GOOD AFTERNOON, EVERYBODY, AND
WELCOME TO THIS HEARING OF THE
ASSEMBLY COMMITTEE ON REVENUE
AND TAXATION. AS A REMINDER TO
THOSE IN THE ROOM AND WATCHING
REMOTELY, PLEASE MAKE SURE TO
SUBMIT YOUR POSITION LETTERS AT
LEAST ONE WEEK PRIOR TO, HAVE
YOUR, LETTER REFLECTED IN THE
BILLS ANALYSIS. ADDITIONALLY,
PURSUANT TO OUR COMMITTEE RULES,
BILLS WITH A FISCAL IMPACT OF
PLUS OR -150,000 WILL BE
PREFERRED TO OUR SUSPENSE FILE,
WHICH WILL BE TAKEN UP AT A
LATER HEARING. FINALLY FILE ITEM
NUMBER THREE SJ R 14 BY SENATOR
BECKER HAS BEEN PULLED BY THE
AUTHOR. IT LOOKS LIKE WE HAVE A
QUORUM, MISS HIGHLAND. PLEASE
CALL THE ROLL. IRWIN HERE. IRWIN
HERE TO. I'M HERE TO HEAR
BAINES. BAINES HERE. GIBSON
HERE. GIBSON HERE. GRAYSON.
GRAYSON HERE. PATTERSON.
PATTERSON HERE. RIVAS RIVAS
ABSENT. ALL RIGHT, SO WE DO HAVE
A QUORUM, BUT WE ARE GOING TO
MOVE TO RECESS UNTIL THE SENATE
IS OUT. SO, PLEASE HAVE YOUR
STAFF WATCH TO SEE WHAT IS GOING
ON, AND WE'LL MEET BACK HERE AS
SOON AS THE SENATE IS OUT. I'M
SORRY, WE DO NOT HAVE AN
ESTIMATE. I HAVE THE SENATE BIAS
LUNCH OR SOMETHING, AND
UNFORTUNATELY, WE CAN YOU CAN
KEEP SITTING HERE, BUT WE WANT
TO LET YOU GO FREE UNTIL THE
SENATE SENATORS DECIDE TO, GRACE
US WITH THEIR PRESENCE. ALL
RIGHT. AND WITH THAT, WE ARE ON
RECESS.
ALL RIGHT. WE ARE READY TO GO
BACK IN SESSION. AND, WE'LL MOVE
TO THE FIRST ITEM ON OUR AGENDA,
WHICH IS FILE ITEM ONE. SB 2030
BY SENATOR SOURTOE. 32 3230 SB
230. IT IS NOT. IT'S 3:00.
STRAIGHT UP. AND YOU MAY BEGIN
WHENEVER YOU'RE READY. WELL,
THANK YOU VERY MUCH, MADAM CHAIR
. I'M HERE TO PRESENT SB 230.
THIS BILL, IN PARTIAL CONFORMITY
WITH FEDERAL TAX LAW, WOULD
ALLOW INCOME ELIGIBLE TAXPAYERS
TO CLAIM A TAX DEDUCTION EQUAL
TO THE AMOUNT THE TAXPAYER
CONTRIBUTES TO AN HSA, WHICH IS
A HEALTH SAVINGS ACCOUNT. THE
BILL LIMITS THE DEDUCTION TO
INDIVIDUALS AND HOUSEHOLDS AT OR
BELOW ESTIMATED MEDIAN INCOMES.
I ALSO WANT TO THANK THE
COMMITTEE FOR THEIR HELPFUL
FEEDBACK IN, WITH SOME OF THE
PARTICULARS OF THE LANGUAGE
SHOULD THIS BILL MOVE FORWARD.
