FINANCIAL BANKING INSTITUTE I
MEAN BANKING AND FINANCE
INSTITUTION COMMITTEE I SEE WE
HAVE OUR FIRST OUT THERE --
ASSEMBLYMAN STONE IF YOU'RE
READY TO YOU HAVE A. B..
THIRTY EIGHT WE'RE JUST DOING
[inaudible]
THANK YOU. TO KAREN SENATORS.
AB THIRTY EIGHTS HAD A BIT OF
SECURITIES PATH.
IT IS THE ESSENTIALLY CLEAN UP
BILL TO THE STUDENT LOAN
SERVICING ACT WHICH WAS PASSED
IN TWO THOUSAND AND SIXTEEN AND
WAS MET TO CLEAN UP A NUMBER OF
THE TO THE ISSUES THAT IT HAD
COME UP WITH THAT.
LAST YEAR BEFORE THE ACT
ACTUALLY TAKES A FACT WHICH WILL
BE JULY ONE OF THIS YEAR.
AND I'M HAPPY TO THAT WE HAD A
CHANCE OR VERY CLOSE TO THEIR
STAFF.
WORK WITH STATE DEPARTMENT
BUSINESS OVERSIGHT COME UP WITH
SOME AMENDMENTS FOR EXAMPLE TO
AGREE WITH THE EDUCATION CREDIT.
MANAGEMENT COMPANY CMC WHICH IS
A GUARANTEE AGENCY.
PLAN A FEW OTHER STAKEHOLDERS
WHO WERE CONCERNED ABOUT THE
IMPLEMENTATION OF THE BILL SO
WHAT THIS BILL AB THIRTY EIGHT
DOES IS ENSURES THAT.
THAT WERE A WIND BETTER WITH
FEDERAL LAW AND FEATURES
SMOOTHER IMPLEMENTATION OF THE
STUDENT LOAN SERVICING ACT
REMIND YOU THAT THAT WAS THAT
AND I THINK CALIFORNIA.
PAST COUPLE OF YEARS AGO AND HAS
LED.
TO A NUMBER OF OTHER STATES
FOLLOWING OUR LEAD AS THE
FEDERAL GOVERNMENT IS BACKING
OFF ON PROTECTIONS FOR STUDENT
LOAN BORROWERS CALIFORNIA NOW
NUMBER STATES HAVE STEPPED UP.
THIS IS CLEAN UP AS WE TRY TO
MOVE IT FORWARD AND I
RESPECTFULLY ASK YOUR AYE VOTES.
THE WITNESSES IN SUPPORT.
GOOD AFTERNOON CHAIR AND MEMBERS
OF THE COMMITTEE MY NAME IS
SHOULD GO TERRACE AND I AM THE
PRESIDENT OF THE UC STUDENT
ASSOCIATION AND JUSTICE MONTH I
GRADUATED FROM THE UNIVERSITY OF
CALIFORNIA SANTA CRUZ SOME VERY
EXCITED ABOUT THAT.
SOME OF THE PRESIDENT FOR THE
UC'S TO ASSOCIATION I REPRESENT
A QUARTER MILLION STUDENTS AS
WELL AS A NETWORK OF ALUMNI.
WHOSE DREAMS FOR HIGHEREDUCATION
AND ECONOMIC MOBILITY
SERVED BY THE UNIVERSITY OF
CALIFORNIA.
THEREFORE ON BEHALF OF THE UC
CERTIFICATION I THIRTY EIGHT THE
UC LEADS THE NATION IN EDUCATING
STUDENTS FROM LOW INCOME AND
MARGINALIZE BACKGROUNDS.
SEVERAL OF ITS INSTITUTIONS STOP
EVERY LIST ON AFFORDABILITY AND
ACCESSIBILITY BUT THAT DOESN'T
MEAN THAT STUDENTS ARE NOT
EQUALLY PRAY TO STUDENT LOAN
PREDATORS.
IN CALIFORNIA ALONE THERE NEARLY
FOUR POINT TWO MILLION STUDENT
LOAN BORROWERS WHAT THE TOTAL
STUDENT LOAN DEBT OF ONE POINT
TWO BILLION DOLLARS MANY OF WHOM
ARE IN THE UC SYSTEM.
EVEN STUDENTS WHO RECEIVE FULL
ACADEMIC SCHOLARSHIPS AND GRANTS
FIND THEMSELVES TAKING OUT LOANS
FOR SUMMER SESSION BECAUSE THEY
COULDN'T GET INTO THE CLASSES
DURING THE REGULAR ACADEMIC
YEAR.
OTHERS FIND THEMSELVES TAKING
OUT LOANS FOR FOOD HOUSING AND
HEALTH CARE BECAUSE THE COST OF
EDUCATION TODAY IS NOT LIMITED
TO TUITION AND FEES.
NO MATTER THEIR INCOME OR OF
THEIR FAMILIES STUDENTS AND
PARENTS DESERVE TO KNOW THAT THE
MONEY THEY ARE TAKEOUT FOR
STUDENT LOANS WILL NOT BECOME.
A LIFELONG DEBT SENTENCE BECAUSE
OF FEDERAL REGULATION ON THE
STUDENT LOAN INDUSTRY.
THERE ARE NO CONSISTENT FEDERAL
REGULATIONS OF STUDENT LOAN
SERVICERS.
WHICH MEANS THOUGHT STUDENTS WHO
HAVE LIKELY NEVER NAVIGATED A
BORROWING AGREEMENT BEFORE IN
THEIR LIVES WE RECEIVED
INFORMATION THAT IS
UNNECESSARILY CONFUSING AND
UNRELIABLE.
THERE'S NO REASON TO MAKE
BORROWING LOANS FOR EDUCATION
MORE DIFFICULT EXCEPT FOR THE
MOTIVATION BY SERVICERS TO
PROFIT OFF OF STUDENTS AND
FAMILIES WHO TAKE OUT STUDENT
LOANS.
OUT OF PURE NECESSITY.
THE EFFECTS OF THIS HAVE LONG
TERM IMPACTS FOR INDIVIDUALS AND
FOR THE STATE OF CALIFORNIA.
ALUMNI WITH HIGH DEBT AND ARE
LESS LIKELY TO TAKE LOWER PAIN
PUBLIC SECTOR JOBS AND MORE
LIKELY TO STIFLE THEIR SPENDING
ULTIMATELY HURTING OUR ECONOMY.
THE RAPIDLY INCREASING AMOUNT OF
STUDENT DEBT IN THE UNITED
STATES COULD VERY EASILY BECOME
THE NEXT FINANCIAL CRISIS WITH
SO MANY STUDENT LOAN BORROWERS
STRUGGLING.
STRUGGLING TO REPAY THEIR LOANS
IS CRITICAL TO HAVE EFFECTIVE
COMMUNICATION WITH CONSUMERS.
WITH THAT I ASK FOR YOUR AYE
VOTE ON THE A. B..
THIRTY THANK YOU ANY ADDITIONAL
WITNESSES IN SUPPORT THANK YOU
MISTER MISTER CHAIRMAN AND
MEMBERS AIR RAID REPRESENTING
EDUCATIONAL CREDIT MANAGEMENT
CORP.
ECM CO I THINK THE AUTHOR
ASSEMBLY MEMBER STONE AND HIS
STAFF ALSO A DV ó IN THEIR
STAFF AND YOUR CONSULTANT.
OF FOR ASSISTANCE IN GETTING AN
AMENDMENT AND WE'RE VERY HAPPY
TO BE HERE IN SUPPORT AND A AND
E. CMC IS A GUARANTEE AGENCY.
THANK YOU THANK YOU NEXT
WITNESS.
THANK YOU MISTER CHAIRMAN I WANT
TO ECHO AND AARON'S COMMENTS I
WHEN I THINK OF THE AUTHOR HIS
STAFF OF THE DEPARTMENT FOR
WORKING.
WITH THE COLLECTION INDUSTRY TO
CLARIFY HOW THE BILL WORKS NAM
IN IMPACTS.
BLOOM PROCESSORS ENOUGH NOT
COLLECTORS --
ENTERS YOUR SUPPORT THANK YOU
THANK YOU.
DAVID REID WITH THE RECEIVABLES
MANAGEMENT ASSOCIATION WE ALSO
SUPPORT OF THIS BILL AND THANK
THE AUTHOR FOR THE CLARIFYING
AMENDMENTS.
THANK YOU.
I HAVE OTHER AND REPRESENT NEXT
IN CALIFORNIA AND SUPPORT
[inaudible]
THANK YOU.
AND OR WITNESSES IN SUPPORT
WITNESSES IN OPPOSITION.
SEEN HEARING --
NINE BRING IT BACK.
YEAH WELL THERE WE ARE APOLOGIZE
AT TED MERMAN FOR THE CALIFORNIA
LOW INCOME CONSUMER COALITION WE
ONLY JUST HEARD ABOUT THE
AMENDMENTS TO THE BILL --
WE SUPPORT --
IN PRINCIPLE THAT BILL AND WE'RE
ACTUALLY QUITE CONCERNED ABOUT
THE AMENDMENT TO REMOVE THE
GUARANTEE AGENCIES FROM.
BY THE BILL WE HAVEN'T HAD AN
OPPORTUNITY --
TO REVIEW THOSE MINUTES BUT WE
WILL BE AYE GETTING IN TOUCH
WITH THE AUTHORS OFFICE ABOUT
THAT THANK YOU VERY MUCH.
THANK YOU.
CHRISTIAN WITNESS ANA LADEN WITH
CONSUMERS UNION ECHO IN THOSE
CONCERNS ABOUT THIS LAST MINUTE
AMENDMENT ALSO NOT HAD TIME TO
REVIEW IT BUT UNDERSTAND THERE'S
ABOUT THREE HUNDRED THOUSAND
CALIFORNIAN BORROWERS WHO HAVE
LOANS.
HELD BY THESE GUARANTEE AGENCIES
WHO WOULD BE.
POTENTIALLY NEGATIVELY AFFECTED
AND HAVE CONCERNS ABOUT IT.
GREAT THANK YOU.
ALRIGHT --
SENIOR MORE WITNESSES ARE
BROUGHT BACK TO COMMIT ANY
QUESTIONS BY COMMITTEE MEMBERS
--
WE'RE LACKING A QUORUM.
YEAH SO --
MISS SHOWN --
WHAT YOU'D LIKE TO CLOSE IN THE
MEANTIME I ASK FOR YOUR AYE
VOTES ARE THINK YOU?
ARE AT TO PER TIME WHEN A QUORUM
IS IS JOBS WOULD BE MORE THAN
HAPPY TO TAKE UP THIS MOTION
MAKE IT VERY MUCH APPRECIATE AND
LET'S BE CLEAR YOU'RE ACCEPTING
--
AMENDMENTS --
YES THE AMENDMENTS THAT ARE.
THAT AMENDMENTS AND WILL BE
ENSURING THAT THOSE ARE GOING TO
BE PUT INTO PRINT YEP PROJECT
THANK YOU VERY MUCH.
AT THE PROPER TIME WE WILL --
TAKE UP THIS MEASURE FROM
[inaudible]
ARE.
AUTHOR WE ARE YOU SEE WE HAVE.
I WAS URBAN OKAY ITEM.
SIX AB.
TWENTY EIGHT EIGHTY FOUR WHEN
YOU'RE READY.
ALRIGHT CHAIRMAN BRADFORD AND
COMMITTEE MEMBERS FIRST I'M
HAPPY TO ACCEPT THE AMENDMENTS
PROPOSED BY THE COMMITTEE AB.
TWENTY EIGHT A FOR PROVIDES A
MUCH NEEDED UPDATE TO THE REAL
ESTATE LAW WHICH HAS NOT BEEN
UPDATED IN DECADES AND THIS BILL
IS THE RESULT OF MANY
STAKEHOLDER PROP --
MEETINGS TO MAKE SURE THAT THE
PROCESS IS A TRANSPARENT ONE THE
PRACTICE OF REAL ESTATE HAS
CHANGED CONSIDERABLY IN THE
YEARS SINCE MOST OF THE REAL
ESTATE CODE WAS ENACTED AT THAT
TIME.
THE TIME LAWS WERE ENACTED THEIR
WARES -- IN
THERE WERE NO ELECTRONIC
TRANSITION PLATFORM SORT E.
SIGNATURES AND E. LICENSING
DIDN'T EXIST.
NEW TYPES OF BROKERAGE MODELS
HAVE EMERGED MANY LICENSING
MATTERS ARE NOW HANDLED
ELECTRONICALLY THROUGH E.
LICENSING AND THE WITH THE
BUREAU OF REAL ESTATE RATHER
THAN THROUGH MAIL OR WITH PAPER
FORMS.
THIS BILL UPDATES LAW TO
RECOGNIZE THE LICENSING AND
ELECTRONIC SIGNATURES IT CLEAR
FLIES IN ACCORDANCE WITH CURRENT
LINE VARYING --
BROKERAGE MODELS THAT A LICENSEE
MAY BE RETAINED BY A BROKER
EITHER AS AN INDEPENDENT
CONTRACTOR AFFILIATED WITH THAT
BROKER OR AN EMPLOYEE OF
APPROPRIATE ALSO MAKES TECHNICAL
CHANGES TO MAKE THE LAW.
TERMINOLOGY MORE UNDERSTANDABLE
TO CONSUMERS AND MORE
CONSISTENT.
AND I APPRECIATE THE COMMITTEE'S
THOUGHTFUL ANALYSIS AND THE
AMENDMENTS THAT STRENGTHEN THE
BILL.
PARTICULARLY THE LANGUAGE AND
THE SAVINGS COSTS MAKE SURE THAT
CHANGES PROPOSED IN THE BILL DO
NOT CHANGE EXISTING PROTECTIONS.
A AVAILABLE UNDER THE REALISTIC
CODE [inaudible]
ISN'T SUPPORT.
THANK YOU.
THINK THE CHAIR IN THE CANNELLA
MEMBERS FOR ALLOW ME ALLOW ME TO
SPEAK TODAY MY NAME IS SANDRA
WILDLY WITH THE CALIFORNIA
ASSOCIATION OF REALTORS WHERE
THE SPONSORS OF AB TWO EIGHT
EIGHT FOUR AND BELIEVE FOR A
HALF FOR THE REASONS STATED BY
THE IS.
ASSEMBLY MEMBER IRWIN.
THIS IS A VALUABLE AND IMPORTANT
UPDATE TO THE REAL ESTATE LAW.
THE BILL IN ITS CURRENT FORM
REFLECTS THE RESULT OF MANY
STAKEHOLDER MEETINGS AND
MEETINGS WITH COMMITTEE
CONSULTANTS TO ADDRESS ANY
CONCERNS RAISED BY THE BILL.
THE SEXY THE SUCCESS OF THESE
MEETINGS IN ADDRESSING CONCERNS
I THINK CAN BE SEEN IN THE LACK
OF OPPOSITION TO THIS BILL.
WE WOULD LIKE AND PICK
PARTICULAR THANK THE COMMITTEE
FOR WORKING WITH US ON THIS BILL
WE BELIEVED AMENDMENTS THAT ARE
BEING OFFERED TODAY WILL LOOK
FURTHER AT FOR THE CLARITY.
AND ADDRESS ANY OUTSTANDING
CONCERNS ABOUT THE BILL I'M
STARTING TO FEEL THERE IS LIGHT
AT THE END OF THIS TUNNEL.
SO WHO WHO WE RESPECTFULLY ASK
FOR YOUR AYE VOTE AND I'M HAPPY
TO ANSWER ANY QUESTIONS THANK
YOU [inaudible]
CURRENT PALM.
ANY ADDITIONAL WITNESSES IN
SUPPORT.
XENA WITNESSES IN OPPOSITION.
ROOM SCENE NOT OKAY --
QUESTIONS BY COMMITTEE.
NONE.
AGAIN --
MISTER WE'RE LACKING A QUORUM AS
SOON AS A QUORUM ESTABLISH WILL
BE MORE THAN HAPPY.
TO MOVE THIS MEASURE.
THANK YOU THEY WOULD LIKE.
WHEN YOU HAVE A QUORUM --
HOPE THAT THEY'LL VOTE YES.
THANK YOU THANK YOU --
NEXT UP BUT SHE ADMITS ABELARD
CURRY -- THE
AGGIES ARE CURRY AB.
TWENTY SIXTY THREE THAT'S CLOSE
ENOUGH [inaudible]
GOOD AFTERNOON.
THANK YOU MISTER CHAIRMAN
MEMBERS.
I WANT TO START OFF BY SAYING
THAT I BELIEVE PACE IS A GOOD
PROGRAM.
HOWEVER IT IS STILL NOT REQUIRED
FOR PACE PROVIDERS TO DETERMINE
IN HOMEOWNERS ABILITY TO REPAY.
THE LEAN PLACED ON THE PROPERTY
PRIOR TO ENTERING.
AN ASSESSMENT OR HOME
IMPROVEMENT CONTRACT.
THIS SIMPLY DOES NOT MAKE SENSE.
AB TWENTY SIXTY THREE WILL MAKE
CERTAIN THAT A HOMEOWNERS
ABILITY TO PAY THE ASSESSMENT.
IS FULLY VERIFIED BEFORE SIGNING
AN ASSESSMENT OR HOME
IMPROVEMENT CONTRACT.
AND BEFORE WORK ON THE
IMPROVEMENT ACTUALLY BEGINS.
THE TIMING OF THE VERIFICATION
IS CRUCIAL TO PREVENTING
PROPERTY TAX DEFAULTS AND
REDUCING THE RISK OF PROPERTY
OWNERS LOSING THEIR HOMES.
MY GOAL IS NOT TO PLACE AN
INSURMOUNTABLE REQUIREMENTS ON
PACE PROVIDERS BUT BELIEVE THAT
MOVING THE TIMING OF
UNDERWRITING TO THE BEGINNING OF
THE PROCESS IS COMMON SENSE.
THANK YOU MAJESTIC.
OKAY WITNESSES IN SUPPORT.
I THINK MISTER CHAIR MY NAME IS
TED MERMAN FROM THE CALIFORNIA
LOW INCOME CONSUMER COALITION WE
SUPPORT --
THE BEAST.
TWENTY SIXTY THREE OUR ABILITY.
TO REPAY ANALYSIS IS MEANINGLESS
TO CONSUMERS UNLESS IT HAPPENS
BEFORE THEY ENTER INTO A
CONTRACTUAL FINANCIAL OBLIGATION
THIS IS COMMON SENSE.
STANDARD PRACTICE IN THE LENDING
INDUSTRY.
THE IDEA OF THE LAND FIRST AND
CHECK THE MATH LEADER IS NOT A
RESPONSIBLE WAY TO DO BUSINESS
ESPECIALLY WHEN.
THE CONSUMERS HOME IS ON THE
LINE AB TWENTY SIXTY THREE WOULD
MAKE SURE THAT DOESN'T HAPPEN IT
WOULD INSTEAD CODIFY A
FUNDAMENTAL PRINCIPLE OF
CONSUMER PROTECTION. FOR THESE
REASONS WE THANK THE AUTHOR FOR
IT AND ASK FOR YOUR AYE VOTE
[inaudible]
SUPPORT.
SHARON MEMBERS OR AGENTS ON THE
CALIFORNIA CREDIT UNION LEAGUE
AND WE THINK THE PROVISIONS IN
THIS BILL ARE INCREDIBLY
IMPORTANT TO MOVING CONSUMER
PROTECTIONS FORWARD IN THIS
PROCESS WE NEED TO CONTINUE.
IS THERE ARE PROTECTIONS IN THE
PACE PROGRAM TO MAKE SURE THAT
CONSUMERS DO NOT LOSE THEIR HOME
THEIR MOST VALUABLE ASSET AND
WITH THIS PRODUCT THAT IS SOLD
BY CONSUMERS ARE BY CONTRACTORS
BOTH THE HOME IMPROVEMENT
CONTRACT.
AND THE FINANCING CONTRACT IT'S
INCREDIBLY IMPORTANT TO MAKE
SURE THAT THAT IS DONE EARLY IN
THE PROCESS TO PROTECT CONSUMERS
SO WE APPRECIATE THE AUTHOR FOR
HER -- WORK
AND AT ASPIRIN ITEMS.
THANK YOU MISTER CHAIRMAN
ROBINSON ON BEHALF OF ACCOUNT
CALIFORNIA ASSOCIATION OF COUNTY
TREASURERS AND TAX COLLECTORS IN
SUPPORT.
GREAT THANK YOU.
MISTER CHAIR COMMANDER MEMBERS
PADS ANGELA WITH KP PUBLIC
AFFAIRS HERE ON BEHALF OF THE
CALIFORNIA MORTGAGE BANKERS
ASSOCIATION ALSO IN SUPPORT OF
THE BILL.
THANK YOU VERY MUCH.
THANK YOU WIDELY WITH THE
CALIFORNIA ASSOCIATION OF
REALTORS IN SUPPORT OF THE BILL
BRAID.
THE ADDITIONAL WITNESSES IN
SUPPORT.
SCENE NINE WITNESSES.
EXIST SUPPORT COME FOR OUR
WITNESS IN OPPOSITION.
IS OPPOSITION PRIESTS HAVE A
SEAT [inaudible]
BUT THANK YOU MISTER CHAIR
MEMBERS MY NAME IS CHRIS ROGERS
I'M WITH WHITE GREEN ENERGY FIND
ONE OF THE LARGEST PAYS
PROVIDERS.
I A CERTAIN IN CALIFORNIA AND
ACROSS THE UNITED STATES WE ARE
OPPOSED UNLESS AMENDED THAT WE
ARE.
VERY THANKFUL OF FLAT TO THE
AUTHOR FOR HER COMMITMENT TO
WORKING WITH US ON THIS TIMING
ISSUE TO MAKE SURE THAT WE DO.
ALLOW PACE TO CONTINUE TO THRIVE
IN CALIFORNIA AND HAVE CONSUMERS
HAVE ACCESS TO FINANCING THAT
MAKES A REAL DIFFERENCE IN THEIR
LIVES WHILE ALSO NOT OVERBURDEN
THE PROCESS IN A WAY THAT.
MAKES PART PACE UNATTAINABLE IN
CALIFORNIA.
MISTER CHAIRMAN MEMBERS CASSIE
GILSON ON BEHALF OF RENOVATE
AMERICA ALSO IN OPPOSE A LET'S
AMENDED AND THANK THE AUTHOR AND
HER STAFF VERY MUCH FOR THEIR
DILIGENCE IN WORKING WITH US.
