GOOD. LADIES AND GENTLEMEN,
WE'RE REALLY GRATEFUL THAT
YOU'RE HERE AND THANK YOU FOR
TAKING TIME OUT OF YOUR BUSY
SCHEDULES TO BE ABLE TO JOIN THE
SENATE RULES COMMITTEE. THE
SENATE RULES COMMITTEE IS GOING
TO COME TO ORDER TODAY. BEFORE
WE GET INTO ANY FURTHER
BUSINESS. WE'RE GOING TO SAY
GOOD AFTERNOON, MADAM SECRETARY.
MADAM SECRETARY, CAN YOU PLEASE
CALL THE ROLL? MAGUIRE MAGUIRE
HERE, GROVE GROVE HERE, MON.
HERE JONES JONES. HERE LAIRD
HERE, LAIRD HERE OR CORM'S BEEN
ESTABLISHED. THANK YOU SO MUCH
TO EACH OF THE COMMITTEE MEMBERS
ALSO WANT TO SAY THANK YOU. SO
MUCH FOR SENATOR LAIRD FOR
ADVANCING. UH, THE JOINT RULES
COMMITTEE RIGHT BEFORE THIS VERY
GRATEFUL TO SENATOR LAIRD. WE'RE
GOING TO WELCOME OUR PROPOSED
GOVERNOR APPOINTEES WHO ARE
GOING TO BE APPEARING TODAY IN
JUST A FEW MOMENTS WITH DEEP
RESPECT IF IT'S ALRIGHT WITH
EACH OF THE APPOINTEES, WE ARE
GOING TO TAKE UP SOME
ADMINISTRATIVE ITEMS. FIRST
WE'LL GET THROUGH OUR
ADMINISTRATIVE CALENDAR TODAY,
AND THEN WE'LL JUMP RIGHT BACK
TO EACH AND EVERY ONE OF YOU AND
AGAIN. WE'RE REALLY GRATEFUL
THAT YOU ARE HERE TODAY, AND
IT'S JUST GOING TO TAKE A FEW
MOMENTS. LADIES AND GENTLEMEN
COMMITTEE WE'D LIKE TO BE ABLE
TO TURN OUR ATTENTION. TO THE
CALENDAR AND GOVERNOR APPOINTEES
NOT REQUIRED TO APPEAR. IF THERE
ARE NÓ OBJECTIONS. WE'D LIKE TO
BE ABLE TO TAKE THAT UP FIRST
TODAY, AND THAT WOULD BE NOT
REQUIRED TO APPEAR ITEMS. TWO Dð
THROUGH Kò TWO Dð THROUGH Kò. WE
HAVE A MOTION BY MADAM VICE
CHAIR. WE HAVE ANY CONVERSATION.
CURRENCY NÓ COMPENSATION. MADAM
SECRETARY, CAN YOU PLEASE CALL
THE ROLL? MCGUIRE MCGUIRE I,
GROVE GROVE. I EG EG I JONES
JONES, I LAIRD LAIRD, I 5 TO 0.
IT'S 5 TO 0 BIPARTISAN VOTE.
THANK YOU SO MUCH. WE'RE NOW
GOING TO BE MOVING ON TO BILL
REFERRALS. WE'D LIKE TO TAKE UP
ITEM THREE IN REGARD TO
REFERENCE BILLS TO COMMITTEES.
IS THERE A MOTION BETTER BY
CHAIR ADVANCES? THE MOTION ANY
CONVERSATION FROM COMMITTEE?
PARENTS SEE NONE. MADAM, CAN YOU
PLEASE CALL THE ROLL? MCGUIRE I
GROVE GROVE. I EGMOND EGM. I
JONES JONES. I LAIRD LAD. I 5 TO
0. THANK YOU SO MUCH. THAT IS
THE 50 VOTE. LADIES AND
GENTLEMEN COMMITTEE. WE'RE NOW
GOING TO BE MOVING ON TO FLOOR
ACKNOWLEDGEMENTS. THERE IS ONE
CHANGE TO OUR AGENDA TODAY UNDER
FLOOR ACKNOWLEDGEMENTS I ITEM
NUMBER FOUR REQUEST BY SENATOR
DRA. THAT PARTY IS NÓ LONGER
GOING TO BE ABLE TO MAKE IT TO
THE CAPITAL THAT DAY, SO WE'RE
GOING TO SCRATCH SCRATCH ITEM
NUMBER FOUR UNDERFLOOR
ACKNOWLEDGEMENTS WITH THAT
CHANGE. IS THERE A MOTION TO
APPROVE? I DON'T FIVE AND SIX.
YES PLEASE. ITEM FIVE AND SIX BY
MADAM VICE CHAIR HAS BEEN MOVED
ANY CONVERSATION FROM COMMITTEE
CURRENCY, NONE. MADAM SECRETARY,
CAN YOU PLEASE CALL THE ROLL?
MCGUIRE MAGUIRE I, GROVE GROVE.
I EG EG I JONES JONES I. I.
THANK YOU SO MUCH. THAT MOTION
HAS BEEN APPROVED. ALL RIGHT.
LADIES AND GENTLEMEN COMMITTEE.
WE'RE NOW GOING TO BE MOVING TO
GOVERNOR APPOINTEES FOR THOSE
WHO ARE REQUIRED TO APPEAR WE
WILL BE TAKING ITEM ONE A FIRST.
IT'S REALLY GOOD TO SEE HIM BACK
HERE IN THE CAPITAL, AND THAT'S
THE HONORABLE ADRIAN AZARIAN.
SOME OF IT'S WONDERFUL TO SEE
YOU. THANK YOU SO MUCH FOR BEING
HERE WITH US TODAY. UH, A
SIMILAR MEMBER WE ARE GOING TO
AND YOU ARE ALWAYS AN ASSEMBLY
MEMBER. BY THE WAY, UH, YOU ARE
GONNA HAVE THE OPPORTUNITY TO BE
ABLE TO PROVIDE 1 TO 2 MINUTES
FOR YOUR OPENING TESTIMONY. TWO
COMMITTEE FOR OPEN IT UP FOR
COMMITTEE MEMBERS TO BE ABLE TO
ASK ANY QUESTIONS IN ADVANCE
COMMENTS AS WELL. IN YOUR OK
OPENING, WE WELCOME ANY
INTRODUCTIONS OF ANY GUEST THAT
YOU MAY HAVE HERE OR ONLINE
TODAY WE WILL GIVE YOU A TIME.
CHECK ABOUT 30. SECONDS FROM
THAT POTENTIAL TWO MINUTES AND
GIVE YOU A PROMPT LETTING YOU
KNOW THAT YOU'RE CLOSE TO TIME.
SO IT'S WONDERFUL TO SEE YOU.
THANK YOU FOR YOUR SERVICE. THE
FLOOR IS YOURS, SIR. THANK YOU
VERY MUCH. MISTER PRO TEM.
WONDERFUL TO BE HERE WITH ALL OF
YOU. NICE TO SEE ALL THE
FAMILIAR FACES. UM I JUST WANNA
TAKE A MOMENT AND ACKNOWLEDGE,
UH, CHAIR BANKS AND CHAIR AND
MEMBER KRANTZ, WHO ARE HERE FROM
THE PUBLIC EMPLOYMENT RELATIONS
BOARD, AS WELL AS SOME OF THE
STAFF MEMBERS WHO ARE HERE.
THANK YOU TO THEM FOR, UH,
TEACHING ME OVER THE COURSE OF
THE LAST 11 MONTHS OF THE Dð, Ó
S¼ AND DON'T AND HOW THIS AGENCY
WORKS AND OPERATES AND BRINGING
ME UP TO SPEED AND I JUST WANNA
SAY THANK YOU. DIANA MY WIFE WHO
IS I HOPE GETTING A CHANCE TO
WATCH THIS FROM HER WORK. UM AND
THAT'S IT. I'M HAPPY TO TAKE
QUESTIONS. THANK YOU VERY MUCH
FOR YOUR TIME. I REALLY
APPRECIATE YOU BEING HERE. WE'D
LIKE TO BE ABLE TO OPEN IT UP
FOR ANY QUESTIONS OR
CONVERSATION FROM THE COMMITTEE.
ANY COMMENTS? MADAM VICE CHAIR.
THANK YOU, MR PRO TEM. HØI AND
WELCOME BACK TO THE BUILDING.
THANK YOU, AND IT WAS AN HONOR
TO SERVE WITH YOU IN THE
ASSEMBLY, AND IT'S AN HONOR TO
BE ABLE TO ASK YOU A FEW
QUESTIONS FOR YOUR POTENTIAL
CONFIRMATION COMING UP TODAY AND
ON THE FLOOR FOR THE FULL
CONFIRMATION. UM I JUST WANT TO
GO BACK. UM, PRIOR TO THE
PANDEMIC PER INDICATED THAT IT
HAD A SIGNIFICANT BUDGET ISSUES
THAT RESULTED IN BACKLOGS AND
PROCESSING. UM ADJUDICATION FOR
LABOR DISPUTES. HAVE YOU GUYS
MANAGED TO CATCH THAT UP? UM OR
IS THERE STILL A BACKLOG WITH
LABOR DISPUTES? THANK YOU VERY
MUCH FOR THE QUESTION. AND THANK
YOU FOR ASKING THAT, UH, I'M
SURE SOME OF THE TEAM MEMBERS
HERE WOULD BE VERY HAPPY TO HEAR
THAT QUESTION BECAUSE WE'VE
ACTUALLY BEEN SUCCESSFUL IN
REDUCING THE CASE LOAD. IT IS
NOW THE BACKLOG. IT IS NOW BEING
REFERRED TO AS CASE LOAD BECAUSE
IT'S BEEN NORMALIZED TO A RATIO
WHERE EVERYONE IS MANAGING THEIR
CASES. UM THANK YOU FOR THE
BUDGET APPROVAL, ALSO THROUGH
THE LEGISLATURE FOR SUPPORTING
THE WORK THAT PERV IS BE ABLE TO
DO. WE'RE NOW AT A PLACE WHERE
THEY WENT FROM A BACKLOG OF, FOR
EXAMPLE, 80 AT THE BOARD LEVEL
DECISION MAKING TO ABOUT MID
TWENTIES AT THIS POINT, SO IT'S
BEEN HANDLED AND IT'S UH AND,
UH, I'M SURE THERE'S GOING TO BE
ONGOING CONVERSATIONS BETWEEN
THE LEGISLATIVE AND EXECUTIVE
BRANCHES ON POTENTIAL FUTURE
BUDGETARY ITEMS. THANK YOU FOR
THAT. I HAVE THE OTHER. ONLY
OTHER QUESTION I HAVE IS, YOU
KNOW, HAVING WORKED WITH YOU. I
KNOW THAT YOU ARE VERY BALANCED.
