THE SENATE COMMITTEE ON BANKING
EVENT FRANCE. AND ASSEMBLY CAN
ON BANKING FINANCE WILL COME TO
ORDER. GOOD MORNING AS WE TAKE
PRECAUTIONS TO MANAGE THE
ONGOING COVE IN NINETEEN REST
THE SENATE CONTINUES TO WELCOME
THE PUBLIC AND HAS PROVIDED
ACCESS TO BOTH IN PERSON AND
TELECONFERENCES THE PATIENT FOR
PUBLIC COMMENT. FOR INDIVIDUALS
WISHING TO PROVIDE PUBLIC
COMMENT VIA TELECONFERENCE
SERVICE 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.
EIGHT FOUR FOUR TWO NINE ONE
FOUR EIGHT FIVE AND THE ACCESS
CODE IS FOUR SIX SIX THREE NINE
SIX EIGHT I WILL MAINTAIN
DECORUM DURING THE HEARING AS IS
CUSTOMARY IN ANY INDIVIDUAL WHO
IS DISRUPTIVE. MAY BE REMOVED
FROM THE REMOTE MEETING SERVICE
FOR HAVE THEIR CONNECTIONS
NEEDED WE ALSO HAVE
REPRESENTATIVES FROM THE
DEPARTMENT OF FINANCE. PROTECT
THE PROTECTION AND INNOVATION
AND ARE WHO ARE PARTICIPATING
REMOTELY. FOR A REMOTE
PARTICIPANTS PLEASE MUTE YOUR
PHONES OR COMPUTERS THIS WILL
GREATLY AID IN ELIMINATING. ANY
ACOUSTIC FEEDBACK I ASKED THE
EVERY TIME YOU WISH TO BE
RECOGNIZED. THANK YOU USED THE
RAISE YOUR HAND FEATURE IN THE
PROGRAM EACH TIME YOU ARE
RECOGNIZED TO SPEAK A POP UP
WINDOW WILL APPEAR ASKING IF YOU
WOULD LIKE. TO ON MUTE PLEASE
SELECT THE AND YOU BEFORE YOU
BEGIN SPEAKING. ARE EIGHTY
PERSONNEL WILL PUT YOU BACK ON
MUTE WHEN YOU ARE DONE. ONCE
RECOGNIZED TO SPEAK PLEASE MAKE
SURE YOU CAN SEE. YOU CAN BE
SEEN ON THE SCREEN STATE YOUR
NAME AND THEN YOU ARE READY TO
ADDRESS THE COMMITTEE. FOR
TODAY'S HEARING WE WILL HEAR
FROM A PANEL OF WITNESSES ON THE
EDGE. HI TO TAKING ANY PUBLIC.
ONCE WE HAVE HEARD ALL THE
WITNESSES WE WILL HAVE A PUBLIC
COMMENT PERIOD FOR THOSE WHO
WISH TO COMMENT ON THE TOPICS ON
TODAY'S AGENDA. FOR MEMBERS OF
THE PUBLIC WHO CALL IN TO
PROVIDE COMMENT PLEASE LIMIT
YOUR TESTIMONY TO ONE MINUTE.
PERSON. NOW THAT WE'VE DEALT
WITH SOME HOUSEKEEPING ITEMS WE
CAN TURN UP. TO OUR AGENDA
TODAY. FIRST WE WILL START BY
HEARING OPENING REMARKS FROM
CHAIR GRAYSON. AFTER WHICH I
WILL PROVIDE REMARKS AND THEN WE
WILL PROCEED WITH THE HEARING
CHECK GRAYSON. THANK YOU CHAIR
RAMON GOOD MORNING I DO WANT TO
WELCOME EVERYONE TO OUR FIRST
OVERSIGHT HEARING RELATED TO THE
CALIFORNIA CONSUMER FINANCIAL
PROTECTION LAW. I ALSO WANT TO
THANK SENATOR RAMON AND HER
STAFF FOR HELPING ORGANIZE
TODAY'S HEARING WHICH IS
ABSOLUTELY NO EASY TASK IN
TWENTY TWENTY THE LEGISLATURE
PASSED AB EIGHTEEN SIXTY FOUR BY
SENATOR RAMON TO PROVIDE OUR
STATE FINANCIAL REGULATOR WAS
SIGNIFICANT NEW OVERSIGHT. AND
ENFORCEMENT AUTHORITY OVER
CONSUMER FINANCIAL SERVICES AND
PROTECTIONS AS A RESULT OF THE
NEW AUTHORITY THE FBI MAY NOW
TAKE ACTION WHEN A CONSUMER
FINANCIAL SERVICES COMPANY SUCH
AS A DEBT SETTLEMENT PROVIDER A
CREDIT REPAIR ORGANIZATION OR A
EARNED. EARNED WAGE ACCESS
PROVIDER ENGAGES IN UNLAWFUL
UNFAIR DECEPTIVE OR ABUSIVE ACTS
OR PRACTICES THIS AUTHORITIES
BROAD IT IS EXPENSIVE AND IT IS
FORWARD LOOKING THIS IS SO
IMPORTANT BECAUSE THE WORLD OF
FINANCIAL SERVICES EVOLVES
QUICKLY. NEW PRODUCTS EMERGE ALL
THE TIME AND WE NOW HAVE A
REGULATORY FRAMEWORK TO RESPOND
ON BEHALF TO CONSUMERS TO
EMERGING TRENDS I BELIEVE THAT
AB EIGHTEEN SIXTY FOUR TO BE ONE
OF THE MOST CONSEQUENTIAL PIECES
OF LEGISLATION IN THE BANKING
AND FINANCE AREA. IN RECENT
HISTORY AND I AM EXCITED ABOUT
WHAT THIS LAW OR WHAT THIS NEW
AUTHORITY MEANS FOR CALIFORNIANS
WHO WILL BE BETTER PROTECTED
FROM BAD ACTORS AND PREDATORY
PRACTICES HOWEVER IT IS OUR DUTY
AS LEGISLATORS TO ENSURE THAT
THE LAW IS BEING IMPLEMENTED
CORRECTLY. AND THAT THE FBI IS
USING THIS NEW AUTHORITY WISELY
THAT IS WHY AB EIGHTEEN SIXTY
FOUR INCLUDED A NUMBER OF
MECHANISMS TO ALLOW THE
LEGISLATURE TO REVIEW THE F. B.
I.'S ACTIVITIES AND THIS IS THE
IMPETUS FOR TODAY'S HEARING. SO
TODAY WE WILL HEAR FROM KEY D.
FBI STAFF ON HOW THE FIRST YEAR
OF IMPLEMENTATION IS GONE AND I
REALLY AM LOOKING FORWARD TO THE
CONVERSATION AND DISCUSSION TO
BE HAD. THANK YOU CHAIRWOMAN.
THANK YOU. I WOULD ALSO LIKE TO
WELCOME. YOU TO OUR FIRST
OVERSIGHT HEARING RELATED TO THE
CALIFORNIA CONSUMER PROTECTION
LAW. WORKING WITH THE
ADMINISTRATION TO SEE SUCCESSFUL
IMPLEMENTATION OF THIS LAW IS A
TOP PRIORITY OF MINE IS CHAIR OF
THIS COMMITTEE ASSEMBLY OF YOU
MAY KNOW WE STARTED A
CONVERSATION IN TWENTY NINETEEN.
AND WE WANTED TO APPROACH THE
GAPS IN OUR OVERSIGHT. A
FINANCIAL INSTITUTIONS WE HELD
INFORMATIONAL HEARINGS AND
INVITED INVITED THE FORMER HEAD
OF THE CONSUMER FINANCIAL
PROTECTION BUREAU UNDER
PRESIDENT OBAMA TO SHARE HIS
INSIGHTS ON HOW CALIFORNIA CAN
BETTER PROTECT CONSUMERS FROM
UNFAIR. DECEPTIVE AND ABUSIVE
PRACTICES IN THE FINANCIAL
SERVICES INDUSTRY. BUILDING OFF
OF THAT HEARING AND YEARS OF
WORK BY CONSUMER ADVOCATES AND
EXPERIENCE REGULATORS. GOVERNOR
NEWSOM PROPOSED IN HIS TWENTY
TWENTY BUDGET AND EXPANSION OF
AND REMAINING OVER STATE
FINANCIAL REGULATOR TO THE
DEPARTMENT OF FINANCE FOR
PROTECTION INNOVATION. FORTY
pBUDGET PROPOSAL THE LEGISLATURE
PASSED ASSEMBLY BILL EIGHTEEN
SIXTY FOUR THAT PROVIDES THE FBI
WITH BROAD AUTHORITY TO OVERSEE
PROVIDERS OF CONSUMER FINANCIAL
PROTECTIONS AND SERVICES IN
CALIFORNIA. THIS AUTHORITY WAS
MODELED AFTER THE THIRTY
PROVIDED BY CONGRESS WHEN IT
CREATED THE CFPB. IN THE WAKE OF
THE GREAT FINANCIAL CRISIS SINCE
THE FINANCIAL CRISIS WE HAVE
SEEN AN INCREDIBLE AMOUNT OF
INNOVATION IN CONSUMER FINANCIAL
SERVICES PRIMARILY DRIVEN BY NEW
TECHNOLOGIES AND THE CONSUMERS.
GREATER COMFORT WITH
TRANSACTIONS ONLINE THROUGH
MOBILE APPS. I BELIEVE THAT A
LOT OF THIS INNOVATION HAS BEEN
HELPFUL TO CONSUMERS BY
PROVIDING SERVICES MORE BROADLY
MORE CONVENIENTLY AND LESS
EXPENSIVELY THAN HISTORICAL
BUSINESS MODELS. THAT SAID I
THINK THAT THE GREAT FINANCIAL
CRISIS IS AN IMPORTANT REMINDER
OF WHAT CAN HAPPEN IF INNOVATION
AND- SERVICES IS NOT. WITH
ADEQUATE OVERSIGHT AND CONSUMER
PROTECTIONS. THIS NEW LAW THAT
WE PASSED INTO TWENTY WILL
PROVIDE THE F. WITH MORE
RESEARCH. AND AUTHORITYTO LAW.
