WELCOME TO TODAY'S HEARING --
WE ARE GOING TO REVIEW BUDGET
PROPOSALS --
FOR THE GOVERNOR'S OFFICE OF
BUSINESS AND ECONOMIC
DEVELOPMENT THE STATE
COMPTROLLER IN THE DEPARTMENT OF
BUSINESS OVERSIGHT.
SO WILL TAKE UP THE FIRST ORDER
OF BUSINESS IS THE VOTE ONLY --
AND I THINK WERE PULLING OUT
ISSUE TO TO HAVE A SEPARATE.
VOTE ON SO ON THE VOTE ONLY
WE'RE DOING ISSUE.
ONE ISSUE THREE ISSUE FOR
TOGETHER.
AND THEN WE WILL SEPARATELY TAKE
UP ZERO ISSUED.
TO OKAY SO IS THAT OKAY SENATOR
NIELSEN OKAY.
SO OF THAT BEING THE CASE --
WOULD ANYBODY LIKE TO PROVIDE
PUBLIC COMMENT ON ANY OF THIS.
ON ANY OF THESE ISSUES OKAY
HEARING NONE.
OF THERE A MOTION TO MOVE THESE
ITEMS.
OKAY.
OF PLEASE CALL THE ROLL.
SENATOR RUSSELL YES SIR NIELSEN
CENTER ON BIRD [inaudible]
OKAY [inaudible]
GREAT --
HOLDEN.
OKAY GO AHEAD WE'RE GONNA HOLD
THE ROLE OPEN ALL MOVED TO FEED.
ALL.
OKAY.
SO -- MOTION --
FOR ISSUE [inaudible]
TO TO OKAY. THREE NINE WE HAVE
THE ROLE.
SERRA DOURADA YES SIR NIELSEN
CENTERED ON BURKE [inaudible]
OKAY.
THANK YOU.
A LITTLE BIT [inaudible]
OKAY.
SO LET'S MOVE ON FOR THE ISSUES
PROPOSED FOR DISCUSSION AND VOTE --
ISSUE NUMBER.
FIVE UNDER GOBIZ.
WE HAVE THE DEPARTMENT PRESENT
PLEASE [inaudible]
GOOD MORNING [inaudible]
WELL
.
PLEASE GOOD MORNING.
THE GOVERNOR'S OFFICE OF
BUSINESS AND ECONOMIC
DEVELOPMENT GOBIZ SERVES AS THE
STATE OF CALIFORNIA IS A LEADER
FOR JOB GROWTH.
AND ECONOMIC DEVELOPMENT EFFORTS.
GO WAS OFFERS A RANGE OF
SERVICES TO BUSINESS OWNERS.
INCLUDING ATTRACTION.
RETENTION AND EXPANSION SERVICES
SITE SELECTION.
PERMIT ASSISTANCE REGULATORY
GUIDANCE SMALL BUSINESS
ASSISTANCE INTERNATIONAL TRADE
DEVELOPMENT AND ASSISTANCE WITH
GOVERNMENT. FOR THE CURRENT
FISCAL YEAR GOBIZ HAS A TOTAL OF
EIGHTY SEVEN POINT THREE
AUTHORIZED POSITIONS.
AND SIXTY ONE POINT FIVE MILLION
IN FUNDING OF THE SIXTY ONE
POINT FIVE MILLION. TWENTY FIVE
POINT EIGHT MILLION ISN'T
SPECIAL GO IS HAS VARIOUS.
PROGRAMS WITHIN THE DEPARTMENT
WE HAVE THE CALIFORNIA COMPETES
TAX CREDIT.
PROGRAM.
THE ISSUE TAX CREDIT THE THE
THEIR INCOME TAX CREDITS
AVAILABLE TO BUSINESSES.
THAT WANT TO GROW CALIFORNIA OR
RELOCATE TO CALIFORNIA TAX
AGREEMENTS ARE NEGOTIATED BY
GOBIZ.
AND APPROVED BY A STATUTORILY
CREATED COMMITTEE.
ANOTHER ONE OF OUR PROGRAMS IS
THE CALIFORNIA BUSINESS
INVESTMENT SERVICE.
THEY PROVIDE NO FEED TAILORED
SITE SELECTION SERVICES ECONOMIC
AND DEMOGRAPHIC DATA AND
INFORMATION ON VARIOUS INCENTIVE
PROGRAMS TO BUSINESSES.
THE OFFICE IS SMALL BUSINESS
ADVOCATE PROVIDES INFORMATION
AND ASSISTANCE TO SMALL
BUSINESSES IN CALIFORNIA SO THAT
THEY CAN SUCCEED IN THE
CALIFORNIA MARKET PLACE.
THE CALIFORNIA INFRASTRUCTURE.
AND ECONOMIC DEVELOPMENT BEING
FINANCES PUBLIC INFRASTRUCTURE
AND PRIVATE DEVELOPMENT THE
PROMOTE A HEALTHY CLIMATE.
FOR JOBS CONTRIBUTING TO A
STRONG ECONOMY AND PROVING THE
QUALITY OF LIFE.
IN THE CALIFORNIA FILM
COMMISSION ENHANCES CALIFORNIA'S
STATUS AS A LEADER IN MOTION
PICTURE TELEVISION AND
COMMERCIAL PRODUCTION
[inaudible]
THANK YOU --
WE SHOULD TO ISSUE.
OKAY SO WE NOW MOVE TO ISSUE
FIVE OKAY OKAY PLEASE.
ISSUE FIVE IS OUR LCAL.
ECONOMIC DEVELOPMENT LIAISON
IT'S TIED TO SB.
SIX THIRTY FIVE YEAH SURE OKAY.
A GOOD MORNING MEMBERS MY NAME
IS MORRELL FIRST SEE --
SB SIX THIRTY FIVE WAS PASSED
LAST YEAR ESTABLISHING LIAISON
SERVICES FOR PROMISED SONS AN
OPPORTUNITY ZONES IN CALIFORNIA.
THERE ARE TWO MAIN ACTIVITIES
THAT WERE MANDATED UNDER THIS
LAW FIRST --
GO BUSINESS REQUIRED TO DEVELOP
INFORMATIONAL MATERIALS AND
DIGITAL CONTENT ABOUT LOCATION
BASS AND OTHER GEOGRAPHICALLY
TARGETED ECONOMIC DEVELOPMENT
PROGRAMS.
AND AND NEXT GO BUSINESS LEVINE
A STAKEHOLDER MEETING BOTH OF
STATE WIDE --
STAKEHOLDERS FEDERAL
STAKEHOLDERS AND LOCAL SO THE
WAY THAT WE ARE ATTEMPTING TO
OPERATIONALIZE THIS LAW IS BY --
HIRING ONE A STAFF PERSON TO BE
TO PROVIDE --
BOTH SERVICES TO LOCAL ENTITIES
INCLUDING MUNICIPALITIES CITIES --
CHAMBERS ECONOMIC DEVELOPMENT
ORGANIZATIONS WHOMEVER HAS THOSE
QUESTIONS ABOUT TOOLS THAT ARE
AVAILABLE TO THEM AND THEN ALSO
PROVIDING INFORMATION TO
INVESTORS PRIMARILY THROUGH OUR
BUSINESS INVESTMENT SERVICES
UNIT -- THE
OPPORTUNITIES OWNS A PROMISE ON
OUR FOR US WE SEE THEM AS OF A
TOOL IS A PART OF THE ENTIRETY
OF THE GOAL BIZ --
TOOLS THAT WE HAVE THAT ARE
AVAILABLE FOR INVESTMENT IN OUR
STATE [inaudible]
OKAY -- OKAY
WE HAVE FINANCE [inaudible]
NO [inaudible]
HELLO.
THE LEGISLATIVE ANALYST'S OFFICE
AND WE HAVE A CONCERN.
OKAY JUST A COUPLE OF QUESTIONS
AND THEN SENATOR --
IS COULD YOU DESCRIBE FOR ME THE
DIFFERENCES BETWEEN THE
OPPORTUNITIES OWNS AND THE
PROMISE OWN OF COURSE SO THE
OPPORTUNITY ZONES ARE A
FEDERALLY DESIGNATED CENSUS
TRACKS.
THIS CAME ABOUT THROUGH THE THE
TAX.
LAW THAT WAS PASSED BY THE
FEDERAL GOVERNMENT AND TWENTY
SEVENTEEN THE STATE'S WERE
RESPONSIBLE FOR NOMINATING THE
CENSUS TRACKS AND THE FEDS
APPROVED IN CALIFORNIA WE HAVE
EIGHT HUNDRED AND SEVENTY NINE
OF THEM.
THEY ARE AREAS THAT QUALIFIED A
BECAUSE A VERY YES --
THERE IS VERY ISN'T A DEBIT
HELLO MEDIAN IN MEDIAN INCOMES
ARE PRIMARILY LOW INCOME AND
BLIGHTED COMMUNITIES.
THE OPPORTUNITIES ON OUR TAX
PROGRAM ESSENTIALLY WHERE THERE
IS A EITHER A DEFERRAL OF TAX.
TAXES ON CAPITAL GAINS A
DEDUCTION OR A COMPLETE
EXEMPTION OF THOSE TAX GAINES.
THE PROMISE ON THEY'RE ACTUALLY
VERY DIFFERENT PROGRAM THERE ARE
FOUR OF THOSE IN CALIFORNIA AND
THEIR LARGE COMMUNITIES.
OF I BELIEVE THE COMMUNITIES ARE
SAN DIEGO SOUTH LA LOS ANGELES.
AND SACRAMENTO AND THESE ARE
COMMUNITIES WHERE THERE ARE
GROUPS OF NON PROFITS COMMUNITY
ORGANIZATIONS THAT COME TOGETHER
AND THEY ARE --
THEY ARE OFFERED CERTAIN
BENEFITS FROM THE FEDERAL
GOVERNMENT --
AND INCLUDING --
LIKE --
SORRY --
THEY GET LIKE FIVE AMERICORPS
FEDERAL AT LEAST A FEDERAL
LIAISON TO GET ACCESS TO FEDERAL
PROGRAMS.
VERY IS A PREFERENCE POINTS AS
FOR FEDERAL PROGRAMS AND FUNDING
AND SO IT'S SORT OF A
COORDINATED WAY TO HELP BOOST UP
COMMUNITIES BUT FROM A MUCH
LARGER SCALE.
SO THERE ARE DIFFERENT PROGRAMS
BUT THEY'RE SORT OF AIMED AT THE
SAME THING BRINGING UP AND
HELPING COMMUNITIES THAT ARE
LOWER INCOME ARE A BLIGHTED OR
DISTRESSED.
SO HOW DO YOU SEE THEM WORKING
TOGETHER OR THE COORDINATED OR
WHAT WHAT'S THE RELATIONSHIP.
BECAUSE YOU KNOW THAT'S CREATED
BY HAVING BOTH OF THOSE PROGRAMS
I THINK THE ESPECIALLY IF.
THERE MUST BE SOME AREAS THAT
OVERLAP THAT ARE BOTH
OPPORTUNITIES OWN AND AMAZON AND
THEN THERE'S AREAS THAT ONLY
HAVE ONE OR THE OTHER CORRECT SO.
MAYBE YOU CAN SEE.
EXPLAIN THAT.
I THINK THAT'S A GREAT QUESTION --
I'M NOT I'M NOT ABLE TO DISCERN
WHY THE LEGISLATION WAS WRITTEN
AS IT WAS I CERTAINLY THINK
THERE'S A CONNECTION OPPORTUNITY
FOR COMMUNITIES TO WORK TOGETHER
I THINK WHERE THERE ARE PROMISE
ZONES AND WHERE THEY'RE POP
PROMISE ON THAT OP AND
COMMUNITIES ARE ALREADY WORKING.
ON UP LIFTING UP OF PROVIDING
THE SERVICES.
I THINK OP INVESTORS THAT ARE
LOOKING --
TO GET THE BENEFITS OF TO THOSE
COMMUNITIES SAY OH WOW THERE'S
ALREADY DEVELOPMENT HAPPENING
HERE THERE MIGHT BE A MORE
OPPORTUNITY FOR ME TO SET UP
BASE IN THIS AREA BUT OF COURSE
THERE'S A KIND OF ACTIVITY
AROUND THE STATE --
VARIOUS COMMUNITIES THAT ARE
BUILDING UP FOR EXAMPLE ON THE
HIGH SPEED RAIL AND THE CENTRAL
VALLEY --
DOES THE STATION AREAS ARE AREAS
WHERE INVESTORS MIGHT LOOK AT SO
THEY ARE NOT RELATED BUT HEY
ARE PROGRAMS THAT ARE AS THE LAW
CALLS IT --
GEOGRAPHICALLY TARGETED ECONOMIC
DEVELOPMENT EFFORTS OF WHICH
THERE ARE OTHERS AS WELL SO AND
DO BOTH HAVE THESE TAX DEFERRALS
TAX INCENTIVES NO THAT'S ONLY TO
THE OPPORTUNITIES OWN PROGRAM.
OKAY.
SO NOT THE NOT THE PROMISE OF
CORRECT.
OKAY.
