GOOD AFTERNOON WELCOME TO THE
SUB COMMITTEE FOUR ON STATE
ADMINISTRATION. AT THIS HEARING
IS NOW IN SESSION I'LL ASK- THE
MEMBERS TO PLEASE COME DOWN TO
ROOM FOUR THREE SEVEN. I HAVE
BEEN ASKED TO READ SOME
DIRECTIONS REGARDING PUBLIC
pHEARING TO HELP INSURE THE
SAFETY OF EVERYONE HERE TODAY
WHILE ALLOWING FULL PUBLIC
ACCESS TO THE DISCUSSION. WE
ARE IN ROOM FOUR THREE SEVEN WE
ARE HAVING A PHYSICALLY DISTANT
IN PERSON HEARING. AT ROOM FOUR
THREE SEVEN CAN ONLY
ACCOMMODATE A FEW MEMBERS A
MINIMAL CONTINGENT OF STAFF AND
A LIMITED NUMBER OF THE PUBLIC%
AND MEDIA SO WE CAN KEEP. SIX
FEET OF SPACING. THERE ARE ALSO
STRICT PHYSICAL DISTANCE
PROTOCOLS FOR THE PUBLIC TO
ENTER AND LEAVE THE CAPITAL.
AND FOR THOSE HERE TODAY TO
MAKE PUBLIC COMMENT AT THE
APPROPRIATE TIME. I WILL
RESTATE THIS ONE PUBLIC COMMENT
BEGINS. BUT IF AT ANY BUT IF
ANY MEMBER OF THE PUBLIC IN THE
ROOM WISHES TO SPEAK. THEY WILL
RAISE THEIR HANDS AND I WILL
ASK THEM TO APPROACH. THE
MICROPHONE. WE ENCOURAGE. THANK
YOU ONE MOMENT HERE. I WOULD
ASK THE PUBLIC RESPECT FOR THE
GOAL DISTANCING AND NOT TOUCH
THE MICROPHONE YOU'LL HAVE ONE
MINUTE FOR PUBLIC COMMENT YOU
CAN EXIT THE HEARING ROOM ONCE
YOUR PUBLIC COMMENT IS DONE OR
RETURN TO YOUR SEAT BUT PLEASE
OBSERVE PHYSICAL DISTANCING
UPON LEAVING THE CAPITAL
INCLUDING LIMITED ELEVATOR
ELEVATOR USED TO ONE PERSON AT
A TIME. THE PANELISTS ON THE
AGENDA AND ELLIE- ARE APPEARING
REMOTELY USING ONLINE
TECHNOLOGY THERE WILL BE NO
VOTE IN THE COMMITTEE TODAY. ON
PUBLIC COMMENT WE ARE ACCEPTING
PUBLIC COMMENT AT THE END OF
THIS HEARING BOTH IN THE
HEARING ROOM. AND ON THE PHONE.
THE PHONE NUMBER TO CONNECT IS
ON THE COMMITTEE WEBSITE. AND
SHOULD BE ALSO ON THE SCREEN IF
YOU'RE WATCHING. OVER THE
INTERNET. THE NUMBER IS TOLL
FREE. EIGHT SEVEN SEVEN SIX
NINE TWO EIGHT NINE FIVE SEVEN.
THE PUBLIC ACCESS CODE IS FOUR
THREE SEVEN ONE THREE. ONE FIVE
IF YOU ENCOUNTER ANY PROBLEMS
PLEASE CONTACT THE ASSEMBLY
BUDGET COMMITTEE AT NINE ONE
SIX. THREE ONE NINE. TWO ZERO.
NINE NINE AND A STAFF MEMBER
WILL ASSIST YOU. WE ENCOURAGE
THE PUBLIC TO PROVIDE. WRITTEN
TESTIMONY BEFORE THE HEARING
PLEASE SEND YOUR WRITTEN
TESTIMONY TO BUDGET THE FOUR
THAT'S THE NUMBER FOUR AT THE
END. BUT IT'S A FOR AT ASM DOT
CA DOT GOP. WE HAVE TEN
DEPARTMENTS WITH FIFTEEN ISSUES
TO BE DISCUSSED TODAY. WE WILL
TAKE MEMBER QUESTIONS AFTER
EACH ISSUE WITH PUBLIC COMMENT
AT THE END OF THE HEARING. OUR
FIRST ISSUE TODAY IS THE
CALIFORNIA DEPARTMENT OF
INSURANCE BUDGET PROPOSALS. OUR
PANELISTS INCLUDE. JULIE ACROSS
FROM THE CALIFORNIA DEPARTMENT
OF INSURANCE. BRIAN WITH THE
FORD WITH ALEJO AND CHARLENE
MANNING WITH THE DEPARTMENT OF
FINANCE LET'S GET STARTED. AS
MISS CROSSING THE LINE. LET'S
START OVER LET'S CROSS I THINK
WE'RE HAVING SOME PROBLEMS WITH
YOUR AUDIO. CAN HAVE YOU COME
FROM ONE TO FIVE. ONE TWO THREE
FOUR FIVE GREAT THANK YOU MISS
CROSS WE CAN HEAR YOU NOW LET'S
GET STARTED. OKAY GREAT. SORRY
ABOUT THAT. ALL RIGHT MY NAME
IS JULIE ACROSS AND THE DEPUTY
COMMISSIONER OVER THE
ADMINISTRATION AND LICENSING
SERVICES BRANCH THANK YOU FOR
THE OPPORTUNITY TO PROVIDE A
BRIEF OVERVIEW OF OUR PROPOSALS
BEFORE YOU TODAY I'LL START
WITH OUR CONTINUATION OF
ENHANCE FRAUD INVESTIGATIONS IN
PREVENTION BUDGET CHANGE
PROPOSAL. CDI MONITORS AND
PROSECUTE SO HE CAN ACTIONS
ALSO REFERRED TO AS WELL AS A
LOWER CASES MR FILED UNDER THE
INSURANCE FRAUD PREVENTION ACT
PURSUANT TO CALIFORNIA
INSURANCE CODE. SECTION
EIGHTEEN SEVENTY ONE POINT
SEVEN. THIS STATUTE ANY
ASSESSMENTS AND FEES AWARDED
FOR THESE CASES. PAGE THE
GENERAL FUND. SAME STATUTE ALSO
PER FOR THE LEGISLATURE TO.
THESE FUNDS TO DECEIVE. TO BE
USED FOR ENHANCE FRAUD
INVESTIGATION. SINCE TWENTY
THIRTEEN THE DEPARTMENT HAS
COLLECTED A HUNDRED AND THIRTY
NINE POINT TWO MILLION DOLLARS
INSTALLMENT PAYMENTS. ADULT IN
MORE THAN SIXTY SIX MILLION
DOLLARS PAID TO THE GENERAL
FUND. ON REVENUE COLLECTION
WOULD NOT BE POSSIBLE WITHOUT
THE RESOURCES CDI HAS RECEIVED
OR THE RESOURCES THE DEPARTMENT
IS CURRENTLY SEEKING. ON THE
FLIP SIDE SINCE TWENTY FOURTEEN
THIS FISCAL YEAR TWENTY
FOURTEEN FIFTEEN THE
LEGISLATURE HAS APPROVED
MULTIPLE ONE TIME REQUESTS
TOTALING ALMOST FIFTY FIVE
MILLION DOLLARS AND UP TO FIFTY
POSITIONS TO UTILIZE THESE
FUNDS FOR ENHANCE FRAUD
INVESTIGATION PREVENTION. OVER
THE LAST EIGHT YEARS HE HAS
DEMONSTRATED A STRONG TRACK
RECORD OF MAKING RECOVERIES FOR
THE GENERAL FUND AS A RESULT OF
OUR WHISTLEBLOWER LITIGATION.
HELLO MORE THAN COVER OUR
RESOURCE REQUEST OVER THE LAST
FIVE YEARS WE'VE COLLECTED AN
AVERAGE OF NINE MILLION DOLLARS
A YEAR AND IN THE CURRENT
FISCAL YEAR WE'VE ALREADY
COLLECTED FIFTEEN MILLION
DOLLARS AS A RESULT OF OUR
EFFORTS. WE'RE REQUESTING SIX
POINT ONE MILLION DOLLARS ON
GOING. TO CONVERT THIRTY FOUR
EXPIRING LIMITED TERM POSITION.
TO PERMANENT POSITION TO
SUPPORT THE CONTINUATION OF
THIS PROGRAM. AND ALSO SIX
HUNDRED FORTY. SIX HUNDRED
FORTY THOUSAND EVERY THREE
YEARS. BEGINNING IN FISCAL YEAR
TWENTY TWENTY THREE TWENTY FOUR
TO CONTINUE OUR SOFTWARE AS A
SERVICE SUBSCRIPTION OUR E.
DISCOVERY PROGRAM. WALL OF OUR
PREVIOUS FUNNY REQUESTED PAGE
PER LIMITED TERM FUNDING THE
LIMITED TERM STATUS OF THE
FUNDING IS NO LONGER UPROOTED
AND IS DETRIMENTAL TO THE
PROGRAM AND THE STATE'S
INTEREST. IT WOULD BE MORE
EFFECTIVE TO PROVIDE A
PERMANENT ONGOING APPROPRIATION
TO CDI FOR THIS DEDICATED FUND
SOURCE TO SUPPORT DEPARTMENTS
ENHANCED FRAUD INVESTIGATION
PREVENTION EFFORTS. SECURING
PERMANENT FUNDING WILL PROVIDE
MORE CONTINUITY IN THE PROGRAM
RESULTING IN BETTER OUTCOMES IN
TERMS OF MONETARY IMPLICATING
WHISTLEBLOWER CASES AND
DETERRING INVESTIGATING FRAUD
WHICH ULTIMATELY WILL RESULT IN
GREATER RECHARGE THE GENERAL
FUND. THIS IN TURN WILL
DIRECTLY BENEFIT CALIFORNIA
CONSUMERS BY PROTECTING THEM
FROM FRAUDULENT ACTIVITIES AND
HELPS TO INSULATE ONSUMERS
FROM THE ULTIMATE COST OF
INSURANCE FRAUD. WHICH IS
PASSED ON TO CALIFORNIA
CONSUMERS IN THE FORM OF HIGHER
INSURANCE PREMIUMS AND FEES SO
WHAT WE DO WITH THESE RESOURCES
AND WHAT ARE ENHANCE FRAUD
INVESTIGATION AND PREVENTION
EFFORTS WILL INCLUDE. IT WILL
CONTINUE TO MONITOR IT WAS A
QUIRKY SAYS. IT ALSO PROVIDES
FUNDING TO INVESTIGATE
SUSPECTED FRAUD WE USE THIS
MONEY TO PUT EMPHASIS ON. OUR
CASES HAVE IN EXCESS OF A
HUNDRED THOUSAND DOLLARS IN
SUSPECTED LOSSES INVOLVING
THREE OR MORE VICTIMS SO THESE
ARE HIGHER IMPACT FRAUD CASES.
AS WELL AS ONGOING MAINTENANCE
AND OPERATIONS OF OUR FRAUD
DATA ANALYTICS SYSTEM WHICH WE
IMPLEMENTED USING PRIOR GENERAL
FUND RESOURCES MADE POSSIBLE BY
THE GENERAL FUND KEYCHAIN
RECOVERIES AS WELL AS
CONTINUING OUR EDISCOVERY
SOFTWARE AS A SERVICE
SUBSCRIPTION. WHICH IS ANOTHER
GREAT ENHANCEMENT THAT WAS MADE
POSSIBLE BY PRIOR GENERAL FUND
RESOURCES. THE FINDINGS HE HAD
HER QUESTION WOULD COME FROM
THE KEYCHAIN RECOVERY CDI
COLLECTS AS A RESULT OF THE
SUPPLEMENTS THAT ARE PAID TO
THE GENERAL FUND. CI'S.
CONFIDENT THAT WITH PERMANENT
RESOURCE HIS CD I RECOVER. THEY
NEED TO COVER PROPOSED
EXPENDITURE. NO WE KNOW IMPACT
TO JUMP FUND. I MADE A PRICE
HERE FOR YOU QUESTIONS THIS FOR
OR DO YOU ME TO- CONTINUE NOW
WITH THEIR- OVERVIEW OF SECOND.
SORRY MY MICROPHONE WAS OFF OF
MISCONDUCT YES IF YOU CAN
CONTINUE PLEASE THAT BE GREAT.
OKAY THANK. YOU FOR ALL THE
HELP. YES SOURCE PROPOSAL IS-
SB EIGHT FIVE FIVE OR MENTAL
HEALTH OR SUBSTANCE USE
DISORDERS THIS VCP REQUESTING
HALF A POSITION AND AN INCREASE
IN THE INSURANCE FINAL EXPENSE
OR FORTY OF EIGHTY ONE THOUSAND
DOLLARS IN TWENTY ONE TWENTY
TWO AND SEVENTY THOUSAND TWENTY
TWO TWENTY THREE AND I'M GOING
AND THIS IS TO MONITOR
INSURANCE COMPLIANCE- INSURER
COMPLIANCE WITH ENHANCED MENTAL
HEALTH AND SUBSTANCE USE
DISORDER. REQUIREMENTS MANDATED
BY SB FIFTY FIVE. SB EIGHT
FIFTY FIVE BROUGHT TD EYES AT
THE ALREADY OVER HEALTH
INSURANCE COVERAGE DECISIONS I
EXPANDING THE UNIVERSE OF
MENTAL HEALTH CONDITIONS FOR
WHICH INSURERS MUST PROVIDE.
MEDICALLY NECESSARY BENEFITS
UNDER THE SAME TERMS AND
CONDITIONS AS THEY CAN FOR
PHYSICAL HEALTH CONDITIONS. IT
ALSO CREATES A MORE SPECIFIC
YET MORE COMPLEX SET THE
STANDARDS IT CD I WILL NEED TO
WILL. ARE YOU READY ENSURE
MEDICAL NECESSITY TO. AND
UTILIZATION REVIEW PROCESSES AS
THEY RELATE TO MENTAL HEALTH
AND SUBSTANCE USE DISORDERS.
THIS INDEFINITE. AT THIS TIME
WE'D BE HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE ON OUR
PROPOSALS THANK M. S. CROSS
LET'S HEAR FROM THE ALLELES.
GOOD AFTERNOON I'M BRAND
WHETHER FOR THE LEGISLATIVE
ANALYST'S OFFICE. AS MENTIONED
IN THE AGENDA THE STATUS
PREVIOUSLY FUNDED THESE
ENHANCED INSURANCE FRAUD
INVESTIGATION AND PREVENTION
ACTIVITIES ON A LIMITED TERM
BASIS. THE PRIMARY REASON THAT
ONGOING FUNDING WAS NOT
PROVIDED TO FOUR IS THAT LEGAL
JUDGMENTS AND SETTLEMENTS NOT A
TRADITIONAL RECORDING RECURRING
SOURCE OF FUNDING. IN THE
AMOUNT FLUCTUATES FROM ONE YEAR
TO ANOTHER. AS THE DEPARTMENT
INDICATED HOWEVER THERE MAY BE
OPERATIONAL BENEFITS FROM
FUNDING THE POSITIONS ON THE
BUDGET. ON AN ONGOING BASIS
INSTEAD OF ON A LIMITED TERM
BASIS. FOR EXAMPLE ONGOING
FUNNY MAY IMPROVE THE ABILITY
OF THE OF THE DEPARTMENT TO
RECRUIT. AND RETAIN MORE
QUALIFIED EMPLOYEES IN THESE
POSITIONS. WE HAVE ANALYZED THE
FLOW OF REVENUES FROM LEGAL
JUDGMENTS AND SETTLEMENTS.
HAPPEN PRINCIPLE TO TEN
INSURANCE FRAUD CASES OVER THE
PAST SEVERAL YEARS AND WE HVE
DETERMINED THAT THE AMOUNT OF
REVENUE SHOULD BE SUFFICIENT TO
SUPPORT THE LEVEL OF ONGOING
FUNDING THAT THE DEPARTMENT IS
REQUESTING FOR THEIR ENHANCED
INSURANCE FRAUD INVESTIGATION
AND FRAUD. PREVENTION
ACTIVITIES. BERMAN WE CAN
ANSWER- ANY ADDITIONAL YOU
MIGHT HAVE ABOUT. THAT AND WE
HAVE NO COMMENT ON THE MENTAL
HEALTH ITEM. THANK YOU FOR
THAT- MISTER MANNING. OUR
ASSORTMENTS MANNING FROM
DEPARTMENT OF FINANCE. SURELY
MANNING DEPARTMENT OF FINANCE
WE SUPPORT THE CONTINUATION OF
THE ENHANCE FRAUD INVESTIGATION
AND PREVENTION PROGRAM ON GOING
AS IT WILL ALLOW THE DEPARTMENT
TO INVESTIGATE MARC CASES
RETAINED EXPERIENCE ATTORNEYS
AND INVESTIGATORS AND RECOVER
ADDITIONAL SETTLEMENTS. ALSO
NOTE THAT CD I HAS CONSISTENTLY
RECOVERED MORE THAN ENOUGH
GENERAL FUND RESOURCES TO
SUSTAIN THIS PROGRAM AT THE
PROPOSED LEVEL FUNDING ON GOING.