AND I HOPE IT DOES. I PLAN ON
INTRODUCING AMENDMENTS THAT
WOULD MAKE 2025 THE FIRST TAX
YEAR FOR IMPLEMENTATION AND
WOULD ENSURE AN APPROPRIATE
PENALTY FOR NON QUALIFIED
DISTRIBUTIONS. I ALSO WANT TO
CLARIFY AN IMPORTANT ISSUE
RELATING TO THE PURPOSE OF THIS
BILL. IT IS TRUE THAT IN ORDER
TO OPEN AN HSA, THE ACCOUNT
OWNER MUST BE ENROLLED IN A HIGH
DEDUCTIBLE HEALTH PLAN. BUT LET
ME BE CLEAR THE BILL DOES NOT
PROMOTE OR INCENTIVIZE
INDIVIDUALS TO ENROLL IN HIGH
DEDUCTIBLE HEALTH CARE PLANS. IT
GIVES RELIEF SPECIFICALLY TO
LOWER INCOME INDIVIDUALS WHO
ALREADY HAVE THESE HIGH
DEDUCTIBLE HEALTH PLANS, BECAUSE
THAT'S ALL THEY CAN AFFORD,
BECAUSE HIGH DEDUCTIBLES MEAN
LOWER THEIR PREMIUMS. AND SO
THAT'S WHAT THEY WIND UP WITH.
AND THIS HELPS THEM GET RELIEF
FROM THAT. TO THIS POINT,
CALIFORNIA HAS NOT CONFORMED TO
FEDERAL TAX LAW RELATING TO HSAS
BECAUSE OF EQUITY CONCERNS
AROUND HIGHER INCOME INDIVIDUALS
USING THESE ACCOUNTS AS A
LOOPHOLE TO SHIELD THEIR TAXABLE
INCOME. THE INCOME LIMITS ON
THIS BILL ADDRESS THIS CONCERN
AND MAKE SURE THAT THE OPTIONAL
TAX RELIEF IS AVAILABLE TO
SUBMEDIAN INCOME INDIVIDUALS
SHOULD THEY DECIDE THAT IT MEETS
THEIR NEEDS AND FITS THEIR
CIRCUMSTANCES. AND WHEN THE TIME
COMES, I WOULD APPRECIATE AN AYE
VOTE, THANK YOU VERY MUCH. DO
YOU HAVE ANY WITNESSES IN
SUPPORT? I DID NOT BRING ANY
WITNESSES TODAY. ALL RIGHT. AND
THEN WE HAVE, WITNESSES IN THE
ROOM IN SUPPORT. YES. THANK YOU,
MADAM CHAIR. TIM MADDEN,
REPRESENTING THE CALIFORNIA
CHAPTER OF THE AMERICAN COLLEGE
OF EMERGENCY PHYSICIANS. WE'RE
IN SUPPORT AND IN LISTENING TO
EMERGENCY PHYSICIANS, WE ARE
SEEING AS THE CENTER OUTLINED
MORE PEOPLE MOVING TOWARDS THOSE
HIGH DEDUCTIBLE PLANS. AND TO
THE EXTENT THAT THIS TAX BREAK
WOULD INCENTIVIZE THEM TO THEN
PUT SOME MONEY AWAY TO HELP THEM
PAY THOSE PORTIONS THAT ARE
COVERED IS A GOOD THING. FOR
THOSE REASONS, WE RESPECTFULLY
ASK FOR YOUR VOTE. THANK YOU.
FAITH FORGES ON BEHALF OF
CALIFORNIA AGENTS AND HEALTH
INSURANCE PROFESSIONALS ALSO IN
SUPPORT FOR THE REASON STATED.
THANK YOU. GOOD AFTERNOON, CHAIR
AND MEMBERS. JENNIFER TANNEHILL
WITH AARON REED AND ASSOCIATES
ON BEHALF OF THE CALIFORNIA
SOCIETY OF ENROLLED AGENTS. ALSO
IN SUPPORT. THANKS THANK YOU. DO
WE HAVE ANY WITNESSES IN
OPPOSITION?
