THAT [inaudible]
GOOD AFTERNOON.
A WE'RE GONNA START AS A SUB
COMMITTEE.
SENATOR MORALE WILL START WITH
FILE ITEM NUMBER FOUR SB FIVE
SIXTY TWO THESE ARE FOR
TESTIMONY ONLY.
THANK YOU MADAM CHAIR AND
MEMBERS.
GOOD AFTERNOON YOU GUYS READY.
SB A FIVE SIXTY TWO WILL
INCREASE THE CURRENT PROPERTY
TAX EXEMPTION -- FOR DISABLED
VETERANS AND THEIR UNMARRIED
SURVIVING SPOUSES.
THE PURPOSE OF THIS BILL IS TO
ENSURE -- THE EXEMPTIONS WE
PROVIDE THE VETERANS.
WILL HELP THEM KEEP UP WITH THE
COST OF THE EXPENSE OF HOUSING
WHEN OF COURSE LIVING.
CONDITIONS IN CALIFORNIA FOR A
VETERAN LIVING ONLY UNDER
DISABILITY PENSION WE CAN BE A
DIFFICULT TO AFFORD THE RISING
COST OF HOUSING -- THE CURRENT
MONTHLY TAKE HOME FOR A TOTALLY
DISABLED VETERANS -- WITH THE
PENANCE IS ONLY THIRTY THREE
HUNDRED AND FIFTY TWO DOLLARS.
ACCORDING TO THE PUBLIC POLICY
INSTITUTE THE MEDIAN HOME VALUE
IN CALIFORNIA NOW IS FIVE
HUNDRED AND FORTY SIX THOUSAND
BILL IN A WHEELCHAIR ASSESSABLE
HOME.
CAN COST OVER FIVE HUNDRED
THOUSAND DOLLARS AT MINIMUM THE
PROPERTY TAX FOR A HOME.
OF THAT COST WILL STILL EXCEED
FIVE THOUSAND DOLLARS PER YEAR
THERE'S CLEARLY A GAP BETWEEN
THE TAKE HOME PAY.
IN THE COST OF A HOME.
HOUSING PRICES ARE THE TAXES
ALONG CAN BE OVERWHELMING -- MY
STAFF WORKED WITH THE COMMITTEE
TO MAKE THE NECESSARY AMENDMENTS
FOR THIS BILL.
I HAVE NOW INCLUDED THE TEN YEAR
SUNSET PROVISION AS WELL AS
LANGUAGE THAT WILL ENSURE.
THIS BILL COMPLIES WITH SECTION
FORTY ONE OF THE REVENUE AND TAX
CODE WITH ME HERE TODAY IS
MISTER RJ WILL SAM THE PRESIDENT
OF THE DELTA VETERANS GROUP.
AND MASTER ALEX HOW REIJI A
VETERAN WHO IS A RECIPIENT OF
THE HOMES FOR OUR TROOPS PROGRAM --
WHOEVER LIKE.
TO GO FIRST.
MY NAME IS A J. R. WILSON.
I AM THE PRESIDENT OF DELTA
VETERANS GROUP AND THE PAST
STATE COMMANDER FOR THE DISABLED
AMERICAN VETERANS FOR THE STATE
OF CALIFORNIA.
I'M HERE TODAY SPEAKING YOU
SPEAKING TO YOU ON BEHALF OF D.
A. V. E.'S ONE HUNDRED THOUSAND
MEMBERS THAT LIVE HERE IN THE
STATE OF CALIFORNIA.
AS YOU KNOW THERE'S ONE POINT
SIX MILLION VETERANS IN THE
STATE OF CALIFORNIA.
WHICH ROUGHLY MAKE UP EIGHT
POINT THREE OF OUR NATIONAL.
VETERANS POPULATION ACROSS THE
COUNTRY.
OUT OF THOSE ONE POINT SIX
MILLION VETERANS CLOSE.
TO FORTY NINE THOUSAND VETERANS
UTILIZED THE CALIFORNIA DISABLED
VETERANS PROPERTY TAX.
EXEMPTION.
THOSE FORTY NINE THOUSAND
VETERANS BRING IN JUST WITH
THEIR VA COMPENSATION ALONE. TWO
POINT ONE BILLION DOLLARS INTO
THEIR COMMUNITIES.
ECONOMIES.
THAT JUST BE IN THEIR VA
COMPENSATION IF YOU THROW IN
THEIR SOCIAL SECURITY.
AS WELL THAT NUMBER GOES UP.
THE CITY CALIFORNIA WE HAVE
CLOSE.
TO FIFTY FOUR THOUSAND VETERANS
UTILIZING THE VA.
GUARANTEE HOME LOAN GUARANTEE
THAT MAKES UP ROUGHLY ABOUT
THREE POINT 3% OF OUR VETERANS
POPULATION.
THE ASSESSED VALUE OF THAT
PROPERTY.
OF THE FIFTY FOUR THOUSAND IS
ASSESSED AT TWENTY ONE CLOSE TO
TWENTY TWO BILLION.
DOLLARS SO AS YOU CAN SEE IT IS
A BENEFIT TO BRING VETERANS INTO.
OUR COMMUNITIES I MYSELF.
AM A HUNDRED SAN SERVICE
CONNECTED VETERAN AND DO UTILIZE
THE VETERANS PROPERTY TAX.
EXEMPTION AS WELL AND FOR ME
WHAT THAT MEANS.
IS A BETTER WAY OF LIFE FOR FOR
MY FAMILY.
I BROUGHT MY SON HERE TODAY HE
IS MY CAMERA MAN -- BUT HE HAS
MEDICAL NEEDS AS WELL HE HAS ONE
KIDNEY -- THOSE KIND THAT EXTRA
KIND OF INCOME THAT WE PUT BACK
INTO OUR ECONOMY.
GOES TO THINGS LIKE THAT --
THEIR HEALTH -- THEIR WELL BEING.
WE PUT IT BACK INTO OUR ECONOMY
SO THE MORE VETERANS ARE WE CAN
GET INTO OUR ECONOMY.
OF THE BETTER OUR ECONOMY IS.
AND I WOULD LIKE TO THINK
SENATOR MIKE MORRELL FOR
BRINGING UP SENATE BILL FIVE SIX
TWO IN GIVING US THE OPPORTUNITY
TO SPEAK.
ON THIS BILL TODAY IN FRONT OF
YOU.
THANK YOU SENATOR.
THANK YOU.
ALEX WOULD YOU LIKE TO INTRODUCE
YOURSELF.
MY NAME IS ALEX TEREZI AND HOURS
RAISED AND WILLIAMS CALIFORNIA
SPOT FOR FEMINIST ART OF HERE --
I DID ELEVEN YEARS IN THE US
ARMY AND THOSE ELEVEN YEARS I
DID FOR COMBAT TOURS TO IRAQ TO
AFGHANISTAN.
THE ALSO THOSE ELEVEN YEARS I
REALISTIC THREE DIFFERENT TIMES.
AND I KEPT TO A LISTING CLEARLY
KNOWING WHAT.
THE RISKS WERE INVOLVED IN THE
MILITARY AND ONE OF THE BIG
REASONS WAS BECAUSE I WAS NEVER
REALLY CONCERNED WHAT OUR
COUNTRY TAKING CARE OF ITS
VETERANS.
I'VE SEEN IT IN AFGHANISTAN
WHERE THEY JUST KIND OF GIVE A
BIG CHECK AND LET HIM OFF AND
FIGURED OUT.
OUR COUNTRY NEVER DO THAT SO
THAT WAS NEVER ONE OF MY
CONCERNS BUT AND APRIL EIGHTH
TWO THOUSAND TWELVE I STEPPED ON
I EIGHTY AND LOST BOTH MY LEGS --
THEN WHICH WILL TO REWARDED TWO
YEARS RECOVERY AND WHEN I GOT
OUT HOMES FOR TROOPS HAD OFFERED
TO BUILD ME A CUSTOM BUILT A
HOME THAT WAS HANDICAP
ACCESSIBLE -- SO I PICKED
WOODLAND -- BECAUSE THIS IS
WHERE I GREW UP AND THEY BILL ME --
CUSTOM ACCESSIBLE HOME -- ONE OF
THE THINGS WE DIDN'T REALIZE WAS
HOW EXPENSIVE.
THE REPAIRS ON THOSE HOMES ARE
AS WELL SO OFTEN THAT'S SOME OF
HER AS A WE'VE BEEN TACKLING --
SOUL IN SB FIVE SIX TWO THAT
WOULD REALLY.
LIKE.
RJ SAID GIVE US A LITTLE MORE
INCOME.
AND SO HELPS A LOT SO AGAIN
THANK YOU CENTER OF MIKE MORRELL
UP FOR INTRODUCING SB
[inaudible]
FIVE SIX TWO THANK YOU.
THANK YOU ADDITIONAL WITNESSES
IN SUPPORT.
GOOD AFTERNOON CHAIR BURKE AND
COMMITTEE MEMBERS JESSE SALINAS
THE YOLO COUNTY ASSESSOR AND I'M
HERE ON BEHALF OF THE CALIFORNIA
SISTERS ASSOCIATION -- TO TELL
YOU SHARE WITH YOU THAT WE ARE
ALSO IN SUPPORT OF THIS
LEGISLATION THANK YOU.
BEFORE WE DO WITNESSES
OPPOSITION WE HAVE A QUORUM.
IF I ONLY CHOLERA BURKE HERE ROW.
CHU GRAY MAYES.
MELENDEZ MULLIN [inaudible]
PETRIE-NORRIS.
QUIRK HERE.
RIVAS.
TING.
THANK YOU WHEN IS IN OPPOSITION.
SEEING NINE COMMENTS AND
QUESTIONS FROM COMMITTEE
ASSEMBLYMEMBER MELINDA'S.
THANK YOU MADAM CHAIR -- FIRST
OF ALL CENTER NINE ONE THANK YOU
FOR BRINGING THIS BILL FORWARD
ANYTIME WE CAN.
ADD SOME SORT OF FINANCIAL
ADVANTAGE TO OUR VETERANS WHO
HAVE SERVED -- I'M ALL ON BOARD
WITH THAT OR ANY OTHER
CALIFORNIA FOR THAT MATTER
GENTLEMEN I WANT TO THANK YOU
FOR YOUR SERVICE.
WANT TO THANK YOU FOR BEING
WILLING TO COME FORWARD AND
TESTIFY TODAY -- I'M A VETERAN
MYSELF MY HUSBAND IS A VETERAN
KNOW EXACTLY WHAT YOU'RE TALKING
ABOUT AND WITH A LOT OF FRIENDS
IN SIMILAR SITUATIONS -- SO YOUR
TESTIMONY TODAY IS VERY
IMPORTANT TO ADD TO THE CONTEXT
TO THE STORY MORE TALK ABOUT TO
THANK YOU VERY MUCH FOR COMING
WITH THAT -- MAN IN CHINA THIS
IS TESTIMONY ONLY TODAY BUT I
WOULD JUST ADD THAT TO LET
SENATOR MORAL NOW THAT WHEN THIS
WHEN AND IF THIS BILL DOES COME
UP FOR VOTE I WILL BE SUPPORTING
IT THANK YOU.
THANK YOU.
THANK YOU ANY OTHER COMMENTS OR
QUESTIONS FROM THE COMMITTEE.
SINGING AND SENATOR WOULD YOU
LIKE TO CLOSE.
NO I JUST UP THE APPRECIATE MY
FRIENDS COME IN HERE AND
TESTIFYING ON BEHALF OF THEIR
FELLOW.
OF VETERANS DISABLED VETERANS IN
WOULD BE GRATEFUL FOR YOUR BIBLE
AND ON THIS BILL THANK YOU.
THANK YOU THIS ITEM FOR
TESTIMONY ONLY TODAY.
BUT WE WILL GET WE WILL LOOK AT
IT AS WE COME BACK TO COMMITTEE
AND THANK YOU FOR YOUR
AMENDMENTS.
BRING TO AMEND THE BILL TO THE
COMMITTEE AMENDMENTS.
WITH.
WITH THAT.
MOVING BACK IN THE FILE THE FILE
ITEM.
ONE AB.
TWO SEVENTEEN SOME OF THEM WERE
TING WILL PRESENT
.
THANK YOU ARE MADAM CHAIR IT'S A
PLEASURE TO PRESENTING YOUR YOUR
BILL TO THE REVENUE AND TAXATION
COMMITTEE.
ALL THIS IS THE LOOPHOLE CLOSURE
SMALL BUSINESS AND WORKING
FAMILIES TAX RELIEF ACT OF
TWENTY NINETEEN OTHERWISE KNOWN
AS AB -- TWO ONE SEVEN AGAIN
IT'S YOUR BILL AND PROUD TO BE
JOINING ASSEMBLY MEMBER QUIRK.
AS A CO AUTHOR.
ON THERE ARE THREE MAJOR
PROVISIONS TO AB TWO ONE SEVEN
FIRST.
IS THE EXPANSION OF CALIFORNIANS
EARNED INCOME TAX CREDIT.
IT'S EXT IT'S RAISING THE
MINIMUM ELIGIBLE EARNED INCOME
TO THIRTY THOUSAND DOLLARS ARE
FOR CAL THE I. T. SEEN PROVIDES
UP TO ONE THOUSAND DOLLARS OF
REFUNDABLE.
YOUNG CHILD TAX CREDIT TO
QUALIFYING FAMILIES.
THIS IS IN PARTICULAR ALMOST AN
INCREASE OF SIX HUNDRED MILLION
DOLLARS. TO THE POOREST WORKING
CALIFORNIANS IN OUR STATE.
IT WILL MAKE THE PROGRAM NOW A
BILLION DOLLAR PROGRAM AND AGAIN
THESE ARE.
WORKING FAMILIES WHO LIVE IN
POVERTY EVERYDAY BUT GO TO WORK
ON THE PART TIME OR FULL TIME.
IN REALLY ARE THE MOST DESPERATE
ONCE AND BRING IN ON A NEED TO
HAVE A TAX CREDIT.
SECOND AB TWO ONE SEVEN PROVIDE
SIGNIFICANT TAX RELIEF TO SMALL
BUSINESSES STUDENTS AND
INDIVIDUALS WITH DISABILITIES.
THE BILL PROVIDES TWO HUNDRED
EIGHTY MILLION RELIEF -- BY
SIMPLIFYING ACCOUNTING RULES FOR
SMALL BUSINESSES AND UP TO
TWENTY FIVE MILLION.
IN GROSS WITH UP TO TWENTY FIVE
MILLION IN GROSS RECEIPTS ALSO
STUDENT LOANS THAT ARE
DISCHARGED DUE TO DEATH OR
DISABILITY.
ONE LONGER BE INCLUDED IN GROSS
INCOME.