OUT FOR CALIFORNIA CONSUMERS IN
THE EVOLVING MARKET PLACE I LOOK
FORWARD TO HEARING THE TESTIMONY
TODAY AS WE LEARN ABOUT HOW THE
NEW LAW. I THINK WE NEED TO
REMEMBER THAT WE ARE. ONLY
THROUGH THE FIRST YEAR OF
IMPLEMENTATION AND THAT THE-BUDGET WE APPROVED IN TWENTY
TWENTY. EXPECTED A THREE TO FOUR
YEAR RAMP UP IN THE DEPARTMENT'S
ACTIVITIES SO WE ARE STILL IN
THE EARLY STAGES BUT I LOOK
FORWARD TO A CONTINUED
PARTNERSHIP. BETWEEN THE
LEGISLATURE- AND THE ADMIN. IN
MAKING THE- AND FINANCE
PROTECTION LAWS SUCCESS. BEFORE
WE HEAR FROM THE DEPARTMENT I
WOULD LIKE TO CALL ATTENTION TO
THE ANNUAL REPORT. BY THE FBI
THAT SUMMARIZES ITS ACTIVITIES
IN THE FIRST YEAR OF
IMPLEMENTING NEW LAW. THE REPORT
WAS PROVIDED TO MEMBERS OF BOTH
COMMITTEES IN PREPARATION FOR
THIS HEARING AND CAN BE FOUND ON
OUR COMMITTEE WEBSITES. AS WELL
AS ON OUR DEPARTMENT WEBSITE.
NOW LET'S HEAR FROM A PANELIST
TODAY WE WILL HEAR FROM KEY
LEADERS AT THE FBI WHO ARE
IMPLEMENTING THE NEW LAW. FIRST
WE'LL HEAR FROM COMMISSIONER WHO
IT. WHO I WOULD LIKE TO WELCOME
VIRTUALLY TO OUR HEARING.
WELCOME COMMISSIONER YOU MAY
BEGIN WHEN YOU ARE READY. THANK
YOU GOOD MORNING GOOD MORNING
SENATORS AND ASSEMBLY MEMBERS.
MY NAME IS CLOTILDE LAST YEAR
GOVERNOR NEWSOM APPOINTED ME AS
COMMISSIONER OF THE DEPARTMENT
OF FINANCIAL PROTECTION AND
INNOVATION AND I BEGAN MY NEW
ROLE THIS PAST DECEMBER. IT IS
MY HONOR TO SERVE AS
COMMISSIONER LEADING A TEAM OF
EXTRAORDINARY PUBLIC SERVANTS
WORKING DAY IN AND DAY OUT TO
PROTECT CONSUMERS AND STRENGTHEN
OUR STATE FINANCIAL INDUSTRY.
THANK YOU FOR INVITING ME TO
PROVIDE AN UPDATE ON THE
DEPARTMENT IMPLEMENTATION OF THE
CALIFORNIA CONSUMER FINANCIAL
PROTECTION LAW. I'M JOINED TODAY
BY MY CHIEF DEPUTY CHRIS SCHULTZ
. BRISTLES HAVE BEEN CHIEF
DEPUTY COMMISSIONER SENSE TWENTY
NINETEEN AND SERVED AS ACTING
COMMISSIONER DURING THE SIX
MONTHS BETWEEN FORMER
COMMISSIONER MANNY ALVAREZ IS
DEPARTURE AND MY SWEARING IN. WE
ARE ALSO JOINED BY SENIOR DEPUTY
COMMISSIONER SUZANNE MARTIN DALE
AND DEPUTY COMMISSIONER
CHRISTINE THAT PEDRO THEY HAVE
BEEN CRITICAL TO THE
DEPARTMENT'S IMPLEMENTATION OF
THE CFE L. AS PREVIOUSLY
MENTIONED. IN TWENTY TWENTY THE
LEGISLATURE PASSED AB EIGHTEEN
SIXTY FOUR AUTHORED THEN BY THEN
ASSEMBLY MEMBER LEE MOM NOW
CURRENTLY OVER SENATOR WHICH
SIGNIFICANTLY LEAD EXPANDED THE
STATE'S ABILITY TO PROTECT
CALIFORNIANS AGAINST ABUSIVE AND
PREDATORY FINANCIAL PRODUCTS AND
SERVICES. THE BILL CHANGE THE
DEPARTMENT'S NAME TO THE
DEPARTMENT OF FINANCIAL
PROTECTION AND ANNABETH YOU CAN
TO BETTER REFLECT THE MISSION OF
THE DEPARTMENT INCLUSIVE OF OUR
MISSION TO PROTECT CONSUMERS.
AND PROMOTE RESPONSIBLE
INNOVATION. THE NEW CALIFORNIA
CONSUMER FINANCIAL PROTECTION
LAW EXPANDED THE D. FBI
OVERSIGHT OF FINANCIAL SERVICES
AND PRODUCTS THAT WERE
PREVIOUSLY UNREGULATED OR
LIGHTLY REGULATED AND CLEARLY
ESTABLISHED THE FBI'S AUTHORITY
TO INVESTIGATE UNLAWFUL UNFAIR
DECEPTIVE OR ABUSIVE ACTS AND
PRACTICES IN THE FINANCIAL
SERVICES MARKET. PLACE THE
ENVISION A READ YEAR. THE
EMPLOYMENT AND TRANSFER THE
DEPARTMENT INTO CALIFORNIA. OF
THE CONSUMER FINANCIAL
PROTECTION BUREAU. AS FOR EMBLEM
. THE DEPARTMENT RECEIVED FIFTY
FIVE NEW POSITIONS TO IMPLEMENT
THE CCF OVER THREE YEAR TIME. TO
DATE THE DEPARTMENT HAS HIRED
THIRTY ONE OF THE CURRENT
AVAILABLE FORTY FIVE POSITIONS
FOURTEEN OF THESE FORTY FIVE
POSITIONS BECAME AVAILABLE ON
JANUARY TWENTY TWO. THE HIRING
RATE TRANSLATES 271% OF TOTAL
AUTHORIZED POSITIONS WITH THE
BALLOTS TO COME ON BOARD IN THE
- TWENTY TWO TWO THREE. WE ARE
LASER FOCUSED AND- WORKING ON
FILLING EACH AND EVERY ONE OF
THESE THANK VISIT. TO IMPLEMENT
THE NEW LAW BUT BY FOR TO BE
WITH END FBI THE STATE. WITH THE
BUDGET OF NINE THREE MILLION IN
FISCAL YEAR. TWENTY TWENTY ONE
TWENTY TWO THE BUDGET INCLUDES.
FUNDING FOR A NEW DIVISION
OVERSEE EXPANDED CATEGORIES OF
FINANCIAL PRODUCTS AND SERVICES
ADDITIONAL. SERVICES INFORCE AND
LEGAL STAFF FUNDING FOR THE
OFFICE OF FINANCIAL TECHNOLOGY
INNOVATION OUR NEW MARKET
MONITORING AND RESEARCH TEAM AND
ENHANCE COMMUNICATIONS AT OUT
REACH DIVISION THAT IS BRINGING
GOVERNMENT. TO THE PEOPLE. THE
KICK OFF IS READ TRANSFER. LAST
YEAR BETTER SOUGHT. BROWN'S OF
VARIOUS ASPECTS OF CC YELLS. THE
DEPARTMENT ISSUED MORE
INVITATIONS TO COMMENT AND REESE
SEVENTY ON LETTER. THE TOP THE
CATEGORIES INCLUDE THE FILE.
RIGHT PROCESSES IN PROCEED IN TO
CONSUMER. THE FINDING UNFAIR
DECEPTIVE AND ABUSIVE PRACTICES
IN RELATION TO SERVICES. AND THE
PRODUCT PROVIDED TO SMALL
BUSINESSES SMALL BUSINESSES THAT
ARE THE ENGINE OF OUR ECONOMY.
REGISTRATION OF CERTAIN NEW
CATEGORIES OF FINANCIAL PRODUCTS
AND SERVICES. HARTNETT HAS ALSO
BEEN DILIGENTLY WORKING ON
RULEMAKING PACKAGES TO IMPLEMENT
THE C. C. F. P. L. THE
DEPARTMENT IS CURRENTLY PURSUING
THREE RULEMAKING PACKAGES. THE
FIRST ROOM PACKAGE WILL
ESTABLISH PROCEDURES FOR HOW
COME. RESPOND TO CONSUMER
COMPLAINTS AND ENQUIRES. THIS
ROOM PACKAGE APPROVAL DATE IS
ESTIMATED TO BE IN MARCH OF
TWENTY TWENTY THREE. THIS SECOND
PACKAGE WILL COVER DEFINITIONS
AND PROHIBITIONS REGARDING
UNFAIR DECEPTIVE AND ABUSIVE
ACTS AND PRACTICES IN CONNECTION
WITH FINANCIAL SERVICES AND
PRODUCTS TO SMALL BUSINESSES.
THIS IS A DARK TARGET DATE OF
APRIL TWENTY. TWENTY THREE WELL
LAST PACKAGE WILL ESTABLISH
REGISTRATION REQUIREMENTS FOR
REGISTRATION UNDER CC FPL LOOK
INITIAL REGISTRANT CATEGORIES
ARE DEBT SETTLEMENT SERVICES
STUDENT DEBT RELIEF SERVICES
HOUSE SECONDARY STUDENT FINE.
AND THE WAY THEY BAY OF VANCE'S
. WE'VE TO BEGIN WITH APPLE FROM
THESE FIRST GROUP WRITERS. BEGIN
FALL OF TWENTY TWENTY THREE. THE
CCF PLK THE DEPARTMENT THE
ABILITY TO TAKE ACTION AGAINST
COMPANIES THAT VIOLATE CONSUMER
FINANCIAL PROTECTION LAWS
INCLUDING ACTIONS ARE PRACTICES
THAT ARE UNFAIR DECEPTIVE OR
ABUSIVE. SEN THE CFPL BECAME
EFFECTIVE THE DEPARTMENT HAS
OPENED A UNDRED AND SIX
INVESTIGATIONS RESULTING IN
FORTY NINE PUBLIC ENFORCEMENT
ACTIONS INCLUDING NINE HUNDRED
AND FIFTY THOUSAND AND
RESTITUTION TO CONSUMERS. ONE
SUCH EXAMPLE INCLUDES FIVE THE
FBI ENFORCEMENT ACTIONS AGAINST
SEPARATE STUDENT BEING WE THAT
COMPANIES OR FALSE ADVERTISING
AND EVEN LEGAL B. COLLECTIONS
RESULTING IN PENALTIES AND
REFUNDS OF NEARLY OVER ONE POINT
FOUR MILLION. AT HOME OF C. PL
WITH HOW WE IN. WITH BOTH
INDUSTRY COMMUNITY BASED GROUPS
AND CONSUMER ADVOCATES AS WELL
AS OUR- GOVERNMENT PARTNERS AT
BILL LOCAL STATE AND FEDERAL
LEVEL. WHAT THE CCF PO HOW MANY
DO YOU HAVE YEAH. A STATE LEVEL
CFPB. CALIFORNIANS NEED TO
UNDERSTAND WHO WE ARE AND HOW WE
CAN HELP RESOLVE THEIR PROBLEMS
. AN INDUSTRY NEEDS TO TRUST THE
DEPARTMENT TO LISTEN TO THEIR
CONCERNS. SINCE THE C. F. P. L.
