WELL, ON BEHALF OF THE SENATE
RULES COMMITTEE, WE WELCOME YOU
TO THE HEARING TODAY. THANK YOU
SO MUCH FOR TAKING THE TIME OUT
OF YOUR BUSY SCHEDULES. WHAT
WE'D LIKE TO BE ABLE TO DO IS
ESTABLISH A QUORUM AND THEN TAKE
CARE OF SOME ADMINISTRATIVE
BUSINESSES, AND THEN WE'LL GET
TO THOSE APPOINTEES WHO ARE
SCHEDULED TO APPEAR. SO WHY
DON'T WE KICK OFF AND GET A
QUORUM ESTABLISHED? MADAM
SECRETARY, CAN YOU PLEASE CALL
THE ROLL? MAGUIRE HERE. MAGUIRE
HERE. GROVE. HERE. GROVE. HERE.
EGGMAN. HERE EGGMAN! HERE!
JONES! I'M HERE! JONES. HERE.
LAIRD HERE. LAIRD. HERE. QUORUM.
QUORUM HAS BEEN ESTABLISHED. WE
DO WANT TO LET FOLKS KNOW THAT
WI-FI ON ONE OF THE BUSIEST
WEEKS OF THE YEAR IS DOWN, SO WE
DO APOLOGIZE. SOUTHWEST AIRLINES
Þ. THEY'RE GOING TO HAVE TO PAY
ATTENTION. THIS IS GOING TO BE
GOOD. EXACTLY. DOESN'T MEAN YOU
ALL HAVE TO TESTIFY. THAT'S
RIGHT. SO, NO SECRET WATCHING
SPORTS IN THE BACK. SO MY
GOODNESS. BUT WE DO WELCOME YOU
TO COMMITTEE. WHAT WE'D LIKE TO
BE ABLE TO DO FIRST IS TAKE CARE
OF SOME OF THE ADMINISTRATIVE
ITEMS. AND WE'D LIKE TO BE ABLE
TO START WITH GOVERNOR
APPOINTEES NOT REQUIRED TO
APPEAR. IF THERE ARE NO
OBJECTIONS, WE'D LIKE TO BE ABLE
TO TAKE UP ITEM 2D. IS THERE A
MOTION I SO GOOD? WELL, IT'S GOT
AT LEAST TWO VOTES. THERE WE GO.
WE GOT A MOTION BY MADAM VICE
CHAIR. MADAM SECRETARY, CAN YOU
PLEASE CALL THE ROLL? MCGUIRE I
MCGUIRE I GROVE I GROVE I EGGMAN
EGGMAN I JONES I JONES I LAIRD I
LAIRD I 5 TO 0. THAT'S FIVE ZERO
VOTE. THE MOTION PASSES. WE'RE
NOW GOING TO BE MOVING ON TO
ITEM NUMBER THREE. BILL
REFERRALS. WE'D LIKE TO BE ABLE
TO SEE IF THERE IS A MOTION
REFERENCE OF BILLS TO
COMMITTEES. WE HAVE A MOTION BY
MADAM VICE CHAIR. THANK YOU SO
MUCH. MADAM SECRETARY, CAN YOU
PLEASE CALL THE ROLL? MCGUIRE
AYE. MCGUIRE. AYE. GROVE. GROVE.
AYE. EGGMAN EGGMAN. AYE. JONES A
JONES. AYE. LAIRD A LAIRD. AYE.
5 TO 0 FIVE ZERO. VOTE THAT
MOTION PASSES. MEMBERS. THERE
ARE SEVERAL FLOOR
ACKNOWLEDGMENTS IN FRONT OF US.
ITEMS FOUR, FIVE, SIX, SEVEN,
AND FOUR, FIVE, SIX, AND SEVEN.
UNDER FLOOR. ACKNOWLEDGMENTS. IS
THERE A MOTION TO APPROVE? WE
HAVE A MOTION BY MADAM VICE
CHAIR. MADAM SECRETARY, CAN YOU
PLEASE CALL THE ROLL? MCGUIRE
AYE. MCGUIRE. AYE. GROVE. GROVE.
AYE. EGGMAN. EGGMAN. AYE. JONES.
AYE JONES. AYE. LAIRD. LAIRD.
AYE. 5 TO 0. THAT'S A50 VOTE.
THAT MEASURE PASSES. THANK YOU
SO MUCH. WE HAVE DISPENSED WITH
THE ADMINISTRATIVE MATTERS FOR
THE DAY. WE ARE NOW GOING TO BE
GETTING INTO THOSE WHO ARE
SCHEDULED TO APPEAR. GOVERNOR
APPOINTEES. AND FIRST AND
FOREMOST, WE'D LIKE TO BE ABLE
TO TAKE UP MISS COMPANY. IF YOU
CAN. PLEASE COME FORWARD.
NORMAN. WELCOME BACK. IT'S GOOD
TO SEE YOU. THANK YOU FOR BEING
HERE. WE'RE GOING TO BE FOCUSING
ON THE BOARD OF STATE AND
COMMUNITY CORRECTIONS, HERE
TODAY. FIRST AND FOREMOST, WE'RE
GOING TO, ALLOW YOU TO BE ABLE
TO PROVIDE 1 TO 2 MINUTES OF
TESTIMONY. WE LOOK FORWARD TO
THAT. DURING THE TIME OF
TESTIMONY, WE WELCOME YOU TO
ACKNOWLEDGE ANY FAMILY OR
FRIENDS WHO MAY BE WITH YOU HERE
TODAY AND OR ARE WATCHING
ONLINE. WHAT WE'LL DO THEN
AFTERWARDS IS THAT WE'LL OPEN IT
UP TO THE COMMITTEE TO BE ABLE
TO ASK ANY QUESTIONS AND PROVIDE
ANY COMMENTS AND HAVE A
CONVERSATION WITH YOU, AND THEN
WE'LL MOVE TOWARDS THE VOTE. THE
FLOOR IS YOURS. AND AGAIN,
WELCOME TO COMMITTEE. THANK YOU
VERY MUCH, GOOD AFTERNOON, MR.
CHAIR, AND MEMBERS OF THE
COMMITTEE. MY NAME IS NORMA
CAMPION, AND I'M VERY PLEASED TO
BE HERE TODAY AND SO HONORED TO
BE JOINED BY SOME OF MY
COLLEAGUES FROM THE
ANTI-RECIDIVISM COALITION WHO
ARE HERE TODAY, AND ALSO SOME OF
THE BPHC STAFF, AS A FORMERLY
INCARCERATED PERSON, I SPENT
NEARLY 20 YEARS IN STATE PRISON
THE MAJORITY OF MY TIME AT THE
CALIFORNIA INSTITUTE FOR WOMEN.
WHILE INCARCERATED, I FIRMLY
BELIEVE THE PROGRAMING I
RECEIVED AT ABSOLUTELY
TRANSFORMED MY LIFE AND THAT OF
MY SON. I WANT TO SPECIFICALLY
THANK GOVERNOR NEWSOM, WHO, BY
APPOINTING A FORMERLY
INCARCERATED WOMAN TO THE BSC,
HAS NOT ONLY DEMONSTRATED
COMPASSION AND GRACE, BUT HAS
ALSO TAKEN A COURAGEOUS STEP
TOWARDS A MORE EQUITABLE STATE.
THIS APPOINTMENT IS NOT JUST A
SYMBOL, THOUGH. IT SERVES AS A
LIGHT OF HOPE FOR COUNTLESS
FORMERLY INCARCERATED PEOPLE WHO
HAVE FACED THE CHALLENGES OF
REENTRY AFTER INCARCERATION. IT
SENDS A POWERFUL MESSAGE NO ONE
SHOULD BE DEFINED SOLELY BY
THEIR PAST MISTAKES, BUT RATHER
BY THEIR POTENTIAL TO CONTRIBUTE
POSITIVELY TO THEIR COMMUNITIES
IN A REAL AND MEANINGFUL WAY. AS
A FORMERLY INCARCERATED WOMAN,
I'M VERY HUMBLED TO BE STANDING
HERE AND ALONG WITH MY COMMUNITY
SUPPORT, I WILL USE MY
EXPERIENCE, JUDGMENT, AND
KNOWLEDGE TO BE A RESPONSIBLE
AND THOUGHTFUL BOARD MEMBER.
ALWAYS THANK YOU. THANK YOU SO
MUCH, MADAM BOARD MEMBER AGAIN,
GRATEFUL. NO, THIS IS INCREDIBLY
PERSONAL TO YOU AND WE TRULY
APPRECIATE YOUR TESTIMONY. LET'S
OPEN IT UP FOR THE COMMITTEE TO
BE ABLE TO SEE IF WE HAVE ANY
QUESTIONS OR COMMENTS FROM
COMMITTEE AT THIS TIME, PLEASE.
MADAM VICE CHAIR, THANK YOU.
THANK YOU, MR. CHAIR, WELCOME,
MISS CAMPION. DID I SAY THAT
RIGHT? YES. THAT WAS GREAT.
OKAY. THANK YOU. THANK YOU FOR
BEING HERE. YOU KNOW, OFTEN WE
HAVE PEOPLE THAT COME THAT ARE
APPOINTED TO THE BOARD THAT HAVE
LIVED EXPERIENCE, WE CALL THEM
LIVED EXPERIENCED EXPERTS. AND
YOU OBVIOUSLY ARE A LIVED
EXPERIENCE EXPERT IN THIS
PARTICULAR FIELD AND BACKGROUND,
I, I JUST HAVE THE ONLY QUESTION
I HAVE FOR YOU IS HAVING
APPLYING THAT AND PROBABLY BEING
THE ONLY ONE ON THE BOARD THAT
IS THAT HAS THAT BACKGROUND. HOW
DOES THAT, GIVE YOU, INFORMATION
ON HOW TO PROCESS YOUR THOUGHTS
AND YOUR WORK ON THE BOARD? LIKE
WHAT? WHAT DO YOU THINK YOUR
BACKGROUND ADDS FOR YOUR WORK ON
THE BOARD? AND I KNOW IT'S AN
OBVIOUS QUESTION. I JUST WANT TO
PUT IT ON THE RECORD AND GO FOR
THERE. SORRY OH, NO. I THINK
IT'S A GREAT QUESTION. AND, LOVE
TALKING ABOUT IT. ACTUALLY, WHEN
I FIRST JOINED THE BOARD, IT WAS
MAINLY LAW ENFORCEMENT, AND THAT
WAS PRETTY INTIMIDATING. AND AS
LIFE IS, YOU BUILD
RELATIONSHIPS, YOU GET TO KNOW
PEOPLE, AND I FEEL VERY STRONGLY
THAT I'M REPRESENTATIVE OF
SOMEONE WHO'S FORMERLY
INCARCERATED. MAY BE THE ONLY
PERSON, THAT PEOPLE IN THE ROOM
WILL EVER GET TO KNOW. AND I
TAKE THAT VERY SERIOUSLY. AND I
THINK THINGS THROUGH AND I THINK
ABOUT WHAT THE PEOPLE
INCARCERATED WILL BE GOING
THROUGH SHOULD SOMETHING PASS OR
SHOULD A REGULATION BE IN PLACE,
I KNOW FIRSTHAND WHAT IT'S LIKE
TO MAKE A MISTAKE AND WANT TO
COME BACK FROM THAT MISTAKE. AND
ALSO KNOWING WHAT IT'S LIKE TO
VISIT YOUR LOVED ONES AND TO
HAVE THOSE TOUGH CONVERSATIONS,
CONVERSATIONS AND NEEDING THAT
SUPPORT AS WELL. SO I THINK
THOSE ARE ALL THE THINGS THAT
REALLY GUIDE ME WHEN I SIT ON
THE BSC. THANK YOU. NOT, NOT
EVER BEEN INCARCERATED, BUT
JUVENILE HALL KID. RIGHT? SO I
WAS A JUVENILE HALL KID AND I
KNOW SHOCKER. OKAY YEAH. YOUR
COLLEAGUES DO NOT SEEM SURPRISED
. OKAY SO WHEN I HAVE THESE,
WHEN I HAVE THESE YOUTH
OFFENDERS AND YOUTH PEOPLE COME
IN FOR ME, IT'S LIKE. YEAH, I
USED TO SIT WHERE YOU SIT. I'VE
BEEN THERE. OH, I LOVE THAT. I
LOVE IT, YOU KNOW, AND I JUST
THE REASON WHY I ASK YOU THAT
QUESTION IS BECAUSE, LIKE, I
SPEAK AT GRIZZLY ACADEMY OR I'LL
SPEAK TO YOUTH, YOU KNOW,
INCARCERATED YOUTH OR, YOU KNOW,
JUVENILE HALL YOUTH OR, YOU
KNOW, WE DON'T HAVE THAT ANYMORE
USUALLY. BUT, AND THEY'RE LIKE,
YOU'LL NEVER UNDERSTAND WHAT I
WENT THROUGH. I SAID, OH, YEAH.
AND I JUST THINK THAT HAVING I'M
NOT SAYING THAT EVERYBODY SHOULD
HAVE IT. I'M NOT AT ALL, BUT I'M
JUST SAYING THAT HAVING THAT
EXPERIENCE GIVES YOU A DIFFERENT
PERSPECTIVE. AND I JUST WANTED
TO KNOW IF THAT WAS YOUR
THOUGHTS AS WELL. AND I KNOW MY
COLLEAGUES ARE NOT SHOCKED. THEY
JUDGE ME EVERY DAY. SO, BUT
THANK YOU FOR THAT QUESTION. I
OR THE ANSWER, I APPRECIATE YOUR
, PARTICIPATION IN THIS PROCESS.
THANK YOU. AND I APPRECIATE YOU
AND YOUR SHARE. THANK YOU. YEAH,
PLEASE. HEY, WE'RE GOING TO GO
TO SENATOR EGGMAN AND THEN
SENATOR LAIRD. WHO ARE YOU
SAYING NO TO? I'M WORRIED I'M
GOING TO COMMENT ABOUT IT. SO
THANK YOU. AND THANK YOU FOR
BEING HERE TODAY AND TALKING
WITH ME YESTERDAY, CAN YOU TALK
A LITTLE BIT ABOUT, SINCE, YOU
KNOW, YOU TALK ABOUT FORMERLY
INCARCERATED IN PRISON AND NOW
YOU'RE DOING THE OVERVIEW OF THE
COUNTY JAILS AND AS WE AS WE SEE
RECIDIVISM AT THE COUNTY JAIL
LEVEL, THAT REVOLVING DOOR THAT
EVENTUALLY LED ENDS UP PEOPLE IN
PRISON. HOW DO YOU SEE YOUR ROLE
OR THE JAILS ROLE IN BEING ABLE
TO HELP BREAK THAT CYCLE? I, I
THINK IT IS A LITTLE BIT
DIFFERENT. THIS IS MY
EXPERIENCE. THE JAIL IS A
SHORTER TIME SPAN FOR PEOPLE, SO
A LOT OF TIMES PEOPLE ARE NEWLY
SOBER OR THEY'RE FILLED WITH
TRAUMA, THEY'RE FOCUSED ON
FIGHTING THEIR CASE. THEY'RE
TRYING TO WIN THAT, YOU KNOW,
WIN THEIR CASE OR GET, YOU KNOW,
AS MUCH TIME TAKEN OFF AS
POSSIBLE. ONCE YOU GET TO
PRISON, IT'S MORE OF A SETTLED
SPACE WHERE YOU'RE ABLE TO
REALLY DIVE INTO, IF YOU SO
DESIRE, DIVE INTO WHAT HAPPENED
IN MY LIFE, HOW DID I GET HERE?
AND THERE'S A LONGER SPAN OF
TIME WHERE YOU'RE ABLE TO REALLY
FOCUS ON YOURSELF. I DON'T KNOW
HOW MANY PROGRAMS THERE ARE IN
THE COUNTY JAIL. I'M FROM LOS
ANGELES, AND THERE'S I KNOW
THERE'S NOT A LOT OF VOCATION
THERE. THERE ARE SOME ORGS THAT
GO IN. SO I THINK THAT THAT
THAT'S MAYBE A BIGGER
CONVERSATION. THÀNH ABOUT THE
PROGRAMING THAT EXISTS AT THAT
LOWER LEVEL OF THE COUNTY. AND
DO YOU SEE THAT AS AN AREA WHERE
WE COULD POTENTIALLY GROW AND
THEN STOP? YES ABSOLUTELY. THAT
IS THAT'S A GREAT PLACE. AND I
THINK ALSO, IN LINE WITH THAT IS
WITH THE JUVENILES ALSO, AND TO
REALLY FLOOD THE JUVENILE HALLS
AND THE CAMPS WITH PROGRAMING
AND OPPORTUNITY AND HOPE FOR THE
YOUNG PEOPLE SO THAT THEY DO SEE
ANOTHER WAY OF LIFE AND THEY
HAVE HOPE. AND DO YOU SEE ANY
POSSIBILITY THROUGH YOUR ROLE OF
, OF HELPING THAT, THAT THAT
TRANSFORMATION BE REALIZED?
DODD. OH, I THINK SO. I THINK,
TODAY, THOSE, THOSE TOUGH
CONVERSATIONS THAT WE'RE HAVING
ABOUT SUITABILITY AT THE BSC, IT
SHINES LIGHT CONTINUOUSLY ON THE
LACK OF PROGRAMING FOR THE
YOUTH. I KNOW THEY'RE WORKING
REALLY HARD TO GET THOSE. AND,
IT'S REALLY NECESSARY FOR THE,
THE PROGRAMS AND THE COLLEGE
PROGRAMS AND THE VOCATIONAL
TRADES, ESPECIALLY FOR THE
YOUTH. I WOULD I WOULD
ESPECIALLY FOR THE YOUTH. RIGHT.
OKAY. THANK YOU. THANK YOU SO
MUCH. SENATOR, PLEASE, SENATOR,
THANK YOU. I WANTED TO FOLLOW UP
BECAUSE I WAS GOING TO ASK ABOUT
THE YOUTH PART AND THE THING
ABOUT IT IS, IS THERE HAS BEEN A
TRANSFORMATION IN THE LAST 15 OR
20 YEARS ON JUVENILE HALLS WHERE
THEY USED TO BE, JUST HIGH
NUMBER OF PEOPLE THERE. IN SOME
WAYS, WAREHOUSING. AND THERE HAS
BEEN THIS TRANSITION IN THE LAST
DECADE OR TWO OF ONLY HAVING
PEOPLE THAT REALLY ARE A RISK OR
AT RISK. AND THE NUMBERS HAVE
DROPPED. AND I NOTED IN YOUR,
ANSWERS THAT ONE OF YOUR MAJOR
CONCERNS WAS TO DEAL WITH
JUVENILE HALLS AND YOUTH IN IN
WHAT YOU'RE DOING HERE. AND SO I
WAS GOING TO ASK HOW YOU
APPROACH THAT, GIVEN THE FACT
THAT THERE ARE THESE CHANGES
GOING ON OR HAVE GONE ON, AND IT
MEANS THAT THERE'S A DIFFERENT
LEVEL OF PEOPLE THAT ARE IN
JUVENILE HALL JUST SORT OF
INTENSITY AS OPPOSED TO WHEN IT
WAS THE NUMBERS WERE HUGE. SO
HOW DO YOU DEAL WITH THAT? WHAT
DO YOU FOCUS ON? AND IN SOME
WAYS, THIS TURNS OUT TO BE A
LITTLE BIT OF A FOLLOW UP TO
SENATOR EGGMAN'S QUESTION. BUT I
WAS CURIOUS TO HEAR YOU TALK
ABOUT THAT. DO YOU MEAN THE CITY
VERSUS THE DJ? WITH THE DJ
CLOSURE AND CREATING OF THERE'S
THAT, BUT IN COUNTY JUVENILE
HALLS, THERE'S BEEN THIS WHOLE
SCALE CHANGE IN SORT OF WHO'S
THERE AS WELL. SO YOU'VE GOT THE
CHANGES ON BOTH SIDES GOING AND
IT IT SORT OF MEANS THERE'S A
DIFFERENT POPULATION AND A
DIFFERENT LEVEL OF PROGRAMING.
AND IN SOME WAYS IT'S SOME OF
THE PEOPLE THAT ARE THE HARDEST
TO REACH THAT ARE LEFT. AND YOU
MENTIONED THAT THIS IS A
PRIORITY FOR YOU. SO I'M JUST
LOOKING TO SEE WHAT YOU THINK
YOU CAN DO OR WHAT YOUR FOCUS
WOULD BE IF YOU WERE TO DO WHAT
YOU SAID OF FOCUSING ON IT, WHAT
DOES THAT MEAN? I THINK FOR THE
JUVENILE FACILITIES, THE ONE
PROGRAM THAT REALLY GIVES ME
HOPE IS THE CREDIBLE MESSENGER
PROGRAM, WHERE PEOPLE WHO ARE
FORMERLY INCARCERATED OR SYSTEM
IMPACTED GO BACK. AND AS A
LEADER IN THEIR COMMUNITY. BUT
HAVING DONE A FULL TURNAROUND OF
THEIR LIVES, BUT COMING FROM THE
SAME PLACE AS THE YOUTH, THOSE
PEOPLE ARE NOW IN PLACE IN BARRY
J. IN THE CITY AND ALSO AT LOS
PADRINOS AT MORE OF THE
PREDISPOSED, FACILITY. AND I
THINK BY BRINGING FOLKS IN LIKE
THAT TO WORK WITH PROBATION, I
THINK THAT'S THE BEST SNAPSHOT
OF COMMUNITY WORK THAT WE CAN
REALLY HOPE FOR. SO I APPRECIATE
THAT. I RAN A NONPROFIT 30 YEARS
AGO, Þ, AND THAT'S AND WE WERE
DEALING WITH HIV TRANSMISSION
AMONG YOUTH, AND THEY DIDN'T
LEAVE ANYBODY. AND WE GOT A
GRANT AND DID A STUDY THAT THE
PEOPLE THEY BELIEVED WERE YOUNG
AND SO ACTUALLY, IF YOU EDUCATED
5 OR 10% OF THE PEOPLE YOU WERE
ACTUALLY EDUCATING MOST KIDS
BECAUSE OF WHO THEY LISTEN TO OR
HOW IT HAPPENED. SO IT SEEMS
THERE'S ANOTHER THING THAT WAS
IN THE PAPERS THAT SORT OF COMES
UP IN THIS, AND THAT'S WHAT IS
THE CONFLICT BETWEEN
OCCASIONALLY YOU'RE DEALING WITH
INTERESTS OF LOCAL GOVERNMENT
AND INTERESTS OF STATE
GOVERNMENT, AND THEY'RE BOTH
RUNNING PROGRAMS THAT YOU HAVE
SOME MEASURE OF INTERACTION
WITH, AND YET THEY'RE IN
CONFLICT. HAVE YOU EXPERIENCED
THAT AND HAD TO TRY TO NAVIGATE
THAT AT THIS POINT? I THINK AT
MY DAY JOB, MY DAY JOB, NOT THE
FCC, BUT IN THE DAY JOB OF BEING
A FACILITATOR HERE AND GOING
INSIDE THE INSTITUTIONS. I THINK
RECENTLY THERE'S BEEN A LOT OF
OVERLAP AND PEOPLE WITH GOOD
INTENTIONS THAT BELIEVE THEIR
PROGRAM IS, YOU KNOW, IS THE
BEST. AND I THINK IT'S CAREFULLY
WORKING TOGETHER. THAT IS REALLY
THE BEST SOLUTION FOR THAT, AND
REALLY LISTENING TO THE YOUTH,
WHAT THE YOUTH WANT, SOMETIMES
THEY WANT THINGS THAT WE, WE
THINK THAT THEY SHOULD HAVE. FOR
INSTANCE, WE THINK THEY SHOULD
HAVE FINANCIAL GOAL SETTING.