IN FINALLY ALLOWS INDIVIDUALS
WITH DISABILITIES TO ROLL OVER
FUNDS MY FIVE TWENTY NINE
EDUCATIONAL COUNT TO AN ABLE.
ACCOUNT WITHOUT PENALTY.
IT INCREASES THE AMOUNT A
BENEFICIARY CAN CONTRIBUTE TO
THEIR OWN ABLE ACCOUNT --
GRANTEE MORE FINANCIAL FREEDOM
TO PLAN FOR THE FUTURE.
THIRD AB TWO ONE SEVEN CLOSE IS
A SERIES OF LOOPHOLES.
PROVIDED CURRENT TAX BREAKS I
ELIMINATES THE THREE THIRTY
EIGHT ELECTION WHICH ESSENTIALLY
ALLOWS TAXPAYERS TO CHOOSE WHERE
AND HOW MUCH TAXES TO PAY.
THEY ALSO CLOSE OF THE EXECUTIVE
COMPENSATION LOOPHOLE WHICH
DISCOURAGES TOP LEVEL EXECUTIVES
FROM BEING PAID EXORBITANT
AMOUNTS OF MONEY IT ALSO LIMITS
THE LOS A NON HARPER NON
CORPORATE TAXPAYERS CAN DEDUCT
ANY GIVEN YEAR. TO TWO HUNDRED
AND FIFTY THOUSAND DOLLARS IT
ALSO -- ELIMINATES THE NET
OPERATING LOSS CARRY BOX -- BUT
STILL CONTINUES TO ALLOW THE
CARRY FORWARDS SO WE'RE HONOR
HERE TO HAVE FOUR WITNESSES
TESTIFYING IN FAVOR OF THE B..
TWO ONE SEVEN I WE HAVE MISTER
LASTLY WITH THE CALIFORNIA
BUSINESS ROUNDTABLE -- WE HAVE
MISS KAMMERER WITH SMALL
BUSINESS CALIFORNIA -- WE HAVE --
MISS SAID CENTER FOR A CAL THE
ITC BENEFITS SURE.
AND ALSO MISTER ALLISON FROM
ASPEN.
WHO?
THANK YOU.
FOR WHICHEVER.
WHEN INSTANCE OF WITNESSES IN
SUPPORT?
THANK YOU COULD GOOD AFTERNOON
MADAM CHAIR LAURIE CHAMAR TODAY
I'M REPRESENTING SMALL BUSINESS
CALIFORNIA BROAD BASED SMALL
BUSINESS -- COALITION A
COALITION OF SMALL BUSINESSES
AND ALSO THE NOT VOTE NATIONAL
ASSOCIATION OF WOMEN BUSINESS
OWNERS THE CALIFORNIA CHAPTER --
AND THAT -- REPRESENTS ELEVEN
CHAPTERS FROM SAN DIEGO ALL THE
WAY UP TO READING -- ALL WOMEN
BUSINESS SOLE OWNERS OF ALL
DIFFERENT -- LEVELS OF BUSINESS
FROM YOUR ENTREPRENEURS YOUR
MICRO BUSINESSES -- ALL THE WAY
UP TO YOUR MULTI LEVEL EMPLOYERS --
WE AT THE AB SAYS TWO SEVENTEEN
IS A VERY IMPORTANT BILL FOR
SMALL BUSINESSES I TOO AM ALSO A
SMALL BUSINESS OWNER -- AND THE
CONFORMITY IS VERY VERY
IMPORTANT -- BETWEEN THE STATE
AND FEDERAL LAWS.
BASICALLY IT'S IT'S EASIER FOR
TAX PAYERS -- AT YEAH TO FILE
OUR TAX RETURNS -- I THINK IT
MAKES THINGS A LITTLE LESS
COMPLEX BEING ABLE -- TO COMPLY
IN AND ALSO -- MATCH UP THE
STATE THE FEDERAL LAWS I THINK
IS IS ALSO IMPORTANT -- THE NET
OPERATING LOSS -- YOU KNOW AT
FIRST WE LOOKED AT THAT AND WE
THOUGHT AND WE'VE LOST THAT WELL
WE DID WE LOST THAT UNDER THAT
THE PRESIDENT'S -- PLANT AND
THEN.
PUT A PUTTING IN THE EARNED
INCOME TAX CREDIT IS A GOOD --
SUPPLEMENT FOR SMALL BUSINESS IF
WE'VE LOST AND WELL WE'VE GOT
THE EITC AND SO -- FOR THAT
REASON SMALL BUSINESS CALIFORNIA
AND NAPO SUPPORTS THIS BILL.
THANK YOU ALL FOR ALLOWING ME TO
SHARE MY TESTIMONY.
INTO THE MIKE ALL RIGHT I CAN DO
THAT THANK YOU FOR ALLOWING ME
TO SHARE I WAS THE BENEFICIARY
OF THE ARE TO TEMPT INCOME TAX
CREDIT.
AND I'M ALSO IS BALD SMALL
BUSINESS OWNER -- HAD TWO KIDS
THAT WERE DISABLED IN THE BOTTOM
FELL OUT OF EVERYTHING AND I
LOST EVERYTHING -- AS A RESULT
OF HAVING ACCESS TO THIS BENEFIT
WHICH I LEARNED ABOUT THROUGH
CAL WORKS BECAUSE THEY END UP ON
CAL WORKS I CAN GO BACK TO
SCHOOL.
AND STILL IMPAIR MY KIDS I WAS
ABLE TO EVERY YEAR COUNT ON
SOMETHING THAT WAS GOING TO HELP
ME.
I'M NOT JUST IN SURVIVAL MODE I
WAS ABLE TO USE IT TO PAY OFF
DEBT I WAS ABLE TO USE IT TO
SECURE TRANSPORTATION.
AND I WAS ABLE TO USE IT TO GET
AHEAD A LITTLE BIT ON BILLS IN
THE BEGINNING OF THE YEAR SO I
CAN CONTINUE MY ACADEMIC GROWTH --
AS A RESULT IN TWENTY SEVENTEEN
I'M STILL A SMALL BUSINESS OWNER
WE SERVE OVER FIVE THOUSAND ONE
HUNDRED TWENTY TWO YOUTH AND
THEIR FAMILIES.
AND I'M ABLE TO TEACH THEM HOW
TO USE THESE RESOURCES IN ORDER
TO DO THE SAME THING I DID NOT
JUST SURVIVE BUT THRIVE.
MADAM CHAIR MEMBERS OF THE
COMMITTEE Y NELSON WITH THE
AMERICAN FEDERATION STATE COUNTY
MUNICIPAL EMPLOYEES I LIKE TO
THINK THE ASSEMBLY BUDGET CHAIR
AS WELL AS THE AUTHOR -- OF THIS --
CRITICAL -- MEASURE -- MEMBERS
ARE ORGANIZATION BELIEVES --
THIS IS A RARE OPPORTUNITY
BEFORE US TO CLOSE CORPORATE TAX
LOOPHOLES AND MAKE CALIFORNIA'S
TAX GO FAIR WHILE SECURING
FUNDING TO PROVIDE CRITICAL
INVESTMENTS IN THE MOST
VULNERABLE TAX.
AND FAMILIES -- THAT ARE --
IMPACTED MOST BY OUR ECONOMY --
AS YOU SEEN THROUGHOUT THIS
BUDGET PROCESS THEIR COMMUNITIES
IN CALIFORNIA WERE WORKING
PEOPLE ARE WORKING HARD AND
NEVER -- BUT THEY'RE STILL
STRUGGLING TO MAKE ENDS MEET
CALIFORNIA'S FOR ALL OF
CALIFORNIA FOR ALL OF OUR
VIRTUES AND ECONOMIC VITALITY
STILL HAS WON THE HIGHEST
POVERTY RACE IN THE NATION --
MORE THAN EIGHT AND TEN
CALIFORNIA CHILDREN ACCORDING TO
THE CALIFORNIA -- BUDGET POLICY
CENTER -- COME FROM WORKING
FAMILIES AND AS YOU ALL WELL TO
NO NO -- TOO WELL WORKERS IN THE
STATE CONTINUE TO FEEL THE
STRAIN OF RISING RATES CHILDCARE
FOOD AND OTHER DAILY NECESSITIES
WHILE THEIR EARNINGS ARE FAILING
TO KEEP PACE OF THESE COSTS.
THIS BILL PROVIDES MECHANISM TO
PROVIDE A CRITICAL BOOST TO
WORKING CALIFORNIANS TO THE
EARNED INCOME TAX CREDIT.
AND BY BOOSTING THE MAXIMUM
ELIGIBLE -- EARNED INCOME -- TO
THOSE TO COVER THOSE MAKE AND UP
TO FIFTEEN DOLLARS AN HOUR THIS
BILL HELPS EXPAND ECONOMIC
SECURITY TO MORE LOW WAGE
WORKERS THAN EVER BEFORE -- THAT
THIS BILL PROPOSES TO DO THIS --
IN BENEFIT THESE WORKERS BY
CLOSING REASONABLE LOOPHOLES
THAT BENEFIT LARGE CORPORATIONS
WHILE OFFERING TAX RELIEF AS
YOU'VE HEARD TO SMALL BUSINESSES.
AND HELPS TO SOLIDIFY OUR STEAKS
SHORT TERM FISCAL OUTLOOK MAKES
THIS A A UNIQUE OPPORTUNITY
SECURE WHAT WE BELIEVE TO BE A
MEANINGFUL POLICY CHANGE THAT IS
A REAR A RARE -- WIN WIN WIN IN
POLICY IN THE STATE -- THIS IS A
ONCE IN A GENERATION WE BELIEVE
OPPORTUNITY CLOSING CORPORATE
TAX LOOPHOLES WHILE PROTECTING --
MIDDLE CLASS TAXPAYERS AND
GIVING LOW WAGE WORKERS ACROSS
THE STATE A STIMULUS PACKAGE I
THINK THAT HELPS -- HELPED HIM --
MAKE ENDS MEET SO ON WE
RESPECTFULLY REQUEST I BUILT
TODAY.
AND CHAIR MEMBERS GOOD AFTERNOON
MY NAME IS ROB LAPSLEY I'M
PRESIDENT OF THE CALIFORNIA
BUSINESS ROUNDTABLE.
I TO PLEASURE TO BE HERE TODAY
IN SUPPORT OF AB.
TWO SEVENTEEN WE AT THE ROUND
TABLE MY MEMBERS REPRESENT
CALIFORNIA'S LARGE EMPLOYERS
ACROSS ALL SECTORS BUT I'M ALSO
HERE ON BEHALF OF THE CALIFORNIA
BUSINESS PROPERTIES ASSOCIATION --
THEIR PRESENT REX TIMES IN
WASHINGTON DC TODAY ROSE HE
WOULD BE HERE -- BUT THEY ARE
ALSO IN SUPPORT OF THIS MEASURE
SO I'D LIKE TO BE CLEAR WHY.
BECAUSE WE BELIEVE THAT THE
CONFORMITY BILL IS BOTH GOOD TAX
POLICY AND GOOD PUBLIC POLICY.
AND WE BELIEVE THE
SIMPLIFICATION IS VERY IMPORTANT
GIVEN WHERE WE STAND ON ALL THE
TAX LAWS.
WE BELIEVE THAT THE CONFORMITY
PROVIDES MORE PREDICTABLE STABLE
REVENUE STRUCTURE.
AND WE ALSO BELIEVE THAT THE
STABILITY AND THE REVENUE
STRUCTURE GOING TO HELP FUND OUR
SCHOOLS BOTH K. TWELVE COLLEGES
UNIVERSITIES.
AND THAT'S GOOD FOR BUSINESS
BECAUSE OF OUR FUTURE WORKFORCE.
SO THEN WE ALSO LOOK AT THE FACT
THAT THE ROUND TABLE JUST
COMPLETED A YEAR LONG STUDY --
JOBS POVERTY AN UPWARD MOBILITY
AND OUR FINDINGS MADAM CHAIR.
WHERE IS THAT WE SUPPORT THE
EXPANSION OF THE EARNED INCOME
TAX CREDIT BECAUSE IT
REPRESENTED THE MOST?
IMPACTFUL POLICY THAT CALIFORNIA
CAN PROVIDE CALIFORNIANS
THROUGHOUT THE STATE AND WE
BELIEVE WITH AB TWO SEVENTEEN
THAT THAT IS A FISCALLY
RESPONSIBLE AND SUSTAINABLE
SOLUTION TOWARDS THAT GOAL.
SO WE APPRECIATE THE MEMBERS
CONSIDERATION ON THIS TODAY AND
WE WOULD RESPECTFULLY REQUEST ON
BEHALF OF THE ROUND TABLE
CALIFORNIA BUSINESS PROPERTIES
YOUR SUPPORT.
THANK YOU.
ADDITIONAL WITNESSES IN SUPPORT.
MADAM CHAIR MEMBERS TERRY BROWN
IN ON BEHALF OF S. YEAH YOU
CALIFORNIA -- STRONG SUPPORT THE
BILL AND REMINDING MEMBERS THAT
THIS IS A POPULATION OF TAX
PAYERS THAT GOT FIFTEEN TRILLION
DOLLARS IN TAX CUTS.
UNDER THE GOP TAX CUT AND THAT'S
NET OF THESE CHANGES THAT WE'RE
DOING IN CALIFORNIA AS WELL.
AND WE'RE INVESTING IT AND QUITE
POSSIBLY THE MOST POWERFUL ANTI
POVERTY TOOL WE NOW.
THANK YOU.
CAN REALLY ROSENBERGER ON BEHALF
OF SCHOOL EMPLOYEES TEACHERS
PARENTS ADMINISTRATORS OF THE
EDUCATION COALITION IN STRONG
SUPPORT.
MADAM CHAIR MEMBERS ROBIN BLACK
ON BEHALF OF THE CALIFORNIA
SMALL BUSINESS ASSOCIATION ALSO
IN SUPPORT.
GOOD AFTERNOON JACKI ALONG WITH
AND HOW FAR IN CALIFORNIA THE
GRAYSON TO INSTRUCT SUPPORT.
BIANCA BLOOM BECAUSE WITH THE
SMALL BUSINESS MAJORITY AND
SUPPORT. TWO HUNDRED IN THIS
WITH THE LATINO COALITION FOR
HEALTH CALIFORNIA AND WE'RE
SUPPORT.
WHICH DUGGAR WITH CALIFORNIA
LABOR FEDERATION ALSO IN SUPPORT.
AND I AM COMMITTEES WITH EARLY
AGE CALIFORNIA AND SUPPORT.
SMITH TO COVER THE CALIFORNIA
TAX REFORM ASSOCIATION IN
SUPPORT.
