ALRIGHT, THERE WE ARE. OKAY OKAY
. YES, IT IS. ALL RIGHT. GOOD
AFTERNOON AND WELCOME TODAY'S
HEARING OF THE ASSEMBLY
COMMITTEE ON REVEREND TAX. WE
ARE ONE MEMBER SHORT OF A QUORUM
. WANT TO REMIND EVERYBODY THAT
FOR THIS AND FUTURE HEARINGS,
TESTIMONY WILL BE IN PERSON FOR
THE BILLS TAKING UP BEING TAKEN
UP TODAY WE WILL TAKE NO MORE
THAN TWO PRIMARY WITNESSES AND
SUPPORT AND TO PRIMARY WITNESS
IN OPPOSITION FOR A TOTAL OF
FOUR MINUTES, AND IT COULD BE
BROKEN UP INTO TWO AND TWO OR
FOUR. ALL SUBSEQUENT WITNESSES
SHOULD STATE THEIR NAME THEIR
ORGANIZATION, THEIR POSITION ON
THE BILL. ONLY WE HAVE ONE BILL
ON OUR PROPOSED CONSENT
CALENDAR. AND THAT'S FILE ITEM
ONE SB 4 40 BY SENATOR DODD.
FINALLY FOR THIS HEARING,
ASSEMBLYMEMBER'S GRAYSON WILL BE
REPLACED WITH ASSEMBLYMEMBER'S
BLOOM. AND AS SOON AS WE HAVE A
QUORUM, WE WILL BE ABLE TO UM,
VOTE ON THE VOTE. ONLY BILLS.
BUT SINCE WE DO NOT HAVE A
QUORUM, WE ARE GOING TO WE DON'T
HAVE ANY OH, I THOUGHT THESE OH,
WAIT. ALL RIGHT. I'M SORRY. THE
THESE ARE WERE STARTING WITH, UM. REGULAR ORDER. SP 4 40
ASSEMBLYMEMBER'S I MEAN, SENATOR
DODD. YOU HEAR SENT THAT'S ON
CONSENT. THESE ARE ALL CONSENT.
NO, OKAY. AH SP 5 18 ERTZBERG'S
QUAINT. HEY SENATOR HERTZBERG IS
GOING TO PRESENT THAT HE IS
RIGHT HERE.
SENATOR HERZBERG. ARE YOU READY
TO PRESENT? YES WE HAVE SP 5 18
, SENATOR LAIRD THAT YOU WILL BE
PRESENTING FIRST, AND THEN YOU
CAN MOVE ON TO YOUR BILLS AFTER
BILLS, OKAY, THREE FILES. WHAT
THIS SAYS. OKAY. CHARITY FOR ONE
SECOND. THANK YOU, SIR. THANK
YOU VERY MUCH. MADAM CHAIR,
MADAM SECRETARY. FIRST I WANT TO
ACCEPT THE COMMITTEE AMENDMENTS
ON BEHALF OF THE AUTHOR. UM HE
ALSO WANTS ME TO EXPRESS HIS
APPRECIATION TO THE COMMITTEE
FOR ALL THE EXTRAORDINARY WORK.
I DON'T KNOW IF IT'S TRUE OR
NOT, BUT I'M SURE IT IS BECAUSE,
HE SAID, SO. UM IN BRIEF. THIS
ILL WILL ALLOW THE BOARD OF
EQUALIZATION UPON REQUEST TO
MAKE PUBLIC INFORMATION
CONTAINED IN THE WIND OR TAX
RETURN ACCOMPANYING SCHEDULES.
BASICALLY WHAT THE STORY IS THAT
HIS IS HISTORICALLY THE B O. V E
HAS RELEASED THIS INFORMATION
SINCE NINTH, THE THIRTIES. I
REMEMBER I WAS THERE. AND
HOWEVER, RECENTLY IN 2000 AND 19
. WHAT HAS TRANSPIRED IS THAT
THE BE OV REEVALUATED THE. JUST
DON'T YEAH, AND DETERMINED THAT
THEY DON'T HAVE THE STATUTORY
AUTHORITY. THE PURPOSE OF THIS
MEASURE YOU HAVE BEFORE YOU IS
TO GIVE THEM THE STATUTORY
AUTHORITY BY THIS LEGISLATIVE
BODY. SV, I VOTE GOOD. UM,
WITNESSES. TYLER BLACK KNEE
CALIFORNIA OUNCIL FOR
LEGISLATIVE AND REGULATORY
AFFAIRS FOR THE WINE INSTITUTE.
AND JOHN. UH MARAMA, COLD
MANAGING PARTNER OF HAMBURG AND
FREDRICKSON ARE HERE TODAY.
THANK YOU SO VERY MUCH. MAYBE
THEY'RE NOT HERE TODAY. ARE
THERE ON THE PHONE? I GUESS YOU
DON'T DO THE PHONE LIKE WE DO.
PERFECT TIMING, MR BLACKMAN.
YES, YOU ARE UP RIGHT NOW. YEAH.
WHAT A WAY TO MAKE AN ENTRANCE.
AND IF THERE ARE TWO OF YOU,
IT'S TWO MINUTES EACH. IF YOU
ARE THE ONLY ONES SPEAKING, WE
HAVE YOU HAVE FOUR MINUTES.
RAIDS WELL, THANK YOU. EVERYBODY
AND I APOLOGIZE FOR BEING A
LITTLE LATE. UM MY NAME IS
TYLER. BLACK ME. I'M WITH THE
WINE INSTITUTE. AND WE'RE HERE
IN SUPPORT OF SB 5 18. I JUST
WANT TO BEGIN BY THINKING THE
AUTHOR AND THEIR STAFF ARE
WORKING WITH US ON THIS BILL.
THANK YOU, SENATOR HERZBERG FOR
PRESENTING IT TODAY. AND I WANT
TO THANK THE CHAIR AND YOUR
STAFF FOR HELPING US WORK ON
THESE AMENDMENTS. AS SENATOR
CENTER HERZBERG, I EXPECT SAID
THIS BILL PROVIDES FOR THE
DISCLOSURE OF WIND OR A TAX
EXCISE DATA. WHICH FOR DECADES
HAS BEEN VERY IMPORTANT ANALYSIS
FOR THE INDUSTRY. THE BOARD OF
EQUALIZATION RELEASED THIS
INFORMATION FOR 80 YEARS BEFORE
DECIDING IN 2019 THAT THEY DID
NOT HAVE THE AUTHORITY TO DO IT.
WE TRIED TO WORK WITH THE BOT TO
FIND ADMINISTRATIVE SOLUTION,
BUT THE BOT DECIDED THEY COULD
NO LONGER RELEASE THE DATA
WITHOUT CLEAR, STATUTORY
AUTHORITY. SO HERE WE ARE TODAY
AGAIN. I JUST WANT TO EXPRESS
THE IMPORTANCE OF THIS BILL. AND
THIS DATA TO THE WINE INDUSTRY.
I'M HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE. AND WITH
THAT, I'LL TURN IT OVER TO THE
TRUE EXPERT. MR JOHN MOORE.
MARCO THANK YOU. AND THANK YOU,
SENATOR HIRSCHBERG. THANK YOU.
CHAIR AND YOUR STAFF. UM I'VE
BEEN INVOLVED IN THE WINE
INDUSTRY SINCE 1969 WHEN MY DAD
HAD ME WORKING IN THE VINEYARDS
WHEN I WAS 12 YEARS OLD. I'VE
BEEN INVOLVED WITH THE HAMBURG
FREDERICTON REPORT OFFICIALLY
SINCE 2015 AS AN EDITOR. PRIOR
TO THAT PROBABLY SPENT 30 YEARS
OF DEALING WITH IT OR WORKING
WITH IT. THE DAD HAS BEEN
INCREDIBLY USEFUL TO THE
INDUSTRY TO LOOK AT SHORT TERM
TRENDS. LONG TERM TRENDS WORK ON
DEVOLUTION OF THE INDUSTRY
LITERALLY SINCE PROHIBITION. AND
WE'VE NEEDED THIS DATA. IT'S
BEEN VERY DIFFICULT. THE LAST
THREE YEARS HAVING LIMITED DATA.
ESPECIALLY WITH THINGS SUCH AS
THE PANDEMIC WILDFIRES IN 2020
AND OTHER THINGS THAT IMPACT THE
INDUSTRY THAT WE COULDN'T
ANALYZE HIS CLOSELY WITH, AS WE
WOULD HAVE LIKED TO. WE WORK
CLOSELY WITH WINE INSTITUTE AND
A NUMBER OF INITIATIVES. HAVING
THIS TYPE OF DATA HELPED US AT
THE FEDERAL LEVEL WITH THE CRAFT
BEVERAGE MODERNIZATION ACT,
WHICH SAVED WINERIES TENS OF
MILLIONS OF DOLLARS SINCE IT WAS
ENACTED IN 2018. AND IT'S JUST
BEEN VERY USEFUL, AND I
APPRECIATE THE COMMITTEE'S TIME
AND LOOKING AT THE BILL, AND
I'LL LEAVE IT AT THAT. THANK YOU
. DO WE HAVE ANY OTHER WITNESSES
AND SUPPORT ANY WITNESSES IN
OPPOSITION. ANY QUESTIONS FROM
THE COMMITTEE. NO. ALRIGHT WELL,
WE DO NOT HAVE A QUORUM YET. SO,
UM. YES WE WILL HAVE. WE WILL
TAKE A VOTE AS SOON AS WE HAVE
THE FULL COMMITTEE. ALRIGHT
SHALL WE MOVE ON TO THE NEXT
ITEM? THANK YOU VERY MUCH. THIS
SP 13 40, MADAM CHAIR. THANK
YOU. AND I DO APPRECIATE THE
WINE INSTITUTE WORKING WITH OUR
COMMITTEE. THANK YOU GUYS.
HOPEFULLY WE CAME UP WITH A GOOD
SOLUTION. 9 67 NEXT 9 13 49 67
IS NEXT SEVEN IS NEXT, OKAY?
COVERED CALIFORNIA HAS BEEN
QUITE SUCCESSFUL. AND WHAT WE'RE
TRYING TO DO IS TO BE CREATIVE
HERE. IN MAKING COVERED
CALIFORNIA MORE SUCCESSFUL. AND
SO. YOU KNOW, 2.9 MILLION PEOPLE
FIND HEALTH CARE INSURANCE, UH,
OFTEN TIMES THE DISCOUNT, AND SO
THESE HOLD A GREATER CHANCE OF
IMPROVING HEALTH CARE WHAT WE'RE
TRYING TO DO HERE. ON OF THE ONE
MILLION AROUND 900,000 PEOPLE
ACTUALLY ELIGIBLE FOR FREE
HEALTHCARE. WE'RE TRYING TO COME
UP WITH CREATIVE MANAGEMENT
TOOLS IN GOVERNMENT. TO CONNECT
THE UNINSURED. UNINSURED FOLKS
WITH THE OPPORTUNITY TO GET
HEALTHCARE. AND SO THIS REQUIRES
THE FRANCHISE TAX BOARD TO
INCLUDE A CHECK BOX ON EACH
INDIVIDUAL TAX RETURN TO SAY, DO
YOU WANT INFORMATION ON HEALTH
CARE? SO WHETHER YOU PUT STUFF
IN THE MAILBOX AND YOU HAVE
TELEVISION ADS THAT WE'VE SEEN,
IT'S JUST ANOTHER WAY TO HELP
FOLKS GET ACCESS TO THE SYSTEM
THAT WE HAVE. THAT'S PROVED SO
SUCCESSFUL. UM, THAT'S THE
PRETTY SIMPLE, BUT I THINK,
HOPEFULLY IMPACTFUL ASPECT OF
THIS MEASURE, JOSE TORRES CÁC
BECAUSE THERE'S LEGISLATIVE OUT
TO GET FOR HEALTHCARE ACCESS,
AND SYLVIA SALIH SHAW. WHO IS
THAT THIS COMMITTEE AND ALL
THESE COMMITTEES, OFTEN ON
BEHALF OF THE AMERICAN HEART
ASSOCIATION. ASK HER ABOUT?
THANK YOU. ALL RIGHT. GOOD
AFTERNOON, MADAM CHAIR AND
MEMBERS JOSE TORRES ON BEHALF OF
HEALTH ACCESS CALIFORNIA, THE
STATEWIDE HEALTHCARE CONSUMER
ADVOCACY COALITION AND A CO
SPONSOR AND SUPPORTER OF SP 967.
ASK SENATOR HERZBERG MENTIONED
THIS BILL WOULD CREATE A
CHECKBOX ON STATE INCOME TAX
RETURN FORMS THAT WOULD ALLOW
PEOPLE TO MARK IF THEY ARE
INTERESTED IN RECEIVING MORE
INFORMATION ABOUT LOW COST OR NO
COST HEALTHCARE COVERAGE. HAVING
HEALTHCARE COVERS IMPROVES
HEALTH OUTCOMES, AND CALIFORNIA
IS HAS DONE GREAT WORK IN
LEADING THE WAY IN REDUCING THE
UNINSURED RATE. THIS WOULD
BENEFIT THOSE WHO ARE UNINSURED
AND PROVIDE THEM WITH
INFORMATION ABOUT THE VARIOUS
HEALTHCARE COVERAGE OPTIONS THAT
MAY BE AVAILABLE TO THEM. SB 967
WOULD ALSO CONNECT PEOPLE WHO
MAYBE UNDERINSURED OR SIMPLY NOT
KNOW WHAT OTHER OPTIONS ARE
AVAILABLE OUT THERE. AND TO
CLARIFY THIS BILL WOULD NOT
AUTOMATICALLY ENROLL PEOPLE INTO
COVERAGE. IT WOULD LET PEOPLE
CHOOSE TO RECEIVE FURTHER
INFORMATION FROM COVERED
CALIFORNIA WHO ALREADY DOES
GREAT WORK AND THEIR OUTREACH.
THIS IS A NEW AVENUE FOR COVERED
CALIFORNIA TO USE IN THEIR WORK
TO REACH OUT TO HEALTHCARE
CONSUMERS. AND WE HOPE MEMBERS
TODAY CAN SUPPORT THIS BILL WITH
AN I VOTE, AND I THANK YOU FOR
YOUR TIME. MADAM SHARON MEMBER
SYLVIA SO LEASH ON BEHALF OF THE
AMERICAN HEART ASSOCIATION.
HAVING QUALITY HEALTHCARE
COVERAGE CAN LEAD TO IMPROVED
HEALTH OUTCOMES, ADHERENCE TO
COME AND COMMON SENSE PREVENTION
MEASURES AND LONGER TERM
SURVIVAL RATES FROM CHRONIC
DISEASES SUCH AS CARDIOVASCULAR
DISEASE. AMERICANS WITH RISK
FACTORS FOR HEART DISEASE AND
STROKE WHO ARE UNDERINSURED OR
DO NOT HAVE ACCESS TO HEALTH
INSURANCE HAVE HIGHER MORTALITY
RATES AND POOR BLOOD PRESSURE
CONTROL THAN THEIR INSURED
COUNTERPARTS. UM EFFORTS SUCH AS
SP 967 ARE ESSENTIAL TO
IMPROVING HEALTH EQUITY AND HELP
RESPOND TO HEALTH AND SOCIO
ECONOMIC CHALLENGES CURRENTLY
FACED IN CALIFORNIA. I WOULD
ALSO ADD THAT OTHER STATES HAVE
SUCCESSFULLY EMPLOYED THIS
CHECKBOX, FOR EXAMPLE, IN THE
STATE OF MARYLAND, MARYLAND,
THEY ADOPTED SIMILAR LEGISLATION
TONIGHT, 67. AND WITHIN THE
FIRST YEAR OF THEIR PROGRAM MORE
THAN 60,000 TAXPAYERS REQUESTED
THE INFORMATION. AND 53,000 WERE
DEEMED ELIGIBLE FOR NO OR LOW
COST PROGRAMS. AGAIN THIS WOULD
ADD TO THE ALREADY ROBUST
OUTREACH AND EDUCATION EFFORTS
BY COVERED CALIFORNIA WITH
MINIMAL COST TO THE STATE. AND
WE ASK FOR YOUR SUPPORT. THANK
YOU. THANK YOU VERY MUCH. DO WE
HAVE ANY OTHER WITNESSES IN
SUPPORT? THANK YOU, MADAM CHAIR
JEAN HURST HERE TODAY ON BEHALF
OF THE COUNTY HEALTH EXECUTIVES
ASSOCIATION OF CALIFORNIA AND
SUPPORT. MADAM CHAIR AND MEMBERS
FAITH BOARD JUST HERE TODAY WITH
AN IN BETWEEN POSITION FROM THE
CALIFORNIA AGENTS AND HEALTH
INSURANCE PROFESSIONALS. FIRST
OF ALL, WE VERY STRONGLY SUPPORT
THE WORK OF COVERED CALIFORNIA
AND ARE VERY PROUD OF AGENTS.
ENROLLMENT. EFFORTS WITH COVERED
CALIFORNIA, AND IT'S THROUGH
THAT EXPERIENCE THAT WE OFFER A
LITTLE BIT OF ADDED INPUT. IT
WAS SOMEBODY IS INELIGIBLE FOR
COVERAGE. SPEAKING FOR THE
OPPOSITION. IT'S NOT, UH,
POSITION BECAUSE WE SUPPORT SO
STRONGLY THE EFFORTS AND, UH
APPRECIATE THE WORK WITH THE
AUTHOR, BUT WE DO THINK IT'S
GERMANE TO THE COMMITTEE'S
UNDERSTANDING THAT THERE IS A
SIGNIFICANT TAX PENALTY IF
SOMEBODY IS INADVERTENTLY
ENROLLED IN COVERED CALIFORNIA,
WHICH WE THINK SOMEBODY MAY DO
ON THEIR OWN THROUGH SELF
ENROLLMENT, THEY WOULD HAVE TO
PAY BACK ALL OF THE PREMIUM
ASSISTANCE IF THEY'RE INELIGIBLE
AND ENROLL. SO WE THINK AT THE
POINT OF GETTING ADDITIONAL
INFORMATION, IT WOULD BE HELPFUL
TO KNOW IF THAT PERSON CURRENTLY
RECEIVES AN OFFER OF COVERAGE
THROUGH THEIR EMPLOYER. AND WITH
THAT, WE WOULD HAPPILY ANSWER
ANY QUESTIONS IF THEY ARISE. OH,
SHE ATE THAT. DO WE HAVE ANY
SPEAKERS IN OPPOSITION? ALRIGHT
THEN WE WILL GO BACK TO
QUESTIONS FROM THE COMMITTEE.
WOULD YOU LIKE TO CLOSE SENATOR?
THE ASPIRIN. I VOTE. ALL RIGHT.
LET'S MOVE ON TO FILE ITEM FOR
SP. 989 SO WE. IN THIS
LEGISLATURE PUT ON THE BALLOT.
PROP 19. HE HAD A NUMBER OF
ELEMENTS TO IT. BUT THE
IMPORTANT ELEMENT WAS IT ALLOWED
FOR PORTABILITY. SO SOMEBODY,
FOR EXAMPLE, BOUGHT THEIR HOME
IN 1965 AND SAY, THE SAN
FERNANDO VALLEY $25,000 AND
WANTED TO MOVE TO EL DORADO
COUNTY OR SAY MARIN COUNTY. UM
AND BUY A NEW HOUSE AND THEY
SOLD THEIR HOUSE FOR $2 MILLION
BECAUSE THE HOUSE IS NOW WORTH
TWO MILLION BUCKS. WHAT WE DID
WE HAD IN CALIFORNIA. IT WAS
INITIALLY 12 AND THEN 11
COUNTIES WHERE THEY HAD
PORTABILITY, AND THIS APPLIES TO
ALL 58 COUNTIES, SO THAT WHEN
SOMEBODY MOVES FROM A HOUSE
THAT'S INEXPENSIVE TO HOUSE
EXPENSIVE, WHAT WE SAID WAS UM,
YOU CAN KEEP YOUR TAX BILL IF
YOU MEET CERTAIN REQUIREMENTS
OLD EARLY IN THE LIKE, AND YOU
CAN KEEP YOUR OLD TAX BILL
BECAUSE WE DIDN'T WANT TO. ONE
OF THE CHALLENGES ARE PEOPLE
WHEN THEY ARE EMPTY NESTERS OR
THE LIKE. THEY'RE THEY'RE
NERVOUS ABOUT MOVING TO A NEW
PLACE WHERE ALL OF A SUDDEN EVEN
IF THEY HAVE ENOUGH CASH COMING
OUT OF THE SALE OF HOUSE NUMBER
ONE TO BUY HOUSE NUMBER TWO AND
HAVE NO MORTGAGE. THEY'RE
WORRIED THAT THEIR PROPERTY TAX
BILL IS GOING TO BE A LOT OF
MONEY. AND SO THE WHOLE PURPOSE
OF PROP 19 WAS TO CREATE A
CULTURE THAT RESPECTED AND TOOK
CARE OF THESE FOLKS AND DIDN'T
HIT HIM WITH STICKER SHOCK.
