THE WE HAVE A QUORUM FAMILY CALL
THE ROLL [inaudible]
FURK HERE [inaudible]
BRO ISSUE.
CHIU HERE GRAY.
GRAY HERE MAYES MELINDA'S MULLIN.
PETRIE NORRIS QUIRK HERE QUIRK
HERE REVERSE.
REVERSE HERE TING.
TING HERE WE HAVE A QUIRK
[inaudible]
MR SALAS.
YOU'RE FREE TO OPEN ALL RIGHT.
THANK YOU MADAM CHAIR --
COMMITTEE MEMBERS I'M HERE TO
PRESENT ASSEMBLY BILL.
TWELVE FIFTY SEVEN ASSEMBLY BILL
TWELVE FIFTY SEVEN WILL EXAMPLE
ADAPTIVE AUTOMOTIVE EQUIPMENT
FROM CELLS TAX ONE IS SOLD.
TO DISABLED VETERANS IN
CALIFORNIA PHYSICALLY DISABLED
VETERANS DEPEND ON THIS
EQUIPMENT WHICH HELPS THEM
SAFELY ENTER EXIT OR OPERATE A
MOTOR VEHICLE.
CALIFORNIA IS HOME TO NEARLY
ALMOST TWO MILLION VETERANS
WHICH IS MORE THAN ANY OTHER
STATE.
ACCORDING TO THE US DEPARTMENT
OF VETERANS AFFAIRS ALMOST THREE
HUNDRED AND NINETY ONE THOUSAND
VETERANS RECEIVE -- FEDERAL
DISABILITY COMPENSATION IN.
TWENTY SEVENTEEN THOUSANDS OF
THESE VETERANS SUFFER FROM
PHYSICAL DISABILITIES THAT CAN
MAKE IT EXTREMELY DIFFICULT TO
TRANSPORT THEMSELVES.
ADAPTIVE AUTOMOTIVE EQUIPMENT
MAKES IT POSSIBLE FOR DISABLED
VETERANS TO COMPLETE EVERYDAY
TASKS SUCH AS DRIVING TO AND
FROM WORK.
BUYING GROCERIES ARE ATTENDING
MEDICAL APPOINTMENTS -- THIS
BILL HAS NO OPPOSITION AND WITH
THE PRE SHEET YOU LOOKING
FAVORABLY UPON THIS LEGISLATION
AND HAVE A WITNESSES IN SUPPORT
WITNESSES IN COURT.
AFTERNOON CHAIR AND MEMBERS MY
NAME IS FOR CAL OUT I AM WITH
REPORTER MEANT RELATIONS.
WE'RE REFER SEND THE AMERICAN GI
FORUM OF CALIFORNIA AMERICAN
LEGION DEPARTMENT OF CALIFORNIA
I'M VETS DEPARTMENT OF
CALIFORNIA.
CALIFORNIA ASSOCIATION OF COUNTY
VETERANS SERVICE OFFICERS
CALIFORNIA STATE COMMANDERS
VETERANS COUNCIL AND THE BEAT
NAM VETERANS OF AMERICA
CALIFORNIA STATE COUNCIL THEY
ARE ALL IN SUPPORT OF AB.
TWELVE FIFTY SEVEN MANY NOT MANY
OF THE VETERANS THAT WILL NEED
TO USE ADAPTIVE EQUIPMENT ARE A
100% DISABLED.
AND LIVE ON A FIXED INCOME OF
THREE THOUSAND FIFTY SEVEN A
MONTH.
THESE VETERANS HAVE SACRIFICED
SO MUCH FOR THE FREEDOMS THAT WE
ALL ENJOY.
WE SHALL STRIVE TO IMPROVE THE
LIVES OF OR VETERANS AT ANY COST.
WE THANK THE AUTHOR FOR HIS
LEADERSHIP ON THIS IMPORTANT
ISSUE FACING OR DISABLED
VETERANS.
THANK YOU.
FREDERICK OR METAL ON STATE
COMMANDER FOR THE AMERICAN GI
FORUM VIETNAM VETERAN.
I'M ALSO THE VICE CHAIR OF THE
COMMANDERS COUNCIL AND WE ARE IN
SUPPORT OF THIS -- AND BILL.
THANK YOU EDITION AWARENESS IS
IN SUPPORT.
WITNESSES IN OPPOSITION.
SEEING AND HEARING NINE COMMENTS
AND QUESTIONS FROM THE COMMITTEE
DOT QUIRK.
CHAU ARM.
IN THE ANALYSIS UNDER G..
A CHEESE ME UNDER HALF THEY
POINT OUT THAT YOUR PROGRAM IS
CONSIDERABLY.
OUR CAN BE INTERPRETED AS BEING
BROADER.
THEN THE VETERANS AND IN
PARTICULAR ARE THAT THE
DISABILITY -- NOT BE SERVICE
RELATED WHEREAS -- I WOULD FEEL
MORE COMFORTABLE WITH THE BILL
IF IT -- FOR GAVE THE SALES TAX
ON ITEMS PROVIDED SPECIFICALLY
BY THE VETERANS ADMINISTRATION.
RATHER THAN -- SHAPE BUT
PRIVATELY BECAUSE IT'S NOT --
YOU KNOW ADDITIONAL.
EQUIPMENT BROAD PRIVATELY THAT'S
OUTSIDE OF THE REST OF THAT
PROGRAM SO THAT'S A CONCERN I
HAVE WHICH IS.
GET IN THE ANALYSIS THANK YOU.
FIVE I APPRECIATE THAT THROUGH
THE CHAIR IF I MAY UM YEAH I
APPRECIATE THAT ASSEMBLY MEMBER
QUIRK THAT IS SOMETHING THAT WE
WERE LOOKING AT AND WE WERE
ACTUALLY IF THIS BILL PASSED OUT
OF THIS COMMITTEE LOOKING AT
DOING SOMETHING VERY SIMILAR TO
WHAT YOU'RE SAYING.
IN THE APPROPRIATIONS COMMITTEE
BUT IF THERE'S A AMPLE
OPPORTUNITY I WOULDN'T MIND
DOING IT IN THIS COMMITTEE AS
WELL [inaudible]
OKAY.
