OKAY. THE COMMITTEES WILL COME
TO ORDER. GOOD MORNING IN
RESPONSE TO THE CALL BUT
NINETEEN EMERGENCY AND TO
PROTECT THE PUBLIC LEGISLATORS
AND EMPLOYEES WE MUST LIMIT NON
ESSENTIAL GATHERINGS AND IT
HERE TO SOCIAL DISTANCING AND
FACE COVERING GUIDELINES IN
COMPLIANCE WITH THOSE ORDERS
THE SENATE HAS MADE NECESSARY
ADJUSTMENTS TO NORMAL
PRACTICES. IN ORDER TO ENSURE
THAT THE PUBLIC CONTINUES TO
HAVE ACCESS TO THE LEGISLATIVE
PROCESS. WE ARE HOLDING OUR
COMMITTEE HEARINGS HERE IN THE
CAPITAL WITH SOME MEMBERS ABLE
TO PARTICIPATE REMOTELY. FOR
MEMBERS PARTICIPATING REMOTELY
WOULD YOU PLEASE IDENTIFY
YOURSELF. SENATOR MONIQUE WE
KNOWN. COULD WE SEE. CENTER
LIMóN. OKAY NOW PLEASE AT THE-
IDENTITY YOURSELF. OKAY GREAT
THANK YOU. THOSE PROVIDING
TESTIMONY BEFORE THE COMMITTEE
TODAY ARE PARTICIPATING
REMOTELY FOR OUR REMOTE
PARTICIPANTS PLEASE MUTE YOUR
PHONES OR COMPUTERS THIS WILL
GREATLY AID IN ELIMINATING ANY
ACOUSTIC FEEDBACK I ASK THAT
EVERY TIME YOU WISH TO BE
RECOGNIZE THAT YOU USE THAT
RAISE YOUR HAND FEATURE IN THE
PROGRAM EACH TIME YOU ARE
RECOGNIZED TO SPEAK A POP UP
WINDOW WILL APPEAR ASKING IF
YOU WOULD LIKE TO UN MUTE.
PLEASE SELECT ON MUTE. BEFORE
YOU BEGIN SPEAKING OUR IT
PERSONNEL WILL PUT YOU BACK ON
MUTE WHEN YOU ARE DONE. ONCE
RECOGNIZED TO SPEAK PLEASE MAKE
SURE YOU CAN BE SEEN ON THE
SCREEN STATE YOUR NAME AND THEN
YOU ARE READY TO ADDRESS THE
COMMITTEE. TO ALLOW THE PUBLIC
ACCESS WE HAVE ADMITTED MEMBERS
OF THE PUBLIC TO TWO HEARING
ROOMS. TO THE EXTENT THAT
SOCIAL DISTANCING REQUIREMENTS
ALLOW I WILL BE USING A
TELECONFERENCE ORVIS FOR THOSE
INDIVIDUALS WHO WISH TO TESTIFY
TODAY. FOR ALL INDIVIDUAL WHO
WISHING TO PROVIDE PUBLIC
COMMENT. THE PARTICIPANT TOLL
FREE NUMBER AND ACCESS CODE IS
POSTED ON OUR COMMITTEE
WEBSITE. IT WILL BE DISPLAYED
ON THE SCREEN AND I WILL
ANNOUNCE IT NOW. TODAY'S
PARTICIPANT NUMBER IS.
844-291-6364 AND THE ACCESS
CODE IS. ONE FOUR ONE SEVEN SIX
OH NINE. FOR DETAILED
INSTRUCTIONS ON HOW THE
TELECONFERENCES DIM WORKS
PLEASE REFER TO THE SENATE AND
OR COMMITTEE WEBSITE. PLEASE
NOTE THAT IN ORDER FOR US TO
HEAR YOU CLEARLY AND TO AVOID
ACOUSTIC FEEDBACK. YOU MUST
MUTE THE DEVICE YOU'RE WATCHING
THE HEARING ON PRIOR TO GIVING
TESTIMONY OVER THE PHONE. IT IS
IMPORTANT THAT WE HEAR FROM YOU
AND WE THANK YOU FOR YOUR
PATIENCE. I WILL MAINTAIN
DECORUM DURING THE HEARING AS
IS CUSTOMARY. AND ANY
INDIVIDUAL WHOSE DESTRUCTIVE
MAY BE REMOVED FROM THE REMOTE
MEETINGS SERVICE OR HAVE THEIR
CONNECTIONS MUTED. WELL EVERY
EFFORT HAS BEEN MADE TO
STREAMLINE THE HEARING PROCESS
AND CONDUCT OUR HEARINGS IN AS
CLOSE TO THE SAME MANNER AS IS
CUSTOMARY. THERE MAY BE SOME
LAG TIMES FOR PARTICIPANTS.
JUSTIN TO THE NEW USE OF ONLINE
TOOLS OR TECHNOLOGIES. PLEASE
BE RESPECTFUL AND PATIENT SO
ALL INTERESTED PARTIES CAN BE
HEARD. WE WILL NOW BEGIN THE
HEARING. THIS IS A JOINT
HEARING BETWEEN THE SENATE
BUDGET SUB COMMITTEE FIVE.
SENATE STANDING COMMITTEE ON
LABOR AND PUBLIC EMPLOYMENT AND
THE SENATE BANKING AND
FINANCIAL INSTITUTIONS
COMMITTEE. THIS HEARING WILL
COVER THE STATE AUDITOR'S
RECENT AUDITS ON THE EMPLOYMENT
DEVELOPMENT DEPARTMENT'S.
MANAGEMENT OF THE UNEMPLOYMENT
INSURANCE SYSTEM DURING THE
CALL BUT NINETEEN PANDEMIC. AS
A RESULT OF THE COLBERT
NINETEEN PANDEMIC AND THE STATE
GOVERNMENT'S DECISIONS THE
UNEMPLOYMENT RATE INCREASED
FROM FOUR POINT 3% IN FEBRUARY
TWENTY TWENTY. TO SIXTEEN POINT
2% IN APRIL. BY NOVEMBER EDT
PROCESS MORE THAN SEVENTEEN
MILLION CLAIMS AND PAID OUT
MORE THAN ONE HUNDRED ELEVEN
BILLION DOLLARS IN YOU I
BENEFITS. THIS COMPARES TO JUST
THREE POINT EIGHT MILLION
CLAIMS DURING THE GREAT
RECESSION IN TWO THOUSAND NINE
AND TWO THOUSAND TEN. LET ME
REPEAT. DURING THE TWO THOUSAND
NINE TWO THOUSAND TEN GREAT
RECESSION THREE POINT EIGHT
MILLION CLAIMS WERE PROCESSED.
BETWEEN APRIL AND NOVEMBER OF
TWENTY TWENTY EDT PRCESS MORE
THAN SEVENTEEN MILLION CLAIMS
AND PAID OUT MORE THAN A
HUNDRED ELEVEN BILLION DOLLARS
IN YOU I BENEFITS. IN ADDITION
THE PANDEMIC HAS HAD A
DISPROPORTIONATE IMPACT ON LOW
WAGE WORKERS WOMEN AND LATINOS
WOULD THAT WERE HIT HARDEST BY
THE PANDEMIC WITH LATINOS
ACCOUNTING 450% OF JOB LOSSES.
ADDITIONALLY ALMOST ALL JOB
LOSSES HAVE BEEN AMONG WORKERS
WITH LESS THAN A BACHELOR'S
DEGREE. INDUSTRIES LIKE TOURISM
TRAVEL FOOD SERVICE AND
COMMENDATIONS SO I 22404%
DECLINE IN EMPLOYMENT. MY
DISTRICT OFFICE AS I IMAGINE
ALL OF MY COLLEAGUES HAS
RECEIVED IN TOTAL THOUSANDS OF
CALLS SINCE THE PANDEMIC BROKE
OUT FROM CONSTITUENTS IN NEED
OF ASSISTANCE WITH THEIR
UNEMPLOYMENT INSURANCE CLAIMS.
MANY STRUGGLE TO GET THROUGH
THE ED'S PHONE LINES OR WAIT
HOURS OR DAYS FOR ID DOT ME TO
PROCESS CAUSING CONSTITUENTS TO
TIME OUT OF THE SYSTEM OR EVEN
BE DISQUALIFIED. THIS LEAVES
MANY OF MY CONSTITUENTS STUCK
WITH PENDING CLAIMS OR BEING
DISQUALIFIED FROM BENEFITS THE
STATE MUST ACT FASTER TO ENSURE
THAT WE DO OUR PART IN GETTING
RELIEF TO WORKERS MOST IN NEED.
ON THE OTHER HAND I DON'T
BELIEVE WE SHOULD BE HERE TO
SIMPLY LAY BLAME WE NEED TO
KNOW THE SOLUTIONS AND WHAT
RESOURCES IT WILL TAKE TO FIX
THE PROBLEMS. IN TODAY'S
HEARING WE WILL HEAR TESTIMONY
FROM THE STATE AUDITOR'S OFFICE
THE ADD AND BANK OF AMERICA
REGARDING THE AUDITS GOT ITS
RECOMMENDATIONS AND FUTURE
PLANS TO ADDRESS THE FINDINGS
REYES BY THE STATE AUDITOR. TO
HELP ENSURE THE SYSTEM IS
BETTER PREPARED TO SERVE
CALIFORNIANS WE WILL HOLD OUR
QUESTIONS UNTIL THE THREE
PANELS HAVE COMPLETED THEIR
TESTIMONY. BEFORE WE BEGIN
SENATORS CORTEZ C. AND PROBABLY
IT'LL DO YOU HAVE ANY OPENING
COMMENTS WITH. THIS PUTS US
CENTER W. THANK YOU MADAM
CHAIR. THIS PANDEMIC HAS
HIGHLIGHTED THE CRITICAL ROLE
OF EFFICIENT AND NIMBLE LIVERY
OF SUPPORT SYSTEMS IN TIMES OF
NEED AND MY DISTRICT THOUSANDS
OF CONSTITUENTS ARE SUFFERING
BY THE INEFFICIENCY AND THE
DELAY IN RECEIVING THEIR
UNEMPLOYMENT BENEFITS FAMILIES
ARE AT A BREAKING POINT. WE
CANNOT CAN YOU CONTINUE TO FAIL
CALIFORNIANS AND MUST DO ALL WE
CAN TO MAKE SURE THAT WE SEE
THE IMPROVEMENTS NOW AND
PREVENT ANOTHER SITUATION LIKE
THIS FROM HAPPENING HAPPENING
IN THE FUTURE I LOOK FORWARD TO
HEARING AND THAT THE RECENT EDT
AUDIT FINDINGS AND WORKING
TOWARDS IMMEDIATE AND LONG TERM
SOLUTIONS. AS ACTING CHAIR OF
THE SENATE BANKING AND
FINANCIAL INSTITUTIONS
COMMITTEE FOR THIS HEARING I
ALSO LOOK FORWARD TO THE
INFORMATION BANK OF AMERICA
WILL PROVIDE AS OUR PARTNER
SINCE THOUSANDS OF ACCOUNTS
WERE FROZEN IN LATE TWENTY
TWENTY PEOPLE'S FRUSTRATION HAS
BEEN BUILDING WITH A LACK OF
TRANSPARENCY AND THE SUPPORT TO
RESOLVE THE CASE THE ACCOUNT
ISSUES I HOPE THIS HEARING WILL
ALSO PROVIDE CLARITY ON HOW WE
CAN IMPROVE THE STATE'S
COLLABORATION WITH FINANCIAL
INSTITUTIONS. TO ENSURE THAT
ALL PARTS OF OUR DELIVERY
SYSTEM ARE WORKING AS
EFFICIENTLY AS POSSIBLE FOR ALL
CALIFORNIANS THANK YOU MADAM
CHAIR THANK YOU SENATOR W. TO
CENTER COURT BECAUSE HE- THANK
YOU MELCHER. THE FIRST AND
FOREMOST THANK YOU. FOR YOUR-
EFFORTS IN PARTNERING WITH THE
OTHER TWO COMMITTEES TO MAKE
SURE THAT THIS HEARING CAME
TOGETHER TODAY- COMMITTEES ARE
DIFFICULT TIMES AND FOR THE
SECOND TIME IN TEN YEARS IF THE
EDT IS BEEN ASKED TO STEP IN
THE MIDDLE OF WHAT WOULD HAVE
BEEN EXPECTEDTO BE A ONCE IN A
LIFETIME NOT TWICE IN EVERY TEN
YEARS OCCURRENCE- THAT SAID- WE
HAVE A LOT OF WORK TO DO HERE
TODAY AND GOING FORWARD- IN
MANY CASES. IN THE FACE OF
NEARLY IMPOSSIBLE
CIRCUMSTANCES. I THINK EDT HAS
DONE WHAT FRANKLIN DELANO
ROOSEVELT- EXPECTED TO DO. WELL
WHEN HE STOOD UP THIS PROGRAM
IN NINETEEN THIRTY FIVE AND
THAT'S TO PROVIDE- BENEFITS
SAFETY NET BENEFITS. BUT TO THE
PEOPLE OF THE STATE OF
CALIFORNIA BEYOND. REMISS IF I
DID NOT KNOW. THAT THAT'S NOT
BEEN THE CASE FOR ALL
CALIFORNIA SAYS WAS JUST.
OUTLINED BY THE OTHER TWO
CHAIRS- WELL I SALUTE THE
EMPLOYEES IN MANAGEMENT. WHO
HAVE- MADE MUCH. OF A GOOD WORK
HAPPEN IN TERMS OF ANY BENEFITS
OUT AS WAS JUST DESCRIBED- THE
FACT OF THE MATTER IS THAT
BENEFITS ME UNFAIRLY DILUTE
DELAYED OR DENIED. IS
UNACCEPTABLE IN THE PEOPLE OF
CALIFORNIA ARE CURRENTLY ASKING
MORE. OF US THAN THIS. I'D I
WANT TO SHOW THAT THE- AS A BOY
I HEARD MY GRANDFATHER WAS A
GREAT MENTOR OF MINE APPROACH
LOCAL ELECTED OFFICIAL ON
BEHALF. OF A FRIEND OF HIS WHO
IS EXPERIENCING GREAT ECONOMIC
HARDSHIP IN THE US ELECTED
OFFICIALS IF HE WOULD TRY TO
HELP HIS FRIEND. IN THE
RESPONSE BY THE ELECTED
OFFICIAL WAS I'LL TRY TO HELP
HIM A LITTLE BIT. MY
GRANDFATHER'S RESPONSE WAS IF
YOU'RE GOING TO HELP SOMEONE.
YOU DON'T HELP THEM A LITTLE
BIT. HE HELPED THEM ALL THE WAY.
AND I THINK THAT'S WHAT WE'RE
FACING TODAY AND THAT'S WHAT
OUR CONSTITUENTS FRUSTRATION IS
AMONG OTHERS. WE'LL HEAR ABOUT
FRAUD TODAY BUT WILL ALSO HEAR
ABOUT THE LADIES. OF THE LACK
OF ABILITY AND CAPACITY TO
HANDLE INCOMING CALLS. AGAIN
WHICH WAS JUST OUTLINED BY THE
OTHER TWO CHAIRS. I DID A
LITTLE BIT OF SIMPLE MATH THEIR
HUNDRED FIFTY OPEN CASES BEING
HANDLED BY MY STAFF CURRENTLY.
IF THAT WERE THE CASE ON
AVERAGE. OF FOR THE MEMBERS OF
THE LEGISLATURE IN THE STATE OF
CALIFORNIA THAT MEANS THERE'S
EIGHTEEN THOUSAND CASES. THAT
ARE BEING WORKED ON AND
SUPPORTED BY FOLKS IN LOCAL
GOVERNMENT OFFICES- ORDINARILY
WOULD NOT. HANDLE THAT KIND OF
WORKLOAD. AND DO NOT HAVE THE
EXPERTISE TO DO SO THAT DOESN'T
EVEN COUNT THE MAYORS AND
COUNCIL MEMBERS A COUNTY
SUPERVISORS ANOTHER ELECTED
OFFICIAL STAFF WHO WERE. TRYING
TO STEP UP AND HELP. SO THIS IS
A BIG BIG ISSUE ALL CONTINUE TO
WORK ON IT I PLEDGE TO CONTINUE
TO WORK. WITH THE OTHER TWO
COMMITTEES- AND AS CHAIR OF THE
LABOR COMMITTEE TO FOLLOW UP
WITH ADDITIONAL HEARINGS AS
NECESSARY TO IMPROVE
COMMUNICATIONS BETWEEN. EDT THE
LEGISLATURE IN THE PUBLIC. BUT
I THINK ULTIMATELY THE QUESTION
FOR US FROM OUR CONSTITUENTS
INCLUDING EMPLOYERS. IS THOSE
OF YOU WHO ARE IN THE PUBLIC
SECTOR CONTINUE TO GET YOUR
PAYCHECKS. SO THAT WE CAN GET
OURS. AND THAT'S WHAT THE
FRUSTRATION IS. THEN THAT I
THINK IS A PROBLEM THAT WE NEED
TO SOLVE. THANK YOU VERY MUCH
MADAM CHAIR LOOK FOR THE REST
OF THE HEARING. THANK YOU
CENTER COURTESY. I WOULD ALSO
LIKE TO ACKNOWLEDGE SENATOR
NIELSEN VICE CHAIR OF THE
SENATE BUDGET FISCAL REVIEW
COMMITTEE. SENATOR NELSON DO
YOU HAVE ANY OPENING REMARKS.
THANK YOU MADAM CHAIR AND
FELLOW TERRORISTS WHO ARE
FACILITATING THIS EXTRAORDINARY
IMPORTANT. CONVENING I HAVE
SERVED IN THE LEGISLATURE OVER
A LONG TIME AND I'VE DEALT WITH
MANY DYSFUNCTIONAL AGENCIES.
BUT NEVER ONE DYSFUNCTIONAL TO
THE DEGREE OF THE EDT. NOW THE
PANDEMIC PROBABLY IS MORE
DISASTROUS BECAUSE IT'S LIFE OR
DEATH. BUT THIS DISASTER IS
VERY CAN TO THAT BECAUSE OF THE
LIVES IT IS DISRUPTED. ALL
CALLS TO THE OFFICE ARE SIMILAR
TO YOURS. AND THE MOST SAD PART
ABOUT IT IS PEOPLE BREAKING
DOWN WEEPING ONE ONE OF MY
STAFF ANSWERED THE PHONE. WE
PAY BECAUSE THEY FINALLY GOT A
HUMAN VOICE TO TALK TO. AND THE
FRUSTRATION OF LOSING THEIR
APARTMENT LOSING THEIR HOME NOT
BEING ABLE TO PAY THEIR BILLS
BECAUSE OF A DYSFUNCTIONAL
AGENCY WHOSEEMS TO AND
PROVIDING REMEDIES. ONLY
EXACERBATED THE DISASTER. THIS
CANNOT BE A HEARING THAT
RESULTS IN JUST REPORTS TO THE
LEGISLATURE OF THE PROGRESS. I
DON'T WANT ANY REPORTS FROM THE
AGENCY- MEANINGLESS WE NEED
STATUTORY STRUCTURAL CHANGES TO
THE CONDUCT OF THE AGENCY THAT
MAYBE EVEN THE APPOINTMENT OF
AN INSPECTOR GENERAL. IT'S
CLEAR THEY CANNOT WATCH OVER
THEMSELVES. THIS IS PROBABLY
ONE OF THE MOST SIGNIFICANT
CHANGES THAT WE WILL EVER
BROUGHT IN GOVERNMENT DURING
OUR TENURE BECAUSE IT AFFECTS
SO MANY OF OUR CONSTITUENTS.
THANK YOU SENATOR NELSON WE
HAVE TWO HANDS ON SO THAT THAT
WE CAN GET RIGHT INTO THE- THE
PANELS SENATOR MAN. THANK YOU
CENTER AS I JUST WANTED TO MAKE
A BRIEF STATEMENT- EDT FOR MY
CONSTITUENTS LIKE OTHERS THIS
IS PROBABLY ONE OF THE MOST
IMPORTANT ISSUES THEY'RE
FACING. THE FAILURES HERE ARE
APPALLING AND WE MUST ENSURE
THAT THERE ARE STRUCTURAL
REFORMS TO THIS TYPE OF FEAR
YOU'RE NEVER HAPPENS AGAIN. BUT
I WOULDN'T EMPHASIZE THE
IMPORTANCE OF FIXING THIS RIGHT
NOW. WE NEED ACCOUNTABILITY WE
NEED STRUCTURAL REFORMS BUT
THIS IS AN URGENT AND IMMEDIATE
ISSUE FOR CALIFORNIANS
UNEMPLOYED WORKERS. MY OFFICE
LIKE EVERY OTHER OFFICE WE'RE
HEARING FROM IS GETTING PHONE
CALLS FROM PEOPLE WHO ARE AT
THEIR WITS SPANNED ABOUT
GETTING THEIR EDT PAYMENTS.
THESE ARE HARD WORKING
CALIFORNIANS WHO ARE ALREADY
STRUGGLING WITH THE CHALLENGES
OF BEING UNEMPLOYED DURING THIS
PANDEMIC BUT NOW BECAUSE OF THE
FAILURES OF EDT AND BANK OF
AMERICA. THEY'RE HAVING TO DEAL
WITH A WHOLE NEW SET OF
DIFFICULT CHALLENGES. THEIR
BANK ACCOUNTS ARE FROZEN THEY
CAN ACCESS THEIR FUNDS AND AS A
RESULT THEY'RE HAVING
DIFFICULTY PUTTING FOOD ON THE
TABLE FOR MAKING THE RENTAL
PAYMENTS. WE NEED TO FIX THIS
NOW WE NEED TO MAKE SURE THAT
WE ARE MAKING THESE FOLKS HOLE.
AND I WNT TO EMPHASIZE THAT
THE DAMAGE CAUSED BY THESE
FAILURES ALSO NEEDS TO BE
ADDRESSED INCLUDING OVERDRAFT
FEES LATE CHARGES FOR MISSED
PAYMENTS AND NEGATIVE CREDIT
SCORE IMPLICATIONS OF WHAT'S
HAPPENING RIGHT NOW. I LOOK
FORWARD TO TODAY'S TESTIMONY
BUT AGAIN ONE EMPHASIZED WE
CAN'T JUST BE TALKING ABOUT
STRUCTURAL REFORMS WE HAVE TO
FIX IT AS SOON AS POSSIBLE NOW.
THANKS SENATOR JOE BOWEN. GOOD
MORNING MADAM CHAIR NUMBERS
THANK YOU FOR THE OPPORTUNITY
TO SPEAK IT'S BEEN NEARLY A
YEAR SINCE THE GOVERNOR BEGAN
SHUTTERING BUSINESSES AND
MASSIVE NUMBER OF CALIFORNIANS
LOST THEIR JOBS OVER THIS TIME
WE HAVE HEARD HORROR STORIES
FROM OUR CONSTITUENTS WHO HAVE
NOT ONLY FACE THE PAIN OF
LOSING THEIR JOBS BUT THE ADDED
INSULT OF NOT BEING ABLE TO
ACCESS THEIR YOU AYE BENEFITS
AND OR RECEIVE THE ASSISTANCE
THEY NEED. PARTY MANY
CALIFORNIANS ARE SUFFERING AND
STRUGGLING TO PUT FOOD ON THE
TABLE AND PAY THE RENT. THEY
HAVE BEEN ASKED TO STAY HOME
THEIR EMPLOYEES TO SHUT DOWN
ANOTHER STATE IS FAILING TO
HELP THEM WHEN THEY NEED US THE
MOST. THERE HAS BEEN USED.
THERE HAS BEEN NEWS REPORTS
AFTER NEWS REPORTS ABOUT NEW
PROBLEMS AT EDT. RECENT
ARTICLES REPORT MASSIVE AMOUNTS
OF FRAUD THAT COULD TOTAL
THIRTY BILLION DOLLARS. THIS IS
A CRISIS. THE LEGISLATURE HAS
WRITTEN MULTIPLE LETTERS TO
GOVERNOR NEWSOM AND VARIOUS
OFFICIALS WITHIN HIS
ADMINISTRATION. TO MEANINGFULLY
FIX THE PROBLEMS AT EDT. BUT
REAL ACTION HAS NOT YET
OCCURRED. AS A RESULT
CALIFORNIA'S EMPLOYMENT
DEVELOPMENT DEPARTMENT
CONTINUES TO FAIL AT ITS
PRIMARY MISSION. WE NEED TO
ENSURE THE TIMELY DELIVERY OF
YOU I BENEFITS WITH EXCELLENT
CUSTOMER SERVICE. AND MINIMAL
FRAUD AND WE NEED TO DO IT NOW.
THIS IS WHY I ALONG WITH MY
REPUBLICAN COLLEAGUES LET A BI
PARTISAN CALL TO REQUEST AT
THIS HEARING BE CONVENED AS
SWIFTLY AS POSSIBLE IN ORDER TO
ENSURE THAT THE RECOMMENDATIONS
OF THE STATE AUDIT. ARE
IMPLEMENTED AS EXPEDITIOUSLY AS
POSSIBLE. THANK YOU TO THE
LEADERS OF THE LEGISLATURE FOR
RESPONDING TO OUR CALL. THANK
YOU ALSO TO THE STATE AUDITOR
AND HER TEAM FOR THE GOOD WORK
ON THESE REPORTS. THEY HAVE
WORKED DILIGENTLY TO SHED THE
LIGHT ON THE ISSUES AND OFFER
REAL SOLUTIONS. IN THIS HEARING
I ASK ALL OF OUR PRESENTERS TO
GIVE AN HONEST ACCOUNT OF THE
ISSUES AT THE E. D. AND THE
RECOMMENDATIONS TO SOLVE THEM.
I'M SPECIFICALLY INTERESTED IN
KNOWING WHY THE AUDITORS
PREVIOUS RECOMMENDATIONS HAVE
NOT YET BEEN ADOPTED. WE MUST
MAKE SURE THAT THESE CHANGES
ARE IMPLEMENTED NOW TO TAKE
CARE OF CALIFORNIANS AND TO
PREPARE FOR THE FUTURE. OUR
CONSTITUENTS CANNOT WAIT ANY
LONGER THANK YOU. THANK YOU.
NOW WE WILL- BEGIN WITH THE
PRESENTATION WITH THE STATE
AUDITOR. THE STATE AUDITOR
PLEASE PRESENT. MORNING MEMBERS
THIS IS THE LINE HOW ALL
CALIFORNIA STATE AUDITOR. THE
RISE- CABALLERO AND CORTESE AND
ALL MEMBERS OF THE THREE
RESPECTIVE COMMITTEES THANK YOU
SO MUCH FOR INVITING MYSELF AND
MY STAFF TO PRESENT THE RESULTS
OF THE TWO ARTISTS WE ISSUED ON
THE LAST WEEK OF JANUARY- WE
DID SEND- THE COMMITTEES THREE
DIFFERENT DOCUMENTS. ARE THE
FIRST DOCUMENT IS A SUMMARY AND
SOME GRAPHICS FROM OUR FIRST
THOUGHT IT THAT WE ISSUED ABOUT
CLAIMS PROCESSING AND FOCUSING
ON THE CALL CENTER AT CENTER
THE SECOND DOCUMENT IS ABOUT
THE SECOND REPORT WHICH REALLY
DID FOCUS ON- FRAUD DETECTION
AND PREVENTION EFFORTS- BY E.
D. D. THE THIRD DOCUMENT IS. A
DOCUMENT WHERE WE BROUGHT ALL
OF THE RECOMMENDATIONS FROM THE
TWO REPORTS TOGETHER INTO ONE
DOCUMENT SO IT WOULD BE EASIER
NOT ONLY FOR THE LEGISLATURE
BUT FOR OTHERS TO UNDERSTAND
WHAT RECOMMENDATIONS WE MADE TO
THE LEGISLATURE AND WHAT
RECOMMENDATIONS WE MAY D. ET
DEET BY SUBJECT AREA BY CLAIMS
PROCESSING BY CALL CENTER AT
SENTARA. AND MANAGE LAYING
THOSE RECOMMENDATIONS OUT
BASICALLY CHRONOLOGICALLY
BECAUSE IN MANY OF OUR
RECOMMENDATIONS NOW WE PUT A
SPECIFIC TIMELINE- OR GIVE A
SPECIFIC MILESTONE THAT WE'RE
EXPECTING THE DEPARTMENT TO
IMPLEMENT THAT RESPECTIVE
RECOMMENDATION SO THERE'S THREE
DOCUMENTS I'M GOING TO BE
SPEAKING JUST FROM THE FIRST
PAGE OF EACH DOCUMENT. THE
FIRST PAGE OF THE DOCUMENT
THREE RELATED TO THE AUDIT
REPORTS ARE ESSENTIALLY
SUMMARIZING THE KEY ISSUES WE
HAD IN EACH OF THOSE TWO AUDITS
AND THEN THE RECOMMENDATIONS
ALL STEP YOU THROUGH THE
LEGISLATIVE RECOMMENDATIONS
MISTER HARRIS IS GOING TO BE
AVAILABLE WHEN WE GET TO THE
BACK Q. NA ALSO YOU PROBABLY
SEE AYE HEATHER KENDRICK ON THE
SCREEN. HEATHERS ARE ASSOCIATE
CHIEF COUNSEL SHE WAS THE
ATTORNEY ASSIGNED TO THIS ON IT
ALSO SHE'S AVAILABLE TO ANSWER
ANY QUESTIONS FROM A LEGAL
PERSPECTIVE IF THERE ARE ANY.
SO WITHOUT MEMBERS ALL START
WITH THE FIRST REPORT THE FIRST
REPORT HAD FOUR KEY ISSUES
FIRST OF ALL EDT NOT BEING
PREPARED FOR A. DOWNTURN NOW
THE PANDEMIC'S SIR IS ON PRESS-
BUT THE FACT THAT YOU DO HAD
BEEN PER. FOR POTENTIAL
RECESSION WE KNOW THAT
RECESSIONS OCCUR EVERY FIVE AND
A HALF TO SIX YEARS. WHEN WE
ISSUED OUR AUDIT REPORT BACK IN
MARCH OF TWENTY ELEVEN WE LOOK
AT THEIR ABILITY TO PROCESS
CLAIMS WE LOOKED AT THEIR CALL
CENTER. THEIR ABILITY TO
RESPOND TO CONSTITUENTS AND AT
THAT TIME IT WAS DEALING WITH A
RECESSION. THAT CALIFORNIA WAS
SUFFERING FROM- SO WE MADE
RECOMMENDATIONS TO EDT FOR
ADDITIONAL TRAINING IMPROVING
THEIR CALL CENTER IMPROVING
THEIR PHONE SYSTEM TO ALLOW. A
CERTAIN AMOUNT MESSAGES FOR
PEOPLE TO BE ABLE TO REACH TO
EDT OR REACH INFORMATION
WITHOUT EVEN HAVING TO TALK TO
AN AGENT. BUT UNFORTUNATELY ET
HADN'T PUT TOGETHER THEY HAD
STARTED WORKING ON A RECESSION
PLAN BUT THEY HAVEN'T COMPLETED
THAT PLAN WHEN THE WHEN THE
PANDEMIC CARE. AND ESSENTIALLY
THEIR DRAFT PLAN WAS WAS. PUT
ON THE SHELF BECAUSE THEY HAVE
TO REALLY DEAL WITH THE SURGE
OF CLAIMS THAT CAME IN. EARLY
TWENTY TWENTY SO THAT WAS ONE
OF OUR FIRST CONCERNS THAT WE
IDENTIFIED IN THIS AUDIT THESE
ARE ISSUES THAT EDT HAS KNOWN
ABOUT HAS KNOWN ABOUT FOR QUITE
A LONG TIME- AND HASN'T MADE
ENOUGH PROGRESS. SO THAT IF
SOME OF THOSE. MESSAGES IN
THEIR THEY'RE- CLAIMS PROCESS
THEIR CALL CENTER HD IMPROVED
AT LEAST IT WOULD HAVE
MITIGATED SOME OF THE
DIFFICULTIES THAT CALIFORNIANS
HAVE BEEN HAVING. IN AND
REACHING OUT TO EDTA GETTING
THEIR CLAIMS. CERTIFIED AND
BEING ABLE TO RECEIVE BENEFITS
SO WE'RE NOT SAYING IT WOULD
HAVE FIXED EVERYTHING THE
PANDEMIC AS WE ALL KNOW IS
UNPRECEDENTED BUT CERTAINLY IF
THEY HAD IMPLEMENTED SOME OF
THE RECOMMENDATIONS AND MADE
SOME IMPROVEMENTS TO THEIR
PROCESSES. THIS IS AND
DIFFICULTIES THAT CALIFORNIANS
HAVE BEEN FACING THIS LAST YEAR
WOULDN'T HAVE BEEN AS SEVERE-
SO THAT WAS THE FIRST KEY AREA
THE SECOND HERE IS REALLY
LOOKING AT THE CALL CENTER NOW
EDT HAS STRUGGLED WITH THEIR
CALL CENTER FOR YEARS. EVEN
PREVIOUS TO THE PANDEMIC IT WAS
VERY DIFFICULT FOR CALIFORNIANS
TO GET THROUGH TO AN AGENT WHO
CAN ASSIST THEM OVER THE PHONE
SOME OF THE RECOMMENDATIONS WE
MADE IN THE PAST- WERE TO TRAIN
THOSE AGENTS MORE QUICKLY BACK
WHEN WE CONDUCTED THE AUDIT TEN
YEARS AGO- IT TOOK ABOUT
THIRTEEN MONTHS TO TRAIN. TRAIN
SOMEONE THEY STREAMLINE
STREAMLINE THAT DOWN TO ABOUT
NINE MONTHS UNDER THE PANDEMIC
BUT THAT'S STILL A LONG PERIOD
OF TIME WHEN YOU HIRE SOMEONE
AND YOU NEED TO TRAIN THEM FOR
NINE MONTHS BEFORE THEY CAN BE
FULLY FUNCTIONAL AND ASSISTING.