WELL, WE HAD IN LOS ANGELES
BECAUSE IT TOOK SO LONG FOR
PEOPLE TO FOR THE GOVERNMENT TO
FIGURE OUT HOW TO DO THIS WORK.
WE HAD STICKER SHOCK WE HAD
PEOPLE WITH WHO HAD SOLD THEIR
HOMES, RELYING ON PROPOSITION 19
A CONSTITUTIONAL CHANGE AND UH,
IMPOSED BY THE VOTERS OF THE
STATE OF CALIFORNIA AND ALL OF A
SUDDEN THEY HAD A $2000 BILL,
AND THEY FOUND THAT THEY HAD A
$15,000 BILL. AND SO THE PURPOSE
HERE IS TO PROTECT THOSE FOLKS
THAT WE ALWAYS SOUGHT TO PROTECT
AND THE VOTERS SOUGHT TO PROTECT
. AND SO WHAT WE'RE SAYING IS
THIS WILL ALLOW IN L. A COUNTY A
TAXPAYER TO TEMPORARILY PAUSE
THEIR TAX PAYMENTS WHILE THEY
HAVE PENDING APPLICATION WITH
THE ASSESSOR, BECAUSE THE
ASSESSORS VIEW WAS WELL PAY THE
15 OR 20,000 OR $30,000 BILL,
AND WE'LL REFUND IT TO YOU. WE
GET THE MONEY. I'M SORRY. THAT'S
NOT A PLAUSIBLE SOLUTION, AND IT
ALLOWS OTHER LOCAL JURISDICTIONS
IF THEY HAVE A BACKLOG TO OPT IN
. SO WE'RE THIS IS THE LONG
MARCH OF PROP 19. LAST YEAR WE
HAD A FIX ON PROP 19. THIS IS
ANOTHER FIX ON PROP 19. TO
IMPLEMENT THE WILL OF THE VOTERS
IN A RATIONAL AND COMMON SENSE
WAY THAT TAKES CARE OF FOLKS ASK
FOR YOUR VOTE. THANK YOU,
SENATOR HERZBERG. WE ARE GOING
TO TAKE A PAUSE BEFORE WE HEAR
WITNESSES TO ESTABLISH A QUORUM.
IRWIN HERE. WHEN GRAY. BLOOM.
LEVIN. PLEASE WOOLEN
PETRIE-NORRIS. WORK, ERIC. RIVAS
SARAH IT UP. WE HAVE A CORE.
ALRIGHT, WE HAVE A QUORUM. SO DO
WE HAVE WITNESSES IN SUPPORT?
MADAM CHAIR MEMBERS VANESSA
CHAVEZ WITH THE CALIFORNIA
ASSOCIATION OF REALTORS,
ALTHOUGH WE DON'T HAVE AN
OFFICIAL POSITION IN THE RECORD
, YET WE DO SUPPORT THE MERITS
OF THE BILL AND THINK THE AUTHOR
FOR CHAMPIONING THIS BILL, UM
AND ASKED FOR I VOTE. THANK YOU.
ANY OTHER WITNESSES IN SUPPORT.
WITNESSES IN OPPOSITION. HI.
GOOD MORNING CHAIR WHEN AND
MEMBERS OF THE COMMITTEE LESLIE
MORGAN, CHESTER COUNTY ACCESSORY
QUARTER. I'M A LITTLE BIT SHORT
HERE. BUT I'M ALSO THE
CALIFORNIA ASSESSORS ASSOCIATION
PRESIDENT THIS YEAR EARLIER THIS
YEAR, I WAS ABLE TO SPEAK WITH
SENATOR HIRSCHBERG THROUGH THE
DILIGENT EFFORTS OF HIS STAFF
AND THE EFFORTS OF OUR AD HOC
COMMITTEES. WE'VE BEEN ABLE TO
GET COMMITTEE AMENDS ON THIS
BILL. AND SO THE ASSOCIATION IS
GOING TO BE MOVING TO THAT
NEUTRAL POSITION, AND WE
APPRECIATE ALL THOSE EFFORTS,
SENATOR GIVE YOU A HARD TIME.
GOOD AFTERNOON, MADAM CHAIR AND
MEMBERS KARIN LANG. I'LL BE WITH
THE CALIFORNIA ASSOCIATION OF
COUNTY TREASURERS AND TAX
COLLECTORS WITH THE AMENDMENTS
OUTLINED IN THE ANALYSIS THAT
THE STAFF WORKED SO HARD TO GET
TO. WE WILL BE REMOVING
OPPOSITION AS WELL. THANK YOU.
ALL RIGHT. DO WE HAVE ANY
QUESTIONS FROM THE COMMITTEE?
ASSEMBLYMEMBER'S WORK. THANK YOU
FOR TAKING THAT AMENDMENT. I WAS
BEING I DON'T KNOW WHETHER HOW I
WOULD HAVE VOTED ON IT. BUT IT
MAKES IT EASIER FOR ME SINCE MY
ASSESSOR AND MY TAX COLLECTOR.
WE'RE BOTH CONCERNED WITH THE
BILLS. SO THANK YOU. MM. THANK
YOU. ALL RIGHT, SENATOR. WOULD
YOU LIKE TO CLOSE? JUST UH, THE
STAFF PERSON YOU'RE TALKING TO
IS FREDDIE QUINTANA, MY CHIEF F
GUTS OUT ON THIS PROBLEM. 19
STUFF FOR THE LAST COUPLE OF
YEARS, DEALING WITH ALL THE
CHALLENGES WITH THE ASSESSORS
AND TAX COLLECTORS AND EVERYBODY
ELSE IN BETWEEN. AND JUST WANT
TO GIVE HIM CREDIT FOR CREDITS.
DO I DON'T TAKE THE CREDIT. I
GIVE PEOPLE CREDIT WHO DESERVE
IT. UM AND, UH, BUT AFTER I
VOTE, THANK YOU. MOVED THE BILL.
ALL RIGHT, SO WE HAVE A MOTION
BY ASSEMBLY MEMBER QUIRK, A
SECOND BY ASSEMBLYMEMBER'S GRAY
. THE MOTION IS DUE PASS AS
AMENDED TO APPROPRIATIONS AND I
WILL SAY I APPRECIATE, UH YOUR
WORK ON THIS EFFORT, AND I ALSO
APPRECIATE YOU WILLING TO NARROW
THE BILL BECAUSE I CAN IMAGINE
FOR SENIORS. I WAS PICTURING MY
PARENTS GETTING THAT BIG TAX
BILL. AH! THAT WOULD BE QUITE
SOME STICKER SHOCK. HORRIBLE
JUST ABSOLUTELY GUT WRENCHING.
I'M GLAD WE GOT TO A POINT THAT
EVERYBODY SEEMS HAPPY. SO, MISS
HIGHLAND, CAN YOU PLEASE CALL
THE ROLL? ON SP 967. THE MOTION
IS DUE PASS AS AMENDED TO
APPROPRIATIONS. IRWIN IRWIN. I
WIN WHEN I GRAY GRAY. I BLEW
LEVINE. LEVINE I MADE MULLEN
PETRIE-NORRIS. BETWEEN OURS. I
QUIRK I REVIS SEYARTO. THAT
FILLS PAST 60. ALRIGHT WE ARE
GOING TO MOVE BACK TO, UM NINE
SP 967 HERZBERG. DO WE HAVE I'M
SURE YOU GOTTA VOTE. THE BILL.
AND SECOND. ALL RIGHT, SO WE
HAVE A MOTION BY
ASSEMBLYMEMBER'S WORK, A SECOND
BY ASSEMBLYMEMBER'S GRAY AND THE
MOTION IS DUE PASS TO
APPROPRIATIONS. MISS HIGHLAND,
PLEASE CALL THE ROLL. ON SB 5 18
. THE MOTION IS DUE PASS TO
APPROPRIATIONS. 967 ARE WE ON
LINE? 67, OKAY? ON SB 96 7. THE
MOTION IS DUE PASS AS AMENDED.
T APPROPRIATIONS. UM IRWIN
IRWIN, I WHEN I GRAY GRAY I
BLOOM LEVINE LEVINE, I MAZE
MULLEN. PETRIE-NORRIS.
PETRIE-NORRIS IKE WORK. REVIS
SARAH THAT BOTH PASSED THAT BILL
HAS PASSED. NEXT. WE ARE GOING
BACK TO SP 5 18, SENATOR LAIRD.
AND THE MOTION IS DUE PASS AS
AMENDED TO APPROPRIATIONS TO
HAVE EMOTION. SO MOVED. ALRIGHT
WE HAVE EMOTIONALLY.
ASSEMBLYMEMBER'S QUIRK, A SECOND
BY ASSEMBLY MEMBER
PETRIE-NORRIS. CAN WE PLEASE DO
THE ROLE SP 5 18, THE MOTION IS
TO PASS AS AMENDED TO
APPROPRIATIONS. IRWIN IRWIN. I
WIN WHEN I GRAY GREAT I BLOOM
LEVINE. LEVINE. I'M AMAZED
MULLEN. WELL AND I PETRIE-NORRIS
PETRIE-NORRIS LIKE WORK WORK.
REVIS. SARAH DOES. ALRIGHT THAT
PASSES 70, AND THEN WE ARE GOING
TO GO AHEAD AND VOTE ON THE
CONSENT CALENDAR AND THAT IS SP
44. UH 44. OH UM, SENATOR DODD
KIND OF EMOTION AND A SECOND.
PLEASE MOVED. ALRIGHT MOTION BY
ASSEMBLYMEMBER'S WORK, A SECOND
BY ASSEMBLYMEMBER'S
PETRIE-NORRIS. PLEASE CALL THE
ROLL. IRWIN IRWIN. I WIN WHEN I
AND THE MOTION IS DUE PASS TO
APPROPRIATIONS RECOMMEND
CONSENT, RIGHT? GREAT I BLOOM.
LEVIN. LEVINE. I'M ACES. MULLEN.
WELL, AND I PETRIE-NORRIS.
PETRIE-NORRIS LIKE WORK BY REVIS
SERONO THAT PASSES 70 THAT
PASSES 70.
OKAY, JUST TO BEFORE YOU LEAVE
ASSEMBLYMEMBER'S GRAY, WE ARE
JUST TO MAKE SURE THERE IS NO
QUESTION WE ARE GOING TO REVOTE
ON SP 989 HERTZBERG. EMOTION IN
THE SECOND, SO I THINK ON THAT
ONE WE ALREADY HAD. THE MOTION
WAS ASSEMBLYMEMBER'S QUIRK, AND
THE SECOND WAS ASSEMBLYMEMBER'S
GREG. THE MOTION IS DUE PASS TO
APPROPRIATIONS. IRWIN WHEN I WIN
WHEN I GRAY GREAT I BLOOM. LEVIN
LIVE MAZE. MULLEN. MULL AND I
PETRIE-NORRIS PETRIE-NORRIS IKE
! WORK I RIVAS CERRADO. THAT'S
70. ALRIGHT UH, NOW WE HAVE FIVE
PILLS FOR TESTIMONY ONLY. THANK
YOU, SENATOR HERZBERG, IT
APPEARS ARE ALL YOUR BILLS ARE
OUT AND YOU ARE PRESENTING. NOW
SOME, UH SENATOR PORTANTINO'S
OKAY. 40 THAT IS, UH, S B FOR
85. I THOUGHT 13 40. SCOTT THE
SOLAR PROPERTY TAXES EXHIBIT. I
THOUGHT YOU WERE DOING
PORTANTINO. ALSO IMPORTANT.
OKAY, ALRIGHT. THEN IT'S. OKAY
UH, 13 40. I THOUGHT YOU SAID
YOU WERE PRESENTING FOR
PORTANTINO. OKAY? I WILL. OKAY?
SO ONE OF. WE'RE TRYING IN
CALIFORNIA. TO MOVE TO MOVE TO A
RENEWABLE SYSTEM. AND IT'S A LOT
OF WORK. AND IT TAKES A LOT OF
DETAIL. AND IT'S. UH A LOT OF
CHALLENGES ALONG THE WAY. WE'RE
TOLD THAT. THE MOST RECENT
REGULATORY MODELS WHO REQUIRE US
TO HAVE 70 GIGAWATTS OF UTILITY
SCALE SOLAR AND 33 GIGAWATTS OF
ROOFTOP SOLAR BY 2045 ORDERS OF
MAGNITUDE THAT SIGNIFICANTLY ARE
THAT WE'RE DOING NOW. MY
RECOLLECTIONS CORRECTLY. I THINK
IT'S 70 GIGAWATTS JUST IN
CALIFORNIA IN TERMS OF WHAT
ENERGY DEMANDS ARE WHAT WE'RE
TRYING TO DO IS TO SWITCH AWAY.
WE'RE BOTH TRYING TO MOVE AWAY
FROM FOSSIL FUEL ON THE ONE
HAND, BUT WE HAVE MORE ELECTRIC
VEHICLES, AND THERE'S ALMOST OF
OTHER THINGS WE'RE SAYING, WE
GOTTA MOVE AWAY FROM GAS STOVES
INTO ELECTRIC STOVES. SO YOU
HAVE TO CREATE THE
INFRASTRUCTURE. WE'VE TALKED
ABOUT THE REGULATORY MODEL, AND
WE'VE TALKED ABOUT TRANSMISSION
LINES AND ALMOST OF THINGS AND
ONE OF THOSE CRITICAL ELEMENTS
IS UTILITY GRADE SOLAR. AND SO
THEIR CONTRIBUTION TO THE COMMON
GOOD PEOPLE IN LONG BEACH AND
SAN PEDRO DEAL WITH THE PORTSOR
LAX WITH THE AIRPORT OR YOU KNOW
THE AGRICULTURAL COMMUNITY IN
THE CENTRAL VALLEY OR ALL OF THE
OTHER ELEMENTS THAT CREATE THE
MOSAIC THAT IS THE BEAUTIFUL AND
GREAT CALIFORNIA. IT'S SO MUCH
OF THE CENTRAL VALLEY HAS AREAS
THAT ARE REALLY ADAPTABLE TO
CURRENT COUNTY IN PARTICULAR,
QUITE FRANKLY, TO SOLAR NOW IN
1980, THE VOTERS OF CALIFORNIA
PASSED PROPOSITION SEVEN. WHICH
BASICALLY SAID THAT FOR SOLAR,
YOU CAN EXEMPT YOU CAN CREATE AN
EXCLUSION FOR PROPERTY TAX
BECAUSE, AS WE ALL KNOW,
EVERYBODY HAS TO PAY PROPERTY
TAX UNLESS OTHERWISE EXCLUDED,
AND THEY WERE AND IT'S BEEN
CONTINUALLY EXTENDED AND
EXTENDED EXTENDED. AND THIS
EXPIRES IN 2024 FOR SOLAR
PROJECTS. AND SO ON. WE NEED TO
CREATE THAT LEVEL OF INCENTIVE
FOR CALIFORNIA. OTHERWISE STUFF
IS GOING TO MOVE OUT OF STATE.
WE KNOW THAT IN NEVADA HAS, I
CAN'T RECALL THE NUMBERS ARE
PRETTY SIGNIFICANT. OTHER STATES
HAVE SIGNIFICANT INCENTIVES WE
HAVE. NEVADA HAS A 55% PROPERTY
TAX ABATEMENT. FOR SOLAR
PROJECTS. ARIZONA 80% PROPERTY
TAX ABATEMENT, AND SO FOR US TO
BE COMPETITIVE BOTH TO BRING
JOBS LOCALLY HERE IN CALIFORNIA
AND TO PROVIDE FOR THE THIS
ALTERNATIVE ENERGY, WHICH IS
PART OF THE ARCHITECTURE OF OUR
NEW THINKING OF WHAT WE'RE
TRYING TO DO IN THE RENEWABLE
SPACE. THIS IS ONE OF THE
NECESSARY COMPONENTS. SO BUT
THIS BILL DOES IS BASICALLY
UPDATES AND EXTENDS THE
EXTENSION WITH MODIFICATIONS OF
THIS EXEMPTION. PARTIAL
EXEMPTION FOR PROPERTY TAX FOR
THESE LARGE UTILITY GRADE SOLAR
PROJECTS SO THAT THEIR
COMPETITIVE IN CALIFORNIA WITH
OTHER JURISDICTIONS, AND WE CAN,
IN FACT ENGAGED IN THIS
EXTRAORDINARY AND IMPORTANT VERY
QUICK TRANSITION. AND SO THAT IS
THAT'S REALLY WHAT THIS BILL IS
ABOUT. SHANNON EDDIE IS HERE BUT
LARGE CARE SOLAR ASSOCIATION
RICK I'M UP SOLAR ENERGY
INDUSTRY ASSOCIATIONS HERE. TO
TALK ON OUR BEHALF. V BONE.
THANK YOU. THANK YOU. UM MADAM
CHAIR AND COMMITTEE MEMBERS. I
THANK YOU FOR HAVING ME MY NAME
IS RICK Gí
CALIFORNIA DIRECTOR AT THE SOLAR
ENERGY INDUSTRIES ASSOCIATION
WITH THE NATIONAL ASSOCIATION.
FOR THE SOLAR INDUSTRY. WE'RE
HERE TO EXPRESS OUR SUPPORT FOR
SP 13 40. THIS BILL IS CRITICAL
TO HELPING THE STATE METERS LONG
TERM CLIMATE ENERGY RELIABILITY
NEEDS IN A MANNER THAT KEEPS
CALIFORNIA COMPETITIVE WITH
NEIGHBORING STATES. AND ENSURES
THAT TENS OF THOUSANDS OF JOBS
STAY IN CALIFORNIA, RECOGNIZING
THE IMPORTANT ROLE THAT SOLAR
ENERGY WOULD PLAY IN
CALIFORNIA'S ENERGY MIX. THE
CALIFORNIA VOTERS PASSED PROP.
SEVEN AND 1980 AUTHORIZING
LEGISLATURE TO EXCLUDE THE
CONSTRUCTION OF SOLAR ENERGY
SYSTEMS FROM THE DEFINITION OF
NEWLY CONSTRUCTED FOR THE
PURPOSES OF PROPERTY TAXATION.
THIS APPROACH HAS HELPED TO
BRING DOWN THE COST OF SOLAR'S
AND THAT IS ONE OF THE MOST
COMPETITIVE PRICE RESOURCES IN
THE STATES ENERGY MIX, WHICH IS
CRITICAL TO HELPING THE STATE
MANAGE COSTS OF GRID TRIPLES IN
SIZE OVER THE NEXT 20 YEARS.
FURTHER SP 13 40 ENSURES THAT
HOMEOWNERS AND SMALL BUSINESSES
THAT CHOOSE TO INVEST IN CLEAN
ENERGY OR NOT UNNECESSARILY
BURDENED BY HIGHER COSTS, SEE A
GREAT GREATLY APPRECIATE THE
EFFORTS OF THE ASSESSORS AND THE
COUNTIES TO WORK WITH THE SOLAR
INDUSTRY AND FINDING COMMON
GROUND. AS WELL AS COMMITTEE
STAFF. UH IN IN, UM AND WORKING
WITH COMMITTEE STAFF. WE HAVE
TAKEN AN AMENDMENT ON THE BILL
THAT SUNSETS THE POLICIES FOR
BOTH ROOFTOP AND LARGE SCALE
SYSTEMS IN 2035. UM WE URGE YOUR
I VOTE FOR THIS BILL ON THIS
CRITICALLY IMPORTANT MATTER
TODAY. THANK YOU. MADAM CHAIR
MEMBERS. MY NAME IS SHANNON
EDDIE I'M THE EXECUTIVE DIRECTOR
OF A LARGE SCALE SOLAR
ASSOCIATION, WHERE A STATE BASED
TRADE GROUP REPRESENTING THE
DEVELOPERS AND OWNERS OF THE BIG
PROJECTS. UM SO I WANT TO TALK A
LITTLE BIT FIRST, JUST THANKS TO
THE OTHER. EXCUSE ME, SENATOR
HERZBERG FOR HIS WORK ON THIS
BILL. IT'S BEEN A TRICKY BILL
BECAUSE THIS IS REALLY THE FIRST
TIME THAT THESE PROJECTS WILL
HAVE BEEN TAXED IN THIS WAY ON A
REGULAR BASIS. DO I WANT TO TALK
A LITTLE BIT ABOUT HOW THE BILL
WAS CRAFTED AND WE WERE WORKING
TO BALANCE A COUPLE OF DIFFERENT
THINGS. ONE JUST RECOGNIZING THE
SHEER VOLUME OF SOLAR THAT'S
GOING TO BE COMING ONLINE, SOLAR
AND STORAGE WILL FORM THE
BACKBONE OF THE STATE'S GRID AS
WE DE CARBONIZED, SO IT'S GOING
TO BE A LOT OF SOLAR. AND SO
WHAT WE WERE TRYING TO DO IS
MAKE SURE THAT WE'RE BOTH
COMPENSATING THE COUNTIES THAT
ARE CITING THE PROJECTS, BUT AT
THE SAME TIME, WE'RE NOT
OVERBURDENING THE RATE PAIRS
WITH THE COSTS OF THIS NEW
TAXATION. THE OTHER PIECES THAT
WE WANT TO MAKE SURE THAT
CALIFORNIA STAYS COMPETITIVE
WITH THE NEIGHBORING STATES. UM
ARIZONAAND NEVADA SPECIFICALLY
HAVE, AS AS SENATOR POINTED OUT,
SOME REALLY AGGRESSIVE TAX
STRUCTURES, SO WE WANTED TO MAKE
SURE THAT WE ARE COMPETITIVE.