UM BALANCED IN. UH, YOU KNOW, WE
NEVER REALLY AGREED 100% ON
LEGISLATION BUT BALANCE IN THE
APPROACH OF LISTENING TO BOTH
SIDES. YOU'VE BEEN VERY GOOD AT
THAT. UH, I, UH WANTED TO JUST
ASK YOU IF YOU COULD JUST SHARE
HOW YOU'RE GOING TO BRING, UM
YOU KNOW, FAIRNESS AND BALANCE
BALANCE TO THE BOARD BETWEEN THE
PUBLIC EMPLOYEE AND THE PUBLIC
EMPLOYEE COMMUNITY IN FIVE
EMPLOYERS THAT, UM, MAY HAVE
DIFFERENT VIEWPOINTS, UM, IN
ISSUES. I APPRECIATE YOUR
QUESTION, AND I APPRECIATE YOU
PREFACE IT THE WAY YOU DID, UM,
BEING IMPARTIAL IS LENDS THE
CREDIBILITY THAT IS NECESSARY
FOR THIS POSITION, SO I WANT TO
CONTINUE PROVIDING THE
CREDIBILITY TO THE POSITION THAT
I HOPE THAT I BROUGHT TO MY
PREVIOUS POSITION, AND I WANT TO
MAKE SURE THAT EVERYONE WHO
COMES BEFORE PER FIELDS THE
LEVEL OF COMFORT AND HAS THE
AWARENESS THAT THEY'RE GOING TO
BE HEARD THEIR CASE IS GOING TO
BE HEARD THEIR ISSUES AND
CIRCUMSTANCES ARE GOING TO BE
HEARD AND LISTENED TO. AND, UH
UH, WHATEVER OUT OUR DECISION
THAT'S MADE IS GOING TO BE BASED
ON ALL THE FACTS THAT ARE
GATHERED BY THE STAFF AND ARE
PRESENTED TO THE BOARD. THANK
YOU, SIR. THANK YOU, MR PRO TEM
FOR THE OPPORTUNITY TO ASK
QUESTIONS. THANK YOU, MADAM VICE
CHAIR. LET'S GO TO PLEASE,
SENATOR. THANK YOU AND WELCOME
BACK. IT'S. AS SOMEBODY THAT
ALSO SAT IN THAT CHAIR FOR
CONFIRMATION THAT IT'S YOU. YOU
ALWAYS WONDER WHAT YOU SAID TO
SOMEBODY OVER 10 YEARS AND YOU
FIND YOURSELF IN THAT CHAIR. SO
UH, II, I THINK YOU REFLECT
REFLECTED YOURSELF WELL IN THE
TIME, SO THAT'S NOT GONNA BE A
THREAT TO YOU. UM I HAD A COUPLE
OF GENERAL QUESTIONS. ONE IS
THAT IF YOU LOOK AT THE
BREAKDOWN, UH ETHNIC AND GENDER
OF HERB, IT IS BASICALLY UH, ALL
WHITE MEN. SO HOW DO YOU, UM,
TAKE SERIOUSLY SORT OF DIVERSITY
AND DEALING WITH THE CASES IN
FRONT OF YOU. GIVEN THAT I
APPRECIATE THE QUESTION AND IT'S
SOMETHING THAT I KNOW WE'VE BEEN
ACTIVELY WORKING ON. UH AND I
AND I. I SAY WE BECAUSE I'M PART
OF THE BOARD AT LEAST. UP UNTIL
THE CONFIRMATION IS DONE. BUT
THE LAST 11 MONTHS I'VE BEEN
WORKING AND LEARNING, BUT IT'S
BEEN SOMETHING THAT UH UH UH,
DIVERSITY HAS BEEN SOMETHING
VERY IMPORTANT TO THE REST OF
THE BOARD MEMBERS AS WELL AS THE
GENERAL COUNSEL. SO, UH, THERE'S
BEEN PROGRESS MADE NOT ENOUGH.
BUT THERE'S BEEN ONGOING
ATTEMPTS TO RECRUIT AND BRING
PEOPLE IN TO MAKE SURE THAT
THERE'S BOTH A GENDER AND RACIAL
AS WELL AS ETHNIC DIVERSITY
AMONG THE RANKS. UM ALSO, LET'S
NOT FORGET THIS IS AN AGENCY
THAT'S BEEN AROUND FOR MAYBE
ONLY ABOUT 40 YEARS OR SO. SO
THERE'S SO MUCH THAT IS GROWING
AND CONTINUING TO CHANGE. IT'S A
VERY NICHE AREA THAT, UH,
PRIMARILY ATTRACTS PEOPLE FROM
THIS VERY SMALL. SPACE OF LABOR
CONTINGENCY. SO I HOPE TO SEE IT
CONTINUE TO GROW AND CHANGE
EVOLVE OVER TIME TO BETTER
REFLECT CALIFORNIA AS WELL.
THANK YOU. AND I'M REALLY GLAD
TO HEAR YOU CAN CONTINUE TO GROW
AFTER 40 YEARS. THAT'S REALLY
INSPIRING. THAT'S LIFE. UM, THE
OTHER THING I WANTED TO THANK
YOU FOR SHORTENING THE A. I JUST
CELEBRATED 50. SO THANK YOU.
WE'RE NOT EVEN GONNA GET INTO
THAT. YOU KNOW, THAT'S IN THE
REARVIEW MIRROR, BUT, UH UM, THE
OTHER THING THAT'S HAPPENED
THAT'S INTERESTING IS OUR
BACKGROUND INFORMATION LISTS?
SORT OF WHAT STATUTES GIVE
OVERSIGHT TO CURB AND I'M
PARTIALLY RESPONSIBLE FIVE
TRANSIT SYSTEMS IN THE STATE BY
LEGISLATION HAVE BEEN ADDED TO
THE JURISDICTION OF PER HOW ARE
YOU SEEING THAT? ARE YOU
ACTUALLY SEEING THAT THEIR CASE
IS COMING AND THAT YOU HAVE TO
SORT OF GET INVOLVED IN WHAT
NORMALLY IS MORE OF A LOCAL
LABOR ISSUE, SO THIS IS THE TIME
WHEN I WOULD ASK FOR A LIFELINE
AND HAVE A STAFF MEMBER COME IN
AND RESPOND, BUT BUT BASICALLY
WHAT WE GO THROUGH IS ONCE UH,
THE CODE SECTION OR THE CODE
AREA IS ADDED, WE GO THROUGH A
RULEMAKING PROCESS AT THE STAFF
LEVEL, AND THAT COULD TAKE SOME
TIME. I KNOW THAT WE'VE BEEN
ACTUALLY UNDERGOING SOME
RULEMAKING RIGHT NOW FOR THE
TRANSIT SPACE IN ORDER. TO START
HEARING CASES AND TAKING CASES
ON AND IF I'M MISSPEAKING
ANYTHING, I'M SURE THAT I'M
GOING TO BE CORRECTED EVENTUALLY
, BUT BUT THIS ISN'T PROBABLY DO
IT IN THE HALLWAY AND YOU WISH
THEY WOULD DO IT NOW. BUT THIS
IS THIS HAS BEEN I KNOW THAT WE
ARE CURRENTLY ACTIVELY DOING
SOME WORK ON RULEMAKING IN THE
TRANSIT SPACE. SO THEN THE ONE
THING I WOULD SAY IS IT WOULD BE
GOOD TO KNOW OVER TIME BECAUSE I
THINK THAT WITH SOME OF THESE
AGENCIES, THE ONE I'M FAMILIAR
WITH AND THE OTHERS THERE WAS
THIS IMBALANCE WHERE A
MANAGEMENT HAD DEEP POCKETS AND
COULD REALLY PUSH AND THE PEOPLE
THAT SORT OF REPRESENTED THE
WORKERS DIDN'T HAVE THE SAME
DEEP POCKETS AND IT WAS UNEVEN.
AND SO THESE GOT ADDED TO THE
JURISDICTION OF HERB TO
BASICALLY ALLOW FOR EQUITY IN
DEALING WITH THOSE ISSUES, AND
IT WAS MY THOUGHT THAT IN MANY
CASES IT WON'T LEAD TO CASES
COMING TO PER IT WILL LEAD TO
THEM BEING WORKED OUT BEFORE
THEY COULD GET THERE. AND SO
THAT WAS PART OF THE NATURE OF
MY QUESTION, BECAUSE, ACTUALLY,
IF YOU'RE NOT SEEING MANY, THEN
IT'S SERVING THAT PURPOSE. BUT
IF YOU'RE STARTING TO SEE THEM,
THAT WOULD BE GOOD OVER TIME FOR
US TO KNOW IN CASE THERE'S
ANYTHING THAT MIGHT BE WITHIN
THE PURVIEW OF THE LEGISLATURE.
I'VE WORKED WITH YOU BEFORE THE
QUESTIONS. I KNEW I WAS GOING TO
VOTE FOR YOU, BUT I JUST WANT TO
THANK YOU FOR YOUR WILLINGNESS
TO SERVE AND APPRECIATE THE
ANSWERS TO THE QUESTIONS. THANK
YOU, SENATOR. I APPRECIATE THE
QUESTIONS AND LOOK FORWARD TO
WORKING WITH YOU AS WELL. THANK
YOU SO MUCH, SENATOR, WE'RE
GOING TO GO TO SENATOR EGM. GOOD
AFTERNOON. ASSEMBLY MEMBER. NICE
TO SEE YOU AGAIN. UH UM. CAN YOU
TELL ME HOW YOUR PAST WORK
EXPERIENCE? ALL YOUR CUMULATIVE
EXPERIENCE WILL WILL AID YOU IN
CARRYING OUT THIS APPOINTMENT IF
YOU SHOULD RECEIVE IT, AND I
FEEL LIKE I HAVE TO ASK YOU
SOMETHING BECAUSE YOU CAME IN.
SO UH, THANK YOU SO MUCH. I
APPRECIATE IT. UM, SO, UH, FIRST
OF ALL, III. I FIRST GOT TO GET
ACQUAINTED WITH PERP. UH, WHEN I
SERVED AS A BUDGET CHAIR, UH, IN
1415 16 PERIOD. AND 2014 1516,
AND IT WAS PART OF THE PURVIEW
OF BUDGETS UP FOR COMMITTEE.
AND, AS YOU KNOW, IN THE
ASSEMBLY BUDGET UP FOR YOU KNOW,
THERE'S THE BIG ITEMS OF
TRANSPORTATION, WATER, HEALTH
CARE, EDUCATION AND THE OTHER
COMMITTEES. AND THEN EVERYTHING
ELSE FALLS INTO SUB FOUR. ASIDE
FROM PUBLIC SAFETY, WHICH IS
ALSO FIVE, SO THAT'S WHEN I
FIRST GOT BETTER ACQUAINTED WITH
THE AGENCY AND THE WORK. IT DOES
, BUT IT WAS ONLY A BUDGET LINE
ITEM IT WASNT UNTIL UH UH FROM
TIME TO TIME HEARING FROM THE
STAFF HEARING FROM REQUESTS.
THAT I. I LEARNED THE NATURE OF
THE WORK AND HOW IT'S CHANGING
OVER TIME. AND ONCE I GOT THE
APPOINTMENT, I WAS ALREADY VERY
CURIOUS AND I WHEN I APPLIED FOR
THE POSITION, IT WASN'T UNTIL I
GOT IN THAT. I REALLY LEARNED.
HOW MUCH WORK IT IS, THEY DO,
AND TO WHAT EXTENT IT IS DONE IN
A IN A WAY TO PROTECT THE
CLIENTS EVERYONE INVOLVED IN THE
PROCESS. UM I THINK AS AN
ELECTED OFFICIAL, YOU'RE A
GENERALIST. AND SO YOU LEARN A
LITTLE BIT ABOUT EVERYTHING. BUT
WHEN YOU TAKE ON A POSITION LIKE
THIS YOU ARE GETTING INTO
EXTREME DETAILS, UH, SOME OF
WHICH YOU HAD NEVER, REALLY
GIVEN TOO MUCH THOUGHT ABOUT OR
YOU DIDN'T HAVE THE OPPORTUNITY
TO THINK ABOUT AND NOW I'M
LEARNING A LOT OF THAT. UH, SO
IT'S BEEN A WONDERFUL
OPPORTUNITY. AND UH UH, I LOOK
FORWARD TO, UH MORE
CONVERSATIONS WITH YOU WHEN I
AM. CONTINUING TO LEARN A LOT OF
THE FACETS OF WHAT WHAT THIS
AGENCY DOES. THANK YOU. THANK
YOU, SENATOR HANGMAN. ANY OTHER
QUESTIONS, COMMENTS FROM THE
RULES COMMITTEE TODAY FOR SOME
MEMBER AZARIAN. HERE AND SEE
NONE. LADIES AND GENTLEMEN, WE
NOW WOULD LIKE TO BE ABLE TO GO
TO PUBLIC COMMENT. WE WELCOME
ANY INDIVIDUAL TO BE ABLE TO
COME FORWARD TO THE PODIUM.
