Assembly Standing Committee on Accountability and Administrative Review

Good morning and welcome to today's hearing on accountability and administrative review. Before we get started, I'd like to welcome several new members to the Committee. Welcome to our Vice Chair, Assembly Member Dixon, as well as two Assembly Members. Nguyen, Davies, and Baines, who are our newest members of the committee. Looking forward to a productive session working with all of you. I also want to say a thank you to Kala Taylor, who is serving as our committee secretary today. She is on loan from the Assembly's Committee on appropriations, and we really appreciate your help today. Thank you.

Before we get started, just a couple of housekeeping announcements. To ensure that Members of the media and public have access to our proceedings. This hearing will be streamed on the Assembly's website, and members of the public can provide testimony in person here in room 437. To preserve the safety of everyone here and to ensure the public's access to the discussion, please follow the directions of our sergeants. If any Member of the public in the room would like to testify on a Bill, I will ask you to approach the microphone at the appropriate time. Please note that all witness testimony today will be in person. There will be no phone testimony for this hearing.

And lastly, I do want to acknowledge that in the last several years, the Assembly has experienced several disruptions to committee and floor proceedings. We are committed to ensuring that all voices are heard. However, conduct that disrupts, disturbs, or otherwise impedes the orderly conduct of the hearing is prohibited. Thank you in advance for your cooperation.

We do not yet have a quorum. But we've got authors in the room, so we'll go ahead and begin as a Sub-commitee. Our first spill is from Assemblymember Jackson, AB 11. Assemblymember, good morning.

Good morning. Good morning.

Thank you, Madam Chair, members of the committee. I am here to present AB 11, the Affordable California Act, and I am happy to have been able to work with committee staff and the chair on making sure that we can meet our goals in an effective way. And so we are happy to accept the committee's amendments. In brief, AB 11 seeks to identify and provide the legislature with effective policy solutions to address the causes and effects of the rising cost of living in California.

As amended, AB 11 will assign this task to the Little Hoover Commission, which has a rich history of service to this body and the people of California. As noted by the Public Policy Institute of California, a quarter or 10 million Californians worry about paying their bills every single day. A 2019 poll conducted by the California Healthcare Foundation found that over 50% of California families delayed or skipped medical care due to cost.

This included avoiding recommended medical tests or treatments, cutting medication doses in half, or postponing physical or mental care. The California Consumer Price Index is at all-time highs. Californians are wondering why their groceries, gas, and housing are all going up at the same time, and they're wondering where it will end.

Obviously, the State of California is a very complicated and a diverse system, and it's going to be very important that the legislature has every tool that it can have to figuring out what things can we do to make sure that California is affordable and we are not driving out our most vulnerable people in this state. With me today, I have Taneicia Herring, government relations specialist representing the bill, sponsor the California Hawaii State Conference of the NAACP, speaking in support.

Good Morning, Madam Chair and members, as Assemblymember Jackson said. I am Taneicia Herring and I'm with the California Hawaii State Conference of the NAACP. The California Hawaii NAACP principal objective is to ensure the political, educational, social and economic equality of minority citizens in California and eliminate race prejudice. We are proud to sponsor AB 11 because it seeks to remedy a standing problem that many Californians are forced to deal with, the rising cost of living.

The issue impacts Californians throughout the state, whether it's the reduction of affordable housing or the increase of food in food deserts. According to the California Housing Partnership, half of California's 6 million renter households are lower income, with more than 1 million extremely low-income renter households. Renters need to earn 2.8 times the state minimum wage to afford average asking rent in California, which has increased by 11% since 2021. According to the California Association of Food Banks, an estimated 8 million Californians face food insecurity.

One out of every five Californians do not know where the next meal will come from with greater levels of hunger experienced by Black and Latino families. AB 11 is critical during this affordability crisis. Using the Little Hoover Commission to investigate the causes and effects of Californians' rising cost of living will create the opportunity to be more proactive in avoiding the reasons that led to our current crisis. This proactive approach may cause the legislature to halt the problem before it gets even worse.

If this crisis continues without a solution, low-income communities and communities of color will bear the brunt of the consequences. We thank Assemblymember Corey Jackson for writing this important and crucial legislation. We hope this AB 11 will be a starting point for the marathon ahead of us to decrease the cost of living in California. Thank you.

And thank you, Assemblymember Jackson. We'll go ahead and just pause very quickly so that we can establish quorum before we proceed with the hearing. Madam Secretary, please call the role.

[Roll Call].

Wonderful. And we do not have a primary witness in opposition. We'll go ahead and open it up for other witnesses who are here to provide testimony in support. Sir, go ahead.

