THE SENATE COMMITTEE ON
GOVERNANCE AND FINANCE WILL COME
TO ORDER. COULDN'T DO IT. GOOD
MORNING, EVERYONE. AS WE
CONTINUE TO TAKE PRECAUTIONS TO
MANAGE ONGOING COVID 19 RISKS.
THE SENATE CONTINUES TO WELCOME
THE PUBLIC AND HAS PROVIDED
ACCESS TO BOTH IN PERSON AND
TELECONFERENCE PARTICIPATION FOR
PUBLIC COMMENT. FOR INDIVIDUALS
WISHING TO PROVIDE PUBLIC
COMMENTS VIA THE TELECONFERENCE
SERVICE 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
5603 TO 5. I WILL MAINTAIN
DECORUM DURING THE HEARING, AS
IS CUSTOMARY IN ANY INDIVIDUAL
WHO IS DISRUPTIVE MAY BE REMOVED
FROM THE REMOTE MEETING SERVICE
OR HAVE THEIR CONNECTION MUTED.
WE'VE NEVER HAD TO DO THAT, UM,
IN THIS COMMITTEE, SO I DON'T
EXPECT TO HAVE TO DO IT TODAY.
BUT WARNING TO THE WISE WE ARE
HOLDING OUR COMMITTEE HEARINGS
HERE IN ROOM 1 12 IN THE STATE
CAPITAL, AND I ASK ALL MEMBERS
OF THE COMMITTEE TO BE PRESENT
SO WE CAN ESTABLISH OUR QUORUM
AND BEGIN OUR HEARING. WE HAVE
ONE ITEM ON THE AGENDA. TODAY S
B 5 18 BY SENATOR LAIRD, WHICH
THE COMMITTEE IS CONSIDERING
PURSUANT TO SENATE RULE. 29.10
B. WE WOULD LIKE TO WELCOME BACK
SENATOR MCGUIRE TO THE COMMITTEE
WHO THE PRO TEM APPOINTED AS A
SUBSTITUTE FOR SENATOR DURAZO
TODAY BECAUSE SHE'S NOT ABLE TO
ATTEND. WELCOME TO SENATOR
MCGUIRE. WE'RE ALWAYS HAPPY TO
SEE YOU BACK AGAIN. BEFORE WE
HEAR PRESENTATION ON THE BILLS.
WE NEED TO ESTABLISH A QUORUM.
CONSULTANT. PLEASE CALL THE
ROLL. HERE.
WE HAVE A QUORUM. THE CONSULTANT
NOTES THAT AQUARIUM HAS BEEN
ESTABLISHED, SO WE'RE GOING TO
HEAR FROM OUR FIRST AND ONLY
AUTHOR. WELCOME SENATOR LARD.
YOU MAY PRESENT YOUR BILL. SB 5
18. THANK YOU, MADAM CHAIR AND
I'M VERY REASSURED THAT YOU'LL
REMOVED ANYBODY THAT'S
DISRUPTING TO HEARING AND I HOPE
NOT TO BE THAT PERSON. UH SENATE
BILL 5 18 WILL ALLOW THE STATE
BOARD OF EQUALIZATION TO
CONTINUE TO RELEASE PIVOTAL DATA
FOR THE WINE INDUSTRY, AS THEY
HAVE SINCE THE 19 THIRTIES. UM
THE BOARD OF EQUALIZATION. HAD
SOME NERVOUSNESS ABOUT THIS
PROGRAM AND DECIDED TO PAUSE IT
UNTIL THEY HAD STATUTORY
AUTHORITY EVEN THOUGH IT HAD
BEEN GOING SINCE THE 19
THIRTIES. SO THIS BILL PROVIDES
THE BOARD OF EQUALIZATION WITH
THE STATUTORY AUTHORITY TO
PROVIDE THIS DATA. WHICH HAS
BEEN CRITICAL TO THE WINE
INDUSTRY AND THEIR UNDERSTANDING
AND ASSESSMENT OF LONG TERM
TRENDS IN PLANNING FOR THE
FUTURE, SUCH AS INFORMING GRAPE
VARIETAL PLANNING DECISIONS BY
REGION, WHICH HAS SIGNIFICANT
IMPACTS ON WINE, GRAPE AND WINE
MARKETS FOR DECADES. IN OCTOBER
OF LAST YEAR, THE BOARD OF
EQUALIZATION VOTED TO SUPPORT
LEGISLATION AND CONCEPT THAT
WOULD PROVIDE THEM WITH THIS
STATUTORY AUTHORITY. WE HAVE
WORKED WITH STAKEHOLDERS,
INCLUDING THE CALIFORNIA
DEPARTMENT OF TAX AND FEE
ADMINISTRATION AND THE BOARD OF
EQUALIZATION TO ADDRESS PRIVACY
CONCERNS AND SURE THAT THEY'RE
ABLE TO ADMINISTER THE BILL.
