THE SENATE COMMITTEE ON BANKING
AND FINANCIAL INSTITUTIONS WILL
COME TO ORDER GOOD MORNING AS WE
CONTINUE TO TAKE SOME
PRECAUTIONS TO MANAGE ONGOING
COVERT NINETEEN RISK THE SENATE
CONTINUES TO WALK ON THE PUBLIC
AND PROVIDE AND HAVE PROVIDED
ACCESS TO BOTH IN PERSON AND
TELEPHONIC UP PARTICIPATION FOR
PUBLIC COMMENT. FOR INDIVIDUALS
WISHING PROVIDE PUBLIC COMMENT
VIA TELECONFERENCE ARE VERSUS
THE PARTICIPANT TOLL FREE NUMBER
AND ACCESS CODE IS POSTED ON OUR
COMMITTEE WEBSITE AND I WILL
ANNOUNCE IT NOW. TODAY'S
PARTICIPANT NUMBER IS.
844-291-6364 AND THE ACCESS CODE
IS ONE FOUR ONE ONE FOUR ZERO I
WILL MAINTAIN QUORUM DURING THE
HEARING AS IS CUSTOMARY. ANY
INDIVIDUAL WHOSE DISRUPTIVE. MAY
BE REMOVED FROM THE REMOTE.
MEETING SERVICES OR HAVE THEIR
CONNECTIONS MUTED WE ARE HOLDING
OUR COMMITTEE HEARINGS IN THE-
STREET BUILDING ASK ALL MEMBERS
OF THE COMMITTEE TO BE PRESENT
ROOM TWELVE HUNDRED SO WE CAN
ESTABLISH QUORUM AND BEGIN OUR
HEARING. WE HAVE THREE BILLS UP
ON TODAY'S AGENDA AND WE ARE
STILL WAITING FOR MEMBERS SO WE
WILL ESTABLISH QUORUM AT ONCE WE
HAVE. A COUPLE MORE MEMBERS JOIN
US I'M AT THIS TIME I AM GOING
TO PASS OVER THE GAVEL TO OUR
VICE CHAIR SENATOR A CHOI BOGUE.
WHO WILL FACILITATE THE MEETING
WHILE I GO UP AND PRESENT.
WARNING CENTER LEE MARTIN A
PRESENT YOUR BELL SB ELEVEN
SEVENTY SIX THANK YOU VERY MUCH.
SB ELEVEN SEVENTY SIX PRESENTS
THE CONTINUATION OF AN IMPORTANT
CONVERSATION ABOUT HOW ARE HOW
WELL OUR FINANCIAL INSTITUTIONS
ARE SERVING COMMUNITIES IN
CALIFORNIA. WHO CAN BENEFIT FROM
HEALTHY FINANCIAL PRODUCTS AND
SERVICES. I THINK WE CAN ALL
AGREE THAT ACCESS TO AFFORDABLE
FINANCIAL PRODUCTS LIKE LOW BANK
FEES ARE A VOTE BANK THE
ACCOUNTS AND MORTGAGES OR SMALL
BUSINESS LOANS WITH FAIR RATES
IS A POSITIVE THING FOR OUR
CONSTITUENTS. BUT IN TOO MANY
PLACES ACROSS THE STATE
ESPECIALLY IN LOWER INCOME
COMMUNITIES COMMUNITIES OF COLOR
AND RURAL COMMUNITIES ARE
CONSTITUENTS DO NOT ENJOY THE
SAME LEVEL OF ACCESS. AS
WEALTHIER OR MORE DENSELY
POPULATED AREAS BACK IN THE
NINETEEN SEVEN SEVENTIES THE
FEDERAL GOVERNMENT TRY TO
ADDRESS THESE DISPARITIES BY
PASSING THE COMMUNITY
REINVESTMENT ACT ALSO KNOWN AS
C. R. EIGHT WHICH ESTABLISHES A
FRAMEWORK TO EVALUATE HOW WELL
BANKS ARE MEETING THE FINANCIAL
SERVICES. AND NEEDS OF
COMMUNITIES IN WHICH THEY DO
THIS. NOW WE KNOW THAT C. R. A.
DID NOT SOLVE ALL PROBLEMS IN
OUR FINANCE. SERVE AND THIS IS
EVE FOR THE COMMUNITIES WHICH
THEY DO BUSINESS. BUT AS NOTED
IN THE COMMITTEE ANALYSIS THERE
IS EVIDENCE THAT THE C. R. A.
HAS EXPANDED ACCESS TO MORTGAGES
AND SMALL BUSINESS LENDING AND
LOWER INCOME AREAS AS THE
FEDERAL GOVERNMENT CURRENTLY
LOOKS AT LOOKS TO MODERNIZE THE
PROGRAM'S REGULATIONS I HOPE
THAT THE CRA CAN BECOME EVEN
MORE EFFECTIVE IN DELIVERING THE
INTENDED OUTCOMES OF HELPING
UNDERSERVED COMMUNITIES. ONE OF
THE SHORTFALLS OF THE FEDERAL
YEAH A HER C. R. A. HOWEVER IS
THAT IT ONLY COVERS BANKS THIS
MAY HAVE BEEN REASONABLE IN THE
NINETEEN SEVENTIES WHEN IT
DOMINATED THE FINANCIAL SYSTEM.
FAST FORWARD TO TODAY AND WE
HAVE A VARIETY OF COUNCIL
INSTITUTIONS THAT ARE NOT EVEN
ALLOCATED ON HOW WELL THEY ARE
STARVING UNDERSERVED THESE.
INCREDIBLE AND IT MORTGAGE
COMPANIES AND A GROWING POPPY OF
FINTECH LENDERS. CAN I SEEN THIS
GAP SEVERAL STATES HAVE ENACTED
THEIR OWN CRA LAWS IN AN EFFORT
TO ENCOURAGE A BROADER SECTION
OF THE FINANCIAL SERVICES
INDUSTRY TO MEET THE NEEDS OF
ALL COMMUNITIES. PIECE FOR A
SUMMARIZE WHAT THE BILL DOES I
WANT TO ADDRESS DIRECTLY ONE OF
MY MOTIVATIONS FOR STARTING THIS
IMPORTANT CONVERSATION. THE
RACIAL WEALTH GAP IS SOMETHING
THAT A LOT OF US ARE FAMILIAR
WITH WE UNDERSTAND THE FINANCIAL
CONSEQUENCES OF THAT GAP WHETHER
IT BE LESS LIKELY TO HAVE THE
MONEY FOR A DOWN PAYMENT ON A
HOUSE OR MORE LIKELY TO HAVE A
HIGHER STUDENT LOAN DEBT OR HIGH
INTEREST CREDIT CARD. BUT THERE
IS ALSO A RACIAL TRUST GAP WHEN
IT COMES TO INTERFACING WITH
FINANCIAL INSTITUTIONS AND THE
TRUST GAP RESULTS FROM DECADES
OF DISCRIMINATION. DECADES OF
PEOPLE OF COLOR WALKING INTO
BANKS AND HEARING DIFFERENT
THINGS AND BEING TREATED
DIFFERENTLY. THAN WHITE
CUSTOMERS. DECADES OF BEING
OFFERED SUB STANDARD PRODUCTS IF
ANY AT ALL. AND THOSE DECADES OF
EXPERIENCE NOT JUST OUR OWN
GENERATION BUT ALSO THE
GENERATIONS THAT CAME BEFORE US
ALL OF THAT EXPERIENCE. SHAPES
OUR PERCEPTIONS TODAY. THE
FEDERAL CRA DOES NOT EXPLICITLY
ACCOUNT FOR RACE AND ETHNICITY
IN ITS EVALUATION OF BANKS
PERFORMANCES. INSTEAD IT LOOKS
AT ONLY. IT LOOKS ONLY AT INCOME
LEVELS. BUT WE KNOW THAT INCOME
ALONE DOES NOT EXPLAIN
DISPARITIES IN ACCESS TO
FINANCIAL SERVICES. EVEN AS OUR
COMMUNITY HAS MADE PROGRESS IN
NEARING THE WAGE GAP THE GAP. IN
HOMEOWNERSHIP RATE BETWEEN BLACK
AND WHITE AMERICANS IS NOW THE
SAME AS IT WAS BEFORE THE
PASSAGE OF THE FAIR HOUSING ACT
IN NINETEEN SIXTY EIGHT. AS I
STATED I BELIEVE THAT WE MUST DO
MORE IN FIGHTING TO REVERSE SOME
OF THIS HISTORY THIS BILL LAYS
THE FOUNDATION. FOR OUR STATE
REGULATOR TO BEGIN EVEN ATTY
WEEDING OUR STATE LICENSE
FINANCIAL INSTITUTIONS. FOR HOW
WELL THEY ARE SERVING THE
DIVERSE COMMUNITIES OF
CALIFORNIA THE BILL DOES THREE
MAIN THINGS FIRST IT REQUIRES A
STATE REGULATOR THE DEPARTMENT
OF FINANCIAL PROTECTION
INNOVATION TO ANALYZE MORTGAGE
LENDING DATA TO EXCESS HOW WELL.
ITS LICENSEES ARE SERVING LOW
INCOME COMMUNITIES AND
COMMUNITIES OF COLOR. SECOND IT
REQUIRES THAT THE REGULATOR
COLLABORATE WITH OTHER
REGULATORS IN THE STATE THAT
HAVE IMPLEMENTED STATE C. R. A.
PROGRAMS THAT IDENTIFY BEST
PRACTICES IN ADMINISTERING THOSE
LAWS. THIRD IT REQUIRES THE
REGULATOR TO EVALUATE ITS
AUTHORITY AND PROCEDURES TO
IDENTIFY OPPORTUNITIES FOR
BROADENING THE SCOPE OF EXISTING
PROGRAM ACCESS HOW WELL
LICENSEES ARE MEETING THE
FINANCIAL SERVICES. THE
FINANCIAL SERVICES NEED OF
UNDERSERVED COMMUNITIES THIS
BILL REQUIRES THE DEPARTMENT TO
PUBLISH THE ANALYSIS REQUIRED BY
THE BILL ON THE WEBSITE WHICH
CAN BE USED TO INFORM FUTURE
POLICY DISCUSSIONS AROUND THIS
TOPIC. I BELIEVE THAT IT IS TIME
FOR OUR STATE TO ADD THIS
IMPORTANT DIMENSION OF EQUITY
AND UNDERSERVED COMMUNITIES TO
THE WAY WE OVERSEE THE FINANCIAL
SYSTEM AND I HOPE THAT THIS BILL
IS AN IMPORTANT START TO MORE
CONVERSATIONS. ABOUT HOW WE CAN
ALL WORK TOGETHER TO
COLLECTIVELY REACH THOSE
OBJECTIVES IT IS MY HOPE THAT WE
WILL WORK WITH THE STAKEHOLDERS
AND WITH ALL OF OUR FINANCIAL
INSTITUTIONS TO COMMONLY REACH
THE- DOES THAT I KNOW. OUR
IMPORT. ASPEN THANK YOU. THANK
YOU CENTER LEE MANUEL MOVE ON
ANY FOR AT WANTING TO TELL.