JENNIFER BAKER THE CALIFORNIA
TEACHERS ASSOCIATION IN SUPPORT.
REBEKAH GONZALEZ NATIONAL
ASSOCIATION OF SOCIAL WORKERS IN
SUPPORT KIND OF BETWEEN OR
THOUGH DISAPPOINTED THAT I TENS
WERE NOT INCLUDED THANK YOU.
I'M KEVIN IN SCHOOL REPRESENTING
THE CALIFORNIA INTERFAITH
COALITION WHICH IS THE FRIENDS
COMMITTEE ON LEGISLATION
CALIFORNIA THAT CALIFORNIA
CHURCH IMPACT THE CALIFORNIA
CATHOLIC CONFERENCE.
THE LUTHERAN OFFICE OF PUBLIC
POLICY THE NATIONAL COUNCIL OF
JEWISH WOMEN.
THE COUNCIL ON IT AMERICAN
ISLAMIC AFFAIRS CALIFORNIA THE
GRACE INSTITUTE AND THE JEWISH
PUBLIC AFFAIRS COMMITTEE OF
CALIFORNIA WE ARE IN VERY STRONG
SUPPORT THE EXPANSION OF CAL E.
I. T. C..
AND THE CLOSING OF TAX LOOPHOLES
WE ARE DISAPPOINTED NOT TO SEE
PEOPLE WHO WORK WITH I TUNES
INCLUDED AS THEIR CHILDREN ARE
BOTH IMMIGRANTS IN US CITIZENS.
AND WE WOULD LIKE TO SEE THAT
ADDRESSED IN THE FUTURE BUT WE
ARE IN STRONG SUPPORT THANK YOU.
THANK YOU TERRY ONLY ECONOMIC
SECURITY PROJECT ACTION IN
STRONG SUPPORT OF THIS BILL
THINKING.
HI TREVOR ROGERS FROM GOLDEN
STATE OPPORTUNITY IN CAL ATC FOR
ME INSTRUCTS PORT.
CATHERINE OCCURRED ON ON BEHALF
THE FIRST FIVE LA WHILE WE DON'T
CURRENTLY DON'T HAVE A FORMAL
POSITION ON THIS BILL WE WOULD
LIKE TO STATE OUR SUPPORT. FOR
ADOPTION OF THE FEDERAL TAX
CONFORMITY IN ALLOWING THE USE
OF THIS FEDERAL TAX FUNDING TO
PAY FOR EITC INCREASES FOR
WORKING FAMILIES AND THEIR
CHILDREN THANK YOU.
GOOD AFTERNOON ON A HAS A BAD
WITH UNITED WAYS OF CALIFORNIA I
WE HAVE A BIT OF A TWEENER
POSITION I WELL WE ARE -- AT
HEARTENED BY THE MAGNITUDE OF
THIS PROPOSAL WE ARE DEEPLY
CONCERNED THE I TUNES ARE NOT
INCLUDED IN THE CAL THE ITC
PROPOSAL AND WOULD URGE YOU TO
CONSIDER INCLUSION THANK YOU.
PATTERN CHAIR MY CAROL WITH
WESTERN CENTER ON LAW AND
POVERTY IN STRONG SUPPORT OF
THIS BILL ALSO SHARING THE
CONCERNS ABOUT THE LACK OF THE
ITEMS BEING INCLUDED IN THE BILL.
KEVIN ANDERSON TO BE HAVE A
SILICON VALLEY COMMUNITY
FOUNDATION IN SUPPORT.
DIPPING AGNESE FOR THE
CALIFORNIA MARIN POLICY CENTER
WERE ALSO A BIT OF A TWEENER I'M
NINE SUPPORTER OPPOSITION --
WITH DEEP CONCERNS ABOUT THE
EXCLUSION OF THE I. TEN FILERS
CONSTRAINT TWO THOUSAND JOURNAL
BE I LEFT OUT OF THIS PARTICULAR
BILL THANK YOU.
CHRIS RESPONSE WHICH ARE THE
COALITION FOR HUMANE IMMIGRANT
RIGHTS ALSO I'M INITIAL POSITION
AND WINNERS -- BUT GIVEN THE I
TEN EXCLUSION.
MADAM CHAIR AND MEMBERS JOHN KAT
ATTACK AND THE CALIFORNIA STATE
RIGHT TO THE NFIB NATIONAL
FEDERATION INDEPENDENT BUSINESS
AND WE TAKE IN A NEUTRAL
POSITION -- BUT WE ACTUALLY
WOULD LIKE TO STATE THAT THE
THERE ARE NUMBER OF COMPONENTS
WITHIN THE BILL THAT ARE VERY
VERY HELPFUL FOR SMALL BUSINESS
SIMPLIFYING THE ACCOUNTING RULES.
AND THE PARTNERSHIP RULES VERY
MUCH HELP SMALL BUSINESSES WITH
THAT CERTAINTY THAT THEY NEED
EVERY DAY ON THE TAX CREDIT
PUTTING MORE MONEY IN THE
POCKETS OF ENTREPRENEURS
ASPIRING ENTREPRENEURS STEP IN
THE RIGHT DIRECTION.
I WHICH WE THINK ARE REALLY
REALLY POSITIVE -- WE WOULD ASK --
WE WILL DO BELIEVE THAT ONE OF
THE CORNERSTONES IS IMPORTANT
AND IF I BE IN SMALL BUSINESS
OWNERS IS I'M ASKING TO KEEP THE
DOOR OPEN FOR A CONFORMING THAT
THAT -- STATE TAX POLICY TO THE
SECTION ONE NINETY NINE A WHICH
IS THE SMALL BUSINESS DEDUCTION
AND THE FEDERAL TAX CUTS AND
JOBS ACT.
WE THINK THAT WOULD BE A STEP IN
THE RIGHT DIRECTION BUT WE THINK
THERE'S A LOT OF ADMIRABLE WITH
THINGS IN HERE AND FOR THAT
REASON WE TAKE IN NEUTRAL THANK
YOU [inaudible]
THANK YOU.
WITNESSES IN OPPOSITION.
GOOD AFTERNOON MADAM CHAIR
MEMBERS -- SILVIO FOR OUR
HEARING BEHALF THE ASSOCIATION
GLOBAL AUTOMAKERS -- I THINK I'M
GONNA START BY BY STATING YOU
KNOW THERE'S BEEN A LOT OF TALK%
ON IT FOR THE LAST WEEK ON THIS
BILL ON THE BUDGET BILL ABOUT
CONFORMITY AND CONFORMING TO
WHAT HAPPENED AT THE FEDERAL
LEVEL -- CERTAINLY AS IT
PERTAINS TO LIKE KIND EXCHANGE
PROVISIONS -- IT IS NOT
CONFORMITY -- IN THIS PROPOSAL
WERE GRABBING THE UNFAVORABLE
PROVISIONS WHICH IS THE REPEAL
AND ELIMINATION OF LIKE KIND
EXCHANGE AND WE ARE NOT GOING
BACK TO REPLACE IT.
AS THE FEDERAL GOVERNMENT DID
WITH FULL EXPENSING THEY DID
THAT AND CREATE A PROCESS AT
LEAST AT THE END THE DAY WHICH
EVERYTHING REALLY KIND OF ZEROED
OUT AND SO THERE WAS NO ECONOMIC
CAT -- THIS REALLY BOILS DOWN TO
UNFORTUNATELY -- A CAR TAX ON
LEASING OF VEHICLES -- LIGHT CAN
EXCHANGE HAS BEEN A VERY VERY
HELPFUL TOOL TO BRING LEASED
VEHICLES INTO THE MARKET -- AT A
LOWER MORE COST EFFECTIVE PRICE --
OVER THE LAST MONTH WE HAVE
BROUGHT NUMEROUS OPTIONS FORWARD --
I SIX OPTIONS VARIED IN DEGREE
ALL IN AN EFFORT TO TRY TO
MITIGATE THE POTENTIAL IMPACT OF
A LIMITING LIKE KIND EXCHANGE
NOT REPLACING IT WITH ANYTHING --
UNFORTUNATELY THOUGH WE'RE STILL
IN A POSITION WHERE REALLY A
HANDFUL OF MEMBERS MANY WHO DO A
LOT OF BUSINESS IN CALIFORNIA
PROVIDE A LOT OF ECONOMIC GOOD
FOR CALIFORNIA.
ARE GOING TO BE HIT WITH 56% OF
THE TOTAL -- THAT THE TOTAL BILL
FOR THE LIKE KIND EXCHANGE
PORTION THAT AMOUNTS TO ABOUT
FOUR HUNDRED THIRTY FIVE MILLION
DOLLARS OVER THREE YEARS.
THAT IS A VERY LARGE SUM TO TO
PUT ON A ONE INDUSTRY -- SO
AGAIN AS WE BROUGHT THESE
PROVISIONS FORD -- AND WE'VE
KIND OF TALKED ABOUT IT MORE AND
MORE WHAT HAS REALLY COME TO
LIGHT IS -- WE NEED TO FIGURE
OUT A WAY TO PROTECT THOSE
VEHICLES THAT ARE ALREADY IN THE
MARKET THE VEHICLES THAT ARE
GOING TO COME INTO THE MARKET
BEFORE THE EFFECTIVE DATE OF THE
BILL.
SO THAT THEY DO NOT END UP
HAVING ANY TROUBLE MOVING
FORWARD BUT THE REALITY IS THEY
WERE BASED ON SOME KIND OF
LEASING RATE AND A FINANCING
DEAL.
EXPECTING A LIKE KIND EXCHANGE
IS GOING TO BE THERE AND NOW WE
ARE CHANGING THE RULES OF THE
GAME RIGHT UNDERNEATH THEM.
SO WE WOULD LIKE TO WORK WITH
YOU WOULD LIKE TO WORK THE
ADMINISTRATION EVERYONE TO TRY
TO FIGURE OUT HOW TO PROTECT TO
THAT GROUP OF VEHICLES -- BUT
UNTIL WE CAN DO THAT WE CONTINUE
OUR MAIN OPPOSE THANK YOU.
GOOD AFTERNOON MEMBERS THE
COMMITTEE JOHN MOFFITT ON BEHALF
OF THE ALLIANCE OF AUTOMOBILE
AUTOMOBILE MANUFACTURERS JUST
WANT TO REITERATE THE POINTS
THAT THAT MY COLLEAGUE MADE --
CERTAINLY ARE OPPOSITION TO THE
BILL AND THE MEASURE IS NOT
ABOUT THE E. I. T. C. IT IS
ABOUT THIS JUST THIS ONE PART OF
THE BILL -- AND SPECIFICALLY
HIGHLIGHTING THE ISSUE WITH
RESPECT TO THE TWO CATEGORIES OF
LEASES THAT WE HAVE OUT THERE.
THE PROVISIONS OF THE BILL ARE
RETROACTIVE.
AND SO WE'VE GOT LEASES ENTERED
INTO AFTER THE EFFECTIVE DATE OF
THE BILL AND THAT'S ONE SET OF
LEASES.
BUT THIS BILL IS RETROACTIVE AND
APPLIES TO HUNDREDS OF THOUSANDS
OF LEASES THAT EXIST RIGHT NOW
DEALS THAT WERE MADE PEOPLE
GETTING INTO THOSE VEHICLES
BASED ON A KNOWN SET OF FACTORS
BOTH.
TAX AND FINANCIAL AND OTHERWISE
THAT ARE NOW BEING THROWN INTO
CHAOS HERE A LITTLE BIT BECAUSE
THE RETROACTIVE NATURE OF OF THE
PROVISIONS OF THIS BILL.
AND I THINK YOU KNOW -- FROM
FROM OUR PERSPECTIVE WE WE
CERTAINLY UNDERSTAND YOU KNOW ON
A LOOKING FORWARD BASIS --
THERE'S A THERE'S A POLICY
DISCUSSION TO BE HAD BUT WE
THINK IS A QUESTION OF FAIRNESS.
PEOPLE OF ALREADY ENTERED INTO
TRANSACTIONS -- SHOULD PROBABLY
BE HELD HARMLESS BY THIS
PROVISION OF THE BILL HI FOR
THESE REASONS WE ARE POST.
ADDITIONAL IN THIS IS IN
OPPOSITION.
GOOD AFTERNOON PHILLIPPI POINT
IS HERE ON BEHALF A NISSAN FOR
THE LIKE KIND EXCHANGE REASONS
THAT WERE MENTIONED BY MY
COLLEAGUES.
IN OPPOSITION [inaudible]
THAT IS.
SEEN OVER THEIR OPPOSITION
COMMENTS AND QUESTIONS FROM THE
COMMITTEE [inaudible]
IS RIVAS.
THANK YOU MADAM CHAIR OF I WILL
BE SUPPORTING THIS BILL TODAY --
BECAUSE I BELIEVE THAT THE I. T.
C. EXPANSION WILL BENEFIT OUR
HARDEST WORKING FAMILIES IN IN
OUR STATE -- BUT I HAVE CONCERNS
AND YOU KNOW MY OFFICE HAS
RECEIVED -- LETTERS -- WITH
CONCERNS OF THE EXCLUSION OF I
TEN FILERS FROM QUALIFYING FOR
THE C. I. T. C. AND I KNOW UNDER
SEVERAL PEOPLE IN THE ROOM THAT
MENTION THIS -- TO I I REALLY
BELIEVE THAT WE SHOULD BE
LOOKING AT THE CHILD IN -- A LOT
OF TIMES THE CHURCH THE CHILDREN
OF I TEN FILERS ARE US CITIZENS --
AND IN THESE FAMILIES SHOULD BE
BENEFITING FROM THIS CREDIT YOU
KNOW IS IT YOUR INTENT OR IN THE
INTENT OF THIS BILL. TWO OF
INCLUDE THEM OR EXCLUDING I'M
JUST I JUST WANT SOME
CLARIFICATION ON THAT SO THIS
THAT THIS BILL IS -- A PART OF
OUR BUDGET DELIBERATIONS -- BOTH
THE ASSEMBLY AND THE SENATE
INCLUDED I TEN FILERS IN EACH OF
THEIR YEAH I. T. C. BUDGET
PROPOSALS WE WERE NOT ABLE.
TO REACH AGREEMENT WITH THE
ADMINISTRATION ON THAT
PARTICULAR ITEM.
I IMAGINE IT'S BEEN THERE WILL
BE DISCUSSING NEXT YEAR BUT THE
FIRST FOR NOW AND THIS BILL IT
DOES NOT INCLUDE.
YOU KNOW I THINK BEFORE I VOTE
ON THE FLOOR I WOULD LIKE MORE
CLARIFICATION ON WHY THE I TEN
PILAR'S WORKS COLLUDED IF.
WE HAVE ANY WHAT DOES.