WAS PASSED THE DEPARTMENT HAS
HELD READ CONSUMER AND COMMUNITY
ROUNDTABLES SLB. OF EXTERNAL
STAKEHOLDER MEETINGS THE FBI
EXECUTIVE REPRESENTATIVE SEVERAL
EVENTS AND CONFERENCES FOR BOTH
INDUSTRY TRADE GROUPS IN UNITY
BASED GROUPS AND CONSUMER
ADVOCATES. THE OTHER OF PET NOT
IN. ALSO MET WITH THE Y. RANGE
OF STAKEHOLDERS INCLUDE VENTURE
CAPITALIST ENTREPRENEURS IS OVER
ADVOCATES ANNABETH BIG WEEKLY
OFFICE HOURS PROVIDING
INNOVATORS AND INDUSTRY LEADERS
A MORE CASUAL OPPORTUNITY TO
MEET WITH THE DEPARTMENT. THE
STRAW TO LIST AT UNDER. CONCERN
IN CHALLENGE. COMPANIES AN
INDUSTRY FACING THEN USING THESE
CONVERSATIONS. HELP WITH
DEPARTMENT AGAIN OF FIVE AND
THEN IT GAVE UP. TO ROOF.
INNOVATION TO CONNECT WITH A
WIDE RANGE OF CALIFORNIA. WILL
DEPARTMENT HAS CREATED AND WANTS
A STATE WIDE. LINGUAL
COMMUNICATIONS CAMPAIGN TO HELP
ENSURE THAT CONSUMERS UNDERSTAND
AND KNOW WHEN TO FILE A
COMPLAINT WITH ARE TARGETED
OUTREACH TEAM IS FOCUSING ON
STUDENTS VETERANS THE MILITARY
SENIORS IMMIGRANTS UNDERSERVED
POPULATIONS AND I AM A PROUD
MEMBER OF THAT OUTREACH TEAM WE
ARE BRINGING GOVERNMENT TO THE
PEOPLE. NEW CAN EDUCATION
MATERIALS HAVE BEEN CREATED TO
INFORM ABOUT THE MERGING
FINANCIAL PRODUCTS AND SERVICES
. FINALLY LIT APARTMENT HAS
THANK YOU IF CONSUMER PROTECTION
ROLES SERIOUSLY INCREASING
PUBLIC AWARENESS OF ITS EXPANDED
AUTHORITY TO MEDIA INTERVIEWS
THAT HAVE LED TO AN INCREASE IN
CONSUMER COMPLAINTS
INVESTIGATIONS AND ENFORCEMENT
ACTIONS. THE FBI HAS TAKEN
NUMEROUS STEPS TO ENSURE IT IS
RESPONSIBLE TO CONSUMER
COMPLAINTS AND IS SPENDING A
VERY VERY STRONG SIGNAL THAT WE
WILL UTILIZE THE C. F. P. L. TO
PROTECT CONSUMERS AND
COMMUNITIES ACROSS CALIFORNIA. I
HOTLINE RECEIVES HUNDRED AND
THIRTY EIGHT SIX HUNDRED AND
THIRTY EIGHT CC FPL COMPLAINTS
IN TWENTY TWENTY ONE AND THE OF.
DIVISION RECEIVED 30% MORE
COMPLY INTO TWENTY ONE COMPARED
TO TWENTY TWENTY INCREASE
ATTRIBUTED TO THE C. C. F. P. L.
AND OUR OUTREACH EFFORTS. WHAT
TO EXPECT NEXT. THE DEPARTMENT
WILL CONTINUE TO FAITHFULLY
IMPLEMENT THESE NEW LAWS AND
WORK TOWARDS ENCOURAGING SAFE
AND RESPONSIBLE INNOVATION
RESULTING IN INDUSTRY GROW WHILE
AT THE SAME TIME ENSURING THAT
CALIFORNIA CONSUMERS ARE
PROTECTED. OVER THE NEXT YEAR WE
WILL CONTINUE TO HIRE AS NEW
BUSINESSES COME ONLINE AS
DICTATED BY THE BUDGET
ALLOCATION THE DEPARTMENT WILL
FINALIZE THE REGULATIONS
CURRENTLY BEING PROCESSED IN
LINE WITH OUR ORIGINAL THREE
YEAR. IMPLEMENTATION PLAN FOR
REGISTRATION AND THE STATUTORY
REQUIRED REGULATIONS COMPLAINT
FAMILY. BEYOND THAT THE FBI WILL
CONTINUE TO DRAFT REGULATIONS
WHERE NEEDED TO PROVIDE INDUSTRY
WITH ADDITIONAL CLARITY BEING
CAREFUL TO SOLICIT FEEDBACK FROM
ALL STAKEHOLDERS. THE MARKET
RESETS FUNCTION WILL SPAN WITH
ADDITIONAL NEW STAFF AND NEW
PROJECTS IDENTIFYING NEW TRENDS
IN PRODUCTS AND SERVICES AND
HELPING CALIFORNIA'S BETTER
UNDERSTAND THE IMPACT ON
CONSUMERS THE OFFICE OF
FINANCIAL TECHNOLOGY INNOVATION
WILL CONTINUE TO DEVELOP.
RELATIONSHIPS WITH ENTREPRENEURS
BUSINESSES INNOVATORS ACADEMICS
AND COMMUNITY BASED GROUPS ARE
CONSUMER SERVICES AND
ENFORCEMENT TEAMS WILL CONTINUE
TO WORK ALONGSIDE CONSUMERS TO
HELP ADDRESS COMPLAINTS. AND TO
INSURE BAD ACTORS DO NOT TAKE
ADVANTAGE OF THEM WE ARE EXCITED
AND WE ALREADY. FOR THE YEAR
AHEAD. SENIOR DEBT COMMISSIONER
SUZANNE MARTIN THEY'LL CHIEF
DEPUTY CHRIS SCHULTZ DEPUTY
pAND I ARE AVAILABLE TO ANSWER
ANY QUESTION YOU MAY HAVE AT
THIS TIME AND I WANT TO EXPRESS
OUR DEEP APPRECIATION FOR
INVITING US TO SPEAK TO YOU
TODAY THANK YOU VERY MUCH FOR
YOUR TIME. THANK YOU SO MUCH
COMMISSIONER GREAT TO HEAR FROM
YOU NEXT WE'LL HEAR FROM CHIEF
DEPUTY COMMISSIONER CHRIS
SCHULTZ MISTER SCHULTZ PLEASE
PROCEED WHEN YOU ARE READY. I
THANK YOU SO MUCH ADJOURNMENTS I
DON'T HAVE ANY PREPARED REMARKS
AND I JUST HERE TO HELP THE
COMMISSION ANSWER ANY QUESTIONS
THANKS SO MUCH GREAT THANK YOU.
OUR NEXT PRESENTER IS SENIOR
DEPUTY COMMISSIONER SUZANNE
MARTINDALE WHO IS. THE HEAD OF
THE CONSUMER PROTECTION DIVISION
MISS MARTIN DEL WELCOME
EMPLOYEES BEGIN WHEN YOU'RE
READY. THIS THANK YOU MADAM
CHAIR GOOD MORNING EVERYONE ON
THE LIKE THE CHIEF DEPUTY I AM
HERE TO ASSIST THE COMMISSIONER
IN THE Q. AND A PORTION THANK
YOU SO MUCH. AND FINALLY- WE
ALSO HAVE A DEPUTY COMMISSIONER
CHRISTINA TATE CRETELLA- AND YOU
I AM NOT SURE IF YOU HAVE. A
PREPARED REMARKS BUT IF SO WE'D
LIKE TO GIVE YOU THE OPPORTUNITY
TO ASSURE THIS REMARK. GOOD
MORNING THANK YOU I DO NOT HAVE
PREPARED REMARKS TODAY THANK YOU
GREAT. ALL RIGHT THANK YOU AND
TO OUR COMMISSIONER AND MEMBERS
WE ARE GOING TO MOVE THIS AT FOR
ANY QUESTIONS ARE FOR ANY OF YOU
FOR ANY OF OUR- AS DEPARTMENT'S
. HEAD. SENATOR BRADFORD THANK
YOU MADAM APPRECIATE THAT VERY
THOROUGH OVERVIEW OF WHAT THE
DEPARTMENT HAS TAKEN ON AND I
THINK IT'S LOFTY AND-
CHALLENGING I'M JUST CURIOUS ARE
THEY DOING THIS IN A SILO OR
COORDINATION WITH OTHER STATE
AGENCIES AND DEPARTMENTS BECAUSE
IT'S ONE THING FOR THEM TO MOVE
INTO THIS TECHNOLOGY BROWN BUT
HAVE DEPARTMENTS LIKE D. WHO ARE
STILL IN THIS AGE ARMS TRYING TO
SEE IF THERE'S ANY COORDINATION
AND ANOTHER JUST COULD UP AND
RUNNING BUT I THINK IN ORDER FOR
THIS TO. REALLY BE EFFECTIVE IT
HAS TO BE- INTERTWINING
INTEGRATED TO WITH OTHER
AGENCIES AS WELL THAT. AND THE
RESOURCES. GREAT AND SO WE WILL
COMMISSIONER OR ANYBODY ELSE
WOULD LIKE TO TALK A LITTLE BIT
ABOUT. THE PARTNERSHIP WITH
OTHER STATES. YES WELL FIRST AND
FOREMOST I WANT TO INDICATE WE
ARE WORKING WITH LOCALLY. WE ARE
WORKING WITH OTHER STATE
DEPARTMENTS AND WE'RE WORKING
WITH OUR FEDERAL PARTNERS. I
BECAUSE SO MANY EMERGING
PRODUCTS THAT IS IMPORTANT THAT
- WE COLLABORATE WITH ONE
ANOTHER IN ORDER TO GET THE BEST
PRACTICES AN EXAMPLE OF JUST
LAVERY MOTHER FEDERAL PARTNERS
SAID RAPID I WAS JUST IN
WASHINGTON DC MEETING WHERE R.
CHAIR OF THE HOUSE IN BANKING
SERVICES. I CHAIR MAXINE WATERS
MEETING WITH THE SENATE BANKING
AND HOW SERVICES MEETING BETH OF
THE- ROWLEY SO BURKE AS AWFULLY
WITH OF THE F. FEDERAL RESERVE
BOARD AS WE DISCUSS THESE ISSUES
AND PLAN AHEAD HOW WE WERE GOING
TO MOVE I WAS AT THAT MEETING.
