MR WAY SO HE'S PREPARED I KNOW
WE'RE GOING TO ASK YOU TO START
WITH -- S. B. SIX NINETEEN IF
YOU DON'T MIND AND WILL PROCEED
ONCE WE HAVE A QUORUM ALL.
MISTER CHAIRMAN OF COURSE I
DON'T MIND.
QUITE THE CONTRARY VERY GRATEFUL
TO YOU THANK YOU. FOR THIS
OPPORTUNITY TO HEAR S. B..
SIX WHICH ONE OF MY HEARING
FIRST. SIX ONE NINE PERFECT
THANK YOU.
YES THIS -- THIS BILL -- FIRST
OF ALL FOR THANK YOU.
FOR THE PROPOSED AMENDMENTS --
WE ARE -- TAKING THE AMENDMENTS
PROVIDER PAGE FOUR AND FIVE OF
THE ANALYSIS.
AND THANK YOU FOR THAT -- THIS
IS -- A VERY -- IMPORTANT BILL
BECAUSE IT IT IT IS HELPS PEOPLE
THAT LIVE IN -- PROMISE ZONE
AREA -- PROMISE OWN BEING THE
FEDERAL PROGRAM ESTABLISHED BY --
FORMER PRESIDENT OBAMA. TO
CREATE REINVESTMENT IN
UNDERSERVED AND UNDER INVESTED
COMMUNITIES -- THIS BILL WILL
ALLOW ALLOW THERE TO BE RENT
REPORTING PILOT PROGRAM FOR
PEOPLE.
WHO RAN TO HELP THEM ESTABLISH A
CREDIT RATING -- FOR SOME REASON --
YOU KNOW CREDIT RATINGS ARE ARE
ARE ONLY PROVIDED TO PEOPLE PAY
A MORTGAGE BUT PEOPLE WHO.
WHO DECIDE TO RENT AND PREFER TO
RENT OFTEN TIMES ARE NOT GIVEN
CREDIT FOR THEIR TIMELY PAYMENTS?
AND ALL OUR EFFORTS OR TRY TO
HELP PEOPLE ESTABLISH CREDIT.
A CREDIT IS OFTEN TIMES -- THE
DIFFERENCE BETWEEN -- PEOPLE
BEING ABLE TO FINANCE A SORT OF
BUSINESS OR THE PURCHASE OF AN
AUTOMOBILE OR OR SOME ESSENTIAL
NEED.
THAT IS IMPORTANT TO THEIR
PROSPERITY.
AND WE YOU KNOW WE'VE SEEN THAT --
SPECIALLY LOW INCOME PEOPLE TEND
TO NOT HAVE OPPORTUNITIES TO GET
ACCESS TO CREDIT.
AND THIS IS OUR OPPORTUNITY TO
DO THAT. FOR OUR COMMUNITY --
ACCORDING TO THE CONSUMER
FINANCE PROTECTION BUREAU 45% OF
THE INDIVIDUALS IN HIGH POVERTY
NEIGHBORHOODS.
ARE CREDIT INVISIBLE COURT ON
SCORE OVAL SIXTY MILLION U. S.
ADULTS HAVE CREDIT SCORES LOWER
THAN. SIX HUNDRED AND FIFTY
FIFTY MILLION PEOPLE HAVE NO
CREDIT SCORES AT ALL DO TOO
LITTLE OR NO BORROWING HISTORY.
RENT REPORTING.
IS WHEN TENANTS MONTHLY RENTAL
PAYMENTS ARE FURNISHED TO A
CONSUMER CREDIT BUREAU SO THEY
CAN BE INCLUDED IN THEIR CREDIT
REPORT. FOR MOST TENANTS RENT IS
THE LARGEST PAYMENT THEY MAKE
EACH MONTH.
AND ESPECIALLY IN CALIFORNIA
WITH OUR RENT -- RATES GROWING
AS MUCH AS THEY HAVE IN RECENT
YEARS.
AND HAVE A HOUSING SHORTAGE IS
ALSO CREATING -- THIS UNDUE
BURDENS AND THE PEOPLE OF OUR
STATE [inaudible]
AND THEY THEY MAKE.
PAYMENTS EVERY MONTH WITHOUT
RECEIVING ANY KIND OF CREDIT.
BENEFIT FOR A TRADITIONAL.
OR THAT -- THAT A TRADITIONAL
MORTGAGE HOLDER WOULD WOULD
RECEIVE SO THIS BILL WOULD
ESTABLISH THAT PROGRAM.
IT WOULD BE.
A ON OPT IN PROGRAM IT WOULD BE
OPTIONAL FOR THE PEOPLE THAT
PARTICIPATE.
INCLUDING IN OTHER PEOPLE THAT --
HOST -- THESE PROGRAMS -- AGAIN
OUR OUR GOAL IS TO CREATE.
ACCESS TO CREDIT.
AND I ASKED YOU.
TO HELP ME ESTABLISH THIS YEAR
INSTEAD OF CALIFORNIA WITHIN OUR
PROMISE ON AREAS IN CALIFORNIA.
AND WE HAVE A FEW WITNESSES HERE
THAT LIKE TO TESTIFY IF YOU
ALLOW THAT MISTER CHAIRMAN. FOR
YOUR WITNESSES TESTIFY MONASTIC
CRITICAL ROLE SO WE CAN
ESTABLISH A FORM -- BRADFORD
PRESENT AT HER HERE CHANG CHANG
HERE COME A I DON'T.
HAVE A YELLOW HERE DURAZO.
DURAZO HERE WEST SO.
HERE SO HERE MORALE.
MORALE HERE FORTINO [inaudible]
SIX MEMBERS A PORN HAS BEEN
ESTABLISHED SENATOR YOU CAN
CONTINUE WITH YOUR WITH THOSE.
AND FOR MEMBERS WHO JUST ARRIVED
WERE ON S. B..
