Senate Standing Committee on Appropriations

The Senate Committee on appropriations will now come to order, and unbelievably, I think we have a quorum. Please take the roll.

[Roll Call]

We do have a quorum. We are holding our hearing today in room 113 of the state capitol, and really glad to see so many of our Members here, so we'll probably have others that will join us. Presently, we have eight measures on today's agenda.

These are all items that have time sensitivity, so we will be entertaining do pass motions on these measures. The Department of Finance has let us know that they do not have files on any of the measures that are up for a hearing today.

Before we begin, I want to remind any witnesses to limit their testimony to the fiscal aspects of the Bill. Please refrain from lengthy policy discussions and repeating prior testimony in your comments. So we have established a quorum. So we're going to move on to the business of the day.

I'd like to start with file item number one, AB 628, by Assemblymember Wilson. Welcome. Please tell us about your Bill, assemblymember.

Thank you, Madam Chair. We do have two bills before you today, and I know one is later, and we had got permission to do it earlier. Would you like me to start with that one first? So it makes sense?

If you could start with AB 628, that would be great.

Okay, will do. All right. Madam Chair, Members, I'm pleased to present AB 628. This is a companion Bill to ACA 8, a measure that, if passed by the Legislature and approved by voters, would remove the exception in our state constitution that currently allows for involuntary servitude contingent upon the passage and approval of ACA 8.

AB 628 requires the California Department of Corrections and Rehabilitation, also known as CDCR, to create a voluntary work program. Further, it clarifies that CDCR and local jurisdictions set compensation for incarcerated individuals in state prison facilities and local jails, respectively.

If ACA 8 is approved by the voters, it will end the practice of involuntary servitude, which is a rule that have allowed California State prison to use forced labor.

By removing the longstanding exception to involuntary servitude for punishment of a crime, and by explicitly prohibiting slavery and involuntary servitude, it would fundamentally change the nature of work within our state's carceral system. For the first time in our state history.

This Bill would require that work assignments for incarcerated individuals is voluntary and that they would not be subject to discipline for refusing a work assignment, allowing for greater participation in rehabilitative services and helping to restore dignity and bodily autonomy to incarcerated individuals. Incarcerated people have long faced cruel treatment for any work absences.

This includes solitary confinement, denial of phone calls and family visits, and limiting participation in rehabilitative programs and disciplinary write ups that result in longer prison terms. Such punishments or threats of such punishments are often. Excuse me. Are often issued even when absences are due to illnesses or injuries sustained through work.

The current practice of forced labor does not prepare incarcerated people for success upon reentry and often presents participation in rehabilitative services. This Bill clarifies implementation of ACA 8 and currently has no opposition.

Very good. Is there anyone else that would like to testify in support of the Bill? Is there anyone who would like to testify in opposition? As I indicated, the Department of Finance is not here today. We'll bring it back to the Committee for questions and concerns. Or a motion? There is a motion. Would you like to conclude?

Thank you. I respectfully ask for an aye vote.

Very good. Please take the roll.

The motion is do pass to the Senate Floor. [Roll Call] Current vote is three to zero.

Three to zero. We will hold that open for the absent Members. We're going to move on to ACA. ACA 8, say that 10 times.

Thank you, Madam Chair. Senators, I'm pleased to speak to you regarding one of the California Legislative Black Caucus's reparations priority measures. This is Assembly constitutional amendment eight, also known as ACA eight, the end Slavery in California act. First, we are accepting the Committee amendments.

This measure would allow Californians the opportunity to vote to amend Article one, Section six, of the state constitution to prohibit slavery and involuntary servitude, without exception. Today, slavery takes on a modern form of involuntary servitude, including forced labor and prisons. Slavery is wrong in all forms, and California should be clear in denouncing that in the Constitution.

As a reminder, California is only among 16 states with an exception clause for involuntary servitude in its state's constitution, which includes Alabama, Oregon, Tennessee, Vermont. All of them removed their involuntary servitude language from their constitution.

These punishments and threats of punishments, as was noted in regard to AB 628, are often issued even when absences are due to illness or injuries of sustained work. That is not dignity, and this is about human dignity. Incarceration, people relationship to work should not be one of expectation and little to no agency.