WE'RE GOING TO ASK FOR FOLKS WHO
ARE IN SUPPORT IN SUPPORT OF MR
NAZARIAN. IF HE COULD STEP
FORWARD AT THIS TIME WE'RE
LOOKING FOR FOLKS WHO ARE IN
SUPPORT OF MR ASA DE PLEASE STEP
FORWARD AT THIS TIME. HEARING
SCENE NINE ALL INDIVIDUALS IN
ROOM 2200 WHO WOULD LIKE TO BE
ABLE TO SPEAK IN OPPOSITION. IF
HE COULD PLEASE STEP FORWARD AT
THIS TIME. WE'RE LOOKING FOR
FOLKS WHO MAY BE IN OPPOSITION
STEP FORWARD AT THIS TIME. ALL
RIGHT. WE'RE GOING TO BRING IT
BACK TO COMMITTEE TO BE ABLE TO
SEE IF THERE ARE ANY ADDITIONAL
QUESTIONS. COMMENTS, PLEASE. ON
INFORMATION. WE HAVE A MOTION IN
SUPPORT TO MOVE THE CONFIRMATION
FORWARD. THANK YOU SO MUCH.
SENATOR LAIRD. ANY OTHER ITEMS
FROM THE COMMITTEE? HERE AND SEE
NONE. MADAM SECRETARY. IF YOU
WANT TO CALL A ROLL, PLEASE
MCGUIRE I, GROVE GROVE. I EG EG
I JONES JONES. I LAD, LAD. I 5
TO 0. THAT IS 50. THANK YOU SO
MUCH. IT'S A WE'RE REALLY
GRATEFUL HEADING TO THE SENATE
FLOOR FOR NEXT STEPS. SO THANK
YOU. I REALLY GRATEFUL AND GOOD
TO SEE YOU AGAIN, SIR. LIKEWISE
GREAT. SEEING ALL OF YOU. THANK
YOU VERY MUCH FORWARD TO WORKING
WITH YOU. THANK YOU. PLEASE GIVE
OUR BEST. ALL RIGHT, LADIES AND
GENTLEMEN, WE NOW WOULD LIKE TO
BE ABLE TO MOVE ON TO ITEM ONE.
B ITEM ONE B. WE'RE GOING TO
WELCOME KAREN SHINE TO BE ABLE
TO COME FORWARD. MS SHINE IS THE
GENERAL COUNSEL AND DEPUTY
DIRECTOR FOR THE EMPLOYMENT
DEVELOPMENT DEPARTMENT. MS.
SHANE WE WELCOME YOU TO
COMMITTEE. IT'S REALLY GOOD TO
SEE YOU. THANK YOU SO MUCH FOR
BEING HERE. WE'RE GONNA PROVIDE
THE OPPORTUNITY TO BE ABLE TO
PROVIDE TO BE ABLE TO ADVANCE 1
TO 2 MINUTES FOR YOUR OPENING
TESTIMONY TO THE COMMITTEE WILL
THEN OPEN IT UP TO THE COMMITTEE
MEMBERS TO ASK ANY QUESTIONS.
ADVANCE ANY COMMENTS IN YOUR
OPENING? WE, OF COURSE. WELCOME
ANY INTRODUCTIONS,
ACKNOWLEDGEMENTS OF GUESTS WHO
MAY BE WITH YOU HERE IN THE ROOM
OR ONLINE AND WE WILL BE KEEPING
TIME I'LL GIVE YOU A 32ND HEADS
UP AS YOU GET CLOSE TO THAT TWO
MINUTES. THE SHINE IT IS A
PLEASURE TO HAVE YOU HERE. THE
FLOOR IS YOURS. THANK YOU SO
MUCH. THANK YOU. UM, GOOD
AFTERNOON PRO TIM MCGUIRE AND
MEMBERS OF THE COMMITTEE. THANK
YOU FOR CONSIDERING MY
CONFIRMATION AS GENERAL COUNSEL
FOR THE EMPLOYMENT DEVELOPMENT
DEPARTMENT. IT'S AN HONOR TO BE
HERE AND A PRIVILEGE TO WORK
WITH MY FELLOW PUBLIC SERVANTS
TO SUPPORT THE VALUABLE
RESOURCES AND SERVICES EDD
PROVIDES TO VULNERABLE
CALIFORNIANS HERE WITH ME TODAY
IS MY SISTER EVELYN AND MY
BROTHER, BRIAN AND WATCHING
REMOTELY ARE MY SIBLINGS ARABEL,
YVETTE GREGORY AND CELESTE. MANY
BELOVED NIECES AND NEPHEWS,
PARTICULARLY JOY. UH, JOE, I AM
ETERNALLY GRATEFUL FOR THEIR
SUPPORT. I WOULD BE REMISS IF I
DIDN'T MENTION MY MOTHER. GRACE
PERKINS, BORN IN. WHILE SHE HAS
BEEN GONE FOR OVER 20 YEARS, I
STILL MISS HER EVERY DAY. SHE
WAS BORN IN ALABAMA IN 1933 IN
THE MIDDLE OF THE DEPRESSION.
SHE GREW UP IN JIM CROW SOUTH IN
THE IN THE JIM CROW SOUTH, AND
SHE MARCHED IN THE BIRMINGHAM
BUS STRIKES AND SHE WAS A FORCE
TO BE RECKONED WITH. SHE WAS
VERY SUPPORTIVE OF MY CAREER,
AND I AM BLESSED TO WALK IN HER
FOOTSTEPS. FINALLY I'D LIKE TO
THANK THE GOVERNOR FOR
APPOINTING ME TO THIS POSITION.
I WAS HUMBLED TO HAVE BEEN
CONSIDERED, AND I'M GRATEFUL
THAT HE ENTRUSTED ME WITH THIS
IMPORTANT WORK. WITH THAT I'D
LIKE TO. I LOOK FORWARD TO
TAKING YOUR QUESTIONS. THANK YOU
. THANK YOU SO MUCH. AND THANK
YOU FOR ACKNOWLEDGING YOUR MOM.
SHE MUST BE INCREDIBLY PROUD. SO
GRATEFUL THAT YOU'RE HERE AND
THANK YOU FOR ACKNOWLEDGING YOUR
FAMILY AS WELL. LADIES AND
GENTLEMEN, WE'D LIKE TO BE ABLE
TO OPEN IT UP TO BE ABLE TO SEE
IF THERE'S ANY QUESTIONS. PLEASE
LET START WITH SENATOR EDMAN.
THANK YOU VERY MUCH. AND, UH UH,
AS SOMEBODY WHOSE MOTHER HAS
ALSO BEEN DEAD 20 YEARS AND
MISSES HER EVERY DAY. THANK YOU
FOR BRINGING HER AND YOU ARE
CERTAINLY THE MANIFESTATIONS OF
HER DREAMS. UM SO THANK YOU FOR
TAKING ON A TOUGH THING LIKE THE
E Dð Dð, BUT I SEE YOU CAME
BEFORE FROM WATER. AND SO YOU
KNOW ABOUT CONFLICTS IN
CALIFORNIA. UM BUT MOVING FROM A
POSITION ON THE DEPARTMENT OF
WATER, WHICH DOESN'T SEE AS MUCH
PUBLIC FACING NOW. THE E Dð
COURSE, THERE'S A LOT OF FOCUS
ON THE PUBLIC AND WHY YOU'RE NOT
RESPONSIBLE FOR THE POLICIES YOU
ARE FOR THE LEGAL PART OF IT. SO
CAN YOU TALK ABOUT HOW THE
DEPARTMENT FROM YOUR PERSPECTIVE
HAS CONTINUED TO EVOLVE? CHANGE
SINCE THE PROBLEMS THAT WE
ENCOUNTERED OVER THE PANDEMIC.
YES, THAT'S A VERY IMPORTANT
QUESTION. THANK YOU, SENATOR. UM
THE DEPARTMENT LEARNED A LOT
FROM THE PANDEMIC, AND I THINK
ONE OF THE MAIN THINGS THE
DEPARTMENT LEARNED IS CLAIMANTS
HAD A HARD TIME CONTACTING US
DURING THE PANDEMIC, AND, UM, OF
COURSE IT'S BECAUSE PEOPLE WANT
TO KNOW THE STATUS OF THEIR
CLAIM THAT A VERY IMPORTANT
RESOURCES SO ONE OF THE THINGS
THAT THE DEPARTMENT DID DURING
THE PANDEMIC WAS, UM, YOU KNOW,
INSTEAD OF TO CALL US, UH, WE
MADE, UH WE CREATED A, UM UM, A
PORTAL WHERE PEOPLE COULD LOG IN
AND SEE REAL TIME INFORMATION
ABOUT THEIR CLAIM SO THAT THEY
WOULDN'T HAVE TO CALL. WE ALSO
STARTED INSTITUTING TEXT
MESSAGES SO THAT WOULD PROVIDE
UPDATES ON THE STATUS OF THEIR
CLAIM. SO WE RECEIVED YOUR
APPLICATION. WE NEED MORE
INFORMATION. YOU'VE RECEIVED A
PAYMENT AND SO WE'RE LOOKING AT
EXPANDING THOSE TEXT MESSAGES AS
PART OF E Dð Dð NEXT. UM THAT
BEING SAID, YOU KNOW, THE CALL
CENTER IS OPERATING ON AN OLDER
PLATFORM, AND SO IT PRIORITY FOR
EDD. NEXT WE ARE GOING TO BE
WORKING WITH AMAZON WEB SERVICES
AND INTER AND I BELIEVE THAT'S
THE SAME CONTRACTOR THAT Dð M VÆ
USES. AND SO WHAT THEY WILL
BRING IS, YOU KNOW, MODERN
TECHNOLOGY THAT WILL ALLOW FOR
SCHEDULED CALLBACKS SO THAT
PEOPLE DON'T HAVE TO WAIT ON
HOLD A LIVE CHAT FEATURE, AND
I'LL ALSO OFFER ANALYTICS THAT
WILL ALLOW US TO FIGURE OUT WHY
PEOPLE ARE CALLING SO WE CAN
MAYBE ADDRESS THOSE ISSUES. THAT
THEY DON'T HAVE TO COME. AND WE
THINK WITH THOSE ADDITIONAL
CHANGES THAT WILL IMPROVE THE
CUSTOMER EXPERIENCE GREATLY. AND
CAN ALSO SPEAK AS YOU PROVIDE
MORE AVENUES FOR COMMUNICATION.