WE'RE STILL GOING TO BE PAYING
MORE THAN THE OTHER STATES. BUT
IT'S LESS THAN WE WOULD
OTHERWISE. THAT'S GOING TO KEEP
REVENUES AND JOBS IN CALIFORNIA.
AND THESE ARE GOOD JOBS FOR THE
UTILITY SCALE INDUSTRY. THE
PROJECTS EMPLOY EXCUSE ME
UNIONIZED LABOR ACROSS THE BOARD
, MOSTLY FIVE CRAFT AS WELL. SO
THE BILL IS DESIGNED TO MAKE
SURE THAT THAT, UM THAT THESE
PROJECTS TO STAY IN STATE THE
OTHER THING THAT YOU'LL FIND IN
THIS BILL IS THAT THERE'S A LOT
OF SPECIFICITY HERE, AND WE DID
THAT, BECAUSE AGAIN, THIS IS THE
FIRST TIME THAT THESE PROJECTS
WILL HAVE BEEN TAXED ON A
REGULAR BASIS AND BECAUSE THE
STATE IS RELYING ON THESE
PROJECTS, BOTH FOR RELIABILITY
AND FOR OUR CLIMATE TARGETS. WE
WANTED TO BE UNAMBIGUOUS IN THE
LEGISLATION TO MAKE SURE THAT
THERE WOULD BE NOTHING TO STALL
OR DELAY THESE PRO THE PROJECTS
COMING ONLINE DOING ANY KIND OF
MIXTURE, INTERPRETATION. ALONG
THOSE LINES. WE'VE HAD GREAT
DISCUSSIONS WITH THE COUNTIES
AND THE ASSESSORS OVER THE LAST
LITTLE WHILE WORKING, AND I
THINK WE'VE ARRIVED AT A BILL
THAT THAT MEETS BOTH THE LONG
TERM NEEDS AND THE CERTAINTY
THAT THE DEVELOPERS NEED BUT
ALSO SOMETHING THAT THE
ASSESSORS CAN IMPLEMENT. ALSO
PLEASED TO ANNOUNCE TO UM.
CONFIRM THE SUPPORT OF LABORERS
AND THE IRONWORKERS AS WELL. ASK
YOUR I VOTE. THANK YOU. MADAM
CHAIR AND MEMBERS DELANEY HUNTER
ON BEHALF OF A CP, CALIFORNIA A
RIBBON, PDF RENEWABLES AND
FOREFRONT POWER ALL IN STRONG
SUPPORT, AND I WON'T MAKE ANY
OTHER COMMENTS. JUST BE HERE IN
CASE THERE'S QUESTIONS.
APOLOGIZE SUPPORT. AFTERNOON
MADAM CHAIR MEMBERS OF THE
COMMITTEE ALBERTO TORRICO MAP OF
SUNRUN AND SUPPORT WOMAN
MAJORITY LEADER OF THE ASSEMBLY
, STONE STONE ADVOCACY FOR THE
CALIFORNIA SOLAR AND STORAGE
ASSOCIATION IN SUPPORT. HELLO
RYAN MCCARTHY ON BEHALF OF A S
RECURRENT ENERGY AND ARE W E AND
SUPPORT. SILVIO FOR OUR WE HAVE
A SON POWER IN SUPPORT. GOOD
AFTERNOON NOW WOULD CORDANI ON
BEHALF OF CLEAR WAY IN SUPPORT?
THANK YOU, SIR. GOOD AFTERNOON
CHAIR AND MEMBERS. TIFFANY FAN
INTERSECT POWER IN SUPPORT.
THANK YOU. ANY WITNESSES.
WITNESSES AND OPPOSITION. ARE
YOU A PRIMARY WITNESS IN
OPPOSITION? NO. NOPE. ALL RIGHT.
GOOD AFTERNOON CHAIR IRWIN,
MEMBERS OF THE COMMITTEE, LESLIE
MORGAN'S CHESTER COUNTY ASSESSOR
RECORDER IN CALIFORNIA ASSESSORS
ASSOCIATION PRESIDENT. THIS IS
ANOTHER EXAMPLE OF WHERE WE HAD
OPPOSED UNLESS AMENDED POSITION
IN ORDER TO ACCOMMODATE THE
ADMINISTRATIVE PRACTICES WITHIN
THE OFFICES, WELL, UNDERSTANDING
THE PROTECTIONS IN PLACE FOR THE
TAXPAYERS, AND ONCE AGAIN, WE
WERE ABLE THROUGH DILIGENT
EFFORTS WITH STAFF WITH ALL
THOSE PARTIES INVOLVED. GET TO A
NEUTRAL POSITION WITH THE
COMMITTEE AMEND. SO WE THANK YOU
FOR ALL YOUR EFFORTS. THANK YOU.
THANK YOU, MADAM CHAIR AND
MEMBERS JEAN HURST HERE TODAY ON
BEHALF OF THE URBAN COUNTIES OF
CALIFORNIA AND THE RURAL COUNTY
REPRESENTATIVES OF CALIFORNIA IN
A SIMILAR POSITION WITH THE
ASSESSOR. WE APPRECIATE THE
SPONSORS AND THE AUTHORS OFFICE
WORKING WITH US ON AMENDMENTS.
WE LOOK FORWARD TO REMOVING OUR
OPPOSITION. JEFF NEAL WITH THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES IN A SIMILAR POSITION.
THIS BILL HAS COME A LONG WAY
REALLY APPRECIATE THE CONSISTENT
OUTREACH BY BOTH THE AUTHOR AND
THE SPONSORS AND HOPE THAT WE
CAN COME TO FULL AGREEMENT SOON.
THANK YOU. RIGHT? DO WE HAVE ANY
QUESTIONS FROM THE COMMITTEE?
ASSEMBLYMEMBER'S HAS ALSO A
MEMBER OF THE UM UTILITIES
COMMITTEE. UM IN GENERAL. WE
DON'T LIKE BILLS THAT FAVOR ONE
TECHNOLOGY OVER ANOTHER. UM
PARTICULARLY, I MEAN, YOU HAVE A
HUGE COST ADVANTAGE, FOR EXAMPLE
, ON OVER GEOTHERMAL, AND YET
THEY'RE PAINFUL PROPERTY TAX.
AND, FRANKLY, THE PEOPLE WHO RUN
GEOTHERMAL, UH AH, DON'T WANT
EXEMPTION BECAUSE IT'S VERY
IMPORTANT FOR THOSE COUNTIES
THAT THEY GET THE PROPERTY TAX
AND THEY FEEL THEY'D BE
ABANDONED. HE KNOWS PEOPLE WHO
WORK FOR THEM. WHO WOULDN'T HAVE
ENOUGH SO I WON'T BE SUPPORTING
THE BILL. UM AND. I'M SORRY.
I'VE SUPPORTED ALL YOUR OTHER
BILLS. I THINK, BUT NO PROBLEM.
ALL RIGHT. THANK YOU, SIR.
GENTLEMEN. FRIDAY NIGHT. I JUST
NEED TO CLARIFY THAT YOU WILL BE
TAKING THE YOU YOU'RE WILLING TO
AMEND THE BILLS TO TREAT
INTANGIBLE ASSETS FOR THIS
EXCLUSION CONSISTENTLY WITH THE
GENERAL TREATMENT OF INTANGIBLES
AND EXISTING LAW. THANK YOU VERY
MUCH. THE ANSWER IS YES. ALL
RIGHT. AND THIS IS ONLY
PRESENTATION ONLY. BUT WOULD YOU
LIKE TO CLOSE? I WOULD. INDEED
NUMBER NUMBER ONE IS AGAIN
GIVING CREDIT WHERE CREDIT'S
DUE, AND ALL THE NEGOTIATION AND
HOMEWORK, WHICH IS A TON OF WORK
GOES TO MY LEGISLATIVE DIRECTOR.
CHRISTINE, ARE YOU SITTING HERE?
AND GIVE HER THE CREDIT BECAUSE
SHE'S PUT THE ELBOW GREASE IN
AND YOU GIVE THEM THE CREDIT.
SECONDLY I'VE HAD SOME
COMMUNICATIONS FROM FOLKS WHO I
HOLD IN HIGH REGARD THE LABOR
COMMUNITY THAT WE'RE TALKING
ABOUT OPPOSING. I GUESS THEY
HAVEN'T SO FAR. MAYBE THEY HAVE
IT OR NOT. BUT I WANT TO JUST
INDICATE TO THE PUBLIC RECORD.
I'LL SIT DOWN AND WORK WITH THEM
TO SEE IF WE CAN FIND OUT
WHATEVER SOLUTIONS NECESSARY
HAVEN'T BEEN WORKING ON OTHER
MATTERS AND HAVEN'T SPENT ENOUGH
TIME. IT'S BEEN CHRISTINE. IT'S
BEEN RUNNING THE TRAPS ON THIS
FOR ME, BUT I'LL MAKE A
COMMITMENT TO THAT BECAUSE IT'S
IMPORTANT. THANK YOU VERY MUCH.
YES. THANK YOU. ALRIGHT SO THIS
WILL BE A RECORD ON SB PRESENT
PORTANTINO'S BILL, UM WE HAVE A
PIECE OF BUSINESS TO TAKE CARE
OF FIRST. WANTS TO PASS. HERE HE
IS, WE ARE GOING TO WITHOUT
OBJECTION. RESCIND THE ACTION ON
SB 989 AND TAKE. ANOTHER VOTE SO
I WILL ASK FOR. WE HAVE SOME
TECHNICALITIES THAT WE'RE NOT
QUITE MET. SO CAN I HAVE A
MOTION? I THINK ASSEMBLYMEMBER'S
QUIRK AND ASSEMBLYMEMBER'S
PETRIE-NORRIS. THIRD TIME,
HOPEFULLY AS THE CHARM. THE
MOTION ON SP 989 IS DO PASS AS
AMENDED TO APPROPRIATIONS. IRWIN
IRWIN, I WIN GRAY BLOOM. LEVIN.
MAZE. MULLEN. WOOLEN I
PETRIE-NORRIS PETRIE-NORRIS I
WORK. I GRIEVOUS SEYARTO. IT'S
ON CALL. IT NEEDS TO ALL RIGHT
STEP BILL NEEDS TO AND, UH
ASSEMBLY MEMBER SENATOR
PORTANTINO. YOU ARE NEXT ON FILE
ITEM FIVE. WHENEVER YOU'RE READY
, SENATOR. THANK YOU, MADAM
CHAIR AND MEMBERS. I'M HERE TO
PRESENT SB 4 85. WHICH SIMPLY
EXTENDS THE FILM AND TELEVISION
TAX CREDIT THREE POINT OH, UNTIL
2030 FROM ITS CURRENT SUNSET IN
2025. THE SUCCESS WE'VE HAD WITH
THE CALIFORNIA FILM TAX CREDIT
HAS HELPED BRING SIGNIFICANT
PRODUCTION BACK TO WHERE IT
BELONGS AND CREATED THOUSANDS OF
GOOD PAYING MIDDLE CLASS UNION
JOBS. 10 YEARS AGO, THERE WAS
VERY ALMOST NO FILMING AND
TELEVISION PRODUCTION IN
CALIFORNIA DUE TO COMPETITION.
MANY OF OUR STAGES WERE EMPTY
AND THERE HAD BEEN A TOTAL DRAIN
ON PRODUCTION AS WELL AS JOBS
THAT WENT WITH IT. PROVIDING BY
PROVIDING AN EXTENDED WINDOW OF
TIME FOR THE CURRENT TAX CREDIT
, THE MOTION PICTURE INDUSTRY
AND THE TELEVISION PRODUCTION
AND MOST IMPORTANTLY, ITS CREWS
WILL BE ABLE TO PLAN LONG TERM
FOR THEIR PROJECTS IN CALIFORNIA
AND STAY HOME. UM THAT'S
IMPORTANT. WE WANT THIS
WONDERFUL WORKFORCE TO WORK IN
CALIFORNIA. THE DECISIONS THAT
ARE MADE, UM TODAY AFFECT YEARS
OUT, AND THAT'S WHY EXTENDING
THIS CREDIT WILL GIVE THE
INDUSTRYTIME TO COMPETE WITH
GEORGIA AND THE UNITED KINGDOM.
FRANKLY, MY DAUGHTER SPENT ALL
OF COVID WORKING IN BERLIN ON
MATRIX FOUR. UM IT WOULD HAVE
BEEN NICE TO HAVE HER HOME
DURING COVID AND INSTEAD OF
WORRYING ABOUT HER ON THE OTHER
SIDE OF THE WORLD, UM THERE ARE
927,000 PEOPLE DIRECTLY, UH, IN
THE CALIFORNIA ECONOMY THAT THIS
TAX CREDIT SUPPORTS, UH WITH
ANOTHER 2.6 MILLION JOBS, UM,
THAT ARE ANCILLARY TO THE
INDUSTRY THAT BENEFIT FROM THIS
TAX CREDIT BY EXTENDING IT WILL
CONTINUE TO CREATE THESE JOBS
NURTURE AND INDUSTRY THAT'S BEEN
PART OF THE CALIFORNIA HISTORY
AND FOLKLORE FOR 100 YEARS, UM,
ONE OF THE THINGS THAT'S
IMPORTANT TO RECOGNIZE HIS LAST
YEAR'S, UH, TAX CREDIT INCLUDED
MONEY TO BUILD MORE SOUND
STAGES. THE LIFE CYCLE OF A
SOUND STAGES, 100 YEARS. AND SO
THAT'S 100 YEARS OF MIDDLE CLASS
UNION JOBS ON THOSE STAGES AS
THOSE STAGES GET BUILT AND USED
BY THIS INDUSTRY. WE DO. WE'VE
BEEN WORKING WITH YOUR STAFF,
MADAM CHAIR ON LEGISLATIVE
COUNCIL AMENDMENTS TO COMPLY
WITH THE COMMITTEE'S POLICY. UH,
SECTION 41 I BELIEVE. THERE'S
BEEN AN AGREEMENT ON ON THAT
LANGUAGE, SO I APPRECIATE YOUR
STAFF WORKING WITH MY STAFF AND
ALLEGED COUNCIL TO GET THAT
READY. OBVIOUSLY THIS IS A
SUNSET EXTENSION. I KNOW THERE'S
BEEN SOME CONCERNS FROM SOME
FOLKS ABOUT UM, THE APPLICATION
ACROSS CALIFORNIA. YOU KNOW,
WE'RE GOING TO BE LOOKING AT ALL
OF THOSE IMPLICATIONS AS THIS
PROJECT IS THIS TAX CREDIT AND
MOVES ON. UM WITH THE INDUSTRY
WITH OUR LABOR PARTNERS WITH THE
FOLKS WHO ARE THE FRONT LINE
WORKERS IN THIS INDUSTRY. UM
WE'RE WORKING WITH THEM. UM AND
WE WANT TO GET IT RIGHT. BUT OUR
FIRST STEP IS TO GET IT OUT OF
THIS COMMITTEE, MOVE IT TO
APPROPRIATIONS AND CONTINUE TO
WORK ON IT OVER BREAK. TO SEE
WHAT WE WHAT WE MIGHT OR MIGHT
NOT DO AS WE EXTEND THE CREDIT,
AND SO I WOULD APPRECIATE YOUR
SUPPORT. I KNOW YOU'RE UP FOR A VOTE TODAY. UM
BUT WHEN APPROPRIATE WITH
CERTAINLY REQUEST AND I VOTE TO
CONTINUE THIS CONVERSATION
MOVING FORWARD. AND WITH ME. I
KNOW WE HAVE SOME OF THE LABOR
PARTNERS IN THE MOTION PICTURE
ASSOCIATION. MELISSA PATAKI IS
HERE TO SPEAK ON BEHALF OF THE M
P A. AND I BELIEVE THERE ARE A
NUMBER OF LABOR FOLKS WHO ALSO
WANT TO ADD THEIR THEIR COMMENTS
AS WELL AS APPROPRIATE. THANK
YOU. CHAIR IRWIN, VICE CHAIR
NGUYEN. UM AND MEMBERS OF THE
COMMITTEE. MY NAME IS MELISSA
ATTACK, AND I'M HERE ON BEHALF
OF THE MOTION PICTURE
ASSOCIATION AND ITS MEMBER
COMPANIES. DISNEY NBCUNIVERSAL,
NETFLIX, PARAMOUNT, SONY
PICTURES AND WARNER BROTHERS.
NPR'S MEMBERS AS YOU ALL ARE
AWARE OF THE LEADING PRODUCERS
AND DISTRIBUTORS OF MOTION
PICTURES, TELEVISION AND
STREAMING SERIES ACROSS ALL
EXHIBITION PLATFORMS FROM MOVIE
THEATERS TO BROADCASTING CABLE
TELEVISION. TO THE INTERNET AND
STREAMING SERVICES. THANK YOU
FOR THE OPPORTUNITY TO TESTIFY
TODAY A AND ITS MEMBER COMPANIES
ARE IN STRONG SUPPORT OF SB 4 85
SENATOR PORTANTINO'S LEGISLATION
TO EXTEND THE PRODUCTION TAX
CREDIT PROGRAM FOR AN ADDITIONAL
FIVE YEARS THROUGH JUNE. 30TH
2030 THE SUCCESS OF THE PROGRAM
SPEAKS FOR ITSELF. IN MARCH
EARLIER THIS YEAR, THE LOS
ANGELES ECONOMIC DEVELOPMENT
CORPORATION PUBLISHED ITS STUDY
OF THE FILM AND TELEVISION TAX
CREDIT PROGRAM FOR THE YEARS
2015 TO 2020 WHAT WE OFTEN REFER
TO AS THE TWO POINT OH PROGRAM.
LADY C FOUND THE FOLLOWING THE
169 MOTION PICTURE AND TV AND
STREAMING SERIES PRODUCTIONS IN
THE PROGRAM CONTRIBUTED OVER
$21.8 BILLION TO CALIFORNIA'S
ECONOMY. SUPPORTED 110,000 JOBS
, PAYING SOME $7.7 BILLION IN
WAGES AND GENERATED OVER $951.5
MILLION IN STATE AND LOCAL
REVENUE. CALIFORNIA HAS BEEN
ABLE TO RETAIN AND ATTRACT
PRODUCTIONS WITH THIS PROGRAM.
BUT MORE THAN 300 JURISDICTIONS
HAVE PRODUCTION TAX CREDITS ALL
OVER THE COUNTRY AND ALL OVER
THE WORLD THAT AGGRESSIVELY
COMPETE TO ATTRACT PRODUCTIONS
TO THEIR JURISDICTION. LAD C
ALSO STUDIED 157 OF THE MORE
THAN 300 PRODUCTIONS THAT WERE
NOT ABLE TO TAKE ADVANTAGE OF
THE PRODUCTION PRODUCTION TAX
CREDIT PROGRAM BECAUSE IT'S
OVERSUBSCRIBED. THOSE PROJECTS
WOULD HAVE CONTRIBUTED AN
ESTIMATED $7.7 BILLION IN
ECONOMIC OUTPUT SUPPORTING AN
ESTIMATED 28,000 JOBS, PAYING
MORE THAN 2.5 BILLION IN
ESTIMATED WAGES. EXTENDING THIS
PROGRAM NOW GIVES PRODUCERS
CERTAINTY THAT THIS EFFECTIVE
PROGRAM WILL CONTINUE THROUGH
THE REST OF THIS DECADE. THIS IS
IMPORTANT FOR BOTH FILM AND
SERIES PROJECTS. FOR GREEN
LIGHTING MOVIES. IT CAN TAKE
MANY YEARS TO BRING A PROJECT TO
FRUITION AND THE CERTAINTY THAT
THIS PROGRAM WILL BE IN EFFECT
WILL ALLOW PRODUCERS TO PLAN TO
KEEP THEIR PROJECTS IN
CALIFORNIA. SERIES PRODUCERS,
BOTH TV AND STREAMING PLAN FOR
THEIR SERIES TO BE SUCCESSFUL
FOR 56 YEARS OR HOPEFULLY LONGER
. THE PREDICTABILITY OF
CALIFORNIA'S PRODUCTION TAX
CREDIT PROGRAM IS VITAL. TO A
COMPANY'S DECISION. THE
COMPANY'S DECISION MAKING
REGARDING WHERE TO LOCATE ITS
PRODUCTIONS. WE URGE THE
COMMITTEE SUPPORT FOR SB 4 85 TO
EXTEND THE SUCCESSFUL PROGRAM
FOR FIVE ADDITIONAL YEARS. THANK
YOU, AND I'M HAPPY TO ANSWER ANY
QUESTIONS. ALL RIGHT. DO WE HAVE
OTHER SPEAKERS IN SUPPORT? MADAM
CHAIR. MY NAME'S JIM POHLMAN.
