Assembly Standing Committee on Revenue and Taxation

We have also reinstated the suspense file this year. Bills with a fiscal impact of plus or minus 150,000 will not be eligible for vote immediately after presentation. So, AB 1026 by Assembly Member Ta has been pulled from today's agenda by the author. And it looks like we have a quorum. Ms. Highland, please call the roll.

[Roll Call]

Valencia? Here. Zbur? Yes, we have a quorum.

All right, we have a quorum, and we will take up AB 877 by Assembly Member Addis. Assembly Member, please begin when you are ready.

Well, first of all, thank you, Madam Chair, Members of the Committee, the Committee staff, as well as my own staff who worked extensively on this with us and our witness who's here today. Today I'm here to present AB 877, the Good Neighbor Tax Credit.

This bill has been developed with input from Committee staff, and we have accepted all proposed amendments, and as we are living in real time, natural disasters are a constant reality for most Californians. From massive wildfires to the storms and floods that have rocked our communities for the first three months of 2023, what used to be once-in-a-generation disasters are occurring every year. Through the tremendous amounts of damage caused by these natural disasters, California's urgent need for emergency housing shelter is exacerbated.

Over my own first months in the Legislature, much of California has faced some of the most severe and destructive storms in history with thousands of people being displaced, their homes either destroyed or so badly damaged that they cannot immediately return. And while disaster response organizations like Cal OES, FEMA, and the American Red Cross assist evacuees during floods and fires, they alone cannot meet the need for emergency shelter. As such, evacuees often must turn to hotels, inns, and other temporary lodging for shelter during disaster.

And when they cannot find such lodging, some are forced to sleep in their cars or shelter in other places. And we believe it's incumbent on us to create workable solutions in the midst of this crisis. We can and we should help our most impacted neighbors by encouraging and supporting small businesses to help the displaced. And this is where 877, the Good Neighbor Tax Credit comes in.

AB 877 will provide a tax credit to smaller establishments who go above and beyond their neighbors, providing cost-free shelter for evacuees of natural disaster. And it is purposely limited in scope to hone in on encouraging neighborhood businesses to help neighbors. AB 877 is limited to establishments with under 50 rooms in a county where there is declared state of emergency by the Governor of California or the President.

The credit is a 50 percent valuation of the room used to house displaced persons, with a cap of 2,000 dollars per room per state of emergency. In recent years, our state has worked with hotels and small businesses to mobilize during states of emergency, including with projects such as Project Roomkey during the pandemic. So in that vein, it makes sense that we implement the Good Neighbor Tax Credit now.

And finally, by giving a tax credit to our local businesses during these disasters, we can help our communities with this economic recovery. So with that, I'd like to turn it over to my witness, Emellia Zamani from CalTravel, to say a little bit more in support of AB 877.

Thank you, Assembly Member Addis. Thank you, Chair and Members. As the Assembly Member said, I'm Emellia Zamani with the California Travel Association, otherwise known as CalTravel. We are the trade advocacy organization for the state's travel and tourism industry. Our members include convention and visitor bureaus, destinations, hotels, resorts, and other organizations throughout the state for whom travel and tourism advocacy is important.

I don't have to tell you that California is a wild and beautiful place. And with that, we attract about 279,000,000 dollars--not dollars--279,000,000 visitors anticipated this year alone. But given that it's a wild place, we all are very familiar with the natural disasters that come with it.

Floods, wildfires, earthquakes, record snowfalls that cause billions in damage, displace thousands of people, and negatively affect small businesses. While it's too soon to measure the impact of the serious, severe storms on California's tourism economy, we have data from the 2017 closure of Highway 1 in the Big Sur region. Businesses in that region lost 544,000,000 dollars in travel spending. The state lost 27 million dollars in tax revenue. Monterey and San Luis Obispo counties lost 18 million dollars and nine million dollars, respectively, in local tax revenue.