THAT'S WHAT WE WOULD LIKE. AND
THEY RESPOND, CAN YOU MAKE THAT
FUN? CAN WE DO THAT OUTDOORS?
CAN WE DO THAT WITH A BASKETBALL
, SO I THINK THOSE THINGS ARE
THINGS THAT WE HAVE TO TAKE THAT
FEEDBACK. WE HAVE TO BE OPEN TO
THAT FEEDBACK. IF WE'RE REALLY,
TRULY LISTENING TO THE YOUTH AND
WE REALLY WANT TO SEE CHANGE, WE
HAVE TO BE INNOVATIVE AND THINK
OUTSIDE THE BOX OF WHAT CAN
REACH THEM. OKAY, I REALLY
APPRECIATE THAT. AND I ALSO JUST
APPRECIATE THE SPECIAL VIEW YOU
BRING TO THIS. AND I APPRECIATED
YOUR STATEMENT ABOUT BUILDING
RELATIONSHIPS AND PEOPLE SEEING
IN YOU SOMETHING THEY MIGHT NOT
SEE ANY OTHER WAY. SO I WOULD
JUST SAY THANK YOU FOR YOUR
SERVICE AND THANK YOU FOR BEING
THAT PERSON IN THOSE SITUATIONS.
I APPRECIATE IT. AND BARRING
SOME BIZARRE TESTIMONY, WHICH I
DON'T THINK IS GOING TO HAPPEN,
AND WE'LL LOOK FORWARD TO VOTING
FOR YOUR CONFIRMATION. THANK YOU
SO MUCH. THANK YOU SO MUCH,
SENATOR LARRY, LET'S GO TO
SENATOR JONES, PLEASE. THANK
YOU. I JUST A COUPLE OF COMMENTS
AND A COUPLE AND MAYBE A
QUESTION OR TWO. I JUST WANT TO,
SAY CONGRATULATIONS, ÓRDENES.
AND, RESPECTFULLY APPRECIATE
THAT YOU'VE BEEN ABLE TO
COMPLETE YOUR SENTENCE AND, GET
OUT OF PRISON AND TURN YOURSELF
AROUND AND THEN BECOME DEEPLY
INVOLVED WITH ARC, WHICH I
REALLY GREATLY, APPRECIATE. I'VE
SHARED BEFORE IN THIS COMMITTEE
THAT MY BROTHER IN LAW WAS NOT
SO FORTUNATE TO BE ABLE TO GET
OUT AND HAVE THOSE SAME
OPPORTUNITIES TO TURN HIS LIFE
AROUND. SO, I THINK THAT YOUR
EXPERIENCE ON THIS BOARD IS
GOING TO BE IMPORTANT. AND
VALUABLE TO WHAT WE'RE DOING,
THE QUESTION IS, IN YOUR
BACKGROUND A COUPLE OF TIMES, SB
519 COME UP AND THAT'S THE
SENATE BILL THAT ALLOWS MORE
AUTHORITY FOR THE BCC TO GO INTO
THE LOCAL JAILS AND, AND HAVE
SOME MORE OVERSIGHT ON VISITS
AND UNANNOUNCED VISITS AND
THINGS LIKE THAT. AND YOU SEEM
TO BE VERY, SUPPORTIVE OF THAT
AND OPEN TO THAT. I DIDN'T
SUPPORT THE BILL, AND I DON'T
REMEMBER THE SPECIFICS OF THE
BILL, SO THAT I DON'T THAT'S NOT
WHAT'S IMPORTANT TODAY. WHAT'S
IMPORTANT TODAY IS I WOULD LIKE
FOR YOU TO KIND OF SHARE WITH US
WHAT THAT SPECIFIC PIECE OF
LEGISLATION, WHY YOU'RE EXCITED
ABOUT THAT, WHAT YOU INTEND, HOW
HOW TO USE IT. AND, YOU KNOW,
THE ISSUES THAT SB 519 SOUGHT TO
ADDRESS HAVEN'T GOTTEN BETTER.
AND I WILL SPECIFICALLY POINT
OUT SAN DIEGO AS ONE OF THOSE
EXAMPLES, BUT I'M SURE THERE'S
OTHER EXAMPLES AROUND THE STATE
THAT YOU CAN MAYBE POINT TO. AND
SO IF YOU COULD JUST WALK US
THROUGH THAT, I'D APPRECIATE IT.
OKAY. THANK YOU. THANK YOU FOR
THAT, THE SB 519. AND THEN I
WOULD LIKE TO HEAR FROM YOU ALSO
AFTER ABOUT WHAT WHAT IT IS
ABOUT THE BILL THAT YOU FELT
MAYBE COULD BE TWEAKED A LITTLE
BIT, JUST JUST KIND OF CURIOUS,
BUT, THAT'S A FAIR QUESTION TO
GO BACK AND LOOK AT IT. OKAY.
OKAY. WELL, I'M GOING TO TELL
YOU A LITTLE BIT ABOUT IT, SO IT
WAS IT'S, IT WAS, SO GRATEFUL TO
SENATOR ATKINS FOR THIS, THIS
BILL. AND I THINK WHAT IT WILL
DO WILL PROVIDE A SNAPSHOT OF
THE DEATHS IN CUSTODY ACROSS
CALIFORNIA. AND THOSE WILL BE
AVAILABLE ON THE BACK, I KNOW
THAT THERE IS A DIRECTOR COMING
TO THE STAFF AT THE BACK. MAYBE
IN JULY, MAYBE AROUND THEN
SOMETIME, AND I'M SORRY, THAT
WAS ACTUALLY I IN MY NOTES, TOO.
WILL YOU HAVE A SAY IN WHO THAT
DIRECTOR IS? I BELIEVE THAT
THAT'S A GOVERNOR APPOINTEE. YES
YEAH, YEAH, YOU'LL HAVE A SAY,
BUT YOU CAN CALL ME ALSO IF YOU
WANT. I'M JUST SAYING, OKAY. ALL
RIGHT, ALL RIGHT. FAIR, FAIR.
BUT, HOPEFULLY THIS BY HAVING
THAT POSITION ON THE BACK THAT
FAMILIES WILL HAVE A PLACE TO,
TO REACH OUT TO, TO TALK WITH
AND, AND I'M THINKING THAT IF WE
HAVE IT ON THE WEBSITE THAT THAT
WE'LL BE ABLE TO MAYBE SEE SOME
TRENDS THAT MAY BE PREVIOUSLY WE
WEREN'T ABLE TO SEE. SO THOSE
THOSE ARE SOME OF THE THINGS I
THINK ABOUT WHEN I THINK ABOUT
THAT BILL IN THAT POSITION.
THANK YOU. AND I APPRECIATE
THAT. AND I WILL GO BACK AND
LOOK AT IT BECAUSE IT IS QUITE
POSSIBLE THAT GIVEN THE HISTORY
BETWEEN THEN AND NOW, IT MIGHT
BE SOMETHING I WOULD SUPPORT. SO
I'M. YEAH, WE'LL MORE THAN HAPPY
TO HAVE THAT FOLLOW UP
CONVERSATION AND, AND GET TO
SPEND SOME MORE TIME WITH YOU ON
THAT. THAT'D BE GREAT. OKAY.
APPRECIATE YOU. THANK YOU. THANK
YOU SO MUCH. ROBUST CONVERSATION
HERE WITH THE COMMITTEE. THANK
YOU. WHAT WE'D LIKE TO BE ABLE
TO DO NOW IS OPEN IT UP TO EACH
OF THOSE WHO ARE HERE IN THE
ROOM. FIRST AND FOREMOST, WE
WILL BE OPENING IT UP FOR THOSE
WHO ARE IN SUPPORT OF MADAM
BOARD MEMBER, IF YOU COULD
PLEASE STEP FORWARD TO THE
PODIUM. WE RESPECTFULLY REQUEST
THAT YOU GIVE US YOUR FIRST AND
LAST NAME AND THE ORGANIZATION,
WHO YOU'RE WITH, AND YOU WILL
HAVE 30S FOR TESTIMONY AND JUST.
I AM GUILTY OF THIS AND PROBABLY
ONE OF THE WORST OFFENDERS. JUST
A REMINDER, THE COMMITTEE AND TO
ALL THOSE WHO ARE UP AT THE DAIS
THAT WE TALK OVER OURSELVES, IT
IS DIFFICULT TO BE ABLE TO
CAPTURE, EACH OF THE WORDS FOR
OUR MADAM COURT REPORTER. SO I
JUST WANT TO REMIND HER. AND
THAT'S A REMINDER FOR MYSELF AS
WELL. SIR. IT'S GOOD TO SEE YOU
BACK AGAIN IN COMMITTEE. THE
FLOOR DEFINITELY. THANK YOU. HI,
EVERYONE. MY NAME IS CHRISTOPHER
RAMIREZ. I'M A LIFE COACH WITH
THE ANTI-RACISM COALITION AND
I'M HERE IN SUPPORT OF NORMA.
THANK YOU. THANK YOU SO MUCH.
APPRECIATE YOU BEING HERE. GOOD
AFTERNOON. GOOD AFTERNOON.
PEACE, POWER AND POSITIVITY. I
AM SHARON GAGE. I AM A LIFE
COACH WITH THE ANTI-RECIDIVISM
COALITION IN TOTAL AND FULL
SUPPORT. I'M ABOUT TO CRY, TOLD
IN FULL SUPPORT OF NORMA. THANK
YOU SO MUCH, SIR. APPRECIATE.
GOOD AFTERNOON. GREETINGS AND
GOOD AFTERNOON, CHAIR AND
MEMBERS, CHRIS LAWSON, POLICY
AND COMMUNITY ORGANIZING MANAGER
IN THE SACRAMENTO OFFICE OF ARC,
THE ANTI-RECIDIVISM COALITION. I
COULD NOT BE IN STRONGER SUPPORT
OF NORMA. SHE IS AN AMAZING,
AMAZING, AMAZING PERSON AND
CONTRIBUTOR TO THIS EFFORT.
STRONG SUPPORT. THANK YOU. THANK
YOU SO MUCH, CHRIS. GOOD MORNING
ALL. MY NAME IS SEAN ROBINSON
AND I AM IN FULL SUPPORT OF
NORMA COPELAND. THANK YOU SO
MUCH, MR. ROBINSON. THANKS FOR
BEING HERE. GOOD AFTERNOON. GOOD
AFTERNOON. MY NAME IS JUBAL
MCDUFFIE. I'M A REGIONAL MANAGER
FOR THE ANTI-RECIDIVISM
COALITION, AND I AM 1,000%
SUPPORTIVE OF MISS NORMA
COPELAND. THANK YOU SO MUCH,
MISS MCDUFF. APPRECIATE IT. GOOD
AFTERNOON. GOOD AFTERNOON, I'M
JOHN JARVIE, A LIFE COACH WITH
THE ANTI-RECIDIVISM COALITION. I
WHOLEHEARTEDLY SUPPORT MISS
COPELAND ON THIS. THANK YOU.
THANK YOU SO MUCH, MR. CHAIR.
WELCOME BACK. IT'S GOOD TO SEE
YOU. HELLO. MY NAME IS JACK
CASTELLO. I AM A MEMBER OF THE
ANTI-RECIDIVISM COALITION AND I
AM IN STRONG SUPPORT OF MISS
NORMA JEAN. THANK YOU SO MUCH
FOR YOUR COMMENT, I APPRECIATE
IT. GOOD AFTERNOON SIR. GOOD
AFTERNOON. MY NAME IS TREMAYNE
AMOS. I AM A PINE GROVE. LIFE
COACH AND I AM IN SUPPORT OF
MISS NORMA COPELAND. GRATEFUL
FOR YOUR TESTIMONY. THANK YOU.
GOOD AFTERNOON. GOOD AFTERNOON.
BOARD, MY NAME IS JUNIOR WITH
THE ANTI-RECIDIVISM COALITION.
AND I STRONGLY SUPPORT NORMA
JEAN. THANK YOU FOR BEING HERE.
GOOD AFTERNOON. GOOD AFTERNOON
EVERYBODY. MY NAME IS JOSEPH
OSORIO. I'M THE ASSOCIATE
DIRECTOR WITH THE
ANTI-RECIDIVISM COALITION HERE
IN SACRAMENTO. ALSO A REALLY
GOOD FRIEND OF NORMA CUMPIAN FOR
NOW, FIVE YEARS. SHE'S MY
MENTOR, GOOD FRIEND, AND I
STRONGLY SUPPORT AND JUST WANTED
TO POINT SOMETHING OUT REALLY
QUICK, IT WAS ASKED HOW SHE
COULD KEEP THE SEPARATION
BETWEEN THE WORK THAT SHE DOES
AND, SORT OF THE JOBS OF THE
BSC, AND I APPRECIATE THE ANSWER
WITH IT'S NOT ABOUT WHAT I WANT
OR WHAT ANY OTHER AGENCY WANTS,
BUT MORE ABOUT WHAT THE KIDS
ARE, ARE LOOKING TO GET. AND I
THINK THAT SPEAKS VOLUMES OF THE
WORK THAT SHE DOES. SO
CONGRATULATIONS AND I HOPE YOU
GET IT. THANK YOU. THANK YOU SO
MUCH. APPRECIATE THAT. WE'RE
GOING TO DO A LAST CALL. LAST
CALL FOR THOSE IN SUPPORT. IF
YOU COULD PLEASE COME FORWARD AT
THIS TIME. LAST CALL. WE'RE NOW
GOING TO TURN IT OVER TO THOSE
WHO MAY BE OPPOSED. ANYONE IN
OPPOSITION. IF YOU COULD PLEASE
STEP FORWARD TO THE DAIS AT THIS
TIME, WE'RE GOING TO DO A LAST
CALL FOR OPPOSITION. IF YOU
COULD PLEASE COME FORWARD
HEARING, SEEING NO ONE STAND,
WE'RE GOING TO BRING IT BACK TO
COMMITTEE TO BE ABLE TO SEE IF
THERE'S ANY ADDITIONAL
CONVERSATION. AND WE ALSO WILL
WELCOME A MOTION BY ANY OF THE
MEMBERS. SO MOVED. I MAKE A
MOTION TO MOVE ON TO THE FULL
VOTE OF THE SENATE FLOOR. THANK
YOU SO MUCH, MADAM VICE CHAIR.
WE HAVE A MOTION IN SUPPORT,
MADAM SECRETARY, CAN YOU PLEASE
CALL THE ROLL MCGUIRE A MCGUIRE?
AYE. GROVE GROVE. AYE. EGGMAN.
EGGMAN. AYE. JONES JONES. AYE.
LAIRD A LAIRD. AYE. 5 TO 0 FIVE
ZERO VOTE. THAT MOTION PASSES.
CONGRATULATIONS MADAM BOARD
MEMBER. NEXT UP WILL BE THE
SENATE FLOOR. THANK YOU SO MUCH.
THANK YOU. THANK YOU FOR YOUR
TESTIMONY. VERY GRATEFUL. WE'RE
GOING TO TAKE A 62ND RECESS.
62ND RECESS, MISS CAMPIONE HAS
BROUGHT HER FAN CLUB, AND, IT IS
AMAZING. IT IS SO GOOD TO BE
ABLE TO SEE 60S WILL ALLOW FOLKS
TO BE ABLE TO COME IN, COME OUT,
AND WE'RE GOING TO WELCOME
MISTER DIRECTOR. IN THE MEANTIME
, IF YOU CAN, PLEASE STEP
FORWARD TO THE TABLE. THANK YOU
SO MUCH. 60S.
ALL RIGHT. WE'RE GOING TO BRING
YOU BACK TO COMMITTEE. AT THIS
TIME, LADIES AND GENTLEMEN.
COMMITTEE IN FRONT OF US IS. WE
HAVE THE POTENTIAL APPOINTMENT
OF JOSEPH MCCULLOUGH. MR.
MCCULLOUGH, YOU HAVE SPENT YOUR
LIFE, YOUR CAREER WITH ABC
ALCOHOL BEVERAGE CONTROL. NOW IN
FRONT OF US AS DIRECTOR OF THE
DEPARTMENT. MR. MCCULLOUGH, WE'D
LIKE TO BE ABLE TO TAKE CARE OF
SOME HOUSEKEEPING HERE. WE
WELCOME YOU. FIRST AND FOREMOST,
THANK YOU FOR YOUR COMMITMENT TO
THE PEOPLE OF CALIFORNIA, YOU
WILL BE GIVEN 1 TO 2 MINUTES.
I'LL GIVE YOU 32ND HEADS UP WHEN
YOU GET CLOSE TO THAT TWO
MINUTES, IN YOUR OPENING
STATEMENT, OBVIOUSLY WELCOME.
ANY FAMILY FRIENDS WHO ARE HERE
WHO MAY BE WATCHING, THAT'S
ALWAYS FUN TO BE ABLE TO SEE.
AND THEN WHAT WE'LL DO IS WE'LL
BRING IT BACK TO COMMITTEE, HAVE
A CONVERSATION, PROVIDE COMMENTS
AND OFFER ANY QUESTIONS. MR.
DIRECTOR, WE WELCOME YOU. THE
FLOOR IS YOURS. THANK YOU, THANK
YOU. GOOD AFTERNOON, HONORABLE
CHAIR AND MEMBERS OF THE
COMMITTEE, THANK YOU FOR THE
OPPORTUNITY TO APPEAR IN FRONT
OF YOU TODAY. I'D LIKE TO TAKE A
MOMENT TO RECOGNIZE MY WIFE,
MICHELLE, AND OUR TWO SONS,
WYATT AND LOGAN, WHO ARE HERE TO
SUPPORT ME. ALSO PRESENT IS
ABC'S CHIEF DEPUTY DIRECTOR,
FRANCISCO ROBLES, AS WELL AS
OTHER ABC STAFF. I AM TRULY
HONORED TO BE SITTING BEFORE
YOU. I'VE SPENT MY ENTIRE PUBLIC
SERVICE CAREER WITH ABC,
STARTING WITH OUR SAN FRANCISCO
OFFICE IN 2001. I WOULD NEVER
HAVE IMAGINED WHEN I FIRST
STARTED WITH THE DEPARTMENT,
THAT I WOULD BE SITTING HERE
TODAY SEEKING THE CONFIRMATION
OF MY APPOINTMENT AS DIRECTOR.
AS DIRECTOR, I'M COMMITTED TO
PROMOTING PUBLIC SAFETY,
FOSTERING ECONOMIC DEVELOPMENT,
AND WORKING TO REGULATE THE
INDUSTRY IN A FAIR AND IMPARTIAL
MANNER. I BELIEVE THAT ABC
SHOULD BE PROACTIVE IN SERVING
THE PEOPLE OF THIS GREAT STATE.
EARLY IN MY CAREER, I LEARNED
THAT COLLABORATION WITH
STAKEHOLDERS IS A POWERFUL TOOL
IN REDUCING ALCOHOL RELATED
VIOLATIONS. THIS INCLUDES
REGULAR AND ACTIVE PARTNERSHIPS
WITH COMMUNITY ORGANIZATIONS,
LOCAL LAW ENFORCEMENT AGENCIES,
LOCAL GOVERNING BODIES, ALCOHOL
POLICY GROUPS, LICENSEES, AND
TRADE ASSOCIATIONS. I PLAN TO
HARNESS THESE RELATIONSHIPS TO
HELP KEEP OUR COMMUNITIES SAFE
WHILE PRIORITIZING VOLUNTARY
COMPLIANCE OVER DISCIPLINE. I
ALSO BELIEVE ABC CAN BETTER
SERVE OUR LICENSEES BY
HARNESSING TECHNOLOGY TO IMPROVE
OUR OPERATIONS. TO THAT END, I
AM FOCUSED ON BUSINESS
MODERNIZATION EFFORTS THAT
INCLUDE ACCEPTING ONLINE
APPLICATIONS, RENEWALS, AND
REGULATORY REPORTS FROM LICENSED
BUSINESSES. OUR LICENSEES ARE
CONSTANTLY INNOVATING AND ABC
SHOULD Tð. IT HAS BEEN A
PRIVILEGE TO SERVE AS DIRECTOR
SINCE SEPTEMBER OF LAST YEAR.
I'M TRULY PASSIONATE ABOUT THE
DEPARTMENT'S MISSION PROGRAMS,
EMPLOYEES AND SERVICE TO OUR
STAKEHOLDERS AND THE PUBLIC. I'M
THANKFUL TO GOVERNOR NEWSOM FOR
THIS APPOINTMENT AND DEEPLY
HUMBLED TO BE LEADING SUCH A
GREAT DEPARTMENT. THANK YOU FOR
YOUR CONSIDERATION AND I'M HAPPY
TO ANSWER ANY QUESTIONS. THANK
YOU SO MUCH, MR. DIRECTOR. WE'RE
GRATEFUL FOR THAT. WE'RE GOING
TO OPEN IT UP FOR QUESTIONS,
COMMENTS FROM THE COMMITTEE.
MADAM VICE CHAIR, WHY DON'T YOU
KICK US OFF? THANK YOU, MR.
CHAIR. THANK YOU, MR.