OKAY --
ANOTHER --
ONE WITH REGARD TO THE
OPPORTUNITY ZONES.
ISSUES HAVE BEEN RAISED ABOUT
HOW IT MIGHT FURTHER INCENTIVIZE
GENTRIFICATION.
DO YOU HAVE ANY [inaudible]
FROM.
ADVICE ON THAT OR DO YOU HAVE
ANY.
RESPONSE TO THAT OR IS A WAY TO
GET A RESPONSE TO THAT.
SITE I CERTAINLY THINK THAT --
THAT THAT IS AN ISSUE THAT HAS
COME UP A LOT --
WE ARE EXCITED TO GET THIS STAFF
PERSON TO HELP --
REALLY LOOK INTO THOSE ISSUES
AND HOW THEY MIGHT BE MITIGATED
AND WE THINK THAT THE WAY TO
MITIGATE A LOT OF THOSE ISSUES
IS TRUTH THROUGH LOCAL PLANNING.
AND THAT IS PART OF OUR INTO TO
MAKE SURE THAT LOCALS HAVE
SUPPORT.
IN HOW THEY'RE IMPLEMENTING
THESE PROGRAMS AND SO UP LOCAL
PLANNING LAWS ARE GOING TO MAKE
A HUGE DIFFERENCE [inaudible]
PREVENT GENTRIFICATION BUT OF
COURSE THIS IS ALL VERY NEW AND
TO BE TOTALLY FAIR THE FEDERAL
REGULATIONS ARE ON THIS AREN'T
EVEN FINALIZED YET.
SO THOSE MAY CHANGE AND AND THIS
IS AN ISSUE THAT'S COME UP A LOT
BOTH WITHIN OUR STATE AND
FEDERALLY SO IT'S A FAIR
QUESTION.
OKAY.
SENATORS ANY QUESTIONS COMMENTS
FROM THE TOUR NOW THEN OR DO.
IN THE MOVIE THEY HAD SET UP
CRITERIA.
THE NATURE OF THESE [inaudible]
DOLLARS.
WHAT ARE YOUR CRITERIA HOW YOU
OF FORMULATING THAT CRITERIA?
CENTER NIELSEN IF I'M
UNDERSTANDING YOUR QUESTION
CORRECTLY --
YOU'RE ASKING HOW WE ARE GOING
TO DETERMINE HOW TO STAFF THIS
POSITION WE'RE ONLY ASKING FOR
ONE STAFF PERSON TO REALLY HELP
US.
DO THESE TWO MAIN THINGS ONE TO
HELP SUPPORT THE LOCALS FOR ANY
QUESTIONS THEY HAVE WE MAY
DEVELOP TOOL KITS WE READY TO
PROVIDE INFORMATION ON OUR
WEBSITE.
AND THEN TO TO ENSURE THAT
INVESTORS THAT COME TO US AND
THEY WANT TO KNOW ABOUT WHERE
THERE MIGHT BE SITES AVAILABLE
IN AN OPPORTUNITIES OWN WE CAN
DIRECT THEM TO THOSE SITES
THROUGH OUR SITE SELECTION
SERVICES --
WE HAVE A HUGE NETWORK OF
PLANNERS CITY MANAGERS --
ECONOMIC DEVELOPMENT
ORGANIZATIONS THAT WE CAN TAP
INTO AND AND SAY HEY WE HAVE AN
INVESTOR THAT'S LOOKING TO
INVEST IN AN OPPORTUNITY SO DO
YOU HAVE SITES AVAILABLE.
SO THAT'S WHAT WE'RE DOING FOR
NOW BUT THIS IS AN AREA THAT I
THINK BOTH STATEWIDE AND
NATIONALLY --
PEOPLE ARE LOOKING AT IT IT'S
GOING TO BE CHANGING THERE WILL
BE LAWS AROUND IT THERE'S A LOT
OF BILLS ON IT THIS YEAR SO.
MORE TO BE SEEN IN OTHER WORDS
IT'S A PROACTIVE NOT HAVE BEEN
NINE SLOT.
YOU JUST DON'T ANSWER QUESTIONS
THAT COME INCOME BUT YOU'RE
GOING TO PROVIDE --
FOR FOR INFORMATION OUT.
OKAY YES.
AND YEAH AND THIS WORK IS
REQUIRED BY SB SIX THIRTY FIVE
YESCENTER OKAY SO IT'S TO FILL
THAT REQUIREMENT.
THAT IS.
OKAY GREAT.
OKAY.
QUESTION.
NO OKAY --
PUBLIC COMMENT.
ON THIS.
YOU EXPERTS ON OPPORTUNITIES OLD.
OUR PROMISE HOLDS OKAY --
GREAT THANK YOU VERY MUCH --
TAKE THE ROLE.
SERRA DOURADA YES THERE NIELSEN.
CENTER ON BIRTH.
AND WE'RE GONNA GO BACK.
TO THE TWO PREVIOUS --
VOTE.
OKAY SO WE WENT [inaudible]
VOTED TWICE.
WHEN WAS FOR ISSUE ONE THREE AND?
FOUR HELLO I'M SORRY OKAY.
OKAY WE'RE GONNA DO A GO BACK TO
ISSUE ONE THREE AND FOUR WE DID
THOSE TOGETHER.
THE CENTER I'M BURKE BY
[inaudible]
OKAY.
FINAL ON THAT AND THEN WE DID
ISSUE TOO AS A SEPARATE OF BOTH.
CENTER I'M BURKE HI.
OKAY SO GIRLS CLOTHES ON THE
OKAY [inaudible] SIX OKAY.
OKAY VOTE ON THIS WILL BE THE
YES OKAY SO LET'S GO TO ISSUE
SIX IN THE STATE COMPTROLLER'S
OFFICE PLEASE.
THE DESCRIPTION.
GREAT.
GOOD MORNING MORNING.
MORNING MADAM CHAIR MEMBERS MY
NAME IS JENNIFER URBAN NINE THE
CHIEF OF BUDGETS AND CONTRACTS
WITH THE STATE COMPTROLLER'S
OFFICE.
WE THANK YOU FOR THE OPPORTUNITY
DISCUSS THE SCO'S NINETEEN
TWENTY BUDGET CHANGE PROPOSALS
WHICH REPRESENT SCO FUNCTIONS
THAT THE CONTROLLER.
HAS FOUND ARE IN NEED OF
SUFFICIENT RESOURCES TO SUPPORT
SERVICES PROVIDED TO STATE AND
LOCAL GOVERNMENTS AND TAXPAYERS.
CURRENTLY THE SCO WAS RESOURCE
WITH OVER FOURTEEN HUNDRED
POSITIONS IN TWO HUNDRED AND
THIRTY FOUR POINT SEVEN MILLION
DOLLARS. 31% OF OUR BUDGET IS
SUPPORTED BY THE GENERAL FUND.
27% BY REIMBURSEMENTS AND 42% IS
MADE UP OF SPECIAL FUNDS OF
WHICH 19% IS THE UNCLAIMED
PROPERTY FUND.
AS A CENTRAL SERVICE AGENCY THE
SCO PROVIDES CORE SERVICES SUCH
AS ACCOUNTING AUDITING PAYROLL
AND THE DISBURSEMENT OF STATE
FUNDS TO STATE AND LOCAL
AGENCIES.
WE ALSO MINISTER THE UNCLAIMED
PROPERTY PROGRAM WITH THE
PRIMARY GOAL TO SAFEGUARD
PROPERTY UNTIL ALL CLAIMED BY
THE RIGHTFUL OWNER.
THE FIRST ITEM BEFORE YOU IS
ISSUE SIX SECURE UPGRADE AN ACA
REPORTING SYSTEM.
THIS PROPOSAL INCLUDES RESOURCES
FOR TWO PURPOSES.
THE FIRST IS RELATED TO
UPGRADING AT THE SECURITY SYSTEM
SCO LOCATIONS.
THIS YEAR MAINTAINED MAINTAINS
FIVE SEPARATE PHYSICAL LOCATIONS
AND ADMINISTERS THE COMPUTER
COORDINATED UNIVERSAL RETRIEVAL
ENTRY OR SECURE.
SECURITY SYSTEM.
AND IT HAS SOFTWARE SUPPORT.
THEREFORE AS HE WAS REQUESTING
SIX HUNDRED EIGHTY FIVE THOUSAND
DOLLARS IN.
NINETEEN TWENTY AND THIRTY
THOUSAND í
SUPPORT THE CURRENT SECURE.
SYSTEM TO ENSURE THE
CONTINUATION OF PHYSICAL
SECURITY IN ALL SCO LOCATION.
THE SECOND PURPOSE IS RELATED TO
INCREASED WORKLOAD FOR
DEVELOPING THE AFFORDABLE CARE
ACT OR ACA REPORTING SYSTEM.
AS HE WAS RESPONSIBLE FOR
REPORTING ACA INFORMATION TO THE
STATE OR FOR THE STATE OF
CALIFORNIA.
INCLUDING CORRECTED TEN NINETY
FIVE C. DATA RECORDS TO THE IRS
AND CORRECTED TEN NINETY FIVE C..
OF PAPER FORMS TO IMPACTED STATE
EMPLOYEES.
CURRENTLY AS YOUR HAS FOR
LIMITED TERM RESOURCES THROUGH.
TWENTY ONE TWENTY TWO AND NINE
PERMANENT POSITIONS DEDICATED TO
THIS WORK.
EVER AS REPORT EVERY YEAR IRS IS
CHANGING THE REPORTING
REQUIREMENTS FORMAT AND DATA
FIELDS.
ADDITIONALLY ANY ITEMS THAT ARE
REJECTED IN THE INITIAL FILING
SUCH AS THE SOCIAL SECURITY NOT --
MATCHING THE PERSON BEING
IDENTIFIED.
A CORRECT A REPORT NEEDS TO BE
PREPARED.
I REST IS ALSO CHANGING THE
REQUIREMENTS FOR THE RIVER --
CORRECTED REPORTS IN THEREFORE
AN ADDITIONAL POSITION IS BEING
REQUESTED TO SUPPORT THE
UNANTICIPATED PROGRAMMING
CHANGES THAT ARE REQUIRED FOR
THE ACA REPORTING SYSTEM.
AND WE'RE HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE --
WE HAVE PERMITTED FINANCE.
AIR COVER DEPARTMENT OF FINANCE
WE HAVE NO ADDITIONAL COMMENTS
THIS TIME.
THANK YOU ELLERY HELLO.
AND ONLY THE LA --
WE HAVE.
THANK YOU COLLEAGUES.
SEPTEMBER --
IF I UNDERSTAND CORRECTLY THIS
IS BOTH PHYSICAL AS WELL AS
CYBER SECURITY IS THAT RIGHT.
AND THIS IS REGARDING DIGITAL
SECURITY WHICH IS IN COMPLIANCE
WITH OUR CYBERSECURITY
REQUIREMENTS.
OKAY SO IT.
THEN.
I'M I'M WRONG IT DOESN'T INCLUDE
CYBERSECURITY THAT'S CORRECT
OKAY. FOR THE QUESTIONS
[inaudible]
SIR NIELSEN.
OKAY PUBLIC COMMENT.
VERY NOT THOSE OF THE
RECOMMENDATION IS TO APPROVE
THIS PROPOSAL AS BUDGET OUR
MOTION.
OKAY PLEASE CALL THE ROLL.
CENTER DORADO YES CENTER NIELSEN.
CENTER OF BURKE [inaudible]
GREAT --
ISSUE.
SEVEN OKAY.
AS HE WAS REQUESTING PERMIT
RESOURCES TO CONTINUE PERFORMING
AUDITS OF HOLDERS TO ENSURE
COMPLIANCE WITH THE CALIFORNIA
UNCLAIMED PROPERTY LOSS.
WHICH RESULT IN INCREASED
UNCLAIMED PROPERTY TO BE
REUNITED WITH ITS RIGHTFUL OWNER.
THREE YEAR LIMITED TERM
POSITIONS TO PERFORM AUDITS OF
NON COMPLIANT HOLDERS.
THE ELEVEN LIMITED TERM
POSITIONS IF NOT APPROVED OF
THIS REQUEST WILL EXPIRE --
ON JUNE THIRTIETH OF THIS YEAR.
SINCE FOURTEEN FIFTEEN THE SCO
HAS BEEN APPROVED CONTINUATION
OF THE SAME RESOURCES AS LIMITED
TERM.
THROUGH THESE AUDITS SCO HAS
IDENTIFIED AN ANNUAL AVERAGE OF
TWO HIGH OF TWENTY MILLION
DOLLARS AND RECORDABLE PROPERTY.
OVER THE LAST FIVE YEARS IN THE
SAME TIME PERIOD THE AVERAGE
COMPLIANCE RATE IS ABOUT 2%.
THIS WORK WHAT IS ONGOING AND A
PROPERLY SUPPORTED WITH
PERMANENT RESOURCES TO ENSURE.
HOLDERS CONTINUE TO REPORT AND
REMIT.