And 83 percent of businesses in the Big Sur region alone reported the closure had a strong negative impact to their overall operations. But aside from the economic implications natural disasters have on California, they have a very real human cost that the Assembly Member went into. We've seen thousands of people displaced this winter alone, and some individuals turn to our hotels for temporary shelter. Many of these establishments will waive room fees.

They've always done the right thing, from closing during the pandemic to hosting the homeless and our first responders and other critical health care personnel. But waiving these fees for some of these smaller establishments can really create a difficult financial situation in a time that's already very contentious.

So creating a tax credit to offset these costs will be very critical for supporting small businesses. AB 877 is a tool that enables California to protect vulnerable residents and local economies confronting natural disasters caused by climate change, and we hope that you'll consider supporting this bill when it's time to take a vote. Thank you.

Thank you. Do we have any other witnesses in support?

Brady again with the California Chamber of Commerce, here in support.

Any witnesses in opposition?

Brandon Epp with Corbin and Kaiser, representing California Tax Reform Association in opposition.

All right. Thank you. Do we have questions or comments from the Committee? There's no Assembly Member Quirk here. Very sad. He always had a question or a comment. So I certainly understand the good intentions of this bill, and we've worked to get it to a spot, but do you think that--how many rooms do you think this will actually apply to?

If you have a natural disaster, do you think that there will be many rooms at these small hotels or motels or BnBs that would be sitting empty? Will this really encourage folks to use them?

It's hard to put a number on it right now, given the variety of disasters that we've seen across the state. Some disasters are happening where there are plenty of motels and hotels available. Some disasters are happening where there's not as many.

But what I would say is that we've heard a true need from people on the ground during these last disasters in January, the floods and storms in January that hit the Central Coast as well as those in March, for people to get into immediate shelter, that shelter that lasts one, two, or three days. And so I think there will be enough rooms, but I don't think it's going to be every room across the state where the credit becomes unmanageable, if that makes sense.

All right, thank you. Okay, so, Assembly Member, would you like to close?

Just that I thank the Committee for its consideration. I want to thank staff again, especially Committee staff, for working with us and respectfully request your support for 877.

All right. And then, without objection, this bill will be referred to our suspense file. Thank you very much. And then, I wanted to announce Item Three: AB 362 is off the calendar.

And next we're going to move to file item two, AB 265 by Assemblymember Boerner Horvath. Good afternoon.

Good afternoon. There you are. Good afternoon, Madam Chair. Members sponsored by the California State Controller, AB 265 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, are blind or have a disability to defer current year property taxes on their principal residents if they meet certain criteria, including at least 40% equity in the home and an annual household. Income of $49,017 or less. Among other requirements 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 programs. 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 265 would require a transfer from the General Fund to the Program on June 30 to bring the Program's Fund balance to $15 million in years, that the balance is less than $15 million.

In years, when 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 265 helps senior and disabled individuals, most of them on a fixed income, stay in their homes, and I respectfully ask for an aye vote. With me here today testifying in support of the Bill is Kathleen Webb, chief operating officer from the controller's office.

Thank you very much. Madam Chair Members. It is indeed a pleasure to be here with you. My name is Kathleen Webb again, and I'm with the Office of the State Controller, Malia Cohen. The Controller is pleased to sponsor AB 265, which will provide a permanent funding source as postponement program. Say that a couple of times fast, or we lovingly refer to as PTP. The Program, as was stated, is really designed to help eligible elderly and disabled individuals defer payment of their property taxes.

The other thing I think is important to indicate and reemphasize is that if no alternative funding is established, the Program will be unable to approve new postponements, potentially causing more harm to those vulnerable individuals that we are trying to help out right now. Securing a reliable funding is imperative due to the cyclical nature of the PTP Program. Historically, when there has been economic downturns, demand for program has increased, as we are also seeing today.

Given the uncertain economic forecast we're all facing, this will likely continue to be the case. Finally, this Bill is a reintroduction thank you. Of last year's AB 1707. In the Governor's veto message, he noted his support of the program. Accordingly, he directed the Department of Finance to identify any fiscal stability concerns and propose appropriate solutions. I am happy to report to all of you that those conversations are ongoing and we will be sure to update you on the solutions as they are identified.

