THE ASSEMBLY, BANKING AND
FINANCE COMMITTEE IS CALLED TO
ORDER. SERGEANTS, IF YOU WILL,
PLEASE CALL THE ABSENT MEMBERS.
AND WE DO NOT OBVIOUSLY HAVE A
QUORUM. SO WE WILL BEGIN AS A
SUBCOMMITTEE. WELCOME TO THE
ASSEMBLY BANKING AND FINANCE
COMMITTEE. WHETHER YOU'RE HERE
IN PERSON OR WHETHER YOU'RE
WATCHING VIRTUALLY, I AM
GRATEFUL TO HAVE YOU JOIN US
HERE IN ROOM 444. I DO WANT TO
NOTE THAT WE ARE ACCEPTING
WRITTEN TESTIMONY THROUGH THE
POSITION LETTER PORTAL ON THE
COMMITTEE'S WEBSITE. I ALSO WANT
TO WELCOME BACK RETURNING
MEMBERS, OUR FANTASTIC VICE
CHAIR, ASSEMBLY MEMBER CHEN, AS
WELL AS ASSEMBLY MEMBER,
CERVANTES, ASSEMBLY MEMBER,
DIXON, ASSEMBLY MEMBER, FONG
ASSEMBLY MEMBER, PETRIE-NORRIS
AND ASSEMBLY MEMBER. SORIA I
ALSO WANT TO WELCOME OUR NEW
COMMITTEE MEMBERS, ASSEMBLY
MEMBER MAIENSCHEIN AND ASSEMBLY
MEMBER RUBIO AND WELCOME TO THE
COMMITTEE. I CONSIDER OURSELVES
VERY LUCKY TO HAVE AT LEAST OUR
TWO NEW MEMBERS JOINING OUR
EXISTING ONES, AND I'M LOOKING
FORWARD TO A PRODUCTIVE 2024
WITH THAT, IT IS TIME TO MOVE ON
TO THE HEARING. AND AGAIN, WE DO
NOT HAVE A QUORUM AS OF YET, BUT
WE ARE OPERATING AS A
SUBCOMMITTEE AND WE DO HAVE OUR
FIRST AUTHOR HERE. SO WHY DON'T
WE START WITH FILE ITEM NUMBER
ONE, AB 2031. THE RECOMMENDATION
IS DO PASS TO THE COMMITTEE ON
BUSINESS AND PROFESSIONS
ASSEMBLY MEMBER GIBSON, YOU ARE
THE AUTHOR OF 20 AB 2231. SORRY
ABOUT THAT. IT'S AB 2231 AND
ASSEMBLYMEMBER GIBSON, WHEN YOU
ARE READY, YOU CAN BEGIN WITH
YOUR OPENING STATEMENT. THANK
YOU VERY MUCH, MR. CHAIRMAN. AND
MEMBERS, I'M DELIGHTED TO BE
HERE WITH YOU TODAY, THANK YOU
FOR ALLOWING ME TO PRESENT
ASSEMBLY BILL, 2231, WHICH SEEKS
TO PROPOSE A MANDATE, A
MANDATORY CONTINUOUS EDUCATION
FOR, PAWNBROKERS IN CALIFORNIA.
AND THIS BILL IS SPONSORED BY
THE PAWNBROKERS ASSOCIATION OF
CALIFORNIA. THIS BILL WILL
REQUIRE THAT BEFORE RECEIVING A
LICENSURE, ALL UPON ALL,
PAWNBROKERS WOULD RECEIVE AT
LEAST EIGHT HOURS OF TRAINING
RELATED TO LAWS, LAWS,
REGULATIONS, BUSINESSES,
BUSINESS PRACTICES, CUSTOMER
SERVICE, SECURITY AND ETHICS.
THIS BILL WOULD ALSO REQUIRE
THAT EVERY TWO YEARS,
PAWNBROKERS WOULD GO THROUGH AN
ADDITIONAL CONTINUOUS EDUCATION
TO STAY UP TO DATE ON NEW
REGULATIONS. AND I JUST WANT TO
SAY THAT I'M PROUD OF THIS
INDUSTRY TAKING UPON THEMSELVES
IN ORDER TO IMPOSE SUCH
REGULATIONS, BUT ALSO THE
CONTINUOUS EDUCATION, BECAUSE
THIS INDUSTRY STARTED OUT WITH
ABOUT A THOUSAND PAWN SHOPS IN
CALIFORNIA AND NOW THEY HAVE
DWINDLED DOWN TO ABOUT 6 TO 700,
PAWNBROKERS AND MOST PAWNBROKERS
ARE MOM AND POP BUSINESSES. AND
SO THEY WANT TO MAKE SURE THAT
THEY ARE UP TO DATE ON WITH ALL
REGULATIONS AND LAWS, WHICH I
THINK IS MOVING IN THE RIGHT
DIRECTION. VERY FEW INDUSTRIES
TAKE IT UPON THEMSELVES TO ASK
FOR CONTINUOUS EDUCATION CREDITS
LIKE THIS, THIS MEANS THAT SMALL
BUSINESSES, SMALL BUSINESS
OWNERS ARE BEING FORGOTTEN ABOUT
, AND FALLING, FALLING BEHIND
BECAUSE OF WHAT'S TAKING PLACE,
IN OUR ECONOMY, AT THE SAME
TIME, CALIFORNIA IS FACING WITH
SOME OF THE MOST CHALLENGING
ECONOMIC ENVIRONMENTS IN RECENT
MEMORIES, LASTLY, PROJECTED SHOW
PROJECTED SHOWS THAT AT LEAST 9
MILLION HOUSEHOLDS IN THE UNITED
STATES ARE UNBANKED AND NEARLY A
THIRD HOUSEHOLDS HAVE CREDIT
SCORES BELOW 650, AND SOME OF
THEM MAY BE IN THIS ROOM TODAY.
