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CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY TRUSTEES JOINT REGULAR MEETING Tuesday, April 14, 2015 6:00 PM City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business How to Address the City Council You may address the Council during Public Participation on any matter within the Council's jurisdiction that is not listed on the agenda. Each person wishing to speak should prepare a presentation of not more than three (3) minutes. Public Participation speaker's cards must be submitted to the City Clerk BEFORE this portion of the meeting begins. Public Participation takes place before the consideration of the agenda items and following the consideration of agenda items. However, each person will be allowed to speak only one time during Public Participation per meeting. Anyone wishing to address an item on the agenda should fill out a speaker's card and submit it to the City Clerk BEFORE the Mayor announces the item. Each person addressing the Council is given three (3) minutes to speak indicated by a colored light system on the Council dais; a green light appears when the speaker begins; a yellow light appears when 30 seconds remain and a red light appears when time has expired. Comments should be complete at this time. Each presentation may not exceed three (3) minutes. ______________________________________________________________________________ In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, (661) 255-4391. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28CFR 35.102-35.104 ADA Title II) ______________________________________________________________________________
Transcript
Page 1: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY TRUSTEES JOINT REGULAR MEETING

Tuesday, April 14, 2015 6:00 PM

City Council Chambers

23920 Valencia Blvd. Santa Clarita, CA 91355

AGENDA

PUBLIC FINANCING AUTHORITY – No New Business

How to Address the City Council

You may address the Council during Public Participation on any matter within the Council's jurisdiction that is not listed on the agenda. Each person wishing to speak should prepare a presentation of not more than three (3) minutes. Public Participation speaker's cards must be submitted to the City Clerk BEFORE this portion of the meeting begins. Public Participation takes place before the consideration of the agenda items and following the consideration of agenda items. However, each person will be allowed to speak only one time during Public Participation per meeting.

Anyone wishing to address an item on the agenda should fill out a speaker's card and submit it to the City Clerk BEFORE the Mayor announces the item. Each person addressing the Council is given three (3) minutes to speak indicated by a colored light system on the Council dais; a green light appears when the speaker begins; a yellow light appears when 30 seconds remain and a red light appears when time has expired. Comments should be complete at this time. Each presentation may not exceed three (3) minutes. ______________________________________________________________________________ In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, (661) 255-4391. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28CFR 35.102-35.104 ADA Title II) ______________________________________________________________________________

Page 2: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

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INVOCATION Councilmember Acosta

CALL TO ORDER

ROLL CALL

FLAG SALUTE

EXECUTIVE MEETING This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting.

APPROVAL OF AGENDA – Mayor to inquire whether there are any changes to the Agenda or if any member of the Council or the public would like to pull for discussion, any item on the Consent Calendar.

AWARDS AND RECOGNITIONS Recognition of SCV Sheriff Volunteers Samuel Goldstein and Stephen North

Recognition of College of the Canyons' Cross Country Team

PUBLIC PARTICIPATION This time has been set aside for the public to address the City Council on items NOT listed on the agenda. The City Council will not act upon these items at this meeting other than to review and/or provide direction to staff. All speakers must submit a speaker’s card to the City Clerk PRIOR to the beginning of this portion of the meeting. Thirty minutes are allotted for public input at this time. The FIRST TEN people to submit a speaker card prior to the beginning of Public Participation will be heard. Speaker cards will be accepted beginning at 5:45 p.m. Any speaker cards received once the first speaker has begun will be heard at the end of the meeting regardless if the ten person limit has been met. Speakers may not exceed three (3) minutes and may only be heard once per meeting under Public Participation.

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______________________________________________________________________________

Staff Comments

Committee Reports/Councilmember Comments

CONSENT CALENDAR All matters listed under the Consent Calendar are considered routine and will be enacted by one motion by the City Council. The items are not individually discussed by the City Council unless a request is made by a member of the public or the Council, in which case, the item(s) will be removed from the Consent Calendar and will be considered separately.

______________________________________________________________________________

1. APPROVAL OF MINUTES - The minutes of the Joint City Council and Board of Library Trustees meeting are submitted for approval.

RECOMMENDED ACTION:

City Council and Board of Library Trustees: Approve the minutes of the March 24, 2015, special and regular meetings.

2. LETTER OF SUPPORT FOR THE LOS ANGELES AIR FORCE BASE - As part of President Obama's Federal Fiscal Year 2016 budget proposal, a proposal was included to begin a process of military base closures in 2017 as part of the Base Realignment and Closures (BRAC) program. Concerns have been expressed by Los Angeles Mayor Eric Garcetti, as well as the Los Angeles County Board of Supervisors, that the Los Angles Air Force Base and the Space and Missile Systems Center, located in El Segundo, will be a vulnerable location to be realigned or closed as part of the anticipated BRAC process.

RECOMMENDED ACTION:

City Council adopt the recommendation of the City Council Legislative Subcommittee to support the continued operation of the Los Angeles Air Force Base and the Space and Missile Systems Center and transmit letters of support to the Secretary of Defense, Secretary of the Air Force, Santa Clarita’s federal legislative delegation, Los Angeles Mayor Eric Garcetti, and the Los Angeles County Board of Supervisors.

3. STATE LEGISLATION: ASSEMBLY BILL 266 - This bill would establish a state-wide regulatory structure for medical marijuana by establishing the Bureau of Medical Marijuana Regulation within the Department of Consumer Affairs to issue conditional licenses for medical marijuana facilities. The bill preserves local authority by providing local governments with the ability to suspend, revoke, and ban medical marijuana dispensaries within their jurisdiction.

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RECOMMENDED ACTION:

City Council adopt the recommendation of the City Council Legislative Subcommittee to support Assembly Bill 266 (Cooley), related to the regulation of medical marijuana, and transmit letters of support to Assembly Member Ken Cooley, Santa Clarita’s state legislative delegation, appropriate legislative committees, Governor Brown, and the League of California Cities.

4. STATE LEGISLATION: ASSEMBLY BILL 46 - Assembly Bill 46 seeks to increase the penalty for possession of controlled substances commonly referred to as “date rape” drugs from misdemeanors for individuals without prior convictions, to either a misdemeanor or felony, which was reduced to a misdemeanor with the passage of Proposition 47 on November 4, 2014.

RECOMMENDED ACTION:

City Council adopt the recommendation of the City Council Legislative Subcommittee to support Assembly Bill 46 (Lackey), which increases penalties for possession of controlled substances commonly referred to as “date rape” drugs, and transmit letters of support to Assembly Member Tom Lackey, Santa Clarita’s state legislative delegation, appropriate legislative committees, Governor Brown, and the League of California Cities.

5. GOVERNOR BROWN'S REDEVELOPMENT DISSOLUTION PROPOSAL - Governor Jerry Brown recently released a draft proposal related to the dissolution of redevelopment agencies, which is anticipated to be included within a budget trailer bill. The proposed language strengthens the authority and limits the accountability of the Department of Finance by reversing court decisions regarding the redevelopment dissolution process, changing laws retroactively, undoing previous incentives, and limiting transparency, accountability and opportunities for local agencies to protect their legal rights.

RECOMMENDED ACTION:

City Council adopt the recommendation of the City Council Legislative Subcommittee to oppose Governor Brown’s Redevelopment Dissolution Proposal and transmit letters of opposition to Governor Brown, Santa Clarita’s state legislative delegation, appropriate legislative committees, and the League of California Cities.

6. STATE LEGISLATION: ASSEMBLY BILL 278 - This bill would require a district-based election to be imposed for the election of the members of the governing body of cities with a population of 100,000 or more, based upon the latest census.

RECOMMENDED ACTION:

City Council adopt the City Council Legislative Subcommittee's recommendation of an "oppose" position for Assembly Bill 278 (Hernandez) and transmit position statements to Assembly Member Hernandez, Santa Clarita’s state legislative delegation, appropriate legislative committees, Governor Brown, and the League of California Cities.

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7. JOHN RUSSELL DRIVE PEDESTRIAN BRIDGE REPLACEMENT, PROJECT S1042 - AWARD CONSTRUCTION CONTRACT - This project will replace the existing timber pedestrian bridge crossing John Russell Drive with a prefabricated steel-truss bridge.

RECOMMENDED ACTION:

City Council: 1. Approve the plans and specifications for the John Russell Drive Pedestrian Bridge

Replacement, Project S1042.

2. Award the construction contract to Toro Enterprises, Inc., in the amount of $429,419, and authorize a contingency in the amount of $42,942, for a total contract amount not to exceed $472,361.

3. Appropriate $50,000 from Landscape Maintenance District Zone T-7 (357) Fund

Balance into account S1042357-5161.001. 4. Authorize the City Manager or designee to execute all necessary documents, subject

to the approval of the City Attorney.

8. RESOLUTION TO RESTRICT COMMERCIAL VEHICLE USE ON SAND CANYON ROAD BETWEEN SIERRA HIGHWAY AND SOLEDAD CANYON ROAD - This resolution proposes restricting commercial vehicles with three (3) or more axles or a gross combination vehicle weight rating of 9,000 pounds or more that is consistent with the Los Angeles County Board of Supervisors direction to improve safety on Sand Canyon Road between Sierra Highway and Soledad Canyon Road due to the narrow width and winding configuration of the roadway.

RECOMMENDED ACTION:

City Council adopt a resolution restricting commercial vehicle use on Sand Canyon Road between Sierra Highway and Soledad Canyon Road.

9. RENEWAL OF SUPPORT FOR SANTA CLARITA VALLEY ECONOMIC DEVELOPMENT CORPORATION (SCVEDC) TO CONTINUE FUNDING FOR THREE YEARS - Staff recommends the City Council approve the renewal of support for the Santa Clarita Valley Economic Development Corporation for business attraction and retention activities, and continue funding for three years.

RECOMMENDED ACTION:

City Council: 1. Authorize expenditures for the renewal of support for the Santa Clarita Valley

Economic Development Corporation (SCVEDC) from the Economic Development budget (Account Number 11301-5171.005), for three consecutive fiscal years (FY 2015/2016, FY 2016/2017, and FY 2017/2018), in the amount of $200,000 annually.

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2. Authorize the City Manager or his designee to negotiate and execute a three-year

renewal agreement with the SCVEDC, subject to City Attorney approval.

10. MODIFICATION OF URBAN FORESTRY CONTRACT - Staff is requesting approval to increase the expenditure authority of Stay Green Inc's. contract in order to maintain regular tree-pruning maintenance and continue performing extra tree work as necessary for City capital projects.

RECOMMENDED ACTION:

City Council:

1. Amend the City’s contract with Stay Green, Inc. (Contract No. 13-00341) for City-wide tree maintenance services, by authorizing an ongoing expenditure increase of $240,000, for a total contract amount not to exceed $1,093,550, plus Consumer Price Index adjustments.

2. Authorize the City Manager or designee to execute all documents subject to City Attorney final document approval, contingent upon the appropriation of funds by the City Council, in the annual budget for such fiscal year.

11. CHECK REGISTER NO. 7 FOR THE PERIOD 03/06/15 THROUGH 03/19/15 AND 03/26/15. ELECTRONIC FUNDS TRANSFERS FOR THE PERIOD 03/13/15 THROUGH 03/26/15. - Check Register No. 7 for the Period 03/06/15 through 03/19/15 and 03/26/15. Electronic Funds Transfers for the Period 03/13/15 through 03/26/15.

RECOMMENDED ACTION:

City Council approve and ratify for payment the demands presented in Check Register No. 7.

PUBLIC PARTICIPATION This time has been set aside for any speakers that have turned in speaker cards and were not heard in the first thirty minutes allotted to address the City Council on items that are NOT on the agenda. No further speaker cards will be accepted once Public Participation begins. Speakers may not address items that have been considered this evening. Speaker cards may not be submitted relating to any items listed on the agenda.

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STAFF COMMENTS

ADJOURNMENT In memory of Donna Milota, Ethel Forinash, and Cindy Newhall-Weyant

FUTURE MEETINGS The next Joint Regular Meeting of the City Council will be held Tuesday, April 28, 2015, at 6:00 p.m. in the Council Chambers, 1st floor of City Hall, 23920 Valencia Blvd., Santa Clarita, CA.

CERTIFICATION I, Kevin Tonoian, City Clerk, do hereby certify that I am the duly appointed and qualified City Clerk for the City of Santa Clarita and that on April 9, 2015, between the hours of 9:00 a.m. and 5:00 p.m., the foregoing agenda was posted at City Hall and the Santa Clarita Sheriff's Station.

_______________________________________ Kevin Tonoian City Clerk Santa Clarita, California

Page 8: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

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Agenda Item: 1

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: APPROVAL OF MINUTES

DEPARTMENT: Administrative Services

PRESENTER: Kevin Tonoian

RECOMMENDED ACTION

City Council and Board of Library Trustees: Approve the minutes of the March 24, 2015, special

and regular meetings.

BACKGROUND

The minutes from the previous City Council and Joint City Council/Board of Library Trustees

meetings are submitted for approval.

ALTERNATIVE ACTION

Amendments to the minutes may be approved as necessary.

FISCAL IMPACT

None by this action.

ATTACHMENTS

March 24, 2015 Special Meeting Minutes

March 24, 2015 Regular Meeting Minutes

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Page 9: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

City Council

Special Meeting

~ Minutes ~

Tuesday, March 24, 2015 5:30 PM City Council Chambers

CALL TO ORDER

The meeting was called to order at 5:30 p.m. by Mayor McLean

ROLL CALL

All Councilmembers were present.

PUBLIC PARTICIPATION

No requests to speak were received.

CLOSED SESSION

Joseph Montes, City Attorney, advised of the need to conduct a Closed Session for the purpose

of holding a:

CONFERENCE WITH PROPERTY NEGOTIATOR

Government Code Section 54956.8

93 +/- acres in Placerita Canyon

Assessor’s Parcel Nos. 2848-012-086 and 2848-008-001

Negotiating Parties: Prucres, Inc. and MP Property Partners

City’s Authorized Negotiator: City Manager

Under Negotiation: Price and Terms of Payment

RECESS TO CLOSED SESSION

Mayor McLean recessed the meeting to Closed Session at 5:31 p.m.

