Assembly Standing Committee on Governmental Organization

Good afternoon. We'll go ahead and get the. The Governmental Organization Committee hearing started at 1:30pm can you call Members, please? We'll go ahead and get started. When we have quorum, we'll call, call the roll and do our consent calendar. And we have.

Thank you for being here on time, Assembly Member Ashkara on AB268, if you can come up and I know Assembly Member Patel is co author and for each Bill heard today, there will be an opportunity for two witnesses in support and two witnesses in opposition to each provide two minutes of testimony. Okay, thank you. You may get started.

Okay. Thank you so much, Madam Chair. It's a privilege to be here with my joint author, Assembly Member Patel. Particularly as the first two Hindu Americans to ever serve in the Legislature. It's an honor to present AB 268, which would add Diwali as an official state holiday in California.

Diwali, a festival of great significance to Indian Americans and South Asian Americans and is celebrated annually by Hindus, Sikhs, Buddhists and Jains of all ethnic backgrounds throughout the United States and across the globe.

The exact date of the valley is determined by the 15th day day of the month of Karthick in the Hindu lunar calendar of each year. Generally speaking, it tends to be towards the end of October or early November.

Similar to other recently enacted state holidays, AB268 also allows for public schools to elect to close in recognition of Diwali and allow state workers to elect to take the day off as one of their personal holidays. Even though California often leads in its diversity, we are not the first state to recognize the valley and its state laws.

Last year, Pennsylvania became the first state to officially recognize Di Valley as a state holiday. New York requires public schools in the City of New York to be closed on Diwali as a school holiday. Other states are also considering similar recognitions through state measures, including Massachusetts, Nevada, Illinois and Connecticut.

California is home to the largest population of Indian Americans, many of whom come together for Diwali to celebrate the religious and historical significance and participate in festivities throughout the state. I certainly have fond memories of celebrating Di Volley with my family as a child growing up here in California.

And what started as small gatherings at home, which still continue to this day, have also been supplemented by wonderful cultural celebrations throughout our community, celebrated by a wide diaspora of the South Asian community.

I'm grateful, as mentioned, to be joined with my colleague, Assembly woman Darshana Patel, who is a joint author on AB268 here to provide additional testimony. And after Assembly Member Patel speaks we have with us Rajvi Patel, a young San Jose resident, in support of AB268 and I'm assuming no relation.

Thank you Assemblymember Kalra. We're all related somehow. Thank you Madam Chair and Committee Members for hearing our testimony today in support of AB 268. Just telling a little narrative. 2016 was a very exciting year for me, and not just because that was when I first ran for and won my position on the POWI Unified Board of Education.

But it was also the year that the United States Postal Service introduced the Diwali stamp. Finally, I would have the chance to put our holiday stamp on my annual Family Diwali letter that I mailed out to my family and friends every year. And how did this family's tradition start?

Well, as the daughter of Indian immigrants, I know how important it is to follow the meaningful traditions, and these are the threads that we use to weave the tapestry of identity, purpose and meaning in our daily lives.

Growing up, we looked forward to celebrating the holiday leading up to Diwali, even though our Indian community was very small at the time. In the community I lived in, I loved making traditional sweets with my mom, with recipes that were generations old, receiving gifts of new clothing and books, and reflecting on the meaning of the holiday.

It was a time when we could be celebrating in community together with a community I felt deeply connected to.

However, the unfortunate truth was that while I was joyful at home, it was very difficult for me to explain to my friends, teachers, and even for my parents to explain to their colleagues at work the meaning of the holiday and its significance. Fast forward to today.

I'm thrilled to be sitting next to Assemblymember Kolra as joint author introducing AB268. This Bill reflects the broader truth. California is home to one of the largest and most vibrant South Asian communities in the nation.

Hindus, Sikhs, Jains and Buddhists across our state celebrate Diwali each year, and we're seeing an increasing number of other community Members celebrating with us in lighting the holy lamps. By acknowledging this holiday, we are affirming that our experiences, our faiths, and that our contributions matter.

And while Diwali comes from a specific tradition, its message is actually quite universal and ancient. It's good triumphing over evil, light overcoming darkness, and the enduring power of community, resilience and hope. These are actually all California values. These are all human values.

Let's ensure that all Californians see themselves reflected in our state's holiday calendar in our culture, not just for our generation, but for the many Generations to come. I respectfully ask for your. I vote today on AB268. Thank you.

Thank you. You may begin. You have two minutes.

Sorry. Good afternoon, Chair Rubio and Members of the governmental organization. My name is Rajvi Patel, and I'm honored to sit before you today. As proud Hindu from San Jose, I am in strong support of Assembly Bill 268. Why not Diwali? This is the question I repeatedly asked myself growing up in California.

Every year, I would eagerly watch the ball drop on December 31st. And as the sky lit up with fireworks, I would be reminded of the fireworks I lit during Diwali. A celebration just as grand, just as meaningful, yet so often overlooked. California is a beacon of diversity.

It's a place where cultures, traditions and communities come together to shape the very fabric of our society. And yet, for so many Hindu Americans like myself, Diwali, one of the most sacred and cherished festivals of our culture, has never received the recognition it truly deserves as a holiday.

Every year, I celebrate Diwali at the BAPS temples in Milpitas and Chino Hills, where I get to volunteer, I get to mentor young Hindu Americans, and I get to share my heritage with the broader community. Just last November, I had the honor of celebrating Diwali at the State Capitol with many of you here today.

Together, we embrace the essence of Diwali, which is light over darkness, hope over despair. And in times like these, when so many immigrant communities feel unseen and afraid, that message has never mattered more. So by recognizing Diwali, you're not only honoring the holiday itself, but you're honoring the hundreds and thousands of Hindu Americans that call California home.

And so this is your opportunity to say yes to representation, to inclusion, and to a California that reflects its people. So I ask you, honorable Members of the Committee, why not Diwali? I urge your vote for AB268. Thank you.

Thank you very much. Is there any Members of the audience that wish to support. Come up and support the bill.

Thank you. Thank you, Madam Chair and Members of the Committee. Keshav Kumar with Lighthouse Public Affairs here on behalf of myself today, as an Indian American and practicing Hindu, I am one of the few, but one of the proud part of the third House that is very supportive of this bill.

Thank you so much for considering it and deep gratitude to the co authors.

Thank you.

Hi. Thank you for having me today. I'm Seema Patel. I'm from Livermore, California, and also a Member of BAPS Social Spiritual Organization. And I am in strong support of this bill as well.

Thank you.

Hi, good afternoon. I'm Sangeeta Shankar and I serve as a California regional Director for the Hindu American Foundation. We are a 501c3 bipartisan nonprofit that advocates and educates for the rights and representation of Hindu Americans. I'm also here as a proud Californian, an Indian American, and a Hindu American who resides in Rancho Cordova here in Sacramento County.

I joyfully support AV268. And thank you very much, Ash Kalra. Assemblyman Ash Kalra and Assemblywoman Darshana Patel. I'm also here representing Buddhists, six Jains, and pretty much everyone who celebrates Diwali. Thank you.

Thank you. Any others in support? Okay. Any Members in opposition? Okay. Hearing none. Questions from the Committee? Okay, Hearing none. You may close.

I just want to thank the chair and the Members for your consideration. Respectfully ask for an aye vote.

Thank you. We don't have a quorum, so as soon as it's appropriate, we'll go ahead and move. Move the Bill. Thank you and thank you for the Bill. Assembly Member Mark Gonzalez, if you're ready, Mr. Gonzalez. Assembly Member. Thank you. Assembly Member, you may begin. zero, no worries. No worries.

Thank you. Thank you. Madam Chair and Members, I am pleased to present AB770 which will clarify and codify the term customary maintenance for all outdoor advertising display.

The definition of customary maintenance would include the replacement of structural components such as post or bracings and the reinforcement of improvement of existing structures while keeping or reducing the number of posts. The term customary maintenance has never been caught defined in law before, which leaves room for regulatory agencies to give varying interpretations of their own.

AB 770 will ensure that there is consistency in the industry and in enforcement. Here to testify in support of the bill is Luis, Vice President of Legislative affairs at Bulletin Displays.