WE'VE HAD I THINK THIS IS THE
FOURTH PACE BILL IN TWO YEARS
GLAD THAT ALMOST TO A MEMBER
FOLKS ARE SUPPORTIVE OF THE
PROGRAM AND WANT TO MAKE SURE
THAT IT COMES WITH ROBUST
CONSUMER PROTECTION THAT'S OUR
GOAL IS WHILE WE LOOK FORWARD TO
CONTINUE TO WORK WITH HER.
GOING FORWARD. TO SHOW WHAT IS
IN OPPOSITION.
MARGARET GLAD STATE REPRESENTING
OUR NEW FINANCIAL AND I ECHO THE
REMARKS OF THE TWO PREVIOUS
TESTIMONIES WE ALSO HAVE AN
OPPOSE LESS MAN AT AND
APPRECIATE THE ABILITY TO WORK
WITH THE AUTHOR ON OUR ISSUES.
THANK YOU.
LEAH WIGS WITH CLEAN FUND
COMMERCIAL PACE FINANCING WE ARE
NOT TAKING A POSITION ON AB
TWENTY SIXTY THREE AT THIS TIME
BUT WE ARE SEEKING AN A
CLARIFYING AMENDMENT.
CLEAN FUN COMMERCIAL PAYS
CAPITAL IS THE LEADING PROVIDER
OF COMMERCIAL PROPERTIES ES
CLEAN ENERGY FINANCING.
HAVING FINANCED MORE THAN EIGHTY
NINE MILLION DOLLARS IN PEACE
FINACINGS IN CALIFORNIA ALONE.
WHICH HAS SUPPORTED THE
REVITALIZATION OF HOSPITALS
COMMUNITY CENTERS AND OFFICE
BUILDINGS.
WE BELIEVE A RECENT AMENDMENT TO
AB TWENTY SIXTY THREE WOULD HAVE
THE EFFECT OF UNINTENTIONALLY
REGULATING PREVIOUSLY EXEMPT
COMMERCIAL PAYS COMPANIES.
IN A WAY THAT WASN'T INTENDED.
SPECIFICALLY REGULATIONS WHICH
REQUIRE ALL P. SOLICITORS
INCLUDING CLEAN FUND AND PLOY
USE TO REGISTER WITH A REGULATED
PROGRAM ADMINISTRATOR SUCH AS
SUCH AS A RESIDENTIAL.
PACE ADMINISTRATOR WHILE
CONTINUING TO EXEMPT COMMERCIAL
ADMINISTRATORS AT THE CORPORATE
LEVEL.
WE'VE MET WITH MANY OF YOU TO
CLARIFY LANGUAGE IN PARAGRAPH BE
OF SECTION TWO TWO ZERO ONE
EIGHT OF AB TWENTY SIXTY THREE
TO PRESERVE THE CPS INDUSTRY IN
CALIFORNIA.
AND AGAIN AT THIS TIME WE ARE
NOT TAKING A BROADER POSITION ON
AB TWENTY SIXTY THREE BATTERS
SIMPLY SEEKING.
CLARIFYING LANGUAGE THANK YOU.
THANK YOU ANY ADDITIONAL EDITS
IN OPPOSITION.
SHE NINE AGAIN AND BRING IT TO
THE COMMITTEE.
BECAUSE CENTER OF PORTANTINO.
THANK OU MISTER CHAIRMAN THANK
YOU TO THE AUTHOR THIS IS INDEED
AN IMPORTANT.
UP BILL AND PROGRAM --
IF I RECALL LAST YEAR WITH THE
TO BOB NAY BELSER CAME LATE IN
THE PROCESS IN.
WHICH IS WHY WE NEED SOME OF THE
THINGS AND I KNOW OUR COLLEAGUE
--
THE GENERAL HAS A SIMILAR BILL.
AND SO I JUST MIGHT REQUEST AS
YOU YOU IN THE GENERAL HOPEFULLY
ARE WORKING CLOSELY WITH.
THE INDUSTRY AND YOU KNOW BY
CAMEL LEADERS TO FIX WHAT WHAT
NEEDS TO BE FIXED SO.
THE GENERAL AND I HAVE MET AND
WE HAVE AGREED ON MOVING FORWARD
AND I WERE IN AND GREAT OF WE
WANNA MAKE SURE YOU WATCH OUT
FOR THE CONSUMERS AND THE YEAH.
TO WORKING TOGETHER.
THANK YOU IT WILL CONTINUE TO
WORK WITH THE OF FOR THE
AMENDMENTS [inaudible]
HA.
MS CURRIE WHICH LIKE COOK CLOSE
IS THE BEST WAY I VOTE WHEN THE
TIME COMES THANK YOU APPRECIATE
IT.
I THINK YOU THANK YOU STILL
WITHIN A QUORUM SO WERE MOVING
AWAY THROUGH THOSE.
ON NEXT UP IS --
CINNAMON CALDERON A. B..
THREE FIVE FOUR THANK YOU MISTER
CHAIR AND MEMBERS.
CALIFORNIA FAMILIES LOOKING TO
PURCHASE A HOME IN THE STATE ARE
FORCED TO COMPETE AT TIMES
AGAINST INSTITUTIONAL INVESTORS
WHO HAVE BILLIONS OF DOLLARS ON
HAND TO INVEST A SINGLE FAMILY
HOMES.
SOMETIMES IN AN ALL CASH BID
AGAINST HOME WOULD BE POTENTIAL
HOME BUYERS.
THIS PRESENTS SIGNIFICANT
CHALLENGES FOR FIRST TIME
HOMEBUYERS TENANTS IN
COMMUNITIES THIS NEW TYPE OF
INVESTMENT EQUAL ACTIVITY
REQUIRES PROPER SAFEGUARDS IN
ORDER TO KEEP.
THE AMERICAN DREAM OF
HOMEOWNERSHIP WITHIN REACH FOR
ALL CALIFORNIANS AN
INSTITUTIONAL INVESTOR.
AS A PUBLICLY TRADED CORPORATION
THAT OWNS MORE THAN A HUNDRED
SINGLE FAMILY HOMES IN THE STATE
THAT OCCUPIED BY RENTERS AND
HAVE MORE THAN TEN MILLION
DOLLARS IN --
PROPERTY ASSETS.
INSTITUTIONAL INVESTOR --
DAY CONVERT SINGLE FAMILY HOMES
AND TO PERMIT RENTALS LEAVING
FEWER HOMES AVAILABLE ON THE
REAL ESTATE MARKET FOR FAMILIES
AND FIRST TIME HOME BUYERS. TO
HAVE A CHANCE AT HOME OWNERSHIP
OFTENTIMES.
THESE FAMILIES ARE FORCED TO
pBUYERS HAVE THE UPPER HAND IN
THE MARKET AB THREE FIFTY FOUR
IS A MODEST STEP TOWARDS
UNDERSTANDING THE EFFECT ON THIS
OF THIS TYPE OF CORPORATE
INVESTING IN SINGLE FAMILY HOMES
IN CALIFORNIA.
WE HAVE SEEN THIS TYPE OF
INVESTMENT MODEL OF CONVERTING A
SINGLE FAMILY HOMES INTO RENTALS
TAKE ROOT WITHIN OUR STATE IN
ORDER TO UNDERSTAND THE EFFECT
OF THIS NEW TYPE OF AND
INVESTMENT ACTIVITY.
WE KNEW WOULD NEED TO EXAMINE
THE SIZE AND SCOPE.
HAVE IT WITHIN US CALIFORNIA'S
REAL ESTATE MARKET IT SEEMS
LIKELY THAT THIS MAY REMAIN A
FEATURE OF OUR MODERN HOUSING
MARKET WHERE WE ARE DELAYING
HOMEOWNERSHIP FOR MANY
CALIFORNIANS.
THIS BILL REQUIRE INSTITUTIONAL
INVESTORS THAT TO SUBMIT
PERTINENT INFORMATION TO THE
DEPARTMENT OF BUSINESS OVERSIGHT
REGARDING THE NUMBER OF
RESIDENTIAL PROPERTIES OWNED AND
RENTED ALONG WITH THE TOTAL
DOLLAR VALUE OF ALL ASSETS OWNED
--
LOS ANGELES BILL DOES IS ASK FOR
THESE INSTITUTIONAL INVESTORS TO
REPORT THE INFORMATION HOW MUCH
OF WHAT THEY OWN IN THE DETAILS
WITH REGARDING --
THE PROPERTIES THAT THEY DO OWN.
HOW IT'S TOUGH RIGHT NOW IN
CALIFORNIA FOR HOUSING BECAUSE
WE DON'T HAVE ENOUGH HOUSING
THERE'S ENOUGH BEING BUILT WE
NEED TO BUILD MORE SO OBVIOUS
THERE OBVIOUSLY THERE'S A HIGH
DEMAND?
IT IS UNFAIR FOR SOMEBODY WHO'S
ESPECIALLY A FIRST TIME
HOMEBUYER TO BE COMPETING
AGAINST INTENTIONS INSTITUTIONAL
INVESTOR WHO AT TIMES HAVE BEEN
ABLE TO TAKE FOUR HUNDRED PLUS
MILLION DOLLARS OUT.
IN LOANS TO BUY SINGLE FAMILY
HOMES FOR THE PURPOSES OF YOU
KNOW RENOVATING AND YES WHICH WE
APPRECIATE --
BUT THEN IS RENTING THEM OUT AND
THEN BUNDLING THE RENTS FROM
OTHER PROPERTIES IN AND AND NOW
USING IT AS AN INVESTMENT TOOL
ON THE STOCK MARKET --
WE'RE NOT SAYING YOU CAN'T DO IT
WE'RE NOT SAYING ANYTHING WE'RE
JUST SAYING REPORT THE
INFORMATION SO THAT WE CAN TRACK
IT ANDWE CAN BETTER UNDERSTAND
THE THE THE IMPACT THAT IT'S
HAVING ON FIRST TIME HOMEBUYERS
--
ANYONE WE WANT PEOPLE TO BE HER
FIRST TIME HOME BUYERS ARE AND
YOU KNOW WE CAN MAYBE USE THAT
INFORMATION AT SOME POINT TIME
TO DEVELOP SOME TYPE OF POLICY
THAT ALLOWS US TO CREATE MORE OF
AN ADVANTAGE FOR FIRST TIME HOME
BUYER. TO GET INTO A HOME SO
THAT'S REALLY ALL THIS BILL DOES
THIS REALLY MODEST HIDES MUCH
DIFFERENT THAN WHAT IT STARTED
OUT TO BE WE'VE WORKED A LOT
WITH THE OPPOSITION.
ALWAYS HAPPY TO CONTINUE TO WORK
WITH THE OPPOSITION --
BUT WITH ME TO TESTIFY --
IS JEFFERSON MCGEE --
WITH THE LINES OF CALIFORNIANS
FOR COMMUNITY EMPOWERMENT --
AND I RESPECTFULLY ASK FROM ABLE
[inaudible]
PORT.
THANK YOU CAN YOU HAVE A SEAT OR
YOU CAN DO IT AMERICA CAN HAVE
SIGNUP STATEHOUSE.
THANK YOU MISTER CHAIR.
MY NAME IS A JEFFERSON MIDI.
I'M WHAT THE ALLIANCE OF
CALIFORNIANS FOR COMMUNITY
EMPOWERMENT --
WHICH IS A FEW A BETTER KNOWN AS
ASUS.
AWARE GRASSROOTS STATEWIDE
ORGANIZATION WITH OVER TEN
THOUSAND MEMBERS --
WE WORK.
A TOGETHER WITH OTHER GROUPS --
AS FAR AS HOUSING AND DEALING
WITH THE HOUSING CRISIS RIGHT
NOW.
BUT THIS MEASURE THAT WE'RE
TALKING ABOUT TODAY.
IT WILL HELP PUT MORE.
FAMILIES AND TO HOMEOWNERSHIP
DESPITE REQUIRING INSTITUTIONAL
INVESTORS TO REPORT THE NUMBER
OF HOMES THAT THEY OWN --
BY I THINK THE FAMILIES THEY OWN
TO THE DEPARTMENT OF BUSINESS
OVERSIGHT.
CALIFORNIA FAMILIES ARE LOOKING
TO PURCHASE HOMES BUT WHO ARE
LOOKING OF FORCES PART PURCHASE
HOMES ARE FORCED.
MPD GIVES INSTITUTIONAL
INVESTORS WHO OF BILLIONS OF
DOLLARS TO INVEST IN SINGLE
FAMILY HOMES.
WELL THE AVERAGE FAMILY
STRUGGLES FINANCIALLY THE SAVE
ENOUGH FOR A DOWN PAYMENT.
NO I SEE THIS PERSONALLY AND
WHAT I DO FOR LIVING A REAL
ESTATE BROKER HAVE BEEN A REAL
ESTATE BROKER.
FOR CLOSE TO THIRTY YEARS IN THE
STATE OF CALIFORNIA.
AND YOU'D BE SURPRISED WHEN
WE'RE TAKING PEOPLE OUT TO SHOW
HOMES IN.
THEY'RE BIDDING THAT THERE'S
MULTIPLE OFFERS AND A CASH OFFER
COMES IN.
IT'S KIND OF LIKE.
ALL THE HOMEOWNERS ARE OFF TABLE
BECAUSE YOU KNOW NO ONE'S GONNA
WAIT FOR LONG SO IT'S AN UNFAIR
ADVANTAGE THAT THESE
INSTITUTIONAL INVESTORS HAVE
BECAUSE THEY HAVE.
CASH INSTEAD OF AND THEY'RE
GOING TO THREATEN BUT WE'RE
DEALING WITH THE LOANS AND
PEOPLE QUALIFY FOR LOANS AND IT
DOESN'T.
TAKE MUCH TO TAKE THEM OUT OF
THE RANGE WHERE THEY QUALIFY.
FOR THIS OBSTACLE PRESENTS
SIGNIFICANT CHALLENGES FOR
HOMEBUYERS TENETS.
AND THE COMMUNITIES OF COLOR AS
I MENTIONED BEFORE --
THE MULTIPLE OFFERS THE BIDDING
AND IT RAISES HOME PRICES YOU
KNOW WHEN YOU START [inaudible]
PRICE AND FINISH THAT TEN
THOUSAND BELT DOLLARS HIGHER THE
NEXT SONG ON THE MARK IS GOING
TO BE TEN THOUSAND DOLLARS
HIGHER SHOULD ACTUALLY.
BUT IT.
DISCOURAGES OUR OWN CITIZENS
FROM OWNING HOMES IN THE STATE
OF CALIFORNIA.
THESE INSTITUTIONAL INVESTORS
ARE CONVERTING SINGLE FAMILY
HOMES AND TO PERMIT RENTALS.
WHICH TAKEN OFF THE MARKET
THEY'RE NOT GOING TO BE SOLD SO
PEOPLE THAT ARE LOOKING FOR
HOMES THE MARKET IS A DE.
SUPPLY IS A DECREASED AND THE
RAISING RATS.
SO WHAT THIS BILL DOES IS SIMPLY
[inaudible]
REQUIRES.
THESE --
THESE CLARA INSTITUTIONAL
INVESTORS TO REPORT --
WHAT THEY'RE DOING IN OUR
MARKET?
SO THAT AS THE STATE CAN.
AND WE CAN ATTRACT THEM IT STEVE
THERE'S A PROBLEM AND SEE IF WE
CAN.
ADVERTISEMENT SERIOUS ISSUES --
BEFORE THEY START.
IF B. THREE FIFTY FOUR IS A
SMALL STEP TOWARDS.
UNDERSTANDING THE EFFECTS THAT
THESE.
TYPE OF AND THE INSTITUTIONAL
INVESTORS ARE HAVING I'M
CALIFORNIA HOMEOWNERSHIP.
SO I ASK YOU ICE AS A CITIZEN
REPRESENTED RACE WE SUPPORT AB.
THREE FIFTY FOUR YOU ANY
ADDITIONAL WITNESSES IN SUPPORT.
SCENE NINE WITNESSES IN
OPPOSITION.
THANK YOU MISTER LIGHTS.
GOOD AFTERNOON MISTER CHAIRMAN
AND MEMBERS --
JIM LIGHTS ON BEHALF OF NATIONAL
RENTAL HOME COUNCIL WHICH
COMPRISES THE INSTITUTIONAL
OWNERS OF SINGLE FAMILY HOMES
FOR RENT --
THE INDUSTRY WAS REALLY BORN OUT
OF THE RECESSION.
MOST OF THE VAST MAJORITY OF THE
HOMES OWNED BY THE FOUR FIVE
COMPANIES THAT WOULD BE SUBJECT
TO AB.
THREE FIFTY FOUR WERE ALL
PURCHASED ON THE COURTHOUSE
STEPS WE WERE NOT COMPETING WITH
FIRST TIME HOMEBUYERS WE BROUGHT
BACK PROPERTY TAXES CURRENT FOR
THE LOCAL GOVERNMENTS.
AND WE REALLY DON'T OWN ENOUGH
HOMES -- FOR
REPORTING REQUIREMENT --
OF WHAT WE PASSED OUT THE WHAT
WE'RE TRYING TO ILLUSTRATE --
TO SHOW THE THE VOLUME OF HOMES
THAT EXIST IN THE STATE AND HOW
MANY WE REALLY ON FOR COMPANIES
OWN AT LESS THAN FIFTEEN
THOUSAND HOMES.
OUT OF OVER EIGHT MILLION SINGLE
FAMILY HOMES IN THE STATE.
THAT EQUATES TO LESS THAN TWO
TENTHS OF 1% OF THE STATE'S A
SINGLE FAMILY HOME RANT A STOCK
[inaudible]
SO. FOR IT IS THE ANALYSIS
POINTS OUT THAT THE DEPARTMENT
ESTIMATES COSTS OF OF SEVEN
HUNDRED THOUSAND THAT.
CHARGE WOULD BE APPLIED TO JUST
FOUR FIVE COMPANIES. TO
PROVIDE-THIS INFORMATION BECAUSE
THE
BILL APPLIES ONLY TO PUBLICLY
TRADED COMPANIES.
THE VAST MAJORITY OF THE DATA
POINTS THE BILL CALLS FOR OR
ALREADY PUBLICLY AVAILABLE IN
THE SECURITIES AND EXCHANGE
COMMISSION FILINGS.
OF THOSE COMPANIES I PROVIDED
THAT INFORMATION AS SAMPLES TO
THE MEMBERS OF THIS COMMITTEE
AND AND TO THE AUTHOR --
MIGHT MANY OF THE DATA POINTS
I'M I'M I CAN TALK ABOUT TODAY
WE DON'T THINK THAT IS IT IS
COMPELLING FOR THE STATE TO NEED
TO CHARGE THAT KIND OF MONEY TO
AN INDUSTRY. TO PROVIDE
INFORMATION THAT IS ALREADY
PUBLICLY AVAILABLE AND WE WOULD
URGE THE COMMITTEE TO RETAIN THE
BILL HERE THANK YOU.
GOOD ADDITIONAL WITNESSES IN
OPPOSITION.
SEEN HEARING ON IT ANY QUESTIONS
THE COMMITTEE.
WAS KALRA WHICH LIKE TO RESPOND
TO WHAT THE OPPOSITION STATED
BECAUSE I TO AND WOOD PUBLIC
LIKE THAT WOULD BETTER
UNDERSTAND WHICH IS A SMALL
PERCENTAGE OF THESE INSTITUTES
THE BARS I DO UNDERSTAND THE
PROBLEM THAT IT CREATES.
REGARDLESS IF FIFTEEN THOUSAND
ARE.
YOU KNOW A HUNDRED THOUSAND I DO
KNOW IT TAKES HOUSES UP THE
MARKETS ARE SCARCE IN HIGH RISK
YEAH I MEAN.
I I THINK YOU KNOW A LOT OF
TIMES YOU KNOW WE'VE HEARD MORE
RECENTLY AS I GO WELL WE'RE NOT
WE'RE NOT BUYING AS MUCH AS WE
WERE WALLS BECAUSE DURING THE
RECESSION WHEN ONE HOME PRICES
WERE EXTREMELY LOW THAT'S WHEN
IT WAS MORE ADVANTAGEOUS TO BUY
MORE HOUSING.
STOCK NOT JUST IN CALIFORNIA --
BUT ALSO IN OTHER STATES AND SO
YOU KNOW GONNA FLUCTUATED SO AND
IN THAT IN THE EVENT THAT
THERE'S ANOTHER FLUCTUATION IN
AS A DIP IN THE HOUSING MARKET
YOU'RE GONNA SEE THEM COME RIGHT
BACK IN HERE AND TRY TO BUY UP
SOME MORE HOMES.
AND THAT'S A REALLY GOOD
OPPORTUNITY FOR FIRST TIME HOME
BUYERS ARE JUST INDIVIDUALS TO
BE ABLE TO GET IN AND AND BY
HOUSE BECAUSE IT'S CHEAPER HOME
PRICES -- IT
AND AGAIN I JUST DON'T THINK
THAT WE'RE ASKING MUCH TO BE
ABLE TO PROVIDE THIS INFORMATION
TO THE STATE OF CALIFORNIA HOT
ESPECIALLY ME THEY THINK THAT
THE ARGUMENT AND OUT A LOT OF
RESPECT FOR JIM --
THE ARGUMENT --
THAT OF ALL IT'S THE AVAILABLE
TODAY SEC WALL.
YEAH IF IT'S AVAILABLE THEN IT'S
A LOOP JUST AS EASILY AVAILABLE
TO PROVIDE THAT INFORMATION TO
THE STATE OF CALIFORNIA --
AND SO IT'S EASIER IT'S EASIER
IT'S MORE --
AVAILABLE FOR US TO BE ABLE TO
MAKE A DETERMINATION WE GET THAT
INFORMATION BACK TO THE
LEGISLATURE SO CAN USE THAT IN
SOME WAY TO MAKE SURE THAT AT NO
POINT TIME ARE WE ABLE OR DO WE
HAVE ANY POLICIES IN THE BOOK OR
LACK OF POLICIES ON THE BOOK.
THAT DO NOT ADVANTAGE
INDIVIDUALS TRYING TO GET INTO A
HOME AND MAKE SURE THAT THERE IS
NO SITUATION I MEAN NIGHT WE
HEAR THAT THERE IS NO SITUATION
I I'VE NEVER I DON'T SEE PROOF
OF THAT --
BUT WE DON'T KNOW THAT THEY'RE
NOT GOING UP AGAINST ANY TO ANY
TYPE OF INSTITUTIONAL INVESTOR
AND THIS ISN'T YOU KNOW WE'RE
NOT TALKING ABOUT.
WE WE ARE NOT TALKING ABOUT YOUR
FLIPPER FLOP.
TYPE INDIVIDUALS IN A BIND A FEW
HOMES HERE AND THERE THE
FLIPPING AND SELLING THEM TO IT
THAT INDIVIDUALS ARE TALKING
ABOUT MAJOR INSTITUTIONAL
INVESTORS I SEE THIS AS A AS AN
INVESTMENT OPPORTUNITY FOR THE
YOU KNOW.