OUR CALLERS THAT GET IN. BUT
THE BIG ISSUE WITH THE CALL
CENTERS PEOPLE EVEN BEING ABLE
TO GET THROUGH TO AN INDIVIDUAL
TO SPEAK TO SOMEONE- AND AN EDT
HAD NOT. IMPLEMENTED VARIOUS
BEST PRACTICES THAT ARE OUT
THERE THAT SOME OF WHICH WE
DISCUSSED IN OUR IN OUR
PREVIOUS AUDIT BACK IN MARCH OF
TWENTY ELEVEN WHICH IS. YOU
KNOW TRACK THE TYPES OF
QUESTIONS THAT YOU'RE GETTING
FROM CALLERS ARE YOU CAN USE
THAT INFORMATION FOR TWO
PARTICULAR PURPOSES ONE IS TO
TRAIN YOUR AGENTS ON THAT
PARTICULAR SUBJECT ALSO PERHAPS
PUTTING TOGETHER A FREQUENTLY
ASKED QUESTION- SEGMENT ON YOUR
WEBSITE SO THAT AN INDIVIDUAL
COULD GO TO THE WEBSITE RATHER
THAN HAVING TO TRY TO GET INTO
THE CALL CENTER THEY GET THEIR
QUESTIONS. ANSWERED BY JUST
GOING OUT TO THE WEBSITE ARE
SEEING THE FAQS AND- THIS IS A
QUESTION I HAVE HERE'S THE
ANSWER I DON'T EVEN NEED TO TRY
AND CALL SOMEONE SO THOSE ARE
SOME OF THAT THE BEST PRACTICES
THAT WE SUGGESTED YEARS AGO.
EDT IS STILL NOT DOING THAT
THEY'RE NOT TRACKING. WHY
PEOPLE ARE CALLING THEY'RE NOT
TRACKING AND INDUSTRY INDUSTRY
BEST. WHICH IS FIRST CALL
RESOLUTION HOW OFTEN IS THAT
AGENT'S ABLE TO RESOLVE THE
QUESTION OR THE IN THE ISSUE
THAT PARTICULAR CALLER HAS. SO
THAT PERSON'S CLAIM CAN
CONTINUE TO GET PROCESSED AND
THEN EVENTUALLY THAT PERSON
GETS THEIR BENEFITS. SO THAT'S
AN INDUSTRY STANDARD THAT WE'RE
STILL NOT SEEING EIGHTY D. ARE.
THE THIRD AREA STRUGGLING TO
PROCESS CLAIMS- MANY OF EDIE'S
EARLY IN TWENTY TWENTY- THEY
STILL WERE USING A LOT OF
MANUAL PROCESSES. NEARLY HALF
OF THE CLAIMS THAT CAME IN FOR
THE FIRST. SEVEN OR EIGHT
MONTHS. HAD TO BE PROCESSED
MANUALLY BECAUSE THEY GOT
KICKED OUT THEY THEY WEREN'T
DEALT WITH. WITHIN AUTOMATION
AUTOMATED SYSTEM. SO A LOT OF
PEOPLE HAD TO. HAVE TO WAIT FOR
A LONG TIME TO GET THOSE
INITIAL BENEFIT PAYMENTS. ARE
SO EDT NEEDED TO IMPLEMENT SOME
AUTOMATION NOW ONE THING THEY
DID DO. IN OCTOBER AFTER THE
STRIKE TEAM CAME AND MADE SOME
RECOMMENDATIONS DAY IMPLEMENTED
ID ME. AND THAT WAS A HUGE HELP
AS FAR AS BEING ABLE TO
AUTOMATE A LOT OF THOSE. CLAIMS
AS FAR AS VERIFYING AN
INDIVIDUAL'S IDENTITY AND
MOVING THAT CLAIM FURTHER DOWN.
THE PROCESS OF THOSE BENEFITS
CAN GET PAID RELATIVELY QUICKLY
TO THOSE INDIVIDUALS. THE OTHER
THING THEY DID IS THEY- THEY
SUSPENDED SOME TECHNICAL
THINGS. THAT ARE REQUIRED UNDER
NORMAL UNEMPLOYMENT INSURANCE
NOW AS WE KNOW THE FEDERAL
GOVERNMENT. PASSED LEGISLATION
THAT CARES ACT THAT PROVIDED
DIFFERENT TYPES OF UNEMPLOYMENT
BENEFITS. TO DIFFERENT
CALIFORNIANS INDIVIDUALS WHO
ARE SELF EMPLOYED. WELL ONE OF
THE REQUIREMENTS TYPICALLY
INTRODUCED UNDER TRADITIONAL
YOU WHY IS. EIGHTY NEEDS TO
VERIFY THAT I AS AN EMPLOYEE
HAVE EARN SUFFICIENT WAGES TO
BE ELIGIBLE FOR UNEMPLOYMENT
INSURANCE. THAT ESSENTIALLY
DOESN'T APPLY FOR A SELF
EMPLOYED INDIVIDUAL YOU DON'T
HAVE AN EMPLOYER TO VERIFY.
THAT THAT INDIVIDUAL EARNED
THOSE THOSE WAGES SO THAT THEY
ARE THERE FOR. ELIGIBLE FOR YOU
I BENEFITS SO SOMETHING'S WERE
SUSPENDED NOW. EDT HAS TO
DETERMINE ONCE WE GET PAST.
THIS PANDEMIC. SOME OF THOSE.
THINGS THAT HAVE BEEN WAIVE ARE
GONNA BE ELIMINATED SO THEY
HAVE IDEA ME AND THAT'S
SOMETHING MAYBE THEY SHOULD
CONTINUE TO USE. AND CONTINUE
TO HAVE THAT AS PART OF THEIR
AUTOMATION BUT THERE ARE OTHER
THINGS THAT THEY'RE NOT GOING
TO BE ABLE TO CONTINUE TO DO
LIKE THE EXAMPLE I JUST GAVE.
SO THEY'VE GOT A LOOK AT ALL
THEIR PROCESSES AND SEE ONE OF
THE THINGS THEY NEED TO DO TO
MAKE SURE THEY CAN CAL PROCESS
CLAIMS AS EFFICIENTLY AS
POSSIBLE WE'RE GOING TO GET
PAST THIS PANDEMIC. BUT WE WILL
ENTER A RECESSION IN ANOTHER
FIVE OR SIX YEARS- THAT'S THE
TYPICAL CYCLE THAT WE SAW WHEN
WE LOOK AT RESEARCH SO THERE
ARE THINGS THAT EDT REALLY
NEEDS TO TAKE A HARD LOOK AT IT
TO ME IS A HUGE. IMPROVEMENT
BUT THERE ARE A LOT OF OTHER
THINGS THAT THEY NEED TO
ADDRESS WITH WITH RESPECT TO
CLAIMS PROCESSING. AND THEN THE
LAST ISSUE IN THIS REPAIRS
FIRST REPORT WAS THEY MADE SOME
DECISIONS. WITH RESPECT TO
ELIGIBILITY DETERMINATIONS AND
THE BI WEEKLYCERTIFICATIONS
ALEX PLAN A COUPLE OF THOSE THE
FIRST ELIGIBILITY
DETERMINATIONS THAT DECISION
WAS MADE. THAT LABOR WORKFORCE
AGENCY SECRETARY WE NEED TO GET
THESE THESE PEOPLE PAY QUICKLY
SO LET'S JUST WAVE ELIGIBILITY
DETERMINATIONS. WELL THEY DID
THAT FOR SEVERAL MONTHS ALL THE
WAY THROUGH I THINK SEPTEMBER
OCTOBER- AND THEN THE U. S.
DEPARTMENT OF LABOR BECAME
AWARE OF THAT HAVE CONCERNS.
SAID YOU SHOULDN'T HAVE DONE
THAT YOU NEED TO GO BACK NOW
AND RECERTIFY ALL THOSE
INDIVIDUALS THAT YOU DID NOT ON
THAT ESSENTIALLY YOU WAVE THEY
THEN THE ELIGIBILITY
DETERMINATION. THAT'S ABOUT TWO
POINT FOUR MILLION CLAIMANTS
AND WHEN WE LOOKED AT THE
ISSUES ASSOCIATED ABOUT TWELVE
MILLION ISSUE SO THERE'S-
MILLIONS OF HOURS THAT EDT IS
GOING TO HAVE TO INVEST. IN
WORKING WITH THOSE CLAIMANTS
CAN NOW VERIFY THEIR
ELIGIBILITY. AND IN SOME CASES
SOME OF THOSE INDIVIDUALS MAY
DEEP BE DEEMED AN ELIGIBLE AND
BE NOTIFIED THAT THEY HAVE TO
PAY THOSE BENEFITS BACK THAT
THEY RECEIVED. SO THAT WAS. THE
ISSUE RELATED TO SUSPENDING
ELIGIBLE THE SECOND ISSUE- THAT
I TALK ABOUT WAS THE SURF.
UNDER TRADITIONAL UNEMPLOYMENT
INSURANCE IF I'M UNEMPLOYED
EVERY TWO WEEKS I HAVE TO.
INFORM ET I'VE BEEN TRYING TO
FIND A JOB I HAVEN'T BEEN ABLE
TO FIND A JOB- AND THEN EAT
OKAY YOU CONTINUE T BE
ELIGIBLE FOR BENEFITS. EDT ALSO
SUSPENDED THAT REQUIREMENT
SAYING YOU DON'T NEED TO SEND
IN THOSE BI WEEKLY.
CERTIFICATIONS THAT YOU ARE
CONTINUING TO SEEK WORK- AGAIN
THIS IS ANOTHER ONE POINT SEVEN
MILLION CLAIMANTS. ARE TO THE
TUNE OF ABOUT FIVE POINT FIVE
BILLION DOLLARS THAT WAS PAID
OUT WE WEREN'T ABLE TO QUANTIFY
THE PREVIOUS EXAMPLE I GAVE
YOU. BUT AGAIN THIS IS A
SITUATION WHERE SOME OF THESE
INDIVIDUALS AND WE HAD AN
EXAMPLE THE REPORT. MAY HAVE
GOT BEEN ABLE TO GET A LITTLE
BIT OF WORK AND WORKED A
LITTLE. SOME PART TIME. EARNED
SOME INCOME AND THEREFORE
WEREN'T FULLY ELIGIBLE FOR ALL
OF THE BENEFITS THAT THEY WERE
CONTINUING TO RECEIVE FROM E.
D. NOW THEY MAY BE NOTIFIED BY
A ET DE. WELL YOU'RE GONNA HAVE
TO PAY SOME OF THAT MONEY BACK
SO THAT'S A SIGNIFICANT
HARDSHIP. FOR CALIFORNIANS WHO.
RIGHT TO DO THE RIGHT THING
EXAMPLE WE HAVE IN THE REPORT
AS AN INDIVIDUAL IS EMPLOYEE
GETS PART TIME EMPLOYMENT. EARN
SOME INCOME REPORTED TO EDT BUT
BECAUSE HE HAD SUSPENDED THOSE
THOSE CERTIFICATIONS THEY
DIDN'T LOOK AT THAT
INFORMATION. SO THE CLAIMANT
DID EVERYTHING RIGHT THIS IS A
HYPOTHETICAL WE USE IN THE
REPORT BUT CERTAINLY THERE ARE
I'M SURE CALIFORNIANS OUT THERE
WHO ARE IN THIS SITUATION. IN
THOSE INDIVIDUALS NOW ARE
HAVING TO WORK WITH THE D. D.
YOU TRY TO PROVIDE THOSE BI
WEEKLY THAT CERTIFICATIONS AND
IN SOME CASES MAYBE. WE
INFORMED THAT YOU GOT OVERPAID
SO YOU'RE GONNA HAVE TO PAY
THAT MONEY BACK. SO FOUR KEY
ISSUES IN THE FIRST AUDIT
REPORT THAT WE ISSUE. THE
SECOND OUR REPORT WE SHOULD
FOCUS ON FRAUD. DETECTION
PREVENTION AND CETERA AND AS
YOU'VE HEARD FROM EDT- YOU KNOW
THEY HAD A- A PRESS CONFERENCE
IN DISCLOSURE OF ABOUT ELEVEN
BILLION OUR AUDIT REPORT TALKED
ABOUT TEN POINT FOUR BILLION
DOLLARS. FROM MARCH THROUGH
DECEMBER EDIE'S NUMBER WAS ARE
CONTINUING ON INTO JANUARY. WE
SEE IT. EXPLAINED THAT THESE
ARE POTENTIALLY FRAUDULENT I
THINK EDT CAN EXPLAIN I THINK
THEY BELIEVE IT'S ALL
FRAUDULENT PAYMENTS UP TO THE
ELEVEN BILLION DOLLARS. WE SAID
POTENTIALLY AT THIS POINT
BECAUSE HE REALLY HASN'T BEEN
ABLE TO GO IN. AND PROCESS LOOK
AT ALL OF THOSE CLAIMS THAT
WERE PAID OUR EITHER UNDER AN
UNCONFIRMED IDENTITY A
SUSPICIOUS ADDRESS ARE THE
EXAMPLES WE HAVE IN THE AUDIT
REPORT- SO WE DON'T KNOW WE
CERTAINLY KNOW IT'S GOING TO BE
IN THE BILLIONS OF DOLLARS. IT
WE FELT THAT THAT NUMBER WOULD
GROW AFTER WE ISSUED OUR RIGHT
ARE COMPLETED OUR FIELD WORK IN
DECEMBER AND THEN ISSUED A
REPORT IN JANUARY. AND
CERTAINLY EDT HAS COME UP WITH
A MORE SIGNIFICANT NUMBER
HIGHER NUMBER THAN THAN WE HAD
IN OUR REPORT WHICH DOESN'T
SURPRISE US- BECAUSE I THINK
THE KEY ISSUES WE TALKED ABOUT.
UNCONFIRMED IDENTITIES- WELL
AWARE OF THE SIX. WHERE MY-
MAILINGS GOING TO SUSPEND
ADDRESSES SOME INDIVIDUALS ARE
RECEIVING TWENTY THIRTY- EDT
CORRESPONDENTS IN THE MAIL AND
NONE OF THESE INDIVIDUALS LIVE
AT THIS ADRESS. TRYING TO
FIGURE OUT WHAT DO I DO WITH
ALL THIS GET BACK TO EDT SUCKS
ET DIDN'T SUSPEND OR TAKE
ACTION. UNTIL FAIRLY FAR INTO
THE- PANDEMIC THEIR FIRST.
ATTEMPT TO TRY TO PREVENT FRAUD
WAS IN JULY AND THAT WAS THE
SUSPICIOUS IDENTITIES AND-
UNCONFIRMED IDENTITIES AND THEY
PUT SOME STOP PAYMENT. CONTROLS
AND THEN IT WASN'T UNTIL
SEPTEMBER- WHERE THEY STARTED
HOUSE STOPPING PAYMENTS OUT TO
SUSPICIOUS ADDRESSES WHERE
MULTIPLE- CLAIM INFORMATION OR
CLAIM. BENEFITS FOR BEING SENT
TO THE SAME ADDRESS OR AN
ADDRESS IT SEEMS VERY
SUSPICIOUS. SO THAT WAS THE
FIRST ISSUE. IN THE FRAUD
REPORT THE SECOND ISSUE WAS A
COUPLE OF HIGH PROFILE
SITUATIONS THAT EDT WAS NOT
PREPARED FOR- AND DIDN'T HANDLE
AS WELL AS THEY SHOULD HAVE THE
FIRST IS RELATED TO THE FROZEN
ACCOUNTS WORKING WITH BANK OF
AMERICA. AS WE DISCUSSED IN THE
REPORT THERE WAS A LOT OF BACK
AND FORTH BETWEEN BANK OF
AMERICA AND ET DE- BUT EDT
DIRECTED BANK OF AMERICA TO
FREEZE THREE HUNDRED FORTY FOUR
THOUSAND ACCOUNTS. NOW THERE
IT'S VERY IMPORTANT TO HAVE
THOSE KINDS OF COMMUNICATION IN
COORDINATION WITH WOULD BE A
NAY IT WASN'T AS GOOD AS IT
SHOULD HAVE BEEN AND THE AND
THE KEY ISSUE THAT WE REALLY
HAD A PROBLEM WITH. OUR IS WHEN
HE DIRECTED BANK OF AMERICA TO
FREEZE THOSE THREE HUNDRED
FORTY FOUR THOUSAND ACCOUNTS IT
DIDN'T HAVE A PLAN OR A METHOD
OR APPROACH IT WAS GOING TO USE
TO ASSESS ALL OF THOSE ACCOUNTS
AND DETERMINE WHICH ONES WERE
REALLY LEGITIMATE CLAIMANTS.%
AND UNFREEZE THOSE ACCOUNTS AS
QUICKLY AS POSSIBLE. AND WHEN
WE COMPLETED OUR FIELD WORK IN
DECEMBER WE HAD DETERMINED THAT
ABOUT SEVENTY FIVE HUNDRED OUT
OF THOSE THREE HUNDRED FORTY
FOUR THOUSAND ACCOUNTS. HAVE
BEEN UNFROZEN SO THEY WORK
ATTENTIVELY A LOT OF LEGITIMATE
CLAIMANTS. WITH FROZEN
ACCOUNTS- THAT EDT HAD NOT
REVIEWED AND HAD NOT INFORMED
SB A- TO. UNFREEZE SO THOSE
CLAIMANTS. STATEMENT COULD GAIN
ACCESS TO THEIR BENEFITS. THE
SECOND KEY ISSUE IS THE
INCARCERATION DATA- THIS IS
WHERE EDT WASN'T CROSS
MATCHING. OUR CLAIMS COMING IN
WITH INCARCERATION DATA FROM
CDC ARE AND CERTAINLY FROM OUT
LOCAL. INDIVIDUALS INCARCERATED
AT THE LOCAL LEVEL OR
POTENTIALLY INCARCERATED OUT OF
STATE. SO WE DIDN'T SEE THAT
CROSS MATCHING EVEN THOUGH WHEN
WE DID SOME RESEARCH WE SAW
THAT BACK IN TWENTY SIXTEEN.
THERE WERE THIRTY FIVE STATES
DOING THIS TYPE OF CROSS
MATCHING AND IT'S A VERY
VALUABLE TOOL. ON TO PREVENT
FRAUD. EDT WASN'T DOING THAT-
AND WHEN THEY DECIDED THEY WANT
TO DO NEEDED TO DO THAT YOU
KNOW YOU'RE WELL AWARE THAT THE
DISTRICT ATTORNEY'S IF YOU LOOK
ISSUED A LETTER. SAYING THERE
ARE MILLIONS UPON BILLIONS OF
DOLLARS POTENTIALLY- GOING OUT
TO INCARCERATED INDIVIDUALS OR
ASSOCIATED WITH AN EXPANDING
CAR STRAIGHT INDIVIDUALS AND
CARCERI INDIVIDUALS IDENTITY
MAY HAVE BEEN STOLEN. OR IT MAY
BE AN INDIVIDUAL WHO WAS
SEEKING AND ULTIMATELY ABLE TO
GET BENEFITS- WE LOOKED AT THE
INFORMATION THAT YOU NEED TO
PUT TOGETHER THEIR ESTIMATES
ONCE THEY WERE ABLE TO START
CROSS MATCHING AND THE REASON
THEY WERE ABLE TO DO SO. IS THE
ATTORNEY GENERAL HAD TO STEP IN
AND ESSENTIALLY AUTHORIZED THE
DEPARTMENT OF CORRECTIONS TO
SHARE INCARCERATION DATA
INFORMATION I NEEDED HE WOULD
NEED TO BE ABLE TO DO THAT
CROSS MATCHING. THE OTHER STEP
THAT HE TOOK WAS THEY ENTERED
INTO A CONTRACT WITH A PRIVATE
VENDOR WHO HAD ACCESS TO
INFORMATION ABOUT INCARCERATED
INDIVIDUALS AT THE LOCAL LEVEL
AND CERTAINLY OUT OF STATE. SO
THAT WAS AN IMPROVEMENT
UNFORTUNATELY AGAIN IT CAME
LATE IN THE PANDEMIC- IS
SOMETHING THAT EDT HAS KNOWN
ABOUT FOR A WHILE THEY HAD BEEN
INFORMING THE LEGISLATURE
OVERTIME IN TWENTY EIGHTEEN
TWENTY NINETEEN AND AGAIN IN
TWENTY TWENTY. IT WAS SOMETHING
THAT EDT WAS LOOKING TO DO- BUT
NEVER REALLY MOVED FORWARD AND
GOT IT DONE AND TILL LATE IN
TWENTY TWENTY. WHERE THEY WERE
ABLE TO GET THE INCARCERATION
DATA FROM CDC ARE ENTERED INTO
THAT CONTRACT AND THE ESTIMATES
THEY GAVE US WHICH WE INCLUDING
THE OUR REPORT WE LOOK AT THEIR
ESTIMATES. ABOUT EIGHT HUNDRED
AND TEN MILLION DOLLARS OF
CLAIMS ASSOCIATED WITH
INDIVIDUAL AND INCARCERATED
INDIVIDUALS. SO THAT THAT WAS
THE SECOND KEY. ISSUE IN THE
FRAUD AUDIT REPORT. THE THIRD
KEY ISSUE JUST LOOK AT THIS. IN
THE AND THE- HOW EASY IS
COORDINATING WITHIN THE
DEPARTMENT- AS FAR AS
PREVENTION DETECTION OF FRAUD.
WE FOUND VERY DISJOINTED-
SITUATION THERE ARE A LOT OF
DIFFERENT UNITS WE ACTUALLY
HAVE A GRAPHIC IN THE PACKET
THAT WE PULLED OUT OF THE ART
REPORT. NOT EXPECTING YOU TO
LOOK AT IT BUT IT SHOWS. FOR
FIVE DIFFERENT UNITS IN SOME
UNITS ARE RESPONSIBLE FOR
IDENTIFYING IDENTIFYING
SUSPICIOUS CLAIMS FRAUDULENT
POTENTIALLY FRAUGHT THEN THEY
HAVE TO NOTIFY A DIFFERENT UNIT
WE NEED TO STOP PAYMENT ON THIS
PARTICULAR CLAIM. AND THERE
WASN'T A LOT OF COLLABORATION
COORDINATION IT'S VERY
DIFFICULT. TO BE ABLE TO FOR ET
DE TO BE ABLE TO OVERSEE AND
MAKE SURE OUR OUR FRAUD
DETECTION AND PREVENTION
EFFORTS WORKING EFFICIENTLY.
BECAUSE THERE WERE SO MANY
DIFFERENT UNITS RESPONSIBLE FOR
SO MANY DIFFERENT THINGS SO WE
FEEL THEY NEED TO HAVE
ESSENTIAL IN UMBRELLA UNIT A
UNIT THAT'S RESPONSIBLE FOR
COORDINATING ALL THE DIFFERENT.
ACTIVITIES OF THESE DIFFERENT
UNITS WITHIN EIGHTY DAYS VERY
DISJOINTED. THE OTHER THING
THAT WE- TALK ABOUT IN THAT
SECTION OF THE REPORT IS EDT
NOT NECESSARILY ASSESSING THE
AFFECTED EFFECTIVENESS OF THEIR
FRAUD PREVENTION TOOLS AND
DETECTION TOOLS. NOW THEY'RE
REQUIRED TO REPORT TO THE
LEGISLATURE ON AN ANNUAL BASIS
ABOUT FRAUD. BUT NOT
NECESSARILY REQUIRED TO ANALYZE
THEIR TOOLS AND THEN REPORT OUT
HOW EFFECTIVE THOSE TOOLS HAVE
BEEN IN DETECTING AND
PREVENTING FRAUD. SO WE HAVE
SOME RECOMMENDATIONS RELATED TO
THAT BUT THAT WAS THE THIRD KEY
ISSUE IN THE AUDIT REPORT THE
SECOND ON A REPORT HAT WE
ISSUE RELATED TO. FRAUD
DETECTION AND PREVENTION. SO
NOW MEMBERS I'LL TAKE YOU TO
THEIR RECOMMENDATIONS ARE THAT
WE MADE TO THE LEGISLATURE
BECAUSE WE FELT SOME OF THESE
ISSUES AS I INDICATED EARLIER
IN MY PRESENTATION. WE
IDENTIFIED BACK IN MARCH OF
TWENTY ELEVEN WE ISSUED OUR
FIRST THOUGHT IT WE DID A
FOLLOW UP ON IT NOVEMBER OF
TWENTY TWELVE STILL SAW THERE
WERE SOME. DIFFICULTIES THAT
EDT WAS HAVING AND THEY WEREN'T
MAKING ENOUGH PROGRESS IN
IMPLEMENTING RECOMMENDATIONS SO
WE THINK THERE NEEDS TO BE.
SOME STATUTORY CHANGE AS CENTER
NIELSEN AND I KNOW MANY OTHERS
HAVE EMBRACED THERE'S A LOT OF-
LEGISLATION HAS BEEN INTRODUCED
WELL LET ME STEP YOU THROUGH
OUR KEY LEGISLATIVE
RECOMMENDATIONS AND WHAT
SUBJECT MATTER THEY TIED TO. SO
THE FIRST SET OF LEGISLATIVE
RECOMMENDATIONS ARE TIED TO.
THE RECESSION PLANNING SO EDT
NEEDS TO HAVE A COMPREHENSIVE
RECESSION PLAN AS I SAID. WE
THE RESEARCH WE LOOKED AT SAYS
IT RECESSION OCCURS EVERY FIVE
AND A HALF TO SIX YEARS SO
YOU'VE GOT TO HAVE A PLAN IN
PLACE WHAT ARE WE GOING TO DO-
WITH REGARD TO STAFFING WITH
REGARD TO SOME OF OUR
PROCESSES. SO THAT WE CAN
QUICKLY ADJUST TO A SURGEON
CLAIMS WHEN WE ARE STARTING TO-
EXPERIENCE A RECESSION IN
CALIFORNIA SO THEY NEED TO HAVE
THIS RECESSION PLAN IN PLACE SO
THEY CAN PUT IT. PUT IT IN
ACTION WANT TO BE ABLE TO
RESPOND TO RESEARCH- AND
UNFORTUNATELY PEOPLE BEING ON A
AND- SAME THING IN DEALING WITH
STAFFING ISSUES PROCESSES
ETCETERA WE THINK THAT
RECESSION PLAN NEEDS TO BE PUT
IN PLACE. WITHIN A YEAR OF THE
LEGISLATURE ARE PASSING
LEGISLATION IN THE GOVERNOR
SIGNING IT AND THAT BILL BEING
ENACTED INTO LAW. WHAT WE'RE
GIVING EIGHTY TWELVE MONTHS
AFTER THAT TO GET THAT
RECESSION PLAN IN PLACE. THEN
WHAT WE'RE SUGGESTING SHOULD
ALSO BE IN STATUTE IS EVERY
THREE YEARS THEREAFTER THEY
NEED TO REASSESS THAT PLAN AND
DETERMINE WHETHER NEED THEY
NEED TO MAKE MODIFICATIONS TO
THE PLAN. IT REALLY IS VERY
IMPORTANT FOR EIGHTY TO HAVE
THAT. THE OTHER ISSUE- THAT
WE'RE RECOMMENDING LEGISLATURE
REQUIRE EDT TO DO THIS IS
REGARDING OVERPAYMENTS SO
REQUIRE EDT TO POST ON ITS
WEBSITE EVERY SIX MONTHS. OUR
INFORMATION RELATED TO
OVERPAYMENTS HOW MANY
OVERPAYMENTS HAVE THEY
IDENTIFIED HOW MANY OF THOSE
INDIVIDUAL CLAIMANTS HAVE THEY
NOTIFIED THAT THEY HAVE BEEN
OVERPAID AND THEY HAVE TO PAY
THE MONEY BACK. HOW MUCH MONEY
HAVE THEY RECOVERED FROM THOSE
INDIVIDUALS HAVE THEY WAIVED
ANY OF THOSE OVERPAYMENTS THERE
IS THE AUTHORITY. FOR EDT TO
WAIVE OVERPAYMENTS I THINK IT'S
ABOUT A TWO YEAR WINDOW. BUT
THE CLAIMANT HAS TO SUBMIT A
HARDSHIP CLAIM AND CURRENTLY
IT'S OUR UNDERSTANDING THAT
PROCESS IS A MANUAL PROCESS SO
AGAIN. THIS WILL BE ADDED ON TO
THEIR EXISTING WORKLOAD. WHICH
ALREADY IS DIFFICULT FOR THEM
TO MANAGE I TALKED A LITTLE BIT
ABOUT. THE L. ELIGIBILITY
DETERMINATION ISSUES FOR THOSE
TOLD TWO POINT FOUR MILLION
CLAIMANTS THEY HAVE TO DEAL
WITH. THE ONE POINT SEVEN
MILLION CLAIMANTS AS FAR AS THE
CERTIFICATIONS THAT WERE
DEFERRED OR SUSPENDED. NOW IN
ADDITION TO THAT. IN
COMBINATION THAT THEY'RE GOING
TO HAVE. I'M SURE INDIVIDUALS
WHO SUBMIT HARDSHIP CLAIMS
SAYING I CAN'T AFFORD TO PAY
THIS MONEY BACK I ACTED IN GOOD
FAITH PLEASE WAIT THE BENEFITS
SO WE'RE SUGGESTING IN OUR
LEGISLATIVE RECOMMENDATIONS
THAT YOU NEEDED TO BE REQUIRED
TO DISCLOSE. ALL OF THIS
INFORMATION ON ITS WEBSITE
EVERY SIX MONTHS. THE NEXT
ISSUE IS LESSONS LEARNED THEY
NEED TO CONVENE A WORKING
GROUP. TO REALLY REFLECT ON
WHAT WORKS DURING THE PANDEMIC
AND WHAT DID NOT WORK AND USE
THOSE LESSONS LEARNED AS IT
BUILDS ITS RECESSION PLAN- SO
THAT CALIFORNIANS DON'T GO
THROUGH THIS AGAIN CLEARLY THE
PANDEMIC'S UNPRECEDENTED. BUT
AS I'VE BEEN SAYING RECESSIONS
ARE NOT UNPRECEDENTED BAY
COMMENTS THEY ARE CYCLICAL SO
WE NEED TO HAVE THOSE LESSONS
LEARNED MEMORIALIZED AND USED
TO DEVELOP A BETTER ARE
PLANNING IN THE FUTURE THAT
RECESSION PLANNER REFERRED TO.