IF THERE IS ANYONE ABLE TO
PROVIDE THAT HERE WE WE SO FOR
FOR THIS LEGISLATION PARTICULAR
WE HAVE DEPARTMENT OF FINANCE
ALEJO -- TO PROVIDE ANY SORT OF
BACKGROUND WITH FTP SO -- MISTER --
HE'S HE'S ONE OFTEN IS THE
DEPUTY DIRECTOR OF FINANCE AND I
THINK YOU CAN EXPLAIN SOME
THINGS THANK YOU.
HI THERE VEGAS WHEN OFTEN CHIEF
DEPUTY DIRECTOR AT THE
DEPARTMENT OF FINANCE
[inaudible]
YES.
YOU HAVE TO LOOK AT HER SORRY.
YESTERDAY I KNOW SEEMS ODD.
YOU'RE NOT BEING APPLIED.
YES SO -- AS MR TING MENTION IN
THE DELIBERATIONS THIS WAS REAL
EIGHT MOST OF OUR DELIBERATIONS
WERE AROUND HOW MUCH ONE TIME
VERSUS ON GOING SPENDING WE HAVE
IN OUR BUDGET AND ALTHOUGH THE
OVERALL SURPLUS NUMBER.
OF TWENTY ONE AND A HALF BILLION
DOLLARS HAS GOTTEN A LOT OF
ATTENTION -- OUR CALCULATION IS
THAT MOST OF THAT MONEY IN THE
SURPLUS IS ONE TIME AS MUCH AS A
NEARLY 90% WERE AS A PROGRAM
LIKE THE EITC IS AN ONGOING
PROGRAM.
SO WE FACE SOME TRADE OFFS IN
DESIGNING THIS SPECIFIC PROGRAM
IN TERMS OF HOW MUCH DEBT DO THE
OVERALL EXPANSION VERSES
INCLUDING YOU POPULATIONS AND
THIS IS WHAT IN THE AGREEMENT WE
WERE ABLE TO INCLUDE THIS YEAR
BUT CERTAINLY.
IF THE FISCAL SITUATION IMPROVES
IN FUTURE YEARS THAT IS
SOMETHING THAT THE
ADMINISTRATION WOULD CERTAINLY
LOOK AT IN IN JUST JUST TO
CLARIFY THE WAY THAT THE
AGREEMENT WENT WAS.
ARMED -- THERE WAS REALLY DESIRE
TO GET UP TO THIRTY THOUSAND TO
GET THAT INCOME LEVEL SO IT
MEANT A LITTLE BIT OF A TRADE
OFF WHERE.
YOU QUICKLY HAVE DONE MORE FOR
THE CURRENT INCOME POPULATION WE
SITE TO EXPAND. TO THE HIGHER
INCOME POPULATION BUT IT MEANT
THAT PER.
PER FAMILY THEY THEY WILL BE
ABLE TO DO AS MUCH SO THAT'S
PART OF THE TRADE OFF AS WELL --
YOU KNOW YOU MENTIONED THAT THAT
THIS IS SOMETHING THAT WE WILL
CONSIDER IN THE FUTURE AND I
REALLY HOPE -- THAT THAT IS THE
CASE YOU KNOW I THINK I TEN
FAMILIES AND FILERS CONTRIBUTE.
A LOT TO OUR STATE AND I THINK
THEY ALSO WILL BENEFIT FROM THIS
CREDIT AND THAT'S SOMETHING.
I WILL BE FOLLOWING UP ON AND
MAKING SURE THAT.
WE DO INCLUDE THEM.
THANK YOU.
I THINK YOU BRING UP AN EXTRA
POINT AGAIN -- THIS IS A TAX
CREDIT FOR WORKING FAMILIES SO
IT DOES MAKE SENSE TO INCLUDE
ALL WORKING FAMILIES IN THAT IN
THAT TAX CREDITS AGAIN.
THAT WAS NOT SOMETHING WE'RE
ABLE TO GET DONE THIS TIME WE
WOULD ANTICIPATE BRING IT UP
NEXT YEAR.
ADDITIONAL COMMENTS OR QUESTIONS.
I REMEMBER GRAY. FOR THE RECORD.
I'VE NEVER SEEN SO MUCH
CONGENIALITY AMONGST YOUR SCORE.
THANK YOU MADAM CHAIR -- AND
THANK YOU.
GERMAN THING FOR YOUR
PRESENTATION HERE TODAY AND FOR
ALL THE HARD WORK ON THE BUDGET.
ON YOUR PREPARATION. FOR THIS
HEARING.
I DO HOMEWORK AND WENT BACK AND
AS YOU KNOW.
THE SHOOTING AS RANMA COLLEGE NO
THIS IS MY NINETEENTH YEAR.
WORKING HERE IN THIS INSTITUTION
IN SOME SOME LEVEL OR ANOTHER
[inaudible]
AND I'VE NEVER SEEN IN NINETEEN
YEARS SO MUCH CONSTERNATION.
ATTACK CONFORMITY.
SO I THOUGHT WELL I'M GETTING
OLD MY HAIR'S GETTING GRAY MAYBE
I FORGOT.
AND I WENT BACK AND LOOKED AND
YOU KNOW WE'VE DONE A THEY
ALWAYS CONFORMED THERE'S TWO
DIFFERENT TYPES OF CONFORMITY
BOTH SPECIFIC AND THEN KIND OF
MORE ON THE BY STATE APPROPRIATE.
IN THE PAST TWENTY YEARS WITH
THEM BOTH.
RIGHT -- SPECIFICALLY IN TWENTY
FIFTEEN TWENTY TEN TWO THOUSAND
FIVE WE DID SPECIFIED CONFORMITY
WHICH LOCK YOUR BILL IN
[inaudible]
NINETEEN NINETY SIX AND WE ALL I
THINK ACCEPT CONFORMITY IT IS
KIND OF A BASIC GOOD TENNIS
RIGHT THIS IS IT IS BETTER
BETTER COMPLIANCE LESS PENALTIES --
EASIER ON THE TAXPAYER WHICH IS
WHY WE WE DO THOSE THINGS EVEN
THOUGH OUR STATE AND FEDERAL
GOVERNMENT OFTENTIMES.
CAN'T FIND AGREEMENT ON MORE
GENERAL POLICY ISSUES.
AND I WHILE I DON'T ACCEPT
CONFORMITY IS JUST A BLANK CHECK
GOOD THING BECAUSE CONFORM WITH
BAD FEDERAL TAX POLICY IS
CERTAINLY SOMETHING I THINK WE
WANT.
TO AVOID AND I THINK IN SOME
DEGREE THE PACKAGE THAT MR TANG
AND LEADERSHIP NEGOTIATED -- IS
A LITTLE JUICE RIGHT GIVEN THE
FACT THAT THERE ARE SOME ISSUES.
BUT YOU KNOW ON THE OTHER HAND --
BOB LET ME GIVE A SPECIFIC
EXAMPLE SIX SAMPLE OF OF TAX
CONFORMITY WHY WOULDN'T WOULDN'T
WANNA SUPPORTERS -- SO SCARED
INCOME RIGHT THIRTY STATES --
DON'T TAXES.
TWENTY TWO THAT'S AN AREA WHERE
I WOULDN'T WANT TO JOIN THE
FEDERAL GOVERNMENT TAXING OUR
SENIORS AS THEIR TRYING TO MAKE
ENDS MEET -- BUT FOR THE MOST
PART AGAIN I THINK IT'S POSITIVE
THING.
AND AGAIN ISSUE STRUCK ME THE
CONSTERNATION AND THE RULING IN
ONLINE AND ALL THIS IS A TOUGH
VOTE THIS AND THAT THE NEXT
THING -- JUST SEEMS A LITTLE
INSINCERE -- I'M GONNA BE
SUPPORTING IT HERE TODAY.
AND I URGE MY COLLEAGUES TO DO
SO AS WELL AND I THANK YOU AGAIN
FOR ALL YOUR HARD WORK.
THANK YOU KNOW I WAS HONORED TEN
AGAIN KERRY THAT THE CONFORMITY
BILL YOU MENTIONED TWENTY
FIFTEEN I KERRY WHEN I WAS.
THE PREVIOUS CHAIR OF THIS
COMMITTEE AND I THINK THAT WAS
ONE OF THE REASONS WHY WE
DECIDED TO MAKE THIS A A BILL
WHICH ARE ARE ARE CHAIR WOMAN IS
CARING.
BECAUSE THAT YEAR THERE REALLY
WASN'T MUCH.
CONSTERNATION AND THERE REALLY
WASN'T -- ANY CONTROVERSY ABOUT
THAT PARTICULAR BAILEY WAS JUST
STRAIGHT.
STREAMLINING OF THE TAX PAYING
PROCESS WHICH I THINK OVERALL
MOST PEOPLE WERE IN FAVOR OF
SERVICE AGAIN I THINK.
WE APPRECIATE THE MINISTRATIONS
ON THAT DISCUSSION TO THIS POINT
AND TO REALLY TURN OVER INTO A
LEGISLATIVE BILL BUT I THINK
THAT'S WHERE ULTIMATELY.
WE THOUGHT IT WAS MORE
COMFORTABLE TO LET IT GO THROUGH
THE POLICY PROCESS SO THAT WE
COULD.
YOU KNOW REALLY HAVE A OF FULLER
VETTING OF THAT OF THAT
[inaudible]
THIS BILL.
IT WILL FOLLOW UP QUESTION
MISTER TING AND THE IMPETUS TO
THE AUTHOR AS WELL IF THAT'S
APPROPRIATE LANDING SPOT BUT
WILL THIS BE THE ULTIMATE
VEHICLE SENT DOWN TO THE
GOVERNOR'S DESK.
THAT'S MY UNDERSTANDING.
SO.
THERE IS A A MIRROR OF THIS BILL
BEING VOTED ON I THINK.
THAT THEY ARE PREPARING TO VOTE --
FOR IT'S ELIGIBLE AT FOUR
FIFTEEN TODAY SO IT IS THE SAME
BILL IT JUST HAS A DIFFERENT
NUMBER IT'S AB -- NINETY ONE SO
YES THE POLICY AND THAT BILL IS
THE SAME AS THIS POLICY BUT WILL
THIS BE THEN WILL THIS NUMBER BE
THE NUMBER OF BILL THAT WE VOTE
ON FOR WE DON'T KNOW YET.
WE DON'T KNOW YET.
I DON'T KNOW YET.
LISTEN I JUST WORK HERE.
NO MINUTE ALL SINCERELY IN ALL
SINCERITY THERE ARE TWO BILLS
THAT LOOK EXACTLY THE SAME --
ONE THAT WILL BE ON THE FLOOR IN
THE SENATE MY UNDERSTANDING THAT
WILL BE ON THE FLOOR AND THE
SENATE TODAY.
THANK YOU MADAM CHAIR AND THEN
I'LL TAKE IT FOR YOUR COMMENTS --
TO THE VERY DIRECTLY THAT THE
POLICY WERE VOTING ON IS WHAT
WILL LAND ON THE GOVERNOR'S DESK
THAT'S INTENTIONALLY TO THE
STATE ASSEMBLY WON'T SPEAK FOR
OUR COLLEAGUES ON THE RED CARPET
THAT IS THE INTENTION OF OF US
THE OTHER ARAB THE ASSEMBLY THE
TENSION LANCASTER.
THE AND THEN JUST TO CLARIFY ABEEN AB NINETY ONCE A BUDGET
TRAILER BILL.
SO THE SENATE FELL COMFORTABLE
PUTTING THIS IN THE BUDGET FOR
THE BALL OUR OUR HOUSE PREFERRED
IT TO BE.
IN OUR REGULAR ASSEMBLY BILL
THAT WOULD GO THROUGH THE POLICY
PROCESS [inaudible]
DOCTOR PARK [inaudible]
VERY INTERESTING.
EVERY DAY IS A NEW ADVENTURE
YEAH -- SO YES I UNDERSTAND.
THE CONCERN -- FROM A NUMBER OF
AGENCIES ABOUT THE I TEN AGAIN.
WE WANTED TO GO UP -- TO THIRTY
THOUSAND IN TERMS OF WHO COULD
GET THE E. I. T. C..
AND IF WE DO THAT THEN THERE'S
THE ADMINISTRATION FEELS THERE'S
NOT ENOUGH MONEY TO DO THE I TEN
SO IT WAS. ONE OF THE OTHER SO.
WE'RE WE'RE DOING.
THE EXPANSION UP TO THIRTY
THOUSAND AND PERHAPS NEXT YEAR
WE CAN LOOK FURTHER -- NFIB
NATIONAL FEDERATION OF
INDEPENDENT BUSINESSES -- MR
CABBAGE CHECK -- I DON'T HAVE A
LETTER HERE SO I'M NOT QUITE
SURE WHAT PROVISION YOU WERE
TALKING ABOUT BUT I THINK IT'S
PROBABLY TOO LATE FOR THIS YEAR
I WILL BE GLAD TO TALK TO MY CO
AUTHORS BUT I THINK IT'S
PROBABLY A LITTLE LATE RIGHT NOW --
I DO HAVE THE CONCERN.
IN LISTENING TO THE AUTO
MANUFACTURERS THAT.
THEY HAVE CONTRACTS OUT NOW THAT
ARE GOING TO BE ADVERSELY
AFFECTED BY A CHANGE IN.
IN THE ARE.
CODE FOR CONTRACTS THEY'VE
ALREADY WRITTEN AND THEY TOLD ME
THE NUMBER THEY LOSE IS ABOUT A
HUNDRED MILLION DOLLARS. HUNDRED
AND TWENTY I THINK -- I AM
CONCERNED ABOUT THAT I DON'T
KNOW WHETHER THERE IS TIME AND
ABILITY TO TAKE A LOOK AT THAT
BUT I WILL.
CERTAINLY DISCUSS IT WITH -- THE
CHAIR AND MISTER CHANG AND WE'LL
SEE WHERE WE CAN GO.
DO YOU HAVE -- COMMENTS CHAIR OR
I'M HAPPY TO SHARE MY COMMENTS
WHICH TO LIKE TO SHARES AND HAVE
THE SHOWING -- UNFORTUNATELY.
THE AUTOMATED I HAD NOT HEARD
FROM THOSE FOLKS AND TOLD TODAY
I GOT AMENDMENTS IN -- SO THAT'S
THE FIRST I AM ACTUALLY I
HAVEN'T EVEN HAD A CONVERSATION
WITH MY STAFF HAS HAD A
CONVERSATION WITH THEM SO I
UNDERSTAND THEY'VE BEEN IN
CONVERSATIONS WITH OTHERS FOR A
MONTH BUT FOR THE LAST. TWO
WEEKS THAT WE'VE BEEN MY OFFICE
HAS BEEN INVOLVED WE HAVE NOT
HAD ANY CONVERSATIONS AND I WAS
GIVEN I THINK IT WAS SEVENTY
EIGHT PAGE.
