ASSEMBLY BANKING AND FINANCE
COMMITTEE IS CALLED TO ORDER.
WE DON'T HAVE A QUORUM BUT WE
CAN START AS A SUBCOMMITTEE.
WELCOME TO THE FIRST BILL
HEARING OF THE ASSEMBLY BANKING
AND FINANCE COMMITTEE WHETHER
YOU ARE HERE IN PERSON WATCHING
VIRTUALLY OR ON THE PHONE
LINES. I AM GRATEFUL YOU HAVE
JOINED US HERE THE CALIFORNIA
STATE ASSEMBLY CHAMBER FLOOR I
DON'T WANT TO THANK MY VICE
CHAIR ASSEMBLY MEMBER CHEN FOR
BEING A FANTASTIC COLLIE AND I
WANT TO EXTEND A WARM WELCOME
TO OUR NEW MEMBERS. ASSEMBLY
MEMBER GARCIA ASSEMBLY MEMBER
PETRIE-NORRIS ASSEMBLY MEMBER
WHEN WELCOMING A WELCOME TO THE
BANKING AND FINANCE COMMITTEE.
I LOOK FORWARD TO WORKING WITH
YOU ALL THIS WILL BE A VERY
PRODUCTIVE AND EXCITING YEAR. I
WILL NOW GO OVER SOME KEY
ELEMENTS OF THE STRUCTURE OF
TODAY'S HEARING. DUE TO THE
ONGOING PANDEMIC WE ARE
PRACTICING PHYSICAL DISTANCING
AT THIS HEARING AND THROUGHOUT
THE CAPITOL BUILDING. WE ARE
ONLY ABLE TO HAVE A LIMITED
NUMBER OF PEOPLE WATCH AND
PARTICIPATE. IN THE HEARING IN
PERSON. IN THIS SPACE WE CAN
ONLY ACCOMMODATE MEMBERS OF
THIS COMMITTEE AND THE AUTHORS
A MINIMAL CONTINGENT OF STAFF.
AND A LIMITED NUMBER OF THE
PUBLIC AND MEDIA SO WE CAN
MAINTAIN SIX FEET OF SPACING.
THERE ARE ALSO STRICT PHYSICAL
DISTANCING PROTOCOLS FOR THE
PUBLIC TO ENTER AND LEAVE THE
CAPITAL AND FOR THOSE HERE
TODAY AND THE HEARING. IN IF
ANY MEMBER OF THE PUBLIC IN THE
ROOM WOULD LIKE TO TESTIFY ON A
BILL PLEASE RAISE YOUR HAND AND
I WILL ASK YOU TO APPROACH THE
MICROPHONE. AT THE APPROPRIATE
TIME YOU CAN EXIT THE HEARING
ONCE YOU FINISH TESTIFYING OR
RETURN TO YOUR SEAT. FOR EACH
BILL WE WILL ALLOW TWO PRIMARY
WITNESSES IN SUPPORT AND TWO
PRIMARY WITNESSES IN
OPPOSITION. WITNESSES MAY USE
ARE MODERATED TELEPHONE SERVICE
OUR WITNESS VIDEO CONFERENCING
ROOMS WHICH ARE LOCATED HERE IN
THE CAPITAL AND THE REMOTE
TESTIMONY STATION LOCATED ON
THE NORTH STEPS OF THE CAPITOL.
FOR THOSE USING THE MODERATED
TELEPHONE SERVICE THE CALL IN
NUMBER FOR THIS HEARING IS
EIGHT SEVEN SEVEN. SIX NINE TWO
EIGHT NINE FIVE SEVEN AND THE
ACCESS CODE IS. TWO FOUR TWO
SIX TWO THREE SEVEN. YOU CAN
ALSO FIND THIS NUMBER ON THE
ASSEMBLY BANKING COMMITTEE
pOR MONITOR SCREEN. IF YOU ARE
CALLING IN PLEASE PLAN O DO SO
AS THE AUTHOR OF THE BILL YOUR
TESTIFYING ON. IS BEGINNING
THEIR BILL PRESENTATION. THE
OPERATOR ON THE LINE WILL GIVE
YOU INSTRUCTIONS ON HOW TO BE
PLACED IN QUEUE BASED ON
WHETHER YOU SUPPORT OR OPPOSE A
BILL. IF YOU ARE CALLING AND
PLEASE ELIMINATE ALL BACKGROUND
NOISE THIS INCLUDES MUTING YOUR
LIVESTREAM BROADCAST. AND YOUR
SMARTPHONE DEVICES TO REDUCE
THE SOUND DISTORTION. PLEASE
ALSO BE ADVISED THAT IF YOU ARE
A PRIMARY WITNESS PROVIDING
TESTIMONY FOR OR AGAINST THE
BILL. YOU WILL REMAIN ON A LIVE
LINE AND WILL NEED TO MUTE
YOURSELF UNTIL YOU ARE CALLED
ON TO SPEAK. IF YOU ARE HAVING
ANY PROBLEMS WITH THE MODERATED
PHONE SERVICE YOU CAN CALL THE
COMMITTEE AT. 916-319-3081 AND
MY STAFF WILL BE THERE TO TRY
TO HELP. AFTER WE HEAR FROM THE
PRIMARY WITNESSES ADDITIONAL
SPEAKERS CAN ALSO EXPRESSED
SUPPORT OR OPPOSITION OF A BILL
THROUGH THE MODERATED TELEPHONE
SERVICE. OR THE REMOTE
TESTIMONY STATION LOCATED ON
THE NORTH STEPS OF THE CAPITOL
PLEASE LIMIT YOUR COMMENTS TO
YOUR NAME ORGANIZATION AND
WHETHER YOU SUPPORT OR OPPOSE
THE BILL. I ALSO WANT TO NOTE
THAT WE ARE ACCEPTING WRITTEN
TESTIMONY TO THE POSITION
LETTER PORTAL ON THE
COMMITTEE'S WEBSITE ONE LAST
POINT. THIS YEAR PROTESTERS
HAVE APPEARED AT LEGISLATIVE
HEARINGS REMOVING THEIR MASKS
YELLING FROM THE AUDIENCE AND
ISSUING VEILED THREATS ABOUT
POTENTIAL GUN VIOLENCE. IN
ORDER TO FACILITATE THE GOAL OF
HEARING AS MUCH FROM THE PUBLIC
WITHIN THE LIMITS OF OUR TIME
WE WILL NOT PERMIT CONDUCT THAT
DISRUPTS DISTURBS OR OTHERWISE
IMPEDES THE ORDERLY CONDUCT OF
LEGISLATIVE PROCEEDINGS. WE
WILL NOT ACCEPT DISRUPTIVE
BEHAVIOR OR BEHAVIOR THAT
INCITES OR THREATENS VIOLENCE
EVEN VEILED THREATS WE APPLY
THESE RULES TO ALL PEOPLE WHO
PARTICIPATE IN OUR PROCEEDINGS.
THANK YOU FOR BEARING WITH US
AS WE IMPLEMENT METHODS TO
CONTINUE TO SERVE THE PEOPLE OF
CALIFORNIA WHILE ALSO BEING
MINDFUL AND RESPECTFUL OF THE
PUBLIC HEALTH CONCERNS THAT WE
ALL FACE. MEMBERS IF YOU WOULD
LIKE TO RESPOND TO ROLL CALL
ASK A QUESTION OR PROVIDE A
COMMON YOU WILL NEED TO RAISE
YOUR MICROPHONE SO STAFF CAN
ACTIVATED WHEN YOU ARE
RECOGNIZED TO SPEAK. ALSO
PLEASE SPEAK CLEARLY INTO THE
MICROPHONE TO ENSURE YOUR VOICE
IS AUDIBLE AND CAN BE RECORDED.
I'M LOOKING AROUND AND CHECKING
TO SEE IF WE HAVE A QUORUM IT
LOOKS LIKE WE DO. SECRETARY
WOULD YOU PLEASE CALL ROLE.
GRAYSON HERE CAN BEAR CAN.
BURKE CERVANTES CHOI THERE
GABRIEL. CRISTINA GARCIA. JANET
NGUYEN. PETRIE-NORRIS STONE
WICKS. VERY GOOD WE HAVE
ESTABLISHED A QUORUM OUR FIRST
ORDER OF BUSINESS IS THE
ADOPTION OF COMMITTEE RULES
THESE WERE RULES WERE
DISTRIBUTED TO EACH OFFICE OF
THE COMMITTEE MEMBERS AND WERE
APPROVED BY THE CHIEF CLERK'S
OFFICE THEY ARE LARGELY THE
SAME AS LAST SESSION'S RULES DO
I HAVE A MOTION FOR THE
ADOPTION COMMITTEE RULES. WE
HAVE A MOTION BY ASSEMBLYMEMBER
STONE AND SECOND BY. ASSEMBLY
MEMBER WICKS. SECRETARY WILL
YOU PLEASE CALL ROLE. GRAYSON I
GRAYSON AYE CHAN CHAN I BARRETT
CAN BURKE CERVANTES CHOI CHOI I
GABRIEL CRISTINA GARCIA. JANET
NGUYEN. PETRIE-NORRIS STONE
WICKS. YEAH GARCIA I. IT HAS
EIGHT BOOKS. THANK VOTERS EIGHT
FIVE AND WE WILL ADOPT THE
RULES FOR THIS COMMITTEE AND
THE SESSION. BEFORE WE PROCEED
WITH BILLS WE WILL TAKE UP THE
CONSENT CALENDAR WE HAVE SIX
BILLS ON CONSENT. THOSE BILLS
ARE THE FOLLOWING. ITEM THREE
A. B. ELEVEN THIRTY SIX THE
MOTION IS TO PASS TO
APPROPRIATIONS ITEM FOR AB
THIRTEEN TWENTY THE MOTION IS
TO PASS TO APPROPRIATIONS. ITEM
FIVE AB TWO EIGHTY THREE THE
MOTION IS TO PASS TO
APPROPRIATIONS ITEM SIX SB SIX
SIX THREE THE MOTION IS DUE
PASSED APPROPRIATIONS ITEM OF
FINALLY AB THOUGHT FOR THIRTY
THE MOTIONS TO PASS TO
JUDICIARY. AND ITEM FILE NINE.
AB FOUR FOUR SEVEN THE MOTIONS
TO PASTOR APPROPRIATIONS WE DO
HAVE A MOTION AND A SECOND. DID
YOU GET THOSE. OF THE PEOPLE TO
CALL ABOUT. THE MOTION THE%
SECOND OKAY SECRETARY PLEASE
CALL THE ROLL. GRAYSON AYE
GRAYSON AYE CHAN CHAN I CAN.
BURKE CHOI CHOI HI CERVANTES.
GABRIEL CRISTINA GARCIA
UNIVERSITY I. JANET NGUYEN. HI
PETRIE-NORRIS HI STONE STONE
AYE WICKS WICKS I. HAS A BOTH.
THE BILL HAS EIGHT VOTES OR THE
CARD HAS A VOTE AND WE BELIEVE
IT ON CALL FOR ABSENT MEMBERS
TO ADD ON. WE WILL NOW GO TO
ITEM FILE ITEM NUMBER ONE A. B.
FOURTEEN ZERO FIVE ASSEMBLY
MEMBER WICKS WILL YOU START
WITH AB FOURTEEN OH FIVE AND
WHEN YOU ARE READY YOU CAN
BEGIN WITH YOUR OPENING
STATEMENTS THANK YOU MISTER
CHAIR AND MEMBERS I WANT TO
START BY THANKING THE COMMITTEE
STAFF. AND FOR THEIR TIME
WORKING EFFORT ON THIS BILL AND
WE WERE WORKING VERY CLOSELY
WITH THEM- AND IT'S NEW
COMMITTEE STAFF IS ALSO
EXCITED. ABOUT THAT AND ALSO
EXCITED THAT WE HAVE A NEW
CHAIR HERE- CONGRATULATIONS ON
YOUR CHAIRMANSHIP LOOKING FOR
TO WORKING WITH YOU MISTER
CHAIRMAN- WE WILL BE ACCEPTING
THE COMMITTEE AMENDMENTS- WHICH
WE THINK- HOPEFULLY WILL HELP-
WITH WITH THEIR OPPOSITION TO
WE WILL BE GETTING TO MEET WITH.
WITH SO MANY CALIFORNIANS
STRUGGLING WITH THE ECONOMIC
IMPACTS OF COVER NINETEEN IT IS
IMPORTANT THERE ARE STRONG
PROTECTIONS TO PREVENT WELL
INTENDED. BUT MISINFORMED
CONSUMERS FROM FALLING INTO
WORST FINANCIAL SITUATIONS.
CURRENTLY THERE'S VERY LITTLE
REGULATION OF DEBT SETTLEMENT
COMPANIES IN CALIFORNIA.
CURRENT LAW DOES NOT REFLECT
THE CHANGING PRACTICES OF THIS
INDUSTRY. WHICH IS MADE
ENFORCEMENT MORE DIFFICULT.
THIS LACK OF REGULATION HAS LED
TO INCREASED PREDATORY BEHAVIOR
BY SOME OF THE BAD ACTORS
WITHIN THE DEBT SETTLEMENT
INDUSTRY AND I WILL SAY I THINK
THERE ARE A LOT OF GOOD ACTORS
AND THAT SOMEONE INDUSTRY- WHO
I THINK DO HELP PEOPLE IN TIMES
OF NEED TO GET. MORE
FINANCIALLY SECURE BUT THIS
BILL IS REALLY AIMED AT
TIGHTENING UP- SOME OF THE
REGULATION. CHARTING SOME OF
THE BAD ACTORS IN THE SPACE.
MOREOVER THE LACK OF REGULATION
OF THIS GROWING INDUSTRY HAS
RESULTED IN CONUSED AND
FRUSTRATED CUSTOMERS SPENDING
ADDITIONAL MONEY AND TIME
TRYING TO DEAL WITH
UNANTICIPATED DEBT COLLECTIONS.
LAWSUITS OF THEIR IN ROLE DEBTS.
AB FORTINO FIVE WILL MODERNIZE
CURRENT LAW TO BETTER REFLECT
THE INDUSTRY'S PRACTICES AND
IMPROVE REGULATION OF DEBT
SETTLEMENT COMPANIES BY DOING
THE FOLLOWING THINGS. MAKING
SURE THAT ALL THAT SETTLEMENT
COMPANIES OPERATING CALIFORNIA
ARE COVERED BY CALIFORNIA LAW.
PROHIBITING THAT SOME COMPANIES
FROM ENGAGING IN DECEPTIVE AND
MISLEADING PRACTICES. REQUIRING
CRITICAL DISCLOSURES THAT WOULD
ALLOW CONSUMERS TO MAKE
INFORMED DECISIONS ABOUT THEIR
FINANCIAL OPTIONS. AND
PROVIDING CUSTOMERS- INJURED BY
BAD ACTORS WITH REMEDIES. THIS
IS AN URGENT THERE'S AN URGENT
NEED FOR THIS- LEGISLATIVE
ACTION TO PROVIDE GUARDRAILS
OVER THAT SOME INDUSTRY BEFORE
THE BAD ACTORS IN THE SPACE CAN
TAKE ADVANTAGE OF CONSUMERS.
