BANKING COMMITTEE HEARING AND
WELCOME ALL OF THE ASSEMBLY
BANKING COMMITTEE MEMBERS. DO
YOU TODAY CONTAINS A AT HOME
ORDER WE ARE PARTICIPATING
PHYSICAL AND PHYSICAL DISTANCE%
IN HERE IN THE HEARING ROOM AND
THROUGHOUT THE CAPITOL BUILDING
SO WE ARE ONLY ABLE TO HAVE
LIMITED NUMBER OF PEOPLE WATCH
AND PARTICIPATE IN THE HEARING.
AND IN PERSON. WE ARE ALSO
REQUIRING THAT MASK THE WARNING
PHYSICAL DISTANCING BE
MAINTAINED BY ALL MEMBERS OF
THE PUBLIC TESTIFYING WEATHER
HERE IN THE ROOM OR AT A VIDEO
CONFERENCING SITE. IF YOU DO
NOT HAVE A MASK WE CAN PROVIDE
ONE FOR YOU. BECAUSE OF OUR
SPACE LIMITATIONS WE HAVE SOME
COMMITTEE MEMBERS. SITTING AT
THE DIESS OR DIFFERENT PLACES-
AND. WE'RE ALSO HAVING THE
FIRST FEW ROWS OF THIS. WE'RE
WATCHING THE AUDIENCE AND WHERE
YOU SAID SORRY THAT'S A SIMPLE.
FOR THOSE COMMITTEE MEMBERS WHO
WOULD LIKE TO SPEAK DURING THE
HEARING PLEASE APPROACH- PLEASE
JUST PUT THE LIGHT ON FOR YOUR
MIKE AND KIND OF TURN AROUND
AND LET ME KNOW. AND WE DO WANT
TO KEEP PHYSICAL DISTANCE SCENE
FOR ANYONE IN THE AUDIENCE YOU
DO HAVE THE PLEXI GLASS AND A
MICROPHONE THAT WE ASK YOU TO
STAND BEHIND FOR ANY WITNESS
TESTIMONY TODAY. FOR THE PUBLIC
IN THE ROOM IF ANY MEMBER OF
THE PUBLIC HERE IN THE ROOM
WOULD LIKE TO TESTIFY IN A BILL
PLEASE. LET US KNOW HOW. YOU
RAISE YOUR HAND AND WE WILL.
ASK THAT YOU APPROACH THE
MICROPHONE AT THE APPROPRIATE
TIME. I WOULD ASK THE PUBLIC
NOT TO. TOUCH THE MICROPHONE.
YOU CAN EXIT THE HEARING ROOM
ONCE YOU ARE DONE TESTIFYING TO
RETURN TO YOUR SEAT. PLEASE BE
SURE TO OBSERVE PHYSICAL
DISTANCING UPON LEAVING THE
CAPITAL INCLUDING LIMITING.
ELEVATOR USED TO ONE PERSON AT
A TIME. FOR ALL THE DIALING
WITNESSES. WE WILL ALSO BE
USING A MODERATED TELEPHONE
SERVICE. DO WHICH ANY WITNESS
CAN TESTIFY ON A BILL. THE CALL
IN NUMBER FOR THIS HEARING IS.
EIGHT SEVEN SEVEN. SIX NINE
TWO. EIGHT NINE FIVE SEVEN. AND
THE ACCESS CODE IS ONE THREE.
ONE FIVE. FOUR TWO ZERO TWO.
YOU CAN ALSO FIND THIS NUMBER
ON THE ASSEMBLY BANKING
COMMITTEE WEBSITE AS WELL AS
YOUR TV SCREEN. IF YOU'RE
CALLING IN PLEASE PLAN TO DO.
PLEASE TO DO SO AS THE AUTHOR
OF THE BILL YOUR TESTIFYING ON
IS BEGINNING THEIR
PRESENTATION. THE OPERATOR ON
THE LINE WILL GIVE YOU
INSTRUCTIONS ON HOW TO BE
PLACED IN QUEUE BASED ON
WHETHER YOU SUPPORT OR OPPOSE
THE BILL. IF YOU ARE CALLING IN
PLEASE ELIMINATE ALL BACKGROUND
NOISE THIS INCLUDES MUTING YOUR
LIVESTREAM BROADCAST AND YOUR
SMART DEVICES TO REDUCE THE
SOUND DISTORTION. IF YOU ARE
HAVING PROBLEMS WITH THE
MODERATED PHONE SERVICE YOU CAN
CALL THE COMMITTEE. AT.
916-319-3081 AND THE STAFF WILL
BE THERE TO TRY TO HELP YOU. I
ALSO WANT TO NOTE THAT WE ARE
ACCEPTING WRITTEN TESTIMONY. TO
THE POSITION LETTER PORTAL ON
THE COMMITTEE'S WEBSITE. WE MAY
NEED TO LIMIT HOW LONG THE
PHONE LINES ARE OPEN FOR EACH
BILL AS WE ARE ON A TIGHT
HEARING SCHEDULE THANK YOU FOR
YOUR PATIENCE. FOR THE MEMBERS
OF THIS COMMITTEE MEMBERS IF
YOU WOULD LIKE TO RESPOND TO A
ROLL CALL ASK A QUESTION OR
PROVIDE A COMMENT. PLEASE JUST
AS TURN YOUR MIKE ON AND SIGNAL
TO ME AND WE WILL RECOGNIZE YOU
SPEAKING. I BELIEVE WE HAVE A
QUORUM SO I WILL ASK. THAT WE
ESTABLISH QUORUM BY CALLING THE
ROLE. CAN WE CALL THE ROLL
PLEASE. LAMONT HERE I'M ON HERE
CHEN HERE CAN HEAR OUR QUE HAN.
OKAY IN HERE BURKE. BIRKIR
CERVANTES CERVANTES HERE CHOI
HERE CHOI HERE FONG FONG HERE
GABRIEL GABRIEL HERE GRAYSON
THERE GRAYSON HERE STONE. WEBER
HERE WEBER HERE WICKS. WE DO
HAVE QUORUM TODAY WE HAVE TWO
BILLS ON THE AGENDA WE WILL
START WITH AB NINE SEVEN NINE
BY ASSEMBLYMEMBER HOLDING
GARCIA AND SHOE AND A C. S.
ARMOR HOLDEN HERE. SO WE WILL
HAVE YOU START SOME MEMBER
HOLDEN WHENEVER YOU'RE READY.
OKAY THANK YOU MADAM CHAIR AND
MEMBERS I LIKE TO THANK YOU FOR
ALLOWING ME TO PRESENT EIGHTY
NINE SEVENTY NINE TODAY. WELL
WE HAVE A MOTION AND A SECOND.
THANK YOU- I ALSO LIKE TO THANK
ASSEMBLYMEMBERS A CRISTINA
GARCIA AND DAVID CHIU FOR
JOINING OFFERING AS WELL AS
ALWAYS RATES AS A PRINCIPAL CO
AUTHOR. TO THIS IMPORTANT PIECE
OF LEGISLATION. WHEN
ASSEMBLYMEMBER GARCIA SENATOR
HUESO AND I WERE CHAIRS OF THE
WOMEN'S CAUCUS LATINO CAUCUS
AND BLACK CAUCUS. WE WORK
TOGETHER TO ADDRESS RACIAL AND
GENDER DISPARITIES AT TECH
COMPANIES IN SILICON VALLEY.
THAT WAS IN TWO THOUSAND
SEVENTEEN. THERE ARE FEW
COMPANIES HAVE ACTED UPON THEIR
COMMITMENTS TO DIVERSITY SEVERE
THIS UNDER REPRESENTATION OF
WOMEN AND MINORITIES IN THE
TECH INDUSTRY HAVE CONTINUED TO
THIS DAY. UNFORTUNATELY THIS
PROBLEM IS NOT UNIQUE TO TECH
COMPANIES. WOMEN AND MINORITIES
ARE UNDER REPRESENTED ACROSS
WHITE COLLAR INDUSTRIES
ESPECIALLY AT THE MANAGERIAL
AND EXECUTIVE LEVELS. A
RESPONSE TO THE PERVASIVE UNDER
REPRESENTATION OF MINORITIES
AND FOLLOWING THE SUCCESS OF
SENATOR JACKSON'S SB EIGHT
TWENTY SIX ASSEMBLY BILL NINE
SEVENTY NINE WOULD REQUIRE A
MINIMUM OF ONE DIRECTOR FROM
UNDER REPRESENTED COMMUNITY ON
ALL BOARDS OF PUBLICLY TRADED
CORPORATIONS HEADQUARTERED IN
CALIFORNIA BY THE END OF
TWENTY. TWENTY ONE. THE BILL
WILL ALSO REQUIRE A MINIMUM OF
TWO DIRECTORS FROM
UNDERREPRESENTED COMMUNITIES
FOR BOARDS THAT HAVE FIVE TO
EIGHT DIRECTORS. AND THREE
DIRECTORS FOR BOARDS WITH MORE
THAN NINE DIRECTORS BY THE END
OF TWENTY TWENTY TWO. THE US
DEPARTMENT OF LABOR BUREAU OF
STATISTICS HAS REPORTED THAT IN
201890% OF CHIEF EXECUTIVES AND
UNITED STATES WERE WHITE. WHAT
CALIFORNIA PRIDES ITSELF ON
HAVING A MAJORITY MINORITY
POPULATION AND ECONOMIC
POWERHOUSE CORPORATIONS DO NOT
REFLECT THE VAST CULTURAL
WEALTH OF THE STATE. FOR
EXAMPLE OF THE TOP TEN
CALIFORNIA BANKS ONLY 30% OF
DIRECTORS ARE PEOPLE OF COLOR.
