WELCOME TO THE SUBCOMMITTEE
NUMBER.
FOUR OUT WE ARE GOING TO TAKE OF
THE VOTE ONLY.
ISSUES.
OF WHERE OLD TAKE UP ISSUES
NUMBER ONE THROUGH.
FIFTEEN FIRST OF ALL WE NEED
.
TAKING UP A ISSUES ONE THROUGH.
FIFTEEN AND WE NEED A MOTION.
ISN'T SO MOVED OKAY.
TURNER RAZA HI THERE NIELSEN
CENTER NUMBER.
WE'RE GONNA HOLD IT OPEN FOR
SENATOR.
NIELSEN [inaudible]
OKAY.
BUT IN A MONTH.
THE STATE TREASURER'S OFFICE.
GOOD MORNING THIS STATE
TREASURER.
WELCOME
[inaudible]
OKAY.
THANK YOU THANK YOU VERY MUCH
SENATOR AND OF CENTER OF NUMBER
HIS WEALTH -- FOR HERE YESTERDAY
I AM REQUESTING A FUNDING
REALIGNMENT FROM MY OFFICE.
SPECIFICALLY REQUESTING AN
INCREASE TO OUR GENERAL FUND
ALLOCATION BY SEVEN MILLION
DOLLARS.
ALONG WITH CORRESPONDING
DECREASE TO OUR REIMBURSEMENT
ALLOCATION.
THE SHIP WILL ASSIST THE STATE
TREASURER'S OFFICE WITH ITS
EFFORT TO APPROPRIATELY
REALIGNED FUNDING.
BASED ON WORKLOAD GOVERNMENT
CODE AND BEST PRACTICES.
FURTHERMORE THIS REALIGNMENT
WILL ALLOW THE STATE TREASURER'S
OFFICE TO REDUCE ITS DEPENDENCE
ON REIMBURSEMENTS.
THUS REDUCING THIS THE TREASURES
OFFICES RISK ASSOCIATED WITH ITS
CURRENT UNSUSTAINABLE FUNDING
STRUCTURE.
AND MY OFFICE IS AVAILABLE AT
YOUR STAFF RECOMMENDATION WHICH
APPROVES THE REQUEST AS BUDGETED.
AND ADOPTS BUDGET BILL LANGUAGE
TO REQUIRE MY OFFICE TO REPORT
TO THE LEGISLATURE I MARCH FIRST.
TWENTY TWENTY ON AN ASSESSMENT
OF THE OFFICES OVERALL RESOURCE
REQUIREMENTS.
SUCH AS NO LONGER PROCESSING THE
WOMEN INFANTS AND CHILDREN --
WITH BELCHER'S EFFORTS TO
ACHIEVE EFFICIENCIES
[inaudible]
THANK [inaudible]
OKAY [inaudible]
HELLO.
HI CHRISTINE AT THE LEGISLATIVE
ANALYST'S OFFICE GOOD AFTERNOON.
I SAID WE WOULD NOTE THAT WE
THINK THIS PROPOSAL IS ABBY
TECHNICALLY COMPLEX A
SIGNIFICANT CHANGE IN THE
FUNDING STRUCTURE OF THE STATE
TREASURER'S OFFICE -- IT'S BASED
IN PART ON A CONSULTANT STUDY
THAT WAS -- PRETTY THOROUGH IN
PRETTY LENGTHY AND SO -- BUT
DOES APPEAR TO BE A PRETTY
THOROUGH DOCUMENT IT'S GONNA
TAKE SOME TIME TO FULLY REVIEW
IN THIS THAT TO DETERMINE
WHETHER IT -- PLEASE SUPPORT
THIS THAT PROPOSAL I THINK IT'S
JUST A DIFFICULT TYPE OF A
PROPOSAL TO FULLY EVALUATE IN
THE MAY REVISION.
WHICH IS NOT QUITE ABBREVIATED
AS YOU WELL KNOW.
I'M FURTHER WE NOTE THAT IT'S
UNCLEAR AT THIS TIME WHETHER
THEY'LL BE ANY WORK THAT
REDUCTIONS ASSOCIATED WITH.
THAT IT REDUCTION WORKLOAD ESTO
ES IS THE WITH THE WAY PROGRAM
SO -- WHETHER THEY'LL BE
STAFFING REDUCTIONS AFFECTED BY
THAT -- AND SO WE THINK IT'S
IMPORTANT TO HAVE TIME WELL YES
THAT THAT.
SO -- WE SUGGEST LEGISLATURE
CONSIDER PROVIDING THE
TREASURER'S OFFICE WITH.
I SUMMER ALL OF THESE RESOURCES
ON A ONE YEAR BASIS JUST -- TO
NINETEEN TWENTY WE THINK THAT'LL
GIVE SOME ADDITIONAL TIME FOR
THE LEGISLATURE TO CONSIDER
THEIR LIVES.
I'M AND FOR THE TREASURER'S
OFFICE TO U. S. SASS -- WHAT
STAFFING REDUCTIONS MIGHT BE
APPROPRIATE GIVEN THEIR
RESPECTIVE?
DOMINIC DEPARTMENT OF FINANCE --
WE'VE BUILT PERMANENT FUNDING IS
APPROPRIATE.
FACING -- THE SPENDING
REALIGNMENT WILL RIGHT SIDE
FUNDING STRUCTURE TO BETTER
REFLECT ITS CURRENT.
OKAY DO YOU LIKE TO ADD ANYTHING
YES TO BE YES -- I DID HAND OUT
A PACKET I DON'T KNOW IF YOU
HAVE THAT BUT IT WILL SHOW US
SPECIFICALLY I THINK THE SECOND --
CHART.
THAT THE GENERAL FUND SUPPORT
SINCE TWENTY TWO THOUSAND ONE IT
WAS ABOUT YOU KNOW 46% GENERAL
FUND 46% REIMBURSEMENT -- HAS
SIGNIFICANTLY DECLINED OVER
SINCE TODAY YET THE
REIMBURSEMENTS HAVE GONE UP.
AND THIS IS OUT WHY WE'RE BACK
HERE THIS SENSE OF URGENCY --
WITH THE WITH CONTRACT EXPIRING --
IS GOING TO PUT A LOT OF
PRESSURE ON US TRYING TO BALANCE
OUR BUDGET.
JUST ON REIMBURSEMENTS WHICH
WOULD -- TELL.
US HAVING TO INCREASE -- THE
AMOUNTS THAT WE CHARGE ALL OF
THE DIFFERENT DEPARTMENTS THAT
WE SERVE HERE.
IN -- IN OUR OFFICE AND I THINK
IT'S A THIRD PAGE FROM LAST.
ALL OF THE REIMBURSEMENT THAT WE
RECEIVED FROM THE OTHER STATE
AGENCIES.
AND IT WOULD PUT A LOT MORE
PRESSURE.
ON ON THE BUDGETS FOR THESE
AGENCIES AS WELL WE HAVE TO
INCREASE.
THE COST FOR THEM SO THAT WE AND
DO OUR JOB -- YOU KNOW I THINK
THAT WOULD ALSO I SHOULD BE A
CONSIDERATION.
AND ON THE LAST PAGE QUICK FACTS
ABOUT THE TREASURER'S OFFICE.
ALSO THE TREASURE HANDLES ABOUT
TWO TRILLION DOLLARS OF PAYMENTS
AND DEBITS.
EACH YEAR THROUGH OUR OFFICE.
WE MANAGED OVER A HUNDRED
BILLIONDOLLARS IN SHORT TERM
INVESTMENTS FOR THE STATE AND
LOCAL GOVERNMENTS.
WE ALSO OVERSEE NINETY BILLION
DOLLARS WORTH OF BONDS AT THIS
MOMENT.
AND IN ADDITION AS YOU CAN SEE
ALL OF THE DIFFERENT FUNCTIONS
WHETHER IT'S YOU KNOW HOLDING
OUT. THOUSAND INDIVIDUAL
ACCOUNTS ACROSS FORTY ONE BANKS
WE'VE PROCESS MORE THAN SIXTY
MILLION WARRANTS CHECKS AND
VOUCHERS.
IN A TYPICAL YEAR WE HAVE THE
MORE THAN THREE HUNDRED AND
FIFTY THOUSAND INDIVIDUAL BANK
DEPOSITS.
WE HAVE TO OF PROCESS NINETY
THOUSAND DISHONORED CHECKS THAT
MUST BE REVERSED AND TRANSMITTED.
WE PROCESS MORE THAN FIFTEEN
THOUSAND WIRE TRANSFERS EACH
YEAR TYPICALLY.
IN WE CLEAR UNSETTLED MORE THAN
FIFTY FIVE THOUSAND SECURITY
CHANCE BIRTH TRANSACTION EACH
YEAR.
IN THE COLLATERAL MANAGEMENT
SECTION SO EVEN THOUGH THE WICK --
CONTRACT IS GOING TO BE EXPIRING
A WE STILL HAVE TO DO ALL OF
THESE FUNCTIONS -- AND ALL OF
THEM WORK TOGETHER IN A HOLISTIC.
MANNER -- SO THERE IS NO PER SE.
FULL TIME EQUIVALENT ATTACHED TO
JUST THE WITH CONTRACT -- SO I
HEAR -- THE LA ROSA -- A
STATEMENT THAT THEY WANT TO GIVE
US TIME TO RE EVALUATE HOW MANY.
POSITIONS ARE GONNA GO AWAY
POTENTIALLY THROUGH THE WITH
CONTRACT THAT'S NOT GONNA HAPPEN.
AND I WOULD LIKE TO NOTE THAT IN
TWO THOUSAND ONE WE HAD ABOUT
TWO HUNDRED AND FORTY ONE FULL
TIME EQUIVALENT POSITIONS.
BACK THEN WE STILL HAVE ABOUT
THE SAME TWO HUNDRED AND FORTY
ONE FULL TIME EQUIVALENT SO.
GIVEN THAT THE STRUCTURE OF
FUNDING HAS CHANGED WE STILL
MAINTAIN THE SAME NUMBER OF
EMPLOYEES SO WE ARE NOT A
BLOATED AGENCY.
ARE WE DID NOT ADD MORE PEOPLE
BECAUSE OF THE WEIGHT CONTRACT.
JUSTIN ABLE TO ASK TO BE ABLE --
TO IN ORDER TO TAKE LESS MONEY
FROM THE GENERAL FUND.
BUT GIVEN THAT THE CONTRACT IS
GOING AWAY NOW IT'S CREATING THE
SENSE OF URGENCY WITH.
OUR FUNDING STRUCTURE IN OUR
BUDGET.
THIS WAS IN THE MATH MAN
TREASURE A NOTE FROM THE
ANALYSIS THAT OF AN OUTSIDE
CONTRACTOR WAS HIRED TO DO AN
ANALYSIS OF THE FUNDING
STRUCTURE.
THAT DURING YOUR YOUR TIME AS
TREASURER OF THAT PRIOR TO YOUR
TIME YEAH IT WAS PRIOR TO MY
TIME SO I JUST JANUARY SEVENTH
OF THIS YEAR BUT IF YOU WOULD
LIKE -- THANK YOU CAN TALK ABOUT
THE CRIME STUDY.
SO AND MAYBE IN A DIFFERENT TIME
I AM INTERESTED BECAUSE THIS IS --
TO HOW WORTHWHILE THAT WAS --
AND PERHAPS IT'S SOMETHING WE
SHOULD USE WITH OTHER
DEPARTMENTS OTHER AGENCIES
ANYWAY IT SOME POINT OF AB I'D
BE INTERESTED IN YOUR FEEDBACK
IS TO THAT EXPERIENCE AND AND
WHETHER IT'S SOMETHING WE SHOULD
BROUGHT.
IT UP.
SO [inaudible]
OKAY [inaudible]
THAT'S A THE ONLY -- HAVE DID IT
DAILY -- HAVE AN OPINION WITH
RESPECT TO CONTRACTING OUTSIDE
AGENCY FOR PURPOSES OF ANALYZING
FUNDING STRUCTURE [inaudible]
YOU REMEMBER.