THE RESOURCES WILL ALSO ASSIST
HOLDERS AND CREATING UNCLAIMED
PROPERTY POLICIES AND PROCEDURES
FOR IDENTIFYING AND REPORTING OF
PROPERTY IN SUBSEQUENT YEARS
[inaudible]
OKAY -- LA --
YES BEFORE I GIVE OUR COMMENTS
ON THIS PROPOSAL LET ME JUST
START WITH A LITTLE BIT OF
DESCRIPTION TO MAKE SURE WE'RE
ALL ON THE SAME PAGE.
THIS PROGRAM WORKS.
SO CALIFORNIA WROTE LAW REQUIRES
BUSINESSES LIKE THINGS ARE
INSURANCE COMPANIES TO REPORT
ANNUALLY TO THE STATE JEWELERS
OFFICE.
ABOUT PROPERTY THAT'S CONSIDERED
A BAND THEN BY OWNERS.
GENERALLY IN THIS CASE MEANS
CASH SO LIKE ON CASH CHECKS OR
GARMENT BAG --
TAKE TEMPORARY TITLE IN THIS
PROPERTY IF NEITHER THE BUSINESS
NOR THE STATE IS ABLE TO REUNITE
THE PERSON WITH THEIR PROPERTY.
AND THEN MAINTAIN AN INDEFINITE
LIABILITY TO ONE THEY REUNITE.
WITH THEIR PROPERTY.
WE DON'T HAVE ANY CONCERNS WITH --
THE COMPTROLLER'S OFFICE IS
PROPOSAL SAID WE WOULD KNOW THAT
THE AUDIT.
THEIR PROPOSE WHAT YOU'RE ABOUT
YOU KNOW A COUPLE DOZEN A YEAR
OR NOT GOING TO BE ABLE TO MATCH
THE VAST UNDER COMPLIANCE RATE
IN THIS AREA RIGHT.
SO HUNDREDS OF THOUSANDS OF
CALIFORNIA BUSINESSES ARE LIKELY
NOT COMPLYING WITH THAT STOCK.
SO TO THAT END WE RELEASED A
REPORT LAST WEEK LOOKING INTO
JUST A BIGGER PICTURE
[inaudible]
INCREASED COMPLIANCE.
A LOT.
WE HAVE --
BUT FORGET THERE.
ARE THERE ARE ESSENTIALLY TWO
REASONS THAT BUSINESSES TEND TO
BE OUT OF COMPLIANCE.
THE FIRST IS THE BUSINESSES ARE
SIMPLY UNAWARE OF THE LAW.
AND THEN THE SECOND IS THAT
BUSINESSES SOMETIMES ARE
WILLFULLY NON COMPLIANT BECAUSE
THERE'S A RELATIVELY HIGH
INTEREST PENALTY ASSOCIATED WITH
A FAILURE TO COMPLY.
IT'S 12% PER YEAR FOR PASSED YOU
PROPERTY SO IF BUSINESSES HAVE
PROPERTY THIS DECADES OLD
THEY'RE PROBABLY NOT GOING TO
WANT TO REPORT AND GO TO THIS
AND WE HAVE.
TO THE SUGGESTIONS THAT THE
LEGISLATURE CREDIT DOCTOR TO
MORE BROADLY ADDRESS THIS
PROBLEM OF NON COMPLIANCE.
THE FIRST ONE TO ADDRESS THE
PROBLEM OF ON AWARENESS A LOT
WOULD BE TO HAVE BUSINESSES
REPORT.
ANNUALLY FOR TAX FILING STAFF TV
THIS WOULDN'T HAVE ANY TAX.
PLEASE SIGNIFICANTLY INCREASE
BUSINESSES AWARENESS OF A LOT
THE SECOND OUT APPROACH WOULD BE
TO PROVIDE A TEMPORARY AMNESTY
PERIOD FOR HIS FOR BUSINESSES
THAT COME FORWARD AND
VOLUNTARILY.
ESSENTIALLY TO WAVE AT 12%
ANNUAL I DON'T SEE FOR THE
PROPERTY.
THIS WOULD ON BOTH YOU KNOW
PROVIDE INCENTIVES FOR
BUSINESSES TO COME FORTH AND IN
THE FOURTH.
AND THEN ALSO PREVENT ANYTHING.
ANYTHING FUND DO FINANCIAL
BURDEN IS ASSOCIATED WITH COMING
INTO COMPLIANCE WITH THE LAW
[inaudible]
I'M JUST
YOU KNOW OBVIOUSLY LEGISLATURE
COULD TAKE EITHER OF THESE
ACTIONS TOGETHER I'M SORRY
INDIVIDUALLY BUT THEY WOULD BE
MOST EFFECTIVE IF THEY WERE
TAKEN TOGETHER BECAUSE THEY
WOULD.
ADDRESS BOTH THE PROBLEM ON
AWARENESS OF LAW AND ALSO OF
WILLFUL NON COMPLIANCE.
I'M CLEARLY THE PRIMARY REASON
FOR ADOPTING THIS WOULD BE TO
REUNITE MORE MONEY MORE MONEY
WITH PEOPLE WHO ARE RIGHTFULLY
BELONGS.
TO BUT I WOULD ALSO NOTE THAT
THERE WOULD BE SOME GENERAL FUND
BENEFIT ASSOCIATED WITH THIS
BECAUSE MONEY THAT IS NOT
REUNITED ITH --
WITH ITS RIGHTFUL OWNERS IS --
DOES PROVIDE A GENERAL FUND
REVENUE SOURCES SO THAT COULD BE
IN THE HUNDREDS OF MILLIONS OF
DOLLARS.
JUST A QUESTION ON THAT.
DO YOU HAVE ANY SENSE OF OF BY
DOING BY IMPLEMENTING BOTH OF
THOSE --
BOTH OF THOSE IDEAS.
THE RESOURCES THAT IT WOULD TAKE.
AND WHAT IT.
YOU KNOW WHAT IT REALLY BALANCE
OUT WILL WITH IT --
SO -- I
CAN'T ANSWER SORT OF
SPECIFICALLY.
BECAUSE IT REALLY DEPENDS ON HOW
EFFECTIVE BOTH OF THESE MARIN
CITY BUT JUST A LITTLE BIT OF
CONTEXT SO.
THE STATE DID ADOPTED TEMPORARY
AMNESTY VERY ONCE IN THE PAST --
IT WAS IN THE EARLY ON THIS
PROGRAM SKEWS FOR I THINK.
AND THE COMPTROLLER'S OFFICE AT
THE TIME ESTIMATED THAT IT
BROUGHT IN ABOUT AN ADDITIONAL
TWO HUNDRED MILLION DOLLARS.
SO THAT WAS JUST JUST ON THE ON
THE AMNESTY PERIOD NOT ALSO --
DOING THIS MECHANISM OF HAVING
THIS REPORT TO FTP SO IT
PROBABLY BE EVEN MORE EFFECTIVE
IF IT WAS COUPLE TOGETHER --
IT WOULD REQUIRE SOME IN BOTH OF
THESE OPTIONS WOULD REQUIRE SOME
RESOURCES BOTH FOR F. T. V. TO
YOU KNOW --
ISSUED NEW GUIDANCE TO
BUSINESSES AND WORK WITH THIS IS
IN RESPONSE TO QUESTIONS AND
ALSO FOR SCO --
TO RESPOND TO INCREASE CLAIMS TO
PROCESS MORE ON AS IT COMES IN
BUT IT'S VERY VERY LIKELY THAT
THE GENERAL FUND BENEFIT WOULD
FAR EXCEED.
YOU HAVE ANY.
SPONSORED COMMONSENSE YEAH SO
FOR THE FIRST ITEM REGARDING THE
BUSINESS TAX FORMS ON THE FACE
WE AGREE I'M THAT THIS SOUNDS
LIKE A GOOD IDEA.
IT CERTAINLY COULDN'T HURT ON
THE COMPLIANCE RATE AND WILL
PROBABLY INCREASE AT IT WOULD BE
A GOOD COMPANION TO OUR CURRENT
OUTRAGE IN COMPLIANCE EFFORTS.
HOWEVER WE REALLY DON'T HAVE A
WAY TO REJECT THE IMPROVED
COMPLIANCE OF THIS YOU KNOW WHAT
THIS WOULD I WITH THIS CHANGE
WOULD MAKE --
AND THAT BEING SAID THE PROPOSAL
WOULD IMPACT LIKE BILLY --
SENT -- ARE
THE OF TO BE AND HARD TO TIONAL.
RESOURCES FOR BOTH OF US --
IF IT IS SOMETHING THAT THE
LEGISLATURE WOULD LIKE --
TO PURSUE THE S. YOU COULD%
CONSULT WITH A TV IN THE COMING
MONTHS AND REPORT BACK AND MAYBE
IN THE FALL --
WHICH WOULD BE WHICH TO COINCIDE
WITH THE TWENTY TWENTY ONE
BUDGET CYCLE.
GREAT.
FINANCE DEPART FINANCE.
AND THE PROPOSAL ON THE
GOVERNOR'S BUDGET SUPPORTS THE
CONTROLLERS ONGOING EFFORTS
TOWARDS ADDRESSING --
HOLDER COMPLIANCE AND WE HAVE NO
POSITION ON THE LA US
RECOMMENDATION AT THIS TIME.
SO YOU DON'T HAVE ANY.
RESPONSE TO THOSE.
WE HAVE NO ADDITIONAL COMMENT
THIS TIME --
OKAY.
THE COMPLIANCE RATE HAS BEEN
VERY LOW. 2% 2% YEAH SO 98%.
OF BUSINESSES AND EMPLOYERS.
THERE ARE HOLDING [inaudible]
MONEY.
RIGHT.
ARE NOT REPORTING IT ARE THEY
NOT REPORTING IT OR THEY'RE NOT --
MAKING EFFORTS.
TO TURN IT OVER TO THE STATE OR
TO THE INDIVIDUAL.
SO MY NAME IS GERRY CLOSER THAN
THE DIVISION CHIEF OF THE
UNCLAIMED PROPERTY PROGRAM AND
REGARDING THAT --
WE BELIEVE THAT --
AS AS MISTER HOLLAND SAID IN
INDICATED DALY OF THAT SOME HOLD
HOLDER SIMPLY AREN'T AWARE OF
THE LAW AND THE REQUIREMENT.
AND THE EQUALLY --
SOME HOLDERS ARE VERY WELL AWARE
OF IT AND ARE NOT INTERESTED IN
FILING IN COMPLYING --
THE 98% ARE --
BASED ON THE TOTAL BUSINESSES IN
CALIFORNIA THE REPORTING TO THE
FRANCHISE TAX BOARD AND WE WOULD
SUBTRACT OUT OF THAT.
HOLDERS THAT WE BELIEVE ARE SELF
EMPLOYED INDIVIDUALS ARE VERY
SMALL BUSINESSES THAT ARE LIKELY
NOT TO HAVE ANYTHING TO REPORT
SO.
THE 98% AS A POTENTIAL SPECTRUM
OF HOLDERS THAT WOULD NEED THAT
ATTEMPTS LEE COULD BE HOLDEN
PROPERTY BUT WE OFTEN DON'T KNOW
AT THIS POINT TIME.
I HAVE HEARD FROM CONSULTANTS
AND REPRESENTS THE HOLDERS THAT
THEY YOU KNOW ARE NOT REALLY
WILLING TO REPORT TO CALIFORNIA
BECAUSE OF A 12% INTEREST RATE --
BUT THERE'SHIGHER PENALTIES AND
OTHER PROGRAMS WITH TAXES SO
THAT'S I WOULD LOOK AT IT AS
SOMEONE NOMINAL PENALTY FOR NON
COMPLIANCE ESPECIALLY THIS
WILLFUL NONCOMPLIANCE.
SO DO YOU GO IF WHEN WE DID THIS
BEFORE THE AMNESTY.
WE DID THIS YEAH I HAVE I WASN'T
HERE THE TIME HAVE SOME GENERAL
BACKGROUND --
I THINK THAT WAS --
IN 200-020-0012 THOUSAND TWO WAS
INTENDED TO BE A ONE YEAR
PROGRAM WAS EXTENDED TO TWO
YEARS.
AND THE NET THAT ARE BROUGHT IN
WAS ABOUT A HUNDRED NINETY SIX
MILLION DOLLARS --
THE PROCEEDS --
SO SO WHAT PERCENTAGE THAT
INCREASE COMPLIANCE WITH IT GO
UP BY. 2% OR TWENTY OUT WE
HAVEN'T --
SOMETIMES WHEN THERE'S A MC
PROGRAMS --
HOLDERS WILL IF THEY DON'T
PARTICIPATE THEN IT ACTUALLY
CREATES AN ENVIRONMENT WHERE
THEY'RE NOT AS INTERESTED IN.
COMPLYING AND WAITED FOR THE
NEXT ONE INTENTIONALLY SO --
BUT THOSE ARE THINGS THAT ARE
REALLY PREMATURE FOR US TO WORK
WE WOULD BE WILLING TO LOOK INTO
THIS IN THE COMING YEAR TO AS AS
JENNIFER SAID.
TO GET BACK TO ANY OTHER THINGS
ON THEM.
