CALL TO ORDER WE DON'T HAVE A
QUORUM BUT WE CAN START AS A
SUBCOMMITTEE WELCOME TO THE
SECOND BILL HEARING OF THE
ASSEMBLY BANKING AND FINANCE
COMMITTEE WHETHER YOU ARE HERE
IN PERSON WATCHING VIRTUALLY OR
ON THE PHONE LINES I AM
GRATEFUL TO YOU HAVE JOINED US
HERE ON THE CALIFORNIA STATE
ASSEMBLY CHAMBER FLOOR. I WILL
NOW GO OVER SOME KEY ELEMENTS
OF THE STRUCTURE OF TODAY'S
HEARING DUE TO THE ONGOING
PANDEMIC WE ARE PRACTICING
PHYSICAL DISTANCING AND THIS
HEARING AND THROUGHOUT THE
CAPITOL BUILDING. WE ARE ONLY
ABLE TO HAVE A LIMITED NUMBER
OF PEOPLE WATCH. AND
PARTICIPATE IN THE HEARING. IN
PERSON IN THIS SPACE WE CAN
ONLY ACCOMMODATE MEMBERS OF
THIS COMMITTEE AND THE AUTHORS
A MINIMAL CONTINGENT OF STAFF.
AND A LIMITED NUMBER OF THE
PUBLIC AND MEDIA SO WE CAN
MAINTAIN SIX FEET OF SPACING.
THEY'RE AWFUL STRICT PHYSICAL
DISTANCING PROTOCOLS FOR THE
PUBLIC TO ENTER AND LEAVE THE
CAPITAL. AND FOR THOSE HERE
TODAY IN THE HEARING. IF ANY
MEMBER OF THE PUBLIC IN THE
ROOM WOULD LIKE TO TESTIFY ON A
BILL PLEASE RAISE YOUR HAND.
AND I WILL ASK YOU TO APPROACH
THE MICROPHONE AT THE
APPROPRIATE TIME. YOU CAN EXIT
THE HEARING ONCE YOU FINISHED
TESTIFYING OR RETURN TO YOUR
SEAT. FOR EACH BILL WE WILL
ALLOW TWO PRIMARY WITNESSES IN
SUPPORT AND TWO PRIMARY
WITNESSES IN OPPOSITION.
WITNESSES MAY USE YOUR
MODERATOR TELEPHONE SERVICE. OR
WITNESS VIDEO CONFERENCING
ROOMS WHICH ARE LOCATED HERE IN
THE CAPITAL AND THE REMOTE
TESTIMONY STATION LOCATED ON
THE NORTH STEPS OF THE CAPITOL.
FOR THOSE USING THE MODERATED
TELEPHONE SERVICE THE CALL IN
NUMBER FOR THIS HEARING IS ONE
EIGHT SEVEN SEVEN. SIX NINE
TWO. EIGHT NINE FIVE SEVEN AND
THE ACCESS CODE IS TWO FOUR TWO
SIX TWO. THREE SEVEN. YOU CAN
ALSO FIND THIS NUMBER ON THE
ASSEMBLY BANKING COMMITTEE
WEBSITE AS WELL AS YOUR TV OR
MONITOR SCREEN. IF YOU'RE
CALLING IN PLEASE PLAN TO DO SO
AS THE AUTHOR OF THE BILL YOUR
TESTIFYING ON IS BEGINNING
THEIR BILL PRESENTATION. THE
OPERATOR ON THE LINE WILL GIVE
YOU INSTRUCTIONS ON HOW TO BE
PLACED IN QUEUE. BASED ON
WHETHER YOU SUPPORT OR OPPOSE A
BILL. IF YOU WERE CALLING IN
PLEASE ELIMINATE ALL BACKGROUND
NOISE. THIS INCLUDES MUTING
YOUR LIVE STREAM BROADCAST
ANDRESS SMART DEVICES TO REDUCE
THE SOUND DISTORTION. PLEASE
ALSO BE ADVISED. THAT IF YOU'RE
A PRIMARY WITH PROVIDE
TESTIMONY FOR OR AGAINST A
BILL. YOU REMAIN ON A LIFELINE
AND WILL NEED TO MUTE YOURSELF
UNTIL YOU ARE CALLED ON TO
SPEAK. IF YOU ARE HAVING ANY
PROBLEMS WITH THE MODERATOR
PHONE SERVICE YOU CAN CALL THE
COMMITTEE AT NINE ONE SIX THREE
ONE NINE. THREE ZERO EIGHT ONE
AND MY STAFF WILL BE THERE TO
TRY TO HELP. AFTER WE HEAR FROM
THE PRIMARY WITNESSES
ADDITIONAL SPEAKERS CAN EXPRESS
SUPPORT OR OPPOSITION OF A BILL
THROUGH THE MODERATED TELEPHONE
SERVICE OR THE REMOTE TESTIMONY
STATION LOCATED ON THE NORTH
STEPS OF THE CAPITOL. PLEASE
LIMIT YOUR COMMENTS TO YOUR
NAME ORGANIZATION AND WHETHER
YOU SUPPORT OR OPPOSE THE BILL.
I ALSO WANT TO NOTE THAT WE ARE
ACCEPTING WRITTEN TESTIMONY
THROUGH THE OUTLET THROUGH THE
POSITION LETTER PORTAL ON THE
COMMITTEE'S WEBSITE. AND ONE
LAST POINT THIS YEAR PROTESTERS
HAVE APPEARED AT LEGISLATIVE
HEARINGS REMOVING THEIR MASKS
YELLING FROM THE AUDIENCE AND
ISSUING VEILED THREATS ABOUT
POTENTIAL GUN VIOLENCE. IN
ORDER TO FACILITATE THE GOAL OF
HEARING AS MUCH FROM THE PUBLIC
WITHIN THE LIMITS OF OUR TIME.
WE WILL NOT PERMIT CONDUCT THAT
DISRUPTS DISTURBS OR OTHERWISE
IMPEDES THE ORDERLY CONDUCT OF
LEGISLATIVE PROCEEDINGS. WE
WILL NOT ACCEPT DISRUPTIVE
BEHAVIOR OR BEHAVIOR THAT
INCITES OR THREATENS VIOLENCE
EVEN VEILED THREATS. WE APPLY
THESE RULES TO ALL PEOPLE WHO
PARTICIPATE IN OUR PROCEEDINGS.
THANK YOU FOR BEARING WITH US
AS WE IMPLEMENT METHODS TO
CONTINUE. TO SERVE THE PEOPLE
OF CALIFORNIA WHILE ALSO BEING
MINDFUL AND RESPECTFUL OF THE
PUBLIC HEALTH CONCERNS WE ALL
FACE. MEMBERS IF YOU WOULD LIKE
TO RESPOND TO ROLL CALL TO A
ROLL CALL ASK A QUESTION OR
PROVIDE A COMMENT YOU WILL NEED
TO RAISE YOUR MICROPHONE SO
STAFF CAN ACTIVATED. WHEN. WHEN
YOU ARE RECOGNIZED TO SPEAK.
AND DIE SEE SOME. I SEE THAT WE
STILL DO NOT HAVE ENOUGH A- SO
WE WILL BE AS A COMMITTEE I
NEED TO PRESENT A BILL ON
HOUSING COMMITTEE SO MY ADVICE
WILL BE PRESIDING FOR THE FIRST
FEW BILL PRESENTATIONS MR CHEN
THANK YOU VERY MUCH. THANK YOU
MISTER CHAIR- TODAY WITH AT THE
BEGINNING OF AB THIRTEEN
NINETEEN ASSEMBLY MEMBER AT
YOUR PLEASURE. CAN MEMBERS
ASSEMBLY BILL THIRTEEN NINETEEN
I'LL CREATE A VOLUNTARY
MEMBERSHIP ORGANIZATION OF
WORKER COOPERATIVES CALLED THE
FEDERATION THE FEDERATION WOULD
PROVIDE TECHNICAL ASSISTANCE
ADMINISTRATIVE SUPPORT OVERSEE
COMPLIANCE WITH DEMOCRATIC
GOVERNANCE STANDARDS FOR WORKER
CO OPS. WORKER CO OP IS A GOOD
WAY FOR- WORKERS TO COME
TOGETHER GOVERN OWN THEIR OWN
BUSINESS HOWEVER IT'S VERY
COMPLICATED AND IT REALLY HAS
SEEN- A NUMBER OF FOLKS TRYING
TO DO THIS AND NOT DO IT
BECAUSE THE NUMBER OF BARRIERS
IT AND- FIGURING THIS PART OUT.
WHAT WE'RE TRYING TO O IS SET
UP A STRUCTURE WHEREBY IT
BECOMES EASIER TO ADMINISTER
FOR THE WORKER COOPS COMPLETELY
VOLUNTARY. I IT'S A PUBLIC
PRIVATE PARTNERSHIP BUT IT THE
COPS THEMSELVES NOBODY BE
FORCED INTO A CO OP IN A COOP
WOULD BE FORCED INTO THE
FEDERATION. THIS IS ONE STEP
ARE WERE EXPLORING ONE STEP AS
WE MOVE THROUGH THE PROCESS
HOPEFULLY- TO SCALE THE WORKER
COOPER ATION MODEL IN
CALIFORNIA TO HELP MOVE THE
STATE TOWARDS AN INCLUSIVE AND
RESILIENT ECONOMY BY CENTERING
ON WORKER OWNERSHIP IN
INVESTING AND LOCAL
COMMUNITIES. WITH ME ON THE
PHONE I HAVE MATT LEADS WITH
SEIU. THE SPONSORS OF THE BILL.
ONE REPRESENTS DANGER WEBER IS
NOT. HELLO THANK YOU CHAIR
MEMBERS NOT WAS ON THE AT THE
YOU CAL YOUR TODAY'S SPONSOR OF
THE. THIRTEEN NINETY FIVE ONE
FIVE CALIFORNIANS OF LOS THEIR
JOBS DURING THE PANDEMIC AND
TEN Q. RESEARCH CENTER STUDY
FOR THAT HALF THE BUILDING THE
U. S. RELAY OFF TO THE- STILL
ROOM ON. WOMEN KEEP OF COLOR
AND PEOPLE KNOWING JOB AND THEN
IT THE HARD BY THE ECONOMIC
IMPACT OF ENDEMIC THE PANDEMIC
HAS EXAM QUAL SAID BEFORE THE
PEN AND AS CAL RECALL YOU MAY
CREATE STOPPED FOR OUR- BRACCO
LOWER COPPER. IN RESPONSE TO
THE REALITIES THAT WORKER ARE
FACING WORKERS COOPER OFFER
WORKERS CENTER MOD OFFERS BOTH
THE LONG TERM ARRAY FOR WORK IN
THE THEIR ACT OR- WORKER CO OPS
ALLOW WORKER TO BAND TOGETHER
AND DON'T UNDER DEMOCRATIC
PRINCIPLES TO SHARE IN THE
PROFITS. OF THEIR LABOR. ALL
THE WORK COSTS APPROVAL MODELS
FAR AS ASSEMBLY. AT LUCY TO.
HAVE FAILED TO SEE. SCALE
BECAUSE OF THE- TECHNICAL.
RELATE TO FORM- CALL THIS AS
GREAT BY LAW READ AS CORPORATE.
AND-ESTABLISHING GOVERNANCE.
AB THIRTY NINETEEN OF THEM STEP
TO HELP IN A- IN SPUR ON. BY
ESTABLISHING A BETTER. THAT
WOULD PROVIDE TECH SUPPORT TO
NEW AND EXISTING COLLAPSED. THE
CREATION OF THE FEDERATION IS
AN IMPORTANT FIRST STEP TO
SCALING UP THE WORKER CAUGHT
MODEL IN CALIFORNIA IN HELPING
MORE CALIFORNIA'S GET BACK INTO
THE WORKFORCE AND HIGH QUALITY.
FAMILY SUPPORTING JOBS. HOW
WORKERS BEEN HIT BY THE- AND IF
CAL GO TO BE REBUILD WITH BACK
COPPERY WE MUST ENSURE WORKERS
HAVE WHAT'S ON PLACE THIS. THE
BATTERY WORK WILL PROVIDE THE
NECESSARY TECHNICAL SUPPORT TO
ENABLE WORKERS TO BAND
TOGETHER. FOR THESE REASONS AS
HERE YOU CALIFORNIA IS PROUD TO
SPONSOR EIGHTY THIRTEEN
NINETEEN M. RESPECTFULLY
REQUEST YOUR I THOUGHT THANK
YOU. THANK YOU MISS ME J. WE DO
NOT HAVE ANY PRIMARILY NOT THE-
SO WE'LL BE MOVING ON TO PULL
THE COMMENT ARE THERE ANYWAY
THIS IS A- ABOUT TO CHAMBER FOR
IN THE GALLERY PLEASE STAY YOUR
NAME. FOR AND POSITION. SEEING
NONE ARE THERE WHEN THIS IS NOT.
BY A CHAMBER AND GALLERY.
SEEING NONE ARE THERE WHAT IS
IN SUPPORT THEIR MOTIVES STATE.
WHEN THIS IS NOT AND REMOTE TO.
MODERATOR OTHER ANYONE IN
SUPPORT AND OPPOSITION ON THE
PHONE OR THE Q. THANK YOU
MISTER CHAIR AND LADIES AND
GENTLEMEN IF YOU WISH TO SPEAK
IN SUPPORT OR OPPOSITION OF AB
THIRTEEN NINETEEN YOU MAY PRESS
ONE AND THEN ZERO AT THIS TIME.
NINE SEVENTY TWO YOUR LINE IS
OPEN PLEASE GO AHEAD. I AM
WAITING FOR ANOTHER BILL I'M
SORRY. MARIN NEXT- INDIVIDUAL
PLEASE. ONE ONE NINE SIXTY FIVE
YOUR LINE IS OPEN PLEASE GO
AHEAD. GOOD AFTERNOON JUSTIN
RATHER ON BEHALF OF WORKER
OWNED RECOVERY CALIFORNIA IN
SUPPORT OF AB THIRTEEN NINETEEN
THANK YOU. NINE SEVENTY SEVEN
YOUR LINE IS OPEN PLEASE GO
AHEAD. HOLD GOOD AFTERNOON MY
NAME IS NANCY ARCHER I LIVE IN
MARIN VALLEY CALIFORNIA I'M A
MEMBER OF THE RESIDENTS UNITED
NETWORK ENERGY TO SUPPORT AB.
SEVENTY ONE. WE HAVE NO FURTHER
COMMENT IN THE OPPOSITION AND
SUPPORT YOU. THE MEMBERS ANY
QUESTIONS OR COMMENTS. WITHOUT
SOMEONE OR WOULD LIKE TO CLOSE
THANK YOU THIS IS A WORK IN
PROGRESS THAT WE'RE JUST TRYING
TO SEEK WAYS IN WHICH-
INDIVIDUALS COULD LOOK AT A NEW
WAY OF FORMING WORKER
COOPERATIVES I RESPECTFULLY ASK
FOR NINE ABOUT. THANK YOU MUCH
THE MOTION BEFORE IS TO PASS
THE SUMMIT FOR. COMMITTEE
SECTOR CALL THE ROLL. I SEE
THAT WERE SOLD SUBCOMMITTEE- WE
WERE ONE SHORT FROM A QUORUM-
WILL COME BACK ONCE WE GET
QUORUM THANK YOU VERY MUCH.
NEXT FILE ITEM IS AB FIVE
ELEVEN. SOME OF THE REMEMBER-
PLEASE ADD YOUR- THANK YOU VERY
MUCH MISSED BY CHAIR MEMBERS OF
THIS COMMITTEE I AM PRESENTING
AB FIVE ONE ONE. WHICH IS THE
CALIFORNIA SMALL BUSINESS
EQUITY CROWDFUNDING ACT. AB
FIVE ONE ONE FIVE ONE ONE WOULD
ALLOW STARTUP SMALL BUSINESSES
TO FIND INVESTORS WHO CAN
PROVIDE CAPITAL TO HELP THEM
GROW AND CREATE JOBS ASSEMBLY
MEMBER APOLOGIZE WE'RE GONNA DO
A QUICK PAUSE AS WE HAVE FORM.
HAVE A ROLL CALL RIGHT NOW.
UNDER SECRETARY PLEASE CALL THE
ROLL. GRAYSON CHEN HERE. THERE
CAN BURKE. CERVANTES CHOI. GAME
ROOM. CRISTINA GARCIA. JANET
NGUYEN. PETRIE-NORRIS STONE.
WICKS. THANK YOU VERY MUCH SORT
OF INTERRUPTION AS A MEMBER AT
YOUR PLEASURE THANK YOU. AB
FIVE ON ONE WOULD ALLOW SMALL
START UP SMALL BUSINESSES TO
FIND INVESTORS WHO CAN PROVIDE
CAPITAL TO HELP THEM GROW AND
CREATE JOBS. WHILE AT THE SAME
TIME PROVIDING GREATER.
PROTECTIONS TO CALIFORNIA
INVESTORS PARTICIPATING IN
EQUITY CROWDFUNDING. I THINK
WE'VE ALL HEARD BEFORE THAT
SMALL BUSINESSES ACCOUNT FOR
OVER TWO THIRDS OF ALL NEW JOBS.
BUT THEY OFTEN LACK LACK ACCESS
TO CAPITAL AND RELY HEAVILY ON
FRIENDS AND FAMILY CREDIT CARD
DEBT. HOME EQUITY AND OTHER
LIMITED PERSONAL ASSETS FOR
FINANCING. IN TWENTY TWELVE TO
ADDRESS THIS CAPITAL GAP. AND
HELP SUPPORT THE START OF SMALL
BUSINESSES PRESIDENT OBAMA
SIGNED AND APPROVED THE JOBS
ACT IN EQUITY CROWDFUNDING
BECAME A REALITY UNDER THE ACT.
HOWEVER THE JOBS ACT HAS BEEN
CRITICIZED AS BEING UNDULY
BURDENSOME. ON MANY OF THESE
START UPS WHILE ALSO LACKING AN
INVESTOR PROTECTIONS. THIS BILL
WOULD CODIFY AN INTEREST STATE
CROWDFUNDING EXEMPTION WHICH
INCREASES THE AMOUNT THAT CAN
BE RAISED THROUGH AN EQUITY
CROWDFUNDING OFFERING WITHOUT A
CPA REVIEW FROM A
1-001-000-2300 THOUSAND. WHILE
AT THE SAME TIME PROVIDING
GREATER INVESTOR PROTECTIONS
THAT IS ABSENT FROM THE JOBS
ACT SUCH AS ATTORNEYS FEES FOR
PREVAILING INVESTORS.
PROHIBITING CLASS ACTION
WAIVERS AND PROHIBITING JURY
TRIAL WAIVERS. NOW I HAVE TO
SAY THAT YOU KNOW IF YOU LOOK
AT THE LIST OF THIS A- THE
SUPPORTERS OF THIS BILL. THEY
INCLUDE NOT ONLY THE SPOT THE
SPONSOR THE SMALL BUSINESS
CALIFORNIA. BUT ALSO THE
CALIFORNIA CHAMBER OF COMMERCE
THE NATIONAL FEDERATION OF
INDEPENDENT BUSINESSES AS WELL
AS THE PLAINTIFFS BAR
REPRESENTED TODAY AS ONE OF MY
SUPPORTING WITNESSES BY THE
PUBLIC INVESTORS ADVOCATE. BAR
ASSOCIATION. I WITH THAT I'D
LIKE TO TURN IT OVER TO- MARK
YOU'RE RIDING REPRESENTING THE
SMALL BUSINESS CALIFORNIA. AS
WELL AS SCOTT BURNS TEAM
REPRESENTING A P. ABA THE
PUBLIC INVESTORS BAR
ASSOCIATION. MY RETURN BY SHARE
CHEN. AND DISTINGUISH MEMBERS
OF THE COMMITTEE THIS IS MARKY
RIGHTY BILLS WELL REPRESENTING
BILL SPONSORED TO CAL. ASSEMBLY
MEMBER MARC TO CHOOSE MENTIONED
IN TWENTY TWELVE CONGRESS IT
ENACTED THE JUMPSTART OUR
BUSINESS STARTUPS ACT.
RECOGNIZED THE IMPORTANCE OF
MODERNIZING AND LIBERALIZING
FEDERAL SECURITIES REGULATIONS
FOR RAISING EARLY STAGE CAPITAL.