AMENDMENT OR DOCUMENT TODAY TO
TRY TO MAKE CHANGES.
OUR HOPE IN SOME OF THE CHANGES
THAT HAVE BEEN MADE FROM THE
ORIGINAL PROPOSAL WERE OUR
ATTEMPT TO FIND A GOOD LANDING
SPACE I UNDERSTAND THAT THERE
ARE SOME RETROACTIVITY.
I THINK I I UNDERSTAND THAT AND
MY HOPE WOULD BE AT SOME POINT
THAT WE COULD DEAL WITH THAT.
HOWEVER WITH THE LATENESS OF THE
HOUR OF THEM COMING TO THE TABLE
AT LEAST FOR MINE FROM MY
PERSPECTIVE IT IS A CHALLENGE
BUT I AM OPEN TO THE
CONVERSATION MOVING FORWARD.
VERY GOOD.
THANK YOU MISTER SMITH.
WELL THANK YOU MADAM CHAIR I
ACTUALLY CAME IN TODAY WITH A
WHOLE BUNCH OF DIFFERENT
QUESTIONS AND I PROBABLY WON'T
GO THROUGH ALL OF THEM -- BUT DO
YOU KNOW TALKING ABOUT THIS --
LIKE KIND EXCHANGE QUESTION
BECAUSE IT SEEMS LIKE THE ONLY
GROUP THAT IS OPPOSED -- TO TO
THIS -- SEEMS TO BE OF THE THE
AUTO MAKERS -- AND I AM IN FAVOR
AS A FORMER A TAX PREPARER THINK
I'D PREPARE TAXES FOR SIX OR
SEVEN YEARS AS A FINANCIAL
ADVISER.
I LIKE CONFORMITY JUST AS A
MATTER OF OF OF PUBLIC POLICY --
IT'S MUCH SIMPLER AT TO BE ABLE
TO THE FILE READ THE FILE YOUR
RETURN OF FACT I WAS THINKING
WITH THIS CONVERSATION CAME UP
OF LIKE ALL HIGH NEED TO GO
AMEND MY CALIFORNIA RETURN FROM
LAST YEAR BECAUSE I DIDN'T TAKE
SOME DEDUCTIONS BECAUSE THEY
WEREN'T ELIGIBLE ON THE FEDERAL.
RETURN WHEN I COULD HAVE TAKEN
THEM ON THE STATE RETURN SO I
MIGHT STILL GO DO THAT IF YOU
GUYS -- LISTENING HAVEN'T DONE
THAT THERE'S STILL.
THERE'S A IT'S NOT -- TO IT'S
NOT TOO LATE IN THE READ SO MANY
PEOPLE.
DON'T THINK ABOUT THAT THEY
USUALLY PUT THE DEDUCTIONS IN
THOSE SORTS OF THINGS ON THE
FEDERAL RETURN AND THEN IT FLOWS
THROUGH TO THAT TO THE STATE
COMPUTER DOES THAT OFTENTIMES
AND THEN IT'S IT'S DONE -- BUT
THIS IS GENERATING -- SO THIS IS
ONE POINT SIX BILLION IN IN
REVENUE BECAUSE WE ARE
CONFORMING TO MANY PIECES OF THE
FEDERAL TAX CODE BUT NOT ALL OF
THEM -- THE ONE CONCERN THAT THE
AUTOMAKERS HAD BROUGHT UP IN
REGARDS TO LIKE KIND EXCHANGES --
IS THIS THAT ON THE FEDERAL SIDE --
THE PROVISIONS CHANGE BUT THEN
THEYALSO ENDED UP WITH A BOB
WITH BONUS DEPRECIATION -- YET
WE'RE NOT DOING THAT HERE IN
CALIFORNIA NINE I KNOW THAT --
FACT I'M LOOKING AT THIS NUMBER
I'M I'M SURE I GOT THIS AT THIS
IS MY STAFF FOR THE FATHERS WERE
LOOKING AT THIS BUT THERE IS ONE
POINT SIX BILLION DOLLARS IN
THIS YEAR IN REVENUE IT'S GONNA.
DECLINE OVER THE NEXT COUPLE OF
OF YEARS BUT THIS ISN'T REVENUE
NEUTRAL -- THE EITC EXPANSION IS
SIX HUNDRED MILLION AND EXISTING
E. I. T. C. IS ALREADY -- FOUR
HUNDRED MILLION AND SO THERE'S
AN EXTRA SIX HUNDRED MILLION --
OUT THERE AND WHEN WE'RE TALKING
ABOUT LIKE KIND ON THE LIKE KIND
EXCHANGE AT LEAST THE IMPACT IT
WOULD BE SOME AROUND TWO HUNDRED
AND FORTY MILLION.
SO I WOULD THINK EVEN THOUGH. TO
OUR THIRTY EIGHT MILLION AS WHAT
I HAVE IT WOULD SEEM AS THOUGH
WE'VE GOT A LITTLE BIT OF TIME.
TO BE ABLE TO TO FIGURE THIS OUT
IS THERE ANY ROOM AT ALL FOR
NEGOTIATIONS.
WITHIN THE NEXT COUPLE OF DAYS I
KNOW WE GET THIS OUT OF OUR
COMMITTEE WE CAN'T AMEND IT --
ON THE FLOOR I UNDERSTAND THERE
ARE SOME OTHER BUT TIME
CONSTRAINTS IT THERE BUT IT
SEEMS APPROPRIATE TO BE ABLE TO
TO GET EVERYBODY THAT TO BE ONE
BIG HAPPY FAMILY ON THIS -- OF
THIS MIGHT BE ONE OF THOSE
THINGS THAT WE CAN IT CAN WORK
OUT AS OR ANY TIME FOR THAT.
SO I'LL SPEAK FOR THE
ADMINISTRATION -- AND THE
DEPARTMENT OF FINANCE I THINK
THE KEY THING HERE IS THAT THE
BUDGET I KNOW PASSED OFF THE
FLOOR LAST WEEK.
AND THIS PACKAGE -- WITH ITS
REVENUES AS WELL AS THE EITC IS
PRETTY ESSENTIAL TO THE OVERALL
BUDGET PACKAGE -- AND IN FACT
THE BUDGET THAT WAS ADOPTED
ASSUME THE REVENUES THAT WERE IN
THIS PACKAGE SO WE DO BELIEVE
THAT IT IS ESSENTIAL. TO GET
THESE REVENUES -- BEFORE THE
GOVERNOR CAN ACTUALLY SIGNED THE
BUDGET ON WITH REGARD TO THE
SPECIFICS OF THE ONE POINT SIX
BILLION -- BEING LARGER THAN THE
ONE BILLION OF THE EITC A COUPLE
OF BRIEF POINTS FIRST I THINK AS
THE ASSEMBLY MEMBER MENTIONED --
THAT ONE POINT SIX BILLION IS
HIGH IN THE FIRST YEAR BECAUSE
IT OF A QUIRK OF TIGHTENING AND
OVER TIME IT ACTUALLY DECLINES
TO ONE POINT THREE BILLION SO
THAT THE CREDIT.
AND THE REVENUE ARE MUCH MORE
ALIGNED AND THAT WAS ALWAYS THE
PURPOSE IN TERMS OF DEVELOPING
THIS TALK INFORMALLY PACKAGE IN
pBENEFITS THAT WE DISCUSSED.
I THINK THE SECOND THING IS THAT
THESE REVENUES ARE UNCERTAIN
BECAUSE THIS IS THE FIRST TIME
THAT WERE ADOPTING MANY OF THESE
PROVISIONS BECAUSE THE FEDERAL
GOVERNMENT ADOPTED IN JUST OVER
A YEAR AGO.
SO WITH THE DEPARTMENT OF
FINANCE AND ADMINISTRATION ARE
WORKING TO BE VERY CAREFUL ABOUT
THESE ESTIMATES AND WE NAY
OVERSHOOT WE MAY UNDER SHOOT IN
TERMS OF ONE THE MONEY ACTUALLY
COMES AND BUT WE WANTED TO MAKE
SURE THAT WE WERE CONSERVATIVE
IN THOSE ESTIMATES BECAUSE IF
THE REVENUE.
DOES COME IN LOWER THAN EXPECTED --
THAT COULD LEAVE A BIG HOLE IN
THE BUDGETS WE WANT TO BE VERY
CAREFUL SO THERE IS A LITTLE BIT
OF A BUFFER THERE AND THEN THE
FINAL THING IS IN TERMS OF THE
BUDGET AGREEMENT ITSELF -- THESE
REVENUES AS MENTIONED ARE PART
OF THE BUDGET AGREEMENT SO WHEN
IT COMES TO OUR PROPOSITION
NINETY EIGHT LEVEL WHEN IT COMES
TO SOME OF THE OTHER ONGOING
PROGRAMS THAT WERE INCREASED.
AS PART OF NEGOTIATIONS WITH THE
LEGISLATURE.
ON THOSE ARE ALREADY TAKING AND
THESE ASSUMPTIONS THAT ARE PART
OF THIS BILL -- SO WE DO THINK
AT THIS POINT IT WOULD BE HARD
TO UNWIND -- ELEMENTS OF THE
BILL.
I HAVE A QUESTION ON THAT IT
MEDICARE I DO HAVE A COUPLE MORE
BUT THAT'S FINE.
IS ON THAT SITE ON IT.
DO YOU HAVE AN ESTIMATE AS TO IF
WE DON'T WITH THE ACTUAL
RETROACTIVITY PORTION HOW MUCH
THAT WOULD COST.
SO I I WILL MAKE ONE COMMENT
ABOUT THAT AND THEN I MAY DEFER
TO MY COLLEAGUES A CHAMBER ONE
AS WELL WHO'S WITH ME FROM THE
DEPARTMENT OF FINANCE.
BUT MY UNDERSTANDING IS THAT
THIS PROVISION -- IS RETROACTIVE
TO JANUARY FIRST OF THIS YEAR IS
THAT CORRECT.
ACTUALLY TO JANUARY TENTH OF
THIS YEAR THAT'S RIGHT JANUARY
TENTH OF THIS YEAR AND THE
REASON WE CHOSE THAT DATE IS
BECAUSE THAT'S WHEN THE
GOVERNOR'S BUDGET WAS PUT OUT --
JANUARY NINTH I BELIEVE ACTUALLY
AND SO WHILE THIS BILL MAY NOT
BE PASSED UNTIL NEXT WEEK OR OR
WHATEVER THE PASSAGE STATE IS --
WE BELIEVE THAT WHEN THE
GOVERNOR PUT ITS BUDGET OUT --
EVERYONE WAS ON NOTICE THAT
THESE PROVISIONS COULD BE IN THE
LAWS SO WE DON'T THINK THAT
THERE IS REALLY NO NEED OF
SURPRISE HERE WITH REGARD TO
THESE PROVISIONS.
I THINK I WOULD AGREE TO
DISAGREE BUT SO eYOU
AMOUNT FROM THE APARTMENT OF
FINANCE OF WHAT THE COST OF
RETRO OF REMOVING THE RIGHT I
JUST SO THAT WE HAVE A NUMBER.
OF THE RETROACTIVITY WOULD COST
WHAT IT WOULD COST TO TAKE I DO
NOT HAVE NOTS IN FACT I'M NOT.
REALLY CLEAR WHAT THAT PROPOSAL
WOULD BE OKAY ALL RIGHT THINKING
[inaudible]
BUT YEAH.
AND IT ACTUALLY A MINUTE ON
CHANGE GEARS HERE FOR JUST A
LITTLE BIT ACTUALLY IT WAS A
LITTLE FASCINATED -- TO HEAR
ABOUT THIS YOUNG CHILD -- BUT
TAX CREDIT -- SO THAT AS A
REFUNDABLE CREDIT AS WELL RIGHT
SO THAT'S UP -- FOR BUT BUT SO.
BECAUSE IT'S NEW AND HAVEN'T HAD
A WHOLE TIME THE TO DIG INTO IT
CAN I DIDN'T HEAR ANYBODY GIVE A
GIVE A BRIEF ON THAT OF HOW
THAT'S GOING TO WORK.
AND THEN PART OF THAT TOO IS
DOES IT START ON THE FIRST
DOLLAR OF MADE OF GOT A BRIEF
HERE FROM THE CAL BUDGET CENTER.
AND IT LOOKS LIKE AT LEAST FROM
WHAT I CAN TELL I DON'T HAVE THE
COLOR CODING PROPER -- BUT DOES
THAT START ON THE FIRST DOLLARS
OF SOMEBODY MAKES A HUNDRED
DOLLARS OR FIVE HUNDRED DOLLARS
IN FILES I DO THEY GET A
THOUSAND ARE TAX CREDIT OR DOES
THAT.
BEGIN TO SCALE UP LIKE THE REST
OF THE HTC.
SURE SO MAKE TWO COMMENTS ON
THAT I THINK FIRST IS ONE THING
THAT WE REALIZED IN SPEAKING
WITH PEOPLE ABOUT THE EITC.
IS IT IS IT CAN BE A VERY
COMPLICATED PROPOSAL SO WHEN YOU
WALK UP TO SOMEONE ON THE STREET
AND SAY HEY THE EARNED INCOME
TAX CREDIT.
OFTENTIMES PEOPLE MAY NOT EVEN
KNOW WHAT YOU'RE DISCUSSING AND
THEN THAT MAKES IT HARDER FOR
PEOPLE TO CLAIM THE BENEFIT SO
WHAT WE REALIZED WITH THIS BILL
THIS PROPOSAL IS IN ADDITION TO
GENERALLY.
STRENGTHENING THE CREDIT MAKING
IT MORE GENEROUS AND AS MR TING
MENTIONED EXTENDING IT TO PEOPLE
WHO MAKE THIRTY THOUSAND DOLLARS
WHICH IS.
IF THE MINIMUM WAGE WERE FIFTEEN
DOLLARS AN HOUR ABOUT THE INCOME
THAT YOU WOULD MAKE FOR A FORTY
HOUR A WEEK FULL TIME JOB. FOR A
YEAR WE ALSO WANT TO SAY IF YOU
HAVE A YOUNG CHILD OR CHILDREN
UNDER THE AGE OF SIX GIVEN THE
PREVALENCE OF CHILD POVERTY HERE
IN CALIFORNIA AND IT'S A GOAL
FOR THE GOVERNOR AND FOR I KNOW
FOR SO MANY OF YOU. TO REDUCE
CHILD POVERTY IN CALIFORNIA ON
TOP OF THAT YOU SHOULD BE ABLE
TO BE ELIGIBLE FOR MONEY TO
SUPPORT YOU AS YOU RAISE YOUR
KIDS AND IN OUR JANUARY PROPOSAL
IT WAS FIVE HUNDRED DOLLARS.