THIS IS CYSTIC PALES IN
COMPARISON TO THE 67% OF
CALIFORNIA'S POPULATION THAT
ARE PEOPLE OF COLOR. WE CAN
ALSO LOOK TO SILICON VALLEY FOR
EXAMPLES OF UNDER
REPRESENTATION. ON AVERAGE
BLACK AND LATINO TECH EMPLOYEES
MAKE UP LESS THAN TEN PERCENT.
OF WORKERS AT A PREMIUM
COMPANIES SUCH AS GOOGLE APPLE
MICROSOFT FACEBOOK AND LINKEDIN.
THIS PERCENTAGE IS
DISPROPORTIONATE TO THE ROUGHLY
20% OF COMPUTER SCIENCE
GRADUATES THAT ARE BLACK OR
LATINO. A LOT OF RECENT SOCIAL
AND RACIAL JUSTICE FOR- PROTEST
CORPORATIONS ACROSS THE COUNTRY
HAVE CONDUCTED REVIEWS OF THEIR
WORKFORCE THAT HAVE MADE
PROMISES TO INCREASE DIVERSITY.
MANY TECH COMPANIES. A BEGAN
WHICH WE BEGAN IN TWO THOUSAND
FOURTEEN YET PERCENTAGE OF
PEOPLE OF COLOR BEING HIRED AND
PROMOTED HAS NOT CHANGED.
ASIANS AND PACIFIC ISLANDERS
MAKE UP A GREATER PERCENTAGE OF
THE WHITE COLLAR WORKFORCE BUT
AT THE LEAST BUT ARE THE LEAST
LIKELY TO BE PROMOTED AND MOVE
UP THE LADDER. A RECENT REPORT
BY THE MCKINSEY AND COMPANY
SHOWS THAT COMPANIES WITH A
DIVERSE WORK FORCE AND A
DIVERSE CORPORATE BOARD
PERFORMED BETTER THAN BOARDS
WITHOUT DIVERSITY. YET THE FACE
OF THE WHITE COLLAR EMPLOYEE
REMAINS UNCHANGED. BY CHANGING
THE CORPORATE BOARD TO CHANGE
THE COMPANY'S CULTURE. A
DIVERSE BOARD CONTRIBUTES TO A
COMPANY THAT VALUES DIVERSITY
THANK A READILY ADAPT TO THE
CHANGING NEEDS OF ITS WORKFORCE
AND CUSTOMER BASE. WE'RE GOING
TO ADDRESS THE RACIAL INJUSTICE
AND INEQUITY IN OUR SOCIETY
PEOPLE OF COLOR MUST HAVE A
SEAT AT THE TABLE WERE
OVERWHELMING AMOUNT OF WEALTH
IS BASED. ESPECIALLY THE STATE
AS VERSUS CALIFORNIA. CURLED UP
GUARDINO GLOBAL GOVERNMENT
AFFAIRS AND POLICY EXECUTIVE
DIRECTOR BLOOM ENERGY AND BUCK
G. DIRECTOR OF THE CORPORATE
EXECUTIVE INITIATIVE EXECUTIVE
ADVISOR TO ASCEND. WILL PROVIDE
TESTIMONY I RESPECTFULLY ASK
RIVAL. YOU THANK YOU SOME
MEMBER HOLDEN AT WE DO HAVE THE
SUPPORT IN AND I WANT TO
CONFIRM YOU DON'T HAVE ANY OF
YOUR OTHER JOINT AUTHORS
DOESN'T KNOW THAT. NO ALL RIGHT
I SUPPOSE AND WE DO HAVE SOME
SUPPORT WITNESSES- AND I REMIND
THE SUPPORT WITNESSES THAT THEY
HAVE TWO MINUTES EACH OUR FIRST
WITNESS IN SUPPORT WILL BE
TESTIFYING OVER THE PHONE.
MODERATOR PLEASE CONNECT US
WITH CARL GUARDINO WHO WILL
TESTIFY AND ASSEMBLY BILL. NINE
SEVEN NINE. THANK YOU CHAIR
LIMON MY NAME IS CARL GUARDINO
EXECUTIVE VICE PRESIDENT GLOBAL
GOVERNMENT. AT YEAH MY CHAIR
LIMóN CAN YOU HEAR ME YES WE
CAN HEAR YOU PLEASE PROCEED
THANK YOU. THANK YOU THANK YOU
CHAIR LIMóN MY NAME IS CARL
GUARDINO EXECUTIVE VICE
PRESIDENT FOR GLOBAL GOVERNMENT
AFFAIRS AND POLICY AT BLOOM
ENERGY AS YOU MAY KNOW BLOOM
ENERGY AS A CLEAN ENERGY
COMPANY THAT WAS FOUNDED IN
CALIFORNIA NEARLY NINETEEN
YEARS AGO WITH A SIGNIFICANT
PORTION OF OUR MANUFACTURING
CONDUCTED. RIGHT HERE IN THE
GOLDEN STATE BLOOM ENERGY WAS
FOUNDED BY OUR VISIONARY CEO K.
R. SRIDHAR WHO IS NOT ONLY
COMMITTED TO BUILDING A GREAT
COMPANY. EQUALLY A GREAT
CULTURE THAT VALUES DIVERSITY
AND INCLUSION. OF OUR NINE
MEMBER BOARD OF DIRECTORS ONE
THIRD ARE FROM UNDERREPRESENTED
GROUPS ONE THIRD OF OUR
EXECUTIVE MANAGEMENT TEAM OF
WHICH I'M HONORED TO SERVE IS
FEMALE AND ONE THIRD ARE ETHNIC
MINORITY. MORE THAN HALF OF
BLOOM ENERGY'S U. S. EMPLOYEES
UNTIL A CERTAIN ARE FROM
UNDERREPRESENTED COMMUNITIES.
THAT BLOOM ENERGY WE KNOW THAT
A DIVERSE WORKFORCE AND DIVERSE
LEADERSHIP MAKES FOR A
DIVERSITY OF BACKGROUNDS
EXPERIENCES POINTS OF VIEW AND
ULTIMATELY BETTER DECISIONS AS
WAS NOTED IN THE HARVARD
BUSINESS REVIEW A DIVERSE BOARD
CONTRIBUTES TO BETTER DECISION
MAKING. IMPROVED COMPANY
GOVERNANCE AND CAN RESPOND TO
MARKET SHIFTS MORE EFFECTIVELY.
A RECENT MCKINSEY REPORT FOUND
THAT ETHNICALLY DIVERSE
COMPANIES ARE 35% MORE LIKELY
TO OUTPERFORM OTHER COMPANIES
THAT LACK A DIVERSE WORK FORCE
HAS THE MISSION OF BLOOM ENERGY
IS TO MAKE CLEAN RELIABLE
ENERGY AFFORDABLE TO EVERYONE
IN THE WORLD. IN THESE
CHALLENGING TIMES THAT MISSION
IS NOT ONLY INSPIRING IT IS
ESSENTIAL WE KNOW WE WILL BE
MOST EFFECTIVE IN ACHIEVING
THAT MISSION WITH A DIVERSE
BOARD A DIVERSE LEADERSHIP TEAM
AND A DIVERSE EMPLOYEE
POPULATION THAT BEST SERVES.
OUR CUSTOMERS AND THE COMMUNITY
THE IN WHICH WE BUSINESS. FOR
THE THREE WE ARE HONORED TO
STAND IN SUPPORT OF ASSEMBLY
BILL NINE SEVENTY NINE. THANK
YOU. OUR SECOND ONE IS IN
SUPPORT IS BUT JEAN BY WHO WILL
BE TESTIFYING OVER THE VOTE FOR
OVER THE PHONE MODERATOR CAN
YOU PLEASE CONNECT US. WITH
MISTER GAY. EIGHT YES I'M HERE
CAN YOU HEAR ME CHAIR OF THE
MALL YES THANK YOU. HELLO YES I
CAN HEAR YOU THANK YOU YEAH.