AT NO ADDITIONAL COMMENTS FOR
THE MENTAL HEALTH AND SUBSTANCE
ABUSE DISORDERS THE PROPOSAL
THANK YOU. GREAT THANK YOU
OFFER THAT WE HAVE NO
ADDITIONAL COMMENTS OR
CONCERNS- IT'S CROSSED THANK
YOU SO MUCH FOR WITH MOVING ON
TO ISSUE NUMBER TWO. A
CALIFORNIA STATE PAYROLL SYSTEM.
A PROJECT I WILL START WITH
MISS JENNIFER URBAN FROM THE
STATE COMPTROLLER'S OFFICE.
GOOD AFTERNOON CHAIR HI MY NAME
IS JENNIFER URBAN AND I'M A
BUDGETS AND ACCOUNTING BUT MISS
URBAN ARE HAVING A HARD TIME
HEARING YOU SO LET'S A- LET'S
MAKE SURE THAT WE CAN GET YOU
ON A SHE ON VIDEO OR ON PHONE
ONLY. ON BOTH OKAY LET'S TRY
AGAIN. GOOD AFTERNOON YEAH YOU
SOUND YOU SOUND REALLY FAR.
SORRY IS THAT BETTER NOW STILL
THE SAME LET'S SEE IF WE CAN
TRY TO UP YOUR MICROPHONE ON
OUR END ONE SECOND CAN I JUST
HAVE YOU COME FROM ONE TO TEN.
ONE TWO THREE. FOUR FIVE YET IT
SEEMS TO BE ON ON YOUR AND I
DON'T KNOW IF YOU'RE ON A
HEADSET. OR IT MAY BE SPEAK
LOUDER INTO YOUR MICROPHONE IF
YOU'RE ON A LAPTOP. OKAY JUST
CHANGE A SETTING AT THAT BETTER.
SLIGHTLY BETTER. OKAY I'M SORRY
THAT'S OKAY JUST TRY TO-
PROJECT YOUR VOICE IF YOU CAN
WE'RE HAVING A HARD TIME
HEARING YOU BUT IT DOES SOUND A
LITTLE BIT BETTER. OKAY GOOD
AFTERNOON MY NAME IS JENNIFER
URBAN AND I'M THE CHIEF OF
BUDGETS AND ACCOUNTING WITH THE
STATE COMPTROLLER'S OFFICE. WE
THANK YOU FOR THE OPPORTUNITY
TO DISCUSS THE SCO'S TWENTY ONE
TWENTY TWO BUDGET CHANGE
PROPOSALS. AS A CENTRAL SERVICE
AGENCY SCO PROVIDES CORE
SERVICES SUCH AS ACCOUNTING.
AUDITING PAYROLL AND THE
DISBURSEMENT OF STATE FUNDS TO
STATE AND LOCAL GOVERNMENT
AGENCIES. WE ALSO ADMINISTER
THE UNCLAIMED PROPERTY PROGRAM
WITH THE PRIMARY GOAL TO
SAFEGUARD PROPERTY UNTIL
CLAIMED BY THE RIGHTFUL OWNER.
THE FIRST ITEM BEFORE WAS ISSUE
TO CALIFORNIA STATE CAROL
SYSTEM PROJECT. SB WAS
REQUESTING SIX PERMANENT NEW
POSITIONS. AND ONE CONTINUING
LIMITED TERM POSITION. AND
ASSOCIATED FUNDING TO SUPPORT
THE CALIFORNIA STATE CABLE
SYSTEM PROJECT THROUGH THE
CONTINUATION OF THE CALIFORNIA.
DEPARTMENT OF TECHNOLOGY
PROJECT APPROVAL LIFECYCLE. THE
RESOURCES WILL CONTINUE TO WORK
ON THE PROJECT ACTIVITIES THAT
WILL DRIVE THE PROCESS OF
ASSESSING OPTIONS AND DESIGNING
A NEW STATEWIDE PERSONNEL AND
PAYROLL SOLUTION THROUGH A
CHALLENGE BASED PROCUREMENT
WHICH INCLUDES A PERFECT
CONCEPT THEY- WE'RE HAPPY TO
ANSWER ANY QUESTIONS YOU MAY
HAVE. THANK YOU FOR THAT LET'S
HEAR FROM MR METZGER WHAT HELLO.
AFTERNOON BRIAN METZGER L. A.
O. WE RECOMMEND THE LEGISLATURE
WITHHOLD ACTION ON THESE BUDGET
PROPOSALS AND TELL THE
CALIFORNIA DEPARTMENT OF
TECHNOLOGY APPROVED CRITICAL
PLANNING DOCUMENTATION FOR THIS
PROPOSED PROJECT. NOT THE
DOCUMENTATION WILL ALLOW OUR
OFFICE TO MORE FULLY ASSESS AND
RECOMMEND ACTION ON THESE
PROPOSALS IN THE MEANTIME WE
WOULD LIKE TO ACKNOWLEDGE THE
ADMINISTRATION FOR ITS EFFORTS
TO COMPREHENSIVELY PLANNED THIS
PROJECT OVER THE LAST SEVERAL
YEARS. HOWEVER WE ALSO
RECOMMEND THE LEGISLATURE
FURTHER EVALUATE THIS PROJECT
BECAUSE OF ITS COMPLEXITY AND
COST- LUMINARY BASELINE COST
FOR THIS PROJECT IS
APPROXIMATELY SEVEN HUNDRED AND
FIFTY MILLION DOLLARS. IN THE
PRELIMINARY BASELINE SCHEDULE
IS AT LEAST FIVE YEARS. THE
LEGISLATURE COULD BEGIN TO
EVALUATE THE PROJECT BY ASKING
SOME OF THE QUESTIONS ON PAGES
SIX AND SEVEN OF TODAY'S
AGENDA. THE LEGISLATURE COULD
ALSO DIRECT THE ADMINISTRATION
TO PROVIDE A REPORT WITH ALL
THE OPTIONS AND TECHNICAL
SOLUTIONS CONSIDERED AND THEIR
ASSOCIATED PRELIMINARY COST
SCHEDULE AND SCOPE. FINALLY WE
RECOMMEND THE LEGISLATURE
ESTABLISHING OVERSIGHT
FRAMEWORK FOR THIS PROPOSED
PROJECT. THE LEGISLATURE COULD
FOR EXAMPLE CONSIDER BUDGET
BILL LANGUAGE REQUIRING MONTHLY
OVERSIGHT MEETINGS WITH THE
ADMINISTRATION AND OUR OFFICE
ON BEHALF OF THE LEGISLATURE TO
RECEIVE PROJECT UPDATES AND
REVIEW OVERSIGHT DOCUMENTS. AND
QUARTERLY LEGISLATIVE BRIEFINGS
THE UPDATE OTHER LEGISLATIVE
STAFF ON THE PROPOSED PROJECT.
THIS FRAMEWORK COULD BE
REVISITED ONCE THE PROPOSED
PROJECT BEGINS DEVELOPMENT AND
IMPLEMENTATION THANK YOU. THANK
YOU FOR THAT LET'S HEAR FROM
THE DEPARTMENT OF FINANCE.
MISTER CADERA. THE DEPARTMENT
FINANCE DOMINIC IN THEIR
DEPARTMENT OF FINANCE- WE
SUPPORT THE CONTINUATION OF
THIS PROJECT. THANK YOU FOR
THAT I DO HAVE A COUPLE
QUESTIONS- MISS URBAN WHAT
REPORTING IS REQUIRED FROM THE
COMPTROLLER'S OFFICE TO THE
LEGISLATURE ON THIS PROJECT AT
THE CURRENT MOMENT. HI CHRIS
MAYO HERE THAT DIRECTOR OF THIS
ARE YOU SOUND REALLY FAR AWAY
WE'RE HAVING SOME AUDIO ISSUES.
CAN YOU JUST PROJECT A LITTLE
LOUDER PLEASE. YES I AM CHRIS
MAYO THE DIRECTOR OF THE
PROJECT DIRECTOR WILL BE HAPPY
TO ANSWER THAT QUESTION. YEAH
CHRIS MAIL HERE- I AM THE
DIRECTOR OF THE C. S. B. OFF
PROJECT AND ANNUALLY WE DO FILE
A REPORT WITH THE JOINT
LEGISLATIVE BUDGET COMMITTEE-
DESCRIBING- PRIOR YEAR
EXPENDITURES AND EXTEND
ACCOMPLISHMENTS. SO RIGHT RIGHT
NOW IT'S JUST AN ANNUAL REPORT.
THANK YOU AT THE COMPTROLLER'S
OFFICE WILLING TO COMMIT TO
ADDITIONAL REPORTS AND
BRIEFINGS AS STATED BY THE L.
L.'S OFFICE TO BETTER.
COMPREHEND THE STATUS.
ABSOLUTELY WE ACTUALLY WELCOME
SUCH- REPORTING. THAT'S
EXCELLENT GREAT TO HEAR THANK
YOU I HAVE NO ADDITIONAL
QUESTIONS I THANK YOU ALL FOR
JOINING WE'RE MOVING ON TO THE-
ISSUE NUMBER THREE. WHICH IS A
LOCAL GOVERNMENT OVERSIGHT
INTERNAL CONTROL REVIEWS- IS
URBAN YOU'RE STILL WITH US ON
THIS PANEL I SAW THAT YOUR ON
YOUR- YOUR- HEADSET MAYBE IT
MIGHT BE A GOOD IDEA TO NOT USE
THAT SENSE IT SEEMS TO- YOU
SOUND REALLY FAR AWAY. YES I
THINK TRIED THAT IS THIS
BETTER.NO IT'S NOT. JUST COME
FROM IF YOU CAN COME FROM ONE
TO FIVE MAYBE WE CAN TRY TO UP
YOUR VOLUME INTERNALLY IN THE
IN THE ROOM. OKAY. ONE TO THREE
FOR FIVE NO IT'S STILL IT'S
STILL KIND OF YOU SOUND VERY
FAR AWAY UNFORTUNATELY. OKAY
YEAH IF YOU YOU KNOW WHAT WHY
DON'T WE- YOU'RE GONNA HAVE TO
GET VERY CLOSE TO YOUR COMPUTER
SO WILL TURN OFF YOUR VIDEO SO
YOU'RE- NOT SUPER SUPER CLOSE
ON THE TV ON THE TV SCREEN BUT
WE MIGHT BE ABLE TO HEAR YOU
BETTER. OKAY IS THAT BETTER
YES. THEY COULD BE INITIALLY
WHEN YOU'RE DEALING AUDIO. YES
I'M SORRY ABOUT THAT NO WORRIES.
I'M OKAY B. M. ISSUE NUMBER
THREE IS AS HE WAS REQUESTING A
SHIFT OF SEVEN HUNDRED AND
TWELVE THOUSAND DOLLARS IN
REIMBURSEMENT AUTHORITY TO
GENERAL FUND SPECIAL FUNDS TO
SUPPORT FIVE EXISTING RESOURCES
TO PERFORM ONGOING
INVESTIGATIVE REVIEWS IN THE
OVERSIGHT OF LOCAL GOVERNMENT
AGENCIES AND THIS IS PURSUANT
TO GOVERNMENT CODE SECTION.
TWELVE FOR TWO TWO POINT FIVE
THIS IS A NET ZERO GROWTH
REQUEST FOR THE STATE
COMPTROLLER'S OFFICE AND WE'RE
HAPPY TO ANSWER ANY QUESTIONS
YOU MAY HAVE. OKAY LET'S HEAR
FROM THE LEGISLATIVE ANALYST'S
OFFICE PLEASE. AND HOLLINGSHEAD
WITH THE L. A- AND WE HAVE NO
CONCERNS WITH THE PROPOSAL.
THANK YOU DEPARTMENT OF FINANCE.
DOMINIC AT THEIR DEPARTMENT OF
FINANCE WE HAVE NO CONCERNS AS
WELL. OKAY ARE GONNA GO TO THE
MEMBERS OF THE COMMITTEE. NOW
CAN HAVE A COUPLE OF QUESTIONS
AND COMMENTS ACTUALLY. INSTEAD
OF PROVIDING GENERAL FUND FOR
THE COST OF THESE
INVESTIGATIONS HAS THE
COMPTROLLER'SOFFICE EXPLORED
MAKING A CUT MAKING A COMPLAINT
TO TRIGGER THAT WOULD ALLOW THE
CONTROLLER THE COMPTROLLER'S
OFFICE TO RECOVER COSTS. I'M
GOING TO I'M PASSED THAT OVER
TIME MY GREENS. WELL I MAKE
REASON THE DIVISION CHIEF AT
THE DIVISION OF ALL THAT'S
SORRY WE CAN'T WE CANNOT HEAR
YOU. YOU SOUND VERY FAR AWAY.
SURE MY NAME IS MICHAEL REVIEWS
FROM THE DIVISION ACTING
DIVISION CHIEF OF THE DIVISION
OF ALL ASSETS. CAN YOU HEAR ME
NOW. YES YOU SOUND FAR SO I'M
JUST CURIOUS IF MAYBE THERE'S
AN AN ISSUE WITH OUR AUDIO
INTERNALLY IN THIS ROOM. NOW.
YEAH IF YOU CAN JUST SPEAK UP A
LITTLE LOUDER PLEASE. SURE I
WILL SPEAK LOUDLY AS I CAN-
THAT'S MUCH BETTER YES. THE
GREAT OUTSIDE LIKE UPLOAD
LICENSE. SEARCH TO BE CLEAR
IT'S NOT- ABOUT THE TRIGGER
THAT MAKES BURKE. AND NON
REIMBURSABLE IT'S ACTUALLY THE
TYPE OF WORK THAT WE PERFORM.
QUORUM THE WORK TO BE PERFORMED-THAT'S REIMBURSABLE IS WORK
UNDER GOVERNMENT CODE TWELVE
FOUR SIX FOUR EIGHT. OR BY A
LOCAL AGENCY PROVIDES US BUT
INCOMPLETE ORMISSING FINANCIAL
DATA AND WE SEND AUDITORS OUT
TO- OBTAIN THAT MISSING OR FIND
MISSING OR INCORRECT FINANCIAL
DATA. THE WORK THAT WE'RE
SEEKING REMEMBER WE'RE SEEKING
FUNDING FOR IN THIS BCP IS WORK
PERFORMED UNDER GOVERNMENT CODE
TWELVE FORTY TWO POINT FIVE.
WHICH IS AN INTERNAL CONFLICT
TROLL REVIEW YOU KNOW OF A
LOCAL AGENCY- FOR FINANCIAL
REASONS OR FRAUD REASONS- THAT
CODE WAS PASSED IN TWO THOUSAND
EIGHTEEN AND AT THE TIME IT DID
NOT PROVIDE US WITH THE
REIMBURSEMENT PROVISION. SO. TO
MAKE THE AUDIENCE FULLY
REIMBURSED BY A LOCAL AGENCY WE
WOULD NEED NOT. ADDITIONAL
TRIGGER IN- GOVERNMENT CODE
TWELVE FOUR SIX FOUR EIGHT BUT
ACTUALLY REIMBURSEMENT
PROVISION IN ITS ENTIRETY ORDER
GOVERNMENT KEVIN TWELVE FORTY
TWO POINT FIVE. OR THE ON
INTERNAL CONTROL AUDIT WORKERS.
SO THAT. YES IS THE QUESTION
OKAY- AMONG ANOTHER QUESTION IF
THE COMPTROLLER'S OFFICE HAS
HAD- ISSUES RECOVERING THESE
COSTS FROM LOCAL AGENCIES THE
DEPARTMENT OF FINANCE HAVE
SUGGESTIONS ON WHAT AVENUES FOR
RECOVERY ARE AVAILABLE FOR THE
CONTROLLER. YES WE DO HAVE
OTHER. AVENUES AVAILABLE THE
AMOUNTS THAT WE BILL FOR THAT
WE DO NOT GET REIMBURSEMENT FOR
AMERICAN LEVEL- IMMATERIAL. BUT
WE DO HAVE PROVISIONS TO
RECOVER THOSE COSTS AND THAT IS
WE CAN OFFSET AGAINST PAYMENTS
TO LOCAL AGENCIES WE CAN ALSO-
ATTENDANCE RECORD SETTLEMENTS
AND DEBT COLLECTION AGENCIES.