SEEMS REASONABLE HAVE A
CONSULTANT PERFORM THIS TYPE OF
WORK IT -- IT'S PROBABLY MORE
THAN WE CAN EXPECT STATE STAFF
DO YOU GIVE AND JUST SORT OF
THAT THE IN DEPTH NATURE OF THIS
WORKLOAD.
AND SO I THINK IT'S IT'S
PERFECTLY APPROPRIATE THAT THEY
DID SO I THINK THAT I'M OUR
CONCERN WAS JUST THAT.
THE REPORT WAS SO COMPREHENSIVE
AND LOOK AT SO MANY THINGS IT'S
RATHER LENGTHY UNTIL IT
DIFFICULT FOR US TO FULLY
EVALUATE AND AND REALLY REVIEW
THAT AND THE TIME.
AND AND I I I DON'T WANNA
SUGGESTED WASN'T PERFECTLY
APPROPRIATE OR CAST THIS VERSION
I'M JUST.
CURIOUS IS THAT IF THIS IS
SOMETHING THAT WE SHOULD THINK
ABOUT DOING OTHER PLACES SO WE
WE CAN LOOK FOR ANOTHER.
THANK YOU [inaudible]
OKAY.
WELL I THINK THE YOUR ACCEPTANCE
OF BEING ABLE TO REPORT BACK. TO
THE LEGISLATURE ON THE OVERALL
OF RESOURCES AND INCLUDING THE
IMPACT OF LOSING.
WEIGHT -- I THINK THAT'S A
IMPORTANT PART YOU'VE ACCEPTED
YEAH -- SO I WOULD MOVE --
PROPOSAL.
FUN AND FUND ONGOING.
WITH THESE ADDITIONAL
RECOMMENDATION [inaudible]
I MEAN [inaudible]
A MODE.
THAT'S MY MOTION TO YOU TO MOVE
OUT.
THAT'S YOUR HANDS THE YOU WANT
ME TO GO OVER.
YEAH.
RIGHT YEAH.
OKAY YOU SEE NOW -- YEAH ALMOST
EFFORT.
SENATOR RATHER I CENTER NIELSEN
CENTER I'M BURKE.
THANK YOU VERY MUCH THANK YOU --
I KNOW ON THE YES WE'RE GONNA --
JUMP A COUPLE OF ITEMS HERE AND
GO TO THE OFFICE OF TAX APPEALS
ISSUE
[inaudible]
NINETEEN GOOD AFTERNOON
[inaudible]
WELCOME.
HAVE AN INSURED RAZA.
MEMBERS OF THE COMMITTEE -- MY
NAME IS MARK IDLE.
TIME THE STAFF DIRECTOR -- THE
DIRECTOR OF THE OFFICE OF TAX
APPEALS.
AND I'M HERE WITH THE CHIEF
COUNSEL CHRISTIAN KANE ON MY
RIGHT YOUR LEFT.
AND CHIEF DEPUTY.
MARTIN ON MY LEFT YOU'RE RIGHT.
SO WE ARE COMING TO TODAY --
WITH A WORKLOAD REQUEST -- WHICH
IS A AND THE REASON FOR THIS
WORKLOAD REQUEST IN THE MAY
REVISION IS THIS IS THE OUR
SEVENTEENTH MONTH AND THE FIRST
TIME WE'VE HAD A CHANCE TO
ASSESS.
OUR CASELOAD OUR WORKLOAD OVER
THE LAST YEAR -- JUST TO BRIEFLY
DESCRIBE WE HEAR TAX APPEALS
FROM TAXPAYERS -- BASED ON
DECISIONS FIVE FRANCHISE TAX
BOARD.
AND THE CALIFORNIA DEPARTMENT OF
TAX AND FEE ADMINISTRATION WE
OPENED OUR DOORS IN JANUARY OF
TWO THOUSAND EIGHTEEN THEY WERE
NOW IN OUR SEVENTEENTH MONTH WE
HAVE ABOUT NINETY POSITIONS.
ABOUT FIFTY OF HOME OUR
ATTORNEYS WHO ARE BASICALLY A A
LEGAL OFFICE -- AND WE CURRENTLY
HAVE ABOUT FIFTEEN HUNDRED
ACTIVE CASES IN VARIOUS.
THEN THE PROCESS OF GOING
THROUGH THE APPEALS PROCESS.
AND WE HAVE ABOUT THREE HUNDRED
IN THE LAST SEVENTEEN MONTHS
WE'VE HAVE ABOUT.
THREE HUNDRED FINAL OPINIONS
THAT ARE POSTED ON OUR WEBSITE --
THAT HAVE BEEN ADJUDICATED TO
THE PROCESS.
SO WHAT I'D OF IF THIS IS
ACCEPTABLE TO YOU WHAT I'D LIKE
TO HAVE TO DO IS TO HAVE OUR
CHIEF DEPUTY GO THROUGH.
THE FOR INDIVIDUAL COMPONENTS OF
THE BCP I JUST DESCRIBED THEM
BRIEFLY AND THEN I'LL OPEN UP
FOR QUESTIONS ABOUT THE B. C. P..
R. O. OR ANY QUESTIONS YOU MAY
HAVE ABOUT THE OPS ATTACKED.
GOOD AFTERNOON THANK YOU.
THE OFF THE TAX BILL IS
REQUESTING. TWO MILLION SEVEN
HUNDRED SIXTY TWO THOUSAND
DOLLARS WHICH INCLUDES PERMANENT
POSITION OR EIGHT OR THIRTEEN
POSITION.
AND ALSO FUNDING TO HELP SUPPORT
OUR BILLS PROCESSING EDUCATION
AND AGENCY OPERATIONS.
THAT MEANS FOR THE HEARINGS
DIVISION -- T. REQUEST FUNDING
AND PERMANENT POSITION OR DEEPER.
TO ADMINISTRATIVE LAW JUDGE
REPOSITION.
AND FUNDING TO SUPPORT THREE
CLASSIFICATION OF TO EXISTING
ADMINISTRATIVE LAW JUDGE ONE
POSITION TO THE A OKAY THREE
LEVEL.
HEARINGS DIVISION IS RESPONSIBLE
FOR HEARING AND DECIDING TAX
BILLS ARISING FROM TAXPAYER
DISPUTES.
OF ACTIONS TAKEN BY THE TAX
AGENCY.
L. DAYS REQUIRED TO RESEARCH AND
PREPARE LEGAL OPINIONS FOR THE
FRANCHISE TAX BOARD.
A FRIEND HAS AN INCOME TAX CASES
THAT ARE ADMINISTERED BY THE TV
AND ALSO THE BUSINESS TAX CASES
ADMINISTERED BY THE CITY TFA.
IN OUR FOUNDATIONS DIVISION.
WE'RE REQUESTING FUNDING AND
PERMANENT POSITION OF AUTHORITY.
OR FIVE ATTORNEYS. ONE ATTORNEY.
FIVE ONE TAX COUNSEL. FOR TO TAX
COUNSEL THREES AND ONE TAX
COUNSEL.
ALSO ONE BUSINESS TAX
SPECIALISTS.
THREE AND ONE STEP SERVICES
ANALYST.
O. T. A.'S FOUNDATION DIVISION
ATTORNEYS PROVIDE HIGHLY
TECHNICAL.
ACTUAL LEGAL ANALYSIS.
REQUEST ADDITIONAL BRIEFING TO
COMPLETE THE CASE RECORD.
THE ALSO THE REST THEIR CASES
HEARINGS BEFORE PANELS AVAIL.
IN OUR CASE MANAGEMENT DIVISION.
WE'RE REQUESTING FUNDING IN
PERMANENT POSITION OF FORTY OR
ONE ASSOCIATE GOVERNMENTAL
PROGRAM ANALYST.
AND ONE SSA STAFF SERVICES
ANALYSTS TO SUPPORT THE GROWING
WORKLOAD ASSOCIATED.
IT FEELS PROCESSING -- TEASE
CASE MANAGEMENT DIVISION IS
RESPONSIBLE FOR THE OVERALL
INITIAL DEALS.
ADMINISTRATION.
COMPROMISING INTAKE ANALYSIS
INFORMATION GATHERING AND
EXCHANGE PURPLE THE P. T. AND IT
FEELS.
LAST OUR ADMINISTRATION DIVISION
WE'RE REQUESTING FUNDING FOR
PERMANENT POSITION OF FORTY FOUR
THE STAFF SERVICES ANALYSTS IN
OUR BUSINESS SERVICES UNIT.
AND ONE ASSOCIATE GOVERNMENTAL
PROGRAM ANALYST IN THE HUMAN
RESOURCES UNIT -- TIAS
ADMINISTRATION DIVISION IS
RESPONSIBLE FOR PROVIDING FISCAL
OVERSIGHT AND PERFORMING
PERSONAL MANAGEMENT INFORMATION
TECHNOLOGY.
AND BUSINESS SERVICE FUNCTIONS
THAT SUPPORT THE AGENCY'S
OVERALL OPERATION.
YOUR PRIVILEGE THIS REQUEST.
PLACE -- TA IN A POSITION WHERE
WORK BOTH PROCESS. FOR MORE
ADEQUATELY BALANCED TO
SUFFICIENT STAFF RESOURCES
AGENTS [inaudible]
THANK.
OKAY -- DELAY -- KIRSTEN WITH
THE LA NO WE HAVE NO CONCERNS
WITH THE PROPOSAL.
SILBERMAN FINANCE WE WERE
[inaudible]
IN.
THE LIST THE LAST A GROUP.
I'M INTERESTED LESSONS LEARNED
AND AND I AND I RECEIVED AN
ANALYSIS THAT.
JUST AS WE WOULD EXPECT THINGS
WEREN'T QUITE AS EXPECTED SO I'D
BE INTERESTED NOT TODAY BUT AT
SOME POINT THE FUTURE.
JUST HEARING FROM YOU AS TO WHAT
LESSONS WE'VE LEARNED THIS WHAT
WE CAN USE.
IN THE FUTURE.
WHY?
AGAIN I'M NOT CASTING ASPERSIONS
I WOULD EXPECT THAT.
YOU KNOW ONE CAN'T KNOW UNTIL.
ONE CHANGES THE ORGANIZATION IS.
TO WHAT POSITIONAL CHALLENGES
EXIST BUT IF YOU LET ME KNOW AT
SOME POINT.
AMONG THE THREE OF US THERE'S SO
MANY LESSONS LEARNED I WOULD
HAVE TO CALL THE LESS IN TERMS
OF THE BEACON OF THE ISSUES.
PROBLEMS THE THINGS THAT THE
STAFF TO JACK BOOTED CENTER
[inaudible]
RIGHT.
SO WE'D BE HAPPY.
TO CONTACT YOUR OFFICE IN AND
AND HAVE A DISCUSSION WITH
[inaudible]
WELL.
NOW YOU REYES MOTHER TASK OF IT
MAYBE IT'S USEFUL FOR YOU TO PUT
THOSE LESSONS LEARNED TOGETHER --
SO THAT THEY'RE NOT LOST THE
EXPERIENCE THAT YOU GAIN
[inaudible]
IN BE.
PROVIDED THE OTHERS SO TO THE
EXTENT THERE ARE THINGS THAT WE
DO BETTER.
WE DO THAT BETTER BE HAPPY TO DO
IT OKAY THANKS.
OKAY PUBLIC COMMENT.
HEARING NONE -- IS THERE A
MOTION.
TEMPORADA THANKS HERE NIELSEN
THERE ARE A NUMBER.
THANK YOU VERY MUCH
.
WE'RE MOVING ON TO CANNABIS
RELATED ISSUES NUMBER.
SEVENTEEN CLIN CALENDAR.
FINANCE I'M HERE TODAY TO
PROVIDE AN OVERVIEW OF THE
ADMINISTRATION'S CANNABIS.
TAX ONE PACKAGE AND TALK ABOUT
SOME OF OUR TRAILER BILL ISSUES
THAT WE'RE PROPOSING THE MARY
VISION.