THANK YOU SO MY NAME IS BUCKY
AND I'M REPRESENTING HERE
APAPA. ASIAN PACIFIC ISLAND
PACIFIC FAIR. A NONPARTISAN
NONPROFIT GROUPS WORKING TO
INCREASE APA LEADERSHIP IN THE
CIVIC AND PRIVATE SECTOR. I'M
ALSO HERE SPEAKING ON BEHALF OF
NEARLY TWENTY EIGHTEEN AMERICAN
BUSINESS AND COMMUNITY GROUPS
SUPPORTING EIGHTY NINE SEVEN
NOT. I COME FROM SILICON VALLEY
WHERE WERE FOR THIRTY FIVE
YEARS. BEFORE RETIRING AS A
VICE PRESIDENT AT CISCO
SYSTEMS. SINCE THEN I'VE SPENT
MUCH OF MY TIME RESEARCHING THE
CORPORATE GLASS CEILING FOR
MINORITY MEN AND MINORITY WOMEN.
MY RESEARCH HAS FOUND THAT IN
THE LAST DECADE THEY'VE BEEN
VERY LITTLE PROGRESS HAD BEEN
MADE TO DIVERSIFY THE HIGHER
LEVELS OF LEADERSHIP IN THE
PAST. DESPITE BEST EFFORTS OF
THE CORPORATE SECTOR. MY REVIEW
OF UC DATING CALIFORNIA SHOWS
THAT WHITE MEN AND WOMEN ARE
NOW ONLY 46% OBSTRUCTION
WORKFORCE BUT STILL REPRESENTS
71% OF ALL EXECUTIVES IN TWENTY
P. SO THE DATE IS CLEAR.
EXISTING STRATEGIES TO
DIVERSIFY HAVE FAILED. THAT'S
WHY IT'S TIME FOR A NEW
APPROACH TO CELEBRATE
LEADERSHIP TO ENGAGE AT THE
HIGHEST LEVELS IT'S PRIVATE
CALIFORNIA REQUIRES SEATS IN
THE BOARDROOM OR IT'S UNDER
REPRESENTED COMMUNITIES.
MEETINGS REPRESENT 67% OF
CALIFORNIA POPULATION. BUT HOLD
ONLY 14% OF FORTUNE ONE
THOUSAND BOARD SEATS IN
CALIFORNIA. MY ANALYSIS FOUND
THAT EIGHTY NINE THIRTY NINE
WILL DOUBLE THAT NUMBER. IT HAD
A HUNDRED FIFTY FIVE MINORITY
BOARD MEMBERS TO FORTY ONE
THOUSAND BOARDS. NOW SOME WORRY
THAT FINDING QUALIFIED MINORITY
RECORDS WOULD BE HARD. BUT I
REFUSE TO BELIEVE IT CAN'T FIND
A HUNDRED FIFTY FIVE HIGHLY
QUALIFIED AND IT'S ON THE
TWENTY THOUSAND MINORITY
EXECUTIVES IN CALIFORNIA. AND
IT SHOULD ONLY BE 28% OF
CALIFORNIA FORTY ONE THOUSAND
GOLD SEATS. WE DO NOT THINK
THAT 22% 20% IS TOO MUCH TO
ASK- CORPORATE LEADERS TO
BETTER REPRESENT 67% OF ALL
CALIFORNIANS IN
UNDERREPRESENTED COMMUNITIES.
SO THANK YOU FOR YOUR TIME AND
HOW WE SUPPORT EIGHTY NINE
SEVEN NINE. THANK YOU MISTER
GATE MODERATOR DO WE HAVE ANY
ADDITIONAL CALLERS IN THE QUEUE
WHO WOULD LIKE TO TESTIFY IN
SUPPORT OF AB NINE SEVEN NINE.
HE. ADAM CHAIR. WE DO HAVE
ADDITIONAL WITNESSES I DO NOT
BELIEVE THERE ARE A OTHER TO
SPEAK IN SUPPORT GREAT THANK
YOUSO MUCH WE WILL MOVE TO THE
OPPOSITION WITNESSES AND- I
REMIND THE OPPOSITION WITNESSES
THAT THEY HAVE TWO MINUTES EACH
OUR FIRST STEP FOR THE FIRST
THE FIRST PERSON TESTIFYING IN
OPPOSITION IS. MODERATOR WILL
YOU PLEASE CONNECT US WITH
BISHOP WHO WAS TESTIFYING IN
OPPOSITION OF NINE SEVEN NINE.
THIS GOOD AFTERNOON HI THIS IS
KATE BISHOP I'M HERE IN
OPPOSITION TO AB NINE SEVEN
NINE. BY WAY OF BACKGROUND I'VE
BEEN PRACTICING CORPORATE AND
SECURITIES LAW IN CALIFORNIA
FOR NEARLY FORTY YEARS. I
PREVIOUSLY SERVED AS
COMMISSIONER OF CORPORATIONS
FOR THE STATE OF CALIFORNIA
THEY CURRENTLY TEACH SECURITIES
REGULATION AT THE UNIVERSITY OF
CALIFORNIA IRVINE SCHOOL OF
LAW. I AM A COOPER THE LEADING
TREATISES ON CALIFORNIA AND
NEVADA CORPORATE LAW. AND A
PRACTICE. AND THE I AM A
PRACTICE CONSULTANT TO THE
LEADING TREATISE ON CALIFORNIA
SECURITIES LAW. I'M SPEAKING IN
MY INDIVIDUAL CAPACITY AND NOT
AND NOT ON BEHALF OF ANYONE
ELSE. I BELIEVE THAT IT IS
IMPORTANT FOR THE COMMITTEE TO
UNDERSTAND THAT AB. NINE SEVEN
NINE WILL HAVE SIGNIFICANT. AND
PERHAPS ON A TEN CONSEQUENCES
FOR EXAMPLE IT WILL. AGAINST
MALE AND NON BY NAY POOR
CANDIDATE IN FAVOR OF FEMALE.
MINORITY BOARD CANDIDATES WE
WILL ALSO PRIVILEGE TRANS
GENDER FEMALES OVER OTHER
FEMALES. IN MY OPINION AB NINE
SEVEN NINE VIOLATE THE EQUAL
PROTECTION CLAUSES OF THE US
AND CALIFORNIA CONSTITUTIONS. I
ALSO BELIEVE THAT THE BILL
WOULD VIOLATE THE COMMERCE
CLAUSE OF THE US CONSTITUTION.
THE BILL RELIES ON DIRECTORS
SELF IDENTIFICATION AS A MEMBER
OF AN UNDERREPRESENTED
COMMUNITY WHICH IS DEFINED AS
RACE. ETHNICITY AND CERTAIN
GENDER RELATED CHARACTERISTICS
THIS IS PROBLEMATICAL PRINT
NUMBER OF REASONS FOR EXAMPLE
CAN. ITSELF IDENTIFICATION BE
ENTIRELY SUBJECTIVE WE ARE ALL
FAMILIAR WITH RECENT
CONTROVERSIES INVOLVING
CHALLENGES TO INDIVIDUALS
CLAIMING TO BE AFRICAN AMERICAN
OR NATIVE AMERICAN WITH LITTLE
OR NO EVIDENCE TO SUBSTANTIATE.
THOSE CLAIMS THE RACIAL ETHNIC
CATEGORIES ARE ALSO HIGHLY
AMBIGUOUS FOR EXAMPLE SOMEONE
OF ARMENIAN DESCENT. CAN THEY
ADD THAT SELF IDENTIFY AS ASIAN
COULD FORMER SUPREME COURT
JUSTICE BENJAMIN CARDOZO. HELP
IDENTIFY AS HISPANIC. BECAUSE
HE WAS THE SEPHARDIC JEWS.
PARMON OF CELL IDENTIFIED ALL
REYES A MA'AM ISSUE BECAUSE IT
INVOLVES GOVERNMENT COMPELLED
SPEECH. IN CONCLUSION I BELIEVE
THAT AB NINE SEVEN NINE IS
DIVISIVE ARBITRARY AND
UNCONSTITUTIONAL AND I URGE YOU
TO VOTE. THANK YOU. THANK YOU
WE DON'T HAVE ANY- OTHER
SCHEDULED WITNESSES IN UP TO
FIND OPPOSITION BUT MODERATE OR
DO WE HAVE ANY CALLERS WHO
WOULD LIKE TO TESTIFY IN
OPPOSITION OF AB NINE SEVEN
NINE. MANAGER WE DO APOLOGIZE
WE DO HAVE THREE ADDITIONAL
PEOPLE WHO WISH TO SPEAK IN
SUPPORT OF THIS BILL- IF YOU
LIKE WE CAN TRAIN WE CAN START
WITH THEM NOW. OR WE CAN START
WITH THE OPPOSITION. AT THAT'S
FINE WE CAN START WITH THOSE IN
SUPPORT AND THEN MOVED TO THE
OPPOSITION AND JUST AS A
REMINDER FOR ALL THE COLORS WE
JUST WOULD LIKE TO HAVE YOU
STATE YOUR NAME YOUR AND YOUR
AFFILIATION AND POSITION NO
COMMENTS PLEASE. WE'RE NOW
GOING TO GO TO LINE TWO FORTY
ONE PLEASE GO AHEAD. GOOD
AFTERNOON THIS IS JUSTIN HIGHER
ON BEHALF OF THE SILICON VALLEY
LEADERSHIP GROUP ARE PROUD TO
SUPPORT THE BILL THANK YOU SO
MUCH. THANK YOU. LINE. TWO
THIRTY THREE. MY IN GROUND ACLU
OF CALIFORNIA AND SUPPORT THANK
YOU THANK YOU. LINE. TWO FORTY
SIX. GOOD AFTERNOON EMILY
PAPPAS WOULD NEED A LOT HAPPENS
IN ASSOCIATES FOR HP INK AND
PROPER PORT THANK YOU THANK YOU.