FIRST WE'LL HEAR FROM BOTH
GONZALEZ OF THE CALIFORNIA
REINVESTMENT COALITION WHO WILL
BE TESTIFYING IN PERSON. I THANK
YOU SENATOR TROUBLING THANK YOU
SENATOR LIMON FAIR LEADERSHIP ON
THIS BILL- AS WELL AS ALL OF YOU
COMMITTEE MEMBERS WHO ARE HERE
TODAY. GOOD MORNING MY NAME IS
PAULINE EVAN SIDE IS PRETTY
THOROUGH I AM THE EXECUTIVE
DIRECTOR OF THE CALIFORNIA
REINVESTMENT COALITION CRC IS A
STATEWIDE COALITION OF OVER
THREE HUNDRED COMMUNITY BASED
ORGANIZATIONS WORKING IN LOW
INCOME COMMUNITIES AND
COMMUNITIES OF COLOR. FOR
GENERATIONS BLACK INDIGENOUS AND
PEOPLE OTHER PEOPLE OF COLOR BY
PARK HAVE BEEN EXCLUDED FROM
BANKING I HAVE HAD- WEALTH
EXTRACTED BY N. STREET
UNSCRUPULOUS FINANCIAL
INSTITUTIONS. THIS IS A RESULT
OF REDLINING BANKS FAIL TO SERVE
ALL COMMUNITY EXCLUDING MAJORITY
MINORITY NEIGHBORHOODS FROM
THEIR BRANCH FOOTPRINT. EXT
FINANCIAL PRODUCTS LIKE PRIME
MORTGAGE LOANS FAILING TO MAKE
PPP LOANS OR OTHER SMALL
BUSINESS LOANS TO BUY PARKS
SMALL BUSINESS OWNERS AND
FINANCING LOANS TO CORPORATE
LANDLORDS THAT DISPLACED
TENANTS. OFTEN THIS IS HAPPENING
IN THE SAME AREAS THAT PREVIOUS
REDLINING MAPS SHOWED US WERE
NEIGHBORHOODS WHERE BANKS
REFUSED TO MAKE LOANS TO BUY
POT. WHAT WE HAVE SEEN TIME AND
TIME AGAIN IS SERIAL HARM TO BUY
POT COMMUNITIES AND
NEIGHBORHOODS WHILE WHITE
CALIFORNIANS WERE BUYING HOUSES
THAT THEY COULD PASS ON TO THEIR
CHILDREN AND GRANDCHILDREN.
BUILDING INTERGENERATIONAL
WEALTH WE WERE BEING DENIED THE
SAME OPPORTUNITIES WE ARE MORE
LIKELY TO BE RENTERS AND MORE
LIKELY TO BE HARMED BY
DISPLACEMENT OFTEN BY THE SAME
FINANCIAL INSTITUTIONS. BOB WHO
FLIPPED. THERE THE MEDIAN WEALTH
GAP BETWEEN BLACK AND WHITE
FAMILIES IS TWELVE CENTS PER ONE
DOLLAR WHITE WEALTH WELL THE GAP
BETWEEN THAT NAY AND WHITE
FAMILIES AND TWENTY ONE CENTS
PER ONE DOLLAR OF WHITE WEALTH.
ANGELA GLOVER BLACKLEG WELLS OF
HELPING POLICE STATED IN A NEW
YORK TIMES OP ED QUOTE BANKS
HAVE BEEN UNDER WRITERS OF
AMERICAN RACISM NO INDUSTRY HAS
PLAYED A BIGGER OR MORE AND
DURING ROLE IN BLACK OPPRESSION
EXPLOITATION AND EXCLUSION SHE
GOES ON TO SAY FIRST THEY MUST
APOLOGIZE FOR THE COUPLE
CULPABILITY FOR INCOME CITY
INSTRUCTIONAL RACISM NEXT THEY
MUST COMMIT TO SERVING BLACK
PEOPLE AS THEY DO WHITES. THEN
THE INDUSTRY CAN START TO CLOSE
THE WEALTH GAP REPAIR THE HARMS
AND SERVE AS A MODEL FOR A
NATION STRUGGLING TO RECKON WITH
RACISM AT SEVENTY SIX
ESTABLISHES A FRAMEWORK THAT
DIRECTS THE FPI TO VALIDATE THE
MORTGAGE LENDING OF FINANCIAL
INSTITUTIONS WE ASK THAT THIS
ASSESSMENT ALSO INCLUDES SMALL
BUSINESS LENDING CONSUMER
LENDING AND CLIMATE IMPACTS TO
SEE A FINANCIAL INSTITUTIONS ARE
PARTICIPATING IN HARM TO
FORMALLY READ COMMUNITIES AND
BUY POT PEOPLE. WE ALSO SUPPORT
THE REQUIREMENTS THE DF EVALUATE
OF THORGY TO ASSESS WHETHER
FINANCIAL INSTITUTIONS ARE
ADEQUATELY SERVING COMMUNITIES
AND COMPLYING WITH ANTI
DISCRIMINATION LAWS WE DON'T
HAVE THE LUXURY OF SLOW ROLLING
A CORRECTION FOR GENERATIONS OF
HARM BY PUCK THAT PLEASE ARE
STRUGGLING EVERY DAY TO HOLD ON
WE ARE SUPPORT OF SB ELEVEN
SEVENTY SIX. THANK YOU. THANK
YOU VERY MUCH- FOR YOUR
TESTIMONY AND THIS IS ALL AS WE
WILL NOW- ESTABLISH QUORUM-
MISTER CONSULTANT PLEASE-
SEVERAL. WELL KNOWN HERE WELL
KNOWN HERE A CHILL ABOUT HERE
AKOBO HERE BRADFORD. BRADFORD
HERE CABALLERO ALLEY YOUR DAILY
HERE THEY'RE ALSO WESO MAN MAN
HERE PORTANTINO YOU HAVE A
QUORUM. CORN HAS BEEN
ESTABLISHED THANK YOU VERY MUCH-
WE WILL NOW CONTINUE TO HEAR
FROM OUR NEED WITNESS OUR SECOND
LEAD WITH THIS W. GORE MAN OF
THE GREEN LINING INSTITUTE. GOOD
MORNING CHAIR AND MEMBERS OF THE
SENATE BANKING AND FINANCE
COMMITTEE MY NAME IS DEBORAH
KERR MAN PRESIDENT CEO OF THE
GREEN LINE INSTITUTE. THE
GREENING INSTITUTE IS A STATE
AND NATIONAL POLICY RESEARCH
ORGANIZING AND LEADERSHIP
DEVELOPMENT ORGANIZATION WORKING
TO ADVANCE ECONOMIC OPPORTUNITY
AND EMPOWERMENT FOR PEOPLE OF
COLOR AND LOW INCOME
COMMUNITIES. SB ELEVEN SEVENTY
SIX AN IMPORTANT FIRST STEP IN
INCREASING EQUITY IN OUR
FINANCIAL INST FINANCIAL SYSTEM
FOR STATE LICENSE HOME LENDERS
AND UNDERSTANDING THE CREDIT
NEEDS OF CALIFORNIANS
COMMUNITIES IN WHICH THESE
LENDERS OPERATE WE FEEL THIS
ANALYSIS IS URGENTLY NEEDED AS
TRADITIONAL BANKS INCREASINGLY.
CONSOLIDATE AND CLOSE BRANCHES
CREATING A LENDING VACUUM THAT
IS EASILY FILLED BY UNREGULATED
STATE LICENSED LENDERS STATE AND
FEDERAL REGULATORS DO NOT HAVE
THE FRAMEWORK FOR EVALUATING
WHETHER STATE LICENSED LENDERS
ARE MEETING THE FINANCIAL
SERVICES. NEEDS OF LOW INCOME
COMMUNITIES AND COMMUNITIES OF
COLOR AND SB ELEVEN SEVENTY SIX
CRITICAL COLLECTING THE
INFORMATION WE NEED FOR
DEVELOPING A FRAMEWORK FOR
CALIFORNIA. OUR RESEARCH WE HAVE
FOUND THAT NON BANK LENDERS HAVE
A GREATER PRESENCE IN
COMMUNITIES OF COLOR LOW INCOME
COMMUNITIES AND IMMIGRANT
COMMUNITIES THAN TRADITIONAL
BANKS. THIS COULD BE CONCERNING
BECAUSE- THESE GROUPS ARE HIGHLY
VULNERABLE TO PREDATORY LENDING
AND BECAUSE NON BANK LENDERS ARE
NOT SUBJECT TO THE FEDERAL
COMMUNITY REINVESTMENT ACT. THE
LEGAL OBLIGATION TO MEET THE
CREDIT NEEDS OF LOW INCOME
MODERATE LOW INCOME AND MODERATE
POTTER BORROW SAFELY AND
RESPONSIBLY REQUIRED OF
TRADITIONAL BANKS DOES NOT APPLY
THIS ANALYSIS WILL HELP US
BETTER UNDERSTAND WHAT IS GOING
ON IN OUR COMMUNITIES OF
CONCERN. THE LEGACY OF REDLINING
HAS RESULTED IN NEIGHBORS
NEIGHBORHOODS THAT NOT ONLY
LACKS ADEQUATE INVESTMENT BY
FINANCIAL INSTITUTIONS BUT ALSO
COMMONLY BEAR DISPROPORTIONATE
ENVIRONMENTAL BURDENS RESULTING
IN INCREASED VULNERABILITIES TO
CLIMATE CHANGE. A RECENT STUDY
BY MARK THAT FOUND THAT
NATIONALLY PEOPLE OF COLOR WILL
MORE LIKELY BE DENIED A MORTGAGE
THAN THEIR WHITE COUNTERPARTS
DESPITE HAVING SIMILAR DEBT TO
INCOME RATIOS. THIS DISPARITY IS
DRIVEN BY ALGORITHMS USED BY NON
BANK LENDERS THAT
DISPROPORTIONATELY AFFECT
INFORMATION ABOUT COMMUNITIES OF
COLORS. HOME LENDERS HAVE
ESPECIALLY IMPORTANT ROLE TO
PLAY IN ENSURING THAT ALL
COMMUNITIES HAVE ACCESS TO
AFFORDABLE. SAFE HOME LOANS THAT
INCREASE FAMILY WEALTH AND
REDUCE THE WIDENING RACIAL
WEALTH GAP ADDITIONALLY IT
RESEARCH BY THE FEDERAL RESERVE
BANK OF SEPARATE CISCO OF WHICH
I SERVE ON THE ADVISORY
COMMITTEE AND OTHERS ALSO SHOWS
THAT CLIMATE CHANGE IS A RISK
MULTIPLIER. THAT EXACERBATES
RACIAL AND ECONOMIC INEQUALITY.