THESE AS AN OPTION HAVE
INVESTMENT ON THE STOCK MARKET I
AND I AND I THINK THAT WE AS A
STATE THAT'S GOING TO HOUSING
CRISIS NEED TO HAVE EVERY
MEASURE ALL THE INFORMATION
POSSIBLE.
ON THE BOOKS IN IN PLACE OUT TO
MAKE SURE THAT WE ARE HURTING
HOME BUYING AND WE ARE WE HAVE
AT LEAST ENOUGH INFORMATION TO
BE ABLE TO PROPERLY RESPOND --
IF THERE IF THERE IS AN ISSUE
THAT ARISES.
RIGHT I ANY QUESTIONS FOR THE
COMING NO [inaudible]
OKAY.
IT'S CALDERON WHICH ELECT CLOSE.
SELECT.
ADDRESS FROM EVER AGAIN.
ALL N. E. AS WHO WE OFFER UP
SOME AMENDS WE HABITAT TO YOU'RE
HAPPY TAKE DEMANDS ARE QUE PAGE
TO PAGE THROUGH THE OKAY A
PRODUCT SO YOU'RE TAKING ALL THE
MEN THAT WERE SUGGESTED OKAY
THANK YOU.
AT THE PROPER TIME WE WILL
DISPENSE WITH THIS ITEM.
ALRIGHT NEXT UP.
WE HAVE ASSEMBLY WOMAN LOW MOAN
AND YOU HAVE TO ITEMS BEFORE US
TODAY --
FIRST --
WELL WE HAVE ONE ON CONSENT AND
DO WE HAVE --
WHEN THE NINE FIFTY THREE UP
FIRST PLEASE?
GREAT THANK YOU MISTER CHAIR AND
MEMBERS.
BUT LIKE SET THE MY ROLE AS
CHAIR OF THE ASSEMBLY BANKING
COMMITTEE I HEARD A COMMON
REFRAIN FROM FELLOW MEMBERS
CONSUMER ADVOCATES REGULATORS
RESPONSIBLE LENDERS AND THE
MEDIA.
SOMETHING NEEDS TO BE DONE ABOUT
SMALL DOLLAR CONSUMER LOANS IN
CALIFORNIA. TOO OFTEN CONSUMERS
FIND THEMSELVES IN LOANS THAT
THEY CANNOT AFFORD TO PAY BACK
INTERFACE WITH THE NEGATIVE
CONSEQUENCES THAT HARM THEIR
FAMILY'S FINANCIAL HEALTH.
THE DAME PRESENTING AB TWENTY
NINE FIFTY THREE TO ADDRESS ONE
OF THE RISKIEST AREA AND SMALL
DOLLAR LOANS SPACE.
AUTO TITLE LOANS REQUIRE A
CONSUMER TO PLEDGE THEIR VEHICLE
AS COLLATERAL ON THE LOAN
MOST VALUABLE ASSETS AND OFTEN
THEIR PRIMARY MODE OF
TRANSPORTATION TO WORK.
SCHOOL AND ACCESS TO HEALTH
CARE.
FURTHERMORE INTEREST RATES ON
TILE LOANS OFTEN EXCEED VOTE
EXIA 100% APR WHICH MAKES IT
DIFFICULT FOR CONSUMERS TO
AFFORD THEIR MONTHLY PAYMENTS.
UNFORTUNATELY TOO MANY CONSUMERS
COULD TAKE OUT THAILAND'S HAVE
THEIR CARS REPOSSESSED WHEN THEY
ARE UNABLE TO MAKE SCHEDULED
LOAN PAYMENTS.
IN THE LAST TWO YEARS OVER FORTY
THOUSAND CARS REPOSSESSED TWO
TWO TITLE LA TITLE LOAN DEFAULTS
ACCORDING TO THE DEPARTMENT OF
BUSINESS OVERSIGHT ANYA REPORTS.
INDICATING THAT NEARLY ONE OUT
OF FIVE TITLE LOAN BARS HAVE
THEIR CAR REPOSSESSED.
pONCE OUR CAR IS REPOSSESSED THE
LENDER CAN SELL THE VEHICLE AT A
PRIVATE AUCTION FOR WELL BELOW
THE MARKET VALUE AND THEN SUE
THE CONSUMER FOR THE UNPAID
BALANCE OF THE LOAN.
SO NOT ONLY CAN CONSUMERS LOSE
THEIR CARS BUT THEY CAN BE SUED
AND FORCED INTO BANKRUPTCY
AFTERWARD.
I AM A STRONG BELIEVER IN THE
VALUE OF CREDIT MARKETS.
I DO NOT WANT TO ELIMINATE
BUSINESS THAT PROVIDES AN
ESSENTIAL SERVICE TO CALIFORNIA
CONSUMERS.
I ALSO BELIEVE THAT HEALTHY
CREDIT MARKETS ARE BUILT ON THE
FEW MONTHS FOUNDATION OF SOUND
UNDERWRITING.
WE CANNOT IGNORE ONE OF THE
PRIMARY LESSONS OF THE MORTGAGE
CRISIS.
LENDING DECISION MUST BE BASED
ON THE CONSUMER'S ABILITY TO
REPAY A LOAN NOT THE VALUE OF
THE ASSET THAT SECURES THE LOAN.
THE BILL PROPOSES A 36% RATE CAP
ON THAILAND'S WHICH WILL PROVIDE
A STRONG INCENTIVE FOR LENDERS
TO DETERMINE A CONSUMER'S
ABILITY TO PREPAY BEFORE
OFFERING THEM ALONE.
DESPITE THE OPPOSITE THAT THE
SPEED DESPITE WHAT THE
OPPOSITION MAY SAY THIS BILL
DOES NOT SHUT DOWN THE INDUSTRY.
RATHER THE BILL FOCUSES ON ONE
SPECIFIC PRODUCT OFFERED IN THE
SMALL DOLLAR LOANS SPACE AND
PROVIDES REASONABLE SAFEGUARDS
FOR CONSUMERS THAT USE THIS
PRODUCT.
THERE IS ALREADY A MAJOR LENDER
IN CALIFORNIA THAT OFFERS THIS
PRODUCT UNDER 36% AND I HOPE
THAT OTHER LENDERS CAN MAKE THE
NECESSARY CHANGES TO THEIR
BUSINESS MODEL TO MAKE THIS
WORK.
THE PROPOSED 36% CAP IS IN
ACCORDANCE WITH TWENTY FIVE
OTHER STATES AND THE DISTRICT OF
COLUMBIA THAT HAVE CAP TITLE
LOAN INTEREST RATES OR BANNED
THE PRODUCT ALTOGETHER.
I HOPE YOU CAN JOIN ME TODAY IN
ADVANCING THIS IMPORTANT
CONSUMER PROTECTION ISSUE.
I WOULD LIKE NOW TO TURN ON THE
TIME OVER TO ROSEMARY ASHEN.
AND AS SAYS ARE MISSOURI FIVE
WHO ARE HERE TODAY AS
REPRESENTATIVES OF AS
REPRESENTATIVES OF THE TENS OF
THOUSANDS OF CALIFORNIANS WHO
HAVE LOST THEIR CARS DO THESE
RISKY LOANS.
NO PARTICULAR ORDER.
HI GOOD AFTERNOON MY NAME TO SEE
THEM AS OUR AND I'M A RESIDENT
OF JELLO THIS TIME --
I HAVE MY OWN BUSINESS IS AN
ACCOUNTANT TAX PREPARER.
I HAVE TWO CHILDREN SON AND
DAUGHTER --
BUT IT PRONTO IN.
TWO THOUSAND SEVEN AND THEN MY
WIFE -- AND
I BROKE UP.
I SHE WENT TO THE LEAST TO THE
EAST COAST LEFT THE TWO KIDS
WITH ME.
OUGHT TO RAISE --
TWO THOUSAND SEVEN TWO THOUSAND
AND TWO THOUSAND NINE THAT WAS A
BAD -- AYE
YEARS OF THE ECONOMY --
I STRUGGLE TO KEEP A ROOF WHEN
OUR HAD --
ME AND MY KIDS BOTH WORKED --
THE ENDED UP GRADUATING FROM
HIGH SCHOOL WITH HONORS AND
YEARS THERE THEN THE GRADUATING
FROM UC SANTA CRUZ AND UC SAN
DIEGO.
I THE YEAR TWO THOUSAND MY
BUSINESS REALLY HAT --
ON OFF PATCH I OWNED --
TWO THOUSAND THREE THROUGHOUT
THE CITY AND THAT WAS WORTH
ABOUT TEN THOUSAND DOLLARS MOST
PEOPLE I WAS EMBARRASSED TO
SHARE WITH MY FAMILY FRIENDS AND
SO FORTH.
MY FINANCIAL DIFFICULTIES --
SPECIFIED IN MY KIDS JUST SAID
ALL THAT --
COINCIDENTLY AREN'T ALL THAT
HAPPENS WILL SHOW CONSUMER
CREDIT.
CALLED ME AT THAT TIME.
AND THEY TOLD ME THAT --
ó WOULD LIKE TO HELP THE OTHER
NOW THAN YOU ABOUT MY PROBLEM
BUT THEY DID CALL ME --
DEATH IF I WANT ANYTHING THAT'S
WHY THEN DOES IT YOU REALIZE
THAT I HAVE A FEE TITLE TO MY
VEHICLE THIS IS WE CAN HELP YOU
THERE -- WE
TOOK -- FOLK
OF REALIZATION EMAILS AND FAXES
--
UNTIL --
WHEN THEY OPEN A FIVE THOUSAND
DOLLAR LOAN --
WHICH THE TRANSACTION I'VE EVER
MET ANYBODY TELL HIM BOTH ME AND
A REPRESENTATIVE OF WELSH ARE WE
MET AT A GAS STATION.
WHEN HE CAME DOWN WITH A CHECK?
FOR FIVE THOUSAND DOLLARS AND I
HAD THE TITLE OF THE VEHICLE I
HANDED OVER TO THEM HE GAVE ME
THAT CHAT --
WE SIGNED SOME PAPERS AND SO
FORTH --
EVEN THOUGH I'M AN ACCOUNTANT --
THE DOCUMENTS WERE VERY
CONFUSING --
WHAT'S WHAT'S WHAT MADE IT WORSE
OF THE AGREEMENT CONTAINED AN
ACCURATE DECEPTIVE INFORMATION.
REGARDING THE INTEREST RATE
FINANCE CHARGES AND TOTAL
PAYMENTS THOUGH IT ALSO HAD AND
FINANCE CHARGES --
PLUS THAT AIM TO GIVE ME THE
FULL AMOUNT OF THE LOAN THEY
GAE ME OF THE TO COLLECT ON THE
DOLLARS TO THE POCKET SOMEHOW --
I REALIZE THAT IS THAT THE
INTERSTATE WAS --
71% -- WHICH
IS ABSURD THAT HIGH --
ESPECIALLY THAT THE LOAN IS
ACTUALLY
SECURE BECAUSE OF CAUGHT IS
WORTH TEN THOUSAND DOLLARS AND
THEIR THEIR INTEREST IN THIS IS
50% -- SO
THAT NOTICE.
AND ESSENTIALLY IN AND THIS LONG
THAT'S SELECT --
I'M A CREDIT.
I KNOW IS --
THEY ALSO THAT THEIR OWN STUFF
CHARGING ME ADDITIONAL AMOUNT OF
THE LOAN --
THE PAYMENTS OF LIKE THE END OF
FORTY DOLLARS A MONTH --
WHICH IS --
SOMEBODY WAS HAVING PROBLEMS
REALLY MADE IT EVEN WORSE --
ONCE IT'S LIKE --
I AM YOU HUNGRY FOR A WEEK
SOMEBODY GIVES A HAMBURGER.
FEES YOU FOR THE DAY AND THEN
THAT THAT BAG OF THAT BUT YOU
KNOW THAT THE FED IS GONE
ANOTHER DEALT WITH.
THE CONSEQUENCES OF THE LONG --
THAT THE SOURCE WAS BUT BILLION
BELIEVE -- I
FILLED BEHIND SOME SOME PAYMENTS
--
WHEN SFO BROWN LIKE TEN DAYS --
BEHIND --
STRUGGLE TO KEEP MY BUSINESS
GOING --
PUBLIC TRANSPORTATION IS HOT IN
SAN DIEGO --
THE VAN WAS BEING USED BY ME TO
GO SEE MY CLIENTS AND ALSO MY
DAUGHTER TO GO.
TO PAY UNIVERSITIES.
AND DIED --
WHICH SHOULD THE SEVEN BADLY
CALLED.
I CUT DOWN ON FOOD AND
EVERYTHING DOCUMENT AND THAT
COULD NOT.
A TWO OF THE TWO THOUSAND TEND.
TO DOESN'T OR SITTING IN MY
PLACE MY CONDO MY APARTMENT UP
THERE I WAS HITTING THE ALARMA
MY VEHICLE SIMILAR TO IT --
THAT MORNING ALREADY TALKED TO
WILSHIRE CONSUMER CREDIT AND
THEY TOLD ME I TALK ABOUT BEING
THE BOUNCE UP TO DATE BY THE END
OF THE WEEK I OUT OF CARE THIS
IS YEAH THAT'S FINE.
TUNING OF THE ALARM SO IT DIDN'T
IT DIDN'T PHASE ME AT THE
BEGINNING OF THIS MISS THAT
BECAUSE THEY WERE DOWN AGREEMENT
VERBAL AGREEMENT WITH THEM.
BUT IT KEPT GOING ON AND GOING
ON GOING ON THEN I WENT --
WENT DOWNSTAIRS TO CHECK OUT CO.
LEYVA TOW TRUCK YOU KNOW THOSE
--
THREE FIFTY MADE.
TOW TRUCK YOU KNOW THEY HAVE OF
THE EQUIPMENT AT THE BACK TO IT.
HAD THE BAN LIFTED THE VAN WAS
--
WHAT'S SO.
YOU KNOW ALONG GOING ON I I
MIGHT MY HEART FILLED ON THE
GROUND AND LOOK LOOKING AT THEM
ALL ON THE MEANS.
OF US. TO TO DO MY BUSINESS
CENTRAL WITH OUGHT TO GO TO
SCHOOL AND HAVE TAKEN IT AWAY I
TOLD IN THIS THEY HAD AN
AGREEMENT WHAT'S GOING ON
BECAUSE I HAVE A NOTE THAT HERE
TO PICK UP MICHAEL WILL SHOW
RIGHT AWAY TALK TO THE GUY I
TALKED TO THIS.
MORNING IT WAS GONE WILL YOU
DON'T HAVE TO FRIDAY.
THERE GOES WELL HIS BOSS CAME
AND HE SAYS I WAS BEING TOO SOFT
AND THE WHAT THE JUST A LESSON.
HOW?
TO DEEP COMMITMENT PEOPLE PAY ON
THAT WANTS.
US IS WHAT WE HAD AN AGREEMENT
YOU CAN DO THIS THIS IS BECAUSE
ALL WE NEED A PAYMENT NOW --
MY DAUGHTER CAM.
DOWN FROM UPSTAIRS AND SHE SAW
THIS SHE STOPPED CRYING AND*
LIVE CRAZY ARE TOLD TO CALL HER
MOM MAYBE SHE CAN MAKE THE
PAYMENT OF MOM CALLED --
SHE CHEWED ME OUT FOR A LITTLE
BIT THAT SHE CALLED DOWN.
WHAT SHOULD I WAS SURE CRIED AT
AND SHE AGREED TO TO MAKE THE
PAYMENT TO THEM?
ACTUALLY MADE THE PAYMENT --
THAT TO INTO THAT WENT TO THE
GUY THAT'S DOING THE TONGS HIS
--
STOP IT THERE THAT YOU KNOW WE
MADE THE PAYMENT LIKE YOU ASKED.
FOR HE CALLED WILSHIRE GUIDE THE
TOLD THEM NO CONTINUALLY PUTS US
IN THE VEHICLE.
AND AS THE VEHICLE OFF.
AS A VERY.
SO THIS CAN HAPPEN --
AS A VEHICLE WAS PULLED OUT MY
DAUGHTER.
AND ASSURING A NERVOUS BREAKDOWN
[inaudible]
FIXTURES ARE [inaudible]
THANK YOU.
BUT AS IT WENT ALONG WITH THEIR
CAT BOOKS BOB WILL ROUTE THINGS
FROM THE VAN.
SHE ENDED UP HAVING TO GO NEXT
SEMESTER --
PASS NO PASS TOOK AWHILE TO GET
OUR CHILDREN FROM THIS --
I KNOW IS OUT WE MET THE NEXT
DAY WE GOT OF MONEY WE MADE TWO
PAYMENTS TO THEM THEY GIVE THE
LOVE THE LOVE DIVINE HOW --
THAT AND THE PAYING THE LOAN OFF
COMPLETELY ENOUGH THAT WHILE --
THEN THE ONE THE THE ONE WITH IS
MY MY TITLE BECAUSE ONLY TO PAY
NINE HUNDRED SIXTEEN DOLLARS OR
SO.
ADDITIONAL CHARGES FOR THE
TOWING.
HE'S ON THE LOAN.
SHOULDN'T BE SECURED BY THE
TITLE THAT WAS ADDITIONAL NOT
ONLY THE FIVE THOUSAND WAS
SICKENED BY THE THOUGHT F IT
AND LISTEN.
IDEA ON HOW DO THE FOR TWO
MONTHS TO LISTEN SO I WENT TO
THE LEGAL AID SOCIETY AND BUT
THIS IS NOT A GREAT ATTORNEY.
BEAUTIFUL LADY SHE TOOK THE CASE
--
SHE REVIEWED EVERYTHING ON
CHIFFON OUT ALL THE DEATH CAMPS
DIP DRUNK CHARGES EVERYTHING SHE
THAT THAT'S ALL --
THEY ENDED UP SETTLING WITH NEWS
YOU KNOW WATCHING THEM GO TO
GETTING THE US TOP --
I WAS LUCKY I GOT IN I GOT PUT
USED IN LEGAL AID SOCIETIES
DON'T HAVE.
SO WHAT ATTORNEYS TO HANDLE THIS
IS DOWN THE THE VIXEN'S THE
HANDLE ARE.
A LOT OF STUFF YOU KNOW THAT AND
DO THAT SO JUST ONE THING ABOUT
THE OTHER PEOPLE AND THEN.
IN OUR SOCIETY THAT THE CAN'T
EVEN AFFORD THAT KIND OF STUFF
ON WHAT WHAT THOSE.
COMPANIES DOING TO THEM AND FOR
PEOPLE THAT IT IS TRUE THAT THE
MOB.
MIGHT TELL YOU THAT THE PROVIDE
HEALTH BUT IF YOU'RE IF YOU'RE
CHARGING.
WHICH I KNOW A COMPANY INCENTIVE
WHICH WAS ON THE 44%.
AND THE TELL THE CONSUMER WOULD
TRY TO A CHILD AND 12% A MONTH
AGO THAT THEIR TIME THEY P. OSLO
UNDER 44% TO DICK TWENTY SIX
HUNDRED DOLLAR LOAN.
YOU HAVE TO BUT IF YOU HAVE TO
BID SIXTEEN THOUSAND DOLLARS
BACK TO THEM.
IN THE FIRST FOUR EIGHT PAYMENTS
YOU PAID BACK WITH THE GAVE YOU.
AND HE SPENT FORTY MONTHS SPAN
BACK THEIR INTERESTS AND THE ON
THIS AND BECAUSE IT THAT.
BASED ON IT WHEN A CAR VALUE --
AFTER THE FIRST TWO YEARS THEY
ARE QUICK WITH THE HOPE WITH THE
VAN BECAUSE THE VALUE OF THE
COSTS ARE GOING DOWN OF THE
YEARS.
AND THEY GET CLOSE TO THE BODY
OF THE LAW AND I DON'T THINK THE
CAR FROM YOU AND SALAS THAT'S SO
OFTEN THAT THAT WOULD BOTHER YOU
FAIL -- AND
THEN SELL THE COD THAT'S MORE
GUARANTEED TO THEM HAS TO GO
THROUGH [inaudible]
THANK YOU THE CRITTERS Y. NEXT
WITNESS MISTER CHAIR MEMBERS I'M
ROSEMARY SHAME HIM PRESIDENT
CONSUMERS FOR AUTO RELIABILITY
AND SAFETY AND WE'RE VERY
GRATEFUL TO ASSEMBLY MEMBER
LONG.
FOR HER LEADERSHIP IN AUTHORING
THIS BILL. FOR YEARS I HAVE BEEN
HEARING FROM VICTIMS OF CAR
TITLE ENDING AND I HAVE TO TELL
YOU -- THERE
SOME OF THE MOST HEART RENDING
STORIES I'VE HEARD AND WHAT
HAPPENS VERY OFTEN IS CONSUMERS
HAVE OTHER OPTIONS THEY DON'T
EVEN NEED TWENTY FIVE HUNDRED
DOLLARS OR MORE.
THE SOMETIMES NEED FAR LESS THAN
THAT THEY JUST DON'T UNDERSTAND
THE THIS IS LIKE THE MOST RISKY
FORM OF LENDING BECAUSE IF THEY
LOSE THEIR CAR IN THESE HAVE A
VERY HIGH RISK OF LOSING THEIR
CAR.
IN CALIFORNIA FOR MOST PEOPLE A
CARDS A NECESSITY OF LIFE AND
WHEN YOU MOVE YOUR CAR YOUR LIFE
FALLS APART.
AND I'VE HEARD FROM CONSUMERS
WHO NEEDED JUST A FEW HUNDRED
DOLLARS TO FIX A LEAKY ROOF AND
ENDED UP.
THEY WANT TO AN UNSECURED LENDER
AND WERE REFERRED TO A CAR TITLE
LENDERS WINNING THE UNSECURED
LENDER HAD A RELATIONSHIP WITH A
CAR TITLED UNDER FOUND OUT THAT
THEY OWNED A CAR.
AND THEN THEY WERE TALKS INTO
GETTING A LOAN AND NOT
UNDERSTANDING THAT IT'S UNLIKE
ANY OTHER LONELY EVER ENTERED
INTO.
AND THAT THERE'S NO UNDERWRITING
THERE'S NO THEY DON'T ASK FOR
YOUR CREDIT IS A DON'T ASK OR
YOUR INCOME IS ALL THEY WANT TO
KNOW IS DO YOU HAVE TITLE TO
THAT CAR AND HOW MUCH IS IT
WORTH [inaudible]
AND MOST STATES HAVE DECIDED TO
EITHER OUTLAW THIS OR THESE CAP
THE INTEREST RATES SO THAT
THERE'S IT IS SO IT'S NOT A SET
UP WHERE IT'S LIKE YOU'RE.