THANK YOU AND NOW MADAM CHAIR
WILL ASK FOR ANYONE THAT WISHES
TO SPEAK IN OPPOSITION AT THIS
TIME PLEASE PRESS ONE THEN ZERO
PRESS ONE. IF YOU WISH TO SPEAK
IN OPPOSITION. AND MADAM CHAIR
THERE IS NOBODY TO SPEAK. OKAY
WELL SO WITH THAT WE WILL CLOSE
A PUBLIC COMMENT TO AND MEMBERS
DO WE HAVE ANY. QUESTIONS OR-COMMENTS WE DO HAVE A MOTION
AND A SECOND. ANY ADDITIONAL
QUESTIONS OR COMMENTS. IRATE
CNN THANK YOU AS A MEMBER
HOLDEN AYE FOR BRINGING THIS
FORWARD I KNOW THAT THERE ARE A
LOT OF PIECES THAT WE'VE
LEARNED ABOUT- DIVERSE TO FIND
CORPORATE BOARDS AND CERTAINLY
LAST YEAR'S BILL TO DO SO- ON
THE GENDER FRONT TO- HAS TAUGHT
US A LOT SO I HOPE THAT AND
THAT THE THAT THE GROUP WORKING
ON THIS WILL ALSO LOOK TO WHAT
HAS AND HAS NOT HAPPENED- ON
THE GENDER FRONT. AND TO THE
OPPOSITION'S- POINTS AT ALL OF
THAT IS BEING LITIGATED IN THE
COURTS NOW AND I'M SIR AND-
THAT TO AT THE GROUP IN THE
COALITION SUPPORTING- WILL
CONTINUE TO LOOK AT THAT AS A
BASIS TO ENSURE THAT WE DO
ACHIEVE DIVERSITY ON ALL BOARDS
SO THANK YOU- WITH THAT WE
HAVE- DO PASSED TO THE ASSEMBLY
FLOOR. AND ONE CAN WE PLEASE
CALL. US WOULD YOU LIKE TO
CLOSE. THANK YOU RIGHT. I JUST
US AYE VOTE BUT I WOULD. NOTE
THAT. WE HAVE ADDED OF FINDINGS
TO THIS BILL SO THAT IT'S
CLEARLY. DISTINGUISHING THE
DISPARITY. IN TERMS OF
QUANTITATIVELY- WHERE. PEOPLE
OF COLOR HER NOT. BEING
REPRESENTED AT THE BOARD LEVEL
SO- I THINK THAT WE ARE.
PATTERN THIS BILL AFTER- EIGHT
TWENTY SIX. AND SO. WE'RE VERY
HOPEFUL. AND I RESPECTFULLY
APPROVAL. THANK YOU ASSEMBLY
MEMBER HOLDEN SO WITH THAT WE
DO HAVE A MOTION AND SECOND AND
SO COULD WE PLEASE CALL THE-
ROLL. ASSEMBLY BILL NINE
SEVENTY NINE. MOTION WAS MADE
BY BAUER K. HAND SECONDED BY
WEBER THE MOTION IS TO PASS TO
THE ASSEMBLY FLOOR LAMONT THANK
LIMON HI GEN. CHEN NOT VOTING
POWER QUE HAN. OKAY HANNAH HI
BURKE. I CERVANTES CERVANTES
FIVE AWAY NOT VOTING AWAY NOT
VOTING. YEAH YEAH FONG NO.
GABRIEL GET REAL AYE GRAYSON-
GRAYSON AYE STONE DON I WEBER
WEBER ALL RIGHT WICKS. BILL HAD
EIGHT VOTES THE BILL HAS EIGHT
VOTES IT DOES MOVE FORWARD ON
TO THE ASSEMBLY THANK YOU MA'AM
VERY MUCH DESIGNED FOR HOLDEN.
SO NEXT IS THE BILL SB. EIGHT
ONE NINE AUTHORED BY THE SENATE
BUDGET COMMITTEE AND PRESENT BY
ASSEMBLY MEMBER STONE. THANK
YOU SOME NUMBERS DOWN THANK YOU
MADAM CHAIR I HAVE THE DISTINCT
PLEASURE OF. SPEAKING FOR OR
PRESENTING AND THIS IS A SENATE
BILL S. SENATE. BANKING BILL
BUT ACTUALLY THIS IS YOUR
EFFORTS MADAM CHAIR THAT I GET
TO PRESENT HERE AND WE HAVE
REALLY BEFORE US RIGHT NOW. AND
OPPORTUNITY TO DO SOMETHING.
FOR CONSUMERS THAT IS TRUE ON.
AND WITH THE FOR GOVERNMENT
HAVING ST'S BACKED SO MUCH FROM
ITS OBLIGATIONS TO CONSUMERS
THE STATE'S ARE INDEED HAVING
TO STEP IN AND THIS THIS
COMMITTEE THROUGH TEARS
LEADERSHIP HAS HELD HEARINGS.
ON CREATE A HOW WE CREATE IN
CALIFORNIA THE BEST PROTECTION
FINANCIAL PROTECTION FOR
CALIFORNIA CONSUMERS THAT WE
CAN'T ESPECIALLY IN LIGHT OF
FEDERAL FAILURES. THAT'S REALLY
WHAT THIS BILL IS TODAY SO I'M
PRESENTING SB EIGHT ONE NINE ON
BEHALF SENATE BUDGET COMMITTEE.
AND IT IS THE PRODUCT OF
EIGHTEEN MONTHS OF WORK AND
ACTUALLY SOME THAT GO QUITE
BEYOND THAT IT REPRESENTS AN
AGREEMENT BETWEEN THE SOMEBODY
THE SENATE AND THE GOVERNOR ON
THE PROPOSED ENHANCEMENT OF THE
STATE FINANCIAL REGULATOR.
DEPARTMENT OF BUSINESS
OVERSIGHT. I'D LIKE TO THANK
THE ASSEMBLY BUDGET AND SENATE
BUDGET COMMITTEES AND THE
BANKING COMMITTEES BOTH HOUSES
FOR WORKING ON THIS THIS IS
SOMETHING THAT I ALSO HAVE BEEN
A PART OF AND AM VERY
INTERESTED IN. BUT WE CANNOT
UNDERSCORE ENOUGH THE ROLE THAT
ARE CHAIR HAS PLAYED IN GETTING
US TO THIS POINT. AND FROM MY
VIEW I'M NOT SURE GOES FAR
ENOUGH I'M NOT SURE THAT THAT
YOU NECESSARILY CREATES THE
ENVIRONMENT THAT WE WOULD HAVE
HOPED AND I KNOW THAT THE WHAT
THE CHAIR HAD SET UP BUT
SOMETIMES WE HAVE TO TAKE A
BOLD STEP IN A STEP THAT IS
BEFORE US AND THAT'S WHAT'S
BEFORE US TODAY IT IS A
COLLECTION OF A LOT OF TIME AND
EFFORT TO NEGOTIATE SOMETHING
REALLY TRULY SUBSTANTIAL. SO
THE CHANGE THE ADMINISTRATION
BACK IN JANUARY INTRODUCED A
PROPOSED BUDGET TRAILER
LANGUAGE AND IT'S GONE THROUGH
MULTIPLE ITERATIONS. AND
FORTUNATELY IT'S GONE THROUGH
THOSE ITERATIONS. UNDER THAT
THE GUIDANCE OF THIS COMMITTEE
BOTH ITS CHIEF CONSULTANTS AND
CERTAINLY IT'S CHAIR WHO PLAYED
A VERY STRONG ROLE IN THIS. AND
WHAT THIS REALLY DOES NOW. IS
GIVE DEPARTMENT BUSINESS
OVERSIGHT SOME REAL TOOLS TO BE
ABLE TO ADDRESS THAT. THE LACK
OF CONSUMER PROTECTION.
