Assembly Floor

The Assembly is now in session. Assembly Member Pellerin notices the absence of a quorum. Sergeant at Arms will prepare the chamber, bring in the absent Members. The Clerk will call the roll.

[Roll Call]

Members, a quorum is present. We ask our guests in the gallery and in the rear of the chamber to please stand for today's prayer and pledge. Today's prayer will be offered by Imam Yasir Khan. Imam Yasir.

Bismillahir Rahmanirrahim. In the name of God, the most compassionate, the most merciful, respected Members of the California State Assembly, good afternoon and Assalamu Alaikum. May the peace, blessings, and mercy of the Almighty be with you. Please join me in a brief prayer invocation as we honor and welcome the Blessed month of Ramadan.

Lord, we welcome the month of Ramadan with hearts full of gratitude and humility. We seek your forgiveness for our shortcomings, and we pray for your guidance and blessings throughout this month.

Lord, as you have stated, o believers, fasting is prescribed for you as it was for those before you, so perhaps you will become God conscious. We ask you, Lord, that throughout the month of fasting to enhance our consciousness and to grant us awareness of you, of ourselves, and of the most urgent needs of our communities. Lord, grant us strength and patience. Help us to purify our souls and increase our faith through acts of charity, kindness, and compassion towards others.

Allow the hunger and thirst that we feel while fasting to remind us of the deprivation of those less fortunate than us and to inspire us towards humility and action. Lord, we ask that you bestow upon the people of this blessed state and nation serenity, wisdom, and spiritual strength during these challenging times. Amen Amen. Thank you.

We ask that you remain standing. As we recite the nation's pledge. Please join Assembly Member Muratsuchi as he leads us in the nation's pledge. Please join me in the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God, indivisible, with liberty and justice for all. You may be seated. Reading of the previous day's journal.

Assembly Chamber of Sacramento Tuesday, March 14, 2023.

News Mr. Flora seconds that the reading. Of the previous day's journal will be dispensed with presentations and petitions there are none. Introductions and references of bills will be deferred. Reports of committees will be deemed read and amendments deemed adopted. Messages from the Governor there are none. Messages from the Senate there are none. And Majority Leader Reyes, you are recognized for your procedural motions.

Thank you, Mr. Speaker. I request unanimous consent to suspend Assembly Rule 45.5 to allow assemblymember Calderon to speak on an adjournment in memory today.

Without objection, such shall be the order.

I request unanimous consent to suspend Assembly Rule 118 A to allow Assembly Members Assaili and Calderon to have guests and photographers on the floor today and for Assembly Members Berner, Horvath, Muratsuchi and Weber to have guests seated at their desk again.

Without objection, such shall be the order.

I request unanimous consent to order SCR 6, Umberg and SCR 41, Rubio to the third reading file.

Without objection, such shall be the order.

Pursuant to Assembly Rule 96, I request unanimous consent to re refer the following bills to Committee AB 1027 Petrie Norris from the Privacy and Consumer Protection Committee to the Judiciary Committee, and then back to the Privacy and Consumer Protection Committee.

AB 1336 Low from the Privacy and consumer Protection Committee to the Banking and Finance Committee, and then back to the Privacy and Consumer Protection Committee and AB 1492, Alvarez from the Revenue and Taxation Committee to the Housing and Community Development Committee and then back to the Revenue and Taxation Committee.

Without objection, such shall be the order. The absences for the day will be printed in the journal for illness. Assembly Member Ortega. Members, we're on to business on the daily file. Second reading Clerk will read Assembly bills.

[Second Reading]

All bills are deemed read. All amendments will be deemed adopted. And Assemblywoman Calderon, you are recognized for your guest introductions at the rear of the chamber.

Thank you, Mr. Speaker, Members, it is an honor to introduce a very special guest this afternoon. Joining us in the rear of the chamber is Los Angeles County Sheriff Robert Luna. Sheriff Luna was elected last year to serve as the 34th sheriff of Los Angeles County. Prior to this role, he served as the Long Beach chief of police and has enjoyed a career in law enforcement spanning three decades. Please join me in welcoming Sheriff Robert Luna to the California State Capitol.

And Assembly Member Muratsuchi, you are recognized for your guest introduction.

Welcome to the California welcome back to the California Assembly. All right, Members, we are on Assembly third reading, and we are going to begin with file item 24. This is ACR 22. Clerk will read.

The story of Bilal is one of hope, faith, and equality. It reminds us of the core values rooted in all humanity and that served as the foundation for our own nation, that all men and women are created equal in the eyes of God. The holy month of Ramadan is the 9th month in the Islamic calendar, and it marks a time of spiritual renewal, reflection, and community. There are almost 2 billion Muslims in the world, and every year we observe Ramadan by fasting from sunrise to sunset.

Assembly Concurrent Resolution 22 by Assembly Member Eassyli relative to Ramadan.

And Assembly Member Essayli, you may open on the resolution.

Thank you, Mr. Speaker. I am honored to rise today as the first Muslim ever elected to the State Assembly to present ACR 22, commemorating the holy month of Ramadan. I'm also pleased to welcome my guest chaplain to the assembly chamber, who provided our opening prayer, Sayyid Mehdi Kazwini. Where is he? There in the back of the chamber.

Kazwini is a native of Southern California who leads the congregation at the Islamic Education center of Orange County, where my family and I have been Members for many years. Imam Kazwini is not only a pillar in our Muslim community, but he also contributes extensively to interfaith law enforcement and public policy spaces as well. Please help me in welcoming Kazwini.

Before I speak on today's resolution, I wanted to take a few minutes, a few moments to comment on the personal significance of my election to this body and as the first Muslim assembly member, my parents immigrated to the United States from Lebanon in the mid 80 s to flee a civil war. My sisters and I were born and raised here in California, and we grew up with humility and with great gratitude for the freedoms and blessings offered by the United States.

My parents are also devout Muslims, and they instilled in us at an early age the values that would guide our moral compass throughout life. One of my favorite gifts my parents gave me was my name. My given name is Bill, which is not a very common name in the US when I started school. At first I wasn't the biggest fan of my name. It was unusual and difficult to pronounce. But then I learned about the meaning of my name and how special it truly was.

Bill is the name of one of the great heroes in Islam. He was born an African slave in 1580 AD. When Bill was in his 30s, he heard about the message of Prophet Muhammad, and he converted to Islam. His slave masters were not pleased with his conversion, and he was mercifully beaten and tortured for his conversion. Despite the torture, his faith never wavered. News of Bill's torture reached the prophet who sent a wealthy trader to negotiate for Bill's emancipation.

Once Bill was freed, he became one of the most loyal companions to the prophet. When the prophet was deciding how Muslims should be called to prayer, he knew it had to be something special. In Judaism, the horn is used as the instrument of choice. In Christianity, it's the church bell. But in Islam, the instrument selected was the human voice, and Bill was the first appointed muzin, or prayer caller. In Islam, Bilal's voice echoed and mesmerized people to gather and pray to God.

This is a dry fast, which means no food or water or any drink during the day. Growing up, I was often the only Muslim in my classes, and explaining the fast to my peers was always a challenge. Why would anyone give up food and water? Well, there is a deep spiritual and physical benefit to fasting. On the spiritual side. The purpose is to draw you nearer and closer to God and to become more consciously aware of God's presence.

When you go without food and water, you quickly realize how dependent you are on these basic necessities we often take for granted. Fasting reminds us how blessed we are to rarely go a day without being hungry. 30 seconds.

And how fragile, independent we are in God's blessings. This is not the case for millions of people around the world. When I grew up, fasting was an unknown and foreign concept. Now we all call it intermittent fasting, and it's a growing trend in the health industry. There is a verse in the Quran that alludes to the health benefits of fasting and says, if we only knew how good it was for us, we would do it every day.

And now science is finally catching up and proving that to be true. If you're curious what a day is like without food and water, I invite you to join me for a fast and then to break the fast at an iftar dinner at sunset. If you're otherwise healthy, I promise you it will not kill you. And you might be surprised at the strength of your own willpower.