WHO HAVE ALREADY ARE CURRENTLY
SUFFERING THROUGH THE PANDEMIC
AND THE RECESSION THIS BILLS
INTENDED TO PROVIDE PROTECTIONS
IN THE SUPPLEMENT THE WORK OF
THE DF PI. WITH THE
ESTABLISHMENT OF THE DEPARTMENT
THE D. F. P. I. HAS A BROAD
MANDATE TO REGULATE CONSUMER
FINANCIAL PRODUCTS UNDER
CALIFORNIA FINANCIAL LAWS-INCLUDING THE REGULATION OF
THAT SETTLEMENT SERVICES. AB
FORTINO FIVE WILL SUPPLEMENT
THE FBI'S PURVIEW OVER THAT
SOME COMPANIES WILL PROVIDING
CONSUMERS WITH MORE ROBUST
PROTECTIONS IN WORKING WITH THE
COMMITTEE THE AMENDMENTS TAKEN
TODAY WILL ADDRESS TWO OF THE
MAIN CONCERNS TWO OF THE THREE-
THAT OPPOSITION HAS RAISED AND
IT WILL BE CONTINUE TO DISCUSS-
AN ONGOING FASHION DOES THE
OPPOSITION KNOWS- THE REMAINING
ISSUES THAT THEY HAVE SOME OF
WHICH I. AM HOPEFUL THAT WE CAN
COME TO AGREEMENT ON. THIS BILL
IS SPONSORED BY THE CALIFORNIA
LOW INCOME CONSUMER COALITION-
AND SUPPORTED BY NUMBER OF
LEGAL AID ORGANIZATIONS AND
CONSUMER ADVOCACY
ORGANIZATIONS. TESTIFYING IN
SUPPORT WITH ME TODAY ARE
DESIREE WENT NORTH. THE
CONSUMER SHEET SORRY SHE'S FROM
THE- CONSUMER ADVOCACY
PROJECTS. OF THE JUSTICE AND
DIVERSITY CENTER OF THE BAR
ASSOCIATION OF SAN FRANCISCO.
AND DANNY AT KENDAL KERR'S ARE
REPRESENTING THE SPONSORS OF
THE BILL THE CALIFORNIA LOW
THANK YOU ASSEMBLYMEMBER
WICKSON WE WILL NOW MOVE ON TO
THE WITNESSES THAT ARE IN
SUPPORT I REMIND THE WITNESSES
THAT YOU HAVE TWO MINUTES EACH.
OUR FIRST WITNESSES IN SUPPORT
WILL BE TESTIFYING OVER THE
PHONE MODERATOR PLEASE CONNECT
US WITH DESIREE WENT FORTH.
FROM THE CONSUMER ADVOCACY
PROJECT OF THE DRESSES ON
DIVERSITY CENTER OF THE BAR
ASSOCIATION OF SAN FRANCISCO.
WHO WILL TESTIFY ON AB. ONE
FOUR ZERO FIVE. THANK YOU AND
GOOD AFTERNOON SHERRIN NUMBERS.
I ENJOY WHEN PAR AND YOU'VE
HEARD MY TITLE WHICH IS VERY
VERY LONG. YEAH THE PRACTICE
WHEREBY A DEBT SETTLEMENT
COMPANY INTERJECTED BETWEEN
HUMOR AND CREDITOR WITH THE
GOAL OF NEGOTIATING A
SETTLEMENT OF THE CONSUMERS
THAT. PRESUMABLY BUT NOT ALWAYS
FOR NOT LESS THAN WHAT IS OWED.
I DEFINITELY CAN OPERATE BY
CONSUMER AND GOING TO GET
PEOPLE SHOULD HAVE NEGOTIATED
AND PAYING A MONTHLY FEE
INTERNET COUNT IN ORDER TO FIND
THE RESULTANT SETTLEMENT
CONSERVANCY. BUT THAT'S THE
ONLY COMPANY THAT TOP PAYMENT
ON THE CONSUMER DEBT IN ORDER
TO FORCE THE CREDITOR INTO
NEGOTIATING SETTLEMENT. AT THE
OUTSET OF THE PLAN AND WHAT THE
TERM IF YOU WHICH CREDIT RATING
TAKE A LARGE HIT BECAUSE THE
COMPUTER DOESN'T CURRENTLY
DEALING WITH AND EVENTUALLY
TURNED OUT THAT. NOTHING THAT
I'VE DESCRIBED IS AVAILABLE
ONLY TO DOCUMENT COMPANIES
CONSUMERS CAN DO ALL OF THIS
CELL TRICKERY. WHEN IT COMES TO
CONSUMER DATA THE MARKET PLACE
FAILURE IN THE FEDERAL
LIMITATIONS IMPOSED ON
CREDITORS WORKING WITH THEIR
DESTRUCTION YOU MIGHT. GET ONE
THAT DOES NOTHING TO ADDRESS.
THE FAILURE IT EXPLOITS THAT.
IN A ABSOLUTELY. THAT CONSUMERS
OPTION TO DEAL WITH THEIR- SAID
TO UNDER. THE OPTION LIKE HOW
TO NO CHOICE ALL. CONFUSION
ABOUT THAT AND- THAT GOVERNMENT
INDUSTRY IS ACTUALLY THE- ISSUE.
I GRADING OF THAT IS THE
OPPOSITE TO THE AMERICANS THAT
THE- OF FOR THAT. THE REASON
DEFENSE. I THAT SHOULD NOT BE
THE CONNECTS. BECAUSE I THINK
INCOME COMPOSED WEEKLY. AND
CONSTRUCTION. THAT WOULD NOT
FLEXIBLE AND THERE WILL TO HAND
IT OVER LIKE YOUR- PLAN. AND
MIKE. BUSINESSES MAY COMES UP
COSTA CITIZEN CENTER FOR GOING
MEDICATION OR WHO. IN ORDER TO
STAY IN UNNECESSARY TO HELP. IN
NOT THAT COMING COMPANIES ARE
BY THAT REGULATION AND DOT. IS
ACTIVELY TO. THE TAXI PEOPLE.
HE'D COME THAT HAVE LITTLE TO
NO RIGHT. AND CAN HAVE NO READ.
BECAUSE THAT IT REPUBLICAN. CAN
EVEN OUT OF THAT SETTLEMENT
COMPANY. INCLUDING A FOURTEEN
FIVE PROVIDE POLLUTION TO BE.
OKAY CONSUMERS. OPTIONS AND- TO
MAKE AN- CHOICE NOT MANAGE
THEIR DATA. I URGE- I OUT.
THANK YOU VERY MUCH ARE SO WITH
THIS. IN SUPPORT IS DANNY
KAISER FROM CAL. LOW INCOME
CONSUMER COALITION. FROM WHO
WILL. WE WILL OFFER BECAUSE-
OVER THE PHONE MONTEREY. PLEASE
CONNECT US WITH DANNY KAISER
PLEASE. GOOD AFTERNOON CHAIR
AND MEMBERS THANK YOU FOR THE
OPPORTUNITY TO PROVIDE
TESTIMONY TODAY MY NAME IS
DANNY CANDOR KAISER. AND I
REPRESENT THE SPONSORS OF AB
FOURTEEN OUTSIDE THE CALIFORNIA
LOW INCOME CONSUMER COALITION.
A COALITION OF FOURTEEN LEGAL
SERVICE PROVIDERS FROM AROUND
THE STATE. AB FORTINO FIVE IS
NOT A BAN ON THAT SETTLEMENT
CONTRARY TO THE OPPOSITION'S
COMES BACK CLEAN. AB FORTINO
FIVE WILL NOT RUN DEBT
SETTLEMENT COMPANIES OUT OF
CALIFORNIA AS PROVED BY. THE
FACT THAT THEIR SERVICES ARE
STILL OFFERED IN FORTY THREE
STATES. THAT REGULATE THAT
SETTLEMENT. INCLUDING THE NINE
IN WHICH THERE ARE OUT RIGHT
NOW. THE BILL DOES NOT CUT OFF
OR CONFLICT WITH THE FBI'S
ABILITY TO REGULATE THAT
SETTLEMENT COMPANIES JUST THE
REVERSE. THIRTIETH PI WILL BE
ABLE TO FORCE FORTINO FIVE
ITSELF. MY APOLOGIES. THIS BILL
DOES NOT CUT OFF FOR CONFLICT
WITH THE FBI ABILITY TO
REGULATE THAT PARLIAMENT
COMPANIES JUST THE REVERSE DID
THE FBI WILL BE ABLE TO ENFORCE
PORTANTINO FIVE ITSELF NOR DOES
THIS BILL OVER BURDEN DEBT
MANAGEMENT COMPANIES THAT ARE
ALREADY IN COMPLIANCE WITH THE
FTC'S TELEMARKETING SALES RULE
BECAUSE MANY OF THE BILL'S
REQUIREMENTS ARE CONSISTENT
WITH THAT ROLE. AB FORTINO FIVE
DOES GIVE CONSUMERS A CHANCE TO
MAKE AN INFORMED CHOICE IT
REQUIRES THE COOLING OFF PERIOD
TO PREVENT IRREPARABLE DAMAGE
TO THEIR CREDIT IT ALLOWS THE
CONSUMER TO DO MORE RESEARCH
AND BE ABSOLUTELY SURE ABOUT
THEIR CHOICE AND IT PROHIBITS
MISLEADING ADVERTISING AND
REVIEWS ANTISEPTIC DEBT
SETTLEMENT PRACTICES
FURTHERMORE AT FOURTEEN OH FIVE
ENCOURAGES MARKETPLACE
COMPETITION AND LEVEL THE
PLAYING FIELD BY REQUIRING ALL
THE GOVERNMENT COMPANIES
OPERATING CALIFORNIA. TO COMPLY
WITH THE SAME SET OF RULES THIS
RESULT. IN MORE OPTIONS FOR
CONSUMERS. SIMILARLY THE CARGO
OF EIGHTY PORTANTINO FIVE WILL
THAT LITTLE BECOMES SAFE
PRODUCT MORE IMPORTANTLY ABLE
PROVIDE REMEDIES FOR CONSUMERS
INJURED BY THAT ACTORS. FINALLY
BANK LENDERS AND OTHER
FINANCIAL INSTITUTIONS ARE
REGARDED AS SAFE FINANCIAL
SERVICES BECAUSE THEY ARE
HEAVILY REGULATED. AT THAT
MOMENT BECOMES MORE MAINSTREAM
ENSURING THAT IT IS SAFE FOR
CONSUMERS WILL ACTUALLY GIVE
CALIFORNIANS MORE OPTIONS TO
MANAGE THEIR TAX. I
RESPECTFULLY URGE YOUR I PUT.
THANK YOU FOR YOUR TESTIMONY WE
WILL NOW HEAR FROM WITNESSES IN
OPPOSITION I REMIND WITNESSES
THAT YOU HAVE TWO MINUTES OUR
FIRST WITNESS IN OPPOSITION
WILL BE TESTIFYING OVER THE
PHONE. MODERATOR PLEASE CONNECT
US WITH MARGARET BLASTING ON
BEHALF OF AMERICAN FAIR CREDIT
COUNCIL WHO WILL TESTIFY ON AB.
FOURTEEN ZERO FIVE. THANK YOU
MR CHAIRMAN MEMBERS MARGARET
LASTING HERE ON BEHALF OF THE
AMERICAN FAIR CREDIT COUNCIL
THE TRADE ASSOCIATION
REPRESENTING DEBT SETTLEMENT
INDUSTRY WE ARE OPPOSED AB
EIGHT FOURTEEN OH FIVE. I WANT
TO THANK THE CHAIR COMMITTEE
STAFF FOR THEIR THOROUGH AND
THOUGHTFUL ANALYSIS AND
APPRECIATE THE AUTHOR'S
WILLINGNESS TO STEP EXCEPT THE
PROPOSED AMENDMENT WHICH
ADDRESS SOME OF OUR BIGGEST
CONCERNS. DEBT SETTLEMENT
OFFERS FINANCIALLY DISTRESSED
CONSUMERS AN OPTION TO AVOID
BANKRUPTCY IN TWENTY NINETEEN
THE INDUSTRY CENTER NEARLY HALF
A BILLION DOLLARS OF DEBT FOR
MORE THAN TWO HUNDRED THOUSAND
CALIFORNIANS TYPICALLY SAVING
THEM THIRTY FOUR CENTS ON THE
DOLLAR INCLUDING FEET. INDUSTRY
EMPLOYS ABOUT THIRTY FIVE
HUNDRED PEOPLE IN THE STATE
THAT SENTIMENT IS GOVERNED BY
REGULATIONS ESTABLISHED BY THE
OBAMA ERA FEDERAL TRADE
COMMISSION. AMONG OTHER THINGS
THOSE REGULATIONS PROHIBIT DEBT
SETTLEMENT PROVIDERS FROM
COLLECTING ANY FEES UNTIL LIKE
IT'S EXCESSIVELY RUDE BECAUSE
SHARED WITH A CREDIT CARD. THE
CONSUMER HAS ACCEPTED THAT
NEGOTIATION AND IT MADE A
PAYMENT ON THE DEBT FROM AN
ACCOUNT ONLY THE CONSUMER
CONTROL. ACTUALLY HE IS NOT
OPPOSED TO STATE OVERSIGHT ALL
THEY DO WE DO QUESTION THE NEED
FOR THE BELT GIVEN THE PASSAGE
OF AB EIGHTEEN SIXTY FOUR WHICH
GAVE THE FBI THE AUTHORITY TO
REGULATE US. IF THE BILL
DOESN'T DO WE BELIEVE THAT
WOULD BE BETTER PLACEMENT
FINANCIAL CODE WHICH WOULD
PROVIDE BROADER CONSUMER
PROTECTION. WE COULD NOT
OPERATE IN THE TO BE STRUCTURE
CURRENTLY IN AB FORTINO FIVE
BECAUSE IT WOULD PUT S. IN
VIOLATION OF THE FTC RULES. ARE
PLEASED TO SEE THAT STRUCK THEM
FROM THE BILL WE'RE HAPPY TO
WORK WITH THE AUTHOR COMMITTEE
ON A REASONABLE FEE CAP BASED
ON THE PERCENTAGE OF THE ROLE
THAT. THIS TYPE OF THE CAP WILL
PROVIDE CONSUMER PROTECTION
WHILE STILL ENABLING THE
INDUSTRY TO SERVE THOSE WHO CAN
BENEFIT FROM THAT SOME. WE ALSO
WANT TO WORK WITH THE AUTHOR ON
SOME OF THE BILLS OPEN ENDED
DEFINITIONS AND ONEROUS AND
DUPLICATIVE REQUIREMENTS TO
MAKE SURE THAT WE CAN OPERATE
WITHOUT RUNNING AFOUL OF THE
LAW AND BE SUBJECT TO A PRIVATE
RIGHT OF ACTION FOR A MINOR
MISSTEPS AND DOES NOT HARM THE
CONSUMER. WELL ASEC REMAIN
OPPOSED AB OF FOURTEEN OH FIVE
WE ARE COMMITTED TO WORKING
WITH DOCTOR TO ATTEMPT TO
RESOLVE OUR CONCERNS AND
APPRECIATE HER COMMITMENT. TO
WORK WITH THAT. THANK YOU.