OBVIOUSLY SECURITIES LAW
RESTRICTIONS LIMITED MONTH
ABILITY TO RAISE CAPITAL FROM
INVESTORS OUTSIDE OF FRIENDS
AND FAMILY. SO THOSE WHOSE
FAMILIES WERE UNABLE TO AFFORD
TO INVEST IN RISKY C. CAPITAL
CORP TECHNICALLY DENIED ACCESS
TO SEED CAPITAL THAT IS
ESSENTIAL TO VALIDATE A
BUSINESS MORE OBTAIN FIRST
CONTRACT. SO THAT BUSINESS CAN
BECOME MORE ATTRACTIVE TO
FOREIGN INVESTMENT. THE SEC AND
PROMULGATING THE RULES UNDER
THE JOB ACT SPECIFICALLY
CONTEMPLATED THAT EACH STATE
PUT A DOCTOR RULE. APPROPRIATE
TO CERTAIN STATE. THIRTY FOUR
STATE AND TO JUST OF COLUMBIA
HAVE ALREADY ENACTED EQUITY
COME CRITICS. AB FIVE ELEVEN
TAKEN PRO TOOK CAL SECURE LAW
TO ALLOW FOR EFFECTIVELY
RAISING THE THOUSAND DOLLAR
FEDERAL SEAT LIMIT- YOU I'M
MORE APPROPRIATE LIMIT OF
HUNDRED PER. WITH ADDITIONAL
PROTECTION THE BEST PROTECTION
AND PROUD TO SAY THAT WE HAVE
WORKED HARD IN CLOSELY. WITH
THE PRIVATE INVESTIGATOR
ARBITER BARS. HE ABA IN CRAFT.
INVESTORS IN THE STATE. WERE WE
RESPECTFULLY REQUEST NINE ON
EIGHTY FIVE THANK YOU. OKAY
THANKS. MISTER BURNS DINNER IS
ON THE LINE I BELIEVE- PLEASE
AT YOUR PLEASURE.
SURE I CAN
SEE WHAT'S GOING ON UP THERE
BUT SOMEONE WORKING ON THAT IT
MEYER- NOW IT WILL OKAY WILL
ALSO IT AGAIN- THE OPERA
INVESTORS ADVOCATE BARS. P. ABA
IS IN SUPPORT OF THIS BILL WE
BELIEVE THAT IT REPRESENTS A
RESPONSIBLE WAY TO FACILITATE
SMALL BUSINESS CAPITAL
FORMATION. BY MAKING CALIFORNIA
A GOOD PLACE FOR A START UP
BUSINESS CONCEPT IN A BAD PLACE
IN WHICH TO COMMIT SECURITIES
FRAUD. IT REALLY IS THAT SIMPLE
IT MAKES IT A SAFER PLACE FOR
INVESTORS BECAUSE- THERE IS A
COST. TO CHEATING INVESTORS OUT
OF AMOUNTS OF MONEY THAT MAY BE
TOO SMALL TO MERIT NORMAL
SECURITIES LITIGATION IN THE
IDEAL WORLD. NOT ONE PENNY. OF
ATTORNEYS FEES WILL BE PAID AS
A RESULT OF THIS OF THIS CHANGE
IN THE- CORPORATIONS CODE
INSTEAD. THE BAD GUYS WILL STAY
AWAY. AND SO THAT IS AND I'M
HAPPY TO ANSWER ANY QUESTIONS-
BUT- THAT'S THAT'S OUR VIEW IN
A NUTSHELL. THANK YOU VERY MUCH
MR GRINSTEIN WE DO NOT HAVE ANY
PRIMER WINCES IN OPPOSITION SO
WE'LL BE MOVING ON TO PUBLIC
COMMENT. OTHER ANYONE IS AS
IMPORTANT A FACTOR CHAMBER. A
PLEASE JUST TAKE YOUR NAME.
FILIATION AND POSITION ONLY.
YES GOOD AFTERNOON THANK YOU
CHURCH AND LORI KAMMER ON
BEHALF OF NATIONAL ASSOCIATION
OF WOMEN BUSINESS OWNERS
CALIFORNIA CHAPTER ALSO- IN
SUPPORT OF THE BILL- AND ALSO
WITH SMALL BUSINESS CALIFORNIA
THANK YOU THANK YOU. ARE THERE
ANY WITNESSES IN SUPPORT OF THE
REMOTE TESTIMONY STATIONS
MODERATOR. THANK YOU MISTER
CHAIR AND LADIES AND GENTLEMEN
IF YOU WISH TO SPEAK IN SUPPORT
OF AB FIVE ELEVEN YOU MAY PRESS
ONE AND THEN ZERO AT THE TIME.
NINE SEVENTY NINE YOUR LINE IS
OPEN. PLEASE GO AHEAD. THANK
CALLED YOU. I WHAT. RIGHT. BUT
OF COURSE THE BABY'S. ONE THANK
YOU. THANK YOU. ONE MOMENT
WHILE WE GATHER LINE NUMBER. MY
EIGHTY YOUR LINE IS OPEN PLEASE
GO AHEAD. I COULD AFTERNOON-
THIS IS DAVID NELSON DIRECTOR
CALLS FOR THE CALIFORNIA ASIAN
PACIFIC CHAMBER OF COMMERCE
CALLING AND WILL SUPPORT OF AB
FIVE ELEVEN THANK YOU VERY MUCH.
WE HAVE NO FURTHER COMMENT IN
THE SUPPORT QUEUE FOR EIGHTY
FIVE ELEVEN. THANK YOU
MODERATOR ARE THERE ANY
WITNESSES IN OPPOSITION. AND
LADIES AND GENTLEMEN IF YOU
WISH TO SPEAK IN OPPOSITION OF
AB FIVE ELEVEN YOU MAY PRESS
ONE AND THEN ZERO AT THIS TIME.
WE HAVE NO COMMENT ON THE
OPPOSITION TO. THE MORMONS IS
IN SUPPORT OPPOSITION OF PHONE
OR IN THE QUEUE A MODERATOR. WE
HAVE NO FURTHER. SUPPORT OR
OPPOSITION THANK YOU- THANK YOU
THANK YOU VERY MUCH COMMITTEE
MEMBERS WE HAVE ANY QUESTIONS.
AT THE SCENE ON- SOMEONE OR
WOULD YOU LIKE TO CLOSE THANK
YOU VERY MUCH I OF WOULD NOT
ONLY ASK FOR RESPECTFULLY ASK
FOR AYE VOTE BUT I WOULD INVITE
ANY CO AUTHORS. FOR THIS RARE
OPPORTUNITY FOR A CALCHAMBER
NFIB BILL THAT- ALSO- ALLOWS
FOR ATTORNEY FEES AND PROHIBITS
A JURY WAIVERS. I WOULD
APPRECIATE YOUR SUPPORT. THANK
YOU IMAGES OF A- OF WITH WE DO
A MOST FROM US IN REGARD. WE
HAVE A SECOND- ASSEMBLY- NUMBER
TWENTY PAIRS OF A SECOND
WITHOUT MEDITECH PLEASE CALL
THE ROLL. GRAYSON CHEN HI
CHAMPHAI BEAR CAN AMERICAN I
BURKE BURKE I CHOI. CHOI HI SO.
GABRIEL CRISTINA GARCIA
CRISTINA GARCIA HI JANET NGUYEN.
PETRIE-NORRIS PETRIE-NORRIS.
PETRIE-NORRIS I STONE STONE AYE
WICKS. THE BILL HAS SEVEN BUCKS
THE BILL HAS SEVEN VOTES AND
THE BILL IS OUT AND WE WILL BE
THE CALL CONSTRUCTION MEMBERS
THANK YOU DON'T REMEMBER. THE
NEXT BILL ON FOLLOWS AB ONE
SEVENTEEN WHICH IS A TO PASS AS
AMENDED REGULATION FROM
SOMEWHERE IT. ADAN WHEN YOU'RE
READY- AT YOUR PLEASURE. THE
THREE YEAR THE MOTION. LET'S GO
AND CALL THE ROLL FOR THE FOR
BILL ON SECRETARY. THANK YOU.
GREAT CHEN NOT IN CHEN ABOUT.
BAROKA BERWICK CAN I BURKE
BURKE I CHOI. YES TWENTY NO.
CERVANTES GAVER. CRISTINA
GARCIA IN A GARCIA I. CAN IT
WHEN. PRESS. ONE THIRTY
NINETEEN. CAN'T WHEN UPLOADING
PETRIE-NORRIS KITCHENER'S.
STONE DON'T HI WICKS. THE BILL
HAS FIVE VOTES. THANK YOU- WE
WILL BE THE CALL OPEN FOR
ABSENT MEMBERS- WITHOUT A
SINGLE DONNELLY YOUR PLEASURE.
A GOOD AFTERNOON MISTER CHAIR
AND COMMITTEE MEMBERS I WOULD
LIKE TO START BY ACCEPTING THE
AMENDMENTS IDENTIFIED IN THE
ANALYSIS AND THANKING THE
COMMITTEE STAFF FOR THEIR WORK
ON THIS BILL THANK YOU. I AM
PLEASED TO PRESENT AB ELEVEN
SEVENTY TWO WHICH WILL RIDE
LICENSE ESCROW AGENTS AND
ALTERNATIVE. TO NEW NATIONAL
COUNTY SANDERS THAT THREATEN TO
PUT. MANY INDEPENDENT ESCROW
AGENTS OUT OF BUSINESS. IN
TWENTY SIXTEEN THE FINANCIAL
ACCOUNTING STANDARDS BOARD
ADOPTED REVISED GUIDELINES TO
THEIR LEASE ACCOUNTING
STANDARDS. THESE STANDARDS
PROPOSED TO REQUIRE PUBLIC AND
PRIVATE COMPANIES TO SET. X.
TWELVE MONTHS WITHOUT BEING
ABLE TO USE THOSE FUNDS TO
ACTUALLY MAKE PAYMENTS ON THOSE
LEASES. MANY INDEPENDENT ESCROW
COMPANIES SUBJECT TO THE
STANDARD WOULD BE UNABLE TO
OBTAIN THE CAPITAL NECESSARY TO
COVER ALL THESE LIABILITIES.
INDEPENDENT ESCROW COMPANIES
ARE ALREADY REQUIRED TO
MAINTAIN A MINIMUM NET
OPERATING INCOME. COMPLETE
ANNUAL AUDITS BY INDEPENDENT
AUDITORS AND MAINTAIN SURELY
AND FIDELITY BONDS. THE
ADDITIONAL ACCOUNTING STANDARDS
ATTEMPT TO SOLVE A PROBLEM THAT
DOES NOT EXIST FOR CALIFORNIA'S
INDEPENDENT SCROW AGENTS AND
THREATENS TO PUT MANY OUT OF
BUSINESS IN THE PROCESS. AB
ELEVEN SEVEN TWO WILL PROVIDE
THESE ESCROW COMPANIES A MORE
AFFORDABLE ALTERNATIVE AUDIT
PROCESS THAT WILL SATISFY THE
INTENT OF THE ACCOUNTING
STANDARDS WITHOUT THE
SIGNIFICANT. FISCAL IMPACT AND
TESTIFYING BY PHONE TODAY
MISTER CHAIRS WRONG KINGSTON ON
BEHALF OF THE ESCROW INSTITUTE
OF CALIFORNIA. THE MODERATOR
PLEASE CONNECTED WITH MR ON
KINGSTON FROM THIS GREAT STATE
OF CALIFORNIA. HI- THIS IS
BRIAN KINGSTON. ON SHARE THE
AND COMMITTEE I. ROUGH THE F.
IN USING. DESPITE OF MR ODO
STILL. AND IF. IS COME OF
MEMBERS THAT ARE PRIME WE NO
HAN OPERATED- COME THEY'RE
BUILT SMALL- COME IN THE ARE.
THE DEPARTMENT OF FINANCE AND
IN A- HAVE LIKE MANY OTHER
STATES. ARE LIKE MANY OTHERS
THE DOCTORS- DANJEL CONSUMER
PER. AND THOSE PROTECT HAVE
WERE OUT BY MR OF PHOTO-
ACCOUNTING AND MORE CAN
ACCOUNTABILITY HISTORY. OF OUR
REGULAR. WHICH EVERY ASK COME
AND- BEING HERE. EX IN CONCERT.%
FOR ARE- IS- DONALD HOW- ALL
THE L. OF THE- WE ARE CAN TO
WORKING THE COMMITTEE STAFF AND-
AS THE HAS BEEN THE CASE OF THE
PAST COUPLE WE- AND ADMIN. TO
FOR OUT PERFECT FULLER I MEAN
TO ANSWER OF THE COMMITTEE
THANK YOU. THANK YOU WE DO NOT
HAVE ANY WITHAN OPPOSITE SO WE
WILL MOVING ON TO PUBLIC
COMMENT ARE THERE ANYWAY. IN
SOME IN THE CHAMBER OF. C. NONE
ARE THERE A WITNESSES IN. AT
THE REMOTE TESTING. STATIONS
MODERATOR. THANK YOU MISTER
CHAIR AND LADIES AND GENTLEMEN
IF YOU WISH TO SPEAK IN SUPPORT
OF AB ELEVEN SEVENTY TWO YOU
MAY PRESS ONE AND THEN ZERO AT
THIS TIME. ONE MOMENT PLEASE.
NINE EIGHTY NINE YOUR LINE IS
OPEN PLEASE GO AHEAD. MR
CHAIRMAN MEMBERS MIKE BELOW ON
BEHALF THE CALIFORNIA ESCROW
ASSOCIATION IN FULL SUPPORT OF
THE BILL THANK YOU. WE HAVE NO
FURTHER COMMENTS IN SUPPORT OF
AB ELEVEN SEVENTY TWO. THANK
YOU MODERATOR ARE THERE ANYONE
IS IN OPPOSITION ON THE PHONE
OR IN THE QUEUE. AND LADIES AND
GENTLEMEN IF YOU WISH TO SPEAK
IN OPPOSITION OF AB ELEVEN
SEVENTY TWO YOU MAY PRESS ONE
AND THEN ZERO AT THIS TIME. WE
HAVE NO COMMENT IN THE QUEUE AT
THIS TIME. COMMANDERS WE HAVE
ANY QUESTIONS. SEEING NONE WE
THERE IS A MOTION IS OUR SECOND
SECOND BY. USER QUESTION. OKAY
SO ON A SECOND BY SUMMER-
RECORDAR CON- AUTHOR WOULD LIKE
TO CLOSE I ASKED AN AYE VOTE
THANK YOU VERY MUCH MATTER
OCCUR PLEASE CALL THE- GRAYSON.
CHEN CHEN HI WHERE CAN CAN I
BURKE BURKE I CHOI CHOI I
CERVANTES. GABRIEL CRISTINA
GARCIA IN GARCIA I. GEN WHEN I
EIGHTEEN HOURS PETRIE-NORRIS
AYE STONE. STONE HI WICKS THE
BILL HAS EIGHT MONTHS. SB
VOTES- AND WE'VE ON CALL FOR
ABSENT MEMBERS THANK YOU SO THE
RUNDOWN OF. THE NEXT BILL IN.
FULL ORDER IS A SEVEN FOUR. I
DON'T MORE FORCE SOMEONE SHARON
SILVA YOUR PLEASURE. GOOD
AFTERNOON MR CHAIRMAN MEMBERS
OF THE COMMITTEE I'M HERE TO
PRESENT AB EIGHT SEVEN FOR MY
PACE FORECLOSURE PREVENTION
BILL. THE PROPERTY ASSESSED
CLEAN ENERGY OR PACE PROGRAM A
PROVIDES A FORUM FINANCING
HOMEOWNERS MAY USED TO FINANCE
CLEAN ENERGY IMPROVEMENTS TO
THEIR HOMES. AND TWENTY
THIRTEEN SENATE BILL NINETY SIX
DIRECTED THE STATE TO ALLOCATE
TEN MILLION DOLLARS TO CREATE A
RISK MITIGATION PROGRAM FOR
RESIDENTIAL PACE FINANCING. THE
CALIFORNIA ALTERNATIVE ENERGY
AND ADVANCED TRANSPORTATION
TRANSPORTATION FINANCING
AUTHORITY CREATED THE PACE LOSS
RESERVE FUND TO PROTECT AGAINST
THE RISK OF DEFAULT IN FOR
CLOSURE BY MITIGATING POTENTIAL
LOSSES ASSOCIATED WITH PACE'S
FIRST PRIORITY LIEN STRUCTURE.
TO DATE THE FUND HAS RECEIVED
NO CLAIMS YET MANY. LOW AND
MODERATE INCOME HOMEOWNERS WITH
PACE ASSESSMENTS ARE STRUGGLING
TO PAY THEIR INCREASED ESCROWED
PROPERTY TAX PAYMENTS
ADDITIONALLY BECAUSE ONLY FIRST
MORTGAGE LENDERS ARE ALLOWED TO
FILE COMPENSATION CLAIMS FOR
LOSSES INCURRED AFTER
FORECLOSURE THE FUND IS NOT
CURRENTLY BEING USED TO RESENT
AVOIDABLE. FORECLOSURES THE
FUND IS ALSO CURRENTLY NOT
PREVENTING FORECLOSURES OR
ALLEVIATING THE CONCERNS OF
FEDERAL AGENCIES REGARDING PACE
LIENS JUMPING AHEAD OF EXISTING
MORTGAGES CONSEQUENCE SLEEP
CONSEQUENCE LATELY THESE
AGENCIES ARE YET TO APPROVE
FINANCING ON PROPERTIES WITH
PACE ASSESSMENTS AND NEITHER
THE HOMEOWNERS IN OUR LENDERS
CAN BENEFIT FROM THE CURRENT
SYSTEM. UNDERSTANDING THAT
THERE COULD BE POTENTIALLY MANY
HOMEOWNERS WITH PACE
ASSESSMENTS THAT MAY BE ON THE
BRINK OF FORECLOSURE I HAVE
DECIDED TO INTRODUCE AB EIGHT
SEVEN FOUR WHICH WILL HELP
CALIFORNIANS AVOID FORECLOSURE
IN RESPONSE TO KOVA DRIVEN
RECESSION. BY EXPANDING ACCESS
TO THE CONSISTING TEN MILLION
DOLLAR PESO LOSS RESERVE FUND
HERE TO SPEAK WITH THE ABOUT
THE IMPORTANCE OF THIS BILL IS
STACEY TOUCH WITH THE
UNIVERSITY OF CALIFORNIA IRVINE
LAW SCHOOL AND DANIEL CAN DO
HIGHS ARE WITH THE CALIFORNIA
LOW INCOME CONSUMER COAL
COALITION. THE SPONSOR OF THIS
BILL. MODERATOR PLEASE
CONNECTIONS WITH STACY TIME
FROM UCI LAW SCHOOL. YOUR LINE
IS OPEN. THANK YOU FIRST I
WOULD LIKE TO THANK THE AUTHOR
ASSEMBLY MEMBER COURT OKAY AND
THE COMMITTEE COURTS
CONSIDERATION MY NAME IS STACY
PAT DIRECTOR LAW CLINIC AT USED
IRVINE SCHOOL OF LAW I AM HERE
ON BEHALF OF THE CASE
HOMEOWNERS WE CURRENTLY
REPRESENT AS WELL AS THE
NUMEROUS OLDER. BUT A THOUGHT
OR IF THE WITH MORTGAGE. DUE TO
THEIR INABILITY TO PAY PAID THE
PATH THANKFULLY THE CURRENT FOR
MORE IS PROVIDING HOMEOWNER
ATTEMPT RESPITE BUT MANY WILL
BE FACED HOME WITH UPON THE
MORE TO FACT. ONE SUCH
HOMEOWNERS ARE CLIENTELE THE
FOSTER MISTER FOSTER MOVED IN
HER MOTHER'S HOME TO FIVE YEARS
AGO TO CARE FOR HER AND AFTER
HEARING THE PROPERTY CAN TO
LIVE IN THE HOME WITH HER
SISTER THE FOSTERS WERE TO BY
RIPPING. IN OCTOBER TWENTY.
TRIED TO STAY IN BY THE
CONTRACTOR STATE LIGHT BOARD AS
A RESULT OF THE FINANCIAL ELDER
OF A THAT WITH ON THE HOME
USING THE FALLS IN ADDRESS OF
NINE IF YOU'RE A FINE. THE
EFFECT MORE THAN TRIPLE HER
ANNUAL PROPERTY. THERE'S FILED
COMPLAINTS WITH NUMEROUS
GOVERNMENT A- AND FILE A
LAWSUIT CONRAD TO TRAIN. THE
COURT CLOSURES THE LABOR THE
CATION. AND PAPER. RENOVATED
FILE FROM. FORTY MISS FOSTER TO
CONTINUE. AND PRICE TAX.
