MADAM SECRETARY IF YOU WILL
ESTABLISH A QUORUM.
SENATORS BERRYHILL.
BERRYHILL HERE MINING.
ROTH.
ROB HERE CANNELLA.
ATKINS HERE ATKINS HERE.
THANK YOU.
.
WELL I WOULD GO AHEAD AND.
TAKE ITEMS.
TWO THROUGH.
WOW.
TO THREE. AND I GET A MOTION WE
CAN LEAVE THE WORLD OPEN OKAY.
SO IF I CAN HAVE A MOTION ON
ITEMS TWO THROUGH FOURTEEN.
THANK YOU. MOVE BY MR BERRYHILL.
CALL THE ROLL. SENATORS
BERRYHILL. BERRYHILL AYE MONNING
ROTH.
ROUGH AYE CANNELLA ATKINS AYE
ARKANSAS AYE.
OKAY COULD YOU AND WE WILL KEEP
SEVERAL OPEN. AND WE WILL MOVE
RIGHT INTO OUR FIRST GOVERNOR'S
APPOINTMENT.
AND I THINK WE HAVE MISTER
ROGERS SET UP.
AND READY TO GO.
CHIEF OFFICE OF TECHNOLOGY
SERVICES.
COME ON BOARD OUR YOU.
WELL THANK YOU.
LET ME.
ASK IF YOU WANT TO INTRODUCE
ANYONE YOU MIGHT HAVE WITH YOU
TODAY AND THEN GO AHEAD AND MAKE
YOUR OPENING COMMENTS. ATHLETE
WOULD. WE SHOULD AT THE KEY
MADAM PRO TEM AND MEMBERS.
HELLO THANK YOU FOR GIVING
OPPORTUNITY INTRODUCED MY FAMILY
MEMBERS.
.
IT'S BEEN A.
I WOULD LIKE TO TAKE THIS NAM
OPPORTUNITY.
S. HEY ARE THE REASONS AN
EXAMPLE WHY I CHOSE.
PUBLIC SERVICE AS MY CAREER.
SO FIRST OF ALL MY FATHER JAMES
ROGERS.
WHO S. TODAY CYCLE THAT?
AND TIME HE HONORED THIS IN THIS
COUNTRY ANSWER DON'T THREE WARS
FORWARD TO KOREA AND VIETNAM.
HE ALSO PROVIDED STATES SERVICE
WHERE HE SPENT MOST OF THE STATE
CAREER AND THE CALIFORNIA YOUTH
AUTHORITY.
MY.
MOTHER LENA ROGERS WHO ACTUALLY
TAUGHT ME HOW TO BE PATIENT.
VERY.
AND MY PARENTS HAVE BEEN MARRIED
FOR SEVENTY THREE YEARS.
TODAY HAPPENS TO BE THE
FIFTIETH ANNIVERSARY AFTERMARKET
THE KING ASSASSINATION IN THE
REASON WHY BRING THAT UP IS THAT
MY PARENTS WERE.
.
HIGH SCHOOL COLLEGE ABOUT
MEMBERS FOR WITH MARTIN LUTHER
KING.
SAW HOW BACK IN ATLANTA GEORGIA.
THOUGH THEY THEY HAVE THAT
RELATIONSHIP WITH THEM.
MOM I OFTEN HAVE MY BROTHERS
CURTIS AND CALVIN ROGERS WHO
HAVE PROVIDED OVER FIFTY FIVE
YEARS OF LEADERSHIP FOR THE
STATE OF CALIFORNIA.
AND TOM. MY KIDS ARE NOT ABLE TO
BE HERE TODAY BUT THEY'RE
WATCHING ON THE WEB. THAT'S
VALINE.
BRIAN AND ROSHAN.
AND LASTLY OF COURSE MORE
IMPORTANTLY. IT AS MY WIFE
PATRICIA.
AND.
YEAH NOW.
I WOULDN'T BE HERE TODAY IT
SHOULDN'T GIVE ME THE DATA DAY
SUPPORT THAT HAVE NEEDED.
NAM.
SHE'S ALSO PROVIDED OVER TWENTY
EIGHT YEARS OF STATES SERVICE.
THE LAST MY FAMILY MEMBERS THANK
YOU BEFORE YOU START.
ELIMINATE TO SAY WELCOME I TEAR
FAMILY ON THIS.
IMPORTANT OCCASION
OF.
.
OF THE FIFTIETH ANNIVERSARY BUT
ALSO THANK YOU FOR YOUR SERVICE
TO THE COUNTRY.
THREE YEAH I I MEAN WORLD WAR
TWO AMAZING KOREA AND VIETNAM.
THAT'S INCREDIBLE SERVICE AND I
CITY OF A FAMILY OF PUBLIC
SERVICE SO. WELCOME.
AND BEFORE YOU KICK OFF YOUR
COMMENTS LET ME WELCOME.
.
I TWO NEW MEMBERS.
TO THE RULES COMMITTEE NOT NEW
TO THE SENATE OF COURSE BUT. OUT
NEW TO THIS COMMITTEE MISTER
MONNING AND MISTER ROTH.
AND THOUGH WE NOW I HAVE A FULL
ON RULES COMMITTEE HERE. MISTER
ROGERS CONTINUE. HER THANK YOU.
AGAIN IT'S BEEN EXTREME HONOR TO
BE HERE BEFORE YOU IT'S A PLATE
RICH.
TO BE OUR.
THE GOVERNOR BROWN'S APPOINTEE
AS CHIEF OF OFFICE OF TECHNOLOGY
SERVICES.
I HAVE BEEN PERHAPS PUBLIC
SERVANT PROVIDING TECHNOLOGY
CAMPUSES SERVICES FOR THE STATE
OF CALIFORNIA FOR OVER THIRTY
YEARS.
AND I UNDERSTAND AND APPRECIATE.
THE GREAT RESPONSIBILITY THAT I
HAVE TO THE STATE AND LOCAL
GOVERNMENT ENTITIES ASK WE'VE
COLLECTIVELY WILL BE PROVIDING
SERVICES.
FOR THE CITIZENS AND BUSINESSES
FOR CALIFORNIA.
I DID HAVE TWO MAIN GOALS THAT I
WANT TO ACCOMPLISH IN THIS JOB.
THE FIRST HIS TO PROVIDE TIMELY
THINK HEAR RESILIENT AND COST
EFFECTIVE.
NAM.
TECHNOLOGY SERVICES.
THE ACT ARM BEST MEET MY NAM
CUSTOMERS BUSINESS SERVICES.
WHY THEY'RE THEY'RE RESPONSIBLE
FOR DELIVERING FOR THE STATE OF
CALIFORNIA?
AND SECONDLY. WHICH IS POLY MORE
IMPORTANTLY IS TO HELP ENABLE MY
ON STATE OR LOCAL GOVERNMENT
ENTITIES TO BE ABLE TO CONSUME
NO SERVICES.
AS SOON AS THAT THEY'RE
AVAILABLE THOUGHT THAT THEIR
IMMEDIATELY ABLE.
TO PROVIDE ENHANCED BUSINESS
SERVICES FOR THEIR STATE.
AND RESIDENTS AND BUSINESSES OF
CALIFORNIA.
YOU VERY MUCH MISTER ROGERS I
THINK WE'RE GOING TO GO AHEAD
AND I GO TO QUESTIONS COMMENTS
FROM THE MEMBERS.
MISTER MONNING LET ME START ON
THIS SIDE START WITH YOU.
THANK YOU MADAM CHAIR AND. A
FIRST IT'S A PRIVILEGE AND AN
HONOR TO JOIN THE RULES
COMMITTEE THANK YOU FOR THAT
OPPORTUNITY. AND MISTER ROGERS
CONGRATULATIONS ON YOUR
APPOINTMENT AND THANK YOU FOR
GIVING US THE OPPORTUNITY TO GET
BETTER ACQUAINTED.
TOM AND.
A SALUTE TO YOUR FAMILY AS WELL
WE'VE REFERENCED AS BEING BIG
SUPPORTERS.
BUT WE DID HAVE THE OPPORTUNITY
THE TENNIS TALK BRIEFLY
YESTERDAY AND.
I FOUND YOUR KNOWLEDGE OF THE
SCOPE OF SERVICES TO BE.
IMPRESSIVE ONE OF THE AREAS
THAT I ASKED ABOUT MY THING THE
COMMITTEE WOULD FIND OF INTEREST.
IN THIS ERA OF CYBER THREATS OF
HACKING OF. OTHER GOVERNMENTAL
ENTITIES SUFFERING. THOSE
IMPACTS
WHAT'S YOUR ENSE OF. THREATS
THAT WE FACE AND.
UNDER YOUR LEADERSHIP HOW WOULD
WE MINIMIZE THOSE THREATS.
YEAH.
AS YOU KNOW STATE A CALIFORNIA
IS THE SIXTH LARGEST ECONOMY
FELLOW WERE A BIG TARGET FOR AYE.
PEOPLE TO ATTACK US.
AND SO I'VE BEEN WORKING
STRATEGICALLY WHERE ARE WHAT WE
BECAUSE THE FOUR CORE WHICH IS
CALIFORNIA OFFICE OF EMERGENCY
SERVICES.
WITH CALIFORNIA HOW WE PATROL.
OUR TOWN DEPARTMENT A TECHNOLOGY
INFORMATION SECURITY OFFICER.
ASK PAUL US DEPARTMENT A
MILITARYHAS THE BAY ARE
PROVIDING A CYBERSECURITY
DEFENSE FOR THE STATE OF
CALIFORNIA. WHAT WE DID WAS WE
ACTUALLY PROVIDE A PERIMETER?