THANK YOU YOUR TEST. WE WILL GO
TO OUR- WITH IN OP. IT IS
MICHAEL WITH. FROM DEBT RELIEF
INITIATIVE. YOU WILL BE TESTED.
IN PERSON. PLEASE GO AHEAD
THANK YOU- MY NAME IS MICHAEL
CALLING ON BEHALF OF THE
CONSUMER DEBT RELIEF INITIATIVE
THE LEADING VOICE OF AMERICA'S
DEBT SETTLEMENT INDUSTRY- WITH
ME IF THERE ARE ANY TYPE OF
TECHNICAL QUESTIONS FROM THE
COMMITTEE- WITH ME IS CITY OUR
EYES CHAIRMAN TOMAR SCORED- WE-
ON ON BEHALF OF CITY ALL RIGHT
WE ARE- GRATIFIED AND PLEASED-
THE MEMBER WORKS HAS. ACCEPTED
SOME AMENDMENTS TO THE BILL WE
LOOK FORWARD TO CONTINUING TO
WORK- WITH THE AUTHOR AND THE
SPONSOR TO ARRIVE AT A BILL.
THAT THE INDUSTRY CAN SUPPORT.
RESPECTFULLY AB FOURTEEN OH
FIVE IS A SOLUTION IN SEARCH OF
A PROBLEM. THE PROBLEM FACING
WORKING CALIFORNIA FAMILIES IN
PARTICULARLY IN THE MIDST OF A
PANDEMIC IS THE EVER MOUNTING
THE EVER INCREASING CONSUMER
CREDIT CARD DEBT. DEBT
SETTLEMENT IS NOT OFTEN THAT
STANDS FOR THOSE WORKING
CALIFORNIANS BUT TWAIN INTEREST
RATES THAT ARE SOMETIMES AS
HIGH AS. 3637% AND BANKRUPTCY.
DEBT SETTLEMENT AS AN OPTION
MANY WORKING CALIFORNIAN
FAMILIES AND CONSUMERS FIND
DESIRABLE. THIS THIS COMMITTEE
SHOULD REGARDING ANY.
DISRUPTION TO THE CURRENT
ENVIRONMENT IN THE CURRENT
MARKET PLACE WITH- WITH
RELUCTANCE PARTICULARLY DURING
THIS TIME. THE FEDERAL CONSUMER
FINANCIAL PROTECTION BUREAU
RECENTLY RELEASED ITS TWENTY
TWENTY REPORT. THAT REPORT
FOUND OF THAT DEBT SETTLEMENT
COMPANIES CONSTITUTED
APPROXIMATELY ONE TENTH OF 1%
OF ALL CONSUMER COMPLAINTS TO
THE CFPB. IN IN IN CONTRAST.
ONE MAIN FINANCIAL WHICH IS A
HIGH INTEREST LENDER THE
CHARGES INTEREST RATES. ARE
SOMETIMES AS HIGH AS 36% ONE
MAIN FINANCIAL WHICH IS A
SUPPORTER OF AB FOURTEEN OH
FIVE. HAD FIVE TIMES AS MANY
COMPLAINTS ITSELF. TO THE
CONSUMER FINANCIAL PROTECTION
BUREAU. THE CFPB DATA
DEMONSTRATES THERE'S NO
SYSTEMIC PROBLEM WITH THE DEBT
SETTLEMENT INDUSTRY THE DEBT
SETTLEMENT INDUSTRY IS
REGULATED FEDERALLY BY CFPB AND
THE FEDERAL TRADE COMMISSION
PURSUANT TO THE TSR
TELEMARKETING SALES REGULATION.
DEBT SETTLEMENT PROVIDERS ARE
REGULATED BY THE DFT I AND IF
YOU MAKE YOUR FINAL COMMENTS
THAT WOULD HELP. THANK YOU. BOB.
THE. C. DRI DOESN'T DOESN'T
OPPOSE ANY SENSIBLE BALANCE
CONSUMER PROTECTION I
REGULATION LET'S LET'S BE CLEAR
ABOUT THAT THE INDUSTRY
WELCOMES CLARITY AND STABILITY
TO ITS PRACTICES. TOWARDS THAT
END WE BELIEVE THE LEGISLATURE
GOT IT RIGHT LAST YEAR IN AN
ACTING MAYBE EIGHTEEN SIXTY
FOUR AND CREATING AN- IDF PR
IDF PR IS THE APPROPRIATE STATE
REGULATOR. TO DETERMINE FAIRLY
AND BALANCE COMPETING INTERESTS
TO DETERMINE WHAT THE
APPROPRIATE PRACTICES ARE.
OFFER THE DEBT SETTLEMENT
INDUSTRY AMONGST. ALL OTHER
CONSUMER FINANCIAL PRODUCTS.
FOR THIS LEGISLATURE SHOULD NOT
HAVE TO COME BACK A WEEK BY
STATUTE EVERY YEAR PLEASE
CLOSER PLEASE CLOSER TESTIMONY
OKAY BOB THANK YOU. CHECK TO
CONCLUDE IN THESE IN THESE
TRYING TIMES FOR WORKING
FAMILIES FOR CALIFORNIA WORKING
FAMILIES. WE SHOULD NOT TAKE
AWAY THE OPTION OF. DEBT
SETTLEMENT. FROM WORKING
FAMILIES AT THIS TIME. WE
SHOULD NOT WITH THE THIS
LEGISLATURE SHOULD NOT OFFER
THEM THE CHOICE BETWEEN. 35%
INTEREST RATES OR BANKRUPTCY
DEBT SETTLEMENT IS ONE OFFICE
ON. THAT WE SHOULD PROVOKE
PRESERVER CALIFORNIA'S WORKING
FAMILIES THANK YOU MISTER
MCCLELLAN WE WILL NOW MOVE TO
PUBLIC COMMENT. ARE THERE ANY
WITNESSES IN SUPPORT- IN THE
BACK OF THE CHAMBER OR UP IN
THE GALLERY PLEASE JUST SIMPLY
STATE YOUR NAME AFFILIATION AND
YOUR POSITION. SEEING NONE
OTHER WTNESSES IN OPPOSITION
IN THE BACK OF THE CHAMBER UP
IN THE GALLERY WE STATE YOUR
NAME AFFILIATION A POSITION.
SEEING NINE ARE THERE ANY
WITNESSES IN SUPPORT AT THE
REMOTE TESTIMONY STATION.
HEARING NONE ARE THERE ANY
WITNESSES IN OPPOSITION AT THE
REMOTE TESTIMONY STATION. AND
HEARING NONE MODERATOR ARE
THERE ANY WITNESSES IN SUPPORT
ON THE PHONE OR IN THE QUEUE.
THANK YOU IF YOU WISH TO SHOW
SUPPORT FOR THIS BILL AB ONE
ONE FOUR ZERO FIVE THREE PRESS
ONE AND THEN ZERO AGAIN USING
YOUR TELEPHONE KEYPAD PLEASE
PRESSONE THEN ZERO FOUR
SUPPORT AT THIS TIME. FOR THE
FIRST TIME LINE NINETY NINE
ZERO YOUR LINE IS OPEN. MY
NINETY WOULD YOU LIKE TO STATE
YOUR POSITION. HELLO CHAIR AND
MEMBERS JAMIE LEVINE CALLING ON
BEHALF OF ELDER LAW AND
ADVOCATE THE RECORDS HERE HI
VOTE ON BILL AB FORTINO FIVE
THANK YOU. WE'LL GO NOW TO LINE
EIGHTY THREE EIGHT THREE YOUR
LINE IS OPEN. THANK YOU CHAIRED
MEMBERS HAD MERMAN FROM THE
PUBLIC GOODS LAWCENTER IN
STRONG SUPPORT. WE'LL GO TO
LINE EIGHTY FIVE EIGHT FIVE
YOUR LINE IS OPEN. HI THIS IS
MICK RITTENBERG ON BEHALF OF
THAT STATIC LEGAL SERVICES IN
STRONG SUPPORT AND EIGHTY
FOURTEEN OH FIVE THANK YOU.
NEXT IN LINE NINETY SEVEN NINE
SEVEN PLEASE GO AHEAD.
AFTERNOON THIS IS BILLY FARING
FROM THE PUBLIC LAWCENTER IN
ORANGE COUNTY IN STRONG SPPORT
AT EIGHTY FOURTEEN OH FIVE.
LINE ONE OH NINE ONE HUNDRED
NINE. CHRIS WROTE ON BEHALF OF
ONE MAIN FINANCIAL INSTRUCTABLE
THE BILL. LINE ONE ON THREE
YOUR LINE IS OPEN. HELLO TO
LINE SIX FIVE SIXTY FIVE. GOOD
AFTERNOON CHAIR MEMBERS DANIEL
GUTIERREZ ON BEHALF OF THE
CONSUMER FEDERATION OF
CALIFORNIA IN SUPPORT. LINE
EIGHTY TWO EIGHTY TWO PLEASE GO
AHEAD. GOOD AFTERNOON CHAIR
AND- MEMBERS QUICK JOHNSON
ROBERT CALLING ON BEHALF F THE
UNIVERSITYOF CALIFORNIA IRVINE
SCHOOL OF LAW CONSUMER LAW
CLINIC ON BEHALF OF OUR CLIENTS
WE STRONGLY URGE HER AYE VOTE
ON AB FORTINO FIVE. IN THE
FINAL LINE IN Q. FOUR
SUPPORTERS LINED ONE HUNDRED
ONE ZERO ZERO YOUR LINE IS OPEN.
KAPANEN AHMEDABAD CALLING ON
BEHALF OF PUBLIC COUNCIL WE ARE
SURE I DON'T. WHAT WOULD YOU
KNOW LIKE TO OPEN THE PHONES
FOR OPPOSITION. YES PLEASE
WITNESSES IN OPPOSITION. THANK
YOU STUPID TO STATE YOUR
POSITION OF OPPOSITION FOR A BI
FOURTEEN OH FIVE PLEASE PRESS
ONE THEN ZERO AT THIS TIME BUT
AS ONE FOLLOWED BY ZERO PLEASE.
YOU JUST REPEAT THE COMMANDERS
ONE OF THEM ZERO LOOKS LIKE WE
DO HAVE TWO LINES IN Q. ONE
MOMENT. WE'LL GO FIRST TO LINE.
ONE HUNDRED EIGHTEEN. I
APOLOGIZE THEY CAN'T HEAR ME AT.
NINE ONE ONE EIGHT TWENTY
EIGHTEEN YOUR LINE IS OPEN.
THIS WHICH S. S. S. LINE ONE
EIGHTEEN YOUR LINE IS OPEN S.
S. S. S. THIS WHICH IT IS SINCE
ALL RIGHT I'M GOING TO CLOSE UP
ZERO EIGHT THIRTY EIGHT I DON'T
OFTEN WRITE PLAYS. I DON'T
BELIEVE WE'RE THAT BILL AT THIS
TIME. WE'LL GO TO LINE ONE ONE
ONE ONE ONE ELEVEN YOUR LINE IS
OPEN. CAROLINE FEEL HUNTER ON
BEHALF OF NATIONAL DEBT RELIEF
IN OPPOSE OPPOSED AB FOURTEEN
OH FIVE THANK. THANK YOU THERE
ARE NO OTHER LINES IN QUEUE AT
THIS TIME. THANK YOU MODERATOR
WE WILL NOW BRING IT BACK TO
COMMITTEE ARE THERE ANY
QUESTIONS OR COMMENTS. VICE
CHAIR CHEN YOU ARE RECOGNIZED.
THANK YOU MR- REALLY PREPARES
ONE TO- SAY HOW EXCITED I AM TO
HAVE YOU AS CHAIR OF MAKING
FINANCING BEFORE TO MOVING
FORWARD AS A UNDER LEADERSHIP
AND GUIDANCE- YOU HAVE A
QUESTION. FOR THE OFFICE OF THE
BILL A REALLY PRETTY BRING THIS
UP I HAD A CHANCE TO DO SOME
RESEARCH ON DEBT SETTLEMENT
AND- WE LEARNED A LOT MORE THAN
I DID. THE PAST COUPLE WEEKS
AND- IT'S MY UNDERSTANDING UPON
SOME RESEARCH THAT THE D. S. P.
A. CURRENTLY ALREADY HAS
AUTHORITY TO UTILIZE THEIR-
PROVOCATIVE TO ENFORCE ACTIONS
AGAINST BAD ACTORS. AND DO YOU
BELIEVE THAT A CURRENT YOUR-
LEGISLATION VERBIAGE WOULD BE
BETTER SERVED BY PUTTING THIS
IN THE FINANCIAL CODE AND UNDER
THE FORTY OF THE D. F. YANG AND
HOW THIS HAS THAT SOMETHING
BEEN DISCUSSED WITH YOUR TEAM.
SURE THANK YOU FOR THE QUESTION
YEAH AND IF IT DOES HAVE
AUTHORITY TO REGULATE THE DEBT
SETTLEMENT INDUSTRY- YOU KNOW
THERE ARE MANY THINGS IN THE
CIVIL CODE THAT OUR FINANCIAL
PRODUCTS STUDENT LOANS CREDIT
CARDS ETCETERA SO- THAT WOULD
NOT NEGATE THE FEI FROM DO YOU
HAVE THERE- US ALREADY SUCH. A
DESCRIPTION ADDITIONAL TOOL IN
THE TOOLBOX FOR THEM. AND OUT
OF MY- ONE AND ELSE THAT DOES
HAVE OTHER THOUGHTS. THANK YOU
I'M ABOUT THE GREAT QUESTION SO
I WOULD LIKE TO RETURN IT BUT
LAST YEAR IN WORKING WITH THAT
TERMINATE COMPANIES ON EIGHTY
WO FIVE TWO FOUR WE GET TO
WORK IN THE FINANCIAL CODE OF
THIS AND A COMMON THEME THAT WE
HEARD FROM OPPOSITION. WE HEARD
THAT- THEY ARE YOU KNOW THERE
ARE CONCERNS WERE THAT IS NOT
APPROPRIATE IN THE FINANCIAL
CODE AND- THIS YEAR GIVEN THE
PASSAGE OF EIGHTEEN SIXTY FOUR.
WE BELIEVE THAT WE CAN WORK
WITH THEIR REQUEST FROM LAST
YEAR AND I FIND IT APPROPRIATE
TO GIVE A FILLIP CAL. WITH
REGARD TO THE GST ID DO YOU
HAVE OVERSIGHT OVER DEBT
SETTLEMENT COMPANIES- THE
PREVIOUS STATEMENT BEFORE I MET
APPROPRIATORS LAW AND CURRENTLY
UNDER. EIGHTEEN SIXTY FOUR.
