ALL RIGHT. GOOD AFTERNOON AND
WELCOME TO TODAY'S HEARING OF
THE ASSEMBLY COMMITTEE ON
REVENUE AND TAXATION. I WANT TO
REMIND EVERYBODY THAT FOR THIS
AND FUTURE HEARINGS, TESTIMONY
MUST BE IN PERSON. WE ARE NO
LONGER USING A MODERATED
TELEPHONE SERVICE FOR THE BILLS
THAT ARE BEING TAKEN UP. TODAY.
WE WILL TAKE NO MORE THAN TWO
PRIMARY WITNESSES IN SUPPORT AND
TWO PRIMARY WITNESSES AND
OPPOSITION. THE THOSE WITNESSES
WILL HAVE TWO MINUTES EACH TO
PROVIDE TESTIMONY. ALL
SUBSEQUENT WITNESSES SHOULD
STATE THEIR NAME THEIR
ORGANIZATION, THEIR POSITION ON
THE BILL. ONLY FINALLY, FILE
ITEM NUMBER FIVE SB 8 60 BY
SENATOR RUBIO HAS BEEN PULLED BY
THE AUTHOR AND IT LOOKS LIKE WE
STILL DON'T HAVE A QUORUM. SO,
UM ASSEMBLYMEMBER'S AND WIN IF
YOU COULD PLEASE PRESENT AH,
ITEM NUMBER EIGHT FOR SENATOR
ARCH ILETO. SB 13. 57. HMM.
THANK YOU. THANK YOU, MADAM
CHAIR AND COMMITTEE MEMBERS ON
BEHALF OF SENATOR ARCHULETTA.
I'M HERE TO PRESENT SB 1357. SB
1357 SEEKS TO MAKE CALIFORNIA
MORE AFFORDABLE AND LIVABLE FOR
THE MEN AND WOMEN WHO SERVE OUR
NATION, WITH MANY VETERANS
THROUGHOUT THE STATE LIVING ON A
FIXED INCOME AND THE MEDIUM
PRICE OF A HOME IN CALIFORNIA,
EXCEEDING OVER $800,000.
CALIFORNIA CALIFORNIA MUST DO
MORE TO ENSURE OUR VETERANS CAN
AFFORD TO LIVE IN THE IN THIS
GREAT WHILE ALSO STRIVING TO END
VETERAN HOMELESSNESS. SB 1357
WILL PROVIDE AN ADDITIONAL
HELPING HAND TO THOSE HOMEOWNERS
WHO HAVE A 100% DISABILITY
RATING. THIS MEASURE EXPANDS THE
DIS DISABLED VETERANS EXEMPTION
TO ALLOW A FULL PROPERTY TAX
EXEMPTION FOR 100% DISABLED
VETERANS. THERE ARE SEVERAL
STATES THAT WAVE PROBABLY TAXES
FOR 100% DISABLED VETERANS.
INCLUDING FLORIDA, TEXAS,
VIRGINIA, NEW MEXICO AND HAWAII.
THIS DISABLE VETERANS EXEMPTION
, HONORS THEIR BRAVERY AND
COMMITMENT TO OUR NATION WHILE
ALSO ASSISTING OUR DISABLED
VETERANS WHO ARE STRUGGLING WITH
THE HIGH COST OF LIVING IN
CALIFORNIA. FOR THESE REASONS. I
RESPECTFULLY ASK FOR YOUR I VOTE
WITH ME HERE TODAY TO TESTIFY
AND SUPPORT OF THE BILL IS ARMY
VETERAN AND PURPLE HEART
RECIPIENT, ERIC CASTRO AND ALSO
RETIRED ARMY VETERAN CAN
SHOEMAKE. PLEASE. QUÊ THANK YOU.
GOOD AFTERNOON AS, UH, THIS
YOUNG LADY MENTIONED. MY NAME IS
KEN SHOEMAKE. I'M 100% RATED
SERVICE DISABLED VETERAN HAVING
SERVED WITH THE THIRD INFANTRY
DIVISION. DURING THE VIETNAM
ERA. HOW ARE YOU? I WANT TO
THANK SENATOR ARCHULETTA, HIS
STAFF AND THE MEMBERS OF THE
CALIFORNIA LEGISLATURE THAT HAVE
VOTED FOR THIS IMPORTANT
LEGISLATION THAT BENEFITS THE
SERVICE, DISABLED VETERANS
LIVING IN OUR GREAT STATE. I
KNOW SOMETHING ABOUT HOW OUR
STATE ON OUR VETERANS. I
PREVIOUSLY SERVED AS THE
PRESIDENT OF THE DISABLED
VETERAN BUSINESS ALLIANCE. IT'S
A STATEWIDE ORGANIZATION THAT
HELPED THEM POWER. DISABLED
VETERAN ENTREPRENEURS. FROM THAT
UNIQUE VANTAGE POINT I SAW
FIRSTHAND OF THE STATE OF
CALIFORNIA IS THE GOLD STANDARD
FOR VETERANS BENEFITS. AND SETS
THE BAR FOR THE REST OF THE
NATION. NO OTHER STATE YET
MATCHES US. THANK YOU FOR YOUR
RESPECTIVE ROLE IN CALIFORNIA'S
NATIONWIDE. RECOGNITION AS A
TRUE GOLD STANDARD FOR VETERANS.
I WANT TO CLOSE BY DISCUSSING
HOW MY WIFE AND I WILL HOPEFULLY
PERSONALLY BENEFIT FROM THIS
LEGISLATION. WE'RE BOTH 76 YEARS
OLD, SO WE MAY BE OVERLY
OPTIMISTIC. BUT THAT SAID, WE
KNOW MANY OTHERS WILL CERTAINLY
BENEFIT. MY WIFE HAS PARKINSON'S
DISEASE. AS A RESULT, WE SOLD
OUR HOME IN THE FOOTHILLS TO
MOVE HER TO DOWNTOWN SACRAMENTO.
BE CLOSER TO MEDICAL CARE. AND
SO THAT WOULD HAVE. WE WOULD
HAVE ACCESS TO PAIR TRANSFERRED.
PAIR OF TRANSIT AND SIDEWALKS
WHERE WE COULD ACTUALLY USE HER
WHEELCHAIR AND MOBILITY SCOOTER.
HOWEVER FOR SEVERAL REASONS WE
WERE UNABLE TO BUY ANOTHER HOME
WITHIN THREE YEARS, SO WE LOST.
THE ABILITY TO TRANSFER OUR
LOWER PROPERTY TAX BASIS. THIS
LEGISLATION WILL EVEN BE BETTER
THAN THE BENEFIT WE LOST AS WE
DOWNSIZE AND RE ENTER THE
HOUSING MARKET. PLUS IF I SHOULD
DIE, MY WIFE WILL CONTINUE TO
ENJOY THIS IMPORTANT BENEFIT.
THANK YOU FOR ALLOWING ME TO
PROVIDE MY TESTIMONY. GOOD
AFTERNOON, EVERYBODY. MY NAME IS
ERIC SERGEANT ERIC CASTRO,
RETIRED U S ARMY. AND I WAS 19
YEARS OLD. WHEN I JOINED THE
MILITARY. I WAS EXCITED. I
DIDN'T WANT TO DO COMMUNITY
COLLEGE AT THE TIME. I GOT LUCKY
ENOUGH TO DEPLOY TO IRAQ IN 2000
AND THREE GOT TO DO THE SUNNI
TRIANGLE. SO BACK THERE RAMADI
FOR LOSER. I WAS THERE THERE
BEING OF THE WAR. UNFORTUNATELY
FIXING UNTIL INTO MY DEPLOYMENT.
I WAS INJURED. I GOT HIT WITH
SOVIET LAW TOOK MY LEG LEG OFF
COMPLETELY. COME BACK TO
STATESIDE. I WAS AWARDED THE
PURPLE HEART BY THE PRESIDENT OF
TIME. NOW NOW I'M BACK HOME. NOW
YOU HAVE MY HOME NOW I WAS ABLE
TO SALVAGE MY LIFE BACK TO THE
FULLEST. THIS BILL WILL
LITERALLY SAVE OUR FAMILY LIKE
LITERALLY THOUSANDS OF DOLLARS A
YEAR BECAUSE POVERTY HAS GONE SO
HIGH UP IT CAUSES THAT WE HAVE
TO SAVE OF THROUGHOUT THE
THROUGHOUT THE YEAR JUST TO PAY
THIS THIS PROPERTY TAX. THE
MAJORITY OF 100% DISABLED
VETERANS ARE ON THE SET INCOME.
THIS IS A HUGE BILL THAT WE HAVE
TO OVERCOME EVERY SINGLE YEAR OR
EVERY SIX MONTHS. SO I ASK YOU
TO PLEASE VOTE IN FAVOR WITH
THIS BILL AND THANK YOU FOR
HEARING ME. DO WE HAVE ANY OTHER
WITNESSES IN SUPPORT? I'M MY
NAME IS JUSTIN TURNER AND A
VETERAN SERVICE REPRESENTATIVE
AND 100% DISABLED VETERANS. UM I
JOINED THE MILITARY AT NINE
RIGHT AFTER 9 11, A PART OF
BUSH'S TROOP SURGE IN THE GREEN
ZONE. I WAS BLOWN UP THREE TIMES
BY IDEA WENT PARALYZED AND HAVE
AN EMERGENCY SURGERY ON MY NECK.
I WAS 18 OF MY BUDDIES IN THE 15
MONTHS. WHEN I RETURNED HOME, I
LOST SIX MORE OF MY COMRADES TO
SUICIDE AND MURDER. UM RIGHT
NOW, A LOT OF VETERANS ARE TO
SIGN THE STAY IN CALIFORNIA
LEAVE IF THERE'S ANY BETTER
OPPORTUNITIES WITH GAS GOING UP
IN MY DAY TO DAY JOB I HEAR
VETERANS TALKING ABOUT DO THEY
BUY THEIR KIDS? SCHOOL SUPPLIES?
DO THEY FILL THEIR CAR UP WITH
GAS? THIS MAY BE A LITTLE STEP
IN THE RIGHT DIRECTION THAT CAN
HELP US STAY IN CALIFORNIA.
HISTORICALLY VETERANS HAVE
ALWAYS KIND OF GOT THE SHORT END
THE STICK BY THE STATE AND
FEDERALLY AND TODAY WE HAVE AN
OPPORTUNITY TO GIVE A HAND UP,
NOT A HANDOUT AND ALLOW VETERANS
TO STAY HERE IN THE WONDERFUL
STATE. THEY PROMISED TO DEFEND
THIS NATION. THANK YOU SO MUCH.
OTHER SUPPORTERS. MADAM CHAIR
REMEMBERS WHEN I SAID CHAVEZ
WITH THE CALIFORNIA ASSOCIATION
OF REALTORS AND SUPPORT THANK
YOU. MADAM CHAIR MEMBERS, JEROME
ENCINAS ON THE BEHALF OF THE
GRANITE DATA SOLUTIONS,
DISABLED, VETERAN OWNED COMPANY
WITH A 70% DISABLED WORKFORCE
AND STRONG SUPPORT. THANK YOU.
YOU DO WE HAVE ANY WITNESSES IN
OPPOSITION? ALRIGHT THEN. UM WE
ARE GOING TO JUST REAL QUICKLY
DO ROLL CALL FOR CORN. IRWIN.
HERE. WHEN GRAY GRAYSON. LIVING.
MAZE. MULLEN. PETRIE-NORRIS
WORK. RIVAS SEYARTO. WE HAVE
CORN. I APOLOGIZE. WE HAVE TO
TAKE IT WHEN WE CAN GET IT. ALL
RIGHT. DO WE HAVE QUESTIONS FROM
THE PANEL? ASSEMBLYMEMBER'S
WORK. YES SO, UM I OF COURSE
VOTED FOR A SIMILAR BUT LESS
COSTLY BILL THAT
ASSEMBLYMEMBER'S PHÊN AND YOU
RECALL. YOU WELL, WE ALL DID.
AND I THINK WE WOULD ALL VOTE
FOR YOUR BILL. BUT IT MAY NOT
GET OUT OF APPROPRIATIONS THAT
MAY BE VETOED BY THE GOVERNOR. I
HOPE NOT. BUT I REALLY THINK
THAT YOU NEED TO WORK. YOU'LL
PROBABLY BE A SENATOR NEXT YEAR.
