June 8, 2026 · Revenue And Taxation · 6,948 words · 15 speakers · 76 segments
Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. . Thank you. Thank you. We're going to get started as a subcommittee. I want to go over a few ground rules and housekeeping items. I want to say good afternoon and welcome to the hearing on the Assembly Committee on Revenue and Taxation. Before we take up bills, I want to go over the agenda. I will be addressing a few housekeeping items first. I would like to remind the advocates to submit your letter one week prior to the hearing in order for your organizational position to be reflected to the bill analysis. I also want to remind everyone that the committee has a suspense file and the details about the process are spelled out on the committee's rules and posted on our website. In summary, bills with the revenue impact of more than $150,000 will not be eligible for a vote immediately after their presentation and instead will be referred to our suspense file. Now, to reiterate, if a bill increase or decrease revenue by more than $150,000, it will be automatically referred to our suspense file. This enables the committee to holistically consider the proposal before us and to better prioritize policy changes, which is especially important given that the projected budget conditions that we find ourselves into as a state. Accordingly, one bill on today's agenda is a suspense candidate, and that will be file item number 1, SB 288 by Mr. Senator C. Alturo. And we don't have a, we don't, oh, we do. Okay, Mr. Carrillo just walked in, so we do. I would ask our committee secretary,
would you please call the roll to establish a quorum?
Ms. Heill.
Gibson.
Here.
Gibson here, Sanchez.
Here.
Sanchez here, Carrillo.
Here.
Carrillo here DeMaio Here DeMaio here McKinner Kirk Silva Rodriguez We have a quorum A quorum has been established We will now move to our first item on the agenda SB 288 Senator Ciaro, would you please have a seat? And your witnesses are also invited to come join you. And they're here. And they're here. Okay. Sounds good. You may begin when ready. Again, This is file item number one, SB 288. Begin when ready. All right.
Thank you, Honorable Chair. I'm here to present SB 288 and my other bill to establish positive momentum for the committee today. I would like to thank the committee and stakeholders for their work on this measure. This bill contains provisions similar to those which were heard in the committee last year. Prop 19, which passed in 2021, included a restriction on the transfer of family homes between parents and their children, particularly regarding the retention of the property's Proposition 13 protected tax base. Under Prop 19, a recipient must move into the home, claim it as their principal resident, and file for their basic homeowner exemption within one year of receiving the property. Individuals who inherit a property that is held in probate have found themselves unable to possess the property under the one-year timeline and have lost their Prop 13 protected tax valuation. This measure will clarify that Prop 19 calendar year for individuals who are undergoing probate process starts when the home is legally declared to be theirs. While I understand this measure is being referred to the committee suspense file at the appropriate time during suspense file action, I would ask for an aye vote. Thank you very much.
Being that you have no witnesses, I'm in support. We'll move to the audience. Anyone wishing to speak in support of Senate Bill 288, would you please report the microphone, your name, your organization, and this is support.
Scott Kaufman, Howard Jarvis Taxpayers Association in support.
Thank you.
Good afternoon, Larissa Mercado on behalf of the California Assessors Association in support.
Thank you. Thank you very much. Any primary witnesses in opposition to Senate Bill 288, we invite you to come take a seat at the table. This is primary witness in opposition. Hearing and seeing none. Anyone in the room wishing to register your opposition to Senate Bill 288? You have the same right. Hearing and seeing none. I'm going to bring it to the committee. Mr. Jemayo.
I want to thank Senator Cierdo for his leadership on this issue. Obviously, I did not support Prop 19. A lot of families have been hurt by Prop 19, but it currently is on the books. I think that in the interest of fairness and the original intent of Prop 19, the concept of the one-year timeline would have begun when someone inherited the property. And here in probate, there may be a question. And so the timeline should not start until probate finishes and the individual has achieved ownership. So this is consistent with Prop 19 in terms of the intent, and I would hope that we all can do the right thing and support it at the appropriate time on suspense. Thank you.
Thank you very much. Any other questions from my colleagues on the dais? Seeing and hearing none.
Mr Serralto would you care to close No I just simply ask that you consider this carefully when it comes up on suspense and cast a vote for it
Thank you very much. Thank you. Thank you very much. Again, this bill will be referred to our suspense file. Thank you very much. I know you have another item. We'll move quickly to that item. File item number two, SB 974, and you may present when you're ready. Do you have any witnesses?
you would like to invite? No, I usually come witnessless.
