Assembly Standing Committee on Revenue and Taxation

I want to say good afternoon to each and every one of you. The committee on Revenue and Taxation Committee is called to order, April 7 2025 2:32 in the PM. Advocates, we want to just remind you that to submit your position letter through the Committee's portal; please do that at least one week prior to the hearing in order for your organization's position to be reflected in the bill analysis

Also want to remind everyone that pursuant to the committee rules adopted at our first hearing, we have re-instituted the suspense file. Bills with a revenue impact of 150,000 or more or less will not be eligible for a vote.

Those bills will be automatically sent to our suspense files. So members will be able to still present but if it's plus or minus 150,000, those bills will be referred to our suspense file that we will continue to institute this committee.

This will enable the committee to holistically consider the proposals before us and better prioritize policy changes. Accordingly, every bill on today's agenda will be referred to the suspense file except item number 1 and 4. So those bills will have a vote taking place today. All the other ones will be referred because of its cost will be referred to the suspense file.

We just established a quorum. Madam Chair, would you please call the roll to establish a quorum?

[Roll Call]

Very good. We've established a quorum. We will now move to the first item on the agenda. That's AB 1076 by Assembly woman Addis. Thank you very much and you may proceed when ready. Just want to remind your two primary witnesses you have two minutes each and we'll do the same for any opposition if there be any.

So with that being said, please proceed when ready.

Thank you, Mr. Chair. And I want to thank the committee and staff and advocates today I'm here to present AB 1076 which will strengthen the California Achieving a Better Life Experience or CalABLE program, expanding its reach to empower more individuals with disabilities to save for the future.

CalABLE accounts are tax advantaged savings accounts for people with disabilities that allow them to save $100,000. Account holders can withdraw money tax free without risk of losing means tested public benefits likeSupplemental Security Income. And this will allow members of the disability community to plan for their future and build financial security.

Existing law, however, is unclear as to whether and how the CalABLE board can accept grants, gifts and and other funds from philanthropic entities and legislative appropriations. In addition, many individuals who qualify for CalABLE are not aware of the program and do not realize that they are eligible.

According to one survey from the State Treasurer's Office, only 22.6% of respondents with a disability stated that they were familiar with CalABLE, and less than 30% of nonprofit and healthcare professionals who serve people with disabilities were aware of CalABLE.

So AB 1076 will strengthen CalABLE's reach and ability to support people with disabilities by authorizing the CalABLE Board to do two things. One, accept funds from philanthropic entities and legislative appropriations and two use these funds to encourage eligible individuals to open CalABLE accounts and use them to their maximum potential.

Additionally, this bill will require information about CalABLE to be included in tax return instructions ensuring that qualified individuals are aware of the program. And joining me today are Connie Chan, Legislative Manager for the State Treasurer, and Ann Osborne, Deputy Executive Director at CalABLE.

Thank you very much. Welcome. You have two minutes.

Thank you. Good afternoon, Mr. Chair and Members of the Committee. My name is Connie Chan and I'm here on behalf of California State Treasurer Fiona Ma, who is sponsoring AB 1076 and serves as the Chair of CalABLE Board.

CalABLE is California's savings and investment program for individuals with disabilities, allowing them to save in tax advantaged accounts while protecting their eligibility for benefits like SSI, which more than a million Californians rely on for basic needs such as housing, health care and food.

Historically, individuals receiving SSI were limited to having less than $2,000 in assets which prevented them from saving for emergencies or their future. The federal ABLE act passed in 2014 and we created the ABLE program in California in 2015. Today, CalABLE has over 13,000 accounts with 180 million in assets.

However, this is still less than 1% of the state's eligible disabled population. CalABLE has limited resources for outreach which has hindered its ability to serve more people who could benefit from the program. AB 1076 will help CalABLE by allowing it to solicit philanthropic support to Fund outreach and marketing efforts.

This will help bridge the information gap and reach more individuals who could benefit from the program. This bill also allows CalABLE to share information through state tax returns, increasing awareness and outreach in the same way that ScholarShare 529 college savings plan has done successfully with minimal costs.

AB 1076 is a necessary step to ensure that more individuals with disabilities can access CalABLE and begin saving for their future. I urge you for your aye vote and here with me today is Ann Osborne from CalABLE who's here for technical questions.

Thank you. Great. Thank you very much. Next, we would like to have any witnesses and support. Would you please line up for Assembly Bill 1076? Anyone in the audience for support? Okay. Any primary witnesses in opposition to Assembly Bill 1076? Hearing and seeing none. Okay, we'll bring it back to the Committee.

Thank you very much. It's been properly moved and second. Assemblymember Addis, you may close.

I respectfully ask for your aye vote.

That was correct. Okay, sounds good. Thank you very much. Madam Secretary, please call the roll.

[Roll Call]

Yeah. This bill is do pass to Appropriations five to zero. That bill gets out. So thank you very much.

Thank you.

Next we will have item number three. Hadwick, Assembly Bill 834. I understand you and another member switched up.

Not a problem. We try to accommodate when we can. Thank you very much. And you may proceed, for your witness you have two minutes.

Thank you. Mr. Chair and members, I would first like to thank the chair and committee staff for working with me on this critical issue. As the author of Assembly Bill 834, I'm proud to stand here today advocating for a much needed state tax credit for our teachers to match the federal tax credit of $300.

Teachers across California are spending more and more out of pocket every year to provide the best education for their students. According to the Department of Education, 94% of teachers spent money on classroom supplies, with a mean of $478 spent and a median of $297 spent.

I know this firsthand, having spent hundreds of dollars each month out of my own pocket. Not to mention the significant cost for starting a new school year. With districts working with small supply budgets, any extras, whether it's classroom supplies, coats for students, snacks, holiday party items, they often come out of the teacher's pocket.

And teachers often step up to fill in the gaps for these students, going above and beyond without hesitation. Despite this, teaching is the only profession that isn't allowed to write off those expenses.

When I first filed my taxes as a teacher, I was appalled to learn that I couldn't claim the costs I had incurred to support my students. This is unfair and it's in time that we recognize the contributions that teachers make every single day.

This small tax credit is just one step, but it's a step towards showing our teachers that we see them, we hear them, and we appreciate them. It's long overdue.

And while I believe this amount is still too low, I look forward to working with you all to increase it in the future and continue to invest in our teachers just as they invest in their classrooms and our children. Thank you. And I look forward to working with all of you to support our teachers.

I respectfully ask for your aye vote. And I am joined today by Superintendent Morgan Nugent, representing Fall River Joint Unified School District.

Thank you very much and welcome. You have two minutes.

Thank you, Mr. Chairman and also Committee Members name is Morgan Nugent, Superintendent, Fall River Joint Unified School District in Bernie, California. Also the Director of the Far North Educational Coalition consisting of Siskiu, Lassen, Modoc, Trinity, Shasta. Yes, that should be all of those ones there. 25 years as administrator had an opportunity.

See how much time and energy our teachers pour into our classrooms. A lot of that comes also from their pocketbook as well too. These individuals are buying supplies, supplemental curriculum materials, and are also first ones to be hit for any type of fundraising activities within the schools.

This week alone, over 70,000 FFA students from across the state came over here. Programs that help instill the characteristics that we expect, that we want of our citizens. That comes with a price tag and that comes usually from the pockets of our teachers.

Within a rural community you know those students individually just the same as I've had the experience of being in a school of over 3,500, I've also, as a leader of only school district of around almost 1200 students in any one of those areas. We are the ones who are always going out there and providing these kids those opportunities.

