WELL. GOOD AFTERNOON, EVERYBODY,
AND WELCOME TO THIS HEARING OF
THE ASSEMBLY COMMITTEE ON
REVENUE AND TAXATION. AS ALWAYS,
PLEASE MAKE SURE TO SUBMIT
POSITION LETTERS AT LEAST ONE
WEEK PRIOR TO THE COMMITTEE
HEARING, IN ORDER FOR THEM TO BE
HEARD, REFLECTED IN THE BILL
ANALYSIS. ADDITIONALLY, PURSUANT
TO OUR COMMITTEE RULES BILLS
WITH THE FISCAL IMPACT OF PLUS
OR MINUS 150,000 WILL BE
REFERRED TO OUR SUSPENSE FILE,
WHICH WILL BE TAKEN UP AT A
LATER BRIEFING. A COUPLE OF
HOUSEKEEPING ITEMS. FIRST,
ASSEMBLY MEMBER PACHECO WILL BE,
REPLACING ASSEMBLY MEMBER THREE
OF US ON OUR COMMITTEE FOR THIS
HEARING ONLY. ADDITIONALLY, FILE
ITEM FOR AB 1879 BY ASSEMBLY
MEMBER GIBSON IS A PROPOSED
CONSENT ITEM. FINALLY, FILE ITEM
THREE AB 2274 BY ASSEMBLYMAN
BURDICK HAS BEEN PULLED BY THE
AUTHOR. LOOKS LIKE WE HAVE A
QUORUM. MISS HYLAND, CAN YOU
PLEASE CALL THE ROLL? IRWIN HERE
TO HERE. BAINS. GIBSON GRAYSON
HERE. PATTERSON. PACHECO HERE.
WE HAVE A QUORUM, A QUORUM HAS
BEEN ESTABLISHED, AND NOW WE
WILL TAKE UP OUR CONSENT
CALENDAR. CONSENT CALENDAR? ALL
RIGHT, ALL RIGHT. AND THAT IS,
FILE ITEM FOUR, AB 1879, WHICH
HAS BEEN MOVED BY ASSEMBLY
MEMBER GRAYSON AND SECONDED BY
ASSEMBLY MEMBER PACHECO. AND THE
MOTION IS Dð PASS TO
APPROPRIATIONS. MISS HYLAND,
PLEASE CALL THE ROLL. IRWIN.
YES. IRWIN. AYE. TO A TO. AYE.
BAINS. GIBSON. GRAYSON HI.
GRAYSON. AYE. PATTERSON.
PACHECO. PACHECO. AYE. MR.
PATTERSON, ON THE CONSENT
CALENDAR. PATTERSON AYE. THAT'S
PASSED FIVE ZERO, AND THAT BILL
IS OUT 5 TO 0. AND I DO NOT SEE
MISS BAINS HERE. SO WHO DO WE
HAVE? ORDER. OH. ALL RIGHT, MISS
BERNER, NEXT UP IS FILE ITEM
TWO, AB 2564 BY ASSEMBLY MEMBER.
BERNER. ASSEMBLY MEMBER,
WHENEVER YOU ARE READY. GOOD
AFTERNOON. CHAIR. MEMBERS
SPONSORED BY THE CALIFORNIA
STATE CONTROLLER, AB 2564 SEEKS
TO SECURE A PERMANENT FUNDING
SOURCE FOR THE SENIOR CITIZENS
AND DISABLED CITIZENS. PROPERTY
TAX POSTPONEMENT PROGRAM. THIS
PROGRAM ALLOWS HOMEOWNERS WHO
ARE SENIORS OR HAVE A DISABILITY
TO DEFER CURRENT YEAR PROPERTY
TAXES ON THEIR PRINCIPAL
RESIDENCE IF THEY MEET CERTAIN
INCOME AND HOME EQUITY CRITERIA.
ESTABLISHED IN 1977, THE PROGRAM
RECEIVED GENERAL FUND SUPPORT
UNTIL THE PROGRAM WAS SUSPENDED
IN 2009 DUE TO THE RECESSION. IN
2016, A SIGNIFICANTLY DIFFERENT
VERSION OF THE PROGRAM WAS
RESTORED, REMOVING ANY GENERAL
FUND SUPPORT AND MAKING THE
PROGRAM ENTIRELY SELF-FUNDED.
USING COLLECTIONS ON EXISTING
PROGRAM ACCOUNTS. COLLECTIONS
HAVE DECREASED DUE TO NO NEW
LOANS BEING MADE BETWEEN 2009
AND 2016, WHEN THE PROGRAM WAS
SUSPENDED, RESULTING IN THE
STATE CONTROLLER COLLECTING ON A
DWINDLING NUMBER OF OLD LOANS OR
WAITING UNTIL RECENT LOANS
BECOME DUE AND PAYABLE. AB 2564
WOULD REQUIRE TRANSFER FROM THE
GENERAL FUND TO THE PROGRAM ON
JUNE 30TH TO BRING THE PROGRAM'S
FUND BALANCE TO 15 MILLION IN
YEARS. THAT THE BALANCE IS LESS
THAN 15 MILLION, AND YEARS WHERE
THE FUND IS OVER 15 MILLION. THE
STATE CONTROLLER WOULD CONTINUE
TO TRANSFER BALANCES IN EXCESS
OF 15 MILLION TO THE GENERAL
FUND, AS REQUIRED UNDER CURRENT
LAW, AB 2564 HELPS SENIORS AND
DISABLED INDIVIDUALS, MOST OF
THEM ON A FIXED INCOME STAY IN
THEIR HOMES. I RESPECTFULLY ASK
FOR AN AYE VOTE AT THE
APPROPRIATE TIME, AND I HAVE
HERE WITH ME EVAN JOHNSON, ON
BEHALF OF THE STATE
COMPTROLLER'S OFFICE, THE
SPONSOR OF THIS BILL. THANK YOU.
AND YOUR PRIMARY WITNESS MAY BE
THERE. THANK YOU VERY MUCH. AND
I REGRET THE COMPTROLLER ISN'T
HERE ABLE TO BE HERE TODAY
HERSELF, BUT SHE IS A BIG
SUPPORTER OF THIS PROGRAM, MADAM
CHAIR AND MEMBERS, THANK YOU FOR
THE OPPORTUNITY TO TESTIFY TODAY
ON BEHALF OF THIS LEGISLATION.
MY NAME IS EVAN JOHNSON, DEPUTY
COMPTROLLER FOR LEGISLATIVE
AFFAIRS AT THE COMPTROLLER'S
OFFICE FOR CALIFORNIA STATE
CONTROLLER. MALIA COHEN,
COMPTROLLER COHEN IS PLEASED TO
SPONSOR AB 26 2564, WHICH WILL
PROVIDE A PERMANENT FUNDING
SOURCE FOR THE PROPERTY TAX
POSTPONEMENT PROGRAM, THE TPW
PROGRAM IS A LIMITED BUT
CRITICAL TOOL FOR ENABLING TO
ENABLE CERTAIN VULNERABLE
SEGMENTS OF OUR POPULATION TO
REMAIN IN THEIR HOMES. THE
PROGRAM ALLOWS ELIGIBLE ELDERLY
AND DISABLED INDIVIDUALS TO
DEFER PAYMENTS ON THEIR CURRENT
YEAR PROPERTY TAXES. THE PROGRAM
IS IN DANGER OF RUNNING OUT OF
FUNDING. RECENT STATUTORY
CHANGES HAVE REDUCED THE
INTEREST REPAYMENTS COMING INTO
THE PROGRAM, WHILE EXPANDING THE
POOL OF ELIGIBLE APPLICANTS.
ADDITIONALLY, ECONOMIC
VOLATILITY, AS WE'VE SEEN OF
LATE, LEADS TO FLUCTUATIONS IN
PROGRAM PARTICIPATION, WHICH
THEN LEADS TO UNPREDICTABILITY
IN THE PROGRAM. FUNDING. IN THE
2324 CYCLE OF THE PROGRAM.
THAT'S THIS YEAR. WE
UNFORTUNATELY NEEDED TO TURN
AWAY SOME ELIGIBLE MANUFACTURED
HOME APPLICANTS DUE TO LACK OF
FUNDING, AND WE WILL LIKELY NEED
TO DO DO SO AGAIN NEXT YEAR.
WE'RE CONCERNED THAT IN FISCAL
YEAR 2526, WE WILL NEED TO TURN
AWAY A LARGER NUMBER OF
APPLICANTS, INCLUDING THOSE IN
THE REAL PROPERTY PROGRAM,
POTENTIALLY CAUSING MORE HARM TO
THOSE VULNERABLE INDIVIDUALS WHO
HAVE COME TO RELY ON THIS
ASSISTANCE. THIS BILL, AS
MENTIONED, WOULD SECURE RELIABLE
FUNDING TO ENSURE THE PROGRAM
CAN CONTINUE TO HELP VULNERABLE
CALIFORNIANS. AND IN FLUSH
YEARS, THE GENERAL FUND WOULD
EVEN, WOULD CONTRIBUTE NOTHING
TO THE PROGRAM OR EVEN RECEIVE A
BENEFIT POTENTIALLY. FINALLY,
THIS BILL IS A REINTRODUCTION OF
LAST YEAR'S AB 2265, WHICH
RECEIVED BROAD LEGISLATIVE
SUPPORT, THANK YOU FOR THE
OPPORTUNITY TO TESTIFY. AND I
HAVE WITH ME TODAY, LINDSEY
ROSS, WHO OVERSEES THE TPW
PROGRAM, AND WE'RE HAPPY TO
ANSWER ANY QUESTIONS. CERTAINLY,
LINDSAY ROSS, BUREAU CHIEF OF
THE BUREAU OF TAX PROGRAMS AT
THE STATE COMPTROLLER'S OFFICE,
REQUEST YOUR IVO HAPPY TO ANSWER
ANY QUESTIONS YOU HAVE. ALL
RIGHT. THANK YOU. DO WE HAVE ANY
OTHER WITNESSES IN SUPPORT IN
THE ROOM? GOOD. CHAIR MEMBERS.
