ALRIGHT LADIES AND GENTLEMEN AN
INTEREST OF TIME WE'RE GOING TO
CONVENE THE US.
WE'RE GONNA CAM SENATE BANKING
AND FINANCE AN INCH INSTITUTION
COMMITTEE AT THE SUBCOMMITTEE
WERE LACKING A QUORUM RIGHT NOW
I SEE WE HAVE OUR FIRST.
WITNESS ASSEMBLYMAN STONE SO
WHEN YOU'RE READY YOU IN YOUR
WITNESSES CAN COME.
FOR AND WILL RECEIVE YOUR
TESTIMONY ON ITEM NUMBER ONE A.
B.. THREE SEVEN SIX AND WE'RE
GONNA LIMITED TESTIMONY TO TWO
PRIMARY WITNESSES AND THE REST
CAN.
APPROPRIATE TIME TO STATE.
YOUR ME TO USE THANK YOU.
THANK YOU MISTER CHAIR AND
MEMBERS AS WITNESSES COME UP I
JUST WANT.
TO THANK YOU FOR GIVE ME THE
OPPORTUNITY PRESENTED AB THREE
SEVENTY SIX AND FIRST I WOULD
LIKE.
TO STATE THAT THERE ARE A NUMBER
OF AMENDMENTS THAT ARE LISTED ON
PAGE EIGHT OF THE ANALYSIS AND
WE ARE TAKING ALL OF THOSE
WORKING WITH.
YOUR STAFF YOUR COMMITTEE AND
THEN INTO THE NEXT COMMITTEE
WHICH WILL BE SENATE JUDICIARY.
AN EIGHTY THREE SEVENTY SIX IS A
VERY VERY IMPORTANT BILL THAT
BUILDS ON WORK THAT HAS GONE
THROUGH THIS COMMITTEE OVER THE
LAST NUMBER OF YEARS.
WE CREATED.
A LICENSING PROGRAM FOR STUDENT
LOAN SERVICERS AND THIS IS THE
STEP THAT GIVE STUDENT LOAN
BORROWERS.
SPECIFIC RIGHTS THAT THEY THEN
CAN AND SHOULD BE ABLE TO
ENFORCE GIVE AND THE ENVIRONMENT
THAT THEY'RE OPERATING IN.
AND WHAT IS THAT ENVIRONMENT
THAT IS AN ENVIRONMENT WHERE
JUST FOR CALIFORNIA. ONE HUNDRED
AND FORTY BILLION DOLLARS WORTH
OF STUDENT LOAN DEBT IS
OUTSTANDING IN THIS A FAX ALMOST
FOUR MILLION CALIFORNIANS.
AND WHEN WE STARTED THIS JOURNEY
ON THE LICENSING PROGRAM.
THE GOVERNMENT WAS REALLY A
PARTNER IN THIS AND WE WORKING
PRETTY CLOSELY AND WATCHING WHAT
WAS GOING ON AT THE FEDERAL
LEVEL.
IN ORDER TO TAILOR CALIFORNIA'S
PROGRAM TO THE FEDS WHAT IS
HAPPENED SINCE THEN IS THE
FEDERAL GOVERNMENT IS COMPLETELY
WALKED AWAY.
FROM STUDENT LOAN BORROWERS IN
FACT FROM THEIR OBLIGATION ON
CONSUMER FINANCIAL PROTECTIONS
ALL TOGETHER. FIFTY BE IS BEING
GUIDED.
THE THE WORK THOSE PERMITS
CATION THAT HAD BEEN GOING ON TO
TRY TO PROTECT TO LOAN BORROWERS
IS NOW KNOW WHERE AND THEY ARE
ACTIVELY MOVING. TO PROTECT THE
STUDENT LOAN SERVICERS WHO HAVE
PROVEN TO BE ACROSS THIS COUNTRY
SOME OF THE WORST ACTORS IN
DEALING WITH THIS THAT.
THIS IS THE SECOND HIGHEST
AMOUNT OF DEBT THAT WE ARE
SUFFERING BEHIND HOME MORTGAGES
AND YET WE NOW HAVE.
HOMEOWNERS BILL OF RIGHTS WE
PROTECT PEOPLE BORROWERS WITH
CREDIT CARDS WE HAVE ALL OF
THESE STRUCTURE TO MAKE SURE
THAT CONSUMERS HAVE THE BEST
OPPORTUNITY TO MANAGE THEIR DEBT.
EXCEPT FOR STUDENT LOANS TO NON
SERVICERS HAVE CONSTANTLY BEEN
GIVING INCORRECT.
INFORMATION TO STUDENT LOAN
BORROWERS IN FACT THEY'RE VERY
CLEAR THAT THEY KNOW -- NO
OBLIGATION OF THE BAR WAS
THEMSELVES.
AND IN COURT HAVE SET THE BAR WE
SHOULD NOT EXPECT.
ANYTHING FROM THE STUDENT LOAN
SERVICERS TO BENEFIT.
WHICH IS A BIT ASTONISHING SINCE
THEY HAVE THE ABILITY TO EITHER
HELP OR HURT THE AFTER WE PASS A
LICENSING PROGRAM THERE ARE.
A DOZEN STATES OR MORE WHO HAVE
BEEN LOOKING AT DOING THE SAME
THING ESPECIALLY IN THIS
ENVIRONMENT WITH THE FEDERAL
GOVERNMENT IS BACKING OFF AND
TAKING AWAY SOME OF THE RIGHTS
AND AND ABILITIES IS TO NUMBERS
HAD TO PROTECT THEMSELVES.
NOW THOSE SAME STATES ARE
LOOKING TO TO CALIFORNIA AS WE
MOVE THIS BILL FORWARD TO SEE
WHAT IT IS THAT WE'RE DOING AND
HOW THEY CAN BETTER TO PROTECT
THEMSELVES. TO THE STUDENT LOAN
BILL OF RIGHTS IS A VERY VERY
IMPORTANT PIECE OF WE'RE GOING
TO PROTECT TO THE BARBER'S.
IN THE STATE OF CALIFORNIA AND
YES WE NEED TO FIND A BETTER WAY.
TO REDUCE THE COST OF EDUCATION
TO MAKE SURE WE DON'T HAVE SO
MANY PEOPLE INCURRING THE STATE
BUT IN THE MEANTIME WE CANNOT
LEAVE BEHIND ALL OF THOSE
STUDENTS WHO ARE CARING THIS
THAT.
AND AND SHOULD BE ABLE TO EXPECT
THE STATE OF CALIFORNIA STAND UP
FOR THEM WITH THAT I
RESPECTFULLY REQUEST AND I AND I
HAVE TO WITNESSES HERE TOM'S
DIRE.
FROM NEXT GEN AND THE REVEREND
MAX.
SOCIO WHO IS A SACRAMENTO AND
WHO HAS A STORY A PRETTY
FRIGHTENING STORY ABOUT HAVING
SUFFERED SOME OF THE SITUATIONS
AND THE DEBT THAT HE IS CARRYING
BECAUSE OF MISINFORMATION.
FROM TO NON SERVICE THANK YOU
[inaudible]
STAR.
CAN READ.
FOR MEMBERS OF THE COMMITTEE.
I'M HERE TO URGE YOUR SUPPORT
FOR A BI THREE SEVENTY SIX THE
STUDENT BORROWER BILL OF RIGHTS.
OF WHICH NEXT GEN CALIFORNIA IS
A PROUD CO SPONSOR.
I CAN UNDERSTAND THE DEPTH OF
THIS PROBLEM TO OUR WORK AT NEXT
GEN.
THE LAST TWO YEARS WE'VE BEEN IN
ELEVEN STATES REGISTERING IN
MOBILIZING THOUSANDS OF YOUNG
PEOPLE TO VOTE.
WE ARE FOUR HUNDRED AND TWENTY
COLLEGE CAMPUSES INCLUDING
TWENTY IN CALIFORNIA.
TALKING ABOUT WHAT STUDENTS CARE
ABOUT MOST.
OVER AND OVER AGAIN WE HEAR
PLEASED TO DO SOMETHING ABOUT
THE STUDENT DEBT CRISIS.
WHEN OUR ORGANIZER'S CANVASSED
YOUNG AMERICANS 61% OF THEM
RANKED COLLEGE AFFORDABILITY AND
STUDENT LOANS?
IT'S ONE OF THEIR TOP CONCERNS.
IN CALIFORNIA IT WAS 72%.
THAT'S WHY THIS BILL IN THE
ISSUE OF STUDENT LOAN DEBT IS A
PRIORITY FOR ME.
AND FOR MILLIONS OF CALIFORNIANS.
AND TO PUT A HUMAN FACE ON THOSE
NUMBERS I WANT TO TALK ABOUT ONE
OF OUR NEXT GEN STAFFERS NAME
SAMANTHA.
WHO TOOK OUT NEARLY A HUNDRED
THOUSAND DOLLARS TO PAY FOR HER
BACHELOR'S DEGREE?
HE GRADUATED IN TWO THOUSAND AND
NINE AND ENDED THE WAR THE WORST
JOB MARKET IN GENERATIONS.
HE WAS UNEMPLOYED FOR NINE
MONTHS.
AFTER WORKING ON POLITICAL
CAMPAIGNS SHE WENT INTO
FORBEARANCE TWICE.
AND IT WASN'T UNTIL SHE WAS SIX
YEARS OUT OF COLLEGE BUT YOU
COULD MAKE STEADY PAYMENTS.
BETWEEN FORBEARANCE AND INTEREST
RATES BETWEEN SIX AND 11% --
LOANS WILL LIKELY HANG OVER HER
HEAD FOR THE NEXT THIRTY YEARS.
SAMANTHA'S EXPERIENCES FAMILIAR.
TO MANY YOUNG PEOPLE EXPLOITED
BY AN INDUSTRY NOT FOCUSED ON
CONSUMER PROTECTION.
BUT I'M THEIR FINANCIAL GROWTH.
I'M HERE FOR THE CALIFORNIANS
WITH DREAMS OF HOMEOWNERSHIP.
STARTING A BUSINESS.
CALIFORNIANS WHO HAVE HAD TO
DEFER PARENTHOOD.
AND LET BILLS FASTER SO THEY CAN
PAY THEIR LOANS EACH MONTH.
I'M HERE FOR THE VETERANS WHO
RISK THEIR LIVES OVERSEAS AND
NOW CAN'T AFFORD A DEGREE.
SINGLE MOTHERS WHO WENT BACK TO
COLLEGE TO PROVIDE FOR THEIR
KIDS.
CAN'T GET AHEAD BECAUSE OF THE
PAYMENTS.
AND THE GRANDPARENTS TO COSIGN
FOR THEIR GRANDCHILDREN'S LOANS.
OR WENT BACK TO SCHOOL.
AND I WOULD NOTE THAT ONE OF THE
FASTEST GROWING COHORTS OF
STUDENT LOAN DEBT.
IN AMERICA HERE AMERICANS OVER
FIFTY YEARS OLD.
THIS IS NOT A PARTISAN
REPUBLICAN DEMOCRAT FIGHT.
IT'S A CUTE KITCHEN TABLE ISSUE
WHO AFFECTS EVERYONE.
AND THAT'S WHY ATTORNEYS GENERAL.
FROM RED AND BLUE STATES ALIKE
HAVE FILED SO MANY LAWSUITS
AGAINST PREDATORY LOAN SERVICING
COMPANIES.
AND IT'S OF STRAIGHT FORWARD
CHOICE BETWEEN SIDING WITH THE
BIG BANKS AND LOAN SERVICES.
THE BROAD COALITION OF AB THREE
SEVENTY SIX SUPPORTERS WHICH
INCLUDE THE A A RP.
THE STATE'S REALTORS LABOR
UNIONS VETERANS YOUNG FARMERS
TEACHERS CONSUMER ADVOCATES
STUDENT GROUPS.
AND THE THOUSANDS OF AFFECTED
CALIFORNIANS IN EVERY SINGLE
DISTRICT IN THE STATE.
IT IS A CRISIS.
THOSE SUFFERING DESERVE MORE
CONSUMER PROTECTIONS JUST AS
HOMEOWNERS DID DURING THE
FORECLOSURE CRISIS.
I'M ASKING FOR AN AYE VOTE ON
THIS THANK YOU VERY MUCH.
GERMANBRADFORD MEMBERS OF THE
COMMITTEE.
THANK YOU FOR YOUR THAT'S RIGHT
HEY [inaudible]
MY EXPERIENCES.
MY STUDENT LOAN.
I A M..
MY NAME IS MAX SO SAY I AM A
SEVENTY TWO YEAR OLD VETERAN.
I'M A PART TIME EMPLOYEE OF THE
CITY OF SACRAMENTO.
AND AN ORDAINED MINISTER.
I FELL IN THE FALL BECAUSE MY A
LOAN SERVICERS.
PROVIDED ME INCOMPLETE
INFORMATION ABOUT MY
OPPORTUNITIES AND CHOICES.
I URGE YOU TO VOTE. FOUR AB.
THREE SEVENTY SIX LISTED MORE A
BILL OF RIGHTS BECAUSE I KNOW
FIRST HAND WHAT HAPPENS.
WHEN SERVICERS GIVE YOU COMPLETE
INFORMATION?
I RECEIVED MY BACHELOR'S DEGREE
IN NINETEEN SEVENTY FIVE
COURTESY THE GI BILL NO DEBT
INCURRED. NINETEEN NINETY I
DECIDED TO GO BACK FOR A
MASTER'S DEGREE IN DIVINITY.
I TOOK OUT STUDENT LOANS IN THE
SOME OF FORTY THOUSAND DOLLARS.