Again, I want to thank you for the opportunity to testify here with all of you. And with me is my colleague, Lindsey Ross, who can also explain any details of the program for you.

Good afternoon, Madam Chair. Members. Lindsey Ross, State Controller's office. I echo Kathleen's comments and respectfully request your aye vote.

All right, thank you. Any other speakers in support?

Vanessa Chavez with the California Association of Realtors in support. Thank you.

Thank you. Do we have any witnesses in opposition? All right, questions from the Committee. Assembly Member Grayson.

Thank you, Madam Chair, and very supportive of the program. So thank you for bringing it forward. Again, I was wondering, is there any projection as to because it would start June 30, 2024. And then every year after the way it reads, is there a projection of what the cost would be based on its cyclic nature and its past? What would it cost in the next five or ten years? Is it something that's going to be added every single year? Money will be pulled out of a General Fund and put into this special Fund.

Right. So, just a little background. When the program was reinstated in 2014, the Fund is capped at 15 million. So anything in excess of 15 million has to be transferred to the General Fund. Between 17-18 and 19-20, we've transferred already almost $7.9 million to the Fund. So this Bill is really keeping the Fund at 15 million. In years where the Fund balance might be over, we will transfer to the General Fund. In years where it's under, the General Fund would backfill to 15 million.

As far as the projection, if it did start in 2024, right now, our Fund balance is a little right around 10 million. We expect that it's going to go down in the next few years. So the sooner this starts, the less potential that there has to be a backfill. So we're expecting maybe in the neighborhood of somewhere around $5 million for the next couple of years.

So it's an ebb and flow. It goes with the market.

Correct.

So it's good for the public to know that this is not just a drain on the General Fund. This is a give and take. In prosperous years, the Fund gives to the General Fund, and in years of need, you take back.

Correct.

Very good. Thank you.

All right, no more questions. Assembly Member, would you like to close? All right, then. Without objection, this Bill will be referred to our suspense file. Thank you. All right, Assemblymember Baines, you are up. The rest of our bills are committee Member bills, so everybody be ready. So this is AB 1203. You may begin.

All right, thank you. Chair Members, I am pleased to present AB 1203.

First, I would like to thank the Committee for working so diligently with my staff. Per Committee recommendations, I'm drafting language to delay implementation to April 1st, 2024. AB 1203 bill seeks to establish a tax parity between breastfeeding and formula feeding. This bill creates a sales tax exemption for breast pumps, pads, and storage supplies. As a family physician, I am acutely aware of the benefits of breast milk.

We know that breastfed babies have a lower risk of wide spectrum of illnesses, ranging from ear infections, pneumonia, to sudden infant death syndrome and leukemia. Research has even found that the health benefits of breastfeeding can be lifelong for both mother and child. While breast milk is widely recognized as the best way to provide nutrients to infants, breastfeeding can be difficult and time-consuming for new parents, especially for parents who return to the workforce.

Breast pumps are an essential tool to ease this difficult transition by allowing parents to collect and store vital nutrients for future use. However, these pumps and related supplies can be expensive, especially for low income Californians. Often, the women who need higher efficiency and costlier pumps are the same working class mothers who have fewer breaks, longer commutes, and shorter maternity leaves. Compounding this financial burden is the imposition of California sales tax.

Meanwhile, infant formula is exempt from this taxation. Given the overwhelming benefits of breastfeeding and the financial burden of current tax on new parents, AB 1203 asks that breastfeeding be taxed at the same rate as formula feeding. AB 1203 enjoys support from a growing coalition, including the American Academy of Pediatrics, Maternal and Child Health Access, the California Catholic Conference, and the California Breastfeeding Coalition and the California Nurses Association. Here with me today to testify in support is Renee Zuniga, a lactation consultant.

Thank you very much. Good afternoon. My name is Renee Zuniga and I'm a woman's health nurse practitioner with Kaiser Permanente and also a lactation consultant with Simply Fed. Simply Fed provides virtual breastfeeding and baby feeding support to new families covered by health plans across the United States. In my position, I work with nursing women to help support them on their baby feeding and breastfeeding journey, including helping them with latching, positioning their supply, and working with breast pumps.