HOW DO WE PUT UP SAFEGUARDS
AGAINST FRAUD? RIGHT SO WE
LEARNED A LOT ABOUT FRAUD DURING
THE PANDEMIC AS WELL, UM, AND
ONE OF THE THINGS THAT THE
DEPARTMENT INSTITUTED DURING THE
PANDEMIC WAS, UM, AN ONLINE WAY
TO VERIFY IDENTITIES. ID ME. WE
ALSO WORK WITH THOMSON REUTERS
WHO IMPLEMENT OUR FRAUD FILTERS,
AND WE MONITOR THOSE FILTERS
REGULARLY TO ADJUST THEM AS
NECESSARY. UM MOVING FORWARD, UM
, ONE OF THE THINGS THAT THE
DEPARTMENT IS LOOKING IS LOOKING
AT IS MAKING IT EASIER. UH, TO
VERIFY IDENTITY, SO WE'RE
LOOKING AT FRICTIONLESS SO
CALLED FRICTIONLESS WAYS OF
VERIFYING IDENTITIES AND THAT'S
UM UH SOFTWARE USED BY BANKS AND
FINANCIAL INSTITUTIONS IS HIGHLY
SECURE, AND IT COULD CREATE AN
EASIER PROCESS FOR CLAIMANTS.
AND MY FINAL QUESTION IS
SPEAKING OF THE BANK PROCESS.
HOW IS THE TRANSITION GOING FROM
BANK OF AMERICA TO A NEW BANKING
PARTNER? THANK YOU FOR THAT
QUESTION. UM, YOU KNOW IT'S AN
IMPORTANT TRANSITION. IT'S A BIG
TRANSITION, AND WE STARTED
WORKING ON THIS A YEAR AGO, AND
WE TOOK INPUT FROM OUR SHARE OUR
STAKEHOLDERS. UM AND WE TOOK
LESSONS LEARNED FROM THEM
PANDEMIC AND WE STARTED
COMMUNICATING ABOUT IT. UM, BACK
IN DECEMBER, WE SENT LETTERS TO
CLAIMANTS WITH EXISTING ACCOUNTS
TO LET THEM KNOW ABOUT THE
CHANGE. WE WORKED WITH MEDIA
PARTNERS IN LEGISLATIVE PARTNERS
TO GET THE WORD OUT. WE ARE ALSO
CONTINUING TO CONTACT CLAIMANTS
BY SENDING EMAILS AND TEXT
MESSAGES. UH, INFORMING THEM OF
THE CHANGE. OUR CALL CENTERS ARE
READY TO TAKE CALLS. WE HAVE A
DEBIT CARD WEB PAGE THAT PEOPLE
CAN GO TO FOR FURTHER
INFORMATION. MONEY NETWORK HAS
ONE B VÀ HAS ONE AS WELL. AND
YOU KNOW, THE CALL CENTERS ARE
STAFFED AND INFORMED OF THE
CHANGES SO THAT THEY CAN ANSWER
ANY QUESTIONS. COME THEIR WAY.
THANK YOU. THANK YOU. YEAH.
THANK YOU SO MUCH. SENATOR
AIKMAN APPRECIATE THAT, PLEASE.
CERTAINLY. FIRST THANK YOU. FOR
MEETING WITH ME TODAY, AND IT
WASN'T JUST WATER. I KNOW YOU
WERE. YOU HAD THE MISFORTUNE OF
BEING ASSIGNED TO OROVILLE DAM
AT THE TIME OF THE CRISIS, AND
SO, UM, JUST ALL I CAN SAY IS
THANK YOU FOR YOUR SERVICE,
BECAUSE I KNOW, UM, I THOUGHT
YOU HAD TO LOOK AROUND FOR THE
ONE THING THAT MIGHT BE MORE
COMPLICATED THAN YOU LANDED ON
Dð Dð SO MAYBE THAT'S HOW YOU
GOT HERE. BUT UM, I THOUGHT I
WOULD FOLLOW UP ON SENATOR
AMAN'S QUESTION. MAYBE A
SLIGHTLY DIFFERENT WAY IS SO THE
PANDEMIC'S BEEN GOING FOR ABOUT
THREE MONTHS. AND SUDDENLY YOU
GET APPOINTED TO COME INTO EDD
WHEN IT IS AT THAT POINT, THE
DEPARTMENT'S BEEN BLOWING UP. UM
IT'S IN THE NEWSPAPERS EVERY DAY
. AND AFTER ALL THAT HAPPENED,
YOU'RE COMING INTO IT. WHAT DID
YOU FIND WHEN YOU GOT THERE?
WHAT WERE SOME OF THE THINGS
THAT YOU HAD TO DO RIGHT FOR
GIVEN THAT SITUATION? THANK YOU,
SENATOR. AND IT IT WAS NICE TO
MEET YOU THIS MORNING. THANK YOU
FOR MEETING WITH ME. UM, I
JOINED THE DEPARTMENT. UM IN
JUNE OF 2021. SO BY THE TIME I
GOT THERE THEY WERE WELL ON
THEIR WAY TO RESPONDING TO THE
FRAUD FOR ME. AS YOU MENTIONED I
CAME FROM THE DEPARTMENT OF
WATER RESOURCES, SO IT WAS QUITE
A TRANSITION AND I REALLY
FOCUSED ON SORT OF PUTTING MY
HEAD DOWN AND LEARNING THIS NEW
DEPARTMENT AND NEW AREA OF LAW
FOR ME AS WELL AS MEETING MY
COWORKERS AND GETTING TO KNOW
THEM AND WORK WELL WITH THEM.
AND UM, YOU KNOW, PUTTING MY
HEAD DOWN AND WORKING REALLY
HARD AND MAKING SURE THAT I
LEARNED THE DEPARTMENT AND ITS
PROGRAMS AND HELPING OUT WHERE I
COULD, AND THAT WAS REALLY MY
FOCUS THOSE FIRST COUPLE OF
MONTHS. AND THEN IN YOUR AND
THANK YOU FOR THAT, IN YOUR
COMMENTS IN SORT OF THE PREP
STUFF WITH THE COMMITTEE AND HIS
STATEMENT YOU MENTIONED THAT ONE
OF YOUR GOALS IS TO WORK WITH A
CLAIMANT ADVOCATE GROUPS AND I
WAS JUST GONNA ASK W. WHAT IS
THAT? MEAN AND WHAT CATEGORIES
OF CONCERNS DO THEY HAVE? THAT
YOU WOULD BE WORKING WITH WHEN
YOU DID THAT? YEAH, CLAIM
ADVOCATES. THANK YOU, SENATOR
CLEMENT ADVOCATES ARE REALLY
IMPORTANT STAKEHOLDERS AND
PARTNERS WITH US BECAUSE A LOT
OF PEOPLE DO NOT KNOW ABOUT OUR
PROGRAMS AND THEY REALLY ARE
HELPFUL IN GETTING THE WORD OUT
THERE TO CLAIM IT SO THAT THEY
CAN FIND OUT ABOUT OUR PROGRAMS
AND FIGURE OUT IF THEY'RE
ELIGIBLE. UM AND SO WE WORK
CLOSELY WITH ADVOCATES. THEY
HAVE GOOD COMMUNITY FEEDBACK
ABOUT THE CHANGES THAT WE'RE
MAKING AND WHAT THE COMMUNITY
NEEDS AND THAT'S VERY HELPFUL.
WE ALSO WORK THE ADVOCATES ON
LANGUAGE ACCESS RIGHT NOW, WITH
OUR LANGUAGE ACCESS EFFORTS. WE
ARE TRANSLATING FORMS TO MAKE
SURE THAT THEY ARE AVAILABLE IN
THE TOP SEVEN LANGUAGES AND
PUTTING THOSE ON THE WEBSITE WE
HAVE WITH OUR CALL CENTERS
DEDICATED LINES FOR THE TOP
SEVEN LANGUAGES. SO THAT, UM,
YOU KNOW, IF YOU SPEAK ONE OF
THE TOP SEVEN LANGUAGES, YOU
DON'T HAVE TO CALL ONE NUMBER.
YOU UH TO, YOU KNOW, GO, THEN GO
PRESS A MENU AND GET THE
LANGUAGE THAT YOU NEED. YOU CAN
JUST CALL ONE NUMBER. REACH AN
AGENT WHO SPEAKS YOUR LANGUAGE.
IF YOU'RE NOT IF YOU DON'T SPEAK
ONE OF THE TOP SEVEN LANGUAGES,
WE DO HAVE ANOTHER LANGUAGE LINE
THAT YOU CAN CALL AND WE HAVE,
UM UM TRANSLATORS THERE WHO CAN
SPEAK UP TO 100 AND 50 DIFFERENT
LANGUAGES. AND SO WE, YOU KNOW,
IT'S VERY HELPFUL TO WORK WITH
THE ADVOCATES TO MAKE SURE THAT
THE SERVICES THAT WE ARE
PROVIDING ARE RESPONSIVE TO THE
NEEDS OF THE COMMUNITY. I
APPRECIATE YOUR RESPONSE,
BECAUSE THAT'S JUST SORT OF THE
GREAT PRIORITY TO HAVE JUST
GIVEN THE SITUATION. YOU FIND
YOURSELF IN. AND SO I APPRECIATE
THAT. THANKS FOR ANSWERING THE
QUESTIONS, AND I LOOK FORWARD TO
BEING ABLE TO SUPPORT YOU. THANK
YOU, SENATOR. THANK YOU SO MUCH.
WE'RE GONNA TURN TO THE VICE
CHAIR. DO YOU MIND PULLING THE
MICROPHONE A LITTLE CLOSER TO
YOU? SO THAT, UH, Tð VÆ S¼ IS
HAVING A HARD TIME PICKING UP?
SURE THANK YOU. IF YOU DON'T
MIND, JUST PULL IT A LITTLE.
THAT'S GREAT. THANK YOU SO MUCH.
I APOLOGIZE, PLEASE BEAM VICE
CHAIR. YOU, MR PRO. TIM IT WAS A
PLEASURE TO MEET YOU YESTERDAY.
THANK YOU FOR SPENDING TIME WITH
ME. UM AND YOU HAD A STAFFER
FROM MY DISTRICT OR HIS PARENTS
WHO LIVE FROM MY DISTRICT. SO
UM, THAT WAS NICE AS WELL, BUT
NOT A NEW HIGH SCHOOL. WOULD YOU
JUST STOP? IT'S NOT YOUR TURN.
UM. I APOLOGIZE FOR THAT, UH, IN
AUGUST OF 2023, THE STATE
AUDITOR KIND OF KIND OF BUT
SLAMMED CALIFORNIA'S
UNEMPLOYMENT AGENCY AS HIGH RISK
DUE TO THE FRAUD. THAT WAS, UM,
YOU KNOW, PERPETRATED AGAINST
TAXPAYERS. BASICALLY ALL THE
MONEY THAT GOES TO YOU GUYS
COMES FROM TAXPAYERS. UM IT IS
100% EMPLOYER FUNDED, WITH THE
EXCEPTION OF WHAT WE GOT FROM
THE FEDERAL GOVERNMENT. BUT
AGAIN, THAT'S ALL TAXPAYER MONEY
THAT CAME HERE, UM THE STATE
AUDITOR SLAMMED CALIFORNIA'S
UNEMPLOYMENT AGENCY, CALLING IT
HIGH RISK. THERE'S AN ESTIMATE
OUT THERE OF 20 BILLION TO $32
BILLION IN FRAUD. DO YOU HAPPEN
TO KNOW WHAT THAT NUMBER REALLY
IS? OR CAN YOU GIVE US YOUR BEST
ESTIMATE? IT'S MY UNDERSTANDING
THAT WE HAVE WORKED ON THAT
NUMBER AND IT'S 19 BILLION. IT'S
19 BILLION. THANK YOU. THAT IS
GOOD INFORMATION. UM. AND I KNOW
THAT WE TALKED YESTERDAY ABOUT
MOVING FORWARD AND THE THINGS
THAT THE EDD HAS PUT IN PLACE.