MARK WHAT THE WORD THAT THEY'LL
BE ABLE TO USE THAT SECTION OF
THE CIVIL CODE AT THE TOP OF
MOUNT MERRITT THEIR BROAD
POWERS. BELL WILL NOT. THE
PARKING AT THE FBI NOR WHAT CUT
OFF ANY OF THEIR ABILITIES FOR
ANY RULEMAKING. FOR IMPORTS
MATCHING. THANK YOU- FOR THE
AUTHOR FOR THAT RESPONSE ALSO
SEE THAT IN YOUR BILL THAT
THERE IS A EXEMPTION FOR
ATTORNEYS- HAVE YOU CONSIDERED-
ADDING THAT EXEMPTION- WITH A
WIDER NET FOR ALL CALIFORNIA
LICENSE ATTORNEYS TO HAVE
PRACTICE- DEBT SETTLEMENT
SERVICES OVER THE COURSE OF
THEIR CAREER. I'M SORRY CAN YOU
REPEAT THE QUESTION. I
UNDERSTAND OTHERS AT TWENTY
EXEMPTION YOUR BILL. YEAH LET
ME JUST READ YOU WANT TO CHIME
IN ON THIS ONE. THANK YES I
WOULD THANK YOU- YES THANK YOU
FOR THAT QUESTION STILL THERE
THE REFERENCE TRANSACTION- IN
THE CURRENT LAW WHICH
PREVIOUSLY. MADE EVERYTHING
OVER THE PHONE AND COMPANIES
ATTORNEYS WERE EXEMPTED HOWEVER
WHAT WE FOUND WAS THAT MANY
ATTORNEY DOCUMENTS STATE ARE
THEMSELVES CONDUCTING THAT
PRODUCT SERVICES ALMOST
ENTIRELY IT'S NOT THAT IT'S
INCREMENTAL THEIR PRACTICE. AS
A RESULT BE RETURNING. HAVE NO
OVERSIGHT THEY ARE EXEMPTED
FROM THE CURRENT LAW BY
DEFINITION AND THEY DO NOT WANT
TO THE TSR- LEAVE THE TREES AND
ARE CHARGING EXORBITANT FEES
THEY'RE OPERATING OUTSIDE OF
THE REGULATIONS THAT THAT
OTHER. COMPANIES WOULD HAVE TO
FOLLOW- SIMPLY BECAUSE THEY'RE
AN ATTORNEY AT LAW. IT ALSO
CREATES YOU KNOW AND THE
POSSIBILITY OF A WRITE A LETTER
HAD TECH HE MORNING GOT
GOVERNMENT COMPANY CAN- PARTNER
WITH THE LAW FIRM IN ORDER TO
CIRCUMVENT REGULATION. THIS IS
A COMMON PRACTICE THAT WE'VE
SEEN NEED WE HAD INTELLIGENCE
BY THE INDUSTRY THAT CERTAIN
BAD ACTORS WILL CHANGE THEIR
PRACTICES IN ORDER TO
CIRCUMVENT THE LAW. I DO RESULT
WE FIND THAT ATTORNEYS SHOULD
BE REGULATED JUST LIKE THAT
FROM THE COMPANY THAT IS IN
FACT WHAT THEY ARE DOING NOT
THEY SHOULD NOT HAVE A PUBLIC
CONTENT BECAUSE. OF A BAR LIKE.
IT BEGAN TOWARDS- CREATING MORE
CONTENT IN THE- AND LEVELING OF
THE PLAYING. IT'S REALLY NOT
FORGET COME. ARE COOPER AT
PROPER DENTAL COMPANY'S BE A BY
BY ONCE UP WILL. THAT FOR
ANOTHER CLEAR. TO HAVE. TO-
SACRAMENTO LOS SIMPLY BECAUSE
THEY HAVE A LICENSE ABOUT LIFE.
THANK YOU BYE ST ASSEMBLY
MEMBER WHEN ARE RECOGNIZED.
THANK THANK YOU MISTER CHAIR
I'M I'M I WASN'T WHEN- AB EIGHT
EIGHTEEN SIXTY FOUR WAS PASSED
BUT JUST MY UNDERSTAND IT JUST
PASSED IT WENT INTO EFFECT OF
THIS YEAR THREE MONTHS AGO YEAH.
NOW WE'RE SHOULD WE WAIT TO SEE
JUST AT LEAST LET IT RIDE
THROUGH SO WE CAN SEE YOU DID
THE WORK DID NOT WORK- WHY THE
RUSSIAN GETTING ANOTHER BILL OR
CHANGING THE FORMAT ALL OVER
AGAIN ALMOST. WELL I MEAN YOU
KNOW AS AS I MENTIONED IF YOU
ALREADY HAS THE AUTHORITY TO
REGULATE- AND THIS WILL BE AN
ADDITIONAL SORT OF TWO IN THE
TOOLBOX FOR THEM. YOU KNOW I
WORK ON THIS- IN THIS ISSUE
LAST YEAR BEFORE YOUR RIVALS
WELL WITH A DIFFERENT PIECE OF
LEGISLATION- AND ESSENTIALLY
WHAT WE FOUND IS THAT YOU KNOW
THERE'S VERY LIMITED REGULATION
OF THAT SOME INDUSTRY IN
CALIFORNIA. NINE OTHER STATES
HAVE COMPLETELY BANNED IT
ALTOGETHER- WHICH IS NOT WHAT
OUR INTENT IS AT ALL BUT WE DO
WANT TO TRY TO FIGURE OUT HOW
TO ADDRESS THE SORT OF BAD
ACTORS IN THE SPACE. FORTY
THREE OTHER STATES HAVE- PRETTY
SIGNIFICANT REGULATIONS IN THE
SPACE AS WELL- YOU KNOW AT WORK
I'M HERE TO SEE- D. FEI IN THIS
SPACE I THINK IT'S GOING TO BE
GOOD ULTIMATELY FOR CONSUMERS
OBVIOUSLY- BUT THIS IS- NOT TO
USURP- THEM BUT. TO CREATE
ADDITIONAL TOOLS. THANK YOU. I
NEED AT THAT. APPOINTMENT ONE
BUTTON THAT NUMBER ASSEMBLY
MEMBER AND I REQUEST THAT THANK
YOU VERY MUCH ASSEMBLY MEMBER-
WINS QUESTION WAS ANSWERED BY
ASSEMBLY MEMBER- WICKS SO I
WILL MOVE ON THANK YOU FOR THAT
I WILL MOVE ON TO OUR NEXT
ASSEMBLYMEMBER COMMITTEE MEMBER
AND THAT IS ASSEMBLY MEMBER
PETRIE-NORRIS. MISTER CHAIR I'M
STILL AS THE OTHER NOTED IT IN
YOUR OPENING REMARKS THERE
CERTAINLY THERE ARE BAD ACTORS
IN THIS SPACE AS YOU ALSO NOTED
THERE ARE GOOD ACTORS THAT ARE
PROVIDING. A REAL AND VALUABLE
SERVICE FOR MANY MANY
DISTRESSED CALIFORNIANS I'M IN
MY VIEW IS WE MOVED TO
INTRODUCE ADDITIONAL
REGULATIONS IN THE SPACE I
THINK AFTER JUST BE CAREFUL NOT
TO THROW THE BABY OUT. WITH THE
BATHWATER AS IT WERE- SO I DO
HAVE JUST A COUPLE OF QUESTIONS
TO FIVE THE FIRST IS. IT NOW-
DEBTS AMONG COMPANIES ARE
REGULATED BY THE FEDERAL TRADE
COMMISSION- I'M RECOGNIZING
THAT THAT LEAVES SOME LOOPHOLES
FOR COMPANIES THAT ARE JUST
OPERATING INTEREST STATE. CAN
YOU SPEAK TO TWO THINGS NUMBER
ONE WHAT ARE THEIR
SHORTCOMINGS. OF THIS FTC
REGULATIONS YET- AND IS THERE
N OPPORTUNITY FOR US TO MORE
CLEARLY AND CLEANLY ALIGN OUR
CALIFORNIA REGULATIONS WITH THE
FEDERAL REGULATIONS. SO THAT WE
ESTABLISH STRONG CONSUMER
PROTECTIONS WITHOUT CREATING
KIND OF AT THE PATCHWORK FOR
SURE THE NAVIGATE. YEAH NO I
APPRECIATE THE QUESTION- YOU
KNOW THE SORT OF DAY OLD
REGULATIONS THAT YOU'RE
REFERRING TO FTC- THAT DID COME
IN AND THE OBAMA ERA AS
MENTIONED BY. BY MARGARET- AS
YOU MENTIONED NOT ALL THAT SOME
DEBT SETTLEMENT COMPANIES- ARE-
REGULATED UNDER THEM BECAUSE OF
THE- IN STATE VERSUS INTEREST
DATE ADD DYNAMIC RIGHT. IN
ADDITION TO THAT MANY ADOPT
PRACTICES THAT CIRCUMVENT FTC
PRACTICES AND SO THAT THAT'S
PART OF THE REASON WHY WE THINK
THIS IS IMPORTANT IS TO ENSURE
THAT WE ARE- YOU KNOW.
ADDRESSING THE SORT OF
LOOPHOLES THAT HAVE STARTED TO
EXIST- I ACTUALLY THINK WE NEED
TO BE ALIGNED WITH THE FTC
REGULATIONS I THINK FTC
REVISIONS HOW WE NEED TO BE
UPDATED AS WELL- BUT AS WE MOVE
FORWARD THROUGH THE POLICY
PROCESS WE'RE CERTAINLY MINDFUL
OF THAT WE DON'T WANT TO
CREATE. TO YOUR POINT A
SITUATION WHERE WE HAVE
UNINTENDED CONSEQUENCES WHERE
THE DEATHS OF INDUSTRIES NOT
ALLOWED TO OPERATE ON CAPTAIN
CALIFORNIA RIGHT THAT IS
ACTUALLY NOT THE GOAL AND AS I
MENTIONED IN MY REMARKS. THERE
ARE CUTTING MANY OF THESE
COMPANIES ARE DOING GOOD THINGS
AND ESPECIALLY WHEN WE'RE
SAYING YOU KNOW MANY OF OUR
CONSTITUENTS WHO ARE NEEDING
THE SERVICES RIGHT NOW. BUT WE
ALSO TO MAKE SURE WE'RE DOING
SO IN A WAY THAT- THERE ARE BAD
ACTORS IN THE SPACE RIGHT NOW
AND THAT WE'RE CREATING-
REGULATION THAT WILL CLOSE
LOOPHOLES CREATING FAIRNESS A
LEVEL PLAYING FIELD. I ENSURING
WE DON'T HAVE DECEPTIVE
ADVERTISING PRACTICES AND
THINGS OF THAT NATURE TO INSURE
THAT WHEN CONSUMERS GO INTO
AGREEMENT WITH THE DEATH OF THE
COMPANY. THEY KNOW EVERYTHING
UP FRONT THEY KNOW WHAT THEY'RE
GETTING- AND THERE'S REALLY
BASIC FAIRNESS. AND THE
TRANSACTION OF THEIR ENTRANCE.
WELL THANK YOU THAT AND I A-
AND SHE YOUR COMMENTS. SEPARATE
CALIFORNIA I CONSUMERS AND SO I
WILL. AS AS I HAD TO I WILL BE
SUPPORTING THE BILL TODAY. I'M
AND I AM GRATEFUL TO HEAR THAT
YOU'RE COMMITTED TO CONTINUING
TO WORK WITH THE INDUSTRY. SO
THAT WE DEVELOP REGULATIONS
THAT THAT PROTECT CONSUMERS
BUT- AND LET THESE BUT THE GOOD
ACTORS YEAH. OPERATE WE WILL
HAVE MANY MORE CONVERSATIONS
WITH THE OPPOSITION. THANK YOU.
THANK YOU SENATE MEMBER
PETRIE-NORRIS- RETURNING BACK
TO VICE CHAIR CHEN. THANK YOU
SIR I HAVE ONE FINAL QUESTION
I'D REALLY APPRECIATE THE-
THOSE IN SUPPORT OF WITNESSES-
ANSWERING SOME OF THE QUESTIONS
I HAD AND IT DOES REALLY ANSWER
THAT I DO HAVE ONE QUESTION
JUST FOR WHEN THE WITNESSES IN
OPPOSITION- ONE THESE-
CLRIFICATIONS IS- THIS HAS
BEEN ABLE TO BRING ABOUT MORE
TRANSPARENCY AND OVERSIGHT
WHICH- I MEAN ALSO. OF THE
OPPOSITION IS STATED THAT- THE
HEAVENLY THAT THIS IS SOMETHING
THAT CAN BE DONE- UNDER THE
CURRENT- JURISDICTIONS OF
DEPARTMENT SO I TO SOME CARVE-
FROM ONE THE WITNESSES ANOTHER
MARKETS LAST MAY- INTERN OF HER
PERSPECTIVE ON ON THAT ON MY
STATEMENT. MODERATOR WOULD YOU
PLEASE- CONNECTORS WITH
MARGARET BLASTING TO ANSWER
THAT. ONE NINETEEN HEAR ME YES
GO. THANK YOU VERY QUESTIONS DR-
I DO APPRECIATE IT NEEDS WE
BELIEVE AND THEM HAVE ACTUALLY
ALREADY PROVIDED COMMENTS TO
THE DEPARTMENT OF FINANCIAL
PROTECTION AND INNOVATION ABOUT
THE AREAS WHERE WE SUGGEST THEY
REGULATE US TO ENHANCE CONSUMER
PROTECTION AND THOSE HAVE A LOT
TO DO WITH DISCLOSURES- THIS IS
NEXT MISS WHICH SHALL- I WOULD
NOTE THAT LAST YEAR WE DID IT
WE OPPOSED AB TWENTY FIVE
TWENTY FOUR AND IT CAME TO THIS
COMMITTEE. NOT BECAUSE IT WAS
IN THE FINANCIAL CODE BECAUSE
IT PLACED US IN THE END- UNDER
THE JURISDICTION OF THE PROGRAM
OR SLOT WE PROVIDED MODEL
LEGISLATION- THAT WOULD HAVE
ALSO BEEN IN THE FINANCIAL CO
THAT WOULD HAVE CREATED
STANDALONE LICENSING FOR THE
DEBT SETTLEMENT INDUSTRY AND-
YOU'RE CERTAINLY STILL OPEN TO
THAT DISCUSSION BUT I THINK.
GIVEN THE PASSAGE OF AB
EIGHTEEN SIXTY FOUR LASTYEAR-
I HAVE PLENTY OF CONFIDENCE IN
THE FBI'S ABILITY TO REGULATE
US AND PROVIDE THE TYPE OF
CONSUMER PROTECTION THAT THIS
COMMITTEE ANTICIPATED. WHEN
THEY PASSED THAT BILL LAST LAST
YEAR. THANK YOU FOR THAT AND I
AM LOOKING FOR ANY FURTHER
ADDITIONAL QUESTIONS OR
COMMENTS. FROM COMMITTEE
MEMBERS SEEING AND HEARING NONE.
