BANKING AND FINANCE COMMITTEE.
HOW WE ARE GOING TO START AS A
SUBCOMMITTEE DUE TO A LACK OF A
QUORUM AND THAT WE HAVE A FULL
AGENDA TODAY WE HAVE? TEN ITEMS
TO BE HURT WELL EIGHT AYE IM'S
ME ARE TWO THAT ARE GONNA BE ON
CONSENT.
SP TEN.
FIVE FIVE BY A SOONER NEWMAN
AND.
S. B. THIRTEEN SIXTY ONE.
BY SENATOR PREFERABLE FOR THOSE
ITEMS WILL BE ON CONSENT.
WE HAVE AUTHOR HERE AND I
APPRECIATE TO THE GENERAL BEING
HERE ON TIME AND.
SO WE'RE GOING TO START WOULD
AYE ITEM FIVE S. B. TEN EIGHTY
SEVEN.
BY SENATOR ROTH'S WHENEVER
YOU'RE WHERE THE SENATOR YOU MAY
BEGIN.
THANK YOU A MEASURE OF KALINGA I
WANT TO THANK YOU AND THE
COMMITTEE FOR.
A SIGNIFICANT WORK THAT'S BEEN
DONE ON THIS ISSUE THIS OF THIS
BILL SENATE BILL TEN NINETY
SEVEN MAKE SEVERAL.
FRANKLY VERY IMPORTANT CLEANUPS
CHANGES TO THE PACE PROGRAM I'M
GONNA HIGHLIGHT THREE OF THEM.
VERY BRIEFLY FOR YOU.
FIRST THE BILL REQUIRES
UNDERWRITING EARLY ENOUGH IN THE
PROCESS IN THIS PEACE PROCESS TO
ENSURE THAT NO HOMEOWNER
OBLIGATES HIMSELF OR HERSELF.
WHEN HOME IMPROVEMENT CONTRACTOR
FOR LEARNING EXACTLY HOW MUCH
PACE FINANCING.
OF THE INDIVIDUAL.
HOMEOWNER WILL QUALIFY FOR
SECOND THE BILL INSURERS SOME
TRANSPARENCY REGARDING
CORRECTIVE ACTIONS.
THAT IN A BIT OF BUSINESS
OVERSIGHT DIRECTS.
SOLICITORS AND PAY SILISTRA
AGENTS TO TAKING GIVES THE
PUBLIC.
OTHER TOOLS THAT THEY NEED TO
PROTECT THEMSELVES FROM
INDIVIDUALS WHO HAVE BEEN SO
IDENTIFIED.
AND THE BILL ALSO CREATES A WAY
FOR THE PUBLIC TO EASILY LOOK UP
THE NAME OF THE HOME IMPROVEMENT
CONTRACTOR. MEETING WITH THEM
ABOUT IS TO MAKE SURE THAT THE
PERSON IS.
APPROPRIATELY AND LEGALLY
ALLOWED TO SOLICIT FOR. A PIECE
FINANCING AND FINALLY THIRD THE
BILL MAKES IT VERY CLEAR THAT
PROGRAM ADMINISTRATORS WHO WILL
BE COLLECTING ALL KINDS OF AND
SORTS AND MANNERS OF NONPUBLIC
PERSONAL INFORMATION OR AT LEAST
POTENTIALLY DOING SO. FROM
HOMEOWNERS IN CONNECTION WITH
THE UNDERWRITING THAT WILL BE
DONE PURSUANT TO THIS PROGRAM
THAT THOSE INDIVIDUALS HAVE A
DUTY TO SAFEGUARD THAT NON
PUBLIC INFORMATION.
AND THE BILL GIVES THE
DEPARTMENT OF BUSINESS OVERSIGHT
THE ABILITY TO ISSUE SANCTIONS
WHEN. THERE'S A FAILURE IN THAT
REGARD.
I BELIEVE I HAVE WITH ME TODAY
IN THE CAN MORE FROM THE
CALIFORNIA NEWS.
PAPER PUBLISHERS ASSOCIATION
COURTNEY JENSEN WITH CALIFORNIA
CREDIT UNION LEAGUE AND PERHAPS
A REPRESENTATIVE OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION.
TO TESTIFY IN SUPPORT.
I.
TIME WE'RE GONNA HAVE OUR TWO
WITNESSES JOHN IF YOU CAN.
HAVE YOUR COMMENTS ABOUT.
THREE MINUTES WILL BE FINE THANK
YOU WHENEVER YOU'RE READY.
THANK YOU MISTER CHAIR AND
SENATORS NIKKI MORE WITH THE
CALIFORNIA NEWS PUBLISHERS
ASSOCIATION HERE IN SUPPORT OF
THE BILL. WOULD LIKE TO THANK
THE SENATOR FOR CARRYING THIS
MEASURE AND FOR FOLLOWING
THROUGH WITH THIS COMMITTEES
PROMISE.
.
TO CORRECT
THE.
.
PROBLEMATIC LANGUAGE FROM LAST
YEAR'S BILL TWELVE EIGHTY FOUR.
AND.
ALL JUST SIMPLY SAY THAT
TRANSPARENCY IS A ALWAYS A GOOD
THING AND.
INSURING TRANSPARENCY WITH
RESPECT TO UNLICENSED PAY
SOLICITORS IN AGENTS WELL BRING
INTEGRITY TO THE SYSTEM AND
ENSURE THAT THE PUBLIC HAS
ENOUGH INFORMATION TO KNOW
WHETHER. SOMEONE IN THEIR
COMMUNITY IS OPERATING
IMPROPERLY.
AND SO BECAUSE IT PROTECTS THE
INTEGRITY OF THE PROGRAM AS A
WHOLE WE THINK THAT.
EVEN THE PLACE PAY SOLICITORS
AND AGENTS SHOULD SUPPORT THIS
BILL AND WE WOULD URGE MY VOTE.
MISTER CHAIRMAN NAME IS TED
MERMAN ON THE DIRECTOR OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION AND ON BEHALF OF THE
CLIENTS AND COMMUNITIES WE
REPRESENT.
I'M HERE IT IS OFFER CLICKS
SUPPORT OF. A SENATE BILL TEN
EIGHTY SEVEN WE FULLY SUPPORT
THE LETTER SUBMITTED BY THE
CALIFORNIA CREDIT UNION LEAGUE.
WHICH WE JOINED A BUT I'D LIKE
TO OFFER BRIEFLY JUST THREE
ADDITIONAL THOUGHTS RELATED TO
ENHANCING CONSUMER PROTECTION
SOME PARTICULAR.
AB TWELVE EIGHTY FOUR LAST YEAR
INCLUDED A REQUIREMENT THAT
PROGRAM ADMINISTRATORS MAKE
REASONABLE GOOD FAITH
DETERMINATIONS OF BORROWERS
ABILITY TO PAY. THE ANNUAL PACE
PAYMENT OBLIGATIONS HOWEVER.
DE PROVISIONS OF AB TWELVE
EIGHTY FOUR THAT IMPLEMENTS
ABILITY TO PAY HAVE LOOPHOLES
THAT PUT. UNSOPHISTICATED
HOMEOWNERS AT RISK OF LOSING
THEIR HOMES
BUT WE BELIEVE THAT PROVISIONS
OF SB TEN EIGHTY SEVEN REDUCE
THOSE RISKS.
IN PARTICULAR AND SOMEWHAT
SHOCKINGLY THERE IS NO
REQUIREMENT AS OF NOW THAT PACE
ADMINISTRATORS DO AN ABILITY TO
REPAY ANALYSIS BEFORE THE PACE
FINANCING DOCUMENTS ARE SIGNED.
IN OTHER WORDS A HOMEOWNER COULD
OBLIGATE YOURSELF TO A HOME
IMPROVEMENT CONTRACT IN
EXPECTATION OF RECEIVING PACE
FINANCING ONLY TO LEARN AFTER
THE FACT THAT SHE. HAD FAILED TO
QUALIFY FOR SUFFICIENT FINANCING
TO PAY FOR THE CONTRACT WHICH
SHE IS THEN BOUND TO PAY.
I WE HAVE FOR EXAMPLE A GUY ONE
OF OUR MEMBERS GOT CLIENTS ONE
BEATRICE THOMPSON SHE'S EIGHTY
THREE YEARS OLD SHE LIVES IN HER
HOME ON LESS THAN TWO THOUSAND
DOLLARS. PER MONTH IN INCOME YET
SHE SOMEHOW QUALIFIED FOR THIRTY
THOUSAND DOLLARS OF PEACE
FINANCED HOME IMPROVEMENTS. WHEN
MRS THOMPSON RECEIVED A
SETTLEMENT STATEMENT WEEKS LATER
SHOWING THAT SHE WAS GOING TO.
THOUSANDS OF DOLLARS MORE EACH
YEAR IN PROPERTY TAXES WHICH YOU
COULDN'T AFFORD SHE TRIED TO
CANCEL THE CAT THE. TRANSACTION
LAW AND THE HOME IMPROVEMENT
CONTRACTOR WHICH WAS ALSO THE
PACE FINANCING BROKER TRIED TO
FORECLOSE ON MRS THOMPSON'S
HOME.
THIS IS AN ABSURD AND HORRIFIC
SCENARIO AND THERE ARE MANY
OTHERS LIKE IT GOING ON RIGHT
NOW IN
STATE. THEY COULD BE AVOIDED IF
THE PROGRAM ADMINISTRATOR AND
THE AND THE CONTRACTOR WERE
REQUIRED TO DETERMINE A
BORROWER'S ABILITY TO REPAY
BEFORE EXECUTING.
THE PACE ASSESSMENT CONTRACT AS
WILL BE REQUIRED IN S. B. TEN
EIGHTY SEVEN AND EVEN STRONGER
pONE THAT WE BELIEVE IS
NECESSARY
TO AVOID PROBLEMS LIKE MRS
THOMPSON'S WOULD BE TO REQUIRE
THAT ABILITY TO PAY BE
DETERMINED BEFORE ANY HOME
IMPROVEMENT CONTRACT.
IS SIGNED AS A SECOND CONTRACT
AND BEFORE ANY WORK ON THAT HOME
IMPROVEMENT BEGINS.
WHAT KIND OF PROTECTION IS IT
AFTER ALL IF TO HAVE A CONTRACT
TO DETERMINE YOUR ABILITY TO
REPAY AFTER YOU'VE ALREADY
SIGNED THE CONTRACT?
VERY BRIEFLY OUR SECOND POINT.
THE.
THERE'S ALSO RIGHT NOW AN
EXCEPTION TO THE ABILITY TO
REPAY DETERMINATION IN
SITUATIONS OF EMERGENCY OR
IMMEDIATE NECESSITY WE ARE VERY
CONCERNED ABOUT. THE
VULNERABILITY OF THIS PROVISION
TO ABUSE AND WOULD LIKE TO SEE
IT NARROWLY AND STRICTLY DEFINED
SPT SEVEN ADDRESSES A PART OF
THAT DANGER. BY REQUIRING
PROGRAM ADMINISTRATORS IN THE
CIRCUMSTANCES TO VERIFY THE
HOMEOWNERS INCOME IN A TIMELY
MANNER. BUT THERE'S CLEARLY MORE
WORK TO BE DONE IN THIS AREA AND
FINALLY SP TEN EIGHTY SEVEN ALSO
STRENGTHENS THE ENFORCEMENT
POWERS OF THE DEPARTMENT OF
BUSINESS OVERSIGHT. THE BILL
ALLOWS THE DB ó TO TAKE
IMMEDIATE ACTION TO DISCIPLINE
PAY SOLICITORS IF THE DEPARTMENT
HAS A REASONABLE BELIEF. THAT A
SOLICITOR'S ACTING IN AN UNSAFE
MANNER RATHER THAN HAVING TO
FIRST JUMP THROUGH ALL KINDS OF
ADMINISTRATIVE HOOPS.
WE SEE NO REASON WHY DPO SHOULD
NOT HAVE THE POWER TO INTERVENE
IMMEDIATELY TO ENFORCE ITS OWN
REGULATIONS AND TO PROTECT
CONSUMERS FOR THE REASONS STATED
WE SUPPORT SB TEN EIGHTY SEVEN
AS A USEFUL MEASURE AND ASK FOR
AN AYE VOTE.
WE'RE GONNA HOLD TESTIMONY IN
THIS DOUBTS A QUORUM MADAM
SECRETARY PLEASE CALL THE ROLL.
SENATOR BRADFORD HERE.
HERE FIGHT ACT HERE BRADDOCK
HERE GALGIANI.
GALGIANI HERE.
GAINES.
WESO.
LARA.
PORTANTINO. PORTANTINO HERE.
THOMAS ESTABLISHED AND WE WILL
ASK FOR OUR NEXT WITNESS
ZAC E..
OKAY ADDRESS SHARON MEMBERS
ACCORDING JONES ON THE
CALIFORNIA CREDIT UNION LEAGUE
IN SUPPORT THANK YOU.
THIS CHAIR COMMITTEE MEMBERS
PADS AND TO LIVE WITH KEY PEOPLE
LOOK AFFAIRS I'M HERE ON BEHALF
OF THE CALIFORNIA MORTGAGE
BANKERS ASSOCIATION IN SUPPORT
OF THE BILL.
MISTER CHAIRMAN SENATORS
COMMINGLED WITH CALIFORNIA
BANKERS ASSOCIATION IN SUPPORT.
AS IT TURNED SENATORS SIGNED YOU
UGLY CALIFORNIA ASSOCIATION OF
REALTORS IN SUPPORT.
LISA SICK AND NATIONAL HOUSING
LAW PROJECT ALSO ON BEHALF OF
HOUSING AND ECONOMIC RIGHTS
ADVOCATES NATIONAL CONSUMER LAW
CENTER.
IN CONDITIONAL SUPPORT BASED ON
THE AMENDMENTS REQUESTED IN OUR
LETTER THINK THINK YOU.
TO ST MARTIN DEL WITH CONSUMERS
UNION ALSO IN SUPPORT THANK YOU.
pBEHALF OF THE CALIFORNIA
ASSOCIATION OF COUNTY TREASURERS
AND TAX COLLECTORS IN SUPPORT.
THANK YOU ANY ADDITIONAL
WITNESSES IN SUPPORT.
WITNESSES IN OPPOSITION.
EXISTS WITNESSES IN OPPOSITION
COMING FOR.
YES YES ARE YOU GUYS ARE.
MC THERE.
MISTER CHAIRMAN GOOD AFTERNOON.
AND MEMBERS OF THE COMMITTEE.
THANKS THE UP TO TO BE HERE
TODAY MY NAME IS CLIFF STATE
NUMBER EXECUTIVE VICE PRESIDENT
FOR NEW FINANCIAL.
WE ARE ONE OF THE.
PACE ADMINISTRATORS AND THE
STATE OF CALIFORNIA ARE CEO
CISCO DEGREES INVENTED PACE TEN
YEARS AGO WHEN HE WAS THE CHIEF
OF STAFF TO THE MAYOR BERKELEY.
APPRECIATE THE SENATORS.
INTEREST IN PACE AND THE
COMMITTEE'S INTEREST.
ONE TO GIVE A BRIEF BIT OF
BACKGROUND ON PACE.
FOR THOSE WHO ARE UNFAMILIAR
WITH IT IT'S A. PUBLIC PRIVATE
PARTNERSHIP THAT ALLOWS
HOMEOWNERS AND BUSINESS OWNERS
TO GET UP FRONT FINANCING FOR.
ENERGY AND WATER SAVING
IMPROVEMENTS ON THEIR
PROPERTIES.
AND.
SINCE OVER THE LAST TEN YEARS
IT HAS HAD REMARKABLE RESULTS.
IT HAS. ACHIEVED FIVE POINT
FIVE MILLION DOLLARS MILLION
TONNES OF GREENHOUSE GAS
EMISSION REDUCTION.
WHICH IS THE EQUIVALENT OF
TAKING ONE POINT TWO MILLION
CARS OFF THE ROAD FOR A YEAR.
HOMEOWNERS OF SAVED OVER FOUR
BILLION DOLLARS ON THEIR UTILITY
BILLS.
WE'VE SAVED OVER TEN BILLION
GALLONS OF WATER IN THE STATE OF
CALIFORNIA AND OVER FORTY
THOUSAND JOBS HAVE BEEN
CREATED.
CALIFORNIA ENERGY COMMISSIONER
DAVID HOCHSCHILD CALLED PACE THE
MOST SUCCESSFUL ENERGY FINANCING
PROGRAM IN CALIFORNIA HISTORY.
IT GOT EVEN BETTER LAST YEAR.
WITH THE PASSAGE OF AB TWELVE
EIGHTY FOUR NSP TO FORTY TWO
WHICH PROVIDED COMPREHENSIVE
CONSUMER PROTECTIONS.
WHICH WE STRONGLY SUPPORTED AND
ALSO PRINT.
PROVIDED REGULATORY OVERSIGHT
THROUGH THE DEPARTMENT OF
BUSINESS OVERSIGHT.
AND.
.
WE ARE.
.
WITH THE THE BILL TODAY HANNAH
TEN EIGHTY SEVEN WHERE IN
OPPOSITION.
WE HAVE ALREADY SPOKEN WITH
COMMITTEE STAFF WITH THE CENTER
STAFF. ARE COMMITTED TO WORKING
THROUGH THE ISSUES HERE WE
BELIEVE THAT THERE ARE SOME
REASONABLE PUBLIC POLICY.
AMENDMENTS TO THE BILL THAT
WILL ALLOW US TO SUPPORT IT.
AND WE LOOK FOR TO WORKING WITH
YOU ON IT.
CHAIRMAN BRADFORD MEMBERS OF THE
COMMITTEE HELLO MY NAME IS ARE
COMMITTEES YAK I'M CHIEF
STRATEGY OFFICER RENOVATE
AMERICA.
THANK YOU FOR THE OPPORTUNITY
JUSTIFY OPPOSITION TO.
TO S. B. TEN EIGHTY SEVEN.
MY COLLEAGUE CLIFF.
STATING FROM RENEW JUST
OUTLINED AND PACE AND ITS
ORIGINS AND AND.
AND
PAX.
RIGHT IN AMERICA'S HERO PROGRAM
AS OFFERED IN PARTNERSHIP WITH
FOUR HUNDRED AND FORTY CITIES
AND COUNTIES ACROSS THE STATE.
WE HAVE.
WERE PROUD TO BE PART OF THIS
INDUSTRY THAT HAS ORIGINATED
MORE THAN TWO HUNDRED THOUSAND
ASSESSMENTS IN THE STATE OF
CALIFORNIA.
AND I RENOVATE AMERICA ALONE HAS
HELPED A HUNDRED AND TWENTY FIVE
THOUSAND HOMEOWNERS IN THE STATE
MOVE FOR WITH INVESTMENT.
HAD TO IMPROVE THEIR HOMES AND
TO SAVE.
SAVE ENERGY AND WATER.
WE APPRECIATE SENATOR ROTH'S AND
HIS STAFF'S INTEREST IN THE
ENGAGEMENT ON PACE ISSUES.
HOW WORK CONCERNED HOWEVER THAT
S. B. TEN EIGHTY SEVEN WOULD
UNDERMINE PACE AND HARM
HOMEOWNERS?
BUT FUNDAMENTALLY UPENDING THE
UNDERWRITING REQUIREMENTS AND
FOR
THIS IS CREATED THREE BE TWELVE
EIGHTY FOUR.
WHICH AS HAS BEEN POINTED OUT
THE LEGISLATURE ADOPTED
OVERWHELMINGLY JUST MONTHS AGO.
AND WE ARE IN THE PROCESS OF
IMPLEMENTING THOSE REQUIREMENTS.
NOTE NOTICES BEEN MADE TODAY
ABOUT THE ABILITY TO PAY
REQUIREMENTS IN AB TWELVE EIGHTY
FOUR. THOSE WENT INTO EFFECT
SEVENTEEN DAYS AGO AND THE STATE
OF CALIFORNIA.
AND COMPREHENSIVE LEGISLATIVE
REFORM BEYOND AB TWELVE EIGHTY
FOUR HAS TAKEN PLACE IN THE
STATE OF CALIFORNIA OVER THE
LAST TWO LEGISLATIVE SESSIONS.
AND THAT'S FUNDAMENTALLY
REDEFINED THE PACE PRODUCT.
MANY OF THE STATUTORY
REQUIREMENTS INCLUDING THE
ABILITY TO PAY STATEWIDE
REGULATION INCREASE CONTRACTOR
MANAGEMENT LIABILITY STANDARDISE
RULES FOR THE INDUSTRY
DISCLOSURES.
AND THE LIKE ARE IN PLACE AS A
RESULT OF YOUR LEADERSHIP THAT
DID NOT EXIST BEFORE WHEN PACE
WAS ORIGINALLY OFFERED AT THE
MARKET.
AS PART OF THE EMERGING
BLUEPRINT FOR PACE IN
CALIFORNIA.
EXPANDED ACCESS TO AFFORDABLE
FOUND FINANCING IS NOW DELIVERED
WITH REAL AND SUSTAIN CONSUMER
PROTECTIONS.
AND WE'RE CONVINCED THAT THIS
WILL EVENTUALLY BECOME THE
STANDARD FOR PACE ACROSS THE
COUNTRY.
THAT BALANCE IS REALLY IMPORTANT
TO GET RIGHTS AND TO MAINTAIN.
AND UNFORTUNATELY OUR VIEW IS
THAT SB TEN EIGHTY SEVEN IS
CURRENTLY.
AS CURRENTLY CONSTRUCTED AND
UNDERMINES THAT BALANCE
AND.
UNDERMINES PACES A POINT OF
SALE PRODUCTS CREATES REGULATORY
CONFUSION AND INTERVENES AT A
TIME AND THE PACE MARKETPLACE.
AND.
WHERE THE TRANSFORMATIVE
REFORMS THAT HAVE BEEN PUT IN
PLACE BY THIS LEGISLATURE AND
SIGNED BY THE GOVERNOR?
ARE JUST NOW COMING INTO BEING.
AND IT DOES SO IN A WAY THAT.
CREATES FURTHER PRESSURE ON
THESE PROGRAMS
AND AND IN A WAY THAT INCREASES
UNCERTAINTY AND TERMS OF THE
FROM A REGULATORY AND STATUTORY
PERSPECTIVE.
AND HOW WE'VE OUTLINED OUR
CONCERNS IN MORE DETAIL TO THE
COMMITTEE AND HAPPY TO
DISCUSS THOSE.
IF THERE ARE ANY QUESTIONS.
WE BELIEVE THAT THE NEW
REGULATOR PACE IN CALIFORNIA THE
DEVIOUS BEST POSITION TO DEVELOP
ANY NEW RULES REGARDING PACE.
AND WE WERE REVIEW WE
RESPECTFULLY REQUEST MEMBERS TO
OPPOSE THIS LEGISLATION AND
ALLOW INDUSTRY AND OTHER
INTERESTED PARTIES.
TO WORK WITH A DVR TO FURTHER
STRENGTHEN THIS CRITICAL PUBLIC
PRIVATE PARTNERSHIP.
ADDITIONAL WITNESSES IN
OPPOSITION IF YOUR FORMAL ON
RIGHT THERE AND YOU CAN USE THAT
MICROPHONE RIGHT THERE THANK
YOU.
GOOD AFTERNOON CHRIS ROGERS WITH
WHITE GREEN ENERGY FIND.
I JUST WANT TO SAY WE ARE
ENCOURAGED BY THE DIALOGUE WITH
THE SENATOR AND HIS STAFF AND
COMMITTEE STAFF LOOK FORWARD TO
CONTINUING TO WORK WITH THEM ON
THIS BILL BUT MUST OPPOSE UNLESS
AMENDED FOR THE REASONS STATED
BY MY COLLEAGUES. BREAK.
EXODUS.
GOOD AFTERNOON JOE LA VIE AGE
HERE ON BEHALF OF SPRUCE FINANCE
PRODUCES A PROGRAM ADMINISTRATOR
IN CS CTA'S OPEN PACE PROGRAM AS
WELL AS W. ARE BECAUSE PROGRAM
SERVING OVER SOONER
JURISDICTIONS IN CALIFORNIA. A
CURRENTLY IN OPPOSITION BECAUSE
OF THE CHANGE TO THE ASSESSMENT
CONTRACT EXECUTION PRIOR TO
VERIFICATION OF INCOME WE FEEL
THAT THIS.
FUNDAMENTALLY PUTS PACE AT A
DISADVANTAGE COMPARED TO OTHER
HOME IMPROVEMENT FINANCE
PRODUCTS BY BUT WE ARE
ENCOURAGED BY WORKING WITH THE
SENATOR IN THEIR OFFICE. AND I
DO WANT TO APOLOGIZE AT OUR
POSITION DID NOT COME IN UNTIL
LATE YESTERDAY SO. WE.
I DO APOLOGIZE FOR THAT ON BUT
WE LOOK FORWARD TO WORKING WITH
THE SENATOR ON THIS ISSUE THANK
YOU. GREAT ANY ADDITIONAL
WITNESSES IN OPPOSITION.
SHANE HEARING ON BRING IT BACK
TO COMMITTEE ANY QUESTIONS BY
COMMITTEE.
BOB HOPE KEY AREA SENATOR ROTH
ON I WANT TO THANK YOU FOR THE
STREET FOR MEASURE A WE'RE HERE
PRIMARILY DAY TO ADDRESS SOME
THE PROMISES THAT WERE MADE ON
AB TWELVE EIGHTY FOUR LAST YEAR.
ASSIGNMENT BODIES AT THE BOB
MEZA A BILL ONE FOURTEEN HE'S NO
LONGER HERE TO LIVE UP TO THOSE
COMMITMENTS HERE SO WEIRD. DOING
THIS BILL TO HELP ADDRESS SOME
OF THOSE PROMISES THAT WERE AND
COMMITMENTS THAT WERE MADE. A
LAST YEAR.
.
IN ORDER FOR THAT BILL THE MOVE
FOR SHOW ON AGAIN I APPRECIATE
WHAT YOU'RE DOING I AS A FORMER
CHAIR OF UTILIZING COMMERCE SOME
VERY FAMILIAR WITH PAGE PROGRAM
AND.
HAVE BEEN GREAT SUCCESSES BUT
THERE'S NOT MUCH IMPROVEMENT
THAT WE CAN MAKE THEIR TO AND
AND THERE ARE ABUSES THAT HAVE
TAKEN PLACE. ADU'S PROGRAM AND I
THINK THIS BILL HELPS ADDRESS
THOSE I'M COMMITTED TO. CONTINUE
TO MOVE FORWARD TO I'M HAPPY
THAT.
THERE IS SOME COMMITMENTS FROM.
THE OPPOSITION TO CONTINUE
WORKING WITH TO SENATOR AS HIS
BILL MOST FORT SILL. ON ALLOW
SENATOR OFF TO CLOSE.
WELL THANK YOU MISTER CHAIR THIS
CLEARLY IS AN IMPORTANT PROGRAM
IN.
THERE'S SOME CLEARLY VERY VERY
IMPORTANT WORK BEING DONE AROUND
THE STATE BENEFITING.
A LOT OF FOLKS WE JUST NEED TO
DO A LITTLE BIT OF FINE TUNING
WITH RESPECT TO SOME OF THE
DETAIL TO ENSURE. A CONSUMER
PROTECTION TRANSPARENCY AND I'LL
LOOK FORWARD TO WORKING WITH ALL
OF THE STAKEHOLDERS TO MAKE
THIS.
AS PERFECT A PRODUCT IS WE CAN
POSSIBLY DO IN THIS LEGISLATURE.
IN A HOUSE OF IMPERFECTION SO I
WANT TO THANK YOU FOR YOUR
PATIENCE MY COLLEAGUES FOR YOUR
PATIENCE AND I RESPECTFULLY ASK
YOUR AYE VOTE.
WE HAVE A MOTION TO PASS TO
APPROPRIATIONS VISOR REVISED ACT
MADAM SECRETARY PLEASE CALL THE
ROLL.
MOTION IS TO PASS TO
APPROPRIATIONS COMMITTEE SENATOR
BRADFORD BY.
I FIGHT ACT LIKE MY DAD AYE
GAINES. GAINES AYE GALGIANI.
GALGIANI AYE WESO LARA
PORTANTINO.
WE HAVE FOUR VOTES WILL PUT THAT
BILL ON ON THE ON THE ON CALL
AND I WILL CONTINUE
SO THANK YOU FOR YOUR
PRESENTATION THANK YOU VERY.
NEXT UP WHO SENATOR JACKSON'S
AND SUGAR JACKSON HOUSE TWO
ITEMS.
IT SOONER IF YOU DON'T MIND.
SENATOR JACKSON BUTTE ON MINE
I'M GONNA SHOOT TO.
THE US IF WE CAN KEEP THE NOISE
DOWN FOLKS.
.
BERMAN ACTION TO TAKE 12-1 IF
YOU DON'T MIND PRESENT IN THAT
FIRST.
ITEM SEVEN.
VERY GOOD.
THIS IS GONNA.
WILL BE PROCESSED.
HE COULD GIVE ME JUST ONE MOMENT
.
GOOD AFTERNOON MISTER CHAIR AND
MEMBERS.
I'D LIKE TO PERCENT SP TWELVE
OR ONE THIS IS A BILL. THAT WILL
REQUIRE SUPERVISED FINANCIAL
ORGANIZATIONS TO PROVIDE TO A
CONSUMER. DOCUMENTATION
OUTLINING THE KEY CONCEPTS OF A
RE NEGOTIATED MORTGAGE LOAN OR
EXTENSION OF CREDIT AGREEMENT.
IF NEGOTIATIONS HAVE BEEN DONE
FOR THE ORIGINAL MORTGAGE IN
EITHER SPANISH CHINESE. TOGGLE
LOG.
A VIETNAMESE FOR KOREAN.
THIS BILL ALSO EXCUSE ME IT'S TO
GOLLUM.
TO GOLLUM.
GROWING UP IN BOSTON HAS BEEN
REALLY SOME SHORTFALLS TO IT MY
APOLOGIES FOR THE MIS
PRONUNCIATION. TAGALOG.
VIETNAMESE FOR KOREA.
THIS BILL ALSO ESTABLISHES A SET
TIME LINE FOR THE DEPARTMENT OF
BUSINESS OVERSIGHT TO HOLD A
LICENSE REVOCATION ORDER.
AS A A HEARING RATHER AS
REQUESTED BY A SUPERVISED
FINANCIAL ORGANIZATION SO THERE
ARE TWO ASPECTS TO THIS BILL.
AND BEFORE CONTINUING I'D LIKE
TO INDICATE.
ACCEPTING THE PROPOSED
AMENDMENTS ON PAGE FOUR OF THE
ANALYSIS.
AND THANK THE COMMITTEE.
FOR ASSISTANCE IN THAT REGARD.
MORTGAGE LOAN AND EXTENSION OF
CREDIT AGREEMENTS ARE ARGUABLY
AMONG THE MOST DAUNTING
FINANCIAL TRANSACTIONS THAT A
PERSON MAKES IN THEIR LIFETIME.
OF THIS I DUE TO THEIR COMPLEX
NATURE. CONSISTING OF COMPLEX
TERMINOLOGY PREPAYMENT PENALTIES
INTEREST RATE ADJUSTMENTS. THAT
SO TRAJECTORY WORDS SHOULD I AM
SURE THAT PRIOR TO BEGINNING TO
LOOK INTO A MORTGAGE LOAN OR
CREDIT. MANY FOLKS WOULD NEVER
HAVE HEARD BEFORE AND CERTAINLY
NOT BE FAMILIAR WITH.
FOR CONSUMERS WHOSE FIRST
LANGUAGE IS NOT ENGLISH WE CAN
ONLY IMAGINE HOW MUCH GREATER
THE LANGUAGE BARRIER POSES TO
THEM. HAVING A CLEAR
UNDERSTANDING OF WHAT THEY ARE
AGREEING TO.
NOW CALIFORNIA HAS BEEN
PROACTIVE BY REQUIRING THAT IF
THE INITIAL NEGOTIATIONS FOR A
MORTGAGE LOAN OR EXTENSION OF
CREDIT REQUIREMENT ARE PRIMARILY
NEGOTIATED IN SPANISH CHINESE
TAGALOG VIETNAMESE FOR KOREAN.
THE SUPERVISED FINANCIAL
ORGANIZATION PASSED TO PROVIDE
THE CONSUMER.
WITH DOCUMENTATION OUTLINING THE
TERMS OF THE AGREEMENT IN THE
LANGUAGE THAT THEY WERE
NEGOTIATED THAT THEY NEGOTIATED
IN PRIOR TO FINALIZING THEIR
AGREEMENTS.
THE DEPARTMENT OF BUSINESS
OVERSIGHT PROVIDES FINANCIAL
ORGANIZATIONS WITH TRANSLATED
VERSIONS OF DOCUMENTS FROM THE
FEDERAL DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT AND
CONSUMER FINANCIAL.
THE FOR CONSUMER FINANCE
PROTECTION BUREAU. THAT INCLUDE
THINGS LIKE THE GOOD FAITH
ESTIMATE DISCLOSURE FORM THE
LOAN ESTIMATE FORM THE CLOSING
DISCLOSURE FORM THAT THIS BILL
EXPANDS ON THOSE CONSUMER
PROTECTION SIMPLY BY REQUIRING
TRANSLATED VERSIONS OF THE KEY
TERMS. TO BE PROVIDED IN ONE OF
THOSE FIVE LANGUAGES WHEN THE
PARTIES THREE NEGOTIATE. THAT
ORIGINAL MORTGAGE LOAN OR
EXTENSION OF CREDIT.
IN THOSE PROP FIVE LANGUAGES
PREVIOUSLY MENTIONED HIGHLIGHTED
BY THE PROPOSED AMENDMENTS TO
THE.
DEPARTMENT OF OF THE BUSINESS
OVERSIGHT WILL PROVIDE VERSIONS
OF THE FOLLOWING DOCUMENTS
ORIGINALLY FROM THE FEDERAL
NATIONAL MORTGAGE ASSOCIATION.
THOSE DOCUMENTS FOR THE
AGREEMENT.
FOR MODIFICATION RETIREMENT A
STATION OR EXTENSION OF A
MORTGAGE THE LOAN MODIFICATION
AGREEMENT FOR PROVIDING FOR
FIXED INTEREST RATES AND THE
LOAN MODIFICATION AGREEMENT FOR
PROVIDING FOR ADJUSTABLE
INTEREST RATES AGAIN.
WHEN A NEW AGREEMENT AS
NEGOTIATED IN ONE OF THOSE FIVE%
LANGUAGES AND IS MEMORIALIZED IN
WRITTEN DOCUMENTS WHEN A PARTY
GOES TO RE MORTGAGE FOR TO
EXTEND CREDIT.
THEY SHOULD ALSO BE. ABLE
TO-RELY UPON DOCUMENTS THAT ARE
CONSISTENT WITH THAT LANGUAGE
THAT WAS THE SOURCE OF THE
ORIGINAL NEGOTIATION AND THE
SUBSEQUENT NEGOTIATION.
NOW.
THE.
THERE THERE WAS OF SOME CONCERN
AND THERE IS SOME CONCERN.
FROM THE OPPOSITION THAT
THEY'RE GOING TO HAVE TO PREPARE
THESE DOCUMENTS THAT IS NOT
CORRECT.
THE BILL SPECIFICALLY CALLS UPON
THE.
DEPARTMENT OF BUSINESS
OVERSIGHT.
TO PREPARE THOSE NECESSARY
DOCUMENTS.