I'M THE BUSINESS AGENT, UH VIA
TSC LOCAL 16 OUT OF SAN
FRANCISCO. SUPPORT REPRESENT ALL
THE BEHIND THE CAMERA
TECHNICIANS. WE ARE IN SUPPORT
OF 84 85 IT AT IF IT HAS SOME
AMENDMENTS TO ENTICE PRODUCTIONS
OUTSIDE OF THE L. A ZONE. THE
FILM AND TELEVISION TAX
INCENTIVE HAS GENERATED 13.4
BILLION IN TOTAL SPEND SINCE IT
WAS IMPLEMENTED AND 100 AND 44
MILLION OF THAT WAS SPENT
OUTSIDE THE ZONE A LITTLE OVER
1. I UNDERSTAND THAT L. A IS THE
MAIN PRODUCTION ZONE, BUT THE
BAY AREA IS ALSO KEY MEDIA
PRODUCTION HUB. WITH COMPANIES
LIKE LUCASFILM, PIXAR, GOOGLE,
ADOBE AND OTHERS BEING BASED
THERE. WITH YOUR LEGISLATION. WE
HAVE THE OPPORTUNITY TO EXPAND
THE PROGRAM TO INCLUDE THE BAY
AREA. IN THE INCENTIVE PROGRAM
THAT WILL BRING MORE PRODUCTION
TO THE STATE. I WOULD LIKE YOU
TO CONSIDER AN AMENDMENT. TWO SB
4 85 TO INCREASE THE ADDITIONAL
CREDIT TO 10% FOR THE PRODUCTION
SHOOTING IN THE NINE BAY AREA
COUNTIES. MYSELF AND THE OTHER
BAY AREAS. STAKEHOLDER HOLDERS
WOULD APPRECIATE YOUR SUPPORT IN
THIS AMENDMENT. THANK YOU. THANK
YOU. AND THEN FOR THE REST OF
THE SPEAKERS, JUST NAME AND
POSITION. MICHAEL BURNS, UM,
LOCAL BARRIER TO LIGHTING
TECHNICIAN. THANK YOU. I'M
SORRY. I CUT THE CUT YOU A
LITTLE SHORT NAME? UM YOUR
POSITION AND THEN YOUR POSITION
ON THE BILL MICHAEL BURNS,
BARRIER LIGHTING TECHNICIAN AND
HERE TO SUPPORT THANK YOU.
ORGANIZATION HELLO, STEPHANIE
SIMPSON, ASSISTANT LOCATIONS
MANAGER AND HERE TO SUPPORT.
HEATHER MACLEAN. SORRY. I'M
LOSING MY VOICE, UM, LOCATION
MANAGER ITH TEAMSTERS 27 85. I
SUPPORT THE BILL, BUT WITH
AMENDMENTS SIMILAR TO WHAT THEY
JIMBO MONTA. GOOD AFTERNOON OR
IN LATINA ON BEHALF OF THE STATE
BUILDING AND CONSTRUCTION TRADES
COUNCIL OF CALIFORNIA ARE HALF A
MILLION MEMBERS WHO BUILDS DOWN
STAGES IN SOUTHERN CALIFORNIA
AND ALL OVER THE STATE IN STRONG
SUPPORT OF THIS BILL. MADAM
CHAIR CHRIS MCKAY LI ON BEHALF
OF THE HOLLYWOOD CHAMBER OF
COMMERCE AND STRONG SUPPORT.
THANK YOU. GOOD AFTERNOON CHAIR
AND MEMBERS TRACEY STEPHENS ON
BEHALF OF NETFLIX, ALSO IN
STRONG SUPPORT. GOOD AFTERNOON,
BRIDGET MCGOWAN ON BEHALF OF THE
WALT DISNEY COMPANY AND SUPPORT
THANK YOU. MADAM CHAIR MEMBER
SARAH FLOCKS ON BEHALF OF THE
CALIFORNIA IATSE COUNCIL, AS
WELL AS THE ENTERTAINMENT UNION
COALITION IN SUPPORT. THANK YOU.
GOOD AFTERNOON, RUI LAREDO, WITH
BRAUNSTEIN ON BEHALF OF WARNER
BROTHERS, DISCOVERY AND SUPPORT.
THANK YOU. MADAM CHAIR AND
MEMBERS MATT BROUGHT ON BEHALF
OF THE TEAMSTERS IN SAG AFTER
AND SUPPORT GOOD AFTERNOON,
MADAM CHAIR AND MEMBERS MISSY
JOHNSON WITH NIELSEN MERKSAMER
HERE ON BEHALF OF THE DIRECTORS
GUILD OF AMERICA IN SUPPORT.
GOOD AFTERNOON. PAT CHOICE ON
BEHALF OF NBC, UNIVERSAL AND
SUPPORT. THANK YOU. THANK YOU.
DO WE HAVE ANYBODY HERE IN
OPPOSITION? ALRIGHT UH DO WE
HAVE QUESTIONS OR COMMENTS FOR
THE SENATOR? YES. SO SENATOR.
IT'S A VERY IMPORTANT BILL AND
SUPPORTING IT COMES UP FOR A
VOTE. IN HERE IN APPROPRIATIONS.
UM I AM CONCERNED THAT STATES DO
THIS SORT OF THING. GIVE TAX
BREAKS. BUT YOU HAVE TO FIGHT
FIRE WITH FIRE AND YOU'RE DOING
THE RIGHT THING. THANK YOU.
WOULD YOU LIKE TO CLOSE? THANK
YOU, MADAM CHAIRMAN AGAIN. I
JUST WANT TO SAY THANK YOU TO
YOUR STAFF AND MY STAFF FOR
FIGURING OUT THE SECTION 41
ISSUE. OBVIOUSLY THE ZONE.
PERCENTAGES IS IMPORTANT. YOU
KNOW, THIS IS FOR CALIFORNIA AS
A WHOLE, AND WE'RE GOING TO BE
LOOKING AT THAT. SO IT'S A IT'S
THE RIGHT QUESTION TO ASK.
OBVIOUSLY, IT'S MY HOPE,
FRANKLY, TO HAVE THIS CREDIT
EXPANDED IF APPROPRIATE, AND IF
WE CAN WORK OUT THE FINANCIAL
DETAILS, AND SO THE NEED IS
GREAT. UM, AND THE MORE WE FUND
THIS MORE IT PAYS FOR ITSELF AND
THE MORE IT CREATES THOSE JOBS
THAT WE WANT TO KEEP IN
CALIFORNIA. SO WE HAVING THOSE
CONVERSATIONS OVER BREAK AND IF
YOU BRING IT UP FOR A VOTE, I
WILL RESPECTFULLY ASK FOR AN
IDEA. THANK YOU VERY MUCH FOR
YOUR PRESENTATION. THANK YOU. WE
ARE GOING TO JUST TAKE, UH, LIFT
THE CALL FOR SP 989.
ASSEMBLYMEMBER'S FOR
ASSEMBLYMEMBER'S GRAY. LIFTING
THE CALL ON SP 989. THE MOTION
IS DUE PASS AS A MINUTE TO
APPROPRIATIONS GRAY GRAY EYE.
REPLACE 3333 STRIKES. THIRD TRY.
YEAH. HOW MANY MORE DO WE NEED?
ONE MORE PLACE THE CALL ALRIGHT
FOR REPLACING THE CALL, AND NOW
WE ARE READY FOR SENATOR
BRADFORD DID HE IS THE OUTSIDE
OR.
AS A SAG MEMBER. I SUPPORT THAT
PRIOR BUILT TO YOUR WHAT? BAG
MEMBER. YOUR SAG MEMBER. LONG
TIME AGO. NOT ANYMORE BECAUSE
THIS IS THIS IS SHOW BUSINESS
ANYWAY, YOU KNOW. SHOW BUSINESS
ARE RIGHT IT IS YOUR TURN.
SENATOR BRADFORD WELCOME CHAIR.
AND I'M PRESENTING SP 777, WHICH
IS A JUMPSTART ACT, AND THAT'S
WHAT WE HOPE IT WILL DO. TO JUMP
START THE ECONOMY AND
UNDERSERVED COMMUNITIES
THROUGHOUT THE STATE OF
CALIFORNIA. TO DATE, THE
LEGISLATURE AND THE GOVERNOR HAS
CREATED SEVERAL PROGRAMS DURING
THE PANDEMIC TO HELP SMALL
BUSINESSES WITH HIRING TAX
CREDITS THAT I CARRIED IN 2020.
THIS BILL JUST WORKS UPON MUCH
OF THE WORK THAT'S BEEN DONE AND
JUMP START. HELP JUMPSTART OUR
ECONOMIC FUTURE BY INVESTING
$375 MILLION IN SMALL BUSINESS
HIRING. BUSINESSES LOCATED
SPECIFICALLY AND UNDERSERVED
COMMUNITIES. UH MILLIONS OF
ENTIRELY NEW PRIVATE CAPITAL
WILL BE INVESTED INTO
CALIFORNIA'S MOST ECONOMICALLY
DISADVANTAGED SMALL BUSINESSES
AND COMMUNITIES. UH WITHIN THE
1ST 24 MONTHS. 70% OF THAT WILL
HAPPEN WITHIN THE 1ST 12 MONTHS
AND WITH NO STATE TAX DOLLARS
GOING OUT THE DOOR FOR THOSE
FIRST TWO YEARS AND THE
INVESTMENT WHEN ABLE, SMALL
BUSINESSES TO NOT ONLY SURVIVE
BUT GROW AS WELL. AH JUMP START
AT ACHIEVES THIS BY CREATING A
PUBLIC PRIVATE PARTNERSHIP
FUNDED BY $300 MILLION TEXT
CREDIT SPREAD OVER FOUR YEARS OF
FISCAL FOR FISCAL YEARS. THE
PROGRAM WILL BE OVERSEEN BY OUR
GREAT TREASURER, UH, FIONA MALL
WHO IS THE SPONSOR OF THIS
MEASURE AND WHO'S WORKED CLOSELY
WITH US TO DEVELOP SAFEGUARDS
FOR THIS PROGRAM TO ENSURE THAT
IT'S FEAR AND IT'S IMPACTFUL
ELIGIBLE AND INVESTMENT AREAS
HAVE THE HIGHEST POVERTY RATE.
AND THE HIGHEST UNEMPLOYMENT
RATES AS WELL AS THE LOWEST
MEDIAN INCOME. DISPUTE ALSO
FOCUS ON OUTREACH TO MINORITY
WOMEN OWNED DISABLED VETERANS
AND LGBT OWNED BUSINESSES. THIS
IS CRITICAL BECAUSE TRADITIONAL
FINANCIAL INSTITUTIONS HAVE
HISTORICALLY. AH IGNORED
MINORITY OWNED AND WOMEN OWNED
BUSINESSES, UH, THAT SERVE
DISADVANTAGED COMMUNITIES. THESE
BUSINESSES ARE NOT SEEKING BANK
LOANS ARE VENTURE CAPITAL
FUNDING. THIS PROGRAM FILLS THE
GAP. I SHOULD SAY OR NOT
RECEIVING THIS INVESTMENT WILL
BE IN THE FORM OF LOANS. WOULD
CAPPED INTEREST RATES WELL BELOW
MARKET RATE. OR MINORITY EQUITY
INVESTMENTS, ALLOWING THESE
FIRMS TO WORK WITH THESE
BUSINESSES AND HELP THEM GROW.
777. WITH THIS BILL, I SHOULD
SAY THAT THE STATE CAN EXPECT TO
GET BACK AND OVERALL RETURN ON
INVESTMENT OF $4 FOR EVERY $1
INVESTED OVER 10 YEAR PERIOD.
THE MAJORITY OF THE MONEY
GENERATED BY SP 777 WILL BE
GOING BACK TO THE STATE'S
GENERAL FUND, ENABLING THE STATE
TO INVEST THAT MONEY INTO K
THROUGH 12. SCHOOLS AND
COMMUNITY COLLEGES JUMPSTART
EQUAL AND POWER, SMALL
BUSINESSES TO GROW AND THRIVE.
THAT IS THE KEY IF WE WANT TO
MOVE MORE JUST AND EQUITABLE
ECONOMY AND INVEST IN THESE
COMMUNITIES THAN WE HAD BEFORE
THE PANDEMIC, THIS PROGRAM WILL
BE EFFICIENT. IN ITS USE OF
STATE FUNDS AS WELL AS EFFECTIVE
AND ITS IMPACT AND UNOBSERVED.
BUSINESSES AND COMMUNITIES. JUST
BILL HAS RECEIVED BIPARTISAN
SUPPORT AND IS SUPPORTED BY THE
CALIFORNIA AFRICAN AMERICAN
CHAMBER OF COMMERCE TO ASIAN
PACIFIC. CHAMBER OF COMMERCE,
THE HISPANIC CHAMBER OF COMMERCE
AND THE NATIONAL ASSOCIATION OF
WOMEN BUSINESS OWNERS. JUST TO
NAME A FEW TESTIFYING TODAY AND
SUPPORT AS I STATED AS OUR STATE
TREASURER, FIONA MA, AS WELL AS
SANDRA MOORE, CHIEF IMPACT
OFFICER FOR ADVANTAGE CAPITAL
AND WE ARE ALSO HAVE WITNESSES
FOR TECHNICAL QUESTIONS. SO
THANK YOU. THANK YOU VERY MUCH,
MADAM CHAIR AND I'M NOT GOING TO
REPEAT. COMMENTS MADE BY THE
SENATOR JUST TO SAY THAT I
STARTED MY PUBLIC SERVICE CAREER
AS THE PRESIDENT OF THE ASIAN
BUSINESS ASSOCIATION, SO REALLY
FOCUSED ON GETTING MORE
CONTRACTING OPPORTUNITIES FOR
WOMEN AND MINORITY OWNED SMALL
BUSINESSES. SO THIS IS STILL A
PASSION OF MINE. AND THAT'S WHY
I AM A SPONSOR OF THIS BILL AND
VERY HAPPY TO TAKE THIS PROGRAM
UNDER, UM UNDER MY OFFICE IF
THIS PASSES TO THE GOVERNORS UM
PASSES UP THROUGH THE GOVERNOR'S
DESK, BUT WE KNOW THAT MANY HAVE
BEEN LEFT OUT OF THE EXISTING
FEDERAL PROGRAMS LIKE THE
PAYCHECK PROTECTION PROGRAM.
WE'RE ONLY 12% OF OUR BLACK AND
LATINO OWNED BUSINESSES RECEIVE
THE FULL AMOUNT. THEY REQUESTED
FROM P P P LOANS AND ONLY 5% OF
OUR WOMEN ON BUSINESSES RECEIVED
TPP LOANS, ACCORDING TO THE
CALIFORNIA ASSOCIATION FOR MICRO
ENTERPRISE OPPORTUNITIES. HENCE
WHY I'VE BEEN WORKING WITH
SENATOR BRADFORD OVER THE PAST
TWO YEARS TO FIGURE OUT HOW WE
CAN PROVIDE THE NEEDED
ASSISTANCE. CAPITAL LOANS EQUITY
INFUSION FOR MANY OF THESE SMALL
BUSINESSES WHO JUST DIDN'T
ACCESS. THESE LOANS ARE A STRONG
SAFEGUARDS THAT WILL PROTECT THE
STATE'S INVESTMENT AND ENSURE
ACCOUNTABILITY FROM THE
PROGRAM'S PARTICIPANTS,
INCLUDING LANGUAGE THAT
EXPRESSLY PREVENTS ANY INCENTIVE
INVESTORS IN THE FUNDS FROM
OBTAINING ANY POTENTIAL DOUBLE
TAX BENEFIT. IN LINE WITH
COMMITTEE PRESIDENT DELAYED TAX
CREDITS THAT CAN BE RECAPTURED
FOR THE FUNDS NONCOMPLIANCE.
STRICT PERFORMANCE REQUIREMENTS
BY THE FEDS REQUIREMENT THAT ALL
CAPITAL RETURN TO THE FUNDS WILL
BE REINVESTED. INTO NEW
QUALIFYING SMALL BUSINESSES FOR
THE LIFE OF THE PROGRAM. ANNUAL
DETAILED REPORTING REQUIREMENTS
OF THE STATE AND THE LEGISLATURE
ON INVESTMENTS MADE BY THE FUNDS
, WHICH COMPLY WITH THIS
COMMITTEE'S STANDING POLICY ON
ALL TAX CREDIT PROPOSALS.
MEETING SECTION 41 REQUIREMENTS.
THERE WAS A SUNSET DATE AND
LIMITED CARRY FORWARD WINDOW OF
TAX CREDITS IN COMPLIANCE WITH
THIS COMMITTEE'S FIVE YEAR TAX
CREDIT POLICY. SO THANK YOU VERY
MUCH. COMMITTEE MEMBERS FOR YOUR
CONSIDERATION OF THIS BILL.
THANK YOU. GOOD AFTERNOON, MADAM
CHAIR AND MEMBERS. THANK YOU FOR
ALLOWING ME TO TESTIFY AND
SUPPORT OF CALIFORNIA JUMPSTART
SENATE BILL 777. I'M STANDING
MORE I'M A PARTNER WITH AND
CHIEF IMPACT OFFICER AND IT
MANAGED PACKED ADVANTAGE CAPITAL
WERE AN IMPACT GROWTH FIRM. UM I
AM HERE REPRESENTING THE 300 ARE
MORE SIMILAR IMPACT INVESTORS
WHO ARE ACTIVELY WORKING TO
DRIVE CAPITAL INTO SMALL
BUSINESSES IN THIS STATE, I
BRING TOGETHER SOCIAL AND
ECONOMIC ANALYSIS, 30 YEARS OF
ADVANTAGE CAPITAL AND ME AND
MORE THAN THREE TIMES THAT FROM
THE INDUSTRY AT LARGE TO BRIEF
YOU ON THE TOTALITY OF THE
RETURN THAT WILL COME BACK TO
THIS STATE TO THESE BUSINESSES
TO THESE HOUSEHOLDS. AS A RESULT
OF THIS INVENT INCENTIVIZED
IMPACT INVESTING. I UNDERSTAND
THE PRESS AT TIMES, SO I WANT TO
MAKE JUST FIVE POINTS. THE FIRST
IS AND THE SENATOR HAS MADE IT
AND IT'S AND SO HAS THE STATE
TREASURER. BUT I GOT TO
REITERATE THIS. THIS
INCENTIVIZED INVESTING WILL
RETURN. UM $4 FOR EVERYONE.
