ASSEMBLY BANKING AND FINANCE
COMMITTEE IS CALLED TO ORDER WE
DO NOT HAVE A QUORUM AT THIS
TIME BUT WE CAN START AS A
SUBCOMMITTEE WELCOME TO THE
ASSEMBLY BANKING AND FINANCE
COMMITTEE WHETHER YOU'RE HERE IN
PERSON WITH YOU WATCHING
VIRTUALLY OR ON THE PHONE LINES
I AM GRATEFUL TO HAVE YOU JOIN
US- HERE IN ROOM FOUR FOUR FOUR
FIRST OF ALL I WOULD LIKE TO
EXTEND A WARM WELCOME TO OUR NEW
COMMITTEE MEMBERS ASSEMBLY
MEMBER WILSON AND ASSEMBLY
MEMBER FONG. GOOD TO HAVE YOU
WITH US I LOOK FORWARD TO
WORKING TOGETHER IN THE MONTHS
TO COME AND NOW I WILL GO OVER
SOME KEY ELEMENTS OF THE
STRUCTURE OF TODAY'S HEARING
TODAY WE WILL ALLOW TESTIMONY
EITHER IN PERSON OR BY PHONE AND
FOR THOSE THAT ARE USING THE
MODERATED TELEPHONE SERVICE THE
CALL IN NUMBER FOR THIS HEARING
IS. 877-692-8957 THE ACCESS CODE
IS. ONE THREE ONE FIVE FOUR FOUR
FOUR YOU CAN ALSO FIND THIS
NUMBER ON THE ASSEMBLY BANKING
COMMITTEE WEBSITE AS WELL AS ON
YOUR TV OR MONITOR SCREEN. THE
OPERATOR ON THE LINE WILL GIVE
YOU INSTRUCTIONS ON HOW TO BE
PLACED IN QUEUE BASED ON WHETHER
YOU SUPPORT OR WHETHER YOU
OPPOSE A BILL IF YOU ARE CALLING
IN PLEASE ELIMINATE ALL
BACKGROUND NOISE THIS INCLUDES
MUTING YOUR LIVE STREAM
BROADCAST AND YOUR SMART DEVICES
TO REDUCE THE SOUND DISTORTION
IF YOU ARE HAVING PROBLEMS WITH
THE MODERATOR PHONES OUT THE
SERVICE YOU CAN CALL THE
COMMITTEE AT. 916-319-2014 AND
MY STAFF WILL BE THERE TO HELP
IN ANY WAY POSSIBLE. I ALSO WANT
TO NOTE THAT WE ARE ACCEPTING
WRITTEN TESTIMONY TO THE
POSITION LETTER PORTAL ON THE
COMMITTEE'S WEBSITE AND FINALLY
IN ORDER TO FACILITATE THE GOAL
OF HEARING AS MUCH FROM THE
PUBLIC WITHIN THE TIME LIMITS
THAT WE HAVE WE WILL NOT PERMIT
CONDUCT THAT DISRUPTS DISTURBS
OR OTHERWISE IMPEDES THE ORDERLY
CONDUCT OF LEGISLATIVE
PROCEEDINGS WE WILL NOT JUST
ACCEPT DESTRUCTIVE BEHAVIOR AND
BEHAVIOR THAT INCITES WORK
THREATENS VIOLENCE UNVEILED
THREATS- AND WE WILL 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 THAT WE
ALL FACE. HAVING SAID THAT I DO
BELIEVE WE NOW HAVE A QUORUM AND
IF YOU WILL SECRETARY PLEASE
CALL ROLE. GRAYSON HERE CHEN
HERE BEAR CAN CERVANTES CHOI
YEAH. MIKE VON GABRIEL WHEN.
PETRIE-NORRIS STONE WICKS WILSON. WE DO HAVE A QUORUM SO OUR
FIRST ORDER OF BUSINESS FOR
TODAY WILL BE THE CONSENT
CALENDAR WE HAVE- ONE BILL AB
TWENTY TWO SIXTY NINE THAT IS ON
THE CONSENT CALENDAR. DO I HAVE
A MOTION. I HAVE A MOTION BY
ASSEMBLY MEMBER PETRIE-NORRIS
AND SECONDED BY ASSEMBLY MEMBER
CHEN VICE CHAIR CHEN. BUT THAT
WILL SECRETARY PLEASE CALL ROLE. AB TWO TWO SIX NINE TO PASS-
FOR TO COMMITTEE ON
APPROPRIATIONS GRAYSON AYE
GRAYSON AYE CHAN. CHEN HI DEREK
CAN. CERVANTES CHOI CHOICE HI
MIKE FONG HI MY FONG HI GABRIEL
WHEN I WENT HI PETRIE-NORRIS
PETRIE-NORRIS HI STONE. WICKS
WILSON WILSON I. IT HAS SEVEN
VOTES THE CONSENT- CALENDAR HAS
PASSED WITH SEVEN VOTES WE WILL
KEEP THE ROAD OPEN FOR OTHER
MEMBERS AS THEY ARRIVE WE WILL
TURN OUT TO BILL PRESENTATIONS
ASSEMBLY MEMBER BERMAN YOU ARE
UP. ON NOT ON DECK YOUR UP AT
THE BASE THANK YOU MISS ROGER-
AND COLLEAGUES AND I WANNA START
BY THINKING THE CHAIR IN THE
COMMITTEES CONSULTANT- FOR THEIR
ENGAGEMENT AND SUGGESTED
AMENDMENTS WHICH I'M HAPPY TO
TAKE THE AMENDMENTS WOULD ONE
PROVIDE THAT IF THERE IS A
DEFAULT TIP AMOUNT THAT MUST
THAT TOOK HIM OUT MUST BE ZERO
THE ONLY DEFAULT YOU CAN HAVE A
ZERO. ENSURE THAT TIPS ARE
REFUNDABLE AND INFORM CONSUMERS
THAT ANY TIP IS VOLUNTARY AND
REFUNDABLE SO THERE SHOULD BE
TRANSPARENCY ABOUT THAT NEARLY A
DECADE AGO CALIFORNIA ENACTED
FINANCIAL SECTOR CONSUMER
PROTECTIONS TO SAFEGUARD
RESIDENTS RECEIVING PUBLICLY
ADMINISTERED FUNDS AT THE TIME
SOME INSTITUTIONS WERE CHARGING
FEES AND PENALTIES THE
VULNERABLE CALIFORNIANS LOOKING
TO ACCESS THEIR FUNDS SO THE
ENACTED BILLS PUT IN PLACE
CRITERIA FOR WHAT ACCOUNTS WOULD
BE ELIGIBLE TO RECEIVE THE
DIRECT DEPOSIT OF PUBLIC FUNDS.
LAST YEAR MY FRIEND AND FORMER
COLLEAGUE SENATOR RAMON AUTHORED
AN UPDATE TO THE LAW IN RESPONSE
TO NON BANK ENTITIES OFFERING
ACCOUNTS THAT AMONG OTHER THINGS
LEVIED EXCESSIVE OVERDRAFT FEES
ONE OF THE ADDITIONAL CRITERIA
ESTABLISHED LAST YEAR PROHIBITED
CREDIT OR OVERDRAFT FEATURES
THAT ALLOW FOR A VOLUNTARY FEE
CHARGE OR COST ESSENTIALLY A
VOLUNTARY TIP. THE CHANGES MADE
BY S. BEFORE NINETY SEVEN WERE
PER WERE APPROPRIATE IN LIGHT OF
THE PREDATORY ACTIONS OF SOME
FINANCIAL SECTOR ENTITIES BUT
THERE ARE ACCOUNTS AVAILABLE TO
CONSUMERS THAT MEET ALL OF THE
CRITERIA OF THIS VALUABLE
CONSUMER PROTECTION LAW BUT
ALLOW FOR VOLUNTARY TIPPING. I
JOINED BY A- ON BEHALF OF TIME A
CALIFORNIA COMPANY THAT ALLOWS
AN ACCOUNT HOLDER TO TAKE THEIR
ACCOUNT NEGATIVE WITHOUT
INCURRING A FEE MEANING YOU CAN
OVERDRAFT ON YOUR ACCOUNT
WITHOUT BEING CHARGE FOR THAT
OVERDRAFT. WELL THERE IS NO
CHARGE FOR THIS ALTERNATIVE TO
TRADITIONAL OVERDRAFT THE
ACCOUNT HOLDER HAS THE ABILITY
TO VOLUNTARILY TIP THE NONBANK
ENTITY. AS A FORM OF GRATITUDE
AND THE DECISION WHETHER TO TIP
OR NOT DOES NOT HAVE ANY EFFECT
ON THE CAN ON THE CUSTOMER'S
ACCOUNT. THEN OR IN THE FUTURE.
I WILL ACKNOWLEDGE THAT THERE
CONTINUE TO BE COMPANIES IN THE
SPACE THAT ARE NOT GOOD ACTORS
AND THIS BILL IS NOT INTENDED TO
AND DOES NOT EIGHT OR SUPPORT
THOSE PRACTICES. IT'S ALSO WHY I
ONCE AGAIN WANT TO THANK
COMMITTEE STAFFER ENGAGING AND
PROPOSING A FRAMEWORK OF
RESTRICTIONS THAT WILL ENSURE
COMPANIES THAT DO NOT LIVE UP TO
HI CONSUMER PROTECTION
STANDARDS. ARE KEPT OUT OF THE
SPACE- I RESPECTFULLY ASK FOR AN
AYE VOTE IN TESTIFYING WITH ME
IN PERSON IS MIKE BELOW- AND BY
PHONE IS NEXT TO A WALL. MR
CHAIRMAN MEMBERS MIKE BELOW IT
ON BEHALF OF CHIME FINANCIAL. I
APPRECIATE THE WORK OF THE
COMMITTEE YOU KNOW I'VEBEEN
DOING THIS A LONG TIME AND I
WOULD NEVER EVER BE INVOLVED
WITH THE BILL. THAT TAKES
ADVANTAGE OF CONSUMERS I HAVE
THE HIGHEST RESPECT FOR MY
FRIENDS IN THE CONSUMER GROUPS.
AND WE'VE HAD DISCUSSIONS ABOUT
THIS. I UNDERSTAND THAT THE TIP
MODEL HAS BEEN SUBJECT TO
COERCION. AND MISLEADING
PRACTICES BUT I DON'T BELIEVE
THAT CHIME DOES THAT AND I
BELIEVE IT IS. AN OPPORTUNITY
FOR THE LEGISLATURE TO CLARIFY
WHEN TIP PRACTICES ARE RIGHT AND
WHEN THEY'RE NOT. I BELIEVE
CHIME IS DEMOCRATIZING ACCESS TO
FINANCIAL SERVICES. ACCORDING TO
SELFREPORTED DATA.
APPROXIMATELY 60% OF CHIME
CUSTOMERS ARE PEOPLE OF COLOR.
AND 70% OR SO ARE LIVING
PAYCHECK TO PAYCHECK. THIS IS A
FREE SERVICE. AND WE ARE
DELIGHTED TO CLARIFY IN ACCORD
WITH THE WISHES OF THE
COMMITTEE. THAT THERE MAY BE NO
DEFAULT OR IF THERE IS THE
DEFAULT SHALL BE TWO ZERO. AND
THAT THE TIP IS REFUNDABLE IF
THE CONSUMER EVER WANTS IT BACK.
THIS IS AN OPPORTUNITY FOR
PEOPLE TO GET FREE SERVICE FEE
FREE FREE FREE ACCESS TO
FINANCIAL SERVICES. WITH A
CALIFORNIA BASED COMPANY THAT'S
DOING IT RIGHT WE COMMIT TO
CONTINUING OUR DIALOGUE WITH
THIS CONSUMER GROUPS I SPOKE
WITH THEM JUST A FEW MINUTES
AGO. AND THERE ARE THINGS THAT
MEAN WHAT MAY WELL AGREE ON BUT
WHAT WE DO AGREE ON. IS THAT THE
CONSUMER OUGHT TO HAVE FULL
DISCLOSURE EXACTLY HOW THE APP
WORKS. AND WE COMMIT TO THAT.
AND WITH THAT I'M HAPPY TO
ANSWER ANY QUESTIONS AND ASK FOR
AN AYE VOTE. THANK YOU VISIBLE
OVER YOUR TEST AND MR BERMAN
ACIMAN BERMAN YOU SAID YOU HAD
ANOTHER WITNESS ON THE PHONE- I
BELIEVE HE'S AVAILABLE FOR
TECHNICAL ASSISTANCE FOR
TECHNICAL ASSISTANCE ALL RIGHT
WITH THAT ARE THERE ANY OTHER
WITNESSES IN SUPPORT IN THE
HEARING ROOM. SEEING OR HEARING
NINE. MODERATOR OTHER ANY
WITNESSES IN SUPPORT ON THE
PHONE. THANK YOU IF YOU WISH TO
SPEAK IN SUPPORT PLEASE PRESS
ONE THEN ZERO AT THIS TIME. I
CURRENTLY HAVE NO COMMENT THANK
YOU THANK YOU MODERATOR WE WILL
NOW GO TO WITNESSES IN
OPPOSITION OUR FIRST WITNESS IN
OPPOSITION IS STANDING KIND OF
KAISER ON BEHALF OF CALIFORNIA
LOW INCOME CONSUMER COALITION.
WHO IS HERE IN PERSON AND- IF
YOU WOULD PLEASE. GO AHEAD. YOU
CAN TAKE A SEAT RATHER HERE AT
THE AS- AND YOU MAY BE. CAN
AFTERNOON- DANNY KAYE OKAY ON
BEHALF OF COLOR LOW INCOME
CONSUMER COALITION- AND ALSO-
SPEAKING ON BEHALF OF A
COALITION OF ORGANIZATIONS WHO
APPRECIATE THE AUTHOR'S INTENT
THE COMMITTEE AMENDMENTS BUT
MUST RESPECTFULLY CONTINUE TO
OPPOSE THE BILL CLICK IS A
COALITION OF FIFTEEN LEGAL AID
PROVIDERS FROM AROUND THE STATE
WHO BELIEVE THAT LOW INCOME
CLIENTS SHOULD NOT BE PUSHED TO
PAY FEES. THAT REDUCE THE FUNDS
HEY RECEIVE THEIR GOVERNMENT
RELIEF PROGRAMS. THIS CONTINUES
TO BE IMPORTANT AS OUR STATE
RECOVERS FROM JOB LOSSES THE
HIGHER COST OF LIVING. AND DEBTS
INCURRED BECAUSE OF THE PANDEMIC
AS THE BILL STANDS TODAY AB
TWENTY FIVE FORTY. WHAT IMPACT
RECIPIENTS OF TAXPAYER FUNDED
UNEMPLOYMENT PUBLIC ASSISTANCE
PROGRAMS PAYMENTS I'M SORRY AND
STATE COLLECTED CHILD SUPPORT
PAYMENTS THERE ARE WAYS TO
ACCOMMODATE ACCESS. TO THOSE
RECIPIENTS TO CHIME ACCOUNTS
YOUR EXISTING LAWS NOW. AND
THERE ARE A MYRIAD OF OTHER SAFE
OPTIONS THAT CALIFORNIA'S CAN
EMPLOYEE TO RECEIVE THEIR
BENEFITS WITHOUT OVERDRAFT FEES
INCLUDING. STATE DEMOCRATS THE
GROWING NUMBER OF BANKS THAT
HAVE ELIMINATED OVERDRAFT AND
NON SUFFICIENT FUNDS FEES THE
TWENTY OR MORE BANKS AND CREDIT
UNIONS IN CALIFORNIA THE OFFER
BANK ON CERTIFIED ACCOUNTS. AND
PREPAID CARDS AND BANKING OUT TO
COMPLY WITH EXISTING CALIFORNIA
LAW. THE BILL CREATES A LOOPHOLE
THAT WAS CLOSE LAST YEAR WITH
THE UNANIMOUS SUPPORT OF S. B.
FOUR NINETY SEVEN AND IT ALSO
DIMINISHES THE ORIGINAL INTENT
OF LAWS THAT THIS LEGISLATURE
PASSED IN TWENTY THIRTEEN TO
TWENTY FOURTEEN. SIMPLY STATED
PEOPLE WHO RECEIVE GOVERNMENT
BENEFITS NEED EVERY PENNY AND NO
ONE WHO IS SEEKING AN ACCOUNT
WITHOUT OVERDRAFT FEES RECEIVED
THEIR GOVERNMENT BENEFITS.
SHOULD BE PUSHED TO PAY THOSE
FEES EVEN IF IT'S CONSIDER
VOLUNTARY. AGAIN WE APPRECIATE
THE AUTHOR'S INTENT WE
APPRECIATE THE COMMITTEE'S WORK
WE RESPECTFULLY CONTINUE TO
OPPOSE THE BILL BUT LOOK FORWARD
TO CONTINUING TO WORK WITH THE
AUTHOR. AND THE SPONSORS THANK
YOU THANK YOU SO MUCH FOR YOUR
TESTIMONY WE DO HAVE A SECOND
WITNESS ON THE PHONE LINE LARA-
LAWRENCE SANDERS. FROM THE
NATIONAL CONSUMER LAW
ASSOCIATION. BURKE LAWCENTER.
SENATE THANK YOU SO MUCH I'M YES
I AM WITH THE NATIONAL CONSUMER
LAW CENTER WHICH WORKS FOR
ECONOMIC JUSTICE FOR LOW INCOME
AND VULNERABLE CONSUMERS WE
THANK THE AUTHOR STAFF THE CHAIR
AND THE COMMITTEE CONSULTANT FOR
THE DISCUSSION ABOUT THE
PROPOSED AMENDMENT TO THE CELL.
UNFORTUNATELY EVEN WITH THOSE
AMENDMENT EIGHTY TWENTY FIVE
CORNY BUT GIVE MAGENNIS THANKS
FOR THE TIP THE NATION OF
CALIFORNIA LAW FOR THE BENEFIT
OF ONE COMPANY THAT MAY NOT EVEN
HAVE A SINGLE ACCOUNT IMPACTED
BOTH PUBLIC ASSISTANCE PAYMENTS
ARE MADE THROUGH STATE DEBIT
CARDS SHE KNEW IF ANY GO TO
CHINATOWN AND ONLY A SUBSET OF
THOSE MAKING OVER DRAFTED. INTO
FOR THE POSSIBLY THAT OF ACCOUNT
. THE MINISTER WE HAVE. WHAT'S
REQUIRE CHINA AUTOMATE RE. ANY
TIPS PAID BY PEOPLE. ON BENEFITS
PUMP ASSISTANCE OR STATE COURT
CHILD SUPPORT. THE BIGGER. AS A
CONSULTANT NOW. THAT THIS BILL
IS IT. INDOORS OF TIP MODEL
WHICH A GROWING NUMBER OF
COMPANIES BEYOND CHINA ARE BEING
NEWS. TO EVADE CALIFORNIA
BLENDING IN INCLUDING TWENTY
PAYDAY APPS AND WEBSITES FAKE
EARNED ACT PRADA. AND NONBANK
BANKING TO PAY LOAN. THE
PROPOSAL NINE WOULD STILL THE
TIP NOT ALL I WOULD UNDERCUT.
APART OF FINANCIAL PROTECTION IN
THE BAY WHICH RECENTLY CLARA
THAT CHARGES FIFTEEN ARE SUBJECT
TO CALIFORNIA LAW WHETHER OR NOT
THEY ARE VOLUNTARY. IS NOT
VOLUNTARY EXCEPTION THE
CALIFORNIA USURY LAWS. COMPANIES
HAVE ENTERED WAYS PUSHING INTO
TIPPING. THE BILL FOR ONE AT
THAT THAT LEAVES THE WORLD WITH
OTHER COERCIVE TACTICS I JUST
DISCOVERED A NEW WAY ONE COMPANY
HARASSES AND MAKES IT BACK WELL
FUNCTIONAL FOR THOSE WHO DO NOT
. SEVEN OF ENDORSING THE TO THAT
THEY- ASSEMBLY THE CODES WOULD
ALLOW CHINA TO READ ANY. THAT
1100% OF THE CRITICAL MAY PHONE
THE ROLE. WE ALSO URGE YOU KNOW
BROWN'S AT A PRICE RIGHT ABOUT
TO IN THAT THE LAWSUIT. TODAY'S
REASON WE RISK A THE AS A THE
CURRENT IN THAT ARE HAPPY TO CAN
TO ENGAGE IN THE- THANK YOU.
THANK YOU FOR THAT TESTING AND
MODEL ARE THERE ANY OTHER
WITNESS. IN OP. ON THE PHONE.