BUT ANYWAY, AND SO THIS IS A
STEP IN THE RIGHT DIRECTION.
WHILE THIS BILL WOULD BE A
GROUNDBREAKING FOR CALIFORNIA,
WE HAVE ALREADY SEEN EXAMPLES OF
SIMILAR PROGRAMS THAT HAVE BEEN
SUCCESSFUL IN OHIO AND ALSO
MISSISSIPPI. IF WE WANT TO
CONTINUE TO TELL THE REST OF THE
NATION THAT WE ARE IN THE
FOREFRONT OF THE FIGHT, TO
RETAIN SMALL BUSINESS MOM AND
POP BUSINESSES, ASSEMBLY BILL
2231 IS ABSOLUTELY ESSENTIAL AND
THE RIGHT WAY TO GO WITH WITH ME
TO PROVIDE SUPPORTING
TESTIMONIES IN SUPPORT OF IS A
FAMILIAR FACE. FORMER CALIFORNIA
STATE SENATOR KATHLEEN GALGIANI,
WHO'S HERE AND ALSO, PAT ROBERT
ROGERS. ROGERS. ROGERS, WHO IS A
BOARD MEMBER FOR THE CALIFORNIA
PAWNBROKERS ASSOCIATION, WHO
WILL ALSO TESTIFY IN SUPPORT OF
THIS BILL. WONDERFUL. THANK YOU,
MR. GIBSON. AND WITNESSES. THANK
YOU SO MUCH. AND FIRST OF ALL, I
WANT TO START BY SAYING HOW
WONDERFUL IT IS TO BE BACK. AND
I THANK ASSEMBLY MEMBER GIBSON
FOR AUTHORING THE BILL FOR US. I
THANK YOU AND YOUR STAFF FOR ALL
THE WORK THAT YOU HAVE DONE AND
THE THOUGHTFUL ANALYSIS ON OUR
PROPOSAL, AS MENTIONED,
CALIFORNIA PAWNBROKERS WORKS TO
PROMOTE THE INDUSTRY AS A SAFE
AND RESPONSIBLE WAY FOR
CONSUMERS TO ACCESS SHORT TERME
CREDIT, AND ASSEMBLY MEMBER
GIBSON TALKED ABOUT THE UNBANKED
POPULATION THAT OUR BUSINESSES
LARGELY SERVE. NUMBER ONE, WHEN
YOU COME IN FOR A LOAN, THERE IS
NO CREDIT CHECK THAT'S DONE. SO
IF YOU HAVE NO CREDIT OR LOW
CREDIT, YOU ARE GUARANTEED A
LOAN. AND THAT'S PARTICULARLY
IMPORTANT FOR THOSE WHO HAVE
RUINED THEIR CREDIT IN THE PAST.
WHO OR WHO ARE JUST STARTING
OUT, SECONDLY, PAWNBROKERS OFFER
SMALL DOLLAR LOAN AMOUNTS. YOU
CAN'T REALLY GO TO A BANK AND
ASK FOR A LOAN OF $100 OR $300,
BUT YOU CAN GO INTO A PAWNSHOP
AND OFFER YOUR COLLATERAL AND
GET A SMALL DOLLAR LOAN LIKE
THAT. AND THEN FINALLY, FOR
THOSE THAT THAT HAVE SOME KIND
OF A FINANCIAL EMERGENCY, MAYBE
A CAR BREAKS DOWN OR THERE'S
BEEN A, A HEALTH ISSUE AND, AND
SOMEBODY NEEDS TO MAKE A MEDICAL
BILL PAYMENT. THE TRANSACTIONS
ARE IMMEDIATE. YOU CAN GO TO A
PAWNSHOP AND SAME DAY YOU CAN
RECEIVE THE LOAN THAT YOU NEED,
SO MANDATORY EDUCATION WILL
ESTABLISH AND MAINTAIN
PROFESSIONAL STANDARDS ESSENTIAL
TO PROTECTING BOTH CONSUMERS AND
PAWNBROKERS. AND WITH ME TODAY I
HAVE PAT ROGERS, WHO IS A PAST
PRESIDENT OF THE STATEWIDE
ASSOCIATION. AND HE'S LED THE
CONTINUING EDUCATION COMMITTEE
THAT STARTED LAST YEAR IN
JANUARY. AND WE'VE WORKED VERY
HARD TO COME UP WITH THE
PROPOSAL THAT IS BEFORE YOU
TODAY. THANK YOU. AND I ASK FOR
YOUR AYE VOTE, PAT ROGERS. THANK
YOU. MAY I BORROW THAT? THANK
YOU. KATHLEEN PAWNSHOPS IN
CALIFORNIA ARE AN IMPORTANT
FINANCIAL SAFETY NET FOR
INDIVIDUALS THAT DO NOT HAVE
ACCESS TO TRADITIONAL CREDIT,
LIKE SHORT TERME LOANS OR CREDIT
CARDS. PAWN LOANS ARE BASED ON
THE VALUE OF COLLATERAL, NOT ON
A CREDIT STORE, MAKING THESE
ACCESSIBLE TO INDIVIDUALS WITH
POOR OR NO CREDIT HISTORY, AND
IT DOES NOT AFFECT THEIR HISTORY
OR THEIR CREDIT WORTHINESS.