Thank you. You may begin.

Good afternoon, honorable chair, Members of the Committee. My name is Luis Gerardo Cuellar. I'm the Vice President of Legislative affairs for Bulletin Displays and I'm here on behalf of the California State Outdoor Advertising Association in support of AB770, authored by the honorable Assembly Member Mark Gonzalez. This Bill for us, the. The most important thing is safety.

What we need as an industry is a clear definition of what customary maintenance is so that we can continue to keep our workers and our communities safe. We have union Members up there working on our signs. We have our own family.

I come from a family company of four generations who has their own people up there working on these signs every day. And it's important to us that we're able to keep those employees safe. Being able to work on these signs, maintain them throughout the year so that they continue to stay strong is very important to us.

We have to deal with different regulations and for example, changing from the Uniform Building Code to the International Building Code or at times we have new regulations coming from from OSHA that we need to comply with.

And it's very important that we are able to and understand exactly what customary maintenance is so that we can maintain these signs as as someone in local office. It is a responsibility to keep our community safe, not only our residents, but the people who come and work in our communities.

So this Bill would allow us allow the industry to continue maintaining those billboards, keeping a safe community and ensure the public safety of again our communities and the workers who work on these signs. So I respectfully ask for your I vote for Assembly Bill 770.

Thank you. Any Members in the audience in support? Okay, seeing none. Is anyone in opposition of the bill? Okay, seeing none. Bringing back up to the Committee any questions. Assembly Member Gipson, thank you very much.

Madam Chair. I want to ask the author if he would graciously allow me to be a co author of this bill.

I think this is and to the councilman, thank you very much for presenting this bill and acting as a witness is something safety is important for everyone, not only for our community, but also for the employees that work in this particular space.

And I happen to know the owner and the great work that he does and the great work that employees provide to our community. So I would again to the author would like to be a co author of the bill. And thank you both for appearing.

Thank you. Any other Members?

I was at the appropriate time I would like to move the bill. When we have a quorum.

We have actually stopping and established quorum. Can you we need 12. Madam Secretary, can you call the roll so we can establish quorum?

[Roll call]

Okay, we have quorum and then assemble. Member Gipson, you wanted to make a motion?

Yes, I would like to move the bill. Second.

I have a motion by Assembly Member Gipson. Second by Assembly Member Gonzalez. And you may close.

Thank you Madam Chair. And thank you to my colleague from Carson for proudly co authoring this which I'm sure we will add you but more importantly, thank you to the Committee for listening. Thank you to our witness.

And this is a very simple approach to red tape that exists, but more importantly, keeping our workers safe, but making sure that our communities also are maintained and also look good for our community to get advertisers, which look. Which keeps the dollars local to our local cities as well.

So thank you so much, and I respectfully ask for your. I vote. Thank you.

Thank you. Madam Secretary, can you please call the roll?

[Roll call]

Okay, we have 11 votes. We still are short one. And we'll leave the roll open for added Members. Thank you. Thank you.

Madam Chair, is it proper to make a quick comment? Yes. Just want to acknowledge the test. The person that testified, he's also a Council Member in my City of Linwood, who actually replaced me when I left the City Council recently. So I just want to acknowledge him for being here. Thank you.

Congratulations. Thank you.

Thank you.

Okay, next we have Assembly Member Koza.

Assemblymember Coloza, you may begin. Awesome. Thank you. Chair Rubio and colleagues. I would like to start by accepting the Committee amendments to AB783. AB783 is about lowering the cost of rebuilding after a disaster, an urgent and growing concern for many of our communities and constituents.

Californians live with floods, fires, earthquakes, atmospheric storms and more natural disasters every year, all of which can cause immense damage to our property, our infrastructure, and most importantly, our people.

The bill aims to make essential construction materials more affordable and accessible for people working to rebuild after a disaster, helping families, nonprofits and local governments rebuild faster and more affordably.

AB 783 would authorize the Department of General Services to negotiate and enter into contracts on a bid or negotiated basis for construction materials commonly used in residential structures that may include price discounts, rebates, refunds, or other strategies aimed at lowering the cost of these materials.

These materials will be offered at cost or with minimal administrative fees to homeowners, contractors, nonprofits and and local governments in disaster declared areas. The bill would require that the materials only be used for recovery efforts that are directly linked to housing losses caused by a declared State of emergency.

Like the Re Eaton and Palisades fires, communities devastated by disasters often face significant financial barriers to rebuilding, including high construction costs and limited access to essential materials in the aftermath of major disasters. Timely rebuilding is essential to restoring communities and helping residents return to their lives and homes.

However, high construction costs and limited access to affordable building materials can cause delay in rebuilding efforts, and the recent wildfires and severe flooding across the state have highlighted the need for a more cost effective approach to rebuilding homes and businesses.

Federal tariffs, including those on Canadian lumber and proposed tariffs on materials from Mexico and Canada have already driven up construction costs. According to a report from the San Francisco Chronicle, the recent fires in Los Angeles County devastated over 12,000 structures, exacerbating high material prices in the construction industry.

The surge in demand for construction materials is anticipated to drive up costs by by 15 to 30%. I believe that in order to come up with the best plan to rebuild, we need to work together and I'm committed to working with all the stakeholders to address any of their concerns.

Our communities cannot rebuild alone and they need our help in government to overcome barriers standing between them and returning to their home. With me here today is to provide testimony is Allie Sapirman, advocacy and Policy manager with the Housing Action Coalition.

Thank you. And I'm sorry. Saperman. Yes. Yep. Two minutes.

Good afternoon, madam.

There we go. Good afternoon, madam. Chair and Committee Members, My Name is Ali Saperman, Advocacy and Policy Manager of the Housing Action Coalition, or HACC for short. HACC is a Member supported statewide organization that advocates for building more infill homes at all levels of affordability in order to address the housing shortage, displacement and affordability crisis.

Our Members span across the building industry from market rate developers, affordable housing developers, architects, land use attorneys and labor unions. I am here today as a Proud supporter of AB783. There are many barriers to building much needed new housing when the state is not facing a disaster.

California faces frequent and severe natural disasters including wildfires, earthquakes and floods which can destroy thousands of homes in a matter of hours. The aftermath of these disasters place immense pressure on the affected communities to rebuild quickly and efficiently.

However, rebuilding efforts are often delayed due to high construction costs and limited access to affordable materials, leaving families displaced for extended periods. The high cost of rebuilding exacerbates housing instability, particularly for lower income and vulnerable populations. AB783 will help reduce the financial barriers to rebuilding help helping families return to their homes sooner.

The Bill ensures a more efficient, equitable and cost effective approach for disaster recovery. Supporting this Bill is a critical step in strengthening California's ability to rebuild communities swiftly and affordability and affordably after disasters.

On behalf of the Housing Action Coalition, I urge you to support AB783 to address barriers to disaster recovery by making essential construction materials more affordable and accessible for those impacted by declared disasters. Thank you.

Thank you. Are there any other witnesses in support or anyone in the audience in support?

Good afternoon Madam Chair and Members. Karim Driesy on behalf of the California Building Industry Association. Our position is still pending, but just wanted to say we appreciate the author's intent with the bill and are grateful for her leadership in this space. Thank you so much.

Thank you. Anyone else in support? Okay. Any Members in the audience in opposition? Okay. Seeing none. Any questions from the dais? Assembly Member DEO and then Assembly Member Dixon.

Thank you. I appreciate your your forward thinking on this because when you can buy in bulk, it's a smart idea. However, as I indicated to the author the other day in 2007 when we had our wildland fire disaster with the witch fire in San Diego. In my district, we lost 2600 homes.

Someone came up with a smart idea. I was not on the City Council at that point to enter into a bulk debris clearing contract and negotiate a package rate and it looked like a great idea and a lot of the residents appreciated it.

But then because the City of San Diego failed to properly manage the contract, it Ended up creating a substantial cost overrun. We then got into litigation with a contractor, and after years of haggling back and forth, there was a slight discount returned to taxpayers. But everyone looks back and said, great idea, really bad execution.