UM TO MAKE SURE THAT SOME OF
THAT FRAUD UM OBVIOUSLY IT WAS
THE POO F THAT WERE MOSTLY
FRAUDULENT THAT YOU STILL THE E
Dð Dð HAS TAKEN AUDITORS
RECOMMENDATIONS AND PUT THINGS
IN PLACE. CAN YOU DESCRIBE WHAT
ARE SOME OF THOSE THINGS THAT
YOU'VE PUT IN PLACE TO ELIMINATE
FRAUD THAT WAS TAKING PLACE. SO
LIKE YOU WERE SAYING, UM, 95% OF
THE FRAUD WAS IN THE FEDERAL
PROGRAM, AND THAT'S YOU KNOW,
FEDERAL FUNDS. THE REMAINING 5%
WAS IN THE TRADITIONAL UI
PROGRAM. AND SO SOME OF THE
THINGS THAT THE DEPARTMENT DID,
UM, TO ADDRESS FRAUD, WAS MAKING
SURE THAT OUR IDENTITY
VERIFICATION PROCESS WAS
EFFECTIVE. SO WE INSTITUTED WE
STARTED WORKING WITH I Dð ME WHO
CAN VERIFY IDENTITIES. IN REAL
TIME. WE ALSO INSTITUTED FRAUD
FILTERS WITH THOMSON REUTERS AND
WE ADJUST THOSE FILTERS. UM AS
NECESSARY. WE STARTED, UM, ALSO
CROSS CHECKING IDENTITIES WITH
èC Dð èC R TO MAKE SURE THAT
THE PERSONS WHO WERE APPLYING
WERE NOT ALSO INCARCERATED. THAT
WAS AN IMPORTANT STEP AND AGAIN
MOVING FORWARD. WE'RE WORKING
WITH NEW VENDORS AND ANOTHER
VENDOR. IN ADDITION TO ID, SO
CURE WHO CAN INSTITUTE
FRICTIONLESS? UM I Dð
VERIFICATION THAT IS VERY
SECURE. THANK YOU. HAVE YOU
NOTICED WITH THESE NEW PROGRAMS
THAT YOU GUYS ARE AT EDD ARE
ABLE TO IDENTIFY FRAUD THAT
COMES IN AND IF SO, IS IT MORE
OR LESS ATTEMPTS FOR FRAUD PREPA
DURING PANDEMIC OR CURRENTLY.
WELL, I CAN SAY, SENATOR, I
BELIEVE THAT, YOU KNOW. BROUGHT
PEOPLE WHO DO THIS TYPE OF CRIME
. I MEAN, THEY'RE VERY CREATIVE.
AND SO WE HAVE TO BE VERY
DILIGENT. AND I THINK WITH THE
PROCEDURES THAT WE HAVE IN PLACE
WE ARE WE ARE STOPPING A LOT OF
FRAUD. I BELIEVE WE STOPPED $120
BILLION WORTH OF FRAUD ATTEMPTS.
THANK YOU. I DO WANT TO ASK A
COUPLE OF FOLLOW UP QUESTIONS ON
THE QUESTIONS THAT I TALKED TO
YOU ABOUT ONLY BECAUSE I KNOW
THERE ARE A LOT OF EMPLOYERS IN
THE STATE OF CALIFORNIA THAT ARE
PROBABLY WATCHING THE SYRIAN AND
EXPECTING THESE QUESTIONS. ASKED
THE U I TEST TRUST FUND IS
SEVERELY IN DEBT, AND THAT IS AN
ADDITIONAL TAX ON EMPLOYERS
EVERY YEAR BECAUSE OF THE TRUST
FUND IN DEBT TO THE FEDERAL
GOVERNMENT UNDER THE FOOD TO TAX
REDUCTION ACT OR THE FOOD DE TAX
REDUCTION. WE TALKED ABOUT THAT.
UM I ASKED YOU IF THERE WAS A
WAY THAT THE E Dð Dð COULD, YOU
KNOW, MITIGATE THIS FOR
EMPLOYERS OR ADDRESS THAT? CAN
YOU PLEASE REPEAT WHAT YOU SAID
ABOUT THE LEGAL ISSUE AND THE
LAW THAT IS IN PLACE THAT
REQUIRES US TO GO THROUGH THIS?
WE USE POLICE RESTATE THAT FOR
THEIR BENEFIT, RIGHT? SO THANK
YOU. THANK YOU FOR I KNOW THAT'S
AN IMPORTANT ISSUE. UM SO UNDER
THE FEDERAL UNEMPLOYMENT TAX ACT
, WHICH IS THE, UM, THE ACT THAT
WE FOLLOW FOR REPAYING A DEBT.
TO THE FEDERAL GOVERNMENT. AND
AS YOU KNOW, DURING THE
PANDEMIC, THE NEED FOR
UNEMPLOYMENT BENEFITS WAS SO
HIGH THAT WE WENT INTO A DEFICIT
THERE AND SO UNDER THE FEDERAL
UNEMPLOYMENT TAX ACT. NORMALLY
EMPLOYERS GET A CREDIT AGAINST
THEIR TAX RATE. SO THE I THINK
IN CALIFORNIA THE TAX RATE IS
LIKE 6% BUT THEY GET A CREDIT
AGAINST THAT. SO THE EFFECTIVE
TAX RATE IS 0.6% AND SO WHEN
THERE'S A DEBT THAT UM, CREDIT
REDUCES, RESULTING IN A HIGHER,
EFFECTIVE TAX RATE. SO RIGHT NOW
, I THINK IT'S UP TO 1.2% AND SO
THAT'S THE FEDERAL PROCESS IN
PLACE THAT WE HAVE TO FOLLOW
UNTIL THE DEBT IS REPAID. I DO
THINK ALSO, I WOULD SAY, AND I
DID HAVE A CHANCE TO REFLECT ON
OUR CONVERSATION YESTERDAY. IT
WAS VERY HELPFUL, AND I ENJOYED
IT. UM I, I DO THINK THAT THE
WORK THAT THE TAX BRANCH DOES
AND FINDING EMPLOYERS WHO
MISCLASSIFYING WORKERS AND ARE
NOT PAYING THEIR FAIR SHARE IS
ALSO IMPORTANT TO THIS BECAUSE
THAT THAT HURTS EVERYONE. AND IF
WE CAN FIND EMPLOYERS AND MAKE
SURE THEY ARE PAYING THEIR FAIR
SHARE THAT INCREASES THE POT AND
ALSO HELPS TO REDUCE THAT DEBT.
I DON'T WANT EMPLOYERS TO
MISREPRESENT OR MISUNDERSTAND
YOUR COMMENTS. BUT WHEN YOU TALK
ABOUT EMPLOYERS PAYING THEIR
FAIR SHARE, YOU'RE TALKING ABOUT
THOSE EMPLOYERS THAT TAKE A
RECEPTIONIST OR A AN EMPLOYEE
THAT SHOULD BE CLASSIFIED AS
EMPLOYEE AND THEY PUT THEM OUT
THERE AS A SUBCONTRACTOR, AND
THEY DON'T PAY ANY TAXES ON THEM
. THANK YOU FOR THAT CURVE. YOU
WANT ANY OF THAT FRAUD TO TAKE
PLACE AND EVERYBODY SHOULD BE
CLASSIFYING EMPLOYEES IN THE
CORRECT FASHION, SO I JUST WANT
TO MAKE SURE THAT EMPLOYERS ARE
LIKE HØI PF. AND NOW YOU'RE THIS
AND I DON'T I DON'T PAY MY YOU
KNOW, I JUST WANT TO DILUTE THAT
IF I CAN. UM, I DO, UH, I WANT
TO THANK YOU FOR MEETING WITH ME
AND I DO WANT TO SAY YOU KNOW,
LIKE I SAID YESTERDAY YOU'RE
VERY QUALIFIED ATTORNEY. I DO
AGREE NOT VERY OFTEN WITH MY
COLLEAGUE THAT SITS TO MY LEFT,
BUT, UM, HE, UH HE IS RIGHT. I
MEAN, YOU HAD TO SEARCH OUT
DILIGENTLY TO FIND SOMETHING
HARDER TO WORK ON THAN THE WATER
BOARD. UM A STATE WATER
RESOURCES CONTROL BOARD IN.
CONGRATULATIONS YOU FOUND IT. UM
SO, UM, YOU KNOW, WITH YOUR
BACKGROUND EXPERIENCE AND YOUR
THE LEGAL PRECEDENTS THAT YOU'VE
SET IN THE LEGAL EXPERIENCE THAT
YOU HAVE. I THINK YOU'RE VERY
QUALIFIED FOR THE JOB. WE MADE
NOT AGREE ON SOME THINGS ABOUT
PROCESSING THESE ISSUES. UM, BUT
YOU'RE FOLLOWING THE LAW, AND
THAT'S WHAT WE EXPECT IS
INTEGRITY IN THAT POSITION, SO I
LOOK FORWARD TO YOUR
CONFIRMATION. THANK YOU,
SENATOR. THANK YOU SO MUCH. I
WOULD LIKE TO BE ABLE TO SEE IF
THERE'S ANY ADDITIONAL COMMENTS
OR QUESTIONS. FROM THE COMMITTEE
AT THIS TIME. ALL RIGHT HERE IN
èC N. UH, LADIES AND
GENTLEMEN, HERE IN ROOM 2200. WE
WELCOME HER COMMENT. WE WILL ASK
MEMBERS WHO ARE HERE TODAY, THE
PUBLIC WISHING TO BE ABLE TO
TESTIFY IN SUPPORT OF M IF HE
COULD STEP FORWARD TO THE PODIUM
, WE WELCOME YOU NOW. THOSE IN
SUPPORT FROM AINE, PLEASE STEP
FORWARD NOW. RIGHT HERE IN AND
SEEING NÓ ONE ADVANCE. WE NOW
WOULD LIKE TO BE ABLE TO SEE IF
THERE'S ANYONE IN OPPOSITION M.
IF YOU COULD PLEASE STEP FORWARD
AT THIS TIME LOOKING FOR THOSE
WHO ARE IN OPPOSITION. ALL RIGHT
. WE'RE GOING TO BRING YOU BACK
TO BE ABLE TO SEE IF THERE ARE
ANY LAST MINUTE QUESTIONS OR
COMMENTS. SO I'LL MAKE THE
MOTION TO MOVE TO THE FLOOR.
THANK YOU SO MUCH. WE HAVE A
MOTION BY MADAM VICE CHAIR
COMMITTEE. I'M ON HOLD HERE FOR
ONE MOMENT TO SEE IF WE WANT TO
BE ABLE TO GET SENATOR MON ON
THIS VOTE AS WELL. IF YOU DON'T
MIND HOLDING FOR ONE MINUTE, LET
ME JUST CHECK IN WITH THE
SEGMENT.
ALL RIGHT, LADIES AND GENTLEMEN,
HERE WE GO. WE ARE GOING TO BE
OPENING UP THE ROLE. MADAM
SECRETARY. COLORS SHINE. MAGUIRE
MAGUIRE I GROVE GROVE EYE.
EGMOND UND I. JONES JONES. I
LAIRD LAIRD, I 5 TO 0. THAT IS A
5 TO 0. UNANIMOUS VOTE.
CONGRATULATIONS UH, THE
AMMUNITION WILL BE HEADING TO
THE FLOOR. WE THANK YOU FOR YOUR
TIME AND AGAIN. NEXT STEP WILL
BE THE SENATE FLOOR. THANK YOU
SO MUCH FOR BEING WITH US, MS
SHINE. THANK YOU, SENATOR. THANK
YOU FOR MENTIONING YOUR FAMILY
AND YOUR MOM AS WELL. THANK YOU
SO MUCH. HE.