CLIFTON WILSON WITH CHAU YODER,
ANTHONY SCHMELZER AND LANG ON
BEHALF OF THE CALIFORNIA
ASSOCIATION OF COUNTY TREASURERS
AND TAX COLLECTORS IN SUPPORT.
THANK YOU, VANESSA CHÁVEZ WITH
THE CALIFORNIA ASSOCIATION OF
REALTORS AND SUPPORT. THANK YOU.
ERIC LARA WITH THE CALIFORNIA
STATE ASSOCIATION OF COUNTIES IN
SUPPORT. THANK YOU. BEN TREVOR
WITH THE LEAGUE OF CALIFORNIA
CITIES IN SUPPORT, DO WE HAVE
ANY WITNESSES IN OPPOSITION,
QUESTIONS FROM THE COMMITTEE. I
JUST HAVE ONE QUESTION. THIS
BILL WAS VETOED LAST YEAR AND
THE YEAR BEFORE. I BELIEVE SO
HOW HAVE YOU BEEN WORKING WITH
THE ADMINISTRATION TO MAKE SURE
IT GETS THROUGH THIS TIME? WE
CONTINUE TO HAVE A DIFFERENCE OF
OPINION BETWEEN THE
COMPTROLLER'S OFFICE AND THE
DEPARTMENT OF FINANCE, AND
THEY'VE BEEN WORKING OVER THE
INTERIM TO RECOGNIZE THAT THIS
PROGRAM IS REALLY IMPORTANT. AS
YOU ALL KNOW, A LARGE PORTION OF
THOSE BECOMING HOMELESS ARE OUR
SENIORS, AND KEEPING THEM IN
THEIR HOMES IS A REALLY VALUABLE
PROGRAM, WHICH THIS PROGRAM
DOES. BUT WITH THIS GAP OF OVER
15 MILLION HAVING TO GO BACK TO
THE GENERAL FUND, BUT NOT UPPING
IT WHEN IT GOES BELOW 15
MILLION, WE'RE CREATING A SYSTEM
THAT WILL NOT SUSTAIN SENIORS
AND DISABLED CALIFORNIANS WHO
ARE LOW INCOME STAYING IN THEIR
HOMES. ALL RIGHT. THANK YOU,
MISS BERNER, WOULD YOU LIKE TO
CLOSE RESPECTFULLY, THE
APPROPRIATE TIME. ASK FOR AN AYE
VOTE. ALL RIGHT. AND WITHOUT
OBJECTION, THIS BILL WILL BE
REFERRED TO OUR SUSPENSE FILE.
THANK YOU, THANK YOU, THANK YOU.
ALL RIGHT, WE'RE GOING TO GO
AHEAD AND, LET MISS QUIRK-SILVA
GO NEXT. SINCE MISS BAINES IS ON
THE COMMITTEE, AND THAT IS FILE
ITEM SIX, AB 2555. WHENEVER YOU
ARE READY. GOOD AFTERNOON, MADAM
CHAIR, AND MEMBERS, PLEASE READ
THESE TALKING POINTS. SORRY,
SORRY, SORRY. GOOD AFTERNOON,
MADAM CHAIR AND MEMBERS, TODAY I
PRESENT ASSEMBLY BILL 2555 AND
WILL BE WORKING ON THE
COMMITTEE'S SUGGESTED AMENDMENTS
IN THE BILL ANALYSIS. THIS BILL
EXTENDS CURRENT TAX EXEMPTION
LAWS ON MEDICAL CANNABIS PRODUCT
DONATIONS FOR CHRONICALLY ILL
MEDICAL PATIENTS AND VETERANS
BACK IN 1996, CALIFORNIA VOTERS
PASSED PROPOSITION 215, WHICH
ALLOWED INDIVIDUALS WITH CHRONIC
MEDICAL CONDITIONS TO LAWFULLY
OBTAIN CANNABIS FOR MEDICAL
PURPOSES. THIS ALLOWED PEOPLE
SUFFERING FROM HIV, AIDS,
GLAUCOMA, CANCER, AND
POST-TRAUMATIC STRESS DISORDER
TO USE MEDICAL MEDICINAL
CANNABIS TO HELP ALLEVIATE THEIR
DEBILITATING SYMPTOMS FROM
CHRONIC MEDICAL CONDITIONS. 20
YEARS LATER, IN 2016, CALIFORNIA
VOTERS AGAIN PASSED THE ADULT
USE OF MARIJUANA ACT, KNOWN AS
PROPOSITION 64. THIS ACT
INTRODUCED NEW TAXATION POLICIES
FOR RECREATIONAL AND MEDICINAL
CANNABIS OPERATIONS.
REGRETTABLY, THE 2016 ACT
NEGLECTED TO INCLUDE THE NEEDS
OF COMPASSIONATE CARE PROGRAMS
WHO DONATE UNSOLD CANNABIS TO
LOW INCOME PATIENTS AND VETERANS
THAT CANNOT AFFORD THEIR
MEDICINE. DONATIONS OF CANNABIS
AND CANNABIS PRODUCTS FROM
COMPASSIONATE CARE PROGRAMS AND
CANNABIS RETAILERS BECAME
POSSIBLE IN EARLY 2020, THANKS
TO SB 34, AUTHORED BY SENATOR
WIENER. HIS BILL ALLOWED FOR
CANNABIS LICENSEES TO DONATE
CANNABIS AND CANNABIS PRODUCTS
TO VETERANS AND MEDICINAL
CANNABIS PATIENTS, AND EXEMPTED
THE MEDICAL DONATIONS FROM
TAXATION UNTIL JANUARY 2025,
WITH THE SUNSET DATE RAPIDLY
APPROACHING, THIS CLEAN UP BILL
FOR VETERANS AND MEDICAL
PATIENTS WOULD ALLOW THE
LEGISLATURE TO CONTINUE ITS
COMPASSIONATE STANCE TOWARD
MEDICAL CANNABIS DONATIONS SET
BY SB 34. THE BILL WILL HELP
KEEP VULNERABLE MEDICAL CANNABIS
PATIENTS AND VETERANS OUT OF THE
ILLICIT CANNABIS MARKET, WHERE
PRODUCTS ARE OFTEN UNTESTED AND
UNSAFE. WITH ME TODAY TO PROVIDE
TESTIMONY AND ANSWER ANY
QUESTIONS THAT FOR THE COMMITTEE
IS SHANNON DE GROOMS, EXECUTIVE
DIRECTOR AND CO-FOUNDER OF THIS
IS A JANE PROJECT PROJECT AND
LINDSAY COMEY, US NAVY CORPSMEN
VETERAN, MEMBER OF THE
COMPASSIONATE VETERANS AND
FORMER DIRECTOR OF OAKLAND
FEMINIST WOMEN'S HEALTH CENTER
AND WOMEN'S CHOICE. THANK YOU.
PLEASE. GOOD AFTERNOON. MY NAME
IS SHANNON DE GROOMS. I'M THE
FOUNDER AND EXECUTIVE DIRECTOR
OF THIS IS JANE PROJECT. WE'RE
AN ORGANIZATION COMMITTED TO
EMPOWERING WOMEN AND NON-BINARY
TRAUMA SURVIVORS, MANY WHO HAVE
BEEN BRAVELY SERVED IN THE
MILITARY Kò. TODAY, I'M HERE TO
EXPRESS OUR UNWAVERING SUPPORT
FOR AB 2555. THROUGH OUR WORK,
WE'VE SEEN FIRSTHAND THE
PROFOUND IMPACT ACCESS TO
MEDICAL CANNABIS HAS ON OUR
COMMUNITY, PROVIDING NOT JUST
RELIEF, BUT A SENSE OF BELONGING
AND SUPPORT FOR OVER A THOUSAND
JANES NATIONWIDE. THE PROGRAMS
FACILITATED BY SB 34 HAVE BEEN
INSTRUMENTAL IN THIS JOURNEY,
OFFERING A VITAL SOURCE OF
HEALING AND EMPOWERMENT.
HOWEVER, THE SUNSETTING
PROVISIONS OF SB 34 PRESENT A
REAL THREAT WITHOUT THE
CONTINUED ACTION THAT AB 2555
PROMISES. EXCUSE ME, I'M
NERVOUS. THE VERY FOUNDATION.
DON'T BE NERVOUS. YOU'RE DOING
FINE. THANK YOU. THE VERY
FOUNDATION OF CARE AND SUPPORT
WE'VE BUILT FOR OUR VETERANS AND
COMMUNITY MEMBERS IS AT RISK.
THE LOSS OF THESE, THE LOSS OF
THESE COMPASSIONATE CANNABIS
DONATIONS WOULD CREATE A
SIGNIFICANT BARRIER, POTENTIALLY
SEVERING A LIFELINE FOR THOSE
WHO FOUND SOLACE AND STRENGTH
THROUGH THESE PROGRAMS. AS A
CONSTITUENT OF ASSEMBLY DISTRICT
42, I URGE YOU TO CONSIDER THE
CRITICAL IMPORTANCE OF AB 2555.