Again, Mr. Speaker, I thank you for allowing me the opportunity to present this, especially being the first Muslim in this body. And I am proud and honored to bring the representation that I think this body has been missing. I respectfully ask all of my colleagues for an aye vote on ACR 22, and I request that the first role be open for coauthors. Thank you.

Thank you, Mr. Essayli and Madam Majority leader, you're recognized.

Thank you, Mr. Speaker. Acr 22 recognizes the importance of a month that holds value to over 1 million Californians and almost one fourth of the world's population. By highlighting Ramadan on the state Assembly floor, we are also highlighting the value and contributions of Muslim Americans throughout our state. Five days ago was the first day of Ramadan, with the Islamic community beginning their 30 day fasting from sun up to sundown.

For Muslims, this is a time for reflection and spiritual discipline, embodying the devotion to faith, family and community service that we all hold dear. A key component of Ramadan is to experience hunger, to better empathize with those facing hardships due to poverty. It is not just about this personal act of fasting, as Ramadan also requires service and charity to those facing challenges. Through that spirit of service, many Muslim organizations throughout the state provide food distribution and other resources to those in need.

These efforts are vital in our state. As one in five Californians currently struggle with food insecurity. The Muslim American community continues to be a pillar of California, making Ramadan part of the fabric of our state's diversity and history. Thank you to the Member from Corona for bringing this forward. Members, I ask for your support of ACR 22 so that we can collectively wish our Muslim brothers and sisters a blessed and joyous Ramadan.

Thank you, Ms. Reyes and Assembly Member Berman. You're recognized.

Thank you, Mr. Speaker and colleagues. On behalf of the California Legislative Jewish Caucus, I rise in support of ACR 22 in commemoration of the month of Ramadan. Ramadan is a holy month for Muslims around the world. This holiday is about gratitude, compassion, and respect for all communities and people from all walks of life. The iftar breaking of the fast each night focuses on building community and spending time with family.

And actually, one of the coolest experiences I've had traveling was when I was in Istanbul 20 years ago, and it happened to be during the month of Ramadan and going to Sultanamet park, and you had the Eye of Sophia on one side and the blue mosque on the other side, and just thousands of families came out to the park at sundown to break the fast and how people were so happy to see an outsider there and to talk to me and explain to me what Ramadan meant, what breakfast meant.

To invite me to be a part of that experience was just a really meaningful experience for me. Ramadan teaches important spiritual and personal values that we should all strive to live by. Similar to the Jewish community, the Muslim community has faced many hardships in the United States, and even in California. Islamophobia and hate crimes against Muslims have surged in recent years. And just as the Jewish community has faced increasing anti semitism, so, too the Muslim community has seen anti Islamic incidents surge.

Here in California, our Jewish and Muslim communities have and will continue to support each other when these incidents arise. Together, we must fight these stereotypes and discrimination. We must prevent all hate against the Muslim community and hope that they have a safe and meaningful holiday. We must learn to embrace other cultures and be tolerant of different religions. In that spirit, and on behalf of the Jewish caucus, I wish all of California Ramadan Mubarak, a blessed Ramadan. And I respectfully ask for an aye vote on ACR 22.

Thank you, Mr. Berman. And seeing no other Members wishing to discuss the resolution, Mr. Essayli, did you have anything further to close?

I just respectfully asked for an I vote. Thank you.

Thank you, Mr. Essayli. Clerk will open the roll Member. This is for co authors. Mr. Essayli's asked that the first roll be open for co authors. All those wish to be a co author. Please vote now. Clerk will close the role. There are 77 co authors, including Mr. Essayli Members. Without objection, we will take a voice vote on the resolution. All those in favor say aye. All those opposed say nay. The ayes have it. Resolution is adopted.

Members will be moving forward to file item number 40 by Mr. Gabriel. This is HR 25. The clerk will read.

House Resolution 25 by Assembly Member Gabriel relative to a resolution condemning the human rights violations against the Uyghur people in China, Xinjiang Uyghur Autonomous Region, and supporting the work of the Uyghur Forced Labor Prevention act.

And Assembly Member Gabriel, you may open.

Thank you, Mr. Speaker. I rise today to present HR 25 to draw attention to the horrific human rights abuses being committed against the Uyghur people in China, and to support the implementation of the Uyghur Forced Labor Prevention act. As we begin both the holy month of Ramadan and Genocide Awareness Month, it is essential that we shine a spotlight on the genocide against the Uyghurs, a predominantly Muslim ethnic minority in China. According to the United States Holocaust Memorial Museum, the Chinese government's campaign against the Uyghur people is systematic and multifaceted and includes identity based persecution, mass detention, surveillance, forced sterilizations, forced labor, and forced assimilation. Uyghurs are barred from freely practicing their religions, speaking their language, and expressing other fundamental elements of their identity. Restrictions apply to many aspects of life, including dress, language, diet, and education. The Chinese government closely monitors Uyghur religious institutions. Even ordinary acts such as praying or going to a mosque may be a basis for arrest or detention. Even more concerning, the Chinese government has created a system of arbitrary mass detention and forced disappearance. According to well sourced human rights reports, between one and 2 million Uyghurs are currently imprisoned in detention centers and indoctrination camps. I will say that again. Between one and 2 million people are currently imprisoned in detention centers and indoctrination camps where, according to witnesses, they are subject to mass surveillance, torture, sexual assault, and forced sterilization. Children are often separated from their parents. And family members, particularly those living abroad, are often unable to get information about their missing loved ones or even confirm that they have been detained, causing further trauma and fear within the community. The Chinese government has also instituted a widespread and brutal campaign of state sponsored forced labor involving the Uyghur people. With a network of factories being built within and near detention camps where Uyghurs are forced to work, often for low or no wages. The scale of this modern day slavery is staggering. One in five cotton garments in the global market are tainted by forced labor from the Uyghur region. In the face of such brutal oppression, we cannot remain silent. Thankfully, at a time of incredible partisanship in Washington, there has been bipartisan consensus about the need to confront the Chinese government and speak out forcefully against the mistreatment of the Uyghurs. Presidential administrations and secretaries of state of both parties have joined the international community in unequivocally calling the situation in China what it is, a genocide. And in December 2020, President Biden signed into law the bipartisan Uyghur Forced Labor Prevention Act, a groundbreaking law that establishes a rebuttable presumption that any goods manufactured in the Uyghur region or produced by certain entities implicated in forced labor are not entitled to entry to the United States. This legislation was the product of tireless advocacy by a diverse coalition of human rights groups and labor unions, including the AFL CIO. Colleagues, while our ability in this body to impact foreign policy is limited, we also cannot stand idly by. HR 25 seeks to lift up and support the essential work of the Uyghur Force Labor Prevention act to use diplomatic tools and our economic power to stop the oppression of the Uyghur people and to call on clothing manufacturers to do the same. To paraphrase Congressman Mike Gallagher, we must take action so that no corporate executive, no policymaker, no investor, no University President can avoid responsibility and claim that they don't know about this genocide. Or, as one of my personal heroes, holocaust survivor and Nobel Peace Prize winner Eli Weasel, said, " We must take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented." Sometimes we must interfere. When human lives are endangered, when human dignity is in jeopardy, national borders and sensitivities become irrelevant. Wherever men and women are persecuted because of their race, religion, or political views, that place must, at that moment, become the center of the universe. Colleagues, I invite you to join with people of all faiths in backgrounds, in taking sides and in speaking out against the horrific human rights abuses against the Uyghur people, and respectfully request an aye vote on HR 25.

Thank you, Mr. Gabriel. And Assembly Member Jackson, you're recognized.