SIX NINETEEN FIRST WITNESS IF
YOU'RE READY HE MAY PRESENT.
MISTER CHAIR AND MEMBERS -- MY
NAME IS JESSICA QUOTE I FOUND A
COMMUNITY OGANIZER WITH MUTUAL
HOUSE IN CALIFORNIA.
AN AFFORDABLE HOUSING NONPROFIT
AND FOR THE PAST YEAR AND A HALF --
WE HAVE CONTRACTED WITH RAM PLUS
TO REPORT.
ON TIME RENTAL PAYMENTS TO TWO
OUT OF THREE MAJOR CREDIT
BUREAUS AND THIS PARTNERSHIP
TOOK US ABOUT THREE MONTHS TO
DEVELOP AND IMPLEMENT.
IN ABOUT A HUNDRED TWENTY MULTI
FAMILY HOUSING -- COMMUNITIES.
AND WE FOUND THAT PRIOR TO THE
PROGRAM 40% OF OUR OF OUR
ROWLEY'S DIDN'T KNOW ANYTHING
ABOUT CHECKING THEIR CREDIT
REPORT.
OR ABOUT THEIR CREDIT CORE AND
NOW SIXTY THREE POINT FIVE OF
THEIR ROWLEY'S KNOW HOW TO CHECK
THEIR CREDIT SCORE REGULARLY --
AND SINCE WE STARTED WE HAVE A
SEVENTY EIGHT PARTICIPANTS FROM
OUR THREE COMMUNITIES -- TWO IN
SACRAMENTO AND ONE IN DAVIS AND
THROUGH THIS PARTNERSHIP
RESIDENT MEMBERS HAVE BEEN ABLE
TO SEE AN IMMEDIATE AN IMMEDIATE
BOOST AND THEIR CREDIT SCORES.
ONCE THEY ENROLL IN THE PROGRAM
BECASE NOW THEY'RE ON TIME RENT
PAYMENTS ARE BEING REPORTED AND
IT DATES BACK TO YEARS.
AND OUR DATA SHOWS THAT THE
AVERAGE INCREASE IN SCORES IS
FORTY POINTS.
AND ABOUT 11% OF ENROLLEES HAVE
BEEN ABLE TO ESTABLISH CREDIT
FOR THE FIRST TIME.
THIS THAT'S ME YES.
PLEASE I AM ANDREW I AM A
RESIDENT FROM MUTUAL HOUSING --
I ENROLLED IN THIS PROGRAM A
YEAR AND A HALF AGO WHEN IT
STARTED BECAUSE I WANTED TO ARE
YOUTO GET IT TO AT OUR
APARTMENT FIRST AND WE DID.
SO -- I HAVE A THING
PARTICULARLY IN THIS PROGRAM
YOUNG PEOPLE CAN BUILD THEIR
CREDIT WE HAVE A FEW IN OUR
COMMUNITY THAT ARE TWENTY ONE
THAT ARE NOW ACCESSING THE
PROGRAM AND THEY'RE BUILDING
THEIR CREDIT.
AND THEN WE ALSO HAVE IN DAVIS
YOU CAN ADD TWO COMMUNITY
RESIDENTS THAT ARE OVER EIGHTEEN
THERE NOW BUILDING THEIR CREDIT
AND MAXIMIZING IT.
SO THEY CAN DO BETTER THINGS
WITH THEIR LIVES AND WITH THIS
PROGRAM ALSO GIVES OTHER PEOPLE
THAT ARE RESTRICTED INCOME. TO
BUILD THEIR CREDIT AND GIVEN
THAT THEY HAVE AB FINANCIALLY
RESTRAINED LIKE OTHER PEOPLE IN
MY COMMUNITY A LADY THAT I KNOW
HER AT CREDIT WENT UP A HUNDRED
TWENTY POINT.
WHEN SHE SIGNED UP BECAUSE SHE'S
BEEN PAYING HER RENT FOR THE
LAST TWO YEARS ON TIME EVERY
MONTH BECAUSE THAT'S ONE THING
WE HAVE TO DO WE GOT THE PATE?
AND THEN MY CREDIT CAME UP SIXTY
FIVE POINTS BECAUSE I WAS TRYING
TO KEEP MY CREDIT GAVE HIS IT
WAS BAD A LONG TIME AGO BUT IT'S
BEEN DOING BETTER.
AND WITH THIS WE WE PAIR WITH
THAT FINANCIAL LITERACY COACHES
SO WE UNDERSTAND WHAT'S GOING ON
AND WE HAVE GAIN NEW SKILLS AND
WE COULD DISPUTE ERRORS OR
MISTAKES THAT ARE GOING ON
AGAINST IT IF WE HAVE ANY AND
THEN HOW.
TO REMOVE THE ERRORS FROM OUR
CREDIT AND ALSO WERE MORE
KNOWLEDGEABLE ABOUT IDENTITY
THEFT NINE TO SAY THANK YOU
CHAIRMAN AND COMMITTEE MEMBERS.
TO NO WITNESSES IN SUPPORT OF SB.
SIX NINETEEN HEARING SCENE NINE
ANY WITNESSES IN OPPOSITION.
ALL RIGHT HEARING SENILE HIM TO
BRING IT BACK TO THE COMMITTEE
AS ARE ANY QUESTIONS BY THE
COMMITTEE SENATOR CAFIERO.
THANK YOU MISTER CHAIR -- I I
DON'T HAVE ANY QUESTIONS I JUST
WANT TO SAY THAT -- REALLY
APPRECIATE THIS THE A SENATOR
WES -- AUTHORING THIS BILL AND I
REALLY APPRECIATE THE TESTIMONY --
THIS IS A REALLY [inaudible]
SIMPLE WAY. TO PROVE IT THAT
PEOPLE'S CREDIT.