THIS ISN'T JUST ABOUT
MAINTAINING ACCESS, IT'S ABOUT
UPHOLDING OUR COMMITMENT TO
COMPASSION, CARE, AND COMMUNITY
FOR THOSE WHO HAVE SERVED OUR
COUNTRY AND THOSE HEALING FROM
TRAUMA LIKE MYSELF. YOUR SUPPORT
FOR AB 2555 WILL ENSURE THAT THE
SPIRIT OF COMPASSION CONTINUES
TO GUIDE CALIFORNIA'S MEDICINAL
CANNABIS POLICIES, AFFIRMING OUR
COLLECTIVE COMMITMENT TO THE
WELL-BEING OF EVERY CALIFORNIAN
IN NEED. THANK YOU FOR YOUR TIME
AND FOR THE OPPORTUNITY TO SHARE
THE IMPACT AND NECESSITY OF AB
2555. YOUR BACKING IS CRUCIAL
FOR US TO CONTINUE PROVIDING
TRANSFORMATIVE CARE AND SUPPORT.
THANK YOU. THANK YOU. VERY GOOD.
GOOD JOB. MY NAME IS LINDSAY
COMEY AND I REALLY APPRECIATE
CHAIRMAN IRWIN IN THE COMMITTEE
MEMBERS LISTENING TO OUR
TESTIMONY. I AM A UNITED STATES
VETERAN OF THE NAVY, AND I SPENT
15 MONTHS WITH THE MARINES. SO I
HAVE A REAL UNDERSTANDING ABOUT
NEED FOR VETERANS, AND THAT WHEN
I LEFT THE SERVICE, I RAN A
WOMEN'S HEALTH CENTER,
REPRODUCTIVE HEALTH CARE CLINIC
FOR 32 YEARS IN OAKLAND. SO I AM
A BUSINESSWOMAN THAT UNDERSTANDS
THE NEED OF POVERTY CLASS
PATIENTS, AND THAT I RAN A
CERTIFIED COMMUNITY HEALTH
CLINIC HERE IN THE STATE OF
CALIFORNIA. SO I UNDERSTAND THE
REQUIREMENTS OF LEGISLATION. BUT
WHAT I DON'T UNDERSTAND IS WHY
WE THOUGHT IT WAS OKAY. HèA TO
LEAVE VETERANS BEHIND WITH PROP
64, AND WHY WE THOUGHT THAT IT
WAS OKAY FOR A COMPASSION
PROGRAM TO BE LEFT OUT OF THE
LOOPHOLE AND TO BE TOLD THAT WE
CAN WAIT TWO YEARS FOR THIS. SO
AB 34, THAT WAS A WAY TO REMEDY
THIS HORRIFIC LOSS OF
COMPASSION. WE SAW THE
TRANSITION FROM 215 TO PROP 64
BEING HURTFUL TO MEDICAL
PATIENTS. WE SAW A LOSS OF
ACCESS AND THE REMEDY WAS 34.
WE'RE ASKING YOU WITH AB 25 AND
55 TO ENSURE THAT THAT REMEDY
CONTINUES TO CONTINUE THE WORK
THAT YOU'VE SHOWN TO SUPPORTING
VETERANS AND SENIORS AND HEALTH
PATIENTS THAT NEED ALTERNATIVE
MEDICINE TO SURVIVE. WE ARE
ASKING NOT ONLY FOR YOUR SUPPORT
, BUT UNDERSTANDING THAT YOU
HAVE CONTINUED TO PROVIDE CARE
AND SUPPORT FOR VETERANS ACROSS
THE BOARD. WE HAVE NO REASON TO
BELIEVE THAT THIS COMMITTEE, OR
ANY COMMITTEE IN THE STATE OF
CALIFORNIA IS NOT SUPPORTIVE. WE
HAVE SEEN YOU DO THAT AGAIN AND
AGAIN AND AGAIN, AND WE'VE SHOWN
BY THE APPLICATION OF THIS
PROCESS THAT WE ARE NOT A BURDEN
ON THE STATE IN TERMS OF
PROVIDING THIS MEDICAL SERVICE
TO PATIENTS IN NEED. SO I THANK
YOU FOR YOUR SERVICE, AND I WANT
YOU TO CONTINUE TO BE THE
SUPPORTIVE ENVIRONMENT THAT
VETERANS CAN BE PROUD OF. THANK
YOU AND THANK YOU FOR YOUR
SERVICE. ARE THERE ANY OTHER
WITNESSES IN SUPPORT?
MY NAME IS BONNIE METCALF AND I
AM IN SUPPORT OF AB 2555. THANK
YOU. SARAH NOCETO, ON BEHALF OF
ORIGINS COUNSEL AND SUPPORT. MY
NAME, MY NAME IS ETIENNE
FONTAINE WITH BERKELEY PATIENTS
GROUP. THE OLDEST MEDICAL
CANNABIS DISPENSARY IN THE
UNITED STATES. AND WE SUPPORT
THIS FULLY. GOOD AFTERNOON. MY
NAME IS SELENA MARTINEZ, AND I'M
100% DISABLED VETERAN. I AM
FULLY DEDICATED TO
COMPASSIONATE, CANNOT WORK WITH
OUR VETERANS. I'VE SEEN IT WORK.
SO THANK YOU SO MUCH FOR YOUR
TIME. NATE LANDO WITH THE
VETERANS ACTION COUNCIL, AND
WE'RE HERE WITH THE 100% SUPPORT
OF THIS. THANK YOU. MY NAME IS
SHARON PENDARVIS AND I'M A
PATIENT AND ADVOCATE FOR THE
COMPASSION PROGRAM. AND I'M IN
SUPPORT OF SB 2555. THANK YOU.
HELLO, I'M CHRISTINE SPURGEON
AND I'M A PATIENT OF CANNABIS
AND A DAUGHTER OF A VETERAN THAT
USED IT. AND I FEEL THAT THIS
PROGRAM IS VERY BENEFICIAL.
BEALL THANK YOU. HELLO, I'M DALE
GEHRINGER. I'M ONE OF THE
COAUTHORS OF PROPOSITION 215,
THE COMPASSIONATE USE ACT OF
1996, AND I URGE YOUR SUPPORT.
THANK YOU. HI. MY NAME IS EDDIE
OLADIPO, A FOUNDER OF ABIOLA'S
ADVOCACY. COMPASSION CAME INTO
MY LIFE WHEN A LOVED ONE WAS
DIAGNOSED WITH CANCER AND GIVEN
THREE DAYS TO LIVE. I HAD TO
CHOOSE BETWEEN MY MORTGAGE OR
PAYING FOR CANNABIS AND I WAS
BLESSED WITH CANNABIS. SO I DO
SUPPORT THIS BILL. THANK YOU SO
MUCH. AND WE HAVE A CANCER
SURVIVOR. HI, MY NAME IS SUE
KULUM AND I AM FOR THE BILL. I'M
ONE OF THE ORIGINAL PATIENTS
WITH THE COMPASSIONATE ACT AND
IT'S REALLY IMPORTANT ALL THESE
PEOPLE HERE, ABSOLUTELY BELIEVE
IN IT LIKE I DO. IT SAVED MY
LIFE, LIKE MOST OF THE PEOPLE.
SO PLEASE CONSIDER THAT. THANK
YOU SO MUCH. RICHARD MILLER, ON
BEHALF OF AMERICAN ALLIANCE FOR
MEDICAL CANNABIS AND AMERICANS
FOR SAFE ACCESS IN SUPPORT OF AB
2555. THANK YOU. MY NAME IS
ROYCE KOHLER. I'M A RETIRED
THERAPIST SOCIAL WORKER, AND I'M
PLEADING TO INCREASE THE SUPPORT
OF 2025. THANK YOU. MY NAME IS
KRISTIN SPANGENBERG, AKA REEFER
RANGER, AND I RUN A VETERANS
FREE AND SAFE ACCESS PROGRAM
HERE IN SACRAMENTO, AND I FULLY
ENDORSE AND SUPPORT AB 2555. AND
IT'S REALLY HELPED MY SMALL
LITTLE PROGRAM MOVE FORWARD. AND
YEAH. HELLO. MY NAME IS NICOLE
REDLER, A CEO OF RE COMPASS AND
IN SUPPORT OF THIS BILL. THANK
YOU. HI MY NAME IS MARY, A I'M A
CURRENT CALIFORNIA MC PATIENT
FOR THE LAST THREE YEARS, AND I
SUPPORT THIS BILL. PLEASE
SUPPORT ALL OF US AB 2555. THANK
YOU THANK YOU. HI. THANKS FOR
HAVING ME, I'M CHARLES MCCLELLAN
. I'M A PATIENT. I'M LIVING WITH
PTSD IN STAGE FOUR CANCER, AND
IT IS ONE OF MY MAJOR PARTS OF
MY WELL-BEING. THANK YOU. I'M IN
SUPPORT. HI, I'M JEFF MARTIN.
I'M A COMPASSION PATIENT AT A
THERAPEUTIC ALTERNATIVE HERE IN
SACRAMENTO, I'M SUPPORT OF THIS
BILL, AND I APPRECIATE YOU ALL
BEING HERE. I JUST WANT TO THANK
YOU. HELLO. MY NAME IS SANDRA
BACON. TESORO I SUPPORT THIS
BILL. I DID 21 YEARS IN THE
MILITARY. I HAVE SIX GROWN KIDS,
19 GRANDKIDS AND TWO GREAT
GRANDDAUGHTERS. SO I NEED THE
MEDICATION, PLEASE. THANK YOU.