The author is exactly right with what outcome you're seeking here. But my concern is, can the State of California adequately manage this sort of contract and this responsibility? Because if the answer is no, then what is a good idea? It might turn out to be a nightmare and disaster for taxpayers.

So what internal controls and protections can we put into place? And maybe before we authorize the program, maybe we should have it studied, a feasibility study to see if there can be a proper contracting authority put in place with oversight. Any, any thoughts on that issue?

Yes. Thank you so much for your question. I appreciate your thoughts when we discussed this Bill earlier this week. You know, for me, the intent behind this Bill, as you mentioned, is one to really rethink what role government can play during a disaster.

And right now, we need to use all the tools in the toolbox to really lower the cost of rebuilding, especially for communities impacted by a disaster.

The reason why this Bill is tasking DGS to, to be the lead agency here is because it's already the state's centralized procurement agency, and it does this work already through the procurement work that it does for all of us at the state level to negotiate prices.

And so has it purchased construction materials in this manner? Because I understand DGS is our state contracting agency, but this is a new role for government to be going out and buying timber and drywall and, you know, variety of other construction materials. Where would we store these materials?

So some of the language, if I can just clarify, is some of the things that we're trying to clarify in this Bill so that DGS can negotiate the price of these construction materials and not be responsible for storing and being liable for some of these materials. It's to be negotiator for the cost of these building materials.

To answer your question about what accountability measures are in place, that's a top concern for me, as I know it is for everybody. There is language in the bill about transparency requirements, ensuring that there is a report back to our body, the Legislature, on how the program is being implemented.

One of the things that the Committee has recommended, since this is a new role for DGs and government to play, is also to include a sunset provision of five years. And those are amendments that I mentioned in my early remarks that I was accepting.

And so for me, I'm very committed to working with the Building industry with dgs, with all of you learning from things that happened in San Diego, on the implementation, on the details, on how we can look at this and see how we can really see if this is something that the government is able to do.

But right now, given the disasters that Los Angeles is facing and also all the disasters that are happening across the state that may not get as much attention as what happened in the Palisades. And Ian, it's incumbent on us to really look at how do we lower the cost of rebuilding.

And this is a place that we haven't yet looked at.

And so it is a big idea, but it's one that I'm committed to seeing through with all of our partners and would love to lean on you to see what you learned in San Diego and what the City of San Diego learned so that we can really implement this bill to its intent.

So I think that again, the idea is brilliant. I think it's a good thing that we should be engaging in. And considering, I don't think though the prescription right now is it's very government centric.

One of the things that the Federal Government has been very successful with is something called the Mobis schedule, the GSA schedule, where agencies can do bulk procurement.

And maybe what we, we look at here is instead of DGS actually buying the material, directly storing the material, negotiating, maybe what they do is they provide a, a bulk purchase price.

And again, a lot of what your bill is doing seems to be anticipating that they're actually going to be the purchaser and the storage, the entity that then people can go and buy from as a middleman that might set them up for failure.

And so maybe if we ask DGs, how would you design a program to mitigate risk and then come back so that then we don't put all these details into the bill that might be a more flexible approach.

Get the, get the best contracting minds on this and have them look at other examples and then have them come back rather than us saying you're going to do the work, you're going to buy the materials, you're going to store the materials, you're going to resell the materials, that might set them up for failures.

So again, a great idea. I think this is something we totally should be examining, but it may be overly prescriptive at this point.

Yes, no, I just to reiterate the intent of the bill is for DGS be the bulk purchaser to negotiate the price down, not to hold the construction material. So that's language that we're clarifying in the bill as we speak.

So, you know, fingers crossed this bill moves out of Committee the next time you see it, that language will be clarified because I completely hear you and agree with the concerns that are being raised and that was not the intent. So we're working to clarify that language.

Thank you. And then also, just for clarification, it's double referred to emergency management. And I think that's an opportunity also to make those clarifications and work with all of the stakeholders to make sure that this is done correctly, because I agree it is a big idea, but I think we have to start somewhere.

So I really appreciate that. Any other Members of the Committee, before we continue, can. Can we. Because we have consent calendars, can we re-establish quorum and pass the consent calendar? And then we'll continue with. Thank you.

[Roll call]

Wallace. Okay, thank you. And then we'll go ahead and take up the consent calendar. Motion by Assembly Member Dixon. zero, okay. Okay. Motion by Assembly Member Soria. Second by Assembly Member Pacheco. Can you call the role on the consent calendar, please?

[Roll call]

Consent calendar is out. And we'll leave the roll open for additional Members. We will continue with Assembly Member Colossa and Assemblymember Dixon. You had questions?

Yes, please. Thank you. Chair, I do think that the issue, the core issue of problem you're trying to solve is certainly an important one. I do disagree perhaps with my colleague also from San Diego, that I think this is a marketplace solution and not just to be make that so simple.

It's just that when the government interferes in the private marketplace, I don't think it ends well. I think we could all know numerous examples. I think perhaps an alternative idea would be to put this in. Have the contract with several different wholesale suppliers. If the state is competing with private industry, that's not good.

The state's competing with local companies who are providing building materials. But there's a consortium of the building industry who could work together with the state and through the GSA and be the supplier. They can manage the contracts through private industry for the government to be in the business of procure, setting prices and at cost.

So that's competing with the private marketplace. Whenever the government competes, then it wipes out the marketplace. I don't think the government is the last solution here. They are the best. But flip it over and have GSA administer requests for proposals for a competitive process. Make a competition.

That's the hallmark of our economic system for one or two or three or they specialize. Some people do lumber, some people do bathroom faucets. I don't know, but just break it into pieces that can be easily managed and speed up the efficiency.

I don't know if the government is known for efficiency, but certainly private industry with a competitive impetus would speed up the process. So I just have an unpleasant feeling of having the government involved in something that's procuring materials, storing materials, making sure materials get delivered to the right place. That's not their job, that's not their car expertise.

But private industry can do it well. Get them involved. They can find the solutions and keep the prices low. Which is your ultimate objective? Getting the buildings built, the housing built at the lowest possible price? The government is not motivated to operate at the lowest possible price, in my opinion. But anyway, I commend your idea.

It can be managed, but through private industry.

Thank you for your comments, Assemblymember. Just to clarify, again, the intent of the Bill is not to have the Department store materials, but to negotiate prices for bulk purchasing to lower the cost for our most vulnerable impacted by disasters all across the state.

And then the second clarification that I just wanted to add is that the Bill says may and not shall and so GSD may do this. We want to see whether or not this is something that is possible.

So it is not a mandate or we're merely giving them the authority to see if this is something that is feasible. And so I did just want to clarify that, but I would love to meet with you and your team afterward.

I know you've done a lot of work, work in the space to see how we can further strengthen this Bill. And to get your thoughts on anything else in the Bill that you would like to see addressed.

Zero, I'd be happy to. And thank you for that invitation. I will. I just think when the government is setting prices, it doesn't end well. And it's not good for the government to set prices against private industry. And through competition we could get the lowest price. But I'm happy and fine about storage or what have you.

I just would like to see a competitive process. And I don't know if the Department even to, in my opinion, even to look into this. You're going to spend six months of the government looking into it when the need is.

Now, I'd say if you, I bet if you turn this over to private industry and it could be managed through GSA to say let me get your request for proposals in in the next 30 days, I bet the line would be out the door for companies willing to supply the various materials and take care of the storage as well.

But anyway, I'll talk to you. That's fine. We'll do it offline. I appreciate it. Thank you. Assembly Member.

Thank you, Assembly Member Soria.

Thank you. Just to the author, I want to thank you for bringing something thinking outside the box.

And I think it is important that as communities are faced with the tragedy of trying to rebuild that the State of California does everything they can to especially help some of the smaller cities or communities that are in desperate need of trying to rebuild as fast as possible.

I think that this is a great Bill to help us look at helping these local communities, these nonprofits that are trying to help rebuild, you know, the homes that were essentially, you know, now are gone in these communities. And so I'm excited to be able to support the Bill today. Obviously, it's the first hearing.