THANK YOU IF YOU WISH TO SPEAK
IN OPPOSITION PLEASE PRESS ONE
THEN ZERO AT THIS TIME. PINE
TWENTY TO PLEASE GO AHEAD.
NUMBER CATALINA SANCHEZ ON
BEHALF OF THE COALITION OF
OPPOSITION TO THE BILL IF I MAY
READ AT CENTER FOR RESPONSIBLE
LENDING ASIAN LAW ALLIANCE BUT
THAT IT LEGAL SERVICES
CALIFORNIA AT THE BUILDING
COALITION. CALIFORNIA
REINVESTMENT COALITION
CALIFORNIA ASSOCIATION FOR MICRO
ENTERPRISE OPPORTUNITY STATE
ACTION FOR ALL MENTAL HEALTH
ADVOCATES YOU SERVICES NATIONAL
CRIMINAL LAW PROJECT PUBLIC
LAWCENTER ANY SAN FRANCISCO
OFFICE OF FINANCIAL DEPARTMENT
AND RESPECTFUL OPPOSITION. TO
TWENTY FIVE FORTY THANK YOU.
THANK YOU. THANK YOU I HAVE NO
FURTHER COMMENT. THANK YOU
MODERATOR AND OTHER WITNESSES IN
OPPOSITION IN THE HEARING ROOM.
C. NINE AND HEARING NONE OF.
ASSEMBLY MEMBER BERMAN I JUST
WANNA THANK YOU NUMBER ONE FOR
WORKING- WITH STAFF AND THIS IS
FOR AB TWENTY FIVE FORTY I DO
WANT TO STATE THAT THE
RECOMMENDATIONS TO PASS AS
AMENDED TO THE COMMITTEE ON
APPROPRIATIONS AMENDMENTS ARE
DETAILED IN THE ANALYSIS SO WITH
THAT I AGAIN WANT TO THANK YOU
FOR WORKING WITH STAFF. AND AND
FOR YOUR STAFF AS WELL SUPPORT
IN OPPOSITION FOR YOUR WORK ON
THIS BILL AND- YES I'LL GET TO
THAT IN JUST ONE MOMENT OF WELL
I TELL YOU WHAT WOULD YOU LIKE
TO MAKE A CLOSING STATEMENT SURE
YOU KNOW JUST JUST APPRECIATE
ALL DO IT DO YOU HAVE YES I AM
SO SORRY I AM RUSHING THROUGH
THE SENATE SHOULD RUSSIA- LET'S
BRING IT BACK TO COMMITTEE MR
BERMAN I WAS GOING TO SPARE YOU.
A LOT OF QUESTION I YOU KNOW
WHAT AND I WAS TRYING I WASN'T
GOING TO TURN THAT DOWN I WAS I
WAS I WAS REALLY TRYING TO HELP
YOU MY WAY I APPRECIATE- THE
HOWEVER NOTED THAT YOU ARE NOW
AND THE LINES TO. THE HOT SEAT-
WITH THAT SAID ASSEMBLY MEMBER
PETRI. WOULD YOU BE SO KIND JUST
GO AHEAD AND ASK YOUR VERY KIND
QUESTION YES YES VERY NINE
QUESTING Q. THANK YOU MISTER
CHAIR AND AT THANK YOU TO THE
AUTHOR. I SO. I THINK IN YOUR
SIDE THE OPEN AND ADMISSIBILITY.
OPENING REMARKS I'M YOU
ACKNOWLEDGE THAT THE TECH MODEL
IS SUBJECT TO COURT CORES AND
YOU SAID. BUT THAT'S NOT
HAPPENING AT CHINA. WHETHER IT
IS OR ISN'T I DON'T KNOW I DON'T
KNOW ENOUGH ABOUT TRYING TO MAKE
THAT ASSESSMENT BUT I THINK
THAT. EVEN YOU SEEM TO
ACKNOWLEDGE THAT IT IS. IT'S AN
ISSUE WITH THE TYPICAL MODELS TO
WHAT SAFEGUARDS EXIST IN THIS
BILL. TO ENSURE THAT THIS. DOES
NOT PEN UP THE DOOR FOR
COERCION FOR VULNERABLE
POPULATIONS AS A FAIR QUESTION I
THINK I HAVE SEEN AND I'M NOT A
HUGELY TECHNOLOGICAL PERSON I
ADMIT FOR THE PEOPLE WHO. FUSE
THE CHIME APP KNOW WHAT THEY'RE
DOING BUT I HAVE SEEN. FINTECH
MODELS WHICH HAVE A VARIETY OF
PSYCHOLOGICAL COERCION INVOLVED
LIKE A LITTLE PERSON WILL GET
MORE HAPPY AS YOU TIP. CURRENTLY
IT WILL THROTTLE DOWN THE
SERVICE OR GIVE YOU MORE SERVICE
LATER IF THERE IS A HISTORY OF
TIPPING SELL THIS ESTABLISHES
THAT YOU MAY NOT IN ANY WAY
ENHANCE THEIR PERFORMANCE OR THE
SERVICE FOR PEOPLE WHO TIP OR
DEGRADE IT FROM PEOPLE WHO
DON'T. IT HAPPENS THAT THE
DECISION TO TIP IS AFTER YOU'VE
RECEIVED THE SERVICE AND THE
SPOT ME SERVICE- IT HAS TO
DEFAULT TO ZERO IF THERE'S ANY
DEFAULT AT ALL IN CHINA HAS NO
DEFAULT- IT HAS TO BE REFUNDABLE
IF YOU WANT YOUR MONEY BACK YOU
CAN HAVE YOUR MONEY BACK. THE
ONE THING I DISAGREE
RESPECTFULLY WITH THE OPPOSITION
IS THEY TOLD ME THAT IT'S NOT
POSSIBLE TO DEFINE VOLUNTARY AND
I THINK WE DO. WE DEFINE
DIFFICULT TERMS ALL THE TIME. IN
HIS BODY AND TO ME THOSE ARE
INDEED CHAU VOLUNTARINESS AND IF
THERE'S SOME OTHER THAT WE CAN
CONSIDER. HAPPY TO DO IT AND
JUST TO FOLLOW UP. ON A MEMBER
BE GENEROUS AMOUNT OF YOU. HAD A
CHANCE TO SEE THIS- SCREENSHOT.
OVERTIME IT'S AS IF YOU LEAVE A
TIP FOR SPOT ME WE SPOTTED YOU
TWENTY DOLLARS WITHOUT FEES AND
THEN THERE FOR BOXES 5% AND THE
TIP 10% 215% TIP NO TIP ALL ALL
CLEARLY. LABELLED AND THEN IT
SAYS WHETHER YOU TIP OR NOT HAS
NO IMPACT ON YOUR SPOT ME
ELIGIBILITY OR LIMITS- SO YOU
KNOW I THINK THIS IS A CLEAR WAY
WHERE. YOU'RE NOT FOLLOWING
SOMEBODY INTO TIPPING YOU'RE NOT
TRICKING SOMEBODY INTO BELIEVING
THAT THEY HAVE TO TIP FOR IT TO
CONTINUE RECEIVING THE SERVICE.
AND WE I AM MORE THAN OPEN TO
OTHER IDEAS THAT THAT THE
OPPOSITION HAS TO MAKE SURE THAT
IT'S CLEAR IN THE BILL. THE KIND
OF STEPS THAT YOU CAN TAKE TO-
DID IT TO HAVE A TIPPING OPTION
OR OR NOT- BUT YOU. YEAH I MEAN
I THINK YOU ALL KNOW ME I'D- I'D
RUN CONSUMER PROTECTION BILLS
ALL THE TIME ABOUT ANOTHER ONE
THIS YEAR- YOU KNOW IT'S NOT MY
INTENTION AT ALL TO. ALLOW FIRST
THAT PEOPLE. INTO PAYING
SOMETHING- THAT THEY DON'T WANT
TO- BUT THIS IS A WAY O.
PROVIDE THEM AN OPTION- YOU KNOW
WHEN THEY'RE RECEIVING AT THE
FEET. A SERVICE WITHOUT A FEE
AND A SERVICE THAT IF THEY WRITE
A TRADITIONAL BANKING
INSTITUTION WOULD PROBABLY AND
INVOLVE A HEFTY OVERDRAFT FEE.
AND I CERTAINLY AND I THINK THE
OPPOSITION AND IT I THINK. IT
KNOWLEDGE AND THE YOUR INTENT
AND SO I DON'T THINK THIS IS
ABOUT THAT ANYONE'S CONCERNED
ABOUT YOUR INTENT OR- IF ANYONE
QUESTIONING YOUR YOUR RECORD AS
A- CONSUMER ADVOCATE AND- YEAH.
OF COURSE YES. BUT I THINK WITH
SO MANY THINGS THAT WE DO THERE
ARE UNINTENDED CONSEQUENCES AND
I THINK THAT WOULD. THAT'S MY-
QUESTION AND AS I SAID IT'S IN
I'M STILL TRYING TO WRAP MY HEAD
AROUND- YEAH MY PERSPECTIVE ON
TO BEING PARTICULARLY. WITH THIS
KIND OF A MARKET SO I THINK
AGAIN IN YOUR- IN YOUR OPENING
YOU SAID THAT. AT 70% OF YOUR
CUSTOMERS ARE PEOPLE WHO ARE
LIVING PAYCHECK TO PAYCHECK.
THESE ARE THE MOST VULNERABLE
CONSUMERS IN THE STATE OF
CALIFORNIA AND SADLY. THEY ARE
SOME OF THE LEAST FINANCIALLY
SAVVY CONSUMERS IN THE STATE OF
CALIFORNIA WHICH IS WHY. THEY
ARE OFTEN SUBJECT TO COERCION
EXPLOITATION AND FRANKLY JUST
BEING CONFUSED AS TO LIKE WAIT
TO I REALLY GET THIS THING AGAIN
IF I DON'T KEPT THEM SO. I THINK
THAT'S KIND OF THE ROOT OF MY-
CONCERNS NOT ABOUT THIS COMPANY
SPECIFICALLY BUT THE FACT IT.
DOES THIS THEN. OPEN THE DOOR TO
BAT PREDATORY LENDERS WHEN YOU
KNOW THAT WE KNOW THAT THOSE
FOLKS EXCESS. I'M TO TAKE
ADVANTAGE OF THE CHANGES THAT WE
HAVE MADE HERE. TO AND I THINK
THAT ONE OF THE OPPOSITION FOLKS
SAID THAT IT YEAH UNDERCUTS THE
LAWS THAT ARE INTENDED TO CAP
INTEREST RATES AND PROTECT.
CALIFORNIA CONSUMERS SO. I'M I
GUESS COULD YOU COULD YOU
ADDRESS THAT CONCERN AND THEN. I
WOULD ALSO LOVE TO HEAR FROM THE
OPPOSITION I KNOW THE OTHER JUST
SAID YOU'RE OPEN TO IDEAS IN
TERMS OF SOME SPECIFIC.
PROTECTIONS THAT POTENTIALLY
COULD MAKE YOU MORE COMFORTABLE.
WITH. A PROPOSAL LIKE THIS.
THROUGH THE CHAIR PLUS. SO IT
DOES REQUIRE THAT THE- RIRE TO
THE EXERCISE OF THE TIP YOU HAVE
TO MAKE A CLEAR AND CONSPICUOUS
DISCLOSURE THAT THIS HAS NO
BEARING ON YOUR SERVICE SO WHAT
WE'RE ATTEMPTING TO MAKE IT AS
CLEAR AS WE POSSIBLY CAN AND IF
THERE'S WAYS TO MAKE THAT MORE
CLEAR BUT THAT'S PART OF THE-
COMMITTEE AMENDMENT I AM TOLD
THAT ROUGHLY 20% OF. CHIME
CUSTOMERS THAT UTILIZE SPOTTY
TIP SO 80% DON'T IT'S VERY CLEAR
TO ME I'VE AND I'VE LOOKED AT
THE WORK FLOW HERE AND WE'RE
HAPPY TO GIVE IT TO YOU IT'S
VERY CLEAR THAT YOU DON'T HAVE
TO DO IT TO GET THE SERVICE AND
SO IF THERE ARE WAYS TO MAKE IT
MORE CLEAR OR MORE DISCLOSURE
WE'RE HAPPY TO DO THAT- WE THINK
THAT WE'RE WE'RE ACTUALLY KIND
OF DEMOCRATIZING FINANCIAL
ACCESS TO FINANCIAL SERVICES
HERE IT'S A- IT'S A GOOD SYSTEM
. FIVE PM JUST QUICKLY FOLLOW UP
YOU KNOW YOU ALLUDED TO THAT TO
THE FACT THAT 7% OF TIME
CUSTOMERS ARE LIVING PAYCHECK TO
PAYCHECK AND- I THINK THAT'S A
TESTAMENT TO CHIME AND THEIR
ABILITY TO BANK. THE UNBANKED-
AND TO CREATE A SERVICE- FOR A
LOT OF PEOPLE THAT DON'T THAT
WHERE THERE'S NO RISK OF FEES-
RIGHT WITH NO RISK OF OVERDRAFT
FEES- THAT TRADITIONAL BANKS
HAVE AND SO YOU KNOW THEY'VE
CREATED A MODEL. THAT'S ALLOWED
A LOT OF PEOPLE THAT DON'T
USUALLY HAVE ACCESS TO
TRADITIONAL BANKING OPTIONS THEY
CREATED A NEW OPTION FOR THEM
WITHOUT THE FEES THAT THE
TRADITIONAL BANKING OPTIONS
HANNAH- WHICH I THINK IS A- IS
IT. PRETTY ADMIRABLE THING.
BONTA ASSEMBLY MEMBER TOUCHING
NORTH OF QUESTION. ARE YOU MAY.
THIS IS LAWRENCE WITH NATIONAL
LAW CENTER I'M SO EVEN WITHIN.
IT STILL IS TO THINK BETWEEN BY
CHARGES AND CHARGES THAT ARE NOT
MILITARY IDEA P. I. JUST REJECT
. THEY MADE CLEAR THAT UNDER LAW
A CHAR IS NOT THAT IS. AND THE
NO IN THE LAW FOR THE LOG IN THE
RULES GOVERNING BEANS AND
INTEREST AND THAT IS ACTUALLY
LONG FAN CAL LAW THAT THERE IS
NO VOLUNTARY. TO THE USER IN
NOT. WITH RESPECT TO THE
SPECIFIC AMENDMENTS. D. YOU KNOW
THE AMENDMENTS THAT THE AS- OR
COULD. OF THE CAR OR OVER. FEES
BY COUNTY. WITHIN THE BUT THE A
LOT OF THE WAYS THAT COME. CAN
COERCE TIPS AND ADVICE THE DAY I
DISCOVERED DEEP IN THE TERMS AND
CONDITIONS OF ANOTHER COMPANY
THAT SAYS IT DOES NOT DIMINISH
YOU KNOW MAKE ANY YEAH IT
CHANGES IF YOU DON'T TO. DEEPEN
THE TERMS OF THE CONDITIONS
THERE'S A WAYS WHERE THEY LIKE
TURN OFF THE ALERTS THAT YOU
WANT AND MAKE THE APP LESS
FUNCTIONAL IF YOU DON'T GET
THAT. SO THERE IS AN NUMBER OF
WAYS THAT COMPANIES CAN DO
THINGS THAT WE JUST CAN'T WRITE
INTO THE LAW. BY DRYNESS BETWEEN
SOMETHING THAT IS NOT PART OF
CALIFORNIA ON THAT UNDERMINE THE
FBI'S. A RECENT. OPINION THANK
YOU FOR THAT N. ASSEMBLY.
PETRIE-NORRIS YOU HAVE ANY OTHER
. WHAT HAPPENED QUESTIONS WITH
THIS BILL IS THEN THE VOLUNTARY
TIPS X. FROM THAT INTEREST
CALCULATION OR WOULD IT BE
INCLUDED AND SUBJECT TO THE
INTEREST RATE CAPS THAT WILL OF.
IMPLEMENTED THAT QUESTION HAS IN
EVERY DEPARTMENT SYMBOLIC EXCUSE
ME MR BELOW IF YOU YEAH AND I
DON'T THERE IS NO INTEREST ON
THE OVERDRAFT FEATURE. SO RIGHT
SO I DON'T KNOW HOW YOU WOULD
MAKE AN A. P. R. DISCLOSURE FOR
EXAMPLE- YOU ARE NOT IT'S NOT
ALSO I JUST ASSUME THAT YOU ALSO
HAD A LENDING PRODUCT AS A SEAT
BELT WITH IT IT'S JUST- THIS
THIS JUST LOSING OVER DROUGHT
ONLY TO THE OVERTURE YES ALL
RIGHT SO THERE'S NEVER THERE'S
NO INTEREST THAT SORT OF
INTEREST. OF GOT OKAY WE'RE
TALKING ABOUT A CHARGER GODDESS
. OPTIONS THAT ARE AVAILABLE AS
FAR AS WHETHER TO ALLOW THEM TO
TIP OR NOT. YES DR CHOI. I AM
LOOKING AT PM. SUPPORTS AND THE
- AND A POLL WAS NUMBER VOCAL
WHAT IS IT IS TO ABOUT TWELVE
WHAT IT FOR THE- IT FOR THIS NAY
TRUE IF CONSUMER. WHY ARE THERE
ARE SOME. OF ENTITIES NO I AM
NOT LET ME SAY I LOVE A LOT OF
THE GROUPS THAT ARE OPPOSED TO
MY BILL- AND THAT'S AND THAT'S A
THAT'S AN AWKWARD THING- YOU WE
HAVE DISAGREEMENTS I GUESS ON ON
YOU KNOW THE IMPACT THAT THIS
WILL HAPPEN WE HAVE
DISAGREEMENTS ON YOU KNOW I
THINK THAT- YES. THAT WHETHER OR
NOT. PEOPLE SHOULD HAVE A
VOLUNTARY OPTION TO TIP FOR
SOMETHING WHEN THEY RECEIVE A
SERVICE WITH NO FEES AND I THINK
IT'S A FUNDAMENTAL DISAGREEMENT
ON THAT. RIGHT BUT I SHOULDN'T
SPEAK FOR THE OPPOSITION SO I
HAPPILY NO AND I AND I. PARDON
ME MAY SPEAK BRIEFLY I DO WANT
TO DRAW THE DISTINCTION THAT I
AM SPEAKING ON BEHALF OF THE
CALIFORNIA LOW INCOME CONSUMER
COALITION AND JUST TO ECHO. THE
AUTHOR'S STATEMENT YOU KNOW WE
HAVE WORKS RACKLEY WITH HIS
OFFICE AND DO YOU KNOW HIM TO
BE. A GOOD SUPPORTER OF LOW
INCOME AND MIDDLE INCOME
CONSUMER PROTECTIONS BUT IN THIS
CASE. THERE'S STILL CONTINUE TO
BE LOOPHOLES THAT WE SEE- YOU
KNOW ESPECIALLY WHEN WE'RE
TALKING ABOUT COMMUNITIES. WHERE
THERE MIGHT BE A LANGUAGE ISSUE
THERE MIGHT BE YOU KNOW SOME
COMPREHENSION THERE IS DURESS
THERE'S YOU KNOW THE STRESS THAT
COMES WITH AN ECONOMIC. ALL OF
THESE ISSUES THAT WE'RE ALL WELL
AWARE OF AND WE JUST THINK THAT.
THERE'S MORE ROOM FOR
CONVERSATION. I THINK WE ARE
VERY OPEN TO THAT CONVERSATION
THANK YOU VERY MUCH I'VE HEARD
THAT POSSIBLE TIMES NOW ABOUT-
YOUR OPENNESS. AND THEIR
REQUEST. FOR MORE- YES SAYS
MEMBER MARC. THANK YOU MISTER
CHAIR I JUST WANTED TO ECHO THE
CONCERNS OF MY COLLEAGUE. FROM
ORANGE COUNTY AND SAY YOU KNOW I
KNOW YOU TO BE A MEMBER WHO
CARES DEEPLY ABOUT OUR LOW
INCOME COMMUNITIES AND- MY
CONCERN WITH THIS BILL LIES IN
EXACTLY WHAT WE'RE HERE FOR THE
OPPOSITION WHICH IS THAT IT IS
THOSE THAT ARE BEING. SUBJECT TO
OVERDRAFT WHO ARE THE ONES WHO
ARE BEING ASKED TO TAP RIGHT
WHICH IS OUR MOST VULNERABLE
CONSUMERS. AND I THINK THAT TO
THE EXTENT THAT WE ARE CREATING
A LOOPHOLE IN A BILL THAT I
BELIEVE I HEARD WAS UNANIMOUSLY
PASSED BY THIS COMMITTEE- THERE
REALLY PROTECTED CONSUMERS. WHO
ARE GETTING YOU KNOW ASSISTANCE
FROM THE STATE BECAUSE THEY NEED
IT AND NOW WE'RE TAKING THAT
ASSISTANCE IN ASKING THEM TO TAP
OF FOR PROFIT COMPANY THAT GIVES
ME PAUSE THAT'S NOT MY INTENT
WHEN I. ASK TO GIVE GOVERNMENT
ASSISTANCE INDIVIDUALS WHO NEED
I DON'T WANT IT TO HAPPEN TO
STAND UP AT THE TECH COMPANIES.
