INSTITUTIONS WILL COME TO ORDER
GOOD MORNING IN RESPONSE TO THE
CO THE NINETEEN EMERGENCY AND
TO PROTECT THE PUBLIC
LEGISLATORS AND EMPLOYEES WE
MUST LIMIT NONESSENTIAL
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 THE PUBLIC
CONTINUES TO HAVE ACCESS TO THE
LEGISLATIVE PROCESS. TO ALLOW
THE PUBLIC ACCESS WE HAVE
ADMITTED MEMBERS OF THE PUBLIC
TO TWO HEARING ROOMS TO THE
EXTENT THAT SOCIAL DISTANCING
REQUIREMENTS ALLOW AND WILL BE
USING A TELECOM CONFERENCE
SERVICE FOR THOSE INDIVIDUALS
WHO WISH TO TESTIFY TODAY. FOR
ALL INDIVIDUALS 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 EIGHT
FOUR FOUR. TWO NINE ONE SIX
THREE SIX FOUR AND THE ACCESS
CODE IS. SEVEN THREE SIX TWO
EIGHT THREE ONE. FOR DETAILED
INSTRUCTIONS ON HOW THE
TELECONFERENCES TO WORKS PLEASE
REFER TO THE SENATE AND-
COMMITTEE WEBSITE. WHEN WE
MOVED TO THE PUBLIC COMMENT YOU
WILL BE PROMPTED BY A MODERATOR
TO DIAL ONE THEN ZERO TO FOR
SUPPORT AND OPPOSITION PRESS
THIS ONLY ONE TIME AND WAIT
PATIENTLY FOR AN OPERATOR TO
ASSIGN YOU A LINE NUMBER. THIS
CAN BE A SHORT WAIT ONCE YOU
RECEIVE YOUR LINE NUMBER YOU
WILL WAIT IN THE QUEUE FOR A
MODERATOR TO CALL YOUR LINE
I NEEDED AND YOU WILL BE READY
TO ADDRESS THE COMMITTEE. IF
PLEASE NOTE THAT IN ORDER FOR
US TO HEAR YOU CLEARLY AND
AVOID ACOUSTIC FEEDBACK YOU
MUST MEET THE DEVICE YOU ARE
WATCHING AND 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 WHO IS DISRUPTIVE
MAY BE REMOVED FROM THE REMOTE
MEETING SERVICE OR HAVE THEIR
CONNECTIONS MUTED WELL EVERY
EFFORT HAS BEEN MADE TO
STREAMLINE THE HEARING PROCESS.
AND CONDUCT OUR HEARINGS IN A
CLOSE TO THE SAMEMANNER AS
CUSTOMARY THERE MAY BE SOME LAG
TIMES FOR PARTICIPANTS WHO ARE
ADJUSTING TO THE NEW USE OF
ONLINE TOOLS OR TECHNOLOGY
PLEASE BE RESPECTFUL AND
PATIENT SO THAT ALL INTERESTED
PARTIES CAN BE HEARD. WE HAVE
THREE BILLS ON TODAY'S AGENDA
AND BEFORE YOU PRESENT I'D LIKE
TO ESTABLISH QUORUM- KIM
CONSULTANT CAN WE PLEASE CALL
THE ROLL. WITH SENATORS. PLEASE
SPEAK INTO YOUR MICROPHONE WHEN
YOUR NAME IS CALLED. LAMONT
HERE LAMONT HERE UNTIL ABOUT.
BRADFORD THIS YEAR BRADFORD
HERE CABALLERO. DALY YOU MIGHT.
MY FRIEND HERE DALY HERE THERE
ARE STILL HERE THEY'RE ALSO
HERE LET'S OF MEDICINE. SO HERE
MEN YEAR MAN HERE PORTANTINO
I'M HERE TO PORTANTINO HERE YOU
HAVE A QUORUM THANK YOU NOW
THAT WE'VE ESTABLISHED QUORUM
AT LIKE TO WELCOME SENATOR
HERTZBERG WHO WILL BE
PRESENTING SB SIX THREE EIGHT
YOU MAY PROCEED SENATOR
HERTZBERG THANK YOU MADAM CHAIR
AND MEMBERS. YOU KNOW HOW THE
RATE OF CHANGE WE ARE
EXPERIENCING IS NOTHING LESS
THAN EXTRAORDINARY WHEN I
SERVED IN GOVERNMENT BEFORE
GOOGLE WASN'T INCORPORATED. AND
I LEFT IN MANY YEARS AFTERWARDS
THE IPHONE WAS INTRODUCED.
THINGS ARE CHANGING AT A RAPID
PACE AND SO WHEN I CAME BACK I
PARTNERED WITH WITH- FORMER
MAJORITY LEADER IAN CALDERON IN
LOOKING AT TECHNOLOGY
TECHNOLOGICAL ISSUES FACING THE
STATE. THAT OFTEN ARE NOT THE
PART OF THE DISCUSSION WE HAVE
BECAUSE ARE NOT YET ADOPTED BY
INTEREST GROUPS. AND IT'S
CHALLENGING TO INVENT THE
FUTURE. AND SO WE BOTH EMBARKED
ON THIS DISCUSSION F
BLOCKCHAIN. WEEK PASSED IN THIS
LEGISLATURE THE GOVERNOR SIGNED
SOME YEARS AGO A BILL WITH A
BILL THAT'S RELATED TO THIS
MEASURE THAT WE HAVE HERE TODAY
WHICH BY THE WAY I'M TAKING THE
AMENDMENTS ON ON. THAT THAT
AUTHORIZED BLOCKCHAIN. TO BE
USED FOR SHAREHOLDERS IN A
SMALL PART OF THE HELD
CORPORATIONS WE FOUND. THAT
OFTEN IN BANKING TRANSACTIONS.
WHEN CENTER BRADFORD IS HERE
BEFORE WHEN THIS WAS PRESENTED
WHEN HE WAS SHARE. WHERE WE HAD
FRAUD IN CASES WHERE SOMEONE
CAME IN. A DOCTORED UP A
RESOLUTION AND OPEN UP A BANK
ACCOUNT NOW WITH THE RELAY
JUROR FOR SHAREHOLDING INTEREST
IT'S IT BECOMES IMPOSSIBLE TO
DO THAT. AND SO WE DID THAT AND
THEN SUBSEQUENT TO THAT. WHICH
IS RELATED TO THIS LEGISLATION
SENATOR EXCUSE ME MAJORITY
LEADER CALDERON A NIGHT OF
CREATED TO LEGISLATION ADOPTED.
BY BOTH HOUSES AND SIGNED BY
THE GOVERNOR. A CALIFORNIA
BLOCKCHAIN GROUP WORKING GROUP
THAT WE WERE BOTH PART OF THE
IMPACT OF THAT WORKING GROUP
WAS TO BRING EXPERTS TOGETHER.
AND HELP DEFINE WHAT BLOCKCHAIN
IS THAT DEFINITION IS INCLUDED
HERE IN THIS MEASURE AS A
RESULT OF THAT HOMEWORK. IS A
DECENTRALIZED DATA SYSTEM. I
JUST WANT TO SHOW YOU KNOW A
COUPLE OF THOUGHTS AND ALL.
WILL MAKE IT MUCH LONGER.
BROCHURE THREE QUOTES THAT HELP
INFORM THE CHALLENGES THAT WE
FACE. I THINK THERE'S A WORLD
MARKET FOR MAYBE FIVE COMPUTERS
THOMAS WATSON CHAIRMAN IBM
NINETEEN FORTY THREE. IF I WERE
RUNNING APPLE I WOULD MELT THE
MACINTOSH FOR ALL IT'S WORTH
AND GET BUSY ON THE NEXT THING
THE PC WARS ARE OVER BY WE'RE
STEVE JOBS I WOULD SHUT DOWN
APPLE AND GIVE THE MONEY BACK
TO THE SHAREHOLDERS MICHAEL
DELL CHAIRMAN AND CEO OF DELL
COMPUTERS NINETEEN NINETY
SEVEN. THERE'S NOT A CHANCE
THAT THE IPHONE IS GOING TO GET
ANY SIGNIFICANT MARKET SARE NO
CHANCE THE CEO OF MICROSOFT.
TWO THOUSAND AND SEVEN. THE
BOTTOM LINE IS THAT THERE ARE
THINGS SOMETIMES AT WORK AND
DON'T WORK. BUT WE'RE
CALIFORNIA WE'VE GOT TO BE ON
THE CUTTING EDGE AND SO WHAT
WE'RE DOING WITH THIS MEASURE
VERY BRIEFLY IS ONE WITH THE
COMMITTEE MOMENTS EXTENDING.
THIS MEASURE THAT WE ADOPTED A
FEW YEARS AGO RELATING TO
SHAREHOLDING CORPORATIONS BY
FIVE YEARS. FURTHER DELAY WAS
WE KIND OF TOOK A HIATUS IN
WORKING ON THE- ON THE WORKING
GROUP. AND SECONDLY TO
INCORPORATE THE DEFINITION OF
DECENTRALIZED DATA SYSTEMS.