THERE'S BEEN ONE ISSUE THAT'S
BEEN RAISED AND I THOUGHT I
WOULD TALK ABOUT IT HERE AND IT
IS THE ISSUE. ABOUT WHETHER
PEOPLE SHOULD OPT IN OR OPT OUT
OF THIS PROGRAM. AND NORMALLY,
IF IT IS A NEW PROGRAM, IT IS
REALLY APPROPRIATE TO TALK ABOUT
WHETHER PEOPLE SHOULD OPT IN AND
GET IT OFF THE GROUND. THIS HAS
BEEN GOING FOR 80 YEARS THERE
WAS NOT REALLY SUBSTANTIAL
COMPLAINTS, AND IN FACT, IT WAS
THE INDUSTRY THAT ASKED FOR THE
STATUTORY AUTHORITY. TO DO IT,
AND SO BECAUSE IT'S BEEN GOING
FOR 80 YEARS WITH SUPPORT FROM
THE STAKEHOLDERS AND, UH THE
INDUSTRY SUPPORTING THIS BILL
AND ASKING FOR IT AS WELL. IN
THAT CASE, I THINK IT
DIFFERENTIATES ITSELF FROM A NEW
PROGRAM AND MAKES MAKES AN OPT
IN AN EXTRA STRETCH FOR
SOMETHING THAT'S BEEN GOING FOR
80 YEARS. THIS BILL HAS HAD NO
NO VOTES PASSED THE ASSEMBLY 75
TO 0. IT RECEIVED BIPARTISAN
SUPPORT. IT HAS NO REGISTERED
OPPOSITION. WITH ME TO ANSWER
TECHNICAL QUESTIONS IS TIM
SMELTZER FROM THE VICE PRESIDENT
OF CALIFORNIA EXCUSE ME STATE
RELATIONS AT THE WINE INSTITUTE.
AND I THINK. THERE'S ALSO JOHN
MOREAU MARCO, MANAGING PARTNER
WITH HAMBURG AND FREDRICKSON,
AND THAT'S TO ANSWER QUESTIONS.
SO WITH THAT I APPRECIATE THE
TIME AND HAVING A HEARING FOR
ONE BILL. AND I RESPECTFULLY ASK
FOR AN IPHONE. WELCOME, MR
SCHMELZER. THANK YOU SO MUCH, UM. THIS IS GOOD. IT IS SO MADAM
CHAIR AND MEMBERS. THANKS FOR
YOUR ATTENTION TO THIS MATTER.
THIS IS A BIT OF AN ESOTERIC
PIECE OF LEGISLATION ADMITTEDLY.
AH THIS HAS TO DO WITH DATA THAT
HAS FORMED THE BACKBONE ECONOMIC
ANALYSIS THAT'S GUIDED THE WINE
INDUSTRY FROM ITS INFANCY TO THE
GREAT INDUSTRY THAT IT IS TODAY.