RECONVENE TO OPEN SESSION

Mayor McLean reconvened the meeting at 6:13 p.m.

CITY ATTORNEY ANNOUNCEMENT

Joseph Montes, City Attorney, announced that no action was taken in Closed Session that was

required to be reported.

ADJOURN

Mayor McLean adjourned the meeting at 6:13 p.m.

______________________________________

ATTEST: MAYOR

______________________________________

CITY CLERK

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Page 10: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

CITY OF SANTA CLARITA

City Council / Board of Library Trustees

Joint Regular Meeting

~ Minutes ~

Tuesday, March 24, 2015 6:00 PM City Council Chambers

INVOCATION

Councilmember Weste delivered the invocation.

CALL TO ORDER

Mayor/President McLean called to order the regular joint meeting of the City Council/Board of

Library Trustees at 6:14 p.m.

ROLL CALL

All Councilmembers were present.

FLAG SALUTE

Councilmember Weste led the flag salute.

EXECUTIVE MEETING

This time has been set aside for Councilmembers to review the agenda and obtain any further

information that may be needed. Council will also discuss each individual item during the course

of the meeting with the exception of the Consent Calendar, which may be approved in its entirety

by one motion, unless there is a request to pull an item for discussion. No action will be taken on

public agenda items during the Executive Meeting.

APPROVAL OF AGENDA

Motion by Kellar, second by Weste, to approve the agenda, pulling item 2 for public

comment and items 4 and 6 for Council comment.

Hearing no objections, it was so ordered.

AWARDS AND RECOGNITIONS

Mayor McLean and Council proclaimed April 11, 2015, as Arbor Day.

Abigail Srader of Cal Fire spoke on behalf of Arbor Foundation and presented the City with the

Tree City USA Award.

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PUBLIC PARTICIPATION

Addressing the Council was Elaine Ballace regarding senior representation; Alan Ferdman,

representing Canyon Country Advisory Committee, regarding water resources; Cliff Bigler

regarding fracking; Debbie Eaton regarding building a local bicycle motocross (BMX) track;

Steve Petzold, regarding various matters; Candy Greer regarding building a local BMX track;

Cam Noltemeyer regarding DWI sites; David Delawder regarding Bus 797 service; Anastasia

Gonchartio regarding building a local BMX track; and Dennis Conn regarding the riverbed

clean-up.

STAFF COMMENTS

City Manager Ken Striplin made comment regarding Council's advocacy and financial support of

the senior community, including affordable housing; stated that City staff will analyze the

fracking information provided by Mr. Bigler; indicated a BMX track is a part of the Santa Clarita

Sports Complex Master Plan; and made comments regarding Transit efficiencies.

Mayor Pro Tem Kellar requested that City Manager Ken Striplin provide clarification regarding

extensive community meetings to address the Manufactured Home ordinance update.

Councilmember Boydston requested that staff look into rules and regulations on use of gray

water.

Mayor Pro Tem Kellar commented regarding the City's concerted effort to use recycled water for

irrigation.

Councilmember Weste commented regarding Castaic Lake Water Agency’s plan for recycled

water; and new technologies available for gray water.

COMMITTEE REPORTS/COUNCILMEMBER COMMENTS

Councilmember Boydston thanked KHTS for the recent legislative trip to Sacramento;

commented regarding the Golden Valley Bridge expansion; encouraged residents to participate

in the Arts Master Plan survey and invited the community to attend the Arts planning meeting on

April 6.

Councilmember Acosta commented regarding the KHTS legislative trip; commented on meeting

with a local Homeowners Association, along with Captain Johnson, regarding the transient issue;

commented on his support of the installation of a BMX track; and on behalf of his family,

thanked the community for their support.

Councilmember Weste commented on the new Golden Valley Bridge bike path planned over the

14 freeway; and commented on attending Passover Seder dinner with Sisterhoods of Temple

Beth Ami and Congregation Beth Shalom.

Mayor McLean thanked KHTS for sponsoring the trip to Sacramento; indicated she met with the

Chief Environmental Aide regarding state mandates and requested a moratorium on chloride

fines, and discussed the California Earthquake Authority (CEA) policy regarding DWI;

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commented regarding the Sheltered Hope Pet Shop opening; attended a play at Valencia High

School entitled "Martin Duty Calls"; presented certificates to student volunteers during the 28th

Annual Safe Rides celebration; commented on the future improvements of the Golden Valley

Bridge expansion; urged residents to send in their postcards to keep the Newhall Post Office in

Newhall; and requested that the meeting be adjourned in memory of Carol Kieczykowski.

CONSENT CALENDAR

RESULT: APPROVED [UNANIMOUS] MOVER: Bob Kellar, Mayor Pro Tem

SECONDER: TimBen Boydston, Councilmember

AYES: Acosta, Boydston, Kellar, Weste, McLean

ITEM 1

APPROVAL OF MINUTES

The minutes of the Joint City Council and Board of Library Trustees meeting are submitted for

approval.

RECOMMENDED ACTION:

City Council and Board of Library Trustees: Approve the minutes of the March 10, 2015, special

and regular meetings.

ITEM 2

SEWER SYSTEM MANAGEMENT PLAN (SSMP) - STATEWIDE GENERAL WASTE

DISCHARGE REQUIREMENTS FOR SANITARY SEWER SYSTEMS

City Council re-approve and re-certify the Sewer System Management Plan document to remain

in compliance with the terms of the California Water Resources Control Board permit.

RECOMMENDED ACTION:

City Council:

1. Approve the proposed updated Sewer System Management Plan.

2. Authorize the City Manager or designee to make future operational changes, as needed, that

do not have a financial impact to comply with Waste Discharge Requirements.

Addressing the Council was Cam Noltemeyer.

ITEM 3

RAILROAD AVENUE BIKE TRAIL DESIGN CONCEPT, PROJECT T2011 - AWARD

CONTRACT

Railroad Avenue Bike Trail Design Concept will study the proposed Class 1 bike trail along the

east side of Railroad Avenue from Lyons Avenue to Oak Ridge Drive.

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RECOMMENDED ACTION:

City Council:

1. Award contract for the Railroad Avenue Bike Trail Design Concept, Project T2011, to MNS

Engineers, Inc., in the amount of $144,798.

2. Authorize the City Manager or designee to execute the contract, subject to City Attorney

approval.

ITEM 4

ACQUISITION OF 173.54 +/- ACRES OF REAL PROPERTY, VACANT LAND,

ASSESSORS PARCEL NO. 2826-020-056 AND 062

Acquisition of this property will enhance the City's on-going efforts to preserve open space lands

and improve trail connectivity throughout the Newhall Pass.

RECOMMENDED ACTION:

City Council:

1. Approve the purchase of 173.54 +/- acres of real property, vacant land, Assessor’s Parcel No.

2826-020-056 and 062, for open space preservation, at a total cost of $1,910,000, which

includes the property purchase price of $1,850,000, and $20,000 for escrow, title, surveying

fees and due diligence costs, $30,000 for trail improvements including fencing and signs, and

$10,000 annually for property taxes.

2. Appropriate $1,870,000 from the Open Space Preservation District Fund Balance (Fund 358)

to Open Space Preservation District Expenditure Account 12592-5201.004.

3. Appropriate $30,000 from Open Space Preservation District Fund Balance (Fund 358) to

Open Space Preservation District Expenditure Account 12592-5161.002 for the purpose of

property improvements, including signage, gates, and trail clean-up.

4. Appropriate $10,000 as an on-going annual expenditure from Open Space Preservation

District Fund Balance (Fund 358) to Open Space Preservation District Expenditure Account

12592-5185.003 for the payment of annual property taxes.

5. Authorize the City Manager, or designee, to execute all documents, subject to City Attorney

approval.

Mayor McLean requested, and Council concurred for staff to pursue annexation of this property

into the City, if possible.

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ITEM 5

NORTH OAKS PARK AND VALENCIA GLEN PARK POOL RENOVATIONS,

PROJECT M0106 - APPROVE PLANS AND SPECIFICATIONS AND AWARD

CONSTRUCTION CONTRACT

The North Oaks and Valencia Glen Park Pools were built in 1969 and 1970 and the facilities

need several significant renovations to keep both pools operating safely and efficiently.

RECOMMENDED ACTION:

City Council:

1. Approve the plans and specifications for North Oaks and Valencia Glen Park Pool

Renovations, Project M0106.

2. Award the construction contract to A.M.G., Inc., in the amount of $184,694, plus additive

alternates one and two in the amount of $7,950, and authorize a contingency in the amount of

$27,704, for a total contract amount not to exceed $220,348.

3. Authorize the transfer of project savings in the amount of $17,959 in General Capital

Projects Fund (Fund 601) from SCSC Aquatic Center Pool Deck Repair project, expenditure

account M3023601-5161.001, to North Oaks Park Pool and Valencia Glen Park Pool

Renovations, expenditure account M0106601-5161.001.

4. Authorize the transfer of project savings in the amount of $10,225 in Facilities Replacement

Fund (Fund 723) from Central Park Sportsfields, Phase III project, expenditure account

P4012723-5161.001 to North Oaks Park Pool and Valencia Glen Park Pool Renovations,

expenditure account M0106723-5161.001.

5. Authorize the transfer of project savings in the amount of $27,164 in General Capital

Projects Fund (Fund 601) from Central Park Sportsfields, Phase III project, expenditure

account P4012601-5161.001 to North Oaks Park Pool and Valencia Glen Park Pool

Renovations, expenditure account M0106601-5161.001.

6. Authorize the City Manager, or designee, to execute all documents, subject to City Attorney

approval.

ITEM 6

AWARD CONTRACT FOR BID NO. LMD-14-15-13 FOR IRRIGATION

CONTROLLER REPLACEMENT

Award a contract to ValleyCrest Landscape Maintenance for an amount not to exceed $339,449

for the purchase and installation of eighty (80) smart irrigation controllers to support operations

in Landscape Maintenance District Zones transferred to the City of Santa Clarita from Los

Angeles County in 2012.

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Page 15: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

Page 6

RECOMMENDED ACTION:

City Council:

1. Award contract to ValleyCrest Maintenance Landscape to procure and install 80

WeatherTrack Irrigation controllers for $308,590, and authorize a 10 percent contingency in

the amount of $30,859, for a total amount of not to exceed $339,449.

2. Authorize the City Manager or designee to modify the award in the event that issues of

impossibility of performance arise, subject to the City Attorney approval.

Mayor McLean commented on the installation of smart irrigation controllers, allowing the City

to save one-billion gallons of water over the last four years.

Councilmember Boydston commented that turf medians should not get water until the drought is

over.

ITEM 7

CHECK REGISTER NO. 6 FOR THE PERIOD 02/20/15 THROUGH 03/05/15 AND

03/12/15. ELECTRONIC FUNDS TRANSFERS FOR THE PERIOD 02/27/15 THROUGH

03/12/15.

Check Register No. 6 for the Period 02/20/15 through 03/05/15 and 03/12/15.

Electronic Funds Transfers for the Period 02/27/15 through 03/12/15.

RECOMMENDED ACTION:

City Council approve and ratify for payment the demands presented in Check Register No. 6.

NEW BUSINESS

ITEM 8

RED-LIGHT PHOTO ENFORCEMENT PROGRAM

The City Council extended the contract with Redflex Traffic Systems, Inc., on a month-to-month

basis for up to one year and directed staff to further evaluate the Red-Light Photo Enforcement

Program and report back within 12 months. The existing contract term expires March 31, 2015.

RECOMMENDED ACTION:

City Council receive report and discuss alternatives for the City of Santa Clarita’s Red-Light

Photo Enforcement Program.

City Traffic Engineer Andrew Yi presented information regarding the Red-Light Photo

Enforcement Program.

Addressing the Council was Scott Dwyer; Jennifer Pack; Steve Petzold; Rosine Taylor-White;

Jay Beeber, Executive Director of Safer Streets LA; and James Farley.

One written comment card was received.

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Mayor Pro Tem Kellar commented on his decision to no longer support the program and

indicated his supports for alternative action #3.

Councilmember Acosta commented on his preference for deputies to provide enforcement at

intersections; and commented on supporting alternative action #3.

Councilmember Weste commented that the program's intent is safety, behavior is a direct result

of the cameras; and commented on supporting the program for two additional years.

Councilmember Boydston made inquiries of City Traffic Engineer Andrew Yi; and moved in

favor of alternative action #3. The motion was seconded by Mayor Pro Tem Kellar.

Mayor McLean requested clarification from Public Works Director Robert Newman and City

Traffic Engineer Andrew Yi regarding costs for deputies, the red-light camera enforcement, and

rear-end collisions; and asked staff about alternatives to Redflex contract.

Mayor McLean and Councilmember Weste requested information on the possibility of

suspending the program, but keeping the camera equipment as an option.

Redflex representative Darren Kolack, discussed options available to the City.

Mayor McLean requested a substitute motion to suspend the red-light photo enforcement

program for one year. Mayor Pro Tem Kellar and Councilmember Boydston called for the

question.

Motion to approve Alternative Action #3: Allow expiration of the current contract with

Redflex Traffic Systems, Inc., and discontinue the Red-Light Photo Enforcement Program.

Authorize final payment for fees owed to Redflex Traffic Systems, Inc., through contract

expiration.

RESULT: APPROVED [3 TO 2] MOVER: TimBen Boydston, Councilmember

SECONDER: Bob Kellar, Mayor Pro Tem

AYES: Dante Acosta, TimBen Boydston, Bob Kellar

NAYS: Laurene Weste, Marsha McLean

Mayor McLean recessed the meeting at 8:18 p.m. and reconvened at 8:26 p.m.

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ITEM 9

LOS ANGELES REGIONAL INTEROPERABLE COMMUNICATIONS SYSTEM

TELECOMMUNICATIONS TOWERS

The Los Angeles Regional Interoperable Communications System (LA-RICS) has informed the

City of the planned installation of seven LA-RICS wireless telecommunications facilities on

County-owned properties within the City.