AND SO YOU KNOW I JUST I'M GONNA
GO FOR THE OAKS I TRUST YOU I
TRUST YOU TO GET THIS BILL TO A
PLACE WHERE CONSUMERS ARE
PROTECTED PERHAPS WE COULD
EXEMPT. YOU KNOW FEES FOR ANYONE
USING THE APP WHO IS RECEIVING
ASSISTANCE RATES OVERALL NOT
ASSISTANCE USERS YOU CONTEST BUT
MAYBE IF YOU'RE ON ASSISTANCE
THAT IS NOT SOMEBODY WE CAN
AFTER TECH BECAUSE WE SHOULD BE
TAKING THOSE DOLLARS. AND GIVING
THEM TO TECH COMPANIES- BUT I
TRUST YOU TO DO THAT WORK BUT I
REALLY DO HAVE RESERVATIONS
ABOUT IT'S CURRENTLY DRAFTED AND
THINK MORE WORK IS NEEDED I
TRUST YOU DO THAT TO THANK MR
BERMAN I APPRECIATE THAT AND YOU
KNOW WORK BLACK OF TALK ABOUT
WILL CONTINUE TO HAVE
CONVERSATIONS AND I KNOW- THE-
OPPONENT. CALLING FROM THE PHONE
MENTIONED THE CONCERNS DIGGING
IN THE TERMS OF USE OF A OF A
DIFFERENT COMPANY AND WHETHER OR
NOT YOU KNOW YOU COULD THROTTLE
SERVICES O ON AND AFTER THAT
YOU KNOW WILL WILL PUT THAT IN
THE BILL THAT YOU BECAUSE I
THINK IT'S MEANT TO BE IT MIGHT
ALREADY BE IN THE BILL THAT YOU
CANNOT. PRODUCE SERVICES IF YOU
DECLINE THE OPTION TO TIP.
THAT'S NOT AND SO WE WILL MAKE
THAT A- AIR TIGHTNESS OF- TO IT
TO. MAKE FOLKS COMFORTABLE WITH
THE LANGUAGE BECAUSE I USED TO
WRITE TERMS OF USE- BACK IN MY
IT LAWYER DAYS AND I KNOW HOW
LONG THEYGET AND I KNOW THAT
NOBODY READS THEM- SO WE WANT TO
MAKE SURE THAT PEOPLE CAN'T. YOU
KNOW PUT ANYTHING TRICKY IN
THERE TO GET AROUND WHAT WE'RE
TRYING TO DO. SO I. YEAH THANK
YOU ASSEMBLY MEMBER AND ARE
THERE ANY OTHER QUESTIONS. IN MR
BERMAN WOULD YOU LIKE TO MAKE A
CLOSING STATEMENT I APPRECIATE
THE CONVERSATION AND WILL
CONTINUE TO WORK WITH THE
OPPOSITION. ALL RIGHT WITH THAT
THANK YOU VERY MUCH- TO THE
ASSEMBLY MEMBER THANK YOU TO YOU
YOUR STAFF. AND ALSO TO THE
SUPPORT OPPOSITION FOR WORKING
ON THIS BILL AS WELL AS THE
COMMENTS THAT YOU AND QUESTIONS
YOU HAVE HEARD FROM THE
COMMITTEE MEMBERS THAT ARE HERE
TODAY WHICH I BELIEVE ARE VERY
VERY IMPORTANT- AS INPUT FOR YOU
MOVING FORWARD AS WELL AS THE
VOICE OF OPPOSITION. IN MAKING
SURE THAT WE DO ADDRESS ANY
LOOPHOLES AND ADDRESS THE
CONCERNS THAT OPPOSITION HAS THE
COMMITTEES PROPOSED AMENDMENTS
WILL MAKE IT CLEAR TO THE
CONSUMER THAT THE TIP IS TRULY
VOLUNTARY. THIS WILL ALSO HELP
PROVIDE CRUCIAL SAFEGUARDS AND
ENSURE CONSUMERS CAN ACCESS AND
AFFORDABLE DIRECT DEPOSIT OPTION
SO I REALLY DO SHARE THE
OPPOSITION'S CONCERNS ABOUT THE
USE OF VOLUNTARY TIPS AND
FINANCIAL SERVICES. I AM
GRATEFUL FOR THEIR ENGAGEMENT I
HAVE LEARNED A LOT- REALLY HAVE
ABOUT ALL THE WAYS THAT POLITICS
CAN BE MISUSED AS WAS STATED- IN
TESTIMONY HOWEVER I ALSO WANT TO
MAKE SURE THAT WE DON'T BECAUSE
UNNECESSARY DISRUPTION. FOR
CALIFORNIANS AND I DON'T WANT TO
TAKE AN OTHERWISE AFFORDABLE
OPTION OFF OF THE TABLE AND FOR
THAT REASON THE COMMITTEE'S
PROPOSED AMENDMENTS ADD GUARD
RAILS FOR THESE TYPES OF
ACCOUNTS. AND WITH THAT DO I
HAVE AND I'M A MOTION AND A
SECOND. SO I DO HAVE A MOTION
FROM VICE CHAIR CHEN AND THE
SECOND FROM ASSEMBLYMEMBER
CERVANTES WITH THAT. SECRETARY
PLEASE CALL THE ROLL. AB TWENTY
FIVE FORTY TO PASS AS AMENDED
AND REFERRED TO COMMITTEE ON
APPROPRIATIONS. GRAYSON AYE
GRAYSON AYE CHAN. CHAN I CAN'T
CAN I CERVANTES CERVANTES AYE
CHOI CHOI HI MY FONG HI MIKE
FONG AYE GABRIEL. WENT NEWMAN HI
PETRIE-NORRIS. PETRIE-NORRIS NOT
VOTING STONE WICKS WILSON WILSON
I THAT HAS EIGHT VOTES. THIS
BILL GETS OUT AND WE WILL HOLD
IT OPEN FOR A FOR ABSENT MEMBERS
EIGHT VOTES THE TWENTY. WE WILL
NOW MOVE TO A FILE ITEM NUMBER
TWO. AB TWENTY EIGHT FORTY NINE
THE RECOMMENDATION IS DUE PASSED
TO THE COMMITTEE ON LABOR AND
EMPLOYMENT AND WE'RE CALLING
FORMER ASSEMBLYMEMBER BONTA. AND
WHEN YOU ARE READY FOR PLEASE
BEGIN WITH YOUR OPENING
STATEMENT. ALL. THANK YOU CHAIR
AND MEMBERS- AB TWENTY EIGHT
FORTY NINE THE PROMOTE OWNERSHIP
BY WORKERS FOR ECONOMIC RECOVERY
OR THE POWER ACT WOULD ESTABLISH
THE ASSOCIATION OF COOPERATIVE
LABOR CONTRACTORS TO PROMOTE
EQUITABLE ECONOMIC DEVELOPMENT
REDUCE INEQUALITY AND CREATE
SUSTAINABLE PATHWAYS TO LIVING
WAGE JOBS THROUGH WORKER OWNED
COOPS. UNFORTUNATELY THANK YOU
SECOND UNFORTUNATELY THE
STRUCTURE OF THE WORKER COOPS
REQUIRES EXTENSIVE LEGAL TAX AND
THE GOVERNANCE EXPERTISE
PRESENTING A HUGE COST FOR
ENTERPRISE IN WORKERS. AB TWENTY
EIGHT FORTY NINE SEEKS TO LEVEL
THE PLAYING FIELD BY REDUCING
BARRIERS FOR WORKER COOPS BY
SABOTAGING A VOLUNTARY MEMBER
BASED MUTUAL BENEFIT CORPORATION
TO ASSIST AND THEREFORE IN THEIR
FORMATION AND OPERATION. THE
ASSOCIATION OF COOPERATIVE LABOR
CONTRACTORS WILL SERVE AS A
WORKER DIRECTED RESOURCES FOR
TECHNICAL ASSISTANCE AND ALLOW
FOR ECONOMIES OF SCALE FOR
PAYROLL AND OTHER TYPICAL
EMPLOYER FUNCTIONS MEMBERS OF
THE ASSOCIATION ELECT TO MEET
HIGH MINIMUM LABOR STANDARDS. ON
WECHAT PATRIOT WE JUST PAY
TRANSPARENCY RETIREMENT SAVINGS
HEALTHCARE AND OTHER BENEFITS
AND IN RESPONSE THEY RECEIVE
STATE AND LOCAL TAX RELIEF
CONSISTENT WITH CALIFORNIA'S
CREDIT UNION LAWS. AS ARE UNEVEN
ECONOMIC RECOVERY CONTINUES AB
TWENTY EIGHT FORTY NINE GIVES
WORKERS THE POWER TO TAKE
OWNERSHIP OF THEIR FUTURE AND
PROVIDES FOR A MORE INCLUSIVE
PROSPERITY THROUGHOUT
CALIFORNIA. THANK YOU AND IS
WITNESSES TODAY I HAVE DENISE AT
TWO TO GET EIGHT WITH THE
STATE'S BOTH THE SEIU. UNITED
HEALTHCARE WORKERS AND KIRK
BARTON A PRESIDENT FOUNDER AND
GENERAL MANAGER OF A SLICE OF
NEW YORK WHICH HAS BEEN A WORKER
CAUGHT SINCE. TWENTY SEVENTEEN
AND WHO IS PROVIDING TESTIMONY
REMOTELY. STUDENTS IS TO GET A
MAYBE. I THANK YOU TERRY MEMBERS
DENISE TO GOT A WITH SEIU UNITED
HEALTHCARE WORKERS OF I'D LIKE
TO THANK THE COMMITTEE STAFF IN
PARTICULAR FOR ALL OF THEIR WORK
ON THIS LEGISLATION. A WORKER
COOPS PRESENT AN INCREDIBLE
OPPORTUNITY TO EXPAND PATHWAYS
TO LIVING WAGE JOBS WITH
BENEFITS WHILE ALSO HAVING A SAY
IN THE DIRECTION OF THE
BUSINESS. THIS MODEL IS NOT ONLY
GOOD FOR WORKERS BUT ALSO HAS
BEEN SHOWN TO BE MORE ABLE TO
WEATHER ECONOMIC DOWNTURNS THAN
TRADITIONALLY INCORPORATED
BUSINESSES- THIS RESILIENCE HAS
BEEN ATTRIBUTED TO THE FACT THAT
WORKER OWNERS. ARE MORE IN TUNE
WITH WHAT IS HAPPENING ON THE ON
THE GROUND ALLOWING THEM TO
PIVOT QUICKLY- AND LEADING TO
FEWER LAYOFFS- STATE INVESTMENT
IN SUPPORT OF THE HYBRID MODEL
WOULD BE OF GREAT PUBLIC BENEFIT
PAVING THE WAY FOR MORE
CALIFORNIANS TO REACH ECONOMIC
PROSPERITY- I'LL I'LL PASS MY
TIME TO KIRK MARTIN GENERAL
MANAGER AND- AND FOUNDER. OF A
SLICE OF NEW YORK- TO SPEAK TO
HISEXPERIENCE STARTING AND
OPERATING A WORKER CALL UP- BUT
HAPPY TO ANSWER ANY TECHNICAL
QUESTIONS. THANK YOU FOR YOUR
TESTIMONY MODERATOR WE YOU
CONNECT US WITH MISTER MARTIN.
THANK YOU THEIR LINE OF OPEN.
YEAH HI THANK YOU GOOD AFTERNOON
MY NAME IS KURT MARC AND I AM
THE FOUNDER AND GENERAL MANAGER
OF A SLICE OF NEW YORK A PIZZA
SHOP IN SANTA CLARA AND
SUNNYVALE. MY WIFE MARGARET NICE
OUR BUSINESS IN TWO THOUSAND SIX
GREW ITS SECOND LOCATION TWENTY
ELEVEN THANK YOU FOR TO WORK
COOPER TO TWENTY SEVENTEEN WHEN
I TALK TO FRIENDS COLLEAGUES
ELECTED OFFICIALS ABOUT OUR
BUSINESS MODEL THERE'S OFTEN
CONFUSION OR GLAZED OVER NOT TO
SAY. YEAH THAT SOUNDS GREAT BUT
HAVING NO IDEA WHAT IT MEANS THE
REAL TAKEAWAY ANYONE NEEDS TO
KNOW ABOUT A WORKER COOPERATIVE
IS DEMOCRATIC GOVERNANCE. NOT TO
BE CONFUSED WITH A OPERATIONS.
AS A WALK REQUIRE. AFFECTED YOUR
CREATED IT'S- AN- MENTALITY FOR
INDIVIDUALS ENROLLED THAT ARE
CONSIDERED REPLACEABLE OR
DISPOSABLE. AS AN OWNER THE
WORKERS CAN DETERMINE WHAT
PRIORITY THE BUSINESS SHOULD
HAVE. HI TO BETTER CARE FOR
THEIR NEEDS AND MOST IMPORTANTLY
GIVE THE WORKERS A VOTE AND
VOICE IN THEIR FUTURE. OUR
WORKER OWNERS CREATE OUR
ORGANIZATION'S FIRST PTO PLAN A
PAID FAMILY LEAVE POLICY FOR ONE
K. PLAN. AND PRIORITIZE HEALTH
AND SAFETY CODE NINETEEN WHICH
ALLOWED THE BUSINESS TO STAY
OPEN PAINFUL. AND MORE ABOUT IT
HERE FOR YEAR- JULY. THEIR MANY
ERROR THE FIRST. THE FOR.
SERVICES WORLD LIKE ATTORNEY
ACCOUNTANTS INSURANCE COMPANIES
AND FINANCIAL INSTITUTIONS I
DON'T KNOW WHAT COSTS ARE FOR
HOW TO PROPERLY SUPPORT THEM.
EVERY YEAR I NEED TO BATTLE MY
INSURANCE COMPANY FOR LITERALLY
MONTHS WHEN THEY PERFORM THEIR
WORKERS COMPENSATION AUDIT. THEY
DON'T KNOW WHAT PETER DID IT IS
OR HOW TO APPLY TO THEIR
POLICIES. OR CREDIT CARD
COMPANIES THAT REQUIRE A
PERSONAL GUARANTEE ON A COMPANY
CARD EVEN THOUGH THERE IS NOT A
MAJORITY OWNER. FOR THE
COMMERCIAL LANDLORD THEY WANT TO
CONTINUE MY PERSONAL GUARANTEE.
THE CHALLENGES NEED TO BE
ADDRESSED BUT THAT MORE PROGRAMS
IN AWARENESS THERE IS LITERALLY
NO CHANCE CAPITAL ONE CITIBANK
WILL EVER CARE ABOUT MY CALL UP.
BIGGEST ONE SINGLE PROJECT. IN
WE NEED MORE STATE AND FEDERAL
PROGRAMS THAT FOCUS ON WHAT FOR
PROPERTIES EMPLOYEE OWNERSHIP.
RAISING AWARENESS. AND THE POWER
AFTER THE HELP ADVANCE THIS
EFFORT. THANK YOU FOR ALLOWING
ME TO SHARE MY THOUGHTS TODAY
AND I'M ALWAYS THE BILL FOR ANY
FOLLOW UP QUESTIONS OR
CONVERSATIONS. AND THANK YOU FOR
YOUR TESTIMONY. ARE THERE ANY
WITNESSES AND SUPPORT IN THE
HEARING ROOM. SEEING AND HEARING
NINE MODERATOR OTHER ANY
WITNESSES IN SUPPORT ON THE
PHONE. THANK YOU IF YOU WISH TO
SPEAK IN SUPPORT PLEASE PRESS
ONE THEN ZERO AT THIS TIME. I DO
HAVE ONE IN Q. IT'LL JUST BE ONE
MOMENT FOR THAT COMMENT THANK
YOU. NAME AFFILIATION AND
POSITION ONLY PLEASE.
ONE MORE MOMENT FOR THIS COMMENT. IT LOOKS LIKE THEY JUST I WENT
OUT OF Q. SO I HAVE NO QUESTION
OR NO COMMENTS OVER THE PHONE
THANK YOU MODERATOR WE WILL MOVE
TO WITNESSES IN OPPOSITION WE DO
NOT HAVE ANY PRIMARY WITNESSES
IN OPPOSITION THAT ARE LISTED SO
WE WILL MOVE TO THE PUBLIC ARE
THERE ANY WITNESSES IN
OPPOSITION IN THE HEARING ROOM.
SEEING AND HEARING NON MODERATOR
OTHER ANY WITNESSES IN
OPPOSITION ON THE PHONE. THANK
YOU IF YOU WISH TO SPEAK IN
OPPOSITION PLEASE PRESS ONE IF
AND ZERO AT THIS TIME. I HAVE NO
COMMENT THANK YOU THANK YOU
MODERATOR WE WILL BRING IT BACK
TO THE COMMITTEE FOR QUESTIONS
AND OR COMMENTS. WE ALREADY HAVE
A MOTION BY ASSEMBLY MEMBER
BAUER K. AND A SECOND BY
ASSEMBLY MEMBER PETRIE-NORRIS.
SEE NO QUESTIONS OR COMMENTS
FROM COMMITTEE MEMBERS. AUTHOR
WOULD YOU LIKE TO MAKE A CLOSING
STATEMENT THANK YOU CHAIRMAN
MEMBERS I RESPECTFULLY REQUEST
YOUR RIVAL. THANK YOU FOR THAT
AND SECRETARY WILL YOU PLEASE
CALL THE ROLL. AB TWENTY EIGHT
FORTY NINE D. PASSER FOR TO
COMMITTEE ON LABOR AND
EMPLOYMENT. RECENT AYE GRAYSON
AYE CHAN ERA CAN BEAR CAN I
CERVANTES CERVANTES I CHOI. CHOI
A NO. MIKE FONG BUT MIKE FONG I
APRIL. WHEN NO PETRIE-NORRIS.
PETRIE-NORRIS I STONE. WICKS
WILSON WAS THE NIGHT THAT HAVE
SIX BOTH OF CHEN. AND CHEN NO.
YES SIX FOLKS THE THIRD HAS SIX
VOTES AND SO WE WILL HOLD IT
OPEN FOR ABSENT MEMBERS. WE WILL
MOVE TO FILE ITEM THREE AB.
TWENTY THREE EIGHTY. AT THE
WRECK RECOMMENDATION IS TO PASS
TO COMMITTEE ON APPROPRIATIONS
ASSEMBLY MEMBER MAIENSCHEIN WHEN
YOU ARE READY YOU MAY BEGIN.
SECOND WE HAVE A MOTION BY PARA
QUE ON AND A SECOND FROM
PETRIE-NORRIS TAKE NOTE OF THAT
WITH THAT WITH THAT SUBTLE HINTS
I WILL- THAT WILL. AUGMENT MY
NOTES ARE- I'M HERE PRESENT AB
TWENTY THREE EIGHTY WHICH AIMS
TO PROTECT CALIFORNIA CONSUMERS
FROM PREDATORY LOANS. ANY OF
THESE LOANS ARE PREDATORY IN
NATURE AND WITH HIDDEN FEES AND
EXORBITANTLY HIGH INTEREST RATES
SOMETIMES OVER AND ABOVE A
HUNDRED PERCENT. AB TWENTY THREE
EIGHTY WOULD PROHIBIT A
CALIFORNIA FINANCING LAW
LICENSEE FOR MAKING CONSUMER
LOAN FOR THE PURPOSE OF
PURCHASING A DOG OR A CAT IF
THAT LOAN IS OFFERED ARRANGED.
OR FACILITATED BY MERGING A
RETAILER WITH ME TODAY AND
SUPPORT IS HAGUE WITH
THE ANIMAL LEGAL DEFENSE FUND.