IS IS ACTUALLY BETTER THAN WHAT
YOU THINK IT SHOULD BE -- AND
AND AND AND YOU KNOW.
PART OF THE CHALLENGE WHEN YOU
HAVE A LOW CREDIT SCORE IS THAT
THEN EVERYTHING BECOMES REALLY
EXPENSIVE.
ANY KIND OF LOAN ANY KIND OF OF
OF OF CREDIT ANYTHING AND SO ON
I WANT TO JOIN YOU AS A CO
AUTHOR ON WHEN IT'S APPROPRIATE
AND LIKE TO MAKE.
THE MOTION BUT I THINK YOU FOR
BEING HERE BECAUSE IT'S IT'S
GOOD TO HAVE THE ON THE GROUND
IT'S WORKED IN HERE'S HOW HOW IT
HOW IT'S WORKED -- SO THANK YOU
FOR BOTH FOR COMING ON A REAL
HOT DAY WHEN IT'S REAL BUSY TO
SELL.
THE HOUSE AND HANGING AROUND.
EIGHT IN THE US MUMBAI SHARE.
YES I ALSO WANT TO THINK OF THE
AUTHOR FOR THIS BILL AND AT THE
PERFECT TIME I'D LIKE TO SIGN ON
AS CO AUTHOR AS WELL THANK YOU.
YEAH QUESTION ARM.
I CAME IN A LITTLE BIT LATE I
APOLOGIZE -- ON THE CREDIT
SCORES SO YOU'RE A RENTER.
AND THEN THE LANDLORD REPORTS TO
THE VARIOUS CREDIT AGENCIES
RIGHT.
NOW.
IT IS SO HAVE YOU GUYS ALREADY
WORKED OUT A DEAL WORKED WELL
WITH THIS BE MANDATORY THAT THE
APARTMENT THE LANDLORDS HAVE.
TO REPORT TO THE CREDIT AGENCIES
ARE DOES OCCUR TO READ. FOURTEEN
AGENCIES -- CALL THE OWNERS OF
THE BILLING.
ON THESE OR IS THIS A NOW YOUR
QUESTION IS.
IS IT MANDATORY.
YEAH ON THE CREDIT REPORT WILL
IT BE MANDATORY UNDER THIS
PROGRAM NOW.
IT WOULD ONLY BE OF IT'S AN
OPTIONAL PROGRAM OF FOR THE
PEOPLE THE TENNIS TO PARTICIPATE
IN IT IT'S MANDATORY. FOR FIFTY
UNITS AND ABOVE IN PROBLEM
ASSUMES.
ALL THE OTHER -- SMALLER.
UNITS WOULD WOULD -- WOULD WOULD
WOULD BE OPTIONAL OKAY THAT'S
ALL I DIDN'T KNOW THAT THANK YOU.
YEAH IT'S OPTIONAL PROM PROGRAM
AS I UNDERSTAND MY ONLY QUESTION
BE ARE THERE OTHER STATES WHO
HAVE.
TRIED THIS OR THAT IT.
NO BUT THERE ARE OTHER -- PILOTS
OF OF THIS KIND OF PROGRAM
NOTHING THAT IS ACTUALLY A STATE
LAW.
ART I TOO WANT TO THANK THE
AUTHOR FOR ON INTRODUCING THIS
MEASURE AND I REALLY APPRECIATE
YOUR WORK WITH BOTH MYSELF AND
THE COMMITTEE OF GETTING A
VEHICLE HERE.
I APPRECIATE YOU ACCEPTING THE
MOMENTS AND I'LL JUST STATE
THOSE OF THAT'S OKAY -- THE THE
MEMBER ID SUGGEST THE FOLLOWING
DELETE THE REQUIREMENT THAT DB
O. COLLECT AND ANALYZE TO RENT
REPORTING DATA.
REQUIRED DB O. TWO CAN CONTRACT
WITH AN INDEPENDENT THIRD PARTY
TO ANALYZE THE DATA AND PREPARE
STUDY. FOR SUBMISSION TO THE DB
OWE PROVIDE A SPOUSE OF
SPECIFICITY.
I WAS AFTER WITH THEIR WORDS PET
SPECIFICITY. TO BOTH THE B. O.
AND TO THE THIRD PARTY.
REGARDING EXACTLY WHAT MESSAGE
TO USED TO CONDUCT THE STUDY AND
EXACTLY WHAT QUESTIONS TO ANSWER.
AND FOURTH REQUIRE DB O. TWO
POLES OF THE REPORT ON THE
INTERNET WEB SITE AND PROVIDED
TO THE LEGISLATURE YEAR PRIOR TO
THE BILL SUNSET DATE IS THAT
CORRECT.
YES THANK YOU.
ODD THAT BEING THE CASE -- WE
HAVE A DO PASS AS AMENDED TO
APPROACH AND IF I CAN GET A
MOTION -- YEAH SHE STARRED BEEN
MOVED BY SENATOR CAFIERO SO
MADAM SECRETARY PLEASE CALL THE
ROLL.
MOTION IS DO PASS AS AMENDED TO
APPROPRIATION SENATOR BRADFORD
HI.
I CHANGED MY KING I GOT A I
DON'T.
I DURAZO HI RESO I WAS SO I WAS
SO I MORALE [inaudible]
PARTON TINA.
THAT MEASURE HAS FIVE VOTES WILL
KEEP TO ROLL OPEN FOR THOSE APPS
TO MEMBERS -- NEXT UP IS S. B.
FIVE TO EIGHT THANK YOU LADIES
THANK YOU FOR YOUR TESTIMONY.
NO HE'S NOT.
THANK YOU MISTER CHAIRMAN -- SP
FIVE TO EIGHT IS A BILL THAT
WOULD ESTABLISH THE
INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK COMMISSION.
AND PLACE THE I I BANK UNDER THE
SUPERVISION OF THE COMMISSION.