The support of 834 will go ahead and provide that little extra something for our teachers. It doesn't ever meet the full need, but gives a little bit, shows that appreciation that's well deserved of it. As you all know, education is in a crisis. Fewer and fewer educators are coming to us.

Difficulty right now, 22% of my teachers are not even fully credentialed. We have to find a way to go ahead and encourage folks to go ahead and become teachers. The simple process of saying thank you, giving a little something back, makes a world of a difference. And this is just one step. Thank you.

Thank you very much. Anyone in the room wishing to speak in support of AB 834, please line up. State your name, your organization and your position on the bill of support. Hearing none and seeing none. Anyone wishing to speak in opposition. Primary Opposition, please come forward. Hearing and seeing none. I want to bring it to the committee.

Ms. Quirk-Silva, you're up.

I want to thank the author for bringing this forward. And personally, this is real. If you are a classroom teacher or an instructional aide in a classroom or work in education, you know that there are many, many types of expenses that teachers, they volunteer to do this.

But they know that many of these items simply are not covered by the classroom budget. So everything from glue sticks to markers to folders to incentives, little awards that you give students. You know those little stars, stickers, snacks. Many times students need a snack and they're not covered. Costumes for plays, paints, recreation equipment.

Those are just some of the things that I know that I actually chose to pay for for my classroom. And it is not uncommon for every month for a teacher to go to the dollar store, to go to Walmart, Target, wherever they can to buy these things. And it often is between $300 or more monthly, not annually.

So this is a little step to acknowledging that. And I support this and would ask to be author or co author on this bill. Thank you. And I move the bill.

Thank you. This is a suspense item so we will take it up. Yeah. Thank you very much.

But we should just go straight to moving.

Thank you very much. For one bringing and introducing us to 834. I for one used to work for the Teachers Union in LA Unified School District. Know firsthand the sacrifice that teachers make for supplies and just little things that help move education and strengthen education along. Just have a quick question for you.

Do you have any sense of the number of teachers currently taking advantage of the federal deduction that exists right now?

So FTB is doing their analysis and we were given estimates of low millions that this would cost. But that's all the clarity we got. And then after suspense we would get that clarification. So I can get that to you as soon as we have it.

Yes, thank you very, very much. We really appreciate it. And thank you very much your witness for appearing and speaking and testifying on 834. This is a suspense file candidate. Yes. How about closing?

I just respectfully asked for an aye vote. Thank you for the support and the comments and for supporting our teachers.

Sure, absolutely. Again, this is a suspense file candidate and thank you very much. And when we do the suspense file, you'll be notified. Thank you very much.

Thank you.

Next we will ask Mr. Gonzalez, would you please come for the audience edification. Mr. Lee is not here here today, but Mr. Gonzalez has agreed to present on behalf of Mr. Lee, AB 703. And you also have a bill, AB 613. So whichever one you want to take first, we're open to that.

Thank you Mr. Chair.

And proceed when ready.

Thank you, Mr. Chair. Good afternoon Members. Thank you to Mr. Gibson, the Committee staff, for their work on AB613.

It's great to be back in this committee again. As AB613, the Community Owned Real Estate, or CORE ACT, is designed to strengthen local economies by enabling mission driven organizations to acquire and to lease commercial spaces to small businesses and nonprofits at affordable rents. Small businesses in California are facing displacement at an alarming rate.

A recent survey found that 86% of California small businesses and nonprofits report experiencing a threat of displacement. When small businesses are forced to close or relocate, entrepreneurs and workers lose their livelihoods, communities lose access to culturally significant goods and services, and local economies suffer.

And we know that firsthand, especially in my district, fifth poorest district in the states. 70% of this district speaks another language other than English. And we are economically impacted, especially through our culture and diversity, which is changing for folks that can actually afford to pay those commercial rents.

Small businesses displacement, where the businesses are pushed out due to that gentrification and rising costs obviously is not a new issue. However, public awareness of this crisis has grown, particularly in the wake of the COVID 19 pandemic and of course, the recent wildfires.

I don't have to tell you, but that pandemic caused a severe economic impact, permanently closing thousands of small businesses locally and of course, nationwide. Factors such as shifting consumer behavior, inflation, rising rents have only exasperated these challenges and as we're seeing today with tariffs.

In Los Angeles County alone, more than 15,000 businesses closed due simply to the pandemic and over 5,300 fell behind on their rent. To address this issue and support inclusive neighborhood revitalization across California, AB613 incentivizes nonprofit organizations to acquire and own commercial properties, ensuring that micro entrepreneurs, small restaurants and nonprofits have access to stable, affordable lease opportunities.

Specifically, AB613 will recognize affordability restrictions on commercial leases as enforceable for property tax assessment purposes, reducing that tax burden on nonprofit owned commercial properties and preserving affordable lease opportunities for community serving businesses and their organizations.

Today with me to highlight the impacts of CORE or the CORE ACT is Amy Chong, Policy Associate with the Inclusive Action for the City and Rachel Mueller with the California Coalition for Community Investment. Take it away.

Welcome. You have two minutes each. Thank you very much.

Thank you. Good afternoon Chair Gipson and Members of the Committee and staff. My name is Amy Chong, representing Inclusive Action for the City as a proud sponsor of AB613. Inclusive Action is an economic development, community development financial institution based in LA County.

We strive for economic prosperity for low income entrepreneurs and small businesses through access to capital and policy advocacy. We are seeing too many small businesses getting displaced at an alarming rate. Whether it's rising rents, the increased cost of goods and services or the pressures of gentrification, one closed business is one too many.

The small businesses we serve are doing all they can to stay afloat. And when they are forced to close, it's not just a storefront that disappears. It's someone's livelihood, a families stability, local jobs, a neighborhood's cultural fabric. This is where AB613 comes in.

This bill creates a modest incentive for mission driven organizations that are willing to lease commercial space to very small small businesses at below market affordable rent. This spurs economic development and job creation and disinvested low income communities because it helps small businesses stay in business.

AB613 simply updates section 402.1 to include these types of restrictions in the list of similar restrictions that assessors already consider when setting the assessed value. As you walk through the corridors of your district, take a moment to notice how many small businesses have closed their doors since COVID 19.

Now picture the same corridor filled with thriving small businesses employing local residents in spaces owned by mission driven organizations. That's the vision that we share. A community and a future where low income people and immigrants can start their business, create local jobs, invest in historically marginalized communities and grow our local economy.

I strongly urge an aye vote in this committee so we can continue protecting our community, serving small businesses in our neighborhood. Thank you.

Thank you very much. Next witness, two minutes.

That was so lovely. I hope we all keep that image in our minds. Good afternoon. Chair Gipson and Members of the Committee, thank you so much for the opportunity to speak on behalf of AB613. I'm Rachel Mueller with the California Coalition for Community Investment.

CCCI represents more than 50 community development financial institutions of which Inclusive Action is one of our Members. CDFIs are mission driven lenders dedicated to expanding economic opportunity in underserved communities across California. Our members finance affordable housing, small businesses, nonprofit facilities and community infrastructure, often in areas overlooked by traditional financing.

We don't just provide capital, we invest in long term community well being and Wealth Building. One of the most effective ways our members support small businesses and nonprofits is by helping local organizations purchase commercial realty property.

These community led ownership models are powerful tools for preventing displacement, stabilizing neighborhoods and assuring local wealth stays rooted in the community. When a nonprofit owns a building and leases space to a local child care provider, a bakery, an independently immigrant owned independent bookshop at affordable rents, we are providing a public good.