ALL RIGHT, WELL, THERE YOU HAVE
IT, ARE THERE ANY WITNESSES IN
OPPOSITION? QUESTIONS OR
COMMENTS FROM THE COMMITTEE? ALL
RIGHT, I APPRECIATE ALL THE
WITNESSES THAT SHOWED UP TODAY.
I KNOW IT'S NOT ALWAYS EASY TO
GET TO THE CAPITOL, WE THERE
WERE SOME ISSUES RAISED IN THE
BILL, AND WE ASSUME THE WHILE
THE BILL IS ON SUSPENSE, YOU'LL
CONTINUE TO WORK WITH THE
COMMITTEE ON THOSE. YES ALL
RIGHT. AND WOULD YOU LIKE TO
CLOSE, JUST RESPECTFULLY ASK FOR
YOUR. AYE VOTE. ALL RIGHT. AND
WITHOUT OBJECTION, THIS BILL
WILL BE REFERRED TO OUR SUSPENSE
FILE. THANK YOU, THANK YOU,
THANK YOU. MEMBERS ALL RIGHT. WE
WILL CALL UP, MR. LO. AND THAT
IS ITEM NUMBER. FIVE. YES. AND
AB 2238, ASSEMBLY MEMBER.
WHENEVER YOU'RE READY. THANK YOU
VERY MUCH, MADAM CHAIR AND
COLLEAGUES, FOR ALLOWING ME TO
PRESENT ASSEMBLY BILL 2238,
WHICH WOULD ADD THE STATE
TREASURER AND CDTFA TO THE
FRANCHISE TAX BOARD WITH ME
TODAY IN SUPPORT IS PATRICK
HENNING, CHIEF DEPUTY TREASURER.
ON BEHALF OF STATE TREASURER
FIONA MA, I RESPECTFULLY ASK FOR
AYE VOTE. HELLO, MADAM CHAIR,
MEMBERS OF THE COMMITTEE, I AM
PATRICK HENRY, CHIEF DEPUTY
TREASURER FOR TREASURER. FIONA
MA, WHO IS THE SPONSOR OF THIS
LEGISLATION AND CAPACITY AS THE
STATE'S BANKER. AB 2238 WOULD,
AS, MR. LOWE SAID, ADD THE
TREASURER AND THE DIRECTOR OF
CDTFA TO THE FRANCHISE TAX BOARD
, THE OH, EXCUSE ME, BOARD OF
EQUALIZATION. THE STATE OF
CALIFORNIA CREATED THE FRANCHISE
TAX BOARD IN IN 1950 WITH THE
MISSION TO HELP TAXPAYERS FILE
TIMELY AND ACCURATE TAX RETURNS
AND PAY THE CORRECT AMOUNT OF
STATE TAX TO FUND IMPORTANT
SERVICES FOR CALIFORNIA'S
MEMBERSHIP OF FTB CONSISTS OF
THE CONTROLLER BOARD, THE MEMBER
OF THE STATE BOARD OF
EQUALIZATION, AND THE DIRECTOR
OF FINANCE. IN GENERAL. THE
DIRECTOR OF FINANCE CONTROLLER
AND THE TREASURER, ARE SEATED AT
THE VAST MAJORITY OF BOARDS THAT
AFFECT THE STATE'S GENERAL FUND
AND FINANCIAL BOARDS. FTB,
HOWEVER, IS UNIQUE, AND UNLIKE
THOSE OTHER FINANCIAL BOARDS
THAT OMITS THE TREASURER HAVING
WHILE HAVING THE, LARGEST,
CONTRIBUTION TO THE GENERAL
FUND, THE TREASURER IS
RESPONSIBLE FOR THE STATE'S
DAILY CASH MANAGEMENT, AND IN
THIS RESPONSIBILITY, THE
TREASURER'S OFFICE WORKS WITH
FTB TO DETERMINE THE DAILY
REVENUES COLLECTED BY THE
FRANCHISE TAX BOARD, THAT FLOW
THROUGH THE TREASURER'S BANK
ACCOUNTS, WHICH FEED THE
CENTRALIZED TREASURY SYSTEM AND
ARE INVESTED DAILY, RECENTLY WE
HAVE HAD UNFORESEEABLE CHANGES
DURING THESE, DIFFICULT TIMES
BECAUSE OF EMERGENCIES. IN FACT,
IN 2022, THE, TAX FILINGS WERE
DELAYED FOR 55 OUT OF 58
COUNTIES. AND AGAIN, WE FIND
OURSELVES IN THIS SITUATION WITH
SAN DIEGO COUNTY, HAVING THEIR
TAXES DELAYED, THE ALTERATION OF
TAX FILING DEADLINE NEGATIVELY
IMPACTS THE STATE'S REVENUE
COLLECTION TIMELINE, AFFECTING
THE TRADITIONAL TAX FLOW
PATTERNS AND FOR THE STATE'S
CENTRALIZED TREASURY SYSTEM, AND
INTRODUCES UNCERTAINTIES IN
REVENUE PROJECTIONS, FISCAL
BUDGETING AND PLANNING. THE
TREASURER WOULD PROVIDE VALUE IN
DEVELOPING FUTURE FRANCHISE TAX
BOARD POLICIES AS THE STATE'S
BANKER, WITH DIRECT OVERSIGHT OF
THE STATE CASH IS, THE STATE'S
CASH MANAGEMENT SYSTEM.
INVESTMENT ACTIVITIES, WHICH
INCLUDE TAX REVENUES
ADMINISTERED BY THE FTB. THE
TREASURER HAS A UNIQUE
PERSPECTIVE TO CONTRIBUTE TO THE
BOARD AND ITS DELIBERATIONS AS A
BOARD MEMBER, THE TREASURER
WOULD BE IN A UNIQUE POSITION TO
PROVIDE EXPERTISE ON HOW FTB
DECISIONS IMPACT CALIFORNIA'S
FINANCIAL OPERATIONS AND
CONDITION, GIVEN THE CURRENT
STATE OF THE, GIVEN THE CURRENT
STATE OF THE STATE'S BUDGET, AND
MORE IMPORTANTLY, THIS HAVING
HER ON THE BOARD IS MORE
IMPORTANT THAN EVER. THE
TREASURER'S INVOLVEMENT WOULD
HELP ENSURE THAT FUTURE OF FTB
DECISIONS ARE MADE WITH A
THOROUGH UNDERSTANDING OF THE
IMPACTS ON THE STATE'S CASH
MANAGEMENT PROGRAM. HER
EXPERTISE AND PERSPECTIVE WOULD
ADD A LAYER OF INSIGHT TO
DECISIONS AFFECTING THE STATE'S
REVENUE. FOSTER AN ENVIRONMENT
WHERE TAX POLICIES ALIGN WITH
BROADER FISCAL OBJECTIVES AND
FINANCIAL EXPECTATIONS. FOR
THESE REASONS, THE TREASURER
ASKED FOR YOUR SUPPORT OF THIS
LEGISLATION. OAN, THANK YOU
VERY MUCH. ARE THERE, ANY OTHER
WITNESSES IN SUPPORT? OKAY.
WITNESSES IN OPPOSITION. ARE YOU
THE PRIMARY WITNESSES IN
OPPOSITION, I AM NOT, BUT I
DON'T SEE OTHERS HERE WHO ARE.
THANK YOU, MADAM CHAIR AND VICE
CHAIR AND COMMITTEE MEMBERS, MY
NAME IS SALLY LIEBER, AND I'M
THE CHAIR OF THE STATE BOARD OF
EQUALIZATION. WE SUBMITTED A
LETTER, OPPOSED, UNLESS AMENDED.
AND WE DO PLAN TO HAVE THIS ON
OUR UPCOMING AGENDA TO POTENTIAL
EARLY, CHANGE OUR POSITION ON
THAT. AND WE VERY MUCH
APPRECIATE THE AUTHOR'S MARCH
21ST, AMENDMENTS TO RETAIN THE
STATE BOARD OF EQUALIZATION AS
AS A MEMBER OF THE FTB, THE
REMAINING CONCERN THAT WE HAVE
THAT'S OUTSTANDING IS THE,
GOVERNANCE, QUESTIONS AND
CONCERNS THAT ARE RAISED BY THE
INCLUSION OF CDTFA, ON THE
BOARD. AND THAT WOULD
ESSENTIALLY, PUT THE DIRECTOR OF
ONE TAX BOARD, SITTING IN
JUDGMENT OF THE, LEADERSHIP OF
ANOTHER TAX BOARD AND SO IT'S A
BIT MECHANICALLY AWKWARD IN THAT
SENSE. I UNDERSTAND WANTING TO
HAVE, FIVE MEMBERS THERE AND,
BRINGING ON THE TREASURER,
ALTHOUGH THE TREASURER HAS VERY
DIFFERENT, JURISDICTION, IT IS,
COMPLEMENTARY IN THE WAYS THAT
YOU HEARD EARLIER. BUT THAT'S
THE REMAINING CONCERN THAT THAT
WE HAVE. AND, SO WE'LL BE TAKING
IT UP AGAIN AT OUR NEXT MEETING.
AND HOPING TO RECEIVE ANY
CHANGES FROM THIS COMMITTEE.
THANK YOU. ALL RIGHT. THANK YOU.