This Bill also enjoys no opposition, and I respectfully ask for your aye vote.

So you have a scrambling up here because I don't believe we have any amendments at this time.

Okay, I'm sorry. I thought we took amendments in this Committee, but maybe they were on the 20th. It was amended. Okay, then that would be. My apologies. I didn't mean to.

That's okay. It looks like the amendments that have already been taken.

Okay, great. All right. I know we were doing lots of. Lots of amends at the last minute.

I do know that, too. And I just wanted to make sure that we weren't okay. We were all on the same page.

Yep.

And I got the clear from my staff that that was correct. Great. Very good. So, is there anyone who would like to testify in support of this ACA? Witnesses in support.

Good afternoon. Carmen Nicole Cox. On behalf of ACLU, California action. Thank you very much, Assemblymember Wilson. We are proud co sponsors and in support. Thank you. Thank you very much.

Clifton Wilson. On behalf of the city and County of San Francisco Board of Supervisors, in support. Thank you.

Thank you. Anyone else in support?

Good afternoon. Heroni Moa Gilar. Here on behalf of legal services for prisoners or children. All of us are none. A proud co sponsor in support of ACA eight. Thank you for your leadership, Assembly Member Wilson. Thank you.

Thank you very much. Anyone else in support? Is there anyone here in opposition? Anyone that would like to speak in opposition? Seeing none again, the Department of Finance is not here, so we'll bring it back to the Committee for comments, questions, concerns or a motion? There is a motion. Senator Becker, you may conclude, respectfully, ask for your aye vote.

Very good. Please call the roll.

The motion is do pass to the Senate Floor. [Roll Call]

That Bill has. That ACA has three votes. We'll put it on call for the absent Members. Thank you very much for being here promptly. Next, we'll move on to file item number three, which is Assembly Member Blanca Rubio. AB 1935.

Thank you, Madam Chair. And Senators recently signed and ratified. Tribal state gaming compacts and secretarial procedures have changed the dynamics of future payments into the Indian Gaming Special Distribution Fund.

AB 1935 would codify a recent agreement between the Administration and California's federally recognized gaming tribes on how to deal with the excessive surplus in the funding, currently exceeding $160 million in non General Fund monies.

This bill takes into account the interests of the respective parties, as well as the future solvency of the Fund, while allowing for over $80 million in surplus to be suspended. And refunded back to those tribes that paid into the Fund. There is no opposition to this bill, and I respectfully ask for an aye vote.

Very good. Is there anyone here that would like to speak in support of 1935?

Good morning, Chair. Good afternoon, Chairwoman Caballero and community Members. Thank you for your time. My name is Susan Jensen. I have the honor of serving as the Executive Director for Senega, which represents 52 tribal governments who are unanimously in support of this bill.

I won't go on because the Chairwoman did a great job of compromising, but basically, this bill reflects a fair and equitable compromise between the Governor and tribes, which keeps the SDF solvent and still allows for over 80 million in surplus funds to be suspended and refund back to the tribe. Thank you for your time.

Thank you very much, Madam Chair Members of the Committee. Scott Governor, on behalf of the Morongo Band of Mission Indians, in support.

Thank you, Madam Chair Members. John Latimer. On behalf of the Soboba band of Luceno Indians, in support.

Thank you. Anyone else in support? Is there anyone here that would like to testify in opposition? Seeing none, we'll bring the. Again, the Department of Finance is not here. We'll bring the issue back to the Committee. Any comments, questions or concerns? There is a motion. Senator Ashby, please call the roll.

The motion is, do you pass?

Respectfully, ask for an aye vote

Thank you. Nice and short. Appreciate that. Please call the roll.

The motion is, do pass to the Senate Floor. [Roll Call]

The current vote is 40. We'll put that on call for the absent Members.

Thank you.

Let's see. We'll move on to Assembly Member Kalra. You're next in line. AB 2288.

Thank you so much, Madam Chair. AB 2288 would make several reforms to paga that improve its effectiveness as a vital tool to enforce workers rights, promote making workers whole, and incentivize employer compliance.