BECAUSE OF INABILITY TO PAY.
MISS FOSTER'S EVERY MORE
SERVICER PAID HER PROPERTY TO.
AND POSTED A NOTICE OF. SALE ON
HER JOB. COSTING HER MORTGAGE.
OVER HUNDRED. THAT DOLLARS IN
ATTORNEY FEES WHICH WERE ADDED
TO THE- MORTGAGE BACK. YOUR APP
TODAY TO PREVENT THIS BY.
LOADED AND HOMEOWNER ACT TO THE
LAW RESERVE. BY COVERING THE-
THAT FOR. WERE YEARS HOME WOULD
GAVE IT THEY NEED TO PURSUE
THEIR PRICE CLAIM. MORTGAGEE
WOULD AVOID THE SIX. COST
REPORT. AND BY WOULD BE
PROTECTED FOR ALL. ADMITTEDLY
THE OF HOME FAMILY SUCH. ATOP
THAN. BUT I EXPAND THE LOS
THIRTY FIVE ELIGIBLE. WE WILL
ATTAIN A. GOOD AFTERNOON CHAIR
AND MEMBERS DANIEL KENDALL
CARTER ON BEHALF OF THE CO
SPONSORS OF THE BILL THE
CALIFORNIA LOW INCOME CONSUMER
COALITION. THANK YOU FOR THE
OPPORTUNITY TO SPEAK ABOUT
EIGHTY EIGHT SEVENTY FOUR. THE
LEGISLATURE HAS ENACTED
MULTIPLE BLOGS SINCE TWENTY
SEVENTEEN TO REFORM THE PACE
PROGRAM ADICIONAL CONSUMER
PROTECTIONS ARE NEEDED. TO
ASSIST BOTH BOTH HOMEOWNERS WHO
HAVE ALREADY BEEN HARMED. AND
THOSE WHO MAY BE IMPACTED BY
THE PACE ASSESSMENTS THEY
SIMPLY CANNOT AFFORD. EIGHTY
EIGHT SEVENTY FOUR WOULD
ADDRESS ONE OF IF NOT THE MOST
SERIOUS ISSUES FACED BY
HOMEOWNERS THE POSSIBILITY OF A
FORECLOSURE. TOO OFTEN
HOMEOWNERS LOOKING TO MAKE HOME
IMPROVEMENTS TO THE PACE
PROGRAM ARE EITHER MISLED OR
MIS UNDERSTAND THAT THERE'S
LIKELY TO BE A SIGNIFICANT
INCREASE IN THEIR MONTHLY
MORTGAGE PAYMENT. AND THEY ALSO
MAY BE UNAWARE OF THE CRITICAL
FACTOR TO SUPER PRIORITY LIEN
IS PLACED UPON THE HOME TO
COVER THE AMOUNT OF THE CASE
LOAN. AS CALIFORNIANS CONTINUE
CONTINUE TO STRUGGLE UNDER THE
BURDEN OF THE PANDEMIC RELATED
RECESSION MORE MORE HOMEOWNERS.
ARE FACING AN INABILITY TO PAY
THEIR MORTGAGE. EIGHTY EIGHT
SEVENTY FOUR BUT DIRECTLY
ASSIST ELIGIBLE HOMEOWNERS BY
ALLOWING THEM TO APPLY FOR
ASSISTANCE THROUGH THE ALREADY
EXISTING PACE LOSS RESERVE FUND.
AND ASKED THE COMMITTEE
ANALYSIS INDICATES AN ELIGIBLE
HOMEOWNER IS SOMEONE WHO
QUALIFIES AS LOW TO MIDDLE
INCOME AND SOMEONE WHO IS
EITHER. AT LEAST FORTY FIVE
DAYS DELINQUENT ON THEIR
MORTGAGE. OR DELINQUENT ON A
PROPERTY TAX INSTALLMENT
PAYMENT THAT INCLUDES THE CASE
ASSESSMENT. IN CLOSING CLICK IN
THE SUPPORTERS OF EIGHTY EIGHT
SEVENTY FOUR WANT TO THANK THE
AUTHOR AND THE STAFF AS WELL AS
THE STAFF THE KEEPER FOR THE
ONGOING DIALOGUE ABOUT THIS
BILL AND ITS IMPLEMENTATION. AB
SEVENTY FOUR WILL DIRECTLY
ADDRESS ONE OF THE STATE'S MOST
CRITICAL ISSUES KEEPING LOW TO
MIDDLE INCOME HOMEOWNERS IN
THEIR HOMES. WE RESPECTFULLY
ASK YOUR AYE VOTE. THANK YOU
VERY MUCH ARE THERE ANY
WITNESSES IN SUPPORT THE BACK
OF THE CHAMBER FOR MORE IN THE
GALLERY. SEE NONE OTHER THAN
WHATIS OPPOSITION. THE GALLERY.
SEE NON MODERATOR ORDINANCES OF
SUPPORT ON THE PHONE OR IN THE
QUEUE. THANK YOU MR AND LADIES
AND GENTLEMEN IF YOU WISH TO
SPEAK IN SUPPORT OF AB EIGHT
SEVENTY FOUR YOU MAY PRESS ONE
AND THEN ZERO AT THIS TIME.
NINE EIGHTY FIVE. YOUR LINE IS
OPEN PLEASE GO AHEAD. HI THIS
IS MAGGIE WRITTEN BURKE ON
BEHALF OF THAT STATIC LEGAL
SERVICES IN SUPPORT AT EIGHTY
EIGHT SEVEN FOUR THANK YOU.
LINE EIGHTY FOUR. ONE MOMENT
NINE EIGHTY FOR YOUR LINE IS
OPEN PLEASE GO AHEAD. THAT
AFTERNOON SHARING MEMBERS AT
LEAST ERIN AT THE PUBLIC
LAWCENTER IN ORANGE COUNTY IN
SUPPORT OF AB. EIGHTY FOUR. MY
NINETY FOUR YOUR LINE IS OPEN
PLEASE GO AHEAD. AND THIS IS
PART OF ALL COVER WITH THE
INFLUENCE OF CALIFORNIANS FOR
COMMUNITY EMPOWERMENT OR EIGHT
CALLING IN FAVOR OF EIGHT
SEVENTY FOUR. NINE NINETY FIVE
YOUR LINE IS OPEN PLEASE GO
AHEAD. EMILY DEL ON BEHALF OF
THE CALIFORNIA CREDIT UNION
LEAGUE IN SUPPORT. NINE EIGHTY
SEVEN. YOUR LINE IS OPEN PLEASE
GO AHEAD. THIS IS KATHLEEN MARY
FROM PUBLIC COUNCIL IN LOS
ANGELES IN STRONG SUPPORT OF AB
EIGHT SEVENTY FOUR. NINE EIGHTY
ONE YOUR LINE IS OPEN PLEASE GO
AHEAD. GOOD AFTERNOON ANNA BACK
ON BEHALF OF THE CALIFORNIA
ASSOCIATION OF REALTORS IN
STRONG SUPPORT THANK YOU. WE
HAVE NO FURTHER COMMENTS THANK
YOU IN SUPPORT OF AB EIGHT
SEVENTY FOUR. THANK YOU
MODERATOR ARE THERE ANYONE IS
IN A POSITION ON THE PHONE OR
IN THE QUEUE. THANK YOU MR
CHAIRMAN LADIES AND GENTLEMEN
IF YOU WISH TO SPEAK IN
OPPOSITION OF EIGHTY EIGHT
SEVENTY FOUR YOU MAY PRESS ONE.
AND THEN ZERO AT THIS TIME.
THERE ARE NO COMMENTS IN QUEUE
AT THIS TIME. REMEMBERS ANY
QUESTIONS. SO MEMBERS ARE
POSSIBLE WOULD YOU LIKE TO
PROVIDE A CLOSING STATEMENT.
JUST I WOULD LIKE TO ASK THE
COMMITTEE TO SUPPORT AB EIGHT
SEVEN FOUR. EFFORT TO KEEP.
SOME OF OUR MOST VULNERABLE
VULNERABLE CITIZENS IN THEIR
HOMES. THANK YOU VERY MUCH- I
BELIEVE THERE'S BEEN A MOTION
HAS AROUND SECOND. SEVEN
MEMBER- BURKE WITH FAST- IT IS
TO PASS TO ASSEMBLY
APPROPRIATIONS COMMITTEE ABOUT
A SECTOR PLEASE CALL THE ROLL.
GRAYSON CHEN HI GEN HI THERE
CAN WHERE CAN I BURKE. BURKE HI
CHOI CHOI HI CERVANTES. ZERO
CRISTINA GARCIA IN GARCIA I
JANET NGUYEN JANET NGUYEN HI
PETRIE-NORRIS. PETRIE-NORRIS I
STILL. STONE HI WICKS. THE BILL
HAS EIGHT VOTES THROUGHOUT THE
ROADS WILL LEAVE THE CALL OPEN
FOR ABSENT MEMBERS THANK YOU-
CURRENTLY WE'RE GOING TO DO A
SHORT RECESS IN PREPARATION FOR
OUR NEXT FILE ITEM. THANK YOU
VERY MUCH.
MENEM SECTOR IF WE
DO THE ADD ONS RIGHT NOW. AB
THIRTEEN NINETY NINETEEN DO
PASSED COMMITTEE ON
APPROPRIATIONS. GRAYSON
CERVANTES. GABRIEL WICKS. TO
HAS FIVE FIVE PHONES. NEVADA
CALL. EIGHTY FIVE ELEVEN DO
BASS TO COMMITTEE ON
APPROPRIATIONS. ISN'T CERVANTES
APRIL. WHEN I. WICKS THE BILL
HAS A BOTH. WELL WE'RE GOING TO
LEAVE IT OPEN. AB ELEVEN
SEVENTY TWO TO PASS AS AMENDED
TO COMING OUT OF PREPARATIONS
GRAYSON. CERVANTES GABRIEL.
WICKS STILL HAS A BOTH. EIGHTY
EIGHT SEVEN FOUR. EST COMMITTEE
ON APPROPRIATIONS GRAYSON
CERVANTES GABRIEL WICKS BILL SO
THEY BOTH. WE'LL LEAVE IT OPEN.
ROTTENBERG.
YOU HAVE OKAY YOU
REALLY HOW LONG HAVE YOU BEEN
ON.
WE ARE RETURNING FROM
RECESS ASKING ALL MEMBERS FOR
BANKING AND FINANCE- TO RETURN
BACK TO THE CHAMBER FLOOR. TO
RESUME. OUR MEETING AND- AS
THEY'RE RETURNING WE WILL GO
AHEAD AND BEGIN WITH
PRESENTATION OF ITEM NUMBER
FIVE AB. ELEVEN SEVENTY SEVEN.
COME THIS BILL WE WILL HAVE A
JOINT PRESENTATION. ASSEMBLY
MEMBER SANTIAGO AND CHU THE
RECOMMENDATION IS TO PASS AS
AMENDED. AND- THIS TO SANTIAGO
ASSEMBLYMEMBERS SANTIAGO YOU
MAY BEGIN CHECK AND THANK YOU
MISTER CHAIR AND I REALLY HAVE
TO SAY- THAT I AM EXTREMELY
GRATEFUL I'VE WORKED ON A LOT
OF BILLS ONE- IN MY CLOSE TO
SEVEN YEARS HERE IN THE
LEGISLATURE AND I CAN TELL YOU
THAT- THAT IT'S A FEW TIMES
WITHOUT CERTAIN WITHOUT ROBUST.
DEBATE IS HAD- BETWEEN MEMBERS
OF THE COMMITTEE- THE CHAIR AND
THE LEVEL OF ENGAGEMENT AND I
THINK THE BILL BECOMES- MUCH
BETTER BILL BECAUSE OF THAT-
YOUR ENGAGEMENT- ALONG THE WAY
THE AMENDMENTS THAT YOU
PROPOSED I WILL MAKE THIS A
SERIES POLICY PROPOSAL- THAT
HOPEFULLY MAKES ITS WAY TO THE
GOVERNOR'S- OFFICE I WANNA
THANK MY STAFF AND I WANT TO
THANK. FOR SURE YOUR STAFF WAS
SPENT ENDLESS AMOUNT OF TIME TO
MAKING SURE THAT WE'RE YOU ARE
HEADED- IN SOUND PUBLIC POLICY-
AND I WANNA SAY AGAIN TO THE
COMMITTEE MEMBERS- WHO REALLY-
ASKED THE TOUGH QUESTIONS- THE
FORCES TO COME BACK TAKE A LOOK
AT THIS AND BUT IT WITH A VERY
SERIOUS LENDS AND HOPING. THAT
WE ARE ACHIEVING OUR GOAL-
WHILE KEEPING OUR COMMITMENT TO
THE STATE- AND ARE FIT IN OUR
FINANCIAL- OBLIGATIONS TO
ENSURE THAT WE ARE PUTTING WITH
THE WITH THE DOLLARS IN N. I
WANTED THEN BEGIN BY ACCEPTING
THE COMMITTEES- PROPOSED
AMENDMENTS I WHICH WILL REQUIRE
OUR MARKET FEASIBILITY STUDY
THAT ASSESSES THE- WHETHER THE
PROGRAM CAN BE IMPLEMENTED
EFFECTIVELY AND WHETHER IT WILL
BE SUSTAINED- THIS REPORT WILL
ALSO INCLUDE ADDITIONAL
INFORMATION ON WHAT THE STATE'S
RISK MAYBE AND RUNNING THIS
PROGRAMME DURING A BAD ECONOMIC
TIMES- THIS REPORT WILL ALSO
COME BACK TO THE LEGISLATURE
FOR REVIEW- AND THE LEGISLATURE
WILL DETERMINE IF THE PROGRAM
CAN BE IMPLEMENTED. ARE THESE
OF THESE AMENDMENTS WILL GIVE
US ALL THE NECESSARY
INFORMATION TO MAKE AN INFORMED
CHOICE. ON THE NEXT STEPS. TO A
BANK SHOULD THIS COMMITTEE-
COMMITTEE THIS BILL MAY. AND
MMHM MOST OF US SPEND SOME TIME
ON THE BILL BUT JUST TO
REITERATE WHAT WE ARE TRYING TO
DO AB ELEVEN SEVENTY SEVEN SIX
TO CREATE THE BANK CAL PROGRAM.
WHICH GIVES EVERY CALL
CALIFORNIA THE OPPORTUNITY TO
HAVING A NO FEE NO PENALTY
ACCESS AND IT TO FINANCIAL
SERVICES- LIKE A DEBIT CARD OR
DIRECT DEPOSIT. AT BOTH OF
YOU'VE HEARD ME SAY THAT ONE IN
FOUR CALIFORNIANS DON'T HAVE A
BANK ACCOUNT AND USE EXPENSIVE
FINANCIAL SERVICES LIKE A CHECK
CASHES PAYDAY LENDING OR WHAT
WE OFTEN SEE NEIGHBORHOODS- LOW
INCOME WORKING COMMITTEES LIKE
MYSELF WHERE I LIVE. WHERE YOU
SEE LIQUOR STORES ARE SIGNS
THAT WE CASH CHECKS AND THERE'S
A- CERTAIN AMOUNT OF FEE FOR
THAT. HELPING HER WILL NOT
CREATE A PUBLIC BANK- BUT IT'S
BEEN SAID OVER AND OVER AND-
BUT ONE STATE FOR THE RECORD.
DOES NOT CREATE A PUBLIC- BUT
IT WILL PARTNER WITH EXISTING
FINANCIAL INSTITUTIONS-
TOPPERS- ZERO CLASS ZERO- A
PENALTY DEBIT CARDS. ACCOUNTS
THE- THAT FOLKS CAN FULLY
PARTICIPATE IN ECONOMY AND
BRIDGE- THAT RACIAL WEALTH GAP.
HERE'S HERE'S WHY IT'S
IMPORTANT ON THE UNDERBANKED
AND UNBANKED COMMUNITIES. AND
WE'VE HAD THIS DISCUSSION IS
OFTENTIMES WHEN SOMEBODY IS OF
LOW- INCOMING YOU'RE MAKING
FIFTEEN. DOLLARS AN HOUR. THAT
FIFTEEN DOLLARS NOW NOT REALLY
FIFTEEN DOLLARS AN HOUR. WHEN
YOU BEGIN TO TAKE A LOOK AT
THAT DOLLAR AND IF THERE'S
OVERDRAFT FEES THERE'S FEES
THERE'S CHARGES A MINIMUM
BALANCES THAT FIFTEEN DOLLARS
AN HOUR. CONTINUES TO SHRINK
AND WHAT WE'RE REALLY TRYING TO
DO HERE IS TO HELP- THOSE ON
THE LOWEST ECONOMIC SCALES WHO
ARE EITHER UNDERBANKED OR
UNBANKED TO HAVE THAT
OPPORTUNITY TO BUILD UP THAT
CREDIT TO BE ABLE TO. PURCHASE
A CAR TO BE ABLE TO BE-
HOMEOWNERS TO BE ABLE TO MOVE
ON THAT NEXT AVAILABLE STAFF
AND YOU KNOW TELL YOU FROM THE
EXPERIENCE THAT I HAD ONE WHEN
I WAS A CHILD. YOU OFTENTIMES
WHEN IMMIGRANT COMMITTEES COME
TO THE UNITED STATES OF
FINANCIAL SITUATIONS ARE ARE
THOSE- I DON'T THINK THERE FOR
AND IT IS TRUE WHEN I WAS
GROWING UP THAT OUR PARENTS
WOULD. GO TO THE GO TO THE
LOCAL LIQUOR STORE CASH A CHECK
AND YOU KEEP THE MONEY HOME
THIS IS EXACTLY WE'RE TRYING TO
AVOID WORK TRYING TO GET PEOPLE
IN THE SYSTEM TO GET BANKED SO
THAT WE HAVE THAT. OPPORTUNITY
TOWARDS THE AMERICAN DREAM IN
ELEVEN SEVENTY SEVEN THE PUBLIC
BANKING OPTION GIVES US THAT
OPPORTUNITY AND NOW IT PRESENTS
I WILL HEAD OVER TO A MISTER
TO. WHO'S BEEN A- JOINT AUTHORS
BILL FOR. THANK YOU MR SANTIAGO
THANK YOU MISTER CHAIR LET ME
JUST FIRST START BY THANKING-
ARE CHAIR THINKING MANY OF THE
MEMBERS OF THIS COMMITTEE I
KNOW FOR. DEEP ENGAGEMENT O
THIS BILL AND APPRECIATE- THE
WORK TO MOVE THIS FORWARD WITH
THE MINUTES THAT WE'RE
DISCUSSING. JUST A BUILT ON-
OUR OUR OUR LEAD AUTHOR AND I
WANT TO SAY I'M ONE OF I THINK
CLOSE TO TWENTY. CO AUTHORS OF
THIS BILL. WHAT WE ARE TRYING
TO ADDRESS ARE THE INCREDIBLE
CHALLENGES FACING MANY OF OUR
LOW INCOME COMMUNITY MEMBERS.
WHO HAVE TO PAY MORE TO ACCESS
THEIR MONEY- THEN FOLKS ARE NOT
IN THEIR FINANCIAL STATUS- T.
PAIN UP TO TEN PERCENT. OF
THEIR TAKE HOME PAY IN FEES AND
INTEREST. FROM HIGH COST
FINANCIAL SERVICES AND PART OF
WHAT WE'RE TRYING TO DO. WITH
THIS BILL IS REALLY. ALLOW FOR
THE PROVISION OF BASIC
FINANCIAL SERVICES TO HELP
LEVEL THE PLAYING FIELD.
ELIMINATE THE NEED FOR HIGH
COST ALTERNATIVES. AND ALLOW
OUR COMMUNITIES TO BUILD WEALTH
AND BUILD BACK BETTER. FROM
THIS PANDEMIC AS- OUR LEAD
AUTHOR HAS STATED ONE IN FOUR.
ONE IN FOUR OF OUR
CONSTITUENTS. EITHER DON'T HAVE
A BANK ACCOUNT FOR UC'S COSTLY
FINANCIAL SERVICES. LIKE PAYDAY
LENDERS AND CHECK CATCHERS.