THE NEXT ISSUES AGAIN ALL
LEGISLATIVE RECOMMENDATIONS
RELATED TO CROSS MATCHING
REQUIRING ET DE IN STATUTE TO
CROSS MATCH AGAINST STATE OF
CALIFORNIA CDCR INCARCERATION
DATA AND THEN ALSO TO ACCESS IF
THEY HAVE TO DO IT THROUGH A
VENDOR. DO THAT ACCESS IN
INCARCERATION DATA OF
INDIVIDUALS AT THE LOCAL LEVEL
AND OTHER INDIVIDUALS AND OTHER
STATES SO THAT THEY HAVE THAT
CROSS MATCH THEY CAN PREVENT
THOSE CLAIMS. FROM EVER BEING
PAID THAT WILL BE A HUGE
DETERRENT AND PREVENTION
MEASURE FOR- THE DEPARTMENT AND
FOR THE FUTURE. THE OTHER ISSUE
IS REPORTING TO THE LEGISLATURE
ON AN ANNUAL BASIS ABOUT IT'S
FRAUD DETECTION EFFORTS HOW
EFFECTIVE HAVE THEIR TOOLS BEEN
ARE THEY USEFUL TOOLS AND WE
HAVE A RECOMMENDATION EDT
YOU'VE GOT TO ANALYZE THE
EFFECTIVENESS OF YOUR TOOLS AND
IF THERE ARE SOME TOOLS THAT
ARE NOT EFFECTIVE. WE DON'T
NEED TO KEEP USING MOUSE BUT IF
THERE ARE OTHER TOOLS THAT ARE
VERY EFFECTIVE LET'S CONTINUE
TO USE THOSE AND BOLSTER THOSE
TOOLS SO THAT WE PREVENT
PAYMENTS FROM EVER GOING OUT
THE DOOR ONTO A FRAUDULENT YOU
KNOW AN INDIVIDUAL WHO FILED A
FRAUDULENT CLAIM- AND THEN THE
LAST ISSUE. ANDIN THE
LEGISLATIVE RECOMMENDATIONS IS
REQUIRE EDT BY JANUARY OF
TWENTY TWENTY TWO. AND THEN BI
ANNUALLY. AFTER THAT TOO AGAIN
ASSESS THE EFFECTIVENESS OF
THOSE TOOLS. AND REPORT THAT TO
THE LEGISLATURE. SO THAT
CALIFORNIANS KNOW THAT HE DOES
HAVE GOOD STRONG TOOLS IN PLACE
NOW JANUARY TWENTY TWENTY TWO
SEEMS LIKE A FOR A LONG WAYS
OFF SO WHAT WE ARE INCLUDING IN
THIS RECOMMENDATION IS THAT EDT
REPORT TO THE LEGISLATURE BY
JULYOF THIS YEAR JULY TWENTY
TWENTY ONE. THEIR PROGRESS IN
DETERMINING HOW THEY'RE GOING
TO ASSESS ALL OF THEIR TOOLS
ARE AND HOW THEY WOULD ASSESS
THE EFFECTIVENESS OF THOSE
TOOLS WHAT WHAT MEANT METRICS
THEY WILL USED TO DETERMINE
WHETHER OR NOT THOSE TOOLS ARE
EFFECTIVE AND AGAIN REPORTING
THAT TO THE LEGISLATURE BY JULY
AS FAR AS THEIR PROGRESS. IN
COMING UP WITH WAYS TO DO THAT
AND THEN BY JANUARY OF TWENTY
TWENTY TO HAVE THAT IN PLACE
AND THEN EVERY COUPLE OF YEARS
AFTER THAT REASSESSED THOSE
TOOLS AND DETERMINE WHETHER OR
NOT THEY'RE CONTINUING TO BE
EFFECTIVE AND IF THEY'RE NOT
LET'S STOP USING THOSE TOOLS
THOSE ARE ALL OF THE KEY
RECOMMENDATIONS- TO THE
LEGISLATURE WE DO HAVE
RECOMMENDATIONS TO ET DE. I
WASN'T GOING TO GO THROUGH
THOSE IN DETAIL BUT WE DO HAVE
IN YOUR PACKET IT'S THE THIRD
DOCUMENT- WHICH WE BROUGHT
AGAIN ALL OF THE
RECOMMENDATIONS TOGETHER- THEY
ARE LAID OUT BY SUBJECT AREA
AND THEY ARE ALSO AS I SAID
LAID OUT BY THERE ARE CERTAIN
RECOMMENDATIONS THAT WE'RE
SUGGESTING EDT IMPLEMENT AND
MEDIALLY WORKING WOULD BE A
VERY FOR EXAMPLE TO GET A
COMPREHENSIVE LIST OF THESE
THREE HUNDRED AND FORTY FOUR
THOUSAND ACCOUNTS THAT HAVE
BEEN FROZEN I NEGLECTED TO
MENTION THAT EARLIER ONE OF THE
PROBLEMS WAS THEY DIDN'T HAVE A
PLAN TO ADDRESS ALL THOSE BUT
THEY DON'T EVEN HAVE. A
COMPREHENSIVE LIST OF ALL OF
THE ACCOUNTS THAT HAVE BEEN
FROZEN ARE SO THAT THEY CAN GO
THROUGH AND IDENTIFY EACH OF
THOSE TAKE A LOOK AT THEM AND
HOPEFULLY GET SOME OF THESE
LEGITIMATE CLAIMANTS WHOSE
ACCOUNTS ARE FROZEN UNFROZEN SO
WE HAVE SOME RECOMMENDATIONS
LIKE THAT THAT WE THINK YOU
NEED HE NEEDS TO DO IMMEDIATELY
AND THEN WE HAVE OTHER
RECOMMENDATIONS THAT WE EXPECT
EDT TO GET DONE BY MARCH BY
JULY AND BY THE BY LATER IN THE
YEAR WE TRY TO INCLUDE AS- MANY.
THOSE IN CURRENT LEGISLATIVE
YEAR I KNOW MEMBERS ARE HERE
UNTIL. THE SECOND WEEK OF
SEPTEMBER SO WE FELT IT WAS
REALLY IMPORTANT FOR YOU NEED
TO GET A LOT OF THESE. NOT JUST
TO REPORT THE LEGISLATURE BUT
FOR CALIFORNIANS GET THESE
RECOMMENDATIONS IMPLEMENTED AS
QUICKLY AS POSSIBLE. SO THAT.
THE EFFICIENCY OF THE
DEPARTMENT IN PROCESSING CLAIMS
HELPING PEOPLE WHO ARE CALLING
CALL CENTERS MAKING SURE WE'RE
PREVENTING FRAUD. ALL OF THAT
GETS DONE AS QUICKLY AND AS
EFFICIENTLY AS POSSIBLE. SO
WITH THAT MADAM CHAIR- I CAN
ANSWER ANY QUESTIONS OR I KNOW
YOU MENTIONED IN YOUR OPENING
COMMENTS THAT. YOU WERE GONNA
HOLD QUESTIONS UNTIL ALL OF THE
PANELS. HAD HAD THEIR-
OPPORTUNITY TO PRESENT THAT
COMPLETES MY PRESENTATION.
THANK YOU VERY MUCH OF FOR THE
PRESENTATION ON STATE AUDITOR-
WE AS I SAID EARLIER WE'RE
GOING TO GET THROUGH THESE
PANELS FIRST AND THEN WE WILL
OPEN UP FOR. QUESTIONS SENATOR
DOLLY I KNOW YOU HAD A
QUESTION- LET'S MOVE ON TO OUR
NEXT PANEL WHICH IS. DIRECTOR
SIGNS FROM THE EMPLOYMENT
DEVELOPMENT DEPARTMENT. WELL
KARTUZY AND ALL THE COMMITTEE
MEMBERS I WILL READ A SCIENCE
THE NEWLY APPOINTED DIRECTOR OF
EDG. THANK YOU FOR HAVING ME
HERE TODAY TO PROVIDE AN UPDATE
ON THE DEPARTMENT I WELCOME
THIS YEAR. WITH ME. ARE THE
NEWLY- ALSO APPOINTED ET DE
EXECUTIVES NANCY FARIAS CHIEF
DEPUTY DIRECTOR FOR POLICY
LEGISLATION AND EXTERNAL
AFFAIRS. CAROL WILLIAMS CHIEF
DEPUTY DIRECTOR OF OPERATIONS
AND KEVIN MATURE. DIRECTOR OF
LEGISLATIVE AFFAIRS AFTER THE
PANEL OF WAR AS WAS MENTIONED
AT THE END OF THE PANELS I WILL
BE GLAD TO ANSWER ANY OF YOUR
QUESTIONS AND IF WE DON'T HAVE
THE ANSWERS TODAY WILL BE SURE
TO GET THEM TO YOU AND THE
PUBLIC. FIRST I WANT TO PROVIDE
YOU WITH A BRIEF DESCRIPTION OF
MY BACKGROUND. I STARTED AT THE
DEPARTMENT AT THE BEGINNING OF
THIS YEAR I HAVE FORTY YEARS OF
EXECUTIVE EXPERIENCE IN BOTH
THE PUBLIC AND PRIVATE SECTORS
ELEVEN YEARS EXPERIENCE IN
INFORMATION TECHNOLOGY AND
PUBLIC BENEFIT PROGRAMS AND A
LOT OF EXPERIENCE WITH CALL
CENTERS. THIS IS THE FOURTH
DEPARTMENT IN WHICH I WILL HAVE
SERVED AS THE DIRECTOR
INCLUDING THE DEPARTMENT OF
SOCIAL SERVICES. IN THIS FIRST
MONTH I HAVE SEEN BUT OUR
CHALLENGES ARE AND THEY ARE
MANY. BUT I'VE SEEN SUCH
CHALLENGES IN MY FORTY YEARS
AND I KNOW THERE ARE SOLUTIONS.
TO THESE PROBLEMS. BEFORE
ADDRESS LAUDED FINDINGS I WANT
TO PROVIDE SOME CLARITY ABOUT
FRIDAY'S ANNOUNCEMENT RELATED
TO EDIE'S ROLLOUT OF THE NEXT
PHASE OF FEDERAL EXTENSIONS. AS
YOU KNOW THE CARES ACT
EXTENSIONS ENDED DECEMBER
TWENTY SIXTH LAST YEAR. NEW
FEDERAL EXTENSIONS WERE SIGNED
INTO LAW ONLY AT THE END OF
TWENTY TWENTY. STARTING IN
EARLY JANUARY TWENTY TWENTY ONE
EDT BEGAN PROCESSING CLAIMS
AGAIN FOR FEDERAL EMPLOYMENT
BENEFITS. WE WERE ONE OF THE
FIRST STATES TO BEGIN
PROVIDING. PEOPLE THE THREE
HUNDRED DOLLARS PER WEEK. WE
WORKED AS QUICKLY AS POSSIBLE
INSTITUTE THE NEW EXTENSIONS
AND I'M GLAD TO REPORT THAT WE
HAVE ALREADY PAID THREE POINT
ONE MILLION PEOPLE FOUR POINT
SEVEN BILLION DOLLARS. TO THE
EXTENSION FOR FEDERAL BENEFITS
INCLUDING THE PANDEMIC
UNEMPLOYMENT ASSISTANCE AND
ENDEMIC EMERGENCY UNEMPLOYMENT
COMPENSATION RECIPIENTS WHO HAD
AN EXISTING TAKE CLAIM AS OF
DECEMBER TWENTY SIX. WE ARE
UPDATING OUR SYSTEMS
ELIGIBILITY RULES TO BE ABLE TO
PROCESS THE NEXT PHASE OF
EXTENSION BENEFITS FOR ROUGHLY
A HUNDRED AND EIGHTY FOUR.
THOUSAND INDIVIDUALS WHOSE
FEDERAL CLAIMS WERE EXHAUSTED
BEFORE THE CARERS ACT EXPIRED
IN DECEMBER. IN OTHER WORDS
THERE WERE NO LONGER ELIGIBLE
TO RECEIVE BENEFITS AND OUR
SYSTEM NEEDS UPDATING TO ACCEPT
CLAIMS FROM PEOPLE WHO HAD
EXHAUSTED THEIR ELIGIBILITY. BY
MARCH SEVENTH THESE CLAIMS WILL
BE ABLE TO CERTIFY THEIR
ELIGIBILITY EDT WILL BE ABLE TO
SUCCESSFULLY. SO PROCESS THEIR
CLAIMS. SO THIS WEEK WE BEGAN
CONTACTING INDIVIDUALS WHO
CLAIM BENEFITS CLAIM FEDERAL
BENEFITS TO ENCOURAGE THEM TO
CERTIFY THEIR ELIGIBILITY FOR
ASSISTANCE. IN MARCH SEVENTH HE
DID NOT PROVIDE THIS
INFORMATION IN DURING THE
HEARINGS ON FEBRUARY FIRST AND
THIRD BECAUSE THE DECISIONS
RELATED TO THE PROCESS WOULD
NOT MEET UNTIL. JUST LAST WEEK.
ONCE THE DECISIONS WERE FIRM ON
FRIDAY WE INFORMED THE
LEGISLATURE DURING A REGULARLY
SCHEDULED A SCHEDULED CALL AND
THEN THE NEWS MEDIA. ONE OF THE
THINGS THAT IS IMPORTANT TO ME
IS TRANSPARENCY TRANSPARENCY
WITH ACCURACY. I APPRECIATE THE
LEGISLATORS NEED TO KNOW. WHEN
THESE THINGS ARE HAPPENING
PARTICULARLY BECAUSE OUR STAFF
HAS BEEN WORKING WITH US UP FOR
LEGITIMATE CLAIMANTS WHO ARE
THEIR CONSTITUENTS. I THANK YOU
FOR ASSISTING US IN GETTING THE
INFORMATION OUT. NOW TURNING
BACK TO THE ARTISTS WHO USE THE
WEEK BEFORE LAST THERE IS A LOT
OF WORK TO BE DONE. WE AGREE
WITH EACH OF THE AUDITOR'S
RECOMMENDATIONS AND ALL ARE
ALREADY MAKING CHANGES TO OUR
SERVICE TO CUSTOMERS. PROVING
OUR ABILITY TO FIGHT THE FIRST
SLIDE A FRONT FACING OUR SYSTEM.
I KNOW THAT WE CAN RECORD THIS
WEEK AS WE RECOMMEND THESE AS
WE IMPLEMENT THESE
RECOMMENDATIONS. WE WILL FIND
SOLUTIONS. TO THE PROBLEMS
BROUGHT ON BY THIS ONCE IN A
LIFE PANDEMIC AND ECONOMIC
RECESSION IT HAS COST. IN OUR
IMPLEMENTATION. WE INTEND TO
IDENTIFY MANY ROOT CAUSES OF
THE PROBLEMS AND WE WILL CREATE
SOLUTIONS AS WE PROGRESS. WE
ARE FOCUSED ON ACTION TRENCHING
BY TWO PRIMARY GOALS GET
EMPLOYMENT BENEFITS AS QUICKLY
AS POSSIBLE INTO THE HANDS OF
ELIGIBLE CALIFORNIANS. AND STOP
FRONT BEFORE IT ENTERS THE
SYSTEM. WE HAVE FIVE KEY
STRATEGIES TO MAKE THIS HAPPEN.
ONE IMPROVE EDIE'S OPERATION
AND GOVERNANCE ABSOLUTELY
NECESSARY IN ORDER TO MEET OUR
PRIMARY GOALS. INCLUDING
OPERATIONS AND GOVERNANCE
INCLUDES UPGRADING THE COST
INTEREST ABILITY TO DELIVER
RESPONSIVE EFFICIENT SERVICE.
ACTING IMPROVED STAFF TRAINING
AND EXPANDING LANGUAGE ACCESS
TO BE REFLECTIVE OF
CALIFORNIA'S NEEDS. WE ARE
INCREASING COMMUNICATION AND
TRANSPARENCY TRANSPARENCY ABOUT
THE STATUS OF CLAIMS IN PROCESS
AND OPERATIONAL CHANGES THAT
WILL AFFECT THE CLIENT
EXPERIENCE. ONE ACTION TO GO
ALREADY TAKEN MISTER CREATION
OF THE CURRENT CENTER DIVISION.
UNEMPLOYMENT INSURANCE FRENCH
THIS COMMAND CENTER WILL MANAGE
CALL CENTER RECOMMENDATIONS AND
SOLUTIONS TO A GROUP CALL
CENTER OPERATIONS. WE MUST
UPGRADE THE CALL CENTERS
ABILITY TO DELIVER RESPONSIVE
EFFICIENT SERVICE SO THAT CALLS
ARE RESOLVED AFTER ONLY A
SINGLE CONTACT WITH THE
DEPARTMENT. WE WILL ESTABLISH A
PROCESS FOR TRACKING AND
ANALYZING THE REASONS WHY YOU
WHY CLAIMS CALLS FOR ASSISTANCE
COMING I NEED TWENTY TWENTY
ONE. BETWEEN MAY TWENTY TWENTY
ONE IN OCTOBER TWENTY TWENTY
ONE WE WILL DEVELOP THE TOOLS
AND PROCESSES TO COLLECT FIRST
CALL RESOLUTION DATA. USING
THIS DATA BEGINNING TWENTY
TWENTY ONE WE WILL DETERMINE
HOW EFFECTIVE THE CALL CENTER
HAS BECOME IN PROVIDING
ASSISTANCE TO CALLERS. BUT MAKE
NO MISTAKE WE ARE NOT READY TO
MAKE IMPROVEMENTS UNTIL THAT
TIME. WE ARE HIRING MORE THAN
NINE HUNDRED STAFF THIS MONTH.
THE STAFF MUST BE TRAINED ON
DOL'S NVDS COMPLEX RULES. BUT
THEY WILL BENEFIT FROM A NEW
KNOWLEDGE MANAGEMENT TOOLS THAT
THE DEPARTMENT IS NOW USING.
THIS TOOL PROVIDES SECTIONS
FROM THE TRAINING MANUAL IN
SEARCHABLE IN SEARCHABLE
DATABASES TRAINING ARTICLES AND
YOU AYE PROGRAMMERS. ALL OF THE
STAFF WILL BE USING KEYWORD
SEARCHES IN THE TOOL FOR
FINDING INFORMATION TAKEN.
EIGHT TO THE CUSTOMER ABOUT A
SPECIFIC QUESTION. THIS IS. THE
AVAILABILITY OF SUCH A TOOL. TO
PROVIDE THESE KINDS OF CANCERS
IS A STANDARD INDUSTRY-
PROCEDURE AND WE'RE GOING TO BE
USING IT YOU'RE A FEW EXAMPLES
OF PLANNED ACTION TO JUST THIS
IS JUST A FEW THINGS THAT WE'RE
DOING TO COMBAT OPERATIONS
GOING FORWARD. SECOND TO
IMPROVE COMMUNITIES ABILITY TO
MAKE TIMEY DECISIONS ABOUT
POTENTIALLY FRAUDULENT CLAIMS
AND CONTINUALLY FIND WAYS TO
IDENTIFY AND PREVENT FRAUD. EDT
HAS FACED NEW LEVELS OF FRAUD
AND CRIMINAL ATTACKS TO OUR
SYSTEM THAT WE HAVE NEVER SEEN
IN THE PAST. YOU AYE SYSTEMS
AROUND THE COUNTRY WERE
TARGETING OKAY NICE CRYING
IMMEDIATELY WAS NO EXCEPTION.
HOWEVER WE MUST INSURE AS MUCH
AS POSSIBLE THAT LEGITIMATE
CLAIMS AT ACCESS TO THEIR
BENEFITS WHAT WE WORK TO
PREVENT FRAUD. WE MUST ACT
QUICKLY AND EFFICIENTLY TO MAKE
DETERMINATIONS SO LEGITIMATE
CLAIMS GET THEIR BENEFITS
FASTER WE ARE NOW REVIEWING OUR
FRAUD FILTERS AS WAS SUGGESTED
TO PREVENT THIS FROM HAPPENING
AGAIN. I WANT TO PUT A PERSONAL
NOTE HERE. I TOO AM GETTING
LETTERS AND EMAILS AND CALLS.
FROM CLAIMANTS WHO ARE
FRUSTRATED. I GREW UP IN A LOW
INCOME COMMUNITY. I KNOW WHO
THESE PEOPLE ARE THEY WERE MY
FRIENDS AND NEIGHBORS. I HAVE.
AS MUCH. RIGHT TO HELP THESE
PEOPLE OUT AS ANYBODY. IN THIS
HEARING. BUT I WANT YOU TO KNOW
THAT THESE ARE THE KIND OF
PEOPLE WHO I KNOW. AND WHAT IS
HAPPENING TO THEM IS NOT
ACCEPTABLE TO ME. WE ARE ALSO
WORKING CLOSELY WITH TOP
INDUSTRY SECURITY CONSULTANTS
TO CREATE NEW WAYS TO STAY
AHEAD OF SOPHISTICATED CRIMINAL
ACTIVITY. FOR EXAMPLE WE
RECENTLY CONTRACTED WITH AN
ECCENTRIC EVALUATE OUR FRAUD
DETECTION AND PREVENTION
OPERATIONS INCLUDING THE WORK
OF ID ME AT TIMES AND WRITERS.
CALIFORNIA SHOULD CONTINUE TO
BE TRANSPARENT ABOUT THE FRAUD
OR TAX EXT THAT WE'RE
EXPERIENCING AND LEANED THE
WAY. TO PREVENTING ID THEFT AND
ONLINE UNEMPLOYMENT TRY. THREE
HE DECIDED TO CREATE A
TECHNOLOGY. WE MUST CREATE A
SYSTEM THAT CAN RESPOND TO
TODAY'S NEEDS AND TOMORROW'S
NEEDS. A COMPLETE OVERHAUL IS
GOING TO REQUIRE SIGNIFICANT
MONEY TIME AND STAFF TRAINING.
AT THE RECOMMENDATION OF THE
EDT STRIKE TEAM IN IN
COORDINATION WITH THE
DEPARTMENT OF TECHNOLOGY. ARE
PROJECT BENEFITS SYSTEMS
MODERNIZATION WAS PASSED IN
SEPTEMBER OF TWENTY TWENTY. ONE
CRITICAL REASON THAT THIS STEP
WAS TAKEN WAS TO ENSURE THAT
INEFFICIENT BUSINESS PROCESSES
IDENTIFIED DURING THE PANDEMIC
ARE NOT INCLUDED IN THE NEW
PLATFORM. INSTEAD WE WILL
REVIEW POLICIES AND PROCEDURES
AND PRIORITIZE THE
SIMPLIFICATION OF THE PROGRAM
BEFORE RESTARTING OUR BENEFIT
SYSTEMS MODERNIZATION PROJECT.
THE TERM GARBAGE IN GARBAGE OUT
WE'RE NOT GOING TO DO THAT-
WE'LL REVIEW IN ALL OF OUR
PROCESSES. BUSINESS PROCESS-
CREATED DATE AND AT A CERTAIN
DATE AND TIME TO ADDRESS
CURRENT ISSUES. OUR ISSUES ARE
MUCH MORE COMPLICATED THAN IN
THE PAST AND WE'RE REALLY GOING
TO HAVE TO LOOK AT OUR BUSINESS
PROCESSES. WELL THIS TECHNOLOGY
SPREADING- AND IMPLEMENTING
HOWEVER. WE WILL CONTINUE TO
IMPROVE AND EXPAND THE CURRENT
SYSTEM WITH THE BEST IN THE
BUSINESS OPTIONS. BY JUNE
TWENTY TWENTY ONE WE WILL
IDENTIFY IMPROVEMENTS IN CLAIMS
PROCESSING. PAYMENTS WE WILL
IMPLEMENT SECTOR SOLUTION. IN
THE CURRENT- MOST RECENT
APPROACH WHICH IS A MODULAR-
MODULAR APPROACHES AND WILL
PRIORITIZE THE BENEFITS TO OUR
CLIENTS THE CLAIMS ARE FIRST.
NUMBER FOUR COORDINATE WITH
FEDERAL AUTHORITIES AND OTHER
STATES TO IDENTIFY AND STOP THE
FRAUD IN THE PANDEMIC
UNEMPLOYMENT ASSISTANCE PROGRAM.
THE OVERWHELMING MAJORITY OF
FRAUD THANK YOU DEAN D.
EXPERIENCED. 95% AS BEING IN
FEDERAL GIMMICK UNEMPLOYMENT
ASSISTANCE PROGRAM WAS DESIGNED
TO PROVIDE UNEMPLOYMENT
BENEFITS TO INDEPENDENT
CONTRACTORS AND THE SELF
EMPLOYED. BECAUSE THIS PROGRAM
WAS CREATED TO PROVIDE MUCH
NEEDED BENEFITS TO THOSE WHO
LOST THEIR LIVELIHOODS DURING
THE PANDEMIC. FOR WHOM THE
STATE UNEMPLOYMENT AGENCIES DID
NOT HAVE EMPLOYMENT AND WAGE
RECORDS IT DID NOT CONTAIN
CONTAIN THE SAFEGUARDS THAT
REGULARLY WHITE HOUSE. WELL
BARRIERS TO ENTRY. KERN SELF
CERTIFICATION OF ELIGIBILITY
AND RELATIVELY HIGH PAYOUTS
MADE IT SUSCEPTIBLE TO FRAUD.
ORGANIZED CRIME CONTINUES TO
ATTACK THE P. WORD PROGRAM AND
IS CONSTANTLY ADAPTING TO FRAUD
PREVENTION EFFORTS. ADDRESSING
THIS IN A STATE BY STATE
APPROACH IS NOT GOING TO
PRODUCE THE RESULTS THAT A
NATIONAL LAW ENFORCEMENT LAND
EFFORT CAN. EDT CONTINUES TO
ACTIVELY PARTICIPATE IN THE
NATIONAL ASSOCIATION OF STATE
WORKFORCE AGENCIES AS WELL. AND
TO HEAR FROM OTHER STATES THE
BEST PRACTICES BEING USED TO
ADDRESS THE MAJOR CHALLENGES
FACING THE Y. AGENCIES ACROSS
THE COUNTRY THE STOCK PRICE.
GIVEN THE NATIONAL SCOPE OF
IMPOSTOR FRAUD SCHEMES WE AND
OTHERS HAVE CALLED ON THE US
DEPARTMENT OF LABOR. TO ENHANCE
THE COORDINATION TO STOP THE
EFFORTS OF SOPHISTICATED FRAUD
SCHEMES BEFORE THEY SPREAD FROM
STATE TO STATE. WE ARE LOOKING
FORWARD TO HAVING A PARTNER
WITH THE FEDERAL GOVERNMENT.
THANKFUL TO LEADERS LIKE
SENATOR FEINSTEIN SENATOR BY
THE- SPEAKER PELOSI FOR CALLING
FOR FEDERAL SUPPORT. FOR THE
STATE'S TO FIGHTING RIGHT IN MY
FRONT. THIS COORDINATED
RESPONSE WILL IMPROVE EACH
STATE ABILITY TO FIGHT CRIME.
ACCORDING TO YOUR RESPONSE IS
CRITICAL AND SO WE ARE
OPTIMISTIC THAT WITH THE NEW
ADMINISTRATION'S LEADERSHIP.
WILL MAKE IT HAPPEN. FINALLY
NUMBER FIVE. PROTOCOLS AND
PROCEDURES IN PLACE TO HOLD EDT
ACCOUNTABLE TO THE
RECOMMENDATIONS OF THE STATE
AUDIT REPORTS MEGACENTRE BRAND
TAKES AN ORGANIZATIONAL GOALS
ANY DEPARTMENT MUST BUILD
ACCOUNTABILITY INTO ITS
OPERATIONS AND CULTURE. THIS
STARTS WITH ME IT WAS TRANSFER
SEAMLESSLY TO MONITOR SHIP AND
FUTURE EDT ADMINISTRATIONS IN
ORDER TO PREVENT THE MISTAKES
OF YEARS PAST. WE WILL USE THE
AUDITOR'S RECOMMENDATIONS ALONG
WITH THE STRIKING STREAM
CONSTRUCTING RECOMMENDATIONS AS
A BLUEPRINT FOR MOVING THE
DEPARTMENT FORWARD. WE HAVE
CREATED A GOVERNANCE STRUCTURE
TO MAKE THESE RECOMMENDATIONS
AND- MAKE TO MAKE SURE THESE
RECOMMENDATIONS IN THEIR TIME
LINES ARE BEING FOLLOWED. WE'VE
BEEN USING THE STRIKE TEAM
STEERING COMMITTEE WHICH MEETS
WEEKLY. TO STRATEGIZE A DIRECT
EFFORTS ON THE COMPLETION OF
THE STRIKE TO CONSTRUCTING
RECOMMENDATIONS. THE SAME
APPROACH WILL BE USED TO
COMPLETE THE AUDIT
RECOMMENDATIONS SO THE
DEPARTMENT IS ABLE TO TRACK
COMPLETE. FOR ALL EFFORTS. WE
WILL FINALIZE PLANS TO ADDRESS
THE OUTSTANDING DETERMINATION
AN OVERPAYMENT LOCALS WILL
CONTINUE TO FOCUS ON GETTING AN
UNEMPLOYMENT BENEFITS AS
QUICKLY AS POSSIBLE TO ELIGIBLE
CALIFORNIANS AND STOP RIGHT
BEFORE INTERESTED SYSTEM. THESE
FIVE HE SUPPORT STRATEGIES WILL
PRODUCE SOME OF THE MAJOR
CHANGES THAT ARE NEEDED EDG AND
CARRY THEM INTO THE FUTURE.
BEFORE I CONCLUDE I WANT TO
THANK THE STATE AUDITOR AND HER
TEAM FOR THE PROGRESSION
PROFESSIONALS AND THEY BROUGHT
THROUGHOUT THE AUDIT PROCESS.
WE WILL WORK TO SEE THAT THE
COMPLETION OF THESE
RECOMMENDATIONS RESULTED IN
MEASURABLE IMPROVEMENTS IN OUR
SERVICES TO CALIFORNIA'S
WORKERS. I ALSO WANT TO
ACKNOWLEDGE THE EXTRAORDINARY
STAFF AT THE EMPLOYMENT
DEVELOPMENT DEPARTMENT WHO
CONTINUE TO SERVE OUR CUSTOMERS
AS THEY NAVIGATE THIS
CHALLENGING TIME. I'M SO
APPRECIATE. OF THEIR DEDICATION
TO THEIR WORK ESPECIALLY AS
THIS PANDEMIC HAS CONTINUED.
BECAUSE CONTINUED ON AND CREATE
ADDITIONAL PRESSURES IN THEIR
LIVES AND THE LIVES OF OUR
CUSTOMERS. I'D BE REMISS IF I
DID NOT THANK THE MEMBERS OF
THE LEGISLATURE AND THEIR STAFF
WHO HAD BEEN A CRITICAL PARTNER
IN RESOLVING CONSTITUENT CLEAN
ISSUES AND SHARING INFORMATION
WITH THE PUBLIC. WITH THAT IN
MY TESTIMONY. THANK YOU
DIRECTOR SIGNS. AND NOW WE MOVE
TO OUR LAST PANEL- MISTER JOHN
LAWLER FROM BANK OF AMERICA.
MADAM CHAIR THAT IT'S BETTER TO
HAVE IT FOR TO BE OF A- IF I IF
I MAY ADDRESS ABOUT HALF OF THE
BANK. I'M SORRY OKAY WAS YOUR
NAME AGAIN. IT SAYS AMIT FROM
BANK OF AMERICA I'LL BE READING
A STATEMENT ON BEHALF OF THE
BANK. OKAY I'M SORRY COULD YOU
TELL ME WHAT WHAT'S YOUR
POSITION AT BANK OF AMERICA.