LEVERAGING MY HALF OF STRUCTURED
MY WAY AND INFRASTRUCTURE SO.
ALL INTERNET ACCESS IN AND OUT
HOUSE IS BEING PROTECTED BY
THOSE ENTITIES AND I PROVIDE THE
ROADS WITHIN A GATED COMMUNITY.
SAU COLLECTIVELY THAT'S HOW
WE'RE PROTECTING OUR OUR HALF
SINCE WITHIN THAT STATE DATA
CENTER.
AND IF YOU HAD TO THE SITE.
PARTICULAR AREAS OF CONCERN OR
SUSCEPTIBILITY IS A.
SO ANYTHING WE NEED TO BE DOING
THAT WHERE.
CURRENTLY NOT DOING HAD A WE
FORTIFY. THAT DEFENSE PERIMETER
THAT YOU DESCRIBED.
YEAH TOM. THAT STATE I ESTO
HACER ACTIVE ROLL BACK TO BETTER
INSURER HAMPER ATTACKED US ODD
WERE ONLY IN THE FIRST YEAR OF
HIS ROADMAP AND SO EACH AND
EVERY YEAR WE ARE GOING TO HAVE
A BETTER PROTECT INDOMETHACIN.
MECHANISM.
THANK YOU ANNUM YOU DID FOLLOW
UP PROVIDING US SOME INFORMATION
ON THE RECENT
CYBER ATTACKS
ON THE CITY OF ATLANTA I
APPRECIATE THAT QUICK FOLLOW UP
THAT YOU PROVIDED.
.
BUT I THINK MY FINAL AREA OF
INQUIRY NEW SHARED SOME OF THIS
BIT. OF.
HOW YOU RATE CALIFORNIA OUR
ABILITY IN? SHARING INFORMATION
AND. LANGUAGE APPROPRIATE NAM.
TRANSLATIONS TO THE CUSTOMER
BASE YOU REFERRED TO THAT WE.
RELY ON TECHNOLOGY SERVICES FOR
MUCH OF OUR INTERFACE WITH THE
PUBLIC.
YEAH.
AND THE REASON WHY WE RELY SO
MUCH THE TECHNOLOGY THAT ALLOWS
US TO. ENABLE SELF SERVICE SO
THAT OUR CUSTOMER COMMUNITY IS
ABLE TO ACCESS OUR SERVICE
WHENEVER IT'S CONVENIENT FOR
THEM. BUT THERE ARE GAPS IN SOME
OF THE TECHNOLOGIES WHERE IT
DOES NOT ACTIS THAT A PROVIDE A
HUNDRED PERCENT COMMUNICATION TO
ALL OF THEIR. CONSTITUENTS OF
CALIFORNIA IN WHICH CASE WE
STILL WILL HAVE TO RELY ON.
HUMANS TO BE ABLE TO BRIDGE THAT
GAP.
THOUGH AND I KNOW THAT'S WHAT
WE'VE TALKED ABOUT.
AND SEVEN COURAGE THERE'S STILL
A ROLE FOR HUMANS IN. THE FUTURE
OF OUR.
OF OUR STATE SERVICES GREAT.
THANK YOU THANK YOU MADAM CHAIR
THANK YOU MISTER ROGERS THANK
YOU MISTER MONNING MISTER
BERRYHILL.
THANK YOU I DON'T KNOW MUCH OF A
VOICE SO WE'LL KEEP IS VERY
SHORT BONTA CONGRATULATIONS FOR
BEING HERE TODAY.
I WAS CURIOUS SO WHAT LESSONS
HAVE YOU LEARNED WITH THE OFFICE
THREE SIXTY FIVE PROJECT.
FROM HOW DOES THAT IMPACT YOUR
PLANS TO SENATOR LE IS.
FUTURE PRODUCTS AND SERVICES.
I THINK WE LEARNED QUITE A BIT
AS WE HAVE BEEN IN OFFICE THREE
SIXTY FIVE.
FOR THOSE PEOPLE THAT I KNOW.
WHAT WE DID WAS WE CONSOLIDATED
TO HAVE A SINGLE EMAIL SYSTEM
FOR THE STATE OF CALIFORNIA?
AND SO WE WORKED WITH EACH OF
OUR CUSTOMERS TO BE ABLE TO MAKE
THAT HAPPEN IN TRANSITION WITH
AN EIGHTEENTH MONTH PERIOD.
AND SO SOME OF THE THINGS THAT
WE'VE LARNED IS WE WANTED TO BE
THE FIRST PILOT TO UNDERSTAND
HOW TO DO THE MIGRATION. AND
THEN WE WORK WITH OUR COMMUNITY
TO SHARE OUR EXPERIENCES AND
LESSONS LEARNED. SOME OF OUR
CUSTOMERS HAN HAD CHALLENGES TO
BE ABLE TO MOVE OVER FOUND
DIDN'T HAPPEN NECESSARILY THAT
TECHNICAL EXPERTISE OR THE
FUNDING TO DO THE MIGRATION SO
WE WERE ABLE TO WORK WITH THE
VENDOR COMMUNITY.
SO THAT THEY WOULD BE ABLE TO
FILE ASSISTANCE IN HELPING DO
THAT MIGRATION.
SO TO ENACT COLLABORATION EFFORT
WITH OUR CUSTOMER COMMUNITY HAS
BEEN GREAT AS FAR AS THE HAS
SHARED RESOURCE AND SO WERE
HOPING TO PROVIDE A LOT MORE
THOSE CAPABILITIES IN THE FUTURE
WITH MORE OF OUR TECHNOLOGY
SERVICE.
I DO LE. WHAT IS YOUR PROCESS?
TO DETERMINE. THE NEW TECHNOLOGY
OR SERVICE SHOULD BE INCLUDED IN
YOUR STANDARD SERVICE OFFERINGS.
THE FIRST OF FOUR MILES IS THE
C. F. WE HAVE. A AND NUMBER OF
CUSTOMERS THAT'S INTERESTED IN
THAT SERVICE.
NOW ONE OF THE WAYS THAT WE NEED
TO KEEP OUR COSTS DOWN IS NOT TO
HAVE SO MANY ONE OFFS.
THOUGH IF WE DID HAVE A HIGH
ADOPTION RATE THEY WERE ABLE TO
OFFER A COST EFFECTIVELY. IF NOT
THEN WE ENCOURAGE OUR CUSTOMERS
IF THAT REALLY MISTER BUSINESS
NEEDS TO GO OUT AND WEEK A
PARTNER WITH THEM TO FIND. YOU
KNOW ON A PROPER AND SERVICE
PROVIDERS THAT CAN HELP PROVIDE
THAT SERVICE
SO WHERE PARTNERING YOU KNOW
EITHER WE ARE PROVIDING THAT
SERVICE OR WILL WORK WITH THAT.
THEIR PARTY PROVIDERS TO
PROVIDE THOSE ADEQUATE SERVICES
THAT COULD MEET OUR BUSINESS
NEEDS.
GREAT THANK YOU NO FURTHER
QUESTIONS. THANK YOU VERY HEALTH
ARE VICE CHAIR MISTER CANNELLA.
THANK YOU MISTER ROSS.
THANK YOU.
MEN PRO TEN.
WE HAVE NEW MISTER ROGERS
DEFINITE YEAH I'VE SPENT ABOUT
SIX YEARS APPEAR. ON THE BUDGET
SIDE OF WHAT WE DO DEALING WITH
A RATHER LARGE SCALE. PROGRAM
MANAGEMENT ISSUES.
BUT NOT SO MUCH ON WHAT YOU DO.
SO I GUESS WHAT I'D LIKE TO TALK
TO YOU ABOUT IS.
MODERNIZING TECHNOLOGY AND.
AND MY QUESTIONS ARE THESE HOW
BIG A PROBLEM IS IT THAT WE USE.
.
OUTDATED TECHNOLOGY HERE IN.
WHAT WE DO IN STATE GOVERNMENT?
AND IF IT IS A PROBLEM WHAT IS
THE PLAN THAT YOU FIRST SEE.
FOR FIXING THAT.
IT IS A PROBLEM BECAUSE IT THEIR
FORCES US TO HAVE TO SUPPORT
MANY VERSIONS AND SUPPORT
OUTDATED NATIVE. ARM
INFRASTRUCTURE AND REALLY IT
SEEMS LIKE. OF THE PROBLEM AND
WE CAN'T FORCE OUR CUSTOMERS TO
MOVE FORWARD BECAUSE IF WE SHUT
THEM DOWN THERE WERE NO LONGER
PROVIDING SERVICES FOR OUR
CONSTITUENTS.
SO WHY MY PLAN AS IN WHAT I
STARTED SINCE I'VE BEEN IN THIS
OFFICE IS TO WORK WITH SERVICE
LEVEL AGREEMENTS SO WE HAD A
CLEAR UNDERSTANDING OF WHAT'S MY
RULED IN MY RESPONSIBILITY AND.
THE RESPONSIBILITY OF OUR
CUSTOMERS SAYS PROVIDING THE
BUSINESS APPLICATIONS THAT'S
RUNNING ON MY INFRASTRUCTURE.
AFTER THAT WE IDENTIFIED THE
BEST PRACTICES YOU KNOW TO GET A
GRANDSON YOU KNOW HOW FREQUENTLY
SHOULD WE BE REFRESHING
INFRASTRUCTURE AND ENOUGH SHOULD
WE HAVE FIVE BILLETED IN HOW YOU
ACHIEVE HIGH ABILITY AND
DISASTER RECOVERY.