THAT'S WHAT WE'RE TRYING TO
BUILD ON AS HE- REITERATED. WE
ARE NOT CREATING A PUBLIC BANK-
WE'RE TRYING TO CREATE. AN
ORGANIZATION THAT COULD PARTNER
WITH EXISTING FINANCIAL
INSTITUTIONS TO PROVIDE FREE
DEBIT CARD ACCOUNTS- THIS BILLS
ARE WORK FROM TWO YEARS AGO
THAT ALLOW OUR CITIES. TO PILOT
ALTERNATIVES TO TRADITIONAL
BANKING IN EIGHTY EIGHT FIFTY
SEVEN. AND AGAIN WANT TO THANK
OUR COALITION THAT'S BEEN
WORKING ON THIS. ON THIS- ONE
OF THE KEY REQUIREMENTS THAT
SHOULD BE HIGHLIGHTED IS THAT
THIS PROGRAM. WOULD REQUIRE THE
MARKET ANALYSIS- TO ENSURE THAT
A PROGRAM IS FINACIALLY VIABLE
BEFORE STATE DOLLARS ARE USED.
TO ROLL OUT THE PROGRAM- AND
WITH THAT. RESPECTFULLY ASK
YOUR SUPPORT. THANK YOU FOR WE
WILL NOW MOVE ON TO WITNESSES
IN SUPPORT. A REMINDER
WITNESSES THAT YOU HAVE TWO
MINUTES EACH. OUR FIRST WITNESS
IN SUPPORT WILL BE TESTIFYING
OVER THE PHONE. MODERATOR
PLEASE CONNECTORS WITH JODIE
FORMER BY LAW. FROM THE
CALIFORNIA REINVESTMENT
COALITION. GOOD AFTERNOON CHAIR
AND MEMBERS OF THE COMMITTEE
AND Y NAME IS GEORGE ABOUT
WHAT THE COMPANY OF
REINVESTMENT COALITION. I'M
JUST LAST WEEK THE AMERICAN
PROSPECT REPORTED BY JPMORGAN
CHASE MAIDSTONE. ONE FIVE
BILLION IN OVERDRAFT FEES ALONE
IN TWENTY TWENTY. BANK OF
AMERICA MADE ONE POINT ONE
BILLION AND WELLS FARGO MADE
ONE POINT THREE BILLION. SO
WHILE AMERICANS SUFFERED
THROUGH OUR WORST PUBLIC HEALTH
CRISIS IN A HUNDRED YARDS WITH
UNEMPLOYMENT SKY HIGH AND
INTERMITTENTLY LAPSED FEDERAL
BENEFITS. THE COUNTRY'S BIGGEST
BANKS ARE DOUBTING THE POOREST
AMERICANS FOR BILLIONS OF
DOLLARS IN PUNITIVE SHE-
CURRENTLY BANKS HAVE NO
INCENTIVE TO BEHAVE
DIFFERENTLY. ON THE FUNDS FROM
THE POLICIES AND PRACTICES OF
BANKS GO BACK MANY DECADES
CAUSING DEEP MISTRUST IN
COMMUNITIES OF COLOR IN
PARTICULAR. LAST YEAR WE
PUBLISHED A REPORT REGARDING
ACCESS TO FINANCIAL SERVICES
WITH THE OFFICE OF WITH SAN
FRANCISCO'S OFFICE OF FINANCIAL
EMPOWERMENT. THE REPORT FOUND
THAT WELL OVER 40% OF BLACK AND
NOT NEXT HOUSEHOLDS ARE
UNBANKED AND UNDERBANKED. NO
SURPRISE RIGHT. FOR THEIR EXACT
ISSUE THIS GAP INC FINANCIAL
PRODUCTS AS MATT BY HIGH COST
FINANCIAL SERVICES LIKE CHECK
CASHIERS. AND PAYDAY LENDERS
WHO ARE DISPROPORTIONATELY
CONCENTRATED IN COMMUNITIES OF
COLOR. HISPANIC CONTRIBUTES TO
THE EVER WIDENING RACIAL WEALTH
GAP. AB ELEVEN SEVENTY SEVEN
GIVE ALL CALIFORNIANS AN OPTION
OTHERS NO FEE NO PENALTY
ACCOUNT WITHOUT OVERDRAFT
CHARGES. THE RESULTING STATING
THAT HAVE THE POTENTIAL TO SAVE
HARD WORKING FAMILIES FROM COOL
THAT TRAPS OF SMALL DOLLAR
LOANS. IN ADDITION TO THE
ABILITY TO PAY BILLS- THE OTHER
SERVICE IT WILL HELP
PARTICIPANTS BUILD THEIR
CREDIT. SUCH THAT THEY CAN
PARTICIPATE IN THE FINANCIAL
MARKETS AND FINALLY BE ON THE
PATH. TO UPWARD MOBILITY AND
WEALTH GENERATION THEY CAN NOW
QUALIFY FOR A CREDIT CARD OR A
SMALL BUSINESS LOAN THAT IS OUT
OF REACH RIGHT NOW. AB ELEVEN
SEVENTY SEVEN PROVIDE FAMILIES
WITH STATE FINANCIAL PRODUCTS
THAT WILL BECOME THE FOUNDATION
FOR FINANCIAL STABILITY OF THE
WHOLE HOUSEHOLD. ABLE
PROFOUNDLY AND POSITIVELY
CHANGE THE FINANCIAL SECURE.
SECURITY OF OTHERWISE WINNABLE
CALIFORNIANS FAMILIES WE THANK
YOU FOR YOUR SUPPORT OF THIS
IMPORTANT. LEGISLATION WORK.
THANK YOU WE WILL NOW GO TO THE
SECOND WITNESS. WHO WILL BE
TESTIFYING OVER THE PHONE
MODERATOR PLEASE CONNECT US
WITH RENEE BAYARDO. FROM SEIU
CALIFORNIA. THANK YOU MISTER
CHAIRMAN BIRDS WHEN THEY BATTLE
WITH THAT THE ARE YOU
CALIFORNIA WE ARE CO SPONSOR
ALONG WITH THE CALIFORNIA
PUBLIC BANKING ALLIANCE IN THE
CALIFORNIA REINVESTMENT
COALITION. FIRST WE'D LIKE TO
THANK YOU MISTER CHAIR FOR YOUR
WORK ON THAT AS WELL AS THE
OTHER COMMITTEE MEMBERS AND THE
COMMITTEE'S YEAH. WE BELIEVE
WE'VE BEEN GAVE SOME PRODUCTIVE
CONVERSATIONS AROUND THE BILL
WE ALSO LOOK FORWARD TO
CONTINUING TO WORK WITH YOU AS
THE BILL MOVES THROUGH THE
PROCESS. I WILL REPEAT SOME OF
THE THINGS THAT HAVE BEEN SAID
ABOUT THIS POINT OUT THAT SOME
OF THE PREVIOUS AMENDMENTS
UNABLE TO TWENTY FIRST ADDRESS
SOME OF THE INITIAL CONCERNS WE
HEARD THAT THE PROGRAM COULD
REQUIRE A LONG TERM SUBSIDY
FROM THE STATE OR THAT THE
STATE COULD INCUR LIABILITIES
FROM THE PROGRAM WE WANT TO
MAKE SURE THAT THAT WAS TAKEN
CARE OF- I WOULD SAY THE SEIU
CALIFORNIA POLICE. AB ELEVEN
SEVENTY SEVEN IT'S INCREDIBLY
IMPORTANT THAT'LL HELP THE
UNBANKED AND UNDERBANKED TO
PROP ARE PRIMARILY BLACK AND
LATINO- THEY COMMITTEE
ANNOUNCES NOTES THAT FIFTY
PERCENT. OF BLACK HOUSEHOLDS
DON'T HAVE A BANK ACCOUNT 40%
OF LATINO WE COMPARED WITH THE
TWO POINT 4% WHITE I THINK
ABOUT SOME OF AN ASTONISHING
NUMBER- I WOULD ALSO POINT OUT
THAT THE COMMITTEE ANALYSIS
NOTE THAT THE PRIMARY REASON
PEOPLE ARE UNBANKED OR- ONE
MINIMUM BALANCE REQUIREMENTS
CHU HI FI. AND THREE A GENERAL
DISTRUST OF BANKS WE BELIEVE AB
ELEVEN SEVENTY SEVEN LAVA DRESS
THE FIRST TWO CONCERNS BY
CREATING THE SNOW PEAS BANKING
ACCOUNT. WE ALSO UNDERSTAND
THAT A BILL ALONE CANNOT CURE
PERSONS DISTRUSTED BANKS
HOWEVER WE BELIEVE THE
INCREDIBLY LONG LIST OF
SUPPORTERS INCLUDING UNIONS
LIKE SEIU AT ALL COMMUNITY
BASED ORGANIZATIONS WILL- BE
ABLE TO HELP BRIDGE THE GAP-
I'M HERE TO ANSWER ANY
QUESTIONS THE COMMITTEE MAY
HAVE AGAIN WE THANK YOU FOR
WORKING WITH US ON THIS. WE
RESPECTFULLY ASK YOUR SUPPORT.
THANK YOU FOR YOUR TIME. WE
WILL NUMBER TO WITNESS. IN OP.
I REAL. WITH THAT YOU HAVE. TO
ME EACH. I FIRST WITH AN OP.
WILL TESTED OVER THE PHONE.
MODERATOR PLEASE CONNECT THIS
TO ROBERT WILSON. FROM THE
CALIFORNIA CREDIT UNION LEAGUE.
MISTER- LINE IS OPEN. THANK YOU
GOOD AFTERNOON MR CHAIRMAN
MEMBERS OF THE COMMITTEE ROBERT
WILSON A CALIFORNIA CREDIT
UNION LEAGUE THANK YOU FOR THE
OPPORTUNITY TO OFFER SOME BRIEF
COMMENTS IN OPPOSITION TO
ELEVEN SEVENTY SEVEN. LET ME
START BY SAYING CREDIT YOU'D BE
GREETED WITH THE STATED INTENT
OF THE BILL FROM THE BELIEVE IT
A LAUDABLE GOAL WE OPPOSE THE
BILL BECAUSE WE BELIEVE THE
BILL CONFLICTED. SOMEONE IS
CURRENTLY IN THE MARKETPLACE.
BUT THE BUILDERS. ACCORD DATA
FEDERAL RESERVE AND THE FDIC.
FIVE AND 6% OF HOUSEHOLDS ARE
COMING BACK WITH ANOTHER WIFE.
OVER 94% OF HOUSEHOLDS ARE
BANK. STATED THAT WE STILL
FIRMLY BELIEVE THAT IF LAST
526% OF HOUSEHOLDS TWO FIVE.
WHICH IS LIKE REVIEWS HAVE BEEN
ATTEMPTING TO BRING MORE
SERVICES TO THIS POPULATION.
THANK YOU THE ON BANK IS
PRECISELY WHY CURRENT MEANS
WE'LL START OVER A HUNDRED
YEARS AGO. CREDIT UNION NOT FOR
PROFIT MEMBER OWNED
COOPERATIVES WITH THE GOAL OF
SERVING THOSE OF MODEST MEANS.
THIRTY ONE EIGHTY NINE CREDIT
UNIONS HEADQUARTERED IN
CALIFORNIA. IN EVERY CORNER OF
THE STATE AND A VAST MAJORITY
OF THESE CREDIT UNIONS OFFER
LOCAL NO FEE CHECKING ACCOUNTS
WITH FEATURES SIMILAR WHAT BANK
CAL COUNCIL. WHERE DID YOU GET
CREDIT USE THERE'S A NETWORK OF
A HUNDRED FIFTY BANKS WILL ALSO
FALL BUT SOMEWHERE CAL. MANY
FINANCIAL INSTITUTIONS ALSO
PARTICIPATE IN A PROGRAM CALLED
BANK ON WHICH IS RUN BY THE
CITIES FOR FINANCIAL
EMPOWERMENT. PROGRAMS GOLDEN
STATE AND HAD THE BILL OR ONE
OF THE SAME. ON BANK BANK. IT
DOES SO BY OFFERING BANK ON
CERTIFIED ACCOUNT AFTER
DISPLAYING FINANCIAL
INSTITUTION. LOW NOKIA
CALIFORNIA'S NEW COMMUTING
WHICH WHY DO YOU ALL FEEL
BETTER MORE COST EFFECTIVE WEST
BRICK LANE APPROACHES TO REDUCE
POPULATION. CRAZY PART WITH
LOCAL NONPROFIT TO HELP REACH
UNBANKED POPULATION POTENTIALLY
COULD DO BETTER WITH HELP FROM
THE STATE AND PEOPLE LIKE TO
SPONSOR THIS BILL. IN ADDITION
TO THE RICH PARKER IS ALSO
CONCERNED OF CAL IF SUCCESSFUL
COULD WORK IN A POT BASE OUR
COMMUNITY LIKE IT'S LIKE RIGHT
YOU JUST NEED TO BACK. IN ORDER
BANK CAL BE SUCCESSFUL I'LL BE
MORE THAN LIKELY HAVE TO PART
WITH A LARGE FINANCIAL TO
SHOULD DO DECIDE TO GEOGRAPHIC
AREA. WHICH WILL BE DEPARTMENT
BEING LED AWAY COMPUTING
LENDERS AND THEN TURNED LEFT
MONEY TO LAND IN THE COMMUNITY.
IF YOU APPRECIATE ALL THE WORK
THE CHAIR. MEMBER OF THE
COMMITTEE AND STAFF PUT INTO ON
THIS BILL. AND APPRECIATE THE
AMENDMENT THAT HAVE BEEN
OFFERED A LOOK BORDER VIEWING
OF ONE HAND PRINT. BUT I CANNOT
WE ARE CLOSE ABOUT THANK YOU
VERY MUCH. THANK YOU AND
MODERATOR WOULD YOU PLEASE
CONNECT US WITH THE SECOND
WITNESS IN OPPOSITION JASON
LANE. FROM CALIFORNIA BANKERS
ASSOCIATION. MISTER MINER LINE
IS OPEN. THANK YOU MEMBERS OF
THE COMMITTEE WE VERY MUCH
APPRECIATE THE HARD WORK OF THE
COMMITTEE IS DONE ON THIS BILL
WE AGREE WITH THE AUTHOR THERE
WAS A LOT OF DELIBERATION AND
DISCUSSION PARTICULARLY IN THE
LAST FORTY HOURS FORTY EIGHT
HOURS WE DO ALSO APPRECIATE THE
DIRECTION THAT THE AMENDMENTS
ARE TRYING TO TAKE THE BILL-
THE ACCEPTED AMENDMENTS IF
ACCEPTED CIRCLING IMPROVE THE
MEASURE BUT WE REMAIN CONCERNED
THAT THE BOARD IS IN ESSENCE.
STARTING ITSELF AND WONDER IF
THE STUDY SHOULD COME BEFORE
THE COMPOSITION OF THE ACTUAL
BOARD WE ALSO APPRECIATE THE
PROPOSED AMENDMENT THAT
REQUIRES FINAL APPROVAL BY THE
LEGISLATURE- WE WOULD HOPE THAT
THE APPROVAL WILL FALL UNDER
THE PURVIEW OF THIS COMMITTEE
GIVEN ITS EXPERTISE IN
JURISDICTIONS. ULTIMATELY
THOUGH AND ADEQUATE FEASIBILITY
STUDY WHICH WE BELIEVE SHOULD
BE FULLY FUNDED BY
APPROPRIATIONS. MAY VERY WILL
TELL YOU WHETHER OR NOT THE
PROGRAM COULD BE SELF
SUSTAINING WHETHER OR NOT IT
MIGHT BE PROFITABLE OR
BREAKEVEN. WHAT IT CAN'T TELL
YOU OR THE INHERENT AND
POTENTIAL RISKS THAT ARE HARD
TO QUANTIFY. SO THE BANK CAL
PROPOSES TO BE THE FACE OF
BANKING FOR THE-
USER. YES
THERE WILL BE BACK IN A. UNITY
AND OWNS THE CUSTOMER
RELATIONSHIP IT BECOMES THE
RECIPIENT OF ALL THE CRITICISM
FOR PROBLEMS THAT ARISE FROM
THAT RELATIONSHIP. IF THERE ARE
GLITCHES AND DEPOSITORS CAN'T
ACCESS THEIR ACCOUNT. IT'S
GOING TO BE THE STATE OF
CALIFORNIA THAT RECEIVES THAT
CRITICISM. BECAUSE BANK CALLOUS
CORRECTING SENSITIVE
INFORMATION IF THEIR DATA
BREACHES OF CUSTOMER
INFORMATION STOLEN IF THERE IS
IDENTITY THEFT IF YOU USE THE
STATE THE WILL ONLY LIABILITY
DESPITE. PROVISIONS THAT HAVE
BEEN ADDED TO THE BILL STATING
OTHERWISE AND THESE ARE JUST
EXAMPLES OF A MYRIAD OF
POTENTIAL PROBLEMS THEY'RE VERY
HARD TO CAPTURE IN THE
FEASIBILITY STUDY SO. WE'D BE
REMISS IF WE DIDN'T POINT THOSE
OUT WE APPRECIATE THE
AMENDMENTS WE ARE REVIEWING
THEM BUT STILL THE COALITION
REMAINS OPPOSED TO ANY REVIEW
OF THE ACTUAL LANGUAGE. THANK
YOU. THANK YOU FOR YOUR TEST.
WE NOW MOVE ON TO PUBLIC. OTHER
IN WITNESSES SUPPORT AND BACK
OF THE CHAMBER FLOOR OR AND
GALLERY. SEEING NONE OTHER ANY
WITNESSES IN OPPOSITION IN THE
BACK OF THE CHAMBER FLOOR OR IN
THE GALLERY. SEEING NONE OTHER
ANY WITNESSES IN SUPPORT AT THE
REMOTE TESTIMONY STATION.
HEARING OF NINE ARE THERE ANY
WITNESSES IN OPPOSITION OF THE
REMOTE TESTIMONY STATION. AND
HEARING THAT AS WELL MODERATOR
OTHER ANY WITNESSES IN SUPPORT
ON THE PHONE OR IN Q. THANK YOU
MISTER CHAIR AND LADIES AND
GENTLEMEN IF YOU WISH TO SPEAK
IN SUPPORT OF AB ELEVEN SEVENTY
SEVEN YOU MAY PRESS ONE. AND
THEN ZERO AT THIS TIME. ONE
MOMENT- FIRST COMMON. AND MAY
MADE HEADLINES WHEN THEY DID IT
MAY I PLEASE JUST YOUR NAME OF
THE- AND PER. THANK YOU MISTER
CHAIR AND NINE ONE HUNDRED AND
SIX YOUR LINE IS OPEN PLEASE GO
AHEAD. HI CAN YOU HEAR ME. YEAH
CAN YOU HEAR ME. YES THEY CAN.
YEAH HI I'M MY NAME IS JENNIFER
TANNER- AND SPEAKING ON BEHALF
OF ALL EIGHTY ONE OF
INDIVISIBLE STATE STRONG WITH
ARE IN STRONG AT. THANK YOU.
NINE ONE HUNDRED AND TWELVE
DEADLINE IS OPEN PLEASE GO
AHEAD. HELLO JENNIFER MY ONLY
WITH THE CALIFORNIA LABOR
FEDERATION IN STRONG SUPPORT OF
AB ELEVENTH SEVEN THANK YOU.
NINE ONE HUNDRED AND FOUR. YOUR
LINE IS OPEN PLEASE GO AHEAD. A
MIXTURE MEMBERS BUSINESS MAX
PERRY SPEAKING ON BEHALF OF THE
CITY OF LONG BEACH AND THEY'RE
OFTEN SUPPORT THANK YOU. ONE
HUNDRED AND SEVEN YOUR LINE IS
OPEN. PLEASE GO AHEAD. HI WHAT
ABOUT COVER WOULD BE ALIGNED
WITH CALIFORNIANS DEPARTMENT
SUPPORT ELEVENTH AND. SEVEN
NINE ONE HUNDRED AND FOURTEEN
YOUR LINE IS OPEN PLEASE GO
AHEAD. THIS IS KIRSTY MORAL WAS
TOGETHER WITH WELL INDIVISIBLE
THE SCOTTISH IN STRONG SUPPORT
OF AB ELEVEN SEVENTY SEVEN
THANK YOU. NINE ONE HUNDRED AND
SIXTEEN YOUR LINE IS OPEN
PLEASE GO AHEAD. THIS IS
DARLENE PATRICK REPRESENTING
INDIVISIBLE STANISLAUS CALLING
FOR STRONG SUPPORT FOR A BI
ELEVEN SEVENTY SEVEN THANK YOU.