AS APPROVED AND POSITION SIXTY
FOUR EXCISE TAXES ARE LEVIED ON
THE CULTIVATION AND RETAIL SALES
BOTH ADULT USE A MEDICINAL
CANNABIS.
TAX REVENUES BEING DEPOSITED
INTO THE ANIMUS TAX PLAN.
CANNABIS EXCISE TAX FORECAST IS
GENERATED IT IS FORECAST TO
GENERATE.
IN NINETEEN AND THREE AND FIFTY
NINE NINE DOLLARS IN NINETEEN
TWENTY WHICH IS A REDUCTION FROM
THE GOVERNOR'S BUDGET.
IT'S IMPORTANT TO NOTE THAT FOR
THE NEAR TERM.
REVENUE ESTIMATES ARE SUBJECT TO
SICKENING IN UNCERTAINTY BECAUSE
OF A RECENTLY ESTABLISHED MARKET.
PROPOSITION SIXTY FOUR ALSO
SPECIFIED THE ALLOCATION OF
RESOURCES IN THE CAMPUS TAX FUND
WHICH ARE CONTINUOUSLY
APPROPRIATED.
AND ARE PRIORITIZE IS FOLLOWED.
ALLOCATION ONE GOES TO
REGULATORY AND ADMINISTRATIVE
WORKLOAD RELATED TO IMPLEMENTING
THE ACT.
THE MAYOR REVISION PACKAGE
INCLUDES FIFTEEN POINT SIX
MILLION DOLLARS TO PROVIDE
GRANTS TO LOCAL GVERNMENTS TO
ASSIST IN THE CREATION AND
ADMINISTRATION OF EQUITY
PROGRAMS.
THE GOVERNOR'S OFFICE OF
BUSINESS AND ECONOMIC
DEVELOPMENT WILL ADMINISTER THE
GRANT PROGRAM ON BEHALF OF THE
ENEMY CONTROL.
ALLOCATION TO WHICH GOES TO
RESEARCH ACT AND ACTIVITIES
RELATED TO THE LEGALIZATION OF
CANNABIS AND THE PAST EFFECTS OF
ITS CRIMINALIZATION -- WE DON'T
INCLUDE ARE WE DON'T HAVE ANY
PROPOSED CHANGES TO THAT
ALLOCATION AND OUR CURRENT
PACKAGE.
AND THEN ALLOCATION THREE WHICH
IS AVAILABLE FOR EXPENDITURE THE
FIRST TIME IN.
NINETEEN TWENTY WE ESTIMATE A
HUNDRED AND NINETY EIGHT POINT
EIGHT MILLION DOLLARS WILL BE
AVAILABLE FOR THESE ACTIVITIES
IN.
NINETEEN TWENTY I'M GONNA GO
THROUGH.
THESE THERE'S THREE MAIN
COMPONENTS AN ALLOCATION THREE I
WILL CITE DOLLAR AMOUNTS BUT
IT'S IMPORTANT TO NOTE THAT
THOSE ARE ACTUALLY ESTIMATES.
WHAT WILL BE AVAILABLE IS
ACTUALLY BASED ON THE FINAL --
TWO QUARTER PAYMENTS.
FOR EIGHTEEN NINETEEN AND SO THE
FIRST.
COMPONENT IS 60% OR A HUNDRED
NINETEEN POINT THREE MILLION
DOLLARS TO EDUCATION PREVENTION
AND TREATMENT OF USE SUBSTANCE
USE DISORDERS AND SCORE TENSION.
WITHIN THIS COMPONENT TWELVE
MILLION DOLLARS WILL GO TO THE
I'M IN A PUBLIC TO OR CANNABIS
MONITORING AND EDUCATION
ACTIVITIES.
WITH THE REMAINING 75% ESTIMATED
TO BE EIGHTY FIVE POINT. EIGHTY
POINT FIVE MILLION DOLLARS. TO
THE PART OF THE EDUCATION TO
SUBSIDIZE CHILD CARE OF INCOME
ELIGIBLE FAMILIES TO KEEP THE
CHILDREN OCCUPIED IN ENGAGED IN
A SAFE ENVIRONMENT THAT'S
DISCOURAGING POTENTIAL USE OF
SUBSTANCES.
THE REMAINING 20% OR TWENTY ONE
AND A HALF MILLION DOLLARS WILL
GO TO THE FARM OF HEALTH CARE
SERVICES BURKE COMPETITIVE GRANT
PROGRAM. TO DEVELOP AN
IMPLEMENT NEW YOUTH PROGRAMS IN
THE AREAS OF EDUCATION
PREVENTION AND TREATMENT OF
SUBSTANCE USE DISORDERS.
AND THE REMAINING 5% OR FIVE
POINT THREE MILLION DOLLARS TO
SUPPORT USE COMMUNITY ACCESS
GRANTS FROM THE NATURAL
RESOURCES AGENCY.
THE NEXT COMPONENT IS 20%.
WHICH WILL GO BORN AND WHAT
WHICH WE ESTIMATE AT THIRTY NINE
POINT EIGHT MILLION DOLLARS WILL
GO TO THE CLEAN UP REMEDIATION
ENFORCEMENT OF ENVIRONMENTAL
IMPACTS BE TO BUY ILLEGAL
CANNABIS CULTIVATION.
WITHIN THIS COMPONENT 60% OR
TWENTY THREE POINT NINE MILLION
DOLLARS WILL GO TO THE PARTNER
FISH AND WILDLIFE.
OF WHICH THIRTEEN POINT EIGHT
MILLION WILL GO TO CLEAN UP
REMEDIATION RESTORATION EFFORTS.
IN TEN POINT ONE MILLION DOLLARS
WILL GO TO ENFORCEMENT
ACTIVITIES.
THE OTHER 40% OR FIFTEEN POINT
NINE MILLION DOLLARS WILL GO TO
THE DEPARTMENT OF PARKS AND
RECREATION.
OF WHICH SEVEN POINT ONE MILLION
DOLLARS WE USED A SURVEY THE
IMPACTS AND IDENTIFIED OWN
UNKNOWN AREAS OF CANNABIS
CULTIVATION. FIVE POINT SIX
MILLION DOLLARS WILL GO TO
REMEDIATION RESTORATION
ACTIVITIES AND THREE POINT TWO
MILLION DOLLARS WILL GO TO ROADS
AND TRAILS TO MAKE -- ILLEGAL
GROWS ACCESSIBLE TO IS OFFICER
PATROL.
AND THEN THE FINAL 20% ALSO
THIRTY NINE POINT EIGHT MILLION
DOLLARS WILL GO TO PUBLIC SAFETY
RELATED ACTIVITIES.
FIRST TWO POINT SIX MILLION
DOLLARS WILL GO TO THE
CALIFORNIA HIGHWAY PATROL FOR
TRAINING AND RESEARCH AND POLICY
DEVELOPMENT.
RELATED TO IMPAIRED DRIVING AND
OR A MINISTRY TO SUPPORT.
THE REMAINING 30%. ELEVEN POINT
TWO MILLION DOLLARS WILL GO TO
SEE HP PRINT IMPAIRED DRIVING IN
TRAFFIC SAFETY GRANT PROGRAM TO
NON PROFITS AND LOCAL
GOVERNMENTS AS AUTHORIZING
PROPOSITION.
SIXTY FOUR AND THE REMAINING 70%
WALL.
ESTIMATE AT TWENTY SIX BILLION
DOLLARS WILL GO TO THE BOARD OF
STATE MANY CORRECTIONS FOR
COMPETITIVE GRANT PROGRAM. TO
LOCAL GOVERNMENTS THAT HAVE NOT
BANNED CANNABIS CULTIVATION A
RETAIL ACTIVITIES.
WHICH WILL PRIORITIZE LOCAL
PARTNERSHIPS FOCUSED ON
PREVENTION [inaudible]
GEN.
OF YOUTH.
USE PROGRAMS AND THE
COLLABORATIVE ENFORCEMENT
EFFORTS AIMED AT COMBATING
ILLEGAL AND THE SCHOOL DIVISION
SALES.
AND THE MAYOR VISION ALSO
INCLUDES SOME TRAILER BILL.
LANGUAGE OUR ASKING. TO ENACT.
A CURSE IS SOME CLAMP RELATED TO
THAT CANNABIS CONTROL DEALS
PANEL.
WE WOULD LIKE TO STREAMLINED
PROVISIONAL LICENSES AND
ENHANCED EQUITY GRANT PROGRAM
THAT WAS.
AUTHORIZED IN SB TWELVE NINETY
FOUR STRENGTH AND ADMINISTRATIVE
PENALTIES FOR UNLICENSED
INTEREST ACTIVITY AND EXTEND THE
EXISTING SEE EXEMPTION.
THIS INCLUDES MY COMMENT AND I'M
HAPPY TO ANSWER ANY QUESTIONS
OBVIOUSLY THIS IS A BROAD
PACKAGE SO DO MY BEST AND IF
THERE ARE CERTAIN AREAS THAT ARE
OUTSIDE MY EXPERTISE.
WILL BE OUR WE'LL GET BACK.
TO OKAY.
LA -- THANK YOU WITH THE
LEGISLATIVE ANALYST'S OFFICE
WE'VE PREPARED A VERY SHORT HAND
OUT FOR YOU AND THE TOTAL YOU
HAVE A COPY.
OF A SURGEON I HAVE A FEW EXTRAS
IF NECESSARY I'M TO SKIP OVER
THE FIRST TWO PAGES BECAUSE THEY
REALLY JUST SUMMARIZE -- WHAT IS
PACKAGES WHICH -- FINANCE
PROVIDED A VERY IN DEPTH
SUMMARIES I WANT WITH KEEP BACK.
AND IF YOU TURN TO PAGE THREE
THERE'S JUST A VISUAL
REPRESENTATION OF THAT
ALLOCATION THERE'S A TABLE THAT
JUST SHOWS -- BASICALLY VISUALLY
WHAT -- WHAT FINANCE DESCRIBED --
COUPLE THINGS TO HIGHLIGHTED HE
MENTIONED THIS IS THE FIRST TIME
THERE'S SPENDING THIS EQUITY
PROGRAM COMING OUT OF ALLOCATION.
ONE AND THIS IS THE FIRST TIME --
THERE WILL BE -- FUNDING
PROVIDED ALLOCATION THREE
ACTIVITIES YOU CAN SEE THAT --
IN THE TABLE HERE.
IF YOU TURN TO PAGE FOUR I WOULD
BEGIN OUR COMMENTS FOR
LEGISLATIVE CONSIDERATION WE
HAVE A FEW THINGS WE JUST WANTED
TO HIGHLIGHT FOR THE COMMITTEE.
I THE FIRST IS REALLY THAT THIS
PLAN REFLECTS THE GOVERNOR'S
PRIORITIES SO IN MANY CASES THE
LANGUAGE OF PROPOSITION SIXTY
FOUR IS RATHER BROAD.
AND IT ALLOWS A VARIETY OF
POSSIBLE ACTIVITIES AND SO
REALLY THIS PACKAGE REPRESENTS.
THE GOVERNOR'S PRIORITIES FOR
THOSE THOSE BENDING CHOICES.
AND SECOND WE WOULD NOTE THAT IN
GENERAL IT SEEMS THAT THIS
PACKAGE IS CONSISTENT WITH
PROPOSITION SIXTY FOUR ARE THERE
A COUPLE OF PLACES WHERE THERE'S
A LITTLE BIT OF UNCERTAINTY
PERHAPS -- IN IN TERMS OF THE
CONSISTENCY JUST WANTED TO
HIGHLIGHT THOSE ONE IS THE USE
OF THE ALLOCATION ONE FOR EQUITY
PROGRAMS -- THAT'S REALLY TO GO
FOR REGULATORY PURPOSES AND SO --
AND AND AND SO THAT'S A LITTLE
BIT -- UNUSUAL THERE AND THEN
THE SECOND PIECES OUT USING
ALLOCATION PREDEFINED CHILD CARE
SPOT SAID JUST WANTED.