STATE DOLLAR WHILE GROWING
BUSINESSES THAT'S AN ADDITIONAL
$1 BILLION TO USE ON THE OTHER
SERVICES THAT ARE SO NEEDED IN
THIS STATE. THIS TOOL IS NEEDED
TO LEVEL A HUMP THAT SMALL
BUSINESSES HAVE NOT BEEN ABLE TO
GET OVER IN THE FINANCING SECTOR
. THEY SIMPLY HAVE NOT BEEN ABLE
TO GET OVER IT. IT'S THE BEST
TOOL BECAUSE IT BRINGS TOGETHER
WITH THE STATE DOES BEST WITH
WHAT THE PRIVATE SECTOR DOES
BEST. THE PRIVATE SECTOR HERE
TAKES ALL THE EARLY RISK. THEY
RAISED THE REQUIRED CAPITAL UP
FRONT. THEY MAKE ALL OF THE
INVESTMENTS WHEN THE WITHIN THE
1ST 24 MONTHS, NOT A DIME OF
STATE MONEY IS EXTRACTED UNTIL
THE THIRD YEAR. YOU WILL SEE THE
OUTCOMES BEFORE THERE'S A DOLLAR
OF STATE MONEY SPENT. THIS TOOL
INCENTIVIZES THE MULTIPLIER
EFFECT THE VIRTUOUS CYCLE OF
CAPITAL THAT HAPPENS EVERY DAY
IN SILICON VALLEY, BUT NEVER
REACHES THE DISTRESSED
COMMUNITIES THE RELIEF
COMMUNITIES IDENTIFIED IN THIS
ACT. WHAT DOES THAT MEAN? IT
MEANS THE PRIVATE INVESTORS WILL
BRING IN BANKS, AND THEY'LL
BRING IN NEW INVESTORS. WE DO IT
EVERY DAY BECAUSE SUCCESS
BECAUSE THE PRIVATE SECTOR WANTS
TO HAVE OTHER INVESTMENT
PARTNERS THAT ARE GOING TO MAKE
SURE SUCCESS IS POSSIBLE FOR
THEM ALL. IT WILL BRING IN
INVESTORS WHO WILL PROVIDE
MANAGEMENT SUPPORT BECAUSE THE
PRIVATE SECTOR INVESTORS DON'T
GET ANYTHING UNDER THIS PROGRAM
AND LIST THOSE SMALL BUSINESSES
SUCCEED. THEY ARE INCENTIVIZED
TO PUT THEIR SHOULDER TO THE
WHEEL. AND FINALLY, AS A RESULT,
THERE IS THE FOLLOW ON CAPITOL.
THAT WILL GO TO THESE BUSINESSES
AS THEY REGULARIZED THEIR
RELATIONSHIPS WITH THESE NEW
BANKS AND THESE NEW INVESTORS,
THE LONG TERM GOAL TO NOT HAVE
US HAVE TO DO THIS 50 YEARS FROM
NOW. THIS HIGHLY TARGETED
PROGRAM IS A VARIATION OF PROVEN
PROGRAMS FROM OTHER STATES.
NEVADA LOS ANGELES. I'M SORRY,
LOUISIANA, NEBRASKA. KENTUCKY
THEY SEEM TO BE VERY DIFFERENT
STATES THAN CALIFORNIA. THEY ARE
BUT THE PROBLEM BEING ATTACKED
IS THE SAME. THEY'RE DIFFERENT.
BUT THE TARGETED COMMUNITIES AND
BUSINESSES AND THESE PLACES HAVE
ALSO BEEN LOCKED OUT UP ACCESS
TO GROWTH CAPITAL. SO I WILL END
WHERE I STARTED. THE JUMPSTART
PROGRAM WILL DELIVER MONEY FOR
GROWTH. TO THE SMALL BUSINESSES
AND DISADVANTAGED BUSINESSES IN
DISTRESSED AREAS, RETURNING 4 TO
1. FOR THE STATE. THE PROGRAM
CREATES THE OPPORTUNITY. FIRST
EVER. TWO FOR THE STATE TO GAIN
MORE REWARD FROM ITS INVESTMENT
THAT IS TO ATTAIN ITS OWN DOT
DOUBLE BOTTOM LINE. $1 BILLION
IN NEW REVENUE AND BUSINESS
GROWTH, WHERE THERE HAS
HISTORICALLY BEEN LITTLE TO
NONE. I THANK YOU AND WE ASK FOR
YOUR SUPPORT. THANK YOU. DO WE
HAVE OTHER SPEAKERS IN SUPPORT?
MADAM CHAIR AND MEMBERS OF THE
COMMITTEE WHEN KELLY ON BEHALF
OF STONEHENGE CAPITAL COMPANY
AND SUPPORTED THE BILL. MADAM
CHAIR AND COMMITTEE MEMBERS AND
SHINJI PRINCE WITH ENHANCED
CAPITAL AND STRONG SUPPORT OF
THE BILL. MADAM CHAIR AND
MEMBERS. MAY ALASKA CALIFORNIA
POLICY SOLUTIONS ON BEHALF OF
THE CALIFORNIA AFRICAN AMERICAN
CHAMBER OF COMMERCE AND STRONG
SUPPORT. KEVIN PEDRETTI,
REPRESENTING N F I B AND SUPPORT. AFTERNOON MADAM CHAIR MEMBERS,
DAVID NELSON WITH THE CALIFORNIA
ASIAN PACIFIC CHAMBER OF
COMMERCE, REPRESENTING THE OVER
600,000 ÁP SMALL BUSINESS OWNED
SMALL BUSINESSES IN STRONG
SUPPORT. BRANDON APP
REPRESENTING CALIFORNIA TAX
REFORM ASSOCIATION, AND WE
OPPOSE. DID YOU WANT TO SPEAK
FOR LONGER? BECAUSE ARE YOU THE
OPPOSITION WITNESS? THAT WAS IT.
YEAH. OH, WELCOME IN TURN. WELL
ARE THERE ANY PRINCIPLE
WITNESSES IN OPPOSITION? ALL
RIGHT, WELL, WE'LL WE'LL TAKE
THE INTERN AS THE PRINCIPAL
WITNESS, THEN. DO WE HAVE
QUESTIONS FROM THE COMMITTEE?
ASSEMBLYMEMBER'S WORK. UM. DO WE
KNOW HOW MUCH THESE INSTITUTIONS
CURRENTLY INVEST IN BUSINESSES
OF THESE TYPE? THIS TYPE. CAN I
SAY YES. BILLIONS AND NO AS TO
SPECIFICITY. I CAN SPEAK BECAUSE
IT'S A 300 GROUP ENTITY. IF I
SPEAK FOR ADVANTAGE, CAPITAL I
CAN SAY FOR THE LAST 30 YEARS.
WE HAVE INVESTED $3.5 BILLION IN
BUSINESS IS EXACTLY LIKE THIS.
AND MOST OF MOST OF THAT, IN
TRANCHES OF 2 TO $3 BILLION. I'M
SORRY, 2 TO $3 MILLION. THESE
ARE VERY SMALL BUSINESSES WHO
CAN ONLY TAKE THIS CAPITAL IN
SMALL BITES. YEAH SO ONE OF MY
CONCERNS WOULD BE THAT MOST OF
THIS MONEY COULD JUST GO TO
PLATE TO PLACES THAT HAVE
ALREADY BEEN DOING THIS
INVESTMENT. SO IT'S A REWARD
RATHER THAN A INCENTIVE. WE
MIGHT NOT GET ANY NEW LOANS FROM
THIS. NO SIR, THAT WOULD. THAT
WOULD NOT BE THE CASE HERE. UM
BECAUSE OF THE TIGHT. LANGUAGE
THAT THE SENATOR HAS WORKED TO
MAKE CERTAIN IS IN THE BILL AND
THE TYPE PROTECTIONS THAT THE
TREASURER HAS WORKED TO MAKE
CERTAIN IN THE BILLS. THIS THIS
HAS GOT TO GO TO CALIFORNIA
BUSINESSES. AND IDENTIFIED AND
SPECIFIED DISTRESSED AREAS,
AREAS THAT HAVE A NUMBER OF
THINGS BUT HIGH RATES OF
UNEMPLOYMENT AND HIGH RATES OF
DISTRESS. AND THOSE BUSINESSES
HAVE GOT TO BE ON OF A SMALL
SIZE 200 EMPLOYEES ARE OR OR
LESS, AND THEY'VE GOT TO HAVE
$10 MILLION OR LESS IN REVENUE
AND THEIR DOCUMENTS, THEIR THEIR
FINANCIALS HAVE TO ALL BE LAID
OUT. YOU WILL BE ABLE TO SEE
WHETHER THEY'VE HAD INVESTMENT
BEFORE AND MOST OF THEM WILL NOT
HAVE HAD BECAUSE THIS IS WHERE
THIS IS THE HUMP THAT CANNOT GET
OVER. AND IF THE CHIEF IMPACT
OFFICER, I CAN TELL YOU THAT
WE'VE GOTTEN VERY, VERY GOOD. AT
TRACKING. IF YOU ASK ME, I CAN'T
LOOK INTO 300 OTHER PORTFOLIOS.
BUT I CAN TELL YOU INSIDE OF OUR
PORTFOLIO ALMOST INVESTMENT BY
INVESTMENT WITH WHERE THE
BUSINESSES AND WHAT CHANGED AS A
RESULT OF THE INVESTMENT. SO
THERE IS NOT GOING TO BE ANY
FLIMFLAMTHAT CAN HAPPEN WITH
THIS PARTICULAR BILL. YEAH BUT
YOU REALLY HAVEN'T ANSWERED MY
QUESTION. IF YOU'RE DOING LOANS
LIKE THIS ALREADY. THEN THIS IS
GOING TO BE REAL WARD RATHER
THAN INCENTIVE. NO, SIR, BECAUSE
WE'RE NOT DOING THEM IN THE IN
THE PLACES AND AT THE AT THE AT
THE AT THE DEPTH THAT THEY NEED.
THERE'S MUCH MORE NEED THAN
ANYTHING THAT WE'RE DOING RIGHT
NOW. OKAY SO HOW MUCH IS DO YOU
KNOW HOW MUCH IS BEING DONE
RIGHT NOW? AND AGAIN IN
INCENTIVES SHOULD BE IF IT
ATTACKS. INCENTIVES SHOULD BE AN
INCENTIVE RATHER THAN A REWARD,
AND I AM CONCERNED ABOUT THAT. I
AM GOING TO. I DO NOT HAVE A
PRECISE ANSWER AS TO HOW MUCH IS
CURRENTLY BEING INVESTED IN
CALIFORNIA FROM OUR FIRMS. NOW
I'M GOING TO ASK SOMEONE TO GIVE
US SOME TECHNICAL ASSISTANCE.
BUT I WILL SAY THIS THERE'S NO
REWARD. THERE IS AN INCENTIVE
AND IF YOU DO YOUR JOB, THEN YOU
GET PAID FOR DOING IT. OKAY. UH,
SECOND QUESTION. UM. WHY DO IT
THIS WAY THAN HAVE THE STATE DO
IT? THAT ONE. I AM PREPARED FOR
SER. WANT ME TO CONTINUE CENTER,
OKAY? SO THERE ARE FOUR PRIMARY
REASONS. UM YOU KNOW, THE STATE
CAN DO ANYTHING AND THE STATE OF
CALIFORNIA IS ACCOMPLISHED. NO
DOUBT. HOWEVER, IN THIS CASE BUT
THE STATE DOES IT. THE FIRST
THING IS, IT WILL HAVE TO PUT UP
ALL THE MONEY AT FIRST HERE.
UNDER UH, 777 STATE DONE. PUT A
DIME UP UNTIL YEAR THREE.
SECONDLY IF THE STATE DOES IT,
IT DOESN'T BRING THE BENEFIT OF
BRINGING IN NEW POTENTIAL
INVESTORS AND NEW BANKS TO NEW
COMMUNITIES THAT THEY HAVE
HISTORICALLY IGNORED. IT'S NOT A
KNOCK ON BANKS. IT'S JUST THAT
THEY'RE NOT SET UP. TO BE ABLE
TO TAKE THE KIND OF RISK THAT
YOU HAVE TO TAKE WHEN YOU REALLY
WANT TO GROW THESE BUSINESSES
THAT THIRD IS, IF THE STATE
DOESN'T THE STATE'S GONNA WIND
UP PAYING 100% AND UNDER THE
CREDIT THE PRIVATE SECTOR, THE
STATE'S ONLY GOING TO PAY 80
CENTS. SO THAT'S THAT'S JUST
PURE MATH. IT'S NOT. IT'S NOT
EFFICIENT AND THEN LAST, BUT NOT
LEAST, IT IS NOT ONLY MONEY THAT
THESE SMALL BUSINESSES NEED THEY
NEED MANAGEMENT SUPPORT. AND
WHEN THE PRIVATE SECTOR COMES IN
AND SAYS, I GOTTA PUT IN 20% OF
THE MONEY TO MAKE THIS BUSINESS
GROW, THEY'RE GOING TO PUT THE
SHOULDER TO THE WHEEL. THEY'RE
GOING TO GET ON. THEY'RE GOING
TO GET ON BOARD ARE GOING TO
HELP SMALL COMPANIES WHO HAVE
NEVER HAD FINANCIALS. GET
SOMEBODY TO DO THE FINANCIALS.
THEY'RE GONNA HELP THESE
COMPANIES WITH MANAGEMENT
SUPPORT THAT THEY NEED TO TAKE
MONEY AND MANAGEMENT SUPPORT.
AND REALLY GROW. WELL I THINK
IT'S IMPORTANT BEFORE WE TAKE A
VOTE ON THIS BILL THAT WE KNOW
THAT WE'RE ACTUALLY
INCENTIVIZING. AH NEW INVESTMENT
AS OPPOSED TO REWARDING CURRENT
INVESTMENT. IF THAT'S THE POINT.
YES, SIR. THANK YOU.
ASSEMBLYMEMBER'S GRACE. THANK
YOU, SENATOR FOR BRINGING THIS
BILL FOR A COUPLE OF QUESTIONS.
ONE. UM IN LOOKING AT THE
PROGRAM HERE. IT SEEMS LIKE WE
SEE VERY SIMILAR LEGISLATION.
EACH SESSION COME BEFORE US
TRYING TO MAKE THESE INVESTMENTS
AND SET UP THESE TAX STRUCTURES
AND IT STRIKES ME THAT IN MANY
CASES, IT SEEMS LIKE THE
REQUIREMENTS ARE EITHER TOO
ONEROUS IN A SENSE FOR SMALL
BUSINESS. TAKE ADVANTAGE OF YOU
SEE THAT AFFORDABLE HOUSING ALL
THE TIME. YOU DON'T SEE SMALL
BUILDERS BUILDING AFFORDABLE
HOUSING PROJECTS, DESPITE THE
FACT THAT THERE'S ALL OF THESE
BENEFITS AVAILABLE UM. WHAT IS
UNIQUE, I GUESS ABOUT THIS
PROGRAM, AND I'VE READ THROUGH A
LITTLE BIT TRYING TO UNDERSTAND
ABOUT WHAT'S UNIQUE ABOUT THIS
PROGRAM, UH, THAT IT'S GOING TO
BE EFFECTIVE. THAT'S QUESTION
ONE AND QUESTION TO, UM AND
SENATOR BRADFORD IS CERTAINLY
HEARD ME SAY THIS MANY TIMES,
BUT WE OFTENTIMES TALK ABOUT
HELPING, UH, CERTAIN CATEGORIES
OF BUSINESS OWNERS, AND SOMEHOW
THOSE CATEGORIES NEVER END UP IN
THE CENTRAL VALLEY. THEY ALL
LIVE IN L, A AND SAN FRANCISCO
AND, UM WHAT? WHAT DO WE HAVE?
YOU KNOW, IN THIS PARTICULAR
PROPOSAL THAT WILL BENEFIT MY
REGIONAL STATE NOW CERTAINLY, UH
, YOU KNOW, HAVING MS MEAGHER
WHO GIVES ME SOME CONFIDENCE
BECAUSE SHE SPENDS A LOT OF TIME
IN MY NECK OF THE WOODS AND A
LOT OF TIMES MY CONSTITUENTS,
BUT I WOULD BE REMISS NOT TAKE
THE OPPORTUNITY TO ASK. WHAT ARE
WE DOING SPECIFIC TO ALL REGIONS
OF THE STATE. WELL I THINK THIS
CENSUS TRACT GUIDELINES WILL
INCLUDE ALL THOSE WHO FALL IN
THERE. IT'S STATE SENTENCE
TRACKS WITH POVERTY RATES
GREATER THAN 30% OR CENSUS TRACK
THAT HAS A MEETING. UH FAMILY
INCOME OF 60% OR LESS OF
STATEWIDE. HART COUNTY MEDIAN
INCOME SO THAT IN ITSELF DOESN'T
PUT BORDERS ON WHERE THIS MONEY
GOES. THAT CLEARLY IDENTIFIES
THOSE COMMUNITIES SO IT COULD
VERY WELL BE IN THE CENTRAL
VALLEY THAT THEY, YOU KNOW, FALL
IN THAT CATEGORY, AS WELL AS LOS
ANGELES OR ANYWHERE IN THE STATE
OF CALIFORNIA, SO I THINK
THEY'RE IN ITSELF. ALSO IT WANTS
TO, UH A SIMILAR COURT TALKED
ABOUT THE INVESTMENTS ARE BEING
MADE. THEY ARE BEING MADE BY
MANY OF THESE ENTITIES, BUT NOT
INTO THE BUSINESSES THAT WE'RE
TRYING TO TARGET. THE BUSINESSES
THAT WERE IGNORED DURING THE
PANDEMIC THAT DIDN'T GET TO PEE
PEE PEE LOANS. THESE ARE THE
FOLKS THAT WERE TRYING TO ASSIST
. THOSE BUSINESSES HAVE BEEN
MARGINALIZING HISTORICALLY
IGNORED THROUGH OUR TRADITIONAL
FINANCIAL INSTITUTIONS. SO THIS
IS WHAT WE'RE HOPING TO CHANGE
AS WELL. SO I HOPE IT WOULD
INCLUDE WITHOUT A DOUBT, THE
CENTRAL VALLEY AND I JUST WANT
TO ADD. WE TALK ABOUT AFFORDABLE
HOUSING DEVELOPERS. WE DID
CREATE A BY PARK ALLOCATION THIS
YEAR, HOPING TO GET MORE, UM, BY
PARK DEVELOPERS TO COME FORWARD.
AND THE TWO ISSUES THAT COME UP
IS ACCESS TO CAPITAL. AND THEN
ONCE THEY ACCESS CAPITAL
SOMETIMES THEY NEED GAP
FINANCING. AND SO THIS IS WHAT
THIS PROGRAM IS DOING SIMILAR TO
AFFORDABLE HOUSING. UTILIZING
AND LEVERAGING THE PRIVATE
SECTOR TO PROVIDE EITHER THE GAP
FINANCING OR THE INITIAL ACCESS
TO CAPITAL. SO, UM, IT'S KIND OF
SIMILAR TO THE PROGRAM. AND I
GUESS THE QUESTION IS, HOW DO WE
MAKE SURE THAT EQUITABLY
DISPERSED AROUND THE STATE RIGHT
? UNLESS YOU HAVE ALLOCATION
POOLS SPECIFICALLY TARGETED TO
GEOGRAPHIC OR YOU KNOW OTHER
GROUPS. I THINK THAT'S HOW WE'VE
BEEN ABLE TO. BETTER ALLOCATE
OUR BONDS AND TAX CREDITS FOR
AFFORDABLE HOUSING. REMEMBER
GREAT, I WOULD ADD JUST A COUPLE
OF THINGS TO THE SENATOR AND TO
THE TREASURER. THIS IS GROWTH
CAPITAL. WHICH SPEAKS TO THE
TREASURER'S LAST POINT. BUT
RIGHT NOW, THE WAY THIS ECONOMY
IS HEADING IS GOING TO ALSO BE
STABILIZING CAPITAL BUT ITS
GROWTH CAPITAL, AND IT'S
DESIGNED TO BE FLEXIBLE CAPITAL.
AND THAT JUST DON'T HAVE FOR
BUSINESSES THIS SIZE. THEY ALL
WANT MANY OF THEM WANTED THE
SAME PLACE. THEY HIT A WALL.
THEY HAVE UM LEVERAGED AS MUCH
AS THEY'VE GOT. THEY CAN'T PUT
ANYMORE IN THE HOUSE. THEY DON'T
HAVE FRIENDS AND FANS, FAMILY
MONEY AND THEY HAVE MADE WOULD
HAVE THE OPPORTUNITY TO GROW.
BUT WHERE DOES THE CAST CAPITAL
COME FROM? HAS TO BE FLEXIBLE.
ANOTHER REASON, SIR. WHY THIS
KIND OF TOOL IS NECESSARY. THE
OTHER THING THAT DISTINGUISHES
THIS BILL IS, UM, THAT YOU'RE
GOING TO GENERATE THIS FOLLOW ON
CAPITOL. WHICH IS SO VERY
IMPORTANT BECAUSE SO MANY OF
THESE SMALL BUSINESSES DO NOT
HAVE A HEALTHY, REASONABLE
BANKING RELATIONSHIP IF THEY
HAVE A BANKING RELATIONSHIP MANY
TIMES ITS USE SEROUS. THEY'RE
THEY'RE THEY'RE THEY'RE PAYING
40 50. JUST TO GET A LITTLE
MONEY TO KEEP THEM GOING. THIS
INTRODUCES THEM TO THE BANKS
THAT WILL COME IN WITH AN
ADVANTAGE CAPITAL ORANGE
ENHANCED OR ORWITH OUR C, D E
F. I S WHO ARE IN DEEP SUPPORT
OF THIS AND THIS WILL THEN GIVE
THEM AN OPPORTUNITY MANY TIMES
THE FIRST TIME OPPORTUNITY TO
HAVE A BANK THAT GETS TO KNOW
THEM, AND THAT'S HOW YOU WIND UP
HAVING A BUSINESS RELATIONSHIP
WITH THE BANK. AND THAT
FOLLOWING CAPITAL AND THE
FOLLOWING CAPITAL NUMBER
GENERALLY FOR ADVANTAGE, AND IT
MIRRORS WERE SUCCESSFUL, BUT IT
MIRRORS A LOT OF WHAT GOES ON IN
THE INDUSTRY IS SIX. 10. 12 TO 1
. ONCE THOSE BUSINESSES HAPPEN
UNTIL YOU JUST ONE QUICK STORY,
AND THEN I'M GOING TO SHUT UP.