AT THE OUTSET I'D LIKE TO COMMIT
TO ADOPT AN AMENDMENT SO WHAT
ADDRESS THE ISSUES RAISED.
IN COMMON TWELVE SPECIFICALLY
I'M WILLING TO ADOPT AMENDMENTS.
WHICH WOULD CREATE A TASK FORCE
TO STUDY THE WORKABILITY AND AND
VIABILITY POTENTIAL AND
POTENTIAL COSTS.
AN ESTIMATED TIME FRAME TO
IMPLEMENT.
THE APPROACH OUTLINE OF SP FIVE
TWENTY EIGHT TO ESTABLISH -- THE
THE INFRASTRUCTURE BANK.
IN ADDITION THIS COMMISSION.
WOULD BE TASKED WITH PRODUCING --
RECOMMENDATION TO THE
LEGISLATURE.
AND IT IS MY UNDERSTANDING THAT --
MY STAFF WILL CONTINUE WORKING
WITH THE SENATE BANKING STAFF TO
ADOPT THE AMENDMENTS IN THE
CENTER PREPARATIONS COMMITTEE.
THAT WOULD INCLUDE A PROVISION
WHICH WOULD TRIGGER FUTURE
ACTION IN THE EVENT THE
COMMISSION DETERMINES THIS PLAN.
IS VIABLE AND END A WORTHY OF OF
ADOPTION.
ACCORDING TO RECENT ESTIMATES
CALIFORNIA WILL NEED TO INVEST
MORE THAN.
SEVEN HUNDRED BILLION.
OVER THE NEXT DECADE THE PUBLIC
FACILITIES TO SERVE A GROWING
POPULATION.
UNDER GREAT UPGRADING SCHOOL
UNIVERSITY BUILDINGS --
MAINTAINING HIGHWAYS AND PUBLIC
TRANSIT SYSTEMS.
AND ALSO MAKE IN OUR WATER
SYSTEM ADEQUATE RELIABLE AND OF
COURSE A SUSTAINABLE FINANCING
COSTS INCLUDING ISSUANCE FEES
INTEREST PAYMENTS.
AT AT A NEAR TERM OF OF AT A 4%
RATE [inaudible]
US.
TRANSACTION FEES ISSUED BY COOK
COMMERCIAL BANK.
BANKS WOULD ADD UP ALMOST
ANOTHER SEVEN HUNDRED MILLION.
FOR A TYPICAL A THIRTY YEAR TIME
FRAME.
THAT TOTAL COULD BE HIGHER IF
INTEREST RATES GO UP.
THIS IS -- TROUBLESOME NUMBER
BUT IT GIVES US AN IDEA OF THE
MAGNITUDE THAT FINANCING COSTS --
COSTS ARE OR LOCAL GOVERNMENTS.
OTHER COUNTRIES HAVE ATTENDED
THE ADDRESS THIS ISSUE.
GERMANY'S PUBLIC BANK THE K. F.
W..
IS LARGER THAN THE WORLD BANK
WITH ASSETS OF SIX HUNDRED
BILLION AS OF TWENTY SIXTEEN K.
F. W. HAS.
HELPED FUND GERMANY'S GREEN
REVOLUTION BY OFFERING VERY LOW
INTEREST RATES RANGING FROM 123%.
A CALIFORNIA PAT BUT PUBLIC
BANKING OPTION WOULD PROVIDE
SERVICES.
ONLY TO A LIMITED OF QUALIFIED
MUNICIPALITIES AND J. P. A.'S.
THAT HAVEN'T MINIMAL RISK OF
DEFAULT OR OR THE NEED TO
RESTRUCTURE LOANS.
THE CALIFORNIA INFRASTRUCTURE
AND ECONOMIC DEVELOPMENT BANK IS
THE STATE OF CALIFORNIA IS ONLY
GENERAL PURPOSE FINANCING
AUTHORITY.
THE I. BANKERS TWENTY YEARS OF
EXPERIENCE IN MAKING PRUDENT
INFRASTRUCTURE LOANS AT BELOW
MUNICIPAL BOND RATES AS OF JULY
TWENTY EIGHTEEN I BANK HAS
FINANCED OVER THIRTY EIGHT
BILLION.
AND INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT PROJECTS.
THE I. BANK HOWEVER COULD NOT
ACCEPT DEVELOP THE DEPOSITS THE
STATE OF CALIFORNIA.
HAS APPROXIMATELY.
TWO HUNDRED BILLION DOLLARS A
YEAR IN DEPOSITS THESE DEPOSITS
CAN BE LEVERAGED TO PROVIDE.
THESE ARE VERY IMPORTANT LOANS
TO OUR STATE AT VERY LOW
INTEREST RATES WHICH WOULD NOT
ONLY EARNED OUR STATE A RETURN.
ON OUR INVESTMENT BUT ALSO HELP
TO GET ACCESS TO CAPITAL FOR THE
FOR THESE **** BELLY TO VERY LOW
RATES [inaudible]
SO.
DESPITE THESE LIMITATIONS THE I.
BANK EXPERIENCE STEADY DEMAND
FOR IT THE THE THE THE THE LOAN
PROGRAM THAT THEY OFFER WHICH
WITH. NINETY EIGHT ENQUIRIES IN
FISCAL YEAR TWENTY SIXTEEN
TWENTY SEVENTEEN FOR NEARLY FIVE
HUNDRED SEVENTY THREE MILLION.
IN INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT PROJECTS IMAGINE
WHAT WE COULD DO IF THAT BANK
HAD MONEY.
I HAVE WITH ME -- JON BATISTE
HE'S A RETIRED BANK WITH OVER
FORTY YEARS OF EXPERIENCE IN
ASSET PROTECTION PROFITABILITY
AND ASSET GROWTH JOHN WAS THE
FORMER.