TO AS IF THE LEGISLATURE'S
INTERESTED COULD CERTAINLY ASK
ADMINISTRATION ABOUT ITS
RATIONALE FOR USING THE FUNDS
FOR THIS PURPOSE THAT'S THE NEXT
THING WE WANTED TO HIGHLIGHT IS
THAT THERE'S SOME UNCERTAINTY
REGARDING THE LEGISLATIVE ROLE
IN DIRECTING THESE FUNDS.
AS WELL AS FINANCE MENTION THESE
FUNDS ARE CONTINUOUSLY
APPROPRIATED SO THE LEGISLATURE
DOESN'T HAVE TO TAKE ACTION TO
APPROPRIATE THE FUNDS.
I'M AND THERE'S SOME LACK OF
CLARITY ABOUT IN THE LANGUAGE
ABOUT EXACTLY HOW MUCH THE
LEGISLATURE CAN DIRECT THE FUNDS.
I'M HOWEVER WE DO KNOW THAT WE
THINK THE LEGISLATURE PLAYS A
VERY IMPORTANT OVERSIGHT ROLE
REGARDLESS OF OF HOW MUCH YOU
CAN DIRECT THE FUNDS
SPECIFICALLY.
I'M WE RAISE SOME SPECIFIC
QUESTIONS THAT WE THINK ARE THE
LEGISLATURE MAY WANT TO CONSIDER.
STE ONE HERE ON THE BOTTOM OF
EACH FOR IS WHETHER THE
ADMINISTRATION IS PROVIDED
SUFFICIENT INFORMATION ON IT
IMPLEMENTATION PLAN.
WE NOTETHAT THIS PLAN INCLUDES
FOR THE FIRST TIME I FUNDING FOR
SOME NEW PROGRAMS AS WELL AS A
SIGNIFICANT EXPANSION OF SOME
EXISTING PROGRAMS.
AND SO THE LEGISLATURE'S GONNA
WANNA MAKE SURE IT IT'S
UNDERSTANDS AND IS COMFORTABLE
WITH THOSE DECISIONS AND
UNDERSTANDS FOR EXAMPLE WHAT
POPULATIONS ARE GONNA BE SERVED.
AND YOU KNOW HOW THESE HOW THESE
FUNDS WILL GO OUT THOSE KINDS OF
THINGS AND SOME CASES -- THERE
THESE PROGRAMS ARE STILL UNDER
DEVELOPMENT TO DO SO.
THE KINDS OF THINGS THAT ARE ARE
STILL IN SOME CASES BEING WORKED
OUT.
ADDITIONALLY WE WOULD NOTE THAT
THE ADMINISTRATION IS PROPOSING
A ROUGHLY A HUNDRED AND EIGHTY
NEW POSITIONS TO IMPLEMENT THIS --
THIS PACKAGE OF THE LEGISLATURE
GONNA ENSURE THAT IT HAS
SUFFICIENT INFORMATION TO ASSESS
THOSE POSITIONS THERE WEREN'T --
TRADITIONAL BUDGET CHANGE
PROPOSALS ASSOCIATED WITH THOSE
AND SO ON THIS OF THE KINDS OF
OF THING VILLAGES YOU'RE GOING
TO WANT TO MAKE SURE IT
UNDERSTANDS -- IN THE CASES
WHERE THE LEGISLATURE DOESN'T
FEEL LIKE IT HAS SUFFICIENT
INFORMATION TO UNDERSTAND HOW
THESE PROPOSED ACTIVITIES WOULD
OCCUR OR THESE PLANS OUT
CERTAINLY WE THINK IT'S
APPROPRIATE. TO HAVE THE
DEPARTMENT'S REPORT BACK AT AT
HEARING SUCH AS THIS ONE ON
THOSE PLANS.
THE NEXT MAJOR SET OF QUESTIONS
WE THINK THE LEGISLATURE MIGHT
WANT TO ASK ABOUT WHAT OUTCOMES
THE DEPARTMENTS ARE EXPECTING TO
ACHIEVE WITH THESE FUNDS.
SO THIS YEAR IN NINETEEN TWENTY
THE IT'S EXPECTED THAT ABOUT TWO
HUNDRED MILLION WILL BE
AVAILABLE FOR THESE ALLOCATION
THREE ACTIVITIES THAT COULD
CERTAINLY GROW OVER TIME IS THIS
MARKET MATURES.
SO WE'RE TALKING ABOUT A
SIGNIFICANT AMOUNT OF FUNDING
THAT'S AVAILABLE AND THE
LEGISLATURE MAY WANT TO MAKE
SURE THAT IT'S COMFORTABLE ON
THAT THE ADMINISTRATION HAS
APPROPRIATELY -- IDENTIFIED
OUTCOMES THIS WILL HELP THE
LEGISLATURE MAKE SURE THAT CAN
HOLD THE ADMINISTRATION
ACCOUNTABLE -- FOR WHAT IT'S
ACHIEVING.
IN CASES WHERE THE
ADMINISTRATION HS AND IDENTIFY
THOSE OUTCOMES EITHER THE
LEGISLATURE COULD DIRECT THE
ADMINISTRATION TO DO THAT OR IT
COULD BE EXPRESSED LEGISLATIVE
INTENT -- REGARDING ITS OWN
GOALS FOR THE PROGRAM.
AND THEN FINALLY -- THE QUOTE
THE LAST QUESTION THAT WE
HIGHLIGHT IS HOW ON THE
IMPLEMENTATION OUTCOMES WILL BE
MONITORED AND EVALUATED.
I'M SO WE CERTAINLY THINK IT'S
APPROPRIATE FOR THE LEGISLATURE
TO ASK THE ADMINISTRATION TO
TRACK I'M NOT ONLY SAID OUTCOME
MEASURES BUT ALSO TRACK HOW IT'S
ACHIEVING THOSE -- FOR EXAMPLE
THE THE LEGISLATURE MIGHT WANT
THAT REQUIRE THE ADMINISTRATION
TO PROVIDE OUTCOME ONGOING
REPORTING ON WHAT IT'S DOING
WITH THESE FUNDS WHAT OUTCOMES
HAVE BEEN ACHIEVED -- WE ALSO
KNOW JUST ON A TRAILER BILL --
IT IT CAME ALONG WITH THE MAYOR
VISION PACKAGE -- IT PRESENTS A
NUMBER POLICY CHOICES FOR THE
LEGISLATURE -- IT PROBABLY TRADE
OFFS ASSOCIATE WITH A VARIETY OF
THOSE -- AND CERTAINLY IF THE
LEGISLATURE WANTS ADDITIONAL
TIME WITH THAT AND IT'S PROBABLY
NOT NECESSARY FOR IT TO BE PART
OF THE BUDGET PACKAGE YOU COULD
BE -- SEPARATED OUT IF IF THAT
WAS PREFERRED.
THANK YOU -- WITH.
COULD YOU GO THROUGH EACH OF
THOSE ISSUES PLEASE AND RESPOND --
I ACTUALLY DON'T HAVE THE HAND
OUT IN FRONT OF ME HERE
[inaudible]
THANK YOU -- I THINK.
AS IT RELATES TO SOME OF THE
GENERALLY COULD SCENES
CONSISTENT -- I THINK WE DO
THINK THAT THEY ARE IN FACT
CONSISTENT WITH THE INTENTIONS
AND ALLOWABLE USES UNDER PROP
SIXTY FOUR FOR BOTH THE EQUITY
PROGRAM AND THE CHILD CARE SPOTS --
EQUITY PROGRAMS FUNDED THROUGH
THE BEER OF CANS CONTROL IF YOU
READ THE STATUTORY.
USES THEY CAN GO TO ADMINISTER
IMPLEMENT ENFORCE -- ACTIVITIES
THAT ARE AUTHORIZED UNDER THE
BEING PICO TWENTY SIX THOUSAND
THE EQUITY PROGRAM IS WITHIN
THAT CODE -- AND WE THINK THAT
THAT MAKES SENSE -- THE CHILD
CARE SLIDES -- ARE FUNDED OUT OF
THE USE PROGRAM AND IT BASICALLY
SPECIFIES THAT THAT THE PROGRAM
SHALL EMPHASIZE ACCURATE
EDUCATION EFFECTIVE PREVENTION
EARLY INTERVENTION SCHOOL
RETENTION AND TIMELY TREATMENT
SERVICES FOR YOUTH THEIR
FAMILIES THEIR CAREGIVERS.
ALSO AGAIN WE THINK THAT --
SUBSIDIZING CHILD CARE FOR
INCOME ELIGIBLE FAMILIES TO KEEP
THESE CHILDREN IN OCCUPIED
ENGAGED IN SAFE ENVIRONMENTS AND
US -- DISCOURAGING SUBSTANCE USE
DISORDER DOES MAKE SENSE AND
IT'S CONSISTENT WITH PROPOSITION --
SIXTY FOUR I THINK THAT'S WHAT
I'VE HEARD THE MOST.
CONCERN.
IT IS THE IS THE ISSUE OF KIND
THE CHILDCARE SLOTS WITH THIS.
UNDERSTANDABLE BUT I DEFINITELY
THINK THAT IT'S FITS WITHIN THE
ALLOWABLE USES BUT A YOU KNOW
ADMITTEDLY IT'S THAT.
PROBABLY ISN'T ON THE FOREFRONT
OF PEOPLE'S MINDS WHEN THEY READ
READ THE LANGUAGE -- SO.
THE LEGISLATURE PLAYING -- AN
OVERSIGHT ROLE -- I THINK THE
ADMINISTRATION IS.
DOING -- OUR BEST HERE TO BE --
PARTNERS WITH THE LEGISLATURE
WHERE SHARING -- THROUGH THE
EIGHT PAGES WE HAVE LIKE A TEN
PAGE DOCUMENT WE'VE BEEN MEETING
WITH STAFF HOT AND DOING SOME
BACK AND FORTH TO MAKE SURE THAT
THEY HAVE THE INFORMATION
AVAILABLE SO WE UNDERSTAND
WITHIN THE EXPENDITURE PLAN.
BUT ALSO REALIZING THAT THIS IS.
A LITTLE AND TRADITIONAL IN THAT
IT'S CONTINUOUSLY APPROPRIATED --
FINDING -- IN THAT.
PROPOSITION SIXTY FOUR BASICALLY.
TOLD US THAT THIS MONEY WOULD
BECOME AVAILABLE WE SHOULD
GENTLY SPEND ON THESE ACTIVITIES
AND THEN ACTUALLY DETERMINED
WITHIN THESE COMPONENTS WHO
SHOULD SELECT WHAT THOSE
ACTIVITIES SHOULD BE SO -- I
THINK WE'RE HAPPY TO CONTINUE
THESE CONVERSATIONS AND TRY --
TO KEEP DOING THAT THROUGH THE
BUDGET PROCESS AND YOU KNOW I
THINK WE SHARE IN THE CONCERN OF
MAKING SURE THAT THESE
INVESTMENTS GO -- TO MEANINGFUL
OUTCOMES ABOUT WE HAVEN'T%
ACTUALLY DONE ANYTHING FORMALLY
I WOULD SAY YOU TO SORT OF
SOLIDIFY THAT.
SO HAVE YOU THOUGHT OF MORE
SPECIFIC WAYS IN WHICH ON A ON
GOING BASIS THE LEGISLATURE.
WOULD BE INVOLVED OR I AGAIN I
THINK WE'RE DOING THAT RIGHT NOW --
WITH THE RELEASE OF THE MAY
REVISION SHARING THIS
INFORMATION SHARING OUR PLANS
THROUGH -- NARRATIVE DOCUMENTS
MEETING WITH FOLKS -- AND SO I
THINK WE ARE TRAINED TO KEEP THE
LEGISLATURE AND INVOLVED AND
ENGAGED BY ALSO RECOGNIZED THAT
IS SLIGHTLY DIFFERENT BUT IT'S
NOT A BUDGET ACT PREPARATION.
AND NOT AND GOING TO THAT
TRADITIONAL PROCESS BUT WE'RE
HAPPY TO ENGAGE IN WHAT AND
WHATEVER WAYS THROUGH HEARINGS
AND HAVING THESE CONVERSATIONS
LIKE WE ARE TODAY.