But under current law that public benefit isn't recognized in how these properties are taxed. AB613 would change that. It ensures that affordability restrictions on commercial leases are treated as enforceable restrictions for property tax assessment purposes similar to what we do for other property constraints.

This simple but important shift would lower the tax burden on nonprofit owned commercial properties and expand access to affordable commercial leases for small businesses and nonprofits. It helps us, the CDFI community, do what we do best, provide equitable financing and catalyze community owned assets in low income, immigrant and historically disinvested communities.

AB613 is about making the tax code recognize the value of inclusive economic development. It gives tools to the mission driven organizations working on the ground to protect California's small businesses. We respectfully urge your support. Thank you so much.

Thank you very much. Anyone in the audience wishing to add their support for AB 613, would you please come up, state your name, your organization and your position. This is support only.

Doug Smith on behalf of Inclusive Action and CAMEO in support.

Thank you very much.

Bianca Blomquist on behalf of Small Business Majority in support

Thank you very much. Anyone wishing to oppose 613 please come up and you can take a seat at the table. Yes, if you're a primary witness in opposition to this bill and you have two minutes.

Good afternoon Chair and Members. I am Christina Wynn, the Sacramento County Assessor, and I'm here today on behalf of the California Assessors Association. My apologies. I understand a position paper has been submitted, but it did not make it in on time.

While assessors appreciate the bill's intent to support community serving businesses and nonprofits, the current language lacks clear definitions and introduces complex administrative requirements for assessors, particularly regarding verifying affordable lease terms and eligibility criteria. These ambiguities would significantly burden assessors, leading to inconsistent implementation across jurisdictions, vague and undefined terminology causes considerable confusion among property owners, small businesses, nonprofits, and the broader public.

Without clear guidance, community members could struggle to understand their eligibility for benefits, resulting in unintended inequities and disputes. Clarity and legislative language is crucial not only for administrative efficiency, but also to maintain public trust and transparency.

Assessors respectfully oppose AB613 in its current form, but welcome the opportunity to work closely with the author to enhance the clarity and effectiveness of the bill. Thank you.

Thank you very much. Anyone in the room wishing to speak in opposition to Assembly Bill 613, would you please come to the microphone? Name, organization and position. Okay. Madam County Assessor, there may be questions for you so you can just stay at the table. Thank you very much. Hearing and seeing. Now we bring it back to the committee. Ms. McKinnor.

Thank you, Mr. Chair. Yes. I was just wondering. Did you have an opportunity to discuss this with the author? Did you guys meet and discuss your?

Yes. Yes. We have legislative advocate and a whole legislative Committee and they did meet with the author, according to our legislative advocate. Yes. Did you guys meet with any, anybody from.

Am I allowed to respond? Yes. Thank you. So we did get the chance to meet with some state, county office, County Assessor's office, and we essentially had an agreement that, I mean, we have a common understanding that this Bill was drafted to make sure that we are not adding additional burden to the assessor's office.

That is not the intent, that is not the goal, that is not what we are trying to do. But in particular by directing, we are trying to direct a different local public agency to review and certify the affordability restrictions and eligibility criteria for the entity.

So in the Bill, it has a couple of lists that we had specifically written down. The Bill requires independent certification by the County Council, the city attorney, local economic development agency, so that the assessor, the assessors does not have to. It is not what we are trying to. Trying to do.

Thank you. Thank you very much. Appreciate it. Mr. Gonzalez, you may close.

Thank you, Mr. Chair. Thank you. Members, look. Local small businesses are more than just storefronts. They are the soul of our neighborhoods. They provide jobs, culture and identity. They are where communities gather, where dreams take root, and where opportunity lives. A lot of these small businesses support local schools, PTAs, church groups and many other local sports programs.

We rely heavily, especially on our local small businesses. But despite their critical role, these businesses face growing threats, from rising rents to aggressive development that make it harder for them to stay in communities that they serve.

And unlike affordable housing, there's no property tax incentive for nonprofits whose lease to these vital communities serving businesses at below market rates. AB613 changes that. It offers a thoughtful community first solution, one that helps level the playing field. This Bill promotes equitable growth, supports small businesses, creates jobs and strengthens our neighborhoods without pushing people out.

It's a modest but meaningful step toward a more just economy. One that doesn't just grow, but it grows together. I understand AB613 will be referred to the Committee suspense file. And I look forward to working with Members and the staff in the coming weeks to ensure that this critical measure advances and is assessed properly.

Thank you for your time, your partnership and your shared commitment to building a California that works for everyone. And with that, respectfully, ask for an aye vote.

Thank you very much. Member Gonzalez, appreciate your presentations, your witnesses. Again, this item is a will be referred to our suspense file. But thank your witnesses for coming and appearing and testifying. So thank you very much. For those just entered into the room, item file, item number four, AB703 Lee will be presented by Mr.

Mr. Gonzalez, who will speak in support and on behalf of Mr. Lee. So, Mr. Gonzalez, feel free to commence when ready.

Good afternoon Chair, Members. On behalf of Assembly Member Alex Lee, who is ill today, we send him his well wishes. I'd like to thank the committee for their hard work and thoughtful analysis. And Mr. Lee and I accept the committee's amendments.

I am here today to present AB 703, which will create the Pediatric Cancer Research Voluntary Tax Contribution Fund, allowing taxpayers to allocate a portion of their California state tax return to support childhood cancer research research. Cancer is a leading cause of death by disease for children in the United States.

Each year, an estimated 15,780 children will be diagnosed with cancer, and tragically, one in five will not survive. Those who do survive are often left with chronic and severe conditions as a result of just the treatment alone. Historically, there has not been nearly enough research into the causes and treatments of pediatric cancer.

The largest share of funding for research comes from private industry who do not find that there is enough financial incentive to invest in childhood cancer research at all. In 2023, only 4% of the federal government's cancer research budget was allocated towards pediatric cancer, and California has no dedicated funding stream for research at all.

While significant progress has been made against certain forms of childhood cancer, some childhood cancers have little to no treatment options and remain incurable. This bill, a dedicated funding source for pediatric cancer research and positions for our state. And we will be a leader in childhood cancer research and innovation.

With me today to testify are Sahil Mehta and Rayaan Kolte from Neev Kolte and Brave Ronil Foundation and Tim Gibbs on behalf of the American Cancer Society.

Thank you very much. Two witnesses, two minutes each. So you may proceed when ready. Whoever wants to go first. Bring the microphone a little closer to you. There we go.

Hello, my name is Rayaan Kolte and I'm here in support of AB 703 as the founder of Siblings and Friends Chapter of the Neev Kolte and Brave Ronil Foundation. I'm here for my brother Neev, who passed away just a month after his sixth birthday.

I am a 12 year old in seventh grade attending Hart Middle School in Pleasanton, California. I don't have any memories of my brother and the ones that I do have are very faint. This is because I was eight when he got diagnosed. My parents remind me of what we did together.

I feel very sad that I don't remember him. What I do remember from photos and videos was that Neev was a happy, energetic and mischievous little boy who loved to follow me around. We used to play Minecraft, Legos, run around and watch Pokemon. My brother got diagnosed with cancer at 4. I was devastated.

It was a rare form of brain cancer called DIPG, which has a less than 1% survival rate. My brother battled for 15 months, enduring several surgeries and treatments, including four phase 1 clinical trials that did more harm than good. I clearly remember we had traveled to New York to participate in a phase one clinical trial.

