Assembly Standing Committee on Military and Veterans Affairs

Okay. Good afternoon. We call this Committee Assembly Committee on Military and veteran affairs to order. Before we begin, we'd like to make a statement on providing testimony at this hearing. We seek to protect the rights of all who per participate in the legislative process so that we can have effective deliberations on critical issues facing California.

All witnesses will be testifying in person, and all testimony comments are limited to the bill at hand in order to facilitate the goal of hearing as much of public comment within the limits of our time. We will not permit conduct that disrupts, disturbs, or otherwise impedes the orderly conduct of legislative proceedings. We will not accept disruptive behavior or behavior that incites or threatens violence. Don't do that. Substitutes, we have a couple members substituting who will be here shortly, I'm sure.

Assembly member Ramos, who I'm sure people remember as a former chair of this committee, and assembly member Boerner will be substituting in for Avila Farias and Quirk Silva today. And and we have five bills on file today. One which is in on consent. Item number one, SB 623 Archuleta, the veteran bond act. Item number two, SB 888, Seyarto, the property taxation for disabled veterans exemption.

Item three, SB 1354, military defensive state by Archuleta. Item four, SB 147, personal income tax exclusions. And item five, SCR 143, which is the Maungli Ocean, special guerilla unit veterans resolution, and that is on the consent calendar. So we do not yet have a quorum, oh. 12345. Okay. Since we do have a quorum, secretary, will you please call the roll?

[Roll Call]

K. We have a quorum, and we're gonna go a little bit out of order since our chair on the other side has quite a few bills to present all at one time. Senator Seyarto, if you wanna go ahead with SB 888.

Thank you very much, honorable chair. I'm here to present SB 888. First, I'd like to thank the committee for working with my staff on this important bill. SB 888 addresses a critical flaw in the system that unfairly penalizes disabled veterans by counting their disability benefits as income when determining eligibility for the disabled veterans property tax exemption.

In recent years, both California and the Federal Government has recognized that disability benefits are fundamentally different from earned income and have taken steps to exclude disability benefits from household income calculations.

In 20- in the 2024 legislative session and Congress, they acted to remove disability income from government housing eligibility calculations. SB 888 simply extends that same principle to property tax relief for our disabled veterans. The problem is clear. Veterans must be disabled to qualify for the exemption, yet the very disability compensation they receive is counted as income pushing many over the income threshold and making them ineligible for the low income exemption.

As a result, veterans disability benefits can unintentionally disqualify them from other critical resources creating a catch 22 where veterans lose access to the very relief designed to keep them stable.

Disability compensation is not a source of wealth. It is a recognition of service connected injuries and loss of earnings capacity. Under current law, veterans with a household income under $81,131 qualify for a higher property tax exemption through the low income category of the disabled veterans property tax exemption. Currently, a veteran rated at 100% disability by the VA with a spouse is awarded around $50,000 annually before any additional dependents or special allowances.

So security benefits also contribute significantly, and as a result, a 100% disabled veteran and spouse who have no earnings from work, but solely rely on disability and social security may be disqualified from the low income exemption despite living on fixed benefits and paying for high medical and medical care costs.

This bill is a proactive step to keep 100% disabled veterans in their homes and reduce the risk of homelessness or housing instability by ensuring the tax code does not punish them for receiving disability compensation. SB 888 simply excludes VA service connected disability compensation from the calculation of household income for purposes of the low income disabled veterans property tax exemption, so veterans are not penalized for receiving their benefits they've earned. I respectfully ask for an aye vote.

We have a motion and a second. And are there any primary witnesses in opposition? See- Seeing none. Are there any members of the public in who wanna voice support?

Good afternoon. My name is Sean Stevens. I'm a veteran service officer. I'm also the Marin County United Veterans Council president, past commander of, VFW and, American Legion out of Marin County. By following this,- this where you're removing our--

And just sorry. For public comment, just--

So sorry.

Name, organization, and if you it's okay. I- I should have said it earlier. Name, organization, and support or oppose.

No. No, I just forgot. Absolutely. Sean Stevens, I'm in support of. And, but this by following--

And that's I'm sorry.

That's it?

Alright. Thank you very much.

That's all. I know. I know.

You get the short end of the stick when you're doing public comment.

My fault for not designating everybody.

I'm sorry.

I'm David Kuta, disabled army vet, commander of the California VFW. I strongly support this.

Thank you.

Hi. Good to see everybody. Jim Zenner, national policy director for on behalf of National Association of County VSOs, and we support this.

Thank you.

Good afternoon. Yolanda Benson representing the California Association of County Veterans Service Officers in strong support.

Thank you.

Good afternoon. Don Harker with American Legion Department of California. We have a 100,000 members strong. We're here. We hope you support the bill. Thank you.

Good afternoon. Seth Reeb with Reeb Government Relations representing California State Commanders Veterans Council, Military Officers Association of America, California Council of Chapters, and the Vietnam Veterans of America, California State Council, all in strong support. Thank you.

Thank you.

Good afternoon. Helen Wong, junior and past commander, AMVETS Department California. We are in strong support of this bill.

Hello, Steve Spriggs, vice president of AUSA Northern California. We are strongly in support of the bill.

Mack Adams. I represent El Dorado Counties. I'm the commander of the VFW and the vice commander of the American Legion and chairperson of Military Family Support. I strongly support. Thank you.

Thank you.

Joe Canetti, Vet Fund Foundation, in support, and California's Bank Shambles of Commerce, in support.

Thank you.

Good afternoon, madam chair, members. Ted Toppin for the California State Retirees, in support.

Good afternoon. David Boone, president, CEO of San Diego Military Advisory Council, in strong support.

Thank you. And any opposition to the measure in the public? Seeing none, we'll bring it back to the dais. Vice chair.

Thank you, madam chair. First and foremost, your leadership here on this committee obviously helps us take care of our veterans across all of California. So I just wanna start off by thanking you for that and the staff who is always- always thinking about veterans first. Secondly, United States Marine Corps chief warrant officer Jeff Gonzalez, the only veteran in the state assembly and a 100% disabled veteran and coauthor of this bill.