Thank you, Mr. Speaker. I rise today in support of HR 25. I want to thank the member from San Fernando Valley for introducing this important resolution and bringing up the human rights violations against the Uyghur people to this chamber. This chamber has a rich history of speaking peacefully and forcefully in order to hold some of the world's most powerful accountable for human rights violations and some of the worst crimes against humanity. This resolution continues in this tradition and affirms our moral responsibility to fight against an oppressor and speak in solidarity with those who seek freedom. Therefore, we must constantly shine our light into the darkest corners of the world and confront these evils. True leadership is having the courage to see, observe the truth, and speak out. We are each other's watchmen and women, the keepers of each other's humanity, and we must constantly declare that an injustice against one is an injustice against us all. Today, the People's Republic of China is the world's most populous nation and the world's second largest economy. China is integral to our economy here in California and the world. Indeed, China is the United States' largest trading partner, in which we exchange hundreds of billions of dollars from our tech products, the clothing that we wear, and the pharmaceutical drugs we rely on to stay alive. Although in recent years, we have learned the Xinjiang Regime produces about a fifth of all the world's cotton, it is picked by slave labor, by up to a half a million Uyghurs, and sold to the rest of the world. We also know that PRC is home to some of the world's most active internment camps, which are being systematically used to oppress, sterilize and enslave, and, yes, cleanse the Uyghur people. The good news is the world is now watching, investigating, scrutinizing, and passing laws to pressure and demand the PRC to end this atrocity of the Uyghur people. For if we fail to speak out to protect our collective humanity, we will have lost the fight for human decency and will have accepted and even become complicit in the practices of forced labor and slavery. As we know, this is how it begins. But we also know how it could end. We know this from the atrocities marking human history, that their occurrences are often gradual. I am reminded of the words of the great Martin Nimola. He says, first they came for the socialists, and I did not speak out because I was not a socialist. Then they came for the trade unionist, and I did not speak out because I was not a trade unionist. Then they came for the Jews, and I did not speak out because I was not a Jew. Then they came for me, and there was no one left to speak for me. So let us speak, be a witness, and call evil out every time we see it. For we are but a continuum of human experience and existence. If atrocities are happening in China, to the Uyghur brothers and sisters, it is happening to all of us. May we all support HR 25. I respectfully ask for an aye vote.

Thank you, Dr. Jackson and Assembly Member Lou Rivas. You're recognized.

Thank you, Mr. Speaker and members. I stand in support of HR 25 that condemns the human rights violations against the Uyghur people. The Uyghur people have a rich and vibrant culture with most practicing Islam. Currently, the Chinese government is forcing Uyghurs to renounce their faith, language and culture, going insofar as to force labor, torture and murder. This is why today I ask for your support on this resolution. I want to thank the member from the West San Fernando Valley for bringing this resolution to us. I respectfully ask for your aye vote.

Thank you, Ms. Rivas and Assembly Member Kalra, you're recognized.

Thank you, Mr. Speaker. I rise on behalf of the API legislative caucus in support of HR 25 to condemn the human rights violations being committed against the Uyghur people. Since the Uyghur forced Labor Prevention act went into effect last year, about 30 companies have been identified as enabling the widescale and historic abuse of the Uyghur people. The Uyghurs are the second largest predominantly Muslim ethnicity in China. And since 2017, several human rights groups have documented the oppressive systems of detention and surveillance forced upon them solely on the basis of their religion and ethnicity. Especially as islamophobia continues to be perpetuated throughout the world, California must join the dozens of organizations and countries calling for an end to this violence and for clothing brands to cut ties with suppliers utilizing the forced labor of the Uyghurs. As we recognize the joyous, reflective Ramadan season, let us not forget those who continue to suffer because of their faith. Thank you, Ramadan Mubarak. And on behalf of the API caucus, I respectfully ask for your aye vote.

Thank you, Mr. Kalra. And Assembly Member Essayli, you're recognized.

Thank you, Mr. Speaker. I rise on behalf of the unofficial Muslim caucus in strong support of House Resolution 25 by my colleague from Woodland Hills. For several years now, the world has witnessed the Chinese government commit horrific acts of human rights violations against the Uyghur people, who are predominantly Muslim. Over 1 million people have been wrongfully imprisoned due to their ethnicity and faith. Since 2017, over 16,000 mosques have been damaged or destroyed by the Chinese Communist Party. As a Muslim myself, this is a very personal issue that strikes home for me. It could be my sister, my mother, my grandmother that is forced into one of these labor camps for simply what they believe in, or they could be subjected to sterilization, forced abortions, and ultimately murdered by the Chinese Communist Party. Throughout the year, on this assembly floor, we will speak on and remember significant historical events, horrific acts of evil in the past which should never be forgotten. As important as it is to remember right now, it's just as important to speak and to stop these horrific acts of genocide that are occurring right now in the Muslim population in China. History is being written. The United States, along with the rest of the free world, must stand in unified condemnation to end this evil genocide before thousands more are victimized. It is at these times that we recall our moral obligations and the words best said by Dr. Martin Luther King. "Injustice anywhere is a threat to justice everywhere." Again, I rise in strong support of HR 25, and I urge an aye vote. Thank you, Mr. Speaker.

Thank you, Mr. Essayli. And seeing no other members wishing to discuss this resolution, Mr. Gabriel, you may close.

Thank you, Mr. Speaker. And I want to thank all of my colleagues who spoke so beautifully on this resolution. One of the things that I struggled with as a kid growing up in the Jewish community, I know that many folks in the Jewish community struggled with, is, why wasn't there more outrage during the holocaust? Why weren't there more people that spoke up? Where were all of the good people who recognized that something terrible was happening? Why didn't ordinary citizens and governments and leaders and people in positions of authority step up and insert themselves? And how might the world be different? How many millions of human beings might be alive today? How many of the grandchildren and great grandchildren of those people might be alive today had more people been willing to stand up and speak up? I know that we live in incredibly complicated times. There are so many things that are distracting our attention, really big and important things. But I felt with the month of Ramadan coming and with the beginning of Genocide Prevention Month, it was incumbent upon us to take a moment and stop and reflect on the fact that there are up to 2 million human beings in concentration camps in China, and that we, as complicated and as difficult as our relationship is with that country, that we have an obligation to lead with our values and to speak out when we see clear and unequivocal abuses of human rights. And so, in that spirit, I invite all of you to join with us and respectfully request an aye vote on HR 25.

Thank you. Mr. Gabriel, would you like the first roll open for co authors?

Thank you, Mr. Speaker.

Thank you. Clerk will open the roll. Members for co authors on HR 25. All those wishing to be a co author, please vote. Clerk will close the roll. There are 79 co authors, and without objection, we can take a voice vote on this resolution. All those in favor say aye. All those opposed say nay. The ayes have it. Resolution is adopted. And, Mr. Gabriel, you are recognized for your guest introductions.

Thank you very much. And with your indulgence, colleagues. Part of the reason that I wanted to introduce this resolution is I found out that a number of leading human rights activists and exceptional leaders were going to be here in the State of California. And we actually are very privileged with us today. We have with us today a number of guests in the gallery that includes two survivors of concentration camps that were able to escape and come to the United States. They recently were in Washington last week, where they testified before Congress and met with key leaders, including our former speaker, Nancy Pelosi. So I'm proud to introduce Golbahar Haiti Wahi, and Kalbanor Sadiq, who are with us. We also have two leaders from the Uyghur Human Rights Project, their Executive Director, Omar Kanat, and government relations manager, Julie Millsap. And we also have several leaders from Jewish World Watch, a deeply impactful human rights organization that was founded in my community, headquartered in my Assembly District, and that works with people of all faiths and backgrounds to fight against genocide and mass atrocities. So we have my friend, the Executive Director, Serena Oberstein, senior advisor, Samuel Chu, and board member, Jonathan Bass, an entrepreneur from Los Angeles from a family of Holocaust survivors who shut down his factory in the Uyghur region after he witnessed firsthand what was going on there. And then last but certainly not least, Golmahar, the daughter of Golbahar, who bravely fought to end her mother's internment in concentration camp and who played an essential role in securing her release. These are very brave people who are speaking truth to power in Washington, in national capitals all over the world. And please join me in welcoming them to the state capitol.

Thank you. And, Members, we will now recess the regular session for the purpose of convening the first extraordinary session. The regular session is recessed. Members, we are now in the first extraordinary session, and without objection. We will substitute the prayer pledge and other orders of business prior to moving to motions and resolutions. We are now under motions and resolutions. And Madam Majority Leader, you are recognized.

Thank you, Mr. Speaker. SB 2, Skinner has been reported to the desk. I move to suspend the rules to take up SB 2 without reference to file

Motion by Reyes and a second by Gibson and Mr. Flora. For what purpose?

