLINGNESS BY BANKS TO MAINTAIN
ACCOUNTS WITH CUSTOMERS AFTER
THE FIRST SUSPICION OF FRAUD.
BECAUSE THE BILL WILL HINDER
ACCESS TO FINANCIAL SERVICES FOR
OLDER CUSTOMERS WE MUST
REGRETFULLY OPPOSE SENATE BILL
TWO SEVENTY. THANK YOU. ANY
ADDITIONAL WITNESSES IN
OPPOSITION. GOOD AFTERNOON.
CHAIRMAN MEMBERS MICHAEL LEVY
SENIOR VICE PRESIDENT GENERAL
COUNSEL FOR TRAVIS CREDIT UNION.
ON BEHALF OF THE CALIFORNIA
CREDIT UNION LEAGUE. TRAVIS IS A
MEMBER OWNED NOT FOR PROFIT
SERVING A QUARTER MILLION
CALIFORNIA CONSUMERS INCLUDING
FORTY FIVE THOUSAND SENIORS. WE
THANK SENATOR DODD FOR MEETING
WITH US AND APPLY HIS GOAL TO
PROTECT OUR ELDERLY. WE OPPOSE
THIS BILL BECAUSE WE DO NOT HAVE
THE LEGAL AUTHORITY IT ASSUMES
WE HAVE TO PREVENT FINANCIAL
ABUSE. THE BILL CREATE STRICT
LIABILITY FOR NEGLIGENT FAILURE
TO PREVENT FRAUD BY ANOTHER.
AGAINST FINANCIAL INSTITUTIONS
AND INDIVIDUAL BRANCH TELLERS
FOR SUPPOSEDLY NOT ACTING LIKE
REASONABLE PERSON TO PREVENT IT.
THE BILL SIX PREVENTION BUT IT
DOES NOT SAY WHAT A REASONABLE
MANDATED REPORTER SHOULD DO
BESIDES. THEIR EXISTING DUTY TO
REPORT SUSPECTED EXPLOITATION TO
APS OR ANOTHER RESPONSIBLE
AGENCY. IS THE SPONSORS LOOSELY
DESCRIBE FINANCIAL ABUSE WITH
THE WORD FRAUD TO ARGUE THAT WE
HAVE DETECTION SYSTEMS AND
ALGORITHMS NONE OF WHICH EXPOSE
ROMANCE AND CONFIDENCE SCHEMES
UNDUE INFLUENCE AND ARRESTS
WHETHER BY FAMILY MEMBERS
HOUSEKEEPERS ARE OTHERS. WELL
THE SPONSORS ARE CORRECT THAT WE
DO TRY TO STEER MEMBERS AWAY
FROM QUESTIONABLE ACTIVITY AND
OCCASIONALLY MAY TAKE IT UPON
OURSELVES TO REFUSE A
TRANSACTION IN FACT CREDIT
UNIONS HAVE NO INHERENT
AUTHORITY. TO REFUSE A MEMBERS
DIRECTIONS CREDIT UNIONS HAVE NO
FIFTY ONE FIFTY POWER TO ORDER
COMPULSORY PSYCH EVALUATION WE
CANNOT INITIATE CONSERVATORSHIP
PROCEEDINGS. AND NO LAWS GIVE US
POWER TO PREVENT MEMBERS WHO
HAVE NOT BEEN A JUDGED
INCOMPETENT FROM DOING WHAT THEY
WANT WITH THEIR OWN MONEY. EVEN
WHEN THEIR BEHAVIOR IS
OBJECTIVELY UNREASONABLE AND
UNWISE. THE BILL RELIES UPON THE
FENCE AND ADVISORY WHICH ABOUT
TO IDENTIFIES RED FLAGS WE
ROUTINELY USE TO DETECT
SUSPICIOUS TRANSACTIONS. BUT NOT
ONE SENTENCE IN A FIFTEEN PAGE
ADVISORY INDICATES HOW WE SHOULD
ACTUALLY PREVENT EXPLOITATION.
NEITHER DO THE SPONSORS THAT'S
BECAUSE WE CAN'T ACTUALLY
PREVENTED IF WE DECLINE THE
TRANSACTION THE MEMBER CAN
INITIATE A LONG MINOR FROM
ANOTHER INSTITUTION. THE SPONSOR
SUGGEST WE SHOULD JUST FREEZE
MEMBERS ACCOUNTS BUT NO COURT
PROCEEDINGS EXIST TO TRIGGER THE
RELEASE. AND WE EXPOSE OURSELVES
TO LIABILITY FOR CONVERSION OF
THE MEMBERS PROPERTY. IF ENACTED
WE WILL BE FORCED INTERROGATE
EVERY SENIOR AND PRESERVE
EVIDENCE OF THE DETAILS OF EVERY
TRANSACTION BECAUSE YEARS AFTER
THE FACT OFTEN IN A PROBATE
PROCEEDING BETWEEN SIBLINGS. WE
MAY BE FORCED TO JUSTIFY THE
REASONABLENESS OF CHOOSING TO
ALLOW ANY TRANSACTION. EVEN
HONEST MISCALCULATIONS IN THE
EYES OF A FUTURE JURY WILL BE
BORNE BY THE OTHER CREDIT UNION
MEMBERS WITHOUT PROOF OF
CAUSATION AND THE JUDGMENT WILL
CONCEIVABLY FOLLOW THE BRANCH
TELLER. FOR LIFE NOT SUBJECT TO
BANKRUPTCY AND MAKE THE TELLER
ON BOND DOUBLE FOR FUTURE
FIDUCIARY POSITIONS. ULTIMATELY
THAT WILL DECREASE ACCESSIBILITY
OF FINANCIAL SERVICES TO OUR
ELDERLY MEMBERS AND ONE CENT
FINANCIAL INSTITUTIONS TO AVOID
THE RISK BY CHOOSING NOT TO
SERVICE THEM WE URGE YOUR NO
VOTE THANK YOU. THANK YOU ANY
OTHER WITNESSES IN THE ROOM IN
OPPOSITION PLEASE COME FORWARD
STATE YOU JUST YOUR NAME.
AFFILIATION AND POSITION. J.
SELING. BANKERS LOOK FOR WORKING
WITH SENATORS ONLY. THANK YOU
OKAY. INDIA MIKE TO ON BEHALF OF
THE CALIFORNIA MORTGAGE BANKERS
ASSOCIATION RESPECTFULLY
APPROACHED. RENDON PASSED THE
CALIFORNIA CHAMBER OF COMMERCE
RESPECTFULLY OPPOSED. TO WIN BUT
IN COURT ON BEHALF OF SIFMA THE
SECURITIES INDUSTRY AND
FINANCIAL MARKETS ASSOCIATION IN
OPPOSITION. THANK YOU SEE NO
OTHER WITNESSES IN THE ROOM IN
OPPOSITION A MODERATOR CAN YOU
PLEASE QUEUE UP- ANY CALLERS FOR
SB TWO SEVEN EIGHT EITHER
OPPOSITION OR SUPPORT. THANK
YOU- IF YOU'RE IN OPPOSITION OR
SUPPORT AND AN SP TWO SEVEN
EIGHT. CORRECT THAT IS CORRECT
SB TWO SEVEN FOUR EIGHT. THANK
YOU AND PLEASE PRESS ONE
FOLLOWED BY ZERO AT THIS TIME
ONE FILED BY. ZERO THE LINE
FORTY YOU ARE A. AFTER OUR THE
FIRST A WHITE YOUR MONTHLY
HAPPENED OR HELLO. AND ARE IN.
AND WE WILL GO ON. FORTY THREE
YOU ARE OPEN. COULD HAVE NATALIE
BELL WE HAVE BE HELD BUSINESS.
RESPECT OF. FINE THIRTY SIXTY GO
AHEAD. CHECK THE WITH THE LEGAL
IT IS VISION OF CALIFORNIA IN
PART. AND ONE MOMENT SURE WE
HAVE A FEW MORE QUEUING UP. ONE
THIRTY EIGHT YOU ARE OPEN. HI
HOLDEN HELPING WITH THE LONG
TERM CARE OMBUDSMAN ASSOCIATION
AND SUPPORT. FOR ANYBODY ELSE
PLEASE PRESS ONE FOLLOWED BY
ZERO YOUR SUPPORT OR OPPOSITION
TO SB TWO SEVENTY EIGHT ADELINE
TWENTY SEVEN PLEASE GO AHEAD.
THIS IS BAKILI JUSTICE IN AGING
IN SUPPORT. WE DO HAVE A COUPLE
MORE WITH OPERATORS ONE MOMENT.
ONE TWENTY PLEASE GO AHEAD.
MADAM CHAIR UNTIL MEMBERS OF THE
COMMITTEE IN OVER DEANDRE
CALLING ON BEHALF OF THE OFFICE
OF THE STATE LONG TERM CARE
OMBUDSMAN EXPRESSING SUPPORT FOR
SENATE BILL TWO SEVEN EIGHT. ONE
FORTY ONE YOU ARE OPEN. CARROLL
WHO CALIFORNIA- DIGESTIVE IN
SUPPORT THANK YOU. MY TWENTY TO
PLEASE GO AHEAD. MY NAME IS AVE
WILLIAMS I LIVE IN SAN DIEGO
CALIFORNIA I AM CALLING TO URGE
SUPPORT FOR SB TWO SEVENTY EIGHT
AT THE DAUGHTER OF THE VICTIM OF
ELDER FINANCIAL FRAUD. THANK YOU
THANK YOU. LINE THIRTY TO YOUR
OPEN. MCGINNIS CALIFORNIA
ADVOCATES FOR NURSING HOME
REFORM IN STRONG SUPPORT OF SB.