I wanna thank the author as we continue to work on these issues and try and shore up the gaps.

Because really, that's what we're trying to do is shore up all the gaps across California when it comes to our veterans' military families. I wanna thank you for your leadership in this and- and finding the gap, and and most importantly, allowing me to be a co author on here, because it absolutely- we wanna keep our veterans here in California. We are all in agreement with that. Keep our veterans here.

Take care of them and their families because they have paid the ultimate sacrifice by signing the name on the dotted line.

So with that, I am in- obviously in strong support of this and urge my colleagues to do the same.

Assemblymember Davies.

Thank you, madam chair. I wanna thank you so much, both of you, for bringing this forward. You know, it's it's it's tough being a veteran in this state. We're one of the only states that still tax them on their benefits and retirement.

And so finding places like this that we can give them the opportunity to continue to- to afford to live in the state is so important to me. So, I mean, I- I think it's such I mean, what a great find. That's kind of what way I look at it because we're like I said, we're always trying to find places where it's like, how can we make it where they can afford to live here and- and also be rewarded for what they've done.

So I would be honored to be a co author on this bill.

And you have my support.

Absolutely.

Thank you.

Thank you. Wanna thank you for bringing this bill forward as assembly member Davies said, especially today with everyone struggling with affordability, and we know, you know, service members trying to decide where they're going to retire. We want them to retire here in California, and this is another way to make sure that we're supporting those service members and they have an opportunity to be here in our great state and make it more affordable for folks. So grateful for your leadership on this.

I'd also love to be added as a coauthor if you'll have me.

And- And with that, anything you would like to close with.

Great.

Thank you. And I would be happy to add all of you as coauthors. And, I just wanna say thank you to all the veterans that did show up today to, speak on behalf of this and also other bills that they will be speaking on. We have a- a- a district that is very, veteran centric, and- and it's important that we do the hard work for them with all of your support to ensure that just like you were saying, that they can afford to live here.

And so they paid the price.

It's time for us to pay- pay them back, and I appreciate your aye vote.

Thank you so much. With that, madam secretary, will you call the roll?

SB 888 by Senator Seyarto. Motion is do passed, and we referred to the committee on revenue and taxation. [Roll Call].

Oh, sorry. That has six votes, and we will leave the role open for absent members. Thank you so much, sir. And so next, our trifecta, Senator Archuleta. And we are going a little bit out of order on your presentation.

Is that correct? You'd like to present SB 1354 first?

1354.

Is that- Is that right? However you wanna do it. You got three bills. We're here with you. So.

We'll get through them right away.

Okay.

Well, let me first by beginning to acknowledge assembly member Ramos. We wanna do this publicly because his support for our bills in the past, our support for veterans, I was with them in San Bernardino County, Riverside County when we acknowledge the first the first door opening to helping veterans, and I and I wanna sincerely say thank you. So now together, we're gonna continue opening doors, and and some of you, I hope, will join me as coauthors and with the bills that we go forward.

So if I may, madam mayor, I will begin. I'm madam chair.

Madam mayor. Okay. Alright. Here we go. Well, thank you, madam chair and members.

It is with a great sense of duty that I present Senate Bill 1354, which would prohibit military personnel not operating under Title 10 from another state, territory, or district to enter California to perform military or law enforcement functions without the express permission of our governor here in the state of California. The bill's clear prohibition on out of state unapproved military activity reinforces the governor's constitutional authority as the commander in chief of our state of California.

It ensures California retains control over any armed or law enforcement operations conducted within its borders. Unfortunately, California is well aware of what it's like to have a national guard activated in our state without the express permission from the governor. California should not live in fear of unwanted or unwanted military involvement from any other state.

I wanna clarify that this bill does not affect the activation of guard units under Title 10. The legislation would not impact current mutual aid agreements such as the Emergency Management Assistant Compact or prohibit outside military personnel from attending schools and training such as going to Camp Pendleton or going to Fort Irwin, individually or as units, receive the training that we have and the facilities we have here in California under training obligations that they would have in their state.

At least seven other states have passed similar legislation that prohibits outside forces from entering their states, including Maryland, Texas, Kansas, Oklahoma, Idaho, North Carolina, North Dakota, and Washington. This measure helps prevent the misuse of military power. And with that, I ask for your aye vote.

Thank you very much. Any members of the public in support, please come to the microphone, state your name, organization, and position.

Sean Stevens, veteran service officer for United Veterans Council. And I would follow, Senator Archuleta anywhere, into any door, I support strongly.

Thank you. Everyone all over.

David Cuda, commander of the VFW for California, strongly support this bill.

David Boone, president, CEO of ST Mac, strongly supporting the bill.

Ramona Chavez, president of California Military Officers Association, representing 1,300 members across the state we support.

Thank you.

Vet Fund Foundation in support.

Thank you. Any primary witnesses in opposition? Seeing none. Any members of the public in opposition? Seeing none.

Second. Thank you. It's been moved and seconded. Bring it back to the dias. Any questions?

Assembly member Gonzales?

So there's a few things that you had mentioned in your in your opening that I just need a little clarity on. You talked about the the the training And or education. Can you can you just repeat that? You went a little fast, so I just wanna make sure.

Okay. Hypothetically, you're with the third Marine Corps unit in in Cherry Point, North Carolina. And your unit is gonna come in here into California to receive train training on communications, amphibious landing, or whatever it might be. And, of course, you're welcome to go ahead and do that. What this bill says is you cannot be dispatched by the state of North Carolina as an entire body unless approved by the the, governor of California.

That's what that means. Title 10 is still there, and it's just and individuals that can come in. That's not the problem. That's why this bill was enacted.

But I think there was a little bit of cross there. When you were referring to the third third Marine Corps unit, it would be under title 10. The, the National Guard would be a different piece. Is that No. It it Because it's two separate.