THANK YOU. THIS HEY YOU MAY
BEGIN. THANK YOU CARE AND
NUMBERS MY NAME IS JENNIFER
HAGUE WITH THE ANIMAL LEGAL
DEFENSE FUND AND WE ARE PROUD TO
BE THE SPONSOR AT TWENTY THREE
EIGHTY OVER THE PAST FOUR YEARS
WE'VE WORKED WITH OUR COALITION
PARTNERS AND THE LEGISLATURE TO
RESTRICT THE RETAIL SALE OF DOGS
AND CATS AND BRICK AND MORTAR
STORES ACROSS THE STATE CUTTING
OFF THAT CHANNEL OF THE PUPPY
MILL PIPELINE. HOWEVER THESE
EFFORTS HAVE NOT YET ADDRESSED
ONLINE SALES WHERE BAD ACTORS
CAN STILL OPERATE SOME ONLINE
RETAILERS OFFER FINANCING FROM
LENDERS THAT KURT CALIFORNIA
CONSUMER PROTECTION LAWS AND
OFFERED BONE BUT THE CORPORATE
INTEREST RATES AND HIDDEN FEES
SUCH PREDATORY LOANS PROVIDE
OUTLETS FOR PUPPY AND KITTEN
MILLS TO SELL ANIMAL PER
THOUSANDS OF DOLLARS TO
CONSUMERS WHO MIGHT OTHERWISE
NOT BE ABLE TO AFFORD THEM.
THESE LOANS AS NOTED IN THE
COMMITTEE'S ANALYSIS HAVE BEEN
DISCOVERED ACROSS THE COUNTRY
WITH INTEREST RATES AS HIGH AS A
HUNDRED AND THIRTY PERCENT
ANNUALLY. ART OF THE ONGOING.
INTO THIS ISSUE A OKAY ASKING.
WITH AN INDEPENDENT LEGAL
INVESTIGATORS TO ATTEMPT TO
PURCHASE A COPY THROUGH ELEVEN
ONLINE RETAILER SUSPECTED OF
OFFERING THESE PREDATORY
FINANCING OPTIONS. IN MOST
INSTANCES THE INVESTIGATING FIRM
WAS ABLE TO SUCCESSFULLY SECURE
A CONTRACTOR FINANCING USING A
CALIFORNIA ADDRESS. IN AS LITTLE
AS TEN MINUTES. ONE SUCH
CONTRACT CAME WITH A SEVENTY
THREE POINT 7% INTEREST RATE.
AND TURNED A TWENTY FIVE HUNDRED
DOLLAR LOAN INTO MORE THAN SIXTY
FIVE HUNDRED DOLLARS IN TOTAL
COST. THE EXHIBIT INTEREST RATES
AND FEES OF THESE MONTHS TAKE
ADVANTAGE OF CONSUMERS WHO ARE
SIMPLY LOOKING TO BRING A PET
INTO THEIR LIVES. CAN RESULT IN
FINANCIAL INSTABILITY FOR THE
BUYERS AND BY EXTENSION CAN HAVE
NEGATIVE CONSEQUENCES FOR THE
PET BEING PURCHASED. AB TWENTY
THREE EIGHTY SIX TO HELP PREVENT
THIS FROM HAPPENING BY
PROHIBITING RETAILERS FROM KEEP
ENGAGING IN THESE RELATIONSHIPS
WITH LENDERS. AND THE SOLIDITY
ACCESS TO BE PUT PREDATORY
LOANS. LDF RECOGNIZES THE
COMPLEXITY OF REGULATING THIS
ISSUE AND IT KNOWLEDGE IS THAT
THIS IS ONE COMPONENT OF THE
LARGER NATIONAL CONVERSATION
SURROUNDING RENTAL BANKS. WE
THANK THE AUTHOR COMMITTEE STAFF
AND STAFF AT THE FBI FOR THEIR
TIME ENGAGING IN CONVERSATION
BUT HELPING TO STRENGTHEN OUR
ORIGINAL PROPOSAL. AFTER I VOTE
AS WE SEEK TO MAKE THIS GREAT
STEP TOWARD GREATER PROTECTIONS
FOR CONSUMERS AND MARK
FINANCIALLY STABLE HOMES FOR
PETS. THANK YOU AND I'M HAPPY TO
ANSWER ANY QUESTIONS YOU MAY
HAVE AND THANK YOU FOR YOUR
TESTIMONY ARE THERE ANY
WITNESSES. IN SUPPORT IN THE
HEARING ROOM. SEEING AND HEARING
NONE MY- OTHER ANY WITNESSES IN
SUPPORT ON THE PHONE. THANK YOU
IF YOU WISH TO SPEAK IN SUPPORT
PLEASE PRESS ONE THEN ZERO AT
THIS TIME. AND TWENTY FOUR
PLEASE GO AHEAD. HI MY NAME IS
NICHOLAS DOCKET REPRESENTING
SOCIAL COMPASSION IN LEGISLATION
IN SUPPORT. Q. I HAVE NO FURTHER
COMMENT THANK YOU THANK YOU
MODERATOR WE WILL GO TO
OPPOSITION WE DO NOT HAVE ANY
PRIMARY WITNESSES IN OPPOSITION
LISTED SO WE WILL GO TO THE
PUBLIC ARE THERE ANY WITNESSES
IN OPPOSITION IN THE HEARING
ROOM. SINGING HEARING NINE
MODERATE ARE THERE ANY WITNESSES
IN OPPOSITION ON THE PHONE. IF
YOU WISH TO SPEAK IN OPPOSITION
PLEASE PRESS ONE THEN ZERO AT
THIS TIME. I HAVE NO COMMENT
THANK YOU THANK YOU MODERATOR
OTHER QUESTIONS OR COMMENTS FROM
COMMITTEE MEMBERS. DR CHOI. YEAH
A THINK I TOTALLY UNDERSTAND-
INTENT BUT I WAS WONDERING IF I
THIS BILL IDEA WAS SO PROMPTED
BY YOU OR EXPERIENCE OR SOMEBODY
YOU KNOW ABA ON. MMHM WHAT THE
PROMPTED YOU TO COME UP WITH
THIS BILL JUST MIGHT WORK IN
THIS AREA OVER BOTH MY YEARS ON
THAT SAN DIEGO CITY COUNCIL AND
THEN AS AN ASSEMBLY MANY ANYONE
THOUGH WHO BORROWED THE MONEY.
AND THE PETS WERE MISTREATED.
ANY PARTICULAR LIKE A PARTICULAR
INDIVIDUAL THAT CONTACTED ME NOW. OKAY I'M IN THE PAPER WITH THE
NO FINANCIAL ABILITY AND THE
MAKING ALONE- HAS A POTENTIAL-
BUT- I WAS SO CURIOUS ABOUT IT
THE WHAT IF FIVE FOR SOMEBODY.
YOU KNOW AFTER KNOWING. THAT
THEY CANNOT. MCALOON FOR
PURCHASING. THE OPRAH CAT SAID
THEY CAN LIVE ISSUED RIGHT AND
THAT THEY THEY BY. HOW JOURNAL
IS SOME I DON'T KNOW IF I
UNDERSTOOD YOUR QUESTION THERE
WERE WHAT'S YOUR DATA IF YOU
WANT TO MODERATE ICE IF A
CONSUMER LIES. WHAT THE LOAN
WAS- A- ARE NOT INTENDED FOR
ADULT WHAT CATS. OKAY SO WHAT'S
YOU YOU MAY ADDRESS AT A NEW
CLOSING IF YOU WOULD WAY I'M I'M
SURE I UNDERSTAND THE QUESTION
SO. IF A CONSUMER LIES. YEAH IN
MAKING A LOAN APPLICATION THE
INTENT OF THE BILL. THE AFTER
KNOWING THAT THAT THIS IS A
LEGAL. YEAH MISTER CHAIR AWESOME
BUT STILL WITH THE STRATEGIES ON
BEHALF OF ANIMAL LEGAL DEFENSE
FUND AS WELL AND I THINK THAT'S
SOMETHING OVER TWENTY A POINT
HERE THAT WE'RE NOT LOOKING TO
GET INTO THE- NITTY GRITTY
DETAILS AS TO WHY LENDERS MAKING
THIS- IF YOU'RE ON A- WEBSITE TO
PURCHASE A CAT OR A DOG PRETTY
OBVIOUSLY IF YOU'RE GOING TO
FINANCING THAT THAT'S THE
PURPOSE OF THAT FINANCING- IF
YOU WERE TO GO TO SAY A LOCAL
BRICK AND MORTAR BANK OF AMERICA
OR A- YOU KNOW WHATEVER YOUR
BANKING INSTITUTION IS- THEY'RE
NOT GOING TO ASK IN THIS
PARTICULAR INSTANCE AND SO
THERE'S NOT A NECESSARILY THAT
SAME LEVEL OF- HAVING GAUGE
MINT- WHICH I THINK IS GETTING
TO THE POINT THAT YOU'RE ASKING
THERE. ARE MAYBE IF YOUR OTHER
POINT IS THAT. IT'S IF SOMEBODY
LIES THERE IS THERE IS. IF YOU
LIVE ON DOCUMENT THERE'S THINGS
THAT CAN HAPPEN TO FOR LINE ON
ONE DOCUMENT. SO I MEAN I THINK
THAT WOULD BE ADDRESSED
SEPARATELY IF YOU'RE TALKING
ABOUT A CONSUMER WANTING TO LIE
IT WOULD BE THE SAME AS AT THE
CONSUMER. LINE ON A MORTGAGE
DOCUMENT WHATEVER ELSE THERE'S
REMEDIES THAT. WHAT HAPPENED TO
THAT INDIVIDUAL FOR ATTEMPTING
TO BREAK THE LAW DO SOMETHING
DISHONEST IF THAT'S WHAT YOU'RE
ASKING I'M AGAIN I'M NOT TOTALLY
SURE WHAT YOU'RE ASKING.
OBVIOUSLY I DON'T KNOW THE%
DETAILS ABOUT WHAT AT THIS BILL
WILL DO BUT THEY SENT. THE THAT
WHEN. WHEN CONSUMER- MAKES A
LOAN. TO PURCHASE A PATH THAT
THE PETS ARE NOT GONNA BE
COLLATERAL. WHEN YOU BUY A
HOUSE. THE HOUSE IS A COLLATERAL
SO WE NORTH AND THEN THE EXACTLY
KNOWLES. SO THAT'S WHY. HOW HOW
IS E IT WOULD HOW ABOUT DOCTOR
CHOI IF I MAY I THINK WITH THE
BILL ADDRESSES IS THE
RELATIONSHIP BETWEEN A LENDER
FINANCIAL INSTITUTION AND THE
RETAILER. OF THE OF THE PET. AND
SO WHAT THEY'RE SAYING IS THAT.
THERE CAN'T BE THIS RELATIONSHIP
OF A RETAILER SOLELY GIVING
LOANS OUT. AT THE TIME OF
PURCHASE OF A PET IS THAT. HOW I
UNDERSTAND THE BILL TO. CORRECT
OKAY SO YOU COULD STILL GO TO
YOUR PERSONAL FROM THE WRIST
RETAILERS YES SO YOU COULD STILL
GO TO YOUR BANK AND PULL OUT A
LOAN. AND GO SKINNER WHATEVER
YOU WANT TO SPEND IT ON. AND I
DON'T WANNA SPEAK ON NOW THAT'S
THERE THAT I THINK THAT'S- SPOT
ON ON BEHALF OF THE AUTHOR YEAH.
BUT I KNOW THAT E HAVE TO OTHER
MEMBERS AT QUESTIONS DR TROY DO
YOU HAVE. ANY OTHER QUESTION. OR
CONCERN I'M IN INTENT IS GOOD
BUT THE AYE HE- ASKED THE FIRST
QUESTION WHETHER THERE WAS ANY.
EXAMPLES. OF- YOU KNOW.
MISTREATING OF ANY SAYS JUST BE
. THE LOAN WAS TO ME THAT BUT
USE THAT YOU DIDN'T HEAR SEE I
DON'T KNOW THERE WOULD. SOME
THAT THIS LOAN WOULD. IN ANIMAL
ABUSE I'M I'M NOT MAKING THAT
CONNECTION. SO THAT IS A
QUESTION WHAT WHAT THIS ORDER.
THIS BILL OR SOFTWARE YOU KNOW
SO TRYING TO SOLVE THE- PROBLEM
THAT EXISTED IT WOULD CERTAINLY
HELP SOLVE YOU ESSENTIAL USER
YES LOANS IN IN THE INSTANCE OF
BUYING A PAT. FOR EXAMPLE IF
THERE'S LIKE POINT OF SALE
PRESSURE. IF YOU KNOW I WILL
SPEAK FOR HIM MYSELF WITH MY
DAUGHTERS YOU KNOW MY DAUGHTER'S
WOULD. LEAD ME TO GET THAT PUPPY
EVEN IF THE INTEREST RATE WAS A
HUNDRED PERCENT. THEY BE ALL FOR
THAT. YOU KNOW SO NOW WOULD THAT
BE A GOOD THING TO DO I WOULD
SAY FOR MOST PEOPLE A 100%
INTEREST FOR A LOAN. IS A REALLY
BAD THING TO DO SO IT'S TO SORT
OF THOSE SITUATIONS EXIST WHERE
YOU HAVE A CUTE PUPPY AND- YOU
KNOW TWO YOUNG DAUGHTERS IT MAY
BE REALLY WANT THAT YOUNG PUPPY
SO THAT WOULD BE. I THINK- A
SUITABLE EXAMPLE FOR YOU. THANK
YOU. THANK YOU. ASSEMBLY MEMBER
OF OUR CAMP I'LL BE VERY THANK
YOU AND I WANT TO THANK THE
AUTHOR AND I THINK HE'S REALLY
GETTING AT SOMETHING IMPORTANT
WITH HIS COMMENTS AROUND
PREDATORY LENDING IN THIS SPACE
BUT I WANTED TO. RESPOND TO
SOMETHING THAT I HEARD THE
SUPPORT SAY IN THEIR COMMENTS
WHICH IS- THAT PERHAPS THESE ARE
NOT HOMES THAT PETS SHOULD BE
AND I WANT TO TAKE ISSUE WITH
THAT BECAUSE I ACTUALLY DON'T
AGREE WITH THAT I THINK THE
BREAK THAT ANIMALS BRING JOY TO
FAMILIES ACROSS THE FINANCIAL
SPECTRUM AND I THINK YOU AND I
ARE BOTH HUGE SUPPORTERS OF
ADOPTION AND I THINK IT'S A
BETTER OPTION AND THAT'S WHY
SUPPORT THIS BILL BUT I FOUND
THAT ACKERMAN ACTUALLY VERY
OFFENSIVE. THANK YOU. THANK YOU
VERY MUCH. THOSE COMMENTS ARE
THERE ANY OTHER QUESTIONS OR
COMMENTS FROM COMMITTEE MEMBERS.
SEEING THEN WE WILL TURN TO THE
AUTHOR WOULD YOU LIKE TO MAKE A
CLOSE. THANK YOU VERY MUCH MR
CHAIRMAN SPECTER REQUESTED I
ABOUT. THANK YOU FOR THAT WE DO
HAVE A MOTION AND A SECOND
SECRETARY PLEASE CALL THE ROLL.
AB TWENTY THREE EIGHTY. DO PASS-
FOR TO COMMITTEE ON
APPROPRIATIONS GRAYSON. AYE
GRAYSON AYE CHAN. CHAN I. CAN'T
THERE CAN I CERVANTES. CERVANTES
AYE CHOI. CHOI HI MY FONG I
THANK FONG AYE GABRIEL. WHEN I
WHEN I PETRIE-NORRIS
PETRIE-NORRIS I STONE. WICKS
WILSON WAS THE NIGHT THE BILL
HAS NINE VOTES THE BILL HAS NINE
VOTES IN THE GETS OUT WE WILL
HOLD IT OPEN FOR ABSENT MEMBERS
THANK YOU MISTER CHAIRMAN THANK
YOU SOME REMEMBER MAIENSCHEIN.
AND- OKAY THE NEXT BILL IN FILE
ORDERS AB FOR EIGHTEEN FORTY THE
RECOMMENDATION IS TO PASS TO THE
COMMITTEE ON APPROPRIATIONS
ASSEMBLY MEMBER IN THIS AREA.
WHEN YOU ARE READY. THANK YOU
YOU MAY- UP CHEN AND WE HAVE A
MOTION BY ASSEMBLY MEMBER BAUER
KM. AND WE HAVE A SECOND FROM
ASSEMBLYMEMBER FONG TAKE NOTICE
I WILL KEEP IT VERY BRIEF- A-
FIRST ONE. PROFUSELY THANKED THE
COMMITTEE THE CHAIR AND THE
STAFF THANK YOU FOR YOUR HELP
AND SUPPORT AND GUIDANCE- THIS
BILL STARTED OUT AS A VERY WELL
INTENDED BILL TO MOVE FORWARD
AND TO EXPAND. YET GIVEN THE
CURRENT- THE VERY RECENT LAWSUIT
EIGHT TO HAS ADDED A BIT OF A
KINK OF DYNAMICS INTO THIS ISSUE
SO I JUST WANT TO CONTINUE
WORKING TOWARDS FINDING
SOLUTIONS AND SEEING HOW WE CAN
GET TORG. OF GOLD'S ENDS- AND
MOVE THIS ISSUE FORWARD SO WITH
THAT I AM JOINED. BY MARC S.
DORIAN WHOSE- ALSO WITNESS
TESTIFYING IN SUPPORT TODAY- TO
WORK ON THE LANGUAGE IN AB
EIGHTEEN FORTY TO ENSURE THAT IT
HAS THE LEGAL STANDING BEYOND
THE GOVERNOR'S SIGNATURE- AND
WITH THAT I'D- LIKE TO ASK HIM
TO SAY A FEW WORDS PLEASE
MODERATOR WILL YOU CONNECT THIS
WITH WITNESS. A LOT OF OPEN.
OKAY ALL RIGHT WELL GOOD
AFTERNOON MEMBERS OF THE BANKING
AND FINANCE COMMITTEE I THANK
YOU FOR THE PLEASURE AND
PRIVILEGE OF ADDRESSING THE
COMMITTEE IN SUPPORT OF THE BILL
AMENDING CALIFORNIA CORPORATIONS
CODE THREE OH ONE POINT FOR THE
UNDERLYING STATUTE AB NINE SEVEN
NINE HAS RECEIVED QUITE A BIT OF
ATTENTION RECENTLY HAVING BEEN
DECLARED UNCONSTITUTIONAL BY THE
LOS ANGELES COUNTY SUPERIOR
COURT. THE COURT CONCLUDED THAT
QUOTE BECAUSE THE STATUTE TREATS
THE SIMILARLY SITUATED
INDIVIDUALS DIFFERENTLY BASED ON
RACE SEXUAL ORIENTATION AND
GENDER IDENTITY. BECAUSE THE USE
UP SUSPECT CATEGORIES IS NOT
JUSTIFIED BY ANY COMPELLING
STATE INTEREST. AND BECAUSE THE
STATUES NOT NARROWLY TAILORED TO
SERVE THE INTERESTS OFFERED THE
STATUTE VIOLATES THE EQUAL
PROTECTION CLAUSE OF THE
CALIFORNIA CONSTITUTION. I THINK
IT'S IMPORTANT TO NOTE THAT THE
STATUTES RULING WAS DRIVEN BY
THE RECORD PRESENTED ANY
IDENTIFIED NUMEROUS INSTANCES
WHERE THERE WAS INSUFFICIENT
EVIDENCE TO SUPPORT THE
SECRETARY'S POSITION. THAT THE
STATE OF CALIFORNIA HAS A
COMPELLING INTEREST IN PROMOTING
DIVERSITY AND REMEDIATING
DISCRIMINATION BY CALIFORNIA
CORPORATIONS WHEN SELECTING
MEMBERS OF THE BOARD. SORT OF
THE OPINION LEAVE US. FIRST WE
NEED TO BE CLEAR THAT THE COURT
DID NOT RULE THAT UNDER NO
CIRCUMSTANCES CAN NINE SEVEN
NINE SURVIVE A CONSTITUTIONAL
CHALLENGE RATHER THE OPINION
TELLS US WE NEED TO DO MORE
HOMEWORK. THAT WE WANT TO PROVE
THAT TE STATUTE DOES NOT
VIOLATE THE CONSTITUTION YOU
MUST DEVELOP AND PRESENT
STRONGER EVIDENCE. FOR EXAMPLE.
EVIDENCE UST BE PRESENTED WHICH
INFORMS THE COURT OF THE
IDENTITY OF THE REGULATED
COMPANIES. STRONGER EVIDENCE
MUST BE PRESENTED WHICH
DEMONSTRATES THAT THE BOARD
SELECTION PROCESS IS
DISCRIMINATORY AND THAT THE
LEGISLATURE SERIOUSLY CONSIDERED
OR ATTEMPTED OTHER INTERMEDIATE
AND RACE NEUTRAL MEASURES TO
ACHIEVE THE GOAL FOR DIVERSITY.
