QUORUM THE TYLER WHICH LIKE
ROLE. BURKE HERE ROW CHIU
YOUR- GRAY LEVINE LEVINE LEVINE
EXCUSE ME ONE THE OTHER MEMBER.
MAYES TELLS. MAYES MELINDA'S
MULLIN PETRIE-NORRIS. QUIRK
RIVAS. WE HAVE A QUORUM START
BURKE IS OUT ILL TODAY AND WE
HAVE A NEW MEMBER-ASSEMBLYMEMBER LEVINE WHO AS
FOR BEING ASSEMBLY MEMBER TING
AS A PERMANENT MEMBER OF THE
COMMITTEE WITH THAT- THAT. I
WANT TO MOVE ITEM ONE JUST IN
THE INTEREST OF TIME SINCE
THAT'S THE ONLY VOTE. THAT WILL
BE TAKING TODAY IF I COULD.
BURGER THANK YOU. GREAT THIS
PATRIOT ASSEMBLY MEMBER ARE TO
ONE OF PRESENT ON IT OR YOU
WANT TO JUST TAKE AWHILE FOR. I
CAN I THINK THE DEBATE
CAPITATION EVERYONE SHE- YEAH.
IN AFTER SHE WAVING IT SO WITH
THAT MISS HOW IN CAN YOU CALL
THE ROLL ON. YOU KNOW IN CASE
IF ANYBODY WANTS TO. SPEAK IN
SUPPORT F FILE ITEM NUMBER ONE
AB TWENTY SIXTY EIGHT. YOU HAVE
TO THE MIKE WE HAVE ANY
TESTIMONY IN SUPPORT. IF YOU
JUST COME TO THIS MIKE. GOOD
AFTERNOON MADAM CHAIR MEMBERS
WHO SHALL MUCH LOWER ON BEHALF
THE CALIFORNIA STATE SHERIFFS
ASSOCIATION SUPPORT. RAINY
PERRY WITH THEIR ARENA SUCH
HITS ON BEHALF OF THE
CALIFORNIA ASSOCIATION HOW
PATROL AND POOR I CAN SUPPORT.
DOUG SUBER'S ON BEHALF OF THE
CALIFORNIA PROFESSIONAL
FIREFIGHTERS AND SUPPORT THANK
YOU. MAX WHAT WERE SOME OF THE
CONFERENCE THE FIREFIGHTERS
ASSOCIATION SUPPORT THANK YOU.
THEY WILL- THOSE WHO I SPEAK IN
OPPOSITION. BY ONCE GOING TWICE
SAYING NINE ASSEMBLYMEMBER
PETRIE-NORRIS ARE YOU ACCEPTING
THE COMMITTEE AMENDMENTS. YES
I'M HAPPY TO ACCEPT THE
COMMITTEE AMENDMENTS ARE MOVING
EXTENSION TO A SEVEN YEAR
EXTENSION THANK YOU THANK YOU.
THE WITH THAT WILL VOTE ON THE
BILL AS AMENDMENT AMENDED
TILING WE CALL THE ROLL. THE
MOTION IS TO PASS AS AMENDED TO
APPROPRIATIONS BURKE HI BRO. TO
GRAY. LIVING GREEN AYE MAYES
WHEN THIS MULLIN JUST OUTLINED
MULLIN. PETRIE-NORRIS NOR IS
AYE AYE QUIRK RIVAS RIVAS ARE.
THREE SIX SEVEN ZERO THAT BILL
IS OUT SEVEN ZERO A AND FOR THE
RECORD FILE ITEM THREE AB OF
NINETEEN FIFTY NINE HAS BEEN
PULLED BY THE AUTHOR. MOVING TO
FILE ITEM FOR A. B. NINETEEN
SIXTY TWO FOR TESTIMONY ONLY
ASSEMBLY MEMBER VOEPEL WOULD
YOU LIKE TO. CHAIRING
COLLEAGUES I'M HERE TO PRESENT
A. B. NINETEEN SIXTY TWO WHICH
PROVIDES A COMPLETE SALES AND
USE TAX EXEMPTION FOR BUILDING
MATERIALS AND SUPPLIES.
PURCHASED BY A QUALIFIED
PERSON. FOR CONSTRUCTION OF
SENIOR HOMES FROM JANUARY FIRST
TWO THOUSAND TWENTY ONE THROUGH
JANUARY FIRST. TWO THOUSAND
TWENTY SIX SO THIS WOULD BE A
FIVE YEAR PROGRAM SO WE COULD
EVALUATE ITS EFFECTIVENESS.
THIS QUALIFIED PERSONS INCLUDE
NON PROFITS AND CONTRACTORS
WORKING UNDER CONTRACTS WITH
THE NONPROFIT ORGANIZATION WHO
SPECIALIZES IN SENIOR HOUSING.
WITH THE SENIOR POPULATION
EXPECTED TO GROW BY NEARLY TWO
THIRDS IN THE NEXT TWO DECADES
THE MOST WORKERS I'M PREPARED
FOR RETIREMENT CALIFORNIA FACES
A MOUNTAIN RETIREMENT CRISIS.
WELL THE RETIREMENT CRISIS IS
NATIONAL IS COPE CALIFORNIA
SENIORS FACE EXORBITANT LIVING
COSTS WHILE THE STATE RANKS
NEAR THE BOTTOM AND WORKPLACE
ACCESS TO A PENSION OR A FOUR
ONE K. ACCORDING TO THE US
CENSUS. THE POPULATION OF
PERSONS SIXTY FIVE AND UP IS
ESTIMATED AT THIRTEEN POINT 1%
OF THE CALIFORNIA POPULATION.
MEANWHILE THE TWO THOUSAND
SEVENTEEN A RP SCOREBOARD.
RANKED CALIFORNIA NINETEENTH IN
THE COUNTY FOR AFFORDABILITY
AND ACCESS ADDITIONALLY THE
CURRENT HOUSING CRISIS IN
CALIFORNIA'S LEAD TO INCREASE
HOMELESSNESS AMONG THE SENIOR
POPULATION MOST OF THE SENIORS
ARE ON A FIXED INCOME IN WHICH
A RISE IN RENT HIT SENIORS MUCH
MORE THAN MANY OTHER
INDIVIDUALS. AB NINETY SIXTY
TWO WOULD INCENTIVIZE THE
BUILDING OF SENIOR HOUSING IN
AN EFFORT TO INCREASE
AVAILABILITY BY EFFECTIVELY
REDUCING THE TOTAL COST OF
CONSTRUCTION. AN INCREASE IN
SENIOR HOUSING WOULD HELP
MITIGATE THE UNFOLDING CRISIS
BY PROVIDING ACCOMMODATIONS FOR
AN AGING POPULATION AND
ENCOURAGE MORE SENIOR HOUSING.
I RESPECTFULLY ASK YOUR AYE
VOTE SOMEWHERE. ALONG THE LINE.
THANK YOU WITNESSES IN SUPPORT.
WITNESSES IN OPPOSITE- ARTISTS
ARE OU WITNESS IN OPPOSITION I
WOULD ASSUME I WITNESSES IN
OPPOSITION. SMITH THE COURT ON
BEHALF OF THE CALIFORNIA TAX
REFORM ASSOCIATION RESPECTFULLY
IN OPPOSITION TO THE MEASURE WE
BELIEVE THERE ARE AMPLE
OPPORTUNITIES- AND INCENTIVES
ALREADY EXISTING IN THE TAX
CODE- THAT SUPPORT THE BUILDING
OF SENIOR HOUSING- AND THAT
THIS IS A CONVERSATION MORE
APPROPRIATE TO BE HAD AS PART
OF THE BUDGET. I IN ADDRESSING
HOUSING BROADLY ACROSS THE
STATE THANK YOU. NOT. COMMENTS
AND QUESTIONS OF THE COMMITTEE.
SEEING NINE ASSEMBLY MEMBER
WILL TELL YOU LIKE CLOSE.
BASICALLY. THE SALES AND USE
TAX IS SEVEN POINT 25% IN
CALIFORNIA AND WE GUARANTEE
LOCAL JURISDICTIONS ONE POINT
25% AND IT CAN GO ALL THE WAY
UP TO TEN POINT 25% THAT ADDS
THAT CALL US DIRECTLY TO ANY
HOUSING AND IF WE'RE GOING TO
GET ANY KIND OF HANDLE ON LOW
INCOME HOUSING WE HAVE TO.
SUBSIDIZE IT OR GIVE THEM A TAX
BREAK AND WE'LL SEE HOW THIS
PLAYS OUT. THANK YOU FOR BEING
HERE AND YOU HAVE A GOOD DAY.
WHEN FILE ITEM SEVEN AB TWENTY
FIFTY EIGHT ZERO LIKE TO OPEN.