N. IN ADDITION TO AYE A WORK
PART TIME [inaudible]
AND RECEIVED.
SCHOLARSHIPS FOR MY EDUCATION.
AFTER GRADUATING -- NINETEEN
NINETY THREE A WORK IN HUMAN
SERVICES [inaudible]
FOSTER CARE.
DOING FOSTER CARE THERAPEUTIC
FOSTER THE FOSTER CHILDREN.
AND ADULTS WITH DEVELOPMENTAL
DISABILITIES.
AND DURING THIS TIME I WAS ALSO
ORDAINED AND CALLED TO BE A
COMMUNITY MINISTER TO A SMALL
CHURCH IN NORTHERN MAINE. FOR MY
SERVICES AS MINISTER I RECEIVED
A HUNDRED DOLLARS.
A MONTH SPIKE BUT DURING THIS
TIME -- I RETIRED IN TWO
THOUSAND NINE AND DURING THE
TIME BETWEEN GRADUATION AND THE
TIME I RETIRED.
I DIDN'T MAKE OVER THIRTY
THOUSAND DOLLARS A YEAR
[inaudible]
MY LOANS. FOR THE MOST PART RAIN
DEFERMENT KOREAN FORBEARANCE
BECAUSE I WAS TOLD THOSE WERE MY
ONLY OPTIONS IF I COULDN'T PAY.
IN TWO THOUSAND TEN I CAME OUT
OF RETIREMENT TO START A PHD
PROGRAM HERE IN CALIFORNIA BUT
THAT PROGRAM.
BECAME TOO EXPENSIVE AND I
DIDN'T WANT TO INCUR.
MORE DEBT THAN I COULD AFFORD TO
PAY IN MY LIFETIME.
AND I THOUGHT I HAD ARRANGED BY
THAT POINT IN TIME MY LOANS MAY
EXISTING LOANS TO BE AN ZERO
REPAYMENT.
WHERE THE INTEREST WOULD NOT
CAPITALIZE? FOUR MINUTES SO
SECRETARY CONCEPTUAL
[inaudible]
SENATOR BRADFORD.
HERE CHIANG HERE BEING HERE COME
A NO [inaudible]
DOLLY [inaudible]
BROWSER.
SO HERE WAS SO [inaudible]
PORTANTINO [inaudible]
PORTANTINO HERE [inaudible]
I WAS UNDER THE ASSUMPTION.
ADD BY AT WITH INFORMATION FROM
MY STUDENT LOAN SERVICER THAT BY
LOANS WERE [inaudible]
WHERE CURRENT?
AND IN THIS YEAR REPAYMENT BUT
IN.
TWO THOUSAND EIGHTEEN I STARTED
RECEIVING LETTERS FROM THE
SERVICER.
AND THE DEPARTMENT OF EDUCATION.
YEP MY LAUNCHER GOING INTO
DEFAULT.
SO I CONTACTED THE SERVICER
WHICH WAS GREAT LAKES.
AND MOST ALL MY LOANS RETURN.
I TRIED CALLING THE DEPARTMENT
OF EDUCATION US DEPARTMENT OF
EDUCATION.
BUT THEY HAVE A LONG WAIT TIMES
IN ONE POINT IN TIME IS
PROJECTED TO BE UPDATE HOURS.
I DIDN'T HAVE THE TIME TO SPEND
ON THE PHONE TO WAIT I TRIED
OTHER TIMES.
WITH LESS WAIT TIME.
BUT I NEVER SHE WAS SUCCESSFUL
IN GETTING THROUGH AND IN TWO
THOUSAND IN NOVEMBER.
TWO THOUSAND EIGHTEEN I RECEIVED
A LETTER FROM A COMPANY CALLED
IMMEDIATE CREDIT RECOVERY.
STATING THAT THEY ARE CONTRACTED
WITH THE DEPARTMENT OF EDUCATION
TO COLLECT.
IN DEFAULT WOULDN'T LOANS.
AND THAT I HAD A LAW I HAD AN
AMOUNT OF THREE HUNDRED AND
TWENTY FOUR THOUSAND DOLLARS.
THAT HAD GROWN FROM MY FORTY
THOUSAND DOLLARS TO PAY BACK
IMMEDIATELY.
OR THEY ARE GOING CHIU GARNISH.
I CHAU SECURITY PAYMENT.
AND ANY WAGES AND INCOME TAX
REFUND.
IT WAS ALSO A STATEMENT TO CALL
IN FOR ASSISTANCE.
I DID.
SHE IF YOU'RE REPRESENTS THE
MONEY BECAUSE WE WANTED TO
GARCIA WHAT WOULD -- IMMEDIATE
CREDIT RECOVERY.
TOLD ME THAT.
I A PROVINCIALLY.
LET ME BACK UP A BIT
[inaudible]
OF THE STUDENT A. L. STUDENT
DEBT CRISIS GROUP.
AT A SEMINAR THAT I WENT TO THE
AND FOR ME THAT I WAS ELIGIBLE
FOR A ZERO OR A FIVE DOLLAR
REHABILITATION PROGRAM.
I CALLED.
MEDIA CREDIT RECOVERY THEY SAID
I WAS NOT ELIGIBLE.
BECAUSE MY OF FILE SHOWED THAT I
HAD BEEN ON NOW.
AT SOME POINT PRIOR.
TO TWO THOUSAND EIGHT I HAD NO
KNOWLEDGE OF THAT I CALLED THE
OF THE DEPARTMENT OF EDUCATION.
WHEN I FINALLY GOT THROUGH WITH
THEM THEY SAID YEAH THEY SOUGHT
BUT THEY HAD NO IDEA WHY IT WAS
THERE AND THEY PUT A NOTE ON MY
WHILE SAYING?
YEAH I WAS FINE TO GO.
CALLED IMMEDIATE RECRUITER
CREDIT RECOVERY BACK IN THAT SET
THE SAID THEY SAW THE NOTE.
I'M STILL NOT ELIGIBLE.
SO AT THIS POINT I'M STILL IN
DEFAULT I'M SEVENTY TWO YEARS
OLD WITH THREE HUNDRED THOUSAND
DOLLARS WORTH OF DEBT.
AND I'M A LOS.
SO I URGE YOU TO PASS.
HOUSE BILL. THREE TESTS MONEY
WE'RE GONNA ASK THOSE ADDITIONAL
WITNESSES IN SOME.
STATE YOUR NAME ORGANIZATION AND
POSITION ON THE BILL PLEASE.
REALLY ROSENBERG WITH SERVICE
EMPLOYEES INTERNATIONAL UNION ON
BEHALF OF OUR MEMBERS TO TAKE IT
ON FOR THEIR CHILDREN
GRANDCHILDREN AND THOSE HAVING
COMPLETED THEIR DEGREE BUT STILL
HAVE TO PAY BACK WE STRONGLY
SUPPORT THIS BILL THANK YOU
THANK YOU.
THIS CHAIR MEMBERS OF THE
COMMITTEE BRIAN NELSON ON BEHALF
OF THE AMERICAN FEDERATION OF
STATE COUNTY MUNICIPAL EMPLOYEES
I STRONG SUPPORT THIS IMPORTANT
PIECE OF LEGISLATION.
RESEARCHERS. TO TURN MEMBERS
GRAY HAZE ON BEHALF OF THE
CALIFORNIA ASSOCIATION OF
VETERANS SERVICE AGENCIES AND
STRONG SUPPORT THANK YOU.
THE GERMAN MEMBERS MIKE MONACAN
BEHALF OF MARYLAND AND BREED IN
THE CITY AND COUNTY OF SAN
FRANCISCO.
COURT.
THANK YOU.
THERE ANNA BACK ON BEHALF OF THE
CALIFORNIA ASSOCIATION OF
REALTORS IN STRONG SUPPORT
[inaudible]
Q..
A CONSTANT INTERNET COPPER IN
STRONG SUPPORT.
SAN MARTIN DE WITH CONSUMER
REPORTS PRONTO SPONSOR AS WELL
AS THE CALIFORNIA FOR ECONOMIC
JUSTICE COALITION SUPPORT.
THANK YOU.
EMILY REST EXECUTIVE DIRECTOR OF
CALPERS IN STRONG SUPPORT.
THAT THE COUSINS VOLUNTEER FOR
CALIFORNIA A A RP AND WE'RE
STRONG SUPPORT AT THIS BILL.
YOU.
WAS ARE YOU HAVE NO UNABLE TO
BOTH IN STRONG SUPPORT.
DANIELLE CAN OKAY EYES ARE ON
BEHALF OFTHE CALIFORNIA LOW
INCOME CONSUMER COALITION IN
SUPPORT.
PLEASE SEE A LUIS ON BEHALF OF
NEITHER COS THE NATION'S LARGEST
CIVIL RIGHTS ORGANIZATION FOR
LATINOS IN STRONG SUPPORT.
THANK YOU.
EVIDENCE GO FRIENDS COMMITTEE ON
LEGISLATION CALIFORNIANS SUPPORT
I AM ALSO THE MOTHER OF A HIGH
SCHOOL JUNIOR IN TWO HIGH SCHOOL
SENIORS.
AND I BELIEVE THIS IS CRITICAL
FOR OUR YOUNG PEOPLE.
ROBIN FORMER STUDENT LOAN
OMBUDSMAN AT THE CONSUMER
FINANCIAL PROTECTION BUREAU AND
NOW EXECUTIVE DIRECTOR AT THE
STUDENT BORROWER PROTECTION
CENTER.
PRACTICAL SPONSOR THIS BILL IN
ORDER SUPPORT.
NATALIE LIONS ATTORNEY WITH
HOUSING AND ECONOMIC RIGHTS
ADVOCATES WE EVER WE REPRESENT
HUNDREDS OF CALIFORNIANS WITH
STUDENT LOANS AND WERE STRONGLY
IN SUPPORT OF THIS BILL.
THANK YOU.
ANGELA PERRY THE INSTITUTE FOR
COLLEGE ACCESS AND SUCCESS IN
SUPPORT OF THE BILL.
BOB SHERMAN FORMER OFFICIAL WITH
BOTH THE CLINTON AND OBAMA
ADMINISTRATIONS AND SENIOR
FELLOW AT THE CENTURY FOUNDATION
IN SUPPORT.
ENTIRE ABRAMS THE EXECUTIVE
DIRECTOR OF STUDENT AT CRISIS A
PROUD CO SPONSOR IN THE BILL AND
ON BEHALF OF FOR OVER A HUNDRED
THOUSAND SUPPORTERS HERE IN
CALIFORNIA THANK YOU.
COULD YOU HAD ANY AND PROGRAM
DIRECTOR IT'S INTO CRISIS IN
SUPPORT.
SUSHIL JACOB ATTORNEY WITH
LAWYERS COMMITTEE FOR CIVIL
RIGHTS OF THE SAN FRANCISCO BAY
AREA IN STRONG SUPPORT
[inaudible]
Q..
CHRIS FOR SIGNS OF A CHIRLA
COALITION REMAIN IMMIGRANT
RIGHTS REPRESENT A YOUTH
ORGANIZATION THE CALIFORNIA
DREAM NETWORK -- AND I MIGHT ON
BEHALF OF MY COLLEAGUES FROM THE
UC STUDENT ASSOCIATION A STRONG
SUPPORT.
IS IN MIND ALSO MAY HAVE CALLED
NONPROFIT IS RON SUPPORT.
THANK YOU MISTER CHAIRMAN OF THE
COMMITTEE JEREMY SMITH YOUR
BEHALF OF THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL ALSO
IN SUPPORT.
THANK YOU MISTER CHAIR MEMBERS
MITCH SNIDER WITH CALIFORNIA
LABOR FEDERATION ALSO IN SUPPORT.
STEPHEN WHY SIMON INCOMING ONE
L. ADD MCGEORGE SCHOOL OF LAW
AND YOU SACRAMENTO IN STRONG
SUPPORT.
THE UC STUDENT ASSOCIATION IS
STRONG SUPPORT.
THANK YOU ANY ADDITIONAL
WITNESSES IN SUPPORT.
AS FOR COMING.
TINA WITNESSES IN OPPOSITION
THESE COMPORT.
THERE WAS READY.
YOU GOOD AFTERNOON GOOD
AFTERNOON AIR MEMBERS.
AND KATHY VAN AUSTIN ON BEHALF
OF THE STUDENT LOAN SERVICING
ALLIANCE.
HAPPY TO BE HERE THIS AFTERNOON
TO TALK ABOUT AB.
THREE SEVENTY SIX I DID ONE
EIGHT KNOWLEDGE THAT WE HAVE
RECEIVED OF THE LEDGE COUNCIL
VERSION OF THE AMENDMENTS THE
CLIENT IS LOOKING AT THOSE -- SO
WE WE ARE ABSORBING THEM THE
ONLY THING I WILL SAY IS THAT
SOME OF OUR MAJOR ISSUES THAT WE
HAVE REYES HAVE NOT BEEN TO
ADDRESS.
THIS ONE INTO -- ACKNOWLEDGE
THAT AND AND AND UNDERSTAND THAT
[inaudible]
I'M.
SALSA IS A AND NONPROFIT
MEMBERSHIP ORGANIZATION WE'VE
GOT ABOUT TWENTY MEMBERS.
OF THAT OUR LOAN SERVICERS AND
THE FEDERAL AND THE PRIVATE LAND
MARKETS.
OTHER MOSTLY NONPROFIT.
THEIR STATE AGENCIES.
OUR MEMBER SERVICE ABOUT 95% OF
THE LOANS THAT ARE OUT THERE --
THERE'S ONE POINT SIX TRILLION
BILLION DOLLARS IN STUDENT LOANS
OUT THERE SO WE SERVICE ABOUT
ONE POINT THREE MILLION --
THIRDS SUBJECT TO FEDERAL
OVERSIGHT AND REGULATION.
