THE SENATE COMMITTEE ON BANKING
AND FINANCIAL INSTITUTIONS WILL
COME TO ORDER GOOD AFTERNOON THE
SENATE CONTINUES TO WELCOME THE
PUBLIC IN PERSON AND VIA THE TO
THE PUBLIC IN PERSON AND VIA
TELECONFERENCE ARVEST FOR
INDIVIDUALS WISHING TO PROVIDE
PUBLIC COMMENT TODAY'S
PARTICIPANT NUMBER IS.
877-226-8216 AND THE ACCESS CODE
IS. SIX TWO ONE SEVEN ONE SIX
ONE WE ARE HOLDING OUR COMMITTEE
HEARINGS IN THE- STREET BUILDING
I ASK ALL MEMBERS OF THE
COMMITTEE TO BE PRESENT IN ROOM
TWENTY ONE HUNDRED SO WE CAN
ESTABLISH OUR QUORUM AND BEGIN
THE HEARING. WE HAVE FOUR BILLS
ON TODAY'S AGENDA BEFORE- WE.
ONE TWO THREE FOUR WE DON'T YET
HAVE QUORUM- SO WE WILL GO AHEAD
AND HOLD OFF ON A QUORUM AND WE
WILL START AS A SUBCOMMITTEE AM
AND WE WILL START TO AND WELCOME
AS A MEMBER GRAYSON WHO WILL BE
PRESENTING THEM ASSEMBLY BILL
ONE ONE. ONE SIX. YOU MAY BEGIN
WHEN YOU ARE READY THANK YOU.
IT IN THE TYPES OF ELIGIBLE
SECURITIES A LICENSEE CAN OWN IN
CONCLUSION AB ELEVEN SIXTEEN IS
A GOOD GOVERNANCE A MEASURE THAT
EMBRACES REASONABLE CHANGES TO
CALIFORNIA'S MONEY TRANSMISSION
LAW TO MAKE ADMINISTRATION OF
THE PROGRAM EASIER FOR EVERYONE
. WITH THAT I RESPECTFULLY ASK
THAT'S WHEN I VOTE AT THE
APPROPRIATE TIME. THANK YOU SO
MUCH ASSEMBLYMEMBER AGREE SENATE
AT WE WILL NOW MOVE ON TO THE
LEAD WITNESSES IN SUPPORT DO WE
HAVE ANY LEAD WITNESSES IN
SUPPORT C. IN THE ROOM- OR- WE
WILL ACT WE WILL MOVE TO HERE AB
. WE DO WE DO HAVE FROM THANK
YOU- WE WILL MOVE TO ANY OTHER
WITNESSES IN SUPPORT IN TWENTY
ONE HUNDRED- AND NOW WE WERE
MOVE ON TO LEAD WITNESSES IN
OPPOSITION AND I AS AS WE OUR
OUR WITNESS COMES UP I DO WANT
TO ASK FOR A ROLL CALL JUST SO
WE CAN ESTABLISH QUORUM PLEASE.
FEDERAL AMOUNT HERE THE NOTE
HERE NIELLO HERE MILLER HERE
BRADFORD. BRADFORD HERE
CABALLERO MAN YEAH BEEN HERE WE
WENT. TO TINO. PORTANTINO HERE.
RIGHT NOW WE HAVE QUORUM AND WE
WILL NOW HAVE YOU GO AHEAD AND
BEGIN WITH YOUR- TESTIMONY. AT
THANK YOU MEDICARE MEMBERS
MARGARET LATCHING HERE BEHALF OF
PAY. NOT IN OPPOSITION TO BE
VERY CLEAR IS A LITTLE SLOW IN
CASE THEY WERE I DID SEE SOME
OTHER SUPPORTERS WE HAVE A
SUPPORT IF AMENDED POSITION OF
PEOPLE HAS CONCERNS ABOUT THE
PROVISION IN AB SIXTEEN THE
REQUIRE LICENSE T. LICENSEES TO
MEET PAGE. EIGHTY INTERVAL NET
WORTH BASED ON TOTAL ASSETS WE
UNDERSTAND THAT THIS IS AN
IMPORTANT PART OF CONSUMER
PROTECTIONS IN THE MODEL BILL
HOWEVER PEOPLE DOES NOT HANDLE
CONSUMER FUNDS. THERE ARE THE
LEADING TAX PAYMENT PROVIDE
PROCESSOR IN THE U. S. 98% OF
THEIR BUSINESS IS MAKING TAX
PAYMENTS TO FEDERAL STATE LOCAL
GOVERNMENT AGENCIES. INCLUDING
THE F. T. B. CITIES AND COUNTIES
IN ENTITIES LIKE THE P. UC. THEY
WERE WITH FORTY FIVE OF THE-
FORTUNE ONE HUNDRED COMPANIES.