MCCULLOUGH, FOR BEING HERE
TODAY. I JUST WANTED TO KNOW IF
YOU COULD TALK TO US A LITTLE
BIT ABOUT SOME OF THE PROGRAMS
THAT WORK BEST WHEN YOU'RE
TRYING TO DETER YOUTH? FROM
BEING ABLE TO HAVE, ACCESS TO
ALCOHOL. AND WHAT ARE SOME OF
THE GREATEST CHALLENGES THAT YOU
FACE REGARDING THAT? BECAUSE I
KNOW THAT'S A BIG ISSUE. WE WANT
TO MAKE SURE THAT THEY HAVE A,
YOU KNOW, A THEY STAY AWAY FROM
IT, YOU KNOW, OBVIOUSLY. AND
THERE'S NOT AN ADDICTION THAT
DEVELOPS LATER. BUT JUST OUT OF
CURIOSITY, WHAT METHODS ARE YOU
USING TO MAKE THAT WORK? SO WE
HAVE SEVERAL METHODS THAT WE USE
THE MOST PROBABLY VISIBLE AND
BEST KNOWN IS OUR MINOR DECOY
PROGRAM THAT'S BEEN IN EXISTENCE
FOR ABOUT 30 YEARS NOW. AND WE
ALSO PARTNER WITH LOCAL LAW
ENFORCEMENT TO ADMINISTER THAT
PROGRAM. SO THROUGH OUR ALCOHOL
POLICING PARTNERSHIP GRANTS,
WE'VE GIVEN 48 GRANTS TO LOCAL
LAW ENFORCEMENT AGENCIES
THROUGHOUT THE STATE, TO HELP BE
A FORCE MULTIPLIER IN RUNNING
THAT PROGRAM. WE ALSO HAVE
OFFERED, I BELIEVE IT'S 26
GRANTS WITH FUNDING FROM THE
OFFICE OF TRAFFIC SAFETY TO ALSO
RUN SIMILAR PROGRAMS TO LOCAL
LAW ENFORCEMENT AGENCIES, THAT
REALLY FOCUSES ON THE SUPPLY
SIDE OF THE EQUATION. WE ALSO
HAVE PROGRAMS THAT DEAL WITH,
NOT NECESSARILY THE LICENSEES
THEMSELVES, BUT JUST THE GENERAL
PUBLIC WHO MAY BE WILLING TO TRY
TO FURNISH ALCOHOL TO MINORS. SO
THAT'S OUR SHOULDER TAP PROGRAM
THAT WE UTILIZE, SIMILAR TO THE
MINOR DECOY PROGRAM AND THAT WE
UTILIZE UNDERAGE DECOYS, BUT
WE'RE REALLY FOCUSING ON TRYING
TO GET THE MESSAGE OUT TO THE
GENERAL PUBLIC NOT TO FURNISH
ALCOHOL TO MINORS. I THINK IT'S
IMPORTANT TO NOTE THAT WE REALLY
TRY TO DO A LOT OF PUBLICITY
PRIOR TO RUNNING THESE, THESE
OPERATIONS SO THAT WE CAN
AMPLIFY THE MESSAGE AND LET THE
GENERAL PUBLIC KNOW THAT IT'S
NOT OKAY TO GIVE ALCOHOL TO KIDS
. THANK YOU. THANK YOU, SIR.
THANK YOU, MR. CHAIR. THANK YOU
SO MUCH. LET'S GO TO SENATOR
JONES. I JUST WANTED TO FOLLOW
UP ON THAT. AND IF YOU CAN
ANSWER THAT SAME QUESTION
REGARDING VAPE AND TOBACCO
PRODUCTS, BUT I THINK MORE
IMPORTANTLY, THE VAPING. SO ABC
DOESN'T REGULATE VAPING OR
TOBACCO PRODUCTS, BUT WE. THANK
YOU SO MUCH. THANK YOU SIR,
PLEASE, CAN YOU TALK A LITTLE
BIT ABOUT I WAS A FORMER CITY
COUNCIL MEMBER, ABOUT YOUR WORK
WITH LOCAL MUNICIPALITIES,
BECAUSE THAT'S ALWAYS A HOT
TOPIC. EITHER SOMEBODY WANTING
AN ABC LICENSE OR SOMEBODY
ABUSING AN ABC LICENSE, SO CAN
YOU TALK? AND IT'S A HOT ISSUE.
I CAN TELL YOU THERE, SO CAN YOU
TALK A LITTLE BIT ABOUT THAT?
YEAH. SO WE REALLY TRY TO MAKE
GOOD RELATIONSHIPS WITH ALL OF
OUR LOCAL COMMUNITY GROUPS,
LOCAL GOVERNING BODIES. AND
THERE IS NO ONE SIZE FITS ALL
APPROACH, EACH JURISDICTION IS
DIFFERENT IN WHAT THEY'RE
LOOKING TO ACHIEVE WITH THEIR
BUSINESS DISTRICT. AND OR WHAT
TYPE OF, ENTERTAINMENT AREAS
THEY MAY WANT TO HAVE IN THEIR
JURISDICTION, WE DO WORK VERY
CLOSELY WITH A LOT OF LOCAL
GOVERNING BODIES, JUST RECENTLY,
WE'VE ASSISTED WITH DOING SOME
THINGS THAT WE'VE KIND OF
THOUGHT OUTSIDE THE BOX ON, TO
TRY TO FIND A SOLUTION THÀNH TO
AN ISSUE THAT WAS SPECIFIC TO A
PARTICULAR JURISDICTION. WE
ACTUALLY WORKED WITH AN
ENTERTAINMENT COMMISSION AND
CREATED A CONDITION ON A LICENSE
THAT ONLY EXISTS IN THAT CITY,
TO TRY TO BRING IN LINE THE
REGULATIONS IN THAT CITY WITH
OUR ABC CONDITIONS, SO WE ARE
ROUTINELY TRYING TO THINK
OUTSIDE THE BOX AND WORK WITH
LOCAL GOVERNING BODIES TO FIND
SOLUTIONS TO PROBLEMS IN THEIR
LOCAL COMMUNITIES. AND DO YOU
FIND LOCAL GOVERNMENTS BECAUSE
THIS IS SUCH A HIGH REVENUE
STREAM, TOO, AS WELL? IT'S A
IT'S A BIG IT'S A BIG BUSINESS
IN CALIFORNIA, THAT THEY'RE
WANTING MORE LICENSES OR LESS
LICENSES. IT DEPENDS, I DO
BELIEVE THAT WE'VE SEEN AN
UPTICK IN WHAT WOULD BE CALLED
ENTERTAINMENT DISTRICTS. I THINK
THAT COMING OUT OF THE PANDEMIC,
WE HAVE LOCATIONS THAT ARE
REALLY TRYING TO HARNESS AND
REVITALIZE DOWNTOWN AREAS,
ESPECIALLY WHEN YOU HAVE
TELEWORK AND OTHER THINGS THAT
HAVE COME INTO THE MIX, SO WE
HAVE SEEN AN UPTICK IN THAT.
WHAT I WILL SAY IS THAT THE
LOCAL POLICE DEPARTMENTS IN
THOSE JURISDICTIONS WHERE WE'VE
HAD THOSE DEPARTMENTS OR THOSE,
DESIRES HAVE BEEN WORKING WITH
US, AND WE'VE WORKED WITH THE
LOCALS TO TRY TO MITIGATE ANY
CONCERNS THAT MIGHT COME FROM
THAT. AND HOW ABOUT THE
CHALLENGES AND PERHAPS
OPPORTUNITIES THAT COME WITH,
YOU BEING ABLE TO, TO GET LIQUOR
DELIVERED TO YOU NOW AND GETTING
TO THE, TO GO CUPS. YEAH. SO,
TO, TO SOMEWHAT SEPARATE ISSUES
ALTHOUGH SIMILAR, SO DURING THE
PANDEMIC IN APRIL OF 2020, WE
WERE ALARMED TO FIND OUT THAT WE
HAD, THERE WAS A, AN ARTICLE
THAT WAS IN THE WASHINGTON POST,
THAT SPOKE ABOUT THESE DELIVERY
COMPANIES DELIVERING ALCOHOL TO
KIDS DURING THE PANDEMIC, AND SO
WE IMMEDIATELY JUMPED ON THAT
FACT. AND WE RAN A DECOY
OPERATION. AND THE FIRST
VIOLATION RATE WAS 79, WHICH WAS
COMPLETELY UNACCEPTABLE. AND
THAT WAS REALLY OUR FIRST,
INKLING THAT WE HAD A BIG
PROBLEM ON OUR HANDS, AND SO ONE
OF THE FIRST THINGS THE
DEPARTMENT DID, WHICH I THINK
WAS REALLY PROACTIVE, IS WE
REACHED OUT TO THE DELIVERY
COMPANIES THEMSELVES AND SAID,
HEY, WE'VE GOT A BIG PROBLEM
HERE. AND SO WE REALLY WORKED
WITH THEM TO HELP GIVE THEM BEST
PRACTICES AND GUIDANCE ON HOW TO
PROPERLY CHECK IDENTIFICATIONS.
AND THEY REALLY CREATED A LOT OF
INTERNAL, CHECKS AND BALANCES,
TO HELP DEAL WITH THAT ISSUE. SO
WE'RE CONTINUING TO RUN THOSE
DECOY OPERATIONS, ON A REGULAR
BASIS. AND I'M PROUD TO STATE
THAT LAST YEAR, IN 2023, WE HAD
A 9% VIOLATION RATE. SO DOES THE
DECOY IS BOTH GOING TO STORES
AND HAVING DELIVERIES COME. SO
WE DIFFERENTIATE BETWEEN THE
MINOR DECOY OPERATION WHERE THEY
GO IN THE STORES AND THEN THE
DELIVERY DECOY OPERATION. SO IN
IN THE SECOND OPERATION THE
DELIVERIES, WE ACTUALLY HAVE
THEM DELIVERED TO A PARTICULAR
LOCATION WHERE WE HAVE A DECOY
STATION TO RECEIVE THAT DELIVERY
. AND THE TO-GO CUPS AND THE TO
GO CUPS. SO, ON SALE LICENSEES
HAVE HAD THE ABILITY TO SELL,
PREPACKAGED MANUFACTURED ALCOHOL
FOR YEARS AND YEARS AND YEARS,
THEY JUST NOT A LOT OF THEM
EXERCISE THOSE PRIVILEGES,
UNTIL, OF COURSE, THE PANDEMIC
ROLLED AROUND AND WE WERE
LOOKING FOR WAYS TO OR THEY WERE
LOOKING FOR WAYS TO INCREASE
REVENUE, WE HAVE NOT SEEN ANY
DISCERNIBLE IMPACT TO PUBLIC
SAFETY WITH COCKTAILS TO GO. WE
DO HAVE OCCASIONAL ISSUES WHERE
OUR AGENTS, WHILE WORKING THEIR
ROUTINE ENFORCEMENT, WILL SEE
THAT MAYBE A CUP ISN'T PACKAGED
CORRECTLY OR THERE'S SOME MINOR
VIOLATIONS WITH THE MANNER IN
WHICH THAT THEY'RE ALLOWING
THOSE COCKTAILS TO BE TAKEN OUT.
BUT WE REALLY JUST DEAL WITH IT
AT THE LOCAL LEVEL. TALK TO THE
MANAGERS, AND IN ALMOST ALL
CIRCUMSTANCES, THEY ADDRESS IT
IMMEDIATELY. HOW MANY STAFF IN
THE ORGANIZATION. SO WE HAVE 551
AUTHORIZED POSITIONS. OKAY,
OKAY. ARE YOU FULL, WE ARE NOT
FULL OF THOSE, 271 ARE SWORN
POSITIONS AND WE ARE CONSTANTLY
WORKING TO TRY TO FILL OUR SWORN
RANKS. THANK YOU. YOU'RE
WELCOME. DO YOU HAVE ENOUGH TO
DO THE JOB? WE DO. THANK YOU SO
MUCH. VERY GRATEFUL. PLEASE.
THANK YOU. MR. CHAIR. I HAVE A
FEW QUESTIONS. AND ONE IS, IS
THAT IN YOUR OPENING STATEMENT,
YOU TALKED ABOUT HOW YOUR WHOLE
CAREER HAS BEEN IN ABC AND
WORKING UP. I WANTED TO ASK
ABOUT BOTH SIDES OF THAT. AND
THE FIRST ONE IS, IS WHAT DO YOU
THINK YOU BRING TO THIS JOB BY
HAVING SERVED AT ALL THESE
DIFFERENT LEVELS? AND HAVING
THAT EXPERIENCE IS THE DIRECTOR
OF THE DEPARTMENT. I THINK IT'S
INVALUABLE, I WILL ADMIT THAT AS
I ROSE THROUGH THE RANKS, YOU
KEEP GETTING HIGHER AND HIGHER.
YOU KEEP SEEING A DIFFERENT AND
DIFFERENT PICTURE OF THE
INDUSTRY ITSELF, WHEN I WAS
STARTED OFF AS AN AGENT IN SAN
FRANCISCO, I WAS OUT THERE
TRYING TO WRITE EVERY TICKET I
COULD AND MAKE EVERY CASE THAT I
COULD. THAT WAS A VIOLATION OF
THE ABC ACT, AND AS YOU MOVE
THROUGH THE ORGANIZATION, YOU
START TO REALIZE THAT THERE'S
BETTER WAYS TO, TO DEDICATE
RESOURCES TO BIGGER PROBLEMS AND
THE ALCOHOLIC BEVERAGE INDUSTRY,
AND YOU GET TO A POINT WHERE YOU
REALIZE THAT SOMETIMES THE MORE
MINOR VIOLATIONS CAN BE
ADDRESSED THROUGH A WARNING OR A
DISCUSSION WITH THE EMPLOYEE OR
A MANAGER, VERSUS FILING AN
ACTION AGAINST THEM. SO REALLY
TRYING TO GET TO A PLACE TO
WHERE WE'RE WORKING WITH THE
INDUSTRY TO GET THEM TO COME
INTO COMPLIANCE AND THAT LEADS
TO I STILL WANT TO GET TO THE
OTHER HALF OF THAT QUESTION. BUT
THAT LEADS TO QUESTION. I KNOW
CAME UP IN THE STAFF AND IT WAS
ABOUT A SPECIFIC CASE, AND IT
WAS ABOUT A CASE THAT I BELIEVE
WAS IN SAN DIEGO COUNTY, WHERE A
MINOR WAS SERVED ALCOHOL AND
THEN WAS INVOLVED IN A HIGH
SPEED CHASE, AND A CHILD WAS
KILLED. AND IN THE END, IT WAS
SETTLED FOR THEY DON'T, IF IT
HAPPENS AGAIN IN THE NEXT YEAR,
THEY HAVE THEIR LICENSE,
WHATEVER REVOKED OR LIMITED.
WHERE'S THE LINE? BECAUSE YOU
JUST SAID THAT YOU KNOW, AS YOU
MOVED UP, YOU LEARN THERE MIGHT
BE OTHER WAYS TO DO IT. BUT A
CHILD WAS KILLED IN THAT
INSTANCE, AND THERE'S INCREDIBLE
CULPABILITY FOR THE SERVING. WHY
IS IT OH, IF IT HAPPENS AGAIN,
THERE WHY WASN'T THERE A HIGHER
PENALTY WHEN SOMETHING LIKE THAT
HAPPENED? SO THERE'S STILL SOME
THINGS THAT I BELIEVE ARE
WORKING BEHIND THE SCENES IN
THIS PARTICULAR CASE. AND IT MAY
BE INAPPROPRIATE FOR ME TO
COMMENT ON IT HERE. I'D BE HAPPY
TO HAVE THOSE CONVERSATIONS WITH
YOU, BECAUSE I BELIEVE THERE MAY
BE SOME INFORMATION THAT'S NOT
PUBLICLY KNOWN. THEN LET ME ASK
A QUESTION THAT DOES NOT REQUIRE
THAT YOU REFER TO THAT. OKAY,
BUT YOU MOVED UP AND YOU HINTED
AT YOU LEARNED THAT THERE'S
OTHER WAYS TO DO IT WHERE IS THE
LINE IN THOSE OTHER WAYS? HOW DO
YOU KNOW THAT? BY TRYING TO GET
SOMEBODY PROSPECTIVELY TO DEAL
WITH SOMETHING THAT MIGHT HAVE
HAPPENED, THAT THAT'S THE BEST
WAY TO GO? AT WHAT POINT IS
ACTUALLY REVOKING A LICENSE FOR
A WHILE, THE DETERRENT THAT
MIGHT SEND THE MESSAGE IN A
DIFFERENT WAY. SO WE EVALUATE
EACH CASE ON A CASE BY CASE
BASIS. WE DO HAVE REGULATIONS
THAT SPELL OUT WHAT THE
PENALTIES CAN BE FOR PARTICULAR
VIOLATIONS. OBVIOUSLY THERE IS
DISCRETION WITHIN THE DEPARTMENT
, ESPECIALLY WHEN WE'RE TALKING
ABOUT SETTLEMENTS, AND SO REALLY
IT'S A CASE BY CASE
DETERMINATION. I CAN TELL YOU
THAT IF YOU LOOK UP RULE 144 OF
OUR REGULATION THAT SPEAKS TO
PENALTIES, YOU WILL SEE THAT
THERE IS A GRADUATED PENALTY IN
THE VIOLATIONS THAT ARE MORE
PUBLIC SAFETY RELATED CELLS AND
NARCOTICS. BUT, YOU KNOW, I USED
TO TEACH PERSONNEL PRACTICES AND
YOU HAVE TO DO PROGRESSIVE
DISCIPLINE WHERE YOU SOMEBODY
HAS TO DO IT ONCE AND BE WARNED.
AND BUT I USED TO ALWAYS SAY,
BUT YOU DON'T MURDER SOMEBODY
ONCE AND GET WARNED AND MURDER
SOMEBODY A SECOND TIME AND GET
WARNED, AND THEN YOU'RE REALLY
THE BOOK IS THROWN AT YOU AFTER
YOU MURDER SOMEBODY. THE THIRD
TIME. THERE ARE TIMES WHEN IT IS
SO SEVERE THAT YOU DON'T HAVE TO
GO THROUGH THE PROGRESSIVE
THING, AND THAT'S WHAT I'M
TRYING TO GET AT. DO YOU FIND
THAT THERE ARE TIMES WHEN YOU
BELIEVE IT'S SO SEVERE THAT THEY
PAY A PENALTY, AND IN A WAY THAT
IS THE HIGHEST LEVEL OF YOUR
DISCRETION? YES. OKAY. DOES THAT
HAPPEN REGULARLY? I WANT TO SAY
WE IN 20, 223 FISCAL YEAR, I
BELIEVE WE HAD, I DON'T HAVE THE
EXACT NUMBER, BUT IT WAS
SOMEWHERE AROUND 200 REVOCATIONS
OF ABC LICENSES. OKAY, I CAN GET
YOU THE EXACT NUMBER. WELL, IT'S
INTERESTING BECAUSE WE'RE HAVING
THIS DISCUSSION. I NEVER GOT TO
THE SECOND HALF OF THE QUESTION,
AND THE FIRST HALF WAS ALL THE
BENEFITS FROM HAVING SERVED IN
THE DEPARTMENT YOUR WHOLE
CAREER. WHAT DO YOU HAVE TO
GUARD AGAINST HAVING SERVED IN
THE DEPARTMENT? ISN'T THE WHOLE
CAREER TO BE ABLE TO TRULY LOOK
FROM THE OUTSIDE SIDE AND SEE
THINGS THAT YOU MIGHT START TO
BECOME RELAXED ABOUT, OR TAKE
FOR GRANTED? HOW DO YOU KEEP
THAT EDGE AS AN OUTSIDER, THAT
WOULD LOOK AND TAKE ACTIONS IN
DIFFERENT CASES? YEAH. SO,
BEFORE I STARTED WITH THE
DEPARTMENT, I ACTUALLY IN
COLLEGE WORKED AT A SMALL
BREWERY IN THE AREA AS AN
ASSISTANT MANAGER, AND IT WAS
WHILE I WAS GOING THROUGH
COLLEGE AND WORKING AT THAT
BREWERY WHERE I WAS, ASKED TO
WORK THURSDAY, FRIDAY AND
SATURDAY NIGHTS IN A COLLEGE
TOWN, WHILE STUDYING CRIMINAL
JUSTICE. AND THAT'S WHEN I
REALIZED THAT PERHAPS ABC WAS
THE PLACE FOR ME, BECAUSE I
WOULD BE ABLE TO USE SOME OF MY
EXPERIENCE FROM WORKING IN THE
RESTAURANT AND BREWERY, BUT TO
YOUR POINT, I THINK, I AM ALWAYS
COGNIZANT OF THE FACT THAT I
HAVE BLIND SPOTS. I AM NOT AN
AUTOCRATIC LEADER. I REALLY RELY
UPON INPUT FROM OTHERS WHEN
MAKING DECISIONS, I THINK IT'S
VERY DANGEROUS TO THINK THAT I
HAVE ALL THE RIGHT, IDEAS OR I
KNOW THE RIGHT WAY TO PROCEED
WITHOUT SEEKING INPUT FROM
OTHERS, OFTENTIMES THAT INVOLVES
US, NOT NECESSARILY AS FAR AS
PENALTY IS CONCERNED, BUT JUST
GENERAL DECISION MAKING,
REACHING OUT TO OUR STAKEHOLDERS
AND ASKING THEM WHAT THEY THINK
WE SHOULD DO, CONFIDING IN OUR
LOCAL LAW ENFORCEMENT AGENCIES
AND GETTING THEIR INPUT ON A
PARTICULAR LOCATION BEFORE WE
TAKE ACTION, SO I HOPE THAT THAT
ANSWERS YOUR QUESTION. IT DOES,
BUT I'LL ASK A FOLLOW UP. AND
THAT IS SOMEBODY THAT HAS BEEN A
MANAGER AT DIFFERENT STAGES IN
IN MY CAREER. I HAD ONE
EXPERIENCE ONCE WHERE THERE WAS
FAIRLY EGREGIOUS SEXUAL
HARASSMENT THAT WENT ON AND IT
WAS SETTLED. THE PERSON DID NOT
PAY, THEY HAD IT OUT THE DOOR,
BUT ON THEIR OWN TERMS. AND I'M
AWARE THAT THIS MAY WELL HAVE
REPEATED ITSELF AND SO THIS
COMES TO MY ATTENTION, AND I
SORT OF CHANGED THE ETHIC AND
THE POLICY THAT I DON'T CARE HOW
HARD IT IS. I KNOW IT'S EASIER
TO JUST SETTLE AND NOT FIGHT,
BUT THERE'S IMPACTS OF THIS.
WE'RE NOT ONE OF THOSE
INSTITUTIONS THAT JUST PASSES
PEOPLE AROUND THAT, THAT DO
THAT. AND THE THING THAT IT MADE
ME REALIZE IS I HAVE TO BE OPEN
TO FIGURING THAT OUT. I HAVE TO
BE OPEN TO KNOWING IN A MASSIVE
ORGANIZATION ON HOW I AM GOING
TO TAP INTO THAT AND KNOW WHAT'S
GOING ON. HOW DO YOU KNOW THAT
IF SOMETHING EGREGIOUS IS GOING
ON, IT'S GOING TO GET TO YOU
INTERNALLY OR EXTERNALLY?