THE PRIVATE.
LOANS THAT ARE THAT ARE LEFT TO
STUDENTS.
I JUST WANT TO CLARIFY.
LOAN TERMS ARE SUCH BY THE
LENDER.
THEY ARE NOT SET BY US WE HAVE
NO CONTROL OVER INTEREST RATES.
REPAYMENT OPTIONS BENEFITS LATE
FEES THESE ARE NOT THINGS THAT
LOAN SERVICER CAN CONTROL OR OR
IS ALLOWED TO CONTROL
[inaudible]
AND SO.
ALL THESE FACTORS ARE SET BY
CONGRESS.
IT'S REALLY BEYOND OUR CONTROL
WHAT WE CAN CONTROL IS THAT THE
INFORMATION THAT WE GIVE IS
ACCURATE.
OF THAT IF WE MAKE MISTAKES THAT
WE CORRECT MISTAKES -- THAT WE
HAVE A ROBUST PROCESS IN PLACE
TO DO SO -- AND THE REALITY IS
THAT 85% OF OUR COMPLAINTS.
ARE RESOLVED BY THE FIRST
TELEPHONE CALL.
AND THE REST CAN BE A BIT MORE
COMPLEX SOME TAKE SOME TIME TO
RESOLVE OF MOST OF THEM TAKE
SEVEN OR LAST DAYS [inaudible]
AND UNFORTUNATELY.
WE UNDERSTAND THE INTENT OF AB
THREE SEVENTY SIX WE APPRECIATE --
THE SUPPORTERS AND THE AUTHOR'S
INTENT WITHOUT -- WE CERTAINLY
ARE ARE AT WE HAVE.
OUR OPPOSITION IS BASED ON
CERTAIN CRITERIA IN THE BILL I'M
GOING TO TALK ABOUT [inaudible]
I'M.
BUT THE PROVISIONS COULD BE VERY
COSTLY FOR US.
MANY OF OUR MEMBERS MORE THAN
HALF OF OUR MEMBERS ARE.
SMALL BUSINESSES.
SO SOME OF THE PROVISIONS THAT
ARE IN AB THREE SEVENTY SIX OF
COULD REALLY.
DAMAGE AND EVEN CLOSE THE DOORS
SOME OF THOSE BUSINESSES.
WHAT I WANT TO DO IS GO THROUGH
SOME OF THE CONCERNS THAT WE
HAVE?
OF FIRST OF ALL THE BILL
PROVIDES WERE OF PRIVATE RIGHT
OF ACTION.
AND OUR MEMBERS CAN BE SUED EVEN
IF THE REGULATOR HAS FOUND NO
FACTUAL BASIS FOR ACTION AGAINST
THE STUDENT LOAN SERVICERS --
YOU'VE -- AND OUTLET CAM
ACTUALLY TALK MORE ABOUT THE
PRIVATE RIGHT OF ACTION BECAUSE
SHE'S.
EXPERTEN NOT -- BUT WE DO HAVE
THE CONCERN THAT THE COSTS OF
LITIGATION.
COULD INCREASE OUR COSTS AND
THEREFORE THE COST OF THE
STUDENT.
BORROWERS -- SECOND MARKET
MONITORING INITIATIVES IN THE
BILL.
OF THEY HAVE BEEN REJECTED BY
OTHER REGULATORS.
I'VE OF LEAVE IT AT THAT -- THEY
ALSO CREATE SUBSTANTIAL BURDEN.
ESPECIALLY FOR SMALLER MEMBER.
DEPENDING ON HOW OFTEN
INFORMATION IS REQUESTED AND THE
AMOUNT OF THAT INFORMATION IT
CAN BE DAUNTING OVER BURDENSOME
AND ACTUALLY.
COULD DOES PROVE A OF AN OVERLY
HEAVY.
WEIGHT. FOR THESE SMALL
BUSINESSES AND THE WORD WE WOULD
LIKE TO SEE -- SOME REFINEMENT.
AND THOSE PROVISIONS.
OF LAST LEASE PAYMENT
APPLICATION IS CRITICALLY
IMPORTANT WE UNDERSTAND HOW
IMPORTANT THAT IS.
I FROM THE TIME WE RECEIVE UNTIL
THE TIME IT'S APPLIED TO THE
BORROWERS LOANS.
WE DO FEEL USE OF THE TERM BEST
INTERESTS OF THE BORROWER IS
VAGUE [inaudible]
I AND WE'VE PROPOSED CHANGES TO
THE LANGUAGE SPACE SPECIFYING.
HIM APPLICATIONS.
AND CONDITIONING LATE FEES -- BY
STRIKING STRIKING CERTAIN
PROVISIONS OF THE BILL -- TO
ENSURE THE BORROWER WE WHAT WE
WANT TO DO IS MAKE SURE THE
BORROWER IS.
CLEARLY INFORMED ACCURATELY
INFORMED.
ABOUT THE PAYMENT METHODOLOGY
THE PAYMENT ALLOCATION AND GIVEN
THE CHOICE.
IF IT IS TO PAY OFF A SMALLER
LOAN IN LIEU OF THE HIGHER
INTEREST RATE LOANS JUST TO GET
THAT LOAN DISPENSED WITH -- THAT
IS A STRATEGY THAT SOME PEOPLE
DO YOU PREFER TO USE -- AND WE
WE DO FEEL THEY NEED TO HAVE
THAT CHOICE [inaudible]
I AGAIN I JUST WANTED.
TO REMIND YOU THAT THE LATE FEES
OTHER REFERENCE IN THE SECTION
OF THE BILL THAT TALKS ABOUT.
YOU KNOW THE PERCENTAGE OF THE
OF THE LOAN.
HOW THE LATE FEE AS TO THE
PERCENTAGE OF THE LOAN?
AND OR A CAP ON LATE FEES WE DO
NOT SET THE LATE FEES.
WE DO NOT CHARGE LATE FEES. FOR
THE SERVICE OR SERVERS FOR
SERVICERS GET PAID A FLAT AMOUNT.
IS A MINIMUS AMOUNT.
ON AN ANNUAL BASIS.
I'M SO WE'RE HOPING TO GET SOME
OF THESE CONCERNS ADDRESSED --
WE FEEL THAT THERE'S COMPROMISE
THERE -- WE DO NOT -- YOU KNOW
WE'D LIKE TO REMOVE OPPOSITION.
I WOULD BE HAPPY TO WORK AGAIN
WITH THE CHAIR.
MEDI MEMBERS I HAD TO ADDRESS
SOME OF THESE CONCERNS AND
APPRECIATE BEING YOU HERE TODAY
AND THANK YOU THANK YOU MISTER.
I CAN STONE STONE ADVOCACY ON
BEHALF OF THE CIVIL JUSTICE
ASSOCIATION OF CALIFORNIA EVEN
OPPOSE UNLESS AMENDED PROVISION
OUR CONCERNS PERTAIN ONLY TO
CHAPTER THREE THE ENFORCEMENT
PROVISIONS NOT TO THAT
SUBSTANTIVE REGULATION IN THE
BILL.
THE BILL ALLOWS ON AN INDIVIDUAL
LAWSUIT ON BEHALF OF THE
BORROWER AND OTHER SIMILARLY
SITUATED -- PEOPLE WHICH CREATES
A STATUTORY MINIMUM AMOUNT OF
DAMAGES OF FIVE HUNDRED DOLLARS
AND A POSSIBLE FIFTEEN HUNDRED
DOLLAR.
PER VIOLATION THIS IS KIND OF A
QUIZ I CLASS ACTION LAWSUIT
WITHOUT THE LIMITED PROTECTIONS
THAT CLASS ACTION LAWSUITS IN
CALIFORNIA HAVE SO.
THE JACK AND I'M NO FAN OF
CALIFORNIA'S CLASS ACTION LAWS
WE ACTUALLY HAVE LIKE THE MOST
LIBERAL CLASS ACTION LAWS IN THE
COUNTRY AND THEY'RE FAR MORE
LIBERAL THAN FEDERAL LAW.
BUT WE DO HAVE RULES AROUND THEM
AND YOU HAVE.
TO THE CLASS HAS TO BE
ASCERTAINABLE THEY HAVE TO HAVE
COMMON ISSUES A LAWN FACT.
THE NAMES PLAINTIFF HAS TO HAVE
THE SAME KIND OF PROBLEM THAT
THE OTHER PEOPLE IN THE CLASS
HAVE.
AND THE NAMES PLAINTIFF HAS TO
ADEQUATELY REPRESENTS THE OTHER
CLASS MEMBERS AND THEN FINALLY
YOU'VE GOT TO SHOW THAT THE
CLASS.
OF MEANS OF RESOLVING THE
PROBLEM IS BETTER THAN ANOTHER
WAY OF RESOLVING THE PROBLEM IN
HERE FOR YOUR ALLOWING A LAWSUIT.
BY A BAR OR ON BEHALF OF OTHERS
SIMILARLY SITUATED YOU'RE KIND
OF CREATING THIS HYBRID CLASS
ACTION LAWSUIT WITHOUT THE EVEN
MINIMAL STRUCTURES THAT ARE
CLASS ACTION LAW REQUIRES AND
WHEN YOU COMBINE THEM PLUS THE
FIVE HUNDRED OR FIFTEEN HUNDRED
DOLLARS PER VIOLATION.
YOU MAY END UP WITH -- LAWSUITS
THAT ARE MORE ABOUT MONEY THAN
JUSTICE FOR THOSE REASONS THE
JACK MUST RESPECTFULLY OPPOSE
COPPER THREE OF THIS BILL.
THANK YOU IN ADDITION WITNESSES
IN OPPOSITION.
DECENT LANE CALIFORNIA BANKERS
ASSOCIATION ALSO OPPOSED.
ROBERT WILSON THE CALIFORNIA
CREDIT UNION LEAGUE OPPOSED.
MY APOLOGIES AND FROM THE
ATTORNEY GENERAL'S OFFICE
A LITTLE BIT LATE.
MY APOLOGIES THANK YOU.
IN ADDITION WITH THIS IS IN
OPPOSITION.
IN YOUR NINE BRING ABOUT WHAT
COMMITTEE ANY QUESTIONS BY THE
COMMITTEE.
MISS YOU STONE I WOULD JUST
CURIOUS.
ASKED.
TO THE RIGHT TO CURE IT WAS
ISSUE THAT WE DISCUSSED BRIEFLY
IS THERE ANY.
OPPORTUNITY TO ADDRESS THAT ARE
HOW DO YOU SEE.
THAT IS A PROBLEM WITH THIS BILL
AS STATED BY -- MISS VAN AUSTIN
THE RIGHT TO CURE WE NEED A
PRIVATE RIGHT OF ACTION WELL BUT
A RIGHT TO CURE PRIOR TO GOING
TO PRY RIGHT ACTION IS YOURS.
SO MY TO FIX THE PROBLEM AS SHE
STATED THE USER THEY RESOLVE THE
PROBLEMS WITH THAN. ONE PHONE
CALL SO BEFORE ONE WOULD BE
DRAGGED INTO A LAWSUIT I MISSED
YOUR IS IT.
WELL POTENTIALLY.
BY ME MOSTLY WHAT THE
OPPOSITION'S ASKING IS THAT WE
JUST STRUCK THE PRIVATE RIGHT OF
ACTION AND I THINK THAT'S AN
APPROPRIATE IN THIS CASE BECAUSE
THEN I UNDERSTAND THE
CONVERSATIONS AROUND PRIVATE
RIGHT OF ACTION BUT WHEN YOU
LOOK AT THE NUMBER.
OF PEOPLE HERE.
THE WHO ARE AFFECTED AND WE WE
WOULD THEN WITHOUT THE PRIVATE
RIGHT OF ACTION BE RELYING ON
THE ATTORNEY GENERAL OR LOCAL
LAW ENFORCEMENT.
OR EVEN THE WE'RE SETTING UP AN
ADVOCACY OFFICE UNDER THIS BILL.
THERE ARE MANY MANY MORE
COMPLAINTS AND GIVEN AT THAT THE
NUMBER OF COMPLAINTS THAT
HAPPENED ACROSS THIS COUNTRY.
I DON'T KNOW THAT WE COULD
NECESSARILY SOLVE IT SO IF WE
BUILT IN A STRUCTURE.
THAT WAS A RIGHT TO CURE OR
CHANGE THAT.
PRIVATE RIGHT OF ACTION THE WAY
IT'S CURRENTLY WRITTEN THEN.
IF THERE IS ILLEGAL ESPECIALLY
PERPETUAL KINDS OF PROBLEMS WE
WOULDN'T WANT TO BE SETTING UP A
SITUATION WHERE THERE IS A
KNOWING.
ABUSE OF BARS WHICH WE SEE AGAIN
AND AGAIN AND AGAIN UNTIL
THEY'RE CALLED ON OR UNTIL
THERE'S A LAWSUIT FILED OR UNTIL
AGAIN THE BORROWER WHO ARE OFTEN
HAVE REALLY LESS INFORMATION.
ABOUT HOW ALL OF THESE PIECES
WORK THEN THE SERVICER DOES.
THEIR LEAD TO DECISIONS WITHOUT
KNOWING HOW HARMFUL THOSE
DECISIONS COULD BE.
SO IF THERE IF WE BUILD IN A
RIGHT TO CARRY AND IF WE'RE IF
WE TAKE AWAY THE PRIVATE RIGHT
OF ACTION.
I WORRY IN THIS SPECIFIC CASE
THAT WE'RE SETTING UP BEHAVIORS
BY THE SERVICES TO PROVEN TO BE.