Well, primarily, it names the National Guard because that's where the issue started.

Okay.

But, it is open. California is open to all military personnel units, National Guard Reserve, and so on for training purposes. And it's just their National Guards that I had mentioned earlier.

So can because of what you said, I just don't see it in the in the bill. Would you make a commitment to what you just said, like, being placed inside of the bill?

That is not a problem.

Okay.

We'll clarify that.

And I

Great.

was just looking at it for line by line. Sure. And I I hear what you're saying, but I just wanna make sure it's it's outlined inside of the bill. So that way, no one tries to go off in a different direction. But thank you for that.

There there's some other pieces to this. You talked about mutual aid. Can you go over the mutual aid that you're referring to and how this bill?

Well, hypothetically, we have a fire that's raging in in near the border of Arizona and California. Mutual aid coming in. That National Guard unit coming in at the request of our governor or the invitation that's, extended to our governor. It's we just want the governors to be involved in agreements when a unit comes in.

Okay. There's some language that I'd love to be able to partner with you on moving forward. Like I said, I'm just reading it in in one context, but I think it's it's gonna take just me and you sitting down and I I I want this to go forward. I I just believe that there's some pieces that are missing with some definitions on so forth, that I think we can we can work together to try and try and shore up. Would you be open to that?

I we'd be more than happy to do that.

Love it. As the a team said, I love it when a plan comes together. Right? Yep. With that, that's all.

Any other questions?

Motion. Motion. Second.

We're doubly committed. Okay. So thank you so much, Senator, for bringing this bill forward. I know, you know, this is, touching a nerve here in California, when our governor was bypassed on making this decision.

And, and we know that, you know, having that input from the the governor, from local law enforcement to be able to assess whether or not they can handle whatever the situation may be or if they do need help, should be the the first stop, and really carry a lot of weight in making that decision.

And, and Americans, Californians have been very clear, that, you know, we wanna protect our first amendment right. We don't want, that right to be suppressed or coerced in any way. And and so, you know, this, I think, is and is an important message to send to make sure that we're protecting those pieces. And with that, would you like to close?

And I respect last year, I vote on Senate Bill 1354.

Thank you, Senator. Secretary, will you please call the roll?

Senate bill 1354 by Senator Archuleta. The motion is do passed as amended and referred to the committee on public safety. Schiavo?

Aye.

Schiavo, aye. Gonzales? Ramos? Aye. Ramos, aye.

Carrillo? Aye. Carrillo, aye. Davies?

Okay. For this. So just keep going.

Okay. Erwin Erwin Aye. Berner? Aye. Berner, Aye.

And then Valencia.

Okay. That vote that has five votes, and we'll keep the role open for absent members.

Very good. Thank you.

Thank you. And then next on the list, you wanna go SB 623, item number one, the Veterans Bond Act.

Move the bill.

Okay. A little smoother.

Thank you, madam chair. And, again, I am honored to present, to you members, Senate Bill 623, the Veterans Bond Act of 2026. Owning a home has long been a symbol of achieving the American dream as a real estate broker, and that's been my life for many, many years. I've seen firsthand how purchasing a home can change a person's life for the better and their families. For veterans, raising a family, homeownership is more than just a purchase or an investment.

It is the future of their family. It means putting down roots in a community after use of frequently moving while in military service. It provides stability for their children, builds lasting relationships with neighbors, and creates a foundation that can support their families for generations upon generation. For more than a hundred years, California has answered the call by giving veterans a unique path to homeownership beyond traditional financing and federal VA loans. So here in California, we have a special home loan program for our veterans.

It is the CalVet home loan program, which has which built specifically to serve veterans and family members here in California. Unlike many conventional home loans, CalVet keeps and services its loans in house, which gives the department more flexibility to work directly with our veterans who may experience temporary financial hardship or getting acclimated back into the system and dealing with FICO scores or whatever it might be. So they're a little more sensitive to our veterans. That's why it's so important to California.

Since its inception, the CalVet home loan program has helped nearly 500,000 veterans and their families purchasing homes.

Today, it continues to serve approximately 4,800 active and prior service members with loans totaling, listen to this, $1,200,000,000. California has definitely been there for our veteran. In fiscal year twenty four twenty five, CalVet funded more than 245,000,000 in home loans, a 22.5 increase, 22.5% increase over the prior year, clearly demonstrating that the need for this program remains strong. This is a proven program that has stood the test of time.

For more than a century, California voters have consistently reaffirmed their support by approving every veteran's bond measure placed before them since 1921.

The CalVet home loan program is self supported with veterans repaying their loans through the mortgage payments and interest rather than relying on ongoing taxpayer dollars for the loan program. My bill, Senate 623, would place the Veterans Bond Act on the 2026 voters before them on the November 3rd election, and that election will be statewide. So veterans across the state, families across the state will be able to continue honoring veterans in November.

The measure would authorize 1,250,000,000 in general obligation bond to continue funding the CalVet Farm and home loan program for eligible veterans. Without new bond authority, the CalVet home loan program could lose the ability to issue new loans, putting at risk a benefit that California veterans have had for their families and themselves for generations.

This bill simply gives the voters the opportunity to continue the legacy of service and honor, honoring our veterans who've come home. Our veterans answered the call when it was necessary to serve our country. Let's continue helping them and supporting them and supporting Senate Bill 623. Senate bill 623 gives Californians a chance to answer the call in return by ensuring this vital home loan program remains available for the next generation of veterans and our military families.

And as we all know, they're across the ocean right now.

These veterans will come home, and we want that VA loan there, but we want a Cal Vet loan program there to welcome them home. Here we today to testify on behalf of the bill, this chair of the Vet Loan Foundation, Julian Canete, and Tom Agostino from Aaron Reed and Associates who represents the Vet Fund Foundation, BFW, San Diego Military Advisory Council. Gentlemen, floor is yours. And, again, I respectfully ask for your aye vote.