ANY OTHER COMMENTS OR QUESTIONS
FROM THE COMMITTEE.
SAYING THAT WE DO HAVE OUR
PERTAIN TO DO IT HERE AS WELL AS
IT DOESN'T CURRENTLY HAVE A
SENSE THAT IT DOESN'T CURRENTLY
CONTAIN AS CITY EVEN OF A
COMPLIANCE FOR REVENUE TAX CODE.
SECTION FORTY ONE SO WE WOULD
HAVE TO FIX THAT AS WELL SO --
WITHOUT WHICH LIKE TO CLOSE --
JUST RESPECTFULLY ASK FOR AN AYE
VOTE AND LOOK FORWARD TO THE
OPPORTUNITIES -- TO HELP MAKE IT
BETTER WHAT WILL WORK WITH YOU
THANKS.
THANK YOU THANK YOU.
FILE ITEM NUMBER.
ONE ASSEMBLY MEMBER BONTA WOULD
YOU LIKE TO OPEN.
THANK YOU MADAM CHAIR THANK
COLLEAGUES THANK YOU STAFF FOR
THE OPPORTUNITY TO PRESENT AB
TWO EIGHTY SIX WHICH I AM PROUD
TO BE WORKING ON IN A BIPARTISAN
FASHION WITH MY COLLEAGUE.
ASSEMBLY MEMBER TOM LACKEY WHOSE
ARE HERE TO TESTIFY AS WELL AND
WORKING ON THIS AS WELL WITH
JOINT AUTHORS.
ASSEMBLYMEMBERS COOLEY AND JONES
SAWYER I WANT TO START BY SAYING
THAT WE WILL BE AMENDING THE
BILL TO COMPLY WITH THE
REQUIREMENTS OF REVENUE AND
TAXATION CODE SECTION.
FORTY ONE WHICH OUTLINES
SPECIFIC GOALS PURPOSES AND
OBJECTIVES THAT THIS BILL WILL
ACHIEVE ALONG WITH DETAILED
PERFORMANCE INDICATORS FOR THE
LEGISLATURE TO USE.
WHEN MEASURING WHETHER OR NOT
THE BILL IS MEETING THOSE GOALS
PURPOSES AND OBJECTIVES?
WE THINK THIS IS A REALLY
IMPORTANT BILL OUT FOR TWO
REASONS ONE IT WILL.
HELP WITH THE MIGRATION OF
CANNABIS BUSINESSES AND
CONSUMERS FROM THE ILLICIT
MARKET TO THE REGULATED MARKET
PLACE. TO IT WILL INCREASE TACK
AT TAX REVENUE OVERALL WHICH IS
ESTIMATED TO BE -- AT THAT LAST
ESTIMATES A HUNDRED MILLION
DOLLARS SHORT OF PROJECTIONS HOW
WILL IT DO THIS THIS IS A
NASCENT BUSINESS THAT BIG AB
INDUSTRY THE CANNABIS INDUSTRY
IT'S A CHANGE.
OF LAW THAT WE'VE HAD IN A VERY
SHORT PERIOD OF TIME WHEN WE IN
TWENTY FIFTEEN PASSED MC RSA
FOLLOWED BY PROP -- SIXTY FOUR
PASSED BY THE WILL OF THE VOTERS
AND NOW WE HAVE A REGULATED
MARKET PLACE THAT PROTECTS THE
PUBLIC IN CHILDREN THE
ENVIRONMENT ENSURE SAFE PRODUCTS.
AND I AM HELP MAKE SURE THAT
THINGS ARE DONE IN A COMPLIANT.
WAY AND RIGHT NOW THERE ARE
BARRIERS FOR FOLKS TO THE LISTEN
MARKET TO ENTER THAT THAT
REGULATED MARKET THE ONE THE
BIGGEST ONES IS THAT THE HIGH
COST OF DOING BUSINESS AND IT BY
TEMPORARY LOW TEMPORARILY
LOWERING THE TAXES.
A SUSPENSION OF THE CULTIVATION
TAX FOR THREE YEARS AND IT
LOWERING OF THE EXCISE TAX FOR
THREE YEARS FROM 50% 211%.
REALLY ENABLE ENCOURAGE AND SENT
OUR INDUSTRY TO COME INTO THE
REGULATED MARKET PLACE WHICH IS
WHAT WE WANT THEM TO BE -- NOW
YOU MIGHTASK BY LOWERING THE
TAXES WHAT WILL THE IMPACT BE ON
OUR TAX REVENUE WE BELIEVE THAT
IT WILL RAISE TAX REVENUE HOW.
IT SOMEWHAT COUNTERINTUITIVE BUT
IT WORKS LIKE THIS BY LOWERING
THE TAX RATE.
OUT MORE FOLKS ARE ABLE TO PAY
THE TAX AND WHEN YOU HAVE MORE
PARTICIPANTS PAYING A TAX EVEN
IF IT'S LOWER YOU HAVE A BIGGER
TAX BASE AN OVERALL HIGHER TAX
REVENUE.
WE'VE SEEN THAT HAPPEN IN OTHER
STATES IN STATES LIKE WASHINGTON --
AND SO WE THINK THAT -- THE
CONCERNS RAISED BY THAT -- THE
HUNDRED MILLION DOLLARS BLOW
PROJECTIONS OUT CAN BE ADDRESSED
BY THIS BILL SO WE GET A TWO FOR
IN A SENSE WE GET MORE CANNABIS
INDUSTRY MEMBERS COMING INTO THE
REGULAR MARKET PLACE AND WE GET
GREATER REVENUE THAT COULD BE
SPENT AND ALL THE GOOD THINGS.
AT DECIMATED OUTLINED IN
PROPOSITION SIXTY FOUR SO WE
THINK THIS IS THE AS SENSIBLE
BILL THAT WILL CREATE.
A GREAT BENEFIT FOR OUR STATE.
AND I WANT TO GIVE ASSEMBLY
MEMBER TOM LACKEY AN OPPORTUNITY
TO SPEAK BEFORE WE GO TO OUR
WITNESS JARED KILO PRESIDENT.
OF THE UNITED CANNABIS BUSINESS
ASSOCIATION.
ASSEMBLY MEMBER LACKEY.