YES I AM I AM I AM- AND HEAD OF
GLOBAL TRANSACTION SERVICES
WHICH IS THE UNIT OF THE BANK.
THAT IS RESPONSIBLE FOR-
WHOLESALE PAYMENTS AND
LIQUIDITY FOR CORPORATIONS AND
FOR- MUNICIPALS AND-
GOVERNMENTAL ENTITIES. OKAY
OKAY GO AHEAD MR MUCH. THANK
YOU THANK YOU MADAM CHAIR AND
TO THE ASSEMBLED SENATORS FOR
THE OPPORTUNITY TO SPEAK WITH
YOU TODAY AND TO ANSWER
QUESTIONS. I'M JOINED TODAY BY
THE BY MY COLLEAGUE JOHN WALLER.
THE LEADER MUNICIPAL FINANCE
BUSINESS AND OVERSEES THE
CLIENT RELATIONSHIP WITH EDT IN
THE STATE OF CALIFORNIA. ALSO
ABOUT HIS BILL BOX THE HEAD OF
OUR GLOBAL FINANCIAL CRIMES
COMPLIANCE AND OPERATIONAL RISK
TEAM. AND A FORMER DIRECTOR OF
THE FINANCIAL CRIMES
ENFORCEMENT NETWORK. DURING OUR
DISCUSSION WE WILL DO OUR BEST
TO HELP YOU BETTER UNDERSTAND
WHAT WE'RE DOING TO SUPPORT BDD
POLITICALLY MEN'S. AND TO
ADDRESS THE LEVEL OF CRIMINAL
FRAUD THE PROGRAM IS
EXPERIENCING. BANK AMERICA'S
BEEN THE PREPAID DEBIT CARD
PROVIDER FOR THE STATE
UNEMPLOYMENT PROGRAM FOR MORE
THAN A DECADE. WE WERE WORKING
VERY CLOSELY WITH THE EDG TO
DELIVER MUCH NEEDED BENEFITS TO
QUALIFY CALIFORNIANS. WE
APPRECIATE THE OPPORTUNITY WE
HAVE HAD TO ENGAGE DIRECTOR
SANDRA RETIREMENT OFFICE AND
WITH OUR TEAM OVER THE PAST
YEAR TO WORK TOGETHER ON THE
PROGRAM. THE OTHER WITH THE
EIGHTY WE SHARE THE SAME
OBJECTIVES. ENSURING THAT A
VALID CLAIM IS RECEIVED HIGHLY
SUPPORT. AND MINIMIZING AND
MITIGATING THE UNPRECEDENTED
LEVEL OF CRIMINAL FRAUD WE ARE
SEEING TO PROTECT THE PROGRAM.
I WANT TO HIGHLIGHT AN
IMPORTANT POINT. THE CRIMINAL
FRAUD IN THIS PROGRAM IS NOT
UNIQUE TO CALIFORNIA. WHERE THE
SERVICE PROVIDER FOR SEVERAL
OTHER STATES AND BROUGHT IS
CHALLENGING UNEMPLOYMENT
PROGRAMS EVERYWHERE ACROSS THE
COUNTRY. THE SIZE AND SCALE OF
THE CALIFORNIA PROGRAM
ATTRACTED SUBSTANTIAL FRAUD.
INCLUDING CRIMINALS WERE
FRAUDULENTLY ATTEMPTING TO
CLAIM BENEFITS. IT IS OUR
ASSESSMENT THAT THERE IS A
SOPHISTICATED CRIMINAL NETWORKS
INVOLVED IN THIS HAS BEEN
ASSESSED BY OTHER THIRD PARTY
SPECIALISTS AS WELL. AGAINST
THIS BACKDROP WE ARE WORKING
CLOSELY WITH THE EIGHTY D. AND
LAW ENFORCEMENT OFFICIALS TO
MEET THESE CHALLENGES. SINCE
THE PANDEMIC BEGAN WE'VE ISSUED
MORE THAN NINE MILLION DEBIT
CARDS. INVOLVING MORE THAN ONE
HUNDRED BILLION IN BENEFITS FOR
THE CALIFORNIA PROGRAM ON
BEHALF OF THE EDT. WE HAVE A
THOUSANDS OF EMPLOYEES ASSIGNED
TO SUPPORT THE EDT. AND
LEGITIMATE CLAIMANTS AND
BENEFICIARIES. IN RESPONSE TO
THE RECENT CHALLENGES THE
PROGRAM WE'VE CREATED NEW
PROCESSES FOR EXPEDITING
HANDLING FOR CLAIMANTS AND
SHARING INFORMATION WITH DDT
AND THE RELEVANT LAW
ENFORCEMENT AGENCIES ABOUT
FRAUD STRATEGIES. PART OF THE
JOINT RESPONSE HAS BEEN
FREEZING CARDS FOR THEIR
CONCERNS THE LISTED CARDHOLDER
WAS NOT ENTITLED TO
UNEMPLOYMENT BENEFITS AT ALL. I
KNOW WE WILL DISCUSS THAT IN
MORE DETAIL TODAY. BUT WE
BELIEVE THAT THE OVERWHELMING
MAJORITY OF FROZEN ACCOUNTS
REPRESENT FRAUD THAT WERE
STOPPED REPRESENTING HUNDREDS
OF MILLIONS OF DOLLARS. OR MORE
IN CRIMINAL ACTIVITY
POTENTIALLY THE BILLIONS. WE
HAVE A REGULAR ENGAGEMENT WITH
EDT TO UNFREEZE ACCOUNTS WE CAN.
LAST WEEK AND THIS WEEK WE ARE
ACTIVELY DISCUSSING A NEW
APPROACH TO INCREASING CARDS.
OUR WORK ON THAT NEW APPROACH
SHOULD BE COMPLETED VERY SOON.
WE ARE HOPEFUL IT WILL BE MUCH
FASTER AND WAS ABLE US TO
UNFREEZE LEGITIMATE CARDS. EVEN
WITHOUT WAITING FOR A
CARDHOLDER TO CALL. THANK
AMERICA'S TAKEN NUMBER OF STEPS
ON ITS OWN. WE HAVE THE
OBLIGATION TO MITIGATE FRAUD
UNDER VARIOUS FEDERAL
REGULATIONS IN STATUTES AND TO
REPORT SUSPECTED CRIMINAL
ACTIVITIES THE FEDERAL
AUTHORITIES. THE BANK HAS BEEN
ACTIVE IN DOING SO. THROUGHOUT
OUR FOCUS AT BANK OF AMERICA
HAS BEEN SERVING THE LEGITIMATE
UNEMPLOYED BENEFICIARIES AND
MINIMIZING THE IMPACT OF
CRIMINAL FRAUD ON A SIGNIFICANT
SCALE. I KNOW WE SURE THAT
BOGUS WITH EDT. AND WITH ALL OF
YOU. THANK YOU WE'D BE HAPPY TO
TAKE YOUR QUESTIONS. OKAY.
WE'RE GOING TO PROCEED NOW
WITH- QUESTIONS I WILL BEGIN
WITH MY QUESTIONS CALL IN THE
TWO CHAIRS AND THEN THE REST OF
THE MEMBERS- I'M SORRY AND
CENTER NIELSEN THAN THE REST OF
THE MEMBERS OF THE COMMITTEE
STARTING WITH MISTER DALI- GO.
I HAVE A QUESTION FOR ON THE
STATE AUDITOR PLEASE. AND IT
REALLY IS ABOUT THE-
RECOMMENDATIONS IN GENERAL YOU
MADE RECOMMENDATIONS IN TWENTY
ELEVEN TO THE LEGISLATURE- AND
WERE THERE ANY ACTIONS TAKEN BY
THE LEGISLATURE SO I JUST ALL
THROUGHOUT TWO THREE. TWO CAN
GET THE GIST OF WHAT WHERE I'M
COMING FROM- YOU SAID THAT YOU
DID THE HAS ACKNOWLEDGED IT
MUST MAKE IMPROVEMENTS TO ITS-
ADMINISTRATION. AND AGREE TO
IMPLEMENT THE MALL BUT
REALISTICALLY WHAT WILL- MAKE
THOSE RECOMMENDATIONS HAPPEN WE
DON'T WANT FROM TWENTY ELEVEN A
SIMILAR EXPERIENCE SO- IT'S
IMPORTANT AYE RECOMMENDATIONS
BUT WE NEED TO HELP TO MAKE
THEM SUCCESSFUL SO WHAT WILL OF
WHAT CAN YOU DO. TO MAKE SURE
THAT D. D. D. AND THE
LEGISLATURE WHAT'S THE MOST
THAT WE CAN DO TO MAKE SURE
THAT WERE SUCCESSFUL- AND THEN
JUST A FINAL SPECIFIC QUESTION
IS- CAN YOU SHARE HOW EDT
SHOULD ADDRESS THE STAFFING AND
TRAINING TRAINING NEEDS MOVING
FORWARD. THANK YOU SENATOR AND
I MADE THE FIRST AFTER SOME OF
THE ANSWERS BUT IT ANSWER TO
YOUR QUESTION WITH RESPECT TO
WHAT WE DO TO MAKE SURE THAT
EDIE IMPLEMENT STAGE
RECOMMENDATIONS FROM THE MOST
RECENT AUDITS- AS YOU MAY BE
AWARE WE CONDUCTED THIS AUDIT
WORK UNDER. THE LEGISLATIVE
AUDIT COMMITTEE APPROVED A AN
EMERGENCY AUDIT BACK IN
SEPTEMBER OF TWENTY TWENTY ASKS
US TO WAIT UNTIL THE STRIKE
TEAM WAS DONE WITH IT'S WORK
WHICH WE DID AND THEN WE
COMMENCED OUR WORK. BUT WE ALSO
IDENTIFIED- KOVIN. FUNDS CARES
ACT MONEY COMING INTO
CALIFORNIA AS A HIGH RISK ISSUE
SO WHAT THAT ALLOW MY OFFICE TO
DO WAS TO ASSIGN ADDITIONAL
STAFF TO THIS WORK SO THAT WE
CAN DO. VERY BROAD ANALYSIS OF
EDIE'S PROCESSES AND THEIR
FRAUD PREVENTION AND DETECTION
EFFORTS THE REASON I'M
MENTIONING THIS IS THE READ
BECAUSE WE DID SOME OF THIS
WORK UNDER OUR STATE HIGH RISK
AUTHORITY. COMBINED INTO
AUDITS- CERTAINLY AND I WAS
ABLE TO PUT ON. BUT IT'S FROM
DIFFERENT WITH IT VERY STRONG
TEAM TOGETHER BECAUSE WE KNEW
OF THE IMPORTANCE OF THIS WORK.
TYPICALLY WHEN AN ENTITY AN
ODDITY REPOPULATE FIGHTS BACK
TO MY OFFICE IT'S AT THE
INITIAL AUDIT WHICH IS INCLUDED
IN THE IN THE REPORT THAT WAS
ISSUED THE TWO REPORTS. THAT
WERE ISSUE IN LATE JANUARY THAT
WOULD BE A SIXTY DAY WINDOW SIX
MONTHS ONE YEAR. BECAUSE THIS
IS- AS PART OF A STATE HIGH
RISK- ISSUE. COMBINED WITH THE
EMERGENCY AUDIT WE WILL BE
LOOKING FOR RESPONSES FROM EDT
EVERY NINETY DAYS SO THAT'S
GOING TO ALLOW US TO PROVIDE
INFORMATION TO THE PUBLIC TO
PROVIDE INFORMATION TO THE
LEGISLATURE AS TO. HOW WELL EDT
IS DOING AND IMPLEMENTING ALL
THESE RECOMMENDATIONS THAT'S
ONE THING THE SECOND THING IS
AND MANY OF THE RECOMMENDATIONS
AS I MENTIONED- WE SAID YOU
NEED TO DO THESE THINGS
IMMEDIATELY LIKE WORKING WOULD
BE A RADIO IDENTIFY THIS
COMPREHENSIVE LIST OF FROZEN
ACCOUNTS COME UP WITH AN
APPROACH AND NEATLY. AND STARK
I'M FREEZING THESE ACCOUNTS
HOPEFULLY LATER THIS MONTH- AND
HOPEFULLY EDT AND- BANK OF
AMERICA WILL BE ABLE TO DISCUSS
THAT. A LITTLE BIT FURTHER
TODAY WE ALSO HAVE
RECOMMENDATIONS THAT THEY NEED
TO GET DONE BY MARCH THEY NEED
TO GET DONE BY JUNE. SO WE WILL
BE ABLE TO HAVE IN REAL TIME
INFORMATION FOR THE
LEGISLATURE. TO EXERCISE ITS
OVERSIGHT AS IT'S DOING TODAY
AND FOR THE PUBLIC TO
UNDERSTAND YES SPEEDY IS MAKING
PROGRESS OR NO THEY'RE NOT- SO
THAT WE AGAIN. YEAH WITH ALL
DUE RESPECT HE PUT MORE
PRESSURE ON UNITY LET'S GET
SOME OF THESE THINGS
IMPLEMENTED- I THINK THE
ADMINISTRATION IS COMMITTED TO
THAT WE HAVE A GOOD WORKING
RELATIONSHIP WITH THE NEW
DIRECTOR- AND WITH THE NEW.
MANAGEMENT TEAM AT EDG BUT
CERTAINLY WE NEED TO SEE SOME
SOME CHANGE HAPPENING AT EDG
WITH RESPECT TO THE LEGISLATIVE
RECOMMENDATIONS FROM TWENTY
ELEVEN. OFF THE TOP OF MY HEAD
I DON'T KNOW THE ANSWER TO THAT
QUESTION I DON'T KNOW IT LOOKS
LIKE MY STAFF DON'T HAVE THE
ANSWER WE CAN GET THAT BACK TO
THE COMMITTEE. BUT CERTAINLY-
WE FELT THAT SOME OF THEISSUES
WE IDENTIFIED IN OUR REPORT
BACK IN MARCH OF. TWENTY ELEVEN
RELATED TO THE CALL CENTER
RELATED CLAIMS PRESS ASSISTING.
MANY OF THOSE RED. WERE TO. AT
THEY DIDN'T GET A- THEY DIDN'T
GET THE RECESSED PLAN IN PLACE
EVEN THOUGH THEY STARTED
WORKING ON ONE. SO THAT'S WHY
WE FELT THERE WERE A LOT OF.
THINGS THAT EDT NEEDS TO DO
THAT WE FELT IT WAS REALLY
INCUMBENT UPON THE LEGISLATURE
TO GET THESE REQUIREMENTS IN
STATUTE. SO THAT EDT
UNDERSTANDS THE SIGNIFICANCE OF
THIS- AND IT ALLOWS THE
LEGISLATURE TO PROVIDE THAT
ADDITIONAL OVERSIGHT THAT
ADDITIONAL- YOU KNOW. DIRECTION
TO THE ADMINISTRATION THAT
THESE ELEMENTS ARE REALLY
IMPORTANT IT'S REALLY IMPORTANT
TO HAVE A RECESSION PLAN. LET'S
NOT KEEP TALKING ABOUT CROSS
MATCHING WITH INCARCERATED
INDIVIDUALS WITH BEEN HEARING
ABOUT THAT FOR THE LAST THREE
YEARS. LET'S GET IT DONE WE
WANT YOU TO REPORT TO THE
LEGISLATURE- ON HOW EFFECTIVE
THAT CROSS MATCHING IS WORKING
HOW EFFECTIVE THOSE TOOLS ARE
WORKING THEIR REQUIRED
CURRENTLY REPORTS YOU ANNUALLY.
ON FRAUD AND WHAT THEY'VE
ACCOMPLISHED BUT NOT
NECESSARILY ANALYTICS AS FAR
AS- WHICH TOOLS ARE WORKING
BEST. ARE THEY DOING ACROSS
MANAGING HOW MUCH FRAUD HAS
THAT PREVENTED. THOSE SORTS OF
THINGS THAT WE THINK THAT
RECOMMENDATIONS IN THESE TWO
REPORTS ARE VERY STRONG. WE'VE
ALREADY SEEN THE LEGISLATURE.
INTRODUCING NUMEROUS BILLS
WE'VE BEEN GOING THROUGH THE
ANALYSIS THOSE BILLS A LOT OF
THOSE BILLS INCLUDE INFORMATION
FROM ANOTHER AUDIT WE DID LAST
YEAR ON. EDT AND ITS USE OF
FULL SOCIAL SECURITY NUMBERS
AND DOCUMENTS- AS YOU MAY KNOW
WE ISSUED A REPORT IN MARCH OF
TWENTY NINETEEN ON THAT ISSUE
WHERE. ASSEMBLY MEMBER BAKER
ASSEMBLYMEMBER GATO BACK IN
THOSE DAYS HAD CONSTITUENTS
SAYING I DON'T WANT MY FULL
SOCIAL SECURITY NUMBER ON A
DOCUMENT COMING TO ME BECAUSE
OF THAT DOCUMENT ENDS UP GOING
TO A DIFFERENT. LOCATION THAN
MY IDENTITY IS POTENTIALLY
STOLEN AS YOU SAR OR HEARD
ABOUT IN OUR AUDIT REPORTS AND
IT'S BEEN IN THE NEWS. NUMEROUS
DOCUMENTS COMING OUT TO THE
SUSPICIOUS ADDRESSES OR
INDIVIDUALS WHO NEVER FILED FOR
UNEMPLOYMENT INSURANCE GETTING
ALL OF THESE DOCUMENTS AT THEIR
PARTICULAR ADDRESS. IT'S REALLY
INCUMBENT ON EDG TO GET THESE
SSNS TRUNCATED OR TO USE A
UNIQUE IDENTIFIER IS ONE OF OUR
RECOMENDATIONS I KNOW THERE'S
LEGISLATION DIRECTED AT THAT
BECAUSE- WE DID FOLLOW UP WORK
ON THAT MARCH TWENTY NINETEEN
NOT IT. IN LATER IN THAT TWENTY
TWENTY WE SHOULD REPORT
NOVEMBER AND FOUND THE THREE
KEY DOCUMENTS THAT HAD.
MILLIONS OF- MILLIONS GOING TO
END OF. STILL HAD THOSE FULL
SSNS WE IDENTIFIED TEN
DOCUMENTS ANALYZE AND THREE OF
THEM WAS THE LION SHARE OF
THOSE DOCUMENTS ARE GOING OUT
SO IF THEY ADDRESS THOSE THREE.
BE STRATEGIC EIGHTY ONE OF THE
THINGS THAT I THINK IS VERY
IMPORTANT FOR EDG TO GENDER
STAND I THINK THEY DO THE
LEGISLATURE THE PUBLIC
UNDERSTAND EATING NEEDS TO DO A
RISK ASSESSMENT THEY NEED TO
UNDERSTAND. WHERE WE INVEST OUR
RESOURCES WE'RE GONNA WE'RE
GONNA GET THE BEST. RETURN ON
THAT INVESTMENT AS FAR AS- FOR
EXAMPLE THE TWO POINT FOUR
MILLION CLAIMANTS WERE THEIR
ELIGIBILITY DETERMINATIONS WERE
SUSPENDED YOU'VE GOT TWELVE
MILLION ISSUES. YOU NEED TO DO
ONE OF OUR RECOMMENDATIONS YOU
DEEP DO A RISK ASSESSMENT. IT'S
OUR ESTIMATE IS GOING TAKEN
THREE MILLION HOURS TO GET
THROUGH ALL THOSE TWELVE
MILLION ISSUES THEY'RE GOING TO
DO A RISK ASSESSMENT WHICH ONES
OF THOSE ARE THE HIGHEST
POTENTIAL FOR FRAUD. WHAT ARE
THE TYPES OF CLAIMS TYPES OF
ISSUES THAT WE'VE SEEN
HISTORICALLY THAT RESULTED. IN
A CLAIM BEING FRAUDULENT. DO
THAT RISKS SO YOU INVESTING
YOUR REESE. IN THE RIGHT PLACES
AT THE RIGHT TIME. SO WITH
THAT- CENTER THERE ARE SO I
HOPE THAT ANSWERS YOUR
QUESTION. YES AND YOU DON'T
HAVE TO ANSWER THIS. RIGHT NOW
BUT- I AM CONCERNED THAT THERE
ARE OTHER ELEMENTS LIKE THE
FUNDING. THAT WOULD BE
NECESSARY AND HOW TO MOVE
FORWARD OVER THE NEXT SEVERAL
YEARS. THANK YOU VERY MUCH- I
HAVE A COUPLE OF QUESTIONS FOR
YOU TODAY AND THEN I'LL PASS IT
ON. EDT AND TO FOR BANK OF
AMERICA- DIRECTOR SIGNS- YOU
MENTIONED THAT THE- WHAT IS
THE- ACCOUNTS 495% OF THE OF
THE FRAUD CASES. HOW ARE YOU
GOING TO BE DEALING WITH MISS
CLASSIFICATION CASES. GOOD
QUESTION I'M GOING TO HAVE- OUR
CHIEF DEPUTY CARE WILLIAMS.
GIVE YOU ARE ACCURATE. RESPONSE
TO THAT. THANK YOU MADAM CHAIR
SO THAT IS THE THAT IS
DEFINITELY ONE OF THE MORE-
SENSITIVE AND COMPLICATED
ISSUES THAT IS ON OUR PLATE FOR
REVIEW AND FOR PROPER HANDLING
AND- WE CAN PROVIDE A WRITTEN
RESPONSE ON WHAT THAT PLAN IS
IN THE FUTURE BUT WHAT I WILL
SAY PRIMARILY REGARDING ALL OF
OUR DEFERRED WORKLOADS AND-
THAT HAS BEEN DISCUSSED THIS
MORNING BY THE AUDITOR. WE ARE
SO PLEASED THAT WE BROUGHT ON A
CENTER TO WORK WITH US AND THE
RISK ASSESSMENT OF ALL OF THESE
SENSITIVE WORKLOADS DEFERRED
WORKLOADS- WORKLOADS THAT MAY
RESULT IN OVERPAYMENTS IS TOP
OF THE LIST AND WE BEGIN THAT
WORK TOMORROW- ON THOSE
ASSESSMENTS. SO WE CAN FOLLOW
UP WITH YOU THANK YOU OKAY
THANK YOU AND- SECOND DIRECTOR
SIGNS- I'M- ONE AND NO WHAT YOU
CAN. SAY TODAY AND THEN MAYBE
FALL OPEN AND WRITING IS ABOUT
THIS CONTRACT WITH- BANK OF
AMERICA- A LOT OF ISSUES HAVE
BEEN RAISED ABOUT FEES. WELL
WHEN FEES WERE CHARGED WITH A-
YOU KNOW DURING THE TIME THAT
THE ACCOUNTS WERE FROZEN AND
UNFROZEN- SO WHAT CAN YOU TELL
US AND FRANKLY WOULD BE HERE
YOU KNOW REQUEST A COPY OF THAT.
OUR CHAIRMAN IT'S MY
UNDERSTANDING THAT THE
LEGISLATURE HAS BEEN PROVIDED
WITH A COPY OF THE CONTRACT.
BUT WE WOULD BE GLAD TO PROVIDE
ANOTHER COPY OF THE CONTRACT
PROBABLY MORE USEFUL TO YOU
THOUGH IS A SUMMARY OF WHAT THE
CONTRACT INCLUDES AND WE'RE- WE
CAN PROVIDE THAT TEAM NO
PROBLEM. OKAY AND- UP REGARDS
TO A LANGUAGE ACCESS- WHAT CAN
YOU TELL US ABOUT THAT LANGUAGE
ACCESS AND IT MAY BE THAT SOME
INFORMATION WAS PROVIDED- NOT
JUST IN ENGLISH BUT IN SPANISH
BUT THERE ARE OTHER LANGUAGES
SO CAN YOU PLEASE RESPOND TO
THAT- LANGUAGE ACCESS. IS ONE
OF MY TOP PRIORITIES. ARE
SHIFTING DEMANDS OF VARIOUS HAS
GONE ON AN INDIVIDUAL WHO WILL
WORK WITH THE LABOR AGENCY AND
WITH OUR STAFF TO ENSURE THAT
LANGUAGE ACCESS. IS TOP OF THE
LIST OF GETTING GROUP. WE ALSO
HAVE A ANGUAGE TRANSLATION
CONTRACT WHICH WAS. IN MY
JUDGMENT INSUFFICIENT TO THE
DEMANDS OF A BLUE DOT NET AND
SO WE HAVE EXPANDED THE ACTOR
CONTRACT QUITE A BIT. THE OKAY
THANK YOU- AND A COUPLE OF
QUESTIONS FOR A BANK OF AMERICA-
IS CAN YOU. TELL US WHAT YOU'VE
ACTUALLY DONE TO IMPROVE
COMMUNICATIONS AND OF
CORONATION WITH EDT ARE
REGARDING A AFFECTED-
CLAIMANTS- AND- WHAT CAN YOU
TELL US ABOUT YOUR CONTRACT
WITH THEM EDT. YES IT'S-
INSTEAD EFFORT ON BEHALF OF THE
BANK SO. FOR STARTERS WE
CONTINUE TO BE- INCREDIBLY
FOCUSED ON ENSURING THAT
LEGITIMATE CLAIMANTS RECEIVE
THEIR BENEFITS AND WE'VE
INCREASED OUR STAFFING. THAT
BASIS BE CALIFORNIA CONTRACT-
APPROXIMATELY TWENTY PEOPLE
SINCE THE BEGINNING OF THE
PANDEMIC WE HAVE. PROBABLY SIX
THOUSAND PEOPLE WHO ARE NOW
WORKING AT VARIOUS CALL CENTERS
OR IN CLAIMS AND CLAIMS UNITS.
FOCUSED ON THE- CALIFORNIA
CONTRACTED ON. THE ISSUES WE
ARE SEEING WITH THE EDT AND
THAT WE'RE TRYING TO RESOLVE-
THE STABBING WAS MADE WITH THE
GOAL OF ENSURING THAT CLAIMANTS
LEGITIMATE CLAIMANTS HAD THE
OPPORTUNITY. TO HAVE THEIR-
THEIR CLAIMS REVISITED. AND UP-
THEIR FUNDS WITH A RESTORED AND-
USE OF THEIR CARDS ALLOWED AS
QUICKLY AS POSSIBLE. WE NEED
WITH THE EDT WEEKLY- WE HAVE-
AN EXCELLENT PARTNERSHIP WITH
THEM ESPECIALLY WITH DIRECTOR
SIGNS IT ARRIVAL- WE ARE IN
CONSTANT COMMUNICATION A
VARIETY OF TOPICS. AND WE WILL
CONTINUE TO PARTNER WITH EDT-
TO ENSURE THAT WHICH IN
ACCORDANCE TO RECEIVE- THEIR
BENEFITS. I WOULD RESPECT TO
ANY QUESTIONS REGARDING THE
CONTRACT- I WOULD SUGGEST THAT
WE PROVIDE ANY ANSWERS TO WITH
THE EDT IN A JOINT RESPONSE AS
WE BELIEVE THAT LEAVES VOTE
LEAST ROOM. FOR ANY
MISCOMMUNICATION OR ERRORS ARE
ON THE CONTRACT WITH THE D.
OKAY- JUST TO LET YOU THAT I
HAVE MORE SPECIFIC QUESTIONS
WITH REGARDS TO THE CONTRACT-
REVENUES FROM THE FEES SO I
UNDERSTAND THAT YOU'RE SUPPOSED
TO REPORT MONTHLY ON FEES
EARNED. AN AVERAGE REVENUE HAVE
YOU COMPLIED WITH THAT
REQUIREMENT TO- AND- AGAIN
MAKING A COPY OF A REQUEST TO
SUBMIT A COPY OF THE CONTRACT.
PROVIDED TO THIS COMMITTEE.
OKAY SENATOR BETTER YET ALL IF
YOU HAVE ANY QUESTIONS. YES
THANK YOU VERY MUCH MADAM
CHAIR- FIRST LET ME THANK GOD
EVERYONE WHO'S TO STRIKE HERE
TODAY- OBVIOUSLY ARE CRITICAL
CONCERN IS HOW DO WE MOVE
FORWARD- AND WE APPRECIATE THE
CHALLENGE GOING FROM THREE. 3%
UNEMPLOYMENT 216% THAT NO
QUESTION THAT DAM THAT THAT'S
WHAT CREATED THE CHALLENGE- BUT
IT IS AN ISSUE OF HOW TO HOW DO
WE GET OUT OF BED HOW DO WE-
FIX THE SITUATION WHILE WE'RE
FLYING THIS AIRPLANE SO LET ME
START WITH THE- I THINK
DIRECTOR SIGNS I HAVE A COUPLE
OF QUESTIONS FOR YOU. ON LAND-
AND THEN I HAVE A COUPLE
QUESTIONS FOR THE BANK OF
AMERICA I RISK I RECALL HAVING
A CONVERSATION ABOUT- EIGHT
CONTRACT. IN THE FALL HAVING TO
DO WITH THE CALL CENTER AND-
THE EXTENSION OF A CONTRACT
WITH THE LIGHT- AND MY
UNDERSTANDING IS THE LIGHT WAS
GOING TO BE HANDLING OUR CALL
CENTERS. AND AND MIKE THE
REASON I WAS CONCERNED AS I
WANTED TO MAKE SURE THEY WERE
CALIFORNIA RESIDENTS AS AS- AS
MUCH AS WERE LETTING CONTRACTS
GO. ON THAT- PROVIDE JOB
OPPORTUNITIES IF WE'VE GOT AN
UNEMPLOYMENT RATE OF UP NEAR
16% WE SHOULD HIRE. CALIFORNIA
EMPLOYEES BUT- BUT I'M
WONDERING IF YOU COULD TELL US
A LITTLE BIT ABOUT THAT
CONTRACT AND HOW IT HELPED DDD
TO SIGN IT BUT THE GREAT SURGE.
IN CALLS AT THAT OUR OFFICES
RECEIVED AND FRANKLY I GUESS MY
CONCERN IS THAT OUR OFFICES
BECAME THE CALL UNOFFICIAL CALL
CENTERS- FOUR EDT THE GREAT
SURGE HAPPENED IN THE FALL AS I
AS I RECALL THERE THERE WERE.
WAVES ON AND I'M TRYING TO
FIGURE OUT WE SPENT A LOT OF
MONEY ON THAT CONTRACT WHAT DID
WE GET FOR IT. THE ANSWER
THAT'S AN EXCELLENT QUESTION.
AND I THINK AT THIS POINT I
NEED TO PUT OF THE CALLS IN THE
CALL CENTER INTO SOME
PERSPECTIVE. INTO A CONTEXT. WE
ARE RECEIVING THREE TO FOUR
MILLION CALLS A WEEK. THERE IS
NO WAY FOR MY EXPERIENCE WITH
CALL CENTERS AT A CALL CENTER
IS GOING TO RESPOND TO THAT
TYPE OF VOLUME. IT NEEDS TO BE
SUPPLEMENTED AS PARTNERS ONE OF
THE THINGS THAT THE AUDITOR
BROUGHT UP. IMPROVED WEBSITE
COMMUNICATION MORE
COMMUNICATION FROM OF EDG SELF
SERVICE OPTIONS WORKABLE SELF
SERVICE OPTIONS. BECAUSE I WAS
NOT HERE DURING THE EXTENSION
OF THE JULY CONTRACT I'M GOING
TO GIVE THAT TO ONE OF MY CHIEF
DEPUTIES TO RESPOND. TO THANK
YOU SENATOR CAROL WILLIAMS. MY
UNDERSTANDING OF THE EXTENSION
OF THE CONTRACT PROVIDED AND
HAS PROVIDED FROM A BELIEVE THE
BEGINNING WHICH WAS THE FALL.