FINANCIAL PROTECTION THERE ARE
FORTY. IS THEY DIDN'T DO IT
BECAUSE OF SOME CONCERNS THAT
HAVE BEEN RAISED AND THEN
RAISED BY MEMBERS OF THIS HOUSE
THE AMENDMENTS THAT HAVE BEEN
TAKEN AS WE'RE MOVING FORWARD
PUT SOME SUNSET REVIEW ON THE
VIOS AFFORDING. AND MAKE SURE
THAT WE KEEP THE LEGISLATURE
INFORMED AND INVOLVED IN THAT
PROCESS THROUGH OUR OVERSIGHT
PROCESS AND I'M HOPING THAT AS
WE LEARN AND AS WE SEE WHAT DVO
DOES THAT WILL BUILD THAT
RELATIONSHIP AND THAT TRUST SO
THAT WE CAN DO OVERSIGHT. BUT
WE ALSO ARE NOT GOING TO BE
INTERFERING WITH THE SOLID
ABILITY OF AN EXECUTIVE BRANCH
AGENCY TO DO THE KINDS OF
ENFORCEMENT THAT WE WOULD
EXPECT. SO WE NEED TO THEN THIS
THIS ALSO BILL ALSO
CONTEMPLATES THAT SOME OF. THE
STEPS THAT WILL HAVE TO BE
TAKEN OR GOING TO NEED TO BE
FUNDED. AND OVER THAN THE YEARS
THROUGH THIS ANALYSIS WE'RE
GONNA HAVE TO MAKE SURE THAT
WE'RE PROVIDING RESOURCES TO
DVO AND WE WILL BE DOING THAT.
THROUGH THE THROUGH THE BUDGET
PROCESS. AND THIS BILL CONTAINS
ENHANCED REPORTING REQUIREMENTS
OF DVO INCLUDING ANNUAL
HEARINGS IN WHICH THE
COMMISSIONER WILL TESTIFY
BEFORE THIS COMMITTEE. HE'LL
HAVE TO COME TO US AND EXPLAIN
WHAT HOW THIS IS WORKING AND
ANSWER OUR QUESTIONS THESE
OVERSIGHTS ARE SOME OF THE
THINGS THAT NOW HAVE BEEN BUILT
INTO THIS PROCESS IN HAVE BEEN
BUILT IN. BASED ON A LOT OF.
ASSEMBLY MEMBER CONCERNS THAT
HAVE BEEN RAISED. BUT WE CAN'T
FORGET THE PRIMARY. FOCUS OF
WHAT THIS BILL LISTEN THAT IS
THE PROTECTION OF CONSUMERS
ACROSS CALIFORNIA. AND THE
OPPORTUNITY THAT WE HAVE RIGHT
NOW BEFORE US TO BUILD THE
STRONG ENOUGH STRUCTURE THE
BEST STRUCTURE THAT WE POSSIBLY
CAN. IN ORDER TO PROVIDE THAT
AVENUE RELIEF FOR CONSUMERS AS
WE KNOW THROUGH HEARINGS HERE.
THEY THE PREVIOUS CFPB WHICH IS
NOW MOSTLY CREDITED AT THE
FEDERAL LEVEL WAS PART OF TWO
PRONG APPROACH IS THE TWIN
PEAKS THEY CALL IT IN ONE. IS
HAVE AN INDUSTRY FACING
ORGANIZATION WHICH DPO DOES AT
THIS POINT THE OTHER WHICH IS
WHAT THIS BILL IS REALLY ABOUT
IS THE CONSUMER FACING. P. THAT
MAKE SURE THAT WE HAVE THE
RIGHT KINDS OF TOOLS TO GIVE
CONSUMERS THE OPPORTUNITY TO
OVERCOME THE CHALLENGES THAT
THEY HAVE FACED IN THE
FINANCIAL. ARENA IT'S NO IT'S
THIS IS NOT. NECESSARILY THE
SILVER BULLET. TO MAKE SURE
THAT WE'RE LOOKING AT THE BEST
WE CAN BUT IT IS INCREDIBLY
IMPORTANT START DOWN THAT PATH
AND WITH WHAT'S BEEN BUILT IN
THE OVERSIGHT THAT WE HAVE IN
THE REPORTING BACK TO
LEGISLATURE IN THE PROCESSES
THAT HAVE BEEN BUILT INTO THIS
BILL. WE DO HAVE THAT
OPPORTUNITY TO HAVE THE
INTERACTIONS WITH THE
ADMINISTRATION AND MAKE SURE
THAT THEY ARE IMPLEMENTING TO
THE STANDARDS THAT THIS
LEGISLATURE WANTS TO STEP
FORWARD. TESTIFYING IN SUPPORT
IS SUSAN SUZANNE MARTINDALE
FROM CONSUMER REPORTS. AND I
KNOW THAT DEPARTMENT BUSINESS
OVERSIGHT INFORMATIVE FINANCE
OR AVAILABLE TO ANSWER ANY
TECHNICAL QUESTIONS AND WITHOUT
MEMBERS. I ASK FOR YOUR ITEMS.
THANK YOU ASSEMBLY MEMBER STONE
WE WILL AND MOVED TO OUR
WITNESS IN SUPPORT OF SB EIGHT
ONE NINE SUZANNE MARTINDALE.
WHO IS OVER THE PHONE HE THANK
YOU VERY MUCH KAREN MEMBERS
BEGAN MARTIN DALE I WITH
CONSUMER REPORTS IN STRONG
SUPPORT OF SB EIGHT ONE NINE
AND IT'S ASSEMBLY COMPANION IF
SOMEBODY TOLD YOU CAN FIFTY
FOUR AUGMENT- THE DEPARTMENT OF
BUSINESS OVERSIGHT AND TURN IT
INTO THE DEPARTMENT OF
FINANCIAL PROTECTION AND
INNOVATION- ASSEMBLY MEMBER
STONE FROM OUR EYES- VERY
WONDERFUL YOU KNOW WIDE EFFORT
IPHONE PORTRAIT THE REALLY
BUILD UP A MORE CONSUMER FACING
FUNCTION TO THE VERY CRUCIAL
REGULATOR- THAT YOU CAN CURRENT
LAW HOW CAN KEEP MEAL IN
NUMERATOR FOR USE IN CERTAIN
STATUTES IN THE FINANCIAL CODE.
BUT IT IS A FACT LIKE A HEALTH
PLAN A FOUNDATION BECAUSE THE
CURRENT LAW IS SILENT ON
WHETHER AS A GENERAL MATTER
THIS DEPARTMENT HAS SUBJECT
MATTER JURISDICTION OVER
PROVIDERS OF FINANCIAL PRODUCTS
SERVICES- YOU FIND THAT A LOT.
IN A OF A QUANDARY. A NEW. ON
THE- THAT KIND OF WALK AND
TALKED WHAT LIKE IF YOU TO COME
HAS SOME. CONSIDERABLE BUT
THERE FOR WORK WHETHER THE
HAPPEN TO BE A FAT YOU TO PUT
PEOPLE THREE OR FOUR. FOUR TO
ENDED AND BUT WITH ON AS A
AGREE. I THINK COMPLAINTS FROM
PEOPLE ARE UNDER. STRUGGLING IN
LIGHT OF KOBE ALL THE CASE THE
THEY FEEL THEY DON'T HAVE
AUTHORITY TO ACT ON COMPLAINTS
FROM PEOPLE WHO ARE PLEADING
WITH THEM FOR HELP. OUGHT TO BE
A VERY IMPORTANT THAT WE TAKE
THAT NOW PARTICULARLY NOW I'M
GIVEN THE ECONOMIC UNCERTAINTY
AROUND A LITTLE BIT. WE SURE
DI AGENCIES HAVE TO PROVIDE
VERY REGULATORY ENFORCEMENT
AUTHORITIES WHERE NEEDED WE'RE
CURRENTLY LACKING AND THAT ALSO
HAVE THE RESOURCES TO DO
OUTREACH TO COMMUNITIES. TO
REALLY BE A TRANSPARENT AND
PUBLIC FACING- LOCATIONS THE
PEOPLE KNOW WHERE TO GO BUT
WHEN A CONSTITUENT CALLED
LEGISLATIVE OFFICE AND HAVE A
PROBLEM FINANCIAL PRODUCTS BE
NO BECAUSE SOME OF THE FBI
BECAUSE THEY CAN TAKE ACTION.
TO PROTECT COMMUNITIES I SHOULD
MENTION THAT HAVE A VERY BROAD
BASED STRONG SUPPORT FROM A
WIDE WIDE COALITION OF GROUPS
THAT REPRESENT CONSUMERS.
COMMUNITIES OF ALL STRIPES
DON'T FALL BUSINESSES ARE YOU
OFTENTIMES MOLDED A FUNDRAISER
BASICALLY COMPLETE WORK WHEN
DEALING WITH A COMPLEX MARKET
PLACE SO FOR ALL THESE REASONS.
