THE ASSEMBLY BANKING AND FINANCE
COMMITTEE IS CALLED TO ORDER
SERGEANTS, WOULD YOU PLEASE
REACH OUT TO ABSENT MEMBERS AS
WELL AS THOSE TO PRESENT AND
INVITE THEM CORDIALLY TO OUR
BANKING PARTY HERE. IN ROOM 444
. WE DO NOT OBVIOUSLY HAVE A
QUORUM AND JUST TO SAY, FOLKS,
THIS HAS BEEN A VERY HECTIC DAY
SCHEDULES ARE PULLING PEOPLE AND
MULTIPLE DIFFERENT WAYS. SO WITH
THAT, WELCOME TO THE ASSEMBLY
BANKING AND FINANCE COMMITTEE,
WHETHER YOU'RE HERE IN PERSON,
WHETHER YOU'RE WATCHING
VIRTUALLY I AM GRATEFUL THAT YOU
HAVE JOINED US HERE IN ROOM 4 44
. AND TODAY WE WILL ALLOW
TESTIMONY IN PERSON ALSO WANT TO
NOTE THAT WE ARE ACCEPTING
WRITTEN TESTIMONY THROUGH THE
POSITION LETTER PORTAL ON THE
COMMITTEE'S WEBSITE. ALSO I DO
WANT TO ANNOUNCE THAT SIMILAR
MEMBER PAPIN IS FILLING IN FOR
ASSEMBLYMEMBER'S WILSON TODAY,
SOMEONE REMEMBERED HAPPENED.
WELCOME TO THE BEST COMMITTEE
AND ANYWAY GLAD TO HAVE YOU WITH
US. I ALSO WANT TO ANNOUNCE THAT
FINAL ITEM NUMBER TWO SB 401
LEMON IS PULLED FROM THE
COMMITTEE BY THE AUTHOR. TODAY'S
AGAIN TODAY SCHEDULES IS HECTIC
. SO WE ARE LOOKING FOR A
QUORUM. WE DON'T HAVE ONE YET
MEMBERS IF YOU'LL COME AND THEN
ALSO, WE'RE WAITING FOR
PRESENTERS. AH ONCE THEY GET
HERE, WE'LL MOVE ON WITH THE
HEARING WILL GIVE THEM A FEW
MORE MINUTES. TO RACE OVER HERE
FROM THE SWING SPACE.
WELCOME, SENATOR. THANKS. WE ARE
SO GLAD TO SEE YOU. I'M VERY
GLAD TO BE HERE EVEN THOUGH WE
SHOULD BE HAVING A BUDGET
COMMITTEE, BUT IT'S OKAY. IN MY
WITNESSES COME TO THE TABLE. IS
THAT ALL RIGHT? ABSOLUTELY.
WITNESSES. YOU CAN COME TO THE
TABLE. THANK YOU. COMMITTEE FOR
YOUR PATIENTS. I'M HERE TO
PRESENT SP 54. SB 54 RECOGNIZES
THAT IF YOU'RE NOT PRENEURS. AND
YOU HAVE A STARTUP YOU'RE
DEPENDENT ON VENTURE CAPITAL
INVESTMENTS. TO BE SUCCESSFUL
WITH YOUR STARTUP. BUT IF YOU
ARE A BLACK ENTREPRENEUR OR A
WOMAN ENTREPRENEUR. PRIMARILY
BUT ALSO OTHER ENTREPRENEURS OF
COLOR. YOUR LIKELIHOOD TO GET
FUNDING FROM A VENTURE CAPITAL
FIRM. IS PRETTY, UH, IT'S LOW,
WHICH JUST PUT IT THAT WAY. VERY
LOW. AND UM, I WILL LET MY
WITNESSES GIVE YOU SOME OF THOSE
STATISTICS. BUT WHAT THIS BILL
DOES ITS SIMPLE TRANSPARENCY
MEASURE. IT ASKS THAT OUR
VENTURE CAPITAL FIRMS REPORT TO
US EVERY YEAR AND GIVE US DATA
ON THEIR INVESTMENTS SO THAT AND
THERE'S NO. UM THERE'S NO
PENALTY. WE DON'T WE DON'T SAY
YOU MUST MEET A CERTAIN
INVESTMENT PROFILE. IT'S JUST
FOR US TO BE ABLE TO SEE WHAT'S
THE PORTFOLIO DIVERSITY OF THEIR
INVESTMENTS? AND BY THAT WE'RE
HOPING THAT AS OTHER
TRANSPARENCY MEASURES HAVE IT
WILL MOTIVATE SUCH FIRMS TO DO
THE RIGHT THING. SO NOW I WOULD
LIKE MY WITNESSES TO SPEAK TO IT
, AND I'M GOING TO ALLOW THEM TO
INTRODUCE THEMSELVES SINCE I RAN
OVER HERE AND I WILL MESS UP
THEIR NAMES AND I DON'T WANT TO
DO THAT, SO I WILL ALLOW THEM TO
INTRODUCE THEMSELVES. THANK YOU,
SENATOR SKINNER JUST BEFORE THE
WITNESSES SPEAK. JUST WANTED TO
CONFIRM THAT YOU DO ACCEPT THEM
AMENDMENTS. YES I DO. AND THIS
IS FOR FILE ITEM NUMBER ONE SB
54 CORRECT WITNESSES. PLEASE
INTRODUCE YOURSELF AND TWO
MINUTES EACH. THANK YOU. THANK