RECOMMENDED ACTION:

City Council:

1. Request Los Angeles Regional Interoperable Communications System (LA-RICS) to conduct

public outreach to nearby residents and property owners of all proposed LA-RICS

telecommunications tower sites within the City of Santa Clarita, and to respond to, address

and remediate concerns raised thereto.

2. Request LA-RICS to consider an alternative site location for the proposed tower at Fire

Station 108 based on testimony received by nearby property owners opposed to this proposed

tower.

3. Request the Los Angeles County Board of Supervisors take action to prohibit the co-location

of commercial (non-governmental) communication equipment at LA-RICS towers.

4. Adopt a resolution withdrawing the City of Santa Clarita from membership in the LA-RICS

Joint Powers Authority.

Justice Deputy Anna Moradian, representing Mayor Antonovich, provided the Council with an

update on the Los Angeles County Board of Supervisors (BOS) action on March 24, 2015, where

the BOS authorized a five signature letter and outlined four directions given by the BOS to LA-

RICS Joint Powers Authority.

Deputy City Manager Darren Hernández presented information on this item to Council.

Addressing the Council was Anthony Benitez, representing the Pacific Crest community; Gordon

Firemark; Lew Currier, representing Los Angeles County Firefighter Local 1014; and Marianne

Ford.

Mayor Pro Tem Kellar moved the recommended action and Councilmember Acosta seconded

the motion.

Councilmember Weste made a recommendation to add stronger language to communication with

the BOS by declaring that the City is opposed to all LA-RICS cell tower locations within the

City of Santa Clarita.

Councilmember Boydston and Mayor Pro Tem Kellar concurred with Councilmember Weste's

recommendation.

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Councilmember Weste moved to oppose the location of LA-RICS telecommunication

towers anywhere in Santa Clarita; and adopt Resolution No. 15-09, withdrawing the City

of Santa Clarita from membership in the LA-RICS Joint Powers Authority.

RESULT: APPROVED [UNANIMOUS] MOVER: Laurene Weste, Councilmember

SECONDER: Dante Acosta, Councilmember

AYES: Acosta, Boydston, Kellar, Weste, McLean

PUBLIC PARTICIPATION II

Addressing the Council was Dr. Jeremy Newman, regarding 72 hour waiting period for towed

vehicles; Kirk Landeen, regarding a local BMX track; Christian Gadbois, regarding a local BMX

track; and James York, regarding a local BMX track.

STAFF COMMENTS

City Manager Ken Striplin made comment regarding the Sports Complex Master Plan which

identifies the need for a BMX track in addition to sports fields and other community recreational

needs; and indicated staff would provide the Council with a report via memo regarding the

vehicle towing issue.

Councilmember Boydston inquired about Sports Tourism and BMX tracks.

ADJOURNMENT

Mayor McLean adjourned the meeting in memory of Carol Kieczykowski at 9:14 p.m.

______________________________________

ATTEST: MAYOR

______________________________________

CITY CLERK

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Agenda Item: 2

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: LETTER OF SUPPORT FOR THE LOS ANGELES AIR FORCE

BASE

DEPARTMENT: City Manager's Office

PRESENTER: Matthew Levesque

RECOMMENDED ACTION

City Council adopt the recommendation of the City Council Legislative Subcommittee to support

the continued operation of the Los Angeles Air Force Base and the Space and Missile Systems

Center and transmit letters of support to the Secretary of Defense, Secretary of the Air Force,

Santa Clarita’s federal legislative delegation, Los Angeles Mayor Eric Garcetti, and the Los

Angeles County Board of Supervisors.

BACKGROUND

As part of President Obama's Federal Fiscal Year 2016 budget proposal, an item was included to

begin a process of military base closures in 2017 as part of the Base Realignment and Closures

(BRAC) program. Concerns have been expressed by Los Angeles Mayor Eric Garcetti, as well as

the Los Angeles County Board of Supervisors, that the Los Angles Air Force Base and the Space

and Missile Systems Center, located in El Segundo, will be a vulnerable location to be realigned

or closed as part of the anticipated BRAC process.

On February 2, 2015, Mayor McLean attended Los Angeles Mayor Eric Garcetti’s meeting for

Los Angeles County Mayors. Mayor Garcetti encouraged mayors throughout Los Angeles

County to send letters of support for the Los Angeles Air Force Base and the Space and Missile

Systems Center to the Secretary of Defense and the Secretary of the Air Force. Additionally, on

February 6, 2015, a five signature letter from the Los Angeles County Board of Supervisors was

sent to Mayor McLean requesting the City Council indicate their in support of the Los Angeles

Air Force Base and the Space and Missile Systems Center.

The Los Angeles Air Force Base and the Space and Missile Systems Center plays an important

role in Los Angeles County’s defense and aerospace industry. The base directly employs 5,800

military and civilian personnel. Additionally, approximately 11,800 jobs are created through

contract work generated from the base.

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Aerospace and defense manufacturing is a target industry for the Santa Clarita Valley. Currently

there are 18 aerospace and defense manufacturers in the Santa Clarita Valley responsible for

providing an estimated 1,370 jobs. It is common for these companies to subcontract with larger

aerospace and defense contractors that work closely with the Los Angeles Air Force Base, such

as Boeing, Northrop Grumman, and Raytheon.

The City Council Legislative Subcommittee met on March 10, 2015, and recommends that the

City Council adopt a position of support for the Los Angeles Air Force Base and the Space and

Missile Systems Center.

ALTERNATIVE ACTION

1. Take no position on the Los Angeles Air Force Base and the Space and Missile Systems

Center

2. Refer the item back to the Legislative Subcommittee

3. Other direction as determined by the City Council

FISCAL IMPACT

No additional resources, beyond those contained within the adopted FY 2014/15 City budget, are

required for implementation of the recommended action.

ATTACHMENTS

Signed Letter of Support from Los Angeles County Mayors

Letter from Los Angeles County Board of Supervisors

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Agenda Item: 3

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 266

DEPARTMENT: City Manager's Office

PRESENTER: Matthew Levesque

RECOMMENDED ACTION

City Council adopt the recommendation of the City Council Legislative Subcommittee to support

Assembly Bill 266 (Cooley), related to the regulation of medical marijuana, and transmit letters

of support to Assembly Member Ken Cooley, Santa Clarita’s state legislative delegation,

appropriate legislative committees, Governor Brown, and the League of California Cities.

BACKGROUND

Assembly Bill 266 (AB 266) was introduced by Assembly Member Ken Cooley (D-8-Rancho

Cordova) on February 10, 2015. Existing law, the Compassionate Use Act of 1996, an initiative

measure enacted by the approval of Proposition 215 at the November 6, 1996, statewide general

election, authorizes the use of marijuana for medical purposes. Existing law enacted by the

Legislature requires the establishment of a program for the issuance of identification cards to

qualified patients so that they may legally use marijuana for medical purposes and requires the

establishment of guidelines for the lawful cultivation of marijuana grown for medical use.

AB 266 would require the Department of Consumer Affairs (DCA) to establish a Bureau of

Medical Marijuana Regulation to conduct background checks and issue conditional licenses to

dispensing facilities and cultivation sites that provide, process, transport, and grow marijuana for

medical use. AB 266 upholds the authority of local governments to ban the operation of medical

marijuana dispensaries within their jurisdiction by making the issuance of facility operating

licenses subject to the restrictions of the local jurisdiction in which the facility operates, or

proposes to operate, and specifies that even if a conditional license has been granted by the state,

local governments maintain control over the suspension and revocation of licenses. The bill

would also establish uniform health and safety standards for licensed dispensing facilities and

transporters and allow employees and owners of licensed facilities to form labor peace

agreements.

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On March 11, 2008, the Santa Clarita City Council adopted Ordinance No. 08-02, replacing the

City’s temporary moratorium on medical marijuana dispensaries operating within the City of

Santa Clarita with an outright prohibition. Since the City Council adopted Ordinance No. 08-02,

there have been several attempts in the State Legislature with the intention of preempting local

control in areas such as municipal zoning, permit decisions, and operating licenses. AB 266

safeguards the right of local governments to decide whether to regulate or prohibit medical

marijuana cultivation and distribution within their jurisdiction.

AB 266 was referred to the Assembly Committee on Business and Professions and the Assembly

Committee on Labor and Employment on March 9, 2015.

The League of California Cities is a coauthor with the California Police Chiefs Association of

AB 266. If enacted, AB 266 will preserve the City of Santa Clarita’s outright prohibition of

medical marijuana dispensaries.

During the City Council Legislative Subcommittee meeting on March 10, 2015, Councilmember

Boydston asked for clarification on two sections within AB 266 regarding the bill's proposed

changes to the California Labor Code and the restrictions the bill would place on Public Records

Act requests. Staff has inquired with the League of California Cities, a coauthor of the

legislation, for clarification on these sections.

The first section in which clarification was requested was Section 8 on page 38 regarding

amendments the proposed legislation would make to the California Labor Code relating to

agricultural employers. Under the proposed bill, employees of licensed medical marijuana

dispensaries and cultivations sites would be considered agricultural employees and have the

ability to join labor organizations; however, the bill requires that labor peace agreements be

established to prevent workplace stoppages that would otherwise interfere with the operations of

the business. Additionally, business owners would agree to not interfere with a labor

organization’s efforts to represent employees.

The second section in which clarification was requested was Section 12 on page 39 regarding

limitations the legislation would impose on the public’s right to access public meetings and

agency information under the Public Records Act. AB 266 explains that any limitations placed

on access to public information are due to restrictions placed on the confidentiality of medical

information under the federal Health Insurance Portability and Accountability Act (HIPAA).

Under existing constitutional provisions, anytime an item of legislation would limit the

disclosure of information under the Public Records Act, the statute that limits the right to access

that information must be adopted in conjunction with findings that demonstrate the need for the

limitation. The inclusion of Section 12 on page 39 is to ensure the legislation protects

confidential medical information in order to avoid a HIPPA violation.

The City Council Legislative Subcommittee recommends that the City Council adopt a “support”

position for AB 266.

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ALTERNATIVE ACTION

1. Adopt an "oppose” position on AB 266

2. Take no position on AB 266

3. Refer AB 266 back to the Legislative Subcommittee

4. Other direction as determined by the City Council

FISCAL IMPACT

No additional resources, beyond those contained within the adopted FY 2014/15 City budget, are

required for implementation of the recommended action.

ATTACHMENTS

Assembly Bill 266 as Introduced February 10, 2015

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california legislature—2015–16 regular session

ASSEMBLY BILL No. 266

Introduced by Assembly Member Cooley(Coauthor: Assembly Member Lackey)

February 10, 2015

An act to amend Section 2220.05 of, to add Article 25 (commencingwith Section 2525) to Chapter 5 of Division 2 of, and to add Part 5(commencing with Section 18100) to Division 7 of, the Business andProfessions Code, to add Section 23028 to the Government Code, toamend Section 11362.775 of, and to add Article 8 (commencing withSection 111658) to Chapter 6 of Part 5 of Division 104 of, the Healthand Safety Code, and to amend Section 1155.7 of, and to add Sections1158.5 and 3094 to, the Labor Code, relating to medical marijuana, andmaking an appropriation therefor.

legislative counsel’s digest

AB 266, as introduced, Cooley. Medical marijuana.(1)  Existing law, the Compassionate Use Act of 1996, an initiative

measure enacted by the approval of Proposition 215 at the November6, 1996, statewide general election, authorizes the use of marijuana formedical purposes. Existing law enacted by the Legislature requires theestablishment of a program for the issuance of identification cards toqualified patients so that they may lawfully use marijuana for medicalpurposes, and requires the establishment of guidelines for the lawfulcultivation of marijuana grown for medical use. Existing law providesfor the licensure of various professions by the Department of ConsumerAffairs. Existing law, the Sherman Food, Drug, and Cosmetic Law,provides for the regulation of food, drugs, devices, and cosmetics, asspecified. A violation of that law is a crime.

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This bill would establish within the Department of Consumer Affairsa Bureau of Medical Marijuana Regulation, under the supervision andcontrol of the Chief of the Bureau of Medical Marijuana Regulation,and would require the bureau to license and regulate dispensingfacilities, cultivation sites, transporters, and manufacturers of medicalmarijuana and medical marijuana products, subject to local ordinances.The bill would require a background check of applicants for licensure,as defined, to be administered by the Department of Justice, andsubmission of a statement signed by an applicant, under penalty ofperjury, that the information on his or her application is true, therebycreating a crime and imposing a state-mandated local program. Violationof the provisions related to applying for a conditional license would bepunishable by a civil fine of up to $35,000 for each individual violation,or as otherwise specified.

The bill would make conditional licenses subject to the restrictionsof the local jurisdiction in which the facility operates or proposes tooperate. The bill would set forth provisions related to the transportation,testing, and distribution of medical marijuana. The bill would prohibitthe distribution of any form of advertising for physicianrecommendations for medical marijuana, unless the advertisement bearsa specified notice and requires that the advertisement meet specifiedrequirements and not be fraudulent, deceitful, or misleading.

The bill would establish a system, including apprenticeship andcertification, for cannabis employees. The bill would require theDivision of Labor Standards Enforcement to maintain and enforceminimum standards of competency and training and to certify cannabisemployees. The bill would require the division to establish a cannabiscurriculum certification committee to establish educational curriculumstandards and to oversee educational providers of cannabis curriculum.The bill would require the Division of Occupational Health and Safetyto develop industry-specific regulations for facilities issued a conditionallicense and would specify that those regulations govern agreementsbetween a facility issued a conditional license and labor.

The bill would establish the Medical Marijuana Regulation Fund andwould require the deposit of specified fees collected pursuant to thisact into the fund. The bill would continuously appropriate moneys fromthe fund to the bureau for the purposes of administering this act, therebymaking an appropriation. The bill would also establish the SpecialAccount for Environmental Enforcement within the Medical MarijuanaFund. This account would contain money from fees assessed against

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licensed cultivation facilities and would be continuously appropriatedfor the enforcement of environmental regulations relating to licensedcultivation sites. The bill would require the deposit of penalty moneyscollected pursuant to this bill into the General Fund.