Thank you, Senator. You each have two minutes, and the bill's moved.

Thank you, Senator. And and good afternoon, chair Schiavo, vice chair Gonzales, and committee members. And

thank you for all your hard work you do on veteran issues and making sure we're taking care of our our veterans here in California. Joint Canadian chairman of the of the Vet Fund Foundation. I also serve as president and CEO of the California Hispanic Chambers of Commerce. The chamber deeply values the service of our over 1,200,000 veterans who call California home. 25 nearly 25% of them being are Hispanic.

The Vet Fund Foundation is dedicated to enriching the lives of our veterans active service, active duty service members, and their families. We proudly support Senator Archuleta's SB 623. I would also like to thank the Senator and his staff for their commitment and hard work on this bill. This critical measure enacts the Veterans Bond Act of 2026, placing a $1,250,000,000 general obligation bond on the November ballot to ensure the continuity of California's historic and its successful Cal Vet home loan program.

For more than a century, as the Senator said, Cal Vet has helped over 500,000 California veterans make the most challenging and beneficial transaction they will ever make, buying a home and achieving the American dream of home ownership.

They have issued more than $8,500,000,000 loans in that time. Cal Vet home loan program exemplifies fiscal responsibility. It is entirely self funded and operates at a zero net cost to the general fund. Bonds are repaid through the veteran's monthly mortgage payments. California voters have recognized the immense value of the loan program approving all 27 bond acts placed before them since 1921.

However, Cal Vet's remaining bond authority will be fully depleted by fall 2027. Without SB 623, Cal Vet's ability to issue new loans will be cut off just as demand surges just as demand surges up 22% in the last fiscal year alone to $245,000,000. Cal Vet achieves this success by keeping loans in house and servicing them directly.

This approach enables the department to work with borrowers facing temporary financial challenges, supporting veterans who might otherwise struggle to qualify under a rigid conventional mortgage market. And furthermore, Cal Vet offers competitive competitively priced casualty and fire insurance, shielding veterans from California's increasingly volatile property insurance market and makes owning a home more affordable.

We respectfully urge your aye vote on SB 623, and thank you for the opportunity to address you this afternoon. Thank you.

Good afternoon, madam chair and members of the committee. I'd like to first acknowledge publicly that the champions in this room really, really looking out for veterans' backs. Currently, Senator Archuleta and the chairwoman here have been there for us in remarkable ways. Now have the former chairs, mister assemblyman, madam assemblywoman, have been nothing but sterling in standing up for veterans. There's not a lot more to fill in the blanks with respect to the bond request.

It's imperative that this bond get on the ballot and get passed by according to Academy Securities, which manages the bond financing. We will run out of funds in October of '27, Then loans will cease and layoffs will begin. The uniqueness of this has attracted states contacting Cal Vet and trying to find pieces of what we do so that they might do part of that. The uniqueness of this, given the banking laws over the last hundred years, no one can ever create this program in the country.

So this is a cherished treasure that we have here.

And we really really compel you and the voters to keep this going. This this benefit is almost half as old as our country is while we celebrate our two hundred and fifty years. We have to strongly urge we know what's going on in the world and the pressures that you're all under, but we still have to really urge the committee to reject the efforts to merge the the veteran home program into a larger general obligation bond. This measure is far too important and and contested initiatives can put the program in great jeopardy.

If that happens, we lose this program. So we ask you to continue your stellar stellar I mean, your your absolutely strong support for this community and continue to move forward in helping all of us keep our commitment to the veterans of the state and this country. Thank you very much.

Thank you. Is there anyone here in primary opposition? Seeing none. Any members of the public who would like to voice support? Name, organization, and position.

Thank you. David Cuda, army vet. I strongly support this.

David Boone, ST Mac in strong support.

Jim Zenner, NACBSO, strong support.

Steve Spriggs, AUSA, strong support.

Yolanda Benson on behalf of the California Association County Veterans Service Officers in support.

Helen Wong, army veteran, we strongly support.

Josh Baker with the California Enlisted Association of the National Guard of the United States representing your hometown national guardsmen. We are in strong support.

Anthony Butler-Torrez on behalf of the California Hispanic Chambers of Commerce in strong support.

Ramona Chavez, president of California Military Officer Association of America, strongly support.

Good afternoon again. Don Harper, Department of California of American Legion. I bought my first home with Cal Vet, so keep it going. Thank you.

Good evening. Odelia Wimberly, recent Navy veteran. VFW sixty seven, strongest support. Thank you.

Good afternoon. Seth Reeb with Reeb Government Relations representing American Legion Department of California, AMVETS Department of California, the California State Commanders Veterans Council, the Military Officers Association of America, California Council of Chapters, and the Vietnam Veterans Of America, California State Council on strong support. Thank you.

Byron Lam, retired disabled marine, and strong I strongly support this one, please. Thank you.

Retired command sergeant major Mac Adams. I'm the commander of the VFW, second commander of the legion. But Placerville has military family support. I strongly support.

Thank you. Any members of the public who want to speak in opposition? Seeing none, bring it back to the dais. Assembly member Irwin.

Well, thank you very much for bringing this forward. I was, as you know, the chair of military and veterans for eight years and, had the bill that got absorbed into the I think it was 2017, bond that that was passed. And the reason that I think I I everybody has said it already, but the reason this is so important is that Cal Ver really works with with anybody that is having difficulty making their payments.

And I think we we definitely owe it to the vets to work with them, and we also owe it after their service to this country to give them the opportunity to, purchase a home. I think it's incredibly important.

I would like to be a coauthor, but I am if you will take me, but I am concerned about how many issues are on the ballot this November. Is, what happens if somehow with everything on the ballot, people there's some, you know, exhaustion and people start voting no. Is there still time to put this issue on the ballot again?

My relationship with the governor's office, the secretary of state, we will try to do everything we can to make sure it is on the ballot regardless the number of other bond issues because the veterans deserve to be on the top, and we'll fight for that. And as you noticed, we had every military branch represented. We had every organization representative, American Legions, VFW, Marine Corps, you name them. They all just testified.