GOOD I WOULD SAY TO OPEN YEAH
THANK YOU MADAM CHAIR AND
MEMBERS I WANT TO START BY
THANKING THE CHAIR IN THE
COMMITTEE STAFF FOR THEIR
THOUGHTFUL FEEDBACK ON THISBILL. AND FOR ALL OF YOUR LONG
STANDING LEADERSHIP ON ISSUES
RELATED TO POVERTY AND
HOMELESSNESS YOU'VE BEEN A
LEADING VOICE IN THIS
CONVERSATION FOR A LONG TIME
AND WE LOOK FORWARD TO WORKING
WITH YOU ON THIS BILL AND ON
OTHER MEASURES IN THIS AREA.
AND I AM PLEASED TODAY TO
PRESENT AB TWENTY FIFTY EIGHT
ALONG WITH MY COLLEAGUE
ENJOYING AUTHOR ASSEMBLY MEMBER
MEMBER FRIEDMAN. THIS BILL
SEEKS TO HELP PREVENT
HOMELESSNESS BY PRESERVING TENS
OF THOUSANDS OF UNITS OF
AFFORDABLE HOUSING THAT ARE AT
RISK OF CONVERTING IT TO
UNAFFORDABLE MARKET RATE UNITS
IN THE NEAR FUTURE. WE'RE IN
THE MIDST OF AN ON PRESS. WAS
THIS CRISIS. AND THE DATA TELLS
US THAT ONE OF THE MOST
IMPORTANT STEPS THAT WE CAN
TAKE TO PREVENT HOMELESSNESS.
IS TO PREVENT FOLKS FROM
BECOMING HOMELESS IN THE FIRST
PLACE. ACCORDING TO LAST YEAR'S
HOMELESS COUNT LA COUNTY HOUSED
OVER TWENTY ONE THOUSAND
INDIVIDUALS. YET HOMELESSNESS
STILL INCREASED 212% COUNTY
WIDE. THE KEY IS FOR US TO STOP
MORE PEOPLE FROM SLIPPING INTO
HOMELESSNESS. UNFORTUNATE
ACCORDING TO RESEARCH FROM THE
CALIFORNIA HOUSING PARTNERSHIP
CALIFORNIA IS AT RISK OF LOSING
MORE THAN THIRTY THOUSAND UNITS
OF AFFORDABLE HOUSING. IN THE
NEXT FIVE YEARS. AS SUBSIDIES
INDEED RESTRICTIONS EXPIRE.
THAT MEANS A WITHOUT ACTION
TENS OF THOUSANDS OF
CALIFORNIANS WILL FACE THE
PROSPECT OF THEIR RENTS.
DOUBLING OR TRIPLING OVERNIGHT.
IT GOES WITHOUT SAYING THAT
THIS WOULD HAVE POTENTIALLY
CATASTROPHIC CONSEQUENCES FOR
HOMELESSNESS CRISIS. TO ADDRESS
THIS CHALLENGE AB TWENTY FIFTY
EIGHT CREATING NEW AFFORDABLE
HOUSING PRESERVATION TAX
CREDIT. THIS CREDIT WOULD ALLOW
MISSION DRIVEN NON PROFITS TO
PURCHASE AT RISK AFFORDABLE
HOUSING TO ENSURE THAT UNITS
CONTINUE TO REMAIN AFFORDABLE
FOR AT LEAST ANOTHER FIFTY FIVE
YEARS. UNDER THIS APPROACH WE
CAN PRESERVE AFFORDABLE UNITS
FOR APPROXIMATELY TWENTY
THOUSAND DOLLARS A UNIT. WHICH
IS FAR LESS THAN THE SIX OR
SEVEN HUNDRED THOUSAND IT CAN
SOMETIMES COST TO BUILD A NEW
UNIT OF AFFORDABLE HOUSING.
THIS FOCUSED MARKET DRIVEN
APPROACH HAS THE POTENTIAL TO
MOVE THE NEEDLE IN A MEANINGFUL
WAY. AND IS SUPPORTED BY A
BROAD BIPARTISAN COALITION OF
MORE THAN TWENTY CO AUTHORS IN
EQUALLY BROAD AND DIVERSE
COALITION OF STAKEHOLDERS.
INCLUDING LABOR BUSINESS
TENANTS ORGANIZATIONS LANDLORDS
LEGAL SERVICES PROVIDERS AND
HOME BUILDERS. WITH ME TODAY TO
TESTIFY ARE SIMPLY WOMAN
FRIEDMAN AND TWO LEADING
ADVOCATES MARK STIVERS FROM THE
CALIFORNIA HOUSING PARTNERSHIP
IN ON YOUR LAWLER FROM THE
WESTERN CENTER ON LAW AND
POVERTY. THANK YOU AGAIN FOR
THE OPPORTUNITY PRESENT THE
BILL AND RESPECTFULLY REQUEST
YOUR SUPPORT FOR AB TWENTY
FIFTY EIGHT WHEN IT COMES UP
FOR ABOUT. THANK YOU WELCOME
ASSEMBLYMEMBER FRIEDMAN WOULD
YOU LIKE TO. THANK YOU MADAM
CHAIR AND MEMBERS AFTER THE
OPPORTUNITY PRESENT ON THIS
CRITICAL BILL TO HELP PRESERVE
MUCH NEEDED AFFORDABLE HOUSING
A LOT OF THE PEOPLE WHO LIVE IN
OF WHAT'S CURRENTLY AFFORDABLE
HOUSING UNDER COVENANTS HAVE NO
IDEA THAT IN THE NEAR FUTURE
THEIR UNIT MIGHT BE CONVERTED
TO MARKET RATE. THESE ARE
PEOPLE THAT IN LOS ANGELES-
CERTAINLY AND I'M IN THE BAY
AREA AND LOTS OF OTHER PLACES
IN THE STATE WOULD HAVE NO
RESOURCES TO BE ABLE TO PAY
THAT HUGE INCREASE IN RENT THAT
THERE COULD BE EXPECTING AND TO
BE CLEAR. THOSE AFFORDABLE
UNITS ARE NOT UNDER THE STATE'S
RUN CAP NOR THE UNDER LOCAL
RENT CONTROL I JUST WANT TO BE
CLEAR ABOUT THAT SO THESE ARE
PEOPLE WHO REALLY CONSULTING
THE CRACKS AND WHO ARE A
SERIOUS RISK OF BECOMING
HOMELESS. THERE ARE TENS OF
THOUSANDS OF SUCH UNITS THAT
ARE GOING TO BE LEAVING THEIR
CONFIDENCE AND CONVERTED TO
MARKET RATE WITHIN THE NEXT FEW
YEARS ACCORDING TO THE
CALIFORNIA HOUSING PARTNERSHIP
PLEASE REPORT LA COUNTY ALONE
REPRESENTS 35% OF THESE AT RISK
HOMES. ARE COUNTY IS ALSO SEEN
THE LARGEST NUMBER OF HOMES
CONVERTED TO MARKET RATE SINCE
NINETEEN NINETY SEVEN. AND EACH
LOS HOUSING UNIT REPRESENTS
ANOTHER LOW INCOME FAMILY
WITHOUT AN AFFORDABLE HOME IN A
TIME OF INCREASINGLY HIGH RENTS
AND HOMELESSNESS WE JUST CANNOT
ALLOW THIS TREND TO CONTINUE-
OVER THE YEARS WE'VE PASSED A
STORAGE PROTECTION AND- AND-
PRODUCTION BILLS. BUT WHAT'S
REALLY IMPORTANT THAT WE DON'T
SKIP OVER THE IMPORTANCE OF
PRESERVING. THE AFFORDABLE
UNITS THAT WE HAVE RIGHT NOW. A
LOT OF MONEY AND TIME WHEN INTO
CREATING THOSE AND THIS IS A
WAY TO ALLOW THE MARKET. THAT
IF THE OWNER SO CHOOSE TO GIVE
THEM AN INCENTIVE FOR SELLING
THEIR UNITS A WHAT WOULD
OTHERWISE BE AVAILABLE TO THEM
A LOT OF THESE OWNERS WANT TO
DO THE RIGHT THING. BUT WE JUST
HAVEN'T PUT THEM IN A FINANCIAL
POSITION WERE DOING SO IT'S
POSSIBLE THIS OPENS UP THAT
DOOR. TO HUMANE OWNERS TO
HAVING SOME CHANCE OF BEING
ABLE TO- DO DEAL WITH THE ASSET
THAT WOULD THEY'VE EXPECTED TO
CONVERT TO MARKET RATE. GIVEN
THE CHANCE OF PRESERVING THOSE
TENANTS IN PLACE. WITHOUT I
RESPECTFULLY WOULD REQUEST YOUR
SUPPORT ON AB TWENTY FIFTY
EIGHT THANK YOU. THINK YOU'RE
ADDITIONAL IN AS A SUPPORT.