AN AUGMENTATION OF FIVE HUNDRED
EMPLOYEES CLEARLY CLEARLY NOT
ENOUGH AND THOSE COMPLAINTS
WERE PUT AT THE FRONT END OF
THE CONTACT CENTER TO ANSWER
CALLS. DIRECT CLAIMANTS WERE TO
GO HOW TO FILE CLAIMS AND THAT
NATURE. THE OH MY GOODNESS OKAY
JUST FORGOT THE QUESTION BUT
THE- CONTRACT- THAT'S WHAT WAS
THANK YOU THE CONTRACT
PREVIOUSLY DID NOT EXCLUSIVELY
SAY A CALIFORNIA BASED
EMPLOYEES ONLY THIS EXTENSION
THAT WE'RE IN NOW ABSOLUTELY
DOES AND ANY CONTRACTS FORD
WILL STIPULATE CALIFORNIA BASED
EMPLOYEES. THANK YOU. SO IT
SOUNDS TO ME LIKE THE PURPOSE
OF THE CALL CENTER WAS JUST
BASICALLY DIRECT PEOPLE HAD IT
FILE A CLEAN AND NOT
NECESSARILY TO ANSWER ANY
QUESTIONS THEY MAY HAVE IN
REGARDS TO THE CLAIMS. MOST
THANK YOU SENATOR CAROL
WILLIAMS. THEY CERTAINLY. CAN
TAKE THE CALL UP TO A POINT AND
THIS ALLOWED US TO RESUME AS
YOU'RE PROBABLY AWARE THE
STRIKE TEAM RECOMMENDED THAT-
ASK EDT TO STOP HIRING BUT THE
MOST EXPENSIVE- MOST A
EXPERIENCE THE STAFF- ON THOSE
PHONES INSTEAD OF HELPING NEW
HIRES. IN TRAINING CLASSES AND
THAT IS CERTAINLY EDT RESPONDED
IN DOING SO BUT IT CREATED A
GAP CREATED A GAP AND TALENT IN
TRAINING RECRUITING AND HIRING
AND- AS OF NOW WE HAVE FULLY-
FULLY RESUMED ALL OF THOSE
COMPONENTS- ANTICIPATING.
VACANCIES AND HIRING AND
TRAINING AND SO ON AND SO FORTH
AND SPEAKING OF TRAINING- THAT
MOST EXPERIENCE LEVELS THE EPR
LEVEL OF OUR STAFF THAT
BASICALLY CAN DO EVERYTHING AND
IT HAS BEEN DISCUSSED THAT
TRAINING WAS UPWARDS OF NINE
ONE SIX MONTHS. IT HAS BEEN
PARED DOWN NOW TO THIRTEEN
WEEKS OF EXTENSIVE TRAINING
THEY'RE ALLOWED TO COMPLETE
TRAINING IN THIRTEEN WEEKS
IMMEDIATELY BE OF HIGH VALUE TO
CLIENTS AND CERTAINLY NATURALLY
OVER TIME THERE IS CONTINUE
TRAINING ON THE JOB KNOWLEDGE
BUT- THAT WAS A STRONG STRIKE
TEAM RECOMMENDATION THAT HAS
PROVIDED. A GREAT BENEFITS AS
WE'VE BEEN ABLE TO HIRE. ONLY
RISEN HIRING LATE OCTOBER
NOVEMBER THOSE FOLKS ARE NOW ON
THE PHONE AND AS DIRECTOR
SCIENCE. EXPLAINED WE HAVE NINE
HUNDRED FOLKS JOINING NOW
THROUGH. MARCH. TO PROVIDE
ASSISTANCE TO CLIENTS. THANK
YOU FOR THAT RISK IN- THE OTHER
THING THAT MAY WANT TO THINK
ABOUT IS HOW TO MAKE THE SYSTEM
WORK. HELLO HOW TO MAKE THE
SYSTEM SIMPLER. BECAUSE THE
SYSTEM IS EXTREMELY COMPLICATED
AND THAT'S THE REASON IT
REQUIRES A THIRTEEN WEEK-
BEFORE WITHIN NINE MONTHS A
TRAINING PROGRAM. I APPRECIATE
THE COMPLEXITY OF THE OF THE
SYSTEM BUT I. I THINK PART OF
THE CHALLENGES FOR US TO FIGURE
OUT IF THERE'S A SIMPLE WAY TO
DO IT. THANK YOU FOR THAT
ANSWER THE OTHER QUESTION I
HAVE IS THE AUDITOR. REPORTS
THAT THE AUTOMATION RATE OF 90%
WAS ACHIEVED- THE END OF
NOVEMBER TWENTY TWENTY THANKS
TO THE AMPLE PIC IMPLEMENTATION
TOOL CALLED I. DIED ME. AND
DATA. MOSTRI CALLS THAT MY
OFFICE RECEIVED IN THE LAST TWO
MONTHS FROM CONSTITUENTS. WE'RE
HAVING PROBLEMS WITH THE ID DOT
ME A FREE FEATURE WITH THE NAY
IT WAS UNABLE TO VERIFY. THE
IDENTITY OF THE INDIVIDUAL OR
THERE WAS A NEED TO VERIFY THE
IDENTITY MORE THAN ONCE A DAY
REPEATEDLY. BOB WHAT'S THE
CURRENT AUTOMATION RATE AND
THEN WHAT. IT SEEMS TO ME THAT
THE SYSTEM IS NOT FUNCTIONING
AS IT WAS. INTENDED AND IS
THERE A SOLUTION FOR IT. OF
CENTERS COVERING INTERNALLY
START THE RESPONSE BY SAYING
THAT WE ARE. CONTINUALLY
REVIEWING THE EFFECTIVENESS OF
EACH OF OUR CONTRACTORS. I AM
IN REGULAR CONTACT WITH THEM AS
SOON AS SAID CHIEF DEPUTY
TWENTY FIRST. WHO IS A
MONITORING. THE SITUATION ONE
OF THE REASONS WHY WE HIRED
ACCENTURE- BECAUSE WE WANT TO
REVIEW. ALL OF OUR FRAUD
MECHANISMS BECAUSE WE TO HAVE
HEARD THAT SOME OF THESE THINGS
ARE NOT WORKING FOR THE MOST
PART- WE'RE REALLY
CONCENTRATING ON WHAT'S
HAPPENING AND EDG. AND I KNOW
THAT- SHOULD JEOPARDY VARIOUS
HAS BEEN IN CONTACT WITH THE
CEO OF I DO ME AND THEY'RE
WORKING OUT SOLUTIONS THAT'S A.
SENATOR NATIVE WITH EIGHTY DE-
THAT THAT IS TRUE WE ARE IN
CONSTANT CONTACT WITH ID ME-
DATE I TO ANSWER YOUR FIRST
QUESTION I BELIEVE THAT THE
AUTOMATION RATE IS STILL AROUND
90% I DON'T HAVE THE EXACT.
NUMBER OFF THE TOP OF MY HEAD
BUT IT'S NOT IT'S NOT NINETY
IT'S VERY CLOSE TO THAT I DON'T
THINK THAT HAS- THAT HAS
CHANGED MUCH THEY HAVE BEEN A
GREAT PARTNER. FOR US- AS FAR
AS IDENTITY VERIFICATION THERE
IS IF THERE IS THERE IS-
THERE'S TWO THINGS THAT I CAN
SAY ABOUT- IT MANAGER IDENTITY
VERIFICATION THE FIRST IS THAT
IF THEY HAVE A PROBLEM GOING TO
THE WEBSITE ITSELF THERE IS A
TRUSTED REFEREE. THAT IS
AVAILABLE- THROUGH ID NEED A
CURRENT WAIT TIME I JUST GOT
THIS MORNING IS EIGHT MINUTES
IT WAS LONGER- AT SOME POINT
BUT THEY'VE HIRED A BUNCH OF
PEOPLE THEY UNDERSTAND. YOU
KNOW CALIFORNIA HAS A LARGE
URBAN POPULATION. TRYING TO GET
THROUGH ON THE SECOND PIECE OF
THAT IS THAT IF THERE IS AN
ISSUE WITH ID ME WE STILL DO
HAVE OUR INTERNAL MANUAL
PROCESS- AT EDT THAT THAT YOU
KNOW PEOPLE- CAN SEND CAN
CERTAINLY GO THROUGH AND. AND
DO GO THROUGH- AT- THIS IS
DIRECTOR SIGNS. LET ME HOLES
RISK. TO THAT. WE ARE NOT
SATISFIED. THE QUALITY OF THE
CALL CENTER SERVICES IN THEIR-
MCCARTNEY THERE ARE THE CALL
CENTER PEOPLE SO THIS IS
SOMETHING THAT IS SO. RIGHT AT
THE TOP HANDLED IF PEOPLE CAN'T
MAKE CONTACT WITH US WE
CONTINUE TO CALL YOU CAN BRING
THEM OF COURSE YOU'RE GOING
CALL THEY'RE DESPERATE. SO
WE'RE WE'RE RE REVIEWING EACH
OF THOSE BUSINESS PROCESSES TO
ENSURE NOW AS SOON AS WE CAN
SIMPLIFY THAT FOR THE CLEAN.
THANK YOU VERY MUCH I GUESS THE
BOMB. MY RESPONSE TO THE ID ME
ISSUE IS THAT WE'VE GOT TO BE
ABLE TO FIGURE OUT FOR THE
INDIVIDUAL THAT'S HAVING
CHALLENGES WITH THE WITH THE
PROGRAM- WE'VE GOT TO FIGURE
OUT A WAY TO BE ABLE TO SEND
THEM TO A TO A ON AN ALERT
SQUATTER WHATEVER WE WANT TO
CALL THEM SO THAT THEY CAN GET
AN ANSWER AS TO EXACTLY WHAT IT
IS IT'S KEEPING THEM FROM BEING
ABLE TO BE VERIFIED AS A- AS A
VALID CLAIM AND- WHAT HAPPENS
IS THEY JUST KEEP RECYCLING
THROUGH THE SYSTEM IN THE SAME
CALL THINGS GET TWELVE OR
THIRTEEN. THOUSAND TIMES FROM
THESE INDIVIDUALS WE GET IN OUR
OFFICES AS WELL SO I APPRECIATE
THAT 90% OR CLOSE TO IT IS
REALLY GOOD BUT IT'S THOSE
OTHER 10% THAT ARE HAVING
PROBLEMS SEEM TO COME BACK INTO
THE SYSTEM WE'VE GOT TO FIGURE
OUT WHY THAT'S HAPPENING AND BE
ABLE TO GIVE THEM SOME HOPE
THAT WE'RE GOING TO RESOLVE IT
AND RESOLVE IT WITHIN THAT TIME
PERIOD BECAUSE THEY'RE FALLING
THROUGH THE CRACKS. CORPORATE
THAT. THANK YOU SENATOR OF
CALIFORNIA THANK THANK YOU AND
THEN NOT COUPLE QUESTIONS FOR
BE A BAY- AT THE CAN- WELL
NUMBER ONE CAN YOU TELL US WHAT
YOU HAVE EARNED PURSUANT TO THE
CONTRACTORS EDT FOR THIS THIS
PAST YEAR. AND- AND IN ADDITION
TO THAT WHAT EXPENSES YOU'VE
UNDERTAKEN THAT WERE
UNANTICIPATED IN THE ORIGINAL
CONTRACT BUT YOU DID IT BECAUSE
IT WAS THE RIGHT THING TO DO SO
WE CAN GET A SENSE OF WHAT
YOU'VE LEARNED AND WHAT. WHAT
THE COSTS HAVE BEEN. YES IT IS
FENCED EVAN FOR THE BANK UP.
YOU KNOW I DON'T HAVE A FULL.
FINANCIAL STABILITY I'D BE
HAPPY TO PROVIDE THOSE NUMBERS
TO YOU BY THE EDT I CAN TELL
YOU THAT ARE- OVERALL THE
PROGRAM IS RUNNING AT A NET
LOSS POSITION TO ANSWER SEVERAL
HUNDRED BILLION- FOR THE- FOR A
VARIETY OF REASONS. THE MAJOR
BEING ON ANTICIPATED STAFFING
COSTS OF ADDING THOUSANDS OF
PEOPLE TO OUR CALL CENTERS AND
TO OUR CLAIMS PROCESSING AND
REVIEW UNITS SO WE HAVE JUST
ABOUT SIX THOUSAND PEOPLE. THE
MAJORITY OF WHOM ARE FOCUSED
ENTIRELY ON THE CALIFORNIA
CONTRACTOR THAT BUILT THOSE
THOSE EXPENSES ARE NOT PASSED
THROUGH TO THE KEY HERE THE
STATE OF CALIFORNIA. THAT WE
DID IT BECAUSE WE FELT IT WAS
THE RIGHT THING TO DO. ON
BEHALF OF THE PROGRAM IN THE
STATE AND LEGITIMATE CLAIMANTS.
WE ALSO WAIVE. THE WHOLE
CATEGORY OF FEES STARTING LAST
SUMMER TO ACTUALLY CARDS- AND-
WE EXPANDED THAT THROUGHOUT THE
PROGRAM. AGAIN BECAUSE WE FELT
THAT WAS THE RIGHT THING TO DO.
AND THEN THE LAST. BUT NOT
LEAST WE HAVE HAD AN EXPERIENCE-
SEVERAL HUNDRED MILLION OF
FRAUD LOSSES DIRECTLY- FROM- A
UNIQUE ELEMENT RELATED TO WITH
THE DEBIT CARD OR PREPAID CARD
PROGRAM. ASSOCIATED WITH-
CLAIMS WHERE- CRIMINALS AND
FRAUD AND CRIMINALS INTENT ON
ON THE FRONT STAFF HAVE CALLED
US CLAIMING TO BE LEGITIMATE
RECIPIENTS OF CLAIMS OF A
BENEFIT OF BENEFITS FROM THE
STATE. AND AS A RESULT OF THAT
WE HAVE WE HAVE WE HAVE MADE.
WHAT ARE CALLED PROVISIONAL
PAYMENTS TO THESE CLAIMANTS
UNDER THE PERSPECTIVE OF THE
WORLD GYM EQUIPMENT AND HAVE
BEEN UNABLE TO THAT AS OF NOW
TO RECOUP THOSE FUNDS BECAUSE
FUNDS ARE BEING SPENT SO
OVERALL. THE PROGRAM IS RUNNING
AT A SIGNIFICANT LOSS AGAIN WE
DON'T MENTION THAT- UNLESS
WE'RE SPECIFICALLY ASKED A
DIRECT QUESTION THAT YOU HAVE
TODAY. AS WE DO FEEL THAT IT
IS- IF IT DOES PALE COMPARED TO
THE COST THE EPIDEMIC- FOR- FOR
SUCCESSFUL FOR CALIFORNIA
RESIDENTS AND LEGITIMATE
CLAIMANTS. I APPRECIATE THAT I
THINK YOU FOR YOUR ANSWER IF
YOU COULD GET US A- RUNNING
LIST MAYBE BY MONTH THAT WOULD
BE THAT WOULD GIVE US A SENSE
OF WHAT'S GOING ON AND- I DO
APPRECIATE THAT YOU'VE THEIR
BANK OF AMERICA HAS BEEN A
PARTNER WITH THE STATE AND IN
TRYING TO MAKE THIS WORK- TO
THE BENEFIT. OF THE UNEMPLOYED
AND SO- BUT THAT BUT I WOULD
LIKE TO SEE- WHAT THAT HAS COST
YOU AS WELL AS WHAT IT'S ON
EARNED YOU IN INCOME AND BY THE
SAME TOKEN WHAT WHAT THE
BENEFIT IS BEEN TO THE STATE OF
CALIFORNIA AS WELL- IT APPEARS
THE TV DOES NOT HAVE A
COMPREHENSIVE LIST OF FROZEN
ACCOUNTS. SO I WANT TO ASK BANK
OF AMERICA IF YOU HAVE A
COMPREHENSIVE LIST. NUMBER ONE
AND ARE YOU WORKING PROACTIVELY
ON THOSE ACCOUNTS TO DETERMINE
WHICH ONES ARE LEGITIMATE. AND
IF AND IF YOU ARE CAN YOU TELL
US HOW MANY CLAIMS HAVE. BEEN
LEGITIMIZED OFF THAT LIST. OKAY
SERVICES. WE DO HAVE A LOOK AT
THE- OF A COMPREHENSIVE LIST
THAT WE DO- SHARE WITH AND RICK
AND IN TURN RECEIVED FEEDBACK
FROM. THE EDT. IT IS CONSTANTLY
MOVING AS YOU CAN IMAGINE WHICH
IS PROBABLY WHY THERE MAY BE
SOME. CONFUSION OVER. OR THE
WAY STATED OVER EXACTLY. WHO IS
ON THE LIST WE HAVE A
COMPREHENSIVE LESSONS. THAT WE
CAN DISCUSS IT WITH BE EASY
REGULARLY AND VICE VERSA- SINCE
THE BEGINNING OF THE EPIDEMIC
ROUGHLY I WILL GIVE YOU SOME
SOME SOME NUMBERS THERE BEING
APPROXIMATELY- FOUR HUNDRED
EIGHTY SEVEN THOUSAND EIGHT
HUNDRED SEVENTY OR SO FROZEN
CARDS OF WHICH- SEVENTY FIVE
THOUSAND. CARDS HAVE NOW BEEN
UNFROZEN- OVERTIME- AND- THAT'S
FOR A VARIETY OF REASONS.
RELATED TO THE DETERMINATION OF
WHO IS AN ALLEGED- WHO IS A
LEGITIMATE BENEFICIARY. CLAIMS
AND SO THAT IS WHERE THE- THE
RESPONSIBILITY IS SPLIT BETWEEN
AUSTIN EDT OR I SHOULD SAY THE
EDT HAS RESPONSIBILITY OF
VERIFYING THAT SOMEONE IS
LEGITIMATE CLAIM IN. WHEN THEY
VERIFY THAT SOME OF THE
DILIGENT CLAIM AND THEY
DIRECTED TO US. AND WE RUN THAT
PERSON- BY A DIFFERENT CRIMINAL
DATABASES WE HAVE JUST ENSURE
THAT THEY'RE NOT TRIGGERING ANY
CRIMINAL DATABASES THAT IF THAT
CHECKS OUT THEN. THE CARD IS
UNFROZEN IN BETWEEN TWENTY FOUR
HOURS AND FORTY EIGHT HOURS
THAT'S THE PROCESS. SO I'M
SORRY I MISSPOKE ABOUT
SOMETHING IMPROPERLY. FIFTY
FIVE THOUSAND CARDS HAVE BEEN
UNFROZEN. SINCE THAT SINCE LAST
SUMMER. AND- THAT IS BETWEEN
EDT IN OURSELVES MAJORITY AT
THE BEHEST BDK. SO IT JUST SO I
UNDERSTAND IT EDT IS THE ONE
THAT IS VERIFYING WHETHER THE
COUNTY SHOULD BE FROZEN OR NOT
FROZEN. IT'S NOT THE BANKS WITH
YOU'RE NOT DOING IT YOURSELF
INDEPENDENTLY. THERE ARE TWO
CATEGORIES OF- FREEZES ONE IT
THAT THE LARGEST AS HAS BEEN
DESCRIBED EARLIER WAS WAS WAS
DONE AT THE DIRECTION OF THE
EDT. IN EARLY OCTOBER. AND THEN
THERE IS A SECOND LARGE BATCH
OF THE DIRECTION OF THE EDT IN
DECEMBER. AND THERE'S A THIRD
CATCHER THAT I WOULD PUT THAT
INTO ONE CATEGORY AND THERE'S A
THIRD THE SECOND CATEGORY OF
CARS THAT ARE FROZEN BY US. AT
THE REQUEST OF OR IN
PARTNERSHIP WITH. LAW
ENFORCEMENT AND RESPOND FORCING
NETWORKS- I WOULD ACTUALLY BY
MY COLLEAGUE- BILL BOX WHO- IS
RESPONSIBLE FOR GLOBAL
FINANCIAL CRIMES IN COMPLIANCE
AS WELL AS- THE FORMER DIRECTOR
OF INCENTIVES TO STOP THAT
PROCESS IS THAT WOULD PROBABLY
BE HELPFUL TO. YOUR QUESTION.
BILL SURE THANK YOU- I THINK I
THINK THAT'S A CORRECTLY THAT
THAT PERSON GREEN WE'VE
INCREASED CARDS WILL NEED OR
ACCESS TO ONE OF THE HELPERS
THAT THEY NEED THE TERM
CARDHOLDERS ARE. ENTITLED TO BE
ABLE OR OR ELEGY FOR AN ENCORE
A PRO PROGRAM- NEED TO BE- I
TELL THAT ARE FROZEN BY THE
EXERCISE OF OUR RESPONSE ON
REQUIRED R. FOR ARE PRO AND TO
BRING CRIME SO WE CALL WITH WE
ACTUALLY HAVE A- SMALL NUMBER
DON'T HAVE THE HAND. I DON'T
KNOW IF YOU DO BUT I I'VE I'M
RELATIVELY SMALL OF CLOUD WE
HAVE. AND WE DON'T HAVE WE HAVE
COME ACROSS THEM FROM. IN THE
OF OUR- TO OUR- OVERSIGHT OF
THE THAT THAT IS JUST IN THE OF
CRIME. AND WE WANT THAT HAVE WE
WILL FREEZE. OR COME IN I GET
OUT OF IN A SMALL SET- BUT-
CORRECTIVE. WE WILL FREEZE
BECAUSE WITH. ONE FOR EITHER A
IS A WITH WITHIN. THAT WOULD BE
A- OF QATAR WITH EVEN AS MORE
POURING WHERE WHERE THEY WILL
WANT TO- TAKE ACTS AGAINST THE-
CARD OR- FOR SERIES OF CARDS.
SO THAT NO WOULD BE TO RE. THAT
WE FREE- ON OUR OWN- AND. AND-
SB DANCE ANY ABOUT THAT BUT I
CAN. SO IF YOU IF YOU RECEIVE
IN FROM LINE FOR YOU YOU'D
GENERALLY WOULD IS WE UNTIL I'M-
CLEARS IT UP ONE WAY OR ANOTHER.
YES YEAH IT WOULD BE A LONG
COURSE OF WELL. ONE PORCELAIN
PALACE EITHER YOU KNOW THE
ESSAY APPROACHES WITH FOR
EXAMPLE IS PETER MARK THAT
THAT'S AND- THAT'S PRETTY
INDICATIVE OF. GOING TO SEE
THAT ACCOUNT RIGHT IN THAT
WOULD THAT WOULD PUT THAT ICON
IN DISTASTE. VERY GOOD THANK
YOU VERY MUCH FOR YOUR
TESTIMONY THEY APPRECIATED
THANK YOU MADAM CHAIR. THANK
YOU CENTER CABALLERO BEFORE WE
MOVE ON I WAS INFORMED THAT-
BANK OF AMERICA MAY BE LEAVING
THE LINE BUT SOMEBODY MAY BE
STAYING COULD YOU CLARIFY THAT
FOR US BECAUSE WE WOULD REALLY.
I'M SURE HAVE A LOT OF
QUESTIONS FOR YOU. OKAY BUT
WE'RE WE'RE WE'RE ALL STILL
ALIVE RIGHT NOW. OKAY AND YOUR
QUESTIONS OKAY WONDERFUL THANK
YOU- WE- CENTER CORTEZ A- THANK
YOU MANAGER- FOR THE AUDITOR.
FIRST OF ALL THANK YOU VERY
MUCH FOR A FOR YOUR WORK A
COMPREHENSIVE WORK- I HAVE A
QUESTION IF YOU WERE.
RECOUNTING OF THE
RECOMMENDATIONS. IN IN I'VE AT
LEAST GOTTEN AS FAR AS READING
OF THE SUMMARIES OF YOUR
RECOMMENDATIONS AND THEN OF
COURSE ISN'T YOUR PRESENTATION
TODAY SO EXCUSE ME IF I HAVE.
NOT BUT YET RUN ACROSS- ALL THE
DETAIL THAT- THE MIGHT BE
REFLECTED IN IN SOME OF MY
QUESTIONS- REGARDING WERE
STATUTORY CHANGE IS NEEDED. I
BELIEVE IT WAS UNDER THAT
CATEGORY THAT YOU TALKED ABOUT.
AND EVERY THREE YEAR
REASSESSMENT. GIVEN THE AND I
CAN I CAN ACCEPT IN EVERY THREE
YEAR REASSESSMENT WITH SOME
SORT OF SCOPE TO IT. HELLO HAS
THERE BEEN ANY THOUGHT OR
ANALYSIS ON YOUR PART- IS TO
EASE SENSUALLY SETTING UP SHOP.
IN EDT- WITH ONGOING ARMY
PRACTICES LIKE YOU WOULD SEE IN
A TYPICALLY IN IN THE BANKING
INDUSTRY AND OBVIOUSLY THE IRS
DOES THAT I DROVE IT'S OBVIOUS
BUT IT'S- SOMEWHAT COMMON
PRACTICE FOR- INTERNAL REVENUE
TO SET UP. A IN OUR LARGEST SO
C. CORPORATIONS- ONGOING AUDIT
PRACTICES LITERALLY. ON SITE.
IN GIVEN THE HISTORY WITH EDT
OF. LACK OF CORRECTION
ACCEPTANCE OF RECOMMENDATIONS
IN THE PAST IS UNDERSTANDABLE
LACK OF ACTUAL CORRECTION- I
GUESS PARDON ME IF I'M- A
LITTLE CONCERNED BE NEW HERE TO
THE STATE SENATE AS TO. WHETHER
OR NOT THAT PATTERN IS GOING TO
CONTINUE AND THAT'S NO
REFLECTION ON THE CURRENT
DIRECTOR BUT PERHAPS A LARGER
SYSTEMIC PROBLEM OF FROM
WORRIED ABOUT. THE IDEA OF.
ONGOING CAPACITY WHICH WOULD
MEAN ON ANY GIVEN DAY- A TWENTY
YEAR AUDITORS ARE AN OUTSIDE
AUDITOR EITHER ON THE
MANAGEMENT AUDIT SIDE OR ON THE
FINANCIAL SIDE- OF THE COULD
DIVE IN IN- VERIFY THAT
RECOMMENDATIONS ARE BEING
ENACTED OR THAT OF FRAUD OR
OTHER FISCAL YEARS ISSUES ARE
ARE TAKING PLACE- THAT WOULD
HARM THE TAXPAYERS OF THE STATE
OF CALIFORNIA. WITH RESPECT TO
YOUR QUESTION ABOUT US BEING
EMBEDDED AND EDG WE HADN'T
CONTEMPLATED THAT AS THE
EXTERNAL INDEPENDENT AUDITOR IN
CALIFORNIA. WE WE'VE NOT DONE
THAT- TYPICALLY WILL BE
AUDITING AND DEPARTMENT AT THE
DIRECTION OF THE LEGISLATURE
EITHER THROUGH STATUTE OR
THROUGH THE JOINT LEGISLATIVE
AUDIT COMMITTEE AS THEY THE
AUDIT THAT WAS APPROVED ON AN
EMERGENCY BASIS LAST FALL.
THAT'S HOW THAT WORKS CAME TO
US WITH RESPECT TO ONGOING-
MONITORING OF EIGHTY WE
CERTAINLY WILL CONTINUE TO DO
THAT AS I MENTIONED IN MY
OPENING COMMENTS OR MY
TESTIMONY THAT EVERY NINETY
DAYS WE WILL BE EXPECTING A
STATUS REPORT FOR ME D. D. R.
AND THAT WILL CONTINUE- FOR. AT
LEAST A YEAR IF NOT LONGER THAN
THAT- BUT HOPEFULLY A LOT OF
THESE RECOMMENDATIONS AS WE'VE
PUT SPECIFIC MILESTONES IN
THEM. WILL GET IMPLEMENTED IN
THE NEXT SEVERAL MONTHS WE
EXPECT SOME IMMEDIATELY LIKE I
REFER TO BE OF A GETTING THAT
COMPREHENSIVE LIST- MAKING SURE
THAT THEY'RE WORKING. BOERO
MENTIONED- SOME CONCERNS WITH
ID ME NOW WE HAVE A
RECOMMENDATION BECAUSE WE DID
IDENTIFIES IT WAS ABOUT A
HUNDRED FORTY FOUR THOUSAND
CLAIMANTS. WHO WERE HAVING
DIFFICULTY VERIFYING THEIR
IDENTITY AND YOU KNOW WERE
WERE- POTENTIALLY LEGITIMATE
CLAIMANTS SO THERE ARE
INDIVIDUALS GETTING CAUGHT UP
IN THE I. D. ME AND- GETTING
KICKED OVER TO THE MANUAL
PROCESS. BUT WE WOULD HAVE BACK
TO YOUR QUESTION WE HAVE THAT
NINETY DAY WINDOW WHERE WE WILL
CONSISTENTLY EXPECT TO HEAR
FROM EDT WILL ASSESS WHAT
THEY'RE TELLING US. WHY HAVE
THE STATUTORY AUTHORITY TO BE
ABLE TO GO BACK IN AND DO
FOLLOW UP WORK WE TYPICALLY
WAIT TO GIVE AN AGENCY AN
OPPORTUNITY TO IMPLEMENT
RECOMMENDATIONS- WE CERTAINLY
CAN PARTNER WITH THE
LEGISLATURE OVER THE COURSE OF
THE NEXT. NINE MONTHS WHERE.
THE MAJORITY OF THE
RECOMMENDATIONS NEED TO BE
IMPLEMENTED. WITH RESPECT TO
THE THREE YEAR- ASSESSMENT AS
YOU INDICATED THAT IS REALLY
RELATED TO THE RECESSION PLAN-
THE FIRST PART OF THAT
RECOMMENDATION IS. IF THE
LEGISLATURE DOES PUT IN STATUTE
THAT A RECESSION PLAN A
COMPREHENSIVE PLAN IS REQUIRED
WE SUGGESTED CERTAIN ELEMENTS
THAT SHOULD BE INCLUDED IN THAT
PLAN LIKE. LOOKING AT YOUR
PROCESS IS LOOKING AT YOUR
STAFFING. TO ALLOW FLEXIBILITY
TO RESPOND TO A SURGE IN THE
EVENT WE'RE- IN A RECESSION.
BUT THEN EVERY THREE YEARS
THEREAFTER THE REASON WE
THOUGHT THREE YEARS WAS
REASONABLE IS BECAUSE WHEN WE
LOOKED AT THE CYCLE OF
RECESSION IT'S FIVE AND A HALF
TO SIX YEARS. THE OTHER ISSUE
THAT YOU. ASKED ABOUT AS FAR AS
YOU KNOW AN AUDITOR EMBEDDED IN
THE ADMINISTRATION SIMILAR TO
THE FEDERAL ADMINISTRATION- OR
I WOULD ASSUME PRIVATE SECTOR
NEVER WORKED IN THE PRIVATE
SECTOR SO I DON'T KNOW BUT I
KNOW CERTAINLY PRIVATE SECTOR.
FIRMS HAVE INTERNAL AUDITORS
AUDITORS WHO ARE REPORTING TO
THE BOARD OF REPORTING TO THE
CEO- AND CONDUCTING AUDIT WORK
AT THAT PARTICULAR FIRM OR AT.
CORPORATION THE FEDERAL LEVEL
FEDERAL GOVERNMENT FEDERAL I
FEDERAL AGENCIES HAVE INTERNAL
AUDITORS A. LOT OF STATE
AGENCIES IN CALIFORNIA HAVE IN
TURN ORDERS- EACH. BACK IN THE
DAY- I WAS DOING WORK IN THE
FIELD. HAVE THEIR OWN IN TURN
AUDIT SHOP WERE THEY WOULD BE.
REPORTING TO THE DIRECTOR OR IN
MAY BE REPORTING TO THE AGENCY
SECRETARY IF THAT'S NECESSARY.
IN CONDUCTING AUDITS WHERE THEY
HAVE THE INDEPENDENCE AND THE
ABILITY REPORT EXTERNAL TO THAT
PARTICULAR PROGRAM THAT THEY'RE
AUDITING THAT'S WHAT'S
CRITICALLY IMPORTANT. IN ORDER
TO AN INTERNAL AUDITOR
SHOULDN'T BE REPORTING TO A
PROGRAM MANAGER BECAUSE THAT.