I am very confident that the language will, you know, will be worked on to ensure that, you know, some of the concerns I think that were raised, which I think are valid concerns that are addressed in this legislative process. But I do want to thank you for bringing this Bill forward and I'm happy to support it.

Thank you. Any other Assemblymember Gipson.

I would first of all thank the author for bringing this bill forward and align my comments with the previous speaker and also Mr. DeMaio because I think brilliant ideals is taking the words that he said, brilliant ideals should move forward. And I think this is a out of the box kind of thinking kind of bill.

We need to act now and we need to look at every way that we can help those who've been victims of this fire, but those who've been hurting or who has been hurting and who is hurting right now in this particular space and people are looking to us to provide that kind of leadership.

And I think this bill represents that kind of leadership. It also, I quote, it represents brilliancy. And I think that we should do everything we can to help this bill one out of Committee, but also supported in the next Committee as. As well.

With this bill being double referred, I think you have an opportunity to work and you've heard from other Members on this dais suggestions. You can take those comments back and see how you can work these comments into something that's workable. But I believe in your vision, you have brought me into this vision.

I'm glad that we're moving the the the vote. If it wasn't already moved, I would have moved it because it's a brilliant idea. I said it. Brilliant. How many times I say that. Okay. And I thought Mr. Maya was going to move it because it was a brilliant idea. Thank you very much.

Thank you. Any other comments? No. Thank you, Assembly Member Koza. You may close.

Thank you all for your comments. I genuinely appreciate it. I said it's a, it's a big idea, but it's one that I want to work on with all of you. And so I look forward to hopefully getting and earning your support. So I respectfully ask for your. I vote. Thank you.

Thank you, Assemblymember Coloza and welcome to your first go hearing. I'm supporting this bill with the amendment, but again, just to clarify, the bill is double referred to the Committee of Emergency Management Services and I look forward. I know that you're committed to this and look forward to seeing how it develops through the process. Really appreciate that.

And we do have a motion and a second Madam Secretary can call you the roll.

[Roll call]

Okay. We'll leave the role open for absent Members. Thank you. And we'll continue the conversation. Thank you.

Thank you, Chairwoman and Committee.

Let's see. I see Assembly Members. Stephanie, if you can come up. Thank you welcome, Assemblymember Stephanie. You may begin.

Madam Chair and Members, Today I'm presenting AB381, the Human Trafficking Procurement Prevention Act. This bill would prevent human trafficking and forced labor at the source by updating the state's outdated public procurement rules. Forced labor continues to plague supply chains and industries.

From 2022 to 2023, California spent almost $19 billion on purchasing and contracts and is known to procure goods that are at high risk of being produced with human trafficking, forced labor, and child labor. However, the state has not updated its procurement policies since 2007.

This bill aligns state law with federal standards set forth in 2016 that adopt more detailed guidance for businesses to prevent human trafficking and mitigate exploitation.

Specifically, this bill creates clear definitions of human trafficking and forced labor, provides guidance on prohibited actions that involve fraud and misinterpretation for government contractors and subcontractors, mandates certification of compliance plans by government contractors and subcontractors, and outlines procedures for companies to follow if they identify trafficking or forced labor in supply chains.

With me today I have Professor Stephanie Richard with the Sunita Jain Anti Trafficking Institute who will be testifying in support of the bill.

Good afternoon. My name is Professor Richard and I'm here today as the sponsor of AB381. I'm also the Director of the Sunita Jane Anti Trafficking Initiative at Loyola Law School. SJI is a practitioner led, survivor informed think tank that promotes policies that prevent trafficking before it starts.

AB381 is a chance for California to lead in preventing trafficking both here in our own backyard and in our global supply chains. We can leverage our almost $20 million of purchasing power to provide additional guidance to companies on steps they're required to take to ensure trafficking and forced labor are not involved in California goods.

The legislative language in AB381 may look complex, but it mirrors existing federal law and is designed to harmonize California's $20 billion procurement budget with consistent anti trafficking standards. Federally, consistent standards is always good for business and good for workers.

Further, since the federal measures have been in place for over eight years, implementation should be easy as language can actually be cut and pasted into new California government contracts. And companies that already receive federal contracts should be in compliance.

Yet we can leverage our own purchasing power here in California and reinforce and create additional support for companies to engage in best practices known to prevent human trafficking. So what exactly does AB831,381 do?

California has prohibited slavery and forced labor in our procurement policies, but it provided no guidance to companies or business for the steps they can take to prevent it. And therefore we had no way of ensuring that our own goods were not made with slave labor.

So AB381 provides this very clear, explicit guidance by clearly defining specific policies and procedures a company must have in place for itself and its subcontractors. AB381 also requires that companies take immediate corrective action if they know or should have known that trafficking was existing in their supply chains.

The law is designed to help businesses correct the abuse for workers, which is good for California, good for workers and good for business. It's not designed to cancel contracts, but to encourage corrective practices globally.

SGI has researched of California's current contracts and we identified almost 4,000 current contracts that are made with high risk goods for forced labor and child labors. These include things like uniforms, garments, electronics and materials made and raw materials in electronics.

The time is now for California to stand against the global exploitation of migrants and migrants here in our states. And I urge you to both co author and vote I for AB 381.

Thank you.

Thank you. Any other Members of the audience in support?

Thank you. Good afternoon, Madam Chair, Members. Dylan Elliott on behalf of the Board of Supervisors for the City and County of San Francisco in support. Thank you.

Thank you.

Good afternoon, Chair and Members. JP Hanna on behalf of the California Nurses Association in support. Thank you.

Okay, seeing no others. Any Members of the audience in opposition? Okay, seeing none. I'll bring it back up to the Committee. Any questions? Do you have a question, Assembly Member.

DeMayo, for this Bill? Have we. Well, let me ask the question. From a basic standpoint, nothing. Would anything in this Bill prohibit an entity from contracting with another entity that uses prison labor? Have we exempted clearly prison labor?

This Bill mirrors federal standards for the last eight years. And as we know, we have allow prison labor both federally and in California. So there should be no impact.

So this Bill would not classify prison work products to be forced labor.

Correct. Because of our constitutional standards.

Okay, thank you.

Thank you. Any other questions? Okay. Assembly Member Stephanie, you may close.

Thank you. Madam Chair, I respectfully asked for an I vote.

Thank you. And we have a motion and a second. Madam Secretary, can you call the roll, please?

[Roll calll]

Thank you. That Bill is out, but we'll leave the roll open for Members to add on. Thank you, Assemblymember Lowenthal. Thank you for being so patient.

Thank you. You may begin. And your witnesses have two minutes.

Well, thank you, Madam Chair and Members. I'm sorry. Pleased to present AB 668. This is a bill that seeks to address the ongoing issue of drink spiking, commonly known as roofing. Roofing refers to the unsolicited drugging of someone's drink. While this on its own is a horrible act, we know that is rarely an independent crime.

Rather, it's done to enable the perpetrator to more easily commit further horrific acts such as rape and sexual assault.

As many of you know, I have worked extensively in this space over the past few years, including presenting to this very Committee, and have introduced a number of bills to address this often underreported epidemic, all of which have received unanimous bipartisan support and all of which have been signed by our Governor.

What this Bill does is it takes the preventative measures that have previously been applied to type 48 licensed establishments, so those are bars and nightclubs, by pass legislation and now extends those very protections to California's large music festivals.

Specifically, AB 668 ensures that these music festivals have and display the availability of drink spiking test strips and drink lids for patrons if they request them, only if they request them.

And also establishes reporting requirements for the unfortunate event that a person has had their drink spiked in order to ensure that they get the help that they need and do not fall victim to the further crimes that too often follow. So why music festivals?

Music festivals and other large outdoor events create an extraordinarily chaotic environment for alcohol sales and drug use. As it is, the massive crowds, the constant loud music, the endless distractions makes it nearly impossible to remain vigilant of everything that's happening around you at all times.

It is when people are distracted that they're the most vulnerable to being roofied. These simple measures will provide a level of security to further ensure the safety of the participants of the many festivals that take place here in California.