GOOD ACTORS. I KNOW OUR BEHALF
OF WESTERN CINEMA POVERTY- AS
BOTH AUTHORS HAVE HIGHLIGHTED
WE HAVE A LOOMING CRISIS OF
EXPIRING DEED RESTRICTIONS BUT
I WANT TO TALK ABOUT A
SECONDARY CRISIS THAT THIS BILL
WOULD ALSO HELP ADDRESS WHICH
IS THAT. THE VAST MAJORITY OF
LOW INCOME CALIFORNIANS DON'T
LIVE IN A DEED RESTRICTED UNIT
AND THEY DON'T HAVE THE BENEFIT
OF A HOUSING CHOICE VOUCHER
BECAUSE THEY ARE IN WILLFUL
UNDERSUPPLY MOST LOW INCOME
PEOPLE LIVE IN MARKET RATE
HOUSING. THEY SIMPLY LIVE IN
THE MOST AFFORDABLE MARKET RATE
HOUSING THAT THEY CAN FIND- AND
AS WE KNOW WE HAVE RAPIDLY
ESCALATING RENTS IN THE STATE-
AND AS THOSE AROUND CONTINUE GO
OUT MORE AND MORE LOW INCOME
FAMILIES ARE GETTING PRICED OUT
OF EVEN THEIR MARKET RATE
UNITS. THIS BILL WILL ENABLE A
MISSION DRIVEN NONPROFIT TO GO
AND- IF THERE IS AN OPPORTUNITY
AND PURCHASE A MARKET RATE
BUILDING THAT IS OCCUPIED
PREDOMINATELY BY LOW INCOME
PEOPLE AND ACTUALLY TURN IT
INTO THE RESTRICTED HOUSING FOR
FIFTY FIVE YEARS. WHICH IS A
HUGE OPPORTUNITY TO EXPAND OUR
SUPPLY OF AFFORDABLE HOUSING-
IN A MUCH MORE COST EFFECTIVE
WAY THAN THE NEW CONSTRUCTION
SO WE'RE CURRENTLY SHORT ABOUT
ONE POINT FIVE MILLION UNITS
STATEWIDE AFFORDABLE TO LOWER
INCOME HOUSEHOLDS SO IN
ADDITION TO PRESERVING THE FACT
THAT WE ALREADY HAVE WE REALLY
NEED TO INCREASE THAT SUPPLY
THIS IS A CREATIVE WAY TO GET
OUT THAT AND- HOPEFULLY. A THE
BILLS ON WE CAN OUT THE REAL TO
OF THE CHAIR HAS RAISED AND
LOOK FOR YOUR AYE VOTE OF.
OTHER EXCHANGE. MARCH AS- FOR
THE CALIFORNIA HOUSING
PARTNERSHIP IN TODAY ALSO ON
BEHALF OF THE NONPROFIT HOUSING
ASSOCIATION IN NORTHERN
CALIFORNIA- AND PARENTHETICALLY
I WAS THE- PREVIOUS ADDRESS
EXECUTIVE DIRECTOR OF THE TAX
CUT ALLOCATION COMMITTEE TO
WHICH THIS BILL WILL BE
ASSIGNED- THE CALIFORNIA
HOUSING PARTNERSHIP WAS CREATED
ACTUALLY BY THE LEGISLATURE
OVER THIRTY YEARS AGO TO. BE
YOUR ADVISER ON HOW TO PRESERVE
THESE AFFORDABLE HOUSING UNITS
THAT ARE UNDER A DEED
RESTRICTION BUT THAT- EIGHT
COMING NEAR TO THE TIME WHEN
THOSE CONTRACTS EXPIRE. AND
THIS IS A BILL THAT WE FEEL IS
CRITICAL TO THAT EFFORT. LIKE
ON YOUR WE ALSO ARE VERY
SUPPORT OF THE OF THE- PROSPECT
OF BEING ABLE TO USE THESE
CREDITS TO PURCHASE THE
EXISTING MARKET RATE- UNITS AND
KEEP THEM AFFORDABLE OVER TIME.
BRING US ACTUALLY BRING THEM
INTO THE AFFORDABLE HOUSING-
REALM- THERE ARE A LOT OF
OPPORTUNITIES IN THAT. IN THAT
IN THAT SPHERE AND WE THINK
THAT THAT WOULD BE AN IMPORTANT
ASPECT TO MAINTAIN IN THE BILL.
AND THEN JUST TO KIND OF GET TO
THE LITTLE BIT OF SORT OF WATCH
THIS BILL HOW THIS BILL HELPS.
RIGHT NOW IN OUR- HOUSING
DEVELOPERS GO OUT INTO MARKET
PLACE TO PURCHASE THESE
PROPERTIES. THEY'RE COMPETING
AGAINST REAL ESTATE INVESTMENT
TRUST THEIR COMPETING AGAINST.
BUYERS ONE. TO DO WANT TO
CONVERT THEM TO MARKET RATE.
AND YET OFF. THE FOR DEVELOPER
HAVE A HEART COMPETING. AND SO
THE IDEA OF THIS TAX CREDIT IS
WE GIVE THESE SELLERS AN
INCENTIVE. TO WORK WITH THE
AFFORDABLE BUYERS. AND TO
PRESERVE THE UNITS. THE SELLER
HAS AN INTEREST IN CAPTURING
SOME CAPITAL GAINS. THAT IF WE
CAN KIND OF. MAKE THEM WHOLE
FOR THEIR CAPITAL GAINS TAXES
THEY WILL WANT TO SELL TO OUR
AFFORDABLE HOUSING PICTURES AS
OPPOSED. TO ALL THE OTHER
COMPETITORS IN THE MARKETPLACE.
NOW ABA GET ACT. TO THESE
PROPERTIES KEEP THEM FOR AGAIN
AS WE SAID ANOTHER FIFTY FIVE
YEARS. BEFORE THAT'S A CRITICAL
STRATEGY TO PRESERVATION- IN
CALIFORNIA THANK YOU. RIGHT
STOP AFTER THE CAL. COLLEGE FOR
RURAL HOUSING PLEASE CIRCA
SPONSOR THE SPELL. VERSION I
VOTED DEPARTMENT. THANK YOU
ADDITIONAL IN SUPPORT. CAN
REALLY ROSENBERGER WITH SERVICE
EMPLOYEES INTERNATIONAL UNION
BOTH AS A UNION THAT'S PROBABLY
AYE ON THE FRONT LINES OF
SERVICE PROVIDERS AND COMBINING
COMBATING HOMELESSNESS IN A
UNION THAT REPRESENTS A LARGE
NUMBER OF TENANTS WE THINK THIS
UNNECESSARY TOP CAP AND ARE
PROUD TO SUPPORT. TO IMPROVE
THE A CALIFORNIA APARTMENT
SOCIALLY FROM HERE IN STRONG
SUPPORT AS WELL. GOOD AFTERNOON
KIANA VALENTINE ON BEHALF OF
THE URBAN COUNTIES OF
CALIFORNIA AND SUPPORT. REBECCA
MARKETS REPRESENTING LEADING
AGE CALIFORNIANS SUPPORT.
AFTERNOON CHEN MEMBER SUSAN MAN
NOT HERE ON BEHALF OF
CALIFORNIA UNION SUPPORT ALSO
HERE ON BEHALF OF HABITAT FOR
HUMANITY CALIFORNIA WE'VE
SUPPORTED COMMENDED POSITION
REQUESTING THAT HOMEOWNERSHIP
OPPORTUNITIES BE INCLUDED IN
THIS BILL IN ADDITION TO RENTAL
HABITAT BUILDS NATURALLY DEED
RESTRICTED AFFORDABLE HOUSING
AND THOSE DEED RESTRICTIONS ARE
IN PERPETUITY AS NEW HOMEOWNERS
COME IN WE'D REALLY LIKE TO-
INSURE THAT HOMEOWNERSHIP IS
INCLUDED WE ALSO DO. REHAB AND
REPAIR- OVER THE LAST TEN YEARS
RESEARCH SERVED FORTY SIX
HUNDRED FAMILIES AND 63% OF
THAT HAS BEEN RE HAVE BEEN
REPAIRED WE WANT TO MAKE SURE
THAT WE'RE ABLE TO KEEP THOSE
UNITS AFFORDABLE. THANK YOU.