ALL RIGHT, LADIES AND GENTLEMEN
COMMITTEE. WE'RE NOW GOING TO BE
MOVING ON TO OUR FINAL APPOINTEE
WHO IS REQUIRED TO APPEAR WE
WANT TO WELCOME GREGORY YOUNG, A
SENIOR DEPUTY COMMISSIONER
DIVISION OF CORPORATIONS AND
FINANCIAL INSTITUTIONS FROM THE
DEPARTMENT OF FINANCIAL
PROTECTION AND INNOVATION, MADAM
SECRETARY. WE ARE GOING TO SEE
THAT LIKE SIX TIMES FAST TODAY,
UH, FIRST AND FOREMOST, UH, MR
YANG, WE WELCOME YOU TO
COMMITTEE. THANK YOU SO MUCH FOR
TAKING THE TIME. THANK YOU.
YOU'RE GONNA HAVE THE
OPPORTUNITY TO PROVIDE 1 TO 2
MINUTES OF TESTIMONY. OBVIOUSLY,
WE WOULD WELCOME UH, ANY
INTRODUCTIONS OF FAMILY OR
FRIENDS THAT YOU HAVE IN THE
AUDIENCE HERE TODAY OR ONLINE?
UM I'LL GIVE YOU A PROMPT WHEN
YOU HIT CLOSE TO 30. SECONDS OF
THAT TWO MINUTES. I'VE BEEN
OPENING STATEMENT AGAIN, MS
YOUNG. THANK YOU SO MUCH FOR
BEING HERE. WELCOME THE
COMMITTEE. THE FLOOR IS YOURS.
THANK YOU, PRESIDENT PRO TEM
MCGUIRE AND MEMBERS OF THE
COMMITTEE. I AM HONORED TO BE
HERE TODAY REGARDING MY
APPOINTMENT AS SENIOR DEPUTY
COMMISSIONER. FOR CORPORATIONS
AND FINANCIAL INSTITUTIONS AT Dð
FP. I WOULD LIKE TO TAKE A
MOMENT TO THANK, UM MY LOVELY
WIFE. WHO IS HERE WITH ME TODAY,
RIGHT BEHIND ME. UM SHE IS MY
SUPPORT AND FOUNDATION, AND I'M
THANKFUL TO HER. AS WELL AS I'D
LIKE TO RECOGNIZE, UH, MY Dð FP
TEAM WHO IS HERE TODAY FOR ALL
OF THEIR SUPPORT AND GUIDANCE,
AS WELL AS A NUMBER OF FRIENDS
AND FAMILY MEMBERS STATEWIDE AND
NATIONWIDE WHO ARE WITNESSING
THIS TODAY. AND WHILE I COME
BEFORE YOU AS JUST ONE
INDIVIDUAL, I REPRESENT AN
EMBODIMENT OF THE BANKERS,
MORTGAGE OFFICERS, COMMUNITY
LEADERS, ELECTED OFFICIALS,
ADVOCATES AND OTHERS WHO LOOK
LIKE ME. I STAND ON THEIR
SHOULDERS. AND IT IS THROUGH
THEIR GUIDANCE MENTORSHIP
SUPPORT. AND TIRELESS
COMMITMENT. THAT I AM BEFORE YOU
TODAY. FOR THAT. MY HEART IS
FILLED WITH GRATITUDE. AND
THANKS. I HAVE BUILT A
SUCCESSFUL CAREER INTERTWINING
MY EXPERTISE IN FINANCIAL
SERVICES. NONPROFIT WORK. AND
COMMUNITY LEADERSHIP. TO EDUCATE
AND EMPOWER. MOST UNDESERVED
COMMUNITIES. I AM EXCITED. TO
HAVE THIS OPPORTUNITY TO LEAD IN
ONE OF THE MOST DYNAMIC AND
INNOVATIVE FINANCIAL ECOSYSTEMS
IN THE NATION. I WILL USE MY
REGULATORY OVERSIGHT TO ENSURE
THAT ALL CALIFORNIANS FINANCIAL
LIVES ARE PROTECTED. AND TO
ENSURE THERE ARE FINANCIAL
INSTITUTIONS AS WELL AS NON-BANK
ENTITIES. ARE OPERATING WITHIN A
FAIR MARKET. AND IN A SAFE AND
SOUND MANNER, 32ND. THANK YOU
FOR YOUR TIME AND CONSIDERATION
THIS AFTERNOON. AND I LOOK
FORWARD TO YOUR QUESTIONS. THANK
YOU SO MUCH AND AGAIN. WE ARE
GRATEFUL THAT YOU'RE APPEARING
HERE TODAY. IT'S GOOD TO SEE
YOU. WE'D LIKE TO BE ABLE TO
OPEN IT UP FOR THE COMMITTEE FOR
ANY QUESTIONS. COMMENTS THAT
THEY WOULD LIKE TO BE ABLE TO
ADVANCE WILL GO TO MADAM VICE
CHAIR FIRST MADAM VICE CHAIR.
THE FLOOR IS YOURS. THANK YOU,
MR P, TIM. GOOD AFTERNOON, AND
THANK YOU FOR BEING HERE TODAY
BEFORE US. UH, I JUST HAVE A FEW
QUESTIONS. THAT UM, UH, I HAVE
CONCERNS WITH, UM I'M REALLY
CONCERNED ABOUT THE CURRENT
MARKET CONDITIONS AND BANKING
AND OUR LOCAL COMMUNITY BANKS IN
CALIFORNIA. IS THERE ANYTHING
THAT TROUBLES YOU OR THAT YOU
ARE CONCERNED ABOUT? UM I KNOW
THAT I'VE READ SOME ARTICLES AND
THEY TALK ABOUT THE RISK THAT WE
HAVE FOR OUR COMMUNITY BANKS,
UM, ESPECIALLY WITH THE FEDERAL
DEBT. ARE THERE CONCERNS THAT
YOU HAVE WITH YOUR VAST
EXPERIENCE AND KNOWLEDGE? UM, IN
THE BANKING INDUSTRY. THANK YOU,
SENATOR FOR YOUR YOUR YOUR
QUESTION. UM, AS YOU'RE AWARE,
UM DF P PUBLISHED LAST MAY A
VERY DETAILED REVIEW. Dð FP S¼
OVERSIGHT AND REGULATION OF
SILICON VALLEY BANK. AND THE
REPORT DOES A GREAT JOB OF
REVIEWING THE CIRCUMSTANCES THAT
LED TO THE FAILURE. AND DETAILS.
KEY TAKEAWAYS. AND NEXT STEPS
FOR Dð FP. INCLUDING ADDITIONAL
DETAILS ON HOW WE HAVE DEVELOPED
BETTER SYSTEMS TO PROMPTLY
REMEDIATE THE DEFICIENCIES. FROM
OUR LICENSEES. WITH THAT SAID, I
BELIEVE THE EVENTS THAT OCCURRED
LAST SPRING REALLY REINFORCES
THE NEED TO CONTINUE TO WORK IN
PARTNERSHIP. WITH OUR FEDERAL
REGULATORS. MAKE THE APPROPRIATE
UPGRADES IN IT AND IMPROVE
EFFICIENCIES. WORKING WITH
REGULATORS IN OTHER STATES. AND
MAKING SURE WE HAVE THE STAFF
TRAINED TO MEET SOME OF THE
INCREASING COMPLEXITIES OF OUR
LICENSEES. WITH THAT SAID, I'VE
LIVED THROUGH SEVERAL èC I LIVE
THROUGH THE 2008 BANKING CRISIS.
I HAVE EXPERIENCED SEVERAL
MERGERS AND ACQUISITIONS.
THROUGHOUT MY BANKING CAREER,
AND THOSE HAVE ALL BEEN LEARNING
OPPORTUNITIES. I BELIEVE OUR
FINANCIAL SYSTEM IS HEALTHY. AND
STRONG HERE IN CALIFORNIA. AND
IT'S A HEALTHY ECOSYSTEM THAT
INCLUDES LARGE BANKS. COMMUNITY
BANKS. REGIONAL BANKS. AND
CREDIT UNIONS. AND IT'S IN THIS
ROLE. THAT I'M HONORED TO HAVE
THE OPPORTUNITY TO REALLY
PROMOTE THE SAFETY AND SOUNDNESS
OF OUR FINANCIAL INSTITUTIONS
HERE IN CALIFORNIA. THANK YOU. I
APPRECIATE YOUR CONFIDENCE IN
THE SYSTEM IN THE REAL WORLD. I
GUESS I'M A BUSINESS OWNER. AND
UM, YOU KNOW, WE JUST MADE SOME
MAJOR CHANGES IN OUR BANKING. WE
WANTED TO MAKE SURE WE WERE WITH
THE, UH HIGHER RATED BANK. WE
WERE WITH A GREAT BANK FOR A LOT
OF YEARS. UM BUT THERE WAS
CONCERN AFTER THE SITUATION THAT
WE HAD WITH BANK FAILURES. UM,
AND I JUST WANT TO MAKE SURE
THAT, UM THAT YOUR RESPONSE, I
BELIEVE YOUR RESPONSE WAS MORE
THAN ADEQUATE. AND I WANT PEOPLE
TO UNDERSTAND THAT YOU ARE
SOMEONE WHO UNDERSTANDS THIS
SYSTEM AND THAT YOU ARE VERY
CONFIDENT THAT WE ARE NOT IN A
SITUATION, UM, OF DIRE NEED IN
OUR BANKING SYSTEM IN
CALIFORNIA, EVEN WITH THE DEBT
THAT IS INCURRING ON OUR FEDERAL
GOVERNMENT SIDE AND THE CONCERN.
A LOT OF BUSINESS OWNERS BRING
TO ME IS THERE'S A $250,000
GUARANTEE ON BANKING. UM FOR THE
F Dð. I èC AND I KNOW THAT'S
DIFFERENT THAN WHAT YOU GUYS ARE
DOING. UM, BUT BUT I GUESS THE
CONCERN IS THAT IF THE BANK
FAILS LIKE WE HAD LAST YEAR, UM
WILL THOSE PEOPLE BE ABLE TO
RETAIN THEM? WILL THEY GET THEIR
MONEY BACK? THAT'S IN THE
BANKING SYSTEM, AND I HAVE A LOT
OF PEOPLE THAT HAVE HUGE
CONCERNS, AND WHEN THEY FOUND
OUT YOU WERE GOING TO BE HERE
THERE, THEY SAID, ASK HIM WHAT
HE THINKS ABOUT THE CONFIDENCE
OF CALIFORNIA BANKING BECAUSE
THERE ARE LARGE CONCERNS OUT
THERE THAT WE WILL HAVE A
PROBLEM WITH THE DEBT THAT'S
BEING INCURRED. AND THE F Dð. I
èC UH, BACKING OF THE $250,000.
PER ACCOUNT, OR PER BANK FOR A
COUNTER PER BANK. I THINK IT'S
PER BANK BANK. YEAH, PER PER
ACCOUNT PER ACCOUNT. YEAH,
250,000 UNINSURED PER ACCOUNT.