ARE THERE ANY OTHER WITNESSES IN
OPPOSITION? I JUST I APPRECIATE
MISS LIEBERMAN'S, LIEBER'S,
COMMENTS AND THE WHAT WE WERE
TRYING TO DO. AS WITH THE
COMMITTEE AMENDMENTS, IS TO MAKE
SURE THAT THE BOE WAS NOT LEFT
OFF THE BOARD. AND SO ADDING THE
TREASURER, OBVIOUSLY, THAT YOU
ENDED UP WITH FOUR MEMBERS, WE
ARE CERTAIN THE COMMITTEE IS
CERTAINLY OPEN TO ANY OTHER
SUGGESTIONS FOR THE FIFTH
MEMBER. WE JUST WANTED TO MAKE
SURE THERE WERE FIVE MEMBERS.
THANK YOU. SO JUST TO CLARIFY,
SINCE THE COMMITTEE DID, MAKE
THE AMENDMENTS, ALL RIGHT. DO WE
HAVE ANY QUESTIONS FROM THE
COMMITTEE? MR. CHACKO, I HAD A I
HAD A QUESTION, AS TO, THE
DIRECTOR OF CDTFA, IS THERE
ANOTHER MEMBER THAT THE BOARD OF
EQUALIZATION WOULD BE MORE
AGREEABLE TO ACCEPTING? WE HAVE
NOT GRAPPLED WITH THOSE
SPECIFICS YET, WE MAY AT OUR
NEXT MEETING AND CAN DEFINITELY
COMMUNICATE WITH THE COMMITTEE.
OUR THOUGHTS ARE, ONE THAT HAS
BEEN MENTIONED WOULD BE THE
LIEUTENANT GOVERNOR, AND. BUT WE
REALIZE THAT THOSE DECISIONS ARE
MADE AT AT YOUR LEVEL AND NOT AT
OURS, BUT WE DO THINK THAT
THERE'S SOMETHING THAT'S, NOT,
FAVORABLE STRUCTURALLY TO HAVE
ONE TAX AGENCY, OVER ANOTHER TAX
AGENCY IN THAT SENSE, WHEN IT'S
NOT ELECTED REPRESENTATION.
OKAY. AND I CAN SEE THAT. I WAS
JUST WONDERING IF THERE WAS
ANYONE ELSE THAT YOU HAD IN
MIND, BUT, I APPRECIATE THAT.
THERE'S A THERE'S DIALOG
HAPPENING AND I'M LOOKING
FORWARD TO SEEING THE FINAL
OUTCOME. SO THANK YOU SO MUCH
FOR BEING HERE. AND I DO WANT TO
MENTION YOU DO HAVE A BOARD
MEMBER HERE AS WELL, TONY
VAZQUEZ WALKED IN. YES. THANK
YOU. ASSEMBLY MEMBER GIBSON,
THANK YOU VERY MUCH AND
CERTAINLY APPRECIATE THE AUTHOR
AND HAVE GREAT RESPECT FOR THE
AUTHOR WHO BROUGHT THIS BILL
BEFORE US. I GUESS MY CONCERN,
HAS ALREADY BEEN ECHOED, AND
THAT IS WITH, CTFA BEING ON THE
BOARD. MY CONCERN IS THAT ONE,
WHEN YOU LOOK AT ALL THE ELECTED
INDIVIDUALS ON THIS BODY, AND
THEN TO PLACE SOMEONE WHO IS NOT
ELECTED AND HAVING THAT PERSON,
AS A VOTING MEMBER ON TAX
MATTERS, THAT CONCERNS ME. AND I
SPEAK FROM SOMEONE WHO WORKED
FOR THE BOARD OF EQUALIZATION
AND ALSO HAS BEEN ELECTED. AND
WE ALSO, WHEN I'M PUTTING MY
FORMER COUNCIL HAT ON, WE HAD
WHEN I WAS ON CITY COUNCIL
COMMISSIONERS, THOSE ARE
RECOMMENDATIONS TO THE ELECTED
BODY. AND IF THERE WAS AN ISSUE
THEN THAT ELECTED BODY WOULD
MAKE THAT DECISION. THAT ELECTED
BODY IS ELECTED BY THE PEOPLE.
IT'S YOU, YOU, YOU, IT'S
PROVIDED TRANSPARENCY AND
ACCOUNTABILITY. RIGHT NOW, NO
ONE CONTROLS CAFTA. CTFA,
THEY'RE NOT ELECTED. IT'S MY
UNDERSTANDING THOSE INDIVIDUALS
DON'T RETURN PEOPLE'S CALLS,
EVEN BY ELECTED INDIVIDUALS.
THAT'S CONCERNING. WHEN THOSE
INDIVIDUALS MAKE DECISIONS, FOR
TAXPAYERS, FOR TAXPAYERS, WHEN
YOU HAVE THOSE KINDS OF
POSITIONS, THEN THEY NEED TO BE
HELD ACCOUNTABLE TO SOME ELECTED
BODY WHO WE CAN HOLD AS CITIZENS
OF THE STATE, ACCOUNTABLE. WE
CAN VOTE FOR THEM OR NOT VOTE
FOR THEM. AND TO HAVE THIS
PERSON BE ON THIS BOARD, I HAVE
A CONCERN. AND SO, MADAM CHAIR,
I WOULD JUST ASK, HOW WOULD, THE
DAY THIS ITEM WILL GO ON
SUSPENSE, THERE. TODAY WE'RE
VOTING ON THIS ITEM TO MOVE IT
FORWARD. WE'RE VOTING ON IT, AS
IT WAS WRITTEN RIGHT NOW, I'M
NOT ABLE TO SUPPORT THIS BILL,
BECAUSE OF THIS GLARING CONCERN
THAT I HAVE. AND AGAIN, IF THIS
WAS NOT A TAX MATTER, AND, AND
WE'RE ALL ACCOUNTABLE TO THE
PEOPLE WE REPRESENT, THEY CAN
REACH OUT AND TOUCH US AND TALK
TO US ABOUT WHATEVER SITUATION
MAY BE, BUT TO HAVE SOMEONE SIT
ON THIS BODY WHO HAS GREAT
INFLUENCE AND GREAT
RESPONSIBILITY AND NO ONE IS
ACCOUNTABLE AND THERE'S NO
TRANSPARENCY, I'M CONCERNED WITH
IT. ALL RIGHT. THIS MAKES. NO, I
WANTED TO ECHO ASSEMBLY MEMBER
GIBSON'S CONCERNS AS WELL, YOU
KNOW, JUST THIS IS A POWERFUL
POSITION. AND WHEN IT COMES TO
TAXING THE PEOPLE, HAVING PEOPLE
THAT ARE NOT ELECTED ON THIS IS
VERY CONCERNING, SO I JUST
WANTED THAT. MAY I, THROUGH THE
CHAIR, JUST BE RESPONSIVE AS THE
MEMBERS OF THE COMMITTEE
CURRENTLY ALSO UNDERSTAND THE
FRANCHISE TAX BOARD CONSISTS OF
THREE MEMBERS ELECTED THEMSELVES
AT THE CONTROLLER, THE BOARD OF
EQUALIZATION AND THEN THE
NON-ELECTED. THE DEPARTMENT OF
FINANCE. SO JUST TO REAFFIRM
THAT THAT ALREADY EXISTS, THAT
IS THE CURRENT STRUCTURE. NOW,
AND ACKNOWLEDGING SO FORMER
MEMBER, MISS LIEBER, AS WELL AS
OUR, THE CHAIR OF THE BOARD OF
EQUALIZATION, IT IS MY, MY FULL
DESIRE AND INTENT TO ADDRESS THE
ISSUE OF EQUITY AND
REPRESENTATION. IF THE COMMITTEE
AND CHAIR FEELS OTHERWISE, THAT
PERHAPS CDTFA IS NOT THE
APPROPRIATE PERSON AND BOARD OF
EQUALIZATION WOULD LIKE TO BE
ABLE TO WORK WITH THE BOE AS
WELL TO, IN FINDING AN
APPROPRIATE PERSON AND MAKING
SURE THAT THERE'S EQUITY SHOULD
THIS BILL MOVE FORWARD AND
ADDRESSING THE CONCERNS THAT I
ALSO AGREE WITH AS WELL. SO I
HOPE THAT YOU'LL INTERPRET THAT
AS WANTING TO WORK WITH THE
BOARD OF EQUALIZATION AND
ACKNOWLEDGING THE CONCERNS THAT
HAVE BEEN ADDRESSED. ALL RIGHT.
ARE WE TAKING THAT AS YOU'RE
CLOSE, PLEASE. AND THANK YOU. DO
I HAVE A MOTION AND A SECOND?
I'LL MAKE A MOTION, ASSEMBLY
MEMBER PACHECO MOVES ASSEMBLY
MEMBER GREYSON. SECONDS. CAN WE
HAVE THE VOTE, PLEASE? THE
MOTION IS TO PASS TO
APPROPRIATIONS. IRWIN. IRWIN, I
TO NÓ TO NÓ BANES. GIBSON WE'RE
NOT VOTING. GRAYSON. GRAYSON. I.
PATTERSON NÓ. PATTERSON. NØ.
PACHECO CHACO. I IT'S. WELL,
IT'S 3 TO 2, AND THE SOMEONE
WANTS TO CHANGE. ALL RIGHT, SO,
WE HAVE. IT'S JUST SANDS ON.
OKAY. ALL RIGHT, A SECOND.
MISS BANES WANTS TO CHANGE HER
VOTES. MISS BANES NOT VOTING.