ENGINE THE CALIFORNIA BUILDING
INDUSTRY ASSOCIATION IN SUPPORT
THANK YOU. BRING A WHITE WITH
THE CALIFORNIA HOUSING
CONSORTIUM IN SUPPORT. SMITH
THE CORE BUT THE CALL FOR A TAX
REFORM ASSOCIATION WE HAVE NO
POSITION AT THIS TIME WE'RE
STILL WATCHING THE MEASURE
SOMETIMES THAT'S- I GET AS-
YOU'RE GOING TO. SEE IF THE
WORK THAT YOU'RE DOING AND LOOK
FORWARD TO HAVING CONVERSATIONS
ABOUT HOUSING BROADLY- AND TO
MAKE SURE THAT WE'RE NOT
ROBBING PETER TO PAY PAUL BUT
THANK YOU FOR ALL YOUR
THOUGHTFUL WORK. THANK YOU
WITNESSES IN OPPOSITION. SEEING
AND HEARING THEN COMMENTS AND
QUESTIONS FROM THE COMMITTEE.
SEC THANK YOU FOR PROVIDING
THIS FORWARD IT'S SUCH A
CRITICAL ISSUE AND I THINK THE
DEPARTURE TAKING IS I'M A SPOT
ON IN TERMS OF INCENTIVIZING
INCENTIVIZING PEOPLE TO DO THE
RIGHT THING. I'M QUESTION I
HAVE STEMS FROM THE COMMITTEE
ANALYSIS WHERE THEY NOTE THAT
I'M- THIS PROGRAM IS PRETTY
LIKELY TO BE OVERSUBSCRIBED ARE
YOU. OPEN ARE YOU INVESTIGATING
PRIORITIZATION CRITERIA TO
ADDRESS THE CONCERNS RAISED IN
THE COMMITTEE ANALYSIS. YEAH
WE'VE HAD SOME SOME REALLY
GREAT CONVERSATIONS WITH THE
COMMITTEE STAFF WITH THE CHAIR
AND I APPRECIATE THE THOUGHTFUL
FEEDBACK AND DEFINITION WHAT
THEY'RE TRYING TO GET OUT AND
WE'RE GONNA CONTINUE THIS
CONVERSATION. THANK YOU VERY
MUCH. ANY OTHER COMMENTS OR
QUESTIONS THE COMMITTEE. SEEING
NONE I JUST WANT TO THANK YOU
WE HAVE HAD SOME GOOD
CONVERSATIONS OBVIOUSLY WE DO
WANT TO MAKE SURE THAT T. CáC
LOOKS AT. PRIOR AT WHAT
ACTUALLY PRIORITIZE IS OF A
BUILD A BUILDING THAT WOULD
ACTUALLY. BUT SUFFICE. THE
WEATHER THAT SOMETHING THAT
COMES UP IN THE NEXT THREE
YEARS AT THE UNITS WILL THEN
BE- EXPIRED OR PRIORITIZING HOW
MANY NUMBER OF UNITS ARE IN
THAT- BUILDING OR FACILITY I
THINK THAT THOSE ARE SOME
THINGS WE LIKE THIS CONTINUE TO
DISCUSS BUT I'M- THANKFUL THAT
YOU ARE WILLING TO HAVE A
CONVERSATION AND I THINK PEOPLE
FOR BRINGING THIS BILL IT'S- A
GREAT OPPORTUNITY TO SEE SOME
REALLY GOOD PREVENTION ACTUALLY
IN THE STATE OF CALIFORNIA SO
THANK YOU FOR. TACKLING THIS I
KNOW IT'S DIFFICULT AND WE WILL
GET THERE I BELIEVE SO. I WITH
THAT WOULD YOU LIKE TO CLOSE.
YEAH JUST- I APPRECIATE ALL THE
THOUGHTFUL FEEDBACK AND-
RESPECTFULLY REQUEST AN AYE
VOTE THANK YOU VERY MUCH. THIS
IS ITEMS FOR TESTIMONY ONLY BUT
WE WILL TAKE BUT WHEN THE TIME
IS APPROPRIATE. CAN WE CALL THE
ABSENTEE. FILE ITEM ONE AB TWO
TWENTY SIXTY EIGHT. GRAY MAYES
MAYES I MULLIN. ALL RIGHT
MOVING A FILE ITEM SIX AB
TWENTY THIRTEEN. MADAM CHAIR
AND COMMITTEE MEMBERS I'M HERE
TO PRESENT AB TWENTY THIRTEEN
WHICH WILL HELP VICTIMS OF
WILDFIRES AND OTHER DISASTERS
GET BACK ON THEIR FEET UNDER
CURRENT LAW SOMEONE WHO LOSES
THEIR HOME OR BUSINESS AND A
DISASTER CAN TRANSFER UP TO A
HUNDRED AND 20% OF THEIR
PROPERTY TAX LIABILITY TO A NEW
PROPERTY SOMEWHERE ELSE IN THE
COUNTY. THIS HELPS VICTIMS
BUILD AND FIND REPLACEMENT
PROPERTY WITH ENERGY EFFICIENCY
OR OTHER IMPROVEMENTS WITHOUT
CAUSING A SPIKE IN THEIR
PROPERTY TAX OBLIGATION AB
TWENTY THIRTEEN EXTENDS THIS
EXISTING PROTECTION TO VICTIMS
OF DISASTERS WHO REBUILD ON THE
EXACT SITE OF THE DESTROYED
PROPERTY. THIS BILL IS
SUBSTANTIALLY SIMILAR TO AB
EIGHT EIGHTY FIVE- OF LAST YEAR
WHICH HAD NO NO VOTES I WOULD
LIKE TO THANK THE COMMITTEE
STEP AND THE ASSESSORS
ASSOCIATION FOR CONTINUING TO
WORK WITH OUR OFFICE IN THIS
IMPORTANT ISSUE AND ADDRESSING
THE GOVERNOR'S VETO. ARE YOU
CAN DO ARE YOU TO ANSWERING.
SEVEN MADAM CHAIR MEMBERS
CAPTAIN ROB GROWS CLOSER WITH
THE CALIFORNIA SISTERS
ASSOCIATION LIKE TO FIRST THANK
THE SOMEONE FOR CONTINUED
CHAMPION THIS ISSUE AND THINK
YOU'RE COMMITTEE FOR ITS
CONSIDERATION FOR US IT'S A
FAIRNESS IN EQUALIZATION ISSUE-
AS OUR SISTERS WERE IN THE
COMMUNITIES AFTER DISASTERS
INCLUDING THE MATURE ASSESSOR-
WHEN FOLKS HAVE THEIR HOMES
DESTROYED BY CALAMITY. AND THE
TAX STRUCTURE SUGGESTED THEY
CAN MOVE SOMEWHERE ELSE IN THE
COUNTY OR EVEN OUT OF THE
COUNTY WITH A VERY CLEARLY
DEFINED- SORT OF FLEXIBILITY
BUT TO REBUILD ON THAT SITE
ITSELF THAT'S NOT THERE- WE
THINK THAT IS NOT A VERY FAIR
EQUAL- WHEN IT COMES TO
INSURING THAT FOLKS THAT. NEED
TO REBUILD HOMES HAVE THAT
TREATMENT WE ARE SO CLOSE LAST
YEAR AND LOOK FORWARD TO SORT
OF IRONING OUT THINGS THAT
SHARING GETTING CROSSED THE
FINISH LINE THANK YOU HAVE
ANSWERED A QUESTION HAVE THANK
YOU IT IS WHEN THIS ISN'T. THE
A CALIFORNIA. SO SHE SHE HEARS.
WE LESS. A BILL IN TEAM SPORT
DISHES. THANK. WITNESSES IN
OPPOSITION SEEING NINE COMMENTS
AND QUESTIONS OF THE COMMITTEE.
SEE NOW WOULD YOU LIKE CLOSE
BROUGH SPECTRALLY ASKED HER
SUPPORT. WHEN THE TIME IS RIGHT.
THANK ITEM FOUR AB NINETEEN
SEVENTY EIGHT OH NO. THE ONLY
FILE ITEM EIGHT ASSEMBLYMEMBER
MOM WOULD YOU LIKE TO PRESENT
YOUR BILL. I REALLY BELIEVE
YEAH. THANK YOU MADAM CHAIR
MEMBERS. ONE START BY THANKING
YOU AND YOUR STAFF FOR WORKING
WITH MY OFFICE ON THIS
IMPORTANT MEASURE AND COMMITTED
TO WORKING WITH YOU AND YOUR
STAFF ON AMENDMENTS THAT WILL
SATISFY THE COMMITTEES TAX
EXPENDITURE POLICY. AB TWENTY
SIXTY THREE IS VIRTUALLY
IDENTICAL TO A MEASURE THIS
COMMITTEE SUPPORTED WITH
UNANIMOUS SUPPORT LAST YEAR IT
WILL AID NON PROFITS AND
RELIGIOUS ORGANIZATIONS THAT
PROVIDE AFFORDABLE HOUSING.