Okay. You may proceed when ready. All right. Thank you, Honorable Chair and Members.
I'm here today to present SB 974, and I would like to start by thanking the committee staff for their work with my staff on this bill, and I will be accepting the committee amendments. The legislature has ensured several times that administrative uncertainties and legal vagueness should not prevent individuals from meeting Prop 19 requirements. While the Board of Equalization has issued guidance regarding what qualifies as a trust under Prop 19, the legislature can remove any uncertainty by explicitly naming special needs trusts. Individuals who otherwise would inherit a property but cannot due to the requirements of a special needs trust should not lose their Prop 19 exclusion. I respectfully ask for an aye vote.
Thank you very much. Anyone in the room wishing to speak in support of this measure, name, organization, and this is support.
Thank you, Mr. Chair. Gene Hurst here today on behalf of the Riverside County Board of Supervisors in support.
Thank you very much.
Scott Kaufman, Howard Jarvis, Taxpayers Association, in support.
Thank you. Seeing no one else. Any primary opposition to this measure? Primary opposition. Hearing and seeing no one coming forward. Anyone in the room wishing to speak in opposition, name, organization? This is opposition. Seeing none, bring it back to the dais. Any members wishing to? Okay. It's been moved by Mr. Cazir. It's been properly moved by Ms. Sanchez. seconded by Ms. Sanchez, and he's already indicated he will be accepting the amendments. Madam Secretary, would you please call? Oh, I'm sorry. Please forgive me. Mr. Arso, would you like to close? I simply ask for an aye vote. Thank you. Thank you very much. We'll ask Madam Secretary, would you please call the roll? The motion is due pass as amended to appropriations. Gibson? Aye. Gibson, aye. Sanchez? Aye. Sanchez, aye. Carrillo? Aye. Carrillo, aye. DeMaio? Aye. DeMaio, aye. McKenna? Aye. McKenna, aye. Cork-Silva? Rodriguez? That bill passes 5-0. That bill is out 5-0. We'll keep the roll open for absent members. Thank you very much. File item number 3, SB 575. Mr. Senator Lehrer, come on down. I love the hat. Thank you. And I appreciate the waiver to be able to wear it In assembly hearings Mr Chair I here about Senate Bill 575 which reestablishes the Sea Otter Voluntary Contribution Fund allowing California taxpayers to voluntarily support Sea Otter conservation through voluntary tax return donations I authored the bill that originally created this in 2006 and since that time there have been millions of dollars that have gone to research and protection to both the Coastal Conservancy and the California Department of Fish and Wildlife Unfortunately, the fund fell below its minimum contribution in 2024 and then was not allowed to be in the tax form in 2025. This bill restores the sea otter voluntary contribution fund till 2023 of this support is essential to protecting sea otters in California coasts from the impacts that that deal with them. It doesn't impose any tax increase. All contributions remain strictly voluntary. With me today is Pamela Flick, the California Program Director for the Defenders of Wildlife. And at the appropriate time, I would respectfully request an aye vote. Thank you very much and welcome. You have two minutes. Thank you so much. Good afternoon, committee members. My name is Pamela Flick. I'm the California Program Director for Defenders of Wildlife. As a sponsor of SB 575, I respectfully urge your support. Southern sea otters are among California's most beloved critters. As keystone species, they maintain the balance necessary for healthy kelp forests and help sustain these vibrant near-shore ecosystems. Thanks in large part to the California Sea Otter VCF, our sea otter populations are rebounding. But even with a population hovering around 3,000 individuals, recovery remains a challenge. Ongoing threats include shark predation, oil spills, entanglement in nets, plastic and fishing lines, toxic algal blooms, waterborne pathogens, habitat loss, and boat strikes. The VCF has collected over $5 million since its creation and has made a meaningful difference in the path to sea otter recovery through state coastal conservancy restoration grants and public education efforts. Further, the Department of Fish and Wildlife relies on funding from this program to conduct sea otter conservation science, population counts, and investigation into the causes of sea otter deaths. Facing economic uncertainty and reductions in federal funding for wildlife conservation, much of the important sea otter research and restoration work will be at risk without this essential funding pot. So that this critical funding source continues well into the future, we strongly