AS A REPRESENTATIVE FROM
CALIFORNIA ALONG WITH ALL THE
OTHER BANK EXAMINERS FROM THEIR
RESPECTIVE STATES AND I WOULD
SAY THAT WE MEET ON A REGULAR
BASIS WE NEED ON THE RATE
REGULAR BASES WITH OUR SEC.
PARTNERS AS WELL AS S. B. C.
PARTNERS IN OTHER STATES AND IN
TERMS OF COLLABORATING WITH AND. STATE DEPARTMENT PARTICULARLY
ON A NUMBER OF OUR OUT REACH IN
THIS ARE DEPARTMENT. ACCRUED IN
REGARDS TO THIS OUT REACH AND
ARE CRUCIAL AS WE MOVE FORWARD
IN TERMS OF OUR NEW- A MERGING
PRODUCTS AND MOST OF ALL WE
REALLY WANT TO STRENGTHEN. OUR
PARTNERSHIP WITH THE LEGISLATURE
WHICH WE ARE DEEPLY APPRECIATIVE
FOR ALL THE SUPPORT THAT YOU
HAVE GIVEN US SO FAR AND WE
BELIEVE THAT THE LEGISLATURE.
ANNA PER WITH. ISM IMPORTANT OF
ALL. TO HAVE ONE FOLLOW TO THE
CURE LOSCO DO YOU HAVE ANY
SUGGESTIONS ON HOW WE AS A
LEGISLATURE CONFEDERACY SHOOT
INTO IN WHICH YOU'RE TRYING TO
ACCOMPLISH HERE. YES ONE OF THE
THINGS I DID WHEN I FIRST CAME
INTO THE DEPARTMENT- I WOULD I
WILL TO TAKE GOVERNMENT THE
PEOPLE WE'RE NOT ONLY FOR THE
PEOPLE OF THE US. AND THAT'S WHY
WANT- THANK Y. MUNICH K. M.
CAMPAIGN. THAT ALSO INCLUDE
SIGNIFICAN OUT FOR ME TO. BASED
GROUPS THROUGHOUT CALIFORNIA.
NOW I COME IT WAS GROWN UP IN
THE INNER CITY SO I'VE INNER
CITY POVERTY BUT I STARTED
PERSONAL MORAL POVERTY. AND IT'S
ONE THING I KNOW FROM GROWING UP
IN THOSE COMMUNITIES. BUT MANY
TIMES WE DON'T HAVE A SEAT AT
THE TABLE LEVEL FIND OUT ABOUT
THE MERGING PRODUCTS OR LAWS
THAT CAN PROTECT US. AND THAT'S
WHY WE HAVE LAUNCHED WITHOUT
ANYTHING. WHAT WHAT IS MOST
IMPORTANT IN THAT OUTREACH
CAMPAIGN. IS A LEGISLATURE THEIR
CONSTITUENCIES YOU KNOW YOU'RE
CONSTITUENCIES IN MANY YES THIS
IS BETTER THAN WE DO. AND THE
MOST IMPORTANT THING WE CAN DO.
IS GOAL TO WHERE YOU DIRECT US
IN YOUR DISTRICTS TO ENSURE THAT
YOUR- ARE WHERE THE LAW WHERE TO
GO WHEN THEY A COMPLAIN. WHETHER
IT'S ONLINE OR HARLEY KNOWS. AND
JUST AS IMPORTANT. WELL YOUR
BILL. IN PARTICULAR YEARS BIZ
WHICH ARE THE FIELD. OF THE
NATION'S. AND PAYING NO TO CALL
WE MAY HAVE ISSUES AT FOR YOUR
BUSINESS THERE DO WELL- PLEASE
FEEL FREE TO ME FOR THEM TO US
FOR FURTHER CLEAR DE REGULATION
. AND I WOULD SAY HOSPITAL IN
WITH THAT PART. IF YOU WOULD
LIKE MY CELL OR ANY MEMBER OF
OUR SENIOR EXECUTIVE TEAM TO
COME AND SPEAK TO YOUR
CONSTITUENCY OR ANY OF THAT WITH
IN YOUR DISTRICT WE WILL BE
THERE. AND AS LONG AS WE
CONTINUE AS WE HAVE. IN
COLLABORATION AND IN REGULAR
DIALOGUE. I HAVE NO DOUBT IN MY
MIND THAT THIS DEPARTMENT IS
GOING TO BE A MODEL FOR THE
NATION. THANK BEARD COMMISSIONER
I WE HAVE QUESTIONS FROM
ASSEMBLY MEMBER CHILD. CHOI
CHOICE MEMBER CHOI HAVE QUESTION
SPEAK OF- BANKING AND THE
FINANCIALPROTECTION FOR
CONSUMERS. I WONDER. IF THERE
ARE ANY- WITNESSES- IN LAW
PROTECTING THE SENIOR CITIZENS-
PARTICULARLY- PATIENTS ARE
SUFFERING FROM DEMENTIA- THE
CARE GIVERS OR EVEN FIND FAMILY
MEMBERS OR RELATIVES WHO HAVE-
RISKY. THE AUTHORITY TO GOVERN
THEIR FINANCIAL AFFAIRS AND THE
MANY TIMES- I HEAR THAT THE
FUNDS HAD BEEN DEPLETED- AND THE
STOLEN AND THAT THIS IS SECOND-
PHENOM IN OUR- AND IT IS
SUPPORTER TRUST BASIS- BUT THE-
I AM WONDERING WHETHER THE- YOU
AT THE HAS ANY COMPLAINTS OR
CONCERNS SO- WHAT THE- LOW CAN
BE ENACTED. TO PROTECT OF THOSE
PEOPLE WHO ARE VULNERABLE. THANK
YOU VERY MUCH FOR THAT QUESTION
. THE BEAUTY OF THIS LOS CC P.
L. IS IT GIVES US THE AUTHORITY
TO IMPOSE ALL. THE WHILE SOME
ARE FEDERAL OF THOSE WHICH ARE
STATE. AND WE ARE TARGETING
FIRST OUR MOST. IN OUR
POPULATION. AND THAT IS OUR
SENIORS ARE SENIORS. AS WELL AS
OUR MILITARY AS WELL AS OUR
STUDENTS AS WELL AS OUR NEW
AMERICANS AND IMMIGRANTS AND
BILLS THAT ARE FROM UNDERSERVED
COMMUNITIES LIKE ONES I GREW UP.
SO THAT WE HAVE A SPECIAL LASER
FOCUS ON. BECAUSE BACK THOSE.
ARE THE ONES THAT ARE THE MOST
LONGER WHEN IT COMES TO
PREDATORY LENDING AND WHEN IT
COMES TO SCAM. I'D LIKE TO TURN
TO BE HEAD OF OUR CONSUMER
PROTECTION DIVISION FUDAN MARTIN
DALES SENIOR DEPUTY COMMISSIONER
THE BILL INTO SOME MORE DETAIL
OF SOME OF THE OTHER THINGS THAT
WE'RE DOING TO FOCUS ON OUR
VULNERABLE POPULATIONS. THANK
YOU COMMISSIONER AND THANK YOU
ASSEMBLY MEMBER FOR THE
QUESTION- YOU'RE REFERRING TO
SITUATIONS THAT- YOU KNOW COULD
BE ELDER FINANCIAL FRAUD AND
ABUSE- I CAN TELL YOU I HAVE AN
IMMEDIATE FAMILY MEMBER WITH
DEMENTIA SO THIS HITS VERY CLOSE
TO HOME FOR ME- YOU KNOW WE'D AS
THE COMMISSIONER RIGHTLY STATES
WE DO ENFORCE YOU KNOW CONSUMER
FINANCIAL LAWS THAT DO PROHIBIT
UNFAIR DECEPTIVE AND ABUSIVE
ACTS AND PRACTICES. ARE AND WE
DO HAVE A MANDATE TO
SPECIFICALLY FOCUS ON CERTAIN
POPULATIONS THAT TEND TO BE
PREYED UPON- BY BAD ACTORS IN
THIS SPACE AND THE ELDERLY I
MOST CERTAINLY CAN- YOU KNOW BE
ONE OF THOSE- OUR POPULATIONS-
IT'S IMPORTANT TO NOTE THAT WE
ARE NOT A CRIMINAL LAW
ENFORCEMENT AGENCY ON HOWEVER WE
DO. YOU KNOW WE DO TALK
REGULARLY TO OUR CRIMINAL LAW
ENFORCEMENT PARTNERS AND YOU
WERE FOR POTENTIAL CRIMINAL
MATTERS THAT WAY SO YOU KNOW WE
DO FEEL THAT WE HAVE YOU KNOW
APPROPRIATE LAWS ON THE BOOKS
THAT WE CAN FORCE IN THE CIVIL
CONTEXT WHICH TO THE EXTENT THAT
WE DETECT POTENTIAL CRIMINAL
FRAUD WE WOULD WERE THAT OUT OF
YOUR HOUSE TO FOLLOW UP YOUR
OFFICE ON THE BE LIKE TO JUST.
THIS IN MORE DETAIL. THANK YOU.
THANK YOU SOME CHOI CHECK
GRAYSON. THANK YOU CHAIR THE
MOMENT AND ADDS INTERESTED IS IT
POSSIBLE FOR YOU TO DESCRIBE THE
DEPARTMENT'S APPROACH TO
PRIORITIZING REGISTRATION
REQUIREMENTS BY LET'S SAY BY
TYPE OF FINANCIAL PRODUCT OR OR
SERVICE. YES WHAT WE DO AND
DETERMINE THE PRIORITIES FOR
REGISTRATION WE TAKE SEVERAL
FACTORS INTO CONSIDERATION.
FIRST WE TAKE THE INFORMATION
THAT WE RECEIVED FROM OUR
ENFORCEMENT INVESTIGATIONS.
SECOND WE TAKE THE INFORMATION
THAT WE RECEIVE THEM FROM
CONSUMER COMPLAINTS AND I WOULD
INDICATE. WE REVIEW EVEY SINGLE
THING SOMEWHERE COMPLAINT
BECOMES. AND WE HAVE A STAFF
THAT INCLUDES HI TRAINED LEAD
PROFESSOR. WE REVIEW IN. THAT WE
RECEIVE NO PUBLIC INPUT AND THAT
IS WHY SO IMPORTANT FOR US TO
GET OUT. BECAUSE THE PUBLIC IS
WHAT'S MOST IMPORTANT FOR US IN
SETTING OUR PRIORITIES. AND WE
REVIEW THE INFORMATION THAT WE
RECEIVED FROM OUR STAKEHOLDER
MEETINGS AND AS I MENTIONED
PREVIOUSLY WE ARE CONTINUOUSLY
HOLDING STAKEHOLDER MEETINGS AND
ROUNDTABLES THROUGHOUT
CALIFORNIA. AND THROUGH THE
SOURCES OF THIS INFORMATION WE
IDENTIFY PRODUCT CATEGORIES THAT
ARE POSING A RISK TO THE
CONSUMER. LARA ARE INCREASING IN
MARKET SHARE AND COULD BENEFIT
FROM SOME REGULATORY CLEARANCE.