CREDIT SCORE. THIS BILL PROPOSES
THAT AS A CONDITION OF PRECEDENT
TO THE ISSUANCE OF A PAWNBROKER
LICENSE, AN APPLICANT SHALL
COMPLETE AT LEAST EIGHT HOURS OF
APPROVED PRE-LICENSING EDUCATION
. THIS BILL ALSO PROPOSES A
MINIMUM OF EIGHT HOURS OF
CONTINUED EDUCATION FOR ALL
PAWNBROKERS IN CALIFORNIA EVERY
TWO YEARS, COINCIDING WITH THE
PAWNBROKERS LICENSE RENEWAL, AB
2231 AUTHORIZED THE CREATION OF
A PAWNBROKER EDUCATION COUNCIL,
WHICH SHALL BE RESPONSIBLE FOR
CREATING THE EDUCATION
CURRICULUM, APPROVING PROVIDERS
AND INSTRUCTORS, TRACKING
COMPLETION OF COURSES AND
ISSUING CERTIFICATES OF
COMPLETION TO BE SUBMITTED TO
LOCAL LAW ENFORCEMENT ALONG WITH
THE NORMAL APPLICATIONS OF THE
LICENSURE OR RENEWAL. MANDATORY
EDUCATION WILL ENSURE THAT
PAWNBROKERS ARE UP TO DATE WITH
THE LATEST LAWS AND REGULATIONS.
THE POND INDUSTRY IS CONSTANTLY
CHANGING AND PAWNBROKERS NEED TO
BE AWARE OF THE NEW LAWS AND
REGULATIONS IN ORDER TO COMPLY
WITH THEM. PAWNBROKERS WHO ARE
BETTER EDUCATED IN A WIDER,
VARIETY OF ITEMS ARE AND
KNOWLEDGEABLE ENOUGH TO ASSESS
THEM, RECOGNIZE COUNTERFEITS ARE
BETTER ABLE TO SERVE THEIR
CLIENTS AND GIVE A BETTER VALUE
TO THEIR CLIENTS. SEE BENEFITS.
BOTH THE PAWNBROKER AND THEIR
CUSTOMERS. BEFORE I CLOSE, I'D
LIKE TO THANK THE COMMITTEE
STAFF FOR THEIR THOUGHTFUL
ANALYSIS, AND I'D LIKE TO TAKE A
MOMENT TO RESPOND TO ONE ISSUE
THAT WAS RAISED. IT WAS
REGARDING THE EXPANSION OF THE
CE REQUIREMENTS TO ALL STAFF. WE
ENVISIONED THAT THE COURSES
COULD BE MADE AVAILABLE TO ALL
STAFF ON A VOLUNTARY BASIS.
HOWEVER, WE BELIEVE THAT
MANDATED REQUIREMENTS, AT LEAST
INITIALLY, SHOULD APPLY TO THE
LICENSEE WHO IS RESPONSIBLE FOR
SETTING COMPANY POLICIES,
PROCEDURES, COMPANY WIDE AS WELL
AS TRAINING THEIR EMPLOYEES.
THAT BEING SAID, THE COUNCIL
COULD ALWAYS EXPAND EDUCATION
REQUIREMENTS FOR ADDITIONAL
STAFF THROUGH ITS BYLAWS. IN
CLOSING, I WISH TO REITERATE
THAT OUR GOAL WITH AB 2231 IS TO
ENSURE THE HIGHEST LEVEL OF
INTEGRITY WITHIN THE CALIFORNIA
POND INDUSTRY. ONCE AGAIN, I'D
LIKE TO THANK THE COMMITTEE
STAFF FOR THEIR THOUGHTFUL
ANALYSIS, AND I RESPECTFULLY ASK
FOR YOUR AYE VOTE. THANK YOU SO
MUCH FOR YOUR TESTIMONY. AND IT
IS VERY CLEAR THAT WE CAN
ESTABLISH A QUORUM AT THIS TIME.
SO WE'LL TAKE A BREAK FROM
TESTIMONY TO ESTABLISH THAT
QUORUM. MADAM SECRETARY, WILL
YOU PLEASE CALL ROLL? GRAYSON
HERE. CHEN SERVES ORTEZ DIXON.
MIKE FONG MAIENSCHEIN HERE.
PETRIE-NORRIS HERE. BLANCA
RUBIO, SORIA HERE. WONDERFUL. WE
HAVE ESTABLISHED A QUORUM. THANK
YOU FOR THE TESTIMONY THAT WE
HAVE HEARD. AND ALSO THANK YOU
FOR THAT CLARIFICATION AT THE
END OF YOUR TESTIMONY AS WELL.