SHOULD SB ELEVEN SEVENTY SIX
ADVANCED TODAY THE GREEN LINING
INSTITUTE WOULD APPRECIATE A
PROVISION INCLUDE INCORPORATING
A GEOSPATIAL ANALYSIS MORTGAGE
LENDING ACTIVITIES OVERLAID WITH
THE CAL RECYCLE THE COLUMBINA
SCREEN. IN ORDER TO IDENTIFY
OPPORTUNITIES WHERE CRA
QUALIFYING INVESTMENTS CAN
ADDRESS COMMUNITY CREDIT NEEDS
WHILE REDUCING POLLUTION AND
ENVIRONMENT A BURNING COMMITTEE
. THAT SAID ALEX CONTINUING THE
WORK TO COLLABORATE WITH THE
LEGISLATURE AND STAKEHOLDERS AND
RESPECT RESPECTFULLY ASK FOR IT
I VOTE SB ELEVEN SEVENTY SIX
THANK YOU. THANK YOU VERY MUCH-
MS SCORE VAN- NOW WE WILL BEGIN
WITH AND YOU WITNESSES HEARING
ROOM TWELVE HUNDRED DO WE HAVE
ANY WITNESSES IN SUPPORT OF S.
B. ELEVEN SEVENTY SIX. C. NINE
THANK YOU WILL NOW MOVE ON TO
WITNESSES WAITING TO TESTIFY VIA
THE TELECONFERENCE ARVEST.
MODERATE IF YOU WOULD PLEASE
FROM THE INDIVIDUALS WAITING TO
TESTIFY IN SUPPORT OF S. B.
ELEVEN SEVENTY SIX WE WILL BEGIN
. THANK YOU MADAM CHAIR FOR
THOSE OF YOU WHO WISH TO SPEAK
IN SUPPORT OF THIS BILL PLEASE
PRESS ONE THEN ZERO. PRESS ONE
THEN ZERO. WE DO HAVE SEVERAL
OPPOSED TO SIGNAL THEY WISH TO
SPEAK JUST A MOMENT. I WILL GO
TO LINE THIRTEEN. THE MORNING
DOWN REPRESENTING NEXT IN
CALIFORNIA AND SUPPORT. JUST
MOMENT FOR OUR NEXT COMMANDER.
WE WILL NOW GO TO LINE ELEVEN.
MORNING THE CHAIR AND MEMBERS-
AND HOWARD ON BEHALF OF THE
OFFICE OF CAP TAYLOR WE REALLY
WANT TO THANK THE CHAIR THE
COMMITTEE AND PRETTY STUFF FOR
THEIR OUTSTANDING AND
RESOLUTION. ON THIS IMPORTANT
ISSUE OF CENTRAL FURNACE WERE
SPECIALLY ASKED- FOR YOU ABOUT.
AT THAT'S A HEALTHY THING. BOB I
AM NOT LITTLE BIT ON THE-
INFORMATION THAT IS BY TIMES AND
THERE ARE ARE NO FURTHER PEOPLE
LINK. WHICH TO CALL. THANK YOU
MR MOTT IF YOU WOULD MIND
CHECKING THE ONE MORE TIME TO
MAKE REST ASSURED THAT WE HAVE.
HEARD FROM ALL OUR SUPPORT
WITNESSES FOR SB ELEVEN SEVENTY
SIX. LADIES AND GENTLEMEN THIS
IS THE FINAL CALL FOR THOSE WHO
WISH TO COME IN SUPPORT OF THIS
BILL PLEASE PRESS ONE THEN ZERO. NO ONE ELSE TO SIGNAL THAT
THEY WISH TO SPEAK THANK YOU MR
MODERATOR HAVING HEARD FROM ALL
OF OUR SUPPORTERS WILL NOW
FOLLOW THE SAME PROCESS AND HEAR
FROM ANY OPPOSITION. THERE IS NO
REGISTERED OPPOSITION TO THIS
BILL BUT LET'S SEE IF WE HAVE
ANY WITNESSES HERE IN ROOM
TWELVE HUNDRED. C. NINE- WE WILL
NOW MOVE ON TO WITNESSES WAITING
TO TESTIFY VIA TELECONFERENCE
ARVEST. MISTER MODERATOR IF YOU
WOULD PLEASE PROMPT INDIVIDUALS
WAITING TO TESTIFY IN OPPOSITION
OF IT S. B. ELEVEN SEVENTY SIX
WE WILL BEGIN. I DON'T CARE.
THOSE WHO WISH TO SPEAK IN
OPPOSITION TO THIS BILL PLEASE
PRESS ONE AND ZERO AT THIS TIME.
WE GET THE OPPORTUNITY TO COMMON
IN. OPPOSITION TO THIS BILL
PLEASE PRESS ONE AND ZERO. NO
ONE IS SIGNALED THAT THEY WISH
TO SPEAK. THANK YOU MR MODERATOR
IF YOU WOULDN'T MIND CHECKING
THE LINES ONE MORE TIME JUST TO
REST ASSURED THAT WE HAVE HEARD
FROM ALL OUR WITNESSES WHO WISH
TO TESTIFY IN OPPOSITION TO SB
ELEVEN SEVENTY SIX. FINAL CALL.
THOSE WHO WISH TO SPEAK IN
OPPOSITION. PLEASE PRESS ONE
THEN ZERO. AND AGAIN NO ONE IS
SIGNALED THAT THEY WISH TO SPEAK
THANK YOU MR MODERATOR AND THANK
YOU TO ALL OUR SUPPORT WITNESSES
WILL NOT BRING THE DISCUSSION
BACK TO OUR MEMBERS TO ANY OF
OUR MEMBERS HAVE ANY QUESTIONS
OR COMMENTS. CENTERMAN I THANK
YOU VERY MUCH I WANNA MADAM
CHAIR AND- THANK YOU TO THE
AUTHOR FOR BRINGING THIS
FORWARD. I IN A PREVIOUS LIFE I
ACTUALLY WROTE QUITE A BIT ABOUT
THE FEDERAL CRLA I IN PARTICULAR
WITH. RESPECT TO THE CLAIM THAT
CRA SOMEHOW BECAUSE THE TWO
THOUSAND SEVENTEEN THOUSAND
EIGHT. SUBPRIME MORTGAGE THIS
AND- THE SHORT VERSION OF MY
RESPONSE TO THAT WAS ESSENTIALLY
THAT. THOSE WHO ARE CLAIMING SHE
OR HE HAD A ROLE WERE PURPOSELY
MISCONSTRUING THE ROLE OF CRA-
SO I GUESS I'D SAY THIS I
APPRECIATE THE DIRECTION OF THIS
I APPRECIATE THIS BILL VERY
MUCH- YOU KNOW WEALTH BUILDING
IS SO IMPORTANT AS COUNTRY AS I
THINK THE AUTHORS POINT ENTER
COMMENTS- WE'VE HAD AN
UNFORTUNATE HISTORY OF REDLINING
OF DENYING ACCESS TO CREDIT- AND
WHILE. A LOT OF ECONOMISTS SIT
BACK IN THEIR IVORY TOWERS AND
POINT OUT THAT YOU KNOW YOU CAN
MAKE MORE MONEY. INVESTING IN A
FOUR ONE K. OR IN SOME KIND OF A
MUTUAL FUND- THE REALITY IN
AMERICA. CALIFORNIA IN ORANGE
COUNTY WHICH I REPRESENT IS THAT
. PEOPLE TEND TO MAKE MORE MONEY
OFF THEIR HOME. THAT HAVE
HOMEOWNERSHIP. IS THE NUMBER ONE
PATHWAY TO WEALTH BUILDING- AND
THERE'S A LOT OF REASONS WHY YOU
CAN TALK TO SOMEBODY. BEHAVIORAL
ECONOMICS ECONOMISTS ABOUT THAT.
BUT THE FACT IS HOMEOWNERSHIP IS
THE SINGLE. MOST EFFECTIVE AND
MOST USED PATHWAY TO WEALTH
BUILDING IN THIS COUNTRY FOR
LOWER INCOME FAMILIES. AND
UNFORTUNATELY TOO MANY
HOUSEHOLDS PARTICULARLY BLACK
AND BROWN AND UNDERSERVED
COMMUNITIES. HAVE BEEN DENIED
THAT ACCESS TO CREDIT. NOW THAT
BEING SAID I DO THINK THERE A
LOT OF QUESTIONS OF. PECTIN
ARRAY AT THE FEDERAL LEVEL.
REALITY IS A LOT OF THING PEOPLE
THINK IT HASN'T WORKED AS WELL
AS IT SHOULD HAVE BECAUSE IT
ONLY COVERS DEPOSITORY
INSTITUTIONS. SO BANK OF AMERICA
WHICH IS A FINANCIAL HOLDING
COMPANY HAS A LOT OF ACTIVITIES
IT COVERS ONLY A SMALL PORTION
THAT COMMITTEES IT ONLY APPLIES
TO THE GEOGRAPHIC AREAS IN WHICH
THEY HAVE. ACTUAL BRANCHES- SO
THERE'S SOME QUESTIONS ABOUT
HERE A HEALTH ACTIVIST IT
THERE'S ALSO SOME QUESTIONS
ABOUT HOW THE SHOULD APPLY AT
THE STATE LEVEL. NOW THE REALITY
IS THAT DEPOSITORY INSTITUTIONS.
HIGHLY REGULATED IN THIS COUNTRY
AND IN THE STATE. MEANWHILE YOU
HAVE A LOT OF NON BANK FINANCE
COMPANIES THAT ARE ENGAGING
ALLOW THE SAME ACTIVITIES THAT
ARE NOT SUBJECT TO THESE TYPES
OF- REGULATIONS- SO I THINK
THERE'S QUESTIONS ABOUT. THE
SCOPE OF COVERAGE WHICH THE
STATE'S YEAR A REQUIREMENT LOOK
LIKE- SHOULD IT APPLY TO.
DEPOSITORY INSTITUTIONS SHOULD
EXTEND THAT ARE WE OVER%
BURDENING DEPOSITORY
INSTITUTIONS OUT WHAT'S THE
RIGHT BALANCE I DON'T HAVE THE
ANSWERS THESE QUESTIONS I
APPRECIATE THE FACT THAT YOU'RE
YOU'RE LOOKING TO MAKE THIS A
STUDY BILL BECAUSE I THINK THIS
IS A PUBLIC. THE QUESTION. WITH
A LOT OF DIFFERENT FACTORS
INVOLVED BUT BUT I WANT TO PLOT
THE AUTHOR BECAUSE I THINK THE
DIRECTION THIS THE- RECOGNIZING
THE PROBLEM HERE THAT WE HAVE A
LOT OF HOUSEHOLDS. THAT STILL IN
TWO THOUSAND TWENTY TWO OF FIFTY
YEARS AFTER SIERRA WAS ALMOST
TWO YEARS AFTER SHERRY WAS
PASSED. FIFTY YEARS AFTER WE
STARTED RECOGNIZING THE PROBLEM
OF REDLINING THEY'RE STEPPING
CANNOT ACCESS TO CREDIT AND MUCH
MORE COMPLEX FINANCIAL BERMAN
SO. UNDERSTANDING WHAT THAT
PROBLEM IS WHAT SOME OF THE
SOLUTIONS MIGHT BE IS IMPORTANT
STEP HERE SO- I APPLAUD THIS
BILL. IN I WOULD. THANK YOU
THANK YOU SENATOR MAN. THANK YOU
COMING THAT IT'S OR COMMENTS-
SAID DELHI WILL THANK YOU MADAM
CHAIR AND ALSO I REALLY THE BILL
BUT I HAVE I DO HAVE SOME
QUESTIONS AND LOOK I'VE BEEN ON
THE COMMITTEE SINCE I CAME TO
THE SENATE WAS MY FIRST
OPPORTUNITY BEYOND BANKING AND-
I LEARNED A LOT I'M REALLY BEEN
EDUCATED AND THERE'S BEEN A LOT.