YOU CAN TELL HOW I FEEL ABOUT
THIS. UM I WANT YOU TO JUST TAKE
A LOOK AT ONE BUSINESS IN, UH,
NEBRASKA. OMAHA NEBRASKA ON THE
NORTH END OF THE COMPANY'S NORTH
AND TELESERVICES IS CALLED THE
NORTH END IS THE HISTORICALLY
BLACK AREA. TOTALLY UN INVESTED
. ONE AFRICAN AMERICAN WOMAN
DECIDED TO TAKE A CHANCE THERE.
SHE WORKED WITH THE STATE, WHICH
IS WHY THIS IS A GREAT KIND OF
PARTNERSHIP. SHE BUILT A CONTACT
CENTER BUSINESS WITH THE STATE
OUT OF ONE OF THESE INCUBATORS.
SHE WANTED TO BUY IT ON OUR OWN,
BECAUSE SHE FIGURED SHE COULD
GROW IT AND SHE COULD PUT PEOPLE
TO WORK FROM THAT PART OF THE
COMMUNITY. SEVEN BANKS TURNED
HER DOWN, SEVEN BANKS TURNED HER
DOWN. WE HAD A FLEXIBLE TOOL
LIKE THIS ONE. WE WERE ABLE TO
GIVE HER A FLEXIBLE LOAN. NO
INTEREST FOR THE 1ST 18 MONTHS
SO SHE COULD GET HER FEET UNDER
HER AND SO FORTH, AND SO ON.
QUICK STORY IS SHE STARTED WITH
80 EMPLOYEES PAID US OFF IN LESS
THAN TWO YEARS. SHE GOT THREE
TIMES FOUR TIMES FIVE TIMES WHAT
SHE NEEDED AND FOLLOW ON CAPITOL
WITH EACH ROUND AND SHE'S NOW UP
TO 600 EMPLOYEES. SHE'S THE
FIRST AFRICAN AMERICAN PRESIDENT
OF THE CHAMBER IN THE CITY OF
OMAHA. AW, SHE'S ON THE INC.
FIVE THOUSANDS FASTEST GROWING
BUSINESSES IN THE COUNTRY AND
THAT'S IN FIVE YEARS. WELL
THAT'S CERTAINLY A GOOD STORY. I
HOPE WE CAN REPLICATE THAT. YOU
CAN. I KNOW YOU CAN. THANKS FOR
THANK YOU FOR YOUR ANSWERS, AND
I THINK YOU CAN ALSO REFINANCE
HIGHER DEBT. YOU KNOW, SOME OF
THESE BUSINESSES HAVE TAKEN
HIGHER, LET DEBT AND SO WITH
THESE IMPACT INVESTORS AND THEY
CAN ACCESS LOWER INTEREST RATES.
RIGHT. SO, UM. YOU KNOW THIS?
IT'S VERY LAUDABLE GOAL. WE KNOW
THAT I'M JUST TRYING TO
UNDERSTAND BECAUSE THERE'S IT'S
SORT OF COMPLICATED ALSO. SO UM,
ISN'T IT? BUT I THINK YOU
ANSWERED THIS. BUT WOULDN'T IT
BE SIMPLER FOR THE STATE TO
INVEST? UH DIRECTLY AND THEN
ALSO, IF THERE IS A THESE
PROPERTIES ARE. ARE USED AS
COLLATERAL RIGHT FOR THE LOAN.
SO IF YOU END UP WITH A ECONOMIC
DOWNTURN, UM ARE, AREN'T WE,
THIS KIND OF VULNERABLE SMALL
BUSINESSES, AREN'T WE RISKING UH
, AREN'T WE RISKING THE PROPERTY
ITSELF TO WHEN WE GET INTO A
SCHEME LIKE LET ME ANSWER THAT
QUESTION. FIRST WE TRY EVERY WAY
POSSIBLE TO NOT TAKE PRIMARY, UM
PERSONAL REAL ESTATE AS
COLLATERAL. NOW. IT DOESN'T
HAPPEN SOMETIMES. YES BUT THAT'S
WHAT WE WORK AGAINST THAT THE
FLEXIBILITY WE HAVE A WE HAVE
THE OPPORTUNITY WITH THIS TOOL
BECAUSE THE STATE'S GONNA ALLOW
US TO TAKE MORE RISK. WE HAVE
THE OPPORTUNITY WITH THIS RULE
TO OFFER A BUNCH OF WAYS TO
AVOID TAKING THAT KIND OF
COLLATERAL. HOW ABOUT TWO YEARS
OF INTEREST FREE? SO YOU DON'T
HAVE ANY, YOU KNOW, YOU DON'T
HAVE ANY CARRYING COST. YOU GET
A CHANCE TO GET YOUR FEET UNDER
YOU. HOW ABOUT UNDER THIS? THIS
PARTICULAR BILL YOU CAN PUT IN
SOME EQUITY, PRIVATE PRIVATE
EQUITY FIRMS. GUESS WHAT?
THEY'VE GOT EQUITY. THEY CAN'T
TAKE A MAJORITY INTEREST. NEVER
THEY CAN ONLY BE A MINORITY.
UNDER THIS BILL. THIS IS THE
PROTECTIONS THAT HAVE BUILT IN,
BUT THEY CAN PUT A LITTLE MONEY
IN WHICH THEN AND THEY CAN PUT
THEIR BALANCE SHEET UP, WHICH
THEN ALLOWS THAT BUSINESS TO
GROW SO WE TRY NEVER TO TAKE
PRIMARY PRINCIPLE, REAL ESTATE.
AND THEN THE OTHER THING IS I
CAN'T ANSWER. MADAM CHAIR FOR
WHETHER IT WOULD BE EASIER. I'M
NOT GOOD FOR THE STATE TO DO,
AND I'M NOT GOING TO TRY THAT
ONE. I WAS JUST TALKING ABOUT
NINE, NOT A LOAN PROGRAM, BUT A
GRANT PROGRAM. WITH THE
CHALLENGE WITH A GRANT PROGRAM.
WE'VE HAD MANY OF THEM AND THEY
HAVEN'T BEEN ENOUGH. AND THEY
HAVEN'T BROUGHT THE CAPITAL IN
THE WAY THAT THEY NEED IT.
PARTICULARLY WITH REGARD TO
GROWTH CAPITAL. WITH GROWTH
CAPITAL. IT NEEDS TO BE FLEXIBLE
CAPITAL. IT NEEDS TO BE WORKING
CAPITAL. MAYBE THEY NEED
$500,000 RIGHT NOW, AND THEN
THEY GET A GROWTH SPURT. AND
THEN THE NEXT 18 MONTHS THEY
NEED $750,000 WORTH OF CAPITAL
AND THEN THEY GET A GROSSBERG
AND BEFORE YOU KNOW IT, THEY
NEED $2 MILLION WORTH OF CAPITAL
STATE GRANT PROGRAMS ARE NOT
DESIGNED TO DO THAT, BUT THAT'S
WHAT THE PRIVATE SECTOR DOES
EVERY DAY. SO WHAT IS THE WHAT
WOULD BE, UM, THE INTEREST RATE
THAT THESE CORPORATIONS WOULD BE
CHARGING THE SMALL BUSINESS
OWNERS BELOW MARKET RATE? AND
THE MARKET IS GETTING UGLY. BUT
THIS BILL REQUIRES US TO BE
BELOW MARKET RATE AGAIN. THE
INDUSTRY HAS A WIDE RANGE, BUT
IT'S ALL IN THE HOME MARKET
RATE. YOU KNOW THE CDF PFIZER
BELOW MARKET RATE, OUR IMPACT
INVESTING PARTNERS OR BELOW
MARKET RATE. BUT FOR ADVANTAGE
CAPITAL I CAN SAY IN OUR SIMILAR
POLLS, WE ARE 50% OR MORE LESS
THAN THE AREA MARKET RATE ON
INTEREST. OKAY? AND THEN I, UM.
NOT SURE WHO CAN ANSWER THIS
QUESTION. BUT WHY WAS THE
CALIFORNIA POLLUTION CONTROL
FINANCE AUTHORITY CHOSEN TO
ADMINISTER THE PROGRAM? BIâU
BECAUSE WE DO HAVE A HISTORY OF
, UM, OF, YOU KNOW, RUNNING
THESE TYPE OF FINANCING SMALL
BUSINESS LOAN PROGRAMS. UH THE
SBC MONEY THAT'S COMING FROM THE
FEDERAL GOVERNMENT. BILLION
DOLLARS. WE'RE GOING TO BE
SPLITTING IT BETWEEN MY BANK AND
R C P C F A FOR THE CAL CAP FOR
SMALL BUSINESS, FOR EXAMPLE,
WHERE WE PROVIDE A LOAN LOSS.
GUARANTEE FOR PARTICIPATING
LENDERS SO THAT THEY WILL, UM,
BE MORE COMFORTABLE LENDING TO
THOSE, UH, YOU KNOW, FOLKS THAT
HAVE A LITTLE BIT A DIFFICULTY
ACCESSING THE REGULAR BANKS. AND
SO THOSE ARE THE PROGRAMS THAT
WE HAVE BEEN ASSIGNED TO IN THE
PAST. AND SO THIS IS KIND OF A
SIMILAR, UM, YOU KNOW, MAKING
SURE THAT THE SMALL BUSINESS
APPLY, YOU KNOW, QUALIFY UNDER
THE GUIDELINES, MAKING SURE THAT
THE IMPACT INVESTORS ARE ALSO
HELD ACCOUNTABLE THROUGH
REPORTING. UM AS WELL AS THROUGH
PUBLIC MEETINGS. WE HAVE A THREE
MEMBER BOARD, SO WE HAVE MONTHLY
MEETINGS. WE HAVE MINUTES WE
HAVE, YOU KNOW. UM ROBUST, UH,
PUBLIC COMMENT THAT IS NOW
VIRTUAL, SO PEOPLE DON'T HAVE TO
PHYSICALLY COME AND SO WE JUST
HAVE A HISTORY OF RUNNING THESE
PROGRAMS. FRUITS THROUGH THE
NAME IS MISLEADING. THEY'RE
PLANNING ON CHANGING THE NAME AS
WELL. SO I WE'VE HAD THAT
QUESTION TOO. WHY WOULD HER A
RECYCLING ORGANIZATION BE DOING
THIS, BUT IT'S SOMEWHAT
MISLEADING. I SHOULD SAY. SO
INITIALLY WE HAVE TWO GREEN
FINANCING AGENCIES. ONE IS THE
CALIFORNIA ALTERNATIVE ENERGY
AND TRANSPORTATION FINANCE
AUTHORITY TO THE SECOND ONE IS A
CALIFORNIA POLLUTION FINANCING.
CONTROL AGENCY, AND SO THOSE TWO
I'VE BEEN TRYING TO MERGE,
TRYING TO FIND A BETTER NAME
THAT REFLECTS WHAT WE DO, BUT WE
STARTED OUT PROVIDING CONDUIT
FINANCING FOR GARBAGE AND
RECYCLING WASTEWATER, THOSE TYPE
OF THOSE PROGRAMS AND THEN MORE
RECENTLY AS THESE PROGRAMS
PASSED THE LEGISLATURE. THEY
GIVE IT TO OUR AGENCY. AND SO
THAT'S WHY WE HAVE THE SMALL
BUSINESS CAL CAP FOR SMALL
BUSINESS PROGRAM AS PART OF OUR
PORTFOLIO DOWN AND THEN IN THE
STAFF ANALYSIS, THERE WAS SOME
QUESTION ABOUT WHETHER THE BOARD
MEMBERS SUPPORT THIS BILL. UM I
WOULD SAY THAT THE SMALL ARE
BOARD MEMBERS WELCOME THE
OPPORTUNITY TO CONTRIBUTE TO
HELP SMALL BUSINESSES ACCESS
CAPITAL. UM WE LOOK FORWARD TO
MORE WORK. OF COURSE, WE NEED
MORE MONEY FOR MORE STAFF THAT
GOES WITH ANY NEW PROGRAM, BUT
WE DON'T SHY AWAY FROM MORE
PROGRAMS AND. AND ESPECIALLY
DURING THIS TIME, HELPING SMALL
BUSINESSES. OKAY AND THEN THE
FINAL QUESTION, AND THIS WAS, I
THINK IN THE ANALYSIS TO, UM DO
YOU HAVE ANY INFORMATION ON THE
CONTROL? STATE COMPTROLLER OR
DIRECTOR OF FINANCES POSITION ON
THE BILL? UM, I DO NOT. ALL
RIGHT. DO WE HAVE ANY OTHER
QUESTIONS? MADAM CHAIR? I THINK
THAT MY TEAMMATES HAVE SOME
TECHNICAL RESPONSES TO THINGS
THAT HAVE COME UP. MADAM CHAIR
COMMITTEE MEMBERS. CHLOE KOEN
ERS WITH ADVANTAGE CAPITAL.
THANK YOU FOR YOUR TIME. I DID
WANT TO ANSWER YOUR QUESTION
CHAIR TO THE INTEREST RATES THAT
ARE WILL BE CHARGED TO THE
BUSINESSES AS PRESCRIBED IN
SENATE BILL 777. IF THERE IS A
SECURED LOAN, IT HAS TO BE LESS
THAN 4% PLUS THE FEDERAL FUNDS
RATE ON THE DATE OF THE
INVESTMENT IS MADE, WHICH TODAY
IS ABOUT 1.75. AND THEN IF IT IS
UNSECURED, IT'S LESS THAN 9%
PLUS THE FEDERAL FUNDS RATE AND
I WOULD ALSO NOTE THAT ALL THE
TERMS HAVE TO HAVE FLEXIBLE
TERMS, SO IT COULD BE DIFFERED
PRINCIPAL DEFERRED INTEREST OR
CONVERTIBLE INTO EQUITY. THE
BEAUTY OF THE WAY THAT IT'S
PRESCRIBED IS THAT YOU HAVE
BECAUSE IT'S LESS THAN THERE IS
ROOM THERE FOR IT TO BE EVEN
SMALLER THAN THE MAXIMUM CAP. SO
SECURED. YOU MEAN BY THE
PROPERTY. COLLATERAL COULD BE
COLLATERAL. YES, BUT AS SANDRA
MORE OUR IMPACT OFFICER
TESTIFIED, WE LOOK FOR VARIOUS
WAYS FOR THAT. THANK YOU. THANK
YOU. MADAM CHAIR MEMBERS OF THE
COMMITTEE. HI, I'M GINGER
PRINCE. I'M WITH ENHANCED
CAPITAL. UM I'M ORIGINALLY FROM
CALIFORNIA AND I DID TO STARTUPS
DOWN IN ORANGE COUNTY. UM SO THE
SECOND ONE IN THE YEAR 2000 AND
THEN MOVED OUT TO NEW YORK AND
STARTED WORKING FOR ENHANCED
CAPITAL, WHICH IS AN IMPACT
INVESTMENT FIRM. MOST RECENTLY I
MANAGED TO $25 MILLION FUND IN
WYOMING THAT UTILIZED TAX
INCENTIVES ALMOST IDENTICAL TO
THIS FOR US TO MAKE INVESTMENTS
IN SMALL BUSINESSES IN WYOMING.
THOSE BUSINESSES ARE COMPANIES
THAT WERE UNABLE TO OBTAIN
FINANCING THROUGH BANKS, AND
THEY WERE VERY SMALL IN SIZE.
SOME AS SMALL AS 50,000 AND SOME
AS LARGE AS $3 MILLION. WE WOULD
NOT HAVE DONE ANY OF THOSE
INVESTMENTS HAD THE TEXT
INCENTIVES NOT BEEN THERE. AND
SO I'M HERE TO TELL YOU THAT AS
A AS A DAUGHTER OF AN IMMIGRANT.
MY FATHER, WHO HAS A STORAGE
COMPANY DOWN IN, UM IN VAN NUYS,
UM, WAS UNABLE TO GET THE P P P
LOAN. AND MY FIRM NOT BEING SET
UP HERE IN THE STATE OF
CALIFORNIA WAS UNABLE TO HELP
HIM. AND SO EVEN THOUGH I KNEW
WHAT I KNEW ABOUTALL OF THE
PROGRAMS IN THE STATE BECAUSE HE
DIDN'T HAVE AN EXISTING
RELATIONSHIP WITH THE BANK, HE
WASN'T ABLE TO GET THAT THE
FIRST TIME AROUND. AND THEN
WASN'T ABLE TO GET AS MUCH AS HE
ACTUALLY NEEDED. SO I'M BACK IN
CALIFORNIA. NOW I'M DOWN IN
ORANGE COUNTY. UM I'D LIKE TO
UTILIZE THE LAST 20 YEARS OF
IMPACT INVESTMENT EXPERIENCE.
THAT I'VE HAD IN ORDER TO HELP
CONTRIBUTE TO REALLYUNDERSERVED
COMMUNITIES AND UNDER
UNDERREPRESENTED POPULATIONS AND
TO BE ABLE TO MAKE INVESTMENTS
LIKE THOSE THAT DIDN'T HAPPEN
FOR A LOT OF THE SMALL,
UNDERSERVED BUSINESSES IN THE
STATE. THANK YOU. SENATOR
BRADFORD. WOULD YOU LIKE TO
CLOSE? THANK YOU. AND I WANT TO
THANK MY WITNESSES. YOU'VE COME
BEFORE US TODAY. OUR TREASURER
MISS MORE, I THINK. I AS FORMER
CHAIR OF THE SENATE BANKING, I
THINK WE'VE SEEN ENOUGH
HISTORICALLY, THAT MINORITY
WOMEN OWNED SMALL BUSINESSES
HAVE BEEN IGNORED BY OUR
TRADITIONAL LENDING INSTITUTIONS
, AND I THINK IT'S TIME FOR US
TO THINK OUTSIDE THE BOX. THIS%
IS WHAT THE JUMPER START. ACT A
FORGE IS WE ALSO SAW IN THE LAST
TWO YEARS DURING THIS PANDEMIC
AGAIN, THE SAME INDIVIDUALS WHO
COULD NOT FIND TRADITIONAL LOANS
FOR THEIR BUSINESS. WE'RE NOT
GETTING P P P EITHER. AND AGAIN
THEY WERE MINORITY OWNED SMALL
MOM AND POP OPERATIONS WHO
SUFFERED AND MANY CLOSED THEIR
DOORS BECAUSE THEY DID NOT HAVE
ACCESS TO CAPITAL. THIS IS I
THINK WE'RE AT A POINT THAT WE
NEED TO CHANGE. THE DYNAMICS OF
HOW WE LEND MONEY, AND THIS IS
OPPORTUNITY TO REACH THOSE
BUSINESSES. MANY OF THESE FOLKS
WHO HAVE THE BUSINESS ACUMEN BUT
AGAIN DO NOT HAVE THE HISTORY
WOULD HAVE BANK A GOOD FRIEND OF
MINE JUST OPENED A BUSINESS IN
THE LAST MONTH AND A HALF. SHE
CALLED ME THE OTHER NIGHT CRYING
BECAUSE SHE'S $50,000. SHE
THOUGHT SHE WAS GOING TO GET A
SMALL BUSINESS LOAN TO KEEP OUR
DOORS OPEN. AND SHE CALLED ME
FRIDAY NIGHTS AND I FEEL LIKE
CRAP BECAUSE I CAN'T PAY MY MAKE
MY PAYROLL. AND SHE INVESTED
EVERYTHING SHE HAD, AND SHE
CAN'T GET A TRADITIONAL LOAN AND
SHE WAS WORKING WITH IT SOMEWHAT
FOLKS WHO WERE TRYING TO HELP
HER AND IT DIDN'T COME THROUGH
TO THE TRADITIONAL, SO THIS IS
AN OPPORTUNITY TO FEEL THAT GAP
AND AGAIN. THIS IS NOT BUSINESS
AS USUAL, AND WE SHOULDN'T WANT
TO DO BUSINESS AS USUAL BECAUSE
BUSINESS AS USUAL, HAS FAILED.