AND IT NOT ONLY HELPS THE
WINEMAKERS AND THEIR THEIR
DECISION MAKING WITH REGARD TO
VARIETALS TO PLANT HOW TO MARKET
THEIR PRODUCTS, AND SO ON. BUT
THIS IS ALSO FRANKLY, IT'S
USEFUL TO YOU. YOU WANT TO KNOW
WHAT'S GOING ON IN THE WINE
INDUSTRY. THIS DATA IS WHAT WE
USE TO BE ABLE TO BE RESPONSIVE
TO PUBLIC POLICY REQUESTS FROM
FROM FOLKS LIKE YOURSELVES. THIS
DATA ALSO HELPS US INFORM MAKE
INFORMED REQUESTS FOR GRANTS
FROM, UH, UNITED STATES
DEPARTMENT OF FOOD AND
AGRICULTURE. IT'S BEEN REALLY
HUGELY IMPORTANT TO US AND
REALLY THE ONE THING THAT'S
GOING TO BE DIFFERENT ABOUT THIS
GOING FORWARD THAN THAN
HISTORICAL PRACTICES IS THAT
WE'RE ACKNOWLEDGING THE ABILITY
OF WINE GROWERS TO CHOOSE TO
KEEP THEIR INFORMATION PRIVATE,
FRANKLY, FOR THESE 80 PREVIOUS
YEARS THAT THAT WE MENTIONED THE
STATUS WAS RELEASED WITH THE
ONLY REDACTED AMOUNT BEING IF IT
WAS A INDIVIDUAL PERSON, BUT THE
COMPANY NAMES HAVE BEEN BEING
RELEASED FOR ALL THIS TIME. NOT
ONLY WAS THERE NO SUBSTANTIAL
COMPLAINTS DURING ALL THESE
DECADES, THERE WERE ZERO
COMPLAINTS OVER ALL THESE WE
HAVE WORKED TIRELESSLY TO LOOK
UNDER EVERY ROCK TO FIND IF
THERE'S ANY OPPOSITION OUT THERE
AS WINE INSTITUTE WE REPRESENT
OVER 1000 WINERIES UP AND DOWN
THE STATE OF EVERY DIFFERENT
SIZE. WE'VE WORKED WITH EVERY
REGIONAL WINE ASSOCIATION IN THE
STATE TO LOOK FOR ANY CONCERNS,
AND AS YOU SEE WE HAVE QUITE A
NUMBER OF THEM SIGNED ON AND
SUPPORT. BECAUSE OF ALL THAT I
ENCOURAGE. AND I VOTE TODAY.
THANK YOU. THANK YOU VERY MUCH.
MOVING ON TO THE OTHER WITNESS
AND SUPPORT JOHN MORE REMOTE,
MORE AND MORE, MARCO. UM YOU ARE
ON THE PHONE, AND I BELIEVE YOUR
LINE MAY BE OPEN. YES I AM ON
THE PHONE. AND CAN YOU HEAR HIM?
MADAM CHAIRMAN? YES, WE CAN HEAR
YOU. WELL. OKAY. THANK YOU. UM.
ARE YOU BEING BUSINESS REALLY?
CAN'T ADD THAT MUCH. ALL I CAN
SAY IS THAT YOU KNOW, THE
INDUSTRY HAS GROWN FROM ALMOST
NOTHING IN THE 19 THIRTIES TO
SUBSTANTIAL INDUSTRY IN
CALIFORNIA AND THE DOMINANT WINE
INDUSTRY IN THE US A SIGNIFICANT
VALUE OF HAVING THE DATA THAT
COMES FROM THE WINE GROWER
RETURNS IS THAT WE'VE BEEN ABLE
TO PROVIDE INDUSTRY INFORMATION
AS WELL AS, UM LEGISLATORS BOTH
STATEWIDE AND. NATIONALLY
INFORMATION ON THE INDUSTRY IS
REQUESTED. AND WE CAN FIGHT
OBTAINING THIS DATA WE CAN LOOK
AT, UM WHAT'S HAPPENING IN THE
STREET BY FIVES OF WINERY BY
LOCATION OF WINERY, A NUMBER OF
PERMUTATIONS THAT WERE ASKED
ABOUT AND WE CAN'T EVEN TELL YOU
ALL THE DIFFERENT PERMUTATIONS.
WE'VE BEEN ASKED, BUT IT'S
INVALUABLE THE INDUSTRY. WE'D
LIKE TO CONTINUE TO RECEIVE IT.
AND, AS TIM SAID, WE HAVE HAD NO
COMPLAINTS ABOUT THIS
INFORMATION BEING RELEASED, AND
THAT'S WHY YOU KNOW, WE THINK
THE OPT OUT IS A GOOD WAY. IF
THERE EVER EVER IS ANYBODY WHO
DOES NOT WANT THEIR INFORMATION
WERE RELEASED, BUT WE'VE NEVER
FOUND THAT TO BE THE CASE. AND
WITHOUT A THANK YOU. VERY MUCH
FOR YOUR TESTIMONY HERE TODAY.
APPRECIATE IT. UM IN THE PAST,
WE'VE LIMITED THE WITNESS
TESTIMONY BECAUSE SOME OF THE
HEARINGS WERE FAIRLY LENGTHY. UM
AND SO I DON'T THINK WE'RE GOING
TO NEED TO DO THAT TODAY. WHAT
WE'RE GOING TO DO IS SEE IF
THERE'S ANYONE HERE IN THE ROOM
ROOM 1 12 THAT WOULD LIKE TO
TESTIFY. IN SUPPORT OF THE BILL.