HAVING SAID THAT, WE WILL MOVE
TO OTHER WITNESSES IN SUPPORT
THAT ARE IN THE HEARING ROOM. IF
THERE ARE ANY, PLEASE STEP
FORWARD, STATE YOUR NAME,
ORGANIZATION POSITION, SEEING NO
ONE RUNNING TO THE MICROPHONE,
WE WILL EXPEDITE CÁC MOVE TO
THAT, TO THOSE IN OPPOSITION, I
SEE NO REGISTERED OPPOSITION. DO
WE HAVE ANY, IN OPPOSITION IN
THE ROOM TO STEP FORWARD TO THE
MIC, SEEING NONE FROM THERE, WE
WILL BRING IT BACK TO THE
COMMITTEE. ARE THERE ANY
QUESTIONS OR COMMENTS FROM
COMMITTEE MEMBERS? ASSEMBLY
MEMBER DIXON, YOU ARE
RECOGNIZED. THANK YOU. CHAIR I
JUST HAVE A FEW CLARIFYING
QUESTIONS. SO WHY DID IT TAKE SO
LONG TO ESTABLISH A COUNCIL AND
THE PAWNBROKERS HAVE BEEN AROUND
FOR HUNDREDS OF YEARS, I
IMAGINE, MAY I, NOBODY WANTS TO
INVITE REGULATION AND, YOU KNOW,
GETTING A CONSENSUS AMOUNT AMONG
US THAT WE'RE GOING TO DO, TO
BRING MORE REGULATION UPON THE
INDUSTRY. THERE'S A LITTLE BIT
OF PUSHBACK I SEE. AND WE AND WE
AS AN ASSOCIATION HAVE BEEN PART
OF A CONTINUED EDUCATION. THAT'S
A BIG PART OF OUR, OUR
ASSOCIATION AS IT IS. AND SO
WE'VE BEEN DOING THAT. AND SO
THE ARGUMENT IS, WELL, WHY DO WE
DO IT? WE'RE DOING IT OURSELVES
NOW. BUT NOT EVERYONE IS PART OF
THE ASSOCIATION, NOR WILL THEY
EVER BE. BUT THIS WOULD REQUIRE
EVERYONE TO BE A MEMBER. AND
THEN YOU TALKED ABOUT THE SMALL
OH, I'M SORRY, NOT NOT BE A
MEMBER OF ASSOCIATION. THAT'S
SOMETHING ELSE. OH, JUST THAT IS
REQUIRED THAT THEY ARE EDUCATED,
THAT THEY, THEY STATED AND
PARTICIPATED AND EVERYBODY WOULD
BE REQUIRED FOR THE EIGHT HOURS,
YOU MENTIONED THE SMALL LOANS.
NOW DID I UNDERSTAND THAT
CORRECTLY? IS THERE ANY CONTROL
ON THE INTEREST RATES, NOTHING
HERE AFFECTS THE INTEREST RATE,
BUT EVERYTHING THAT EVERY LOAN
THAT WE DO IS IN STATUTE. YOU
KNOW, THERE'S THERE IS A, A
MAXIMUM FEE, A MAXIMUM INTEREST.
SO CAN'T BE USURIOUS RATES FOR
SMALL LOANS. NO OKAY. BECAUSE
THAT'S ALREADY RELATED BY
ANOTHER STATUTE. RIGHT. GO AHEAD
. ALL RIGHT, SINCE YOU BROUGHT
UP THE SUBJECT, I WILL JUST LET
YOU KNOW THAT THERE IS A BILL
THAT'S IN THE SENATE RIGHT NOW
THAT WILL ADDRESS FEES, AND
THAT'S BEING HEARD IN THE SENATE
COMMITTEE ON WEDNESDAY. AND
LOANS AND LOANS AS WELL ARE JUST
THE FEES, THE, THE FEES ON THE
LOANS. OKAY. OH. ALL RIGHT. SO
THE LEGISLATURE WILL WAIT TO SEE
THAT THIS YEAR. YES. AND IT
WILL. THANK YOU FOR THOSE KINDS
OF LOANS. I THINK THAT THAT
COULD BE POTENTIALLY PROBLEMATIC
. HIGHER INTEREST RATE FOR
PEOPLE WHO ARE NOT IN A GOOD
ECONOMIC POSITION TO PAY HIGH
INTEREST RATES. I JUST WANT TO
BE SURE THERE'S ENOUGH
SUFFICIENT CONTROL OVER THAT.
ALL RIGHT. THANK YOU VERY MUCH.
THANK YOU. ARE THERE ANY OTHER
QUESTIONS OR COMMENTS? THANK
YOU. WE HAVE A MOTION FROM
ASSEMBLYMEMBER SORIA AND A
SECOND FROM ASSEMBLYMEMBER
RUBIO, SEEING NO OTHER COMMENTS
OR QUESTIONS FROM COMMITTEE,
WOULD THE AUTHOR LIKE TO MAKE A
CLOSING STATEMENT? VERY BRIEFLY,
THANK YOU VERY MUCH, MR.
MEMBERS. AND THANK YOU FOR
MOVING THE BILL, REALLY BELIEVE
THIS IS IN A STEP IN THE RIGHT
DIRECTION BY HELPING NOT ONLY
THE SMALL MÀ MOM AND POP
BUSINESSES, THAT'S IN THE SPACE
OF BEING PAWNBROKERS, BUT ALSO
ACCOUNTABILITY AND TRANSPARENCY
AND MAKING SURE THIS INDUSTRY
STAYS, ON TOP OF, REGULATIONS,
LAWS AND THINGS OF THAT NATURE.