INTERNALLY MOST LIKELY, BUT
OBVIOUSLY SOME OF THESE THINGS
INVOLVE EXTERNAL THINGS. THE
QUESTION IS, IS HOW DO YOU NOT
RELY ON THE CHAIN OF COMMAND
WHEN THE CHAIN OF COMMAND MAY
NOT BE PRODUCING THE FACTS TO
YOU THAT YOU NEED TO DO YOUR
JOB? THAT'S A FAIR QUESTION, SO
FIRST OFF, I HAVE A FANTASTIC
TEAM, THAT WORKS WITH ME, I
OFTEN GO TO PEOPLE WHO ARE
BENEATH ME IN THE CHAIN OF
COMMAND BY SEVERAL LEVELS AND
TALK TO THEM AND BECAUSE THEY'RE
THE SUBJECT MATTER EXPERTS. AND
SO I WILL GO TO THEM AND SAY,
THIS IS THE ROAD THAT WE'RE
THINKING TO GO DOWN. PLEASE TELL
ME WHY THIS IS A REALLY BAD
IDEA. SO I DO TRY TO SOLICIT
INPUT. I DO TRY TO CREATE AN
ENVIRONMENT WHERE, OTHER MEMBERS
OF THE DEPARTMENT FEEL THAT IT'S
SAFE TO BE ABLE TO PROVIDE THEIR
OPINION, ON DECISIONS THAT ARE
BEFORE US. OKAY. AND THEN I HAVE
ONE LAST QUESTION. AND IT'S MORE
ADMINISTRATIVE. YOU RELY ON THE
ABC FUND. IT IS IN SOME WAYS
HEADED TO INSOLVENCY. èC WHAT
DO YOU DO TO TRY TO STAVE THAT
OFF? AND IS THAT SOMETHING WHERE
YOU HAVE TO COME TO US AND ASK
FOR GENERAL FUND? WHAT IS THE
STATUS AND WHAT ARE THE OPTIONS?
SO WE ALREADY CAME AND ASKED FOR
GENERAL FUND LAST YEAR AND
FORTUNATELY THAT WAS APPROVED,
THAT WAS TO BACKFILL, A LOT OF
THE LOST REVENUE FROM THE
PANDEMIC, BECAUSE DURING THAT
TIME WE WERE NOT ISSUING DAILY
LICENSES. THOSE ARE THE LICENSES
FOR YOUR EVENTS, FOR, CATERING
AUTHORIZATIONS, FOR WEDDINGS,
THINGS OF THAT NATURE. AND THAT
ACTUALLY CREATED QUITE A HOLE IN
OUR BUDGET, WE WERE AUTHORIZED
THROUGH THE BUDGET ACT FOR 20.5
MILLION. WE WERE ACTUALLY
PROVIDED WITH 15.5 MILLION HAS
ALREADY BEEN TRANSFERRED, THAT'S
WHAT WAS ULTIMATELY AGREED TO,
OUR PROJECTIONS FOR THE END OF
THIS FISCAL YEAR SHOW THAT WE'RE
GOING TO HAVE A FUND RESERVE OF
14.5 MILLION, AND THEN IT GOES
DOWN FROM THERE. WE'RE CONFIDENT
THAT WITH CPI INCREASES, THAT
WE'RE STATUTORILY AUTHORIZED TO
BE ABLE TO TRIGGER EACH YEAR,
THAT WE SHOULD BE ABLE TO REMAIN
SOLVENT AND HAVE THE FUNDS. DO
YOU THINK THE CURRENT SOLVENCY
CRISIS WAS DUE MOSTLY TO THE
PANDEMIC? BUT I GOT THE
IMPRESSION THERE WAS A LONG
TERME TREND THAT HAD THE FUND ON
THE EDGE, UNRELATED TO THE
PANDEMIC. IS THAT NOT THE CASE?
WELL I THINK THAT WE CERTAINLY
WERE. WE'RE USING OUR FUND TO
HELP FUND A LOT OF OUR
MODERNIZATION EFFORTS, WE HAVE
THINGS THAT WE NEEDED TO DO AS
A, AS A DEPARTMENT TO BETTER
SERVE OUR LICENSEES AND THE
PEOPLE OF THE STATE. AND SO WE
HAD A LARGER FUND BALANCE THAT
WE WERE PAYING DOWN. AND THEN
THE PANDEMIC HIT. AND THEN THAT
MADE THINGS MUCH WORSE. OKAY, I
APPRECIATE THAT. THANK YOU, MR.
CHAIR. THANK YOU SO MUCH.
SENATOR. WOULD LIKE TO SEE IF
THERE'S ANY I HAVE A COUPLE
QUICK QUESTIONS. ANY ADDITIONAL
COMMENTS? QUESTIONS FOR THE
DIRECTOR AND SEEING NONE. MR.
DIRECTOR, THANK YOU AGAIN. THANK
YOU AGAIN FOR APPEARING TODAY. A
FEW ITEMS LIVING SMACK DAB IN
THE MIDDLE OF WINE COUNTRY AND,
HAVE A COUPLE OF ITEMS AND WE
GET FREQUENT CALLS, WHETHER IT'S
FROM, TASTING ROOMS, WINERIES,
ETC. AND I WILL SAY THAT SANTA
ROSA OFFICE IS A BUSY OFFICE.
YES, YOU ARE ALL OVER THE REGION
, AND GRATEFUL FOR THEIR,
FREQUENT RESPONSE, WHICH I TRULY
APPRECIATE. AS YOU KNOW, WHEN
YOU'RE IN CUSTOMER SERVICE, WANT
TO BE ABLE TO GET BACK TO FOLKS
IMMEDIATELY. AND I WILL SAY
THERE'S A TREND, AS WE'VE BEEN
SEEING, OF, WINERIES GOING IN
WITH COFFEE SHOPS OR WINERIES
GOING IN WITH, TASTING ROOMS, I
SHOULD SAY TASTING ROOMS, GOING
IN WITH OTHER TYPES OF
BUSINESSES. AND I KNOW THAT'S,
SOMETHING NEW. JUST GIVE US YOUR
THOUGHTS ON THAT. OBVIOUSLY, WE
THINK IT'S GOOD. MY OWN BIAS.
IT'S GOOD FOR DOWNTOWNS, ETC,
BUT IT SEEMS TO BE SOMETHING NEW
THAT STAFF TEAM IS WORKING
THROUGH. HAVING I'LL JUST SAY A
BAKERY IN THE MORNING, TURNING
INTO A WINE TASTING BAR IN THE
EVENING. YOUR THOUGHTS ON THAT
AS WE COME OUT OF THE PANDEMIC
AND THERE'S NEW IDEAS. YEAH. SO
THAT'S THE INTERESTING THING, IS
THAT WE HAVE LAWS THAT WERE
REALLY CREATED FROM AROUND 1933,
AND WE HAVE LICENSEES WHO ARE
CONTINUING TO INNOVATE AND COME
UP WITH NEW BUSINESS MODELS. SO
WE'RE CONSTANTLY TRYING TO WRAP
OUR MINDS AROUND SOME OF THESE
NEW IDEAS. AND FOR US, REALLY,
IT COMES DOWN TO WHO'S ACTUALLY
SELLING THE ALCOHOL AND
RECEIVING PROFITS FROM THE SALE
OF THAT ALCOHOL. SO THAT'S OUR
MAJOR CONCERN, THERE CAN BE
DIFFERENT ARRANGEMENTS THAT ARE
MADE BETWEEN LICENSEES AND OTHER
PARTIES TO SHARE SPACE AND DO
DIFFERENT THINGS, ULTIMATELY WE
JUST WANT TO MAKE SURE THAT THE
LICENSEE THEMSELVES IS
RESPONSIBLE FOR THE AREA WHERE
ALCOHOL IS BEING CONSUMED AND
FOR THE SALES AND SERVICE OF
ALCOHOL. YEAH. AND I THINK THAT
WHERE WE'VE BEEN SEEING A LOT OF
IS THAT AS WE COME OUT OF THE
PANDEMIC, COMMERCIAL RENTS ARE
INCREDIBLY HIGH AND BUSINESSES
COMING TOGETHER TO BE ABLE TO
MAKE THAT RENT AND NOT JUST HAVE
A 6 A.M. TO A 3 P.M. BUSINESS,
BUT BEING ABLE TO SUBLEASE AND
THEN POTENTIALLY LOOK AT, FOR
EXAMPLE, WINE TASTING ROOM. I
KNOW WE HAVE THREE DIFFERENT
APPLICATIONS THAT HAVE, MADE A
WAY THROUGH ABC IN SANTA ROSA
AND THEN HAVE CONTACTED OUR
OFFICE. SO JUST WANTED TO GET
YOUR THOUGHTS. I THINK IT'S,
AGAIN, A NEW WAY OF THINKING,
AND IT'S BEEN DONE IN OTHER
PARTS OF THE COUNTRY AND,
NEEDING TO BE ABLE TO KEEP THOSE
DOWNTOWNS VIBRANT. RIGHT, WITH
ADDITIONAL SERVICE AND OR
ENTERTAINMENT FOR LONGER. YEAH,
I EACH LOCATION IS DIFFERENT AND
IT'S REALLY GOING TO DEPEND ON
THE LOCATION AND THE BUSINESS
MODEL THAT'S BEING PRESENTED.
BUT GENERALLY WE'RE OPEN TO ANY
TYPE OF INNOVATION THAT'S GOING
TO HELP IN THAT SPACE. WE JUST
WANT TO MAKE SURE THERE'S SOME
GUARDRAILS UP SO THAT WE CAN
HOLD THE CORRECT PEOPLE
RESPONSIBLE. SHOULD THERE BE ANY
ISSUE WITH THEIR LICENSE. I'D
LIKE TO GO BACK TO THE ISSUE OF
STAFFING AND ESPECIALLY IN THE
LAW ENFORCEMENT SIDE, IT SEEMS
THAT, AND AGAIN, I CAN ONLY
SPEAK TO THE REGION WHERE I LIVE
ON THE NORTH COAST, THAT IT'S
REALLY CHALLENGING, ESPECIALLY
TO BE ABLE TO, HIRE SWORN, EVERY
VÆ SEEMS LIKE EVERY SHERIFF'S
OFFICE, THE CHP, AND I SAY THE
CHP HAVE SIGNING BONUSES, RIGHT.
AND RECRUITING AWAY, ALONG WITH
LOCAL MUNICIPAL DEPARTMENTS. IT
YOU'RE STUCK. SO CAN YOU TALK TO
US ABOUT THAT AND WHAT THAT
LOOKS LIKE AS YOU GO FORWARD?
BECAUSE IT SEEMS LIKE THAT IS
THE ONE ACHILLES HEEL THAT THE
DEPARTMENT HAS OF HAVING ENOUGH
STAFF TO BE ABLE TO DO ALL THE
TASKS THAT ARE NEEDED. YEAH, I
WOULD AGREE IN THAT. THAT IS
TOUGH FOR US, WE'VE TAKEN GREAT
STRIDES TO REVAMP OUR HIRING
PROCESS, WE HAVE VACANCIES NOW,
BUT WE HAVE OVER 200. WE HAVE
263 PEOPLE IN THE PIPELINE FOR
OUR AGENT HIRING PROCESS RIGHT
NOW FOR ROUGHLY 30 VACANCIES,
THE ISSUE BECOMES IT'S TWOFOLD,
AS YOU POINTED OUT, ONE THERE,
WE'RE COMPETING FOR THE SAME
POOL OF CANDIDATES AND OTHER
DEPARTMENTS ARE GOING TO BE ABLE
TO PAY MORE THAN WE ARE ABLE TO
PAY, BUT MORE IMPORTANTLY IS OUR
ABILITY TO BE NIMBLE AND GET
PEOPLE HIRED ON QUICKLY. IT
TAKES BETWEEN EIGHT MONTHS AND A
YEAR TO HIRE A PEACE OFFICER
CANDIDATE. FROM THE TIME THAT
THEY TAKE THE TEST TO THE TIME
THAT WE ACTUALLY BRING THEM ON
BOARD. AND SO WE INVEST A LOT OF
TIME IN THAT PROCESS. AND IF
THEY FALL OUT AT THE SEVEN MONTH
MARK UNDER OUR OLD MODEL, WE
JUST LOST SEVEN MONTHS WORTH OF
TIME TO GET THAT POSITION FILLED
. SO WE REVAMPED OUR PROCESS. WE
HAVE MORE PEOPLE IN THE
PIPELINE, WHICH HAS ALLOWED US
TO BE MORE NIMBLE, AND WE'RE
PRETTY CONFIDENT THAT WE'RE
GOING TO BE ABLE TO GET TO A
TARGET OF ABOUT A 4 OR 5%
VACANCY RATE HERE VERY QUICKLY
BY CUTTING DOWN ON THE TIME
KARLEKAR IS TAKING. I'D LOVE TO
BE ABLE TO BLAME KARLEKAR, BUT
IT'S NOT JUST KARLEKAR, IT'S
BACKGROUND INVESTIGATIONS. IT'S
STUFF ON OUR SIDE TOO. AND HOW
MANY FOLKS APPLYING FALL OUT
THROUGH THAT BACKGROUND, WOULD
YOU SAY JUST ATTRITION RATE,
BALLPARK THIRD? SO I WE HAVE
ACTUALLY BROKEN DOWN OUR HIRING
PROCESS, AND WE ARE NOW ABLE TO
SEE WHERE PEOPLE FALL OUT AT
EVERY SINGLE STAGE OF THE
PROCESS. SO WE HAVE DATA THAT
SHOWS BY DEMOGRAPHICS AS WELL
HOW MANY PEOPLE FALL OUT AT THE
EXAM LEVEL, HOW MANY PEOPLE FALL
OUT AT THE FIRST INTERVIEW?
BACKGROUND ALL THE WAY THROUGH
OUR PROCESS, AND SO I DON'T HAVE
AN ESTIMATE AS TO HOW MANY FALL
OUT DURING BACKGROUND,
SPECIFICALLY BECAUSE WE DO A
PRE-INTERVIEW REVIEW OF THEIR
PERSONAL HISTORY STATEMENT,
WHICH SOMETIMES AUTOMATICALLY
DISQUALIFIES SOME CANDIDATES.
AND I'LL JUST CALL IT A LATERAL.
HOW MANY FOLKS DO YOU SEE THAT
HAVE HAD PREVIOUS EXPERIENCE IN
LAW ENFORCEMENT VERSUS COMING IN
NEW, AN ESTIMATE ON MY PART IS
ABOUT 50% OF OUR STAFF ARE
COMING IN WITH EXPERIENCE, AND
THE OTHER 50% ARE NEW AND
NEEDING AN ACADEMY AND YOUR
BIGGEST CHALLENGE AREA IS WHAT
IN REGARDS TO STAFFING FOR SWORN
REGION Þ REGION, SO THE BAY AREA
IS THE BIGGEST PROBLEM FOR US.
YES GOT IT. AND AGAIN, CAN'T
STRESS THIS ENOUGH. THE SONOMA
COUNTY OFFICE HAS BEEN THEY'RE
INCREDIBLY RESPONSIVE, VERY
CUSTOMER DRIVEN. AND I KNOW IT'S
HIGH VOLUME. AND JUST TRULY
APPRECIATE THAT. IF YOU CAN PASS
THAT ON I WILL. THANK YOU. THANK
YOU SO MUCH, MR. DIRECTOR. I
WOULD LIKE TO BE ABLE TO SEE IF
THERE'S ANY ADDITIONAL
QUESTIONS, COMMENTS BEFORE WE GO
TO THOSE WHO ARE IN ATTENDANCE
TODAY, ALL RIGHT. HEARING SEEING
NONE, WE'RE NOW GOING TO INVITE
ANYONE WHO WOULD LIKE TO BE ABLE
TO SPEAK IN SUPPORT OF THE
DIRECTOR'S APPOINTMENT. IF YOU
COULD PLEASE COME FORWARD TO THE
PODIUM, WE'RE GOING TO ASK YOU
TO PLEASE PROVIDE YOUR FIRST AND
LAST NAME, THE ORGANIZATION THAT
YOU'RE THAT YOU'RE WITH. WE
RESPECTFULLY REQUEST THAT YOU
KEEP YOUR COMMENTS TO 30S.
SCHMELZER. GOOD AFTERNOON. I'M
SCHMELZER, HI, I'M TIM
SCHMELZER, WITH WINE INSTITUTE,
WE'RE HERE IN, FULL THROATED
SUPPORT OF DIRECTOR MCCULLOCH'S
CONFIRMATION, JUST TO COMMENT ON
SOME OF THE THINGS THAT WERE
SAID TODAY, WE FOUND HIM ALSO TO
BE VERY ACCESSIBLE AND
RESPONSIVE. FANTASTIC LISTENER
AND A GOOD COLLABORATOR, THE
FACT THAT HE AND HIS STAFF ARE
ABLE TO BRING OUTSIDE THE BOX
THINKING TO SOLVE PROBLEMS IS
SOMETHING WE REALLY APPRECIATE.
AND LOOK FORWARD TO WORKING
WITH, AND THEN SOMEWHAT
SURPRISINGLY, SOME OF THE
ENFORCEMENT STUFF, YOU SPOKE TO,
WE FEEL IS REALLY IMPORTANT FOR
OUR INDUSTRY AS WELL, IN
PARTICULAR, YOU SPOKE TO DIRECT
TO CONSUMER SHIPMENTS. IT IS
VITAL TO OUR INDUSTRY THAT THOSE
ARE ARE LEGITIMATE AND
CONSIDERED LEGITIMATE, AS THEY
ARE THE ABSOLUTE LIFEBLOOD OF
SMALL WINERIES IN CALIFORNIA.
AND EFFORTS TO ENSURE THAT IT'S
DONE RIGHT, LIKE WE SUPPORT OUR
GREATLY APPRECIATED. WE THINK
THINK YOUR WORK IN THAT HAS BEEN
A GREAT WORK. GOD'S WORK, IN OUR
OPINION, FRANKLY, SO ANYWAY, I
ENCOURAGE YOUR STRONG SUPPORT
TODAY. THANK YOU. THANK YOU.
GOOD TO SEE YOU. WELCOME. THANK
YOU. GOOD AFTERNOON, CHAIR AND
MEMBERS, MARLON LARA WITH THE
CALIFORNIA RESTAURANT
ASSOCIATION, WE REPRESENT MANY
NEIGHBORHOOD RESTAURANTS
THROUGHOUT THE STATE, MANY WHICH
ARE ABC LICENSE HOLDERS. I'M
HERE TO SUPPORT THE CONFIRMATION
OF MISTER MCCULLOUGH AS THE
DEPARTMENT DIRECTOR OF
DEPARTMENT OF ABC. MISTER
MCCULLOUGH HAS VAST EXPERIENCE
WITHIN THE ABC. HE'S PROVEN
HIMSELF INCREDIBLY KNOWLEDGEABLE
ON THE COMPLEX ISSUES UNDER ITS
JURISDICTION. HE'S BEEN TOUGH
BUT FAIR, AND HAS ALWAYS BEEN
VERY ACCESSIBLE. AND FOR THIS,
WE'RE REALLY GRATEFUL. HAPPY TO
FULLY SUPPORT, MISTER MCCULLOUGH
AS A DIRECTOR OF ABC. AND WE
RESPECTFULLY REQUEST YOUR VOTE
IN FAVOR OF HIS CONFIRMATION.
THANK YOU. THANK YOU SO MUCH.
THANK YOU FOR YOUR TESTIMONY.
HEY. GOOD AFTERNOON. GOOD
MORNING OR GOOD AFTERNOON, MR.
CHAIR. MEMBERS OF COMMITTEE,
CHRIS WALKER, ON BEHALF OF THE
CALIFORNIA CRAFT BREWERS
ASSOCIATION. GLAD TO HEAR THAT
DIRECTOR MCCULLOUGH STARTED OUT
IN A BREWERY. THAT'S A THAT'S A
VERY GOOD BEGINNING, AND WE JUST
WANT TO SAY THAT WE SUPPORT HIS
APPOINTMENT AND CONFIRMATION, IN
THE STRONGEST TERMS, WE AS AN
INDUSTRY, RELY UPON STRONG
ENFORCEMENT OF THE RULES AND THE
REGULATIONS AND THE LAWS IN THIS
STATE, PARTICULARLY TIED HOUSE,
AND WE HAVE EVERY TRUST AND
CONFIDENCE THAT DIRECTOR
MCCULLOUGH WILL CONTINUE TO DO
THAT ON BEHALF OF THE ABC, ON
BEHALF OF OUR INDUSTRY. THANK
YOU. REALLY APPRECIATE THAT.
GOOD TO SEE YOU. THANK YOU SO
MUCH. WELCOME TO THE COMMITTEE.
THANK YOU, CHAIRMAN MCGUIRE.
MIKE, SKIPPER, ON BEHALF OF
ALCOHOL JUSTICE CENTER, FIELD
BASED ORGANIZATION AND ALSO
KAPPA CALIFORNIA ALCOHOL POLICY
ALLIANCE, WE ARE DELIGHTED TO BE
ABLE TO SUPPORT IT, DIRECTOR
MCCULLOUGH, AS HE MOVED UP, IT'S
IMPORTANT FOR THOSE OF US WHO
WORK ON THE PUBLIC HEALTH AND
SAFETY SIDE OF THIS TO HAVE A
CHANNEL OF COMMUNICATION, WITH
ABC. AND JOSEPH HAS DONE NOTHING
BUT ENCOURAGE US TO CONTINUE
THAT. AND WE HAVE QUARTERLY
MEETINGS WITH HIM AND HIS STAFF,
AND IT IS INVALUABLE. THAT OUR
PERSPECTIVE, IS TAKEN INTO
CONSIDERATION WHEN IT COMES TO
RULES AND REGULATIONS ON SERVING
OF ALCOHOL. WE APPRECIATE THE
OPPORTUNITY AND WE HOPE THAT YOU
WILL VOTE TO CONFIRM HIM. THANK
YOU. THANK YOU SO MUCH. THANK
YOU FOR BEING HERE. WE'D LIKE TO
BE ABLE TO DO A FINAL CALL FOR
THOSE IN SUPPORT. FINAL CALL FOR
THOSE IN SUPPORT. CAN YOU PLEASE
COME FORWARD AT THIS TIME
HEARING, SEEING NO ONE STAND,
WE'RE NOW GOING TO OFFER THOSE
WHO MAY BE IN OPPOSITION. IF
YOU'RE IN OPPOSITION, IF YOU
COULD PLEASE COME FORWARD TO THE
PODIUM AT THIS TIME. WE'RE GOING
TO DO A LAST CALL FOR THOSE WHO
MAY BE IN OPPOSITION. IF YOU
COULD PLEASE STEP FORWARD AT
THIS TIME, SEEING NO ONE, WE'RE
NOW GOING TO BRING IT BACK TO
COMMITTEE TO BE ABLE TO SEE IF
THERE'S ANY QUESTIONS, COMMENTS,
OR WE'LL WELCOME A MOTION AS
WELL. I'D LIKE TO MAKE A MOTION
TO MOVE THE COMPANY TO THE FULL
SENATE FLOOR, PLEASE. SIR. THANK
YOU SO MUCH. WE HAVE A MOTION BY
MADAM VICE CHAIR. MADAM
SECRETARY, CAN YOU PLEASE CALL
THE ROLL MCGUIRE A MCGUIRE? AYE.
GROVE. GROVE AYE. EGGMAN.
EGGMAN. AYE. JONES. AYE JONES.