THERE'S SUCH A HIGH RISK THE
ORGAN LUGER CAR --
AND SO WE REALLY.
I WOULD HOPE THAT CALIFORNIA
WOULD JOIN THE REST OF THOSE
STATES AND AND PLEASE VOTE I FOR
THIS BILL. TO SHOW WITNESSES IN
SUPPORT.
THANK YOU MISS.
THANK YOU MISTER CHAIRMAN BURST
JESSICA BARTOLO WITH THE WESTERN
CENTER ON LAW AND POVERTY AND
SUPPORT.
THANK YOU NEXT WITNESS.
THANK YOU CHAIRED.
TED MERMAN ON BEHALF PUBLIC
COUNSEL THE PUBLIC LAW CENTER
AND EAST BAY COMMUNITY LAW
CENTER FOR THE REASONS WE JUST
HEARD.
ASK YOUR IVAN THANK YOU.
EMILY RESTS WITH CALPERS AGAINST
PART [inaudible]
THANK YOU.
CHRIS FOR SIGNS WHICH ARE THEN
STRONG SUPPORT.
THANK YOU ANY ADDITIONAL
WITNESSES IN SUPPORT.
SHOOTING HEARING ON WITNESSES IN
OPPOSITION
[inaudible]
YOU KNOW.
MISTER CHAIRMAN MEMBERS I'M
SORRY.
IT WHEN YOU READY I'M SORRY.
MISTER CHAIRMAN MEMBERS JOE
LANGUAGES AND COMEDIAN LOANS OF
AMERICA.
I'M I'M TRYING TO DECIDE WHERE
TO BEGIN HERE SO.
THE BILL THAT'S BEFORE YOU
IMPRINT --
INSTITUTING AN INTEREST RATE CAP
[inaudible]
WOULD FUNDAMENTALLY RESULT IN
ONE MAJOR RESULT.
IN EVERY OTHER STATE.
AND THERE ARE VERY FEW THAT HAVE
ATTEMPTED TO DO THIS THE AUTO
TALL -- AUTO
TITLE LOAN INDUSTRY IS FORCED TO
CLOSE UP AND DISAPPEAR.
THERE'S A LOT OF REASONS FOR
THAT AND I CAN GET INTO DETAIL
ABOUT BUT THAT WOULD BE THE
IMPACT OF THE ENACTMENT OF THIS
BILL.
IT'S NOT TO SAY THAT --
MY CLIENT OR THE ENTIRE INDUSTRY
IS NOT AWARE OF CONCERNS --
CLEAR THE CONCERNS ABOUT.
THE HIGH REPOSSESSION RIGHT --
THE GOOD NEWS IS THE THE LATEST
REPORT COMING OUT SHOWS IN FACT
THAT AUTO TITLE LOANS
[inaudible]
INCREASED HERE YEAR OVER YEAR
AND TWENTY SEVENTEEN AND THAT
REPOSSESS IN STE DECREASED
DURING THAT SAME PERIOD OF TIME
FROM ABOUT 20% THE YEAR BEFORE
TO ABOUT 17%.
BUT WE ARE CONCERNED ABOUT THAT.
AND ONE OF THE REASONS THAT
WE'RE CONCERNED ABOUT THAT IS
THAT IN IN THIS BUSINESS IN THIS
FINANCIAL SERVICES BUSINESS.
IF WE HAVE TO REPOSSESS THE CAR
WE'VE ALREADY LOST.
WE LOST OUR CAPITAL.
AND AND WE'VE LIKELY LOST LE
MOST OF THE INTERESTS AND AND
IT'S JUST A LOSER FROM THE
BEGINNING.
SO WE DO EVERYTHING WE CAN TO
MAKE SURE THAT WE DON'T HAVE TO
DO [inaudible]
BUT SHOULD THE LAW WILL BE
CHANGED TO ADDRESS THAT ISSUE
AND PROVIDE PROTECTIONS FOR
REPOSSESSIONS. TO STOP SOME
PRACTICES THAT ARE UNFAIR TO
CONSUMERS ABSOLUTELY.
THE LAST THING WE WANT TO DO IS
TAKE A CAR FROM SOMEONE.
WHO NEEDS A CAR TO PERFORM THEIR
JOB TO PERFORM THE WORK THAT IS
THE COLLATERAL FOR US TO GET
REPAID?
AND SO THERE ARE THINGS THAT
COULD BE DONE TO STRENGTHEN
THAT.
THERE ARE THINGS THAT COULD BE
DONE TO STRENGTHEN CONSUMER
THAT WE AND WE AS AN INDUSTRY
HAVE HAVE WORKED HARD. TO TRY
AND COME UP WITH A COMPREHENSIVE
PACKAGE TO DO THAT.
UNFORTUNATELY WE HAVEN'T HAD THE
FORUM IN WHICH TO DO THAT.
AND IT'S LACKING THAT FORM.
SO WE WE DON'T HAVE THAT FORM TO
COME UP WITH WHAT WOULD BE.
I'M SORRY MISS OR SKINNER VITA
GLEAVES AND TRY TO STEPS A
QUORUM PLEASE YES.
MADAM SECRETARY PLEASE CALL THE
ROLL.
SENATOR BRADFORD PRESENT.
HERE BITE ACT.
PRODUCT HERE GAINES GALGIANI.
GALGIANI HERE WESO LAURA
STILLMAN [inaudible]
FOR PORTANTINO.
PORTANTINO HERE PUBLISHED
ALL'INTERNO [inaudible]
THE FOR OKAY.
VIENEN AFTER THURMOND AND ALL OF
MAKE IT SHORT I'M SURE WAS
SOMEHOW BEING ELOQUENT --
THE KEY POINT HERE IS THAT IT
WITH THE BILL AB AND THE
INDUSTRY WOULD HAVE NO CHOICE
BUT TO GO AWAY AND WHAT THAT
MEANS IS THAT. FOR MANY MANY
CONSUMERS WHO HAVE LOW CREDIT
SCORES WHO ARE UNBANKED.
WHO DON'T HAVE ANY OTHER OPTION
YOU WILL BE REMOVING THE LAST
CREDIT OPTION FROM THEM?
I'M NOT SURE THAT'S THE INTENT
OF THIS COMMITTEE BUT THAT WOULD
BE THE FACT WITH THAT INTEREST
RATE CAPS.
SHORT OF AN INTEREST RATE CAPS
WERE HERE TO ROLL UP OUR SLEEVES
AND FIND A WAY TO COME UP. TO
RESOLVE THE QUESTIONS I KNOW
MISTER CHAIRMAN YOU HAVE AND
OTHERS WITH REPOSSESSION RATES
WITH.
CONSUMER INFORMATION AND
DISCLOSURE AN UNDERWRITING AND
WE'RE HERE TO DO THAT.
BUT WITHOUT THE FORM TO DO THAT
WERE LEFT WITHOUT A TO OPPOSE
THE BILL THAT INCLUDES AN
INTEREST RATE CAP THAT WE JUST
ESSENTIALLY ELIMINATE THE
POSSIBILITY OF THE BUSINESS
EXISTING IN CALIFORNIA.
CHAIRMAN MEMBERS POLLED LEAD
BUILDING ON BEHALF OF CHECKING
THE CASH AND ACCESS FINANCIAL --
BOTH CLIENTS WHICH PROVIDE OH
ALLIED VARIETY OF FINANCIAL
PRODUCTS ONE OF WHICH IS --
TITLE ENDING UP BEFORE A
SPEAKER'S Y. WERE OPPOSE ON TO
THE BILL SPECIFICALLY.
NO FOR FOR MOST AMERICANS FOR
INDIANS.
I HOPE WE HAVE A PROBLEM --
EVEN THOUGH THE ECONOMY'S GOTTEN
STRONGER OF WAGES HAVEN'T REALLY
INCREASE --
TO MEET THE FINANCIAL NEEDS OF
MOST PEOPLE --
PEW CHARITABLE TRUSTS --
DID A STUDY SAID OVER 50%.
OF ITS RESPONDENTS USED
OVERDRAFT PROTECTION AS A WAY IN
WHICH TO ADDRESS SIR FINANCIAL
NEEDS --
ALTHOUGH OVERDRAFT PROTECTION
DOES NOT MEET THE NEEDS OF
CONSUMERS EVEN ACCORDING TO THEM
--
SO WHERE TO CONSUMERS TURN.
HA THEY TURN TO ASSETS THAT THEY
HAVE THAT ARE AVAILABLE --
THEY TURNED TO WALK HOME.
OTHER.
CREDIT OPTIONS THAT THEY HAVE
AND GENERALLY SPEAKING THEIR
BIGGEST ASSET OTHER THAN THE
HOUSE OF THEIR OWN HOUSE MANY DO
NOT.
IS OUR AUTOMOBILE.
SO THIS IS AN ASSET BY WHICH
THEY CAN GET A LOAN.
OF THE LOANS THAT WE PROVIDE TO
OUR CLIENTS.
ARE ALL UNDER WRITTEN.
WE DO NOT PROVIDE LOANS BASED ON
AUTO AS THE COLLATERAL.
WE UNDERWRITE THE LOANS AND I
WANT TO BE CLEAR ABOUT THAT.
WELL AS MISTER LANG --
AND INDICATED --
AT A 36% APR IT IS NOT POSSIBLE.
FOR MY CLIENTS OR MOST OF THE
INDUSTRY IN THIS SPACE. TO
PROVIDE LOANS.
WHY BECAUSE WE PROVIDE LOANS TO
PEOPLE THAT HAVE FINGERPRINT
FILES?
I THINK CREDIT FILE OR PEOPLE
WHO --
CONSUMERS THAT ARE CASH
OPERATORS TO A LARGE EXTENT THEY
MAY HAVE SOME CREDIT BUT THEY
DEAL IN CASH SO THEREFORE WHEN
THEY NEED TO GET LOAN IT'S
DIFFICULT.
BECAUSE THEY DON'T HAVE A CREDIT
HISTORY FOR TRADITIONAL BANG
SALON THE MONEY --
THERE ALSO ARE THOSE INDIVIDUALS
THAT.
HAVE CREDIT SCORES THAT ARE IN
THE FIVE HUNDREDS.
HOW COME THERE ARE SOME
STATISTICS THROWN AROUND HERE
I'D ACTUALLY LIKE TO POINT TO
THE -- THE
ANALYSIS THAT WAS DONE WAS A
VERY THOROUGH ANALYSIS OF FROM
YOUR STAFF.
HOME WHEN LOOKING AT
REPOSSESSION RATES --
WE NEED TO LOOK AT NOT JUST
STARTING THE REPOSSESSION RATE
BUT WHETHER OR NOT THE
COLLATERAL WAS ACTUALLY
REPOSSESS WE HEARD THE NUMBERS
20% -- AND
WHEN YOU LOOK AT THE ANALYSIS ON
PAGE THREE SAYS DURING A TWENTY
SIXTEEN PROBABLY 12% WHILE
EXTENDING COURT TITLE LOANS
RESULT IN COLLATERAL SALES.
SO THAT'S REALLY THE NUMBER NOW
CAN WE DO BETTER ABSOLUTELY AND
I AGREE WITH --
MISTER LANG THAT TERM.
WE CAN DO SOME THINGS IN THE WAY
OF BETTER DISCLOSURES --
ALSO AHEAD ADDITIONAL NOTICES SO
PEOPLE HAVE AN OPPORTUNITY TO
CURE ALL OF OUR LOANS --
IN ADDITION --
I HAVE NO PREPAYMENT PENALTIES
PEOPLE WANT TO PAY OFF THEIR
LOANS EARLY THEY CAME AND AND SO
ON THESE ARE THINGS THAT WE WANT
TO TALK ABOUT UNFORTUNATELY --
THAT'S NOT WHAT'S BEFORE US
TODAY WAS BEFORE US TODAY IS A
36% APR ON ASSEMBLY MEMBER LIMON
SAID THAT --
IS NOT GOING TO CLOSE DOWN THE
INDUSTRY AND YES THERE ARE
DIFFERENT PRODUCTS WITHIN THE
INDUSTRY.
BUT I CAN'T SPEAK TO OTHER
STATES.
THAT HAVE HAD A 36% APR IMPOSED
SOUTH DAKOTA BEING THE THE MOST
RECENT.
ONE TWENTY SIXTEEN HAS SAID --
OF A YOU KNOW ONLY A FEW DOZEN
OF THE FOR HER AND FORTY ONE
STORES --
THAT EXISTED IN SOUTH DAKOTA --
THAT -- ARE
PROVIDING LOANS AND THE ONES
THAT DID EXIST EXISTS ONLY TO
COLLECT ON OLD DEBTS NO ORGAN --
ON THE WEST COAST HERE I ALSO
DID A SIMILAR 36% APR --
THERE ARE A NUMBER OF STUDIES
THAT WERE DONE AFTER THE ORGAN
LAW PASS A DARTMOUTH COLLEGE
SHOWS HAS NOTHING TO DO WITH THE
INDUSTRY --
A GENTLEMAN NAMED JONATHAN ZEN
MEN WHO DID THE STUDY SHOULD
CAUSE DETERIORATION OVERALL
FINANCIAL CONDITION IN A ORGAN
HOUSEHOLDS.
INTERESTINGLY ENOUGH --
THEIR CYBER COMPLAINTS ALSO A
ROSE THROUGH THE ROOF BECAUSE
ALTHOUGH YOU MAY CLOSE DOWN.
THE A NUMBER OF LOANS THAT
PEOPLE ARE GOING TO GET IT
DOESN'T MEAN THAT HE SHUT OFF
THE NEED THERE'S STILL A NEED
FOR INDIVIDUALS TO GET LOANS AND
ORDER THEY TURN.
AND IT'S JUST THE COST IN FORCE
IN THE COST OF THESE LOANS ARE
HIGH.
AND THAT'S WHAT WE'RE HAVING TO
GRAPPLE WITH HOLLOW.
WE WOULD LIKE TO PROVIDE LOANS
AT A LOWER COST BUT GIVEN THE
FACT IT COSTS MONEY FOR US.
HANA AND DEFAULTS AND AND A COST
OF OVERHEAD --
THE STORES THAT WE PROVIDE --
ILL HAVE OVERHEAD EXPENSE WE PAY
A GOOD WAGES WE PAY OF HEALTH
BENEFITS ON ALL OF THOSE THINGS
GOING TO THE FACTOR.
OF SECURITY UNDERWRITING ALL OF
THOSE THINGS ARE FACTORS THAT
ARE COSTS IN ORDER TO PROVIDE
THAT PRODUCT.
HOME AND SO FOR THOSE REASONS --
WE BELIEVE THAT THE BILL IS
DETRIMENTAL. TO A GOOD
PERCENTAGE OF INDIVIDUALS HAVE
NO PLACE TO TURN.
AND SO THAT'S WHY WERE OPPOSED
TO THE BILL.
AS WRITTEN THANK YOU.
YOU ARE ANY ADDITIONAL WITNESSES
IN OPPOSITION IF YOU CAN
FORMALIZED IT'S GOING TO BE A
LONG AND NON TO STATE YOUR NAME
AND THE COMPANY.
MELANIE GRAY VEST WITH THE KING
TONIC CRUISE COMPANY ON BEHALF
OF THE ONLINE LENDERS
ASSOCIATION THIS PROPOSAL
UNFORTUNATELY IS NOT
ECONOMICALLY VIABLE FOR OUR
MEMBERS AND WE ALSO ARE IN
OPPOSE POSITION THANK YOU.
BUT IF NEW MISTER CHAIR JUST AS
ALL ON BEHALF OF LOAN MART IN
OPPOSITION TAKE.
KERRY CARBONE ON THE CHIEF LEGAL
OFFICER FOR THE TEAM NEXT
FINANCE FAMILY OF COMPANIES WE
DO BUSINESS HERE AS TIMEX
CALIFORNIA WE ARE IN OPPOSITION
AS WRITTEN THANK YOU.
TOM CITED EXECUTIVE DIRECTOR
CALIFORNIA FINANCIAL SERVICE
PROVIDERS IN OPPOSITION.
IT GET TO WITNESSES IN
OPPOSITION SEEN NONE BRING IT TO
THE COMMITTEE ANY QUESTIONS BY
COMMITTEE COMMITTEE MEMBERS.
SCENE.
NINE AUTUMN WHO LET ME SHOW
STATE THAT --
I AM VERY SYMPATHETIC TO A WHAT
WE ARE TODAY AS IT RELATES --
TO TITLE LOANS I UNDERSTAND
THAT.
AS STATED BY BOTH --
SUPPORTERS AND OPPOSITION THAT
--
THERE NEEDS TO BE A FIX YEAR
ENDS IN SOME WAY --
AND I THINK WE COULD.
BETTER REGULATE THIS INDUSTRY I
AM GREATLY CONCERNED WITH THE
NUMBER OF REPOSSESSIONS IN THIS
FIELD BUT AT THE SAME TIME THE
GREAT NEED FOR THIS PRODUCT --
IT'S CLEARLY BEEN DEMONSTRATED
BY THE FACT THAT FOLKS TAKE
THESE LOANS OUT.
I I'M JUST --
NOT CLEAR IF.
AGAIN WHAT WE HAVE TO DATE
REALLY ADDRESSES WHAT THE
PROBLEM IS I'M RESPECTFUL TO THE
AUTHOR AND ALL HER HARD WORK
WHICH IS DONE SO FAR ON THIS
SHOW.
I JUST WANT TO GO ON RECORD AND
SAY THAT I I STILL THINK IT'S A
LOT OF WORK THAT NEEDS TO BE
DONE HERE I CAN THINK WE GOT TO
THE SWEET SPOT SO TO SPEAK MORE
AT THAT WOULD CUT OF THEM BRING
IN BOTH SIDES TOGETHER.
AND I KNOW WASN'T COMMITMENTS
THAT WERE MADE BEFORE.
ALL THIS BILL GOT TO THE SENATE.
THAT THE OPPOSITION FEEL --
HAS BEEN ADDRESSED AND I'M JUST
TRYING TO FIND OUT FROM
ASSEMBLYMAN ASSUMING WOMAN LIMON
OR YOU AND ADDRESSING THOSE
CONCERNS THAT WERE EXPRESSED BY
OUR OR COMMITTED TO I SHOULD
TODAY WHEN YOUR IN THE ASSEMBLY.
RIGHT SO ESTATE A. B. NO ONE TO
BE VERY CLEAR I THINK THAT
THERE'S AND THERE WERE NO
AMENDMENTS THAT WERE AGREED TO
THERE WHAT WAS AGREED TO AS
ONGOING CONVERSATIONS.
ON ABOUT SIR IN IDEAS AND SO
THEY AND THOSE HAVEN'T GONE AWAY
BUT I THINK WHAT YOU ALSO HEARD
I'M HERE MISTER LANG SAY WAS
THAT -- IT
IS YOU KNOW THEY'RE WILLING TO
LOOK AT THINGS BUT NOT AN
INTEREST CAP AND THAT'S WHERE
THE CONVERSATION HAS STOPPED.
ON IT AND THAT IS YOU KNOW
QUOTING HIM AND I THINK THAT
THAT'S IMPORTANT TO RECOGNIZE
THAT THAT'S ON WHERE THE PROBLEM
IS.
AND WHY THE INTERESTS OF WIRE WE
LOOKING AT IT BECAUSE IT'S THE
ROOT CAUSE IF THERE ARE HIGH
INTEREST RATES THEIR HIGH
MONTHLY PAYMENTS IF THERE ARE
HIGH MY MONTHLY PAYMENTS THEIR
HIGH DEFAULT RATES.
SO WE ARE REALLY TRYING TO GET
AT THE ROOT CAUSE OF THIS --
I A UNIT WHAT WAS ALSO MENTION
WAS A NUMBER OF OTHER STATES
SOUTH DAKOTA AND OREGON USES
EXAMPLES THEY PUT A 36% --
RAY CRAP ON A MULTITUDE OF
PRODUCTS THIS IS ONE PRODUCT
THAT IS USED BY LESS THAN 10%
I'M OF FOLKS OUT THERE AND SO WE
REALLY TRY TO BE NARAL.
ON ABOUT CRAFTING THIS WHILE WE
TRY TO MOVE FORWARD I THINK --
IF IF THE CONVERSATION IS NO
RATE CAPS IT IT IT BECOMESVERY
HARD TO HAVE A CONVERSATION
ABOUT ALL THE OTHER IDEAS AND
THAT THE THE AYE SHARED.
AND SO I THINK THAT THAT'S WHERE
I AM WE ARE AT WE FEEL THIS BILL
YOU KNOW HAS HAD BIPARTISAN
SUPPORT AS IT'S MOVED FORWARD --
AND I THINK THAT IT SPEAKS TO
THE FACT THAT THERE IS A PROBLEM
CARS -- ARE
A TRIP PART OF A TRANSPORTATION
SYSTEM THAT ARE IMPORTANT FOR
INDIVIDUALS --
YOU HEARD IN MR MISSOURI'S
COMMENTS --
ABOUT THE FACT THAT EVEN AFTER
HE WAS ABLE HIS CAR WAS
REPOSSESSED HE WAS EVENTUALLY
ABLE TO GET BACK A HAD A LONG
TERM IMPACT IT REALLY IMPACTED
THE FAMILY.
AND SO WE'RE TRYING TO I'M THE
FACT THAT OVER TWENTY THOUSAND
INDIVIDUALS I'M A YEAR GET A
THEIR CARS REPOSSESSED AND
THAT'S A PROBLEM FOR US SO I
THINK I AM.
WE CONTINUE TO MOVE THIS FORWARD
A I DON'T KNOW IF THERE IS A
SWEET SPOT TO GET TOO WHEN YOU
HEAR OPPOSITION ST RATE CAP IS
SOMETHING WE WILL NOT COME TO
THE TABLE --
TO TO HIS HEARING NINE ANYMORE
NOT TEENY MORE QUESTIONS FROM
THE COMMITTEE ON WHICH ELECT
CLOSE.
I I JUST YOU KNOW THIS HAS BEEN
A LONG HELD A LOT OF WORK AND I
THINK THAT TO AND WE ARE TRYING
TO MOVE THIS FORWARD TO ADDRESS.
A AN ISSUE THAT WE THINK IS A
LONG STANDING ISSUE AYE AND WE
BELIEVE THAT IT'S IMPORTANT TO
ENSURE THAT WE TACKLE THE TWENTY
THOUSAND CARS A YEAR THEY GET
REPOSSESSED IN CALIFORNIA.