WHICH IS THE DEFINITION THAT
CAME OUT OF THE HARD WORK. OF
THE BLOCKCHAIN WORKING GROUP AS
A RESULT OF LEGISLATION PASSED.
SO I WOULD ASK YOU AYE VOTE AND
BUT MOST IMPORTANTLY I THINK.
HE DOES WE DEAL WITH ISSUES
EVERY DAY WAS SOCIAL CHALLENGES
WITH THE SOCIAL CONTRACT. FOR
THE RICH POOR DIVIDE THAT
OCCUPIES MY THINKING
TREMENDOUSLY. IT'S IMPORTANT TO
LOOK AT THESE CUTTING EDGE
IDEAS TO FIGURE OUT WHAT TO DO
WITH THE PRIVATE SECTOR HAS
DONE EXTRAORDINARY THINGS.
GROCERY PROVIDERS ARE USING
BLOCKCHAIN TO TRACE. FOOD TO
LOOK FOR CONTAMINATION OR
ILLNESS- THE PRIME MINISTER OF
AND I WANT TO WHO I. MET WITH
HIS USING BLOCKCHAIN TO RECORD
ALL REAL ESTATE TRANSACTIONS TO
AVOID FRAUD- YOU KNOW YOU SEE
THESE IBM COMMERCIALS ON TV
USING BLOCKCHAINS TO TRACE. WE
DON'T KNOW ULTIMATELY WHAT IS
GOING TO BE ABOUT RIGHT NOW ITS
CRYPTOCURRENCY INS LARGE
MEASURE THE INTERNET WAS
LARGELY **** WHEN IT STARTED
OUT. AND IT'S BECOME A
FUNDAMENTAL ELEMENT TARA
TRAINER KIDS AT HOME AS WE FACE
THIS PANDEMIC CHALLENGES AND SO
MANY MORE THINGS THAT RELATE TO
OUR SOCIETY. SO WE'RE
CALIFORNIA WE INVENT THE FUTURE
AND THIS IS JUST ONE SMALL
STEP. IN SOMETHING WHERE WE I
THINK WE SHOULD HAVE THE
DISCIPLINE. AS A LEGISLATURE
NASA GOVERNMENT TO LOOK INTO
THE EYES OF THE FUTURE AND
DOING EVERYTHING WE CAN TO TRY
TO HELP GUIDE AND INVENTED I
HAVE THREE SUPPORTERS MEASURE.
YEAH WE HAVE A WITNESS ON THE
LINE A MANAGER. THREE THANK YOU
SENATOR HERTZBERG WE WILL NOW
MOVE ON TO WITNESSES TESTIFYING
IN SUPPORT WE HAVE. BRINLEY
LEARN. FROM THE BLOCKCHAIN
ADVOCACY COALITION ON THE LINE.
THANK YOU SO MUCH IT'S
FRIENDLIER AND I COULDN'T AGREE
MORE THAT WE ARE CALIFORNIA AND
WE ARE HERE TO INVENT THE
FUTURE. MY NAME IS BRITNEY
LAYER I'M AN ATTORNEY IN THE
TECH AND BLOCKCHAIN SPACE
PRACTICING LINE CALIFORNIA FOR
NEARLY TWO DECADES I'M GENERAL
COUNSEL AT SEALAB A BLOCKCHAIN
COMPANY ADDRESSING FINANCIAL
INCLUSION. AND I TAKE PRIDE IN
BEING A PART OF A CALIFORNIA
COMPANY. I'M ALSO AS YOU
MENTIONED A MEMBER OF THE
BLOCKCHAIN ADVOCACY COALITION.
I PERSONALLY IN CAL SUCCESS AS
AN INNOVATIVE ECONOMY I MOVED
HERE OVER TWENTY FIVE YEARS AGO
I COMPLETED COLLEGE IN
CALIFORNIA I ATTENDED BERKELEY
LAW AND MY THREE CHILDREN
INCLUDING MY FOSTER DAUGHTER
ALL BENEFIT FROM OUR PUBLIC
EDUCATION AND INNOVATION HERE.
WELL THERE'S BEEN MUCH MEDIA
COVERAGE RELATED TO ATTACK
ACCIDENTS I BELIEVE AS A
PROFESSIONAL AND AS A
CALIFORNIANS ARE PAST AND
FUTURE IS TO BE A GLOBAL LEADER
IN BOTH TECHNOLOGY AND POLICY.
THIS IS WHY I AM VERY PLEASED
TO TESTIFY IN SUPPORT OF SB SIX
THIRTY EIGHT. OPENLY ENABLING
BLOCKCHAIN TECHNOLOGY TO BE
USED IN RECORDING STOCK
ISSUANCES AFTER CALIFORNIA'S
POSITION IN FAVOR OF
RESPONSIBLE INNOVATION USING
BLOCKCHAIN TECHNOLOGY.
RECORDING STOCK ISSUANCES USE
CASE THAT WORKS ESPECIALLY WELL
WITH BLOCKCHAIN AND IT
DEMONSTRATES THAT CALIFORNIA
WILL CONTINUE TO SUPPORT AND
EVEN CHAMPION NEW TECHNOLOGY.
DEFINING BLOCKCHAIN IS A
BUILDING BLOCK TO CREATING A
CLEAR FRAMEWORK FOR BUSINESS IN
OUR STATE WE THINK THE
DEFINITION HAS THE APPROPRIATE
BALANCE ALLOWING TECHNOLOGY TO
A FAULT WELL PRISON GUARD RAIL
AROUND WHAT IS ACCEPTABLE.
KEEPING THE DEFINITION OF
BLOCKCHAIN IN CODE FOR ANOTHER
FIVE YEARS PROVIDE IMPORTANT
REGULATORY CLARITY FOR
BUSINESSES LIKE HE LAUGHED THAT
OFFER TOOLS FOR FINANCIAL
INCLUSION AND IN ADDITION
PNEUMATIC WHICH SAFELY VERIFIED
PATIENT IDENTITY AND SWEETS
AND- THAT IS PILOTING
BLOCKCHAIN BASED GROUNDWATER
GROUNDWATER TRADING IN SOLANO
COUNTY. I WE AT THE BLOCKS
ADVOCACY COLD WE TRULY
APPRECIATE CENTER HERTZBERG.
AND HE CONTINUES TO BE A LEADER
IN THIS SPACE AND IT GOES SUCH
A LONG WAY TO SUPPORTING
INNOVATIONS AND INVESTMENT IN
CALIFORNIA'S LONG TERM
LEADERSHIP I THINK TECHNOLOGY
CAPITAL AND COUNTRY IN THE
WORLD. THANK YOU SO MUCH THANK
YOU. NOW LET'S BEGIN WITH ANY
WITNESSES IN THE GALLERY. SEE
NO WITNESSES IN THE GALLERY WE
WILL MOVE TO WITNESSES IN ROOM
ONE TWELVE ARE THERE ANY
WITNESSES IN ROOM ONE TWELVE
WHO WISH TO TESTIFY IN SUPPORT
OF SB SIX. THREE EIGHT. SEEN
NOW WITNESSES IN ROOM ONE
TWELVE WE WILL NOW MOVE ON TO
WITNESSES IN SUPPORT VIA
TELECONFERENCE. ARE THERE ANY
WITH MODERATOR ARE TERE ANY
WITNESSES IN SUPPORT OF SB SIX
THREE ON THE LINE. IF YOU WOULD
LIKETO SHOW SUPPORT TODAY
UNTIL SB SIX THREE EIGHT PLEASE
PRESS ONE FOLLOWED BY THE ZERO
ON YOUR TOUCH TONE PHONE. NAY
T. T. OPERATOR WILL GIVE YOUR
LIGHT NUMBER PLACE YOU BACK
INTO THE QUEUE. SO AGAIN IF YOU
WOULD LIKE TO TESTIFY IN S. B.
SIX THREE. EIGHT PLEASE PRESS
ONE ZERO AT THIS TIME. MADAM
CHAIR THERE ARE NO PARTICIPANTS
QUEUING UP AT THIS TIME. THANK
YOU VERY MUCH WE WILL NOW MOVE
INTO WITNESSES IN OPPOSITION WE
HAVE NO- THAT WITNESSES
OPPOSITIONS IDENTIFIED FOR
TESTIMONY DO WE HAVE ANY
WITNESSES IN OPPOSITION IN THE
GALLERY. SCENE NINE WE WILL
MOVE TO ANY WITNESSES IN
OPPOSITION IN ROOM. ONE TWELVE.
C. NG NINE THAT WE WILL MOVE TO
WITNESSES IN OPPOSITION VIA
TELECONFERENCE SERVICE
MODERATOR IF YOU WOULD PLEASE
PROP TO ANY INDIVIDUALS WANTING
TO TESTIFY IN OPPOSITION OF SB.
SIX THREE. THANK YOU IF YOU
WOULD LIKE TO TESTIFY IN
OPPOSITION TO SB SIX THREE
EIGHT PLEASE PRESS ONE FOLLOWED
BY ZERO AT THIS TIME. ONE FILED
BY. ZERO MADAM CHAIR THERE'S
NOBODY QUEUEING UP AT THIS TIME.