Within just six hours of receiving his medicine, he lost all bodily functions. All he could do was blink his eyes. I was so scared and I did not even understand what was happening to my younger brother who just a day before was running around playing with me.

For the last three years, I've gone to our country's capital with children fighting cancer and their siblings to advocate for national legislation and benefit pediatric cancer research. This showed me how it felt to be heard and gave me a chance to do an annual tour drive and and a lemonade stand.

We do the toy drive every Christmas for the UCSF Children's Hospital. Last year, along with my friends James and Athena, we got five PUSD schools to participate in this toy drive, collecting over 450 toys. And the last three years, that's 1,150 toys for all children receiving treatment.

We also do lemonade stands to raise money specifically for the siblings of kids with cancer who often feel left out because I know how isolating this journey as a sibling can be. Under Sahil's help and mentorship, I worked on the AB 703 bill.

This bill helped fund critical life saving research and possible cures for terminal periodic cancers like DIPG. DIPG has been known since the 1960s and the standard of care still hasn't changed. In fact, Neil Armstrong's daughter got diagnosed with DIPG and he said, how can they send me to the moon but cannot cure my daughter?

How many more decades must go by before the cure for this deadly disease? Thank you for your time.

Well, I just wanted to say going to commend you on your leadership in this space and thank you very much for your testimony. I think you speak for millions of people. My sister passed from cancer, so just wanted to say that and thank you for appearing before this committee. Next witness. Two minutes, please.

Good afternoon. My name is Sahil Mehta. I'm 17 years old, and I'm a junior at Irvington High School in Fremont, California.

I'm testifying in support of AB 703 as the founder of the youth chapter of the Neev Kolte and Brave Ronil Foundation, and as an ambassador for ACS can, but most importantly, as a voice for my older brother Ronald, who passed away from brain cancer six years ago when he was just 14 years old.

When I was eight, my brother Ronald, an energetic seventh grader, was diagnosed with DIPG, a rare and terminal brain tumor. Doctors told us he had less than six months to live, and I watched him go through several hospital stays, surgeries, and experimental treatments. But Ronald never gave up. He fought for 31 months with incredible courage.

Before he passed away, he selflessly chose to donate his tumor to Stanford for research, hoping to spare other families from the pain we faced. During my research, I found that nationally, childhood cancer receives only 4% of federal cancer research funding.

Yet here in California, where over 2,000 children are diagnosed with cancer every year, the state allocates zero towards the cause for rare and deadly brain cancers like DIPG. Their survival rate is less than 1%, and cancer is the leading cause of death by disease in children. These kids are not just numbers.

They are sons, they are daughters, they are sisters, and they are brothers who deserve a chance to grow up. We can't let a lack of funding and prioritization to stand in the way of progress. We have the power and responsibility to change that through this bill which I initiated.

That will allow Californians an easy, voluntary way to contribute to pediatric research, all with the goal of creating a future where no family has to live without their child or sibling.

By passing this bill, California can become the seventh state in the nation to offer a childhood cancer research tax checkup, thus helping pave the way for other states to recognize the urgency of investing in pediatric health.

I urge all of you to support this bill as your aye vote will give families like mine hope and give kids like my brother Ronald a real chance at life. Thank you for your time and consideration.

Thank you very much for your testimony and my heart goes out to you and your family for both of your loss in this space. So thank you very much for your testimony. Next, we want to welcome those in the audience in support. If you could just please state your name, your organization that you represent, and this is support.

Yes, of course. Good afternoon. Jen Chase on behalf of the University of California, in support.

Thank you very much. Anyone else wishing to support 703? Hearing and seeing none--

Chair, Members, Dean Grafilo with Cal-- Pardon me. Dean Grafilo, Capitol Advocacy here on behalf of California Life Sciences, in support of AB 703. Thank you.

Thank you very much. Primary opposition, you have two minutes to please come forward. Anyone wishing to oppose this bill? Seeing none. Anyone in the room wishing to express opposition to Assembly Bill 703, you have the same right. Seeing and hearing none. I want to bring it to the Committee to see if there's any questions. Ms. Quirk-Silva.

I just want to commend both of the speakers. You did an excellent job telling the stories that personally affect you, and those are not easy stories to share and retell, but it is an important bill and I wish you the best of luck and really sorry for the loss of your family members.

Thank you very much. And I understand that the author will be accepting amendments that the committee has outlined. So those are outlined in E and F of the committee analysis report. So thank you very much. You may close.

Although I'm just presenting on behalf of the author and hearing both of you today. Such an inspiration. I know one of you is on spring break and one of you is not, so you're catching up on both homework. But I myself have lost three brothers, so I know how it is to lose a sibling.

So I just appreciate you being here today and expressing your bravery and making sure we get this across the finish line in honor of your brother. And with that, Committee Members, I respectfully ask for an aye vote.

Thank you very much, Mr. Gonzalez, standing in for Mr. Lee on Assembly Bill 703. I want to thank Mr. Lee for bringing this bill before us. This bill is in fact a suspense. No, it's a vote. I'm sorry, I need a motion and a second. So improperly moved and seconded. Madam Secretary, please call the roll.

This is a motion due pass as amended to the Appropriations Committee.

Item number four, AB 703. The motion is due pass as amended to Appropriations. [Roll call] The bill's on call, needs one vote.

The bill's on call. We need one vote. And thank you very much for appearing.

Thank you, Mr. Chair.

Next we see. Ms. Macedo, would you please come. Assembly Member Macedo, would you please come forward and present assembly follow number five. Assembly Bill 1485. And your witness can come forward with you. And your witnesses have two minutes each. And you may proceed when ready. And welcome.

Thank you. Good afternoon, chair and members. Thank you for the opportunity to present my first Bill, AB 1485. Under current law, nonprofit and charitable organizations qualify for tax exemptions when they acquire land for public use, preservation or conservation purposes.

Simultaneously, Native Indian tribes across California are working to reclaim and preserve lands that have deep ancestral, cultural and environmental significance. When land is returned to California's first people for conservation, we should be affording them the same tax treatment that nonprofits receive. And that is exactly what this bill addresses.

AB 1485 closes these gaps by adding federally recognized tribes to the list of entities eligible for the welfare exemption when land is held for conservation. This will exempt land return transactions from the documentary transfer tax when that land is transferred to a tribe for non commercial preservation purposes.

This bill is about fairness and consistency in our tax code. It ensures that tribes engaged in land conservation and stewardship are treated equally under the law. And it removes barriers that stand in the way of cultural and environmental restoration.

We plan on amending the bill while it is on suspense to ensure compliance with the chair's policies, including Section 41 compliance and a five year sunset. I respectfully ask your support of AB 1485 and I'm pleased to be joined by my two expert witnesses.

Michelle Lee, a tribal attorney who can speak to what this bill would mean for tribes and answer any technical questions, and Benjamin Clark, tribal chairman of Mooretown Rancheria, who will speak to what this bill will mean for native tribes. Like this. Like his. Let me turn it over to Michelle.

Thank you very much. We just have two minutes each.

Thank you. Good afternoon, committee and Chair Gibson. My name is Michelle Lee and I'm an attorney for Mooretown Rancheria. I'm here today to talk about land return. You know, we hear about land backed tribes reacquiring their land and it's a wonderful thing that has been encouraged by the state.

But unfortunately there's a hidden problem in the transaction process and that is that tribes are often paying for far above the market value for the land that they're reacquiring because the owners of the land know that the tribe finds it the most valuable, more valuable than anyone else, and they'll pay more for it.