AND MOST IMPORTANT OF ALL
EVIDENCE MUST BE PRESENTED WHICH
JUSTIFIES PREFERENTIAL TREATMENT
FOR EACH GROUP IDENTIFIED IN THE
STATUTE INCLUDING THE ADDITIONAL
GROUPS PROPOSED IN THE AMENDMENT
. WHAT THAT EVIDENCE IS SECURED
AND PRESENTED THE BILL SHOULD
PASS MUSTER AND NOT BE FOUND IN
VIOLATION OF THE EQUAL
PROTECTION CLAUSE. AND IDEA-
APPRECIATE THE OPPORTUNITY TO
SHARE THOSE TALKS WILL BE
PLEASED TO ANSWER ANY QUESTIONS
ANYONE MAY HAVE. THANK YOU FOR
THAT TESTIMONY. AND WE WILL NOW
MOVE FORWARD WITH- SUPPORT FROM
THOSE IN THE HEARING ROOM. SAME
HEARING NONE MODERATOR ARE THERE
ANY WITNESSES ON THE PHONE IN
SUPPORT. THANK YOU IF YOU WISH
TO SPEAK IN SUPPORT PLEASE PRESS
ONE THEN ZERO AT THIS TIME. I
HAVE NO COMMENT THANK YOU. THANK
YOU WE WILL NOW MOVE TO
WITNESSES IN OPPOSITION WE DO
NOT HAVE ANY PRIMARY WITNESSES
IN OPPOSITION LISTED SO WE WILL
MOVE TO THE PUBLIC ARE THERE ANY
WITNESSES IN OPPOSITION IN THE
HEARING ROOM. SEEING AND HEARING
NONE MODERATOR ARE THERE ANY
WITNESSES IN OPPOSITION ON THE
PHONE. THANK YOU IF YOU WISH TO
SPEAK IN OPPOSITION PLEASE PRESS
ONE TO SEVEN ZERO AT THIS TIME.
I HAVE NO COMMENT THANK YOU
THANK YOU MODERATOR BACK TO THE
COMMITTEE FOR QUESTIONS OR
COMMENTS. WE DO HAVE ASSEMBLY
MEMBER POWER CAN PLEASE. YEAH
AND THANK YOU MR THERRIEN FOR
BRINGING THIS AND I JUST WANTED
TO ASK- YOU KNOW I KNOW MANY OF
US OVERWHELMINGLY SUPPORTED MR
HOLDEN'S- PRAYER EFFORT THAT YOU
REFERENCED WAS OVERTURNED BY THE
COURT IN YOUR- WITNESS APTLY
TALKS ABOUT WHAT COULD HAVE
COULD BE DONE TO BOLSTER THAT
EFFORT AS WELL AND I HOPE YOU'LL
WORK WITH HIM TO MAKE SURE THEY
WERE. THE CATEGORIES THAT
INSTRUCT ON BY THE COURT THAT HE
PASSED WILL ALSO BE INCLUDED AND
WHATEVER WE MOVE FORWARD IF WE
FIND A WAY FOR AND- THANK YOU.
AND THEN. IT'LL BE BACK BUT YOU
DO SO. ALL RIGHT THANK YOU ARE
THERE ANY. ASSEMBLY MEMBER
COUNTY PETRIE-NORRIS. THANK YOU
MISTER CHAIR I'M STILL AT HOW
DID YOU DETERMINE THE BLESSED
FIVE- AT THAT UNDERREPRESENTED
COMMUNITIES THAT YOU'VE INCLUDED
IN THIS BILL- WHAT WAS THE
METHODOLOGY FOR THAT AND WHAT
OTHER GROUPS WERE CONSIDERED AN
PERHAPS NOT INCLUDED. SO-
RESEARCHERS AT CORNELL IN TWENTY
TWENTY ONE FOUND THAT ONLY 10%
OF THESE BOARDS THAT ARE
TARGETED OF OUR NON WHITE. AND
SO A LOT OF TIMES THERE ARE
CONSTITUENCIES THAT ARE
IMMIGRANT BASED COMMUNITIES WHO
DON'T HAVE OPPORTUNITIES- TO
ADVANCE AND- BASED ON THE COLOR
OF THEIR SKIN THEY MIGHT
NECESSARILY NOT- RECEIVE A
CERTAIN- WHO STEP BUT DO END UP
PAYING THE PRICE- AND YOU'VE
SEEN THAT HAPPEN. IN FRESNO
YOU'VE SEEN THAT HAPPEN IN LA
AREA OVER THE COURSE OF THE LAST
HUNDRED AND FIFTY YEARS YOU'VE
SEEN VARIOUSDIFFERENT
COMMUNITIES ESPECIALLY MIDDLE
EASTERN COMMUNITIES END UP BEING
TARGETED AND HOUSE THESE
COVENANTS- AND VARIOUS OTHER
FORMS OF DISCRIMINATORY. ACTS
AND SO THIS WAS A WAY OF.
EXPANDING THE DEFINITION MILDLY
TO ALLOW FOR A VERY SMALL
SEGMENT OF COMMUNITY TO BE ABLE
TO BE INCLUDED- SO THAT'S WHERE
IT CAME FROM. THEIR SIDE WERE
THERE ANY GROUPS THAT YOU LOOKED
AT INCLUDING AND THEN DECIDED
NOT TO. BUT NOT NECESSARILY UP
HAPPY TO. WORK WITH YOUR
SUGGESTIONS I DON'T ACTUALLY
HAVE ANYTHING TO MOMENT I JUST
WAS CURIOUS TO. UNDERSTAND HOW
YOU WOULD ARRIVE NOT REAL AT
THAT POINT OKAY NOT REALLY IT
WAS IT WAS TO TARGET TO COMPETE
GROUPS THAT HAVE JUST FALLEN
THROUGH THE CRACKS. BECAUSE THEY
MAY COME ACROSS AS A CERTAIN
GROUP BUT- NEVER END UP GETTING
THE BENEFITS OF THAT GROUP.
PERCENT RIGHT THANK YOU. ARE
THERE ANY OTHER QUESTIONS OR
COMMENTS FROM COMMITTEE MEMBERS
. ALL RIGHT I SEE NONE WE WILL
TURN TO THE AUTHOR FOR CLOSING
STATEMENT I'D AGAIN THANK YOU
VERY MUCH FOR- THE COMMITTEE'S
WORK WITH MY OFFICE AND WITH ME
ON THIS I LOOK FORWARD TO
CONTINUE WORKING WITH YOU AS WE
MOVE THIS BILL FORWARD. THANK
YOU VERY MUCH. AND. WE HAVE A
MOTION. SO WE DO HAVE A MOTION.
YEAH WE DO HAVE A MOTION AND A
SECOND SO SECRETARY PLEASE CALL
THE ROLL. AB EIGHTEEN FORTY TO
PASS A REFER TO COMMITTEE ON
APPROPRIATIONS. GRAYSON AYE
GRAYSON AYE CHAN. CHEN NOT
VOTING ERA CAN WHERE CAN I
CERVANTES CERVANTES I CHOI. CHOI
NOT VOTING MIKE FONG I THANK
FONG AYE GABRIEL. WHEN. WHEN NOT
VOTING PETRIE-NORRIS
PETRIE-NORRIS I STONE WICKS
WILSON OKAY WILSON HI THE BILL
HAS SIX VOTES THE STORE HAS SIX
SIX VOTES AND WE WILL HOLD IT
OPEN FOR ABSENT MEMBERS I WOULD
LIKE TO RETURN BACK TO THE
CONSENT CALENDAR- FOR MEMBERS
THAT HAVE A RIDE SINCE WE VOTED
ON THAT SECRETARY WILL YOU
PLEASE RE OPENED- CONSENT. AND
CALL FOR. AB TWO TWO SIX NINE D.
PASSER FOR COMING OUT
APPROPRIATIONS. BARRA CAN. BEAR
CAN I. CERVANTES CERVANTES AYE
GABRIEL. STONE WICKS HAS NINE
VOTES. SO HAS NINE VOTES WE WILL
CONTINUE TO HOLD IT OPEN AND I
AM GOING TO CALL FOR. ASSEMBLY
MEMBER PETRIE-NORRIS IF YOU WILL
COME FORWARD IT IS A. B. FILE
ITEM FIVE A. B. 23-14 THE
RECOMMENDATION IS TO PASS AS
AMENDED TO THE COMMITTEE ON JOBS
AND ECONOMIC DEVELOPMENT THE
AMENDMENTS ARE LISTED IN THE
ANALYSIS ASSEMBLY MEMBER
PETRIE-NORRIS WHEN YOU ARE READY
PLEASE BE ADVISED THAT THANK YOU
MISTER CHAIR AND THAT GOOD
AFTERNOON MEMBERS. I AM HERE TO
PRESENT ASSEMBLY BILL 23-14 AND
FIRST I WOULD LIKE TO THANK THE
COMMITTEE STAFF FOR YOUR WORK ON
THIS AND I ACCEPT THE
COMMITTEE'S PROPOSED AMENDMENTS
THIS BILL WOULD ESTABLISH
PROTECTIONS FOR BORROWERS
PARTICIPATING IN THE STATE
TREASURER'S CAL CAP AND I BANKS
SMALL BUSINESS LOAN GUARANTEE
PROGRAM AB 23-14 BUILDS UPON
PAST WORK TO ENSURE THAT
TRANSPARENT PRICING AND TERMS
FOR SMALL BUSINESSES APPLYING
FOR LOANS ARE AVAILABLE TO
BUSINESS OWNERS THIS BILL
REQUIRES LENDERS LENDERS THAT
UTILIZE TAXPAYER MONEY THROUGH
CAL CAP AND THE SMALL BUSINESS
LOAN GUARANTEE PROGRAM. SHABAD
BY SEVERAL IMPORTANT
TRANSPARENCY PROVISIONS I I'D
LIKE TO NOW INTRODUCE MY TWO
PRIMARY WITNESSES HEIDI PICKMAN
FROM THE CALIFORNIA ASSOCIATION
FOR MICRO ENTERPRISE OPPORTUNITY
AND MICHAEL RAPAPORT FRIEND
AXION OPPORTUNITY FUND. HI THANK
YOU CHAIR GRAYSON AND VICE CHAIR
CHEN AND COMMITTEE MEMBERS MY
NAME IS HEIDI PICKMAN I
REPRESENT CAMEO A LITTLE EASIER
TO SAY IT'S THE WORST STATEWIDE
NETWORK OF OVER THREE HUNDRED
AND FIFTY ORGANIZATIONS.
DEDICATED TO FURTHERING MICRO
AND SMALL BUSINESS DEVELOPMENT
IN CALIFORNIA. ENRIC ANNUALLY
ARE MISSION DRIVEN MEMBERS SERVE
ABOUT EIGHTY FOUR THOUSAND VERY
SMALL BUSINESSES WITH TRAINING
BUSINESS AND CREDIT ASSISTANCE
AND RESPONSIBLE LOANS. THESE
FIRMS SUPPORT- CREATE ABOUT A
HUNDRED AND ONE THOUSAND NEW
JOBS IN CALIFORNIA GENERATE A
TOTAL OF SEVEN POINT FIVE
BILLION IN ECONOMIC ACTIVITY. IN
THE COMING MONTHS MANY
ENTREPRENEURS AND SMALL BUSINESS
OWNERS WELL HEAD ONLINE TO LOOK
FOR CAPITAL TO REBUILD FROM THE
OMICRON WAVE OF PANDEMIC OR
START A NEW BUSINESS. AND WHILE
REPUTABLE REPUTABLE ONLINE
LENDERS EXISTS TO OFTEN ONLINE
LENDERS OFFER PROMISES OF
CAPITAL THAT ARE TOO GOOD TO BE
TRUE. AND- MANY TIMES PREDATORY
LOANS THE TRAP ENTREPRENEURS IN
A CYCLE OF DEBT. THIS IS ALSO AN
EQUITY ISSUE AT THE FEDERAL
RESERVE STUDY THAT'S- SMALL
BUSINESS OWNERS OF COLOR MORE
LIKELY TO GO ONLINE TO FIND FAN
I FINANCING THAN THEIR WHITE
COUNTERPARTS. FOR EXAMPLE THE
AFRICAN AMERICAN OWNER OF AN
EAST BAY BURGER JOINT WANTED TO
OPEN A SECOND LOCATION BUT
COULDN'T GET A TRADITIONAL LOAN
FROM HIS BANK. AND HE WENT
ONLINE HE WAS GET HE THOUGHT HE
WAS GETTING A REGULAR- BUT ENDED
UP WITH A PRODUCT THAT WAS
TAKING OUT FIVE HUNDRED FIVE
HUNDRED SEVENTY SEVEN DOLLARS
FROM HIS BANK ACCOUNT. ON A
DAILY BASIS AND THAT'S A REAL
BIG HIT TO SMALL BUSINESS CASH
FLOW. I'M WITH SB TWELVE THIRTY
FIVE WHICH PASSED IN TWO
THOUSAND EIGHTEEN CALIFORNIA
BECAME A LEADER IN PROTECTING
SMALL BUSINESSES. AB TWENTY
THREE FOURTEEN WILL FURTHER THAT
LEADERSHIP AND WE THINK THE
ASSEMBLY WOMAN FOR HER
LEADERSHIP- BY CODIFYING SEVERAL
BEST PRACTICES AND SMALL
BUSINESS FUNDING AND ENSURE THE
STATE IS NOT SUBSIDIZING BAD
BEHAVIOR. THAT'S THE REASON WHY
WE'RE HONORED TO SPONSOR THE
BILL- MICHAEL RAPAPORT FOR THE
TRNSPORTATION. THANK YOU
EVERYBODY IN GOOD AFTERNOON- MY
NAME IS MICHAEL RAPAPORT I'M
PRESIDENT CHIEF OPERATING
OFFICER AT ACTION OPPORTUNITY
FUND- WE ARE A LEADING COMMUNITY
DEVELOPMENT FINANCIAL
INSTITUTION CDFI. WORKING TO
CREATE AN INCLUSIVE HEALTHY
FINANCIAL SYSTEM THAT SUPPORTS
OUR NATION SMALL BUSINESS
OWNERS. WE DO THIS BY CONNECTING
ENTREPRENEURS TO AFFORDABLE
CAPITAL EDUCATIONAL RESOURCES
AND BUSINESS COACHING. I'M HERE
TO SHARE OUR ORGANIZATION
SUPPORT FOR ASSEMBLY MOVING
PETRIE-NORRIS HIS BILL. WHICH
WOULD REQUIRE ANY COMMERCIAL
FINANCING PRODUCTS LEVERAGING
STATE FUNDS TO INCLUDE. SEVERAL
REALLY IMPORTANT FINANCING
RIGHTS AND PROTECTIONS FOR
BORROWERS. L. F. IS BEEN AN
ADVOCATE FOR GREATER
TRANSPARENCY IN SMALL BUSINESS
LENDING FOR. IT SINCE WE BRING.
FOUNDED TWENTY FIVE YEARS AGO
WHERE A FOUNDING MEMBER OF THE
RESPONSIBLE BUSINESS LENDING
COALITION WHICH CREATED THE
SMALL BUSINESS BORROWER BILL OF
RIGHTS. AND WE HELP PASSED
SENATOR GLAZERS S. B. TWENTY
TWELVE THIRTY FIVE AT HOW YOU
MENTION WHICH IS THE FIRST TRUTH
IN LENDING BILL FOR SMALL
BUSINESSES IN OUR COUNTRY. WE'RE
ALSO A LEADING SMALL BUSINESS
LENDER IN THE STATE'S CAL CAP
AND HIGH BANK LOAN GUARANTEE
PROGRAMS. IN FACT WE'VE BEEN ONE
OF THE TOP THREE CAL CAP LENDERS
FOR SEVERAL YEARS. WE'RE REALLY
THRILLED TO SEE THAT THIS BILL
WOULD CALL CODIFY RESPONSIBLE
LENDING PRACTICES LIKE BANNING
THE USE OF CONFESSIONS OF
JUDGMENT REQUIRING THE
DISCLOSURE PREPAYMENT PENALTIES
PART DISPERSAL AND OTHER
IMPORTANT MEASURES.
UNFORTUNATELY WE'VE ALSO SEEN
SMALL BUSINESS OWNERS TECH CAN
GET CAUGHT IN THIS NEVER ENDING.
A CYCLE OF DEBT AS A RESULT OF
NOT REALLY UNDERSTANDING OR
KNOWING THE TERMS OF THE LOANS.
WE HAVE A CLIENT RIGHT HERE IN
SACRAMENTO HER NAME IS DEANNA
IRISH. SHE OWNS WINE TOUR
DRIVERS SHE TOOK ON A TWENTY
FIVE THOUSAND DOLLAR ONLINE LOAN
WHICH ENDED UP COSTING HER TWO
THOUSAND DOLLARS A MONTH.
BECAUSE OF FEES AND INTEREST
THAT WERE WERE REALLY NOT
DISCLOSED WELL. LUCKILY WE WERE
ABLE TO HELP HER REFINANCE WHICH
CUTTER PAYMENTS OF MORE THAN
HALF DOWN TO NINE HUNDRED
DOLLARS A MONTH. HER STORY
DEANNA STORY IS NOT UNCOMMON
UNFORTUNATELY SEVERAL YEARS AGO
WE ANALYZE MULTIPLE ONLINE
FINANCING CONTRACTS THAT CLIENTS
OF OURS BROUGHT TO US. AND WE
FOUND THAT SOMETIMES AVERAGE APR
AS CAN BE A- 94% OR HIGHER AND
IN ONE CASE WE SAW A LOAN THAT
HAD A THREE HUNDRED FIFTY EIGHT
PERCENT. APR IF JUST SOME OF THE
PROTECTIONS LISTED IN THE- IN
THE BILL WERE STANDARD ACROSS
THE INDUSTRY THERE WOULD BE FAR
FEWER OF THESE. SITUATIONS AB
TWENTY THREE FOURTEEN IS ANOTHER
STEP TOWARDS ENSURING GREATER
TRANSPARENCY IN THE INDUSTRY AND
WE ARE GLAD WE BEHIND IT THANK
YOU. THANK YOU THANK YOU VERY
MUCH FOR YOUR TESTIMONY AS WELL
ARE THERE ANY OTHER WITNESSES IN
SUPPORT IN THE HEARING ROOM. C.
NINE MODERATOR OTHER ANY
WITNESSES IN SUPPORT ON THE
PHONE NAME AFFILIATION AND
POSITION ONLY. THANK YOU IF YOU
WISH TO SPEAK IN SUPPORT PLEASE
PRESS ONE THEN ZERO AT THIS TIME. BUT I AM THIRTY ONE PLEASE GO
AHEAD. HI THERE MY NAME IS
BIANCA BLOM QUICKTIME WITH SMALL
BUSINESS MAJORITY IN THE POLICY
DIRECTOR FOR THE STATE AND WE
ARE IN FULL SUPPORT OF 23-14.
THANK YOU I HAVE ONE MORE
COMMENT IN Q. IT'LL JUST BE ONE
MOMENT FOR THAT COMMENT.
LINE THIRTY PLEASE GO AHEAD
DANIEL GUTIERREZ ON BEHALF OF
THE CONSUMER FEDERATION OF
CALIFORNIA IN SUPPORT. THANK YOU
I HAVE NO FURTHER COMMENT THANK
YOU THANK YOU MODERATOR WE WILL
NOW MOVE TO WITNESSES IN
OPPOSITION AND WE DO NOT HAVE
ANY PRIMARY WITNESSES IN
OPPOSITION LISTED SO WE WILL
MOVE TO- OPPOSITION AND PUBLIC.
ARE THERE ANY WITNESSES IN
OPPOSITION IN THE HEARING ROOM
SEEING AND HEARING NONE
MODERATOR OTHER ANY WITNESSES IN
OPPOSITION ON THE PHONE. THANK
YOU IF YOU WISH TO SPEAK IN
OPPOSITION PLEASE PRESS ONE.