ON THIS IS DATED THAT'S BEEN
PROVIDED BY THE COMPANIES
THEMSELVES --
WE DO BELIEVE THAT THIS IS A
MODEL THAT AND AGAIN IS FOR ONE
PRODUCT.
UNDER AND 10% OF USERS USE THIS
PRODUCT --
AND IT'S VERY LIMITED IN SCOPE
AND WE THINK THAT THIS IS ON THE
RIGHT DIRECTION TO MOVE FORWARD.
WE ARE ABSOLUTELY UNDERSTANDING
OF THE FACT THAT INDIVIDUALS
HAVE NEED AND LIFE HAPPENS.
I AND AND THAT IS SOMETHING THAT
WE'RE VERY AWARE OF ON EMERGENCY
LOANS ARE SOMETHING THAT TIME IS
NOT NEW TO S. I KNOW AS A
COLLEGE STUDENT YOU THOUGHT
ABOUT THOSE --
AND THAT PEOPLE HAVE TO RESORT
TO EMERGENCY LOANS UP WHAT WE
ALSO FEEL IS REALLY IMPORTANT IS
TO PROVIDE PRODUCTS THAT DON'T
FURTHER THEY NEED AND A STRAW
AND EMERGENCY SITUATIONS FOR
FAMILIES.
WE'VE ALLOWED AND THIS PRODUCTS
BEEN AROUND SINCE THE NINETEEN
EIGHTIES AND THIS IS NOW A TREND
THIS ISN'T A ONE TIME OFF IT'S
NOT A YEAR TO WHERE THIS
HAPPENED ON IT IS.
AN ESTABLISHED TREND AND WE ARE
TRYING TO ADDRESS THAT'S
PERSON'S PARTICULAR ASPECT OF
IT.
AND I KNOW THAT THESE ARE HARD
DECISIONS --
BUT I RESPECTFULLY ASK FOR AND I
AM.
YOU ARE FOR YOUR TESTIMONY AND
YOUR PRESENTATION HA WE HAVE A
TO PASS A RECOMMENDATION AS
AMENDED --
TO APPROPRIATIONS WERE SEEKING A
MOTION.
MISTER CHAIR --
SO.
THEM YOU'RE ASKING FOR
AMENDMENTS [inaudible]
HAVE.
ARE YOU YOU'RE GONNA WE ARE
TAKING THE COMMITTEE AMENDMENTS
THE COMMITTEE MADE SOME
RECOMMENDATIONS FROM AND SO
WE'RE TAKING THOSE [inaudible]
OKAY.
ALL OUR MONEY BILL.
AS AMENDED.
BUT I WOULD.
OBVIOUSLY IF THE BILL GETS OUT A
COMMITTEE ITS GONNA COME TO
APPROPRIATIONS THERE'S BEEN A
LOT OF CONVERSATION ABOUT THIS
BILL -- I
CAN BE TAKING A HARD LOOK AT
OBVIOUSLY THE COST TO THE STATE
AND SOME OF THOSE CONVERSATIONS.
IF IT GETS OUT OF COMMITTEE.
MA'AM SECRETARY PLEASE CULTURAL.
ASSEMBLY BILL TWENTY NINE FIFTY
THREE MOTION IS DO PASS AS
AMENDED TO APPROPRIATIONS
SENATOR BRADFORD [inaudible]
BY.
I BIDAK.
BIDAK NO GAINES GALGIANI.
WESO [inaudible]
LARA [inaudible]
PORTANTINO.
PORTANTINO AYE [inaudible] TO
Q..
THANK YOU ACCEPT YOU HAVE A. B..
THIRTY TEN I THINK YOU I'D LIKE
TO START OFF AND THEY THINKING
THE CHAIR AND HIS STAFF FOR
ENGAGING WITH ME ON THIS BILL
HOW WORKING TOWARDS A RESOLUTION
THAT HAS YOUR SUPPORT.
I DO COMMIT TO ACCEPTING THE
AMENDMENTS TO THE BILL THAT
REMOVES THE ALTERNATIVE LENDING
MODEL BETWEEN THREE HUNDRED AND
TWENTY FIVE HUNDRED KNOWN AS A
FEW LENDING MODEL.
THE BILL NOW RETURNS TO ITS
ORIGINAL FORM OF A ONE LOAN AT A
TIME FOR PAYDAY LOANS AND THE
CREATION OF A DATABASE TO ENSURE
COMPLIANCE WITH THAT POLICY.
SENATORS IN NINETEEN NINETY SIX
S. B. NINETEEN FIFTY NINE BY
SENATOR CHARLES CAO TO CALDERON
WAS ESTABLISH.
ESTABLISH THE PAYDAY LOAN LOAN
PROGRAM.
THE ORIGINAL LEGISLATION
CONTAINED ONE LOAN AT A TIME
LANGUAGE PROHIBITING ANY LENDER
FROM ENTERING INTO A SECOND
PAYDAY LOAN WITH A BAR.
BEFORE THE FIRST DAY BEFORE THE
FIRST PAYDAY LOAN WAS PAID OFF.
THIS LANGUAGE REMAINS CURRENT
LAW.
THE LEGISLATURE SET THE MAXIMUM
PAYDAY LOAN LIMIT AT THREE
HUNDRED IN ORDER TO KEEP THE
SIZE OF THE LOAN AT A LEVEL THAT
COULD BE PAID OFF WITH THE PAY
DAY CYCLE.
OR SOON THERE AFTER.
THE COST OF THE PAYDAY LOAN IS
EXPENSIVE FIFTEEN DOLLARS PER.
ONE HUNDRED HOWEVER WITH THE
SIZE OF THE LOAN FAIRLY SMALL
AND THE DURATION OF THE LOAN
FAIRLY SHORT THE OVERALL COST OF
THE LOAN WAS MANAGEABLE.
OVER THE YEARS HOWEVER BARS HAVE
FOUND A WAY AROUND THE ONE LOAN
AT A TIME POLICY DILLANE
REPAYMENTS BUT AT THE SAME TIME
INCURRING SERIOUS COST.
THIS PRACTICE IS COMMONLY
REFERRED TO AS A LONE SACKING
FOR TAKING OUT MULTIPLE LOANS
FROM MULTIPLE LENDERS AT THE
SAME TIME.
THIS ALLOWS BARS TO FAR EXCEED
THE THREE HUNDRED PAYDAY LOAN
LIMIT OR BRITTANY STYLE THIS BY
THE LEGISLATION IN.
NINETEEN NINETY SIX IN TWENTY
SIXTEEN THE AVERAGE APR OF THE
PAYDAY LOAN WAS THREE HUNDRED
AND 72% AS REPORTED BY THE DB
ó.
WITH MORE BARS TAKING OUT MORE
THAN TEN LOANS PER YEAR.
THEN BARS WHO TOOK OUT JUST.
ONE THE COST OF RULING OVER A
LOAN BECOMES PARTICULARLY
DANGEROUS WHEN A BAR IS TAKING
OUT MULTIPLE PAYDAY LOANS ACROSS
MULTIPLE PAYDAY LENDERS.
THE SPEED AT WHICH THESE FEES
ROB THE BAR OF THE BENEFIT OF
THIS ACCESS TO CAPITAL IS
PROBLEMATIC.
THE DB ó REPORTS OF THE
AVERAGE BECAUSE CUSTOMER TAKES
OUT A SIX POINT FOR PAYDAY LOANS
PER YEAR.
THIS BILL DOES NOT SEEK TO END
PAYDAY LENDING.
PAYDAY LENDING CAN BE A VALUABLE
TO TOOL FOR CALIFORNIANS WHEN
USED PROPERLY WITHIN REASONABLE
LIMITS.
AB THIRTY TEN MAINTAINS ACCESS
TO PAYDAY LOANS BUT AT A LEVEL
THAT IS SUSTAINABLE FOR
CONSUMERS.
I WOULD LIKE TO TURN MY TIME
OVERTIME ON ADLINGTON FROM
CONSUMERS UNION TO TESTIFY IN
SUPPORT OF THE BILL.
AND THE LEISURE IS OF ONLY SEE
LUIS HERE ON THE HOUSE AND
SENATE FOR RESPONSIBLE LENDING
JUST QUICKLY AND THE US FIFTEEN
CONSUMER ADVOCACY ORGANIZATIONS
AT SUBMITTED A LETTER IN
OPPOSITION.
WHAT THE AMENDMENTS WERE
REMOVING ALL OF OUR OPPOSITION?
AND WE THINK THE CHAIR FOR
HEARING FEEDBACK FROM US AS WELL
AS THE AUTHOR ON OUR CONTINUED
COMMITMENT. TO VULNERABLE
CALIFORNIANS ACROSS THE STATE.
HI GOOD AFTERNOON MY NAME IS ANA
LADEN WITH CONSUMERS UNION THE
ADVOCACY DIVISION OF CONSUMER
REPORTS HERE TO SPEAK IN SUPPORT
OF THIRTY TEN WHICH WOULD
CLARIFY EXISTING.
THE BILL WILL ENSURE THAT DB
OAKLAND FORCE THE ONE LOAD AT A
TIME REQUIREMENT ON PAYDAY
LENDERS ESTABLISH A CLEAR
REQUIREMENT THAT LENDERS CHECK
REAL TIME DATA BASE TO MAKE SURE
BORROWER DOESN'T ALREADY HAVE
ALONE BEFORE TAKING OUT A NEW.
ONE THE PAYDAY LENDING INDUSTRY
IS IN DIRE NEED OF COMPREHENSIVE
REFORM.
WITHOUT FAIR PRICING EMITTING
FUND RIGHT ENVIRONMENTS THESE
LOTRIMIN RISKING INFLICT HARM ON
CONSUMERS.
THIS BILL IS A MODEST BUT REALLY
IMPORTANT FIRST STEP TOWARD
SAFEGUARDING CONSUMER
PROTECTIONS A SMALL DOLLAR LOAN
MARKET.
AND AS ALICIA MENTIONED WE HAD
SUBMITTED JOINED THEM IN
EXPRESSING OPPOSITION WITH THE
AMENDMENT BUT PULL BACK FROM
THAT AND NOW I HAVE.
SUPPORT THE BELL AND THINK THE
ASSEMBLY MEMBER FOR THE BILL AND
FOR THE COMMITTEE FOR
CONSIDERING.
THANK YOU MISTER CHAIRMAN BURRS
--
TED MERMAN ON BEHALF OF THE EAST
BAY COMMUNITY LAW CENTER PUBLIC
COUNCIL IN THE LAW FOUNDATION.
OF SILICON VALLEY IN SUPPORT OF
THE BILL.
WE THINK THAT ARE THE PRINCIPAL
ONE LOAN AT A TIME IS WORTHWHILE
INDEED IT'S AN ESSENTIAL
PRINCIPLE FOR PRODUCT DESIGNED
AS AN EMERGENCY.
MEASURE AND WE ASK FOR YOUR AYE
VOTE.
THIS ISN'T SUPPORT.
BECAUSE RESPONSIBLE CHAIR LE AND
STRONG SUPPORT THANK YOU.
WITNESSES IN OPPOSITION.
WILL TAKE TO A TABLE THANK YOU
[inaudible]
S. CLUTCHING.
COMMISSION CHAIRMAN MEMBERS AND
MARGARET GLAD STEAM HERE ON
BEHALF OF ADVANCED AMERICA WE'RE
REGRETFULLY OPPOSED TO THIS BILL
WE DO APPRECIATE --
THE AUTHORS INTERESTED IN THIS
ISSUE AND HAVE SPENT SOME TIME
WITH HER TALKING ABOUT THE NEED
TO PROVIDE SHORT TERM CREDIT
OPTIONS FOR CONSUMERS.
UNFORTUNATELY WE DO NOT THINK
THIS BILL AS IT'S IN.
A PROPOSED TO BE AMENDED OR AS
IT WAS IN PRINT WITH THE
APPROPRIATE VEHICLE TO HELP
CONSUMERS GET WHAT THEY REALLY
NEED TO CALIFORNIA.
SO WE FIND OURSELVES OPPOSE FOR
TWO PRIMARY REASONS FIRST WE
THINK THIS TAKES AWAY VIABLE
CREDIT OPTIONS FOR CALIFORNIA
CONSUMERS AS BRITISH SHE HAND
RIGHTFULLY NOTED IN HER
TESTIMONY ON THE AUTHOR'S
PREVIOUS BILL.
CONSUMERS OFTEN NEED LESS THAN
THEY GET WITH TITLE LOANS WE
KNOW THAT THE NEED IN THE
MARKETPLACE TODAY IS AROUND FIVE
HUNDRED TO FIFTEEN HUNDRED
DOLLARS WE HAVE TRIED TO WORK
WITH -- WITH
AUTHORS OVER THE YEARS TO GET
THROUGH THE THE GAUNTLET EVER OF
POLICY COMMITTEES --
IN BOTH THE ASSEMBLY AND THE SAN
REASONABLE PRODUCT TO DO SO WE
STAND COMMITTED TO SKIP TO TRY
TO WORK WITH THIS AUTHOR TO FIND
SOMETHING. TO MEET WHAT THE
CONSUMERS REALLY NEED BUT IN THE
MEANTIME WE KNOW THAT THEY OFTEN
DO TAKE OUT MORE THAN ONE
HUNDRED TIME BECAUSE THEY HAVE
THESE NEEDS --
THE THIS BILL WILL TAKE THOSE
OPTIONS AWAY WE SIXTY AND THE
ANALYSIS WAS VERY THOROUGH WE
APPRECIATE IT THEY DID POINT OUT
THAT THE AUTHOR HAD.
OFFERED THE ALTERNATIVE LONG
PRODUCT WHICH IS NOW OVER
REMOVED BECAUSE LIMITING
BORROWERS TO ONE LOAN AT A TIME.
REALLY MEANS CONSUMERS HAVE
NOWHERE TO GO WE ACTUALLY
DISAGREE WITH THAT FREE THINK
UNFORTUNATELY WHAT IT MEANS IS
CONSUMERS WILL GO TO UNLICENSED.
UNREGULATED LENDERS WHO OPERATE
OUTSIDE OF THE ARMS REACH OF
CALIFORNIA LAW THE DEPARTMENT OF
BIZARRE BUSINESS OVERSIGHT HAS
AGGRESSIVELY TRIED TO GO AFTER
THESE UNLICENSED WONDERS.
IT TOO OFTEN CANNOT REACH
LENDERS WHO ARE OFF RIGHT
OPERATING FROM THE ISLE OF ME
AND COSTA RICA GUAM OR OUTSIDE
OF THE REACHES OF CALIFORNIA
STATE LAW.
SO FOR THOSE REASONS WE OPPOSE
ON THE CONSUMER ON THE ON THE
LENDING SIDE WE ALSO OPPOSE
BECAUSE WE THINK THIS BILL
JEOPARDIZES CALIFORNIA CONSUMERS
PRIVACY.
THIS BILL WILL CREATE AN UNUSUAL
DATABASE IN CALIFORNIA WE DO NOT
HAVE ANOTHER BIT DATABASE THAT
COLLECTS THE PERSONAL FINANCIAL
INFORMATION ABOUT CALIFORNIA
CUSTOMERS IN THEIR USE OF A LOAN
PRODUCT.
THE DATABASE WILL HAVE SOCIAL
SECURITY NUMBERS AND BY
DEFINITION FINANCIAL
INFORMATION.
IT'S COMPLETELY ANTITHETICAL TO
THINGS THAT THIS BODY JUST
PASSED A FEW WEEKS AGO.
THERE WAS A BILL THAT PASSED THE
SENATE FLOOR THAT STRICTLY
PROHIBITED HOTELS MOTELS PLACES
OF LODGING IN TRANSIT AGENCIES
FROM SHARING PRIVATE INFORMATION
ABOUT GAS AND CONSUMERS.
OF AND THEIR AND THEIR IN THEIR
PASSENGERS --
A. B. THIRTY TEN HAS VIRTUALLY
NO PRIVACY PROTECTIONS FOR
CONSUMERS AND NO LIABILITY
PROTECTIONS FOR LICENSE WONDERS
IF THE DATABASE PROVIDER HAS A
BREACH --
WE'RE FORCED TO SHARE OUR
CUSTOMERS INFORMATION THERE'S NO
SECURITY REQUIREMENTS FOR THE
DATABASE THERE'S NO INDEMNITY
AND IF IF THERE IS A BREACH
ANOTHER BILL THIS BELT THIS BODY
PASSED ON THE SENATE FLOOR WAS
S. B. ELEVEN TWENTY ONE WHICH
CREATES.
POTENTIAL FOR HUGE AMOUNTS OF
LIABILITY IF THERE'S A DATA
BREACH OF THEIR NO RESTRICTIONS
ON THE DATA BASES THAT PRESUMING
THE STATE HAS THE DATA BASE AND
IT'S A VENDOR THERE'S NO
RESTRICTIONS ON THE VENDORS
THEIR USE OF THIS INFORMATION.
SO WE FOR ALL THESE REASONS BOTH
THE WRITTEN THE LACK OF CREDIT
OPTIONS AND THE RISK OF CONSUMER
PRIVACY WE ARE OPPOSED TO THIS
BILL.
NONE CHAIRMAN BRADFORD AND
COMMITTEE MEMBERS THANK YOU FOR
ALLOWING ME TO GO ON ADDRESS THE
COMMITTEE TODAY.
MY NAME IS MELISSA SO PER NINE
HEAD OF PUBLIC AFFAIRS WITH
CAROL FINANCIAL TECHNOLOGIES.
HOW WE OPERATE IN THREE
COUNTRIES HERE IN CALIFORNIA WE
HAVE THIRTY SIX STORE LOCATIONS
AND WE OPERATE ON ONLINE UNDER
SPEEDY CASHIN OF YOUR CREDIT?
LAST YEAR.
WE ORIGINATED SIX HUNDRED
MILLION DOLLARS IN CONSUMER
LOANS IN THE STATE OF CALIFORNIA
BETWEEN POMPEII LOANS AUTO TITLE
LOANS AND ON SECURITY
INSTALLMENT LOANS.
ARE BUSINESS AS HAS BEEN BE
PROVIDING CREDIT TO NON PRIME
CONSUMER SWEEP IT OPERATING FOR
A LITTLE OVER TWENTY YEARS
ACTUALLY OUR FIRST STORE WAS
HERE IN RIVERSIDE CALIFORNIA --
HOW TRY NOT TO REPEAT A NUMBER
OF THE COMMENTS THAT MARKET SAID
--
THE DEMAND YOU KNOW CALIFORNIA
HAS AN UNUSUAL SITUATION.
FROM THE RIGHT PAYDAY TO PAYDAY
LOAN LEGISLATION HAS BEEN AROUND
FOR TWENTY TWO YEARS OF FOR
TWENTY TWO YEARS THE MAXIMUM
RATE TO SPEND TWO HUNDRED FIFTY
FIVE DOLLARS IN PRINCIPLE.
THAT AS THE LOWEST ACROSS THE
COUNTRY.
IN A STATE WHERE THE COSTS ARE
INCREASING.
AND THEN THERE'S THIS BOMB GAP
BETWEEN TWO HUNDRED FIFTY FIVE
AND TWENTY FIVE HUNDRED THAT
WE'RE ALL WELL AWARE OF AND THEN
OPTIONS ABOUT TWENTY FIVE
HUNDRED FOR NON PRIME CONSUMERS.
ON THE THERE'S A THERE'S A HUGE
DEMAND IN CALIFORNIA.
CONSISTENTLY EVERY YEAR THERE'S
OVER ELEVEN MILLION.
DEFERRED DEPOSIT TRANSACTIONS.
HAVE WE HAVE THE DATA FROM ONE
JUST ONE LEAD GENERATOR THAT
SHOWED THAT TWELVE MILLION
CONSUMERS LAST YEAR WENT ON ONE
OF THEIR WEBSITES IN CALIFORNIA
LOOKING FOR SMALL DOLLAR LOANS.
THE AVERAGE AMOUNT WAS NINE
HUNDRED AND SIX DOLLARS.
TOM EARLIER IN THIS SESSION.
ASSEMBLY MEMBER LIMON SAID BARS
FIND A WAY AROUND IT AROUND THE
TWO FIFTY FIVE LIMIT FOR ONE
LENDER.
THAT'S RIGHT --
CONSUMERS WILL FIND A WAY TO GET
THE CREDIT THEY NEED BECAUSE
THAT CREDIT THAT NEED DOESN'T GO
AWAY [inaudible]
COM [inaudible]
SO.
BOB MY BELIEF IS THAT AB THIRTY
TEN DOESN'T SOLVE THE PROBLEM IT
CREATES YET ANOTHER ONE FOR
CONSUMERS HERE IN CALIFORNIA.
IT CREATES THE ISSUE WHERE THEY
CAN NOT GET MORE THAN TWO
HUNDRED FIFTY FIVE DOLLARS FROM
STATE LICENSED LENDERS.
AND THEY WILL GO TO NON STATE
LICENSE LENDERS TO MEET THAT
NEED.
SO.
THIRTY TEN IS.
YOU KNOW HAS GRAVE CONSEQUENCES
FOR CONSUMERS NOT NECESSARILY
FOR LENDERS.
WE SIMPLY WILL DEPLOY THAT
CAPITAL AND OTHER AREAS.
BUT FOR CONSUMERS THEY WILL HAVE
TO GO TO NON STATE LICENSE
LENDERS TO FILL THAT NEED.
I'M ASKING FOR NO VOTE ON A. B.
THIRTY TEN TODAY.
THE SHOW WOULD DISS IN
OPPOSITION.
GOOD AFTERNOON I APPRECIATE THE
OPPORTUNITY TO SPEAK TO THE TO
THE I. COMMITTEE MY NAME IS DAN
GWALTNEY ON THE SEAL A PAYDAY
LOAN LLC.
WERE SMALL LENDER BASED IN
SOUTHERN CALIFORNIA AND WE'VE
BEEN LICENSED UNDER THE DOOR
DOING PAYDAY ADVANCES HERE IN
THE STATE TOP THE LAST TWENTY
ONE YEARS.
WERE ALSO SEE IF A LENDER AND
WERE ALSO A PARTICIPANT IN THE
CFL PILOT PROGRAM AS A FINDER --
ARE CONSUMERS I DIED SIMILAR TO
LAST WEEK.
SPECTER THAT ARE CONSUMERS AYE
I'M HERE TO REALLY REPRESENT.
OUR CUSTOMERS THEY CAN'T COME TO
THE CAPITAL BECAUSE THEY'RE
WORKING.
A LOT OF LIVE PAYCHECK TO
PAYCHECK THEY DON'T HAVE THE
OPPORTUNITY TO GO OUT AND GET --
ATTENTION TO QUALIFY FOR LARGER
LOANS SO THEY DO AT TIMES NEED
MORE THAN.