HARMFUL.
THE BAR IS IN SO MANY INSTANCES
THAT THAT WOULD YET PERPETUATE.
THAT SITUATION WOULD FOR THEM SO
I HAVE YET TO SEE A CONSTRUCT
THAT REALLY WORKS TO THE BENEFIT
OF THE BAR WAS IN IN THIS
SITUATION.
AND MOST OF THE WOOD NAVVY AT
THE LARGEST SERVICERS BEING SUED
IN I BELIEVE EVERY STATE THEY'RE
OPERATING.
SO THAT THEY CAN'T COME AS THEY
TRIED THREE YEARS AGO WHEN WE
DID THE LICENSING SAY LOOK WE'RE
THE GOOD GUYS DON'T INCLUDE US
IN THIS THAN REALLY WAT THAT
ASSOCIATIONS ASKING FOR IS THAT
THEY TEND TO BE EXCLUDED FROM
THE BILL.
WHICH MAKES NO SENSE SO I I'M
ALWAYS HAPPY TO TALK TO FACT
WE'VE TAKEN A NUMBER OF
AMENDMENTS TO TRY AND WORK WITH
THE OPPOSITION IN WAYS THAT THAT
MAKES SENSE.
WHAT I AM VERY LEERY OF DOING IS
CREATING MORE ADMINISTRATIVE
NIGHTMARE OR HEADACHE? FOR THE
THE BAR WAS WHO GETTING DRAGGED
AROUND AGAIN AND AGAIN AND AGAIN
AND THE WHOLE TIME THAT THIS
WORKS AGAINST THEM.
INTEREST IS STILL GROWING AND
THEY'RE ENDING UP PAYING MORE
AND MORE AND MORE BECAUSE OF THE
PROCESSES [inaudible]
SO.
I'M ALWAYS OPEN TO TRY AND FIX
THE BILL BUT THOSE ARE MY
CONCERNS ABOUT WEAKENING
PROTECTIONS FOR BORROWERS.
GREAT I I JUST WANT.
TO BE ON RECORD AND THAT THERE
WILL BE CONTINUE WORK BETWEEN
THE OPPOSITION IF THERE YOU SEE
A PATHWAY OF ADDRESSING THIS
ISSUE I KNOW I AM ALWAYS A WE
LOOKED AT IT AND WE COULDN'T
COME UP WITH A REAL ONE WILL
SOLUTION FOR THIS.
I AT THIS TIME SO.
SPORTING WE HAD A QUESTION --
CURRENTLY WE HAVE A DO PASS AS
AMENDED TO JUDICIARY IS THERE A
MOTION ON THIS MEASURE.
SO MOVED MOVED BY SENATOR
DORADOS CENTER ICE I MEAN
SOMEONE STONE WHICH ELECT TO
CLOSE.
I JUST I APPRECIATE YOUR
CONSIDERATION THE WORK THAT.
YOU'VE ALL DONE WITH US OVER THE
LAST NUMBER OF YEARS ON STUDENT
ON THAT THIS IS A CRITICAL BILL
THAT IS.
UNDER THE SPOTLIGHT NATIONWIDE
AND I'M HOPING CALIFORNIA DOES
THE RIGHT THING I KNOW YOU'RE.
THING AND I VERY MUCH APPRECIATE
THE OPPORTUNITY TO PRESENT HERE
TODAY THANK YOU SENATE -- I'M
NOT OVER MA'AM SECRETARY PLEASE
CALL THE ROLL WE HAVE TWO
PASSENGER SHURI ON A. B. THREE
SEVEN SIX PASSES AMENDED TO DO
DO.
SENATOR CENTER BRADFORD HI
[inaudible]
CHIANG -- CABALLERO.
DOLLY -- ALSO.
HUESO.
SENATOR PORTANTINO [inaudible]
THREE BELIEVE THAT MEASURE ON
CALL.
Q..
AND WE'RE MISSING IN OUR OTHER
AUTHORS WILL WAIT SO.
TAKE A BRIEF SUSPENSION AND
COMMITTEE
HERE ON A. B. EIGHT
FIVE SEVEN WHEN YOU'RE READY
MISTER TO BE YOU MAY BEGIN.
THANK YOU VERY MUCH MISTER
CHAIRMAN AND SENATORS APPRECIATE
YOUR CONSIDERATION OF AB.
EIGHT FIFTY SEVEN LET ME JUST
START BY SAYING I KNOW FOR SOME
THIS MIGHT BE A NEW IDEA -- BUT
THE IDEA OF A PUBLIC BANK IS
MODELED AFTER VERY OLD CONCEPT
AFTER THE PUBLIC BANK OF TOWARD
THE CODA.
WHICH THIS YEAR'S ENJOYED ITS
HUNDRED YEAR ANNIVERSARY OF
SUCCESS AS WELL AS PUBLIC BANKS
IN OTHER COUNTRIES -- LET ME
ALSO THE STATE THAT THIS IS A
BILL.
TO INCREASE LOCAL CONTROL OVER
TAXPAYER DOLLARS AND ENSURE THAT
THEY ARE INVESTED IN OUR
COMMUNITIES.
ARE BILL WOULD ESTABLISH A
PROCESS FOR LOCAL GOVERNMENT TO
CHARTER A PUBLIC BANK -- IT
DOESN'T CHARTER A PUBLIC BANK
DIRECTLY IT ESTABLISHES A LIKELY
LONG MULTI YEAR PROCESS WITH
MANY REGULATORY REQUIREMENTS.
OUR BILL WOULD REQUIRE A LOCAL
GOVERNMENT TO BE OF A CERTAIN
SIZE BEFORE APPLYING FOR BANKING
CHARTER.
WE TO COMMITMENTS DURING THE
PROCESS TO EXCLUDE SPECIAL
DISTRICTS AND REQUIRE SMALLER
COUNTIES UNDER A QUARTER MILLION
PEOPLE TO FORM A GPA.
IT WAS CRAFTED TO ENSURE THE
PUBLIC BANK ASSETS ARE
SAFEGUARDED REQUIRING COMPLIANCE
WITH ALL REQUIREMENTS OF
FINANCIAL INSTITUTIONS LAW AND
BANKING LAW.
AND ALL REPORTING AND
TRANSPARENCY REQUIREMENTS.
THIS BILL ALSO REQUIRES THAT
PUBLIC BANKS KEEP THE SAME
COLLATERAL GARMENTS AS PRIVATE
BANKS.
WE ACCEPTED A MINISTER IN THE
PROCESS TO REQUIRE PUBLIC BANKS
MAINTAIN FIFTY I. C. DEPOSIT
INSURANCE.
AND CONDUCT FEASIBILITY STUDIES
IN A BUSINESS PLAN TO ANALYZE
COST.
CAPITAL REQUIREMENTS FINANCIAL
PROJECTIONS AND LEGALITY ISSUES
WHEN APPLYING FOR BANKING
CHARTER.
I ALSO WANT TO SAY THAT WE
CRAFTED A BILL TO SUPPORT LOCAL
FINANCIAL INSTITUTE.
BILL SPECIFICALLY ENCOURAGES
PUBLIC BANKS WHERE POSSIBLE TO
PARTNER WITH LOCAL FINANCIAL
INSTITUTIONS SUCH AS CREDIT
UNIONS.
AND COMMUNITY BANKS TO CONDUCT
RETAIL SERVICES WITH THOSE LOCAL
INSTITUTIONS IN THIS IS MODELED
AFTER.
THE PUBLIC BANK OF NORTH DAKOTA
WHICH HAS SUCCESSFULLY PARTNERED
WITH THESE INSTITUTIONS FOR
PROFITABLE RETURNS -- I WANT TO
ALSO SAY THAT WE ARE HAPPY TO
ACCEPT THE COMMITTEE AMENDMENTS --
THAT PROVIDE CLARIFICATION THAT
A LOCAL AGENCY DEPOSITOR MAY
CHOOSE TO DEPOSIT MORE MONEY
INTO PUBLIC BANK THAN THE
INITIAL SHAREHOLDER EQUITY
PROVIDED THAT DDO APPROVE THE
AGREEMENT.
TECHNICAL MOMENTS THAT ACHIEVE
CONSISTENCY IN TERMINOLOGY
REGARDING RETAIL SERVICES.
AND I ALSO WANT TO STATE -- THAT --
WE ARE COMMITTING -- AND I KNOW
MY JOINT AUTHOR IS GOING TO BE
COMING DOWN SHORTLY. TO WORKING
WITH THIS COMMITTEE AND WORKING
ON AN AMENDMENT IN THE NEXT
COMMITTEE -- TO ALLOW VOTERS TO
WEIGH IN ON THE FORMATION OF A
PUBLIC BANK WITHOUT CONTRAVENING
CHARTER CITY CONSTITUTIONAL
AUTHORITY AD POWERS SO.
AGAIN -- APPRECIATE THE
CONSIDERATION THIS COMMITTEE
WANT TO THANK THE CHAIR AND YOUR
STAFF FOR SUBSTANTIAL.
DE WORK ON THIS AND RESPECTFULLY
ASK YOUR SUPPORT AND TURN IT
OVER TO OUR WITNESSES AT THIS
TIME THANK YOU NEXT WITNESS.
THANK YOU CHAIRMAN BRADFORD AND
MEMBERS OF THE COMMITTEE.
MY NAME IS SUE SHE'LL JACOB AND
I'M AN ATTORNEY AT THE LAWYERS
COMMITTEE FOR CIVIL RIGHTS OF
THE SAN FRANCISCO BAY AREA.
WHICH IS A MEMBER OF THE
CALIFORNIA PUBLIC BANKING
ALLIANCE THE SPONSOR OF AB.
EIGHT FIVE SEVEN OUR ALLIANCE
REPRESENTS A DIVERSE COALITION
OF ORGANIZATIONS.
FROM SAN DIEGO TO EUREKA.
ARE ENDORSERS INCLUDE TWELVE
CALIFORNIA CITIES AND COUNTIES.
INCLUDING THE FOUR LARGEST
CITIES LOS ANGELES SAN FRANCISCO.
SAN JOSE AND SAN DIEGO.
IN ADDITION WE HAVE MORE THAN
ONE HUNDRED FIFTY COMMUNITY
LABOR AND ENVIRONMENTAL
ENDORSERS.
HOW TO COUNT AMONG THEIR
SUPPORTERS BENEFICIAL STATE
FOUNDATION WHICH IS THE ECONOMIC
OWNER OF BENEFICIAL STATE BANK?
I CAN A COMMUNITY BANK IN
OAKLAND.
AND THE COOPERATIVE CENTER
FEDERAL CREDIT UNION.
WHICH IS.
A SEVENTY FIVE YEAR OLD.
AND CREDIT UNION IN BERKELEY
CALIFORNIA.
OUR BILL AIMS TO ADDRESS THREE
INTERCONNECTED PROBLEMS CITIES
AND COUNTIES FACE A DIFFICULT
CHOICE WHEN DECIDING WHERE TO
BANK THEIR MONEY.
WELL THE CONTRACT WITH MEGA
BANKS THAT A VIOLATED THE LAW.
AND AT THE CONSUMER PRODUCT
PRACTICES OR WILL THEY FIND
ALTERNATIVE SMALL BANKS THAT MAY
BE TOO SMALL TO HANDLE THE
COUNTY OR CITIES NEEDS.
HOW DO WE BRING BACK
CALIFORNIA'S LOCAL BANKS LOCAL
COMMUNITY BANKS HAVE SHRUNK
SHRUNK TO A QUARTER OF THEIR
FORMER SIZE?
HAVING BEEN SQUEEZING DEPLETED
BY MULTINATIONAL BANKS.
AND HOW DO WE SOLVE THE ISSUE OF
THE UNDER BANKED WHICH NATIONAL
BANKS HAVE FAILED TO ADDRESS IN
CALIFORNIA.
CALIFORNIA HAS SIGNIFICANT
UNBANKED UNDER BANK POPULATIONS
REPRESENTING OUR MOST
MARGINALIZED COMMUNITIES OUT OF
ELEVEN POINT FIVE MILLION
HOUSEHOLDS IN THIS STATE
CALIFORNIA HAS AN ESTIMATED
EIGHT HUNDRED FIFTY ONE THOUSAND
UNBANKED AND TWO MILLION UNDER
BANK HOUSEHOLDS.
THESE HOUSEHOLDS EITHER LACK A
BANK ACCOUNT.
OR HAVE ONE BUT STILL USE
PREDATORY FINANCIAL PRODUCTS
SUCH AS CHECK CASHING PAWN SHOPS.
NON BANK MONEY ORDERS.
SERVICES THAT SIPHON WEALTH FROM
LOW INCOME COMMUNITIES.
PUBLIC BANKING CAN ADDRESS THESE
PROBLEMS.
THROUGH A PARTNERSHIP MODEL
PUBLIC BANKS CAN WORK WITH LOCAL
FINANCIAL INSTITUTIONS TO REACH
THE UNBANKED AND UNDER BANKED OR
PUBLIC BANKS CAN DIRECTLY REACH
ON BANKED AND UNBANKED.
COMMUNITIES.
THEY CAN DO IT TOO PARTNERSHIP
BY PROVIDING INNOVATIVE NEW
PRODUCTS IN THE LOS GUARANTEES
TO LOCAL BANKS.
PUBLIC BANKS CAN PROVIDE A NEW
PARTNER LENDER FOR COMMUNITY
BANKS AND CREDIT UNIONS ONE THAT
DOESN'T WANT TO STEAL THEIR
CUSTOMERS OR PUT THEM OUT OF
BUSINESS BUT WANTS THEM TO
DRIVING GROW THE LOCAL ECONOMIES.