ZERO AT THIS TIME. I HAVE NO
COMMENT THANK YOU THANK YOU
MODERATOR BACK TO THE COMMITTEE
ARE THERE QUESTIONS. WE HAVE A
MOTION FROM ASSEMBLY MEMBER
BAUER K. AND A SECOND FROM
ASSEMBLYMEMBER CERVANTES. THANK
YOU IT WAS A T. OKAY THANK YOU. SO WITH THE HELP I DO WANT TO
THANK THE AUTHOR FOR YOUR
THOUGHTFULNESS IN THIS AND
WORKING WITH COMMITTEE- WOULD
LIKE TO- TWENTY FOUR CLOSING
STATEMENT WELL THANK YOU AT. I
THINK WE ALL BELIEVE AND
RECOGNIZE THAT CALIFORNIA SMALL
BUSINESSES REALLY ARE THE HEART
AND SOUL OF CALIFORNIA'S ECONOMY
AND THIS BILL ENSURING THAT
CALIFORNIA SMALL BUSINESS OWNERS
ARE ABLE TO ACCESS CRITICAL
CAPITAL TO GROW THEIR BUSINESSES
TO CREATE GOOD JOBS ACROSS THE
STATE I IN A WAY THAT IS FAIR
THAT IS TRANSPARENT- IS ONE STEP
THAT WE CAN TAKE TO ENSURE THAT
WE CONTINUE TO SUPPORT A VIBRANT
THRIVING SMALL BUSINESS
COMMUNITY ALL ACROSS THE STATE
SO WITH THAT I. RESPECTFULLY ASK
FOR AN AYE VOTE THANK YOU
ASSEMBLY MEMBER AND WITH THAT WE
HAVE A MOTION AND A SECOND WE
WILL CALL FOR REAL SECTOR. AB
TWO THREE ONE FOUR TO PASS AS
AMENDED AND REFER TO COMMITTEE
ON JOBS ECONOMIC DEVELOPMENT AND
THE ECONOMY. GRAYSON AYE GRAYSON
AYE CHAN AYE CHAN AYE PARA CAN.
THERE CAN I CERVANTES. CERVANTES
AYE CHOI. CHOI HI MIKE FONG HI
MY FONG AYE GABRIEL. GABRIEL I
WENT. PETRIE-NORRIS I
PETRIE-NORRIS HI STONE WICKS
WILSON WAS THE NIGHT THE BILL
HAS NINE VOTES THE BILL HAS NINE
VOTES IT'S OUT WE WILL HOLD OPEN
FOR ABSENT MEMBERS THANK YOU
MISTER CHAIR. THANK YOU I WILL
NOW HAND OVER THE GAVEL TO OUR
VICE CHAIR ASSEMBLY MEMBER CHEN
WHO WILL BE RUNNING THE HEARING
WELL I PRESENT. THANK YOU MR
CHAIRMAN THE NEXT DON'T FOLLOW
ORDERS AB EIGHTEEN FORTY ONE THE
RECOGNITION IS TO PASS THE
COMMITTEE ON APPROPRIATIONS.
MISTER CHAIR AT YOUR PLEASURE.
THE BILL HAS BEEN MOVED THERE'S
A SECOND. THANK YOU. THANK YOU
TO THE MOTION AND SECOND TEAM
OVER HERE. I APPRECIATE THAT.
THANK YOU SO MUCH AND GOOD
AFTERNOON TO- MISTER VICE CHAIR
AND COMMITTEE MEMBERS I AM
PLEASED TO PRESENT AT AB
EIGHTEEN FORTY ONE WHICH
REQUIRES AN APARTMENT A
FINANCIAL PROTECTION AND
INNOVATION TO DEVELOP IMPLEMENT
AND ADMINISTER INVOLUNTARY
ONLINE TRAINING PROGRAM FOR
FINANCIAL INSTITUTIONS ON THE
ECONOMIC ABUSE OF VICTIMS AND
SURVIVORS OF INTIMATE PARTNER
VIOLENCE INTIMATE PARTNER
VIOLENCE OCCURS WHEN SOMEONE
HARMS A PERSON WITH WHOM THEY
CURRENTLY OR PREVIOUSLY SHARED
AND EMOTIONALLY OR PHYSICALLY
INTIMATE RELATIONSHIP. A LESS
VISIBLE AND FAR TOO COMMON FORM
OF ABUSE THE SURVIVORS AN
INTIMATE PARTNER VIOLENCE IS
FINANCIAL ABUSE IT CAN TAKE MANY
FORMS INCLUDING AN ABUSER
REDUCING SAVINGS ACCOUNTS OR
ASSETS RESTRICTING ACCESS TO
BANK ACCOUNTS AND INCURRING
COERCED AND FRAUDULENT DEBT IN
FACT FINANCIAL USES ONE OF THE
MAIN REASONS VICTIMS AREN'T ABLE
TO LEAVE ABUSIVE RELATIONSHIPS
THE FINANCIAL DEVASTATION OF
ABUSE MAKES BANKING PRODUCTS ON
AFFORDABLE AND SURVIVORS CANNOT
SAFELY SAVE MONEY NOR ACCESS
FUNDS NECESSARY TO LEAVE.
ECONOMIC ABUSE IS WIDESPREAD BUT
FINANCIAL INSTITUTIONS ARE
SIMPLY NOT TRAINED ON HOW TO
EFFECTIVELY DETECT AND RESPOND
TO IT FINANCIAL INSTITUTIONS
HAVE THE OPPORTUNITY TO
IMPLEMENT SUPPORTED SYSTEMS
PRODUCTS AND TRAINING TO HELP
MILLIONS OF CUSTOMERS BUILD
ASSETS THEY NEED TO KEEP
THEMSELVES AND THEIR FAMILIES
SAFE AB EIGHTEEN FORTY ONE WOULD
REQUIRE THE FBI TO WORK
COLLABORATIVELY WITH SURVIVORS
AND COMMUNITY ORGANIZATIONS TO
DEVELOP AND IMPLEMENT A
VOLUNTARY TRAINING PROGRAM
INTENDED TO AMONG OTHER THINGS
IDENTIFY SUSPECTED ECONOMIC
ABUSE AND INSTRUCTIONS ON HOW TO
REPORT AND RESPOND TO ECONOMIC
ABUSE. BY CREATING THIS TRAINING
PROGRAM CALIFORNIA WILL TAKE THE
NECESSARY STEPS TO SUPPORT AND
UP WITH SURVIVORS OF INTIMATE
PARTNER VIOLENCE AND PROVIDE A
PATHWAY TO FINANCIAL
INDEPENDENCE WITH THAT I WOULDLIKE TO INTRODUCE MY WITNESS
FROM SOCAL SABRI A- DIRECTOR OF
STATE POLICY NERVOUSLY. FREEFORM
THANK YOU HELLO AND GOOD
AFTERNOON COMMITTEE AND CHAIR MY
NAME IS SABRINA HAM AND I'M THE
DIRECTOR OF STATE AND POLICY
ADVOCACY AT FREE FROM AN
ORGANIZATION BASED ON LOS
ANGELES WORKING TO CREATE
PATHWAYS TO LONG TERM SAFETY.
AND FINANCIAL SECURITY FOR
SURVIVORS OF INTIMATE PARTNER
VIOLENCE R. I. P. V. I'M HERE
TODAY TO TESTIFY IN STRONG
SUPPORT OF AB EIGHTEEN FORTY
ONE. 40% OF WOMEN IN CALIFORNIA
WILL HAVE BEEN SUBJECTED TO
INTIMATE PARTNER VIOLENCE IN
THEIR LIFETIME WHICH IS MUCH
HIGHER THAN THE NATIONAL AVERAGE
OF 25% OF WOMEN. IPV SURVIVORS
ARE SUBJECTED TO IMMENSE
FINANCIAL DEVASTATION RELATED TO
THE BEAUCE. INCLUDING JOB LOSS
PROTECT LOSS OF PRODUCTIVITY
HEALTHCARE COSTS DAMAGE PART
PROPERTY AND IN PARTICULAR
ECONOMIC ABUSE IN FACT 99% OF
IPV CASES SURVIVORS ARE ALSO
SUBJECTED TO ECONOMIC BE IT
COULD BE USE BUDGET WHICH
INCLUDES PUTTING SURVIVE ON A
STRICT ALLOWANCE PROVIDING
SURVIVOR FROM GOING TO WORK
INCURRING DEBTS IN A SERVICE
NAME WITHOUT THEIR KNOWLEDGE OR
CONSENT. AND DEPLETING US
FARMERS INCOME AND RESOURCES AND
ACCESSING AND CONTROLLING THEIR
BANK ACCOUNTS IN FACT 58% OF
SURVIVORS AND OUR NETWORK
REPORTED THAT A HARM DOER HAS
MONITORED ACCESS WITHDRAWN FROM
OR OTHERWISE CONTROLLED THEIR
BANK ACCOUNT FURTHER BLACK
INDIGENOUS AND SURVIVORS OF
COLOR ARE THREE TIMES MORE
LIKELY THAN WHITE SURVIVORS TO
REPORT THAT THEY DO NOT HAVE
ACCESS. TO A PROTECTED BANK
ACCOUNT WITHOUT ACCESS TO SAFE
ACCOUNT SURVIVORS ARE FORCED TO
SAVE AND HIDE US SAVE. MONEY AND
DANGEROUS WASTE LIKE HIDING CASH
AROUND THE HOUSE. SURVIVORS NEED
SAFE AND SECURE OPTIONS. SO THAT
THEY CAN SAVE THE MONEY THEY
NEED TO STAY SAFE HE'LL AND
BEGIN TO RECOVER. ONE SURVIVOR
WE WORKED WITHIN OUR NETWORK WAS
THE PRIMARY BREADWINNER IN HER
RELATIONSHIP BUT YOU HAD NO REAL%
ACCESS OR CONTROL OF HER INCOME.
HER HARM DOER FORCED HER TO GET
A PAPER CHECK RATHER THAN A
DIRECT DEPOSIT. AND EVERY PAY
DAY HE WENT WITH HER TO THE BANK
TO KASUR TRACK AND SAID RIGHT
BEHIND HER TO MAKE SURE SHE
CASTS EVERY CENT. AND HE WOULD
IMMEDIATELY TAKE THE CASH OUT OF
HER HAND. FINANCIAL INSTITUTIONS
HAVE THE RESPONSIBILITY TO
PREVENT FRAUD FINANCIAL
EXPLOITATION ABUSE FROM
HAPPENING TO THE CUSTOMERS.
UNFORTUNATELY 64% OF SURVIVORS
IN OUR NETWORK. REPORTS EATING
RECEIVING NO ARE UNHELPFUL
SUPPORT FROM THEIR BANK. WE ARE
SIMPLY ASKING CALIFORNIA TO GIVE
FINANCIAL INSTITUTIONS. THE
TOOLS THEY NEED TO BETTER
SUPPORT. THEIR SURVIVOR
CUSTOMERS. WE THANK ASSEMBLY
MEMBER GRAYSON FOR YOUR
LEADERSHIP ON THIS IMPORTANT
ISSUE. I RESPECTFULLY ASK THE
COMMITTEE FOR YOUR IPHONE THANK
YOU. THANK YOU SO MUCH HER
TESTIMONY. ARE THERE ANY OTHER
WITNESSES IN SUPPORT IN THE
HEARING ROOM. THANK YOU. GOOD
AFTERNOON DANNY KENDALL CUTS ARE
ON BEHALF OF BOTH THE CALIFORNIA
LOW INCOME CONSUMER COALITION
AND THE NATIONAL CONSUMER LAW
CENTER IN SUPPORT. MODERATOR ARE
THERE ANY OTHER WITNESSES IN
SUPPORT OVER THE PHONE. THANK
YOU IF YOU WISH TO SPEAK IN
SUPPORT PLEASE PRESS ONE AND
ZERO AT THIS TIME. NINE TWENTY
ONE PLEASE GO AHEAD. GOOD
AFTERNOON THIS IS ONE OF THE
CALIFORNIA THE CALIFORNIA
COMMUNITY BANKING NETWORK IN
SUPPORT. THANK YOU I DO HAVE ONE
MORE IN Q. JUST ONE MOMENT HERE. FIVE THIRTY TO PLEASE GO AHEAD
. HELLO IS A VALID GREENBERG
TRAURIG REPRESENTING CALIFORNIA
PARTNERSHIP TO END DOMESTIC
VIOLENCE IN SUPPORT. THANK YOU I
HAVE NO FURTHER COMMENT THANK
YOU THANK YOU MADAM MODERATOR WE
DO NOT HAVE ANY PRIMER ONCE IS
OPPOSITION LISTINGS OR NEW MOUNT
ON TO THE PUBLIC ARE THERE
ANYONE IS NOT POSITION IN THE
HEARING ROOM. SEE NON MODERATOR
ARE THERE ANY WITNESSES
OPPOSITION OVER THE PHONE. IF
YOU WISH TO SPEAK IN OPPOSITION
PLEASE PRESS ONE TEN ZERO AT
THIS TIME. I HAVE NO COMMENT
THANK YOU. THANK YOU MODERATOR-
BRINGS BACK TO THE COMMITTEE
FAMILY QUESTIONS COMMENTS. S. C.
NONE- MISTER CHAIR WOULD LIKE TO
CLOSE RESPECTFULLY ASK RIVAL
THANK YOU THANK YOU WE HAVE BEEN
MOVED AND THERE'S A SECOND A
MATTER SECTOR PLEASE CALL THE
ROLL. AB EIGHTEEN FORTY ONE D.
PASSER REFER TO COMMITTEE ON
APPROPRIATIONS GRAYSON. HI
GRAYSON AYE CHAN. CHAN I BEAR
CAN- CAN I CERVANTES. CERVANTES
AYE CHOI. CHOI HI MY FONG I
THANK FONG AYE GABRIEL. GABRIEL
I WENT. PETRIE-NORRIS
PETRIE-NORRIS I STONE STONE I
WICKS WILSON WILSON I THAT BILL
HAS TEN VOTES. THE BILL US
SENATE SAID BILLS OUT THE
RESURGENT. THANK YOU. YES.
WE WILL NOW WE WILL NOW WOULD GO
TO FILE ITEM NUMBER EIGHT. IT IS
AB TWENTY SIX EIGHTY NINE NOTE
THAT THIS BILL IS TESTIMONY ONLY
AND WILL AND WE WILL NOT BE
TAKING A VOTE THE COMMITTEE HAS
BEEN GETTING A LOT OF QUESTIONS
ABOUT CRYPTOCURRENCY WE RECEIVED
CONSTITUENT CALLS FROM THOSE WHO
HAVE BEEN VICTIMS OF FRAUD OR
THEFT. BUT WE ALSO GET A LOT OF
CALLS FROM THOSE WHO ARE EXCITED
ABOUT ITS POTENTIAL TO DISRUPT
FINANCIAL SERVICES I MYSELF HAVE
A LOT OF CONCERNS ABOUT THIS
BILLS APPROACH EVEN THOUGH IT IS
MEANT TO REALLY PROVIDE LEGAL
CLARITY TO PUBLIC AGENCIES AND
PRIVATE SECTOR BUSINESSES. I
THINK WE HAVE A LOT TO WORK ON
OR TO DO FIRST BEFORE WE USE THE
POWER OF THE STATE TO PROMOTE
CRYPTOCURRENCY FOR EVERYDAY USE
HOWEVER I DO WANT TO START- THIS
THIS I DO WANT TO START THE
DISCUSSION BECAUSE THIS IS NOT
GOING TO BE THE LAST TIME THIS
COMMITTEE HEARS ABOUT
CRYPTOCURRENCY. I HAVE A LOT OF
RESPECT TREMENDOUS AMOUNT OF
RESPECT FOR THE AUTHOR AND FOR
THE SUPPORTER I- AND FOR THE
SUPPORT OF THIS BILL I AM
THANKFUL THAT THEY HAVE AGREED
TO COME IN TODAY TO HAVE THAT
DISCUSSION WITH US SO WITH THAT
ASSEMBLY MEMBER CUNNINGHAM WHEN
YOU ARE READY PLEASE BEGIN WITH
YOUR OPENING STATEMENTS THANK
YOU MISTER CHAIRMAN MIRZAI
PRITCHETT THE OPPORTUNITY TO
SPEAK ABOUT MY BILL AB TWENTY
SIX EIGHTY NINE THAT'S FUNNY. AB
ALTHOUGH WE'RE NOT VOTING ON IT
BUT I APPRECIATE IT SURGERY TO
REMOVE IT TOO BUT- AS CURRENTLY
DRAFTED AB TWENTY SIX EIGHTY
NINE WITH A LOT OF PUBLIC OR
PRIVATE ENTITIES WITHIN THE
STATE OF CALIFORNIA TO ACCEPT
VIRTUAL CURRENCY FOR GOODS OR
SERVICES IF THEY CHOSE TO DO
THAT IS TO BE PERMISSIVE IN
NATURE ONLY. AND THE DEFINITION
OF VIRTUAL CURRENCY- IN THE BILL
PRESENTLY IS ONE THAT THE IRS
PRESENTLY USES SO THAT THERE'S
CONFORMITY WITH FEDERAL LAW IN
THAT RESPECT. A VIRTUAL
CURRENCIES HAVE SEEN A MASSIVE
UPTICK IN ADOPTION OVER THE LAST
FIVE YEARS CCORDING TO A RECENT
REPORT AN ESTIMATED ONE FIFTH OF
LARGE ORGANIZATIONS IN AMERICA
WE USED DIGITAL CURRENCIES BY
TWENTY TWENTY FOUR. MICROSOFT
STARBUCKS VISA MASTERCARD AND
COCA COLA ARE AMONG SOME OF THE
LARGE BUSINESSES ALREADY THAT
HAVE ADOPTED CRYPTOCURRENCY USE
FOR PAYMENT FOR GOODS AND
SERVICES- MANY DECENTRALIZED
VIRTUAL CURRENCIES ARE BASED ON
THE BLOCKCHAIN NETWORK. A
BLOCKCHAIN NETWORK SIMPLY PUT
AND I'M NOT A COMPUTER ENGINEER.
BUT THE BASIC IDEA IS IT IS A
LIST OF DECENTRALIZED RECORDS.
ARE KNOWN AS BLOCKS BETTER- YOU
YOU USE CRYPTOGRAPHY TO ACCESS
THEM AND THEN WHEN YOU ADD
SOMETHING TO. THE LEDGER IT
BECOMES THE NEXT PART OF THE
CHAIN HENCE THE NAME. BLOCKCHAIN
WHEN TRANSACTIONS REQUESTED HE
REQUEST IS BROADCASTED THE
ENTIRE DECENTRALIZED NETWORK FOR
VERIFICATION. HENCE THE ENHANCED
SECURITY- AFTER THE TRANSACTION
IS VERIFIED BY THE NETWORK A
PERMANENT UNCHANGEABLE BLOCK.
CONTAINING THAT TRANSACTION IS
ADDED TO THE EXISTING.
BLOCKCHAIN A VIRTUAL CURRENCIES
OFFER INCREASED CONVENIENCE
POTENTIALLY PAYMENTS ARE FAST
AND EASY BECAUSE THEY ARE BASED
ON A NETWORK SYSTEM- THE
TRANSACTIONS ARE ALSO
DECENTRALIZED THAT MEANS THERE'S
NO TRANSACTION COSTS THERE IS A
RISK OF SECURITY FAILURE. OR
DATA BREACH BY THE MINISTRY. OF
BECAUSE THEY'RE SPREAD OVER A
COMPUTER NETWORK THAT IS IN MANY
CASES ALL OVER. THE WORLD.
CALIFORNIA CONSISTENTLY HAS LED
THE WAY IN FOSTERING NEW
INNOVATION NEW TECHNOLOGY. BY
EXPLORING THE POTENTIAL ADOPTION
OF VIRTUAL CURRENCY AND ALLOWING
THE PERMISSION FOR COOPER
COMPANIES OR GOVERNMENT ENTITIES
TO DO THAT. CALIFORNIA CAN
REMAIN ON THE CUTTING EDGE WE DO
NEED APPROPRIATE GUARDRAILS
THAT'S WHY I'M- VERY GRATEFUL TO
THE CHAIR INTO THE COMMITTEE
CONSULTANTS IN THIS COMMITTEE
FOR BEING WILLING TO LOOK AT
THIS. AND START THE CONVERSATION
ABOUT HOW WE CAN PROTECT PEOPLE
AND USE OUR STRENGTH AS
CALIFORNIANS IN TERMS OF OUR
HISTORY OF CONSUMER PROTECTIONS
IN THE STRONGEST CONSUMER
PROTECTION LAWS. ANYWHERE IN THE
COUNTRY- I WOULD SUBMIT TO YOU
BASED ON A TECHNOLOGICAL. OF
LEADERSHIP THAT OUR STATE ENJOYS
AND BASED ON OUR STRONG HISTORY
CONSUMER PROTECTION CALIFORNIA
FOR THE BEST PLACE TO START-
BEING ON THE CUTTING EDGE. OF
WHAT WE CAN UTILIZE
CRYPTOCURRENCY FOR AND ALLOW OUR
CITIZENS AND BUSINESSES TO USE.
ARE CALLING IN AND SUPPORT TO
SPEAK ON THE BILL IS OUR FORMER
MAJORITY LEADER IAN CALDERON.