Thank you, Mr. Speaker. I make a motion that we move the first extraordinary session to adjourn sine die effective immediately.

All right, Members, here's what's going on. There's a motion that's been seconded, and Mr. Flora would like a substitute motion. Do you have a second? I see a second by Mr. Mathis. Members, we are going to vote on a substitute motion here which will adjourn the session. And Mr. Flora is asking for an aye vote. Majority leader is asking for a no vote. Clerk will open the roll. All those vote who desire to vote. All those vote who desire to vote. Clerk will.

Clerk will close the roll. Ayes, 18. Nos, 59. That motion fails. We are back to Ms. Reyes's motion. Members, this is to suspend the rules and take up SB two without reference to file. I assume there's an objection to this, and you would like a roll call vote. Clerk will open the roll. Ms. Reyes is asking for an aye vote.

Mr. Flora is asking for a no vote. This is a motion just to take up the Bill and suspend the rules. Clerk will close the rule, tally the votes. Ayes, 59. noes 18. Rules are suspended. And with that, we are moving to SB 2, Skinner, the Clerk will read the Bill a second time.

Senate Bill 2.

And the Clerk will read the Bill a third time.

SB 2 by Skinner, an act relating to energy.

Mr. Fong, for what purpose?

I move to suspend the rules and invoke the California Constitution to withdraw Assembly Bill X1-2 to temporarily suspend the state's gas tax to give immediate price relief and take it up immediately without reference to file.

Right. Mr. Fong? We're not on motions and resolutions. We are on the Bill right now, SB 2. That motion is out of order. Mr. Flora, what is your point of order?

Emotions and resolutions.

The chair did not see him. We are on the Bill. According to our parliamentarian, we are on the Bill right now, which has been taken up. There'll be many points of opportunity, I think, to be able to address this matter further. Mr. Fong.

A point where I appealed the ruling of the chair. I was recognized, at least from the person sitting next to you. But at the end of the day, we are a deliberative body, and if we're not willing to have a discussion with multiple points of view, I don't know what the point of this extraordinary session is.

Mr. Fong, the discussion right now will be on the Bill, and there will be ample opportunity to be able to make your points with that. Ms. Irwin, you may open on SB 2.

Thank you, Mr. Speaker and Members, I rise to present SB 2. Californians pay far more for gas than they should. The last spike in prices cost our constituents millions of dollars while the oil companies were pocketing huge profits. But inexplicably, even when we are not experiencing a spike, we pay higher prices than other states, even when we account for our taxes and environmental policies. Recently, we were paying an average of $2.60 more per gallon than the rest of the nation.

This is unacceptable and has led us to this special session and to this Bill. The Assembly Working group has been looking at the governor's original proposal since January, where we heard skepticism from many Members. The new proposal, however, addresses many of our concerns and I believe is a win for Californians. Basically, this proposal has three major components, transparency, accountability and the requirement to create a roadmap to transition to clean transportation. This Bill creates the Division of Petroleum market oversight that will act as a watchdog.

The experts in the division will have the ability to subpoena data and will be able to take a deep look at the day to day fluctuations of the market in California. We currently have no one in that role. The new division will be advised by an independent consumer fuels Advisory Committee made up of industry experts. If the new division Deems it necessary, it can share information and refer violations to the Attorney General.

In addition, this Bill provides for an annual report to the Legislature that includes a review of gas prices for that year. SB two allows, but does not require, the Energy Commission to establish a penalty based on a maximum gross gasoline refining margin. But before a penalty can be put in place, the CEC, based on the data and expert input, must make findings that the penalty will not affect supply, will not increase prices, and will not harm consumers.

If the penalty is established, the State Auditor will be required to complete an audit of the program and make a determination as to whether the program is achieving the intended goal of reducing gasoline price spikes and stabilizing the gasoline supply market. If the Auditor concludes that the program is not working as intended, then the CEC will be required to cease implementing the gross refining margin and the penalty provisions within 180 days.

Finally, and I think most importantly, the CEC and CARB, with input from the Advisory Committee and the division, will develop by the end of 2024 a roadmap to achieving our clean transportation goals. This will require working with all stakeholders, including the oil industry, to determine how to reach our 2035 goals without adversely affecting our constituents. People in California are suffering with the increased costs of goods. Many simply cannot afford to pay the huge increases in gas prices that we have seen.

And this is especially true for those who are living on the financial edge, working low wage jobs, but still having to commute. Members, every time there is a significant increase in gasoline prices, we react with Select Committees and new studies. This time is different. We have the chance today to do what Californians deserve, which is to provide real oversight, with dedicated expertise to oversee the gasoline market, and to create a plan for achieving our Low carbon and clean air future. Your constituents are counting on you. I respectfully ask for your aye vote.

Thank you, Ms. Irwin. And Mr. Joe Patterson, you're recognized.

Good afternoon. Thank you. Mr. Speaker, I provided amendments at the desk to provide immediate relief to Californians.

Clerk will read.

Senate Bill two, with amendments by Assemblymember Joe Patterson, set one.

Thank you.

The amendments that I provided suspend the state's gas tax for one year to reduce gas prices. They enact a gas tax holiday to provide immediate relief at the pump and backfills lost transportation revenues from the state's General Fund. They also strike language that gives unchecked power to unelected bureaucrats to raise the price of gas.

The reason these amendments are needed is because a, it provides immediate relief to consumers as gas prices are still at historical highs. In fact, it helps ease $17 paid by Californians in state taxes for each every fill up.

I'm sorry. Point of. Point of order, Madam Majority leader.

Mr. Speaker, the gentleman from Rockland made a motion, but started to argue his motion before you ruled on it. He was out of order.

Your point is well taken. We have amendments that are at the desk, Madam Majority leader, and I would.

Move to table them.

Motion to table and second by Mr. Gibson.

Point of order.

There is no point of order, Mr. Callagher.

Mr. Speaker, amendments were crossed timely and under the rules on an amendment. The author of those amendments is allowed to debate that and make the case for the amendments.

However, when the motion is made, it is the only emotion and that has to be ruled on. Once the Member started to argue his motion, then he was out of order.

Thank you, Madam Majority leader. Mr. Gallagher, your point of order is not well taken. Madam Majority Leader, there is a motion to table seconded by Mr. Gibson. The amendments which were presented today. Clerk will open the roll. All those vote who desire to vote. Members, this is a procedural motion. Madam Majority leader is asking for an aye vote. Mr. Gallagher is asking for a no vote. Clerk will close the roll. Tally the votes. Ayes, 55. noes. 19 amendments are laid on the table.

Mr. Lackey, you are recognized.

Members. I know the headline of this Bill in front of us says, this Bill is dealing with maximum gross gasoline refining margins. But make no mistake, this is a job killing gas tax. A tax if you represent a commuter district, like I happen to, and vote for this measure, your yes vote will eventually lead to a gas tax on hundreds of thousands of working class constituents who don't have the luxury of a zoom job.

We don't need unelected, unaccountable state government bureaucrats investigating why our gas prices, prices are so high. If we're truly looking for transparency and accountability in pricing, let's start off with telling the truth to all Californians who will listen. The state does not have enough gasoline refining capacity to meet demand. Let me say that one more time, because it's very, very salient point. The state does not have enough gasoline refining capacity to meet demand.

Supply constraints are mostly the result of regulatory burdens and policies implemented by guess who? Our state that do not allow procedures to meet current demand. This Bill before us will further exasperate this problem and lead to gasoline supply reduction. This is real world economics, plain and simple. Our constituents deserve real solutions to this crisis, not a hodgepodge attempt to demonstrate some kind of action was done by this body. This Bill will have a disastrous impact on my commuting constituents and our economy. So I plead for you to lay off. I know you won't vote no, but least lay off, because the rest of us from my caucus will vote no.

Thank you, Mr. Lackey and Assembly Member Lee. You are recognized.