AND TO MAKE SURE THAT YOU HAVE
FULL UNDERSTANDING WHAT WE'RE
TRYING TO DO.
OKAY BOOM I THINK THERE'S A FEW
MORE OF WITH REGARDS TO ONE
HUNDRED EIGHT THIS THE STAFFING
THE IMPLEMENTATION IN THE
STAFFING.
YES SO -- THERE ARE A HUNDRED
EIGHTY POSITIONS I THINK -- A
SIGNIFICANT PORTION OF THOSE WE
HAVE PROVIDED SORT OF AT LEAST --
I'VE OF PARAGRAPH OR SO PER
PHYSICIAN OR GENTLY WHAT THOSE
POSITIONS WILL BE DOING FOR A
SIGNIFICANT PORTION OF THE GOES
AND SOME OF THOSE ARE REALLY --
I WOULD SAY THAT THE POSITIONS
KIND OF FALL INTO SIN GENERAL
CATEGORIES OF GRANT
ADMINISTRATION AND ADDITIONAL
SORT OF ENFORCEMENT ACTIVITIES
THAT ARE TAKING PLACE TODAY OR
THAT WILL HELP FURTHER SORT OF
ACTIVITIES THAT WERE SPECIFIED
IN PROPOSITION.
SIXTY FOUR SO I DO THINK THAT WE
HAVE PROVIDED GENERALLY --
INFORMATION ABOUT THOSE
POSITIONS WHAT THEY'LL BE DOING --
AND I THINK THEY ARE SORT OF
CONSISTENT WITH WHAT WAS
INTENDED UNDER PROPOSITION.
SIXTY FOUR AND WITH REGARD TO
THE OUTCOMES THE YOU COULD CHECK
OUT HOW WILL YOU GET TO THOSE IN.
DEVELOP THOSE OUTCOMES -- AS I
KIND OF MENTIONED THAT SOME OF
THESE ALREADY I THINK HAVE IT
REALLY JUST DEPENDS ON THE
INDIVIDUAL PROGRAM AND WHAT
WE'RE TRYING TO ACHIEVE I THINK
EACH ONE OF THEM.
HAS IS WAS SELECTED -- BECAUSE
ONE WE'VE ALREADY SAID THAT IT'S
A WORKING PROGRAM AND WE WANT TO
INVEST MORE IN THAT AREA BECAUSE
WE RECOGNIZE THERE'S A NEED --
OR THAT WE SHARED SHARING YOUR
INTEREST OF MAKING SURE THAT WE
HAVE IMPROVED OUTCOMES BUT SOME
OF THESE ARE SO NEW THAT WE
HAVEN'T RELEASED IT UP.
A COUPLE OF LIKE THREE OF THESE
GRANT PROGRAMS I THINK THIS IS
PROBABLY A LITTLE PREMATURE TO
DETERMINE WHAT OUTCOMES WILL
ULTIMATELY BE CHEATED BUT WE'RE
GOING TO CONTINUE TO MONITOR AND
TRY TO MAKE IMPROVEMENTS IN
THOSE AREAS.
YES SIR TO SEEMS LIKE IF YOU'RE
NOT SURE WHAT THE OUTCOMES ARE
THAT YOU WANTED CHIEF HOW DO YOU
COME UP WITH A NUMBER OF A
HUNDRED EIGHTY POSITIONS.
YEAH THOSE HUNDRED EIGHTY ARE
SPREAD ACROSS ACROSS A LOT OF
AREAS I THINK GENERALLY THE MOST
OF THEM FALL INTO THE
ENFORCEMENT -- OF ILLEGAL
CULTIVATION AND REMEDIATION AND
CLEAN UP ACTIVITIES AND THE
RESOURCES BUCKET.
OUR COMPONENT OCASIONES SORRY --
AND SO I THINK THAT AGAIN AND
SOME OF THOSE FISH AND WILDLIFE
IN PARTICULAR ALREADY HAS SOME
OF THOSE POSITIONS AND IS DOING
SOME OF THAT WORK TODAY SO IT'S
REALLY JUST AN EXPANSION OF
EXISTING ACTIVITY -- AND I THINK.
I THINK THOSE DEPARTMENTS WOULD
TELL YOU THAT THERE'S A
SIGNIFICANT AMOUNT OF ILLEGAL
CULTIVATION -- THAT IS OUT THERE
THAT NEEDS TO ONE BE ENFORCED
AGAINST AND THEN AFTER BE
REMEDIATED AND CLEANED UP AND SO
I THINK THIS IT WILL HLP US.
YOU KNOW START TO MOVE TOWARD
THAT BUT I DON'T THINK IN ANYWAY
IT'S YOU KNOW IN A STE POLICE
ALL OF THE PROBLEM.
I FIGURE WITH.
WOULD BE HELPFUL TO GET -- WHAT
YOU EXPECTS SPRINGS HAS BEEN UP
UNTIL NOW?
WHAT YOU HAVE ACHIEVED WHAT
YOU'RE?
YOU KNOW I THINK IT GIVES US A
BASE FROM WHICH IS THE OKAY.
THIS MAKES SENSE HUNDRED EIGHTY
OR NINETY WHATEVER IN THE IN THE
DIFFERENT WAYS THAT YOU'RE HERE
ALLOCATED STUFF.
BUT IT'S WHEN YOU WILL ONLY SEE
IS A HUNDRED EIGHTY NEW
POSITIONS BUT NOT KNOWING WHAT
IS LINKED TO AND I THINK MAKES
IT [inaudible]
MORE DIFFICULT.
A DIFFICULT FOR US IS THE
LEGISLATURE.
IN A WE HAVE SHARED SOME
ADDITIONAL DETAILS WITH THE LA --
AND STAFF ON SOME OF THESE
PIECES.
AND SPEAKING TO THE HUNDRED AND
EIGHTY I I DON'T KNOW OFF THE
TOP OF MY HEAD THE NUMBER THAT
WE'VE SHARED SOME OF THOSE
DETAILS BUT I WOULD SAY IT'S
OVER 50% OF THOSE.
WE'VE SHARED -- KIND OF IT WHAT
WHAT ACTIVITIES WILL BE TAKING
PLACE AND THEN LIKE IT'S IN SOME
OF THESE OTHER ONES ARE SMALLER
AND IT'S MORE A GRANT
ADMINISTRATION.
TYPE OF ACTIVITY MORE
ADMINISTRATIVE WORK [inaudible]
SENATOR YES.
I'D LIKE TO EXPAND A LITTLE BIT
ON THE CONCERNED JUST RAISED.
BUT THE CHAIR AND AND ON OTHERS
AS WELL.
THIS IS A VERY MAJOR.
POLICY CHANGE IN THE HISTORY OF
CALIFORNIA.
AND HOW CALIFORNIA IS GOING TO
CONDUCT ITS BUSINESS AND RAISE
OUR CHILDREN.
THE SOCIETAL IMPACTS ARE VERY
SIGNIFICANT.
SO THE IMPLEMENTATION CANNOT BE
TAKEN CASUALLY.
IN MY OPINION.
IS IT ANTICIPATED THAT.
ACTIONS WILL BE TAKEN TO THE
REGULATORY PROCESS AS YOU
PROMULGATE.
AS YOU MOVE AHEAD THE POLICIES.
TO TO HANDLE CANNABIS IN
CALIFORNIA WILL THEY BE DONE
REGULATORY EARLY.
IS THAT A PART OF IT -- WELL
THAT THREE MAIN LICENSING
ENTITIES -- DID -- COMPLETE
THEIR FINAL REGULATIONS IN
JANUARY I THINK TWO THOUSAND OLD
REGULATIONS ARE GOING TO
CONTINUE TO BE A PART.
YEAH YEAH I MEAN I DO THINK THAT
THAT'S TYPICAL FOR THERE'S ALL
KIND OF THINGS ARE GOING TO COME
UP AS THIS MOVES ALONG AND IT
NEEDS TO BE DONE REGULATORY NOT
BY FIA.
MEANING YOU TO STILL PUT OUT A
MEMO AND SAYING THIS IS A NEW
DEAL YOU'VE GOT A REGULATION.
AND A STATUTE TO SUPPORT.
THE REGULATIONS SO.
JUST A REMINDER [inaudible]
AND I REALLY DON'T KNOW IN THIS
WHOLE REALM.
WHAT THE LEGISLATIVE?
OVERSIGHT IS.
THE WHOLE THING SOUNDS A LOT
LIKE [inaudible]
UC'S CONSTITUTIONAL AUTONOMY
[inaudible] TO MEET.
END OF THAT IS INDEED OF SOME
CONCERN.
AND DO UNDERSTAND CONTINUES
APPROPRIATION DOESN'T MEAN
AUTOMATIC PROBATION FOREVER THAT
CAN BE.
CHANGED.
I DON'T HAVE A LEGAL OPINION HOW
THAT BOUNCES UP AGAINST
INITIATIVE BUT IT IS OF SOME
CONCERN.
AND THE LEGISLATIVE OVERSIGHT IS
CRITICAL AND THAT'S WHY.
THE MONITORING.
IN THE STABLISHMENT OF GOALS
[inaudible]
THIS CRITICAL.
AND WHAT I'M HEARING TODAY AS
WELL AS JUST GOING TO INVOLVED
IN WILL GET AROUND TO IT.
NOT ENOUGH SERIOUSNESS ABOUT IT
AND I HEAR THAT.
IN THE COMMENTS OF THE CHAIR YOU
HEAR THAT IN MY COMMENTS. TO TO
PRESENT THIS WHOLE NEW
EXPERIMENT.
IN THIS STATE.
AND HAVE IT WORK.
THINGS NEED TO BE VERY CLEAR AND
MONITOR.
AND I WOULD ARGUE PARTICULARLY
IN THIS SENSITIVE AREA. ONE OF
OUR GREATEST PROBLEMS IN
GOVERNMENT IS WE PASS MILLIONS
OF BILLS [inaudible]
YEAH MILLIONS [inaudible]
OVER DECADES.
BUT WITH A LITTLE HEAT. TO
MONITORING THE SUCCESSES.
A NEW PROGRAM.
THEN THE WE WATCH THE PROGRAM
AND DO WE HAVE ACCOUNTABILITY
THE PROGRAM OR THEIR BENCHMARKS
OTHER MILESTONES [inaudible]
FAILURES.
WHAT'S GOING ON IN HIGH TECH IN
CALIFORNIA IS A CLASSIC EXAMPLE.
I WOULD NOT WANT TO SEE THAT
[inaudible]
HAPPEN HERE.
AND I WOULD ENCOURAGE.
YOU TO GET A LOT MORE SERIOUS.
ABOUT THE EXPECTATIONS.
AND ABOUT THE GOALS SO THEN WE
HAVE A BENCHMARK.
WITH THE INFORMATION WE GET. TO
REFERENCE AND JUDGE.
THANK YOU GIPSON.
UNDER ANY INCREASES.
I'M SO I I THINK ONE THING THAT
WOULD BE REALLY HELPFUL IS.
A LOT MORE EXPLICITLY THAN
WHAT'S HERE [inaudible]
IS WHAT.
YOU KNOW WHAT THE BREAKDOWN OF
AUTHORITY IS.
THE GOVERNOR AND WHERE THE
LEGISLATIVE AUTHORITY IS.
WHERE IT'S JUST A MATTER OF --
WILL.
IT WILL BE CORDIAL AND LET THE
LEGISLATIVE YOU KNOW LET THE
LEGISLATION NO.
OR HOW MUCH OF A REQUIREMENT IS
THAT.
TO CONSULT SO I THINK THAT KIND
OF CLARITY BETWEEN WHAT THE
GOVERNOR'S.
ROLL AND WHAT THE LEGISLATORS
ROLE LEGISLATIONS ROLE IS WOULD
BE REALLY IMPORTANT AND I I A I
KNOW THIS WAS PASSED WITH SOME
VERY.
EXPLICIT OF THINGS THAT NORMALLY
THE LEGISLATION WOULD HAVE A LOT
MORE TO DO WITH IT.