A THROUGH THE NAY REVISION AS WE
REFINED A REVENUE ESTIMATES AND
SOME OF THE WAYS WE WERE
DISCUSSING INCREASED IT TO A
THOUSAND DOLLARS SO BASICALLY
THE MESSAGE THAT.
WE WANT TO CONVEY IN
NEGOTIATIONS WITH MR TANG IN THE
REST OF THE LEGISLATURE IS IS IN
ADDITION TO THE EARNED INCOME
TAX CREDIT GENERALLY WHICH WERE
MAKING WORK -- GENEROUS A VERY
SIMPLE MESSAGE IF YOU MAKE UNDER
THIRTY THOUSAND DOLLARS.
WE HAVE A CHILD UNDER SIX AND
YOU WORK THEN YOU GET AN EXTRA
THOUSAND DOLLARS SO BUT IF YOU
MAKE A THOUSAND DOLLARS OF
INCOME DO YOU STILL GET A
THOUSAND DOLLAR.
CHECK FOR EVERY AND THEN IS IT
LIMITED TO THE NUMBER OF THIS --
ANY CHILD AND THE AGE OF AGE OF
SIX OF YOU HAVE TO MAKE A
HUNDRED DOLLARS OR TWO HUNDRED
DOLLARS YOU'LL GET A CHECK FOR A
THOUSAND DOLLARS.
THAT'S CORRECT IF YOU WORK IF
YOU'RE ASK SOMEONE WHO WORKS AND
EARNS ANY TYPE OF WAGE FOR THAT
YEAR YOU WOULD AND SEATS ON THE
FIRST DOLLARS SO IF YOU MAKE
FIFTY BUCKS -- YOU WILL GET A
CHECK FROM THE STATE OF
CALIFORNIA PAY NOTE STATE TAXES
YOU'LL GET A CHECK FOR A
THOUSAND DOLLARS THAT'S CORRECT.
THANK YOU MANAGER.
ANY ADDITIONAL QUESTIONS.
I'M OKAY SO IT'S MY
UNDERSTANDING OF THE ONE POINT
SIX BILLION WE'RE GONNA GENERATE
IN THE FIRST YEAR.
SO THE BULK OF THIS IS FROM
INDIVIDUAL BUSINESS OWNERS
CORRECT THROUGH THE LIMITS ON
NON CORPORATE BUSINESS LOSSES IS
THAT.
CORRECT THAT IS THE LARGEST
REVENUE RAISER OKAY SO THAT'S A
BIG CHUNK OF IT.
SO I THINK.
THE CONCERN THAT I HAVE AND I
THINK WE CAN ALL AGREE THAT WE
WANT TO EXPAND IDC AND THAT IT'S
A GOOD PROGRAM I THINK.
MY CONCERN IS THE PROFILE OF THE
TAX PAYERS THAN THAT ARE GOING
TO BE FUNDING US AND I'D LOVE
YOU TO HELP ME.
UNDERSTAND THAT BECAUSE I THINK
I HAVE A CONCERN THAT.
A LOT OF THESE FOLKS AREN'T YOU
KNOW CAN A NAMELESS BILLIONAIRES
AND AND YOU KNOW.
FACELESS CORPORATIONS MY CONCERN
IS THAT A LOT OF THEM ARE THE
SAME FOLKS THAT WERE ACTUALLY
HAD.
QUITE ADVERSELY BY THE TRUMP TAX
CHANGES.
AND THAT THEY WEREN'T THE PEOPLE
WHO ENJOYED A WINDFALL -- AND
THAT THIS WILL IN FACT BE KIND
OF A DOUBLE THE DOUBLE KNOCK FOR
THEM SO CAN YOU HELP ME
UNDERSTAND.
THAT LION SHARE THE INDIVIDUAL
BUSINESS CENTERS THAT ARE GONNA
BE.
PAYING THE LION'S SHARE OF THIS
INCREMENTAL REVENUE WHAT'S THE
PROFILE OF THOSE FOLKS.
YES WE CAN ADD A COUPLE FACTS --
THERE IN TERMS OF WHAT THAT
PERSON LOOKS LIKE I THINK THE
FIRST THING TO THINK ABOUT IS
THAT.
THE ACCESS BUSINESS LOSSES ARE
ONLY FOR LOSSES IN EXCESS OF
FIVE HUNDRED THOUSAND DOLLARS
THAT'S FOR A MARRIED COUPLE SO
ONE WAY TO LOOK AT IT IS THAT IF
YOU IF YOU'RE AND YOUR SPOUSE.
MAKE LESS THAN FIVE HUNDRED
THOUSAND DOLLARS IN A GIVEN YEAR
THAN THIS BILL WILL NOT AFFECT
YOU IN THAT YEAR YOU WOULD STILL
BE ABLE TO DEDUCT -- ANY
BUSINESS LOSSES AN OFFSET THAT
OTHER INCOME -- WITH REGARD TO
THE PEOPLE WHO DO MAKE MORE THAN
FIVE HUNDRED THOUSAND DOLLARS IN
A GIVEN YEAR -- WE'VE LOOKED AT
THE DATA AND THE BEST OUT OF
THAT WE HAVE I THINK FROM THE
YEAR TWENTY SIXTEEN SHOWS THAT
THIS PROVISION WOULD AFFECT
SOMEWHERE IN THE NEIGHBORHOOD OF
1-000-021-1000 TAXPAYERS.
AND THAT THE AVERAGE INCOME OF
THESE TAXPAYERS IS THREE POINT
FOUR MILLION DOLLARS.
ANY OTHER WEIGHT WHEN COULD LOVE
DO YOU HAVE DO YOU HAVE LIKE A A
CHART THAT WE CAN SEE THAT DOES
SO THE AVERAGE IS ONE THING BUT
YOU KNOW ONE PERSON EARNING A
HUNDRED MILLION DOLLARS
OBVIOUSLY LIKES USE THAT A LOT.
DO YOU HAVE THAT DISTRIBUTION IS
THAT THEY WOULD BE ABLE TO SEE.
WE DO NOT -- I HAVE NOT ASKED
FOR THAT IT IT MAY BE POSSIBLE
TO GET THAT I'M NOT SURE.
OKAY THANKS THAT WOULD BE
HELPFUL.
ANY OTHER COMMENTS OR QUESTIONS
FROM THE COMMITTEE.
I HAVE.
ONE SO -- TO MR MAYES POINT MY
QUESTION IS SO RIGHT NOW WE'RE
TALKING ABOUT WITH THE I. T. C.
AND WHAT THE CHILD CREDIT YOUR
PRIMARILY STE TALKING ABOUT
PEOPLE WHO TRADITIONALLY DON'T
ACTUALLY WE'RE ACTUALLY TRYING
TO ENCOURAGE A PILOT TAX RETURN.
SO THAT THEN THEY GET THE CREDIT
SO IN YOUR OPINION HOW OFTEN
WOULD YOU FIND SOMEBODY WHO
MAKES A HUNDRED DOLLARS WHO IS
GOING TO FILE FOR THE TAX CREDIT
FOR THE CREDIT FOR THE CHILD TAX
CREDIT.
BECAUSE YOU MUST HAVE CALCULATED
SOME ERROR OR SOME PORTION FOR
THAT.
YES A FOR THOSE INDIVIDUALS IT'S
AN ONGOING CHALLENGE TO GET
PEOPLE TO FILE FOR THE CREDIT SO
I THINK WE'RE ATTACKING THAT
ISSUE IN TWO WAYS ONE IS BY
MAKING THE MESSAGE MUCH SIMPLER --
IT'S EASIER TO GET THE MESSAGE
OUT THERE -- AND THEN THE SECOND
THING IS ACTUALLY INCREASING OUR
OUTREACH EFFORTS SO THE BUDGET
AGREEMENT ADOPTED BY THE
LEGISLATURE LAST WEEK INCLUDES
TEN MILLION DOLLARS SPECIFICALLY
FOR OUR REGION.
ACTUALLY THE ADMINISTRATION HAD
FIVE MILLION DOLLARS AND THEN
THROUGH NEGOTIATIONS THROUGH THE
CONFERENCE PROCESS THAT AMOUNT
WAS DOUBLE TO TEN MILLION
DOLLARS SO IT IS A CHALLENGE
BECAUSE WE KNOW THAT THRESHOLD
FOR FILING.
STATE TAXES IS DIFFERENT FROM
FEDERAL BUT WE'RE HOPING BUT
THAT MUCH SIMPLER MESSAGE IF YOU
HAVE A KID UNDER SIX YOU CAN GET
A THOUSAND DOLLARS IF YOU MAKE
LESS THAN THIRTY THOUSAND
DOLLARS A YEAR.
AND WITH ACTUAL MONEY TO MATCH
THE EFFORTS ON THE GROUND
INCLUDING MANY OF THE FOLKS HERE
CORRUGATION CANADIAN FOR TO GET
THE WORD OUT WE THINK WE COULD
REACH A LOT OF THAT POPULATION.
SO THEORETICALLY TRADITIONALLY
SOMEONE WHO MADE UNDER A
THOUSAND DOLLARS YOU ARE HAVING
TROUBLE GETTING THEM FILE AT ALL
SO THAT.
THE REALLY THE CHANCES SOMEONE
WHO MAKES A HUNDRED DOLLARS
WOULD NOT BE REALLY FILING FOR
THIS TO GET THEIR THOUSAND
DOLLARS.
CORRECT YES THANK YOU.
WE'RE GONNA FIRE OKAY COMING.
MET MADAM CHAIR IF I IF I CAN
ACTUALLY FEEL LIKE I SHOULD
SHARE THE STORY SO ACTUALLY WILL --
WHEN I DID PREPARE TAXES THIS
WAS -- IN THE EARLY TWO
THOUSANDS ONE MY FIRST YEARS --
MEMBER SOMEBODY SITTING IN FRONT
OF ME I'M ALSO THE STORY THE IN
BUDGET BUT I WASN'T COMPLETE SO
TELL THE COMPLETE STORY.
I STILL REMEMBER SITTING DOWN
AND THERE'S THIS -- INDIVIDUAL
THAT CAME AND SAT BEFORE ME SHE
SAID I'M A HAIRDRESSER.
AS A GREAT LAW SHOW ME YOUR
INITIATIVE FROM YOUR YOUR
FINANCIAL STATEMENTS SO SHE SO I
GOT IT WRITTEN DOWN A SAID OKAY
GREAT SO SHE WON'T CAñADA MEANS
THAT SHE'S.
FRONT OF ME AND I SAID OKAY WELL
WHAT'S YOUR INCOME SHE SAID WHAT
EIGHT THOUSAND DOLLARS.
AND SO I SAID OH EIGHT EIGHT
THOUSAND ARE THAT'S GREAT WHAT
YOUR EXPENSES WELL YOU KNOW I
WORK FROM MY HOUSE AND YOU KNOW
I BY BY SOME BY SOME SCISSORS
AND AND AND BUT YOU KNOW A
REALLY REALLY LOW AND JUST
WHAT'S WHAT'S MY REFUND.
WHAT'S YOUR REFUND SO COURSE
CONTROL TAB.
POPS UP AND SAYS -- IT'S FIFTEEN
HUNDRED DOLLARS WHATEVER THAT
THE NUMBER IS SHE SAID YOU KNOW
ACTUALLY I'M I'M NOT SURE I'M
NOT SURE I I I THINK MAYBE IT
WAS -- TEN THOUSAND DOLLARS
MAYBE IS TEN THOUSAND DOLLARS
WHAT'S.
A SAID OKAY SO IS TEN THOUSAND
DOLLARS OR PUT IN TEN THOUSAND
SHE CONTROL TAB IN.
AND THEN NOW SHE'S GETTING A
REFUND OF NINETEEN HUNDRED
DOLLARS SHE KNEW THAT THERE WAS
A SWEET SPOT IN WHICH HER SELF
EMPLOYMENT TAXES USE BUSES PAY
ON THE FEDERAL AND THAT THE
AMOUNT OF THE EARNED INCOME TAX
CREDIT.
WAS OVER AND ABOVE THAT SO THERE
ARE FOLKS THAT ARE SMART THEY
ARE FOR THEIR FOLKS WHO WILL
COME IN AND WILL.
GAME THE SYSTEM ONE OF THE
CONCERNS THAT I HAD WHEN WE
FIRST IMPLEMENTED THE COW AND I
AM A SUPPORTER.
OF THE EARNED INCOME TAX CREDIT
ONE OF THE CONCERNS THAT I HAD
WAS WHETHER IT WAS GOING TO A TO
INCLUDE ALL FILERS OR IF IT WAS
JUST GOING TO BE FOR EMPLOYEES.
HE YOU'LL RECEIVE A W. TWO WHEN
YOU GET THAT W. TO YOU ENTER
THAT W. -- TO INTO THE RETURN
AND YOU KNOW WHAT IT IS BUT
THERE WAS SOMEBODY ELSE THAT'S
HOLDING YOU ACCOUNTABLE AS SOON
AS YOU APPLY THIS TO ALL FILERS
WHICH I THINK IS WHERE WERE.
WE ARE CURRENTLY AT SO IF YOU
OWN YOUR OWN BUSINESS YOU'LL BE
ABLE TO TO GET THIS SO SOMEBODY
THAT DOESN'T HAVE ANY INCOME CAN
CLAIM INCOME NOW HERE'S THE ONE
THING.
THAT MOST PEOPLE DON'T REALIZE
IS THAT -- THE UNDER FEDERAL LAW
IT IS -- THAT YOU HAVE TO CLEAN
ALL OF YOUR INCOME.
BUT IF YOU CLAIM MORE THAN YOUR
YOUR INCOME HOW DO YOU PROVE --
THAT THAT SOMEBODY DIDN'T MAKE
IT THAT INCOME SO HOW TO I GUESS
MY QUESTION IS HOW DO WE MAKE
SURE THAT THERE ISN'T ANY.
ANY FRAUD OR HOW DO WE AT LEAST
LIMIT 
WHEN WE'RE TALKING BUT I GUESS
I'M CONCERNED ABOUT THAT FIRST
THAT FIRST DOLLAR.
YOU KNOW I'M I'M GONNA ASK FTV
SUPPOSED TO BE HERE.
FTV.
ALL MAY TWO BRIEF COMMENTS MAYBE
TAKING A LITTLE BIT ABOUT SOME
OF THESE ISSUES AND THEN
EFFECTIVELY.
TO WITHDRAW MANAGER I'M NOT SURE
GONNA BILL ANSYS TODAY IT'S FINE
IF YOU GUYS GET BACK TO ME IS
JUST A CONCERN BUT I I WISH I
COULD NOT THINK OF THE BEACON
PROBABLY ADDRESS.