I DON'T WANT TO GIVE YOU EARLY.
CONGRATULATIONS BUT IT SEEMS
RATHER LIKELY. PERHAPS YOU CAN
WORK WITH SOME PEOPLE IN THE
SENATE AND ASSEMBLY JUST TO GET
THIS IN THE BUDGET. IT'S NOT A
LOT OF MONEY. ONCE IT'S IN THE
BUDGET, IT SHOULD JUST SELL
THROUGH. SO MY HOPE IS THAT WE
DO GET YOUR BILL THROUGH. BUT IF
WE DON'T UM, YOU KNOW, I WON'T
BE HERE BUT UM YOU WANT ME TO
LOBBY SOMEBODY? I WILL. VERY
GOOD, GREAT BILL. LET'S
CENTRALIZE SENATOR ARCHULETTA
NOW. THANK YOU. DO WE HAVE ANY
OTHER QUESTIONS OR COMMENTS? ALL
RIGHT. WELL, THANK YOU SO MUCH
FOR ALL THREE OF YOU FOR
pA TREMENDOUS DEBT OF GRATITUDE.
AND, UM WERE GREAT, VERY
GRATEFUL FOR WHAT YOU'VE DONE.
SO THANK YOU FOR THAT, AND THEN
I WOULD LIKE TO PASS ON TO
SENATOR ARCH LETTER THAT, JUST
AS DR PARK SAID. THIS BILL. A
VERY SIMILAR BILL DID NOT PASS
THROUGH APPROPRIATION, SO I
WOULD LIKE TO ENCOURAGE HIM TO
LOOK AT WAYS THAT WE CAN MAYBE
LOWER THE COST SO THAT THE BILL
HAS A BETTER CHANCE TO GET
THROUGH APPROPRIATIONS. AND THEN
AS AGAIN DOCTOR QUIRKE MENTIONED
, WE NEED TO HAVE, UM SOMETHING
IN THE BUDGET, WHICH WOULD MAKE
THE PAST QUITE A BIT EASIER. BUT
WE REALLY WANT TO DO THIS FOR
YOU. I'M IN VERY STRONG SUPPORT.
SO THANK YOU VERY MUCH FOR YOUR
PRESENTATION. OH I'M SORRY. DID
YOU DID YOU NEED TO CLOSE MISS?
OH, I WILL RESPECTFULLY ASK FOR
AN I VOTE WHEN IT'S APPROPRIATE.
ALRIGHT. OKAY, THANKS.
ALL RIGHT. WE HAVE NO IDEA HOW
LONG THE SENATE WILL BE. AND SO
, UH, WE'RE GOING TO TAKE A
RECESS FOR, UH, ABOUT HALF AN
HOUR 35 MINUTES TILL 3 30. AND
WE'LL COME BACK RIGHT AT THAT
TIME. HOPEFULLY THE SENATE WILL
BE DONE.
ALL RIGHT. UM WE ARE BACK AND I
WILL. I'M GOING TO CALL SENATOR
CHOI ELBOW UP. AND THIS IS FILE
ITEM TO SP 13 12. SENATOR, YOU
MAY BEGIN. AYE. I ALWAYS
APOLOGIZE FOR THE
MISPRONUNCIATION. I THINK STAFF
IS TELLING ME AGAIN. YOU GOT IT
WRONG. SORRY OKAY. I KNOW VOGUE.
NOT EASY. TRY MY FIRST ONE. SO
THAT'S MY PARENTS. THANK YOU,
MADAM CHAIR AND MEMBERS SENATE
BILL 13 12 6 TO HARMONIZE
CALIFORNIA'S MARKETPLACE
FACILITATOR LAWS WITH CURRENT
PRACTICE BY CLEARLY IDENTIFYING
THE MARKETPLACE SELLER AS THE
TAX RESPONSIBLE PARTY IN CAR
RENTAL TRANSACTIONS. FACILITATED
BY AN ONLINE TRAVEL COMPANY.
MANY STATES HAVE ADOPTED
MARKETPLACE FACILITATOR LOSS
GOVERNING SALES AND USE TAX
REMITTANCE OBLIGATIONS WHEN
BUSINESS PARTNERS TO SELL GOODS
AND OR SERVICES THROUGH THIRD
PARTY INTERMITTENT INTERMITTENT
BRODY AREAS. ABOUT ACCENTS HERE
. RENTAL CUSTOMERS FREQUENTLY
MODIFY THEIR BOOKINGS AT THE
COUNTER, WHICH CAN DRASTICALLY
CHANGE THE TAXES AND OTHER
CHARGES THAT APPLY TO THE RENTAL
. THIS RESULTS IN THERE BEING
MULTIPLE RETAILERS FOR DIFFERENT
COMPONENTS OF A SINGLE CAR
RENTAL BOOKING. FURTHER
COMPLICATING THE TAX COLLECTION
AND REMITTANCE REQUIREMENTS
UNDER THE NEW MARKETPLACE
FACILITATOR LAW. CAR RENTAL
COMPANIES HAVE DEEP INDUSTRY
KNOWLEDGE, COMPLETE INFORMATION
ABOUT THE TRANSACTION IN OUR
UNDER PERPETUAL AUDIT WITH THE
CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION. SHIFTING THE
TAX RESPONSIBILITY TO PLATFORMS
WHO ARE ILL EQUIPPED TO NAVIGATE
COMPLEXITIES ONLY LEADS TO
CONFUSION FOR THE PLATFORM
RENTAL CAR COMPANIES IN CD TIFA
AUDITORS, RENTAL CAR COMPANIES
ARE ALREADY REMITTING TAX AND
THESE TRANSACTIONS AND ARE UNDER
CONTINUOUS ARTISTS BY THE STATE.
SPEED 13 12 WILL CLEARLY
IDENTIFY THE MARKETPLACE SELLER
AS A TAX RESPONSIBLE PARTY IN
CAR RENTAL TRANSACTIONS. WE HAVE
BROUGHT ALL PARTIES TO THE TABLE
, GRATEFUL FOR THAT, INCLUDING
THE RENTAL CAR COUNT COS THE
MARKETPLACE FACILITATORS IN THE
SEAT FA. IN ORDER TO PROVIDE A
COMPREHENSIVE CODIFICATION OF
CURRENT CAR RENTAL TAX
REMITTANCE PRACTICES. I WILL BE
ACCEPTING THE COMMITTEE'S
PROPOSED AMENDMENTS. AND
RESPECTFULLY ASK FOR YOUR VOTE.
JOINING ME TODAY TO TESTIFY AND
SUPPORT IS ALYSSA STINSON FROM
EXPEDIA GROUP. RIGHT THANK YOU.
GOOD AFTERNOON. CAN WE MEMBERS
AND MADAM CHAIR THANK YOU FOR
HAVING US HERE TODAY. MY NAME IS
AL ASSISTANCE IN I HAVE THE
PRIVILEGE OF SERVING AS THE
REGIONAL GOVERNMENT AFFAIRS
MANAGER FOR EXPEDIA GROUP.
EXPEDIA GROUP IS A FAMILY OF
TRAVEL PLANS WITH WHICH HAS
EXPEDIA, ORBITZ, HOTWIRE,
TRAVELOCITY, ETCETERA. UM I'D
ALSO LIKE TO THINK THAT
COMMITTEE FOR WORKING WITH US ON
THIS BILL TODAY. ESTÁN NATURAL
CHILDBIRTH MENTIONED SP 13 12
WILL HARMONIZE CURRENT PRACTICE
WITH THE. WITH CALIFORNIA STATE
LAW AND CLEARLY IDENTIFY THE TAX
RESPONSIBLE PARTY FOR ALL CAR
RENTAL TRANSACTIONS FACILITATED
BY A CAR RENTAL OR AN ONLINE
TRAVEL COMPANY. RIGHT NOW, THE
RENTAL CAR COMPANIES ARE
REMITTING TAX WITH NO ISSUES AND
MATERIAL TAX LEAKAGE, AND WE
WOULD LIKE TO CLEARLY IDENTIFY
THOSE COMPANIES AS THE
RESPONSIBLE PARTY, EXPEDIA GROUP
AND OTHER RLATED ONLINE TRAVEL
COMPANIES, AS MENTIONED, DO NOT
HAVE THE NECESSARY INFORMATION.
TO ADEQUATELY REMIT TAX ON THESE
BOOKINGS. WE RESPECTFULLY ASK
YOUR I VOTE ON THIS NON
CONTROVERSIAL, UH, MEASURE AND
I'D BE HAPPY TO ANSWER ANY
QUESTIONS. ALRIGHT, VERY GOOD.
ANY OTHER WITNESSES IN SUPPORT?
WITNESSES AND OPPOSITION.
QUESTIONS FROM THE COMMITTEE.
ASSEMBLYMEMBER'S WORK THIS. I AM
REALLY HAPPY YOU'VE TAKEN ON
THIS BILL, AND, UH, I HOPE WE
ALL VOTE FOR IT. I MOVED. LET'S
SEE WE HAVE QUORUM, SO I'LL MOVE
THE BILL. R RIGHT, AND SENATOR
WOULD YOU LIKE TO CLOSE? I
RESPECTFULLY ASK FOR A NIGHT
BOAT. ALRIGHT AND, UH, WE HAVE A
MOTION BY ASSEMBLYMEMBER'S WORK
AND A SECOND FI ASSEMBLYMEMBER'S
PETRIE-NORRIS. UM YOU DO ENJOY A
I WRECK O ON THIS BILL. SO CAN I
HAVE THE SECRETARY? PLEASE DO
THE ROLE. IRWIN. I WHEN I WIN I
GRAY GRAYSON. LEVIN. LEVINE. I
MADE MULLEN. ON PETRIE-NORRIS.
PETRIE-NORRIS IKE WORK, REVIS
SARATOGA, AND THE MOTION WAS D
PASSES AMENDED TO APPROPRIATIONS
. RIGHT. THANK YOU. BUILDS OUT
SCOTT SIX. THAT BILL IS OUT. ALL
RIGHT. SENATOR PORTANTINO. AND
THIS IS A, UH, FOR TESTIMONY
ONLY ITEM WHENEVER YOU'RE READY.
ITEM NUMBER FILE ITEM NUMBER
THREE SB 457. THANK YOU, MADAM
CHAIR AND COMMITTEE MEMBERS. UM
SP SP 457, WHICH SEEKS TO ALLOW
A CREDIT AGAINST THE NET TAX IN
THE AMOUNT OF $2500 FOR EACH
HOUSEHOLD MEMBER THAT EXCEEDS-THE NUMBER OF REGISTERED
VEHICLES. THIS WOULD BE FOR
TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY. 1ST 2023 THE
AMOUNT OF THE ALLOWED CREDIT
WOULD BE LIMITED TO $7500.
ACCORDING TO CALIFORNIA
DEPARTMENT OF MOTOR VEHICLES,
THE POPULATION OF CALIFORNIA IS
39.46 MILLION PEOPLE, AND THERE
ARE 26.87 MILLION REGISTERED
AUTOMOBILES. SINGLE OCCUPANCY
VEHICLES REMAIN THE NUMBER ONE
CONTRIBUTOR TO GREENHOUSE GASSES
. STUDIES SHOW THAT EXPOSURE TO
PARTICULAR POLLUTION FROM
VEHICLES IS NOT EQUALLY
DISTRIBUTED ACROSS THE STATE.
THE LOWEST INCOME HOUSEHOLDS IN
CALIFORNIA LIVE WHERE THE
PARTICULAR POLLUTION IS 10%
HIGHER THAN THE STATE AVERAGE,
WHILE THOSE WITH THE HIGHEST
INCOMES LIVE WHERE THE POLLUTION
IS 13% BELOW THE STATE AVERAGE.