SOME OF WHICH WOULD YOU LIKE TO
OFFER CLOSING STATEMENTS JUST
M. I'M COMMITTED TO CONTINUE TO
WORK WITH AND TALK TO THE
OPPOSITION- AND WOULD
RESPECTFULLY ASK FOR NINE. I
WANT TO THANK THE AUTHOR OF
STAFF FOR ALL THEIR HARD WORK
ON THIS ISSUE. AND I WANT TO
THANK THE SUPPORTERS IN
OPPOSITION FOR ENGAGING WITH
COMMITTEE STAFF AND TAKING THE
TIME TO REALLY DELVE DEEP INTO
THIS BILL. I BELIEVE IT'S VERY
VERY PRODUCTIVE CONVERSATION
AND THE COMMITTEE IS ASKING FOR
AMENDMENTS TO THIS BILL WHICH
ARE DETAILED IN THE COMMITTEE
ANALYSIS. I DO WANT TO CLARIFY
ONE AMENDMENT WHICH IS THE
AMENDMENT TO REMOVE THE
REFERENCE TO THE PRO RAIDERS
LAW RECAP. I AM NOT STRICTLY
OPPOSED TO A FEE CAP BUT I DO
NOT BELIEVE WHAT IS IN THE BILL
NOW IS THE APPROPRIATE WAY TO
GO. IF THE AUTHOR DOES CHOOSE
TO MOVE FORWARD WITH A BE
CAPPED AT A LATER TIME I ASK
THAT YOU KEEP ME F. COMMITTEE
STAFF INFORMED OF YOUR EFFORTS.
AND I HOPE YOU ARE ABLE TO WORK
COLLABORATIVELY WITH ALL
STAKEHOLDERS. AND JUST TO
CLARIFY- TO THE AUTHOR- YOU ARE
ACCEPTING AMENDMENTS YES I'M
ACCEPTING THAT THANK YOU VERY
MUCH DO I HAVE A MOTION. MOTION
BY ASSEMBLY MEMBER STONE SECOND
BY THE SUMMER BARKHANE. THE
MOTION BEFORE US IS DO PASS AS
AMENDED TO THE ASSEMBLY
JUDICIARY COMMITTEE SECRETARY
PLEASE CALL THE ROLL. GRAYSON
HI GRAYSON AYE CHAN. CHEN NO
BETTER CAN'T WHERE CAN I BURKE.
CHOI CHOI NO CERVANTES. GABRIEL
CRISTINA GARCIA JEAN GARCIA HI
WHEN. NO NO PETRIE-NORRIS
PETRIE-NORRIS HI STONE STONE I
WICKS HI WICKS HI. THE SIX FOOT.
THIS BILL HAS SIX BOTH AND WE
WILL LEAVE IT ON CALL FOR THE
CALL OPEN FOR ABSENT MEMBERS.
WE WILL NOW MOVE TO OUR NEXT
BILL IN FILE ORDER AND IT IS AB
EIGHT SIX NINE. FILE ITEM
NUMBER TWO ASSEMBLYMEMBER BLOOM
WHEN YOU ARE READY. THANK YOU
MISTER CHAIR AND MEMBERS OF THE
COMMITTEE AB EIGHT SIXTY NINE
WOULD EXPAND CALIFORNIA'S
POOLED MONEY INVESTMENT ACCOUNT
THE P. M. I. A. TO INCLUDE
DOLLAR DENOMINATED SOVEREIGN
DEBT OF COUNTRIES WITH STRONG
CREDIT RATING AND
QUALIFICATIONS OF THE NATIONAL
ASSOCIATION. OF INSURANCE
COMMISSIONERS. CURRENTLY PM I A
POLICY SUFFERS FROM LIMITED
INVESTMENT FLEXIBILITY DUE TO
OUTDATED STATUTE AND POLICY.
WHICH ALLOWS ONLY FOR A LIMITED
ARRAY OF INVESTMENT CHOICES.
THE CURRENT INVESTMENT POLICY
WAS WRITTEN DECADES AGO WHEN
THE POOL WAS SMALL AND NEEDED
TO BE KEPT IN THE MOST LIQUID
AND CONSERVATIVE OF INVESTMENTS.
TODAY HOWEVER THE FUNDS HAVE
GROWN TO A POINT WHERE THE
STATE IS LEAVING MONEY ON THE
TABLE DUE TO ITS STRINGENT AND
RESTRICTIVE INVESTMENT
GUIDELINES. AB EIGHT SIX NINE
WOULD CAREFULLY HELP EXPAND
CALIFORNIANS CALIFORNIA'S ARRAY
OF INVESTMENT CHOICES WHILE
ALSO PRIORITIZING
DIVERSIFICATION AND SAFETY. A
BROADER ARRAY OF SAFE
INVESTMENT ALTERNATIVES WOULD
ENHANCE COMPETITION AND ENABLE
THE TREASURY TO RUN MORE
EFFICIENTLY AUTHORIZING
ADDITIONAL STATE INVESTMENT
OPTIONS IS A LOGICAL STEP WITH
LITTLE OR NO INCREMENTAL RISK
TO PUBLIC FUNDS AS ONLY SAFE
LIQUID INVESTMENTS WOULD BE
CONSIDERED. EXPANDING
CALIFORNIA'S INVESTMENT OPTIONS
IS ALSO A NECESSARY IMPROVEMENT
BECAUSE IT REFLECTS A GREATER
NATIONAL SHIFT AS MANY OTHER
STATES INCLUDING OHIO ILLINOIS
INDIANA LOUISIANA OKLAHOMA
GEORGIA COLORADO AND ARIZONA
HAVE ALL INTRODUCED BILL
SIMILAR TO AB EIGHT SIXTY NINE.
LAST YEAR I INTRODUCED A
SIMILAR BILL BUT THE BILL WAS
NEVER HEARD IN COMMITTEE DUE TO
COVERT NINETEEN. SO I RE
INTRODUCED THIS LEGISLATION
IT'S IMPORTANT. GIVEN THAT IT
WOULD EXPAND AND UPDATE
CALIFORNIA'S POLICY FRAMEWORK
AND STATUTES TO ALLOW FOR AN
ARRAY OF INVESTMENT CHOICES
WHILE ALSO PRIORITIZING
DIVERSIFICATION AND SAFETY.
HERE TODAY TO TESTIFY IN
SUPPORT OF- BUT B. AS SOON- IT
IN SUPPORT OF THE BILL OUR
STATE TREASURER FIONA MA AND
KRISTEN TO CALI MORE. THE
DIRECTOR OF THE INVESTMENTS
DIVISION AT THE TREASURER'S
OFFICE. THANK YOU MISTER BLOOM
I DO WANT TO REMIND THE
WITNESSES THAT YOU HAVE TWO
MINUTES EACH OUR FIRST WITNESS
AND SUPPORT IS STATE TREASURER
FIONA MA WHO WILL BE TESTIFYING
FROM THE VIDEO CONFERENCE ROOM
TREASURE MARC THANK YOU SO VERY
MUCH FOR COMING TO SPEAK ON
THIS BILL. I LOOK FORWARD TO
YOUR TESTIMONY YOU MAY BEGIN.
IT MAY BE THAT YOU ARE ON MUTE
SO IF YOU WANT TO ON MUTE.
SORRY OKAY I'D- ACT AS WELL
HERE SO LET ME START AGAIN.
OFFERS OFFICE I'M STATE
TREASURER OF YOUR MOM I'M VERY
HONORED TO BE HERE I AM THE
PROUD SPONSOR OF THIS BILL I
WANT TO THANK THE MEMBER BLOOM
FOR CARRYING THIS IMPORTANT
BILL AS HE MENTIONED- HE WAS
VERY VERY DETAILED IN HIS
TESTIMONY SO I DON'T WANT TO.
REPEAT EXACTLY WHAT HE SAID BUT
TODAY WE HIT AN ALL TIME HIGH
OF A HUNDRED AND THIRTY THREE
BILLION DOLLARS IN OUR PMI A
ACCOUNT AND THAT AMOUNT IS JUST
GOING TO INCREASE AS WE RECEIVE
MORE OF THE FEDERAL STIMULUS
DOLLARS. COMING IN SO THIS BILL
WOULD PROVIDE EIGHT ANOTHER
TOOL IN OUR TOOLBOX- ALLOW US
SOME FLEXIBILITY SOME DIVERSITY
DIVERSIFICATION OPTIONS AND AS
THE ASSEMBLY MEMBER SAID. OHIO
ILLINOIS INDIANA LOUISIANA
OKLAHOMA GEORGIA COLORADO AND
ARIZONA HAVE INTRODUCED SIMILAR
LEGISLATION- TO THIS AB EIGHT
SIXTY NINE ALL OF THESE STATES
HAVE HAD SUCCESS WITH THEIR NEW
POLICIES GETTING
DIVERSIFICATION WITHOUT
SACRIFICING SAFETY AND I WORK
VERY CLOSELY WITH THE
TREASURES. FROM ALL OF THE
FIFTY STATES AND I CAN ATTEST
THAT THIS. HAS PROVIDED
ADDITIONAL FLEXIBILITY AND
DIVERSIFICATION I TO THEIR
INVESTMENT- OP- POLICIES SO
THANK YOU VERY MUCH FOR YOUR
CONSIDERATION AND KRISTEN IS
AVAILABLE IF ANYONE HAS THE
TECHNICAL QUESTIONS OTHERWISE.
WE ARE DONE WITH OUR TESTIMONY.
THANK STATE TREASURER UNUM AND
DID HAVE. KRISTIN TO CALI MORE
AS A SECOND WITNESS ARE YOU
SAYING THAT- THE WITNESSES. NO
**** SHE WILL BE HERE IF ANY OF
THE ANY TECHNICAL QUESTIONS
THAT I CANNOT ANSWER THANK YOU
SO VERY MUCH- WE DO NOT HAVE
ANY PRIMARY WITNESSES IN
OPPOSITION SO WE WILL BE MOVING
ON TO PUBLIC COMMENT. OTHER ANY
WITNESSES IN SUPPORT IN THE
BACK OF THE CHAMBER UP IN THE
GALLERY THE STATE YOUR NAME
AFFILIATION POSITION SEEING
NONE OTHER ANY OPPOSITION IN
THE CHAMBER OR GALLERY SEEING
NONE. OTHER ANY WITNESSES OF
SUPPORT IN THE REST- REMOTE
TESTIMONY STATION. HEARING NONE
ARE THERE ANY WITNESSES IN
OPPOSITION AT THE REMOTE
TESTIMONY STATION HEARING NONE.
MODERATOR OTHER ANY WITNESSES
AND SUPPORT ON THE PHONE OR IN
THE QUEUE. HE TO EXPRESS
SUPPORT ON THE PHONE YOU MAY
PRESS ONE THEN ZERO AGAIN
THAT'S THIS IS TO SUPPORT AB
EIGHT SIX NINE. ONE FOLLOWED BY
ZERO PLEASE. THANK MISTER
JOURNAL LINES IN QUEUE AT THIS
TIME THANK YOU MODERATOR ARE
THERE ANY WITNESSES IN
OPPOSITION. EXPRESSED
OPPOSITION OF AB EIGHT SIX NINE
OR PRESS ONE AND THEN ZERO
AGAIN USING YOUR TELEPHONE
KEYPAD ONE FALL BY ZERO PLEASE.
THEY'RE NOT MINE THEN Q. THANK
YOU MODERATOR WE WILL NOT BRING
IT BACK TO COMMITTEE FOR
MEMBERS FOR QUESTIONS OR
COMMENTS ARE THERE ANY
QUESTIONS OR COMMENTS. SEEING
NONE DOES YOUR THE WISH TO
PROVIDE A CLOSING STATEMENT.
THANK YOU FOR YOUR
CONSIDERATION I RESPECTFULLY
ASK FOR HER AYE VOTE. THANK YOU
SO MUCH ASSEMBLYMEMBER BLOOM I
ALSO WANT TO THANK TREASURER
STAFF FOR WORKING CLOSELY WITH
THE COMMITTEE AND WALKING
THROUGH IN DETAIL WHAT THIS
PROPOSAL WOULD MEAN FOR THE
STATE'S CASH FLOW. INITIALLY I
DID HAVE SOME CONCERNS WITH
THIS PROPOSAL BUT ONE OF THE
MAIN TAKEAWAYS FROM THOSE
CONVERSATIONS BETWEEN OUR
STAFF. WAS THE PROFESSIONALISM
OF THE TREASURE INVESTMENT
TEAM. WITH THAT. DO I HAVE A- I
DO HAVE A MOTION. VICE CHAIR
CHEN AND A SECOND BY ASSEMBLY
MEMBER. PETRIE-NORRIS SO WE DO
HAVE A MOTION A SECOND IT IS TO
PASS THROUGH THE ASSEMBLY
APPROPRIATIONS COMMITTEE
SECRETARY PLEASE CALL THE ROLL.
GRAYSON I GRAYSON AYE CHAN CHAN
I CAN'T WHERE CAN I BURKE. CHOI
CHOI I CERVANTES GABRIEL
CRISTINA GARCIA. CRISTINA
GARCIA I WENT. WHEN I
PETRIE-NORRIS BETWEEN NORTH AYE
STONE. STONE I WICKS. IT HAS A
BUILT. THE BILL HAS A VOTE AND
WE WILL LEAVE IT ON CALL FOR
THE CALL OPEN FOR ABSENT
MEMBERS WE WILL NOW MOVE ON TO
THANK YOU THE CINEMA BLEND WE
WILL NOW MOVE ON TO FILE ITEM
SEVEN AB FOUR TWO FOUR.
ASSEMBLY MEMBER STONE WHEN YOU
ARE READY. THANK YOU MISTER
CHAIR AND MEMBERS THIS IS.
ANOTHER BILL AND IN A LONG
STREAM OF BILLS WHO WERE TRYING
TO PROVIDE SOME BENEFIT TO
STUDENT LOAN BORROWERS IN THIS
CASE THESE ARE PRIVATE STUDENT
LOAN BORROWERS THA WHAT
HAPPENS. OFTENTIMES IS THESE
BORROWERS. GET THEMSELVES OR
THEIR QUESTIONS POTENTIALLY
AROUND THEIR DAD AND THE
COLLECTION AGENCY OR THE
STUDENT LOAN SERVICER BRING
SUIT AGAINST THEM. AND 91% OF
THESE BORROWERS ARE
UNREPRESENTED SO DON'T HAVE THE
BENEFIT OF AN ATTORNEY
EXPLAINING WHAT THAT MEANS WHEN
THEY RECEIVE THAT THAT LAWSUIT-
THAT CLAIM. SO WHAT OFTEN THE
COLLECTION AGENCY OR THE
STUDENT SERVICER WILL THEN SEEK
A DEFAULT JUDGMENT AND BECAUSE
THE BORROWER DOES NOT KNOW
ENOUGH TO RESPOND THAT DEFAULT
JUDGMENT IS ENTERED OFTENTIMES
THOSE DEFAULT JUDGMENT THAT THE
EVIDENCE UPON WHICH THOSE
JUDGMENTS ARE BASED OR FAULTY
BUT ONCE THE JUDGMENT IS
ENTERED. THE QUESTIONS ABOUT
THE DOCUMENTATION OR NO LONGER
RELEVANT AND THE BORROWER IS
STUCK HAVING TO PAY OFF OR DEAL
WITH THE FACT THAT THERE'S A
DEFAULT JUDGMENT WHAT WE'RE
DOING IN THIS BILL IS ENSURING
THAT KNOWING THAT MOST OF THE
THESE CASES ARE UNREPRESENTED.