OF THE WHAT WE SEEM CREDIT
LENDING AND M. PEOPLE OF COLOR
AND COMMUNITIES ARE BEING TAKEN
ADVANTAGE OF BUT THAT THE ONE
THING LACKING IN THIS BILL. THAT
I THINK WE NEED TO BE PART OF.
THIS BILL IS THE- YOU KNOW THAT
THE- DATA. INCLUDED TO THE
CREDIT RISK IF YOU INCLUDE THE
CREDIT RISKS THEN YOU CAN
pWHAT THE LENDERS ARE ARE DOING.
AND SO I'M I'M NOT GOING TO
SUPPORT THE BILL I'M ONLY OFF
THE BILL BECAUSE I THINK THAT
HAS TO BE IN YOUR IF WE DON'T.
IF WE DON'T PUT THAT IN HERE WE
DON'T ACTUALLY GET A ACCURATE
DATA WHAT WHAT THE RISK IS
BECAUSE RISK THERE IS A RISK
WHEN YOU. WHEN YOU ONLY NEED TO
KNOW WHAT THAT'S CREDIT SCORE IS
SO YOU CAN THEN BALANCE OUT AND
ACTUALLY FOCUS IN ON WHAT YOU'RE
TRYING TO ACHIEVE SO. IF THAT
WAS IN THIS BILL. THEY CAN BE.
ON BUT IT NEEDS TO BE IN BECAUSE
WE ARE GOING TO BE. COMPARING
APPLES TO APPLES REGMI.
COMPARING APPLES TO ORANGES
THANK YOU THANK YOU AND I'LL
ACTUALLY RESPOND JUST TO THE
CREDIT RISK WHICH ALSO INCLUDES
YOU KNOW FIGHT GO SCORES AND
OTHER SCORES AND I THINK. IT'S
WHAT THIS BILL DOES IT DOESN'T
REQUIRE FOR THE LEGISLATURE TO
CREATE THE ALGORITHMS AND THE
MODELS IN THE REGRESSIONS AND
ASK FOR D. F. P. I. SO IT ASKED
FOR THE- ENTITY THAT OVERSEES
IS. TO CREATE THE ANALYSIS AND
THAT ANALYSIS WILL ACCOUNT FOR
THIS THIS IS AN I GOT YOU BILL
THERE IS NO REGULATION HERE.
TERMS UNDERSTANDING WHERE OUR
FINANCIAL INSTITUTIONS ARE
INVESTING MONEY AND YOU KNOW. IT
IT'S- IN. WE HAVE A- TERMS OF
COMMUNITIES OF COLOR BUT A
SIMPLE ALSO REPRESENT SOME RURAL
COMMUNITIES. I CAN TELL YOU THAT
I CAN WENT TO. IS AND I. FIND IT
. THERE SOMETHING SAY ABOUT WERE
CALIFORNIA AND- AT. TO K. TO. SO
TO BE CLEAR IT WILL BE INCLUDED
THIS IS AN I GOT YOU WE WILL
BETTER UNDERSTAND WHEN D. F. P.
I. IS. MAKES THE ANALYSIS AND
THEY WILL OF COURSE USE THAT AND
OTHER- INDICATORS TO BETTER
ASSESS THIS ISN'T SUPPOSED TO BE
AND I GOT YOU. AND THIS IS
REALLY JUST COLLECTING
INFORMATION AND THE REASON IT'S
NOT THERE IS BECAUSE THAT
REGRESSION ANALYSIS IS ACTUALLY
NOT. IN THE BILL THAT'S A D. F.
P. I. ISSUE. IT IS I JUST ONE OF
. MAKE SURE THAT IF YOU DON'T
ASK THE RIGHT QUESTION YOU'RE
GONNA GET AN ANSWER THAT YOU
DON'T WANT AND I WANT MAKE SURE
THAT WE'RE ASKING THE QUESTION
IN A WAY THAT IT GETS THAT WE
GET THE GOOD DATA YEAH AND IN
PAIN WITH YOU ON THAT AND I HAVE
RULE COMMUNITIES ALL THROUGHOUT
MY DISTRICT. BUT I WANT TO MAKE
SURE THAT I'M GETTING GOOD DATA
SO THAT WE CAN GO IN AND
ACTUALLY TAKE THE INFORMATION
AND WORK WITH IT YEAH AND IF YOU
LOOK AT THAT PAGE FIVE IN THE
ANALYSIS- ABOUT WAS SOMEWHERE
AROUND NINE THIRTY AM YOU WILL
SEE THAT IT SPEAKS MORE.
INDICATORS THAT BE AT HOUSTON
HOW DF PI- WILL RUN THAT AND SO-
IT SORRY I'M SORRY AND THAT'S
NOT IN THE BILL IT'S IN SORRY IF
YOU LOOK AT PAGE FIVE LINE
THIRTY OF THE BILL NOT THE
ANALYSIS I APOLOGIZE. THE BILL.
IT SPEAKS MORE TO THAT. QUESTION
MANTRA SORRY SENATOR RAND YEAH I
HAD A QUESTION FOR THE AUTHOR-
IS THE JUST TO FOLLOW UP ON YOU
SAID IS OUR LANGUAGE IN THERE
THAT WOULD DIRECT THE ADF PI TO
LOOK INTO- CREDIT- IN SAFETY AND
SOUNDNESS. SO YES AND IN THE
BILL YOU'LL SEE THAT IT'S NOT
SPECIFICALLY LISTED IN THE
ANALYSIS BUT THE BILL DOES SPEAK
TO IT AND WE DON'T HAVE A
PROBLEM I MEAN I THINK. THAT THE
SOUND IS IMPORTANT AND THIS
ISN'T SUPPOSED TO JUST BE LIKE
DID YOU OR DID YOU NOT INVEST WE
WANT TO KNOW WHY THEY'RE
INVESTING WHERE. YOU'RE
INVESTING AND THE REASONS AND SO
THOSE REASONS ALLOW- FOR US TO
BETTER UNDERSTAND- WHY THEY'RE
MAKING INVESTMENTS. FOR NOT
RIGHT IN CERTAIN AREAS AND I
THINK THAT THE OTHER PIECE HE-
IT. YOU KNOW THERE ARE GROWING
FINANCIAL PRODUCTS IN THE
MARKET- AND AS HAS BEEN SAID IS
SAID AND STATED. YOU KNOW- IT'S
NOT JUST DEPOSITORY INSTITUTIONS
FROM BIG BANKS RIGHT THESE
PRODUCTS ARE NOW GROWING. AND SO
I THINK THAT FOR US IT'S ALSO
IMPORTANT TO UNDERSTAND HOW ARE
THEY ALL DOING RIGHT SO LIKE
WHAT THE POWER IS A FINTECH
COMPANY DOING. HOW IS A CREDIT
UNION DOING. THE HELPFUL. OUR
FINANCIAL INSTITUTIONS AND SAME
HERE AREAS WERE WEEK FEEL RIGHT
WE COULD STILL INVEST BUT THIS
ISN'T A REGULATION BILL THIS IS
SIMPLY ASKING FOR INFORMATION
AND FOR THE INFORMATION TO BE
AVAILABLE SO THAT WE CAN ACCESS
IT PUBLICLY. YET JUST A QUICK
FOLLOW UP NOT I MEAN I MEAN I
WOULD NOTE THAT THE DA PI ONE OF
THEIR PRIMARY MANDATES I THINK
THE PRIMARY MANDATE IS TO ENSURE
SAFETY AND SOUNDNESS SO. ALL OF
THIS- THAT YOU'RE ASKING THE
STUDIES WITHIN THE CONTEXT OF CS
IN TOWN IS IN MAINTAINING THAT
AT HIGH LEVELS. YES SENATOR
BRADFORD. THANK YOU AND I
APPRECIATE THE AUTHOR FOR THIS
MEASURE AND I WISH YOU ARE A
GOTCHA BECAUSE WE'VE DONE ENOUGH
RESEARCH AND WE KNOW THE HISTORY
AS THE FIRST WITNESS CLEARLY
STATED. BANKS HAVE CONTRIBUTED
TO. THE RACISM IN THIS COUNTRY
THE LACK WEALTH AND MINORITY
COMMUNITIES FOUR HUNDRED TWO
YEARS IT'S NO SECRET WE KNOW
LANCERS SO IT'S- ABOUT TIME WE
DO SOMETHING ABOUT IT BUT- AS
YOU WELL KNOW I CHAIRED THIS
COMMITTEE AND WE HAD- HEARINGS
AND ASKED. BANKS A COUPLE YEARS
AGO ABOUT THEIR LANDING- AND TO
MINORITIES AND MINORITIES THAT
HIT THE SAME INCOME AS WHITE
COUNTERPART IN THE STILL COULD
GET HOME LOANS IN CERTAIN
COMMUNITIES SO ALL WE KNOW WHY
IT'S HISTORIC HERE IN THIS
COUNTRY AND PART OF THE
REPARATIONS TASK FORCE ONE OF
THINGS WE- EXAMINE A COUPLE
MONTHS AGO. WAS THE BANK'S
HISTORY IN LENDING TO PEOPLE OF
COLOR AND IT'S DEPLORABLE AND WE
KNOW ON. AT REDLINING
DISCRIMINATION ALL THOSE REASONS
SO. I MEAN I RESPECT WHAT YOU'RE
DOING HERE BUT I THINK WE
ALREADY KNOW ANSWERS AND WE WILL
WE SHOULD BE PUTTING SOME TEETH
IN. THE GETTING THESE
INSTITUTIONS TO DO THE RIGHT
THING SO I LOOK FORWARD TO
MOVING THE BILL. THANK YOU AS
SENATOR BRADFORD AND I WILL SAY
THAT BOTH OF MY BILLS CHANNEL A
LITTLE OF YOUR PAST. CHAIR WORK
THAT YOU'VE TALKED ABOUT VERY
PUBLICLY SO- IT CERTAINLY IS AN
ISSUE AND I THINK WE WANT TO
EXPAND THE INFORMATION WE HAVE.