The bill would provide that it shall not supersede provisions ofMeasure D, as approved by the voters of the City of Los Angeles, asspecified.

The bill would authorize a city, county, or city and county toadminister and enforce these provisions. The bill would require thebureau to establish quality assurance protocols by July 1, 2017, to ensureuniform testing standards of medical marijuana, and would requirelicensees to comply with these provisions. The bill would further setforth provisions regulating edible medical marijuana products, asspecified. By adding these provisions to the Sherman Food, Drug, andCosmetic Law, a violation of which is a crime, the bill would imposea state-mandated local program.

(2)  Existing law establishes the Division of Apprenticeship Standards,which audits and regulates apprenticeship programs for various trades,including electricians.

This bill would require the division to investigate, approve, or rejectapplications for apprenticeship employees of a licensed cultivation siteor a licensed dispensing facility, as defined.

(3)  Existing law, the Medical Practice Act, provides for the licensureand regulation of physicians and surgeons by the Medical Board ofCalifornia. Existing law requires the board to prioritize investigationsand prosecutions of physicians and surgeons representing the greatestthreat of harm, as specified. Existing law identifies the cases that areto be given priority, which include cases of repeated acts of excessivelyprescribing, furnishing, or administering controlled substances withouta good faith prior examination of the patient. Existing law provides thata violation of the Medical Practice Act is a crime.

This bill would require the board to consult with the Center forMedicinal Cannabis Research on developing and adopting medicalguidelines for the appropriate administration and use of marijuana.

The bill would also make it a misdemeanor for a physician andsurgeon who recommends marijuana to a patient for a medical purposeto accept, solicit, or offer any remuneration from or to a licenseddispensing facility in which the physician and surgeon or his or herimmediate family has a financial interest. By creating a new crime, thebill would impose a state-mandated local program.

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The bill would provide that specified acts of recommending marijuanafor medical purposes without a good faith examination are among thetypes of cases that should be given priority for investigation andprosecution by the board, as described above. The bill would furtherprohibit a physician and surgeon from recommending medical marijuanato a patient unless that person is the patient’s attending physician, asdefined. Because a violation of that provision would be a crime, the billwould impose a state-mandated local program.

(4)  Existing law authorizes the legislative body of a city or countyto impose various taxes, including a transactions and use tax at a rateof 0.25%, or a multiple thereof, if approved by the required vote of thelegislative body and the required vote of qualified voters, and limits thecombined rate of transactions and use taxes within a city or county to2%.

This bill would authorize the board of supervisors of a county toimpose a tax on the privilege of cultivating, dispensing, producing,processing, preparing, storing, providing, donating, selling, ordistributing marijuana or products containing marijuana. The bill wouldauthorize the tax to be imposed for either general or specificgovernmental purposes. The bill would require a tax imposed pursuantto this authority to be subject to any applicable voter approvalrequirement.

(5)  Existing law exempts qualified patients, persons with valididentification cards, and the designated primary caregivers of qualifiedpatients and persons with identification cards from certain crimes,including possession of concentrated cannabis and marijuana, cultivationof marijuana, and possession of marijuana for sale.

This bill would also exempt from those crimes an employee, officer,or board member of a licensed cultivation site or a licensed dispensingfacility, except as specified.

(6)  Existing law regulates the labor practices of agriculturalemployers.

This bill would include licensed cultivation sites and licenseddispensing facilities in the definition of agricultural employer.

(7)  This bill would provide that its provisions are severable.(8)  Existing constitutional provisions require that a statute that limits

the right of access to the meetings of public bodies or the writings ofpublic officials and agencies be adopted with findings demonstratingthe interest protected by the limitation and the need for protecting thatinterest.

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This bill would make legislative findings to that effect.(9)  The California Constitution requires the state to reimburse local

agencies and school districts for certain costs mandated by the state.Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this actfor a specified reason.

Vote: majority. Appropriation: yes. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:

line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  In 1996, the people of the State of California enacted the line 4 Compassionate Use Act of 1996, codified in Section 11362.5 of line 5 the Health and Safety Code. The people of the State of California line 6 declared that their purpose in enacting the measure was, among line 7 other things, “to ensure that seriously ill Californians have the line 8 right to obtain and use marijuana for medical purposes where that line 9 medical use is deemed appropriate and has been recommended by

line 10 a physician who has determined that the person’s health would line 11 benefit from the use of marijuana in the treatment of cancer, line 12 anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, line 13 migraine, or any other illness for which marijuana provides relief.” line 14 (b)  The Compassionate Use Act of 1996 called on state line 15 government to implement a plan for the safe and affordable line 16 distribution of marijuana to all patients in medical need of line 17 marijuana, while ensuring that nothing in that act would be line 18 construed to condone the diversion of marijuana for nonmedical line 19 purposes. line 20 (c)  In 2003, the Legislature enacted the Medical Marijuana line 21 Program Act (MMPA), codified in Article 2.5 (commencing with line 22 Section 11362.7) of Chapter 6 of Division 10 of the Health and line 23 Safety Code. line 24 (d)  Greater certainty and minimum statewide standards are line 25 urgently needed regarding the obligations of medical marijuana line 26 facilities, and for the imposition and enforcement of regulations line 27 to prevent unlawful cultivation and the diversion of marijuana to line 28 nonmedical use.

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line 1 (e)  Despite the passage of the Compassionate Use Act of 1996 line 2 and the MMPA, because of the lack of an effective statewide line 3 system for regulating and controlling medical marijuana, cities, line 4 counties and local law enforcement officials have been confronted line 5 with uncertainty about the legality of some medical marijuana line 6 cultivation and distribution activities. The current state of affairs line 7 makes law enforcement difficult and endangers patient safety line 8 because of an inability to monitor the supply of medical marijuana line 9 in the state and the lack of quality control, testing, and labeling

line 10 requirements. line 11 (f)  The California Constitution grants cities and counties the line 12 authority to make and enforce, within their borders, “all local line 13 police, sanitary, and other ordinances and regulations not in conflict line 14 with the general laws.” This inherent local police power includes line 15 broad authority to determine, for purposes of public health, safety, line 16 and welfare, the appropriate uses of land within the local line 17 jurisdiction’s borders. The police power, therefore, allows each line 18 city and county to determine whether or not a medical marijuana line 19 dispensary or other facility that makes medical marijuana available line 20 may operate within its borders. This authority has been upheld by line 21 City of Riverside v. Inland Empire Patients Health and Wellness line 22 Center, Inc. (2013) 56 Cal.4th 729 and County of Los Angeles v. line 23 Hill (2011) 192 Cal.App.4th 861. Nothing in this act shall diminish, line 24 erode, or modify that authority. line 25 (g)  If a city or county determines that a dispensary or other line 26 facility that makes medical marijuana available may operate within line 27 its borders, then there is a need for the state to license these line 28 dispensaries and other facilities for the purpose of adopting and line 29 enforcing protocols for security standards at dispensaries and in line 30 the transportation of medical marijuana, as well as health and safety line 31 standards to ensure patient safety. This licensing requirement is line 32 not intended in any way nor shall it be construed to preempt local line 33 ordinances, regulations, or enforcement actions regarding the sale line 34 and use of medical marijuana, including, but not limited to, line 35 security, signage, lighting, and inspections. line 36 (h)  All of the following are necessary to uphold important state line 37 goals: line 38 (1)  Strict provisions to prevent the potential diversion of line 39 marijuana for recreational use.

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line 1 (2)  Audits to accurately track the volume of both product line 2 movement and sales. line 3 (3)  An effective means of restricting nonmedical access to line 4 medical marijuana by minors. line 5 (i)  Nothing in this act shall be construed to promote or facilitate line 6 the nonmedical, recreational possession, sale, or use of marijuana. line 7 (j)  Nothing in this act shall have a diminishing effect on the line 8 rights and protections granted to a patient or primary caregiver line 9 pursuant to the Compassionate Use Act of 1996.

line 10 SEC. 2. Section 2220.05 of the Business and Professions Code line 11 is amended to read: line 12 2220.05. (a)  In order to ensure that its resources are maximized line 13 for the protection of the public, the Medical Board of California line 14 shall prioritize its investigative and prosecutorial resources to line 15 ensure that physicians and surgeons representing the greatest threat line 16 of harm are identified and disciplined expeditiously. Cases line 17 involving any of the following allegations shall be handled on a line 18 priority basis, as follows, with the highest priority being given to line 19 cases in the first paragraph: line 20 (1)  Gross negligence, incompetence, or repeated negligent acts line 21 that involve death or serious bodily injury to one or more patients, line 22 such that the physician and surgeon represents a danger to the line 23 public. line 24 (2)  Drug or alcohol abuse by a physician and surgeon involving line 25 death or serious bodily injury to a patient. line 26 (3)  Repeated acts of clearly excessive prescribing, furnishing, line 27 or administering of controlled substances, or repeated acts of line 28 prescribing, dispensing, or furnishing of controlled substances line 29 substances, or recommending marijuana to patients for medical line 30 purposes, without a good faith prior examination of the patient line 31 and medical reason therefor. However, in no event shall a physician line 32 and surgeon prescribing, furnishing, or administering controlled line 33 substances for intractable pain consistent with lawful prescribing, line 34 including, but not limited to, Sections 725, 2241.5, and 2241.6 of line 35 this code and Sections 11159.2 and 124961 of the Health and line 36 Safety Code, be prosecuted for excessive prescribing and prompt line 37 review of the applicability of these provisions shall be made in line 38 any complaint that may implicate these provisions. line 39 (4)  Sexual misconduct with one or more patients during a course line 40 of treatment or an examination.

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line 1 (5)  Practicing medicine while under the influence of drugs or line 2 alcohol. line 3 (b)  The board may by regulation prioritize cases involving an line 4 allegation of conduct that is not described in subdivision (a). Those line 5 cases prioritized by regulation shall not be assigned a priority equal line 6 to or higher than the priorities established in subdivision (a). line 7 (c)  The Medical Board of California shall indicate in its annual line 8 report mandated by Section 2312 the number of temporary line 9 restraining orders, interim suspension orders, and disciplinary

line 10 actions that are taken in each priority category specified in line 11 subdivisions (a) and (b). line 12 SEC. 3. Article 25 (commencing with Section 2525) is added line 13 to Chapter 5 of Division 2 of the Business and Professions Code, line 14 to read: line 15 line 16 Article 25. Recommending Medical Marijuana line 17 line 18 2525. (a)  It is unlawful for a physician and surgeon who line 19 recommends marijuana to a patient for a medical purpose to accept, line 20 solicit, or offer any form of remuneration from or to a facility line 21 issued a conditional license pursuant to Part 5 (commencing with line 22 Section 18100) of Division 7, if the physician and surgeon or his line 23 or her immediate family have a financial interest in that facility. line 24 (b)  For the purposes of this section, “financial interest” shall line 25 have the same meaning as in Section 650.01. line 26 (c)  A violation of this section shall be a misdemeanor. line 27 2525.1. The Medical Board of California shall consult with line 28 the California Marijuana Research Program, known as the Center line 29 for Medicinal Cannabis Research, authorized pursuant to Section line 30 11362.9 of the Health and Safety Code, on developing and adopting line 31 medical guidelines for the appropriate administration and use of line 32 medical marijuana. line 33 2525.2. A physician and surgeon shall not recommend medical line 34 marijuana to a patient, unless that person is the patient’s attending line 35 physician, as defined by subdivision (a) of Section 11362.7 of the line 36 Health and Safety Code. line 37 2525.3. An examination conducted by the physician and line 38 surgeon involving the use of telehealth as defined in Section 2290.5 line 39 of the Business and Professions Code, shall comply with applicable line 40 federal and state laws and regulations, including compliance with

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line 1 the regulations promulgated pursuant to the Health Insurance line 2 Portability and Accountability Act of 1996, found at Parts 160 and line 3 164 of Title 45 of the Code of Federal Regulations. line 4 SEC. 4. Part 5 (commencing with Section 18100) is added to line 5 Division 7 of the Business and Professions Code, to read: line 6 line 7 PART 5. MEDICAL MARIJUANA line 8 line 9 Chapter 1. General Provisions

line 10 line 11 18100. For purposes of this part, the following definitions shall line 12 apply: line 13 (a)  “Bureau” means the Bureau of Medical Marijuana Regulation line 14 in the Department of Consumer Affairs. line 15 (b)  “Certified testing laboratory” means a laboratory that is line 16 certified by the bureau to perform random sample testing of line 17 medical marijuana pursuant to the certification standards for these line 18 facilities promulgated by the bureau. line 19 (c)  “Chief” means the Chief of the Bureau of Medical Marijuana line 20 Regulation. line 21 (d)  “Department” means the Department of Consumer Affairs. line 22 (e)  “Director” means the Director of Consumer Affairs. line 23 (f)  “Dispensary” means a distribution operation that provides line 24 medical marijuana or medical marijuana derived products to line 25 patients and caregivers. line 26 (g)  “Fund” means the Medical Marijuana Regulation Fund line 27 established pursuant to Section 18118. line 28 (h)  “Labor peace agreement” means an agreement between an line 29 entity and a bona fide labor organization that, at a minimum, line 30 protects the state’s proprietary interests by prohibiting labor line 31 organizations and members from engaging in picketing, work line 32 stoppages, boycotts, and any other economic interference with the line 33 applicant’s business. The agreement means that the applicant has line 34 agreed not to disrupt efforts by the bona fide labor organization line 35 to communicate with, and attempt to organize and represent, the line 36 applicant’s employees. line 37 (i)  “Licensed cultivation site” means a facility that plants, grows, line 38 cultivates, harvests, dries, or processes medical marijuana and that line 39 is issued a conditional license pursuant to this part.