LET ME JUST SAY THAT THERE WERE
HAVE NO LISTED WITNESS IN
OPPOSITION, BUT WE WILL GET TO
THE OPPOSITION ON THE PHONE, BUT
WE'RE GOING TO START WITH HERE
IN THE ROOM AND SEEING THEN
WE'LL MOVE ON MODERATOR IF YOU
COULD QUEUE UP ANY INDIVIDUAL
THAT WOULD LIKE TO SUPPORT TO
TESTIFY IN SUPPORT OF THE BILL.
NOW IS THE TIME. FIND SUPPORT
ONE THAN ZERO ON YOUR TOUCHED ON
PHONE. AND 18. T SPECIALISTS
WILL PROVIDE YOU WITH YOUR LINE
NUMBER AND WE'LL CALL UPON YOU
WHEN YOUR LINE IS READY. MADAM
CHAIRMAN. WE HAVE NO IN QUEUING
UP AT THIS TIME. VERY GOOD. NOW
WE'LL MOVE ON TO OPPOSITION. IS
THERE ANYONE IN THE ROOM THAT
WOULD LIKE TO TESTIFY IN
OPPOSITION TO THE BILL? SAYING
NONE. MR MARTIN AND MR MODERATOR
WILL MOVE ON TO THE
TELECONFERENCE LINE IF YOU COULD
QUEUE UP ANY INDIVIDUALS THAT
WOULD LIKE TO TESTIFY IN
OPPOSITION. TO TESTIFY. AN
OPPOSITION PRESS 10 AT THIS
TIME. ONCE AGAIN, MADAM CHAIR.
THERE ARE NO LINES GOING UP.
THANK YOU. THANK YOU VERY MUCH.
YOUR JOB HERE TODAY PROBABLY IS
GOING TO BE VERY BRIEF. MR
MODERATED. WANT TO THANK YOU IN
ADVANCE FOR DOING THAT WORK,
BRING THE MATTER BACK TO THE
COMMITTEE FOR QUESTIONS OR
CONCERNS ANYTHING. YES SIR.
SENATOR NIELSEN, MADAM PRESIDENT
BEING VERY, VERY FAMILIAR WITH
THIS INDUSTRY. IT'S A LITTLE BIT
UNIQUE IN ONE WAY IN TERMS OF
THE INFORMATION. THE WINE
INDUSTRY IS NOT A MONOLITHIC
BODY LIKE COTTON. WAIT. ALFALFA.
THE UNIQUENESS OF THE GRAPE. AND
HOW THAT GRAPE HAS ADAPTED OVER
EONS. TO THE MICRO CLIMATES.
SOILS, ETCETERA. WE HAVE THESE.
WORDS CALLED APPALACHIANS, AND
THAT'S A PARTICULAR DEAD
DESIGNATION OF FORMER ONE
LEGALLY FOUNDATION. AND IT'S
BEEN VERY INSTRUCTIVE AND
HELPFUL IN THE ORDERLY MARKETING
OF THE WINES. AND INDEED HELPING
CALIFORNIA WINES PREMIUM PREMIUM
WINES IN THE WORLD. AND THAT'S
WHY I THINK THAT THIS IS A BIT
OF AN IMPORTANT THING IN TERMS
OF THE INFORMATION AVAILABLE TO
THE INDUSTRY TO THE INDIVIDUAL
GROWERS AND THE WINE MAKERS,
STIFF DISCERN WHAT? WHAT THEY
NEED TO BE GROWING AND PLANNING
AND THESE GRAPES, YOU KNOW THAT
YOU DIDN'T KNOW. POP THEM INTO
THE GROUND AND THEY GROW. YOU
HAVE YEARS. TO GET THAT THAT
VINEYARD INTO BEFORE PRODUCTION
. SO IT DID. IT WOULD BE A VERY
HELPFUL STEP, AND IT'S A
INADVERTENCE. SEE, THAT CAME BY
A DECISION OF A STATE AGENCY AND. EVERYTHING WORKED FINE FOR A
WHILE. AND THEN THIS DECISION
KIND OF CLOUDED THE WATERS. NOW
WE NEED TO CLARIFY IT. I MOVED
THE BILL. THERE IS EMOTION. UM
SAYING NO, NO COMMENTS THAT
SENATOR YEAH, UM. LET ME LET ME
JUST SAY I APPRECIATE YOU BEING
HERE TODAY. UH MR SCHMELZER. I
APPRECIATE YOUR DETAIL IN
REGARDS TO THE OUTREACH THAT
YOU'VE DONE IN REGARDS THIS.