THANK SPENDING THE PROPERTY TAX
EXEMPTION TO ONE HUNDRED
MILLION AN ASSESSED PROPERTY
ANNUALLY. SPECIFICALLY IT WILL
HELP A VERY DESERVING CHARITY
FROM DAY ONE WHICH IS IN MY
DISTRICT. NONPROFITS THAT DO
NOT RECEIVE ANY TAX CREDITS FOR
LOANS FROM THE STATE OR FEDERAL
GOVERNMENT AND PROVIDE
AFFORDABLE HOUSING LOW INCOME
FAMILIES. HAVE A CAP PLACED ON
THE AMOUNT OF PROPERTY TAX THAT
MAY BE ACCEPTED ANNUALLY.
AFFORDABLE HOUSING PROVIDERS
THAT DO YOU RECEIVE TAX CREDITS
HAVE NO LIMIT ON THE AMOUNT OF
PROPERTY TAXES THAT CAN BE
EXEMPTED AND NO MINIMUM
PERCENTAGE REQUIRED OF TENANTS
WHO ARE LOW INCOME. IN ORDER TO
RECEIVE A PRO RATED PORTION OF
THEIR PROPERTY TAXES ACCEPTED.
AT THE REQUEST OF THE SAN MATEO
COUNTY ASSESSOR'S OFFICE WE
LOWERED THE THRESHOLD FOR A
NONPROFIT. TO RECEIVE A
PROPERTY TAX BENEFIT IN THE
BILL THE SAINT FRANCIS CENTER.
IN MY DISTRICT RECENTLY WAS
ABLE TO ACQUIRE FORTY EIGHT
UNIT. APARTMENT COMPLEX ALL
WITH PRIVATE DONATIONS AT A
COST OF TWENTY TWO POINT FIVE
MILLION DOLLARS. THE BUILDING
HAD EXISTING TENANTS AND
BECAUSE OF HOW TIGHT AND
EXPENSE OF THE BAY AREA RENTAL
MARKET IS. THEY DIDN'T WANT TO
IMMEDIATELY AFFECTS ALL OF THE
TENANTS THAT WE'RE NOT LOW
INCOME. AND THEY PAY THE PRICE.
THE TAX BILL OF TWO HUNDRED
FIFTY THOUSAND DOLLARS FROM THE
COUNTY. THE COUNTY ASSESSOR'S
OFFICE REQUESTED THAT THE ST
FRANCIS AT OUR OTHER SIMILARLY
SITUATED CHIU. GET A RATED POOR.
OF THEIR PROPERTY TAXES
EXEMPTED AS LONG AS THEY HAVE
AT LEAST 50% LOW INCOME TENANTS
AND I AGREE WITH THAT. IT'S
ONLY MAKES THIS I DON'T
ENCOURAGE MORE. AND ALL REPEAT
X. TIGHT AND NANA. FOR MANY
HOUSING MARKET IN THE BAY AREA.
THIS PROVISION AS A TEN YEAR
SUNSET TO MAKE SURE THERE ARE
NO ABUSES. AND WITH THAT THANK
YOU ASKED FOR AN AYE VOTE AT
THE APPROPRIATE TIME AND I HAVE
A WITNESS IN SUPPORT. MADAM
CHAIR MEMBERS JOE CRUISE ON
BEHALF OF THE COUNTY SAN
MATTEO. SMX COMMITMENT HAS
CONTINUED EXPERIENCE ON
PRESIDENT MAN FOR HOUSING. THE
SOME OF THE HIGH HOUSING THIS
IS IN THE ENTRY. THE HELP. IS
IN OUR AREA IS MORE IMPORTANT
EVER TO PRESERVE AND ASSIST THE
EFFORTS OF NONPROFITS LIKE
SAINT FRANCIS ENTERED REDWOOD
CITY. WHICH PROVIDES NON
PUBLICLY FINANCED AFFORDABLE
HOUSING TO EXTREMELY ROLE LOW
RESIDENTS LOW INCOME RESIDENTS
DESPITE RECENT ATTEMPTS TO
INCREASE THE CAP AND KEEP UP
WITH THE INCREASING PROPERTY
VALUES THE CURRENT PROPERTY
EXEMPTION CAP LIMITS THE
ABILITY OF THESE TYPE OF
NONPROFITS TO PROVIDE MORE
AFFORDABLE HOUSING. THE CURRENT
90% LOW INCOME TENNESSEE
REQUIREMENT LIMITS CHARITIES
LIKE SAYING FRANCIS WITH A FEW
MODERATE LOW INCOME TENANTS IN
THE BUILDING FROM BENEFITING
FROM THE EXISTING TWENTY
MILLION DOLLAR PROPERTY TAX
EXEMPTION. LAURIE THE REQUIRED
PERCENTAGE FOR LIKE CONTENTS IN
PRO RATING THE EXEMPTION WOULD
ALLEVIATE DISPLACEMENT THEY CAN
RESULT WHEN I CHARITY PRODUCES
A BUILDING WITH EXISTING
TENANTS. AS WAS RECENTLY K. THE
CASE WITH ST FRANCIS CENTER AND
ALLOWS IN THE USE THESE FUNDS
TO HELP MORE FAMILIES SECURE
AFFORDABLE HOUSING FOR THESE
REASONS WE SUPPORT TWENTY SIX
TWENTY SIXTY THREE. APPRECIATE
THE WORK OF THE AUTHOR AND LOOK
FOR TO A MEETING WITH STAFF AND
IT WAS BILL COME BEFORE THE
COMMITTEE FOR A VOTE. YOUR NO
WITNESSES IN SUPPORT. I'M SURE
MEMBERS RAND MORE NOW BEHALF OF
THE AIDS HEALTHCARE FOUNDATION
AND IS HEALTHY HOUSING
FOUNDATION- I APOLOGIZE FOR NOT
GETTING OUT A LETTER AND BEFORE
THE COMMITTEE HEARING I DO-WANNA POINT OUT THAT AGE UP
CURRENTLY OPERATES SEVEN
HUNDRED NINETY ONE UNITS OF LOW
INCOME HOUSING. ACROSS THE CITY
OF LOS ANGELES- WE WOULD LIKE
TO TAKE ADVANTAGE OF THIS-
INCREASE PROPERTY TAX EXEMPTION
WE'RE NOT USING ANY PUBLIC
FUNDS AT ALL. IT'S ALL
PRIVATELY RAISED FUNDS THAT ARE
USED FOR THESE PURPOSES. WE
THINK THAT WERE ASSISTING THE
CITY OF LOS ANGELES IN TH
STATE OF CALIFORNIA IN DEALING
WITH THE- HOUSING CRISIS AND WE
THINK THE PROPERTY TAX
EXEMPTION TO HELP US DO THAT.
TONY WITH THE A CALIFORNIA
APARTMENT SO SHE AND HER
SUPPORT AS WELL THANKS. THE
CURRENT CALIFORNIA TAX REFORM
ASSOCIATION SIMILAR TO MR
GABRIEL'S BILL WERE STILL A
WATCH ON THIS MEASURES WE
CONSIDER HOUSING BILLS AS A
UNIT THANK YOU YOU GRANT. OF
WITNESSES IN OPPOSITION. SEEING
NONE COMMENTS AND QUESTIONS
FROM THE COMMITTEE. IT'S A
QUIET WHEN DOCTORS QUIRKS NOT
HERE. WOULD YOU LIKE TO CLOSE.
RESPECTFULLY ASK YOUR AYE VOTE
AT THE APPROPRIATE TIME THANK
YOU. MOVING TO FILE ITEM FOR.
AB NINETEEN SEVENTY EIGHT
GIPSON. FIVE OF COURSE AS FAR
FILE ITEM FIVE
. NINETEEN
SEVENTY EIGHT. THANK YOU MADAM
CHAIR AND MEMBERS THANK YOU FOR
ALLOWING ME TO PRESENT ASSEMBLY
BILL NINETEEN SEVENTY EIGHT
THIS BILL SEEKS TO EXTEND THE
SUNSET TO ENSURE THE BORROWERS
ARE OT CHARGED TWICE NGUYEN
RECOVERING PROPERTY SEES AS
COLLATERAL RELATED TO PAWN SHOP
LOANS- UNTIL JANUARY ONE TWENTY
TWENTY SEVEN. IN THE PROCESS OF
GETTING A LOAN FROM A PAWN SHOP
A BARBER PROVIDES COLLATERAL.