Thank you, Mr. Speaker and Members. One year ago, I introduced a measure to redistribute excess profits, windfall profits from big oil to the people of California. And now today, through the feedback of this body and the Senate and the governor's office, we see the evolution of those proposals to something that is quite strong. The strongest point, and as Assembly Irwin had already talked about, the strongest point of this proposal is in data transparency.

We can truthfully and wholeheartedly now, know the practices of the five companies that control the entire oil refining business basically in California, and understand that when they say that prices are going up and down, what's the truth at that? But even with the data that we see today, here's the numbers we know. Here is the numbers that we know with the data we see today.

The average profit per gallon between 2001 and 2021 for 20 years was 32 cents per gallon in 2022, in quarter two and quarter three. Because we only get quarterly breakdowns right now. Their profit per gallon was 91 cents per gallon and gallon. Now, I know the other aisle and the oil industry love the talking point that it is all just regulations and taxes. But our regulations and even the gas tech are a constant. So what would account for constant spikes of up and down?

And even after you take away taxes, the five big oil corporations make an average 30% more profit in the State of California than any other state in the nation. Any other state. And oil corporations, they want to blame us for investing in a green future, for looking forward to a clean environment for all of us, and divert themselves and distract from their greed.

Because isn't it always so convenient that the oil company is saying the thing that is keeping them from setting their prices low is taxes and regulations that they would benefit from not having? Isn't that so convenient? And then another great data point is that three times in the last decade, three times in last decade, the oil refining margin went over gallon three times, and two of them were in the last year low.

And if we had this proposal last year, as millions of our constituents were suffering from record high price gouging, if we had a proposal, say, set with a penalty of gallon that would have generated $1.7 billion to redistribute to consumers, to redistribute to Californians, and that is consumers in red, blue, independent, every district, that they would benefit from that money. I want to applaud the Governor for taking swift action on this, and especially the Legislature for our feedback on it.

Fossil fuel obsolescence is on the horizon. They know that. And they will make sure that they will squeeze every last penny until that future happens. And we should not stand to let their greed for any day longer. I ask for your aye vote.

Thank you, Mr. Lee and Assembly Member Fong, you are recognized.

Thank you, Mr. Speaker. Members, I rise to oppose SBX 12. Members, I am proud to represent the energy production capital of California. And this Bill will have tremendous ramifications and consequences. If you look to my community, no energy goal can be met without my community. We produce 70% of the state's oil production and 60% of the state's renewal production. And to create this false choice to punish energy production is the wrong approach.

This rushed, job-killer bill creates a new layer of government, make no question about that. A new, untested group of political appointees that will control how much Californians pay for gas and micromanage the energy production in California. California families are demanding affordable gas prices, not more red tape. This Bill, despite what the author says, does nothing to lower the price of gas. In fact, it may do the opposite and increase prices by worsening existing supply problems.

The result of this short sighted legislation will be energy market disruptions, higher cost, and energy shortages. In 2000, Members, there was a report by the Attorney General, Attorney General Bill Lockier, that outlined the concerns on gas prices. It warned that we needed more refining capacity, more energy infrastructure, and California's unique blend that makes us an energy island would have detrimental effects to our gas prices. Since then, these challenges have gotten worse.

We've lost refining capacity, we lack energy infrastructure, and California is even more isolated when it comes to gasoline supply. And of course, we all know that taxes have gone up, and we are now paying the price, literally at the gas pump. This proposal is being jammed through the process with minimal public and stakeholder input. Members, both sides were not present in this conversation. How can you have a debate when it's only one side?

In fact, this proposal creates so much havoc with drafting issues that is already in need of cleanup legislation, and this Bill hasn't even passed. There is now a pledge by the governor's office to remove essential oil production from these additional regulations, and that is needed. Policies, Members, that we pass in this body must be grounded in economic reality, not to create political headlines. Increasing energy supplies is the solution to lower gas prices.

Price controls will only lead to long lines at the pump, like it did under President Jimmy Carter. This idea has empirically failed. It has not worked anywhere that it's been tried. This Bill is a senseless attack on domestic energy production that will only harm hard working Californians in the field. By creating a hostile business climate, the Governor is putting Californians out of jobs and making California more dependent on foreign countries for energy. Refineries are only able to buy the oil that's available.

If the only option is foreign oil, then the state is undermining its own environmental efforts by making us more dependent on foreign oil. This proposal will reward authoritarian countries who disregard the environment, do not have adequate labor laws, and look the other way. When it comes to human rights abuses, imported oil arrives on tanker ships, which is much dirtier than what car, which burns fuel much dirtier than what cars and trucks use. Every barrel of a tanker undermines California's environmental efforts.

Oil produced in California by Californians adhere to the strictest environmental laws on this planet. Now, there's been a lot of chatter about alleged price gouging. There are current laws on the books when it comes to preventing price gouging. The Attorney General currently has this authority to prosecute offenders to protect consumers. It has not been invoked. Members, has there been any exercise of these statutes? There hasn't been. Why? Because there's no evidence. No matter how many times you say it, the evidence comes up empty.

Passing a Bill like this, modeled after ideas that have empirically failed, disrupting the energy market and ignoring the economic reality where every single Californian will ultimately bear the direct as well as the unintended consequences and costs, is the wrong approach. If the Governor is serious about lowering gas prices and safeguarding the environment, he should reevaluate his own policies that make gasoline more expensive and limit supply and approve the thousands of permits for more domestic production that are currently sitting on his desk.

Members, as the previous author stated, there was an attempt last year to gut and amend a Bill to impose a windfall profits tax. Again, there is no evidence that this idea works. We are moving into an untested process structure that will empirically lead to energy shortages. Members, I have no idea why we aren't having a real discussion that allows both sides to have be part of this conversation.

We are going to allow the other side to participate after the Bill has been passed and after the consequences. That is backwards. Members, on behalf of thousands of workers in the energy sector, in my community and throughout the State of California, I ask you to vote no on SBX 12.

Thank you, Mr. Fong and Assembly Member Muratsuchi, you're recognized.

Thank you very much. I represent two major refineries in my district, the PBF refinery in Torrance and the Chevron refinery in El Segundo. And I rise in strong support of this measure. I'm frankly at a loss as to why, why my colleagues on the other side of the aisle are not supporting this strong measure to bring some transparency to this industry that has largely been unregulated in terms of how gas prices are set.

You know, my colleague from San Francisco and the Utilities and Energy Committee said it well this morning at the Committee hearing. We have an oligarchy here. Oligopoly here. Not an oligarchy, an oligopoly. That's for another country. We have an oligopoly here. We have such a small number. There was testimony this morning about how, from the governor's office, five refineries control 97% of the gas that California consumers consume.

And so the biggest benefit of this Bill is to give power to the Energy Commission and the Attorney General's Office to have the subpoena power, something that I've been calling for to get more transparency so that we know exactly what we're dealing with here. The testimony provided by the governor's office was that Californians are being charged a record $2.61 more per gallon than the rest of the nation.

And while the oil, big oil, wants Californians to focus on the gas tax and the environmental regulations as the reason for that higher price, in fact, California's gas tax and fees and regulations add up only to $0.99, less than half of that difference in terms of California gas prices being higher than the rest of the nation. The oil industry will not explain where this mystery surcharge that everyone, both Republicans as well as Democrats, have been talking about this additional $1.62 comes from.

When the Governor first started calling for the windfall profit tax. I wasn't in support of that. I wasn't in support of that because I was arguing with my colleagues. We don't have enough information to be able to make sure that we're regulating gas prices. So that, my biggest fear is that the penalties were just going to be passed on to consumers. That is a bipartisan concern. This measure, it doesn't require penalties, it doesn't require any maximum profit caps.

All it requires is, number one, is that we get that information so that we know how we arrive at the gas prices. And number two, the reason why I feel strongly in supporting this Bill is that this Bill specifically prohibits the Energy Commission from establishing either a max margin or a penalty. Unless the Energy Commission finds that the likely benefits to consumers outweigh the potential cost to consumers, how do they go about making that determination? The Bill spells out three specific criteria.

It says that the Energy Commission must, number one, examine whether it's likely that the max margin in the penalty will lead to a greater imbalance between supply and demand. So going to a colleague from Lancaster is concerned about supply. That is one of the specific criteria that this Bill will require the Energy Commission to address. And number two, whether it's likely that the max margin and penalty will lead to a higher gas prices at the pump on an annual basis.