urge your aye vote. Thank you. Thank you very much. Anyone in the audience wishing to speak in support of this measure, SB 575, would you please come forward with your name, organization, and this is support. Asha Sharma on behalf of Sierra Club California in support. Thank you. Thank you. Carla Garibay-Garcia on behalf of Monterey Bay Aquarium and Surfrider Foundation in support. Thank you. Marissa Rodriguez on behalf of Planning and Conservation League, Defenders of Wildlife and Resource Renewal Institute. Thank you. Thank you. Thank you very much. Primary opposition to this measure, would you please come forward if you're in the room? Hearing and seeing none. Anyone in the room wishing to speak in opposition of this measure, you have the same right. Hearing and seeing none, I'm going to bring it back to the dais. Ms. McKenna. Yes, I'd like to thank the author for bringing this bill. I had an opportunity maybe two years ago to go and visit and see all the sea otters and it was a great experience um so we really need this because they also we could figure out if something bad is going on in the ocean with our fish and our food and I'm a seafood lover so I need to make sure that the shrimp and the crabs and the lobsters are okay too and so this is a uh I support this bill. The sea honors are adorable, and it's much needed. Thank you. And this bill is a vote item, so I will need a motion at the appropriate time. Yes. Move the bill? Well, one moment. We want to have Senator Laird, if you'd like to have any closing remarks. Senator McKenna gave a great close. I respectfully asked for an iPhone. Thank you very much. Do it for the 10 pairs of the sea. It's been moved. It's been probably moved and seconded by Ms. Sanchez, Vice Chair. Thank you very much. This motion is due pass to the Committee on Appropriation. Ms. Highland, please call the roll, please. Gibson? Oh, the motion is due pass to appropriations. Gibson? Aye. Gibson, aye. Sanchez? Aye. Sanchez, aye. Carrillo? Aye. Carrillo, aye. DeMille? DeMille, aye. McKinner? Aye. McKenna, aye. Cork-Silva, Michelle Rodriguez. It passes five. There's zero. That bill is out. We'll keep the roll open. Thank you. Thank you very much, Chair and Committee. Senator Alraguin. File item number four, SB 762. Senator, you may, you have witnesses? Yes. Okay. They're approaching. Move the bill. Well. Great. Yes. Great. Thank you very much. Senator, you may start when ready. Well, thank you very much, Mr. Chair and members. It's my pleasure to present Bill 762, a bill that responds to the growing fiscal pressures facing local governments across California, including Santa Cruz County, Santa Barbara County, the cities of Santa Maria, Santa Rosa, Rona Park, and two communities in my own district, the city of Hercules and the city of San Pablo. Cities and counties are facing growing fiscal pressures driven by significant health care and public safety cuts in addition to rising costs and infrastructure needs. This is largely driven by the recent passage of H.R. 1, which has resulted in significant impacts to counties and cities throughout the state of California. Due to counties and cities' legal mandate to administer social programs, local governments are faced with difficult decisions of diverting money from other public services, or finding ways to stretch very limited general fund dollars to cover these essential needs. This means many of our local governments are having to eliminate critical safety net programs that our constituents rely on, whether it's needing help to buy groceries or making sure that kids and families have access to medical care. Many local jurisdictions are urgently pursuing a variety of strategies to balance their budgets, including freezing vacant positions and finding ways to trim their budgets outside of maintaining essential services. Senate Bill 762 would authorize several local governments to seek voter approval for a transaction and use tax in their respective jurisdictions, something the legislature has done on numerous occasions in the past. I want to emphasize that this bill does not impose any tax. Rather, it allows the respective cities and counties to put a measure on the ballot where voters will ultimately decide, the voters will ultimately decide whether this tax will be adopted or not. With me to testify in support of SB 762 is Chris Kelly, the mayor of the city of Hercules, and Jean Hurst, representing the counties of Santa Cruz and Santa Barbara. Thank you very much, Senator. Your witness, you have two minutes each, so whoever wants to go first, please proceed. Thank you Good afternoon Chair Gibson and members of the Assembly Revenue and Tax Committee My name is Chris Kelly and I the mayor of the city of Hercules I want to thank Senator Erdogan for his leadership