They're all gonna support, because I'm gonna call them, and we're gonna go ahead and move this along.

And every office in this building will get a call from veterans. And I think that will take us up to the top. So fear not, we will be there. Thank you.

Can I answer your question?

Sure. I thought you had something more to say.

First of all, you're correct on one item to also put there, which is pretty impressive, having really gotten into this deeply during COVID. We have the lowest foreclosure rate in the country of any lender, which is pretty remarkable. That's hard work by that bank on the 2nd Floor on No Street. But if it fails to get on the ballot or fails on the ballot, there's no way you can get on before two years after that without having a massive signature campaign.

And if I and just to to add to the question. So the timeline is very, very tight.

Yes.

It has to be to qualify for the ballot this year, it has to be signed by the governor on the twenty fifth of this month, which is in nine days.

So that's why we kind of have parallel tracks going here. We're trying to move this forward as quickly as possible. I'm also working with assembly member Wicks on the housing bond to see if it can be in there, if that's the hail Mary that we need. And so I think we're just trying to push push both these carts forward at the same time, and and hopefully, this one is able to make it to the finish line in time.

Yeah.

And if not, we're hoping that the the housing bond can be back.

If I may, assembly member, thank you for bringing that up. Thank you. You have just rung the bell. You've rung the bell to these veterans behind me. You've rung the bell to our colleagues here, and the clock is ticking.

And, again, all of us, we're gonna receive a phone call. All of us gonna be making calls together. We've got to get this on the ballot. No doubt. And we will.

Vice chair Gonzales.

Thank you, madam chair. When this issue was brought to me, I was like, we gotta do something. I went from from boot camp to barracks, barracks. Excuse me. Boot camp to barracks.

Barracks to base housing. Base housing to home loan program. I bought my first home through this program, and there's no other way that I could have done that. Right? We we certainly don't do it for the roses and the money.

But I'm very thankful for that, and I'm thankful for your leadership in seeing this and the need and the urgency. So if there's anything that I can do and my caucus can do to make sure that we are ringing that bell, You can count on me to do that. I also respectfully ask to be a a coauthor on your bill because I wanna make sure that we support this 110%.

K.

If you'll have me.

Of course.

So seeing no more questions, just thank you so much for your leadership. As has been stated, this is a phenomenal program. Really, really changes lives for our veterans. For example, during COVID, there were no foreclosures for veterans who had gone through this program. And to the point that assembly member Erwin made, how that really works with veterans to make sure that they can figure out how to keep people in their homes.

It's the kind of compassionate lending that we would love to see all over the place and and the kind of support that certainly our veterans deserve after such a sacrifice. So I wanna make sure you're accepting the amendments, committee amendments. Okay. That was a yes.

And, and then it adds urgency to it. And then I just wanna note that the referral has changed. So the bill is now gonna go to assembly committee on housing and community development next.

We're just gonna keep on trucking on. Push push push. Right. Okay. I would also love to be added as a co author and join the fight on all sides here.

Yes.

And, any, no one else? Okay. So we'll, go ahead and call the roll. Madam secretary, thank you.

Senate bill 623 by Senator Archuleta. The motion is do passed as amended, and we refer to the committee on housing and community development adding urgency. [Roll Call]

Okay. That one is also out, and I don't know if we have any absent members. So we'll keep it that way. So

May I close?

Your last one.

No. No. May I close?

Oh, yes. Oh my goodness. I'm so sorry. Go for it.

I'd like to thank each and every one of you. And I would love it if each and every one of you will call my office and tell them that you wanna be a co author. Because if you don't call, I'm gonna make you a co author whether you like it or not. So it would be honored to have you all together because that's gonna start the ball moving. And, imagine and we'll go back to the other committee, and then we'll start.

And before the end of the week, if we can get ten, fifteen, 20, by the end of following week, we can get, you know, 80. And then by then, we can maybe get all 120. Because this is vital for California and our our veterans, so I thank you all. And with that, I ask for an aye vote.

Madam chair, can I be added as coauthor?

You can. You convinced another one. Good job.

Okay. We got it.

Phenomenal. Okay. Thank you. Thank you so much.

And your last and final bill here is 1407. SB 1407 personal income tax Good. Exclusion.

Okay. Thank you.

Move in second.

Madam Chair and members, I am so proud to present Senate Bill 1407. Veterans, like all Californians, are struggling with high cost of living.

Veterans want to live in this wonderful state, but they too are feeling the squeeze of current economic conditions, which is why, as Chair of the Senate Military and Veterans Committee, I partnered with our State Treasurer, Ma, and my counterpart in the Assembly, our Chair, Madam Chair Schiavo, and I introduced Senate Bill 1407 in your honor as well, because you helped me with the bill that stopped the predators hurting veterans. And you championed it alongside me, and Madam Chair, I want to thank you publicly.

We couldn't have done it without you and all the Assembly members, because the Assembly gave me 68 votes, and that took us over the top.

No doubt. So back to Senate Bill 1407. It is coauthored by Vice Chair Gonzalez, and I thank you for that, and cosponsored by the San Diego Military Advisory Council, who are here with me. And Senate Bill 1407 is an opportunity to serve those who have served our country. It is a message to our California veterans that we give back.

We thank them. We acknowledge them. It will exempt the first $40,000 of veterans' military retirement pay, as well as a surviving spouse's benefit payment, from the state taxes, as long as they make less than $125,000 a year as a single or head of household, or a combined $250,000 as a married couple. Between 2010 and 2022, California lost over 24,000 military retirees. As retention challenges grow, we must recognize that fiscal policy plays a long-term role in these decisions.

How do we keep our veterans in California? This could be a big first step. Keeping veterans in California must be a priority. As of 01/31/2023, about 127,793 military retirees in California received total monthly payments of $362,000,000, or about $4,300,000,000 annually, from the United States Department of Defense. So that money is there for them.