THANK YOU WELL LOT OF WHAT I
HAVE TO SAY IS -- IN LINE WITH
WHAT WAS YOUR SHARED.
AND WITH.
ALL DUE RESPECT FOR YOUR TIME
I'M NOT GOING TO REPEAT
EVERYTHING.
BUT ESSENTIALLY -- WE HAVE A
LIST OF MARKET THAT'S FOR A
ROBUST HERE.
AND QUITE FRANKLY THEY HAVE BEEN
ENGAGED IN BEHAVIOR.
AND MARKETING SENSE -- THE
COMPASSIONATE.
ACT.
NINETEEN NINETY SIX AND SO
THEY'RE VERY VERY -- SKILLED AND
EXPERIENCED IN KNOWING HOW TO
GET THE PRODUCT.
INTO THE HANDS OF THE CONSUMER
AND NOW WE HAVE -- PROP SIXTY
FOUR WHICH WAS -- I THINK.
SOMETHING THAT OF COURSE OUR
PEOPLE WANTED AND SO WE NEED TO
DO IT RESPONSIBLY AND
UNFORTUNATELY THE DEMAND HAS NOT
DIMINISHED BUT WHAT HAS.
IS THE ABILITY TO COMPETE WITH
THE ILLICIT MARKET WITH ALL
THESE REGULATORY.
COSTS AND EXPENSES AND A
CIRCUMSTANCES THAT OF COURSE THE
ILLICIT MARKET HAS NOT ENOUGH.
AND SO WE'RE TRYING TO JUST
EQUALIZE THE PLAYING FIELD AND
ALL UNDERSTAND AND AND A MORE
SIMPLER FORM.
AND I BELIEVE THOSE WHO HAVE
INVESTED HURT HEAVILY DESERVE TO
BE SUPPORTED BY THIS TAX
REDUCTION THIS REASONABLE
APPROACH.
SO THEY CAN COMPETE FAIRLY --
THEY NEED TO BE REWARDED IN
RIGHT NOW THEY ARE NOT AND SO WE
JUST WANTED. TO FOLLOW THE THE
FOOTSTEPS OF THE STATE OF
WASHINGTON -- THERE AN EXAMPLE
ONCE THEY REDUCE THEIR RATES AND
SIMPLIFY THEIR TAX.
SYSTEM THEY INCREASED THEIR
ABILITY -- TO TO GAIN.
ACTUAL MONEY AND AND UP WE JUST
NEED TO FOLLOW THAT SIMPLE
PATHWAY.
THANK YOU WITNESSES SUPPORT --
THANK YOU MADAM CHAIR AND
COMMITTEE MEMBERS MY NAME IS
CHAIRED KILO I'M THE PRESIDENT
OF THE UNITED CAN WITH BUSINESS
ASSOCIATION.
I'M ALSO A RETAIL DISPENSARY
OWNER IN THE CITY OF LOS ANGELES
AND IN NAPA -- I WANT TO COME
HERE AND SUPPORT TO EIGHTY SIX
IN THE REDUCTION OF FROM A
15211% AND MOSTLY IT'S BECAUSE
RIGHT NOW THE CITY OF LOS
ANGELES WE HAVE ABOUT A 42% TAX
IF YOU TAKE ALL THE TAXES FROM
SALES TAX GROSS RECEIPTS TAX
EXCISE TAX.
AND CULTIVATION TAX WE ARE WE
ARE DEFINITELY AT A DISADVANTAGE
WHEN IT COMES TO A COMPETITIVE
PRICE -- AND A LOT OF THE LEGAL
BUSINESSES IN THE CITY OF LOS
ANGELES ARE LAYING OFF EMPLOYEES
BECAUSE THEY CANNOT COMPETE WITH
AN ILLICIT MARKET -- WE'RE
SEEING ABOUT A 30% REDUCTION IN
EMPLOYMENT -- AND A LOT OF THOSE
EMPLOYEES ARE GOING TO THE
ILLICIT MARKET WHERE THEY CAN --
COLLECT UNDER THE TABLE -- LABOR
COSTS AND DON'T PAY INTO THE
SYSTEM AT ALL -- RIGHT NOW
YOU'RE LOOKING AT A SYSTEM THAT
HAS ACOSTA BANKING COMPLIANCE
TAXES REBUILDING EXISTING
INFRASTRUCTURE ADAPTION ADOPTION
TO THE EVER CHANGING LANDSCAPE
OF COMPLIANCE.
ALL OF THESE ADDED COST OF DOING
BUSINESS ARE NOT COSTS OF THE
ILLEGAL -- DISPENSARY OWNERS OR
ILLEGAL BUSINESS OPERATORS HAVE
TO PAY -- ESTIMATES RIGHT NOW
ABOUT 80% OF THE COMMERCIAL
CANNABIS THAT IS CURRENTLY BEING
SOLD IS BEING SOLD THROUGH THE
ILLICIT MARKET.
SO FOR LOOKING AT THE VOLUME
THAT THIS TAX CAN CAPTURE YOU'RE
LOOKING AT AN 80% MARKET SHARE
AND EVEN IF WE CAPTURE TEN
FIFTEEN OR 20% OF THAT.
THE TAX REVENUE IS IS IS VERY
LARGE IN COMPARISON -- WE NEED
TO GIVE THESE REGULATED
BUSINESSES SOME FIGHTING CHANCE
TO COMPETE AGAINST THE ILLICIT
MARKET -- AND WITHOUT THAT WE
ARE CURRENTLY LOOKING AT A
REDUCTION OF THE OVERALL USAGE
OF REGULATED CANNABIS CURRENTLY
IN CALIFORNIA SO I WOULD ALSO
LIKE TO SAY THAT -- IF WE REALLY
CAN'T GET THE VOLUME OF SALES UP
INSIDE OF THE REGULATED INDUSTRY --
THE AMOUNT OF TAX DOLLARS
RECEIVED CAN MAYBE HIT OUR
HUNDRED MILLION DOLLAR -- TAX
GAP THAT WE CURRENTLY HAVE SO
I'M HOPING THAT YOU SUPPORT --
AB TWO EIGHTY SIX JUST SAYS --
CAM WITH RETAILERS STILL.