SINGLE OCCUPANCY VEHICLES ARE
NOT ONLY A LEADING SOURCE OF
CLIMATE POLLUTION, THEY ARE ALSO
ONE OF THE LEADING CAUSES OF
DEATH INJURIES AND HEALTH
PROBLEMS, ACCORDING TO THE
NATIONAL HIGHWAY TRAFFIC SAFETY
ADMINISTRATION, NEARLY 10% OF
ALL TRAFFIC DEATHS IN THE
COUNTRY IN THE COUNTRY IN 2021
OCCURRED ON CALIFORNIA ROADS,
THE PERCENTAGE OF THE ESTIMATED
MOTOR VEHICLE TRAFFIC FATALITIES
IN CALIFORNIA INCREASED BY 10.7%
IN 2021. AND EXPERTS EXPECT THE
NUMBERS SADLY TO INCREASE IN
2022 AS WELL. AS THE IMPACTS OF
CLIMATE CHANGE OR FELT ACROSS
THE STATE AND AS THE NUMBERS OF
CAR ACCIDENTS ARE RISING EVERY
YEAR, AS BEFORE, 57 INVESTS IN
THE FUTURE BY ENCOURAGING MORE
CALIFORNIANS TO USE PUBLIC
TRANSIT CYCLING SCHOOL DURING
WALKING AND OTHER SUSTAINABLE
MODELS OF TRANSPORTATION. I KNOW
THE ANALYSIS INDICATES THAT THE
BILL DOES NOT COMPLY WITH THE
COMMITTEE'S TAX EXPENDITURE
POLICY. UM ONCE WE BECAME BECAME
AWARE OF THESE ISSUES, WE
SUBMITTED AMENDMENTS TO COUNCIL
WHICH WE SHOULD HAVE BACK
SHORTLY. THE MOCK UP HAVE BEEN
SHARED WITH YOUR STAFF AND MAKE
ADDITIONAL MINOR TECHNICAL
CHANGES BY REMOVING CO AUTHORS
THAT WERE INADVERTENTLY LEFT ON
THE MEASURE WHEN WE LAST AMENDED
THE BILL, AND I BELIEVE WE'RE
ALSO TALKING ABOUT THE SUNSET
PROVISION THAT THE COMMITTEE
REQUIRES AS WELL. AND OBVIOUSLY
WHEN YOU ARE WHEN YOU DEAL WITH
THE BILL FOR VOTE. I WOULD
RESPECTFULLY ASK FOR AN I VOTE.
THANK YOU, SENATOR PORTANTINO
ARE THERE ANY, UM, PRIMARY
WITNESSES WISHING TO SPEAK IN
SUPPORT. DO NOT KNOW. NO
WITNESSES, OKAY, ANY OTHER
WITNESSES IN SUPPORT? PRIMARY
WITNESSES AND OPPOSITION.
WITNESSES AND OPPOSITION. OKAY
QUESTIONS FROM THE COMMITTEE.
ASSEMBLYMEMBER'S CORK. UH,
SENATOR. MY CONCERN IS THAT THIS
WILL BE MORE OF REWARD THAN AN
INCENTIVE. FOR EXAMPLE, I LIVE
IN A IN A APARTMENT BUILDING
WITH OTHER SENIORS. AND MOST
COUPLES HAVE ONE CAR BECAUSE
THAT'S ALL THEY NEED. AND THAT
THEY'D BE GLAD TO GET $2500. I'M
SURE BUT WHEN I WAS WHEN MY WIFE
AND I WERE YOUNGER, AND WE LIVED
NEAR THE BART STATION, MY WE HAD
ONE CAR AND THEN WE GOT KIDS AND
IT BECAME IMPOSSIBLE AND WE GOT
TO I'M JUST NOT SURE THAT I
THINK MOST OF THIS MONEY IS
GOING TO GO. TO PEOPLE WHO
ALREADY HAD ONE CAR, AND IT
WON'T CONVINCE PEOPLE SAY WHO
HAVE YOU KNOW? WELL IN THE BAY
AREA, THERE'S TRANSIT. A LOT OF
PEOPLE CAN'T AFFORD TO LIVE IN
THE COUNTIES RIGHT AROUND THE
BASE, SO THEY GO OUT TO SAN
JOAQUIN VALLEY. AND THEY HAVE NO
CHOICE BUT TO HAVE TWO CARS AND
THEY'RE LOWER IN INCOME. AND I
THINK IT'S THESE LOW INCOME
PLACES THAT ARE MOST LIKELY TO
HAVE TWO CARS IN THE HIGHER
INCOME. YOUR TRANSIT IN THE CITY
ARE LIKELY TO HAVE ONE CAR SO MY
CONCERN IS JUST THAT MOST OF THE
MONEY IS GOING TO GO TO PEOPLE
WHO WOULD HAVE HAD ONE CAR ONLY.
DO YOU HAVE A AM I WRONG? WHERE
YOUR CONCERN AND I OBVIOUSLY
IT'S ONE OF THE THINGS THAT I
WANT TO IMPROVE IN THE BILL IS
WANT IT TO BE. MHM. RIGHT? AYE.
MY SECOND CAR MAY OR MAY NOT BE
A LUXURY OR MHM. MOVE TOWARDS
THE TRANSIT AREA, AND I'M GOING
TO GIVE UP MY CAR OR NOT GIVE UP
MY CAR. SO THAT'S THE WHOLE
PURPOSE OF THIS BILL IS TO
CREATE IT AS AN INCENTIVE, AND I
AGREE WITH YOUR QUESTION. AND
I'M OPEN TO TRYING TO FIGURE OUT
A WAY TO MAKE IT MORE OF AN HMM.
WORDS THAT'S ONE OF THE THINGS I
WANT TO CONTINUE TO WORK ON IT.
HOPEFULLY IF THE BILL GETS OUT
OF THIS COMMITTEE, BUT IF YOU
HAVE THOUGHTS, OKAY? I WILL
DEFINITELY RIGHT ON THE POINT
THAT WE WANT OKAY. AND IF I I'LL
START THINKING ABOUT IT, AND OF
COURSE, WE HAVE GREAT STAFF ON
THIS COMMITTEE, AND MAYBE
THEY'LL HAVE SOME IDEAS AS WELL.
SURE YOU INCLUDED MR RUFFIN,
THAT GREAT STAFF? ABSOLUTELY. OH
I'VE BEEN ON THIS COMMITTEE FOR
EIGHT YEARS NOW. I LOVE IT.
ASSEMBLYMEMBER'S QUIRK ALWAYS
HAS THOUGHTS. SO JUST LET'S MAKE
THAT CLEAR, SO THE ANALYSIS
NOTED THAT THERE WERE SOME
POTENTIAL UNINTENDED
CONSEQUENCES. AND WE WOULD LIKE
TO WORK WITH YOU ON THAT. WE
DEFINITELY I DEFINITELY WANT TO
IMPROVE THE BILL. MAKE SURE WE
ADDRESS YOUR CONCERNS. I KNOW
THE SUNSET WAS ONE PARTICULAR
PIECE, BUT I THINK IT'S A IT'S A
NOVEL POLICY. TRY TO YOU KNOW,
WE'RE FOCUSING SO MUCH ON ON
GAS. AS WE SHOULD, FROM A STATE
PERSPECTIVE, BUT WE ALSO SHOULD
FOCUS ON INCENTIVES AS AS URBAN
COMMUNITIES AND SUBURBAN
COMMUNITIES AND RURAL
COMMUNITIES WRESTLE WITH
TRANSPORTATION ISSUES. WE SHOULD
LOOK AT ALL RIGHT, SENATOR.
WOULD YOU LIKE TO CLOSE?
ACTUALLY ASKED FOR AN I VOTE
WHEN APPROPRIATE, ALRIGHT? AND
THANK YOU FOR YOUR PRESENTATION
. AND THEN I UNDERSTAND YOU'RE
GONNA ALSO BE PRESENTING FILE
ITEM FOR SB 843. YES ON BEHALF
OF SENATOR GLAZER AND A HOST OF
OTHER CO AUTHORS. I WANT TO
START BY THANKING THE CHAIR AND
THE COMMITTEE FOR ALLOWING ME TO
PRESENT THIS BILL ON BEHALF OF
TO
CO AUTHORS OF THIS IMPORTANT
LEGISLATION. FINALLY I WANT TO
THANK THE EXCELLENT STAFF ARE
WORKING WITH THE SENATOR'S
OFFICE AND WOULD BE ACCEPTING
THE COMMITTEE SUGGESTED
AMENDMENT. UM SB 843 WOULD
INCREASE THE REDDISH TAX CREDIT
FOR ALL FIRST. TIME FOR THE
FIRST TIME IN 42 YEARS, THE LAST
INCREASE WAS IN 1979. FOR THOSE
OF YOU WHO ARE DOING THAT. THAT
WAS THE YEAR I GRADUATED HIGH
SCHOOL, UM, AN AVERAGE RENTS IN
CALIFORNIA HAVE MORE THAN
TRIPLED. COURTING THE
LEGISLATIVE ANALYST'S OFFICE.
RENTERS HAVE BEEN DISAPPOINTED,
DISPROPORTIONATELY AFFECTED BY
THE ECONOMIC CONSEQUENCES OF
COVID 19 WRITERS. RENTERS ON
AVERAGE, EARN LESS THAN
HOMEOWNERS AND WERE MORE AT RISK
OF LOSING THEIR JOB BECAUSE OF
THE STATE HOME ORDERS. CURRENTLY
THE CREDIT IS JUST $60 FOR A
SINGLE FILER AND 1000 FOR JOINT
FATHERS AND HEADS. OF HOUSEHOLDS
. THE BILL WOULD INCREASE THOSE
CREDITS TO 501,000. UM THE
MEASURE WOULD ALSO MAKE THE
RENTERS TAX CREDIT REFUNDABLE,
MEANING ALL RENTERS WHO ARE
ELIGIBLE, RECEIVE THE FULL
AMOUNT OF THE CREDIT, EVEN IF
THAT EXCEEDS THEIR INCOME TAX
OBLIGATION. IN ALL,
APPROXIMATELY ONE MILLION
RUNNERS WHO NOW RECEIVE LITERAL
WINDOW CREDIT. WOULD BECOME
NEWLY ELIGIBLE, ACCORDING TO THE
FRANCHISE TAX BOARD ESTIMATES,
THOUGH THIS PROPOSAL WAS PART OF
THE SENATE BUDGET PROPOSAL, THAT
REQUEST IS NOT IN THE JOINT
LEGISLATIVE PROPOSAL AS
CURRENTLY DRAFTED. WHILE FUNDING
IS NOT YET BEEN PROVIDED AS
IMPORTANT TO PLACE THIS NEW
STRUCTURE IN PLACE, A RENTERS IN
NEED CAN RECEIVE RELIEF WHEN IT
BECOMES FUNDED. OBVIOUSLY
SENATOR GLASER IS COMMITTED IN
THE MONTHS AHEAD TO CREATE AN
AVENUE FOR THIS BILL TO BE IN
THE BUDGET. THE BILL WILL
PROVIDE LONG OVERDUE CHANGES ON
THE RENTERS TAX CREDIT AND
PROVIDES FINANCIAL RELIEF TO
THREE MILLION LOW AND MIDDLE
INCOME RENTERS WITH ME TODAY, I
HAVE DAVID KNIGHT FROM THE
CALIFORNIA COMMUNITY ACTION
PARTNERSHIP ASSOCIATION TO
TESTIFY AND SUPPORT. THANK YOU.