AND HAS THAT BEEN COMMUNICATED
TO THE COMPTROLLER'S OFFICE IN
TERMS OF ANY ADDITIONAL- HUESO
RECOVERY. YES WE UNDERSTAND
THOSE LISTS WAYS THAT WE CAN
RECOVER. THIS IS JENNIFER BEEN-
BUT ALSO LIKE TO ADD THAT- THIS
B. C. P. IS NOT REQUESTING THE
FUNDING FOR THE BILLABLE
PORTION OF THIS WORK. RATHER
IT'S SPECIFIC TO THE INTERNAL
CONTROL AUDITS IN THE MINISTRY
OF WORKLOAD COSTS THAT THE
ISSUE HAS NO AUTHORITY TO BUILD
THE LOCAL AGENCIES UNDER. OKAY
THANK YOU FOR THAT I HAVE NO
ADDITIONAL COMMENTS OR
QUESTIONS I THANK YOU ALL WE
CAN MOVE ON TO ISSUE NUMBER
FOUR- THIS THE OTHER STATE
COMPTROLLER'S OFFICE BUDGET
PROPOSAL SMITH URBAN. YES ISSUE
FOUR IS RELATED TO PROPOSALS
THE FIRST IS REQUESTING
RESOURCES TO VALIDATE
COMPLIANCE WITH STATE WIDE
INFORMATION SECURITY POLICY
STANDARDS AND PROCEDURES TO
VERIFY SCO'S INTERNAL
INFORMATION SECURITY SYSTEMS
AND POLICIES ARE IN PLACE AND
FUNCTIONING AS INTENDED AS WELL
AS TO SUPPORT BUSINESS
CONTINUITY OPERATIONS. THE
SECOND REQUEST- IT IS ASKING
FOR INCREASED BASELINE FUNDING
TO SUPPORT OPERATIONAL COSTS
ASSOCIATED WITH TRAINING
STATEWIDE FEES CONTACT COSTS IN
INFORMATION TECHNOLOGY OVER THE
PAST YEARS ESIO HAS EXPERIENCED
INCREASED COSTS WHICH IS THE
ROOT OF THE BASELINE FUNDING AS
YOU WERE CHARGED WITH THE
FILLING A VARIETY OF MANDATED
FUNCTIONS AND SUPPORTER OF THE
STATE AND EROSION OF BASELINE
FUNDING PUTS IN JEOPARDY THE
ABILITY TO CONTINUE PERFORMING
THESE WORKLOADS. WHILE KEEPING
PACE WITH RISING COSTS. WE'RE
HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU LET'S GO TO THE
LEGISLATIVE ANALYST'S OFFICE.
AND HOLLINGSHEAD WITH THE L. A.
O. WE DO NOT HAVE ANY CONCERNS
WITH THESE PROPOSALS. THANK YOU
DEPARTMENT FINANCE. DOMINATED
THEIR DEPARTMENT OF FINANCE WE
ALSO HAVE NO CONCERNS. THANK
YOU MEMBERS OF THE COMMITTEE.
OUR LAST COUPLE QUESTIONS- BOTH
PROPOSALS REQUEST FUNDING FROM
THE UNCLAIMED PROPERTY FUND IT
IS MY UNDERSTANDING THAT THERE
ARE SPECIFIC ISSUES. I'M SORRY
SPECIFIC SPECIFIC USES FOR THIS
FUN WHICH IS HIGHLIGHTED IN THE
COMMITTEE'S ANALYSIS DOES THE
REQUEST FOR UNCLAIMED PROPERTY
FUNDS FALL UNDER THOSE
PARAMETERS. YES IT DOES AS YOU
IS DIRECTLY APPROPRIATED THAT
THE UNCLAIMED PROPERTY FUND I'M
SORRY CAN YOU SPEAK A LITTLE
LOUDER PLEASE. YEP YES S. C. O.
IS DIRECTLY APPROPRIATED
UNCLAIMED PROPERTY FUND FOR THE
ADMINISTRATION OF THE UNCLAIMED
PROPERTY PROGRAM WHICH INCLUDES
COSTS FOR PERSONAL SERVICES AND
RELATED OPERATING EXPENSES AND
EQUIPMENT. THE COST INCLUDED IN
BOTH OF THESE PROPOSALS
DIRECTLY AND INDIRECTLY SUPPORT
THE OPERATIONS OF THE PROGRAM
AND THEREFORE ARE INAPPROPRIATE
EXPENSE. OKAY THANK YOU FOR
THAT MANY ADDITIONAL. COMMENTS
QUESTIONS SAYING NONE THANK YOU
ALL FOR- FOR BEING PART OF THE
PANEL WE'RE GOING TO MOVE ON TO
ISSUE NUMBER FIVE RELATED TO
THE DEPARTMENT OF HUMAN
RESOURCES. THE CALIFORNIA STATE
PAYROLL SYSTEMS PROJECT- LET'S
GO WITH MR CAMPION WITH THE
DEPARTMENT OF FINANCE. J. GARY
YES PERFECT PATRICK CAMPAIGN
DEPARTMENT OF FINANCE AFTERNOON
SO THE PROPOSAL FOR YOU IS- FOR
THE CALIFORNIA DEPARTMENT OF
HUMAN RESOURCES THEIR REQUEST
IN ONE POSITION AND TWO HUNDRED
THIRTY THOUSAND DOLLARS GENERAL
FUNDS- TO FIND SOMEONE TO SERVE
AS THE ENTERPRISE H. R. PROJECT
DIRECTOR AND THIS WILL
CORRESPOND TO THE CALIFORNIA
STATE PAYROLL SYSTEM- WHICH YOU
JUST STARTED OUT FROM THE STATE
COMPTROLLER'S OFFICE- SO
CALLOUS R. AS IN CHARGE OF MANY
HR POLICIES AND SEVEN HR POLICY
AND MANY OF THOSE POLICIES
DRIVE. OKAY ROLE- SO THIS
POSITION WILL HELP WITH THOSE
FUNCTIONS AND- WORKING WITH THE
STATE COMPTROLLER'S OFFICE ON
THIS PROJECT AND I CAN TAKE ANY
QUESTIONS IF YOU GUYS HAVE ANY.
THANK YOU LET'S GO TO THE LARGE
ANALYST'S OFFICE MISTER
SCHROEDER. BY NICK SCHROEDER
WITH THE L. A. O. WE HAVE NO
ISSUES WITH THE PROPOSAL. OKAY
THANK YOU FOR THAT ANY COMMENTS
FROM THE COMMITTEE. ALL RIGHT
SEEN NONE I DON'T HAVE ANY
ADDITIONAL COMMENTS AS WELL
LET'S GO ON TO A ISSUE NUMBER
SIX OTHER DEPARTMENT OF HUMAN
RESOURCES BUDGET REQUEST. MR
CAMPION. SURE OKAY OKAY SO-
THERE'S TWO PROPOSALS HERE ONE
IS FOR A STATE WIDE HUMAN
RESOURCES WORKLOAD THIS IS FIVE
POSITIONS AND EIGHT HUNDRED
THIRTY SIX THOUSAND DOLLARS
GENERAL FUND- AND THIS WOULD
HAVE- A FUN CAL IT'S HARD TO
ASSESS AND PROVIDE OVERSIGHT
AND SUPPORT TO DEPARTMENTAL
PERSONAL SHOPS FOR. A WIDE
RANGE OF- HR FUNCTIONS THIS CAN
INCLUDE YOU KNOW SEARCH
STAFFING OR EMERGENCIES ARE
CORRECTING AUDIT FINDINGS- AND
VARIOUS OTHER. H. R. WORK- THIS
WILL KIND OF ACT AS A SEARCH
TEAM BASICALLY- AND THEN THE
OTHER PROPOSAL IS JUST A
TECHNICAL NETZERO SHIPPED-
COLLEGE OURS REQUESTING TO
SHIFT NINE HUNDRED AND SIX
THOUSAND DOLLARS- AND ONE
POSITION FROM THEIR BENEFITS
PROGRAM TO THEIR- HR MANAGEMENT
PROGRAM I'M JUST A BETTER
ALIGNED WITH WHERE THAT- THE
SUBSTANCE ABUSE AT TESTING
PROGRAM FITS IN THEIR BUDGET. I
CAN TAKE ANY QUESTIONS ON
EITHER OF THOSE TWO AS WELL.
THANK YOU FOR THAT LET'S HEAR
FROM THE LEGISLATIVE ANALYST
OFFICE MISTER SCHROEDER. HI
NICK SCHROEDER WITH THE L. A.
AGAIN ACTUALLY I MISSPOKE ON
THE LAST PROPOSAL WE DON'T HAVE
A ISSUE WITH THAT BUT IT'S PART
OF THE- ISSUE TOO WHEN MY
COLLEAGUE BRIAN METZGER
INDICATED THAT WE RECOMMEND
THAT IT BE- WITH THE
LEGISLATURE HOLD ACTION UNTIL
AFTER. THE CD OF CDT APPROVES
THE STAGE TO ALTERNATIVE
ANALYSIS- ON ISSUE SIX THAT WE
HAVE NO NO ISSUES. OKAY THANK
YOU MISTER SCHROEDER WERE GONNA
HAVE TO RESTART. AND GO BACK TO
ISSUE FIVE JUST KIDDING OUR NOT
WE'RE GONNA BE FINE. JUST
KIDDING GOOD FOR YOU. I'M I'M
IN A I'M IN THE MOOD TODAY. ALL
RIGHT WELL I HAVE A JUST A ONE.
FOR WELL LET'S SEE- WHO'S BY
FOR THIS QUESTION. CAN EITHER
HR FINANCE EXPLAIN WITH THIS
REQUEST IS FOR PERMANENT
FUNDING AND NOT LIMITED TERM IF
KELLY CHARS NOT SURE HOW MANY
DEPARTMENTS MAY FALL UNDER THE
RESTRICTED. DELEGATION IN THE
FUTURE. YEAH PATRICK CAMPAIGN
DEPARTMENT OF FINANCE I CAN
TAKE THE FIRST STAB AT THIS AND
THEN ALL. THE PARTS OF MY
COLLEAGUES THAT COUNTY CHART-
FOR MORE DETAILS BUT- I HAD
THE- FOR DEPARTMENTS THAT ARE
LOSING THEIR DELEGATED
AUTHORITY OR HAVE LIMITED
DELEGATED AUTHORITY. THAT'S A
BIG DRIVER OF THE WORKLOAD
DISASSOCIATED- WITH THIS BUT-
JUST WANNA AND- PUT EMPHASIS ON
THAT THAT'S NOT THE ONLY THING
THAT THESE RESOURCES WOULD BE
USED FOR- CURRENTLY AUDITS ARE
FIGHTING ABOUT TWENTY FIVE
PERCENT. REPEAT THAT H. R.
ISSUES IN THEIR IN THEIR HR
AUDITS SO- REALLY WHAT'S WHAT'S
HAPPENING IS YOU KNOW OUT OF
THE HUNDRED FIFTY DEPARTMENTS
25% YOU KNOW YOU STILL HAVE.
THIRTY SEVEN THIRTY EIGHT-
DEPARTMENTS THAT ARE HAVING
REPEAT H. R. ISSUES AND SO.
LOSING YOUR DELEGATE AUTHORITY
KIND OF THE LAST. THING THAT WE
WANT TO HAVE HAPPEN SO THERE'S
ALSO A- PREVENTION PIECE TO
THIS AS WELL SO- I THINK THAT
IS PART OF IT THERE'S YOU KNOW
VARIOUS DIFFERENT EMERGENCIES
NOT JUST COVER NINETEEN BUT-
VARIOUS OCCURRENCES WHERE THE
STATE NEEDS TO RAMP UP HIRING
QUICKLY. AND CAL IN THIS GROUP
WILL BE ABLE TO HELP WITHOUT
WITHOUT. LOSING OUT ON THEIR
CURRENT WORK LOAD THAT THERE
ARE SIGNS- AT THE VENUE TO MEET
JUST FOR. EVERYDAY PURPOSES GEN
IN ORDER FOR TO COLLEGE ART
THEY HAVE ANYTHING THAT THEY
WANT TO HAVE FOR THAT. THE
SOMEONE FROM KELLY CHARTER-
WOULD LIKE TO ADD A COMMENT TO
THAT. YES MELISSA RUSSELL CHIEF
PERSONNEL MANAGEMENT. KELLY
CHART RIGHT TO- HAVE A LITTLE
BIT QUESTION PLEASE AHEAD MA'AM.
THANK YOU- OKAY- WITH THAT WE
CAN WAIT TO HIGH QUALITY STAFF
THE PEOPLE. HI ABOUT. WILL BE
WITH IN ORDER TO PROVIDE
BECAUSE OF HANDS ON DIRECTION
THE PART- EDUCATION OF THEIR HR
CRIED. FARM AND I'LL T.
POSITION ALSO BECAUSE THAT
THESE PROBLEMS ARE TEMPORARILY
IN NATURE THAT THEY WILL NOT
RECUR OUT WITH A PARTNER- AS-
MENTIONED THE OTHER WILL WE SEE
THE PATH FOR- THEY WERE IS A
BLACK TO BE BE ON FUTURE KERR
POLLS OF B. AT THE END. THAT
HAD TO BE ON INVOLVED IN INTO
WITH CORPORATE OR WITH REGARD
TO THE HR WORK. WITH MR LAPSLEY
WITH THE SECRETARY OF STATE. HI
GOOD AFTERNOON THANKS SO MUCH
THERE ARE TO HELP AMERICA VOTE
ACT PROPOSALS AT HAVAS IT'S
REFERRED TO YOU BY THESE ARE
CONSISTENT WITH PREVIOUS YEARS
ASKS THE FIRST ONE IS AT NINE
POINT SEVEN BILLION DOLLAR
REQUEST FOR SPENDING AUTHORITY
AT THIS POINT YOU'RE TWENTY.
ONE TWENTY TWO FROM THE FEDERAL
TRUST FUND TO COVER THE
MAINTENANCE AND OPERATIONS. OF
OUR STATEWIDE VOTER
REGISTRATION DATABASE THE IN
THE SPENDING WOULD BE EXPORTED
AND ALSO THE SECURITY
ASSESSMENTS ARE INCREASED
CUSTOMER EXPERIENCE. TO OUR
THIRD PARTY PROVIDER HER DAD
PARTNERS DIEM CTT HAS SENT
CONNECTIVITY AND- SHARING COSTS
AS WELL AS THE END OF SUPPORT
VERIFICATION FOR THE ENTIRE
SYSTEM. I'LL STOP RIGHT THERE
AND SEE IF THERE'S ANY
QUESTIONS. ON THAT FIRST
PROPOSAL. WHAT ONLY HE BOTH
PROPOSAL FROM THEN WE'LL GO TO
QUESTIONS AT THE END PLEASE
CONTINUE. SOUNDS GOOD. THE
SECOND ONE IS OUR STANDARDS I
HAVE A SPENDING PLAN PROPOSAL
AND REQUEST TWENTY TWO MILLION
DOLLARS IN EXPENDITURE FOR
TWENTY ONE TWENTY TWO FEDERAL
TRUST FUNDS TO CONTINUE
IMPLEMENTATION OF THE STATE
MIGHT MANDATES FOR HELP HELP
AMERICA VOTE ACT. THIS TWENTY
TWO POINT SEVEN MILLION DOLLARS
IT WILL BE ALLOCATED FOR VOTING
SYSTEM TESTING AND APPROVALS
SUPPORT SHIP BUT RICH CATION
ADMINISTRATIVE SUPPORT-
ELECTION OBSERVATION BALLOT
TRACKING AND THAT LOCAL SYSTEM
SUPPORT IS THE BIGGEST CHUNK OF
BATCH M. APPROXIMATELY NINE
POINT NINETEEN POINT FIVE
MILLION DOLLARS ABOUT THAT
NINETEEN POINT FIVE THIRTEEN
MILLION AS ACTUALLY EVERY
CONFERENCE OF EXISTING
CONTRACTS WITH COUNTY IS. FOR
THEM TO CONTINUE SPENDING AND I
HAVE A TWO FORTY TO SPEND
PREVIOUS AT. PREVIOUSLY
ALLOCATED FUNDING AMOUNTS.
THANK YOU MISLED SAILORS TO THE
LEGISLATIVE ANALYST OFFICE. THE
NEXT ROTOR WITH THE L. A. WE
HAVE NO ISSUES WITH THE
PROPOSAL'S. THANK YOU I MISS
JOHNSON WITH THE DEPARTMENT OF
FINANCE. TOMORROW JOHNSON
DEPARTMENT OF FINANCE WE
SUPPORT BOTH HOWEVER PROPOSALS
THANK YOU. THANK YOU FOR THAT
ANY COMMENTS OR QUESTIONS FROM
THE COMMITTEE. SEEN ON I DON'T
HAVE ANY AYE THERE WE CAN MOVE
ON TO ISSUE NUMBER. EIGHT AT
THANK YOU ALL FOR BEING A PART
OF THE PANEL WE'RE GOING TO GO
TO. MAKE SURE I HAVE THIS RIGHT
YES THE LEGISLATIVE WORKLOAD-
MISS- WADDLE FROM THE SECRETARY
OF STATE'S OFFICE PLEASE. HELLO
GOOD AFTERNOON. GOOD AFTERNOON.