THAT MAY BE SEIZED BY THE PAWN
SHOP. IF THE BORROWER DEFAULTS
ON PAYING BACK THE LOAN. IF
THIS IS SUNSET IS NOT EXTENDED
WHEN A CONSUMER DEFAULTS ON
SEEKING ACQUIRED THEIR CHOIR TO
SEIZE COLLATERAL THEY MUST PAY
A SALES TAX ON THE ITEM THEY
ARE ACQUIRING EVEN THOUGH THEY
HAVE ALREADY PAID THAT SALES
TAX ON THEIR INITIAL PURCHASE
THIS BILL SEEKS TO CONTINUE TO
PROVIDE A SALES TAX EXEMPTION.
FOR PURCHASERS OF SEIZE
COLLATERAL ANDPROVIDES A FAIR
TAX STRUCTURE FOR THE CONSUMERS
HERE WITH ME TO PROVIDE
SUPPORTING TESTIMONIES
REPRESENTATIVE IN CALIFORNIA
POM PAWN BROKERS ASSOCIATION
WITH SELF INTRODUCE. HI I'M JAN
SCHNEIDER I'M PRESIDENT OF THE
CALIFORNIA PAWN BROKERS
ASSOCIATION MADAM CHAIR
COMMITTEE MEMBERS I WOULD
RESPECTFULLY ASK FOR YOUR
SUPPORT OF AB NINETEEN SEVENTY
EIGHT IT'S- AN EXEMPTION THAT
IS RARELY USED BUT WHEN IS
NEEDED IT'S VERY HELPFUL FOR
OUR CUSTOMERS THAT FOR WHATEVER
REASON WERE UNABLE TO COME BACK
TO REDEEM THEIR ITEMS IN A
TIMELY MANNER. AND IT'S VERY
DIFFICULT FOR THEM TO HAVE TO
BUY BACK THEIR ITEM AND PAY
SALES TAX ON IT WHEN THEY'VE
ALREADY DONE SO. THANK YOU.
ADDITIONAL IN THIS IS IN
SUPPORT. WITNESSES IN
OPPOSITION. SEEING NONE
COMMENTS AND QUESTIONS FROM THE
COMMITTEE. WOULD YOU LIKE TO
CLUBS RESPECTFUL ASSN AYE BOTH
APPROPRIATE TIME MADAM CHAIR
THANK YOU VERY MUCH HAVE A GOOD
DAY. THANK YOU. WE CALL MISTER
BONTA.
AND THIS IS.
YEAH A-
NEWS.
WHEN WE CALL THE ROLL FOR
FILE ITEM ONE ABSENTEES CALL
THE ABSENTEES WITH ISLAND
MULLIN WAS ONE. BY ONE. HE SAID
I HE SAID HI-
NINE. FILE ITEM
NUMBER TWO AB NINETEEN FORTY
EIGHT ASSEMBLY MEMBER BONTA
WOULD YOU LIKE TO OPEN THANK
YOU MADAM CHAIR COLLEGE FOR THE
OPPORTUNITY TO PRESENT AB
NINETEEN FORTY EIGHT WHICH I'M
WORKING ON WITH SOME MY
COLLEAGUES HAVE BEEN WORKING
ON. CANNABIS POLICY SINCE
TWENTY FIFTEEN WHEN WE PASSED
THEM SIERRA STAY TOGETHER AS A
MEMBER LACKEY AND ASSEMBLY
MEMBER BECAUSE COOLEY IN JONES
SAWYER AND- YOU KNOW WE'VE
WE'VE DONE A LOT A SHORT PERIOD
OF TIME. WITH CANNABIS
REGULATION TWENTY FIFTEEN
PASSED THEM SIERRA SAY WHICH
PROVIDE REGULATION FOR THE
FIRST TIME AROUND OUR MEDICAL
CANNABIS MARKET PLACE WITH THE
GOALS OF PROTECTING THE PUBLIC
IN CHILDREN THE ENVIRONMENT
ENSURING SAFE PRODUCTS COMBAT
IN THE ILLICIT MARKET AND THEN
THE VOTERS OF CALIFORNIA TWENTY
SIXTEEN PASSED PROP SIXTY FOUR-
WHICH M. REQUESTED. THERE OF
CALIFORNIA REQUESTED AND VOTED
FOR A LEGALIZED REGULATED-
ADULT USE CANVAS MARKETPLACE
BUT RIGHT NOW. THE MARKET THE
CAMPUS MARKET PLACE IN
CALIFORNIA IS FAILING. WHAT DO
I MEAN BY THAT- THE LESSER
MARKET PLACES DOMINATING NOT
THE REGULATED MARKETPLACE WHICH
IS WHAT. CALIFORNIANS ASK FOR
WITH PROP 6475% OF ALL SALES
WITHIN. CALIFORNIA ARE IN THE
ILLICIT MARKET PLACE. AND SO IT
IN RESPONSE TO THE VERY LARGE
ILLICIT MARKET PLACE THAT WE
NEED TO PASS A BE NINETEEN
FORTY EIGHT. EN MY VIEW WHICH
WILL CREATE A THREE YEAR WINDOW
TO ACCELERATE ENCOURAGE
CONSUMERS AND BUSINESSES TO
TRANSITION AWAY FROM THE LIST
OF MARKET PLACE AND TO. THE
REGULATED MARKET PLACE. IT HAS
A EXCISE TAX DECREASE OF 4% FOR
THREE YEARS AND A ELIMINATION
OF THE CULTIVATION TAX FOR
THOSE THREE YEARS AND THEN- THE
TAXES WILL RETURN TO WHAT THEY
WERE AFTER THOSE THREE YEARS
WIDE. ARE THOSE THREE YEARS
IMPORTANT BECAUSE THOSE. ARE
THE EARLY YEARS WHERE AS THE
CANNABIS MARKETPLACE MATURES IN
THE REGULAR MARKET PLACE-
GROWS- BUSINESSES AND CONSUMERS
CAN MAKE THE DECISION TO
ACTUALLY PARTICIPATE IN THE
REGULATED MARKET PLACE INSTEAD
OF THE ILLICIT MARKET PLACE
WHERE THEY'VE BEEN. FOR MANY
YEARS SO THIS IS A STRATEGY
THAT IS NOT UNPRECEDENTED IT'S
WORKED IN OTHER STATES SUCH AS
OR AN AND IN WASHINGTON. AND
WE'VE SEEN THAT IN THOSE
CIRCUMSTANCES A SIMPLIFICATION
OF THE TAXES AND LOWERING OF
THEM. BE REVENUE ACTUALLY GROW
AND THAT'S WHAT WE BELIEVE WHAT
HAPPENED HERE AS WELL A WITH A
FULL 75% OF AB CANVAS MARKET
ACTORS IN CALIFORNIA- IN THE
LESSON MARKET PLACE. WE HAVE A
HUGE OPPORTUNITY TO GROW THE
REGULATED MARKETPLACE WHICH IS
ONLY 25% OF COURSE AS- PART- IS
OBSERVE LOWERING BARRIERS MOVE
OVER TO THE REGULAR MARKET
PLACE THEY WILL BECOME
TAXPAYERS. REGULAR THE PLATE
WELL I ANY PIECE TAX REVENUE.
THAT WILL GO TO ALL OF THE- M.
PURPOSES. LAID OUT IN PROP
SIXTY FOUR. SO I AM THE
CHALLENGE OF HAVING A- REGULAR
MARK. THIS IS REAL WE KNOW.
THAT IN THIS IS THE THIRD YEAR
I BOUGHT THIS BILL. AND DURING
THAT TIME THE- REGULAR MARKET
PLACE HAS HAS BEEN SUFFERING WE
SAW ONE OF THE BIGGEST PLAYERS.