GOOD AFTERNOON, AS SAID I'M
DAVID KNIGHT, THE EXECUTIVE
DIRECTOR FOR THE CALIFORNIA
COMMUNITY ACTION PARTNERSHIP
ASSOCIATION. NOW WE ARE
NONPROFIT MEMBERSHIP
ORGANIZATION IS COMPRISED. OF 60
COMMUNITY ACTION AGENCIES AND
COMMUNITY SERVICE BLOCK GRANT
ELIGIBLE ENTITIES THROUGHOUT ALL
58 COUNTIES IN CALIFORNIA. NOW
EACH AGENCY WE REPRESENT CREATES
LOCALLY DEVELOPED SOLUTIONS AND
OPPORTUNITIES AS WELL AS THE
MINISTER IS CRITICAL FUNDING AND
SERVICES TO HELP ECONOMICALLY
DISADVANTAGED CALIFORNIANSIN
MARGINALIZED COMMUNITIES TO
MAINTAIN STABILITY AND CREATE
THE OPPORTUNITY TO ACHIEVE SELF
RELIANCE. ON BEHALF OF CAL CAP A
BORDER DIRECTORS IN THE AGENCY'S
I'M HERE TO TESTIFY FOR SUPPORT
ON SB 843, AUTHORIZED BY SENATOR
STEVE GLAZER AND CO AUTHORIZED
OVER 50 LEGISLATORS AND IS
BIPARTISAN, INCLUDING SUPPORT
FROM SIX MEMBERS OF THIS VERY
COMMITTEE. NO CAL CAP MEMBERS
FOCUS HEAVILY ON CREATING THE
OPPORTUNITY FOR ALL CALIFORNIANS
TO HAVE THE ABILITY TO PROSPER
AND BE A PART OF THEIR OWN
COMMUNITIES, WHICH IS WHAT
BRINGS ME HERE TODAY. OUR STATE
HAS BEEN FOCUSING A LOT ON
HOUSING. WE HAVE TO HEAR THE
WORDS HOUSING HOMELESS OR RENT
UNDER FROM ALL ELECTED OFFICIALS
DAILY. WE ARE OFTEN MENTIONED
HOMELESS AS A PROBLEM IN OUR
STATE. YET IT ACTUALLY IS
CURRENTLY THE SOLUTION TO
MULTIPLE OTHER PROBLEMS. NOW ONE
OF THE MAJOR PROBLEMS IS THE
CONTINUED RISE IN RENTAL CLOTH
RENTAL COST. PERSONALLY I WAS
NOTIFIED A MONTH AGO THAT I
WOULD RECEIVE A 16% RENT
INCREASE AND ULTIMATELY HAD TO
RELOCATE TO SIMPLY KEEP COSTS
REASONABLE. NOW, WHILE THIS BILL
IS NOT TARGETED FOR ME DIRECTLY,
IT DOES SHOW HOW ALL RENTS ARE
CRAZY, INCREASING IN THE NEED
FOR RENT RELIEF AS A PARENT,
ESPECIALLY FOR THE LOW INCOME
FAMILIES IN OUR STATE. CAL CAPA
MEMBERS ALSO FOCUSED HEAVILY ON
CREATING OPPORTUNITIES THAT LAST
IN ORDER TO CREATE SELF RELIANCE
FOR OUR FAMILIES OF LOW INCOME
NOW SENATOR GLASER'S MEASURES A
MAJOR STEP IN THE RIGHT
DIRECTION FOR EACH FAMILY. WE
SERVE WHILE OUR STATE IS
PROBABLY PROPOSED A VARIETY OF
MEASURES TO PROVIDE IMMEDIATE
SHORT TERM RELIEF. WE MUST ALSO
FOCUS ON OPPORTUNITIES THAT
ACTUALLY LAST IT WILL TAKE YEARS
TO MEET THE GOALS OF ECO HOUSING
IN THIS STATE. BUT RENTERS ARE
STRUGGLING TODAY. THIS TAX
CREDIT WILL GIVE OPPORTUNITIES
TO A FAMILY RIGHT ON THE VERGE
OF TIPPING INTO HOMELESSNESS.
THERE'S ALSO REAL PRACTICAL
SOLUTION AND ENSURES LONG TERM
CHANCES FOR OUR FAMILIES AND
COMMUNITIES. FUTURE IN
CONCLUSION. SB 8 43 IS NOT ONLY
SMART PUBLIC POLICY, BUT NOW IS
THE TIME TO USE IT. AS MENTIONED
BY THE SENATOR, HOMEOWNERS
RECEIVED 5.8 BILLION IN TAX
RELIEF EACH YEAR, WHILE RENTERS
HAVE PREVIOUSLY ONLY RECEIVED
1.2 BILLION WHERE SIGNALS TO THE
MAJORITY OR THE 52% OF
CALIFORNIA'S WHO RENT THEY
SHOULD BE REQUIRED SO THE
HEAVIER PORTION OF OUR NEEDS
WHILE BEING LESS VALUED AS A
PART OF OUR SYSTEM. DURING SUCH
A TIME OF NEED FOR RENTING
FAMILIES. NOW IS THE TIME WE
GIVE RENTERS THEIR FAIR
OPPORTUNITY AT THE RECOVERY. IN
THE FISCAL YEAR WITH SUCH A
SURPLUS, OR EVEN IN THE FUTURE
YEARS WITH LESS. IT'S EXTREMELY
HARD TO UNDERSTAND WHY LOW
INCOME RENTERS ARE MAKING LESS
THAN 50,000 SHOULD NOT BE THE
FIRST CONSIDERED FOR RELIEF AND
COVERING OUR STATE'S BUDGET
PRIORITIES. THESE ARE THE
FAMILIES WITH THE LEAST INCOME
AND THE LEAST FAMILY EQUITY. I
WANT TO THANK SENATOR GLAZER FOR
THE INVITATION TO ADVOCATE ON
BEHALF OF PASSAGE OF SENATE BILL
843 AND FOR THE LEADERSHIP OF
THIS COMMITTEE AND RECOGNIZING
THE SUPPORT EMPOWERMENT THIS
BILL CREATES FOR OUR FAMILIES
AND FOR ALLOWING ME THE
OPPORTUNITY TO SPEAK TODAY ON
BEHALF OF CAL CAMPUS BORDER
DIRECTORS, OUR MEMBERSHIP AND
THE COMMUNITIES LOW INCOME WE
SERVE. THANK YOU. THANK YOU ANY
OTHER WITNESSES IN SUPPORT?
MADAM CHAIR AND MEMBERS RAND
MARTIN ON BEHALF OF THE AIDS
HEALTHCARE FOUNDATION, AND ITS
HOUSING IS A HUMAN RIGHT
DIVISION. VERY STRONG SUPPORT OF
THIS IMPORTANT, BILL. THANK YOU.
ANY WITNESSES IN OPPOSITION.
OKAY, QUESTIONS FROM THE PANEL.
ASSEMBLYMEMBER'S WORK. YEAH THIS
DOES MAKE A LOT OF SENSE. SO
WE'RE TALKING ABOUT $500 A YEAR.
IN SAN FRANCISCO, THE TYPICAL
HOMEOWNER PAYS THE MORTGAGE OF
$5200 A MONTH. THEIR HIGH
INCOME. THEY'RE PRAYING,
PROBABLY 10% OR SO AND, UH,
STATE TAX. THAT'S $500 A MONTH
THAT THEY'RE GETTING BACK A
MONTH. WE ARE FAR TOO GENEROUS,
AND I NEVER TRIED TO TAKE THIS
ONE ON BEEN THINKING ABOUT IT
FOR THE EIGHT YEARS I'VE BEEN ON
HERE. WERE TOO GENEROUS TO
HOMEOWNERS AND TOO STINGY WITH
RENTERS. UM, THIS WOULD BE A
SMALL AMOUNT OF EQUITY. BUT YOU
KNOW, THERE ARE OTHER PEOPLE WHO
BUY MILLION DOLLAR HOMES ARE
PAYING 10,000 MONTH AND THEY'RE
GETTING $1000 BACK FROM THE
STATE AND A $2 MILLION HOME.
THEY'RE GETTING A COUPLE 1000
EVERY MONTH FROM THE STATE AND
THIS IS JUST RIDICULOUS. SO I
HOPE THAT YOU'RE AH, SENATOR
GLASER'S BELL, WHICH I IMAGINE
YOUR CO AUTHOR ON DOES IT IS IN
THE CURRENT BUDGET, AND I HOPE
IT STAYS THERE. AT LEAST OUR
ASSEMBLY AND SENATE BUDGET AND
MIND BUDGET. IT'S NOT IN THE
COMBINED FINALLY I WAS HOPING
WELL. SINCE YOU'VE MADE IT
DEPENDENT UPON OR AT LEAST YOU
AND YOUR CO AUTHOR OF MADE IT
DEPENDENT UPON BUDGET
APPROPRIATIONS. I THINK WE CAN
STILL PASS IT. AND I HOPE WE
WILL. ASSEMBLYMEMBER'S
PETRIE-NORRIS. HI. UM A COUPLE
OF QUESTIONS. SO THE FIRST YOU
NOTED IN YOUR PRESENTATION THAT
IT'S A REFUNDABLE TAX CREDIT.
BUT IN ORDER FOR IT TO BE
REFUNDABLE, WOULDN'T THE TAX
FILER HAVE TO ITEMIZE? AND LOW
INCOME CALIFORNIANS RARELY
ITEMIZED. SO I THINK IS THAT
CORRECT? I THINK WE CAN. HI
FROM, SAID I'M SHOSHANA FROM
SENATOR GLASER'S OFFICE. UM, SO
WE RECOGNIZE THE CONCERN THERE.
I BELIEVE IT HAS BEEN
ESTABLISHED THAT LOW INCOME UH
INDIVIDUALS RARELY KNOW TO
ITEMIZE THEIR TAX DEDUCTIONS AND
WERE COMMITTED TO WORK TO TRY TO
RESOLVE THAT ISSUE. MAKE IT A
LITTLE BIT EASIER. BUT THE POINT
OF THE REFUNDABLE TAX CREDIT IS
TO OPEN UP ELIGIBILITY TO THE
MOST LOW INCOME RENTERS THAT
RARELY HAVE ENOUGH TAX LIABILITY
TO QUALIFY, AND THEY ARE THE
ONES IN THE MOST NEED FOR 500 OR
$1000. IT COULD REALLY BRING
THEM A LOT OF RELIEF TO PAY FOR
THEIR GAS AND THEIR GROCERIES,
BABY FORMULA, ETCETERA, BUT
WE'RE COMMITTED TO RESOLVING
THAT ISSUE. THANK YOU FOR
BRINGING IT UP. RIGHT BECAUSE,
AS YOU SAID, THE FOLKS MY
CONCERN ABOUT THE BILL AS IT'S
CURRENTLY WRITTEN AS THE FOLKS
THAT YOU MOST WANT TO BENEFIT
FROM THIS POLICY, OR, FRANKLY,
THE LEASTLIKELY TO ACTUALLY
BENEFIT FOR FROM FROM IT IN
PRACTICE, SO I THINK THAT I
GUESS MY VIEW WOULD BE THAT'S I
MEAN, THAT'S REALLY, REALLY
IMPORTANT TO HAMMER OUT WITHIN
THIS COMMITTEE BEFORE IT MOVES
FORWARD. ABSOLUTELY THANK YOU
FOR LETTING US SO I THINK, MR F.
A COMMENT. WELL, I WOULD JUST
NOTE IT'S MY UNDERSTANDING THAT
THIS IS NOT A DEDUCTION. IT'S
ACTUALLY A CREDIT AND TO ADDRESS
THE CONCERN THAT IT WOULD NOT BE
AVAILABLE TO INDIVIDUALS WITH
LIMITED MEANS. I BELIEVE THE
AUTHOR CALLS ON IT TO BE
REFUNDABLE SO IT WOULD JOIN THE
EARNED INCOME TAX CREDIT AS A
REFUNDABLE CREDIT. SO EVEN IF
YOU HAVE NO TAX LIABILITY TO
OFFSET YOU WOULD GET THE BENEFIT
OF THE CREDIT. RIGHT BUT FOR
INDIVIDUALS WHO DON'T ITEMIZE.
HOW WOULD THEY CLAIM THAT CREDIT
THAT THEY'RE ELIGIBLE FOR A SHIN
REFERS TO DEDUCTIONS SO RIGHT?
YOU EITHER TAKE A STANDARD
DEDUCTION OR YOU ITEMIZE YOUR
DEDUCTIONS. IT DOESN'T APPLY TO
A CREDIT AT THE END. DEDUCTIONS
BASICALLY GET YOU TO ADJUSTED
GROSS INCOME. ONCE YOU HAVE YOUR
FINAL TAX LIABILITY, YOU CAN
APPLY CREDITS, AND IT'S A
REFUNDABLE CREDIT. EVEN IF THE
AMOUNT OF ZERO YOU WILL STILL
GET A CHECK. OKAY SO THEN FOR
END, SO FOR INDIVIDUALS WHO
DON'T I MEAN, I I'M CALLING IT
ITEMIZED. BUT DO THAT DETAILED
SO WE WOULD ESSENTIALLY WOULD
HAVE TO GO THROUGH THE SAME
EDUCATION PROCESS THAT WE DO
WITH THE EITC. WHERE PEOPLE
LEARN THAT THEY'RE ELIGIBLE FOR
THIS. THAT IS THERE ARE WE KNOW
WHAT THE I T YOU WOULD HAVE TO
FILE IN THE FIRST INSTANCE
MILLIONS AND MILLIONS OF DOLLARS
THAT ARE LEFT ON THE TABLE EVERY
YEAR, SO I THINK WE HAVE TO BE
COGNIZANT OF THE FACT THAT WE
WOULD FACE SIMILAR CHALLENGES IN
ACCESSING AND, UH DEALING
BENEFIT FOR THE FOLKS. WE'RE
TRYING TO HELP. SO I DO THINK WE
HAVE TO. BE THOUGHTFUL ABOUT
IMPLEMENTATION AS WELL. BUT
THANK YOU, FOR THE POINT OF
CLARIFICATION. APPRECIATE THAT.