GRAHAM MANAGER PUT CAN
INFLUENCE THE HONORED THE
AUDITOR NEEDS TO HAVE AS MUCH
INDEPENDENCE ARE ACTING AS AN
INTERNAL AUDITOR THE OTHER-
JUST FOR YOUR INFORMATION. THE
ADMINISTRATION HAS AN AUTO SHOP
WITHIN THE DEPARTMENT OF
FINANCE AND THAT BROUGHT IT OUR
GROUP DOES GO OUT TO DIFFERENT
STATE AGENCIES AND AUDIT THEM I
KNOW THEY'VE BEEN DOING SOME
WORK UNDER THEIR CARES ACT IN
LOOKING AT. HOW READY AND HOW
PREPARED A STATE AGENCIES HAVE
BEEN TO ADMINISTER PROGRAMS
WITHIN THEIR RESPECTIVE
DEPARTMENTS AS FAR AS MAKING
SURE WERE ADMINISTERING THE
FEDERAL MONEY COMING INTO
CALIFORNIA APPROPRIATELY SO
THERE ARE OPTIONS FOR THE
ADMINISTRATION TO HAVE THEIR
OWN INTERNAL AUDIT WORK DONE.
CERTAINLY MY OFFICE WILL
CONTINUE TO EXERCISE OUR
OVERSIGHT AND OUR
RESPONSIBILITIES BY REVIEWING
WHAT EDT IS REPORTING TO US AS
FAR AS THEIR PROGRESS IN
IMPLEMENTING RECOMMENDATIONS
AND THEN WE WOULD CERTAINLY.
BRING ANY CONCERNS- TO THE
LEGISLATURE'S ATTENTION AND WE
PUBLISH ALL OF THAT INFORMATION
ON. OUR WEBSITE SO THE PUBLIC
WOULD KNOW AS WELL. JUST FOR
FUN THANK YOU- FOR ALL THOSE
THOUGHTS AND- YES WAS A HAVE.
ANOTHER PRIVATE EXPERIENCE
INCLUDING BANKING TO KNOW THAT
THE INTERNAL AUDITOR SHOWS UP.
OF BEING AN EMPLOYEE OF THE
ORGANIZATION- WHEN THEY WANT.
UNEXPECTEDLY OFTENTIMES WAITING
AT YOUR DOOR FOR YOU AT EIGHT
O'CLOCK IN THE MORNING WHEN YOU
SHOW UP IN THE MORNING- IN MY
EXPERIENCE- WITHOUT WAS A WORKS
PRETTY WELL TO STAY ON TOP OF
THINGS. OF IT BUT- I KNOW YOU
UNDERSTAND- ALL THE JUST-
EXPLAIN WHAT SOME OF THE
OPTIONS ARE. IS THERE ANY LEGAL
OBSTACLE TO HAVING YOUR SHOP-
BE EMBEDDED EITHER SHORT TERM
OR LONG TERM IN A STATE AGENCY
LIKE ADD OR IN A COVERT ROLLOUT
HOME LIKE WILL BE EMBARKING ON
SOON WITH A CD. WITH LANDLORD
TENANT I KNOW YOU HAVE BEEN
CHARGED WITH LOOKING AT THAT
WERE. WE'RE NOT DISCUSSING THAT
PER SE TODAY WAS HOLDING OUT AS
ANOTHER EXAMPLE OF. A MULTI
BILLION DOLLARS WORTH OF COAL
WOULD. RELIEF THAT'S GOING OUT-
EVIDENTLY- AT THIS POINT
WITHOUT ANY INTERNAL. AUDITING
FUNCTION IN BED AND I'M JUST
WANTING TO WHAT EXTENT YOU
HAVE- YOU CAN LEGALLY LEGALLY
BE DEPLOYED THAT WAY A BY THE
LEGISLATURE NUMBER ONE NUMBER
TWO. WHAT KIND OF AUGMENTATION
YOU IN IN TERMS OF CAPACITY.
WELL CERTAINLY THERE ARE THERE
ISN'T REALLY A STATUTORY
IMPEDIMENT TO US CONDUCTING
AUDIT WORK AT ANY STATE AGENCY
IN CALIFORNIA ARE STATUTORY
AUTHORITY. TO CONDUCT AUDITS OF
ANY PUBLICLY CREATED AND SEE
ANY STATE AGENCY WE HAVE THE
ABILITY TO GET IN. WE WOULD
NEED TO DO THAT AT THE
DIRECTION OF THE LEGISLATURE
EITHER THROUGH THE JOINT
LEGISLATIVE AUDIT COMMITTEE OR
THROUGH A STATUTORY
REQUIREMENT. NOW THERE ARE SOME
STATUTORY REQUIREMENTS- THAT MY
OFFICE HAVE TO COMPLETE EXAMPLE
IS AND JUST MUCH SMALLER SCALE
BUT WE ARE AT THE STATE BAR
EVERY TWO YEARS THE LEGISLATURE
CHOSE TO PUT THAT IN STATUTE-
AND REQUIRE US TO LOOK AT
DIFFERENT. ASPECTS OF THE STATE
BAR'S FUNCTION SOME YEARS WE
LOOK AT THEIR DISCOMFORT SAYS
OTHER YEARS WE LOOK AT OTHER
ISSUES- WITH RESPECT THE STATE
BAR SO THE LEGISLATURE COULD
CERTAINLY PUTS A REQUIREMENT
IN. STATUE FOR MY OFFICE TO
CONTINUE TO CONDUCT AUDITS
IMMEDIATELY WHERE WE HAVE TO BE
CAREFUL- IS. OUR STANDARD ARE
STATUTES REQUIRES ARE ENABLING
STATUTE REQUIRES US TO FOLLOW
GENERALLY ACCEPTED GOVERNMENT
AUDITING STANDARDS WE HAVE TO
BE ANINDEPENDENT NONPARTISAN
ENTITY. THAT'S TO FILL SOME
REQUIREMENTS THE FEDERAL
GOVERNMENT ASK IS MY OFFICE IS
RESPONSIBLEFOR. AUDITING
FEDERAL MONEY THAT COMES IN THE
CALIFORNIA ON AN ANNUAL BASIS.
AND AS I INDICATED A FEW
INUTES AGO UNDER OUR STATE
HIGH RISK AUTHORITY WE
DESIGNATED ALL THIS ADDITIONAL
FEDERAL MONEY COMING IN TO
CALIFORNIA UNDER THE CARE IS
ACT AS A HIGH RISK ISSUE THAT
GIVES MY OFFICE THE AUTHORITY.
TO LOOK AT DIFFERENT PROGRAMS
AND WE ACTUALLY HAVE BEEN OUT
AT DIFFERENT STATE AGENCIES
CONDUCTING AUDIT WORK OF KERR'S
ACT MONEY COMING INTO
CALIFORNIAN HOW WELL THOSE
DEPARTMENTS HAVE BEEN
ADMINISTERING THOSE DOLLARS
BILLION DEPARTMENT FINANCE WERE
IN DEPARTMENT PUBLIC HEALTH
RIGHT NOW WE'RE DOING SOME
OTHER ISSUES. SO WE DO HAVE THE
AUTHORITY TO DO THAT WORK WHERE
I'M REFERRING TO AS FAR AS THE
AUDITING STANDARDS WE HAVE TO
MAINTAIN OUR INDEPENDENCE SO WE
CAN'T BE COULD BECOME PART OF
EDT MANAGEMENT AND MAKING
MANAGEMENT DECISIONS FOR EDT.
CERTAINLY CAN DO AN ANALYSIS
LIKE WE DID THE TWO ARTISTS WE
ISSUED THE END OF JANUARY MAKE
RECOMMENDATIONS BUT WE HAVE TO
HAVE THAT INDEPENDENCE SO THAT
WE CAN CONTINUE. TO MONITOR AND
CRITIQUE WHAT EIGHTY OR ANY
STATE AGENCY THAT WERE
AUDITING- IS DOING TO MOVE
FORWARD. BUT CERTAINLY IF IT'S
SOMETHING THE LEGISLATURES
INTERESTED IN HAVING MY OFFICE
DO- IT WOULD HAVE TO EITHER GO
THROUGHTHE GENTLEST OF AUDIT
COMMITTEE. OR THROUGH I STYLE
SIX THAT WOULD NEED TO BE IN
STATUTE. IF THE LEGISLATURE
WANTED US TO BE. EMBEDDED IN
THE D. ESSENTIALLY. THANK YOU
VERY MUCH OF THE NIGHT A. A.
PRECIADO IF NOT ALL OF THE-
INDEPENDENCE IN THE GAP
REQUIREMENTS UNDERSTAND HE
WOULD. HAVE TO CONTINUE TO
REPORT DIRECTLY THE LEGISLATURE
AS I UNDERSTAND IT I THANK YOU
FOR THOSE ANSWERS- VERY
ENLIGHTENING I HAVE ANOTHER
QUESTION IN AND I THINK THIS
WOULD WILL BE FREE FOR YOU-
MISS OIL I JUST I DON'T KNOW IF
IT WOULD BE AT THE OUTSET YOU
TALKED ABOUT- BEEN STOPPING AND
TURNING OUT OF THAT ATTORNEYS
HERE. BUT ON THE FROZEN
ACCOUNTS AND I'M WONDERING.
WHETHER OR NOT THERE'S
POTENTIAL LIABILITY THERE- TO
THE CITY CALIFORNIA- TO THE
BANK OF AMERICA- YOU KNOW TO
ANYBODY WHO'S A PARTY TO THAT
ARRANGEMENT- YOU KNOW GET
ESPECIALLY GIVEN THE LENGTHY
TIME IT'S TAKING TO RELEASE-
ESSENTIALLY THOSE FREEZES OF
THOSE FINANCIAL CONSTRAINTS-
NEW EITHER UNDER. CONVERSION
THEORY OR ORDER ESSENTIALLY-
CONSTRUCTIVE- EMINENT DOMAIN
THEORY OR ANY OTHER THREE WITH
THE GOVERNMENTS INVOLVED OR
PRIVATE SECTOR AND HE'S
INVOLVED IN GOING IN AND
LOCKING UP THE PRIVATE
SECTOR'S. PERSONS AN INDIVIDUAL
AS AN INNER CITY SINCE- RIGHT
TO THEIR OWN PROPERTY IN- I
WONDER IF YOU CAN ANSWER THAT
AND IF SO. IT WOULD BE POSSIBLE
TO GET A MORE THOROUGH ANALYSIS
ON THE- I DO HAVE COUNCIL
AVAILABLE TO ANSWER THAT TO
ASSIST IN ANSWERING THAT
QUESTION. WE DIDN'T DO WAY A
DETAILED ANALYSIS OF THE BMA
CONTRACT WE CERTAINLY WERE
AWARE THE CONTRACT WE LOOK AT
THAT FOR YOU FROM THE
PERSPECTIVE OF YEAH BFA
CONTRACTING WITH THE STATE OF
CALIFORNIA WAS EIGHTY TO MANAGE
THE BENEFIT CARDS AND THE FACT
THAT WE SAW SO MANY ACCOUNTS
BEING FROZEN. AND ARE OUR
CONCERNS WITH ADD NOT WORKING
WITH TO BE A DAY- AS
EFFICIENTLY AND EFFECTIVELY AS
THEY COULD TO MAKE SURE THAT
LEGITIMATE CLAIMANTS ACCOUNTS
WERE UNFROZEN AS QUICKLY AS
POSSIBLE AS I SAID AS OF
DECEMBER THERE WERE ABOUT
SEVENTY FIVE HUNDRED ACCOUNTS
THAT HAVE BEEN ON FROZEN OUT OF
THE THREE HUNDRED FORTY FOUR
THOUSAND THAT WE WERE AWARE OF-
I WILL DEFER TO MY ASSOCIATE
CHIEF COUNSEL HEATHER KENDRICK.
I DON'T KNOW IF WE WOULD HAVE
AN ANSWER TO THAT QUESTION BUT
I CERTAINLY WILL GIVE HER THE
OPPORTUNITY. TO PROVIDE ANY
ADDITIONAL INFORMATION. THANK
YOU. HELLO BUT A LOT OF
CORRECTLY DID NOT LOOK DIRECTLY
THAT ISSUE AND SO WE DON'T HAVE
A AN ANSWER I DO KNOW THAT-
BANKING INSTITUTIONS HAVE AN
OBLIGATION TO FOLLOW FEDERAL
LAWS REGARDING SECURITY AND
FRAUD AND MAKING SURE TO
MINIMIZE AND IF THEY DETECT
FRAUD THEY HAVE TO TAKE ACTION-
I'M ALSO AWARE THAT THERE IS A
CLASS ACTION LAWSUIT THAT HAS
BEEN BROUGHT AGAINST MAKE
AMERICAN EDT- AROUND THESE
ISSUES. SO I CAN'T SPEAK TO
WHETHER A PARTICULAR INDIVIDUAL
HAS A SPECIFIC CAUSE OF ACTION
THAT THEY CAN BRING BUT- THAT
IS WHERE WE ARE ON THE SIDE.
YOU THINK YOU JUST TO FOLLOW
UPS ONE COULD YOU- GET US
MEANING THAT THIS COMMITTEE OF
IF NOT THE ENTIRE- LEGISLATURE-
ON. A POTENTIAL LIABILITY OF ON
THOSE FROZEN ACCOUNTS. LET ME-
LET ME TO THE SECOND QUESTION
IS SO I DON'T HAVE TO HOLD YOU
UP IN THAT IS DO WE HAVE A
WATER RIGHTS FROM THE BANK OF
AMERICA CONTRA. YES WE DO
ABSOLUTELY UNDER GOVERNMENT
CODE EIGHTY FIVE FORTY SIX
POINT SEVEN WE HAVE THE RIGHT
TO AUDIT. ANY CONTRACT IN THE
PERFORMANCE OF A CONTRACT THAT
INVOLVES. TEN THOUSAND DOLLARS
OR MORE PUBLIC FUNDS INSTEAD
CALIFORNIA. IN IN WITH
ALTADENA. THE BANK OF AMERICA
CONTRACT REQUIRE. A SEPARATE
ACTION. BY THE AUDIT COMMITTEE
THE LEGISLATURE JOINDOTA
COMMITTEE. BEYOND WHAT'S BEEN
TAKEN AS FAR. I'M NOT GO AHEAD
YEAH I I'DLIKE TO GO AHEAD
HEATHER I'M SORRY GO AHEAD NO I
BELIEVE YES IT WOULD REQUIRE A
J. LIKE TO. INSTIGATE THAT
ACTION UNLESS IT WOULD FALL
WITHIN OUR STATE HIGH RISK AND
I DON'T KNOW THAT WE HAVE TO
FIND THIS CONTRACTORS STATE
HIGH RISK BUT I DEFERRED TO.
MADAM AUDITOR. SHE'S RIGHT I'M
SORRY I GUESS AND A NEED TO-
REMINDED ME I WAS JUST REMINDED
THAT WE HAVE TO LEAVE THESE
CHAMBERS AT TWELVE. WE HAVE TO
WHICH INCLUDES THE REMAINDER OF
OUR SENATORS AS WELL AS PUBLIC
COMMENTS SO- JUST A REMINDER
THANK YOU. CAN JUST ABOUT
WRAPPED UP AND I'M SURE THANK
YOU- FOR THE REMINDER IN THE
TIME CHECK- I MET AGAIN HAPPY
TO TAKE THAT. INFORMATION YOU
KNOW IN WRITING OFFLINE
PARTICULARLY. SO BECAUSE IT'S A
BEING LEGAL IN NATURE HAVING TO
DO WITH. POTENTIAL LIABILITY
MAY BE BETTER IF THAT'S OF
PRESENTED TO US IN. A PRIVILEGE
DOCUMENT ALL THAT COUNTS WILL
MAKE THAT DETERMINATION- I
WASN'T CLEAR AS TO WHETHER OR
NOT I GOT A YES OR NO ON. ON
GETTING THE SAID INFORMATION-
AFTER TODAY. SENATOR WE CAN GET
YOU INFORMATION WITH RESPECT TO
OUR STATUTORY AUTHORITY AND
AUDITING CONTRACTS AS- MISS
KENDRICK INDICATED IN SOME
CASES IT HAS TO GO THROUGH THE
JOINT LEGISLATIVE AUDIT
COMMITTEE IT'S MY BELIEF AND
WILL WILL CLARIFY AND GET YOU
THE CORRECT INFORMATION THAT
AND IN SOME CONTRACT LANGUAGE
THE ENTITY HAS TO ASK US TO
AUDIT THAT PARTICULAR CONTRACT
ON BEHALF THE STATE CALIFORNIA
BUT WILL WE WILL WE'LL GET THE
CLEAR INFORMATION FOR YOU. THE
OTHER SUGGESTION THAT I HAVE
FOR YOU WITH RESPECT TO- AND AN
ANALYSIS OF THE STATE BANK OF
AMERICA CONTRACT FROM A LEGAL
PERSPECTIVE AND LIABILITY IS
YOUR LEGISLATIVE COUNCIL THERE
IS THE ATTORNEYS FOR THE
LEGISLATURE AND THEY CERTAINLY
WOULD. BE IN A BETTER POSITION
WITH ALL DUE RESPECT TO MY
LEGAL TEAM WHICH ARE FANTASTIC
TO WORK DIRECTLY WITH THE
LEGISLATURE TO BE ABLE TO
ANSWER YOUR QUESTIONS IN MORE
REAL TIME THAN HAVING TO GO
THROUGH THE AUDIT COMMITTEE
DIRECTING US TO DO WORK WE'RE
HAPPY TO DO THAT. BUT I THINK
THERE MAY BE SOME QUESTIONS
THAT YOU AND PERHAPS OUR
COLLEAGUES HAVE WITH RESPECT TO
THE B. OF A CONTRACT FROM A
LEGAL PERSPECTIVE THAT YOU'RE
LEGISLATIVE COUNCIL WOULD BE-
SWELTER WELL ABLE. TO ANSWER
THOSE QUESTIONS FOR YOU AND
ALSO THE YOUR LEGISLATIVE
COUNCIL WILL BE ABLE TO PRESENT
THAT INFORMATION TO YOU IN A
PRIVILEGED. AWAY AS- WHERE WE
COULD NOT. WE SHOULD THANK YOU-
IN HIM I THOUGHT. HERE JUST OF-
FOR MY OWN BONE BALL IF YOU
WERE IS TO. LET'S COUNT MAY
NEED. THE BENEFIT OF AN AUDIT
OF THE BE OF A CONTRACT IN
ORDER TO GIVE US THE KIND OF
THROUGH LEGAL OPINION AS TO THE
FLOW OF LIABILITY WEATHER'S
BETWEEN THE STATE BANK OF
AMERICA THE STATE AND BANK OF
AMERICA AS TO THE- THE- THE
INDIVIDUALS AND THEIR ACCOUNTS
FROZEN AT CETERA'S. ABOUT YOU
GIVE ME ENOUGH INFORMATION TO
FOLLOW UP ON THAT. TODAY THE
ONLY OTHER. QUESTION I HAVE IN
IT'S REALLY A COMMON IN AGAIN
OF JUST S. I'VE ALREADY TAKEN
THIS UP WITH EDT- IN OF THE
PREVIOUS BRIEFING AND- VACANT-
THE AUDITOR JUST. FOR A QUICK-
LIGHTNING ROUND OF THOUGHTS
HERE SO I CAN GET OFF THE FLOOR
IN THAT IS WITH REGARD TO
STANDING UP THE CALL CENTER WE-
HEARD THE NINE HUNDRED PEOPLE
ARE ARE GOING TO BE HIRED- IT
SOUNDS LIKE. IN THIS COMMAND
CENTER CALL CENTER IT WOULDN'T
BE SCHEDULED TO BE UP AND
RUNNING UNTIL MAY- THAT'S HARD
TO SWALLOW. FOR US I THINK AND
I SPEAK I THINK I SPEAK ON
BEHALF OF OTHERS IN THE
LEGISLATURE BUT ARE ALSO GONNA
BE EVEN HARDER TO SWALLOW FOR
PEOPLE WHO ARE. AWAITING THAT
CAN HELP- IT WAS THERE ANY
ANALYSIS OR DISCUSSION IN THE
SHORT TERM AUDIT.
RECOMMENDATIONS TO AT LEAST
STANDING UP. A CALL CENTER THAT
CAN SERVICE CUSTOMER SERVICE TO
LET PEOPLE KNOW- WHERE TO GO-
WHETHER OR NOT SOMEBODY WILL BE
GETTING BACK TO THEM. WHETHER
OR NOT THERE ARE THERE'S
TECHNICAL ASSISTANCE AVAILABLE
TO THEM ELSEWHERE. WHETHER OR
NOT THEY SHOULD BE GOING TO A
WEBSITE- TO FILE A CLAIM OR TO
APPEAL THE CLAIM- WE'RE AT THIS
POINT IT SOUNDS LIKE. AND UNTIL
MAY AND I UNDERSTAND THE CALL
VOLUME I HEARD THAT NUMBER. BUT
MOST THE PEOPLE MANY OF THE
PEOPLE HERE- HAVE RUN CAMPAIGNS-
OUTSIDE OF THIS BUILDING. WERE
WERE MILLIONS AND OF CALL HAVE.
MADE AND RECEIVED ON A REGULAR
BASIS WITH CONTRACTED OUT CALL
CENTERS- M. JUST WONDER IF
ANYTHING LIKE THAT WAS WHOSE.
LOOK AT LEAST UP TILL NOW- I
CAN'T ANSWER THAT QUESTION- AT
LEAST A LITTLE BIT AND TEN
PERHAPS- MISTER HARRIS WHO IS
THE AUDIT MANAGER ON THE
PROJECT CAN EXPAND ON THAT BUT
THERE WERE SOME THINGS WE
IDENTIFIED IN THE AUDIT REPORT.
WITH RESPECT TO THEIR PHONE
SYSTEM THEIR VIRTUAL CONTACT
CENTERS- IT WHICH ALLOWS THEIR
CALL CENTER FOLKS TO WORK
REMOTELY WHICH WAS IMPORTANT OF
COURSE IN THE PANDEMIC WHAT WE
NOTICED ABOUT THE CALL CENTER
AND THE FUNCTIONALITY OF THE
PHONE SYSTEM. IS WHEN THEY
IMPLEMENTED A NEW FOR THE C. C.
AS THEY REFER TO THE VIRTUAL
CONTACT CENTER- THEY LOST SOME
FEATURES THAT THEY HAVE HAD IN
THEIR PREVIOUS CALL CENTER
WHICH ARE REALLY IMPORTANT
FEATURES ONE IS A CALL BACK
OPTION YOU CAN LEAVE YOUR
NUMBER AND- SOMEONE WILL END UP
CON CALLING YOU BACK AND
GETTING BACK TO YOU. TO TRY TO
ANSWER YOUR QUESTIONS THE OTHER
I TOUCHED ON A LITTLE BIT IN MY
IN MY PRESENTATION WHICH IS
TRACKING THE TYPES OF QUESTIONS
THAT CALL CENTERS ARE
RESPONDING TO AND PUTTING
TOGETHER FREQUENTLY ASKED
QUESTIONS INFORMATION ON THEIR
WEBSITE. THE OTHER ISSUE THAT
WE IDENTIFIED IN THE REPORT
WHICH IS CONSUMING A LOT OF
RESOURCES IN MEDIAS IN THE PAST
THEY HAD PRE RECORDED MESSAGES
AS PART OF THEIR CALL CENTERS
PART OF THEIR FUNCTIONALITY NOW
INDIVIDUALS AT EDT OR HAVING TO
READ THOSE PRE RECORDED.
MESSAGES AND INFORMATION SO IF
THEY CAN REESTABLISH
PRERECORDED MESSAGES WHERE I
GET INTO. THE SYSTEM AND YOU
KNOW THERE'S A MENU THAT SAYS
IF YOU HAVE THIS TYPE OF
QUESTION PRESS ONE ETCETERA OR
IF YOU WANNA. LEAVE YOUR NAME
AND NUMBER WHERE YOU WILL GET A
CALL BACK SO THERE ARE
DIFFERENT OPTIONS THAT ARE
AVAILABLE TO EDT NOW THAT THEY
SHOULD IMPLEMENT ALSO THAT
THEIR CALL- ON CENTER IS. IS
EVEN MORE EFFICIENT THAN IT IS
NOW. THANK YOU THIS IS.
DIRECTORS AND ALSO LIKE RESPOND
TO THAT QUESTION. SO I WANT
CLEAR PERHAPS ON I WAS NOT
CLEARING. WE ARE NOW WAITING.
TO MAKE IMPROVEMENTS IN THE
CALL CENTER. WE'RE LOOKING AT
DOING THAT EVERY SINGLE DAY. I
WAKE UP WITH THAT THOUGHT I GO
TO SLEEP WITH THAT THOUGHT
INSERTED MY EXECUTIVE TEAM AND
THE OTHER DEPUTIES. SO YES THAT
IS THE TARGET THAT WAS
SUGGESTED BY THE AUDITOR. AND-
WE SHOULD HAVE MORE COMPLETE
IMPROVEMENTS BY THAT TIME BUT
WE ARE LOOKING EVERY DAY TO
MAKE SURE THAT FEATURES THAT
WILL BENEFIT THE CLAIMANTS ARE
GOING TO BE ADDED TO THE SYSTEM.
THANK YOU LESS COMING THROUGH
THE CHILDREN WE JUST LET ME
JUST SAY IT WAS WE HAD TO MAKE
IT SHORT PLEASE AND I WILL WE
HAVE THIS CONVERSATION- BUT IN
A PRIOR BRIEFING- WITH MY
OFFICE. UNTIL SAY A PUBLICLY
LISTED A CALIFORNIA- TOLL ARE
COUNTY WHERE I WAS UNTIL
DECEMBER FIFTH OF LAST YEAR IS
COUNTY SUPERVISOR THAT WE HAD
TO STAND UP A CONTACT RACING
PROGRAM IMMEDIATELY. OF WE
DIDN'T WAIT FOUR MONTHS OR FIVE
MONTHS TO HIRE PEOPLE OF WE
MOVE PEOPLE AROUND AND PUT NINE
HUNDRED CONTACT RESEARCH
TOGETHER. OF VIRTUALLY
OVERNIGHT- THREE SIMPLE MEET
AND CONFER ANIMAL USE WITH
EXISTING EMPLOYEES WHO WERE
MORE THAN EAGER TO BE HELPFUL
AND BE REASSIGNED TO A PLACE
WHERE THEY CAN ACTUALLY HELP
SOMEBODY THAT'S SUFFERING FROM
THE PANDEMIC. OF IT JUST
STRIKES ME THE NINE HUNDRED
FOLKS YOU'RE LOOKING FOR IN AN
ENTITY MUCH BIGGER THAN A
COUNTY SANTA CLARA THE STATE OF
CALIFORNIA WOULD BE EASY ENOUGH
TO FIND AND REASSIGNED. INTO IT
HARD FOR ME TO IMAGINE THAT OUR
OUR OUR UNIONS OUR COLLECTIVE
BARGAINING AGREEMENTS WOULD
WOULD GET IN THE WAY OF THAT
KIND OF. OF VERY VERY IMPORTANT
RELIEF WORK SO I THINK THERE'S
A BETTER WAY THAT'S WHAT I'M
TRYING TO TELL YOU AND I THINK
THERE'S GONNA BE A BETTER WAY
THAN WAITING UNTIL MAY.
TWENTIETH FOR MAY OF TWENTY
TWENTY ONE OF MAY OF THIS YEAR-
IT'S NOT IT'S NOT GONNA WORK
I'M JUST TELLING YOU IT'S NOT
GONNA. WORK THANK YOU THANK YOU.
I I'D LIKE TO I'D LIKE TO
RESPOND THAT. I WONDER ASSURE.
THE SENATE. YEAH WE HAVE DONE
THAT THE- WE HAVE THREE PEOPLE
ANSWERING THE PHONES THIS NINE
HUNDRED IS AN ADDITION TO THAT-
OBVIOUSLY. WAITING UNTIL- A
DISTANCE OF PERIOD WOULD BE UP.
A TRAVESTY SO WE ARE INCREASING
WE HAVE MOVED PEOPLE FROM
DIFFERENT PLACES IN THE
DEPARTMENT TO DO THAT JUST AS
THE SENATOR SO- CLEARLY
SUGGESTED WE DO. THANK YOU
THANK YOU VERY MUCH- WE HAVE-
LINED UP HERE SENATOR NIELSEN
SENATOR DOLLY SAID EARLY MULLIN
SENATOR PORTANTINO. SENATOR MEN
SENATOR OR CHIRLA BOTH. SO OKAY
AND THEN WE MOVE ON TO PUBLIC
COMMENT THANK YOU ALL CENTER
NIELSEN. THEN PRESIDENT RONALD
KIND OF SHORTEN MY INQUIRIES SO
THAT THERE ARE MANY AND THEY
WILL NOT ALL BE ANSWERED TODAY-
THE DIRECTOR ST. IT TRAINING
HAS BEEN SPOKEN TO BUT MY
UNDERSTANDING AND EVEN WHAT YOU
HAVE HEARD TODAY. WHEN THE
TRAINING ISN'T GOING TO BE
AFFECTED ON NEW INDIVIDUALS
THEN TAT MEANS EXISTING PEOPLE
WHO ARE. SENIOR IN POSITIONS
ARE THEN BECOMING THE TRAINERS.
BACKS UP THE JOB THAT IS NOT
GETTING DONE FOR THEIR VACANCY
A POSITION. THAT'S A GREAT
QUESTION AND WE RAN INTO THAT
PROBLEM. IN IN THE MIDDLE OF
THE PANDEMIC UNFOLD STRIKE
TEAMS RECOMMENDATION THAT ARE
PEOPLE BEING MOVED BACK SO THAT
THEY COULD BE EFFECTIVELY
WORKING WITH CLIENTS DIRECTLY.
WHAT WE'RE DOING NOW IS.
EXPANDING OUR TRAINING TEAM AND
I WANT TO MAKE SOMETHING UP TO
PEOPLE HAVEN'T WORK WITH CALL
CENTERS BEHIND THE SCENES. ONE
OF THE MOST EFFECTIVE ELEMENTS
OF AN EFFECTIVE CALL CENTER. IS
TO HAVE SCREENS AVAILABLE. TO
THE PEOPLE WHO ARE RESPONDING
TO CALLS THAT PROVIDE
SUFFICIENT INFORMATION. SO THAT
A MAXIMUM AMOUNT OF INFORMATION
CAN BE GIVEN IN A SINGLE CALL.
THAT'S ONE OF THE THINGS THAT
WE'VE INITIATED WE HAVE A NEW.
TOOL TO LOOK AT THAT I AM
PERSONALLY GOING TO BE WORKING
WITH THE TEAM TO ENSURE THAT AS
MUCH OF THAT HAS BEEN EXPANDED
AS POSSIBLE. WE HAVE
INFORMATION FROM TRAINING
MANUALS. GEN FROM CLEMENT.
INSURANCE LETTERS SO IT'S ONE
OF THE REASONS THAT WERE ABLE
TO TRUNCATE THE TRADING. THIS
IS GOING TO BE IMPORTANT TOOL
IN RESPONDING TO THE CLAIM.
IT'S A BASIC STANDARD INDUSTRY
PRACTICE. AND THAT IS GOING TO
HELP SO PEOPLE WILL NOT NEED AS
MUCH TRAINING AS THEY'VE GOTTEN
THE PAST WILL NEED TO BE
TRAINED TO USE THE SYSTEM.
FORMER DIRECTORS. OF YOUR
DEPARTMENT. WELL NOT NAME BUT
THEY HAVE BEEN ACCUSED OF.