About 25,705 survivors in California received total monthly payments of just over $39,000,000, or about $468,000,000 annually. So why am I pointing that out? Because if we lose our veterans to other states, they're taking those benefits and those payments into the other states to go ahead and buy and pay and purchase and everything else. But if we can keep them here, those monies will stay here. And that money would otherwise enter our local economies.

That's the thing. Cities across the state of California will reap the rewards of that economic push. It would fund businesses, create jobs, generate sales tax, but most importantly, support our economy. California's current tax structure discourages long-term service and drives away mid-career leaders. They actually push them away.

We've got to stop that, weakening our state's ability to meet homeland defense, wildfire, disaster response, and civil support missions. These veterans have experience. We need their expertise, their experience, their loyalty, and we need their families. Additionally, over 810,000 national security jobs depend on our ability to attract and keep highly skilled military retirees, many of whom embark on second civilian careers in their nearly 40 years of age, some of them that retire. And they can be here to generate new state and local revenues with their income.

Some will pick up a second career, from being the mailman, being a mechanic, school teacher, whatever. And they will contribute taxes that could range anywhere from $50,000 to $100,000 in taxable income annually, aside from their federal retirement. We cannot lose them, not a single one. This bill is an accumulation of countless veterans and families telling us it's just not enough. Senator, Assemblyman Ramos, again, thank you for the $20,000.

This is $40,000, and we'll keep pushing because we're not done yet. This isn't about revenue losses in the state. It's about how we can make veterans and their families who've given up so much stay here in California. This bill keeps revenues in California. We must keep our veterans in California.

The industries, the workforce development that is so poorly needed, we have to keep these jobs in California. Let's keep them in California. Let's exempt the $40,000 of their income. And with me today, I have David Boone, Admiral David Boone, I might add, with San Diego Military Advisory Council, and VFW State Commander David Kuta. And, gentlemen, the floor is yours.

And, Madam Chair, I respectfully ask for your aye vote.

Thank you, sir. Admiral.

Good afternoon, honorable Chair and members of the committee. My name is David Boone. I'm President and CEO of San Diego Military Advisory Council, a nonprofit whose mission is to advocate, inform, and connect the military, veterans, and their families with industry, community, and elected officials. Today, I'm here to advocate for Senate Bill 1407, which provides for a tax exemption on military retirement pay and survivor benefit pay.

Since 2000, California's population of military retirees has fallen by 27%, while the military retiree population in the United States overall has actually increased by 17%.

Until last year, California was the only state in the union that fully taxed military retirement pay. I have submitted for the record SDMAC white papers documenting the trends on these numbers. Last year, we made progress on this issue with the Governor's leadership for a partial tax exemption of $20,000, along with the adjusted gross income caps of $125,000 and $250,000 respectively for singles and families. We are appreciative, thus far, of the progress in this legislature to increase the tax exemption to $40,000.

However, this is still on the lower end of tax incentives as compared to other states.

38 other states offer full tax exemptions. And of the 11 other states that don't fully exempt, California is on the lower end of the incentives. Wages in our state for veterans serving as policemen or electricians are easily going to be in the $125,000 range. And together with their spouse's income, they would quickly exceed the restrictive caps, only providing this benefit to those on the lower income scale. Further, we are really trying to attract the senior enlisted community, E6 through E9.

Since the junior enlisted generally don't make it to retirement, the senior enlisted community are the skilled veterans who we need more than ever, and who make more than these cap limits will allow. So the constraints of the adjusted gross income caps of $125,000 and $250,000 are the real challenge.

Retaining more veterans would serve to bolster our struggling workforce shortfalls, improve our trades with quality people, infuse federal dollars, as the Senator said, for health care and educational benefits, and jump-start the innovation and tech sectors. But if we don't make progress to increase the caps this year, the veteran community will lose faith in this state and continue the exodus to other places. Thank you very much, and I'm happy to answer questions.

Chairperson Schiavo, committee members, honored guests, including California's veterans in attendance, my name is David Kuta, Sergeant First Class, United States Army, retired. I served nearly thirty years in uniform, and today I continue serving our citizens as a California state employee. I say this because I chose California. The Army brought me here in 2009. Yes.

I'm an import. And I stayed because I love this state. But today, like many military retirees, I'm facing a difficult decision. Can I afford to stay? SB 1407 is not just policy.

It directly affects whether veterans like me remain in California or take our skills, experience, and contributions elsewhere. I speak not only for myself, but in my role as the Veterans of Foreign Wars Commander for California, I represent over 85,000 combat veterans, auxiliary members, and their families, as well as more than 135,000 military retirees across the state. And I can tell you this, we are leaving. We are leaving for states that recognize our service not just with words, but with action, states that do not tax military retirement pay.

Yes. We've had some movement. We've had some partial exemption, which is outstanding. But I've had countless conversations with fellow retirees who have already moved, and their message is consistent. California's cost of living is high, and taxing military pensions makes it harder to stay.

Now this bill is about competitiveness. Military retirees bring leadership, technical expertise, workforce readiness. These are exactly the skills California needs to remain strong in both established industries and emerging sectors. California leads the country in various emerging sectors, and we want to maintain that, and veterans support that. But right now, we are exporting that talent to other states.

SB 1407 gives California a choice. Do we continue to fall behind in retaining military retirees, or do we take meaningful action to support them? I ask that you all support this step forward. Passing this bill sends a clear message. California values military retirees and is willing to back that up.

We stood for this country. Today, we're asking California to stand for us. I thank you for your time. I'm happy to answer any questions.

Thank you so much. Any primary witnesses in opposition? No opposition. We're going to take primary witnesses in opposition first.

Good afternoon, Chair and members. Danielle Kando-Kaiser here on behalf of the California Tax Reform Association. First and foremost, I want to thank the author and those members of the military who are here today for their past and current service to our country. Regretfully, we must oppose the bill today. The California Tax Reform Association is a nonprofit organization of labor, public health, education, and public interest groups, which advocates for fair taxes and a healthy public sector.