THANK YOU WITH THIS ADDITIONAL
INNOCENCE PORT NAME AN
ORGANIZATION.
NEWMAN MADAM CHAIRS AND MEMBERS --
LEAGUE BYNUM YOU W. ASKED ME
LOCAL DâN THIRTY AND FULL
SUPPORT THANK YOU.
GOOD AFTERNOON MADAM TURN
MEMBERS KAREN LAYING ON THE FOR
THE CALIFORNIA ASSOCIATION OF
COUNTY TREASURES AND TAX
COLLECTORS ALSO IN SUPPORT FOR
THE REASONS STATED THAT YOU.
MADAM CHAIR MEMBERS ANY FRANK ON
BEHALF OF THE CALIFORNIA
CANNABIS INDUSTRY ASSOCIATION IN
STRONG SUPPORT THANK YOU.
AMY JENKINS ON BEHALF OF THE
INTERNATIONAL CANNABIS FARMERS
ASSOCIATION CANNOT CRAFTED TEAR
TECH CORPORATION AND STRONG
SUPPORT THANK YOU.
MEXICO -- SOME HAVE A FLOW CON
IN SUPPORT.
ENTERING GRABS DEAN FROM NOR CAL
CANNABIS WE ARE A RETAILER
CULTIVATOR MANUFACTURER AND
DISTRIBUTOR AND WE STRONGLY
SUPPORT.
HI CAITLYN O'NEILL WITH EASE IN
STRONG SUPPORT OF THE BILL.
EVAN QUARTER ON BEHALF A
CONTINUUM IN SUPPORT.
MADAM CHAIR MEMBERS MATT BROUGHT
WITH THE TEAMSTERS IN SUPPORT.
GOOD AFTERNOON BLACK SHEPHERD ON
BEHALF OF THE CAL ASIAN CHAMBER
OF COMMERCE IN SUPPORT.
WITNESSES IN OPPOSITION.
SEEING NINE COMMENTS AND
QUESTIONS FROM THE COMMITTEE
START WORK.
SO I AM IN STRONG SUPPORT AM.
ONE OF THE OUR COMMENTS IN THE
ANALYSIS WAS THAT WE THAT TO IN
ADDITION TO THE HIGH TAXES.
BOB AND BY THE WAY A LOT OF THEM
ARE JUST FROM LOCAL AND I THINK
THE LOCALS OUGHT TO BE REDUCING
THEM AS WELL -- BUT THAT A LOT
OF THE PROBLEM IS JUST THE
PROCEDURES AND CERTAINLY ADD
SEVERAL BILLS LAST YEAR TO
ADDRESS THAT I'VE GOT SEVERAL
MORE THIS YEAR THERE OTHERS WITH
SIMILAR BELLS -- IT IS IMPORTANT
TO ADDRESS THE ISSUE OF JUST THE
DIFFICULTY OF THE SYSTEM MCGUIRE
HAS A BILL THAT'S GOING TO ALLOW
MORE TEMPORARY PERMITS BECAUSE
THE AGENCY IS REALLY BEHIND AND
HAVING PERMANENT.
PERMITS SO -- WE ARE ADDRESSING
THAT ISSUE [inaudible]
THANKS.
MY SERVER THANK YOU MADAM CHAIR.
WELL TO SAY SOMETHING THAT'S NOT
OFTEN SAID IN SACRAMENTO WE GET
TO VOTE FOR TAX CUTS -- I
SUPPORTED THIS LAST TIME BUT I
WOULD JUST.
REMIND PEOPLE THAT THE WITNESS
HERE ARE LISTED A LAUNDRY LIST
OF BURDENS FOR THE CANNABIS-INDUSTRY BUT YOU CAN INSERT ANY
OTHER CALIFORNIA BUSINESS.
FACING HIGH TAXES REGULATORY
ENVIRONMENT -- SO THIS ISN'T A
ONE INDUSTRY SAYING WE SHOULD
LOOK AT REFORMING OUR TAXES FOR
ALL CALIFORNIA BUSINESS BUT I'LL
BE SUPPORTING THE BILL WHEN IT
COMES UP FOR A VOTE.
I'M ANSWER QUESTIONS FROM THE
COMMITTEE.
SEEING NONE I ALSO JUST ONE OR
FOR I HEAR YOU GUYS KEEP SAYING
A HUNDRED MILLION DOLLARS WHERE
DID THAT NUMBER COME FROM
[inaudible]
EGYPTIAN.
LL YEAH THAT AN ALIEN ONLY THREE
MILLION THIS IS EXACTLY NUMBER.
HI.
SEE IF I FIRST FISCAL YEAR.
I JUSTWE HAVE A DIFFERENT
NUMBER FROM CITY TO HAVE EVER
WORK THAT OUT OF WILL FIGURE
THAT OUT OKAY WHAT WILL --
SUBMIT YOU ARE WRITTEN DOCUMENT
SO YOU CAN CONSIDER THEM THAT
WOULD BE GREAT -- BECAUSE OURS
IS DOUBLE THAT SO IT WOULD BE
GREAT TO HAVE.
YOUR NUMBER OURS MAYBE FOR SIX
MONTHS WITHOUT THE LATEST THAT
WE HAD I DON'T KNOW IF YOU HAVE
MORE RECENT INCLUDES MORE THAN
THAT.
WILL.
THESE ARE PRIMARIES IN BUT WE
ARE REVIEWING THEM WITH CD TFA
SO WE'LL GET TO IT WILL BE IN
TOUCH WITH THEIR OFFICE TO
FIGURE OUT WHERE WE ACTUALLY
LAND ON THAT WITH THAT WOULD YOU
LIKE TO CLOSE.
EITHER OF YOU IT DOESN'T IMPROVE
TO BRIEFLY WE WE'VE HAD AYE AYE
A YEAR OF EXPERIENCE NOW WHERE
WE'VE HAD -- PROP SIXTY FOUR
IMPLEMENTED BEFORE THAT WE HAD
THEM SIERRA SAY IMPLEMENTED THAT
BETWEEN THE LEGISLATURE AND THE
WILL OF THE VOTERS THERE WAS A
STRONG COMMITMENT. TO HAVE IN
CALIFORNIA A REGULATED THRIVING
MARKET PLACE WE WE DON'T HAVE
THAT RIGHT NOW AND WE NEED TO BE
ABLE TO ADAPT AND IDENTIFY WHERE
THE PROBLEMS ARE AND ADDRESS
THOSE PROBLEMS SPECIFICALLY THE
THAT THE OVERLY HIGH TAX BURDEN
IN THIS EARLY STAGE UNIQUELY FOR
THIS BUSINESS.