YOU, SENATOR SKINNER. UM GOOD
AFTERNOON CHAIR AND MEMBERS OF
THE COMMITTEE. MY NAME IS DEREK
ALI. I AM A SELF TAUGHT MULTI
GRAMMY AWARD WINNING AUDIO
ENGINEER FROM THE CITY OF
GARDENA, CALIFORNIA. MENTORED BY
THE LIKES OF LEGENDARY MUSIC
PRODUCER DR DRE. I HAVE BEEN
FORTUNATE TO HAVE BEEN PART OF
SOME OF THE BIGGEST AND MOST
INFLUENTIAL HIP HOP ALBUMS OVER
THE PAST DECADE. I AM ALSO
FOUNDER AND CEO OF ENGINEERS OF
VERTICAL SOFTWARE PLATFORM FOR
RECORDING ARTISTS, AUDIO
ENGINEERS AND MUSIC PRODUCERS
AND RECORD LABELS. FACILITATING
DISCOVERY COMMUNICATIONS PROJECT
MANAGEMENT PAYMENTS AND
DISTRIBUTION SOLUTIONS. MUSIC
TECH STARTUPS SETTING OUT TO
SOLVE THE PROBLEMS THAT I
EXPERIENCED FIRSTHAND THROUGHOUT
MY OWN CAREER. FROM HUMBLE
BEGINNINGS TO WORLDWIDE ACCLAIM
AND RECOGNITION. YOU CAN IMAGINE
THE FRICTION ADVERSITY THAT I'VE
HAD TO OVERCOME IN ORDER TO MAKE
IT HERE TODAY. WHEN I MADE THE
DECISION TO PUT WOMEN WINNING
GRAMMYS IN THE BACK SEAT TO
START BY NEXT CHAPTER AS A MUSIC
TECHNOLOGY STARTUP FOUNDER THE
SUPPORT I RECEIVED FROM MY
INDUSTRY WAS OVERWHELMING DUE TO
THE FACT THAT I AM THE PERFECT
CANDIDATE TO BUILD IN THIS
SPACE. IT WAS ONLY UNTIL MEETING
WITH VENTURE CAPITAL IS WHEN I
WAS FACED WITH QUESTIONS THAT
EXPRESSED DOUBT OF MY ABILITY TO
LEAD AND EXECUTE ON OUR GOALS
AND VISIONS, DESPITE MY DEEP
BACKGROUND AND PERSONAL SUCCESS
IN THIS SPACE THAT I'M BUILDING
IN AS WE ALL KNOW, BLACK
ENTREPRENEURS TYPICALLY RECEIVED
LESS THAN 2% OF ALL VC DOLLARS
EACH YEAR, WHILE COMPANIES LED
BY BLACK WOMEN RECEIVE LESS THAN
1. NOW KNOWING THIS TYPE OF DATA
AND EXPERIENCING FIRSTHAND THE
NEGATIVE INTERACTIONS WITH
VENTURE CAPITAL COULD IF NOT
ALREADY HAVE DISCOURAGED THE
LEADERS OF TOMORROW, COMPLETELY
DERAILING THEIR JOURNEYS. THAT
COULD VERY WELL BE ONE THAT
WOULD CHANGE THE WORLD. NOW
ENGINEERS WILL ENABLE MILLIONS
OF MUSIC CREATORS ACROSS AMERICA
TO MONETIZE THEIR ART AND
PASSION, DEMOCRATIZING MUSIC
CREATION, MAKING THE MUSIC
BUSINESS MORE EQUITABLE FOR ALL
NOW, I MIGHT BE TENACIOUS ENOUGH
TO GO THROUGH THE OBSTACLES OF
RAISING VENTURE CAPITAL. BUT HOW
MANY OF US AREN'T I'M NOT HERE
TODAY ASKING TO ENABLE ANY
HANDOUTS, BUT I'M ALSO NOT
ASKING FOR ANYTHING MORE OR LESS
THAN WHAT WE DESERVE, WHICH IS
TRANSPARENCY THAT THIS BILL WILL
OFFER TO PROVIDE US A FAIR
OPPORTUNITY TO ADD VALUE TO OUR
COMMUNITIES. AND THAT'S WHY I'M
HERE TODAY TO TESTIFY AND
SUPPORT OF SENATE BILL 54. THANK
YOU FOR YOUR TIME AND THANK YOU
FOR YOUR PASSIONATE TESTIMONY
GREATLY APPRECIATED AS TRAVELED
, LIKE TO ESTABLISH CORUM.
EXCELLENT THAT GOES AROUND HERE
WHEN A CRAB WHILE IT'S HERE, I
WILL INTRODUCE THE SECOND SO WE
DO HAVE A QUORUM AND SO,
SECRETARY, PLEASE CALL ROLL.
JASON HERE. IN HERE. CHEN CHEN
HERE, BARICAN. CERVANTES. DIXON
DIXON HERE, MIKE FONG FONG HERE,
GABRIEL. GABRIEL HERE POPPING
HAPPENING HERE, PETRIE-NORRIS.
BETWEEN NORTH HERE, SORIA. SORRY
HERE, WALDRON. WEEKS. OKAY WE
HAVE ESTABLISHED A QUORUM AND
SENATOR SKINNER. WOULD YOU LIKE
TO INTRODUCE YOUR NEXT WITNESS
HERE AT THE DICE? UM, YES. THANK
YOU. SO I HAVE DEVIA UM READY.