AND THAT IS WHAT THIS BILL CALLS
FOR THEY HAVE INDICATED THOSE
DOCUMENTS WILL BE PREPARED IN
SEPTEMBER NO LATER THAN
SEPTEMBER. AND DUSTS THE
RELEVANT.
MORTGAGE COMPANIES AND SO FORTH
WILL HAVE THREE MONTHS
TO PUT THOSE IN OPERATION SO
THAT EFFECTIVE JANUARY FIRST OF
THE BILL SHOULD PASS AND BE
SIGNED INTO LAW THEY WOULD BE
READY TO PROCEED WITH THESE
DOCUMENTS. IF THERE CONTINUES TO
BE CONFUSION I AM COMMITTED TO.
MAKING SURE THAT THE LANGUAGE
IS AGREEABLE TO EVERYONE BUT
THAT IS THE INTENT OF THIS BILL
IT'S FAIRLY SIMPLE IF THE
ORIGINAL DEAL WAS DONE. AND
MEMORIALIZED IN ONE OF THESE
FIVE LANGUAGES SO WILL THE A
ADDITIONAL A MODIFICATION
DOCUMENTS.
THE BILL ALSO ADDRESSES A
SECOND ELEMENT.
OF OF THE LACK OF DUE PROCESS
FOR LICENSE REVIEW HEARINGS TO
TAKE PLACE NOW UNDER EXISTING
LAW. THE COMMISSIONER OF
BUSINESS OVERSIGHT HAS THE
AUTHORITY. TO REVOKE THE LICENSE
OF A SUPERVISED FINANCIAL
ORGANIZATION THAT FAILS TO FILE
THE REQUIRED FINANCIAL STATEMENT
PREPARED BY AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT.
WITH ITS LICENSE REVOKED THE
ORGANIZATION IS UNABLE TO
CONTINUE OPERATIONS UNTIL IT
GETS ITS LICENSE REINSTATED.
ONCE IT HAS PERFORMED THE
NECESSARY FINANCIAL
DOCUMENTATION WHICH WAS THE
SUBJECT OF THE.
LICENSE.
OF BEING REVOKED IN THE FIRST
PLACE THE LICENSE CAN GET
REINSTATED HOWEVER OF THE
PROBLEM WITH THIS PROCESS IS
THAT THERE IS NO REQUIRED DATE.
BY WHICH THEY MUST PROVIDE A A
HEARING.
FOR THAT REINSTATEMENT THIS BILL
WOULD REQUIRE THE DEPARTMENT TO
SET AND HOLD THE REVIEW HEARING.
NINETY DAYS AFTER THE LICENSE
REVOCATION ORDER IS ISSUED IF
THE ORDER IS NOT RESCINDED
EARLIER THAN THAT SORT BASICALLY
SETTING A TIME FRAME FOR THEM
THEY'VE ACTUALLY ASKED US TO DO
THIS IN THIS BILL. A BECAUSE
THEY WANT TO UP HONOR THEIR DUE
PROCESS REQUIREMENTS RIGHT NOW
THERE IS NO STATUTORY
REQUIREMENT. THEY WOULD LIKE TO
SAID IT IT NINETY DAYS AND WITH
THAT.
I BELIEVE THAT THEY ARE
ATEMPTING TO ASSIST CONSUMERS
AS WELL AS THE ENTITIES THAT DO
BUSINESS UNDER THEIR
JURISDICTION. THIS IS A COMMON
SENSE OF MEASURE FOR CONSUMER
PROTECTION AND PROTECTION FOR
THESE ARE AGENCIES. AND WITH ME
I HAVE TO ST MARTIN DALE OF
CONSUMERS UNION. TO SPEAK IN
SUPPORT OF THE BILL AND I ALSO
HAVE.
.
AN OFFICIAL FROM THE DEPARTMENT
OF BUSINESS OVERSIGHT.
THAT OF A INDICATES THAT THE.
NEW TRANSLATED FORMS WILL BE AS
I MENTIONED ACTUALLY ON THEIR
WEBSITE NO LATER THAN JUNE
THIRTIETH EARLIER THAN WHAT I
HAD PREVIOUSLY UNDERSTOOD. THAT
KIT WILL GIVE MORTGAGE LENDERS
AMPLE TIME.
THE PERFECT PREPARE FOR THE
IMPLEMENTATION OF ALL OF THESE
FORMS.
IN JANUARY TWENTY NINETEEN
SHOULD THE BILL BE ENACTED
WITHOUT I WOULD RESPECTFULLY ASK
FOR YOUR IPHONE.
THANK YOU TWO WITNESSES.
TURN MEMBERS SUZANNE MARTIN DO
WITH CONSUMERS UNION AND STRONG
SUPPORT OF THIS VERY VERY COMMON
SENSE MEASURE AS THE AUTHOR
SAID.
GIVEN THE EXISTING LAW ARGUE
PROVIDES TRANSLATION SERVICES IN
THESE OTHER FIVE MAJOR LANGUAGES
FOR ORIGINAL MORTGAGES IT
CERTAINLY IS LOGICAL TO DO THE
SAME FOR LOAN MODIFICATIONS.
ENSURING THAT CONSUMERS WHO
ENTER INTO A LOAN MODIFICATION
UNDERSTAND WHAT THEIR OBLIGATION
IS IS REALLY THIS IS REALLY
ABOUT INSURING THAT PEOPLE WHO
HAVE.
LIMITED ENGLISH PROFICIENCY
COULD BECOME FROM IMMIGRANT
COMMUNITIES HAVE A SHOT AT
MAINTAINING STABLE HOMEOWNERSHIP
A LOAN MODIFICATION IS OFTEN THE
MOST CRUCIAL TOOL TO PREVENT
FORECLOSURE.
WHEN HOMEOWNER IS STRUGGLING AS
AS THIS COMMITTEE OF COURSE
REMEMBERS A COUPLE WEEKS AGO WE
APPROVED OF THIS COMMITTEE
APPROVED S. B. EIGHT ONE EIGHT
WHICH SEEKS TO PRESERVE. ON
PROTECTIONS IN THE HOMEOWNER
BILL OF RIGHTS FOR CONSUMERS
SEEKING A LOAN MODIFICATION SO
THIS MEASURE REALLY COMPLIMENTS
THAT BY ENSURING THAT SHOULD A
CONSUMER BE ABLE TO OBTAIN A
LOAN MODIFICATION. PEOPLE HOW
DOCUMENTS THAT ARE GOING TO MAKE
IT EASIER FOR THEM TO
UNDERSTAND.
THEIR NEW OBLIGATION AND
HOPEFULLY DOWN THE WIND BE
SUCCESSFUL REPAYING THAT
OBLIGATION SO THIS REALLY IS A
WIN FOR CONSUMERS AND
PARTICULARLY IN IMMIGRANT
CONSUMERS AND FOR THESE REASONS
WE ARE WE STRONGLY SUPPORT
REQUEST I DON'T. THINK YOU.
THANKS VERY MUCH CHAIRED A TED
MERMAN AGAIN FROM THE CALIFORNIA
LOW INCOME CONSUMER COALITION
HERE TO EXPRESS OUR SUPPORT.
FOR THE BILL ON BEHALF OF THE
STATE'S LOW INCOME CONSUMERS
CLICK APPRECIATE SENATOR
JACKSON'S LEADERSHIP ON THIS
IMPORTANT ISSUE. PA AND WE
BELIEVE THAT WHEN THIS BILL
BECOMES LAW COMMONSENSE
TRANSLATION REQUIREMENTS. WILL.
AS THEY SHOULDAPPLY TO
VIRTUALLY ALL CONTRACTS FOR
LOANS ARE EXTENSIONS OF CREDIT
IN THIS STATE TO THE EXTENT THAT
THAT'S PERMITTED BY FEDERAL LAW.
.
PROTECT CONSUMERS AT LIMITED
ENGLISH PROFICIENCY IS THE WORK
OF JUSTICE.
AND.
.
WE WOULD ADD THAT WE HOPE TO.
IN THE FUTURE BUILDING ON THIS
BILLS.
TO AND AND WORKING WITH SENATOR
JACKSON WITH THIS COMMITTEE TO
EXTEND UP THE POT IN THE FUTURE
THE REQUIREMENTS OF THE
TRANSLATION LAW TO COVER ALL
TRANSLOCATES HUMOR CONTRACT
SUPERVISED BY. THE DB ó MAKING
IT A CONDITION OF LICENSURE IN
THE MEANTIME.
SUPPORT THIS VERY HELPFUL BILL
AS WRITTEN WE ASK YOUR AYE VOTE.
THANK YOU IN ADDITIONAL
WITNESSES IN SUPPORT.
PHONE LINE AT THE MICROPHONE TO
YOUR RIGHT TO.
ONLY ST LOUIS OF THE CENTER FOR
RESPONSIBLE LENDING IN SUPPORT
THANK YOU.
HI SABRINA HAMLET THE CALIFORNIA
ACID BUILDING COALITION IN
SUPPORT.
OKAY. THAT ENTER WITNESSES IN
SUPPORT WITNESSES IN OPPOSITION.
WE'LL HAVE TO A TO TABLE AND.
WILL ALLOW THE OTHERS TO.
POSITION OVER IN THE RIGHT.
MISTER CHAIRMAN SENATORS KEVIN
GOULD OF THE CALIFORNIA BANKERS
ASSOCIATION WE APPRECIATE.
THE WORK OF THE SENATOR. I AS
WELL AS THE COMMITTEE STAFF IN.
THE AMENDMENTS THAT HAVE BEEN
PRESENTED AND ACCEPTED.
AND BASED UPON THE AMENDMENTS
THAT HAVE BEEN PRESENTED AND
ACCEPTED IN THE UNDERSTANDING
THAT THE.
.
THE DEPARTMENT OF BUSINESS
OVERSIGHT WILL HAVE THE FORMS.
AVAILABLE FOR LICENSEES ON THE
WEBSITE.
ESSENTIALLY BY JUNE THIRTY. HOW
WE ARE PLEASED TO REMOVE OUR
OPPOSITION?
OR OPPOSITION WAS BASED ON
FOLLOWING THE MODEL THAT ALLOW
THE INDUSTRY TO ACHIEVE.
CONSENSUS SEVERAL YEARS AGO.
HIGH AND.
TO THE EXTENT OF THE MODELS
FOLLOWED HERE BOTH IN TERMS OF
THE FACT THAT THE DEPARTMENT OF
BUSINESS OVERSIGHT WILL FURNISH
THE FORMS. FOR USE BY LICENSEES.
AND THE DELAYED OPERATIVE DATE A
TO ALLOW LICENSEES HAVE
SUFFICIENT TIME FOR COMPLIANCE
AGAIN WE'RE PLEASED ROOM OF OUR
OPPOSITION AND AND THANK THE
COMMITTEE IN THE OTHER FOR THE
WORK.
Q.
EXTRA CHAIR COMMITTEE MEMBERS
ZANZA LOW WITH KEEPING PUBLIC
AFFAIRS I'M HERE ON BEHALF OF
THE CALIFORNIA MORTGAGE BANKERS
ASSOCIATION. AND I'M VERY HAPPY
TO SAY AS THE BILL IS PROPOSED
TO BE AMENDED THE COMMITTEE
ANALYSIS WE ALSO WOULD BE
REMOVING OUR OFFICE
SHOULD I WANT TO THANK YOU AND
THE COMMITTEE CONSULTANT AND.
THE AUTHOR FOR WORKING WITH US
TO COME UP WITH THIS COMPROMISE
RIGHT THANK YOU NEXT WITNESS.
MISTER CHAIRMAN MEMBERS CORD
AGENTS ON THE CALIFORNIA CREDIT
UNION LEAGUE ONE ONLINE MY
COMMENTS WITH THE PREVIOUS
SPEAKERS AND THANK THE SENATOR
FOR WORKING WITH US AND THINK
THE COMMITTEE ALSO.
THANK YOU.
MARGARET GLANCING ABOUT
THROUGHOUT THE CALIFORNIA
COMMUNITY BANKING NETWORK ALSO
LINING WITH THE PREVIOUS
COMMENTS THANK YOU TO STAFF AND.
COULD CHAIR AND THE AUTHORS
WEALTHY.
WELL YOU NEVER FOR THE
CALIFORNIA CHAMBER OF COMMERCE
ALSO ALIGNING WITH PREVIOUS
SPEAKERS WITHDRAWING OPPOSITION.
GREAT HOW QUE.
NO ADDITIONAL WITNESSES IN
OPPOSITION AND YOU SEEM TO
REMOVE YOUR OPPOSITION.
BRING IT BACK TO COMMITTEE ANY
QUESTIONS OR COMMENTS BUCK
COMMITTEE ABOUT SENATOR GALGIANI
I WANT TO THANK THE AUTHOR FOR
TAKING THE AMENDMENTS AGREEING
THAT OF MELODIC CON. FOR THE TWO
WORDS THAT I REMEMBER FROM
TAGALOG WHEN I WORKED AT THE
HOSPITAL I WOULD GOING WOULD
TELL MY PATIENTS WAKE UP AND
OPEN YOUR EYES.
IT'S VERY DIFFICULT WHEN YOU'RE
WORKING WITH INDIVIDUALS WHO ARE
SPEAKING ANOTHER LANGUAGE AND
INTO THE HOLLOW THERE ARE
APPROXIMATELY THIRTY DIALECTS.
AND SO EVEN WHEN I WORKED AT THE
HOSPITAL IN COULD LEARN A FEW
WORDS IN ONE DIALECT.
WITH THE NEXT PATIENT THAT
SPOKE ANOTHER THAT WE COULDN'T
COMMUNICATE CELL ON ANYWAY THANK
YOU FOR FOR TAKING THOSE
AMENDMENTS AND IT I THINK IT'S A
GOOD BELL AND.
APPRECIATED.
GRADE AND IT JUST A CAUTIOUS AB
GATES. SPIN MOVE BY SENATOR
PORTANTINO.
.
WE HAVE A.
AB WHERE YOU THE WEEKLY THANK
YOU WHO WE HAVE A
YOU PASS AS AMENDED TO
APPROPRIATIONS SENATOR JACKSON.
ALTHOUGH I'M SORRY.
DO PASS WOULD AMENDMENTS TO BE
TAKEN IN JUDICIARY LOOKING AT
THE WRONG BILL AND.
SENATOR JACKSON'S GILLETTE
CLOSE WELL I'VE LEARNED THAT
WHEN YOUR HEAD SHOT UP VIDAK
OFF.
I JUST NOT THAT COMMON I HAVE.
SUPPORT FROM SOME OF THESE FOLKS
SO I'M JUST SIMPLY GOING TO
THANK EVERYONE FOR THEIR HARD
WORK IN THIS INDUSTRY AYE VOTE.
THANK YOU.
ONCE AGAIN OUT STATE I DO PASS
WOULD.
WITH AMENDMENTS TO BE TAKEN IN%
JUDICIARY MOUNT SECRETARY PLEASE
CALL THE ROLL.
MOTIONS TO PASS WITH AMENDMENTS
TO BE TAKEN AND JUDICIARY
SENATOR BRADFORD ARE.
I BIDAK ALL I PRODUCT AYE
GAINES.
GAINES AYE GALGIANI.
GALGIANI AYE WAS SO. WITH SO I
LARA PORTANTINO AYE PORTANTINO
AYE.
WE HAVE SIX VOTES WILL LEAVE
THAT.
ITEM ON CALL BUT YOU HAVE MORE
THAN ENOUGH TO GET OUT OF
COMMITTEE. BEFORE WE TAKE YOUR
NEXT ITEM ON THEN ASKED OUR
SECRETARY TO CALL.
THE CONSENT CALENDAR WE HAVE
AGAIN TWO ITEMS ON CONSENT S.
B..
THIRTEEN SIXTY ONE AND SP TEN
FIFTY FIVE WHICH CALLED COMMIT
CONSENT CALENDAR.
CONSENT CALENDAR IS TO PASS
SENATOR BRADFORD HIGH BRADFORD
AYE RIGHT ACT. FIGHT ACAI
KILLED.
GAINES. GAINES AYE GALGIANI.
GALGIANI AYE WEST SO. WITH SO I
LARA PORTANTINO. PORTANTINO AYE.
SIX GREAT.
IF SIX VOTES IN THAT WILL LEAVE
THAT OPEN FOR THE ABSENT MEMBERS
NEXT UP CENTER JACKSON NINE ONE
S. B. EIGHT TWO SIX WHEN YOU'RE
READY SENATOR JACKSON'S.
WHY DON'T YOU?
HEARING WILL HELD IS HERE.
WE CAN.
HE WANTED TO.
OKAY.
MISTER CHAIRMAN COR HOW MANY
SPEAKERS TO GO LIKE TO HAVE I
DON'T LIKE. ASKING FOR TWO
PRIMARY WITNESSES AND THEN WILL
HAVE THE ADDITIONAL ME TO USE.
FORM ON.
VERY GOOD THANK YOU.
GOOD AFTERNOON MISTER CHAIR AND
MEMBERS I AM PROUD TO PRESENT.
S. B. EIGHT TWENTY SIX
AND EFFECTIVE APPROACH TO
REQUIRING MORE WOMEN DIRECTORS
ON THE BOARDS OF PUBLICLY HELD
CORPORATIONS IN CALIFORNIA.
CALIFORNIA WOMEN MAKEUP FIFTY
TWO PERCENT OF OUR STATE'S
POPULATION BUT ONLY ABOUT TWENTY
EIGHT PERCENT OF THE DIRECTORS
OF OUR PUBLIC CORPORATIONS.
WHICH ALSO INCLUDE NONPROFIT
BOARDS THE TWENTY EIGHT PERCENT
IS A RATHER HIGH NUMBER. OF
RELATIVE TO THE PRIVATE
CORPORATIONS WE HAVE BUT IF YOU
BRING THEM TOGETHER WITH OUR
NONPROFIT BOARDS AS WELL AS THE.
A PUBLIC CORPORATIONS A IT COMES
TO TWENTY EIGHT PERCENT NON THE
LESS TWENTY EIGHT PERCENT.
MEANS THAT ROUGHLY SEVENTY
PERCENT.
OF THE STATE'S CORPORATIONS ARE
OPERATING WITHOUT THE BENEFIT OF
THE EXPERIENCE PERSPECTIVE IN
TOOLS THAT WOMEN BRING WITH THEM
TO THE CORPORATE SETTING.
RESEARCH CLEARLY SHOWS THAT
BOARDS WITH WOMEN MEMBERS
PERFORM BETTER IN THE
MARKETPLACE.
BY HAVING SUCH LOW PARTICIPATION
RATES FOR WOMEN IN CALIFORNIA'S
CORPORATE LEADERSHIP RANKS WE
EFFECTIVELY INHIBIT OUR OWN
ECONOMIC PERFORMANCE AS A STATE.
OTHER NATIONS HAVE PREVIOUSLY
ACKNOWLEDGED THE FINANCIAL
BENEFITS AND REQUIRE A
PERCENTAGE OF BOARD MEMBERSHIP
TO BE FEMALE.
THE US REPRESENTING THE
EXPERIENCE EXPERTISE AND WISDOM
OF HALF THE POPULATION. AND AS
WOMEN MAKE UP APPROXIMATELY
SEVENTY PERCENT OF CONSUMERS.
THE FEMALE PERSPECTIVE PROVIDES
A LOGICAL ECONOMIC BENEFIT FOR
CORPORATIONS AND HAS INDEED BEEN
PROVEN TO BE SUCH.
THIS MEASURE TAKES THE FIRST
STEP TOWARDS CLOSING THIS GENDER
GAP.
THE MEASURE INCREASES GENDER
DIVERSITY ON CORPORATE BOARDS BY
REQUIRING EACH PUBLICLY HELD
CORPORATION TO IS HEADQUARTERED
IN CALIFORNIA TO HAVE AT LEAST
ONE WOMAN.
ON ITS BOARD OF DIRECTORS BY THE
END OF TWENTY NINETEEN.
FURTHER BEGINNING IN JULY OF
TWENTY TWENTY ONE. THE BILL
REQUIRES A MINIMUM OF TO BOARD
DIRECTORS ON BOARDS WITH FIVE
DIRECTORS AND AT LEAST THREE
WOMEN ON BOARDS WITH SIX OR MORE
DIRECTORS.
THE RESEARCHERS I MENTIONED IS
ABUNDANT ON THE INFLUENCE OF
WOMEN SERVING ON BOARDS.
INCLUDING A TWENTY SIXTEEN
MCKINSEY AND COMPANY STUDY QUOTE
THAT REVEALED NATIONWIDE THE
COMPANIES WHERE WOMEN ARE MOST
STRONGLY REPRESENTED AT BOARD OR
TOP MANAGEMENT LEVELS. ARE ALSO
BUSINESSES THAT PERFORM THE BEST
IN PROFITABILITY PRODUCTIVITY
INNOVATION GOVERNANCE BETTER
PERFORMANCE AND WORK FORCE
ENGAGEMENT.
THE MCKENZIE STUDY OFF A ALSO
FOUND THAT COMPANIES WITH THREE
OR MORE WOMEN IN SENIOR
MANAGEMENT POSITIONS SCORED
HIGHER ON AVERAGE ON THE
ORGANIZATION PERFORMANCE
PROFILE.
THEN COMPANIES WITH NO WOMEN ON
BOARDS OR IN THE EXECUTIVE
RANKS.
I AUTHOR RESOLUTION BACK IN
TWENTY THIRTEEN SCR SIXTY TWO.
THAT URGED.
DIDN'T MANDATE BUT JUST URGE BY
TWENTY SEVENTEEN THAT EACH
PUBLIC COMPANY INCREASE THE
NUMBER OF WOMEN ON ITS BOARDS
TWO ONE TWO OR THREE DEPENDING
UPON THE SIZE OF THE BOARD.
CALIFORNIA WAS THE FIRST STATE
IN THE UNITED STATES TO ADOPT
THIS TYPE OF RESOLUTION. AND IT
WAS FOLLOWED BY AT LEAST FIVE
OTHER STATES THAT HAVE PASSED
SIMILAR MEASURES HOWEVER AS OF
THE END OF TWENTY SIXTEEN FEWER
THAN TWENTY PERCENT OF THE
RUSSELL THREE THOUSAND COMPANIES
HEADQUARTERED IN CALIFORNIA. HAD
THE MINIMUM NUMBER OF WOMEN
DIRECTORS CALLED FOR IN THIS
RESOLUTION.
SO.
CLEARLY WE NEED TO DO MORE THAN
CHEST URGE
AND.
THIS BILL NOT ONLY WILL PROVIDE
FOR AN ECONOMIC BENEFIT FOR
THESE CORPORATIONS BUT ALSO WILL
HELP CHANGE THE CULTURE.
WITH WOMEN ON THESE BOARDS
WOMEN BRING TO THE TABLE A LIFE
EXPERIENCE THE TOP THAT WILL
ENCOURAGE GREATER WORKFORCE LIFE
BALANCE AS THESE ARE WOMEN MANY
OF WHOM THEMSELVES. HAVE HAD TO
BALANCE AND JUGGLED THE LIVES OF
WORK AND FAMILY. OF RECOGNIZING
THE IMPORTANCE OF CHILDCARE FOR
EXAMPLE RECOGNIZING THE
IMPORTANCE OF. FAMILY LEAVE TO
CARE FOR ONCE LOVED ONES THIS
WILL BE I BELIEVE A WIN WIN.
FOR THESE COMPANIES THE DATA
SHOWS THAT AND ALSO FOR THE
ADVANCEMENT OF OUR STATES OF
WELL BEING.
THE SOME OF THE ISSUES THAT
WERE RAISED IN THE ANALYSIS.
TALKING ABOUT UNINTENDED
CONSEQUENCES FOR EXAMPLE
INDICATING PERHAPS UNDER THIS
BILL A MAN OF COLOR MIGHT BE
PASSED OVER FOR A WHITE FEMALE
CANDIDATE. I WOULD NOTE THAT OUT
BY CALLING FOR WOMEN WE ARE OF
COURSE INCLUDING ALL WOMEN
INCLUDING A REGARDLESS OF RACE
ETHNICITY OR ORIENTATION. AND SO
AGAIN WE ARE EXPANDING THIS TO
PROVIDE.
THE OPPORTUNITY TO REMOVE THE
BARRIERS THAT SEEM TO HAVE
EXISTED IN OUR CORPORATE WORLD
IN OUR POLITICAL WORLD IN ALL
WORLDS WHERE WE SEE GENDER AS
THE PRIMARY SOURCE OF
DISCRIMINATION IN OUR SOCIETY.
WE HAVE GOT TO OVERCOME THIS
AND DIE THIS IS ONE OF THOSE
MEASURES THAT I BELIEVE
ADDRESSES THAT PROBLEM THE
COMMITTEE ANALYSIS ALSO RAISES
THE ISSUE OF OVER BOARDING FOR
FEMALE. EXECUTIVES IMPLYING
THERE MIGHT NOT BE A SUFFICIENT
NUMBER OF QUALIFIED WOMEN. AS
THE MANY.
WOMEN WHO ARE HERE TODAY CAN
AND WILL TESTIFY THERE ARE MANY
EXTRAORDINARILY QUALIFIED WOMEN
IN THE PIPELINE WHO ARE WILLING
AND ABLE TO SERVE. IF THEY'D
ONLY BE ASKED.
AND ENCOURAGED TO DO SO.
IF ANYTHING WE BELIEVE THIS BILL
WILL HELP TO ADDRESS OVER
BOARDING AMONG MALE BOARD
MEMBERS BY FORCING BOARDS TO
DIVERSIFY THEIR MEMBERSHIP.
AND THE COMMITTEE SUGGESTED A.
AN INTERESTING CONCEPT ALL OF A
AMENDING THE BILL TO INCLUDE THE
ROONEY RULE WHICH WAS
ESTABLISHED BY THE NATIONAL
FOOTBALL LEAGUE. AS AN ATTEMPT
TO FORCE TEAMS TO INTERVIEW AT
LEAST ONE MINORITY CANDIDATE
BEFORE MAKING A HIRING DECISION.
WE BELIEVE HOWEVER AND WE HAVE
INQUIRED IN THIS SKIT TO THIS
CONCEPT THAT THESE AMENDMENTS
DON'T ACHIEVE THE GOALS OF THE
BILL. WHICH ARE REALLY FOCUSED
ON THE ROLE OF WOMEN ON PUBLICLY
TRADED CORPORATE BOARDS AND
GROWING THESE NUMBERS. ARE THE
ROONEY RULE FRANKLY DOES.
NOTHING MORE THAN REQUIRED AND
INTERVIEW FOR WOMEN.
AND WHICH BOARDS CAN EASILY
SIDESTEPPED WITHOUT ANY MEANING
FULL CONSIDERATION OF THESE
CANDIDATES IN THE SPORTS CONTEXT
IN.
I HAPPEN TO KNOW WHO ROONEY WAS
AND IS IN THE ROOM THE FAMILY.
THOUGH THE RULE ITSELF
ORIGINATED AS HEAD OF A
ORIGINATED DOESN'T REALLY
INDICATE.
OR APPEAR TO HAVE HAD THAT A
MEANINGFUL IMPACT ON THE LACK OF
DIVERSITY IN COACHING. IN FACT
GIVEN THE DEPTH OF THE BET THE
BENCH SO TO SPEAK IN
PROFESSIONAL FOOTBALL. A RATE OF
MINORITY COACHES OF TWENTY TWO
PERCENT IN TWENTY EIGHTEEN IS
FRANKLY APPALLING.
REPORTING A BY BOTH THE S. P.
AND AND THE GUARDIAN SHOW IT'S
LIKELY THAT THE LEGACY OF FORMER
COACH AND SPORTS ANALYST TONY
DUNGY.
A GREAT COACH FOR THE BALTIMORE
COLTS.
HAS IN FACT HAD THE GREATEST
IMPACT IN BECAUSE COACHES WHO
WHO HAD TIES WITH DUNGEY ACCOUNT
FOR FORTY THREE PERCENT OF
MINORITY HEAD COACHING HIRES
OVER THE PAST TWENTY YEARS.
INCLUDING THIRTY NINE PERCENT OF
THOSE HIRED UNDER THE ROONEY
RULE SO IN THE BOARD CONTEXT AS
WELL AND MY WITNESSES WILL
TESTIFY. THE INTERVIEW CENTER
CONDUCTED ARE DONE IN SECRET AND
THERE IS NO WAY TO KNOW FOR
CERTAIN HOW A COMPANY MAY OR MAY
NOT COMPLY. THE ONLY WAY TO MOVE
THE NEEDLE ON THIS ISSUE WE
BELIEVE IS TO ESTABLISH A SEED
FOR WOMEN AT THE BOARDROOM
TABLE.
AND I DO NOT DISPUTE THE CHAIRS
ASSERTION THAT THE VERSE CITY IN
GENERAL IS A CHALLENGE.
BUT TO MOST PUBLICLY TRADED
BOARDS AND I WOULD CERTAINLY
SUPPORT A BILL DIRECTED MORE
BROADLY AT THAT IN THE FUTURE.
SHOULD THAT COME BEFORE US BUT
THE BILL BEFORE US TODAY TAKE
CERTAIN THE MORE NARROW LOOK AT
INCREASING GENDER DIVERSITY IN
THE BOARDROOM AN EXECUTIVE
OFFICE SUITES ACROSS THE STRAIT
I BELIEVE. IF WE CAN OPEN UP THE
THE RULES OPEN UP THE BOARD
ROOMS TO MORE WOMEN WE WILL SEE
GREATER DIVERSITY OVERALL. AND
IT IS WITHOUT FOCUSING THAT.
THAT IMPORTANT. IMPORTANT
OBSTACLE THAT WE NEED TO SHATTER
THROUGH AND WE KNOW THE DATA
SHOWS THAT IT IS AN EFFECTIVE
MEANS. AND THAT IT DOES A CREATE
GREATER OPPORTUNITY AND SUCCESS
FOR CORPORATIONS BY WOULD LIKE
TO INTRODUCE A HILDA KENNEDY WHO
IS THE OWNER OF IMPACT TRI STATE
CERTIFIED DEVELOPMENT COMPANY.
IN THE INLAND EMPIRE.
IN MY COAUTHOR SENATOR LABELS
DISTRICT SHE SERVES ON THE BOARD
OF TRUSTEES OF CALIFORNIA
BAPTIST UNIVERSITY AND THE BOARD
OF CALIFORNIA SMALL BUSINESS
ASSOCIATION.
IN ADDITION TO BEING THE PAST
STATEWIDE PRESIDENT FOR NATIONAL
ASSOCIATION OF WOMEN BUSINESS
OWNERS IN CALIFORNIA. AND BETSY
BURKE MCCREDIE ARE WHO IS THE
CEO OF BURKE MARK CLAYTON
RETAINED EXECUTIVE SEARCH IN LOS
ANGELES AND CEO OF THE NATIONAL
ORGANIZATION CALLED TWENTY
TWENTY WOMEN ON BOARDS. A
RESEARCH AND PUBLIC EDUCATION
CAMPAIGN TO ACHIEVE TWENTY
PERCENT A PUBLIC COMPANY BOARDS
SHEETS.
A TO BE HELD BY WOMEN OF ALL
ETHNIC BACKGROUNDS.
BY TWENTY TWENTY SHE'S ALSO THE
AUTHOR OF THE BOOK THE BOARD
GAME IN THE PAST STATEWIDE
PRESIDENT OF NOVEL CALIFORNIA
PERHAPS SHOULD WE START WITH
THE.
THE BETSY BURKE MERCREDI THANK
YOU VERY MUCH SENATOR THANK YOU.
GOOD AFTERNOON SENATOR AND ALL
OF YOU COMMITTEE MEMBERS THANK
YOU FOR HEARING OUR SB EIGHT
TWENTY SIX TODAY. I'D I WOULD
LIKE TO ES* OF A RETAIN
EXECUTIVE SEARCH FIRM AT JUST
MAKE THREE POINTS ABOUT WHY THIS
IS SO IMPORTANT TO HAD A SEAT.
FOR A WOMAN ONTO CORPORATE
BOARDS. OF NAY THIS IS A
BUSINESS ISSUE AND IT'S VERY
IMPORTANT TO POINT OUT THE
DIFFERENCE BETWEEN PUBLIC AND
PRIVATE COMPANIES ALL OF YOU ARE
VERY AWARE BUT A LOT OF PEOPLE
OUTSIDE OF OUR INDUSTRY. OF
REALLY DON'T THINK ABOUT THE THE
THE IMPORTANCE OF A AND THE
RESPONSIBILITIES OF PUBLIC WE
HELD COMPANIES ARE OWNED BY
SHAREHOLDERS. AS OPPOSED TO
PRIVATELY HELD COMPANIES SMALL
BUSINESSES THAT ARE NOT OWNED BY
SHAREHOLDERS OTHER THAN PERHAPS
THE TO THE HOMEOWNER HIMSELF OR
HERSELF. SO.
WE'RE TALKING ONLY ABOUT PUBLIC
COMPANIES THAT ARE OWNED BY
SHAREHOLDERS AND THAT.
HERETOFORE THE ONLY PRESSURE
THAT COMPANIES FEEL.
IN ORDER TO ADD DIVERSITY TO
THEIR CORPORATE BOARDS IS FROM
INSTITUTIONAL INVESTORS.
LOTS OF TIME SMALL INVESTORS
ARE RARELY HEARD FROM BUT IT'S
THE INVESTORS IN THE MONEY
BEHIND THE. PUBLIC CORPORATIONS
THAT THAT SPEAKS LOUDLY SO THE
AND. MOST IMPORTANT.
A REINFORCING WHAT THE SENATOR
SAID ABOUT THE.
CREDITS WE SEND THE MCKINSEY
REPORT IS THAT AS A BUSINESS
ISSUE.
COMPANIES RECOGNIZE AND AND.
INSTITUTIONAL INVESTORS
RECOGNIZE THAT HAVING MORE WOMEN
ON BOARD IS GOOD FOR THE
INVESTORS COMPANIES PERFORM
BETTER AND DOES THE RESEARCH
SHOWS THAT SO AND AS AN EXAMPLE.
BLACKROCK WHICH MANAGES SIX
TRILLION DOLLARS UNDER
MANAGEMENT.
JUST TWO WEEKS AGO MADE A
PUBLIC ANNOUNCEMENT THAT THEY
WOULD VOTE AGAINST THE PROXIES
THAT OWNED IT THEIR PORTFOLIO
COMPANIES VOTE AGAINST ALL
DIRECTORS OF COMPANIES THAT DID
NOT. HAVE A WOMAN ON THEIR
BOARDS AND NO INVESTORS EVER
SAID THAT BEFORE.
AND THE NEW YORK STATE LOVE BAY
NEW YORK STATE PENSION FUND SAID
THAT THEY WOULD VOTE AGAINST THE
DIRECTORS OF THE OF WHO ARE ON
THE NOMINATING COMMITTEE. OF
COMPANIES THAT DID NOT HAVE TO
WOMEN ON THEIR BOARDS SO THIS IS
A RECOGNITION ABOUT THE
IMPORTANCE OF HAVING WOMEN ON
THE BOARDS TO HAVE THE COMPANIES
BE MORE PROFITABLE. AND THE
INSTITUTIONAL INVESTORS OF
COURSE REPRESENT AN ARE STEWARDS
OF RETIRED EMPLOYEES OF THE NEW
YORK STATE SYSTEM JUST LIKE
CALPERS AND CAL STIRS WHICH OF
COURSE ARE THE LARGEST
INSTITUTIONAL INVESTORS IN THE
WORLD RIGHT HERE IN OUR STATE.