AND THAT'S WHY WE CAME UP WITH
BASED ON THAT INFORMATION LOOK
FOR PRODUCT CATEGORIES OF DEBT
SETTLEMENT STUDENT DEBT RELIEF
SERVICES PRIVATE POSTSECONDARY
EDUCATION FINANCING AND EARNED
WAGE AXIS BUT I WANT TO
EMPHASIZE THIS IS JUST THE FIRST
WAY. THIS IS JUST THE FIRST WAY
. AS WE CONTINUALLY RECEIVE THE
INFORMATION FROM THE AREAS THAT
I JUST MENTIONED THERE WILL BE
ADDITIONAL CATEGORIES. AND
PENDING FURTHER RESEARCH
INVESTIGATION AND STAKEHOLDER
ENGAGEMENT THOSE CATEGORIES WILL
ONLY EXPAND. IN ADDITION TO THAT
WE FOLLOW IT ALL OF THESE
REGULATIONS. B. PROCESS AS THE
FINE. UNDER THE LAW INVITES
ADMINISTRATIVE PROCEDURE AND WE
REGULARLY UPDATE. LEGISLATIVE
COMMITTEE STAFF REGARDING OUR
PROGRESS ON THE REGULATIONS YOU
COMMISSIONER THANK YOU SO VERY
MUCH FOR THAT RESPONSE AND I
KNOW YOU'RE VERY PASSIONATE
ABOUT THIS NEXT QUESTION AND I
ONLY MET THAT I'D I WOULD LIKE
TO KNOW IF IT'S POSSIBLE THAT
YOU CAN GIVE AN UPDATE ON THE
WORK OF THE F. B. I.'S NEW
RESEARCH TEAM AND THE TOPICS OF
STUDY WILL IT BE PUBLISHING DATA
pREASON WHY I ASK THIS QUESTION
IS BECAUSE- THERE'S INTEREST IN
ISSUES OF ACCESS AND
AFFORDABILITY. AND I'M JUST
CURIOUS TO SEE ANY DATA ON WHAT
TYPES OF PRODUCTS OR SERVICES
CALIFORNIANS ARE USING AND HOW
THIS IS CHANGING OVER TIME. YES
YOU'RE RIGHT I'M VERY PASSIONATE
BECAUSE OUR BRANDING FUNCTION
FOR OUR DEPARTMENT- WHICH HAS
HISTORICALLY HAVE NOT HAD- DATA
SCIENCES ONBOARD. WE HAVE THEM
NOW AND WE'RE IN THE EARLY
STAGES OF UPDATING OUR BUSINESS-
PROCESSES AND WE ARE ALSO AWARE
THAT THERE'S A GREAT AMOUNT OF
STAKEHOLDER INTERESTS IN THIS
DATA WHICH WILL INFORM OUR
PRIORITIES INTO THE FUTURE. ALSO
WILL GIVE ALL OF US A BETTER
IDEA OF WHAT THE TRENDS ARE IN
THESE FINANCIAL PRODUCTS AND
SERVICES. NOW FOR NOW AS OUR
RESEARCH TEAM. IS ANALYZING THE
DATA IT IS CONFIDENTIAL PURSUANT
TO A MEMORANDUM OF UNDERSTANDING
THAT WE HAVE WITHTHE NUMEROUS
COMPANIES THAT WE'RE WORKING
WITH TO BE ABLE TO OBTAIN THE
DATA. BUT WE DO HOPE IN THE
FUTURE THAT WE'RE GOING TO BE
ABLE TO PUBLICIZE AT A HIGH
LEVEL THE AGGREGATE FINALLY. I
WOULD ALSO LIKE TO TURN IT OVER
TO OUR SENIOR DEPUTY
COMMISSIONER MARTIN DALE WHO HAS
JUST AS MUCH EXCITEMENT ABOUT
THIS AREA VALUE IF NOT MORE.
THANK YOU COMMISSIONER- AND USED
TO BUILD UPON- THE
COMMISSIONER'S RESPONSE I KNOW
WE LAUNCHED OUR RESEARCH TEAM
LAST FALL SO IT IS EARLY DAYS WE
NEVER HAD RESEARCH DATA
SPECIALIST IN OUR DEPARTMENT
BEFORE SO WE'RE REALLY STARTING
BY WITH DOING A THREE SIXTY
INTERNALLY. KNOW WHAT DATA
SOURCES DO WE HOW DO WE HAVE THE
TOOLS WE NEED TO DO THE KIND OF
DATA ANALYTICS THAT IS
CONTEMPLATED BY THE CCF PL SO WE
CAN BE FIRST AND FOREMOST A
SMARTER ABOUT HOW WE DO. HOW WE
ALLOCATE OUR OWN INTERNAL
RESOURCES AND PRIORITIZE OUR
ISSUES BUT THEN YES WE DO HOPE
ARE GOING FORWARD TO BE ABLE TO
LEVERAGE THIS TEAM TO PROVIDE
DATA TO THE PUBLIC A REGARDING-
WHAT WE'RE LEARNING MARKET
TRENDS- SO YOU KNOW WE DO HAVE
SOME WORKSTREAMS ALREADY IN
FLIGHT RIGHT NOW WE KNOW THERE
IS GREAT STAKEHOLDER INTEREST IN
SOME OF THE DATA THAT WE'RE
COLLECTING AND- ANALYZING. IN
TERMS OF GETTING YOUR CUSTOMER
LEVEL DATA INDICATE CONSUMER
USAGE THAT CAN ACTUALLY BE
DIFFICULT TO OBTAIN IN PART
BECAUSE SOME COMPANIES DON'T
EVEN COLLECT THAT KIND OF DATA
BUT WE ARE GOING TO LEVERAGE
WHATEVER DATA SOURCES WE CAN
GET. DIRECTLY FROM COMPANIES
FROM REGULATORY PARTNERS AND YOU
HOPE TO OUT YOU KNOW GOING
FORWARD BE ABLE TO- RELEASED YOU
KNOW PUBLIC AGGREGATE
INFORMATION- SO THAT PEOPLE ARE
UNDERSTANDING WHAT MORE.
LEARNING AND IDENTIFYING MARKET
TRENDS. GREAT THANK YOU VERY
MUCH OF MY FINAL QUESTION. AND
IT'S JUST REALLY ABOUT. A D. F.
P. EYES APPROACH WHAT IS THE
APPROACH OF FOR DF PI. IN
CONSIDERATION OF FINANCIAL
ASSETS- IN PARTICULAR CRYPTO.
WELL THE BEAUTY OF THE C. F. P.
YEAH IS IT GAVE US THE AUTHORITY
. TO REGULATE. ALL FINANCIAL
PRODUCTS AND SERVICES AND THE
EXISTING FEDERAL AND STATE LAWS
WE HAVE THE AUTHORITY TO ENFORCE
SOME WE DO HAVE THE AUTHORITY TO
REGULATE CRYPTO CURRENCY I
WANTED TO PUT THAT ISSUE TO
REST. BUT JUST LIKE ANY OTHER
FINANCIAL PRODUCTS. WE ARE GOING
TO MOVE IN ACCORDING WILL BE A
MINISTRATION PROCEDURES AT. AND
ACCORDING TO THE TIMELINE ON THE
ADMINISTRATIVE PROCEDURES THAT
BUT FIRST OFF I DO BELIEVE THAT
IN DEVELOPING REGULATION. ONE
DOESN'T DO IT IN A VACUUM.
REGULATION IS A VERY DYNAMIC AND
SO WE ARE GOING TO BE MEETING
WITH. ALL THE STAKEHOLDERS AND
WE MET WITH A SIGNIFICANT NUMBER
OF STAKEHOLDERS ALREADY. BUT
WE'RE GOING TO BE REALLY LAYS
ARENA M. I'M MEETING WITH THE
STAKEHOLDERS IN THE AREA OF
CRYPTO CURRENCY. FROM THE
CONSUMERS WHO ARE AFFECTED BY IT
. TO THE INDUSTRY AND
CRYPTOCURRENCY COMPANIES. THE
BANKS WHICH MAY BE HOLDING
CRYPTOCURRENCY OR INVOLVED IN
LOANS OF CRYPTOCURRENCY. AND RUN
THAT INFORMATION WE WILL THEN
LOOK AS WE DO IN EVERY FINANCIAL
PRODUCTS. VETERANS WITH CONSUMER
COMPLAINTS THE RESULTS OF OUR
INVESTIGATION AT ALL PUBLIC
INPUT IS STAKEHOLDER MEETINGS.
AND THEN WE WILL DRAFT
REGULATIONS THAT WILL THEN GO
THROUGH THE A MINISTRY TO
PROCEDURE SO THAT EVERY VOICE IS
HEARD IN THIS AREA AND WHEN I
MEAN EVERY BOYS I NEED EVERY
POLICE. THANK YOU COMMISSIONER
THANK YOU TO YOUR STAFF AS WELL
. THANK YOU COMMISSIONER THE NO
MORE QUESTIONS FROM THE MEMBERS-
HEY DO YOU HAVE A COUPLE
QUESTIONS AND I'LL I GUESS I'LL
JUST PIGGY BACK ON WHAT YOU'RE
GRAYSON JUST ASKED YOU- THIS
MORNING AT ABOUT NINE AM- THERE
WAS AN EXECUTIVE ORDER RELEASED
BY OUR GOVERNOR RELATED- TO
DIGITAL ASSETS AND I AM
WONDERING IF YOU CAN COMMENT ON
IT- GIVING YOUR ROLE COME IN
BROADLY ON IT GIVING YOUR ROLE
IN- REGULATING THEM AND DIGITAL
CURRENCIES BUT ALSO BEING
SUPPORTIVE OF FINANCIAL
INNOVATION AND OF COURSE KEEPING
CONSUMER PROTECTIONS IN MIND-
ANY INITIAL THOUGHTS OR
REACTIONS THAT YOU COULD SHARE
WITH US. YES THE FIRST AND
FOREMOST WE EMBRACE BIG SECOND
QUARTER. IN A FIRM. ALREADY M.