on this effort SB 762 is a thoughtful, balanced measure that provides limited statutory flexibility for certain cities, including Hercules, to seek voter approval for a local transaction and use tax above the current statewide cap. Importantly, this bill does not impose a tax increase. It just allows our voters to decide for themselves if more locally controlled revenue is necessary to meet our needs. Hercules is a city of 26,000 people. We are a low property tax city. And like many California cities, we're facing real financial pressures driven by inflation, aging infrastructure, deferred maintenance and rising public safety costs. Hercules has already taken corrective action. Some years ago, we laid off 40 percent of our staff. We froze positions, reduced spending, and we pursued operational efficiency. Despite these belt-tightening measures, our structural budget's challenges do remain. Without added fiscal flexibility, cities like Hercules will be forced to make more difficult decisions. These involve service reductions, delayed capital improvements, and diminished emergency response. So SB762 offers us a responsible solution. It allows our residents to determine if additional locally controlled revenue is needed to preserve our public safety, maintain infrastructure, and support long-term fiscal sustainability. Again, SB 762 lets communities have the ability to address our own needs through local voter approval. SB 762 provides a measured voter-driven pathway for cities to address those needs. For all of these reasons, the City of Hercules respectfully urges your aye vote on SB 762. Thank you very much. Next witness. Thank you, Mr. Chair and members. Jean Hurst here today on behalf of the County of Santa Cruz, as well as the County of Santa Barbara, to respectfully request your aye vote on SB 762. Speaking for Santa Cruz County, like many other communities across the state, the county is struggling to maintain access to critical health care, hospital, and food assistance services. in light of the significant reductions by the federal government included in H.R. 1. And we have heard loud and clear that the state is not able to completely backfill these losses, leaving our local hospitals, clinics, and other supportive services at risk of severe cuts. The County of Santa Cruz is the safety net for those communities that are traditionally the most disproportionately impacted by budget reductions. SB762 offers the opportunity to continue to protect those in our communities who need the most assistance. Just some quick facts that we wanted to share. In Santa Cruz, 83,000 people in the county are enrolled in Medi-Cal. Nearly 43% of births in the county are covered by Medi-Cal. 31,000 residents receive CalFresh benefits each month, and more than 20,000 households rely on food assistance. These figures illustrate the scale of services that help residents meet basic needs and maintain stability in a high-cost region. As a result, we would like the opportunity to ask our voters to consider options to help maintain access to important safety net programs in our community and respectfully request your aye vote on SB 762 on behalf of the counties of Santa Cruz as well as Santa Barbara. Thank you. Thank you very much. I don't even have to say it. You're already here. So anyone in the room wishes to speak in support of this please line up This is I Need Your Name your organization and this is in support only Please proceed Laurie Ann Farrell interim city manager city of Santa Rosa We've cut $25 million, including 82 positions, 9 police officers, and 24 firefighters. Your name, organization, and support. Please support the bill. Thank you. Thank you very much. Major Xavier, the city of San Pablo, vice mayor, chair members. No, ma'am, just your name, your organization, and support. That's all we have time for. City of Tampa, Vice Mayor, I support. We support. Thank you very much. Julia Cargo, Assistant City Manager, City of Pacifica. Please support this bill. Thank you very much. Katie Nomura on behalf of the Town of Los Gatos in support. Thank you. Emily Sanborn with the City of Ronan Park in gratitude and support. Thank you. Mr. Chair and members, Terry Brennan on behalf of SEIU California in support of local control. We urge your aye vote. Thank you. Thank you. Good afternoon, Chair and members of the committee. Marcella Piedra, City of Warner Park, please support the bill. Thank you. Thank you. Good afternoon. John Cregan, Santa Rosa, Chief of Police, strongly in support. Thank you. Good afternoon, Chair and members. Connor Gussman on behalf of Teamsters California in support. Thank you. Good afternoon. Molly Mello representing Central California Alliance for Health in support. Thank you. Thank you. Honorable Chair Nicola DeLuca, I've got