WHO WILL BE MY NEXT WITNESS,
AND, UH, WELL, LET HER PROCEED.
GOOD AFTERNOON CHAIR AND MEMBERS
. MY NAME IS DAVID ALREADY I AM
ONE OF THE FOUNDING PARTNERS OF
THE F FIVE COLLECTIVE, WHICH IS
A VENTURE FUND THAT INVESTS
SOLELY ENVIRONMENT FOUNDERS. I'M
HERE TO SUPPORT SP BILL 54.
ACCESS TO CAPITAL IS THE
LIFEBLOOD OF EVERY ENTREPRENEUR
, REAL AND ENDEAVOR.
UNFORTUNATELY WOMEN
ENTREPRENEURS RECEIVED
SIGNIFICANTLY LESS VENTURE
FUNDING COMPARED TO THE MALE
COUNTERPARTS DESPITE ARE
PERFORMING THEM. STUDIES HAVE
SHOWN ACCORDING TO TECHCRUNCH IN
2021 TEAMS WITH ONLY WOMEN
RECEIVED ONLY 1.9% OF THE WINTER
FUNDING. BUT WHEN MALE TEAM
MEMBERS WERE INCLUDED THE PERSON
THEY JUMPED TO 17.2% AND THAT
TREND HAS BEEN CONSISTENT FOR
OVER A DECADE. I'M A WOMAN OF
COLOR WITH BACKGROUND IN CAPITAL
AND BANKING AND CAPITAL IN THE
BANKING CAPITAL MARKETS
CONSISTENTLY FACE DISCRIMINATION
WHEN I STEPPED UP FOR LEADERSHIP
ROLES, I'VE BEEN TOLD
CONSISTENTLY THAT I DON'T HAVE
THE RIGHT EXPERIENCE, BUT WHEN
MY MALE COUNTERPARTS WERE
APPLAUDED FOR TAKING ON NEW
CHALLENGES, RIGHT OR WHEN I WAS
ASSERTIVE I'VE BEEN LABELED AS
AGGRESSIVE. THESE EXPERIENCES
AND MORE HAVE LED ME TO START ON
MY ENTREPRENEUR JOURNEY TWO
YEARS AGO, IN ADDITION TO BEING
A PARTNER AT THE F FIVE
COLLECTIVE CO FOUNDER OF PERIOD,
WHICH IS A FINANCIAL TECHNOLOGY
STARTUP THAT LETS ENTREPRENEURS
FROM DIVERSE BACKGROUNDS RAISE
CAPITAL FUNDING DISPARITIES
BECOME EVEN MORE EVIDENT AT THE
CROSS SECTION OF GENDER AND
RACE. RESEARCH BY PROJECT DIANE
REVEALED THAT BLACK WOMEN
FOUNDERS RECEIVED A MERE 0.00
BIGGER OR 6% OF TOTAL VENTURE
FUNDING BETWEEN 2009 AND 17.
SUCH GLARING INEQUALITIES
PERPETUATE DISPARITY, STIFLING
THE POTENTIAL FOR TALENTED WOMEN
ENTREPRENEURS AND HINDERING
ECONOMIC GROWTH. I WILL WRAP UP
BY SAYING TRANSPARENCY AND
ACCOUNTABILITY ARE KEY TO
REFORM. VENTURE FUNDS PLAY A
CRITICAL ROLE IN DRIVING,
INNOVATION, JOB AND WEALTH
CREATION, AND THEY HOLD THE
POWER TO FUND THESE COMPANIES.
THIS BILL URGES THESE FUNDS TO
JOIN US IN ADDRESSING THESE
FUNDING DISPARITIES TAKE PRIDE
IN THE DECISIONS, BE TRANSPARENT
AND SHARE IT WITH THE WORLD.
THAT'S ALL WE ASK. NOTHING MORE
. NOTHING LESS. THANK YOU. SO WE
HAVE A MOTION SIMILAR MORATORIA
SECONDED BY SIMILAR MEMBER PHªN.
AND THANK YOU FOR YOUR TESTIMONY
. DO WE HAVE ANY ADDITIONAL
WITNESSES IN SUPPORT IN THE
HEARING ROOM, JUST STEP UP TO
STEP UP TO THE MICROPHONE. STATE
YOUR NAME, ORGANIZATION AND
POSITION, PLEASE. AFTERNOON MR
CHAIR, REMEMBERS TIM VALDERRAMA
WITH THE VITAMIN GROUP ON BEHALF
OF NEXT GEN. CALIFORNIA WE WANT
TO THANK THE AUTHOR AND THE
SPONSOR FOR BRINGING THIS
FORWARD. WE'RE IN STRONG
SUPPORT. THANK YOU. SEEING NO
OTHER WITNESSES, AND I DON'T
DON'T BELIEVE WE HAVE ANY LEAD
WITNESSES IN OPPOSITION. ANY
WITNESSES IN OPPOSITION IN THE
ROOM SEEING NONE WILL BRING IT
BACK TO THE COMMITTEE. ANY
QUESTIONS OR COMMENTS FROM
COMMITTEE? YES A SIMILAR MEMBER
PETRIE-NORRIS JUST WANT TO SAY
THANK YOU, SENATOR FOR BRINGING
THIS BILL FORWARD AND THANK YOU
TO YOUR WITNESSES FOR TESTIFYING
. I THINK IN THIS STATISTICS
THAT YOU SHARED ARE REALLY
SHOCKING. I'M JUST SHOCKING AND
I THINK SOMETIMES WE KNOW WHAT
GETS MEASURED, GETS DONE AND
JUST SHINING A LIGHT ON
PRACTICES AND MAKING FOLKS KIND
OF SCRATCH THEIR HEAD ABOUT WHY
, UH, THERE'S NUMBERS ARE SO
RIDICULOUS CAN START TO CHANGE
SOME OF THOSE PATTERNS. SO THANK
YOU. SEEING NO OTHER COMMENTS OR
QUESTIONS FROM COMMITTEE MEMBERS
. THIS RECOMMENDATION IS DO PASS
AS AMENDED TO THE JUDICIARY
COMMITTEE. THOSE AMENDMENTS ARE
DESCRIBED IN THE ANALYSIS WITH
THAT SECRETARY, WILL YOU PLEASE
CALL THE CLOTHES? I AM SO SORRY
, SENATOR, YOU MAY CLOSE. YES
THANK YOU. I APPRECIATE YOU'VE
ALREADY GOT AN EMOTION AND I
KNOW NOT TO TALK PAST ONES. YES.