AGAIN NOT JUST ON BANKS BUT ALL
OF THE OTHER ENTITIES THAT ARE
LICENSED IN THE STATE. PERFECT-
ANYTHING ELSE REMEMBERS- I DID
JUST WANT TO ECHO- THE COMMENTS-
THAT SENATOR DOLLY MADE WITH
REGARDS TO YOU AS I WAS LOOKING
IN HERE WITH THE ANALYSIS TO
COMPARE LICENSEES WITHIN THE
SAME PEER GROUP ALONG THE
FOLLOWING METRICS YOU HAD OR IT
WAS POINTED OUT ONE LOAN
APPROVAL RATES BY INCOME AND
RACE AND BY RACE AND ETHNICITY
TO LOAN COST INCLUDING INTEREST
RATES AND CLOSING COSTS BY
INCOME AND BY RACE. AND
ETHNICITY AND THE MIX OF LOAN
TYPES BY INCOME AND BY RACE AND
ETHNICITY. AND I THINK THAT- AND
I AND I UNDERSTAND SENATOR DAHLE
THESE A POINT ABOUT THE FICUS
SCORE IS THAT WITH IN THESE-
WITHIN THESE- METRICS THAT YOU
WERE REQUESTING. CONTACTS IS
ALSO VERY IMPORTANT THE RISK
FACTOR- OF- OF LENDING- TO HAVE
AN ACCURATE IN MORE IN DEPTH
LOOK INTO- THESE PRACTICES. I
DIDN'T WANNA MAKE A COMMENT
THOUGH- AND THIS IS WITH REGARDS
TO THE FACT THAT. I ACTUALLY
WORKED IN REAL ESTATE- VERY
CLOSELY WITH THE MORTGAGE-
LENDING BANKS IN OUR AREA IN MY
REGION- FOR EIGHTEEN YEARS PRIOR
TO COMING TO THE SENATE. ONE OF
THE THINGS THAT I NOTICED AND I
WORKED WITH ESPECIALLY BECAUSE I
AM NOT THE NINE NINE SPANISH
SPEAKING NIGHT. I DID SERVE A
LOT OF LET YOU KNOW I FAMILIES
IN THE PROCESS OF TRYING TO GET
THEM INTO HOME OWNERSHIP BECAUSE
I DO BELIEVE THAT THAT IS THE
CORNERSTONE TO THE AMERICAN
DREAM AND BUILDING WEALTH- BY
ONE OF THE THINGS I DID WHEN I.
PUT ON THE RECORD HERE IS THAT
ONE OF THE- FACTORS THAT WE NEED
TO BE- HONEST ABOUT IS THAT WE
HAVE A LOT OF PEOPLE MIGRATING
TO THE U. S. THAT DO NOT
NECESSARILY HAVE FINANCIAL
LITERACY AND THIS IS WHY I'M
LITERACY. BECAUSE THAT MAKES AN
IMPACT IN THE FINANCIAL
DECISIONS THAT PEOPLE MAKE WITH
REGARDS TO HOW TO PURCHASE A
HOME I CAN TELL YOU FROM FIRST
HAND EXPERIENCE IN WORKING WITH
MANY FIRST TIME HOMEBUYERS. I
ACTUALLY FELT COMPELLED TO GIVE
A LITTLE BIT OF AN INSIDE OF YOU
KNOW AT THE TIME YOU KNOW MY
LIMITED INSIGHT INTO FINANCIAL.
YOU KNOW YOU DON'T YOU DON'T
PURCHASE A HOME USING 50% OF
YOUR INCOME YOU KNOW I ALWAYS
SAID. 30% BECAUSE YOU NEED TO
MAKE SURE THAT YOU HAVE MONEY
THAT YOU PUT ASIDE. REPAIRS IN
THE HOME- IS A FOR THE FOR
EMERGENCY SO I GIVE A LITTLE BIT
OF MY PERSONAL FINANCIAL AS- TOO
MIGHT MAKE MY CLIENTS. AND I
FELT THAT BECAUSE MANY PEOPLE
WERE NOT AWARE. AND THOSE AND
NOT HAVING FINANCIAL LITERACY
DOES AFFECT HOW AND WHAT TO DO
TO MAKE AND HOW IT AFFECTS YOUR
FICUS SCORE IN THE OPPORTUNITIES
THAT YOU HAVE IN THE LONG TERM.
SO AS WE ARE DEALING WITH PEOPLE
OF COLOR ESPECIALLY WITH THE
LATINO COMMUNITY THAT I CAN
PERSONALLY SPEAK FROM- I
REMEMBER WHEN I. THANKS P.
TRACKS FROM THE- CAN YOU. WHERE
A LOT OF THE PEOPLE- ESPECIALLY
THAT THE PEOPLE THAT WERE
LIMITED IN EDUCATION- WE WOULD
GO TO THE MAIN TRANSIT PROJECTS
TO- BORROW MONEY. OUT LOCALLY
FROM THEIR NEIGHBORHOOD MATRIX
REPEAT TRACKS NOT FROM BANKING
AND FINANCIAL INSTITUTIONS SO
THEY WOULD BE AT RISK OF BEING
EXPLOITED TO A CERTAIN EXTENT
BECAUSE THESE PEOPLE. COULD
CHARGE WHATEVER THAT WAS BUT IT
WAS THE NLY WAY THAT THEY WOULD
HAVE ACCESS TO. TO TO FINANCIAL-
CAPITAL SO- THIS IS NOT UNIQUE
TO THE UNITED STATES IT HAPPENS
THROUGHOUT LATIN AMERICA AND I'M
SURE IT GOES THROUGH OUT- THE
WORLD. ONE OF THE MOST IMPORTANT
THINGS THAT WE NEED TO HAVE
SPECIALLY AS WE HAVE MIGRAINES
COMING INTO OUR- COUNTRY IS TO
MAKE SURE. THAT EVERYONE HAS TO
ENSURE LITERACY I WISH IT WAS A
REQUIREMENT PRIOR TO GRADUATE
FROM HIGH SCHOOL. I WISH IT WAS
A REQUIREMENT PRIOR TO GRADUATE
FROM COLLEGE- SPECIALLY AS A
FRESHMAN WHEN YOU'RE- MAKING
DECISIONS. ON THE LOANS THAT
YOU'RE GOING TO BE- YOU KNOW.
BEING OFF ON. C. ISN'T. TO
ECONOMIC. AND EMPOWER. AND WE
NEED TO START FOCUSING ON THAT
PART SO THAT PEOPLE CAN MAKE THE
BEST BEST WISE CHOICES ON THEIR
BEHALF SPECIALLY WHEN IT COMES
TO OUR- IMMIGRANTS IN OUR AND
PEOPLE FOR MIGRATING TO OUR
COUNTRY. JUST WANTED TO PUT THAT
OUT THERE BECAUSE I AM
PASSIONATE ABOUT THIS- GO AHEAD
. I JUST WANT TO TAKE A MOMENT
AND- I REALLY. I'M IN A RURAL
AREA HAVE A PERFECT CREDIT SCORE
. TRY TO BORROW MONEY TO START
MY FIRST BUSINESS AND IT WAS IT
WAS BECAUSE OF WHERE I LIVED
RIGHT FRANKLY AND BECAUSE THE
MEDIAN INCOME IN MY COMMUNITY
WAS LIKE THIRTY THOUSAND. ALL
RIGHT AND I WAS TRYING TO BUY I
BORROW A HUNDRED THOUSAND
DOLLARS AND SO. THIS ACTUALLY
HAPPENED TO ME I HAD TO GO BOB
BARR PRIVATE MONEY WHICH WAS A
LOT MORE EXPENSIVE. TO FOR ME TO
BE ABLE TO START MY FIRST
BUSINESS AND SO IT BUT IF. IF
THIS BILL AS ENACTED AND WE GOT
THE DATA BACK AND I HAD MY SCORE
WHICH WAS PERFECT AND BECAUSE OF
WHERE I LIVE IS WHY THEY DENIED
MY LONG. SO I I'M IF YOU COULD
PLEASE PUT THAT IN THERE AND
SPELL IT OUT I THINK THIS WILL
GIVE US GOOD DEAL. AS I. IN
AUBURN VISIT WITH MY FRIEND FROM
GUARDIAN THIS THIS WILL THEN
SHOW WHAT IS REALLY HAPPENING
AND I WANT YOU TO. I WANT TO GET
THAT DATA BECAUSE IT DOES HAPPEN
WE CAN PROVE IT GREAT MAKE THIS
A GOTCHA BILL BECAUSE IT HAPPENS
SO WE GET THE DATA WE SHOW THAT
THERE ARE. INSTITUTIONS THAT
DON'T GOING TO COMMUNITIES
BECAUSE OF THEY CAN JUST BROADLY
LOOK AT THE PEOPLE THAT LIVE
THERE AND THE MEDIAN INCOME THAT
COMES IN AND THEY DON'T WANT TO
GO IN THERE BECAUSE OF BECAUSE
THEY JUST DON'T WANNA GO IN
THERE. AND I APPRECIATE YOU
SAYING THAT IN A IN A THINK YOU
YOU KNOW- AND CERTAINLY AS YOU
KNOW IF THIS. AS IT MOVES FOR.
BUT WE CAN ALSO. TELL YOU KNOW
WE TALK MORE ABOUT. HOW DF PI
WOULD CREATE THAT ANALYSIS AND-SO. IT IS. I THINK. SINCE WE
STARTED WE ALWAYS UNDERSTOOD.
THAT YOUR CREDIT SCORE IS PART
OF THE REASON THAT YOU MAY BE.
GIVEN OR DENIED A PRODUCT AND SO
IT'S NOT TO EXCLUDE THIS. BUT I
THINK YOU KNOW FOR ME AS AS I
LOOK AT THIS BILL. AND EIGHT IN
A HERE YOU KNOW REALLY THAT THE
VARIETY OF COMMENTS FROM ALL OF
US WHO ARE FROM VERY DIFFERENT
PARTS OF CALIFORNIA WE- ALL
RECOGNIZE- AND I THINK AND I
REALLY HOPE THAT THIS IS.
SOMETHING THAT THAT COMES OUT OF
THIS WE ALL RECOGNIZE THAT THERE
ARE SERIOUS LIMITATIONS AND HOW.
THINGS ARE WORKING WE ALL HAVE A
PERSONAL EXPERIENCE FROM WHAT
I'VE HEARD. IN RELATION TO THIS
WE ALL KNOW PEOPLE. LIKE WHAT
YOU GET TONIGHT WHY DO YOU GET
THIS HOW'S IT GOING. BUT ALSO A
THE A THING TO WHAT THE VICE
CHAIR HAS MENTIONED. IT CREATES
A TRUST WHO YOU LEARN FROM YOU
HAVE TO TRUST. YOU OR SOMEONE
THAT YOUR CLIENTS TRUSTED TO
HELP AND GUIDE THROUGH. AND SO
THIS IS PART. AFTER YOU'VE
TALKED ABOUT GENERATIONS BEFORE
IS NOT GOING TO BANKS. RIGHT AND
SO IT'S PART OF A HISTORY THAT
WE'RE TRYING TO CHANGE. AND HOW
DO YOU CHANGE A HISTORY WHERE
THERE HASN'T BEEN THAT TRUST-
YOU HAVE TO BE ABLE TO SEE.