IN THE REGULATED MARKETPLACE
FLOW KANA REPORTEDLY LAYING OFF
25% OF ITS WORKFORCE ON
NOVEMBER FOURTEENTH THEN THE
NEXT DAY. MAD MEN ONE OF THE
LARGEST PLAYERS AS WELL THE
RETAIL. SECTION OF THE CANNABIS
INDUSTRY ANNOUNCED THAT IT
WOULD LAY OFF A HUNDRED AND
NINETY. EMPLOYEES SO THIS
ISN'T. SORT OF SOME. FOLKS
SAYING THAT SOMETHING'S GOING
TO HAPPEN IF WE DON'T ACT THIS
IS HAPPENING NOW REAL TIME- THE
DAMAGE IS BEING DONE AND THAT
THERE'S A REAL NEED TO MEET THE
VOTERS REQUIREMENTS OF HAVING A
REGULAR MARKET PLACE WE DON'T
HAVE THAT NOW SO. WE NEED TO
ADJUST AND TAKE STEPS AND I
BELIEVE THIS IS AN APPROPRIATE
STEP. I AM THE- DECREASE IN THE
EXCISE TAX. ACCORDING TO THE
DECEMBER BLESSED- LEGISLATIVE
ANALYST'S REPORT. WOULD
INCREASE LEGAL MARK MARKET
PARTICIPATION IN A RANGE FROM
6% 220% THAT'S GOOD THAT'S- ONE
OF THE THAT'S THE KEY GOAL. OF
THIS BILL. AND I BELIEVE THAT
OVER TIME WITH MORE
PARTICIPANTS IN THE RATE
MARKETPLACE SERVICE AS
TAXPAYERS. I WE WILL INCREASE
REVENUE NOT JUST WITH EXCISE
TAX- BUT WITH THE SALES TAX AS
WELL. SO THANK YOU FOR THE
OPPORTUNITY TO PRESENT HAPPY TO
ANSWER ANY QUESTIONS THAT YOU
MIGHT HAVE HERE IN SUPPORT OF
THE BILL IS BLACK JOHNSON
LEGISLATIVE DEPUTY DIRECTOR FOR
STATE TREASURER FIANNA MA. GOOD
AFTERNOON SURE COMMITTEE MAY
PLAY. OVER HALF OF TEACHERS IF
YOUR MOM TO PROUD SPONSOR OF AB
NINETEEN FORTY EIGHT. ON HER
BEHALF LIKE TO THINK IT'S NEVER
BONTA ONCE AGAIN FOR THE SHIP
ONE TACKLE THIS IMPORTANT ISSUE.
BY PASSING AB NINETEEN FORTY
EIGHT WE CAN HELP LEGAL CAMPUS
BUSINESS WITH THE TRANSITION TO
THE MARKETPLACE. JUST LIKE WE
WOULD FOR ANY STARTUP INDUSTRY
TO ENSURE THEY HAVE A FAIR
CHANCE TO SUCCEED IN CALIFORNIA.
WE DON'T CREATE THESE TYPES OF
BARRIERS TO SUCCESS FOR OTHER
STARTED TO CALIFORNIA. I DON'T
SEE WHY THE- CANNABIS SHOULD BE
TREATED ANY DIFFERENTLY.
DESTRUCTIVE IN A STRONG
ADVOCATE FOR THIS INDUSTRY
SINCE THE TIME OF THE BOARD OF
EQUALIZATION. WHAT SHE SAW
FIRST HAND HOW CAN WAS
BUSINESSES CONTINUE TO FACE
SIGNIFICANT BARRIERS TO LEGAL
ENTRY. INCLUDING EXORBITANT TAX
RATES IMPOSED A PROPOSITION
SIXTY FOUR. THIS IS PROVED
BURDENSOME IS COMPLYING
CANNABIS ENTITIES. ARE UNABLE
TO COMPETE MORE EVEN WITH THE
BLACK MARKETS CONTINUED ACTIVE
IN CALIFORNIA. WHICH IS STATED
EARLIER HAVE ACCOUNTED FOR MORE
THAN 7% OF CONSUMERS SEVEN FIVE
PERCENT. OF CONSUMER SPENDING.
THIS HAS RESULTED IN HUNDRED OF
JOB LOSS I INDUSTRY. AND IS
CHEN WILL CONTINUE UNLESS
SOMETHING IS DONE. TO REDUCE
THE BLACK MARKET CALIFORNIA'S
ENCOURAGE CANVAS OPERATORS TO
COME TO THE LEGAL AND REGULATED
SYSTEM. WE CAN TRANSPARENTLY
ARE THESE BUSINESSES COLLECT
TAXES AND PROVIDE MORE PUBLIC
SAFETY FOR BUSINESS AND
CONSUMERS. I UNDERSTAND ELIOT'S
PRESS CONCERNS IN THE DECEMBER
NINETEEN REPORT. HOWEVER THE
STATE'S BAKER THE STRUCTURE
BELIEVES IT IS REASONABLE PATH
FOR. TO ENSURE THAT THEY'RE
GOING TO FIFTEEN MILLION
THRESHOLD IS MET. THE STATE
BROUGHT AN EIGHTY FOUR POINT
FOUR MILLION EXCISE TAX REVENUE
IN EACH OF THE LAST TWO
QUARTERS. YOUR YEAR WE'RE
SEEING AN UPPER CHAINING CANVAS
TAX REVENUE. IN FACT WITH A 6%
INCREASE IN TWO OF NINETEEN
COOPER TO TWENTY EIGHTEEN. JUST
TAKING THAT INTO ACCOUNT. IF
YOU HAVE TO ASSUME THAT ANY DIP
IN CURRENT TAX REVENUES. BY
TEMPORARY LOWERING THE TAX
RATE. CAN BE ALSO I'D BE
CONTINUED GROWTH COUPLED. WITH
MORE COMPETITIVE PRICING. TO
COMPETE WITH THE BLACK MARKET.
ONE LAST IS ESTIMATED ILLEGAL
CANNABIS CAN GENERATE EIGHT TO
TWENTY BILLION IN ON YOUR
REVENUE AND AB NINETEEN FORTY
STEP NINETEEN FORTY EIGHT IS A
STEP IN THE RIGHT DIRECTION TO
MEET THOSE REQUIREMENTS THE
CHURCH LOOKS FORWARD TO WORKING
WITH HIM BONTA TO ENSURE THIS
YEAR WE FARM IMPLEMENT THIS HAS
MEASURE RESPECT AS ONE I'VE OR
THE APPROPRIATE TIME. THANK YOU
FOR YOUR TIME. ALL RIGHT WE'RE
GONNA COME BACK YOUR TEST MY
REAL AT WIN ASSISTANCE SUPPORT.
AMONG THEM. I THANK YOU ADAM
SPEICHER'S SOUTHERN CALIFORNIA
COALITION STRONGLY IN SUPPORT
OF AB NINETEEN FORTY EIGHT-
JUST A COUPLE OF THINGS TO ADD
TO THE TESTIMONY- OUR
MEMBERSHIP IS DYING THE LEGAL
MEMBERS OF OUR GROUP WERE DYING
LEGACY OPERATORS BEEN DOING
THIS TEN FIFTEEN TWENTY YEARS.
AND THEIR PRICE POINTS TO
COMPETE WITH THE ILLICIT MARKET
IS ATAR DOUBLE. OF THEIR
COMPETITION IN THE ILLICIT THEY
CAN'T COMPETE AND IN LA IS WERE
TRYING TO REALLY ROLL OUT AND
CONTINUE A VERY ROBUST SOCIAL
EQUITY PROGRAM AS WELL AS THE
STATE- OUR CONCERN IS THAT IF
LEGACY OPERATORS ARE FAILING AT
ALARMING RATES. WHAT ARE WE
SETTING UP SOCIAL EQUITY
BUSINESSES TO WALK INTO BANKING
Q. EVERYONE WITNESSES PLEASE OF
YOUR NAME AND YOUR AFFILIATION.
LINDSEY ROBINSON EXECUTIVE
DIRECTOR OF THE CALIFORNIA
CANNABIS INDUSTRY ASSOCIATION
WE REPRESENT ABOUT FIVE HUNDRED
BUSINESSES ACROSS THE STATE A
AND WE STRONGLY SUPPORT THE
BILL AND I THINK ASSEMBLYMEMBER
BONTA FOR HIS LEADERSHIP. MY
NAME IS WADE LAUGHTER OMA CO
FOUNDER OF PROJECT CBD BUT I'M
HERE TODAY. IS THE CHAIR OF THE
NEVADA COUNTY CANNABIS
ALLIANCE. THE PERMITTED IN
LICENSED FARMERS BAG FOR RELIEF
IN NEVADA COUNTY AND THIS IS A
STEP IN THE RIGHT DIRECTION-
THANK YOU. SUPPORT BY. HELLO
KRISTEN OF IT ALL- CHAIRPERSON
FOR THE INTERNATIONAL CANNABIS
FARMERS ASSOCIATION STRONG
SUPPORT OF AB NINETEEN FORTY
EIGHT BUT I'M ALSO HERE TO
SPEAK ON BEHALF OF HUMBLED
FINEST WHICH IS A LICENSED
COMPANY- CANNABIS BUSINESS UP
IN THE HUMBOLDT. AREA AND WE
HAVE CULTIVATION NURSERY
MANUFACTURING PROCESS SEEN AND
DISTRIBUTION AND DUE TO THE
STRESSES IN THE CURRENT
MARKETPLACE WE ARE NOT GOING TO
BE RENEWING OUR MANUFACTURING
LICENSE AND WE WILL NOT BE
RENEWING OUR NURSERY LICENSE
AND LAST WEEK WE LAID OFF ALL
OF OUR MANUFACTURING STAFF SO.