four Me Too's. San Pablo Police Officers Association, Los Altos Police Officers Association, Pacifica Police Officers Association, and then the Operating Engineers Local 3 out of San Pablo in support. Thank you. Thank you. Chair and members, Karlyn Shelby on behalf of the cities of Palo Alto, Los Altos, and San Gabriel in strong support. Thank you. Thank you very much. Primary witnesses in opposition, would you please come forward? Hearing and seeing none. Anyone in the room wishing to express opposition to Senate Bill 762, would you please come and take a seat at the table? You want to do it from right there? Sure. Scott Kopp and Howard Jarvis Taxpayer Association in opposition. Thank you very much. Anyone in the room wishing to express opposition, name, organization, and this is opposition, you have the same right. Hearing and seeing none, I'm going to bring it to the dais. Mr. Jamayo. I sometimes sound like a broken record, but I do believe that since we do have so many local elected officials here, you need to hear this. Your constituents are hurting. They're struggling. Now is not the time to raise taxes. Now is the time to do what every struggling family, every struggling small business has had to do. Tighten the belt. And to hear the rationale as to why we need to increase taxes, it's always someone else's fault that did it to us. I'd like to see your budget. I'll sharpen the pencil. We can balance it without burdening families. That is your job. That is all of our jobs. Easy way is to say, well, I have a problem. Let's go ahead and put it on someone else. You say that, well, the voters get to decide. I've seen your deceptive ballot language. It's appalling. It's not a fair presentation. And so I sit here and I have to express the voice of the voiceless the struggling taxpayers out there who cannot afford more and who are looking to you to do your job and live within your means. Today, you may not agree with this voice, but you at least heard it. Ms. McKenna. Yes, thank you guys so much for coming and speaking with us and thanks to the Senator. When you talked about 40% layoffs, you're talking about working families. You're talking about people who go to work every day, work hard, work for government. The pay's not always high. I used to work for government. I'm a retiree, but I love my job and I love serving people. And so I did it. And so to see those 40% layoffs is heartbreaking. And we don't want to see anymore. We're having the same problem in Los Angeles, and we just did the same thing. We're also talking about funding the police and the firefighters. The best way to defund the police is for us to not have money there to pay them. And so we know that when people, something happens, an emergency happens, we want to call our firefighters. We want to call our police officers. We're also looking at Medi-Cal, making sure that we can keep our clinics open, that we can serve people and that they can have health care. That is extremely important. So saying tighten up your purse straps and throwing people off of Medi-Cal is not an answer here, not in California. Also, when we look at the food stamp, when we talk about CalFresh and SNAP, we talk about people not having food to eat. And so we don't tighten our purse straps on that either. We want to make sure that people are not dying because they don't have health care and they don't have food. And so with that, I extremely support you guys. And I thank you ladies for coming and speaking with us. And I support the bill. Thank you very much. Okay. Well, let me just say as the chair, I align my comments with Ms. McKenna. I know we just did this in Los Angeles County because we have a real issue in Los Angeles County. And we're still tabulating the votes right now in terms of measure in Los Angeles County. We have to do something doing nothing is not an option. And I want to commend the senator for taking on this this task. Thank you very much for your leadership, for your resilience, for your boldness. Again, with the lack of resources coming in from Washington, D.C., policymakers and leaders who have been elected, this is what you have to do. You're asking your residents by putting something on the ballot, asking them to see whether or not they want to do this or not. And this is what democracy looks like. And you're asking them if they say yes, then you will put the resources to good use. And if they say no, you will also understand that no. But you're giving them the opportunity to at least weigh in. And this is what democracy looks like. And so I support this senator for, one, listening to the call of the voices of the elected official who represents and have your hand on the pulse of the community. And so with that, Senator, would you wish to close? Well, thank you, Mr. Chair, for