Further, it will allow peace of mind for our festival goers to better enjoy themselves, knowing that there are steps to be taken to prevent them from being unwillingly drugged and taken advantage of. And of course, that's good for business. I want to thank the many stakeholders that have engaged with myself and my office on this important issue.

I want to make clear that I do not intend this Bill to be onerous to our fantastic music festival operators. I do not want this Bill to harm business. In fact, I want them to do better. I understand how important and enshrined these vibrant and highly anticipated events have become in California's culture.

I'm confident that we all have the same goal for festival goers to feel safe and actually be safe. I look forward to continuing the work with all these groups to ensure that we achieve this goal.

And today I'm pleased to be joined by Raul Verdugo of Alcohol justice and Sacramento State student Cassandra Real, who are here to testify and support.

Thank you.

Good afternoon, Madam Chair and Committee Members. My name is Ronald Verdugo, Director of Advocacy of Alcohol Justice. I'm speaking today on behalf of the California Alcohol Policy Alliance. We support Assemblymember Josh Lowenthal's AB668. While drinking. While drink spiking, awareness increases among young young adults, with many having witnessed or experienced it.

Many occurrences go under reported, with nearly 90% of victims failing to mention the assault. This underreporting is often due to a victim's reluctance stemming from fear, stigma and or shame. We commend Assemblymember Lowenthal's effort to acknowledge this problem and seek to create law that recognizes, validates and upholds a victim's right to justice.

We ask that the Committee Members of the Assembly recognize the importance of your support for AB668. Your decision will play a critical role in addressing and addressing this pressing issue. Thank you very much.

Thank you.

Hi. Thank you, Madam Chair and Members. My name is Cassandra Riel. I'm a junior at Sacramento State University and the President of Planned Parenthood Generation Action. Studies show that between 5 and 25% of adults have been the victim of drink spiking.

So when you look around a room like this, you can only assume that most people have been the victim. I myself have unfortunately been on the receiving end of drink spiking, and for me, it happened in Sacramento. I am sadly not alone in this experience.

Multiple of my friends and classmates have also been the victim of drink spiking. Individuals who fall victim to this are in danger of being sexually assaulted and taken advantage of. This is a constant fear. Anytime going out for myself and individuals, and yet this is a crime no one seems to be talking about.

No one seems to think this is a real issue. But take it from me, it's very real. So to go somewhere and to see that not only this issue is being acknowledged, but real steps are being taken to keep us safe means a great deal.

People deserve to be able to go out to bars, restaurants, nightclubs with the peace of mind to fully enjoy themselves. And right now that is not the case. Measures like this take us one Step closer.

In my role at SAC State, I educate and raise awareness about the dangers of roofing and the best practices to take to hopefully prevent it. But that is not enough. It feels great to know that I am not alone this mission and I hope you could support this Bill as well. Thank you.

Thank you. Any Members in the audience and support.

Good afternoon, Madam Chair and Committee. I'm Robert Lipton. Dr. Robert Lipton. I'm the Director of Research and Development for Alcohol Justice. And we support this bill because it's a really easy, relatively extension of what we're already doing in the state. And these party zone situations can be.

Vast and it doesn't take much on the part of the vendors and the people putting these kinds of events on to do this kind of thing, more or less. It's not onerous and it also increases safety. Just to be clear, the figures cited.

Thank you. Your name, position please.

Robert Lipton.

Thank you.

Hi, good afternoon. Fred Jones, California Council on Alcohol Problems and support.

Thank you. Any Members of the audience in opposition? Thank you. You have two minutes.

There we go.

Thank you. Madam Chair and Members. Samantha Corbin. On behalf of the National Independent Venue Association of California, representing over 500 independently owned and operated music venues and festival promoters across the state, we're here today respectfully in an oppose unless amended position on AB668. Before I speak on behalf of our Members, I want to acknowledge the bill's intent.

Some of you may know me from my advocacy around harassment, abuse and retaliation in the workplace. I've also experienced my own drink being spiked at a bar. So I don't take this issue lightly. I take it personally. And it's so important that we get this issue correct that I volunteered on behalf of our coalition to speak today.

The desire to make spaces safer, especially for women, queer folks and other vulnerable communities, is not only justified, it's urgent. And I know that that's where this Bill comes from. From a place of deep concern and compassion that we share wholeheartedly. We also know how critical it is to ensure that well intended measures are workable.

And as currently drafted, the measure poses real challenges for small and mid sized venues and festivals that are the heartbeat of California's creative economy.

From the Kasbah in San Diego to the Troubadour in La, to iconic festivals like Outside Lands and Aftershock, our Members have made major investments in harm reduction, safety protocols, partnerships with local agencies and staff training. They are not resisting safety, they are leading on it.

In fact, festivals and music venues are fundamentally different than bars they are sprawling, complex ecosystems with thousands of guests, multiple beverage types and vendors, sustainability requirements, and layered public safety partnerships. The idea that someone could speak, spike a drink, and successfully escort someone undetected off of grounds through extensive security, medical and staff checkpoints is logistically difficult.

Even still, our Members are consistently improving and innovating around harm reduction. As written, we have three concerns. The test strip mandate. The Bill currently lacks sufficient clarity on what constitutes sufficient supply, leaving organizers vulnerable to enforcement. Ms.

Corbin, can you wrap it up, please?

Absolutely. In terms of drink cover requirements, the one size fits all mandate does not work in a festival environment and can even be in violation with contractual writers to protect artists. On the whole, the cost burden leaves us with the question of not whether we can comply, but whether we can survive doing so.

We offer ourselves as partners to work together on alternatives, but for now, respectfully maintain an opposed and less amended position. Thank you.

Thank you. Any other Members in the audience in opposition? Okay, seeing none. I'll bring it back up to the Committee. Assemblymember Gipson.

Thank you very much to the author. I know that you've been one working. Extremely hard on this for many years. Since you've gotten to the Legislature and. Commend you also as a business owner in this space and seeing firsthand the roofing that went on. And I believe it was this Committee.

That I shared my own personal experience. About my cousin dying as a result of being roofied at a bar. And so any measures that you have. Taken to help secure a safe environment so that people and patrons can go and be entertained in these spaces certainly. Has my full support.

And Madam Chair, I would like to move the Bill.

Thank you. Any other com. Any other comments from the Committee? Assembly Member McKinnor?

Yes, I'd like to thank the author for bringing this Bill and I'd also like to thank the young lady for coming out and telling your story. Just like you one time, many, I would say about 10 years ago, I was at a bar in Hollywood with my family.

My family was visiting from Texas and we were at the. At a bar at 1.0 of the night. I don't remember anything. I don't remember getting in the car. I'm so grateful I was with my family. I don't remember getting in the car. I don't remember my family receiving me.

Once they got me home, they said I laid out in the front yard, which is like totally not me. And I was horribly sick the next day. But if I was with strangers, they could have did anything they want to me. And so I will always support Assemblymember Lowenthal's bills like this.

So thank you for bringing this Bill. Thank you.

Any other comments or questions from the Committee? Okay. Assembly Member Laurenthal, you may close.

Yeah, I just, I appreciate those stories so much. You know, it takes a lot of courage to state that you've been victimized and to state it publicly as our witness. Both witnesses actually eloquently stated, but our witness from alcohol justice state, 90% of assaults go under reported or not reported.

You know, so to speak out on these stories isn't just meaningful, it's incredibly helpful. This is ultimately about prevention. I don't know if the folks at the independent Association understand that this is all about prevention. Once somebody has been roofied, it's too late. So it's actually a village approach on all fronts.

And I for one, as a parent will feel very good knowing that any venue my daughters are attending, you can go to anybody there and say, do you have test strips available for me? Do you have test devices available for me? Where do I need to go for these things? Can I have a lid on my drink?

These aren't automatic. It's just upon request lids on your drinks that you would see at any fast food restaurant a lid that can now be a sticker that's actually placed on.

And as people in the bar and restaurant world came to learn and realized very quickly, and I think that in the venue Association or in the music festival Association will get their arms around very quickly. There are branding opportunities here for sponsors of these events.

Just like we've seen branding opportunities around drunk driving initiatives with major alcohol companies saying friends don't let friends drive drunk and so forth. That safety, that branding is good for business. So respectfully ask for your aye vote. And thank you all for the support.