WE STRONGLY SUPPORT AND I ALSO
WANT TO EXTEND OUR YOU KNOW MY-
GRATITUDE OUT TO YOU I TRULY-MON FOR YOUR INCREDIBLE
LEADERSHIP THIS ENTIRE SESSION
IN TACKLING BUT ARE VERY VERY
COMPLEX ISSUES THAT COME BEFORE
BANKING. AND IN PARTICULAR YOUR
WORK ON THE TOPIC THAT WE WOULD
NOT. BE HERE WITHOUT YOU THANK
YOU VERY MUCH. THANK YOU THANK
FOR THE KIND CALM. MODERATOR DO
WE HAVE ANY. CALL IN THE KEY
WHO WITH TO TEST IN THE- OF. SB
EIGHT ONE NINE. WE DO NOT CHAIR
AGAIN LADIES AND IF DO WISH TO
SPEAK IN SUPPORT PLEASE PRESS
ONE THEN ZERO AT THIS TIME
PRESS ONE ZERO AT THIS TIME.
AND WILL NOW HEAR FROM LINE TO
TWENTY THREE PLEASE GO AHEAD
AND JUST A REMINDER WILL TAKE
MANY LEADING TRADE FIELD NAME
AFFILIATION AND SUPPORT
POSITION. OR. YOU MEDICARE
ANDREW AND WE WHICH ARE YOUR
ENTRIES WALDRON LYING ON BEHALF
OF THE FINE THE FOLLOWING
CLIENTS IN SUPPORT SB EIGHT ONE
NINE AND AB EIGHTEEN SIXTY
FOUR. THE OFFICE OF CAT. LOS
ANGELES CITY ATTORNEY MIKE
FEWER LOS ANGELES MAYOR ERIC
GARCETTI ALL IN SUPPORT. THANK
YOU. LINE TWO FORTY TWO PLEASE
GO AHEAD. GOOD AFTERNOON.
SCHERING REPAIR THE DIRECTOR OF
LITIGATION AND TALK ON- AT THE
PUBLIC HEARING ORANGE CONTY
I'M CALLING AT THE PORT AT THE
EIGHT ONE NINE THE DEPARTMENT'S
FINANCIAL. AND INNOVATION RIGHT
NOW MORE THAN EVER. BEING WITH
THE FACT THAT ECONOMIC
CHALLENGES NOW. YOU'RE YOU'RE
WELCOME THANK YOU. MIND. TO
TWENTY SIX. THANK YOU GOOD
AFTERNOON ONES OPEN. GOOD
AFTERNOON TERM MEMBERS CALTRAIN
ON BEHALF OF ENTERPRISE
POSSIBLE LANDING CEMETERY THE
CALIFORNIA ELECTION CALIFORNIA
IN SUPPORT THANK YOU. NINE TWO
FOUR SEVEN TWO FORTY SEVEN YOUR
LINE IS OPEN. YES GOOD
AFTERNOON MADAM CHAIR AND
MEMBERS ROBERT CARRILLO
EXECUTIVE DIRECTOR AT THE
CONSUMER FEDERATION OF
CALIFORNIA IN STRONG SUPPORT
AND WITH PROFOUND GRATITUDE TO
YOU AND THE OTHER STAFF AND
MEMBERS TO OR KILL CAR THE
CRITICALLY ISSUE THANK YOU.
THANK YOU. LINE TWO ZERO NINE
PLEASE GO AHEAD. THANK YOU
MADAM CHAIR IT'S RICHARD
CORDRAY THE FORMER DIRECTOR OF
THE U. S. CONSUMER FINANCIAL
PROTECTION BUREAU- YOU WILL
RECALL NO DOUBT AS I DO MY
TESTIFYING IN FRONT OF THE SAME
COMMITTEE IN MARCH OF TWENTY
NINETEEN SO ALMOST EIGHTEEN
MONTHS AGO AS WE GOT UNDER WAY
WITH THIS EFFORT- I WANT TO
ECHO SUDAN'S COMMENT IN.
ADMIRING YOUR TREMENDOUS
PATIENCE AND PERSISTENCE AND
PERSEVERANCE THANK THAT RINGING
US TO WHERE WE ARE TODAY- AND I
ALSO WANTED TO SAY THAT THE
NEGOTIATIONS OVER THIS BILL
HAVE BEEN EFFECTIVE AT
NEUTRALIZING OPPOSITION AS WELL
AS- UNDERSCORING THE STRONG
SUPPORT FROM A BROAD GROUP OF
COAL ABOUT CONSUMER BANKING.
SMALL BUSINESS GROUPS. THANK
YOU. MINE TOO TWENTY FIVE
PLEASE GO AHEAD. THANK YOU
CHAIR MEMBERS MY NAME IS KATE
BERMAN FOR THE LOW INCOME
CONSUMER COALITION I WANT TO
THANK YOU MADAM CHAIR CLEAR
YEARS OF LEADERSHIP ON THIS
BILL AS CHAIR OF THE COMMITTEE.
THANK YOU. BY. TWO THIRTY
EIGHT. THANK YOU THIS IS CLARK
JOHNSON ROBERT WITH THE
UNIVERSITY OF CALIFORNIAIRVINE
CONSUMER LAW CLINIC AND ON
BEHALF OF OUR LOW INCOME
CONSUMER CLIMATE CLIENTS- WERE
IN SUPPORT OF SB EIGHT ONE
NINE. THANK YOU. AND AGAIN
LADIES AND GENTLEMEN AND ANYONE
ELSE WHO WISHES TO SPEAK IN
SUPPORT PLEASE PRESS ONE AND
ZERO AT THIS TIME. WE HAVE A
MOTION MADAM AND A SECOND. SO
NOW WE HAVE A MOTION THE SECOND
NOW WE WILL TAKE OPPOSITION
WITNESSES I'LL WE REMIND THE
WITNESSES THAT YOU HAVE TWO
MINUTES EACH OUR FIRST WITNESS
IN OPPOSITION TESTIFYING OVER
THE PHONE AT PLEASE CONNECT US
TO MIGHT BALOCH WHO WILL BE
TESTIFYING AGAINST SENATE BILL.
EIGHT ONE NINE. THANK YOU MADAM
CHAIR IT IS MIKE BELOW SPEAKING
IN OPPOSITION ON BEHALF OF THE
CALIFORNIA NEW CAR DEALERS
ASSOCIATION. I WANT TO THANK
YOU AND THE CHIEF CONSULTANT IN
THE DEPARTMENT FOR THEIR
GENEROSITY AND MEETING WITH US.
WE'VE BEEN TALKING TO THEM FOR
MANY MONTHS ABOUT THE POTENTIAL
APPLICABILITY OF THIS. BUT
BUILT TO GO DEALERS- WE ARE
EXEMPT EXPRESSLY EXEMPT FROM
DODD FRANK. AND WHEN YOU READ
THE- DANCE LANGUAGE CREATING
THIS NEW DEPARTMENT AND NEW
FUNCTION. YOU KNOW YOU SEE
PAGES AND PAGES THAT ARE ARE
VIRTUALLY IDENTICAL TO DODD
FRANK LANGUAGE BUT NOT BE
EXEMPTION. FOR QUALITY LAWYERS.
I DEALER ARE ARE TYPICALLY
LICENSE TO SELL AND- SERVICE WE-
BY THE DMV AND BY THE BUREAU OF
AUTOMOTIVE REPAIR- BUT IT'S NOT
AT ALL CLEAR. THAT THE LANGUAGE
WHICH EXEMPTS- ENTITIES WHICH
ARE LICENSED BY ANOTHER AENCY
ACTING UNDER THE AUTHORITY OF
THAT OTHER LICENSE WHICH NOT AT
ALL CLEAR WHETHER THAT COVERS
THE TOTALITY OF CAR DEALER
OPERATIONS. SO WE HAVE ASKED
FOR CLARIFICATION ON THAT AND
WE'VE BEEN TOLD. THAT WELL WE
THINK YOU'RE MOSTLY EXEMPT OR
YOU REALLY PROBABLY AREN'T
GOING TO COME UNDER OUR
JURISDICTION SO WE'VE ASKED FOR
CLARIFICATION OF THAT IN THE
BILL. HOW DO YOU ARE ARE A
LITTLE SENSITIVE ON REGULATORY
ISSUES WE PRESENTLY HAVE
REGULATORS AS I INDICATED. IN
THE WORLD OF PALM MARKETING IS
EVOLVING RIGHT NOW FOR EXAMPLE
THE LEGISLATURE IS CONSIDERING
A BILL WHICH WOULD ALLOW A NEW
TYPE OF VANITY TOPS MARKET.
CARS WITH NO LICENSE OF ANY
SORT NO REGULATOR AT ALL. AND
THIS BILL WOULD IMPOSE A THIRD.
SO BECAUSE WE ARE EXEMPT FROM
DODD FRANK BECAUSE WE HAVE BEEN
TOLD THAT WE ARE. ALMOST
COMPLETELY EXEMPT WE'D LIKE TO
SEE IT CLARIFIED IN THE LAW.
AND FOR THAT WE ARE OPPOSED TO
ANALYZE THAT FRANK.