As a provider at Simply Fed, we want healthy babies and we want healthy moms, and a healthy mom is one that has the freedom to choose how to feed her baby in the way that she wants that protects her physical and mental health tied to services and tools like breast pumps. As a nurse practitioner, I see over 100 postpartum women each year, and 85 percent of those use breast pump and supplies to aid their journey.

Currently in California, people who pump are required to pay sales taxes on purchased breast pump equipment while infant formula is exempt from taxation. Breast pumps are necessities for nursing mothers, especially for working moms that have returned to the workforce and have chosen to breastfeed beyond the initial maternity leave. Those who have little or no maternity leave are for a variety of medical reasons, such as when infants are premature or unable to latch.

Breast pumps are absolutely vital because women are nearly half the workforce, according to the Bureau of Labor Statistics. Some studies show that one in four women are returning back to work. It is imperative that they have access to breast pumps to help support them in this transition to allow them to both feed their baby and also successfully navigate their new normal to help retain them in their job. Breastfeeding is one of the major contributors to women leaving the workforce.

If California wants to have a thriving economy, then better supporting half our population by retaining women in the workforce after becoming a parent is vital. Women leaving the workforce after having a baby creates financial and leadership repercussions. The good news is that we know from the data that organizations with lactation support programs have a retention rate for employees after maternity leave of 94 percent, compared to national average of just 57 percent.

This legislation can help support that transition and from moms hitting the maternal wall in their work environment after having a baby. Additionally, breast pumping is deeply tied to a woman's physical and mental health and they deserve to have accessible and affordable access to tools to safely navigate their return to work or being away from their baby. We also know that the data shows breast milk has several health benefits. It can help protect babies against some short and long-term illnesses and diseases.

Breastfed babies have a lower risk of asthma, obesity, type one diabetes, and sudden infant death syndrome. Research also shows that breastfed babies are also less likely to have ear infections and stomach bugs. Keeping babies healthy saves families and our health system money. I'm urging you to remove the unnecessary barriers for a family who want to provide breast milk for their infant children. As a professional working with nursing women from many social economic levels, this legislation will help California families. Thank you.

Thank you. Do we have any other witnesses in support?

Good afternoon. Yarelie Magallon with Political Solutions, here today on behalf of Children's Specialty Care Coalition in support. Thank you.

Alexis Rodriguez with the California Medical Association in support. Thank you.

Thank you. Any witnesses in opposition? You got a tough job.

Brandon Epp with the California Tax Reform Association, respectfully in opposition.

All right. Do we have questions or comments from the Committee? All right. So just one thing. The analysis points out that breast pumps can already be--at times are covered through WIC or the ACA, so do you think that distinguishes this tax exemption from diapers and menstrual products potentially?

Potentially. However, we're not really sure. Medi-Cal has a reimbursement policy that advocates argue that we'll provide it. However, Medi-Cal's policy is to provide one pump every three years, which is insufficient for most pumping mothers.

All right. Well, Assembly Member, would you like to close?

In closing, California families should have all available options for feeding their infants. I ask for your support in creating parity between formula feeding and breastfeeding. Thank you, and I respectfully ask for your aye vote.

All right. Thank you very much, and without objection, this bill will be referred to our suspense file. And we don't have Mr. Patterson here, so Mr. Wallis, Co-Chair Wallis. Oh, yeah, you can be Vice Chair right now. Yeah, you are Vice Chair right now. Just in case something happens. All right.

Well, good afternoon, madam. Chair committee Members. I have before you today Assembly Bill 629. Last December, Congress passed Secure Act 20. One of the provisions in that act allows savers to roll money from a qualified tuition program referred to as 529 plans, to Roth Individual Retirement Accounts, free of income tax or tax penalties.

Assemblymember Wallis will be presenting AB 629.