Thank you. Assemblymember Lowenthal. As a mother of two teenagers, 118 who's getting ready to go to college and another that's going to be 17 on her way to college. It's really important that, that not only that we speak up, but we also educate them on the, the, the dangers of, of roofing.

And thank you for providing some guidance and some support as to what they can do. And hopefully. And I want to thank our. Your witness. It's. It is take. Does take courage. But I'm glad that you're not just here, you're also educating your fellow students at Sacramento State. So I really appreciate that.

And with that, we have a motion in a second. Madam Secretary, can you call the roll AB 668.

[Roll call]

The Bill has votes and we'll just leave the roll open for Members to add on. Thank you. Okay, I see. Assemblymember Bennet. So this Bill has a. A do pass recommendation. And we have Assembly Member Bennett. We also have Assembly Member Ramos and Assembly Member Gabriel that I do not see in the audience.

So if we can just let them know that we're getting close to the end. Really would appreciate that. Thank you. Assembly Member Bennett. You may go ahead and start your microphone.

Madam Chair and Members. AB880 ensures that nonprofit organizations receive prompt payment and fair compensation from the state for the true cost of providing services funded by grants. It does so by closing a loophole in the state's Prompt Payment act and improving coverage of nonprofits indirect cost benefits, making it consistent with what the Federal Government does.

The state relies heavily on nonprofits to help put critical policies into action and serve our most vulnerable communities. This legislation improves how the state contracts with nonprofits to address challenges for nonprofit organizations that receive state Fund grants. AB880 will ensure that nonprofits are fairly and fully compensated for both direct and indirect cost.

In support of this bill, I have with me today Ray Cansino with Community Bridges and Patrick Henderson with the Rural Community Assistance Corporation.

Good afternoon. Good afternoon, Chair Rubio, Members of Committee. My name is Ray Cansino and I'm the CEO of Community Bridges, a nonprofit multi service agency serving thousands of individuals across Santa Cruz, San Benito and Monterey counties. We are proud Members of Cal Nonprofits, a statewide alliance representing over 10,000 organizations.

I'm here today to express my strong support for AB 880, a straightforward, necessary step towards equity and fairness in California's grant and contracting process with nonprofits. This Bill addresses a long standing inequity. Under current law, the state can delay payments without penalty to nonprofits with contracts exceeding over half $1.0 million.

That means organizations like mine are often left waiting months for reimbursement, forced to take out costly loans, pay banking fees and strain limited resources, all for services we've already delivered. AB880 does two key things.

Eliminates the exemption that allows delayed payments and nonprofits under large contracts Putting us on equal footing with other state contractors requires the state to promptly pay all undisputed portions of an invoice, even even if a small part is being reviewed. Without these changes, we're not just hurting nonprofits, we're limiting our impact on the ground.

As Calmatters reported last year, chronic leak payments have already forced homeless service providers to cut back services, delay staff payments and reduce program capacity. This is not sustainable. A forthcoming Little Hoover Commission study found that 40% of nonprofits have considered walking away from state funding altogether because of delayed payments.

We are already navigating federal pressures, targeted vulnerable communities. Timely payments from California should not be another barrier. It should be assigned a partnership. AB880 is part of the California Contracting Equity Initiative, backed by over 550 nonprofit leaders. It's about basic fairness, operational sustainability and recognizing the vital role nonprofits play across the state.

We urge your support on AB880 and for a stronger, more equitable partnership between the state and the nonprofit sector. So thank you for your I vote thank you.

Go ahead and good afternoon Chair Rubio and Members. My name is Patrick Henderson. I'm the policy and advocacy specialist at the Rural Community Assistance Corporation based in West Sacramento right across the river.

RCAC is a nonprofit organization providing water and wastewater technical assistance, affordable housing services, lending services, and economic development services to underserved rural and indigenous communities across California.

RCAC is in strong support of AB 880 because it will allow us to be more efficient at providing services to our partner communities and because it would even the playing field between nonprofit and for profit assistance providers.

Right now there is no requirement for state agencies to fairly cover indirect costs for nonprofits, while for profit businesses can charge whatever they want. As a result, RCAC has to raise around $50,000 a year from philanthropic resources just to cover the cost of providing services under state grants. For profit businesses don't have to do that.

AB 880 would require agencies to cover reasonable indirect costs which would allow us to reduce transaction costs and be more efficient at getting services paid for by public dollars out to communities faster. AB880 puts nonprofits on equal footing with other state contractors.

It sets reasonable timelines, removes red tape over small discrepancies, saves state staff time, and creates better outcomes for our partner communities. These are no cost fixes with high impact benefits. For these reasons, I respectfully urge your I vote on AB 880. Thank you.

Thank you any other Members of the public and support.

Good afternoon Madam Chair and Members. Jennifer Fearing on behalf of California Association Nonprofits. Proud sponsor of AB880. Also on behalf of Community alliance with Family Farmers, the California Partnership End. Domestic Violence, Tree People and Leading Age Californian. Strong support. Thank you.

Thank you.

Good afternoon. Rachel Mueller on behalf of Self Help Enterprises as well as Cameo Network in strong support. Thank you so much. Thank you.

Good afternoon. Chair Members Danielle Bautista with United Ways of California also here in strong support. Thank you.

Thank you.

Good afternoon, Madam Chair. I'm Farah McDade Ting on behalf of the County Health Executives Association of California. We're an in-betweener. We're a support and concept. Our folks really do like the IND indirect cost rate agreement or a negotiated indirect cost rate. So we just wanted to say that and we also submitted a letter. Thank you.

Thank you. Okay. Anyone in opposition? Okay. Seeing none. I'll bring it back to the Committee for questions or comments. Okay. Seeing none. Member Bennett, you may close.

I requestly ask for an aye vote.

Thank you. I need a motion. Motion by Assembly Member Rodriguez. Second by Assembly Member Pacheco. Thank you, Madam Secretary. Cal, please. AB880 Bennett. The motion is do pass to the Committee on Appropriations. Rubio.

[Roll call]

The Bill has the votes. We'll leave the roll open for adding Members. Thank you. Assembly Member Ramos, you're next. And we will be waiting for Assembly Member Gabriel. Thank you. I have a motion in a second. Thank you, Assembly Member Ramos.

Thank you, Madam Chair. In 1998 while on tribal council, I introduced AB1953 with then Senator, Joe Baca. And in 1998, we moved forward on moving California Native American Day into the mainstream of California. To call on educational institutions to teach factual accounts of California's first people.

27 years later, we're here today, moving forward on that next step and that's to honor California's first people with a paid holiday. California is home to most- to more Native Americans in the country than any other state in the nation; Where hundreds of tribes continue to share its unique history with the community itself.

However, there still is areas that are not acknowledged or widely known about California's first people throughout the state. Issues like-, being slavery, slavery in the beginning, to militias to exterminate tribes. That was paid for by taxpayers dollars by the State of California.

And Land that was stolen from California's first people still has not resonated the year 2025. Twenty-seven years later, after we moved that first piece of legislation. It wasn't until recently of June 18, 2019, that the State of California, through its Executive, the Governor of the State of California, apologized for the atrocities committed by former administrations.

That violence left deep scars and with trauma, with many generations still impacted in California's first people. Yet California's first people are still resilient in moving forward.

The work here today continues to move forward with that next step 27 years later, to complete the acknowledgment of a paid holiday. To continue to educate this state's past and contemporary views when dealing with California's first people.

So on California Native American Day, we can officially honor this state's first people who continue to show the resiliency of elders present and our ancestors of what they went through, through the history of the State of California. The resiliency that they continue to show today, as we continue to move forward as a state, a state to atone of past practices and honor California's first people. To make this step a formal recognition of a state paid holiday.

I ask for your aye vote.

Thank you assembly member. Any Members of the audience in support?

Hi Members. Rachel Mueller, on behalf of myself; a white person who's living on the lands of the Nisenan and the Miwok and Maidu peoples. In strong support of this. Bill and really appreciate you bringing this to our attention. Thank you so much.