AND THE RETIRED EMPLOYEES DON'T
HAVE A CHOICE OF WHAT COMPANIES
THEIR MONEY IS INVESTED AND SO
THEY'RE GOING TO BE HAPPY TO
KNOW THAT MORE WOMEN ON OUR OR
ON BOARDS THAT THEY AT LEAST
HAVE A CHANCE OF OF. OF EARNING
MORE MONEY WITH THEIR DIVIDENDS
ESPECIALLY IN THEIR LATER YEARS.
ANOTHER IMPORTANT ISSUE TO SHARE
WITH YOU IS THAT THERE ARE VERY
FEW OPEN SEATS THAT COME OPEN
FOR MEN OR WOMEN.
DURING THE COURSE OF A YEAR AND
THAT'S WHY IT'S SO IMPORTANT
SUCH AN UNUSUAL IDEA TO ACTUALLY
ADD A SEAT FOR A WOMAN WE'RE NOT
TAKING A SEAT AWAY FROM ANYBODY.
WHO HAS BEEN THE HOPING TO BE IN
THAT BOARD SEE FOR LIFE AND AS
YOU ALL OF YOU KNOW A CORPORATE
BOARD SEATS ARE PAID POSITIONS
AND MANY TIMES OF THE PEOPLE IN
THOSE OF SEATS SO DO NOT WANT TO
GIVE UP THAT SEATS UNTIL THEY
ABSOLUTELY HAVE TO? RETIRE AND
THEY'VE BEEN ON THE CORPORATE
BOARD FOR THIRTY OR FORTY YEARS
SO WE'RE NOT GONNA EXTRICATED LE
OF A MAN OUT OF HIS SEAT WE'RE
GOING TO ADD A WOMAN TO THE
BOARD. AND.
BRING INTO THE PERSPECTIVE.
PAL THAT. IT MAY BE IMPORTANT
PERSPECTIVE WILL.
MOVE THE NEEDLE
LASTLY I WANTED TO SHARE AS
OWNER OF A RETAIN EXECUTIVE
SEARCH FIRM I KNOW HOW SEARCHES
WORK AND PROBABLY MANY OF YOU
HAVE BEEN.
IN IN SEARCHES IN THE IN THE
PAST BUT BOARD SEARCHES ARE
DIFFERENT FROM SENIOR LEVEL
POSITIONS SEARCHERS THERE ARE
NOT LISTS OF CANDIDATES THAT ARE
CONSIDERED AND THEY'RE CERTAINLY
NOT PUBLIC. SO THE NOMINATING
COMMITTEE OF A PUBLIC
CORPORATION A DECIDES AMONG
THEMSELVES WHO IS GOING TO BE ON
THE LIST OF PEOPLE THEY KNOW HIM
THEY FEEL COMFORTABLE WITH WHO
COULD BE ON THEIR BOARDS AND
THEY WOULD. MOST OF THEM HAVE
BEEN OPENED UNIVERSITY BUDDIES
OR GOLF COURSE BUDDIES ARE
FRIENDS SAY NO THROUGH BUSINESS.
AND THEIR IMMEDIATE CIRCLES
DON'T INCLUDE WOMEN SO THEY SAY
WE CAN'T FIND WOMEN WHO WILL FIT
INTO OUR ENVIRONMENT THERE FOR
THE WOMEN'S NAMES ARE NOT ON THE
LIST. AND THE BIG MYTH IS THAT
PEOPLE THINK THAT SEARCH FIRMS
REACH OUT AND FIND CANDIDATES
FOR BOARDS WE DON'T.
THEY COME THE CLUB COMPANY
CLIENTS THEMSELVES GIVE US THAT
LIST OF THEIR FRIENDS AND THEY
SAY VETS THOSE CANDIDATES. AND
THEY SAID THEY DON'T WANT
ADDITIONAL PEOPLE WHO ARE
STRANGERS MEN OR WOMEN SO IT'S
IMPORTANT THAT.
YOU ARE BUT WHERE IN OUR
AUDIENCE IS AWARE THAT. THERE IS
NOT A LONG LIST OF POTENTIAL
CANDIDATES AND THE LIST IN THE
INTERVIEWS ARE NEVER MADE
PUBLIC.
SO EVEN IF WE REQUIRE THAT OF
THE OF THE OF A WOMAN OR TWO
WOMEN OR A PERSON OF COLOR WOULD
BE INTERVIEWED WE WOULD NEVER
KNOW IF THAT PERSONAGES CHECK
THE BOX AND HAVE NO CHANCE. OF
GETTING ON THE BOARD OVER AND
ABOVE OF ALL THE PEOPLE THAT THE
BOARD RD FEELS COMFORTABLE WITH
SO THAT'S THEY THE IMPORTANT
POINT THAT I WANTED TO SHARE.
THAT IT'S NOT LIKE A REGULAR.
JOB SEARCH OR WHERE THERE ARE
PEOPLE COMPARED AGAINST ONE
ANOTHER WHEN THE SEARCHFIRMS
VET THE CANDIDATES WE COME BACK
WITH A REPORT TO THE CORPORATE
CLIENTS THAT SAYS. THIS PERSON
AS SERVER NEXT AMOUNT OF BOARDS
AND NEVER HAD A MAJOR PROBLEM OR
ACTUALLY DID AND.
THEN THAT THE NOMINATING
COMMITTEE CHOOSES THEIR FAVORED
OR MAYBE THEIR FAVORITE TOO BUT
THEY NEVER LET ANYONE KNOW THEY
DON'T WANT ONE WALL STREET TO
KNOW WHO MONTH WHO MIGHT BE
CONSIDERED FOR THE BOARD. AND
CERTAINLY ANYBODY WHO MIGHT BE
CONSIDERED WOULDN'T WANT THE
PUBLIC TO KNOW THAT THEY DIDN'T
MAKE IT SO THERE'S NEVER A LIST.
SO I I JUST WANT TO SHARE WITH
YOU HOW THAT PROCESS WORKS AND
IF WE WERE TO ADD A SEAT FOR A
WOMAN JUST IN THE STATE OF
CALIFORNIA.
EVEN KNOWING THAT THE THE
OPENINGS ARE VERY FEW LAST YEAR
FOR EXAMPLE OUT OF THE THIRTY
SEVEN HUNDRED DIRECTOR SEATS IN
THE STATE OF CALIFORNIA PUBLICLY
HELD COMPANIES. OF THREE HUNDRED
NINE NEW SEATS OR NEW DIRECTORS
WERE NAMED AND OUT OF THOSE
NINETY NINE WERE WOMEN. NOW
THOSE ARE JUST HEARD NATURAL
OPENINGS RETIREMENT OR DEATH
LOVE SOMEBODY WHO'S BEEN ON THE
BOTTLE HUG TIME. WE'RE NOT WE'RE
NOT REQUESTING THAT OF COURSE
NOBODY HAS TO DIE IN ORDER TO
GIVE US A SEAT BUT IF YOU ADDED
A SEAT.
ONE FOURTH OF THOSE COMPANIES DO
NOT HAVE ONE WOMAN SO IF YOU
ADDED A SEAT FOR A WOMAN
IMMEDIATELY IN THE YEAR TWO
THOUSAND NINETEEN. THERE WOULD
BE A THOUSAND MORE WOMEN ON A
CORPORATE BOARD SEATS IN
CALIFORNIA THANK YOU SENATOR. EX
WITNESSES INTRODUCED HELP.
THANK YOU SO MUCH AND THANK YOU
CHAIRMAN BRADFORD AND THE REST
OF THE COMMITTEE.
I AM THE IMMEDIATE PAST
PRESIDENT OF NOVEL CALIFORNIA
WHICH REPRESENTS THE TEN
CHAPTERS THROUGHOUT THE STATE OF
CALIFORNIA. AND I'M DELIGHTED TO
SHARE WHY I BELIEVE AS A WOMAN
OF COLOR S. B. EIGHT TWENTY SIX
IS SO IMPORTANT. ON INTEL
CRITICAL FOR SUCH A TIME AS THIS
AS A MOTHER OF TWO COLLEGE AGE
DAUGHTERS I DID INTERVIEW THEM
AND ASK THEM WHAT DO YOU THINK.
ABOUT WOMEN BEING ON CORPORATE
BOARDS IN AND.
WHAT DO YOU THINK AS A YOUNG
WOMAN OF COLOR ABOUT WOMEN BEING
ON CORPORATE BOARDS AND BEING
CONSIDERED? AND ONE OF THEM
SHARED WITH ME THE HISTORY AND
SHE TALKED ABOUT MOM AT ONE
POINT I IN OUR HISTORY THERE WAS
THE ANTI SLAVERY MOVEMENT. AND
THE WOMAN'S RIGHT MOVEMENT AND
WHEN THOSE TWO ISSUES CAME UP
THERE HAD TO BE A DECISION
SOMETHING HOUSE TO GO FIRST.
AND.
AT THAT TIME WHAT WENT FIRST
SINCE THE DISCUSSION ON THE ANTI
SLAVERY MOVEMENT. AND THEN THE
WOMAN'S RIGHT.
AND VOTING RIGHTS MOVEMENT CAME
AFTERWARDS AND AT THIS TIME AT
THIS SUCH A CRITICAL TIME WITH
ALL OF THE RESEARCH THAT'S
ALREADY BEEN EXPANDED. ABOUT THE
CRITICAL NEED FOR WOMEN ON
CORPORATE BOARDS AND WHY IT
MAKES BUSINESS SENSE. AS A
BUSINESS OWNER REPRESENTING
WOMEN BUSINESS OWNERS THROUGHOUT
THE STATE. CLEARLY ANOTHER
REGULATORY BURDEN IT'S NOT THE
OBJECTIVE.
BUT
A COMPELLING REASON.
TO LOOK AT THIS LEGISLATION.
FOR THE BUSINESS DECISION.
IS THE REASON WE'RE HERE TODAY.
AND NOVEL CALIFORNIA'S BEEN
WORKING ON THIS MATTER FOR A
NUMBER OF YEARS.
AND WE STARTED THE CONVERSATION
WITH SENATOR JACKSON.
ON THE COURAGE.
IN THE RESOLUTION.
AND IT DIDN'T WORK.
WE'RE BACK AGAIN.
TO SAY THE NUMBERS REMAIN
COMPELLING. THE BUSINESSES
SCISSION ES THERE.
PLEASE CONSIDER.
YOUR SUPPORT OF SB EIGHT TWENTY
SIX
FOR THE BUSINESS REASON INFER
THAT DIFFERENCE IT'LL MAKE FOR
OUR COMMUNITIES FOR THAT
DIFFERENCE IT'LL MAKE FOR
FAMILIES IN THE FUTURE.
WOMEN TEND TO BE COLLABORATIVE
THEY INVITE OTHER PEOPLE TO THE
TABLE THEY INVITE OTHER
CONVERSATIONS AND THE STUDIES
SHOW THAT WOMEN MAKE A
DIFFERENCE ON THE SPORTS THANK
YOU VERY MUCH FOR YOUR TIME.
MONEY.
ARE WE HAVE THE ARE. TO VIEW
PLANNING TO TESTIFY AS WELL I
WOULD ASK THAT YOU YOU KNOW.
HOW DOES BIEF IF POSSIBLE
BECAUSE WE HAVE A LOT OF FOLKS
LOOK AT I DON'T KNOW IF THIS
NEEDS TO BEYOND ITS ON? MY NAME
IS MELINDA WHOSE MIND AND VERY
HAPPY TO BE HERE I'M A TRUSTEE
EMERITUS TO THE CALIFORNIA STATE
UNIVERSITY SYSTEM THE CALIFORNIA
COMMUNITY COLLEGE SYSTEM.
I OVER THE PAST THIRTY YEARS I
HAVE SERVED ON NUMEROUS PUBLIC
PUBLICLY TRADED PRIVATE AND
NONPROFIT BOARDS I'M CURRENTLY.
A DIRECTOR FOR THE FEDERAL HOME
LOAN BANK WHICH I HAVE SERVED
FOR TEN YEARS ARTS OF THE
FEDERAL HOME LOAN
BANK I WOULD SAY THIS I SERVE
FOR THE FIRST SIX YEARS IS THE
ONLY WOMAN.
CRITICAL HOWEVER AT THE TIME WAS
THAT THERE ARE TWO VERY
IMPORTANT DIRECTORS ON THAT
BOARD WITH ME.
ONE IS SCOTT SCI FACTS AN
AFRICAN AMERICAN MALE.
AND THE OTHER IS FORMER SENATOR
KEVIN MURRAY.
MANY WOULD SAY THAT THE THREE OF
US ARE AFRICAN AMERICAN
DIRECTORS IN MANY RESPECT OR
THEY WOMEN. CRITICAL POINT I'M
MAKING IS ACTUALLY WE'RE ASKING
FOR ONE THREE IS THE CRITICAL
BALANCE IN MY OPINION BECAUSE
STUDIES ALSO SHOW. THAT A
CLUSTER OF THREE IS IMPORTANT.
WE DID FINALLY ELECT WE'RE ALL
INDEPENDENT DIRECTORS.
WE GET FINALLY ELECT ADDITIONAL
ON MEMBER DIRECTORS WHO ARE
WOMEN BUT LET ME LET ME
UNDERSCORE THE FOLLOWING.
THE IMPORTANCE HAVE HAVE BEEN
DIVERSE VOICES AND IN THIS
INSTANCE GENDER IS CRITICAL.
WE HAVE BEEN SUCCESSFUL IN
IMPLEMENTING POLICIES THAT
AFFECT CALIFORNIA IN A POSITIVE
WAY.
FOR EXAMPLE THE CREATION OF
SUPPLIER DIVERSITY PROGRAMS THE
CREATION OF WORK FORCE DIVERSITY
ISSUES AND THE CREATION OF A ONE
HUNDRED MILLION DOLLAR QUALITY
JOB AND.
MY UNDERSCORE FOR YOUR
CONSIDERATION THIS BILL BUT I
ALSO UNDERSCORE TO THE WOMEN IN
THIS ROOM AND NOT THOUGH I
APPLIED YOUR WORK BUT THE
DIALOGUE CAN NOT STOP WITH THIS
BILL. BECAUSE IS ABSOLUTELY
CRITICAL. THAT THE DIVERSITY ON
THESE CORPORATE BOARDS INCLUDE
BOB ALL ASPECTS OF DIVERSITY I
SEE THIS BILL AS ONE IMPORTANT
STEP. TO PERHAPS.
PAVED THE WAY FOR THAT
ADDITIONAL CRITICAL DIVERSITY AS
WE DO ON THE FEDERAL HOME LOAN
BANK BECAUSE THOSE VOICES ARE
CRITICAL TO CALIFORNIA'S
ECONOMIC FUTURE. THANK YOU. YOU.
I'M CITY ON MILLION AND I'LL
JUST MAKE A COUPLE OF ADDITIONAL
POINTS THAT WERE COVERED AYE
AND.
I ONCE CALIFORNIA SCHOOLS FROM
KINDERGARTEN THROUGH AYE UC
HASTINGS LAW SCHOOL AND WORKED
FOR THE BIGGEST LAW FIRMS IN THE
WORLD IS AN INVESTMENT BANKER
AND I CO FOUNDED A HEDGE FUND
THAT SPECIALIZES IN INVESTING IN
SMALL CAP STOCKS.
AND JUST TO BRING UP THE POINT
FROM AN INVESTOR'S POINT OF
VIEW.
BETSY DID MENTION HOW SOME OF
THE LARGE INSTITUTIONAL
INVESTORS HAVE GONE OUT THERE
VERY RECENTLY AND SAID. THIS IS
A BUSINESS ISSUE THIS REALLY
NEEDS TO CHANGE I'M I WANT TO
POINT OUT THE UNIQUE SPHERE OF
SMALL CAP STOCKS SPECIFICALLY
RUSSELL TWO THOUSAND COMPANIES
WHERE WOMEN ARE.
NOT WELL REPRESENTED AT ALL AND
YOU DON'T HAVE CALPERS AND CAL
STORIES IN BLACKROCK THEY DON'T
INVEST IN THOSE COMPANIES
BECAUSE THEY'RE TOO SMALL.
NOTWITHSTANDING NOT THESE ARE
INCREDIBLY IMPORTANT AND SINS OF
EMPLOYMENT AND GROWTH AND I
RETURN FOR INVESTORS IN
CALIFORNIA. AND I'VE CURRENTLY
SIT ON THE BOARD OF A.
NASDAQ TRADED THE CLEAN TECH
PUBLICLY TRADED COMPANY I AM THE
ONLY WOMAN ON THE BOARD AND THE
SEAT THAT I OBTAINED WAS WHEN
THEY ACTUALLY ADDED ANOTHER EAT.
SO AS AN INVESTOR IN THESE
COMPANIES I PAY VERY CLOSE
ATTENTION TO BOARD COMPOSITION
BECAUSE THAT IS GOING TO A FACT
HOW WELL THE COMPANY DOES IN THE
FUTURE. AND THESE COMPANIES THE
BOARD DID YOU NOT TURN OVER AND
NOBODY BENEFITS FROM A NON
DIVERSE.
ENTRENCHED
BOARD OF DIRECTORS SO ADDING A
WOMAN SEE I CAN'T THINK OF A
BETTER WAY TO AYE NO LOSE
PROPOSITION NOBODY'S GONNA LOSE
ON THIS ONE YOU'RE GONNA ADD
ANOTHER TALENTED I CAN YOU KNOW
WOMEN ARE UNDER UTILIZED
RESOURCE IN THE STATE. AND I
THINK THIS IS A NO LOSE SOLUTION
TO. HELP SO THESE COMPANIES MAKE
YOU. THINK YOU ARE I SEE WE HAVE
A LINE HERE SO IF YOU JUST
APPROACH TO MICROPHONES TEACHER
NAMED ORGANIZATION HAS.
QUICK AS POSSIBLE I THINK YOU
FOR YOUR PATIENCE NEITHER THANK
YOU MY NAME IS MADELINE ALFANO
ON THE ON OF WORRIES ITALIAN
KITCHENS OF. LIVING CASUAL
RESTAURANTS IN LOS ANGELES AND
FOUR HUNDRED FIFTY EMPLOYEES OF
THE PROUD PARENT OF A WEST POINT
GRAD IS NO LIEUTENANT. IN OUR
MILITARY AND HE'S IN FAVOR OF
THIS SO CALLED IN THIS MORNING
AS AS WELL AS I AM I. AND ONE OF
THE THINGS I JUST RECENTLY
LEARNED IS THAT THERE'S
SOMETHING CALLED THE GLASS
CEILING. WHERE I EMPLOYEES RATE
CEOS AND I'VE FIVE SO I'M READY
FOR A SEAT AT THE TABLE THANK
YOU VERY MUCH?
HI MY NAME IS JENNIFER MANUAL I
AM THE PRESIDENT ELECT FOR NOT A
SACRAMENTO VALLEY AND THE OWNER
VIA CONSULTING GROUP WEAR BATIK.
GENDER PARITY IN LEADERSHIP
CONSULTANCY AND WE ARE IN
SUPPORT OF THIS WE THANK YOU FOR
YOUR CONSIDERATION THANK YOU.
HELLO MY NAME IS ANGELA TO
PAULINE I'M THE OWNER VARGAS
ENVIRONMENTAL CONSULTING AND I'M
HERE IN SUPPORT OF THE SPELL.
VERY.
HELLO I'M SHANE CREA FERNANDEZ
I'M THE PRESIDENT OF SACRAMENTO
WOMEN ACHIEVING GREATNESS AND
ALSO BUSINESS OWNER OF A
FINANCIAL SERVICES FIRM. WE
SUPPORT THIS BILL.
HELLO MY NAME IS ERICA DS I'M A
PIPES PRESIDENT AT AMERICAN
RIVER BANK A PUBLICLY TRADED
COMPANY AND AN MBA AND I'D LIKE
TO ASK YOU FOR YOUR SUPPORT OF
THIS BILL.
THANK YOU.
HELLO MY NAME IS CHERYL MAYBE
AND I AM A GRADUATE OF PARSONS
SCHOOL OF DESIGN IN NEW YORK AND
I'M THE FOUNDER OF CHANGE AGENT
MEDIA. A MEDIA COMPANY DESIGNED
TO MAKE THE WORLD A BETTER MORE
POSITIVE PLACE AND I FIRMLY
SUPPORT THIS BILL AND INVITE THE
COMMITTEE TO DO SO ALSO THANK
YOU. FOR.
HI I'M MARY DATHAN I'M A LOCAL
BUSINESS OWNER MARY CATHERINE
PRODUCTIONS AND I'M IN SUPPORT
OF THIS BILL AND I HOPE THAT THE
COMMITTEE IS AS WELL THANK YOU.
HI CHAIRMAN BRADFORD ON THE
COMMITTEE MY NAME'S AMY BERNARD
BONNET I'M THE PRINCIPLE OF
WERNER VON CONSULTING AND
COACHING. I'VE SERVED ON THE
EXECUTIVE TEAMS OF MANY FORTUNE
TWENTY COMPANIES AND GOT MY LAW
DEGREE AT GEORGETOWN UNIVERSITY
AND I AM BORED READY SO. I
REALLY HOPE YOU SUPPORT THIS
BILL. THINK YOU'RE.
MY NAME IS KATIE MAPLE ON BEHALF
OF THE WOMEN AND GIRLS
ADVANCEMENT COALITION SACRAMENTO
IN SUPPORT THINKING.
HELLO I'M MAUREEN LANE AND A
MOTIVE OUR OUR STRATEGIES AND
I'M ON THE BOARD OF DIRECTORS
FOR THE.
SACRAMENTO CHAPTER OF THE
NATIONAL ASSOCIATION OF WOMEN
BUSINESS OWNERS AND I AM IN
SUPPORT OF THIS BILL.
MISTER CHAIRMAN MEMBERS RAND
MARTIN ON BEHALF OF CMG KHALIFA
WHICH IS ONE OF THE LARGEST
CANNABIS OPERATIONS IN THE STATE
OF CALIFORNIA WITH VERY LATE
SUPPORT ON THIS IMPORTANT BILL
THANK YOU.
MISTER CHAIRMAN MEMBERS MY NAME
IS CHRISTINA ROSE AND I AM
PRESIDENT AND CEO OF ROSE POLICY
SOLUTIONS.
I'M A BUSINESS DOES NOT CARE FOR
MANDATES I HAVE BEEN A SMALL
BUSINESS OWNER NOW FOR THIRTY
YEARS BUT I WILL SAY I TRULY
BELIEVE THIS IS ONE THAT WE ARE
GOING TO LOOK BACK ON. AND SAY
WHAT TOOK US SO LONG I HAVE SAID
AND TO CORPORATE BOARDS. AND
WOMEN DO MAKE A DIFFERENCE.
GOOD AFTERNOON I'M GALLAGHER AIR
FROM LOS ANGELES AND I DAM IN
THE COMMUNITY AND GOVERNMENT.
TRENCHES FOR A LONG TIME I WOULD
LIKE TO YOU TO URGE THEM OF THIS
FOR THIS BILL FORWARD I KNOW
THAT RESEARCH IS A SADISTIC IT
COULD TAKE ABSENT GOOD ACTION.
THAT COULD TAKE FORTY OR FIFTY
YEARS FOR WOMEN TO REACH PARITY
ON BOARDS AND I DON'T WANT TO
WAIT TILL MY LITTLE GREAT
GRANDDAUGHTER. IS READY SO HOPE
YOU WILL MOVE THIS BILL THANK
YOU MISTER FOR BEING HERE.
HOW THAT MOTORCYCLE?
NNAMDI. GOOD AFTERNOON MY NAME
IS TERRY BAYER AND I'M A PROUD
GRADUATE OF THE UNIVERSITY OF
CALIFORNIA BERKELEY SCHOOL OF
PUBLIC HEALTH. AND THE STANFORD
LAW SCHOOL I AM FORTUNATELY ONE
OF THE WOMEN WHO HOLDS A
DIRECTOR SEAT OF A PUBLIC
COMPANY CUP PUBLIC COMPANY
HEADQUARTERED IN CALIFORNIA AND
I'M VERY PROUD OF THAT. BUT I
WANT TO EMPHASIZE WHAT BITS
BETSY SAID EARLIER.
GETTING THE FIRST BOARD SEAT IS
THE CHALLENGE AND WE NEED THE
SUPPORT OF THE SPELL THERE ARE
MANY COMPETENT WOMEN.
OUR BOARD.
IT DOES HAVE A DIVERSE ATTITUDE
AND HAS WOMEN ON IT BUT WE NEED
THAT NO STOP AND WE WOULD
CERTAINLY WELCOME THAT COMING
FROM THE SPELL THANK YOU FOR
YOUR SUPPORT.
THANK YOU. ANY ADDITIONAL
WITNESSES IN SUPPORT.
WITNESSES IN OPPOSITION PLEASE
COME FOR.
AND IF THE LIGHTS AND WE'RE
GOING TO ASK.
THE LADIES TO MAKE SPACE FOR
OUR WITNESSES IN OPPOSITION.
MR BARRERA THANK YOU.
NO NO IT'S ONCE AGAIN.
SO IT'S ON THERE THAT SAY.
I CAN HEAR AYE GOOD AFTERNOON
MISTER CHAIR AND MEMBERS OF THE
COMMITTEE JENNIFER FOR ON BEHALF
THE CALIFORNIA CHAMBER OF
COMMERCE AND WE ARE OPPOSED TO
THIS PROPOSAL.
I FIND THAT I ACTUALLY AGREE
WITH MOST OF THE THINGS THAT ALL
OF THAT PROPONENTS SAID.
WE AGREE WITH DIVERSITY WE
AGREE WITH THE FACT THAT I'M
HAVING A MORE DIVERSE BOARD OF
DIRECTORS IS ACTUALLY A GOOD
THING FOR COMPANIES AND AS IF
YOU CAN HEAR. THERE ARE ALREADY
ACTIONS TAKING PLACE WITH
REGARDS TO THESE COMPANIES TO
INCREASE DIVERSITY ACROSS THE
BOARD ACROSS THE BOARD. I'M WE
ARE COULD INCREASING DIVERSITY
IN ALL AREAS AND GENDER IS JUST
ONE OF THEM AND ALL OF THESE.
PUBLICLY TRADED CORPORATIONS
ARE RECOGNIZING THE FACT THAT
DIVERSITY IS IMPORTANT HOWEVER
WITH REGARDS TO THIS PROPOSAL
YOU ARE CHOOSING. ONE AREA
DIVERSITY AS OPPOSED TO ALL
OTHERS YOUR SCENE THAT GENDER IS
BY FAR THE MOST IMPORTANT PIECE
OF DIVERSITY OPPOSED TO OTHER.
PROTECTED CLASSIFICATIONS WHO
ALSO PROBABLY DESERVE NOT EVEN
PROBABLY DESERVE A SEAT AT THE
BOARD AS WELL WE HAVE HUGE
CONCERN WITHOUT BECAUSE AGAIN
OUR COMPANIES ARE ENGAGING IN
DIVERSITY PRACTICES.
IN ALL AREAS NOT JUST ON GENDER
AND I DO.
RESPECTFULLY DISAGREE THAT WE
WOULDN'T HAVE TO DISPLAY
SOMEBODY THE BOARD ARE THE
PROPOSAL SAYS THAT BY TWENTY
NINETEEN WE HAVE TO ADD A SEAT.
ARE ONE WOMAN ON THE BOARD OF
DIRECTORS AND THEN TWENTY TWENTY
ONE GETS INTO A VARIATION OF HOW
MANY BUT.
MEMBERS OR BOARD OF DIRECTORS
YOU HAVE ON THE BOARD I MEAN HOW
MANY SEATS YOU HAVE TO HAVE BUT
IF YOUR SHAREHOLDERS BECAUSE THE
SHAREHOLDERS THAT DICTATE
WHETHER OR NOT YOU HAVE A MORE
PORTS SEATS IF YOUR SHAREHOLDERS
DO NOT APPROVE OF ADDITIONAL
SEATS AND YOU HAVE TO MEET. THIS
QUARTER YOU DO HAVE TO DISPLAY
SOMEBODY AND YOU'RE DISPLACING
THEM SOLELY ON THE BASIS OF
GENDER. WE HAVE ARGUED US CIVIL
RIGHTS CODE THAT SAYS IN
BUSINESSES CANNOT MAKE ANY
DECISION BASED UPON GENDER WE
HAVE OUR CONSTITUTION THAT SAYS
YOU CANNOT DEFY ANYBODY A
VOCATION PROFESSION OR BUSINESS.
BASED UPON GENDER WE ALSO HAVE
THE EQUAL PROTECTION LAW THAT
SAYS EVERYBODY SHALL BE TREATED
UNDER THE LAWS EQUALLY I'M NOT
SPECIFICALLY BASED UPON GENDER
AND SO YOU RUN INTO A WHOLE
BUNCH OF CONSTITUTIONAL
CHALLENGES AND CIVIL RIGHTS
VIOLATIONS WHEN COMPANIES MAKE
DECISIONS SPECIFICALLY ON A
PROTECTED CLASSIFICATION. SUCH
AS GENDER AS THIS BILL REQUIRES
THESE COMPANIES TO DO.
THE OTHER PROBLEM WE HAVE WITH
THIS BILL IS THAT IT.
VIOLATES THE INTERNAL AFFAIRS
DOCTRINE FOR CORPORATE LAW.
THE INTERNAL AFFAIRS DOCTRINE
SAYS THAT THE.
STATE WHERE THE.
CORPORATION IS INCORPORATED
WILL ACTUALLY DICTATE THE
INTERNAL AFFAIRS OF THAT
CORPORATION INCLUDING HOW THEIR
BOARD OF DIRECTORS ARE DECIDED.
IF THIS BILL DOES NOT TALK ABOUT
COMPANIES THAT ARE INCORPORATING
CALIFORNIA IT JUST SAYS IF YOUR
PRINCIPAL OFFICES ARE LOCATED
HERE IN CALIFORNIA WHICH MEANS
YOU'RE INCORPORATED ANOTHER
STATE.
THAT STATE DICTATES HOW THAT
CORPORATION IS GOING TO
DETERMINE THEIR BOARD OF
DIRECTORS NOT CALIFORNIA AND SO
IF YOU HAVE THIS MANDATE IN
CALIFORNIA SAYING WE HAVE TO
MEET THIS QUOTA. AND YOU HAVE A
STEEP WHERE THEY'RE INCORPORATED
SEEN SOMETHING ENTIRELY
DIFFERENT WHAT IS THE
CORPORATION SUPPOSED TO DO. AND
IF THE CORPORATIONS SHAREHOLDERS
AGAIN WILL NOT APPROVE
ADDITIONAL SEATS AND WILL NOT
APPROVE THESE FEMALE DIRECTORS
TO BE PLACED ON THIS BOARD YOU
PUT THIS CORPORATION AND A HUGE
LITIGATION. NIGHTMARE WITH
REGARDS TO ITS SHAREHOLDERS AND
HOW IT.
CONDUCTS ITS INTERNAL AFFAIRS
THAT WE HAVE A PROBLEM WITH THAT
AS WELL AGAIN WE ARE COMPLETELY
FOR DIVERSITY IN THE BOARD IN
OUR COMPANIES ARE ENGAGING IN IN
THAT BUT YOU PUT. COMPANIES IN A
VERY PROBLEMATIC SITUATION WHEN
YOU CHOOSE ONE BUT THE
CONSTITUTION OR LAWS ALL SEE
THAT WE CAN CONSIDER WHEN WE'RE
DOING THIS THE OTHER POINT I
WANT TO MAKE. IS IT'S AN
INCONSISTENT POLICY SOMEWHAT
FROM.
SOME OF THE PROPOSALS THAT WE
SINGLE THROUGH THIS LEGISLATURE
WITH REGARDS TO GENDER LAST YEAR
THERE WAS A BILL THAT SAYS
GENDER IS A VERY FLUID PROCESS.
AND SOMETIMES SOMEBODY ME
IDENTIFIES A FEMALE ONE DAY A
MALE ANOTHER DAY NEITHER ON ONE
DAY OR BOTH
HOW IS THE BOARD OF DIRECTORS
SUPPOSED TO DETERMINE AT THAT
POINT WHEN THEY'RE HIRING TO
MEET THIS QUOTAS. IF THE
INDIVIDUAL IS IDENTIFYING AS A
FEMALE THAT DAY.
A MALE THAT DATE. NEITHER OR
BOTH AND HOW ARE WE SUPPOSED TO
DO THAT IF THAT TRANSITIONS IN
CHANGES BECAUSE SALUTE BECAUSE
SEX IS A FLUID IDENTITY ISSUE
THERE'S ALSO REGULATIONS THAT
CAME OUT FROM OUR DEPARTMENT OF
FAIR EMPLOYMENT AND HOUSING.
THAT SAID THE SAME THING THAT
SETS COMPANIES IN CALIFORNIA CAN
ASK ABOUT YOUR GENDER AND THEY
CAN'T MAKES MAKE PRESUMPTIONS ON
YOUR APPEARANCE OF WHAT YOUR
GENDER IS. SO AGAIN IT PUTS
EMPLOYERS ARE COMPANIES IN A
VERY DIFFICULT POSITION TO
SATISFY THIS MANDATE. WITHOUT
BEING ABLE TO ASK VERIFY OR EVEN
DETERMINE WHAT SOMEBODY'S GENDER
IS TO DETERMINE WHETHER OR NOT
THEY'VE SATISFIED THOSE
CONDITIONS PERMIT SO FOR ALL OF
THOSE REASONS WE DO HAVE BEEN
ALL OR RISK FACING.
ACTUALLY MILLIONS OF DOLLARS IN
PENALTIES AND FOR.
GREAT THANK YOU.
CHAIR MEMBERS TRUST BUCKLEY WITH
THE PERSONAL INSURANCE
FEDERATION OPPOSE THE MEASURE
THANK YOU.
IN ADDITION WITNESSES SEEN NINE
BRING IT BACK TO COMMITTEE.
ANY QUESTIONS THE COMMITTEE.
A QUESTION ACCOUNT.
SENATOR GAINES.
THE FARM.
MAYBE CENTER JACKSON THANK YOU
FOR BRINGING THIS FORWARD IF.
CAN YOU ANSWER. MY CONCERNS WERE
ADDRESSED BY THE OPPOSITION IN
TERMS OF THAT WELL I'D RATHER
NOT EVEN TRY IT CONSIDER THE
IDENTIFYING ONE DAY IS ONE
GENDER AND I I FRANKLY FIND THAT
INSULTING A. DISAPPOINTED IN
THAT IS AN ARGUMENT.
.
SO.
.
I I I WILL ADDRESS THE ONES
THAT.
POINT INSULTING I JUST THINK OF
PERHAPS.
.
BEING CORRECT THE. THE
CONSTITUTIONAL ISSUES WILL BE
FULLY COVERED IN THE JUDICIARY
COMMITTEE INTO.
UPON THE INITIAL PRESENTATION
OF THIS BILL WORKING WITH NOVEL.
OF THE ADDITION OF A MEMBER TO A
BOARD I DO NOT BELIEVE.
BUT WE WILL COVER IT FURTHER
ADDRESSES ANY CONSTITUTIONAL
CONCERNS UNDER PROP TWO ONE NINE
OR ANY OF THE OTHER. SIDE DUE
PROCESS AND EQUAL PROTECTION.
OPPOSITION SO THAT IS SOMETHING
WE PLANNED TO LOOK AT DATA IN
THE JUDICIARY COMMITTEE WHERE IT
IS PROPERLY WITHIN THE
JURISDICTION OF THE COMMITTEE.