AND ONCE WE HAD THAT AGREEMENT
WHICH WE DO TODAY WE HAVE A
PUBLISHER WEBSITE.
THEN I ACTIVELY WHAT'S PROACTIVE
TO CREATE A GAP ANALYSIS
IT PROVIDED THAT EACH MY
CUSTOMERS SO THEY UNDERSTAND
WHERE WE NEED TO GO.
AND I WORKED WITH THEM TO SEE
WHAT A YEAR CHALLENGES THAT'S
PREVENTING YOU. FROM BEING ABLE
TO MEET THE STANDARD.
AND HAS I WORKED WITH THEM SAID
THAT BABY NEEDING ASSISTANCE
FROM US.
AND THEY'RE GONNA COME UP WITH A
GAME PLAN TOGETHER MOVE FOR IT
SO WE CAN GET AWAY FROM HAVING.
THOSE OBSOLETE INFRASTRUCTURE
PLATFORM CHALLENGES THAT WE HAVE
TODAY.
DON IF THEY DID HAVE CHALLENGES.
I BEEN WORKING WITH A COUPLE
CUSTOMERS ARE READY WHERE THEY
MOVE FOR WHAT THAT BCP. FOR
INFRASTRUCTURE AND I WORKED WITH
THE DEPARTMENT OF FINANCE TO
HELP MAKE SURE THAT THOSE THINGS
ARE APPROVED. AND MAKE SURE THEY
HAD APPROPRIATE ROADMAP SO THAT
WE CAN MOVE FORWARD FELL IT'S
TRULY A PARTNERSHIP BETWEEN MY
OFFICE IN EACH CUSTOMER UNITY.
COULD BE ABLE TO MOVE FORWARD.
WELL YOU KNOW WE HAVE A WAY OF.
AND SUGGESTING TO PEOPLE THAT
THEY MOVE FORWARD WITH
IMPROVEMENTS THAT REDUCED COSTS
AND MAKE GOVERNMENT MORE
EFFICIENT.
DOES THE USE OF LEGACY.
SYSTEMS.
OR ANTIQUATED SOFTWARE OR
EQUIPMENT
INCREASED COST EITHER FOR YOU'RE
FOR THE AGENCIES AND DEPARTMENTS
INVOLVED. IT DEFINITELY DOES
MOST OF THE TIME.
NEWER RELEASES A SOFTWARE AND
HARDWARE COMES UPS WITH
ADDITIONAL FUNCTIONALITY THAT
GIVES US THE ABILITY. TO MANAGE.
MORE AT THAT INFRASTRUCTURE
THOSE COMPONENTS WITH LAST
RESOURCE.
FELT THEREFORE I AM ABLE TO DO
IT MUCH MORE COST EFFECTIVELY
THEM WHEN I HAVE TO SUPPORT.
THINGS LIKE WINDOWS SERVER TWO
THOUSAND THREE WHICH IS AN
OPERATING SYSTEM THAT'S BEEN
AROUND FOR FIFTEEN YEARS AND
HYPE SUPPORTING. FIVE DIFFERENT
VERSIONS OF OPERA SYSTEM THAT'S
NOT VERY COST EFFECTIVE FOR MY
STAFF TO HAVE.
AND HAS A LEGISLATURE. HOW CAN
YOU HELP US HAVE VISIBILITY OVER
THAT SORT OF?
CHIU ATION SPECIFICALLY THE
SITUATION WHERE OF LEGACY
SYSTEMS ARE MAINTAINED
ANTIQUATED EQUIPMENT OR SOFTWARE
CONTINUES TO BE USED. DESPITE
YOUR RECOMMENDATION.
SO AS WE MOVE FORWARD AND WE
HAVE A GAME PLAN WITH MY
CUSTOMER COMMUNITY. WE WILL PUT
FORWARD IF WE NEED BCP FOR
FINDING OR RE SERVICES OR
WHATEVER ELSE MY CUSTOMER
COMMUNITY NEEDS WE WILL FIND OUT
FOR.* RESOURCES WITHIN A BCP
IF THERE IS A NEED ARM AS I
STATED BEFORE. I.
MOST THE OF THAT LEADERSHIP AND
STATE GOVERNMENT TODAY HAVE COME
INTO AN ENVIRONMENT WHERE THEY
HAVE SYSTEMS HAS BEEN DEPLOYED
FOR OVER TWENTY YEARS SO THEY
DON'T KNOW WHAT THEY HAVE.
SO PART OF WHAT I HAD TO DO WAS
TO EDUCATE THEM SO NOW THAT
THERE ARE WHERE WE GOT TO GIVE
THEM THE OPPORTUNITY TO DO
SOMETHING WITH THAT.
I AM I BELIEVE THAT YOU KNOW
I'VE BEEN PARTNER WITH THEM WE
WILL MAKE THIS HAPPEN.
AND I COMMITTED TO BE HERE THE
BABYLON BEFORE AND BEFOREI
LEAVE WHO HAVE A STRONG ROADMAP
TO BE ABLE TO PROPEL AND
MITIGATE OUT.
ONE LAST QUESTION ON THIS
SUBJECT A MADAM CHAIR BEFORE I
MOVE ON TO MY. FINAL WHEN WAS
COMMISSION.
ARE YOU THE ONLY ONE PUSHING FOR.
UPGRADES FOR MOVEMENT FROM
LEGACY SYSTEMS TO MORE MODERN
SYSTEM ARE DO YOU GET SUPPORT
FROM.
THE BIGGER ADMINISTRATION ON
THIS ISSUE AND IF SO HOW. I
DEFINITELY GET SUPPORT FROM. OUR.
DIRECTOR TONG FROM DEPARTMENT
WE WORKED WHERE EACH OF THE
AGENCY INFORMATION OFFICERS
ASHEIM EDUCATING THEM AS WELL AS
THEY COMMUNITY DAY YOU HAD
LEVERAGES OUR SERVICES.
AND SO WHAT WE'RE DOING IN S.
WERE WORKING OUT WITH A GAME
PLAN AND SO SOME OF THE
CUSTOMERS KNOW. THAT IF WE DON'T
GO FORWARD IT'S MORE COSTLY
AND WE'VE WHAT AND I'M ONE TOO
ENCOURAGED AND HAVE MORE BY HAND.
WITH OUR SERVICES AND THEY HAVE
A SAY ON OKAY HOW MUCH TIME DO
WE GIVE EVERYBODY THE CAPABILITY
CATCH UP. UNTIL WE START
PENALIZING THEM WITH ADDITIONAL
FUNDING OR FEES IN ORDER TO YEAH
NOW SO IT'S COST EFFECTIVE RIGHT
WE SHOULDN'T PENALIZE THE PEOPLE
THAT'S DOING THEIR DUE DILIGENCE
THE STATE CURRENT.
HEY YOU KNOW WHY WERE FAME BACK
WITH THE OTHER FOLKS SO IT'S
KIDNAPPED BY AND WITH THE CUSTOM
COMMUNITY AND WE'RE DEATHLY.
IF WE DO ONE.
GOOD FOR YOU LET ME SHIFT GEARS
TO PERSONNEL ONE OF THE THINGS
THAT AS I RECALL. WE SAW ON A
LARGE SCALE.
PROJECTS
WHERE I WAS SOMEONE INVOLVED
WITH OVERSIGHT OVER PROGRAM
MANAGEMENT.
HAD TO DO WITH PERSONNEL
ATTRITION.
DO YOU SEE.
PERSONNEL MOVEMENT IN YOUR
OPERATION.
AND WHAT IS THE PLAN TO DEAL
WITH IT.
YEAH.
I THINK FOR INFRASTRUCTURE
TECHNOLOGY STAFF AS A WHOLE IN
THE STATE OF CALIFORNIA I THINK
I SAW THAT. LOAN POSSIBLY FIFTY
PERCENT OF OUR IT STAFF. ON WILL
BE ELIGIBLE FOR RETIREMENT IN
THE NEXT FIVE YEARS AND I KNOW
WITHIN MY OFFICE.
ODDLY I THINK IT'S FIFTY FOUR
PERCENT OF MY SOUTH WILL BE
ELIGIBLE FOR RETIREMENT IN FOUR
YEARS THOUGH IT IS A MAJOR
CONCERN. HA. Y. NOTHING SENT
WORD OF WORKING NOT ACTIVELY IS
THAT.
MOST OF MY CHALLENGES IS TO
CONTINUE TO SUPPORT BOTH LEGACY
TYPE SYSTEMS IS A LOT EASIER TO
FIND. TACTICAL RESOURCES FOR
MORE CURRENT SOLUTIONS THAN IT
IS FOR LEGACY
WE DO HAVE A TRAINING PROGRAM.
COULD HELP YOU WITH THE
UNIVERSITIES TO SUPPORT LEGACY
SYSTEMS BACK THAT'S WHY WERE
ACTIVELY WORKING WITH OUR
CUSTOMER COMMUNITY.
TO MOVE MOST UP OFF OF THOSE
LEGACY SYSTEM SO WE CAN GET. YOU
KNOW THE RIVER THAT IT RESOURCES
AVAILABLE IN THE COMMUNITY.
IN ADDITION TO THAT HAN.
THE TYPICAL IT NAM BREAK UP WITH
THEIR AT TYPICAL IN EIGHTY S..
BUT THEN THE STATE DEPARTMENT OR
A LOCAL DEPARTMENT. OVER FIFTY
PERCENT OF THEIR IT STAFF.