BUT I JUST WANTED TO. UM I THINK
OUR WITNESSES SPOKE FOR
THEMSELVES, BUT I THINK YOU CAN
SEE FROM THE CALIBER OF THE
WITNESSES THAT MR REALLY HAVING
GIVEN THE SUCCESS HE'S HAD IN
THE INDUSTRY, WHICH IS GIVEN HIM
THEN THE ABILITY TO EARN THE
TYPE OF MONEY THAT COULD
REINVEST IN HIMSELF. HAD HE NOT
. WHERE WOULD HE HAVE GOTTEN THE
INVESTMENTS TO DO? THE KIND OF
THE SOFTWARE AND THE OTHER WORK
THAT HE'S DONE. AND THEN AS WE
HEARD WITH THE F SIX COLLECTIVE
FORMING WHAT THE THESE ARE TWO
EXAMPLES OF IS WHERE EITHER
WOMEN OR BLACK ENTREPRENEURS WHO
ARE ABLE TO GENERATE SOME WEALTH
THAT AGAINST ALL ODDS, THEN IN
SEEING THAT THERE'S NO OTHER
INVESTMENTS FOR COLLEAGUES LIKE
THEM, THEY START THEIR OWN
INVESTMENT FIRMS. AND THAT HELPS
, BUT IT'S NOT ENOUGH. AND SO
THIS BILL IS AIMED AT CORRECTING
THAT. AND JUST IN MY I SAID THAT
THERE WAS NO PENALTY. THERE IS
NO REQUIREMENT ON THE FIRM'S FOR
MEETING ANY KIND OF DIVERSITY OF
INVESTMENTS. UM BUT THERE IS
THEY ARE EXPECTED TO REPORT SO
THERE IS A CONSEQUENCE IF THEY
DO NOT REPORT BUT THERE IS NO
REQUIREMENT ON WHAT THEY MEET IS
PURELY TRANSPARENCY WITH THAT. I
ASK FOR YOUR VOTE. THANK YOU SO
MUCH SENATOR FOR THOSE CLOSING
COMMENTS, AND WITH THAT WE WILL
GO TO SECRETARY TO CALL ROLL. SB
54. THE MOTION IS DUE PASS AS
AMENDED AND REFERRED TO
COMMITTEE ON THE JUDICIARY.
GRAYSON. HI I CHEN CHEN NOT
VOTING. BARICAN. CERVANTES
DIXON. DIXON. NO. LIKE FONG.
LIKE FUNGI. GABRIEL GABRIEL I
HAPPEN HAPPENED. I PETRIE-NORRIS
PETRIE-NORRIS. AYE SORIA. SORRY
I WALDRON WICKS. WICKS I SEVEN
VOTES. BILL HAS SEVEN VOTES, WE
WILL KEEP THE ROLE OPEN FOR
ABSENT MEMBERS, AND IT DOES GET
OUT. THANK YOU. NEXT I SEE
SENATOR. IS THAT SENATOR NEWMAN
? THINK? YES, PLEASE. SURE I'M
GONNA BE PRESENT ON BEHALF OF
SIMPLE CHOIR. YES. IF YOU WOULD
LIKE TO DO THAT. FILE ITEM
NUMBER THREE SB 4 55. THE
RECOMMENDATION IS DO PASS AS
AMENDED TO JUDICIARY COMMITTEE.
THOSE AMENDMENTS ARE DESCRIBED
IN THE ANALYSIS SENATOR NEWMAN
YOU ARE PRESENTING ON BEHALF OF
SENATOR MCGUIRE, PLEASE. TRUE
THANK YOU, MR CHAIR. I'M THIS IS
MY WAY OF TAKING THE
TEMPERATURE, SEEING VERY GOOD
MOOD WITH YOUR I'LL DO MY BILL
AFTER THIS, UM SO THANK YOU FOR
YOUR AND YOUR STEPS ON BEHALF OF
SIN MCGUIRE FOR YOUR STEPS.
INCREDIBLE WORK ON US BEFORE 55
. IF YOU KNOW SENATE MAGUIRE.