Our goal is to seek reforms in the California tax system that will improve equity while providing a stable and fair tax base for the state and local government. California already provides generous benefits to veterans, particularly for disabled veterans, and a substantial retirement pay exclusion from military retirement pay. The choice of long-term military service is similar to other very valuable public servants, such as teachers, our law enforcement, firefighters, and nurses, who receive no such exclusions from their retirement pay.

Excluding far more and eliminating income restrictions provides tax benefits that other public servants currently do not receive. For these reasons, we do request a no vote. Thank you.

Thank you. Now, members of the public in support. Your name, organization, and position.

Mark Macdonald on behalf of National University, a veteran-founded university, in support.

Thank you.

Donald Harper with American Legion Department of California. We support the bill. Thank you.

Josh Baker with the California Enlisted Association of the National Guard of the United States, and we're in strong support.

Odelia Wimberly, recently retired US Navy and VFW Post sixty seven, strongly support.

Helen Wong, the UMASS Commander, Department of California AMBASS, strongly support.

Ramona Chavez, President, California Military Officer Association of America, we strongly support.

Good afternoon. Jack Werson from NOSMEN on behalf of the County of Monterey, in support.

Good afternoon. Anthony Butler-Torrez on behalf of the California Hispanic Chambers of Commerce, in strong support.

Good afternoon. Seth Reeb with Reeb Government Relations, on behalf of California State Commanders Veterans Council and the Vietnam Veterans of America, California State Council, all in strong support.

Clifton Wilson on behalf of the Shasta County Board of Supervisors, in support. Thank you.

Steve Spriggs on behalf of the Association of the United States Army and also the California Veterans Chamber of Commerce. Strongly support.

Russell Manning on behalf of the California State Treasurer, if you will, and my proud cosponsor.

Ted Toppin for the California State Retirees, urging an aye vote.

Sergeant Major Mac Adams, California native son, forty one years of military service. I strongly support this.

Jim Zenner on behalf of the California Association of County VSOs and the National Association of County VSOs, strong support.

Thank you. And any members of the public in opposition would like to register? Seeing none, we'll bring it back to the dais. Vice Chair.

Thank you, Madam Chair. There was a quote that was made that California veterans already receive generous benefits. I'm trying to convey this in a professional manner, because that got under my skin, that someone would say that California veterans already receive generous benefits. If scraps were benefits, then yes, I would agree. But what is the life of one veteran?

What is it worth? You know, I kind of look at this and say, of course someone would think that. Of course there's a group of people that might believe that. But there's a very small group of us that have put on the uniform. There's a small group of us that either served a couple years or a lifetime, and there's a small group of us that never came home.

So to say California veterans already receive generous benefits, I would have chosen a different way to communicate that, because it is offensive to the men and women who serve this nation. It is offensive to the warriors, the dragon slayers of our military. It's offensive to the husbands and wives of service members. It's offensive to the gold star families that will never be able to see their family member again. It's offensive to the very freedoms that we enjoy here today.

So I refuse, and I'm thankful for the author for fighting for the scraps that we get, and how quickly people forget the very lives that we put on the line every single freaking day for two hundred and doggone fifty years. That being said, this is just a scratch in the surface of what California can do for our veterans, our military, and their families. This is nothing, but it's something that we can get done. A famous general said, you've awakened the sleeping giant.

If California continues to put veterans off to the side and throw us in a corner, trust me when I tell you, you will awaken the sleeping giant. And that sleeping giant is fed by the men and women of our armed forces. That being said, I wholeheartedly support this. I will make sure that this gets through at least within my colleagues because that's the least we can do for the men and women of this nation.

Any other comments from the dias or questions? Assembly member Davies.

Thank you. And I I wanna thank my colleague for seeing exactly what I was thinking, during that presentation. I wanna thank the Senator. I've I've been on military support. I'm going on my sixth year now.

And it was very enlightening to me when I first came up here and realized again that we're one of the only states that still taxes, pensions, and retirements. And it's downright shameful. When we can sit there constantly in here, we're the fourth largest economy in the world, and then we have something like this. And how many years it took to finally get $20,000? $20,000 write off.

And, I mean, I know this was going on. We were voting in this every year and every year. And I say thank you for keep pushing. You know? Talk about baby steps.

So when I saw this film, like, alright. We're we're moving forward. But, again, we're losing our veterans right and left. And, again, the skills, I talked to trades and, you know, the average age for a trades person is 38 years old. We don't have the gap.

We're looking at so much experience and expertise that's going out the door, whether you're getting someone that's, you know, a vet that's only 20 some years old or 30 or and moving up. If anyone deserves to live in California, to afford to live in California, it is our veterans. And I too will continue to fight. And the fact that we have to sit here and go a little bit at a little bit, again, is embarrassing. It's shameful.

I'm so grateful for this bill. And I hope that while I'm still up here, I will see where we get to the point where it is a 100% tax free as a veteran to be here. All we have to do is look at the skills, the economy growth that would come in here that we would keep and what we're losing right now, it would make up for that. And when we look at budgets every year, I don't see much in our budgets again.

So we have to do bonds, and we have to do little baby steps like this.

So I apologize, and I'm so grateful for all of you. And there's so many of us. We know so many of the members that fight fight for your rights to be able to live in a state that is your state. And so where we need to go next, because we know where this goes, this goes to appropriations most likely. That's unfortunately where a lot of this stops.

And we need to put pressure on appropriation. So I would be honored to coauthor. I would do whatever I need to do, make phone calls to get the extra 40,000 in there. And, again, I apologize, and I'll be damned if I will stop fighting for you. Thank you.

Alright. I applaud you on that one.

Any other questions, comments from the dais? I wanna, also give special special recognition to assembly member Ramos who led, this bill for multiple years, and helped us get to the 20,000. We know it's not enough, but it was the first time we got it in the budget. And it was, it was certainly a victory to build upon, and that's why we're here today, to build upon that important step forward.