THANK YOU MODERATOR WE WILL NOW
BRING THE DISCUSSION BACK TO
MEMBERS MEMBERS DID IS ANYBODY
HAVE ANY QUESTIONS OR COMMENTS.
WE HAVE SENATOR JOSTLE YES I
HAVE A QUESTION FOR THE AUTHOR.
I WOULD LIKE IF YOU COULD-
RESPOND TO THE ISSUE OF THE
LINKS OF THE SUN SAID WHETHER
IT'S A PERMANENT SUNSET. OR
LESS THAN PERMANENT SUNSET
BECAUSE OF. AGAIN AS HE SAID
THIS IS AN ONGOING PROCESS AND-
JUST WANT TO HEAR YOUR RESPONSE
TO THAT THANK YOU VERY MUCH
EVIDENCE OF THE QUESTION YEAH
WE ACTUALLY DIDN'T HAVE A
SUNSET IN THE BILL ORIGINALLY
AND TOOK THE MEMBERS OF THE
COMMITTEE TO MAKE IT FIVE
YEARS. AND WILL KEEP REVISITING
AND SEE WE LEARNED WAS WE GROW
AND GET BETTER AND YOU KNOW
FIGURE OUT OF THE BLOCKCHAIN
STUFF THAT'S KIND OF THE GIVE
AND TAKE OF THE PROCESS BUT
IT'S FIVE YEARS. AT ANY MOMENT.
THANK YOU ANY ADDITIONAL
MEMBERS WITH QUESTIONS OR
COMMENTS. CNN WE WILL TAKE A
MOTION. THE MOVE SOME OF ITS
MOVED BY SENATOR DO ROSTO
CENTER HERTZBERG WOULD YOU LIKE
TO CLOSE THE DISTRIBUTOR WANTED
TO BUY THANK YOUR STAFF YOU
KNOW MARK MY PEOPLE IN MY
OFFICE SAY THAT THEY'VE DONE A
FANTASTIC JOB. VERY GOOD TO
WORK WITH ON THIS AND OTHER
MATTERS AND SO I APPRECIATE
THAT VERY MUCH SO IT WAS
IMPORTANT RECOGNIZE THEM AND I
LEE KNEW ALL WHO FOR MANY YEARS
SERVE THIS COMMITTEE AND IS
RETIRED AND LAST YEAR WHEN WE
WERE WORKING WITH CENTER
BRADFORD ECONOMIC RECOVERY
STUFF WAS JUST A ROCKSTAR TO
THE EXTREME AND WORKS SO HARD
SO. AND THOSE WE HAVE BEFORE
THE COMMITTEE BUT I JUST WANT
TO THANK EVERYBODY THAT'S
RIGHT. THANK YOU VERY MUCH
SENATOR HERTZBERG. THE MOTION
SO I WILL HAVE- THE MOTION IS
DUE PASSED AS AMENDED BUT FIRST
AMEND AND RE REFER TO THE
COMMITTEE ON JUDICIARY. CAN WE
PLEASE CALL THE ROLL. THE
MOTION IS TO PASS A MINUTE BUT
FIRST DEMANDED BE REFERRED TO
COMMITTEE ON JUDICIARY. LOAN HI
LIMON. LOW TELEVOTE FINE UNTIL
BOTH BRADFORD ALL RIGHT
BRADFORD ALL RIGHT CABALLERO
HI. CABALLERO DALY. BY THE
NIGHT. I RUSSELL HI WHAT UP.
MAN HI MAN HI PORTANTINO HI
PORTANTINO HI. THE BILL HAS
EIGHT VOTES IN SUPPORT- IT DOES
MOVE FORWARD AND WILL LEAVE THE
ROLE OPEN FOR ADDITIONAL
MEMBERS TO ADD ON NEXT I WILL
BE PRESENTING A BILL AND WE
WILL HAVE VICE TERRACE A CHOI
BOGUE. I WILL BE PRESIDING.
GOOD MORNING GERMAN LIMON WE
ARE READY TO YOUR PRESENTATION
ON SB FOUR NINETY SEVEN THANK
YOU THANK YOU VICE CHAIR AND
MEMBERS SENATE BILL FOUR NINE
SEVEN IT WILL CLOSE A LOOPHOLE
THAT ALLOWS NON BANK ENTITIES
SUCH AS PREPAID CARD USERS FROM
CHARGING OVERDRAFT FEES ON
ACCOUNTS FOR INDIVIDUALS
RECEIVING PUBLIC ASSISTANCE
UNEMPLOYMENT COMPENSATION FOR
CHILD SUPPORT PAYMENTS
DISTRIBUTED BY THE STATE
CURRENT LAW PROTECTS RECIPIENTS
OF PUBLIC ASSISTANCE INCLUDING
UNEMPLOYED WORKERS FROM FEES
THAT SIGNIFICANTLY REDUCE THE
FUNDS BY SETTING DIRECT DEPOSIT
REQUIREMENTS FOR QUALIFYING
ACCOUNTS. HOWEVER TO KEEP
CHARGING OVERDRAFT FEES CERTAIN
NONBANK PREPAID CARD PROVIDERS
HAVE STARTED TO OFFER SO CALLED
THE BANK ACCOUNTS THAT DO NOT
COMPLY WITH FEDERAL AND
CALIFORNIA RULES FOR PREPAID
ACCOUNTS THESE FAKE BANK
ACCOUNTS WHICH ARE SOLD BY
ALTERNATIVE FINANCIAL SERVICES
PROVIDERS ARE DESIGNED TO
ENCOURAGE OVERDRAFT FEES THAT
PUT LOW INCOME CONSUMERS IN A
VULNERABLE AN ENDLESS CYCLE OF
DEBT SB FOUR NINE SEVEN WILL
PREVENT NON BANK PRE PART
PREPAID CARD COMPANIES FROM
EVADING CALIFORNIA AND FEDERAL
LAWS BY RE LABELING THEIR
PREPAID CARDS AS DEBIT CARDS IN
ORDER TO CHANGE OVER DRAFT FEES
ON CONSUMERS RECEIVING PUBLIC
ASSISTANCE. THIS BILL CLOSES AN
IMPORTANT LOOPHOLE THAT WILL
PROTECT VULNERABLE FAMILIES
ENSURE STATE FUNDS ARE USED
APPROPRIATELY AND EFFICIENTLY
AND MAKE IT CLEAR THAT PUBLIC
ASSISTANCE SHOULD NOT BE
SUBJECT TO OVERDRAFT FEES.
THANK YOU. THANK YOU M. CENTER
TO THE MOBILE BEER WILL NOW
MOVE ON TO ANY WITNESSES
WISHING TO TESTIFY IN SUPPORT
WE HAVE LAURA SANDERS ON THE
LINE WITH NATIONAL CONSUMER LAW.
THANK YOU HELLO I AM LAWRENCE
UNDER ASSOCIATE DIRECTOR OF THE
NATIONAL CONSUMER LAW CENTER.
THE NATIONAL CONSUMER LAW
CENTER WORK FOR ECONOMIC
JUSTICE FOR LOW INCOME AND
VULNERABLE CONSUMERS. I MYSELF
HAD TO WORK ON PREPAID CARDS
AND FOR MANY MANY YEARS. AT THE
NATIONAL CONSUMER LAW CENTER IS
PROUD TO SPONSOR THE FOUR
NINETY SEVEN- WHICH WILL SIMPLY
CLOSE THE LOOPHOLE IN EXISTING
CALIFORNIA LAW THAT ALLOWS NON
BEING PREPAID CARD COMPANIES TO
REMAIN CALIFORNIA LIVE THAT FOR
HIM IT OVER CRAPPIE ON PREPAID
CARDS. RECEIVE PUBLIC
ASSISTANCE UNEMPLOYMENT
COMPENSATION FOR STATE
pPAYMENTS. THE BILL WILL ENSURE
THAT STATE FUNDS GO FOR THEIR
INTENDED PURPOSE SUPPORTING
FAMILIES IN NEED AND ARE NOT.
GREEN DOT I SEE. IN TWENTY
THIRTY AND TWENTY FOUR. HELLO
ADOPTED FOR TO CREATE CARDS.
DEBIT THE STATE BY OUR DIRECT
DEPOSIT. THE LEAD ONLINE CAL
LONGER THE TREE OF THESE. WITH
BETTER PROTECT WHICH ALSO THREE
OVER FEES ON PREPAID CARDS USED
TO RECEIVE. BUT AFTER THE THIRD
COULD FINANCIAL PROTECTION
BUREAU ADOPTED PREPAID CARD
RULES THAT EFFECTIVELY
PROHIBITED OVERDRAFT FEES ON
PREPAID CARDS. SO I'M NOT NON
BASED PREPAID CARD COMPANIES
BEGAN TO RE LABELING THEIR
PREPAID CARDS AND DEBIT CARD OR
BANK ACCOUNT. SO THAT THEY CAN
AVOID THE PREPAID CARD LITTLE
AND PETITE CHARGING OVERDRAFT
THE- IN A WAY THAT WOULD NOT
PERMITTED UNDER THOSE RULES. SB
FOUR NINETY SEVEN SIMPLY MAKE
TECHNICAL CHANGES TO EXISTING
LAW TO PREVENT NON BANK PREPAID
CARD COMPANIES ROTATING
CALIFORNIA LAWS RESTRICTING
OVER GRASS SEED ON PREPAID
CARDS MUSIC HE'S FACED. THE
BILL WILL PROTECT VULNERABLE
FAMILIES AND ENSURE THAT STATE
FUNDS ARE USED APPROPRIATELY
AND EFFICIENTLY. RESPECTFULLY
ASK FOR YOUR I. BUILT ON THE
CONCORDANCE ECONOMIC JUSTICE
AND FAMILY LEGISLATION THANK
YOU. THANK YOU MISS SANDERS FOR
YOUR TESTIMONY TODAY NOW LET'S
BEGIN WITH ANY WITNESSES HERE
IN THE GALLERY. WE HAVE ANY
WITNESSES IN THE GALLERY. C.