THIS IS A DEFINITE SUPPORT AND
WENT RIGHT DIRECTION WE
CERTAINLY HOPE THAT WE SEE THE
PAST SIR. YEAH GIVE. GOOD
AFTERNOON MADAM CHAIR AND
COMMITTEE AMY JENKINS ON BEHALF
OF CLIENTS BLOOM FARMS CAN
CRAFT A NEW TROPICAL BENEATH.
THERE ARE THREE LICENSE
MANUFACTURERS AND DISTRIBUTORS
ALL OF X. EXPERIENCE
SIGNIFICANT LAYOFFS IN STRONG
SUPPORT THIS BILL THANK YOU
ASSEMBLYMAN BONTA THANK YOU.
AFTERNOON ADAM SHARON MEMBERS
TRACY STEVEN SOME HALF A METER
ALSO IN STRONG SUPPORT THANK
YOU TO THE AUTHOR. GOOD
AFTERNOON ANDREA FROM ME DOES
ON BEHALF OF THE CITIES OF
OAKLAND BERKELEY SAN LEANDRO
EMERYVILLE AS WELL AS A MOXIE
CANNABIS PRODUCTS IN STRONG
SUPPORT THANK YOU. ALICIA
PRIEGO ON BEHALF OF EASE
INSTRUCTS SUPPORT. MEXICO OR
SOME OF THE SILICON VALLEY
CAMPUS CLIENTS IN SUPPORT.
AMBER MORRIS WITH NOR CAL
CANNABIS AND SUPPORT. MICHAEL
WHEELER WITH THE FLOW KANA IN
SUPPORT WE WORK WITH ABOUT TWO
HUNDRED FARMS AND I'VE GOT A
STACK OF LETTERS FROM FARMERS
TO IN SUPPORT THANK YOU. PAUL
HAS VERY LOVINGLY LEGALLY. FOR
MENDOCINO COUNTY- I'M LACES
CULTIVATOR BUT I'M REPRESENTING
THE ESTIMATED NINE THOUSAND.
UNLICENSED CULTIVATORS
MENDOCINO COUNTY- THAT WOULD
LOVE TO BE ABLE TO- HAVE THE
BARRIER TAKING DOWN THIS IS A
VERY BIG STEP. OF ONE OF THE
MAJOR BARRIERS THAT NEEDS TO BE
TAKEN DOWN STRONG SUPPORT THANK
YOU. THANK YOU. SEASON SEVEN
MENDOCINO COUNTY LOVINGLY IN
LEGALLY SECOND GENERATION
LEGACY FORMER IF WE CAN
INCREASE ADOPTION RATES IN OUR
COUNTY IN OUR STATE WE'RE
LOOKING AT A STABLE LONG TERM
TAX BASE WE RESPECTFULLY URGE A
YES VOTE THANK YOU. THANK YOU.
I'M SURE MEMBERS RAN BORN ON
BEHALF OF CMG KHALIFA WHICH IS
ONE OF THE LARGEST VERTICALLY
INTEGRATED COMPANIES I CAN'T
WAS COMPANIES IN THE STATE ALSO
OVER THE LAST THREE MONTHS LATE
OFF ABOUT A THIRD OF ITS
EMPLOYEES IN VERY STRONG
SUPPORT THIS BILL. THANK YOU.
THANK YOU. WITNESSES IN
OPPOSITION. SEEING NINE
COMMENTS AND QUESTIONS FROM THE
COMMITTEE. SEAMAN I JUST CAN IASK ONE QUICK QUESTION IN YOUR
TESTIMONY RIGHT LIKE MAYBE.
SECOND PAGE- I WAS TRYING TO
WATCH WHERE YOU WERE. YOU SAID
SOMETHING ABOUT THE FACT THAT
THE LA RIVER THAT THIS WOULD
REDUCE THE TAXES BUT THAT. THAT
YOU THOUGHT THAT YOU COULD MAKE
IT UP WHAT IS THAT SAYING-
THING THE- THE REDUCTION OF
EXCISE TAX TO A 15% ELEVEN
PERCENT. THEY ARGUE THAT WOULD
BE A REVENUE HIT. WERE ARGUING
THAT. AS A RESULT OF LOWERING
THAT YOU'RE GOING TO MARKET TO
DOES THE OFFSET THAT LOS. I
JUST WANNA MAKE SURE WE ALL
HEARD WHAT IS A TALK A LITTLE
FAST AND NOW IT'S OKAY IT WILL
WE WERE TRYING TO KEEP UP I
JUST WANNA MAKE SURE WE DON'T
LOSE IT. OKAY ANA. A SUMMER
BONTA WOULD YOU LIKE TO CLOSE.
YEAH THANK YOU FOR THE
OPPORTUNITY TO PRESENT THIS
BILL I KNOW THAT. I'M THERE ARE
SOME DIFFERENT PERSPECTIVES
AROUND THE BEST APPROACH GOING
FORWARD AND APPRECIATE THE
DIALOGUE DISCUSSION ON THAT. AM
I DO THINK THERE SHOULD BE NO
DISPUTE ABOUT THE- THE THREAT
TO THE CAR REGULATED MARKET
PLACE IN THE FACT THAT SEVENTY
FIVE PERCENT. OF THE SALES ARE
IN THE LIST OF MARKET PLACE AND
THAT'S NOT THAT'S NOT WHAT THE
VOTERS VOTED FOR PROP SIXTY
FOUR. IF WE'RE GONNA. MEET THE
VOTERS WELL WE NEED TO CREATE A
ROBUST SUCCESSFUL WORKING
REGULATED MARKET PLACE AND WE
DON'T HAVE THAT WE ONLY HAVE A
FEW LEVERS AT OUR DISPOSAL. ONE
IS LOWERING TAXES AND OTHER IS.
A SIMPLE FIND. REGULATIONS WE
CAN ALSO CRACKED DOWN ON THE
ILLICIT MARKET PLACE WITH
ENFORCEMENT I THINK WE SHOULD
DO ALL THREE- BUT THIS IS ONE
VERY IMPORTANT. PART OF THAT
THREE LEGGED STOOL LOWERING
LOWERING THE TAXES SO- I KNOW
THERE ARE SOME CONCERNS ALSO
ABOUT. MAKING SURE WE HIT THE-
THRESHOLDS ASSESS SET FORTH BY
THE LA I THINK THEY- THEY- PICK
THAT AT ABOUT THREE HUNDRED
FIFTY MILLION DOLLARS IN
REVENUE. GENERATION THE LAST
TWO QUARTERS ARE WE JUST OF- AB
MARCH SIXTH TWENTY TWENTY AT
LEAST. US THAT. THE LAST TWO
QUARTERS JUST FOR THE EXCISE
TAX ALONE NOT THE CULTIVATION
TAX. GENERATED EIGHTY FOUR
POINT FOUR MILLION DOLLARS EACH
OF THOSE QUARTERS IF YOU. I AM.
REJECT IT OUT FOR A FULL YEAR
THAT'S JUST ABOUT JUST UNDER
THREE HUNDRED FORTY MILLION. ON
THE EXCISE TAX ALONE- SO. YOU
KNOW WE THINK THAT WERE THAT
WERE IN THAT RANGE- TO HIT
THREE HUNDRED FIFTY WITH WITH
THE GROWTH OF THE TAX BASE. AS
OUR STATE'S BANKER- THE
TREASURER. HAS HAS STATED NIGHT
BYE I THINK YOU KNOW THE
CONCEPT THAT SHE HAS SET FORTH
IS THE WHOLE FOUNDATION OF OUR
BILL THAT BY LOWERING TAXES YOU
GROW THE TAX BASE AND YOU GET
MORE TAX REVENUE OVERALL- AND
THAT WE ARE WE THINK WE'RE
GONNA EASILY HAD THREATENED
FIFTY MILLION WITH OUR PROPOSAL.
SO I THANK YOU FOR THE
OPPORTUNITY THANK YOU FOR THE
DISCUSSION THANK YOU FOR YOUR
INPUT AND- GUIDANCE AS ALWAYS
THANK YOU FOR THE OPPORTUNITY
TO PRESENT. THIS TESTIMONY ONLY
BUT I'M JUST. FURTHER JUST ON
THE RECORD I JUST WANNA MAKE
SURE THAT WE'RE CLEAR. I THINK
YOU FOR BRINGING THE BELL WE DO
HAVE SOME CONCERN THERE IS SOME
DISCREPANCY BETWEEN THE
TREASURER AND THE LA ELSE-
ESTIMATIONS ON WHAT THAT WOULD
LOOK LIKE THAT YOU AND I WILL
CONTINUE THAT CONVERSATION SO I
LOOK FOR TO DOING THAT. THANK
YOU THANKS. WE ARE ADJOURNED.