Good morning, Chair and members. Chris Mayor with the American Federation State, County, and Municipal Employees here in strong support of AB 11.

Thank you. Is there anyone in the room wishing to testify in opposition, seeing none, questions or comments from the committee? Ms. Wilson?

Thank you, Assemblymember Jackson. My only question is in regard to I appreciate you taking the amendment from the committee to, instead of creating a new commission using an existing one, noticing some of the requirements of the study. There have been quite a number of studies in the most recent years since, even since the pandemic, so 2021 and even last year, related to these topics, and most of them have been completed with recommendations to the legislature.

And so I wondered just if you could speak to the benefit of doing this study this way versus taking the existing studies that have been done and using that and why something new in that regard.

Absolutely agree. There have been many studies that have touched on bits and pieces of what we're trying to do as more of a comprehensive thing. The idea is for the Little Hoover Commission to be able to consolidate all those different studies, to be able to put it in one place so the Legislature can get it all in one opportunity, so that we can all then take a look at what legislative things we can do in the coming years to make sure that California is more affordable.

So it's more of a consolidation of many of these studies that are out there, and then it will allow us to find out what studies aren't out there that we need out there so that we can then move forward with that as well.

Okay. And then last but not least, just in response to that one place, this has with an expected that by the end of this legislative session, a report would be given to the legislature then with hopes, I guess, into the fall, when we consider in the new legislative session legislation, potentially that can mitigate the rising costs to families and businesses.

Absolutely.

Thank you so much.

Vice Chair Dixon.

Thank you, Chair. Do we know the cost of what this study would be conducted by the Little Hoover Commission? Have we?

We do not yet. We would have to wait for Appropriations to let us know that.

Is there any projected estimate?

Not yet. We do not have a projected estimate yet.

I know. On the couple of things on the composition of the 11-member commission. So that's no longer?

No, that's no longer. So, we are not looking at creating a whole new.

All right. So I can disregard that. What I was going to say is, I guess I don't know the answer. Perhaps you do. On the Little Hoover Commission, which is a fine, highly regarded commission, to study these kinds of matters, would there be housing experts, real estate experts, et cetera? I noticed the realtors have wanted to be amended. Now, this is maybe before you went with the Little Hoover Commission.

That was before we transitioned to Little Hoover Commission. They were asking for a place at the table in which we didn't mind. I think now that Little Hoover Commission is already established and they already have a process of what they're doing, then we're not duplicating efforts.

So, let me understand what the Little Hoover Commission would do. They would not do new research. They would take existing research and bring it all together, aggregate it. So, it's not original research; it's taking existing research.

That's the goal. What we've been told is that many of these studies already exist, but they exist in different places. And Hoover has; the Little Hoover Commission has already done many of these studies already, and so now we're just asking them to consolidate it and give it to the legislature to be able to easily absorb it and have it readily at hand.

Okay. So many of the studies that have already been done on housing and they've been identified, maybe they haven't been consolidated, but as I understand, there have been a number of other studies by the London School of Economics, Housing California, the Legislative Analyst Office. I know this is my first year here but have those studies been incorporated in legislation that the legislature has considered in years past?

I can't speak to past legislatures. All I know is that the studies have been out there as a legislature. We haven't done a good job to address it. And so this is in hopes to make it easier for our colleagues to be able to have at hand. And so, starting next year, we can really address what I'm sure many of our constituents are saying, and that is it's hard to live in California.

And at this point, my district, which is the 60th, was usually the place you go to for affordable housing. And now that's gone, and the next community over is Arizona. So if we expect people to stay in California, we have many groups, people of color all over California who've traditionally in generations have been living there, have now been priced out of the communities that they have lived in for generations, particularly the Bay Area and other places.

And so my hope is that this will give us a more of a sense of urgency and also give us a sense that we now have it before us. We don't have to go searching for places, and we can get to work to address these issues.

Well, I commend your determination on that. Just from what we've all read and know about a lot of different things about housing, you're right. But there is a significant cost to the construction of housing that adds to the sale price of housing. That's the regulatory costs. CEQA. Is there any study that addresses the cost of CEQA and adding to the cost, the lawsuits, the developer costs that get passed on to the homebuyer? Are we looking at that?

Because that's one area, as I understand it, that's really never been addressed.

Well, absolutely. I think the idea is that we have to do a few things. Number one, I'm hearing the same issues as you have addressed at this time, but we're also making sure that we hear that, number one, in California, the majority of the affordability issue is in housing. And how do we address the housing issue? But as you know, we've also now have been facing issues when it comes to our utilities, when it comes to issues of our energy, when it comes to, right?