You know, one of the things I wanted to mention, admiral Boone has been gracious enough to work with us, our committee, who've worked very hard to do legislative tours down in San Diego.

And and, you know, meeting many of the soon to retire military leaders, doctors, nurses, some of them that we very much need here in California, and seeing just the high quality of of soldier that we are training in our military and what a waste it is for all of that training and expertise and knowledge to to leave our state. And, you know, I think all all of you made incredibly strong cases for how this is actually going to benefit our state economically.

And I think far too often, policies that we work on here at the state level and the analysis that we get back that we're supposed to rely on, you know, stop short of talking about the economic benefits and only talk about the cost. Right?

It's just the cost to the budget, but they're not talking about the ripple effects when you keep high wage workers in the state who are gonna pay income taxes and sales taxes and all the other things that will not only replace this tax benefit, but but beyond that.

And, you know, and for California to con continue to trail behind in the nation is embarrassing. And we should do better, and we need to do better. And, you know, and I I I will say that as the daughter of a veteran, sister of a veteran, and hearing the stories today about the, you know, the benefits that our state provides authors here are authoring important bills to make sure we protect our home loan program, which I would not call scraps, and other, you know, important programs.

I went to college on a fee waiver because of my dad's disability benefit, and I was able to qualify for that fee waiver. And it's the only reason that I was able to afford to go to a a CSU.

And and so going to college, you know, definitely not a scrap. But, you know, at the same time, we all know that we need to do more and we need to do better here in California, and I think this is a a perfect example of that. And we know that the average retirement military retirement is $34,000 a year. So this while it's 40,000 and it's not a 100%, it actually captures a lot of the retirees who are gonna be retiring.

And so I think, you know, it it's a reasonable step up as we continue to fight for a 100%, and it will still capture a lot of folks who are gonna be included in this and and give serious relief and hope that they are able to afford and choose to be here and stay here in California.

Thank you, chair. Yes. May I make a clarifying statement? Yes. Well, if if this bill moves forward at 40 k, and that would be appreciated, the real restriction in the bill are the caps.

That's what's really becoming the neck or the restriction for this community of people, particularly with the wages that people are making in Southern California plus their retirement. It's the caps that's really what up people are up against. So I just provide that as clarification.

Thank you.

Madam chair, I may add Thank that the average retirement for an e six twenty years is about $2,600 a month. $2,600 a month after twenty years. $2,600.

Yeah.

So what is that mathematic? Less than 36,000. But if he's fortunate enough to get a job at Rockwell or a defense plant, whatever it is because of his skills, and that takes him up to a 126,000 total, he doesn't get a dime. He is not eligible. That $40,000 we talked about, he gets zero

Because he made too much money. Why? Because the threshold is $1.25. That that's what we're trying to fight. In the other states, the 38, there is no threshold.

Right.

Right. And my

That's the difference.

And my understanding is there's ongoing discussions in the Senate to kind of figure out where this sweet spot is in terms of the threshold. Yeah. Correct? Yeah. Okay.

Okay. Good. So we hope those are fruitful conversations, and you land in a really good place. And I think anything?

Okay.

So with that, we yeah. Did you wanna close? Thank you.

Did you Let

me let

me let me

let you know that.

Already We have a motion and a second already. So if you'd like to close

close. Well, first off, let me just say thank you to each and every one of you wanting to jump on board and be coauthor of of all these bills, in particular this one. But I will tell you, every veteran that stood up with that microphone wasn't talking about himself or herself. They were talking about the people, the veterans they represent. And if you think of the you're talking about sacrifice.

You think of the sacrifice and what they've seen, the dreams they have night after night. I still have mine. God knows what my son is gonna feel when I see him this Friday after twenty years of service with two bronze stars and combat paratrooper, and I'm wondering how he's gonna feel when he gets home.

The other son that I have who's still there, who got blown through a wall and and lost a a few members of his platoon as a second lieutenant, Now he's a major, special forces Green Beret with seven deployments. I'm wondering what he's gonna be like when he gets home.

The sacrifice is enormous, and we can't, you know, put one against the other. God bless our firefighters, our school teachers, and nurses, and doctors, and you name it. God bless them all. But the men and women who serve in the military today, in the past, and in the future, they need to know that California is a veteran friendly state honoring their service. This is just the first step.

And the veterans behind me, thank you for showing up. From Los Angeles, San Diego, you name it, they've come to Sacramento to let us all know how they feel about this bill and all the other bills. But more importantly, they're here to represent their own, their families, their service, their military branches, and I thank them. So with that, madam chair, I ask for an aye vote.

Thank you, Senator. And madam secretary, will you please call the roll? The Senate Senate bill 147 by Senator Archuleta, the motion is do passed,

and re referred to the committee on revenue and taxation. Chavo? Aye. Chavo, aye. Gonzales?

Aye. Gonzales, aye. Aye. Ramos? Aye.

Ramos, aye. Carillo?

Aye.

Carillo, aye. Davies? Aye. Davies, aye. Erwin?

Aye. Erwin, aye. Berner? Aye. Berner, aye.

Valencia?

One.

Valencia, yes.

That one is out, and we will next do thank you so much.

Yes. Congratulations. Thank you, everyone. And we have the consent calendar. Okay. So, madam secretary, can you call the roll on the consent calendar? Oh, thank you. It's moved and moved by assembly member Ramos. Second by our vice chair. Will you call the roll, please?

Well, thank you, madam.

[Roll Call]

Okay. That's out 8-0, and we are going to go through and do add ons for a SB 888. Madam secretary, please call the roll for additions.

[Roll Call]

Okay. That is out eight zero. And and now add ons for SB 1354. Madam secretary?

[Roll Call]

Okay. So that is all. Six zero, that is out, and everything else is eight zero. And with that, we will adjourn the assembly committee on military and veteran affairs. Thank you.