C. C. F. P. L. TO REGULATE
CRYPTO. AND DIGITAL ASSETS IT
ALSO RECOGNIZES THAT CALIFORNIA
IS THE LEADER. AND TECHNOLOGY
INNOVATION WE ARE THE LEADER AND
ALL EYES ARE LOOKING RIGHT NOW
TO SEE WHAT CALIFORNIA IS GOING
TO DO. I WE ARE THE LEADER
BECAUSE- WE HAVE THE BEST IN
TERMS OF RESEARCH AND THE BALLOT
. WE HAVE. LARGEST AMOUNT OF
INVESTMENT IN VENTURE CAPITAL IN
CRYPTOCURRENCY THAN ANY OTHER
CITY OR STATE IN THE COUNTRY IN
FACT WHEN YOU COMPARE.
CALIFORNIA ANY OTHER. STATE LIKE
NINE TIMES WITH THAT. WE ARE THE
LEADER OF THE FUTURE YEAH I JUST
GOT FINISHED- BEING EXECUTIVE
DIRECTOR ROLE THE BEARS OUT
THERE OF THE CATALAN LICENSE
ISSUED OF UC BERKELEY. AND I WAS
IN THE MIDDLE MIDDLE OF UC
BERKELEY SURROUNDED BY.
THOUSANDS OF STUDENTS THAT WERE
UNDER MY CARE THROUGH A
SCHOLARSHIP PROGRAM. AND RUBIO
STUDENTS I WAS ABLE TO REALLY
CITIES OF THE FUTURE. THEY
TAUGHT ME MORE ABOUT CRYPTO. AND
DIGITAL ASSETS. THEN I EVEN
LEARNED AS AN ATORNEY SO IT IS
THE FUTURE. AND WE NEED TO
EMBRACE THE FUTURE EVENTS COMING
BUT WHAT THE EXECUTIVE ORDER IS
SAYING AS WE ARE RACING
INNOVATION AND RACING IN THE
FUTURE. WE ALSO AT THE VERY
BEGINNING NEED TO WOW WERE
ENCOURAGING INNOVATION ENSURE
THAT THERE IS THE HIGHEST LEVEL
OF CONSUMER PROTECTION AS WELL.
AND THAT'S WHERE WE MADE
MISTAKES IN THE PAST WHERE WE'VE
EMBRACED INNOVATION. BUT WE
DON'T GET TO THE- CONSUMER
PROTECTION IN SO MANY YEARS
LATER WELL NOW WE'RE STARTING
WITH THE CONSUMER PROTECTION
FIRST RIGHT AT THE BEGINNING.
THE EXECUTIVE ORDER ALSO
EMPHASIZES ENCOURAGES US AS WE
SHOULD THE TAKE. AND CONSIDER.
AS WE DEVELOP THESE REGULATIONS
ONE IS EQUITY. AND THAT EQUITY
ISSUE IS SOMETHING THAT IS A
HIGH PRIORITY FOR ME. AND I
MENTION WHERE I GREW UP IN RURAL
POVERTY IN INNER CITY. AND
USUALLY IN THOSE COMMUNITIES.
AND IN COMMUNITIES OF COLOR. WE
NEW FINANCIAL PRODUCTS COME OUT
. WE'RE NOT INVITED A SEAT AT
THE TABLE LET ALONE TO EVEN KNOW
. WELL WE ARE BEING ENCOURAGED
TO THE EXECUTIVE ORDER TO MAKE
SURE. BUT THOSE COMMUNITIES IN
PARTICULAR HAVE A SEAT AND A
VOICE AT THE TABLE. AND LAST
AREA THAT A LOT OF TIMES IN THE
INNOVATION WE TEND TO FORGET
ABOUT. IS LOOKING AT THE IMPACT
. THE IMPACT OF CLIMATE CHANGE
AND ENSURING THAT WE ARE USING
THE BEST PRACTICES FOR
ENVIRONMENTAL PROTECTION. SO
BACK AND WE CAN LEAVE FOR FUTURE
GENERATIONS A PLANET THAT WE CAN
THEY CAN ENJOY AS MUCH AS WE
HAVE BEEN. SO WE WELCOME. THE
EXECUTIVE ORDER THAT STATES
THOSE PRINCIPLES AND REALIZES
THAT THERE IS POTENTIAL. IN THE
BLOCKCHAIN THERE IS POTENTIAL IN
CRYPTOCURRENCY THERE'S POTENTIAL
IN THE INNOVATION OF DIGITAL
ASSETS FOR THE GOOD. AND IT'S
OUR JOB WITH THE FBI THE HAVE
THAT POTENTIAL RIDE. BUT
ANYTHING IN REGARDS TO PREDATORY
LENDING OR TAKING ADVANTAGE OF
THE COMMUNITIES I JUST MENTIONED
. IT IS ALSO OUR MISSION IS TO
ENFORCE THE CONSUMER PROTECTION
LAW. THANK YOU COMMISSIONER AND
IT'S IN THAT SPIRIT I WAS HAPPY
TO SEE THAT D. F. P. EYES A
THIRTY WAS AFFIRMED IN THE
EXECUTIVE ORDER AND I DEFINITELY
WOULD LIKE TO URGE THE
ADMINISTRATION TO KEEP THE FBI
AS THE LEADING AGENCY- THAT SETS
THE REGULATORY APPROACH FOR THIS
EMERGING. INDUSTRY I THINK THAT
THAT'S VERY IMPORTANT AND IT'S
VERY IN LINE TO THE COMMENT THAT
YOU JUST SHARED WITH US. ANOTHER
FOLLOW UP QUESTION THAT I HAVE
EASE. NOTE TWO KEY I'M WONDERING
IF YOU OR- PERHAPS IT DEPUTY
COMMISSIONER AS- TATER- ED CAN
NAY COMMENT A LITTLE BIT ON THE
OR DESCRIBE. HOW INDUSTRY IS
WORKING WITH THE OFFICE OF
FINANCIAL TECHNOLOGY AND
INNOVATION TO ENGAGE EARLY- WITH
REGULATORS. WHEN NET NEW
PRODUCTS ARE BEING CREATED
INCLUDING OUR PRODUCTS RELATED
TO DIGITAL ASSETS. AND I'M GOING
TO LET- VISIONARY TAITRA RESPOND
IN DEBT TO THAT QUESTION BUT I
REALLY WANT TO EMPHASIZE. THAT
WE ARE GOING TO BE MEETING WITH
EVERYONE FROM THE VENTURE
CAPITALIST. WITH ZERO MANY OF
THE COMPANIES AND IF WE HAVE NOT
MET WITH YOU YEAH. IN THE AREA
OF BUSINESSES WE WILL GET THERE
EXECUTIVE ORDER JUST CAME OUT
AND WE ARE ALSO NEEDING. WITH
OTHER ENTITIES THAT ARE
INTERESTED ON THE BUSINESS SIDE
AND WHICH I HAVE REGULAR
MEETINGS WITH. AND THAT IS OUR
BANKS AND OUR CREDIT UNIONS
WHICH ALSO HAVE A STATE IN THIS
AREA. IN ADDITION TO OUR REGULAR
MEETINGS AND DIALOGUE WITH
COMMUNITY BASED ORGANIZATIONS
AND CONSUMER ADVOCATES. SO I
KNOW THERE MIGHT BE SOMEONE
SITTING THERE ARE IN THE PUBLIC
THE CIVIL THERE MET WITH ME AT.
WE'RE COMING TO YOU. AND I'D
LIKE TO TURN IT OVER TO TEACHER
. THANK YOU COMMISSIONER AND
THANK YOU FOR THE QUESTION TODAY
D. I AM. TODAY'S HERE REQUIRES A
WHOLE OF GOVERNMENT APPROACH AND
IS VERY MUCH FOCUSED ON ENSURING
THANKS FOR AND ENSURING
ALIGNMENT WITH THE FEDERAL
GOVERNMENT'S APPROACH IT IS AN
OPPORTUNITY FOR US TO PROVIDE
GREATER CLARITY TO THE CRYPTO
ASSET INDUSTRY AS WELL AS SECURE
BASIC CONSUMER PROTECTION. IT
OUTLINES AN INCLUSIVE PROCESS SO
WE THAT WE AT THE END- INSURING
THIS CONSISTENT BUSINESS
ENVIRONMENT SPECIFIC TO WHAT THE
OFFICE OF FINANCIAL TECHNOLOGY
INNOVATION DOES IN TERMS OF OUR
ENGAGEMENT WITH THE CRYPTO ASSET
INDUSTRY I'M PLEASED TO REPORT
THAT WE'VE HAD AND ANY NUMBER OF
MEETINGS. WITH INDUSTRY
STAKEHOLDERS THE WE HAVE AN OPEN
DOOR AS THE COMMISSIONER SAID IN
HER EARLIER REMARKS AND WE HAVE
HAD- TREMENDOUS NUMBER OF
MEETINGS WITH STAKEHOLDERS IN
THE CRYPTO ASSET INDUSTRY
RANGING FROM THE EARLIEST
EARLIEST STAGES TO ESTABLISH
LICENSEES WHO ARE LOOKING TO
EXPAND THEIR BUSINESS INTO THE
CRYPT ENTERED CRYPTO ASSET-
RELATED FINANCIAL PRODUCTS AND
SERVICES. OUR GOAL IN ALL OF
THESE MEETINGS IS TO LISTEN AND
UNDERSTAND WHAT THESE BUSINESSES
ARE TRYING TO ACCOMPLISH HEY TO
SHARE DEPARTMENT RESOURCES SO WE
ENSURE THAT THERE IS ABSOLUTE
CLARITY ABOUT EXPECTATIONS WE
ENCOURAGES BUSINESS BUSINESSES
TO CONTINUE TO COME IN EACH WITH
OUR OFFICE. AND WE ARE EAGER TO
SUPPORT RESPONSIBLE INNOVATION
THAT IS THE FUNDAMENTAL GOAL OF
THAT OS TI OFFICE IS TO SUPPORT
RESPONSIBLE INNOVATION AND KEEP
JOBS HERE AND HELP GROW THE.
INDUSTRY IN CALIFORNIA. GREAT
THANK YOU. I THINK THAT TO- GET
GIVEN THIS CONVERSATION AND I
KNOW THAT THE INTEREST THERE ARE
SEVERAL LEGISLATORS WHO HAVE HAD
AN INTEREST IN THIS PARTICULAR
TOPIC I DO HOPE THAT AT
THROUGHOUT THE PROCESS OF. WE
ARE ABLE TO WORK TOGETHER WITH
THE DEPARTMENT THE
ADMINISTRATION- AND THE
LEGISLATURE TO IDENTIFY ANY
WAYS. THAT WE CAN FURTHER
STRENGTHEN AND THE WORK THAT
WE'RE DOING IN THIS SPACE
PARTICULARLY IF THERE ARE GAPS
IN OUR EXISTING LAWS INCLUDING
SECURITY LAWS- THAT WOULD APPLY
TO DIGITAL ASSETS I THINK THAT
THAT WOULD BE IMPORTANT ANYTHING
THAT THE LEGISLATURE AND I SEE
NODS AT THE LEGISLATURE IS VERY
INTERESTED IN BEING A PARTNER.