THEY TAKE IT UPON THEMSELVES TO
REGULATE THEIR OWN INDUSTRY. AND
I THINK, THAT'S WHAT REALLY MADE
ME VERY EXCITED ABOUT TAKING
UPON THIS BILL, BECAUSE I THINK
IT'S THE RIGHT THING TO DO. AND
IT ALSO HOPEFULLY THAT, WE CAN
MOVE FORWARD, IN CALIFORNIA. SO
THANK YOU VERY MUCH.
RESPECTFULLY ASK FOR AN I VOTE.
THANK YOU, MR. GIBSON, FOR YOUR
WORK ON THIS BILL. AND ALSO
WORKING WITH THE COMMITTEE STAFF
AS WELL. AND WITH THAT, WE DO
HAVE A MOTION AND A SECOND
SECRETARY. PLEASE CALL THE ROLL.
THE MOTION IS DUE PASS AND
REFERRED TO COMMITTEE ON
BUSINESS AND PROFESSIONS.
GRAYSON A GRAYSON. AYE. CHEN.
CERVANTES. DIXON Þ. DIXON. NOT
VOTING. MIKE FONG MAIENSCHEIN.
AYE. MAIENSCHEIN. AYE
PETRIE-NORRIS. PETRIE-NORRIS.
AYE. BLANCA RUBIO. BLANCA.
RUBIO. AYE. SORIA SORIA. AYE.
THAT BILL HAS FIVE VOTES. THIS
BILL DOES, PASS. IT GETS OUT. WE
WILL HOLD IT OPEN FOR ABSENT
MEMBERS. THANK YOU VERY MUCH.
THANK YOU VERY MUCH. WHILE WE
HAVE AN OPPORTUNITY, LET'S,
ADDRESS THE CONSENT CALENDAR.
THERE ARE THREE BILLS ON THE
CONSENT CALENDAR A, B 31, 48.
MOTION IS DUE PASSED TO THE
COMMITTEE ON APPROPRIATIONS. A B
1934. MOTION IS DUE. PASS TO THE
COMMITTEE ON APPROPRIATIONS AND
AB 2422 MOTION IS Dð PASS TO THE
COMMITTEE ON APPROPRIATIONS.
MOTION BY ASSEMBLY MEMBER RUBIO.
SECOND BY ASSEMBLYMEMBER SORIA,
WITH THAT SECRETARY, PLEASE CALL
ROLL. GRAYSON GRAYSON. AYE.
CHEN. CERVANTES DIXON. AYE MIKE.
FONG MAIENSCHEIN. AYE.
MAIENSCHEIN. AYE. PETRIE-NORRIS
PETRIE-NORRIS. AYE. BLANCA
RUBIO. MARCO. RUBIO. AYE. SORIA
SORIA. AYE. SIX VOTES. THAT BILL
GETS OUT. WE'LL KEEP OPEN. OR
CONSENT. WE'LL KEEP IT OPEN FOR
ABSENT MEMBERS TO JOIN OR TO ADD
ON, WITH THAT WE ARE WAITING FOR
AUTHORS. SO IF SERGEANTS IF
SERGEANTS COULD GET AHOLD OF
AUTHORS AND ABSENT MEMBERS, THAT
WOULD BE GREAT
.
AND WE DO HAVE AN AUTHOR HERE.
MR. MCCARTY. I KNOW YOU JUST
WALKED INTO THE ROOM, BUT WE ARE
READY FOR YOU. THE NEXT BILL AND
FIRE ORDER IS ITEM NUMBER TWO,
AB 2457. THE RECOMMENDATION IS
DO PASS, AS AMENDED, TO THE
COMMITTEE ON LOCAL GOVERNMENT.
THOSE AMENDMENTS ARE DETAILED IN
THE COMMITTEE ANALYSIS. ASSEMBLY
MEMBER CARTY, WHEN YOU ARE
READY, PLEASE FEEL FREE TO BEGIN
WITH YOUR OPENING STATEMENT.
THANK YOU AND THANK YOU FOR
WORKING WITH US ON THIS AND WE
ACCEPT THE COMMITTEE AMENDMENTS.
THIS IS A DISTRICT BILL FROM
SOME OF YOU ARE IN SACRAMENTO.
IF YOU PAY YOUR UTILITY BILLS,
HOPEFULLY PAY THOSE BILLS ON
TIME. IT'S CALLED SMUD HERE.
LOCAL PUBLIC POWER. THIS IS A
BILL THAT'S ON BEHALF OF THE
ENTITY. THIS EXTENDS A PROGRAM
WHICH I CREATED IN 2019, HELPING
THEM TO ENTER INTO, BUSINESS
PARTNERSHIPS THROUGH THEIR
GOVERNANCE STRUCTURE ALLOWS THEM
TO HELP KEEP RATES LOW AND
FOCUSING ON THEIR LONG TERME
GOAL OF 100% CLEAN ENERGY, THIS
EXTENDS A SUNSET OF A PROGRAM,
AND WE DO HAVE SOME TECHNICAL
AMENDMENTS THAT WE'RE TAKING ON
BEHALF OF THE COMMITTEE WITH ME
TODAY IS A REPRESENTATIVE FROM
SMUD. AND, RESPECTFULLY ASK FOR
YOUR VOTE AFTER THE
PRESENTATION. THANK YOU. THANK
YOU, ASSEMBLYMEMBER CARTY. WE
HAVE TWO MINUTES PER WITNESS.