AB 629 would conform California law to the federal law to ensure rollover funds from a 529 account are not taxed as income or subject to the withdrawal penalty of 10%. This change in federal and state law is to encourage additional savings for college. This ability to transfer to a Roth IRA should alleviate any concerns that 529 funds won't be used if the beneficiary doesn't need it for their education. It was our intent to include all 529 plans, not just California's scholarship program.

And so, while the Bill is on Suspense, we will clarify that. We'll also amend the Bill to comply with this committee's rules, including adding a sunset.

All right, thank you. Witnesses in support, witnesses in opposition. And that was actually the question. So you are willing to make sure it includes all 529 plans?

Yes.

And we always, like, conformity, or I should say usually, so

happy to do it.

Good. All right. Any questions from the committee? No. So, would you like to close?

Just thank you to the committee staff for your analysis, looking forward to continuing our work, and respectfully request an aye vote.

All right. And without objection, this Bill will be referred to our Suspense file.

Thank you.

All right. What am I supposed to say? Thank you. All right, so file item eight, AB 339. Assembly Member Irwin, please begin.

Thank you very much, Mr. Vice Chair. I'm pleased to present AB 339 today. In 2015, I authored AB 449, which established CalABLE in California, and since then have authored several additional bills that further improve the Administration of this program.

The CalABLE program provides tax advantaged accounts to those with disability related expenses, allows these people to save without losing access to critical safety net benefits. Last year, the Federal Consolidated Appropriations Act included a change that, starting in 2026, makes the Federal Able Program available to those who develop a disability in their later years.

AB 339 will conform state law to this change by raising the age before which an individual's onset of disability or blindness occurs, and it raises the age from 26 to age 46.

Raising the age limit will enable thousands of additional Californians with disabilities, particularly those that are hurt on the job or during military service, to benefit with these accounts, I'm excited to partner with Treasurer Fiona Ma, the sponsor of AB 339, to expand CalABLE eligibility and always appreciate her continued partnership on this critical program. And with me to testify again in support of this Bill is Dante Allen, Executive Director of CalABLE.

Good afternoon again. Dante Allen, Executive Director for CalABLE. I've served in this role for five years, since 2018. And in those five years, I've watched CalABLE grow from a concept to where it is today with more than 9000 californians with disabilities saving and investing an estimated $90 million. These savings represent life changing opportunities for account holders. More than 50% of CalABLE account owners report a household income of $25,000 or less.

Many are using their CalABLE accounts to save money in their own names for the very first time. Many are using CalABLE as their very first bank account. Nearly all are using CalABLE as their very first entry into investing and potentially growing their money. These first aren't merely coincidences. They are the result of the empowerment effect that CalABLE has had upon people with disabilities.

People who for decades have been told never to save money in their own names or accumulate less than $2,000 in savings, or risk being kicked off benefit programs like SSI, Federal Housing Assistance, or Medicaid, for which they depend on for their lives. Such limitations have left thousands teetering on the brink of poverty or worse still, having lost their footing altogether and sliding into an impoverished state with little help of ever recovering, Little hope of ever recovering.

One CalABLE account owner described her account as being the difference between planning for a rainy day or just being stuck out in the rain without an umbrella. Others are telling us they are living on their own for the first time. They can travel or can afford a greater level of independence because of CalABLE. And CalABLE's impact doesn't just extend to those who are receiving government benefits.

A recent study conducted by the National Disability Institute revealed that a family that includes a person with a disability requires up to 28% more income to achieve the same standard of living as a family without someone with a disability. That's an additional $17,690 per year for a household at the median income. CalABLE is helping to level the playing field for many of those families by giving them a tax advantage incentive to save and invest.

Parents of those with severe developmental or intellectual disabilities can now set aside money for their children's potential lifelong needs in preparation for the likelihood their child will outlive them. Working with individuals with disabilities can save and grow their money and access it at any time for qualified expenses. Our CalABLE account holders say that they have been able to pay their closing costs for their first home, purchase larger vehicles that can accommodate a wheelchair, and they can travel and see more of the country.