IN IN THIS PARTICULAR SPACE. I'M
IN MY FINAL QUESTION IS JUST
RELATED TO YOU KNOW FOR THE
COMMISSIONER JUST OVER ARCHING
WE'VE TALKED QUITE A BIT ABOUT A
DIGITAL ASSETS BECAUSE IT'S A
VERY TIMELY AND IT YOU KNOW. A
CONVERSATION BUT AS AS YOU THINK
OF YOUR OVERALL- WORK THAT
YOU'VE DONE- IS SINCE YOU'VE
BEEN COMMISSIONER SINCE THE
DEPARTMENT HAS BEEN ESTABLISHED.
TODAY WHAT CAN YOU SAY ARE THE
THREE ISSUES. THAT WE ARE
FACING- THAT CONSUMERS ARE ARE
REALLY FACING- IN IN THE
FINANCIAL PROTECTIONS. LANDS OR
SPACE CAN YOU JUST COMMENT
GENERALLY AND I'M NOT LOOKING
FOR EXAMPLES OR ANYTHING LIKE
THAT BUT JUST YOU KNOW WHERE ARE
WE IN TERMS OF WHAT CONSUMERS
MOST CARE ABOUT. IN CALIFORNIA
AS IT RELATES TO FINANCIAL
PRODUCTS. AND I THINK IN
MENTIONING OUR PRIORITIES- IT
WILL ALSO BE SORT OF INDIATIVE
OF WHAT. CONSUMERS ARE CONCERNED
ABOUT. BECAUSE OUR PRIORITIES
ARE DEVELOPED FIRST AND FOREMOST
WITH THE CONSUMER IN MIND IN
WHERE WE HAVE RECEIVED OF THE
MOST. BACK. ONE IS- HELPING
CONSUMERS WITH COMPLAINTS.
DURING THIS PANDEMIC THERE HAS
BEEN AN INCREDIBLE AMOUNT OF
SCAMS AND PREDATORY LENDING. AND
IT'S REALLY VITAL THAT WE ARE
THERE FOR THEM. TO HELP THEM WIN
THE COMPLAINTS THIS IS WHY. OUR
COMPLAINT DIVISION ANSWERS THE
CALL WITHIN TWO MINUTES. THIS IS
WHY WE GET BACK TO OUR CONSUMERS
WITHIN SEVEN DAYS M. A. R.
COMPLAINING THE VISION IS
CENTERED ON COMPLAINT FOR
RESOLUTION WE WORK WITH HIM BUT
CONSUMERS TO HELP THEM RESOLVE
THE COMPLAINT. WE REACH OUT TO
THE COMPANIES. AND IF THE
COMPANIES OUR RESPONSE. THEN WE
TURN IT OVER TO ENFORCEMENT.
MORE THAN EVER CONSUMERS NEED
THAT ASSISTANCE AND A. NEED
THEIR ASSISTANCE IN PARTICULAR.
WITH THE FBI LICENSEES. THAT
WE'RE NOT LICENSE PRIOR TO
TWENTY TWENTY ONE THIS IS A
WHOLE NEW WORLD. I WOULD ALSO- I
HAVE TO SAY ABOUT THE EDUCATION
AND OUTREACH ARE CRUCIAL FOR THE
CONSUMERS NOT JUST IN TERMS OF
FINANCIAL EDUCATION NOT JUST IN
TERMS OF WHERE TO GO TO FILE A
COMPLAINT. BUT BECAUSE WE ARE IN
CHARGE OF A NUMBER OF KEY
INITIATIVES THAT ARE STILL NEAR
AND DEAR TO CONSUMERS ONE OF
THEM BEING. WHERE IS WE'RE
STARTING TO STUDENT BORROWERS
CAMPAIGN. AND WHICH WE ARE
LAUNCHING WE HOPE WITH THE
PASSAGE OF. THE BUDGET A TEN
MILLION DOLLAR MARKETING AND
COMMUNICATION CAMPAIGN. WHICH
ALSO INCLUDES. GRANTS TO
COMMUNITY BASED ORGANIZATIONS
THAT KNOW HOW TO GET TO REACH
THE CONSUMERS THE BETH AM
WORKING BESIDE AND ALONG WITH
THE COMMUNITY AND REACHING THE
CONSUMERS WETHERBY I'M FINANCIAL
EDUCATION. OR. HOW TO REPAY YOUR
STUDENT LOAN BEING EDUCATED
ABOUT. PUBLIC LOAN FORGIVENESS
IS. OUR STUDENTS ARE STUDENT
GRADUATES ARE OUR FUTURE. M. ARE
OF SIGNIFICANT PORTION OF OUR
CONSUMER POPULATION. SO OUR OUT
REACH. IS GOING TO BE VERY
SIGNIFICANT AS TO THAT. CONSUMER
PORTION OF OUR POPULATION AS IT
IS TO THE MILITARY SENIORS AND
IMMIGRANTS. AND I'M ALSO LIKE TO
MENTION. ANOTHER LEVEL OF
CONSUMER. VERY RARELY EVER GETS
MENTION. AND THAT IS ARE
UNDERBANKED POPULATIONS. MANY
WHO COME FROM RURAL COMMUNITIES
AND INNER CITY COMMUNITIES AND
COMMUNITIES OF COLOR. WE ARE
ALSO FOCUSED FDF PI. THOUGH IT
MAY NOT FALL DIRECTLY UNDER THE
C. F. P. L. AND HOW WE CAN HAVE
FINANCIAL SERVICES. DELIVERED TO
THOSE POPULATIONS WITHOUT HAVING
TO PAY A HIGH FEE. WE ARE SO
FOCUSED ON THAT AREA. THAT WE
ARE EVEN LOOKING BEYOND THE
UNITED STATES WE'RE LOOKING AT
WHAT THEY'RE DOING GLOBALLY IN
OTHER COUNTRIES. LIKE INDIA. IN
COUNTRIES THAT MAY HAVE BEEN
LABELED AS THIRD WORLD BUT I
SEEM TO HAVE ADDRESSED THE
PROBLEM OF DELIVERING ECONOMIC
BELIEVE FINANCIAL SERVICES TO
THOSE POPULATIONS. AND WE LOVE
THE EFFORTS OF THE UNITED
NATIONS FOUNDATION AND THE
ROCKEFELLER FOUNDATION AND
OTHERS THAT ARE CONCENTRATED ON
THAT AND WE'RE GONNA BE WORKING
RIGHT ALONGSIDE THEM. SO WHEN WE
SAY CONSUMERS. CONSUMERS AS A
WHOLE. IS HELPING THEM WITH
THEIR COMPLAINTS HELPING THEM TO
RESOLVE THEIR COMPLAINTS BEING
THERE FOR THEM TEACHING THEM
ABOUT THE NEW TECHNOLOGIES. THE
REST AS WELL AS THE BENEFITS.
ALSO GETTING INDEED TO THE
TARGETED POPULATIONS THERE ARE
THE MOST VULNERABLE AND
PROVIDING THEM SUPPORT. THANK
YOU COMMISSIONER AND I WILL SAY
THAT I VERY MUCH APPRECIATE YOU
KNOW HEARING YOUR RESPONSE TO
THAT BECAUSE I THINK SO OFTEN
THERE'S SO MUCH OF THE
DEPARTMENT CAN O AND- SEEN THAT
WITH THE NUMBER ONE THING THAT
WE ARE DOING IS HELPING EVERY
DAY CALIFORNIANS WHO DON'T KNOW
WHERE TO TURN AND WHO ARE
CALLING THE DEPARTMENT ASKING
FOR HELP TO NAVIGATE. US YOU
KNOW THAT THEIR CONNECTION WAIT
WITH OUR FINANCIAL COMPANIES IS
REALLY IMPORTANT TO HEAR AN A
DEFINITELY IN THE MIDDLE OF SO
MANY EXCITING PROJECTS AND
DIRECTIONS- I AM GLAD THAT WE
ARE NOT LOSING SITES THAT JUST
ANSWERING THE PHONE WHEN THE
CALIFORNIAN HAS A QUESTION. IS
AT THE CORE OF WHAT WE DO- AND
CERTAINLY I THINK EVEN SOME OF
OUR RESPECTIVE OFFICES- THROUGH-
THE PANDEMIC HAVE PICKED UP THE
PHONE AND HAVE HELPED OUR
CONSTITUENTS I WITH SOME OF THIS
BUT HAVING AN AGENCY THAT WE CAN
TURN TO- IT IS REALLY KEY AND
I'M GLAD THAT WE'RE ALSO NOT
FORGETTING THE MANY. DIFFERENT
TYPES OF GROUPS THAT MAKE UP
CONSUMERS INCLUDING STUDENTS-
IMMIGRANTS AND THE- UNDERBANKED
SO I LOOK FORWARD TO SEEING HOW
WE DO MORE FOR ALL OF OUR
CONSTITUENTS- AND CERTAINLY SOME
OF. THE ONES THAT- HAVE HAD SOME
OF THE HARDER CHALLENGING IN
ACCESSING. THE FINANCIAL
SERVICES THAT THAT COULD BE VERY
HELPFUL FOR THEM. I KNOW THAT
YOU WORKED REALLY HARD- AS WELL
BECAUSE I'VE ALSO HEARD THAT.
ONE THING THAT IS THAT THAT'S
VERY. INTERESTING TO ME IS THE
FACT THAT YOUR DEPARTMENT HAS
ENGAGE WITH STAKEHOLDERS IN A
MORE REGULAR WAY THROUGH
OUTREACH AND THE NUMBER OF
SURVEYS THAT I'VE SEEN IT COME
OUT AND FROM YOUR DEPARTMENT
ASKING CONSTITUENTS IN
CALIFORNIA'S TO GIVE FEEDBACK-
IS ALSO A THINK REALLY
IMPORTANT. BECAUSE IT'S A IT'S A
PIECE THAT WE DON'T OFTEN DO
THAT AGENCIES AND DEPARTMENTS IN
THE STATE DON'T OFTEN DO BUT
THIS OPEN ENDED. GIVE US YOUR
FEEDBACK WHAT ARE THE THINGS
THAT ARE- OF CONCERN TO YOU I
THINK ARE IMPORTANT AND I KNOW
THAT I'VE HAD CONSTITUENTS
COMMENT THAT. THEY GOT A SURVEY
AND I THOUGHT THAT THAT WAS
REALLY INTERESTING SO- I WANT TO
THANK YOU FOR THAT. HEY WE DO
HAVE A COUPLE MEMBERS THAT HAVE
JOINED US ASSEMBLYMEMBER
BARRICADE HANNAH SENATOR CHOI
BOGUE SO I'D LIKE TO GIVE YOU
THE OPPORTUNITY TO ASK ANY
QUESTIONS- IF THERE ARE ANY
QUESTIONS THAT YOU ALL HAVE. SO
THEME NO ADDITIONAL OF QUESTIONS
FROM MEMBERS WE WILL NOW TURN.