IS A PROBLEM.
AND WE CAN ADDRESS IT -- IN
DOING SO WE CAN GENERATE MORE
REVENUE -- THAT WILL HELP WITH
GOOD PROGRAMS -- WITHOUT A
RESPECTFULLY ASK YOUR AYE VOTE
THANK YOU FOR YOUR CONSIDERATION.
THANK YOU AND THE SCIENCE FOR
TESTIMONY ONLY BUT WE WILL BE IN
CONTACT AND I UNDERSTAND WE WILL
ALSO GET.
THE CONFIRMATION THE AMENDMENTS
FOR SECTION FORTY ONE
REQUIREMENTS FROM YOUR OFFICE AS
WELL WE WILL THANK YOU.
THANK YOU MEDICARE THANK YOU
COLLEAGUES THANK YOU STAFF.
MOVING TO FILE ITEM NUMBER THREE
AB.
EIGHT THIRTY TWO MISTER GIBSON
WOULD YOU LIKE TO OPEN.
THANK YOU MADAM CHAIR AND
MEMBERS THANK YOU FOR ALLOWING
ME TO PRESENT ASSEMBLY BILL.
EIGHT THIRTY TWO WHICH WILL HELP
LOW INCOME FAMILIES BECOME
HOMEOWNERS CURRENTLY
CALIFORNIA'S FACING A HOUSING
CRISIS.
WITH A LACK OF AFFORDABLE HOMES
FOR LOW INCOME FAMILIES TO HELP
ADDRESS THIS HOUSING CRISIS THIS
PROPOSAL WILL STIMULATE PRIVATE
INVESTMENT.
IN AFFORDABLE HOUSING -- THROUGH
TAX CREDITS THIS TAX CREDIT
WOULD INCENTIVIZE DONORS TO
CONTRIBUTE -- TO TO CONTRIBUTE
TO NON PROFIT BUILDING HOMES FOR
LOW -- LOW INCOME RESIDENTS AND
FAMILIES SPECIFICALLY OF THESE
ARE OF NONPROFIT ORGANIZATIONS
THAT ARE BUILDING LONG TERM
RESALE AND DEED RESTRICTED HOMES.
TO TO SAIL TO FAMILIES WHO
INCOME IS BETWEEN 3280% OF THE
AREA MEDIAN INCOME.
THIS CREDIT AIMS TO ENSURE THAT
THESE HOMES REMAIN AFFORDABLE IN
OUR COMMUNITY.
IN SUPPORT OF ASSEMBLY BILL --
EIGHT THIRTY TWO WITH ME TODAY
IS MISS HOLLY DE HAY SEUSS FROM
THE LIGHT HOUSE PUBLIC AFFAIRS
ON BEHALF OF HABITAT FOR
HUMANITY'S IN ADDITION -- IS
DEBBIE ACREAGE.
I CAL RKL SKEWS ME THE EXACT
DIRECTOR OF HABITAT FOR
HUMANITY'S CALIFORNIA WHO WILL
ALSO BE HERE FOR TECHNICAL
QUESTIONS.
WITNESSES IN SUPPORT.
OF SO EVER ONCE THIS WITH.
OTHER WAY AROUND OKAY ONLY FOR
MANY WOULD LIKE HAS PUBLIC
AFFAIRS YOUR FOR TECHNICAL
QUESTIONS AND W..
TESTIMONY.
IT AFTERNOON MADAM CHAIR AND
COMMITTEE MEMBERS MY NAME IS
DEBBIE I CAL AND I AM WITH
HABITAT CALIFORNIA AND I'M
SERVING AS OUR VERY FIRST
DIRECTOR AT THE STATE LEVEL.
AND PRIOR TO THIS ROLE I LED
NEVADA COUNTY HABITAT FOR
HUMANITY UP IN THE FOOTHILLS FOR
TEN YEARS.
HOW CALIFORNIA INCLUDES FORTY
ONE HABITAT OFFICES THAT ARE ALL
FOCUSED ON PROVIDING AFFORDABLE
HOMEOWNERSHIP THROUGHOUT THE
STATE AND WE COVER THE MAJORITY
OF ALL FIFTY EIGHT COUNTIES?
INCLUDING ALL URBAN AND MOST
SUBURBAN IN MANY RURAL AREAS.
AS A FIVE OH ONE C. THREE NON
PROFIT ORGANIZATION AND
AFFORDABLE HOME PROVIDER WE
STRONGLY SUPPORT AB EIGHT THIRTY
TWO BECAUSE IT WILL LEAD TO MORE
HOUSING IN CALIFORNIA.
WE DESPERATELY NEED TO INCREASE
OUR HOUSING STOCK IN CALIFORNIA
BUT WE ESPECIALLY NEED TO
PROVIDE MORE AFFORDABLE
HOMEOWNERSHIP OPPORTUNITIES.
HABITAT FOR HUMANITY SERVES
FAMILIES THAT EARN BETWEEN
THIRTY AND 80% AND MY EXACTLY
WHAT THIS BILL SUPPORTS.
AND THEY ARE OUR EXACT TARGET
POPULATION OUR HOMES ARE ALREADY
TYPICALLY DEED RESTRICTED TO
REMAIN IN THE AFFORDABLE HOUSING
POOL.
AND THEY ALSO INCLUDE SHARED
EQUITY AGREEMENTS.
THE ELEMENTS DESCRIBED IN THE
BILL SIMILAR LEGISLATION ALREADY
SUPPORTS RENTALS SO THIS BILL
WOULD HELP INCREASE AFFORDABLE
HOMEOWNERSHIP AND WOULD HELP
FURTHER BALANCE.
THE AND THE RATIO BETWEEN
HOMEOWNERSHIP AND RENTAL.
AND STATE WIDE IT'S COSTING US
IT'S COSTING ALL OF OUR HABITATS.