TWO SEVENTY EIGHT. MADAM CHAIR
WE HAVE GONE THROUGH THE QUEUE
THERE ARE NO MORE PARTICIPANTS
GREAT THANK YOU VERY MUCH
MEMBERS WILL BRING IT BACK- TO
ANY QUESTIONS OR COMMENTS.
CENTERMAN. I HAD A QUESTION FOR
THE- SUPPORT WITNESS- WHICH IS I
WAS JUST WONDERING BASICALLY IF
YOU MIGHT RESPOND TO THE SECOND
WITNESS FROM OPPOSITION AND IN
PARTICULAR I'M I'M DESTROYED YOU
KNOW WONDERING BUT THE QUESTION
YOU YEAH I HAD A CHANCE TO CHAT
WITH YOU BEFORE THIS HEARING.
AND YOU- TALK ABOUT A REASONABLE
PERSON STANDARD IS BEING A
SAFEGUARD AGAINST- THE TYPES OF
PROBLEMS THAT THE OPPOSITION
WITNESS MENTIONED AND I GUESS
I'M I'M I'M GRAPPLING WITH THAT
THE SPECIFIC QUESTION I AM I'M
VERY SYMPATHETIC TO THE A AND I
AM A CO AUTHOR THIS BILL BUT I'M
VERY SYMPATHETIC TO THE IDEA
LIKE. IF SOMEBODY WITHDRAWS AN
ELDERLY PERSON WITH DRUGS TWENTY
ONE TIMES OVER SEVEN MONTHS LIKE
THEIR ENTIRE LIFE SAVINGS THAT
THAT OUGHT TO BE A RED FLAG- BUT
WHAT SHOULD A REASONABLE TELLER
REGIONAL BANK PERSON MANAGER DO
IN THAT SITUATION I'M JUST
CURIOUS WHAT YOU SEE IS AS THEIR
RESPONSIBILITIES. RIGHT SO RIGHT
NOW WE DO SEE BANKS- REFUSING
TRANSACTIONS FREEZING ACCOUNTS
AND CLOSING ACCOUNTS WHEN THEY
HAVE ACTUAL OR CONSTRUCTIVE
KNOWLEDGE OF FRAUD- BECAUSE AS
THE OPPOSITION BUT POINTED OUT
IN THEIR LETTERS THEY TO LOSE
MONEY WHEN THE- WHEN THIS FRAUD
OCCURS IN THE MONEY GETS
TRANSFERRED OUT OF THE- ELDERLY
PERSON'S ACCOUNT. SO WHAT THE
THEY'RE ALSO MANDATED REPORTERS
WHERE THEY'RE SUPPOSED TO REPORT
ANY SUSPECTED INCIDENTS OF ELDER
ABUSE. AND WHILE SB TWO SEVEN
EIGHT DOES NOT TELL ANY SPECIFIC
FINANCIAL INSTITUTION WITH A THE
SPECIFIC THINGS THEY HAVE TO DO
WITH RESPECT TO EACH
TRANSACTION. IT USES A
REASONABLE PERSON STANDARD WHICH
IS AN OBJECTIVE STANDARD THAT
SAYS BASED ON ALL THE
SURROUNDING FACTS AND
CIRCUMSTANCES INCLUDING MULTIPLE
RED FLAGS SUCH AS- TWENTY NINE
TRANSACTIONS IN A TWO MONTH
PERIOD ALL WIRED TO A FOREIGN
COUNTRY. UNCHARACTERISTICALLY
AND SUDDEN- IF UNDER ALL THOSE
FACTS AND CIRCUMSTANCES. ALL
THEY HAVE TO DO TO AVOID
LIABILITY UNDER THE STATUTE
WOULD BE TO ACT AS A REASONABLE
PERSON OR ENTITY IN A LIKE
POSITION WOULD. THAT MAYBE
FREEZING THE ACCOUNT. REFUSING A
TRANSACTION WHICH BANKS AGAIN.
CAN AND DO DO NOW- OR IF WHAT IF
A WITH TRANSACTION. THAT MIGHT
BE REASONABLE TO ALLOW THE
TRANSACTION TO PROCEED. SO THE
REASONABLE PERSON STANDARD
BECAUSE EVERYTHING IS FACT
SPECIFIC AND DEPENDING ON THE
CIRCUMSTANCES. THE OBJECTIVE
REASONABLE PERSON STANDARD-
GIVES THE BANKS THE OPPORTUNITY
TO DO WHAT THEY SHOULD ALREADY
BE DOING. WHICH IS ACT
REASONABLY- AS A- A SIMILAR
PERSON OR ENTITY IN THE SAME
SITUATION WOULD. SO MAYBE LIKE A
TEMPORARY FREEZE ARE YOU
THINKING AND HIS FAMILY UP A LOT
LIKE WHAT WHAT IF. I MEAN I'M
I'M CONCERNED THAT SOME OF THE
THINGS RAISED BY THE OPPOSITION
THAT THEY THEY FEEL LIKE THEY
MIGHT BE LIABILITY HOW WOULD YOU
RESPOND TO THEIR CLAIMS THAT.
UNDER THAT CIRCUMSTANCE A FREEZE
MIGHT LEAVE A TELLER OR MANAGER
OPEN THE LIABILITY. BUT WELL AS
FAR AS- YOU KNOW LEAVING A
TELLER OR MANAGER OPEN FOR
LIABILITY I MEAN IN CALIFORNIA
THERE'S BY KARIUS LIABILITIES SO
THE BANK. WHO IF AN EMPLOYEE
ACTS AS A WRONGFUL ACT IN THE
COURSE AND SCOPE OF THEIR
EMPLOYMENT FOR EXAMPLE ASSISTING
IN FINANCIAL ELDER ABUSE THE
LIABILITY WOULD BE ON THE
EMPLOYER. AND EMPLOYEE- SO THEN
WHAT ABOUT LIABILITY THE BANK
WILL. RIGHT SO I MEAN THAT THAT
THEY ARE ABLE TO FREEZE. AN
ACCOUNT TEMPORARILY IT CAN BE A
THREE DAY HOLD UNTIL THEY OPEN
IT THEY CAN WARN THE ELDER LIKE
WE'VE HEARD FROM THE OPPOSITION
AND WHAT THEY SAID. IN THEIR
LETTERS THAT THEY'RE TRAINED TO
IDENTIFY THIS THERE THEY TAKES
STEPS TO ENSURE THAT THIS
DOESN'T HAPPEN. SO IF THEY DO
THOSE THINGS. THEN THAT WOULD BE
POTENTIALLY ACTING REASONABLY AS
A REASONABLE LIKE YOU KNOW BANK
OR PERSON OR ENTITY IN A SIMILAR
SITUATION WOULD. SO IT'S VERY
FACT SPECIFIC AND IT DEPENDS ON
EACH CASE. BUT THERE ARE WAYS TO
PREVENT IT AND MANY BANKS DO DO
A GREAT JOB SOME CREDIT UNIONS
SMALLER BANKS DO A GREAT JOB OF.
MAKING SURE THAT WHEN IT IS
OBVIOUS THAT THERE ARE MULTIPLE
RED FLAGS A FINANCIAL OTHER
ABUSE THAT THEY DO NOT ALLOW THE
TRANSACTION TO OCCUR BECAUSE-
ONCE IT'S DONE IT CANNOT BE
UNDONE. THANK YOU AND THEN I HAD
A QUESTION FOR THE AUTHOR- NOW I
HAD A CHANCE TO SPEAK WITH
OPPOSITION- YESTERDAY- AND THEY
TOLD ME THAT. THEY WERE SEEKING
A SAFE HARBOR ON THIS BILL WHERE
THEY WOULD BE. EXEMPT FROM
LIABILITY IF THEY FOLLOW CERTAIN
PROCEDURES AND- YOU KNOW GET
GIVEN SOME OF THE CONCERNS REYES
AYE I EXPRESS THAT I WAS
SYMPATHETIC TO THAT AND THEY
SAID THAT- YOU HADN'T NOT.
NEGOTIATE WITH THEM ON A ON A
SAFE HARBOR SO I MEAN I GUESS I
GUESS BUT I WANTED TO HEAR YOUR
RESPONSE YEAH THAT FIRST OF ALL
THAT'S WHAT I SAID IN MY
OPENING. COMMENTS WERE SOMEHOW
WE WENT HAYWIRE THERE WAS A
MISUNDERSTANDING. BUT I WAS
EXPECTING DURING THIS TIME
PERIOD WE'RE CERTAINLY NOT GOING
TO. NEGOTIATED YET I'M NOT GOING
TO NEGOTIATE. AGAINST MYSELF IF
THEY WANNA. BRING ME SOMETHING
THAT MAKES SENSE THAT'S GOING.
TO PROTECT THE CONSUMER IS AT
THE END OF THE DAY. THAT'S WHAT
WE'RE TRYING TO DO HERE IS
PROTECT. THE SENIOR CITIZENS.
THAT ARE GETTING GET THE OTHER
EIGHT DINNER GETTING RIPPED OFF.