TWO FIFTY FIVE BOB WHEN WE
STARTED DOING LOANS IN.
NINETEEN NINETY SEVEN TO FIFTY
FIVE BOB COULD POTENTIALLY PARA
PARA CAR.
I THINK WHEN WE DID THE VALUES
NOW 255- IN TODAY'S DOLLARS IS
ABOUT THREE HUNDRED NINETY SIX
DOLLARS SO IT'S ALMOST DOUBLED.
SO THE PURCHASING POWER TO FIFTY
FIVE IS REALLY GONE DOWN OUR
CONSUMERS NEED ADDITIONAL
ACCESS.
WORK CONCERNED THAT A. B. THIRTY
TEN IS GOING TO REMOVE --
THAT OPTION RIGHT NOW INTO THE
STATE IT'S BEEN ALLOWED TO LAST
TWENTY ONE YEARS THAT YOU CAN
GET MULTIPLE LOANS IF YOU NEED
IT.
OF WE TRY TO BE RESPONSIBLE ONLY
GET WHAT THE CUSTOMER CAN AFFORD
AND CUSTOMERS WILL REGULATE
THEMSELVES AS LESLIE WITNESSES
THEY WILL GO OUT AND SEEK OUT
THE MONEY AND WE WANT TO MAKE
SURE THAT.
THE REGULATED BUSINESSES ARE THE
ONES THAT GO TO NOT OUT OF STATE
ONLINE --
UNREGULATED LENDERS THAT WE'VE
SEEN -- HAVE
HAD PROBLEMS WITH OUR CONSUMERS
IN THE PAST --
IN ADDITION OF THE PROBLEMS THAT
WE SEE WITH THE DATABASE IS THAT
MOST OF OUR CONSUMERS OF TOLD US
THE CONTINUE TO TELL US WHEN
THEY HEARD ABOUT THIS BILL.
WE DO NOT WANT OUR INFORMATION
IN A DATABASE.
BOB IN THE DATABASES ARE
PARTICULARLY MORE DIFFICULT FOR
THE SMALLER LENDER IF YOU LOOK
AT THE NUMBERS THE AMOUNT OF
LETTERS IN THIS --
THE DDT LAW ABOUT.
TWO OF THOSE LENDERS 80% OF THEM
OPERATE THREE STORES ARE LESS
SOURCE SMALL BUSINESS MAJORITY
OF SMALL BUSINESSES.
BE VERY DIFFICULT FOR THE SMALL
BUSINESSES TO COMPLY WITH SOME
OF THE RULES OF THIS DATABASE.
OF AND WHAT WE'VE SEEN IN OTHER
STATES IS THE SMALL LENDERS GO
AWAY.
SO I THINK BUT A FOR NOT ONLY ON
ISSUES RELATED TO THE DATABASE
THE LACK OF ACCESS IF IF WE
REMOVE THE AVAILABLE LOANS AND
GO TO ONLY ONE WOUND.
UP WE ARE OPPOSED TO THIS BILL
WE ASK YOU FOR AND ABOUT THANK
YOU.
THANK YOU MISTER CHAIRMAN WAS
JASON SMELTER HERE ON BEHALF OF
THE CALIFORNIA FOR ITS SERVICE
PROVIDERS ASSOCIATION STRONG
OPPOSITION.
THANK YOU NEXT WITNESS.
DOMINIC TOMORROW HERE ON BEHALF
OF THE NOVA HA HO SO SEE MYSELF
WITH THE PRIOR COMMENTS IN
OPPOSITION OF THE BILL.
THIS JURY MEMBERS RAINY CARRY
THEIR READING ASSOCIATES ON
BEHALF OF COMMUNITY CHOICE
FINANCIAL IN OPPOSITION.
WELL ANYWAY THIS WITH SPEAKING
TANAKA'S COMPANY ON BEHALF OF
THE ONLINE LENDERS ASSOCIATION
AND ALSO IN OPPOSITION FOR THE
REASONS PREVIOUSLY STATED.
THANK YOU.
BUT ABSOLUTE I WOULD CHECK INTO
CASH ALSO POST THANK YOU.
ERIC HARRIS OF THE CALIFORNIA
STATE NAACP IN OPPOSITION.
THANK YOU.
IN ADDITION WITH US IN
OPPOSITION RIGHT CHAIN HEARING
ON ANY QUESTIONS BY COMMITTEE.
YES.
MISTER VISSCHER.
DUBBED THE OPPOSITION CAME UP
WITH SOME PRETTY GOOD.
REASONS THAT CAN WHICH ADDRESS
FIRST -- TO
FIFTY FIVE GOING BACK TO
NINETEEN NINETY SEVEN AND THE
LACK OF BUYING POWER IN TODAY'S
CALIFORNIA.
AND I REPRESENT THE POOREST
DISTRICTS NOT ONLY IN CALIFORNIA
BUT UNITED STATES BUT YET TO
FIFTY FIVE IN SAN FRANCISCO
VERSES.
TULARE COUNTY TULARE HER ARVIN
IS A WHOLE DIFFERENT THING SO
THE TWO FIFTY FIVE NINETY SEVEN
I MEDIA WHAT SHOULD WE RAISE
THIS UP TO YOU DO YOU HAVE ANY
THOUGHTS ON THAT.
WELL I THINK THAT AND THERE
THERE'S EVIDENCE --
ON MY PART TO BEING WILLING TO
HAVE THAT DISCUSSION SINCE I YOU
KNOW THE AMENDMENT THAT WAS
TAKEN OUT WAS A PROPOSAL.
I'M A NOT FOR PAID APD IS 1%
PARTICULAR PRODUCT RIGHT BUT TO
CREATE.
ANOTHER PRODUCT ON THAT HAVE BUT
THAT WOULD GO UP TO A THOUSAND
DOLLARS AND I THINK PAYDAY WAS
STARTED FOR THREE HUNDRED AND
UNDER AND THAT SERVES A
DIFFERENT NEED.
ON THE BUT I THINK OF THOSE
NEEDS CHANGE SINCE.
NINETEEN NINETY SEVEN THE DOLLAR
AMOUNT PROBABLY PUPPIES GONNA
TAKE IT EIGHT GALLON ABSOLUTELY
COULD OCCUR IS SO SO WITH THAT.
DID YOU WANNA LIMIT TO JUST.
ONE PER MONTH.
BY IT BUT I HEARD THIS TERM
STACKING.
AND SO WHEN I HEARD IT MAYBE THE
SIX SOME IS PEOPLE TOOK SIX OR
THREE OR FOUR A YEAR CORRECT.
SO IF THE IF THERE IF IF THEY'RE
IF THEY'RE LIMITED.
THE AND WHERE WERE THEY GOING.
TO TO GET THE MONEY BECAUSE
THEY'RE GONNA GO GET THE MONEY
SOMEWHERE IS A NEED YOU HAVE
ANOTHER SOLUTION FOR THAT AND
THERE WHERE MULTIPLE THERE ARE
MULTIPLE PRODUCTS OUT THERE --
FORCED THE REAL ONE AND ABOVE
THE I TWENTY FIVE HUNDRED ABOUT
THEIR MULTIPLE PRODUCTS OUT
THERE I THINK AGAIN THAT WHAT
YOU SAW WAS EVIDENCE.
OF DID THE THOUGHT THAT LOOKING
AT WHAT THE RESEARCH WHAT ARE
SOME OF THOSE PRODUCTS AND IF IT
IF THERE'S THERE'S A PILOT
PROGRAM YOU'LL PROBABLY HEAR A
BILL ABOUT THE PILOT PROGRAM
COMING UP SOON.
I'M AND THAT'S THAT'S ONE OF THE
PRODUCT THAT'S OUT THERE.
OKAY WELL I'M STILL WORRIED
ABOUT YOU KNOW THIS IS INDUSTRY
IS PRETTY WELL REGULATED.
AND EITHER GOING TO FORCE PEOPLE
INTO AREAS WHERE IT'S NOT THE
REAL BAD GUYS ARE OUT THERE.
AND SO WOULD.
I JUST KNOW YOU KNOW YOU YOUR
INTENTIONS ARE VERY VERY GOOD.
BUT AT THE SAME TIME I THINK
THAT THE RESULT OF THIS IS GOING
TO BE VERY VERY BAD.
FOR SO WITH THAT I'M NOT GONNA
BE ABLE TO SUPPORT IT BECAUSE
YOU KNOW WE DO HAVE A NEED THERE
IS A MARKET THERE.
AND MARKETS WILL ALWAYS BE
THERE.
REGARDLESS OF THE LEGISLATION
BECAUSE IT IT IT WILL MOVE AND
THEY WILL FIND ANOTHER PLACE TO
GET IT I'D RATHER BE WITH THE
PEOPLE THAT WE KNOW AND THAT WE
DO REGULATE SO FOR THAT REASON I
CAN'T SUPPORT TODAY.
I APPRECIATE THE FEEDBACK
SENATOR REID AT LIKE AT I DON'T
DISAGREE THAT THERE IS A A LACK
OF NEED THERE IS AN NEED I AGREE
--
AND BECAUSE OF THAT AND I YOU WE
TRIED TO CONSIDER OTHER
ALTERNATIVES OTHER PRODUCS THIS
WASN'T THE RIGHT TIME IT WASN'T
THE RIGHT.
THAT CONVERSATION ABOUT WHAT
THAT WOULD LOOK LIKE --
BUT I'M IT IS I THINK A
REFLECTION OF THE FACT THAT
THERE ARE SOME SHARED ELEMENTS
AND HOW WE THINK ABOUT THIS
PARTICULAR.
AYE ASPECT --PRODUCT A AND
INDUSTRY.
YOU'RE IN ADDITION QUESTIONS.
MITCHELL MONNING TO A CLOSE.
I DO AND I APPRECIATE TO ADD THE
FEEDBACK I WANT TO ADDRESS A
COUPLE THINGS ON MY I'LL START
WITH THE PRIVACY IN THE CONCERNS
FOR PRIVACY.
I'M WHEN LOOKING AT ADVANCE
AMERICA AND THEIR SEC FILING
THEY CURRENTLY --
COLLECT ON PERSONAL INFORMATION
A INFORMATION SUCH AS AND NAME
ADDRESS PHONE NUMBER PROOF OF
IDENTIFICATION EMPLOYMENT
INFORMATION OR SOURCE OF INCOME
BANK ACCOUNT AND REFERENCES.
AND THIS BILL DOES NOT COLLECT
I'M NEARLY ALL THE INFORMATION
SO THAT MEANS THAT THERE ARE
ALREADY DATABASES TAT THESE
COMPANIES HAVE WITH THIS
INFORMATION.
I'M AND THIS --
DATABASE IS MUCH MORE LIMITED
I'M A DOES NOT COLLECT ADDRESS
PLEASE OF ENVIRONMENT AN IN AND
EMPLOYMENT ALIEN REGISTRATION
NUMBER ON AGAIN IT'S MUCH MORE
LIMITED ITS TO UNDERSTAND WHAT
IT WOULD LOOK LIKE TO HAVE THE
AND THE TICKETS FOR THE INDUSTRY
REALLY TO USE. TO BE ABLE TO
UNDERSTAND HOW WHAT THEIR MARKET
IS USING A HOW OFTEN THEY'RE
USING AT AND ADDITIONALLY I
THINK THAT I'M WE WOULD I WANT
TO KNOW THE IN THE AND THE AIR
YOU KNOW IT MENTIONS ON SEVEN OF
FOURTEEN AND THE CFPB RULING.
RIGHT THAT KIND OF NATIONAL ON
FEDERAL CONVERSATIONS THAT HAVE
BEEN HAPPENING AROUND THE SPACE
THAT WANT.
ON A DATABASE TO HAPPEN THAT
RULING AND IS NOW IN JEOPARDY
BUT FOR YEARS THE TASK FORCE WAS
WORKING ON THIS THEY WANT.
ON A DATE A DATABASE ON AND THE
REASON THEY WANT THAT IS TO MAKE
SURE THAT --
THE LOANS THAT ARE NOT THERE'S
NOT OUTSTANDING OUT STAND OUT
STANDING LOANS ON IN THIS AREA
SO WHAT WE BELIEVE WE'VE BROUGHT
FORWARD TO YOU IS SOMETHING
THAT'S COME FROM.
AT YOU KNOW STATEWIDE NATIONAL
TASK FORCE OF CONVERSATIONS IT'S
CONSISTENT WITH WHERE THE
FEDERAL GOVERNMENT WAS GOING ON
THERE'S A THREAT THAT THAT WON'T
BE THERE HAD THIS MOVES FORWARD.
ON THIS WOULD HAVE ACTUALLY BEEN
IN PLACE AND WHAT WE ARE DOING
AS AND I THINKA STATE IS TRYING.
TO REALLY LOOK AT SOME OF THE
ELEMENTS THAT --
INDUSTRY EXPERTS MANY EXPERTS
AROUND THE COUNTRY WERE WORKING
ON AND I ALSO KNOW THAT THEIR E.
I'VE CIRCULATED --
SENT A LETTER --
FROM AN ISSUE S. SENATE FORWARD
WITH SOME OF THIS ACT CFPB
REGULATIONS AND I THINK THAT
THIS IS ONE ELEMENTS AND THAT
WERE PULLING OUT OF A LOT OF
REGULATIONS THAT THEY WERE GOING
TO MOVE FORWARD.
THAT WE THINK IT'S IMPORTANT
THAT YOU HAVE HERE IN THE STATE.
I AGAIN I AM OPEN TO HAVING
CONVERSATIONS WHEN THE TIME IS
RIGHT ABOUT WHAT WE DO I'M
OVERALL.
AND AT LEAST IN TERMS OF OTHER
PRODUCTS AND THAT --
IT WE'VE BEEN HESITANT TO ADOPT
AND MODELS THAT CHANGE PAID
EIGHT THIS IS STILL KEEPING THE
PRODUCT OUT THERE THE PRODUCT IS
NOT CHANGING IT DOESN'T AND IT
KILL THE INDUSTRY --
AND IT CERTAINLY ALLOWS --
FOR BETTER INFORMATION COLLECTED
BUT NOT AS MUCH DATA IS
CURRENTLY IS BEING HELD BY THE
COMPANIES THEMSELVES.
I RESPECTFULLY ASK FRAN AYE
VOTE.
PRISON TUITION AND I GUESS WERE
SEEKING A MOTION A DO PASS TO
JUDICIAL.
COMMITTEE AS AMENDED.
YOU CAN IN MOTION [inaudible]
I'M SORRY.
ANYA AND IT AND YOU HAVE AGREED
TO TAKE ALL TACTICAL A MEDINA
EIGHTY ALL THE AMENDMENTS GOT
[inaudible]
YES.
LACKEY MOTION AT THIS TIME SO --
OTHER MEMBERS COME WALLS SEE
WHERE WE STAND THERE OKAY.
THANK YOU.
EXCEPT A FEW KNOBS [inaudible]
FLETCHER.
YOU CAN'T CHANGE IT BACK.
I JUST WANT TO IT WE HAVE --
YOUR MOSHE ITEM TO A. B.. TWO
THREE SEVEN WHEN YOU'RE READY.
THANK YOU AND GOOD AFTERNOON
CHAIR IN MEMBER.
AB TWO THIRTY SEVEN WOULD EXPAND
ACCESS TO SAFE FOR CONSUMER
LOANS BY RAISING THE UPPER LIMIT
OF LOANS AVAILABLE UNDER THE
PILOT PROGRAM. FOR INCREASE
ACCESS TO RESPONSIBLE SMALL
DOLLAR LOANS TO TEN THOUSAND
DOLLARS CURRENTLY MANY AND
BACKED IN UNDERSERVED
COMMUNITIES LACK ACCESS TO
AFFORDABLE CREDIT THROUGH
TRADITIONAL FINANCIAL
INSTITUTIONS SUCH AS BANKS OR
CREDIT UNIONS.
INSTEAD WHEN YOU WALK THROUGH
COMMUNITIES LIKE MINE YOU SEE
PAYDAY LENDERS AUTO TITLE LOAN
OFFER LOANS THAT OFTEN HAVE
TRIPLE DIGIT INTEREST RATES ON
THE CORNER IMPACT OF EVERY
SINGLE BLOCK. FOR THESE
COMMUNITIES WHERE MANY LACK
CREDIT HISTORIES THE PRODUCTS
THESE MC'S OFFER ULTIMATELY AND
AFFORDABLE IN CAN TRAP
INDIVIDUALS IN A CYCLE OF
POVERTY.
IN ONE NOTABLE EXAMPLE.
THE LA TIMES REPORTED BORROWER
TOOK OUT FIVE THOUSAND ONE
HUNDRED TWENTY FIVE DOLLAR LOAN
AND AN APR OF A HUNDRED AND 16%.
UNDER THE TERMS OF HER LOW THIS
BAR WHAT ULTIMATELY PAY TOTAL OF
JUST OVER FORTY TWO THOUSAND
DOLLARS OVER THE COURSE OF SEVEN
YEARS.
THIS IS UNACCEPTABLE.
UNDER THE CALIFORNIA FINANCE LAW
THE LEGISLATURE CREATE A PILOT
PROGRAM WITH THE INTENT OF
INCREASING CONSUMER ACCESS TO
SMALL DOLLAR LOANS WHILE
ENSURING STRONG MEANINGFUL
CONSUMER PROTECTIONS.
SOME OF THESE PROTECTIONS
INCLUDE THE PILOT PROGRAM THAT
DO NOT EXIST IN THE CFL INCLUDES
THE INTEREST RATES CAPPED AT
36%.
LOANS THAT MUST BE UNSECURED
LENDERS MUST COMPLETE
UNDERWRITING TO ENSURE BORROWERS
HAVE THE ABILITY TO REPAY.
LENDERS MUST REPORT LOANS TO
CREDIT EIGHT IRIS CAN ACTUALLY
ESTABLISH A CREDIT.
IN NO PREPAYMENT PENALTIES FOR
BORROWERS.
EXPANDING THE UPPER LIMIT OF THE
PILOT PROGRAM TO TEN THOUSAND
DOLLARS TO PROVIDE RELIEF TO
CONSUMERS BY MAKING LOANS OVER
TWENTY FIVE HUNDRED DOLLARS
AVAILABLE UNDER THE PILOT
PROGRAM.
THE NEED TO INCREASE ACCESS TO
SAFE AFFORDABLE OPTIONS FOR
PRODUCTS IN THIS RANGE IS
OVERWHELMINGLY CLEAR.
ACCORDING TO THE DEPARTMENT OF
BUSINESS OVERSIGHT THE NUMBER OF
LOANS ISSUED IN THE 250-021-0000
RANGE HAVE INCREASED NEARLY
6100% BETWEEN TWO THOUSAND NINE
AND TWO THOUSAND SIXTEEN AND
TWENTY SEVENTEEN ALLOW THE DB
ó REPORTS OF JUST OVER TWO
HUNDRED FORTY FIVE THOUSAND
CONSUMER LOANS WERE ISSUED.
IN THIS RANGE.
THAT REPRESENTS JUST OVER 50% OF
ALL CONSUMER LOANS ISSUED UNDER
THE CFL.
FURTHERMORE NEARLY HALF OF ALL
LOANS ISSUED IN THIS RANGE HAD
TRIPLE DIGIT AB OURS CONSUMERS
DESERVE A DIFFERENT AND BETTER
LOAN PRODUCTS THAT HAVE STRICT
CONSUMER PROTECTIONS AND
ENSURING THE VIGILS HAVE THE
ABILITY TO REPAY AND ARE NOT
STUCK IN THE PSYCHOPATH ALREADY.
THE PILOT PROGRAM REPRESENTS ONE
OF THE BEST AVENUES TO ACHIEVE
THAT.
I HAD.
NO WE'RE GONNA HAVE SOME
DISCUSSIONS ABOUT ABOUT THE BILL
AND I I I WILL WAIT. FOR THOSE
BUT IN THE MEANTIME I HAVE SOME
WITNESSES TO SEE --
SPEAK IN SUPPORT [inaudible]
OR PAY.
GOOD AFTERNOON --
CHAIRMAN BRADFORD --
MY NAME IS JAMES GUTIERREZ AND
I'M A LATINO SOCIAL ENTREPRENEUR
BASIN SILICON VALLEY HAVE BEEN
--
FOCUSED ON SOCIAL FINANCE FOR
THE LAST FIFTEEN YEARS AND
FIGURE OUT HOW DO YOU HELP LOW
INCOME PEOPLE BILL CREDIT GET
ACCESS TO CAPITAL.
I CURRENTLY ON THE CO FOUNDER
AND CEO OF IN SEAT --
WE ARE A RECENTLY CERTIFIED BY
THE U. S. TREASURY DEPARTMENT A
COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTION CDF I AND WERE ALSO
PILOT PROGRAM LENDER SINCE.
TWO THOUSAND FOURTEEN OUR
MISSIONS VERY SIMPLE WE WANT TO
PROVIDE ECONOMIC JUSTICE TO LOW
INCOME PEOPLE AND IMPROVE THEIR
FINANCIAL HEALTH AND INCREASE
ACCESS TO CAPITAL.
WE HAVE A MODEL THAT'S NEW AND
UNIQUE WE USE TECHNOLOGY TO GET
INTO LOW INCOME NEIGHBORHOODS WE
FIND THAT.
THERE'S A LAST MILE PROBLEM.
OF OPENING UP BRICK AND MORTAR.
IN LOW INCOME NEIGHBORHOODS
BECAUSE IT'S VERY EXPENSIVE TO
SET THAT UP.
THERE'S OVER TWELVE THOUSAND
PAYDAY LOAN STORES ACROSS THE
COUNTRY MORE THAN MCDONALD'S AND
IF WE WANTED TO OPEN UP TWELVE
THOUSAND BRITAIN MORE LOCATIONS
OF THE VERY COSTLY.
SO INSTEAD WE REALIZE THAT
THERE'S A SUPERMARKET ACROSS THE
STREET THERE'S A MONEY TRANSFER
COMPANY.
THERE'S AN INSURANCE AGENT WHAT
IF WE CAN EQUIP ALL OF THOSE
BUSINESSES IN THESE LOW INCOME
NEIGHBORHOODS WITH THE ABILITY
TO OFFER PILOT PROGRAM LOANS
THAT'S WHAT OUR MODEL DIES IT'S
CALLED THE FINDER MODEL --
BUT WE'VE USED WITH GREAT
SUCCESS TO REALLY INCREASE
ACCESS --
THE PILOT PROGRAMS HAS BEEN VERY
SUCCESSFUL FOR ALL THE REASONS
MENTIONED.
IN THAT LARGER LOAN SPACE WHERE
CUSTOMERS NEED LARGER LANDS AND
FORCEFULLY 50% OF THAT MARKET AS
WE'VE HEARD IS OVER A 100% APR
AND SO WE'D LOVE TO BE ABLE TO
TAKE THE PILOT PROGRAM.