THOSE CONCERNS.
YES SO I THINK YOU'RE RIGHT IN
IDENTIFYING THE TRADE OFF
THERE'S ALWAYS A BALANCE BETWEEN --
BUT ALSO GUARDING AGAINST ANY
POSSIBILITY OF FRAUD WHEN IT
COMES TO THE ITEMS IN THIS
SPECIFIC BILL I THINK THERE ARE --
TWO PLACES WHERE IT'S LESS OF A
CONCERN THAN IT OTHERWISE MIGHT
BE THE FIRST IS THE FACT AS YOU
POINTED OUT AT SOMEONE I'M
AMAZED AT THE FACT THAT THIS IS
A THOUSAND DOLLAR FRANK.
WHAT CREDIT MEANS THAT IT
DOESN'T ACTUALLY VERY WITH
INCOME -- SO THE TYPE OF
GAMESMANSHIP THAT YOU WERE
REFERRING -- TO WOULDN'T HAPPEN
SPECIFICALLY WITH THE THOUSAND
DOLLAR YOUNG CHILD TAX CREDIT
AND THEN I THINK THE SECOND
THING AND THIS IS -- JUST A
MATTER OF DEGREE -- BUT ONE OF
THE PROVISIONS IN THIS -- DALE
ETS AND THIS KIND OF GOES TO
WHAT YOU WERE DISCUSSING IN THE
CURRENT STATE -- EITC IT'S MUCH
MORE GENEROUS -- FOR PEOPLE WHO
MAKE BETWEEN A DOLLAR AND TEN
THOUSAND DOLLARS BUT IT IS FOR
PEOPLE WHO MAKE BETWEEN TEN
THOUSAND DOLLARS AND THIRTY
THOUSAND DOLLARS.
AND THAT IS AS IT SHOULD BE
BECAUSE ONE OF THE PURPOSES OF
THIS PROGRAM IS TO HELP THOSE
WHO ARE REALLY MAKING -- THE
LOWEST INCOME IN CALIFORNIA BUT
ONE OF THE THINGS WE DID IN THIS
BILL -- THROUGH NEGOTIATIONS AND
CONVERSATIONS WITH MEMBERS OF
THE LEGISLATURE IS INCREASED
BENEFITS AS WELL FOR PEOPLE WHO
MAKE BETWEEN TEN THOUSAND AND
THIRTY THOUSAND DOLLARS AND ALSO
EXTENDING IT OUT TO THIRTY
THOUSAND DOLLARS SO THAT.
IT'S A LITTLE BIT MORE FLATTENED
GENEROUS IN THOSE AREAS AND SO
REDUCES SOME OF THE INCENTIVES
THAT YOU WERE DISCUSSING.
WOULD YOU LIKE TO ANSWER THE
QUESTION.
I'M.
I'M SORRY MY FIRST TIME HERE
THAT'S OKAY JUST PULL THE MIKE
UP CLOSE TO YOU AND YOU DON'T
HAVE TO LOOK AT MR MEANS HE HE
CAN HEAR YOU.
OKAY I'M THE SIMILAR MEMBER IS
RIGHT THERE ARE SOME I THINK THE
TERM PEOPLEHAVE USED ARE BAD
ACTORS -- YOU KNOW WHO WOULD TRY
TO FIND THE SWEET SPOT OF THE
EXACT NUMBER OF CREDIT -- THE
DEPARTMENT HAS TRIED -- TO USE
SOPHISTICATED -- REVENUE
ANALYTICS AND PREDICTIVE MODELS --
SO THAT WE ARE GETTING BETTER AT
IDENTIFYING YOU KNOW -- CLAIMS
THAT WOULD WE WOULD CONSIDER TO
BE IMPROPER -- AND IF WE
IDENTIFY A CLAIM THAT'S AT THE
SWEET SPOT YOU KNOW MAYBE THREE
CHILDREN THE EXACT NUMBER OF
INCOME TO GET THE EXACT TWENTY
EIGHT HUNDRED DOLLAR MAXIMUM
CREDIT -- THEN WE DO TRY TO SEND
OUT A CORRESPONDENCE TO THE
TAXPAYER AND ASK FOR
VERIFICATION -- MAYBE THE
TAXPAYERS CLAIMING THREE
CHILDREN WE IT'S SOMETHING
DIFFERENT FROM A PRIOR YEAR WE
MIGHT ASK FOR BIRTH CERTIFICATES
ARE DIFFERENT THINGS.
BUT WE DO TRY TO WORK WITH --
THE TAXPAYER TO MAKE SURE THAT
THE CORRECT INDIVIDUAL IS
GETTING THE RIGHT AMOUNT OF
MONEY.
ON MAKE ONE OTHER POINT -- ON
THE SIMILAR TOPICS THE THOUSAND
DOLLAR CREDIT IT DOES APPLY WITH
THE FIRST DOLLAR OF INCOME BUT
IT DOES FACE OUT SO WE'RE NOT IN
A SITUATION WHERE IF YOU MAKE.
THIRTY THOUSAND DOLLARS IN THE
OF A CHILD UNDER SIX YOU GET A
THOUSAND DOLLAR CREDIT BUT IF
YOU MAKE A DOLLAR BEYOND THAT
YOU LOSE THE WHOLE CREDIT THERE
IS A BUILT IN FACE DOWN
MECHANISM FOR THAT.
ANY OTHER COMMENTS OR QUESTIONS
FROM THE COMMITTEE.
SEEING NONE I'M GOING TO I JUST
FIRST I THINK MR TING FOR
PRESENTING FOR ME YOU'VE DONE A
WONDERFUL JOB I WANT TO THINK
THE CO AUTHORS FOR AB -- TWO
SEVENTEEN THOSE THAT HAVE COME
IN TESTIFIED TODAY EVEN SOME OF
THE PEOPLE THAT TRADITIONALLY
AREN'T OF SOME OF OUR POVERTY
PARTNERS AND WHO HAVE BECOME
POVERTY PARTNERS LIKE THE
BUSINESS ROUNDTABLE REALLY
APPRECIATIVE AND THANKFUL FOR
THE REPORT YOU'VE DONE. TO ALSO
VERIFY THAT THE I. T. C. IS
INCREDIBLY IMPORTANT -- TO THE
RESIDENTS OF THE STATE OF
CALIFORNIA -- I ALSO LIKE TO SAY
THAT I UNDERSTAND THAT THERE ARE
YOU KNOW THAT THIS WE ACTUALLY
THAT THIS IS PRETTY GOOD BILL
YOU'VE RARELY DO WE COME UP WITH
TWO PEOPLE ON A BILL THAT THAT
OF THIS MAGNITUDE THAT.
THAT ARE IN OPPOSITION AND I DO
UNDERSTAND THAT YOU KNOW
HOPEFULLY THERE IS SOME MIDDLE
GROUND TO BE FOUND THERE.
HOWEVER -- I DO WANT TO SAY THIS
THERE ARE FIVE HUNDRED THOUSAND
CHILDREN LIVING IN THE STATE OF
CALIFORNIA IN DEEP CHILD POVERTY
THAT MEANS THAT THEY LIVE A
FAMILY OF FOUR UNDER THIRTEEN
THOUSAND DOLLARS A YEAR. TO ME
IF THERE IS A 2% OF THOSE PEOPLE.
WHO ACTUALLY TAKE THE CREDIT WHO
DID NOT DESERVE IT I'M OKAY WITH
THAT?
I CAN ACTUALLY LIVE WITH THAT
THOSE CHILDREN NEED THAT MONEY
AND THOSE FAMILIES NEED THAT
MONEY.
AND BY THE WAY NOT ALL I'M SORRY
THAT THERE ARE THOSE WHO HAD AN
INCIDENT WHERE.
PEOPLE WERE DISHONEST BUT THE
REALITY IS IS THAT ALL POOR
PEOPLE NOT DISHONEST.
THERE WERE THESE ARE WORKING
POOR WHO ARE STRUGGLING AND NEED
THIS HELP AND THEY HAVE EARNED
IT.
AND SO I THINK PHIL FOR HIS OR
OF ASSEMBLY MEMBER AND THE
ADMINISTRATION FOR THEIR
CONSTANT WORK ON THIS OVER THE
LAST FEW MONTHS I APPRECIATE YOU
ALLOWING ME MY COMMENTARY ON
THIS BILL -- AND WITH THAT.
WOULD YOU LIKE TO CLOSE.
I THINK THAT'S CLOSE.
IF I WERE YOU CALL THE ROLL.
THE MOTION IS TO PASS BURKE.
WORK I'D BRO.
BROWN NOT VOTING CHU.
CHU AYE GRAY.
GRAY AYE MAYES.
MAYES NOT VOTING MELINDA'S
[inaudible]
MULLIN [inaudible]
MULLIN I PETRIE-NORRIS.
PETRIE-NORRIS NOT VOTING QUIRK
AYE QUIRK AYE RIVAS.
RIVAS I TING TING ON FIVE SIX
SEVEN THE BILL IS OUT MOVING TO
FILE ITEM TO SB THREE FORTY NINE
A SENSE SENATOR PORTANTINO WOULD
YOU LIKE TO OPEN SEE HERE
[inaudible]
YEAH --
YOU KNOW -- YOUR FRIENDS
ARE GOING TO BE GONE NOW. 714-
WOULD YOU LIKE TO OPEN.
THANK YOU -- MADAM CHAIR AND
MEMBERS THANK YOU AGAIN FOR
PEOPLE AS YOU'RE LEAVING THE
ROOM IF WE COULD BE QUITE WE
STILL HAVE BUSINESS ON THE FILE.
THANK YOU MADAM CHAIR AND
MEMBERS SAID TODAY I AM
PRESENTING AN EASY BILL. FOR
YOUR CONSIDERATION SB -- THREE
FOUR NINE WHICH WOULD REDUCE THE
MINIMUM FRANCHISE TAX ON SMALL
BUSINESSES IN CALIFORNIA SMALL
BUSINESSES AS WE ALL KNOW ARE
THE BACKBONE OF A CALIFORNIA'S
GOING ECONOMY.
RESEARCH SHOWS THAT OVER THREE
MILLION OF CALIFORNIA SMALL
BUSINESSES ACCOUNT FOR
SIGNIFICANT -- NUMBER STATE
EMPLOYEE PLAYERS AND 45% OF
CALIFORNIA'S EXPORTS UNDER
CURRENT LAW THERE'S AN ANNUAL
MINIMUM MINIMUM FRANCHISE TAX OF
EIGHT HUNDRED DOLLARS ON EVERY
CORPORATION.
THIS TAX IS A ONE SIZE FITS ALL
STRUCTURE THAT -- MANY SMALL
BUSINESSES STRUGGLE TO AFFORD
STIFLES GROWTH GROWTH AND
OPPORTUNITY AND SIR SB THREE
FOUR NINE CREATES A FEE
STRUCTURE BASED ON A
CORPORATION'S ANNUAL GROSS
RECEIPTS THIS WILL HELP FOSTER
GROWTH OF A SMALL BUSINESS AND
ENCOURAGE ENTREPRENEURSHIP.
AND I'D LIKE TO ALSO ADD THAT WE
HAVE TAKEN THE AMENDMENTS ON
THIS BILL TO COMPLY WITH THE
REQUIREMENTS OF THE CHAIR AND
REVENUE AND TAX CODE SECTION.
FORTY ONE AND TO DEVELOP A FIVE
YEAR SUNSET PROVISION AND I HAVE
ROBIN BLACK.
ON BEHALF OF THE CALIFORNIA
SMALL BUSINESS ASSOCIATION TO
TESTIFY IN SUPPORT.
GOOD AFTERNOON MEMBERS -- THAT
MADAM CHAIR ROBIN BLACK -- I'D
LIKE TO THANK OUR AUTHOR FOR
BRINGING THIS IMPORTANT BILL
FORWARD -- WE'VE TRIED FOR
SEVERAL YEARS TO COME TO THIS
BODY AND ASK FOR A REDUCTION IN
THAT MINIMUM FRANCHISE TAX.
AND IT MAY NOT SOUND LIKE A LOT
OF MONEY TO A LOT OF FOLKS --
ESPECIALLY GIVEN THE
CONVERSATION THAT YOU JUST HAD
ON THE OTHER VALLEY KIND OF EVEN
FEEL GUILTY SITTING HERE.
BUT IT IS IT IS A BIG DEAL TO
SMALL BUSINESSES MANY SMALL
BUSINESS ARE WOMEN IN MY ORDER
MINORITY OWNED.
MANY OF THEM DON'T MAKE A PROFIT
FOR A NUMBER OF YEARS AND MANY
OF THEM ARE STRUGGLING -- TO
KEEP THEIR BUSINESS GOING AND
TRY TO EMPLOY PEOPLE -- IN SHOW
OF YOUR ANALYSIS MAKES A POINT
THAT I WANTED TO JUST REFERENCE
VERY QUICKLY -- VERY WISELY
MAKES A POINT AND I THINK THIS
IS WHAT REALLY IS AT THE HEART
OF THIS SPELL -- WHEN YOU DO
CONSIDER FOR A LOT OF FOLKS WHEN
THEY'RE NOT MAKING?
MONEY ON THEIR SMALL BUSINESS
THAT EIGHT HUNDRED DOLLARS IS
REALLY A BARRIER AND SO WHAT IT
FORCES THEM TO DO IN MANY CASES
IS JUST BE GOD CREATED A SOLE
PROPRIETORSHIP AS URINALYSIS
REFERS. TO IF YOU DO CREATE AS A
SOLE PROPRIETORSHIP AND YOU
DON'T HAVE TO PAY THE EIGHT
HUNDRED DOLLAR.
MINIMUM TAX THE PROBLEM WITH
THAT IS THAT YOU DON'T ENJOY ANY
THE PROTECTIONS OF BEING A
CORPORATION.
AND YOU ARE PERSONALLY LIABLE --
FOR THAT SMALL BUSINESS AS A
SOLE PROPRIETOR WE WOULD LIKE TO
SEE MORE -- SMALL BUSINESSES
ACTUALLY INCORPORATE AND BY
MAKING IT MORE AFFORDABLE TO DO
SO WE ALSO BELIEVE THAT YOU'LL
HAVE A LOT MORE SMALL BUSINESSES --
COME INTO FULL CORPORATION
PROTECTIONS AND BE PAYING
INSTEAD OF JUST 17% PAYING.
EIGHT HUNDRED YOU MAY HAVE. 80%
PAYING TWO FOUR SIX EIGHT
HUNDRED SELL -- FOR THOSE
REASONS WE'D LIKE TO ASK FOR
YOUR SUPPORT FOR THIS MEASURE.