THANK YOU JUST WANT TO MAKE
SURE THAT YOU CAN HEAR ME OKAY
SO I'LL GO AHEAD AND GET
STARTED MY NAME IS JULIE WHAT
DELL I'M THE CHIEF OF THE
POLITICAL REFORM DIVISION AT
THE SECRETARY OF STATE'S OFFICE
I'M JOINED TODAY BY SOME OF MY
CARS LEADERSHIP COLLEAGUES AND
WE'RE HAPPY TO ANSWER QUESTIONS
AFTER MY BRIEF UPDATE. ON AS OF
THIS PAST WEEKEND WE HAVE MET
THE FIRST MILESTONE AND
LAUNCHED A PRODUCTION
ENVIRONMENT OF THE NEW CAO
ACCESS THIS WAS THE FIRST OF
THREE RELEASES AS WE HAVE
INFORMED IN OUR JOINT
LEGISLATIVE BUDGET COMMITTEE
NOTICES OF DECEMBER AND
JANUARY. I JUST A BRIEF
OVERVIEW THE THREE RELEASES ARE
RELEASED ONE WHICH JUST
OCCURRED FEBRUARY TWENTY EIGHT
THIS WAS THE FIRST STEP IN THE
REPLACEMENT OF THE TWENTY PLUS
YEAR OLD OUTDATED AND
UNSUPPORTED LEGACY SYSTEM.
SELECT USERS ARE GRANTED ACCESS
TO THE ENVIRONMENT TO ENSURE IT
IS TESTED AND STABILIZE BEFORE
WE MOVE TO THE NEXT TWO
RELEASES. AND WITHIN THE
TESTING. SELECTS EXTERNAL
STAKEHOLDERS WILL BE
PARTICIPATING IN A SYSTEM
REVIEW OVER THE NEXT. FEW
MONTHS THREE MONTHS. AT
RELEASED TWO IS SCHEDULED FOR
APRIL FIFTEENTH AND WILL
INCLUDE ADDITIONAL
FUNCTIONALITY ADDED INTO THE
PRODUCTION ENVIRONMENT.
FOLLOWED FINALLY BY RELEASED
THREE WHICH IS SCHEDULED FOR
JUNE THIRTIETH WHEN THE FINAL
FUNCTIONALITY WILL BE ADDED TO
THE PRODUCTION ENVIRONMENT.
THIS RELEASE WILL INCLUDE
SYSTEM CERTIFICATION AND WILL
BE AVAILABLE FOR ALL USERS FOR
ALL PURPOSES. OVER THE PAST
SEVERAL MONTHS THE CAR'S TEAM
HAS HELD SEVERAL STAKEHOLDER
MEETINGS THAT INCLUDE PROJECT
UPDATES AND RECORDED OR LIVE
DEMOS THAT WE INCLUDED A RANGE
OF STAKEHOLDERS INCLUDING SOME
LEGISLATIVE STAFF AT PPC YOU
HAVE TO BE TREASURED
ASSOCIATION. ATTORNEYS
ASSOCIATION OF THE SOFTWARE
VENDORS WHO REPRESENT OVER 50%
OF THE FINDINGS AS WELL AS-
OTHER STAKEHOLDERS WE CONTINUE
TO WORK WITH THE- I. GA WHICH
REPRESENTS THE LOBBYING
ASSOCIATION. AND AT THAT
MEETING SCHEDULED FOR THIS WEEK
WE WILL CONTINUE TO HOLD SOCIAL
STAKEHOLDER MEETINGS- THROUGH
THE FINAL IMPLEMENTATION IN JAN-
THE CURRENT SYSTEM ENCOUNTERS
OUTAGES ON A REGULAR BASIS AND
ARCHITECTURE CURRENTLY HAVE IS
NO LONGER SUPPORTED. AND AS YOU
KNOW THIS IS ESSENTIAL TO
PUBLIC ASK ACCESS TO THE
DISCLOSURE INFORMATION IN
CALIFORNIA POLITICS. AS OF
ABOUT EIGHT MONTHS AGO WE HAVE
A NEW PLATFORM WHICH IS SALES
FORCE THE NEW SYSTEM INTEGRATOR
VENDOR AND A NEW MANAGEMENT
TEAM WE'VE BEEN WORKING VERY
HARD TOWARD IMPLEMENTATION UP
BY THE SYSTEM. THE CALIFORNIA
VOTERS AS RELIABLE ROBUST AND
DATA DRIVEN. AND I WILL CLOSE
MY REMARKS AND AGAIN WE'RE
HAPPY TO FIELD ANY QUESTIONS
YOU MAY HAVE. THANK YOU FOR
THAT LET'S GO AHEAD LET'S KEEP
HEARING THE PRESENTATIONS FOR
THIS PARTICULAR PANEL. AT
JANESSA QUEST. PRESENTING AB.
NINE SEVEN NINE. WE ARE DOING
IS PRESENTING AB. NINE SEVEN
NINE THIRTY SEVENTY FIVE OKAY
WHY DON'T WE START WITH AB
THIRTY SEVENTY FIVE IN. OKAY
GOOD AFTERNOON THANK YOU
CHAIRMAN ASSEMBLY CONVERSE HI
MY NAME IS JANICE DICKINSON THE
SUPERVISING ATTORNEY FOR THE
SECRETARY OF STATE'S OFFICE I
REQUESTING AN AUGMENTATION OF
TWO HUNDRED SIXTEEN THOUSAND
FOR FISCAL YEAR. 202-120-2221
ONE MOMENT AND INDEED WE SEEM
TO HAVE SOME KIND OF FEEDBACK
THERE SOME KIND OF. ECHO OR
SOME. WE'RE GOOD. OKAY LET'S
CAN I JUST HAVE YOU COME FROM
ONE TO FIVE. MAKE SURE. ONE TWO
THREE FOUR FIVE THAT WAS TAKEN
CARE OF THANK YOU LET'S
CONTINUE DID YOU MEET TO START
POINT FORWARDER ALLOWING
FORWARD THAT'S FINE. SO WE'RE
REQUESTING AN AUGMENTATION OF
TWO HUNDRED SIXTEEN THOUSAND-
FOR FISCAL YEAR TWENTY TWENTY
ONE TO TWENTY TWENTY TWO AN
ONGOING COST PER FISCAL YEAR OF
SEVENTY NINE THOUSAND FROM THE
BUSINESS HE'S FINE INCLUDING
ONE POSITION AT THE PROGRAM
TECHNICIAN TO LEVEL TO
IMPLEMENT AB THIRTY SEVENTY
FIVE. THESE RESOURCES ARE BEING
REQUESTED TO AFFECT NEEDED SHE
JUST THE STATEMENT OF
INFORMATION ONLINE FILING
APPLICATIONS. WEBSITE CHANGES
FORM UPDATES AND THE ONE
POSITION AT THE PROGRAM
TECHNICIAN TO LEVEL TO DEAL
WITH IT IN ANY INCREASES IN
WORKLOAD AND REJECTIONS. AND
STATUTORY CHANGES IN THE
STATEMENT OF INFORMATION
FILINGS FOR DOMESTIC AND
FOREIGN CORPORATIONS AND
LIMITED LIABILITY COMPANIES.
AND I'D BE HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU FOR THAT
BUT SAID GO TO YOUR COLLEAGUE
PRESENTING WITH THE- NINE SEVEN
NINE. PRESS. NINE THANK YOU
CHAIRED ASSEMBLYMEMBERS MANY
MANY FROM THE SECRETARY OF
STATE'S OFFICE OUR OFFICE
PROVIDES AN AUGMENTATION OF
THREE HUNDRED AND FORTY THREE
THOUSAND PER FISCAL YEAR TWENTY
ONE TWENTY TWO AND THREE
HUNDRED THIRTY THOUSAND THERE
AFTER THIRTY THREE THOUSAND
THEREAFTER ANNUALLY FROM THE
BUSINESS NEEDS FUND TO
ESTABLISH ONE ATTORNEY THREE
POSITION AND ONE ASSOCIATE
GOVERNMENTAL PROGRAM ANALYST
POSITION EITHER NEEDED TO
IMPLEMENT EIGHTY NINE SEVEN
NINE I'M REPRESENTING
COMMUNITIES ON BOARDS RESOURCES
ARE BEING REQUESTED TO ADDRESS-
THE SECRETARY OF STATE NEW
OBLIGATIONS INVOLVING DATA
COLLECTION AND REPORTING
COMPLIANCE. EDUCATING
STAKEHOLDERS AND LITIGATION
DEFENSE WE ASK FOR YOUR SUPPORT.
AND WE'RE HERE TO ANSWER ANY
QUESTIONS YOU MAY HAVE. THANKS
FOR THE M. S. TWENTY LET'S GO
WITH THE LEGISLATIVE ANALYST
OFFICE. NICK SCHROEDER WITH THE
LEGISLATIVE ANALYST'S OFFICE WE
DON'T HAVE ANY ISSUES WITH ANY
OF THESE LEGISLATIVE RECORD
PROPOSALS. THANK YOU DEPARTMENT
OF FINANCE. TOMORROW JOHNSON
DEPARTMENT OF FINANCE WE
SUPPORT THE LEGISLATIVE WORK
LOW PROPOSALS THANK YOU. THANK
YOU ANY COMMENTS OR QUESTIONS
FROM COMMITTEE. OKAY I HAVE ONE
QUESTION A CAN CAN SOMEONE
PLEASE ADDRESS WHY HAVE THE
COST FOR THE CAL EXES PROJECT
GROWN SO MUCH. SO THE QUESTION
FOR THE CONTEST PROJECT IN A
YEAR THAT CORRECTLY. YES OKAY
AND THANK YOU CAN YOU REPEAT
THE QUESTION PLEASE WHY HAVE
THE COSTS FOR THE CALYX THIS
PROJECT GROWN SO MUCH. OKAY SO
ORIGINALLY WHEN THE WHEN WE
ESTIMATED THE AMOUNT OF WE
WERE. IMPLEMENTING UNDER A
PREVIOUS PLATFORM IN A PREVIOUS
VENDOR. HOUSE OF ABOUT A YEAR
AGO WE THOUGHT THAT EFFORT WAS
NOT WORKING FOR CAO ACCESS SO
WE HAD TO- ISSUE A STOP WORK
ORDER. AND SELECT A VENDOR AND
WE ALSO SELECTED PLATFORM WHICH
IS SELL STORES SO THEY'RE
ADDITIONAL CELL LICENSING COSTS
AND OTHER TECHNOLOGY COSTS
RELATED TO. TO THE NEW EFFORT.
I'M SORRY ONE MORE TIME. SO THE
NEW THERE'S A NEW PLATFORM AND
THE NEW SYSTEM INTEGRATOR THAT
WAS SELECTED AS OF ABOUT A YEAR
AGO THAT WE ONBOARDED A NEW
SYSTEM INTEGRATOR AND WE
TRANSITIONED AWAY FROM A
PREVIOUS. EFFORT THAT HAD BEEN
SELECTED IT WAS NOT WORKING FOR
THE COMPLICATED BUSINESS ROLES
REQUIREMENTS. FOR CAL ACCESS
AND SO WE'VE PIVOTED TO A NEW
SYSTEM INTEGRATOR AND PLATFORM
WHICH IS SALES FORCE AND SALES
FORCE HAS ADDITIONAL LICENSING
COSTS AND MAINTENANCE AND
OPERATIONS COSTS THAT. WERE NOT
FORESEEN ABOUT TWO YEARS AGO. I
SAY OKAY SO IT'S- THE
INTEGRATION OF SYSTEMS. THE
INTEGRATION OF SYSTEMS
LICENSING COSTS ADDITIONAL
SOFTWARE IT'S JUST A MUCH MORE
ROBUST SYSTEM WHICH WE LEARNED
DURING THE LAST EFFORT THAT IS
REQUIRED TO SUPPORT A
COMPLICATED AREA OF THE LAW
SUCH AS THE POLITICAL REFORM
ACT. IT'S A COMPLEX SET OF
REQUIREMENTS AND BUSINESS ROLES.
I SAY OKAY THANK YOU I
APPRECIATE THE FEEDBACK IN
TERMS OF HOW DO WE- HOW DO WE
ENSURE THAT WHEN. YOU HAVE AN
ENTITY PERCENT AN IDEA ON WHAT
SOMETHING WILL COST WERE ALSO
TAKEN INTO CONSIDERATION- ANY
ISSUES THAT MAY ARISE AND HOW
WE- TRIED TO. FIGURE OUT A WAY
THAT WE GET THE FULL COST. AT
pTHINKING ABOUT THIS WITH YOUR
DEPARTMENT BUT AS WELL AS FOR
OTHER DEPARTMENTS THAT NEED
SOME. SOME BIG TECHNOLOGY
CHANGES. I APPRECIATE IT THANK
YOU. CORKS WE'RE GOING TO MOVE
ON TO A ISSUE NUMBER NINE THANK
YOU ALL FOR JOINING- THIS IS
BUSINESS SERVICES AND
ADMINISTRATIVE BUDGET PROPOSAL
LET'S START WITH MISS BETSY
BOGARD WITH THE SECRETARY OF
STATE PRESENTING TO PROPOSALS.
THANK YOU CHAIRWOMAN ASSEMBLY
MEMBER. MY NAME IS BETSY BOGARD
I'M THE CHIEF OF THE BUSINESS
PROGRAMS DIVISION AND CO
SPONSOR FOR CALIFORNIA BUSINESS
CONNECT. HOPEFULLY YOU CAN HEAR
ME OKAY YES WE CAN HEAR YOU
FINE. SO THE FIRST PROPOSAL WE
ARE ASKING FOR A CONTINUATION
FOR OUR CALIFORNIA BUSINESS
CONNECT INFORMATION TECHNOLOGY
PROJECT. OF ELEVEN POINT SIX
SEVEN FOUR MILLION OLLARS IN
SPENDING AUTHORITY FOR TWENTY
TWENTY ONE. TWENTY TWO AND
THESE WILL BE PAID FROM THE
FEES BUSINESSES ARE PAYING FOR
OUR SERVICES. EIGHT POINT ONE
SEVEN FROM THE BUSINESS FEES
FINE AND THREE POINT FIVE
MILLION FROM THE BUSINESS.
PROGRAMS MODERNIZATION FUND-
AGAIN THAT WE ARE IN OUR FINAL
PHASE- WE BROKE THIS PROJECT IN
TWO MODULES WHICH YOU WERE
ASKING HOW DO WE MAKE SURE WE-
DELIVER WHAT WE PROMISE- ONE
WAY IS TO BREAK IT INTO SMALLER
MODULES AND- IT'S BEEN WORKING
FOR US WE HAVE IMPLEMENTED THE
FIRST THREE PHASES. AND THEN
THIS FINAL PHASE WILL BRING
BUSINESS ENTITIES- TO FRUITION
IN DECEMBER OF TWENTY TWENTY
ONE THIS YEAR. I ASK FOR YOUR
CONTINUED SUPPORT- TO THE
FUNDING AND HAPPY TO ANSWER ANY
QUESTIONS ON THIS PROPOSAL.
THANK YOU WAS THAT ONE PROPOSAL
THAT YOU TRUSTED OR- WERE WE I
WOULD WANT PROPOSAL FOR
CALIFORNIA BUSINESS CONNECT THE
OTHER WHICH IS SOMEWHAT RELATED
IS FOR THE PROCESSING TIMES.
BUDGET CHANGE ALTHOUGH IF YOU
LIKE ME TO GO INTO THAT I'M
HAPPY TO DO LET'S DO BOTH OF
THEM. A SHORT LIST TO YOUR
COLLEAGUE WHO'S LISTENING AS
WELL WE'LL JUST DO BOTH OF YOUR
PRESENTATIONS FOR BOTH OF THE
PROPOSALS PLEASE. SURE THIS
THIS PROPOSAL FOR PROCESSING
TIMES FOR BUSINESS PROGRAMS
DIVISION IS ALSO A
CONTINUATION. WE ARE ASKING FOR
SPENDING AUTHORITY OF FIVE
POINT ONE ZERO EIGHT MILLION
FROM THE BUSINESS FEES FUND. TO
CONTINUE THE LIMITED TERM
FUNDING OF FORTY SEVEN
POSITIONS- FOR TEMPORARY HELP
AND OVER TIME. TO HELP US-
REDUCE AND MAINTAIN OUR
PROCESSING TIMES TO THE FIVE
BUSINESS DAYS- WE WERE VERY
SUCCESSFUL PRIOR TO KOBE WOULD.