BORROWERS IS ENSURING THAT THE
COLLECTION AGENCIES TO NON
SERVICER WHOEVER'S BRINGING
THAT CASE TO COURT. HAS TO
ESTABLISH THAT THEY OWN ALONE
THAT THEY HAVE A RIGHT TO BE
MAKING THIS CLAIM THAT THIS IS
THE CORRECT DEBTOR APPROPRIATE
IDENTIFICATION SO THAT THE
COURT THEN HAS AN APPROPRIATE
RECORD. TO STAND UP FOR MAKING
THAT THAT DEFAULT JUDGMENT SO
WHAT HAPPENS OFTENTIMES AND IN
THE WHAT A LOT OF THE RESEARCH
SHOWS IS MANY OF THESE CASES.
B. THE PARTY THAT BROUGHT THE
CASE TO COURT DIDN'T ACTUALLY
HAVE COULDN'T PROVE THAT THEY
EVEN OWN THE DEBT AND AFTER
HAVE MADE THE CASE. THIS IS A
GREGIS. WHEN DOES THESE
DEFAULTS GET ENTERED INTO IT
BECOMES SORT OF AN ASSEMBLY
LINE IF YOU WILL OF CASES JUST
TO COLLECT ON DEBTS. THAT THE
PARTY MAY NOT EVEN HAVE A-
ADEQUATELY ESTABLISHED THAT
THEY ARE- THAT THAT. SO THIS
BILL IS TO REMEDY THAT
SITUATION AND ENSURE IT'S AN
EVIDENCE BILL TO ENSURE THAT IN
THAT CLAIM. THAT THE SERVICER
OR THE DEBT COLLECTION AGENCIES
MAKING THAT THEY PUT IN RECORD
ENOUGH EVIDENCE TO ESTABLISH
THEY IN FACT ARE THE OWNERS OF
THE DEBT THERE'S ENOUGH
INFORMATION THERE. THAT IF THEN
THERE'S A DEFAULT JUDGMENT. WE
KNOW THAT IT WILL BE MORE
LIKELY TO BE A- A TRUE. CASE
AND A AND AN APPROPRIATE
DEFAULT JUDGMENT THAT'S WHAT
WE'RE TRYING TO DO IN THIS CASE
WE'RE TRYING TO PROTECT
BORROWERS. FROM WHAT AMOUNTS TO
SOME PREDATORY PRACTICES
AGAINST THEM BY STUDENT LOAN
SERVICING ORGANIZATIONS AND-
THAT OTHER CREDITORS AND DEBT
COLLECTION AGENCIES I ASK FOR
YOUR . BOATS. BUT I DO HAVE
SOME WITNESSES MISTER CHAIR.
MIKE HERE TO THE STUDENT LOAN
BORROWER PROTECTIONS CENTER AND
ROBERT SMITH OF THE LEGAL AID
FOUNDATION OF LOS ANGELES.
THANK YOU ASSEMBLY MEMBER STONE
AYE I DO WANT TO REMIND THE
WITNESSES THAT YOU HAVE TWO
MINUTES EACH. OUR FIRST WITNESS
AND SUPPORT WILL BE TESTIFYING
OVER THE PHONE MODERATOR PLEASE
CONNECT US WITH MIKE PEERS FROM
THE STUDIO ARA PROTECTION
CENTER WHO WILL TESTIFY ON A.
B. FOR TWENTY FOUR. YOU MAY
BEGIN. THANK YOU VERY MUCH-
THANK YOU CHECK GRAYSON BY
CHURCH AND MEMBERS OF THE
COMMITTEE. HI MY NAME IS MIKE
PEARSON ON THE POLICY DIRECTOR
OF THE STUDENTS ARE ACTUALLY
THERE. WERE A NATIONAL
NONPROFIT COMMITTED TO ENDING
THE STUDENT DEBT CRISIS AND I'M
HERE TODAY BECAUSE OUR
ORGANIZATION TO SPONSOR. AND
SUPPORTER OF AB FOUR TWENTY
FOUR. EIGHTY FOUR TWENTY FOUR
BUILDING IMPORTANT GAP REMAINS
IN CALIFORNIA LAW THE FATE OF
PRIVATE STUDENT LOAN BORROWERS
IN DEFAULT. I DID WAS. FIX
FIFTY THOUSAND. STUDENT LOAN
BORROWERS WHO OWE MORE THAN TEN
BILLION DOLLARS AND PRIVATE
STUDENT LOAN DEBT. REMAIN
VULNERABLE TO ABSOLUTELY
SHOCKING RANGE OF ABUSES IF
THEY FALL BEHIND ON THE STEPS.
BEFORE I CO FOUNDED THE
STUDENTS ARE PROTECTIONS THAT I
SPENT SEVEN YEARS AS AN
ATTORNEY AT THE FEDERAL
CONSUMER FINANCIAL PROTECTION
BUREAU. WHICH LAW ENFORCEMENT
ACTION AGAINST THE BIGGEST
ABUSER OF CALIFORNIA COURTS.
THE NATIONAL COLLEGIATE LOAN
TRUST. NCLT ALONG WITH THE OUT
OF STATE NOW. CREDITORS LIKE AT.
HAVE PILED. OF IN. COURT TO
PASS BY THE. IN THE CFPB'S LET
WHAT TO GET NTFL. THE BUREAU
FOUND THAT THE COME FILED FOR
SEVENTY IN STATE COURTS AND
LACK DOCUMENTS TO BACK UP
THOUSANDS OF CASES. RECENT
RESEARCH BY OUR PARTNERS AT UC
IRVINE CONSUMER LAW CLINIC
SHOULDN'T ACTIONS BROUGHT BY
NCLT ITS PEERS PULLING 90% OF
CASES. IN 90% OF CASES FARMERS
LACKED LEGAL COUNSEL. THESE TWO
WISHES IN COMBINATION THE LACK
OF LEGAL COUNSEL ANY ABUSIVE
CALIFORNIA COURTS CREATE AN
UNMITIGATED DISASTER THE MOST
VULNERABLE BORROWERS TOO MANY
OF HIM DISCOVERED AFTER THE
FACT THAT THE WAGES WERE
GARNISHED PROJECTS. THAT WERE
UNDOCUMENTED OR INVALID. I
UNDER THE CAL BNKER AND CREDIT.
ARE HERE TO OPPOSITION. I WANT
TO CONCLUDE BY EMPHASIZING THAT
THE MAJOR DRIVERS OF THESE
PIECES ARE NOT CALIFORNIA BANKS
AND THEY'RE NOT CALIFORNIA
CREDIT NEEDS. AND HE IS NOT A
BANK AT ALL BUT THE LOAN STEP
INTO THESE TRUCKS WERE MADE BY
THE BIGGEST BANKS IN THE WORLD.
JPMORGAN CHASE BANK OF AMERICA
US BANK. BANK MADE SUBPRIME
STUDENT LOANS WERE PASSED UP TO
INVESTORS BARBER STRUGGLE TO
REPAY AND DECADES LATER THIS
CASE CONTINUE TO CALL
CALIFORNIA COURTS AND HER
CALIFORNIA BARBERS. BIG BANKS
AREN'T FILING THIS LAWSUIT THE
LAWSUIT FOR A LEGACY OF
PREDATORY LENDING MY BIG OUT OF
STATE AND NATIONAL BANKS.
FORTUNATELY EIGHTY FOR TWENTY
FOUR ONE AND NEED TO BE IF IT
WAS JUST AS MR STUBBS SCRAPPED.
WE STRONGLY SUPPORT THIS BILL I
WONDERED I THOUGHT ON A BEFORE
TWENTY FOUR. CALIFORNIA STUDENT
LOAN BORROWERS. CANNOT AFFORD
TO BE LONGER. THANK YOU ARE SO.
WOULD SINCE OF. WILL BE TEST OF
OVER THE FOR. MODERATOR CONNECT
US WITH ROB SMITH FROM THE
LEAGUE AID FOUNDATION LOS
ANGELES. HELLO MY NAME IS ROBIN
I AM A SENIOR ATTORNEY AT THE
LEGAL AID FOUNDATION OF LOS
ANGELES WHERE I FOCUS
EXCLUSIVELY ON THE ELIMINATION
LOW INCOME STUDENT LOAN
BORROWERS. I'VE BEEN
REPRESENTING BUYERS AND PRIVATE
STUDENT LOAN COLLECTION ACTION
IT'S TWENTY THIRTEEN AND HAD
BEEN MANY COMMON IN PIECES.
DURING THIS TIME- D. THAT USES.
I HAVE HAD A LOOK MORE CASES
INVOLVING MANY DIFFERENT
PLAINTIFFS INCLUDING
SECURITIZED LOAN TRUST LIKE THE
NATIONAL COLLEGIATE STUDENT
LOAN TRACKER AND NAVVY IT.
DIFFERENT THAT BUYERS AND
INSURANCE COMPANIES AND OTHER
BUSINESSES THAT GUARANTEE
PAYMENTS ON DEFAULTED STUDENT
LOANS. THE COLLECTION PIECES WE
HAVE IN OUR COMMON AMONG ALL
THE DIFFERENT TYPES OF PLANTS.
WE SUPPORT AB TWENTY FOUR
BECAUSE IT WILL PREVENT PRIVATE
STUDENT LOAN HOLDERS FROM
ABUSING THE JUDICIAL PROCESS BY
FILING DEBT COLLECTION WHAT
PEOPLE AND THEY LACK THE
EVIDENCE NECESSARY TO MAKE A
PRIMA FACIA CASE FOR BREACH OF
WRITTEN CONTRACT. I WANT TO
SHARE TWO THREE STORY TO
ILLUSTRATE THE TYPES OF HARM
THAT RESULTS FROM THESE CATERS
TO LOW INCOME STUDENT LOAN
BORROWERS. BUT I HAVE TO CHANGE
THE NAME FOR THEIR
CONFIDENTIALITY. THE FIRST CASE.
I NOT ALREADY A SINGLE.
ACCORDING TO. ON A LOW. JOB IN
TWENTY SIX. A JEEP JUDGE OF
THIRTY THOUSAND DOLLARS WOULD
ENTER AGAINST FOR A- STUDENT
LOAN SHE OBTAINED ATTEND. IN
AND TO THE SEVEN. EVEN THOUGH
THE PLAINTIFF LIKELY LACK
EVIDENCE THAT IT LOAN HELLO.
SHE CONTACTED OUR OFFICES FOR
HELP BECAUSE HER EMPLOYER HAD
BEEN GARCIA 25% OF HER
DISPOSABLE PAPER OVER TWO
YEARS. AND AS A RESULT SHE WAS
STRUGGLING TO PAY HER RENT AND
OTHER BASIC LIVING EXPENSES. WE
DISCOVERED THAT HER EMPLOYER
HAD APPLIED THE INCORRECT
GARNISHMENT FORMULA AND
ILLEGALLY GUARDS OVER NINE
THOUSAND DOLLARS. WELL WE WERE
ABLE TO GET THIS AMOUNT
REFUNDED AND STOP THE
GARNISHMENT. ALL RESIDENTS
WAITED MAY STILL BE GARNISHED
BECAUSE OUR PAYMENTS ARE LIKELY
TO COVER THE ANNUAL INTEREST AS
IT ACCRUES. THE DEBT WILL GROW
EVEN AFTER WAGES ARE BEING
GARNISHED TO REPAY IT. SHE ALSO
CANNOT DISCHARGE. THE DEBT YOU
BANKRUPT THE- AND SECOND CASE
START IN TWO THOUSAND. MISTER
JOHN TAKES FIVE STUDENT LOANS
AND ARE YOU WITH. HE STARKLY
COLLEGE BOARD WHICH CLOSE BY BY
MOTHER. NEITHER MR NO HIS
MOTHER COULD HAVE TO EAT MY WE
PAY AND DID NOT HAVE ANY AFFORD
REPAYMENT OPTIONS. IN MID
TWENTY NINETEEN MISTER JOHNSON
WITH THIRD WITH SIX DIFFERENT
LAWSUIT IN WHICH THE
PLAINTIFFS. VALLEY NAY STUDENT
LONG TREK. HOLDEN DAMAGES OF
SEVENTY SEVEN THOUSAND DOLLARS
FOR BREACH OF WRITTEN CONTRACT.
HIS MOTHER WAS THERE BEFORE. IN
DISCOVERY PLAINTIFFS COULD NOT
PRODUCE ANY OF THE TERMS OF THE
PROMISSORY NOTES OR ANY
DOCUMENT SHOWING TRANSFER OF
THE LAND FROM. THE ORIGINAL
LENDERS TO THE PLAINTIFF. WHEN
I TOLD ME THAT. THE I PLAN TO
BECOME A JUDGE- DATA. ALL SIX
LONG. PLEASE BRING YOUR
INSURANCE. CHAU OKAY EIGHT
TWENTY FOURTEEN FOUR TO
ENSURING LOW INCOME LOAN BY
MOST OF WHOM ARE AND TO LEGAL.
DO NOT FACE A LIFE OF WAGE
GARNISHMENT THE PATH HE THOUGHT.
THAT THEY DO NOT LEGALLY- THANK
YOU FOR THIS OPPORTUNITY
TESTIFIED. THANK YOU FOR YOUR
TESTIMONY WE WILL NOW MOVE ON
TO WITNESSES IN OPPOSITION. OUR
FIRST WITNESS IN OPPOSITION
WILL BE TESTIFYING OVER THE
PHONE MODERATOR PLEASE CONNECT
US WITH ROBERT WILSON ON BEHALF
OF THE CALIFORNIA CREDIT UNION
LEAGUE. GOOD AFTERNOON CHAIR
MEMBERS ROBERT WILSON WITH A
CALIFORNIA CREDIT UNION LEAGUE.
THANK YOU FOR THE OPPORTUNITY
TO OFFER SOME BRIEF COMMENTS IN
OPPOSITION TO AB FORTY FOUR.
CREDIT UNIONS ARE NOT FOR
PROFIT MEMBER OWNED
COOPERATIVES THAT SOLE PURPOSE
OF EXISTENCE IS TO SERVE THEIR
MEMBER OWNERS. CREDIT UNIONS
STILL OFFER STUDENT LOANS AS A
SERVICE TO THE MEMBERS AND THEY
OFFER THURMOND AT VERY
COMPETITIVE RATES COMPARED TO
THE FEDERAL GOVERNMENT. AS
ORIGINATORS IN THESE LOANS. AND
DUE TO THE UNIQUE STRUCTURE
CREDIT UNIONS AND IT'S IN THE
BEST INTEREST OF THE
INSTITUTION TO WORK WITH
BORROWERS. BUT IN SOME
INSTANCES QUITE UNIONS MUST.