YEAH AND I LIKE TO SAY THAT --
YOU KNOW THERE IS NO DOUBT THAT
THE AN AMNESTY PROGRAM WOULD
GENERATE IMPROVED COMPLIANCE --
BUT WE FEEL THAT IT WOULD BE A
ONE TIME COMPLIANCE --
AND BASED ON OUR PAST EXPERIENCE --
AND SO THAT'S WHY THE SCO HAS
INSTEAD FOCUSED ON AND ITS
OUTREACH --
AND THE AUDIT PRESENCE WITHIN
THE HOLDERS --
TO ENSURE THAT WE AT LEAST CAN --
TO ALEX.
QUESTIONS OR COMMENTS
[inaudible]
WILK.
IT SEEMS LIKE IT'S A LITTLE BIT
MORE HERE THOUGH THAT WE'RE EVER
GOING TO ATTAIN MUCH IMPROVEMENT
AND COMPLIANCE --
YOU'RE BASING IT SIMPLY ON
BETTER INFORMATION BUT IF
THEY'RE STILL ALIVE.
THE RELUCTANCE BECAUSE THE 12%
RATE.
HOW ARE WE GONNA GET ILLICIT
ANYMORE --
COMPLIANCE.
IF THE IF THAT'S A PUNITIVE RATE
THEY'RE NOT GONNA WANNA REPORT
AND WHAT WHAT WILL CHANGE JUST
THAT THEY KNOW THAT THERE'S A
PENALTY.
THEY DON'T KNOW NOW SEEMS LIKE
THEY MUST OR THEY WOULD NOT BE
APPREHENSIVE ABOUT THE 12% RATE.
WELL I THINK.
THE THREE PART APPROACH ABOUT
REACHING COMPLIANCE OF EDUCATION
TO THE HOLDERS THAT WE DO IN OR
OUT REACHING CLIENTS IN ALONG
WITH A LOT IT'S WHICH THIS
REQUEST IS FOR TO CONTINUE THAT.
TO TO TO EDUCATE THE HOLDERS.
OF PARTICIPATION ARE SOME VIABLE
THINGS THERE'S ALSO
OPPORTUNITIES FOR REQUEST FOR
INTEREST.
AND WAIVERS FOR REASONABLE
BECAUSE KIND OF BUSINESS COULD
FEDERATION I BELIEVE WITHIN A
ABOUT THAT THAT THAT THAT COULD
HELP YES.
AND I BELIEVE IN THE LAST YEAR
SO JUST A BALLPARK I DON'T HAVE
NUMBERS FOR ME BUT HUNDREDS OF
MILLIONS OF DOLLARS OF INTEREST
AND WAVED BECAUSE A REASONABLE
CAUSE REQUESTS A FRENCH LEAKS
OUT SOMETHING THAT SAYS THAT
ALREADY EXIST YES THAT PRESENT
REALLY EXHAUSTION STATUTE SO
THAT IS.
PART OF THIS I MEAN IT'S PART OF
WHAT ALREADY.
IS AVAILABLE ABSOLUTELY YES.
I WOULD ONLY SUGGEST MADAM CHAIR
THAT WE HAVE A AN ACCURATE
REPORTING OF OF WHAT NUMBERS OF
CONTACTS IN.
THE RETURNS THAT TO THE THEY GOT
THE PEOPLE WHO WERE WILLING TO
THEN COME FORTH WITH.
A COMPLIANCE COME INTO
COMPLIANCE AND GET THAT OF OF OF
2% OF THE KEEP LINGERING IT TO
THE FOR FOR A LOT OF YEARS IT'S
NOT NOT WORTH IT WORTH THE
EFFORT IT WOULD SEEM TO ME.
SO WE NEED TO TRACK IT IN OTHER
WORDS MAYBE IT'S SMALL BUT A
HUNDRED MILLION DOLLARS IS
THAT'S A SIGNIFICANT AMOUNT OF
YOU HAVE TO CLICK JESS'S.
OF TICKET [inaudible]
SMALL --
OKAY THE BILL IS TO SENATOR
UMBERG [inaudible]
I THINK [inaudible]
GOOD.
I JUST WANT TO REMIND US ALL
BECAUSE I I KEEP FORGETTING THAT
THIS IS MONEY.
THIS IS MONEY THAT IS BEING HELD
THE DOES NOT BELONG. TO THE
BUSINESS OR THE IT'S NOT.
SOMETHING NEW THIS BEING TACKED
ON IT IS MONEY THAT THEY ARE
HOLDING THAT WE WANT TO GET TO
THE RIGHTFUL OWNER. FOR THE
STATE -- SO
THIS IS REALLY DIFFERENT FROM
JUST YOU DOING SOMETHING WRONG
STORY WITH PENALIZING.
THIS IS THEY SHOULD BE TURNING
THAT MONEY OVER.
AND THEY SHOULD KNOW THAT.
JUST AS A LOGICAL TO PAY.
THIS CHEQUE WAS NOT CACHED FOR
FOUR HUNDRED DOLLARS IT DOESN'T
BELONG TO ME.
HOW DO I GET IT TO IT THE
RIGHTFUL?
OWNER BECAUSE IT'S NOT MINE.
OKAY -- WE
HAVE A VOTE ON THIS MOTION.
WELL WE CAN HOLD IT OPEN OKAY --
WE WE TOOK A PUBLIC COMMENT OKAY
WE'RE GONNA HOLD IT OPEN.
ALRIGHT BUT BEFORE WE GET BACK
TO THE LEFT THINK ABOUT SOME
KIND OF A MECHANISM THAT WE
TRACK IT.
SPECIFICALLY SO WE CAN KNOW WHAT
PROGRESS WE'RE MAKING THAT'S
YEAH I WE DO HAVE --
WRIST STAFF STATISTICS ON OUR
OUTREACH EFFORTS TO HOLDER SO WE
CAN GET THOSE NUMBERS FORTY ON
LETTERS AND CALLS AND WORKSHOPS
WE DONE WEBINARS AND ONE ON ONE
CONSULTATIONS LOTS OFTHAT WITH
HOLDERS.
GREATLY.
OKAY THANK YOU VERY MUCH THANK
YOU [inaudible]
ISSUE
[inaudible]
EIGHT OKAY.
HIS AROUND OF DEPARTMENT OF
FINANCE. FOR IBM WE TALK ABOUT
THE TRAILER BILL LANGUAGE FOR
THE PROM PAYMENT ACT I WOULD
LIKE TO ACTUALLY EXPLAIN WHAT IT
IS THANK YOU SO THE PROMPT
PAYMENT ACT REQUIRES STATE
AGENCIES TO PAY VENDORS OR
INDIVIDUALS WITHIN FORTY FIVE
DAYS.
OF THE RECEIPT OF A VALID
INVOICE.
SO STATE AGENCIES ARE REQUIRED
TO WELL THEY HAVE THIRTY DAYS TO
SUBMIT A CLAIM TO THE
CONTROLLERS FOR PAYMENT --
ALSO WITHIN THE FORTY FIVE DAYS
AND IF THEY DON'T THEN THEY ARE --
SUBJECT TO THE PENALTIES THAT
ARE DEFINED IN THE ACT.
AND THEN THE CONTROLLER HAS
FIFTEEN DAYS AFTER THE RECEIPT
OF THE CLAIM. TO PAY THAT TO PAY
THE CLAIM WITHIN THE SAME FORTY
FIVE DAYS OR BE SUBJECT TO
PENALTIES THAT ARE DEFINED IN
THE ACT.
SO THE TRAILER BILL LANGUAGE IS
GOING CAL.
AS ANOTHER ENTITY THAT IS
RESPONSIBLE FOR THE APPLICABLE
PENALTIES IF THE SYSTEM CAUSES
ANY KIND OF PAYMENT DELAYS.
SO WHOEVER IS RESPONSIBLE FOR
THE DELAY IN PAYMENT SHOULD BE
RESPONSIBLE FOR THE PENALTIES
[inaudible]
OKAY -- WHAT?
DOES THE LA --
HAVE ANY COMMENTS ON THIS
[inaudible]
YOUR COMMENTS.
OKAY -- I'M
QUESTION.
THE CONTROLLER I RECENTLY
RECENTLY SAID A SENT A LETTER --
EXPRESSING CONCERNS REGARDING
FISCAL IMPLEMENTATION.
SO HOW DOES THAT RELATE TO THE
CONCERNS.
GOOD MORNING SENATORS MY NAME'S
GEORGE LOIS I'M THE CHIEF
OPERATING OFFICER AT THE
COMPTROLLER'S OFFICE.
THE CONTROLLERS LETTER.
WAS BASICALLY JUST TO RAISE
AWARENESS --
AS WITH ANY LARGE COMPLEX I KEEP
PROJECT ISSUES COME UP WHEN
FUNCTIONALITY IS IMPLEMENTED.
AND THESE ISSUES REQUIRE SOME
TYPE OF STABILIZATION WORK TO
OCCUR IN ORDER TO CORRECT THEM.
AND ALL THE CONTROLLER IS AYING
HERE IS THAT THE SHE FULLY
SUPPORTS THE PROJECT.
BUT ONCE STABILIZATION EFFORTS
TO TAKE PRIORITY OVER THE
SCHEDULE --
IN ORDER TO GET A DIFFERENT
PROJECT DOES THAT NOT
PRIORITIZING STABILIZATION
CREATES RISK.
AND RISKS WOULD BE.
THE POSSIBILITY OF INACCURATE
REPORTING.
AND THE LATE PRODUCTION OF
AUDITED FINANCIAL STATEMENTS AND
HENCE THAT'S WHY SHE SENT A
LETTER SHE JUST WANTS MORE
AWARENESS OUT THERE THAT SHE
EVEN THOUGH SHE WAS VERY
SUPPORTIVE OF THE PROJECT SHE
WANTS THE PROJECT.
TO FOCUS ON STABILIZING EFFORTS.
VERSES THE SCHEDULE NOT HAVING
TO SCHEDULE BE THE MOST
IMPORTANT THING BUT STABILIZING
THE FUNCTIONALITY THAT'S ALREADY
BEEN IMPLEMENTED.
SO WHAT DOES THAT MEAN STABILIZE
IN AS FAR AS THE CONTROLLERS
CONCERN SO THERE'S A COUPLE OF
ISSUES WITH THE SALUTE
FUNCTIONALITY THAT WAS RELEASED
IN OCTOBER WHICH INCLUDES A
LARGE A GOOD PART OF THE
CONTROLLERS CONTROL FUNCTIONS --
THERE ARE INTERFACES THAT --
INTERFACE DATA TRANSACTION DATA
BETWEEN OUR LEGACY SYSTEM AND
FOR SCALE.
WHEN IT WAS FIRST IMPLEMENTED
THERE WERE PROBLEMS WITH THE
INTERFACES?
AND THAT CAUSED A LOT OF
TRANSACTIONS TO BE STUCK IN
SUSPENSE.
AND THE DEPARTMENTS ARE
STRUGGLING TO GET THOSE ITEMS
OUT OF SUSPENSE SO.
WHERE WERE SAYING THAT WHEN WE
NEED TO HELP THESE DEPARTMENTS
FIGURE THAT OUT AND GET THIS
DONE SO THAT THE INFORMATION CAN
FLOW INTO OUR LEGACY SYSTEM
BECAUSE OUR LEGACY SYSTEM?
IS STILL THE BOOK A RECORD IT
HAS TO GET INTO OUR LEGACY
SYSTEM FOR US TO DO THE
REPORTING ACCURATELY.
US THAT'S ONE EXAMPLE IS A LOT
OF STRUGGLING THERE ARE TRAINING
ISSUES THAT I THINK EVERYBODY'S
AWARE OF THE DEPARTMENTS NEED
SOME ADDITIONAL TRAINING AND
ACTUALLY TO BE HONEST EVEN OUR
STAFF NEED SOME ADDITIONAL
TRAINING --
SO THAT IS ONE OF THE CONCERNS
AND THEN --
PART RELATED TO THAT IS A
DEPARTMENTS ALSO NEED TRAINING
AND ALSO KNOWING AND FIGURING
OUT HOW TO CLOSE THEIR BOOKS
EVERY MONTH AND CLOSE THEIR
BOOKS AT THE END OF THE YEAR.
SO THEY COULD PROVIDE US WITH
THE FINANCIAL DATA WE NED TO
PUBLISH THE NOT ONLY THE
BUDGETARY LEGAL REPORT BUT ALSO
A COMPREHENSIVE ANNUAL FINANCIAL
REPORT.
WHICH IS AUDITED BY THE STATE
HONOR.
AND WE FEEL THAT THOSE ARE TWO
THINGS THAT REALLY ARE CRITICAL
THAT WE NEED TO TO TO STABILIZE
THE SYSTEM.
AND AND THE TRAINING AT THE
DEPARTMENT SO WE CAN GET THAT
DONE.
UP BECAUSE HAVING LATE
PRODUCTION OF AUDITED FINANCIAL
STATEMENTS.
CONSISTENTLY WILL RAISE SOME
QUESTIONS AND IN WITH THE
INVESTOR COMMUNITY WE WANT TO
AVOID THAT.