IF IN THE IF IT SHOWING THAT. WE
CAN ALSO THAT ALSO PROTECTS. THE
BANKS FROM ALSO. HAVING TO PAY
OUT WERE. THE YOU KNOW THEY
DON'T WANT TO SAY YES. IT'S NOT
MY- HAVE A CONVERSATION- I SO
SORRY. YEAH JASON RIGHT YET-
CALIFORNIA BAKES SOCIAIS ASIAN
THAT- YOU'RE- HAPPY TO HAVE
THOSE DISCUSSIONS AND- FIND SOME
FRUIT THERE THAT PERHAPS. SOME
MIDDLE GROUND AS WE MOVE THIS.
THE- THIS BILL FORWARD TO TRY
TO. YOU KNOW GET THAT SWEET SPOT
OKAY THANK YOU CENTER FOR
BRINGING THIS BILL FORWARD AT
YOU THIS IS OBVIOUSLY A
PERNICIOUS PROBLEM IN CALIFORNIA
ACROSS THE COUNTRY AND- I DO
THINK. POTENTIALLY SAFE HARBOR
IF IT IS IN THE INTERESTS OF
THIS BILL MIGHT MIGHT BE
APPROPRIATE BUT- I TRUST YOUR
JUDGMENT IN IN MOVING THIS
BEFORE BUT I WILL BE SUPPORTING
THE BILL TODAY AND- WILL MOVE
THE BILL. THANK YOU VERY MUCH WE
HAVE A MOTION- AND NEXT WE HAVE
VICE TOURNEY LOW. THANK YOU
MADAM CHAIR SENATOR DODD. YOU
AND I ARE CLOSE PERSONAL FRIENDS
FOR MANY YEARS BEFORE POLITICS
AND NOT EVERYBODY HERE. KNOWS
THIS AND- I WOULD LIKE VERY MUCH
TO SUPPORT EVERY BILL THAT YOU
INTRODUCED BECAUSE OF THAT AND-
PERHAPS IN ANOTHER ENVIRONMENT
OVER. WHINER BEER WE CAN NOW
TALK ABOUT THE AS AND DAYS BUT-
I SUPPORT WHAT YOU'RE TRYING TO
DO- ELDER ABUSE OF ANY SORT.
FINANCIAL OR OTHERWISE- A IS A
HORRIBLE THING THERE'S NO DOUBT
ABOUT IT I DON'T KNOW THAT WE
CAN NEVER COMPLETELY. PREVENT IT
BUT WE NEED TO DO ALL WE CAN. I
DO THINK THOUGH THAT THE
TESTIMONY OF THE OPPONENTS-
PRESENTED GOOD REASON THAT THERE
IS A HIGH PROBABILITY OF
UNINTENDED CONSEQUENCES IN THIS
LEGISLATION. AND THE DISCUSSION
NOTWITHSTANDING ABOUT THE
REASONABLE PERSON. IN THIS
CONTEXT. I THINK IT MAY BE JUST
AN INVITATION TO LITIGATION- BUT
AS I SAID MORE IMPORTANTLY
UNINTENDED CONSEQUENCES WE DO A
LOT AROUND HERE WE REALLY NEED
TO WORK TO NOT DO IT. AND I
THINK THIS BILL. NEEDS WORK
BECAUSE OF THAT AND I WOULD URGE
THAT BUT I CAN'T SUPPORT IT
TODAY SPOT. IT'S OKAY ROGER.
SENATOR SENATOR ROGER THANK
THANK YOU BILL. THANK YOU AND
SENATOR CAMBIADO. THE LITTLE BRO
MOMENT HERE'S- A- SO. SO SENATOR
AYE AYE I UNDERSTAND WHAT YOU'RE
WHAT YOU'RE TRYING TO DO HERE IN
AND I REALLY- I APPRECIATE IT
BECAUSE WHAT YOU REALIZE IS THAT
AS- WE MATURE AND WE H. ALL OF A
SUDDEN ALL OF THESE- PHONE
CALLS. AND EMAILS AND- JUST FOR
SOME REALLY PREDATORY STUFF-
POPS UP ON YOUR EITHER ON YOUR
NEWS FEEDS- YOU KNOW COMING
THROUGH- I MESSED UP UP UNTIL
LAST WEEK I STILL HAD A LAND
LINE IN MY LAND LINE IS FULL. OF
SCAMS YOU KNOW THIS IS THIS IS
THIS IS THE IRS CALLING YOUR O.
O. S. MONEY AND WE'RE GONNA COME
OUT WE'VE ISSUED A WARRANT WE'RE
GOING TO GIVE YOU A MINUTE TO.
TO FIGURE THIS OUT AND THEN
WE'RE COMING FOR YOU AN ANSWER
ANYWAY IT'S JUST DUMB. IT IS IT
IS PERNICIOUS AND IT'S- IT IT
PREYS ON PEOPLE'S- INABILITY
DOES KIND OF THINK THROUGH
THINGS AND DAVE AND MAKES PEOPLE
JUMP AND DO THINGS SO I AM I
APPRECIATE WHAT YOU'RE TRYING TO
DO I DO THINK THAT THERE'S SOME.
UP SOME WORK THAT'S NEEDED- I
AGREE WITH MY GOOD FRIEND FORMER
IRVINE THAT- THERE'S A NEED FOR
A SAFE HARBOR- IN OTHER WORDS.
IF THE BANK DOES X. Y. NZ THAT
THEN. WHATEVER COMES NEXT- IN
THEIR PROTECTED IN AND I SAY
THAT TOO BECAUSE- MY MOTHER
PASSED AWAY A YEAR AGO AND- I
WAS HER I'D- I HAD- POWER OF
ATTORNEY FOR A NUMBER. OF YEARS
BECAUSE SHE WAS SUFFERING FROM
ALZHEIMER'S AND TRYING TO GET
THINGS TAKEN CARE OF AT THE BANK
EVEN THOUGH I WAS THE ATTORNEY
OF RECORD AND I HAD ALL THAT I
MEAN THAT TOURNEY I HAD A POWER
OF ATTORNEY. AND I HAD ALL THE
PAPERWORK IS REALLY HARD BECAUSE
THEY WERE TRYING TO MAKE SURE
THAT IT WAS THE JET AND THAT IT
WAS- ON THE UP AND UP AND I GET
IT SO YOU WANT TO MAKE SURE
THAT. YOU'RE PROTECTING THE- THE
CONSUMER BUT ALSO NOT MAKING IT
SO DIFFICULT THAT PEOPLE CAN'T
TAKE CARE OF THE BASIC NEEDS OF
SENIORS THAT- BETTER BETTER
THERE AND I CAN SEE MY FATHER
GOING DOWN TO A BACON JUST
SAYING. I'M ELDERLY BUT I HAVE
THE RIGHT TO DO WHAT I WANT WITH
MY MONEY AS WELL AND SO- THERE
THERE THERE HAS TO BE A WAY FOR
THE BANK TO BE ABLE TO SAY YES.
I AGREE AND- HERE'S A PROCESS
YOU HAVE TO GO THROUGH IN ORDER
TO. TO MAKE SURE THIS IS- THIS
IS A GOOD THING WHAT WOULD BE
REALLY HELPFUL IS TO KNOW WHAT
THE BIG WHAT THE MOST.
FRAUDULENT WHAT IS THE WAY THAT
MOST FRAUD HAPPENS SO THAT WE
CAN WE CAN THEN CRAFT FOR IT MY
GUESS IS IT'S AROUND WIRE
TRANSFERS- BUT- BUT I DON'T KNOW
AND I DON'T KNOW BANKS CAN
TRANSFER- ELECTRIC.
ELECTRONICALLY IT WILL OR
WHETHER YOU HAVE TO GO DOWN
WESTERN UNION SO. THERE'S SOME
MORE WORK THAT SHOULD BE DONE-
I'M GONNA SUPPORTED TODAY BUT
WHAT YOUR COMMITMENT THAT YOU'LL
CONTINUE TO MEET WITH THAT
PARTIES THAT ARE AFFECTED BY IT.