And unfortunately, tribes do pay a higher price for land when they're reacquiring their homelands. And so that creates a stepped up tax basis. When you have an increased purchase price and a reappraisal, it increases the tax base. So the tribe would be paying much more than the original landowner is paying.

And one new effort with the state is to encourage tribes to reacquire the land so that we can conserve it and protect it and also create fire resiliency in our particularly rural communities. And so there are grant programs to encourage tribes to reacquire their lands.

And often those grant programs have restrictions that tribes cannot develop those lands and they must maintain them in conservation uses. And tribes are willing to do that. They want to reacquire and steward their lands. However, giving up development rights and paying a higher purchase price and a higher tax basis seems unfair to us.

And so we're really appreciative of Assemblywoman Macedo to bring forward this Bill with us so that we can right this wrong. One of the. As you know, the welfare exemption already exists and it's used by nonprofits and hospitals and schools to create a lower tax, create a tax exemption for those entities.

And so what we would be asking is that tribes be also included in the list of entities that could be exempt from a tax for property tax under the welfare exemption. So the welfare exemption does require two parts. It's where you have the appropriate entity and the appropriate use of the land.

And here the bill would create tribes as an appropriate entity because they are charitable entities for tax purposes. So the federal Internal Revenue Code defines tribes as non taxable charitable entities.

And so AB 1485 would incorporate that into the process of the welfare exemption so that tribes would be on the same level as a nonprofit for purposes of property tax exemption under the welfare exemption. So we ask for your support today.

Thank you very much. Next witness, two minutes.

Good afternoon, Chairman Gibson and honorable committee members. Thank you for the opportunity to provide testimony on AB 1485. I would like to express my gratitude also to Assembly Member Macedo here for sponsoring and introducing the legislation. I present this testimony in my official capacity as the Chairman of the Mooretown Rancheria of Maidu Indians.

We are descendants of the Northwestern Maidu stewards of the Mooretown Ridge between the Middle Fork and the South Fork of the Feather River. When gold was discovered in 1848, many settlers swarmed into the territory. The gold rush resulted in organized massacres in our area and hydraulic mining permanently damaging our lands and the environment.

Reservations were established and my people were forcibly moved out of our ancestral lands. Many died or were killed along the way to distant places.

Beginning in 1862, settlers claimed the now vacant land under provision of the Homestead Act, which entitled all adult male citizens to to 160 acres of land just by residing on the said land and filing a claim California Indians were not eligible to request homestead since the law dictated that we were not citizens of the United States.

Our original rancheria was acquired for us in 1894 in the Feather Falls area. Most of the terrain of the 80 acre parcel was rough and so we lived on about eight acres of that and did farming and other things to get by.

Our tribe was terminated by Congress in 1958 and the tribe's trust land was transferred back into fee status. This place, the former rancheria land in Feather Falls area into fee. In 1983, our tribe was restored as a result of the Tilly hard work litigation.

It wasn't until 1992, with the purchase of nearly 35 acres just south of Oroville that my tribe was able to meaningfully begin to rebuild our homeland. Since then we have constructed nearly 100 homes, a community center, tribal library, daycare and a preschool. We have been reacquiring our aboriginal lands.

However, it often requires us to pay higher, higher taxes as these. These. As Michelle mentioned, the land is sold to us at a higher rate because we're a tribe and they know that it's. We have. It has value to us. Unfortunately. Oh, sorry.

And so again, like nonprofits, churches, schools can already apply for the welfare exemption for properties that are limited to certain, certain uses. This bill would allow more town rancheria to utilize the same welfare exemptions for lands acquired for stewardship purposes programs such as the Tribal Nature Based Solutions Grant Program. California's efforts to return tribal land.

My tribe has sought to utilize such program. We are working now to finalize a land acquisition project. However, the grant agreement requires us to keep the land undeveloped. Despite this restriction, we are still required to pay higher state and local property taxes after the acquisition.

AB 1485 is a necessary step in providing financial relief for tribal land stewardship which also benefits the surrounding local community and advances California policies goals. AB 1485 is a common sense extension of an exemption that already exists under the law and is a step in the right direction for California as it seeks to address historical wrongs.

I hope you join me in supporting and advocating for the adoption of AB 1485. Thank you for your consideration and for allowing me this testimony.

Thank you very much, Mr. Chairman. Appreciate it. Anyone in the audience wishing to support the bill 1585, would you please come up? State your name, organization and your position. This is support only.

Hi, this is Constance Hovez on behalf of the Yurok tribe in support.

Thank you very much.

Hi, Pilar Onate-Quintana here for the Barona Band of Mission Indians in support.

Thank you.

Good afternoon. Alex Alanis, on behalf of the Habematolel Pomo of Upper Lake and the Viejas Band of Kumeyaay Indians. Thank you.

Good afternoon. Christina Wynn, Sacramento County Assessor, on behalf of the California Assessors Association in support of this bill.

Thank you very much. Any primary witnesses in opposition, would you please come forward and take a seat at the table? Please come forward. Oh, were you coming to to speak in opposition as primary? Oh, okay. Saw your hand go that way. Okay, thank you. Anyone in the room wishing to oppose the Bill 1485?

Would you please come to the microphone. State your name. Organization and this is opposition hearing and seeing none. Bring it back to the members. Anyone would. Oh, just you and I.

It's a small committee, but I want to acknowledge the author for bringing forward this important bill. We know that making sure that we can acquire back land here in the state of California and that those tribes are not penalized for it is an important step. So I support this at the time we can make a vote.

Thank you very much. I just have one quick question. How would the federally recognized Indian tribes comply with the general requirement for the welfare exemption?

So the welfare exemption is a process and some tribes may not want to do it because it is a process where first you go to the Board of Equalization and you get verified as an entity eligible for the exemption.

And in that process, that's why the language actually includes tribally chartered entities as well, because a tribe may want to create a land trust under tribal law and have the land trust apply for the exemption so that there can be the ongoing reporting and audit requirement or not audit, but reporting requirements because it's a biannual application.

So they may have their land trust apply for the welfare exemption. And once the Board of Equalization authorizes that them as a tribal as an appropriate entity, then the assessor determines if the land is used in the appropriate way. And that would be that second part. So that's how the tribes would comply with the welfare exemption.

It would be great if we could just get it an exemption when the tribes are purchasing land back and they're not going to develop it. But unfortunately the Legislature doesn't have the power to do that. That would require a vote of the people.

Well, thank you very much for that explanation and appreciate both your witnesses for coming forward in support of this measure. Member Macedo, you may close.

I just want to say it's such an honor and this is truly exciting. This is my first testimony or bill that I have in front of a committee so thank you, Mr.

Chair, and thank you to our Chairman from Mooretown and also to Michelle for all of the hard work on this very necessary bill and we humbly ask for your support.

Thank you very much. This bill will refer to the suspense file and then we will take our suspense files at a later date. But thank you all for appearing. Appreciate it.

The Chair is going to take prerogative just to move some things around. We understand there's a willingness to wait for one of our members. So we're going to skip to file number 7 AB895. Rubio. Thank you very much. Please take a seat and your witnesses. Thank you very much for.

Thank you, Mr. Chairman.

You may proceed.

Thank you Mr. Chair and Members for allowing me to present AB895. AB895 directly addresses the financial pressures facing family owned quick service restaurants by providing targeted tax relief. Up to $12,000 in credits per qualifying restaurant. This credit helps offset rising workers compensation insurance costs and other operational expenses.