NINE ARE THERE ANY WITNESSES IN
ROOM ONE TWELVE WHO WISH TO
TESTIFY IN SUPPORT OF SB FOUR
NINE SEVEN. COENEN. THANK YOU
WILL NOW MOVE ON TO WITNESSES
WAITING TO TESTIFY VIA THE
TELECONFERENCE ORVIS MODERATE
IF YOU WOULD PLEASE PROMPT
INDIVIDUALS WAITING TO TESTIFY
IN SUPPORT OF SB FOUR NINETY
SEVEN WE WILL BEGIN. THANK YOU
MEDICARE IF YOU WOULD LIKE TO I
TESTIFIED IN SUPPORT OF SB FOUR
NINETY SEVEN. PLEASE PRESS ONE
FOLLOWED BY THE ZERO AT THIS
TIME. WE DO HAVE A COUPLE
PARTICIPANTS QUEUED UP AND
WE'LL GO TO LINE TWENTY THREE
PLEASE GO AHEAD. MORNING TERM
MEMBERS THREATEN ON BEHALF OF
THE CENTER FOR RESPONSIBLE
LENDING IMPORT. THANK YOU THANK
YOU AND IT WILL GO TO LINE
TWENTY YOUR LINE IS OPEN.
TRIMMER'S CATALINA SANCHEZ THE
CORBIN AND HIDE THEIR ON BEHALF
OF THE CALIFORNIA LOW INCOME
CONSUMER COALITION AND SUPPORT
THANK YOUNG. THANK YOU AND AS A
FINAL REMINDER TO SHOW YOUR
SUPPORT ON S. B. FOUR NINE
SEVEN. PLEASE PRESS ONE
FOLLOWED BY ZERO AT THIS TIME.
THANK YOU MODERATOR KEY PLEASE
GIVE ME THE TOTAL NUMBER OF
PEOPLE WANTING TO WAITING TO
TESTIFY IN SUPPORT PLEASE.
THERE ARE NO OTHER PARTICIPANTS
QUEUING UP AT THIS TIME
MEDICARE. THANK YOU WOULD YOU
MIND TAKING JUST ONE MORE TIME
TO MAKE SURE IN THIS FIRST UP
AND WE DO NOT AVE OTHER AT
PEOPLE WAITING. IN SUPPORT OF
COURSE. OF COURSE THANK YOU
LADIES DOWN AGAIN IF YOU WOULD
LIKE TO SPECIAL SUPPORT ON S.
B. FOUR NINE SEVEN PLEASE PRESS
ONE FOLLOWED BY ZERO AT THIS
TIME. AND MEDICARE NOBODY IS
QUEUING UP. THANK YOU MODERATOR
HAVE YOU HEARD FROM ALL
SUPPORTERS WILL NOW FOLLOW THE
SAME PROCESS AND HEAR FROM ANY
OPPOSITION. WE HAVE NO
IDENTIFIED OPPOSITION FOR
PREPARED TESTIMONY LET'S MOVE
TO ANY WITNESSES HERE IN THE
GALLERY. C. NINE ARE THERE ANY
WITNESSES IN ROOM ONE TWELVE
WHO WAS TESTIFYING OPPOSITION
OF SB FOUR NINE SEVEN. SEEING
NONE. THANK YOU WILL NOW MOVE
ON TO THE WITNESSES WAITING TO
TESTIFY THE OTHER
TELECONFERENCE ORVIS MISTER
MODERATOR IF YOU WOULD PLEASE
FROM THE INDIVIDUALS WAITING TO
TESTIFY IN OPPOSITION SB FOUR
NINETY SEVEN WE WILL BEGIN. TO
TESTIFY IN OPPOSITION OF SB
FOUR NINE SEVEN PLEASE PRESS
ONE FOLLOWED BY ZERO AT THIS
TIME. AGAIN TO TESTIFY IN
OPPOSITION FOR SB FOUR NINE
SEVEN PLEASE PRESS ONE FOLLOWED
BY ZERO. THANK YOU LETTER
WRITER CAN YOU PLEASE GIVE ME
THE TOTAL NUMBER OF PEOPLE
WAITING TO TESTIFY IN
OPPOSITION PLEASE THERE ARE NO
PARTICIPANTS QUEUED UP AT THIS
TIME MEDICARE. THANK YOU
MODERATOR. IF YOU WOULD PLEASE
CHECK ONE MORE TIME TO ENSURE
THAT WE DO NOT HAVE ANYONE
WAITING TO TESTIFY IN
OPPOSITION. THANK YOU AT THE
FINAL ROUTE AS A FINAL REMINDER
LADIES AND GENTLEMEN PLEASE
PRESS ONE FOLLOWED BY ZERO TO
TESTIFY IN OPPOSITION. ON BILL
S. B. FOUR NINE SEVEN. AND WE
ARE HAVING ALL PARTICIPANTS
QUEUE UP AT THIS TIME. THANK
YOU MR MODERATOR. THANK YOU TO
ALL OUR SUPPORT AT WITNESSES
WILL NOT BRING THE DISCUSSION
BACK TO OUR MEMBERS DO ANY OF
OUR MEMBERS HAVE ANY QUESTIONS
OR COMMENTS. THE NINE. CENTER
EARLY MON WOULD YOU LIKE TO
CLOSE I RESPECTFULLY ASK FOR AN
AYE VOTE. THANK YOU SENATOR
LIMON DO WE HAVE A MOTION ON SB
FOUR NINE SEVEN. SENATOR
CABALLERO WE HAVE A MOTION FROM
SENATOR KABIR THANK YOU. THE
MOTION IS TO PASS AS A MINUTE
BUT FIRST BE RE REFER TO THE
COMMITTEE ON JUDICIARY
CONSULTANT PLEASE CALL THE ROLL.
EGGMAN. CORRECTION PLEASE. THE
MOTION IS TO PASS AS AMENDED
BUT PERSON FIRST BE REFERRED TO
THE COMMITTEE ON HUMAN SERVICES
CONSULTANT PLEASE CALL THE ROLL.
THE MOTION IS DUE PASSED THE
FIRST BE RE REFER TO THE
COMMITTEE ON HUMAN SERVICES.
LAMONT HI LIMON HI PHOTO OF. A
TERRIBLE- SHE BRADFORD ALL
RIGHT BRADFORD CABALLERO HI
CABALLERO DALY. HI DALY DURAZO
HI. THE RUSSELL I WAS SO. MAN
ARE MEN HIGH COURT. THIS WE
HAVE SEVEN I USE AND I BELIEVE
WE HAVE SOME OF MEMBERS WHO ARE
AT- NOT HERE AT THE MOMENT SO
WE WILL WITH THE THANK ROLL
CALL OPEN FOR MEMBERS TO HAVE
AN OPPORTUNITY TO VOTE AT AND
AT A LATER TIME. THANK YOU.
THANK YOU MADAM VICE CHAIR. NOW
WE WILL MOVE ON TO- WELCOME
SENATOR WILL CAO SKI WHO IS
GOING TO PRESENT SB FIVE THIRTY
ONE FEEL FREE TO PROCEED MORE
MANAGER I WOULD LIKE TO WELCOME
YOU TO THE CAPITAL GOOD TO SEE
YOU. MEMBERS OF. THIS IS A
DISTINCTION BETWEEN A SIGNED
AND THEN ASSAULTED I'D LIKE TO
FIRST START OFF TO ACCEPT THE
MEMBER OF THE PROPOSED
COMMITTEE AMENDMENTS ARE
OUTLINED IN YOUR- BILL
ANALYSIS. AT ITS CORE SB FIVE
THREE ONE IS THE- IT'S ABOUT
BASIC RECORD KEEPING
TRANSPARENCY AND PROTECTION FOR
CONSUMERS THAT HAVE DEBT IN TWO
THOUSAND THIRTEEN MANY OF YOUR
MEMBERS WHO WERE HERE IN THE
LEGISLATURE TO TIME VOTED FOR
THE FAIR DEBT. BUYING PRACTICES
ACT THAT THAT MEASURE DID NOT
RECEIVE A NO VOTE PASSED
THROUGH BOTH HOUSES AND IT
BROUGHT MUCH NEEDED REFORM TO
LARGELY UNREGULATED BROKEN
SYSTEM DEADLINE HERE IN THE
CITY CALIFORNIA THERE WERE
WIDESPREAD CASES OF COLLECTING
DEBTS AGAINST THE WRONG PEOPLE
TARGETING THE DEBT THAT ALREADY
BEEN PAID OFF AND EFFORTS TO
COLLECT THE INCORRECT AMOUNTS.