THAT'S THE WORD HE WOULD USE. SP
4 55 IS A COMMON SENSE PIECE OF
LEGISLATION THAT WILL PROTECT
FIRE ANOTHER DISASTER SURVIVORS
AND HELP KEEP THEIR HOME
REBUILDS ON TRACK. TENS OF
THOUSANDS OF CALIFORNIA HAVE
LOST THEIR HOMES AND BUSINESSES
TO WILDFIRES OVER THE LAST EIGHT
YEARS SINCE 2015 OVER 42,000
HOMES, BUSINESSES AND OTHER
STRUCTURES HAVE BEEN DAMAGED OR
DESTROYED BY MEGA FIRES. NOT
ONLY DO THESE SURVIVORS HAVE TO
DEAL WITH THE TRAUMATIC AND LIFE
CHANGING EXPERIENCE OF LOSING
THEIR HOMES, BUT THEY ALSO HAVE
TO BEGIN THE CHALLENGING TASK OF
REBUILDING THEIR HOMES AND
LIVES. THESE SURVIVORS HAVE TO
BALANCE COORDINATING WITH THEIR
INSURANCE COMPANY ON
SETTLEMENTS, ORGANIZING
CONTRACTORS AND GETTING SIGNED
OFF FROM THEIR MORTGAGE COMPANY
DURING THE REBUILD PROCESS.
SURVIVORS WORK CLOSELY WITH THE
MORTGAGE COMPANY TO NEGOTIATE
THE TERMS OF THE REBUILD,
WORKING OUT IMPORTANT DETAILS
LIKE THE SIZE OF THE HOMES
FOOTPRINT, WHICH HELPS DICTATE
THE PAYMENT SCHEDULE AFTER THESE
LOGISTICS ARE AGREED UPON BY
BOTH THE SURVIVOR AND THE
MORTGAGE COMPANY THAT SURVIVOR
INTEREST INTO CONTRACTS WITH A
BUILDING CONTRACTOR TO BEGIN THE
REBUILDING PROCESS. IT IS A
COMMON PRACTICE FOR A MORTGAGE
COMPANY TO SELL OR TRANSPORT
TRANSFER HOMEOWNER MORE EXIST TO
OTHER MORTGAGE COMPANIES DURING
THE REBUILD PROCESS. THE
MAJORITY OF THESE MORTGAGE SALES
AND TRANSFERS ARE
STRAIGHTFORWARD AND SEAMLESS.
BUT NOT ALL THERE HAVE BEEN
HUNDREDS OF CASES WHERE HE
REBUILD IS UNDERWAY AND THE
MORTGAGES SOLD. THE NEW MORTGAGE
COMPANY CHANGES THE TERMS. FOR
EXAMPLE, SOME NEW MORTGAGE
COMPANIES HAVE ADDED ADDITIONAL
TERMS TO EXISTING REBUILD
AGREEMENTS, SUCH AS REQUIRING
MORE INFORMATION AND INSPECTIONS
, SIGNIFICANTLY DELAYING THE
PAYOUT AND DELAYING THE REBUILD
FOR MONTHS IN OTHER CASES, WHERE
THE HOMEOWNER WAS UNDER INSURED
ON THE ORIGINAL MORTGAGE COMPANY
HAD SIGNED OFF ON A REBUILD OF A
SMALLER HOUSE, THE NEW MORTGAGE
COMPANY DID NOT HONOR THAT
AGREEMENT. THE NEW COMPANY
REFUSED TO RELEASE ALL THE
REMAINING FUNDS BECAUSE THE
REBUILD WAS DIFFERENT FROM THE
LOST HOME. THESE DELAYS JUST HAD
INSULT TO INJURY FOR THESE
DISASTROUS SURVIVORS THAT HAVE
ALREADY BEEN THROUGH HELL AND
BACK. SURVIVORS HAVE BEEN FORCED
TO LIQUIDATE PENSIONS AND USE UP
THEIR HARD EARNED SAVINGS TO
FINISH REBUILDING THEIR HOMES
WHEN THEIR INSURANCE FUNDS ARE
WITHHELD BY THE MORTGAGE COMPANY
OR DEFAULT ON THEIR CONTRACTS.
WHEN THEY ENTERED INTO THEM IN
GOOD FAITH. I'VE JUST
DISCUSSIONS WITH THEIR ORIGINAL
MORTGAGE COMPANY, EVEN IF THEY
EVENTUALLY RECEIVE ALL OF THEIR
INSURANCE FUNDS, WHICH IS NOT
ALWAYS HAPPENED. SURVIVORS OFTEN
ARE NOT MADE WHOLE SB 4 55 WILL
MAKE SURE ANY AGREEMENTS MADE
BETWEEN HOMEOWNERS AND THEIR
MORTGAGE COMPANY ON THE
REBUILDING OF THEIR HOME AFTER
DISASTER. I DISCLOSED TO THE NEW
COMPANY IF THE MORTGAGES SOLD
AND REQUIRES THAT THE NEW
FINANCIAL INSTITUTION ARE THE
ORIGINAL AGREEMENT, ENSURING
THAT THESE EXISTING REBUILD
AGREEMENTS ARE HONORED WHEN
MORTGAGES ARE SOLD IS JUST
COMMON SENSE. THE AUTHOR HAS
BEEN ACTIVELY ENGAGED WITH ALL
STAKEHOLDERS, INCLUDING THE
CALIFORNIA BANKERS ASSOCIATION
OF CALIFORNIA MORTGAGE BANKERS
ASSOCIATION AND CALIFORNIA
COMMUNITY BANKING NETWORK ABOUT
REFINING THE LANGUAGE IN THE
BILL. DISASTER SURVIVORS ALREADY
FACED TREMENDOUS CHALLENGES TO
RECOVER FROM THE IMPACTS OF A
DISASTER AND SB 4 55 WILL GIVE
HOMEOWNERS CERTAINTY AND PEACE
OF MIND WHEN THEY REBUILD THEIR
HOMES AND LIVES HERE WITH ME AND
SUPPORT IS KENDALL JARVIS, LEAD
DISASTER RELIEF ATTORNEY WITH
THE LEGAL AID SOME SONOMA COUNTY
. I AM RESPECTFULLY ASKING FOR
YOUR VOTE ON BEHALF OF SENATOR
MCGUIRE. THANK YOU, SENATOR
NEWMAN. FOR EVERY WORD OF THAT
TESTIMONY, THAT'S WHAT HE GAVE
ME. THAT'S WHAT I GAVE. YOU
DON'T WANT TO SHORTCHANGE THE
AUTHOR OR IN STAFF FOR ALL OF
THEIR HARD WORK, BUT I PROMISE
TO BE BRIEF FROM THE SINGLE
LONGEST SENTENCE I'VE EVER HEARD
IN MY LIFE. YES PHONE. IS IT
ALRIGHT IF I TOUCH ME? YES. IF
YOU'D LIKE TO COME UP TO THE
TABLE TO TESTIFY, THAT'D BE
GREAT. WE NEED A LITTLE LIGHTEN
IT UP A LITTLE BIT. THANK YOU.