NINE ONE HUNDRED AND FIFTEEN
YOUR LINE IS OPEN PLEASE GO
AHEAD. HELLO INDIVISIBLE
CALIFORNIA'S STATEWIDE AND
INDIVISIBLE SEVEN O'CLOCK FOUR
EIGHT THANK YOU. MY HUNG. YOUR
LINE IS A PLEASE GO AHEAD. DAN
GUTIERREZ BEHALF OF A
FEDERATION OF POWER INTO. MY
NINETY NINE YOUR LINE IS OPEN
PLEASE GO AHEAD. GOOD AFTERNOON
CHAIR NUMBERS DANIELLE CANTO
CHRYSLER ON BEHALF OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION IN SUPPORT. ONE
MOMENT WE HAVE ONE OTHER LINE
NUMBER IN SUPPORT. WE'RE JUST
GATHERING THE LINE NUMBER ONE
MOMENT PLEASE. NINE EIGHTY SIX
YOUR LINE IS OPEN PLEASE GO
AHEAD. GOOD AFTERNOON THIS IS
TO SHEILA JACOB WITH THE
LAWYERS COMMITTEE FOR CIVIL
RIGHTS OF THE SAN FRANCISCO BAY
AREA WE ARE CALLING BE STRONG
SUPPORT. NINE ONE HUNDRED AND
TEN I'M SORRY DAY REMOVE
THEMSELVES FROM Q. AT NINE ONE
HUNDRED AND TEN YOUR LINE IS
OPEN PLEASE GO AHEAD AND GET
THAT GOOD AFTERNOON CHAIR AND
MEMBERS MY NAME IS TRINITY. AT
EVERY FOR THE COMMITTEES CON OF
SUPPORTERS FROM ALL ONE SEVENTY
POINT TOWARDS MARKET CALL
CHOOSE POINT THE PART FOR
ELEVEN FOR SEVEN I'M CALLING ON
BEHALF OF THE K. PUBLIC BANKING
ALLIANCE AND BILL ENDORSERS
INCLUDE S. ARE YOU CAN. CAL
REINVENTS COALITION U. S. B. W.
WEBSTER STATES NEXT CALIFORNIA
LAYING IN EACH ACT BAKER
CALIFORNIA LABOR FOR. CENTER
FOR FARMWORKER FAMILIES COURAGE
INTO CALIFORNIA'S STRONG WHAT
COUNTY DEMOCRAT PARTY INDIA
ECHO COUNTY PARTY FACT FIFTY AT
THE ARE YOU INTERNET AND
WORKING PARTNERSHIP USA A. FROM.
ONE AND SEVEN LOCAL STATEWIDE
AND NATIONAL INTEREST IN
ORGANIZATIONS WE STRONGLY URGE
THE COMMITTEE TO VOTE ON AB A
LOT OF SEVEN CALIFORNIA PUBLIC
BANKING. OPTIONS ACT THANK YOU.
WE HAVE NO FURTHER COMMENT IN
Q. INTO OF AB HELLO SEVENTY
SEVEN. THANK YOU ARE THERE ANY
WITNESS IN OPPOSITION ON THE
PHONE OR IN THE QUEUE. THANK
YOU MISTER CHAIR AND LADIES AND
GENTLEMEN IF YOU WISH TO SPEAK
IN OPPOSITION OF AB ELEVEN
SEVENTY SEVEN. YOU MAY PRESS
ONE AND THEN ZERO AT THIS TIME.
AND JUST REMIND YOUR NAME
AFFILIATION AND POSITIONALLY.
ONE MOMENT VERY FIRST COME.
NINE SEVENTY ONE YOUR LINE IS
OPEN PLEASE GO AHEAD. THANK YOU
AND GOOD AFTERNOON COMMITTEE
TERRY NUMBER OF THE IS GOING TO
BE GOING ON THE AFRICAN
COMMUNITY BANKING NETWORK AND
WE LOOK FORWARD TO REVIEWING
AND THEN LIKE THAT WE ARE
BECAUSE TODAY THANK YOU. MY ONE
HUNDRED AND FIVE YOUR LINE IS
OPEN PLEASE GO AHEAD. GOOD
AFTERNOON JUSTIN HIRE WORKERS
SILICON VALLEY LEADERSHIP GROUP
WE ARE OPPOSED AT THIS TIME
THANK YOU. LINE ONE HUNDRED AND
NINE. YOUR LINE IS OPEN PRIMERO
HAS. BALLERINA FOR THE
CALIFORNIA CHAMBER OF COMMERCE
WE ARE IN OPPOSITION TO THE
ELEVENTH. SEVEN AND AT THIS
TIME WE HAVE NO FURTHER COMMENT
IN THE OPPOSITION TO. MODERATOR
ARE THERE ANY OTHER- WITNESSES
IN OPPOSITION ON THE PHONE OR
IN THE QUEUE. WE HAVE NO
FURTHER COMMENT IN THE
OPPOSITION Q. OKAY. ALL RIGHT
FOR WE WILL NOT BRING THIS BACK
TO THE COMMITTEE- FOR QUESTIONS
AND COMMENTS WE WILL BEGIN WITH
VICE CHAIR CHEN- THANK YOU
MISTER CHAIR ON I WANT TO
THANK. ASSEMBLY MEMBER
SANTIAGO- FOR HIS DILIGENCE-
BUT ALSO APPRECIATE THE INTENT
OF THE BILL. TO BRING FINANCIAL
EQUITY TO OUR UNDERSERVED
COMMUNITIES. SPECIFICALLY ARE
COMMITTEES AND A BROWN
AND WHITE COMMUNITY. WITH THAT
SAID THOUGH- THERE ARE EXACTLY
TWO OR EIGHTY NINE CREDIT
UNIONS IN THE STATE OF
CALIFORNIA. AND A VAST MAJORITY
OF THESE CREDIT UNIONS OFFER
CHECKING ACCOUNTS. WITH NO FEES.
AND A SECOND CHANCE
OPPORTUNITIES. AND OF THESE TWO
EIGHTY NINE INSTITUTION THERE
HOW THIS CAL CREDIT UNIONS THAT
HAVE A LOW INCOME DESIGNATION.
AND TWENTY TWO OUR COMMUNITY
DEVELOPMENT FINANCIAL
INSTITUTIONS ARE BETTER KNOWN
AS CDF FILES. THESE ARE THE
NATION'S INDICATE A MAJORITY OF
OUR MEMBERS MEET AT LOW INCOME
THRESHOLD. AND THAT THE CREDIT
UNION PROVIDES FINANCIAL
SERVICES TO UNDERSERVED AS SAID
BEFORE LOW INCOME COMMUNITIES.
SO WITH THAT SAID DO YOU
BELIEVE THAT BASED ON THIS BILL
THAT THE POLICY STATED FOURTH
IS DUPLICATIVE INDICTED FOR
CREATING ANOTHER LAYER OF
BUREAUCRACY WHEN THERE IS
SOMETHING IN PLACE ALREADY.
FOUR AS I BELIEVE THE TARGET
AUDIENCE. THAT YOU'RE TRYING TO
GET ACCESS TO- THE COMMISSION
VICE CHAIR FOR THE QUESTION AND
LOOK I DO WITH. THE GREAT WORK
THE CREDIT YOU COMMUTE BANKS
ARE DOING AND I SAID THAT
PROBABLY WILL CONTINUE TO SAY
THAT- THE FACT REMAINS THAT
THERE IS AN UNDERBANKED AND
UNBANKED POPULATION DOES NOT BE
REACHED AND THAT IS THE
POPULATION THAT WE ARE TRYING
TO REACH- AND- SO RESPECTFULLY
I WOULD SAY THAT WE- NEED. A
BANK CAL. IT GIVES US THE
ABILITY TO READ STOP POPULATION
THAT HAS NOT BEEN REACHED. WE
HAVEN'T THOUGHT ABOUT EXPANDING
WHAT IS CURRENTLY IN PLACE- IN
THE EFFORT TO REACH- YOUR YOUR-
DESIRED TARGET AUDIENCE. WELL
LET'S JUST. MAKE MATTERS
MONSTER. CHECK THE IS- ONE
APPROACH TO- THE OF THE THOSE
WERE. OR UNDER. SO IN THIS
CURRENT BILL FORMAT IS I
UNDERSTAND- BUT YOU SAID YOU
WANT TO BRING THE UNBANKED
INDIVIDUALS- TO- OUR CURRENT-
FINANCIAL INSTITUTIONS. WELL AS
ALTERNATIVE BANKS SUCH AS
ALTERNATIVE UNIONS BUT THEIR
DEPOSITS ARE STILL GOING TO
TRADITIONAL BANKS AND THEY
WON'T ACTUALLY BANK AT BANK CAL
RIGHT- THEY'RE GOING TO BE
UTILIZING FOR CURRENT FINANCIAL
INSTITUTIONS SO HOUSES BEING
QUOTED AS A PUBLIC BANK. WELL I
CAN TELL YOU WHAT IS RIGHT IN
WE'RE CALLING IT UP BANK OPTION
NOW. IT IS THERE IS A- AS I'VE
DISCUSSED IN THAT. COULD BE A
WEB BASED IS BUT WHAT THEY
TREBLE BAY WE'RE INDIVIDUAL-
CAN DEPOSIT- THEIR MONEY'S- IT
WILL HAVE TO PARTNER UP WITH
FINANCE IS- TO QUOTE UNQUOTE
WORK THOSE DOLLARS- BUT ALSO
REMIND YOU- THAT. THANK THANKS
TO THE CHAIR AND THEIR HARD
WORK THEY'VE ALLOWED US TO
CRAFT LANGUAGE- IN A MARKET OR
AND A MARKET STUDY- THAT WOULD
DETERMINE- THE FEASIBILITY OF
THIS PRODUCT IN IF THIS
PRODUCT- IS SOUND PUBLIC POLICY
THE LEGISLATURE WOULD HAVE THAT
OPPORTUNITY TO RATIFY IT SO-
IS. SO WE'RE CONFIDENT- THAT
THAT STUDY IN THE LEGISLATURE
DESIRE TO MOVE FORWARD OR NOT
MOVE FORWARD- WITH THAT- WILL
CREATE THIS- BANK SO THERE ARE
ALSO- THOSE. SAFEGUARDS IN
PLACE. THIS THIS IS THE YOUR
SAYING THE ONE AS WE COME BACK
IN TWENTY TWO THREE. AND BASED
ON THAT WILL STILL COME BY TO.
THIS POLICY COMMITTEE- FOR
PROVOKE I. THAT THE CAN. THAT
WE HAVE HERE ARE STEVE CHAIR-
HOW OF NEXT. IN BANKING FINANCE
SERVICES. SO PERSONALLY I WOULD
LIKE TO SEE A THROUGH THESE
ACTS- AS OPPOSED TO IT. IT
BECOMING A BUDGET BILL. WELL IT
WILL COME BACK TO LEGISLATE. I
CANNOT DETERMINE THE AMOUNT OF
TIME I GET EXAMPLE IF MEMORY
SERVES ME WELL- CAL SAVERS WAS
MADE OF THE KING'S ABOUT FOUR
YEARS BEFORE I CAME BACK AND IF
I'M MISTAKEN ON THE AMOUNT OF
TIME THEN THE STRUCTURE YOU
CORRECTLY. THE BEST OF THE BEST
OF MY- I BELIEVE THIS YEARS
BEFORE IT CAME BACK- LOOK I'M
OPEN TO DISCUSSIONS- ABOUT
WHICH WAY IS THE BEST A BEST
PARTICULAR APPROACH- IN.
PARTICULAR QUESTION. I
APPRECIATE THAT- IF I MAY- CHEN
JUST. INTERRUPT HERE TO FOR MOM.
IT IS THE INTENT OF THE CA.
THAT THE FEASIBLE STUDY DOES
RETURN BACK TO THE LEGISLATURE.
AND SPECIFICALLY TO THIS
COMMITTEE. WE CAN QUALIFY THAT
IN THE LANGUAGES IT'S GOING
FOR. THAT- THE OFFICE BEEN VERY
WELL WORKABLE WITH THIS. AND
WE'RE- IT IS OUR INTENT IF I
UNDERSTAND IT. THAT THE ALLEGED.
WILL PRODUCING LANGUAGE- FOR
THE AMENDMENT THAT DOES BECAUSE
THE BILL OR THE STUDY TO RETURN
BACK TO THE LEGISLATURE. THAT
SPECIFIC TO THE BANKING FINANCE
COMMITTEE. FOR SOMEBODY. THANK
YOU MISTER CHAIR I APPRECIATE
THAT- AND AS YOU STATED- THE
SUMMER SANTIAGO. THAT WE NEED
TO HAVE THESE FINANCIAL.
INSTITUTIONS TO PARTICIPATE. IN
A BANK CAL- ARE THERE
INCENTIVES FOR THE FINANCIAL
SUIT IS USED IT TO ME THE
INSTITUTIONS TO PARTICIPATE IN
BANK CAL- TO MAKE THIS.
SUCCESSFUL YEAH I MEAN WHEN YOU
PROCURE- LOOK LET'S OUR OFFICE
WHAT. YES THERE IS- BECAUSE IF
YOU PAY IT WHEN THE PROCUREMENT
GOES OUT THAT WILL BE TURNED
DETERMINED BY STATE- THEY WILL
BE- REVENUE TO BE HAD. BY OUR
FINANCIALS THE TO SAYS APART OR
OTHERWISE THERE'S NO INCENTIVE
FOR THEM TO DO IT RIGHT. BUT
YOU KNOW I POINT TO THE MARKET
ANALYSIS BECAUSE THE MARKET
ANALYSIS REALLY TELL US- WITH
THAT. WHICH WERE ARGUING- IS
TRUE OR NOT I BELIEVE IT IS.
THE FOR THE FAIRNESS OF THE FOR
THE FAIRNESS O POLICY
ARGUMENTS. THAT WILL INDICATE
TO US- WHETHER IT DOES-
FISCALLY PENCIL OUT WHICH BILLY
IT DOES- IN BASED ON THAT THE
LEGISLATURE. THAT FROM TO MOVE.
OR NOT- A- HAVE. THAT QUESTION.
THEN YES- THEY'LL BE A- THEY'LL
BE THE OF THE- OF FOR FINANCE.
IS. TO- TWO IN OUR REVENUE TO
THAT WAY. THANK THANK YOU FOR
YOUR AND AS I STATE EARLIER AND
MY- IS THE OF HAVING FOR IS A
PARTICIPATE IN ADDITION TO
THOSE AND SO. I KNOW THAT IN
BILL RIGHT NOW- ONE OF MAIN
COME IS A STELLAR NINE. PUBLIC
BANKING ON FOR INCLUDES BY
MEMBERS FROM THE STATE
TREASURER. OF THE COMMISSION OF
THE DEPARTMENT OF FINANCIAL.
AND INNOVATION IT'S ALSO GOING
TO BE STAFF OR EMPLOYEES OF THE
STATE TREASURER'S OFFICE SINCE
THE FINANCIAL SOLUTIONS ARE SO
CRITICAL IN THIS BILL HAS THERE
BEEN THOUGHT OF EXPANDING THIS
NINE MEMBER BOARD TO ADD
FINANCIAL INSTITUTIONS THE
INSTITUTIONS WOULD BE CREDIT
UNIONS OR FINANCIAL BANKING
SYSTEMS- THAT WILL BE
INSTRUMENTAL TO MAKING. SURE
THAT THIS BILL IS SUCCESSFUL.
WELL I'M OPEN TO HAVE X. ON
HERE- I'M NOT GONNA MAKE YOU
KNOW KNOCKED ON HOW TO TALK TO
YOU ABOUT THIS NOW BUT I'M NOT
GONNA INCLUDE- ANY AMENDMENTS
OR OR COMMITMENTS OUTSIDE OF
WORK- THE CHAIR HAS PROPOSED-
IS SIMPLY BECAUSE WE'VE- WORKED
ON THIS FOR ABOUT TWO MONTHS.
AND I WANTED A I WANT TO BE
RESPECTFUL TO WE'VE AGREED ON.
ARM I DO ANOTHER- BUT I ALSO
WOULD LIKE TO. ADD CERTAINLY I
THINK HAVING FINANCIAL
INSTITUTIONS PART OF THAT
COMMITTEE PART OF OUR BORDERS
IS CREDIBLE. AND I WOULD-
INDULGE AND ADDS TO THE CHAIR
OF THERE'S A POSSIBILITY. OF
ADDING THIS AMENDMENT- TO THIS
BILL- AFTER. OVER MISTER CHAIR-
MY LAST I WANT TO MAKE SURE
THERE'S AN TIME FOR A OTHER
COME MEMBERS HOW IS GOING TO.
ENTER WITH THEIR K. BAG SERVICE.
I'M SORRY ORE TIME I ABOUT
THAT WITH THIS PROGRAM WITH CAN.
YOU CAN- BANKING. A WORD BUT
NOTHING IN THE BILL SAYS A CAN
RECEIVE CANNABIS. TO HERE'S ONE
OF THE CLARIFYING THANK YOU
VERY MUCH. NEXT DR CHOI. IF YOU
CHAIR AND ON SO- LET'S MEMBER
SAID- STATE TALK- BE RETURNED
ON BUT- I A TIME. ARE INTENT
IS- CREATE. A PUBLIC BANK. SIR
THAT- WILL MAKE UP. BANKS HE
ACCESS OF. SO CALLED UNBANKED
THE POPULATION SO- KNOWING
PAPER OF WHATEVER REASON SO
DURATION ARE CURRENT THANKS. OF
IS NOT MEET THE NEED. THIS IN
TURN THERE IS A GOOD. HOW WELL
HOWEVER. ONCE WE CREATE SUCH A
PUBLIC BANKING SYSTEM. A
READING SOME OF THE ANALYSIS- I
AGREED TO. LIKE A NEXT A SIX
YEARS. ALL THE COST WOULD BE-
ONE BY THE STATE. AND THEN I
CAN PREDICT. THE. ALSO THE-
MORE THAN THE REVENUE. AND THE
ORDER BE UNDETERMINED AMOUNT
OF- PUBLIC DOLLARS PUBLIC TAX
DOLLARS TO SUPPORT THIS SYSTEM.
AND I ONE DAY FOR ANYBODY HAS
OF. ESTIMATED THAT A QUARTER
FIGURE. HOW MUCH HE REVENUE LOS
WILL BE ANTICIPATED. I WONDER
WHATEVER THAT THE AMOUNT THAT
MAY BE. IF WE CAN- IDEA IS THAT
THE- CURRENT BANKING SYSTEM.
DURATION ARE BANKS OR CREDIT
UNIONS. WOULD BE INCENTIVIZED
FOR THEM TO CREATE THE SPECIAL.
OUR GRAHAM. FOR LOWER INCOME
CATEGORY PEOPLE. TO PROVIDE
SUCH AS A. HE A BILL INTENDED
TO. IT'LL BE. VOLUNTARY THIS IS
ALL OF NINETEEN SOLVE ON TORY.
ZERO THREE ZERO PENALTY. OKAY I
KNOW MOST OF THE BANKS THEY
HAVE A CERTAIN CONDITIONS SO IF
YOU DON'T MEET THAT THE SUDDEN
BALANCE ARE DONE I SHALL PAY A
CIVIL PENALTY. BUT THE IF TESSA.
OVERDRAFT AMOUNT- OVER DRUG
OVERDOSE THE CHECK ITSELF
DIRECTED AND UP LOSS INCURRED.
AND ARE WE NOT. IS THAT
ENCOURAGING THEM PICKED TO DO
CONTINUE TO DO SO I THEN THAT
THE LOSS OR THE PAID FOR BY.
THE TAX. AND IF WE ARE
DETERMINED. HOW CAN WE.
INCENTIVIZE A TRADITIONAL BANK
SO TO PROVIDE THE SPECIAL
PROGRAM. AND WHAT THE NORMAL
NORMAL YOUR COST- TO ACCOUNT.