CORRECT CORRECT. SO I JUST HAVE
ONE QUICK COMMENT. A BILL
SIMILAR THAT SENATOR GLAZER HAS
INTRODUCED HAD INTRODUCED BEFORE
, I THINK DIDN'T MAKE IT THROUGH
APPROPRIATIONS. UM SO WE ARE
GOING TO HAVE TO BE CAREFUL WITH
THE AMOUNT AND IT WOULD BE VERY
ADVANTAGEOUS TO ACTUALLY HAVE IT
IN THE BUDGET. BECAUSE WE KNOW
WHAT HAPPENS WITH MOST OF THESE
TAX CREDIT BILLS AND
APPROPRIATIONS. NOT ON YOUR
SIDE, OF COURSE, BUT AH! YEAH.
YOU ARE YOU YOU CERTAINLY ARE.
BUT BUT THIS. YOU KNOW, I
DEFINITELY AGREE WITH AGAIN.
WHAT ASSEMBLYMEMBER'S QUIRK SAID
. WE GIVE A LOT OF BENEFIT TO
HOMEOWNERS AND, UH, ORDERS OF
MAGNITUDE LESS TO RENTERS WHO WE
COULD ALL ARGUE. NEED IT MUCH
MORE SO SENATOR. WOULD YOU LIKE
TO CLOSE FOR THE CONVERSATION
AND THE HIGHLIGHT OF THE
IMPORTANT APPROPRIATE. I KNOW
SENATOR GLENN YEAH. ALL RIGHT.
THANK YOU VERY MUCH. SENATOR
BRADFORD. SENATOR BRADFORD WILL
BE SPEAKING ON FILE ITEM SEVEN
SP 12 93 WHENEVER YOU'RE READY.
THANK YOU, MADAM CHAIR AND I'M
HERE TO PRESENT 12 93, WHICH
WOULD PROVIDE LICENSED CASTLE
CANNABIS EQUITY OPERATORS WITH A
TAX CREDIT THAT WOULD APPLY TO
THEIR PERSONAL INCOME TAX AND
THEIR CORPORATE INCOME TAX. IN
2016, YOU KNOW, THE VOTERS OF
CALIFORNIA PASSED PROP 64. THE
CONTROLLED AND REGULATED AND TAX
, ADULT USE OF MARIJUANA ACT,
WHICH AUTHORIZES THE LICENSOR
SALE AND REGULATION OF CANNABIS
FOR BOTH COMMERCIAL ADULT USE
AND MEDICINAL USE. CALIFORNIA
HAS HAS CLEARED THE PATH FOR THE
CANNABIS INDUSTRY TO OPERATE
LEGALLY, MANY OF THE CANADA'S
BUSINESSES ARE STRUGGLING TO
SURVIVE, ESPECIALLY THOSE OWNED
BY PEOPLE OF COLOR. AH WHICH ARE
THE MAJORITY OF THE EQUITY
OPERATORS, EVEN THOUGH THEY'RE
NOT GETTING THE MAJORITY OF THE
EQUITY FUNDS THAT HAVE BEEN MADE
AVAILABLE THROUGH A MEASURE THAT
I PUT AUTHORED FOUR YEARS AGO,
SP 12 94. EQUITY OPERATORS
REPORT THAT THEY ARE IN A CRISIS
AND THEY'RE ON THE VERGE OF
COLLAPSE, IN PART DUE TO THE
OVER TAXATION OF THIS INDUSTRY
REPORT RELEASED IN 2021 BY THE
CALIFORNIA CANNABIS INDUSTRY
ASSOCIATION, NOTES THAT WHILE
THE BARRIERS TO MARKET ENTRY ARE
HIGH FOR ANY CANNABIS OPERATOR.
THE ODDS ARE AGAINST THE AVERAGE
EQUITY OPERATOR WHO MIGHT NOT
HAVE THE SAME RESOURCES.
INVESTORS ARE VENTURE
CAPITALISTS WHO WANT TO INVEST
IN THEIR BUSINESSES. AND.
ANOTHER ADVANTAGE IS SAID OTHER
OPERATORS HAVE IN THIS
MARKETPLACE. THE REPORT
RECOMMENDS THAT PROVIDING A TAX
RELIEF AND ADDITIONAL FUNDING TO
SUPPORT CANNABIS SOCIAL EQUITY
OPERATORS IS NEEDED. FEDERAL LAW
, THE TEXT, EQUITY AND FISCAL
RESPONSIBILITY ACT PROHIBITS
TAXPAYERS FROM DEDUCTING OR
CLAIMING CREDIT FOR ANY AMOUNTS
PAID OR INCURRED IN CARRYING ON
ANY TRADE OR BUSINESS, AND SUCH
A TRADE OR BUSINESS CONSISTS OF
TRAFFICKING IN A CONTROLLED
SUBSTANCE. WE ALL KNOW THAT
CANNABIS IS A SCHEDULE ONE. UH I
WON'T EVEN CALL IT DRUG BUT
SUBSTANCE. BUT IF WE KNEW THE
HISTORY, THE ONLY REASON THAT
EVER WAS PUT ON THE SCHEDULE ONE
WEST, INCARCERATE BLACK AND
BROWN PEOPLE 90 YEARS AGO. THAT
WAS THE ONLY REASON IT WAS NO
RISING CRIME OR ANYTHING OR
OVERUSE. IT WAS TOTALLY RACIST,
AND IT'S PRACTICE AND IT'S STILL
EXISTS HERE 90 YEARS LATER. AH
AH, AND EVEN IN A STATE WHERE
IT'S LEGAL YOU CANNOT DEDUCT
ORDINARY OR NECESSARY BUSINESS
EXPENSES FROM YOUR FEDERAL, UH,
TAXES ONE WAY TO AFFECT THE GOAL
OF FINANCIAL FINANCIALLY HELPING
EQUITY OPERATORS JUST DO THE
STATE TAX CREDIT FOR CANNABIS
BUSINESSES RELATED TEXPENSES.
THIS TAX CREDIT WOULD REDUCE THE
TAX LIABILITY FOR EQUITY
CANNABIS OPERATORS AND PROVIDE
SOME RELIEF THAT MAY HELP THEIR
BUSINESS SURVIVE. THIS BILL WILL
ESTABLISH THE TAX CREDIT THAT
WILL ALLOW LICENSE EQUITY
OPERATORS IN THE CANNABIS
INDUSTRY TO ACCOUNT FOR THE FACT
THAT THEY CANNOT WRITE OFF
BUSINESS RELATED EXPENSES AT THE
FEDERAL LEVEL. THE TAX CREDIT
WILL HELP EQUITY CANNABIS
OPERATORS THAT WERE
DISPROPORTIONATELY HARMED BY THE
WAR ON DRUGS OR THAT THAT ARE AT
A ECONOMIC DISADVANTAGE TO STAY
AND GROW THEIR BUSINESS. UH THIS
BILL 12 93 TAKES EFFECT ON
JANUARY. ONE OF 2023 APPLIES THE
TAX TO THE TAX YEAR 2022
INCLUSIVE. SB 12 93 INCLUDES A
SUNSET DATE OF DECEMBER 31ST
2027 HERE TO TESTIFY TODAY AS
JANIE TURNER. WHO IS THE FOUNDER
OF BEYOND EQUITY AND ALSO A
CURRENT CHAIR OF THE OAKLAND
CANNABIS REGULATORY COMMISSION.
KALEO FERGUSON CANNABIS EQUITY
POLICY COUNTY COUNCIL. SO THANK
YOU BOTH FOR BEING HERE. THANK
YOU. UM MY NAME IS JENNY TURNER.
I'M A DRUG WAR SURVIVOR.
CANNABIS MEDICAL PATIENT, FORMER
DISMISSED RE OPERATOR. CURRENTLY
CARE CHAIR, THE OAKLAND CANNABIS
REGULATORY COMMISSION EXECUTIVE
DIRECTOR OF BEYOND EQUITY AND
ALSO A FOUNDING MEMBER OF
CALIFORNIA CANNABIS EQUITY
ALLIANCE. C C A, WHICH IS TO
IMPRESS UPON THE GOVERNOR'S
OFFICE, THE BUREAU OF CANNABIS
CONTROL AND THE CAN'T AFFORD FOR
YOUR LEGISLATOR, THE URGENT NEED
TO ESTABLISH A STATE WIDE SOCIAL
EQUITY DEFINITION. THAT
ACCURATELY IDENTIFIES.
IDENTIFIES THOSE CANNABIS
OPERATORS WHO ARE CURRENTLY
DISPROPORTIONATELY HARMED BY THE
WORLD ON DRUGS AND ATTEMPT TO
PLAY LEVEL THE PLAYING FIELD AND
PROVIDE OPPORTUNITY FOR ECONOMIC
INVEST. AT THE END OF THE DAY.
THIS IS ABOUT EQUITY. INCLUSION
AND FAIRNESS. CURRENTLY
CALIFORNIA'S LEGAL CANNABIS
MARKET IS HEAVILY TAXED AND
OVERLY REGULATED THAT THE COST
OF ESTABLISHING BUSINESS AND
CONDUCTING ONGOING OPERATIONS IS
IMPOSSIBLE. ALI LARGE OPERATORS
WITH EXPENDABLE CAPITAL CAN
AFFORD TO OPERATE IN THE RED
LONG ENOUGH FOR MANY OF THEIR
COMPETITORS HAVE FAILED. THE
ADMINISTRATION'S CURRENT
DEFINITIONS ARE TOO BROAD TO GET
THE MONEY TO THE RIGHT PEOPLE.
WE HAVE SEEN THAT OVER 70% OF
THE EQUITY FEE WAIVERS ARE GOING
TO RURAL AREAS IN THE STATE. THE
VERY SAME WHITE RURAL COUNTIES
THAT ARE CURRENTLY BENEFITING
FROM THE CONSERVATION TAX CUTS.
WHY ARE BLACK AND BROWN CANNABIS
EQUITY RETAILERS BEING IGNORED?
FOR 2.5 YEARS, C. C A HAS ASKED
FOR EXCISE TAX RELIEF AND WE
RECEIVED BROKEN PROMISES, AND
WE'RE TIRED OF BEING GAS
LIGHTED. WE NEED A STATEWIDE
LEGISLATIVE DEFINITION AND SEE
SEE A SUPPORTS BRADFORD'S SB 12
93 AND BELIEVES IT'S A NECESSARY
FIRST STEP. HOWEVER WE WOULD
ALSO LIKE TO FURTHER THE
DISCUSSION ON REFINING THE
DEFINITION. UNTIL EQUITY AND
SMALL, UH BLACK OWNED AND POC
OPERATED CANNABIS BUSINESSES ARE
PROVIDED STATE TAX RELIEF TO
REINVEST BACK INTO OUR
COMMUNITIES AND PROVIDE
INCREASED LIVABLE. PAYING WAYS
JOBS IN OUR COMMUNITIES. WE WILL
CONTINUE TO BE EXCLUDED FROM
THIS INDUSTRY. THE HIGH COST
MARKET ENTRY, EXTENSIVE
REGULATION AND HIGH TAXES IS
HELPING TO PERPETUATE THE
ILLICIT MARKET. TEXT RELIEF MUST
THEREFORE BE A PART OF ANY
EFFECTIVE EFFORT TO CAPTURE A
BIGGER SHARE OF THE COMMERCIAL
TRAFFIC IN CANNABIS WITHIN THE
LEGAL REGULATED MARKET. THANK
YOU. GOOD MORNING, MADAM CHAIR
COMMITTEE. MY NAME IS CAROL
FERGUSON, DEPUTY DIRECTOR FOR
THE CANNABIS EQUITY POLICY
COUNCIL. SEE IPCS COMPRISE OF
CANNABIS EQUITY ENTREPRENEURS
AND SOCIAL JUSTICE, NONPROFIT
ORGANIZATIONS THAT HAVE UNIFIED
TO COLLECT COLLECTIVELY
ADDRESSED THE GAP IN FUNDING.