So there's ongoing, and it can be pretty daunting when you look at the data and try to figure out how to do these things. And so it is my hope that number one, we can begin to fix those issues, kind of digest it in a simpler way and then begin to get to work on it and agree from an objective manner that objectively, this is what the data tells us. Objectively, this is what's been recommended to us.

And so there's no reason why we all can't get on board once that happens.

Well, I would hope that is the case. It's just that I don't even see where the cost of regulation. I mean, even though these prescriptive directions are no longer part of the recommendation, it's just that addressing. You talk about root causes. I'm concerned that we're not looking at the regulatory costs.

But I'm more than happy to work with your office to make sure that we can look at that and to see if we can find some language that might be able to fit that concern. I'm not opposed to that at all.

And then, when did you say how long this would take?

By the end of this year, we are hoping to be able to get it so that by the next legislative session, we have something to act on.

Okay, very good. Thank you.

Thank you, Vice Chair. Follow-up question from Assemblymember Wilson.

Thank you.

From Assemblymember Dixon noted that the prescription had changed. And I thought the amendment was just the commission, but the requirements for the commission to study but not limited to that, did not change, right?

That is correct. Okay. Yes.

I just wanted to make sure I thought it did, and then.

Thank you.

I thought the only amendment was who was doing the work.

Correct. Yes.

Thank you.

Thank you. All right, move the bill. Thank you. Motion from Assemblymember Wilson and a second from Assemblymember Rodriguez. Assemblymember, would you like to close?

Sure. Understanding the best way to maintain and retain the state's middle-class population and how to create upward mobility for individuals and families who are 200% or below the federal poverty rate are essential to California's future. And it is very important to understand that as we go with other programs and as we try to have the.

And we will achieve the cleanest state in California through our climate change efforts; we want to make sure that there are people of all economic backgrounds that will be able to enjoy the state in the future. So with that, I ask for your aye vote.

Thank you. And we've got a motion by Assemblymember Wilson, second from Assemblymember Rodriguez. The motion is do pass as amended and re-referred to the Committee on Appropriations. Secretary, please call the roll.

[Roll Call]

All right, 5-0. That bill is out. Thank you, Assemblymember Jackson. And before we jump into our second and last bill, we are going to go ahead and adopt the committee rules now that we have a quorum. The rules have been distributed to all members'offices. I hope that everyone on the committee has had an opportunity to look them over. Do we have a motion and a second for the adoption of the committee rules? Thank you. We've got a motion from Assemblymember Rodriguez, second from Assemblymember Nguyen.

Madam Secretary, please call the roll.

[Roll Call]

All right, 7-0. Our committee rules are now adopted, and with that, we'll go ahead and move to our next author. Good morning, Assemblymember Ramos. Whenever you are ready.

Thank you, Madam Chair and members. AB 3349 would authorize Patton State Hospital, which is located in my district, to enter into an agreement with a nonprofit or local government to provide housing and mental health services to the Inland Empire's homeless population. As a county supervisor, I've seen how homelessness continues to be a number one issue, but yet when you deal with local jurisdictions, sometimes there's a divide of how to work towards solutions.

This in front of us today is a regional approach to an area of homelessness that affects all of us in the State of California. As it stands, the County of San Bernardino identified a 6.6 increase in homelessness since its last point in time count and found that 43.5% of those counted were identified as being homeless for one year or more and having a disabling condition such as mental illness, chronic health conditions, and physical disability.

The City of San Bernardino has seen 175% increase in homelessness over the past five years, which has led them to recently call for a state of emergency. What we are seeing at the local level is an ongoing need for mental health services as well as housing for those who are homeless. There is urgency for a solution, and AB 349 starts to move in that direction.

A successful model of this approach lies in the City of Norwalk, where an award-winning Homes for Life foundation entered into an agreement with the Department of State Hospitals to operate on the former grounds of the Metropolitan State Hospital. Surplus property was being audited by the governor's office. We asked that Patton State Hospital be included, and it was. So there is surplus property that's been identified at Patton State Hospital. At Metropolitan State Hospital, through this model, the program has assisted thousands in transitioning into long-term community-based housing. We have a starting point for constructing a similar life changer in the Inland Empire by converting Patton State Hospital surplus property and collaborating with our local governments and nonprofit organizations; we have a starting point to ensure that we're bringing mental health issues and homelessness to get the resources they need. Fortunately, local and state leaders have forged strong working relationships.