INITIATE COLLECTION ACTION TO
COLLECTED THAT. WELL WE
UNDERSTAND THE INTENT OF AB
FOUR TWO FOUR. AND AGREE WITH
PROTECTING STUDENT LOAN
BORROWERS WE MUST UNFORTUNATELY
OPPOSED THE BILL TODAY. THE
LADY WITH THE ITEM
DOCUMENTATION LISTED IN THE
BILL THAT PRIVATE EDUCATION
LENDERS WOULD HAVE TO PROVIDE
APPEAR TO BE AN ATTEMPT TO
INVALIDATE THE JUDGMENT DEBT IN
THE EVENT THAT A CREDIT UNION
ENDED BURKE NEWLY. ADMITTED ONE
OF THESE DOCUMENTS. BECAUSE
THIS WILL MAKE A COLLECTION OF
THESE BALLOT THAT'S MORE
DIFFICULT FOR CRISES THAT ARE
SERVICING THEIR MOMS. THE
CALIFORNIA CREDIT UNION LEAGUE
AGREES WITH PROTECTING STEVEN
BARS SO MUCH RESPECTFULLY
OPPOSE AB FORTY FOUR TODAY AND
ASK FOR NO FAULT. THANK YOU.
THANK YOU OUR SECOND WITH US IN
OPPOSITION WILL ALSO BE
TESTIFYING OVER THE PHONE.
MODERATOR PLEASE CONNECT US
WITH MELANIE CUEVAS ON BEHALF
OF CALIFORNIA BANKERS
ASSOCIATION. SURE NUMBER THANK
YOU FOR THE OPPORTUNITY TO
PARTICIPATE IN TODAY'S HEARING
THE OTHER VIRTUAL FORMAT I AM
NOT ON THE PREVIOUS TO THE-
TEACHERS ASSOCIATION. AND WE
ARE ALSO IN REGARDS TO
OPPOSITION TO MEASURE ET FOUR
TWO FOUR I WAS PROVISIONS HAVE
THE ABILITY TO SERIOUSLY IMPEDE
A LENDER'S ABILITY TO COLLECT
ON A BALLOT PRIVATE STUDENT
LOAN DEBT. IT IS WORTH NOTING
THAT FEDERAL STUDENT LOANS ARE
MADE SOLELY BY THE U. S.
GOVERNMENT AND THEIR TERMS
CONDITIONS AND DISCLOSURE
REQUIREMENTS FOR FEDERAL LOAN
ARE GOVERNED BY THE HIGHER
EDUCATION ACT. THE V. EIGHT
MEMBERS PRIVATE LENDERS MUST
COMPLY WITH THE TRUTH IN
LENDING ACT WHICH WHICH THAT.
VERY COMPREHENSIVE LOAN
ORIGINATION DISCLOSURE
REQUIREMENTS THEY'RE EVEN MORE
VIGOROUS THAN THOSE WITH AGA
WHILE WE APPRECIATE THE
AUTHOR'S DESIRE TO PROVIDE
CERTAIN DOCUMENTATION IN
INITIATING A COLLECTION ACTION
WE ARE CONCERNED ABOUT THE
INHERENT DIFFICULTY THAT THIS
MEASURE WILL COSTS FOR LENDERS
COLLECTING ON THEIR OWN THAT.
AND THE POSSIBILITY THAT UNDER
THIS MEASURES PROVISIONS
LEGITIMATE THAT COULD BE
INVALIDATED DUE TO SIMPLE HUMAN
ERROR INCLUDING MINOR ERRORS IN
PAPERWORK OR DOCUMENTATION. THE
FOUNDERS APPOINTED TO ISSUES
WITH OUTSIDE BONE THERMISTORS
YOU ARE NOT THE ORIGINAL
CREDITOR AS WELL AS NON BANK
LENDER HOWEVER THIS MEASURES
IMPACT THEIR FAR MORE BROAD.
INCLUDING YOUR REMAIN OPPOSED
TO THE MEASURE AND RESPECTFULLY
ASK FOR YOUR NO VOTE WE ALSO
LOOK FORWARD TO WORKING WITH
THE AUTHOR AND SPONSOR OF THE
MEASURE TO FINE TUNING THE
IMPACT OF THIS LEGISLATION
THANK YOU. THANK YOU AND WE
WILL NOW BE MOVING ON TO PUBLIC
COMMENT. ARE THERE ANY
WITNESSES IN SUPPORT IN THE
BACK OF THE CHAMBER OR GALLERY
PLEASE SIMPLY STATE YOUR NAME
AFFILIATION AND POSITION.
SEEING NONE ARE THERE ANY
WITNESSES IN OPPOSITION OF THE
BACK OF THE CHAMBER OR IN THE
GALLERY SEEING NONE. ARE THERE
ANY WITNESSES IN SUPPORT. AT
THE REMOTE TESTIMONY STATION.
HEARING NONE ARE THERE ANY WITH
AND I. AT THE TO. STAY AND
HEARING NINE MAR. OTHER ANYWAY
IN SUPPORT ON THE FOR OR IN THE
CASE. THANK YOU TO STATE
SUPPORT FOR A BI FOR TO FOR ME
PRESS ONE THEN ZERO ON YOUR
TELEPHONE KEYPAD AS ONE
FOLLOWED BY TWO ZERO. WE'LL GO
FIRST TO LINE ONE HUNDRED
THIRTY ONE ONE THREE ONE YOUR
LINE IS OPEN. GOOD AFTERNOON
CHAIR AND MEMBERS DANIELLE
CANDOR CARTER ON BEHALF OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION IN SUPPORT. NEXT WE
HAVE LINE NINETY SEVEN NINE
SEVEN PLEASE GO AHEAD. THAT
AFTERNOON SHARING MEMBERS
COMPLETELY PARENTS ON THE
PUBLIC LAWCENTER IN ORANGE
COUNTY IN SUPPORT AND EIGHTY
FOUR TWENTY FOUR. NOW WE HAVE
LINE ONE HUNDRED THIRTY TWO ONE
THREE TWO PLEASE GO AHEAD.
HELLO THIS IS KEVIN IN SCOPE
FRIENDS COMMITTEE ON
LEGISLATION OF CALIFORNIA IN
SUPPORT THANK YOU. NOW WE'RE
GOING TO LINE ONE THIRTY FOUR
ONE THREE FOUR. THE OTHER THING
THE NEXT THING CALIFORNIA
PROJECT A CO SPONSOR IN STRONG
SUPPORT. BY. NINETY FIVE NINE
FIVE. KIMBERLY ROSENBERGER WITH
AT THE ARE YOU CALIFORNIA AND
SOME SUPPORT. NINE ONE
SEVENTEEN ONE ONE SEVEN YOUR
LINE IS OPEN. CHARLES BELL WITH
CONSUMER REPORTS IN STRONG
SUPPORT. NINE ONE THIRTY THREE
ONE THREE THREE. GOOD AFTERNOON
JACK RECORD OVER THE CALIFORNIA
DENTAL ASSOCIATION ALSO IN
SUPPORT. LINE. ONE THIRTY SEVEN
ONE THREE SEVEN. HI THIS
INCLUDING REPRESENTING STUDENT
DEBT CRISIS AND OVER TWO
MILLION SUPPORTERS ACROSS THE
COUNTRY AND I'M CALLING IN TO
EXPRESS OUR STRONG SUPPORT.
LINE. ONE THIRTY FIVE ONE THREE
FIVE. LUCY THOUGHT PETER CARTER
WITH THE CALIFORNIA ASSOCIATION
OF NONPROFITS IN STRONG SUPPORT
OF AB FOUR TWO FOUR THANK YOU.
LINE. ONE THIRTY SIX ONE THREE
SIX. NECKTIE A BRAND THAT WE
HAVE THE STUDENT DEBT CRISIS
PROUD CO SPONSOR CALLING ON BE
INSTRUCTED ON BEHALF IN STRONG
SUPPORT. ONE ONE THIRTY EIGHT
ONE THREE EIGHT. WHY ARE YOUNG
PEOPLE AND PROPERTIES THEY'RE
CALLING IN SUPPORT OF AB WHAT.
LINE. SIXTY FIVE SIX FIVE.
DANIEL GUTIERREZ ON BEHALF OF
THE CONSUMER FEDERATION OF
CALIFORNIA IN SUPPORT. THEY'RE
NOT FOR THE LINES IN SUPPORT.
THANK YOU MODERATOR ARE THERE
ANY WITNESSES IN OPPOSITION.
THE LEGISLATURE OPPOSITION TO A
P. FOR TWO FOR OVER THE PHONE
PRESS ONE FOLLOWED BY ZERO
AGAIN THAT'S ONE AND THEN ZERO
ON YOUR TELEPHONE KEYPAD. TURN
ONLINE TO QUEUE AT THIS TIME
THANK YOU MODERATOR WILL BRING
IT BACK TO COMMITTEE FOR
QUESTIONS OR COMMENTS FROM
COMMITTEE MEMBERS. SO I DO HAVE
A MOTION AND A SECOND DOES YOUR
OTHER WOULD WISH TO PROVIDE A
CLOSING STATEMENT. I JUST ASK
FOR YOUR I'VE OF THANK YOU.
THANK YOU SO VERY MUCH FOR YOUR
TESTIMONY TODAY AND FOR
BRINGING THIS BILL FORWARD.
WITH THAT I DO HAVE A MOTION
FROM. ASSEMBLY MEMBER CERVANTES
AND A SECOND FROM ASSEMBLY
MEMBER OF OUR KM. THE MOTION
BEFORE US IS TO PASS TO THE
ASSEMBLY JUDICIARY COMMITTEE
SECRETARY PLEASE CALL THE ROLL.
GRAYSON AYE GRAYSON AYE CHAN.
CHEN NO PARA CAN'T BEAR CAN I
BURKE BURKE I CHOI. CHOI NO
CERVANTES CERVANTES I GAVE REAL.
CRISTINA GARCIA MEDINA GARCIA I
WENT. NO AND NO PETRIE-NORRIS
PETRIE-NORRIS HI STONE STONE I
WICKS. AND A SEVEN BOOKS. SB
SIX SEVEN OKAY THE BILL HAS
SEVEN VOTES AND WE WILL LEAVE
THE CALL OPEN FOR ABSENT
MEMBERS THANK YOU MISTER
STRONG. I WILL NOW HAND THE
GAVEL OVER TO VICE CHAIR. THE
NEXT BILL THE FINAL ORDER IS AB
TEN EIGHTY NINE FILE ITEM
NUMBER TEN MISTER CHAIRMAN YOU
READY AT YOUR PLEASURE SIR.
THANK YOU MR VICE CHAIR I AM
PLEASED TO PRESENT TO YOU AB
TEN EIGHTY NINE WHICH WILL
UPDATE AND MODERNIZE THE CREDIT
SERVICES ACT OF NINETEEN EIGHTY
FOUR. TO EXPAND CONSUMER
PROTECTIONS WHEN CONTRACTING
WITH THE CREDIT SERVICE
ORGANIZATION. WHAT CALIFORNIA
HAS SOME OF THE STRONGEST
CONSUMER PROTECTIONS IN THE
NATION. FOR OTHER INDUSTRIES
CURRENT LAW DOES NOT REQUIRE
CSOS TO PROVIDE EVEN BASIC
INFORMATION. ABOUT THE SERVICES
THEY ILL RENDER OR HAVE
RENDERED HOW MUCH THEIR
SERVICES ARE LIKELY TO COST
WHEN THEY COMMITTEE AND
COMMUNICATE WITH THIRD PARTIES
ON BEHALF OF THE CONSUMER. OR A
TIMELINE FOR WHEN THE SERVICES
WILL BE COMPLETE THAT IS WHY AB
TWENTY IS NEEDED TO ENHANCE
CONSUMER PROTECTIONS BY
REQUIRING C. S. LOWS. TO TELL
CONSUMERS WHAT THEY INTENDED TO
PROVIDE ITEMIZED RECEIPTS AND
DISCLOSURES. DISCLOSED TO
CONSUMERS AND PROVIDE COPIES OF
ALL COMMUNICATION AND ONCE IN
THE COMMUNICATION ON BEHALF OF
THE CONSUMER TO A THIRD PARTY
REQUIRE CSOS TO DISCLOSE. THAT
THE COMMUNICATION ORIGINATED
FROM THE C. S. O. I DO HAVE TWO
WITNESSES. TODAY AND I WILL
HAVE THEM SELF INTRODUCE THANK
YOU. MISTER LESTER. THANK YOU.
BURGER WITH THE ASSOCIATION OF
COLLECTORS HERE IN SUPPORT OF
MR GRAYSON'S AB TEN EIGHTY NINE
I WOULD LIKE TO THANK MR
GRAYSON FOR OFFERING THIS BILL
AND HIS STAFF FOR ALL THE WORK
THEY PUT INTO IT- AB TEN EIGHTY
NINE IS INTENDED TO INCREASE
CONSUMER PROTECTIONS BY
PROVIDING GREATER TRANSPARENCY
FOR CONSUMERS DEALING WITH C.
R. ROSE CREDIT REPAIR OR CREDIT
REPAIR ORGANIZATIONS. BOB
PROVIDING CONSUMERS MORE
INFORMATION REGARDING THE
SERVICES THEY ARE GETTING AND
WHAT THEY'RE PAYING FOR WHEN
THEY US SIGN UP FOR C. R. O.
SERVICES- AS WELL AS PROVIDING
MORE EFFECTIVE STATE
GOVERNMENTAL OVERSIGHT. I SEE
OUR ROADS HAVE BEEN AN ONGOING
PROBLEM FOR CONSUMERS FOR
DECADES YOU ONLY HAVE TO READ
THE LEGISLATIVE DECLARATIONS IN
THE NINETEEN EIGHTY FOUR AFTER.
TO SEE THAT THESE PROBLEMS HAVE
BEEN ONGOING FOR DECADES. AS
THE ANALYSIS OF THE BILL POINTS
OUT FEDERAL REGULATORS EVEN
BEFORE THE KOBE PANDEMIC PUT
OUT A WARNING TO CONSUMERS
REGARDING USING THESE ENTITIES.
I WITH THE CODE PANDEMIC
ECONOMIC DISLOCATION AND
UNEMPLOYMENT CONSUMERS
PARTICULARLY LOW INCOME AND
WORKING GOT CALIFORNIANS ARE
MORE VULNERABLE TO THE
MARKETING OF THESE CREDIT FIX
IT SCHEMES. AND ENTITIES AB TEN
EIGHTY NINE IS AN IMPORTANT
PIECE OF LEGISLATION TO PROTECT
LOW INCOME AND WORKING
CALIFORNIANS FROM DECEPTIVE
PRACTICES. LAST YEAR NEARLY
IDENTICAL BILL AB SIX NINE NINE
BY MR GRAYSON PASSES COMMITTEE
UNANIMOUSLY THE SENATE ME
ASSEMBLY SAID ASSEMBLY FLOOR
UNANIMOUSLY BUT WAS NEVER HEARD
IN SENATE JUDICIARY COMMITTEE
DUE TO COAL WOULD SHORTEN.
HEARING SCHEDULES WE URGE YOUR
SUPPORT FOR THIS BILL THIS YEAR
AND HOPEFULLY CAN GET IT
THROUGH- THE CALL WILL BE A-
LEGISLATIVE. PROCESS- THANK YOU.
THANK YOU FOR OUR SECOND
WITNESS IN SUPPORT WILL ALSO BE
TESTIFYING OVER THE PHONE-
MODERATOR PLEASE CONNECT AS
WITH MS SYDNEY JACQUELINE ON
BEHALF OF THE CALIFORNIA.