EDUCATIONAL RESOURCES AND
LEGISLATIVE ADVOCACY FOR
CANNABIS EQUITY POLICIES. AS
TRAINEE MENTIONED THAT THE
INABILITY OF SOCIAL EQUITY
ENTREPRENEURS TO COMPETE AT A
SCALE LARGER OPERATIONS IS
DIRECTLY CORRELATED TO THE SOCIO
ECONOMIC FACTORS EMANATING FROM
EMANATING FROM THE
CRIMINALIZATION OF CANNABIS
POLICY. COMMUNITY, WHICH WERE
TARGETED BY THE WAR ON DRUGS.
ALSO EQUITY BUSINESSES SUFFER
FROM MUCH DEEPER CHALLENGES IN
GENERAL LICENSES BECAUSE OF THE
STRUCTURAL IMPEDIMENTS LIKE
ACCESS TO CAPITAL AND THE
PROPORTION OF CRIMINALIZATION
CARBON. IT'S THE COMBINATION OF
PREVIOUS CANNABIS
CRIMINALIZATION POLICIES PAIRED
WITH CONTEMPORARY STRUCTURAL
IMPEDIMENTS HAVE RESULTED IN
SOCIAL EQUITY BUSINESSES
COMPRISING LESS THAN 5% OF THIS
INDUSTRY. THERE ARE SEVERAL
FACTORS CONTRIBUTING TO CURRENT
STRUGGLES FACING CANNABIS
BUSINESSES IN CALIFORNIA MARKET
FISCAL PRESSURES DUE TO HIGH DUE
TO THE HIGH COMBINED LOCAL,
LOCAL AND STATE TAXES AND
LICENSING FEES. THE FLOURISHING
ILLICIT MARKET AND THE LACK OF
ACCESS TO CAPITAL OR JUST A FEW
OF THE ECONOMIC PRESSURES FACED
BY SOCIAL EQUITY ENTREPRENEURS.
EQUITY OPERATORS AND BIG
BUSINESSES HAVE STRUGGLED TO
KEEP PACE WITH WELL FUNDED LARGE
COMPANIES SINCE THE BEGINNING OF
OUR REGULATED MARKET IN 2018.
HIGH INITIAL START UP COSTS,
LACK OF TECHNICAL ASSISTANCE AND
CHALLENGING REGULATIONS ARE
SIGNIFICANT BARRIERS TO ENTRY
INTO THIS CANNABIS MARKET. THE
CHALLENGES ARE EVEN GREATER FOR
THOSE ENTREPRENEURS WHO COME
FROM DRUG WAR IMPACTED
COMMUNITIES. ADDITIONALLY
CANNABIS EQUITY ENTREPRENEURS
FACE PROBLEMS RELATED TO
ECONOMIES OF SCALE THAT SUPPRESS
THEIR ABILITY TO REACH OPTIMAL
GROWTH RATES. THE HARD TAX RATE
IN THE INDUSTRY PAIRED WITH THE
INABILITY TO ACCESS CAPITAL
FURTHER HINDERS THE ABILITY OF
EQUITY OPERATOR TO COMPETE WITH
LARGER OPERATIONS. OPERATING
CAPITAL CAPITAL HAS ALSO DECIDED
AS ONE OF THE PRIMARY NEEDS FOR
SOCIAL EQUITY ENTREPRENEURS
THROUGHOUT THE SUPPLY CHAIN. SB
12 93 IS CRITICAL BECAUSE IT
PROVIDES EQUITY OPERATORS SOME
OF THE FINANCIAL ELIEF NEEDED
TO ALLOW OUR BUSINESSES TO
THRIVE. THIS BILL HELPS TO LEVEL
THE PLAYING FIELD BETWEEN EQUITY
AND NON EQUITY BUSINESSES. THE
FUNDING FROM THE TAX CREDIT
HELPS US RECOUP SOME OF THE
COSTS. THAT WE NEED TO USE AND
OTHER AREAS JUST TO MAINTAIN OUR
STATUS. SOCIAL EQUITY
ENTREPRENEURS. EXTENDED TO HIS
HELD BECAUSE OF THE INJURIES
EXPERIENCED BY US OUR FAMILIES
AND THE REST OF OUR COMMUNITIES
THROUGHOUT THE WAR ON DRUGS.
THERE'S BUSINESS TAX CREDITS IS
SPECIFIC TO EQUITY OPERATORS
WILL PROVIDE A MECHANISM OF
FINANCIAL SUPPORT, WHICH
CANNABIS EQUITY ENTREPRENEURS
NEED IN ORDER TO BECOME MORE
COMPETITIVE WITH LARGER CANNABIS
CORPORATIONS WITH SIGNIFICANT
INVESTMENTS. IN ORDER TO TRULY
CREATE AN EQUITABLE CANNABIS
MARKET IN CALIFORNIA
POLICYMAKERS MUST ENACT THESE
TYPE OF TAX POLICIES WHICH PLAYS
CANNABIS, CANNABIS EQUITY
ENTREPRENEURS ON A LEVEL PLAYING
FIELD WITH OTHER CANNABIS EQUITY
OPERATORS. WE THINK THE
LEGISLATOR AND THEIR STAFF IS
DEDICATED ENTIRELY SUPPORT ON
THIS ON THIS ISSUE. I
RESPECTIVELY ASK FOR YOUR VOTE
ON 12 93 ODAY. THANK YOU SO
MUCH, SENATOR RADFORD AND
COMMITTEE TO FOR THE OPPORTUNITY
TO PRESENT TODAY. THANK YOU
OTHER SPEAKERS IN SUPPORT. I SEE
A LOT OF NOTES. THERE WERE IF WE
CAN YOU JUST HAD FOUR MINUTES.
SO, UM PLEASE. I WILL BE QUICK
ALRIGHT. AFTERNOON MADAM CHAIR
AND COMMITTEE MEMBERS. MY NAME
IS MINI GALLOWAY. I'M A SOCIAL
EQUITY OPERATOR AND CEO OF
COMMEDIA AND MANUFACTURING
DISTRIBUTION COMPANY IN
SACRAMENTO AND REPRESENTATIVE
FOR THE CALIFORNIA CANNABIS
INDUSTRY ASSOCIATION. I'M IN
STRONG SUPPORT OF SB 12 93 CC. I
WAS PROUD TO SUPPORT THAT
CANNABIS. CALIFORNIA CANNABIS
EQUITY ACT AUTHORED BY SENATOR
BRADFORD AND 2000 AND 18. WITH
THE ALSO WITH THE PASSAGE OF
PROPOSITION 64 VOTERS IN
CALIFORNIA, MADE A COMMITMENT TO
END DECADES OF FAILED
PROHIBITIONIST POLICY AND DO
RIGHT BY COMMUNITIES MOST
AFFECTED BY THE WAR ON DRUGS.
THIS WAR HAS RIPPED FAMILIES
APART LIVES FURTHER PERPETUATED
BY A SYSTEMATIC PATH OF BEAR
BARRIERS AND OBSTACLES THAT ARE
ACKNOWLEDGED, BUT NOT YET GONE.
I HAVE HELPED PROVIDE MY
COMMUNITY WITH ACCESS TO
CANNABIS FOR OVER 15 YEARS
BECAUSE I BELIEVE IN IT. BECAUSE
I HAVE HEARD STORY AFTER STORY
ABOUT HOW CANNABIS HAS CHANGED
PEOPLE'S LIVES. MY THIS IS MY
MISSION IN THIS WORLD. IT IS ALL
I'VE EVER KNOWN AND NOW MY
EXPERTISE, KNOWLEDGE AND
RESOURCES ARE BEING HINDERED BY
THE BARRIERS PLACED IN FRONT OF
ME. LEGALIZATION IS SUPPOSED TO
BE A WAY FOR PEOPLE LIKE ME TO
REVERSE THE DETRIMENT IMPOSED
UPON ME BY THE WAR ON DRUGS.
LICENSING HAS BEEN A HARD ROAD
STARTING MY COMPANY IN 2019 I'VE
BEEN UNDER FUNDED AND OVER
WORKED FOR THE PAST THREE YEARS.
THE TAXES AND COMPLIANCE
REQUIREMENTS. HAVE ME WORKING 12
HOUR DAYS TRYING TO KEEP UP
EVERY DAY WATCH BIG CORPORATIONS
TAKE OVER THE CANNABIS SPACE,
CREATING BUSINESS MODELS MEANT
TO UNDERCUT AND WIPE OUT SMALL
BUSINESS OWNERS LIKE MYSELF.
THESE COMPANIES ARE ABLE TO
OPERATE IN THE RED FOR MANY
YEARS. HOWEVER I JUST HAVE TO
WORK HARDER TAKING ON THE BURDEN
MYSELF. HOW MUCH HARDER DO I
HAVE TO WORK? AMONG THE
RECOMMENDATIONS PROVIDED IN THE
CIA'S DIVERSITIES, INCLUSION AND
SOCIAL EQUITY COMMUNITY EQUITY
ACCOUNTABILITY REPORT. THE PEN
POINTS OF LOCAL LOCAL EQUITY
PROGRAMS AND OFFERING
RECOMMENDATIONS FOR THEM. I'M
NOT IN THE RECOMMENDATIONS
PROVIDED WAS TO EXPAND FINANCIAL
RELIEF AND TAX CREDIT OPTIONS
FOR CALIFORNIA'S EQUITY
OPERATORS. MUCH LIKE THE BILL
BEFORE YOU TODAY, FINANCIAL
BURDENS ARE OFTEN THE EARLIEST
MOST SIGNIFICANT BARRIER TO
ENTRY, FIRST FIRING EQUITY
ENTREPRENEURS, MANY OF WHOM HAVE
NOT HAD ACCESS TO LARGE SUMS OF
CAPITAL FOR INVESTORS. AS SUCH
ADDITIONAL RESOURCES TO OPPOSITE
STARTUP COSTS FOR EQUITY
APPLICANTS, SUCH AS EXPANDING
THE QUALIFIED EXPENSES THAT CAN
BE OFFSET BY A TAX CREDIT CAN
OFFER EQUITY OPERATORS MUCH
NEEDED RELIEF. FOR THESE
REASONS, I AM PLEASED TO SUPPORT
SP 12 93 ON BEHALF OF THE
CALIFORNIA CANNABIS INDUSTRY
ASSOCIATION, AND RESPECTFULLY
ASK FOR YOUR VOTE. THANK YOU.