HUNDREDS OF THOUSANDS MORE
DOLLARS TO PROVIDE THE SAME
NUMBER OF AFFORDABLE HOMES EACH
YEAR SO IT'S JUST GOING UP AND
UP.
SO THIS LEGISLATION WILL HELP US
RAISE MORE FROM PRIVATE
INVESTORS WE'RE VERY GOOD AT
BEING ABLE TO LEVERAGE WE WERE
SUCCESSFUL IN RED AND LEVERAGING
REDEVELOPMENT AGENCY DOLLARS AND
THIS COULD HELP REPLACE THAT --
IT ALSO WORKS REALLY WELL AT
EVERY COMMUNITY SO IN OUR WORLD
COMMUNITIES THIS THESE FUNDS
WILL GO A LONG WAY TO HELP
PROVIDE MORE UNITS.
SO HABITAT CALIFORNIA ABSOLUTELY
SUPPORTS THIS BILL IT'S
COMPLETELY IN LINE WITH HELPING
US INCREASE PRODUCTION AS WELL
AS OTHER NONPROFIT HOME
DEVELOPERS.
THANK YOU ADDITIONAL WITNESSES
IN SUPPORT.
SCENE IN WHICH IT WITNESSES IN
OPPOSITION SEEING NONE COMMENTS
AND QUESTIONS FROM THE COMMITTEE
[inaudible]
START BURKE -- SO.
ANALYSIS COM AND SEE.
THE LAST PARAGRAPH THIS BILL --
TAKES A DIFFERENT APPROACH
ALLOWS TAXPAYERS QUALIFY FOR IT
SO LONG AS A CONTRIBUTION TO
BEGIN THE PROPER LIKE THE BALLOT.
ALL QUALIFYING PROJECT.
CIRCLING CAM MODERATE INCOME
FAMILIES THE BILL FEASIBILITY
TEST IS REQUIRED.
THERE'S ALSO NO WAY OF KNOWING
HOW WE'RE FUNDS WILL BE SPENT IN
THIS BILL DOES NOT ASSIST
COMMUNITIES THE FOR QUALIFY
PROJECT.
EXPENDITURES THE STATE RESOURCES
TIRELESS.
TAXPAYERS LOCALS AND THEY'RE THE
BEST PRODUCTS WILL BE FUNDED.
I I'M NOT GONNA ASK YOU FOR
SOLUTION TO THIS RIGHT NOW.
BUT I THINK IT'S GOING TO GIVE
ALL THE WAY THROUGH ITS TIME
GOVERNOR.
YOU'RE GONNA NEED TO ADDRESS THE
ISSUE AND THE SPONSOR HAS AGREED
THERE'S A POSSIBILITY OF HAVING
THE LOW INCOME HOUSING TAX
CREDIT ALLOCATION COMMITTEE
APPROVED APPLICATIONS AND SO WE
HAVE HAD THAT CONVERSATION WITH
THE SPONSOR AND WORKING ON THAT
AS WELL AS ADDING SECTION FORTY
ONE REQUIREMENTS.
ANY OTHER COMMENTS OR QUESTIONS.
SEEING NONE MISTER GIBSON WE'D
LIKE TO CLOSE THANK YOU VERY
MUCH ON CALIFORNIA IS NOW HOME
TO NEARLY A QUARTER OF A CO THE
COUNTRY'S ENTIRE HOMELESS
POPULATION DESPITE MAKING.
UP ONLY 12% OF THE US POPULATION
AS A WHOLE RECENT -- CENSUS
FIGURES SHOW THAT THE STATE ALSO
HAS A HIGH POVERTY RATE -- IN
THE NATION AND THIS IS CERTAINLY
A WAY TO TRY TO ADDRESS THAT AND
I RESPECTFULLY ASK WHEN I BOTH
APPROPRIATE TIME THANK YOU.
THANK YOU.
MOVING ABOUT ITEM NUMBER FOUR AB
ELEVEN OH NINE ASSEMBLY MEMBER
FONG WOULD YOU LIKE TO OPEN
.
I THANK YOU MADAM CHAIR MEMBERS.
AB ELEVEN OH NINE ESTABLISHES A
PRESCHOOL PILOT PROGRAM THAT
UTILIZES PRIVATE SECTOR
INVESTMENT TO INCREASE ACCESS TO
PRESCHOOL FOR LOW INCOME
FAMILIES.
THIS WILL SUPPLEMENT THE STATE'S
EFFORT TO INCREASE THE NUMBER
PRESCHOOL SLOTS STATEWIDE.
IS WIDELY UNDERSTOOD THAN
INVESTING IN EARLY EDUCATION CAN
HAVE SIGNIFICANT BENEFITS FOR
BOTH THE CHILD'S CHANCES OF
SUCCESS AND FOR THE STATE
OVERALL.
I WAS ECONOMIST ESTIMATE THAT
EVERY DOLLAR INVESTED IN EARLY
EDUCATION PROVIDES OVERALL
BENEFITS TO OUR COMMUNITIES.
THROUGHOUT THE STATE OF
CALIFORNIA THERE ARE ONLY ABOUT
FORTY EIGHT THOUSAND EARLY
CHILDHOOD EDUCATION SLOTS.
CURRENTLY THE DEMAND WELL
EXCEEDS THE NUMBER OF SLOTS
AVAILABLE THE LINK THE
WEIGHTLESS WILL VARY FROM COUNTY
TO COUNTY HOWEVER EVEN A COUNTY
LIKE KERN COUNTY.
ON MY HOME COUNTY THERE ARE TWO
THOUSAND NINE HUNDRED AND EIGHTY
SEVEN CHILDREN AND FIVE THOUSAND
SEVENTY THREE FAMILIES ON THE
WAIT LIST FOR SERVICES.
RECENT FIGURES INDICATE THAT
OVER TWO HUNDRED FAMILIES ARE
WEIGHTLESS STATEWIDE.
THIS BILL ESTABLISHES A FIVE
YEAR PILOT PROGRAM TO FORTY
PARTNERSHIP WITH PRIVATE
INVESTMENT IN ORDER TO CREATE A
NEW FUNDING SOURCE.