AND PUBLIC BANKS CAN GIVE
LOCALITIES MORE CONTROL OVER
THEIR FINANCES FINANCING COSTS
FOR LOCAL INFRASTRUCTURE POT.
PROJECTS ARE OFTEN DOUBLED TO
THE BOND MARKET OR WHAT BANK
LENDING.
USING A PUBLIC BANK WILL
SIGNIFICANTLY REDUCE THESE COSTS
BECAUSE PUBLIC BANKS CAN LEND AT
MORE REASONABLE RATES WHILE
RETURNING ALL THEIR INTEREST
PAYMENTS BACK TO THE CITY OWNERS.
THIS IS A MODEL THAT HAS BEEN
SUCCESSFUL IN THE LARGEST
ECONOMIES IN THE WORLD.
BY SETTING A UNIFORMED PAT FORDE
FOR CITIES AND COUNTIES TO FORM
PUBLIC BANKS.
AB EIGHT FIVE SEVEN GIVES LOCAL
GOVERNMENTS ANOTHER TOOL TO
ADDRESS THEIR OWN BOTTOM LINES
FOR THEIR RESIDENTS AND FOR
RESPONSIBLE INVESTMENT IN LOCAL
INFRASTRUCTURE HOUSING.
THANK YOU FOR YOUR CONSIDERATION
OF OUR BILLING WE ARCHER I VOTE.
IN ADDITION WHAT IS.
YOUR TO SOMEONE.
YOU MY NAME IS ANA HAS CELL
RESIDE IN SAN FRANCISCO.
I'M NO INVOLVED IN SOCIAL
ENTERPRISE INVESTMENTS MOSTLY IN
THE COMING TO LEVEL.
THEM AND I USED TO BE ON THE
EFFECTIVE LEADERSHIP TEAM OF ONE
OF THE MAJOR BANKS IN CALIFORNIA.
THE BASED ON THAT INSPECT A SPIN
THAT MAKES THE COMING OUT IN
SUPPORT OF THE BILL IN FRONT OF
YOU OF MAINLY FOR THREE REASONS.
NUMBER ONE PUBLIC BANKS CAN DO
AKON COMPLEMENT EXISTING
INSTITUTIONS BY DOING ADDITIONAL
UNDERWRITING.
IN THE PUBLIC INTEREST I'VE COME
TO THE MEETING VERY WELL A MANY
WELL MEANING PEOPLE IN THE
BANKING WORLD TWELVE THE PUBLIC
INTEREST IN MIND BUT WE HAVE TO
REALIZE THE STILL BOUND BY THE
FIDUCIARY RESPONSIBILITY TO
THEIR SHAREHOLDERS.
AND THE UNDERWRITING DECISIONS
THAT THEY MAKE HAVE ACTUALLY OF
OF AN EFFECT ON THE ENVIRONMENT
EMPLOYMENT EDUCATION AND HOUSING
IN.
THE END THE LOCAL -- MONKMAN
CEPEDA KEYS AND THEIR X..
LATER THIS THAT THEM OFF FROM
THE CITY OR THE COUNTY HAS TO
BEAR THE TREASURE AND IT'S
CONFIDENCE.
SO WE I THINK THAT.
TO OF FANS CAN DO A MORE
HOLISTIC UNDERWRITING DECISION
AND ALSO UNDERSTAND THAT BANKS A
POLL REALLY OPPOSED. TO THE BILL
AS IT IS COMING FROM A A SHELTER
PERSPECTIVES THIS IS A NEW
ENTRANTS INTO THAT MARKET BASE
BUT AFTER THE FIRM BELIEF THAT
THIS IS NOT A ZERO SUM GAME.
THE ECONOMIC BENEFITS OF
ECONOMIC DEVELOPMENT THAT THE
PUBLIC BANK WILL IN KOREA AND
LOCALLY WOULD ACTUALLY GIVE
ADDITIONAL BUSINESS OPPORTUNITY
ALSO FOR THE BANKS.
SECONDLY I THINK THAT COMING
INTO UNDERWRITING ALSO ON
UNLOCKS DORMANT OPPORTUNITIES SO
WHEN I WAS AT THE BANK WE HAD
ANOTHER MILLION.
A MILLION CONSUMER HOUSEHOLDS
FIFTY THOUSAND SMALL BUSINESSES --
LINDOS -- I WISH A POROUS AND
AND I WISH WE HAD COMMUNITY
INTELLIGENCE AVAILABLE FOR ALL
UNDERWRITING IT WOULD TAKE INTO
ACCOUNT.
THE FUTURE OF POLITICAL
INTENTIONS AND PRIORITIES.
IN IN THE COMMUNITIES SO THAT
YOU COULD MAKE PLANNING
DECISIONS.
LOOKING OUT A AND FUTURE MOST TO
IT LIFECYCLE SCORES AND LOOKING
BACK AT FINANCIAL STATEMENT THIS.
IS STILL TRUE TODAY THIS IS NOT
A FORWARD LOOKING STATEMENT
WHICH ALSO [inaudible]
ACT HEAVILY.
THE IMMIGRANTS AND TO EMERGING
ENTREPRENEURS AND THOSE ELM.
LOCATIONS AND THIRD LAST THIS
BILL OF COURSE CREATES AND
NECESSARY CONDITIONS. FOR A FOR
A FULL PUBLIC BANKS.
AND SAID IT WAS AT BEFORE AND
JUST BECAUSE THIS BILL PASSES
NOT A SINGLE.
PUBLIC BANK THAT WILL BE CREATED
THIS THESE DECISIONS UP TO THE
LOCAL AGENCIES TO LOOK AT THE
ECONOMIC CONDITIONS AND UNMET
NEEDS.
GO THROUGH THE PROCESS.
MMHM ED TO ESTABLISH A PUBLIC
BANK FOR THESE DECISIONS THANK
YOU CAN CONVERSATIONS IF IT
HAPPENED YOU BETHANY TO PASS THE
BILL TODAY.
AND TO THEM ON A SIDE NOTE YOU
SEE I HAVE AN ACCENT I EMIGRATE
FROM EUROPE.
BEFORE I CAME HERE MY POUNDS OR
I NEVER EVER HAD ACTUALLY BANK
ACCOUNTS WITH.
A PUBLIC BANKS THAT WAS ALWAYS A
THAT WITH PRIVATE BANKS WAS
ALWAYS PRIVATE BANKS OR THE
EQUIVALENT OF CREDIT UNIONS IT
WASN'T THE GIANT A POLITICAL
STATEMENT THIS IS JUST HOW IT
WAS.
AND THEY AND THEY JUST TEND TO
WORK THOSE INSTITUTIONS SOME
VERY WHERE.
THAT TOOK THERE WERE MANY MORE
RESULTS AND CAPABILITIES A QUIET
TO BUILT.
PUBLIC BANKS OF THIS IS NOT IN
FRONT OF THESE CAPABILITIES ON
OUT IN FRONT OF THE COMMITTEE.
A IT WILL BE VERY TOUGH ROW TO
MAKE THEM SUCCESSFUL AND I HOPE
THAT YOU CAN CLEAR THE ROADS
WITH THE A LEGAL FOUNDATION
TODAY [inaudible]
THANK YOU.
A SERMON SANTIAGO THAT YOU HAVE
STEVEN CHOI DRUNKENNESS I THINK
IT WAS JOURNAL BE BRIEF BECAUSE
THERE'S BEEN A FIFTY SIGNIFICANT --
AMOUNT A COMMENT AT THIS POINT
IN TIME SITE THANK YOU ALSO FOR
YOUR HARD WORK IN AND HELP US TO
GET -- THIS BILL TO A BETTER
PLACE -- LOOK PLAIN AND SIMPLE
THIS BILL DOES NOT DEVELOP
PUBLIC BANKS.
IT'S A MYTH THIS BILL BAIT ONLY
ALLOWS FOR A LOCAL
MUNICIPALITIES IF TO PROCEED
THAT SET UP A PUBLIC BANK WITH A
VERY RIGOROUS PROCESS.
NUMBER ONE YET HAVE THE
FEASIBILITY STUDY AND ONLY ONE
AND ONLY IF THIS IS REALLY
STUDIES -- STANDS MUSTER THEN
YOU CAN MOVE FORWARD HAVE TO
DESCRIBE A PUBLIC GOOD.
YOU STILL HAVE TO BE FDIC
INSURED -- YOU STILL HAVE TO
FOLLOW ALL FEDERAL WALT LAWS AND
REGULATIONS AND THEN ON TOP OF
THE IS THE STILL HAVE TO GO TO
THE CALIFORNIA DEPARTMENT OF
BUSINESS OVERSIGHT.
AND IT'S IT'S A PRETTY SERIOUS
PROPOSAL THAT WE HAVE HERE IN
FRONT OF ME BUT I WOULD JUST
STRESS THE IMPORTANCE OF GETTING --
THIS MEASURE OUT AND AND THE
IMPORTANCE OF HAVING A PUBLIC
BANK THAT SERVES THE PUBLIC GOOD
BECAUSE CURRENTLY THE SYSTEM IS
NOT WORKING.
MEAN BANKS ARE -- ARE ARE ARE
MORE -- MORE ARE MORE --
PRIORITIZING BUT WALL STREET
SAYS -- THAN WHAT IT'S BASIC
COMMUNITY SAYS -- AND WE'VE GOT
TO STOP AND THIS IS ONE AVENUE
DO THAT THANK YOU MISTER THANK
YOU.
ANY ADDITIONAL WITNESSES IN
SUPPORT.
YOUR CHAIR MEMBERS MIKE MONEGAN
ON BEHALF OF MARYLAND AND BREED
IN THE CITY AND COUNTY OF SAN
FRANCISCO IN SUPPORT. TO TERMINA
MEMBERS MORE TOP ON BEHALF OF
THE CITY OF SAN DIEGO IN SUPPORT
[inaudible]
THANK YOU.
WE NUMBER SOME BOTTLE OF COLOGNE
HE YOUR RING WHAT BY THE LESS --
GET ANOTHER SAMPLE YANG ANDROID
RANKLE POLITICAL WORK IN THOSE
OF US THAT I'M ALSO I KNOW SEE
NOTHING ELSE HAS GIVEN US DOES
HE CALLED LAYING OUT OF ANY
THERE SEE THAT.
AGAIN ME HER.
HE A I GET A LITTLE NAY VISIT
OUT WHEN YOUR MEAL TIME YOU GET
A YOU DON'T EVEN SEE THAT.
HE'LL.
GET IT IS THE MOST A LIVING --
HER NAME IS A BIOLOGICAL AND SHE
OUR DOES YOUR AYE VOTE -- SHE
WOULD LIKE. FOR KIDS TO GO TO
COLLEGE -- THIS IS HER DAUGHTER.
HI MY NAME IS STEPHANIE I GO TO
A LITTLE BUT I'M A FIFTH GRADER
AND I AM SUPPORTING.
PUBLIC BANKS BECAUSE I HAVE A
DREAM LIKE OTHER KIDS TO GO TO
MILLION OR COLLEGE -- AND BE
SOMEONE IN LIVE LIKE YOU.
THANK YOU THANK YOU GREAT JOB.
OF GOOD AFTERNOON MY NAME IS
REINA TELLO AND I'M HERE
REPRESENTING THE CALIFORNIA
PUBLIC BANKING ALLIANCE THAT
REPRESENTS OVER THREE MILLION
PEOPLE AND OVER A HUNDRED AND
FIFTY ORGANIZATIONS AND WE ARE
DRIVE WILL THANK YOU.
THANK YOU.
GOOD AFTERNOON DAN ABOUT HIS OWN
BECOME BEHALF THE CALIFORNIA
ROOM TO JUST ELAINE STRONG
SUPPORT OF THIS BILL AND THANK
YOU FOR BOTH A AUTHORS THANK YOU.
THANK YOU MISTER CHAIR MEMBERS
MITCH SNIDER WITH CALIFORNIA
LABOR FEDERATION ALSO IN SUPPORT
[inaudible]
THANK YOU.
JIM LIMBURG ON BEHALF OF THE
FRIENDS COMMITTEE ON LEGISLATION
TO CALIFORNIA IN SUPPORT.
THANK YOU.
KAREN SHOCK SPEAKING ON BEHALF
OF FOSSIL FREE CALIFORNIA THREE
FIFTY BAY AREA ACTION THREE
FIFTY CANAIS WHOLE VALLEY.
ANA SOUTHERN CALIFORNIA THREE
FIFTY AND IS.
INDIVISIBLE CALIFORNIA GREEN
TEAM IN STRONG SUPPORT THANK YOU.
MAYBE CITY WHEREVER IN THE
LEGISLATIVE COMMITTEE CHAIR FOR
PEACE AND FREEDOM PARTY OF
CALIFORNIA.
CAR CANDIDATES HAVE BEEN CALLING
FOR STATE BANK SINCE.
NINETEEN SEVENTY SO IT'S PART
TIME.
WE ALSO SHOULD MENTION WE USE
THE PORTAL HE SENT A LETTER
SUPPORT I NOTICE WERE NOT LISTED.
ON THE SUPPORTERS SO.
THERE MIGHT BE SOMETHING WRONG
WITH A PORTAL SYSTEM.
THANK YOU THANK YOU.
ANNALYNNE MATHIS OF THE UNITED
DOMESTIC WORKERS ASKED ME LOCAL
THIRTY NINE THIRTY IN FULL
SUPPORT.
THANK YOU.