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line 1 (j)  “Licensed dispensing facility” means a dispensary or other line 2 facility that provides medical marijuana, medical marijuana line 3 products, or devices for the use of medical marijuana or medical line 4 marijuana products that is issued a conditional license pursuant to line 5 this part. line 6 (k)  “Licensed manufacturer” means a person who extracts, line 7 prepares, derives, produces, compounds, or repackages medical line 8 marijuana or medical marijuana products into consumable and line 9 nonconsumable forms and that is issued a conditional license

line 10 pursuant to this part. line 11 (l)  “Licensed transporter” means an individual or entity issued line 12 a conditional license by the bureau to transport medical marijuana line 13 to and from facilities that have been issued conditional licenses line 14 pursuant to this part. line 15 (m)  “Marijuana” means all parts of the plant Cannabis sativa, line 16 cannabis indica, or cannabis ruderalis, whether growing or not; line 17 the seeds thereof; the resin, whether crude or purified, extracted line 18 from any part of the plant; and every compound, manufacture, salt, line 19 derivative, mixture, or preparation of the plant, its seeds, or resin. line 20 “Marijuana” does not include the mature stalks of the plant, fiber line 21 produced from the stalks, oil or cake made from the seeds of the line 22 plant, any other compound, manufacture, salt, derivative, mixture, line 23 or preparation of the mature stalks (except the resin extracted line 24 therefrom), fiber, oil, or cake, or the sterilized seed of the plant line 25 which is incapable of germination. “Marijuana” also means line 26 marijuana, as defined by Section 11018 of the Health and Safety line 27 Code. line 28 18101. (a)  There is hereby created in the Department of line 29 Consumer Affairs the Bureau of Medical Marijuana Regulation, line 30 under the supervision and control of the Chief of the Bureau of line 31 Medical Marijuana Regulation. line 32 (b)  Protection of the public shall be the highest priority for the line 33 bureau in exercising its licensing, regulatory, and disciplinary line 34 functions. Whenever the protection of the public is inconsistent line 35 with other interests sought to be promoted, the protection of the line 36 public shall be paramount. line 37 (c)  The bureau shall have the authority to issue conditional line 38 licenses for the cultivation, manufacture, transportation, storage, line 39 distribution, and sale of medical marijuana within the state and to line 40 collect fees in connection with these actions. The bureau shall have

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line 1 the authority to create other licenses in order to protect patient line 2 health and the public and to facilitate the regulation of medical line 3 marijuana. line 4 (d)  The Governor shall appoint the chief at a salary to be fixed line 5 and determined by the director with the approval of the Director line 6 of Finance. The chief shall serve in accordance with the State Civil line 7 Service Act (Part 2 (commencing with Section 18500) of Division line 8 5 of Title 2 of the Government Code). line 9 (e)  The duty of enforcing and administering this part shall be

line 10 vested in the chief, who is responsible to the director. The chief line 11 may adopt and enforce those rules and regulations that he or she line 12 determines are reasonably necessary to carry out the purposes of line 13 this part and declaring the policy of the bureau, including a system line 14 for the issuance of citations for violations of this part, as specified line 15 in Section 18126. line 16 (f)  The chief, as necessary to carry out the provisions of this line 17 part, and in accordance with the State Civil Service Act (Part 2 line 18 (commencing with Section 18500) of Division 5 of Title 2 of the line 19 Government Code), may appoint and fix the compensation of line 20 personnel, including, but not limited to, clerical, inspection, line 21 investigation, and auditing personnel, as well as an assistant chief. line 22 These personnel shall perform their respective duties under the line 23 supervision and the direction of the chief. line 24 (g)  Every power granted to, or duty imposed upon, the chief line 25 under this part may be exercised or performed in the name of the line 26 chief by a deputy or assistant chief, subject to conditions and line 27 limitations that the chief prescribes. line 28 (h)  The bureau shall exercise its authority pursuant to this part line 29 consistent with Section 1 of the act that added this section and line 30 consistent with the provisions of this part. line 31 18102. Funds for the establishment and support of the bureau line 32 shall be advanced as a loan by the department and shall be repaid line 33 by the initial proceeds from fees collected pursuant to this part or line 34 any rule or regulation adopted pursuant to this part. line 35 18103. The bureau shall have the authority necessary for the line 36 implementation of this part, including, but not limited to, all of line 37 the following: line 38 (a)  Establishing rules or regulations necessary to carry out the line 39 purposes and intent of this part and to enable the bureau to exercise line 40 the powers and perform the duties conferred upon it by this part

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line 1 and in accordance with Chapter 3.5 (commencing with Section line 2 11340) of Part 1 of Division 3 of Title 2 of the Government Code. line 3 For the performance of its duties, the bureau has the powers as set line 4 forth in Article 2 (commencing with Section 11180) of Chapter 2 line 5 of Part 1 of Division 3 of Title 2 of the Government Code. line 6 (b)  Issuing conditional licenses to persons for the cultivation, line 7 manufacture, transportation, storage, distribution, and sale of line 8 medical marijuana within the state. line 9 (c)  Setting application, licensing, and renewal fees for

line 10 conditional licenses issued pursuant to Section 18117. line 11 (d)  Establishing standards for the cultivation, manufacturing, line 12 transportation, storage, distribution, provision, donation, and sale line 13 of medical marijuana and medical marijuana products. line 14 (e)  Establishing procedures for the issuance, renewal, line 15 suspension, denial, and revocation of conditional licenses. line 16 (f)  Imposing a penalty authorized by this part or any rule or line 17 regulation adopted pursuant to this part. line 18 (g)  Taking action with respect to an application for a conditional line 19 license in accordance with procedures established pursuant to this line 20 part. line 21 (h)  Overseeing the operation of the Medical Marijuana line 22 Regulation Fund and the Special Account for Environmental line 23 Enforcement, established pursuant to Section 18118. line 24 (i)  Consulting with other state or local agencies, departments, line 25 representatives of the medical marijuana community, or public or line 26 private entities for the purposes of establishing statewide standards line 27 and regulations. line 28 (j)  Certifying laboratories to perform testing of medical line 29 marijuana. line 30 18104. (a)  On or before July 1, 2017, the bureau shall line 31 promulgate regulations for implementation and enforcement of line 32 this part, including, but not limited to, all of the following: line 33 (1)  Procedures for the issuance, renewal, suspension, denial, line 34 and revocation of conditional licenses. line 35 (2)  Procedures for appeal of fines and the appeal of denial, line 36 suspension, or revocation of conditional licenses. line 37 (3)  Application, licensing, and renewal forms and fees. line 38 (4)  A time period in which the bureau shall approve or deny an line 39 application for a conditional license pursuant to this part. line 40 (5)  Qualifications for licensees.

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line 1 (6)  Standards for certification of testing laboratories to perform line 2 random sample testing of all medical marijuana products, including line 3 standards for onsite testing. line 4 (A)  Certification of testing laboratories shall be consistent with line 5 general requirements for the competence of testing and calibration line 6 activities, including sampling, using standard methods established line 7 by the International Organization for Standardization, specifically line 8 ISO/IEC 17025. line 9 (B)  These requirements shall apply to all entities, including

line 10 third-party laboratories, engaged in the testing of medical marijuana line 11 pursuant to this part. line 12 (7)  Requirements to ensure conformance with standards line 13 analogous to state statutory environmental, agricultural, consumer line 14 protection, and food and product safety requirements. At a line 15 minimum, these standards shall do all of the following: line 16 (A)  Prescribe sanitation standards analogous to the California line 17 Retail Food Code (Part 7 (commencing with Section 113700) of line 18 Division 104 of the Health and Safety Code) for food preparation, line 19 storage, handling, and sale of edible medical marijuana products. line 20 (B)  Require that edible medical marijuana products produced, line 21 distributed, provided, donated, or sold by licensees shall be limited line 22 to nonpotentially hazardous food, as established by the State line 23 Department of Public Health pursuant to Section 114365.5. line 24 (C)  Require that facilities in which edible medical marijuana line 25 products are prepared shall be constructed in accordance with line 26 applicable building standards, health and safety standards, and line 27 other state laws. line 28 (D)  Provide that weighing or measuring devices used in line 29 connection with the sale or distribution of medical marijuana are line 30 required to meet standards analogous to Division 5 (commencing line 31 with Section 12001). line 32 (E)  Require that the application of pesticides or other pest line 33 control in connection with the indoor or outdoor cultivation of line 34 medical marijuana shall meet standards analogous to Division 6 line 35 (commencing with Section 11401) of the Food and Agricultural line 36 Code and its implementing regulations. line 37 (b)  On or before July 1, 2017, the bureau shall also promulgate line 38 regulations for minimum statewide health and safety standards line 39 and quality assurance standards associated with the cultivation, line 40 transport, storage, manufacture, and sale of all medical marijuana

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line 1 produced in this state. Consistent with Section 18126, local line 2 agencies shall have primary responsibility for enforcement of these line 3 standards in accordance with bureau regulations. line 4 (c)  The bureau shall not issue a conditional license unless the line 5 applicant has met all of the requirements of this part, including the line 6 requirements of paragraph (4) of subdivision (d) of Section 18110. line 7 18105. The chief shall keep a complete record of all facilities line 8 issued a conditional license. This record shall be made available line 9 on the bureau’s Internet Web site.

line 10 18106. The bureau shall establish procedures to provide state line 11 and local law enforcement, upon their request, with 24-hour access line 12 to information to verify a conditional license, track transportation line 13 manifests, and track the inventories of facilities issued a conditional line 14 license. line 15 18107. This part shall in no way supersede the provisions of line 16 Measure D, approved by the voters of the City of Los Angeles on line 17 the May 21, 2013, ballot for the city, which granted medical line 18 marijuana businesses and dispensaries qualified immunity line 19 consistent with the terms of the measure and local ordinances. line 20 Notwithstanding the provisions of this part, marijuana businesses line 21 and dispensaries subject to the provisions of Measure D and its line 22 qualified immunity shall continue to be subject to the ordinances line 23 and regulations of the City of Los Angeles. line 24 line 25 Chapter 2. Conditional Licenses

line 26 line 27 18108. The following persons are exempt from the requirement line 28 of licensure under this part: line 29 (a)  A patient who cultivates, possesses, stores, manufactures, line 30 or transports marijuana exclusively for his or her personal medical line 31 use and who does not sell, distribute, donate, or provide marijuana line 32 to any other person or entity. line 33 (b)  A primary caregiver who cultivates, possesses, stores, line 34 manufactures, transports, or provides marijuana exclusively for line 35 the personal medical purposes to no more than five specified line 36 qualified patients for whom he or she is the primary caregiver line 37 within the meaning of Section 11362.7 of the Health and Safety line 38 Code and who does not receive remuneration for these activities, line 39 except for compensation in full compliance with subdivision (c) line 40 of Section 11362.765 of the Health and Safety Code. Nothing in

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line 1 this section shall permit primary caregivers to organize themselves line 2 as cooperatives or collectives of caregivers. line 3 18109. (a)  Except as provided in Section 11362.5 of, and line 4 Article 2.5 (commencing with Section 11362.7) of Chapter 6 of line 5 Division 10 of, the Health and Safety Code, a person shall not sell line 6 or provide medical marijuana to a patient or caregiver other than line 7 at a licensed dispensing facility or through delivery from a licensed line 8 dispensing facility. line 9 (b)  Except as provided in Section 11362.5 of, and Article 2.5

line 10 (commencing with Section 11362.7) of Chapter 6 of Division 10 line 11 of, the Health and Safety Code, a person shall not grow medical line 12 marijuana other than at a licensed cultivation site. line 13 (c)  Except as provided in Section 11362.5 of, and Article 2.5 line 14 (commencing with Section 11362.7) of Chapter 6 of Division 10 line 15 of, the Health and Safety Code, a person shall not manufacture line 16 medical marijuana or medical marijuana products other than a line 17 licensed manufacturer. line 18 (d)  A person shall not transport medical marijuana from one line 19 facility issued a conditional license to another, other than a licensed line 20 transporter. line 21 (e)  A licensed manufacturer may obtain medical marijuana from line 22 a licensed cultivator and may furnish medical marijuana products line 23 to a licensed dispensary. line 24 (f)  To meet the requirements of Article 8 (commencing with line 25 Section 111658) of Chapter 6 of Part 5 of Division 104 of the line 26 Health and Safety Code, medical marijuana and medical marijuana line 27 products shall be tested by a certified testing laboratory. line 28 18110. (a)  Beginning July 1, 2017, the bureau shall provide line 29 for and shall issue conditional licenses. Conditional licenses shall line 30 be issued for all activity authorized under this chapter, including, line 31 but not limited to, cultivation, storage, transport, and dispensing line 32 of medical marijuana. line 33 (b)  The issuance of a conditional license shall not, in and of line 34 itself, authorize the recipient to begin business operations. The line 35 conditional license shall certify, at a minimum, that the applicant line 36 has paid the state conditional licensing fee, successfully passed a line 37 criminal background check, and met the state residency line 38 requirements. line 39 (c)  In order to begin business operations pursuant to this chapter, line 40 an applicant shall, in addition to the conditional license, obtain a

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line 1 license or permit from the local jurisdiction in which he or she line 2 proposes to operate, following the requirements of the applicable line 3 local ordinances. line 4 (d)  An applicant for a conditional license shall do all following: line 5 (1)  Pay the fee or fees required by this part for each license line 6 being applied for. line 7 (2)  Register with the bureau on forms prescribed by the chief. line 8 The forms shall contain sufficient information to identify the line 9 licensee, including all of the following:

line 10 (A)  Name of the owner or owners of a proposed facility, line 11 including all persons or entities having an ownership interest other line 12 than a security interest, lien, or encumbrance on property that will line 13 be used by the applicant. line 14 (B)  The name, address, and date of birth of each principal officer line 15 and board member. line 16 (C)  The address and telephone number of the proposed facility. line 17 (D)  In the case of a cultivation site, the GPS coordinates of the line 18 site. line 19 (3)  Describe, in writing, the scope of business of the proposed line 20 facility. line 21 (4)  Provide evidence that the applicant and owner have been line 22 legal full-time residents of the state for not less than 12 months. line 23 (5)  Provide detailed operating procedures, in writing, for the line 24 proposed facility, which shall include, but not be limited to, line 25 procedures for facility and operational security, prevention of line 26 diversion, employee screening, storage of medical marijuana, line 27 personnel policies, and recordkeeping procedures. line 28 (6)  Provide the applicant’s fingerprint images. For purposes of line 29 this paragraph, “applicant” means the owner or owners of a line 30 proposed facility, including all persons or entities having an line 31 ownership interest other than a security interest, lien, or line 32 encumbrance on property that will be used by the facility. line 33 (A)  The applicant shall electronically submit to the Department line 34 of Justice fingerprint images and related information required by line 35 the Department of Justice for the purpose of obtaining information line 36 as to the existence and content of a record of state or federal line 37 convictions and arrests, and information as to the existence and line 38 content of a record of state or federal convictions and arrests for line 39 which the Department of Justice establishes that the person is free line 40 on bail, or on his or her own recognizance, pending trial or appeal.