FOUR MMHM I DON'T KNOW ZERO
PENALTY THAT BOTHERS ME A LOT-
THIS IS A CREATES A S. ON OCT
ENCOURAGEMENT OF OUR- ABUSING
OFFICE OUR SYSTEM. IN THE IT
CAN BE. A REASONABLE PROGRAM
CANDY ARE CREATED BY
TRADITIONAL BANKS OR CREATE
UNION. AND ARE THEY OWN
AWFUL. THANK BUILDING CENTER OR
THE VERY TO SERVE THAT OR CALL
TO HER OR NOT THE MAN. OUR
MONEY THANK HOLD YOU BACK. AND
OWNS THE- BUILDING LEASES AND
UP TO HOW ARE YOU ARE NOT
SOMEBODY HAS TO PROVIDE. I'M A
CIVIL. BEING UP BANK THAT THEY
HAVE NO SO WHETHER THEY THE NOT
OUT THERE TO MAKE MY- YEAH GET
TO SERVE PEOPLE. AT THE ZERO
COST POWER. SO ARE- IN BANKER
BANK EMPLOYEES HAVE KNOWN AS IT
ODDLY MAKE MY OR LOSE. SO IT IS
OUR- IN A PROJECT TO LOSE. THE
MY- SO IT OTHER WORDS A WE ARE
TODAY INTO THE STATE GOVERNMENT
THERE'S A ENTERING. PEOPLE WHO
NEED. ALL BECAUSE SEVERAL
RETAILER A PROFITABLE RETAIL
AREAS ARE AND TO COMPETE THE
WITH THE GOVERNMENT WITH A TAX
MONEY. AND- ALL WITH THE PER
THE ALREADY IN CAPITAL TO
SYSTEM DOUBLE WITH IN. AND WE
ARE TRYING TO COME THE ON. WITH
A IS THE ARE ALL OF IS TO. SO.
EVEN THOUGH I UNDERSTAND THE
ORIGIN INTENT OF IT THE HOWEVER
THERE SHOULD BE SOME BETTER WAY
TO SERVE THE UNDERSERVED THE
UNBANKED PEOPLE. SHOLA I DON'T
KNOW WHETHER THIS BE A LAW IF
IT PASSES WHICH ARE I DON'T
THINK A AGAIN SUPPORT AT THIS
TIME. IF IT. DOES PASSED SO BY
THE DAY THIS WILL ALLOW TO
CREATE OR THE NINETY NINE
MEMBER BOARD MEMBERS OR DO FITS
TEST THIRTY ALONE. WHICH WATERS
DID. LAY BASS UPON THE PHYS
VERITEST RYSZARD OF THAT THIS
TO ASK ON. THE COMMERCIALLY
STUBBORNNESS MEANT THANKS FOR
THE INPUT THE ONE. UNLIKELY
THEY CAN. THANK YOU. THANK YOU
DR ASSEMBLY MEMBER. FOR HE I
DON'T KNOW WHO I DIDN'T WITH A
QUESTION. FOR THOSE A BUNCH OF
ONE OF RUSSIAN IN BETTER THERE
THANK YOU ASSEMBLY MEMBER BURKE-
THIS IS ON THE DE WOULD YOU
LIKE TO RECEIVE YOUR THAT THERE
WAS A NUMBER OF COURSE AND I'M
DO MY TO TRY TO GET TO THE-
OKAY IF I MAY ONE MEAL- IT BY
THOSE SIX OR SO OR EIGHT OF
THEM IN THERE- NOT NOT NOT ONE-
THIS IS INTENT. TO HAVE NO NO
FEES THAT'S THE WHOLE OF IT
THAT'S WHAT WE OUT OF THE- I
DON'T AGREE- WHAT DID WITH
THESE FOR LAW FIVE IF I UNDER
CRIED THAT THERE SHOULD BE PAN.
PERSON BEHAVE ASSEMBLY YOU KNOW
IT IN THE CASE ORANGE THE USE
ABOUT- DID JUST DON'T DON'T
MOVE MY FROM ONE ACCOUNT TO THE
OTHER DON'T CHARGE THIRTY FIVE
OH I MEAN OR WHATEVER PANEL.
FOR ALL DRAFT EITHER IT SO WE
JUST I THINK THERE'S A
PHENOMENAL IN THE WAY WE VIEW
THE- BECAUSE THAT'S WHAT AGE
DOES TO YOU. YEAH THERE'S A
NUMBER OF THINGS OF THE MARKET
ANALYSIS- WE'LL TAKE A LOOK AT-
THE NUMBER OF POTENTIAL ACCOUNT
HOLDERS- THE AVAILABILITY OF
QUALIFIED PARTICIPANT FINANCIAL
INSTITUTIONS. POTENTIAL ACCOUNT
HOLDERS- COMFORT WITH- VARIOUS
BANKING PRODUCTS HOW
INDIVIDUALS WITH FEDERAL FIGHT
WITHOUT FEDERAL OR STATE VOTER
IDENTIFICATION TO PARTICIPATE-
POTENTIAL PROGRAM REVENUE
STREAMS- THE PRESENCE OF
PRIVATE SECTOR OR NONPROFIT-
COMPETITORS TO THE PROGRAM- THE
FISCAL RISK- FROM THE PROGRAM-
DURING ECONOMIC DOWNTURNS. AND
OTHER FACTORS THAT TO DO THAT
THAT ARE DEEMED RELEVANT ALL
THESE AND OTHERS ARE GEARED
TOWARDS- ASKING THE QUESTION IS
THIS FEASIBLE OR NOT- IF THE-
IF THE MARKET IN. TO TURN THAT
IT IS FEES. I THINK A LOT OF
QUESTIONS THAT MAY HAVE BEEN
RAISED- DURING YOUR COMMENTS
AND QUESTIONS- WOULD BE ADDRESS
MEANING IT IS SOUND FISCAL
POLICY NOT IF IT IS NOT. IF IT
IS NOT THE MARKET ANALYSIS
WOULD ALSO TELL US THAT IT'S
NOT. HAVING SAID THAT ONCE THE
MARKET ANALYSIS IS DONE. IT
WOULD COME BEFORE THE
LEGISLATURE IN THE LEGISLATURE
HAS THE ULTIMATE AUTHORITY TO
PROCEED OR NOT PROCEED- YOU
MENTION THEM- ALL THE FOLKS OF
THIS. I THINK ADDRESSES A LOT
OF THE LIABILITY QUESTIONS A TO
BEGIN WITH AND THEN ALLEGEDLY
AGAIN HAS THE ABILITY APPLYING.
TO MOVE FORWARD OR NOT. NOW
HAVING SAID THAT. YOU KNOW THE
DATE THERE IS PRETTY IN THIS
THAT WE WRITTEN- WOULD BRING
ABOUT THE FINANCIAL
RESPONSIBILITY MEANING
LIABILITY. TO THOSE FINANCIAL
INSTITUTIONS UPPER CARE- ED IN
WE WORKED EXTREMELY HARD TO GET
THERE I WANT TO THANK THE CHAIR
AGAIN FOR HELPING US TO INSERT
THAT IN THERE WHICH WAS.
INCREDIBLE WORK AND I'M ALMOST
OUT SAYING THAT- IN THE OTHER
PIECE OF IT TOO IS. I YOU KNOW
IT YOU WE WOULD HAVE TO COME
BACK. IF THERE IF THERE IS A
COST IN THE WILL BE HIS NEXT TO
ME COULD BE BETWEEN THREE TO
FIVE MILLION TO SET UP I'M NOT
GONNA HIDE THE BALL- BUT WE
WOULD HAVE TO MAKE THOSE
ARGUMENTS BEFORE A BUDGET
COMMITTEE- AND- WE WOULD HAVE
TO BE BACKED. BY DATA MEANING
FEASIBILITY. MARKET ANALYSIS
THAT THIS IS ACTUALLY SOUND. SO
THIS IS NOT A FREE CHECK TO GO
DO ANYTHING. THIS IS A. WASTE A
SERIES AS- ALL THE- TO. ENSURE
THAT WE PER- THESE SERVICES-
PEOPLE- WITHOUT PENALTIES
WITHOUT FEES XCERRA EVEN THOUGH
WE MAY HAVE TO DISAGREE ON
THAT- BUT- INSURING THAT IT
THERE IS THAT THAT IN IS
FISCALLY SOUND IS NOT MY
INTEREST. NOR THE LEGISLATURE'S
INTEREST TO PROCEED FORWARD
WITH ANY PRODUCT THAT IS GOING
TO CAUSE A LIABILITY- BECAUSE
WE ARE WE ARE STEWARDS OF THE
PUBLIC DOLLAR AND NUMBER TWO-
WE WANTED TO WORK TO GIVE THAT
PRODUCT THAT THAT WE ARE TRYING
TO ACHIEVE. WITH THIS BILL- AND
WHICH IS WHY THERE ARE MANY
SAFEGUARDS IN THEIR. THANK YOU
AND WE WILL NOW GO TO
ASSEMBLYMEMBER BURKE FOR
QUESTIONS. FIRST I WANT TO
THINK- THE AUTHOR I KNOW THAT
YOU HAVE ENTERED AN ENDING
QUESTIONS FOR THE LAST FEW DAYS
AND- FOR ME AND OTHER COMMITTEE
MEMBERS AND I WANT TO THANK YOU
I ALSO WANT TO THANK THE CHAIR
FOR- BEING VERY RESPONSIVE TO
THE- TO MY CONCERNS I DON'T
SPEAK FOR ANYBODY ELSE BUT I
APPRECIATE THAT. AND I JUST I
WANNA MAKE SURE EXPRESS MADE.
OPINION ON IS THEY DON'T HAVE A
PHILOSOPHICAL ISSUE OR CONCERN
WITH THE IDEA OF A PUBLIC BANK
AND I WOULD LOVE THERE TO BE A
PLACE WHERE PEOPLE CAN CASH
THEIR CHECKS WITH AT NO COST
AND ALL THE OTHER THREE THINGS
THAT WOULD COME UP WITH. A
SERVICE LIKE THAT HOWEVER. I AM
CAN. ABOUT USING HARD WORKING
PEOPLES FUNDS TO SEE THAT A
PUBLIC BANK AND I UNDERSTAND A
TRADITIONAL BANK WILL BE THE
FACILITY QUOTED TWELVE
FACILITATOR OF. YOU KNOW
TRANSACTIONS BUT AT THE END OF
THE DAY. MY UNDERSTANDING IS
THERE A IS THE GOAL IS THAT THE
DEPOSITORY BE A PUBLIC OR
SEVERAL PUBLIC BANKS AND I KNOW
THAT WE PUT IN PROCESS IN THE
LAST FEW YEARS- VERY STRINGENT
GOD LET GUIDELINES ON CREATING
THOSE PUBLIC BANKS BUT I. MY
UNDERSTANDING IS THIS MONEY
WOULD PROBABLY THE DEPOSITORY
MONEY WOULD BE USED TOWARDS.
THAT PROCESS AND SO I JUST
WANNA. MAKE SURE IT'S ON THE
TABLE THAT I HAVE GREAT CONCERN
ABOUT THAT- SO I JUST. SO THE
SAFEGUARDS ARE IMPORTANT TO ME.
AND TO BE ABLE TO VOTE FOR THIS
BILL SO FIRST I THINK YOU FOR
BEING WILLING TO TAKE. THE
AMENDMENT HAT ACTUALLY
ANALYZES WHAT EVEN IF THE
REPORT SYS. YES THIS LOOKS
LIKE IT COULD WORK WE ALL KNOW
AND ANY OF US WHO ARE IN THE
FINANCIAL INDUSTRY DURING THE
CRASH NO THAT. THING SOMETIMES
DON'T WORK EVEN WHEN WE THINK
THEY WILL BE ON. THE STATE WILL
HAVE A CERTAIN LEVEL OF
FIDUCIARY RESPONSIBILITY AND
THAT THAT HAS BEEN ANALYZED IN
ADVANCE I THINK IS VERY VERY
IMPORTANT SO I APPRECIATE. YOU
BILLING WILLING TO TAKE THAT. I
ALSO APPRECIATE THE CHERISH
CLARIFICATION THAT THE BILL
WILL NOT JUST COME BACK TO THE
LEGISLATURE BUT WE'LL COME BACK
TO BOTH. OF THAT BOTH THE
SENATE AND THE ASSEMBLY BANKING
COMMITTEES FOR A FULL REVIEW
AND APPROVAL I THINK THAT'S
INCREDIBLY IMPORTANT I THINK
IT'S- AS MY COLLEAGUE SAID IT'S
IMPORTANT THAT IT'S NOT. YET
SLID INTO A TROUBLE BUT
PROPERLY ANALYZED BY THOSE WHO
ARE EXPERTS IN ANALYZING. THE
SORT OF THINGS. I SAY IT ONE
LAST AND THAT IS TO THE BOARD I.
HADN'T EVEN THOUGHT ABOUT THE
BOARD MEMBERS INSTILL. INTO
CONVERSATION LAST NIGHT. AND
UNDERSTANDING THAT. THE
DEPOSITORY IS NOT ACTUALLY A
TRADITIONAL BANK AND THIS BOARD
WOULD ACTUALLY BE RUNNING A
FINANCIAL INSTITUTION. IT IS
CONCERNING TO ME. THAT THERE IS
NOT. A CERTAIN THRESHOLD OF
FINANCIAL EXPERTS ON THAT BOARD
ESPECIALLY. SINCE THE STATE
REALLY. AT SOME LEVEL BE.
BEYOND THE FTA. AND SO I KNOW
YOU DO WANT THE WHOLE BOARD TO
BE AND I UNDERSTAND THAT TO BE
FINANCED EXPERTS I DON'T EITHER
I THINK THAT THERE. GREAT BY.
IN A TO. OF FIRST. ON BOARD-
AND IT IS THE- POINT BUT I
WANNA. COMMIT THAT THAT I AM
VERY CONCERNED. IT AND THAT
THAT IT SHOULD NEED A FRESH. ON
THIS IS A HUGE. BILLION
STOPPING. WORKING PEOPLE TO DO.
DON'T YOU ARE HARD EARNED
DOLLARS TO SEE THIS. OF
RESPONSE. AND SO. HAVING PEOPLE
ON THAT BOARD THAT REALLY
UNDERSTAND AND CAN REALLY GUIDE
THIS PROCESS I THINK IS VERY
VERY IMPORTANT AND SO. I DON'T.
I'M NOT TRYING TO I DON'T WANT
TO JAM YOU BUT I WANT TO MAKE
IT VERY VERY CLEAR THAT I THINK
THAT THAT IS IT WOULD BE
IRRESPONSIBLE ON SOME LEVEL FOR
US NOT TO HAVE THAT
CONVERSATION AND NOT TO REALLY
PUSH THAT ISSUE A LITTLE BIT
FURTHER. THAN IT'S BEEN
DISCUSSED HERE TODAY BUT OTHER
THAN THAT I APPRECIATE. THE LOW
THE LATE THE DISTANCE YOU COME
IN THE LAST TWENTY FOUR HOURS
BECAUSE IT IS FAR. AND I WANT
THAT TO BE ACKNOWLEDGE AND I
WANTED TO BE APPRECIATED
BECAUSE THEY DO IT I DON'T KNOW
THAT. I COULD HAVE SUPPORTED IT
WITHOUT THOSE SAFE RAIL SO I
APPRECIATE THAT. THANK YOU FOR
YOUR COMMENTS AND WE WILL NOW
GO TO ASSEMBLY. COUNTY BETWEEN.
THANK YOU MISTER AND THAT IF
YOU CAN HEAR ME THIS IS I ALSO
WANT TO COMMEND- THE AUTHOR OR-
THE GOLD OF THE SPELL AND
CERTAINLY. THE GOALS OF THE
SPELL IT DO YOU HAVE A NUMBER
OF QUESTIONS THAT YOU KNOW WE
HAVE HAVE DISCUSSED AND THAT I
YOU WANT TO THE YOU KNOW WITH
WITH WITH ME AS A WHOLE. I'M.
SO I'M JUST GONNA. WITH CAN.
OUT THAT. THE CHEAPEST OFFICER
FOR THE STATE OF. OUR STATE
COMPTROLLER. OPPOSES THIS. AND
THAT GIVES ME SIGNIFICANT
BECAUSE FOR PAUSE I'M IN HER
LETTER ABOUT SHE WRITES THAT
THIS WILL EXPOSE THE TO
EXCESSIVE AND BUT NOW AND LEGAL-
SHE ALSO KNOWS THERE ARE MORE.
LESS RISK AND COST ALTER. THAT
EXIST TO ACCOMPLISH THIS BILLS
BOTH. WHICH I HAVE TO SAY THAN
AS A MIGRATED I'M- SO IT'S LIKE
I SAID SEEING THAT THIS A PO BY
OUR CHIEF OFFICER ME SICKENING
PA. DEDUCTED THAT GIVE YOU
PAUSE DO YOU DID YOU READ THAT
GO GOSH THE- THAT. MAN FROM YES.
I WOULD IT LOOKS THE WEIGHT
WILL HAVE TO GO TO THE CHAIR
NEXT WE DO AND WE- YEAH. SO I
MEAN- IT DOES CONCERN ME WHICH
IS WHY I THINK MARKET RATE-
MARKET. IS BECAUSE IT WILL ALL
TO DID- WHAT OR NOT THIS US
FISCAL. AND LET REVIEW. OF WHAT.
WILL OF BALL WILL DETERMINE ITS
DECISION. OUR AT SEVERAL I
THINK THE AT THE FOLKS WHO
SPOKE ON BEHALF OF THE IN- SOME
OF THE OTHER FOR WHO WAITED IN
ENOUGH. HI HAVE SHARED THE
PERFECT THAT- IF GOAL IS TO AND
THAT YOU KNOW WE REACH ALL AND
BANGKOK ARE IS I THINK OF WILL
SHARE THAT THERE ARE MANY AGAIN
RISKY LESS COSTLY ALTERNATIVES
TO COME THAT GOAL. IT IS YOU
ALL WERE WORKING THIS PURPOSE
HAVE YOU. THE ALTERNATE OF THE
GROUP'S ONE ON ANY AND ALL
ALTERNATIVES BUT I STRONGLY
THAT THIS HELP- IN THAT GOAL.
OKAY AND CAN I ACTUALLY ARE
ANOTHER I DON'T KNOW THE IS RT
MOSCOW MISTER CHAIR COULD YOU
DO YOU ASK FOR A RAISE THE BOY
COMMANDS ABOUT THAT CAN YOU NOT
IT SORRY THANK YOU SORRY MR
CAN'T I'M IN THE IN YOUR
OPENING YOU THIS ISN'T A- CAN
YOU HELP UNDERSTAND THAT COULD
SOMETIMES WE TO THIS IS UP
PAYING YOUR OPEN YOUR YOU MADE
THE POINT THAT IT'S NOT A BANK
SO CAN YOU HELP US CLARIFY THAT.
CORRECT SO BANK WOULD BE THE IS
DO WELL BE IN A THAT DOES- WELL
THAT THE YOU DEPOSIT MONEY IN
THE DOESN'T IN YOU DO ALL THE
RETAIL AND SO FOR- IN THE WAY
WE THIS IN THE WAY WE HAD WROTE
IT YOU HAVE A PLAQUE. THE IS
THE IS THE PUBLIC GOES HAVE A
INTERFACE THE BACKSIDE OF IT
SOURCE WE BE THAT FINANCIAL TO
THAT QUOTE UNQUOTE WORKS ALL
AND THAT WORKS DOLLAR HOLDS OUT
DOLLARS WE'RE NOT IN A IT WAS
OVER NOT A STAB DECREASE OF A
BANG AND- NOT APPLES TO BUT OUR
TWO ONE- BY- CAL SAVERS YOU
EIGHT. WHICH IS WHICH WOULDN'T
HE FINING TO- DOES THE. UNDER
OKAY. OKAY AB. AND THEN LASTLY
BY CAN JUST MAKE SURE IN THIS
WHERE. THEY MEASURE GOT. TO AND
I'M I KNOW WE HAD SOME LATE
AMENDMENTS LAST NIGHT SO I AM
NOT A 100% CLEAR SO WE HAVE THE
FEASIBILITY STUDY I KNOW THERE
IS QUITE A BIT OF DISCUSSION
ABOUT IT COMING BACK TO THE
LEGISLATURE JUST FOR REVIEW OR
IS IT COMING BACK. FOR REVIEW
AND APPROVAL. IS IT COMING BACK
FOR REVIEW AND APPROVAL NOW IS
THAT THE LATEST AMENDMENTS. IT
IS. YES IF YOU DON'T MIND
ALTHOUGH. SO THE ROOF- THE
FEASIBILITY STUDY WILL COME
BACK TO THE LEGISLATURE
SPECIFICALLY AS WAS MENTIONED
TO COMMITTEES. OF FOR NOT ONLY
REVIEW BEFORE RATIFICATION FOR
ABOUT- TO ACCEPT IT IF I
pUNDERSTAND THE LANGUAGE
CORRECTLY. IS RATIFICATION THE
RIGHT WORD. OKAY TO RATIFY TO
VOTE ON IT. AS FAR AS WHETHER
TO MOVE FORWARD WITH THIS. WITH
WHAT THE STUDY RECOMMENDS AND
THEN ALSO TO- THE REASON FOR
BRING IT BACK TO THE
LEGISLATURE AS WELL. IS TO
MAKING THE STATUE CHANGES THAT
MIGHT NEED TO BE MADE BECAUSE
OF THE STUDY- IF IT THE STUDY
FOUND THAT IT WAS GOING TO
WORK. IF THESE THINGS CHANGED.