AYE. LAIRD. LAIRD. AYE. 5 TO 0
FIVE ZERO VOTE. CONGRATULATIONS,
MR. DIRECTOR. WE TRULY
APPRECIATE YOU BEING HERE. NEXT
UP WILL BE THE SENATE FLOOR.
THANK YOU SO MUCH. THANK YOU,
THANK YOU, THANK YOU SO MUCH.
AND THANK YOU TO MICHELLE AND
THE BOYS FOR BEING HERE AS WELL.
IT'S GOOD TO SEE YOU. THANK YOU.
WE'RE GOING TO LOOK TO MISS
LEBLANC. MISS LEBLANC, HOW YOU
HOLDING UP? DO YOU NEED A LITTLE
BIT OF BREAK? YES, MA'AM. WE'RE
GOING TO TAKE A FIVE MINUTE
BREAK. FIVE MINUTE BREAK? WE'LL
BE BACK WITH YOU. FIVE MINUTE
RECESS.
ALL RIGHT. WE'RE GOING TO GET
STARTED IN 60S. WE'RE GOING TO
HAVE MR. MILDERT PLEASE COME
FORWARD. WE'LL GET STARTED IN
60S. GOT IT
.
I'LL GO. ALL RIGHT, LADIES AND
GENTLEMEN, COMMITTEE. AND TO
THOSE WHO ARE IN ATTENDANCE,
WE'RE GOING TO BE COMING BACK
WITH OUR LAST CONSIDERATION HERE
TODAY. AND THAT'S MR. MILDERT,
THE DIRECTOR, DIVISION OF
PETROLEUM MARKET OVERSIGHT VIA
THE CALIFORNIA ENERGY COMMISSION
. MR. MILES HAS BROUGHT OUT THE
WHOLE FAMILY, WHICH WE'RE
EXCITED TO BE ABLE TO SEE HERE
TODAY. THANK YOU SO MUCH, MR.
DIRECTOR, YOU WILL HAVE 1 OR 2
MINUTES TO BE ABLE TO PROVIDE
OPENING TESTIMONY TO THE
COMMITTEE TODAY. WE WOULD LOVE
TO BE ABLE TO HAVE YOU INTRODUCE
YOUR FAMILY TO US. WE LOOK
FORWARD TO HEARING ABOUT THEM,
AND OF COURSE, WE'LL BE OPENING
UP FOR QUESTIONS AND COMMENTS
FROM THE COMMITTEE AS WELL TODAY
TO BE ABLE TO HAVE A
CONVERSATION WITH YOU. MR.
DIRECTOR, WELCOME. YOU HAVE TWO
MINUTES. I'LL GIVE YOU A 32ND
PROMPT. THANK YOU SO MUCH FOR
TAKING TIME OUT OF YOUR BUSY
SCHEDULE. THANK YOU, MR. MR.
CHAIR. THERE WE GO. COMING IN
HOT, MADAM VICE CHAIR, ALL THE
MEMBERS OF THE COMMITTEE, I AM
REALLY HONORED TO BE ABLE TO
INTRODUCE MY FAMILY. AND IF I
DON'T DO THAT, THEY'LL PROBABLY
INTRODUCE THEMSELVES. YOU SEE,
THERE WE GO. SPECIFICALLY MY SON
HENRY, WHO'S IN THIRD GRADE. MY
DAUGHTER ROSE, WHO'S IN FIFTH
GRADE. HENRY HAS HIS OWN DANCE
READY TO GO. SO I LIKE IT, MY
PARTNER JESSICA, MY BROTHER TOM
MILDER, AND ALSO DIVISION CHIEF
RYAN MCCAULEY FROM DPMO IS HERE
AS WELL. AND LESLIE WOLF MAYBE,
MAYBE STEPPED OUT. BUT A
COLLEAGUE AND THE CHIEF OF THE
SAN FRANCISCO OFFICE OF THE
ANTITRUST DIVISION, U.S.
DEPARTMENT OF JUSTICE, THIS IS
SUCH AN AMAZING OPPORTUNITY. I
WANT TO START WITH A NOTE OF
HUMILITY, AND THANKS FOR YOUR
TIME AND ALSO THIS OPPORTUNITY
FOR MY CHILDREN TO SEE A CIVICS
LESSON IN PERSON, TO SEE OUR
GOVERNMENT AT WORK, SO I
ACCEPTED THIS APPOINTMENT WITH
DEEP HUMILITY AND A SENSE OF
RESPONSIBILITY. K¾T I WAS BORN
AND RAISED IN CALIFORNIA, AND
I'M PROUD TO HAVE GRADUATED FROM
CALIFORNIA PUBLIC SCHOOLS. I AM
SO GRATEFUL FOR THE
OPPORTUNITIES THAT THIS GREAT
STATE HAS GIVEN TO ME. I WAS
FORTUNATE ENOUGH TO BEGIN MY
LEGAL CAREER AS A PROSECUTOR IN
THE IN THE US DEPARTMENT OF
JUSTICE, AND I LEARNED A FEW
THINGS ABOUT WHAT A PROSECUTOR
DOES. YOU FOLLOW THE FACTS
WHEREVER THEY LEAD YOU ARE
INDEPENDENT AND YOU PROMOTE
TRANSPARENCY AND SEEK
ACCOUNTABILITY. THESE PRINCIPLES
GUIDE THE WORK OF THE NEW
DIVISION OF PETROLEUM MARKET
OVERSIGHT. EVERY DAY. WHEN I
TOOK ON THIS ROLE, ABOUT EIGHT
MONTHS AGO, I WAS CLEAR EYED
ABOUT THE CHALLENGES WE FACE.
WE'RE A BRAND NEW DIVISION, AND
YET WE FACE AN URGENT NEED. AND
THAT NEED IS REFLECTED IN THE
PASSAGE OF SB 1-2 IN SPECIAL
SESSION. CALIFORNIA CONSUMERS
HAVE BEEN PRICE GOUGED. WE'VE
SEEN SIGNIFICANT PRICE SPIKES IN
THREE OF THE LAST FIVE YEARS.
THE TWO YEARS WITHOUT PRICE
SPIKES WERE DURING THE PANDEMIC,
WHEN DEMAND HAD FALLEN OFF OF A
CLIFF. INDEPENDENT ECONOMISTS
HAVE CONCLUDED THAT RETAIL GAS
PRICES IN OUR STATE ARE INFLATED
EVEN AFTER ACCOUNTING FOR TAXES
AND FEES. CALIFORNIANS HAVE BEEN
PAYING TOO MUCH AT THE PUMP FOR
TOO LONG. WE'RE STILL IN THE
EARLY STAGES OF BUILDING OUR
TEAM AND GATHERING CRITICAL
INFORMATION. WE'RE FOLLOWING THE
FACTS AND USING THE NEW DATA AND
TRANSPARENCY TOOLS IN THE
STATUTE. EVEN AT THIS EARLY
STAGE, LOOKING AT THAT DATA, WE
SEE A VERY CLEAR TREND IN PRICE
SPIKES AT THE GAS PUMP ARE
PROFIT SPIKES FOR THE OIL
INDUSTRY. I AM HOPEFUL THAT
USING THESE NEW TOOLS AND
BRINGING A WHOLE OF GOVERNMENT
APPROACH, WE CAN TACKLE THIS
PROBLEM AS WE BUILD OUR TEAM OF
ATTORNEYS, ECONOMISTS AND
INVESTIGATORS. THE DIVISION IS
FOCUSED ON DETERRING AND
DETECTING MISCONDUCT. SO
PROTECTING CONSUMERS IS OUR CORE
FOCUS. AND I KNOW THAT'S A
SHARED PRIORITY WITH EACH OF THE
MEMBERS OF THIS COMMITTEE. I
LOOK FORWARD TO TAKING YOUR
QUESTIONS AND THANK YOU SO MUCH
FOR YOUR CONSIDERATION. THANK
YOU SO MUCH, MR. DIRECTOR. WE'RE
GOING TO SEE IF THERE'S
QUESTIONS AND COMMENTS FROM
COMMITTEE AT THIS TIME. MADAM
VICE CHAIR, THE FLOOR IS YOURS.
THANK YOU. MR. CHAIR. GOOD
MORNING, SIR, AND THANK YOU FOR
MEETING WITH ME YESTERDAY. I
KNOW WE WENT OVER SEVERAL
QUESTIONS AND HAD A VERY LENGTHY
CONVERSATION, I DO HAVE SOME
QUESTIONS AND I GOT SOME NEW
QUESTIONS LAST NIGHT FROM
SEVERAL PEOPLE. SO I GUESS WE'LL
JUST START. SO THE CEC, AS YOU
SAID, HAS COLLECTED A TREMENDOUS
AMOUNT OF DATA FROM THE REFINERS
SINCE JUNE OF 2023. AS WE LOOK
AT THAT DATA THAT'S POSTED
ONLINE ON THE CEC WEBSITE,
REPRESENTING THE NET GASOLINE
REFINING MARGIN IN QUOTES, I
GUESS I SHOULD SAY THE MAJORITY
OF THE REFINERS SHOW A NEGATIVE
NET MARGIN FROM OCTOBER THROUGH
FEBRUARY OF THIS YEAR, AND THE
OVERALL VOLUME WEIGHTED IS THE
AVERAGE OF 0.0 $0.02 PER GALLON
SINCE JUNE OF 2023. GIVEN THOSE
FACTS AND THE DATA THAT THE CEC
IS REPORTING ONLINE DOESN'T IT
CONFIRMED YOU THAT REFINERS
MARGINS ARE CYCLICAL AND MOST
COMMODITY, AS MOST COMMODITY
BUSINESSES ARE? AND HOW WILL THE
PROPOSED MARGIN CAP PROTECT
REFINERS ON MONTHS WHERE THEY
LOSE MONIES AND TRY TO OFFSET
THEM WITH MONTHS THAT THEY MAKE
MONEY? THANK YOU, MADAM VICE
CHAIR, AND THANK YOU FOR YOUR
TIME IN THE MEETING. AND I
ENJOYED THAT DISCUSSION VERY
MUCH AS WELL. SO FIRST, I WOULD
REALLY HIGHLIGHT THE FACT THAT
SB ONE TWO IS A NEW PIECE OF
LEGISLATION IN A NEW STATUTE
BEING ENFORCED, AND THERE HAS
BEEN SOME BUMPS IN THE ROAD. I
WOULD IDENTIFY THE NET PROFITS
AS, AS ONE OF THOSE BUMPS AS
WHAT WE'VE SEEN IN THAT DATA IS
THAT THE INDUSTRY IS
INTERPRETING IT VERY DIFFERENTLY
, EVEN AMONGST THE INDUSTRY, SO
THAT THOSE NUMBERS APPEAR TO BE
DIVERGENT EVEN WITHIN
CALIFORNIA'S REFINERIES. AND
THEY DON'T MATCH UP WITH THOSE
SAME REFINERIES ARE REPORTING TO
THE SEC. SO THE COST THAT
THEY'RE REPORTING TO CEC AND THE
COST THAT THEY'RE REPORTING TO
THE SEC ARE VERY DIFFERENT. NOW.
THE SEC REPORTS HAVE OTHER
REQUIREMENTS, INCLUDING, YOU
KNOW, ACCOUNTING PRINCIPLES THAT
ARE ATTACHED TO THEM. SO I THINK
ONE OF THE THINGS THAT WE NEED
TO DO IS TRY AND SYNTHESIZE
THOSE TWO REPORTING STREAMS SO
THAT THE PUBLIC CAN HAVE
CONFIDENCE IN THOSE NUMBERS. AS
WE LOOK AT THE PROFITABILITY OF
THE INDUSTRY, WE DON'T THINK
THAT THE NET PROFIT NUMBERS THAT
ARE BEING POSTED ON THE CEC
WEBSITE ARE FULLY
REPRESENTATIVE, PARTICULARLY
WHEN WE COMPARE THEM TO THE SEC
NUMBERS. BUT THAT'S A PROCESS
THAT NEEDS TO BE IMPROVED. THIS
IS A NEW LAW. SO ONE OF THE
THINGS THAT'S HAPPENING AT THE
AT THE CALIFORNIA ENERGY
COMMISSION IS WE'RE REVISITING
THOSE FORMS, AND I SAY WE DPMO
IS AN INDEPENDENT DIVISION.
WE'RE GIVING INPUT ON THAT
PROCESS. THERE ARE A LOT OF
COLLEAGUES HERE FROM THE CEC AS
WELL, AND WE'RE SUPER
APPRECIATIVE OF THEIR SUPPORT IN
THIS PROCESS. AND SO WE'RE
ENCOURAGING THEM TO IMPROVE THE
FORMS AND WORK WITH INDUSTRY IN
THAT PROCESS IS ONGOING. THANK
YOU. SO YOU'RE SAYING THAT THE
REFINERIES ARE REPORTING
DIFFERENT DOCUMENTS TO THE CEC
THAN THEY ARE FROM THE SEC,
DIFFERENT NUMBERS REGARDING
PROFIT? YES ARE THEY REQUIRED TO
PROVIDE THE THEIR FINANCIAL
STATEMENTS OR ANYTHING THEY
REPORT LIKE, I MEAN, ARE YOU
SAYING THERE'S TWO SETS OF
BOOKS? IS THAT WHAT YOU'RE
SAYING? ON THE FIRST QUESTION, I
MY UNDERSTANDING IS THAT THEY'RE
NOT ACTUALLY SUBMITTING BOOKS
AND RECORDS AT THIS POINT TO THE
CEC TO CONFIRM THOSE NUMBERS.
RATHER, IT'S A IT'S A SORT OF A
FORM THAT YOU SUBMIT WITH
NUMBERS THAT YOU FILL INTO THE
FORM. SO I THINK MAYBE HAVING
THE UNDERLYING RECORDS WOULD,
WOULD HELP, IN TERMS OF MY OWN
ASSESSMENT, I'M, YOU KNOW,
STARTING WITH A FOLLOW THE FACTS
APPROACH. THIS IS A NEW LAW. I
THINK WE NEED TO MAKE SURE FOLKS
UNDERSTAND THE FORMS AND HOW
THEY NEED TO BE FILLED OUT. IF
THEY'RE BEING FILLED OUT
INCORRECTLY, WE NEED TO HAVE
GIVE THEM A CHANCE TO DO IT
CORRECTLY. THANK YOU. SINCE
2020, CALIFORNIA'S LOST TWO
REFINERIES THAT PRODUCED CARB
GASOLINE, WHAT DID THE CEC
ANTICIPATE ON THE IMPACT OF
CONSUMER PRICES WOULD BE? I
MEAN, IF OBVIOUSLY, IF IT'S A
SUPPLY AND DEMAND ISSUE AND
WE'RE LOSING SUPPLY AND THE
DEMAND IS INCREASING, WHAT'S THE
PLAN FOR THE CEC TO MANAGE
FUTURE REFINERY SHUTDOWNS, IF
THE DEMAND STAYS AS HIGH AS IT
IS NOW. AND DO YOU HAVE ANY DO
YOU HAVE ANY OVERSIGHT OVER
THAT? BECAUSE THAT OBVIOUSLY IF
THE SUPPLY IS AFFECTED, IT'S
GOING TO INCREASE GAS PRICES,
WHICH IS GOING TO TRIGGER YOU TO
GO AFTER THE REFINERIES FOR
PRICE INCREASES. BUT IT ACTUALLY
IS JUST A EBB AND FLOW SITUATION
WHERE SUPPLY AND DEMAND MEET THE
RUBBER IN THE ROAD. BEING EIGHT
MONTHS INTO THE JOB, I THINK ONE
THING THAT HAS SURPRISED ME AS
WE'RE LOOKING AT THIS MARKET IS
THAT WITH DEMAND FALLING, WITH
THE ADOPTION OF ZERO EMISSION
VEHICLES, YOU WOULD THINK WE
WOULD HAVE A SURPLUS OF SUPPLY.
BUT IN FACT, THE REFINERIES HAVE
EITHER IN THIS CASE, THEY'VE
CONVERTED TO RENEWABLE DIESEL AT
A RATE WHERE THE PRICES HAVE
STAYED HIGH. AND THAT IS A BIT
OF A SURPRISE, IN TERMS OF THE
CEC, I THINK THEIR ROLE AND
AGAIN, I CAN'T SPEAK FOR THEM
NEW IN THIS ROLE AND PART OF AN
INDEPENDENT DIVISION, BUT AS I
UNDERSTAND IT, THEY'RE NOT
ACTIVELY MANAGING WHICH
REFINERIES CLOSE. THEY ARE
WORKING WITH INDUSTRY AND
UNDERSTANDING WHAT THE
INDUSTRY'S PLANS ARE. AND THERE
ARE SOME REQUIREMENTS THAT
INDUSTRY NOTIFY BY THE CEC, BUT
THAT THE CEC ISN'T GREEN
LIGHTING OR RED LIGHTING. WHAT'S
HAPPENED IN THE LAST THREE
YEARS? THAT'S BEEN THOSE
INDUSTRY, YOU KNOW, PARTICIPANTS
MAKING THEIR CHOICES. YOU SAID
IN YOUR COMMENTS RIGHT NOW THAT
THAT WAS A SURPRISE THAT PEOPLE
ARE CONVERTING, TO A RENEWABLE
SOURCE OF FUELS. IT WAS A
SURPRISE THAT THEY WOULD CONVERT
THAT FAST. I MEAN, OBVIOUSLY, IF
YOU'RE SHUTTING DOWN, IF THE
POLICIES COMING OUT OF THIS
BUILDING ARE SHUTTING DOWN ONE
MECHANISM, A WAY OF MAKING
MONEY, BUT YOU CAN CONVERT THE
PLANT TO ANOTHER MECHANISM, WAY
OF MONEY, WHY WOULD IT SURPRISE
ANYBODY THAT THEY WOULD TRY TO
CONVERT AS FAST AS POSSIBLE TO
GAIN MARKET SHARE OF THE NEW
PRODUCT BEING PRODUCED, THANK
YOU, MADAM VICE CHAIR. MY
COMMENT WAS, SURPRISED THAT
CAPACITY IS COMING OFFLINE IN AS
QUICKLY AS IT HAS IN TERMS OF
KEEPING PRICES HIGH. SO IT'S NOT
A REACTION. YOU KNOW, I THINK IF
YOU LOOK AT THE PROFIT NUMBERS
FROM INDUSTRY IN 2022 AND 2023,
THESE WERE RECORD RECORD HIGH
PROFITS. SO IN A IN AN
ENVIRONMENT WHERE PROFITS ARE
QUITE HIGH, I THINK I WOULD SAY
THIS IS MORE MY PERSONAL VIEW
THAT IT'S SURPRISING THAT THE
REFINERIES HAVE CLOSED AS
QUICKLY AS THEY HAVE WHEN
THEY'RE SO PROFITABLE. AND SO I
THINK, AS WE DIG INTO THE DATA
AND UNDERSTAND THE REFINERIES
OPERATIONS BETTER, ABSOLUTELY.
THE TRANSITIONING TO RENEWABLE
DIESEL IS A POSITIVE IN TERMS OF
HAVING THAT, OPTION AVAILABLE IN
THE MARKET. AND THE SWITCH FROM
MOTOR GASOLINE MEANS THAT WE
HAVE LESS OF IT. SO I THINK WE
NEED TO REALLY BE THOUGHTFUL AS
WE THINK ABOUT POLICIES GOING
FORWARD AND LOOKING AT, OUR
REFINERIES SUPPLY AND THE DEMAND
THAT WE'RE EXPECTING. THANK YOU.
WHAT ARE THE LEGAL RISKS IN THE
STATE FOR UNDERTAKING TRYING TO
REGULATE NON-REGULATED BUSINESS
WITHOUT OFFERING REGULATED
PROTECTIONS FOR OTHER
INDUSTRIES, DOES THE STATE
ANTICIPATE LAWSUITS? WE
DISCUSSED THAT JUST A LITTLE BIT
YESTERDAY, BUT YOU EXPLAINED TO
ME AND JUST EXPLAINED PUBLICLY
ABOUT HOW IT'S THE CEC. WELL,
LET YOU EXPLAIN IT. SO YOU
BASICALLY SAID THE CEC IS NOT
GOING TO SAY YES OR NO, THEY'RE
JUST GOING TO BE NOTIFIED.
BASICALLY, IS WHAT YOU SAID
SOMETHING TO THAT EFFECT? THANK
YOU, MADAM VICE CHAIR. I THINK
THE CONVERSATION YESTERDAY WAS
AROUND, NOTIFICATION OF
MAINTENANCE OF, FOR REFINERIES.
SO AT THIS POINT, THE LAW
REQUIRES THAT THE REFINERY
OPERATORS NOTIFY CEC, BUT THAT
THERE'S NOT A YES OR NO ABOUT
WHETHER THAT THAT REFINERY
MAINTENANCE IS GOING TO TAKE
PLACE. ALTHOUGH POTENTIALLY THE
CEC COULD ADOPT REGULATIONS THAT
IMPOSE RESTRICTIONS ON ON
REFINERY MAINTENANCE OR
TURNAROUND. SO I REALLY CAN'T
SPEAK TO THE LEGAL RISK CALCULUS
OF THAT QUESTION. I WOULD DEFER
TO ATTORNEYS AT THE CEC AT THE
SAME TIME, BECAUSE THERE IS NO
CURRENT, REGULATION, SORT OF
MANDATING THAT TYPE OF RESPONSE
AT THIS POINT. I THINK IT'S JUST
A NOTIFICATION REQUIREMENT.
THANK YOU. SIR, I HAVE A COUPLE
OF QUESTIONS. I'M GOING TO GET
REALLY HARD, I GUESS, AFTER I
THINK PEOPLE FOUND OUT YOU WERE
GOING TO BE HERE TODAY, MY INBOX
KIND OF BLEW UP. SO I DO HAVE A
COUPLE OF QUESTIONS. ONLY
BECAUSE THEY CAME FROM DIFFERENT
SOURCES AND SIMILAR. THE SAME
QUESTIONS. NOT EXACTLY. HAVE YOU
BEEN INSTRUCTED OR ENCOURAGED
DIRECTLY OR INDIRECTLY BY THE
GOVERNOR OF THE CEC,
COMMISSIONERS OR THEIR
REPRESENTATIVE STAFF TO
IMPLEMENT A MAX REFINING MARGIN
AND PENALTY? ARE YOU GOING TO DO
WHAT YOU SAID AND FOLLOW THE
FACTS? SO THE FIRST QUESTION, NO
. OKAY. TO THE SECOND QUESTION,
YES. THANK YOU. THEN NUMBER TWO,
DO YOU HAVE ANY KNOWLEDGE OR
REASON TO BELIEVE THAT THE
GOVERNOR OR THE CEC
COMMISSIONERS ALREADY INTEND TO
IMPLEMENT A MAX REFINING MARGIN
PENALTY TO IS GOING TO BE
ESTABLISHED? IS THAT
CONVERSATION THAT'S TAKING
PLACE, OR ARE WE GOING TO WAIT
TILL THE DATA IS IN AND YOU
PURSUE THE FACTS? I WAS ON THE
DAIS IN APRIL AT A PUBLIC
WORKSHOP DISCUSSING THE
POTENTIAL PENALTY, AND WE'VE
TALKED ABOUT AND STRESSED VERY
MUCH SO THAT THIS NEEDS TO BE A
PUBLIC PROCESS AND THAT THAT
DISCUSSION ABOUT THE PENALTY,
HOW IT MIGHT AFFECT FOLKS
INCENTIVES, HOW IT NEEDS TO
BLUNT PRICE SPIKES AND ENCOURAGE
REFINERS TO BRING IN MORE
SUPPLY. THESE ARE THE ISSUES
THAT ARE GOING TO DETERMINE
WHETHER OR NOT THE PENALTY IS
ENACTED. AND SO I THINK, AGAIN,
FROM MY PERSPECTIVE, WE'RE GOING
TO FOLLOW THE FACTS. AND I'M
AWARE OF NO ONE PREJUDGING THE
OUTCOME. THANK YOU. DO YOU
ANTICIPATE THAT IF THERE IS A
PENALTY APPLIED THAT THAT'S JUST
GOING TO INCREASE COST
CONSUMERS? I DO NOT YOU DO NOT.