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line 1 (B)  The Department of Justice shall provide a response to the line 2 bureau pursuant to paragraph (1) of subdivision (p) of Section line 3 11105 of the Penal Code. line 4 (C)  The bureau shall request from the Department of Justice line 5 subsequent notification service, as provided pursuant to Section line 6 11105.2 of the Penal Code, for persons described in subparagraph line 7 (A). line 8 (D)  The Department of Justice shall charge the applicant a fee line 9 sufficient to cover the reasonable cost of processing the requests

line 10 described in this paragraph. line 11 (7)  Provide a statement, signed by the applicant under penalty line 12 of perjury, that the information provided is true. line 13 (8)  Provide any other information required by the bureau. line 14 (e)  Each location and each discrete use of a single location shall line 15 require a conditional license. Each application for a conditional line 16 license is separate and distinct, and the bureau may charge a line 17 separate fee for each. line 18 (f)  A conditional license issued pursuant to this section shall be line 19 valid for 12 months after the date of issuance. The bureau shall line 20 establish procedures for the renewal of a conditional license. line 21 18111. (a)  Upon receipt of the application materials and fee line 22 required in Section 18110, the bureau, provided the applicant has line 23 not committed an act or crime constituting grounds for the denial line 24 of licensure under Section 18112, may issue the conditional license line 25 and send a proof of issuance to the applicant. line 26 (b)  The chief shall, by regulation, prescribe conditions upon line 27 which a person whose conditional license has previously been line 28 denied, suspended, or revoked, may be issued a conditional license. line 29 18112. (a)  An application for a conditional license shall be line 30 denied and a conditional license shall be suspended or revoked for line 31 a past felony conviction for the possession for sale, sale, line 32 manufacture, transportation, or cultivation of a controlled line 33 substance, a felony criminal conviction for drug trafficking, a line 34 felony conviction for embezzlement, a felony conviction involving line 35 fraud or deceit, or any violent or serious felony conviction pursuant line 36 to subdivision (c) of Section 667.5 of, or subdivision (c) of Section line 37 1192.7 of, the Penal Code. The bureau, at its discretion, may issue line 38 a license to an applicant that would be otherwise denied pursuant line 39 to this subdivision if the applicant has obtained a certificate of line 40 rehabilitation, pursuant to Section 4852.13 of the Penal Code.

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line 1 (b)  The chief, upon his or her determination, may deny, suspend, line 2 or revoke a conditional license when a conditional licensee, line 3 applicant, or employee, partner, officer, or member of an entity line 4 conditionally licensed does any of the following: line 5 (1)  Making or authorizing in any manner or by any means a line 6 written or oral statement that is untrue or misleading and that is line 7 known, or that by exercise of reasonable care should be known, line 8 to be untrue or misleading. line 9 (2)  Any other conduct that constitutes fraud.

line 10 (3)  Conduct constituting gross negligence. line 11 (4)  Failure to comply with the provisions of this part, Article 8 line 12 (commencing with Section 111658) of Chapter 6 of Part 5 of line 13 Division 104 of the Health and Safety Code, or any rule or line 14 regulation adopted pursuant to this part. line 15 (5)  Conduct that constitutes grounds for denial of licensure line 16 pursuant to Chapter 2 (commencing with Section 480) of Division line 17 1.5. line 18 18113. (a)  Upon denying, suspending, or revoking a line 19 conditional license, the chief shall notify the applicant or licensee, line 20 in writing, by personal service or mail addressed to the address of line 21 the applicant or licensee set forth in the application. The applicant line 22 or licensee shall be given a hearing within 30 days thereafter if he line 23 or she files with the bureau a written request for hearing. Otherwise, line 24 the denial, suspension, or revocation is deemed affirmed. line 25 (b)  All proceedings to deny, suspend, or revoke a conditional line 26 license shall be conducted pursuant to Chapter 5 (commencing line 27 with Section 11500) of Part 1 of Division 3 of Title 2 of the line 28 Government Code. line 29 18114. An application for or renewal of a license shall not be line 30 approved if the bureau determines any of the following: line 31 (a)  The applicant fails to meet the requirements of this part or line 32 any regulation adopted pursuant to this part or any applicable city, line 33 county, or city and county ordinance or regulation. If a local line 34 government adopts an ordinance or resolution authorizing medical line 35 marijuana to be cultivated, manufactured, stored, distributed, or line 36 sold within its jurisdiction, it shall submit to the bureau line 37 documentation detailing their renewal requirements. line 38 (b)  The applicant, or any of its officers, directors, owners, line 39 members, or shareholders, is a minor.

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line 1 (c)  The applicant has knowingly answered a question or request line 2 for information falsely on the application form or failed to provide line 3 information requested. line 4 (d)  The applicant, or any of its officers, directors, owners, line 5 members, or shareholders has been sanctioned by the bureau, a line 6 city, county, or city and county, for medical marijuana activities line 7 conducted in violation of this part or any applicable local ordinance line 8 or has had a license revoked in the previous five years. line 9 (e)  The proposed cultivation, processing, possession, storage,

line 10 manufacturing, testing, transporting, distribution, provision, or line 11 sale of medical marijuana will violate any applicable local law or line 12 ordinance. line 13 (f)  The applicant or the owner is unable to establish that he or line 14 she has been a resident of the state for not less than 12 months. line 15 18115. In addition to the provisions of this part, a conditional line 16 license shall be subject to the restrictions of the local jurisdiction line 17 in which the facility operates or proposes to operate. Even if a line 18 conditional license has been granted pursuant to this part, a facility line 19 shall not operate in a local jurisdiction that prohibits the line 20 establishment of that type of business. line 21 18116. The bureau may adopt regulations to limit the number line 22 of conditional licenses issued pursuant to this part upon a finding line 23 that the otherwise unrestricted issuance of conditional licenses is line 24 dangerous to the public health and safety. line 25 line 26 Chapter 3. Fees

line 27 line 28 18117. (a)  The conditional licensing fee shall be established line 29 by the bureau at a level sufficient to fund the reasonable costs of line 30 all of the following: line 31 (1)  Administrative costs incurred by the bureau in overseeing line 32 the conditional licensing program, establishing health and safety line 33 standards, and certifying the required testing laboratories. line 34 (2)  Costs incurred by the bureau or the Department of Justice line 35 for enforcement of the provisions of this part. line 36 (3)  Costs incurred by law enforcement and other public safety line 37 entities for enforcing the provisions of this part in their jurisdiction. line 38 (b)  In addition to the conditional licensing fee required pursuant line 39 to subdivision (a), a cultivation facility shall be assessed a fee in line 40 a sufficient amount to cover the reasonable regulatory costs of

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line 1 enforcing the environmental impact provisions relating to those line 2 cultivation facilities. This fee shall be distributed, as necessary line 3 and in proportion to its regulatory function, between the following line 4 agencies responsible for enforcing the regulations relating to the line 5 environmental impact of licensed cultivation sites: line 6 (1)  The State Water Board. line 7 (2)  The Department of Fish and Wildlife. line 8 (3)  The Department of Forestry and Fire Protection. line 9 (4)  The Department of Pesticide Regulation.

line 10 (5)  The Department of Food and Agriculture. line 11 18118. (a)  The Medical Marijuana Regulation Fund is hereby line 12 established within the State Treasury. Notwithstanding Section line 13 16305.7 of the Government Code, the fund shall include any line 14 interest and dividends earned on the money in the fund. line 15 (b)  Except as provided in subdivision (c), all fees collected line 16 pursuant to this part shall be deposited into the Medical Marijuana line 17 Regulation Fund. Notwithstanding Section 13340 of the line 18 Government Code, all moneys within the fund are hereby line 19 continuously appropriated, without regard to fiscal year, to the line 20 bureau solely for the purposes of fully funding and administering line 21 this part, including, but not limited to, the costs incurred by the line 22 bureau for its administrative expenses. line 23 (c)  The Special Account for Environmental Enforcement is line 24 hereby established as an account within the Medical Marijuana line 25 Regulation Fund. Notwithstanding Section 16305.7 of the line 26 Government Code, the account shall include any interest and line 27 dividends earned on the money in the account. All fees collected line 28 pursuant to subdivision (b) of Section 18112 shall be deposited in line 29 this account. Notwithstanding Section 13340 of the Government line 30 Code, all moneys within the fund are hereby continuously line 31 appropriated, without regard to fiscal year, to the bureau for line 32 distribution to the entities listed in subdivision (b) of Section 18117 line 33 to be used to enforce the environmental regulation of licensed line 34 cultivation sites. line 35 (d)  All moneys collected as a result of penalties imposed under line 36 this part shall be deposited directly into the General Fund, to be line 37 available upon appropriation. line 38 (e)  The bureau may establish and administer a grant program line 39 to allocate moneys from the Medical Marijuana Regulation Fund line 40 to state and local entities for the purpose of assisting with medical

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line 1 marijuana regulation and the enforcement of this part and other line 2 state and local laws applicable to licensees. line 3 18119. (a)  A facility issued a conditional license shall not line 4 acquire, cultivate, process, possess, store, manufacture, distribute, line 5 sell, deliver, transfer, transport, or dispense medical marijuana for line 6 any purpose other than those authorized by Article 2.5 line 7 (commencing with Section 11362.7) of Chapter 6 of Division 10 line 8 of the Health and Safety Code. line 9 (b)  A licensed dispensing facility shall not acquire, cultivate,

line 10 process, possess, store, manufacture, distribute, sell, deliver, line 11 transfer, transport, or dispense medical marijuana plants or medical line 12 marijuana products except through a licensed cultivation site or a line 13 licensed manufacturer. line 14 line 15 Chapter 4. Transportation of Medical Marijuana

line 16 line 17 18120. (a)  A licensed transporter shall ship only to facilities line 18 issued a conditional license and only in response to a request for line 19 a specific quantity and variety from those facilities. line 20 (b)  Prior to transporting medical marijuana products, a licensed line 21 transporter shall do both of the following: line 22 (1)  Complete a shipping manifest using a form prescribed by line 23 the bureau. line 24 (2)  Securely transmit a copy of the manifest to the licensee that line 25 will receive the medical marijuana product, and to the bureau, line 26 prior to transport. line 27 (c)  The licensed transporter making the shipment and the line 28 licensee receiving the shipment shall maintain each shipping line 29 manifest and make it available to local code enforcement officers, line 30 any other locally designated enforcement entity, and the bureau line 31 upon request. line 32 18121. (a)  Transported medical marijuana products shall: line 33 (1)  Be transported only in a locked, safe, and secure storage line 34 compartment that is securely affixed to the interior of the line 35 transporting vehicle. line 36 (2)  Not be visible from outside the vehicle. line 37 (b)  A vehicle transporting medical marijuana products shall line 38 travel directly from one licensed facility to another licensed facility line 39 authorized to receive the shipment.

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line 1 18122. (a)  All transport vehicles shall be staffed with a line 2 minimum of two employees. At least one transport team member line 3 shall remain with the vehicle at all times when the vehicle contains line 4 medical marijuana. line 5 (b)  Each transport team member shall have access to a secure line 6 form of communication by which each member can communicate line 7 with personnel at the licensed facility at all times when the vehicle line 8 contains medical marijuana. line 9 (c)  Each transport team member shall possess documentation

line 10 of licensing and a government-issued identification card at all line 11 times when transporting or delivering medical marijuana and shall line 12 produce it to any representative of the bureau or law enforcement line 13 upon request. line 14 (d)  This part shall not be construed to authorize or permit a line 15 licensee to transport, or cause to be transported, medical marijuana line 16 or medical marijuana products outside the state. line 17 18123. A local jurisdiction shall not prevent transportation line 18 through or to a facility issued a conditional license, by a line 19 conditionally licensed transporter who acts in compliance with line 20 this part. line 21 line 22 Chapter 5. Enforcement

line 23 line 24 18124. A state agency is not required by this section to enforce line 25 a city, county, city and county, or local law, ordinance, rule, or line 26 regulation regarding the site or operation of a facility issued a line 27 conditional license. line 28 18125. The bureau may assist state taxation authorities in the line 29 development of uniform policies for the state taxation of licensees. line 30 18126. (a)  For facilities issued a conditional license that are line 31 located within the incorporated area of a city, the city shall have line 32 full power and authority to enforce this part and Article 8 line 33 (commencing with Section 111658) of Chapter 6 of Part 5 of line 34 Division 104 of the Health and Safety Code and the rules, line 35 regulations, and standards promulgated by the bureau. The city line 36 shall further assume complete responsibility for any regulatory line 37 function relating to those licensees within the city limits that would line 38 otherwise be performed by the county or any county officer or line 39 employee, without liability, cost, or expense to the county.