VERY COMMITTEE MEMBERS. THANKS
FOR HAVING ME TODAY. SO MY NAME
IS KENDALL JARVIS AND I'VE BEEN
THE LEAD DISASTER RELIEF
ATTORNEY FOR LEGAL AID OF SONOMA
COUNTY FOR THE PAST 5.5 YEARS.
I'M HERE TODAY TO EXPRESS LEGAL
AID SUPPORT FOR SENATE BILL 455
. THE INTENT OF SP 455 IS TO
ENSURE THAT SURVIVORS HAVE
DECLARED DISASTERS WHO
EXPERIENCED A TOTAL LOSS OF
THEIR HOME ARE ABLE TO REBUILD
WITHOUT THE TRANSFER OF THEIR
MORTGAGE. CAUSING ADDITIONAL
UNNECESSARY DELAYS DURING THE
REBUILDING REPURCHASE PROCESS,
WILL NOW READ A STATEMENT FROM A
CLIENT THAT DEMONSTRATES HOW
THIS ISSUE IMPACTS SURVIVORS. MY
NAME IS NINA. YOU, GILL AND I'M
WRITING TODAY TO EXPRESS MY
SINCERE SUPPORT FOR SENATE BILL
455, MY HUSBAND, OUR THREE SONS,
AND I LOST OUR HOME AS THE
RESULT OF THE SONOMA COMPLEX
FIRES IN 2017. SHORTLY AFTER
SUFFERING THAT LOSS, WE
DISCOVERED THAT WE WERE
SIGNIFICANTLY UNDERINSURED AFTER
WORKING WITH NUMEROUS
CONTRACTORS. WE WERE FINALLY
ABLE TO IDENTIFY A PLAN THAT
WOULD ALLOW US TO REBUILD.
SUBSEQUENTLY WE PRESENTED OUR
PLAN TO OUR MORTGAGE COMPANY,
AND THEY AGREED TO RELEASE THE
FUNDS ACCORDINGLY. WHEN WE
DECIDED TO REBUILD. WE KNEW THAT
WE WOULD HAVE TO USE ALL OF OUR
INSURANCE PROCEEDS AND CUT COSTS
TO DO SO. FOR THIS REASON, MY
FAMILY AND I MOVED INTO AN RV ON
OUR FRIENDS PARCEL WHILE WE WERE
REBUILDING BECAUSE WE DID NOT
HAVE THE FINANCIAL RESOURCES TO
PAY FOR TEMPORARY HOUSING THAT
WOULD ALLOW US TO KEEP OUR
CHILDREN IN THE SAME SCHOOLS. IT
IS IMPORTANT TO UNDERSTAND THAT
IT'S THAT WE SPENT SIGNIFICANT
TIME EFFORT AND ENERGY
NEGOTIATING WITH OUR INSURANCE
COMPANY AND IDENTIFYING A WAY
FORWARD THAT WOULD ALLOW US TO
REBUILD. ONCE WE IDENTIFIED A
WAY FORWARD, OUR INSURANCE AND
MORTGAGE COMPANY WERE BOTH MADE
WELL AWARE OF THE FACT THAT WE
WOULD HAVE TO USE ALL OF OUR
INSURANCE PROCEEDS TO REBUILD
AND BE LEFT PRECARIOUSLY HOUSED
UNTIL THE REBUILD WAS COMPLETE.
UNFORTUNATELY AFTER MY FAMILY
AND I ENTERED INTO A REBUILD
CONTRACT AND BEGAN THE PROCESS
OF REBUILDING WITH THE APPROVAL
OF OUR MORTGAGE COMPANY, OR
MORTGAGE WAS THEN TRANSFERRED TO
A NEW MORTGAGE SERVICER. AT THE
TIME OF MORTGAGE WAS TRANSFERRED
. OUR REBUILD WAS ROUGHLY 80%
COMPLETED AND ARE PROJECTED
MOVING DAY WAS ON THE HORIZON.