THEN THE LEGISLATURE THEN HAS
THE ABILITY. AT THAT POINT TO
ACT UPON THE RECOMMENDATIONS.
OF THE STUDY. OR THE OR THE
LEGISLATURE. AND COMMITTEES
COULD REJECT THE STAFF. THANK
YOU FOR RESPONDING AND THANK
YOU FOR CLARIFYING AND MISTER
CHALLENGES ADD TO THAT THAT
THAT. IT WOULD STILL REQUIRE US
IF THERE IF THERE IS THAT- IF
THERE IS A BUNCH OF OPERATIONS
TO GO AFTER I TOOK. THIS BILL
STILL IS JUST ONE STEP IT'LL
TAKE A COUPLE OF A FEW OTHER
STEPS AND IF I REMEMBER
CORRECTLY THE LETTER THAT YOU
WERE YOU WERE REFERRING TO. A
TALK ABOUT THE CREATION OF A
PUBLIC BANK THIS IS NOT THAT.
UNDERSTOOD I THINK. THERE'S
CONFUSION BECAUSE IT'S CALLED.
CAL BANK SO IT'S KIND OF EASY
TO. CALL THE BANK WHEN YOU'RE
TALKING ABOUT IT. AND THAT'S
ALL FOR ME BUT THANK YOU I
APPRECIATE. YOUR ANSWER MY
QUESTIONS AND I APPRECIATE
YOUR- BY. ENGAGEMENT AND
COLLABORATION THROUGHOUT THIS
PROCESS. THANK YOU ASSEMBLY
MEMBER PETRIE-NORRIS AND JUST
TO CLARIFY. WE CAN'T PREDICT
OR- OR SAY WHAT THE LEGISLATURE
IS GOING TO DO. ONCE IT COMES
BACK. SO REALLY IT'S UP TO THE
COMMITTEE AT THAT TIME. AND THE
LEGISLATURE AT THAT TIME TO
DECIDE. WHAT THEY WANT TO DO
WITH IT IT JUST COMES BACK TO
THE- SO DOES THAT MAKE SENSE.
OKAY WITH THAT- SOME REMEMBER
GABRIEL YOU WERE NEXT AND THEN
WE'LL FOLLOW UP WITH- A- SOME
OF OUR CAMP. FIGURE FIRST. OKAY
PLEASE GO AHEAD- THANK YOU
MISTER CHAIR AND I ALSO WANT TO
JUST REITERATE MY GRATITUDE TO
THE AUTHOR- FOR THE GOAL I MEAN
I'VE HAD CALLS WITH THE
OPPOSITION WHERE THEY SAID WELL
IT'S ONLY 5% OF CALIFORNIA
THAT'S ON BANK INTO ME THAT'S
TOO MUCH RIGHT AND SO I THINK
EVEN THOUGH WHETHER THAT
ESTIMATE IS RIGHT OR WRONG
WHOSE NUMBERS ARE RIGHT
WHATEVER POPULATION IN
CALIFORNIA IS UNBANKED OR
UNDERBANKED IS TOO MUCH. AND
YOU'RE REALLY TRYING TO ADDRESS
THAT HERE AND I THINK THAT'S
IMPORTANT AND IT'S A GOAL THAT
I HOPE I THINK MANY OF US HERE
SHARE I ALSO DO WANT TO
REITERATE MY GRATITUDE TO THE
COMMITTEE AND THE COMMITTEE
STAFF FOR THEIR HARD WORK ON
THIS- AND I AM INCREDIBLY
GRATEFUL THAT IT IS GOING TO
COME BACK TO US FOR
RATIFICATION IS YOU SAID IN
YOUR WORDS MR SANTIAGO WE ARE
THE STEWARDS OF THE PUBLIC
DOLLARS. AND NOT THIS BOARD
THAT IS BEING SET UP AND SO IT
IS IMPORTANT THAT WE AS THOSE
STORIES OF THE PEOPLE ACTED BY
THE FORTY MILLION PEOPLE IN
CALIFORNIA MAKE THE ULTIMATE
DETERMINATION OF WHETHER THIS-IS APPROPRIATE OR NOT SO THANK
YOU FOR THAT COMMITMENT. I DO
WANT TO ECHO MY COLLEAGUES SO
YOU KNOW A FEW OF US HERE HAVE
ABOUT EIGHT MORE YEARS NINE
MORE YEARS IN THIS LEGISLATURE
THERE'S A GOOD CHANCE MANY OF
US WILL BE HERE WHEN THIS COMES
BACK AND THE BOARD COMPOSITION
IS SOMETHING THAT'S REALLY
IMPORTANT TO ME AND CURRENTLY
AS I READ IT ONLY ONE MAYBE TWO
OF THESE FOLKS ARE BANKING
EXPERTS ONE HAS A BANKING
EXPERTISE THE OTHER IS A- IT
SAID A- THEY- WORK FOR.
ADVOCATE FOR THE BANKS- SO
MAYBE THAT PERSON WOULD ALSO A
BAKING EXPERTISE AND NINE. AND
WHEN THIS COMES BACK TO THE
LEGISLATURE I THINK IT IS
CRITICAL THAT THE LEGISLATURE
HAS FAITH IN THIS FEASIBILITY
STUDY. AND SO THE COMPOSITION
OF THE BOARD NOT ONLY IS
IMPORTANT TO US HERE TODAY BUT
I BELIEVE IT WILL BE IMPORTANT
FOR LEGISLATORS TO VOTE ON THIS
IN THE FUTURE. AND SO THE
INTEGRITY OF THE STUDY IS
CRITICAL I THINK TO A GOAL
YOU'RE TRYING TO ACHIEVE. AND I
THINK THAT CHANGING THE
COMPOSITION I SUGGESTED BY MANY
MEMBERS HERE. WILL HELP THIS
GOAL. WILL MAKE SURE THAT THE
FEASIBILITY STUDY IS TRUSTED BY
THE FUTURE LEGISLATURE. AND
HOPEFULLY IF IT'S SURE TO BE
FEASIBLE. WILL BE ACTED UPON- I
HAVE A COUPLE OF QUESTIONS ONE
IS. THERE'S BEEN A LOT OF
CONFUSION ABOUT THE DEPOSITORY
I HEARD YOU SAY THAT THE
DEPOSITARY HAD TO BE FDIC
INSURED. THANK YOU RIGHT THE
FINANCIAL INSTITUTION I KNOW
THAT IT THAT IT AYE I USE THE
WORD PARTNER BUT OBVIOUSLY BRAG
HERE. WOULD HAVE TO WOULD HAVE
TO BE FDIC INSURED AND ALL THIS
AND ALL THE- ALL THE SAFEGUARDS
TO ANY. BANK COMMUNITY BANK OR
CREDIT UNION. WOULD HAVE TO
TAKE ON WE WOULD EXPECT.
WHOEVER PARTNERS UP WOULD HAVE
THOSE SAME SORT OF- BUT-
PROTECTIONS AND ABIDE BY RULES.
SO I KNOW THAT THE BILL SAYS
THAT THE INSTITUTION AFTER
FIVE. HAS TO COMPLY WITH ALL
FEDERAL STATE LAWS AND TO ME IT
WAS ACTUALLY NOT CLEAR. WHETHER
THAT MEANT THAT THE INSTITUTION
HAD BE FDIC INSURED AND SO I
THINK THERE'S ROOM IN THE
LANGUAGE TO CLARIFY WHAT YOU'RE
SAYING AND I WOULD APPRECIATE
THAT- I ALSO ASSUME THAT ONE OF
THE OPTIONS FOR THAT
INSTITUTION IS A PUBLIC BANK-
I. MY UNDERSTANDING OF THAT IS
THAT THAT PUBLIC BANK WOULD
HAVE TO GO THROUGH THE PROCESS
WE SET UP IN AB FIFTY SEVEN IN
ORDER TO BE AN OPTION. FOR THE
PARTNER IS THAT YOUR
UNDERSTANDING. HELLO HAVE TO BE
SET UP IT WOULD HAVE TO WORK
BUT- I WANT TO THANK YOU FOR
BRINGING UP THE STATE. AND
FEDERAL WE JUST. THE SOONER WE
SAID FEDERAL IT WOULD CAPTURE
ALL THE DIFFERENT LAWS THAT ARE
UNDER FEDERAL INCLUDING FBI
INSERTED FTI SEE INSURED. AND
WHEN WE MET STATE- I KNOW IT'S
THE D. DEPARTMENT OF BUSINESS
OVERSIGHT STRANGE TO NAME BUT
ALL THAT INCLUDES- THROUGHOUT
THAT PROCESS AS WELL. MANY LAWS
THAT MAY BE IN THE BOOKS OKAY
THANK YOU FOR CLARIFYING THAT
AND SO LASTLY I WANT TO TOUCH
ON THE FEASIBILITY STUDY AND
WHAT IT LOOKS THAT- CURRENTLY
WITH MISS. BURKE'S AMENDMENT
AND OFFENSIVE CALL YOUR MEMBER
OR NOT BUT- IT WAS. THREE
THINGS. RATE WHETHER CAN BE
IMPLEMENTED WHETHER IT CAN PAY
FOR ITSELF WITHIN SIX YEARS AND
THEN WHETHER THERE'S RISK IN A
DOWNTURN. I THINK THAT ACTUALLY
MISSED BETWEEN OUR SORT OF
TOUCHED ON THE THING THAT I WAS
FOCUSED ON THAT'S MISSING FROM
THE FEASIBILITY STUDY. WHICH IS
EXACTLY WHAT AND THE CONTROLLER
TALKED ABOUT WHICH- IS THERE A
LESS RISKY AND LESS COSTLY
ALTERNATIVE IS THIS THE RIGHT
SOLUTION. RIGHT I MEAN EVEN
THOUGH I'M ON BOARD WITH WHAT.
WITH THE GOAL OF THIS BILL I
THINK THAT TO THE EXTENT THAT
WERE DOING THIS STUDY. WE
SHOULD BE DOING THE STUDY TO
MEANINGFUL WAY TO DECIDE WHAT
THE BEST WAY TO ACHIEVE OUR
GOAL IS. RATHER THAN DICTATING
WHAT WE THINK THE ANSWER IS I
THINK WE SHOULD BE OPEN TO
OTHER ANSWERS. AND SO I WOULD
REALLY URGE THAT THE FINAL
AMENDMENT TO THIS B. WE ASK
THAT WE ADDED AN ANALYSIS OF.
OTHER ALTERNATIVES THEY. MAY BE
LESS RISKY AND LESS COSTLY. BUT
WE THOUGHT WE COVERED THAT WORK
SAYS. AND I DON'T WANT. TO
NEGOTIATE ANYTHING OUTSIDE OF
WHAT THE CHAIRS ALREADY ASKED
US TO TAKE BECAUSE- THIS IS
WHAT THIS IS WHAT WAS ASKED
BUT- WHEN. WHEN I SAW THAT PAUL
DOES ABOUT- MY GLASSES GIVE
FONG. THE PRESENCE OF A REAL
WHETHER THE PRESENCE OF PRIVATE
SECTOR OR NON. NONPROFIT
COMPETITORS TO THE PROGRAM IF
THAT QUESTION IS ANSWERED THE
LEGISLATURE COULD DETERMINE TO
MOVE FORWARD OR NOT. SO WE
INCLUDED IT BECAUSE IT WILL
HAVE TO ANSWER WHETHER THERE
ARE PRIVATE COMPETITORS. OR
NONPROFIT COMPETITORS TO THE
PROGRAM UP SO IF. THEY'LL HAVE
TO STATE THOSE RATE SO YOU HAVE
IT IN THE MARKET ANALYSIS
YOU'RE READING FROM THE SECTION
OF WHAT THE MARKET ANALYSIS
SHOULD INCLUDE WHICH DOES
INCLUDE THAT OF WHAT THE ALT
pMARKET. AND THEY'RE BEING OTHER
THINGS ON THE MARKET COULD
STILL MAKE THIS FEASIBLE BY THE
DEFINITION OF THAT IT'S
IMPLEMENTABLE THAT IS NOT
RISKING A DOWNTURN AND THAT IT
CAN PAY FOR ITSELF IN SIX
YEARS. THAT IS NOT TO SAY THAT
WE CAN DO IT IN A MORE FISCALLY
CONSERVATIVE. AND RISK LAST
RISKY WAY AND I THINK THAT THAT
IS AN IMPORTANT QUESTION THAT
WE SHOULD BE ASKING YOU THE
FEASIBILITY STUDY WHICH WOULD
BE NOT IN THE MARKET ANALYSIS
SECTION BUT IN THAT SECTION.
THEY CURRENTLY ONLY HAS TWO
PARTS BUT WILL NOW HAVE A THIRD
PART AND I THINK THAT'S A
REALLY IMPORTANT QUESTION WE
SHOULDN'T PREDETERMINE THE
ANSWER TO HOW TO SOLVE THIS
PROBLEM. SO I URGE YOU TO
CONSIDER THAT MOVING. FORWARD
THANK YOU. THANK YOU. THANK YOU
THIS ASSEMBLY MEMBER DAVID. YES
THANK YOU MISTER CHAIR AND- I
THINK OF MY COLLEAGUES HERE OF
RAISED A LOT OF- A LOT OF MY
CONCERNS AND I WANT TO FIRST
THANK THE AUTHOR- PERSON VERY
GOOD CONVERSATIONS THAT WE HAD
LAST NIGHT THAT I HAD WITH YOU
AND ALSO WITH. SOME OF THE
SPONSORS AND- YOU JUST SAY FROM
THE FROM THE OUTSET THAT I. I
DO UNDERSTAND WHAT YOU'RE
TRYING TO DO. AND I THINK THAT
THERE IS- AS OUR AS OUR
COLLEAGUE SAID- IMPORTANT
OPPORTUNITY HERE TO PROVIDE
FINANCIAL SERVICES TO
COMMUNITIES THAT DON'T HAVE
THEM. I LIKE THE IDEA OF
COMPETITION I THINK THIS IS A
VERY INTRIGUING IDEA AND ONE.
THAT IS DEFINITELY WORTHY OF
CONSIDERATION. DONOVAN AID. I
THINK WHAT YOU'RE HEARING FROM
A LOT OF FOLKS TODAY AND FOR
MYSELF IS THAT WE DON'T WANT TO
TAKE. A BIG GAMBLE. WITH
TAXPAYER MONEY. AND WITH THE
SAVINGS OF LOW INCOME
COMMUNITIES WORKING FAMILIES.
THAT WE WANT UNDERSTAND THAT
THIS IS SOMETHING THAT'S GONNA
WORK OUT. AND WE CAN FEEL GOOD
ABOUT AND THERE'S A LOT OF
CONCERNS. ON A LOT OF DIFFERENT
LEVELS HERE SO. FIRST OF ALL I
APPRECIATE THE COMMITMENT TO
BRING THAT BACK TO THE
LEGISLATURE THINK BEFORE GOING
TO. EMBARK ON THE STAFF AND TO
DO SOMETHING THAT'S BIG WE HAVE
TO HAVE THE OPPORTUNITY TO
STUDY THAT TYPE OF. FEES ABOUT
USABILITY ANALYSIS IN DETAIL- I
THINK THE COMMENT. FROM OUR
COLLEAGUE FROM AROUND ABOUT
ADDING. ALTERNATIVE SIX. OFF
HERE TO ACHIEVE THESE GOALS
WHICH ARE VERY LAUDABLE AND
WORTHY GOALS- IS AN ACCENT
WANTED STARTING CARD YOU TO
CONSIDER THAT. LET'S LET'S DO A
REALLY THOROUGH ANALYSIS. AND
LET'S NOT POINTED IN ONE
DIRECTION OR THE OTHER LET'S
LET'S CALL THE QUESTION. GET
EXPERTS TO WEIGH IN. AND TRY TO
FIGURE OUT WHAT THE BEST WAY IS
TO DELIVER THE SERVICES BECAUSE
THESE THESE COMMUNITIES DESERVE
THOSE SERVICES. I DO I DO SHARE
THE SAME CONCERNS ABOUT- AFTER
INSURANCE I THINK READING THAT
IN SPECIFICALLY TO THE LANGUAGE
WOULD BE. WOULD BE HELPFUL- I
DID ALSO WANT TO RAISE THE
ISSUE OF THE COMPOSITION THE
BOARD OF SOMETHING. I SPOKE
WITH YOU ABOUT LAST NIGHT. BUT
NOT FOR ME A BIG. WITH A- RED.
HERE I THINK WE NEED TO. BE ALL
AND BE A SH. THAT THE PEOPLE.
THIS WITH. TO HAVE EXPERT. IN
THOSE SERVICES AT ALL OF THE
ISSUES THAT YOU IDENTIFIED.
FOCUSING ON EQUITY. FOCUSING ON
LABOR FOCUSING ON SMALL
BUSINESSES I THINK THAT I. I
WOULD SUGGEST WE RIGHT INTO THE
STATUTORY LANGUAGE ABOUT THE
MISSION OF THIS. ENTERPRISE IF
WE DO GO FORWARD WITH IT. NOT
TO FOCUS ON THOSE THINGS. BUT
WE NEED TO FEEL CONFIDENT THAT
THE PEOPLE RUNNING THE
ENTERPRISE. HAD THE APPROPRIATE
LEVEL OF EXPERTISE AND SO. I DO
UNDERSTAND THE CONCERN ABOUT
BRINGING IN PEOPLE FROM OTHER
FINANCIAL INSTITUTIONS YOU
DON'T WANT- THE BOARD TO BE
MADE UP OF COMPETITORS WHO ARE.
NOT GONNA BE ACTING IN THE BEST
INTERESTS OF THIS INSTITUTION.
BUT WHAT I HEARD YOU LAST NIGHT
WHICH WANT TO SUGGEST PUBLICLY.
I THINK WE HAVE A- WEALTH OF
KNOWLEDGE AND EXPERTISE IN
BANKING ISSUES IN OUR- IN OUR
IN. IN ACADEMIA. AND FOLKS ARE THINK ABOUT. THAT
JANET YELLEN OUR CURRENT.
SECRETARY OF THE TREASURY THE
WITH. A PROFESSOR AT UC
BERKELEY BEFORE THAT. RAFAEL
BOSTIC WITH THE PRESIDENT OF
THE FEDERAL RESERVE. BANK OF
ATLANTA WITH A PROFESSOR AT USC
KATIE PORTER WHO IS A PROFESSOR
AT UC IRVINE. THERE ARE PEOPLE
WITH DEEP SOPHISTICATED
KNOWLEDGE OF HOW TO RUN.
FINANCIAL ENTERPRISES. THAT CAN
HELP DIRECT THIS AND PUT THIS
ON THE RIGHT PATH. AND I REALLY
ELIEVE VERY STRONGLY THAT WE
NEED PEOPLE WITH EXPERTISE TO
RUN THE PEOPLE WITH EXPERTISE
IN COMPLIANCE. PEOPLE EXPERTISE
AND FRAUD PREVENTION PEOPLE
UNDERSTAND. OUR FINANCIAL
MARKETS CAPITAL MARKETS THAT.
THE TREASURY YIELD CURVE ALL
THE THINGS THAT ARE CENTRAL. TO
RUNNING THIS TYPE OF ENTERPRISE
CLOUD. IT'S GOING TO BE VERY
IMPORTANT ME I'M GONNA VOTE FOR
THIS TODAY. AS AS AS I TALKING
ABOUT I HAVE. CONFIDENCE THAT
YOU IN THE SPOTS ARE GOING TO
CONTINUE TO WORK TO SHAKE THIS
AND REFINED UP AND MAKE THIS A
STRONG PROPOSAL THAT WE CAN
FEEL GOOD ABOUT. BUT THAT
COMPOSITION OF THE BOARD IS A
VERY IMPORTANT ISSUE. NOTICE
ANY THAT THEY'RE GOING TO LOOK.