This Bill is a product of lengthy stakeholder negotiations to reform POGA in a way that would help reduce prolonged litigation and, most importantly, improve the outcomes for both workers and employers. AB 2288 alongside its companion Bill, SB 92 by Senator Umberg, preserves PaGA as a unique tool for enforcement that will benefit the state twofold.

First, as a supplement to the state's labor enforcement efforts, given the limited public resources, and second, as a recipient of the 65% and recovered POGA, penalties that were required would be required to be paid to the state. I'm happy stakeholders are able to reach an agreeable outcome.

And by passing AB 2288 this allows us to avoid a ballot measure designed to gut Paga.

Here to answer questions and for comments, Ben Gullembeck, on behalf of California Chamber of Commerce, Madam Chair and Members, Ben Gulumbeck, on behalf of the California Chamber of Commerce, in strong support of AB 2288 and obviously its companion Bill as well, SB 92, which provide much needed reform to the private attorneys General act.

We want to thank the author, Senator Umberg, the Administration, and, of course, the California Labor Federation for working with us on this issue. You know, we've heard for many years from our Member companies, both large and small businesses, about how frivolous Paga suits have plagued them and cost millions of dollars.

And what was once a well intentioned law has unfortunately been manipulated, enriching attorneys at the expense of workers, small businesses, and nonprofits who serve the most vulnerable Californians.

What's in this Bill and its companion Bill represent historic reforms to address employers concerns while also ensuring that California workers can feel confident that there's a robust labor law enforcement against bad actors. We strongly urge you to support this historic and long overdue reform and respectfully ask your.

I vote very good.

Those in support. Madam chair Chris McKaylee, on behalf of the Los Angeles Area Chamber of Commerce and Shrm in support of the Bill. Thank you.

Thank you, Madam Chair Members. Kenton Staphone. On behalf of the California new car dealers, in support.

Thank you, Madam Chair Members. Matthew Welln with Western Growers proud to support the Bill today. Thanks.

Thank you, Madam Chair Members of the Committee, Louis Brown, on behalf of the California Grocers Association and a coalition of agricultural associations in support.

Thank you. Thank you, Madam Chair Members. Doug Subars, on behalf of the California Professional Firefighters and the California State University Employees Union in support.

Thank you. Anyone else in support? Is there anyone here in opposition? Seeing no opposition. Bring it back. Again, the Department of Finance is not here. Bring it back to the Committee for comments, questions, concerns. There is a motion by Senator Bradford. I just, I want to make sure to thank the author for your work on this.

And I also want to recognize the California New Car Dealers Association, the California Chamber of Commerce, the California Restaurant Association, and Western Growers Association for working with all of the stakeholders, many of whom testified here today to implement meaningful reforms of PAGA. This is long overdue. It is a good deal that will provide much needed relief.

So thank you to everybody that had a hand in making this possible. I believe it's going to save, it's going to save the workers or get them more money in their pockets, stop the bad actors, and also be good for the state. So I appreciate that. We'll allow you to conclude.

Thank you, Madam Chair. I also do want to thank the California Chamber of Commerce and California Labor Federation, as long as, as well as a number of other groups, the new car dealers, consumer attorneys, California Sierra Le, and so many others that played a role in being here today, as well as the Governor and the Administration.

I think the governor's urging really helped us get to where we are today, along with leadership in both of our houses. And everything you said is absolutely true, Madam Chair.

I think this will bring relief to a lot of businesses in terms of frivolous litigation, while still allowing the core of what paga is about to be able to be there to protect workers. And with that I respect. We ask for an aye vote.

Very good. Please call the roll.

The motion is do pass to the Senate Floor. [Roll Call]

The vote is four to zero. We'll put that on call for the absent Members. Assemblymember Garcia, you're up next, but. Okay, we'll go back. That's what I figured. Your next up, AB 20113.

Thank you, Madam Chair and colleagues, given that this is a policy committee, I won't dive into. This is a fiscal committee, I won't dive into the policy. I would just say that a lot of work has gone into this by a large stakeholder group. We introduced this bill to allow for stakeholders to chime into the policy process.