SO THAT FIGURE DEADLINE
PRACTICE PRACTICES ACT HELP TO
ADDRESS THESE ISSUES BY
REQUIRING DEBT BUYERS WHO HAVE
BAD DEBT SOLD TO THEM THEY HAVE
PROVED THAT BUT THEIR OWNERSHIP
IN IT TO ALLOW THE DEBTOR TO
REQUEST THAT PROOF THAT THEY
ACTUALLY HAVE THE RIGHT TO
COLLECT ON THE DEBT. TOLD THE
LAW ALSO REQUIRED THE
DISCLOSURE THE BASIC
INFORMATION MISSION SUCH AS HOW
MUCH DEBT IS OWED ANY FEES OR
INTEREST. AND THE DATE OF THE
LAST PAYMENT. SO WITHOUT IT
EVER WAS HAPPY AND THEN AND
FOR. THIS BILL REPORTS FROM
LEGAL SERVICES THAT DEBT
COLLECTORS ARE GOING OUT OF
THEIR WAY TO ASSERT THAT. THEY
ARE COLLECTING ON A DEBT THAT
IS A SIGN TODAY I'M NOT SOLD TO
THEM. AND BECAUSE THE DEBT IS
NOT BEING SOLD THE DEBTOR'S
RIGHTS AND PROTECTIONS THAT ARE
JUST TALK ABOUT UNDER THE FAIR
DEBT BUYING. PROTECTION S. ARE
BEING CIRCUMVENT SO. THE
COLLECTOR'S WE'RE FINDING THAT
ARE TARGETING THE WRONG DEBTORS
THE COLLECTING AND INCORRECT
AMOUNT ALL THE SAME HILLS AT
WORK OCCURRING B- AND- THIRTEEN
AND- SO THE HIGHER. THE NEED TO
ADDRESS THIS ISSUE THE BUREAU
OF CONSUMER FINANCIAL.
PROTECTION FOUND THAT FROM
200-016-2000 SEVENTEEN THAT ONE
YEAR ATTEMPTS TO COLLECT. DEBT
THE COURT DID NOT WHO WAS THE
NUMBER ONE COMPLAINT IN THE
CITY CALIFORNIA ROVER THREE
THOUSAND SEVEN HUNDRED ELEVEN.
COMPLAINTS JUST ON THAT AND
THOSE WITH THE COMPLAINTS THAT
PEOPLE REPORTED THERE WERE
OTHERS SO THE BILL IN FRONT OF
YOU WOULD REQUIRE DEBT
COLLECTORS. WHO HAVE DELINQUENT
DEBTS ASSIGNED TO THEM TO HAVE
TO PROVE THAT THEY HAVE THE
AUTHORITY TO COLLECT ON THE
DEBT. THE DEBT WOULD GIVE THE
CONSUMER WHO WE REPRESENT THE
RIGHT TO REQUEST STEP PROOF
ALONG WITH OTHER BASIC
INFORMATION REGARDING THE DEBT.
AND THESE RIGHTS ARE THE SAME
RIGHTS AS THOSE THAT
ARTICULATED THE FAIR DEBT
BUYING PRACTICES ACT. THE BILL
WILL ALSO REQUIRE THE SIMPLE
GOODBYE LETTER IS. SET FORTH IN
THE WHEN THE AMENDMENTS THAT
WE'RE TAKING IN OTHER WORDS THE
ORIGINAL CREDITOR MUST NOTIFY
THE CONSUMERS TO WHOM THEY WILL
BE SELLING A SIGN THAT YET. AND
ALONG WITH THE REMAINING
BALANCES THEY SAY GOODBYE. TO
THIS INSURES THE DEBTORS ARE
MORE LIKELY TO BE OPEN AND
BELIEVE THAT MESSAGE THAT THEY
GET- RATHER THAN BE TOLD BY
SOME THIRD PARTY THAT THE NEVER
HEARD BEFORE IN THEIR LIFE THAT
THEY OWE SOME MONEY. AND WITH
ALL THE TELEPHONE SCAMS AND
OTHER SUSPICIONS OF FRAUD IS
JUST A GOOD CONSUMER PROTECTION
SO. IT'S COMMONSENSE SOLUTION
TO THE PROBLEM- AND I HOPE THAT
PEOPLE. IT'S A BILL THE PEOPLE
NEVER HAVE TO OF. OF IN FORCE
AND WITH THATI HAVE LADY
FERRON. WITH THE PUBLIC
LAWCENTER MADAM CHURCHES. TO
FIND SUPPORT. THANK YOU SENATOR
MCCAIN. WE WILL NOW MOVE ON TO
WITNESS TO SOME AND- SERVER
PREPARED TESTIMONY WE DO HAVE A
LEAF FERRON WITH THE PUBLIC
LAWCENTER MODERATOR. DO WE HAVE
THE WITNESS USE YOUR LINE
SHOULD BE OPEN PLEASE GO AHEAD
AND ON WITH YOUR OWN PHONE IF
YOU ARE TESTIFYING. AS A
WITNESS. THANK YOU GOOD MORNING
YOUR HONOR WILL CHAIR AND
MEMBERS. MY NAME IS LI FAIR AND
I'M THE DIRECTOR OF LITIGATION
IN PRO BONO WITH THE PUBLIC
LAWCENTER WE ARE A NONPROFIT
ORGANIZATION THAT PROVIDES FREE
LEGAL SERVICES TO LOW INCOME
INDIVIDUALS AND ORANGE COUNTY.
I'M TESTIFYING TODAY IN SUPPORT
OF SB FIVE THIRTY ONE WHICH
WILL PROVIDE ADDITIONAL
PROTECTION FOR CALIFORNIA
CONSUMERS WHO ARE DEALING WITH
THAT COLLECTION ACTIVITY. AND I
CAN BE MY LAW PRACTICE FIELD HE
WORKED EXTENSIVELY WITH LOW
INCOME LOW INCOME CONSUMERS TO
EMPATHY COLLECTION LETTERS FROM
OUR HAT. WHO HAPPENED TO BY
DEBT COLLECTORS. ONE O THE
FIRST QUESTIONS WE ASK WHETHER
OR NOT THE PLAINTIFFS IN
MILLION WITH THE DEBT
COLLECTOR. MOST IF NOT ALL OF
THE TIME OUR CLIENTS THEY KNOW
THEY HAVE NEVER HEARD OF THEM.
DEPENDING ON THE INFORMATION
PROVIDED IN THE COLLECTION
LETTER OR IN THE LOT AFTER SOME
INVESTIGATION HE'LL BE TAPPED
IN ATTORNEYS ARE USUALLY ABLE.
TO DETERMINE THE ORIGINAL
CREDITOR AND IDENTIFY. THE
ACCOUNT THAT THE DEBT COLLECTOR
COLLECTING. BECAUSE SO MANY
DONE BETTER UNDER. ABOUT ANY
THAT MANY HOW. ARE STUCK NOW.
THE COMPLEX NETWORK AND DEBT
COLLECT IN THE I NEED ON THEIR
OWN. AND MAY NEVER BE CONFIDENT
THAT A DEBT COLLECTOR IT'S
COLLECTING A DEBT THAT THEY
ALSO. WHAT WE DO NOW. WITH OUR
CLIENTS YOU KNOW WHO THEIR
ORIGINAL CREDITORS ARE. THEY'RE
MUCH MORE LIKELY TO RECEIVE
MAIL SENT BY THE ORIGINAL
CREDITOR OR OTHER MESSAGES. SB
FIVE THIRTY ONE WILL REQUIRE
THE ORIGINAL CREDITOR TO
PROVIDE THE INFORMATION OF THE
ENTITY THAT WILL BE COLLECTING
THE DATA. WILL ALLOW DEBTORS TO
BETTER UNDERSTAND THE PROCESS
OF DEBT COLLECTION. AND WILL
ALLOW THEM THE OPPORTUNITY TO
RESOLVE THEIR DEBT MUCH EARLIER
IN THE PROCESS BEFORE EXCEPT.
BE THAN COSTA BEEN ADDED ON. IN
ADDITION WHEN I CLIENTS ARE
FACING. IN ON AND THE DAY
COLLECTOR TEMP ASSIGNED THE DAY
I SENATOR COUNTY MY- THIS IS
COMMON WITH HOSPITAL. AND BACK
WHEN THE COULD. WILL NOT SELL
THE DEBT WILL. THE RIGHT
COLLECT A THIRD PARTY TECHNICAL.
WHEN IT HAPPENED BUT- REQUIRED
AND DEFINE PRACTICE ACTING ON
APPLY. AN ADEPT DOES NOT HAVE
TO PROVIDE THE PAYMENT. WHICH
IS AND- BY THE WAY ON THE
IDENTIFIER DONE. AT THE THIRTY
ONE REQUIRE THE DECAL. BETTER
IF I AT WOULD HAVE TO PROVIDE
INFORMATION TO THE DATA BUDGET
THE NATURE OF THE UNDER. DATA
THE DATE DEPOT AT THE DATE A
LOT. THAT AND THE NAME AND
ADDRESS OF THE ORIGINAL. IN
ADDITION THE BILL WILL PREVENT
A DEFAULT JUDGMENT FROM BEING
ANSWERED WITH THIS INFORMATION
IS NOT INCLUDED IN A LAWSUIT.