IS SUPPORTING INFRASTRUCTURE
THAT MEANS SUPPORTING
WORKSTATIONS NETWORKS TELEPHONY
NAM PROVIDING SERVICE.
SERVICE TASK.
COMPUTER ROOMS SERVERS STORAGE
THING SAYS NOT REALLY PERTINENT
TO THOSE DEPARTMENT ENTITIES
ONLY THIRTY PERCENT OF THEIR IT
STAFF.
IS.
SUPPORTING THE CRITICAL
APPLICATIONS THAT THOSE. ARE
RESPONSIBLE FOR.
SO WHAT I'M TRYING TO DO IS TO
PROVIDE THOSE TECHNOLOGY
SERVICES
SO THAT I CAN TAKE THAT WORKLOAD
AWAY FROM THEM SO THEY KEY
REDIRECT THAT CRITICAL STAFF.
INPUT MORE OF IT TOWARDS THOSE
APPLICATIONS SERVICES THAT
THEY'RE RESPONSIBLE FOR
DELIVERING. SO WE'RE WORKING AS
A SINGLE IT COMMUNITY TO SOLVE
THIS PROBLEM.
THAT IS THE BEST WAY THAT WE CAN
DO THIS THAT OTHERWISE REDUCE
ROBIN EACH OTHER THE BEST ASSETS.
AND WE'RE GONNA SURVIVE
INDEPENDENTLY.
WELL OTHER THAN LEGACY SYSTEMS
TRAINING AND EXPERIENCE ARE
THERE ANY OTHER IMPEDIMENTS TO.
RECRUITING AND RETENTION THAT
YOU SEE OR ANTICIPATE SEEING IN
THE FUTURE.
SUCH AS PERHAPS ARE WAGING
BENEFITS SCHEDULE OR OTHER
SIMILAR ISSUES.
I THINK.
WHERE WE HAVE MAY HAPPEN
CHALLENGE IN ANY PARTICULAR
SKILL SETS? WERE ABLE TO DEPEND
UPON OUR VENDOR COMMUNITY TO
HELP CON MEN TO DO A TEMPORARY
AUGMENTATION OF OUR OUR
WORKFORCE AND. TO DO A KNOWLEDGE
TRANSFER SO THAT WE ARE ABLE TO
BEEF UP IN THOSE PARTICULAR
AREAS.
I.
I I THINK.
FROM I LIKE I SAID I'VE BEEN IN
THIS FIELD FOR OVER THIRTY YEARS
I THINK THAT THEIR CRITICAL
AREAS THAT WE SEE HAVING A
PROBLEM IS IN THE APPLICATION
AREA. AND I THINK WE'RE GOING TO
HAVE A GOOD STRONG ROADMAP TO BE
ABLE TO FILL THAT GAP.
THANK YOU THANK YOU FOR YOUR
SERVICE THANK YOU MADAM CHAIR.
THANK YOU MISTER OFF THEIR DEBT
TO HELP ON YOUR BUDGET SO FOR.
.
IF THANK YOU THEN NO I THINK I
THINK THERE WAS VERY HELPFUL IN
TERMS OF LEARNING.
WE'RE GONNA ASK.
PEOPLE WHO ARE HERE TO SUPPORT
OF THE NOMINATION TO COME
FORWARD WE HAE.
MIKE OVER HERE AND SO IF THERE'S
ANYONE HERE IN SUPPORT.
OPPOSITION.
THAT'S GOOD OTHER COMMENTS.
OKAY WITH THAT.
I'M HAPPY TO ENTERTAIN A MOTION.
THANK YOU MR VICE CHAIR ALL IN
FAVOR. CALL THE ROLL.
SENATORS BERRYHILL. BERRYHILL
AYE MONNING. MINING AYE ROTH I'M
ROTH AYE CANNELLA AYE CANNELLA
AYE ATKINS.
CONCISE WRITERS CONGRATULATIONS
THANK YOU.
GOOD IDEA.
THANK YOU MADAM SECRETARY I
THINK I WILL LIFT THE CALL ON.
.
ITEMS TWO THROUGH FOURTEEN.
AND CALL THE ROLL SENATORS
MONNING.
MONNING AYE. CANNELLA CANNELLA
AYE.
FIVE ZERO FIVE ZERO THAT IS.
DONE OKAY.
LET ME GO AHEAD AND ASK.
MISTER NICHOLAS.
MADURO'S YOU'RE GONNA HAVE TO
TELL ME IF I SAID THAT
INCORRECTLY.
OKAY.
THIS IS AN APPOINTMENT AS
DIRECTOR FOR THE CALIFORNIA
DEPARTMENT OF TAX AND FEE
ADMINISTRATION.
BUT WHEN YOU ARE READY WHY DON'T
YOU INTRODUCE.
ANYONE THAT MIGHT BE WITH YOU
TODAY AND THEN. MOVE FORWARD
WITH YOUR STATEMENT THANK YOU TO
THE COMMITTEE FOR HAVING ME.
AND ALSO I THINK MY PARENTS
BILL AND GAYLE MADURO'S AND MY
BROTHER PETER MAJOR US WHO HAVE
MADE THE TRIP UP FROM MY
HOMETOWN STOCKTON TO BE HERE
WITH ME TODAY.
UNFORTUNATELY MY WIFE IS ON HER
WAY TO GIVE A GUEST LECTURE AT
MICHIGAN STATE UNIVERSITY. AND
MY THREE GIRLS ONE IS NINE AND
TWINS WHO WERE SEVEN ARE IN
SCHOOL. LET'S PROBABLY A GOOD
THING THAT YOU'RE NOT HERE SINCE
I BOARD THEM EVEN WEN I'M. NOT
TALKING ABOUT TAX ISSUES.
.
AND JUDGES.
RIGHT AHEAD WITH YOUR RATE. OF
BOTTLES LIKE TO THANK THE
GOVERNOR AND SECRETARY BACHELOR
FOR GIVING ME THE OPPORTUNITY TO
SERVE.
AND I'D LIKE TO THANK THE ENTIRE
TEAM AT CDT FAA WHERE I'VE BEEN
FOR ALMOST NINE MONTHS FOR ALL
OF THEIR HARD WORK IN STANDING
UP A NEW DEPARTMENT.
MY NAME IS TO ADMINISTER CTF
FACE TAX AND FEE PROGRAMS THE
WAY THAT IS FAITHFUL TO THE LAWS.
THAT THE LEGISLATURE HAS PASSED.
COMMITTED TO DOING THAT EXIST.
CAN
UNMINDFUL THE TAXPAYERS ARE
WORKING HARD TO PAY.
SUPPORT OUR EFFORTS.
I'M ALSO COMMITTED TO OPERATE IN
THE DEPARTMENT IN THE WAY THAT
IS FAIR TRANSPARENT AND BEYOND
ETHICAL REPROACH.
IT'S AN HONOR TO BE HERE AND I
LOOK FOR TO ANSWERING ANY
QUESTIONS.
MAY HAVE.
IMMEDIATE DEPARTMENT OR OUR WORK.
THANK YOU SO MUCH FOR HAVING.
THANK YOU SO MUCH WHY DON'T I.
.
START ON THIS SITE NOW MISTER
ROTH YOU'RE ON A ROLL SO. AND
THIS IS ALSO AN AREA I KNOW THAT
YOU ARE.
QUITE WELL VERSED IN SO.
PLEASE.
ARE YOU.
FINE THANK YOU. SEE
CONGRATULATIONS.
AS YOU KNOW I SPENT A LITTLE
TIME ON THE BOARD OF
EQUALIZATION ISSUE OVER THE LAST
YEAR OR SO.
I GIVEN THE FACT THAT WE'RE IT'S
ANYWHERE AND IT'S A NEW
OPERATION ARE THERE ANY
UNRESOLVED OF STRUCTURAL ISSUES
THAT YOU HAVE IDENTIFIED THAT
YOU BELIEVE WILL REQUIRE SOME
LEGISLATIVE ATTENTION.
THANKS FOR THE QUESTION THERE
ARE A FEW ISSUES.
STRUCTURALLY THAT I WOULD
HIGHLIGHT.
IN THE TRANSFER IS AS YOU'RE
CERTAINLY WHERE ALL OF THE
CONSTITUTIONAL DUTIES REMAINED
WITH B. O. WE AND THE STATUTORY
DUTIES WERE.
TRANSFERRED TO CD TFA.
IN THAT.
.
A FEW PROPERTY TAX PROGRAMS ARE
STATURE TURNS OUT OUR STATUTORY
AND WENT WITH CD TFA.
AND.
THOSE FOR BOTH FOR EASE OF
TAXPAYER OPERATION BECAUSE YOU
DON'T TAXPAYERS DEALING WITH TWO
DEPARTMENTS IF THEY DON'T HAVE
TO.
MAY MORE PROPERLY.
RESULT RESIDE WITH POV. A
SIMILARLY. THERE WERE TWO
PROGRAMS THAT WHEN THAT POV THAT
ARE CONSTITUTIONAL.
ONE THE ALCOHOL EXCISE TAX
PROGRAM AND THE INSURANCE TAX
PROGRAM.
THAT.
pNOW WITH C. D. TFA EXCEPT ON
THOSE ISSUES. SO AS A STOP GAP
MEASURE WHAT WE'VE DONE IS ENTRY
INTO A MEMORANDUM OF
UNDERSTANDING BETWEEN BILLION CD
TFA WHERE WE'RE. SORT OF DOING.
THE WORK.
FOR THE OTHER DEPARTMENTS OF
THIS THE STATUTORY
RESPONSIBILITY. REMAINS WHERE
THE LEGISLATURE PLACED IT BUT WE
ARE DOING THE WORK.