MISS BANES. ABSTAIN TO NOT
VOTING. OKAY, SO THAT BILL IS ON
CALL. THANK YOU. THANK YOU
.
WHY DON'T WE MOVE AHEAD WITH,
MISS BANES? ITEM ONE. I THINK WE
HAVE. ALL RIGHT. THANK YOU. AND
YOU MAY BEGIN WHENEVER YOU ARE
READY, FILE ITEM ONE. I WANT TO
THANK THE COMMITTEE STAFF FOR
THEIR THOUGHTFUL ANALYSIS OF AB
289. THE CURRENT PROGRAM
REFLECTED IN THIS MEASURE.
SUNSETS AT THE END OF THIS YEAR,
AB 2689 WOULD EXTEND THE
CALIFORNIA ALZHEIMER'S DISEASE
AND RELATED DEMENTIA RESEARCH.
VOLUNTARY TAX CONTRIBUTION FUND
TO JANUARY 1ST, 2032. SINCE
1997, THE CALIFORNIA FRANCHISE
TAX BOARD HAS INCLUDED THE
OPTION FOR VOLUNTARY
CONTRIBUTIONS BY TAXPAYERS TO
CONTRIBUTE TO THE RESEARCH FUND
FOR THE PREVIOUS SIX YEARS, THE
FUND HAS RAISED MORE THAN A HALF
MILLION DOLLARS ANNUALLY TO
PROVIDE RESEARCH DOLLARS TO
CALIFORNIA SCIENTISTS TO HELP
BRING AN END TO THE DISEASE.
FUNDS COLLECTED BY THE FTB ARE
ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF PUBLIC HEALTH, WHO
AWARDS GRANTS THROUGH A
COMPETITIVE PROCESS. AS A
PRACTICING PHYSICIAN, I'M KEENLY
AWARE OF THE DEVASTATING POWER
OF ALZHEIMER'S DISEASE AND OTHER
RELATED DEMENTIAS HAVE ON THE
LIVES OF THOSE WHO ARE IMPACTED
AND ON THOSE WHO CARE FOR THEM.
I ALSO KNOW RESEARCH SHOWS
DIAGNOSIS VARIES GREATLY WITHIN
COMMUNITIES OF COLOR. RESEARCH
IS NEEDED TO DO TO BETTER
UNDERSTAND HOW WE WILL NARROW
THE DIVIDE IN DIAGNOSIS AND
TREATMENT. MOVING FORWARD. THIS
VOLUNTARY TAX CONTRIBUTION
EXPANDS WHAT CAN BE DONE IN THE
FIELDS OF RESEARCH TO BETTER
UNDERSTAND AND ULTIMATELY AND
THIS DISEASE, OLDER AGE DOES NOT
CAUSE ALZHEIMER'S, BUT IT IS THE
MOST IMPORTANT KNOWN RISK FACTOR
FOR THE DISEASE. THE NUMBER OF
PEOPLE OF ALZHEIMER'S DISEASE
DOUBLES ABOUT EVERY FIVE YEARS
BEYOND AGE 65, AND ABOUT ONE
THIRD OF ALL PEOPLE AGE 85 AND
OLDER MAY HAVE ALZHEIMER'S
DISEASE. JASON GABBERT IS WITH
ME TODAY REPRESENTING THE
SPONSOR, THE ALZHEIMER'S
ASSOCIATION. THÀNH THANK YOU,
JASON GABBERT WITH THE
ALZHEIMER'S ASSOCIATION. I FIRST
WANT TO THANK DOCTOR BAINS FOR,
AUTHORING THIS BILL AND ALSO HER
CONTINUING FIGHT TO HELP END
ALZHEIMER'S, AS SHE HAD
MENTIONED BEFORE, SINCE 1997,
THE CALIFORNIA FRANCHISE TAX
BOARD HAS INCLUDED THE OPTION
FOR THIS VOLUNTARY CONTRIBUTION
BY TAXPAYERS TO CONTRIBUTE TO
THIS FUND, AND JUST RECENTLY, IN
2024, THE CALIFORNIA DEPARTMENT
OF PUBLIC HEALTH, ALZHEIMER'S
DISEASE PROGRAM AWARDED
APPROXIMATELY $20 MILLION TO
SEVEN DIFFERENT RECIPIENTS FOR
RESEARCH PROJECTS TO RUN THROUGH
RUN FROM 2024 THROUGH 2028. SO
AB 2689 WILL CONTINUE TO ALLOW
THE CALIFORNIA DEPARTMENT OF
PUBLIC HEALTH TO GRANT RESEARCH
FUNDS TO CALIFORNIA RESEARCHERS,
SUCH AS THOSE THAT UCLA, UCF,
AND USC, SO THEY CAN KEEP
INVESTIGATING A VARIETY OF
ASPECTS OF THIS DISEASE, THANK
YOU. AND I REQUEST YOUR I VOTE.
VERY GOOD. DO WE HAVE ANY OTHER
WITNESSES IN SUPPORT? HI.
JENNIFER SNYDER, CAPITAL
ADVOCACY ON BEHALF OF THE
CALIFORNIA LIFE SCIENCES IN
SUPPORT. SELENA, KOBE HORNBACK
WITH THE CALIFORNIA ASSISTED
LIVING ASSOCIATION IN SUPPORT.
DO WE HAVE ANY OTHER ANY
WITNESSES IN OPPOSITION? THÀNH.
ALL RIGHT, DO WE HAVE QUESTIONS
OR COMMENTS FROM THE COMMITTEE?
OKAY, SO WHO MOVED THAT? MR.
PATTERSON MOVED, AND MR. GIBSON
SECONDED, MISS BAINES, WOULD YOU
LIKE TO CLOSE? AND I DO
APPRECIATE YOU. THIS IS A VERY
IMPORTANT, ISSUE, AND I
APPRECIATE YOUR WORK ON IT.
ABSOLUTELY. LOVE BEING THE CHAIR
OF AGING LONG TUM CARE AND
RESPECTFULLY ASKED FOR YOUR
SUPPORT ON THIS. ALL RIGHT. AND
THE MOTION IS TO PASS TO
APPROPRIATIONS. MISS HIGHLAND,
PLEASE CALL THE ROLL ON AB 2689.
THE MOTION IS TO PASS TO
APPROPRIATIONS. IRWIN I IRWIN. I
TO I TO I BAINES. I THINK I HAVE
TO GIBSON. I GRAYSON GRAYSON I
PATTERSON PATTERSON PATTERSON I
JACOB JAKE Ó I IT'S OUT SEVEN
ZERO OKAY THAT BILL IS OUT SEVEN
ZERO CONGRATULATIONS. AND I
THINK WE ARE ON TO MR. MR. MR.
GIBSON. OH NO. THAT'S ON
CONSENT. OKAY. MR. TOTH WE DO
WANT TO CATCH MR. GIBSON AND
MISS BAINES FOR CONSENT BEFORE
WE'RE DONE, I'M SORRY, TOSS GOES
TO. BUT ACTUALLY, BEFORE YOU
LEAVE, WE DO. WHY DON'T WE GO
AHEAD AND DO A VOTE ON SUSPENSE?
I MEAN, I'M SORRY, CONSENT FOR
ADS, ADD ONS TO THE CONSENT
CALENDAR. BAINES CONSENT
CALENDAR. BAINES I GIBSON I
GIBSON I. OKAY, HOW ARE YOU
DOING? OKAY AND THIS IS. THIS
IS, NOT. THIS WAY. SUSPENSE.
YEAH. ALL RIGHT, OUR LAST BILL
FOR THIS HEARING FILE. EXCUSE
ME, FILE ITEM SEVEN, AB 2128.
YES. YOU WANT TO GIVE THAT TO,
BY VICE CHAIR TO. OH. GOOD
AFTERNOON, CHAIR. AND MEMBERS OF
THE COMMITTEE. I'M HERE TODAY TO
PRESENT AB 2128, A BIPARTISAN
MEASURE TO ENSURE FORMERLY
INCARCERATED PEOPLE WILL BE ABLE
TO SECURE EMPLOYMENT WITHIN A
YEAR OF THEIR RELEASE. I WANT TO
BEGIN BY ACCEPTING THE COMMITTEE
AMENDMENT TO POSTPONE THE
IMPLEMENTATION OF THIS BILL BY
ONE YEAR, ALONG WITH ITS
REPORTING REQUIREMENT. IT'S
IMPORTANT TO KEEP THE
LEGISLATION GOAL OF AB 2128 ON
IN INCENTIVIZING FUTURE JOB
CREATION FOR FORMERLY
INCARCERATED INDIVIDUALS,
ACCORDING TO CALIFORNIA
DEPARTMENT OF CORRECTIONS AND
REHAB REHABILITATION, OVER 60%
OF FORMERLY INCARCERATED PEOPLE
ARE UNEMPLOYED WITHIN A YEAR OF
THEIR RELEASE. THESE PEOPLE, WHO
HAVE PAID THEIR DEBT TO SOCIETY
AND MANY HAVE FAMILIES TO
PROVIDE FOR. THEY OFTEN STRUGGLE
TO READJUST BECAUSE IT CANNOT
FIND WORK, WHICH CAN CAUSE MANY
OF THESE PEOPLE TURN BACK TO
CRIME. CONSEQUENTLY, OVER 60% OF
FORMERLY INCARCERATED PEOPLE IN
CALIFORNIA WILL BE ORPHANED
WITHIN THREE YEARS. HOWEVER, IF
A FORMERLY IN CUSTODY PERSON IS
ABLE TO GET A JOB AND IS
EMPLOYED UP TO A YEAR OF
RELEASE, THEIR CHANCE OF
REOFFENDING DROPPED FROM 60% TO
16, HELPING FORMERLY
INCARCERATED PEOPLE SEEK
EMPLOYMENT WITHIN A YEAR OF
RELEASE IS CRITICAL IN HELPING
THESE PEOPLE GET BACK ON THEIR
FEET AND START A NEW LIFE.