those comments. I think Assemblymember McKenna made my closing for me very well. But I'll just say that these counties and cities are not coming to you asking for this authorization as a first resort. This is a last resort. Sure. After finding ways to find efficiencies, freeze vacant positions, cut from their budgets, but yet they're facing challenges. deferred maintenance for infrastructure, the need to fund public safety services, police and fire, and the impact of H.R. 1 on providing essential health care and solar care. services to people throughout the state of California. I wish we were in the situation where we needed to do this, but I want to give the voters of the two cities in my district and the counties and cities that are in this bill the opportunity to consider whether to approve a tax increase. Sacramento is not imposing it on these counties and cities is giving the voters a choice to make their own decision inside their own future to make sure we have robust services and can fund public safety. I respectfully ask for an aye vote. Thank you very much. I just want to remind members, this is a vote item. However, because of the additional urgency clause, we would have to, by the Rules Committee, we would have to adopt the urgency first. So I will entertain a motion first on the urgency. So I need a... Okay. Move the urgency. It's been moved. It's been moved. Do I hear a second? Second. Second by Ms. Quirk-Silva. So please call the roll. On the urgency, Gibson? Aye. Gibson, aye. Sanchez? No. Sanchez, no. Carrillo? Aye. Carrillo, aye. DeMaio? No. DeMaio, no. McKenner? Aye. McKenner, aye. Quirk-Silva? Aye. Quirk-Silva, aye. Rodriguez, the motion carries. Great. Thank you. So the motion carries, and we already have a motion made by Carrillo, Ms. Carrillo, and second by McKenna on the original motion of the bill. And now this motion is due pass as amended to the Assembly Committee on Local Government. With the urgency, it's already been motioned by Mr. Carrillo and second by McKenna. Madam Secretary, please call the roll. The motion is due pass as amended to local government. Gibson? Aye. Gibson, aye. Sanchez? Sanchez, no. Carrillo? Aye. Carrillo, aye. DeMaio. DeMaio, no. McKenner? McKenner, aye. Quirk Silva? Quirk Silva, aye. Michelle Rodriguez. That bill passes. That bill passes. We will keep the roll open for absent members. Thank you very much. Thank you. Yeah, you may begin with ready. Thank you. Thank you. Thank you, Chair. Good afternoon, colleagues. I want to thank you for the opportunity to present SB 999. SB 999 delays the annual publication date of the health minimum essential coverage individual mandate report from March to June 1st so that the report will be more complete and capture relevant data from those taxpayers who file by October 14th deadline. Currently, the Franchise Tax Board is required to annually report specified data on penalty payments and state financial subsidy reconciliations related to the minimum essential coverage individual mandate, but more complete data can help policymakers and the public understand how the health insurance mandate and state subsidy reconciliation are working. I respectfully ask for an aye vote on SB 999. Thank you very much. Being that she doesn have any witnesses anyone in the room wishing to speak in support of SB 999 Please come forward Name organization and this is support Sure Christine Smith Health Access California in support Thank you very much. Any primary opposition to this measure? Please come forward. Hearing and seeing none. Anyone in the room wishing to speak in opposition? Okay. So I guess I know the answer to the second one, too. Bring it back to the dais. Anyone wishing to ask any questions of the author on this measure? Hearing and seeing none. Senator, do you wish to close? SB 999 is intended to simply extend existing requirement for the Franchise Tax Board to publish the health care minimum essential coverage individual mandate from March 1st to June 1st. And with that, respectfully ask for an aye vote. Thank you very much. This bill is a vote item, members, so I will entertain a motion. it's been moved by Ms. Quirk-Silver second by Ms. McKenna the motion is do passed to the assembly committee the appropriation committee Madam Secretary please call the roll the motion is do pass to appropriations Gibson aye Gibson aye Sanchez Aye Sanchez aye Carrillo Aye Carrillo aye DeMaio DeMaio no McKenna Aye McKenna aye Quirk Silva? Quirk Silva, aye. Michelle Rodriguez. That bill passes 5 to 1. That bill is out 5 to 1. We'll keep the roll open for absent members. Thank you very much. Thank you. File item number 6, SB 1073, Smallwood Cuevas. Welcome.
Thank you, Mr. Chair.
Do you have any witnesses?
Afternoon.
Oh, wonderful.
Hello.
So you may be getting ready.