CO THAT HAS PRESENTED SOME
ADDITIONAL CHALLENGES WITH ONLY
HAVING- LESS THAN 25% STAFF IN
THE OFFICE AT A TIME FOR THE
PAPER PROCESSING- SO WE'RE VERY
GRATEFUL THAT WE HAVE HAD- THE
PREVIOUS THREE MODELS FOR
CALIFORNIA BUSINESS CONNECT
THAT HAVE ALLOWED US TO- BETTER
MEET THE NEEDS OF CALIFORNIA
BUSINESSES- HAPPY TO ANSWER ANY
QUESTIONS ON THAT AS WELL-
THANK YOU FOR THAT MS BERGER.
LET'S GO TO YOUR COLLEAGUE MISS
STATEN. PRESENTING THE
ADDITIONAL TWO PROPOSALS. MY
NAME IS GONNA SIX STATEN ON THE
MANAGEMENT SERVICES DIVISION
CHIEF OPERATING SUPPORT AND
OVERSIGHT TO THE ADMINISTRATIVE
AREAS OF THE SECRETARY OF
STATE'S OFFICE WHICH INCLUDES
THE FISCAL AFFAIRS BUREAU OUR
BUSINESS OPERATIONS BUREAU OR
HUMAN RESOURCES BUREAU AND THE
STATE THAT HOME PROGRAM WHICH I
WILL GO OVER UP BOTH PROPOSAL
STARTING ON WITH THE FIRST OF
WHICH IS THE CONTINUATION OF
LIMITED TERM ACCOUNTING
RESOURCES. THIS PROPOSAL BRINGS
FORTH THE REQUEST FOR THE
SECRETARY OF STATE'S ACCOUNTING
AND PROCUREMENT SECTIONS THAT
HAVE INSUFFICIENT STAFF TO
REDUCE ONGOING BACKLOGS THAT
COST STAFF OVERTIME CHALLENGES
WITH EMPLOYEE RETENTION AND
DELAYS IN PAYMENTS AT THE ONSET
OF THE SECRETARY OF STATE'S
TRANSITION ON TO THE DISCOUNT
SYSTEM OF THE SOS IS ALREADY
SIGNIFICANTLY UNDERSTAFFED IN
THESE AREAS WE DID NOT HAVE THE
CORRECT ORGANIZATIONAL
STRUCTURE IN PLACE TO ENSURE
THE SUCCESS OF OUR DISCOUNT
TRANSITION. RIGHT SIZING IN
CREATING THE APPROPRIATE
STRUCTURE ALLOWS FOR THE SOS TO
HAVE DEDICATED RESOURCES TO
OPERATE EFFICIENTLY. FORWARD TO
ADDRESS THESE ISSUES AND
PROVIDE SUFFICIENT STAFFING TO
AVOID ADDITIONAL PROBLEMS THE
SECRETARY OF STATE REQUEST
CONTINUED FUNDING TO SUPPORT
THE TWELVE REQUESTED RESOURCE.
I'M HAPPY TO ANSWER ANY
QUESTIONS THAT BACK. IF YOU
DON'T WANT SOMEONE TO THE NEXT
PROPOSAL LET'S MOVE ON TO THE
NEXT PROPOSAL. FIRST IT CRANKED.
ARM THE SECOND PROPOSAL- IS A
REQUEST- FOR ONGOING- BUT IT'S
HUMAN RESOURCES GROW CRITICAL
ADMINISTRATIVE SUPPORT REQUEST
I TO FIND AT SIX PERMANENT FULL
TIME POSITIONS TO BRING THE
HUMAN RESOURCES BUREAU. ABOUT
STAFFING IN LINE WITH AGENCY
GROWTH. BY THE SECRETARY OF
STATE'S OFFICE WITH GUIDANCE
FOR DECISION MAKING. ENSURE
PROGRAM MANUAL RESOURCES AND
TOOLS ARE DEVELOPED TO ENSURE
COMPLIANCE WITH LAWS AND
REGULATIONS. AND STREAMLINED
INTERNAL PROCESSES TO THE
DIGITIZATION AND MODERNIZATION
PROJECT EFFORTS OCCURRING
WITHIN THE HUMAN RESOURCES
BUREAU. ADDITIONALLY THIS
RESOURCE AUGMENTATION REQUEST
WILL PROVIDE SUFFICIENT
SUPERVISORY ANALYTICAL AND
PROFESSIONAL STAFF TO ADDRESS
THE CRITICAL AND SENSITIVE
PERSONAL MANAGEMENT MATTERS
THAT HAVE HIGH CONSEQUENCES OF
THEIR- THE NUMBER OF EMPLOYEES
OF. EXCUSE ME THE NUMBER OF
EMPLOYEES WITHIN THE ESTO ES
HAS INCREASED FROM FOUR HUNDRED
AND EIGHTY FIVE TO SIX HUNDRED
TWENTY NINE IN THE LAST TEN
YEARS AND I WAS THE SLS HAS
GROWN IN THE NUMBER OF
EMPLOYEES PROGRAMS AND
STATEWIDE PROJECTS THAT HAVE
BEEN. PROPORTIONATE GROWTH IN
WORKLOAD ASSOCIATED WITH
PROVIDING ADMINISTRATIVE
SUPPORT HUMAN RESOURCES BUREAU
HAS RECEIVED MINIMAL INCREASE
IN THE NUMBER OF STAFF DURING
THIS TIME FRAME OF WHICH ONE
HAS BEEN A LIMITED TERM FUNDED
POSITION IN TWO THOUSAND
THIRTEEN FOURTEEN FISCAL YEAR
AND ONE PERMANENT FUNDING
POSITION. IN EIGHTEEN NINETEEN.
THAT'S ACTIVE PRACTICES ARE
CRUCIAL TO THE IMPLEMENTATION
AND SUCCESS OF ANY ORGANIZATION
THIS SPECIFICALLY REQUIRES AN
ADEQUATE LEVEL STAFFING TO
ENSURE TIMELY COMPLETION OF
TASKS AND IMPROVEMENT OF
CURRENT PROCESSES TO HEAR TO
REQUIREMENTS IN ORDER FOR THE
MANAGEMENT SERVICES DIVISION TO
PROVIDE. ASSURANCES ON THE
RELIABILITY AND INTEGRITY OF
INFORMATION AND STRICT
COMPLIANCE IS THE POLICIES
PROCEDURES LAWS AND REGULATIONS.
I'M HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU FOR THAT
CARE FOR MR FOR WITH THE
LEGISLATIVE. OFFICE AN EXTRA
AGAIN OF THE LA- WE HAVE NO
ISSUES WITH THAT THE PROPOSAL'S
MENTIONED. THANK YOU UP MR
JOHNSON WITH THE DEPARTMENT OF
FINANCE. TOMORROW JOHNSON
DEPARTMENT OF FINANCE HAVE
NOTHING TO ADD THANK YOU. THANK
YOU ANY COMMENTS OR QUESTIONS
FROM THE COMMITTEE. NOW SEEING
NONE I DON'T HAVE ANY EITHER WE
CAN MOVE ON TO ISSUE NUMBER TEN
THANK YOU ALL FOR JOINING.
WE'RE MOVING ON TO THE
DEPARTMENT OF ALCOHOL ALCOHOLIC
BEVERAGE CONTROL. ISSUE NUMBER
TEN IS BUSINESS MODERNIZATION A
RESPONSIBLE BEVERAGE SERVICES-
LET'S START WITH MISTER ERIC IT
OUT THOUGH THE DEPARTMENT OF
ALCOHOLIC WHICH ALCOHOLIC
BEVERAGE CONTROL A. B. C. GOOD
AFTERNOON MADAM CHAIR MEMBERS
OF THE COMMITTEE- MY NAME'S
ERIC PRODUCT I'M THE DIRECTOR
FOR THE DEPARTMENT OF ALCOHOLIC
BEVERAGE CONTROL. I IN JANUARY
OF LAST YEAR A. B. C. BEGAN ITS
INFORMATION TECHNOLOGY PROJECT
CALLED THE BUSINESS
MODERNIZATION READ RESPONSIBLE
BEVERAGE SERVICE THIS PROJECT
ALSO KNOWN AS DOES MONITOR IN
RTS PROJECT. ROGER CAST YOU
MAIN OBJECTIVES OF THE
PROJECTED IS TO CREATE A SYSTEM
TO HELP IMPLEMENT THE
RESPONSIBLE BEVERAGE SERVICES
TRAINING PROGRAM AFTER TWENTY
SEVENTEEN- WHICH REQUIRES ALL
OUT FULL SERVICE IN CALIFORNIA
RECEIVE TRAINING ON
RESPONSIBLE. SERVICE THE SECOND
OBJECTIVE IS TO IMPLEMENT
ONLINE SERVICES FOR OUR
LICENSEES- IN A SUCH AS THE
ABILITY TO RENEW A LICENSES
ONLINE. THE ABILITY TO SUBMIT
APPLICATIONS ONLINE. AND
ABILITY TO MAKE ELECTRONIC
PAYMENTS. SINCE THE ORIGINAL
DATE FOR ALL CULTURES RECEIVE
RBS TRAINING WAS JULY ONE
TWENTY TWENTY ONE WE FOCUSED ON
COMPLETING THE RBS PROJECT
FIRST. AND ONCE THAT SYSTEMS IN
PRODUCTION WITHIN SHIFT ARE ARE
FOCUSING EFFORTS ON THE
DEVELOPMENT OF ONLINE SERVICES.
I'M HAPPY TO REPORT THAT RBS
PROJECT IS PROGRESSING WELL-
LAST MONTH OUR RBS PROPONENT
PORTAL WENT INTO PRODUCTION
THEN WE BEGAN DISSECTING
TRAINING PROVIDER APPLICATIONS
ONLINE. AND WITHIN THE NEXT FEW
WEEKS THE RBS PORTAL WILL BE
AVAILABLE TO YOU- ALL ALCOHOL
SERVERS DROPPED CALIFORNIA. I
REQUEST THE REQUEST BEFORE THE
SUBCOMMITTEE IS FOR UP TO
THIRTY YEAR FUNDING FOR THIS
PROJECT. IN CONSISTENT WITH THE
LAST TWO PREVIOUS REQUEST FOR
THIS PROJECT THIS REQUEST IS
JUST A ONE YEAR I REQUEST AS WE
CONTINUALLY. EVALUATE THE NEED.
THE ONE TIME FUNNY WILL LOVE
THE CONTINUATION OF THE
DEPARTMENT'S ONLINE WATER
MODERNIZATION EFFORTS AS WELL
AS MAINTENANCE AND SUPPORT OF
THE RBS SYSTEM. WHICH WILL BE
ESPECIALLY IMPORTANT NEAR THE
END OF THIS BUDGET YEAR
BECAUSE- HE EXPECTED TO
RESPECTIVELY AS HUNDREDS OF
THOUSANDS OF ALCOHOL SERVERS
WILL BE LOOKING TO GET THEIR
TRAINING CERTIFICATE. BUT TO ME
THE MANDATE OF JULY ONE TWENTY
TWENTY TWO. THIS PROPOSAL
REQUEST TWO POINT NINE MILLION
FROM ALCOHOLIC BEVERAGE CONTROL
POINT IN TWENTY TWENTY ONE
TWENTY TWENTY TWO. FOUR ON
BOARD ONGOING SUPPORTING COSTS
FOLLOWING THE COMPLETION OF THE
BUSINESS ON OUR BEHALF PROJECT.
THANK YOU FOR ALLOWING THE
DEPARTMENT TO PRESENT ON THIS
ISSUE THANK YOU FOR YOUR
CONSIDERATION. IN WITH ME TODAY
IS OUR DIVISION CHIEF OF
ADMINISTRATION RAINY TEAMS.
WERE BOTH AVAILABLE TO ANSWER
ANY QUESTIONS THAT. THE
COMMITTEE MAY HAVE. THANK YOU
FOR THAT MISTER ABOUT THE LET'S
GO WITH THE LEGISLATIVE ANALYST
OFFICE MR SODERBERGH. SORT OF
BORED LEGISLATIVE ANALYST'S
OFFICE READ FIVE DID NOT RAISE
ANY CONCERNS WITH THIS PROPOSAL.
THANK YOU MISS MANNING
DEPARTMENT OF FINANCE. CHARLIE
MANNING DEPARTMENT OF FINANCE
WE SUPPORT THIS PROPOSAL AS IT
IS NECESSARY FOR THE ONGOING
SUPPORT AND CONTINUED
DEVELOPMENT OF THE RESPONSIBLE
BEVERAGE SERVICE SYSTEM AND TO
FURTHER IMPROVE ONLINE SERVICES
FOR LICENSEES THANK YOU. THANK
YOU FOR THAT I'LL TAKE A MOMENT
OF PERSONAL PRIVILEGE AND JUST
SAY THANK YOU FOR WORKING ON
IMPROVING THE TECHNOLOGY ASPECT
BECAUSE A- IT'S COME TO OUR
VERY UNIQUE AWARENESS THAT
THERE'S A LOT OF DEPARTMENTS
THAT. COULD DEFINITELY USE A
LOT OF HELP AND IN ENSURING
THAT THEIR I. T. AND TECHNOLOGY
AND THEIR WEBSITES WORK
FUNCTIONALLY SO THANK YOU FOR
THAT WE HAVE NO ADDITIONAL
COMMENTS OR QUESTIONS FROM THE
COMMITTEE. WE CAN MOVE ON TO.
AT ISSUE NUMBER ELEVEN THANK
YOU VERY MUCH. AT ISSUE NUMBER
ELEVEN IS REMOVED LATER TO-
PUBLIC EMPLOYEES RETIREMENT
SYSTEM OF THE STATE TEACHERS
RETIREMENT SYSTEM SUPPLEMENTAL
PAYMENT LET'S HEAR FROM MISTER
SCHROEDER WITH THE LEGISLATIVE
ANALYST'S OFFICE. YEAH HI NICK
SCHROEDER AGAIN- THE
ADMINISTRATION PROPOSES THAT
THE STATE USE PROPOSITION TO
FUNDS TO ACCELERATE THE PACE OF
DATA THE STATE'S RETIREMENT
LIABILITIES. AS THE ATTENDED
INDICATES- THEY'D BE
ADMINISTRATION ASSUES TWO
POINT EIGHT BILLION DOLLARS
WOULD BE USED FOR THIS PURPOSE
WITH. ONE AND A HALF BILLION
DOLLARS IN A SUPPLEMENTAL
PENSION PAYMENT TWARDS THE
STATE'S CALPERS PENSION PLANS
AND- NINE HUNDRED TWENTY SIX
MILLION- GOING TOWARDS RETIREE
HEALTH- AND FORMER TEN MILLION
AS A SUPPLEMENT SUPPLEMENTAL
PENSION PAYMENT TO CAL STIRS.
AS THE AGENDA INDICATES-
PROPOSITION TWO USES A FORMULA
THAT ESTABLISHES THE MINIMUM
AMOUNT OF MONEY THAT THE STATE.
IS REQUIRED EACH YEAR- TO PAY
DOWN SPECIFIED DEBTS- AND THE
EXACT AMOUNT OF MONEY THAT THE
STATE MUST PAY DOWN THE STATE'S
YOU'RE YOU'RE A VARIES
DEPENDING ON THE REVENUES OF
THE GIVEN YEAR IN PARTICULAR-
D. CAPITAL GAINS- AND AS AN
EXAMPLE FOR THAT THE- TYPICAL
AMOUNT OF MONEY THAT'S
DEDICATED FOR PROP TWO IS
ANYWHERE BETWEEN. ONE AND A
HALF BILLION DOLLARS TO TWO
BILLION DOLLARS FOR PURPOSES OF
SPENDING DOWN- THE DEBTS. AND
JUST TO GIVE US THE REAL QUICK
BACKGROUND PROP TO FOR THE
FIRST FEW YEARS PROPOSITION TWO
IS USED PRIMARILY- TO PAY OFF
BUDGETARY BORROWINGS OF THINGS
LIKE SPECIAL FUND LOANS- THEY
WERE GIVEN TO THE GENERAL FUND-
AND ALSO RETIREMENT LIABILITIES
BUT SINCE TWENTY NINETEEN
TWENTY- THE PROPOSITION THAT
TO. OUR PROPERTY DEBT PAYMENTS
HAVE BEEN USED EXCLUSIVELY FOR
A RETIREMENT LIABILITY COSTS
MEANT AS THE AGENT INDICATES
THE STATE HAS SIGNIFICANTLY
LARGE UNFUNDED RETIREMENT
LIABILITIES ABOUT A HUNDRED
EIGHTY SIX BILLION DOLLARS.
ACROSS RETIREE HEALTH CALPERS.
PENSIONS AND CULTURES PENSIONS-
AND THE AS THE INTENDED IN. THE
ADMINISTRATION'S PER. THE
PROPER TO FUNDS IS CONSISTENT
WITH- OUR OFFICES PASS
RECOMMENDATIONS THAT.