SO -- DO YOU
THINK THE FISCAL SYSTEM HAS BEEN
RESPONSIBLE FOR ANY OF THE
DELAYS. TO DATE THE RESULT IN
PENALTIES I DON'T BELIEVE WE'VE
HAD ANY PENALTIES WE HAD HAD
SOME SYSTEM ISSUES ONCE AGAIN
WHEN WE LAUNCHED THE
FUNCTIONALITY BACK IN DECEMBER --
THAT CAUSED A LOT OF VOUCHERS
THAT WHICH ARE THE CLAIMS THAT.
CREATE THE PAYMENT. TO GET STOCK
WE COULD HAVEPOTENTIALLY HAD
SOME PENALTIES BUT STAFF WORKED
A TREMENDOUS AMOUNT OF OVERTIME
BOTH AT THE DEPARTMENTS AT FIRST
GALLON THAT SCO. TO CLEAN UP
THAT PROCESS BUT THAT MADE US
REALIZE THAT YOU KNOW WHAT THERE
ARE POTENTIAL POSSIBILITIES HERE.
THAT WE COULD HAVE LATE PAYMENTS
BECAUSE OF NOT ONLY THE
DEPARTMENTS ARE JUST AS THE BUT
ALSO POTENTIALLY BECAUSE OF THE
SYSTEM.
THE ONE ISSUE IN DECEMBER EVEN
THOUGH IT WAS HUGE WE DID.
I BELIEVE WE AVERTED THE
POSSIBILITY OF PAYMENTS OF PET
OF PENALTIES I HAVEN'T HEARD OF
ANY PENALTIES.
COMING OUT OF THAT BUT THERE WAS
THE POTENTIAL [inaudible]
OKAY [inaudible]
COLLEAGUES.
AT LAST HEARING I ASKED WHAT THE
STATE OF STABILIZATION WAS WITH
RESPECT TO THE VARIOUS UNITS.
ANY REPORT WITH RESPECT TO THE
STATE OF STABILIZATION HOW MANY
UNITS ARE STABILIZED.
I DON'T HAVE THAT INFORMATION
BUT I KNOW THAT THE THAT THE
FISCAL PROJECT IS WORKING
DILIGENTLY TO CREATE A NEW
SCHEDULE AND SOME AFFECT WE'RE
MEETING WITH THEM.
TOMORROW TO DISCUSS THE NEW
SCHEDULE AND WHAT IT LOOKS LIKE
AND WHAT STABILIZATION ACTUALLY
LOOKS LIKE --
FOR BOTH US AND THE DEPARTMENTS
I DON'T HAVE THAT INFORMATION
YET BUT HOPEFULLY BY THE END OF
THE DAY TOMORROW HAVE A LITTLE
BIT MORE INFORMATION OKAY.
AN IN HOUSE STABILIZATION IS
DEFINED BOTH THE STATUS
STABILIZATION AND HOW IT'S THE
FOREIGN VIENEN TRYS TO MAKE OKAY
[inaudible]
YES PLEASE.
YOU PUT A LOT OF WEIGHT ON
TRAINING WHAT.
VISIONS AS CONTROLLERS OFFICE
MADE TO ENHANCE YOUR CURRENT
TRAINING.
THAT'S NOT DISCUSSED HERE SO
WHAT WHAT'S THE PLAN TO IMPROVE
TRAINING SUCH TRAINING IT IS TWO
FOLD THE CONTROLLERS OFF OUR
TRAINING FOR OUR STAFF IS OUR
RESPONSIBILITY THE TRAINING FOR
DEPARTMENT STAFF IS NOT OUR
RESPONSIBILITY AND OUR STAFF
HAVE NEEDED ADDITIONAL TRAINING
IN.
UTILIZING FIRST GAL BECAUSE IT'S
IT'S A NEW SYSTEM FOR THEM --
BUT I BELIEVE DEPARTMENTS ALSO
NEED ADDITIONAL TRAINING AND
UTILIZING FISCAL OUT AND I THINK
THE DEPARTMENTS.
THAT DEAL WITH THE SYSTEM THE
SOME DAY IN AND DAY OUT.
I NEED SOME ADDITIONAL TRAINING
BECAUSE THE SYSTEM.
IS VERY DIFFERENT THAN WHAT
THEY'RE USED TO WORKING WORKING
ON CAL STARS WHICH MOST
DEPARTMENTS WERE --
SOMEBODY WORKING ON CAL STARS
FOR TWENTY YEARS AND NOW YOU'RE
YOU'RE TELLING THEM THEY HAVE TO
USE A PEOPLESOFT PRODUCT WHICH
IS WHAT VIZQUEL IS.
OUR THERE'S A THERE'S A PROBABLY
A HUGE GAP IN KNOWLEDGE AND HOW
TO GET FROM CAL STARS TO PEOPLE
SO OFTEN THEY NEED QUITE A BIT
OF TRAINING. TO TAKE WELL
TOGETHER THAT SAID WHAT HOW ARE
WE GOING ABOUT DOING THIS IS
SOMEONE ASSIGNED THE
RESPONSIBILITY OF DEVELOPING THE
TRAINING REGIMEN AND SCHEDULING
THE TRAININGS AND THEN.
YOU HAVE STAFF THAT ARE NOW
DOING TRAINING AND THEY'RE NOT
DOING THEIR NORMAL JOB HOW ARE
WE COVERING THEIR WORKLOAD AND
THEIR COST AND AND AND ALL THE
WORDS IN THERE HAS GOT TO BE A
TRAINING.
PROTOCOL OR OF A TRAINING
PROGRAM DO YOU HAVE THOSE ARE
THEY BEING USED AT ALL NOW OR IS
THIS SOMETHING BRAND NEW.
I WOULD HAVE TO DEFER TO
DEPARTMENT OF FINANCE ANSWER
THAT QUESTION IT'S NOT SOMETHING
THAT SCO IS INVOLVED TO IN AS
FAR AS TRAINING FOR THE
DEPARTMENT YOU KNOW TO FINANCE.
IT OF HOW THIS IS GOING IT IT
SEEMS SO VERY NEBULOUS.
WE HAVE A PROBLEM THAT I'M NOT
GETTING UNDER TO HANDLE ON HOW
WE ARE DEALING WITH THE PROBLEM.
I'M SINCE WE'VE IMPLEMENTED IN
TWENTY FOURTEEN DEPARTMENT HAVE
A FINANCE HAS.
A DEVELOPED --
TRAINING FOR YEAR END STATEMENTS
ON HOW TO PRODUCE THOSE FROM
PEOPLE SOFT. TO BE DELIVERED IN
A LEGACY FORMAT TO THE
COMPTROLLER'S OFFICE.
SO THE BIGGEST --
ONBOARDING WAS EIGHTEEN AND SO
THAT WAS ABOUT SIXTY PLUS
DEPARTMENTS A TWENTY SEVENTEEN
THERE WAS --
A BIGGER NUMBER BIGGER
DEPARTMENTS SO WE WILL BE
PROVIDING ANOTHER TRAINING FOR
THOSE DEPARTMENTS AS WELL THIS
YEAR.
SO THE ONE TRAINING FOR THE
WHOLE YEAR THEN.
YES.
WELL YOU KNOW THESE ARE LITTLE
MINUTIA BUT YOU KNOW IF WE JUST.
DON'T TAKE SOME HARD ACTION AND
GET SOME KIND CONCRETE RESULTS
REPORTED.
THEN IT WE JUST.
EVERY YEAR WE DO THE SAME THING
AGAIN AND AGAIN.
WHAT WOULD YOU SUGGEST FINANCE
TO GIVE US THE THE BEST ABILITY
HERE IS A COMMITTEE TO TRACK THE
PROGRESS MADE BY THIS TIME NEXT
YEAR?
HOW HOW DO WE?
SAY YOU WE WE CONDUCTED FIFTEEN
TRAININGS AND THE RATIO IS
IMPROVING OR HOW DO WE ACCOUNT.
FOR PROGRESS IN THIS AREA.
GIVE SOME THOUGHT TO THAT AND
GET BACK TO US WOULD YOU PLEASE
[inaudible]
OKAY -- THIS
FOR PUBLIC COMMENT OKAY PUBLIC
COMMENT ON THIS [inaudible]
NO.
QUESTIONS COLLEAGUES SO THE A
RECOMMENDATION IS TO APPROVE THE
PROPOSAL AS A BUDGET WE HAVE A
MOTION [inaudible]
SOME OF OKAY.
THE CODE LOCAL.
SOONER DORADO YES CENTER NIELSEN
CENTER ON BURKE YES.
THANK YOU VERY MUCH.
THIS IS.
THE WORST THING --
WITH A PURPOSE --
I THOUGHT I'D LIKE.
WE HAVE A THREE WHAT WAS THE
MOST IMPORTANT ISSUE WHAT THEY
CARE ABOUT THE NURSES ON SOME.
ALL RIGHT WE HVE THE DEPARTMENT
OF BUSINESS OVERSIGHT WE HAVE
THREE ISSUES HERE.
WELCOME GOOD MORNING GOOD
MORNING.
HI CHAIR WOMAN TO RISE SO AND
MEMBERS ON THAT'S THE BARN HEART --
CHIEF OF FISCAL MANAGEMENT
OFFICE WITH THE DEPARTMENT
BUSINESS OVERSIGHT.
THE DEPARTMENT BUSINESS
OVERSIGHT WAS CREATED ALMOST SIX
YEARS AGO BY THE MERGER OF THE
DEPARTMENT OF CORPORATIONS IN
THE DEPARTMENT FINANCIAL
INSTITUTIONS. FOR STUDENT TO
GROW GOVERNOR'S REORGANIZATION
PLAN NUMBER.
TWO CURRENTLY OUR BUDGET
INCLUDES TWO MILLION AND SIX AND
SIX HUNDRED SIXTY AUTHORIZED
POSITIONS TO SUPPORT.
AND THEN WE USED THE FUNDS THAT
SUPPORT OUR DEPARTMENT ARE THE
STATE CORPORATIONS FUN FINANCIAL
INSTITUTIONS FUN CREDIT UNIONS
ON THE LOCAL AGENCY DEPOSIT
SECURITY.
FIVE THE DEPARTMENT OF BUSINESS
OVERSIGHT PROTECTS CONSUMERS AND
REGULATES A VARIETY OF FINANCIAL
SERVICES.
PRODUCTS AND PROFESSIONALS THE
DEPARTMENT OVERSEES STATE
LICENSED FINANCIAL INSTITUTIONS
INCLUDING BANKS CREDIT UNIONS
MONEY TRANSMITTERS AN ISSUE WAS
A PAYMENT INSTRUMENTS AND
TRAVELERS CHECKS.
ADDITIONALLY THE DEPARTMENT
LICENSES REGULATES.
A VARIETY OF OTHER FINANCIAL
BUSINESSES INCLUDING SECURITY
SECURITIES BROKERS AND DEALERS
INVESTMENT ADVISERS.
PAYDAY AND NON DEPOSITORY OR NON
BANK LENDERS.
ESCROW AGENTS STUDENT LOAN
SERVICERS AND CERTAIN FIDUCIARY.
THE TOP DEPARTMENT REGULATES THE
OFFER AND SALE OF SECURITIES
FRANCHISES AND OFF EXCHANGE
COMMODITIES.
THE DEPARTMENT BUSINESS
OVERSIGHT SERVES CALIFORNIANS.
BY SERVING BY OVERSEEN FINANCIAL
SERVICE PROVIDERS ENFORCING LAWS
AND REGULATIONS PROMOTING FAIR
AND HONEST BUSINESS PRACTICES.
ENHANCING CONSUMER AWARENESS AND
PROTECTING CONSUMERS BY
PREVENTING POTENTIAL MARKET
PLACE RISK FRAUD AND ABUSE.
I'M HERE WITH ME.
IS MOTOR PROGRAM FOR INCREASED
ACCESS TO RESPONSIBLE SMALL
DOLLAR LOANS. SIX THANK YOU.
GOOD MORNING TURNED AROUND SO
AND MEMBERS MY NAME IS MONO
SHAKE I'M THE DEPUTY
COMMISSIONER OVER FINANCIAL
SERVICES OFFICE.
AT THE DEPARTMENT OF BUSINESS
OVERSIGHT.
OUR FIRST REQUEST IS FOR THREE
HUNDRED AND FORTY THOUSAND
DOLLARS.
IN TWO THOUSAND NINETEEN TO
TWENTY AND THREE HUNDRED AND
TWENTY THOUSAND DOLLARS ON GOING
FOR TWO CORPORATION EXAMINER
POSITIONS TO EXAMINE REGISTERED
PILOT.
PROGRAM FINDERS ONCE EVERY
TWENTY FOUR MONTHS.
IN.
TWO THOUSAND NINE ALMOST TWELVE
MILLION SHORT TERM LOANS WERE
MADE UNDER CALIFORNIA TO FOR
DEPOSIT TRANSACTION Là COMMONLY
KNOWN AS THE PAID A LAW.
DURING THAT SAME PERIOD APPROX
ME A HUNDRED AND SIXTY SEVEN
THOUSAND LOANS WERE MADE UNDER
TWENTY FIVE HUNDRED DOLLARS
UNDER THE CALIFORNIA FINANCING
LAW.