Thank you, Madam Chair. Scott Governar, on behalf of the Morongo Band of Mission Indians, in support.

Thank you.

Madam Chair, as a Member of the Committee, Frank Molina, on behalf of the San Ynez Band of Chumash Indians and the San Manuel Band of Mission Indians.

Thank you.

[Sequoia Coleman?] I'm a Member of the Seminole Nation of Oklahoma and Mvskoke. I'm here on behalf of California Native Vote Project as a Northern California community organizer and we are here in support.

Thank you.

Hey, I'm Kameiko Hostler. I am a Member of the Hoopa Valley tribe and I come from the village of Ta’k’milding. I am here in support of AB989 on behalf of the California Native Vote Project. Thank you.

Thank you.

Rocky Rushing, representing the Society for California Archaeologists. The society was unable to get its position letter in by deadline, but I'm here to express its support on behalf of its Native American Members and Non tribal Members alike. Thank you.

Thank you. Okay. Any other Members? Okay. Anyone in the audience in opposition? Okay. Seeing none. I'll bring it back to the Committee for questions or comments? Okay. Seeing none. Assembly Member Ramos, you may close.

Thank you so much, Madam Chair. And this is work that we've been working on for some time now. Now in the state Legislature, we're able to move forward. California Native American Day would symbolize reconciliation between the state and its first people.

It is the natural step in honoring the people who continue to call this land home and recognizing that there is still more work to be done to amend the wrongs committed against California's first people. I ask for your aye vote.

Thank you so very much and really appreciate you bringing this up. I know that you've done extensive work on making sure that the California's first people are not just acknowledged, but all of the rights returned. Really appreciate it. And with that, we have a motion and a second. Madam Secretary, can you please call the roll?

AB989. Ramos. The motion is due Pass to the Assembly Committee on Public Employees and Retirement. Rubio?Aye. Rubio, aye. Davies? Alvarez? Berman? Bryan? Bryan, aye. Carrillo? Demaio? Demaio, not voting. Dixon? Dixon, aye. Fong. Fong, aye. Gabriel? Gabriel, aye. Gipson? McKinnor? McKinnor, aye. Nguyen? Nguyen, aye. Pacheco? Pacheco, aye. Ramos? Ramos, aye. Rodriguez? Rodriguez, aye. Sanchez? Sanchez, aye. Solache? Solache, aye. Soria? Soria, aye. Ta? Ta, aye. Valancia? Wallis?

Okay, Assembly Member, we have the votes and we'll leave the roll open for additional Members. Thank you, Assembly Member Gabriel. Last but not least.

Assembly Member Gabriel, you may begin.

Thank you very much, Madam Chair and colleagues, I want to start by thanking the committee for their thoughtful work on this bill and confirmed that I will be accepting the amendments today.

Colleagues, I'm pleased today to present AB592, a measure that will support California's neighborhood restaurants by ensuring that outdoor dining remains a viable option for restaurants throughout the state. Neighborhood restaurants are the backbone of communities across California, but too many are continuing to struggle.

After enduring unprecedented challenges during the pandemic, these beloved small businesses are now grappling with major challenges from inflation and other cost pressures. AB592 will support California's restaurants by reducing red tape and enabling restaurants to leverage our state's exceptional climate.

In particular, this bill extends the regulatory flexibility granted under two bills that I previously authored, AB 61 in 2021 and AB 1217 in 2003, which allowed for outdoor and patio dining. Additionally, this bill will allow restaurants to operate with their kitchens open.

And with this flexibility, restaurants can create an inviting and open air atmosphere as part of the overall dining experience. And so doing, this bill will help keep our beloved neighborhood restaurants afloat and assist them on the long road back to economic recovery.

This bill is supported by a robust coalition across California that includes the Los Angeles County Business Federation, the California Travel Association, numerous local restaurants and hospitality coalitions, business councils, nonprofits and chambers of commerce.

I'm pleased to have with me today to testify in support of the bill Pat Joyce, on behalf of the California Restaurant Association and Christy Vega, owner of Casa Vega, a beloved family owned restaurant in Sherman Oaks. Thank you. And I respectfully request your I vote.

Thank you. Go ahead.

Thank you. Good afternoon Madam Chair and Members, My name is Pat Joyce with KP Public Affairs here on behalf of the California Restaurant Association, who is the bill sponsor and strong support. AB 592 proposes an extension to existing law that modernized regulatory pathway for expanded outdoor restaurant dining and alcohol service.

If approved, AB592 will allow neighborhood restaurants the ability to continue to seek temporary approval from the Department of Alcohol Beverage Control, ABC, to serve alcohol and expanded outdoor dining spaces. While this streamlined regulatory process was created at the outset of COVID 19 of the COVID 19 pandemic, it has been in place since and with great success.

It is a time tested regulatory reform that has benefited communities up and down the state. AB592 will provide another extension to this successful program that is critical for two main reasons. The permitting process allows nimble actions in local communities, often hit with natural disasters or other disruptions.

So that restaurants can pivot and operate and reimagine dining spaces, and this permit allows for controlled alcohol service in those spaces. Number two, the restaurants already enjoying these temporary permits will have time to complete a separate formal regulatory process that ABC has set up for those looking to make these dining spaces permanent.

This effort takes some of the early pandemic responses to restaurant closures and seeks to build off their success. Some of these local programs include San Jose's Alfresco Plan, San Francisco Shared Spaces Program, Sacramento's Farm to Fork Al Fresco, and so forth.

In short, AB592 enables restaurants to remain nimble by reducing the time and cost of alcohol permitting in order to keep these transformative outdoor dining spaces alive. Restaurants are the cornerstone of so many communities, and any regulatory relief for restaurants translates into additional resources for operators to reinvest back into the restaurant and its team members.

For these and other reasons, we are in strong support of AB592 and respectfully ask for your I vote thank you. Thank you.

Good afternoon members. My name is Christy Vega and I'm the proud second generation owner of Casa Vega, a family owned Mexican restaurant in Los Angeles. Casa Vega has proudly served our community for 69 years. We are the legacy of immigrants who built this business with love, grit and unwavering commitment.

I'm here today in strong support of AB592, a simple practical measure that continues to be a lifeline for restaurants like mine. When indoor dining shut down during the pandemic, I converted our parking lot into an outdoor dining space serving tacos and margaritas under the stars.

That flexibility is truly what saved my business and it is still critical today, especially as we face wildfire recovery, rising costs and unpredictable economy. But this just isn't just about me. It's about all of us. Since 2020, over 200 restaurants per year have closed in Los Angeles. We are losing cultural institutions and beloved landmarks like Casa Vega.

The Pantry, open since 1924, was supposed to close its doors last week. Langers Deli, 77 years old, is saying they're going to now shut down. Dupars, an 87 year old restaurant, is saying they can no longer afford to stay in business. These are not trends. These are straight up emergencies.

These restaurants, like mine, are woven into the cultural fabric of Los Angeles. They are more than businesses. They are neighborhood anchors, gathering spaces, job creators and living history. And right now they are in serious trouble and no one is listening. As a small independent owner, I don't have any corporate backing or investors.

I operate on a 5% margin. I am one woman doing everything I can to keep my family's legacy alive. When navigating runaway inflation, relentless wage increases and crushing regulations, instead of making it harder for us, the government should be doing everything it can to foster our survival.

AB592 is a clear opportunity to support small businesses by cutting red tape and allowing us to continue outdoor alcohol service, which has been proven to be safe, successful and essential. On behalf of Los Angeles institutions and independent restaurants across California, I respectfully urge you to I vote on AB592. Thank you for your time.

Thank you, members of the audience and support.

Good afternoon, chair Members Ross Buckley on behalf of Sacramento Mayor Kevin McCarty in support.

Thank you.

Good afternoon, chair members. Rachel Mueller on behalf of the Cameo Network in strong support. Thank you so much.

Hello. Emellia Zamani with the California Travel Association and strong support.

Chair and members, Norlyn Asprec with Axiom Advisors on behalf of the following restaurants in strong support: Bavel, Bestia, Hiho, Jon and Vinny's, Matu, Rossoblu, Rustic Canyon, Saffy's, Superfine Playa, Sushi Nozawa and UOVO.