AND I'LL EXPLAIN THAT. FIRST,
THE PROCESS OF CONSIDERING THE
PENALTY BY STATUTE IS SUPPOSED
TO CONSIDER WHETHER OR NOT THAT
WOULD HAPPEN. SO I THINK HOW
IT'S DEVISED WOULD AND SHOULD
TAKE THAT INTO ACCOUNT. AND I
THINK CONSUMERS SHOULD I THINK,
FEEL CONFIDENT THAT THE PROCESS
WILL BE GUIDED BY THE DATA, BY
ECONOMISTS, BY BY PROFESSIONALS
IN THIS SPACE, SOME, SOME FOLKS
WHO ARE BEING VERY THOUGHTFUL
ABOUT IT. AND THAT I THINK DPMO
WILL ONLY SUPPORT A PENALTY IF
THE PENALTY DOES 1 OR 1 OF TWO
THINGS INCENTIVIZE FOLKS TO
BRING IN MORE SUPPLY AND SELL
MORE VOLUME OF GASOLINE OR
RECOUP FROM PRICE GOUGING, AND
THEREFORE GET MONEY BACK FOR
CONSUMERS, SO TO BENEFIT IN ONE
OF TWO WAYS. AND IF IT DOESN'T
DO THAT, WE WILL NOT BE
SUPPORTING IT. SO I MEAN, WE
TALKED A LITTLE BIT ABOUT SUPPLY
CHAIN YESTERDAY BECAUSE
OBVIOUSLY THE ROOT CAUSE
ANALYSIS, THE ROOT CAUSE IS THE
LACK OF SUPPLY BECAUSE
REFINERIES ARE CLOSING DOWN OR
LEAVING THE STATE. WE JUST LOST
A MAJOR ONE, I GUESS MY QUESTION
IS, IS THAT, THE SHORTEST SUPPLY
ROUTE IS A TO B, NOT A TO Z. A
TO B WOULD BE, I DON'T KNOW,
ARROW TO PB AND A PIPELINE JUST
A FEW MILES LONG AND THEN
PRODUCING FUEL, BUT WE HAVE
CREATED A POLICY OR THIS BODY
HAS CREATED A POLICY TO BRING,
CRUDE AND NOW REFINED FUEL BACK
FROM INDONESIA, JAPAN, IRAQ, YOU
KNOW, JUST NAME IT. ECUADOR,
THERE'S A PORT CAPACITY. THERE'S
A LONGER SUPPLY CHAIN. I GUESS
WHEN YOU COMPARE OUR GAS PRICES
TO TEXAS, WHERE IT'S $3 A
GALLON, 325 A GALLON, AND HERE
IT'S MUCH HIGHER THAN THAT. THE
RESPONSE I GET BACK IS IT'S ALL
ABOUT SUPPLY FROM CEC. AND A
LITTLE BIT IN THE CONVERSATION
YESTERDAY THAT TEXAS HAS A
GREATER SUPPLY, WE COULD HAVE A
GREATER SUPPLY IF WE DIDN'T
LIMIT THE SUPPLY. SO WE'RE
PURPOSELY I FEEL LIKE WE THE
BODY, THIS BODY HAS CREATED THE
PROBLEM OF LIMITED SUPPLY AND
LIMITED REFINERY CAPACITY. AND
NOW WE'RE LIKE, OH MY GOSH, IT'S
THE REFINERY CAPACITY. IT'S
REFINERIES THAT ARE DOING THIS
ALL THAT TO SAY THAT SBX ONE TO
ADDRESS THE, THE CRUDE, YOU
KNOW, THE PRODUCERS AND THEN THE
REFINERY PIECE, THE JOBBERS AND
THE RETAIL PIECE, WHICH, YOU
HAVE AUTHORITY OVER TO GO AFTER
IF THERE'S PRICE GOUGING OR
PRICE INFLATION, ARTIFICIAL
PRICE, PRICE INFLATION, IN SP
ONE TWO AND I'VE ASKED THIS
QUESTION SEVERAL TIMES,
PRODUCERS IN KERN COUNTY ARE
REPRESENT 70% OF THE STATE'S OIL
AND GAS, 53% OF THE STATE'S
RENEWABLE ENERGY. BUT IN THE OIL
AND GAS INDUSTRY, MILO RANDOM
OIL COMPANIES DON'T SET THE
PRICE. THEY'RE PRICE TAKERS. IF
THE GLOBAL MARKET IS TRADING AT
$80 A BARREL, THEY SELL IT $80 A
BARREL. IT'S $120 A BARREL. THEY
SELL IT $120 A BARREL. HOW DO
YOU ANTICIPATE, PRICE TAKERS OR
WHAT'S YOUR THOUGHT PROCESS
ABOUT PRICE TAKERS BEING IN THIS
PIECE OF LEGISLATION AS SOMEBODY
COULD POTENTIALLY BE PRICE
GOUGING WHEN THEY TAKE THE PRICE
FROM A GLOBAL MARKET AND HAVE NO
CONTROL OVER IT, THANK YOU,
MADAM VICE CHAIR. I THINK THERE
WAS A LOT PACKED INTO THAT
QUESTION. I THINK, STARTING WITH
WITH THE LAST POINT ABOUT PRICE
TAKERS VERSUS PRICE MAKERS, I
THINK IN THIS CONTEXT, WE HAVE
TO DIFFERENTIATE BETWEEN SMALL
INDEPENDENT OIL PRODUCERS AND
KERN COUNTY AND THE FOUR MAJOR
REFINERIES THAT OWN OVER 90% OF
THE REFINING CAPACITY IN
CALIFORNIA. AND SO AS WE'VE
STARTED TO ANALYZE THIS, AND
WE'RE STILL IN THE EARLY DAYS OF
LOOKING AT THE DATA, WE'RE
SEEING EXCESSIVE PROFITS IN THE
IN THE REFINING INDUSTRY IN
CALIFORNIA. AND WHAT THAT MEANS
IS PROFITS ABOVE WHAT THE
COMPETITIVE MARKET WOULD
NORMALLY PROVIDE. SO ONE OF THE
REASONS WHY CALIFORNIA'S GAS
PRICES ARE HIGHER THAN GAS
PRICES IN TEXAS IS THAT THERE'S
A MUCH LARGER INDUSTRY MARGIN.
THE AMOUNT OF MONEY THAT'S GOING
TO THE INDUSTRY AS A RESULT OF
THEIR REFINING, DISTRIBUTING AND
SELLING AT RETAIL GAS. IT'S MUCH
HIGHER WHEN YOU COMPARE THOSE
NUMBERS. SO IF WE LOOK AT WHERE
HIGHER WHERE SO COMPARE THEM, SO
, SO, HIGHER IN THE, IN THE
REFINING. IT'S CALLED THE
REFINING MARGIN OR CRACK SPREAD.
OKAY. IT'S HIGHER IN CALIFORNIA
THAN IT IS IN THOSE OTHER
STATES. SO JUST SOME DATA. LOOK,
THIS MORNING AT THE TRIPLE A
WEBSITE, THE AVERAGE COST IN IN
CALIFORNIA TODAY IS $5.41 A
GALLON. THE NATIONAL AVERAGE IS
$3.66 A GALLON. SO WE'RE PAYING
$1.75 MORE PER GALLON. THE PRICE
IN CALIFORNIA WENT UP RELATIVE
TO THE NATION IN THIS LAST
MONTH, BUT NOTHING IN OUR SORT
OF POLICIES OR THE GAS TAX. NONE
OF THAT CHANGED. WHAT CHANGED IS
THE INDUSTRY PROFIT WENT UP IN
THAT TIME PERIOD, AND SO IT WENT
UP, THE CÁC HAS A GASOLINE PRICE
DASHBOARD WHERE YOU CAN LOOK
EVERY WEEK AND SEE WHERE WHEN
YOU FILL UP ON GAS, THAT MONEY
GOES. AND SO THAT INDUSTRY
MARGIN WENT UP $0.42 BETWEEN
MARCH AND APRIL. AND NOW STANDS
AT $1.66. SO THAT'S, YOU KNOW,
ONE OF THE REASONS WE ALSO HAVE
CLEANER BURNING GASOLINE, WHICH
IS IN PART AN INVESTMENT IN
PUBLIC HEALTH. WE ALSO HAVE
GASOLINE TAXES, WHICH IS AN
INVESTMENT IN INFRASTRUCTURE,
WHEREAS, YOU KNOW, THESE PROFITS
ARE REALLY PROFITS THAT GO TO
THE, TO THE, YOU KNOW, TO THE
PRIVATE SECTOR, TO THE
EXECUTIVES, TO THE SHAREHOLDERS.
SO YOU SAID THE DIFFERENCE
BETWEEN THE COST OF, THE
NATIONAL AVERAGE PLUS CALIFORNIA
AT 541 VERSUS I THINK YOU SAID
366 OR 365 IS $1.60 OUT OF THAT
DOLLAR 60. DO YOU KNOW HOW MUCH
OF THAT IS GAS TAXES FUEL,
UNDERGROUND FUEL STORAGE
SUPPLIES? LIKE WHAT'S THE COST
THAT STATE OF CALIFORNIA IMPOSES
, IMPOSES ON THAT GALLON OF GAS,
SO I BELIEVE IT'S 50 $0.50,
MAYBE $0.58. OKAY. AND OTHER
STATES HAVE GAS TAXES AS WELL,
AND MATH WAS NEVER MY STRONG
SUIT. I WAS MORE OF A, YOU KNOW,
A SOCIAL SCIENCES AND LAW TYPE
PERSON. BUT, YEAH, I THINK OUR,
OUR, OUR THE NUMBERS I DID THIS
MORNING WAS $1.75 HIGHER. IS
THERE A STATUTORY REQUIREMENT
OUT THERE THAT SAYS THE
COMMISSION SHALL NOT SET, A
MAXIMUM GROSS GASOLINE REFINING
MARGIN OR ACCOMPANYING PENALTY
UNDER SUPER, SUBDIVISIONS B AND
C, RESPECTIVELY, UNLESS IT FINDS
THAT LIKELY BENEFITS CONSUMERS
THAT OUTWEIGH THE POTENTIAL COST
TO CONSUMERS. IF THAT'S OUT
THERE, DOES SB ONE TWO SUPERSEDE
THAT PIECE OF LEGISLATION OR
THAT CODE SECTION, I, I THINK
THE LANGUAGE THAT YOU'RE QUOTING
IS, IS RELATED TO SB ONE TWO.
YOU KNOW, BUT WE COULD FOLLOW UP
AND TALK ABOUT THE SPECIFICS OF
THAT, THAT REFERENCE. I DO
BELIEVE THAT SB 1-2, WHICH IS
NOW THE GAS PRICE GOUGING AND
TRANSPARENCY LAW, AS IN STATUTE,
DOES REQUIRE A CONSIDERATION OF
BENEFIT TO CONSUMERS. AND SO I
DON'T THINK IT'S GOING TO MOVE
FORWARD UNLESS THE ENERGY
COMMISSION MAKES THAT FINDING.
AND THAT'S PART OF THAT PUBLIC
WORKSHOP. AGAIN, DPMO GIVES
INPUT. IT'S NOT THE PENALTY IS
NOT SOMETHING THAT'S UNDER OUR
CONTROL, BUT WE GIVE INPUT ON
THAT PROCESS. DO YOU THINK THAT
SETTING LIKE A, LIKE A I DON'T
KNOW, LIKE A STATE GAS PRICE IS
GOING TO BE BENEFICIAL? IF
THAT'S ONE OF THE SOLUTIONS THAT
COMES UP WITH? AND IS THAT
SOMETHING THAT YOUR DEPARTMENT
WOULD PURSUE IF THEY EXCEEDED
THAT GAS PRICE? MADAM VICE
CHAIR, I DON'T HAVE ANY
FAMILIARITY WITH THAT PROPOSAL.
I DON'T BELIEVE THAT'S PART OF
THE PENALTY FRAMEWORK. BUT
WHAT'S HAPPENING RIGHT NOW IS
THAT THERE IS A REQUEST FOR
INFORMATION TO STAKEHOLDERS, TO
INTERESTED PARTIES, AS THE
CALIFORNIA ENERGY COMMISSION
CONSIDERS A POTENTIAL PENALTY
FRAMEWORK TO FOR FOLKS TO GIVE
INPUT ON WHAT A FRAMEWORK SHOULD
LOOK LIKE. SO IF THAT'S ONE OF
THE PROPOSALS, PERHAPS DPMO
WOULD WEIGH IN ON THAT AND GIVE
INPUT. BUT AT THIS POINT, THAT'S
NOT SOMETHING I'M FAMILIAR WITH.
OKAY. THANK YOU. THANK YOU, MR.
CHAIR, FOR ALLOWING ME TO ASK
THOSE QUESTIONS. THANK YOU SO
MUCH. PLEASE SEN. THANK YOU. I
APPRECIATE THE MEETING AND, I
ALSO HAVE ALREADY COMMUNICATED
SINCE I WAS COMMUNICATING ANYWAY
WITH THE PRESIDENT OF CABRILLO
COLLEGE TO LET HIM KNOW THAT A
FORMER STUDENT IS DOING QUITE
WELL AND HOPEFULLY THEY WILL
TAKE ADVANTAGE OF THAT AT SOME
POINT. AND I WANTED TO SORT OF
TALK A LITTLE BIT ABOUT WHERE
YOU JUST WERE, BUT IN A
DIFFERENT WAY, BECAUSE WHEN WE
WERE DISCUSSING THIS BILL THAT
CREATED THE POSITION, THE ONE
PLACE THERE WAS A LOT OF
CONSENSUS CGRTS AMONG PEOPLE IN
THE LEGISLATURE WAS THAT WE
NEEDED THE FACTS AND WE NEEDED A
PROCESS TO GET TO THE FACTS. A
LOT OF PEOPLE WERE ADVANCING TO
COMING TO A CONCLUSION. THERE
NEEDED TO BE. SO HERE YOU ARE.
YOU HAVE TO STAND UP AN AGENCY,
AND YOU HAVE TO DECIDE WHAT THE
WAYS ARE. YOU GET IT. THE FACTS
TO BE ABLE TO CONVINCE
STAKEHOLDERS IN THE PUBLIC OF
WHAT'S REALLY GOING ON. BECAUSE
THAT WASN'T APPARENT IN THE
DISCUSSION ABOUT THE BILL. SO AS
A LAY PERSON, HOW WOULD YOU WALK
ME THROUGH THE HOW YOU ARE GOING
TO LOOK AT THE DIFFERENT FACTS
THAT ARE LAID OUT HERE TO GET TO
A CONCLUSION? I SUSPECT YOUR
KIDS ARE LAYPERSONS TOO, SO THEY
MIGHT ENJOY THIS EXPLANATION,
BUT THAT HAS BEEN THE PUZZLE TO
ME AND THAT'S WHY I ENJOYED OUR
TALK. YOU STARTED TO GET INTO IT
, BUT HOW WILL YOU DO THIS,
WELL, THANK YOU FOR THAT
QUESTION, SENATOR LAIRD AND I
ENJOYED OUR MEETING AS WELL.
AND, CABRILLO COLLEGE IS A
JUNIOR COLLEGE IN THE SANTA CRUZ
AREA. I'M PROUD THAT I GRADUATED
THERE BEFORE I OR GOT AN
ASSOCIATE'S DEGREE, BEFORE I
TRANSFERRED TO UC BERKELEY FOR
UNDERGRADUATE, BEFORE LAW
SCHOOL. PART OF MY STORY IN
PUBLIC EDUCATION AND WHY I'M SO
GRATEFUL IS, YOU KNOW, PELL
GRANTS, CAL GRANTS AND GOING TO
INSTITUTIONS LIKE RIO COLLEGE,
YOU KNOW, IN THIS WAY, I THINK
AS THE CONVERSATION WITH THE
VICE CHAIR ILLUSTRATED, WE NEED
TO SHOW FOLKS WHERE THE MONEY
GOES. AND I THINK THE
TRANSPARENCY MEASURES IN SB 1-2
KIND OF DO THAT, YOU KNOW, IN A
NEW WAY. SO IF, IF THE IF THE
COST OF GASOLINE IS SO MUCH
HIGHER, I THINK THE PUBLIC WANTS
TO KNOW WHERE'S MY MONEY GOING.
AND SO FOR THE GAS TAX THAT'S
PUBLICLY KNOWN, RIGHT, I THINK I
THINK $0.58 WAS RIGHT. BUT IT'S
IN THAT NEIGHBORHOOD. AND THAT'S
AN INVESTMENT IN PUBLIC
INFRASTRUCTURE. RIGHT. THAT'S A
POLITICAL DECISION, A POLICY
DECISION. OUR ELECTED LEADERS
DECIDE AND FOLKS CAN KNOW WHERE
THAT MONEY IS GOING. BUT I THINK
UP UNTIL VERY RECENTLY, FOLKS
HAD NO IDEA WHERE THE MONEY WAS
GOING FOR THE INDUSTRY. AND SO
WE SAW CHEVRON, ONE OF THE MOST
PROFITABLE COMPANIES, WITH
RECORD PROFITS IN 2022 WHEN WE
HAD THE GASOLINE PRICE SPIKES
OVER $30 BILLION. AND SO I THINK
IT'S RIGHT FOR THE PUBLIC TO
ASK, WELL, WHEN THESE GAS PRICES
GO UP, WHERE IS THAT MONEY
GOING. SO PART OF WHAT WE'RE
DOING IS UNCOVERING THOSE FACTS
AND PROVIDING SOME OF THAT
TRANSPARENCY. I THINK IT'S
REALLY IMPORTANT FOR THE FOR THE
PUBLIC TO KNOW WHERE THAT MONEY
IS GOING AND UNDERSTAND WHY
THAT'S HAPPENING. AND SO AS A
PROSECUTOR, YOU KNOW, YOU ALWAYS
HAVE TO HAVE THE FACTS BEFORE
YOU LAY OUT ANY SORT OF
DISCUSSION OR ARGUMENT. AND SO
WHAT'S SO, SO GREAT ABOUT THE
BILL, THE STATUTE. AND ONE OF
THE REASONS WHY I ACCEPTED THE
POSITION IS WE'RE EMPOWERED TO
GET THE FACTS AND TO SURFACE THE
FACTS FOR THE PUBLIC. AND WHAT
IT, AND PRACTICALLY, WHAT DOES
THAT MEAN? SO BECAUSE YOU WERE
TALKING ABOUT REFINERIES,
TALKING ABOUT SUPPLY, WHAT DO
YOU ASSESS IN SORT OF WHAT
SEQUENCE TO DECIDE THAT YOU ARE
GETTING TO THE FACTS AND YOU CAN
CONVINCE ALL OF US TO COME TO
SOME KIND OF CONCLUSION BASED ON
. SO WE'RE EARLY IN THE PROCESS
AGAIN. BUT IN THE APRIL
WORKSHOP, OUR OUR ECONOMIST GIGI
MORENO PRESENTED DATA I DON'T
THINK ANYONE HAS ANALYZED BEFORE
AT LEAST OR AT LEAST DISCUSSED
PUBLICLY, WHICH IS HERE'S THE
INDUSTRY MARGIN AT THE REFINERS,
AND HERE'S HOW IT COMPARES TO
BACK BEFORE, THERE WAS AN
EXPLOSION AT A TORRANCE REFINERY
AND PRICES STARTED GETTING MUCH
MORE EXPENSIVE IN CALIFORNIA
BECAUSE THEY USED TO BE A LOT
MORE, YOU KNOW, A LOT CLOSER TO
THE NATIONAL AVERAGE. AND SO IT
TURNS OUT THAT DURING PRICE
SPIKES, THE INDUSTRY PROFITS ARE
UP 200. SO WE'RE STARTING TO
SHOW THAT. BUT THAT'S AN
ECONOMIST. AND THOSE ARE CHARTS.
AND THOSE ARE SOMETIMES HARD TO
FOLLOW. SO ONE OF THE THINGS
THAT WE'RE WORKING WITH THE CEC
TO DO IS POTENTIALLY TO IMPROVE
THAT GASOLINE DASHBOARD I
MENTIONED, WHERE FOLKS CAN SEE
WHERE THE MONEY IS GOING. AND TO
REALLY HIGHLIGHT IN A WAY THAT'S
DIGESTIBLE FOR THE PUBLIC. OKAY,
GAS PRICES WENT UP THIS WEEK OR
THEY WENT DOWN THIS WEEK. HOW
MUCH OF THAT IS PROFIT TO THE TO
OIL COMPANIES? AND SO WE NEED
SOME VERY PUBLICLY ACCESSIBLE
TOOLS IN ORDER TO, TO SHOW FOLKS
WHERE THE MONEY IS GOING AND
WHAT YOU JUST MENTIONED. AND,
AND YOU HAD AN EXCHANGE WITH
SENATOR GROVE, IS THE ROLE OF
REFINERIES AND WE KNOW WE HAVE
TWO THAT ARE TRANSITIONING OUT
TO MORE GREENER STUFF. AND THEN
YOU HAVE REFINERIES WHERE
THERE'S EITHER A TORRANCE
INCIDENT OR THEY'RE DOWN FOR
MAINTENANCE. HOW DOES ALL THAT
FACTOR IN? AND IS SHOULD THERE
BE I MEAN, IS THAT A PLACE WHERE
AT SOME POINT THE LEGISLATURE
MIGHT CONCLUDE THAT THERE'S SOME
REGULATIONS ABOUT SCHEDULING,
MAINTENANCE OR SOME OF THE OTHER
THINGS THAT ACTUALLY ARE VERY
MUCH TIED TO PRICE SPIKES. HOW
DO YOU GET AT THAT IN WHAT
YOU'RE DOING? SO IN JANUARY, THE
NEW DIVISION PUT OUT POLICY
PROPOSALS IN RESPONSE TO A
DIRECTIVE FROM GOVERNOR NEWSOM.