THAN THIS SO -- I JUST IT JUST
SEEMS VERY VAGUE AND I THINK I
WANT TO BE ABLE TO EXPLAIN TO MY
COLLEAGUES.
RIGHT THIS IS WHAT WE SAY LIKE
WE THERE ARE GOING TO BE
INCLUDED.
VERY EXPLICITLY VERY CLEARLY
FOUR AND HOW WE'RE GOING TO BE
INCLUDED -- AND AND I DO AGREE
WITH SENATOR NELSON THAT THIS IS
A VERY BIG.
CULTURAL.
TO IT'S A VERY BIG ECONOMIC
CHANGE AND EVERYTHING THAT WILL
FLOW FROM IT.
IS DOLLARS AND CENTS THAT WE
COULD NEVER HAVE IMAGINED JUST A
FEW YEARS AGO.
SO I KNOW THE GOVERNOR TAKES
THIS WITH A LOT OF OF
RESPONSIBILITY AND SERIOUSNESS.
BUT WE JUST NEED TO SEE MORE OF
IT AND THIS SEEMS TO BE VERY
BARE BONES AT THIS POINT
[inaudible]
BUT THOSE ARE JUST MY COMING --
WE HAVE -- PUBLIC COMMENT PLEASE.
GOOD AFTERNOON GOING BACK IS FOR
DRUG POLICY ALLIANCE.
DRUG POLICY ALLIANCE'S SEE FOR
PARTNER DRUG POLICY ACTION WAS
THE SECOND LARGEST DONOR. TO
PROP SIXTY FOUR AND CONTRIBUTED
TO THE DRAFTING WE STRONGLY
SUPPORT THE GOVERNOR'S ACROSS
HER COVER.
TRAILER BILL LANGUAGE TO
IMPLEMENT THE EQUITY SECTIONS WE
THINK THAT IS EARLY INVESTMENT
IN EQUITY WHICH IS INTENDED TO
DIVERSIFY OWNERSHIP IN THE
MARKETPLACE.
WHO ARE FROM COMMUNITIES HAVE
BEEN MOST IMPACTED BY?
MASS INCARCERATION IN THE DRUG
WAR WHAT A CHANCE FOR ACTUAL
OWNERSHIP IN THIS LEGAL MARKET.
AND WE STRONGLY SUPPORT THAT IN
GENERAL WE ARE EXCITED BY THE
DIRECTION OF THE NEW
ADMINISTRATION IS TAKING THANK
YOU.
OKAY ANYBODY ELSE [inaudible]
OKAY.
SO THE STAFF RECOMMENDATION IS
TO ADOPT -- PLEASE HOLD TRAILER
BILL LANGUAGE -- I COULD HEAR A
MOTION TO THAT EFFECT.
MOVE THE RECOMMENDATION OKAY.
LOVER.
ROLL CALL.
THIRD RAZA HI THERE NIELSEN.
CENTER ON FOR NIELSEN I THEY'RE
NOTHING NOW.
THANK YOU VERY MUCH
.
WE'RE GOING TO GO BACK -- TO
ISSUES ONE THROUGH FIFTEEN AND
BEFORE -- WE ARE CENTER NIELSEN
IS THERE ANY PUBLIC COMMENT ON
ANY ONE OF THOSE ISSUES ONE
THROUGH.
FIFTEEN OKAY VERY NON.
SIR NIELSEN [inaudible]
FIVE THANK YOU [inaudible]
OKAY.
WHAT NUMBER WE AND -- ALWAYS GET
THE KIND OF A THING.
OKAY WE'RE GOING BACK TO OUR
THERE NIELSEN.
HI [inaudible]
THANK YOU.
IF.
THIS [inaudible]
EIGHTEEN OKAY.
GOOD AFTERNOON.
WE'RE GOING -- TO THE GOVERNOR'S
OFFICE OF BUSINESSAND ECONOMIC
DEVELOPMENT ISSUE.
EIGHTEEN WELCOME.
WELCOME THANK YOU [inaudible]
GO AHEAD.
THANK YOU TO ADDRESS -- AND
SENATORS SCIENCE AND THE
COMMITTEE I AM THE DIRECTOR OF
THE OFFICE OF THE SMALL BUSINESS
ADVOCATE WITHIN GOBIZ.
THE PROPOSAL FOR YOUR
CONSIDERATION AS FOR THE
EXPANSION OF STAFFING.
WITH THREE NEW POSITIONS FOR THE
OFFICE OF THE SMALL BUSINESS
ADVOCATE TO BETTER FULFILL THE
MISSION TO SERVE SMALL
BUSINESSES IN THE STATE OF
CALIFORNIA.
WITH NEEDED INFORMATION AND
RESOURCES SERVICE AN ADVOCATE ON
THEIR BEHALF AND STATE
GOVERNMENTS.
ADMINISTER THE GRANTS PROGRAMS
THE TECHNICAL ASSISTANCE
PROVIDERS AND CONSULT WITH
EXPERTS.
OUR OFFICE ALSO ASSIST WITH
SMALL BUSINESS DISASTER
PREPAREDNESS AND ECONOMIC
RECOVERY POST DISASTER.
I THANK YOU FOR YOUR
CONSIDERATION [inaudible]
HELLO.
CAROLINE SHE WITH LEGISLATIVE
ANALYST'S OFFICE WE DON'T HAVE
ANY CONCERNS WITH THIS PROPOSAL
WE SIMPLY WOULD NOTE -- THAT
THIS WOULD ONLY ALLOW GO BEST
LIKELY JUST SERVICE A SMALL
SHARE OF OVERALL SMALL
BUSINESSES IN THE STATE -- AND
SO THE LEGISLATURE MAY BE
INTERESTED TO TO HEAR FROM KOBE
IS -- HOW THEY MIGHT PLAN TO A
TO A CAST A BROADER NET WITH
THESE ADDITIONAL RESOURCES?
YOUR ANSWER PLEASE SURE YES OF
COURSE AB WE'VE BEEN ORKING IN
THE PAST THE PARTNERSHIPS AND I
WOULD HOPE TO EXPAND THAT --
I'VE BEEN FOUR WEEKS IN THE
POSITION BUT LOOKING -- TO YOU
KNOW CONTINUE TO LOOK AT WHERE
THERE ARE GAPS -- AND WITH THIS
EXPANDED -- STAFFING BE ABLE TO
TRY TO START TO FULFILL THOSE
AND AND WORK WITHIN THE
COMMUNITIES REGIONALLY.
ADD TO IDENTIFY CHALLENGES AND
AND HELP THEM -- NETWORK WITH US
BETTER IN ORDER TO RAISE THE
RATES THE CONCERNS OF SMALL
BUSINESSES -- WHAT ONE QUESTION
I DO HAVE ALONG THOSE LINES?
IS -- MAYBE AS YOU IDENTIFY
WHERE OR WHICH PARTNERSHIPS IS --
TO MAYBE GEOGRAPHICALLY.
LET US KNOW FOR THOSE NEEDS ARE
AS WELL.
DEFINITELY.
I THINK IT COULD HELP SOME OF US
IF THERE IS.
SOMETHING THAT WE COULD DO. TO
BE HELPFUL TO OUR REACH TO OUR
COMMUNITIES -- MAYBE WE COULD.
JUST ADD MORE.
YOU KNOW RATE BECAUSE CURRENTLY
WE HAVE A NORTHERN AND SOUTHERN
AND WE WERE ASKING IN THIS
PROPOSAL FOR THE ADDITION OF A
CENTRAL VALLEY -- POSITION BUT I
MEAN OF COURSE A THREE POINT
NINE MILLION BUSINESSES EMPLOY A
HALF OF THE PRIVATE WORK FORCE
AND SO -- YOU KNOW WE CAN NEVER
COMPLETELY SCALE UP TO BE ABLE
TO MEET THE NEEDS BUT
GEOGRAPHICALLY OBVIOUSLY THERE
ARE OTHER -- AREAS THAT WE COULD
YOU HAVE INDIVIDUALS PLACE MMHM
MMHM.
MAYBE SOME SORT OF MANY CAMPAIGN
HERE YOU KNOW WERE YOU.
YOU KNOW TAKE IT THROUGH THE
STATE NOT ONLY DO THESE TOURS SO.
SMALL BUSINESS ADVOCATE DAY AND
I'M SURE YOU'VE DONE THINGS LIKE
THAT I'M NOT TRYING TO SUGGEST
THIS IS A NEW IDEA -- BUT SINCE
I KNEW A MAYBE THAT'S WHY IT'S
COMING -- COMING TO MY MIND IS
HOW CAN WE GET THIS INFORMATION
OUT IN THEM MORE.
OF A PROACTIVE WAY I'LL
DEFINITELY LOOK INTO THAT OKAY.
THANK YOU [inaudible]
FINANCE.
NOTHING OF MEMBERS.
ANY YES CENTER NIELSEN.
USUALLY WHEN WE GET REQUEST
STAFFING WHY IS THERE SOME BASIS
FOR WHICH THAT IS REQUESTED.
WE DON'T HAVE ANY HERE IT'S JUST
GONNA WELL MAYBE WE CAN SERVE
MORE IF [inaudible]
DO.
I THINK WE REQUIRE OF THOSE
SHOULD REQUIRE A LITTLE BIT MORE
OF THAT.
HOW MANY DO YOU HAVE ANY
INVENTORY OF HOW MANY BUSINESSES
CAL BIZ IS REALLY HELPED NOW AN
INVENTORY OF?
NUMBERS OR DO YOU KEEP A RUNNING
TRACK OF WHO THEN HELPED IN
COMMUNITY NUMBERS OF BUSINESSES
THAT HAVE BEEN HELPED BY CAL
THIS I'M I WOULD BE I WOULD
DEFER TO CALPERS ON THAT BUT FOR
MY OFFICE THE OFFICE OF SMALL
BUSINESS ADVOCATE -- WE KNOW WE
COLLABORATE WITH THEM.
IN ORDER TO FULFILL THE NEEDS OF
SMALL BUSINESSES THAT APPROACHES
AND WE ALSO NETWORK IN THE
COMMUNITY EVENTS -- TO SUPPORT
THEIR NEEDS AS WELL BUT I DENIED --
CALVUS WOULD BE ABLE TO RESPOND
BETTER.
WE DO WE DON'T HAVE A
REPRESENTATIVE HERE FROM TOPIC
AT THE MOMENT BUT WE CAN.
GET THAT.
IF YOU WOULD THE BILL BEFORE I'D
VOTE ON THIS I'M GOING TO WANT
TO HAVE.
SOMETHING LOUDEST ABSTAINED
TODAY [inaudible]
OKAY.
BUT BUT THERE IT BUT THIS IS
SPECIFIC. TO CENTRAL VALLEY.
THE OUT WHILE THE THREE
POSITIONS WOULD BE FOR THE
OFFICE OF THE SMALL BUSINESS
ADVOCATE NOW ONE OF THOSE
POSITIONS WOULD BE FOR CENTRAL
VALLEY AND YOU CURRENTLY DON'T
HAVE OR YOU'RE ADDING.
TO CURRENTLY DON'T HAVE.
OKAY.
SO THAT'S A CHANGE BETTER CHANGE
THAT'S A CHANGE PROPOSING IN
ADDITION EXPAND YOUR SERVICES
AND IN ADDITION OUR OFFICES I
STARTED ADMINISTERING A GRANTS
PROGRAM LAST YEAR WHICH WAS NEW
AND IS CREATING NEW DEMANDS ON
THE OFFICE AND SO WE WANT TO
MAKE SURE THAT WERE ABLE TO FILL.
THE FORMATION OF THE OFFICE WITH
THIS EXPANDED STAFF REQUEST.
THAT AND IT'S SO WHY DID YOU
DECIDE TO DO IT IN THE CENTRAL
VALLEY.
WHAT HAS COME I THINK?
THE CENTER NIELSEN'S QUESTION IS --
YOU'RE ASKING FOR MORE POSITIONS --
YOU MENTION CENTRAL VALLEY WHAT
TRIGGERED THAT.