AND AND DO YOUR BEST I KNOW YOU
WILL BECAUSE YOU YOU WORK ON
VERY DIFFICULT BILLS AND I
USUALLY COME TO A RESOLUTION
WHERE YOU GET PEOPLE. OFF OFF
OFF OF OPPOSITION SO. THANK RELY
ON YOU ON THAT. THANK YOU US
SENATOR PORTANTINO. THANK YOU-
MADAM CHAIR- I'M SURE I MISSED
EARLIER DISCUSSION BUT WAS
PRESENTING ANOTHER COMMITTEE
BUT- I SHARE THE- COMMENTS OF MY
COLLEAGUE- MISCAVIGE AERO- THIS
IS AN IMPORTANT ISSUE- AND I
KNOW- THE AUTHOR DEEPLY CARES
ABOUT. THE ISSUE AND WE ALL HAVE
HAD CONSTITUENTS MAYBE EVEN
FAMILY MEMBERS WHO HAVE BEEN
VICTIMS. OF ELDER ABUSE AND
SCAMS IN AND- IT'S NOT SOMETHING
WE DON'T HEAR IN OUR DISTRICTS-
THAT BEING SAID I'M GOING TO
SUPPORT THE BILL TODAY- THAT
BEING SAID I DO THINK THERE'S
ROOM FOR. FOR THE CONVERSATION
AND- JUST IN THE ONE POINT THAT
THE AUTHOR MADE ABOUT WHO MIGHT
BE. GENERATING POTENTIAL
AMENDMENTS YOU KNOW WHETHER IT
WAS THE AUTHORS OFFICER THE- BY
THE OPPOSITION- I THINK THAT
JUST SORT OF CRIES OUT FOR THE
NEED TO HAVE THAT FACE TO FACE
CONVERSATION I KNOW THIS BILL IS
GOING TO JUTISH NEXT. AND SO
THERE'S OPPORTUNITY AND TIME TO
HAVE THAT CONVERSATION SO I
THINK GETTING THE PARTIES IN A
ROOM AND HAVING A FACE TO FACE
CONVERSATION WITH THE AMENDED
BILL I KNOW THERE WERE EARLIER
CONVERSATIONS- I THINK CAN ONLY
LEAD TO A BETTER. MORE
IMPLEMENTABLE PRODUCT BECAUSE
WHAT WE WANT HERE IS SOMETHING
THAT'S GOING TO PROTECT. OUR
SENIORS- TO THE FULLEST EXTENT
POSSIBLE BUT NOT HAVE UNINTENDED
CONSEQUENCES SO I THINK THERE'S
THAT THERE'S A PATH TO GET
THERE. AND I ENCOURAGE- THE
PARTIES HAVE THAT CONVERSATION
BECAUSE I THINK IT'S IMPORTANT
AND OBVIOUSLY- THERE'S ANOTHER
OPPORTUNITY ANOTHER ANOTHER
POLICY COMMITTEE- AND THEN
DEPENDING ON HOW THE BILL COMES
OUT OF THAT COMMITTEE- WHETHER
THERE ARE COSTS ARE NOT SO- JUST
ENCOURAGE YOU TO HAVE THAT
CONVERSATION YOU AND I'VE TALKED
ABOUT THAT YES. THANK YOU. THANK
YOU AND I JUST I THINK THAT TO
ADD BILL PRESENTS AN IMPORTANT
OPPORTUNITY FOR US TO HAVE A
CONVERSATION- YOU KNOW SINCE
NINETEEN NINETY ONE- AND THE
ELDER ABUSE PREVENTION. ELDER
ABUSE INDEPENDENT ADULT CIVIL
PROTECTION ACT- A PASS THAT'S
OVER THREE DECADES AND IN THOSE
THREE DECADES DESPITE ALL THAT
WE HAVE DONE AS A STATE AND AS A
COUNTRY TO PUT LAW AND
REGULATIONS GUIDELINES- IN
PLACE. ELDER ABUSE HAS ONLY
INCREASED THE PROBLEM IS THREE
FOUR POINT FOUR. BILLION A YEAR
IN THIS COUNTRY THIS IS NOT
LITTLE AND AS FAR AS I KNOW AND
I CAN SEE AT THE MOMENT THIS IS
THE ONLY L. ELDER ABUSE BILL IN
THE LEGISLATURE IN THE BANKING
SPACE. THERE ARE OTHERS THAT ARE
GOING THROUGH THE PROCESS. AND
SO FOR ME I THINK YOUR BILL HAS
ALLOW FOR US TO HAVE A NEEDED
CONVERSATION- AS IT'S BEEN
STATED. ALL OF US FIFTY EIGHT
DIFFERENT COUNTIES HAVE
EXPERIENCED ELDER ABUSE. I AND
SO I THINK WHAT WE ARE LOOKING
FOR- E. IS CERTAINLY A WAY TO
HAVE A CONVERSATION ABOUT AN
IMPORTANT ISSUE THAT'S
IMPACTING. OUR CONSTITUENTS.
TODAY'S THE L. WE HEARD OF THAT
HORRIBLE EXAMPLE- AND MY HEART
GOES OUT TO YOU TO YOUR FAMILY
FOR EVERYTHING THAT YOU'VE BEEN
THROUGH- AND I ALSO KNOW THAT
IT'S NOT JUST US HERE WHO CARE.
I REALLY ALSO BELIEVE THAT WHEN
THE FINANCIAL INSTITUTIONS SAY
THEY DON'T WANT THIS TO HAPPEN.
THEY DON'T THEY DON'T AND SO I
THINK THAT THIS IS SOMETHING.
THAT WE ALL HAVE TO WORK ON. YOU
KNOW IN TERMS OF WHAT WE WORK ON
I REALLY AM HOPING THAT WE CAN
GET MORE SPECIFICITY FROM BOTH
SIDES- I THINK THAT MY CONCERN
IN LEAVING THIS TO BROUGHT IT.
IS THAT THE GUIDELINES TO
PROTECT OUR ELDERS AREN'T CLEAR.
ENOUGH AND THERE'S ALSO CONCERNS
IN MAKING IT TOO SPECIFIC- AND
MAKING IT TOO SPECIFIC AND
BELIEVING THAT OUR SPECIFICITY
WOULD ENCOMPASS EVERY SINGLE
SITUATION- THAT HAPPENS. I THINK
THAT- ADDITIONALLY IF THERE
ISN'T A- OF UNDERSTANDING ON HOW
WE CAN TAKE A POLICY AND AN
OUTCOME THAT WE'D LIKE. TO A
PLACE WHERE IT CAN BE IN
PRACTICE IMPLEMENTED IN A GREAT
WAY I WORRY THAT THE DEFAULT
WILL BE DENIAL AND THE SECOND
THAT WE ARE DENYING ELDERS- THE
OPPORTUNITY MAKE FINANCIAL
DECISIONS FOR THEMSELVES. IT FOR
BECOMES A FORM OF DISCRIMINATION
AND SO I AM WONDERING WHERE WE
LAND ON THIS- AND I THINK THAT
THAT'S AN IMPORTANT PIECE- I DO
FEEL THE ANALYSIS PROVIDES SOME
GUIDELINES AND ONE OF THE ONES
THAT I THINK FOR ME THAT I STILL
STRUGGLE WITH- IT HAS TO DO WITH
THE DEFINITION. OF THE CONCEPT
OF ASSISTING- AND I THINK THAT
THAT'S PROBABLY AN AREA WHERE WE
HAVE TO DEFINE MORE SPECIFICALLY
WHAT THAT LOOKS LIKE THERE IS
NOT A CONCEPT. OF ASSIST THAT'S
CLEARLY DEFINE IN LAW AT THE
MOMENT AND SO THAT IS IT ONE OF
THE PIECES THAT I HOPE- WE WILL
BE ABLE TO DISCUSS- I WILL BE
SUPPORTING THIS BILL I THINK
EVERYBODY WANTS TO FIND A PLACE
WHERE. THIS THIS IMPORTANT ISSUE
IS ADDRESSED AND THE OUTCOME
THAT WE ALL SHARE FINANCIAL
INSTITUTIONS EVERYONE HERE YOU
AS THE AUTHOR- IS REALLY
SOMETHING THAT. WILL ACHIEVE IT
YOU KNOW PROTECTING OUR ELDER
COMMUNITY- AND NOT. HAVING THE
SITUATIONS THAT HAVE BEEN PROP
FORWARD TO ALL OF US TODAY AND
IN OUR DISTRICT- CONTINUE TO
HAPPEN AT SUCH A RAPID. RAPID
PACE I ALSO WANT TO RECOGNIZE
THAT DESPITE ALL THE BEST
EFFORTS SOMETIMES THOSE THAT
FRAUD PEOPLE ARE ONE STEP AHEAD
WITH. A LOT OF TOOLS TECHNOLOGY
AND TO BE ABLE TO DO THIS- SO
WITH THAT- I WILL ALSO BE
SUPPORTING THIS BILL AND WILL
ALLOW YOU TO CLOSE BEFORE WE
TAKE A VOTE. THANK YOU VENTURE
THANK YOU FOR THOSE COMMENTS AND
THANKS TO YOU AND YOUR STAFF FOR
THE ASSISTANCE THAT WE HAD- WITH
WITH SOME YOU KNOW SOME OF THE
SOME OF THE AMENDMENTS. I TAKE
TO HEART WOULD MY COLLEAGUE SAY
HERE. I AT THE END OF THE DAY-
WHAT I'M GOING TO DO IS. MEET IN
PERSON BUT THERE ARE GOING TO
HAVE TO BE I JUST BE CLEAR HERE.
THAT MY KIDS OBVIOUS CONCERN IS
FOR THE SENIOR SO THERE'S GOING
TO HAVE TO BE. SOME POSITIVE
ACTION ON FINANCIAL INSTITUTIONS
PARTS NOT JUST. HERE'S OUR
TRAINING PROGRAM BECAUSE THAT
DOESN'T PROTECT SENIORS. I THINK
I GOT THE COMMITMENT THIS
MORNING- THAT WILL GO AHEAD WITH
THOSE CONVERSATIONS- I KNOW MOST
OF THE PEOPLE THAT ARE ON THE
OPPOSITION TO RESPECT THEM AND-
LOOK FOR THOSE CONVERSATIONS.
THANK YOU AND WITH THAT WE DO
HAVE A MOTION BY SENATOR MAN THE
MOTION IS DUE PASSED THE FIRST
RE REFER TO THE COMMITTEE ON
JUDICIARY. COMMITTEE PLEASE CALL
THE ROLL. SENATE BILL TWO SEVEN
EIGHT MOTION IS DUE PASSED THAT
FIRST BE REFERRED TO THE
COMMITTEE ON JUDICIARY. CENTER
LIMÓN I LIMON I KNEW LOW
RESPECTFULLY NO. THE LOAN NOW
BRADFORD. CABALLERO AYE MAN AYE
MIN AYE WHEN. PORTANTINO I.
THANK YOU MANAGER MEMBER THANK
YOU THAT BILL HAS FOUR VOTES AND
WE WILL LEAVE- THE ROLE OPEN FOR
PEOPLE TO ADD ON. A NEXT A SEE
THAT WE HAVE A SENATORS LAST SO
HERE- AND SENATOR DO DOCILE WILL
BE PRESENTING SENATE BILL.