So again, this Bill, number one, it's transparency. It's seeking more information so that we understand how our gas prices are set. Number two, it specifically requires the Energy Commission, it prohibits the Energy Commission from passing any penalties or any maximum profit on oil by focusing on the issues of supply and gas prices. That is why I feel that we need to support this Bill for the sake of California consumers. The bottom line is this, if you don't have anything to hide, then you shouldn't be worried about this Bill.

Thank you, Mr. Muratsuchi, and Assembly Member Alvarez, you're recognized.

Thank you, Mr. Speaker. I rise today not to side with what some folks would say are the good guys and other folks would say are the bad guys. I actually rise today to speak on behalf of the ones that it really matters to, and that's the people of California, the constituents. First and foremost, we should absolutely do everything we can to protect our consumers from the price of gas.

And this Bill goes a long way in providing us with important information in order to understand whether that's the case or not. Before I continue, really acknowledge Assembly Member Jackie Irwin for her work leading to where we are today, because there's a lot of pieces of this Bill that are actually really important, but the one that I personally care about, and that hasn't been mentioned here today and that I hope that you also take a lot of interest in, is the final section of the Bill which talks about a transition plan, something that's been talked about quite a bit but never really discussed in much detail.

This Bill has a provision that would require that a transition plan be brought forward as a result of this law being enacted. And I think that's a good thing. I want to read why, read to you why. A headline from an analysis done just last week by calm matters. Communities with high concentrations of electric cars are affluent, college educated, and at least 75% white and Asian.

In contrast electric cars are almost nonexistent in black, Latino, low income, and rural communities, revealing the enormous tasks that we face in electrifying our fleet. That is really important. And the language in this Bill, I think, attempts to address that. But in my conversations with the governor's office, with, as many of you wish to speak to me on this and with Ms. Irwin, I've said that this needs to be a more robust plan. There is more work that needs to be done.

I don't want this just to be a statement that we can stand on and say we are working towards this. No, we have to actually work towards this. The reality is that communities of color, a lot of the communities that I represent, are not adopting electric vehicles and do not have the infrastructure in place nor the resources to do so.

So it is my full expectation that after this Bill passes today, because I know it probably will, that we get to work on actually addressing an issue and not just use these as opportunities to talk to cameras and to grab headlines, but to actually do the real work that needs to be done. I think this is a good start, but I think we have more work ahead.

And I look forward to, as a Legislature, really taking the reins of this conversation of the transition, what is that really going to look like? How are we actually going to help? We can start by first switching up the cap and trade policy funding policy where only 25% of that money goes to disadvantaged communities. How about we put more money into disadvantaged communities? There's things we could do. And I look forward that after today's vote, we continue to do that work so we can have a real transition into the future. Thank you, Mr. Speaker.

Thank you, Mr. Alvarez and Assembly Member Mathis, you're recognized.

Thank you, Mr. Speaker. Members, we've already heard a lot of debate on this, and one of the big questions keeps coming up, where does this extra cost come from? It's actually relatively simple. We've cut back our domestic supply. We're down to 30% domestic. And what you'll hear is global crude oil. It's a global cost, but there's a cost in transporting 70% of our raw crude into California. I'll say that again. 70% comes from outside of the state, comes on ships from other areas.

This is the same oil that when there's an oil spill, this is the oil we're talking about. It's not what's made here at home, it's what we're bringing in. There is a cost to importing crude oil from other countries. Where do you think that cost goes, it gets passed on. That's that added cost people are having to pay. California, we have the highest cost of doing business, the highest taxes, the fees, the regulatory burdens. So we're going to add another one with this Bill.

We talk about record profits, but we do not talk about the margins of inflation and what's driving the cost of everything up. And it starts with the taxes and fees that we put on everybody across the board.

And then you add in our minimum wage increases that push the cost of producing anything up, which then pushes the cost of electricity up, which then pushes the cost of producing water up, which gets into our raw materials and our production cost and our fuel cost, and then we get to retail. It is mind blowing that we're really not even having a debate. This is the debate right here. And we've shut down the other side.

We haven't recognized other people who have other ideas, but this is what we're going to push forward. Another cost to Californians is what we are pushing forward. Now, you can all spin it however you want, but the reality of it is until we increase domestic production, the cost is going to continue to rise. That's a fact.

That's something that we can control our domestic production. And you've already heard it. It's the most environmentally friendly. We have the best OSHA protected job guidance rules for our employees. We do everything here cleaner and better than the other guy. But yet 70% is already being taken away from our locals and is being imported.

So next time you pay at the pump, like everybody in my district, because we got Tule Lake that's coming back, and you can drive an electric car through a flood, and you're going to get paid and you're going to keep paying and keep paying until we figure out a way to cut taxes, which has been a Republican option. It's been an option we put forward over and over again. But you all don't want to do that. Instead, you want to do this windfall socialism nonsense.

And we keep seeing how well that works. Every time you guys have done this, the cost and everything else has gone up. So if you want to keep taxing our folks, vote I. If you want to figure out a better way to reduce costs in California, vote no. Thank you.

Thank you, Mr. Mathis. And Assembly Member Bryan, you're recognized.

Thank you, Mr. Speaker. About a year ago, my partner picked me up from the airport. Coming home from session, we're going to look at a new apartment. And as she picked me up, the gas light was on. I said, we need to get some gas because I'm one of those people. And she said, I know my car because she's one of those people. And on the way to check out our apartment, the car stopped in the middle of the road on a left turn lane.

So I walked six blocks in my suit during a heat wave. Pulled up at a gas station, got a tank, told the guy in the front, he said, look, I'll sell you the tank for 20 or you can borrow it for 10. I said, I'll borrow it for 10, but I don't have any cash. I'll give it to you when I get back. He said, that's all right. We'll take your card at the pump, for the pump, and I'll start pumping it for you. Appreciate it.

So I do the transaction. He starts pumping. I walk back out. He's pumping. And I noticed the pump is $0.03 higher than every other pump in the station and higher than the sign. And it bothered me and it impacted that relationship, but I had no choice. We're stalled out six blocks the other direction. So I took my can and I walked it in my suit, six blocks down, filled up the car. I got in the car with my fiance. We were driving back to the gas.

I said, look, this is what happened. And I don't know why he did that. Why did they do that? I was struggling with it. It offended my sense of decency. And she looked at me and she said, because he can. Because we need it. They know we need it, and you had to get it. That's what's happening industry wide. It's not taxes, it's not regulation. It's because we need it. And they can. But under this proposal, they can't anymore. We're going to collect the data.

We're going to collect the evidence that shows whether the price you pay at the pump is relative to the cost needed to produce it, or whether it's simple price gouging. Like everything else we saw the last few years when people needed it and they could. We just changed this with insulin in California. We changed it with other things. We put emergency price gouging methods in the last couple of years.

They didn't affect the price of the pump because they have too much power in this body and in our state. But again today, that can change, and it will change with evidence. It'll change with data. It'll change with a concentrated group of experts evaluating our supply, evaluating our prices, and it'll change with the people of California being informed the entire process. It won't be this black box of information. Mystery surcharges, the war in Ukraine. It'll be data driven with California evidence. I respectfully ask for your aye vote.

Thank you, Mr. Bryan and some Member. Rubio, you're recognized.

Thank you, Mr. Speaker and Members, I have a couple of questions for the author. First, I don't think the language is clear on whether this refers to extractors or producers, if she can clarify that. The other question is, I also have some or the other comment. I have concerns, as my colleague from San Diego does, and a lot of us here on the floor.

Can you tell me if the governor's office will continue to work with us and help address the concerns that both I and my other Members have? Thank you.

Ms. Irwin. She will address those in her closed. Ms. Rubio, your time is finished.

Yes.

Okay. Thank you. And, Leader Gallagher, you are recognized.

All right. Thank you, Mr. Speaker and Members. First, a word on process, because I think this is really important, and what I want to ask this body is, why do we keep allowing this to happen? You are about to vote on a Bill that's been in print less than a week, right.