I THINK OFTENTIMES AND WE SEE
REFLECTED THAT -- ZIP CODES ARE
OFTEN NEGLECTED IN TERMS OF
THEIR THEIR CAPACITY TO GROW AND
SCALE INNOVATIVE SMALL BUSINESS
ESPECIALLY -- AND SO THERE ARE
MULTIPLE NEEDS THROUGHOUT THE
STATE WE FELT THAT CENTRAL
VALLEY WAS IN IN DIRE NEED IN
POSITION TO TRY TO EXPAND IN
TERMS OF SMALL BUSINESS SUPPORT.
AND THAT'S USUALLY THE AREA THAT
WERE LEAST ABLE TO ACCOMMODATE
AT LEAST WITH -- OUR LOS ANGELES
OFFICE WERE ABLE TO MEET MOST OF
THE SOUTHERN.
OUT REQUESTS AND THING FOR THE
NORTH.
WITHOUT COLLECTED COVER
ADDITIONAL GROUND [inaudible]
OKAY.
YEAH I SITE I THINK THAT'S THE
SORT OF THING THAT.
THE SENATOR WAS LOOKING FOR IS
[inaudible]
WHY?
WHY AND EXPANSION LET'S NOT
EXPANSION OF WORKLOAD USUALLY
LOT OF THE REQUEST ARE WE'RE
GETTING?
WORKLOAD IS GETTING TOO HIGH WE
NEED TO FILL THE BILL TO JUST
CARRY ON ARGUE THESE -- SO I
THINK THAT WOULD BE VERY HELPFUL
OKAY THANK YOU.
THANK YOU SIR.
WE'RE SUPPOSED TO WORK QUESTIONS
OKAY I'LL ENTERTAIN A MOTION.
OF CONCERT PUBLIC COMMENT YES
SIR THANK YOU VERY MUCH AFRAID
NO WERE REPRESENTED CAL AGING
CHAMBER OF COMMERCE AND THE
SILICON VALLEY LEADERSHIP GROUP.
BOTH IN VERY MUCH STRONG SUPPORT
OF THIS A PROPOSAL THAT WE THINK
WILL STIMULATE TRADE IN A IN A
VERY CRITICAL TIME.
THANK YOU FOR YOUR SUPPORT RIGHT
IT DADDY I THINK HE WAS
REFERRING TO MY ITEM WHICH I
HAVE -- ITEM NEXT ITEM TRADE.
THANKS.
I DON'T KNOW IF THIS IS TRADE
YEAH.
WE'RE WORKING CLOSELY TOGETHER.
SHOULD I GO WITH MINE -- OUR DO
YOU WANT TO HAVE MORE PUBLIC
COMMENT.
LE LET ME JUST LOOK AT THIS JUST
FINISH THIS.
ONE YES BUT WE NEED A MOTION ON
THIS ONE ISSUE.
EIGHTEEN A MOVE.
OKAY THERE'S A MOTION TO APPROVE
THE STAFF RECOMMENDATION.
IN RAZA.
INTERNALS AND AT THE CENTER ON
BURKE [inaudible]
OKAY.
THE NEXT.
ONE OKAY THIS IS THE
INTERNATIONAL TRADE OFFICIALS
OKAY -- GOOD AFTERNOON CHARTER
ALSO AND SENATORS MY NAME IS BY
CALLING ON THE SENIOR ADVISOR
FOR INTERNATIONAL AFFAIRS AND
TRADING COPE AS THE B. C. P. FOR
THREE INTERNATIONAL TRADE
INVESTMENT SPECIALISES FOCUSED
ON INCREASING THE CAPACITY.
OF THE INTERNATIONAL FAIRS UNIT
ECHO BILLS.
CALIFORNIA IS THE FIFTH LARGEST
ECONOMY IN THE WORLD. ONE IN
FIVE JOBS IN THE STATE DEPENDS
ON INTERNATIONAL TRADE AND
INVESTMENT THAT'S UP FROM ONE IN
TEN JOBS TWENTY YEARS AGO.
SINCE TWO THOUSAND THREE
CALIFORNIA'S INVESTMENT
INTERNATIONAL TRADE HAS BEEN
MINIMAL THERE'S THREE PEOPLE IN
MY GROUP.
PUTTING MYSELF.
A AND THE RESULTS ARE EVIDENT.
DECLINING SHARE OF EXPORTS FROM
14% IN. 20004211% IN.
TWO THOUSAND EIGHTEEN AND
DECLINING SHARE FOREIGN DIRECT
INVESTMENT FROM 25% IN.
200015215% IN.
WO THOUSAND SEVENTEEN AT THE
SAME TIME OTHER STATES HAVE
HEAVILY INVESTED IN ARE GAINING
SHARE. FORTY OF FIFTY STATES
HAVE INTERNATIONAL TRADE
SPECIALIST.
WHEN CALIFORNIA ELIMINATED MOST
OF ITS INTERNATIONAL TRADE AND
INVESTMENT SPENDING IN?
TWO THOUSAND THREE THE WORLD WAS
NOT CONNECTED LIKE IT IS TODAY.
THE INTERNET WAS IN ITS INFANCY.
CHINA WAS NOT THE ECONOMIC POWER
IT IS TODAY.
OTHER STATES HAD NOT RAMPED UP
THEIR INTERNATIONAL TRADE AND
INVESTMENT EFFORTS.
TIMES HAVE CHANGED AND
CALIFORNIA MUST CHANGE WITH THEM
IF IT WANTS TO MAINTAIN ITS
SHARE OF WORLD TRADE AND
INVESTMENT.
I'D BE HAPPY TO ANSWER ANY
QUESTIONS YOU HAVE.
THANK YOU HELLO.
ALSO THE THE HISTORY AS WAS JUST
NOTED I IS ALSO WELL SPELLED OUT
OF A CALIFORNIA'S EFFORTS TO
BOOST INTERNATIONAL TRADE IN THE
PAST.
PRIOR TO TERMINATING THESE
ACTIVITIES IN TWO THOUSAND THREE
OUR OFFICE OF LONG QUESTION THE
ABILITY OF THE STATE TO REALLY
INFLUENCE INDIVIDUAL BUSINESSES
BEHAVIOR AND CHOICES.
WE CONTINUE TO AFFECT ODD THAT
DECISION INDIVIDUAL DECISIONS BY
BUSINESSES ON AND WE'VE SIMPLY
WOULD ENCOURAGE THE LEGISLATURE
TO CONTINUE TO ASK QUESTIONS OF
THE ADMINISTRATION AND BE.
SKEPTICAL OF THE EXTENT TO WHICH
THE STATE CAN EFFECTIVELY --
CHANGE THE TIDE OF ECONOMIC
DEVELOPMENT IN THESE AREAS AND
AFFECT INDIVIDUAL BUSINESS
TRANSACTIONS.
OF WOULD YOU LIKE TO RESPOND --
IN TWO THOUSAND THREE WE HAD
EIGHTY FIVE EMPLOYEES TWELVE
TRADE OFFICES AND IN TODAY'S
DOLLARS WE'RE SPENDING ABOUT
THIRTEEN MILLION DOLLARS.
MOST OF THAT MONEY WAS GOING
INTO TRADE OFFICES.
THIS PROPOSAL IS NOT FOR TRADE
OFFICES IT IS FOR THREE
ADDITIONAL INTERNATIONAL TRADE
AND INVESTMENT SPECIALISTS ONE
FOR THE AMERICA'S ONE FOR EUROPE
AND ONE FOR ASIA.
WHICH WILL BE FOCUSED ON
SPECIFIC AND MEASURABLE
ACTIVITIES IN THOSE -- THREE A
GEOGRAPHIC REGIONS.
OF THOSE ARE FOCUSED ON OUR
BIGGEST TRADING PARTNERS IN
AMERICA'S CANADA AND MEXICO.
IN EUROPE IT'S GERMANY THE
NETHERLANDS AND THE UK.
A IN THE E. U. IN GENERAL AND IN
ASIA IT'S CHINA JAPAN.
KOREA INDIA HONG KONG AND
VIETNAM.
SO I THINK THAT -- THIS IS A
VERY MINIMAL INVESTMENT.
IF YOU LOOK AT OTHER STATES FOR
EXAMPLE JUST TO GIVE YOU SOME.
PERSPECTIVE ABOUT WASHINGTON HAS.
SIX PEOPLE IN THIS AREA.
IT IS. FIVE POINT CALIFORNIA'S
FIVE POINT THREE TIMES AS LARGE
AN ECONOMY.
MINNESOTA HAS TWELVE PEOPLE IN
THEIR INTERNATIONAL AFFAIRS
GROUP.
WE ARE EIGHT TIMES LARGER AS AN
ECONOMY.
IN COLORADO HAS TEN PEOPLE WE
ARE A POINT ONE TIMES AS LARGE
[inaudible]
SO.
THERE HAS TO BE A MINIMAL
INVESTMENT WE HAVE.
HUNDREDS OF DELEGATIONS COMING
TO SEE US WE HAVE THE
OPPORTUNITY TO CONVERT THOSE
INTO INVESTMENT IN CALIFORNIA
AND CALIFORNIA JOBS.
BUT WE WE CANNOT CONTINUE THIS
LEVEL OF INVESTMENT IF WE WANT
TO BE SUCCESSFUL.
AND IF WE WANT TO REVERSE THE
DECLINE IN OUR MARKET SHARE FOR
EXPORTS IN OUR MARKET SHARE FOR
FOREIGN DIRECT INVESTMENT.
THEY ARE GOING TO OTHER STATES.
CAN YOU GIVE A SPECIFIC EXAMPLE
ABOUT HOW.
HAVING THE STAFF WOULD.
BLOOM PRODUCE GREATER RESULTS
AND WHAT WE'RE GETTING
ESPECIALLY IN A MORE COMPETITIVE.
SURE WORLD -- FOR EXAMPLE ONE OF
THE THINGS WE WANT TO DO THERE
ARE OFFICES -- OF FROM THE US
COMMERCIAL SERVICES FOR EXAMPLE.
THEY HAVE TWELVE OFFICES IN
CALIFORNIA AND THEY ALSO HAVE AN
OFFICE IN EVERY EMBASSY AROUND
THE WORLD THIS IS U. S. OFFICES.
ON I WANT TO DEVELOP VERY%
FOCUSED BUSINESS PLANS OFFER A
FIFTEEN TOP EXPORT AND FOREIGN
DIRECT INVESTMENT MARKETS THE
COUNTRIES THAT I JUST NAMED.
WHERE WE WOULD WORK HAND IN
GLOVE WITH US COMMERCIAL
SERVICES TO INCREASE THE LEADS?
INCREASE THE MARKET ENTRY
STUDIES -- INCREASE THE TRADE
MISSIONS -- AND BE ABLE TO
CONVERT THOSE INTO TANGIBLE
BENEFITS FOR THE PEOPLE OF
CALIFORNIA.
SO SOME OF IT IS ALSO WORKING
DIRECTLY WITH OUR REGIONAL
PARTNERS.
THE GOOD NEWS ABOUT OUR OFFICE
IS CLOSING IN TWO THOUSAND THREE
WITH OUR REGIONAL PARTNERS
THROUGHOUT THE STATE HAVE GOTTEN
A LOT STRONGER.
IF YOU LOOK AT THE ALLEY CHAMBER
WHO'S HERE TODAY THEY'RE HAVING
THEIR SACRAMENTO DAY -- WHERE
THE SAN DIEGO REGIONAL EDC OR
THE FRESNO BUSINESS COUNSELOR
EDC?
BECAUSE THERE HAS BEEN ALMOST
ZERO STATE SUPPORT.
THEY HAVE HAD TO GET A LOT
STRONGER AND NOW IT HAS BEEN
GREAT.
BUT WHAT WE COULD DO IF WE ALL
WORK TOGETHER.
IS REALLY SHARE BETTER HAVE A
BETTER DIRECTION.
NOT DUPLICATE EFFORTS AND BE IN
A POSITION TO REALLY LEVERAGE
THAT NEW FOUND POWER THAT WE
HAVE IN THE CALIFORNIA REGIONS
AND EXTENDED OUT TO THE WORLD.