THE INVESTMENT INTO A NEWLY
ESTABLISHED STATE FUND THE
CALIFORNIA PRESCHOOL INVESTMENT
FUND OTHERWISE I WAS CAPTIVE.
I INDIVIDUALS AND BUSINESSES
INVESTING CAPTIVE WILL RECEIVE A
40% STATE TAX CREDIT FOR THEIR
INVESTMENT.
THIS BILL IS STRUCTURED IN A WAY
SO THAT THERE IS NO IMPACT TO
THE GENERAL FUND OR PROP.
NINETY EIGHT AB ELEVEN OH NINE
KEEPS ALL CURRENT EDUCATION
FUNDING SOURCES HOLE WHILE
MAXIMIZING PRIVATE INVESTMENT
FOR INCREASED ACCESS FOR LOW
INCOME CHILDREN TO GET THE HEAD
START THEY NEED.
THIS BILL HAS SUPPORT FROM EARLY
CHILDHOOD EDUCATION GROUPS
INCLUDING THE CALIFORNIA
ALTERNATIVE PAYMENT PROGRAM
ASSOCIATION CALIFORNIA CATHOLIC
CONFERENCE GARDEN PATHWAYS IN
THE KERN CAN'T COMMUNITY COLLEGE
A KERN COMMITTEE FOR A
FOUNDATION.
WITH ME TODAY TO TESTIFY IN
SUPPORT IS MICHAEL SIZER WITH
THE KEN COUNTY SUPERINTENDENT
OF SCHOOLS.
WITNESSES REPORT.
MADAM CHAIR COMMITTEE MEMBERS
MICHAEL HOLE SIZE ARE HERE FOR A
DOCTOR MERRILEES BARLOW WHO'S
THE KERN COUNTY SUPERINTENDENT
OF SCHOOLS.
WE WE REALLY WANT TO THANK
ASSEMBLY MEMBER FONG FOR HIS
ACKNOWLEDGEMENT THAT.
EARLY EDUCATION PARTICULARLY
QUALITY PRESCHOOL EDUCATION IS A
REAL PRIORITY IN HIS COUNTY IN
OUR COUNTY.
AND HIS EFFORTS TO TRY TO
AUGMENT THE EFFORTS OF THE
GOVERNOR AND AND THE LEGISLATURE
TO EXPAND ACCESS -- WE OPERATE
THIRTEEN PRESCHOOL SITES
THROUGHOUT KERN COUNTY WE HAVE
AS ASSEMBLY MEMBER FONG
INDICATED WAITING LISTS AND ALL
OF THEM.
WE HAVE A FOR OTHER SCHOOL
DISTRICTS IN THE COUNTY THAT
ALSO OPERATE PRESCHOOL PROGRAMS
EACH ONE OF THEM HAVE A
PRESCHOOL WAITING LISTS BOTH FOR
PART DAY AND FULL DAY -- AB ONE
OH NINE COMPLIMENTS THE EFFORTS
OF THE GOVERNOR IN THIS BUDGET
WHO IS TRYING TO EXPAND ACCESS
WITH INVESTMENTS IN BOTH THE
INFRASTRUCTURE.
AS WELL AS ONGOING FUNDING
SUPPORT.
AB ONE OH NINE PROVIDES ONE
ADDITIONAL AUGMENTED TOOL IN THE
TOOLBOX IF YOU WILL.
AND THEN WE CERTAINLY APPRECIATE
ASSEMBLY MISTER OUT MEMBER FONG
SEPARATES. TO TO PROVIDE THAT
TOOL ON WE URGE MEMBERS OF THIS
COMMITTEE TO SUPPORT THE BILL
THANK YOU.
THANK YOU ADDITIONAL WITNESSES
IN SUPPORT.
WHEN THIS IS AN OBGYN?
WHEN IS AN OPPOSITION?
BUT WHEN IS IS IN SUPPORT.
A GOOD AFTERNOON MACKENZIE
CHRISTIANSEN ON BEHALF OF THE
CALIFORNIA ALTERNATIVE PAYMENT
PROGRAM ASSOCIATION IN SUPPORT.
THANK YOU WHEN THIS IS IN
OPPOSITION.
SEEN IN COMMENTS AND QUESTIONS
FROM THE COMMITTEE.
CNN AS EXPECTED A QUESTION
MISTER QUIRK [inaudible]
GOOD TODAY [inaudible]
YEAH.
HELLO I'M SO THANK YOU FOR
INTRODUCING MESSING AS YOU NOTED
EXPANDING ACCESS EARLY CHILDHOOD
EDUCATION IS A HUGE PRIORITY
THING FOR SO MANY OF US IN THE
LEGISLATURE.
I'M TO IS THE 40% TAX CREDIT
THAN AVAILABLE TO BOTH
INDIVIDUALS.
AND TWO BUSINESSES WHO.
YES A HIGH.
END HOWEVER WE ESTIMATED IN THE
SCALE OF INVESTMENT THAT THAT
WOULD.
CREATES OR THAT THE NUMBER
PROGRAMS WE THINK THAT WOULD BE
ABLE TO FIND WELL THIS IS
MODELED AFTER OTHER STATES I
BELIEVE MINNESOTA HAS A VERSION
OF LIKE THIS SO -- THIS IS
CERTAINLY OUR GOAL IS A
SUPPLEMENT WHAT THE GOVERNOR'S
TRYING TO DO -- WE ARE THE
GETTING OF OF WE'RE GOING
ESTIMATES AS WELL BUT WHERE
WHERE AT HOPING THAT WE CAN FIND
THEM IN THE MILLIONS OF DOLLARS --
THE ABILITY TO TO ADD THAT TO
EARLY CHILDHOOD EDUCATION AND A
ON GOING WAY.
GOT IT IS IF I IS AN INDIVIDUAL
MADE A CONTRIBUTION TO ONE OF
THESE FUNDS.
WITH THAT THEN BECOME KIND OF A
FOR PROFIT ENTITY OR WITH THESE
SCHOOLS BE OPERATED AS KIND OF
NON.
ENTITIES.