AND ALSO ON THE LINE I BELIEVE
IT'S MICHAEL MAGIC SORRY I
MESSED UP YOUR NAME MICHAEL OF
MAJORITY ADVISORS TO PROVIDE ANY
TECHNICAL SUPPORT ANSWER ANY
QUESTIONS THE COMMITTEE MAY
HAVE. THANK YOU. THANK YOU
MISTER CALDERON. THANK YOU
MISTER CHAIR AND MEMBER IT'S
BEEN SO NICE LISTENING TO YOUR
VOICE IS BEEN VERY NOSTALGIC FOR
ME AND I CAN'T I GOT THAT MISSED
EVERYBODY AND I MISS BEING UP
THERE WITH YOU BUT I REALLY WANT
TO THANK YOU ALL FOR YOUR TIME
AND ATTENTION. TO THIS ISSUE-
THIS IS- AN EXTENSION OF WORK
THAT I HAD BEEN WORKING ON WHEN
I WAS THERE WITH YOU IN THE
LEGISLATURE I REALLY APPRECIATE-
COMING OVER CUNNINGHAM TAKING
THIS ON AND- YOU KNOW TRYING TO
BE A LEADER IN THE SPACE FOR ALL
OF US FOR THE STATE OF
CALIFORNIA- OBVIOUSLY THIS BILL
IS IMPORTANT FOR A LOT OF
DIFFERENT REASONS BUT- YOU KNOW
THERE'S NOTHING A GOOD IN
EXISTING LAW THAT SAYS WE CAN'T
DO. THAT THAT SAYS THAT YOU KNOW
ABOUT BUSINESS OR A GOVERNMENT
CAN'T TRANSACT USING VIRTUAL
CURRENCIES BUT THERE'S ALSO
NOTHING IN LAW THAT SAYS THAT
YOU CAN AND THAT LACK OF.
REGULATORY CLARITY BECAUSE OF A
LOT OF CONFUSION AND MY
INTERESTS MY WORK ON THESE
ISSUES IN THE LEGISLATURE WAS
ALWAYS FOCUSED ON HOW DO WE MAKE
CALIFORNIA YEAH CONTINUE TO BE
RELEVANT AND TECHNOLOGY AND
HAVE- THAT THE NEXT GENERATION.
SB ANYWHERE IT DOESN'T HAVE TO
BE IN ONE PLACE WE'VE BEEN A
LEADER IN TACT BUT THAT DOESN'T
MEAN IF WE DON'T PAY ATTENTION
TO CREATE CLEAR CLARITY AND
CLEAR REGULATION IN THIS SPACE
AND WE'RE GOING TO CONTINUE TO
BE LATER LATER THEIR ALREADY
FOUR HUNDRED BUSINESSES ABOUT
ABOUT FOR THE BUSINESSES IN
CALIFORNIA ARE ALREADY
TRANSACTING IN VIRTUAL
CURRENCIES BUT THIS CONTINUES TO
BE A ROADBLOCK TO THE INDUSTRY
AND BUSINESSES CONSIDERING
STARTING HERE- AND MOVING
OPERATIONS HERE AND CONTINUING.
TO INVEST YOUR- ON THE OTHER AND
WE ALSO HAVE THE- THE ISSUE OF
CONSUMER PROTECTION I AGREE- AND
SHARE THE CHAIR SENTIMENTS WHEN
HE STARTED THIS- TESTIMONY ON
THIS BILL THAT WE WANT TO HAVE
GOOD CONSUMER PROTECTIONS TO
PROTECT THOSE ARE TRANSACTING IN
AN OPERATING SPACE BUT THE
REALITY IS THAT THAT THEY
ALREADY ARE- AND THIS ISN'T
SOMETHING COLLECTED THIS SINCE
I'VE BEEN WORKING AT THIS YEAR'S
IT CONTINUE TO GROW. BECOME MORE
PREVALENT AND IT'S ONLY GOING TO
CONTINUE TO DO THAT- AND THE
ONLY WAY THAT WE CAN MOVE IN A
DIRECTION WHERE WE CAN HAVE A
BETTER CONSUMER PROTECTION IS TO
CONSIDER POLICIES. THAT PROVIDE
DIRECTION FROM A STATE POLICY
LEVEL THROUGH THE LEGISLATURE
AND GIVE DIRECTION TO REGULATORY
AGENCIES UNDERTOOK THAT THEY
WANT TO GET IN MY CONVERSATIONS
WITH THEM THEY'RE INTERESTED-
BUT THERE'S NOT ENOUGH OF AN
UNDERSTANDING OR DOES NOT A LOT
OF CONFIDENCE DISCONTENT TO
START REGULATING THEN THE SPACE
JUST YET. SO STOP THERE'S A LOT
OF WORK THAT NEEDS TO BE DONE I
DON'T WANT TO BE TO PUT IT EVAN
SAY TOO MANY THE SAME THINGS
THAT I THINK THE ASSEMBLY MEMBER
AND IT'S OPENING UP REMARKS MADE
A LOT OF THE GREAT POINTS BUT
YOU KNOW IF YOU'RE A LOCAL
GOVERNMENT AND YOU WANT TO
TRANSACT AND OR ACCEPT VIRTUAL
CURRENCIES RIGHT NOW THERE'S A
CONCERN. THAT THE STATE ONCE
YOU'RE SIX MONTHS DOWN THE LINE
A YEAR DEL YEAR DOWN THE LINE IN
A PILOT PROGRAM COMMENTED AND
TAKE THAT AWAY FROM YOU SAYING
I'M SORRY YOU CANNOT DO THAT
UNTIL THERE ARE GOVERNMENT.
THERE ARE BUSINESSES THAT YOU
DON'T WANT MORE CLARITY THEY
NEED MORE- I THINK THAT. YEAH
CALIFORNIA WE WANT TO BE LEADER
IT COMES TO DEVELOPING POLICY
REGULATE AND THAT'S- BECAUSE
WE'RE ABOUT WHETHER STAY. WHAT
WE DO. IS PICKED UP AND GREAT
PEOPLE CATERED IN OTHER STATES.
TEXAS WYOMING THEIR LEADING
RIGHT NOW AND I WOULD I WOULD
SAY THAT I WOULD TRUST.
CALIFORNIA'S APPROACH ON
CONSUMER PROTECTION OVER THOSE
OTHER STATES THAT RESPECT THE
WORK THAT THEY'VE DONE. BUT WE
WANT TO BE A LEADER IN THAT
SPACE AND WE NEED TO BE A LEADER
IN THIS SPACE. BUT THAT ISN'T
GOING TO HAPPEN IF WE DON'T.
SPEND THE RIGHT AMOUNT OF TIME
AND ENERGY- SHOWING THE INDUSTRY
THAT THIS IS THE PLACE. WHERE
WE'RE GOING TO CREATE THOUGHTFUL
POLICY THOUGHTFUL REGULATION AND
CREATE SOME STANDARDS AROUND
CONSUMER PROTECTION TO MAKE
PEOPLE FEEL SAFE. WHEN
TRANSACTING AND INTERACTING WITH
THESE VIRTUAL. CURRENCIES THANK
YOU SO MUCH FOR YOUR TIME. THANK
YOU AND NEXT WITNESS. WE'RE
SEPARATED OUT IN THE MEDICAL
CENTER OKAY GO AHEAD. THANK YOU
MR CHAIRMAN MEMBERS OF THE
COMMITTEE I APPRECIATE THE
OPPORTUNITY TO BECOME PART OF AB
TWENTY PICKED A NINETY DAY AND
ALSO WANTED TO SAY THANK YOU TO
MISTER CUNNINGHAM AND HIS STAFF
FOR THEIR EFFORTS IN THE STATE.
MY NAME'S MIKE MCGEE I'M
CURRENTLY A CONSULTANT BEEN
WORKING ON CRYPTO RELATED
LEGISLATION FOR THE LAST COUPLE
OF YEARS AT INCLUDING AS A
LEGISLATIVE AIDE MISTER
CALDERON. AB AS WELL AUTHOR ON
THE CALIFORNIA BLOCKCHAIN
WORKING GROUP'S REPORT WHICH WAS. DELIVERED TO THE LEGISLATURE
BACK IN TWENTY TWENTY- ALL THE
PRE BUT I WANT TO JUST PROVIDE
THAT THE- CON. WITH THE CALDERON
DATE. M. TRAILER WHY THIS WOMAN
. ISSUE FOR CAL. AND WHY THIS IS
THE AND- KIND OF PERSONAL- BURKE
FOR POLICY. AT THIRTY IN TWENTY
TWENTY ONE FROM POPULAR CRYPTO
RESEARCH WEBSITE RANKS
CALIFORNIA AS THE NUMBER ONE
CRYPTO READY STATE. THE RANKING
IS BASED ON A BRIEF. NUMBER ONE
CRYPTO. INTERNET SEARCHES BY
CALIFORNIANS. NUMBER TWO THE
NUMBER OF CRYPTO ATMS IN OUR
STATE. NUMBER THREE THE NUMBER
OF CRYPTOCURRENCY BUILT THAT
WOULDN'T HAPPEN STATE
LEGISLATURE. AT THE IN THE
NATION CALIFORNIA STILL RANKS
FIRST IN BOTH THE NUMBER OF
CRYPTO RELATED INTERNET SEARCHES
AND THE NUMBER OF CRYPTO ATM.
AND BUT WE HAVE NOT HAD ANY
BILLS RELATING TO
CRYPTOCURRENCY. AND DESPITE
THAT. THE INTEREST SHOWN IN THE
INTERNET SEARCHES NUMBER EIGHT
YEAH NUMBER OF STARTED BUT THE
HAS INDICATED THE CALIFORIA BY
THE STUDY'S RANKING IN BOTH THE
NUMBER ONE CRYPTO READY STATE.
AB AND CONVERSELY ON THE
LEGISLATION BY. THE OF THE
NATIONAL CONFERENCE OF STATE
LEGISLATURES REPORT THAT
SEVENTEEN STATES HAVE ENACTED
LEGISLATION OR RESOLUTIONS
RELATING TO CRYPTOCURRENCY. AB
EARLIER THIS YEAR IN FEBRUARY
COLORADO GOVERNOR ANNOUNCED THEY
WILL ALLOW RESIDENTS BEGIN
PAYING THEIR STATE TAXES WITH
CRYPTO BUYERS AT THE SUMMER AT
THE LATEST- WHICH IS THE PART IN
PART WHAT AB TWENTY SIX EIGHTY
NINE BECAUSE THEY DO- AND THEN
FINALLY AND- WITH YOUR- MADE. AT
HELP. WILL FOUR HUNDRED BELIEVE
THAT THE NUMBER FOUR HUNDRED
FORTY BUSINESS. THAT CURRENTLY
YOU. PUBLICLY STATE THEY ACCEPT
CRYPTO. AT THE NECK HI IF ON
THAT WITH PERSPECTIVE WITH NEW
YORK WHAT A HUNDRED AND FIFTY
EIGHT. AB AT THAT IS THAT A LOT
OF DIFFERENT REPORTS WITH THAT
THE CLINTON ADMINISTRATION BUT
THE TREND THAT WE'RE SEEING IS
THAT THE MORE MUCK ALL THEM.
WITCHES CALIFORNIA HAS A REALLY
OUTSIDE HERE INDUSTRY AND
OUTSIDE SHARE OF CONSUMERS-
FOLKS THAT ARE INTERESTED IN
ENGAGING WITH CRYPTO ARE ALREADY
TRADING ON CRYPTO AT BUT WE ALSO
HAVE THE A- GLARING LACK OF
REGULATORY CLARITY TO MATCH
THAT. AT NINE. TWENTY SIX EIGHTY
NINE WOULD BE A STRONG STEP IN
THAT DIRECTION WE BELIEVE
WARRANT TO CONTINUE CONVERSATION
ON THE ISSUE THANK YOU AGAIN FOR
THE TIME TODAY AND HAPPY TO
ANSWER ANY QUESTIONS ON THIS
TOPIC. THANK YOU VERY MUCH FOR
YOUR TESTIMONY AND ARE THERE ANY
OTHER WITNESSES IN SUPPORT IN
THE ROOM. SINGING SKATE YES
HEARING- ARE THERE ANY OTHER
WITNESSES ON THE PHONE MODERATOR
ON THE PHONE. THANK YOU IF YOU
WISH TO SPEAK IN SUPPORT PLEASE
PRESS ONE THEN ZERO AT THIS TIME. I DO HAVE ONE IN Q. IT'LL JUST
BE ONE MOMENT THANK YOU.
ONE TWENTY THREE PLEASE GO AHEAD
. GOOD AFTERNOON CHAIR MEMBERS
AND HAPPY MONDAY MY NAME IS
KEVIN CHARMER IN THE DEPUTY
DIRECTOR OF THE DIGITAL CURRENCY
TRADERS APPLYING FOR A PRO
CRYPTO CONSUMER PROTECTION GROUP
WE STRONGLY SUPPORT THE GOAL IN
CONCERT THAT THE BILL AND HOPE
TO CONTINUE WORKING WITH THE
DOCTOR'S OFFICE THE COMMITTEE
AND THE LEGISLATURE TO CHECK
CONSTRUCTING PROTECTIONS THAT
SAFEGUARD CALIFORNIA CONSUMERS
FUND RAISING. ECONOMIC AND.
TECHNOLOGICAL INNOVATION THANKS
SO MUCH. THANK YOU FOR THAT
TESTIMONY ANY OTHER. WITNESSES
IN SUPPORT. YOU HAVE NO FURTHER
LINE THANK YOU THANK YOU AND WE
- I HAVE NO IDENTIFIED PRIMARY
WITNESSES IN OPPOSITION ARE
THERE ANY OPPOSITION- FOLKS IN
OPPOSITION IN THE ROOM WE HAVE.
ONE GOOD AFTERNOON MR CHAIRMAN
MEMBERS KAREN LAYING ON THERE
FOR THE COUNTY ASSOCIATION OF
TREASURERS AND TAX COLLECTORS I
KNOW YOU'RE ON THE EDGE OF YOUR
SEATS THIS AFTERNOON FOR THIS IS
THE VISION STILL FEELS AS THOUGH
THIS AREA IS NOT- DOESN'T
CONTAIN ENOUGH PROTECTIONS FOR
COUNTY TREASURER'S TO ACCEPT.
CRYPTOCURRENCY IT THIS TIME WE
CAN FLUCTUATE SO WILDLY IN IN
JUST A SHORT PERIOD OF TIME THAT
IT ON APRIL TENTH AND DECEMBER
TENTH WHEN WE COLLECT PROPERTY
TAXES FOR EXAMPLE TWO HUNDRED
AND SEVENTY BILLION DOLLARS
BETWEEN THOSE TWO DEADLINES THAT
HAVE A FLUCTUATES ON THE OUT
WILDLY. IT COULD AFFECT THE
ABILITY TO PAY IT REAL A REAL
NEAR TERM APPLICATIONS AT THE
LOCAL LEVEL AND WERE OBLIGATED
TO FOLLOW VERY STRICT INVESTMENT
CRITERIA AS SPECIFICALLY AS A
RESULT OF THE ORANGE COUNTY
BANKRUPTCY AND SECURITY IS THE
NUMBER ONE PRIORITY OF THE
TREASURES AND DOESN'T POLICY IN
ANY COUNTY FOR THOSE REASONS
WERE STILL OPPOSED AND THANK YOU
FOR YOUR- CONSIDERATION OF OUR
POSITION THANK YOU. THANK YOU
FOR THAT MODERATOR ARE THERE ANY. WITNESSES IN OPPOSITION ON THE
PHONE. THANK YOU IF YOU WISH TO
SPEAK IN OPPOSITION PLEASE PRESS
ONE THEN ZERO AT THIS TIME. I
HAVE NO COMMENT THANK OU. THANK
YOU AND WITH THAT I WILL BRING
IT BACK TO THE COMMITTEE. WE DO
HAVE A COMMITTEE MEMBER MR STONE
ASSEMBLY MEMBER STONE. THANK YOU
I THINK IT'S VERY GOOD FOR THIS
COMMITTEE TO BE HAVING THIS
CONVERSATION TO BE TALKING
ABOUT. CRYPTO CURRENCY IN AND
REALLY HOW. WE START TO LOOK AT.
OPPORTUNITIES TO CHANGE THE
FINANCING SYSTEM I DO BELIEVE
THAT CRYPTOCURRENCY HAS THE
ABILITY. TO BE BENEFICIAL LONG
TERM IN THAT IT CAN REALLY
CHANGE THE WAY THAT THE- PAYMENT
SYSTEM HAS BEEN DEVELOPED OVER
THE YEARS WHICH IS ONE OF THE
REASONS BUT A LOT OF PUSHBACK. A
CRYPTOCURRENCY BECAUSE IT IT
WILL HAVE THE ABILITY TO TAKE
OUT THAT LITTLE 3% THAT'S THERE
THAT WE THAT. MERCHANTS ACTUALLY
END UP PAYING FOR ALL ALONG THE
WAY. HOWEVER I'D I CAN'T SUPPORT
THIS BILL AND I'M HOPING THAT IT
DOESN'T COME UP PREMATURELY AND
DAMAGE THE ABILITY TO HAVE A
LONGER TERM CONVERSATION ABOUT
CRYPTOCURRENCY AND THE REASON
REALLY IS THAT CRYPTOCURRENCY
RIGHT NOW IS LOOKING FOR
LEGITIMACY. AS THEY SHOULD BE
AND THIS IS JUST AN ATTEMPT TO
CREATE SOME SEMBLANCE OF
LEGITIMACY AS THEY TRY AND WRK
OUT. WHAT THE- HOW
CRYPTOCURRENCY ULTIMATELY CAN
FUNCTION IN OVERALL IN IN A
PAYMENT SYSTEM. AND IF PRIVATE
COMPANIES WANT TO TAKE THE RISK
OF THE VOLATILITY AND WHAT
CRYPTOCURRENCY DOES OUR MEANS
THAT THEY CAN DO THAT THE
PROBLEM I HAVE WITH THIS BILL IS
AS REGULATORY REGULATORS BOTH
THE STATE AND THE FEDERAL LEVEL
REALLY DON'T EVEN KNOW WHETHER
REGULATORS A CURRENCY OR REGULAR
HIS SECURITY OR WHAT TO DO
AROUND. AND UNTIL SOME OF THOSE
DECISIONS ARE MADE THERE IS NOT
APPROPRIATE CONSUMER PART A
COULD PROPER CONSUMER PROTECTION
FRAMEWORK WITHIN WHICH TO
PROTECT THE CONSUMERS NOW LET'S
TALK ABOUT WITH THIS BILL DOES
WITH RESPECT TO CITIES AND
COUNTIES WHO ARE AND HAVE BEEN
FOR A LONG TIME REALLY CASH
STRAPPED. AND IF WE OPEN UP THIS
IN IN PROVIDE SOME LEGITIMACY MY
WORRY IS THAT SOME OF THESE
ENTITIES WOULD GO AND DO JUST
THAT AND NOW START TAKING CRYPTO
CURRENCIES IN TAKING ON THE RISK
OF THE VOLATILITY OF THOSE
CURRENCIES REPRESENTS. THEY
THEIR THIS IS PUBLIC MONEY THAT
THEY'RE MANAGING. AND IF ALL OF
A SUDDEN GIVEN THE FLUCTUATIONS
IN THE CURRENCY. A LOCAL
JURISDICTIONS COFFERS OF THE
WEEK COUNTIES COLLECT MONEY
COUNTIES COLLECT MONEY. NOT ONLY
FOR THE COUNTY BUT FOR A LOT OF
THE- AGENCIES IN THAT COUNTIES
CITIES AND SPECIAL DISTRICTS AT
ALL. AND IF THAT FUN NOW IS
BASED TO SOME EXTENT OF CRYPTO
CURRENCY IN THE WRIST THAT THAT
REPRESENTS. AND THERE THAT
VOLATILITY GOES NEGATIVE. THOSE
ORGANIZATIONS ARE GOING TO BE IN
A WORLD OF HURT. AND THEY'RE
GONNA BE LOOKING THEN TO US THE
STATE TO TRY AND HELP SOLVE THIS
AND BEAR THIS OUT. I JUST DON'T
SEE HOW ULTIMATELY HOW THIS IS
WORKABLE RIGHT NOW. THAT I THINK
THIS INDUSTRY NEEDS TO FROM A
GOVERNMENT STANDPOINT INSTEAD OF
GETTING GOVERNMENTS TO TAKE THE
- BEING. WILLING TO TAKE THE
VOLATILITY RISK THAT CRYPTO
CURRENCIES MEAN. IF WE CAN GET
TO A FRAMEWORK THAT ESTABLISHES
WHETHER IT'S A CURRENCY WHETHER
IT'S A SECURITY HOWEVER THAT
DECISIONS GOING TO COME DOWN.