If each entity contributes in designing our own model program in our area and then together leverages their resources, we can save and we will change lives. With me today is the mayor of San Bernardino. City Mayor Helen Tran.

Move the bill.

Good morning, Madam Chair and honorable assembly members. My name is Helen Tran and I'm the mayor of the City of San Bernardino. It is an honor to speak before you this morning in support of Assembly Bill AB 349. The current legislative platform of the City of San Bernardino was approved by the council on February 1, 2023, and supports regional initiatives to reduce and prevent homelessness, as well as regional efforts to secure state and federal funding for mutually beneficial projects, facilities, and shared resources.

AB 349 is consistent with the city's legislative platform. In the 2022 San Bernardino County Point-in-Time Count, 1350 individuals were counted as homeless in the City of San Bernardino, which is 28% increase from the 2020 count, and we make up 40% of the county's homeless population that reside in our city alone. I recently participated in the 2023 Point-in-Time Count and personally witnessed the heartbreaking conditions that exist for our residents experiencing homelessness.

Specifically, while we were driving through downtown, we encountered a middle-aged homeless woman blocking traffic in front of our car and would not allow any vehicles to pass. It was a very cold morning, and she had very minimal clothing on. You could visibly see she was experiencing a mental episode right before our eyes. Last month, the City of San Bernardino joined with Los Angeles and Long Beach in declaring a homeless state of emergency.

Our emergency declaration included a comprehensive action plan and the commitment of millions of dollars in resources. The most difficult challenge we face in assisting our unhoused population is the lack of mental health professionals and related facilities in our region. They just aren't in the Inland Empire. AB 349 will provide us with a facility at the underutilized Patent State Hospital that will help our city and our county to provide housing and mental health services to our homeless population.

This will directly impact our efforts to help these residents to move away from the sad condition and move towards a better future. This is critical. We strongly urge your support for this effort. Thank you.

Thank you. And we do not have a primary witness in opposition. We'll go ahead and open it up for testimony from folks in the room. Is there anyone in the room wishing to testify in support of AB 349? Seeing none. Anyone wishing to testify in opposition to AB 349? Seeing none. We'll open it up for questions or comments from committee members. Assemblymember Rodriguez?

Yes. I want to thank the author for bringing this bill forward. It's much needed, especially in the Inland Empire, where we have a lot of issues regarding homelessness, mental health, resources. So I want to thank them for bringing that forward. Great idea. Obviously, we have the surplus land there and the ability to create these homes and services for the homeless people in need.

Thank you, Assemblymember Dixon.

Thank you, Chair. This is Assemblymember Ramas and mayor - this is a long time coming, and I see it as a role model in your district, formerly in our other district, but in Costa Mesa, we have Fairview, which would be, this would be a good lesson and learning of how we could redirect Fairview, a similar kind of state mental hospital, and convert it into this type of facility. That's much needed. I applaud your efforts.

I'm strongly supportive because I look forward to being a model for the rest of our regional efforts to deal with homelessness and mental illness. So we all know that's a serious crisis in our state, and we look forward to watching your great success. So thank you.

Thank you so much.

Thank you. I would just add that I think we all recognize that the interwoven crises of homelessness and mental health are the number one challenges facing every community all across the State of California, and I really appreciate this creative and regional approach and solutions-oriented approach to tackling the challenge. So with that. Assemblymember, you have a motion and a second. Would you like to close?

I ask for your aye vote.

All right, thank you. We've got a motion from Assemblymember Rodriguez, second from Assemblymember Wilson. The motion is do pass and refer to the Committee on Appropriations. Secretary, please call the roll.

[Roll Call]

7-0. Unanimous support. That bill is out. Thank you, Assemblymember.

Thank you so much. And we'd be honored to accept any co-authors on the bill also.

Wonderful. Yeah. You can sign us up. Sign me up.

Thank you.

All right.

Rodriguez, Stephanie, Wilson, Diane, Bains, Davies.

There you go.

One more. Cottie, you're on.

I'm on.

All right, unanimous. Thank you so much.

Thank you. Thank you, Assemblymember. And that concludes the business of this morning's accountability and administrative review hearing. With that, we are adjourned.

I'm sorry, I just wanted to change a vote real quick, if I could.

Okay. Yes, we will. Honor vote changes. My apologies.

AB 112; to a yes.

Vote change. AB 11, Jackson: Davies from not voting to aye. Ms. Davis? Davis. Aye.

Okay, so now we are at 6-0 for AB 11 from Assemblymember Jackson. And with that, we are adjourned. Perfect.