REGIONAL VICE PRESIDENT OF
NATIONAL BANK OF CALIFORNIA AND
HE'S A WEALTH OF KNOWLEDGE IN
NOT ONLY.
STARTING BANKS BEGINNING BANKS
BUT HOW A STATE BANK COULD
BETTER SERVE THE PEOPLE OF
CALIFORNIA.
BUT WHAT WITH THE PERMISSION OF
THE CHAIR.
YES I AM.
THANK YOU VERY MUCH LADIES AND
GENTLEMAN FOR ALLOWING ME -- TO
TO COME TODAY -- IT'S A PLEASURE
MY PLEASURE -- I'VE BEEN LOOKING
INTO -- PUBLIC BANKING FOR THE
LAST THREE YEARS ACTUALLY SINCE
THE BEGINNING OF TWO THOUSAND
SIXTEEN I'LL GIVE YOU JUST A
LITTLE BIT OF MY BACKGROUND IN
BANKING -- AS STATED I'VE HAVE
OVER FORTY YEARS OF BANKING --
MOSTLY AT 99% OF IT WAS BUSINESS
BANKING NOW -- AND I'M NOT A
RETAIL BANKING OFFICER -- I'VE
CONSULTED WITH -- RECENTLY MOST
RECENTLY WITH ATTORNEYS LOOKING
TO BUY A BANK -- I'VE ALSO
WORKED WITH PEOPLE -- OUTSIDE OF
THE STATE OF CALIFORNIA IN
ESTABLISHING -- NEW BANKS -- IN
TODAY'S WORLD WE WE GENERALLY
LOOK -- TO ACQUIRE EXISTING
BANKS BECAUSE WE WE LIKE THE
CHART WITH -- HI I IN ADDITION
TO BANKING I I SPENT YEARS
WORKING WITH NON PROFITS THANKS
TO THE FAIR HOUSING -- WOMEN'S
KERR COTTAGE -- SAN FERNANDO
VALLEY LEGAL FOUNDATION AND THE
AMERICAN CANCER SOCIETY ON THESE
ENTITIES I MEAN THE BAND BOARD
MEMBERS PRESIDENTS A CHAIRMAN OF
THE BOARD -- TOO I HAVE SOME
KNOWLEDGE OF NONPROFIT ENTITIES --
THE I HAVE A HAT WORKED WITH
PRESIDENTS -- THREE MAJOR BANKS
IN TURNING AROUND BANKS -- WE WE
HAD ONE BANK THAT -- IS A BIT
MULTI BILLION DOLLAR BANK THAT
HAD A LOSS OF OVER ELEVEN
MILLION WE CONVERTED THAT BANK.
TO NOMINAL PROFIT AND WE SOLD
THE BANK.
SO WE HAVE SOME EXPERIENCE IN
HOW BANKS OPERATE HOW WHAT IT
TAKES TO MAKE THEM BE SUCCESSFUL.
AW I'VE.
LATCHED ON AT THE END I USE THAT
LOOSELY -- TO THE THE THOUGHT OF
CONVERTING THE ALLIED BANK
BECAUSE IT'S SOMETHING THAT'S
ALREADY THERE -- IS NOT
SOMETHING YOU HAVE TO START FROM
SCRATCH AS I SAID MOST BANKERS
NOW LOOKING TO ACQUIRE EXISTING
BANKS.
BECAUSE IT IS JUST CHEAPER AND
IF IT WORKS A LOT EASIER FOR
THEM -- THE I'D MAKE KIDS OVER
FIFTEEN YEARS TO MY KNOWLEDGE
NEARLY TWENTY YEARS OF OF
OPERATING SUCCESSFULLY AND
LENDING -- TO PRIMARILY
MUNICIPALITIES FOR
INFRASTRUCTURE.
IMPROVEMENT -- I I DO AGREE THAT --
A BASE ON MY UNDERSTANDING THAT
IT WILL BE IN THE BILLIONS OF
DOLLARS THE HUNDREDS OF BILLIONS
OF DOLLARS TO DO WHAT NEEDS TO
BE DONE -- FOR THE STATE OF
CALIFORNIA TO BRING OUR
INFRASTRUCTURE.
UP TO WHERE IT SHOULD BE AND TO
ADD TO WHAT IS NEEDED IN THE
STATE -- ONE OF THE REASONS I
LIKE THE I BANK IS BECAUSE IF
YOU LOOK IF WE WERE ABLE TO JUST
SAVE.
A QUARTER OF A PERCENT LESS IF
IN EIGHTH OF A PERCENT.
OF BRANHAM ON NOT ALONE -- THAT
SAVES US OVER A MILLION DOLLARS --
AND YOU MULTIPLY THAT OVER A
TWENTY YEAR LOAN THAT'S A
SUBSTANTIAL SAVINGS -- I BELIEVE
THAT -- THAT CAN BE DONE -- THE
PRESENT STATE OF THE I. BANK IS
THAT IT BORROWS MONEY THROUGH
BONDS AND SO FORTH TO SUPPORT
ITS ACTIVITIES -- IT HAS A
RESTRICTED RESTRICTION ON ITS
CAPITAL -- JUST EXAMINING THE
THE FINANCIAL STATEMENTS OF THE
THE PREVIOUS YEAR IT COULD HAVE
DOUBLED WHAT -- IT MADE -- IF
THE RESTRICTIONS WERE NOT THERE --
AND THEREFORE I I BELIEVE THAT
IF THE STATE CAPITALIZE THE THE
THE I BANK PROPERLY -- IT CAN IT
CAN NOT ONLY DO WELL IT CAN DO
VERY WELL OVER A RELATIVELY
SHORT PERIOD OF TIME -- THE
BIGGEST HICK UP WITH WITH DOING
A COMMERCIAL BANK OF CONVERTING
THE I. BANK TO A COMMERCIAL BANK
IS THE LACK OF THE POSITIVE
SUPPORT -- THE NEED FOR FUNDS.