THE INCREASING DIVERSITY.
FIND THAT A LITTLE DISINGENUOUS.
.
IF WE WERE TO EXPAND THIS TO
INCLUDE.
ALL GROUPS AND I AM NOT SURE
START WITH GENDER AS WAS
SUGGESTED AND IN FACT
HISTORICALLY. IT ONCE WE MOVE
FORWARD WITH A ONE OF A GROUP
AND THAT TENDS TO OPEN.
THE OPPORTUNITIES FOR OTHERS
IT'S THAT FIRST STEP YOU HAVE TO
BASICALLY DECIDE THAT BUT I HAVE
A VERY LITTLE CONFIDENCE THAT
THE CHAMBER WOULD COME IN WERE
WE TO SAY. THAT YOU HAVE TO ADD.
ONE PERSON BASED ON GENDER AND
ANOTHER BASED ON ETHNICITY AND
RACE ITSELF FOR THE DAY WOULD
COME IN AND BE SUPPORT OF THE
BILL SO I THINK THEY'RE GOING TO
OPPOSE THE BILL. ANYWAY OF
REGARDLESS OF WHETHER A WE FOCUS
ON GENDER ISSUES WHICH IS
FAIRLY.
IS I I SHOULD SAY IS NOT UNIQUE.
WHEN I DID MICHAEL PAY BILL
BACK IN TWENTY OF FIFTEEN WE
FOCUSED ON GENDER.
I AND TO.
WERE ABLE TO GET THAT BILL
PASSED AND THE FOLLOWING YEAR.
THAT CONCEPT WAS AN EXPANDED
EXPANDED TO INCLUDE ALL GROUPS
SO THAT WE CANNOT HAVE PAID
DISPARITIES BASED UPON GENDER OR
RACE OR ETHNICITY OR NATIONAL
ORIGIN.
IT WAS THAT FIRST STEP WHICH
WAS MENTIONED HISTORICALLY IS
THAT YOU'VE GOT TO TAKE THAT
FIRST STEP AND.
WHETHER YOU ARE.
PROVIDE.
OF FOR GENDER OR.
ETHNICITY OR RACE.
WE ARE WE ARE TRYING TO BREAK
THROUGH THAT CEILING THAT THAT.
LIMITATION WE TRY TO DO IT IN
TWENTY THIRTEEN.
WHEN WE TALKED ABOUT URGING
COMPANIES TO DO WHAT TO WHAT
THEY SHOULD BE DOING.
THAT PERCHING DIDN'T DIDN'T GET
US ANYWHERE AND THAT'S WHY WE'RE
BACK HERE WITH THIS MEASURE SO.
THE CONSTITUTIONAL ISSUE THE
SHAREHOLDERS ARE HAVING TO
AGREE.
IF YOU PRESENT SHAREHOLDERS
WITH THE NOTION THAT A COMPANY'S
GONNA MAKE MORE PROFIT IF YOU
EXPAND OF THE GENDER DIVERSITY
OF ITS BOARD. I DON'T THINK
PEOPLE GOING TO SAY NO WE DON'T
WANT TO HAVE GREATER PROFITS BY
EXPANDING THE.
DIVERSITY OF OUR BOARD WE'D
LIKE TO KEEP IT JUST THE WAY IT
IS WITH ALL MEN RUNNING THE
SHOW.
AND MAKE LESS MONEY
SO I SUBMIT THAT IF THAT IS SURE
TO BE PRESENTED TO A.
TO SHAREHOLDERS THIRD GOAL IS
TO MAKE MONEY.
AND IF THEY CAN MAKE MORE MONEY
AND THE DATA CLEARLY SHOWS THAT
COMPANIES TO DO.
BRING WOMEN ONTO THEIR BOARDS
TO MAKE MORE MONEY THAT'S WHY
THERE'S A COUNTRIES HAVE
REQUIRED MORE WOMEN ON THEIR
BOARDS.
YES WE'RE MAKING SOME STRIDES
BUT IF WE WAIT IT'S GOING TO BE
ANOTHER FORTY OR FIFTY YEARS AND
A LOT OF BUSINESSES ARE GOING TO
LOSE OUT ON OPPORTUNITIES AND A
LOT OF TREMENDOUSLY QUALIFIED
AND TALENTED PEOPLE. ARE GOING
TO LOSE OUT ON THE OPPORTUNITY
TO SERVE ON BOARDS BECAUSE OF
THEIR PHYSIOLOGY AND THAT'S
WRONG AND WE SHOULDN'T GO THERE
AND THAT'S WHY WE'RE DOING THIS
BILL. AND THEN THE INTERNAL
AFFAIRS DOCTRINE THAT'S A NEW
ONE ON ME BUT GOOD GOVERNANCE IS
GOOD GOVERNANCE IN ANY STATE IN
THIS COUNTRY AND IF IT'S
DETERMINED TO BE GOOD
GOVERNANCE.
TO ADD WOMEN TO A BOARD.
OR TO EXPAND BOARD SO THAT YOU
CAN ADD WOMEN.
TRY HAVE VERY LITTLE DOUBT THAT
THAT'S GOING TO BE OBJECTED TO A
IN ANY STATE REGARDLESS OF WHERE
STATUS INCORPORATED SO.
I I YOU KNOW THAT.
I ALWAYS APPRECIATE HEARING FROM
IS POOR BUT IN THIS IN THIS
SITUATION RIGHT ARE YOU HAVE TO
RESPECTFULLY. DISAGREE WITH
THOSE SUGGESTIONS AND WITHOUT.
I'D LIKE TO JUST SIMPLY ASK FOR
YOUR LIFE THANK YOU. SOON
REPORT.
YES SOME.
I'VE.
LIKE TO COMPLEMENT THE AUTHOR
FOR BRINGING THIS FORWARD AS THE
FATHER OF TWO DAUGHTERS IN THE
SPOUSE OF A.
CORPORATE EXECUTIVE WHO'S MUCH
SMARTER THAN I AM.
HERE VERY SMART TO SAY THAT YOU
KNOW THAT.
AND AND IT'S AT
TRUE.
I I AM A.
PLEASE WITH THIS I KNOW YOU IN
THE CHAIR WORK DISCUSSING.
WAYS TO BROADEN IT AND MAKE YOU
KNOW. DISCUSS.
STRATEGIES FOR EVEN MORE
INCLUSIVE WORDS DOWN THE ROAD
I'VE CERTAINLY WILL SUPPORT
THOSE EFFORTS.
AND ENCOURAGE THAT CONVERSATION
TO CONTINUE.
BUT THIS IS WHAT'S BEFORE US
TODAY IN. AS THE FATHER OF
BALANCE SOPHIE I'M PROUD TO MOVE
THE BILL.
THANK YOU.
THE QUESTIONS COMMITTEES. QUOTE
ON SOONER JACKSON I WANT TO
THANK YOU FOR THIS MEASURE AND
AS YOU KNOW I.
YOU KNOW WHERE I STAND ON THIS
ISSUE AS IT RELATES TO GENDER
DIVERSITY AS WELL AS RECENT
RACIAL DIVERSITY I SIT ON THE
SELECT COMMITTEE ON IMPLICIT
BIAS.
TOWARD WOMEN. AND I HAVE BEEN A
STRONG ADVOCATE ON DIVERSE STEEL
ON ALL LEVELS THERE'S NO DOUBT
THAT THERE'S IMPLICIT BIAS BASED
ON GENDER. AN ON RATES AND I'VE
SAID ON MANY BOARDS AND BE
ELECTED OR POINT WHERE I WAS
ONLY PERSON COLOR IN THE ROOM
SHOW. THAT IS OF GREAT
IMPORTANCE TO ME AS WELL AND I
AM CONCERNED THAT. IF WE CHOOSE
GENDER.
SPECIFICALLY IT WILL LIMIT.
THE APPOINTMENTS.
.
MEN OF COLOR AND WE'VE SEEN THAT
I'VE BEEN A BIG PROPONENT. AS
UTILITY CHEER CAN ORDER ONE
FIFTY SIX THAT ENCOURAGES
CONTRACTING PROCUREMENT WILL
WOMAN ALL MINORITY OWNED.
DISABLED VETERAN OWNED
BUSINESSES AND WE'VE SEEN A
TIDAL WAVE OF SHIFT WORK A
COMPANY CHANGES OWNERSHIP FROM A
MAN TO WOMAN JUST TO QUALIFY FOR
GEO ONE FIFTY SIX QUALIFICATIONS
SO. WEEKS WE'VE SEEN WHERE IT
HAS HEARD INDIVIDUALS BUT AGAIN
THIS IS A MEASURE THAT'S
IMPORTANT.
WE'VE DISCUSSED MY CONCERNS
HERE.
I'VE SUGGESTED TO ROONEY.
AMENDMENT THAT.
HOW? MY AUDITING DID NOT.
ONE EXCEPT AND I RESPECT THAT I
I I REALLY DO.
AND I AM COMMITTED TO CONTINUE
TO HAVE DIALOGUE AND MAKING SURE
THAT.
.
NOT ONLY CORPORATE BOARDS
BECAUSE AGAIN I HELD A HEARING.
A NUMBER OF YEARS AGO.
REGARDING THE LACK OF DIVERSITY
IN SILICON VALLEY.
AND IT'S. MINORITIES ARE ALMOST
NONEXISTENT ON ANY OF THOSE
CORPORATE BOARDS ALL CALIFORNIA
BASED COMPANIES I THINK ONLY TO.
HEAD UP PEOPLE OF COLOR ON IT
SHOW ON THIS IS A IMPORTANT
ISSUE SPECIAL IN THIS TIME WHERE
WE FIND OURSELVES.
IN THIS COUNTRY WERE GENDER AND
RACE AS.
COME INTO PLAY MORE MORE
EVERYDAY SO AGAIN I TO ME A MAN
COMMAND.
AUTHOR AND ALL THE WOMEN WHO'VE
COME HERE TODAY TO TESTIFY ON
THIS.
ISSUE THE ISSUE OF GREAT
IMPORTANCE SO WE'RE GOING TO
HAVE A TO PASS TO THE JUDICIAL
NAM. MADAM LE AS SENATOR WOULD
YOU LIKE TO CLOSE VERGE OF I
APPRECIATE THAT AND I'M
COMMITTED TO WORKING TOWARDS.
OPENING UP THE STATE TO
EVERYBODY HE KNOW.
.
PEOPLE REALLY SHOULD BE JUDGED
ON THE CONTENT OF THEIR
CHARACTER AND THAT'S A
COMMITMENT I'VE HAD THROUGHOUT
MY LIFE AND I WILL CONTINUE
DOING THAT. I APPRECIATE YOUR
CONCERNS REALLY BELIEVE THIS IS
A GOOD START. AND DIE ONCE WE
GET THERE.
WE WILL OPEN UP THE WORLD FOR
EVERY GREAT PERSON TO HAVE THE
OPPORTUNITY TO LIVE THE GREAT
AMERICAN DREAM.
WITH THAT I'D ASTRAEA LIVE OFF
THE FORGET ABOUT THE BROTHERS.
ARE.
ALRIGHT. WE HAVE A DO PASS
AMENDMENT TO JUDICIARY.
SECRETARY PLEASE CALL THE ROLL.
MOTION IS DO PASS WITH
AMENDMENTS TO BE TAKE. NOTABLE
MOMENTS TO POWER PASSED THE
JUDICIARY TO PASS TO JUDICIARY.
SENATOR BRADFORD AYE AYE. FOR
AYE FIGHT ACT. BUT NO.
GAINES.
GALGIANI. GALGIANI I WESO. LARA
PORTANTINO AYE PORTANTINO AYE.
WE HAVE THREE VOTES WILL PUT
THAT ON CALL FOR THE ABSENT
MEMBERS THANK YOU SENATOR
JACKSON FOR YOUR THANK YOU
MISTER CHAIRMAN MEMBERS AND
THANK YOU ALL THE WITNESSES ARE
HERE TODAY. HA NEXT UP IS SOONER
HERTZBERG WE HAVE.
ITEM TO S. B. EIGHT THREE EIGHT.
HELLO.
GET ON
.
THE CONNECTS WITH YOU ON THIS
AND.
FOUR EIGHT THREE EIGHT. ALLEGE
OCEAN THE REVERSE FIRST OF A
POT.
WE TWO RIVERS FIRST OKAY OKAY
IMPROVE YOUR YOU YOU WANT TO DO
NINE THIRTY.
OKAY. WE'RE GOOD ITEM THREE.
S. B. NINE THIRTY.
YOU.
HERE WE ARE WITH.
COVERAGE OF. THE.
BOB.
THANK YOU. MISTER CHAIRMAN AND.
MEMBERS.
ARE.
YOU KNOW.
THE STATE LAST YEAR ON A FIFTY
SEVEN PERCENT VOTE APPROVER THE
PEOPLE. PASSER IN PROPOSITION
SIXTY FOUR WHICH LEGALIZE
CANNABIS WE SAW EARLIER BUT
PROPOSITION. A PROPOSITIONS ARE
WITH MEDICAL MARIJUANA BUT THIS
THIS PROPOSITION THAT WAS PASSED
LAST YEAR.
PARDON PUT ASIDE ON SHOULD THE
FEDERAL GOVERNMENT.
INTO IS THE STATE OF CALIFORNIA
ENGAGES IN ITS RESPONSIBILITIES
IN THAT THE VOTERS THE WILL OF
THE PEOPLE IS LEGISLATURE. THAT
PASSED A SIMILAR LEGISLATION
WITH SENATOR MCGUIRE AND OTHERS
IN THE OTHER HOUSE.
BUT. BE WE FACE SOME CHALLENGES
BECAUSE.
HARM THE BOOM I WELL MARIJUANA
FOR RECREATIONAL PURPOSES LEGAL.
ARMED IN CALIFORNIA IT'S
CONSIDERED ILLEGAL FOR PURPOSES
OF FEDERAL LAW.
AND BASICALLY BROADLY SPEAKING
WITHOUT SPECIFIC REFERENCES TO
THE FEDERAL STATUTES
IF IT'S ILLEGAL THEN YOU CAN'T
USE THE BANKING SYSTEM.
SO WHAT DO YOU DO.
WE HEARD FROM SENATOR MCGUIRE
THAT SOME DAYS AGO THAT.
THIS* IS GOING TO BE THE
LARGEST AGRICULTURAL CROP IN
CALIFORNIA ESTIMATES SMALL LOW
ESTIMATES OF SEVEN BILLION
DOLLARS.
HEARD ESTIMATES AS HIGH AS
TWENTY BILLION DOLLARS A SUSPECT
LA THAT'S IN YOUR DISTRICT
SENATOR GAINES.
AND SO THE QUESTION BECOMES WITH
THAT AMOUNT OF CASH.
WHAT YOU DO BECAUSE YOU CAN'T
DEPOSIT THE BANK?
WHAT DO YOU DO?
AND THE STATE HAS BEEN TO THE
TREASURER'S OFFICE OF THE
ATTORNEY GENERAL AND OTHERS.
HAVE BEEN TRYING TO FIGURE THAT
OUT AND THEY HAVE BEEN TALKING
ABOUT THE NOTION.
PROBABLY GOVERNMENT BANK.
WILL I HAVE A SENSE OF URGENCY
ABOUT THIS AND TOGETHER WITH OUR
SPONSOR HERE. FEELING MORE OFTEN
STATEBOARD OF EQUALIZATION WE
PUT OUR HEADS TOGETHER.
TO TRY TO COME UP WITH THE
SOLUTION IT'S KIND OF A LITTLE
ODD DUCK SOLUTION THE SENSE OF
HOW BANKING AND CREDIT UNIONS
NORMALLY WORK.
BUT WE ARE FACED WITH A
SIGNIFICANT PUBLIC PAY SAFETY
CHALLENGE WERE FACED IS.
A SMALL WILL TELL YOU ISSUES OF
KEEPING PROPER RECORDS GETTING
PROPER TAX DOLLARS IN SHOULD
ADDRESS THOSE ISSUES IN MORE
DETAIL SO WHAT WE DO. HOW DO WE
FIGURE IT OUT
AND WHAT WE'VE DONE IS WE'VE
COME UP WITH KIND OF AN
INTERESTING MODEL A DIFFERENT
MODEL PUT SOME TIME AND IT?
WOULD NOT ALLOWED TO PUBLICLY
TALK ABOUT ALL THE PEOPLE WE
TALK TO BUT WE TALKED TO ALL THE
EXPERTS AND ME AND MY PRIDE
PREVIOUS LIFE FIVE ACTUALLY
FORMED A BASAL FLOOR AND WORKED.
ON BEHALF OF VARIOUS BANKS AND
DECADES EARLIER HAVE SOME
GENERAL UNDERSTANDING OF THIS.
IT'S ARE THE CONCEPT WAS IN A
VERY LIMITED SENSE
COULD WE CREATE.
SOME LEVEL OF WHAT WOULD LOOK
LIKE A BANK.
OUTSIDE OF THE FEDERAL SYSTEM
WHAT OTHER TWO CHARACTERISTICS
OF THE FEDERAL SYSTEM ON THE ONE
HAND.
AND SECONDLY WHAT ARE THE BIG
PUBLIC POLICY CHALLENGES FOR US
ON THE OTHER.
TO PUBLIC POLICY CHALLENGES IN
THE FEDERAL SYSTEM ARE ONE WE
USE FEDERAL DEPOSIT INSURANCE
CORPORATION TO WAIT TO TO ENSURE
DEPOSITS WHEN YOU PUT YOUR MONEY
IN THE BANK.
THE BANK GOES BUST FEDERAL
GOVERNMENT IMPACT PICK UP THE
TAB.
YOU CAN'T USE FDIC BECAUSE IT'S
A FEDERAL SYSTEM IT WOULD BE
VIOLATING FEDERAL LAWS.
SECOND. WOULD USE A WIRE FEDERAL
WIRE SYSTEM A TRANSFER SYSTEM
CLEARING HOUSE THAT'S CONTROLLED
BY THE FEDERAL GOVERNMENT.
SO THE NOTION IS COULD WE CREATE
A CLOSED LOOP SYSTEM IF YOU WILL
SOMETHING THAT WORK WITHIN THE
BORDERS OF CALIFORNIA. IN THAT
DEALT IN LARGE MEASURE WITH THE
UNDERLYING CHALLENGES THAT WE
FACE AND WHAT ARE THOSE YOUR
LANDLORD WE GOT FIVE TENANTS.
AND THAT GEORGE ME TWENTY FIVE
THOUSAND DOLLARS A MONTH FOR A
WAREHOUSE
FIRST OF THE MONTH WHEN YES HERE
READ DO YOU HAVE SOMEBODY
WALKING WITH TWENTY FIVE
THOUSAND DOLLARS IN CASH.
COULD WE TAKE A OF SAFER AND
BETTER SYSTEM SECOND. MOST
IMPORTANTLY HERE THE GOVERNMENT.
I'VE TALKED TO A NUMBER OF
GOVERNMENT DEPARTMENTS ALREADY
IN PEOPLE THAT ONE AGENCY.
THEY'RE ASKING FOR BUDGET CHANGE
PROPOSAL TO PUT IN BULLET PROOF.
BUT WAS.
DEVICES IS ONE OFFICERS TELLING
AT SEVEN THOUSAND DOLLARS IN ONE
DAY.
RIGHT THEY GOT A CASH COUNT THE
CASH THREE FOUR TIMES A TAKES
DAYS TO COUNT THIS STUFF CAN YOU
BE MORE EFFICIENT AND SAFER.
AND AS THE THAT THAT AS MISS
MALL WILL TELL YOU ALSO CAN YOU
GET BETTER RECORDS WITH RESPECT
TO THAT ENSURE GREATER.
PARTICIPATION BY PEOPLE
ACTUALLY PAYING THEIR TAXES.
THIRDLY THERE ARE PEOPLE WHO
REGULARLY WORKS WITH VENDORS WHO
REGULARLY WORK WITH THESE FOLKS
SIMPLE EXAMPLE OF USE MANY TIMES
SOMEONE'S A PLUMBER TO PUT IN
PIPES TO WATER THE PLANTS.
YOU HAVE TO GIVE THEIR PERSON
THE THIRTY TWO HUNDRED BUCKS
WERE GIVEN SO I CHECKED INSTEAD.
AND LASTLY CAN YOU HELP INVEST
IN CALIFORNIA BECAUSE BY
INVESTING IN LOCAL BONDS SEE IN
THE CITY YOUR WATER DISTRICT
ORINVESTING IN STATE BONDS WAS A
STATE INSTRUMENTS. CAN YOU GO
AND.
TAKE A DEPOSIT INTO ONE OF THESE
BANKS AND BYABAN.
BECAUSE YOU'RE NOT GONNA GET
INTEREST ON YOUR MONEY AND CAN
USE THAT MONEY TO HELP INVESTED
INFRASTRUCTURE OF THE COMMUNITY
THINGS.
SO WE'VE DEVELOPED THIS LIMITED
CHARTER BANK SLASH CREDIT UNION
BECAUSE IF WE DON'T ONE
DISCRIMINATING AS CREDIT UNIONS
ARE BANKS WERE AGNOSTIC IN THAT
REGARD.
TO LET THEM FOR IN THESE
INSTITUTIONS WITH IN THE
DEPARTMENT OF BANKING OVERSAW Y.
ABOARD THAT INCLUDES A TREASURE
THE CONTROLLER THE CANNABIS
PEOPLE AND.
AS AN EX OFFICIO PERSON THE
THAT THE.
DIRECTOR OF FINANCE
TO BASICALLY CREATE THESE WHAT
WE CALL THESE LIMITED CHARTER
INSTITUTIONS LIMIT CHARTER
BANKS.
AND THE LIKE THAT'S WHAT THIS
IS ABOUT FOR THOSE EXCEPT FOR
PURPOSES SO WHAT HAPPENS HOW
THIS IS ACTUALLY WORK IN THE
REAL WORLD BECAUSE IT'S SO
DIFFERENT.
FIRST HOW BANKS WORK IN THE
BASIC SENSE WHEN YOU GO TO A
BANK YOU PUT YOUR DEPOSIT YOUR
FIVE HUNDRED DOLLARS AND THEY
GIVE YOU INTEREST ON THAT. THE
INTEREST TO GIVE IS DOWN HERE
YOU GO TO THE BANK AND YOU
BORROW. AND THEY YOU CHARGE
APPEAR IN THE BANK MAKES THE
DIFFERENCE THE DELTA IN TERMS OF
THE PROFIT THAT SO THEY PAY
THEIR EMPLOYEES AND MAKE A
PROFIT TO BE A BANK.
WE'RE NOT GOING TO BE ABLE TO DO
THAT AND ONE OF THESE LIMITED
BANKS LIMITED CHARTER BANKS OR
CREDIT UNIONS HOW DO YOU DO IT.
YOU GONNA CHARGE FEES
IT'S GOING TO BE A FEE BASED
BUSINESS
WE HAVE AN OHIO BANK THAT I'VE
THAT I SAW THEY TRY TO DO IN
OHIO COST THREE THOUSAND DOLLARS
TO OPEN ACCOUNT.
TWO YEARS AGO IN MONTHLY FEES
WERE SEVENTEEN HUNDRED FIFTY
DOLLARS
QUESTION IS IF YOUR A
DISTRIBUTOR BANG TO COME IS IT
CHEAPER THAN PAYING FOR SECURITY
FOR THE MONEY. IS A CHEAPER THAN
PAYING FOR THE CAMERAS AND AND
THE INSURANCE IF YOU'RE GONNA
HAVE TO PAY WHAT IS THAT LOOK
LIKE.
SO YOU CREATE THESE BANKS THAT
ARE OUT THERE AND THE NOTION IS
THAT. YOU COULD YOU COULD MAKE
IT A POSITIVE YOU ONE OF THESE
BUSINESSES AND YOU WILL BE ABLE
TO. WRITE A CHECK OUT OF THAT
CHECKING ACCOUNT IN THIS LIMITED
CHARTER INSTITUTION AND WHAT WE
HAVE HERE IS A CHECK WE BOB
BECAUSE WE SAID IN THE BILL BANK
YOU CAN'T. KNOW WHAT THIS TO
SOMEBODY TO TAKE HIS TO BANK OF
AMERICA CITIGROUP.
THIS CECK WAS ISSUED BY THE S.
B. NINETY CANNABIS A BANK
AND MAY ONLY BE OR CANNABIS.
.
CREDIT UNION AND THEY ONLY
DEPOSITOR CASH THAT
S. LIMITED CHARTERED BANK OR
CREDIT UNION OR ANOTHER KIND OF.
AGREES TO.
SO THE IDEA IS BASICALLY THIS.
SOMEBODY COMES ALONG WHO SOME
FOLKS TO COME ALONG WHO OWN BUT
FOR SOME DISTRIBUTION COMPANY
ONE OF THE FELLOWS THAT I MET.
FORTY MILLION DOLLARS OF THE
TRACTOR TRAILER.
BUT WE DON'T THEY PUT THE MONEY
TO GO TO THE TO THE DEPARTMENT
OF.
INSURANCE ADOPTED BANKING OF
THE BANKING COMMISSIONER.
THEY. START A BANK AND THEY JUST
IT'S A LIMITED CHARTER BANK THEY
STARTED THEY PUT THE MONEY UP.
AND THIS IS NOT A SITUATION
WHERE IT'S GOING TO BE A
GIGANTIC PROBABLY OPEN THE BANK.
BECAUSE THE PROCESS.
EVERY OTHER RULE OF THE BANKS OR
CREDIT UNIONS APPLIED OPINION
BUT DON'T DO THAT SO WE'RE NOT
REINVENTING THE WHEEL WE'RE JUST
INCORPORATING BY REFERENCE THAT.
THEY LET LA THAT THE LEGISLATURE
DOES ALL THE TIME ALL THE OTHER
PROVISIONS SO WHAT YOU'RE FROM
WHAT YOUR REQUIREMENTS ARE. FOR
CAPITALIZATION WITH THE
FIDUCIARY OBLIGATIONS ARE OF
BOARD MEMBERS OF THE BOARD OF
DIRECTORS AND ALL THAT STUFF IS
HOW IT WORKS.
FOR EXAMPLE JUST TO GIVE YOU
SOME ORDERS OF MAGNITUDE WE
SONORA BANK CLOSURES.
THERE ARE ONE THOUSAND FORTY
FIVE BRING BRANCHES OF CLOSE THE
LAST FIVE YEARS IN CALIFORNIA.
ACTS TWENTY SEVEN ALAMEDA THIRTY
THREE IN CONTRA COSTA TWO
HUNDRED TWENTY NINE IN LOS
ANGELES ORANGE COUNTY NINETY
NINE EIGHTY SIX.
SO THERE'S A LOT OF PLACES WHERE
YOU COULD IMMEDIATELY GO AND
THESE NEW PEOPLE COULD BUY A
BANK.
AND THEN ONCE THEY BY THE BANK
THOSE CHARGES FEET. LAST KNOWN
ADDRESS IS THE IS THE INSURANCE
ISSUE AND SO IF YOU HAVE THIS
LIMITED TO POINT SECTION ONE TO
MAKE THE WAY THE BANK WOULD WORK
IF YOU CHARGE A FEE MIGHT BE A
THOUSAND DOLLARS A MONTH MIGHT
BE TWO THREE THOUSAND DOLLARS A
MONTH.
PURSUE MAKES A DEPOSIT OPENS
ACCOUNT WILL BE IN A SITUATION
WHERE IT'LL BE A LOT LESS MONEY
MAINTAINING THAT CASH.
YOU OF THE PUBLIC SAFETY ISSUES
THAT AUDIT ISSUES AND ALL THE
OTHER ISSUES THAT SMALL TALK TO
YOU ABOUT.
BASICALLY YOU HAVE THIS ACCOUNT
WHAT'S GONNA HAPPEN IS YOU'LL
MAKE YOUR DEPOSIT THAT CASH
CHECK AND YOU WRITE CHECKS.
THE PERSON WANTS TO GET PAID FOR
PLUMBER WHOEVER IT IS WILL THAT
BANKING CASH THE CHECK.
IF THERE'S TENER TWENTY BANKS
AROUND THE STATE THEY CAN WE
MENTION THIS THE BILL CRIED
INTEROPERATE OF AGREEMENT SEVERE
TO SAN DIEGO BANK AND THEY HAVE
AN AGREEMENT WITH SOMEBODY AND
MENDOCINO. YOU CAN CASH A CHECK
THERE. AND WHAT WILL HAPPEN WILL
BE IF YOU'RE A A A PLUMBER YOU
GOTTA CHECK IF YOUR LANDLORD
JUST ACCEPTED THAT YOU CAN GET A
CHECK GO TO THE BANK TO CASH IT.
THE WHOLE IDEA. IS THE PEOPLE OF
THE BANKING BUSINESS LOOK AT
THIS WHO HAVE A LOT OF
EXPERIENCE IN THE BANKING
BUSINESS DEAL MY GOD WHAT ABOUT
THIS AND WHAT ABOUT CREDIT CARDS
AND WHAT ABOUT ALL THESE OTHER
THINGS.
THE REALITY IS WITH AN ODD
CIRCUMSTANCE WITH A SENSE OF
URGENCY ABOUT THIS THAT WE HAVE
TO MOVE QUICKLY BECAUSE THE
IMPACT OF ALL THIS BOTH IN TERMS
OF REVENUE FOR THE STATE. AND IN
TERMS OF PUBLIC SAFETY IN SOME
OF THE STORIES THAT WE'VE ALL
READ ABOUT IN THAT REGARD.
THE BANKING COMMISSIONER HAS
AUTHORITY UNDER THEIR LAW THEY
VOTERS. AS A MEMBER THE
CALIFORNIA STATUTES
REQUIRE STATE CHARTERED CREDIT
USED TO HAVE INSURANCE.
BUT THE STATUTES EXPLICITLY
ALLOW CREDIT USED TO A PRIVATE
INSURANCE AT THIS INSURANCE IS
NOT. WITH IT HAS TO BE HELD
SATISFACTORY TO THE
COMMISSIONERS SAME THING FOR
STATE CHARTERED BANKS
REFERENCING CERTAIN CALIFORNIA
CODE SECTIONS WHICH I DON'T WANT
TO REFERENCE UNLESS YOU WANT
THEM.
AND THE IDEA.
IS THAT THEY HAVE THE AUTHORITY
TO DO THAT AND THERE ALREADY IS
AMERICAN SHARE INSURANCE IS THE
MAIN PROVIDER OF DEPOSITOR
INSURANCE THE NATION THE OF A
HUNDRED TWENTY FIVE CREDIT
UNIONS IT USED PRIVATE
INSURANCE.
SO THE BOTTOM LINE IS WE'VE
KICKED THE TIRES I PERSONALLY
SPEND A LOT TIME DRAFTING THIS
THING TO THINK IT THROUGH AND
MAKE IT WORK ULTIMATELY. IF THE
LANDLORD WANTS TO PAY THEIR
TAXES ON A CANNABIS CHECK THEY
CAN DO IT. IF THE LANDLORD WANT
IF IF THE VENDOR WANTS TO PAY
THEIR TAXES
OR SOMEBODY WHO HAS A LOT OF
MONEY IN THE BANK CAN BUY. BONDS
FROM THE STATE OF CALIFORNIA SO
WHAT WE'RE TRYING TO DO IS THIS
IS NOT PERFECT.
BUT WHAT IT IS IS A THOUGHTFUL
RESPONSIBLE WAY WHERE THERE'S
JUST AN EXTRAORDINARY
COMPRESSION IN THE BUSINESS
COMMUNITY OR PEOPLE THAT ARE
TRYING TO SET UP LEGITIMATE
OPERATIONS I CAN TALK TO YOU
ABOUT OTHER STATES AND. ALASKA
AN ARIZONA AND OHIO AND.
CALIFORNIA AND COLORADO IF YOU
WANT BUT TO BE ABLE TO HAVE A
WAY TO PAY YOUR TAXES AND PAY
YOUR GOVERNMENT FEES LESS THE
BURDEN. LESS THAT THE PROBLEM
WITH PUBLIC SAFETY PAPA SAFETY
OF THE EMPLOYEES I'VE TALKED TO
SOMEBODY. IN VARIOUS GOVERNMENT
AGENCIES OF TOLD ME THEY'RE
REALLY CONCERNED ABOUT THAT.
GET THE MONEY AND START A
PROCESS I'M SURE THAT OVER THE
YEARS COMING FORWARD IF IT'S
FEDERAL LAW DOESN'T CHANGE WE
WILL SEE.
ADDITIONS ON THIS WITH CREDIT
CARDS AT ALL SORTS OF STUFF THAT
YOU COULD DO WAS IN A CLOSED
LOOP SYSTEM.
I THINK WHAT LET OF TURN THIS
OVER TO US. DENNIS MA AND THEN I
THERE WERE SOME QUESTIONS THAT
THE COMMITTEE HAD WITH RESPECT
TO AMENDMENTS NOT ADDRESS THOSE
ARE. AT THE APPROPRIATE TIME.
THANK YOU. DINNERS.
SMALL.
THANK YOU VERY MUCH MEMBERS. OF
BUT SEE.
I GUESS WE SHOULD START WITH
THIRTY STATES HAVE ALREADY
PASSED SOME SORT OF MEDICINAL.
AND OR DAHLE USE LEGISLATION
THERE'S PROBABLY GONNA BE SIX
MORE STATES THAT WILL SEE IT ON
THEIR BALLOT THIS NOVEMBER.
SO CLEARLY.
WE ARE NOT UNIQUE IN.
WHAT IS HAPPENING?
LOU.
TRUMP CALLING AHEAD OF NNAMDI
SENT A MEMO ABOUT HOW IS CHAU
LED THE REGULATIONS.
IN IS A WITH THIS IS JEFF
SESSIONS LISTENING IN.
ANYWAY. SHOULD I CONTINUE.
SO.
THIS IS SO CLEARLY A MAJORITY
OF THE STATES HAVE SOME SORT OF.
GHETTO MEDICAL OR ADULT USE
LEGALIZATION AND IT'S VERY
DISAPPOINTING THAT MR SESSIONS
DEBUTS ON THE PHONE.
EFFECTIVELY RESCINDED THE CALL
MEMO WHICH
HA HAS MADE IT A MORE DIFFICULT
AND HAS CREATED A LOT MORE
ANGST.
IN THESE STATES
BOB.
WHEN I GOT ELECTED TO THE BOARD
OF EQUALIZATION THREE YEARS AGO.
THE BOARD. AYE IS SUPPOSED TO
BE COLLECTING SALES TAXES ON THE
DISPENSARIES HOWEVER WE DO NOT
KNOW HOW MUCH WE WERE
COLLECTING.
HOP BY VIRTUE OF THIS BEING A
SCHEDULE ONE SUBSTANCE AND WHEN
YOU TAKE OUT A SELLER'S PERMIT
THERE IS NO NAY SIX CODE. TO
CHECK FOR CANNABIS HOT AND SO WE
DID THE BEST WE CAN AND WE HAVE
BEEN DOING THE BEST WE CAN. A AT
THE TAX AGENCY TO APPROXIMATE
HOW MUCH SALES TAXES WE HAVE
BEEN GENERATING.
IN TWO THOUSAND AND FOURTEEN WE
ESTIMATED WE COLLECTED THIRTY
NINE MILLION DOLLARS IN SALES
TAXES. TWENTY FIFTEEN FIFTY NINE
MILLION TWENTY SIXTEEN EIGHTY
TWO MILLION TWENTY SEVENTEEN
NINETY TWO MILLION.