THESE ASPIRING OPERATORS ARE
SMALL BUSINESS OPERATORS ARE
THOSE WHO WISH TO BE BUSINESS
OPERATORS. THEY CANNOT GET THE
LOAN. SO THIS IS OPPORTUNITY
WORKING. AND I COMMEND THE
TREASURER AND FOR THE CREATIVITY
HERE, AND I WOULD HOPE THAT WE
AS LEGISLATORS WOULD EMBRACE
SOMETHING NEW AND THE GOVERNMENT
HAS FAILED THESE BUSINESSES TO
BECAUSE AGAIN WE SAW DURING THE
PANDEMIC. WHEN THE FEDERAL
GOVERNMENT WAS PUTTING OUT LOANS
THEY WEREN'T SERVING. THEY WERE
DOING IT TO SHAKE SHACK AND
BILLION DOLLAR COMPANIES WHO
WERE EMBARRASSED BECAUSE YOU HAD
TO RETURN THEM MONEY BACK
BECAUSE THEY REALLY DIDN'T NEED
IT BECAUSE IT WASN'T GOING TO
THE BUSINESSES THAT NEED IT.
THIS IS AN OPPORTUNITY TO PUT
MONEY. IN BUSINESSES THAT TRULY
NEEDED THAT ARE UNDERSERVED,
HONOR, UNDEREMPLOYED AND HELP
STIMULATE NOT ONLY THE COMMUNITY
BUT HELP. AS I STATED THESE
BUSINESS SURVIVE AND GROW SO AT
THE APPROPRIATE TIME, I'D LOVE
YOUR SUPPORT ON THIS MEASURE.
ALL RIGHT. THANK YOU. VERY FOR
YOUR PRESENTATION. THANK YOU.
HEY, WE ARE GOING TO, UM, WE'RE
GOING TO HAVE, UH, SENATOR
CABALLERO, COME UP AT FIRST.
WE'RE JUST GOING TO MOVE THROUGH
THE BILLS REAL QUICK. SO WE'RE
GONNA LIFT THE CALL ON ITEM
FOUR. SP 989. THE MOTION IS DUE
PASS AS AMENDED TO
APPROPRIATIONS WHEN BLOOM. UM I
WILL BE MAZE. MAY'S AYE. REVIS.
THEY ARDO. SEE HER AT ALL THAT
BILL IS PASSED. THAT BILL HAS
PASSED. CAN WE? JUST SINCE WE
HAVE 8 TO 0, CAN WE GO AHEAD AND
MOVE TO SP 967 HERTZBERG.
CALL THE ABSENTEE. THE ABSENTEES
, PLEASE. THAT BILL HAS PASSED
BLOOM BLOOM I MAZE I'M ON RIVAS
SARATOGA. SARAH D!I. ALRIGHT UH
WE WILL MOVE NEXT TO SP 5 18
LAIRD. THAT BILL HAS PASSED.
BLUE. THEM. I MISS. MAYS. I
RIVAS. SARAH DOES SIERRA D¯úI
LAST WE WILL GO TO CONSENT.
CONSENT CALENDARS OUT BLOOM.
WELL, I MAIZE MAIZE. AYE. RIVAS
SERATO SEYARTO, AYE. ALL RIGHT.
THANK YOU FOR YOUR PATIENTS,
SENATOR AND YOU MAY BEGIN
WHENEVER YOU'RE READY. THANK YOU
VERY MUCH, MADAM CHAIR AND
MEMBERS FOR THE OPPORTUNITY TO
PRESENT SB 13 85 13 49. TODAY,
WHICH EXPANDS THE NEW
EMPLOYMENT. CREDIT TO PROVIDE
GREATER INCENTIVES FOR EMPLOYERS
TO HIRE INDIVIDUALS THAT FACE
SIGNIFICANT BARRIERS TO
EMPLOYMENT. BEFORE I BEGIN. I
WOULD LIKE TO THINK THE CHAIR
AND THE COMMITTEE STAFF FOR
THEIR WORK ON THE ISSUE AND FOR
THE I THINK THEY'RE REALLY
THOROUGH ANALYSIS. THIS BILL
EXPANDS ELIGIBILITY OF THE
STATE'S NEW EMPLOYMENT TAX
CREDIT TO ALLOW BUSINESSES TO
CLAIM THE CREDIT FOR EMPLOYEES.
UNDER THE FEDERAL WORK
OPPORTUNITY TAX CREDIT PROGRAM.
IN 1994, THE FEDERAL GOVERNMENT
ESTABLISHED THE WORK OPPORTUNITY
TAX CREDIT, WHICH ALLOWS
EMPLOYERS TO CLAIM A FEDERAL TAX
CREDIT IF THEY HIRE AND INVEST
IN INDIVIDUALS SEEKING WORK THAT
HAVE CONSISTENTLY FACED BARRIERS
TO EMPLOYMENT. ELIGIBLE ELIGIBLE
JOBSEEKERS INCLUDE VETERANS WITH
A SERVICE CONNECTED DISABILITY,
TEMPORARY ASSISTANCE TO NEEDY
FAMILIES. FOOD STAMP RECIPIENTS
FORMERLY INCARCERATED
INDIVIDUALS AND INDIVIDUALS ON
LONG TERM AND EMPLOYMENT, JUST
TO NAME A FEW. IN THIS PROGRAM,
EMPLOYERS OBTAIN A CERTIFICATE
THROUGH THE CALIFORNIA
EMPLOYMENT DEVELOPMENT
DEPARTMENT TO ENSURE INDIVIDUALS
HIRED MEET THE QUALIFICATIONS
UNDER THE WORK OPPORTUNITY TAX
CREDIT. AND EMPLOYERS PROVIDE
THE CERTAIN CERTIFICATION TO THE
I. R. S WHEN CLAIMING THE CREDIT
DESPITE THE DECLINE IN THE
UNEMPLOYMENT RATES IN CALIFORNIA
, THEIR RECOVERY HAS BEEN
INCONSISTENT. AND EALLY VARIES
BY REGION. MANY INDIVIDUALS
FAKES FACE SIGNIFICANT BARRIERS
TO EMPLOYMENT AND STRUGGLE TO
FIND WORK AND REMAIN AND
CONTINUE TO REMAIN UNEMPLOYED.
SB 13 49 WELL, INCENTIVIZING USE
OF ANY C BY CREATING A SIMPLE
EXPANSION OF THE CURRENT STATE
PROGRAM FOR EMPLOYERS WHO
QUALIFY FOR THE FEDERAL WORK
OPPORTUNITY TAX CREDIT. IN
ADDITION TO ADDING THE W OTC
ELIGIBILITY REQUIREMENT. THE
BILL ALSO SEEKS TO ADDRESS A
NUMBER OF ISSUES THAT HAVE MADE
CLAIMING ANY CIA CHALLENGE. AS
NOTED IN THE MARCH 2020 REPORT
FROM THE FRANCHISE TAX BOARD.
THE ACTUAL CREDITS CLAIMED WERE
SIGNIFICANTLY LOWER THAN
INITIALLY ESTIMATED, SO TO HELP
FURTHER IMPROVE UTILIZATION SP
13 49 EXPANDS THE GEOGRAPHIC
SCOPE OF THE NBC TO THE ENTIRE
STATE. AND EXPANDS THE ELIGIBLE
BUSINESSES TO INCLUDE LARGE
BUSINESSES IN THE RETAIL,
RESTAURANT AND ENTERTAINMENT
SECTOR SECTORS. SP 13 49 KEEPS
IMPORTANT GUARDRAILS IN PLACE,
SUCH AS REQUIRING WAGES TO BE
PAID. AT 150% OVER THE MINIMUM
WAGES MINIMUM AND ENSURE THAT
EMPLOYERS REPORT NET INCREASES
IN EMPLOYMENT. EXPANDING THE NDC
SHOULD INCREASE THE
OPPORTUNITIES EMPLOYERS HAVE
THROUGHOUT THE STATE TO DO
TARGETED OUTREACH TO INDIVIDUALS
WHO NEED ADDITIONAL ASSISTANCE
TO SECURE EMPLOYMENT. AND
BECAUSE THE NDC IS VERY IS VERY
COMPLEX TO CLAIM AND HOW
STRINGENT REQUIREMENTS TO PAY
HIGH WAGES. LARGER BUSINESSES
ARE MORE LIKELY TO HAVE THE
SOPHISTICATION. TO NAVIGATE THE
DETAILS AND THE REQUIREMENTS OF
THE TAX CREDIT. IN ADDITION TO
PAYING THE HIGHER WAGES, IT'S MY
BELIEF THAT ANY C CAN PROVIDE A
GREAT PATHWAY FOR INDIVIDUALS
THAT HAVE FACED SIGNIFICANT
BARRIERS TO EMPLOYMENT. TO BUILD
WEALTH AND LAUNCH A CAREER SO WE
SHOULD DO WHAT WE CAN TO ENHANCE
THE NX POTENTIAL. I WILL BE
SUBMITTING AMENDMENTS TO THE
COMMITTEE THAT ADDRESS ISSUES
THAT HAVE BEEN OUTLINED IN THE
ANALYSIS. INCLUDING ADDRESSING
TECHNICAL DRAFTING ERRORS
RELATED TO WAGES, WAGES PAID AND
TO SALARIED EMPLOYEES INCLUDE
LANGUAGE TO ENCOURAGE AND EXPAND
THE HIRING OF INDIVIDUALS INTO
JOBS. THAT PAY A LIVING WAGE AND
ADJUST CURRENT DATA REPORTING
REQUIREMENTS UNDER ANY C TO
REFLECT CHANGES MADE UNDER THE
BILL. FINALLY TO ADDRESS THE
CONCERNS RAISED BY THE CHAIR.
I'M WILLING TO INCLUDE
AMENDMENTS THAT WILL RETURN THE
EXCLUSION OF LARGE BUSINESSES TO
THE PROGRAM WITH ME TO TESTIFY
AND SUPPORT IS KEVIN PEDRO DE
LEGISLATIVE ADVOCATE ON BEHALF
OF THE NATIONAL FEDERATION OF
INDEPENDENT BUSINESSES. AND
FAITH MORTGAGES, LEGISLATIVE
ADVOCATE ON BEHALF OF FAMILY
BUSINESS ASSOCIATION OF
CALIFORNIA. MADAM CHAIR MEMBERS
OF THE COMMITTEE KEVIN PEDRETTI
ON BEHALF OF AND IF I BE N F I B
IS IN FULL SUPPORT OF SB 13 49.
THE CALIFORNIA NEW EMPLOYMENT
CREDIT IS A USEFUL TAX CREDIT
FOR CALIFORNIA BUSINESSES, BUT
IT'S UNDERUTILIZED AS IT IS. THE
CHANGES TO THE CURRENT TAX
CREDIT, REMOVING GEOGRAPHIC
LIMITATIONS, ELIMINATING
DISREGARDED QUALIFIED BUSINESSES
AND EXPANDING THE CRITERIA OF
QUALIFIED EMPLOYEES. WILL ASSIST
IN THE USEFULNESS OF THE
EMPLOYMENT TAX CREDIT. OWNERS OF
SMALL BUSINESSES INDICATE THAT
INFLATION HAS INCREASED PRESSURE
ON AN ALREADY TIGHT JOB MARKET,
MAKING IT DIFFICULT TO KEEP PACE
WITH WAGES AND BENEFITS OFFERED
BY LARGER EMPLOYERS. HIRING
CHALLENGES ARE HURTING SMALL
BUSINESS GROWTH AS UNCERTAINTY
OF THE ECONOMIC OUTLOOK
CONTINUE. A RECENT SURVEY
REPORTED THAT OVER 60% OF SMALL
BUSINESSES ARE HAVING HIRING
CHALLENGES, WHICH ARE AFFECTING
THEIR ABILITY TO OPERATE AT FULL
CAPACITY. LIKE ALL COMPANIES,
SMALL BUSINESSES ARE SPENDING
MORE TO ATTRACT AND RETAIN
WORKERS. AS THE REPRESENTATIVE
OF SMALL BUSINESS THROUGHOUT THE
STATE OF CALIFORNIA. WE BELIEVE
SP 13 49 WILL ASSIST EMPLOYERS
AND ASSIST THOSE WANTING TO
ENTER THE JOB MARKET. FOR THOSE
REASONS, WE ASK THAT YOU SUPPORT
THIS MEASURE. GOOD EVENING CHAIR
AND MEMBERS. FAITH GORGEOUS ON
BEHALF OF THE FAMILY BUSINESS
ASSOCIATION OF CALIFORNIA HERE
IN SUPPORT OF SB 13 49 FPS
MEMBERS TAKE A LONG VIEW ON MANY
ISSUES, INCLUDING UPDATING
EDUCATION STANDARDS AND
ENHANCING CAREER PATHWAYS FOR
FAMILIES AND EMPLOYEES WORKING
TO ENSURE QUALITY ENVIRONMENT
FOR FUTURE GENERATIONS AND
EXTENDING A HELPING HAND TO
OTHERS IN OUR COMMUNITIES TO
RISE UP THE ECONOMIC LADDER. AND
THIS BILL DOES THAT IN A
MEANINGFUL WAY. UNDER THE NEW
EMPLOYMENT CREDIT BUSINESS
OWNERS CAN CLAIM CREDITS AGAINST
THEIR PERSONAL INCOME OR
CORPORATE TAX WHEN THEY HIRE A
QUALIFIED FULL TIME INDIVIDUAL
FURTHER. THE BILL WOULD BROADEN
THE NEW EMPLOYMENT CREDIT BY
ALLOWING ALL HIRING QUALIFIED
EMPLOYEES WITHIN THE STATE, NOT
JUST DESIGNATED GEOGRAPHIC AREAS
TO QUALIFY FOR THE CREDIT BY
BLENDING ELEMENTS OF THE WORK,
OPPORTUNITY, TAX CREDIT AND THE
NEW EMPLOYMENT CREDIT. THE LAW
WILL PROVIDE A SIMPLIFIED
PROCESS FOR EMPLOYERS TO QUALIFY
FOR THE TAX CREDIT AND HIRE MORE
CALIFORNIANS IN NEED OF GAINFUL
EMPLOYMENT. SP 13 49 SUPPORTS
CALIFORNIA'S EMPLOYERS IN THEIR
FIGHT TOWARDS ECONOMIC RECOVERY
THROUGH THE PROMOTION OF GOOD
JOB OPPORTUNITIES FOR VULNERABLE
FOR VULNERABLE JOBSEEKERS WITHIN
OUR COMMUNITIES, AND FOR THOSE
REASONS AND MORE WE SUPPORT SB
13 49. THANK YOU. DO WE HAVE ANY
OTHER SPEAKERS IN SUPPORT? WAS
THAT A NO? THERE WAS A LITTLE
MOVEMENT BACK THERE. ALRIGHT
SPEAKERS IN OPPOSITION. MADAM
CHAIR AND MEMBERS, ISABELLA VEER
HERE ON BEHALF OF THE CALIFORNIA
TAX REFORM ASSOCIATION IN
RESPECTFUL OPPOSITION. THANK
YOU. THANK YOU. ANOTHER INTERN.
ALRIGHT QUESTIONS FROM THE
COMMITTEE. YES YOU'RE EXPANDING
. WELL, FIRST OF ALL, WE ALREADY
, UH, DID NOT BRING FORWARD A
BILL. THAT EXPANDED THIS TO A
LARGER BUSINESSES. SO. YOU MIGHT
THINK ABOUT THAT, IN TERMS OF
WHAT AMENDMENTS YOU MIGHT WANT
TO TAKE BECAUSE WE DID. WE DID
REJECT THE BILL LIKE THAT
ALREADY. UM, SECOND, UM. HOW CAN
WE BE SURE THAT THIS IS IN
INCENTIVE TO DO MORE, AS OPPOSED
TO SIMPLY AH REWARD PEOPLE WHO
ALREADY HAVE TAKEN THE FEDERAL
AH, TAX. UH WAS IT W, THE
FEDERAL PROGRAM? CAN THIS WOULD
LEAST REALLY INCENTIVIZED
PEOPLE, AS OPPOSED TO SIMPLY
REWARD THEM. THAT'S A REALLY
GOOD QUESTION. ASSEMBLYMEMBER'S
THAT THE INTENT IS THAT THESE BE
NEW HIRES, UM NOT DISPLACE OR
NOT. COUNT. TWICE SOMEONE THAT
YOU'VE HIRED IN THE PAST. AND
SO, UM, IF WE NEED TO STRENGTHEN
THE LANGUAGE TO MAKE IT CLEAR
THAT THESE ARE NEW, HIRE EASE
THAT ARE YOU HAVE TO GET A
CERTIFICATE. AND SO THIS
CERTIFICATE WOULD BE DATED AS OF
A CERTAIN DATE, AND IT HAS TO BE
A NEW CERTIFICATE CONCEPT
ANYWAY. BUT THE POINT SO WHAT
I'M REALLY ASKING IS WHAT IS
THIS? A HIGHER THAT WOULD HAVE
HAPPENED ANYWAY. WITHOUT THE
EXPANSION OF YOUR PROGRAM. IS IT
REALLY GOING TO INCENT PEOPLE TO
DO MORE? THAT'S THE GOAL. I KNOW
THAT INCENTIVIZE. HOW CAN WE BE
SURE THAT IT'S ENOUGH OF
INCENTIVE RATHER THAN JUST TO
DRAIN ON THE UH HUH. TAX. WELL I
THINK THAT THE REALITY OF THE
SITUATION IS THERE THERE ARE
THERE'S A SIZABLE POPULATION
THAT HAS A HARD TIME FINDING A
JOB BECAUSE OF THE CIRCUMSTANCES
OF THEIR LIFE. UM AND WITH WHAT
THIS WOULD DO IS IT WOULD
PROVIDE THE INCENTIVE FOR THE
EMPLOYER TO GO OUT AND TO FIND
THOSE INDIVIDUALS ARE GOING TO
HAVE TO WORK WITH SOMEBODY IN
ORDER TO BE ABLE TO IDENTIFY THE
INDIVIDUALS THAT WOULD QUALIFY
EITHER WORKING THROUGH THE
DEPARTMENT OF SOCIAL SERVICES OR
THROUGH THE DEPARTMENT OF
CORRECTIONS, FOR EXAMPLE,
INDIVIDUALS THAT MEET THE
QUALIFICATIONS AND SO, UM THE
QUESTION THAT YOU RAISED WITH
THESE HAVE BEEN HIRES THAT THAT
WOULD HAVE HAPPENED ANYWAY. I
THINK WHAT IT WHAT IT DOES. IS
IT INCENTIVIZES THEM GET TO GIVE
ADEQUATE QUIT TRAINING. AND TO
ACTUALLY BE ABLE TO FILL THE PRE
REQUISITES OF A JOB THAT'S GOING
TO PAY THEM SIGNIFICANTLY OVER
MINIMUM WAGE. SO, FOR EXAMPLE,
WHERE I LIVE NOW. AH SENIOR
COMMUNITY. THEY SERVE MEALS. WE
HAVE NOT BEEN ABLE TO HIRE
ENOUGH WAITERS AND WAITRESSES.
AND YOU KNOW, THESE PEOPLE COME
IN KNOWING NOTHING. AND PERHAPS
WE WOULD GET A CREDIT. WE WOULD
HIRE ANOTHER SIX IF WE COULD. WE
JUST HAVEN'T BEEN ABLE TO GET
THEM. SO THAT'S THE CONCERN. I
HAVE THAT. YEAH WE'LL GET CREDIT
FOR THE SIX PEOPLE WE WERE ABLE
TO HIRE. BUT WE WOULD HAVE HIRED
THEM ANYWAY. AND THEY'RE COMING
IN COMPLETELY UNTRAINED. UM I
CAN VERIFY THAT I KNOW THAT
HAVING GOTTEN SERVICE FROM THEM
SO THAT THOSE ARE MY TWO
CONCERNS. SO THANK YOU. THANK
YOU VERY MUCH. ALRIGHT. WOULD
YOU LIKE TO CLOSE? THIS. THIS
IS, UM. THERE ARE THERE REALLY
ARE PARTS OF THE STATE THAT
WE'RE THE, UM ECONOMIC RECOVERY
HAS BEEN VERY SLOW AND, UM,
WHERE THERE ARE SIGNIFICANT
POPULATIONS THAT. ARE AVAILABLE
FOR WORK BETTER HAVING A REALLY
HARD TIME FINDING WORK AND WHAT
THIS TAX CREDIT IS, UM, IS SET
UP TO DO IS TO ALLOW THE
BUSINESSES TO BE ABLE TO
BASICALLY PUT THESE TWO TAX
CREDITS TOGETHER TO MAKE IT, UM
, POSSIBLE TO BRING SOMEONE IN
HIRE THEM AT AT A HIGHER WAGE
THAN MEN TAKE TO GET TO YOUR
QUESTION ASSEMBLYMEMBER'S AT
MAYBE THAT THEY COULD HIRE THEM
THAT HIRE THEM AT MINIMUM WAGE
AND TAKE NOTE TAX CREDIT OR HIRE
THEM SIGNIFICANTLY ABOVE MINIMUM
WAGE AND PROVIDE THE TRAINING
AND THE SUPPORT NECESSARY TO
KEEP THEM IN THE EMPLOYMENT. UM. UH CATEGORY AND TO HAVE THEM
FEEL LIKE LIKE THEY'RE
APPRECIATED AND, UH AND CAN EARN
A LIVABLE WAGE. SO THAT'S WHAT
THE TAXES THAT'S WHAT THE BILL
IS ABOUT. THAT'S WHAT OUR GOAL
IS. IT'S WHAT OUR HOPE IS. AND
SO WE RESPECTFULLY ASK FOR YOUR
RIVAL WHEN THE TIME COMES.