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line 1 (b)  For licensed facilities located within the unincorporated area line 2 of a county, the county shall have full power and authority to line 3 enforce this part and Article 8 (commencing with Section 111658) line 4 of Chapter 6 of Part 5 of Division 104 of the Health and Safety line 5 Code and the rules, regulations, and standards promulgated by the line 6 bureau. line 7 18127. (a)  A willful violation of Section 18110, including an line 8 attempt to falsify information on an application or to otherwise line 9 defraud or mislead a state or local agency in the course of the

line 10 application process, shall be punishable by a civil fine of up to line 11 thirty-five thousand dollars ($35,000) for each individual violation. line 12 (b)  A technical violation of Section 18110 shall, at the bureau’s line 13 discretion, be punishable by a civil fine of up to ten thousand line 14 dollars ($10,000) for each individual violation. line 15 18128. A district attorney, county counsel, city attorney, or line 16 city prosecutor may bring an action to enjoin a violation or the line 17 threatened violation of any provision of this part, including, but line 18 not limited to, a licensee’s failure to correct objectionable line 19 conditions following notice or as a result of a rule promulgated line 20 pursuant to this part. The action shall be brought in the county in line 21 which the violation occurred or is threatened to occur. A proceeding line 22 brought pursuant to this part shall conform to the requirements of line 23 Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of line 24 the Code of Civil Procedure. Nothing in this section shall diminish line 25 the authority of a local government to take requisite enforcement line 26 actions pertaining to its own ordinances or regulations. line 27 18129. Nothing in this part shall prevent a city or other local line 28 governing body from taking action as specified in Section 11362.83 line 29 of the Health and Safety Code. line 30 18130. This part shall not be construed to limit a law line 31 enforcement agency’s ability to investigate unlawful activity in line 32 relation to a facility issued a conditional license. line 33 line 34 Chapter 6. Cannabis Employees

line 35 line 36 18131. (a)  The Division of Labor Standards Enforcement shall line 37 do all of the following: line 38 (1)  Maintain minimum standards for the competency and line 39 training of employees of a licensed cultivation site or a licensed

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line 1 dispensing facility, as defined in subdivisions (i) and (j) of Section line 2 18100, through a system of testing and certification. line 3 (2)  Maintain an advisory committee and panels as necessary to line 4 carry out its functions under this section. There shall be employer line 5 representation on the committee and panels. line 6 (3)  Establish and collect certification fees not to exceed the line 7 reasonable cost to the division in issuing certifications. line 8 (4)  Adopt regulations necessary to implement this chapter. line 9 (5)  Issue certification cards to employees who have been

line 10 certified pursuant to this chapter. line 11 (6)  Maintain a cannabis certification curriculum committee line 12 made up of representatives of the State Department of Education, line 13 the California Community Colleges, and the division. The line 14 committee shall do all of the following: line 15 (A)  Establish written educational curriculum standards for line 16 enrollees in training programs. Curriculum shall include appropriate line 17 standards for the sale, processing, and cultivation of medical line 18 marijuana including standards for dispensing, growing, harvesting, line 19 packaging, labeling, preparing, transporting, delivering, testing, line 20 storage, and preventing diversion of medical marijuana and related line 21 products, including edible medical marijuana products. line 22 (B)  If an educational provider’s curriculum meets the written line 23 educational curriculum standards established in accordance with line 24 subparagraph (A), designate that curriculum as an approved line 25 curriculum of classroom instruction. line 26 (C)  At the committee’s discretion, review the approved line 27 curriculum of classroom instruction of any designated educational line 28 provider. The committee may withdraw its approval of the line 29 curriculum if the educational provider does not continue to meet line 30 the established written educational curriculum standards. line 31 (D)  Require each designated educational provider to submit an line 32 annual notice to the committee stating whether the educational line 33 provider is continuing to offer the approved curriculum of line 34 classroom instruction and whether material changes have been line 35 made to the curriculum since its approval. line 36 (b)  There shall be no discrimination in favor of, or against, a line 37 person based on membership or nonmembership in a union. line 38 (c)  For purposes of this chapter, the following definitions apply:

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line 1 (1)  “Cannabis employee” means an employee of a licensed line 2 cultivation site or a licensed dispensing facility, as defined in line 3 subdivisions (i) and (j) of Section 18100. line 4 (2)  “Committee” means the cannabis curriculum certification line 5 committee established pursuant to paragraph (6) of subdivision line 6 (a). line 7 (3)  “Division” means the Division of Labor Standards and line 8 Enforcement. line 9 18132. (a)  Except as provided in subdivision (c), persons who

line 10 perform work as cannabis employees shall be certified by the line 11 division. line 12 (b)  Individuals desiring to be certified shall submit an line 13 application for certification and examination that includes an line 14 employment history report from the Social Security Administration. line 15 The individual may redact his or her social security number from line 16 the employment history report before it is submitted. line 17 (c)  (1)  Certification is not required for registered apprentices line 18 working as cannabis employees as part of an apprenticeship line 19 program approved under a federal Office of Apprenticeship line 20 program or a state apprenticeship program authorized by the federal line 21 Office of Apprenticeship. An apprentice who is within one year line 22 of completion of his or her term of apprenticeship shall be line 23 permitted to take the certification examination and, upon passing line 24 the examination, shall be certified immediately upon completion line 25 of the term of apprenticeship. line 26 (2)  Certification is not required for any person employed line 27 pursuant to Section 18134. line 28 (d)  The following shall constitute additional grounds for line 29 disciplinary proceedings, including suspension or revocation of line 30 the conditional license issued pursuant to this part: line 31 (1)  The licensed cultivation site or licensed dispensing facility line 32 willfully employs one or more uncertified persons to perform work line 33 as cannabis employees in violation of this section or Section 18134. line 34 (2)  The licensed cultivation site or licensed dispensing facility line 35 willfully fails to provide adequate supervision of uncertified line 36 workers required by paragraph (3) of subdivision (a) of Section line 37 18134. line 38 (3)  The licensed cultivation site or licensed dispensing facility line 39 willfully fails to provide adequate supervision of apprentices line 40 performing work pursuant to subdivision (c).

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line 1 (e)  The Labor Commissioner shall maintain a process for line 2 referring cases to the bureau when it has been determined that a line 3 violation of this section has likely occurred. The Labor line 4 Commissioner shall have a memorandum of understanding with line 5 the bureau in furtherance of this section. line 6 (f)  Upon receipt of a referral by the Labor Commissioner line 7 alleging a violation under this section, the bureau shall open an line 8 investigation. Disciplinary action against the licensee shall be line 9 initiated within 60 days of the receipt of the referral. The bureau

line 10 may initiate disciplinary action against a licensee upon his or her line 11 own investigation, the filing of a complaint, or a finding that results line 12 from a referral from the Labor Commissioner alleging a violation line 13 under this section. Failure of the employer or employee to provide line 14 evidence of certification or apprentice status shall create a line 15 rebuttable presumption of violation of this provision. line 16 18133. The division shall do all of the following: line 17 (a)  Make information about cannabis employee certification line 18 available in languages other than English to the extent the division line 19 finds it appropriate. line 20 (b)  Provide for the administration of certification tests in Spanish line 21 and, to the extent practicable, other languages spoken by a line 22 substantial number of applicants, except when the ability to line 23 understand warning signs, instructions, and certain other line 24 information in English is necessary for safety, cultivation, and line 25 dispensing. line 26 (c)  Ensure, in conjunction with the California Apprenticeship line 27 Council, that all cannabis apprenticeship programs that impose line 28 minimum formal education requirements as a condition of entry line 29 provide for reasonable alternative means of satisfying those line 30 requirements. line 31 (d)  Ensure, in conjunction with the California Apprenticeship line 32 Council, that all cannabis apprenticeship programs have adopted line 33 reasonable procedures for granting credit toward a term of line 34 apprenticeship for other vocational training and on-the-job training line 35 experience. line 36 18134. (a)  An uncertified person may perform work for which line 37 certification is otherwise required in order to acquire the necessary line 38 on-the-job experience for certification if all of the following line 39 requirements are met:

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line 1 (1)  The person is registered with the division. A list of current line 2 registrants shall be maintained by the division and made available line 3 to the public upon request. line 4 (2)  The person either has completed or is enrolled in an approved line 5 curriculum of classroom instruction. line 6 (3)  The employer attests that the person shall be under the direct line 7 supervision of a cannabis employee certified pursuant to Section line 8 18131 who is responsible for supervising no more than one line 9 uncertified person. An employer who is found by the division to

line 10 have failed to provide adequate supervision may be barred by the line 11 division from employing uncertified individuals in the future. line 12 (b)  For purposes of this section, “an approved curriculum of line 13 classroom instruction” means a curriculum of classroom instruction line 14 approved by the committee and provided under the jurisdiction of line 15 the State Department of Education, the Board of Governors of the line 16 California Community Colleges, or the Bureau for Private line 17 Postsecondary and Vocational Education. line 18 (c)  The committee may grant approval to an educational provider line 19 that presently offers only a partial curriculum if the educational line 20 provider intends in the future to offer, or to cooperate with other line 21 educational providers to offer, a complete curriculum for the type line 22 of certification involved. The committee may require an line 23 educational provider receiving approval for a partial curriculum line 24 to periodically renew its approval with the committee until a line 25 complete curriculum is offered and approved. line 26 (d)  An educational provider that receives approval for a partial line 27 curriculum shall disclose in all communications to students and line 28 to the public that the educational provider has only received line 29 approval for a partial curriculum and shall not make any line 30 representations that the provider offers a complete approved line 31 curriculum of classroom instruction. line 32 (e)  For purposes of this section, a person is enrolled in an line 33 approved curriculum of classroom instruction if the person is line 34 attending classes on a full-time or part-time basis toward the line 35 completion of an approved curriculum. line 36 (f)  Registration under this section shall be renewed annually line 37 and the registrant shall provide to the division certification of the line 38 classwork completed and on-the-job experience acquired since the line 39 prior registration.

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line 1 (g)  For purposes of verifying the information provided by a line 2 person registered with the division, an educational provider shall line 3 provide an approved curriculum of classroom instruction, and line 4 shall, upon the division’s request, provide the division with line 5 information regarding the enrollment status and instruction line 6 completed by an individual registered. By registering with the line 7 division in accordance with this section, the individual consents line 8 to the release of this information. line 9 (h)  The division shall establish registration fees in an amount

line 10 reasonably necessary to implement this section, not to exceed line 11 twenty-five dollars ($25) for the initial registration. There shall be line 12 no fee for annual renewal of registration. Fees shall be placed in line 13 the Cannabis Certification Fund, established pursuant to Section line 14 18135. line 15 (i)  Notwithstanding any other law, an uncertified person who line 16 has completed an approved curriculum of classroom instruction line 17 and is currently registered with the division may take the line 18 certification examination. The person shall be certified upon line 19 passing the examination and satisfactorily completing the requisite line 20 number of on-the-job hours required for certification. A person line 21 who passes the examination prior to completing the requisite hours line 22 of on-the-job experience shall continue to comply with subdivision line 23 (f). line 24 18135. The Cannabis Certification Fund is established as a line 25 special account in the State Treasury. Proceeds of the fund may line 26 be expended by the division, upon appropriation by the Legislature, line 27 for the costs of validating and certifying cannabis employees, as line 28 provided by this chapter, and shall not be used for any other line 29 purpose. line 30 line 31 Chapter 7. Regulation of Medical Marijuana

line 32 line 33 18136. (a)  A person shall not distribute any form of advertising line 34 for physician recommendations for medical marijuana in California line 35 unless the advertisement bears the following notice to consumers: line 36 line 37 NOTICE TO CONSUMERS: The Compassionate Use Act of line 38 1996 ensures that seriously ill Californians have the right to obtain line 39 and use marijuana for medical purposes where medical use is line 40 deemed appropriate and has been recommended by a physician

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line 1 who has determined that the person’s health would benefit from line 2 the use of medical marijuana. Physicians are licensed and regulated line 3 by the Medical Board of California and arrive at the decision to line 4 make this recommendation in accordance with accepted standards line 5 of medical responsibility. line 6 line 7 (b)  Advertising for physician recommendations for medical line 8 marijuana shall meet all requirements of Section 651. Price line 9 advertising shall not be fraudulent, deceitful, or misleading,

line 10 including statements or advertisements of bait, discounts, line 11 premiums, gifts, or statements of a similar nature. line 12 18137. (a)  A facility issued a conditional license shall line 13 implement sufficient security measures to both deter and prevent line 14 unauthorized entrance into areas containing marijuana and theft line 15 of marijuana at those facilities. These security measures shall line 16 include, but not be limited to, all of the following: line 17 (1)  Preventing individuals from remaining on the premises of line 18 the facility if they are not engaging in activity expressly related to line 19 the operations of the facility. line 20 (2)  Establishing limited access areas accessible only to line 21 authorized facility personnel. line 22 (3)  Storing all finished marijuana in a secured and locked room, line 23 safe, or vault, and in a manner as to prevent diversion, theft, and line 24 loss. line 25 (b)  A facility issued a conditional license shall notify appropriate line 26 law enforcement authorities within 24 hours after discovering any line 27 of the following: line 28 (1)  Discrepancies identified during inventory. line 29 (2)  Diversion, theft, loss, or any criminal activity involving the line 30 facility or a facility agent. line 31 (3)  The loss or unauthorized alteration of records related to line 32 marijuana, registered qualifying patients, personal caregivers, or line 33 facility agents. line 34 (4)  Any other breach of security. line 35 (c)  A licensed cultivation site shall weigh, inventory, and line 36 account for on video, all medical marijuana to be transported prior line 37 to its leaving its origination location. Within eight hours after line 38 arrival at the destination, the licensed dispensing facility shall line 39 reweigh, reinventory, and account for on video, all transported line 40 marijuana.