Thank you, Mr. Chair, and good afternoon, colleagues. I am proud to present to you today SB 1073, and I want to start by thanking the chair and your hardworking committee staff for their support in getting us through this process, and we are very happy to accept the committee's amendments. I'm proud to present this bill because it provides California taxpayers a voluntary opportunity to support the preservation and long-term sustainability of one of California's only and first Black historic cultural districts. My district, South Central Los Angeles, is home to one of the largest Black populations in California. It has long been a center of Black culture, Black history, Black politics, Black community, Black art, with historically significant concentrations of black residents whose artistic and civic contributions have helped shape Los Angeles and the state for generations. Notable landmarks like the Los Angeles Memorial Coliseum, which hosted the 1932 and 84 Summer Olympic Games, stand as enduring reminders of the historic and cultural legacy and symbol of the city itself. The historic South Los Angeles Black Cultural District lifts up the legendary cultural center like the Crenshaw Corridor, Leimert Park, Central Avenue, where murals and public art reflect a deep-rooted tradition of creativity, activism, and cultural expression that continues to shape Los Angeles and the world. Recognizing this legacy the California Arts Council voted to officially designate this area as the Historic South Los Angeles Black Cultural District to formally acknowledge the profound contributions of Black Angelenos to the city of Los Angeles and the state of California This is one of the first state designated and recognized black cultural districts in California We hope it will not be the last And at a time when the federal administration is actively trying to erase black history and undermine cultural diversity, we need these wins. That is why SB 1073 is so important to us now. This bill allows Californians to make voluntary contributions through their personal income tax return to directly support the historic South Los Angeles Black Cultural District. We also know this is critically important now as the state is facing tremendous budgetary constraints. And we know one of the things that has been dramatically cut back this year in the governor's budget has been our arts and culture programs. So we don't want our institutions to be further dismantled, to be further harmed by not having adequate resources to operate. So this is a chance for California to give residents the opportunity to support their own and at the same time be prepared to the state to kick in when our budget situation is better so that we will have ample resources to hold on to our treasures. With me today to testify is our great director, Julie. Julie, why am I forgetting your last name, Julie?
Because it's not in my talk.
Easy, easy. Baker. Baker, Julie Baker, who has been a champion on this issue of our arts and culture, cultural districts, and ensuring that they're fully funded here. She leads the California Arts Foundation and is the sponsor of this bill.
Yes. You have two minutes. Thank you very much and welcome.
Thank you. Thank you, Senator. Chair Gibson and members of the committee, thank you for the opportunity to speak today. My name is Julie Baker, and I'm the CEO of California Arts Advocates. We are proud to serve as a sponsor of SB 1073. By establishing a voluntary tax contribution fund for the historic South Los Angeles Black Cultural District, SB 1073 provides a targeted, community-centered solution to ensure this vital piece of our living cultural heritage is preserved, celebrated, and sustained for future generations. We believe this voluntary model can be a powerful tool for other districts across our state to tap into the generosity of Californians who want to invest directly in the identity of their local communities. However, while we advocate for this specific mechanism, I must be clear about the broader landscape of the California Cultural District Program. 2015, the state passed AB 819, which directed the Arts Council to create a cultural districts program. The 22-23 California budget appropriated $30 million over three years for the program, but $20 million was swept back into the general fund in the 23-24 budget. The $10 million that was left went to the 14 pilot districts to be expended over three years, which ends this month. This program is growing. We now have 24 state-designated cultural districts spanning urban, rural, and coastal California. Yet despite their profound cultural and economic significance, these districts currently have zero dedicated state funding or staff attached to them. The contrast is stark. Texas, for example, has 50 cultural districts and allocates $12 million to their program. In California, our cultural districts are proven catalysts for economic vitality. From Little Tokyo to the town of Truckee, we have seen time and time again that state investment functions as catalytic capital, leveraging every dollar into additional foundations, grants, private partnerships, and local government contracts. These districts boost local pride, reinforce neighborhood identity, prevent artist displacement, and support our creative workforce. We see SB 1073 as an important model, but it cannot be the only tool in our box. Dedicated ongoing state appropriation for the entire cultural district program remains essential And we look to the future and prepare for the global sporting events coming to California in 2028 We need to ensure that the infrastructure of our cultural districts the very soul of our state is adequately resourced We urge an aye vote on SB 1073 to support the South L.A. Black Cultural District, and we ask this committee to work with us to restore sustained, dedicated funding for the entire statewide network of California cultural districts. Thank you.
Thank you very much. Anyone in the room wishing to speak in support of this measure 1073, please come forward. Your name, organization, and this is support.
Good afternoon, Jasmine Asher. I'm representing the Greater Sacramento Urban League, and we are in proud support.