BECAUSE PEOPLE RECEIVES AND
TRANSMITS BILLIONS OF DOLLARS OF
TAX PAYMENTS SOMETIMES IN A
SINGLE DAY OR TWO THE INCREASED
NET WORTH REQUIREMENT TO THE
BILL WOULD REQUIRE THE COMPANY
TO GO FROM FIVE HUNDRED THOUSAND
DOLLARS IN SHAREHOLDER EQUITY
TODAY. TO MORE THAN POTENTIALLY
THIRTY MILLION DOLLARS
INTANGIBLE NETWORK IN LESS THAN
TWO YEARS THAT'S EFFECTIVELY
THIRTY MILLION DOLLARS CASH ON
HAND. OF IN THE- HEALTH PEOPLE A
ACROSS MORE THAN TWO THOUSAND TO
TRADE. WORTH OVER ELEVEN BILLION
. TO MORE THAN FOUR HUNDRED
FIFTY TAXING JURISDICTIONS. THE
BILL DOES ALLOW THE COMMISSIONER
THE FLEXIBILITY TO GRANT A
WAIVER FROM THAT WORK
REQUIREMENTS BUT PEOPLE WOULD
THAT PERSON LEGISLATIVE CLARITY-
SO THAT THEY KNOW THAT THEY
CONTINUE TO PROVIDE BENEFITS TO.
BOTH TAXPAYERS IN THE RECEIVING
ENTITIES THAT GET THOSE TAX
PAYMENTS. I DO ANTICIPATE ONE
QUESTION YOU HAVE WHICH IS WHAT
IS PEOPLE DOING IN OTHER STATES
THAT HAVE ADOPTED THE MODEL LAW.
UNFORTUNATELY THE COMPANY WAS
NOT ENGAGED IN THAT PROCESS. IN
OTHER STATES HASN'T BEEN GAUGED
LET'S SAY PROCESS AN ORDER THEY
ENGAGE WITH ESPS ARE THE ONLY
PLACE WAS TAKEN EFFECT IS IN
SOUTH DAKOTA. AND THEY DON'T
HAVE ANY CLIENTS THERE- IN OTHER
STATES THEY'RE TALKING TO THE
REGULATORS AND SEEKING A
SOLUTION WE ARE NOT SUGGESTING A
SPECIFIC AMENDMENT AT THIS TIME
WE'VE HAD EXTENSIVE
CONVERSATIONS WITH BOTH YOURSELF
. AND THE AUTHOR STEPHANIE THANK
THEM FOR THAT. AND DO HOPE TO
FIND A PATH FORWARD THAT WILL
ENABLE PEOPLE TO CONTINUE TO
OPERATE IN THE TAXING ENTITIES
TO RECEIVE THEIR PAYMENTS IN A
TIMELY AND EFFICIENT MANNER.
EIGHT THANK YOU. AND NOW WE WILL
MOVE TO ANY WITNESSES WANTING TO
TESTIFY VIA THE TELECONFERENCE
OR WITH. AS CAN WE PLEASE OF
MODERATOR- PROMPT ANY
INDIVIDUALS WANTING TO TESTIFY
IN EITHER SUPPORT OR OPPOSITION
OF AB ONE ONE ONE SIX PLEASE.
AND WE WILL BEGIN. THANK YOU
VERY MUCH MADAM CHAIR AS SHE
STATED IF YOU ARE IN SUPPORT OR
OPPOSITION. TO ASSEMBLY BILL
ELEVEN SIXTEEN PLEASE PRESS ONE
FOLLOWED BY ZERO ONE FELL BY
ZERO AT THIS TIME. AND ONE
MOMENT. THAT I'M SURE WE DO HAVE
ONE QUEUING UP.
NINETY THREE YOU ARE OPEN PLEASE
GO AHEAD. SURELY ONE AND MEMBERS
OF THE COMMITTEE RJ CERVANTES-
CALLING ON BEHALF OF ELECTRONIC
TRANSACTIONS ASSOCIATION IN
SUPPORT THANK YOU. AND THERE'S
NO OTHER PARTICIPANTS THAT
QUEUED UP MEDICARE GREAT THANK
YOU VERY MUCH MODERATOR MEMBERS
WERE GONNA BRING IT BACK TO-
MEMBERS FOR ANY QUESTIONS
COMMENTS DISCUSSION. WE HAVE A
MOTION- FROM SENATOR MAN TO MOVE
THE BILL AND THE BASIC CARE
ANYWAY- CLARIFICATION QUESTION.
FOR- FOR MARGARET- YOU MENTIONED
IN OTHER STATES WHERE THIS
SIMILAR LEGISLATION HAS BEEN
PASSED AND- PAY POOL IS DOING
BUSINESS- ARE THEY NOT DOING
BUSINESS ANYMORE AND YOU
INDICATED THEY'RE HAVING
DISCUSSIONS WITH REGULATORS AS
TO WHAT TO DO ABOUT IT YEAH.