.
FOR. EACH OTHER.
I I KNOW THAT THERE'S BEEN TALK
OF A LEGISLATIVE SOLUTION TO
THAT TOO MAYBE RE ALLOCATE THOSE
ON THROUGH STATUTE TWOS SIMPLE
BY THE PROCESS.
IT'S BEEN A THIS INVOLVES VERY
FEW I THINK THIS BIRD TOTAL.
IT'S A ROUGHLY FIFTY.
PEOPLE ARE SO IT'S NOT A LARGE
NUMBER OUT OF.
A FORTY FIVE HUNDRED SO.
HOW'S THAT PROCESS WORKING.
BECAUSE SO FAR IT'S WORKING OKAY.
YOU KNOW IT'S THE SAME PEOPLE
DOING THE SAME JOBS THAT THEY
WERE DOING BEFORE. EYES SO.
IT IT'S NOT REALLY A CHANGE FOR
THEM.
IT'S JUST A MATTER OF WHERE
THEY REPORT AND.
AND SO FAR IT'S BEEN WORKING
ALRIGHT.
AND WHAT IF SO YOU WE REFERENCE
THE FACT THAT THE MAY BE A PLAN
TO CHANGE THIS WHAT WHAT. WHAT'S
THE STATUS OF THE PLAN I I
HAVEN'T SEEN IT WELL I KNOW. PUT
TOGETHER A LEGISLATIVE PROPOSAL.
AND.
IT WAS FLOATING IN THE GET IT
LOADED ON VOTING IN THE ETHER
YES SOMEWHERE AND IN GOV OFFICER
AT THE GOVERNOR'S OFFICE OR
MAYBE BEYOND AYE I DON'T.
WELL SEPARATE APART FROM THIS
I'D BE VERY INTERESTED IN.
IN SEEING THAT AND WORKING WITH
YOU TO.
TO MAKE.
MORE PERFECT WHAT I'M SURE IS
NOT QUITE PERFECT YET.
PRETTY MUCH.
HAPPY TO DO THAT.
MY NEXT QUESTION HAS TO DO WITH.
THE OPERATIONAL CULTURE RICHARD
RICHARD TWO WORDS THAT CAME UP
FREQUENTLY.
OVER THE PAST YEAR WHEN WE WERE
DEALING WITH THESE VARIOUS
ISSUES HAVING TO DO WITH THE
BOARD AND.
WITH A YOUR NEW.
OPERATION.
HI. HOW HAVE YOU BEEN ABLE TO
DEAL WITH OPERATIONAL CULTURAL
ISSUES
AS YOU'VE TRANSITION EMPLOYEES
FROM THE BOARD OF EQUALIZATION
INTO YOUR DEPARTMENT?
WELL THERE'S A LOT THAT WE'VE
DONE AND THERE'S A LOT MORE WORK
THAT REMAINS.
I'M.
NO THERE ARE SOME ISSUES THERE
AND THERE BEEN SOME PROBLEMS AND
THEY DIDN'T DEVELOP OVERNIGHT
AND
GOING TO BE RESOLVED OVERNIGHT.
I CAN GIVE YOU SOME EXAMPLES OF
THE THINGS THAT WE'VE DONE AND
ONE OF THE ISSUES PARA
PREVIOUSLY WAS THAT. THAT IN THE
FOR EQUALIZATION DISTRICTS.
THE TAX LAWS WERE ADMINISTERED.
DIFFERENTLY.
WHICH.
I'VE.
I.
I DON'T THINK WAS THE INTENT OF
OF THE LAW TO HAVE YOU HAVE A
DIFFERENT TAX OUTCOME IF YOU
WERE IN FRESNO OR IN.
LOS ANGELES.
I MENTIONED BEFORE.
.
SO WE'VE BE. MADE A REAL PUSH TO
OUR. BRING ALL OF THE IT TO
STANDARDIZE ALL OF OUR POLICIES
ACROSS THE.
ARMS STATE.
THAT IS THAT'S ONE WAY AND I
THINK ACTUALLY STAFFS VERY
RECEPTIVE TO THAT AND AND IS
HAPPY TO HAVE. A VERY CLEAR
DELINEATED POLICY THAT THEY CAN
FOLLOW.
BUT WE'VE JUST COMPLETED AND
I'VE.
HIDE EMPLOYEE ENGAGEMENT SURVEY
TO TRY TO IDENTIFY.
CERTAIN WHERE WE'RE DOING THINGS
RIGHT IN WHERE WE'RE NOT BECAUSE
THEY'RE OUR MORALE ISSUES THAT
FARMING WE ACTUALLY THE SEVENTY
NINE PERCENT.
RESPONSE RATE TO THE SURVEY
WHICH IS HUGE FOR THIS TYPE OF
SURVEY I DON'T HAVE THE RESULTS
YET BOTTOM IT JUST CLOSE TO.
ABOUT A WEEK AGO.
BUT.
WE'RE TRYING TO DO.
A LOT OF THINGS TO INCREASE
MORALE IN TERMS OF.
WILL YOU KNOW WE'RE SETTING UP
REGULAR CALLS WITH THE FIELD FOR
THE FIRST TIME. IN A LONG TIME
TO FOR WHATEVER REASON THEY
HADN'T HAPPENED.
I FELT TOWN HALLS THAT TRAVELED
AROUND THE STATE.
WE'VE HAD A PROBLEM WITH
NEPOTISM WHICH HAS BEEN WIDELY
REPORTED.
WE INSTITUTED A STRICT NEW ANTI
NEPOTISM POLICY WHICH WE'RE
ENFORCING AND.
.
CAUSING US TO MAKE SOME
DIFFICULT DECISIONS BUT
DECISIONS THAT NEED TO BE MADE.
IT'S THEIR LOT OF THINGS THAT
WE'RE. THAT WE'RE DOING AND AND
I THINK IT'S GOING TO BE A
PROCESS TO.
TO GET TO A COMPLETELY.
PARA.
HEALTHY ORGANIZATION BUT WE'RE
WE'RE MAKING STRIDES.
THANK YOU I.
.
BY THE WAY WILL THE LEGISLATURE
HAVE ACCESS TO THE RESULTS OF
YOUR CLIMATE ASSESSMENT
ABSOLUTELY.
I LIKE TO ASK SOME QUESTIONS
ABOUT YOU SEE ROWS COMPUTER
SYSTEM BUT I THINK I'LL DEFER
AND. NOT TAKE UP ALL THE TIME
AND SEE IF THERE'S TIME AT THE
END ON THAT AND AND MOVED TO
CANNABIS.
A FAVORITE SUBJECT AROUND HERE.
.
CAN YOU TELL US WHAT THE STATUS
IS OF THE DEPARTMENTS COLLECTION
EFFORTS HOW YOU COLLECT THE CASH
WHICH SHOULD DO WITH IT.
SURE AND WHAT ISSUES YOU SEE NOW
AND IN THE FUTURE.
WELL THERE REALLY.
I'D SEPARATE ARE CANNABIS ISSUES
INTO SORT OF TWO BUCKETS ARM ONE
OR JUST THE POLICY ISSUES YOU
KNOW THE CANVAS TAXATION.
IS RELATIVELY COMPLICATED THEIR
THREE TAXES THAT WE ADMINISTER
AROUND CANNABIS THERE'S THE BOMB
CULTIVATION TAX.
THE EXCISE TAX AND THEN THERE'S
THE SALES AND USE TAX WHICH IS
ALSO APPLICABLE TO CANNABIS
SALES.
.
AND THEN THE SECOND BUCKET IS
SORT OF HOW WE ACTUALLY GO ABOUT
COLLECTING THOSE TAXES AND WE'VE
YOU KNOW BOTH OF THEM ARE
COMPLICATED.
LET ME START WITH THE SECOND
ACTUALLY IN.
THE AROUND THE CASH ACCEPTANCE
WHICH HAS BEEN A BIG ISSUE. A
SINCE I GOT THERE.
FORTUNATELY.
BUT THE MANY TAXPAYERS SEEM TO
HAVE FOUND SOME WAY INTO THE
BANKING SYSTEM SO SO WE'RE NOT
RECEIVING HUNDRED PERCENT OF OF
TAX.
AND A PAYMENTS IN CASH LET'S
THAT'S A GOOD THING.
WE DON'T YET KNOW.
.
THE COMPLETE SCALE OF.
THE ISSUE BECAUSE THE FIRST OUR
PAYMENT DUE UNDER ADULT USE
CANNABIS
IS IS DO AT THE END OF APRIL THE.
FIRST QUARTERLY PAYMENTS FOR
TWENTY EIGHTEEN IS TO APRIL
THIRTIETH.
AT THAT POINT WILL HAVE A MUCH
BETTER IDEA OF REVENUE. OF THE
NUMBER OF TAXPAYERS WILL HAVE.
AND THE NUMBER OF CASH FARES
WILL HAVE IN THE AMOUNT OF CASH
THAT WILL BRING IN BUT.
REGARDLESS IT'S ALREADY A BIG
ISSUE WE. ARE IN JANUARY WE TOOK
AND ALMOST FIVE MILLION DOLLARS
IN CASH.
I AM NOT WAS UNDER THE OLD WE
HAVE THAT WAS PRE. ADULT USE.
.
WE HAVE TRIED WE'VE LOOKED FOR
ALL SORTS OF SOLUTIONS LONG WITH
ON THE BALLOT THE BUSINESS
CONSUMER SERVICES AND HOUSING
AGENCY AS WELL AS WITH
GOVERNMENT OPERATIONS AND OTHERS.