I BELIEVE THAT CAN BE DONE -- I
I HAVE A SCENE THE LETTER FROM
THERE SEE I YOU -- DAVE ALSO
ATTENDED MEETINGS THAT I HAVE.
BEEN A PART OF WHERE THEY'VE
EXPRESSED THEIR SUPPORT OF A
PUBLIC BANK I'VE ALSO HAD OTHER
UNIONS -- MAJOR UNIONS
PARTICIPATE IN SOME OF THE FORMS
THAT I'VE BEEN A PART OF AND
THEY ALSO SUPPORT THE IDEA OF A
PUBLIC BANK.
OF FOR THE SIMPLE REASON THAT IT
NOT ONLY THE THE NUMBER I GAVE
YOU AN EIGHTH OF A POINT TO IT
WHICH IS JUST A GAS -- KNOWING
HOW BANKS OPERATE IT CAN BE MORE --
THEY ALSO SEE THE FEES SINCE AND
CHARGES THAT COME FROM DEALING
WITH YOUR NORMAL COMMERCIAL BANK.
THOSE FEES AND CHARGES -- COULD
BE ELIMINATED ALL GO TOWARDS --
THE STATE OF CALIFORNIA -- THE
IDEA IS NOT TO HAVE A NON PROFIT
IT WILL BE A FOR PROFIT BANK THE
MAJOR DIFFERENCE IS.
THE PROFIT COMES AT THE STATE OF
CALIFORNIA -- AND THE FIGHT THAT
BANKS ARE -- OBVIOUSLY BEING A
SUCCESSFUL.
WE BELIEVE THAT -- THE ALLIED
BANK -- CAN ALSO BE SUCCESSFUL.
ARMED.
WITNESSES IN SUPPORT OF THIS
MEASURE.
WHICH COMPORT.
DAVID KING TOWN ON BEHALF OF
DEMOCRACY COLLABORATIVE WE'RE
PROUD TO BE THE SPONSORS OF THE
BILL.
THANK YOU.
ANY ADDITIONAL WITNESSES IN
SUPPORT.
SEEN HERE NINE WITNESSES IN
OPPOSITION.
JASON LANE CALIFORNIABANKERS
ASSOCIATION WE'D -- VERY MUCH
LIKE TO ACKNOWLEDGE THE AUTHOR
AND COMMITTEE STAFF.
AND THE COMMITTEE IN WORKING
WITH US ON AMENDMENTS TO THE
MEASURE WE THINK -- THE RECENT
AMENDMENTS ACCEPTED -- NAMELY
THE TASK FORCE TO CREATE THE
WORKER WORKABILITY SCOPE
DOCUMENT IS A STEP IN THE RIGHT
DIRECTION -- IMPENDING REVIEW OF
WHAT THE LANGUAGE LOOKS LIKE
RELATIVE TO A TRIGGER -- TO MOVE
FORWARD WE RESERVE THE RIGHT TO
POTENTIALLY -- REMOVE OUR
OPPOSITION TO THE MEASURE.
THANK YOU THE QUICKNESS.
MARK LAST SEEN ABOUT HALF THE
CALIFORNIA COMMUNITY BANKING
NETWORK AVENUE WE'RE SIMILAR
POSITION AS CALIFORNIA BANKERS
ASSOCIATION WE APPRECIATE THE
DIRECTION THE SPELLS MOVING.
LOOK FORWARD TO WORKING WITH THE
AUTHOR ON HIS MEASURE AND DAD
WANT TO REVIEW THE TRIGGER
LANGUAGE BUT HOPE TO GET TO A
NEUTRAL POSITION AS WELL THANK
YOU.
THANK YOU.
THE ESERVER THORN CAL CHECK
CALIFORNIA CHAMBER OF COMMERCE
HAVE TO ALIGN MYSELF WITH THE
COMMENTS MADE BY THE CALIFORNIA
BANKERS ASSOCIATION.
THANK YOU.
IN ADDITION WITNESSES SEEN HER
NUMBER ON THE BACK TO COMMITTEE
ANY QUESTIONS BY THE COMMITTEE.
TWO NINE ARE YES ASSISTANT.
I APPRECIATE THE THE OPPOSITION
ON LOOKING AT THE THE AMENDMENTS.
AND I I THINK THIS IS THE RIGHT
DIRECTION TO GO I I I I LIKE THE
IDEA MIGHT USE A SERVED BOMB ON
THE I. BANK.
AND ON A IT HAS UNREALIZED
POTENTIAL.
AND THE THE THE DEVIL'S IN THE
DETAILS SO I THINK HAVING THE
TASK FORCE TO GO THROUGH A
FEASIBILITY AND AND LOOK AT WHAT.
WHAT THE BANK WOULD DO HOW IT
WOULD OPERATE AND -- AND WHAT
THE KINDA PARAMETERS WOULD BE IS
IS A REALLY GOOD THING SO I'M
GONNA SUPPORT THIS BECAUSE I
THINK IT'S GOING IN THE RIGHT
DIRECTION AND THEN.
YOU KNOW HOPEFULLY IT THE
LANGUAGE GETS WORKED OUT SO THAT
IT IT THERE THERE CAN BE.
WIDESPREAD SUPPORT.
THANK YOU SENATOR RUSSELL THANK
YOU AND AND THANK THE AUTHOR AND
ALSO THE CHAIR FOR MOVING US IN
THE RIGHT DIRECTION BECAUSE
THERE'S NO DOUBT.
ABOUT EVERYTHING THAT YOU SAY
THE BENEFITS THAT THAT COULD
COME FROM IT.
I CAN ONLY IMAGINE.
SOME OF THE COMPLEXITIES.
THAT ARE INVOLVED IN TURNING
THIS INTO.
WHAT WE WOULD LIKE IT TO BE FOR
THE PEOPLE OF CALIFORNIA?