Thank you.

Good afternoon. Carol Gonzalez, on behalf of Inclusive Action for the City in support. Thank you.

Thank you.

Eddie Navarrette with the Independent Hospitality Coalition in support. Los Angeles. Thank you very much.

Thank you. Any other members of the audience in support? Anyone in the audience in opposition? Thank you. Sure.

Good afternoon again. Fred Jones, on behalf of the California Council on Alcohol Problems, also a member of the California Alcohol Policy Alliance. Just point of clarification, are the amendments reinstituting the sunset date on TAC for 2029 so it's not permanent? Okay. All right.

We did not oppose the initial emergency regulations in the height of COVID for the expanded footprints for alcohol. We did oppose the subsequent extension, the temporary extension bill. And so we are duty bound to oppose this extension of the sunset. But obviously we came here prepared to speak against making this permanent.

So it's somewhat rendered my testimony moot. We are concerned, however, the longer you extend the sunset, the more these restaurants will invest in their infrastructure and the more difficulty it will be to pull that back when the sunset comes. So I think we're going to inevitably be here again in 2028 asking for this to be permanent.

I would love to see an amendment that would grandfather in existing restaurants that have invested this type of infrastructure, but not extend these same rights permanently forever. Thank you.

Thank you. Anyone else in opposition?

Hi, on. On behalf of California Alcohol Policy Alliance. I share the same comments as my predecessor. We would support if amended. Thank you.

Thank you.

Hi. Afternoon again. I'm the A.J. Robert Lipton, Alcohol Justice Director of Research and Development and we strongly oppose. Thank you.

Anyone else? Okay, we'll bring it back up to the committee for questions or comments. Assemblymember Bryan and then Assemblymember Solache.

Yeah, no, I. Our favorite date spot is Jon and Vinny's on Slauson and the second location is also in my district. Very well done of the author to build such a robust coalition around these much needed expansion of the things that we're working during COVID. We tried things to help businesses stay afloat.

That doesn't mean those things should end just because the pandemic has turned into an endemic businesses still need that support. Our restaurant industry needs that support. And I want to thank you for bringing this. Happy to be added as a co author if you'll have me.

Thank you. Assemblymember Solache.

Thank you, Madam Chair. First and foremost, yes, I would also like to be added as a co author. I want to first commend the witness that came in today.

As a business owner in my previous life before coming to the legislature, I worked with many small businesses, including clearly restaurants as I love to visit restaurants and I will have yours on my list as well to visit.

You know, I work for a chamber and they would complain to me that, you know, there's other business besides restaurants I'd go visit. But that was just something that I always like to support. I just think that this bill is a great bill.

I did see a lot of restaurants that benefited from being having outdoor patios not only from the angle of the restaurant but even from a consumer angle. I love the outdoors. During COVID obviously was the unknown. So I just being in the out and fresh air was good, but also just give a breathing line to our restaurants.

Right. And to the small business owners, especially in my district in Lakewood, a lot of small businesses that that depend on these type of, you know, thinking outside the box. So I really commend the witnesses and the author of this bill. It's important to our small businesses not only in my district but throughout California.

And let's do more of this because I think who doesn't love a nice sunny day outside Southern California eating a nice delicious meal with a lot of heart. So with that excited to support this bill. Thank you.

Thank you. Any other comments? Okay, we'll start here Assemblymember Davies. Then we'll Assemblymember Dixon and then Assemblymember McKinnor.

Thank you Madam Chair, I, I do want to say thank you so much for this bill. My background was food and beverage.

I managed many restaurants and during COVID was mayor of Laguna Niguel and dealt with trying to keep these facilities open and if anything, having the opportunity to think out of the box to have outdoor seating has made such a difference that I have communities now that have flourished because there's, that's a whole different type of feel that we haven't had in the past.

So thank you for bringing this forward and I too would like to be a co author. Thank you.

Assembly Member Dixon.

Thank you. I'm glad to see a small businesswoman seeking an opportunity to be more successful in your community. I do agree with the comments that since COVID when these provisions, extensions were allowed, it really brought a vibrancy and continued success in operating for restaurants. What I've learned in some of my communities that I represent.

While Southern California offers great external weather conditions to entice people dining on the sidewalks and such, it really is incumbent on restaurant owners, and I'm sure you're, you're a good restaurant owner to keep the sidewalks clean and clear the tables even on famous Balboa Island.

How nice it is to be dining on the sidewalk of Balboa island became unpleasant, frankly. And the restaurants are short staffed because labor costs are so high. They've eliminated a number of positions so the tables aren't cleaned quickly enough. And people like to bring their dogs to sit next to them. And I love dogs.

But anyway, just, I'm sure you are cognizant of the hygiene aspects because we want to continue. We want our restaurants to be successful. It's such an easy way to create goodwill. I know the City of New York ended its sidewalk program for many of the same reasons, just because it became a hygiene issue.

So as long as everyone is cognizant of the need to keep our sidewalks clean or our parking lots, wherever you have the extra tables, it's great. And I hope we can continue beyond. So good luck. Thank you. Best wishes to you.

Thank you. We have Assemblymember McKinnor, then Assembly Member Rodriguez and Assembly Member Pacheco. After that, McKinnor.

Oh, sorry to the assembly member. Thank you for bringing this bill up. I have two family Members and one that owns two restaurants. One in my district, the GS Sports Bar. The second one in Assembly Member Bryan's district. The district, and they welcome this. They call me to say, please, please support this bill.

They had a hard time during COVID but they made it over the hump they're still going, but it would help if they can. They can have this, this, this issue. And so with that, I'll be supporting this bill today. Thank you.

Thank you, Assemblymember Rodriguez.

I do want to thank the author. This is a great bill. Actually, there's a restaurant in my district, Tropical Mexico. And with this bill, I helped them stay in business during COVID and they actually, since they stayed in business, built. A big beautiful patio that now we. Hope to enjoy this summer.

So I just want to thank you. And thank the witnesses for coming here. I appreciate it.

Thank you. Assemblymember Pacheco.

Thank you to the author for bringing this bill forward. As mentioned from the previous comments, this is a great bill. So I would like to add myself as a co author.

Okay. Anyone else? Okay. Assembly Member Soria. Co author, yes.

Thank you. Assembly Member Gabriel thank you. This is great. I love going home on the weekends and literally we have our menu of how many restaurants we're going to visit over the weekend. Southern California.

And I know all of California, but is, you know, the reason that we enjoy it so much is because we have such variety. But if we don't help our small business owners and our small restaurants, we won't have the ability to hop around and try different amazing food. So thank you for bringing this up.

With that, we have a motion in a second and Madam Secretary, can you call the roll, please?

AB592 Gabriel. The motion is do pass as amended to the Assembly Committee on Health.

[roll call]

I thank you that enjoys all the votes needed and we'll go ahead. Thank you, Assembly Member Gabriel. Really appreciate it. Now we will continue and can you call the roll on all of the.

Can I just say thank you, Madam Chair. I just wanted to thank all my comments for their colleagues, for their kind comments. This is my first bill presentation.

I hope that all the rest go exactly the same, but we're grateful for the support and I just wanted to thank the witness for all of the work and for all of the work that our independent restaurants are doing.

And just to note to everybody, as much as we're having a feel good moment in committee right now and I hope that we can do more to cut away this red tape.

Three hours ago, the LA Times sent out a news alert special report, and it says an iconic French bistro is the latest victim of a wave of West Hollywood closures. It says after 44 years in Sunset Plaza, West Hollywood landmark French bistro shuts its doors permanently.

So this is an issue that is deeply impacting, as all of you know, small businesses across California. And so I'm just grateful that, you know the state is going to step up and do its part. So thank you.

Thank you, Madam Secretary, can you call the roll on all of the pending item? We actually. We need a motion and a second on AB268. Kalra second. Thank you. Okay, and then we're calling the consent calendar.

[Roll Call]

Thank you. Okay. Okay. We need to open the roll for Mr. Berman.

[Roll Call]

Okay, we are adjourned at 3:17. Thank you.