PROVIDE GOOD COMPETITION AND
GIVE PEOPLE BETTER OPTIONS --
WE STRONGLY ASK YOU TO SUPPORT
THIS BILL FOUR FOUR SIMPLE
REASONS NUMBER ONE CONSUMERS
DESERVE BETTER CHOICE AND BETTER
COMPETITION IS NEEDED AND THESE
LARGER THAN SPACES.
ARE NUMBER TWO MORE INNOVATIVE
MODELS ARE NEEDED --
AT OUR FINER MODEL FOR EXAMPLE
WE'VE ASHLEY LOWER LOSSES IN
MANY CASES THE AND MODELS THAT
USE BRICK AND MORTAR --
FOR EXAMPLE --
IF WHEN WE LOOK AT CUSTOMERS WHO
HAVE MISSED ONE PAYMENT THE
INCIDENCE OF THAT USING FINDER
LOW JUST 10%.
CORDY DO DPO REPORT TWO THOUSAND
SEVENTEEN NOT USING FINDERS IS
20% IS DOUBLE.
ARM SO WE'VE SEEN GOOD OUTCOMES
IN OUR MODEL WE'VE SEEN AT THAT
OVER TWO THIRDS OF OUR BARS WE
CAN IMPROVE.
THEIR CREDIT BY OVER THREE
HUNDRED POINTS GONE FROM LOAN
ONE THE LOAN TO FOR THOSE WHO
HAVE A SCORE --
AND THEN LASTLY.
I'M JUST BECAUSE OUR PEOPLE ARE
POOR DOESN'T MEAN THAT THEY
DON'T HAVE NEEDS THEY HAVE REAL
NEEDS PEOPLE HAVE SIDE
BUSINESSES THAT THEY'RE TRYING
TO GROW --
THEY MIGHT BE NEEDING --
THE USE OF IMMIGRATION ATTORNEYS
AND SERVICES THEY MIGHT GO TO
THE DENTIST AND THEY HAVE A LOT
OF WORK THAT THEY NEED TO DO
IT'S GONNA COST AND FIVE
THOUSAND DOLLARS AND THOSE ARE
REAL NEEDS AND WE WANT TO BE
ABLE TO SERVE THOSE NEEDS.
AND JUST TO FINISH YOU KNOW THE
PILOT PROGRAMS BEEN VERY
SUCCESSFUL FROM TWO THOUSAND TEN
CREATING AN ALTERNATIVE TO
PAYDAY.
THROUGHOUT TIME WE LOOK AT THOSE
LARGER LOANS AND HELP CREATE
BETTER ALTERNATIVES THERE.
THERE'S UNDERWRITING BILLS
CREDIT THERE'S A 35% CAP ON
LARGER LOANS.
AND THAT RIGHT NOW IN OUR
COMPANY WILL YOU SEE STORES IN
JUST THREE YEARS REALLY BUILDING
ACCESS THROUGH THIS FINDER MODEL
SO WE WOULD STRONGLY URGE YOU TO
SUPPORT.
AB TWO THIRTY SEVEN AND AN AYE
VOTE THANK YOU VERY MUCH FOR
YOUR TIME THANK YOU.
THANK YOU MEMBERS FOR ALLOWING
ME THE OPPORTUNITY TO TO SPEAK
TODAY MY NAME.
IS MARIO TRUJILLO I AM A CUBAN
IMMIGRANT --
THE DEGREE OF SEPARATION BETWEEN
ME RUNNING THE ORGANIZATION THAT
I RUN AND ONE OF MY CUSTOMERS
ARE VERY LITTLE.
AND WE'RE VERY --
COGNIZANT OF THAT WERE VERY
HUMBLE IN THE WAY WE TREAT OUR
CUSTOMERS.
THEY ARE AND WE HAVE A PASSION
FOR THEM.
DOLE EX IS A COMPOUND ON THE
PRESIDENT'S SEAL DAHLE EXTOL EX.
THERE IS A FINANCIAL SERVICES
COMPANY PROVIDING VERY BASIC
FINANCIAL COMMUNICATIONS
SERVICES. TO PRIMARILY HISPANICS
AND THE UNITED STATES AND THE
GREAT MAJORITY OF ALL OF THEM
ARE.
SEVERELY UNDERSERVED AND UNDER
BANKED SOME OF THEM ARE A BAD.
WE EMPLOY APPROXIMATELY SEVEN
HUNDRED SEVENTEEN HUNDRED
PEOPLE.
INCLUDING ABOUT TWO HUNDRED AND
FIFTY IN CALIFORNIA.
WE HAVE FIVE HUNDRED LOCATIONS
ARE IN THE UNITED STATES
APPROXIMATELY A HUNDRED THIRTY
IN CALIFORNIA [inaudible]
AND ABOUT ONE OF THE CRITICISMS
ARE ONE OF THE ONE OF THE
REASONS I CAME --
LAST NIGHT COULD COULD TESTIFIED
TODAY IS BECAUSE I KEEP READING
WHAT I BELIEVE TO BE.
FALSE STATEMENTS ABOUT THE WHOLE
CONCEPT OF THE FINDERS.
AND A HOLE IN A FEW MINUTES LIKE
AND CONVINCE YOU.
THAT WALL I DON'T REPRESENT A
100% OF THE FINDERS IN THE
PROGRAM.
I REPRESENT APPROXIMATELY HALF
OF THE LOCATIONS.
MIDDLE AND DEFY HAS OPENED TODAY
SO AROUND THREE HUNDRED FIFTY
LOCATIONS IN FOUR STATES --
WE ARE A HIGHLY REGULATED
COMPANY ONE OF THE CRITICISMS.
IS THAT WE ARE ESSENTIALLY ARE
UNLICENSED BROKERING LOANS FOR
COMPENSATION.
AREN'T WE ARE HIGHLY REGULATED
BUSINESS.
WE ARE LICENSED AND THIRTY FIVE
STATES.
WE ARE SUBJECT TO THE
JURISDICTIONS OF EVERYONE OF
THOSE STATES.
AND THE FEDERAL GOVERNMENT
INCLUDING.
FENCING WHICH WOULD HAVE TO
REGISTER WITH.
INCLUDING OTHER TRASH ON THE
PART OF THE TREASURY DEPARTMENT
WE SUBJECT OURSELVES. TO THE BA
SAY ACT THE PATRIOT ACT THOUGHT
FRANK WE WERE AUDITED --
BY THE CFPB ON IN THE LAST TWO
YEARS.
WE ARE SUBJECT TO A WHAT SEEMS
TO BE LIMITLESS AMOUNT OF
REGULATIONS --
INCLUDING THE DB ó AND
CALIFORNIA.
OUR WE HAVE AN EXCELLENT
RELATIONSHIP WITH THE REGULATORS
--
DOT LICENSING REQUIRES THE
COMPANY TO BE.
QUALIFIED IN MANY WAYS
INCLUDING.
MYSELF OWNERS MAJORITY OWNERS
AND OFFICERS HAVING TO GO
THROUGH --
BACKGROUND CRIMINAL BACKGROUND
CHECKS --
FINGERPRINTS FINANCIAL REVIEWS
AND COMPETENCY BASED ON OUR ON
OUR BACKGROUND IN ADDITION TO
THAT.
ARE THERE ARE TANGIBLE NET WORTH
REQUIREMENTS FOR OUR COMPANY
CALIFORNIA IS SEVERAL MILLION
DOLLARS --
THERE'S PERMISSIBLE INVESTMENT
REQUIREMENTS BASED ON THE BOOK
ON THE VOLUME OF BUSINESS THAT
WE DO AND ALL OF THE STATE'S.
AND AND ALL OF THAT YIELDS
APPROXIMATELY.
OVER A HUNDRED AUDITS A YEAR
FROM THE THIRTY FIVE STATES.
INDEPENDENT AUDITS THAT WE WERE
REQUIRED TO GET.
ALL OF OUR BANKING PARTNERS WE
HAVE NINE WE HAVE EIGHT SORRY --
EIGHT EIGHT OF THEM AUDITOR'S
EVERY SINGLE YEAR MANY OF OUR
INTERNATIONAL BANKING PARTNERS
AUDIT CLOSE ALSO EVERY YEAR.
I I KICKING YOU GET THE POINT
RIGHT --
ANOTHER THING THAT WE HAVE BEEN
CRITICIZED FOR THIS FINDER
CAPACITY IS IS THAT.
THAT THE QUALITY OF THE SERVICE
MY NOT BE VERY GOOD.
UNDER THE PILOT PROGRAM THAT WE
OPERATE.
UNDER IN THE AND THAT IS ALL THE
LOANS WERE DOING THAT DAY WITH
LINDA --
FIVE WE ARE REGULATED AYE
THROUGH LEN DEFY IN THE BUSINESS
THAT WE DO TOGETHER THERE ARE AS
MANY THINGS IN THE APOLLO
PROGRAM.
IN TERMS OF CONSUMER PROTECTIONS
THAT WE CAN THEY ARE THAT WE
CANNOT DO.
AND I WORRY ABOUT THE ONES WE
CANNOT DO MORE THAN THE OTHERS.
UP BECAUSE I WANT TO MAKE SURE
THAT OUR PEOPLE ARE DOING
EXACTLY WHAT WE CAN.
AND NOT DO ANYTHING THAT WE
CANNOT WE HAVE BEEN A VISIT IT
BY THE D. BELA CALIFORNIA
THROUGH THE AUDITS OF LINDA FLY
IN THE LAST --
TWO YEARS --
WE HAVE NOT HAD ANY ISSUES WITH
WITH ANYTHING.
I'M OUR ERROR RATE WHICH IS YET
BE BE REQUIRED US TO KEEP UP
WITH WE WE WE PROCESS.
THIS YEAR ROUGHLY FOUR BILLION
DOLLARS OF MONEY MOVING A
ANNUALLY AND DO ROUGHLY EIGHTEEN
MILLION TRANSACTIONS WE HAVE
ABOUT FOUR OR FIVE HUNDRED
COMPLAINTS WE ARE REQUIRED ALONG
THEM ALL IN.
ROUGHLY HALF OF THOSE COMPLAINTS
OUR QUALITY OF SERVICE WE DID
OPEN ON TIME THINGS THAT ARE.
NOT GOOD BUT THEY'RE NOT REALLY
ERRORS.
AND THAT DEFINITION BY THE CFPB
CELESTE CALL IT TWO HUNDRED AND
FIFTY A MONTH THAT IS POINT ZERO
ZERO ZERO FOUR ERROR RATE AND WE
DEAL WITH ALL OF THEM.
AND TO THE EXTENT THAT WE
PROMISED TO DELIVER TRANSACTION
BY CERTAIN TIME AND WE DON'T
WITHIN THOSE TWO HUNDRED WE
REIMBURSE PEOPLE A 100% OF THEIR
COST.
I CAN GO ON FOREVER IN A LONG
PERSONALLY ABOUT A FACE.
TO THANK YOU BUT BUT BUT WE ARE
HIGHLY REGULATED WHO ARE HIGHLY
QUALIFIED WE HAVE INSTITUTIONAL
OWNERS IN A PROFESSIONAL
MANAGEMENT TEAM.
AND I WANT TO KNOW THAT THE
STATEMENTS ABOUT NOT BEING
LICENSE OR STATEMENTS ABOUT.
EQUALITY ARE JUST ABSOLUTELY
FACTUALLY INCORRECT IN CLOSING I
WOULD SAY.
THAT IF IF THE OBJECT IS TO
PROVIDE ACCESS TO CAPITAL.
WHICH IS MY INTEREST AND IN
DOING THIS WITH OUR CUSTOMERS WE
HAVE ROUGHLY TWO MILLION
CUSTOMERS WORLDWIDE.
MAYBE FOUR HUNDRED THOUSAND IN
CALIFORNIA.
THIS IS THE BEST PROGRAM.
BAR NONE AND WE'VE SEEN SOME
INTERESTING DISCUSSIONS HERE
TODAY BECAUSE OF THE RATE THE
CONSUMER PROTECTIONS.
BUILDING CREDIT AND SO ON SO I
HOPE YOU SUPPORT AB TWO THIRTY
SEVENTH OKAY THANK YOU MORE
WITNESSES IN SUPPORT.
CHRIS ROSA ON BEHALF THE SILICON
VALLEY LEADERSHIP GROUP IN
SUPPORT.
PLEDGE SHEPHERD PRESENTING THEY
CALIFORNIA ASIA PACIFIC ISLANDER
CHAMBER OF COMMERCE IN SUPPORT.
NICHOLAS CHáVEZ ON BEHALF
UNITED FARM WORKERS IN SUPPORT.
ANY OTHER SUPPORTERS.
AND I CAN WE HAVE THE OPPOSITION
COME UP [inaudible]
BUT THEN [inaudible]
GET OUT.
SKINNER BRADFORD AND MEMBERS OF
THE BANKING AND FINANCIAL
INSTITUTIONS COMEDIAN --
THANK YOU FOR THE OPPORTUNITY TO
PROVIDE TESTIMONY TODAY MY NAME
SAYS HE KILLED OVERSEE NO AND I
AM A POLICE ASSOCIATE OF THE
CENTER FOR RESPONSIBLE LENDING.
WE ARE A NONPROFIT NONPARTISAN
--
POLICE ORGANIZATION DEDICATED TO
PROTECTING HOME OWNERSHIP AND
FAMILY WEALTH BY FIGHTING
PREDATORY LENDING PRACTICES.
WE ARE ALSO AFFILIATED WITH SELF
HELP A CREDIT UNION WOULD OVER
EIGHTEEN BRANCHES IN THE STATE
OF CALIFORNIA. ZERO STRONGLY
OPPOSES AB TWO THIRTY SEVEN
WOULD THINK IS A DANGEROUS BILL
WHICH WILL LIKELY HARM LOW
INCOME CONSUMERS BECAUSE IT
RAISES THE LOAN AMOUNT.
OF THE PILOT PROGRAM QUITE
SIGNIFICANTLY CURRENT MAXIMUM OF
TWENTY FIVE HUNDRED THE BILL
WILL CONTINUE TO ALLOW LENDERS
TO MARKET LOANS THROUGH OTHER
COMPANIES CALLED FINDERS WHOSE
ACTIVITY SINCE INITIALLY
INVOLVED --
WILL NICE IS BROKEN FOR
COMPENSATION.
PAYDAY LENDERS AND CHECK CASHING
SCAM REFINERS AND THEY MAY BE
LICENSE US BETA LENDERS WILL
CHECK CATCHES BUT THAT WILL ARE
NOT LICENSE AS FINDERS.
THE BILL WILL PROVIDE NO
ADDITIONAL OVERSIGHT OVER
FINDERS OR REGION EIGHT INCHES
LARGER LOANS.
A PILOT PROGRAM WINTERS ARE NOT
REQUIRED TO ACCOUNT FOR A
BORROWER SIGNIFICANT EXPENSES
SUCH AS RENT IN ASSESSING
WHETHER THE LOAN IS AFFORDABLE.
AND THE PROGRAM ALLOWS LONG
COSTS TO REACH UP 250% OVER BARS
GROSS MONTHLY INCOME.
AB TWO THIRTY SEVEN OF RUNS
COUNTER TO THE ENTIRE PURPOSE OF
THE PILOT PROGRAM WHICH IS TO
ENCOURAGE SELF SPOUT CITY FOR
SMALL DOLLAR LOANS ALTERNATIVES.
HE WILL NOT IMPROVE THE PILOT
PROGRAM AND WILL NOT IMPROVE
DELIGHTS OF ECONOMICALLY ONE
THERE WILL CALIFORNIANS.
SO THEREFORE WE OR SHOULD TO
VOTE AGAINST THIS BILL.
THANK YOU.
IS CHAIRMAN MEMBERS MY COMMUTES
AND HAVE BEHALF OF OPPORTUNE --
ONE OF THE LEADING SMALL DOLLAR
RESPONSIBLE LENDERS IN THE STATE
OUT WE ARE.
FROM ONE OF THE MAINSTAYS OF THE
PILOT HOW WE BELIEVE IN THE
PILOT WE'RE GLAD TO HEAR.
THAT OTHER PEOPLE DO AS WELL I
THINK --
WE'VE HEARD A LOT OF NUMBERS IN
A LOT OF STATISTICS I THOUGHT.
ON THE DEPARTMENT HAD JUST
RELEASED ITS NEWEST REPORT ON
PILOT WENDY JUST A COUPLE OF
DAYS AGO HAVE MIL TO REALLY DIG
INTO IT.
UP BUT SOMETHING CAUGHT MY EYE
JUST FROM THE PRESS RELEASE THAT
THEY DID FOR IT IS JUST A COUPLE
OF CONTRASTING FACTS --
ONE IS IS THAT --
AND AND THERE IS A FUNDAMENTAL
DISAGREEMENT ABOUT WHETHER THIS
MODEL --
WHICH ISN'T THAT.
UNIQUE USING THIRD PARTIES TO
ORIGINATE LOANS HAS BEEN WITH US
FOR A LONG TIME.
I'M THEY DO USE COMPUTERS AND
AND A BRANCH OF THAT BUT IT'S
NOT AS NEW OR IS UNIQUE IS IS
MAYBE FOLKS WOULD LIKE TO MAKE
IT BUT ACCORDING TO THE DDO AND
THEY'RE JUST THE MOST RECENT
PART THEY DID --
AS IT RELATES TO CREDIT SCORING
CREASE --
WHICH IS.
REALLY THE POINT OF THE PALACE
PRODUCT PRODUCT OUR PROJECT IN
MANY WAYS --
65% OF THOSE THAT RECEIVE THEIR
LOAN WITHOUT A FINDER --
SAW A CRITICAL SCORING CREASE.
COMPARED 2406% WERE FINDERS
REVIEWS.
THE OTHER ONE THAT I THOUGHT WAS
KIND OF INTERESTING THAT I WANT
TO HIGHLIGHT FOR THE COMMITTEE
IS.
WHICH WAS IN THIS IS THAT I'M
JUST READING AT THIS POINT WITH
RESPECT BORROWING COME. SIXTY
THREE POINT 5% LOANS MADE
WITHOUT FINDERS WENT TO
BORROWERS IN LOW AND MODERATE
INCOME CENSUS TRACKS.
COMPARED TO FIFTEEN POINT 9% FOR
LOANS MADE.
USING FINDERS WHICH IS.
OUT OF FORTY SEVEN POINT
DISPARITIES.
SO A COUPLE OF THINGS OBVIOUSLY
THIS IS A COMPLEX TOPIC --
THERE'S A LOT GOING ON HERE
THERE'S BEEN YOU KNOW VARIOUS
DISCUSSIONS THROUGHOUT THE
YEARS.
THIS COMMITTEE ITSELF A COUPLE
YEARS AGO [inaudible]
EXPANDED FINDERS AND WHO COULD
BE THEM COMPENSATION NUMBER
THINGS LIKE THAT IN AND WHAT WE
THOUGHT AT THE TIME THAT THAT
WAS -- WHO
ELSE WOULD A FAVOR FOR OF IT BUT
BUT IT IT WAS AN OPPORTUNE AB
EXPLORE WHAT FINDERS ARE DOING
WHO THEY ARE --
THE OTHER ARE REALLY.
IT AL THINKING WAS EVER CLAIM
THAT THEIR UNREGULATED THEY'RE
JUST NOT REGULATED FOR THE
PARTICULAR ACT THAT THEY DO AS
FINDERS [inaudible]
TOM.
YOU KNOW JUST BECAUSE SOMEONE IS
IS MONITORING A CAR SPEED DOES
NOT MEAN THERE MONITORING THE
EMISSIONS THAT COME OUT OF THE
TAILPIPE AND AND SO.
THAT'S A CONCERN FOR US THERE'S
A CONCERN OF FOR MANY OF THE
ENTITIES IN THIS GENTLEMAN THAT
TESTIFIED --
MAY NOT BE ONE OF THOSE ENTITIES
BUT THERE ARE NUMBER OF ENTITIES
THAT ARE ACTING AS FINDERS --
AND WE DON'T BELIEVE THEY GET
NECESSARILY THE SCRUTINY OF THE
OVERSIGHT THERE CERTAINLY. TO MY
KNOWLEDGE IS NO REQUIRED.
AUDITS FOR THESE ENTITIES FOR
THIS PARTICULAR ACTIVITY AND
THAT'S THAT'S SOMETHING THAT
THAT REALLY CONCERNS US.
I'M WE DON'T THINK THEY SHOULD
BE DONE ON A GOVERNMENT BASIS WE
THINK THEY SHOULD BE.
ON SOME BROADER STAKEHOLDER
CONVERSATIONS --
AND WE BELIEVE THIS ISN'T
NECESSARILY THE PROPER WAY TO
EXPAND PILOT LENDING --
AND WE ASK FOR IN A VOTE
[inaudible]
WHERE OPPOSITION?
I MEAN IT WAS ANA LADEN WITH
CONSUMERS UNION ECHOING THE
SUBSTANTIVE CONCERNS --
RAISED PREVIOUSLY SOMEONE
EXPRESSED SOME PROCEDURAL
CONCERNS THAT THIS IS BEING
RUSHED THROUGH VERY QUICKLY AT
THE END OF THE SESSION ALSO THIS
IS A PILOT PROGRAM THE
DEPARTMENT OF BUSINESS OVERSIGHT
IS.
EVALUATING IF WE KEEP CHANGING
THE PILOT HOW WILL THEY
UNDERSTAND WHAT WORKS AND WHAT
DOESN'T WE URGE YOU TO KEEP THE
PILOT GOING AS IS SO DPO CAN
REALLY DO ITS VALUATION PROPERLY
THANK YOU.
TECH MERMAN CALIFORNIA LOW
INCOME CONSUMERS COALITION IN
OPPOSITION THINK.
I RYAN FLANAGAN BEHALF OF
LANDMARK FINANCIAL SERVICES --
WERE A RESPONSIBLE INSTALLMENT
WONDER WE SERVE OVER THIRTY
THOUSAND CALIFORNIANS IN TWENTY
NINE LOCATIONS --
WE GENERALLY SUPPORT ANY TYPE
PROGRAM THAT WOULD.
IN A PROMOTE ADVERTISING
BENEFICIAL I'M NOT.
IT'S ARE ECHOING MR COMMUTES IN
STATEMENT WE FEEL LIKE THIS BILL
FALL SHORT OF THAT GOAL SO
RESPECTFULLY BOWS THANKS.
I'D LIKE A CIRCUS ON BEHALF OF
LATIN BUSINESS ASSOCIATION AT
CENTRAL VALLEY MAYORS AND
LATINO.