Originally, the Governor put forward the policy in a budget trailer bill.

I think the outcome of us allowing for stakeholders to engage on an issue that's been decades overdue, allow for a balanced approach to solve a problem that's been taking place at the Department of Pesticide Regulations, reforms, measures for accountability, and the resources that the agency needs to do their job on all spectrums. Respectfully ask for your aye vote.

Very good. Is there anyone here that would like to testify in support of AB 2113? Is there anyone here that would like to testify in opposition 2113? Oh, a tweener. Okay, we'll take that too.

Madam Chair, Members of the Committee, Louis Brown here today on behalf of a coalition of agricultural organizations, Western Plant Health Association, Crop Life America. We were originally opposed to this bill. In the efforts working with the Administration and Mister Garcia, we are now neutral on the bill.

We realize the large fiscal impact this has, but hopefully the transparency and accountability measures, the additional staff will result in significant benefits to the agricultural community. Thank you.

Thank you very much.

Good afternoon. Matthew Well, Western Growers Association. I certainly can't expand on what Mister Brown said. We've been pleased to work with the Administration, the author and the Department on this bill, and we are neutral. Thank you.

Very good. Thank you so much. Anyone else? Neutral? Opposed? Supportive? Seeing no further testimony. We'll bring it back again. The Department of Finance is not here. We'll bring it back to the Committee for any comments, questions, concerns or motions. There is a motion we'll allow you to conclude.

Thank you for the analysis and respectfully ask for your aye vote.

Very good. Please call the roll.

The motion is do pass to the Senate Floor. [Roll call]

Current vote is five to zero. We'll put that on call for the absent members. Moving on to Assembly Member Aguiar-Curry. Thank you for your patience and for being here on time. You were the first one, I think.

I'll be on time caucus.

Yes. AB 20813.

Thank you, Madam Chair. And Members. AB 20813 simply furthers the statutory accountability and transparency measures in ACA one. As you know, my office has worked closely with the chair and her staff since last year to strengthen and ensure that there are sufficient guardrails in AB 2813 for local transparency, fiscal oversight and voter protection. Protection.

Madam Chair, by giving locals the opportunity to work together with their communities on local projects that are critical to their needs, these bills reduce pressure on the state to Fund solutions to local government's urgent housing and infrastructure projects. Respectfully ask for your aye vote. Very good.

Just to make sure you're accepting the amends, I didn't have my notes. Very good testimony in support of the bill.

Thank you, Madam Chair and Senators, Doug Subers, on behalf of the California Professional Firefighters and strong support.

Thank you very much.

Thank you, Madam Chair. Keith Dunn. On behalf of the State Building Construction Trades Council. In support.

Very good. Anyone else in support? Anyone in opposition? Seeing no opposition again, the Department of Finance is not here, so we'll bring it back to the Committee for comments, questions, concerns or a motion. There you go. We have a motion on the bill. Please call the roll. The motion is do pass as amended.

Oh, I always forget the close. I'm moving too fast.

Respectfully ask for your aye vote.

Thank you.

The motion is due. Pass. [Roll Call]

Current vote is five to zero. We'll put that on call for the absent Members.

Thank you very much.

And your second bill is ACA 10.

Thank you, Madam Chair and Members, once again. ACA 10 will remove the special tax provisions in ACA 1. Bonding will be the only new fiscal tool available to locals for affordable housing and public infrastructure projects. Madam Chair, by giving locals the opportunity to work together with their communities on local projects that are critical to their needs, these bills reduce pressure on the state to fund solutions to local governments' urgent housing and infrastructure problems. I respectfully ask for your aye vote.

Very good. Witnesses in support.

Thank you, Madam Chair and Senators. Doug Subers on behalf of the California Professional Firefighters in support.

Thank you.

Thank you, Madam Chair. Keith Dunn on behalf of the State Building Construction Trades Council in support.

Thank you.

Scott Govenar on behalf of the Construction Employers Association in support.