AFTERNOON. GOOD AFTERNOON. CHAIR
AND MEMBERS DIANA DOUGLAS WITH
HEALTH ACCESS CALIFORNIA, THE
STATEWIDE HEALTH CARE CONSUMER
ADVOCACY COALITION. I'M HERE IN
OPPOSITION TO SB 230. WE DO
APPRECIATE THAT THE AUTHOR HAD
PREVIOUSLY TAKEN SOME OF OUR
CONCERNS AND AMENDED THE
LANGUAGE OF THE BILL TO ADD
INCOME LIMITS TO THE TAX
DEDUCTION. HOWEVER, HEALTH
ACCESS CALIFORNIA REMAINS
OPPOSED TO THIS BILL. HEALTH
SAVINGS ACCOUNTS THEMSELVES DO
NOT PROVIDE HEALTH CARE
COVERAGE, BUT INSTEAD ARE LINKED
TO HIGH DEDUCTIBLE HEALTH PLANS.
THESE TYPES OF HEALTH PLANS ARE
UNAFFORDABLE AS CONSUMERS WILL
HAVE TO PAY POTENTIALLY
THOUSANDS OF DOLLARS IN
DEDUCTIBLE COSTS BEFORE THEIR
PLAN COVERS ANYTHING IN 2023.
THE MINIMUM DEDUCTIBLE FOR A
HIGH DEDUCTIBLE HEALTH PLAN WAS
1500, AND MANY RANGED UP TO
$4,000. HEALTH SAVINGS ACCOUNTS
ARE LINKED TO THESE PLANS WITH
THE ORIGINAL AND MISGUIDED
INTENTION THAT IT WOULD INCREASE
COST CONSCIOUSNESS WITHIN HEALTH
COVERAGE. INSTEAD, HSAS HAVE
ONLY ACTED AS A BAND-AID, WHILE
HEALTH CARE COSTS AND ANNUAL
DEDUCTIBLES KEEP INCREASING,
INCREASING ANNUALLY, PROVIDING
THIS DEDUCTION DOES NOT ADDRESS
SYSTEMIC AFFORDABILITY ISSUES
AND INSTEAD ONLY ENCOURAGES
RELIANCE ON THESE LOW VALUE
PLANS THAT CAN REALLY HAVE
CATASTROPHIC FINANCIAL IMPACTS
ON ENROLLEES WHO NEED CARE,
ESPECIALLY AT THE LOWER INCOME
LEVELS. ADDITIONALLY, SB 250 IS
PROJECTED TO COST CALIFORNIA'S
GENERAL FUND IN LOST TAX REVENUE
DURING A DIFFICULT BUDGET YEAR
WHEN THE STATE IS ALREADY FACING
POTENTIAL CUTS TO OUR HEALTH
CARE SAFETY NET. PROGRAMS THAT
ARE DESIGNED TO SERVE EXACTLY
THESE PEOPLE. POLICIES LIKE
THESE THAT BOLSTER HSAS ONLY
SERVE TO SUPPORT HIGH VALUE OR
HIGH COST, LOW VALUE HEALTH CARE
OPTIONS AS SUCH, I THANK YOU FOR
YOUR TIME AND ASK FOR YOUR NO
VOTE ON THIS BILL. THANK YOU. DO
WE HAVE ANY OTHER WITNESSES IN
OPPOSITION? GOOD AFTERNOON,
CHAIR AND MEMBERS. BETH
MALINOWSKI WITH SEO CALIFORNIA.
ON BEHALF OF OUR 700,000 MEMBERS
AND THEIR FAMILIES HERE IN
OPPOSITION TODAY. GOOD
AFTERNOON, MADAM CHAIR, AND
MEMBERS, BRYANT MIRAMONTEZ WITH
ACP CALIFORNIA AND RESPECTFUL
OPPOSITION. DO WE HAVE ANY
QUESTIONS OR COMMENTS FROM THE
COMMITTEE? I JUST HAVE ONE
QUESTION. USUALLY WHEN YOU DO
CONFORMITY TO DECREASE CONFUSION
. THÀNH DO YOU THINK THAT
OBVIOUSLY WE WANT TO HAVE INCOME
LIMITS HERE, AND I APPRECIATE
YOU ADDRESSING THAT IN YOUR
BILL. DO YOU THINK THAT THOUGH
THESE INCOME LIMITS THAT ARE
DIFFERENT THAN WHAT'S HAPPENING
THAN THE INCOME LIMITS AT THE
FEDERAL LEVEL WILL CAUSE
ADDITIONAL CONFUSION AND PEOPLE
WON'T FIGURE IT OUT UNTIL THEY
REALIZE THEY'RE NOT ELIGIBLE?