The Federal Able Act, though, was established with a critical flaw at the 11th hour to assure the bill's passage in Congress, they made a compromise that limited the age of eligibility to those whose disability started before 26. That compromise was necessary to rebalance an inflated estimate that envisioned a significantly higher uptake in able and an estimation that nearly everyone would contribute the maximum allowable by law. And while the need to compromise was understandable, the rationale between the age cutoff was not so clear.

The additional costs of living with a disability don't change just because of the age that your disability began. To the estimated 6 million people with a disability excluded from able participation, including a million veterans who became disabled in the service of this nation, the age cutoff seemed arbitrary.

Neither of the assumptions that fueled the compromise came to pass, and the limited eligibility has left out many who helped advocate for the Federal Acts passage and serve to confuse others who may currently be eligible but believe they are otherwise ineligible. Thankfully, after nearly three years of effort this past December, Congress was able to repair this flaw at the federal level with the passage of the Able Age Adjustment Action Act.

Beginning in January of 2026, an individual with a disability that began before age 46 will be eligible to open an able account in 48 of the 49 states and the District of Columbia that offer able programs. California must follow suit and join other able programs in conforming with federal law. In passing AB 339, we will be including an estimated 600,000 Californians, including 100,000 disabled veterans who would otherwise be left out of the life changing benefits that CalABLE empowers.

We will also be reaching the uncounted numbers who may already be eligible, but inaccurately believe because they are older than age 26, they cannot participate in CalABLE. Moreover, conforming to federal law will position CalABLE competitively with other able programs across the nation that accept out of state enrollment. Unless California conforms to federal law, those Californians who become disabled between ages 26 and 46 will have no choice but to look to other able programs in their quest to achieve a better life experience.

Losing those potential able account owners would further prolong CalABLE's ability to achieve self sustainability and potentially threaten our ability to continue to serve those who have already entrusted us with more than $90 million in assets under management. For these reasons, I ask for your thoughtful consideration in moving AB 339 forward. Thank you again for your time and service to Californians with disabilities. Thank you, Assembly Member Irwin, for your continued support as well.

Thank you, sir. Are there any witnesses in the room wishing to speak in support?Seeing and hearing none, are there any witnesses in the room wishing to speak in opposition? Seeing and hearing none. Questions or comments from the committee? Assembly Member Irwin, would you like to close?

Yeah, I just want to say that now that we have the data for the pastures of CalABLE, raising the age limit to 46 will cost the state $700,000 annually. And that really is a small price to pay for allowing folks with disabilities to work and not lose benefits. So I'm very proud to author this bill and just respectfully ask for your support when the time comes.

Thank you. Without objection, this Bill will be referred to our Suspense File.

Thank you.

Number five, come on up. Mr. Patterson, you are our last customer today.

Well, good.

AB 1093 Whenever you are ready.

Well, first of all, thank you, Madam Chair and Members. AB 1093 addresses the issue of inaccurate ownership records for mobile homes in California. The current process for selling mobile homes is often informal for selling mobile homes. It does not require a tax clearance certificate, leading to a high volume of tax delinquency and inaccurate title information. This Bill would require the seller of a mobile home to obtain a tax clearance certificate for estimated taxes that will become due before the sale.

This will ensure that the new owner's information is known to the county assessor and the county tax collector, as well as the Housing and Community Development Department. Obtaining a tax clearance certificate will trigger a change in ownership at the county level, which improves the process for selling mobile homes by ensuring that the new owner is responsible for the taxes that become due. This change will also help maintain accurate tax rolls and prevent tax bills from being mailed to the previous owner.

This reduces the risk of delinquent taxes, defaulted bills, resulting in less confusion and frustration for both the county and the new owner of the mobile home. Here to testify in support is Karen Lang on behalf of the county treasurers and tax collectors.

Good afternoon, Madam Chair and Members. First of all, thank you to Mr. Patterson for carrying this Bill. It came out of his county, Madera County, where they've been trying to correct and update their roles to make sure that they're sending bills to the right folks. Appreciate the fact that carrying legislation for tax collectors is not always the most fun.