HELPING THEM OBTAIN EMPLOYMENT
ALSO SERVES THE INTERESTS OF
PUBLIC SAFETY, AS THEY ARE MUCH
LESS LIKELY TO REOFFEND UNDER
FAIR CHANGE ACT, EMPLOYERS WITH
FIVE OR MORE EMPLOYEES CANNOT
ASK ABOUT A JOB APPLICANT. PAST
CONVICTION HISTORY. DURING THE
HIRING PROCESS, MICROBUSINESSES
WITH FEWER THAN FIVE EMPLOYEES
WHO ARE EXEMPT FROM THEIR FAIR
CHANCE, ARE STRUGGLING IN
CALIFORNIA ECONOMY. THESE MICRO
BUSINESSES ARE THE BACKBONE OF
OUR ECONOMY. CONSISTENT OF
NEARLY 90% OF OUR PRIVATE
BUSINESSES AND APPROXIMATELY 40%
OF OUR WORKFORCE, SMALL BUSINESS
OWNER SHOUTED. BURDEN OF
POTENTIAL RISK OF EMPLOYMENT
DECISION. IT IS PRUDENT,
COMPASSIONATE AND IN THE BEST
INTEREST OF PUBLIC SAFETY TO
ENCOURAGE THEM TO HIRE FORMERLY
IN INCARCERATED INDIVIDUALS. AB
2128 WOULD PROVIDE A 5000 TAX
CREDIT FOR Ã MICRO BUSINESSES
THAT HIRE FORMERLY INCARCERATED
PERSONS WITHIN A YEAR OF
RELEASE, AND THE AB 2128, A
FORMERLY INCARCERATED PERSON
WOULD BE REQUIRED TO WORK FOR
ONE OF THESE BUSINESSES, AT
LEAST FOR AT LEAST SIX MONTHS,
BEFORE SMALL BUSINESS WOULD BE
ABLE TO APPLY FOR THIS TAX
CREDIT. $5,000 IS MUCH LESS THAN
130 132,000 OF THE STATE PAY TO
INCARCERATE SOMEONE TO
RE-OFFEND. THIS BILL MIRRORS A
SIMILAR FEDERAL TAX CREDIT, BUT
IS MUCH NARROWER IN SCOPE. THIS
BILL AIMS TO NOT ONLY HELP MICRO
BUSINESSES, BUT ALSO TO PROMOTE
PUBLIC SAFETY BY REDUCING RISK.
SYMBOLISM. MOST IMPORTANTLY, AB
2128 AIMS TO HELP. FORMERLY IN
INCARCERATE PEOPLE SEEK
EMPLOYMENT WITHIN A YEAR OF
REINTEGRATION INTO SOCIETY. I'M
HONORED TO PRESENT THIS BILL
ALONGSIDE WITH KATIE DIXON AND
BIANCA LUMPKINS, AS SOMEONE WHO
WAS FORMERLY IN INCARCERATED AND
WAS ABLE TO SUCCESSFULLY START A
NEW LIFE, KATIE UNDERSTAND HOW
IMPORTANT IT IS FOR FORMERLY
INCARCERATED PEOPLE TO BE ABLE
TO SEEK EMPLOYMENT AFTER RELEASE
BY ANCHOR IS WHERE SMALL
BUSINESS MAJORITY AND UNDERSTAND
HOW THESE MICRO BUSINESSES WITH
FEWER THAN FIVE EMPLOYEES PLAY A
REALLY IMPORTANT ROLE IN OUR
ECONOMY, AND HOW THIS BILL COULD
BE A WIN WIN FOR FORMERLY
INCARCERATED PEOPLE, SMALL
BUSINESSES, AND ACCEPTED OF
CALIFORNIA. GOOD AFTERNOON,
COMMITTEE MEMBERS, AND THANK
YOU. CHAIR MEMBER ERWIN, THIS IS
A NEW COMMITTEE FOR ME. HOW ARE
Y'ALL DOING? I'M USED TO THE
PUBLIC SAFETY COMMITTEE. YOU
KNOW, IT'S ALL TENSE AND STUFF
IN THERE. AND SO, YEAH, THIS IS
GOOD, YOU KNOW, TO BE IN A
DIFFERENT COMMITTEE. WELL, MY
NAME IS KATIE. I AM A FORMERLY
INCARCERATED CALIFORNIAN. I'VE
SPENT ABOUT TEN YEARS OF MY LIFE
NAVIGATING CALIFORNIA'S CARCERAL
SYSTEM, FROM A JUVENILE UP TO AN
ADULT. I'M ALSO A FORMERLY
HOMELESS CALIFORNIAN. I SPENT
ABOUT THREE YEARS NAVIGATING THE
HOMELESS SYSTEM HERE IN
CALIFORNIA. THANK YOU. ASSEMBLY
MEMBER TREE TO I JUST MET THIS
GUY TODAY. IT'S REALLY GREAT TO
SEE THAT SOMEONE OUT HERE IS
PAYING ATTENTION TO THIS
OVERLOOKED AREA, I'M NOT HERE
TODAY REPRESENTING NO
PROFESSIONAL ORGANIZATION. I'M
OFF TODAY, AND IT WAS VERY
IMPORTANT FOR ME TO COME UP HERE
AND TESTIFY IN SUPPORT, BECAUSE
I DO BELIEVE THIS BILL COMES AT
A CRITICAL TIME. THE ASSEMBLY
MEMBER TALKED ABOUT HOW THE
STATE REALLY AS A WHOLE, IS
STRUGGLING TO FIND QUALITY
WORKERS. YOU KNOW, AT THIS TIME.
AND I DO BELIEVE THIS TAX
INCENTIVE WILL HELP THOSE SMALL
MICRO BUSINESSES NAVIGATE THIS.
A TAX CREDIT IS A MUCH NEEDED
BENEFIT FOR THESE TINY
BUSINESSES, YOU KNOW, AND THEY
ARE OFTEN ON THE FRONT LINES OF
GIVING SOMEONE A CHANCE WHEN
COMING HOME. IT'S OFTENTIMES
YOU'RE REFERRED THROUGH WORD OF
MOUTH OR DIRECT POSTING. YOU
HAVE MORE OF AN OPPORTUNITY TO
MEET A SMALL BUSINESS OWNER AND
REALLY GET A SHOT IN THE DOOR. I
BELIEVE THAT THIS TAX CREDIT
WILL FOSTER A MORE FAVORABLE
DECISION AND A FORM FOR FORMERLY
INCARCERATED PERSON. SO THAT'S
WHY I WAS PERSONAL TO ME. AND
IT'S ALSO POLITICAL BECAUSE THIS
IS AT THE SAME TIME PROTECTING A
SMALL BUSINESS OWNER IN A WAY OF
OFFERING A TAX INCENTIVE. AND I
DO BELIEVE THAT'S A WIN WIN. WE
CAN TACKLE TWO WINS AT THE SAME
TIME. I'M REALLY EXCITED TO SEE
ANOTHER TOOL IN THE PIPELINE FOR
FORMERLY INCARCERATED PEOPLE.
YOU KNOW, WE ARE A POPULATION
THAT IS INCREASINGLY HAVING A
LITTLE BIT MORE ATTENTION PAID
TO AND WE APPRECIATE ALL THE
OPPORTUNITIES. A LOT OF TIMES,
FORMERLY INCARCERATED PEOPLE
WERE GRATEFUL FOR EMPLOYMENT
OPPORTUNITIES AND WERE A LOT OF
TIMES THE BEST WORKERS THAT ANY
EMPLOYER CAN BENEFIT FROM,
ESPECIALLY A SMALL EMPLOYER WHO
DON'T HAVE THE RESOURCES TO BE
REHIRING AND RETRAINING PEOPLE,
AND LASTLY, I'LL SAY THIS.
THERE'S ABOUT A MILLION PEOPLE.
I LOOKED IT UP LAST NIGHT, YOU
KNOW, THAT'S UNEMPLOYED HERE IN
CALIFORNIA. AND ABOUT 400 PLUS
THOUSAND DRAWN FROM UNEMPLOYMENT
BENEFITS. AND I BRING THAT UP
BECAUSE I KNOW WE ARE IN A
DEFICIT, AND I FEEL LIKE WE'RE
IN THIS DEFICIT TOGETHER. YOU
KNOW, IT'S ME AS A CITIZEN. YOU
ALL AS LEGISLATORS AND SMALL
BUSINESSES, WE'RE IN THIS
TOGETHER, AND WE DO NEED TO
TRIAGE OUR PRIORITIES. AND RIGHT
NOW, A TAX CREDIT TO A SMALL
BUSINESS. I THINK IS ALWAYS A
GREAT GAMBLE. YOU KNOW, TO HELP
SEE US THROUGH ECONOMIC
DOWNTURNS, AND YEAH, THANK YOU
SO MUCH. AND I WILL LEAVE IT
RIGHT THERE. I APPRECIATE IT.