INCORPORATED I THANK YOU FOR
LISTENING. THANK YOU OUR
SECOND- WITNESS TESTIFYING IN
OPPOSITION WILL ALSO BE
TESTIFYING OVER THE PHONE-
MODERATOR PLEASE CONNECT US
WITH JOHN MOFFETT WHO WILL
TESTIFY. IN OPPOSITION. OF
SENATE BILL EIGHT ONE NINE.
MADAM CHAIRMAN OF THE CAN JOHN
ON OF THE CALIFORNIA FINANCIAL
SERVICE PROVIDERS IN OPPOSITION
TO SB EIGHT NINETEEN OUR
REGIONAL- POSITION ON THE BILL
WITH REPUBLICAN UNLESS AMENDED
BUT GIVEN THAT WE'RE PASSED THE
AMENDMENT DEADLINE. AND HERE IN
THE FIRST AND ONLY POLICY
COMMITTEE HEARING ON THIS BILL
WE AND WE UNFORTUNATELY MUST
OPPOSE SB EIGHT NINETEEN AS IT
IS CURRENTLY DRAFTED. AMBER
COMPANIES ARE STATE LICENSED
DEFERRED DEPOSIT TRANSACTION
LENDERS CURRENTLY REGULATED BY
BOTH THE FEDERAL AND STATE
GOVERNMENT INCLUDING THE
DEPARTMENT OF BUSINESS
OVERSIGHT. WE'RE PROUD OF THE
SERVICES WE PROVIDE ONLINE AND
HUNDREDS OF BRICK AND MORTAR
LOCATIONS THROUGHOUT THE STATE
AND OF OUR THOUSANDS OF
EMPLOYEES IN THE SERVICE THEY
PROVIDE TO OUR CUSTOMERS. LIKE
MANY OTHER ENTITIES IN THE
FINANCIAL INDUSTRY BECAUSE THE
NINETEEN CRISIS IS HAD A
TREMENDOUS IMPACT ON OUR
INDUSTRY LOW ACTIVITY IS DOWN
LARGELY BECAUSE OUR CUSTOMERS
ARE RESPONSIBLE BORROWERS. AND
ALSO BECAUSE WE IS COMPANIES TO
TIGHTEN OUR CRITERIA FOR NEW
LOANS. DURING THE SAME PERIOD
REPAYMENTS HAVE BEEN STEADY IN
OUR MEMBER COMPANIES HAVE MADE
IT A PRIORITY TO WORK WITH
THEIR CUSTOMERS ON EXISTING
LOANS. MANY OF EXTENDED DUE
DATES WITHOUT ANY ADDITIONAL
COSTS HAD SAID AT NO COST
PREPAYMENT PLANS HAVE WAIT TO
RETURN I DIDN'T FEES AND IN
SOME CASES WAIT REPAYMENT OF
THE DEBT ENTIRELY. ALL WITHOUT
THE DVL. OR OTHERS TELLING US
TO DO SO. READING IS BEING NOW.
WE PROPOSE DIFFERENT AND- THAT
WOULD HAVE PER. ADDITIONAL
CLARITY TO THE BILL
UNFORTUNATELY REACHED WE
RECEIVED NO RESPONSE FROM THE
DVO. BEYOND THE ANTI USE THE
AMBIGUITIES THAT REMAIN IN THE
BILL THE MOST RECENT AMENDMENTS
TO SP EIGHT NINETEEN EXAM
NUMEROUS ENTITIES FROM THE
REACHES OF DEEP. NEVER SO THE
MANITEX HADN'T EVERY EXISTING
LICENSING OF THE BBL EXCEPT FOR
TWO. INCLUDING MY MEMBER
COMPANIES. AS EXPRESSED BY
COMMISSIONER ALVAREZ AND PASSED
INFORMATION HEARING THE NEED
FOR THE BROAD NEW AUTHORITY
GRANTED IN THIS BILL IS TO
FULL. BLINDED ENSURE EQUAL
TREATMENT AND A LEVEL PLAYING
FIELD IN THE FINANCIAL MARKET
PLACE INTO THE NEED TO PROTECT
CONSUMERS AS EVIDENCED BY 40%
INCREASE. IN CONSUMER
COMPLAINTS DURING THE CALL THE
NINETEEN CRISIS. IF THIS IS THE
RATIONALE FOR THE PROPOSAL
THERE'S NO REASONABLE POLICY
RELATED BASIS TO IT. TO EXEMPT
ALL CURRENT LICENSEES BUT FOR
TWO. AND RESPONSIBILITY BOS
PRESS RELEASE REGARDING
INCREASED CONSUMER COMPLAINTS
SHE HAS PEACE OF MIND THE
PUBLIC RECORDS ACT REQUEST
ASKING FOR DETAILED BREAKDOWN
OF COMPLAINTS IN TWENTY
NINETEEN. THROUGH THE END OF
JULY TWENTY TWENTY. LAST WEEK
WE RECEIVED THAT DATA AND IT
DOES SHOW AN INCREASE IN
CONSUMER COMPLAINTS. BUT MOST
OF THOSE INCREASES ARE AGAINST
ENTITIES THAT ARE NOW EXEMPT
FROM THE BILL. FOR MY MEMBERS
OF THE HUNDREDS OF THOUSANDS OF
TRANSACTIONS CONDUCTED IN
CALIFORNIA LAST YEAR BY OUR
COMPANIES. DVO RECEIVED A TOTAL
OF THIRTY TWO COMPLAINTS. TO
THE END OF JULY TWENTY TWENTY
WHICH INCLUDES THE CURRENT CO
THAT NINETEEN CRISIS.
COMPLAINTS AGAINST DEFERRED
DEPOSIT TRANSACTIONS HAVE TOLD
FOUR. EXTRAPOLATED OUT TO THE
END OF TWENTY TWENTY WE'RE ON
TRACK TO SEE COMPLAINTS AGAINST
OUR MEMBER COMPANIES. DECREASED
BY ALMOST HALF. YEAH WITHOUT
RATIONALE OR EXPLANATION WE ARE
NOT EXEMPT FROM THIS BILL. SB
EIGHT NINETEEN CREATES A
COMPLEX AND CONFUSING
REGULATORY PUZZLE IN WHICH THE
LEGISLATURE IS GIVING AWAY AT
FORTY AND POLICY MAKING. THAT
WE BELIEVE SHOULD. IT SHOULD BE
PRESERVING FOR ITSELF. BE THAT
AS IT MAY IS OUR SINCE HOPE THE
BILL. WILL TAKE ACCOUNT
EXERCISE ITS- AUTHORITY. I A
GOING FORWARD BASIS AT THE
BUILDING. FOR THESE. WE'RE TO
S. EIGHT. AND ASK FOR YOUR
NOTEBOOK THANK YOU. THANK YOU
MISTER MOFFETT MODERATOR DO WE
HAVE ANY OTHER CALLERS WHO
WOULD LIKE TO TESTIFY IN
OPPOSITION OF EIGHT ONE NINE.
THANK YOU MADAM CHAIR FOR THOSE
OF YOU WISH TO SPEAK AT THIS
TIME PLEASE PRESS ONE NINE ZERO
PRESS ONE AND ZERO AT THIS TIME.
AND THE FIRST PERSON SPEAK IN
OPPOSITION WILL BE ALIGNED TO
FORTY NINE PLEASE GO AHEAD
PLEASE JUST NAME AFFILIATION
AND POSITION THANK YOU. YEAH
MAYBE WE ON BEHALF OF CARE
FINANCIAL IN OPPOSITION. THANK
YOU. THANK TO THIRTY NINE
PLEASE GO AHEAD. I'M NOT
INSURED MEMBERS DOMINIC
TOMORROW HERE ON BEHALF OF THE
BILL BUTTON ON MY MONITOR
OPPORTUNISTIC IN THE CALIFORNIA
MARKET IN MULTIPLE. IT IS
OPPOSED TO HIS FELLOW ASKED
WILL DRAFTED FROM REASONS
STATED IN THE MAIN BODY OF THE
OPPOSITION. NINE TO FORTY
EIGHT. ME JUST A MOMENT WANT TO
TWENTY PLEASE GO AHEAD. YES
THIS IS A MAJOR MAYES FROM
LANDMARK IN OPPOSITION. LINE
TWO FORTY EIGHT PLEASE GO AHEAD.
MADAM CHAIR MEMBERS PAUL THAT
PELTIER ON BEHALF OF CHECKING
CASH WE ARE ALSO IN OPPOSITE
SUPPORT TO MR OFFICE REMARKS.
THANK YOU NEXT. AND AGAIN
ANYONE WISHING TO SPEAK IN
OPPOSITION AT THIS TIME PLEASE
PRESS ONE ZERO. THE CHAIR WE
HAVE NO ONE ELSE THANK YOU AT
THIS TIME PLEASE CONTINUE THANK
YOU SO MUCH AND MEMBERS DO WE
HAVE ANY COMMENTS OR QUESTIONS.