PEOPLE DO HAVE SOME CONCERNS
WITH THAT ESPECIALLY SMALL
BUSINESSES. I MEAN, I KNOW THE
AVERAGE PERSON LOOKING OUT THERE
MIGHT THINK. OH SHE'S ASKING
QUESTIONS ABOUT $250,000 IN A
BANK ACCOUNT. BUT FOR A SMALL
BUSINESS THAT'S ONE WEEK'S WORTH
OF PAYROLL AND WORKERS, COMP AND
BILLS. UM SO I JUST WANT TO
REITERATE THE FACT THAT DO STATE
THAT WITH YOUR VAST EXPERIENCE
THAT WE SHOULD HAVE NOTHING TO
WORRY ABOUT WHEN IT COMES TO OUR
FINANCIAL INSTITUTIONS IN
CALIFORNIA. YES THANK YOU,
SENATOR FOR YOUR FOR YOUR
COMMENTS AND AS PART OF ARE
ENHANCED. SUPERVISION THAT IS
ONE OF THE AREAS THAT WE WILL
CONTINUE TO LOOK AT. AND LOOK AT
A HIGHER LEVEL. UM AND IT'S THE
HEIGHTENED MANAGEMENT AROUND,
UH, UNINSURED DEPOSITS DEPOSITS
THAT DO EXCEED THAT $250,000.
AMOUNT OBVIOUSLY, FOR THOSE THAT
FALL UNDER THAT THOSE ARE F Dð.
I èC IN SHORT, BUT WHAT WE SAW
FROM LAST SPRING WAS THE, UH THE
UNINSURED DEPOSITS AND THE
IMPACT THAT THAT HAD TO OUR
BANKS. THANK YOU, SIR. THANK YOU
VERY MUCH FOR ANSWERING THAT
QUESTION. THANK YOU SO MUCH. IN
MY CHAIR. THANK YOU SO MUCH.
COMMISSIONER WE WOULD LIKE TO BE
ABLE TO SEE IF THERE'S ANY
ADDITIONAL COMMENTS OR QUESTIONS
FROM THE COMMITTEE COMMENTS OR
QUESTIONS FROM THE COMMITTEE,
PLEASE. THANK YOU, THANK YOU FOR
YOUR WILLINGNESS TO SERVE, AND I
APPRECIATE THE FACT THAT YOU
ANSWERED. SO MANY QUESTIONS DID
THE FORM THAT WAS SENT TO YOU
AND IN MEETING WITH THE RULES
COMMITTEE, ONE OF THE THINGS I
WANTED TO ASK YOU ABOUT IS YOU
COMMENTED IN YOUR WRITTEN
RESPONSE. THE ISSUE OF CANNABIS
BANKING. AND IT WAS INTERESTING
BECAUSE YOU SORT OF CALLED OUT.
UH THAT A BANK MAY BE OPEN TO
RISKS BY TAKING A BANKING MONEY
RELATED TO FEDERALLY ILLEGAL
DRUGS AND THAT THERE'S ACTUALLY
MORE CREDIT UNIONS ENGAGING IN
CANNABIS BANKING, BECAUSE, UH,
UM IN JUST DIFFERENT, WHAT THEY
PERCEIVE MIGHT BE DIFFERENT
LEVELS OF RISK. I WAS WONDERING
IF YOU WOULD JUST COMMENT ON THE
STATE OF THAT NOW AND HOW IT
INTERSECTS WITH WITH WHAT YOU DO
OR WHAT YOU INTEND TO DO. THANK
YOU, UH, SENATOR FOR YOUR FOR
YOUR QUESTION, UH, SPECIFICALLY
AROUND. UM CANNABIS? UH Dð FP. I
REALIZES THAT THEY'RE STILL
EXIST. IN THE BANKING AND CREDIT
UNION INDUSTRY A RELUCTANCE TO
FULLY ENGAGE IN BANKING.
CANNABIS RELATED BUSINESSES. TO
THE LACK OF CLARITY. AT THE
FEDERAL LEVEL. WE CONTINUE TO
CLOSELY MONITOR POTENTIAL
CHANGES AT THE FEDERAL LEVEL. UM
AND THEN. 2019 WE RELEASED
GUIDANCE. NOTING THAT THE
DEPARTMENT WOULD NOT BRING ANY
REGULATORY ACTIONS AGAINST STATE
CHARTERED BANKS OR CREDIT UNIONS
SOLELY FOR ESTABLISHING A
BANKING RELATIONSHIP WITH THE
LICENSED CANNABIS BUSINESS. UM
AND THEN LAST YEAR IN
PARTNERSHIP WITH THE CONFERENCE
OF STATE BANK SUPERVISORS, WE
RELEASED A CANNABIS JOB. A TO
ASSIST STATE EXAMINERS. IN THE
EXAMINATION OF FINANCIAL
INSTITUTIONS. THAT MAY BE
BANKING, CANNABIS RELATED
BUSINESSES. SO AT THE STATE
LEVEL, WE ARE NOT IMPOSING. ANY
REGULATORY RESTRICTIONS FOR
THOSE STATE BANKS OR OR CREDIT
UNIONS THAT WANT TO ENGAGE, BUT
THE CONCERN IS REALLY AT THE
FEDERAL LEVEL SO WE CONTINUE AND
WILL CONTINUE. TO WATCH AND SEE
WHERE AND HOW, UM, OUR FEDERAL,
UH, GOVERNMENT DECIDES TO MOVE
ON THIS ISSUE. I APPRECIATE
THAT, AND I WAS GOING TO ASK A
FOLLOW UP QUESTION. BUT YOU JUST
IN ESSENCE ANSWERED IT. AND I
THINK THE THING IS, IS THAT I
WILL JUST AND I. I KNOW I HAVE
COLLEAGUES THAT WILL AS WELL BE
INTERESTED OVER TIME AND HOW
THIS APP PLAYS OUT BECAUSE,
OBVIOUSLY, IF THE VOTERS OF
CALIFORNIA DO A REGULATORY
SCHEME THAT LEGALIZES IT, AND WE
WOULD WANT THE OTHER AGENCIES TO
FOLLOW, BUT IF THE FEDERAL
GOVERNMENT NEVER GETS THERE,
THEN THEY'RE IN A DIFFERENT
PLACE, AND IT CREATES
SITUATIONS. WHERE. PEOPLE'S LACK
MONEY IN BOXES AND DO DIFFERENT
THINGS THAT THEY'RE ALREADY A
DISPROPORTIONATE NUMBER OF
ATTACKS ON CANNABIS. UH UM,
BUSINESSES, SO I THINK WE'D JUST
BE INTERESTED OVER TIME TO, UM
MONITOR THAT PROGRESS. AND THEN
THE OTHER QUESTION I WAS GONNA
ASK IS THAT ACTUALLY, DUE TO A
BILL. THERE WAS A REORGANIZATION
GOING ON IN IN YOUR AGENCY. I
WAS WONDERING UM YOU KNOW? HOW
THAT IS GOING AND HOW YOU
MONITOR WHETHER IT'S SUCCESSFUL
OR THEY, YOU KNOW WHAT ARE YOUR
BENCHMARKS FOR KNOWING THAT
BECAUSE THAT WAS IMPLEMENTED
THAT THAT THINGS HAVE IMPROVED
OR OPERATING BETTER OR STILL
NEED TO FOR SOME REASON? THANK
YOU, SIR. I'M NOT. I'M NOT. SURE
I'M FOLLOWING YOUR YOUR QUESTION
. WAS IT THEN ASSEMBLY MEMBER
LIMÓN BILL IN IN IN 2020. SHE IS
NOW A COLLEAGUE OF OURS IN THE
SENATE, AND IT IT WAS KNOWN AS
THE CALIFORNIA CONSUMER
FINANCIAL PROTECTION LAW CHANGED
THE NAME OF THE DEPARTMENT. AND
IT CHANGED SOME OF THE
OPERATIONS. MAYBE IT WAS JUST
BEFORE YOUR EXPERIENCE, SO IT'S
SOMETHING THAT THAT YOU MIGHT
GET UP TO SPEED ON OVER TIME,
BUT I WAS SORT OF CURIOUS TO
HAVE A SENSE OF HOW THAT WAS
WORKING AND WHETHER IT WAS
DEEMED SUCCESSFUL. YES. NOW
THANK YOU. AND WHAT I'D LIKE TO
DO IS MAYBE HAVE SOMEONE SENATOR
ON OUR TEAM TO GET BACK TO YOU
TO ADDRESS THAT SPECIFICALLY, I
IT IS MY UNDERSTANDING. THERE
HAVE BEEN A LOT OF ITERATIONS
LEADING UP TO WHAT IS NOW THE
DEPARTMENT OF FINANCIAL
PROTECTION AND INNOVATION. BUT I
DEFINITELY WOULD LIKE TO TAKE,
UH, YOUR QUESTION BACK, UH, TO
TEAM AND HAVE SOMEONE, UH, GET
BACK TO YOU SPECIFICALLY ON
THAT. I APPRECIATE IT. THANK YOU
VERY MUCH. THANK YOU, SENATOR.
THANK YOU, SIR. AND SENATOR
JONES. MR COMMISSIONER, JUST ONE
COMMENT. IT IS PIGGYBACKING ON
WHERE SENATOR LAIRD WAS. I THINK
YOU HIT THE NAIL ON THE HEAD IN
REGARDS TO CANNABIS BANK, RIGHT
AS WE COME OUT, I'M FROM A
DISTRICT THAT HAS LARGE AMOUNT
OF CANNABIS. IF I COULD BE
CANDID AND THE BIGGEST CHALLENGE
, I THINK, BOTH FOR THE INDUSTRY
THAT IS NOW LEGAL IN THE STATE
AND CAND ON THE SAFETY SIDE. IT
IS A LACK OF ABILITY IN THE
FEDERAL SIDE TO BE ABLE TO BANK
AND YOU HAVE IN PARTICULAR SOME
COMMU SOME, UH, CREDIT UNIONS
THAT DECIDED TO BE ABLE TO
ADVANCE. BANKING OF THOSE
BUSINESSES AT RISK OF LOSING
THEIR FEDERAL LICENSE. AND I
KNOW THIS IS SOMETHING THAT IS
BEYOND YOUR CONTROL. BUT I KNOW
A SIGNIFICANT FRUSTRATION IN WE
ARE NEVER GOING TO BE ABLE TO
GET TO THE SAFETY THAT WE NEED
WITH THE INDUSTRY AND, UH, HAVE
THE INDUSTRY SUCCEED WITHOUT
BEING ABLE TO BANK SECURELY. SO
AGAIN, MR COMMISSIONER, YOU
ANSWERED IT REALLY WELL WITH MR
LAIRD, BUT I'M JUST GONNA CHIME
IN HERE AND KNOW THAT THIS IS AN
ONGOING CHALLENGE. I THINK FOR
THE INDUSTRY AS YOU WELL KNOW,
NOW ABSOLUTELY. THANK YOU,
SENATOR PRO TIM MAGUIRE. UH AND
IT IS SOMETHING THAT WE ARE
WATCHING VERY CLOSELY IN TERMS
OF WHAT HAPPENS AT THE FEDERAL
LEVEL GOOD TIMES RIGHT THERE.
HEY LET WISH HERE. THANK YOU SO
MUCH. WE'RE GRATEFUL. WE'RE
GONNA HAVE YOU HANG WITH US HERE
JUST A BIT BEFORE WE GO TO
PUBLIC COMMENT. WE WANT TO BE
ABLE TO SEE ANY FURTHER
QUESTIONS, COMMENTS HERE AND WE
WOULD LIKE TO BE ABLE TO ADVANCE
PUBLIC COMMENT. THOSE WHO WOULD
LIKE TO BE ABLE TO SPEAK IN
SUPPORT OF THE COMMISSIONER.