THANK YOU TO SNOW IN ASSISTANCE
SUPPORT.
GOOD AFTERNOON CHAIR MEMBERS
JENNIFER TARA HILL WITH ERIN
READING ASSOCIATES ON BEHALF OF
THE CALIFORNIA SOCIETY OF
ENROLLED AGENTS.
IN SUPPORT AND THE SPONSOR
MENTIONED COME IT INCREASES
COMPLIANCE WHEN YOU MAKE THINGS
A LITTLE BIT SMOOTHER SO WE WERE
IN FULL SUPPORT OF THE OF
PRODUCING THAT.
THANK THANK YOU WITNESSES IN
OPPOSITION.
SEEING NONE -- COMMENTS AND
QUESTIONS FROM COMMITTEE.
SEEING NONE SENATOR WOULD YOU
LIKE TO CLOSE.
THANK YOU FOR THIS WONDERFUL
ANALYSIS I DO BILLS JUST SO I
CAN SEE MISTER RUFF AND YOUR
COMMITTEE WHO I HAVE A LONG
SWEET SPOT.
FOR AND SO THAT'S WHAT HITS ALL
HIS FAULT THAT I'M BACK IN THIS
CASE.
LISTEN YOU'RE THE FIRST PERSON
TO GIVE HIM PROPS.
TO AND WHEN IT'S APPROPRIATE FOR
A VOTE I WOULD RESPECTFULLY ASK
FOR AN AYE VOTE AND HOPE TO SEE
YU ALL AT SMALL BUSINESS DAY
WHICH IS WEDNESDAY RIGHT NEXT
WEDNESDAY ONCE FANTASTIC THANK
YOU.
THIS WEDNESDAY JUST.
ONE THANK YOU KNOW ABOUT RIGHT.
THE SILENCE FOR TESTIMONY ONLY
[inaudible]
THANKS.
CENTERS DONE. FIVE MILLION FILE
ITEM THREE SB THREE SIXTY FOUR
WOULD YOU LIKE TO OPEN.
THANK YOU MADAM CHAIR AND
MEMBERS I'M HAPPY TO PRESENT SB
THREE SIXTY FOUR THE PROBLEM IS
CURRENTLY PLAGUING CALIFORNIA'S
OR AMOUNT OF VETERANS WHO ARE
HOMELESS.
IN TWO THOUSAND EIGHTEEN
CALIFORNIA HAD TEN THOUSAND
EIGHT HUNDRED AND THIRTY SIX
HOMELESS VETERANS EQUITY TO
ALMOST 30% OF THE NATION'S TOTAL
HOMELESS VETERAN POPULATION.
VETERANS OF SACRIFICE SO MUCH
FOR OUR COUNTRY AND LOCAL IN
RETURN LOCAL STATE AND FEDERAL
GOVERNMENTS THE TO DO EVERYTHING
IN THEIR POWER TO HELP THEM
SUCCEED.
THERE'S NO SINGLE SOLUTION IS
GOING TO SOLVE THIS CRISIS
REASONS FOR THE LARGE NUMBERS OF
HOMELESS VETERANS ARE NUMEROUS
AND COMPLEX. TWO OF THE BIGGEST
FACTORS THOUGH ARE THE EXTREME
SHORTAGE OF AFFORDABLE HOUSING
AND LIVABLE INCOME.
SB THREE SIXTY FOUR CAMPS
ADDRESS THESE PROBLEMS OF
VETERANS FACED BY DOING THE
FOLLOWING.
SB THREE SIXTY FOUR FREEZES THE
ANNUAL PROPERTY TAX INFLATION
ADJUSTMENT FOR ALL HONORABLY
DISCHARGED VETERANS WHO ARE
SIXTY FIVE YEARS OR OLDER.
SB THREE SIXTY FOUR PROVIDES
BASIC STEP IN HELPING OUR
VETERAN COMMUNITY.
BY EXPANDING THE CURRENT
PROPERTY TAX EXEMPTION IN THE
CURRENT REACH A LAW CALIFORNIA
IS HONORING THE SACRIFICES OF
OUR VETERANS.
AND PROVIDING THEM A WAY TO STAY
IN THEIR HOMES SB THREE SIXTY
FOUR IS PASSED OFF THE SENATE
FLOOR.
AND OUT OF THE SENATE COMMITTEES
UNANIMOUSLY OF THAT I
RESPECTFULLY ASK HER ABOUT.
THANK YOU I WITNESSES IN SUPPORT.
WHEN THIS IS IN OPPOSITION?
QUITE TIME THAT APPROACH.
GOOD AFTERNOON CHAIR BURKE
GANDAK COMMITTEE MEMBERS AGAIN
MY NAME IS JESSE SALINAS FROM
THE YOLO COUNTY ASSESSOR.
RECORDED REGISTER VOTERS BUT I'M
HERE AS THE A COUNTY ASSESSOR
AND REPRESENTING THE CALIFORNIA
SISTERS ASSOCIATION.
SO -- FIRST ALLOW ME AYE WE'RE
HERE IN OPPOSITION OF SB THREE
SIXTY FOUR AND ALLOW ME TO FOR
SURE THAT.
THAT THE DISABLED AND EIGHT AND
A AGING VETERANS HAVE THE
SUPPORT AND RESPECT TO THE
CALIFORNIA SISTERS.
HOWEVER THE PRACTICAL
APPLICATION OF SB THREE SIXTY
FOUR IS PROBLEMATIC.
AS OUTLINED THE LEGISLATION
WOULD REQUIRE US TO MONITOR ALL
PROPERTIES OWNED BY VETERANS AND
TRACK THEIR ANNUAL INCOME AND H..
STARTING IN. TWENTY TWENTY TO
ACCOMPLISH THIS THE SENSORS WILL
NEED TO DO THE FOLLOWING NUMBER
ONE CREATE NEW REPORTING REFORMS
AND RECORDS KEEPING STANDARDS.
THAT IS THE UNIQUE TO THIS
POPULATION AND REQUESTS PERSONAL
DATA.
SAID PROPERTY OWNERS FRANKLY ARE
NOT ALWAYS EAGER TO SHARE.
SECONDLY THERE ISN'T A NEED TO
UPDATE OUR COMPUTER PROGRAMMING
SYSTEMS THROUGHOUT THE STATE AND
WE KNOW DOING ANYTHING STATEWIDE
RELATED TO COMPUTERS CAN BE A
CHAT.
CURRENTLY THERE ARE THIRTY ONE
COUNTIES USING THE SAME PROPERTY
TAX SYSTEM THE REMAINING TWENTY
SEVEN COUNTIES HAVE THEIR OWN
INDIVIDUALIZED SYSTEMS.
GIVEN THE COMPLEXITY OF THE
SYSTEMS AND THE INTERPLAY OF
SUCH INFORMATION WITH THE
OVERALL CLOSING OF THE ROLE.
ASKING TO COMPLETE THIS TYPE OF
CHANGE IN SUCH A SHORT TIME LINE
IS EXTREMELY DIFFICULT.
AND IS LIKELY TO HAVE
SUBSTANTIAL TECHNICAL AND
ADMINISTRATIVE COSTS ASSOCIATED
WITH IT GIVEN THE BROAD
VARIATIONS OF SYSTEMS THAT EXIST
THROUGHOUT THE STATE.
AS A VARIOUS WORKAROUNDS WILL
NEED TO BE DEVELOPED.
LASTLY.
IT WILL SET A PRECEDENT THAT
COULD OPEN THE DOOR TO OTHER
WILL INTENDED EFFORTS FOR OTHER
RESPECTED GROUPS WANTING SIMILAR
EXEMPTIONS.
IF WE SAY YES TO THIS PROPOSAL
WHO WILL BE THE NEXT GROUP
KNOCKING ON THE DOOR ASKING FOR
SUMMER EXEMPTIONS.
WE HAVE THE CALIFORNIA SUCH AS
ASSOCIATION I RESPECTFULLY ASK
THAT YOU HOLD THIS BILL -- TO
FOR MEDITATE THANK YOU.
THERE'S NO WITNESSES IN
OPPOSITION.
JEFF NEAL REPRESENTING THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES HERE RELUCTANTLY --
OPPOSING THE BILL FOR THE
REASONS OF THE ADMINISTRATIVE
COMPLEXITY OF SUSPENDING THE
INFLATION FACTORS NOT A WAY THAT
WE DO THIS FOR ANY OTHER.
ANY OTHER TAX EXEMPTION. ONE WHO --
EXPRESS OUR OPPOSITION
[inaudible]
THANK YOU.
COMMENTS AND QUESTIONS OF THE
COMMITTEE.
SEEING NONE WOULD YOU LIKE TO
CLOSE.
HAS BEEN I'M SURE THANK YOU AND
APPRECIATE THE OPPOSITION HAVING
BEEN A COUNTY SUPERVISOR AND THE
FOURTH LARGEST COUNTY IN THIS.
AND THE STATE AND THE TENTH
LARGEST COUNTY IN THE COUNTRY
I'M I'M WELL AWARE OF WHAT CAN
BE DONE WHAT CAN'T BE DONE THE
FREEDOM BY APPLICATION ONLY
THEY'RE NOT GONNA HAVE TO GO AND
PURGE ALL THE RECORDS SEE WHO
THE VETERANS THAT ARE IN GOOD
STANDING THE FALL.
WITHIN CERTAIN INCOME CATEGORIES
THEY HAVE TO FILE AN APPLICATION.
THE THE FISCAL COST OF THE STATE
OR TWENTY SEVEN MILLION DOLLARS
A STATEWIDE AND IT'S GONNA IT
WOULD AFFECT THREE HUNDRED
THIRTY THOUSAND FAMILIES IN THE
IN THE STATE OF CALIFORNIA I
THINK IT'S A VERY SMALL TOKEN OF
APPRECIATION OF WE CONTROL THEM
BY -- BY FREEZING THE PROPERTY
TAXES LET THESE ELDERLY --
VETERANS -- HAVE ONE THING
THAT'S VERY IMPORTANT TO THEM
THAT'S THE ABILITY TO STAY IN
THEIR HOMES.
AND THIS WOULD BE A GOOD STEP IN
THAT DIRECTION OF THOSE REASONS
I RESPECTFULLY ASK YOUR AYE VOTE.
THANK YOU THIS ITEM IS FOR A
TEST MONNING ONLY TODAY
[inaudible]
THANK YOU [inaudible]
SENATOR JONES.
WOULD YOU LIKE TO OPEN MOVING A
FILE ITEM FIVE SB.
SIX SIXTY THREE HER TESTIMONY ON
THANK YOU MADAM CHAIR AND
MEMBERS -- WANT TO START BY
THANKING THE COMMITTEE FOR
WORKING.
ON THE BILL -- TO MAKE IT BETTER --
SENATE BILL SIX SIXTY THREE
PROVIDES A PROPERTY TAX
EXEMPTION FOR PROPERTY OWNED BY
A VETERANS ORGANIZATION.
CURRENT LAW ALLOWS A WELFARE
EXEMPTION FOR PROPERTY TAXES FOR
NON PROFITS SUCH AS RELIGIOUS
ORGANIZATIONS.
HOSPITALS IN VETERANS
ORGANIZATIONS HOWEVER THIS
EXEMPTION ONLY APPLIES. TO
PORTIONS OF THE PROPERTY USED
EXCLUSIVELY FOR CHARITABLE
PURPOSES SUCH AS ROOMS USED FOR
COUNSELING SERVICES.
THIS BILL WILL EXTEND THE
PROPERTY TAX EXEMPTION TO ALL
PARTS OF THE PROPERTY EXCEPT FOR
THE ACTUAL BAR.
IF THE LOCATION HAS.
ONE SB SIX SIXTY THREE WILL
PROVIDE SUPPORT TO VETERANS
HALLS THAT ARE TRYING TO ENHANCE
THE SOCIAL WELFARE OF CURRENT
AND FORMER MILITARY PERSONNEL.
THIS IS A RE INTRODUCTION OF
ASSEMBLYMAN GRAZE BILL FROM LAST
SESSION.
AND I THINK THE GOOD ASSEMBLYMAN
FOR BEING A CO AUTHOR AND
WORKING WITH ME ON THIS YEAR'S
EDITION OF THE BILL.
AB TWELVE FORTY NINE LAST YEAR
PASSED UNANIMOUSLY OUT OF BOTH
HOUSES.
I EVEN EARNING A CINNAMON QUIRKS
VOTE LAST YEAR.
SO I'LL DO IT AGAIN -- BUT
UNFORTUNATE WAS VETOED BY
GOVERNOR BROWN AND THESE
VETERANS HALLS ARE VERY
IMPORTANT IN ALL OF OUR
DISTRICTS.
AND THEY WILL ENABLE US TO
BETTER SERVE THE VETERAN
POPULATION IF THEY CAN FULLY
UTILIZE THIS WELFARE EXEMPTION.
EVERY SET RESPECTFULLY ASK YOUR
AYE VOTE ON SB.
SIX SIXTY THREE WHEN IS ELIGIBLE
FOR A THANK YOU WHEN THIS IS IN
SUPPORT.
OKAY GOOD AFTERNOON I'M I WASN'T
SURE ABOUT YOUR TIMING IS YEAH
OKAY.
AGAIN JUSTICE SALINAS COUNTY.
COUNTY ASSESSORS ASSOCIATION AND
WE ARE IN SUPPORT WE BELIEVE
THIS LEGISLATION WILL HELP WITH
ADMINISTRATION OF ORGANIZATIONS
THAT PROVIDE -- VETERANS
EXEMPTION STEPS THANK YOU VERY
MUCH.
THANK YOU OKAY GREAT --
WITNESSES IN OPPOSITION.
SEEING NONE COMMENTS AND
QUESTIONS FROM THE COMMITTEE
TALKED QUIRK.
SO WE YOU TO THE COMMITTEE
DISCUSSED ADDING THE SUNSET AND
GETTING DATA WILL YOU BE DOING
THOSE THINGS MY UNDERSTANDING IS
WE ARTS IF THAT'S PART OF THE
MEMBERS WE ARE ACCEPTING THAT
THE COMMITMENTS YES.
YEAH ALTHOUGH FOR IT AGAIN THANK
YOU. EIGHT OUT WOULD YOU LIKE TO
CLOSE -- ANY OTHER COMMENTS OR
QUESTIONS FROM ME.
THANKS WOULD YOU LIKE TO CLOSE
SENATOR AT THE AYE.
MR COURT YEAH I'VE HEARD THINGS
UP FOR ME SO I'LL USE THAT AS MY
CLOTHES.
AND THE APPRECIATE YOUR AYE VOTE
WHEN THE TIME COMES THANK YOU
VERY MUCH THANK YOU [inaudible]
WORD EARNED