THANK YOU. AND THEN FOR ANYBODY
ELSE IN SUPPORT, PLEASE, JUST
YOUR NAME POSITION AND
ORGANIZATION. GOOD AFTERNOON,
MADAM CHAIR COMMITTEE MEMBERS,
JONATHAN CLAY HERE ON BEHALF OF
THE COUNTY OF SAN DIEGO, AND
SUPPORT OF SB 12 93. AND THEN
IT'S AND THAT WAS SUPER. ANOTHER
WOMAN IN SUPPORT OF A SPEED TOLD
93. MADAM CHAIR MEMBERS, RAND
MARTIN ON BEHALF OF THE PARENT
COMPANY BETTER KNOWN AROUND HERE
AS CAL EVA. WE ALSO HAVE A
DISCRETE PROGRAM TO INCUBATE NEW
EQUITY PROGRAMS. AND WE'RE VERY
STRONGLY IN SUPPORT OF THIS
BILL. THANK YOU. ANYBODY IN
OPPOSITION. OKAY, COMMENTS FROM
THE COMMITTEE. COMMENTS FROM THE
COMMITTEE. ALL RIGHT. WELL, UH
UM. SENATOR WOULD YOU LIKE TO
CLOSE? YES UH, THANK YOU FOR
THIS OPPORTUNITY, AND I THINK,
UH, WE REALLY EXAMINE WHERE WE
ARE WITH SOCIAL EQUITY. WE WOULD
HAVE TO SAY IT'S A FAILURE. I
AUTHORED 12, 94 AND IF YOU WERE
TO ASK ME RIGHT NOW, WHO IS
BENEFITING? THAT WAS I WOULDN'T
HAVE WRITTEN A BILL AND I REGRET
WRITING A BILL. IT'S A BILL THAT
NOW HAS BEEN MODELED AT BY ABOUT
20 OTHER STATES AND ACROSS THE
NATION. I WAS AT A CONFERENCE IN
DECEMBER AND ATLANTA NATIONAL
BLACK CAUCUS OF STATE
LEGISLATORS. THIS WAS THE NUMBER
ONE DISCUSSED ISSUE OF LACK OF
REAL EQUITY PROGRAMS, AND THEY
USE CALIFORNIA AS THE MODEL BUT
THE DEFINITION IN WHICH I WANTED
FOR SOCIAL EQUITY IS NOT BEING
ADHERED TO. TODAY. IT WASN'T FOR
THE EMERALD TRIANGLE THAT HAS
BENEFITED FOR 40 YEARS. WHETHER
LEGAL OR ILLEGAL GROWTH OF
CANNABIS IT WAS FOR THOSE FOLKS
WHO WERE IMPACTED AND WE ALL
SHOULD BE CONCERNED THAT
INDUSTRY. THAT'S FIVE YEARS IN
EXISTENCE. IT'S 85% CONTROLLED
NATIONWIDE BY WHITE MEN. AND
THAT SHOULD BE OF GREAT CONCERN
TO ALL OF US IF WE WANT THIS TO
SURVIVE, AND WE TALK ABOUT THE
LEGAL MARKET WILL THE EXORBITANT
TAXES IS WHAT'S LEADING TO THE
LEGAL MARKET? INDIVIDUAL
TESTIFIED OR I WAS AT A
CONFERENCE A COUPLE WEEKS AGO,
AND SHE SAYS, I'M HERE BECAUSE I
STILL BUY FROM THE GUY DOWN THE
STREET BECAUSE I CAN'T AFFORD TO
WALK INTO THE DISPENSARY WHERE
I'M GOING TO PAY ALMOST 40% MORE
FOR SOMETHING I'VE BEEN GETTING
FOR THE LAST 20 YEARS, SO IF WE
WANT TO REALLY COMBAT PHIL LEGAL
MARKET. WE MUST FIRST START BY
REDUCING THE TAXES WHERE IT
MAKES IT, UH, AFFORDABLE FOLKS
TO WALK INTO THE ESTABLISHED
BUSINESS AND HELP. THESE ARE
EQUITY OPERATORS AS WELL AS ALL
OPERATORS SURVIVE, SO I
RESPECTFULLY ASK FOR THAT. I
VOTE AT THE APPROPRIATE TIME.
ALL RIGHT. THANK YOU VERY MUCH%
FOR YOUR PRESENTATION. SURE. FOR
ALL RIGHT. WE ARE GOING TO DO
ADD ON TO, UH, ITEM NUMBER TWO.
SB 13 12. THE BILL IS PASSED AND
IT'S TO PASS AS AMENDED TO
APPROPRIATIONS GRAY. GREAT, I
GRAYSON. GRACE AND I GRIEVOUS
SUHARTO, OKAY?
IS HE COMING BACK? ALL RIGHT.
YOU COME. ONE WAY OR THE OTHER
ONE. YES. WE ALL ARE.
WAITING FOR YOU, SENATOR WIENER.
ALRIGHT UH, WE HAVE ITEM NUMBER
ONE SB EIGHT. 34 GOOD AFTERNOON.
THANK YOU, MADAM CHAIR. THANK
YOU FOR YOUR BUSY ONE. I'M SURE
NATURAL RESOURCES SO. TRYING TO
THROW THEM UNDER THE BUS OR
ANYTHING ALONG HERE. THANK YOU,
MADAM. CHAIR COLLEAGUES, UM SB
UM 8 34 CLARIFIED AND CODIFIED
FRANCHISE TAX BOARD'S AUTHORITY
TO REVOKE THE CALIFORNIA TAX
EXEMPT STATUS. OF NON PROFITS IF
THE ATTORNEY GENERAL DETERMINES
THAT THE NONPROFIT HAS ENGAGED
IN OR INCITED VARIOUS CRIMES,
INCLUDING TREASON AND SELECTION
AND SEDITIOUS CONSPIRACY. MSP 34
FILLS AN IMPORTANT GAP. UM WHILE
THE FRANCHISE TAX BOARD IS
CURRENTLY DIRECTED BY STATUTE TO
SUSPEND THE TAX EXEMPT STATUS OF
NONPROFITS SUPPORTING
INTERNATIONAL TERRORISM. THERE'S
NO EXPLICIT AUTHORITY CONCERNING
NONPROFITS THAT ATTACK OR THE
DEMOCRACY AND LITERALLY TRY TO
OVERTHROW OUR GOVERNMENT. WE
KNOW FROM JANUARY 6TH OR HEARING
MORE ABOUT IT AND RECENT DAYS,
BUT THERE WAS A VERY ORGANIZED
EFFORT TO PREVENT THE PEACEFUL
TRANSITION OF POWER AND TO
OVERTHROW OUR GOVERNMENT. AND
TRAGICALLY, THERE WERE
NONPROFITS INVOLVED. UM AND WE
WANT TO MAKE SURE THAT GOING
FORWARD THE DEA'S NONPROFITS DO
NOT GET TAX SUBSIDIES FROM
CALIFORNIA TAXPAYERS. WE WORKED
VERY HARD TO MAKE THIS A VERY
SOLID, FOCUSED, NARROW BILL THAT
IS CONSISTENT WITH THE FRST
AMENDMENT WE WORKED WITH. UM UH,
NATIONALLY RENOWNED
CONSTITUTIONAL SCHOLARS. TO MAKE
SURE THAT WE WERE CROSSING OUR T
S AND DOTTING OUR I'S AND I
THINK THAT WE HAVE DONE THAT. SO
I RESPECTFULLY ASK FOR AN I VOTE
WITH ME TODAY TO TESTIFY OR BETH
HOLTZMAN WITH THE ANTI
DEFAMATION LEAGUE. AND DENISA
HOTEL IS FROM CALIFORNIA.
INDIVISIBLE STATE. STRONG
ALRIGHT WITH TWO WITNESSES. YOU
EACH HAVE TWO MINUTES. THANK
YOU. THANK YOU TO SENATOR WEINER
FOR THE OPPORTUNITY TO TESTIFY
AND THANK YOU COMMITTEE FOR
HEARING FROM ME TODAY. MY NAME
IS DENNIS A TILLIS. I'M HERE AS
A MEMBER OF INDIVISIBLE
CALIFORNIA STATE STRONG. WE ARE
A COALITION OF OVER 80
INDEPENDENT LOCAL INDIVISIBLE
GROUPS. WITH OVER 80,000
ACTIVISTS ACROSS THE STATE OF
CALIFORNIA. INDIVISIBLE GROUPS
FORMED ACROSS THE COUNTRY AFTER
THE 2016 ELECTION TO OPPOSE THE
BIGOTED AND TYRANNICAL TRUMP
ADMINISTRATION, WITH ITS
EXISTENTIALLY DANGEROUS APPROACH
TO ORDERING SOCIETY. WE HAVE
CONTINUED TO ORGANIZE AND PUT
PRESSURE ON OUR GOVERNMENT FOR
SOCIETALLY BENEFICIAL AND PRO
DEMOCRACY POLICIES. ACTS IN
SUPPORT OF AN INSURRECTION ARE
ALREADY ILLEGAL. BUT ALSO IT IS,
OF COURSE, THE OPPOSITE OF
CHARITABLE DEFOE, MATT AND
ATTEMPTED COUP BASED UPON THE
BIG LIE ABOUT THE KNOWN VALID
RESULTS OF THE 2020 ELECTION.
ALL THAT SP 834 DOES IS
REINFORCED TO JUSTIFY TAKING
AWAY OF A TAX EXEMPTION. FOR
GOVERNMENT TO DECLINE TO APPLY
CONSEQUNCES WOULD BE A MOCKERY
OF THE OATH OF OFFICE AND OF THE
LAW IN GENERAL. LAWS ARE NOT
SELF ENFORCING. IT TAKES ACTUAL
LIVING PEOPLE TO UPHOLD THEM IN
THE CASE AT HAND WITH SP 834
THAT'S THE CALIFORNIA FRANCHISE
TAX BOARD, ATTORNEY GENERAL
GOVERNOR SENATE AND THE ASSEMBLY
HERE TODAY. TO NOT RESPOND TO
THE JANUARY 6TH 2021
INSURRECTION OUT OF POLITICAL
FEAR OF ANGER FROM THOSE WHO
SUPPORTED THE INSURRECTION WOULD
MEAN APPEASEMENT WITH
POTENTIALLY DIRE REPERCUSSIONS
THAT HISTORY AND PLACE IT IS
THEREFORE, THAT INDIVISIBLE
CALIFORNIA STATE STRONG STRONGLY
ASK FOR YOUR VOTE ON SB 834.
THANK YOU. THANK YOU. CHAIR,
IRWIN. GOOD AFTERNOON. MY NAME
IS BETH HOLTZMAN. AND I'M A DL
CIVIL RIGHTS COUNCIL. I'D LIKE
TO THANK SENATOR WEINER AND THE
COMMITTEE FOR INVITING US TO
TESTIFY AND SUPPORT OF THIS
BILL. MEDIA HAS PARTICULAR
EXPERTISE IN TRACKING AND
EXPOSING EXTREMIST THREATS
ACROSS THE IDEOLOGICAL SPECTRUM.
IN THE WAKE OF THE JANUARY 6TH
ATTACK ON THE U. S CAPITOL AND
THE RISING TIDE OF HATE AND
EXTREMISM ACROSS THE COUNTRY. WE
HAVE BECOME INCREASINGLY
CONCERNED ABOUT THE WAYS IN
WHICH EXTREMIST AND HATEFUL
GROUPS OPERATING AS CHARITABLE
NONPROFITS. MAYBE ABUSING THEIR
TAX EXEMPT STATUS TO FURTHER
THEIR VIOLENT OR HATEFUL
OBJECTIVES. AFTER A CURSORY
INVESTIGATION, WE UNCOVERED
EVIDENCE THAT A RANGE OF GROUPS
MAYBE MAKING MISREPRESENTATIONS
AND THEIR TAX FILINGS IN ORDER
TO SECURE TAX EXEMPT STATUS IN
THE FIRST PLACE. ENGAGING IN
SELF DEALING BY PAYING THEIR
LEADERS EXCESSIVE SALARIES AND
ARE DIVERTING FUNDS TO ENRICH
FRIENDS AND FAMILY MEMBERS AT
THE EXPENSE OF THE TAX EXEMPT
ENTITY ITSELF. IN ADDITION,
HATEFUL GROUPS WITH TAX EXEMPT
STATUS MAY BE USING THAT STATUS
TO RAISE MONEY FOR VIOLENT AND
ILLEGAL PURPOSES. THIS STATUS
ALLOWS GROUPS RIGHT TO RAISE
MONEY WHILE FINANCE OR FINANCING
WHILE AVOIDING STATE AND FEDERAL
INCOME AND UNEMPLOYMENT TAXES.
ADDITIONALLY CONTRIBUTIONS TO 50
C THREE ORGANIZATIONS ARE ALWAYS
TAX DEDUCTIBLE. SOME DONORS MAY
ALSO VIEW TAX EXEMPT STATUS AS
GOVERNMENT ENDORSEMENT, WHICH
GIVES BIBLE SEAT THREES
INCREASED CREDIBILITY. FOR ALL
OF THESE REASONS, IT IS
CRITICALLY IMPORTANT THAT WE DO
MORE TO PREVENT EXTREMIST GROUPS
FROM ABUSING THEIR TAX EXEMPT
STATUS. 80 L APPLAUD SENATOR
WIENER FOR GIVING THIS ISSUE
PRIORITY ATTENTION THROUGH THE
INTRODUCTION OF SB 8 34. THIS
BILL SENDS A CLEAR MESSAGE THAT
ORGANIZATIONS THAT ENGAGE IN
SERIOUS CRIMES AGAINST OUR
DEMOCRACY SHOULD NOT BE
PERMITTED TO OPERATE IN
CALIFORNIA FOR CHARITABLE
PURPOSES MORE MUST AND CAN BE
DONE TO ENSURE THAT EXTREMIST
GROUPS DO NOT ABUSE TAX EXEMPT
STATUS IN CALIFORNIA OR ANYWHERE
ELSE. SB 8 34 IS AN IMPORTANT
STEP IN THE RIGHT DIRECTION. FOR
THESE REASONS. WE URGE YOU TO
SUPPORT SB 8 34. THANK YOU.