I'LL TELL YOU, UM, I CAME INTO
THE HEARING THINKING I WAS JUST
GOING TO ABSTAIN FROM IT. THE
REASON BEING THAT THAT I AM VERY
CONCERNED WITH WITH DISCLOSING
TEXT INFORMATION. FOR ANY
INDUSTRY. AND FOR ME, THIS IS A
SLIPPERY SLOPE TO ASSUME THAT
PEOPLE WOULD BE OKAY WITH THEIR
BUSINESS TAX INFORMATION GOING
OUT TO THE TO ANYONE AND THEN
BEING UTILIZED IT. BUT TO THE
EXTENT THAT THIS HAS BEEN 80
YEARS, AND IN THE INTERIM,
YOU'VE GONE OUT TO THE INDUSTRY
AND ASKED IF THERE'S ANY
CONCERNS, THE WHOLE OPT IN. OPT
OUT FOR ME WAS IF YOU IF YOU ASK
PEOPLE TO OPT IN, THAT'S ONE
THING, BUT TO ASK THEM TO OPT
OUT. MOST PEOPLE DON'T KNOW.
THAT THEY HAVE THAT OPTION. UM
BUT WINE INDUSTRY IS FAIRLY
SOPHISTICATED. IF YOU'VE MADE
THE CONTACTS, UM, TO THE OTHER,
UH WINE. ORGANIZATIONS AND
EVERYBODY IS IN AGREEMENT. THEN
I DON'T HAVE A PROBLEM WITH THAT
. UM, YOU'VE CHANGED MY MIND, I
GUESS IS THE POINT. AND I
APPRECIATE YOU DOING THAT
OUTREACH BECAUSE QUITE FRANKLY,
I STILL AM A LITTLE BIT, UH,
CONCERNED ABOUT IT, BECAUSE, AS
YOU KNOW, IT'S THE OLDER CAMEL'S
NOSE UNDER THE TENT. ONCE YOU
START DOING IT, THEN IT BECOMES
A UM, A TRADE THAT ARE, IT
BECOMES A PRECEDENT THAT GETS
UTILIZED IN OTHER INDUSTRIES. SO
THIS IS SOMEWHAT DIFFERENT TO
THE EXTENT YOU'VE BEEN PROVIDING
THE INFORMATION FOR 80 YEARS,
AND THERE HASN'T BEEN A PROBLEM
, NO COMPLAINTS AND, UM, NO
OBJECTIONS FROM THE DIFFERENT
ORGANIZATIONS. I'M PREPARED TO
SUPPORT THE BILL HERE TODAY, SO
THERE IS EMOTION. UM SENATOR
LAIRD, I'LL ALLOW YOU TO
CONCLUDE I WOULD JUST SAY
BRIEFLY THAT IRONICALLY,
YESTERDAY I PRESENTED A BILL IN
THE NATURAL RESOURCES COMMITTEE
, WHERE THE ANALYSIS SAID THIS
IS A CAMEL'S NOSE UNDER THE TENT
. THAT SORT OF ACTUALLY SAID
INTERESTING AND I'VE LINED OUT
THE REASONS WHY IT WAS
DEFENSIBLE AS AN EXCEPTION. IT
WAS AN ADVANCE FOR THE PRO LEVY.
AND AS A RESULT ACCEPTED IT, AND
I THINK YOU JUST OUTLINED YOUR
DEFENSE AGAINST ANY CAMEL THAT
STICKS ITS NOSE UNDER THE TENT.
REALLY YEAH, REALLY APPRECIATE
THAT. AND I RESPECTFULLY ASK FOR
THANK YOU SO MUCH. WELL, THERE
IS EMOTION. UM MR. CONSULTANT.
PLEASE CALL THE ROLL. BYE.
MCGUIRE. THE BILL IS OUT FOR 20.
THE AMENDMENTS ARE CONCURRED AND
DO WE KEEP, DO WE.
CALLED. WILL MATTER. JUST THE
MEASURE IS ON CALL. I DON'T KNOW
HOW THAT'S WHAT YOU GUYS DO THAT
RIGHT? YEAH.
SENATE GOVERNMENT GOVERNANCE AND
FINANCE WILL COME BACK TO ORDER
AGAIN AND WILL, UM, CALL THE
ROLES.
I THANK YOU SO MUCH, MADAM
CHAIR. THAT CONCLUDES OUR
HEARING TODAY THAT BILL IS OUT 5
TO 0. THE SENATE GOVERNANCE AND
FINANCE COMMITTEE IS ADJOURNED.