UNFORTUNATELY OUR NEW MORTGAGE
PROVIDER REFUSED TO RELEASE THE
FUNDS AS PREVIOUSLY AGREED,
WHICH COULD CAUSE SIGNIFICANT
DELAYS AND ULTIMATELY PUT MY
FAMILY AND ME IN A POSITION
WHERE WE WERE FORCED TO REMAIN
PRECARIOUSLY HOUSED AND FEARFUL
THAT WE MAY NOT BE ABLE TO
COMPLETE OUR REBUILD. IT IS MY
STRONG BELIEF THAT MY FAMILY AND
I NEVER SHOULD HAVE GONE THROUGH
THE TRAUMA ASSOCIATED WITH
LOSING OUR HOME AND THEN FACING
OBSTACLES LIKE THIS THAT WERE
ENTIRELY PREVENTABLE. MORTGAGES
SHOULD NOT BE TRANSFERRED IN A
MANNER THAT JEOPARDIZES THE
SURVIVORS ABILITY TO REBUILD,
ACCORDING TO AN EXISTING
CONTRACT. THE LOSS OF OUR HOME
ITSELF WAS INCREDIBLY PAINFUL,
BUT HONESTLY, IT IS LARGELY THE
PAIN AND SECONDARY TRAUMA FROM
ISSUES LIKE THIS THAT HAS NEARLY
BROKEN US. THIS IS WHY MY FAMILY
AND I WHOLEHEARTEDLY SUPPORT SB
455. WE DO NOT WANT TO SEE
ANOTHER FAMILY FACED THE SAME
UNNECESSARY TRAUMA DELAY. AND
FINANCIAL HARDSHIP WHEN IT
SHOULD BE SO EASY TO PREVENT.
SINCERELY NINA YOU, GAIL, AND
I'M HAPPY TO ANSWER ANY
QUESTIONS. IF ANYONE HAS ANY.
THANK YOU SO MUCH FOR YOUR TIME.
THANK YOU. SO MUCH FOR YOUR
TESTIMONY. ADDITIONAL WITNESSES
IN THE ROOM. SAYING NONE WE WILL
. I DON'T BELIEVE THERE'S
REGISTERED OPPOSITION. SO ANY
OPPOSITION IN THE ROOM? SEEING
NONE WILL BRING IT BACK TO THE
COMMITTEE ANY QUESTIONS OR
COMMENTS FROM COMMITTEE MEMBERS?
WE DO HAVE A MOTION AND A SECOND
SEEING NO QUESTIONS OR COMMENTS
. THIS AGAIN IS DO PASS AS
AMENDED TO JUDI JUDICIARY
COMMITTEE AND THOSE AMENDMENTS
ARE DESCRIBED IN THE ANALYSIS.
WOULD YOU LIKE TO CLOSE SENATOR?
I RESPECTFULLY ASK FOR YOUR I
VOTE. THANK YOU SO MUCH FOR
EVERY WORD OF THAT. CLOSING WITH
THAT SECRETARY. PLEASE CALL THE
ROLL. SB 455. THE MOTION IS DUE
PASS AS A MINUTE AND REFERRED TO
COMMITTEE ON JUDICIARY. GRAYSON
I, CHEN CHEN I TARAKAN CERVANTES
CERVANTES, I DICKSON DICKSON I
MIKE FONG FONG I GABRIEL EYE
POPPING UP AND I PETRIE-NORRIS
PETRIE-NORRIS EYES SORIA. SORRY
I WALDRON WICKS THAT HAS NINE
VOTES HAS NINE VOTES WILL KEEP
THE ROLE OPEN FOR ABSENT MEMBERS
IN THE BILL DOES GET OUT. THANK
YOU SO MUCH. AND SENATOR NEWMAN
. JUST STAY RIGHT THERE YOU HAVE
. OH, I WILL I HAVE I HAVE. I
HAVE A LOT MORE TO SAY. MR
CHEERS. NEXT BILL, ALRIGHT, YOU
HAVE ABOUT THREE OR FOUR MOTIONS
AND THE SAME NUMBER IN SECONDS.
THIS IS SB 4 84 FILE ITEM NUMBER
FOUR. OR RECOMMENDATION IS DO
PASS AS AMENDED TO THE
APPROPRIATIONS COMMITTEE. THOSE
AMENDMENTS ARE DESCRIBED IN THE
ANALYSIS. MR SENATOR NEWMAN,
PLEASE, MR CHAIR. I WAS UNDER
THE IMPRESSION THAT YOU FOLKS
GOT PAID BY THE HOUR. I AM NOW
CORRECTED AND I AM PLEASED. TO
PRESENT SB FOR 84, WHICH WOULD
ALLOW ESCROW AGENTS CALIFORNIA
TO WORK REMOTELY WITH THAT. LET
ME PRESENT MY WITNESS IN THE
INTEREST OF TIME. MR RON
KINGSTON, WHO HAS A STATEMENT IS
HAPPY TO ANSWER QUESTIONS. THE
BILL, I'M RESPECTFULLY ASKING
FOR AN IDEA. THANK YOU. MR CHAIR
MEMBERS. THE COMMITTEE RUN
KINGSTON, REPRESENTING THE
ESCROW INSTITUTE OF CALIFORNIA.
THEY ARE PRINCIPALLY WOMEN OWNED
SMALL BUSINESSES. WOMEN RUN
BUSINESSES, UM, IN THE SPIRIT OF
TIME. I'LL REMIND EVERYBODY THAT
MR NEWMAN MUST HAVE COMPLETED A
COURSE IN EVELYN WOOD ABOUT 50
YEARS AGO WHEN IT STARTED, UM
AND UNFORTUNATELY, DIDN'T QUITE
GET THERE HUB, BUT I WANT TO
THANK THE COMMITTEE, NOTABLY THE
COMMITTEE STAFF, MR CHAIRMAN.