THIS DATA SHOW THAT CONSUMERS
WERE TAKING OUT MULTIPLE PAYDAY
TRANSACTIONS AND TAKING OUT AN
AVERAGE OF OVER EIGHT
TRANSACTION.
IN A TWELVE MONTH PERIOD.
THIS INFORMATION SUGGESTED A
DEMAND FOR SMALL DOLLAR LOANS
THERE WERE NOT BEING MET UNDER
THE CALIFORNIA FINANCING LAW.
IN TWO THOUSAND AND TEN TO
ADDRESS THE CALIFORNIA SHORTAGE
OF AFFORDABLE LOANS LEGISLATORS
STAB LIST A PILOT PROGRAM FOR
THE PURPOSES OF INCREASING
AVAILABILITY FOR CREDIT BUILDING
OPPORTUNITIES. TO UNDER BANKED
INDIVIDUALS SEEKING LOW DOLLAR
VALUE LOANS.
CONSUMERS WITH LITTLE TO NO
CREDIT HAVE ACCESS TO REASONABLE
RATES AND MAY NOT HAVE BEEN AN
OPTION OTHERWISE.
GRAHAM LENDERS ARE REQUIRED TO
OFFER APPLICANTSCREDIT
EDUCATION SEMINARS.
AND ARE REQUIRED TO REPORT
BARBERS CREDIT HISTORY TO CREDIT.
TO REPORT BARS CREDIT HISTORY TO
CREDIT AGENCIES.
HOW IT PROGRAM LICENSES ARE
REQUIRED TO BE?
EXAMINED ONCE EVERY TWO YEARS IN
ADDITION PILOT PROGRAM LENDERS
ARE AUTHORIZED TO USE FINDERS.
COMMISSIONER IS REQUIRED TO POST
TO THE DEPARTMENT'S WEBSITE
COMPOSITE REPORT ANNUALLY.
SOME OF THE CHANGES THAT
OCCURRED IN TWO THOUSAND SIXTEEN
IN TWO THOUSAND SEVENTEEN
INCLUDE.
IN TWO THOUSAND SIXTEEN THE
FINDERS ACTIVITIES WERE EXPANDED
TO ALLOW FINDERS ON BEHALF OF
THE PILOT PROGRAM LENDERS TO
DISPERSE LOAN PROCEEDS AND TO
RECEIVE LOAN PAYMENTS FROM BAR
WORSE.
ALSO THE PRO PILOT PROGRAM
LANDERS COULD PAINT INCREASED
COMPENSATION TO FINDERS IN TWO
THOUSAND SEVENTEEN THE SUNSET
DATE OF THE PILOT PROGRAM WAS
EXTENDED TO JANUARY FIRST.
WHICH IS THE CURRENT SENT
JENNIFER'S TWENTY TWENTY THREE
WHICH IS THE CURRENT SUNSET DATE
OF THE PILOT PROGRAM.
IN TWO THOUSAND EIGHTEEN AB TWO
THIRTY SEVEN WAS PASSED.
A TO EXPAND THE PILOT PROGRAM
AND MADE CHANGES TO THE
DEPARTMENT'S ADMINISTRATION OF
THE PROGRAM SPECIFICALLY THE
BILL.
INCREASE THE PILOT PROGRAMS
LICENSING REPORTING REQUIREMENTS
TO INCLUDE SPECIFIC INFORMATION.
FOR EACH FIGHTER WHO SERVICES
WERE USED.
IT INCREASE THE PERMISSIBLE LOAN
AMOUNT FROM TWENTY FIVE HUNDRED
DOLLARS TO SEVENTY FIVE HUNDRED
DOLLARS AND ESTABLISH A DEBT TO
INCOME CAP OF 36%.
OF THE BARS MONTH COME FOR A
LOAN GREATER THAN TWENTY FIVE
HUNDRED DOLLARS.
IT REQUIRED A PILOT PROGRAM
LICENSEES TO PERFORM REASONABLE
BACKGROUND CHECKS OF THEIR
FINDERS IT REQUIRED THE PILOT
PROGRAM LICENSEES TO REDUCE THE
INTEREST RATE TO LOANSMADE TO
BORROWERS.
WHO OBTAIN SUBSEQUENT LOANS AND
MET CERTAIN REQUIREMENTS?
IT ALSO REQUIRES THE DEPARTMENT
TO EXAMINE EACH FINDER.
USE BY THE PILOT PROGRAM
LICENSEES TWENTY FOUR MONTHS.
FINDERS ARE NOT LICENSED BY THE
STATE AND CANNOT PROVIDE ADVICE
OR COUNSELING TO BORROWERS.
FINDERS ARE REQUIRED TO BE
REGISTERED BY THE PILOT.
PARTICIPANTS WITH THE D. BO.
THEY CAN DISTRIBUTE LANDERS
MARKETING MATERIALS PROVIDE
FACTUAL INFORMATION ABOUT LOAN
TERMS AND CONDITIONS. TEN BORROW
SIGNATURES ON DOCUMENTS IN
ADDITION THEY CAN DISPERSE LOAN
PROCEEDS TO A BAR WORK AND
RECEIVE LOAN PAYMENT FROM THE
BORROWER.
IS IMPORTANT FOR THE DEPARTMENT
TO EXAMINE FINDERS TO PROTECT
THE INTERESTS OF CONSUMERS.
THREE EXAMINATION THE DEPARTMENT
WILL EXAMINE THE FINDERS BOOKS
AND RECORDS TO DETERMINE
COMPLIANCE.
EXAMINATION WILL INCLUDE BUT NOT
LIMITED TO THE REVIEW OF
APPLICATION LOAN PROCEEDS
DISBURSEMENTS TIMING OF PAYMENTS
APPLY TO THE BAR WAS ACCOUNT.
ADVERTISEMENT OTHER RECORDS.
CURRENTLY THERE ARE REGULATORY
ISSUES THAT ARISE DURING
EXAMINATION HAVE BEEN RESOLVED
WITH THE LICENSEES DURING THE
COURSE OF EXAMINATION.
WE ARE HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE
[inaudible]
OKAY.
NO I'M TRYING TO TRYING TO
UNDERSTAND THIS WHOLE WEB OF SO
IT'S THE THE LENDER.
HAS A FINDER.
RIGHT THAT LOOKS [inaudible]
FOR BORROWERS.
CAN YOU EXPLAIN THAT BETWEEN
WHAT THESE --
THESE FINDERS ARE AND SO A
FINDER'S SOMEBODY ARE THERE IT
SOUNDS LIKE.
THE PROBABLY A TON OF THEM.
YEAH THEY HAVE INCREASED
SUBSTANTIALLY OVER THE YEARS SO
FINDERS HAVE TO HAVE A PHYSICAL
LOCATION.
THEY ARE REQUIRED --
THE PILOT PROGRAM.
LENDER IS REQUIRED TO REPORT TO
US THE FINDERS SO THEY ARE
REGISTERED WITH US BUT THEY ARE
NOT LICENSED BY US.
AND AND SINCE THERE HAS BEEN AN
INCREASE.
OF PILOT BINDERS AND SO.
IN TWENTY SEVENTEEN EIGHTEEN
THERE IS THIRTY THREE FINDER.
MAIN OFFICES AND FOUR HUNDRED
AND TEN BRANCHES.
IN WHAT YEAR.
THIS IS SEVENTEEN EIGHTEEN OUR
PROJECTION --
FOR EIGHTEEN NINETEEN IS THE
SEVENTY FIVE FINDERS AND FIVE
HUNDRED AND SIXTY ONE LOCATIONS.
WHO WHO ARE?
THE FINDERS SO.
THEY'RE LITERALLY BRICK AND
MORTAR --
BUSINESS SAYS THAT THE ALLIES
THAT THE PILOT PROGRAM LENDERS
HAVE --
COMMISSION TO SOLICIT BUSINESS
FOR THEM SO THEY CAN ADVERTISE
THEY CAN ACCEPT APPLICATIONS
THEY'RE NOT ALLOWED TO DO
CONSULTING OR ADVISING --
THEY ALSO CAN DISTRIBUTE THE
PROCEEDS AS WELL S COLLECT
PAYMENT FOR THE LOAN.
AND THAT WAS INTENDED --
TO INCREASE THE NUMBER OF THIS
SMALL LOANS.
I CAN ONLY ASSUME AYE YEAH BUT
THAT WAS THE IDEA BEHIND IT
CRACKED BECAUSE HE FELT THAT
WHAT JUST THE LARGER LOANS WERE
BEING GIVEN OUT BUT NOT SMALLER
LOAN.
SO UNDER THE CFL LOT UNDER.
TWENTY FIVE LOANS UNDER TWENTY
FIVE HUNDRED DOLLARS ARE HIGHLY
REGULATED AND THE INTEREST RATES
ARE -- I
BELIEVE --
30% WHERE AT I AM --
THE INTEREST RATE IS HIGHER --
AND JUST RECENTLY WE'VE EXPANDED
THE ACTUAL LOAN AMOUNT TO BE
SEVENTY FIVE HUNDRED WITH
CERTAIN CONDITIONS.
AND UP TO SEVENTY FIVE HUNDRED
WHAT'S THE INTEREST RATE.
IF IT'S AND IT'S A IT'S A SPLIT
RATE.
AND SO IT'S A VERY BILL LOAN
RATE.
SO STARTING WITH THE LESSER OF
36% OR THIRTY TWO POINT 75% PLUS
THE PRIME RATE OF THE FOR FOR
THE FIRST THOUSAND DOLLARS.
IT'S IT'S VERY DETAILED IN THE
AND STATURE.
AS FAR AS WHAT THE LOAN RATE IS
SO IT IT IS NOT IF YOU'RE GOING
FROM TWENTY FIVE HUNDRED TO
SEVENTY FIVE HUNDRED THE
INTEREST RATE GOES DOWN OR UP
[inaudible]
AND PEOPLE.
UNDER TWENTY FIVE HUNDRED IT'S
SO WAS A CAP OF THIRTY SIX I
IT'S A SPLIT RATE IT'S A
VARIABLE RATE EXISTENCE IT'S A
LOT MORE --
IT'S DIFFICULT TO EXPLAIN UNLESS
I GO THROUGH THE ACTUAL STATUE
AND GO THROUGH EVERYTHING.
OKAY --
COLLEAGUES QUESTIONS.
NO [inaudible]
THE NUMBER --
THE QUESTION ABOUT THE THE
FINDERS --
DIDN'T DO THE ACTUAL LICENSEES
IN THE FINDERS TO THE SPLIT
COMMISSIONS THEY SPLIT THE
INDUSTRY HOW THE FINDERS
COMPENSATED THERE ARE
ADMINISTRATION FEES TO SO AND
THERE IT'S A NINETY DOLLAR --
IT'S NINETY DOLLARS FOR THE
MINISTRATIONS BE. OH SORRY.
THAT WAS FOR THE CUSTOMERS HE
WANTED TO KNOW.
WHAT IT WAS FOR THE PLANE?
SO IT ACTUALLY JUST INCREASED SO
THE FINDERS CAPPED AT SIXTY FIVE
DOLLARS PER LOAN PLUS TWO
DOLLARS PER PAYMENT RECEIVED BY
THE FINDER.
THAT'S WHAT THE PILOT LENDER
PAYS THE FINDER.
IT IS IS THERE A PENALTY --
IS WHAT I'M GETTING AT IS ARE
THE FINDERS --
INCENTIVIZE BEYOND THE STATUTORY
RATES.
AND IF THEY ARE INCENTIVIZE
MISSION.
IS A PENALTY.
THAT MAKES NO IT'S AUTHORIZED
FOR THEM TO HAVE THIS RIGHT NO
SO SO FOR EXAMPLE LET'S SAY THE
LENDER SAYS. TO A FINDER I WILL.
GIVE YOU IN ADDITION TO THE
STATUTORY AMOUNTS PAID I WILL
ALSO GIVE YOU. 10% OF ANY LOAN.
IF SO.
THAT SOUNDS LIKE THAT'S NOT
AUTHORIZED THE FIRST QUESTION IS
IS THAT AUTHORIZED I THINK YOUR
ANSWER IS NO THE SECOND IS IF
THERE'S A VIOLATION OF THE
FINDER IS ACTUALLY INCENTIVIZE
BEYOND THE STATUTORY FEES.
IS THERE A PENALTY I SUPPOSE THE
THIRD QUESTION IS OKAY THERE IS
A PENALTY WHAT IS THAT PENALTY
SO AND THE THE ISSUE WOULD BE
WITH A PILOT PROGRAM LENDER AND
SO WE WILL HAVE TO REFER THEM TO
ENFORCEMENT IF WE DO SEE
SOMETHING OF THAT NATURE AND IF.
THEY DO NOT CORRECTED THROUGH
THE REGULATORY PRACTICE SO
DEPEND IS DEPENDING ON HOW
EGREGIOUS IT IS AND IF IT'S A
REPEAT VIOLATION WILL DETERMINE
IF.
WE WILL SEND THAT TO ENFORCEMENT
AND THEN ON FOR SPENT INTERNEES
WILL DETERMINE WHAT IS THE
CORRECT PENALTY --
THERE I DON'T BELIEVE THAT --
IN OUR STATUE THERE IS NO
SPECIFIC.