SECOND. FIVE NINE FOUR.
THANK YOU THANK YOU THANK YOU
MADAM CHAIR AND MEMBERS ARE SB
FIVE NINE FOUR AIMS TO ESTABLISH
TRANSPARENCY IN THE OWNERSHIP OF
LIMITED LIABILITY COMPANIES AND
SIMILAR CORPORATE ENTITIES. THIS
BILL REQUIRES THAT LLCS
CORPORATIONS AND REAL ESTATE
INVESTMENT TRUST'S DISCLOSE THE
NAME OF OWNERS WITH SUBSTANTIAL
CONTROL OVER THE ENTITY. WHEN
THEY ARE CREATED AND WHEN THEY
SUBMIT THEIR BI ANNUAL FILINGS.
EXISTING LAW ALLOWS FOR THE
CREATION OF LLCS AND SIMILAR
ENTITIES IN ORDER TO PROVIDE
LEGAL PROTECTION FOR ASSETS NOT
OWNED BY THE L. L. C. OFTEN
HOWEVER OWNERS ABUSE L. TO
SHIELD NOT ONLY THEIR ASSETS BUT
ALSO THEIR IDENTITIES. RIGHT NOW
THERE IS NO REQUIRED PUBLIC
DISCLOSURE OF WHO THE REAL
OWNERS OF LLCS OR CORPORATIONS
ARE. MANY LLC'S ARE OWNED IN THE
NAME OF ANOTHER LLC WHICH
CREATES AN ADDITIONAL LAYER OF
ANONYMITY. NONE OF THIS IS
NECESSARY TO ACHIEVE THE LEGAL
AND THE FINANCIAL PROTECTION
THAT IS AFFORDED BY FORMING AN
LLC. THE ABILITY FOR LLCS TO
ABUSE THE STRUCTURE TO REMAIN
ANONYMOUS ENDS UP PRESENTING
NUMEROUS EACH ISSUES AND EVEN
ENABLES UNSCRUPULOUS AND ILLEGAL
PRACTICES FOR INSTANCE ANONYMOUS
LLCS ARE PERVASIVE AMONG
EMPLOYERS THAT'S GREAT LAWS
MEANT TO PROTECT WORKERS.
DECEITFUL EMPLOYERS CAN USE LLCS
TO AVOID RESPONSIBILITY FOR
UNDERPAYING WORKERS VIOLATING
MEAL AND REST BREAK PERIODS AND
IGNORING OCCUPATIONAL HEALTH AND
SAFETY REGULATIONS. BY THE TIME
THE BUSINESSES FOUND RESPONSIBLE
FOR VIOLATIONS THE OWNERS HAVE
DISSOLVE THE LLC AND CREATED A
NEW ONE LEAVING NOBODY TO PAY
BACK WAGES OR ADDRESS SAFETY
ISSUES IT CAN TAKE YEARS THE
JUSTICE DEPARTMENTS AND LABOR
AGENCIES TO CONNECT THE DOTS TO
SHOW. THAT A SINGLE PERSON IS
RESPONSIBLE FOR REPEATED
VIOLATIONS ALLOWING ABUSES TO
CONTINUE LARGELY ON IMPEDED.
CONTRACTORS CAN ALSO SPLIT
CONSTRUCTION PROJECTS ACROSS
LLC'S TO PRESENT THE APPEARANCE
OF THE CONTRACT IS UNDER THE
LOCAL COST THRESHOLD WHEN IN
FACT THE TOTAL COST CAN BE ABOVE
A PROJECT LABOR AGREEMENT
TRIGGER. THE LACK OF OWNER
TRANSPARENCY ALSO PROVIDES AN
AVENUE TO SKIRT RESPONSIBILITY
FOR SUB STANDARD HOUSING WHEN
PROPERTY OWNERS CAN HIDE BEHIND
A WEB OF LLCS TENANTS AND LOCAL
ENFORCEMENT. OFFICIALS OFTEN
FRUSTRATED IN THEIR ATTEMPTS TO
OBTAIN REPAIRS BECAUSE THEY
CAN'T FIND THE TRUE OWNER
RESPONSIBLE FOR THE PROPERTY. SB
NINE FIVE NINE FOUR IS A GOOD
GOVERNANCE BILL IT DOES NOT
CHANGE ANY OF THE LEGAL
PROTECTIONS AFFORDED TO THESE
ENTITIES IT SIMPLY REQUIRES THE
DISCLOSURE OF AN LLC OR SIMILAR
CORPORATE ENTITIES. BENEFICIAL
OWNER NAME AND ADDRESS THIS IS
THE SAME INFORMATION THAT WE ASK
FROM THE CEOS DIRECTORS MANAGERS
AND MEMBERS. WITHOUT OWNER
TRANSPARENCY POLICYMAKERS
ENFORCEMENT AGENCIES AND THE
PUBLIC LACK CRITICAL INFORMATION
TO IN MAKE INFORMED POLICY
DECISIONS. TODAY I HAVE WITH ME
TWO WITNESSES IN SUPPORT OF THIS
BILL YOU OUGHT TO ROOP BY ONE
FROM THE CALIFORNIA REINVESTMENT
COALITION. AND RUTH SILVER TAUBE
SUPERVISING ATTORNEY AT THE
SANTA CLARA UNIVERSITY SCHOOL OF
LAW BELIEVES MR COBB WILL GO
FIRST. GOOD AFTERNOON SENATORS
THE ABILITY TO USE AND ABUSE
LLCS TO CREATE AN OMNIMEDIA
ALLOWS DISHONEST EMPLOYERS TO
PLAY SHELL GAMES AND AVOID
COMPLYING WITH LAWS THAT PROTECT
WORKERS. THIS HAPPENS ACROSS A
VARIETY OF INDUSTRIES INCLUDING
HOSPITALITY CONSTRUCTION NURSING
HOMES THE PORTS AND OTHER LOW
WAGE INDUSTRIES IN MY WORK I SEE
THIS HAPPEN ALL THE TIME- I
SUPERVISE A WORKERS RIGHTS
CLINIC AT SANTA CLARA UNIVERSITY
LAW SCHOOL I RECENTLY WORKED
WITH THE LABOR COMMISSION
ATTORNEY ON A WAGE THEFT IN
RETALIATION CASE WHERE WE HAVE
TO NAME ELEVEN HOTEL. AND
RESTAURANT ENTITIES BECAUSE WE
DID NOT KNOW THE NAMES OF THE
OWNERS WE WOULD NOT HAVE TO NAME
BUT SO MANY ENTITIES OR
EXPERIENCE SUCH A LONG DELAY IF
WE KNEW WHO WAS ON THE HOOK IN
LOW WAGE INDUSTRIES LLC IS ARE
OFTEN USED TO HIDE ASSETS. AND
MAKE IT HARD FOR WORKERS TO EVER
RECOVER WAGES EVEN AFTER THERE
IS A JUDGMENT YEAH YEAH IN ONE
OF OUR RESTAURANT CASES THE
RESTAURANT CHAIN'S HANDS. TWENTY
ONE TIMES OR EVERY TIME THERE
WAS A JUDGMENT THOUGH THOSE
OWNERS CAN SIMPLY DISSOLVE THEIR
BUSINESS AND QUICKLY SET UP SHOP
UNDER A NEW NAME WHILE STILL
MAINTAINING OWNERSHIP AND
REGISTER WITH THE SECRETARY OF
STATE'S OFFICE. ALL WITHOUT
HAVING TO DISCLOSE WHO THE REAL
OWNER IS IF WORKERS DON'T KNOW
WHO THE OWNERS OF THE BUSINESS
ARE THEY WOULD BE UNABLE TO FILE
WAGE CLAIMS WITH THE LABOR
COMMISSION. BECAUSE THE OWNER
COULD NOT BE SERVED. WE'VE HEARD
THAT ONE OF THE MOST TIME
CONSUMING ACTIVITIES FOR THE
LABOR COMMISSIONER'S OFFICE IS
TRYING TO DETERMINE WHO THE
EMPLOYER IS. PROSECUTORS COULD
ALSO BETTER IDENTIFY LAWBREAKING
INDIVIDUALS IN A CRIMINAL CASE
AND SHOW A PATTERN OF THE- ABUSE
IF THEY COULD IDENTIFY A SINGLE
PERSON. OR ENTITY RESPONSIBLE
FOR THE REPEATED VIOLATIONS
REQUIRING LLCS. AND COMPANIES TO
INCLUDE THEIR BED OFFICIAL OWNER
IN THERE. FIVE WILL PROVIDE
ADDITION TRANSPARENCY AND
ACCOUNTABILITY THIS IS WHY WE
NEED SB FIVE NINE FOUR EIGHT
GOOD GOVERNANCE BILL. AND I
RESPECTFULLY ASK THAT YOU
SUPPORT THIS EFFORT AND VOTE HI
THANK YOU. THANK YOU. ADDITIONAL
WITNESSES IN SUPPORT. HI GOOD
AFTERNOON I'M JOE THROUGH FOLLOW
WITH THE CALIFORNIA REINVESTMENT
COALITION- AS STEWARDS OF
RESPONSIBLE USE OF TAXPAYER
DOLLARS AND GOVERNMENT
EFFICIENCY WE HOPE YOU WILL
SUPPORT BENEFICIAL OWNER
TRANSPARENCY. LAST YEAR AS PART
OF A BANK MERGER RELATED
INVESTIGATION WE FOUND A
CALIFORNIA BASED COMMUNITY
REINVESTMENT PROGRAM RELYING
HEAVILY ON IN HOLLAND LANDING
SPECIFICALLY TO LANDLORDS AND
WHAT ARE ESSENTIALLY PREVIOUSLY
REDLINED NEIGHBORHOODS- WE
DISCOVER DOZENS OF LOANS
CONNECTED TO INFAMOUS SLUMLORDS.