AND THAT OFFICES STATE
TREASURER WE'VE ALL BEEN LOOKING
FOR ANY SORT OF SOLUTION TO KEEP
THAT VOLUME OF CASH FROM COMING
INTO OUR OFFICES BECAUSE IT IS A
REAL SECURITY CONCERN. WE HAVE
YET TO FIND.
.
A WORKABLE SOLUTION SO WHAT WE
HAVE DONE IN THE MEANTIME WE
HAVE TEN LOCATIONS AROUND THE
STATE. WILL SOON HAVE ELEVEN.
.
WHEN WE OPEN NEXT MONTH THE
LOCATION AND HUMBLED CAO.
WHERE WE HAVE ATTEMPTED TO
HARDEN FACILITIES?
WE'VE BEEN WORKING WITH CH P.
TO PROVIDE ON SITE ARMED LAW
ENFORCEMENT PROTECTION ANYTIME
WORKS AT
CASH.
WE HAVE ARMORED CAR SERVICES
WE'VE GOT YOU KNOW WE WERE DOING
WHATEVER WE CAN. AND THAT IS OUR.
.
CURRENT METHOD FOR ACCEPTING
THOSE PARA REVENUES.
AND THEN TO THE THE TO THE
FORMER TO NOT KNOW MORE PARKING
LOT EXCHANGES NEWTON NOW. THERE
WAS A.
DID HAVE A.
.
WHO?
THE MORE INFORMAL AGREEMENT
LISTEN FINANCIAL INSTITUTIONS
BUT ONCE THE BETWEEN WHAT'S THE
CALL MEMO WAS REVOKED AND ONCE
IT.
GOT SOME SUNLIGHT IT DID NOT.
HOME WAS STAND THE SCRUTINY AND
SO THAT HAS GONE AWAY.
WITH RESPECT TO.
OUTREACH
BOTH IN THE CANNABIS SURREY
FRANKLY AND IN OTHER ASPECTS OF
THE TAX PROGRAMS THAT YOU'RE
INVOLVED WITH.
AS YOU MAY RECALL THE BOARD OF
EQUALIZATION.
A CERTAINLY REPORTED BUT ALSO
APPEARED TO ENGAGE IN A FAIRLY
SIGNIFICANT AMOUNT. OF TAXPAYER
A OUT REACH THROUGH THE VARIOUS
OFFICES THAT THE BOARD OPERATED.
HOW DOES YOUR HOW IS YOUR
DEPARTMENT HANDLING OUT REACH
NOW AND HOW DO YOU PROPOSE TO
HANDLE IT IN THE FUTURE WELL
THAT IS ONE THING THAT I AM
COMMITTED TO A YOU KNOW I?
JOIN THE STATE.
FROM DAY U. S. SMALL BUSINESS
ADMINISTRATION AND I WANT TO
MAKE SURE THAT WE DON'T BECOME
SORT OF A FACELESS BUREAUCRACY
THAT WE ACTUALLY HAVE PEOPLE
THERE WHO CAN HELP SMALL
BUSINESSES.
WHO WANT TO COMPLY WITH THE LAW
UNDERSTAND LAWSUIT THEY CAN'T DO
THAT?
ITEM. WE HAVE ACTUALLY. RAMPED
UP OUR OUTREACH EFFORTS
ACROSS THE STATE I THINK WE'LL
HAVE I THINK THE LATEST NUMBERS
ARE SO WE MIGHT HAVE FOUR TIMES
AS MANY CLASSES.
THIS YEAR.
AS WERE HELD. PREVIOUSLY. A
AROUND THE STATE YOU KNOW EACH
OF. THE.
OUTREACH EVENTS UNDER THE BOARD
COST QUITE A BIT OF MONEY
BECAUSE THEY WERE. PRINTING
CHARGES AND MAILINGS AND AND
THEY WERE VERY.
.
INVOLVED.
AFFAIRS.
I NOW WE'RE BASICALLY DOING THEM
FOR FREE USING STAFF AND WE'RE
USING THE INTERNET AND AND MEDIA
TO.
HIGHLIGHT THEM INTO DRAW PEOPLE
TO THOSE.
AND SO WE'RE DOING CLASSES
INCLUDING ON NIGHTS AND WEEKENDS
SO WE CAN REACH PEOPLE WHO.
.
HAVE TO WORK SINCE HE'S A
BUSINESS OWNERS. AND.
WE'RE RUNNING CLASSES AND
HAVING GREAT TURNOUT SO FAR
AROUND THE STATE'S SO THAT'S.
AND WE ALSO RUN A CALL CENTER
WHERE WE TRY AND KEEP OUR WAIT
TIMES UNDER TWO MINUTES.
AND WE'RE MOVING INTO LIVE CHAT
IS WELL KNOWN.
YOU KNOW I WANNA MAKE SURE THAT
WE'RE. DOING AS MUCH OUT WHICH
AS WE POSSIBLY CAN.
I SHOULD KNOW THIS AND I DON'T
RECALL DO YOU ANTICIPATE DOING
OF. A PERIODIC PERHAPS IN THE
ANNUAL REPORT OF YOUR ACTIVITIES
WHICH WOULD INCLUDE STATISTICS
ON OUT REACH IN THE LIKE YES.
THANK YOU VERY MUCH FOR YOUR
RESPONSES CONGRATULATIONS AGAIN
THANK YOU MADAM CHAIR SENATOR.
VERY MUCH MISTER CANNELLA.
HE NEVER TEMBA OF SENATE ROTH
* LA MY QUESTION AWARD
ELABORATE MORE ON THAT. CANNABIS
WHICH YOU DID BUT SINCE.
HE DID NOT A TALK ABOUT THE I.
T. SYSTEM WE'VE HAD SUCH A
PROVEN TRACK RECORD WHEN IT
COMES IT SYSTEMS IN. CALIFORNIA
CAN YOU UPDATE US ON WHERE
YOU'RE WHERE THE CROPS SYSTEM IS
LESS SYSTEM ALSO.
YES I SHOULD. BE FOR THAT.
SO OUR CROSSES OUR NEW UPGRADED
IT SYSTEM WHICH WILL. INVOLVE
BOTH THE TAXPAYER.
.
INTERFACE AS WELL AS OUR OWN
INTERNAL OPERATIONS ALONG WITH.
MUCH OF OUR LOCAL REVENUE
ACCOUNTING.
ISSUES WHERE WE'VE HAD SOME
CHALLENGES IN THE PAST AS WELL.
OUR BIG ROLLOUT WHICH INCLUDES
THE SALES AND USE TAX COMPONENT
WHICH IS MORE THAN FIFTY BILLION
UP TO SIXTY FIVE BILLION DOLLARS
THAT CD TFA COLLECTS EACH YEAR.
SO THAT ROLLOUT IS SCHEDULED FOR
MAY SEVENTH.
OF THIS YEAR SO NOW I JUST OVER
A MONTH AWAY. YOU'RE ON TRACK TO
ROLL OUT ON MAY SEVENTH AND
WE'RE ON BUDGET CURRENTLY THIS
IS THAT NOW THIS IS A CUSTOMIZED
OFF THE SHELF SOLUTIONS SO IT'S
NOT.
YOU KNOW WASN'T DESIGNED A
WASN'T CUSTOM BUILT IT'S NOT
DESIGNED FROM SCRATCH.
BUT TWENTY FOUR TWENTY FIVE
OTHER STATES USE THIS SAME.
SYSTEM SO WE'VE GOT A PRETTY
HIGH DEGREE OF CONFIDENCE THAT
THAT SHOULD WORK WHEN WE FLIPPED
A SWITCH ON MAY SEVENTH.
.
WE ARE CURRENTLY DOING AND TO
AND TESTING AS WELL AS DOING A
TRAINING AROUND THE STATE.
IN PERSON TRAINING WITH ALL OF
OUR STAFFS OF THE DAY.
A KNOW HOW TO OPERATE THE NEW
SYSTEM ALTHOUGH THE NEW SYSTEM
IS MUCH MORE INTUITIVE THE OLD
ONE IF YOU.
EVER REMEMBER THAT THE.
TRAVEL AGENTS IN THE OLD DAYS
WHEN YOU'D ASK FOR TICKET MAY
TYPE AND SOMETHING'S ON A
KEYBOARD YOU CAN RECOGNIZE AND.
COULD UNDERSTAND WHAT THEY WERE
OING A THAT'S SORT OF WHAT OUR
CURRENT SYSTEMS LIKE IN THE NEW
ONE IS A SORT OF WINDOWS BASS.
BOTTOM YOU KNOW EASY NAVIGATE
SYSTEM.
OKAY. US WE TALKED ABOUT E.
COMMERCE A LITTLE BEEN.
IT'S ABOUT A TWO BILLION DOLLARS
A YEAR ONE POINT EIGHT BILLION.
THAT WE DON'T COLLECT THAT WE
SHOULD RIGHTFULLY COLLECT
BECAUSE THEY'RE SPOKE PEOPLE
SPECIFIC TAXES AS. I MENTIONED I
KEEP NOTES OF EVERYTHING I BY AN
INTERNET AND SELF REPORT THE IN
THE YEAR SO NOTHING LESS FROM
HIS TAKE YOU. SO CAN YOU
WHAT IS GOING ON AND AND HOW DO
WE SOLVE THE PROBLEM.
WELL.
IT IS A HUGE PROBLEM.
AS WE'RE APPROACHING I THINK
ALMOST TWELVE PERCENT OF RETAIL
SALES ARE NOW ONLINE THE
PROBLEMS JUST.