As we have all seen, the 25% increase of the minimum wage for fast food workers has significantly raised operational costs. As a. As a result, many businesses are reducing employee hours, increasing menu prices and in some cases closing locations altogether.

A study by the Berkeley Research Group found that menu prices have risen by 14.5% in California, nearly double the national average of 8.2%. With 62% of those increased costs passed on to consumers.

The tax credit would be available to franchises and independent fast food restaurants operators with no more than 45 locations in California, ensuring the relief is focused on small and mid sized business owners. Owners.

Before I conclude and hand it off to our witnesses, I would like to note we will amend this measure's findings to reflect increased cost of workers compensation tax rather than Unemployment Insurance since higher payroll is directed directly linked to workers compensation premiums.

With me today in support of the bill is Brett Gladfelty representing the California alliance of Family Owned Businesses. Thank you.

Great. Thank you very much. Mr. Gladfelty, you have two minutes. You see. Thank you.

Great. Thank you. Good afternoon, Mr. Chair. Members Brett Gladfelty with Gladfelty Government Relations. On behalf of the California alliance of family owned businesses. K Fob we're proud sponsors of AB895. I'd like to thank Assemblymember Rubio for her leadership and the Committee staff for their thoughtful analysis. K Pop is a coalition of family owned and operated Mcdonald's franchisees.

These are small business owners rooted in your communities who are attempting to live the American dream. AB 895 proposes a $12,000 tax credit per qualified fast food restaurant starting in 2026 through 2030. Why?

Because the fast food industry in California has been disproportionately hit by skyrocketing costs, with workers compensation expenses alone increasing by an average of $12,000 per location.

As noted in the Committee analysis, a recent Berkeley Research Group report found that between June 2023 and June 2024, California lost 10,700 quick service restaurant jobs, the steepest drop since the Great Recession. And COVID 19. Much of these increase cost increase trace back to AB 1228 by Assemblymember Holden, which significantly increased labor costs.

Though the Committee analysis refers to it in AB 1228 as a negotiated compromise. The voices of thousands of franchisee operators, including our Members, were intentionally left out of that deal. K FOB represents thousands of struggling quick service restaurants. They're immigrants, they're entrepreneurs, they're job creators. They are Members of your community.

Unfortunately, they had to reduce hours, raise prices and halt expansion just to keep the doors open. AB895 is about fairness and affordability.

When the state mandates a labor cost increase of over 25% literally overnight on April 1st of last year, it doesn't just shift the numbers on the balance sheet for our Members where labor already accounts for a third of operating costs, it forced immediate and painful decisions. This credit is not a handout. It's a lifeline.

A targeted, reasonable approach to help family owned restaurants to simply stay open and retain workers. We respectfully ask for your support on AB 895 at the appropriate time. Thank you.

Thank you very much, Nick.

Thank you. I also have Matt Sutton from the Restaurant Association.

Thank you very much. Thank you. Mr. Chair and Members, Matt Sutton with the California Restaurant Association. And we thank the Assembly woman for continued leadership on this issue. For sure. This is an absolutely enormous policy experiment that's underway. The idea of increasing the minimum wage overnight for $4 for this group of restaurants.

So it's very much underway in terms of the impacts. We can all debate the different studies, but one thing we know is that operators are reducing hours. Jobs are being lost. This is an attempt at trying to mitigate those losses and try to stabilize that segment of the industry.

The restaurant industry at large has never been under such duress. With all of the issues we're facing coming out of the pandemic. This group in particular could use any relief they can get. And again in many cases these are neighborhood franchisees. These are neighborhood restaurants that are employing local people.

This is self executing in the sense that you only get the tax credit when you have a job on the line actually being performed. So this is good policy and it helps offset the costs that the state frankly has imposed on this group of restaurants. For that reason, we'd ask for your support. Thank you.

Thank you very much. Chair, witnesses, any wit anyone in the room wishing to speak in support support of this bill, please come forward. AB 895. I need your name, your organization's name as well as your position.

This is support, support only. Good afternoon Committee Members. My name is Harris Liu. I am a family owned business franchisee right here in Sacramento. Just celebrated our 25th year here in. Sacramento with our first location. And I'll tell you for as a. Fact that we just went through a. Year of AB 1228 and we had.

To reduce our hours by about 6700 hours per restaurant. So I respectfully support ask you to support the bill as stated.

Thank you very much. Congratulations on your anniversary. Anyone else in a room wishing to support AB895? Seeing none. Anyone primary witness in opposition to this bill, Would you please come forward? Hearing and seeing none. Anyone in the room wishing to speak in opposition to 895 seeing none. Bring it back to Committee. Okay.

We have a number of Members in committees. They'll be coming back to vote. So I will give the author an opportunity to close. This is a suspense. Candidates want you to be aware of that and you may close.

Thank you. I respectfully ask for an aye vote at the appropriate time.

Thank you. Thank you very much for appearing. Thank you to your witnesses. We will this Bill AB 895 will be moved to the suspense file. Thank you. Mr. Rodriguez or Mr. T.

She. She's waiting for Ms. B. Okay. Unless she has changed her. You want me to ask her?

Yeah. One still wait for. Okay, sure.

Okay, Ms. Rodriguez, thank you very much. You have filed item number 6, AB 1057, and file item order. You may proceed when ready.

Okay, thank you, Chair and Members. First responders are the backbone of our emergency response efforts. They work long hours and run towards a danger while we all run away to safety. The wildfires this year have shown us all just how much our first responders answered the call of duty.

They work mandatory overtime with no days off, missing their families. And some of the first responders are mothers. AB 1057, or the heroes Overtime Relief act, seeks to provide our first responders with the necessary thanks on behalf of all Californians, but also a common sense approach to help first responders during a crisis.

This legislation proposes a tax exemption on overtime wages for qualified first responders who serve during an officially declared State of emergency. Recognizing their extraordinary sacrifices with a five year sunset, AB 1057 provides essential financial relief to those who risk everything to keep California safe. Here with me to testify is Brad Sherman. Brian Sherman. Sorry.

Brian Sherman, thank you very much. You have two minutes. Thank you, Mr. Chair. Members Ryan Sherman with Riverside Sheriff Association. And the other POAS and DSAS listed. In our late letter that was submitted. To the Committee in support. And just like to echo the comments. Of the Assembly Member and thank her for bringing this measure forward.

Thank you very much. Anyone in the room wishing to Support Assembly Bill 1057, please line up. State your name. Organization? Seeing none. Any primary opposition, please come forward. Hearing and seeing none. Bring it back to Committee. You may close.

I would like to thank Brian for his leadership and the Committee staff for their dedication to make this legislation better. And thank you. I respectfully asked for an I vote.

Thank you. Thank you very much, Ms. Rodriguez. For 1057. This bill will refer to the suspense file and it will be heard at a later date. Thank you very much.

Thank you.

Next we have Mr. Tangipa. Would you please come forward? We have File item number 8. AB 1431. And you may proceed when ready. And your witness has two minutes.

All right. Hopefully I can be as smooth as Michelle. Wait. One sip of test. You're the next. Zero, yeah. So I'll be back.

Okay. AB 1431. File item number eight.

We gotta double up for you again. All right. Ready to roll? Yep. All right, perfect. Mr. Chair and Members, first I want to thank the Committee staff and their thoughtful and diligent work on the analysis. We will be willing to work on amendments to address all of the concerns on the analysis.