Thank you very much. Primary opposition to this measure, please come take a seat at the table. No one is here for that. I want to bring it back to the committee. Yes, Ms. Quirk-Silver.
I want to appreciate the Senator for bringing this forward, and of course the CEO, as we have had many conversations of the value of arts and the contribution in California. I remember when the senator, I think, was just elected maybe by a few months, and we had a meeting exactly about California cultural arts districts, and she asked, how do we expand this? And they certainly have been expanded from 14 to 24, and yet funding is kind of the key that we are missing. But I appreciate this voluntary model as we know that it isn't the entire type of funding we need to seek, but it certainly is something that could begin a process. And one of the things now being here for more than a decade is I call it slivers of legislation, which means we want this or this. But sometimes you get this and depending on the budget, it goes up and down. And so there will be more to come in some future time or maybe even this year. We'll see. But the point is that you're doing something now that is concrete while you are moving forward. So I certainly appreciate this and appreciate that you've been focused and you're making progress on something that's very important to you, but not just to you, to your community and the cultural art district, the Black Cultural Art District. So with that, I do move the bill.
Second. Okay. Thank you very much. Anyone else? I just want to say at my voice to the choir as well, I want to thank you for your commitment, your drive in this space.
Certainly you've woken up other communities in this space, namely my community, my district, who will also debate you vigorously as it relates to the historic history and the Watts community where everything started in 1965 and other areas as well. but it's good. It's really good that you have gone down this path. I just want to commend you and congratulate and elevate the work that you're doing in this space. It's so much needed and just really appreciate your hard work and appreciate my colleague, because she chaired the Arts, Entertainment, Sports, and Tourism and has given that of history that you've been on this journey for a long time and certainly appreciate your work in this space and also looking at this particular way in terms of getting funding. So I appreciate that work.
So with that, if you wish to close, please do so.
Well, I want to thank you, Mr. Chair, for your comments. And I will say that South L.A. and Watts, we are brothers and sisters. There's richness has no boundaries. And certainly there's a lot of important, rich black cultural history in Southern California, and particularly in our county. I want to thank the great Assemblymember Sharon Croxelva for her leadership in the arts and culture space because she didn't withhold information. She shared the information in terms of how do you get your communities to be recognized and how does this rich cultural experience create this amazing tapestry that is California. That's what we are fighting to preserve. We need state resources for this, but we are also saying that residents can also have some self-determination by supporting SB 1073. So with that, I respectfully ask for your aye vote. Thank you very much.
This, members, this bill is a vote item, and the senator has already accepted the amendments, and it's already been moved and seconded. So the motion is due passed to the Arts Committee as amended So I would ask Madam Secretary would you please call the roll as amended The motion is do pass amended to Arts Entertainment Sports and Tourism Committee Gibson?
Aye.
Gibson, aye.
Sanchez?
Aye. Sanchez, aye.
Carrillo?
Aye. Carrillo, aye.
DeMaio?
Aye. DeMaio, aye.
McKenner?
Aye. McKenner, aye.
Crooksilva?
Aye. Crooksilva, aye.
Rodriguez?
Aye. Rodriguez, aye. That bill is out. That bill is out. Thank you very much. I need to get Ms. Silver and some bills. And Ms. So we're going to go back to the beginning for members to add on. Madam Secretary, when you're ready.
SB 575, and that is item number three.
Quirk Silva?
Aye.
Quirk Silva, aye. Rodriguez?
Excuse me?
SB 575, item number three, Laird? Aye. Rodriguez, aye. We filed item two, too. I know. Okay. It's coming up, David. Item number two SB 974 on the absentees Quirk Silva
Aye.
Quirk Silva, aye. Rodriguez?
Aye.
Rodriguez, aye. On item number four, SB 762 on the absentees, Rodriguez?
Aye.
Rodriguez, not voting. Item number five, SB 999, absentees, Michelle Rodriguez.
Aye.
Michelle Rodriguez, aye. Sure, just a minute. Let me go through one more time. vote change for Ms. Sanchez AB 999 I can now that's it no because she couldn't change her vote okay great okay great anything else That was to suspense. Revenue Taxation Committee stands adjourned Stands adjourned Thank you. Thank you.