So thank you very much and also wanted to commend your staff because he did a great job of getting into the issues of the challenges with how casual some of the sales can be. Normally, these are unsecured properties, so they get a Bill generated about mid July, they're due in August, and then the tax collector can sometimes send years worth of bills to the wrong owner, and the new owner would just toss the piece of mail away because it's not addressed to them.

And this is one more tool that we can give to local governments to make sure that the correct owner is receiving the Bill in their name and also that the previous owner is not being tracked down by the tax collector for years for unpaid taxes. So it hopefully will benefit buyers, sellers, and the State Department of Housing and Community Development and getting accurate tax rolls. And we would ask for your Aye vote when you take up the suspense file later this year.

All right. Do we have any other witnesses in support?

Good afternoon, Madam Chair. Chris Wysocki with the Western Manufactured Housing Communities Association. And we choose to align ourselves with Ms.. Lang and Mr. Patterson. This is a good Bill. It'll simplify things, and we encourage an Aye vote. Thank you.

All right. Any witnesses in opposition? Any questions from the committee? I definitely learned something new reading about this Bill. I had no idea that these were often just person to person transactions, but I guess it makes sense if you don't need a mortgage. So I have a question. Can you describe how this Bill will promote compliance with the manufactured home property tax law?

I can give it a try. Not a lawyer. Lobbyists. Only need to register. I don't even need a high school diploma to do this job, but I will attempt to explain it to you. There are steps that homeowners go through when they sell. And that information is made available, I think generally through your park owner, there are rules that are posted.

I would presume that this would be one of the additions that they would notify their tenants to and so that when they go to sell their home, they would be advised that they should go get this tax clearance certificate for estimated taxes, and that would help them in escaping future tax bills that were mailed to them. So we would rely on our partners that are the park owners, and Madera County in particular is working very closely with them now.

So thank you for the question. The big problem here is that many times when somebody sells their home, it's often 2nd, 3rd, or fourth generation before a tax Bill actually becomes into play. Because so many of these bills are private transactions, they often don't hit the tax rules. So a fourth generation person that might buy that home may have no idea that they actually don't have a tax clearance. This is a Bill that will simply seek to codify and bring the tax rules into play.

So I don't know if Ms. Lang would like to elaborate, but we're just trying to make it simple. We want transactions to be recorded. We want transactions to be certified, and we want to make sure that the current owner is aware of the tax liability that they're responsible for.

Well, I appreciate that. Thank you very much. Assemblymember, would you like to close?

Sure, when the time comes. My understanding is that this is on consent because there's a likelihood that the state will get a bump up in revenue. Right? Am I understanding that correctly?

You mean suspense?

What did I say?

Consent.

No, consent. I was thinking ahead.

It's whether it's a bump up or a bump down.

Yes, I understand that.

Yeah, but both ways, it'll go to suspense.

Yes, I understand that.

I hope it's a bump up and that's what you're saying it's gonna be.

Well, that's what we understand. Make it simpler, easier, and we're not going to lose people in the tax for the tax codes. So, all things considered, I think it's a good Bill and probably the last one that I will propose that will bump up taxes. I don't know about that. I'm being facetious. Been a long day. When it comes time, I appreciate the vote.

I appreciate that you've had two bills that have fixed, like, these really odd problems in your district, and so you're definitely a problem solver for your people. I appreciate that. So, without objection, this Bill will be referred to our suspense file.

Understood. Thank you.

All right. And with that yes. Our meeting is adjourned. Do you guys know if the Judiciary is going on still? Yeah, it's in Senate chambers, and I had no idea. Okay, maybe not.

Oh, my God. I want your. Ms. Pacheco, I want your.

Oh, my lanyard?

Yeah.

And it's really cool because you can do this.

I got it at a little store in Downey. I'll find some more. It's cute. Look.

Where did you find that?

It's adorable.

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I had a Hello Kitty mask.

You had a Hello Kitty mask? Me too.

And I still have one of the first ornaments I got.