WE HAVE VICE CHAIR CHEN WHO HAS
A QUESTION. THANK YOU MADAM
CHAIR- STRONG THANK YOU FOR
BRINGING THIS BILL TO OUR
ATTENTION- I HAD SOME QUESTIONS
DEALING WITH US IN THE
COMMENTS- PROBABLY OPPOSITION
SPECIFICALLY WITH THE RATIONAL
BEHIND EXEMPTING. SOME OF THE
LICENSEES BUT NOT THE ENTIRE-
UNIVERSES OF B. AND- WELL MUCH
MUCH OF THIS LANGUAGE HAS BEEN
MODELED AFTER DODD FRANK BUT I
THINK THE REGULATOR PART
BUSINESS OVERSIGHT AND IF WE IF
THIS PASSES SO DID DID YOU
AGENCY WANTS TO MAKE SURE. THAT
THEY HAVE THE ABILITY TO
REGULATE THE PARTS OF THE
INDUSTRY THAT HAVE PROVEN TO BE
ISSUES AND I KNOW WE HAVE FOLKS
FROM DVO ON THE LINE A LOT OF
THE THOSE PROVISIONS WERE DONE
BASED ON WHAT DVO HAS
IDENTIFIED THEY FEEL THEIR
NEEDS ARE. SO IF THE DEPARTMENT
HAS A COMMENT ON HOW YOU
CREATED THAT STRUCTURE THAT
MIGHT BE HELPFUL. IT'S CRUCIAL
TO THE DEPARTMENT BUSINESS EVER
SAY CAN YOU HEAR ME YES WE CAN.
HI CHRIS HOGAN THE CHIEF DEPUTY
COMMISSIONER AT THE DEPARTMENT
OF BUSINESS OVERSIGHT A
MAJORITY OF THE DEPARTMENT
EXISTING LIKING PETE ARE EXEMPT
FROM THIS PROPOSAL. HOWEVER I
HANDLE BREAKING P. THAT HAVE
LICENSURE PROGRAMS THAT ARE NOT
AS ROBUST AS THE OTHER
INVOLVED. ARE INCLUDED YEAH
THAT THEIR INCLUSION THAT.
WOULD ALLOW THE DEPARTMENT TO
USE STATE AUTHORIZED AUTHORITY
TO ENFORCE AGAINST UNFAIR
DECEPTIVE AND ABUSIVE BEHAVIOR
AND TO UTILIZE THAT THE CLEARLY
DRAWN REMEDY WITHIN THE STATE
LAW. ESSENTIALLY THIS WOULD
GIVE THE DPO MORE ROBUST
IMPORTS THE GRAVITY. FIFTEEN
PLASTIC STRUCTURES LACK. THANK
YOU ASSEMBLY MEMBER GRAYSON.
THANK YOU MEASURE OUT I DO HAVE
A QUESTION ON. THE ISSUE OF THE
NEW CAR DEALERS AND- WHAT IS IT
MEANT WHEN THEY SAY THEY ARE
MOSTLY EXEMPT. WHAT DOES THAT
ACTUALLY MEAN. PERHAPS WE CAN
AND DVO ANSWER THAT QUESTION
THAT I THINK THAT WOULD BE
APPROPRIATE SINCE THEY'RE THE
ONES WHO HAVE BEEN USING THAT
TERMINOLOGY. OKAY THANK YOU.
GREAT AGAIN THIS IS CRUCIAL TO
THE DEPARTMENT BUSINESS
OVERSIGHT OF THE COMMITTEE
ANALYSIS ON PAGE EIGHT- CAN GET
GOES INTO THE- DETAIL IN THIS
WEEK- I COULD GET OF THE
DEPARTMENT AND I'LL- WELL THE
NEW CARD. LETTERS THAT HAVE
BEEN. TO SIGNIFICANTLY IMPACT
NEW CAR DEALERS BUT- THE BILL
PROVIDES THAT LAKE CITY THEM
OTHER STATE DEPARTMENT EXEMPT
AS LONG AS THEY'RE ACTING
WITHINTHEIR LIKELY. WITH
ANOTHER STATE DEPARTMENT. THIS
IS OKAY WE THINK THAT NEW CAR
DEALERS ARE ALREADYARE COVERED
THEIR THAT THEIR LIFE BY THE
DMV- AND SO WE CONTINUE TO I'M
NOT NOT REALLY UNDERSTAND THE
REQUEST SUPPORT AMENDMENT- AND
I THINK THE COMMITTEE. ANALYSIS
GOES INTO IT AS WELL THANKS.
THANK MEMBERS ANY DISH QUESTION
ARE COMMON. CNN THANK YOU
SAMBHAR STONE FOR PRESENTING
THIS- AND I DO WANT THE
COMMITTEE TO KNOW THAT AND IN
THE CONVERSATIONS THAT HAVE
HAPPENED OVER THE LAST A YEAR
BUT REALLY THE LAST FEW WEEKS
IN TRYING TO FIND THE FINAL
PROPOSAL A LOT OF THE COMMENTS
THAT WERE MADE AT OUR LAST
HEARING WERE INCLUDED IN THIS.
IN ADDITION TO THE OVERSIGHT-
AND WANTING TO MAKE SURE THAT
THE LEGISLATURE HAD A VOICE-
THERE IS A SENSE OF FOR YOUR
SUNSET THEY'RE BOTH ON THE
BUDGET AND- A FROM A POLICY
PERSPECTIVE AS WELL- I THINK
THAT TO AND THIS PROPOSAL IS
NOT WHERE WE STARTED AS- WE CAN
PRETTY MUCH STAY FROM. EVERY
SINGLE BILL THAT'S BEING VOTED
ON AT THIS PARTICULAR MOMENT I
APPRECIATE HOW MUCH THIS
COMMITTEE HAS ENGAGED IN THIS
ISSUE THE FEEDBACK THAT HAS
BEEN GIVEN. TO ME TO THE
BANKING COMMITTEE TO D. B. L.
YOU KNOW TO THE SUPPORTERS IN
OPPOSITION IN THE END I THINK
HAVING A ROLE A MORE ROBUST-
DEPARTMENT OF BUSINESS
OVERSIGHT THAT WILL NOW BE D.
P. I. F. T. F. PA ONE OF THOSE
I CAN'T YEAH- HE IS GOING TO BE
THE RIGHT THING FOR CONSUMERS
AND FOR CONSUMERS IN ALL PARTS
OF OUR STATE. AND I THINK WE
ARE SEEING THAT AS IS EVIDENCED
BY THE FACT THAT YOU KNOW WE
HEAR A LOT ABOUT WHAT'S
EXEMPTS- WHAT'S NOT IN THE END
CONSUMERS HAVE A PLACE TO GO TO
IN CALIFORNIA AND I THINK THAT
THAT'S THE MOST IMPORTANT THING
AND IT IS OUR HOPE RIGHT THAT
WE WON'T HAVE A LOT OF PEOPLE
GO AND SEEK OUT ASSISTANCE FOR
WRONGDOING- AND SO I THINK
THAT- IN THE ABSENCE OF. AND
THAT WE DO WANT TO HAVE A
CONSUMER AGENCY THAT CAN BE
HELPFUL IN PROVIDING
INFORMATION- AND ADDITIONAL
FOLLOW UP TO ALL CONSUMERS IN
THE STATE OF CALIFORNIA-
PARTICULARLY ON FINANCIAL
SERVICES SO THANK YOU FOR
PRESENTING- I DO ALSO WANT TO
ACKNOWLEDGE THAT SB EIGHT
NINETEEN. HAS A COMPANION BILL
AB EIGHTEEN SIXTY FOUR THE
ASSEMBLY WILL ALSO BE SEEN IN
THE FUTURE WE HOPE THE ASSEMBLY
WILL BE SEEN IN THE FUTURE SO
WITH THAT WE HAVE A MOTION AND
A SECOND CAN WE PLEASE CALL THE
ROLE. OF SENATE BILL TAKE THE
MOTION WAS MADE BY MR GRAYSON
SECONDED BY MISS WEBER THE
MOTION IS THE PATH TO THE
ASSEMBLY FLOOR LAMONT HI LIMóN
I CAN'T GO CAN BARRICADE
BARRICADE HI BURKE. CERVANTES
CERVANTES ALL RIGHT AWAY NO
FEEL LIKE NO FONG ABOUT FROM NO
GABRIEL. GET ALL RIGHT GREAT.
GRAYSON I DON'T RIGHT STONE HI
WEBER. WEBER I WICKS. THE BILL
HAS SEVEN VOTE THE BILL HAS
SEVEN MOUNT VOTES IT HAS TO DO
PASSED TO THE ASSEMBLY FLOOR
THANK YOU VERY MUCH COMMITTEE
MEMBERS AND WITH THAT. EDGERRIN
ARE VERY FINAL COMMITTEE
HEARING THANK YOU.