AT AND. HAVE THE EXPERTISE TO
BE ABLE TO REALLY. YEAH VAMP
COMMISSION THE CENTER. FOR ALL
PROTECT TAXPAYER DOLLARS TO
PROTECT THE GENERAL. IF YOU AND
I. ABOUT THAT NIGHT. THERE'S
REALLY. NO LEGAL. I'M NON LEGAL.
FOR THE STATE THERE WERE WE'RE
WE'RE NOT SURE EXACTLY WHAT
EXTENT OF THAT'S SOME THAT ARE
KEY- CHIEF FINANCIAL. MENTIONED
CAN. BEYOND THAT I THINK THAT
THERE'S POLITICAL AND MORAL.
RAPE ME SET UP THIS ENTERPRISE
AND IT'S AND IT FAILS AND THERE
ARE CONSEQUENCES FOR LOWER
INCOME COMMUNITIES. PEOPLE ARE
GOING TO COME TO THE
LEGISLATURE. THEY'RE GOING TO
EXPECT THAT WE DO SOMETHING TO
REDRESS SO I THINK WE NEED TO.
THINK VERY CAREFULLY ABOUT HOW
WE SET THIS UP IN A WAY THAT
WORKS OKAY THIS IS A THIS IS AN
IMPORTANT IDEA. IT'S A GOOD
IDEA IT'S SOMETHING THAT WE
NEED TO CONSIDER AND THINK
ABOUT IT THINK THERE'S AN
OPPORTUNITY TO HELP A LOT OF
PEOPLE HERE. THAT NEED TO BE
HELPED AND DESERVE FINANCIAL
SERVICES AND ARE NOT GETTING
THEM. MANY OF WHOM ARE BEING
EXPLOITED IF YOU KNOW BEING
SUBJECT EXPLOITATION RIGHT NOW.
BUT WE'VE GOT TO DO THIS A
REALLY THOUGHTFUL WE'VE GOT TO
MAKE SURE THAT PEOPLE WITH REAL
EXPERTISE ARE RUNNING WITH THIS
AND SO I APPRECIATE YOUR
WILLINGNESS TO. CONTINUE TO
WORK ON THOSE ISSUES. I'M GLAD
THEY'RE GONNA BE OPPORTUNITY
CAN YOU THAT CONVERSATION. AND
I JUST. WANT TO THANK YOU FOR
THAT CONVERSATION LAST NIGHT.
THANK YOU SO REMEMBER- I.
BELIEVE ASSEMBLY MEMBER GARCIA
CRISTINA GARCIA- YES THANK YOU
AND I APOLOGIZE- I WAS TIED UP
SO I'M PROBABLY GOING TO BE
REPETITIVE SOME OF THE COMMENTS
MY COLLEAGUES HAVE. ALREADY
MADE- I LIVE IN THE CITY ABOVE
ARDEN'S AND I KNOW I HAVE A
NUMBER OF FOLKS ARE A UNSERVED-
UNBANKED- IN MY COMMUNITY WHO
ARE GOING TO THE CORNER LIQUOR
STORE TO CASH THEIR CHECKS AND
PAYING THOSE FEES- OREGON AT
THE SUPERMARKET- ARE. AND THAT
THAT MINIMUM WAGE TO EASE THE
EASE TALK ABOUT YOU KNOW BEING
DIMINISH TO AN EVEN LESSER
AMOUNT OUT THERE- OUT THERE AND
SO I THINK THIS DISCUSSION IS
IMPORTANT BUT I DO HAVE A LOT
OF HESITATION ABOUT. MANAGING
EXPECTATIONS AND BEING REAL AND
HONEST WITH MY CONVICTIONS
ABOUT WHAT WE ARE DOING. OUT
THERE AND BEING IN A
RESPONSIBLE MANNER OUT THERE I
THINK HAVING A MARKET STUDY OR
FEASIBILITY STUDY. IS A GOOD
THING AND BRINGING THAT BACK TO
THE LEGISLATURE IS A GOOD
THING. I HAVE QUESTIONS ABOUT
THE YOU KNOW BORDER BEFORE WE
GET THOSE RESULTS. BACK OUT
THERE. ARE YOU KNOW I HAVE
QUESTIONS ABOUT WHETHER OR NOT
WE ARE DUPLICATING SERVICES
THAT ARE OUT THERE IN TWO WEEKS
SHOULD WE BE SHOWING THOSE UP.
I HAVE CONCERNS ABOUT STARTING-
PARTNERSHIP THAT MIGHT BE A
pWE ALREADY HAVE. IS THERE A
BETTER WAY TO DO THAT OUT
THERE. ARE OUT THERE AND SO I
HAVE. I HAVE CONCERNS ABOUT.
ALSO THIRTY ANOTHER STATE
AGENCY TO SERVE A COMMUNITY
LIKE MINE ON WE HAVE THE
AGENCIES THAT ARE NOT IN A GOOD
JOB OF SERVING A COMMITTEE LIKE
MINE. THANK THE TSC OF FOR
EXAMPLE RIGHT AND SO WHAT AGAIN
MANAGING THOSE EXPECTATIONS OF
MY COMMUNITY AND SO I THINK
THIS IS AN ISSUE THAT WE
DEFINITELY NEED TO ADDRESS AND
I DO APPRECIATE. THE AUTHOR
ELEVATING THIS DISCUSSION THE
SEEN OUR PLATFORM HERE. IT'S
NOT A BILL THAT I COULD SUPPORT
TODAY- AND I HOPE THAT AS THIS
MOVE ON AND MAKE. CA AGAIN.
THAT'S A OF THOSE CONCERNS THAT
HAVE GET GET ADDRESSED- THANK
YOU FOR TO. TAKE THAT THANK.
THANK YOU FOR REMEMBER. AND
OTHER ANY OTHER. BACK TO- BY
STURGEON I JUST WANNA MAKE ONE
FINAL COMMENT ON ONE OF THANK
THE AUTHOR BECAUSE I KNOW THE
AUTHOR HAS CHANGED HIS BILL
SIGNIFICANTLY FROM THE
INCEPTION TO NOW. AND IT WAS
YOUR DILIGENCE AND HARD TO MAKE
THAT HAPPEN AND ALSO I WANT TO
RECOGNIZE THE CHAIR IN HIS
STAFF- FOR THE UNTOLD HOURS
THAT YOU PUT INTO THIS FROM THE
GROUPS THAT HE MET ON BOTH
SIDES IN OPPOSITION OF ONE
SUPPORTERS WILL BE OFFERING
MEETING WITH ALL MEMBERS OF
THIS COMMITTEE- AS OUR NEW
MOISTURE I WANT TO COMMEND YOU
FOR ALL YOUR HARD WORK AND IT
IS AN HONOR TO BE A MEMBER. OF
YOUR COMMITTEE I AM BLASTERS
ONE REITERATE I THINK IT'S SO
IMPORTANT I COULD HAVE SAID IT
BETTER THAN MY STEAM COLLEAGUES
FROM THE FORTY FIFTH SIXTY
SECOND AND SIXTY DISTRICT
BETTER SPEAK MUCH BETTER THAN I
COULD EVER HOPE FOR BUT THE
IMPORTANCE OF. COMPRISING THE
COMMITTEE OF EXPERTS FROM
FINANCIAL INSTITUTIONS
SPECIFICALLY- IN THESE CREDIT
UNIONS AND BANKS AND FINANCIAL
INSTITUTIONS THAT CAN MAKE YOUR
BILL MAKE THIS POLICY MORE
SUCCESSFUL SO I. CERTAINLY HOPE
THERE'S OPPORTUNITY FOR THAT.
THANK YOU FOR. COMMENTS AND
SEEING NO OTHER QUESTIONS OR
COMMENTS FROM COMMITTEE. WE
WILL GO BACK TO OFFER. SOME
REMEMBER WOULD YOU LIKE TO
CLOSE YEAH I CAN'T SAY ENOUGH
OTHER THAN I'M EXCITED ABOUT
THE CONVERSATION AND THE
ABILITY TO TALK TO EVERYBODY I
MEAN AND I'M EXCITED ABOUT THE
JOURNEY. I MEAN THIS IS A
TESTAMENT TO THAT THE
LEGISLATIVE PROCESS WORKS WHERE
PEOPLE CAN HONESTLY DEBATE- FOR
ABOUT A MONTH AND A HALF- THE
POLICY POINTS OR MAYBE EVEN TWO
MONTHS. AND YOU COME TO A
BETTER PRODUCT- SO I REALLY DO
WANT TO. SAY IT AGAIN BECAUSE
I'M NOT I'VE SAID IT TO
EVERYBODY IN THE- TEXT
EVERYBODY IN THE WORLD I COULD
POSSIBLY THAT THE CHAIR DID A
PHENOMENAL JOB. OF HELPING TO
PUSH AND TO ASK THE TOUGH
QUESTIONS. SO THAT WE HAVE
SOMETHING- THAT AND THAT THAT
IS BETTER AND SOUND PUBLIC
POLICY BECAUSE- WE SHARE THE
GOAL OF BANKING THE UNBANKED
AND THOSE WHO ARE- UNDERBANKED.
AND- FOR THE MEMBERS OF THE
COMMITTEE IS OFTEN TIMES. FOLKS
BOOK FOR THINGS. AS THEY GO
THROUGH THE PROCESS. OF THE
SAME VOTING BUT THIS PARTICULAR
CASE- I FEEL GOOD ABOUT THE
CONVERSATIONS WITH THOSE WHO
ARE WHO MAY POTENTIALLY SUPPORT
AND THOSE WHO. POTENTIALLY MAY
NOT SUPPORT BECAUSE IT'S
INFORMED US ON HOW TO MAKE A
BETTER PRODUCT. BECAUSE WE ALL
SHARE THE SAME GOAL OF BANKING
AND THOSE WERE UNBANKED OR
UNDERBANKED. BUT THE REALITY IS
THAT THERE IS A EIGHT DESPERATE
NEED FOR A PROGRAM LIKE THAT.
FOR LIKE THIS IN AND MANY OF
OUR COMMUNITIES. ALL UP AND
DOWN THE STATE THAT LOOK LIKE
THE ONE THAT I REPRESENT. AND
WHEN WE DRIVE BY LIQUOR STORES
WHEN WE DRIVE BY SMALL MOM AND
POP SHOPS AND IT SAYS WILL CASH
THE CHECK. THE CASHIER. THAT
FIFTEEN DOLLARS AN HOUR IS NOT
REALLY FIFTEEN DOLLARS AN HOUR
WHEN IT'S WHEN IT'S TEN DOLLARS
TO CASH A CHECK WHEN IT'S
ANOTHER FIVE DOLLARS FOR MONEY
ORDER WHEN IT'S- FEE HERE.
OVERDRAFT FEE HERE A CHARGER A
MINIMUM BALANCE THERE. OR A
PAYDAY LENDER OR- OR ANY OTHER
SORT OF- ANY OTHER SORT OF
INSTITUTION. THAT THAT
GALLAGHER THE DOLLAR AND- I'LL
SAY THIS IS A- TOWARDS- THOSE
POPULATIONS BUT- BUT BUT ALSO
TEN ENSURING THAT WE KEEP MONEY
IN PEOPLE'S POCKETS BECAUSE
WE'RE TRYING TO DO- KEEP MONEY
IN PEOPLE'S POCKETS.SO THAT
HAVE THE ABILITY TO BID TO
DEVELOP ALL TO HAVE A SAVINGS
ACCOUNT. THE SUNDAY EARNED
CREDIT TO NOT HAVE TO TAKE THE
BUS AND ACTUALLY BUY A CAR. NOW
TO SOME DAY MAYBE EVEN BUY A
HOME. IT'S THOSE POPULATIONS
WERE EARNING THE LEAST AMOUNT.
OF HORROR UNDERBANKED. AND
UNBANKED WHO WERE TRYING TO
SERVE HERE SO I GOT A LOOK AT
THE EXCITED ABOUT THE
CONVERSATION MOVING FORWARD.
AND WOULD RESPECTFULLY ASK FOR
NEIGHBORHOOD. THANK YOU I DO
WANT TO THANK EVERYONE FOR
THEIR HARD WORK ON THIS BILL.
AND TO HIGHLIGHT- THE CHIEF
CONSULTANT AND THE COUNTLESS
HOURS HE SAID HE IS POURED INTO
THIS AND THE HARD WORK. AS YOU
CAN TELL FROM THE DISCUSSION
THE COMMITTEE HAS A LOT OF
QUESTIONS AND CONCERNS. ABOUT
WHAT IS BEING PROPOSED HERE
TODAY. I'VE BEEN VERY CLEAR IN
MY OWN STATEMENTS AND
CONVERSATIONS THAT I AM DEEPLY
CONCERNED. ABOUT HAVING THE
STATE OPERATE- HAVING THE STATE
OPERATING AS A BANK. OR A
FINANCIAL SERVICES PLATFORM.
THERE ARE SOME THINGS THAT
GOVERNMENT DOES REALLY WELL.
AND THERE ARE SOME THINGS THAT
IT DOES NOT. WE SHOUD BE AWARE
OF OUR LIMITS AND WE SHOULD
EMBRACE POLICY SOLUTIONS. THAT
BUILD OFF EXISTING SUCCESSFUL
MODELS. I WORRY THIS BILL
REQUIRES THE STATE TO TAKE ON A
TASK. IT CANNOT POSSIBLY
DELIVER ON. ONLY TO REPLICATE
THE GOOD WORK BEING DONE BY
COMMUNITY BANKS. CREDIT UNIONS
AND NONPROFITS. I INSTRUCTED
COMMITTEE STAFF. TO WORK WITH
THE AUTHOR AND SUPPORTERS TO
FIGURE OUT A WAY FORWARD. FOR
ME THE WAY FORWARD IS BETTER
INFORMATION. CAMPUS PROGRAM
WORK AND ACHIEVE ITS GOALS. AND
WHAT ARE THE RISKS TO THE STATE
AND TO THE PEOPLE PARTICIPATING
AND OPENING ACCOUNTS. I AM
SIMPLY NOT COMFORTABLE WITH
MOVING FORWARD UNTIL WE HAVE
ANSWERS. TO THESE QUESTIONS.
THE COMMITTEE'S PROPOSED
AMENDMENTS ALLOW ME TO
RECOMMEND PASSAGE TODAY. THOSE
AMENDMENTS ARE DETAILED IN THE
COMMITTEE ANALYSIS. ONE
AMENDMENT IS PARTICULARLY
IMPORTANT TO TODAY'S
DISCUSSION. IT WILL REQUIRE THE
BOARD TO CONTRACT OR CONTRACT
OUT FOR A MARKET FEASIBILITY
STUDY. OF THE BANK CAL PROGRAM.
THE FEASIBILITY STUDY MUST LOOK
AT THESE QUESTIONS. ABOUT
IMPLEMENTATION AND COST. AND
THE LEGISLATURE MUST APPROVE
THE BOARD'S DETERMINATION. THAT
THE PROGRAM CAN WORK. ONLY UP
ON THAT APPROVAL CAN WE ALLOW
FOR STATE DOLLARS TO BE SPENT.
ON THE PROGRAM. THIS AMENDMENT
IS CRITICAL. IT GIVES ME
COMFORT KNOWING WE ARE DOING
OUR DUE DILIGENCE. AND UPPER
LEVEL. WILL REVISIT THE
PROPOSAL ONCE AGAIN. WHAT'S WE
HAVE BETTER INFORMATION. AND
FINALLY I ASK THAT YOU TAKE
SERIOUSLY THE CONCERNS
ADDRESSED BY MY FELLOW
COMMITTEE MEMBERS TODAY. THE
MESSAGE WAS LOUD AND CLEAR.
FROM THE COMMITTEE MEMBERS
BOARD COMPOSITION. HOW THAT-
COMPOSITION COMES TOGETHER AND
INCLUDES THOSE FROM THE
INDUSTRY. THE STUDY CONTENT FOR
THOROUGH ANALYSIS AND
ALTERNATIVES NOT JUST TO GIVE A
MESSAGE OF. OF THIS IMPROPER UP
BUT TO ACTUALLY PROVIDE VIABLE
ALTERNATIVES IF THERE ARE
BETTER WAYS TO DO SOMETHING. SO
WITH THAT I DO AGREE WITH MY
FELLOW MEMBERS COMMENTS AND I
RESERVE THE RIGHT TO CALL IT
BACK TO COMMITTEE IF THIS BILL
MOVES IN THE WRONG DIRECTION.
WITH THAT DO I HAVE A MOTION.
SO I HAVE A MOTION FROM
ASSEMBLYMEMBER STONES SECOND
FROM ASSEMBLYMEMBER WICKS. THE
MOTION BEFORE US IS TO PASS TO
AS AMENDED THE ASSEMBLY
APPROPRIATIONS COMMITTEE
SECRETARY WILL YOU PLEASE CALL
THE ROLL. GRAYSON I GRAYSON
HIGH CHEN CHEN NO ERA CAN- CAN
I BURKE BURKE I CHOI CHOI NO
CERVANTES SERVANT CERVANTES HI
GABRIEL. APRIL HI CRISTINA
GARCIA. CRISTINA GARCIA NOT
VOTING. JANET WHAT. JANET
NGUYEN NO PETRIE-NORRIS.
PETRIE-NORRIS NO STONE STONE
AYE. WICKS WICKS I THE BILL HAS
SEVEN BILLS. THIS BILL PASSES-
THE- PASSES OUT OF COMMITTEE
WAS SEVEN BIRTH. THANK YOU. WE
HAVE. RIGHT WE HAVE MORE YEAH.
SO I KNOW WE DO HAVE BILLS ON
CALL SO I WILL ASK FOR THE
SECRETARY TO CALL THE ROLL FOR
THE BILLS. THAT ARE ON CALL. AB
THIRTEEN NINETEEN DO PASSED
COMMITTEE ON APPROPRIATIONS
GRAYSON. FIVE GRAYSON I.
CERVANTES CERVANTES I GAVE REAL.
ZERO AB THIRTEEN NINETY. HI.
WICKS WIXII. THE BILL HAS NINE
VOTES. THIS BILL PASSES OUT OF
COMMITTEE. AS DO PASSED THE
ASSEMBLY APPROPRIATIONS WITH
NINE BUCKS. I REMEMBER TO.
EIGHTY FIVE ELEVEN DO PASSED
COMMITTEE ON APPROPRIATIONS
GRAYSON HI GRAYSON HI.
CERVANTES CERVANTES HI GABRIEL.
CABLE HI WICKS WICKS HI THE
BILL HAS ELEVEN GOALS. THIS
BILL PASSES- DO PASSED TO
ASSEMBLY APPROPRIATIONS
COMMITTEE WITH ELEVEN VOTES. I
REMEMBER. THREE AB ELEVEN
SEVENTY TWO DO PASS AS AMENDED
TO COMMITTEE ON APPROPRIATIONS
GRAYSON AYE GRAYSON AYE.
CERVANTES CERVANTES I GAVE REAL.
APRIL NOT VOTING. WICKS WIXII
THE BILL HAS ELEVEN MODES. AB
ELEVEN SEVENTY TWO PASSES OUT
OF COMMITTEE AMENDED TO THE
ASSEMBLY APPROPRIATIONS WITH
ELEVEN VOTES. AND ITEM. FOR AB
EIGHT SEVEN FORTY PASSED
COMMITTEE ON APPROPRIATIONS
GRAYSON FIVE GRAYSON I
CERVANTES CERVANTES HI GABRIEL.
GIVE A HIGH WICKS WIXII THE
BILL HAS TWELVE GOALS. AB
ELEVEN SEVENTIES LARA AB EIGHT
SEVENTY FOUR PASSES TO THE TO
PASS TO ASSEMBLY APPROPRIATIONS
COMMITTEE WITH TWELVE. WITH
TWELVE BUCKS. THE OKAY I DO
WANT TO EXPRESS MY GRATITUDE
THE SPEAKER'S OFFICE STAFF THE
RULES COMMITTEE STAFF THE
LEGISLATIVE DATA CENTER THE
MODERATOR AND ALL WHO ENSURED
HIS HEARING COULD TAKE PLACE
ASSEMBLY BANKING AND FINANCE
COMMITTEE IS ADJOURNED.