AND WHAT WE ARE PROPOSING IS
THAT WHAT WILL HELP BLUNT THE
PRICE SPIKES, MITIGATE THE PRICE
SPIKES IS WE NEED MORE SUPPLY TO
BUFFER THE STATE WHEN THE
REFINERIES GO OFFLINE, BECAUSE
IT'S LARGELY THE REFINERIES THAT
CHOOSE WHEN THEY GO OFFLINE FOR
THESE MAINTENANCE EVENTS. SO
THERE'S BOTH PLANNED AND
UNPLANNED MAINTENANCE, RIGHT.
AND SO IF YOU'RE IF YOU'RE
PLANNING YOUR MAINTENANCE, WE'RE
SAYING YOU SHOULD HAVE A
RESUPPLY OBLIGATION. YOU'RE
PLANNING TO TAKE THIS VERY BIG
COMPLEX REFINERY OFFLINE AND
IT'S PROBABLY FOR VERY NECESSARY
MAINTENANCE. THAT'S GREAT. ARE
YOU GOING TO BE, YOU KNOW,
BUFFERING THE STATE BY HAVING
ENOUGH INVENTORY Kò OR BRINGING
IN OTHER SUBSTITUTE SUPPLY AND
USING THE SP 1-2 TRANSPARENCY
TOOLS, WE WERE ABLE TO LOOK AT
THE REFINERIES REPORTS, BECAUSE
NOW THEY HAVE TO TELL THE CEC IF
THEY'RE DOING THAT, BRINGING IN
RESUPPLY AND THEY WEREN'T
BRINGING IN SUFFICIENT RESUPPLY
TO PROTECT THE STATE. AND THAT'S
ONE OF THE REASONS WHY WE HAD A
PRICE SPIKE. SO WE ARE PROPOSING
OBLIGATIONS ON ON RESUPPLY AND
ON INVENTORIES. THERE IS A
WORKSHOP ON MAY 23RD THAT'S BEEN
SCHEDULED THAT THAT'S A
TENTATIVE DATE, BUT THAT'S THE
DATE AS I UNDERSTAND IT, THAT
WILL LOOK AT THE SUPPLY
CONDITIONS AND CONSIDER RESUPPLY
AND INVENTORY AS PART OF A
LARGER PICTURE, I WOULD DEFER TO
MY COLLEAGUES AT THE CEC IN
TERMS OF ANALYZING THEIR OWN
STATUTORY AUTHORITY. FROM DPM'S
PERSPECTIVE, IT DOES APPEAR THAT
SB 1-2 ALREADY ADDRESSES THE
POTENTIAL NEED TO IMPOSE
REQUIREMENTS ON REFINERIES
RELATED TO MAINTENANCE. AT THE
SAME TIME, EXPLICIT STATUTORY
AUTHORITY COULD BE HELPFUL BOTH
AS TO RESUPPLY REQUIREMENTS AND
ESPECIALLY TO INVENTORY
REQUIREMENTS AND JUST FOR THE
RECORD, YOU SAID YOUR COLLEAGUES
AT CEC, YOU'RE INDEPENDENT, BUT
YOU'RE NESTED WITHIN CEC,
CORRECT? THAT'S ABSOLUTELY
RIGHT. AND THEN TO FOLLOW UP ON,
WHAT YOU WERE JUST TALKING
ABOUT, IS THERE A TIME AT WHICH
YOU THINK THERE MIGHT BE AN
ISSUE ABOUT MORE REFINING
CAPACITY? AND THAT IS SOMETHING
THAT'S ON THE TABLE OR, OR ARE
WE BEING SO SUCCESSFUL IN THE
ELECTRIC CARS AND OTHER THINGS
THAT THE REFINING CAPACITY IS
MATCHING WHERE THE DEMAND IS AND
THE CHANGE IN TYPE OF CARS WE
HAVE HERE? SO I WOULD I WOULD
DEFER HERE TO COLLEAGUES AT THE
ENERGY COMMISSION. AND AGAIN, WE
ARE INDEPENDENT, A DIVISION
WITHIN THE CEC, WHICH MEANS WE
GET TO MAKE OUR OWN DECISIONS
ABOUT INVESTIGATIONS AND
POTENTIAL REFERRALS FOR
PROSECUTION. SO WE DON'T HAVE TO
RELY ON THE CEC FOR THAT. BUT
I'M VERY HAPPY TO CALL THEM MY
COLLEAGUES BECAUSE WE'VE GOTTEN
GREAT SUPPORT FROM THE CEC. AND
THEY'RE THEY HAVE DEEP EXPERTISE
IN THIS FIELD. SO PART OF THE
TRANSPORTATION FUELS ASSESSMENT
THAT WAS JUST PUBLISHED LOOKS AT
LONG TERME MODELS OF SUPPLY AND
DEMAND. AND YOU KNOW, CRYSTAL
BALLS. CRYSTAL BALLS ARE HARD TO
CONSTRUCT. AND I DON'T THINK I
THINK THAT REPORT CONSIDERS
DIFFERENT ALTERNATIVE SCENARIOS.
AND SO AT THIS POINT, I THINK
THERE'S A PATHWAY CALIFORNIA IS
STILL THE THIRD AS OF 2021.
THAT'S THE MOST RECENT DATA I
COULD FIND ON GLOBAL IS THE
THIRD LARGEST MARKET FOR
GASOLINE IN THE WORLD. SO IT
GOES TO THE UNITED STATES, CHINA
AND THEN CALIFORNIA. SO MORE
THAN RUSSIA, MORE THAN AUSTRALIA
AND THE UNITED KINGDOM COMBINED.
SO THE FACT IS THAT WE STILL
HAVE A VERY SIGNIFICANT AMOUNT
OF DEMAND FOR GASOLINE, ALTHOUGH
IT IS DECLINING. SO I THINK,
THERE'S NO REASON WHY IN-STATE
REFINERIES CAN'T CONTINUE TO BE
PROFITABLE. BUT PERHAPS NOT AT
RECORD LEVELS AND BE PART OF
SERVING THAT DEMAND EVEN AS WE
START TO TRANSITION TO MORE ZERO
ZERO EMISSION VEHICLES. AND I DO
TEASE THE VICE CHAIR REGULARLY,
AND I'M SORRY SHE'S NOT HERE
BECAUSE I WOULD INFORM YOU IN
YOUR COMPARISON TO OTHER STATES
AND COUNTRIES THAT HAVE KERN
COUNTY, WHERE ITS OWN STATE,
IT'D BE THE FOURTH LARGEST OIL
PRODUCING STATE IN THE UNITED
STATES. AND SHE HAS LET US KNOW
THAT REGULARLY. AND THEN MAYBE A
LAST QUESTION, BECAUSE I CAN SEE
THE CHAIR SORT OF LOOKING IN MY
DIRECTION. AND THAT IS, IS YOU
ARE STARTING FROM SCRATCH, I
IMAGINE THAT YOU WERE CLOSE TO
THE ONLY PERSON IN YOUR DIVISION
WHEN YOU WERE APPOINTED. NOW,
HOW WITH ALL THE GOALS THAT
WE'VE BEEN TALKING ABOUT, DO YOU
DO THE ADMINISTRATIVE STUFF OF
STANDING UP TO STAFF, MAKING
SURE YOU HAVE PEOPLE IN THE
RIGHT PLACES, MAKING SURE THAT
YOU CAN MEET THE TIME FRAMES
THAT ARE EXISTING HERE? HOW'S
THAT GOING? BECAUSE YOU'RE, AN
ATTORNEY. BUT UNFORTUNATELY, IN
THIS CASE, YOU'RE GOING TO
BECOME AN ADMINISTRATOR IN SOME
WAYS, THANK YOU FOR THAT
QUESTION, SENATOR, YES, I WAS
EMPLOYEE ONE OR EMPLOYEE ZERO,
DEPENDING ON HOW YOU WANT TO
COUNT IT, AND WE'VE BEEN
BUILDING THE STAFF. I'M VERY
GLAD THAT WE'VE BUILT A
LEADERSHIP TEAM. WE HAVE AN
OPERATIONS MANAGER, A CHIEF
ECONOMIST, A DIVISION CHIEF.
WE'RE ONBOARDING TWO FORMER
PROSECUTORS TO BE ENFORCEMENT
ATTORNEYS AND ASSISTANT DISTRICT
ATTORNEY AND A DEPUTY DISTRICT
ATTORNEY WILL EVENTUALLY HAVE A
STAFF OF TEN. AND IN THIS
TRANSITION PERIOD, I'VE GOTTEN
GREAT SUPPORT FROM AGAIN, CÁC
COLLEAGUES, BUT ALSO CARB CDTFA
OTHER STATE AGENCIES HAVE BEEN
INCREDIBLY GRACIOUS, EVEN
LOANING US PEOPLE TO DO WORK,
SORT OF ON SECONDMENT UNTIL WE
COULD STAFF UP AND SO WE HAVE
HAD TO HIT THE GROUND RUNNING.
AND THAT'S BEEN A CHALLENGE. AND
MY FAMILY HAS BEEN VERY
SUPPORTIVE IN THAT PROCESS. AND
I'M GLAD THAT I'M NO LONGER ONE
OF THEM IS POINTING HIMSELF OUT.
YEAH. AND SO AND SO WE ARE WE
ARE GROWING. WE ARE HIRING, AND
WE'RE LOOKING FORWARD TO
BUILDING. AND THEN I'D MAKE A
FINAL COMMENT. AND THAT IS
THERE'S A LOT OF THIS WAS
COUCHED IN TERMS OF YOUR
REGULATORY OR EVEN POTENTIALLY
PROSECUTORIAL ROYAL DUTIES. BUT
A LOT OF THIS IS ABOUT EDUCATING
THE PUBLIC AND STAKEHOLDERS
ABOUT WHAT YOU'RE FINDING. AND I
THINK IT'S VERY IMPORTANT THAT
THAT HAPPEN IN THE PROCESS, NOT
JUST BECAUSE WE READ ABOUT A
CITATION OR PENALTY. IT'S THE
PUBLIC. A LOT OF THIS CAME FROM
THE PUBLIC ASKING WHY. AND SO WE
HAVE TO FIGURE OUT A WAY THAT WE
ANSWER THAT QUESTION. SO THANK
YOU. THANK YOU FOR INDULGING ME,
MR. CHAIR. AND I REALLY
APPRECIATE THE EXCHANGE. THANK
YOU SO MUCH. THANK YOU, SENATOR
LAIRD. WE'RE GOING TO GO TO
SENATOR EGGMAN AND SENATOR
JONES. THANK YOU VERY MUCH. AND
NICE TO SEE YOU AGAIN, SO WE
TALKED A LITTLE BIT ABOUT THIS
IDEA AROUND, INFORMING THE
PUBLIC AND HOW DO WE MAKE THINGS
MORE TRANSPARENT? AND WHAT DOES
THAT MEAN FOR THE AVERAGE PERSON
WHO DOESN'T EVEN KNOW THAT WE'VE
SET UP THIS NEW AGENCY, AND SO
I, I, I GENERALLY WORK IN THE
AREA OF MENTAL HEALTH. AND SO WE
PASS SOMETHING A COUPLE YEARS
AGO CALLED THE CARE ACT, WHERE,
AS THE GOVERNOR WOULD SAY, IT
BRINGS IN ALL ARMS OF GOVERNMENT
TO BE ABLE TO ASSIST A CLIENT.
BUT IT'S THE JUDGE, IT'S THE
PUBLIC DEFENDER. IT'S A
SUPPORTER, IT'S A FAMILY MEMBER
IN THE COUNTY. SO WOULD YOU
TALKED ABOUT THIS AGENCY BEING
BRINGING IN ALL THE ARMS OF
GOVERNMENT? HOW DO YOU SEE ALL
THOSE WORKING TOGETHER AND WHO'S
THE CLIENT. SO I JUST WANT TO
AGREE AND THANK YOU FOR THE
DISCUSSION. WE HAD ABOUT THE
NEED TO INFORM THE PUBLIC. AND I
THINK IT'S SOMETHING WE'RE
GIVING A LOT OF THOUGHT TO,
WE'VE DONE SOME PUBLIC
COMMUNICATIONS AROUND A PUBLIC
LETTER IN SEPTEMBER AND THEN
POLICY PROPOSALS IN JANUARY, BUT
WE NEED TO DO EVEN MORE OF THAT.
AND SO I MENTIONED A WHOLE OF
GOVERNMENT APPROACH. I MEAN, I
THINK, WORKING WITH CEC, WITH
WITH THE AIR RESOURCES BOARD AS
WELL, WITH, WITH CDTFA, WE NEED
FORCE MULTIPLIERS AND IT NEEDS
TO BE A WHOLE OF GOVERNMENT
APPROACH. AND, YOU KNOW, I THINK
I THINK IT'S IMPORTANT TO
RECOGNIZE THAT WORKING WITH
INDUSTRY IS PART OF THIS AS
WELL, WE, I THINK SENATOR LEAHY
TALKED ABOUT HOW YOU COMMUNICATE
THIS WITH WITH MY CHILDREN,
WE'VE TALKED A GOOD AMOUNT. AND
ONE OF THE THINGS THAT MY SON
HENRY TALKED ABOUT IS UNFAIR
PROFITS. WELL, WELL, OKAY. ARE
THEY MAKING UNFAIR PROFITS? AND
I THINK THE IDEA IS, YOU KNOW,
BUSINESS NEEDS A PROFIT
INCENTIVE. AND IT HAS TO BE A
PROFIT INCENTIVE INCENTIVE
THAT'S CONSISTENT WITH RETURN ON
INVESTMENT. BUT IN OTHER STATES
OR IN OTHER, YOU KNOW, REGIONS
TAKING INTO ACCOUNT CALIFORNIA
SPECIFIC TAXES OR COSTS OR WHAT
HAVE YOU, SO IT'S WE NEED TO BE
IN A, IN A, IN A TRUST BUT
VERIFY RELATIONSHIP WITH
INDUSTRY WHERE WE'RE GETTING
GOOD DATA FROM THEM, AND WE'RE
HAVING A FRANK CONVERSATION AND
RESPONSIBLE CONVERSATION ABOUT
HOW TO PROTECT CALIFORNIANS. AND
THEN WE HAVE TO WORK WITH OTHER
GOVERNMENT AGENCIES IN A WHOLE
OF GOVERNMENT APPROACH. WHO'S
THE CLIENT? THE CLIENT IS THE
PUBLIC OKAY. AND ARE YOU GOING
TO USE ALL THOSE FORCE
MULTIPLIERS TO HELP GET THE
INFORMATION OUT ABOUT WHAT WE'RE
DOING? YEAH, ABSOLUTELY. SEE
THAT AS AS THE DIVISION'S ROLE,
I SEE THAT AS AS THE DIVISION'S
ROLE WORKING WITH THE CÁC,
WORKING WITH PARTNERS. BUT I
THINK I THINK WE HAVE TO BE IN
CONTROL OF WHAT WE'RE, YOU KNOW,
WHAT WE'RE COMMUNICATING, I
THINK. YEAH WORKING WITH
PARTNERS TO GET THE MESSAGE OUT,
BUT ALSO WORKING WITH PARTNERS
TO FIND SOLUTIONS. OKAY. AND
WHAT WHAT MORE BESIDES? LIKE A
LETTER I THINK HAS A GREAT IDEA
BECAUSE AGAIN, THE DASHBOARDS I
MEAN, THE AVERAGE PUBLIC DOESN'T
KNOW THAT WE EVEN HAVE A
DASHBOARD TO GO ON TO LOOK AND
TO DO ANY OF THAT. YEAH I THINK
WE NEED TO MAKE THE DASHBOARD
MORE ACCESSIBLE, HAVE IT HAVE A
SIMPLER URL, AND MAYBE HAVE SOME
SIMPLER GRAPHICS SO FOLKS CAN
UNDERSTAND IT. IT'S A LITTLE BIT
OF A POLICY WONK THING, WHICH IS
WHICH IS FINE WITH ME, BUT I
THINK IS HARDER FOR, YOU KNOW,
JOHN. Q PUBLIC TO GLANCE AT AND,
YOU KNOW, SO MAYBE IT NEEDS TO
BE A LITTLE BIT MORE LIKE THE
TRIPLE A WEBSITE IN THAT WAY,
AND, YOU KNOW, AND WE ALSO NEED
TO LOOK FOR OTHER WAYS TO
COMMUNICATE. WE'RE, WE'RE HIRING
A COMMUNITY ENGAGEMENT ROLE, A
DEDICATED ROLE TO INTERFACE WITH
THE PUBLIC, BECAUSE WE
UNDERSTAND HOW IMPORTANT IT IS.
AND THAT'S GOING TO BE SOMETHING
THAT THAT I DO, THE DIVISION
CHIEF THAT OUR ENFORCEMENT
ATTORNEYS, YOU KNOW, EVERYONE IN
THE DIVISION, I THINK
UNDERSTANDS THAT OUR CLIENT IS
THE PUBLIC AND THAT, YOU KNOW,
WE MAY NOT HAVE A MAGIC WAND IN
TERMS OF GAS PRICES, BUT WHAT WE
CAN DO IS SHOW FOLKS WHAT'S
HAPPENING IN THE MARKET AND WHY.
AND PROVIDE REASSURANCE THAT
WE'RE ON THE JOB PROVIDING
OVERSIGHT FOR THE MARKET SO THAT
THESE AREN'T UNFAIR PRICES OR
THE RESULT OF MARKET
MANIPULATION. SO MAYBE THE FIRST
STEP IS JUST INTRODUCING THE
DIVISION TO THE PUBLIC, LIKE
THERE'S SOMEBODY HERE LOOKING
OUT FOR YOU. WE'LL BE BACK WITH
MORE. ABSOLUTELY. OKAY. THANK
YOU. THANK YOU. YEAH I'LL JUST
MAKE A FEW COMMENTS. I, I SHARE
MANY OF THE SAME CONCERNS AND
QUESTIONS THAT SENATOR GROVE
RAISED, AND I DO WANT TO
ACKNOWLEDGE, THOUGH, YOUR
BACKGROUND AND YOUR RESUME, IT'S
VERY IMPRESSIVE, ESPECIALLY AS
AN ANTITRUST, ATTORNEY AND
PROSECUTOR. I THINK THAT'S A
VERY IMPORTANT ROLE IN OUR, OUR
ECONOMY HERE IN THE UNITED
STATES OF AMERICA. YOU KNOW,
CERTAINLY IN CALIFORNIA AS WELL,
I, AND I HOPE THAT, YOU KNOW,
THE FEDERAL GOVERNMENT WILL EVEN
EXPAND THAT OVERSIGHT INTO THE
CORPORATIONS BECAUSE AS
COMPANIES GET BIGGER AND BIGGER,
THAT CONSTRAINS THE FREE MARKET.
AND I'M VERY MUCH A FREE MARKET,
PERSON, BECAUSE I BELIEVE THE
MARKET, IF WE ALLOW IT TO DO
WHAT IT'S SUPPOSED TO DO, IT
USUALLY WILL SOLVE ITS OWN
PROBLEMS. AND A LOT OF THE
PROBLEMS WITH THE FREE MARKET IS
WHEN GOVERNMENT GETS INVOLVED IN
TRIES TO MOVE OR CONTROL OR
CONSTRAIN OAN OR EVEN,
INCENTIVES AS A PART OF THE
MARKET. I REALLY DO APPRECIATE
YOUR ANSWERS TO SENATOR GROVE
REGARDING THAT. YOU'RE COMING AT
THIS WITH AN OPEN MIND AND THAT
YOU DON'T HAVE A PREDETERMINED
OUTCOME. MY PROBLEM WITH THAT,
NOT FOR YOU PERSONALLY. I'M
SEPARATING YOU, THE PERSON FROM
THE POSITION, IN THIS STATEMENT
IS I DON'T THINK THE GOVERNOR
HAS THAT SAME ATTITUDE. I THINK
THE GOVERNOR HAS BEEN VERY CLEAR
IN HIS BROAD STATEMENTS ABOUT
THIS IDEA THAT THE BILL,
SPECIFICALLY THE DEPARTMENT,
THAT HE DOES HAVE A
PREDETERMINED END OUTCOME. I
THINK HE'S BEEN VERY GOOD AT
GRABBING THE HEADLINES AND,
PUTTING ON THE APPEARANCE THAT
HE'S, GOING TO SOLVE THIS
PROBLEM FOR CALIFORNIANS OF
THESE GAS SPIKES AND THE, THE,
THE OIL COMPANY PROFITS, I DON'T
THINK THIS DEPARTMENT IS SET UP
PROPERLY TO DO THAT. I DON'T
THINK YOU WILL HAVE THE TOOLS TO
DO WHAT YOU NEED TO DO HERE. AND
PART OF MY CONFLICT HERE IS IF
THE IF THE OIL COMPANIES ARE,
ABUSING CALIFORNIANS, I'LL GO AS
FAR AS TO SAY THAT I WOULD WANT
TO KNOW THAT AND FIND THAT OUT.
SO MY, CONCERNS ARE NOT TO YOU
PERSONALLY AS THE PERSON MY
CONCERNS ARE TO YOU AT TO THE
POSITION AND THE DEPARTMENT AND
TO THE GOVERNOR. AND YOU'RE
WELCOME TO RESPOND. I KNOW THAT
WAS A VERY GENERAL, MOST OF MY
CONCERNS WERE ASKED AND ANSWERED
BY SENATOR GROVE. WELL, THANK
YOU SO MUCH FOR THOSE COMMENTS,
SENATOR. AND I LOOK FORWARD TO
FURTHER ENGAGEMENT ON MAYBE ON
SOME OF THOSE QUESTIONS,
PARTICULARLY ABOUT HOW SMALL
COMPANIES GET SQUEEZED OUT AND
HOW SOME OF THESE BIG PLAYERS
REALLY DON'T, YOU KNOW, DON'T,
DON'T ALLOW FOR COMPETITION TO
REALLY FLOURISH. AND THAT'S
SOMETHING THAT DPMO IS GOING TO
BE FOCUSED ON AND LOOK FORWARD
TO ENGAGING WITH YOU FURTHER.
AND I WILL KEEP I'LL MAKE A
COMMITMENT TO YOU THAT I WILL
KEEP AN OPEN MIND ENOUGH TO
HOPEFULLY YOU'LL BE ABLE TO WIN
ME OVER IN THE NEXT COUPLE OF
YEARS. THANKS SO MUCH. THANK YOU
SO MUCH, SENATOR JONES. MR.