CALIFORNIA BETTER SHOULD NOT
END UP WITH A DEFAULT JUDGMENT
FROM A DEBT COLLECTOR THAT
CANNOT EVEN TELL THEM THE
ORIGINAL CREDITOR AND- I DO
SUPPORT SB FIVE. THIRTY ONE THE
ORIGINAL THOUGHT. THINK YOU.
THANK YOU NOW LET'S BEGIN WITH
OTHER WITNESSES HERE IN THE
GALLERY SEE NO WITNESSES IN THE
GALLERY WE WILL MOVE TO
WITNESSES IN ROOM ONE TWELVE
WHO WISH TO TESTIFY IN SUPPORT
OF SB FIVE THREE ONE. SEE NO
WITNESSES IN ROOM ONE TWELVE WE
WILL NOW MOVE ON TO WITNESSES
WANTING TO TESTIFY VIA THE
TELECONFERENCE DISS. MODERATOR
IF YOU WOULD PLEASE PROMPT THE
INDIVIDUALS WANTING TO TESTIFY
IN SUPPORT OF SB FIVE THREE ONE
WE WILL BEGIN. THANK YOU MADAM
CHAIR IF YOU WOULD LIKE TO A
TESTIFIED IN SUPPORT OF SB FIVE
THREE ONE PLEASE PRESS ONE
FOLLOWED BY THE ZERO AT THIS
TIME. AGAIN IF YOU'D LIKE TO
TESTIFY IN SUPPORT OF SB FIVE
THREE ONE PLEASE PRESS ONE
FOLLOWED BY ZERO. AND OUR FIRST.
PERSON IS ONE TWENTY ONE PLEASE
GO AHEAD. GOOD MORNING CHEN
FLORI ON BEHALF OF WESTERN
CENTER ON LAW AND POVERTY
APOLOGIZE FOR GETTING OUR
LETTER IN LATE BUT WE ARE IN
SUPPORT. THANK YOU NEXT WILL
ALIGN TWENTY. REMEMBER TOTALING
AGAIN SAID WITH CORPORATE AND
KINDER ON BEHALF OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION AND SUPPORT THANK
YOUNG. THANK YOU AND AS A
REMINDER AT TO SHOW YOUR
SUPPORT IN ON SB FIVE THREE ONE
PLEASE PRESS ONE FOLLOWED BY
ZERO AT THIS TIME. MADAM CHAIR
NOEL OTHER PARTICIPANTS ARE
QUEUING UP AT THIS TIME. THANK
YOU HAVING HEARD FROM ALL THE
WITNESSES IN SUPPORT OF THE
BILL WILL NOW FOLLOW THE SAME
PROCESS TO HEAR FROM ANY
WITNESSES IN OPPOSITION. WE
HAVE TWO PRIMARY WITNESSES TO
SPEAK IN OPPOSITION TO THE BILL
FIRST WE HAVE MELANIE CUEVAS
WITH THE CALIFORNIA BANKERS
ASSOCIATION MELANIE IF YOU'RE
ON THE LINE PLEASE FEEL FREE TO
START YOUR TESTIMONY. GOOD
MORNING MADAM CHAIR NUMBER
THANK YOU FOR THE OPPORTUNITY
TO PARTICIPATE IN TODAY'S
HEARING THE OTHER VIRTUAL
FORMAT. I KNOW HE CREATED FOR
THE CALIFORNIA BANKERS
ASSOCIATION AND WE ARE IN
OPPOSITION TO THE MEASURE AS
AMENDED ON MARCH TWENTY FOURTH.
WHILE WE APPRECIATE THE
KNOWLEDGE MEANT IN THE
AMENDMENTS THAT THE INCLUSION
OF MORTGAGES WOULD BE
PROBLEMATIC INTERACTIONS
SEVENTEEN EIGHTY EIGHT POINT
ZERO. OTHER AMENDMENTS TAKEN AT
THAT TIME INCLUDING MOVING THE
PROVISION FROM THE FAIR DEBT
BUYING PRACTICES ACT. TO THE
ROSENTHAL FAIR DEBT. COLLECTION
PRACTICES ACT. ANOTHER ISSUE.%
FIRST THE TOP THE MEASURE HAS.
FROM ABOUT ON DATA FIRE TO THE-
DECAL. I CAN UNDER A- WHICH IN.
AND LENDER IT OWNED AT IT'S ON.
BACK AND PRIOR- LANGUAGE
TARGETED CHARGE OFF THAT- DEBT
THAT THE WIND HAD BEING UNLIKE
TO BE. AND SOLD WITH PARTY
COLLECTION AGENCY MANAGER NOW
TARGET THE LINK LIKE THAT A
TERM THAT HAS BEEN DEFINED BY
THE MARCH TWENTY FOURTH
AMENDMENT YOU MEAN THAT THAT IS
THIRTY DAYS PAST DUE AND NOT
CHARGE STOCKS. WHICH PREVENT.
CALIFORNIANS CONTINUE TO
GRAPPLE AND HOPE SOONER. FROM
THE ECONOMIC IMPACT AT THE WITH
THE CO THAT NINETY CAN BACK.
THIRDS AND THINK COMPLAIN WORK
ON. WERE THAT IS DEFINED WITH
PARTY COLAC. MOSTLY PORTFOLIO
THAT ARE SOLD DEATH BY CREATING
REQUIRE. FOR THAT MAY NOT
AVAILABLE ALL. THIRD PARTY
COLLECTORS WERE DIRECTLY WITH
CREDIT. AND COLLECT IN THE NAME
OF THE CREDITOR MEANS LEGAL
RIGHTS AND REMEDIES TO THOSE
ACCOUNTS. WE ARE UNAWARE OF THE
SITUATIONS WHERE THERE IS
CONFUSION BY THE DAUGHTER IN
THE CIRCUMSTANCES. AND WE
BELIEVE THAT ANY BAD ACTORS
SHOULD NOW FALL UNDER THE
PURVIEW OF THE FBI BY WAY OF
LAUGHTER SB NINE AWAIT BY THE
SAME AUTHOR. WE LOOK FORWARD TO
CONVERSATIONS WITH THE AUTHOR
AND SPONSORS TO FURTHER
UNDERSTAND THE AMENDMENT AS
WELL AS THE GAPS AND CURRENT
LAW THAT THE MEASURE IS A-
FAKE. AND TO WORK TOWARD
DETERMINING APPROPRIATE
SOLUTION WELL WE APPRECIATE THE
COMMITTEES TECHNICAL AMENDMENTS
ADOPTED IN THE ANALYSIS WE
REMAIN OPPOSED TO THE- CONCERN.
THANK YOUNG. THANK YOU ARE SICK
WITNESS ENOUGH IS BECAUSE
BURGER. THE CAL SO. OF THANK
YOU MATTER CHAIR CLICK. WOULD
COVER ADVOCATES IN BEHALF OF
THE CALIFORNIA ASSOCIATION OF
COLLECTORS- WE DO HAVE SOME
CONCERNS REGARDING THIS
LEGISLATION FIRST I DO WANT TO
THANK THE AUTHOR IN THE
COMMITTEE STAFF FOR THE OF
PROPOSED AMENDMENTS THAT WERE
ADOPTED. THE NEW ADDRESS SOME
OF THE ISSUES THAT WE MENTIONED
IN OUR WIDER SO WHILE WE
APPRECIATE THAT BUT WE DO WANT
TO POINT OUT TO THE COMMITTEE.
THAT SB FIVE THREE ONE EXPAND
EXISTING. FOR DEBT BUYERS TO
DEBT COLLECTORS SB TWO THREE
THREE ONE OH TWO THOUSAND AND
THIRTEEN WAS THE RESULT OF MORE
THAN TWO YEARS OF NEGOTIATIONS
BETWEEN CENTER WHAT ARE THE
ATTORNEY GENERAL THE CALIFORNIA
ASSOCIATION OF COLLECTORS DEBT
BUYERS AND CONSUMER GROUPS. IT
APPLIES SPECIFIC REQUIREMENTS
THE ENTITIES THAT PURCHASED GAS
DEBT BUYERS PURCHASED DEBT
PORTFOLIOS FROM ORIGINAL
CREDITORS AS AN INVESTMENT THE
REQUIREMENTS OF SB TWO THREE
THREE WERE CRAFTED TO ADDRESS
THE ISSUES INVOLVED IN
COLLECTING. PURCHASE DEBTS OVER
LONGER PERIODS OF TIME BETWEEN
A BUYER AND A DEBTOR THEY HAVE
NO DIRECT RELATIONSHIP DEBT
COLLECTORS ARE ASSIGNEES
PRIMARILY REPRESENTING ORIGINAL
CREDITORS AND ARE ATTEMPTING TO
COLLECT A DEBT THAT HAS NOT
BEEN CHARGED OFF OR IS
OBSOLETE. CERTAIN PROVISONS S.