PLEASE FEEL FREE TO BEGIN WHEN
YOU'RE READY. CHAIR GRACE AND
MEMBERS OF THE COMMITTEE, I'M
LAURA LEWIS, CHIEF LEGAL AND
GOVERNMENT AFFAIRS OFFICER FOR
SMUD, OR THE SIXTH LARGEST
COMMUNITY OWNED ELECTRIC UTILITY
IN THE NATION. WE SERVE ABOUT
1.5 MILLION RESIDENTS IN
SACRAMENTO COUNTY, AND SMALL
PORTIONS OF PLACER AND YOLO
COUNTIES. AS A PUBLICLY OWNED
UTILITY, EVERY DOLLAR IN REVENUE
THAT WE GENERATE IS INVESTED IN
THE COMMUNITY OR USED TO OFFSET
ANY FUTURE RATE INCREASES. THANK
YOU FOR THE OPPORTUNITY TO
ADDRESS THE COMMITTEE ON AB
2457, A BILL THAT WOULD ALLOW
SMUD TO CONTINUE THE AUTHORITY
TO HOLD NON-STOCK EQUITY IN A
CORPORATION. THIS AUTHORITY IS
IMPORTANT BECAUSE IT ALLOWS US
THE OPPORTUNITY TO REALIZE A
RETURN ON THE PRODUCTS AND
SERVICES THAT WE HELPED DEVELOP,
WHICH WILL HELP KEEP OUR RATES
AFFORDABLE. IMPORTANTLY, SMUD
DOES NOT PAY ANYTHING IN THESE
DEALS BEYOND WHAT WE WOULD
NORMALLY PAY TO PROCURE THE
PRODUCT OR SERVICE. AS WAY OF
BACKGROUND, IN 2019, THE
LEGISLATURE PASSED AB 689, WHICH
GRANTED SMYTHIES PILOT AUTHORITY
WITH THIS LEGISLATION, WE'RE
LOOKING TO EXTEND THE PROGRAM AS
WELL AS MAKE SOME ADDITIONAL
CLARIFICATIONS. SMUD OFTEN
PARTNERS WITH COMPANIES TO
DEVELOP INNOVATIVE PRODUCTS AND
SERVICES THAT ENABLE US TO
ACHIEVE THE STATE'S CLEAN ENERGY
GOALS AND MAINTAIN AFFORDABILITY
AND RELIABILITY FOR OUR
CUSTOMERS. FOR SOME OF THESE
PRODUCTS AND SERVICES, SMUD
PROVIDES ACCESS TO OUR
INTELLECTUAL PROPERTY, DEVOTES
STAFF TIME, AND PROVIDES
CRITICAL FIELD TESTING TO ENSURE
THEIR EFFECTIVENESS. THE
COMPANIES THAT WE PARTNER WITH
MAY THEN CAPITALIZE ON OUR
CONTRIBUTION BY MARKETING THESE
PRODUCTS AND SERVICES TO OTHER
UTILITIES. AS AN EXAMPLE, BEFORE
THE PASSAGE OF AB 689, WE WORK
WITH THE COMPANY TO DEVELOP
SOFTWARE THAT ANALYZES A
CUSTOMER'S METER DATA TO COMPARE
CUSTOMER ENERGY USAGE AND
ENCOURAGE ENERGY EFFICIENCY. IF
SMUD HAD OBTAINED A SECURITY
INTEREST IN THAT COMPANY, OUR
CUSTOMERS WOULD HAVE SEEN A
SUBSTANTIAL RETURN WHEN THAT
COMPANY LATER SOLD FOR MILLIONS.
SMUD EXERCISES AUTHORITY UNDER
AB 1689 TO ENTER A PARTNERSHIP
WITH A COMPANY THAT IS
DEVELOPING LONG DURATION ENERGY
STORAGE THAT WILL BE ESSENTIAL
FOR US TO MEET OUR CARBON
REDUCTION GOALS RELIABLY. WE ARE
CURRENTLY NEGOTIATING A SECOND
DEAL WITH THE COMPANY THAT IS
DEVELOPING MEDIUM AND HEAVY
DUTY, ALL ELECTRIC WORK TRUCK
CHAVEZ TO MEET OUR CARBON
REDUCTION GOALS. WE WILL
CONTINUE WITH THESE INNOVATIVE
PARTNERSHIPS REGARDLESS OF
WHETHER WE CONTINUE WITH THIS
AUTHORITY. THIS AUTHORITY SIMPLY
ALLOWS OUR CUSTOMERS TO REAP THE
POTENTIAL FINANCIAL UPSIDE OF
THE PARTNERSHIPS. SHOULD THE
COMPANY SUCCEED. AND THANK YOU
FOR YOUR TIME. I'M HAPPY TO
ANSWER ANY QUESTIONS. THANK YOU
FOR YOUR TESTIMONY. ANOTHER
WITNESS. THAT'S IT. WONDERFUL.