I ESTIMATE IT'S ONLY ABOUT MAYBE
A THIRD OF THE DISPENSARIES THAT
ARE ACTUALLY OUT THERE THAT ARE
SUPPOSED TO BE REPORTING BUT.
WITHOUT SOME SORT OF THE
DEPOSITORY OUT PAPER TRAIL.
ACCOUNTING OF THERE IS NO WAY
FOR US TO EFFECTIVELY AUDIT
THESE INSTITUTIONS WE BASICALLY
STAND OUTSIDE WE COUNT HOW MANY
PEOPLE COM. ON A THREE DAY BASIS
THEN WE EXTRAPOLATE BACK SEND
THEM A BILL AT INTEREST AND
PENALTIES AND WE HOPE THEY
PACKED THAT'S HOW WE ARE
AUDITING. LA DISPENSARIES AT
THIS MOMENT NOT VERY EFFICIENT
AND NOT VERY A VERY EFFCTIVE.
SO.
LIKE MISTER HERTZBERG US UNDER
HERTZBERG SAID YOU KNOW WE ARE
ONE OF THE AGENCIES THAT WERE.
DEALING WITH THE LARGE AMOUNT OF
CASH WE HAD. HAVE TWENTY THREE
OFFICES.
AT THE BOARD OF EQUALIZATION
FOR THE NEW CD TFA. HEART THAT
WAS COLLECTING CASH AND THEN ALL
HALF OF THE OFFICES DECIDED THAT
THEY DID NOT WANT TO COLLECT
BECAUSE OF. HOUSE SAFETY
REASONS.
MANY OF THE.
THE REASONS THAT AS SENATOR
HERTZBERG SAID. AND SO THAT PUT
A LOT OF BURDEN ON THE THE
OFFICES THAT DID COLLECT NOW
WITH PROP SIXTY FOUR THERE ARE
AT LEAST SIX AGENCIES THAT ARE
GONNA BE CHARGING. A NEW TAXES
OR FEES OF THE LOCAL GOVERNMENT
ALSO IS GOING TO BE IN CHARGE OF
COLLECTING MORE. OF MONEY
BECAUSE OF ALL THE INCREASE
ACTIVITIES AND SO OF THIS KIND
OF BILL IS UNNECESSARY IT'S.
IT'S VERY PERTINENT I THINK
IT'S IT'S SOMETHING THAT WE NEED
TO.
CAN MOVE FORWARD ON ESPECIALLY
OF THE FEDERAL GOVERNMENT IS NOT
GOING TO BE HELPING US.
YOU ADDITIONAL WITNESS.
THANK YOU.
I MISTER CHAIR AND MEMBERS.
THANK YOU FOR THE OPPORTUNITY
TO SPEAK WITH YOU THIS AFTERNOON
MY NAME IS LINDSAY ROBINSON AND
I'M THE EXECUTIVE DIRECTOR OF
THE CALIFORNIA CANNABIS INDUSTRY
ASSOCIATION OR SEE CIA IS WERE
COMMONLY KNOWN.
CCA HAS OVER FOUR HUNDRED AND
FIFTY BUSINESS MEMBERS
REPRESENTING SIX HUNDRED BRANDS.
AND NEARLY TEN THOUSAND
EMPLOYEES ACROSS THE CITY AND
SINCE THE ASSOCIATION WAS
FOUNDED ALMOST FIVE YEARS AGO WE
HAVE WORKED TIRELESSLY TO
IDENTIFY SOLUTIONS.
TO ADDRESS OUR INDUSTRIES
BANKING CHALLENGES WITH THE
INTENT TO ALLOW THESE BUSINESSES
TO FULLY AND EFFECTIVELY
PARTICIPATE AND COMMERCE.
AS FIONA JUST ILLUSTRATED THE
EVOLVING CANNABIS INDUSTRY HAS
SALES IN THE BILLIONS YET THE
INDUSTRY'S BEEN SHUT OUT OF THE
BANKING SYSTEM LEADING.
TWO UNAVOIDABLE ISSUES IN
BUSINESS MANAGEMENT BUT MORE
IMPORTANTLY IN PUBLIC SAFETY.
ONE OF OUR MEMBERS HAS A TAX
BILL DUE IN A MONTH THAT IS
EIGHT HUNDRED THOUSAND DOLLARS
AND THEY WILL BE PAYING NOT IN
CASH.
THE THREAT OF VIOLENCE AND
THEFT IS EXTREMELY REAL FOR OUR
MEMBERS.
LARGE SUMS OF MONEY ARE BEING
TRANSPORTED AS PART OF EVERYDAY
BUSINESS
AND MANY OF OUR MEMBERS ARE
FORCED TO STILL PLAY THEIR
EMPLOYEES AND VENDORS IN CASH WE
HEAR COUNTLESS STORIES. OF
PEOPLE BEING FOLLOWED LEAVING
WORK BEING RUN OFF THE ROAD
BEING ROBBED AT GUNPOINT.
FROM A BUSINESS MANAGEMENT
PERSPECTIVE THIS IS INCREDIBLY
TIME CONSUMING LABOR INTENSIVE
AND VERY DANGEROUS.
AND THESE ISSUES NOT ONLY EXTEND
TO OUR MEMBERS BUT ALSO TO THE
ASSOCIATION ITSELF.
WE HAD OUR CREDIT UNION ACCOUNT
SHUT DOWN A FEW WEEKS AGO.
I TIRELESSLY LOOKS FOR A NEW
BANK ACCOUNT FOR MANY MONTHS IT
WAS FRUSTRATING IT WAS
EMBARRASSING. AND INCREDIBLY
TIME CONSUMING.
AS A FEDERALLY REGISTERED TRADE
ASSOCIATION THAT DOES NOT TOUCH
THE PLAN IN ANYWAY IT WAS
BEWILDERING TO ME BUT NO BANK
WOULD DO BUSINESS WITH US.
AND IT WAS JUST ANOTHER SET BACK
TO RUNNING AN EFFECTIVE AND
EFFICIENT BUSINESS.
THE CALIFORNIA CANNABIS INDUSTRY
ASSOCIATION IS COMMITTED TO
PARTNERING WITH YOU TO IDENTIFY
SOLUTIONS TO ADDRESS THESE VERY
CRITICAL ISSUES IN OUR STATE AND
IN OUR INDUSTRY. AND SEE CIA IS
PLEASED TO SUPPORT BY SPIN NINE
THIRTY AND WE THINK THE AUTHORS.
FOR ON THEIR COMMITMENT TO THIS
IMPORTANT LEGISLATION THANK YOU
TO THE CHAIR OF THE COMMITTEE.
YOU ADDITIONAL WITNESSES IN
SUPPORT AGAIN WILL FORM A SINGLE
FILE LINE AND APPROACH THE
MICROPHONE.
STATE YOUR NAME YOUR
ORGANIZATION GOOD AFTERNOON
MISTER CHAIRMAN MEMBERS TRACY
STEVENS REPRESENTING EASE
SOLUTIONS WE WANT TO THANK THE
AUTHOR FOR HIS TIRELESS EFFORT
ON THIS AND AND FIONA. FOR ALL
OF YOUR HELP THE LAST THREE
YEARS. AND ONE SHORT SUPPORT
THANK YOU.
MAX DOUGLAS ON BEHALF OF. SORRY
FLOW KARMA AND THE COMFORT HIM
AS DELIVERY ALLIANCE IN SUPPORT.
GOOD AFTERNOON MISTER CHAIRMAN
AND COMMITTEE MEMBERS ACTUALLY
MARTINEZ ON BEHALF OF THE
SERVICE EMPLOYEES INTERNATIONAL
UNION LOCAL ONE THOUSAND AND
STRONG SUPPORT.
THANK YOU.
GOOD AFTERNOON CHAIR AND MEMBERS
SAW MY NAME IS DAVID ARE GOOD
OLE EINAR. COUNCILMEMBER IN
SOUTHERN CALIFORNIA BUT I'M ALSO
A CEO OF A HIGH HAMPTON INVOLVED
IN THE CAMPUS SPACE WHERE A
PUBLICLY TRADED COMPANY. AND WE.
I'D LIKE TO PERSONALLY THANK
BOTH OF YOU SENATOR AND FIONA.
FOR.
HA AUTHORING THIS BILL AND I
WERE IN SUPPORT OF THIS BILL
THANK YOU.
HI GOOD AFTERNOON CAN MEET ON
BEHALF OF WE DROP CANNABIS
DELIVERY AND LONG BEACH
COLLECTIVES ASSOCIATION IN SPORT
THANK YOU.
HI KATHY VAN AUSTIN MBM STRATEGY
GROUP REPRESENTING KHALIFA OF
THE LARGEST IN A GROUP.
VERTICALLY INTEGRATED A
BUSINESS AND CANNABIS BUSINESS
IN CALIFORNIA. I'M STRONG
SUPPORT THE BILL.
BUSH JR MEMBERS RAN MARC NOT BE
HAVE A BLACKBIRD LOGISTICS AND
STRONG SUPPORT AND THANK YOU
BOTH.
MISTER CHAIRMAN THERE'S LESS AND
MORE WHICH I ORDER ENTRY ON
BEHALF OF MAYOR ERIC GARCETTI IN
THE CITY OF LOS ANGELES AND THE
CITY OF SANTA MONICA AND
SUPPORT.
THAT TONY BLOOM BEHALF OF RIVER
CLICKED OF THE LARGEST CAN
DISTRIBUTE THE STATE HERE IN
STRONG SUPPORT.
GRAYSON PRIDE OF THE HAVE THE
CALIFORNIA GROWERS ASSOCIATION
AND MY COLLEAGUE AMY JENKINS ON
BEHALF OF CAN CRAFT IN SUPPORT
THANK YOU.
BERNIE MURPHY WITH WE'D MAPS IN
SUPPORT.
DANIEL CONWAY.
WITH TRUTH ENTERPRISES WE HAVE
A COUPLE LICENSE CANNABIS
BUSINESSES AND STRONG SUPPORT
THANK YOU FOR YOUR LEADERSHIP.
THANK AFTERNOON AERONAUT ON
BEHALF OF THE CANNABIS
DISTRIBUTION ASSOCIATION ALSO ON
SONGS BUT.
BENEDICT LIEU VON.
WITH CALIFORNIA'S BY CHAMBERS OF
COMMERCE.
THE CALIFORNIA BLACK CHAMBER OF
COMMERCE.
AND ALSO ON THE.
THE BANK OF THE PUBLIC.
FEASIBILITY STUDY OF THE PUBLIC
BANK VOCAL.
I'D FOR SOTHEBY'S AGAINST IT BUT
I LIKE THE QUICK FIX.
BUT WHAT YOU DO WITH A CLOSED
LOOP SYSTEM THERE'S PEOPLE THAT
ARE LEGITIMATE OFFENSE AND. SO
FRAZIER.
AND.
.
WILL PITCH TO DISCUSS AMENDED
ANOTHER BILL.
THANK YOU.
BROWN BUDGET CEO OF THE
CALIFORNIA CANNABIS COALITION IN
EXECUTIVE DIRECTOR FOR THE
CALIFORNIA MINORITY LINES INLAND
EMPIRE CHAPTER FOR SMALL WE
STRONGLY SUPPORT THE BILL. BUT
WE ALSO WOULD LIKE TO FOR YOU TO
OPEN UP ESPECIALLY YOUR AYE SIX
POINT MORE BANKING GOT OPTIONS
ESPECIALLY A BANKERS BANG
SPECIAL PUBLIC BANKING AS SARS
ESPECIALLY. YOUR SOCIAL EQUITY
BILL YOU BILL WE WOULD LIKE TO
LOOK AT DIVERSE SUPPLYING
OPTIONS LOOK AT SOCIAL
DIVESTMENT OF EXPLORING THOSE
OPTIONS AS WELL AS ASSEMBLING
THEM INTO THIS BILL AS WELL
THANK YOU FOR YOUR CONSIDERATION
WE STRONGLY SUPPORTED.
THANK.
GOOD AFTERNOON MY NAME IS
MELISSA SANCHEZ I'M AN ATTORNEY
WITH HARVEST LA GROUP IN A SAND
HERE ON BEHALF OF OUR
APPROXIMATELY FOUR HUNDRED AND
FOUR HUNDRED AND FIFTY SMALL
FARM CLIENTS THROUGHOUT THE
STATE OF CALIFORNIA. AND WE ARE
IN STRONG SUPPORT OF THE SPELLS
THANK YOU.
ADDITIONAL WITNESSES
SCENE NINE BRING IT BACK TO
COMMITTEE ANY QUESTIONS BY
COMMITTEE MEMBERS. MISS
GALGIANI.
HELLO I'M SORRY.
KAREN LEE GET AND I AM TOTALLY
AND.
AGAINST THIS BILL I RESPECT YOU.
BUT WE AS.
PEOPLE THAT IT'S NOT IN THE IT
INDUSTRY SHOULD NOT BE IN DANGER
BECAUSE OF THE US.
THEY'VE BEEN ENDANGERED US TOO
MANY TIMES THEY WOULD DO HEIR
PART ROBBERIES.
HOME INVASIONS.
EVERYTHING THIS NEEDS TO STOP.
REPUBLICAN DO NOT DO THE
INDUSTRY NEED TO BE PROTECTED
FROM THEM.
THEY ARE POLLUTION THEIR
INDUSTRY ON US HIM WE FOUND
ENOUGH. A LOT OF PEOPLE THAT ARE
NON PI PEOPLE. HAVE BEEN
COMPLAINING.
THEY'RE SCARED OF THESE PEOPLE
THEY'RE TIRED OF IT.
THINK YOU KNOW ME I'M WHEREIN
THE CANINE SURE.
IN MEMORY OF TWO CANINES WITHIN
THE LAST YEAR THERE WAS SHOT.
WASN'T KILLED.
WE HAVE OFFICERS THERE KILLED.
AND SHOT.
WE NEED TO PROTECT OUR LAW
ENFORCEMENT BECAUSE THEY'VE BEEN
HAVE BEEN DEALT WITH THIS ISSUE
FOR TOO LONG THANK YOU.
THEY ARE SHARED.
ALRIGHT BRING IT BACK TO
COMMITTEE MISS GALGIANI.
I THINK TO BE ADDED AS A CO
AUTHOR PLEASE.
THANK YOU AND I'LL MAKE A MOTION
ON THE BALLOT APPROPRIATE TIME.
BECAUSE RUSHED YEAR BY LIKE.
BUT JUST THE CORE THE REQUEST AS
WELL NOT YES SIR. NOT YET NO
WE'RE GOING TO SERIOUS PROBLEM
NO DOUBT TO AND.
THANK YOU FOR TRYING TO WORK
THIS OUT I'VE JUST GOT SOME
QUESTIONS BECAUSE I OR I NEVER
BUILT A BANK LIKE YOU DID.
SO.
I LOVE THE OF THE CHECK TO YOU
BY THE WAY THE NUMBERS AND. I
THINK THAT'S PRETTY GOOD FOR ON
YOUR NINETEEN SO FAR YOU KNOW.
YEAH.
IS THIS AN ACTUAL EGGMAN IN NO
ONE ELSE COULD DO BUSINESS
EXCEPT THROUGH THE CAMPUS
CANNABIS BUSINESSES WITH THE
SPEECH THAT'S ALL IT IS IS JUST
FOR PEOPLE TO CANNABIS BUSINESS
RATS IT THAT'S A CAD ACCOUNTS
RELATED BUSINESS WHICH IF YOUR
LANDLORD FOR EXAMPLE AND YOU
OPEN THE.
LET'S ASSUME YOU'VE GOT FIVE
TENNIS RIGHT AND YOU DON'T HAVE
TO TAKE CHECKS AND YOU COULD
JUST ELECTRONICALLY TRANSFER THE
MONEY SAY FROM BRADFORD
CANNABIS.
DISTRIBUTOR TO TO TO DIVIDE ACT
LANDLORD COUNT AND SO YOU'LL GET
A HUNDRED THOUSAND DOLLARS IN
YOUR ACCOUNT SHE DON'T HAVE AN
ACCOUNT OF THAT BANK.
NOW YOU HAVE A HUNDRED THOUSAND
AT BANK WHAT COULD YOU SEE YOUR.
CAN GEN CHILI INVOLVED YOU CAN
USE THAT MONEY AND TAKE IT OUT.
AND TAKE IT TO YOUR BANK OR AS
CASH.
OR YOU COULD PAY YOUR TAXES WITH
IT OR YOU COULD BY STATE BOND
WITH THAT FOR YOU COULD PAY
PEOPLE BEAT THAT RELATE TO
PLUMBERS IN YOUR BUILDING THAT
DIRECTLY RELATED TO THE
BUSINESS.
THE THE REASON WHY THIS IS SO
IMPORTANT CHAU CRAZY THIS'S
STATE BOARD OF EQUALIZATION SETS
UP A DESK AT A BIG INTERNATIONAL
BANK.
SO THEY COME IN TO PAY THE TAXES
THE FILLER COULD TELL YOU OF
MISS MARKETING MORE ABOUT THIS
BUT THEY DID AND IN THE STATE OF
THE ART. YOU PAY YOUR BILL AT
THE BANK
IN A TURNAROUND IN THE DEPOSIT
INTO THE STATE OF CALIFORNIA
BRIDGE WITH THE BANK SAID NO YOU
CAN'T DO THAT ANYMORE. I'VE
TALKED TO NUMBER THE
DISTRIBUTORS THROUGHOUT TO THE
GET PHONY BALONEY CREDIT CARDS
ACCOUNTS OR THE ISSUE OF TRYING
TO FIND AN ACCOUNT TO DO STUFF
SOMETIMES A FEW CREDIT UNIONS
HAVE DONE THAT. SINCE YOU KNOW
AND THEY BUT THEY DO IN THE LOW
LEVEL THIS IS A THIS IS A WAY.
THAT YOU CAN REALLY AT LEAST THE
STATE STEPPING UP AS QUICKLY AS
POSSIBLE TO TRY TO PROVIDE A
SOLUTION A DEALS WITH SOME OF
THESE PUBLIC SAFETY ISSUES. BOTH
FOR STATE EMPLOYEES ASCII YOU
TESTIFIED AS WELL AS FOR THE
PUBLIC WHEN ALL THIS CASH IN THE
SYSTEM SO IT THIS IS A WAY AND
THERE'S A LOT OF DISCRETION
ALREADY. IN THE BANKING
COMMISSIONER'S OFFICE HE
DISLIKED OF DISCRETION ON
INSURANCE THAT DISCRETION ON
REGULATIONS AND ALMOST ABOUT THE
THINGS THAT THEY CAN DO QUICKLY
TO GET THIS DONE.
SO I I THOUGHT I FEEL PRETTY
GOODABOUT THE LEVEL OF DETAIL
THAT'S BEEN ENGAGE BETWEEN THE
BOARD OF REALIZATIONS OFFICE IN
OUR OFFICE. TO TO PUT TOGETHER
SOMETHING THAT'S REASONABLE AND
NOT JUST ABOUT A VERY.
SKELETAL BILL.
I MET MY CONCERN IS THAT.
OTHER FORMS OF CASH FROM OTHER
FORMS OF MAYBE ILLEGAL.
BUSINESSES
COULD GO INTO THIS IN ANYWAY IS
THAT IS THERE ANY WAY TO WATCH
MONEY.
YOU KNOW USING THIS PARTICULAR
BANK
YOU'RE BRINGING IT ABOUT YOU
CASH HOW DO WE KNOW THAT THIS
CASH ACTUALLY CAME FROM.
MAYBE THE FROM FROM THE THE
CANNABIS.
BUSINESS
THE BACK OF THE LAW REQUIRES YOU
OF A LICENSE TO OPEN THE BANK
AND THEN BUT SHALL AUDIT.
SURE ALL THIS WE WHAT WE EXPECT
YOU WILL THE BANKS WILL HAVE TO
DO OR THE DEPOSITORY WILL HAVE
TO DO WHAT THEY'RE DUE DILIGENCE
THE WHOLE. I AM ALLEN KNOW YOUR
CUSTOMER JUST LIKE UMPTEEN WHAT
IS REQUIRED THAT A LOT LAWS
REQUIRED UNDER THE FENCE AND
GUIDELINES.
BUT I DO JUST WANT TO GO BACK
AND ADD THAT.
I THOUGHT IT WAS A LITTLE BIT
ALSO IRONIC THAT THE BOARD OF
EQUALIZATION COULD TAKE MILLIONS
OF DOLLARS IN CASH DEPOSIT IT.
COUNTED AND THEN GO ACROSS THE
STREET TO ONE OF THE MAJOR BANKS
AND PUT IT IN THERE. YET.
CLIENTS TAXPAYERS COULD NOT DO
THAT AND SO THAT WAS THE.
KIND OF THE PILOT TASKS FOR US
TO. HAVE ONE OF OUR
REPRESENTATIVES AFTER BANK TO
CUT OUT THAT.
THAT STEPPED IN PROVIDE MORE
SAFETY BUT THE BANK DECIDED THAT
THAT WAS NOT.
ADVISABLE THEY DISALLOWED THAT
PRACTICE SO WE ARE BACK. AT.
YEAH TAXPAYERS COME EITHER TO
OUR STATE AGENCIES ARE LOCAL
AGENCIES TO PAY THEIR MONEY IN
CASH WE HAVE TO COUNT IT WE HAVE
TO HOLD IT WE HAVE TO WAIT FOR
THE. ARMORED CAR AND THEN.
DEPOSIT IT INTO ONE OF THE
BANKS.
WHO IT WOULD THIS DIRE HOW ARE
THEY PAYING THEIR FEDERAL INCOME
TAX NOW DO WE HAVE ANY IDEA WHAT
A PAIN THAT CASH TO WHERE THEY
NOT PAIN YEAH?
THEY ALSO HAVE TO PAY BY CASH
THEY HAVE TO CALL AHEAD OF TIME
TO MAKE ARRANGEMENTS AND THEY
ARE CHARGED A TEN PERCENT
PENALTY.
CALL FOR PAYING IN CASH
IF YOU PAY YOUR FRANCHISE TAX
BOARD TAXES INCOME TAXES IN CASH
YOUR ALSO ASSESSED A TEN PERCENT
PENALTY.
A FEW YEARS AGO WE PASSED A BILL
THAT WOULD WAIVE THE TEN PERCENT
PENALTY FOR. PAYMENTS OF STATE
BOARD OF EQUALIZATION TAXES SO
YOU DO NOT. A UNITED SAYS THE
PENALTY FOR PAYING YOUR STATE.
A SALES TAX BUT YOU STILL ARE.
AUTUMN A SAYS THAT TEN PERCENT
FOR PAYING YOUR INCOME TAXES
OKAY THINK THERE'S ALSO LOOK AT
HOW CAPONE PROVISION EVER I GET
BUSTED FIRST TAXES IN THE BILL
HERE BECAUSE. THE IDEA WITH THE
FEDERAL GOVERNMENT ITSELF STILL
GOTTEN GAIN YOU CAN STILL PAY
YOUR TAXES WITH IT. AND WE PUT A
PROVISION FOR THE COMPTROLLER'S
OFFICE
TO PROTECT THE STATE IN THAT
REGARD SO WE'VE BEEN SENSITIVE
TO THAT OKAY THANKS.
WHICH TOOK QUESTIONS FROM
MEMBERS.
WELL LET ME THINK THE AUTHOR OF
SENATOR HERTZBERG FOR YOUR WORK
ON THIS ISSUE UN I'VE HAD.
MUCH DIALOGUEAND I ALSO WANT
TO THANK GOD.
OUR BOARD CHEER FOR THE DEAL
EVEN SMALL FOR YOUR
PARTICIPATION IN THIS EDITION NO
DOUBT.
THAT THIS IS AN IMPORTANT ISSUE
IT.
ISSUE THAT WE REALLY HAVE TO
GET OUR ARMS AROUND AND FIGURE
OUT HOW TO WE BANK MONEY. THIS
IS NO LONGER.
I ISSUE WERE.
WEAKNESS CAN ALLOW THIS AMOUNT
OF CASH TO BE OUT THERE*
NILLY IS.
NOT FOR GLORIA IS ACTUALLY.
FACTS THAT THERE ARE BILLIONS OF
DOLLARS
BURIED IN HILLS.
AND CALIFORNIA.
FROM THE CANNABIS INDUSTRY OVER
THE LAST.
TWENTY YEARS OR SO.
AND AS SOME ABOUT TIME THAT WE
FIND A WAY TO MAINSTREAM AND AND
GET IT BACK INTO CIRCULATION
AND.
AND AYE AND PUT IT IN A SAFE
PLACE EYES SOFT INSTEAD WHAT WE
ROB BANKS AS WITH MONEY AS. WELL
THAT'S WHY.
THESE CANNABIS PLACES ARE BEING.
ROBBED AT GUNPOINT SEE THE
VIOLENCE THERE AND TO ADDRESS
THE INDIVIDUAL WHO.
EXPRESSED HER OPPOSITION TO HIS
IT'S GONNA MAKE A COMMUNITY
SAFER THAT'S GONNA MAKE A LAW
ENFORCEMENT SAY FOR. BECAUSE
SHOW IT TO COMMONSENSE MEASURES
SHOW.
.
AGAIN I THINK YOU FOR YOUR
EFFORTS HERE IT IS NOT A PERFECT
BILL I I DON'T THINK. WE'RE
GOING TO ACHIEVE.
OF PERFECTION HERE TODAY.
BUT IS TRULY A WORK IN PROGRESS
IN ITS. MORE THAN WHAT. WE HAVE
RIGHT NOW SO I AGAIN I I THINK
THE AUTHOR FOR THIS.
WE HAVE A TO PASS AS AMENDED
RECOMMENDATION I WOULD JUST LIKE
MISTER HERTZBERG TO STATE. THE
AMENDMENTS THAT YEARS A TAKING
SO WE'RE ALL CLEAR ON THAT.
THANK YOU VERY MUCH FOR SHERMAN
AND THINK OF YOUR STAFF FOR THE
HARD WORK I KNOW THIS IS.
A LITTLE DIFFICULT BECAUSE IT'S
AND INVENTING SOMETHING WE'VE
NEVER DONE BEFORE WERE TRYING TO
BE CREATIVE AND. I SUSPECT AS WE
MOVE FORWARD THIS GETS PASSED IN
BECOMES LAW WILL CONTINUE TO
COME UP WITH WAYS FOR CREDIT
CARDS ALL SORTS OF WAYS THAT
WORK WITH THE FEDERAL
GOVERNMENT.
BUT THE CHANGES THAT YOU
RECOMMENDED WAR THAT THE FIRST
ONE WAS CHANGE THE BILL NAME
FROM CANNABIS LIMITED CHARTER
BANK TO THE CANNABIS LIMITED
CHARTER BANKING OR CREDIT UNION
LAW.
WHICH WE ACCEPT THAT AMENDMENT.
SELECT.
THE SECOND COMMITTEE. MONTHLY
PAY PER A YES IT'S A. A.
LET ME GO THROUGH A BE.
FARM WOULD LIKE TO NOT INCLUDED
WILL CERTAINLY CONSULT WITH THE
BANKING COMMISSIONER ON THIS.
BUT WE WE WE CIRCLE BACK WITH
THE LEDGE COUNCIL INCLUDE ALL
SELECTED SECTIONS OF FINANCIAL
QUARTER BANKING CREDIT UNION LAW
PATTERN ON BUT A DISTINCT FROM
THESE TWO LAWS IT. WE JUST THINK
THAT THAT WE'VE REFERENCE THE
ONES WE'VE WE'VE CHECKED WITH
THE PUT WITH LEDGE COUNCIL A
COMMITTEE THAT ALL CIRCLE BACK
WITH THEM BUT THIS RESULT IN
SORT OF A SMALL BILL WHICH WAS
THE INTENTION. TO BUILD LITTLE
APART ME THREE OR FOUR HUNDRED
PAGES SO WE'LL TAKE A LOOK AT
THAT AND CIRCLE BACK WITH MISTER
CHAIRMAN AT THIS TIME I DO NOT
WANT TO TAKE THAT AMENDMENT TO
STICK TO ONE YOU'RE TAKING THEM
PLEASE OKAY SEE. CLARIFYING THE
USE OF CHECKING ACCOUNTS FOR
PAYING RENT WILL TAKE THAT. DE
ALLOWING INDIVIDUALS WHO DID NOT
HAVE AN ACCOUNT WITH THE BANK TO
CASH A CHECK AT THE BANK OF
COURSE WILL TAKE THAT.
WE'VE CLARIFIED WITH YOUR STAFF
NEEDS THE AUTHORIZING THE
BANKING COMMISSIONER. BUT TIM TO
US NOT TO DEMAND MODIFYING FEES
BUT THIS IS REALLY A
TRANSPARENCY PIECE THAT THE
BANKING COMMISSIONER COLLECTS
WHAT EVERYBODY CHARGES SO
EVERYBODY CAN AND ARE.
SEE WHAT THEY'RE BEING CHARGING
THEY CAN SHOP WHERE THEY WANT TO
SHOP THAT'S A BUT CONSUMER
PROTECTION TRANSPARENCY BUT
PROVISIONS WE TALK ABOUT IT.
WHICH WILL ACCEPT IN THAT
REGARD.
F. TECHNICAL AMENDMENTS OF
COURSE AND LASTLY ON.
GOOD GRANTING THAT THE THE THE
OF THE IDEA OF DELAYING THE
OPERATIVE DATE AGAIN BECAUSE OF
THE WE FEEL THAT THAT IS A.
BUT I CHAIR OF THE BOARD OF
EQUALIZATION INDICATED THIS
SENSE OF URGENCY TO THAT I DON'T
HAVE ANY INDICATION FROM THE
BANKING COMMISSIONER'S OFFICE
AND YOU THE LAWYERS THEY SPOKE
TO. THAT THERE'S A NEED FOR
URGENCY I WAS ACTUALLY HOPING TO
TRY TO GET THIS DONE THAT EITHER
I AS I INDICATED TO YOU MISTER
CHAIRMAN. HE'S IN THE FORM OF A
TRAILER BILL OR IN THE FORM OF
A.
.
THE URGENCY BILL TO GET THIS
THING OUT AS QUICKLY AS POSSIBLE
BUT OUR COMMITTEE WAS I HAVE TO
TO GO AND CIRCLE BACK WITH THE
NECESSARY GOVERNMENT AGENCIES
AND IF THERE'S TIME FOR DELAY.
WILL CERTAINLY ENTERTAIN THAT I
I JUST THINK THAT AND I THINK
THAT THE FUTURE WOMAN INDICATED
THE SAME THING. THAT THAT.
URGENCY IS EVERYTHING BECAUSE
WE GOT TO GET THE SYSTEMS UP AND
RUNNING AND I THINK THERE'S A
REAL FROM THE PEOPLE WHO MY
SPOKEN. ISRAEL APPETITE TO TO TO
START A YOU KNOW A DOZEN OR SO
THESE BANKS AND WE THINK IT WILL
RELIEVE A LOT OF PRESSURE AS YOU
CORRECTLY INDICATED WITH RESPECT
TO BOTH. PUBLIC SAFETY ON THE
ONE HAND COLLECTING TAXES AND
AND ALSO THE THE ISSUE OF
ACCOUNTING.
THAT'S RIGHT VOTE THANK YOU.
CITY.
BOB JUST RESTATE YOUR.
AMID A.
SEE.
THE.
AND IF AND.
ANY WOOD MODIFICATION HE IS
MODIFIED YES YEAH THANK YOU. MEN
TODAY YES I THINK. MOM SECRETARY
OP PLEASE CALL ROLE WE HAVE A
MOTION FROM THE SENATE GALGIANI.
OKAY TO PASS AS AMENDED TO.
THE GOVERNMENT AND FINANCE OKAY
LOTION IS TO PASS WITH
AMENDMENTS TO BE TAKEN IN
GOVERNANCE AND FINANCE SENATOR
BRADFORD.
BY BRADFORD AYE BIDAK.
GAINES. GALGIANI. GALGIANI AYE
WESO. Y. SO I LARA PORTANTINO.
WE HAVE THREE.
THREE WILL BE ABOUT OPEN FOR
ABSENT MEMBERS I THINK YOU
CENTER HERTZBERG THANK YOU OUT.
BOARD MEMBER MA FOR YOUR
PRESENTATION.
NEXT UP IS.
.
BUT HURT FOR BECAUSE HE'S. SO.
YES IT ONE MORE.
THANK YOU.
YOU DO.
WHICH WILL DO ITEM TO S. B.
EIGHT THREE EIGHT
WHEN YOU'RE READY CENTER
ALREADY.
OKAY.
HOW MANY PEOPLE IN THIS
COMMITTEE?
HAVE HEARD THE TERM BLOCKCHAIN.
I DON'T WANT ACTUAL ANSWER BUT
THE NOTION BLOCKCHAIN IS
SOMETHING THAT NOT MANY PEOPLE
KNOW ABOUT AND MOST PLACES I'VE
GONE THEY THINK IT'S THE FENCE
AROUND YOUR SWIMMING POOL.
BUT IT IS PROBABLY THE MOST
DYNAMIC
A NEW SET.
DEALING WITH ORGANIZING THE
INTERNET HAS THE UNIT ITSELF.
AND WHAT I'M ENOUGH TO AND
TRYING TO THE BILL.
TO INTRODUCE IN THE SIMPLEST WAY
POSSIBLE THE NOTION OF
BLOCKCHAIN IN GOVERNMENT BECAUSE
THE WORLD OUT THERE IS SWEEPING.
AT A BREAKNECK SPEED.
START WITH THE NOTION OF A
BLOCKCHAIN ISN'T SIMPLE SENSE.
WHEN YOU LOOK AT THE INTERNET
OKAY IT'S LIKE A BIG SWIMMING
POOL AND TO GET INTO THE POOL
YOU HAVE TO HAVE ENCRYPTED CODE
YOU HAVE TO HAVE SOME TYPE OF
PASSWORD OR SOMETHING. BUT ONCE
YOU GET INTO THAT POOL OF
INFORMATION.
OVERSTATING THE CASE.
IT RIPS OFF OFF HEALTHCARE
RECORDS CREDIT RECORDS ALL KINDS
OF STUFF.
AND SO THE WAY THE BUT THAT'S
ONE OF THE REASONS WHY THERE'S
SUCH A SECURITY PROBLEM AND A
HACK ABILITY PROBLEM WITH THE
INTERNET.
WHAT'S THE BLOCKCHAIN THE
BLOCKCHAIN IS ORGANIZING EACH
PIECE OF DATA ON THE INTERNET
WITH UNIQUE IDENTIFIERS IT IS
LITERALLY A BLOCK AND THEIR
CHAINED TOGETHER. WHY IS IT SO
SECURE? EACH PICK.
PIECE OF DATA BIT OF DATA HAS A
TIME STAMP ON. IT HAS A UNIQUE
IDENTIFYING NUMBER. IT HAS A
UNIQUE NUMBER TO CONNECT TO THE
THE DATA BEFORE. IT HAS UNIQUE
NUMBER TO CONNECT TO THE NEXT
PIECE OF DATA
SO IT'S WICKEDLY COOL IN THE
SENSE OF PROTECTING HACK
ABILITY.
THAT'S THE REASON WHY WOULD YOU
HAVE HEARD ABOUT BLOCKCHAIN
YOU'VE HEARD AT THE CON.