SO THE WAY THAT THE THAT PRE
PRESCHOOL INVESTMENT FUND
OPERATES IS AT IN THIS IS ROUND
DOLLARS IS -- IT WOULD IT WOULD
GO TO TO THE LOCAL SCHOOL
DISTRICTS IN TERMS OF PROVIDING
EARLY TOUCH ON EDUCATION SO
LET'S SAY YOU PUT YOU DOWN --
WERE ABLE TO PROVIDE LIKE
HUNDRED DOLLARS -- YOU WOULD
RECEIVE FORTY DOLLARS BACK IN A
TAX CREDIT A CERTAIN PERCENTAGE
WOULD GO -- TO BACK FILL NINETY
FIVE NINETY EIGHT AND THE
GENERAL FUND TO ENSURE THAT
THERE'S NO IMPACT -- TO THE
BUDGET AND THEN WE WOULD WE
WOULD ESTIMATE THAT THERE WOULD
BE EVERY THIRTY FIVE TO FORTY
DOLLARS LEFT OVER AND THAT WOULD
GO TO FUND -- OR THAT THE EARLY
CHILDHOOD CAN SLOTS WITHIN THIS
PILOT PROJECT.
OKAY UNDERSTOOD SO IT'S JUST
WITHIN THE SCOPE OF THE PILOT
PROJECT AS DEFINED YES RIGHT NOW
RIGHT NOW WE STARTED AS A FIVE
COUNTY BY THE PROJECT.
CERTAINLY WE WOULD WE WOULD HOPE
THAT WE COULD EXPAND IT FURTHER
BUT WE WANT TO BE CONSCIOUS OF
THE FACT THAT -- WE WANT TO
COLLECT THE DATA MOVING FORWARD.
THANK YOU.
ANY OTHER COMMENTS OR QUESTIONS
FROM THE COMMITTEE SAYING I WANT
TO A CLOSE.
YEAH THIS IS A WIN WIN FOR
EVERYBODY WE INCREASE ACCESS FOR
LOW INCOME CHILDREN WOULD KNOW
IMPACTS OF THE GENERAL FUND OR
PROP NINETY EIGHT HOWEVER IS
THAT.
SO THERE'S NO REASON WHY ANYONE
HOPEFULLY SHOULD BE OPPOSED TO
THIS -- BILL AND I CERTAINLY AT
THE PROPER TIME COURAGE AND I'VE.
THANK YOU.
MOVING TO ALLOW THEM FILE AMOUNT
NUMBER TWO AB.
THREE OH EIGHT SOMEWHERE
MURATSUCHI WOULD YOU LIKE TO
OPEN.
THANK YOU MADAM CHAIR MEMBERS OF
THE COMMITTEE.
I'M HERE TO PRESENT ASSEMBLY
BILL THREE ZERO EIGHT WHICH IS A
MODEST BUT IMPORTANT -- YEAH
SURE TO SUPPORT OUR MEMBERS OF
THE ARMED FORCES.
WHO ARE THE SOLE OWNERS OF SMALL
BUSINESSES? TO PROVIDE THEM WITH
SOME TAX RELIEF BY -- GIVING
THEM A RESTORING A TAX EXEMPTION --
THAT HAD PREVIOUSLY BEEN.
INTRODUCED AND PASSED AND SIGNED
INTO LAW CURRENTLY OUR LAWS DO
NOT ACCOUNT FOR THE UNIQUE
SITUATION OF ACTIVE MILITARY.
BUSINESS OWNERS WHEN THEY'RE
DEPLOYED.
THERE ARE STILL REQUIRED TO PAY
THE MINIMUM FRANCHISE TAX EVEN
IF THERE BUSINESS MAYBE
OPERATING -- IN THE NEGATIVE
DURING THE SPAN OF THEIR
DEPLOYMENT.
I THINK IT'S IMPORTANT THAT --
YOU KNOW WE GO BEYOND --
THANKING OUR US SOLDIERS FOR
THEIR SERVICE TO OUR COUNTRY AND
TO EVEN IF IT'S A MODEST
SYMBOLIC GESTURE TO WAIVE THE
MINIMUM FRANCHISE TAX.
AN ANNUAL FEE ON THE BUSINESS
FOR THE YEARS THAT THERE ARE
SERVING OUR COUNTRY -- I AM HERE --
WITH GREG CASE -- IN SUPPORT OF
THE BILL.
AND I'M SURE MEMBERS GREG HAYES
ON BEHALF OF THE CALIFORNIA
ASSOCIATION OF VETERANS SERVICE
AGENCIES WERE A CONSORTIUM OF
SIX NON PROFITS THAT SERVE --
VETERANS THROUGHOUT CALIFORNIA
AND THE AREAS OF HOMELESSNESS
AND HOUSING I WORKFORCE
DEVELOPMENT AND MENTAL HEALTH
SERVICES ESSENTIALLY THOSE VETS --
MOST IN NEED WHEN THEY RETURN TO
OUR STATE CALIFORNIA IS HOME TO
ONE POINT EIGHT MILLION VETERANS
THOUSANDS RETURN -- EVERY YEAR
AND THAT THIS IS A RATHER MODEST
BUT IMPORTANT BILL -- WHEN
MEMBERS ARE DEPLOYED -- WAVING
THIS FEE TAX -- IS IS CRITICAL
THEY'RE NOT HERE TO SERVE HI AND
OUR APARTMENT TO MANAGE OUR
BUSINESSES AND WE THINK IT'S A
PRETTY REASONABLE THING -- TO
REQUEST THE STATE DO A MODEST
BUT IMPORTANT STEP TO SUPPORT
THE VETERANS WHILE THEY'RE
DEPLOYED.
THANK YOU ADDITIONAL INNOCENTS
IN SUPPORT WITNESSES IN
OPPOSITION.
SCENE NINE COMMENTS AND
QUESTIONS FROM THE COMMITTEE.
ASSEMBLYMEMBER THANKS CHAIR
EIGHT THANKS FOR BEING IS FOR
HIS GREAT BILL I'D LIKE TO BE
OUT AS CO AUTHOR IF POSSIBLE
THANKS THANK YOU.
ANY OTHER COMMENTS OR QUESTIONS
SCENE IN WHICH LIKE CLOSE I
RESPECTFULLY ASK FOR YOUR
SUPPORT.
THANK YOU A THIRD TEST IT'S A
TEST ONLY ONLY PRINT THANK YOU