MANAGE THAT AND THEN WE CAN GO
THROUGH THAT PROVIDE ULTIMATELY
SOME STABILITY. IN THESE MARKETS
WE'D BE ON A MUCH BETTER TRACK
TO DO THAT SO I DO NOT WANT TO
DO ANYTHING TO QUASH THE
DISCUSSION HERE. BUT I'M VERY
LEERY OF. SENDING WRONG SIGNALS
OUT TO LOCAL GOVERNMENT AGENCIES
BE THEY SPECIAL DISTRICTS CITIES
OR COUNTIES. THAT MAY WANT TO
START TO ADOPT THIS. IF THEY DO
AND TAKE THE RISK THAT'S BETWEEN
THEM AND THEIR TAXPAYERS
ALTHOUGH I SAY THAT WITH A
LITTLE BIT OF CAUTION. BECAUSE
ULTIMATELY THEY'RE GONNA COME TO
US COUNTIES ARE ARM OF THE
STATE. AND WHEN THEY FAIL. STATE
NEEDS TO STEP IN. USUALLY TO
BAIL THEM OUT WHY WOULD WE BE
TAKING THIS RISK. IN A WHOLE
AREA THAT IS. HAS DEMONSTRATED
SUCH SIGNIFICANT VOLATILITY OVER
THE YEARS THERE ARE THE PEOPLE
WHO'VE HAD SOME INVESTMENTS IN
IN CRYPTO MYSELF INCLUDED. AND
WATCHED IT AND I MADE THOSE
INVESTMENTS TO JUST TO SORT OF
SEE WHAT WOULD HAPPEN AS IT WENT
UP AND DOWN. I'M TALKING LESS
THAN A HUNDRED. THOUGH ALTAMENTE
BECAUSE IT WAS. TO SORT OF
BETTER UNDERSTAND. WHAT WAS
HAPPENING IN THE MARKETS AND ALL
SO. WE SHOULD NOT BE IN A
POSITION AS A LEGISLATURE OF
PREMATURELY CREATING. THIS
VENEER OF LEGITIMACY UNLESS AND
UNTIL WE REALLY HAVE THE RIGHT
FRAMEWORKS IN PLACE THAT'S WHAT
I'M HOPING WE'RE GOING TO BE
WORKING ON AND GET. THEY THE
APPROPRIATE DEPARTMENTS TO PUT
TOGETHER THE RIGHT KIND OF
FRAMEWORK AND EVEN DECIDE HE
GAVE ITS CURRENCY REGULATE AYE
CURRENCY IF IT'S A IF IT'S
INVESTMENT OR SECURITY
REGULATORS A SECURITY. BUT
NOBODY'S REALLY WILLING TO DO
THAT WITH THAT'S THE FRAMEWORK
WE SHOULD BE LOOKING TO DO
RATHER THAN JUST OPENING UP THE
DOORS AND SAYING SURE YOU CAN
TRADE IN THE US. WHEN YEP THEY
PROBABLY COULD. I'MNOT SURE I
WOULD ENCOURAGE COUNTIES OR
CITIES OR SPECIAL THIS WEEK TO
DO THAT PRIVATE BUSINESSES
THAT'S THEY'RE MAKING THEIR OWN
RISK ASSESSMENT BUT THERE'S LESS
AT STAKE BECAUSE IT'S NOT PUBLIC
MONEY. NOW WE'RE TALKING ABOUT
PUBLIC MONEY I GET A LITTLE BIT
MORE CONCERNED WITHOUT THE
REGULATORY BACKSTOP. THANK YOU
OF. MEMBER STONE DR CHOI WITH
YEAH- NOT OR SO- ECHO SOME OF
THE QUESTIONS- THE ASSEMBLYMAN
STONE S. RAISED UP IN THE FIRST
OF ALL I THINK THAT THIS IS A
GOOD FORUM THANK TO SMM A
CUNNINGHAM TO- BRING IT UP BUT-
AS A LACK OF PUBLIC HEARING
FORMAT. RATHER THAN ASKING US TO
VOTE ON IT THAT BECAUSE OF THIS
IS A VERY HUGE. ISSUE I KNOW-
WAS- DEVELOPING AND OF WHAT'S
HAPPENING OUT THERE
CRYPTOCURRENCY IS HERE TO STAY I
BELIEVE- HOWEVER. BY RECOGNIZING
BY THE CALIFORNIA S- LEADER OF
THIS- MOVEMENT TO AMEND THAT
DESIRE IS GOOD BUT I THINK WE
NEED TO- TAKE A PRECAUTION
BECAUSE THIS OF RECOGNIZING
CRYPTOCURRENCY S. ON MACOS- A
SECONDARY- US DOLLARS. BECAUSE A
WE ARE AT THE GYM I SEE THAT THE
PAYMENT SYSTEM AND THAT SOME
COMPANIES- SUCH AS- TESTS A LOT
I KNOWN THAT THE ONE TIME-
ELEVEN MUSCAT DECLARED THAT THEY
WOULD TAKE CRYPTO CURRENCY TO
PURCHASE FOR THE- CONSUMERS TO
PURCHASE- THEY A TESLA VEHICLE
AND THEN HE- STOPPED IT. AND THE
SO I THINK IT MIGHT BE A GOOD
IDEA. NEXT FORM I DON'T KNOW
THAT WOULD BE IS A SECOND
HEARING TIME. TO HAVE- COMPANIES
LARGE COMPANIES SO WE HAVE DONE
A LOT OF RESEARCH ARE SUPPORTING
THAT IDEA. THAT THAT YOU ARE
SUGGESTING AND HERE AND- SOME OF
THE OPPOSITION. GROUPS OR
EXPERIENCE- OR EVEN ELEVEN MUSKA
SAY WHY DID YOU STOP WE CAN ASK
WHAT WAS THE PROBLEM. I THINK I
THOUGHT THOUGH CREDIBLE FORM
MORE OPPORTUNITY BEFORE- OUR
MEMBERS ARE ASKED TO VOTE
BECAUSE I ASSUME MOST OF US ARE
NOT EXPORTS. THE FUTURE. THE
IMPACT OF THIS A POLICY ONCE WE
MORANI IS SOUNDS GOOD AND- WE
BORDER ON IT UP BUT THERE MAY BE
A VERY DEEP THE FINANCIAL
IMPLICATIONS SUCH AS SOME POINTS
WERE RAISED TO BUY AS THE
MINIMUM WAS A STORM SO I THINK
THAT THAT- IS OF SAMARIA- TO
SUGGEST THE FORTY FORTY TO
PROVIDE ANOTHER FORM SO HEARING
FORMAT TO EDUCATE US. THANK YOU
DR CHOI AND- MR GABRIEL ASSEMBLY
MEMBER YET THANK YOU MISTER
CHAIR- AND- YOU WANT TO THANK
THE AUTHOR FOR STARTING THIS
CONVERSATION IT'S SUCH AN
IMPORTANT ONE- AND I WOULD JUST
ECHO THE RESPECT FOR YOU AND FOR
OUR- FROM A MAJORITY LEADER THAT
YOU'VE HEARD FROM THE KAREN FROM
OTHERS HERE- AND I KNOW THAT
THIS IS SUCH AN AFFRONT
CONVERSATION AND I THINK THERE'S
THE CRYPTO PIECE OF THIS THERE'S
ALSO JUST THE LARGER
CONVERSATION ABOUT BLOCKCHAIN
TECHNOLOGY WHICH I THINK IS A
REALLY IMPORTANT ONE AND I KNOW
WE'RE GONNA HAVE. PART OF THAT
CONVERSATION TOMORROW THE
PRIVACY COMMITTEE- TO START TO
THINK ABOUT SOME OF THE
POTENTIAL USES OF THAT
INNOVATIVE TECHNOLOGY- AND I'LL
JUST REFLECT ON THE FACT THAT I
THINK IN SOME WAYS THAT ASSEMBLY
MEMBER STONE AND IS A MEMBER
CHOI ARE SAYING THE SAME THING
WHICH WHICH WE DON'T OFTEN MAYBE
ARE ALWAYS HERE AROUND HERE- AND
I SHARE. I THINK SOME OF THEIR
PERSPECTIVE HERE WHICH IS THAT
THERE'S TREMENDOUS OPPORTUNITIES
HERE BUT I THINK WE NEED TO LOOK
AT AS A LEGISLATURE WITH
BLOCKCHAIN TECHNOLOGY- YOU KNOW
THIS IS CERTAINLY THE TECHNOLOGY
OF THE FUTURE AND I DON'T THINK
THAT THERE'S MUCH DOUBT ABOUT
THAT- WITH A LOT OF- REALLY
POTENTIALLY EXCITING AND
INTERESTING USES AND I KNOW THAT
YOU HAVE BEEN A LEADER ON THAT-
AND I THINK YOU'RE RIGHT TO
START THIS CONVERSATION WHAT I
WOULD SAY IS THAT I THINK WE
NEED TO HAVE A CONVERSATION IN
THE RIGHT WAY- THERE'S A-
SIMULTANEOUS CONVERSATION GOING
ON AT THE FEDERAL LEVEL THAT.
OUR COLLEAGUE MENTIONED- THAT I
THINK IS GOING TO HAVE SOME
REALLY POWERFUL IMPLICATIONS FOR
CRYPTOCURRENCY FOR THE WAY THAT
WE- YOU KNOW REALLY START TO
THINK WHAT IS THE REGULATORY
ARCHITECTURE SO I JUST WANT TO
ECHO YOU KNOW SUPPORT FOR THE
FOR THE IDEA OF HAVING THESE
CONVERSATIONS- BUT ALSO DOING IT
IN THE RIGHT DELIBERATE THOROUGH
THOUGHTFUL WAY I THINK WE CAN
THREAD THE NEEDLE HERE WORK
CALIFORNIA CAN BE. ON THE
CUTTING EDGE THAT WE CAN SUPPORT
INNOVATIVE TECHNOLOGIES BUT ALSO
REALLY YOU KNOW THINK VERY VERY
CAREFULLY ABOUT HOW WE'RE GONNA
DO THIS SO THAT WE'RE DOING ITS
OWN A WAY THAT PROTECTS PUBLIC
FUNDS YOU KNOW PROTECT CONSUMER
CONSUMER INTERESTS- ANNA AND I
AM JUST GLAD THAT YOU'RE
STARTING US ON THE CONVERSATION
SO APPRECIATE YOU. THANK YOU
CINEMA GABRIEL ANY OTHER
COMMENTS QUESTIONS FROM. MEMBERS
CNN. CINNAMON WHAT YOU LIKE TO
OFFER SOME CLOSING COMMENTS.
SURE I RESPECTFULLY REQUEST YOU
KEEP AN OPEN MIND WITH RESPECT
TO CRYPTO I'M HEARING THAT FROM
EVERYBODY I APPRECIATE IT THANK
YOU THE CHAIR AGAIN FOR- YOU'RE
PUMPING THE BRAKES A LITTLE BIT
MAKE SURE WE'RE DOING THIS AND
THOUGHTFUL WAY I GET THE NOTE OF
CAUTION AND I. TO ASSEMBLY
MEMBER STONES POINT I GET THE
DIFFERENCE BETWEEN PUBLIC MONEY
AND PRIVATE MONEY AND THERE'S A
DISTRICT DIFFERENT RISK FACTOR
THERE AND THAT NEEDS TO BE TAKEN
INTO ACCOUNT- THERE'S ALSO
REGULATORY RISK RIGHT SO THAT'S
THE QUESTION I THINK THIS
COMMITTEE. OVERTIMES GOING TO
HAVE TO. COME TO TERMS WITH
BECAUSE RIGHT NOW WE'VE GOT
NOTHING SAYING YOU CAN OR CANNOT
DO THIS. EXCEPT SAY. BIG POINTY
IS ONE EXAMPLE FOR. LARGE
AMOUNTS OF COCA COLA OR WHATEVER
IT IS- AND SO BUSINESSES THAT
ARE CHOOSING TO DO THAT ARE.
PLACED IN A POSITION OF
UNCERTAINTY OR THEY DON'T KNOW
IF SOMETHING'S GONNA COME ALONG
LATER AND- PULL THE RUG OUT FROM
UNDER THEM. SO TO SPEAK- I DON'T
I DON'T HEAR THAT. FROM THIS
COMMITTEE IT DOESN'T SOUND SUPER
LIKELY BUT- CERTAINLY THAT SORT
OF AMBIGUOUS SITUATION THOSE
BUSINESSES ARE AND ARE SOMETHING
THAT SHOULD BE EXPLORED. ON THE
FEDERAL PIECE- YEAH THIS. THE I
DID DO SOME LEGAL RESEARCH THE
PREVAILING LEGAL OPINION IS
THAT. CRYPTO CURRENCIES ARE NOT
A SECURITY UNDER THE US
SECURITIES EXCHANGE ACT- THEY'RE
ALSO NOT A FIAT CURRENCY ISSUED
BY A GOVERNMENT OR CENTRAL BANK
SO. THERE THIS NEW DIFFERENT
THINGS. AND THEY HAVE AS
ASSEMBLY MEMBER STONE ALLUDED
TO. A DOCTOR CHOI- POTENTIAL TO
CUT OUT A LOT OF MIDDLE MEN AND
DO IT IN A WAY THAT'S VERY
DISRUPTIVE VERY PRO CONSUMER
POTENTIALLY AND- YEAH THERE'S SO
MANY LATENT BENEFITS TO. THE
SECURITY THE DECENTRALIZATION
THE FACT THAT IT CAN BE
EXCHANGED PEER TO PEER I MEAN
THESE ARE ALL THINGS THAT ARE
ARE TREMENDOUSLY POTENTIALLY
BENEFICIAL SO I'M I'M GLAD THAT
YOU AFFORD ME THE TIME TO HAVE
THIS DISCUSSION. AND OBVIOUSLY
WON'T BE ASKING FOR VOTE AS WE
DISCUSSED EARLIER AND I THINK
MAYBE ON THE PUBLIC IECE THE
LAST THING I'LL SAY IS FOR
PUBLIC ENTITIES. IT MIGHT BE
SOMETHING WHERE IT MAKES SENSE
TO DO SOME SORT OF PILOT
PROGRAM. AT SOME CANNOT SENATORS
. I MEAN. YOU KNOW SOMEONE
SOMEWHERE. WHERE THERE'S
APPROPRIATE SAFEGUARDS IN A PLAN
IN PLACE IN CASE- THE VOLATILITY
GOES THE WRONG DIRECTION AND YOU
ARE OR MAYBE WITH A SMALL
SPECIAL SERVICES DISTRICT I'D I
DON'T KNOW WHAT THE ANSWER IS
THERE- BUT I THINK- BLOCKCHAIN
WRIT LARGE AND CRYPTO AS PART OF
THE BLOCKCHAIN. IS IT IS GOING
TO BE INEVITABLE I THINK IT WILL
BE THE WAY A LOT OF OUR
TRANSACTIONS ARE DONE- YOU KNOW
WHETHER THE STATE NEWS OR NOT
AND PROBABLY A DECADE PROBABLY
FASTER THAN. THAN WE THINK I
THINK A LOT OF VITAL RECORDS
WILL BE THERE A LOT HEALTH
RECORDS TO BE THAT EITHER- IF
THERE WERE. FOR EXAMPLE
VERIFICATION AN EDT
UNEMPLOYMENT- TO PREVIEW
TOMORROW'S BILL EDT
UNEMPLOYMENT. BENEFITS WERE
VERIFIED AND PUT ON THE
BLOCKCHAIN YOU WOULD HAVE NO
TWENTY TO THIRTY BILLION DOLLAR
FRAUD IN THE EDT THE SYSTEM
JUSTICE. AS ONE EXAMPLE SO
THERE'S BENEFITS WITH PUBLIC
DOLLARS ON THE ON THE- ON THAT
END AS WELL AS LONG AS IT'S DONE
RIGHT AND DONE SECURELY SO. GOOD
LUCK FIGURING THIS ALL OUT. AND
I APPRECIATE THE OPPORTUNITY
PRESENTED. THANK YOU VERY MUCH
ASSEMBLYMEMBER COMING UP FOR
YOUR PRESENTATION AND I. WANT TO
ALSO EXPRESS A FULL COMMITMENT.
ON BEHALF OF THIS CHAIR AND
COMMITTEE TO DIVE DEEP INTO THE
SUBJECT AND TO DO SO
EXPEDITIOUSLY. SO THAT
CALIFORNIA CAN BE A FRONT RUNNER
AND A LEADER AND A PARTNER- WITH
OUR FEDERAL GOVERNMENT AS WE
MOVE FORWARD IN ADDRESSING THIS.
NEW TECHNOLOGY. AND A NEW WAY OF
DOING THINGS WITH THAT AGAIN
THANK YOU FOR YOUR PRESENTATION
WITH THAT I AM GOING TO. OPEN UP
FOR ADD ONS TO. OUR BILLS THAT
WE HAVE HEARD TODAY AND.
SECRETARY IF YOU'LL GO THROUGH
FILE ORDER PLEASE. AB TWO FIVE
FOUR ZERO TWO PASSES AMENDED
REFER TO COMMITTEE ON
APPROPRIATIONS GABRIEL. APRIL
AYE STONE STONE I WICKS WICKS
NOT VOTING THE BILL HAS TEN
VOTES. AB TWO EIGHT FOUR NINE
TWO PASSER FOR TO COMMITTEE ON
LABOR AND EMPLOYMENT. GABRIEL
APRIL AYE STONE STONE I WICKS.
WICKS I THE BILL HAS NINE VOTES. AB. TWO THREE EIGHT ZERO. IS
DO YOU PASS AND REFERRED TO
COMMITTEE ON APPROPRIATIONS
GABRIEL GABRIEL I STONE STONE I
WEEKS WEEKS I THE BILL HAS
TWELVE VOTES. I APOLOGIZE THAT'S. TWO THREE EIGHT ZERO. AB ONE
EIGHT FOUR ZERO TWO PASTOR FOR
TO COMMITTEE ON APPROPRIATIONS.
GABRIEL GABRIEL I STONE STONE I
WICKS WICKS I THE BILL HAS NINE
VOTES. AB TWO THREE ONE FOUR TO
PASS AS AMENDED AND REFERRED
COMMITTEE ON JOBS ECONOMIC
DEVELOPMENT IN THE ECONOMY. WHEN. WHEN I STONE STONE I WICKS
WIXII THE BILL HAS TWELVE VOTE.
AB ONE EIGHT FOUR ONE TWO PASTOR
FOR TO COMMITTEE ON
APPROPRIATIONS WHEN
WICKS I THE BILL HAS TWELVE BOTH. AB TWO TWO SIX NINE DO PASTOR
FOR TWO COMMITTEE ON APPROPRIATE
OPERATE APPROPRIATIONS WITH
RECOMMENDATION FOR CONSENT.
GABRIEL GABRIEL I. STONE AYE
STONE AYE WEEKS WEEKS I THAT
BILL PASSED TWELVE BOTH. SO WITH
THAT WITH THAT AB TWENTY EIGHT
FORTY NINE- DOES PASS AND IS OUT
OF COMMITTEE AND AB EIGHTEEN
FORTY ALSO PASSES AND IS OUT OF
COMMITTEE. WE HAVE COMPLETED OUR
AGENDA FOR TODAY'S HEARING WE
WILL BE HAPPY- I THINK. ALL ALL
MEMBERS HAVE VOTED SO WITH THAT
I EXTEND MY GRATITUDE VICE
CHAIRS BECAUSE OFFICE RULES
COMMITTEE STAFF LEGISLATIVE DATA
CENTER THE MODERATOR AND ALL WHO
ENSURED TO MAKE THIS HEARING
COME TO PASS AND TAKE PLACE AND
A GOOD ORDERLY MANNER. ASSEMBLY
BANKING FINANCE COMMITTEE IS
ADJOURNED. RIGHT YEAH. OKAY%
ASSEMBLY MEMBER. THE BILL MEDIA
. THANKS FOR I BELIEVE I MEAN
YEAH I THINK IT'S A LOT OF
PEOPLE. DO WHAT YOU CAN. AFTER
THANK YOU ROBERT. YEAH BUT.
ZERO ABOUT AN HOUR YEAH. OKAY
VERY. SERVICES YEAH. YOUR EVEN
WITH THE CITY MANAGER THE
SUCCESS OF THE OUR EARLY WITH
AND- BUT YEAH. THE WHAT THE.
FIFTY S. YEAH SOMEONE WITH-
BECAUSE THAT I AM. YEAH BAKER
WHO MAYFIELD NUMBER. AB.
RIGHT WELL THAT'S THE ONE WHERE.