UGH UGH AFTER MEN'S CURTIS I'M A
CO FOUNDER THE SF PUBLIC BEING
COALITION WE REPRESENT ABOUT A
DOZEN ORGANIZATIONS FROM UNITED
EDUCATORS SAN FRANCISCO
CALIFORNIA NURSES CALIFORNIA
FACULTIES THOSE THESE AND THAT
SUPPORT THIS MEASURE.
I JUST WANT A QUICK MINUTE JUST
TO REMIND EVERYONE THIS IS NOT A
RADICAL IDEA THE IDEA THAT THE
FACT THAT THE BANK.
THAT THE STATE OF NORTH DAKOTA
HAS ONE IT JUST KIND OF SHOWS
THAT WE'RE NOT TRYING TO DO
SOMETHING RADICAL HERE.
AND I WANT TO DEMYSTIFY THE MYTH
THAT PEOPLE IN PROFIT ARE
MUTUALLY EXCLUSIVE WHAT PUBLIC
BANKS DO IS ESSENTIALLY SAYING
THAT PROFIT PEOPLE AREN'T
ACTUALLY MUTUALLY EXCLUSIVE.
THE REAL QUESTION IS WHICH
PEOPLE ARE GETTING THAT PROFIT
AND WHAT WE SEE THIS TIME AND
TIME AGAIN BIG BANKS BEING A
MECHANISM TO FUNNEL PROFIT FROM
THE PEOPLE WHO.
THANK GREAT IT TO THE TOP 1% SO
I URGE AYE VOTE THANK YOU SO
MUCH.
GOOD AFTERNOON CHARLIE SHAMUS
AMIR WITH EVER TO SCHOOL RISING
REPRESENTING THE CHINESE
PROGRESS ASSOCIATION SOUTH OF
MARKET COMMITTEE ACTION NETWORK.
UP OF THEIR KELSO WHO SAID JUST
BECAUSE THE FILIPINO COMMUNITY
CENTER COMMON ADVOCATES AND THE
SURGICAL DAY LABOR PROGRAM WE
STRONGLY URGE YOU TO SUPPORT
THIS BILL THANK YOU THANK YOU.
HI NANCY PRICE I'M WITH THE
CALIFORNIA BANKING ALLIANCE
PUBLIC BANKING ALLIANCE.
AND I'M SPEAKING ON BEHALF OF
TWO NATIONAL ORGANIZATIONS THAT
HAVE MANY MEMBERS AND BRANCHES
IN CALIFORNIA FROM.
EUREKA TO SAN DIEGO.
THE ALLIANCE FOR DEMOCRACY AND
THE WOMEN'S INTERNATIONAL LEAGUE
FOR PEACE AND FREEDOM WHO
STRONGLY SUPPORT THIS THANK YOU.
THANK YOU ANY ADDITIONAL
WITNESSES IN SUPPORT.
SENIOR NINE WITNESSES OPPOSITION
[inaudible]
YOU READY.
AFTER MR TURN MEMBERS KAREN
LAYING ON THE FOR THE CALIFORNIA
ASSOCIATION OF COUNTY
TREASURER'S AND TAX COLLECTORS.
I WE DON'T QUARREL WITH THE THE
GOAL IN THE MISSION OF THE
SPONSORS OF THE BILL AND WE WE
THINK THAT THEIR INTENTIONS ARE
GOOD.
WHAT THE TERMS ARE TAX
COLLECTORS WANT TO COMMUNICATE
TO THIS BODY IS THAT?
THE ASSUMPTION THAT PUBLIC
DOLLARS.
UNDER THE CONTROL OF COUNTY
CHARGERS COULD BE DEPOSITED IN
THESE BANKS IS IS FALSELY CANNOT
CONCENTRATE.
THE POOL DOLLARS IN ONE PLACE
LIKE A PUBLIC BANK I WE TOOK THE
EXTRAORDINARY STEP OF
ESTABLISHING A PREEMPTIVE POLICY
ON THIS IN DECEMBER TWENTY
EIGHTEEN WHICH WE DID SHARE.
WITH THE PROPONENTS PRIOR TO
THEM -- SECURING AN AUTHOR THE
GOAL THE AMENDMENT TO TAKE
INSTEAD OF VERY HIGH BAR SO IT
WOULDN'T BE SORT OF A **** NILLY
SET UP.
BUT WE DO THINK THAT I WOULD BE
VERY VERY UNLIKELY THAT WOULD
ACTUALLY YIELD ON THE
ESTABLISHMENT OF A BANK YOU SONG
THEN ALICE'S WHICH IS ACTUALLY.
THE NUMBER OF YEARS IT WOULD
TAKE TO MAKE IT BE CASH FLOW
POSITIVE -- THERE'S NOT ENOUGH
MONEY COUNTY LAND TO SET UP A
BANKING CASH FLOW FOR THAT MANY
YEARS AND STILL PAY ALL THE
REGULAR BILLS THE COUNTIES HAVE
TO PAY.
I CAN PROMISE YOU IS THE LOCAL
GOVERNMENT LOBBYIST OF COUNTIES
ARE SITTING ON A LOT OF MONEY
THAT ATTRACTS YOUR ATTENTION
VERY QUICKLY.
AND THE LEGISLATURE LIKES TO
TAKE A GOOD LOOK AT WHAT
COUNTIES HAVE SO MUCH MONEY IF
THAT EVER HAPPENS.
AND SO WE WENT WE DON'T HAVE THE
MONEY TO CASH FLOW A BANK AND SO
TO CREATE A SITUATION WHERE IN
STATUTE THERE'S A TECHNICALLY
MECHANISM TO GO TRAIN
ESTABLISHED IT WILL PUT AN
ENORMOUS ENORMOUS AMOUNT OF
PRESSURE ON COUNTY TREASURER'S
THAT REALLY WOULDN'T EVER BE
ABLE TO PUT.
THAT MUCH OF THEIR MONEY IN ONE
THING THE KEY TO PUBLIC
INVESTMENT IS THE SPREAD OF RISK
AND TO PUT ALL OF THE COUNTY'S
MONEY WHICH IS ALSO THE SCHOOL
MONEY.
IN ONE ACCOUNT IS IS VERY
CONCERNING SO WE'RE JUST.
WE WANT TO MAKE SURE THAT FOLKS
ARE GOING INTO THIS WITH VERY
WIDE OPEN EYES ABOUT WHAT
COUNTIES CAN AND CANNOT DO WITH
PUBLIC DOLLARS.
ON AND FURTHER THE STUDIES THAT
HAVE COME BACK HAVE SHOWN THAT
IT'S VERY EXPENSIVE TO DO THE
COMPLIANCE THAT HAS TO BE DONE
IN ORDER TO KEEP YOUR BANK.
I IN LINE WITH ALL OF THE LAWS
FEDERAL AND STATE IS VERY
EXPENSIVE AND TIME CONSUMING AND
THE STUDY ITSELF COSTS MONEY AND
A LOT OF TIME AT THE STAFF LEVEL
SO WERE.
ALSO VERY CONCERNED ABOUT THE
PRESSURE TO SPEND THE PUBLIC'S
MONEY ON A STUDY THAT WE'RE
PRETTY SURE WE KNOW THE RESULTS
OF BUT WE MAY END UP BEING
PRESSURED TO DO THAT ANYWAY
BECAUSE THE PROPONENTS ARE VERY
COMMITTED VERY PASSIONATE FOLKS
AND WE'VE BEEN HEARING ABOUT
THIS FOR AWHILE.
SO WE'RE JUST CONCERNED THAT WAS
THIS IS SETTING UP SOMETHING
THAT WILL NEVER LEAD TO ANYTHING
BILL CREATE FALSE HOPE AND FOR
THOSE REASONS WERE ASKING FOR AN
ABOUT FACE THANK YOU VERY MUCH.
THANK YOU NEXT WITNESS.
MISTER CHAIR MEMBERS OF THE
COMMITTEE ON JASON LANE WITH
CALIFORNIA BANKERS ASSOCIATION
THANKS FOR THE OPPORTUNITY TO
SPEAK IN OPPOSITION TO THE
MEASURE WE'VE.
HAD MANY CONVERSATIONS WITH THE
AUTHOR IN THE PROPONENTS
ULTIMATELY WE MEAN REMAIN
FUNDAMENTALLY OPPOSED TO TE
MEASURE THERE ISN'T A SINGLE
FEASIBILITY STUDY THAT'S BEEN
DONE IN ANY CITY IN ANY STATE --
THAT SHOWS THAT A PUBLIC BANK
CAN BE SUCCESSFUL THAT WON'T
HAVE LOSSES -- SAN FRANCISCO HAS.
FEASIBILITY STUDY THAT'S OVER A
HUNDRED PAGES LONG IT HAS FOUR
MODELS ALL FOUR RESULT IN LOSSES
ONE DOESN'T MAKE MONEY FOR FIFTY
FOUR YEARS -- I APPRECIATE THE
FACT THAT CALIFORNIA IS NOW
TRYING TO IMPORT AND IDEA FROM
NORTH DAKOTA I DON'T EVER RECALL
THAT HAPPENING BEFORE -- BUT IN
THE CASE OF THE BANK OF NORTH
DAKOTA IT LOST MONEY FOR TWELVE
YEARS -- AND IT WAS FORMED A
HUNDRED YEARS AGO ITS GDP IS
LITERALLY THE SIZE OF OXNARD --
IT'S 2% OF CALIFORNIA'S GDP SO
IT'S CERTAINLY NOT AN APPLES TO
APPLES COMPARISON.
WE ARE CONCERNED PRIMARILY ABOUT
SOME OF THE DIALOGUE IS TAKING
PLACE TODAY IN OTHER COMMITTEES
ABOUT HOW THIS WILL BE A
PARTNERSHIP WITH COMMUNITY BANKS.
AND THAT IT WILL COMPETE THAT'S
FUNDAMENTALLY FALLS.
THE PREMISE.
OF A PUBLIC BANK THE ONLY WAY IT
OPERATES AND WORKS IS IF IT
STRIPS.
DEPOSITS OUT OF PRIVATE
INSTITUTIONS.
AND THE RHETORIC AROUND WALL
STREET I CAN APPRECIATE THAT BUT
THE REALITY IS WALL STREET BANKS
ARE NOT GOING TO FEEL THE IMPACT
OF DEPOSITS BEING TAKEN OUT OF
PRIVATE ENTITIES.
IT IS COMMUNITY BANKS STATE
CHARTERED INSTITUTIONS.
THAT WILL MOST ACUTELY FEEL THE
EFFECTS OF HAVING DEPOSITS TAKEN
AWAY FROM.
COMMUNITY BANKS WHO DO GOOD SOME
PRETTY PHENOMENAL STUFF IN THEIR
COMMUNITIES RELY ON PUBLIC
AGENCY DEPOSITS AS A SOURCE OF
LIQUIDITY TO THE CAN GO BACK
INTO THEIR COMMUNITIES AND MAKE
LOANS.
THIS BILL ESSENTIALLY PROPOSES
TO TAKE THOSE DEPOSITS AWAY.
THE INDUSTRY DOES NOT MIND
COMPETITION WE WILL COMMIT.
IT IS WHEN THAT COMPETITION IS
UNFAIR AND DONE ON A LEVEL
PLAYING FIELD THAT GIVES US
PAUSE IN THIS SITUATION.
WE ARE CREATING IN THIS BILL A
CORPORATE ENTITY THAT CORPORATE
ENTITY IS GOING TO ESCAPE
TAXATION THAT'S FUNDAMENTALLY
UNFAIR.
THE CORPORATE TAX RATE IN
CALIFORNIA IS EIGHT POINT 8%
BANKS IN THE STATE PAY TEN POINT
8% IT IS UNFAIR TO THOSE
INSTITUTIONS TO TAKE THEIR
DEPOSITS AND GIVE THEM TO AN
ENTITY THAT WILL PAY NO INCOME
TAXES.
I'VE HEARD THE AUTHOR STAY.
IN RETORT TO THAT ARGUMENT THE
CREDIT UNIONS DON'T PAY INCOME
TAXES BUT THE REALITY IS THE
IRIS STREET CREDIT UNIONS THE
WAY THEY DO FOR ONE SPECIFIC
REASON.
IS BECAUSE THEY HAVE TO HAVE A
MEANINGFUL WRITTEN AND FORCE
COMMON BOND REQUIREMENT FOR ITS
MEMBERS TYPICALLY INCLUDING
EMPLOYERS EMPLOYEES BUSINESSES --
AND MEMBERS ASSOCIATED IN A
PARTICULAR ORGANIZATION AS FAR
AS I CAN TELL IN AB FIFTY SEVEN
ANYONE CAN WALK IN THE STREET
AND USE A PUBLIC BANK SO THE
ARGUMENT.
RELATIVES TAXATION CREDIT UNION
SIMPLY DOES NOT APPLY.
WE ARE TO KNOW VOTE ON WHAT THE
LA TIMES CALLS A MASSIVE WASTE
OF TIME AND MONEY.
THANK YOU THANK YOU NEXT WITNESS.
MARGARET GLAD SHE NUMBER HAVE
THE CALIFORNIA COMMUNITY BANKING
NETWORKED WE TO OPPOSE THIS BILL
WE ARE CONCERNED ABOUT THE
IMPACT AND TAKING AWAY DEPOSITS
FROM LOCAL.
COMMUNITY BANKS THAT ARE
REINVESTING IN THE COMMUNITIES --
UNDERSTAND THE AUTHOR'S INTEREST
IN TRYING TO MAKE BOTH THE
BANK PARTNERSHIP WORK BUT
UNFORTUNATELY WE THINK THIS BILL
DOES NOT GET THERE.
AND WE'RE NOT WE DON'T THINK THE
COMMUNITY THEY PUBLIC BANKING
MODEL WILL BE ABLE TO GET THERE
WITHOUT HARMING OUR LOCAL
INSTITUTIONS AND FOR THOSE
REASONS WERE PASSED.