ELECTED OFFICIALS COALITION ON
OPPOSITION.
GOOD AFTERNOON PAUL GOODMAN WITH
THE GREEN LINING INSTITUTE OUT
WE THINK THAT THIS BILL CREATES
AN ANGRY SETTLEMENT OF RISK FOR
CAN SLOW INCOME CONSUMERS
WITHOUT PROTECTIONS.
AGAINST DECEPTIVE MARKETING OR
ABOUT WAYS TO ENSURE
AFFORDABILITY THEREFORE WE
OPPOSE THANK.
THE VICE CHAIR MEMBER SCOTT
GOVERNOR ABOUT CALIFORNIA
FINANCIAL SERVICES ASSOCIATION
AND OPPOSITION.
ASSEMBLYMEMBERS JOHN NOR WOULD I
BE AFTER THE CONSUMER CREDIT
INDUSTRY ASSOCIATION ALSO POSED
LIKE YOU [inaudible]
WELL.
SELECT A COLOR --
YOU KNOW I'M A LITTLE TAKEN
ABACK I'D HOPE TO HAVE A YOU IT
WE HAVE STORY AND PUT IT BACK TO
COMMITTEE THAT IF QUESTIONS
PLEASE I THOUGHT THEY WERE JUST
GOING TO BE SOME DISCUSSION OF
AMENDMENTS SO [inaudible]
ADAM I YEAH I'M NOT SURE THE
CHAIR WHEN --
I THINK WE HAD COME CLOSE TO
MAKING SOME DECISIONS --
I DO I'M HOPEFUL HE CAN COME
BACK WEEK I CAN JUST LET ALL OF
YOU I SHARE CAN WE JUST.
TEMPORARILY PUT THIS ISSUE ON
HOLD UNTIL THE CHAIR COMES BACK
[inaudible]
ABOUT THIS.
THE CHAIRMAN IS.
VERY VERY INTERESTED IN THIS
PARTICULAR BILL HOTLY AS AS
EVERYONE ELSE IS IN THIS ROOM.
TO WHAT WE JUST TAKE A RECESS ON
THIS PARTICULAR ITEM AFFECT AND
WITHIN WHEN THE CHAIRMAN COMES
BACK.
AND WE CAN ALL --
ASKED MORE QUESTIONS AND FIND
OUT WHAT KIND OF AMENDMENTS
THERE MAY OR MAY NOT BE HOW'S
THAT THING CARE ARE AYE.
MOTION FOR THE CONSENT CALENDAR.
MISTER PORTANTINO THANK YOU
[inaudible]
THIS KALRA.
CONSENT CALENDAR IS DUE PASSED
TO APPROPRIATIONS.
SENATOR BREAUX UP BRADFORD.
BY ACCU AYE BIDAK AYE GAINES
GALGIANI.
WESO LARA PORTANTINO
[inaudible]
PORTANTINO I THERE WERE IN A
BRIEF RECESS
--
WE'RE BACK FROM RECESS I
APPRECIATE YOUR INDULGENCE I
JUST HAVE TO MAKE A PRESENTATION
TO THE COMMITTEE.
AND I KNOW MISS GONZALEZ
FLETCHER AYE YOU CAN CONTINUE TO
PRESENTATION I BELIEVE ARE SHE
SAID.
OKAY I'M SORRY THAT CLOSING.
OKAY.
I WAS WHAT WHERE WE'RE WAITING
FOR QUESTIONS.
I OKAY YEAH WE'LL COR.
I ANY QUESTIONS BY MEMBERS FOR
MISS GONZALEZ FLETCHER IN REGARD
SURE I'D.
HEARING SEEN --
MS FLETCHER GONZALEZ FLETCHER
WHICH LIKE CLOSE [inaudible]
PARA.
THEY'RE GONNA BE ABOUT HOW YES I
HOUR I THOUGHT SAID I DON'T KNOW
WHAT HAPPENED OKAY.
HOLLOW WERE THERE DO PASSED --
AS A MEANS TO JUDICIARY AYE WE
AGREED ON THE LORENA CAP TO FIVE
THOUSAND DOLLARS.
BUT I THINK THAT'S WHAT WE WERE
HAVING A DISCUSSION WE WERE
HAVING A DISCUSSION ON THAT'S
WHAT THEY RETURN AMENDMENTS AT
IT YEAH I AND SO ORIGINAL WHO IS
IT ITS AT TEN THOUSAND DOLLARS
TO CONGRESS.
AND I I JUST I I KNOW.
SPECULATION ABOUT YOU KNOW WHY
TARAWORK WORKING WITH ARBITRARY
NUMBERS I THINK WE BOTH.
WE WILL SUGGESTED THAT.
AND WHAT I TOLD YOU AND WHAT I'D
LIKE TO SHARE WITH COMMITTEE IS
--
WHEN THIS BILL FIRST CAME UP IN
AND I HAVE MY SENATORS BEEN
WORKING WITH PILOT PROGRAM FOR
YEARS AND I'M I DON'T REALLY
UNDERSTAND DATIN WE'VE BEEN
DOING A LOT ON THE ASSEMBLY SIDE
WITH ALL KINDS OF DIFFERENT
LOANS AND SO?
I LITERALLY WENT INTO MY
COMMUNITY TO TALK TO PEOPLE WHO
ARE GETTING LOANS.
AND WHAT WE FOUND WAS EVEN --
THROUGH THE PILOT PROGRAM IS THE
TWO MAIN THINGS THAT CAME UP FOR
WHITE PEOPLE NEEDED MORE THAN
THE TWENTY FIVE HUNDRED DOLLARS.
WERE FUNERAL BECAUSE AND SIXTEEN
THERE IMMIGRATION PAPERWORK
ESPECIALLY NOW THE FIXING THE
IMMIGRATION PAPERWORK AND THE
COMPLAINT THAT WE HEARD WAS THAT
BY.
WITH TWENTY FIVE HUNDRED EVEN IF
YOU KNOW YOU QUALIFY FOR TWENTY
FIVE IT'S HARD TO QUALIFY YOU
QUALIFY BECAUSE YOU'RE WORKING
HARD YOUR EAR BY.
THE INCOME --
TO DEBT RATIO IS GOOD AND THEN
THEY HAVE TO GO SEEK A DIFFERENT
LOAN TO MAKE UP THE DIFFERENCE
WHICH COULD SOMETIMES BECAUSE IT
ATTRACTS COURT.
COULD.
BE HUNDRED AND 30%.
LOAN -- SO
WE WANTED TO GET TO A POINT
WHERE PEOPLE COULD PAY FOR
UNEXPECTED FUNERALS.
AND IMMIGRATION PAPERWORK AND
ALTHOUGH FIVE THOUSAND IS BETTER
THAN TWENTY FIVE HUNDRED I WAS
HOPEFUL THAT WE COULD DO THAT
THE AVERAGE COST OF A FUNERAL
WAS EIGHT THOUSAND DOLLARS AND
I'M THE AVERAGE COST OF
IMMIGRATION PAPERWORK I TO APPLY
FOR CITIZENSHIP IS ABOUT.
SIX THOUSAND IF YOU'RE FIGHTING
A DEPORTATION ORDER IT GOES UP
TO ABOUT NINE THOUSAND DOLLARS
SO WE HAD TALKED A LITTLE I WAS
HOPING TO GET IT INTO THAT RANGE
--
AND I UNDERSTAND THAT AGAIN I'M
TRYING NOT TO WORK WITH AN
ARBITRARY NUMBER TEN THOUSAND
BUT BRING IT TO RANGE THAT
ACTUALLY HELPS THE FOLKS WHO.
ARE RESPONSIBLE I'M APPLYING FOR
THESE LOANS BECAUSE THEY HAVE A
REAL IMMEDIATE NEED AND AND CAN
NOT HAVE TO DO --
PIECEMEAL THE LOANS WITH A
DIFFERENT ONE THAT'S AT SO I WAS
HOPING AS A COUNTER OFFER.
I NEVER DOUGLAS PUBLICLY THIS
IS.
THAT MAYBE WE COULD ADD UP. TO
EIGHT THOUSAND DOLLARS
[inaudible]
THAT.
BUT YOU DO IT SO YOU'RE ASKING
THIS BUT DEBATE GONNA.
PASS OR A LITTLE BIT MORE BUT
THAT'S BECAUSE I'M GONNA GO
SHARE BUT I TAKES LEADING BABY
AND HOW. SEVENTY FIVE HUNDRED AS
A SENSE OF SPLITTING HAVE
SEVENTY FIVE UNDER.
PAR WE WILL MEND IT --
THE CAP TO SEVENTY FIVE HUNDRED
POUNDS EACH ON YEAR.
PERSUADING US PUSH SWAY SILVA
TESTIMONY THERE.
AND WE SEEK A MOTION THAT WE DO
SO YOU'LL TAKE THOSE AMENDS IN
APPROPRIATIONS INCORRECT.
WHERE THIS AND YOU DO SOME SORRY
AND YIDDISH?
HE'S BEEN MOST IS BEEN MOVED AS
AMENDED TO TAKE THOSE AMENDMENTS
--
RAISING THE CAP TO SEVENTY FIVE
HUNDRED AND JUDICIARY.
HOW IT'S BEEN MOVED BY SENATOR
HUESO MADAM SECRETARY PLEASE
CALL THE ROLL?
ASSEMBLY BILL TWO THIRTY SEVEN
MOTION IS DO PASS WITH
AMENDMENTS TO BE TAKEN IN
JUDICIARY SENATOR BRADFORD BY.
I BIDAK Y. FIGHT ACT AYE GAINES
GALGIANI WESO.
Y. SO I LARA PORTANTINO
[inaudible]
PORTANTINO I FULLER.
IF FOUR VOTES YOUR BILL IS OUT
THANK YOU.
EXACTLY GREAT NEGOTIATIONS
[inaudible]
THANK YOU --
IT.
IN INTEREST OF TIME SINCE WHO
STILL HAVE A BODY HERE WHAT WE
TAKE MOTION ON OUR CONSENT
CALENDAR WE HAVE TWO ITEMS ON
CONSENT.
ELECTIONS ARE REASONABLE WHICH
ARE BEEN MADE ALRIGHT OKAY.
ALRIGHT GOOD.
YES -- OUT
SO WE ON CONSENT WE HAVE A
MOTION WE HAVE TWO ITEMS AB.
TWENTY EIGHT SIXTY TWO AND A. B.
THIRTY TWO TWENTY NINE AMOUNTS
SECRETARY PLEASE CALL THE ROLL
ON THE CONSENT CALENDAR.
MOTION IS DUE PASSED TO
APPROPRIATIONS CONSENT CALENDAR
SENATOR BRADFORD BY BRADFORD
AYE.
GAINES GALGIANI WESO.
BY WEST SO I LARA [inaudible]
FULLER.
CONSENT CALENDARS OUT WILL LEAVE
THE ROLE OPEN FOR THOSE ABSENT
MEMBERS CHAT ON OKAY EXACTLY SO.
WE HAVE A NUMBER OF OUTSTANDING
ON YOU ARE HER THAT WE'RE JUST
THE MOTION WILL START FIRST WITH
ITEM.
ONE A. B. THIRTY EIGHT BY
ASSEMBLYMAN STONE IT'S A DO PASS
AS AMENDED TO APPROPRIATIONS
WERE SEEKING A MOTION.
IT'S BEEN MOVED BY SENATOR
PORTANTINO MADAM SECRETARY
PLEASE CALL THE ROLL.
ASSEMBLY BILL THIRTY EIGHT
MOTION IS TO PASS AS AMENDED TO
APPROPRIATIONS SENATOR BRADFORD
HIGH.
I VITA NO BIDAK NO GAINES
[inaudible]
GALGIANI.
NUMBER.
ONE THIRTY EIGHT AB.
THIRTY EIGHT WESO.
LESS SO I LARA PORTANTINO
[inaudible]
PORTANTINO I THREE TWO ONE THREE
ONE WILL LEAVE IT OPEN FOR
ABSENT MEMBERS TO ADD ON NEXUS
ITEM THREE A. B.. THREE FIVE
FOUR BY ASSEMBLYMAN CALDERON.
THERE'S NO RECOMMENDATION THERE
DO PASS AS AMENDED AS
APPROPRIATIONS.
BEEN MOVED BY.
MISTER HUESO MADAM SECRETARY
PLEASE CALL THE ROLL ASSEMBLY
BILL THREE FIFTY FOUR MOTION IS
DO PASS AS AMENDED TO
APPROPRIATIONS SENATOR BRADFORD.
NOW BONE [inaudible]
FIGHT BACK [inaudible]
GAINES [inaudible]
GALGIANI [inaudible]
HUESO.
HUESO AYE LARA [inaudible]
PORTANTINO [inaudible]
IF. TO TO AYE OKAY.
BELIEVE THAT OPEN STILL LACKING
ENOUGH PASSAGE NEXUS ITEM FOR
AB.
TWENTY SIXTY THREE BY.
AGUILAR CURRY IT'S TO PASS TO
APPROPRIATIONS.
SHE CAN A MOTION ON THAT.
IT'S BEEN MOVED BY SENATOR
PORTANTINO MEN SECRETARY PLEASE
CALL THE ROLL.
ASSEMBLY BILL TWENTY SIXTY THREE
MOTION IS DO PASS TO
APPROPRIATIONS SENATOR BRADFORD
AYE BRADFORD AYE FIGHT ACT BY
BIDAK AYE.
GAINES [inaudible]
GALGIANI [inaudible]
GAINES I GALGIANI WESO.
BOB WAS SO I LARA PORTANTINO
[inaudible]
PORTANTINO I OKAY THAT'S FIVE
ONE THAT'S OUT WILL LEAVE THE
ROLE OPEN FOR ABSENT MEMBERS.
NEXUS ITEM SIX AB TWENTY EIGHT
EIGHTY FOUR BY ASSEMBLYMAN IRWIN
DO FAST WITH AMENDMENTS TO BE
TAKEN IN BUSINESS AND
PROFESSIONALS.
OR SEEKING A MOTION ON THAT AS
WELL [inaudible]
MOST.
THANK YOU SENATOR HUESOS MOST BY
SENATOR HUESO MEN SECRETARY
PLEASE CALL THE ROLL.
ASSEMBLY BILL TWENTY EIGHT
EIGHTY FOUR MOTION IS TO PASS
WITH AMENDMENTS TO BE TAKEN IN
BUSINESS AND PROFESSIONS.
SENATOR BRADFORD ARE BRADFORD I
FIGHT ACT BY PRODUCT AYE GAINES.
GAINES AYE GALGIANI.
WESO.
HUESO AYE LARA [inaudible]
PORTANTINO [inaudible]
PORTANTINO I IF YOU.
DELIVER WHAT.
CHEMICAL GETS WHO BECAUSE AS
SENATOR GALGIANI PLEASE.
KALRA AGAIN YURI --
WE WERE JUST ON IT.
TWENTY EIGHT PAID FOR BY SOMEONE
WOMAN IRWIN.
SENATOR GALGIANI AYE WHIPS.
OKAY THAT'S ABOUT.
SIX WILLIE RURAL OPEN FOR ABSENT
MEMBERS NERI NEXT SPACE IS THE
V..
I MEAN I FIFTY THREE ITEM SEVEN
BY AS SOON LOW MOAN I THINK OUR
VOTE COUNTERS.
TWO ONE IN CALL ABSENT MEMBERS.
ASSEMBLY BILL TWENTY NINE FIFTY
THREE MOTION IS DO PASS AS
AMENDED TO APPROPRIATIONS
SENATOR GAINES.
GAINES NO GALGIANI [inaudible]
LESS SO [inaudible]
LARA [inaudible]
WHO GETS TO TO TO OKAY --
TO TO ON AND OUR FINAL AYE AYE
DOME -- IS
A. B. THREE TENETS --
SEEKING A MOTION TO PASS AND MEN
AS WELL AS AMENDED TO JUDICIARY.
IT WERE LACKING.
WE WILL.
WAIT A FEW MINUTES AND NINE TO
LACK OF EMOTION THAT ITEM MIGHT.
ASK YES FOR RECONSIDERATION
OFFENSE.
THE PLEASURE OF THE BODY OR THE
AUTHOR.
WILL HOLD OUTLINED.
FOR USUALLY SHE GETS
RECONSIDERATION. SIX ARE.
YEAH.
YEAH JUST WE STILL OUTSTANDING
VOTES WILL WAIT FOR THOSE
MEMBERS ARE COMING OUT ON YES A
LOT OF SENATOR GAINES OUT ON AND
WE'LL JUST CALL THOSE OPEN ITEM
STILL OUTSTANDING ITEMS.
START WITH OUR ITEM ONE A. B..
THIRTY EIGHT BY CINNAMON STONE.
OUR CURRENT VOTE COUNTERS
[inaudible] THREE ONE TO PASS
AS A MEMBER AMENDED TO
APPROPRIATIONS.
ASSEMBLY BILL THIRTY EIGHT
MOTION IS TO PASS AS AMENDED TO
APPROPRIATIONS SENATOR GAINES
[inaudible]
GAINES NO [inaudible]
GALGIANI.
GALGIANI AYE LARA [inaudible]
AND SCORE. ONE FOR ONE ASSEMBLY
BILL TWO THIRTY SEVEN MOTION IS
TO PASS WITH AMENDMENTS TO BE
TAKEN IN JUDICIARY SENATOR
GAINES.
SENATOR GAINES AYE.
GALGIANI
.
SENATOR GALGIANI I SENATOR LARA
[inaudible]
SWISS [inaudible]
AND HIS.
OKAY THAT LISTS HAVE SIX VOTES
WILL.
WAIT FOR ABSENT MEMBERS TO
RETURN ITEM.
THREE ASSEMBLY BILL THREE FIFTY
FOUR MOTION IS DO PASS AS
AMENDED TO APPROPRIATIONS --
SENATOR GAINES [inaudible]
NO [inaudible]
GAINES NO [inaudible]
SENATOR VIDAK.
SHE IS TO BELIEVED TO HIS AREA.
VOTED NO OKAY.
SENATOR GAINES I'M SORRY SENATOR
GALGIANI.
SENATOR GALGIANI I SENATOR LARA
[inaudible]
I'D.
ASSEMBLY BILL THREE FIFTY FOR
MOTION AS DO PASS AS AMENDED TO
APPROPRIATIONS [inaudible]
I HAVE.
SENATOR LARA BY THEM AND HAS.
WHERE DID?
TO LET FORTY TWO OKAY THAT DEB
MOTIONS OUT.
NEXT IS I'M --
FOR AB. TWENTY SIX TO THIRTY
ASSEMBLY BILL TWENTY SIXTY THREE
MOTION IS DUE PASSED TO
APPROPRIATIONS [inaudible]
SENATOR GALGIANI.
GALGIANI AYE SENATOR LARA.
I WOULD HAVE.
SEVEN THAT MORE BILLS OUT THAT
ITEMS CLOSED NEXUS ITEMFI --
A. B. OF THAT'S CONCERNED I'M
SORRY.
ONYX'S OUR ITEM SIX AB.
TWENTY EIGHT EIGHTY FOUR
ASSEMBLY BILL TWENTY EIGHT
EIGHTY FOUR MOTION IS TO PASS
WITH AMENDMENTS TO BE TAKEN AND
BUSINESS AND PROFESSIONS.
SENATOR LARA I'M.
LARA I WOULD HAVE SAID.
THAT SETS SEVEN VOTES.
ANNEXES ITEM --
SVEN TWENTY NINE FIFTY THREE
ASSEMBLY BILL TWENTY NINE FIFTY
THREE MOTION IS TO PASS AS
AMENDED TO APPROPRIATIONS
[inaudible]
SENATOR GALGIANI [inaudible] FOR
SENATOR WESO [inaudible]
SENATOR LARA.
LARA I REALLY.
IS [inaudible] THREE IT
[inaudible]
BROUGH [inaudible]
TO OKAY [inaudible]
AND WE WE EVERYBODY ON CONSENT.
CONSENT CALENDAR MOTION IS DUE
PASSED TO APPROPRIATIONS CONSENT
CALENDAR.
SENATOR GAINES.
GAINES AYE GALGIANI.
GALGIANI AYE LARA.
LARA AYE [inaudible] SEVEN OKAY
AND A. B. TH THIRTY TEN LOCK THE
MOTION SO WE'RE GOING TO GRANT
OFF THE RECONSIDERATION OF THAT
WHICH EXISTS YES SO.
RECONSIDERATION GRANITE.
THERE I AND THE SECOND CLUE
EVERYTHING OTHER THAN ARE ABSENT
MEMBERS [inaudible]
SEC.
A LOT AND IT'S ALL OKAY XEON
OKAY LET'S MAKE SERVICE CENTER
LARA.
BANDS ON THOSE OUTSTANDING
ITEMS.
IS ITEM ONE AND I A. B..
THIRTY EIGHT ASSEMBLY BILL
THIRTY EIGHT MOTION IS TO PASS
AS AMENDED TO APPROPRIATIONS
SENATOR LARA [inaudible]
LARA I IT HAS FIVE WE KNOW.
IDENTIFIED BY THE TO THE MOTIONS
UP I'M HEARING THEM ITEMS OUT.
AND NEXT ITEM TO A. B.. TWO
THREE SEVEN ASSEMBLY BILL TWO
THIRTY SEVEN MOTION IS TO PASS
WITH AMENDMENTS TO BE TAKEN IN
JUDICIARY SENATOR LARA.
LARA AYE [inaudible] SEVEN THOSE
WAS WORSE WHEN ASSEMBLY.
BAKER WE PROJECT.
HER WAIST WAS GONNA
[inaudible]
INFOPRINT [inaudible]
THEY ARE [inaudible]
YEAH [inaudible]
YEAH.
MUCH OF WHICH IS.
WHAT IS YOUR HUESO
[inaudible]
OKAY
SEVEN TWENTY NINE FIFTY
THREE WERE JUST WAITING TO SEE
IF SENATOR HUESO WILL BE
RETURNED TO CAST A VOTE FOR THAT
WILL LEAVE THE ROAD OPEN.
FOR A FEW MORE MINUTES ALLOWING
HIM TO EITHER ADDITIONAL
WE'RE
GONNA CLOSE OUT ITEM SEVEN
TWENTY NINE FIFTY THREE AND THAT
MOTION --
MEASURE DIES WITH THE THREE TWO
TO COUNT --
THE AUTHOR IS BEING GRANTED TO
RECONSIDERATION.
FOR BOTH.
AB TWENTY NINE FIFTY THREE AND
A. B. --
THIRTY TEN AND THAT CONCLUDES
BANKING AND FINANCIAL
INSTITUTIONS HEARING FOR THE DAY
WE STAND ADJOURNED THANK YOU