REINVESTMENT AS YOU KNOW IS
CAPITAL THAT IS SUPPOSED TO
SERVE COMMUNITY NEEDS AND
RECTIFY HARMS CAUSED BY RED
LIGHTING INSTEAD OF THIS CAPITAL
WAS HELPING BAD LANDLORDS WITH
UNLAWFUL BUSINESS PRACTICES GROW
THEIR OPERATION. AND THE
ANNOYING REGULATORS WERE GIVING
THIS BANKS CRA CREDIT FOR IT YOU
SEE THIS KIND OF INTEL IS NOT
ALWAYS AVAILABLE TO US STATEWIDE
BUT WITH SB FIVE NINE FOUR WE
COULD BUILD AN INFRASTRUCTURE TO
BETTER INFORM REGULATORS. AND
STATE AND LOCAL OFFICIALS ABOUT
THE IMPACT OF LENDING IN OUR
COMMUNITIES THUS INCREASING THE
EFFICIENCY AND IMPACT OF PRIVATE
CAPITAL INVESTMENT. SIMILARLY WE
COULD USE THIS INFORMATION TO
ALSO PROVIDE TAXPAYER DOLLAR
INVESTMENT THAT IS DEPLOYED
NECESSARY EMERGENCY RELIEF AID
LIKE THE PPP PROGRAM AND THE
EMERGENCY RENTAL- RELIEF
PROGRAM. BY ENSURING THAT LAW
ABIDING BUSINESSES PEOPLE
BUSINESS PEOPLE WHO FUEL OUR
ECONOMY HAVE ACCESS AND ARE NOT
CUT OUT OF LINE BY NEFARIOUS
ACTORS WHO BOGGED DOWN OUR
JUSTICE APPARATUS. LASTLY IN
DEFENSE OF FIRST TIME HOME
BUYERS I'D LIKE TO POINT OUT
THAT OUR RESEARCH SHOWS THAT IN
Q. FOUR OF TWENTY TWENTY ONE.
WHEN INTEREST RATES WERE A
HISTORIC LOW 75% OF ALL
PURCHASES MADE BY LLCS WERE IN
CASH THESE ARE NOT SMALL
INVESTORS THESE ARE LARGE
OPERATIONS GROWING AS
MONOPOLIES. A REPORT EARLIER IN
THE YEAR SHOW THAT JUST. TEN OF
THE LARGEST LANDLORDS HI I
AMASSED. NINE ONE BILLY DOLLAR
CASH ON HAND DURING THE PANDEMIC
AND WE'RE READYING FOR A BUYING
SPREE AND SEE IN A STATE THAT IS
ALREADY STRESSED BY HOUSING
UNAFFORDABILITY FURTHER
CONSOLIDATION UNDER LARGE
CORPORATE LANDLORDS. HAS
UNDOUBTEDLY MADE THINGS WORSE
FOR SMALL INVESTORS TENANTS AND
FIRST TIME HOME BUYERS IN
PARTICULAR. FAMILIES CANNOT
COMPETE WITH A HUNDRED AND
NINETY ONE BILLION DOLLARS IN
CASH. OWNER OF THE CITY AND THE
RESULTING LACK IN DATA FOR
CITIES COUNTIES AND ELECTORAL
DISTRICTS IS A BARRIER TO
DESIGNING AND MOVING POLICY THAT
ADDRESSES ALL THESE ISSUES
EFFECTIVELY. SO FOR THESE
REASONS WE HUMBLY THANK YOU FOR
YOUR THOUGHTFUL CONSIDERATION
AND SUPPORT OF SB FIVE NINE FOUR
. THANK YOU ANY OTHER WITNESSES
IN SUPPORT PLEASE JUST SAY YOUR
NAME AFFILIATION AND POSITION. A
GOOD AFTERNOON CHAIR MEMBERS
TRYING TO GUEST ON BEHALF OF THE
CALIFORNIA COALITION FOR RURAL
HOUSING THE CALIFORNIA RURAL
LEGAL ASSISTANCE FOUNDATION. THE
NATIONAL HOUSING LAW PROJECT AND
THE PUBLIC INTEREST LAW PROJECT
IN SUPPORT. GOOD AFTERNOON
HEARING MEMBERS AMY HINES LIKE
WITHOUT CONSULTING REPRESENTING
UNITE HERE LOCAL ELEVEN AND TO
THE CALIFORNIA COMMUNITY LAND
TRUST NETWORK THANK YOU. VERY
CLEAR SHE HARM BEHALF OF THE
CALIFORNIANS LIMIT LAWYERS
ASSOCIATION AND THE CALIFORNIA
COALITION FOR WORKER POWER AND
SUPPORT THANK YOU. LEARNING KI¾M
FOR THE LOS ANGELES LINES FOR
NEW ECONOMY AND THE SANTA CLARA
COUNTY WAGE THAT COALITION IN
STRONG SUPPORT THANK YOU. MITCH
SNIDER WITH THE CALIFORNIA LABOR
FEDERATION ALSO IN SUPPORT.
DARCHINYAN BIRD WITH THE
AMERICAN FEDERATION OF STATE
COUNTY MUNICIPAL EMPLOYEES- IN
SUPPORT. MARCH TIRES OF THE
CALIFORNIA HOUSING PARTNERSHIP
IN SUPPORT. PRINCE FROM
INCLUSIVE FASHION FOR THE CITY
IN SUPPORT. EIGHT THANK. THANK
YOU ANY WITNESSES IN OPPOSITION
. THE NO WITNESSES. IN
OPPOSITION- WE WILL MOVE TO THE
TELECONFERENCE LINE MODERATOR.
CAN WE PLEASE QUEUE UP ANY-
COMMENTS IN SUPPORT OR IN
OPPOSITION OF SB. FIVE NINE
FOUR. THANK YOU MEDICARE IF YOU
ARE IN SUPPORT OR OPPOSITION TO
SB FIVE NINE FOUR PLEASE PRESS
ONE ZERO THIS TIME ONE FILE BY
ZERO. AND ONE MOMENT. WE HAVE A
COUPLE QUEUEING FOR BUT ELSE
PLEASE PRESS ONE ZERO SUPPORT
APPS TO SB FIVE NINETY AND WE
WILL GO TO LINE FIFTY FOUR. YOUR
THANK YOU REALLY ROSENBERGER
WITH AT THE ARE YOU IN SUPPORT.
AND WE WILL GIVE A FINE REMINDER
WHY FOLLOWED BY. TO TEST IN
SUPPORT APPS TO. SENATE BILL
FIVE NINE FOUR HAMLINE FORTY
FOUR YOU ARE OPEN. GOOD
AFTERNOON MADAM CHAIR AND
MEMBERS CREAM GREASY ON THE
AFTER THE CALIFORNIA ASSOCIATION
OF REALTORS IN OPPOSITION- JEEZ
FOR THE LATENESS OF OUR
COALITION LETTER I RESPECTFULLY
REQUEST A NOTEBOOK THANK YOU SO
MUCH. I'M SURE THERE ARE NO
OTHER PARTICIPANTS QUEUED UP AT
THIS TIME. I SEE NO OTHER
WITNESS. WITNESSES OR TESTIMONY
OVER THE CALL A CONFERENCE LINE
IN SUPPORT OR OPPOSITION MEMBERS
ANY COMMENTS OR QUESTIONS. VICE
CHAIR LENA NIELLO VICE TOURNEY
LAW AND WE DO HAVE A MOTION FOR
MEN TO MOVE THE BILL. THANK YOU
AFTER- SENATOR ALSO THIS PAINTS
AN AWFULLY BROAD BRUSH. AND
IMPLICATES A LOT OF LIMITED
LIABILITY COMPANIES. THOUSANDS
OF WHICH- ARE. VERY INVOLVED IN
THEIR LOCAL COMMUNITY AND- MORE
THAN ADEQUATELY KNOWN I JUST
HAPPEN TO BE AN OWNER OF ONE
MYSELF. AND BUT BUT YOU. BRA YOU
YOU PAINT THE BRUSH. PRETTY
BROADLY. YESTERDAY YOU
SUPPORTED- SENATOR- MANAGER OF
OURS- SB THREE SEVEN ONE THAT
OFFERED. A PRETTY GENEROUS
ALLOWANCES TO- BUSINESSES IN THE
BREEZE SYSTEM TO- NOT DISCLOSE
THEIR HOME ADDRESS AND I
RECOGNIZE THE ISSUE YOU HAVE
WITH BAD ACTORS BUT AS I SAID.
THAT'S AS BAD AS THEY ARE
THEY'RE STILL A PRETTY SMALL
MINORITY OF THE LIMITED
LIABILITY COMPANIES OUT THERE
ARE SOME WONDERING WHAT'S
DIFFERENT BETWEEN THAT
POPULATION AND THIS POPULATION.
OTHER THAN THIS SMALL NUMBER OF
BAD ACTORS RELATIVELY SMALL-
WELL I'M- WHAT I AIM TO DO WITH
THIS IS GET SOME VERY SIMPLE
INFORMATION IF YOU LOOK AT THE
SECRETARY OF STATE'S FORM RIGHT.