THANK YOU.
ROBERT WILSON THE CALIFORNIA
CREDIT UNION LEAGUE OF
OPPOSITION THANK YOU.
ELLERY NARROW FOR THE CALIFORNIA
CHAMBER OF COMMERCE WE ARE IN
OPPOSITION WE ARE.
EXTREMELY WORRIED ABOUT THE LOSS
OF COMMUNITY BANKS WERE MOST.
SMALL BUSINESSES DO THEIR
BUSINESS.
THANK YOU.
ANY ADDITIONAL WITNESSES IN
OPPOSITION OUR BRING IT BACK TO
THE COMMITTEE ANY QUESTIONS BY
THE COMMITTEE [inaudible]
SENATOR DORADO.
YES I I THINK THOSE ARE.
SOME OF THE ISSUES RAISED BY THE
OPPOSITION -- I'D LIKE TO SEE IF
THERE'S A RESPONSE SURE SOME OF
THEM.
BUT AND THEN I HAVE A COUPLE OF
OTHER.
SURE I OF THEIR NUMBER VICIOUS
ARRAYS ON THE TRY TO GO THROUGH
A FEW OF THEM SO -- THERE HAVE
BEEN A NUMBER OF ATTEMPTS TO
STUDY HOW THIS COULD BE DONE.
AND THERE HAVE BEEN STUDIES THAT
SHOW THAT THIS IS GOING TO BE
DIFFICULT AND I AB TOLD THE
PUBLIC REPEATEDLY ABOUT THIS
BILL -- THAT THE RISK WITH THIS
BILL IS NOT THAT WE CREATE A LOT
OF PUBLIC BANKS THE RISK OF THIS
BILL.
IS WE'VE ESTABLISHED SO MANY
REQUIREMENTS. TO ENSURE THAT --
WE'RE NOT CREATING -- ANY UNFAIR
ADVANTAGE FOR PUBLIC BANKS --
THAT THE RISK IS THAT WE ARE
UNABLE TO FALL APART A PUBLIC
BANK THAT A JURISDICTION WOULD
NOT BE ABLE TO QUALIFY IN
CHARTER PUBLIC BANK THAT'S REAL.
THAT BEING SAID WE HAVE MANY
ISSUES WITH SOME OF THE STUDIES
THAT HAVE BEEN DONE AND HAPPY TO
TALK TO YOU ABOUT THAT IN
GREATER DETAIL IF THAT'S OF
INTEREST.
SO THAT'S ISSUE NUMBER ONE ISSUE
NUMBER TWO AROUND CREDIT UNIONS
AND COMMUNITY BANKS.
THE PUBLIC BANK OF NORTH DAKOTA.
EXPLICITLY STATED A POLICY TO
WORK IN PARTNERSHIP WITH THOSE
LOCAL COMMUNITY BANKS SO THE
IDEA WAS CRITICALLY IN THE
RETAIL SERVICES AREA -- FOR THE
PUBLIC AND TO BE A A A BANKS
BANK.
I THAT WHERE POSSIBLE -- RETAIL
SERVICES ARE PROVIDED BY THOSE
LOCAL INSTITUTIONS AND THAT IS
THE LANGUAGE IN THIS BILL.
WE HAVE ASKED THE CREDIT UNIONS
AND COMMUNITY BANKS WE'VE HAD A
NUMBER FOR GOOD MEETINGS WITH
THEM.
IF THERE ARE ADDITIONAL
PROPOSALS ON LANGUAGE TO ENSURE
FOLKS THAT THAT IS SOMETHING WE
OUGHT TO DO.
OPEN TO THAT BECAUSE THE THE THE
THOSE OF US WERE ADVOCATES FOR
PUBLIC BANKS WE HAVE NO INTENT
OR NO DESIRE TO UNDERCUT.
CREDIT UNIONS FOR COMMUNITY
BANKS BUT WHAT I WILL SAY IS
THAT THE LARGEST WALL STREET
BANKS.
THEY HAVE BY VIRTUE OF THEIR
PRACTICES OVER THE YEARS -- BEEN
ABLE TO SWALLOW MANY THIS
COMMUNITY BANKS IN FACT -- SINCE
TWENTY PLUS YEARS AGO WE USED TO
HAVE -- THREE TIMES AS MANY
COMMUNITY BANKS AS WE DO TODAY
BECAUSE OF WHAT WALL STREET
PRACTICES HAVE HAVE ENGAGE AND
SO ARE.
PROFOUND HOPE WITH THIS BILL IS
THAT PUBLIC BANKS WILL BE
COMPLEMENTARY TO COMMUNITY BANKS
AND CREDIT UNIONS AND BE ABLE TO
TO MOVE THAT FORWARD -- WANT TO
SEE IF THERE ANY OTHER ISSUES
THAT YOU WOULD LIKE ME TO
ADDRESS AT THIS POINT THOSE ARE
A FEW POINTS THAT THAT WERE
RAISED.
YEAH THEY ALL OF THE DETAILS OF
WHAT IT WOULD TAKE THEIR WHAT.
CAN.
YOU DO THAT AND I DO THINK THAT
THERE ARE [inaudible]
SIGNIFICANT.
THE WAY THAT HE COULD
[inaudible]
ARE TREATED.
ADDITIONAL BANKS AND THAT
[inaudible]
ALWAYS [inaudible] ONE THE
HEIGHT OF THERE WAS THERE ARE
DOWN LOW INCOME WORKERS.
I MEAN THE COLOR.
WE HAVE BEEN.
AS FAR AS PROVIDING THE SERVICES
THAT WE NEED.
AND THAT CERTAINLY IS A BIG
DETRIMENT TO EVERYBODY IT'S OUR
COMMUNITIES THAT ARE HURT BY NOT
HAVING THE THE BANKING SERVICES --
ONE COM I SEE HERE IN TERMS OF
THE THE CHAMBERS OPPOSITION THAT.
A WE WOULD JEOPARDIZE TAXPAYER
FUNDS AND POLITICALLY MOTIVATED
INVESTMENTS.
I DON'T KNOW WHAT YOU MEAN BY
THAT -- EXCEPT THAT ON THE
ISSUES IN OUR COMMUNITIES.
WHATEVER YOU WANT TO CALL THEM
ARE VERY REAL VERY REAL AS FAR
AS WORKING PEOPLE OUR NEEDS OUR
NEEDS -- TO HAVE ACCESS TO
CAPITAL OUR NEEDS TO HAVE ACCESS
TO LOANS -- AND THEY'RE
VIRTUALLY ALL THE TRADITIONAL
BANKS ARE VIRTUALLY NONEXISTENT
IN MOST OF OUR COMMUNITY SO --
AND THE I DON'T KNOW THAT THAT'S
GOING TO BE FULLY REPLACED BY
JUSTIN ONLINE.
OF SERVICES SO -- I AGAIN I
THINK THAT.
THE THE CONCEPT AS YOU'RE SAYING.
IS A GOOD ONE OF THE DEVIL'S IN
THE DETAILS AS FAR AS REALLY
MOVING IT FORWARD AND I I THINK
WE OUGHT TO MOVE FORWARD WE ARE
USING TOO MUCH BY NOT HAVING.
BANKS THAT REALLY.
TAKE THE COMMUNITY INTO ACCOUNT
PRIMARILY.
AND I DON'T MEAN AT THE RISK OF
LOSING.
OF FINANCIALLY.
THANK YOU AND IF I CAN RESPOND
TO TO ONE PART OF THAT -- THE
THE CHAMBER REFERENCE
POTENTIALLY JEOPARDIZING
TAXPAYER FUNDS AND HOW.
BANKS ADDRESS COMMUNITIES -- IN
AS IF YOU PUT IT.
THE THE THRUST OF WHY WE'RE
DOING THIS IS -- WHAT I THINK
MANY IN CALIFORNIA BELIEVE HAS
BEEN THE FAILURE AND I REFER TO
THIS AS THE LARGEST WALL STREET
BANKS -- THE THE THE LOBBYIST
FOR THE COMPANY BANKING
ASSOCIATION IS MENTIONED.
WHAT WE HAVE TALKED ABOUT I WANT
TO JUST POINT OUT IT'S BEEN
INTERESTING TO SEE THE EVOLUTION
OF?
THE RHETORIC FROM THE BANKING
INDUSTRY VIS A. B. R. BILL
BECAUSE INITIALLY WHAT THEY SAID
WAS THAT THE BANKING INDUSTRY
DOES MEET THE PUBLIC'S NAY.
AND AS YOU HAVE JUST WELL
ARTICULATED -- IT I THINK IF YOU
ASK MOST OF OUR CONSTITUENTS
THEY WOULD NOT SAY THAT THE WALL
STREET BANKS ARE SERVING THE
PUBLIC -- WHETHER BE CONSUMERS
FOR EXPERIENCING PREDATORY
LENDING WHO HAD MILLIONS OF BANK
ACCOUNTS OPEN UP IN THEIR NAMES
OF LOST HUNDREDS OF BILLIONS OF
DOLLARS IN INTEREST PAYMENTS.
HOMEOWNERS WHO'VE BEEN
VICTIMIZED BY THE MORTGAGE
FORECLOSURE CRISIS STUDENTS
VICTIMIZED BY GREED LENDERS
SMALL BUSINESSES DENIED ACCESS
TO CAPITAL.
FOR THE PUBLIC WHO'S DOLLARS OUR
DOLLARS ARE TAXPAYER DOLLARS ARE
BEING INVESTED AGAINST OUR
VALUES AND FOSSIL FUEL
INDUSTRIES GUN MANUFACTURERS
PRIVATE PRISONS OR COMPANIES
WITH UNFAIR LABOR PRACTICES AND
WHAT WE'RE SAYING IS WE NEED TO
THINK OF AN ALTERNATIVE.
AND THAT IS WHAT WE'RE PROPOSING
HERE BUT THAT BEING SAID I
WANTED JUST A CLOSE WITH THE THE
CHAMBER.
HAS TAKEN THIS BILL OFF OF ITS
INITIAL JOB KILL LIST BECAUSE WE
HAVE PLACE SO MANY REQUIREMENTS.
ON WHAT IT TAKES FOR A LOCAL
JURISDICTION GET CHARTER THAT I
THINK -- THERE MANY WHO THINK
THAT THIS MAY NOT HAPPEN AND
THAT MAY BE TRUE -- BUT WE WANT
TO BE AS FISCALLY PRUDENT
POSSIBLE WHICH IS WHY WE'VE
AGREED TO ALL THESE REQUIREMENTS.
AND WE'LL SEE WHAT THIS
EXPERIMENT IT'S TO THANK YOU ANY
ADDITIONAL QUESTIONS COMMENTS
CENTER HUESO.
THANK YOU MISTER CHAIRMAN I JUST
BE BRIEF AND NOT MANY OF YOU
KNOW I'VE I'VE WORKED ON THIS
ISSUE FOR A WHILE AND COURSON
LISTED.
IN THE ON THE ANALYSIS IN THE
BILL ANALYSIS GOING BACK -- TO
TWENTY ELEVEN WHEN.
I TRY -- TO PUSH FOR THE ABILITY
TO CREATE A STATE BANK AND IT
WAS LIMITED TO A TASK FORCE.
ESTABLISHING A BLUE RIBBON
COMMITTEE OF SORTS TO ANALYZE
AVAILABILITY OF CRANE A BANK AND
THAT WAS VETOED BY THE GOVERNOR.
THEY DIDN'T EVEN WANT TO EVEN
STUDY THE ISSUE [inaudible]
AND I WHAT'S WRONG WITH STUDY AN
ISSUE WHAT'S WRONG WITH LOOKING
OF THE VIABILITY IN OF COURSE
OTHERS A LOT OF OPPOSITION TO
THIS CONCEPT.
AND I AND I UNDERSTAND WHY BUT
AGAIN I I ALSO SERVED IN LOCAL
GOVERNMENT AND WHEN WE WHEN IT'S
TIME FOR US TO PROVE OUR OUR
AGREEMENT AND BACK THEN IT --
THE THE THE SERVICE PROVIDER WAS
BANK OF AMERICA AND WE WERE
THERE'S AND WE ASK SO WE WE
ASKED -- ASKED HIM POINT BLANK
AT IN IN A SETTING SUCH AS THIS
IS SOMEBODY'S GONNA DO TO
REINVEST OUR COMMUNITY AND SAID
NOTHING NOTHING MORE NOTHING
LESS.
AND I SAID WELL YOU KNOW THIS IS
WERE GIVEN YOUR DEPOSITS HERE
THIS IS A CITY WITH TWO BILLION
DOLLARS WORTH OF DEPOSIT THAT
HELPS YOU.
THEY SAID YOU WERE DOING YOUR
FAVOR.
THIS REALLY DOESN'T HELP US A
NEW ANY WHICH WAY WE'RE
PROVIDING YOU A SERVICE AND
WE'RE GIVING YOU A VERY
COMPETITIVE RATE.
AND THEY WENT ON TO TALK ABOUT
WHAT A GREAT DEAL WE'RE GETTING.
AND I NEVER FORGOT THAT.
I NEVER FORGOT THAT AND THROUGH
THE YEARS BEEN RAISED IN A LOW
INCOME NEIGHBORHOOD BEING RAISED
IN A PLACE WHERE BUSINESSES.
DIDN'T GET BANK LOANS AND AND
THERE ARE THERE ARE SPECIFIC
PLACES WERE BANKS JUST GENERALLY.
IN THE PAST AND AND IN MANY
CASES TODAY DON'T LAN.