PENALTY PROVIDE ELATION FOR
SOMETHING.
I KNOW IN OUR FORSMAN ATTORNEYS
KID -- ISSUE
PENALTY AND REQUEST --
REQUEST THEM TO REFUND.
THE FEES.
SET UP TO JUST FEEDBACK ON THAT
MY NAME SAID GIL SENIOR DEPUTY
COMMISSIONER CAN BE I'M SORRY
CAN YOU PUSH YOUR THINKING THE
FINDERS ARE NOT INCENTIVIZE BY
THE RATE IN ANY WAY TO FIND USER
INCENTIVIZE BY THE NUMBER OF
LOANS THAT THEY PRODUCE BECAUSE
THAT'S HOW THEY'RE COMPENSATED.
SO IF WE SEE THAT A FINDER'S
ACTUALLY INFLUENCE IN A RATE OR
PARTICIPATE IN A RATE.
INCREASED PER SE THAT FINDERS
BEEN REFERRED TO ENFORCEMENT TO
CARRY OUT THE ACTIONS THAT MONA
JUSTICE JUSTICE JUST SUCK
DISCUSS WITH YOU [inaudible]
OKAY.
IT WOULD SEEM THAT.
IF IF A LENDER WANTS TO LEND AS
MUCH MONEY AS POSSIBLE AS
LEGALLY POSSIBLE THE LENDER MAY
TRY TO INCENTIVIZE THE FINDERS
BY GIVING THEM AN EXTRA.
KICKER FOR LACK OF A BETTER TERM
AND THAT IS A VIOLATION AND IT
IS A VIOLATION SO MY QUESTION IS
OKAY --
YOU'VE TOLD ME THAT THERE ARE
PENALTY THESE ARE ASSUME LOSS OF
LICENSE MIGHT BE.
ONE OF SO IT IS THAT IF THE
PENALTIES BEEN ENFORCED OTHER
WORDS ANYBODY.
ACTUALLY SUFFERED ANY PENALTY IN
LAST TWELVE MONTHS.
I KNOW AS I MENTIONED IN MY
REASON TATIAN THAT WE HAVE
ADDRESSED ALL OF ISSUES FOR
VIOLATIONS FOR THE REGULATORY
PROCESS SO WE HAVE BEEN WORKING
DIRECTLY WITH THE LICENSE IN
RESOLVING THOSE ISSUES.
I'M LIKE I MENTIONED BEFORE IT
IF AT IT'S AN EGREGIOUS
VIOLATION OR IF IT'S A REPEAT
VIOLATION THAT'S SOMETHING THAT
WE WOULD REFER TO INFLUENCE
ANYBODY LOS OUR LICENSE THE LAND
WE HAVEN'T SEEN IT YET.
NO.
OKAY AND AND KEEP IN MIND THAT
WE HAVE NOT EXAMINED THE FINDERS
YEAH.
YOU WORK ON LICENSEES AND YOU'LL
GET TO THE FINDERS --
WE JUST IN IT AND THROUGH AB TWO
THIRTY SEVEN WE ARE REQUIRED TO
EXAMINE THE FINDERS EVERY TWO
YEARS AND THAT'S WHY WE'RE
PASSING THE TWO ADDITIONAL STAFF
TO DO. TO DO THE EXAMINATION
WELL I'M I'M A VOTE I BUT I'M
I'M VERY CURIOUS BECAUSE THIS
DOES SEEM LIKE AN AREA THAT
WOULD BE.
RIFE WITH.
CHALLENGES FRAUD IF IF THIS
QUESTION SO FOR EXAMPLE IF YEAR
THE INTEREST RATE IS HIGHER FOR
SEVENTY FIVE HUNDRED DOLLARS
VERSUS TWENTY FIVE HUNDRED
DOLLARS.
THEN THE LENDER IS GOING TO WANT
TO GET AS MANY SEVENTY FIVE
HUNDRED DOLLAR LOANS IS POSSIBLE.
IN MAY WELL PAY THE FINDERS AN
ADDITIONAL.
KICKER TO FIND.
THOSE WHO WILL BORROW IT A LARGE
AMOUNT OF MONEY SO I I'D BE JUST
CURIOUS SO NEXT TIME WE MEET
MAYBE.
YOU COULD LET ME KNOW SURE.
I'M SORRY FINANCE DEPARTMENTS
[inaudible]
LEO.
WE HAVE REASON.
OKAY WELL THIS IS A VERY
INTERESTING PILOT PROGRAM --
I CAN SEE THAT THE THE LAST OF
CHANGES THAT WERE MADE TO IT.
I HOPE OUR I THINK OUR AIM THAT
SORT OF A DRESS IN OUR OUR
CONCERNS HERE RIGHT.
THE EXAMINATION OF OF THE
FINDERS AND BACKGROUND CHECKS ON
THE FINDERS SO.
OF I HOPE.
THE PILOT PROGRAM WORKS AND
DOESN'T BECOME SOMETHING ELSE
THAT'S JUST ABUSIVE OF
COMMUNITIES OR COMMUNITIES.
WHICH ARE THE ONES THAT NEED IT
THE MOST GETTING THE MOST ABUSED.
OKAY SIR NIELSEN NOT.
OKAY THANK YOU ALL VERY MUCH THE
RECOMMENDATION IS TO APPROVE
THIS PROPOSAL AS BUDGET IN YOUR
MOTION [inaudible]
ROLL.
IT'S IN OUR DORADO YES CENTER
NIELSEN.
SOONER AMBER.
THANK YOU VERY MUCH OKAY.
CALIFORNIA LIST NEXT.
TO ISSUE.
TEN WE HAD.
SOURCE SECOND REQUEST IS TO
ADDRESS THE DEPARTMENTS
CALIFORNIA'S FINEST FINANCING
LAW AMENDMENT PROCESSING.
THE DEPARTMENT IS REQUESTING
THREE HUNDRED AND THIRTY
THOUSAND IN NINETEEN TWENTY AND
THREE HUNDRED ELEVEN THOUSAND ON
GOING FOR TO PERMANENT POSITIONS
TO ENSURE PROMPT PROBLEM.
PROMPT PROCESSING OF LICENSEE
AMENDMENTS TO MAINTAIN UP TO
DATE CALIFORNIA FINANCING LAW
LICENSE LINE TO SEE INFORMATION.
LICENSEE AMENDMENTS ARE REQUIRED
TO CHANGE ADDRESSES NAMES
OFFICERS DIRECTORS BRANCH
MANAGERS OF THE AUDIENCE
SURRENDERS.
AMENDMENT INFORMATION IS POSTED
TO THE DEPARTMENT OF BUSINESS
OVERSIGHT IT'S WEBSITE AND IS
USED BY BORROWERS AND OTHERS TO
COME FROM THE COMPANY THEY WERE
CONTRACTING WITH.
ITS PROPERTY LOSS PROPERLY
LICENSED AND MONA EL SHEIK AGAIN
IS HERE WITH ME.
AND WE'RE HAPPY TO ANSWER ANY
QUESTIONS YOU HAVE --
CAN YOU JUST STEP BACK A LITTLE
BIT FOR FIRMANDO AND DESCRIBE
THE ACTIVITIES IN THE BUSINESSES
THAT ARE REGULATED UNDER
CALIFORNIA FINANCE LAW
[inaudible]
OKAY -- SO
THERE ARE VARIOUS TYPES OF THAT
BUSINESS UNDER THE CALIFORNIA
FINANCING LONG THERE'S SECURED
LOANS UNSECURED LOANS.
CHAU LOANS OF RESIDENTIAL
MORTGAGE LOANS --
THERE'S ALSO BROKERAGE AS WELL
AS THE PACE ADMINISTRATORS --
AND AGAIN THE PILOT PROGRAM
LENDERS AND THE UNDER REGISTERED
FINDERS [inaudible]
OKAY.
I'M JUST CURIOUS OF SAID.
A LOT OF THIS --
AMENDMENTS THAT ARE MADE MMHM.
THIS IS AMENDMENTS ON THE ADMITS
TO LIKE NAME CHANGES.
I MEAN WHAT.
WHY DOES THIS HAPPEN SO MUCH?
SO MANY AMENDMENTS IT SOUNDS
LIKE IT.
YOU ALSO SAID THE ADDRESS
CHANGES --
THE SCREEN IS STRANGE OF THE
CONSTANTLY MOVING AND CHANGING
NAMES WE HAVE ABOUT THIRTY FOUR
HUNDRED LICENSEES WITH
APPROXIMATELY SEVEN THOUSAND
BRANCHES --
IT'S JUST THE ONE OF OUR LARGER
INDUSTRIES THAT WE HAVE AND THE
AMENDMENTS.
ARE WE GET OF APPROXIMATELY TWO
HUNDRED AND THIRTY AMENDMENTS
PER MONTH [inaudible]
SOUNDS KIND.
STRANGE --
OKAY.
PART OWNS [inaudible]
COMMENTS HELLO [inaudible]
COMES COLLEAGUES.
QUESTIONS COMMENTS NO OKAY.
SO -- OUR
RECOMMENDATION IS TO APPROVE
THIS PROPOSAL WE HAVE A MOTION.
MOVE.
SENATOR RUSSELL YES CENTER
NOTHING.
THERE ON BURKE.
THANK YOU. ONE MORE.
OKAY SO.
WE ARE REQUESTING EIGHT HUNDRED
AND FIFTY FOUR THOUSAND AND
NINETEEN TWENTY AND EIGHT
HUNDRED FOUR THOUSAND ON GOING.
THE FIVE PERMANENT CORPORATION
EXAMINER POSITIONS TO CARRY OUT
THE REGULATORY REQUIREMENT TO
EXAMINE CALIFORNIA RESIDENTIAL
MORTGAGE LENDING ACT LICENSEES.
AND CALIFORNIA FINANCING LOT
LICENSEES THAT CONDUCT
RESIDENTIAL MORTGAGE ACTIVITIES.
THESE RESOURCES WILL ENSURE THAT
THE SAM ENTERS TO MEET THE
CALIFORNIA RESIDENTIAL MORTGAGE
LICENSE LANDING Là FORTY EIGHT
MONTHS STATUTORY EXAMINATION
CYCLE.
AND THE CALIFORNIA FINANCING
LAWS SIXTY MONTH EXAMINATION
CYCLE TO MEET THE CONFERENCE OF
STATE BANK SUPERVISORS.
ADDITION STANDARDS HERE WITH ME
IS VICTOR WELLS DEPUTY
COMMISSIONER OF MORTGAGE LENDING
WE'RE HAPPY TO ANSWER ANY
QUESTIONS YOU HAVE [inaudible]
OKAY PLAINTIFFS.
QUESTIONS LA YOU OF COURSE HIS
COLLEAGUES.
JUST -- ONE
QUESTIONS WHAT WHAT WHAT KIND OF
EXAMINATION DO THEY DO.
OF THE MORTGAGE LENDERS.
BASICALLY THEY'RE DOING
COMPLIANCE EXAMS IN THAT ENTAILS
THE INDIVIDUALS ARE MORTGAGE
LOAN ORIGINATORS SO THEY HAVE TO
BE LICENSE AS WELL SO HERE'S
CODES THAT THEY MUST.
DO AS WELL AND THEN THERE'S THE
COMPANIES WHICH ARE LICENSE
EITHER UNDER THE SEA I'M LA LAW
OR TO SEE IF BILL LAW.
SO WE'RE LOOKING AT THE RATES
THAT THEY'RE OFFERING TO
CONSUMERS AND IN ADDITION TO
DOING REGULAR.
I GUESS MORTGAGE LAWS THEY DO
REVERSE MORTGAGES AS WELL WE AS
A CASE OF FORECLOSURE ANYTHING
LIKE THAT WE CAN TO MAKE SURE
THERE'S NO TOOL TRACKING WHICH
MEANS.
WHEN SOMEONE IS REQUESTING TO
HAVE THEIR RATE REDUCE YOU
CANNOT CONTINUE WITH FORECLOSURE
PROCEDURES SO THEY ARE CHECKING
THINGS LIKE THAT AS WELL AS
OTHER DISCLOSURES TO ENSURE?
THAT THE LICENSEES ARE HEARING
TO ALL OF THOSE.
IN DO THEY LET'S SAY THEY
RECEIVE CERTAIN COMPLAINTS THE
CONSUMER AFFAIRS OR WHOMEVER
RECEIVES COMPLAINTS --
DO THEY ACCELERATE THE PROCESS
SAYS HERE EVERY FORTY EIGHT
MONTHS OR SO.
IT DEPENDS WE GET COMPLAINTS WE
HAVE A COMPLAINT --
DEPARTMENT AS WELL TO CONSUMER
SERVICES --
UNIT AND THEN IF THOSE
COMPLAINTS ARE.
SAFE VERY COMPLICATED THEY
FORWARDED TO THE PROGRAM WHICH
WOULD IN THIS CASE BE MY PROGRAM
AND WE WOULD LOOK INTO IT AND IF
IT ENTAILS AS GOING OUT. FOR AN
EARLIER EXAMINATION WE WOULD DO
THAT.