ASSOCIATION OF COLLECTORS.
THANK YOU AND GOOD AFTERNOON MY
NAME IS CINDY AUCKLAND I'M
CURRENTLY SERVING AS A
PRESIDENT FOR THE CALIFORNIA
ASSOCIATION OF COLLECTORS. AND
I'M A SECOND GENERATION
COLLECTION AGENCY OWNER HERE IN
SACRAMENTO. AB TEN EIGHTY NINE
IT'S FUNDED BY THE CALIFORNIA
ASSOCIATION OF COLLECTORS AS A
DIRECT RESULT OF CONSUMER
PROTECTION ISSUES THAT HAVE
BEEN IDENTIFIED BY OUR MEMBERS
AND ON BEHALF OF COLLECTION
AGENCIES NATIONWIDE.
CONSISTENTLY OUR MEMBERS HAVE
REPORTED THAT CONSUMERS DID NOT
ACTUALLY DISPUTE THE AMOUNT
THAT SIGN. AND THEY'VE
INDICATED THEY'RE SIGNATURE IN
A LETTER SENT BY THE CREDIT
SERVICE ORGANIZATION IS NOT
THEIR SIGNATURE. CONSUMERS HAVE
EXPRESSED FRUSTRATION AND ANGER
AT THEIR CREDIT SCORE DID NOT
INCREASE AS THE CSO HAD
REPRESENTED. THEY HAVE PAID FOR
SERVICES TO AT THE END SO WITH
NO RESULTS AND ARE UNAWARE THAT
LETTER TO DISPUTE ARE BEING
SPENT ON PAID ACCOUNT. AND IT
MULTIPLE LETTERS ARE MAILED AT
THEIR COSTS FOR ACCOUNTS
PREVIOUSLY VALIDATED. IN ORDER
TO ENHANCE CONSUMER PROTECTIONS
WHEN CONTRACTING WITH THE SCSO
RUPRECHT ONLY ASK. FOR YOUR
SUPPORT AND YOUR AYE VOTE ON AB
TEN EIGHTY NINE. THIS BILL IS
CRITICALLY NEEDED TO UPDATE THE
CREDIT SERVICES ACT OF NINETEEN
EIGHTY FOUR THAT WILL
ULTIMATELY INCREASE
TRANSPARENCY AND PROVIDE
ADDITIONAL DISCLOSURES TO
CONSUMERS FOR THE SERVICES
PROVIDED BY THE DSS. THANK YOU
FOR YOUR TIME. THANK YOU FOR
YOUR TESTIMONY- MISTER
MODERATOR PLEASE CONNECT US
WITH THOSE IN OPPOSITION- OVER
THE PHONE THE FIRST ONE WILL BE
MISTER ERIC CAMERON ON BEHALF
OF LEXINGTON LAW. THANK YOU MR
VICE CHAIR. MISTER CHAIR AND-
MEMBERS OF THE COMMITTEE MY
NAME IS OUR CAMERA- TODAY ON
BEHALF OF LEXINGTON LAW IN
OPPOSITION TO A. B. TEN EIGHTY
NINE. LET ME START BY THINKING
THE OPERATIVE STAFF FOR SOME
VERY PRODUCTIVE CONVERSATIONS
THAT WE'VE HAD SO FAR- AND OUR
OPPORTUNITIES TO EXPRESS
CONCERNS- WE APPRECIATE HIS
GOAL WITH THIS BILL BUT
UNFORTUNATELY WE HAVE
SIGNIFICANT. CONCERNS ABOUT THE
IMPACT THIS BILL WOULD HAVE ON
OUR ABILITY. TO ASSIST
CONSUMERS AGAINST A LOT- DEBT
COLLECTORS TO SPONSOR THIS BILL-
I. BEGIN BY POINTING OUT THAT
THERE IS SOME IRONY THAT DEBT
COLLECTORS WHO ARE FREQUENTLY
YOU'RE SUING CONSUMERS ARE NOW
ATTEMPTING TO STEP INTO THE
POSITION OF CONSUMER ADVOCATES
TO PROTECT CONSUMERS- I ALSO
NOTE. THE COMMENTS RELATIVE TO
CALL THAT IN THE PROTECTIONS
THAT CONSUMERS NEED- MANY
STATES ARE MORE FOCUSED ON- BE
COLLECTION ACTIVITIES THAT GO
AFTER STIMULUS MONEY- THEN
AFTER- CONSUMER REPORTING
AGENCIES- THIS IS- NOT AN AREA
WHERE WE'VE SEEN THAT- CONSUMER
FINANCE HAVING AN OUTCRY FOR
CHANGE- WE DON'T BELIEVE
THERE'S AN OVERWHELMING IN.
ISSUE OF CONSUMER ABUSE AND WE
DON'T LAST YEAR WITH THE SENATE
BILL START WITH ASSEMBLY BILL.
SIX NINETY NINE THIRTY SECONDS
CONSUMER GROUPS. THEN CAME. IN
SUPPORT OF THE- WE REMIND YOU
CAN THAT CONSUMERS TO US WHEN
THEY NEED HELP- OUR INTERESTS
ARE ALIGNED WITH THOSE
CONSUMERS. AND UNFORTUNATELY
THANK YOU THANK YOU SO MUCH I
REALLY REALLY APPRECIATE YOUR
TESTIMONY. SECOND WITNESS IN
OPPOSITION WILL BE. RUNNING
DELAY ME ON BEHALF OF NIELSEN
PERSIMMON. THANK YOU MISTER
CHAIR COMMITTEE MEMBERS MANY
MUCH MORE ABOUT THE ARMY FROM
NIELSEN MARK BURKE SHARE ON
BEHALF OF THE CREDIT REPAIR
ORGANIZATIONS PROGRESSION.
HELLO FROM HOME YOU JUST HEARD
I LIKE TO THINK CHAIR GRAYSON
AND ITS STAFF FOR ALL THEIR
TIME AS WELL BEING BACK LAST
YEAR. UNFORTUNATELY MANY OF THE
CONCERNS WE HAD WITH RESPECT TO
LAST YOUR BILL HAVE CARRIED
OVER INTO EIGHTY TEN EIGHTY
NINE ONLY NOT THEIR PART
BECAUSE THE BILL TODAY. WE'RE
NOT GONNA GO INTO THE BILL'S
LICENSING PROVISIONS WE
UNDERSTAND THE DOCTOR PLANS TO
DELETE THEM. WE SIMPLY THINK
THE AUTHOR TOLD THE COMMITTEE
STAFF AND WILL FINALLY REMOVE
OUR OPPOSITION TO THE ACTION
ONCE THE BILL OF THE MIND THAT.
ARE REMAINING OPPOSITION REALLY
BOILS DOWN TO ONE OVERARCHING
CONCERN BARBARITY TO CONTINUE
TO ASSIST OUR CONSUMER THAT'S
ACTIVELY MOVING FORWARD WE DO
NOT OBJECT TO PROTECTIONS AND
OVERSIGHT PARTICULARLY BECAUSE
WE AGREE THAT PROVIDING CLEAR
DUE TO THE CONSUMER ABOUT THE
SERVICES THEY ARE GETTING AND
HOW THEY ARE GETTING THAT IS
IMPORTANT. BUT WHILE WE DON'T
BELIEVE IT HAS BEEN CAN AUTHOR
EIGHTY TEN EIGHTY NINE WITH
FUNDAMENTALLY OUR ROAD- BILITY
TESTERS CONSUMERS AND ONE
CRITICAL WAY THAT IS BY
DIFFERENTIATING IDENTITY OF THE
CSO COMBAT OF THE CONSUMER.
SPECIFICALLY THE BILL REQUIRES
DIRECTORS TO DESCRIBE IDENTITY
ON COMMUNICATIONS PROTECT FROM
EMITTING A COMMUNICATION AND I
CALLED INCRIMINATING AND
CONSUMER AND OTHER ECLIPSE ON A
CERTAIN TAKEN ACTION FROM THE
NO CONSUMERS REPRESENTED. WE
TAKE GREAT EXCEPTION WITH EVEN
THE SUGGESTION BETTER CREDIT
REPAIR ORGANIZATION
IMPERSONATES THE CLIENT THEY
REPRESENTED. BOTH A LOADED TERM
LEADING ONLY BELIEVE IT SHOULD.
BE REMOVED FROM THE BILL.
FEDERAL FAIR CREDIT REPORTING
ACT RIGHT FURTHER IN DETAIL IN
OUR WATER LITERALLY TO TOP OF
THAT THIS IS THE BALL GAME IT'S
A GIFT TO THE AND WHAT HER THE
CONSUMER I RESPECTFULLY ASK YOU
TO BUY NO ON BEHIND THE NINE AT
PRINCE BUT WE THINK THE AUTHOR
LOOKED TO CONTINUING. THAT WE
THINK COMMITTEE. THANK YOU VERY
FOR YOUR TESTIMONY MISTER LAMB.
WE WILL NOW BE MOVE ON TO PAY
COMMON. OUR THERE ANY WITNESSES
AND- IN THE BACK THE- FOR. OR
IN THE GALLERY TO TAKE YOUR NAY
AFFILIATE AND- NONE ARE THERE
WOULD ENOUGH. ABOUT THE CHAMBER.
THE GALLERY. SEEING NINE ONE
ARE THERE ANY IS A ON THE PHONE
OR IN THE- THANK YOU IF YOU
LIKE TO OF ON THE PHONE FOR BI
EIGHTEEN. PRESS ONE THEN. TWO
FOLLOWED BY ZERO ONE GO TO LINE.
ONE FORTY TWO ONE FOUR TWO.
GOOD AFTERNOON MR CHIU MEMBERS
STOP WILL HERE FROM WILL TO SEE
ON BEHALF OF U. S. U. B. IN
STRONG OF THE BILL THANK YOU.
JOURNAL FOR THE LINE THANK YOU
FOR SUPPORT. THANK YOU MR
MODERATOR ARE THERE ANYONE IS
IN OPPOSITION- ON THE PHONE OR
IN THE QUEUE. THANK YOU TO
EXPRESS OPPOSITION TO AB TEN
NINETY NINE MIN PRESS ONE AND
THEN ZERO. AGAIN THAT
COMMANDERS ONE FOLLOWED BY ZERO.
INTERNAL LINES INTO AT THIS
TIME. THANK YOU- TO THE
COMMITTEE ARE THERE ANY
QUESTIONS COMMENTS. MISTER
WOULD YOU LIKE TO MAKE A
CLOSING STATEMENT. THANK YOU
BYE FOR CHEN I WOULD LIKE TO
ACKNOWLEDGE THAT I AM AWARE OF
THE OPPOSITION'S CONCERNS MY
STAFF FROM THE OPPOSITION HAVE
HAD PRODUCTIVE CONVERSATIONS
AND I AM CONFIDENT THAT WE WILL
BE ABLE TO REACH AN AGREEMENT
LASTLY I DO WANT TO AFFIRM THAT
WE WILL WE HAVE COMMITTED. TO
TAKING OUT THE LICENSING
PROVISIONS THAT ARE CURRENTLY
IN THE BILL THANK YOU FOR YOUR
CONSIDERATION OF THIS MEASURE I
RESPECTFULLY ASK FOR AN AYE
VOTE. I UNDERSTAND THAT THERE
IS A MOTION SECOND ALREADY THE
MOTION BEFORE US IS TO PASS THE
SEMI PRIVACY CONSUMER
PROTECTION COMMITTEE. SECRETARY
PLEASE CALL THE ROLL. GRAYSON
HI GRAYSON AYE CHAN AYE CHAN
AYE DEREK IN AMERICA CAN I
BURKE. BURKE I CHOI. CERVANTES
CERVANTES HI GABRIEL GABELEIN
CRISTINA GARCIA STEPHEN GARCIA
I WENT. PETRIE-NORRIS
PETRIE-NORRIS HI STONE. STONE I
WICKS WICKS HI HIS TEMPLES. IT
DOESN'T BUILD BOATS THE BILL
PASSES AND WILL LEAVE THE CALL
OPEN FOR ABSENT MEMBERS THANK
YOU MISTER CHAIR. THANK YOU AND.
OKAY WE'RE GONNA GO THROUGH THE
LIST OF BILLS THAT ARE ON CALL
AND- GIVE MEMBERS AN
OPPORTUNITY TO ADD ON. SO WE
COULD START WITH CONSENT. YEAH
A DIFFERENT A LOT OF OPTIONS.
HI THERE OKAY SO WE DID THE WE
DID VOTE ON RULES SO SECRETARY
WILL YOU DO ROLL CALL ON THE
RULES OF COMMITTEE. ON THE
COMMITTEE ROLES ADOPTION THERE
CAN. THERE CAN I BURKE. BURKE I
CERVANTES. CERVANTES HI GABRIEL.
I. THIS WILL. TWELVE VOTES AND
RULES ARE ADOPTED- FOR THE
COMMITTEE. NEXT CONSENT. THE
SECRETARY WILL CALL ROLE THERE
CAN THERE CAN I BURKE. I
CERVANTES. CERVANTES CARO APRIL
NINTH AT TWELVE. AND CONSENT
CALENDAR WITH TWELVE VOTES HAS
BEEN ADOPTED AND WE WILL NOW GO
TO ITEM NUMBER. ONE FOURTEEN
ZERO FIVE SECRETARY WILL YOU
CALL ROLE. BURKE BURKE I CHOI.
SERVICENOW CERVANTES CERVANTES
HI GABRIEL. THAT'S AB FORTINO
FIVE. IT APRIL I. SINCE NINE
BILLS. THIS BILL IS DUE PASSED
AMENDED TO ASSEMBLY JUDICIARY
WITH NINE VOTES THE BILL IS OUT.
I REMEMBER. TO AB EIGHT SIX
NINE. BURKE BURKE I CERVANTES
CERVANTES HI GABRIEL. GABRIEL I
WICKS WICKS I MISS TWELVE VOTES.
THIS BILL TO PASS THE ASSEMBLY
APPROPRIATIONS COMMITTEE IS OUT
WITH. EIGHT TWELVE TWELVE VOTES.
FILE ITEM NUMBER SEVEN ASK YOUR
AB FORTY FOUR FACTORY RECALL
ROLE. CARO I. WICKS SIX HI.
THAT IS NINE VOTE. THE BILL HAS
NINE VOTES AND IS- DO PASS OUT
TO ASSEMBLY JUDICIARY COMMITTEE.
ADAM NUMBER TEN AB TEN EIGHTY
NINE. CHOI WHEN. S. TEN VOTE.
THIS BILL IS DUE PASSED THE
ASSEMBLY PRIVACY AND CONSUMER
PROTECTION COMMITTEE OUT WITH
TEN VOTES. IS THAT AVAILABLE.
ALL RIGHT. I DO WANT TO EXTEND
MY GRATITUDE THE SPEAKER'S
OFFICE STAFF THE RULES
COMMITTEE STAFF THE LEGISLATIVE
DATA CENTER AND THE MODERATOR
AND ALL WHO ANSWERED THIS
HEARING COULD TAKE PLACE THE
ASSEMBLY BANKING AND FINANCE
COMMITTEE IS ADJOURNED.