TO THE PUBLIC AND- WE WILL MOVE
TO ANYONE WHO WOULD LIKE TO
PROVIDE PUBLIC COMMENT. AS A
REMINDER WE'RE ASKING THE PUBLIC
TO COMMENT TO BE LIMITED TO A
MINUTE. A PER PERSON AND IF YOU
WOULD LIKE TO PROVIDE TESTIMONY
OVER THE PHONE. TODAY'S
PARTICIPANT NUMBER IS
844-291-4185 AND THE ACCESS CODE
IS FOUR SIX SIX THREE NINE SIX
EIGHT. YOU CAN ALSO FIND THIS
NUMBER ON THE COMMITTEE'S
WEBSITE SO WE'RE GOING TO BEGIN
WITH ANY WITNESSES HERE IN THE
GALLERY. SEEN NO WITNESSES IN
THE GALLERY IN- WE WILL MOVE IT
TO ANYONE. WHO WOULD LIKE TO
PROVIDE PUBLIC COMMENT VIA
TELECONFERENCE ORVIS MODERATOR
IF YOU WOULD IT PLEASE PROMPTLY
INDIVIDUALS WAITING TO PROVIDE
PUBLIC COMMENT WE WILL BEGIN.
CERTAINLY THANK YOU AND LATER
JUMP YOU WOULD LIKE TO MAKE A
COMMENT PLEASE PRESS ONE ZERO AT
THIS TIME. AGAIN IT'S. ONE ZERO.
AND GIVE US JUST A MOMENT HERE
WORKING GO TO LINE UP TWENTY ONE
PLEASE GO AHEAD. GOOD MORNING
AND REQUESTS ARE FROM THE CENTER
FOR RESPONSIBLE LENDING. ZERO
THANK THE ASSEMBLY AND SENATE
BANKING COMMITTEE AND THEIR
STAFF FOR THIS HEARING. IN
COMMISSIONER HEWLETT AND DAPI
STAFF FOR THEIR TESTIMONY TODAY
. WE EMERGE FROM PANDEMIC AND
RELATED GOVERNMENT BENEFITS AND
LOW INCOME CALIFORNIANS WILL
INCREASINGLY BE TARGETED BY
PURVEYORS OF HIGH COST DEBT.
THANK THE LEADERSHIP OF THESE
COMMITTEES AND THAT THE FBI
CALIFORNIA'S INTEREST RATE CAPS
FOR INSTALLMENT LOANS PROTECT
MANY VULNERABLE CONSUMERS FROM
PREDATORY LENDERS. UNFORTUNATELY
IT PROTECTIONS UNDER ATTACK
RECENTLY WE SAW ONE VENDOR TRIED
TO EVADE THE RATE CAPS I
PARTNERING WITH AND HOW TO STATE
BANK AS WELL AS AN ATTEMPT TO
EXPLOIT A LOOPHOLE IN THE RATE
CAPS THROUGH PROPOSED
LEGISLATION THAT MAP TO BE A
PILOT PROGRAM- ZERO CORP THE FBI
PROVIDING INVASION. OF
CALIFORNIA'S RATE CAPS IN THE
ASSEMBLY BANKING COMMITTEE FOR
SEEING THROUGH AN ATTEMPT HELLO
ADDITIONAL FEES ON VULNERABLE
PILOT PROGRAM PARKS. THE
LEGISLATURE IN THE FBI MUST
REMAIN AGAINST ATTEMPTS TO
UNDERMINE THE STATE'S RATE CAP
PROTECTION. SHOULD NOT BE MISLED
BY FALSE ARGUMENT ABOUT ACCESS
TO CREDIT. CALIFORNIANS NEED
AFFORDABLE. HI COMPLIMENTS.
THANK YOU. THANK YOU X. WE CAN
GO. WITH THE MEXICAN TWENTY
THREE PLEASE GO AHEAD. GOOD
MORNING CHAIRWOMAN LEE MON-
CHAIRMAN GRACE AND MEMBERS OF
THE RESPECTIVE COMMITTEES AND-
TIA TI MY NAME IS ROBERT
CARRILLO I'M THE EXECUTIVE
DIRECTOR OF THE CONSUMER
FEDERATION OF CALIFORNIA THANK
YOU VERY MUCH FOR HAVING THIS
HEARING IS VERY ENCOURAGED BY
SOME OF THE THINGS THAT THE
COMMISSIONER AND HER TOP. TEAM
MEMBERS SAID I WOULD ECHO YOUR
COMMENTS MADAM CHAIR ABOUT THE
ACCESSIBILITY WE HAVE DEFINITELY
NOTICED THAT THERE HAVE BEEN
MORE ACCEPTABILITY NOT TO THE
DEPARTMENT AND WE THINK THEY'RE
OFF TO A PRETTY GOOD START- IN
THAT MISSION AND JOURNEY ARE ON
THAT AREA CRYPTO I JUST WOULD
LIKE TO READ. A BRIEF STATEMENT
OUR OFFICIAL STATEMENT FROM THE
CONSUMER FEDERATION CALIFORNIA
ABOUT THE GOVERNOR'S EXECUTIVE
ORDER WHICH AGAIN JUST CAME OUT
LITERALLY A LESS THAN TWO HOURS
AGO. QUOTE A STRONG REGULATORY
AND ENFORCEMENT FRAMEWORK THAT
PROTECT CONSUMERS FIRST IS
CRITICALLY IMPORTANT IN THE
CRYPTO SPACE AND WE ARE HOPEFUL
THAT THE GOVERNOR'S EXECUTIVE
ORDER MAY LEAD TO THAT. WE ARE
SOMEWHAT CONCERNED THAT KOBE IS
APPEARS TO BE IN CHARGE OF MUCH
OF THE PROCESS AND CONSUMER
ORGANIZATIONS WILL REMAIN
VIGILANT THAT PROTECTING
CONSUMERS NOT TAKE A BACKSEAT TO
PROMOTING AN INDUSTRY SPENDING
BILLIONS TO PROMOTE ITSELF. I
WOULD ALSO NOTE THAT I
APPRECIATE THE COMMISSION
COMMENT THAT IT'S VERY CLEAR
THAT THE C. F. P. L. GET THE
DEPARTMENT THE AUTHORITY TO ACT
IN THE AREA AFTER ALL FINANCIAL
PRODUCTS AND SERVICES WE LOOK
FORWARD TO THE CONTINUED
PARTNERSHIP WITH THE DEPARTMENT
AND OTHER STAKEHOLDERS. AND
MIGHT EVEN SUGGEST THAT IN SOME
OF THESE MEETINGS WITH
CRYPTOCURRENCY INDUSTRY PLAYER
THAT SOME CONSUMER ADVOCATES BE
INCLUDED IN THOSE MEETINGS I
THINK THAT WOULD BE BENEFICIAL.
TO ALL PARTIES THANK YOU VERY
MUCH. AND GET IT ONE ZERO TWO-
ARE. CALM COULD NOT TWENTY FIVE.
PLEASE GO AHEAD. GOOD MORNING
THAT SHARES THIS IS TED MERMAN
FROM THE CALIFORNIA LOW INCOME
CONSUMER COALITION- WE- WERE
AMONG THOSE WORKING VERY HARD-
TO- BRING ABOUT THAT THE NEW
DEPARTMENT AND WE ARE HEARTENED
BY THE DEPARTMENT'S WORK SO FAR
- IN THE COMING YEAR WE LOOK
FORWARD TO EXPANDED EFFORTS-
WITH INCREASED ENFORCEMENT
ACTIVITY IN PARTICULAR. AND
BROADENED WORK TO SUPPORT AND
PROTECT CONSUMERS IN ALL
COMMUNITIES IN OUR STATE THANK
YOU. AND IN DOWN FOR LUNCH AT
THIS TIME I CAN REMIND EVERYBODY
IT'S. ONE ZERO. NO COMMENTS
THANK YOU. THANK YOU MODERATOR
MEMBERS ANY ADDITIONAL QUESTIONS
OR COMMENTS THANK YOU SO MEMBER
FONG FOR JOINING US. SCENE THEN-
CHAIR GRAYSON ANY CLOSING
COMMENTS. THANK YOU SO MUCH-
CHIRLA MON AND THANK YOU FOR
PRESIDING OVER THIS OVERSIGHT
HEARING I REALLY LOOK FORWARD TO
THE LEGISLATURE'S PARTNERSHIP
WITH THE FBI AND- MAKING SURE WE
KEEP CONSUMERS SAFE IN
CALIFORNIA. WHILE PROMOTING
INNOVATION THANK YOU. THANK YOU
TERRY GRAYSON AND I WANT TO
THANK ALL INDIVIDUALS WHO CALLED
IN TO PARTICIPATE IN PUBLIC
TESTIMONY TODAY AND IF YOU WERE
NOT ABLE TO TESTIFY VIA
TELECONFERENCE A SERVICE PLEASE
SUBMIT YOUR COMMENTS TO THE
ASSEMBLY BANKING COMMITTEE. OR
THE SENATE BANKING COMMITTEE
YOUR COMMENTS AND SUGGESTIONS
ARE IMPORTANT TO US AND WE WANT
TO INCLUDE YOUR TESTIMONY IN
THIS SPECIAL HEARING RECORDS WE
APPRECIATE YOUR PARTICIPATION
AND I WILL ECHO AT YOUR GRAYSON
COMMENTS AND WANTING THE
LEGISLATURE TO BE A PARTNER. UP
WITH THE ADMINISTRATION AND DAPI
AND US CERTAINLY AS WE SEE A NEW
DIRECTION- ERROR ADDITIONAL
DIRECTIONS RUDY OF P. I WE DO
HOPE THAT D. F. P. I WILL BE
LEADING AGENCIES- IN THIS NEW.
DIRECTION AND PARTICULARLY IN
THE EXECUTIVE ORDER THAT'S COME
OUT TODAY- AND WITH THAT WE
WILL. CAN TODAY'S. AND THE
SENATE COMMITTEE ON BANKING AND
FINANCIAL INSTITUTIONS AND
ASSEMBLY COMMITTEE ON BANKING
AND FINANCE HAS ADJOURNED.