SO THOSE ARE JUST A COUPLE OF
THINGS THAT I WOULD SEE US DOING
MORE OF CENTER [inaudible]
QUESTION.
IN THE UNITED STATES HAS TRADE
OFFICES ALL OVER THE WORLD.
OF THEIR MISSION IS TO INCREASE
TRADE WITH -- HIM WITH THE RISE
IS IN BETWEEN ON VARIOUS
COUNTRIES IN THE UNITED STATES.
YOU KNOW GIVEN THE FEDERAL
GOVERNMENT AND AND THIS IS MY
OPINION -- ANTIPATHY IN TERMS OF
CALIFORNIA WE SEE ANYTHING.
CHANGE THE LAST COUPLE YEARS --
WITH RESPECT TO OF FOR EXAMPLE
ANY SORT OF PREFERENCE OR THE
LACK THEREOF WITH RESPECT
CALIFORNIA BUSINESS BY OUR US
ORGANIZATIONS.
I'LL GIVE YOU A TWO PART ANSWER
THE FIRST PART IS THAT.
GENERALLY WHAT WE FIND -- IN THE
U. S. COMMERCIAL SERVICES WHICH
IS A PART OF THE DEPARTMENT OF
COMMERCE.
THE THE PERSONNEL THAT IS
DIVIDED GEOGRAPHICALLY AND IS
FOCUSED ON CALIFORNIA NO I
HAVEN'T SEEN ANYTHING THEY WANT
TO HELP US THEY'RE ACTIVELY
ENGAGE WITH US IN FACT I HAVE A
MEETING WITH THE SOUTHERN
CALIFORNIA.
HEAD THAT COVERS THE ARIZONA AND
NEVADA AND HAWAII AND SO THE
CALIFORNIA TOMORROW DOWN IN
ORANGE COUNTY SO.
AND AND THE ONES UP HERE THE THE
REGIONAL HAD FOR NORTHERN
CALIFORNIA AND SOME OF THE
WESTERN STATES IS IN UTAH BUT
HE'S VERY COOPERATIVE AND AND
GOOD.
THE TWELVE OFFICES AGAIN.
A COOPERATIVE IN FACT SOME OF
THEM ARE HEADING OF CALIFORNIA
DISTRICT EXPERT COUNCILS SO THAT
I THINK -- HAS BEEN GREAT -- WAS
MY SECOND POINT.
MY POINT WAS GIVEN WHAT I
BELIEVE TO BE THE TIP OF THE OF
THE FEDERAL GOVERNMENT WITH
RESPECT TO THE ACTIONS OF THE
FEDERAL GOVERNMENT IS THE
ADMINISTRATION TOWARDS.
CALIFORNIA WEATHER'S BEEN A
CHANGE YES -- MY I REMEMBER
START -- THE SECOND POINT IS WE
HAVE SOMETHING A FEDERAL PROGRAM
CALLED STEP IT'S THE STATE TRADE
EXPORT PROMOTION PROGRAM.
PART IT THIS IS AN ANTIPATHY BUT
IT'S BAKED INTO THE LAW -- IT
WAS.
DEVELOPED BY SOME SENATORS FROM
SMALLER STATES SAYS ABOUT
SEVENTEEN OR EIGHTEEN MILLION
DOLLARS AVAILABLE AND THESE ARE
THREE TO UP TO THREE THOUSAND
pBUSINESSES.
WORKING WITH ISABEL'S GROUP
OUGHT TO DO MARKET ENTRY -- BUT
STUDIES OR TO GO INTO ON A TRADE
MISSION OUT TO ANOTHER COUNTRY --
WE ARE CAPPED AT NINE HUNDRED
THOUSAND DOLLARS THAT'S THE MOST
THAT ANY STATE CAN GET.
THAT'S ABOUT 5% OF THE MONEY BUT
WERE ABOUT 12% OF THE POPULATION.
WERE THE NUMBER ONE TRADE STATE
WE'RE NUMBER ONE IN AGRICULTURAL
EXPORTS NUMBER WHEN A MACHINERY
EXPORTS NUMBER ONE ELECTRONICS
EXPORTS.
THERE'S A LOT OF THINGS THAT
WE'RE DOING WELL AND WE NEED TO
CONTINUE TO DO WELL -- BUT IT'S
HARD WHEN WE CAPPED AT 5% SO I
WOULDN'T CALL THAT ANTIPATHY BUT
I WOULD SAY IT IS BAKED INTO THE
LAW AND I BET.
THAT'S THE CHANGE THE LAST TWO
YEARS NOW NOW THAT HASN'T
CHANGED WITH PRESIDENT TRUMP SO
BUT BUT MY SECOND POINT IS IS
THAT THAT THERE'S A I GREW UP IN
THE MIDWEST THERE'S A REASON WHY
STATES IN THE MIDWEST SUCH AS
MINNESOTA NEED TO DEVOTE.
FAR MORE RESOURCE TO TRACK
BUSINESS THERE THAN CALIFORNIA
[inaudible]
DOM.
WELL BUT THAT'S JUST JUST A
COMMENT YOU DON'T NEED THE ONLY
RESPOND TO THAT WELL IT.
IT'S TRUE -- WE HAVE SOME --
GEOGRAPHIC ADVANTAGES THAT ARE
AMAZING AND BUT WE ARE LOSING
SHARE SO THOSE ARE THE FACTS --
I CAN APPRECIATE WHAT YOU'RE
SAYING THERE I SERVED ON THE LA
CONVENTION VISITORS -- BOARD --
FOR MANY MANY YEARS.
AND LOS ANGELES BEING WELL KNOWN
THROUGHOUT THE WORLD BEGAN TO
SORT OF KICK BACK.
AND JUST LET OUR REPUTATION.
YES AND WE BEGAN TO SUFFER
BECAUSE WE WEREN'T PAYING
ATTENTION TO THE GROWING
COMPETITION. FOR TOURISM IN
CITIES AND STATES THROUGHOUT THE
THE COUNTRY SO WE HAD TO REALLY
CHANGE GEARS.
AND BE MUCH MUCH PROACTIVE IN
FAX -- SET UP -- OFFICES IN
SEVERAL OTHER COUNTRIES JUST FOR
LOS ANGELES -- AND SO IT AND IT
REALLY STARTED TO MAKE A
DIFFERENCE AT LEAST WE WEREN'T.
PERCENTAGE WISE WE WEREN'T
BEGINNING WE'RE WE'RE NO LONGER
LOSING WHAT WE HAD BEEN BEFORE
SO.
I CAN APPRECIATE THAT SOMETIMES
YOU TAKE.
OR HIGHER POSITION FOR GRANTED
AS A FOR ALWAYS GOING TO BE
THERE AS IF THERE'S NO MORE
COMPETITION IN THE WORLD SO HE
HAS -- CHARTER ALSO IF I COULD
JUST MAKE ONE COMMENT ON THAT.
VISIT CALIFORNIA WHICH IS OUR
SORT OF BECAUSE I STATE
ORGANIZATION THAT RAISES ITS
MONEY FROM THE INDUSTRY AND IS
BASICALLY GOVERNED BY THE
INDUSTRY.
THEY WERE SPENDING ABOUT FIFTY
MILLION DOLLARS A YEAR UP UNTIL
FIVE YEARS AGO AND CAROL
INVITADA WENT TO ALL OF IT THE
INDUSTRY MEMBERS AND SAID.
WE'RE STARTING TO LOSE SHARE IN
OUR CHARISM.
AND SHE ASKED THE MEMBERS TO
DOUBLE.
THEIR ASSESSMENT AND THEY DID
AND NOW -- VISIT CALIFORNIA HAS
ABOUT A HUNDRED AND TWENTY
MILLION DOLLAR BUDGET GREW
HUNDRED AND THEN THE ECONOMY IS
CONTINUE TO MAKE A CO OP.
BUT THAT'S THE KIND OF A
PROACTIVE EFFORT THAT WE NEED
WHEN WE SEE OUR SHARE LOSSES TO
SAY WE CAN'T LET ALLOW THIS
THING IT.
COULD TO CONTINUE IF WE WANT TO
HAVE THE RIGHT JOBS IN
CALIFORNIA [inaudible]
OKAY.
SENATOR ENDING.
ANYMORE QUESTIONS COMMENTS.
WELL YOU KNOW I CAN HAVE A LONG
HISTORY GOING BACK TO THE
EIGHTIES ACTUALLY CARING
LEGISLATION SETTING UP.
ADDITIONAL AND THEN I THINK WE
ONLY HAD.
THREE TRADE OFFICES MADE GREAT
SENSE.
I THINK THEY HAD VALUE.
AS TIMES HAVE INVOLVED THOUGH.
THE EDGE EXIT IN CIRCUMSTANCES
THAT -- AFFECT OUR TRADE
POSITION.
IN THE WORLD OUR MEANING
CALIFORNIA.
ARE A HECK OF A LOT MORE RELATED.
TO THE STATE OF CALIFORNIA AND
ITS POLICIES GENERALLY.
DOES NOT FRIENDLY [inaudible]
THIS.
AND OVER REGULATION.
THE FOURTH BRANCH OF GOVERNMENT
BEING TOO OPPRESSIVE.
AND THOSE SIGNALS THAT ARE NOT
LOST ON FOREIGN COUNTRIES AS
WELL.
I ONLY INTERJECT THAT NOT
SPECIFICALLY TO THIS
[inaudible]
ATTEMPT.
BUT IF WE CALIFORNIA ARE GOING
TO GET AHEAD WE'VE GOT TO
ADDRESS THIS MORE MACRO.
AND MORE INGRAINED [inaudible]
ISSUE.
OF HOW WEAK CALIFORNIA
[inaudible]
CHOOSE [inaudible] TO REGULATE.
AND MANAGE BUSINESS.
OKAY -- POOL THANK YOU VERY MUCH
LET CAN I HEAR A MOTION --
PUBLIC I'M SORRY I APOLOGIZE FOR
THAT EARLIER WHEN I I HAD AN
OLDER -- ANYHOW ASSISTANCE WILL
CORPORATE BY ROUGHLY. EIGHTY BUT
AGAIN WE HAVE SO CALLED VALLEY
LEADERSHIP GROUP IN THE KELLY
XIN CHAMBER OF COMMERCE FOR MUCH
IN SUPPORT.
AND ON BEHALF OF THE ALLOCATION
CHAMBER JUST WANNA.
MENTION THAT EXPORTING ABROAD IS
HARD ENOUGH ALREADY FOR EVERYDAY
BUSINESS IS A FULL TIME
DEDICATED STAFF TO DIRECTLY
FACILITATE TRADE TO OUR STATE'S
LARGEST.
GLOBAL GLOBAL MARKETS IS
CRITICAL NOT ONLY FOR THE
BUSINESSES WE REPRESENT BUT
ESPECIALLY BURNER ECONOMY IS
LARGE AND GLOBALLY DIVERSE AS
OURS THANK YOU.
THANK YOU.
WE DO HAVE A LOT TO EXPORT OUT
THE WAY YES WE DO.
AND THAT'S FOR OUR BUSINESSES
HERE YES -- ALREADY HERE.
OKAY OF IF NO MORE QUESTIONS --
THEN I'LL HEAR A MOTION TO
APPROVE AS BUDGET IS
[inaudible]
SO MOVED [inaudible]
ROLL CALL.
THIRD RAZA HI THERE NIELSEN.
SENATOR UMBERG [inaudible]
OKAY.
THANK YOU THANK YOU.
THANK YOU VERY MUCH APPRECIATE
YOUR OKAY WHICH ONE ISN'T.
THE BILL.
NO BUT I CANCEL NUMBERS.
YEAH TWENTY AT ISSUE TWENTY
THAT'S TWENTY WE JUST AT THE
OFFICE OF TEXAS YEAH A RESULT A
CORRECTIVE TO EACH ONE ALL I SEE
OKAY -- SO OFFICE OF TAX APPEALS
ISSUE.
TWENTY NIELSEN.
ALL RIGHT OKAY EVERYBODY THANK
YOU MEMBERS.
THANK YOU STAFF RESHAPED YOU