PROPOSITION TO FUNDS BE USED TO
KEEP THE FUNDING PLANS FOR THE
RETIREMENT BENEFIT LIABILITIES
ON TRACK TO- RETIRE THESE
LIABILITIES BY- THE MID TWENTY
FORTIES- HAVING SAID ALL THAT
WE THINK THAT THE PROPOSAL'S
MERIT AND- IS CONSISTENT THE
PAST RECOMMENDATIONS WE DO
RECOMMEND. THAT THE LEGISLATURE
HOLD OPEN THE ITEM UNTIL LATER
IN THE PROCESS AFTER MAY
REVISION WHEN WE HAVE MORE
INFORMATION ABOUT- THE STATE'S
REVENUE OUTLOOK FOR AT TWENTY
ONE TWENTY TWO. THANK YOU.
THANK YOU YOU RAISE A VALID
POINTS- DEPARTMENT OF FINANCE.
GEVINSON TORO. THANK YOU FOR
YOUR ARE GETTING. YEAH. IN
ADDITION TO THE SHUTTERS
COMMENTS IS BACK ON THE AGENDA
DESPITE THE ESTIMATED SAVINGS
BUT THE BOOK HONORED TEN
MILLION DOLLARS. TO TELL
STORIES I MEAN. MY CENTER LET
ME PAY YOU IT SEEMS THERE'S AN
ECHO. YOUR IT SOUNDS A LITTLE
MUFFLED LET'S TRY SWITCHING OFF
YOUR VIDEO SO THAT WE CAN JUST
HEAR YOUR AUDIO IF THAT'S THAT
MIGHT BE A LITTLE BIT BETTER.
SIR CAN YOU HEAR ME BETTER NOW.
LET'S TRY AGAIN COUNT FROM ONE
TO FIVE PLEASE. ONE TWO YES
MUCH BETTER VERY. THANK YOU.
THE ONLY COMMENT THAT WE HAVE
IN ADDITION TO MR SHARES
COMMENTS IS THAT NEED A
GENOCIDE SPEED THAT SAVINGS
ESTIMATED ONE HUNDRED TEN
MILLION DOLLAR CROPS YOU. YES
THEY'RE GONNA THIRTEEN MILLION
I WHERE IS IT. IS DIFFICULT TO
TWENTY THREE MILLION. THANK YOU
FOR THAT MISS MANNING ARE THERE
ANY COMMENTS OR QUESTIONS FROM
THE COMMITTEE. JUST REAL
QUICKLY YES MISTER LUCKY JUST
WANT TO MAKE THE- REMARK THAT
IT. THIS IS CLEARLY A VERY
SUPPORTABLE SET OF
CIRCUMSTANCES BUT THE- THE
DEFICIT AS WAS. MENTION OF
EIGHTY SIX BILLION IT IS STILL
IN. IN THE FOREFRONT AND WE
SHOULD BE MINDFUL OF REMEDIES
TO TRY TO AT LEAST TO KEEP THAT
FROM GROWING. AND ANY ANY STEPS
WE CAN MAKE TO- REDUCE THAT
BEST INTERESTS AND THOSE WHO
READ. ACT ACTUALLY RELY ON
THOSE FUNDS. THANK YOU FOR
THAT- MISTER LACKING ANY
ADDITIONAL COMMENTS OR
QUESTIONS SEEN NONE I DON'T
HAVE ANY ADDITIONAL COMMENTS OR
QUESTIONS AT THIS TIME WE CAN
MOVE ON TO- ISSUE NUMBER ELEVEN
THANK YOU ALL FOR JOINING.
LET'S I'M SORRY THAT WAS ISSUE
NUMBER ELEVEN OR GOING ON TO
ISSUE NUMBER TWELVE. A STATE
TEACHERS RETIREMENT SYSTEM
MULTI YEAR INTERNAL MANAGEMENT
PLAN IS ISSUE NUMBER TWELVE
LET'S START WITH OUR PANELISTS
MR LEE UNDER WORD- WITH CAL
STARS. HI GOOD AFTERNOON JUST
WANTED YOU MIGHT CHECK YOU CAN
HEAR ME OKAY YES WE CAN HEAR
YOU FINE THANK YOU. CHEN ANY
I'M SORRY GO AHEAD. THANK YOU
MY NAME IS JULIE UNDERWOOD AND
I AM THE CHIEF FINANCIAL
OFFICER OF THE CALIFORNIA STATE
TEACHERS RETIREMENT SYSTEM THIS
ITEM DOES SUMMARIZE CASTERS
MULTI YEAR INTERNAL INVESTMENT
MANAGEMENT BCP THAT HAS BEEN
APPROVED BY THE TEACHERS
RETIREMENT BOARD MEMBERS PCP
ALIGNS WITH OUR INVESTMENT
BELIEVE NUMBER THREE WHICH IS
MANAGING INVESTMENT COSTS
YIELDS LONG TERM BENEFITS IN
OUR STRATEGIC PLAN GOAL TO
CONTINUE THE IMPLEMENTATION OF
THE COLLABORATIVE MODEL BY
LEVERAGING CAL STIRS RESOURCES.
NOW THIS PLAN PROVIDES FOR A
HUNDRED AND FOUR POSITIONS TO
BE UTILIZED OVER A FIVE YEAR
PERIOD AT A BUDGETARY COST OF
THIRTY EIGHT POINT TWO MILLION
NOW THESE POSITIONS WILL BE
DEPLOYED OVER SIXTEEN DIFFERENT
ASSET CLASSES AND BUSINESS
AREAS THROUGHOUT THE
ORGANIZATION THAT WILL BE USED
TO SUPPORT THE GROWTH IN ASSETS
UNDER MANAGEMENT AND THE GROWTH
IN THE COLLABORATIVE MODEL
WHICH IS AN INVESTMENT STRATEGY
TO MOVE MORE. INVESTMENTS TO
INTERNAL MANAGEMENT. I PROBABLY
JUST RICA WITH FORTY PER. OF
OUR NET ASSET VALUE IS MANAGED
BY EXTERNAL MANAGERS THAT THAT
COSTS APPROXIMATELY ONE BILLION
DOLLARS NOW THAT'S COMPARED TO
THREE HUNDRED AND SIXTY SIX
MILLION DOLLARS. FOR INTERNAL
AND HYBRID MANAGEMENT. MY
PERMANENT RETURNS PERSPECTIVE
INTERNAL MANAGEMENT IS
APPROXIMATELY ONE TENTH OF THE
COST COMPARED TO HIRING
EXTERNAL MANAGERS. AND WE'VE
ALREADY ACHIEVED QUITE
IMPRESSIVE COST SAVINGS AS WE
STARTED GROWING THIS MODEL SO
WANTED TO GIVE YOU A COUPLE
EXAMPLES OVER THE LAST THREE
AND A HALF YEARS. WE FUNDED SIX
BILLION AN INTERNALLY MANAGED
PORTFOLIOS SAVING APPROXIMATELY
NINETEEN MILLION DOLLARS WE
ALSO ENTERED INTO A HYBRID CO
INVESTMENT THAT WILL REDUCE
INCENTIVES AND FEES OF
APPROXIMATELY FIVE HUNDRED
BILLION DOLLARS. OVER THE NEXT
FIVE YEARS. AND A RECENT DIRECT
MARKETING INVESTMENT REDUCE THE
STANDARD. FEES BY 50% SO WE HAD
AN APPROXIMATELY TEN YEARS TO
SEE ROUGHLY TWO HUNDRED TO
THREE HUNDRED MILLION AN ANNUAL
COST SAVINGS AND INCREASED
RETURNS AS WE GROW THIS MODEL.
THE OVERALL THIS IS THE COST
SAVINGS INITIATIVE IT WILL
ULTIMATELY PROVIDE LONG TERM
COST SAVINGS TO THE TEACHERS
RETIREMENT FUND WHICH SUPPORTS
THE STATE'S DIRECTIVES TO
MITIGATE COSTS. NOW THESE
EFFORTS ARE PROJECTED TO FAR
OUTWEIGH THE COST OF THIS
REQUEST LONG TERM AND COULD
CREATE ENOUGH SAVINGS TO KEEP
ANNUAL PORTFOLIO CLASS AT OUR
CURRENT LEVELS TEN YEARS FROM
NOW. DESPITE THE PORTFOLIO
GROWING BY A PROJECTED FIFTY
PERCENT. YEAH WE DO RECOGNIZE
THAT THIS IS A LARGE ADDITION
TO RESOURCES DURING AN
UNPRECEDENTED TIME SO OUR GOAL
IS TO BE TRANSPARENT AND
ACCOUNTABLE FOR THE COST
SAVINGS THAT WE ACHIEVED
THROUGH THIS MODEL. SERVER
INVOKES. COUNTRY COURTS THAT
ARE PRESENTED TO OUR BOARD JUST
YOUR SUCCESS OVER TIME AND
GROWING THE MODEL. SO WHICH ARE
DEPUTY CHIEF INVESTMENT OFFICER
IS ALSO AVAILABLE TODAY AND WE
WILL BE. HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE. THANK
YOU WOULD HAVE MISTER SCOTT
CHAN. YES. MR COUNTY LIKE TO
ADD ANYTHING. BEFORE WE GO ON
TO OTHER PANELISTS. I THINK YOU
WE COVERED IT VERY WELL THANK
YOU THANK YOU LET'S GO WITH THE
DEPARTMENT OF FINANCE PLEASE. I
IN MY BOOK WITH THE DEPARTMENT
OF FINANCE. WILL SUPPORTIVE OF
CUSTOMERS. FOR THEIR ATTEMPTS
TO IMPLEMENT THE COLLABORATIVE
MODEL AND BRING MORE ASSETS
UNDER MANAGEMENT. WITH NO
ADDITIONAL COMMENTS ON THIS.
THANK YOU FOR THAT AT THE
LEGISLATIVE ANALYST'S OFFICE
PLEASE. THE NEXT ROTOR AGAIN
WITH THE L. A. O. WE RAISE NO
CONCERNS WITH THE PROPOSAL.
THANK YOU ANY COMMENTS OR
QUESTIONS FROM THE COMMITTEE.
ONE OTHER QUESTION FOR ME CAN
YOU PLEASE CAN YOU PLEASE
PROVIDE MORE INFORMATION AS TO
HOW THERE IS LEGISLATIVE
OVERSIGHT IN THE PROCESS THAT
ALLOWS FOR CAL STIRS
ADMINISTRATIVE AUTHORITY TO
AUGMENT THEIR BUDGET AS NEEDED.
MISS UNDER WHAT. OR MR CHAN.
SORRY I'M JUST MAKE SURE MY
VIDEOS BACK UP. CAN YOU HEAR ME
OK RIGHT YEAH I TOOK IT OVER
AGAIN CFO CASTERS- SO WE ARE
COMMITTED TO WORKING WITH THE
DEPARTMENT OF FINANCE FOR ANY
OF LEGISLATIVE INFORMATION
THAT'S NEEDED TO ENSURE THAT WE
PROVIDE TRANSPARENCY AND
ACCOUNTABILITY. FOR THIS ACTION
THAT WERE REQUESTING TODAY. BUT
DOES THAT LEGISLATIVE OVERSIGHT
EXISTS NOW. I AM NOT AWARE OF
IT NOW. OKAY. THANK YOU FOR
THAT MUCH UNDER WITH NO
ADDITIONAL COMMENTS OR
QUESTIONS WE CAN MOVE ON TO THE
NEXT PANEL. THANK YOU FOR THAT
AT THE NEXT TO ISSUE IS RELATED
TO THE STATE TREASURER ISSUE
NUMBER THIRTEEN ELECTRONIC
RESOURCES AUGMENTATION OUR
FIRST PANELISTS- IS WITH THE
STATE TREASURER'S OFFICE. THANK
YOU BERMAN AND ASSEMBLY MEMBERS
I AM CHRISTENSEN KELLY MOORE
FROM THE STATE TREASURER'S
OFFICE INVESTMENT DIVISION. THE
INVESTMENT DIVISION IS
RESPONSIBLE FOR INVESTING
TEMPORARY I DON'T FUNDS THAT
ARE PART OF THE POOL OF MONEY
INVESTMENT ACCOUNT OTHERWISE
KNOWN AS THE CAMPAñA. ARE
PROPOSAL TODAY REQUESTED
ONGOING AUGMENTATION OF FOUR
HUNDRED THOUSAND DOLLARS IN
REIMBURSEMENTS TO MEET THE
INCREASING COSTS OF ELECTRONIC
SERVICES THAT ARE NECESSARY TO
SAFELY AND PRUDENTLY INVEST
STATE AND LOCAL GOVERNMENT
MONEY FOR THAT PMR YANG. THESE
SERVICES INCLUDE SUBSCRIPTIONS
TO CREDIT RATING AGENCIES SUCH
AS STANDARD AND POOR'S MOODY'S
AND FITCH AS WELL AS TO
ELECTRONIC TRADING PLATFORMS
SUCH AS BLOOMBERG AND
REPRESENTATIVES THAT PROVIDE
REAL TIME MARKET PRICING
INFORMATION. AMONG OTHER
FEATURES VARIOUS DALY AND
SUPPLY NEEDED INFORMATION THAT
ENSURE STATUTORY REQUIREMENTS
ARE MET. HELP TO SAFEGUARD
BALLOT PRICING OF INVESTMENTS
THAT WE PURCHASE AND SELL AND
ALSO PREVENT THE PURCHASE OF
RISKY SECURITIES. THAT PMI NAY
WHICH INCLUDES THE GENERAL FUND
SURPLUS MONEY INVESTMENT FUND
AND LOCAL AGENCY INVESTMENT
FUND. GREW BY OVER THIRTY
BILLION BETWEEN TWO THOUSAND
FIFTEEN AND TWO THOUSAND
TWENTY. AND IN THIS YEAR HAS
RISEN TO OVER A HUNDRED TWENTY
BILLION GIVEN THE GROWTH THAT
THIS ACCOUNT THE ELECTRONIC
SUBSCRIPTIONS USED ARE VITAL TO
THE TREASURER'S OFFICE BUSINESS
AND OPERATIONS FUNCTIONS. AND
ENSURE THAT IT THE BILL'S
OBLIGATIONS FOR SAFE AND
PRUDENT INVESTMENT OF TAXPAYER
MONEY. OVER THE PAST FIVE YEARS
THAT COSTS FOR ELECTRONICS OF
PRESCRIPTIONS HAS INCREASED
BETWEEN APPROXIMATELY 5210%
ANNUALLY. IN OUR CURRENT
REIMBURSEMENT AUTHORITY IS
INSUFFICIENT TO COVER THESE
INCREASES GOING FORWARD-
THEREFORE THE PROPOSED
AUGMENTATION WOULD ALLOW US TO
MAINTAIN CURRENT ELECTRONIC
SUBSCRIPTION LEVELS FOR SEVERAL
YEARS. WITH THE INCREASED
REIMBURSEMENTS COMING FROM
PARTICIPANTS IN THE CAMPAñA
SPECIFICALLY THE SURPLUS MONEY
INVESTMENT FUND AND LOCAL
AGENCY INVESTMENT FUND
PARTICIPANTS. THAT DIRECTLY
BENEFIT FROM THE INVESTMENT
DECISIONS INFORMED BY THESE
ELECTRONIC SUBSCRIPTION
SERVICES. I THANK YOU FOR THE
OPPORTUNITY TO PRESENT OUR
PROPOSAL TODAY. AND I'D BE
HAPPY TO ANSWER ANY QUESTIONS.
THANK FOR THAT LET'S HEAR THE
ALLEGED ANALYST'S OFFICE. GOOD
AFTERNOON UNITS ROAD BALLET- WE
HAVE NO CONSTRAINTS THE
PROPOSAL. THANK YOU DEPARTMENT
FINANCE. JIM DOYLE DEPARTMENT
OF FINANCE AND WE HAVE NO
CONCERNS WITH THE PROPOSAL. ALL
RIGHT THANK YOU VERY MUCH ANY
COMMENTS OR QUESTIONS FROM
COMMITTEE. SEEN NONE I ALSO
DON'T HAVE ANY COMMENTS OR
QUESTIONS LET'S MOVE ON TO
ISSUE NUMBER FOURTEEN THANK YOU
ALL FOR JOINING. AT ISSUE
NUMBER FOURTEEN IS RELATED TO
THE CALIFORNIA ACHIEVING A
BETTER LIFE EXPERIENCE ACT
BOARD. OF ISSUE FOURTEEN IS THE
CONTINUED ADMINISTRATION OF THE
CAL ABLE BOARD LISTS- GO WITH
OUR FIRST PANELIST- MISTER
DANTE ALLEN. ARE YOU ABLE TO
HEAR ME YES. GOOD AFTERNOON MY
NAME IS DANTE ALLEN I'VE SERVED
AS THE EXECUTIVE DIRECTOR OF
THE CALIFORNIA ABLE LIKE BOARD
SINCE JANUARY OF TWENTY
EIGHTEEN. IN TWENTY FOURTEEN
CONGRESS PASSED THE FEDERAL
ACHIEVING BETTER LIFE
EXPERIENCES THAT. THIS CHANGE
TO THE IRS TAX CODE PROVIDE AN
OPPORTUNITY FOR PEOPLE WITH
DISABILITIES TO SAVE AND INVEST
IN TAX ADVANTAGED ACCOUNTS FOR
THE PURPOSES OF BUILDING EQUITY
IN ORDER TO PAY FOR THE ADDED
EXPENSES OF LIVING A LIFE WITH
A DISABILITY. THESE ACCOUNTS
ALSO PREDICT PROVIDED
PROTECTION FOR INDIVIDUALS TO
MAINTAIN THEM ELIGIBILITY. FOR
GOVERNMENT BENEFIT PROGRAMS
LIKE SSI AND MEDICAID. EVEN
WHEN EXITING THE ASSET LIMIT.