B. FIVE THREE ONE WARRING
CONFLICT WITH FEDERAL LAW AND
SHOULD NOT. DO NOT APPLY TO
DEBT COLLECTORS BECAUSE THEY
ARE NOT PARTICULARLY WORKABLE
THERE ARE TWO ISSUES THAT I
WANT TO DRAW YOUR ATTENTION TO
AT THIS TIME ONE RELATES TO THE
FACT THAT THE LENO BILL WHEN IT
WAS ENACTED PER THE AGREEMENT
BETWEEN ALL THE STAKEHOLDERS
CONTAIN LANGUAGE. THAT
EXPRESSLY STATED THAT IT
APPLIED PROSPECTIVELY WE'VE
ASKED FOR THE INCLUSION OF THAT
SAME LANGUAGE IN THIS BILL AND
IF THIS BILL IMPORT THE
PROVISIONS SUBSTANTIVE REASONS
OF ALL I KNOW BILL. FAILURE TO
INCLUDE THE LANGUAGE THAT MADE
IT CLEAR THAT THE PROVISIONS
APPLY PROSPECTIVELY.
POTENTIALLY CREATE HIS. IN
WHICH- ONE ARGUE THIS BILL
INVALIDATES EXISTING CONSUMER
ACCOUNTS IN DEATHS AND CREATES
A CONSTITUTIONAL TAKING ISSUE
WE HAVE BEEN TOLD THAT THAT IS
NOT THE INTENT OF THE BILL. BUT
WE DO NOT SEE WHY IF THAT IS
THE CASE THAT LANGUAGES NOT
INCLUDED THAT WE IN SENATOR
WHEN I WAS BILL. WE DO NOT
THINK IT IS APPROPRIATE FOR THE
LEGISLATURE TO PASS A BILL THAT
LEAVES THAT POINT CONFUSED AND
EXPOSES THE BUSINESS COMMUNITY
TO POTENTIALLY MILLIONS OF
DOLLARS IN LITIGATION.
UNNECESSARILY OVER WHETHER THIS
BILL IS PROSPECTIVE OR
RETROACTIVE. SECONDARILY VERY
SPECIFICALLY THIS BILL
IMPORTANT LANGUAGE THAT WAS IN
THE ONE OH BILL THEIR REQUIRES
DISCLOSURE OF WHAT WE CALL
CHAIN OF TITLE CHAIN OF TITLE
IS A CONCEPT THAT. BELONGS WITH
DEBT BUYERS BECAUSE THEY BUY
AND SELL. CONSUMER DATA THERE
IS NO CHAIN OF TITLE ISSUE OR-
APPROPRIATE. IT THAT YOU DON'T
TO ASSIGN WHO WORKING FOR THE
ORIGINAL CREDITOR THEREFORE WE
RESPECTFULLY BELIEVE THAT THAT
LANGUAGE SHOULD COME OUT OF THE
BILL. UP FOR THOSE REASONS WE
ARE OPPOSED TO THIS BILL AT
THIS TIME AND APPRECIATE YOUR
CONSIDERATION OF THOSE ISSUES
THANK YOU. THANK YOU NOW WE
WILL MOVE ON TO WITNESSES IN
OPPOSITION IN TE GALLERY. C.
NINE THAT WE WILL THEN PROCEED
TO WITNESSES IT WISHING TO
TESTIFY IN OPPOSITION OF SB
FIVE THREE ONE IN ROOM ONE
TWELVE. C. NINE WE WILL MOVE TO
WITNESSES WISHING TO TESTIFY IN
OPPOSITION TO SB FIVE THREE ONE
VIA TELECONFERENCE ORVIS
MODERATOR IF YOU COULD PLEASE
PROMPT THE INDIVIDUALS WAITING
TO TESTIFY IN OPPOSITION OF SB
FIVE THREE ONE. WE WILL BEGIN.
I DIDN'T GET ON THE PHONE LINES
TO OUR TESTIFYING IN OPPOSITION
TO BILL SB FIVE THREE ONE
PLEASE PRESS ONE FOLLOWED BY
THE ZERO AT THIS TIME. ONE
FILED BY ZERO AND OUR FIRST.
PARTICIPANT IS LINE TWENTY SIX
PLEASE GO AHEAD. YEAH I'M SHARE
MEMBERS OF THE COMMITTEE SCOTT
GOVERNOR ON BEHALF OF THE
CALIFORNIA FINANCIAL SERVICES
ASSOCIATION. IN OPPOSITION FOR
THE REASONS STATED BY IN THE
SQUARE BOX THANK YOU. WILL BE
ONE WILL GO TO LINE TWENTY FIVE
PLEASE GO AHEAD. BETTINGER AND
MEMBERS MIGHT BELOW TO SPEAKING
FOR THE CALIFORNIA CREDITORS
BAR ASSOCIATION ALSO OPPOSED
THANK YOU. NEXT IS LINE TWENTY
TWO PLEASE GO AHEAD. GOOD
MORNING CHAIR MEMBERS OF THE
COMMITTEE BOB WILSON CALIFORNIA
CREDIT UNION THE OPPOSE THANK
YOU. AND LADIES AND GENTLEMEN
AGAIN IF YOU WOULD LIKE TO SHOW
OPPOSITION TO BILL SB FIVE
THREE ONE. PLEASE PRESS ONE
FOLLOWED BY THE ZERO AT THIS
TIME. THE FINAL REMINDER TO
SHOW OPPOSITION TO SB FIVE
THREE ONE PLEASE PRESS ONE ZERO.
I'M SURE THERE ARE NO OTHER
PARTICIPANTS QUEUING UP AT THIS
TIME. THANK YOU MODERATOR WE
WILL NOW BRING THE DISCUSSION
BACK TO MEMBERS TO DO ANY
MEMBERS HAVE ANY QUESTIONS OR
COMMENTS. SENATOR DRAW SO LIKE
TO MOVE THE BILL WHEN
APPROPRIATE THANK YOU WE HAVE A
MOTION ANY ADDITIONAL COMMENTS
OR QUESTIONS. CENTER GROVE AREA
THANK YOU MADAM CHAIR -- I
I HAVE A COUPLE OF QUESTIONS
TO SEE IF I CAN GET THEM GET
THROUGH THEM BECAUSE IT'S A
PRETTY TECHNICAL AREA AND I I
AM I'M I'M CONCERNED ABOUT SOME
OF THE LANGUAGE ISSUES THAT
PROBABLY SHOULD BE WORKED OUT
BY BY NOW BECAUSE THIS IS THE
BANKING COMMITTEE BUT -- BUT I
THINK THERE IS AN OPPORTUNITY
FOR MR -- SENATOR BREAK HUSKY
TO TO WORK WITH THE -- THE
DIFFERENT ENTITIES THAT HAVE
SOME CONCERN I WAS CONTACTED
BY A FRIEND OF MINE WHO'S A
LONG TIME -- -- HAS BEEN IN
BUSINESS FOR THIRTY FORTY YEARS
-- COLLECTING DATA AND SOME
OF THE SOME OF THE CONCERNS
CONCERNS THAT WERE RAISED WERE
OPERATED BY HIM AS WELL THE
DIFFERENCE BETWEEN IT A DEBT
COLLECTOR AND A DEBT BUYER IS
FAIRLY SIGNIFICANT AND SO I'M
WONDERING IF -- I COULD HAVE
MISTER WHITE CASKETS PLAN A
LITTLE BIT -- WHAT ATTEMPTS
HE'S MADE TO TO WORK WITH --
THE DIFFERENT ORGANIZATIONS AND
-- AND ALSO ADDRESS THE ISSUE
OF THE RETROACTIVITY -- I'M NOT
SURE I UNDERSTOOD EXACTLY WHAT
WAS THE RIGHT WAY TO GO IF YOU
DO IT THEN IT'S A TAKING IF YOU
DON'T DO IT THEN WE DON'T LIKE
IT SO -- I GUESS THAT'S THE
FIRST QUESTION I HAVE FROM FOR
THE SENATOR THANK YOU CENTER
GOVERNOR CENTER WITH HOUSE
YOU WOULD YOU LIKE TO RESPOND
TO THIS THANK YOU MANAGER
AND I WILL I HAVE BEEN LONG
TIME FRIENDS WITH THE BANKING
COMMUNITY THE CREDIT CAN CREDIT
UNIONS THE TECH COLLECTORS THE
DEBT BUYERS -- THE FINANCIAL
INSTITUTIONS ON A VARIETY OF
DIFFERENT BILL SO THOSE AVENUES
ARE STILL OPEN WE WILL CONTINUE
TO TALK WITH THEM AT THE AT
THE BOTTOM THE BOTTOM LINE IS
THAT YOU KNOW THE CONSTITUTION
THE STATE CALIFORNIA SAYS
THAT WE PASS A BILL IT BECOMES
EFFECTIVE ON THE BEGINNING
OF THE NEXT YEAR UNLESS WE DO
SOMETHING DIFFERENT THE SWISS
PICK ANOTHER DATE IN TWENTY
TWENTY THREE OR SOMETHING
LIKE THAT LET'S COUNCIL HAS
SPECIFICALLY ADVISED US AGAINST