THAT'S RIGHT THE LAW MAY HAVE
BEEN HAS BEEN PASSED IN A NUMBER
OF THE STATE TODAY WE DO NOW
SYSTEMS AND I SHOP OF OUTLINING
THAT IT HASN'T TAKEN EFFECT YET-
AGAIN THEY WERE THEY WERE LATE
TO THE PARTY AND SO THEY ARE NOW
TALKING TO THOSE REGULATORS.
ABOUT HOW THEY'LL BE ABLE TO
COMPLY WITH THE LAW TO THEIR-
SPEAKING SEEKING EXEMPTION IN
THOSE STATES ARE TRYING TO FIND
A SOLUTION. THANK YOU. ALL OUR
MEMBERS TO SEE NO OTHER
QUESTIONS OR COMMENTS I THINK
YOU AS A MEMBER I GRAYSON FOR
BRING THIS FORWARD I KNOW THAT
YOU'LL CONTINUE TO BEING
CONVERSATIONS. WITH THE TWEEN-
POSITION SUPPORT- ABOUT YOU KNOW
WHAT THIS LOOKS LIKE AS YOU GO
FORWARD WOULD YOU LIKE TO CLOSE.
YES THANK YOU MADAM CHAIR AND
COMMITTEE MEMBERS I DO REMAIN
COMMITTED- OPEN OFFICE OPEN
MIND- WE ARE ON A FACT FINDING
MISSION- TO LEARN MORE ABOUT
THIS ONE PARTICULAR TRANSMITTER.
AND A MAKING SURE THAT WE DO
FIND- A PATHWAY FORWARD TO BE
ABLE TO AND WE HAVE ALREADY
PROVIDED FLEXIBILITY WITH THE AS
WAS POINTED OUT WITH THE FBI TO
BE ABLE TO MAKE THOSE
EXEMPTIONS- ON AN EXCEPTIONAL
BASIS. AND SO WHATEVER WE CAN DO
TO HELP MOVE THAT FORWARD IN A
MORE CLEAR WAY THAT'S OUR GOAL
AND WE LOOK FORWARD TO GETTING
TO A LANDING SPOT. SO WITH THAT
I RESPECTFULLY ASK FOR. GREAT
THANK YOU SO MUCH WE HAVE A
MOTION OF FROM US SENATOR MANAGE
AND THIS. BILL IS DUE PASSED THE
FIRST AMENDED AND RE REFER TO
THE COMMITTEE ON APPROPRIATIONS
. WE CAN CALL THE ROLL OFF.
MOTION TO PASS. THAT FIRST AMEND
AND- SEND TO APPROPRIATIONS
SENATOR AMONG. WOMEN I NAY LOW
ALL RIGHT HELLO I BRADFORD.
BRADFORD AYE CABALLERO. MAN MAN
I NGUYEN. I KNEW WHEN I
PORTANTINO. MARTIN HI WITH.
GREAT THAT BILL. THANK YOU
BETTER THANK. I DON'T HE SENT
CALENDAR WE HAVE THREE BILLS ON
THE CONSENT CALENDAR AB TWO
THREE ONE AB THREE EIGHT SIX AND
AB ONE THREE ONE TWO DO WE HAVE
A MOTION TO ADOPT THE CONSENT
CALENDAR. THANK YOU SENATOR
BRADFORD MOVES AT MAKES THE
MOTION AND CAN WE PLEASE CALL
THE ROLL FOR THE CONSENT
CALENDAR. CONSENT CALENDAR
CENTER LIMÓN. HI LIMÓN AYE MILLO
ALL RIGHT I BRADFORD BRADFORD I
GOT A YELLOW MAN ON. MAN I WENT
. WHEN I POURTANT. PORTANTINO I
HAVE SIX. GREAT TO SAID THAT TO
US. AT THE CONSENT CALENDAR HAS
SIX VOTES AND WE WILL LEAVE THE
ROLE OPEN FOR MEMBERS TO ADD ON
THANK YOU.
ALL RIGHT SO WE ARE GOING TO
OPEN THE ROLE AND WE WILL START
WITH CONSENT THE CONSENT
CALENDAR IS AB TWO THIRTY ONE AB
THREE EIGHT SIX AND AB THIRTEEN
TWELVE PLEASE CALL THE ROLL.
GIVE ME FOR THE CONSENT CALENDAR
CENTER SENATOR LAMONT VOTING YES
SENATOR KIRBY I DON'T EVER
COMPARE HIGH HAVE SEVEN GREAT WE
HAVE SEVEN AB FOR THAT I AM WE
WILL TO AB ONE ONE ONE SIX BY AS
A MEMBER GRAYSON. MOTIONS TO
PASS BUT FIRST AMEND AND RE
REFER TO THE COMMITTEE ON
APPROPRIATION CENTER LIMÓN
VOTING YES SENATOR CARILLO. I
YES. ARE SO WITH THAT BILL AB
ONE ONE ONE SIX HAS SEVEN VOTES
AND WITH THAT WE WILL GO AHEAD
AND TURN OUR HEARING.