AND ALSO OUR REGULATOR. THE
DEPARTMENT OF FAIR, UH, D F P I
THAT HAS BEEN IN THE SPIRIT OF
COOPERATION DEFINING THE GUARD
WHEELS OF REMOTE WORK. UM I
DON'T WANT TO WASTE THE
COMMITTEE'S TIME IF WE ARE HERE
TO ANSWER ANY DETAILED
QUESTIONS, SHOULD THE COMMITTEE
HAVE THANK YOU. THANK YOU TO THE
WITNESSES AND ANY ADDITIONAL
WITNESSES IN THE ROOM LIKE TO
STEP UP, SEEING NONE. NO LEAD
OPPOSITION. ANY WITNESSES IN THE
ROOM OPPOSED? SEE? NONE BRING IT
BACK TO THE COMMITTEE QUESTIONS,
COMMENTS. SEEING NONE. ALL
RIGHT, SENATOR, PLEASE. WOULD
YOU AGAIN? GLAD TO THANK YOU. NO
THANK YOU TO THE COMMITTEE FOR
THE AMENDMENT HAPPY TO ACCEPT
THOSE AMENDMENTS ASKING FOR MY
VOTE. THANK YOU. THANK YOU VERY
MUCH. WE DO HAVE A MOTION AND A
SECOND RECOMMENDATION DO PASS AS
AMENDED TO APPROPRIATIONS
COMMITTEE AMENDMENTS ARE
DESCRIBED IN THE ANALYSIS
SECRETARY. PLEASE CALL THE ROLL.
BEFORE READY FOR THE MOTION IS
DO PASS THE MINUTE AND REFERRED
TO THE TO THE APPROPRIATIONS
COMING BACK COMMITTEE. GRAYSON
GRAYSON, I CHEN CHEN I BARICAN
CERVANTES SURROUNDED BY DIXON.
HIÆN AYE, MIKE FONG FONG I,
GABRIEL. WRAPPING PAPER AND I
PETRIE-NORRIS PETRIE-NORRIS.
AYE, SORIA. SORRY, I WALDEN
WICKS. THAT HAS EIGHT BOATS.
THANK YOU. I LOOK FORWARD TO
SEEING YOU ALL IN FRONT OF MY
COMMITTEE. AT SOME POINT. THANK
YOU, SENATOR NEWMAN. WE LOOK
FORWARD TO BEING THERE. THAT
BILL DOES HAVE EIGHT VOTES. IT
GETS OUT, WE WILL KEEP THE ROLE
OPEN FOR ABSENT MEMBERS. UH
LET'S OPEN SECRETARY WOULD YOU
PLEASE GO THROUGH THE LIST? ITEM
NUMBER ONE SB 54. SB 54 MOTION
IS DUE PASSES A MINUTE REFERRED
TO COMMITTEE AND JUDICIARY.
BARICAN CERVANTES CERVANTES?
AYE. WALDEN. THAT HAS EIGHT
VOTES. IT HAS EIGHT VOTES. IT
DOES GET OUT. WE'LL CONTINUE TO
KEEP IT OPEN. UH
ASSEMBLYMEMBER'S WICKS ITEM
NUMBER ONE SB 54. SECURITY YOU
DID OKAY. SB 4 55 ITEM NUMBER
THREE. SB 4 55 EMOTIONS DO PASS
AS AMENDED AND REFERRED TO
COMMITTEE ON JUDICIARY. TARAKAN
WALDRON WICKS WEEKS I, THAT'S 10
VOTES. THE BILL HAS 10 VOTES IT
IS OUT AND WILL CONTINUE TO HOLD
IT. OPEN ITEM NUMBER FOUR. SB 44
. THE MOTIONS DO PASS AS UM AND
ANY REFERRED TO COMMITTEE ON
APPROPRIATIONS. BARICAN,
GABRIEL. WALDRON WICKS. ID HAS
NINE VOTES. BILL HAS NINE VOTES
. IT DOES GET OUT AS WELL. WE'LL
KEEP THE ROLE OPEN FOR ABSENT
MEMBERS. THANK YOU. SO I THINK
ABSENT AND STUFF. I DON'T THINK
. YEAH, NO, SHE'S NOT. OKAY
GABRIEL II Ó. MADAM SECRETARY
ITEM NUMBER. FOUR NUMBER FOUR. S
BEFORE 84 MOTION. Dð PASSES A
MINUTE TO REVERT COMMITTEE ON
APPROPRIATIONS. BARRICADED MAN,
GABRIEL GABRIEL HIGH, WALDRON
HAS 10 VOTES. I AM. NUMBER FOUR.
SB 4 84. THAT'S 10 VOTES. IT
GETS OUT OF COMMITTEE AND WE I
THINK I MIGHT HAVE ONE MORE TO
ADD ON. SECRETARY ITEM NUMBER
THREE SB 4 55. YES WE HAVE. WE
ARE FINISHED. HERE. WE HAVE
COMPLETED OUR AGENDA FOR TODAY'S
HEARING. WE WILL NOW ADJOURNED
SECRETARY WE'RE GOOD THERE. OKAY
WITH THAT ASSEMBLY BANKING AND
FINANCE COMMITTEE IS ADJOURNED.