RIGHT? THANK YOU VERY MUCH.
THANK YOU. UM AND I THINK WE ARE
NOW ON OUR LAST SITE, UM. AH SB
13 82 SENATOR GONZALEZ. THANK
YOU, MADAM CHAIR AND MEMBERS
HERE TODAY TO PRESENT SENATE
BILL 13 82, WHICH WILL HELP MAKE
CALIFORNIA'S CLEAN CARS FOR ALL
PROGRAM MORE EQUITABLE. OVER THE
LAST SIX YEARS, CLEAN CARS FOR
ALL HAVE HAS PLACED OVER 11,000
0 EMISSION IN HYBRID VEHICLES
INTO LOW INCOME HOUSEHOLDS,
REPLACING OLDER, HEAVY POLLUTING
VEHICLES. WHILE THIS PROGRAM
TARGETS LOW INCOME HOUSEHOLDS,
MOST OF THE VOUCHERS DO NOT GO
TO HOUSEHOLDS IN DISADVANTAGED
COMMUNITIES, ACCORDING TO A
STUDY BY THE L. A LUSKIN CENTER
ONLY 48% OF CLEAN CARS FOR ALL
FUNDS. WENT TO DISADVANTAGED
COMMUNITIES BY CENSUS TRACT, AND
ONLY 19% WENT TO THE MOST
SEVERELY DISADVANTAGED
COMMUNITIES. SB 13 82 WILL ALSO
LOWER, LOWER THE COST OF
PARTICIPATE IN THE CLEAN CARS
FOR ALL PROGRAM BY EXEMPTING
CARS BOUGHT AND SOLD THROUGH THE
PROGRAM. FROM STATE PROPERTY
TAXES. FOR FIVE YEARS WAVING
THIS 3.94% TAX WILL MAKE THE
PROGRAM MORE AFFORDABLE. LASTLY
SP 13 82 REQUIRES THE AIR
RESOURCES BOARD TO IDENTIFY
CURRENTLY UNDERSERVED GROUPS AND
DEVELOP STRATEGIES TO PROMOTE
OUTREACH. AND LOWER BARRIERS FOR
THOSE GROUPS TESTIFYING AND
SUPPORT OF THE BILL. TODAY I
HAVE ALAN ABS, THE LEGISLATIVE
OFFICER FOR THE AREA OF AIR
QUALITY MANAGEMENT DISTRICT, AND
I RESPECTFULLY ASK FOR MY VOTE.
GOOD AFTERNOON CHAIR IRWIN AND
MEMBERS OF THE COMMITTEE. I'M
ALAN ABS WITH THE BAY AREA AIR
QUALITY MANAGEMENT DISTRICT. I'M
TESTIFYING TODAY IN SUPPORT OF
SB 13 82 AND TO EXPLAIN THE
IMPORTANCE OF THE QUEEN CARS FOR
ALL PROGRAMS IN THE BAY AREA TO
SUPPORT EQUITY IN ADVANCING A
CLEAN CAR FUTURE. CLEAN CARS,
FOR ALL IS A RETIREMENT REPLACE
PROGRAM WHERE INCOME QUALIFIED
RESIDENTS IN COMMUNITIES
DISPROPORTIONATELY BURDENED BY
POLLUTION CAN TURN IN AN OLDER
VEHICLE AND GETTING INCENTIVE TO
PURCHASE OR LEASE A HYBRID PLUG
IN HYBRID ELECTRIC VEHICLE OR
FUEL CELL ELECTRIC VEHICLE. THAT
IS EIGHT YEARS OLD OR NEWER. IN
THE THREE YEARS THAT THE BAY
AREA AQMD IS ADMINISTERED THIS
PROGRAM WE HAVE SUPPORTED
APPROXIMATELY 3000 VEHICLE
PURCHASES WITH TWO THIRDS OF
THOSE OCCURRING IN OUR MOST
DISADVANTAGED COMMUNITIES. THE
HOUSEHOLD INCOME IN THE VEHICLE
CHOSEN DETERMINE THE AMOUNT OF
MONEY YOU CAN RECEIVE FROM THIS
PROGRAM WITH GRANTS RANGING FROM
$5500 TO $9500, DEPENDING ON
INCOME, AND THE VEHICLE CHOSE
CHOSEN. BUT THE AVERAGE CLEAN
CARS FOR ALL VEHICLE CURRENTLY
COSTS $28,000. WHILE THE AVERAGE
CLEAN CARS FOR ALL INCENTIVE IS
$8500 IN THE AVERAGE LOAN
STILL REQUIRES A SIGNIFICANT OUT
OF POCKET EXPENSE FOR MOST
ELIGIBLE APPLICANTS, PROVIDING
AN ADDITIONAL INCENTIVE OR
LIMITING THE TAX BURDEN ON
INDIVIDUALS PARTICIPATING IN
THIS PROGRAM WOULD HELP EXPAND
THE APPLICANT POOL. REDUCE
PARTICIPANT COSTS AND SUPPORT
CALIFORNIA'S EQUITY AND THEOREM
EMISSION VEHICLE GOALS. UM I
THINK SENATOR GONZALEZ FOR HER
LEADERSHIP ON THIS ISSUE, AND
I'M HERE TO ANSWER ANY QUESTIONS
THAT PEOPLE MAY HAVE ABOUT THE
PROGRAM. THANKS. ALL RIGHT. DO
WE HAVE OTHER SPEAKERS IN SPORT?
UNFORTUNATELY, GOOD AFTERNOON
CHAIR AND MEMBERS. ERICA ROMERO
ON BEHALF OF CAL START IN
SUPPORT, AS WELL AS VALLEY
CLEANER NOW IN SUPPORT AND AMEND
POSITION. THANK YOU. THANK YOU
ANY WITNESSES AND OPPOSITION?
ASSEMBLYMEMBER'S WORK. DO YOU
HAVE A QUESTION? I ALWAYS HAVE
QUESTIONS DON'T DON'T FEEL
OFFENDED. SO THERE WAS AN L. A
REPORT THAT QUESTIONED THE
EFFECTIVENESS OR AT LEAST GOOD
NECESSARILY QUESTION THE
EFFECTIVENESS. IT JUST SAID
THERE'S NO EVIDENCE THAT NONE
HAS BEEN PROVIDED FOR THE
CURRENT PROGRAM TO SHOW THAT IT
IS ACTUALLY PAYING OFF. THAT IT
IS ACTUALLY PROMOTING. UM MORE
PURCHASES IN THIS COMMUNITY. UM. AND SO THAT'S ONE CONCERN. AND
DO YOU HAVE ANY EVIDENCE TO SHOW
THAT THE PROGRAM IS WORKING WELL
NOW AND THAT ADDING THIS
ADDITIONAL INCENTIVE WOULD MAKE
IT WORK BETTER. WELL, THANK YOU
FOR THE QUESTION.
ASSEMBLYMEMBER'S I ALWAYS
APPRECIATE YOUR QUESTIONS. AND
UM YES. SO THIS IS, YOU KNOW,
IT'S A FAIRLY NEW PROGRAM IN THE
LARGE SCHEME OF THINGS. BUT WHAT
I WOULD SAY IS THAT IN ADDITION
TO THIS BILL TO LOWER THE TAX
BURDEN ESPECIALLY IN A TIME OF
HIGH INFLATION OVER 8% BUT I DO
HAVE A PARALLEL BILL KIND OF
COMPANION BILL TO LOOK AT A ZERO
EMISSION EQUITY ADVOCATE THAT
WILL HELP ALIGN THE ZERO
EMISSION GOALS THAT WE HAVE FOR
OT ONLY LIKE DUTY BUT HEAVY
DUTY AS WELL. TO MAKE THE
PROGRAM MORE MARKETABLE IN AREAS
THAT ARE REALLY UNDERSERVED,
ESPECIALLY IN PLACES LIKE RURAL
COMMUNITIES AS WELL. SO
GEOGRAPHICALLY, UM, AND ALSO
JUST ENSURING THAT AREAS THAT
ARE IN NONATTAINMENT UNDERSERVED
COMMUNITIES. LIKE WHAT? WHO I
REPRESENT SOUTH EAST LOS ANGELES
THAT THEY ARE BEING MARKETED TO,
UM IN A WAY, THAT'S YOU KNOW,
MORE PROFOUND, SO WITH THIS. I
THINK WE CAN DO EVEN MORE TO
MARKET THE ZERO EMISSION GOALS
THAT WE HAVE, ESPECIALLY WITH
THE $10 BILLION APPROPRIATION
CURRENTLY TO BE ABLE TO MAKE THE
PROGRAM MORE ROBUST. SO A LOT
MORE WORK TO DO IS WHAT I THINK
THAT OVERALL GOAL AND THEN THE
TEACHERS HAVE AN ISSUE WITH THIS
BECAUSE OF THE IMPACT ON PROP 98
IF YOU MADE THIS A GRANT PROGRAM
RATHER THAN ATTACKS AND
BASICALLY HALF OF WHATEVER YOU.
WHATEVER THIS TAX BREAK IS.
WOULD DECREASE THE PROP 98 FUNDS
BY BY THAT AMOUNT BY HALF OF
WHAT IT IS THAT YOU'RE GIVING A
TAX BREAK FOR. SO THEY WOULD
PREFER THAT IT BE HANDLED WITH A
GRANT. OF COURSE, WE'RE PUTTING
QUITE A BIT OF MONEY INTO THIS
ALREADY. AND SO YOU KNOW,
THERE'S A QUESTION OF
EFFECTIVENESS AS WELL AS WHY IT
IS A TAX BREAK AS OPPOSED TO A
GRANT PROGRAM. THANK YOU. WELL,
THAT IS A GOOD QUESTION. THIS IS
THE FIRST AND THAT I'VE HEARD OF
THE TEACHERS HAVING AN ISSUE
WITH THIS PARTICULARLY, BUT I
WOULD SAY, YOU KNOW, AS WE ARE
IN THIS SPACE OF PROVIDING MORE
DOLLARS TO COMMUNITY MEMBERS,
ESPECIALLY AS YOU KNOW, WE'VE
WE'VE GIVEN. I THINK WE JUST
ANNOUNCED TODAY OVER $1000 TO
FAMILIES. THAT ARE LOWER INCOME
IN RELIEF, SO I THINK THIS IS
JUST ONE OTHER THING. BUT I
WOULD ALSO SAY, YOU KNOW, THIS
IS THIS IS I BELIEVE THE
APPROPRIATIONS ESTIMATED THAT IT
WOULD ONLY BE ABOUT $3.8 MILLION
PER YEAR. HIT SO. AND HAD A LOT
OF MONEY. I'M SORRY. ACTUALLY
THE TEACHERS HAVE A GENERAL
CONCERN. THEY DIDN'T RAISE ONE
FOR THIS PROGRAM. I'M SORRY IF I
GAVE THAT IMPRESSION. BUT IT'S
ONLY 3.8 MILLION A YEAR. THAT'S
CORRECT. OKAY WELL, THAT'S
CERTAINLY BUDGET DUST. BUT IF MR
ABS WOULD LIKE TO ADD ANYTHING
ELSE RELATIVE JUST DOING THE
MATH IN MY HEAD, YOU KNOW, 4%
OVER ABOUT $100 MILLION PROGRAM
A YEAR AND WAS COMING UP WITH
THOSE NUMBERS, OKAY? SO IT'S NOT
A LOT OF MONEY. SO THEN THE MAIN
QUESTION IS, IS IT? IS IT GOING
TO BE EFFECTIVE? WILL YOU REALLY
MHM. GET MORE PEOPLE INTO THE
PROGRAM CERTAINLY OR OTHER BILL
THAT'S THE WHOLE POINT. AND, UH,
CERTAINLY. I WILL PROBABLY
SUPPORT THAT ON THE FLOOR WHEN I
SEE IT. THANK YOU. THANK YOU.
AND I WAS I HAD ONE MORE THING
TO YOUR PREVIOUS QUESTION. I
THINK ONE OF THE CONCERNS THAT
THE LAO HAD REALLY RELATED TO,
UM, A DATA AND INFORMATION GAP.
CONCLUSION OF THE GRANTS, AND SO
I, NO CARB IN THE AIR DISTRICTS
HAVE BEEN WORKING TOGETHER TO
TRY TO FIND OUT WAYS TO GET AH,
THAT DATA AT THE CONCLUSION OF A
GRANT TO FIND OUT TO GET ANSWERS
FROM PARTICIPANTS IN THE PROGRAM
AND ANSWER THOSE QUESTIONS THAT
THE LÎNG DIDN'T HAVE A PROBLEM
WITH THIS PROGRAM. YOU'RE RIGHT.
IT'S JUST QUESTION OF DATA. OKAY
GREAT. THANK YOU. I JUST WANT TO
CLARIFY WHAT IS THE AMOUNT OF
THE GRANT PROGRAM RIGHT NOW.
WELL YOU CAN GET UPWARDS THE
CLEAN CARS FOR ALL PROGRAM
DEPENDING ON INCOME LEVEL, YOU
CAN GET UPWARDS OF $9500 PER
PERSON FOR TO TURN IN YOUR OLD
CLUNKER IF YOU WILL, FOR LACK OF
A BETTER WORD INTO A NEW ZERO
EMISSION VEHICLE, WHICH COULD BE
ELECTRIC HYDROGEN FUEL CELL. YOU
COULD ALSO GET TRANSIT PASSES
AND OTHER MOBILITY. UM SORT OF
TRANSPORTATION METHODS. AND THEN
WHAT? BUT WHAT'S THE TOTAL
AMOUNT ALLOCATED TO THAT
PROGRAM? OH GOSH. THE TOTAL
AMOUNT ALLOCATED A GOOD
QUESTION. THE. I'M GOING OFF MY
, UM, QUICK READING OF THE
BUDGET DOCUMENTS THAT CAME OUT
BUT I, BUT I KNOW THERE WAS AT
LEAST 75 MILLION ALLOCATED TO
CLEAN CARS. FOR ALL THE PROBLEM
IS, IS THAT THERE'S IT'S LUMPED
IN WITH CLEAN CARS FOR ALL AND
OTHER EQUITY PROGRAMS, WHICH
INCLUDE A SUITE OF OTHER
PROGRAMS, BUT BUT I BELIEVE IT'S
ON THE ORDER OF, UH, 125 MILLION
FOR THE UPCOMING BUDGET YEAR.
OKAY UM, YOU KNOW, I THIS HAS
BEEN ONE OF MY ISSUES WITH ALL
THIS, UH, WITH ALL THESE
CLEANING ENERGY INITIATIVES WHEN
YOU'RE TALKING ABOUT WHETHER
YOU'RE TALKING ABOUT TV OR SOLAR
PANELS OR BATTERY THERE YOU HAVE
THE EARLY ADOPTERS. AND THEN YOU
HAVE COMMUNITIES THAT ARE
SUFFERING THE MOST FROM AIR
POLLUTION AND WOULD SUFFER THE
MOST FROM CLIMATE CHANGE. UH
THEY'RE JUST NOT BENEFITING, SO
IT'S NOT JUST ABOUT OFFERING THE
TAX INCENTIVE, BUT REALLY
THINKING THROUGH HOW DO YOU GO
INTO THOSE COMMUNITIES AND MAKE
SURE THAT PEOPLE KNOW WHAT IS
AVAILABLE TO THEM AND MAKE IT
REALLY EASY. WE'VE WE'VE HEARD
ABOUT SOME PROGRAMS GOING IN AND
BASICALLY, THERE'S A YOU KNOW A
FEW TABLES THAT SAY ALL RIGHT
HAND THE HAND THE KEYS OVER FILL
THIS PAPERWORK OUT, AND HERE'S
HERE'S YOUR NEW KEYS, AND IT
NEEDS TO BE SOMETIMES SOMETHING
ALONG THOSE LINES BECAUSE OFTEN
THERE ARE LANGUAGE BARRIERS, BUT
WE ARE NOT GOING TO MEET OUR
CLIMATE GOALS UNTIL WE ARE
REALLY, UH. IN IN THOSE
COMMUNITIES THAT ARE MOST
AFFECTED, SO I COMMEND YOU FOR
WORKING ON THIS ISSUE. IT'S IT
IS REALLY IMPORTANT. AND WITH
THAT, WOULD YOU LIKE TO CLOSE?
THANK YOU, MADAM CHAIR. I WOULD
JUST YOU BASICALLY CLOSED FOR ME
BECAUSE IT'S EXACTLY WHY WE'RE
DOING THESE TWO BILLS I UNISON
TOGETHER. THE LANGUAGE BARRIERS
ONE ISSUE THAT I'VE BEEN HEARING
ALL UP AND DOWN THE STATE. UM IT
WOULD BE SUCCESSFUL IF WE HAD A
LOT OF THESE PROGRAMS IN VARIOUS
LANGUAGES. I THINK IN PLACES
THAT NEEDED IT THE MOST. SO UM,
I THANK YOU FOR YOUR COMMENTS. I
THINK THE COMMITTEE AS WELL AND
I RESPECTFULLY ASK FOR MY VOTE.
ALL RIGHT, AND, UM
ASSEMBLYMEMBER'S BOOM 125
MILLION FOR CLEAN CARS FOR ALL
THIS IS CORRECT. SOUNDED RIGHT
TO ME, BUT I CHECKED WITH THE 1
125,000,025. I WAS JUST CURIOUS
BECAUSE AT ONE POINT THERE WAS I
THOUGHT I HEARD 10 BILLION AND I
THOUGHT, WHOA! THAT'S QUITE A
COMMITMENT OVERALL PACKAGE
OVERALL. WELL THANK YOU VERY
MUCH FOR YOUR PRESENTATION.
THANK YOU VERY MUCH. WHAT IS THE
VALUE OF YOU MANAGE YOUR 4% OF
100 MILLION UM, WHAT IS THE
ACTUAL BREAK? HOW MUCH DO THOSE
CARS COST ALTOGETHER BECAUSE
IT'S GOING TO THEN BE HIGHER
THAN FOUR MILLION IF THE CAR'S
SÜ SELLING FOR 30,000 AND THAT'S
A GOOD POINT. UM SO IT'S THREE
OR FOUR TIMES HIGHER. I'M
LOOKING AT MY NOTES HERE AND SO
IN THIS IS FOR THE BAY AREA, SO
I CAN'T DISTRICTS BUT SO THE
AVERAGE INCENTIVE IS $8500. UM
WHILE THE AVERAGE CAR PURCHASED
IN THE PROGRAM IS $28,000, AND
SO THAT'S ABOUT THREE A LITTLE
OVER THREE TIMES, MAYBE IT'S 12
MILLION RATHER THAN FOUR. BUT
WHATEVER IT'S CLOSE ENOUGH, IT'S
NOT A LOT OF MONEY. THANK YOU.
QUÊ OKAY. SHALL WE GO THROUGH?
ALRIGHT THIS TIME WILL START IN
THE IN THE RIGHT DIRECTION.
START WITH THE CONSENT CALENDAR.
FOLLOWING ABSENTEES REVIS.
RIVAS? AYE. AND THEN 5 18. AND
THEN, UH, SP 5 18, SENATOR
LAIRD. REVIS? AYE. AH SP 967
HERTZBERG. WOOLEN RIVAS RIVAS.
AYE. AND SB 989 HERTZBERG.
NGUYEN. I MEAN, I IT'S OKAY.
RIVAS RIVAS? AYE. IS IT BACK TO
COMMITTEE? THANK YOU FOR JOINING
US. ALL RIGHT. DO WE HAVE
ANYTHING ELSE? THAT'S IT. I
DON'T BELIEVE MR. ALL RIGHT. AND
WITH THAT WE WILL ADJOURN.