When we've been in an extraordinary session for months, where we could have had language to look at, where we could have had public hearings, where we could have allowed a lot of different ideas to be thought about, worked into the process, and instead, you're allowing the Governor to drive the policy, not you as a Legislator. Same thing he did last year, by the way. And what did he say?

He went to New York and he said about you all, us in this body, that, hey, I had to jam the Legislature. I had to jam them in order to do the right thing. And now he's doing it again. He doesn't care about our ideas. He doesn't want a legislative process. Think about it. We called this extraordinary session for one reason only. He called it right. He called it to what? Help consumers and lower the price of gas.

And we've heard exactly one idea in this whole time. We've heard one idea his. We've had several bills that have been introduced in this extraordinary session. None of them, not yours and not mine, got a hearing or had any kind of discussion. Instead, the deal got done not by you all, but by the Governor and the leaders. And they said, okay, here you go. You're going to have to vote on it. You got a week. What kind of process is that?

So part of what I'm saying today is, man, stand up for yourself. Stand up for the Legislator that you are, that you were elected to be and say, no, this is our process. We make policy. Governor, thank you for your ideas. We'll take those into consideration, but we'll make the policy, and that's not what we have here today. And, man, I hope that that's going to stop sometime soon, maybe today. This is the chance to say, no, stop it.

And we can continue to have this extraordinary session. We can hear all of the ideas and we can actually do something that actually is going to lower prices, gas prices for consumers because this isn't going to do it. I mean, look at the language. Now, we did have one hearing, right? And a lot of people are talking about the experts and what people are saying. We heard from experts actually in the oversight hearing, and experts from both Berkeley and Stanford testified.

Maybe the only time that Berkeley and Stanford have ever agreed. But these experts both told you that this policy will lead to higher gas prices and likely shortages. That's what they said. Are you going to listen to them in the one legislative oversight hearing that we've had in this entire extraordinary session? That's what they told you. And the mystery surcharge, they didn't make it a mystery to you. They actually explained it. They told you that that is actually happening between the refiner and the retailer.

But this Bill is only going after the refiners and indirectly the production side as well. You're not doing anything about what's happening between the refiner and the retailer where the mystery surcharge is. But you're also doing absolutely nothing about the number one cost driver of gas in this state, which is taxes and regulations. And they made that clear. A dollar 20 or more a gallon that we pay at the pump, that our consumers pay at the pump because of the policies passed out of this building.

You want to do something about price, you have to do something about that. We gave you the opportunity. That's why we were pushing to suspend the gas tax. We could have had those discussions. We could have done something that actually is going to lower their prices. Instead, we're going to do something that's going to raise their prices.

And you're going to put the power not in your hands who were elected to help them and protect them, but put the power in a bunch of unelected people's hands, 30 seconds probably so you can blame them later when they raise everybody's gas price. But the gentleman from San Diego is right. He pointed out there's a lot of disparities here. I come up from a rural district. Right. We can't afford electric vehicles. We drive cars with gas, and so do his.

And we're the ones that are going to pay the price of this policy. Unfortunately, it's the wealthy who drive electric vehicles in the wealthy districts in the state who are going to benefit. We're going to pay the price. I'm tired of paying the price. But today we can stand up. We can finally stand up. The gentleman from Torrance misspoke, but he's actually right.

It is an oligarchy, because right now it's the Governor and his special interests that are pushing the agenda, and there's no Legislature to check in. Time is exciting. That's an oligarchy. But it could stop today if we stand up for ourselves. Thank you, Members.

Thank you, Mr. Gallagher and Assemblymember Ting, you are recognized.

Thank you, Mr. Speaker. Appreciate it. I'm not sure which oversight hearing our minority leader was listening to, but I was at a different one. And in it very simply when I kept asking why the oil industry is making record profits in California over every other state in the union. Today, we finally got an answer. There's no competition. And let's go back to economics. I like my colleague from Kearns. Let's talk about economics. What happens when there's no competition?

Well, the industry gets to do whatever they want. They get to set the price. They get to, just like my colleague from LA said, they can do it because they can. And so what do we see? We saw no competition. We saw this body watch prices go up and up, did nothing about it in terms of checking this industry. And now we have what I think is a very thoughtful proposal, which is we are going to get information. We're going to get data.

Because what you need to do with an oligopoly in order to make sure that they don't set the price so high that people can't pay for it because there's unlimited demand for this product, requires regulation. So what we have to do with the utilities, because there's a monopoly, we have to create a certain level of regulation to make sure people can get this product that absolutely everyone needs. And I think we talked about that.

We talked about how important this product is to get our folks to work, get our kids to school, get around our communities. But this is what leadership is about. This is a problem. We are trying to solve it. We are trying to do it thoughtfully, with information, with data, with transparency. Because if we don't, we're going to see what happened already. We have an industry that told us, just trust us. Trust us on scheduling. We got it handled.

Well, we had six refineries go down, some unexplained, because I can't even find information why these refineries went down in October. But what happened? Prices spiked because there's no competition. So unless we, when I say we, we, the state, are going to do something to reign in this industry, guess what's going to happen?

They're going to charge whatever price they want to all 40 million of us, and we're going to have to pay whatever price they want unless we pass this Bill and stand up to this industry and to say enough is enough. I honorably ask you to vote for SB two.

Thank you, Mr. Ting and Assembly Member Essayli you're recognized.

Thank you, Mr. Speaker. I'm new to this body, and frankly, I'm more confused by this debate. I thought the agenda was clear. It was to raise gas prices and drive people out of their cars and into the commuter system, into the public transportation system. And that's what our policies have been doing. We're driving up gas prices so people make the decision to get out of their car and into public transportation. And that's exactly what's happening.

It's been very successful, and now we're seeing the fruits of that. The gas prices are higher than they've ever been before. I'm also confused because I don't understand what the hurry is. Gas prices have been high for the last year and we haven't made it a priority to bring them down. But now all of a sudden, we have to pass a Bill we don't even know fully understand, hasn't gone through committees or any process at all. We just have to vote on it. So I'm confused.

I'm also confused by the list of supporters. We're supposed to believe that these supporters are interested in lowering our gas prices. And I represent a commuter district. We drive 2 hours at least a day in traffic. The supporters are action for the Climate emergency, California Climate Voters, California Environmental Justice Alliance, California Environmental Voters, California Green New Deal Coalition, Clean Power Campaign, Environmental Working Group, Fossil Free California, and the Sierra Club.

So I'm supposed to believe that these interest groups are interested in bringing down my gas prices? I don't believe it. I think we're saying the quiet part out loud. We want higher gas prices and shortages. That's the actions of today's decision. It will result in higher gas prices and shortages. But based on the ideas that the other side of the aisle has laid out, I think it's consistent. You guys want people out of their cars, and this is going to help you do that.

I don't believe the Energy Commission is going to bring down gas prices. Just look at their track record. They now regulate our electricity prices. Our electricity prices are almost double than what the rest of the United States pays. We almost pay double in electricity prices. So if they can demonstrate that they can bring down our electricity prices first, I might consider giving them more power to regulate gasoline. But the track record is not good.

If we want to talk about excess profits, I think at some point we need to have a conversation about excess government profits. Our budget has doubled here in the last 10 years. We had a 100 billion surplus last year, and we had to give it some of it back because of the gain limit. Our budget from 2021 went from 162 billion to 2022 to 242 billion. And now we're going to have 296 billion almost 300 billion. What's the appropriate amount of profit for the government?

I think we should have these conversations. So, with all respect, I oppose this Bill on behalf of my commuters and all gasoline consumers throughout the state, and I welcome a conversation on bringing gas prices down. I hope that could be bipartisan, collaborative and productive, and not coercive and pressured. Thank you.

Thank you, Mr. Essayli, and Mr. Joe Patterson, you're recognized.

Thank you, Mr. Speaker. I read the Bill, which, even though, given the abbreviated timeline, I had the opportunity to actually read it. And one thing that really struck out to me was that this legislation, or the amendment, struck language that said that any money collected from these penalties would be returned to the taxpayer in the form of refunds.

