Senate Committee Hearing Notes - January 31, 2012
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January 31, 2012 As part of our continuing series on legislative oversight, the Senate Majority Caucus has compiled the following summaries of hearings conducted in the latter half of January 2012. Senate Committee on Banking & Financial Institutions and Senate Committee on Business, Professions and Economic Development Senate Committee on Transportation and Housing Senate Energy, Utilities and Communications Committee Senate Committee on Banking & Financial Institutions and Senate Committee on Business, Professions and Economic Development Joint Informational Hearing This joint hearing was prompted, in part, by a June 2011 Sacramento Bee investigative report that looked into "hard money" lending fraud in Nevada County. The hearing was intended to address the potential existence of regulatory gaps related to hard money lending that could place consumers in harm's way. Hard money lending typically refers to money lending outside of a traditional financial institution where funds are provided by private investors. Such borrowers are oftentimes unable to obtain credit elsewhere or the borrowers need money in a shorter timeframe than what it may take a traditional lender to fund a loan. The hearing explored the background of the hard money lending system, the regulation (or lack of it) of the industry, whether that regulatory system better protects consumers who obtain hard money loans or those who invest money used for hard money loans and what changes in the law are necessary - if any - under which hard money lenders and brokers raise that money. Also discussed at the hearing were the distinctions between hard money lending and so-called "subprime" lending. Helpful Links Senate Committee on Transportation and Housing The Senate Transportation and Housing Committee reviewed the California Transportation Commission's 2011 Statewide Transportation Needs Study. The overall goal of the study is to develop a coordinated list of transportation projects and programs, and to identify related funding requirements. It is hoped that a coordinated list of transportation projects will allow local, state and regional transportation agencies in California to present a consistent message when communicating statewide needs for preserving, expanding, maintaining and operating the state's transportation system. The study estimated California's ten-year transportation needs to total $538 billion. Committee staff concluded that this year's Needs Assessment was a substantial improvement over past efforts, but what the Needs Assessment lacked was a set of priority investments based on different levels of funding. The Committee is worried that the state needs this prioritization because limited transportation funds may lead to partial funding of the state's overall need. Helpful Links Senate Subcommittee on Olive Oil Production and Emerging Products The Senate Subcommittee on Olive Oil Production and Emerging Products held an informational hearing on olive oil. As the number of olive trees in California has doubled in last two years, olive oil has become a rapidly growing California agricultural export. Industry leaders and academic researchers in the field are seeking state quality standards to ensure that olive oil produced in California is of international acclaim. The committee heard expert testimony from Dan Flynn, Executive Director of the UC Davis Olive Center; Tom Mueller, industry author, including Slippery Business an article published in the New Yorker; Adam Englehardt, Vice President of Orchard Operations for California Olive Ranch; Brady Whitlow, President Corto-Olive; and Jim Etters, the Director of Land Management of the Yocha Dehe Wintun Nation; Brendon Flynn, President of the California Olive Oil Council; Mike Bradley, President Veronica Foods Company; Bob Bauer, President of the North American Olive Oil Association; and Paul Miller, President of the Australian Olive Association, Ltd. Panelists discussed the impacts on California's olive oil industry, quality standards across US regional and international production areas, and significant concerns of fraudulent "extra virgin" labeling. From the growers' standpoint, olive orchards are an efficient crop for California because it requires only a quarter of the water that other crops require. With Australia being a nation that both competes and collaborates with California on many agricultural issues, Paul Miller discussed his country's processes of olive oil inspection and how California may improve its standards to become more consistent with international practices. Helpful Links |
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