GETTING BIGGER UNLESS WE FIND
RESOLUTION. LIMITED. DOES TALK
ABOUT TWO THINGS ONE THE SUPREME
COURT WILL BE HEARING.
IN THE MIDDLE OF THIS MONTH A
CASE WHICH.
MANY PEOPLE ARE EXPECTING WILL
OVERTURN.
LONG HEALTH PRECEDENT CALLED
QUILT DECISION.
WHICH BASICALLY.
ONLY ALLOWED THE STATE TO
REQUIRE OUT OF STATE RETAILERS
TO COLLECT AND REMIT USE TAX.
TO THEIR SALES HERE IF THEY HAD
A PHYSICAL PRESENCE AND IN THE
STATE.
THAT'S
YOU KNOW WAS.
DATES TO AN ERA OF CATALOG SALES
WHEN THEY WEREN'T NEARLY AS
SIGNIFICANT I THINK A LOT OF
PEOPLE EXPECTED SUPREME COURT
WILL CHANGE THAT. AND THE
LEGISLATURE HAS ALREADY PASSED
INTO STATUTE WHAT'S KNOWN AS A
LONG ARM PROVISION THAT
BASICALLY SAYS THAT.
THE STATE'S ABILITY TO TAX.
EXTENDS AS FAR AS THE COMMERCE
CLAUSE OF THE CONSTITUTION
CONSTITUTIONAL LOUSE OF THE
SPRINKLER CHANGES.
THE LAW WE CAN IMMEDIATELY BEGIN
FORCING IT NOW THERE MAY BE SOME.
LEGISLATION NEEDED TO SORT
PERFECT THAT PROCESS IN THERE
WILL CERTAINLY BE SOME
REGULATION.
SURE IS NEEDED.
SO THAT'S ONE THING THAT SORT OF
OVER THE LONGER TERM OVER THE
SHORTER TERM.
THERE IS A LOT THAT WE CAN AND
NEED TO BE DOING. RIGHT NOW AND
AND.
FRANKLY I WAS A LITTLE SURPRISED
THAT MORE WASN'T DONE.
PREVIOUSLY GIVEN.
THIS I'M.
ARE.
YOU KNOW I'M I'M NOT AN INTERNET
EXPERTISE DOESN'T TAKE INTERNET
EXPERT TO SEE THAT HE COMMERCE
SALES ARE. INCREASING RAPIDLY IN
THAT WE'RE LOSING REVENUE AS A
STATE.
.
ANYBODY WHO.
CURRENTLY OUR.
WAREHOUSES GOODS IN THE STATE.
HAS A PHYSICAL PRESENCE HERE AND.
OUGHT TO BE COLLECTING AND
REMITTING TAXES THIS.
ON SALES CALIFORNIA THAT'S NOT
HAPPENING AND YOU CAN. GO ON TO.
ANY NUMBER OF NAME THE WEBSITES
BUT YOU'RE GOING TO ANY NUMBER
OF WEBSITES AND GET A DELIVERY
TODAY.
WHICH INDICATES TO ME THAT THE
GOOD IS.
HERE SOMEWHERE IN THE SACRAMENTO
AREA IN THE STATE OF CALIFORNIA.
AND PAY NO SALES TAX.
THAT SHOULDN'T BE HAPPENING AND
SO WE ARE.
.
WORKING AGGRESSIVELY TO IDENTIFY.
HAS THOSE RETAILERS AND GET
THEM PERMITTED AND BRING THEM
INTO COMPLIANCE WITH CALIFORNIA
LAW AND WE GOT IT TEAM WORKING
ON THE.
CURRENTLY. SO THE OUT OF STATE
ONCE PUT A LITTLE HARDER TO. TO
CAPTURE. ONE OF THE ONE POINT
EIGHT BILLION DOLLARS.
EXCUSE ME.
WELL WHAT PERCENTAGE OF THAT
WOULD BE A SHIP'S NOT FOLLOWING
THROUGH THAT THEY CLEARLY HAVE A
PRESENCE IN SOME FASHION IN
CALIFORNIA. AND THEY'RE NOT WITH
ELECTING OBTAIN THIS I DON'T
THINK THAT I MEAN THERE ARE
CERTAINLY SOME IN STATE.
RETAILERS WHO WORDS OPERATE ONLY
ONLINE WHO ARE PROBABLY NOT
COMPLYING OR PEOPLE WHO MIGHT
HAVE AN OFFICE HERE I'M SURE
THERE ARE THOSE FOLKS.
BUT I THINK WE'RE DEALING
LARGELY WITHOUT A STATE FOLKS
WHO DO HAVE PRESENCE HERE EITHER
THROUGH HAVING THEIR MERCHANDISE
HERE THAT'S ON REFERRING
WAREHOUSE YEAH WELL I THINK EACH
OF THAT THE SAME A DELIVERY
CLEARLY THEY'RE DOING SOMETHING
THAT CALIFORNIA WELL IF YOU LOOK
AT I MEAN.
OUR ESTIMATES ARE I MEAN IT'S
HUNDREDS OF MILLIONS OF DOLLARS
A YEAR FLOSS TAX REVENUE JUST ON
THAT.
WE WOULD APPRECIATE IF YOU WOULD
CLICK THAT SO I I'M DOING MY
BEST. GOOD. WELL AT A AS WE WE
TALKED EARLIER AND I'M VERY
IMPRESSED WITH YOU HARVARD LAW
SCHOOL SO CLEARLY HE'S QUALIFIED
FOR THIS HOUSE ADMITTED BEFORE
THEY MADE IT DIFFICULT TO LITTLE
HEART BE OKAY RIGHT RIGHT. BUT
THE FACT THAT YOU HAVE TWINS
GOES ALONG WITH ME AS WELL SO
LOOK FOR SUPPORTING YOU'D THINK
YOU APPRECIATE YOUR KIND REMARKS.
AT YOUR DOOR TONIGHT TO COLLECT.
WELL THIS TWIN IS GOING TO TURN
IT OVER TO MISTER BERRYHILL.
WELCOME TO THE OF MY QUESTIONS
BUT AS SPLIT BOTH MISTER ROTH
AND.
CANNELLA SO GOD KNOWS.
THANK YOU VERY MUCH MR MINING.
THANK YOU MADAM CHAIRMAN AS HEAD
A COUPLE FOLLOW UP QUESTIONS BUT.
CAN WANNA CONGRATULATE YOU ON
THE APPOINTMENT AND THANK YOU
FOR YOUR SERVICE AND YOUR.
WILLINGNESS TO CONTINUE SERVING
THE STATE OF CALIFORNIA.
AND JUST FOR THE RECORD.
WAS SENATOR CANNELLA MY WIFE AN
I DO SELF REPORTER ARE INTERNET
PURCHASES.
THERE IS A LINE ON THE TECH
CALIFORNIA TAX ATTORNEY NOW YOU
NEED TO PUT IN A NUMBER IT'S NO
LONGER WILL YOU CAN'T JUST LEAVE
IT BLANK ANYMORE SO.
THANK YOU. TOM NTSA ACT TO THE
CAPTURE RELATED TO.
CAPTURE OF THE.
I'M CAPTURED INTERNET HOME SALES
HAPPENING IN CALIFORNIA WHERE
THERE IS.
THE WAREHOUSE SIR THE
MERCHANDISE NAM.
COULD YOU ELABORATE A LITTLE BIT
MORE QUITE.
THE DEPARTMENT IS DOING TO
INCREASE THE RATE OF.
NOT CAPTURING THAT UNPAID TAX
WELLS SAYS SENSA I'VE BEEN THERE
WE HAVE IDENTIFIED AND CONTACTED.
MORE THAN TWENTY FIVE HUNDRED.
RETAILERS OUT OF STATE THAT WE%
BELIEVE ARE.
.
SHOULD BE PERMITTED BY CDT FAA.
AND WE'RE WORKING WITH THEM
WE'RE NOT GETTING QUITE THE AS
YOU CAN IMAGINE THE PEOPLE
AREN'T INCREDIBLY HAPPY TO BE
CONTACTED BY THE. TAX AUTHORITY
AND TOLD THE TALE TAXES FOR THE.
UP TO THE LAST EIGHT YEARS.
ON THEIR SALES AND AND ONE
IMPORTANT THING I SHOULD NOTE
THAT. IF IF YOU HAVE NEXUS TO
THE STATE.
ALL OF YOUR SALES TO THE STATE
AREN'T.
ARE SUBJECT TO TAX NOT WILL
THEY'RE ALL SUBJECT TO TAX
ANYWAYS AT SUNSET BUT YOU'RE
REQUIRED TO REMIT.
TAXES FOR ALL OF YOUR SALES EVEN.
THOSE THAT WERE NOT WAREHOUSED
IN STATE SO IT'S IT CAN BE A BIG.
BUILDS COME DO SO PEOPLE ARE
NOT INCREDIBLY THRILLED WITH
THAT BUT WE'RE. WORKING THROUGH
IT AND WE'RE ALSO I'M SORRY TO
INTERRUPT BUT JUST ON THAT.
WATCH YOUR ENFORCEMENT POWER HOW
DO YOU DO YOU HAVE.
LAWYERS WHO WILL PURSUE THAT IN
COURT HAD WELL SO WE HAVE A.
FOR OUT OF STATE WE COLOR OUT OF
STATE OFFICES ONE IS HERE IN
SACRAMENTO SO IT'S A LITTLE
CONFUSING BUT WE ALSO HAVE
OFFICES IN NEW YORK CHICAGO IN
HOUSTON.