And so I'm here to present a Bill that aims to improve health care access to some of the most underserved parts of our state, our rural communities. This bill will provide a tax credit of up to 5,000 per year for medical professionals who provide services in rural areas of California.

The credit will be available for tax years beginning in 2025 through 2031. We know that Medi Cal reimbursement rates simply aren't enough to support a sustainable medical practice in rural areas. Providers are often losing money to serve these communities. As a result, many choose not to practice there at all.

This leaves large parts of our state with very few health care options. Unfortunately, year after year, we run into significant challenges trying to raise those reimbursement rates to a level that would actually encourage rural medical practice. We're not giving up on that fight, but we also need to get creative and look for new, targeted solutions.

This tax credit is one of those solutions. Right now, rural communities are struggling to attract and retain doctors. That means residents are driving hours or waiting months just to see a provider. This burden falls especially hard on Low income families and seniors who may not have the ability to travel far for care.

This Bill offers a practical, fiscally responsible incentive to bring more providers into those communities. It's not a silver bullet, but it is a meaningful step that gives us another tool to address the crisis. We can't allow geography to determine whether someone gets the care that they need. This Bill helps level the playing field.

Here to testify in support are Chris Zagreggin, cool last name on behalf of Children's Choice Dental Care, and Peter Kellison on behalf of Pediatric Day Health Care Coalition.

You may proceed and you have two minutes. Thank you.

Yes, thank you very much, Mr. Chair and Members, Chris Scroggin with Capital Advocacy on behalf of Children's Choice Dental Care. First, we want to thank Assembly Member Tangipa for cool last name too for introducing this important measure.

As the author stated, it is incredibly difficult to attract medical professionals to rural areas of the state and this negatively impacts those communities. This is not just a problem that's isolated to the medical care. It's also something that touches dental care as well.

Children's Choice is dedicated to providing high quality dental care throughout the state, and since 2008, they were founded in Sacramento. In 2008, they have expanded to 28 locations and annually they see 382,000 pediatrics visits, 86% of which are children who are covered under Medi Cal dental.

Historically, rural parts of the state have had a hard time attracting medical professionals and in order for us to open up new clinics, we must be able to secure a dentist at each location. And that can be incredibly challenging.

In addition, we've seen that more and more children are identifying as having some sort of special need, which increases the need for sedation services and, and that increases the need for the demand for anesthesiologists to perform this work as well.

AB 1431 is a thoughtful approach that encourages medical professionals to come to rural areas of the state and provide much needed care. And creating a tax credit for medical professionals who work in rural areas will help incentivize them to come to rural California. Ultimately, this will provide greater access to care and better health outcomes for patients.

So we encourage your support of AB 1431.

Thank you very much. Next witness, two minutes, please. Mr. Chair and Members, Peter Kelliston, on behalf of the Pediatric Day Healthcare Coalition. Pediatric day health care Centers. There's only 23 in the state, but they provide a very unique niche level of care to the most vulnerable children in California. These are medically fragile children.

And medically fragile doesn't begin to describe the complexity of care these children need. We're talking ventilator dependent feeding tubes, the most severe developmental disabilities, children that cannot live without nursing supervision, around the clock therapy care. And without it, they would be living in hospitals or facing repeat hospitalization. The 23 centers are on the cusp of fiscal challenges.

They're not on the cusp, they've been on the cusp. The first one closed two years ago and they were slated for a medi Cal increase rate increase that was last year that was eliminated by Proposition 35. So they are in a very difficult place.

And part of the problem that they have is retaining qualified staff in rural areas. And so anything that's going to attract more caregivers that might be able to work in these centers who are caring for these children is something they're happy to support.

Thank you very much. Anyone in the room wishing to speak in support of 1431. Your name, your organization, and this is support.

Hey, chair and Members, Jennifer Tannehill with Erin Reed and Associates on behalf of the California Dental Hygienists Association. This is a severe problem getting treatment for these patients. And a lot of our registered dental hygienists in alternative practice provide care in these areas and to patients that lack access and then also in areas that lack access.

So we're in full support and thank you.

Thank you very much. Name, organization and support.

Yes. Good afternoon, Chairman Gibson, Committee Members. My name is Esin Katir and I'm representing the First Valley Medical Group, a organization with 10 clinics in rural areas in Antelope Valley and we support AB 1431. Thank you very much.

Ryan Spencer on behalf of the California Podiatric Medical Association and the California Radiological Association in support. Thank thank you. Kevin Usman with the California Medical Association and support.

Thank you very much. Primary opposition to Assembly Bill 1431. Would you please come forward? Hearing and seeing none. Anyone in the room wishing to oppose 1431 hearing and seeing none, want to bring it back to the Committee. Any questions about the Committee? Hearing and seeing none. Thank you very much, Mr.

Tangy Paw, for bringing this bill for us before us today. We will ask that you close right now.

Well, thank you and thank you all to hear me present this bill.

I think this is something that we need to do to make sure that we're also taking care of some of our rural communities and especially a lot of the ones that I have in my district just looking and asking for doctors and medical providers to being there. And so I respectfully ask for your I vote.

Thank you very much. This bill will refer to the suspense file. Thank you very much for your witnesses for appearing and testifying in support of this Bill. Thank you very much. Next up, we will have your next Bill. Item number file, item number nine. AB 1481 immigration tax.

You may proceed when ready. All right, Mr. Chair and Members, I want to start off by saying again, thank you for the Committee staff for their work and we will be willing to work on amendments that really address the concerns in the analysis.

I stand before you today not just as an author of AB 1481, but as somebody who has lived through the very challenges this bill seeks to address. When I sponsored my mother's immigration from Tonga to the United States, I experienced firsthand the financial burden that comes with the immigration process.

Like so many families, I face the cost, the paperwork, the uncertainty, and in pursuit of the ability to be with our loved ones and have them take pride in being an American citizen representing the Central Valley, I see every day the vital role that immigrants play in shaping California's economy, culture and communities.

From doctors and lawyers to farm workers that feed our nation, immigrants are at the heart of our community. No one should have to choose between financial stability and legal immigration. The I130 petition, the form that allows U.S. citizens and lawful permanent residents to sponsor their relatives, is one of the most filed immigration forms.

For many, the cost is a serious barrier. AB 1481 provides a solution by offering a state income tax credit for the I130 filing fee, which ranges between $625 and $675, we can ease the financial strain and reaffirm our commitment to family unity. We often talk about the values of fairness, opportunity and family here in California.

Here is our chance to turn those words into action. Supporting 1481 means supporting family unity with economic stability while working through the legal immigration process. Here with me today to testify and support is Isan Kater, National Programs Director with the Hindu American Foundation.

Thank you very much and welcome. You have two minutes.

Thank you. Thank you. Good afternoon. Chair Gipson, all the Committee Members. My name is Isan Kater. I serve as the National Program Director for the Hindu American Foundation. We're a 22 year old national advocacy and educational group and a voice for the 3 million-plus Hindu Americans in America, more than half a million who live in California.

I ask for your support for AB 1481 on behalf of the Hindu American community. The vast majority of Hindu Americans in California are immigrants and come from a diverse array of countries including India, Bangladesh, Sri Lanka, Nepal, Bhutan, Fiji and others. My own wife is an immigrant from Sri Lanka and has gone through this citizenship process.

As you know, the family unit, including both immediate and extended relatives is a cornerstone for Hindu Americans. As with many other immigrant communities, family Members provide social, cultural, spiritual, emotional and financial support to one another and to help new immigrants integrate into American society.