WELL, MOST OF THE PEOPLE THAT
ARE FIGURING THAT OUT ENROLL THE
SERVICES OF TAX PEOPLE THAT KNOW
THESE LAWS AND THEY'RE KEPT UP
TO DATE ON THEM YEARLY. AND SO
THAT WOULD BE AN ISSUE THAT
THEY'D HAVE TO TAKE UP WITH A
TAX PERSON IF THEY MISSED IT.
BUT I DOUBT THAT THEY WOULD,
BECAUSE THE ENROLLED AGENTS I'M
MARRIED TO ONE ARE WELL AWARE OF
THE NEW LAWS THAT COME OUT,
ESPECIALLY AS THEY PERTAIN TO
SOME OF THEIR LOWER INCOME,
CLIENTS AND THEIR NEEDS TO TRY
AND FIND AS MANY TAX DEDUCTIONS
AS THEY CAN SO THAT THEY CAN
HAVE AFFORDABLE HEALTH CARE FOR
THEM, OR AT LEAST HAVE HEALTH
CARE AT ALL, BECAUSE A LOT OF
TIMES THEIR OPTION IS NOT TO
HAVE IT AT ALL. AND WE DON'T
WANT TO LEAVE THEM WITH THAT
OPTION. ALL RIGHT. WELL, THANK
YOU, VERY MUCH. SENATOR SATO,
WOULD YOU LIKE TO CLOSE US, NO,
I THINK THAT CAN BE MY CLOSING,
I'VE ALREADY ADDRESSED THE
ISSUES RELATED TO, THE CONCERNS
THAT THE OPPONENTS HAVE SAID,
YOU KNOW, BOTTOM LINE IS, WHEN
PEOPLE CAN BARELY AFFORD
PREMIUMS, THEY GO TO THE HIGHER
HEALTH CARE DEDUCTION, TYPE OF
PLANS. AND THOSE ARE FEDERAL,
FEDERALLY. YOU KNOW, THOSE ARE
LEGAL FEDERALLY. WE'RE NOT GOING
TO CHANGE THAT IN THIS BILL, BUT
CERTAINLY WE CAN HELP PEOPLE
THAT ARE KIND OF MIRED IN HAVING
TO DO THAT, HAVING TO MAKE THOSE
PREMIUMS BY GIVING THEM THIS
OPTION TO, TO HELP REDUCE THEIR
TAXES. ALL RIGHT. VERY GOOD.
AND, WITHOUT OBJECTION, THIS
BILL IS GOING TO BE REFERRED TO
OUR SUSPENSE FILE. THANK YOU,
THANK YOU. NEXT UP WE HAVE FILE
ITEM TWO, SB 1172 BY SENATOR
GROVE. WHENEVER YOU ARE READY.
THANK YOU, MADAM CHAIR, I
APPRECIATE THE OPPORTUNITY TO
PRESENT SB 1172, WHICH IS
SPONSORED BY THE AMERICAN CANCER
SOCIETY, CANCER ACTION NETWORK,
AND THE UNIVERSITY OF CALIFORNIA
. DONATIONS TO THE CALIFORNIA
BREAST CANCER RESEARCH FUND AND
CALIFORNIA CANCER RESEARCH FUND
CAN BE USED AS A TEXT DONATION
CHECKOFF LIST ON YOUR TAXES, THE
CALIFORNIA BREAST CANCER
RESEARCH FUND SUPPORTS, NEW
APPROACHES TO DIAGNOSE, TREAT,
AND PREVENT BREAST CANCER,
INCLUDING INVESTIGATING THE
CANCER CAUSES OF BREAST CANCER
AND IMPROVING SUPPORT NETWORKS
FOR UNDERSERVED CALIFORNIANS.