OFF YOU KNOW THE INFORMATION
THAT WOULD BE ASKING FOR
ASSEMBLY YOU KNOW THE NAME- OF
THE BENEFICIAL OWNER. AND EITHER
THEIR PERSONAL YOU KNOW OUR
RESIDENTIAL- YOU KNOW ADDRESS
JUST TO KNOW WHO THEY ARE I MEAN
THAT'S WHETHER YOU'RE- YOU KNOW
OF YOU KNOW WHETHER THERE IS A
LOT OF BAD ACTORS ARE JUST A
HANDFUL I THINK IT'S IMPORTANT
TO HAVE THE ACCURATE
INFORMATION. OF THAT YOU KNOW
JUST SHOULD BE AVAILABLE TO
PUBLIC IT'S ALREADY- SOME OF A
LOT OF IT IS ALREADY REPORTED TO
THE SECRETARY OF STATE WE JUST
NEED TO GET THAT FINAL. FINAL
BIT OF INFORMATION. ALL RIGHT
THANK YOU MEMBERS ANY OTHER
QUESTIONS OR COMMENTS. CNN I
WILL JUST COME INTO THAT. I A.
B. YOU KNOW I THINK THAT THIS IS
IMPORTANT AND- THERE'S A LOT OF
REASONS AT TOUGH TO WANT MORE
INFORMATION- CERTAINLY I ALSO
HOPE- THAT SOME OF THE POLICY AT
QUESTIONS OUTLINED IN PAGES
EIGHT AND NINE OF THE ANALYSIS-
WILL BE CONSIDERED IN THE FUTURE
AS THIS BILL MOVES FORWARD.
REALLY TO STRENGTHEN A THING THE
BILL- I THINK THERE'S SOME- JUST
QUESTIONS THAT THAT ARE. IF TO
KNOW I WANT TO. THAT CENTER WITH
OTHER WHO IS HERE. HAS A BILL
HE'S A THINKING TO BE WORKING
WITH YOU- ON YOUR PARTICULAR
BILL- SO IT IS AN INTEREST OF
MULTIPLE. MEMBERS OF OUR OF THIS
AT AND THE SENATE TO REALLY
THINK ABOUT TRANSPARENCY- IN
THIS PARTICULAR SPACE THE WITH
THAT WOULD YOU LIKE TO CLOSE. AS
WE ARE ABLE THANK YOU THANK YOU
AND WE HAVE A MOTION BY US
SENATOR MEN AND THE MOTION IS DO
YOU PASS BUT FIRST REFERRED TO
THE COMMITTEE ON JUDICIARY CAN
WE PLEASE CALL THE ROLL. SENATE
BILL FIVE NINETY FOUR MOTION IS
DUE PASSED THAT FIRST BE
REFERRED TO THE COMMITTEE ON
JUDICIARY SENATOR LIMÓN I LIMON
I. HELLO NO ELEVEN NO BRADFORD.
BRADFORD AYE CABALLERO. AYE MAN
. MAN I WHEN. PORTANTINO
PORTANTINO I. FIVE ALL RIGHT.
THE BILL HAS A FIVE VOTES AND WE
WILL LEAVE- THE ROLE OPEN FOR AN
ADDITIONAL MEMBERS TO ADD ON
THANK YOU MEMBERS THANK YOU
MANAGER. OUR A AND NOW WE HAVE
OUR FINAL BILL WE HAVE A SENATOR
MCGUIRE. FOUR FIVE FIVE.
CHANGING IT UP I LIKE IT. AND
THERE IS THE. THE PODIUM IS SO
AWKWARD RIGHT BECAUSE IT'S NOT
HIGH ENOUGH AND SO. THERE YOU GO
EXACTLY. VENTURE FIRST AND
FOREMOST I JUST WANNA SAY THANK
YOU AFTER HEARING THE BILL TODAY
NUMBER ONE AND ALSO THANK YOU
FOR BEING COMMON EATEN AT THIS
AFTERNOON INTO A BUSY SCHEDULE
YOU HAVE. A MAN CHAIR- IT'S
BEFORE FIVE FIVE IS A COMMON
SENSE PIECE OF LEGISLATION THAT
WILL PROTECT FIRE IN OTHER
DISASTER SURVIVORS AND KEEP
THEIR HOME WE BUILT ON TRACK.
AND MANAGER I KNOW THAT WE HAVE
ASSIST SUPPORT SUPPORT
RECOMMENDATION SELL TRUNCATE THE
AT THE STATEMENT HERE AND
KNOWING THAT AFFECTS ABOUT THE
COMMITTEES. LONG STORY SHORT-
THERE HAVE BEEN LITERALLY
HUNDREDS OF CASES I SINCE TWO
THOUSAND FIFTEEN WHERE HOME
REBUILD IS UNDERWAY. AND A
MORTGAGE IS SOLD. IN THAT NEW
MORTGAGE COMPANY CHANGES THE
TERMS FOR THAT FIRE SURVIVOR.
SOME NEW MORTGAGE COMPANIES HAVE
ADDED ADDITIONAL TERMS TO
EXISTING REBUILD AGREEMENTS SUCH
AS REQUIRING MORE INFORMATION
INSPECTIONS WHICH THEN
SIGNIFICANTLY DELAYS THE PAY OUT
AND DOING THE REBUILD OF THE
HOME FOR MONTHS. IN OTHER CASES
WHERE THE HOMEOWNERS WERE UNDER
INSURED IN THE ORIGINAL MORTGAGE
COMPANY HAD SIGNED OFF ON A
REBUILD OF A SMALLER HOUSE. THE
NEW MORTGAGE COMPANY DIDN'T
HONOR THAT AGREEMENT. IN THAT
NEW COMPANY THEN REFUSED TO
RELEASE ALL THE REMAINING FUNDS
BECAUSE THE REBUILD WAS
DIFFERENT IN THE LOST HOME. SO
WHAT S. BEFORE FIVE FIVE WOULD
DO IS MAKE SURE ANY AGREEMENTS
MADE BETWEEN HOMEOWNERS IN THE
MORTGAGE COMPANY ON THE
REBUILDING THEIR HOME AFTER THIS
DISASTER ARE DISCLOSED. TO THE
NEW COMPANY IF THE MORTGAGE IS
SOLD AND IT ALSO REQUIRES THAT
THE NEW FINANCE FINANCIAL
INSTITUTION. HONORS THE ORIGINAL
AGREEMENT AGAIN COMMONSENSE AND
IT'S ONLY IN THOSE. SPACES WHERE
WE HAVE A DISASTER IN A REBUILD
IN INSURERS AT THE EXISTING
REBUILD AGREEMENTS ARE HONORED
WHEN MORTGAGES ARE SOLD. OUT I
WILL ALSO SEE IF YOU THANK YOU
SO MUCH A THANK YOU TO THE
CALIFORNIA BANKERS ASSOCIATION
CALIFORNIA MORTGAGE BANKERS
ASSOCIATION. IN THE CONFERENCE
COMMITTEE BANKING NETWORK. FOR
THEIR DIRECT ENGAGEMENT I WILL
TELL YOU MADAM CHAIR WE ARE
CONTINUING CONVERSATIONS AND I'M
COMMITTED TO BE ABLE TO MAKE
SOME FUTURE AMENDMENTS ON THIS
BILL BASED OFF OF SOME OF THAT.
THE HOUSEKEEPING AMENDMENTS TO
THEIR ADVANCING AND I'M GRATEFUL
FOR THAT- BUT BOTTOM LINE IS
DISASTER FIGHT SURVIVORS ALREADY
FACE TREMENDOUS CHALLENGES
RECOVER FROM IMPACTS. AND WE
NEED TO ENSURE THAT WE HELP THEM
REBUILD THEIR HOMES AND LIVES
PROPERLY. TODAY I'VE KINDLE
JARVIS SHE'S THE LEAD DISASTER
RELIEF ATTORNEY FOR LEGAL AID OF
SONOMA COUNTY AND WAS A THANK
YOU AND CHAIRED. LEGALLY FOR ALL
THE WORK THEY DO FOR FIRE
SURVIVORS AND. WOULD
RESPECTFULLY ASK FOR AN AYE
VOTE. THANK YOU CENTER REQUIRE
WILL GO A AND- HERE FROM LEAD
THEM. LEADS TO POOR. FAIR ENOUGH
THANK YOU WHO HAD OF CHAIR.
COMMITTEE MEMBERS THANK YOU. MY
NAME IS KENDALL JARVIS I BEEN
THE LEAD DISASTER RELIEF
ATTORNEY FOR LEGAL AID OF SONOMA
COUNTY FOR THE PAST FIVE AND A
HALF YEARS. I'M HERE TODAY TO
EXPRESS LEGALLY SUPPORT FOR
SENATE BILL FOUR FIVE FIVE. THE
INTENT OF AS BEFORE FIVE FIVE IS
TO ENSURE THAT SURVIVORS OF
DECLARE DISASTERS TO EXPERIENCE
A TOTAL LOSS OF THEIR HOME. ARE
ABLE TO REBUILD WITHOUT THE
TRANSFER OF THEIR MORTGAGE
CAUSING ADDITIONAL UNNECESSARY
DELAYS DURING THE REBUILD RE
PURCHASE PROCESS. I WANNA READ A
STATEMENT FROM A CLIENT
EXPRESSING HOW THIS ISSUE CAN
IMPACT FAMILIES. YOUR COMMITTEE
MEMBERS MY NAME IS NINA HUGO AND
I'M WRITING TODAY TO EXPRESS MY
SINCERE SUPPORT FOR SENATE BILL
FOUR FIVE FIVE. MY HUSBAND OUR
THREE SONS AND I LOST HER HOME
AS A RESULT OF CINEMA COMPLEX
FIRES. AFTER SUFFERING THAT LOSS
WE DISCOVER THAT WE WERE
SIGNIFICANTLY UNDER INSURED.