AND WE. ARE OUR POWER IS
BASICALLY UP POWER TO AUDIT AND
TO BILL AND SO PEOPLE ARE NOT.
.
A COOPERATIVE WITH OUR AUDITS WE
CAN JUST BILL PEOPLE.
FOR TAXES THAT WE ESTIMATE ARE
DUE.
AND THEN THEY HAVE TO SHOW US
WHY THE TAXES ARE NOT TO.
BECAUSE OF THE.
A PENDING SUPREME COURT CASE WE
HAVE NOT BEEN QUITE AS
AGGRESSIVE AS THAT AS YET.
BECAUSE WE'RE PROBABLY LOOKING
AT JUST JUNE WHEN THE A WE
EXPECT THE COURT DECISION TO
COME DOWN.
SO WE HAVEN'T YET.
USED THE FULL SCOPE OF OUR
EXISTING POWER BUT IT IS MORE
DIFFICULT OUT OF SATE ALTHOUGH.
BY OUT OF STATE COURTS BAM
SHOULD ENFORCE OUR HOME.
.
POWERS.
IN ASSUMING THE COURT DECISION.
COMES DOWN IS EXPECTED.
IT WOULD EMPOWER THE ABILITY TO.
A MORE AGGRESSIVELY CLICKED THAT
OUTSTANDING.
HE TEXTED YES I EXPECT WELL I
GOT EXPECTED WOULD.
IN THE BROADER UNIVERSAL.
DEPENDING ON WHAT TIME WE HAVE
NO IDEA WHAT THE SUPREME COURT
WILL SAY BUT THEY COULD.
TAKE AWAY THE PHYSICAL PRESENCE
TEST SO WOULD IT COULD JUST BE
IF YOU SELL OVER CERTAIN DOLLAR
THRESHOLD INTO STATE FOR EXAMPLE
THIS WHAT SOUTH DAKOTA IS
CLAIMING IF YOU SELL OVER
CERTAIN.
WHICH IS THAT THOSE STATE
INVOLVEMENT SUPREME COURT
LITIGATION THE CELL OVER EXTOL
ORDERS INTO THE STATE THEN YOU
ARE ROOM. MAY BE REQUIRED TO.
I COLLECT AND REMIT TO USE TAXES.
CNN NO IT HASN'T BEEN DECIDED
THAT THAT WOULD BE WITH OR
WITHOUT A PHYSICAL EXPRESSIONS
OF THE SATELLITE WHICH WITH THE
PHYSICAL PRESENCE WE'VE ALREADY
GOT THE. RAIN AND AND I'M YOU
KNOW WE WE NEED TO BE DOING MORE
ON THAT THE OTHER THING THAT
WE'RE DOING IS WORKING WITH.
.
WORKING WITH MIGHT BE TOO STRONG
A TERM OR MAKE IT SOUND
FRIENDLIER THAN IT IS BUT WE'RE
I'M WORKING.
TO BUY GET THE INFORMATION FROM.
FULFILMENT CENTERS WHERE HOUSES
OTHER RETAILERS. OF THOSE THIRD
PARTY SELLERS SO THAT WE CAN YOU
KNOW IT'S A MUCH EASIER.
TO GET THE INFORMATION THAT WAY
THAN TO TRY TO FIND.
ALRIGHT TRYING FIND THEM
INDIVIDUALLY WHEREVER THEY ARE
AROUND THE WORLD.
AND THAT'S WHERE THEY ARE
PARTNERING WITH.
IF THEY MAYBE NUZZLING THROUGH A
RIFLEMAN SERVICE.
RIGHT THANK YOU MY FINAL AREA
YOU TOUCH SOMEONE THE OUTREACH
SERVICES AND I THINK YOU'VE. IN
OUR CONVERSATION HAVE A STRONG
COMMITMENT TO.
ABSENT BEING USER FRIENDLY SMALL
BUSINESSES OTHER ENTITIES
INDIVIDUALS.
YEAR LANGUAGE CAPACITY.
I THINK IT SOUNDED PRETTY HIGH
AND SPANISH.
HOW ABOUT OTHER LANGUAGES HAD
TO NONE?
ENGLISHMAN SPANISH SPEAKERS
ACCESS SERVICES FROM YOUR OFFICE.
WELL WE.
HAVE.
ALL THE TIME SO THAT OUR MONEY.
COUPLED BUCKETS HERE IN OUR CALL
CENTER WE ALWAYS HAVE SPANISH
AND ENGLISH SPEAKERS AVAILABLE
FOR THOSE WHO WANT DIFFERENT
NEED ASSISTANCE IN OTHER
LANGUAGES. WE DO HAVE.
.
WE ARE ABLE TO CALL HIM BACK
WITH SERVICES.
EITHER THROUGH CTT FAA
EMPLOYEES WHO ARE FLUENT IN
THOSE LANGUAGES.
OR WE ALSO HAVE A TRANSLATION
CONTRACT ON THAT WE CAN USE WHEN
NEEDED. IN TERMS OF OUR COURSES.
WE DO OFFER THEM.
IN SOME OTHER LANGUAGES OTHER
PLACE RUN STATE SPANISH MOST
QUICKLY BUT ALSO IN SOME ASIAN
LANGUAGES AND AREAS WHERE WE
HAVE HEAVY ASIAN ENTREPRENEURIAL.
BUSINESS OWNER CONCENTRATIONS.
BUT I.
BELIEVE THAT WE COULD BE DOING
MORE AS I MENTIONED YESTERDAY.
ONE OF THE THINGS THAT TROUBLES
ME IN THAT WE'RE. RESOLVING
CURRENTLY IS THAT WE DON'T OFFER
OUR FORMS INCLUDING OUR TAX
RETURN FORM OR OUR PERMIT
APPLICATION IN ANY LANGUAGE
OTHER THAN ENGLISH.
THESE ARE NOT LONG FORMS THERE'S
NO AS FAR AS I'M CONCERNED
THERE'S NO.
USE NOT TO OFFER THEM IN A WAY
THAT. PEOPLE CANNOT UNDERSTAND.
AND IN FACT IT'S A DRAIN ON
STATE RESOURCES BECAUSE A LOT OF
OUR PEOPLE WHO ARE FLUENT IN
THOSE LANGUAGES SPEND A LOT OF
THEIR TIME.
JUST HELPING PEOPLE FILL OUT
FORMS THAT THEY COULD FILL OUT
THEMSELVES. IF WE OFFERED THEM
IN OTHER LANGUAGES SO I'M
COMMITTED TO DOING THAT HIDDEN
SO. SINCE IT'S ON YOUR RADAR AND
IS COMMITTED TO PURSUING THAT.
GREAT WELL AGAIN I WANNA ADD MY
CONGRATULATIONS AND WELCOME YOUR
FAMILY THAT ARE HERE TODAY IN.
THANKS SO MUCH SERVICES THANK
YOU THANK YOU MADAM CHAIR.
YOU MISTER MONNING AND.
NOW.
I WILL SEE IF WE HAVE ANYONE
HERE IN SUPPORT OF OF OR
OPPOSITION.
YEAH I ANY MEMBERS OF THE PUBLIC
WHO ARE HERE AND WISH TO SPEAK
IN SUPPORT. OF MR MADURO'S
PLEASE COME FORWARD.
MADAM CHAIR MEMBERS OF THE
COMMITTEE MARK RAN.
PROPANE KAYLEE PERSONALLY
REPRESENTING NUMBER
BY.
TAXI OVER HERE TO SUPPORT THE
CONSUMMATION OF MR MAJORIS.
I. WHEN HE WAS APPOINTED TO THIS
POSITION IT WAS AT A TIME OF
GREAT CHANGE N THE CALIFORNIA
TAX SYSTEM.
I END UP OR.
DESPITE THESE DIFFICULTIES
MISTER MAJORIS HAS REPEATEDLY.
MADE HIMSELF AVAILABLE TO OUR
CLIENTS WHO ARE SEEKING LIKE HIM.
TO NAVIGATE THE STATE'S NEW TAX
SYSTEM.
AND WE WILL TRUST HILL CONTINUE
TO DO SO. AND AT THE OUTSET OUR
CLIENTS MADE A COMMITMENT TO MR
MEDORA SANTA THE ADMINISTRATION
TO HELP MAKE THIS TRANSITION AS
SMOOTH AS POSSIBLE. AND I'M
HAPPY TO SAY IT IS OUR
EXPERIENCE THAT MR MAJORIS MADE
THE SAME COMMITMENT AND WE URGE
YOUR CONFIRMATION THANK YOU.
YOU VERY MUCH.
ANYONE ELSE IN SUPPORT.
ANYONE IN OPPOSITION.
OTHER COMMENTS OKAY I'M HAPPY TO
ENTERTAIN A MOTION.
SO MOVED BY MISTER ROSS PLEASE
CALL THE ROLL SENATORS BERRYHILL.
BERRYHILL AYE MINING. MINING AYE
ROTH. ROTH AYE CANNELLA BY
CANNELLA AYE ATKINS ATKINS AYE
REGULATIONS AND THANK YOU YOUR
AYE FAMILY YOUR PARENTS FOR.
THEIR.
SO WE HAVE.
COMPLETED THE AGENDA FOR TODAY
WE WILL MOVE INTO EXECUTIVE
SESSION.
SO WE'LL TAKE A MINUTE AS.
MEMBERS OF THE PUBLIC AT OUR
APPOINTEES AND.
FAMILY MEMBERS ARE ABLE TO EXIT
AND THEN WE WILL.
RESUME EXECUTIVE SESSION