Anyone else in support? Is there anyone here in opposition? Seeing no opposition. Again, the Department of Finance is not here, so we'll bring it back to the committee for questions, concerns, or a motion. Motion by Senator Ashby. We'll allow you to conclude. Yeah, well, it was a ventriloquist kind of situation.

She was just very quiet.

Yeah, you can tell we don't have enough to do.

I respectfully ask for your vote.

Very good. Please call the roll.

The motion is do pass to the Senate Floor. [Roll Call]

Thank you.

The vote is five to zero. We'll put that on call. Thank you very much. And last but not least, Assembly Member McCarty, AB 2927. Welcome.

You're going really fast. I feel like I should talk fast, too.

No, it's all good.

Yeah. So thank you, Madam Chair, I'm here to present this measure related to financial literacy for our high school students. You know, I have high schoolers at home, and I could tell you that when they learn the difference between a debit card and a credit card, they're like, huh, interesting.

You know, when young people go off to college, before they find the bookstore and the library, they'll pass a table, signing up for multiple credit cards.

You know, when they get student loan packages when they're 18, you ask them, you know, when they get financial aid packages from colleges, you ask them, are you getting loans or are you getting grants? Like, I don't know. I'm getting financial aid. Well, those details matter. And so 17 states have already have this throughout our nation.

As far as a graduation requirement for financial literacy, as you know, there is a potential ballot measure on this. We've worked to negotiate with all parties to remove opposition to dramatically lower the implementation costs. And with that, we think we have a measure that does this today.

You know, we listened to some of the concerns from last year and have multiple years of implementation, as well as finding ways how we can make it easier for counselors and students to fit this in their course requirements by allowing this financial personal finance course to be substituted for the economics course upon graduation. Respectfully ask for your.

I vote I have one witness here today. Thank you so much.

Very good.

Madam Chair Members. Joe Lang, representing the Next Generation Financial Literacy Foundation, nonprofit foundation established to help promote financial literacy courses in states around the country. And I think our author described properly, worked with a lot of stakeholders.

I think this bill is a very good product, and we did do our best to try and make sure that the fiscal impact was as Low as possible while still achieving the goal of helping to educate young students about their financial future. So with that, thank you, and we urge your support.

Very good. Test witnesses in support.

Madam Chair and Members, Bob Giro. On behalf of the intuit corporation, we manufacture turbotax, quicken, and Quickbooks. It's our mission to ensure that the public understands and is financially literate, and we support the bill.

Thank you very much. Anyone else in support? Witnesses in opposition? Seeing none, the Department of Finance is not here. Back to the Committee. Senator Wahab moves the bill. Any comments, concerns you may conclude.

Thank you. Respectfully ask your aye vote.

Very good. Please call the roll. The motion is do pass to the Senate Floor. [Roll Call]

Current vote is six to zero. We'll put it on call for the absent Members. So we're going to take a brief recess so we can get the absent Members here so we can go through the roll call once.

The Senate Appropriations Committee will be back in session. And we're going to go through the agenda items one final time. We'll start with item number one, AB 628, by Assembly Member Wilson.

The motion is do pass to the Senate Floor. [Roll Call]

That bill is out, five to one. Moving on to ACA 8 by Assembly Member Wilson. The motion's do pass.

[Roll Call]

That bill is out, five to one. AB 1935, by Assembly Member Blanca Rubio. That the motion is do pass.

[Roll Call]

That bill is out, seven to zero. Moving on to AB 2113 by Assembly Member Garcia. The motion is do pass.

[Roll Call]

That bill is out, five to two, AB 2288 by Assembly Member Kalra. The motion is do pass.

[Roll Call]

That bill is out, seven to zero. AB 20813 by Assembly Member Aguiar-Curry. That the motion is do pass as amended.

[Roll Call]

That bill is out, five to two. Moving on to ACA 10 by Assembly Member Aguiar-Curry. The motion is do pass.

[Roll Call]

That bill is out, five to two. AB 2927 by Assembly Member McCarty. The motion is do pass.

[Roll Call]

That bill is out, seven to zero. That concludes our committee hearing for today. I'd like to thank everyone for participating. We have concluded our agenda and the Senate meeting. The Senate Committee on Appropriation is adjourned.