So all this Bill does is it creates a slush fund, and not a dollar is guaranteed to go back to alleviate people who are actually suffering from the high cost of gasoline. And I don't know why that was struck from the amendments, but I think Californians ought to know that there's no guarantee that it's actually going to alleviate gas prices. I will say it seems like we have a bipartisan agreement that we want to lower gas prices, but this isn't going to do it.

And so I respectfully ask for your no vote.

Thank you, Mr. Patterson. And Assemblymember Member Bauer-Kahan, you're recognized.

Thank you. I, like many of you, also read the Bill, and would like to clarify that it makes very clear that all penalties will come back to this body to be directly used to help the people who are hurt by the high cost of gas prices. We are elected by the people to take care of them. And this Bill allows us to do exactly that. So I wanted to make that clarification.

In addition, I want to say that I think a lot of incredible work was done on this Bill. I've had the privilege of sitting through two hearings in utilities and energy and talking about this Bill at length with experts and the governor's experts and the attorney general's staff who will be moving this forward. And I think that at the end of the day, what this Bill does is it provides sunshine, sunshine to what is happening here in California.

The profits in this state outpace profits anywhere else in the world. And as Assembly Member Ting has so aptly put, put costs aside. That's just the profits. They are profiting off the backs of everyday Californians. And we need to figure out why. Because to date, our experts have not been able to figure out why. I earnestly believe that when we get this information that this Bill will allow, we will never need the penalties.

Because once there is sunshine on the behavior of big oil, things will change and Californians will not have to pay more at the pump than any other American, which is what happens today. In addition, I think it's really important that the Bill was changed to make sure that we don't do anything to hurt Californians, that no penalties will be put into place if the CEC finds that the price will go up at the pump or if supply and demand cannot handle it.

So the Bill is crafted to ensure that we are looking out for the people we elected to show up here and look out for the Californians who are hurting, who every day have to decide if they're going to pay their rent or put food on the table or pay for childcare or drive to work because gas prices are so high and all of those dollars we have seen are going into the pockets of big oil. So with that, I respectfully ask for your aye vote.

Thank you, Ms. Bauer-Kahan. Seeing no other Members wishing to discuss the measure, Ms. Irwin, you may close.

Thank you very much. And I really do appreciate the very robust discussion. I do want to clarify when we're talking about process, because I think a lot of the other questions were answered. This is about transparency, and transparency is not going to drive prices up at the tank. Let's be very clear on that. But I also want to talk about process.

In both the Senate and the Assembly, there were four Members chosen by the speaker to work with the governor's staff, and we've been working with them since January. And we were very clear with them that the initial proposal could really create a lot of instability in the market. And most of the suggestions that we made in our working group ended up in this proposal. So this is not the Governor shoving down something down our throats.

This is a working group that made sure to address the caucus over the last month about what this proposal would ultimately look like. But I have also spoken to the governor's staff, and they are open to further conversations on issues that might require some cleanup. So to answer the question from the Assembly Member from Baldwin park, you have many cities that you represent. Again, really appreciate the discussion, and I ask for your I vote today. Thank you.

Clerk will open the roll. All those vote who desire to vote, all those vote who desire to vote, all those vote who desire to vote, Clerk will close the roll. Tally the votes. Ayes, 52. Noes, 19. The measure is passed. Without--Mr. Flora?

I'd make a motion for no vote changes or add ons. Just lock the roll.

Okay. Mr. Flora has been asking for withholding of the additions or changes on the roll call vote. And Ms. Reyes? I would move to allow for vote ads and vote changes. This is a motion, then, to allow for vote ads and vote changes seconded by Mr. Gibson. The Clerk will open the roll. This is procedural. Ms. Reyes is asking for an aye. Mr. Flora's asking for a no. This is procedural, Members, to allow Members vote changes or additions if they so wish. This is simply procedural.

This is simply procedural, members. Clerk will close the roll. Ayes 52, noes 16. Rules are suspended. Motion passes. Okay, members, we are back in motions and resolutions. And, Mr. Fong, you are belatedly recognized.

Thank you, Mr. Speaker. I move to suspend the rules and invoke the California constitution to withdraw Assembly Bill X 1-2, to temporarily suspend the state's gas tax to give immediate price relief and take it up immediately without reference to file.

And do you have a second? Seconded by Ms. Davies. Ms. Reyes would ask for a no vote. Okay, Members, there is a motion to suspend the constitution by Mr. Fong, which has been seconded. Mr. Fong is asking for an aye vote. Ms. Reyes is asking for a no vote. Clerk will open the roll. This requires 54. Mr. Fong is asking for an aye vote. Ms. Reyes, the Majority Leader, is asking for a no vote. Clerk will close the roll. Ayes 21, noes, 55. Motion fails. And Ms. Reyes, you recognize for your motion?

Mr. Speaker and members, ACR one by Speaker Rendon adjourns a special session sine die. I ask for an aye vote and for immediate transmittal to the Senate.

This will be taken up without reference to file. Is there an objection for an adjournment motion? Thank you, Mr. Flora. Okay, we will, members, we will be taking up this motion which has been seconded by Mr. Hart. Clerk will read the resolution.

Assembly Concurrent Resolution won by Assembly Speaker Anthony Rendon relative to the final adjournment of the 2023-24 1st extraordinary session of the Legislature.

And, Majority Leader. Majority Leader Rayes, once again, would you please state the open on this measure? We did the wharf. I need you to open on this resolution or you can respectfully ask for an aye vote.

Respectfully ask for your aye vote.

Thank you, Majority Leader Reyes. Seeing and hearing no further debate, Clerk will open the roll. All those vote who desire to vote on the resolution, Clerk will close the roll and tally the votes. Ayes 57, noes zero.

Resolution is adopted. And with that pursuant to ACR 1, for the first extraordinary session, is adjourned. Sine die pending adoption in the Senate. And members, we're back in regular session. Members, we're going to go on to the second day consent calendar. Does any member wish to remove an item for the consent calendar? Sorry? Does any members wish to remove an item? Seeing none, the Clerk will read the secondary consent calendar.

Assembly Bill 1312 by the Committee on Banking and Finance and activity in the financial transactions.

Clerk will open the roll on the consent calendar. All those vote who desire to vote. All those vote who desire to vote. All those vote who desire to vote. Clerk will close the roll. Tally votes aye 72, no zero. Consent calendar is adopted. Clerk will read the remaining items on the consent calendar.

Aye, 72. No, zero.

Assembly Bill 245

Assembly Bill 288

Aye 72. no, zero.

And Senate Concurrent Resolution 22.

Aye 72. No, zero.

Members, at this time, the State of the Judiciary is occurring in the senate chambers. We will be lifting the call and we ask that you take your conversations off the floor. We have adjournments in memory and just a few announcements.

So we are done with the business on the daily file. Quorum call is lifted. State judiciary is underway in the senate chambers, and we will have a lot of committees meeting this afternoon.

And if you need vote changes members, once you go ahead and be recognized.

Members, it's my understanding we will not have an adjournment in memory today. Thank you. So we'll be moving on to announcements.

The Committee hearings for today are as follows. The budget subcommittee one on Health and Human Services will be meeting upon adjournment in session in Capitol room 127. The budget subcommittee five on Public Safety will meet upon adjournment session, Capitol room 437.

The Emergency Management Committee will meet upon adjournment in session, Capitol room 444. The Natural Resources Committee will meet upon adjournment session, Capitol room 447.

The Revenue and Taxation Committee will meet upon adjournment session, Capitol room 126. And the Transportation Committee will meet upon adjournment accession in the swing space, room 1100. Seeing and hearing no further business, I'm ready to entertain a mission to adjourn.

Mr. Lee moves and Mr. Patterson seconds as this house stands adjourned. Actually, we have some announcements.

Not in here, of course. The session schedule is as follows. On Tuesday, March 20, eigth check in session. Wednesday, March 29. Check in session. Thursday, March 30. Floor session is at nine. Excuse me.

We have a motion to adjourn without objection, quorum calls lifted and the house is adjourned. We will reconvene on Thursday, March 30th at 09:00 a.m.