I VERY MUCH BELIEVE IN OUR
DOLLARS OUR TAX DOLLARS SHOULD
BE USED FOR THE COMMON GOOD.
AND I THINK THIS IS ANOTHER --
VERY AMBITIOUS BUT I'M SURE
DOABLE EXAMPLE OF WHAT WE COULD
DO HOW WE CAN INVEST OUR OWN TAX
DOLLARS FOR THE BENEFIT OF THE
COMMON GOOD SO THANK YOU.
THANK YOU INTERESTING COMMENT.
I TOO WANT TO THANK GOD THE
AUTHOR OF THIS MEASURE I KNOW WE
HAD A LOT OF DISCUSSION GOING
BACK AND FORTH ON HOT NOT.
IN SUPPORTING THE CONCEPT
BECAUSE WE AGREE THAT THE
CONCEPT IS GREAT BUT IN THE
DETAILS OF HOW DO WE MAKE IT
WORK.
HOW DO WE MAKE IT WORK IN A TIME
FRAME AND?
INKING COMPILE SOMETHING THAT IS
DELIVERABLE TO THE STATE OF
CALIFORNIA WE ALL CLEARLY AGREE
THERE'S GREAT BENEFIT HERE.
I GUESS MY ONLY QUESTION ASKING
YOUR WITNESS -- WHAT DO YOU FEEL
IS THE TIME FRAME THAT IT WOULD
TAKE SHAPE THE STUDY COMES BACK
IT SAYS A YOU CAN GO FROM THE
TIME YOU COULD BE UP AND RUNNING
AND AND SERVING AS A DEPOSITORY?
WHAT?
THE FACT THAT THE THE ALLIED
BANK IS ALREADY DOING ONE HALF
OF WHAT BANKS DO IT IS A GREAT
INCENTIVE FOR US TO TO LOOK AT
THIS -- THERE -- ENTITIES SUCH
AS THE JACK HENRY -- COMPANIES
THAT CAN STEP AND THAT THEY'VE
BEEN DOING THIS FOR A MIDDLE
MARKET AND SMALL OF BANKS FOR
YEARS -- I I THINK -- ONCE IF
YOU WERE ASKING ABOUT THE TIME
FRAME AFTER.
COMPLETION I THINK.
WE THE BANK WILL BE IN A
POSITION.
SUBJECT TO APPROVALS -- TO START
MAKING MONEY IMMEDIATELY -- THE
OPERATION THE THE PAS TORY SIDE
WILL.
THAT WILL TAKE TWO TO THREE
YEARS.
IN ORDER TO GET THAT ROLLING BUT
THAT CAN BE DONE -- IN A NUMBER
OF DIFFERENT WAYS ONE
PARTICIPATING WITH OTHER BANKS
COMMUNITY BANKS -- AND AND HAVE
AN ACCOUNT WITH THOSE BANKS
UNDER THE NAME OF THE STATE OF
CALIFORNIA.
THANK YOU.
AGAIN I WANT TO THANK THE AUTHOR
AND IT'S MY UNDERSTANDING THAT
YOU'VE -- ACCEPTED -- THE
NEMATOCYSTS SCRIBED ON A PAGE --
TEN COMIC.
TWELVE AND THE MIMIDS SUGGESTED
WE GIVE US -- THE DETAIL WE NEED
TO FIGURE OUT.
WHAT WHAT WHAT IT WOULD TAKE IN
TERMS OF AGAIN THE TASKS THE
TIME AND MONEY TO CONVERT DIE
BANK INTO A DEPOSITORY
INSTITUTION?
WE WILL ALSO DISCUSS ADDING THE
REQUIREMENT THAT THE TASK FORCE
RETURN I RECOMMENDATION WITH A
WITH IT.
WITH IS ABSENT WHEN IT SUBMITS
ITS REPORT WHICH I'M HAPPY TO
AGREE TO AS WELL SO THANK YOU
FOR THAT.
AND FINALLY YOU AND I HAVE
DISCUSSED -- YOUR DESIRE TO SEE
SOME SORT SORT OF TRIGGER ADDED
TO THE BILL WHICH WOULD BE
PULLED IF THE TASK FORCE.
DELIVERS A POSITIVE
RECOMMENDATION I SUGGEST YOU AND
YOU AGREE TO ADD TO TRIGGER
LANGUAGE IN THEIR PREPARATIONS
COMEDIAN GIVE.
BOTH OUR STAFF -- TIME TO WORK
ON LANGUAGE WOULD COUNSEL IS
THAT CORRECT.
SOUNDS VERY ACCURATE OKAY THANK
YOUS SO WITH THAT ALL BEING
STATED -- WE'RE LOOKING FOR A
RECOMMENDATION I WOULD DO PASS
TO AMENDMENT SO WE NEED A MOTION
PLEASE.
IT'S BEEN PROBABLY MOVED.
MADAM SECRETARY PLEASE CALL THE
ROLL ON SP FIVE TO EIGHT MOTION
IS DO PASS AS AMENDED TO
APPROPRIATIONS SENATOR BRADFORD
HI.
I CHANG.
HAVE A YELLOW.
I DURAZO.
DRESSER I WEST SO HI WITH SO I
BURROW [inaudible]
POURTANT TINO.
MEASURE AS FOR VOTES -- SISTER
SAYS IN EFFECT A SIGNIFICANT
NUMBER TO PASS SO WE'RE GOOD
WE'RE GOOD THERE SO [inaudible]
THANK YOU.
SENATOR WHY SO.
NEXT UP MISTER JONES.
SENATOR JONES WHEN YOU'RE READY
YOU'RE PRESENTING SP
[inaudible]
FIVE FORTY YEAH.
GOOD AFTERNOON MISTER CHAIR
THANK YOU FOR THE OPPORTUNITY
PRESENT TODAY I'M PRESENTING SP.