YOU COMPLETE THE WHOLE GROUP
RIGHT THERE. IF WE HAVE ANY
OTHER WITNESSES HERE IN THE ROOM
, SIMPLY STATE YOUR NAME AND
ORGANIZATION AS WELL AS YOUR
POSITION. THANK YOU VERY MUCH.
AS A LINEUP. GO FOR IT. GOOD
AFTERNOON, CHAIR AND MEMBERS.
DEREK DOLPHY, ON BEHALF OF THE
CALIFORNIA MUNICIPAL UTILITIES
ASSOCIATION IN SUPPORT. THANK
YOU. GOOD AFTERNOON, MR. CHAIR.
MEMBERS. ROSS BUCKLEY WITH THE
CITY OF SACRAMENTO IN SUPPORT.
GOOD AFTERNOON, KELLEN FONG,
SACRAMENTO ASIAN CHAMBER OF
COMMERCE IN SUPPORT. GOOD
AFTERNOON, MR. CHAIR AND
MEMBERS. OBED FRANCO ON BEHALF
OF THE CALIFORNIA ELECTRIC
TRANSPORTATION COALITION, IN
SUPPORT. THANK YOU VERY MUCH.
SEEING NO OTHER, WE WILL TURN TO
WITNESSES IN OPPOSITION. IF YOU
ARE IN OPPOSITION, PLEASE FEEL
FREE TO COME FORWARD. SEEING
NONE, WE WILL BRING IT TO
COMMITTEE FOR QUESTIONS OR
COMMENTS. COMMITTEE MEMBERS, WE
HAVE A MOTION BY ASSEMBLY MEMBER
PETRIE-NORRIS, SECOND BY
ASSEMBLY MEMBER SORIA AND. AND
WOULD THE AUTHOR LIKE TO MAKE A
CLOSING STATEMENT? NO THANK YOU.
RESPECTFULLY ASK FOR YOUR I
VOTE. THAT WAS SHORT AND SWEET.
THANK YOU VERY MUCH. I DO WANT
TO THANK YOU FOR YOUR WORK AND
ACCEPTING THE AMENDMENTS AND
WORKING WITH COMMITTEE STAFF.
THANK YOU VERY MUCH FOR YOUR
WORK THERE. WE DO HAVE A MOTION
AND A SECOND SECRETARY. PLEASE
CALL THE ROLL AB 2457. THE
MOTION IS DUE PASS AS AMENDED
AND REFERRED TO COMMITTEE ON
LOCAL GOVERNMENT. GRAYSON A
GRAYSON I CHEN. CHEN I
CERVANTES. DIXON I DIXON I MIKE
FONG, MIKE FONG I MAIENSCHEIN
MAIENSCHEIN I PETRIE-NORRIS I
PETRIE-NORRIS I BLANCA RUBIO,
BLANCA RUBIO I SORIA SORIA I.
THE BILL HAS EIGHT VOTES.
ASSEMBLYMEMBER MCCARTY, YOU
ENJOY UNANIMOUS SUPPORT. THANK
YOU VERY MUCH. THIS BILL GETS
OUT. THANK YOU. WITH EIGHT
VOTES. THANK YOU. GOING TO THE
NEXT FIRST, BILL THAT WE HAVE
FILE ITEM NUMBER THREE AB 20
908, VICE CHAIR CHEN, YOU ARE
PRESENTING AB 20 908. THE
RECOMMENDATION. THE
RECOMMENDATION IS DO PASS. AND
WHEN YOU ARE READY, VICE CHAIR
CHEN. THANK YOU, MR. CHAIR.
REALLY APPRECIATE THAT. IN THE
INTEREST OF TIME, I'M GOING TO
DEFER MY TIME TO MY KEY WITNESS
TESTIMONY, SINCE THERE IS,
SUPPORT FROM THE CHAIR. THANK
YOU. THANK YOU VERY MUCH. I'M
CHRIS DELFINO, A CORPORATE
LAWYER. AND FOUNDER OF THE
SACRAMENTO BASED LAW FIRM
DELFINO MADDEN. AND I'M HERE TO
SPEAK IN SUPPORT OF AB 2908 ON
BEHALF OF THE CALIFORNIA LAWYERS
ASSOCIATION CORPORATIONS
COMMITTEE, A NONPROFIT
ORGANIZATIONS COMMITTEE. I'M
ALSO THE FORMER CO-CHAIR OF THE
CORPORATIONS COMMITTEE. CURRENT
LAW ALLOWS SHAREHOLDERS OF FOR
PROFIT CORPORATIONS AND
NONPROFIT PUBLIC BENEFIT
CORPORATIONS, MUTUAL BENEFIT
CORPORATIONS AND COOPERATIVES TO
PARTICIPATE IN SHAREHOLDER
MEETINGS, MEMBER MEETINGS, SO
LONG AS CERTAIN PROCEDURAL
REQUIREMENTS ARE SATISFIED THEY
CAN PARTICIPATE REMOTELY.