NO CURRENCY AND BLOODSHED AND
AND THE. POINT BECAUSE THE WHOLE
NOTION IS IF YOU'RE GOING TO GO
OUT AND PRODUCE MONEY YOU BETTER
MAKE SURE THAT PRODUCES MONIES
PRETTY SECURE. SO PEOPLE OFTEN
COULD NOTE THE NOTION OF
BLOCKCHAIN WITH BITCOIN WHEN BIG
COIN IS JUST
EMPLOYEE ONE MINOR ELEMENTS.
ONE MINOR ELEMENT
OF THE BUSINESS.
IT COULD BE ANYTHING.
THEY TELL YOU TO BUY IS LOOKING
TO MAKE ITS ENTIRE GOVERNMENT
BASED UPON BLOCKCHAIN BY TWENTY
TWENTY.
LAST YEAR THE GREAT PROGRESSIVE
STATE OF WEST VIRGINIA.
ADOPTED VOTING USING BLOCKCHAIN
BECAUSE IF YOU CAN IDENTIFY WHO
THE VOTER IS IT'S THE MOST YOU
CAN DO IT ABOBO OPS CRUDE COOPER
THAT METHODOLOGY. OTHER STATES
ARIZONA ILLINOIS.
STILL ORNEA HAS E. GOVERNMENT
IT'S EXPLODING ALL OVER THE
PLACE
IT'S REALLY QUITE QUITE AMAZING
OF HOW.
EXTRAORDINARY THE NOTION OF
BLOCK CHAIR LOOKED UP ANGEL
INVESTORS IN THE ANGEL INVESTOR
WEBSITE SAYS. THAT THERE'S TWO
THOUSAND AND NINETY EIGHT COME
HE'S ON THE BLOCKCHAIN IN THE
LAST COUPLE OF YEARS.
WITH AN AVERAGE VALUATION OF
FOUR POINT FIVE MILLION DOLLARS.
SO WHAT'S HAPPENING OUTSIDE
THEIR SMART CONTRACTS IS ALL
SORTS OF EXTRAORDINARY THINGS
SO WHAT I WANTED TO DO. WHICH TO
YOU KNOW THIS GREAT PROGRESS
THAT'S GREAT STATE IS FORWARD
THINKING STATE OF CALIFORNIA
WERE WERE ALWAYS ON THE CUTTING
EDGE WE GOES FANCY SHE MEANS THE
COMPANIES.
TRYING TO ENGAGE GOVERNMENT IN
THE BLOCKCHAIN.
I WANTED TO DO VOTING I BEEN
WORKING WITH UCLA LABS AND
THEY'RE GONNA WOULD PROBABLY DO
A BILL NEXT YEAR ON BLOCKCHAIN
VOTING LIKE WEST VIRGINIA IS
BECAUSE WE WANT TO BE AT A WEST
VIRGINIA. ALTHOUGH THERE AHEAD
OF US.
.
I LOOKED AT THE IDEA OF LAND
TITLES.
ABOUT SOMEBODY WHO GOES AND GETS
OUR HOUSE AND FINDS OUT YOU KNOW
YOUR GRANDMA YOUR TIA IS OUT
THERE AND ALL OF A SUDDEN
SOMEBODY BUT RECORDED THE TO GET
YOUR HOUSE BECAUSE THEY'VE BEEN
THEY GOT A CORRUPT NOTARY. WHO
STAMPS A NOTARY SIGNAL BUT IT
WAS A BLOCKCHAIN MCCARTY XIN OF
TITLE HE COULDN'T HAPPEN?
SO I HAD TO FIND THE EASIEST
PLACE
TO GET INTO THE SYSTEM. THE
PLACE WHERE I THOUGHT THAT THAT
THE IT WAS SIMPLE ENOUGH AND
THAT WAS STOCK CERTIFICATES.
STOCK CERTIFICATES OF CLOSELY
HELD CORPORATIONS SO WHEN YOU GO
ON YOU FORMA COMPANY A CLOSELY
HELD COMPANY CLOSE COOPERATION
TO GO TO THE SECRETARY OF
STATE'S OFFICE THAT USED TO BE
HER BOX OWNERS NOW SO ONE PAGE
DOCUMENT. YOU FILE IT YOU DID
YOUR BOOK BICU BYLAWS IN YOUR
COMPANY AND IF YOU GET A
CORPORATION OR NOT AND THEN
MONTH EVERY YEAR YOU PUT IN.
YOUR YOUR YOUR MINUTES AND THEN
YOU HAVE YOUR DOMESTIC STOCK
STATEMENT AND YOU ISSUE SHARES.
SO ONLY IN THE CONTEXT OF NOT
STOCK EXCHANGE AREAS BUT JUST IN
THE EYES YEARS OF SIMPLE
COMPANIES I THINK WHEN THIS
THING HITS I JUST LAST WEEK IT
WAS IN ARIZONA. WITH A WHOLE
BUNCH OF BLOCKCHAIN PEOPLE THAN
A BLOCKCHAIN CONFERENCE.
AND AND THEY DON'T WANT TO DO
BLOCK CHAIN FOR THE SHARES NOW
WHAT IS THAT LOOK LIKE. IT'S NOT
REALLY A.
JUST AWAITING PUT MY TOE IN THE
WATER TO START THE DEBATE I WANT
TO JUST BE ABLE TO STAND THE
FORTHE SENATE AND TALK ABOUT
BLOCKCHAIN AND GET PEOPLE INTO
THIS. AND THIS IS THE EASIEST
WAY. SO NOW YOU HAVE A STOCK
CERTIFICATE IN THE OLD DAYS IN
THE BACK YOUR STOCK WILL GET A
LEDGER I SUSPECT HAVE
ACCOMPANIED THE U. S. STOCK YOUR
COMPANIES THAT YOU HAVE.
FEAR BASED BUSINESSES HILLAGE
AND YOU WRITE UP YOUR LEDGER AND
SAY WHAT IS THIS ALLOWS YOU TO
PUT YOUR STOCK CHAIN OF YOUR
YOUR YOUR YOUR YOUR STOCK LEDGER
IN A BLOCKCHAIN Y. SAID
IMPORTANT.
WHEN YOU FILE YOUR DOES A
CORPORATION WERE GOING TO SAY ON
THE ARTICLES OF INCORPORATION
THIS CORPORATION HAS A
BLOCKCHAIN A RELIGION. FOR
PURPOSES OF STOCK
SO I KNOW WHAT I WANT TO BE A
THIEF LIKE THEY WERE IN SAN
FRANCISCO HAD A DEAL HERE FEW
YEARS AGO WHY DO THE BILL FOR
THE TREASURES OFFICE AND
SOMEBODY. DID A PHONY BALONEY
ACCOUNT THEY STOLE THE CHECKS
FROM THE COMPANY.
AND THEY PUT THE MONEY IN THE
ACCOUNT BECAUSE THEY SAID THAT
THEY OWN THE COMPANY WHAT DO
THEY DO THEY WENT TO THE BANK
WITH THEIR ARTICLES OF
INCORPORATION THEY WENT TO THE
BANK WITH A PHONY BALONEY
UNANIMOUS WRITTEN CONSENT. AND
THE STOCK CERTIFICATE THE BANK
SAID OKAY YOU'RE THE COMPANY
OFFICER WILL OPEN UP AN ACCOUNT
HE STOLE THE CHECKS
WE HAVE ANOTHER CASE OF
CALIFORNIA CORPORATION WHERE
SOMEBODY WAS ISSUING FRAUDULENT
CERTIFICATES.
RIGHT SO IN THE NEAR TERM THE
SIMPLE VALUE TO THIS THING WAS
IT WOULD I GOT THE NAME OF THE
COMPANY HERE I SHOULD HAVE IN
FRONT OF ME AND MY NOTES. BUT
THE POINT IS THAT.
WHETHER IT'S FRAUDULENT STOCK
CERTIFICATES COULD YOU GOT THOSE
BOOKS YOU BUY YOU JUST TEAR IT
UP THE BACK SIGNS OF THESE NAMES
HIM SELLING SHARES. WE SAW THAT
HAPPEN OR YOU CAN GO AND STEELED
CHECKS.
AND AND THIS WAY WHEN YOU GO TO
THE BANK OR IF YOU WANNA SELL
SHARES YOU GOTTA SEAN'S. THE THE
ARTICLES OF INCORPORATION THAT
WILL SAY THERE'S A BLOCKCHAIN
LEDGER SOMEBODY'S GONNA SAY SHOW
ME THE BLOCKCHAIN LEDGER NOW
UNLESS THE SECRETARY THE
CORPORATIONS IN CAHOOTS IS DOING
IT. IT'S GONNA BE VERY HARD TO
DO SO THIS IS A VERY SMALL STEP.
BUT TO BEGIN THAT PROCESS I'M
TELLING YOU THAT IN LOS ANGELES
THE CITY OF LOS ANGELES IS
STARTED.
A BLOCKCHAIN LAB WITH USC AND
UCLA BERKELEY HAS DONE IT. EACH
WEEK
BLOATING AND ALL I WANNA DO IS
TO GET US IN THE GAME. AND I'M
GONNA GO TAKE THIS TO SILICON
VALLEY AFTER IT PASSES AND AND
AND TRY TO GET SOME ARTICLES ON
LOCAL PAPERS TO SEE AS THESE IN
START UP COMPANIES HAPPEN WITH
THE BILL START. USING BLOCKCHAIN
LEDGERS IT'S A SMALL STEP.
IN TERMS OF THE BUT IT'S A WAY
TO DEAL WITH SOMETHING IT'S IT'S
COMPLICATED OF AN ISSUE AND
BRING IT INTO THE CHALLENGES OF
GOVERNMENT ASK YOUR SUPPORT OF
THIS MEASURE.
THANK YOU WITNESSES SUPPORT.
REVENUE HEALTHCARE MEMBERS AS
GREAT A BEHALF OF CIRCLE
INTERNET FINANCIAL LINK IN
STRONG SUPPORT OF THE BILL
PROBABLY SENATOR THANK YOU
THINGS MAKE YOU BRING SURVEYS.
THAT ARE RIGHT.
WITNESSES IN OPPOSITION.
OKAY WHAT IS IMMINENT.
CREDIT.
WE HAVE BEEN IN SCHOOL YET
EXCEPT THE MOMENT YES PUBLIC
SUPPORTED ONE YOUNG TECHNICAL
AMENDMENTS IN ANNOUNCES THAT AYE
AYE SENATORS CITING WRITING SO.
I RIGHT.
I THINK.
YOU'VE CLOSED THAT'S IT AND
HERTZBERG. HE MADE EARLY I GOT
THAT WE HAVE A MOTION BY SENATOR
AWAY SO TO PASS TO. JUTISH.
WITH THE AMENDMENTS TECHNICAL
AMENDMENTS TO BE TAKEN INTO JHED
JUDICIARY. MADAM SECRETARY
PLEASE CALL THE ROLL.
MOTION IS TO PASS WITH
AMENDMENTS TO BE TAKEN IN
JUDICIARY SENATOR BRADFORD AYE
AYE BRADFORD AYE FIGHT ACT ALL.
MY NECK AYE GAINES GALGIANI.
HUESO. WITH SO I LARA
PORTANTINO.
PORTANTINO I.
WATER. THANK YOU EVERY PLAYER
APPRECIATE LIKE AS CHAIRMAN
THANKING GOD.
BUT THIS WAS SENATOR GLAZER ARE
YOU READY YEAR.
AND ILOG.
WE HAVE I DON'T A S. B. TWELVE
THIRTY FIVE.
WHEN YOU'RE READY WE'RE READY.
JANUARY.
THIS BUDGET.
THE STAFF.
THANK YOU MISTER CHAIRMAN AND
MEMBERS.
TODAY I'M PRESENTING THIS.
.
VERY IMPORTANT SENATE BILL
TWELVE THIRTY FIVE WHICH WOULD
PLACE SOME SIMPLE DISCLOSURE
REQUIREMENTS.
FUND LOANS AND OTHER FINANCING
FOR CALIFORNIA SMALL BUSINESS.
BOB FIRST MISTER CHAIRMAN I WANT
TO THANK YOUR STAFF WHOSE WORK%
WITH. MY TEAM ON A LOT OF THESE
ISSUES AND THEY'RE CERTAINLY.
.
AT GREAT EXPERTISE THERE AND I
APPRECIATE EILEEN ALL OF YOUR
HELP ON THIS.
MEMBERS IS YOU KNOW DISCLOSURE
HAS BEEN A REQUIRE A
REQUIREMENT.
TOP FOR CONSUMER FINANCIAL
TRANSACTIONS FOR DECADES SINCE
CONGRESS ENACTED THE TRUTH IN
LENDING ACT IN NINETEEN SIXTY
EIGHT.
FOR THE MOST PART THESE RULES DO
NOT APPLY TO COMMERCIAL LOANS.
THE THEORY HAS BEEN THAT
BUSINESS OWNERS ARE SAVVY
ENOUGH.
TO FIGURE THESE THINGS OUT ON
THEIR OWN.
UNFORTUNATELY THAT IS NOT ALWAYS
THE CASE
IT'S ESPECIALLY NOT TO A SMALL
BUSINESS.
WHICH ARE OFTEN RUN BY
ENTREPRENEURS OPERATING ON A
SHOESTRING WITH LITTLE
EXPERIENCE.
AND SOMETIMES ARE A LITTLE
EDUCATION.
ESPECIALLY IN CALIFORNIA MORE
AND MORE SMALL BUSINESS OWNERS
ARE IMMIGRANTS
TRYING TO BUILD A BETTER LIFE
FOR THEMSELVES AND THEIR
CHILDREN.
IN RECENT YEARS WE'VE SEEN AN
EXPLOSION AND FINANCING OFFER TO
SMALL BUSINESS AND ACCESS TO
CREDIT.
PEOPLE WHO OFTEN CANNOT QUALIFY
FOR A TRADITIONAL BANK LOAN.
THE BAD NEWS IS THAT THE
FINANCING PRODUCTS BEING OFFERED
CAN BE VERY COMPLEX
DIFFICULT TO UNDERSTAND. AND
ALMOST IMPOSSIBLE TO COMPARE TO
ONE ANOTHER.
A STUDY BY THE FEDERAL RESERVE
BANK OF CLEVELAND FOUND THAT
MOST SMALL BUSINESS BORROWERS DO
NOT UNDERSTAND THE FINANCE
INDUSTRY. AND DON'T KNOW HOW TO
DETERMINE THE TRUE COST OF THE
OFFERS THAT ARE PRESENTED TO
THEM.
THAT SAME STUDY FOUND THAT EVEN
WHEN BUSINESS OWNERS THINK THEY
UNDERSTAND THE TRUE COST OF
FINANCING.
THEY'RE OFTEN WRONG.
THIS BILL TAKES A LOT OF STEP
TOWARD SOLVING THAT PROBLEM
IT DOESN'T REGULATE THE TYPE OF
FINANCIAL PRODUCT THAT CAN BE
OFFERED IN CALIFORNIA.
OR LIMIT THE COST OF THOSE
PRODUCTS TO BORROWERS.
IT SIMPLY SAYS THAT OF A
COMMERCIAL FINANCE COMPANY
OPERATES IN OUR STATE.
THAT COMPANY MUST DISCLOSE SIX
BASIC FACTS
AT THAT TIME THEY MAKE AN OFFER
TO A POTENTIAL CUSTOMER.
WHAT ARE THOSE SIX FACTS AND WE
HAVE HE ILLUSTRATED HERE?
THE TOTAL AMOUNT OF FUNDS
PROVIDED.
THE TOTAL OF PAYMENTS OF THE
RECIPIENTS GOING TO HAVE TO PAY.
THE TOTAL NET COST OF THE
FINANCING.
WHICH IS THE DIFFERENCE BETWEEN
HOW MUCH THEY'RE GETTING AND HOW
MUCH THEY MUST REPAY.
THE AMOUNT THE RECIPIENT WILL
HAVE TO PAY DAILY WEEKLY OR
MONTHLY.
THE ANNUAL PERCENTAGE RATE OR
APR.
AND ANY PREPAYMENT PENALTY
EMBEDDED IN THE FINANCE
CONTRACT.
THE BILL REQUIRES THAT THESE
TERMS WE DISCLOSE THAT THE TIME
AN OFFER IS MADE.
NOW THIS TIMING IS GOOD.
CRUCIAL BECAUSE IT'S THE ONLY
WAY TO ALLOW A SMALL BUSINESS
PERSON TO USES INFORMATION TO
COMPARE OFFERS FROM COMPETING
COMPANIES.
VERY IMPORTANT THE ONLY WAY THEY
CAN COMPARE OFFERS FROM
COMPETING COMPANIES.
YEAH FINALLY LET ME SAY THAT I
APPRECIATE THE POINTS MADE IN
THE COMMITTEE ANALYSIS THE BILL.
AND EXCEPT ALL THE SUGGESTED
AMENDMENTS.
BUT EXCEPT FOR THE LAST ONE
WHICH IS THE STRIKE THE
REQUIREMENT THAT EIGHT P. OUR BE
ONE OF THE ITEMS IN THE PROPOSED
DISCLOSURE. I DO BELIEVE THAT A
PR IS AN IMPORTANT TOOL THAT
HELPS BORROWERS UNDERSTAND THE
TRUE COST THEIR FINANCING.
FINALLY THERE A TO ADDITIONAL
CLARIFYING AMENDMENTS I WOULD
ACCEPT. IN DRAFTING THE BILL WE
DID NOT INTEND TO COVER EITHER
REAL ESTATE LOANS OR EQUIPMENT
LEASING.
AT SOME OF SUGGESTED THAT THIS
IS NOT CLEAR IN THE BILL SO WERE
VERY OPEN TO STATING THAT
EXPLICITLY.
TYPE TWO WITNESSES HERE TO. HELP
ME SMARTER THAN ME ON THIS STUFF
INTO TO SPEAK IN FAVOR THE BILL
THE VIKING.
IS BOTH A SMALL BUSINESS
ENTREPRENEUR AND A FORMER SMALL
BUSINESS LENDER HIMSELF.
AND IS NOW CEO OF NAB DOT COM
WHICH HELP SMALL BUSINESS
EVALUATE THE MANY OFFERS ARE
FACED WITH ONTHE INTERNET. AND
JOHN AHRENS MEYER IS CEO OF
SMALL BUSINESS MAJORITY WHICH
FIGHTS FOR ACCESS TO CAPITAL FOR
FOR AMERICA'S SMALL BUSINESSES.
THANK YOU MISTER CHAIRMAN AND
THE COMMITTEE MEMBERS FOR GIVING
US TIME TODAY.
I APPRECIATE THE OPPORTUNITY TO
OFFER MY SUPPORT FOR US.
BE TWELVE THIRTY FIVE BECAUSE I
BELIEVE THIS BILL IS AN
IMPORTANT STEP TOWARDS HELPING
SMALL BUSINESS OWNERS MORE
EASILY COMPARE SOURCES OF
CAPITAL LEGISLATION LIKE THIS IS
ABSOLUTELY NECESSARY AND
CRITICAL.
NOW THE OFFERS A FREE CREDIT
FINANCIAL EDUCATION PLATFORM TO
IN TWO MORE THAN THREE HUNDRED
AND SEVENTY THOUSAND ACTIVE CUP
CUSTOMERS ACROSS THE COUNTRY.
THIRTY FIVE THOUSAND WHICH ARE
LOCATED IN THE STATE OF
CALIFORNIA IN CALIFORNIA THAT
NUMBER GROWS BY ONE THOUSAND
MONTH.
IT THE RISE OF NEW INNOVATIVE
SMALL BUSINESS LENDING SOLUTIONS
IS WELL DOCUMENTED AND I'VE HAD
A FRONT ROW SEAT TO THESE
CHANGES WELL THE CEO OF NAV AND
PRIOR TO THAT CO FOUNDER PLENTY
OF THE NATION'S LARGEST ONLINE
BUSINESS LENDING BROKER
MARKETPLACE. UNLIKE WITH
CONSUMER PROTECTION FOR THE MOST
PART SMALL BUSINESS CAPITAL
PROVISIONING IS UNREGULATED
THERE'S NOT A HIGH STANDARD FOR
WHO CAN SET UP SHOP AS A
PROVIDER. THIS IS LED TO A FEW
BAD APPLES TAKING ADVANTAGE OF
SMALL BUSINESS OWNERS WERE
DESPERATE FOR CAPITAL BUT DON'T
UNDERSTAND THE TRUE COSTS
INVOLVED. BY PERSONAL DISEASE
NOTICE THESE ISSUES DURING MY
TIME IT WENT YOU WE HAD HUNDREDS
OF THOUSANDS OF SMALL BUSINESSES
COME THROUGH OUR MODEL. AND ONLY
THREE TO FIVE PERCENT COULD GET
ACCESS TO CREDIT THAT ATTRACTIVE
COSTS
ABOUT HALF OF THE REST. GET
ACCESS CAPITAL BUT WAS QUITE
EXPENSIVE IN THE REST COULDN'T
GET ANYTHING FROM ANY OF OUR
PROVIDERS. AND WE WERE THE GOOD
GUYS. I ALSO UNDERSTAND THE
PROBLEM OF INCLUDE DISCLOSURES
FOR STAND AS AN ENTREPRENEUR
THAT STARTED SEVEN SMALL. BIZ
AND TEASE ME SEVEN SMALL
BUSINESSES IN FOUR STATES ACROSS
TWENTY YEARS AND TOOK OVER
THIRTY TYPES OF COMMERCIAL
FINANCING FOR THESE BUSINESSES.
ACCESSING CAPITAL WAS THE MOST
DIFFICULT THING THAT I DEAL WITH
THE CROSSED ALL OF THOSE
BUSINESSES HAVE LIVE WITH THE
PAIN OF TRYING TO FIGURE OUT
COMPLICATED FINANCING DOCUMENTS.
IF YOU HAVEN'T EXPERIENCED IT.
IT'S EASY TO SAY THE BORROWERS
WILL FIGURED OUT THEY KNOW WHAT
THEY'RE DOING WHAT'S JUST LET
MARKETPLACE COMPETITION DICTATE
THE WINNERS. THE PROBLEM IS TIME
STARVED BUSINESS OWNERS SIMPLY
TAKE THE BEST MARKETED OR THE
BEST SOLD PROFIT PRODUCT NOT THE
ONE THAT'S BEST FOR THEIR
SITUATION.
IF YOU NEED TO MAKE PAYROLL IN A
FEW DAYS YOU CAN'T SPEND HOURS
DISCIPLE TERMS AND CONDITIONS.
THE CAPITAL OPTION THAT'S WHY I
ALSO BELIEVE THE DISCLOSURES
REQUIRED BY THIS BILL NEED TO BE
MADE AVAILABLE AT THE TIME OF
THE OFFER. IT'S YOU ONLY WAY THE
RECIPIENTS CAN TRULY TAKE TIME
TO EVALUATE DIFFERENT OFFERS. IF
WE ALLOW SALES REPS TO GLOSS
OVER THE TERMS IN THE QUICKLY
PRESENT THE CONTRACTUAL TERMS OF
THE TIME OF CLOSING THAT IT'S
TOO LATE.
ULTIMATELY I BELIEVE SMALL
BUSINESS OWNERS SHOULD HAVE THE
RIGHT TO CALL THEIR OWN SHOTS
THIS ISN'T ABOUT REGULATING THE
COST OF BUSINESS LOANS WHICH WE
WOULD NOT SUPPORT. THEIR
LEGITIMATE TIMES WERE TRIPLE
DIGIT.
PERCENTAGE COST OF FINANCING IS
A SMART DECISION FOR BUSINESS
OWNERS EPIC TERMS ARE
TRANSPARENT THE BUSINESS OWNER
MAKES A BAD DECISION BUT THAT'S
ON THEM.
ACCLAIM EDUCATING A SMALL
BUSINESS OWNER ON THE TRUE COST
OF CAPITAL IT IS A HARM TO THEM
IS SIMPLY RIDICULOUS.
THAT'S WHY IT'S CRITICAL THAT
APR OR AN ESTIMATED A PR
DEPARTED THE DISCLOSURE
REQUIREMENTS APR IS THE ONLY
CALCULATION WE HAVE. THAT ALLOWS
FOR A TRUE APPLES TO APPLES COST
COMPARISON ACROSS DIFFERENT
TYPES OF CAPITAL IF THAT FORCES
THE PROVIDER TO PROVIDE EXPLAIN
WHY THERE ESTIMATED EP ARE SO
HIGH. AND THE DIFFERENCE BETWEEN
THE BENEFITS OF SHORT TERM AND
LONG TERM CAPITAL BUT SO BE IT
IT'S BETTER THAN THE CURRENT
SYSTEM THE PUTS ALL THE BURDEN
ON THE SMALL BUSINESS OWNER.
THESE ARE.
HER CLAIMS THAT THEIR MORE
SOPHISTICATED CONSUMERS THAT'S
TRUE IN THE RULES OF BAKER. THEY
FOOD VENDOR OR A BRICKLAYER BUT
IT'S NOT TRUE THAT RELATES TO
MAKING DECISIONS ABOUT BORROWING
TENS OF THOUSANDS OF HUNDREDS OF
THOUSANDS OF DOLLARS. THAT COULD
BREAK THEIR BUSINESSES BACK RUIN
THEIR FAMILY IT HARM THEIR LOCAL
COMMUNITIES. MY COMPANY HAS AN
INTERESTING POSITION IN THIS
ARGUMENT ABOUT A LENDER. THAT
WE'RE NOT ALONE BROKER WE SIMPLY
EDUCATE THEM ON THE CREDIT BUT
ABSOLUTELY TO.
TO MAKE IT MAKE THE BEST
DECISIONS POSSIBLE. ON BEHALF OF
MY ONE HUNDRED TEAM MEMBERS IT
NOW. OR THIRTY FIVE THOUSAND
CUSTOMERS BASED OF THE STATE OF
CALIFORNIA. IN THE FIFTEEN
THOUSAND.
SHE'S WITH AS LITTLE. CLOSE TO
MY HEART SO.
PLEASE FORGIVE ME HOW.
THE FIFTEEN THOUSAND SMALL
BUSINESS ORDERS.
WHEN YOU ALSO GET APPROVED
REPORT HAD SUGGESTED CALIFORNIA.
BUT I WHOLEHEARTEDLY SUPPORT.
S. B. TWELVE THIRTY FIVE.
PICK BRADFORD A VICE CHAIR BIDAK
AND MEMBERS OF THE COMMITTEE I'M
JOHN ARMS MYRON LONGTIME
ENTREPRENEUR AND THE FOUNDER AND
CEO OF SMALL BUSINESS MAJORITY.
A TWELVE YEAR OLD A NATIONAL
CALIFORNIA BASED NATIONAL SMALL
BUSINESS ADVOCACY ORGANIZATION.
I'M MORE PLEASED TO OFFER
TESTIMONY TODAY IN SUPPORT OF SB
TWELVE THIRTY FIVE SLUDGE'S
SECTIONAL ENSURE ALL OF
CALIFORNIA SMALL BUSINESSES AND
SELF EMPLOYED ENTREPRENEURS HAVE
ACCESS TO RESPONSIBLE CAPITAL.
WE ARE ALSO FOUNDING MEMBERS OF
THE RESPONSIBLE BUSINESS LENDING
COALITION ARE ARE BLC.
A NETWORK OF FOR PROFIT AND
NONPROFIT LENDERS BROKERS AND
SMALL BUSINESS ADVOCATES
COMMITTED TO MAKING CREDIT MORE
ACCESSIBLE AND PROTECTING SMALL
BUSINESS BORROWERS FROM
PREDATORY. AND IRRESPONSIBLE
LENDING PRACTICES THROUGH THE
RBL SEE WE HAVE WORK TO DEVELOP
THE SMALL BUSINESS BORROWERS
BILL OF RIGHTS WHICH IDENTIFIES
FUNDAMENTAL RIGHTS THAT ALL
SMALL BUSINESS OWNERS DESERVE.
INCLUDING THE RIGHTS A
TRANSPARENT TERMS AND PRICING.
WE KNOW THAT ACCESS TO CAPITAL
IS A TOP CONCERN FOR CALIFORNIA
SMALL BUSINESSES. ARE POLLING
HAS FOUND OF THE NINETY PERCENT
OF SMALL BUSINESS OWNERS AGREE
THAT THE AVAILABLE FINANCING IS
A BIG PROBLEM.
INDEED. SBA LENDING FELL MORE
THAN SIXTY PERCENT IN THE STATE
BETWEEN TWO THOUSAND SEVEN IN
TWENTY THIRTEEN.
IT IS IMPORTANT TO NOTE THAT
ACCESS TO CAPITAL TO SUPPORT
SHIRLEY AFFECTS WOMEN
ENTREPRENEURS AND MINORITY
BUSINESS OWNERS WHO RECEIVE JUST
FOUR POINT FOUR PERCENT AND FIVE
POINT FIVE PERCENT OF
CONVENTIONAL SMALL BUSINESS
LOANS RESPECTIVELY.
AS SUCH WE WELCOME THE EMERGENCE
OF ONLINE LENDING AND OTHER
ALTERNATIVE FORMS OF NON BITE
BACK FINANCING IS IMPORTANT
OPPORTUNITIES TO FILL THIS GAP.
BUT AT THE MOMENT MOST OF THESE
NEW TYPES OF FINANCING ALMOST
COMPLETELY UNREGULATED.
ANOTHER POLL THAT WE CONDUCTED
FOUND THAT SEVENTY ONE PERCENT
OF SMALL CALIFORNIA SMALL
BUSINESS OWNERS BELIEVE THAT
WHILE ONLINE SMALL BUSINESS
LENDING IS OPEN UP NEW SOURCES
OF CAPITAL. THESE LENDERS SHOULD
BE REGULATED WITH EIGHT IN TEN
SUPPORTING A CLEAR DISCLOSURE OF
RATES AND FEES.
S. B.. TWELVE THIRTY FIVE WILL
DRAMATICALLY INCREASE
TRANSPARENCY GIVING SMALL
BUSINESSES THE ABILITY TO
COMPARE PRODUCTS AND MAKE
INFORMED BORROWING DECISIONS
WHILE PROTECTING THEM FROM
UNSAFE OR PREDATORY LENDERS.
WE ALSO SUPPORT ALL OF THE
TWENTY STAFF RECOMMENDED
AMENDMENTS.
REGARDING A PR WE RECOMMENDED
NOT REMOVING IT BUT OF FOR THE
SAME REASONS YOU'VE HEARD
ALREADY WE RECOMMEND REQUIRING
THE DISCLOSURE OF A P. R.
ESTIMATED EP OURS IS THE BEST
WAY TO ENABLE BARS TO MAKE AN
APPLES TO APPLES. COMPARISON
ALONG PRODUCTS BUT WE DO SUPPORT
THE STAFF'S RECOMMENDATION TO
CLARIFY THE LANGUAGE GOVERNING
THE CALCULATION OF IT APR. TWO
SHORT SIMPLE PROCESS THAT CAN
APPLY ACROSS ALL SORTS OF LOAN
PRODUCTS. IN CONCLUSION
ALTERNATIVE LENDING OFFERS
EXCITING INNOVATIVE FINANCING
OPPORTUNITIES FOR SMALL
BUSINESSES BUT THESE NEW
PRODUCTS CANNOT CONTINUE TO.
EXIST IN UNREGULATED SPACE THANK
YOU NOTE FOR TO ANSWER ANY
QUESTIONS YOU HAVE THANK YOU I
NEED TO SHOW WITNESSES IN
SUPPORT.
IF YOU FORM TO THE RIGHT.
MISTER CHAIRMAN SCOTT REALTY
QUIT LEASING AND FINANCE
ASSOCIATION I WANT TO THANK THE
SPONSOR AND HIS STAFF. FOR
UNDERSTANDING OUR CONCERNS WE
REALLY APPRECIATE THE AMENDMENT
WE DO ABOUT A HUNDRED AND THIRTY
FOUR BILLION DOLLARS WORTH OF
EQUIPMENT FINANCING IN THE STATE
OF CALIFORNIA. IS A WONDERFUL
STATE WE APPRECIATE. THE
PARTNERSHIP WE HAVE WITH
EVERYONE. THANK YOU SO MUCH
THANK YOU.
ALRIGHT WITNESSES IN OPPOSITION
WILL TAKE TWO PRIMARY AT THE
TABLE.
YEAH RIGHT.
HELLO.
YEAH.
CHAIRMAN BRADFORD AND COMMITTEE
MEMBERS THANK YOU FOR THE
OPPORTUNITY TO PRESENT TESTIMONY
TODAY REGARDING SP TWELVE THIRTY
FIVE.
MY NAME IS KATE FISCHER AND I'M
HERE TODAY ON BEHALF OF THE
COMMERCIAL FINANCE COALITION.
THE GROUP RESPONSIBLE FINANCE
COMPANIES TO PROVIDE CAPITAL TO
SMALL AND MEDIUM SIZED
BUSINESSES FOR INNOVATIVE
METHODS.
SMALL BUSINESSES FACE A GAP IN
CREDIT AVAILABILITY.
COMMERCIAL FINANCE COALITION
MEMBER COMPANIES ARE TRYING TO
CLOSE THIS GAP AND HELP SPUR
ENTREPRENEURSHIP.
SOME MORE AMERICANS AND
CALIFORNIANS CAN OWN AND OPERATE
THEIR OWN BUSINESSES.
I ALSO A LAWYER WHO WORKS WITH
PROVIDERS ACROSS ALL FINANCING
ON COMPLYING WITH STATE AND
FEDERAL LAW.
THE COMMERCIAL FINANCE COALITION
SUPPORTS CALIFORNIA'S EFFORTS TO
MAKE BUSINESS FINANCING MORE
TRANSPARENT.
HOWEVER THE COMMERCIAL FINANCE
COALITION OPPOSES REQUIRING ANY
P. R. DISCLOSURE.
IT'S IMPORTANT TO NOTE THE SP
TWELVE THIRTY FIVE AIMS AT
PROVIDING COMPARABLE DISCLOSURES
ACROSS VERY DIFFERENT FINANCING
TYPES.
COMMERCIAL FINANCE COALITION
MEMBERS MOSTLY ENGAGE IN
ACCOUNTS RECEIVABLE PURCHASE
TRANSACTIONS.
THESE TRANSACTIONS ARE ALSO
KNOWN AS MERCHANT CASH ADVANCE
REFACTORING.
IN BAB A BUSINESS SELLING ITS
RECEIVABLES AT A DISCOUNT.
FOR EXAMPLE. THE BUSINESSES
HILLS GO DOWN THE BUSINESS
CAMPAIGN LAST.
IF A BUSINESSES SALES GO UP THE
BUSINESS COMPETE MORE.
IF A BUSINESS IS BURNED DOWN IN
A FIRE THE BUSINESS CAMPAIGN
NOTHING UNTIL IT CAN REOPEN AT
STORES.
S. B. TWELVE THIRTY FIVE WOULD
REQUIRE DISCLOSURE OF AN ANNUAL
PERCENTAGE RATE OR APR.
THERE TO PROBLEMS WITH REQUIRED
IN APR DISCLOSURE OR EVEN AN
ESTIMATED APR.
FIRST SP TWELVE THIRTY FIVE
FAILS TO ADDRESS THE COMPLEXITY
OF CALCULATING THE PR FOR
DIFFERENT TYPES OF COMMERCIAL
FINANCE TRANSACTIONS.
THIS CREATES A SIGNIFICANT
LITIGATION RISK
AT A MINE FIELD FOR FINANCE
PROVIDERS MAKING A GOOD FAITH
EFFORT TO DISCLOSE A PR. AND MAY
STIFLE SMALL BUSINESS FINANCING
IN CALIFORNIA.