WE'RE GOING TO PUT OUT
INFORMATION PUBLICLY THAT SAYS
BOTH WHERE IT'S WORKING AND MEET
YOU KNOW WHERE IT'S WORKING
WHERE IT'S NOT WORKING. I
BELIEVE THAT THERE ARE PLACES
WHERE IT'S WORKING BETTER AND I
WANT TO KNOW WHY. AND I WANT TO
KNOW HOW WILL COME IT'S WORKING
BETTER THERE WHAT HAPPENED WHICH
CHANGED. WHAT DID THE FINANCED
INSTITUTIONS DO DIFFERENTLY
BECAUSE THE LANDING YOU KNOW AND
THE SERVICES TO OUR
UNDERREPRESENTED FOLKS AND AGAIN
UNDER REPRESENTED FOLKS. IT'S
JUST THAT THIS CITY IT'S ALSO
RURAL AREAS RIGHT.
UNDERREPRESENTED FOLKS IS BETTER
BUT I ALSO LEARNED A WEEK. WE'VE
KNOWN FOR DECADES. THAT THIS
ISN'T WORKING IN SOME
COMMUNITIES. AND IT'S STILL NOT
WORKING. WHY AFTER DECADES ISN'T
THIS WORKING AND SO OF COURSE TO
ANSWER THE WHY. OR WILL ALWAYS
BE. SO WILL OTHER ELLA RIGHT WE
NEED TO ANSWER THE WHY AND SO
FOR ME YOU KNOW YOU MOST OF YOU
KNOW I STARTED THIS BILL- AND IT
WAS TO CREATE A STATE CRA AND WE
GOT A LOT OF OPPOSITION FROM THE
FINANCIAL INSTITUTIONS ST WE
DON'T WANT TO CREATE A PROGRAM
IN THE STATE THAT AUTOMATICALLY
DOES THIS AND I THOUGHT. WELL
WHY WHY DON'T WE WANT TO CREATE
THIS RIGHT- WHAT ARE THE
ELEMENTS- ISN'T THAT STOP THIS
BUT I ALSO WANT TO DO SOMETHING-
THAT MOVES US FORWARD AND HAS
THE EVIDENCE I'VE WORKED YOU
KNOW WITH THE BANKING YOU KNOW
COMMITTEE MEMBERS IN BOTH HOUSES
FOR SOMETIME AND I KNOW THAT
WHAT'S REALLY IMPORTANT IS TO
ALSO BRING YOU ALL EVIDENCE- IN
TERMS OF WHAT WE'RE DOING NOT
JUST BECAUSE IT FEELS GOOD OR
SOUNDS GOOD. SO FOR ME THIS IS
PART OF A GREAT PTION OF IF WE
HAVE OF RECENT DATA THAT LOOKS
AT CALIFORNIA SPECIFIC NOT JUST
AT OTHER STATES RIGHT AND WHAT'S
HAPPENING IN OTHER STATES WE CAN
BETTER UNDERSTAND AND MOVE
FORWARD AND AGAIN WE THEN THE
NOTION THAT IT'S JUST BANKS IS-
IT. IS A CAT YOU KNOW EVERY YEAR
WE SEE MORE AND MORE PEOPLE
USING DIFFERENT PRODUCTS THERE'S
ONLINE PRODUCTS THERE'S
DIFFERENT LENDING PRODUCTS- WE
HAVE BEEN YOU KNOW WE HAVE
TRADITIONAL BANKS COMMUNITY
BANKS CREDIT UNIONS. WE WANT TO
KNOW HOW THEY'RE ALL DOING WORK
RIGHT AND WE WANT TO BE ABLE TO
SEE IF IN THE STATE THERE'S A
WAY TO REPLICATE WHEN IT WORKS
AND ALSO TO SAY LOOK. THIS
HASN'T WORKED FOR DECADES SO
THIS BILL- EASE PART OF I THINK
A PIECE OF EVIDENCE- THAT WILL
BE COLLECTED TO INFORM.
DECISIONS AND THIS BILL DOES NOT
CREATE A DECISION IT DOESN'T
CREATE A VERDICT BUT IT DOES SAY
WE'RE GOING TO COLLECT THIS
INFORMATION. AND SET. A BILL
MOVES FORWARD ON THE FIGHT GO
SCORE ON THE CREDIT HISTORY YOU
KNOW CERTAINLY WE CAN KIND OF AT
AMP IT UP AND TALK MORE ABOUT IT
IN EXPLICITLY POINT OUT WHERE IT
SAYS WHAT- YEAH I CAN BE. IT'S
ALWAYS BEEN PART OF ANY QUESTION
TO UNDERSTAND. HOW THIS CAN
SHAPE. FOR ALL OF OUR
CONSTITUENTS NO MATTER WHERE
THEY'RE AT- BETTER YOU KNOW
SERVICES AND PRODUCTS AND
LENDING- IN YOU KNOW AS A FIRST
GENERATION- YOU KNOW. BUT THE
INDIVIDUAL WHO CAME YOU KNOW
WHOSE PARENTS ARE IMMIGRANTS- I
MEAN IT'S THE HOMEOWNERSHIP
WHICH IS NOT LIKE THIS IS NOT
JUST FOCUSED ON THAT I WANT TO
BE VERY CLEAR ABOUT THAT. WE I
GET IT I FEEL IT I UNDERSTAND-
THAT YOU KNOW FOR MANY- NOT
BEING NOT ABLE NOT BEING ABLE TO
QUALIFY FOR A HOME. MEANS YOU
ARE. FROM AXIS IN A BIG WAY AND-
YOU KNOW THE NEXT LEVEL I THINK
IS SMALL BUSINESS OWNERS AND
WHERE DID THEY GET RIGHT THE
LOAN AND CAN THEY DO YOU KNOW DO
THAT TOO BUT FOR ALL OF THESE
THINGS MEAN SOMETHING FOR THE
WEALTH WE BUILD- DON'T BUILD-
HERE. IN THIS STATE AND IN THIS
COUNTRY AND I THINK IT'S REALLY
IMPORTANT THAT YOU KNOW WE HAVE
EQUITABLE ACCESS BUT THAT EQUITY
ALSO MEANS WE LOOK AT EVERYONE'S
YOU KNOW BACKGROUND- AND THEIR
BELIEVE. ME BUT IT. I MEAN
THERE'S JUST SOME TRENDS IN SOME
HISTORY THAT DON'T ADD UP. AND
THEY'RE BASED ON. RACE AND
ETHNICITY AND THEY JUST DON'T.
AND THIS IS WHY AGAIN I DON'T
WANT TO REPEAT THE HISTORY BUT
IT IS- IT IS A HISTORY THAT IS
PART. OF THIS INDUSTRY AND I
THINK ELECTIVELY WE WANT TO
CHANGE THAT I BLIEVE THAT OUR
FINANCIAL INSTITUTIONS DON'T
WANT. THAT HISTORY. BUT WE HAVE
TO ALSO. ABOUT WHAT EXIST. I'M
ONE LAST QUESTION ON FOR MY-
GRANDCHILDREN AND MY COLLEAGUES
BUT JUST ON MY ON MY BEHALF. IS
THERE ANY POSSIBLE WAY THAT WITH
IN THIS DATA COLLECTION OR
STUDIES- ONCE WE START
INTERPRETING AND ANALYZING THE
DATA. COULD THERE BE A COMPONENT
THERE OF- FINANCIAL LITERACY
UNDERSTANDING BECAUSE I THINK
THAT ALSO. HAS AN IMPACT AS I
MENTIONED EARLIER ON YOUR FIVE
GOALS SCORED IN THE RISK FACTOR
AND I THINK THAT WOULD ALSO GIVE
A MORE IN DEPTH LOOK ASKED TO.
NOT JUST THE RACE AND ETHNICITY
BUT ALSO ON THE DECISION MAKING
OVERALL AND I THINK THAT COULD
BE A UNIFORM- YOU KNOW NINE
COLOR NON- RACED- MORE OF A
NEUTRAL. FACTOR IN ALSO TRYING
TO ANALYZE THIS DATA IT JUST.
I'M NOT SURE IF IT CAN BE PLACED
IN THIS PART- IT WHERE IT COULD
BE BUT I DO WANT TO EMPHASIZE
THAT FINANCIAL LITERACY. IS A
HUGE COMPONENT INTO HOW WE MAKE
DECISIONS AND HOW THAT AFFECTS
OUR HIGH I PIKO SCORES WHAT TYPE
OF PRODUCTS WE QUALIFY FOR AS
WELL AS- THE INTEREST RATES THAT
WE PAY OF THOSE AND SO. I JUST
WANNA MAKE SURE THAT AT SOME.
HOW SOME AT SOME LEVEL WE MAY
WANNA START ASKING THOSE
QUESTIONS- BECAUSE IT DOES MAKE
AN IMPACT SPECIALLY IF YOU'RE-
AN IMMIGRANT OR SOMEONE WHO'S
MIGRATED TO THIS COUNTRY- THAT
THAT WILL HAVE A HUGE IMPACT ON
YOUR- YOUR FIGHT GO SCORES AND
YOUR ABILITY TO. NOT TALK ABOUT
THE RULING AS BUT THAT COULD BE
ALSO IN THERE BUT I THINK THAT
IS JUST ONE NEUTRAL FACTOR THAT
COULD REALLY AFFECT- THE DATA.
INTERPRET THE DATA AS WELL. AS
WE CAN WE CAN LOOK INTO IT I
FEEL LIKE IT'S A DIFFERENT AREA
AND YOU KNOW TERMS OF THE BILL
STATUE BUT WE CAN LOOK INTO IT
AND TRY TO SEE AND UNDERSTAND.
YEAH IF UNDERLYING ADAM BEFORE
AND YET IT DOES EFFECT IN ON
THAT AND SO ON THAT'S ALL I HAVE
ANYONE ELSE. OKAY I THINK. WOULD
YOU LIKE TO MAKE A I
RESPECTFULLY ASK FOR
NEIGHBORHOOD. THANK YOU VERY
MUCH AND- WITH THAT- C. AS SOON
AS I WOULD LIKE TO CALL THE ROLL
OR- CITY- OKAY SORRY WE DO HAVE
A MOTION AND THE MOTION WAS MADE
BY SENATOR. BRADFORD THINK THANK
YOU TO BOTH OF YOU AT THE MOTION
IS TO PASS BUT FIRST WE REFERRED
TO THE COMMITTEE AND JUDICIARY
CONSULTANT PLEASE CALL THE ROLL
. MOTION IS DUE PASSED THE FIRST
RE REFER TO THE COMMITTEE ON
JUDICIARY LIMÓN HI LIMÓN I A
SHOW ABOUT. A JOB I'D BRADFORD.