HOWEVER, THE ABILITY OF
SHAREHOLDERS AND MEMBERS TO
ATTEND MEETINGS ELECTRONICALLY
WITHOUT HAVING TO PROVIDE THE
UNANIMOUS CONSENT OF THE
SHAREHOLDERS OR MEMBERS, OR AS A
RESULT OF AN EMERGENCY WILL END
DECEMBER 31ST, 2025. THE
COMMITTEES BELIEVE THAT ALLOWING
FOR REMOTE SHAREHOLDER AND
MEMBER MEETINGS HAS REDUCED
IMPEDIMENTS TO SHAREHOLDER AND
MEMBER PARTICIPATION AT THESE
MEETINGS, ESPECIALLY FOR THOSE
WHO MAY HAVE FINANCIAL OR
PHYSICAL DIFFICULTIES TO
TRAVELING OR TO ATTEND SUCH
MEETINGS. CORPORATIONS PLAN
THEIR ANNUAL SHAREHOLDER AND
MEMBER MEETINGS MONTHS, IF NOT
YEARS, IN ADVANCE. IT IS MY
UNDERSTANDING THAT IF THIS
CHANGE IS NOT MADE TO THE
CURRENT LAW IN 2024, THIS SAME
CHANGE TO THE LAW WOULD NOT
OCCUR UNTIL LATE 2025. SUCH A
LATE CHANGE WOULD UNDERMINE THE
EFFICIENCY AND EFFECTIVENESS OF
THE PLANNING, BOTH BY THE
CORPORATION AND THE SHAREHOLDERS
AND MEMBERS WHO WOULD PLAN TO
ATTEND. SO AS A RESULT, THE
CORPORATIONS COMMITTEE AND
NONPROFIT ORGANIZATIONS
COMMITTEE SUPPORT AB 2908. THANK
YOU SO MUCH FOR YOUR TESTIMONY.
DO WE HAVE ANYONE ELSE IN THE
ROOM IN SUPPORT? PLEASE COME
FORWARD SEEING NONE, WE WILL GO
TO OPPOSITION. ARE THERE ANY IN
OPPOSITION IN THE ROOM? PLEASE
COME FORWARD SEEING NONE AS WELL
. SO WE WILL BRING IT BACK TO
COMMITTEE FOR QUESTIONS OR
COMMENTS, SEEING IF THERE'S WE
HAVE A MOTION BY ASSEMBLY MEMBER
PETRIE-NORRIS AND A SECOND BY
ASSEMBLY MEMBER FONG. HE BEACHES
ASSEMBLY MEMBER DIXON. JUST IT'S
ALL OKAY. IT'S ALL BY YOURSELF
OVER ON THE SIDE. IT'S FINE. SO
WITH THAT, I DO WANT TO THANK
YOU FOR YOUR GOOD WORK ON THIS,
BILL AND, WOULD YOU LIKE TO MAKE
A CLOSING STATEMENT, MR. CHAIR,
I WANT TO THANK YOUR STAFF FOR
WORKING WITH MY TEAM ON THIS
BILL. AND WITH THAT, I
RESPECTFULLY ASK FOR AYE VOTE.
THANK YOU, VICE CHAIR. AND WITH
THAT, WE WILL. WE HAVE A MOTION,
A SECOND SECRETARY, PLEASE CALL
THE ROLL. ÁP 2908. THE MOTION IS
DUE PASSED. GRAYSON, A GRAYSON.
AYE. CHEN. CHEN AYE. CERVANTES
DIXON. DIXON. AYE. MIKE. FONG
MIKE. FONG. AYE. MAIENSCHEIN.
MAIENSCHEIN. AYE PETRIE-NORRIS.
PETRIE-NORRIS. AYE. BLANCO.
RUBIO BLANCO. AYE. SORIA. SORIA
I. IT HAS EIGHT VOTES. VICE
CHAIR. YOU ENJOY UNANIMOUS
SUPPORT. THE BILL GETS OUT WITH
EIGHT VOTES. THANK YOU. THANK
YOU VERY MUCH. WE WILL GO BACK
NOW TO. LET'S START WITH THE
CONSENT CALENDAR FOR ADD ONS,
MADAM SECRETARY, WILL YOU CALL
RO FOR CONSENT CALENDAR? CHEN.
AYE CHEN. AYE. CERVANTES IS
ABSENT. MIKE FONG. HI. MIKE
FONG. AYE. THAT HAS EIGHT VOTES.
CONSENT CALENDAR GETS OUT WITH
EIGHT VOTES. AND IF WE CAN GO TO
FILE ITEM NUMBER ONE AB 2231, DO
PASS THE COMMITTEE ON BUSINESS
AND PROFESSIONS ADD ONS. CHEN
CHEN. AYE, SIR. ORTEZ MIKE FONG.
HI. MIKE FONG. AYE. IT HAS SEVEN
VOTES, SEVEN MOTION Ó AB 2231.
THE MOTION IS DUE PASS AND
REFERRED TO COMMITTEE ON A
BUSINESS AND PROFESSIONS. I
THINK I THROW IT OFF BECAUSE I
MADE THE ANNOUNCEMENT. SO HAVING
SAID THAT, THIS BILL DOES GET
OUT WITH SEVEN VOTES AND I
BELIEVE THAT WRAPS UP OUR
BUSINESS FOR THE DAY. JUST
DOUBLE CHECKING HERE AND WE HAVE
COMPLETED OUR AGENDA FOR TODAY'S
HEARING. WE WILL, MOVE ON. BEING
THAT, EVERYONE HAS ADDED ON THAT
CAN. AND WITH THAT, THE ASSEMBLY
BANKING AND FINANCE COMMITTEE IS
ADJOURNED