DIRECTOR, JUST, I HAVE SOME
COMMENTS AND SOME QUESTIONS AS
WELL. SO I THINK, YOU KNOW, MY
BELIEF IS UNDER PROMISE, OVER
DELIVER. WE HAD SOME
CONVERSATION ABOUT THAT. AND I
THINK IT'S REALLY CRITICAL TO BE
ABLE TO UNDERSTAND THAT YOU ARE
JUST GETTING STARTED IN THE
OFFICE. YOU SAID THAT YOU'RE
EMPLOYEE NUMBER ONE AND YOU ARE
LITERALLY STILL STAFFING UP. I
THINK THERE WAS SOME GRANT
ANNOUNCEMENTS ABOUT DAY ONE.
YOU'RE GOING TO BE ABLE TO BRING
DOWN GAS PRICES BEING A LITTLE
FLIP, BUT GRANT ANNOUNCEMENT, IT
TAKES TIME TO BE ABLE TO DO THE
JOB. I THINK IT'S IMPORTANT WITH
THE COMMITTEE YOU HAVE VACANT
POSITIONS YOU'RE STILL FILLING.
WALK US THROUGH. PLEASE DON'T
EXCEED TWO MINUTES. BUT IF YOU
DON'T MIND TAKING A LITTLE BIT
OF TIME ON THOSE POSITIONS THAT
YOU STILL HAVE TO FILL BECAUSE
YOU'RE A LITTLE HAMSTRUNG,
BECAUSE YOU'RE STILL STAFFING UP
AND BUILDING THE AGENCY. YEAH,
YEAH. SO WE HAVE, AS I SAID, TWO
FORMER PROSECUTORS COMING ON
BOARD, AND SO THAT'S, TWO OF OUR
ENFORCEMENT POSITIONS. WE NEED
TO FILL ANOTHER 1 OR 2 ATTORNEY
POSITIONS AS WELL, THE COMMUNITY
ENGAGEMENT POSITION IS ONE WHICH
WE ALSO NEED TO FILL IN SOME OF
THIS. THERE'S THEY WANT TO GET
INTO TOO MUCH. THERE IS SOME
BUREAUCRATIC RED TAPE THAT WE
THAT WE THAT WE STRUGGLE WITH,
BUT WE'RE, WE'RE WORKING THROUGH
THAT AS BEST WE CAN. AND THEN WE
NEED A DEPUTY ECONOMIST AND AN
ANALYST SUPPORTING OUR ECONOMICS
TEAM. SO WE'RE GOING TO HAVE AN
INVESTIGATIONS AND ANALYSIS
BRANCH AND AN ECONOMICS BRANCH.
AND BOTH OF THOSE, YOU KNOW, ARE
ABOUT, YOU KNOW, OUR NOT QUITE
40% FULL. AND SO WE NEED TO GET
TO CLOSE TO FULL STAFFING BY THE
END OF THE SUMMER, I REALLY DO
LIKE THAT THAT PHRASE, YOU KNOW,
UNDER UNDER-PROMISE AND
OVERDELIVER. AND I THINK THAT,
IN THIS, IN THIS SPACE, WE HAVE
TO SURFACE THE FACTS BEFORE WE
CAN SORT OF DELIVER SOLUTIONS,
AND WE NEED TO USE THE DATA AND
FOLLOW THOSE FACTS. AND SO I
THINK IT MAY BE HARD, GOSH, I
PERSONALLY GET FRUSTRATED WHEN I
SEE GAS PRICES GO UP AND I'M
SURE PEOPLE ON THE STREET ARE
FRUSTRATED AS WELL. AND IF
YOU'RE RUNNING A SMALL BUSINESS,
THAT COST EITHER GETS, YOU KNOW,
YOU EITHER HAVE TO, YOU KNOW,
TAKE THAT INTO YOUR AND TAKE IT,
TAKE A HIT THERE OR PASS IT ON
TO YOUR CUSTOMERS. YOU KNOW,
THAT HAS AN EFFECT ALL THROUGH
OUR ECONOMY. SO I WOULD WOULD
LOVE TO BE ABLE TO OFFER FAST
SOLUTIONS. BUT WE HAVE TO GET
THE DATA FIRST AND THEN FOLLOW
THE DATA TO WHAT THE SOLUTIONS
NEED TO BE. YEAH, 100. THAT'S
WHY I WANTED TO GO DOWN THAT
ROAD, BECAUSE IT'S IMPORTANT,
RIGHT? I THINK YOU'RE GOING TO
HAVE ONE OF THE MOST AGGRESSIVE
ACCOUNTABILITY OFFICES IN
AMERICA, BUT IT TAKES TIME TO BE
ABLE TO BUILD THAT OPERATION. IT
ABSOLUTELY DOES. I WANT TO TALK
ABOUT AUTHORITY, AND I KNOW THAT
, AND THIS IS WHERE SOME OF THE
COMMENTS MAY COME IN, AND YOU'RE
WELCOME TO BE ABLE TO COMMENT
BACK. I THINK THE OTHER PIECE IS
WE IS THE STATE OF CALIFORNIA
CONTINUES TO BUILD YOUR AGENCY
LOOKING AT WHERE THE AUTHORITY
LIES. AND IF WE TAKE A LOOK AT
THE CALIFORNIA ENERGY
COMMISSION, AND I'LL JUST BE
SUPER CANDID AND I'LL HAVE A
DIRECT CONVERSATION WITH CHAIR
HOCHSCHILD HERE WHEN HE'S UP FOR
CONFIRMATION, WE GET THIS
BUREAUCRATIC RESPONSE ABOUT
WHERE THEY THINK, THEIR
AUTHORITY LIES. VERY
FRUSTRATING. AND IF WE'RE
GETTING A BUREAUCRATIC RESPONSE,
I CAN'T IMAGINE WHAT THE PUBLIC
IS GETTING. IF I COULD JUST BE
SO CANDID. AND IT TOOK A WEEK
FOR RESPONSE, WHICH I WANT TO
PUT ON THE RECORD HERE TODAY,
AND LOOK FORWARD TO HAVING, THE
CHAIR COMING IN. AND FOR
CONFIRMATION, AND WHAT I'LL SAY
IS, I THINK THE AUTHORITY ON
MAINTENANCE, PLANNED MAINTENANCE
IS CRITICAL, AND GETTING A
BETTER UNDERSTAND THING ABOUT
WHEN REFINERIES ARE ONLINE
VERSUS OFFLINE, AND ESPECIALLY
DURING PEAK PERIODS, OBVIOUSLY,
EMPLOYEE SAFETY WITHIN THOSE
REFINERIES, PRIORITY NUMBER ONE.
BUT BEING ABLE TO HAVE I THINK
SUNSHINE IS THE BEST MEDICINE
AND GETTING A BETTER
UNDERSTANDING WHEN AND WHY THEY
WOULD GO OFFLINE. AND I THINK
THERE NEEDS TO BE SOME
DISCUSSION AND POTENTIAL,
ADDITIONAL AUTHORITY GRANTED TO
THE CÁC TO ALLOW THEM TO HAVE
THAT. I DON'T KNOW IF YOU WANT
TO COMMENT ON THAT. THAT IS A
COMMENT OF MINE, AT LEAST IN OUR
INITIAL REVIEW. BUT WANTED TO
SEE IF YOU WANTED TO COMMENT ON
THAT. AND AGAIN, I WANT TO BE
VERY CLEAR. YOU ARE A DIVISION
AND NOT THE CDC, I WOULD REPEAT
MY COMMENTS EARLIER, YOU KNOW,
DEFER TO THE CDC ON THEIR OWN,
YOU KNOW, VIEW OF THEIR
STATUTORY AUTHORITY. BUT I THINK
EXPRESS ADDITIONAL EXPLICIT
AUTHORITY WOULD POTENTIALLY BE
VERY HELPFUL IN THIS SPACE, AS
TO CHAIR HOCHSCHILD, I HAVE THE
UTMOST RESPECT FOR HIS WORK AND
HIS LEADERSHIP IN TERMS OF AN
ARRAY OF ISSUES, IN TERMS OF THE
ENERGY TRANSFORMATION IN
CALIFORNIA. AT THE SAME TIME, I
THINK WE ALL SEE THE GAS PRICES
GO UP, AND FOLKS WANT VERY
PROMPT RESPONSE. AND SO I
APPRECIATE THAT A LOT OF MY
COLLEAGUES AT THE ENERGY
COMMISSION, I CAN'T IDENTIFY A
SINGLE THING THAT DPMO HAS ASKED
FOR THAT WE HAVEN'T GOTTEN
RESPONSIVE 100. DON'T TAKE MY
COMMENTS AS BEING CRUNCHY WITH
THE CAC. WITH THE EXCEPTION OF
THE RESPONSE TIME AND THE
SUBSTANCE OF THE RESPONSE,
BECAUSE I THINK THAT THEY KNOW.
BUT, SO THAT'S WHERE MY
CRUNCHINESS LIES. I'M GRATEFUL
TO THE COMMISSIONERS AND TO THE
CHAIR, PERSONALLY, I'D LIKE TO
TALK ABOUT STORAGE. I THINK THE
OTHER AREA OF CHALLENGE IS IF WE
ARE TRULY WANTING TO BE ABLE TO
LOOK AT FLATTENING THE SPIKE, WE
HAVE TO BE ABLE TO LOOK AT
ADDITIONAL STORAGE WITHIN THE
STATE, AND SO THAT THERE IS
SUPPLY, SUPPLY FOR YOU NAME IT,
30 DAYS, 60 DAYS, ETC. AND
ENSURING THAT THE CDC HAS THE
AUTHORITY TO BE ABLE TO MANDATE
ADDITIONAL IN-STATE SUPPLY TO BE
ABLE TO FLATTEN THE SPIKES. I
THINK THAT'S ANOTHER ISSUE THAT
WE'RE GOING TO NEED TO BE ABLE
TO TAKE UP WHEN WE HAVE, THE
CHAIR HERE ENSURING THAT THE CDC
HAS THAT AUTHORITY. AND I THINK
THAT'S A BIT SQUISHY AT THE
MOMENT AND POTENTIALLY NEEDING
SOME LEGISLATIVE ASSISTANCE.
BUT, MR. DIRECTOR, I'LL TURN IT
OVER TO YOU IF YOU CARE TO, TO
COMMENT ON THAT, AT LEAST ON THE
ISSUE OF NEEDING RELIEF, YOU
NEED TO HAVE THAT SUPPLY IN
STATE TO BE ABLE TO IMMEDIATELY,
GO IN INTO THOSE PEAK PERIODS.
BUT PLEASE, MR. DIRECTOR,
ABSOLUTELY AGREE ON THE ON THE
SUPPLY AND DEMAND. THERE'S I
THINK YOU'LL SEE THIS IN THE MAY
WORKSHOP. THERE'S AN INVENTORY
LEVEL BELOW WHICH PRICE SPIKES
START TO HAPPEN. AND SO DPM'S
PERSPECTIVE IS WE NEED TO SET A
REALISTIC AND A PRAGMATIC
REQUIREMENT ABOVE THAT. AND THE
SPECIFICS NEED TO BE WORKED OUT.
AND I THINK THE CEC IS SURVEYING
CURRENTLY WHAT STORAGE CAPACITY
IS ALREADY THERE. I THINK
THERE'S A VERY GOOD CHANCE THAT
WE HAVE ENOUGH OR CLOSE TO
ENOUGH ALREADY IN PRIVATE HANDS.
AND SO WE NEED TO FIGURE OUT HOW
WE CAN WORK WITH OUR PRIVATE
PARTNERS TO MAKE IT WORK. AND
THERE MAY BE THE NEED TO BUILD
SOME MORE, BUT I'M NOT I'M NOT
SURE THAT THAT'S THAT'S THE
CASE, SO HOPEFULLY WE'LL HAVE
MORE INFORMATION SOON. YEAH. AND
I THINK THAT ABSOLUTELY IT'S
GOING TO BE IMPORTANT. SO, AND
AGAIN, I THINK THERE'S TWO
QUESTIONS HERE, RIGHT. ONE, THE
AUTHORITY QUESTION DOES CEC HAVE
THE AUTHORITY. AND THEN TWO,
WHAT ARE THE BEST TOOLS TO BE
ABLE TO FLATTEN THE SPIKES.
RIGHT. AND I THINK AND AGAIN
YOUR OPINION NEEDING ADDITIONAL
OIL STORAGE CAPACITY, ESPECIALLY
DURING PEAK PERIODS. YES. AND AN
OBLIGATION TO HAVE GASOLINE AND
GASOLINE BLENDING COMPONENTS IN
THOSE STORAGE FACILITIES 100.
NO, I APPRECIATE THAT. MY LAST
QUESTION. SO WALK US THROUGH THE
REMAINDER OF THE YEAR WHERE
YOU'RE AT NOW WITH STAFFING AND
WHERE YOU THINK YOU'RE GOING TO
BE COME JANUARY 1ST, WE'RE
HOPING TO BE 80% STAFFED, BY
LATER THIS YEAR, THERE ARE SOME
AIR WHEELS THAT TURN SLOWLY, BUT
BUT I THINK 80% STAFFED IS A
GOOD GOAL. IF WE COULD GET TO
100, YOU KNOW, UNDER PROMISE,
OVER DELIVER IS THE GOAL THERE,
SO THAT'S OUR HOPE. AND YOU
KNOW, I THINK, I THINK THERE'S A
SORT OF TWO FUNCTIONS THAT WE
HAVE THAT ARE CORE TO WHAT WE
DO. ONE IS MARKET OVERSIGHT.
WE'RE LOOKING AT THE SPOT MARKET
TRADES. WE'RE LOOKING AT
INDUSTRY DATA. WE'RE LOOKING AT
WHAT MARKET PARTICIPANTS ARE
DOING. AND THEN WE'RE ALSO
LOOKING AT THE MARKET, DOING
SOME OF THESE PUBLIC PROPOSALS,
OUR INVESTIGATIVE WORK AND THE
WORK IN MARKET OVERSIGHT IS
GOING TO LARGELY GOING TO BE OUT
OF THE PUBLIC VIEW, BECAUSE
INVESTIGATIONS SORT OF NEED TO
HAPPEN. CONFIDENTIALITY,
CONFIDENTIAL, CONFIDENTIAL. SO
SOME OF THAT WORK WILL WILL
CONTINUE APACE, BUT ISN'T
NECESSARILY GOING TO BE KNOWN
PUBLICLY ON ANY SPECIFIC
TIMETABLE. NICE JOB, MR.
DIRECTOR. VERY MUCH APPRECIATE
THE TIME. LET'S SEE IF THERE'S
ANY ADDITIONAL COMMENTS.
QUESTIONS PLEASE. JUST A FOLLOW
UP QUICK FOLLOW UP QUESTION ON
THE STAFFING BECAUSE I DIDN'T
SEE IT IN THE IN THE,
BACKGROUND. I MAY HAVE MISSED
IT, AND I DO APPRECIATE YOUR
COMMENTS REGARDING LEADERSHIP
AND STAFFING, HOW MANY STAFF
MEMBERS ARE, APPROVED FOR THIS
DEPARTMENT AND THEN HAVE YOU
MANAGED A SIZE OF STAFF THAT BIG
BEFORE OR WHAT'S THE, YOU KNOW,
TELL ME YOUR BACKGROUND ON
MANAGING A STAFF OF CLOSE TO OR
WHAT SIZE OF STAFFS YOU'VE
MANAGED. SURE. SO, TEN POSITIONS
ARE AUTHORIZED THAT THAT WE'RE
LOOKING TO FILL, AND SO AT THE
MOMENT WE HAVE THREE OF THOSE
FILLED AND HOPEFULLY WE'LL HAVE
FIVE SOON, HOPEFULLY ACTUALLY
SIX SOON, AND THEN IN THE COMING
MONTHS, YOU KNOW, UP TO 80% AND
HOPEFULLY ABOVE THAT, I WOULD
POINT TO MY EXPERIENCE AS A
PROSECUTOR WORKING ON A TEAM
WITH 4 OR 5 ATTORNEYS, 3 OR 4
PARALEGALS, SUPPORT STAFF, THIS
SIZE OF AN OFFICE IS PRETTY
SIMILAR TO WHAT A PROSECUTION
TEAM WOULD LOOK LIKE, ALSO IN
BOTH THE CALIFORNIA ATTORNEY
GENERAL'S OFFICE AND AT THE US
DEPARTMENT OF JUSTICE, I WAS ON
HIRING COMMITTEES AND, YOU KNOW,
HAD A ROLE TO PLAY IN SELECTING
WHO WE WERE GOING TO ONBOARD AND
WHY. AND SO LOOKING FOR PEOPLE
WITH THAT PASSION FOR PUBLIC
SERVICE WHO ARE WILLING TO PUT
IN THE WORK AND WHO JUST CARE
DEEPLY ABOUT THESE ISSUES, I
THINK IS REALLY IMPORTANT, BOTH
TO SERVING THE PUBLIC WELL AND
HAVING THE RIGHT SORT OF ESPRIT
DE CORPS THAT WE'RE LOOKING FOR.
THANK YOU, THANK YOU. OKAY. ALL
RIGHT. THANK YOU, MR. DIRECTOR.
WHAT WE'RE GOING TO DO IS OPEN
IT UP FOR EACH OF YOU WHO WOULD
LIKE TO BE ABLE TO COMMENT.
THANK YOU FOR YOUR PATIENCE.
WE'D LIKE TO BE ABLE TO WELCOME
ANYONE AND EVERYONE. IF YOU
COULD PLEASE COME FORWARD. WE'RE
LOOKING FOR THOSE WHO ARE IN
SUPPORT. IF YOU DON'T MIND
GIVING US YOUR FIRST AND LAST
NAME ALONG WITH YOUR
ORGANIZATION, YOU HAVE 30S.
WELCOME. IT'S GOOD TO SEE KIM
STONE STONE ADVOCACY ON BEHALF
OF CONSUMER WATCHDOG IN SUPPORT
OF THE NOMINATION. THANK YOU AND
GOOD LUCK. GOOD TO SEE YOU, MISS
STONE. THANK YOU SO MUCH. I'D
LIKE TO BE ABLE TO SEE IF ANYONE
ELSE WOULD LIKE TO BE ABLE TO
STAND AND COME FORWARD TO THE
PODIUM IN SUPPORT, LOOKING FOR
THOSE WHO ARE IN SUPPORT.
WELCOME HI, MY NAME IS STEPHEN
KING. I'M WITH ENVIRONMENT
CALIFORNIA, WE'RE IN SUPPORT OF
THIS NOMINATION. WE BELIEVE IT'S
IMPORTANT FOR THE STATE TO
MONITOR AND HOLD THE PETROLEUM
INDUSTRY ACCOUNTABLE AND TO
ENSURE THAT CONSUMERS ARE
TREATED FAIRLY. THANK YOU. THANK
YOU, MR. KING. APPRECIATE THAT.
WOULD LIKE TO SEE IF ANYONE ELSE
WHO WOULD INTERESTED IN SPEAKING
IF THEY CAN PLEASE COME FORWARD
AT THIS TIME. ALL RIGHT. WE'RE
NOW GOING TO LOOK AT THOSE WHO
MAY BE IN OPPOSITION, THOSE WHO
ARE IN OPPOSITION. IF YOU COULD
PLEASE RISE AND COME FORWARD TO
THE PODIUM. FIRST AND LAST NAME.
WE'RE GOING TO DO LAST CALL. ALL
RIGHT. LET'S BRING IT BACK TO
COMMITTEE TO BE ABLE TO SEE IF
THERE'S ANY ADDITIONAL QUESTIONS
OR COMMENTS FROM COMMITTEE. I'LL
JUST MAKE 1/32 COMMENT. MR.
DIRECTOR, I JUST WANT TO SAY
SUPER IMPRESSED, AT THE ABILITY
TO SIT DOWN WITH YOU AT THE
VISION FOR THE AGENCY AND LET'S
JUST BE CANDID, THERE'S NOTHING
EASY ABOUT PROPPING UP A NEW
WING LIKE YOU'RE DOING RIGHT
NOW, AND, AND ESPECIALLY IN SUCH
A POLITICALLY CHARGED
ENVIRONMENT, GRATEFUL FOR YOUR
LEADERSHIP AND SO HAPPY THAT
YOU'RE HERE. AND IT'S VERY COOL
TO BE ABLE TO HAVE YOUR FAMILY
HERE AS WELL, IS THERE A MOTION
TO BE ABLE TO APPROVE? WE HAVE A
MOTION BY SENATOR EGGMAN. THANK
YOU SO MUCH. MADAM SECRETARY,
CAN YOU PLEASE CALL THE ROLL
MCGUIRE. AYE. MCGUIRE. AYE.
GROVE GROVE NOT VOTING. EGGMAN
EGGMAN. AYE. JONES. NO. JONES.
NO LAIRD. AYE. LAIRD. AYE. 3 TO
1. THAT IS A THREE. ONE. WE'RE
GOING TO KEEP THAT ON CALL, AND
WE ARE NOT GOING TO ADJOURN
QUITE YET, AS WE'RE GOING TO
HAVE, THE VICE CHAIR COME BACK.
SO THAT IS ON CALL. THANK YOU SO
MUCH, MR. DIRECTOR. GRATEFUL.
THANK YOU. GRATEFUL FOR THOSE
CLOSING COMMENTS. THANK YOU SO
MUCH. THANK YOU SO MUCH. NICE TO
MEET YOU. IT'S GOOD TO SEE YOU.
THANK YOU. SO, LADIES AND
GENTLEMEN, THE COMMITTEE, EACH
OF THE COMMITTEE MEMBERS WHO ARE
HERE ARE UP ON EACH OF THE
VOTES. YOU ARE MORE THAN WELCOME
TO BE ABLE TO HEAD ON OUT ON
THIS BUSY WEEK. WE ARE GOING TO
RECESS THE COMMITTEE. WE'RE
GOING TO HANG HERE. THE
SERGEANTS ARE GOING TO BE
CALLING MICHAEL, IF YOU DON'T
MIND CHECKING IN ON AS VICE
CHAIR. GROVE AND THEN WE'LL KEEP
THE ROLL OPEN FOR NOW. WE'RE
GOING TO RECESS HERE FOR JUST A
COUPLE OF MINUTES
I'M GOING TO BRING IT BACK. WE
HAVE ONE OPEN ITEM THAT IS THE
POTENTIAL CONFIRMATION OF
DIRECTOR MILDER, CURRENTLY ON
CALL. A31 VOTE. THREE ONE VOTE.
MADAM SECRETARY, CAN YOU PLEASE
CALL THE ABSENT MEMBERS? MCGRAW?
SORRY. MAGRAV GROVE. NO GROVE.
NO. NO. THAT'S A32 VOTE. FINAL
VOTE. THE MOTION PASSES. ALL
RIGHT. THANK YOU SO MUCH. EACH
AND EVERY ONE OF YOU FOR THE
WORK TODAY, WE'RE GOING TO BE
ADJOURNING, WE WILL NOT BE
MEETING NEXT WEEK. WE'LL BE BACK
WITH YOU, TWO WEEKS FROM TODAY.
THANK YOU SO MUCH. WE'RE
ADJOURNED