According to the American Immigration Council, extended immigrant families quote, ease the economic assimilation of new immigrants and promote investment in the US Human capital as well as the formation of businesses. For many years, the Hindu Americans have relied on this family based immigration system to bring their loved ones to the US and keep their families together.

That's why AB 1481 is such a crucial piece of legislation to support the family based immigration that spurs our economy, promotes inclusiveness while ensuring the path to citizenship doesn't become a financial burden for the many immigrants who call California home. I ask for your support. Thank you.

Thank you very much. We'll ask. Anyone in the room wishing to speak in support of 1481, would you please come forward? State your name, organization and your position. Support. Seeing none. Any primary witnesses in opposition to 1481? Seeing and hearing none. Anyone in the room wishing to speak in opposition to this measure, please come forward.

Hearing and seeing none. We bring it back to the Committee. Any Member wishing to speak? Hearing and seeing none. Just one question for the author. Are you planning on amending the bill to comply with Section 41 of the Revenue and Taxation Code?

Yeah. I believe we are speaking with a lot of the staff to take those amendments and that way make sure that we are in full compliance.

Great. Thank you very much. And you may close.

All right. Well, thank you all for allowing me to present this bill and I respectfully ask for your I vote.

Thank you very much. This bill is referred to our suspense file. We thank you very much for being here and appreciate you doing so. And to your witness. Thank you very much.

Thank you.

We can.

Let me open. Yeah. I want to have to call on Assembly Bill 703.

703, item 4.

Madam Secretary, please call the roll to.

[Roll call]

That Bill is out. AB 703. We'll open the road for absentmind Members to add on to item number one. AB 1076.

Call the absentees.

Call the absentees here.

Baines on item number one. AB 1076 all. There you go.

That bill is out. Now we'll be switching roles.

Okay. Yeah. Good.

Thank you. Chair Gibson, please begin when you are ready.

Thank you very much. Thank you very much. Thank you for allowing me to present Assembly Bill 245 today. Assembly Bill 245 provides an immediate and lasting property tax relief to victims of the 2025 Los Angeles wildfire. As you all know and aware, a series of fires began raging in early January throughout Los Angeles County.

At that time, hurricane forces, winds and drought conditions created an environment that causes severe complications for our first responders to get to this environment led to a numerous ablazes that surrounded Los Angeles County. As the true devastation of these fires came to light. We have gained a greater insight into the extent of this destruction.

According to the report published by the UCLA Anderson forecast, total property and capital loss resulted from the fire could and I want to underscore could range from $76 billion to $131 billion. The report also estimated the county level Gross Domestic Product decline of $4.6 billion which is devastating. The level of loss is unprecedented in our state.

The campfire which leveled towns like paradise horrific blaze but was ordered on the magnitude less than the 2025 Los Angeles fire causing an estimated loss of under $17 billion. Do not misunderstand. This was all fires are devastating to our state as well as to the victims who suffered great loss within these fires.

But I do want to be honest about the extent of this devastation and provide a concrete understanding of of what counties are facing right now in response to the catastrophic fires.

I have coordinated on a daily basis literally with Los Angeles County Assessor Jeffrey praying to better understand the difficulties and experience by the victims of the Los Angeles fire. AB245 is a result of those conversations.

And those discussions we have come up with two proposals that would speak to the relief that's necessary For Assembly Bill 245 the Los Angeles wildfire fires.

The extent is relatively straightforward and I just want to underscore that this work was done also for victims of the camp and Woozy fire when the Legislature authorized and the Governor signed into Law Assembly Bill 15. There are two components I would like to bring up that speaks to the essence of Assembly Bill 245.

The first one is the first provisions that grants a fire victim an additional three years to rebuild their homes or business given the owners eight years in total.

By providing more time to rebuild we are giving those who may be Low income the same same opportunity to retain their base year value and prevent their prevent from being harmed by circumstances beyond their control. The Revenue Taxation Code excuse me.

The second provision of Assembly Bill 245 provides and ensures those and gives authority to the assessor to have them to reevaluate and making sure they don't receive any a tax Bill during this time of calamity and disaster, especially around the 2025 reassessment for the property tax Bill.

The Revenue taxation code Section 170 currently provides that the owners of the property suffered damage or destructions from misfortune and calamity may apply within 12 months of the qualifying event for for the reassessment of their property.

As an assessor may also provide a notice to the owner when the assessors determine that a property has been damaged in the past year but the owner must respond to this notice to receive the reassessment.

And essentially what this Bill does, this second portion is allow those individuals who are dealing with the calamity, who are dealing with the misfortune to make sure they don't miss a crucial date. It gives the assessor the ability to file on their behalf the necessary papers. And that is absolutely important.

So AB again, 245 ensures victims of the Los Angeles fire not to be penalized by any delay as of 01-01-2025 lien date. It will be done automatically without the authorizations.

Property owners may be penalized simply because they they could not timely respond to the notice by the assessor as those individuals are dealing with the climate, the calamity and the misfortune and caused by the fires. With me to provide a supporting testimony, I'm happy to say, is the Sacramento County Assessor, Ms. Christine Wynn.

Thank you very much for appearing.

Thank you. Good afternoon, Chair and Members. Christina Wynn, Sacramento County Assessor on behalf of Jeff Prang, Los Angeles County Assessor and the California Assessors Association, you should have received our position letter for AB245. Letter of support AB245 is critical legislation providing property tax relief to property owners severely impacted by the devastating 2025 wildfires.

AB 245 addresses a critical gap by extending the current five year rebuild deadline by an additional three years, allowing effective property owners the essential time needed to rebuild without losing vital tax benefits. Secondarily, without this bill, properties in the dam located in the damaged fire damage, communities that are suffering from external obsolescence.

In other words, loss in property value caused by factors outside the property itself, such as environmental, social or economic conditions, will not receive any property tax relief this year. AB245 provides needed relief for disaster affected communities. We urge your support for this important Bill. Thank you.

Thank you. And do we have any others that are here in support?

Good afternoon. Amy Garrett on behalf of California Association Of Realtors in strong support of this measure. Thank you.

Good afternoon. Tobias Wolkin with the California Taxpayers Association in support.

Thank you. And do we have any primary witnesses in opposition? Seeing none. Do we have anybody who would like to speak speak in opposition? Seeing none. We will bring it back so you may close.

Thank you very much. Madam Chair, thank you very much for giving me the opportunity to present Assembly Bill 245 again.

Just want to stress that we have certainly had numerous of telephone calls with our Los Angeles County Assessor's Office who has been guiding us with looking at what's transpired in the past with other fires and to making sure that we get it right this time. People are hurting. They're trying to rebuild their lives.

And I think this is a sensible approach that we as a state government can provide for those individuals suffered suffering by these wildfires. I want to also underscore that my own family has been impacted by the fires of the Eaton fire in Los Angeles County area.

My cousin who's a Grammy winner, she lost all of her Grammy awards, her baby grand piano and all she had was the shirt on her back during this particular time. This would help provide some kind of comfort to individuals when it comes down to their taxes. And I respectfully ask when I vote at the appropriate time.

Thank you. And without objection, this bill will be referred to our suspense file. But we appreciate you bringing this. We know this could add some certainty and very difficult times for the fire victims. Thank you so much. Thank you.

Thank you.

Want to thank Member Quirk-Silva for stepping in and convening in my absent while I present. I think that's all the business before the Revenue Taxation Committee. This Committee stands adjourned.