THE CALIFORNIA RESEARCH OR
CANCER RESEARCH FUND SUPPORTS
RESEARCHING RELATING CAUSES OF
DETECTION, PREVENTION OF CANCER,
AND INCLUDING EXPANDING
COMMUNITY BASED EDUCATION FOR
CANCER, AND PROVIDING PREVENTION
AND AWARENESS ACTIVITIES IN THE
COMMUNITIES. BOTH FUNDS ARE
CURRENTLY EXPECTED TO RETIRE TO
EXPIRE IN 2025. SB 1172 WOULD
EXTEND THE DATE FOR THIS CANCER
CHECKOFF FOR YOUR INCOME TAXES.
UNTIL 2032. WITH ME TODAY TO
TESTIFY IS THE SPONSOR OF THE
BILL, JENNIFER CHASE WITH THE
UNIVERSITY OF CALIFORNIA. GOOD
AFTERNOON, CHAIR AND MEMBERS.
CHEN CHASE, ON BEHALF OF THE
UNIVERSITY OF CALIFORNIA, èC IS
PROUD TO CO-SPONSOR SB 1172 WITH
THE AMERICAN CANCER SOCIETY
CANCER ACTION NETWORK. THE èC
ADMINISTERS THE CALIFORNIA
BREAST CANCER RESEARCH FUND AND
THE CALIFORNIA CANCER RESEARCH
FUND. EACH FUND PROVIDES
APPROXIMATELY $450,000 ANNUALLY,
AND THE FUNDING IS DISTRIBUTED
THROUGH A COMPETITIVE GRANT
PROCESS TO SUPPORT HIGH IMPACT
RESEARCH. THESE FUNDS HAVE
SUPPORTED INVESTIGATIONS ON
TOPICS LIKE IDENTIFYING AND
ELIMINATING ENVIRONMENTAL
FACTORS THAT MAY CAUSE BREAST
CANCER, AND DEVELOPING A ROBOTIC
STEERABLE SURGICAL TOOL TO
REMOVE BRAIN TUMORS. SB 1172
WILL EXTEND THESE IMPORTANT TAX
CHECKOUT PROGRAMS AND ENSURE
THAT CRITICAL FUNDING TO SUPPORT
BREAST CANCER AND CANCER
RESEARCH REMAINS IN PLACE. WE
RESPECTFULLY ASK FOR YOUR VOTE.
THANKS. THANK YOU. DO WE HAVE
ANY OTHER WITNESSES IN SUPPORT?
WITNESSES IN OPPOSITION?
COMMENTS FROM THE COMMITTEE. SO
MOVE. ALL RIGHT. WE HAVE A
MOTION. ALL RIGHT, A MOTION AND
A SECOND, WOULD YOU LIKE TO
CLOSE? THANK YOU. MADAM CHAIR.
AND MEMBERS. IT'S JUST A IT'S
JUST AN OPTION FOR PEOPLE TO
DONATE OR GET A TAX DEDUCTION
OFF THEIR TAXES FOR GIVING MONEY
TO THIS WONDERFUL ORGANIZATION.
RESPECTFULLY ASK FOR AN AYE
VOTE. ALL RIGHT. THANK YOU VERY
MUCH. AND WE HAD A MOTION BY
ASSEMBLY MEMBER TO AND A SECOND
BY ASSEMBLY MEMBER, ASSEMBLY
MEMBER BANES AND THE MOTION IS
DUE PASSED TO APPROPRIATIONS.
MISS HOLLAND, PLEASE CALL THE
ROLL ON SB 1172. THE MOTION IS
DUE. PASS TO APPROPRIATIONS.
IRWIN. I IRWIN. I TO I BAINES.
BAINES I GIBSON I GIBSON I
GRAYSON. GRAYSON I JIM PATTERSON
THREE OF US THREE OF US I THAT
BILL PASSES 123456. THANK YOU.
THAT BILL IS OUT 6 TO 0. ALL
RIGHT. WHY DON'T WE GIVE OKAY.
SO THIS IS MR. PATTERSON. WILL
NOT BE RETURNING. ALL RIGHT. AND
WITH THAT, OUR MEETING IS
ADJOURNED. THERE WAS ANOTHER. NO
ONE.