OF THESE PROGRAMS BY
ACCUMULATING MORE THAN TWO
THOUSAND DOLLARS. ABLE PROVIDE
THE MUCH NEEDED ECONOMIC BRIDGE
FOR PEOPLE DISABILITIES TO
BREAK THE CYCLE OF POVERTY THAT
IS FAR TOO COMMON AMONGST THE
COMMUNITY. SIMPLY PUT ABLE
ALLOWS PEOPLE WITH DISABILITIES
TO PLAN AND SAVE FOR THEIR
FINANCIAL FUTURES IN A WAY THAT
WAS NEVER PREVIOUSLY POSSIBLE.
CALIFORNIA'S LEGISLATION
ENABLING THE FORMATION OF
CALAIS VOTE WAS PASSED IN
TWENTY FIFTEEN AND THE PROGRAM
OPEN TO THE PUBLIC IN DECEMBER
OF TWENTY EIGHT EIGHTEEN. AT
THE FORTY FIRST ABLE PROGRAM IN
THE NATION. IN OUR FIRST TWO
YEARS OF OPERATION NEARLY FORTY
TWO HUNDRED TALLY BLOOD COUNTS
HAVE BEEN OPENED WITH MORE THAN
THIRTY SIX MILLION DOLLARS IN
ASSETS UNDER MANAGEMENT WITHIN
THE PROGRAM. CALIFORNIA HAS
QUICKLY GROWN GROWN TO THE
FIFTH LARGEST ABLE PROGRAM IN
BOTH ACCOUNTS AND ASSETS.
DESPITE COMING ONLINE THREE
YEARS AFTER THE OLDEST AND
LARGEST ABLE PROGRAM STATES
FIRST BEGAN. WE'RE ON TRACK TO
OVERTAKE THEM AND BECOME THE
NATION'S LARGEST ABLE PROGRAM.
IN THE FIRST YEARS OF OPERATION
WE HAVE LEARNED MANY LESSONS-
FIRST AMONG THOSE GOOD BACK
THERE OBSTACLES IMPEDING ABLE
FROM REACHING ITS FULL
POTENTIAL- TO BE EMBRACED BY
ALL WHO ARE ELIGIBLE. TO BE
SURE AWARENESS OF THE PROGRAM
IN THE NEED TO INSTILL TRUST-
TO BUILD THESE ACCOUNTS STILL
EXIST- AN EXPANSION OF THE ABLE
ELIGIBLE POPULATION BEYOND THE
DISABILITY OUTSIDE OF TWENTY
SIX YEARS THEY WERE LEGISLATIVE
FIX. IS CURRENTLY UNDERWAY AT
THE FEDERAL LEVEL AND IS ALSO A
KEY DRIVER FOR CONTINUE ABLE
SUCCESS. THE OTHER CRITICAL
LESSON THAT WE'VE LEARNED IN
THE FIRST TWO YEARS OF COLLEGE
BALL IS THAT THE ASSUMPTIONS
MADE PRIOR TO ESTABLISHING
CALIFORNIA THEY BLACK WERE
INACCURATE. THE GROWTH COME AT
A SMALLER PLACE THAN ORIGINALLY
ESTIMATED. AND THE WAY THEY
WHICH ACCOUNT HOLDERS ARE USING
THEIR ACCOUNTS VERY VASTLY.
FROM THE FIVE TWENTY NINE
COLLEGE SAVINGS PROGRAM THAT
ABEL WAS MODELED AFTER.
TRANSACTION A COMPONENT OF ABLE
WHICH IS NOT A FEATURE OF
COLLEGE SAVINGS PROGRAMS ME
THAT ASSETS HELD IN ABLE
ACCOUNTS HAVE GENERATED LESS
REVENUE THAN ORIGINALLY
PROJECTED. WHICH WILL RESULT IN
A LONGER THAN EXPECTED TIMELINE
FOR CALIFORNIA TO ACHIEVE SELF
SUSTAINABILITY AND REPAY THE
GENERAL FUND LOANS THAT SUPPORT
THE PROGRAM SINCE ITS INCEPTION.
IN ORDER TO ACCELERATE OUR
ABILITY TO ACHIEVE SELF
SUSTAINABILITY AND REPAY THE
LOANS THAT ARE FUNDED CAL ABLE
ON BEHALF. ON BEHALF OF THE
BOARD WE HAVE SUBMITTED A
BUDGET CHANGE PROPOSAL THAT
REQUEST THAT FUNDING FOR CALLIE
WILL SHIFT FROM LOANS TO AN
ANNUAL APPROPRIATION UNTIL THE-
THE POINT THAT THE PROGRAM
REACHES SELF SUSTAINABILITY. AN
ANNUAL APPROPRIATION WILL
ELIMINATE THE NEED FOR FUTURE
LOANS AND CAPITAL TO LAUNCH FOR
REPAYMENT. WITH INVESTMENT ON
BEHALF OF THE STATE IS AN
ESSENTIAL STEP IN THE LONG TERM
VIABILITY OF THIS PROGRAM THEN
HELP SUPPORT FINANCIAL EQUITY
AMONG ONE OF THE STATE'S MOST
UNDERSERVED COMMUNITIES PEOPLE
WITH DISABILITIES. WE EXPECT
THE ANNUAL APPROPRIATION TO
COVER SHORTFALLS BETWEEN
OPERATING COSTS AND REVENUE
GENERATED. UNTIL CELLS WITHIN
ABILITY CAN BE REACHED. IN
GROWTH OF ACCOUNTS AND ASSETS
WILL BE THE KEY DRIVERS FOR
SUSTAINABILITY. ONE SELF
SUSTAINABLE CALIBER WILL NO
LONGER NEED FUNDING FROM THE
STATE. AND WHILE CALIBER COULD
CONTINUE TO RELY UPON THINKING
ADDITIONAL LOANS RATHER THAN A
NON. ANNUAL APPROPRIATION OUR
CURRENT GROWTH PROJECTIONS
ESTIMATE THE PROGRAM WOULD
DOUBLE THE AMOUNT OF LOANS
ALREADY RECEIVED AND EXTEND THE
TIME FOR REPAYMENT. I REQUEST
FOR AN ANNUAL APPROPRIATION IS
MODELED AFTER SEVERAL STATES
THAT THE POLICY IS BEING PASSED.
I'M HAPPY TO TAKE ANY QUESTIONS
THAT YOU HAVE AT THIS POIN.
THANK YOU MISTER ALLEN LET'S
HEAR FROM THE LEGISLATIVE
ANALYST'S OFFICE. HELLO ARE YOU
TO THROW IT THAT WAY OUT- WE
HAVE NO CONCERNS WITH THE
PROPOSAL- AS LONG AS THE
PROGRAM REMAINS THE LEGISLATIVE
PRIORITIES FIND THE SHIFT IN
APPROACH FROM LOAN TO
APPROPRIATIONS FROM THE GENERAL
FUND AND- THE REASON. AT LEAST
UNTIL THE PROGRAM REACHES SELF
SUSTAINABILITY- COMMITTEE STAFF
NOTED THE LEGISLATURE MAY WANT
TO CONSIDER REQUESTING
ADDITIONAL INFORMATION ON-
WENDY YEAH THAT'S PART OF THE
PROGRAM WILL BE TOUGH THE THING
ABILITY AND KIND OF ONGOING
OVERSIGHT- REGARDING- INSURE
WEDNESDAY AT APPROPRIATIONS
BILL. FOR AN- THANK YOU FOR
THAT DEPARTMENT OF FINANCE. YOU
KNOW HOW DEPARTMENT OF FINANCE
FINANCE SUPPORTS THE PROPOSAL.
I'M SORRY ONE MORE TIME.
BINANCE SUPPORTS THE PROPOSAL
SUPPORT. OKAY THANK YOU ANY
COMMENTS OR QUESTIONS FROM
COMMITTEE MISTER COOPER IS
MANAGER OF MR ALLEN WAS THE
TOTAL AMOUNT OF GENERAL FUND
LOANS ISSUE TO DATE. TO DATE WE
ARE JUST OVER FOUR POINT EIGHT
MILLION. AND WHAT'S THE AMOUNT
OF GENERAL FUND LOANS REPAID
TODAY. ZERO WE HAVE NOT BE
GIVEN REPAYMENT OF LONG JET.
THE STAFF ANALYSIS POINTS OUT
THAT BASED ON THE CURRENT FEE
STRUCTURES IS ESTIMATED
EXPENSES WILL CONTINUE TO
OUTPACE REVENUE THE PROGRAM
ILL NOT ACHIEVE SELF
SUSTAINABILITY FOR SOMETIME-
ALWAYS THAT'S REASON YOU WANT
TO GO FROM THE LOANS TO THE
GENERAL FUND MONEY. GIVE AN
ESTIMATE ON WHEN THE PROGRAM
WILL ACHIEVE SELF
SUSTAINABILITY. WE DO WE'VE
DONE- GROWTH PROJECTIONS AND
LIKE- LIKE I SAID PREVIOUSLY-
GROWTH OF THE PROGRAM IN A
DOWNTURN OUT THAT. WILL BE THE
PRIMARY DRIVER OF THE- I'M
BASED ON TWO SEPARATE SCENARIOS
WE SEE THE PROGRAM- IN A
MODERATE CASE ACHIEVING SELF
SUSTAINABILITY- BY- FISCAL YEAR
TWENTY THIRTY- ED ARE LOWER
CASE THEY COULD GO OUT- INTO
THE TWENTY FORTY. SO WE'RE
TALKING A BEST CASE SCENARIO
SAID MODERATES GONNA BE TEN
YEARS WORST CASE SCENARIO
TWENTY YEARS SO I MEAN THE
PROGRAMS A VERY WORTHWHILE AND
GREAT PROGRAM BUT- STILL WITH.
ME WHAT. DO WE HAVE DIRECT TO
GUARANTEE AYE I GUESS FOR LACK
OF A BETTER WORD THAT THIS
PROGRAM WILL EVENTUALLY SUCCEED.
YEAH THAT SAID SO THEY ARE
NEVER QUESTION THAT I THINK
THAT THAT IS. A GREAT ISSUE BUT
THEIR NUMBER VARIABLES- BUT THE
PRIMARY VERY WELL LIKE I SAID
IS ELIGIBILITY AND IT'S BEEN
BASED ON- THE DISABILITY
BEGINNING BEFORE- AND ARBITRARY
AGE OF TWENTY SIX- THERE'S BEEN
SUBSTANTIAL MOVEMENT ON THAT ON
THE FEDERAL LEVEL TO RAISE THAT
TO. FORTY SIX THAT WILL VASTLY
IMPROVE THE ELIGIBILITY
POPULATION AND COULD
SIGNIFICANTLY IMPACT THE GROWTH
NUMBERS THAT WE HAVE- PROJECTED
CURRENTLY. BOB I THINK THAT
WOULD BE THE OVERALL ACCEPTANCE
OF THE PROGRAM- HAS BEEN STRONG
AND THAT- NATIONWIDE- BUT THE
REALITY IS THAT IT WILL TAKE
TIME TO- TO GENERATE THESE- TO
GENERATE THE ACCOUNT UP. THE
AMOUNT OF- OF GROWTH THAT WE
NEED. I THANK YOU YOUR SURE
WILL NOT NONE OF US WILL BE
HERE AND IN TEN YEARS LEVEL IN
TWENTY YEARS SO I GUESS IS JUST
TRYING TO BE GOOD STEWARDS OF
THE PUBLIC'S MONEY IN OTHER
THERE REALLY ARE NO GUARANTEES
THAT IT THAT IT WILL DO IT SO
AT WHAT POINT- YOU KNOW WHAT
WOULD BE THE- IT'S JUST COMING
BACK FROM FOR MORE MONEY- SO
WHAT POINT DO WE- DO WE- CAN'T
WAIT ANOTHER TEN YEARS BECAUSE-
TO A TEN MORE YEARS TILL TWENTY
THIRTY. THE PROGRAM ALL BEEN
EXISTENCE WHAT. SIXTEEN YEARS-
IT'S BEEN EXISTENCE HOW LONG
NOW SIX YEARS- IT TOOK TWO
YEARS. AGO TWO YEARS THAT OF
THOSE TWELVE YEARS SO THAT THAT
THAT'S THAT'S THE DIFFICULT
PART BECAUSE WHAT'S TO SAY
YOU'RE GOING TO COME BACK IN L.
LYING YEARS FOR ADDITIONAL
FUNDS BEFORE YOU REACH TWENTY
THIRTY. THE WHERE YOU'RE GOING
RIGHT NOW THE MODEL THAT CAN.
PARDON I'M SORRY I DIDN'T MEAN
IT I DIDN'T MEAN TO INTERRUPT
THAT I THINK THAT WE HAVE A
MODEL THAT WE CAN- COMPARE
OURSELVES TO IS THE CALIFORNIA
SCHOLARSHIP PROGRAM- WHICH
TOOK- SEVEN YEARS AFTER
BEGINNING BEFORE- IT REPAID ITS
LOANS THERE ARE SOME MAJOR
DIFFERENCES BETWEEN THE TWO
DIFFERENT PROGRAMS- ESPECIALLY
HOURS GIVEN THE ELIGIBILITY
REQUIREMENTS ARE DIFFERENT AND
THEN THE AMOUNT OF TIME AND
RESOURCES THAT ARE HELD IN
THESE ACCOUNTS ARE SLIGHTLY
DIFFERENT- BUT THEY ARE SIMILAR
TO COMPARE- THAT THEY DID
EVENTUALLY ACHIEVE THAT LEVEL
OF SELF SUSTAINABILITY. BUT BUT
ON THEIR PRODUCT THEY REPAID
THE LOANS YOU'RE ASKING FOR
GENERAL FUND MONEY TODAY WHICH
WILL NOT BE REPAID. SO THERE'S
A STRICTLY JEFF FROM FOR LOANS
AND YOU'RE GONNA HAVE A MIXTURE
BECAUSE GOING FOR THE CELLS
LIKE IT WILL BE GENERAL FUND
LOANS. THIS IS THE GENERAL FUND
MONEY. CORRECT AND THAT'S%
BUT ONE OF THE- LARGEST
ELEMENTS IN THE LOANS THAT
WE'VE TAKEN WITH THE START UP
COSTS- AND SO- THE GENERAL FUND
APPROPRIATION WILL BE
SIGNIFICANTLY LESS THAN. WHAT
IT ACTUALLY COSTS TO GET THE
PROGRAM UP AND RUNNING. OKAY
I'LL ACCEPT A SUPPORT THE
PROGRAM LASSEN GRAVE CONCERNS.
ABOUT YOU KNOW SUSTAINABILITY
FOR THE PROGRAM THANK YOU
MANAGER. SLACKING YEAH HI I
SURE IN THE CONCERN WITH THE
CURRENT MODEL THE WAY THAT IT'S
SET UP BUT- THE FACT THAT WERE
WORRIED OVER FIVE MILLION
DOLLARS FOR SUCH A- POWERFUL
RETURN I THINK IS- SAD I MEAN.
IN ALL HONESTY FIVE MILLION
DOLLARS AND MOST THESE ISSUES
THAT WE'RE TALKING ABOUT IS A
VERY SMALL NUMBER. AND WHAT WE
GET IN RETURN FOR THAT FIVE
MILLION DOLLARS WE NEED TO FIND
A DIFFERENT WAY. TO FIND YOUR
PROGRAM IS MY OPINION SIR. AND
BE HAPPY TO HELP YOU IN
WHATEVER WAY. I NEED TO BE ABLE
TO HELP YOU TO FIND THAT
FUNDING STREAM. WHAT THANK YOU
LET THAT MISTER LUCKY I HAVE A
QUICK A COUPLE OF QUESTIONS FOR
YOU- MISTER ALAN CAN YOU PLEASE
REMIND THE SUBCOMMITTEE WHY A
GENERAL FUND LOAN WAS FIRST USE
THAN WHY NOT A GENERAL FUND
APPROPRIATION TO ADDRESS SOME
OF THE CONCERNS. THAT HAVE BEEN
RAISED TODAY WITH THE PROGRAM.