WE'RE GOING TO WELCOME YOU TO BE
ABLE TO COME UP TO THIS PODIUM.
IF YOU COULD PLEASE STATE YOUR
FIRST AND LAST NAME ALONG WITH
YOUR ORGANIZATION. WELL, I MEAN,
FOLKS WHO ARE IN SUPPORT. GOOD
AFTERNOON, SIR. THANK YOU SO
MUCH FOR BEING WITH US. GOOD
AFTERNOON. MY NAME IS WALTER
BROWN. I'M A NATIONAL CHAIR OF
THE URBAN FINANCIAL SERVICES
COALITION. MULTIPLE STRATEGIES
WORK COMMITTEE ALSO RUN A
PRIVATE MORTGAGE COMPANY OUT OF
WALNUT CREEK, CALIFORNIA I'VE
KNOWN GREG SINCE 2005 MET HIM
WHEN HE WAS PRESIDENT OF THE SAN
FRANCISCO BAY AREA CHAPTER OF
THE COALITION FOUND IN VIEW
EXCELLENT LEADER. EXCELLENT
TECHNICALLY. AND HE FOLLOWS
THROUGH. UH HIM. BEING IN THIS
POSITION IS A REAL ASSET TO YOU.
THANK YOU, MR BROWN. THANK YOU
FOR BEING WITH US TODAY. IT'S
GOOD TO SEE YOU. THANK YOU SO
MUCH. WE'RE GOING TO WELCOME OUR
NEXT SPEAKER TO PLEASE COME
FORWARD. IF YOU COULD PLEASE
STATE YOUR FIRST AND LAST NAME
ALONG WITH THE ORGANIZATION.
GOOD AFTERNOON. GOOD AFTERNOON.
THANK YOU, MR PRESIDENT, PRO TEM
MCGUIRE AND MEMBERS OF THE
COMMITTEE. I AM EZRA GARRETT,
THE S¼ VÆ P OF PUBLIC AFFAIRS
AND IMPACTED OPPORTUNE WE ARE A
COMMUNITY BASED LENDER FOUNDED
IN CALIFORNIA WE HAVE BEEN
CERTIFIED BY THE U S¼ TREASURY
AS A COMMUNITY DEVELOPMENT
FINANCIAL INSTITUTION SINCE 2009
IN RECOGNITION OF OUR MISSION TO
SERVE FAMILIES FROM LOW AND
MODERATE INCOME COMMUNITIES WHO
HAVE TYPICALLY BEEN SHUT OUT OF
THE MAINSTREAM FINANCIAL SYSTEM.
I ALSO CHAIR THE BOARD OF THE
CALIFORNIA FINANCIAL SERVICES
ASSOCIATION. WE REPRESENT
HUNDREDS OF Dð FP I LICENSES
ACROSS THE STATE. UH AND I'LL
SHARE THAT, UH, IN MR YOUNG'S
SHORT TIME WITH THE AGENCY.
WE'VE BEEN VERY PLEASED WITH HIS
OPENNESS AND PROACTIVE
ENGAGEMENT WITH OUR INDUSTRY. HE
HAS VISITED OUR RETAIL LOCATIONS
MET WITH OUR EMPLOYEES TALKED
WITH OUR CUSTOMERS TO LEARN
ABOUT THE ISSUES FACING US AND
THE PEOPLE THAT WE SERVE. UH AND
WE'VE BEEN VERY IMPRESSED WITH
HIS CREATIVE AND INNOVATIVE
APPROACH TO SOLVING PROBLEMS, SO
WE RESPECTFULLY ENCOURAGE YOUR
SUPPORT FOR HIS NOMINATION.
THANK YOU. IT'S GOOD TO SEE MR
GARRETT. THANK YOU SO MUCH FOR
BEING HERE TODAY. REALLY
GRATEFUL THAT YOU WOULD TAKE THE
TIME. THANK YOU SO MUCH. GOOD
AFTERNOON. MR CHAIRMAN, MEMBERS,
MY KNUTSON. I'M WITH KNUTSON AND
ASSOCIATES. I'M HERE IN MY
PERSONAL INDIVIDUAL CAPACITY
TODAY. I'VE KNOWN MR YOUNG
PRETTY MUCH MY WHOLE CAREER
APOLOGIZE, GREG, IF THAT GIVES
AWAY TOO MUCH, BUT HERE WE ARE,
UM, HE HE IS A UNIQUE
COMBINATION OF TALENT ACQUIRED
KNOWLEDGE, LEADERSHIP SKILLS,
SUBJECT MATTER, EXPERTISE,
COMPASSION AND A DESIRE TO SERVE
AND HELP OTHERS IN WAYS THAT
WILL IMPROVE THEIR LIVES. UM
HE'S EXACTLY THE KIND OF PERSON
WE NEED IN PUBLIC SERVICE. I WAS
VERY EXCITED WHEN I HEARD THAT
HE WAS GOING TO BE APPOINTED. UM
AND FROM MY PERSPECTIVE, IT
WOULD BE HARD TO FIND SOMEONE
WHO'S BETTER SUITED FOR THE JOB,
AND IT'S A VERY DIFFICULT JOB.
AND UM, RESPECTFULLY URGE THAT
HE BE CONFIRMED. THANK YOU SO
MUCH GOOD TO SEE YOU. LET'S GO
TO OUR NEXT SPEAKER. GOOD
AFTERNOON, MA'AM. THANK YOU SO
MUCH FOR BEING HERE. THANK YOU.
GOOD AFTERNOON. SENATORS ANNA
MARIE AVALA FARIAS. I'M HERE ON
MY PERSONAL CAPACITY, BUT I AM
ALSO A GUBERNATORIAL APPOINTEE
TO THE CALIFORNIA HOUSING
FINANCE AGENCY BOARD. AND IT IS
WITH GREAT PLEASURE AND HONOR
THAT I'M HERE TO SUPPORT MY LONG
TERM FRIEND OVER 20 PLUS YEARS
WHO I HAVE GOTTEN TO SEE HIM
GROW PROFESSIONALLY AND OCCUPY
MANY SPACES IN THE PUBLIC AND
PRIVATE SECTOR IN NONPROFIT
SECTOR. I CAN'T THINK OF ANYONE
MORE DESERVING OF THIS
APPOINTMENT TO SERVE THE STATE
OF CALIFORNIA AND I'M JUST
HONORED. NOT ONLY BE HERE BUT TO
ALSO, UM, ENCOURAGE THE
CONFIRMATION OF SOMEONE WHO IS
GOING TO BE SUCH A GREAT ASSET
TO THE STATE OF CALIFORNIA. SO
THANK YOU SO MUCH. THANK YOU SO
MUCH REALLY GRATEFUL FOR YOUR
COMMENT TODAY. GOOD AFTERNOON,
SIR. WELCOME THANK YOU. UH, I
STAND IN SUPPORT OF A FRIEND. UM
AUNT FRATERNITY BROTHER, GREG
YOUNG. MY NAME IS JAMAL MILLER.
UM I HAVE NOT BEEN TO A SENATE
RULES COMMITTEE HEARING SINCE
JULY. 2ND 2014 AND I REMEMBER
DISTINCTLY BECAUSE THAT'S WHEN I
WAS CONFIRMED BY A COMMITTEE
LIKE THIS TO BE CALIFORNIA'S
FIRST EVER DEPUTY DIRECTOR OF
THE OFFICE OF HEALTH EQUITY IN
THE STATE DEPARTMENT OF PUBLIC
HEALTH AND ONE OF THE KEY SOCIAL
DETERMINANTS OF HEALTH THAT I
ONLY NOT ONLY ADVOCATE THEN, BUT
NOW, AS A PRIVATE SECTOR HEALTH
CARE EXECUTIVE IS OUT OF
ECONOMIC MOBILITY AND INCOME
SECURITY AND HAVING KNOWN, UH,
HIS PREDECESSOR AND KNOWING THAT
THE BATON HAS BEEN HANDED OFF TO
GREG TO LEAD THIS IMPORTANT PART
OF THIS INSTITUTION, I HAVE NÓ
DOUBT IN HIS ABILITY TO BE AN
ADVOCATE. UH UH, THROUGH HIS
PROFESSIONAL EXPERTISE IN ACUMEN
, AS WELL AS HIS LIVED
EXPERIENCE AND FOSTER AND HIS
ROLE A CALIFORNIA WHERE FROM AN
ECONOMIC AND FROM A HEALTH
STAND. RIGHT IS FAR MORE
EQUITABLE THAN IT IS TODAY, SO
I'M PROUD TO STAND AND SUPPORT
OF GREG'S CONFIRMATION, UM, TO
THIS IMPORTANT ROLE. MS MILLER.
THANK YOU SO MUCH. WE LOOK
FORWARD TO HEARING SOME STORIES
OFFLINE ABOUT THE COMMISSIONER.
SO THANK YOU SO MUCH. WE'RE
GRATEFUL YOU'RE HERE. ALL RIGHT.
WE'RE GONNA SEE IF THERE'S
ANYONE ELSE IN SUPPORT OF THE
COMMISSION. IF YOU COULD PLEASE
STEP FORWARD AT THIS TIME, LAST
CALL FOR SUPPORT. WE'RE NOW
GOING TO ASK IF THERE'S ANYONE
IN OPPOSITION. IF YOU COULD
PLEASE ADVANCE AT THIS TIME.
WE'RE GOING TO DO LAST CALL FOR
OPPOSITION. SEE NÓ. LET'S BRING
IT BACK TO COMMITTEE. ME MEMBERS
. WE LOOK FOR QUESTIONS,
COMMENTS OR A MOTION AS WELL. A
MOTION TO MOVE TO THE FLOOR. ALL
RIGHT. WE DO HAVE A MOTION BY
MADAM VICE CHAIR. THANK YOU SO
MUCH. MADAM SECRETARY, IF YOU
WANT TO PLEASE CALL THE ROLL.
MAGUIRE MAGUIRE. I, GROVE GROVE.
I EDMUND. EDMUND. I JONES. I
JONES I LE I 5 TO 0. ZERO
CONGRATULATIONS, COMMISSIONER.
IT'S WONDERFUL TO HAVE YOU IN
FRONT OF US TODAY. THANK YOU TO
YOUR FAMILY, GRATEFUL THAT
THEY'RE HERE AS WELL. NEXT UP
WILL BE THE SENATE FLOOR. THANK
YOU SO MUCH. THANK YOU ALL SO
MUCH. THANK YOU. IT'S GREAT TO
SEE YOU. THANK YOU SO MUCH.
LADIES AND GENTLEMEN COMMITTEE
AND TO ALL THOSE WHO ARE IN ROOM
2200. THIS CONCLUDES TODAY'S
AGENDA WE WANT TO SAY THANK YOU
SO MUCH TO ALL WHO PARTICIPATE
IN TODAY'S PUBLIC TESTIMONY.
THANK YOU. WE'RE GRATEFUL WE ARE
GOING TO BE ENTERING OUR
EXECUTIVE SESSION. WE WILL GIVE
IT A COUPLE OF MINUTES. ASK
FOLKS IF YOU DON'T MIND IT. WITH
ALL DUE RESPECT, CLEARING THE
ROOM AND RULES COMMITTEE WILL BE
GOING TO OUR EXECUTIVE SESSION
AGAIN. THANK YOU ALL FOR BEING
HERE TODAY, TAKING TIME AND YOUR
BUSY SCHEDULE. IT'S BEEN
WONDERFUL TO SEE YOU.