SECOND REQUIREMENT ESTIMATED APR
DISCLOSURE CREATES AN UNFAIR
DISADVANTAGE FOR OFFERS OF
ACCOUNTS RECEIVABLE PURCHASE
TRANSACTIONS WERE FACTORING.
AGAIN THESE FOR THESE
TRANSACTIONS OUR PURCHASES AND
NOT AND THEY DO NOT NEED TO BE
PAID BACK UNLESS A BUSINESS HAS
SUFFICIENT SALES.
ALSO THIS DISCLOSURE COULD
CONFUSE A BUSINESS OWNER WHO'S
LOOKING FOR ALTERNATIVES TO
LENDING.
I AM VERY OPTIMISTIC THAT
CALIFORNIA CAN LEAD THE WAY IN
PROVIDING BUSINESSES WITH
DISCLOSURES ARE HOPEFUL AND NOT
CONFUSING. THANK YOU.
THE CHAIRMAN OR EFFORT AND
MEMBERS OF HE COMMITTEE TIME
JOSEPH FLAMINI AND I AM THE
GENERAL COUNSEL FOR A COMMERCIAL
FINANCE COMPANY NAME RAPID
ADVANCE.
WE ARE A CALIFORNIA FINANCE
SLENDER LICENSE XENA PRO
PROVIDED MORE THAN TWO HUNDRED
MILLION CAPITAL TO THOUSANDS OF
BUSINESSES IN CALIFORNIA.
TODAY IN PROVIDING TESTIMONY ON
BEHALF OF THE SMALL BUSINESS
FINANCE ASSOCIATION OR S. B. IF
A WHICH IS THE LEADING
ASSOCIATION FOR COMPANIES TO
PROVIDE FUNDING TO MAIN STREET
BUSINESSES.
THE S. B. A PHASE IN OPPOSITION
TO SENATE BILL TWELVE THIRTY
FIVE AS CURRENTLY DRAFTED.
WELL THERE ARE VARIOUS ISSUES
WITH THE BILL THE OVER ARCHING
CONCERN WE HAVE IS THAT IT TREAT
SMALL BUSINESSES LIKE CONSUMERS.
STATES AND THE FEDERAL
GOVERNMENT HAVE GENERALLY REFUSE
TO TREAT SMALL BUSINESSES THE
SAME AS CONSUMERS WHEN IT COMES
TO FINANCING DISCLOSURES FOR TWO
REASONS.
FIRST THERE IS A SIGNIFICANT
SERRANO IMPOSING CONSUMER
DISCLOSURES AND REGULATIONS
SMALL BUSINESSES WOULD REDUCE
THE FLOW OF CAPITAL AND
NEGATIVELY IMPACT THE ECONOMY.
SECOND SMALL BUSINESS OWNERS ARE
SOPHISTICATED AND DO NOT NEED
THE SAME PROTECTIONS PROVIDED TO
CONSUMERS. BUSINESS OWNERS HIRE
AND FIRE EMPLOYEES HANDLE TAXES
AND PAYROLL NEGOTIATE WITH
CUSTOMERS AND VENDORS ARRANGE
FINANCING HANDLE LITIGATION AND
EXECUTE ON BUSINESS STRATEGIES
EVERYDAY.
ALSO BUSINESSES LOOK AT MONEY
DIFFERENTLY THAN CONSUMERS.
THEY USINESS GETS CAPITAL IN
USES IT TO MAKE MONEY MAKE MORE
MONEY OR SOLVE A PROBLEM IN
THEIR BUSINESS. IN THIS SCENARIO
THE MOST IMPORTANT ITEM TO THE
BUSINESS OWNERS HOW FAST CAN
THEY GET THE MONEY AND WHAT ARE
THE CONDITIONS FOR GETTING IT.
WE ARE VERY PARA DISCLOSURE
INCLUDED IN THE BILL'S
PROBLEMATIC AS IT WILL CREATE
CONFUSION.
THE CFPB HAS RECENTLY CONCLUDED
THE PR IS CONFUSING DOES NOT
PROVIDE AS MUCH VALUE AS THOUGHT
AND IS EXTREMELY COMPLICATED FOR
CREDITORS TO CALCULATE. IN FACT
THE CPB IS MAKING IT APPEAR LESS
IMPORTANT BY MOVING IT TO THE
END OF SOME DISCLOSURES AND
COMPLETELY REMOVING IT IN SOME
CASES. PP ARE SO COMPLICATED TO
CALCULATE THERE ARE NUMEROUS
PAGES IN THE CODE OF FEDERAL
REGULATIONS DEVOTED TO
EXPLAINING THE CALCULATION.
ADDITIONALLY THERE ARE PAGES OF
GUIDANCE ON HOW TO HANDLE
VARIOUS CONSUMER PRODUCTS AND
PAYMENT TYPES. AND WHAT
ASSUMPTION SHOULD BE MADE FOR
VARIOUS PRODUCTS THAT'S WHAT WAS
SHIELDING CREDITORS FRONT FROM
LIABILITY FOR MINOR APR
CALCULATION ERRORS. THIS BILL
DOES NOT ADDRESS ANY OF THESE
ISSUES THAT SIMPLY STATES IN A
PURE DISCLOSURE REQUIRED FOR
FIXED MONTHLY PAYMENT CONSUMER
FINANCE TRANSACTIONS.
SHOULD APPLY TO MATERIALLY
DIFFERENT COMMERCIAL PRODUCTS.
THE BILL ASSUMES THAT APR EQUALS
TRANSPARENCY. DESPITE THE FACT
THAT THE FEDERAL REGULATORS HAVE
CONCLUDED THAT A PR IS NOT
TRANSPARENT BUT CONFUSING. WHAT
WE DO NOT SUPPORT THE BILL AS IT
INTO AS IT IMPOSES CONSUMER
DISCLOSURE SUCH AS CPR ON SMALL
BUSINESS TRANSACTIONS? WE ARE
SUPPORTIVE OF THE IDEA OF
PROVIDING BUSINESSES WITH COST
DISCLOSURES THANK YOU.
MOVE IN SUPPORT.
I MEAN OPPOSITION I'M SORRY THAT
YOU MISTER CHAIRMAN NICK ARE
SEEN WITH THAT INNOVATIVE.
LENDING PLATFORM ASSOCIATION
WERE POSTED THIS MEASURE UNLESS
AMENDED AND WE LOOK FORWARD TO
WORKING WITH THE AUTHOR ON THE.
ALRIGHT IN THE END OF THE.
WOULD JUST IN OPPOSITION
SENATOR HUESO.
THANK YOU SHARE.
.
I APPLAUD. THE OFFERED FOR
TAKING THIS ISSUE ONE OF I
INTRODUCED
AN ALMOST IDENTICAL MEASURE.
I TRIED TO.
BRING UP A LOT OF THIS
PROVISIONS THAT YOU.
HE E. YOU'D IT SO WE WERE. ON
THE SAME TRACK AND I I THINK OF.
LOT OF I DON'T BY THE BUSINESSES
ALL BUSINESS OWNERS ARE MORE
SOPHISTICATED THAN THE GENERAL
POPULATION BUT.
A HAVING THE DISCLOSURE
INFORMATION IS IS GREAT.
BUT THE PROBLEM THAT WE WOULD WE
RAN INTO OUR BILL THE REASON I'M
NOT PUSHING ANYMORE.
IT IS THE VERY CHALLENGER HAVING
RIGHT NOW WITH THE D. P. R.
ISSUE.
I I DON'T I DON'T THINK THE PR.
IS IS A. DISCLOSING THE APR IS.
HIS.
.
IS AN INFORMATIVE METRIC THERE
ARE SO MANY PRODUCTS OUT THERE I
COULD JUST.
IF YOU CHOOSE TO PAY DOWN I MEAN
THERE'S SOME STRATEGIES THE
PEOPLE USED TO PAY DOWN THEIR
MORTGAGES WHERE THEY SENT TO
PAYMENTS FOR THE SAME AMOUNT.
BUT AT DIFFERENT TIMES OF THE
MONTH AND THAT'S DRASTICALLY
REDUCES YOUR MORTGAGE OVER IF
YOU HAVE A THIRTY YEAR MORTGAGE
YOU COULD ACTUALLY PAID OFF FOR
TWENTY FIVE YEARS.
AND WITHOUT PAYING AN ADDITIONAL
PENNY.
AND THAT'S AND AT SOME BANKS
DON'T ALLOW YOU TO DO THAT SOME
DO. YOUR KIND A GAME IN THE THE
THE.
INTEREST SYSTEM AND.
AND. EVERYTIME YOU SIGN A
DOCUMENT.
THERE'S INFORMATION DISCLOSED AS
TO HOW MUCH THIS.
THIS OF THIS MONEY WHAT WILL
COST YOU AND THEY MAKE.
.
THEY MAKE A ESTIMATES HOW OF HOW
MUCH BASED.
HOW MUCH IS GOING TO COST YOU
BASED ON A FEW PAY?
WHAT THEY'RE EXPECTING TO PAY
WHEN YOU'RE GONNA PAY THAT AND
THAT? ALMOST NEVER HAPPENS.
BECAUSE THERE ARE DIFFERENT WAYS
TO PAY OFF ALONE.
SO THAT THAT HAS TO BE I MEAN I
DON'T KNOW HOW YOU CAN INFORM
SOMEBODY IF YOU SHOOK SOLELY
LOOK AT THE AP ARE. YOU ALSO
HAVE TO LOOK T THE COST LONG
YOU HAVE TO LOOK AT THE DYNAMICS
ALONG IT'S REALLY HARD TO
MEASURE.
AND IT GETS TO THE POINT WHERE
YOU KNOW YOU YOU MIGHT WONDER IF
YOU MAY BE. MISLEADING SOMEBODY
BY PROVIDING THIS INFORMATION.
AND ON THE OTHER HAND YOU MAY BE
INFORMING THEM BY PROVIDING THAT
DEPENDING IT SOME CASES IT'LL BE
INFORMATIVE AND OTHER CASES OF
BE MISLEADING.
AND THAT'S AND THAT'S THE
PROBLEM THAT I HAD WITH THIS
BILL THAT'S WHY I'M NOT CARING
ANYMORE BUT.
IF YOU THINK YOU COULD SOLVE
THIS I ENCOURAGE YOU TO TO TO TO
MEET WITH THE STAKEHOLDERS AND
CONSIDER. AMENDMENTS.
I I I DON'T THINK THE BILL IN
ITS CURRENT FORM IS IS GOING TO
FULFILL ITS ITS ITS PROMISE.
TO THE PEOPLE THAT ARE LOOKING
FOR INFORMATION.
BUT NOTHING STOPPING A A
BUSINESS OWNER FROM A QUESTION
THIS INFORMATION AND AND AND
MAYBE. THERE SHOULD THERE SHOULD
BE SOME PROVISION AND AND.
ALLOWING A THE.
SO UNDER THE CERTAIN.
ELEMENTS OF THE LAW SHOULD BE
EXPLAINED TO THEM.
BOB WE'RE LOOKING AT THAT AS
WELL FOR FEVER FOR FUTURE
REFERENCE BUT A CURRENTLY I I
JUST DON'T THINK.
THE BILL GETS TO WHICH YOU'RE
TRYING ACCOMPLISH AND I YA
SUPPORT IT TODAY. WITH THE HOPES
THAT YOU CONTINUE TO WORK ON IT
NOT MAKING ANY PROMISES ABOUT
FUTURE BUT.
.
AND PARTICULARLY I REALLY HOPE
YOU YOU CONTINUE TO WORK ON THE
A PR ISSUE BECAUSE.
THE IDEA IS TO GET PEOPLE TO
UNDERSTAND WHAT THEY'RE WHAT
THEY'RE SIGN UP SIGNING UP TO
MOST IF YOU'RE REALLY IN A
SOPHISTICATED PERSON.
AND YOU DON'T KNOW WHAT YOU'RE
SIGNING UP FOR AS FAR AS ALONE
INSANE I. I'M GONNA GET ALONE I
DON'T EVEN KNOW WHAT THE APRS.
OR THE INTEREST RATE THAT I'M.
AGREEING TO OR THE FEES THAT
EMIGRATE IF YOU REALLY DON'T
KNOW THAT.
I DON'T KNOW NECESSARILY THAT
THIS INFORMATION IS GOING TO BE
HELPFUL BECAUSE YOU. YOU HAVE TO
KNOW HOW TO AMORTIZE ALONE WITH
AN INTEREST RATE OVER THIS OVER
THE COURSE OF THE YEAR MOST
PEOPLE DON'T KNOW HOW TO DO
THAT.
IF YOU'RE AN UNSOPHISTICATED
PERSON UNITED WE WERE TO DO THAT
ON YOUR OWN AND AND THIS BILL IS
NOT GOING TO HELP.
WHAT WITH THAT INFORMATION AS
WELL SO I MEAN THAT'S
PROBABLY-ONE OF THE MOST
COMPLICATED
PARTS OF IT ALONE?
AND AND THAT THAT NEEDS TO.
YOU NEED TO FIND A WAY TO JUST
SEPARATE WITH ALL THE. MULTITUDE
OF OF.
OF
FINANCING OPTIONS AND GROWING
HUMMING.
SOMETIMES I I HAD A PR ISN'T
NECESSARILY INDICATIVE.
OF HOW MUCH ALONE IS GOING TO
COST YOU OR LOW A PR INDICATIVE.
OF OF.
THE YOU KNOW.
HOW MUCH YOU CAN AND A PAIN ON
A THIRTY YEAR MORTGAGE YOU MAY
DOUBLE?
THE AMOUNT OF DEBT YOU ASKED TO
TO BORROW.
THE IT IN THE AIR AND IN THE
AMOUNT OF INTEREST
A WITH A LOW PERCENTAGE RATE.
AND SOMETIMES THAT'S A BIGGER
PROBLEM.
THEN HAVE BEEN.
HIGH A PR AND SMALL LOAN OVER A
SHORT TERM.
SO YOU KNOW GETS COMPLICATED BUT
I A YOU APPRECIATE YOU MAKING
THIS EFFORT.
IT YEAH I I THINK IT'S A REALLY
GOOD AREA TO TO LEGISLATIVE TO
LOOK INTO.
BUT AGAIN GOOD LUCK WITH THAT.
AT THE CENTER GAINES.
I WOULD EXPECT.
JUST TO RESPOND TO THAT SHARE AS
CHAIR THAT THANK THAT SENATOR
HUESO FOR HIS LEADERSHIP ON THIS
ISSUE I AM AWARE OF THE GOOD
WORK THAT YOU HAVE ATTEMPTED IN
THE PAST AND.
I HEAR EXPERIENCE AND INSIGHT IS
IMPORTANT AND VALUABLE I THINK
YEAH. I DON'T DISPUTE ANYTHING
THAT YOU SAID THAT IF THERE ARE
CHALLENGES HERE STILL THAT I
KNOW WE HAVE TO OVERCOME. ON
THIS ISSUE I KNOW THAT
CIRCUMSTANCES DE CHANGE.
BUT OUR GOAL CERTAINLY AS IS
TOTALLY CONNECTED WHICH IS TO
TRY TO. MAKE SURE THAT CONSUMER
HABITS THE CONSUMER SMALL
BUSINESS OWNERS MAKE GOOD
CHOICES TO TRY TO PROTECT THEM
AS WE ARE ABLE TO.
BUT I CERTAINLY APPRECIATE ALL
YOUR WISDOM ON IT.
THANK YOU THANK YOU JUST.
TRY TO GET SOME MOB COUPLE
QUESTIONS ANSWERED FOR
CLARIFICATION PURPOSES.
IN TERMS OF THE NATURE OF YOUR
LOANS AND HOW THEY WORK SO.
NO I'M TAKING OF AN EXAMPLE
WHERE THE CEREMONY.
PIZZA PARLOR. AND HAVE.
ANOTHER NEW GOES BAD.
AND I.
ASSEMBLY ARE SAYING FIVE
THOUSAND BUCKS TODAY.
I IN MY BUSINESS AND I NEED A
QUICK LOAN AND.
I'VE GOT CASH FLOW.
AND I CAN MAKE PAYMENTS I.
THE I. I'M HAVING SOME
CHALENGES ON THE PR ISSUE TOO
BUT I.
I WANT TO MAKE SURE THEY'RE A
* CLARITY.
WITH THAT BUSINESS OWNER IN
TERMS OF. YOU KNOW. MAYBE THERE
WOULD BE A FEE ASSOCIATED WITH
THAT.
AND.
AND THAT IF YOU'RE GONNA WORK OF
MY CASH FLOW.
WHEN THERE MAY BE A SLOW TIME IN
THE BUSINESS AND.
MAYBE I WOULDN'T HAVE TO MAKE A
PARTICULAR PAYMENT IN A
PARTICULAR MONTH OR BE A REDUCE
PAYMENT.
I SEE OTHER ISSUES IN TERMS OF
HOW DO YOU CALCULATE APR. WHEN
IT'S A MOVING TARGET.
BUT COULD YOU ANSWER TO ME HOW.
A DISTANCE SO UNDER HAS CLARITY
WHEN THEY ENGAGE INTO A
CONTRACT.
FOR. A FAST LOAN THEM THAT
BECAUSE IT WILL TELL ME IF I'M
WRONG BUT I'M IMAGINING THAT
SOME WITH HIM THE CASH FLOW
QUICKLY.
AND THEY NEED TO SOLVE A
PROBLEM.
AND THEY'RE GONNA WORK WITH
THEIR CASH FLOW OR TO BE DEBT
OBLIGATION. AND THAT THE
DOWNTIME IS SOMETHING THAT
COULD.
REALLY HURT THE BUSINESS ARE
PARTED EVEN PUT THEM OUT OF
BUSINESS IF YOU'RE WAITING.
POTENTIALLY FOR WEEKS TO GET
APPROVAL ON ALONE.
I I WOULD SAY THE VAST MAJORITY
OF OUR CUSTOMERS PROBABLY DO
WANT THEIR MONEY FAIRLY QUICKLY
THEY CAN GET IT WITHIN. MINUTES
WHENEVER P. CUSTOMERS AND WITHIN
A DAY OF SOMETIMES HOURS OF
THEIR NEW CUSTOMER.
THE PRODUCTS
FOR WIRE INDUSTRY SORT OF UNIQUE
COMPARED TO HISTORICAL
COMMERCIAL LENDING IS IN THE
PAST.
COMMERCIAL LENDING WAS DONE BY
BANKS AND NON BANKS THAT MADE
TWO THREE FIVE YEAR LOANS WITH
MONTHLY REPAYMENTS
WORK SIMILAR TO A MORTGAGE WHERE
THERE'S NEIGHBORS ATION SCHEDULE
VERY EASY TO CALCULATE.
THE PRODUCTS AND OUR INDUSTRY
TODAY ARE VERY UNIQUE IN THE
FACT THAT THERE ARE STILL LOANS.
THERE'S TYPICALLY SHORTER TERM
LOANS THAT WHEN THEY CAN BE
ANYWHERE FROM FOUR MONTHS TO
EIGHTEEN MONTHS OR TWO YEARS.
THE PAYMENTS TYPICALLY OR DAILY
OR WEEKLY. IT'SA WAY TO PERMIT.
FINANCE COMPANIES TO PROVIDE
CAPITAL TO BUSINESSES THAT ARE
BENEATH THEIR CREDIT SCORE THAT
WOULD TAKE THREE OR CREDIT REST
IT WOULD TAKE THREE YEARS TO PAY
BACK.
THERE'S ALSO PRODUCTS WHERE.
YOU'RE PURCHASING EVER SEE
WHAT'S NOT ALONE AT ALL.
AND YOU'RE PURCHASING FOR
EXAMPLE TEN PERCENT OF A
CUSTOMER'S CREDIT CARD RECEIPTS
SO EVERYDAY OF MARCHIG COMES IN
AND PURCHASE A CUSTOMER COMES IN
TO BUY SOME FROM THE MERCHANT.
WHEN THAT MERCHANT PATCHES OUT
THEIR CREDIT CARD PROCESSOR AT
THE END TODAY IN THAT SCENARIO
TEN PERCENT OF THOSE CREDIT CARD
RECEIVABLES WOULD GO TO THE
PURCHASER. AND TO THE PURCHASER
WAS REPAID IN FULL.
ALL OF THE TERMS THAT ARE IN
THIS BILL TODAY. EXCEPT THE PR
ARE CURRENTLY DISCLOSED ALL
SMALL BUSINESS OWNERS YOU CANNOT
HAVE AN ENFORCEABLE CONTRACT IN
ANY STATE IN THIS COUNTRY.
AMATEUR DISCLOSING THE AMOUNT OF
MONEY YOU'RE GIVING SOMEBODY THE
AMOUNT OF MONEY THEY PAY YOU
BACK WHEN PAYMENTS ARE DUE ON
WHAT'S USER CHARGES. ALSO
PREPAYMENT PENALTIES HOW THEIR
CATHOLIC BARREL DISCLOSED IN THE
CONTRACT THAT A CUSTOMER SIGNS.
IN A CUSTOMER'S ALWAYS FREE TO
GO ENTER INTO AN AGREEMENT WITH
US AND SAY WAIT I DON'T WANT THE
MONEY WOMAN WHO SHOT FOR. WHICH
IT MAKE THEM TAKE OUR MONEY THEY
ALWAYS HAVE THE RIGHT TO DO
THAT.
SO THAT'S THE WAY THE PROCESS
CHARLIE WORKS AND IT IS THE LOAN
PERSONALLY DO PERSONALLY SIGNED
TOO LONG SO ON THE LOAN PRODUCTS
IN THE INDUSTRY THEY GENERALLY
ARE PERSONALLY GUARANTEED. SO
THE INDIVIDUAL.
SIGN OUR WHICH IS TYPICALLY THE
BUSINESS OWNER WOULD BE LIABLE
IF THEY FAILED TO MAKE A PAYMENT
ON THE PURCHASE OF RECEIVABLES
NO IT IS A TRUE PURCHASE AND
SALE TRANSACTION WITH NO
PERSONAL GUARANTEE. AND THAT
INSTANCE
WE ARE BUYING A PERCENT OF THE
FUTURE RECEIVABLES AND MY
EXAMPLE THE CREDIT CARD
RECEIVABLES AND IF THEY FAIL TO
EXIST THROUGH NO FAULT OF THE
MERCHANTS. THE MERCHANT DOES IS
NOTHING SO IN THE CASE WERE
CALIFORNIA HAD THOSE HORRIBLE
I'M BALD TIRES IN THE MUD SLIDES
RAPID ADVANCE ITSELF LOST A
NUMBER OF CUSTOMERS THEY LOST
THEIR BUSINESSES. THEY KNOWS
ANYTHING.
ASSEMBLY THERE BUT THERE'S NO
RISK FOR THEM AND IN FACT MANY
OF OUR. NEIGHBOR APPLICANTS SAT
UP QUALIFY FOR BOTH PRODUCTS OR
LOAN PRODUCT AND OUR PURCHASE
RECEIVABLES PRODUCT. AND EIGHT
CHOOSE WHICH ONE TO TAKE BASED
ON VARIOUS FACTORS ARE RELEVANT
TO THE BUSINESS AND EVERYONE HAS
A DIFFERENT DECISION OKAY NOW
YOU'D MENTIONED SOMETHING ABOUT
FURTHER DISCLOSURE.
YOUR COMMENTS ARE DONE I
MISUNDERSTAND THAT WE WERE
SUPPORTIVE DISCLOSURE WE JUST
THINK IF YOU A PIERCED THE WRONG
DISCLOSURE WE THINK THAT A
PURITY CONSUMER METRIC THAT THE
FEDERAL REGULATORS IN TRUCKS
THAT HAVE DONE THEM. THE MOST
COMPREHENSIVE STUDIES OF A PURE
HAVE RECENTLY SAID IN THE LAST
FIVE YEARS. A PURIST CONFUSING
IT DOESN'T HELP SHOPPING AND
IT'S COMPLICATED FOR CREDITORS
TO CALCULATE AND GET CORRECT
OKAY AND THESE ARE SAME ISSUES
IT CENTER HUESO BROUGHT UP IN.
THIS
WOULD LIKE TO ASK YOU SENATOR
GLAZER.
IS THERE A WAY TO.
I THINK DRIVE AT WHAT YOU'RE
ASKED. I THINK WHAT YOU'RE
REALLY ASKING GOING TO SOLVE
THIS YOU WANT CLARITY SO THE
SOMEONE ENGAGES IN A LOAN OF
THIS NATURE. THEY KNOW WHAT
THEIR OBLIGATIONS ARE WHAT THEIR
COSTS ARE. BUT IT SOUNDS LIKE
THERE'S ISSUE USING THE A PR
METRICS AND.
RIGHT DOWN. THE CENTER I THINK
THAT THAT IS CORRECT.
WE'RE NOT REGULATING THE
PRODUCT THAT CAN OFFER WHATEVER
THEY. THINK THEY WANT OFFER AND
WE CERTAINLY.
AREN'T SUGGESTING THAT.
THAT THAT WE KNOW BETTER THAN
THAT PERSON TAKING OUT THE LOAN
THEY CAN MAKE WHATEVER CHOICE
THEY WANT TO MAKE.
BUT AS THE FEDERAL RESERVE BANK
OF CLEVELAND SAID IN TWO
THOUSAND FIFTEEN.
THAT SAID THE EFFECTIVE IS THAT
THE FEDERAL RESERVE. UP
CLEVELAND HAS HAD THE EFFECTIVE
INTEREST RATE AS IT AND APR
COULD MAKE COMPARING PRODUCTS
EASIER COULD SPECIALLY.
ALTERNATE CREDIT PRODUCTS WITH
PURSES TRADITIONAL ONES.
I IN THE ANALYSIS THAT YOU HAVE.
THAT THE LAST PARAGRAPH OF IT
SAYS THAT IF THE COMMITTEE WANTS
TO GO FORWARD WITH THE AP ARE
THEY MAKE SUGGESTIONS.
AMENDMENTS WILL BE NECESSARY TO
CLARIFY ACCURACY REQUIREMENTS
IT'S ONE OF THE ISSUES THAT WAS
RAISED IN THE OPPOSITION'S
TESTIMONY.
TOLERANCE ALLOWANCES
ESPECIALLY WHAT TYPE OF FEES AND
CHARGES SHOULD BE INCLUDED IN
THE AP OUR CALCULATIONS OF ALL
THESE THINGS NEED TO BE WORKED
ON.
BECAUSE WE ALL WANT CLARITY WE
DON'T WANT TO CREATE A SITUATION
WHERE THIS LITIGATION RISK
BECAUSE OF MINOR ERRORS WHEN
THERE'S THINGS STILL TO BE
WORKED ON HERE I THINK IS
SENATOR HUESO WAS SAID. THIS IS
DIFFICULT TO GET AT.
BUT WE'RE JUST TRYING TO.
PROVIDE WHAT IS A MUCH MORE
UNDERSTANDABLE METRICS.
FOR A UP. TO CONSIDER OR NOT.
BUT I SHOULD THE LIST THAT THEY
CAN IGNORE ALL THAT STUFF.
THEY COULD IF THEY CAN SEE IT
THEY CAN IGNORE IT FOR THESE
THREE TO GIVE THEM A LITTLE
EXTRA TOOL TO EXAMINE HOPEFULLY
THINK ABOUT. THAT'S ALL WE'RE
TRYING TO DO WITH THE APR.
FROM YOUR CHART DURING GETTING
CLARIFICATION.
.
SO THE WITNESSES IN OPPOSITION.
OF THIS DISCLOSURE INFORMATION
IS AT THE A PR ISSUE
EXCLUSIVELY.
THAT IS AN ISSUE THAT IS A
PROBLEM.
IS THERE A WAY TO GET OVER THAT
HUMP CLARIFY THAT THAT THAT'S
OKAY ONLY ISSUE. IN THE LIST OF
ITEMS THE TIMING OF IT STILL
CREATES AN ISSUE AND THAT THE
DEFINITION OF WHAT HOW YOU
DISCLOSE TO PREPAYMENT BUT
THAT'S THE ONLY SORT OF FULL
ITEM.
OKAY AND I'M I GUESS I'M ASKING
THE AUTHORS THEIR WAY TO.
IF THAT ADDITIONAL INFORMATION.
.
WITHOUT USING THE A PR I DON'T
THINK THERE IS BECAUSE I THINK
THERE'S NO WAY TO COMPARE THAT'S
REALLY WHAT THE FEDERAL RESERVE
BANKS SAID.
IN TWO THOUSAND FIFTEEN ON THIS
ISSUE AND IT'S WHAT WE FEEL
WHICH IS THAT.
I'M.
IT'S NOT JUST ABOUT HOW MUCH TO
HAVE TO PAY HOW LONG THE THINGS
THAT.
THE WITNESSES INDICATE THEY
THEY'RE REQUIRED TO PROVIDE BUT
IT'S HOW DO YOU COMPARE HIS
OFFER TO YOU PURSES HER OFFERED
YOU VERSUS MY OFFERED HIM. IT IS
A COMPLETE BIZARRE OUT THERE
WITH EVERYBODY FROM GOOD PLAYERS
TO HUCKSTERS TRYING TO SAY YOU
SHOULD BORROW YOUR MONEY FROM
ME.
OKAY AT. A METHOD OF
STANDARDIZING IS SO FINE TO GIVE
THEM ONE TOOL ONE ADDITIONAL
TOOL THIS IS A CAN IGNORE OKAY
BY THEY CAN TO TAKE INTO ACCOUNT
BUT YOU YOU DON'T HAVE ANYTHING
REALLY TO COMPARE WHAT HE'S
SAYING ACCOUNT TO WHAT SHE'S
SAYING BECAUSE WE WANT YOU TO
MAKE. IT THE BEST CHOICE WILL
GET IT ON YOU. AYE NOR WE TRYING
TO.
REGULATE THE PRODUCTS IN WHICH
THEY'RE OFFERING US NOT TRYING
TO GET THE MARKETPLACE.
THROUGH THE CHAIR PART ASSN JUST
ONE FINAL QUESTION READY IT'S AN
EARNINGS GROWTH SO.
I'D LIKE TO KNOW WHAT YOUR
RESPONSES TO COMING UP WITH A
STANDARDIZED METHOD.
SO THAT THE BUSINESS CENTER
COULD COMPARE COMPETE
COMPETITORS IN YOUR INDUSTRY.
AT HAVE CLARITY ON WHAT THE COST
WOULD BE.
.
WHAT IT DOES TO A COMMENT SAID
THE FIRST IS I SO I REJECT THE
CONCEPT THAT THE PROPOSED BOX
WOULD PROVIDE ALL THE RELEVANT
INFORMATION TO THE BUSINESS
OWNERS THERE ARE OTHER FACTORS
THAT ARE CRITICALLY IMPORTANT TO
THEM? INCLUDING HOW FAST CAN
THEY GET THE MONEY OR THEIR
GUARANTEES WHERE THE CONDITIONS
ARE THERE. AND IT WHEN YOU START
TO ADD ALL OF THOSE KINDS OF
THINGS IT JUST MAKES A FULL
CONTRACT AND WE ARE TO PROVIDE
FULL CONTRACTS.
.
AND.
ON THE EP ARE. WITH AUTHORS
TRYING TO DO YES AND IN TERMS OF
PROVIDING CLARITY TO THE
BORROWER.
.
AND I'M TRYING TO FIGURE OUT IS
ZERO.
CAN YOU HELP BE A PART OF THAT
SOLUTION.
WALL AT SAME TIME ADDRESSING
THE CURRENT CONCERNS OF A PR
RIGHT WHEN WE WE MET WITH
SENATOR GLAZER WE HAD THESE
CONVERSATIONS IN THERE. THERE
MAY BE OTHER METRICS
THAT YOU COULD DO IN TERMS OF
TOTAL DOLLAR COST PER DAY THIS
COST YOU OR SOMETHING THAT BUT.
I DO THINK EPR IS A WRONG METRIC
FOR SMALL BUSINESS OWNERS WHAT
THEY CARE ABOUT IS. HOW MUCH IS
THIS IF I BORROW A DOLLAR TODAY
HOW MUCH IS AT DOLLAR COSTING ME
IN DOLLARS AND HOW MUCH MONEY
CAN I MAKE OFF OF THAT?
NUMBER IS WHAT'S MOST RELEVANT
TO THEM AND WE BE SUPPORTIVE OF
A CONCEPTS SUCH AS THAT.
IF IF IF I MAY PLEASE.
.
THE THE MEASUREMENTS THAT SMALL
BUSINESS OWNERS CARE ABOUT ARE
THE AMOUNT OF MONEY THEY'RE
GETTING AND HOW MUCH IF TO PAY
BACK INCLUDING ALL FEES AND THE
DIFFERENCE IN THAT SO THEY CAN
SEE WHAT THE TRUE COSTS THE
MONEY AS. A BECAUSE THIS.
S. B. TWELVE THIRTY FIVE SEEKS
TO COMPARE THE COST AGAINST SO
MANY DIFFERENT TYPES OF PRODUCTS
PARTICULARLY THESE PURCHASE AND
SALE OF RECEIVABLES PRODUCTS
THAT AREN'T EVEN LOANS. IT THESE
THESE METRICS ARE THAT SHOW THE
DOLLAR COST ARE REALLY THE BEST
TO COMPARE GOT ACROSS PRODUCTS.
YES.
SO I I'M I'M TRYING TO BE CLEAR
ON SENATOR GLAZER ON WHERE YOU
ARE ON.
ACCEPTING THAT THEY P. OUR
STATE.
STAGING AND. THE COMMENTS THAT
YOU JUST MADE AS IT RELATES TO
CLARIFICATION AND ACCURACY
REQUIREMENTS IN THE TOLERANCE OF
ALLOWANCES.
ARE YOU ACCEPTING THAT AS AN
AMENDMENT YES I I'M I'M
ACCEPTING THAT IS AMENDMENT THAT
WE WILL WORK ON THOSE AMENDMENTS
TO DO THOSE THINGS THAT THAT
WOULD HELP AYE IF WE KEEP A PR
IN WHICH I THINK IS THE HEART OF
THE BILL.
YEAH I WILL IT TO ADVANCE THOSE
EYES AS INDICATED.
I AM THE ANALYSIS KPR
CALCULATIONS IN CASES WHERE
TRUTH THE MONEY DOES NOT.
CONTEMPLATE.
THE TYPE OF FINANCES COVERED BY
THE SHOW AND ALL THAT ADDITIONAL
CLARIFICATION THERE YES NOT.
OKAY.
TO GIVE SOME CONSIDERATION.
ALRIGHT THANK YOU.
.
SURE GLAZER WHICH ELECT A
JOURNEY IN ADDITION QUESTIONS.
THEY'RE GOING TO FIND.
VOIGTS.
WHETHER YOU CAN YOU CAN TINA
COMMUNICATING.
.
THE ON WORSE WE HAD A GOOD
MEETING AND I THOUGHT I THINK
MOVING THE BILL FORWARD TODAY
HOPEFULLY CREATES A LITTLE MORE
MOMENTUM FOR.
GOOD THOUGHTFUL CONVERSATION TO
TRY IT ADVANCE BOTH OUR AIM TO
NOW WILL BE MY ATTENTION BY. MY
TOUCHES THE LAYOFF AT LIKE TO
SEE HOW IT DEVELOPS AND IT'LL
IT'LL COME ON THE SENATE FLOOR
BUT.
I THINK YOU KNOW.
KIND OF WHAT MY CONCERNS ARE AND
I'M HOPING THAT THEY CAN BE
ADDRESSED THROUGH THE PROCESS
GOOD THANK YOU THANK YOU. VERY.