THAT THAT DOES- PREDATES ME
SLIGHTLY- BUT I CAN OFFER- BACK
TALLIED BOWL WAS STRUCTURED
VERY SIMILARLY TO- THE
PREVIOUS- COLLEGE SAVINGS
PROGRAMS THAT I'VE MENTIONED-
AND SO- PART OF THE RATIONALE
IS THAT- THAT. IT IS THE
EXPECTATION THAT THIS PROGRAM
WILL RESELL SUSTAINABILITY AND
BE ABLE TO HAVE- EXCESS IN
REVENUE THAT CAN REPAY THOSE
LOANS. AND SO THE ABILITY FOR
IT TO- TO STAND ON ITS OWN WAS.
WAS PRIMARILY DRIVING FORCE. I
SEE THANK YOU I'M IN A KNOW
THAT YOU TOUCHED UPON IT
BRIEFLY BY IT CAN YOU- THE
TIMING FOR THE LOAN. AND ALSO A
TIE WE THE ON CHEN FUND UP.
OLAND SO THE X. IS THAT WE
WOULD ACHIEVE SELF
SUSTAINABILITY BY- YOU'RE
TWENTY THIRTY INCLUDE THAT SO
I'M- SORT OF AND A NINE YEAR
TIMELINE THAT WE'RE LOOKING AT-
AND- LOAN REPAYMENT WHAT WERE
ONCE WE REACH THAT LEVEL OF
SELF SUSTAINABILITY- WE WILL NO
LONGER. REQUIRE ANY STATE
FUNDING- AND USE- ACCESS
REVENUE IN ORDER TO FULLY
REPAIR BILLS WHILE. SO OUR
EXTENDED HORIZON FOR LOAN
REPAYMENT WOULD TAKE US TO
ABOUT TWENTY THIRTY EIGHT. WELL
THANK THANK YOU FOR THAT I
THINK IT'S INSIGHTFUL TO HEAR-
JUST REALLY THE LENGTH OF TIME
THAT IT'S GOING TO TAKE YES
MISTER COOPER YES I- EXCEL NOT
BE A HARD BUT YOU KNOW FOR THE
FOR LACK OF A BETTER WORD BUT
MAYBE I'LL AGREE. JUST YOU KNOW
YOU WANT TO MAKE SURE TO GO TO
THE PUBLIC MONEY. MAYBE THERE'S
A WAY BECAUSE I DO AGREE A FIVE
MILLION DOLLARS NOT A LOT OF.
MONEY IN THE AND WE LOOK AT THE
ENTIRE STATE BUDGETS MAYBE SOME
THE STATE CAN DO THAT- POSSIBLY
REPAY LOAN OR SOMETHING TO HELP
OUT BUT- STILL. THEY'VE GOT TO
DO THEIR PART TO I MEAN. EMAIL
TO ME SO MAYBE THAT'S THAT'S A
POSSIBILITY MADAM CHAIR. AND I
JUST WANTED TO BE CLEAR THAT
THE ANNUAL APPROPRIATION THAT
WE'RE LOOKING AT WHO IS NOT
FIVE MILLION DOLLARS IN ITS ONE
POINT. ONE POINT ONE MILLION.
OKAY THANK YOU FOR THAT MISTER
BROWN IF THERE ARE NO
ADDITIONAL COMMENTS OR
QUESTIONS WE CAN MOVE ONTO THE
NEXT ISSUE. SEEN NONE WERE
GONNA MOVE ON TO ACTUALLY OUR
FINAL ISSUE OF THE DAY. THIS IS
RELATED TO THE CALIFORNIA
ALTERNATIVE ENERGY AND ADVANCED
TRANSPORTATION FINANCING
AUTHORITY. A SALES TAX
EXCLUSION AS OUR FINAL ISSUE
NUMBER FIFTEEN. WILL GO TO OUR
PANELISTS MR SURE ENOUGH. THANK
YOU MADAM CHAIR MEMBERS- THIS
IS DEREK SURE NOW WITH THE
CALIFORNIA ALTERNATIVE ENERGY
AND ADVANCED TRANSPORTATION
FINANCING AUTHORITY I BELIEVE
HE- DEPARTMENT FINANCE WILL
PRESENT THE GOVERNOR'S PROPOSAL.
HI JACOB GRANDPARENT OF FINANCE
SO THE CALIFORNIA ALTERNATIVE
ENERGY AND ADVANCED
TRANSPORTATION FINANCING
AUTHORITY OPERATES A NUMBER OF
FINANCIAL ASSISTANCE PROGRAMS
TO GREEN TECHNOLOGY FIRMS ONE
OF THESE AS A SALES TAX
EXEMPTION WHICH IS AWARDED
THROUGH AN APPLICATION PROCESS
AND IS INTENDED TO ASSIST
MANUFACTURERS. IN PURCHASING
CERTAIN EQUIPMENT FOR USE
ALTERNATIVE SOURCE ENERGY
PRODUCTION ADVANCED
MANUFACTURING AND ELECTRIC
VEHICLE MANUFACTURING THE
PURPOSE OF THE SALES TAX
EXEMPTION PROGRAM IS TO
ENCOURAGE GREEN TECHNOLOGY
INVESTMENTS TO TAKE PLACE IN
CALIFORNIA. SO OUR SALES TAX
EXEMPTIONS ARE AWARDED TO
APPLICANTS BASED ON A NET
BENEFIT TEST WHICH IS OUTLINED
IN THE PROGRAM'S REGULATIONS I
MEAN IT'S COURSE PERSPECTIVE
PROJECTS BASED ON A VARIETY OF
FACTORS INCLUDING THEIR
ESTIMATED STATE AND LOCAL
THAT'S GONNA FACT ENVIRONMENTAL
BENEFIT- AND ALSO THE
EMPLOYMENT RATE UNEMPLOYMENT
RATE IN THE UP PROJECTS.
PERSPECTIVE LOCATION SO THE
PROGRAM IS CURRENTLY CAPPED AT
A HUNDRED MILLION DOLLARS IN
TOTAL EXEMPTIONS AVAILABLE TO
BE AWARDED PER CALENDAR YEAR.
AS CAP HAS BEEN REACHED EVERY
YEAR SINCE TWO THOUSAND
FIFTEEN- AND THE PROGRAM IS
ALREADY OVER SCRIPT
OVERSUBSCRIBED FOR THE TWENTY
TWENTY ONE CALENDAR YEAR. SO
THE ADMINISTRATION PROPOSES A
HUNDRED MILLION DOLLAR ONE TIME
INCREASE TO THE CAP DOUBLING
THE AMOUNT AVAILABLE THIS YEAR
IN TWENTY TWENTY ONE. TO TWO
HUNDRED MILLION THEN IF ANY
AMOUNT OF THE EXTRA HUNDRED
MILLION IS LEFT ON ALLOCATED IN
THIS YEAR TWENTY TWENTY ONE
COULD BE ROLLED OVER AND
AVAILABLE. FOR ALLOCATION IN
TWENTY TWENTY TO- THIS.
PROPOSALS RECORD OF THE NEED
FOR FURTHER TAX RELIEF FOR
BUSINESSES DURING THE COPA
NINETEEN PANDEMIC. AND DABNEY
MINISTRATIONS RECOGNITION THAT
THERE'S A POTENTIAL
MAGNIFICATION EFFECT ADDITIONAL
AID FOR THESE INDUSTRIES MIGHT
HAVE IN THE CURRENT MOMENT
BUSINESSES ARE RECALIBRATING.
I'M IN MAKING YOUR LONG TERM
INVESTMENT PLANS PERHAPS
RECONSIDERING. THEIR INVESTMENT
LOCATION DECISIONS- EXACTLY TO
MY COMMENTS I'M HAPPY TO TAKE
ANY QUESTIONS. I'M ALSO THIS
DEREK HERE WHO MIGHT BE ABLE
THAT MORE SPECIFICALLY ANSWER
SOME OF THE ADMINISTRATION.
SIDE QUESTIONS. THANK YOU FOR
FROM THE LEGISLATIVE ANALYST'S
OFFICE PLEASE. YES THANK YOU
MADAM CHAIR GRANULAR WITH THE
LEGISLATIVE ANALYST'S OFFICE WE
JUST HAVE A COUPLE COMMENTS
FIRST ON THE COST OF THE
MEASURE WALL THE PROPOSAL WOULD
INCREASE THE ALLOCATION OF
EXEMPTIONS BY A HUNDRED
MILLION- WE WOULDN'T THAT THE
ACTUAL FISCAL COSTS QUITE A BIT
LESS THAN A HUNDRED MILLION FOR
A COUPLE REASONS- ONE IS
HISTORICALLY- ORTIZ AND NOT
USED ALL OF THE EXEMPTION
THAT'S BEEN GIVEN TO THE- AND
ALSO THAT. THERE IS SIGNIFICANT
OVERLAP BETWEEN THIS PROGRAM
AND ANOTHER- PROGRAM IN STATE
LAW WHICH IS A PARTIAL
EXEMPTION OF THE SALES TAX FOR
A QUICK PURPOSES FOR
MANUFACTURERS- AND FOR THOSE
TWO REASONS THE ACTUAL COST OF
THIS PROGRAM IS CLOSER TO
THIRTY EIGHT MILLION DOLLARS.
SPREAD OVER FIVE YEARS ONLY
ABOUT SIX MILLION OF THAT IS
ACTUAL GENERAL SPEED GENERAL
FUND COSTS OF THE REMAINING-
THIRTY TWO MILLION WOULD BE A
REDUCTION IN LOCAL SALES TAX
RETURNS. ARE ADDITIONALLY- IN
GENERAL WE WOULD SUGGEST THE
LEGISLATURE AND PROVIDING
BUSINESS ASSISTANCE AT THIS
POINT IN THE STATE'S ECONOMIC
RECOVERY- THAT THE ASSISTANT
SHOULD BE TARGETED AT
BUSINESSES AND SECTORS THAT
HAVE BEEN- MOST IMPACTED BY THE
CODEPENDENT MAKE AND ALSO THAT
THAT ASSISTANCE SHOULD BE
PROVIDED IN A TIMELY MANNER-
OVER CATTLE- WE DON'T FEEL THAT
THIS PROGRAM. IS WELL TARGETED
AT THE MOST IMPACT BUSINESSES
AND ALSO THE BENEFITS WOULD
OCCUR GRADUALLY OVER TIME I FOR
THOSE REASONS AS WELL AS THE
FACT THAT WE WOULD SUGGEST THE
LEGISLATURE. WE'LL DISCRETION
HOW TO ALLOCATE LOCAL SALES TAX
DOLLARS AS OPPOSED TO
REDIRECTING THEM FOR STATE
PURPOSES- WE RECOMMEND
REJECTING THE GOVERNOR'S
PROPOSAL. OKAY THANK YOU FOR
THAT ANY COMMENTS OR QUESTIONS
FROM THE COMMITTEE MISTER
LUCKY. YEAH I WOULD JUST SAY%
THAT THE COST OF NOT
IMPLEMENTING THIS PROCESS. IS
PRETTY HIGH BECAUSE WE HAVE
INDUSTRIES REPRESENTED HERE
THAT WILL BENEFIT FROM THIS.
THAT BRING IN A LOT OF INCOME
TO THE STATE IN REVENUES THAT-
DID MANAGE SEVERAL THESE
INDUSTRIES COULD MOVE OUTSIDE
OF STATE AND WE WOULD LOSE THE
BENEFIT OF WHAT THEY FOR THIS.
AND SO THAT NEEDS TO BE TAKEN
IN CONSIDERATION SO I HIGHLY
SUPPORT THIS. THANK YOU FOR
THAT ANY ADDITIONAL COMMENTS OR
QUESTIONS. SEEING NONE I DON'T
HAVE ANY ADDITIONAL COMMENTS OR
QUESTIONS BUT WILL A COLD
MISTER MISTER LACKEYS CONCERNS
AS WELL WE'LL BRING THIS ITEM
UP AGAIN IN CONJUNCTION WITH
THE FUTURE DISCUSSION ON
ECONOMIC RECOVERY FOR
BUSINESSES ACROSS CALIFORNIA
SO. MORE MORE TO COME ON A VERY
IMPORTANT TOPIC THANK YOU VERY
MUCH. THANK YOU TO ALL THAT
HAVE PARTICIPATED IN TODAY'S
OVERSIGHT HEARING WE'RE GOING
TO OPEN IT UP NOW TO PUBLIC
COMMENT THE NUMBER IS
877-692-8957 PUBLIC ACCESS CODE.
FOUR THREE SEVEN ONE THREE ONE
FIVE OPERATOR LET'S BEGIN WITH
PUBLIC COMMENT. AND MAYBE THE
GENTLEMEN IF YOU WISH TO COME
PRESS WONDER ZERO AGAIN IF YOU
TO COME. PRESS ONE AND THEN
ZERO. AT THE WE HAVE. AGAIN ONE
THEN ZERO FOR ANY COMMENT WE
HAVE ONE IN THE QUEUE WILL GO
TO LINE FOR PLEASE GO OUT.
THANK YOU VERY MUCH THIS IS
BAKER WITH THE CAL. RETIRED
TEACHER ASSOC COMMENTED RECORD
ISSUE ELEVEN. WHAT ARE THE CAL
STATE TEACHERS WE- SYSTEM WE
DIDN'T WANT TO KNOW THAT-
TWENTY TWENTY ONE BUDGET ACT
HAD INCLUDED A ONE YEAR FREE
RATE IN CONTRIBUTIONS. WE ARE
VERY APPRECIATIVE AND
SUPPORTIVE OF THE GOVERNOR'S
PROPOSED TWENTY TWENTY ONE
TWENTY TWO JANUARY BUDGET THAT
INCLUDES THE PAYMENT I WHICH
COVERS THE CURRENT STATUTORY
REQUIREMENT AND HELP FILL IN
THE GAP REGARDING LAST YEAR
WE'D LIKE TO THANK THE GOVERNOR
AND WE LIKE TO THINK THAT THE
LEGISLATURE PARTICULAR FOR YOUR
CAN MAKE CONTINUED. TOWARD
FULLY FUNDING CHARACTERS AND WE
LOOK TO CONTINUE. IN THE FUTURE.
THANK YOU FOR THAT ANY
ADDITIONAL. AT AS VERY MINE IF
YOU WISH O MAKE CALM PRESS ONE
THEN ZERO NOW A ONE THEN. IT
LOOKS LIKE WE DO HAVE ONE IN
THE QUEUE AT A B. TEST THE
MOMENT WHY WE GET THEM A NUMBER.
OKAY. AND MACBOOK PRO LINE
SEVENTEEN PLEASE GO AHEAD. GOOD
AFTERNOON AT CHECHNYA WITH THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES- THANK YOU FOR
ALLOWING US THE CHANCE TO
COMMENT AND SHARE- WE JUST WANT
TO. HIGHLIGHT THAT ALEJO'S
COMMENTS ON THE. EIGHT FIVE. X.
WERE HAPPY TO HAVE THE STATE
USED ITS OWN FUN TO- BENEFIT
THE COMPANIES AND CERTAIN THERE
HAVE A GOOD POLICY TO CONSIDER
DOING AT THE CURRENT. REALLY
USED NOT JUST LOCAL FONG AT
SOME OF THEM ARE ARE THE
GENERAL BUT OF THEM ARE
SPECIFICALLY FUND THE STATE HAS
PROMISED TO LOCAL TO COUNTIES
TO PERFORM BAKER HOPE SERVICES
TO FIND A COW WORKS OTHER SO
SERVE. TO PROVIDE SERVICE- AND
TO FIND COUNTY PRO TO AND SO
THE FROM WOULD TO TAKE MONEY
FOR THE PRO NOT JUST FOR LOCAL
TO FUND TO FUND WE WOULD
PROPOSE THAT THE STATE COULD
THAT BE AN ACTIVE SAME OF IN
BUT YOU IT'S FUNDS WHETHER IT'S
CARRILLO COURT. INCOME TAX
REBATES FOR THESE PARTS SO A
THINGS FROM THOSE AGAIN THANK
YOU FOR THAT AT TO COME. THANKS
FOR THE NEXTERA KA. AND AFTER
TIME THERE'S NO ELSE IN QUEUE
GREAT THANK YOU SO MUCH OPERATE
AND THANK FOR THE MEMBER OF THE
COMMITTEE. AFFIRMATIVE IN ALL
OF OUR PAY THE MEETING- SEPT.
ME IS. THAT WOULD BE A WELCOME
TO OUR- GOING.