REALLY NOT BEING FORTHRIGHT. TO
THE PUBLIC. I ASSURE HIGH HOPE
YOU AREN'T SURE THAT THEY'LL BE
MUCH MORE CANDOR NOW. AND
SUNLIGHT ON WHAT'S GOING ON IN
THIS WHOLE PROCESS. AND AGAIN I
WILL NOTE THAT THE CALLS HAVE
HARDLY DIMINISHED INTO OUR
OFFICES AT LEAST. THE ONES THAT
I HAVE. AND SO THAT'S MY
BENCHMARK FOR PROGRESS. AND
THAT'S NOT GOOD IT'S STILL NOT
GOOD FOR A LAUGH YES I'VE BEEN
THERE FOR A MONTH. WE ARE
MAKING CHANGES. WE'RE GOING TO
ACCELERATE ANY OF THOSE CHANGES
THAT WE CAN REGARDING
TRANSPARENCY AND HONESTY ANYONE
WHO HAS WORKED WITH ME OVER THE
LAST FORTY YEARS CAN TELL YOU.
I AM A BIG FAN OF TRANSPARENCY.
AND IT HAS TO BE ACCURATE SO
I'M NOT HERE. TO THERE'S NO
POINT THAT I CAN TAKE THIS JOB
BECAUSE I THOUGHT IT WAS GOING
TO BE A CAKE WALK. I TOOK THIS
JOB BECAUSE I KNEW THAT THERE
WERE THINGS THAT COULD BE DONE.
BASED ON MY FORTY YEARS AS AN
EXECUTIVE. WELL I DON'T BELIEVE
IN POSTURING. SO THAT YOU WILL
GET THE BOTTOM LINE TRUTH FOR
ME I PROMISE YOU. I COMPLEMENT
TO THE IN INDEED AND- YOU WILL
BE MAYBE A LITTLE BIT TOO RARE
IN MY EXPERIENCE IN GOVERNMENT.
ARE THESE COULD LEASE CONTRACTS
AND I UNDERSTAND BY FORMER.
ASSURANCES HERE THAT THEY ARE
AVAILABLE TO MEMBERS OF THE
LEGISLATURE TO REVIEW THESE
CONDO LOTS CONTRACTED TO BE OF
A CONTRACT. ABSOLUTELY OKAY
FINE YOU'RE WELCOME TO THEM. WE
WILL CALL AND GIVE YOU A WAY I
HAVE NOT SEEN ONE YET BUT- WILL
BOOK CALLED TO TRY TO GET A
LOOK IN THE CONTRACT AT THE
DIRECTOR SAINTS. ARE THEIR
SANCTIONS FOR FAILURE TO
DELIVER. UNDER THE TERMS OF THE
CONTRACT DO THOSE CONTRACTING
LIKE DISLIKE OR VIA THEY DO
THEY HAVE TO. HAVE A PENALTY OR.
WHAT WILL BE THE SANCTIONS
AGAINST THEM. THE THEY DID
LETTER CHIEF. YES THAT. GROUPS
SENATOR NEED TERRACE WITH EDT-
YOU KNOW I DON'T KNOW I WOULD I
WOULD THATEACH CON. IS
DIFFERENT AND I KNOW BEST OF
THE LAWYER IN BANK OF AMERICA
SO I WOULD HAVE TO GET BACK TO
YOU ON THAT. I WOULD LIKE TO
KNOW THAT BECAUSE THIS IS A
MUCH GREATER ISSUE. THAN JUST
THIS ONE. KAYS'S CAL. FOR BILL
AND- OF DOLLARS ON TECH.
EQUIPMENT UPGRADES TRAININGS
MANY MANY COMPANIES. AND WE
NEVER GET IT RIGHT. THEY ALL I
SHOULD BURN. THE CREDIBLE
EXPERIENCE. AND I DO NOT KNOW
HOW WE CAN CLAIM TO BE THE TECH
CAPITAL OF THE WORLD WHEN WE
CAN'T EVEN GET ANY APPLICATIONS
IN MAJOR STATE GOVERNMENT
AGENCIES. TO WORK. HAS MY FRONT
STATION AND LACK OF CONFIDENCE
IN WHATEVER WE'RE TRYING TO DO
THAT. TECHNOLOGICALLY OVERHEAD
LET ME JUST CLOSE BY SAYING
THAT. THE CITIZENS ARE FED UP.
IT GOES TO THE ADMINISTRATION
AT ALL LEVELS AND EVEN THE
NEAREST TO THE FACT OF THE
LEGISLATURE NOT PROVIDING
SUFFICIENT OVERSIGHT. THE TIME
IS NOW FOR ME WE ARE DONE WITH
THESE FUN AND GAMES THE SOLAR
GREEN OUR CITIZENS. THANK YOU
SENATOR NELSON SENATOR DOLLY.
THANK YOU TO ALL THREE CHAIRS
THIS IS WHAT WE'VE BEEN NEEDING
FOR TEN MONTHS. THE LEGISLATURE
ACTUALLY ENGAGED IN WHAT'S
HAPPENING SO I WANTED PERSONAL
I WANT TO THANK THE AUDITOR I
THINK YOU REPORT IS SPOT ON. I
THINK WE ARE MISSING- A COUPLE
OF THINGS I WANT TO MENTION- SO
I'M A BUSINESS OWNER AND I
ACTUALLY WE PAY IN THIS IS A
TWO WAY STREET THERE'S THE
OTHER I'VE NOT HEARD ONE THING
ABOUT BUSINESS OWNERS. WE PAY
IN SO THAT WHEN THERE IS
UNEMPLOYMENT WHEN SOMEBODY'S
UNEMPLOYED THERE IS A FUN THERE
FOR THEM TO DRAW THE MONEY OUT
OF. SO I THINK THAT THEY'RE IN
IT YES OBVIOUSLY COVERT HAS
CAUSED A PROBLEM BECAUSE- THE
FEDERAL GOVERNMENT GOT
INVOLVED. NUMBER ONE WE SHOULD
PUT IN THIS- I THINK THE TO BE
ADDED TO THE AUDITOR'S REPORT
THAT WE SHOULD ALWAYS HAVE THE
EMPLOYER ENGAGED. IN THE
PROCESS BECAUSE- YOU WON'T HAVE
AS MANY FRAUDULENT CLAIMS IF
THE EMPLOYERS ARE RATIFYING
THAT THEY'RE ACTUALLY
UNEMPLOYED. WHAT HAPPENED
DURING COLBERT WAS WE HAD THE
FEDERAL GOVERNMENT ENGAGE. MANY
BUSINESSES SMALL BUSINESS I'M
I'M MAINLY TALKING ABOUT SMALL
BUSINESSES HERE. PEOPLE WITH
LESS THAN TEN EMPLOYEES LIKE
MYSELF. THERE'S NO ABILITY FOR
THE BUSINESS OWNER UNDER THIS
SCENARIO TO GET INTO THE SYSTEM
AND ACTUALLY SAY YES OR NO IF
THEY'RE UNEMPLOYED YOU WOULD
HAVE ELIMINATION. OF A LOT OF
FRAUD IF YOU HAD THE BUSINESS
OWNERS YOU CAN'T DRAW
UNEMPLOYMENT LEISURE ACTUALLY.
UNEMPLOYED NOW WE ALLOWED
BUSINESSES SMALL BUSINESSES TO
CLAIM AS WELL SO THERE NEEDS TO
BE A TAB SOMEWHERE IN THE
SYSTEM FOR BUSINESS OWNERS WHO
HAVE NEVER FILED FOR THESE
FUNDS BEFORE TO BE ABLE TO
ACCESS THEM SO THAT'S- A
SUGGESTION. FROM SOMEBODY WHO'S
IN BUSINESS AND NUMBER- THE
OTHER THING I WANTED TO ALSO
MENTION IS THAT. UP TO THE BANK.
BANKING SYSTEM THIS IS COMING I
DON'T KNOW HOW MANY OF YOU
YOU'RE AWESOME BOB DOLE WAS ALL
OF US HAVE HUNDREDS OF CASES
OPEN WE HAVE PEOPLE WHO ARE.
TALKING ABOUT TAKING THEIR
LIVES ARE SO DISTRAUGHT IF THIS
IS THE MOST. UNBEARABLE
SITUATION AS A LEGISLATURE I'VE
EVER BEEN IN TRYING TO HELP OUR
CONSTITUENTS. TEN NINETY NINES
SO THERE ARE MANY- CONSTITUENTS
IN CALIFORNIA WHO HAVE. GOTTEN
FRAUD BECAUSE THEY SOMEBODY GOT
THEIR OWN OF THEIR SOCIAL
SECURITY NUMBER AND OTHER
GETTING A TEN NINETY NINE. IN
MOST CASES THEY NEVER USED
RECEIVE A TWO NINE NINE BECAUSE
THEY PROBABLY WEREN'T SILVA
BORDER CAR OR ON CONTRACTED.
AND THEY'RE GOOD THEY'RE GOING
TO BE. TAXED UPON THIS MONEY
AND THAT THEY DIDN'T EVEN GET.
SO I WANT TO THE I KNOW THE
BANK HAS. TO GIVE THAT
INFORMATION TO. THE FEDS
SENTENCED THEM TO TEN NINETY
NINE SO I WOULD LIKE TO COMMENT
ON WHAT WE'RE GONNA BE DOING
ABOUT THAT TSUNAMI THAT'S
COMINGAS WELL. HI MY AND SO MY
FIRST QUESTION IS CAN WE ADD
TO- BUSINESSES INTO THIS
PROCESS I THINK THE- THE NEW
DIRECTOR. I NEED TO BE TALKING
TO BUSINESSES BECAUSE IT'S A
TWO WAY STREET. NUMBER TWO IS
THE TEN NINETY NINES AND THEN
NUMBER THREE- QUESTION NUMBER
THREE AND I DON'T KNOW WHO
WANTS TO FILL THESE BUT- YOU
KNOW TO TAKE THIRTEEN WEEKS OF
TRAINING WHAT WHAT IS THE SHORT
TERM PLAN- FOR OUR CONSTITUENTS
WHO ARE. HAVE BEEN WITHOUT
UNEMPLOYMENT FOR- FIVE WEEKS.
I'D BE GLAD TO RESPOND TO SOME
OF THOSE QUESTIONS. IN THE
FIRST PLACE OUR WE ARE WE HAVE
TO UP OF THREE PERSON CALL TEN
NINETY NINE CENTER. ALSO WE
HAVE BEEN- NOTIFYING PEOPLE AND
WE WILL CONTINUE TO NOTIFY THEM
BY TEXT BY EMAIL. OR BY ANY
OTHER MEANS ARE TO WORK WITH
THEM IF THEY DISCOVER THAT A
TEN NINETY NINE HAS COME TO
THEM THAT IS. NOT
REPRESENTATIVE OF ANY ANYTHING
IN REALITY- BASICALLY THAT THEY
DID NOT GET BENEFITS AND NOW
pNINETY NINE. THAT SENSE THAT
THE- SO WE HAVE A SISTER IN
PLACE ALREADY NO THAT THIS
COMING OUR AND DINNER AND IT ME
JUST HER. THE SENATORS VERY
RIGHT TO BE CAN ABOUT ANOTHER
RESPONSE THAT BUSINESS. YES AND
WHETHER OR NOT HE WERE WITH WE
DO IS ALWAYS WERE WITH NEW IN
SOME BUSINESS. LET ME SAY THAT
I HAVE BEEN A SMALL BIZ PERSON.
I KNOW WHAT IS TO BE. BUT YOU
CAN'T MAKE PAYROLL I KNOW IT IS
TO SET UP SOME THAT YOU. LIFE
THEY WANT TO PASS TO YOU
CHILDREN. I KNOW IT'S LIKE TO
COME TO COVER FOR THAT ONE YOU
TO GET MAKE YOU ONE TO TEAR
YOUR HAIR OUT. SO- I WANT YOU
TO KNOW THAT HIGH. I AM CRYING.
OF DEEPER. THAT ARE SMALL. ARE
EXT. AND THAT DOESN'T MEAN I'M
A KNOW IT ALL ABOUT IT. I
ALWAYS OPEN TO HEARING SMALL
PEOPLE HAVE TO SAY. WELL I LIKE
TO TAKE YOU THOSE CALL- I A AS
A SMALL BIT OWNER WEEK WITH
NEED TO BE OF THE SO AND I TO
SHARE SOMETHING ELSE THAT'S THE
NEXT THING COMING WORK WE'RE
GONNA HAVE ON A FOR A LONG.
MANY BUSINESS ARE OUT OF THE-
AND IN AND ONE THE THINGS GOING
TO HAVE IS- BUSINESSES I PAID
THE MONEY THAT. IS BEING SPENT
RIGHT NOW BUT IN TWO THOUSAND
AND EIGHT WHEN WE HAD THE LAST
GIANT RESECTION. BUSINESSES
WERE ASSESSED MORE FOR THEIR
UNEMPLOYMENT CLAIMS AND IT TOOK
UNTIL TWO THOUSAND SEVENTEEN TO
ACTUALLY. BECOME FULL FLASH
AGAIN AND WE'RE GONNA SEE OVER
A HUNDRED AND FIFTY BILLION
DOLLARS RIGHT NOW THAT'S GOING
TO BE REPAID IS REPAID BY
BUSINESSES. AND THAT'S GOING TO
PUT AN EXTRA BURDEN ON THOSE
BUSINESSES AND IF THEY FAIL
THEN WE HAVE MORE EMPLOYMENT SO
I JUST WANT TO LET YOU KNOW
THAT THERE'S I'M VERY CONCERNED
ABOUT. THE OTHER PARTNER WHICH
IS THE BUSINESS SIDE AND NUMBER
TWO- WHAT'S GOING TO HAPPEN- IN
THE SHORT TERM I THINK YOU I'M
EXCITED I LIKE YOUR **** I
THINK THAT WE NEED THAT AND I
WELL I WANT TO WORK WITH YOU TO
SOLVE THESE PROBLEMS. THIS IS
TIME THAT IT'S FINALLY TIME
WITH THE LEGISLATORS ENGAGE WE
NEED TO PASS LEGISLATION AN OLD
FEET PEOPLE SPEAK TO THE FIRE
IT'S TIME THAT WE AND I'M SO
EXCITED ABOUT THE FACT THAT
IT'S NOT JUST THE- THE
GOVERNOR'S OFFICE RUN IN THIS
AND WE'RE ACTUALLY ENGAGE IT
AND I'M AM I THANK YOU TO THE
CHAIRS. IT'S A MAN TIME. I
WOULD LIKE TO RESPOND TO OF ONE
POINT THAT- THE SENATOR BROUGHT
UP. THE FOR. MY THAT HAS BEEN
SPENT IN THIS SITUATION. AND MY
STAFF CAN CORRECTLY IS NOT
GOING TO FALL TO THE PAVEMENT
BY SMALL BUSINESSES. AT THIS
POINT WE ARE ESTIMATING THAT
APPROXIMATELY TWO HUNDRED AND
TWENTY TWO BILLION DOLLARS. IS
WHAT WE WILL BE RESPONSIBLE FOR
PAYING. AND MY SECOND CORRECT
ME IF I'M WRONG. YEAH THIS IS
GOING MANAGER CAN HELP CLEAR
THAT UP- SO ARE YOU HEARD IN
THE NEWS ABOUT THE HUNDRED AND
FOURTEEN MILLION BE PAID OUT IN
BENEFITS 10% OF THAT. BEING
POTENTIALLY FRAUDULENT- THAT'S
ABOUT AN ELEVEN BILLION
DOLLARS. 95% OF THAT ELEVEN
BILLION IS FROM THE P. YOU A
PROGRAM- IN SO THAT MONEY IS
PAID FOR BY THE FEDERAL
GOVERNMENT THAT REMAINING 5%
IS. THE REGULAR YOU AYE PROGRAM
THOUGH ABOUT HALF THAT MONEY IS
ALSO FEDERAL FUNDS AND THEN
IT'S THE ADDITIONAL SIX HUNDRED
DOLLARS THE ACT AS IT WAS
CALLED AROUND ARE THE CARERS.
AXLE RIGHT NOW I'M GOING TO DO
AND IS A TWO AND- TWENTY THREE
DOLLARS IN CONFIRM FOR THE U.
I. PRO. BOB JUST SO WE'RE CLEAR
ON THAT. THANK YOU A ONE. YOU
MENTIONED THERE WAS A PLACE
WHERE WE COULD SEND OUR
CONSTITUENTS OR WE CAN HELP
THEM WITH THEIR TEN NINETY
NINES WOULD YOU GET THAT
INFORMATION TO US I DID NOT SEE
IT. IN MY MATERIALS TODAY.
ABSOLUTELY WE'LL GET THAT.
THANK YOU SENATOR LAW CENTER
LEE MULLIN. THANK YOU I
APPRECIATE THE CALL THE THING
MY CALL AND ME AND I AM THOSE I
AND PM OF THE DESK IN BY ST ON
THIS ISSUE AND- IS
UNPRECEDENTED AND IT CREATES A
BIG CHALLENGE WE HAVE NOW CASE
WORKERS IN OUR OFFICES THAT ARE
SUPPOSED TO BE FIELD
REPRESENTATIVES THAT ARE DOING
THIS NONSTOP- MY QUESTIONS AND
I THINK. WE CAN PROVIDE SOME
BRIEF ANSWERS FOR- FIRST FOR B.
MAY CAN YOU TALK TO US ABOUT
THE RELATIVE COSTS TO AND
SECURITY OF USING DIRECT
DEPOSIT VERSUS DEBIT CARDS TO
DELIVER THESE BENEFITS AND
SECOND PARTY TO- THAT THAT
QUESTION IS- THE UNDERSTANDING
FOR US AS THAT EDT IS NOT DOES
NOT PROVIDE YOU WITH EMAIL AND
PHONE NUMBERS SO THEREFORE YOU
GO THROUGH- EVERYTHING THROUGH
SNAIL MAIL. OTHER STATES THAT
YOU'RE WORKING. WITH PROVIDE
YOU THAT INFORMATION. THANK YOU
SENATOR THAT. BEHALF WITHOUT-
SO THE BACK TO THE- QUESTION.
THERE IS A IS NO DOUBT THAT THE
DEPOSIT IN. A BANK ACCOUNT-
INTO- BEEN A BANK ACCOUNT. AT
N. BANK. IS A FAR SAVE OPTION
FOR. AND A PRETTY CARD- THE
BANK ACCOUNT. IN THE NAME OF A
CLAIM IN FOR BENEFITS MUST HAVE
BEEN K. Y. AT MUST GONE THROUGH
THE CHECKS BY THE RECIPIENT
BANK. AND SO THAT ADDS A- A
LEVEL OF SAFETY THE- THAT- BUT-
WITH THE WITH THE PREPAID CARD-
IT IS ALL LESS EXPENSIVE ALL
AND- SAID. OBVIOUSLY THE ARE
DIFFERENT- IN TERMS THE
UNBANKED SO THAT'S THAT THE-
HAS BEEN FOCUSED ON THE BUS BUT
IN TERMS OF AND CRIMINAL
BEHAVIOR. AND CRIMINAL ACCESS
TO THAT PAYMENT FLOW A DIRECT
DEPOSIT OF FUNDS WHAT WAS UP
STATE AND- SIX- WITH RESPECT
TO- WOULD RISK TO- YOUR SECOND
CENTER I BELIEVE WAS AROUND-
YOUR MONEY AGAIN IF IT WAS
AROUND. EMAILS AND PHONE NUMBER
FOR THAN. STARTING IN FALL AND
EMAIL AND- AND THEN PHONE
NUMBERS. SO WE DO RECEIVE THAT
FROM OTHER STATES AND IT DOES
ALLOW US TO BRING A THE STATE.
A MORE TIME ALERTS. YOU
CARDHOLDER ACCLAIM. OR
RECIPIENT THAT THEIR CAR HAS
BEEN. BLOCKED OR FROZEN. AND
BUT OBVIOUSLY TO PLACE ALMOST
AS. PERSONALLY WITH THE
STRUCTURE OF CALIFORNIA PROGRAM
IT DOES HI INTO FIRST- DIRECT
DEPOSIT AND BANK ACCOUNTS IN
TERMS OF TYPES INFORMATION IS
CAP SYSTEM. OF OUR PARTNER
UNEMPLOYED. OF OUR PARTNERS AT
THE. ZERO- RIGHT NOW WE DON'T A
LIST OF- SELDOM AND A FOR EMAIL
I FOR CLIMATE A DON'T BELIEVE
IT IT'S K. AS A RESULT WE DO.
LARGELY VIA- FASHIONED POST
DON'T KNOW POINTED OUT THAT
WOULD BE SOMETHING PEOPLE
DISCUSS EDT AND COULD A PART.
THE PROGRAM ON A FORWARD. THANK
YOU. BUT AND THIS IS ALSO AN
ACTIVE GREETED SYSTEM- AND I
DON'T UNDERSTAND HOW IF THERE
IS A QUESTION THAT COMES UP WE
JUST KEEP POINTING FINGERS TO
EACH OTHER'S CALL CENTERS OR
DOING SOME OF THIS- VIA AND
TRADITIONAL MALE WHICH DOESN'T
EXPEDITE- THE IMMEDIATE NEED
FOR OUR CONSTITUENTS- I AM I
WANT TO BE CAREFUL WITH TIME- I
YOU KNOW I ALSO HAVE A
QUESTION- FOUR EDT- WHAT
SERVICES DOES ACCENTURE.
PROVIDING YOUR AND THAT ARE NOT
DUPLICATIVE OF WHAT THE AUDITOR
HAS. ALREADY RECOMMENDED WHAT'S
THE UNIQUENESS THERE. SENATOR
NEED TO VARIOUS- ACTUALLY WE
JUST BROUGHT ON EXTENSION- LAST
WEEK AND WE ACTUALLY MEET WITH
THEM TOMORROW- AND WE WILL GO
THROUGH EXACTLY WHAT IT IS THAT
WE'RE LOOKING FOR BUT I WILL
TELL YOU YOU KNOW ONE OF THE
THINGS IS- YOU KNOW LOOKING TO
REFINE OUR FRAUD CRITERIA JUST
TO GIVE YOU AN EXAMPLE.
REFINING ARE FRIED CRITERIA
CERTAINLY ONE OF THE- THE TOP
THINGS THAT WE'D LIKE THEM TO
DO AS WELL AS- HELP US WITH
SOME OF THE RECOMMENDATIONS-
THAT THE AUDITOR HAVE- HAS
POINTED OUT. PERFECT THANK YOU
AND I HOPE THAT WE DO YOU CAN
IDENTIFY THE UNIQUENESS AS
OPPOSED TO- YOU KNOW ANY ENTITY
COMING IN AND DUPLICATING WHAT
WE ALREADY KNOW- AND MY FINAL
QUESTION IS FOR THE AUDITOR-
THAT. YOU KNOW CAN YOU PLEASE
SPEAK TO SITUATIONS BEFORE ARE
YOU HAVE DONE AUDITS OF
DEPARTMENTS OR AGENCIES- AND
THAT THAT CHALLENGE CONTINUES
TO. TO PROCESS- WHAT WHAT CAN
BE DONE WHAT HAS THE STATE AND
IN THE PAST- WHEN DESPITE THE
AUDITS DESPITE THE INFORMATION
WE HAVE THE ON GOING-
CHALLENGES. WELL IT AND IN MY
EXPERIENCE THE LEGISLATIVE
OVERSIGHT IS CRITICALLY
IMPORTANT THE OTHER THE OTHER-
SITUATION THAT THE LEGISLATURE
HAS DONE IN THE PAST IS NOW
USING YOU SEE ON IT FOR
EXAMPLE- WHERE WE HAD SOME
SERIOUS CONCERNS ABOUT THEIR
BUDGETING PRACTICES AND THEIR
SUPPORT FOR CAMPUSES VERSUS THE
OFFICE OF THE PRESIDENT. THERE
WAS BUDGET CONTROL LANGUAGE-
PUT INTO THE BUDGET THAT
SUBSEQUENT YEAR THAT HELD YOU
SEE ACCOUNTABLE- SO THEY HAVE
TO IMPLEMENT OUR
RECOMMENDATIONS OTHERWISE THEY
WOULDN'T RECEIVE UP A PORTION
OF THEIR APPROPRIATION. OF THE
LEGISLATURE COULD PUT SOME TYPE
OF. CONTROL LANGUAGE IN THE
BUDGET- WITH RESPECT TO EDT I
DON'T KNOW IF THAT'S SOMETHING
MUCH INTEREST INTERESTED IN
DOING. BUT IN THE PAST IT
REALLY HAS BEEN. MORE OF THE
LEGISLATURE CONTINUALLY
EXERCISING ITS OVERSIGHT AND
MAKING SURE THAT DEPARTMENTS
IMPLEMENT RECOMMENDATIONS THAT
WE'VE MADE AN AND ONE OF THE
THINGS THAT WE DO DIFFERENTLY-
THEN HISTORICALLY THAT MY
OFFICE HAS DONE IN THE LAST FEW
YEARS WE NOW PUT
RECOMMENDATIONS OUT THAT HAVE.
SPECIFIC TIME FRAMES AND WE
WERE VERY CONSCIOUS TO MAKE
SURE THAT THE TIME FRAMES WERE
REASONABLE FOR EDT BUT WERE
ALSO WITHIN THIS LEGISLATIVE
YEAR. SO THAT THE LEGISLATURE
CAN. YOU KNOW PARTNER WITH OUR
OFFICE IN HOLDING. EDT
ACCOUNTABLE TO IMPLEMENTING ALL
OF THE RECOMMENDATIONS. THANK
YOU. IT SAYS THIS IS ANYTHING
GIVEN CON. TO BE HAD IT IS MY
HOPE AND MY DESIRE THAT THE
OUTCOME OF THIS HEARING IS ONE
WHERE WE CAN MOVE FORWARD AND-
WE- THIS MUCH TIME DISCUSSING
WHAT THE PROBLEM IS AS OPPOSED
TO WHAT THE STEPS ARE TO GET TO
AN OUTCOME- THIS IS A VERY VERY
VERY BIG ISSUE. AS YOU'VE HEARD
MY COLLEAGUES- SAY AND I WILL
REPEAT- THIS IS HUGE- YOU KNOW
OUR EFFECTIVENESS OR LACK THERE
OF THESE BEING MEASURED ON THIS
ISSUE- BUT YOU KNOW AS A
LEGISLATURE AS A STATE
ASSISTANCE- THAT WORK OR DON'T
WORK SO- I APPRECIATE THIS AND
I DO HOPE THAT THIS TAKES S TO
THE NEXT STEPS. OF WHAT WE CAN
DO TO SOLVE FOR THE MANY AT
PROBLEMS THAT HAVE BEEN
DISCUSSED TODAY THANK YOU
EVERYONE FOR PARTICIPATING.
THANK YOU SENATOR- WHERE WE GO
ON WITH SENATOR PORTANTINO-
IT'S ABOUT QUARTER TO TWELVE WE
MUST GIVE TIME TO A PUBLIC
COMMENT BALSA BEEN TOLD IS A
HARD. HARD TIME THE- TO END- SO
JUST A REMINDER PLEASE AT I
DON'T WANT TO CUT ANYBODY OFF
AT THE END WITHOUT HAVING ANY
OPPORTUNITY BUT WE'RE GONNA
HAVE TO GIVE. PUBLIC COMMENT
SOMETIME CENTER PORTANTINO
BETTER AT. THANK MEDICARE'S
RIGHT IT'S BEEN IT'S THAT THE
REPRESENTS THE BANK. WE HAVE-
WE HAVE BEEN ANOTHER OBLIGATION
THAT ACTUALLY STARTED AT THE
HALF PAST ELEVEN AND WE WERE
UNABLE TO COMPLETELY CLEAR OUR
CALENDARS FROM THE SHORT NOTICE
OF TODAY'S HEARING. IS WANT TO
THANK YOU FOR YOUR INVITATION
TODAY AND TO DOUBLE STANDARDS
AS WELL WE LOOK FORWARD TO
ANSWERING. FURTHER QUESTIONS AS
DIRECTED TO OUR COLLEAGUE BY
BUTLER. SO ST NOBODY WILL BE
ABLE TO STAY. UNFORTUNATELY NOT
OUR OUR- INITIALLY WE WERE TOLD
IS A TWO HOUR HEARING ENDING AT
ELEVEN AND- WE DID SAY ON
THROUGH ELEVEN FORTY FIVE BUT
WE- WE DID HAVE ANOTHER
OBLIGATION THAT WE WERE UNABLE
TO CLEAR. OKAY CENTER
PORTANTINO. THANK YOU THANK YOU.
THANK YOU MADAM CHAIR WELL MY
ON. THANK YOU MADAM CHAIR AND-
TO ALL THE CHAIRS AND MEMBERS-
THIS HAS BEEN A AN IMPORTANT
HEARING FOR OVERSIGHT AND S
THE DAUGHTER SAID THE
PARTNERSHIP BETWEEN THE
AUDITOR'S OFFICE AND THE
LEGISLATURE IS IMPORTANT
BECAUSE THIS ISSUE IS EXTREMELY
IMPORTANT TO OUR CONSTITUENTS
ALL OF CALIFORNIA- SO I'VE GOT
A COUPLE QUESTIONS AND A COUPLE
COMMENTS OBVIOUSLY. THE FACT
THAT THE TWO THOUSAND ELEVEN
AUDIT'S RECOMMENDATIONS WERE
NOT IMPLEMENTED IS STAGGERING-
THE FACT THAT THE INSTITUTION
RESISTED- IMPROVEMENT AND
CHANGE TO GET READY FOR THIS
UNPRECEDENTED PANDEMIC. HAS HER
CALIFORNIANS A SIGNIFICANTLY
OBVIOUSLY DIRECTOR SCIENCES IS
NOT WAS NOT PART OF THAT
DECISION MAKING AND IS A IS A
BREATH OF FRESH AIR SO GOING
FORWARD YOU KNOW WE HOPE THAT
THESE RECOMMENDATIONS- ARE PUT
FORTH AND IMPLEMENTED WITH
GREAT HASTE OBVIOUSLY THE CASE
WORK THAT OUR STAFF DO- TWO
WEEKS IN THE LIFE OF A
CONSTITUENT WHO'S FACING THIS
ISSUE IS TOO MUCH TIME- AND WE
HAVE HUNDREDS IN EACH OF OUR
OFFICE EVERY DAY FACING THESE
CHALLENGES- MY QUESTION FOR THE
AUDITOR YOU TALKED ABOUT
GETTINGREPORT BACK EVERY
NINETY DAYS. ON YOUR SUBSEQUENT
RECOMMENDATIONS TO MAKE SURE
THEY'RE IMPLEMENTED FOLLOWING
UP ON THE COMMENTS OF MY
COLLEAGUE SENATOR CORTESE- IN
VETTING IN THE IN THE
INSTITUTION MAY NOT BE AN
OPTION BUT WHY NOT HAVE A
THIRTY DAY REPORT BACK Y.
NINETY DAYS WHY WAS NINETY DAYS
CHOSEN GIVEN THE URGENCY FOR
OUR CONSTITUENTS WOULD IT BE
BETTER TO GET A REPORT BACK
EVERY NINETY DAYS ON THE
PROGRESS OF THE OF THE
IMPROVEMENTS SO THAT'S MY FIRST
QUESTION FOR. PERMITS HOUSE
SURE- CERTAINLY WE COULD ASK
FOR AND IF YOU DO VOLUNTARILY
PROVIDES INFORMATION TO US
EVERY THIRTY DAYS WE CAN LOOK
AT- THEIR PROGRESS EVERY THIRTY
DAYS AND NINETY DAY TIME FRAME
TIES TO OUR HIGH RISK PROGRAM-
AND WE HAVE HAD. TO IMPLEMENT-
DRAFT REGULAR A SHE SORRY.