INCLUDING A SPORTS PERSPECTIVE
DAY STATING THAT IT SETS A BAD
PRECEDENT AND CAN CONFUSE THE
COURTS THE PHARMACY THAT SHOULD
ONLY BE USED IN CASES WHERE YOU
WANT TO EXTEND IT SO THEY'VE
ASKED THAT WE NOT PUT IN A BILL
BECAUSE THE CORPORATE OR A DAY
THE QUESTION IS IS THE ACTIVITY
THAT WOULD HAPPEN IS WE'RE
WE'RE TRYING TO SAY IS THAT IN
TWENTY TWENTY TO TWENTY TWENTY
THREE WE WANT THE CONSUMER TO
HAVE SOME IDEA OF WHO YOU'RE
DEALING WITH AND RIGHT NOW THIS
PRACTICES ALLOWED WE DON'T WE
WANT TO CHANGE THAT PRACTICE
DOING GOING FORWARD THAT'S ON
ADVICE OF COUNSEL WE DON'T HAVE
IT THANK YOU CENTER COMING OUT
OF WOULD YOU LIKE TO FOLLOW UP
-- YES ONE OTHER QUESTION --
AND I DO APPRECIATE THAT THE
CLARIFICATION -- AND LET ME
JUST SAY THAT I'M GONNA SUPPORT
THE BILL TODAY AND I I THINK
IT'S REALLY IMPORTANT THAT THE
DEBTORS UNDERSTAND WHO IT IS
IT'S COLLECTING ON IT'S BECOME
INCREASINGLY DIFFICULT TO KNOW
WHETHER IT'S A SCAM OR WHETHER
IT'S SOMEBODY TRYING TO COLLECT
A DEBT THAT YOU HAVE NO IDEA
YOU KNOW OR THEY MAY BE IN YOUR
NAME THAT'S NOT YOURS OR DAD
THEY HAVE A SIMILAR NAME TWO
YEARS AND THEY'RE JUST THEY'RE
JUST SCOUTING TO SEE IF ANYBODY
WILL PAY IT I'M AND I'VE HAD
ALL OF THAT HAPPENED TO ME AND
SO I I'M I I DO UNDERSTAND HOW
IMPORTANT THIS IS IT THIS IS
BACK -- IN REGARDS TO THAT THE
FEDERAL ACTION IS BEING TAKEN
MY UNDERSTANDING IS THAT THE
FEDERAL IS A BOTTOM BASELINE
-- KIND OF OF PROCESS AND THAT
WE CAN ADD IT DOESN'T PREEMPT
THE STATE FROM ADDING MORE --
REGULATORY OVERSIGHT AND SO
I'M WONDERING IF IF -- IF THE
SENATOR COULD TALK A LITTLE
BIT ABOUT WHAT'S HAPPENING
AT THE AT THE FEDERAL LEVEL
UNDERSTANDING THAT IT IS A
BOTTOM AND HOW THIS WOULD WORK
IN WITH WITH THE BILL GIVEN
THAT WE'RE TAKING ACTION AND
INDIA THE REQUESTED THAT WE
NOT TAKE ANY ACTION AND I
THINK WE SHOULD BUT I'D LIKE
TO HEAR WITH THE CENTER HAS
TO SAY THANK YOU SENATOR HAVE
IT A POINT WELL TAKEN AND
SENATOR BECAUSE HE WOULD LIKE
TO RETURN THEM TO THE SENATOR
FROM SALINAS IS EXACTLY CORRECT
THIS IS IT AND IT'S NOT CERTAIN
THAT THE FEDERAL REGULATIONS
THAT COULD IMPEDE ADOPTED
THIS IS THIS IS A DISCUSSION
IS GOING ON THERE'S NOTHING
THAT'S CONTAINED IN SB FIVE AT
THREE ONE THE CONFLICTS WITH
THE FEDERAL REGULATIONS AND
YEAH IT'S THE FLORIDA IT'S THE
BARE MINIMUM OF FRIGHTS AND WE
BELIEVE THE CALIFORNIANS SHOULD
BE A LOT MORE PROTECTION AND
THAT'S WHAT THIS BILL SEEKS
TO THEIR THANK YOU ANY OTHER
QUESTIONS OR COMMENTS MEMBERS
WE DO HAVE A MOTION SO -- WE
WILL GO AHEAD AND HAVE THE
CENTER -- KELSEY CLOSED IF
YOU WOULD LIKE I WILL CONTINUE
TO TALK WITH THE OPPOSITION
I UNDERSTAND THAT SOME OF
THE OBJECTIONS ARE WITH THE
LANGUAGE AND WE'RE ACCEPTING
THAT THE COMMITTEES PUT IN
SO I'VE ACCEPTED THAT THOSE
AMENDMENTS -- AND OBVIOUSLY AT
THE BOTTOM LINE WE THINK THAT
CALIFORNIA'S JUST DESERVE SOME
NOTICE OF OF WHETHER THEY HAVE
BEEN CONTACTED BY SOMEBODY IT'S
IMPROVED THEY ACTUALLY HAVE
THE RIGHT TO COLLECT ON THE
DEBT AND MAKE SURE THAT THEY'RE
GIVING UP THEIR MONEY TO THE
RIGHT ENTITY AND I WOULD URGE
AND I FELT THANK YOU CENTER A
CASCADE THE BILL HAS NOW BEEN
MOVED BY SENATORS DID ASAL THE
MOTION IS DUE PASS AS AMENDED
BUT FIRST AMEND AND RE REFER
TO THE COMMITTEE ON JUDICIARY
CAN WE PLEASE CALL THE ROLL THE
MOTION IS TO PASS AS AMENDED
THE FIRST AMENDED AND BE RE
REFER TO COMMITTEE ON JUDICIARY
LAMONT HI RAMON HI PHOTO ABOVE
NO THE JOB OF YOU KNOW BRADFORD
ALL RIGHT BRADFORD BY ZERO
SEVEN ZERO HI DALY NO DALY NO
TORONTO HI THE ROUTE SO THAT I
WENT SO I WAS SO NINE MEN ARE
MEN HI PORTANTINO HI PORTANTINO
HI THE BILL HAS SEVEN VOTES IT
DOES MOVE OUT AND WE BELIEVE
THE ROLE OPEN FOR ADDITIONAL
MEMBERS TO ADD ON THANK MEMBERS
-- AS WE'RE GOING TO GO AHEAD
AND ADD ON TO BILLS -- AT
THIS MOMENT AND WAIT FOR ANY
MEMBERS TO JOIN US I DO WANT
TO MAKE SURE THAT TO -- TODAY
WE ALSO WE DON'T HAVE A CHANCE
TO OFFICIALLY WELCOME BUT WE
NOT WELCOME MICHAEL BURDICK OUR
NEW SENATE BANKING CONSULTANT
HE'S -- HAD PRIOR EXPERIENCE
WORKING IN THE ASSEMBLY BANKING
AND FINANCE COMMITTEE AND
AS WELL AS FOR THE CITY AND
COUNTY OF SAN FRANCISCO AND THE
CONSUMER FINANCIAL PROTECTION
BUREAU AND PRIVATE INDUSTRY
SO WELCOME TO OUR NEW CHIEF
CONSULTANT MICHAEL BURDICK
GREAT TO HAVE YOU ALL RIGHT
MEMBERS WE WILL GO AHEAD AND DO
ADD ON VOTES AND WE'LL GO AHEAD
AND CALL THE ROLL SO WE WILL
START TO WITH -- SENATE BILL
SIX THIRTY EIGHT
SB SIX THIRTY EIGHT THE
MOTION IS TO PASS AS AMENDED
THE FIRST AMENDED AND BE
RE REFER TO COMMITTEE ON
JUDICIARY WESO PHOTO BY
NINE ZERO
ALL RIGHT THAT BILL HAS NINE
VOTES IN SUPPORT AND IT IS
OUT OF COMMITTEE AND TO AND
NEXT WE'LL MOVE TO SB FOUR
NINE SEVEN SB FOUR NINE
SEVEN THE MOTION IS TO PASS
THE FIRST BE RE REFER TO THE
COMMITTEE ON HUMAN SERVICES
WITHOUT HI WHAT'S THE OUTSIDE
PORTANTINO HI PORTANTINO
THE BILL HAS NINE VOTES AND
WE WILL GO AHEAD AND AND
THAT MOVED OUT OF COMMITTEE
THEN AND THE FINAL BILL
IS SB FIVE THREE ONE SEN
ALRIGHT EVERYONE HAD A CHANCE
TO VOTE ON THAT BILL AND IT
HAS SEVEN VOTES IN SUPPORT
AND TWO BIT OF VOTES IN
OPPOSITION IT DOES MOVE OUT
OF COMMITTEE OUR RATES MEMBERS
WITH SACK TO WE WILL GO AHEAD
AND ADJOURNED TODAY'S HEARING
WE WANT TO THANK EVERYBODY
WHO HAS PARTICIPATED AND AND
PROVIDED PUBLIC TESTIMONY WE
THANK YOU FOR YOUR PATIENCE
ANKARA COPPER CORPORATION
WE WILL GO AHEAD AND ADDRESS