AND OUT OF THE LOOP AND AND WHEN
YOU LOOK AT STATISTICS. TEN A A
10% OF EVERY SINGLE BUSINESS
ASKED FOR A BANK LOAN GETS IT
AND WE ONLY 10% 90% ARE DENIED
AND WHAT WHEN YOU ALSO LOOK AT
THE SYSTEM THAT WE HAVE IF
YOU'RE RICH.
YOU GET A LOW INTEREST RATE.
NO COLLATERAL NEEDED.
NO PROBLEM GETTING ALONE
AUTOMATIC APPROVAL BUT IF YOU'RE
POOR.
COLLATERAL [inaudible]
THE NILE.
WE HAVE A SYSTEM THAT LED.
WE WE NEED TO MAKE IT WORK
BETTER.
AND WE NEED TO FIND WAYS TO GET
BANKS TO INVEST IN OUR
COMMUNITIES AND AND DO I FEEL
THE BANKS ARE MAKING GOOD
EFFORTS I DO.
I THINK THEY ARE TRYING -- I
THINK -- THEY ARE MANY CASES
THERE ARE WORKING ESTABLISHING
RELATIONSHIPS AND A AND I'M NOT
HERE TO JUST BE CRITICAL IN SAY.
BANKS ARE FAILING AT EVERY LEVEL
BECAUSE I FEEL.
BANKS ARE DOING A GREAT JOB IN
CREATING NICHES AND AND AND
REACHING OUT AND FINDING ALL
EVERY NOW AND THEN.
YOU KNOW -- Là I REMEMBER THE
THE THE REPRESENTATIVE FROM THE
GOVERNOR THAT WAS -- USED TO BE
A FORMER BANK OF AMERICA
EXECUTIVES SAID.
THAT YOU KNOW ONE YEAR WE
DEVELOPED A A HUNDRED MILLION
DOLLAR UND FOR SPECIFICALLY LOW
INCOME NEIGHBORHOODS.
AND I SAID YEAH WELL ONE YEAR.
WHY CAN'T YOU DO THAT EVERY YEAR?
AND WHAT I CAN NOT ONLY BE A ONE
TIME PILOT PROGRAM IN HIS
RESPONSE WAS YOU KNOW WE FOUND.
IN THAT EFFORT THAT THE DEFAULT
RATES DID NOT INCREASE.
THEY ACTUALLY LOWERED.
WELL WELL INTO UNDERSERVED
NEIGHBORHOODS ARE DEFAULT RATES
WENT DOWN.
AS TO THE WHY CAN'T YOU DO THAT
ALL THE TIME.
I HAVE AND I THINK THIS IS JUST
A OFF ON THAT PRINCIPLE IF IF
CITIES CAN'T DO THAT THEY
PROBABLY WON'T.
BUT THEY WON'T BE DOING ANYTHING
DIFFERENT THE BANKERS ARE DOING
NOW AND THAT'S EXCEPT THE IN.
A TAXPAYER DEPOSITS RIGHT NOW
BANKS EXCEPT TAX PER DEPOSITS
THAT'S THE CONCEPT WE DEPOSIT.
AND AND MAY BE FOR ME.
IF IF IF WE USE THIS AS A
MECHANISM MAYBE BANKS WILL COME
TO THE CITY'S LATER ON SO WE
WILL INVEST.
IN YOUR NEIGHBORHOODS AND WE
WILL PROVIDE LOANS TO THE
UNDERSERVED.
AND WE CAN DO IT BETTER THAN YOU.
AT AND MAYBE WE NEED TO ANSWER
INJECT A LITTLE BIT OF
COMPETITION IN THIS PROCESS AND
AND I BELIEVE I I'M WHAT THE
BANKERS IT SHOULD BE A FAIR
PROCESS.
THE THE MUNICIPAL BANKS IF THEY
ARE CREATED THEY SHOULDN'T HAVE
ANY -- OTHER TOOL THE BANKS THAT
ARE NOT AVAILABLE TO THE BANKS I
AGREE WITH THEM THERE BECAUSE IT
WON'T WORK OTHERWISE BUT AT THE
SAME TIME.
THIS COULD BE A TREMENDOUS TOOL
HELPING A LOCAL GOVERNMENTS
BETTER SERVE THE COMMUNITY AND I
I BELIEVE IT'LL WORK.
A AND FOR THE ONE SAID -- CAN'T
MAKE IT HAPPEN THEY PROBABLY
WON'T BUT AT LEAST THEY WILL
HAVE A BETTER RELATIONSHIP WITH
THE LOCAL BANKING COMMUNITY.
THANK YOU.
THANK YOU CENTER WHAT SO IS
THERE ANY OTHER COMMENTS BY
COMMITTEE MEMBERS.
HI MOM I WILL ALSO ADD MAYON
THOUGHT TO THIS ISSUE I WANT TO
FIRST COMMEND BOTH AUTHORS
BECAUSE THIS IS A HERCULEAN.
TASK TO MOVE THIS MEASURE FORD
IT'S A CONCEPT I THINK IT'S TIME
IS LONG OVERDUE -- I THINK
YOU'VE HEARD FROM THE COMMITTEE
MEMBERS TO CHALLENGES THAT WE
FACE IN MANY OF THESE
COMMUNITIES AS IN THIS NOT TO
BEAT UP THE BANKS AT ALL BUT TWO
THINGS YOU WILL NOT FIND.
AND LOW INCOME COMMUNITIES
PHARMACIES AND BANKS.
AND IT'S REALITY YOU WILL NOT
FIND A PHARMACY OR BANK IN A LOW
INCOME COMMUNITY SO IF YOU'RE
NOT WILLING TO LOCATE ONE THERE
THEN IF YOU HAVE A COMMUNITY AND
MAKE.
A MUNICIPALITY IS WILLING TO
INVEST THEIR MONEY THERE AND YES
THERE'S REST AND I TO HAVE BEEN
A LOCAL ELECTED OFFICIAL AND I
DO HAVE THOSE CONCERNS.
ON LOCAL JURISDICTION OVER
STANDING THEIR LEVEL OF
EXPERTISE I COME FROM THE CITY
OF GUARDINO WERE WE ALMOST WENT
BANKRUPT AND NINETEEN NINETY
SEVEN BECAUSE WE STARTED A
MUNICIPAL INSURANCE CORPORATION.
AND SOUL I'VE SHARED MY BIT OF
CAUTION TO BOTH AUTHORS AS TO
WHY SOME OF THE I'M IMAGE THAT
WE ASK FOR TO KIND OF SAFEGUARD
AND MAKE SURE THE COMMUNITY
HOUSING VOICE AND THE CITY AND
THOSE.
BUT TO STAY HERE THE OPPOSITION
AND CONTINUES TO SAY BASED ON
WHAT YOU'RE SAYING THAT IT
PROBABLY WON'T WORK THEN WHY THE
OPPOSITION.
I A IT SEEMS LIKE MANY OF YOU
BELIEVE THAT.
IT WILL NOT WORK SO [inaudible]
LET IT.
HI I MEAN I I DON'T THINK WHY
WOULD WE NOT LEAST.
LET IT SEE IF IT COULD FLY OR
NOT BUT I THINK IT'S A CONCEPT
IT'S LONG OVERDUE -- I I THINK
THERE IS A NEED AND I TALKED TO
SOMEONE DURING THIS ISSUE AND IF
SOMEONE WHO WALKED INTO A BANK I
WILL NOT IDENTIFY THAT BANK BUT
THEY HAVE REPRESENTATIVES HERE.
AND THEY WALKED IN TO GET CHANGE
FOR A HUNDRED DOLLAR BILL.
AND THEY WERE DENIED CHANGE FOR
A HUNDRED DOLLAR BILL BECAUSE HE
DIDN'T HAVE AN ACCOUNT AT THAT
BANK.
IF BANKS CAN MAKE CHANGE.
I'M I'M I'M I'M I'M REALLY LOS
THERE BECAUSE THAT'S WHAT A BANK.
ALWAYS DID AS A KID WHEN I WAS
GROWING UP AND IT AND IF IT WAS
YOUR COMMUNITY BANK.
YOU WITH EXPECT THAT SO I THINK
THERE IS A NEED FOR THIS CONCEPT
AND I'M WILLING -- TO SUPPORTED
AS IT MOVES FORWARD -- YES IT'S
A LOT OF WORK IN THIS DOUBLES IN
THE DETAILS BUT I I THINK -- IT
IS THE TIME HAS COME SO ON THAT
NOTE -- ASSN IMAGE WOULD YOU
LIKE TO WE HAVE A MOTION BY
SENATOR PORTANTINO WOULD YOU
LIKE TO CLOSE.
I JUST WANT TO THANK THE
COMMITTEE FOR THEIR
CONSIDERATION I KNOW THIS IS A
DIFFICULT MEATY TOPIC APPRECIATE
IT I WANT TO THANK CENTER QUITE
SO FOR YOUR YOU LEAVE YOUR YEARS
OF LEADERSHIP I HAVE TO ADMIT --
WHEN I LEARNED ABOUT YOUR
ATTEMPTS EIGHT YEARS AGO I
ALMOST THOUGHT OF NOT DOING THIS
BECAUSE I KNEW HOW HARD IT WAS
BUT?
IT'S IMPORTANT TO DO OUR THANK
THE CHAIRMAN YOU AND YOUR STAFF
FOR YOUR DEEP ENGAGEMENT ON THIS
AS WELL -- AND TO JUST ECHO WHAT
YOU JUST SAID.
IF WE HAVE SET UP THE RULES TO
MAKE IT.
ALMOST IMPOSSIBLE TO CHARTER
BANK WHY NOT ATTEMPTED I DO
BELIEVE THAT IF A LOCAL
JURISDICTION IS SUCCESSFUL AT
JUMPING OVER ALL THOSE HURDLES
IN MEETING THOSE CHALLENGES.
THE PUBLIC BANK THAT IS CHARTER
WILL BE SUCCESSFUL AND THAT IS
OUR HOPE BUT THE SECOND THING I
WILL SAY IS.
MY HOPE IS THIS IS A DISCUSSION
THAT WILL NOT SHOULD THE
INDUSTRY TO SERVE THE PUBLIC
BETTER AT THE LEAST WE ARE
HOPEFUL OF THAT -- WE HAVEN'T
SEEN YET MUCH EVIDENCE THAT IT
HAS BUT AT LEAST THE
CONVERSATION IS IS IS IS
ALLOWING US TO HAVE AN HONEST.
DIALOGUE ABOUT WHAT IT'S GOING
TO TAKE FOR BANKS AND AN
INDUSTRY TO SERVE THE PUBLIC AND
WITH THAT I RESPECTFULLY ASK
YOUR SUPPORT.
THANK YOU WOULD YOU LIKE TO
CLOSE SYSTEMS ON I WOULD JUST
ECHO IN RESPECTFULLY ASK -- FOR
MISTER CHAIR AS I BILL AND THE
REST OF THE COMMITTEE MEMBER
SIGNATURE THANK YOU.
ALL WE HAVE A DO PASS AS AMENDED
TO GOVERNMENT FINANCE ARE.
IF YOU DON'T MIND I WANT TO
STATE THOSE AMENDMENTS REAL
QUICK SO WE'RE CLEAR ON WHAT
THEY ARE.
IT'S MY UNDERSTANDING THE TO BE
ACCEPTING THE RECOMMENDED
AMENDMENTS ON PAGE.
TEN OF THE COMMITTEES ANALYSIS
TODAY OTHER THAN THE AMENDMENT
REQUIRING VOTER APPROVAL BEFORE
LOCAL AGENCY CAN SUBMIT AN
APPLICATION FOR PUBLIC BANKING
CHARTER.
INSTEAD WE HAVE AGREED THE CHILL
COMMIT TO ADDING A VOTE
REQUIREMENT TO YOUR BILL AND
SENATE.
GOVERNANCE AND FINANCE COMMITTEE
THAT'S INTENDED TO ALLOW
GOVERNMENT TO FINANCE TO DRAFT
THOUGH -- VOTER REQUIREMENT
LANGUAGE OUT THE BOOK TO THE
JOINT POWERS AUTHORITIES IN
CHARTER CITIES TO SUBJECTS THAT
THEY'RE BETTER SUITED TO DEAL
WITH THAN THIS COMMITTEE HERE.
IF THAT'S YOUR UNDERSTANDING --
THANK YOU AND EXCEPT IN THOSE --
AMENDMENTS WE HAVE A MOTION --
MADAM SECRETARY PLEASE CALL.
ZERO MOTIONS DO PASSES AMENDED
TO GOVERNANCE AND FINANCE
SENATOR BRADFORD ART
[inaudible]
SENATOR CHIANG.
SENATOR CAFIERO SENATOR DOLLY
[inaudible]
SENATOR ALSO [inaudible]
SENATOR QUESTION [inaudible]
SENATOR PORTANTINO.
THANK YOU CENTER STRESS FOR VOTE --
WE'RE GONNA OPEN THE ROLE ON I
DON'T WANT TO ALLOW THE ABSENT
MEMBERS TO ADD ON A. B. THREE
SEVEN SIX MADAM SECRETARY PLEASE
CALL THE ABSENT MEMBERS.
THE MOTION IS DO PASS AS AMENDED
TO SENATE JUDICIARY CHAIR VOTING
ON A SENATOR HUESO.
THAT MEASURE US FOR VOTE THAT
MEASURE IS OUT AS WELL.
LADIES AND GENTLEMEN MEMBERS OF
THE COMMITTEE THAT CONCLUDES OUR
BUSINESS FOR THE BANKING AND
FINANCIAL INSTITUTIONS FOR THE
DAY.
THIS COMMITTEE STANDS ADJOURNED