BRADFORD AYE CABALLERO DALY.
DALY NOT VOTING THE ROSTER WESO
MAN MAN I PORTANTINO. THE BILL
HAS FOUR VOTES IS ON CALL
PERFECT PERFECT ELLEN COOPER
ABSENT MEMBERS SENATOR LIMÓN
WOULD YOU LIKE TO PLEASE ENTER
NEXT BILL I THINK THE FOURTEEN
FIFTEEN THANK YOU SB FOURTEEN
FIFTEEN IS A STRAIGHT FORWARD
BILL THAT INCREASES THE
TRANSPARENCY AROUND THE
PRACTICES OF CHARGING OVERDRAFT
FEES AT OUR STATE LICENSE BANKS
AND CREDIT UNIONS AS YOU ALL
KNOW OVERDRAFT FEES ARE HIGH
COST AND ACOSTA HI COST FORM OF
SHORT TERM CREDIT THESE FEES ARE
OFTEN AROUND THIRTY FIVE DOLLARS
FOR EACH TRANSACTION THAT CAUSES
A NET. PLANTS IN A CONSUMER'S
ACCOUNT GIVEN THAT THE VAST
MAJORITY OF ACCOUNTS ARE BROUGHT
BACK TO POSITIVE BALANCES WITHIN
A WEEK WHEN THE CONSUMER GETS
THEIR NEXT DEPOSIT THESE HIGH
FEES ARE SIMPLY NOT REFLECTIVE
OF THE COST OF PROVIDING
OVERDRAFT CREDIT FOR SUCH A
SHORT TIME PERIOD WE ALSO NEED
TO PAY ATTENTION TO WHO IS
BEARING THE BURDEN OF THESE FEES
AS NOTED IN THE COMMITTEE
ANALYSIS A SMALL PERCENTAGE OF
CONSUMERS PAY 80% OF ALL
OVERDRAFT FEES. THESE CONSUMERS
ARE DISPROPORTIONATELY. THE
PARENTS OF YOUNG CHILDREN AND
PEOPLE WITH VOLATILE INCOMES
LAST YEAR WHEN THIS COMMITTEE
HEARD A BILL ABOUT A STATE
PROGRAM TO PROVIDE LO FI BANK
ACCOUNTS SEVERAL MEMBERS. MADE
COMMENTS ABOUT HOW PEOPLE WITH
LOWER BALANCES ARE THE ONES WHO
ARE PAYING THE MOST FEES. AND I
THINK YOU ARE EXACTLY RIGHT. WE
HAVE ALLOWED IT FOR A SYSTEM TO
FLOURISH THAT PUTS THE BURDEN ON
VULNERABLE CONSUMERS TO
SUBSIDIZE FREE ACCOUNTS FOR HIGH
INCOME EARNERS AND TO ALLOW
BANKING CREDIT UNIONS TO
GENERATE PROFITS OFF OF YOUNG
FAMILIES AND WORK TO NEED THESE
FUN TO MAKE AND- I'M ENCOURAGED.
BY WHAT WE ARE HEARING FROM
FEDERAL REGULATORS IN CRACKING
DOWN ON HOW SOME OF THE BANKS
CHARGE OVERDRAFT FEES AND WE
HAVE SOME EARLY SIGNS. THAT THE
BANKS ARE RESPONDING WE'VE SEEN
A NUMBER OF ANNOUNCEMENTS FROM
BANK SAYING THAT THEY ARE
REMOVING SOME OF THESE FEES AND
THEY'RE RETHINKING THESE FEES
ALL TOGETHER. HOWEVER IN THE
MEANTIME THERE ISN'T OVERSIGHT
GAP IN UNDERSTANDING WHETHER
SMALLER BANKS AND CREDIT UNIONS
ARE RELYING ON OVERDRAFT FEES TO
GENERATE INCOME. THIS BILL WOULD
SIMPLY CLOSE THE GAP. DURING THE
ALL BANKS AND CREDIT UNIONS
SUBJECT TO THE STATE'S OVERSIGHT
REPORT. ANNUALLY THE TO THE TO
THE STATE OVERSIGHT REPORT
ANNUALLY ON THEIR OVERDRAFT
REVENUE. FIRST AND FOREMOST I
THINK THAT IT IS IN THE BEST
INTEREST OF CONSUMERS AND-
CONSIDERING POLICIES THAT
PROTECT. THE CONSUMERS. BUT ALSO
IF WE SEE FEDERAL REGULATORS
CHANGING THE SPACE IN CHANGING
THE PRACTICE OUR STATE
REGULATORS AND POLICYMAKERS ALSO
NEED TO UNDER. THAT WHETHER THEY
ARE SAFETY AND SOUNDNESS WHETHER
THERE ARE SAFETY AND SOUNDNESS
CONCERNS IF ANY INSTITUTIONS ARE
OVERLY RELIANT ON THE SOURCE OF
THESE FEATS. TO BE CLEAR THIS
BILL IS ONLY REQUIRING
TRANSPARENCY IT DOES NOT TAKE US
IN PROPOSED. ANY REQUEST. ON
OVERDRAFT FEES ARE CHARGED. I
LOOK FORWARD TO RECEIVING THE
INFORMATION REQUIRED BY THIS
BILL AND WORKING WITH ALL OF YOU
TO CONSIDER WHETHER FURTHER
POLICY IS APPROPRIATE HERE ARE
NOT. THANK YOU VERY MUCH-
SENATOR LEE MONNING AND- WE WILL
FIRST HEAR FROM WITNESSES WANTED
TO TESTIFY IN SUPPORT WE'LL HEAR
FROM ROBERT. HERRO FROM THE
CONSUMER FEDERATION OF
CALIFORNIA WILL BE TESTIFYING
OVER THE PHONE. YES GOOD MORNING
MADAM VICE CHAIR AND- MEMBERS OF
THE COMMITTEE BARBARELLA
EXECUTIVE DIRECTOR OF THE
REGENERATION OF CALIFORNIA WE
STRONGLY SUPPORT AN EARLY MON
FIFTY FOURTEEN FIFTEEN AND HER
CONTINUED LEADERSHIP ON THESE
TYPES OF ISSUES. AT THE END OUT
BUT THEN THE AUTHOR STATED-
THESE OVERDRAFT FEES
DISPROPORTIONATELY FALL ON POOR
COMMUNITIES AND CONSUMERS OF
COLOR. AND IT IS WIDELY COURAGE
GENE THAT SPECIALLY SOME OF THE
BIGGER BANKS ARE NOW RETHINKING
THAT- HOWEVER IT'S TOO EARLY TO
SAY THAT IT'S A MASSIVE TREND
WITHIN THE INDUSTRY. WE HOPE
THAT VERY SOON THE MINIMIZATION
AND OR ELIMINATION OF OVERDRAFT
FEES I'M A BEST PRACTICE- BUT AS
THE AUTHOR POINTED OUT IN THE
MEANTIME YOU NEED TO MAKE SURE
THAT THE RELEVANT GOVERNMENTAL
ENTITIES IN THE STATE THE FBI.
AND YOU AND YOUR COLLEAGUES HAVE
THE INFORMATION THAT YOU NEED TO
UNDERSTAND HOW THESE MARKET
CHANGES BEING IN REAL TIME
ESPECIALLY FOR SOME OF FINANCIAL
SERVICE PROVIDERS WHO AREN'T
QUITE AS LARGE- THAT'S WHY WE
STRONGLY SUPPORT THIS BILL ON
THE ORIGIN. OF TODAY THANK YOU.
THANK YOU VERY MUCH AND NOW WILL
BEGIN WITH ANY WITNESSES HERE IN
ROOM TWELVE HUNDRED. C. NINE WE
WILL NOW MOVE TO WITNESSES
WAITING TO TESTIFY GET THE
TELECONFERENCE ORVIS MODERATOR
IF YOU WOULD PLEASE FROM THE
INDIVIDUALS WAITING TO TESTIFY
IN SUPPORT OF S. B. FOURTEEN
FIFTEEN WE WILL BEGIN. THANK YOU
MADAM CHAIR FOR THOSE OF YOU
WISH TO SPEAK IN SUPPORT OF THIS
BILL PLEASE PRESS ONE THEN ZERO
PRESS ONE INTERVIEW WHICH TO
SPEAK IN SUPPORT. YOU KNOW WHAT
IS SIGNALED THAT THEY WISH TO
SPEAK. THANK YOU MR MODERATOR IF
YOU WOULD PLEASE CHECK THE LINES
ONE MORE TIME TO. MAKE SURE THAT
WE HAVE HEARD FROM ALL OUR
SUPPORT WITNESSES FOR SB
FOURTEEN FIFTEEN. FINAL CALL
PLEASE PRESS ONE ZERO YOU WISH
TO SPEAK IN SUPPORT OF THIS BILL. ONCE AGAIN NO ONE IS SIGNALED
THAT THEY WISH TO SPEAK. THANK
YOU MR MODERATOR HAVING HEARD
FROM ALL OUR SUPPORTERS WILL NOT
FOLLOW THE SAME PROCESS AND HEAR
FROM ANY OPPOSITION THERE IS NO
REGISTERED OPPOSITION TO THIS
BILL LET'S SEE IF WE HAVE ANYONE
HERE- IN ROOM TWELVE AT TWELVE
HUNDRED. SEEN NONE THANK YOU WE
WILL NOW MOVE ON TO WITNESSES
WAITING TO TESTIFY VIA THE
TELECONFERENCE OR PRESS MODERATE
IF YOU WOULD PLEASE FROM THE
INDIVIDUALS WAITING TO TESTIFY
IN OPPOSITION OF SB FOURTEEN
FIFTEEN WE WILL BEGIN. THOSE WHO
WISH TO SPEAK IN OPPOSITION OF
THE BILL PLEASE PRESS ONE THEN
ZERO PRESS ONE ZERO. I'M SURE NO
ONE IS SIGNALED THAT THEY WISH
TO SPEAK. THANK YOU MISTER
MODERATE FEW WOULD PLEASE CHECK
THE LINE ONE MORE TIME JUST TO
MAKE SURE THAT WE HAVE HEARD AND
GIVEN THE OPPORTUNITY TO ANYONE
WHO WOULD LIKE TO. TESTIFY IN.
THE BILL. FINAL CALL FOR ANYONE
WHO WISHES TO SPEAK IN
OPPOSITION TO THIS BILL PLEASE
PRESS ONE THEN ZERO. AND ONCE
AGAIN NO ONE IS SIGNALED THAT
THEY WISH TO SPEAK THANK YOU
VERY MUCH MR MODERATOR I AM A
THANK YOU TO ALL OUR SUPPORT
WITNESSES WILL NOT BRING THE
DISCUSSION BACK TO OUR MEMBERS
TO ANY OF OUR MEMBERS HAVE ANY.