THANK YOU FOR ALL OF THE
WITNESSES BOTH FOREIGN AGAINST
AYE AYE TWO ONE EXPRESS PRETTY
MUCH WHAT ABOUT SENATOR HUESO
STATED AS IT RELATES TO
CONCERNED WITH THE PR I I DON'T
THINK THIS IS APPLES VERSUS
APPLES. COMPARISON IN THIS
INDUSTRY AND OUT OF THIS IS
UNIQUE SO.
I'M.
COMMITTED TO MOVE INTO FOUR BUT
I'M ASKING FOR THAT COMMITMENT
TO ADDRESS THOSE ISSUES BECAUSE
I I I REALLY THINK THIS IS THE
STICKING POINT IN THIS ISSUE
MOVING FORWARD AND I THINK.
SENATOR HUESO AYE AYE TAKEN
ATTEMPTS AT THIS ISSUE OUT IN
PREVIOUS YEARS I'M.
SPEAKS FROM EXPERIENCE ON HOW
DIFFICULT IT'S GOING TO BE TO
MOVE FORWARD IF WE DO NOT
ADDRESS IS A PR SO. ON THAT
ALLOW YOU TO CLOSE THAT THANK
YOU MISTER CHAIRMAN THANKS TO
THE CONSIDERATIONS THAT
RESPECTFULLY ASK FOR AN AYE VOTE
AS WE TRY TO. MOVE THIS FORWARD
AND CONTINUE TO WORK ON THESE
ISSUES.
RARE.
SO WE HAVE AN AMENDMENT BY
SISTER HUESO TO PASS WITH
AMENDMENTS TO BE TAKEN IN
JUDICIARY AMOUNT SECRETARY
PLEASE CALL THE. ROLL.
THE MOTION IS TO PASS WITH
AMENDMENTS BE TAKEN IN JUDICIARY
SENATOR BRADFORD ARE. FOR AYE
BIDAK NO PRODUCT NO GAINES.
GALGIANI WESO. WAS SO I LARA.
PORTANTINO.
PORTANTINO I.
YEAH YEAH YEAH.
RIGHT HUESO PRESENT.
ITEM TN SP THIRTEEN SEVENTY NINE
ON BEHALF OF SENATOR HERNANDEZ.
YEAH SO.
SO.
YOU WANT TO LOOK TO ROLL REAL
QUICK FOR MISTER PORTANTINO AS A
PLACE SOMEWHERE TO BE.
YEAH REQUESTED. BUT ART ART ART
THEN SOONER HUESO BERETTA.
THANK YOU.
.
I LIKE TO BEGIN BY. ACCEPTING
THE AMENDMENTS OF THE COMMITTEE.
ANALYSIS ON BEHALF OF THE
AUTHOR.
S. B. THIRTY SEVEN AND WOULD
REQUIRE THE DEPARTMENT OF
BUSINESS OVERSIGHT TO CONDUCT
THE CALIFORNIA SPECIFIC STUDY.
ON UNBANKED AND UNDER BANKED
POPULATIONS.
STATISTICS FROM A TWENTY FIFTEEN
FDIC NATIONAL SURVEY OF UNBANKED
AND UNDER BANKED HOUSEHOLDS
INDICATE THAT. UNDER BANK RATES
IN CALIFORNIA INCREASED BY TWO
PERCENT SINCE TWENTY THIRTEEN.
THIS BILL.
ALSO MOVES TO BANK ON A ON
CALIFORNIA PROGRAM FROM THE
DEPARTMENT OF BUSINESS
OVERSIGHT.
TO THE STATE TREASURER'S OFFICE
I RESPECTFULLY ASK FOR YOUR EYE
THE. BRING WITNESSES AND
SUPPORT.
WITNESSES IN OPPOSITION.
WELL. BILLS BEEN MOVE THE.
WE EVER DO PASS AS AMENDED TO
APPROPRIATIONS I WANT TO THANK
SENATOR.
HUESO ON BEHALF CENTER
HERNANDEZ I DID A SIMILAR BILL A
NUMBER OF YEARS AGO WHEN I WAS
INNOCENT I KNOW THIS IS A VERY
IMPORTANT ISSUE. SO ON THAT NOTE
DOWN THEN SECRETARY PLEASE CALL
OR. LOTION IS DO PASS AS AMENDED
TO APPROPRIATIONS SENATOR
BRADFORD BY.
I BIDAK BY PREDICT AYE GAINES
PLANES AYE GALGIANI WEST SO.
WITH SO I LARA PORTANTINO.
PORTANTINO AYE.
S. WOULD NOT NEED LEASE WE HAVE
SENATOR STONE.
ELEVEN SEVENTY FOUR BUT WE'RE
GOING TO LIFT THE ROLE AND CALL
FOR ALL THOSE ABSENT MEMBERS ON.
THOSE STILL AUCTIONING ITEMS.
YEAH YEAH.
SENATE BILL EIGHT TWENTY SIX
MOTIONS DO PASSED TO JUDICIARY.
CHAIR VOTING AYE.
ABSENT MEMBERS GAMES.
I'M SORRY LIKE GAINES.
HUESO I'M HUESO AYE LARA.
IT HAS FULLER.
WILK.
SENATE BILL EIGHT THIRTY EIGHT
MOTION IS TO PASS WITH
AMENDMENTS TO BE TAKEN IN
JUDICIARY.
CHAIR VOTING AYE. GAINES.
.
I EN EL TOOK A LOOK AT CO MAY
CHANGE BEFORE GIPSON FOR.
AYE CANES AYE GALGIANI.
LARA.
SENATE BILL NINE THIRTY. MOTION
IS DUE PASSED WITH AMENDMENTS TO
BE TAKEN AND GOVERNANCE AND
FINANCE. CHAIR VOTING AYE.
LARA.
PORTANTINO.
PORTANTINO I.
OH AND SORRY GAINES.
I AM A AGAIN ALL TOOK A LOOK
DOWN ON THE SENATE FLOOR
SEAFOOD.
STANCE OF CHANGES.
OKAY.
THANK YOU BYE TECH I. THINK YOU.
SIX.
WNED.
SENATE BILL TEN EIGHTY SEVEN.
THE MOTION IS TO PASS.
TO APPROPRIATIONS COMMITTEE.
CHAIR VOTING AYE WESO. HUESO AYE
LARA PORTANTINO.
PORTANTINO I.
SENATE BILL ELEVEN SEVENTY FOUR
MOTION IS TO PASS TO JUDICIARY.
THIRTY.
OF SENATE BILL TWELVE A ONE.
MOTION IS DUE PASSED WITH
AMENDMENTS TO BE TAKEN IN
JUDICIARY.
CARE VOTING AYE.
LARA.
SENATE BILL TWELVE THIRTY FIVE.
CHAIR VOTING AYE. GAINES.
GALGIANI.
LARA.
SENATE BILL THIRTEEN.
SEVENTY NINE. MOTION IS DO PASS
AS AMENDED TO APPROPRIATIONS
COMMITTEE.
SHARE VOTING AYE GALGIANI. LARA.
CONSENT. AND.
CONSENT CALENDAR ITEMS WERE IN
NINE TO PASS.
WITH THE CHAIR VOTING AYE. AND
LARA.
SENATORS DON'T THINK
ABBREVIATIONS HERE TO PRESENT S.
B..
BUT BEFORE I.
CHAIRMAN AND MEMBERS I'M SORRY
IT'S SO LATE BUT.
I'M VERY HONORED TO BE HERE
TODAY TO PRESENT SP ELEVEN
SEVENTY FOUR.
S. B. ELEVEN SEVENTY FOUR SEEKS
TO PROVIDE CONSUMERS AN OPTIONAL
MEMORY SAY THAT AGAIN AN
OPTIONAL LEVEL OF PROTECTION IN
PURCHASING COMMERCIAL REAL
ESTATE.
WHICH THEY CAN BE LEGALLY
COMPENSATED FOR.
UNDER THE CURRENT REGULATIONS
CONSUMER SEEKING TO PURCHASE
COMMERCIAL REAL ESTATE.
ARE VOID OF THE PROTECTIONS THAT
ARE PROVIDED FOR RESIDENTIAL
REAL ESTATE PURCHASES.
THESE PROTECTIONS AFFORDED TO
RESIDENTIAL REAL ESTATE
PURCHASES PROTECT THE CONSUMER
FROM. AN ACCURATE INFORMATION IN
THE FORM OF DISCLOSURES.
AND TITLE INSURANCE.
UNDER CURRENT LAW. IF IT IS
FOUND THAT AN AGENT IS INVOLVED
IN THE PURCHASING OF COMMERCIAL
REAL ESTATE. DID NOT DISCLOSE
INFORMATION PROVIDED TO THEM BY
THE SELLER.
THEN THE REALTOR IS AT RISK OF
HAVING A LICENSE SUSPENDED OR
REVOKED AGAIN THAT'S EXISTING
LAW.
THE ISSUE LANDS IN THE ESCROW
PROCESS OF BUYING A PIECE OF
COMMERCIAL PROPERTY. THE
CONSUMER IS INVESTING MONEY INTO
BECOME A COMMERCIAL PROPERTY
INTEREST.
UNDER CURRENT LAW. THERE IS NO
PROTECTION FOR A CONSUMER FROM
AN ACCURATE.
FOR NON VERIFIED DISCLOSURES
DURING THE SALES AND ESCROW
PROCESS.
THIS BILL SEEKS TO PROVIDE AN
OPPORTUNITY.
FOR COMMERCIAL REAL ESTATE
AGENTS AND CONSUMERS AND THAT
OUR REALTOR WHO OFFERS A
CERTIFIED DISCLOSURE. WILL LOOK
MORE ATTRACTIVE TO THE CONSUMER
THAN A REALTOR WHO DOES NOT.
S. B. ELEVEN SEVENTY FOUR
PROVIDES FOR AN OPTIONAL
CERTIFIED DISCLOSURE THAT GIVES
THE CONSUMER THE FULLEST.
MOST ACCURATE SNAPSHOT. OF THE
FINANCIAL FACTORS THAT
CONTRIBUTE TO THE FINANCIAL
VALUE. OF THE COMMERCIAL
PROPERTY BEING SOUGHT TO
PURCHASE.
THIS IS IMPORTANT WHEN DEALING
WITH AS WE DO AND COMMERCIAL
PROPERTIES MULTIMILLION DOLLAR
SALES. WHERE THE BROKER WILL
COMMUNICATE TO A PROSPECTIVE
BUYER A CAP RATE?
I CAP RATE AS AN EXAMPLE IS WHAT
EIGHTY INVESTOR CAN EXPECT TO
GET BACK AS A RETURN ON
INVESTMENT.
LESS ANY FINANCING AND ASSUMING
THAT THERE'S NO FINANCING.
WALL THE UNCERTIFIED DISCLOSURE
WILL REMAIN THE SAME.
BUT CERTIFIED DISCLOSURE OPTION
GIVES THE CONSUMER THE ABILITY
TO HOLD A REAL ESTATE BROKER
FINANCIALLY ACCOUNTABLE FOR A
CAUSE OF ACTION.
TO RECOVER LOSSES IF THE BROKER
IS LIABLE FOR THOSE LOSSES DUE
TO MISLEADING.
OR GIVING FAULTY INFORMATION.
WHILE ALSO PROVIDING THE SAME
PROTECTIONS TO RIP.
REALTORS AS RESIDENTIAL
DISCLOSURES PROVIDED TODAY.
S. B. ELEVEN SEVENTY FOUR IS A
COMPLETELY OPTIONAL PRODUCT
IT'S A MENU ISN'T SOMETHING THAT
BROKERS CAN OFFER OR DON'T HAVE
TO OFFER.
THAT SOME REALTORS WILL FIND
USEFUL.
IN ATTRACTING CONSUMERS TO
COMMERCIAL LOTS
WHAT PROVIDING EXTRA.
PROTECTION. TO OUR CONSUMERS.
MISTER CHAIRMAN.
I DON'T HAVE AN ANSWER ANY
QUESTIONS.
WITNESSES IN SUPPORT.
WITNESSES IN OPPOSITION.
THANK YOU SANTIAGO WITH THE
CALIFORNIA ASSOCIATION OF
REALTORS.
I LIKE TO THINK THE CHAIRMAN
MEMBERS FOR LINE WE SPEAK TODAY.
ALSO I WOULD LIKE TO THINK THE
AUTHOR FOR MEETING WITH US TO
DISCUSS THE CONCERNS THAT GAVE
RISE TO THIS BILL.
AND ALSO THE PURPOSES OF THIS
BILL.
UNFORTUNATELY WE MUST OPPOSE
THIS BILL.
THE BILL AS DRAFTED AND PERHAPS
UNINTENTIONALLY WOULD CREATE AN
UNPRECEDENTED.
AND UNWORKABLE EXPANSIONIST AT
LICENSEES DUTIES.
ABOVE TO DISCLOSE IT WOULD
IMPOSE GREATER LIABILITY AND
IMPOSE DRACONIAN PENALTIES FOR
ANY FAILURE TO DISCLOSE.
I WOULD IMPOSE A STRICT
LIABILITY STANDARD FOR ANY
ERROR.
THE NEW OBLIGATIONS EFFECTIVELY
REQUIRE LICENSEES TO TO OUR.
TO RETAIN COSTLY EXPERTS AND
EVEN IF EVEN IF THAT'S NOT
DESIRED BY THE PRINCIPLES OF
IMPOSE SIGNIFICANT TRANSACTIONAL
COSTS AS WELL AS DELAYING AS
GROSS.
FURTHERMORE THE INCREASED
LIABILITY THAT THIS THAT THAT
THIS BILL WOULD ENTAIL WOULD
MAKE YOU KNOW COVERAGE VERY
EXPENSIVE AND PERHAPS EVEN
IMPOSSIBLE TO. OBTAIN THAT WOULD
AGAIN INCREASE TRANSACTIONAL
COSTS SIGNIFICANTLY.
THAT'S THE SECOND PORTION OF THE
BILL WHICH IS DEALS WITH THE
COMMERCIAL DISCLOSURES I BELIEVE
THE SUBSTANTIVE PROBLEMS WITH
THAT COMMERCIAL DISCLOSURE WILL
EXPLODE IN THE ANALYSIS.
HOWEVER I THINK BEFORE EVEN ANY
VENTURING INTO TO DISCUSSING
WHETHER COMMERCIAL.
DISCLOSURES OF THAT NATURE ARE
ARE NEEDED TO MEET NEED TO BE A
GENERAL DISCUSSION ABOUT.
THE FEASIBILITY AND WORKABILITY
AND NECESSITY OF SUCH COMMERCIAL
DISCLOSURES. CALIFORNIA COMMON
LAW DOES PROTECT
BUYERS FROM MISREPRESENTATIONS
CALIFORNIA COMMON LAW ALSO
REQUIRES BOOK SELLERS AND
BROKERS TO DISCLOSE ALL MATERIAL
FACTS OF WHICH THEY ARE AWARE.
THE ABILITY FOR A KICK*
STANDARD COMMERCIAL DISCLOSURE.
INTO TO WORK IS ALSO OPEN TO THE
COMMERCIAL SPHERE IS MUCH
DIFFERENT A SKYSCRAPER IN
DOWNTOWN LOS ANGELES VERSA A
SMALL LAW ENFORCEMENT VERY
DIFFERENT BEINGS WHETHER
STANDARDIZED DISCLOSURE WOULD
EVEN WORK. IS A QUESTION BUT
THAT'S A DIFFERENT OF THE
CONVERSATION THAT WE NEED TO BE
HAD.
HOWEVER THE BILL THAT'S IN
PRINT.
IS AGAIN SOMETHING WE MUST
OPPOSE AND WE ASK FOR YOUR NO
VOTE I'M HAPPY TO TAKE ANY
QUESTIONS.
IT THAT CHAU WITNESSES IN
OPPOSITION SEEN HEARING NONE
BRING BACK TO COMMITTEE ANY
QUESTIONS BY COMMITTEE.
SENATOR DANCE.
THANK YOU VERY MUCH.
CHAIRMAN BRADFORD AYE.
JUST LIKE SOME CLARIFICATION
HERE BECAUSE.
CENTER STONE TO GIVE THIS
TESTIMONY SAID THAT WHAT HE'S
PROPOSING IS OPTIONAL.
SO WHEN THE LIABILITY EXPOSURE.
BE LIMITED TO OUR.
A REAL ESTATE BROKER THAT WOULD
MAKE THAT DECISION
TO OFFER THAT.
.
FURTHER US CERTIFICATION AND
DISCLOSURE OF INFORMATION.
WITH RESPECT TO THE FIRST
PORTION OF THE BILL CLUB WHICH
REDEFINED SUBSTANTIAL
MISREPRESENTATION SPECKLES WAY
BEYOND THAT. IT ACTUALLY CREATED
AN OBLIGATION FOR BOTH
COMMERCIAL AND RESIDENTIAL.
AGENTS TO DISCO ERA. LICENSEES
DIDN'T MAKE DISCLOSURES
REGARDING A PROPERTY.
PERIOD FOR THE FIRST PORTION THE
BILL IS NOT OPTIONAL IT JUST
CRICKET. IT REDEFINES
MISREPRESENTATION IN THE CODE
AND SAYS THAT A
MISREPRESENTATION INCLUDES A
FAILURE TO REPORT CERTAIN ITEMS.
SO HOW WOULD IT LICENSE EVEN
KNOW ABOUT THE ITEMS ARE LISTED
THIS IS A COMPLETELY DIFFERENT.
A CHANGE THROUGH THE CHAIR. IF I
COULD ASK YOU A QUESTION OF
FASTENERS STONE PIGEONS RESPOND
TO THAT IN THE US.
WILL FIRST OF ALL.
IF YOU MADE A VERY IMPORTANT
POINT IN THIS IS OPTIONAL. PANDA
AND I'VE BEEN MEETING WITH THE
THE REALTORS WHO I HAVE A VERY
GOOD RELATIONSHIP WITH HER OVER
THE YEARS AS A REAL ESTATE
INVESTOR. AND.
.
THE LANGUAGE OR TALKING ABOUT
HIS STRICTLY DEALING WITH
COMMERCIAL PROPERTIES
AND THERE WOULD BE NO LIABILITY
UNLESS A BROKER WANTED OFFER A
HIGHER LEVEL.
OF OF DISCLOSURE WE COLLEGE
UNDERWRITING OKAY SO WE HAVE
SENIOR CITIZENS THAT WILL TAKE
MONEY AND THEY'LL INVEST IN A.
CALL THE UNIT APARTMENT BUILDING
AND THEY GO TO A BROKER THEY MAY
NOT BE REAL ESTATE SAVVY IN THE
SAY THE REAL ESTATE BROKER FIVE
INVEST MY ONE POINT TWO MILLION
WHAT AM I GETTING BACK.
AND THE REALTOR MY SAY WE'RE
GOING TO GET A SEVEN PERCENT
RETURN ON INVESTMENT A SEVEN
CASH.
AND.
AND I'M GONNA UNDERWRITE A FOR
YOU AND SHOW IT TO YOU AND SO
HE'S GOING TO TAKE THE
INFORMATION FROM THE SELLING
BROKER. AND HE'S GOING TO SHOW
THAT IT IS A.
SEVEN PERCENT RETURN OR TWELVE
PERCENT RETURN.
AND THERE IS NO OBLIGATION.
THAT THE BROKER REPRESENTS THE
BUYER HAS TO VERIFY THE
INFORMATION THAT THE SELLING
BROKER IS GIVEN THEM.
AND PEOPLE HAVE GOTTEN HURT
BECAUSE OF THAT.
SO I'M TRYING TO PREVENT
CONSUMERS ON US CONSUMERS OF
THINK THEY'RE GOING TO BE
GETTING A SEVEN PERCENT RETURN
ON INVESTMENT. BUT BECAUSE
SOMETHING WASN'T VERIFIED OR
BECAUSE SOMETHING WASN'T
DISCLOSED.
THE MAIN LOSE MONEY ON THE DEAL
THEY MAY HAVE A NEGATIVE CASTLE
IT MAY GO FROM SEVEN PERCENT TO
A TWO PERCENT CAP.
SO THERE ARE COMPANIES OUT THERE
THAT DO THESE ABBREVIATED
UNDERWRITING SO THERE ARE SOME
THAT LIKE TO DO HIGH LEVELS OF
ONE.
SO THE ONES THAT WOULD LIKE TO
DO THE HIGH LEVEL OF ONE CAN
DECIDE FOR THEMSELVES WHETHER
THEY WANT TO ASSUME THAT EXTRA
LIABILITY AND GO THE EXTRA MILE
TO MAKE SURE THAT THE
INFORMATION THAT HAS BEEN
PROVIDED BY THE SELLING BROKER.
CAN IN FACT BE VERIFIED BY THE
BUYER'S BROKER WHO'S GETTING
PAID A VERY HEALTHY COMMISSION.
TO VERIFY THAT INFORMATION AND
BY THE WAY IF A IF A BROKERAGE
DECIDES THEY WANT TO GO WITH
THE.
THE HIGHER LEVEL OF
UNDERWRITING. LA OR DISCLOSURES
THEY CAN IN FACT EVEN ASK FOR A
HIGHER FEE FOR THAT BY LAW SO
COULD BE EEN A REVENUE
GENERATOR FOR. FOR THE REAL
ESTATE INDUSTRY TO GIVE THE
COMFORT LEVEL TO THE BUYER THAT
THEY'RE GETTING WHAT THEY THINK
THEY'RE GETTING.
OKAY BUT IS THERE A STANDARD A
HIGHER STANDARD.
FOR SOMEONE NOT TAKING THE
OPTIONAL ADDITIONAL DISCLOSURE
NO AT THAT IT WAS ADDRESSED. YOU
KNOW AND I'D BE HAPPY TO WORK
WITH THE OPPOSITION TO CLARIFY
THAT LANGUAGE TO MAKE SURE THAT
IS IN FACT REALLY TERRIFIED
COULD.
.
SO IT SOUNDS LIKE AUTHORS
WILLING TO WORK WITH YOU HE
SAYING THAT HE DOESN'T THINK
THERE'S ANY ADDITIONAL LIABILITY
EXPOSURE.
ON THE STANDARD.
PORTION OF YOUR BILL. COULD YOU
PLEASE RESPOND TO THERE ARE I
MEAN. AS FAR AS A BILL IN PRINT
AND BEAT ME DISAGREED BECAUSE IF
YOU TAKE A LOOK AT THE FIRST
PORTION AND AND ONE OF ONE SEVEN
SIX.
A ONE.
THE A IT HAS A SUBSTANTIAL IT
REDEFINES HER UNDER CURRENT LAW.
THAT THAT REAL STICKING SUSPEND
SOME HE'S LICENSE FOR MAKING
SUCH A SUBSTANTIAL
MISREPRESENTATION.
IT'S OF A LICENSEE MAKES A
SUBSTANTIAL MISREPRESENTATION
WHICH SEEMS PRETTY SELF EVIDENT.
THAT WOULD COULD RESULT IN A
LICENSE LOS.
THIS BILL RE DEFINES.
SUBSTANTIAL MISREPRESENTATION
AND SAYS A SUBSTANTIAL WAS RAPID
AND REPRESENTATION WOULD
INCLUDE.
FAILURE TO REPORT ANY OF THE
FOLLOWING AND THEN IT GOES
THROUGH A LIST OF ITEMS. OF A
FAILURE TO REPORT NOT BASED ON
KNOWLEDGE
SIMPLY A FAILURE TO REPORT A
NUMBER OF ITEMS. ONE OF THOSE
ITEMS FOR EXAMPLE IS THE FAILURE
TO REPORT ENVIRONMENTAL ISSUES
ON THE PROPERTY.
SO LET'S SAY I'M A LICENSEE I
HAVE NO IDEA ABOUT THIS PROPERTY
AT THE AYE ABOUT ENVIRONMENTAL
ISSUES CONCERNING HIS PROPERTY.
BUT NOW THE LAW THIS LAW
REDEFINES. MISREPRESENTATIONS
SAYING IF I FAILED TO REPORT
ENVIRONMENTALLY SHE'S ABOUT A
PROPERTY I COULD LOSE MY
LICENSE.
SO THAT MEANS I WOULD HAVE TO
GET FOR EXAMPLE PHASE ONE
ENVIRONMENTAL REPORT. WHETHER OR
NOT MY CLIENTS WANT IT BECAUSE I
COULD BE IN TROUBLE FOR FAILING
TO REPORT I COULD LOSE MY
LICENSE IMMIGRANT ISSUE COULD
YOU REPORT.
BUT YOU DON'T HAVE THAT
INFORMATION.
BUT THAT'S WHAT THAT WHOLE TO
HARMLESS.
NOT AS WRITTEN BECAUSE IT SAYS
FAILURE TO REPORT ENVIRONMENTAL
ISSUES ON THE PROPERTY.
MR SHOULD THE CHAIR IF I COULD.
MR.
SENATOR GAINES AYE IN THE SECOND
SECTION OF THE BILL WHICH COVERS
THE OPTIONAL.
CERTIFIED DISCLOSURE AS AN
OPTION IT SAYS.
AND I SAY WE PLACED PROTECTIONS
FOR THE REALTOR AND AGENTS TO
ENSURE THAT ANYTHING OUTSIDE THE
CONTROL THAT MAY RENDER
DISCLOSURE OBSOLETE OR
INACCURATE WOULD NOT PUNISH A
REALTOR OR HOLD THEM FINANCIALLY
ACCOUNTABLE WE BELIEVE WE PUT
THOSE PROTECTIONS IN THERE.
BUT AGAIN I'D BE VERY HAPPY TO
WORK WITH THE OPPOSITION TO.
MAKE SURE THE INTENT OF THE BILL
IS EXACTLY THAT THAT THIS IS
OPTIONAL AND THAT THAT THESE HOT
THIS HIGHER LEVEL OF DISCLOSURE
UNDERWRITING.
THAT THE BROKER UNDERSTANDS
THAT THERE IS A HIGH A HIGHER
LEVEL OF VERIFICATION. THAT THEY
CAN BE HELD ACCOUNTABLE IF THE
INFORMATION THEY'RE PROVIDING
IT'S NOT ACCURATE AND WORKING
WITH REAL ESTATE PROFESSIONALS
FOR OVER THIRTY FIVE YEARS MY
DAD WAS A REAL ESTATE BROKER. I
KNOW THEY DO THE BEST THAT THEY
CAN DO TO PROVIDE APPROPRIATE
INFORMATION I'M NOT BY ANY MEANS
TRYING TO CREATE ANY KIND OF A
LEGAL TRAP. WHEN I'M TRYING TO
DO IS MAKE SURE THAT WHEN WE
HAVE INNOCENT PEOPLE THAT ARE
MAKING INVESTMENTS A COMMERCIAL
PROPERTY THAT DON'T HAVE THE
SAME DISCLOSURES IS RESIDENTIAL.
PROPERTIES THAT THEY BE GIVEN
THE BENEFIT OF THE DOUBT THAT
THEY UNDERSTAND THAT WHILE THEY
MAY SAY IT'S A SEVEN PERCENT CAP
IF IT IS AN UNCERTIFIED
UNDERWRITING.
DISCLOSURE THAT THEY HAVE TO
DISCLOSE TO THE BUYER THAT
LISTEN.
WE HAVE VERIFIED WITH THE SELLER
THAT THIS IS IN FACT THE CASE.
BOB IS WHAT WE BELIEVE YOU'RE
GOING TO GET OR IF YOU WOULD
LIKE US WE CAN DO A HIGHER LEVEL
ONE AND WE WILL VERIFY EVERY
POINT TO MAKE SURE TO THE BEST
OF OUR KNOWLEDGE. THAT THE SEVEN
PERCENT CAP THAT YOU'RE BEING
TOLD YOU'RE GONNA MAKE YOU ARE
IN FACT I THINK IT IT'S ALL JUST
A CONSUMER PROTECTION IT'S
COMPLETELY OPTIONAL PROVIDES NO
ADDITIONAL LIABILITY TO ANY
BROKERS THAT EXIST OUT THERE
TODAY. UNLESS THEY WANT TO
ASSUME. I WOULD DUH.
JUST.
PROSTITUTE YOUR WORD THAT YOU
WORK WITH VARIOUS OFFERED
ABSOLUTELY SOCIALIZATION AND.
SUPPORT YOUR BILL THANK YOU.
THANKS SENATOR GAINES THANK YOU
ANSWER STONE I AM WHO I HAVE TO
RESPECTFULLY DISAGREE.
I THINK.
AS LONG AS SECTION ONE IS IN
THE VIDEO IT DOES NOT LEAVE IT
AS A OPTIONAL ON. GEORGE FOR. A
BROKER AREA I THINK IF YOU'RE
WILLING TO AMEND SECTION ONE OUT
I THINK YOU GET TO WHERE I WE'RE
ALL TRYING TO GET TO BUT. AND IT
KERN STATED DOESN'T.
I WOULD BE HAPPY TO WORK WITH
SITE YOU MISTER CHAIRMAN AND THE
OPPOSITION TO TAILOR THE
LANGUAGE TO.
FULFILL THE SPIRIT OF WHAT THE
BILL'S TRYING TO DO AND THAT'S
JUST PROCESS PROTECT CONSUMERS.
TO MAKE SURE THAT THEY
UNDERSTAND THAT THE INFORMATION
ARE GETTING ABOUT A PROPERTY
EITHER BEEN VERIFIED BASICALLY
ARE NOT VERIFIED SO THEY CAN
MAKE MAKE AN EDUCATED.
CHOICE AS TO WHETHER NOT TO
INVEST OUR LIFE SAVINGS IN A
PIECE OF PROPERTY AND HOPEFULLY
IT. LIVE ON IT BY I GET YOUR
INTENTIONS HERE AND THERE THEIR
LAUDABLE THEY HAVE A VERY HARD
AUTO. WELL INTENDED BUT AGAIN I
I THINK THAT'S WHERE YOU I'M
THERE ARE.
THE CONCERN FROM THE. CALIFORNIA
ASSOCIATION REALTORS BASED ON.
WHAT THE AYE SECTION ONE AND
SECTION ONE REACHED ITS NOT A
VOLUNTARY ACTIONS ON?
IF YOU'RE AGAIN WILLING TO AMEND
THAT OUT OF THERE TODAY WE GET.
PROBABLY HAVE SOME CONVERSATION.
MOVED ALONG BUT I'M NOT PREPARED
TO SUPPORT IT AS IT IS TODAY.
YEAH PROMOTIONAL YET IN MOTION
SO NO I I WANT TO WORK WITH THE
CHAIR SO I'M WILLING TO AMEND
OUT.
LANGUAGE.
.
IN AN EFFORT TO BOOT THE BILL
FORWARD.
THAT. I HOPE HE'S YOU KNOW I'M
NOT AN ATTORNEY.
SO THE ICE I I WOULD LIKE TO
MAKE SURE THE SCOPE OF IT TENDED
TO BE. SO I I WOULD
BE AMENABLE TO AMENDING OUT A
SECTION IN ORDER TO TRY TO
FACILITATE. THE MOVEMENT OF THE
BILLS TO THE NEXT LEVEL AND AND
I ABSENT THAT I WE'RE GOING ON.
RETAIN THE RIGHT TO CALL THE
BILL BACK TO COMMITTEE IF THAT
IN FACT ISN'T DONE SO.
ABSOLUTELY SENATE AGAINST IRAQ
AND THEN MY MOTION.
YEAH THAT WOULD MAKE A MOTION TO
MOVE THE BILL SPACE ON THE
AMENDMENTS THAT YOU'VE POSED
THIS YEAR.
THANK YOU THANK YOU.
THANK YOU MISTER CHAIRMAN I
APPRECIATE THE CONSIDERATION IT.
S. WITHIN THE LAST WEEK.
OKAY. LA SO WE HAVE A MOTION TO
PASS AS AMENDED TO BE TAKEN INTO
JUDGE JUDICIARY. COMMITTEE
SETTLE MADAM SECRETARY PLEASE
CALL THE BILL.
I'M NICK COLUMNS ARE.
MOTION IS TO PASS TO JUDICIARY
COMMITTEE SENATOR BRADFORD AYE
BRADFORD AYE BIDAK.
GAINES GUILTY OF GAINES AYE
GALGIANI. WESO LARA PORTANTINO.
HOW WE HAVE TWO VOTES THERE ARE
WE HAVE A LOT AYE ABSENT MEMBERS
I'M GOING TO LEAVE THE ROLL PIN
ARE WE HAVE STATUS ON?
IF MEMBERS ARE COMING BACK TO
COMMITTEE.
SO THE POSSIBILITY THAT OR I
ISSUE ON CALL AND I WILL.
WE'LL LEAVE WORLD OPEN FOR THE
NEXT TEN MINUTES FOR. THOSE
RETURNING UP.
.
SENATORS THANK YOU FOR
CONSIDERATION
THE ROLE ON THAT.
MEMBERS.
OUR OUTSTANDING ITEMS.
SENATE BILL EIGHT TWENTY SIX
MOTION IS TO PASS TO DO
JUDICIARY. CHAIR VOTING AYE.
LARA AYE. LARA AYE.
SENATE BILL EIGHT THIRTY EIGHT
MOTIONS TO PASS WITH AMENDMENTS
TO BE TAKEN INTO TO SHERRY.
CHAIR VOTING AYE.
SENATOR GALGIANI.
LARA AYE FLORA AYE.
SIX.
THIS ONE HAS SIX.
SENATE BILL NINE THIRTY. DO PASS
WITH AMENDMENTS TO BE TAKEN IN
GOVERNANCE AND FINANCE CHAIR
VOTING. AYE. SENATOR LARA I'M.
LARA I.
SEVEN.
SENATE BILL TEN EIGHTY SEVEN
MOTIONS TO PASS TO
APPROPRIATIONS.
CHAIR VOTING I SENATOR LARA.
LARA AYE. SEVEN.
SENATE BILL ELEVEN SEVENTY FOUR.
DO PASSED WITH AMENDMENTS TO BE
TAKEN IN JUDICIARY.
CARE VOTING AYE. GALGIANI WESO
LARA.
PORTANTINO.
IT IS.
OUR.
I'M SORRY SAY IN MEMORY COOK.
YEAH BILL FILLS TO THE LACK OF.
VOTE.
SENATE BILL TWELVE ZERO ONE DO
PASS WITH AMENDMENTS TO BE TAKEN
IN JUDICIARY. CHAIR VOTING AYE
SENATOR LARA
LARA MONEY THAT HAS
SEVEN.
SENATE BILL TWELVE THIRTY FIVE
MOTION IS TO PASS WITH
AMENDMENTS TO BE TAKEN IN
JUDICIARY CHAIR VOTING AYE.
GALGIANI LARA. LARA AYE WITH HIS
FULLER.
THAT.
THAT IS OUT THERE BILLS UP.
SENATE BILL THIRTEEN SEVENTY
NINE MOTION IS DO PASSED TO I'M
SORRY MOTION IS DO PASS AS
AMENDED. TO APPROPRIATIONS BY
CHAIR VOTING AYE.
GALGIANI LARA.
LARA AYE WHEN HIS SIX.
CONSENT CALENDAR ITEM FOR AND
NINE MOTION IS TO PASS
SHARE VOTING AYE. LARA.
LAURA I THINK PHILOSOPHICALLY.
I THINK THAT CONCLUDES OUR
BUSINESS FOR TO DAY FOR BANKING
AND FINANCIAL INSTITUTIONS ON.
FACE ON THAT WE STAND ADJOURNED.
THANK YOU ALL FOR YOUR.
BUT