THANKS, KATIE. NOT SURE IF I'M
GOING TO SAY ANYTHING MORE THAN
THAN WHAT YOU JUST SAID. SO, SO
WONDERFULLY. THANK YOU FOR
SHARING YOUR PERSPECTIVE,
THANKS, CHAIRWOMAN, ERWIN. VICE
CHAIR. TOM, MEMBERS OF THE
COMMITTEE, SMALL BUSINESS
MAJORITY IS A NONPROFIT
ORGANIZATION. WE ADVOCATE FOR
SMALL BUSINESS OWNERS,
PARTICULARLY MICRO BUSINESS
OWNERS, TO PARTICIPATE FULLY IN
THE ECONOMY AND TO PROVIDE
QUALITY JOBS FOR BOTH THEMSELVES
AND THEIR EMPLOYEES, WE SUPPORT
AB 2120 2128 BECAUSE IT'S
PROVIDING A COMPETITIVE
ADVANTAGE TO SMALL BUSINESS
OWNERS. IT'S A MEANINGFUL
LEGISLATIVE CHANGE THAT WILL
ADDRESS ONGOING WORKFORCE
SHORTAGES. AND OUR RESEARCH
SHOWS IT'S SUPPORTED BY SMALL
BUSINESS OWNERS. WE REPRESENT
OVER 85,000 SMALL BUSINESS
OWNERS WORKING TO BUILD THRIVING
AND EQUITABLE ECONOMIES. AND THE
FAIR CHANCE ACT JUST BRIEFLY
FROM 2018, GENERALLY ALLOWS
EMPLOYERS WITH FIVE OR MORE
EMPLOYEES TO ASK A JOB CANDIDATE
ABOUT CONVICTION HISTORY ONLY
AFTER MAKING A JOB OFFER. BUT AB
2128, THE SECOND CHANCE ACT,
APPLIES TO EMPLOYERS WITH LESS
THAN FIVE EMPLOYEES. ALSO CALLED
MICRO BUSINESSES, AND WOULD
GRANT A TAX CREDIT OF UP TO
$5,000 TO THOSE MICRO BUSINESSES
WHO HIRE A FORMERLY INCARCERATED
PERSON. SMALL BUSINESSES EMPLOY
NEARLY HALF OF THE PRIVATE
SECTOR WORKFORCE AND EMPLOY
APPROXIMATELY 1 IN 3 CALIFORNIA
WORKERS. MANY OF WHOM BEING
WOMEN AND PEOPLE OF COLOR,
OPENING UP A VERY POWERFUL ROLE
FOR SMALL EMPLOYERS TO PLAY IN
ADDRESSING THE LABOR SHORTAGE
AND REDUCING THE HARMS OF MASS
INCARCERATION. EMPLOYERS WHO
HIRE JUSTICE IMPACTED WORKERS
HAVE REPORTED THAT THEIR QUALITY
OF WORK AND CONTRIBUTIONS ARE ON
PAR WITH OR BETTER THAN, OTHER
EMPLOYEES, AND THEIR TURNOVER
RATES ARE NOTABLY LOWER. THIS IS
WHY A ROBUST 84% OF OUR
RESPONDENTS AGREE THAT POLICIES
LIKE 2128 WILL OPEN UP A POOL OF
JOB APPLICANTS THAT DESERVE A
SECOND CHANCE. NOTABLY, ONLY 16%
OF SMALL BUSINESS OWNERS POLLED
DISAGREE WITH THIS. COMPARED TO
MEDIUM AND LARGE SIZED
BUSINESSES, SMALL BUSINESS
OWNERS OFTEN STRUGGLE TO FIND
DEDICATED STAFF WHILE PROVIDING
A COMPETITIVE WAGE. ONE MEASURE
TO GIVE SMALL BUSINESSES AN EDGE
IS THIS TAX CREDIT. THEREFORE,
FISCAL INCENTIVES LIKE AB 2128
WILL PROVIDE THIS COMPETITIVE
ADVANTAGE TO SMALL BUSINESS
OWNERS, CREATE WEALTH AND
COMMUNITIES, COMBAT JOB SCARCITY
IN THEIR COMMUNITIES, AND THE
SECOND CHANCE ACT IS A COMMON
SENSE APPROACH TO ASSIST SMALL
BUSINESS OWNERS AND THE
EMPLOYEES WHO WORK FOR THEM.
THANK YOU. ALL RIGHT. THANK YOU
VERY MUCH. DO WE HAVE ANY OTHER
WITNESSES IN SUPPORT? WITNESSES
IN OPPOSITION. HI. KATIE
HARDIMAN WITH THE CALIFORNIA
TEACHERS ASSOCIATION. THÀNH
UNFORTUNATELY IN OPPOSITION.
THANKS, KATIE. TO BRANDON KNAPP,
REPRESENTING CALIFORNIA TAX
REFORM ASSOCIATION IN OPPOSITION
. ALL RIGHT. THANK YOU. DO WE
HAVE ANY QUESTIONS OR COMMENTS
FROM THE COMMITTEE? MR. GIBSON,
THANK YOU VERY MUCH. I WOULD ASK
THE AUTHOR IF HE COULD PLEASE
CONSIDER ME AS BEING A COAUTHOR
OF THE BILL. I THINK THIS GOES
IN THE RIGHT DIRECTION AND WOULD
LOVE TO BE ADDED AS A COAUTHOR.
I REALLY APPRECIATE THAT. THANK
YOU. THANK YOU. ALL RIGHT. Ó.
MR. PATTERSON, I'D LIKE TO ASK
THE SAME THING TO BE COAUTHOR ON
THIS, AND HOPEFULLY IT CAN COME
OFF SUSPENSE. I THINK THIS IS
VERY, VERY WORTHWHILE FOR ALL
THE REASONS MENTIONED. THANK
YOU. THANK YOU SO MUCH FOR THAT.
SENATOR. MEMBER PATTERSON, THANK
YOU. I WITH ALL THREE OF YOU, I
REALLY APPRECIATE THE WORK YOU
ARE DOING TO INCREASE EMPLOYMENT
FOR THE FORMERLY INCARCERATED.
WE KNOW THAT THAT IS THE BEST
WAY TO, REDUCE RECIDIVISM. SO I
HAD ONE QUESTION. I'M NOT SURE
WHICH ONE OF THE THREE OF YOU
MIGHT BE ABLE TO ANSWER IT. WE
HAVE THE NEW EMPLOYMENT TAX
CREDIT. HAS THAT BEEN,
WORTHWHILE FOR SMALL BUSINESSES?
HAS IT HAS IT BEEN FULLY
UTILIZED? IS THAT SOMETHING
THAT'S, SHOULD IT BE EXPANDED TO
INCLUDE THIS, OR WHY DO A BRAND
NEW TAX CREDIT FOR THIS? I
BELIEVE THAT MY, AB 21 TO 28
WILL PROVIDE EASY ACCESS FOR
MICRO BUSINESSES AND SMALL
BUSINESSES. I UNDERSTAND THAT
OUT THERE WE HAVE LIKE THE
CURRENT LAW, BUT IT'S NOT EASY
TO ACCESS FOR THE FOR THE MICRO
BUSINESSES AND THE SMALL
BUSINESSES. THAT'S THE REASON
WHY THAT I INTRODUCED THIS BILL
STANDALONE CREDIT. DO YOU HAVE
ANY OTHER. YEAH I'LL JUST ADD
THAT THAT THE TARGETED APPROACH
BY AB 2128 TOWARDS VERY SMALL
BUSINESSES IS OF PARTICULAR NOTE
HERE, MOST SMALL BUSINESSES ARE
ACTUALLY THESE VERY SMALL
BUSINESSES. SO COUPLED WITH A
STREAMLINED APPLICATION PROCESS
WORKING OF COURSE, WITH YOUR
WONDERFUL DISTRICT OFFICES TO
RAISE AWARENESS ABOUT THIS
PROGRAM, WE THINK AB 2128 IS THE
BEST APPROACH. ALL RIGHT. WELL,
THANK YOU VERY MUCH. AND WITHOUT
OBJECTION, THAT BILL WILL BE
REFERRED TO OUR Ó. MR. TODD,
WOULD YOU LIKE TO CLOSE? OH, I
REALLY THANK YOU FOR YOUR
DEDICATION TO HELPING, FORMERLY
INCARCERATED PEOPLE TO START A
NEW LIFE AND PROVIDE FOR THEIR
FAMILY IN THE FISCALLY
RESPONSIBLE WAY. SO I, I
RESPECTFULLY ASK FOR YOUR VOTE
WHEN IT IS APPROPRIATE TIME. ALL
RIGHT. THANK YOU VERY MUCH. AND
WITH THAT OBJECTION, THAT WILL
BE MOVING TO OUR SUSPENSE FILE.
THANK YOU. THANK YOU, MISS FIVE.
MR. AND. CHANCE. YEAH THANKS.
ALL RIGHT. OKAY. WE ARE GOING TO
MOVE BACK TO ITEM NUMBER FIVE,
AB 2238. AND WE WILL ENTERTAIN
ANY VOTE CHANGES. BAINES BAINES
NOT VOTING TO I. THAT BILL IS
OUT 4 TO 0 4 TO 2. AND THAT BILL
IS OUT 4 TO 2. SO ALL RIGHT
OKAY. WELL THANK YOU EVERYBODY
FOR ANOTHER RIVETING MEETING OF
THE RIVAS TAX COMMITTEE. AND
WITH THAT, OUR MEETING IS
ADJOURNED. SHE DIDN'T KNOW THAT