QUESTIONS OR COMMENTS. SENATOR
BRADFORD- THANK YOU- FOR THIS
MEASURE AND YOU KNOW AGAIN I
DON'T WANT TO REHASH OLD POLICY
HERE. ISSUES BUT OVER FIVE YEARS
THIS BODY BOTH IN THE ASSEMBLY
AND SENATE. RACED ALL KINDA
NOISE ABOUT THE HIGH INTEREST
RATES OF PAYDAY LENDERS AND
ONLINE LENDERS- AND WHAT IMPACT
THAT HAD ON CONSUMERS WHEN
REALLY THE REAL CULPRITS WERE
THE BANKS. WHEN YOU THINK OF
WHAT BANKS CHARGE FOR ONE DOLLAR
OVERDRAFT WHEN YOU BUY A CUP OF
COFFEE AT STARBUCKS WITH YOUR
DEBIT CARD AND YOU DON'T HAVE
THE FULL SIXTY DOLLARS THE
COVERED. WHEN YOU FACTOR IN FEES
MANY TIMES THAT COFFEE COSTS YOU
OVER TWENTY DOLLARS WHEN YOU
FACTOR IN THE FEES THAT BANKS
ARE CHARGING AND WE WERE TALKING
ABOUT THE 103100% THAT NLINE
LENDERS AND PAYDAY LENDERS WERE
CHARGING WHEN BANKS ARE CHARGING
A 1000% THE MAJORITY OF THEIR
PROFITS ARE FROM. THESE FEES AND
I'M SURPRISED THAT WE ARE NOW
MORE PEOPLE CALLING IN REGARDING
THIS BECAUSE- THIS IS WHAT YOU
KNOW BANKRUPTING MANY. WORKING
FAMILIES ARE THESE FEES THAT
BANKS CHARGE AND THIS IS WHERE
THE MAJORITY OF THEIR PROFITS
COME FROM SO. I APPRECIATE THIS
MEASURE AND FINALLY SHINING A
LIGHT. ON ALL SIDES OF THE
INDUSTRY AND WHAT THOSE FEES ME
TO. CONSUMERS. THANK YOU VERY
MUCH ANYONE ELSE. SENIOR IS THAT
A MOTION. OFTEN IF NEEDED OKAY
SENATOR ANY MAN. THANK U. S. IN
EARLY ONE WOULD YOU LIKE TO
CLOSE THANK YOU AND YOU KNOW I
THINK WITH THE- BOTH OF THE
BILLS COMING FORWARD AND THIS
ONE IS SPECIFICALLY SPECIFICALLY
IT'S NOT LOST ON ME THE HISTORY
OF BANKING AND FINANCIAL
INSTITUTIONS RIGHT OVER THE LAST
FIVE YEARS AS OUR FORMER CHAIR
SAID AND SO I THINK IT'S YOU
KNOW. WE'RE AGAIN ASKING FOR
MORE INFORMATION TO UNDERSTAND
BUT ALSO WATCHING A CHANGE IN A
TRAIN AND HELP THIS ENTIRE
CONVERSATION IS HAPPENING AT THE
NATIONAL LEVEL- IT IS CHANGING
AND SO WE WANT TO GET WE WANT TO
BETTER UNDERSTAND- WHAT IS
HAPPENING BUT CERTAINLY IF 80%
OF A CONSUMERS ARE BEARING THE
BRUNT OF THESE FEES- AND THAT
IS. I'M SORRY IF 80% OF THESE
FEES ARE. ARE ARE BEING YOU KNOW
IMPOSED ON A VERY SMALL NUMBER
OF CONSUMERS I THINK THAT THAT
IS A BIG ISSUE THAT WE NEED TO
LOOK AT- SO WE WILL LOOK AT IT-
AND BETTER UNDERSTAND WHERE
THIS. TAKES US AND- HOW WE CAN
ALSO CHANGE ON SOME OF THIS I
KNOW THERE WILL BE AND THERE ARE
NATIONAL CONVERSATION TAPPING AS
HAPPENING AS WELL THAT
CALIFORNIA IS LOOKING AT. THAT
TO SEE WHERE WE MIGHT FALL ON
SOME OF THESE THINGS. SO WITH
THAT I RESPECTFULLY ASK FOR AN
AYE VOTE. THANK YOU SENATOR
REHMAN WE DO HAVE A MOTION ON SB
FOURTEEN FIFTEEN BY SENATOR MAN-
THANK YOU THE BILL HAD. THAT HAS
BEEN MOVED BY SENATOR MEN THAT
MOTION IS DUE PASSED BUT FIRST
WE REFERRED TO THE COMMITTEE ON
APPROPRIATIONS. CONSULTANT
PLEASE CALL THE ROLL. THE MOTION
IS DUE PASSED BUT FIRST RE REFER
TO THE COMMITTEE ON
APPROPRIATIONS AMOUNT. AYE MON
AYE A SHOW ABOUT NO THE JOB OF
NO BRADFORD. BRADFORD AYE
CABALLERO. DALLY DALLY NOTES
DROUGHT SO. WESO MEN. AND AYE
PORTANTINO. THE BILL HAS THREE
VOTES IN IS ON CALL. THANK YOU
VERY MUCH AND LEAVE THAT ON CALL
AND WE GO BACK TO CENTER EARLY
MARCH. AT AT AT YES AND GO BACK
IN AND WE'LL DO CONSENT.
THANK YOU AND NOW- IF WE CAN
HAVE THE EIGHTY AT IT WILL TAKE
A VOTE ON THE CONSENT CALENDAR
PLEASE. DO WE HAVE A MOTION FOR
CONSENT SO MOVED BY SENATOR
BRADFORD. I DON'T THINK WAS
PLEASE CALL THE ROLL FOR
CONSENT. THE MOTION IS TO ADOPT
CONSENT CALENDAR AMOUNT AYE MON
AYE BUT SHOWBOAT HI BUT CHAU
BOGART BRADFORD. BRADFORD AYE
CABALLERO DALY OUR DAILY I DRAW
SO WHAT'S SO MEN ARE MEN I
PORTANTINO. THE BILL HAS FIVE
VOTES IS ON CALL GREAT THANK YOU
VERY MUCH- AND WITH THAT TO WE
WILL PULL TO. THE WE WILL- WILL
HOLD THE BILL'S OPEN AT AND WAIT
FOR SOME OF OUR MEMBERS AND SO
BEFORE WE CLOSE THANK YOU
EVERYBODY. THANK YOU.
WE ARE GOING TO LIFT THE CALL
FIRST WE ARE GOING TO LIFT THE
CALL AN S. B. ELEVEN SEVENTY SIX
WE MOUNT. PLEASE CALL THE ROLL.
SB ELEVEN SEVENTY SIX THE MOTION
IS DUE PASSED THAT FIRST
REFERRED TO THE COMMITTEE ON
JUDICIARY CABALLERO. THE
RUSSELL. YEAH ALL RIGHT
THRUSTERS FIVE WEST OAK
PORTANTINO. GREAT I THINK YOU
WILL HAVE FIVE VOTES IS ON CALL.
RIGHT THAT BILL IS ON CALL THE
NEXT BILL'S GOING TO BE S. B.
FOURTEEN FIFTEEN ALONE. SB
FOURTEEN FIFTEEN THE MOTION IS
DUE PASSED THE FIRST RE REFER TO
THE COMMITTEE ON APPROPRIATIONS
CABALLERO. THE RUSSELL. THE
RUSSELL I WAS SO PORTANTINO.
THANK YOU AND LAST WE HAVE THE
CONSENT CALENDAR WHICH IS SB
FOURTEEN NINETY EIGHT AT
FOURTEEN NINETY EIGHT THE MOTION
IS TO ADOPT THE CONSENT CALENDAR
CABALLERO THERE ALSO HI RUSSELL
I WAS SO PORTANTINO. BILL HAS
SIX VOTES IS ON CALL. THANK YOU
. WE WILL STILL HOLD THE CALL
OPEN FOR OTHER ABSENT MEMBERS.
YOU ARE RATES THANK YOU WE WILL
A LIFT THE CALL ON US FIRST ON
SB ELEVEN SEVENTY SIX LEÓN. SB
ELEVEN SEVENTY SIX THE MOTION IS
DUE PASSED THE FIRST RE REFER TO
COMMITTEE ON JUDICIARY CABALLERO
WHAT'S SO. I WAS SO I
PORTANTINO. BILL HAS SIX VOTES
IS ON CALL THANK YOU NEXT BILL
IS SB FOURTEEN FIFTEEN LIMON SB
FOURTEEN FIFTEEN THE MOTION IS
DUE PASSED THAT FIRST RE REFER
TO THE COMMITTEE ON
APPROPRIATIONS CABALLERO. WHAT'S
SO WHAT'S SO I PORTANTINO. BILL
HAS BY VOTERS ON CALL THANK YOU
AND FINALLY WE HAVE CONSENT
CALENDAR SB FOURTEEN NINETY
EIGHT. SB PORTENT WHETHER THE
MOTION IS TO ADOPT THE CONSENT
CALENDAR CABALLERO. SO WHAT'S
ALLY PORTANTINO PORTANTINO HI
YOU FEEL HAS EIGHT VOTES IS ON
CALL RATE AND WE WILL LIFT THE
CALL FOR SB ELEVEN SEVENTY SIX
LEE MON. THE MOTION IS DUE
PASSED THE FIRST REFERRED TO THE
COMMITTEE ON JUDICIARY CABALLERO
PORTANTINO. PORTANTINO BY. NEXT
BILL SB FOURTEEN FIFTEEN LIMON.
SB FOURTEEN FIFTEEN EMOTION IS
THE PAST THAT FIRST RE REFER TO
COMMITTEE ON APPROPRIATIONS
CABALLERO. PORTANTINO PORTANTINO
I THINK YOU THANK YOU AND WE
WILL HOLD THE CALL OPEN UP FOR
THAT ABSENT MEMBERS.
ALL RIGHT SO WITH THAT TO- SO OF.
ALL RIGHT SO A SENATE COMMITTEE
ON BANKING AND FINANCIAL
INSTITUTION S. B. ELEVEN SEVENTY
SIX LEE MALONE HAS SEVEN AYE
AYES AND THAT WILL. B. IT'S DUE
PASS FOR FIRST REFERRED TO THE
COMMITTEE ON JUDICIARY SB
FOURTEEN FIFTEEN DO PASS BUT
FIRST REFERRED TO THE COMMITTEE
ON APPROPRIATIONS AND THE MOTION
AS SIX ICE. AND. SIX EYES INTO
KNOWS SORRY THAT WAS JUST BEFORE
AT FOURTEEN SIX EYES AND WHO
KNOWS AND FOR SB FOURTEEN NINETY
EIGHT TO THE CONSENT CALENDAR
THAT WE HAVE AYE EIGHT HIS AND
WITH THAT TO WE WILL ADJOURN ARE
BANKING AND FINANCIAL
INSTITUTIONS COMMITTEE.