AFTER WORKING WITH NUMEROUS
CONTRACTORS WE WERE FINALLY ABLE
TO IDENTIFY A PLAN THAT WOULD
ALLOW US TO REBUILD.
SUBSEQUENTLY PRESENTED OUR PLAN
TO OUR MORTGAGE COMPANY AND THEY
AGREED TO RELEASE THE FUNDS
ACCORDINGLY. WHEN WE DECIDED TO
REBUILD WE KNEW THAT WE WOULD
HAVE TO USE ALL OF OUR INSURANCE
PROCEEDS AND COST. CUT COSTS TO
DO SO. FOR THIS REASON MY FAMILY
AND I MOVED INTO AN RV ARE
FRIENDS PERSONAL WE WERE
REBUILDING BECAUSE WE DID NOT
HAVE THE FINANCIAL RESOURCES TO
PAY FOR TEMPORARY HOUSING. THAT
WOULD ALLOW US TO KEEP OUR
CHILDREN IN THE SAME SCHOOLS. IT
IS IMPORTANT TO UNDERSTAND WE
SPENT SIGNIFICANT TIME EFFORT
AND ENERGY NEGOTIATING WITH OUR
INSURANCE COMPANY AND
IDENTIFYING THE WAY FORWARD.
THAT WOULD ALLOW US TO REBUILD
ONCE WE IDENTIFY THE WAY FORWARD
OUR INSURANCE COMPANY A MORTGAGE
COMPANY WERE BOTH MADE WELL
AWARE OF THE FACT THAT WE WOULD
HAVE TO USE ALL OF OUR INSURANCE
PROCEEDS TO REBUILD. AND BE LEFT
PRECARIOUSLY HOUSING TO THE
REBUILD WAS COMPLETE.
UNFORTUNATELY AFTER MY FAMILY I
ENTERED INTO A REBUILD CONTRACT
TO BEGIN THE PROCESS OF
REBUILDING THE APPROVAL OF OUR
MORTGAGE COMPANY. OUR MORTGAGES
AND TRANSFER TO A NEW MORTGAGE
SERVICER. AT THE TIME OF
MORTGAGE WAS TRANSFERRED OUR
REBUILD IS ROUGHLY 80% COMPLETE
AND ARE PROJECTED MOVE IN DATE
WAS ON THE HORIZON.
UNFORTUNATELY OUR NEW MORTGAGE
PROVIDER REFUSED TO RELEASE THE
FUNDS AS PREVIOUSLY AGREED WHICH
CAUSED SIGNIFICANT DELAYS
ULTIMATELY PUT MY FAMILY IN ME
IN A POSITION. WHERE WE WERE
FORCED REMAIN PRECARIOUSLY
HOUSED IN FEARFUL THAT WE MAY
NOT BE ABLE TO COMPLETE A
REBUILD. IS MY STRONG BELIEF
THAT MY FAMILY I NEVER SHOULD
HAVE GONE THROUGH THE TRAUMA
ASSOCIATED WITH LOSING OUR HOME
THEN FACING BOB. LIKE THIS THAT.
ENTIRE PREVENTIVE. MORTGAGES
SHOULD NOT BETRAY. TO ME I. THE
TOP AND I. A SURVEY. OF THE- TO
REBUILD. ACCORDING TO EXISTING
CALL. THE LOSS OF HER. ITSELF
INCREDIBLY PAINFUL BUT HONESTLY
IT IS LARGELY DEPENDENT
SECONDARY TRAUMA FROM ISSUES
LIKE THIS. THAT IS NEARLY BROKEN
US. THIS IS MY FAMILY AND I
WHOLEHEARTEDLY SUPPORT SB FOUR
FIVE FIVE. WE DO NOT WANT TO SEE
ANOTHER FAMILY FACE THE SAME
UNNECESSARY TRAUMA DELAYS AND
FINANCIAL HARDSHIP. WHAT IT
SHOULD. BE SO EASY TO PREVENT.
THANK YOU FOR YOUR TIME
SINCERELY NEED A HUGO. AND
BEYOND THAT I'M HERE TO ANSWER
ANY QUESTIONS. IF I CAN BE
HELPFUL. THANK YOU THANK YOU
THAT WAS SOME. SERIES OF SPEED
READING. THANK YOU. MY RATES. IT
WAS GOOD IT WAS GOOD. IS GOOD-
IT IS SO ANY ADDITIONAL
WITNESSES IN SUPPORT. THE NO
ADDITIONAL WITNESSES IN SUPPORT.
IN THE ROOM DO WE HAVE ANY
WITNESSES IN OPPOSITION IN THE
ROOM WHO WOULD LIKE TO TESTIFY.
SEE NO WITNESSES IN OPPOSITION-
IN THE ROOM WE WILL GO AHEAD TO
THE PHONE LINES MODERATOR CAN
REPEAT PLEASE. QUEUE UP- ANY
INDIVIDUALS WHO ARE WANT TO
TESTIFY FOR SENATE BILL FOUR
FIVE FIVE. LADIES AND GENTLEMEN
IF YOU WOULD LIKE TO TESTIFY
PLEASE PRESS ONE FOLLOWED BY
ZERO. FOUR SB FIVE BANK FOR.
EXCUSE ME IT'S S. B. FOUR FIVE
FIVE. THANK YOU I APOLOGIZE SB
FOUR FIVE FIVE SB FOUR FIVE FIVE
.
FINAL REMINDER IF YOU LIKE TO
TEST THE- TESTIFIED FOR SB FOUR
FIVE FIVE PLEASE PRESS ONE
FOLLOWED BY ZERO. I MEDICARE
NOBODY HAS QUEUED UP THANK YOU
VERY MUCH- SO MEMBERS WE WILL
BRING IT BACK TO ANY MEMBERS FOR
QUESTIONS OR COMMENTS OR EMOTION
. THANK YOU WE HAVE A MOTION BY
SENATOR BRADFORD I DON'T SEE ANY
MEMBERS WITH ADDITIONAL COMMENTS
OR QUESTIONS WOULD YOU LIKE TO
CLOSE RESPECT FASTER AND I DON'T
THINK YOU CAN MEASURE THANK YOU
ALRIGHT SO THIS. BILL IS A HAS A
DO PASS A BUT FIRST RE REFER
SHOCKING TO THE COMMITTEE ON
JUDICIARY- THAT CAN WE PLEASE
CALL THE ROLL. SENATE BILL FOUR
FIVE- I'M SORRY FOUR FIVE FIVE
MOTIONS TO PASS BUT FIRST BE
REFERRED TO THE COMMITTEE ON
JUDICIARY CENTER LIMÓN AYE LIMÓN
AYE HELLO HI HELLO I BRADFORD.
BRADFORD AYE CABALLERO. AYE MAN
. WHEN I WHEN I WHEN I
PORTANTINO. PORTANTINO HI WE
HAVE SEVEN ALL RIGHT THE BILL
HAS SEVEN VOTES THANK YOU VERY
MUCH MEMBERS WE WILL NOW GO
AHEAD AND OPEN THE- THE ROLE FOR
ANY MEMBERS TO ADD ON. WE WILL
BE JANET WITH US SENATE BILL.
FIFTY FOUR. SENATE BILL FIFTY
FOUR MOTION IS DUE PASSED BUT
FIRST BE REFERRED TO THE
COMMITTEE ON JUDICIARY. WITH THE
CHAIR VOTING I. SENATOR COMING
OUT- CABALLERO I. WHEN
PORTANTINO. HI THAT S. FIVE ALL
RIGHT THAT HAS FIVE VOTES A
NEXUS SENATE BILL TWO SEVEN
EIGHT. SENATE BILL TWO SEVEN
EIGHT MOTION IS DUE PASSED BUT
FIRST BE REFERRED TO THE
COMMITTEE ON JUDICIARY CENTER
LIMÓN VOTING I. SENATOR BRADFORD
. SENATOR NGUYEN. ALL RIGHT THAT
HAS FOUR VOTES NEXT IS A SENATE
BILL FOUR FIVE FIVE. WITH THAT
WE JUST DID THAT SORRY THAT
EVERYONE VOTED ON THAT NEXT WE
HAVE US SENATE BILL FIVE NINE
FOUR. SENATE BILL 954-594-0594
SORRY MOTION IS DUE PASSED BUT
FIRST BE REFERRED TO THE
COMMITTEE ON JUDICIARY THE CHAIR
IS VOTING I. SENATOR WHEN.
SENATOR NGUYEN NO. IT HAS ALL
RIGHT THAT HAS FIVE VOTES AND
THE FINAL ITEM IS THE CONSENT
CALENDAR. THE CONSENT CALENDAR
THE CHAIR VOTING I SENATOR WHEN
I WHEN I PORTANTINO. PORTANTINO
HI. THEN CABALLERO. I'M SORRY.
YES COLORADO CONSENT CONSENT OF
THE- YOU CAN READ OUR SERVICIOS
STUFF THAT YEAH ALL RIGHT THE
CONSENT TO HAS SEVEN VOTES AND
WITH THAT MEMBERS WE WILL GO
AHEAD AND A JOURNAL OUR
COMMITTEE ON BANKING AND
FINANCIAL INSTITUTIONS.