THANK YOU. DO WE HAVE ANY OTHER
WITNESSES IN SUPPORT? WITNESSES
AND OPPOSITION. QUESTIONS FROM
THE PANEL. ALRIGHT WOULD YOU
LIKE TO CLOSE MY VOTE, SO THE
BILL WAS MOVED BY
ASSEMBLYMEMBER'S QUIRK SECONDED
BY ASSEMBLYMEMBER'S
PETRIE-NORRIS MOTIONS DO PASS TO
ASSEMBLY PUBLIC SAFETY. THIS
ISLAND. PLEASE CALL THE ROLL.
THE MOTION IS DUE PASS TO PUBLIC
SAFETY IRWIN IRWIN, I WIN GRAY
AGREE. I GRAYSON. MARINE MAZE,
MULLEN. PETRIE-NORRIS
PETRIE-NORRIS IKE WORK, I
GRIEVOUS SEYARTO. SO YOU NEED
TWO MORE VOTES. UM. AND YOU HAVE
ONE MORE BILL TO PRESENT. SO
LET'S HOPE WE CAN ROUND UP THOSE
LAST TWO VOTES BEFORE WE
ADJOURNED THE MEETING. PERFECT.
AND SO WE ARE NOW ON ITEM SIX SB
10 41, AND THIS IS A SENATOR
ATKINS BILL AND SENATOR WEINER
WILL BE PRESENTED. THANK YOU,
MADAM CHAIR PRESENTING SB 10 41
ON BEHALF OF PRO TEM ATKINS OF
THE BILL INDEFINITELY EXTENDS
THE EXISTING SALES TAX EXEMPTION
PROVIDED TO THE NAVY MARINE
CORPS RELIEF SOCIETY, A
NONPROFIT VOLUNTEER SERVICE
ORGANIZATION THAT PROVIDES
MILLIONS OF DOLLARS AND SUPPORT
EACH YEAR. TO ACTIVE DUTY AND
RETIRED MEMBERS OF THE NAVY AND
MARINE CORPS, THEIR FAMILIES AND
SURVIVORS. THE RELIEF SOCIETY
FUNDS IT SERVICE MISSION, IN
PART BY OPERATING THRIFT STORES
ON NAVY AND MARINE CORPS
INSTALLATIONS ACROSS THE US
ALLUDING EIGHT LOCATIONS IN
CALIFORNIA SINCE 2014 THE RELIEF
SOCIETY HAS PROVIDED ON AVERAGE
11 MILLION EACH YEAR TO OVER
14,000, CALIFORNIA BASED SERVICE
MEMBERS, RETIREES AND THEIR
FAMILIES. THE TAX EXEMPTION.
THIS BILL HAS BEEN IN EFFECT
SINCE 2000 AND NINE HAS BEEN
AUTHORIZED TWICE BEFORE BY THE
LEGISLATURE ON A BIPARTISAN
BASIS. THE CURRENT EXEMPTION
EXPIRES JANUARY 1ST OF 2024.
THIS BILL WOULD SIMPLY STRIKE
THE SUNSET DATE TO ENSURE THAT
IT CAN MAKE THAT THE SOCIETY CAN
MAINTAIN THE SAME LEVEL OF
SUPPORT TO OUR SERVICE MEMBERS
AND FAMILIES IN NEED FOR MANY
YEARS. TO COME. I RESPECTFULLY
ASK FOR AN I VOTE. RIGHT
WITNESSES AND SUPPORT. GOOD
AFTERNOON, MADAM CHAIR AND
MEMBERS OF THE COMMITTEE. I'M
BARRY WHITE, LIKE THE SINGER. 20
YEAR NAVY VETERAN WHO SERVED AS
DIRECTOR OF THE NAVY MARINE
CORPS LACES HEIDI SAN DIEGO
OFFICE FOR 12 YEARS. UM. TO
FOLLOW UP WITH A PREVIOUS
REMARKS ONE OF THE NEIGHBORING
CURLY SOCIETY PRIMARY SOURCE OF
REVENUE. THE FUND, OUR SERVICE
MISSION COMES FROM A SERIES OF
VOLUNTEER OPERATED THROUGHOUT
SHOPS. LOCAL CATERER AND NAVY
AND RECORD BASIS. THIS INCLUDES
EIGHT SITES IN CALIFORNIA AND
BARSTOW. OCEANSIDE RIDGECREST
MORE MIRAMAR, CORONADO, SAN, YOU
AND VENTURA. AND THE CHAIRS
DISTRICT. CALIFORNIA IS THE ONLY
STATE IN THE U. S THAT HAS
ATTEMPTED TO COLLECT A STATE TAX
AND THE PROCEEDS OF THESE THRIFT
STORES LOCATED ON FEDERAL
PROPERTY ESTIMATES OF THE TOTAL
TAX REVENUE THAT WOULD BE
COLLECTED. BY THE STEADY
CALIFORNIA'S RANGED FROM 15 TO
$21,000 A YEAR. VERY SMALL
AMOUNT RELATIVE TO THE $11
MILLION PLUS HEAD THAT NAVY
MARINE CORRELATES SOCIETY
PROVIDES ANNUALLY TO END STATE
SAILORS, MARINES AND THEIR
FAMILIES. THEIR CURRENT TENURE
RELIEF FROM STATE TAX SALES TAX
GIVEN TO AN ANSWER ROSE BY THE
LARGEST LEGISLATURE IS SET TO
EXPIRE IN JANUARY OF 24. THE
PERMANENT RELIEF SOUGHT BY SB 10
. 41 WOULD HELP ENSURE THAT I'M
STRESS CAN MAINTAIN ITS LEVEL OF
SERVICE AND PERPETUITY TO ACTIVE
DUTY AND RETIRED NAVAL SERVICE
AFFILIATED RESIDENTS OF
CALIFORNIA WHO RELY ON OUR
SERVICES ACROSS THE STATE. WE
APPRECIATE THE SUPPORT FOR
OPERATIONS THAT HISTORICALLY
BEEN GIVEN BY THIS COMMITTEE AND
BELIEVE THAT WE HAVE EFFECTIVELY
MADE THE CASE FOR THIS PERMANENT
RELIEF OVER THE PAST 15 YEARS,
TWO SUCCESSIVE RELIEF BILLS AND
MILLIONS OF DOLLARS A DEDICATED
INVESTMENT AND OUR CALIFORNIA
BASED AID RECIPIENTS WERE DEEPLY
GRATEFUL TO SENATOR ATKINS FOR
CONTINUED SUPPORT FOR OUR
MISSION AND RESPECTFULLY ASK,
YOU TELL, I'LL VOTE ON AND
SUPPORT SP 10 41 TO EMPOWER NM
SERIOUS THEY CAN CONTINUE OUR
MISSION OF SERVING THOSE WHO
SERVE OUR COUNTRY. THANK YOU.
THANK YOU VERY MUCH ANY OTHER
WITNESSES IN SUPPORT? GOOD
AFTERNOON, MADAM CHAIR, DR
QUIRKE, GARY SMITH WITH NEIGHBOR
REGION SOUTHWEST IN SUPPORT. NED
MCKINLEY WITH MARINE CORPS
INSTALLATIONS WEST IN SUPPORT.
AND THE WITNESSES AND
OPPOSITION. COMMENTS FROM MR
CORK. MM. SO ORDINARILY. WE
DON'T TAKE BILLS THAT DON'T HAVE
SUNSETS. BUT THE CHAIR HAS A
SOFT SPOT FOR VETERANS. AND. I
THINK IF SENATOR AND ATKINS WILL
PERSIST. I THINK THERE'S A FAIR
CHANCE THAT THE CHAIR WILL FIND
A WAY. QUÊ THANK YOU. DR QUIRKE.
ALRIGHT THANK YOU. UM, SENATOR
WINTER. DO YOU HAVE ANY CLOSING
REMARKS? WE SPOKE LAST FOR MY
VOTE. ALL RIGHT. THANK YOU VERY
MUCH FOR YOUR PRESENTATION.
THANK YOU. RIGHT? AND WE ARE
WAITING FOR TWO MORE MEMBERS. AH
JUST RUBY BACK IF THEY WOULD
LIKE TO. YES WE NEED TWO MORE
MEMBERS TO MAKE SURE THAT MR
WEINER'S BUILT MR WEINER'S BILL.
GETS OUT. SO LET'S SEE. WE'RE
LOOKING. FOR ASSEMBLYMEMBER'S
GRAYSON ASSEMBLYMEMBER'S BEING
MIGHT BE GONE. ASSEMBLYMEMBER'S
MAZE ASSEMBLYMEMBER'S MALLON
MISERY VOUS SEYARTO. YES, BUT
WE'RE, UM. SO WE WILL WAIT FOR
10 MINUTES. BUT WHAT ABOUT
RUBIO'S BILL? SORRY WE HAVE
RUBIO'S BUILDING HERE. IT WAS
PULLED. IT WAS PULLED. THAT'S
RIGHT. YOU SAID THAT AT THE
BEGINNING. I'LL KEEP YOU
COMPANY. SO.
WE'RE WAITING. WELL WE'LL WAIT
FOR MR MULLEN IS AND HOPEFULLY,
MR GRACE IS ON HIS WAY.
OTHERWISE, WE MIGHT HAVE TO UH,
YOU MIGHT HAVE TO ASK FOR
RECONSIDERATION. SO HOPEFULLY
WE'RE GETTING THESE. NO IT'S
THAT WAS TESTIMONY. ONLY
PROTESTERS. BILL WAS TESTIMONY
ONLY SO WE'RE JUST WAITING FOR
YOUR TWO VOTES. YES, I'M SORRY.
FOR YOUR WINDOW. YOU NEED TWO
VOTES TO. YOU NEED TWO MORE
FOLKS TO COME BACK IN.
SENATOR, YOU SAID MR MULLEN IS
ON HIS WAY, RIGHT? OKAY?
HAVE TO CATCH HIM ON TO YES. UH
ASSEMBLYMEMBER'S ITEM ONE.
SPARTA WE'RE GOING TO LIFT THE
CALL ON ITEM NUMBER ONE SB 834.
SENATE-TV ON THE ABSOLUTE. I'M
SORRY. NGUYEN. BRACING. LEVIN
MAIZE MON RIVER CERRADO. SIERRA
OR NOT VOTING. AND THEN I CAN
ADD YOU ON TWO. ITEM NUMBER TWO
SB 13 12, WHICH HAS ALREADY
PASSED SEYARTO I THANK YOU.
THANK YOU.
NO WE KNOW I KNOW YOU'RE YOU'RE
RUNNING YOUR COMMITTEE, SO WE
HAVE TWO BILLS TO VOTE ON. UH,
SP 834. RIVAS. RIVAS I BUILD
STILL ON CALL. IT NEEDS 1 13 12
IF YOU'D LIKE TO RIVAS RIVAS
SIDE. THANK YOU VERY MUCH BACK,
ALRIGHT. MR GRAYSON, I THINK OF
MR GRAYSON VOTED FOR THE SECOND
ITEM. RIGHT? SO WE JUST HAVE SB
8 34 SB 8 34 GRAYSON GRAYSON AND
I THANK YOU. 60 IT'S OUT.
ALRIGHT THAT BILL IS 60 AND IT
IS OUT TECHNICALLY. SOME OF THE
HE KNOWS FAST. AND THEN WHEN YOU
BRING IT BACK UP OKAY, SO WE SO
WE DIDN'T DO ANY. IT'S BUT
FORMALLY IT GOES ON. ALTHOUGH
PEOPLE WOULD KNOW THAT BECAUSE
LOOK AT THAT.
ALRIGHT SUSPENSE IS OVER.
MR MULLEN ON SB 834. MULLEN.
AYE. THANK YOU VERY MUCH, MR
MULLEN. AND WITH THAT THIS
MEETING IS ADJOURNED.