FIVE FORTY A SPLIT DOLLAR LIFE
INSURANCE POLICY ALLOWS THE COST
AND BENEFIT OF A PERMANENT LIFE
INSURANCE POLICY TO BE SHARED.
CALIFORNIA ALLOWS CALIFORNIA LAW
ALLOWS NONPROFITS TO OFFER THESE
UNIQUE POLICIES TO THEIR
OFFICERS.
AS AN ADDITIONAL BENEFIT THAT
ENDS UP BEING COST NEUTRAL TO
THE NON PROFIT.
I'D LIKE TO ACCEPT THE SUGGESTED
AMENDMENTS ON PAGE FOUR OF THE
COMMITTEE ANALYSIS AND THANK THE
COMMITTEE STAFF FOR THEIR
DILIGENT WORK ON THIS BILL.
ENSURING THAT THE ARRANGEMENT IS
INDEED COST NEUTRAL FOR THE NON
PROFIT.
CURRENT LAW REQUIRES THIS
ARRANGEMENT TO HOLD BOTH THE
CASH SURRENDER VALUE AND THE
DEATH BENEFIT AS SECURITY.
HOWEVER THIS REQUIREMENT TAKES
AWAY THE BENEFIT TO THE OFFICER
SINCE THEY ARE NOT.
ABLE TO UTILIZE ANY OF THE CASH
VALUE OF THE POLICY.
SINCE IT IS REQUIRED TO BE HELD
AS SECURITY FOR THE ARRANGEMENT.
SENATE BILL FIVE FORTY SLIGHTLY
ADJUST THE VALUE THAT IS
REQUIRED TO BE HELD A SECURITY
ON A SPLIT DOLLAR LIFE INSURANCE
POLICY.
UNDER ALONE REGIME TO EITHER THE
DEATH BENEFIT OR THE CASH
SURRENDER VALUE OR BOTH.
THIS BILL GIVES NON PROFITS IN
CALIFORNIA EVERY KRUGMAN AND
RETENTION TOOL. TO COMPETE IN
THE MARKET IN THE EMPLOYMENT
MARKET I RESPECTFULLY ASK FOR I
VOTE I THINK I'M.
ONE OF MAYBE TWO OR THREE
WITNESSES TODAY THANK YOU WHEN
YOU'RE WITH US YOU'RE READY.
THE CHAIR MEMBERS JOHN SHRIEKING
ASSOCIATION OF CALIFORNIA LIFE
AND HEALTH INSURANCE COMPANIES.
BILLS -- PRETTY STRAIGHTFORWARD
AND BUT AN IMPORTANT ONE AND I
THINK IT'S ONE THAT ACTUALLY
HELP WITH RETENTION AND OF
EMPLOYEES IN THE NONPROFIT WORLD
SO FOR THAT WE STRICTLY ESCRIBO.
BRICK.
DISHING WITH THIS ISN'T SUPPORT.
MR MEMBERS JOHN NORWOOD HAS --
ON BEHALF OF PACIFIC LIFE IN
NORTHWESTERN MUTUAL WHICH ARE
MEMBERS OF THE ASSOCIATION OF
CALIFORNIA LIFE AND HEALTH.
OF SITUATION IN SUPPORT THANK
YOU THANK YOU.
GOOD AFTERNOON SURE MCCUE
REPRESENTING THE NATIONAL
ASSOCIATION OF INSURANCE AND
FINANCIAL ADVISORS AND SUPPORT
ABOUT.
GREAT NEED TO SHORE THIS IS
SUPPORT JANE HEARING ON
WITNESSES IN OPPOSITION.
NOT TO BE SEEN OR HEARD FROM I
BRING IT BACK TO THE COMMITTEE
ANY QUESTIONS BY THE COMMITTEE
MEMBERS -- AND BY SURE
[inaudible]
AND IT.
GREAT ARE AND ALSO I'M GONNA
THINK DAUGHTER -- FOR TAKING THE
MEMANTINE AMENDMENTS CLOSE A
LOOPHOLE BY ENSURING THAT IFTTT
CASH SURRENDER VALUE OF
INSURANCE POLICIES USED TO
SECURE THE LOAN MADE BY THE
NONPROFIT CORPORATION TO THE
POLICY HOLDER.
THAT CASH SURRENDER VALUE VALUE
OF THE POLICY IS ALWAYS LARGE
ENOUGH. TO FULLY REPAY THE LOAN
FOR THE LIFE OF THE POLICY IS
THAT CORRECT THAT'S RIGHT WE PUT
IT AND THERE'S A TEST TO MAKE
SHOULD CATCH.
GOT HI I APPRECIATED.
WE HAVE A MOTION BY SENATOR
CHANG WE HAVE A TWO PASS TO THE
FOUR MADAM SECRETARY PLEASE CALL
THE ROLL ON SP.
FIVE FORTY MOTION IS DO PASS AS
AMENDED AS AMENDED YES.
TO FOR SENATOR BRADFORD HI.
I CHANG.
CHANG I HAVE A YELLOW.
I DURAZO.
DRESSER I WAS SO.
WITH SO I MORALE.
I PORTANT TINA.
THE MEASURE HAS SIX VOTES IT OUT
OF COMMITTEE -- MEMBERS THAT
CONCLUDES OUR BUSINESS TO FOR
TODAY AND WE STAND ADJOURNED.
WHAT A MORALE I'M SORRY?
YES I WILL -- LOOK TO CALL ON S.
B. SIX NINETEEN MADAM SECRETARY
CALLED OUT TO MEMBERS.
THE MOTION IS DO PASS AS AMENDED
TO APPROPRIATIONS.
SENATOR MORALE.
MORALE I THINK YOU.
THE MEASURES OUT -- SIX ZERO NOW
MEMBERS WE STAND ADJOURNED WE
CONCLUDED OUR BUSINESS FOR TODAY
THANK YOU.
THANK YOU LET