BUT MOST OF THE TIME WE CAN
RESOLVE THOSE ISSUES BY COUNTY
NO ONE AND AGAIN IT WILL BE
NOTED AND WE WOULD LOOK INTO
THOSE AREAS AGAIN CLOSE CLOSER
WE GO BACK OUT.
TO DO THE EXAMINATION IF IT'S
FORTY EIGHT MONTHS OR TWENTY
FOUR WHATEVER THE TIME LINE IS.
BERMAN STANDARD SO LET'S JUST
PICK REVERSE MORTGAGES WHICH IS
AN AREA OF CONCERN --
SO SOMEBODY COMPLAINS ABOUT A
REVERSE MORTGAGE IS THEIR
PERFORMANCE STANDARD.
BY WHICH WE TRIED TO IT HERE IN
TERMS OF RESPONDING TO THE
COMPLAINT.
ANOTHER REASON WE SAY WE TRY TO
GET BACK TO WITHIN THIRTY DAYS
SIXTY DAYS YEAH THERE'S A
STANDARD --
TURN AROUND I BELIEVE THEY SEND
OUT LETTERS ONCE THEY RECEIVE IT
WITHIN TEN DAYS NOTIFYING THE
COMPLAINT AND THAT WE'RE LOOKING
INTO THE COMPLAINT.
AND THEN WE ONCE WE CAN NOTIFY
THE LICENSEE AGAIN IT'S A TEN
DAY TURNAROUND.
WE I DON'T BELIEVE IN THE AND WE
IF IT'S SOMETHING WHERE THEY'RE
COMPLAINING --
SAYS.
LOW PERFORMANCE IN THAT KIND OF
STUFF.
NO WE WOULDN'T GIVE THEM THE END
RESULT BUT WE WOULD LOOK INTO
WHAT AND HOW TO KIND OF EXPEDITE
THE PROCESS.
AND SEE BUT IF IT'S REGARDING
REFUNDS AND THINGS LIKE THAT OR
FRAUD YEAH WE LOOK INTO THOSE
AND WE WILL GET.
GOALS COMPLAINT IT'S A RESPONSE
IF IF TO HUNT BUT WHAT I'M
INTERESTED IN IS NOT SO MUCH.
YOU KNOW THE END PRODUCT BUT
JUST THE PROCESS.
MY CONSTITUENTS AND PROBABLY
OTHERS IS THAT WHEN THERE'S A
COMPLAINT MADE TO A GOVERNMENTAL
AGENCY THEY DON'T HEAR BACK OR
THEY HEAR BACK WE GOT A
COMPLAINT IN THE NUMBER HERE
HAPPENS YEAH.
MY QUESTION IS IS IS THERE A
POLICY A REGULATION THAT SAYS
ONCE A COMPLAINT IS RECEIVED
HEARD WE SAID WITHIN TEN DAYS
THE THE INTERNAL POLICY EVEN
THOUGH THERE IS NOTHING.
WRITTEN IN THE COLD TO SAY SO I
HAVE TO RESPOND IN THIRTY DAYS
NO LONGER INTERNAL POLICY OKAY
SO WHAT WHAT IS THE INTERNAL
POLICY THAT THAT WE WOULD REDUCE
WE REPLY WITHIN TEN DAYS OF
RECEIVING THE RIGHT.
AND THEN IS THERE AN INTERNAL
POLICY IS TO WHEN YOU.
EITHER INFORM THE COMPLAIN THAT
YOU KNOW THERE'S OF UNFOUNDED
ALLEGATION OR SOMETHING LIKE
THAT.
SO IS THERE ANYTHING TO RESOLVE
MY CONCERN.
YEAH THEN I'D PEOPLE COMPLAIN.
THEY MAY GET A LETTER OF INTENT
THEY SAY WE'RE LOOKING INTO IT
AND THEN THEY NEVER HEAR AGAIN
SO.
TYPICALLY WE WOULDN'T NEVER HEAR
FROM AGAIN WHAT WILL TYPICALLY
WOULD HAPPEN WITHIN TEN DAYS
AFTER SENDING THE RESPONSE TO
THE COMPLAINT WE WILL DO A SELF
EVALUATION INTERNALLY WITH THE
LICENSEE AND EVALUATE WHAT THE
CLAIM IS ABOUT.
IF IT WARRANTS A SPECIAL
EXAMINATION.
THEN THE D. B. O. IS AUTHORIZED
TO GO OUT AND DO IT. THIRTY DAYS
TO ONE IN FORTY DAYS SO THERE'S
SO DURING THAT PROCESS THE DPO
IS ACTUALLY EVALUATING WHAT THE
COMPLAINT IS SEEING IF WE CAN
SELL IT BETWEEN THE LICENSEE
OURSELVES OR THE LICENSEE IN THE
COMPLAIN.
SO THERE'S REALLY HARD TO GIVE
YOU A TIME LINE BUT THERE IS
COMMUNICATION THAT TAKES PLACE
BETWEEN THE DPO AND ALL THE
PARTIES INVOLVED.
DURING THAT TIME PERIOD SO.
THEY'RE NOT LEFT OUT IN THE COLD
SAYING HEY WHAT'S GOING ON WITH
MY COMPLAINT OKAY SO BUT BUT
BACK TO MY QUESTION SURE.
IS THERE AN INTERNAL POLICY IS
THERE AN INTERNAL REGULATIONS --
IS STANDARD AS THEIR STANDARD
OPERATING PROCEDURE.
THE THE THE ISSUE I'M TRYING TO
GET AT IS THAT WHAT I HEAR IS.
ONCE SOMEONE MAKES A COMPLAINT
AND I'M NOT SINGLING YOU OUT BUT
SINCE YOU'RE HERE AGAIN THIS THE
QUESTIONS --
ONCE IS A COMPLAINT MADE.
IS THERE SOME BESIDES THE TEN
DAY LETTER IS THERE SOME SORT OF
POLICY THAT SAYS AT THE END OF
THIS INVESTIGATION WHETHER IT
TAKES THIRTY DAYS OR TWO OR
FORTY DAYS.
THAT THERE WILL BE A RESPONSE TO
THE COMPLAINT AS TO WHAT THE
RESULT IS IRRESPECTIVE OF THE
RESULT.
OKAY THAT WOULD BE IT WOULD BE
IDENTIFIED IN THE INITIAL LETTER
STATE THAT ONCE WE RESOLVE THIS
CASE YOU WILL BE NOTIFIED BUT
AGAIN IT'S NOT TIMELINE
SPECIFIED IN HERE.
IS THERE A POLICY THAT SAYS WILL
RESPOND TO FOLKS AT THE END OF
ANY INVESTIGATION.
NOT THAT I'M AWARE OF TOP OF MY
HEAD AND GUARDIAN BECAUSE IF WE
HAVE TO REACH OUT TO THE
LICENSEE AND AGAIN WE DO GIVE
HIM TIME LINES ON THAT.
BUT THEREMAY BE BACK AND FORTH
AFTER RECEIVED THAT INITIAL
RESPONSE WE HAVE TO GET MORE
INFORMATION AND LOOK INTO IT AND
AGAIN IF IT TURNS INTO AN
EXAMINATION NOW WE HAVE.
TO EXAMINATION AND SO THE
PROCESS SO TIGHTLY. TO THEIR
EVEN APOLLO SOMEONE CONSTITUENTS
SAYS TO ME.
I'VE MADE A COMPLAINT.
AND I NEVER HEARD BACK SHOULD MY
RESPONSE BE.
I'M SORRY THERE'S NO STATE
POLICY TOUGH LUCK OR SHOULD I
SAY THERE IS A STATE POLICY THAT
SAYS THE END OF THIS EXAMINATION.
YOU ARE SUPPOSED TO GET SOME
SORT OF RESPONSE THEY KNOW WHAT
WHAT I'M TRYING TO GET IT IS NOT
THE NOT THE PROCESS ITSELF I'M
TRYING TO GET AT BEING
RESPONSIVE. TO CONSTITUENTS THAT
HAVE AN ISSUE.
IF IT TURNS INTO AN EXAMINATION
WE DO HAVE INTERNAL REQUIREMENTS
SO YOUR TURN AROUND TIMES ON
EXAMINATIONS VICTOR AND IF YOU
WANT TO GO THROUGH THAT.
IF IT'S NOT AN ACTUAL.
EXAMINATION THEN WE HAVE A
CUSTOMER SERVICE OFFICE AND I
THINK JIM CAN.
TALK ABOUT.
YEAH I'M JIM SWEENEY AND MANAGE
A CONSUMER SERVICES OFFICE --
CENTER WE HAVE CLEAR --
AND DEFINE METRICS THAT WE HAD
HERE TO FOR THE RECEIPT AND AND
AND LUMINARY HANDLING OF OF
COMPLAINTS --
FOR COMPLAINTS THAT --
GET THE THAT ARE MORE
COMPLICATED THAN THAT PERHAPS WE
HAVE TO HAND OFF TO VICTOR'S
PROGRAM OR SOME OTHER PROGRAM --
YOU KNOW IT'S HE CAN'T REALLY.
IMPOSE A A AT PRE SET TIMELINE
ON THOSE COMPLETE BIG IF YOU
KNOW HOW LONG IT MIGHT TAKE A
PER.
PROCESS A MORE COMPLICATED
COMPLAINT THAT.
YOU MAY END UP --
AGENCY OR AT THE GOVERNOR'S
OFFICE BUT WOULDN'T PAY AND WE
HAVE A CLEAR TIME LINES INTERNAL --
TIME LINES THAT WE WE IT HERE
TOO WE MONITOR THOSE METRICS
MONTHLY WE'D BE HAPPY TO PROVIDE
YOU WITH --
THAT INTERNAL REPORT IF YOU LIKE
TO SEE WERE WERE VERY VERY PROUD
OF THE WORK --
THAT ARE CONSUMER SERVICES
OFFICE DOES --
IS I TELL PEOPLE INTERNALLY.
A REPEATEDLY --
IT'S IT'S ONE OF THE FEW PLACES
WHERE YOU CAN CALL --
ON ANY ANY WORK DAY AND CAN GET
A LIVE BODY ON THE PHONE WITH
ALMOST ALWAYS WITHIN TWO MINUTES
THEIR AVERAGE WAIT TIME IS LESS
THAN TWO MINUTES --
TRY REPLICATING THAT EIGHTEEN T.
OR BANK OF AMERICA OR AND MANY
OTHER PLACES THAT WILL.
BE USEFUL SYSTEM US BUT BUT I'M
NOT.
BEING CLEAR BECAUSE WHAT I'M
FOCUSED ON RIGHT NOW IS THAT.
DOES THAT PERSON IT --
FOR EXAMPLE GET A NOTIFICATION
AT THE END OF A EXAMINATION
INVESTIGATION.
WHATEVER WHATEVER TERM YOU MIGHT
USE THAT WE HAVE LOOKED AT THIS
AND WE HAVE MADE A DETERMINATION
THAT THIS IS.
FILL IN THE BLANK THE ANSWER'S
IN ALL CASES YES ALL RIGHT.
IN.
A GET THAT THE IT COULD BE
THIRTY DAYS IT COULD BE.
IN FORTY DAYS SO IN ALL CASES
AND THAT THAT'S BECAUSE THAT'S
AN INTERNAL POLICY IS THAT
REGULATION IS THAT BY STATUTE
WITH WHAT'S THE I BELIEVE IS AN
INTERNAL POLICY --
IT'S IT'S THESE ARE METRICS THAT
HAVE BEEN REVIEWED --
BY THE COMMISSIONER AND APPROVED
BY THE COMMISSIONER AND THAT WE
HEAR TO INTERNALLY --
HE WENT OUT THERE --
EMBEDDED IN POLICY SO PLACE
POLICY THAT SAYS.
WITH AN EX NUMBER OF DAYS AFTER
THE INQUIRY INVESTIGATION
EXAMINATION IS COMPLETE.
THE COMPLAINT WILL GET A WRITTEN
NOTIFICATION.
OF THE OUTCOME THAT BE GREAT TO
SEE BECAUSE IT BECAUSE THE THE
CONCERN.
THAT I HAVE.
IS WHERE PEOPLE SAY I MADE A
COMPLAINT I NEVER HEAR BACK AS
TO WHAT HAPPENED SO.
THAT WOULD BE GREAT THANKS.
OKAY --
CENTER NIELSEN ANY QUESTIONS NOT.
A PUBLIC COMMENT.
ON THIS.
OKAY.
HEARING NONE THAT THE WE
RECOMMEND APPROVAL OF THIS
PROPOSAL AS BUDGET.
THE MOTION.
HELLO.
OKAY ROLL CALL.
CENTER DORADO YES THE CENTER
NIELSEN CENTER I'M [inaudible]
OKAY.
WE'VE COME TO THE END OF OUR
AGENDA IN OUR MEETING.
YOU.
ALL RIGHT WE'RE GONNA GIVE YOU
NEXT WEEK DOES THAT [inaudible]
USE [inaudible]
THAT
.
THAT YOU SEE.
JUST TO THAT'S WHAT