REQUIRE THE NEW DAY LOOK BUT
CERTAINLY JUST LIKE OUR
TRADITIONAL SIXTY DAYS SIX
MONTHS ONE YEAR- IF THE
LEGISLATURE IS INTERESTED IN
THE ADMINISTRATION IS WILLING
TO PROVIDE INFORMATION TO US
MORE FREQUENTLY EVERY THIRTY
DAYS- MY STAFF WE WOULD BE
HAPPY TO REVIEW THAT
INFORMATION AND PROVIDE AN
ASSESSMENT. AND INFORMATION TO
THE LEGISLATURE TO THE PUBLIC
AND CERTAINLY BACK TO THE
ADMINISTRATION THOROUGH HEARING
THAT THAT'S GREAT BECAUSE THAT
WOULD BE A STRONG SUGGESTION
FROM ME THAT WE INCREASE THE
FREQUENCY OF THE REPORT BACK IN
OBVIOUSLY SEND THAT TO THE
CHAIRS AND LEGISLATURE SO I
DON'T KNOW IF THE DIRECTOR HAS
A COMMENT WOULD YOU VOLUNTARILY
PROVIDE AN UPDATE EVERY THIRTY
DAYS. THIS IS DIRECTOR SCIENCE.
SO THE THIRTY DAY CERTAINLY
WILLING TO TAKE THAT INTO
CONSIDERATION. AS I SAID YOU
KNOW WE'RE- THE WORKLOAD IS
TREMENDOUS BUT WE'RE GOING TO
BE HAVING OUR COMMAND CENTER
TAKE A LOOK AT THESE THINGS
ANYWAY SO LET ME TALK TO MY
STAFF. THAT WOULD BE GREAT
THANK YOU AND AS I SAID YOU
KNOW OUR CONSTITUENTS TWO WEEKS
IN THEIR LIVES IS COULD BE LIFE
OR DEATH COULD BE HOME OUR
HOMELESSNESS COULD BE. A SICK
CHILD I MEAN. THESE ARE SERIOUS
ISSUES AND- YOU KNOW THANK YOU
FOR BEING THERE AND THANK YOU
FOR BEING OPEN TO THAT. ON THE
TRANSLATION ISSUE AS THE CHAIR
MENTIONED A DISPROPORTIONATE
NUMBER OF FAMILIES AFFECTED-
ARE LATINO- CALIFORNIA IS THE
MOST DIVERSE STATE AND IN THE
COUNTRY IN. MULTIPLE LANGUAGES
ARE SPOKEN. MISS HOW HAS HAS
YOUR OFFICE ISSUED ANY BEST
PRACTICES ON TRANSLATION WE
ROLLED OUT THE SMALL BUSINESS
PROGRAM. WHICH HAS THAT THE
TRANSLATION PORTAL- IS SINCE
THAT CONTINUES TO BE A
CHALLENGE FOR THE TV IS THERE A
BEST PRACTICE RECOMMENDATION
THAT NOT ONLY CAN BE USED TO
IMPROVE EDT BUT- ACROSS ALL OF
THE PROGRAMS. THAT THE STATE.
INSTITUTES HI FOR THIS
PARTICULAR AUDIT WE DIDN'T
NECESSARILY LOOK AT US
SPECIFICALLY LOOKING AT
TRANSLATION HOWEVER. WE HAVE
CONDUCTED AUDITS IN THE PAST
DEFINITELY- ALLEGORY- BILINGUAL
SERVICES ACT IT REQUIRES STATE
AGENCIES THAT HAVE INTERACTION
WITH THE PUBLIC. AND IF THE
BILL LANGUAGE SPOKEN IS NOT
ENGLISH AND IT AND IT'S I THINK
IT'S ABOUT 5% OF THE-
INDIVIDUALS. CONTACTING THAT
PARTICULAR STATE AGENCY THAT
STATE AGENCY HAS TO HELP EITHER
INDIVIDUALS AND HOUSE TO BE
ABLE TO TRANSLATE AND THAT
PARTICULAR LANGUAGE OR HAVE YOU
KNOW CONTRACTED FOR THOSE
SERVICES. SO EDT I THINK WOULD
FALL EASILY WELL WITH CENTER
EDT IS RESPONSIBLE UNDER THIS
ACT AGENCIES HAVE TO TRACK. OF
THE LANGUAGES OF INDIVIDUALS
WHO CONTACT THAT PARTICULAR
AGENCY AND AGAIN IF IT'S ABOVE
THAT THRESHOLD THEY HAVE TO BE
ABLE TO PROVIDE THOSE SERVICES
WHEN WE'VE CONDUCTED THOSE
AUDITS IN THE PAST. WOULD NOT
ONLY. MEASURE WHETHER OR NOT
AGENCIES ARE COMPLYING WITH
THOSE REQUIREMENTS BUT THERE'S
ALSO BEST PRACTICES AS FAR AS
HAVING MATERIALS EITHER ON YOUR
WEBSITE OR ANYTHING THAT YOU'RE
DISTRIBUTING THROUGH THE MAIL.
IN A VARIETY OF DIFFERENT
LANGUAGES SO THAT YOUR YOUR
SERVING AS MANY PEOPLE IN
CALIFORNIA AS POSSIBLE SO THERE
ARE RESPONSIBILITIES THAT YOU
DEEP ALREADY DOES HAVE. UNDER
UNTIMELY ALLEN TORY. SO YES
FOLLOWING THAT UP I MEAN I
WOULD I WOULD IMPRESS UPON V.
D. TO INSTITUTE THE BEST
PRACTICES OBVIOUSLY THE LATINO
COMMUNITY'S BEEN IMPACTED IN MY
DISTRICT SIGNIFICAN ARMENIAN
AMERICAN POPULATION- WITH TWO
DIALECTS. OF ARMENIAN I MEAN
THE EASIER WE MAKE THIS THE
TRANSLATION PORTHOLE OF MORE
SERVICES WE CAN GET OUT QUICKLY
SO AGAIN THAT'S A STRONG
URGENT. FROM FROM MY
PERSPECTIVE AND I KNOW MY
COLLEAGUE SHARED AS WELL- THE
FRO- JUST TWO COMMENTS QUICKLY
THE ID ME PROGRAM HAS BEEN A
CHALLENGE IN ALL OF THE
CONSTITUENTS SERVICES WE'RE
DOING PLEASE- IMPROVE THAT WITH
GREAT HASTE THE FROZEN ACCOUNTS
THOSE THAT ARE LEGITIMATE I'M
SORRY B. OF A IS LEFT THE CALL.
BUT THE LEGITIMATE ACCOUNT
ACCOUNTS NEED TO BE UNFROZEN AS
QUICKLY AS POSSIBLE OF THE TEN
POINT FOUR BILLION DOLLARS OF
FRAUD HOW MUCH OF THAT ARE WE
GOING TO GET BACK AND WHAT.
WHAT PROCESSES BEEN PUT IN
PLACE TO GO AFTER THE RETURN OF
THAT MONEY TO THE STATE AND ARE
THERE REFERRALS FOR PROSECUTION
IF THERE WERE YOU KNOW MASSIVE
FRAUD. CONSPIRACIES OUT THERE
SO HOW WE GETTING THAT MONEY
BACK INTO WE GOING AFTER THE
FOR ALL THE FRAUD PERPETRATORS.
ONE OF THE THINGS THAT MINISTER
RECKLESS JUST. ONE OF THE
THINGS THAT THE GOVERNOR DID
WAS PROVIDE FUNDS TO FIND D. A.
INVESTIGATIONS INTO THIS MATTER
WE OURSELVES HAVE CONDUCTED TWO
HUNDRED AND FORTY DESTINATIONS.
WHICH HAVE RESULTED IN A
HUNDRED AND THIRTY EIGHT
ARRESTS. THAT'S GREAT AND HOW
MUCH OF THE MONEY WE'RE GONNA
GET BACK YOU THINK. OF THE TEN
POINT FOUR WE'RE GOING TO GET
BACK AS MUCH MONEY AS WE
POSSIBLY CAN ALL RIGHT I DON'T
WANT TO GO SIDEWAYS WITH YOU
BUT I AGREE WITH YOU LET'S GET
IT ALL BACK. THOSE ARE MY SHORT
QUESTIONS AND AGAIN I WANT TO
ASSOCIATE MYSELF WITH THE
COMMENTS OF MY COLLEAGUES TODAY
THIS IS IMPORTANT AND THANK YOU
IN THE OVERSIGHT IS NECESSARY
IN THE PARTNERSHIP IS IMPORTANT.
THANK YOU CENTER PORTANTINO'S.
MAN YES- SO I JUST WANTED FIRST
REITERATE. THE CONCERNS RAISED
AROUND CALL CENTERS- AND JUST
ECHOED THE COMMENTS OF MY
COLLEAGUES- JUST TO GIVE YOU
ARE DISTRICT OFFICES
PERSPECTIVE. ALMOST ALL OF THE
PEOPLE THAT ARE CALLING IN OUR
OFFICE. HAVE TOLD THEM THEY'VE
HAD TROUBLE GETTING A HOLD OF A
LIVE PERSON AT EDT. THEY'RE ON
HOLD FOR HOURS AT A TIME
SOMETIMES ALL DAY. ONE CALLER
LAST WEEK BROKE DOWN AND CRIED
TO OUR DISTRICT OFFICE WHEN SHE
ACTUALLY TALKED TO SOMEONE AND
SAID. GOD BLESS YOU AND
EVERYONE THAT WORKS IN YOUR
OFFICE. THE FACT THAT YOU CAN
ANSWER THE PHONE YOU DON'T
UNDERSTAND HOW MUCH THAT MEANS.
I APPRECIATE THE EMPHASIS THAT
THIS PARTICULAR- EDT LEADERSHIP
IS PUTTING ON CALL CENTERS AND
STANDING THEM UP. BUT JUST TO
RELAY THIS A FEW DATA POINTS
THIS IS NOT WHAT PEOPLE ARE
EXPERIENCING RIGHT NOW. BECAUSE
I ACTUALLY WANTED TO ASK FIRST
ABOUT. THE FEDERAL STIMULUS THE
PANDEMIC UNEMPLOYMENT SYSTEM
PROGRAM. I JUST GIVE YOU
ANOTHER ANECDOTE WE HAVE A
SMALL BUSINESS OWNER WHO. HAD
TO FOLD UP THE SHOP TO THE
PANDEMIC. HI HE QUALIFIED FOR
UNEMPLOYMENT BENEFITS UNDER THE
ORIGINAL P. WAY PROGRAM- BUT
WAS NOT ABLE TO EVEN THOUGH HE
QUALIFIED. FOR THE PHASE TWO
EXTENSIONS OF THAT. HE HAS NOT
BEEN ABLE TO ACCESS THOSE FUNDS
SINCE DECEMBER TWENTY FIFTH. HI
WE HE'S TOLD I THINK LIKE
EVERYONE ELSE THAT QUALIFIES
FOR THE FACE TO BENEFITS. THAT
THEY WILL RECEIVE THEIR
BENEFITS STARTING MARCH SEVENTH.
THIS IS AN INCREDIBLY LONG TIME
HE'S GONNA BE GOING FOR SEVERAL
MONTHS THREE MONTHS WITHOUT
BENEFITS. IS THERE ANYTHING WE
CAN DO TO EXPEDITE THE RELEASE
OF THESE FUNDS TO PEOPLE LIKE
THIS PARTICULAR CONSTITUENT. I
THINK THIS DRESS FOR NINETY YES
YES MY UNDERSTANDING. ONE OF
THE MAJOR PROBLEMS WITH GETTING
PEOPLE THEIR MONEY AS QUICKLY
AS POSSIBLE. IS THERE TO CREATE
A TECHNOLOGY SYSTEM THAT WE
HAVE A DUTY. I DON'T EVEN KNOW
IF PEOPLE WILL HAVE TO CALL
HOME MORE. HEARING ITSELF A
PART OF OUR OUR BODIES PROGRAMS.
GETTING A PEGS TO THE CLIENTS
OUR OUR TOPPRIORITY. SO- WE
HAVE GOTTEN OUT. BILLIONS OF
DOLLARS IN THE LAST MONTH AND
DINNER YOU KNOW WHO WE WANTED
TO MAKE SURE THAT THE
TECHNOLOGY SYSTEM WORKED THAT
THE WOMEN GOING TO BE
IMPEDIMENTS ARE TO THE PEOPLE
WHO ARE GOING TO BE- ABOUT
SUPPORTING THEIR ELIGIBILITY
MARCH SEVENTH HOW DO WE HAVE
ANY OTHER- ALL OPTIONS IN YOUR-
THIS IS WE HAVE BEEN LOOKING AT
THIS AND IT'S LIKE IN BETWEEN
PROGRAMMING- THINK YOU'RE A
WILLIAMS THANK YOU FOR THE
QUESTION CENTER. WE CERTAINLY
UNDERSTAND THE GAPS FOR THESE
INDIVIDUALS- WE UNDERTOOK THIS
HUGE TREMENDOUS EFFORT IN A
PHASED APPROACH. WE'VE STRIPPED
EVERYTHING THAT OUR TECHNOLOGY
AREA HAS BEEN WORKING ON TO
ALLOW THIS TO BE THE ONLY POINT
OF FOCUS AND IF WE CAN GET IT
IN ANY SOONER YOU FOLKS WILL BE
THE FIRST TO HEAR- WE ARE
CONTACTING THE- CLAIMANTS THIS
WEEK TO. JUST HEADS UP AN ALERT
BUT AGAIN THAT'S ANTICIPATION
OF THE MARCH SEVENTH ST. WE
CONTINUE TO LOOK WE CONTINUE TO
ASK HIM IF WE FIND ANY CAPACITY
WHATSOEVER IT WILL COME IN
SOONER BUT AT THIS POINT IN
TIME HONEST ASSESSMENT IS MARCH
THE SEVENTH. I APPRECIATE THAT-
JUST FOR PURPOSES THE TIME I
WON'T FOLLOW UP WITH A QUESTION
BUT I WILL FOLLOW UP WITH THE
STATE IN THIS PARTICULAR
GENTLEMAN IS HOMELESS. HE'S
BEEN LIVING IN A TENT FOR THE
LAST SIX WEEKS. FIRST OF ALL I
ANY HELP TO TARGET HOMELESS OR
NEAR HOMELESS POPULATIONS. OUT
WOULD BE MUCH APPRECIATED WE
HEAR FROM A LOT OF FOLKS. ARE
THAT HAVE TROUBLE ACCESSING
PHONES TROUBLE ACCESSING EMAILS
OR WEBSITES. THEY DON'T HAVE AN
ADDRESS SO THEY'RE THEY'RE VERY
MUCH IN THIS DESPERATE
SITUATION- ANY HELP FOR THEM
WOULD BE APPRECIATED AND THEN.
AND YOU KNOW I WOULD APPRECIATE
ANY EFFORTS TO TRY TO MAKE SURE
THAT WE ARE TAKING STEPS TO
MITIGATE THE FRAUD THAT WE SAW
WITH THE ORIGINAL P. WAY WHICH
IS WHERE I UNDERSTAND MOST OF
THE FRAUD TOOK PLACE BOB MY
LAST STATEMENT IS AGAIN NOT A
QUESTION UNFORTUNATELY BE OF A
LAUGHED I WILL FOLLOW UP ON
THIS WITH THE LATTER BUT ONE
THING I WOULD POINT OUT BANK OF
AMERICA HAS REPEATEDLY REFUSED
TO GIVE OVER DETAILS OF HOW
MUCH COMPENSATION TO RECEIVE
FROM THIS CONTRACT WITH THE
STATE- I WOULD JUST NOTE THAT
I'M ASSUMING IT WOULD HAVE BEEN
ENOUGH TO IMPLEMENT BASIC
SECURITY PROTOCOLS. I LIKE
CHIPS AND OTHER SECURITY
PROTOCOLS THAT WERE ABSENT FROM
THESE UNEMPLOYMENT BENEFIT
PROGRAMS WHICH ARE PRESENT ON
OTHER LINES OF BUSINESS
INCLUDING MY BANK ACCOUNT
SAVINGS AND CHECKING- CERTAINLY
PRIVATE WEALTH ACCOUNTS AND
OTHER TYPES OF ACCOUNTS I WILL
ALSO NOTE THAT THOSE TYPES OF
ACCOUNTS HAVE NOT EXPERIENCED
FRAUD TO ANYWHERE CLOSE TO THIS
DEGREE- I THINK WHAT WE SAW
HERE WITH BANK OF AMERICA
SYSTEMATIC UNDER INVESTMENT IN
ITS SECURITY PROTOCOLS FOR
UNEMPLOYMENT WAS AKIN TO ITS
FAILURES AHEAD OF THE SUBPRIME
CRISIS THE LAST CRISIS WE FACE.
WHEN THEY WERE TAKING SHORT
TERM GAINS AND THEN SUFFERING
LONG TERM COSTS HI THIS IS
UNCONSCIONABLE THE LEVEL FRONT
WE SAW IS UNIQUE TO THIS AND I
WOULD BE CURIOUS TO SEE WHAT
THOSE LEVELS ARE BECAUSE YOU
MENTIONED EARLIER THAT THIS IS
SOMETHING THAT IS NATIONWIDE
AND NOT LIMITED TO CALIFORNIA I
WOULD ALSO BE CURIOUS AND
BANKAMERICA COULD RESPOND TO ME
ON THIS IF YOU ARE IN
DISCUSSIONS WITH THEIR FEDERAL
REGULATORS ABOUT THE MATERIAL
RISKS POSED BY YOUR FAILURES TO
INVEST IN SECURITY PROTOCOLS.
AROUND THESE UNEMPLOYMENT
INSURANCE POGRAMS ACROSS THE
COUNTRY I'M SORRY WHAT YOU'RE
NOT GONNA BE ABLE TO GET AN
ANSWER FOR THAT I DEEPLY NOTED
I WOULD SUGGEST I HAVEN'T
TALKED TO HER ABOUT A BARB BY
WE ALL FALL UNDER THE LETTER
ARE BANKING CHAIR US AND IT'D
PROBABLY IT'LL IF WE COULD
SUBMIT QUESTIONS TO YOU TO THEN
SENT INTO- AND GET THE ANSWERS
FROM BANK OF AMERICA SO-
ANYTHING LIKE THAT DON'T BRING
THEM UP TODAY. BUT- GET HIM
OVER TO SENATOR CO A YEAR OF.
WE HAVE MEN. BEFORE WE GET EVEN.
AND WE HAVE NOT TAKEN THE
PUBLIC COMMENTS SO. PLEASE TAKE
A MINUTE OF EACH OF THE-
REMAINING SENATORS SO THAT. WHY
DON'T GET EVICTED. OKAY BEFORE
WE GO SO WE HAVE SENATOR CHOI
BOGUE CENTER WILL CONSIDER
BRADFORD. THIS IS A- GOOD
AFTERNOON THIS QUESTION- FIRST
OF ALL I AM QUITE EXCITED I'M A
FRESHMAN SENATOR AND BUT I'M
REALLY EXCITED TO- HAVE HAD THE
OPPORTUNITY TO HEAR OUR
CALIFORNIA STATE AUDITOR THAT
WHOLE. AT SPEED TODAY VERY
IMPRESSED WITH THE WORK THAT AT
HER DEPARTMENT HAS- COMPLETED
AND I'M ALSO QUITE EXCITED TO-
TO HAVE HEARD AND MATT DIRECTOR
SOUNDS I THINK IF ANYONE IS
THERE PER PERSON TO START.
MEETING THE CHALLENGES THEY
WERE FACING I THINK IT'S
DIRECTOR SOUNDS. WITH THAT IN
MIND I HAD A QUESTION AND I'M
SORRY BANK OF AMERICA HAD TO
LEAVE QUITE EARLY. I'M NOT
EARLY BACK EARLIER THAN
EXPECTED OR NEEDED. I HAD A
QUESTION FOR BOTH EDT AND OUR
BANK OF AMERICA AND ONE OF THE
QUESTIONS HAS TO DO WITH THE
FACT. WHY IS IT THAT WE CAN'T
HAVE IT HAS BEEN IMPLEMENTED IF
A POSSIBLE WAY FOR- FOR
INDIVIDUALS TO COME IN IN
PERSON AND PROVED THAT
IDENTITY- WITH REGARD TO
GETTING THEIR BENEFITS- THAT IS
ONE QUESTION. NUMBER TWO- BUT
THE QUESTION IS HOW IS HE
PLANNING ON EXPEDITIOUSLY
ASSISTING INDIVIDUALS WHO HAVE
HAD THEIR IDENTITY STOLEN
INTERFACING. INTERFACING AND
EXPECTED TAX LIABILITY WITH
WILL EDT BE ABLE TO IMPLEMENT
THE STATE AUDITOR'S
RECOMMENDATIONS JUST ITS
VICTIMS OF IDENTITY THEFT TO
ENSURE THAT THEY RECEIVE PROPER
ASSISTANCE AND AVOID TAX
LIABILITIES FOR BENEFITS THEY
NEVER RECEIVED AND FURTHER IS
EIGHTY PER TO RESPOND TO
VICTIMS OF IDENTITY THEFT WHO
RECEIVED INCORRECT TAX FORMS.
AND BY MID FEBRUARY TWENTY
TWENTY ONE PROVIDE INFORMATION
ON ITS WEBSITE WITH A SEPARATE
EMAIL BOX FOR PROMPT A SYSTEM
AND RESOLUTION. AND LASTLY HAS
EDT ALERTED THE IRS OF THIS
CRISIS. I CAN ANSWER THAT
QUICKLY STRECKER SILENCE YES WE
DO HAVE A SYSTEM WE HAVE A CALL
CENTER ZERO THREE HUNDRED
PERSON CALL CENTER WE HAVE
PROCEDURES WE HAVE BEEN PUSHING
OUT THOSE PROCEDURES TO
LEGISLATIVE OFFICES AND TO THE
PRESS. WE WILL RESPOND TO
INDIVIDUALS WHO RECEIVED A TEN
NINETY NINE UNDESERVEDLY. AND-
FIVE I THINK THAT ENTERED AND
THAT WILL HELP OFFSET THE
UNEXPECTED OF TAX LIABILITY.
AND YES WE DID TALK TO THE IRS
IT WILL WORKING WITH THEM.
SENATE MITCHELL BOOK IS THAT IT.
I'M NOT SURE IF WE ANSWERED
THIS QUESTION BUT- HAS THERE
BEEN AN EASY WAY FOR
CARDHOLDERS TO CONTACT INDIAN
BANK OF AMERICA THAT HAVE THEIR
CARDS. AND HAVE THEIR CARDS
UNFROZEN MEETING IN PERSON. ALL
OF. WE LIKE EVERY OTHER OFFICE
HAVE HAD TO HAVE PEOPLE WORKING
FROM HOME WE HAVE ACTUALLY IN
REGULAR TIMES THERE ARE PHONE
LINES INSIDE R. EDG DISTRICT
OFFICES WHERE PEOPLE CAN COME
AND DO THAT. ILLEGAL TO MAKE
THAT AVAILABLE DURING THIS TIME.
THANKS IS THERE ANYTHING ELSE
YOU WANNA ADD TO THAT HI CAROL
INSPECTED JUST ADD THAT YOU'RE
SPOT ON SENATOR WE'RE ACTUALLY
LOOKING AT THAT FUNCTIONALITY
THROUGH SERVICE TO VERY SIMILAR
TO YOU SHOW UP IN PERSON TO GET
A- PASSPORT AND OTHER DOCUMENTS
WE'RE LOOKING TO HAVE THAT TYPE
OF A SERVICE AVAILABLE IN THE
VERY NEAR FUTURE IN PERSON-
IDENTITY VERIFICATION. THANK
YOU. THAT'S ALL FOR ME THANK
YOU THANK YOU SENATOR A SENATOR
WILK. NO. HE GAVE UP OKAY. ALL
RIGHT SENATOR BRADFORD THANK
YOU MADAM CHAIR AND I APOLOGIZE
FOR BEING LATE SO I DON'T WANT
TO BE REDUNDANT SO I'LL BE VERY
QUICK FIRST I JUST. AT A LOSS
SAID IT TAKES THIRTEEN WEEKS TO
TRAIN- NEW- ET DE EMPLOYEES
BECAUSE WE'VE ALL HEARD THE
HORROR STORIES AND ALL OF OUR
DISTRICTS ABOUT. FOLKS BEING ON
HOLD FOR HOURS IF NOT. DAYS
WAITING FOR SERVICE SO I THINK
IN ORDER FOR THIS TO WORK. ALL
OF OUR CONSTITUENTS DESERVE TO
HAVE A CONTACT BY HUMAN ALIVE
BODY AND ADDRESS THIS PROBLEM.
BUT AS CHAIR PUBLIC SAFETY I
JUST WANT TO DRILL DOWN REAL
QUICK. ON THE NUMBER OF FRAUD
CASES FOR- THEY WERE PAID TO
INCARCERATED. THERE ARE THIRTY
FIVE STATES. IN THE NATION THAT
HAVE SOME KIND OF CROSS
REFERENCE- VERIFYING THOSE
INCARCERATED BEFORE BEING PAID
ON IT. UNINSURED CLAIMS- WHY
HAVEN'T WE DONE SOMETHING LIKE
THAT HERE IN CALIFORNIA
UNDERSTANDING THE NUMBER OF
PEOPLE WHO ARE. CARS ARE READY
INCARCERATED THE SHOULD BE EASY
TO CROSS REFERENCE AND
SECONDLY- WE CANNOT ASSUME THAT
ALL FRAUD CASES. DAVID EIGHT
INDIVIDUALS I SHOULD SAY
INCARCERATED FOR FRAUD SOME ARE
VICTIMS OF IDENTITY THEFT LIKE.
SENATOR FEINSTEIN ALSO- HI WE
REVIEWED ANY OF THESE CASES
AND- AND MAKING SURE GOING
FORWARD THAT ARE. WORKING IN
THE PEOPLE DESERVE TO BE PAID.
LET ME JUST RESPOND TO THAT THE
FULL YES SENT DIRECT YES WE NOW
HAVE A SYSTEM TO IDENTIFY. EDT
MY UNDERSTANDING AND I THINK IT
WAS MENTIONED DURING THE
HEARING AT ONE POINT
APPROACHED. THE DEPARTMENT OF
CORRECTIONS WHO WERE UNDER THE-
IN THE INFORMATION THEY HAD AT
THE TIME WAS THAT THEY COULD
NOT SHARE. THAT INFORMATION IT
TOOK THE ATTORNEY GENERAL TO
ALLOW COMMISSION FOR THAT FOR
US TO BE ABLE TO DO IT. AND
WE'RE DOING IT NOW. GREAT THAT
IS THAT IT CENTER BRADFORD
ANYTHING ELSE YOU ARE I JUST I
DON'T AT THE VERY DRESS TO
THIRTEEN WITH TRAINING I KNOW
IT WAS LONGER THAN THAT BEFORE
BUT NOW THE GROUP REDUCE DOWN
THE THIRTEEN WE QUITE TAKES
ITSELF. TAKES A LONG TO TRAIN
PEOPLE TO. PRETTY MUCH OUT. OF
LUCK FOR I CAN ANSWER THAT
QUICKLY TO. THE DEAL WELL
REGULATIONS ARE VERY
COMPLICATED. EDTREGULATIONS
ARE VERY COMPLICATED EDG HAS
NOT HAD ITS REGULATIONS WILL BE
WRITTEN IN EIGHTEEN YEARS THIS
IS ONE OF THE FIRST THINGS I
DID WHEN I JOINED THE
CALIFORNIA DEPARTMENT OF SOCIAL
SERVICES. AND WHEN WE GET PAST
THIS WORKLOAD THAT'S ONE OF THE
THINGS THAT WE'RE GOING TO DO.
OKAY CENTER BRADFORD. GOODBYE
GOOD OKAY WELL AGAIN- IF
THERE'S ANY SPECIFIC QUESTIONS
TO BANK OF AMERICA THAT COME UP
TO YOU- PLEASE LET'S SEND THEM
TO CENTER ABOUT A YEAR AGO AND
SHE WILL GET ANSWERS FOR US
RIGHT OKAY. RIGHT I APPRECIATE
ALL OF YOU THANKS VERY MUCH-
WE'RE GONNA NOW MOVES ON TO-
ANYONE WANTING TO PROVIDE
PUBLIC COMMENT REGARDING THE-
THE PROPOSAL- REGARDING THE
AUDIT. AS A REMINDER TODAY'S
PARTICIPANT NUMBER IS. EIGHT
FOUR FOUR TWO NINE ONE SIX
THREE SIX FOUR AND THE ACCESS
CODE IS. ONE FOUR ONE SEVEN SIX
ZERO NINE. DUE TO CONSTRAINTS
REGARDING THE LENGTH OF
HEARINGS TECHNOLOGY
CONSIDERATIONS AND CLEANING
PROTOCOLS THE CHAIR MAY
INSTITUTE TIME LIMITS ON
TESTIMONY TODAY I'M GOING TO
ASK THAT EACH MEMBER OF THE
PUBLIC PROVIDE COMMENT. KEEPING
THEIR REMARKS WITHIN ONE MINUTE
NOW LET'S BEGIN WITH ANY
WITNESSES IN THE GALLERY WHO
WISH TO PROVIDE PUBLIC COMMENT.
I DON'T SEE ANYBODY- ARE THERE
ANY WITNESSES IN ROOM ONE
TWELVE WHO WISH TO PROVIDE
PUBLIC COMMENT. SEEING NONE-
WILL NOW MOVE TO WITNESSES
WAITING TO PROVIDE PUBLIC
COMMENT VIA THE TELECONFERENCE
SERVICE MODERATOR IF YOU'LL
PLEASE PROMPT INDIVIDUALLY.
WAITING TO PROVIDE PUBLICLY
DECENT GENTLEMAN YES IF YOU'RE
JOINING US BY PHONE AND HAVE
PUBLIC COMMENT PLEASE PRESS ONE
THEN IF ZERO ON THE TELEPHONE
KEYPAD. IF YOU ARE USING A
SPEAKER PHONE PLEASE PICK UP
THE HANDSET BEFORE PRESSING THE
NUMBERS AGAIN YOU MAY PRESS ONE
THEN ZERO ON THE TELEPHONE FOR
PUBLIC COMMENT. MADAM CHAIR I
HAVE NO ONE QUEUING UP ON THE
PHONE. OKAY CAN YOU PLEASE
CHECK THE LINE ONCE AGAIN TO BE
SURE WE HAVE HEARD FROM ALL
MEMBERS OF THE PUBLIC WHO ARE
INTERESTED IN TESTIFYING. YES
IF YOU ARE JOINING BY PHONE AND
HAVE PUBLIC COMMENT PLEASE
PRESS ONE THEN ZERO ON YOUR
TELEPHONE KEYPAD. MADAM CHAIR
WE HAVE NO ONE SHOWING UP ON
THE PHONE. OKAY HAVING HEARD
FROM ALL MEMBERS OF THE PUBLIC-
SENATORS DO YOU HAVE ANY
ADDITIONAL FINAL QUESTIONS OR
COMMENTS NO. OKAY OF THANK YOU
TO ALL THE INDIVIDUALS WHO
PARTICIPATED IN PUBLIC
TESTIMONY TODAY IF YOU WERE NOT
ABLE TO TESTIFY TODAY PLEASE
SUBMIT YOUR COMMENTS OR
SUGGESTIONS IN WRITING TO THE
BUDGET FISCAL REVIEW
SUBCOMMITTEE FIVE OR VISIT OUR
WEBSITE. YOUR COMMENTS AND
SUGGESTIONS ARE IMPORTANT TO US
AND WE WANT TO INCLUDE YOUR
pHEARING RECORD THANK YOU WE
APPRECIATE YOUR PARTICIPATION.
THANK YOU FOR YOUR PATIENCE AND
COOPERATION WE HAVE CONCLUDED
THE AGENDA FOR TODAY'S HEARING
ON THE DD THE JOINT OVERSIGHT
HEARING WITH SENATE BUDGET AND
FISCAL REVIEW COMMITTEES FIVE
SENATE LABOR PUBLIC EMPLOYMENT
RETIREMENT COMMITTEE AND THE
SENATE BANKING AND FINANCIAL
INSTITUTIONS COMMITTEE IS
ADJOURNED. THANK YOU VERY MUCH.