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line 1 18138. (a)  The bureau shall require an annual audit of all line 2 facilities issued a conditional license to cultivate, manufacture, line 3 process, transport, store, or sell medical marijuana. The reasonable line 4 costs of the audit shall be paid for by the licensee. line 5 (b)  Completed audit reports shall also be submitted by the line 6 licensee to local code enforcement offices, or the appropriate line 7 locally designated enforcement entity, within 30 days of the line 8 completion of the audit. line 9 (c)  It is the responsibility of each facility issued a conditional

line 10 license to develop a robust quality assurance protocol that includes line 11 all of the provisions of this part. line 12 18139. (a)  A laboratory certified by the bureau to perform line 13 random sample testing of medical marijuana products shall not line 14 acquire, process, possess, store, transfer, transport, or dispense line 15 medical marijuana for any purpose other than those authorized by line 16 Article 2.5 (commencing with Section 11362.7) of Chapter 6 of line 17 Division 10 of the Health and Safety Code. All transfer or line 18 transportation shall be performed pursuant to a specified chain of line 19 custody protocol. line 20 (b)  A laboratory certified by the bureau to perform random line 21 sample testing of medical marijuana products shall not acquire, line 22 process, possess, store, transfer, transport, or dispense medical line 23 marijuana plants or medical marijuana products except through a line 24 patient, primary caregiver, or a facility issued a conditional license. line 25 All transfer or transportation shall be performed pursuant to a line 26 specified chain of custody protocol. line 27 18140. (a)  Information identifying the names of patients, their line 28 medical conditions, or the names of their primary caregivers line 29 received and contained in records kept by the bureau for the line 30 purposes of administering this part are confidential and exempt line 31 from the California Public Records Act (Chapter 3.5 (commencing line 32 with Section 6250) of Division 7 of Title 1 of the Government line 33 Code) and are not subject to disclosure to an individual or private line 34 entity, except as necessary for authorized employees of the state line 35 to perform official duties pursuant to this part. line 36 (b)  (1)  Nothing in this section shall preclude any of the line 37 following: line 38 (A)  Bureau employees notifying state or local agencies about line 39 information submitted to the bureau that the employee suspects is line 40 falsified or fraudulent.

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line 1 (B)  Notifications from the bureau to state or local agencies of line 2 apparent violations of this part or an applicable local ordinance. line 3 (C)  Verification of requests by state or local agencies to confirm line 4 licenses and certificates issued by the bureau or other state agency. line 5 (D)  Providing information requested pursuant to a court order line 6 or subpoena issued by a court, an administrative agency, or local line 7 governing body authorized by law to issue subpoenas. line 8 (2)  Information shall not be disclosed beyond what is necessary line 9 to achieve the goals of a specific investigation or notification or

line 10 the parameters of a specific court order or subpoena. line 11 18141. (a)  The actions of a licensee, its employees, and its line 12 agents, that are permitted pursuant to a conditional license and that line 13 are conducted in accordance with the requirements of this part and line 14 regulations adopted pursuant to this part, are not unlawful under line 15 state law and shall not be an offense subject to arrest or line 16 prosecution. line 17 (b)  The actions of a person who, in good faith and upon line 18 investigation, allows his or her property to be used by a licensee, line 19 its employees, and its agents, as permitted pursuant to a conditional line 20 license, are not unlawful under state law and shall not be an offense line 21 subject to arrest or prosecution. line 22 (c)  This section shall not be deemed to limit the authority or line 23 remedies of a city, county, or city and county under any provision line 24 of law, including, without limitation, Section 7 of Article XI of line 25 the California Constitution. line 26 18142. (a)  A licensee shall not cultivate, process, store, line 27 manufacture, transport, or sell medical marijuana in the state unless line 28 accurate records are kept at the licensed premises of the growing, line 29 processing, storing, manufacturing, transporting, or selling by the line 30 licensee in the state. These records shall include the name and line 31 address of the supplier of marijuana received or possessed by the line 32 licensee, the location at which the marijuana was cultivated, the line 33 amount of marijuana received, the form in which it is received, line 34 the name of the employee receiving it, and the date of receipt. line 35 These records shall also include receipts for all expenditures line 36 incurred by the licensee and banking records, if any, for all funds line 37 obtained or expended in the performance of any activity under the line 38 authority of the conditional license. A licensee who has a line 39 conditional license for more than one premises may keep all records line 40 at one of the conditionally licensed premises. Required records

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line 1 shall be kept for a period of seven years from the date of the line 2 transaction. line 3 (b)  The bureau and an appropriate state or local agency may line 4 examine the books and records of a conditional licensee and may line 5 visit and inspect the premises of a conditional licensee, as the line 6 bureau or state or local agency deems necessary to perform its line 7 duties under this part. line 8 (c)  Books or records requested by the bureau or an appropriate line 9 state or local agency shall be provided by the conditional licensee

line 10 no later than five business days after the request is made. line 11 (d)  The bureau or a state or local agency may enter and inspect line 12 the premises of a facility issued a conditional license between the line 13 hours of 8 a.m. and 8 p.m. on any day that the facility is open, or line 14 at any reasonable time, to ensure compliance and enforcement of line 15 the provisions of this part or a local ordinance. line 16 (e)  If a licensee or an employee of a licensee refuses, impedes, line 17 obstructs, or interferes with an inspection pursuant to subdivision line 18 (d), the conditional license may be summarily suspended and the line 19 bureau shall directly commence proceedings for the revocation of line 20 the conditional license. line 21 (f)  If a licensee or an employee of a licensee fails to maintain line 22 or provide the books and records required pursuant to this section, line 23 the licensee shall be subject to a civil fine of fifteen thousand line 24 dollars ($15,000) per individual violation. line 25 SEC. 5. Section 23028 is added to the Government Code, to line 26 read: line 27 23028. (a)  (1)  In addition to any authority otherwise provided line 28 by law, the board of supervisors of any county may impose, by line 29 ordinance, a tax on the privilege of cultivating, dispensing, line 30 producing, processing, preparing, storing, providing, donating, line 31 selling, or distributing marijuana by a licensee operating pursuant line 32 to Chapter 18 (commencing with Section 26000) of Division 9 of line 33 the Business and Professions Code. The tax may be imposed for line 34 general governmental purposes or for purposes specified in the line 35 ordinance by the board of supervisors. line 36 (2)  The board of supervisors shall specify in the ordinance line 37 proposing the tax the activities subject to the tax, the applicable line 38 rate or rates, the method of apportionment, and the manner of line 39 collection of the tax. A tax imposed pursuant to this section is a line 40 tax and not a fee or special assessment, and the tax is not required

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line 1 to be apportioned on the basis of benefit to any person or property line 2 or be applied uniformly to all taxpayers or all real property. line 3 (3)  A tax imposed by a county pursuant to this section by a line 4 county may include a transactions and use tax imposed solely for line 5 marijuana or marijuana products, which shall otherwise conform line 6 to Part 1.6 (commencing with Section 7251) of Division 2 of the line 7 Revenue and Taxation Code. Notwithstanding Section 7251.1 of line 8 the Revenue and Taxation Code, the tax may be imposed at any line 9 rate specified by the board of supervisors, and the tax rate

line 10 authorized by this section shall not be considered for purposes of line 11 the combined tax rate limitation established by that section. line 12 (4)  The tax authorized by this section may be imposed upon line 13 any or all of the activities set forth in paragraph (1), regardless of line 14 whether the activity is undertaken individually, collectively, or line 15 cooperatively, and regardless of whether the activity is for line 16 compensation or gratuitously, as determined by the board of line 17 supervisors. line 18 (5)  The board of supervisors shall specify whether the tax applies line 19 throughout the entire county or within the unincorporated area of line 20 the county. line 21 (b)  In addition to any other method of collection authorized by line 22 law, the board of supervisors may provide for the collection of the line 23 tax imposed pursuant to this section in the same manner, and line 24 subject to the same penalties and priority of lien, as other charges line 25 and taxes fixed and collected by the county. line 26 (c)  Any tax imposed pursuant to this section shall be subject to line 27 applicable voter approval requirements imposed by any other law. line 28 (d)  For purposes of this section, “marijuana” shall have the line 29 meanings set forth in Section 18100 of the Business and line 30 Professions Code. line 31 (e)  This section does not limit or prohibit the levy or collection line 32 or any other fee, charge, or tax, or any license or service fee or line 33 charge upon, or related to, the activities set forth in subdivision line 34 (a) as otherwise provided by law. This section shall not be line 35 construed as a limitation upon the taxing authority of any county line 36 as provided by other law. line 37 SEC. 6. Section 11362.775 of the Health and Safety Code is line 38 amended to read: line 39 11362.775. (a)  Qualified patients, persons with valid line 40 identification cards, and the designated primary caregivers of

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line 1 qualified patients and persons with identification cards, who line 2 associate within the State of California in order collectively or line 3 cooperatively to cultivate marijuana for medical purposes, shall line 4 not solely on the basis of that fact be subject to state criminal line 5 sanctions under Section 11357, 11358, 11359, 11360, 11366, line 6 11366.5, or 11570. line 7 (b)  An individual employee, officer, or board member of a line 8 facility issued a conditional license pursuant to Part 5 line 9 (commencing with Section 18100) of Division 7 of the Business

line 10 and Professions Code shall not be subject to state criminal line 11 sanctions under Section 11357, 11358, 11359, 11360, 11366, line 12 11366.5, or 11570 and any successor statutes, based solely on line 13 holding a conditional license, for the possession, cultivation, line 14 processing, packaging, storage, transportation, sale, or distribution line 15 of medical marijuana to a facility holding a conditional license line 16 pursuant to Part 5 (commencing with Section 18100) of Division line 17 7 of the Business and Professions Code or directly to a qualified line 18 patient, a person with a valid identification card, or the designated line 19 primary caregiver of a qualified patient or person with a valid line 20 identification card, within the state, unless the information line 21 contained on the licensing paperwork is false or falsified, the line 22 license has been obtained by means of fraud, or the person is line 23 otherwise in violation of Part 5 (commencing with Section 18100) line 24 of Division 7 of the Business and Professions Code. line 25 (c)  This section shall not diminish the protections of Section line 26 18141 of the Business and Professions Code. line 27 SEC. 7. Article 8 (commencing with Section 111658) is added line 28 to Chapter 6 of Part 5 of Division 104 of the Health and Safety line 29 Code, to read: line 30 line 31 Article 8. Medical Marijuana line 32 line 33 111658. For purpose of this article, the following definitions line 34 shall apply: line 35 (a)  “Bureau” means the Bureau of Medical Marijuana line 36 Regulations in the Department of Consumer Affairs. line 37 (b)  “Certified testing laboratories” means a laboratory that is line 38 certified by the bureau to perform random sample testing of line 39 medical marijuana for patients, primary caregivers, and facilities line 40 issued conditional licenses pursuant to Part 5 (commencing with

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line 1 Section 18100) of Division 7 of the Business and Professions Code, line 2 pursuant to the certification standards for those facilities line 3 promulgated by the bureau. line 4 (c)  “Edible medical marijuana product” means medical line 5 marijuana or a medical marijuana-derived product that is ingested line 6 or meant to be ingested through the mouth and into the digestive line 7 system. line 8 (d)  “Marijuana” means all parts of the plant Cannabis sativa L. line 9 sativa, cannabis indica, or cannabis ruderalis, whether growing or

line 10 not; the seeds thereof; the resin, whether crude or purified, line 11 extracted from any part of the plant; and every compound, line 12 manufacture, salt, derivative, mixture, or preparation of the plant, line 13 its seeds, or resin. “Marijuana” does not include the mature stalks line 14 of the plant, fiber produced from the stalks, oil or cake made from line 15 the seeds of the plant, any other compound, manufacture, salt, line 16 derivative, mixture, or preparation of the mature stalks (except the line 17 resin extracted therefrom), fiber, oil, or cake, or the sterilized seed line 18 of the plant which is incapable of germination. “Marijuana” also line 19 means marijuana, as defined by Section 11018. line 20 (e)  “Labor peace agreement” means an agreement between an line 21 entity and a bona fide labor organization that, at a minimum, line 22 protects the state’s proprietary interests by prohibiting labor line 23 organizations and members from engaging in picketing, work line 24 stoppages, boycotts, and any other economic interference with the line 25 applicant’s business. This agreement means that the applicant has line 26 agreed not to disrupt efforts by the bona fide labor organization line 27 to communicate with, and attempt to organize and represent, the line 28 applicant’s employees. line 29 (f)  “Representative samples” means samples taken from each line 30 batch or shipment of medical marijuana received from a licensed line 31 cultivation site or any other source if intended for sale. line 32 111659. The bureau, by July 1, 2017, shall accomplish both line 33 of the following: line 34 (a)  Establish quality assurance protocols to ensure uniform line 35 testing standards for all medical marijuana sold via dispensaries line 36 or other facilities, or cultivated or manufactured by facilities, that line 37 are issued a conditional license pursuant to Part 5 (commencing line 38 with Section 18100) of Division 7 of the Business and Professions line 39 Code.

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line 1 (b)  In consultation with outside entities at its discretion, develop line 2 a list of certified testing laboratories that can perform uniform line 3 testing in compliance with this article, and post that list on its line 4 Internet Web site. line 5 111660. (a)  A facility issued a conditional license pursuant to line 6 Part 5 (commencing with Section 18100) of Division 7 of the line 7 Business and Professions Code shall bear the responsibility for line 8 contracting with certified testing laboratories for regular, systematic line 9 testing of representative samples of all medical marijuana cultivated

line 10 or intended for sale or distribution, and shall bear the cost of that line 11 testing. line 12 (b)  A facility issued a conditional license pursuant to Part 5 line 13 (commencing with Section 18100) of Division 7 of the Business line 14 and Professions Code shall maintain records of testing reports for line 15 seven years, either on site in a digital format or at a secure off-site line 16 location in either digital or paper format. These facilities shall line 17 provide results of test reports to local code enforcement officers, line 18 any other locally designated enforcement entity, and the bureau line 19 upon request. line 20 111661. Quality assurance protocols shall be required between line 21 all licensed cultivation sites, licensed manufacturers, and licensed line 22 dispensing facilities to guarantee safe and reliable medicinal line 23 marijuana delivery to all patients. These quality assurance protocols line 24 shall include: line 25 (a)  Providing supplier information to dispensaries in order for line 26 recall procedures to be implemented, if and when necessary. line 27 (b)  Safety testing of all medical marijuana prior to packaging line 28 for sale and patient exposure to identify and eliminate line 29 microbiological contaminants and chemical residue. line 30 (c)  Labeling of all medical marijuana and medical marijuana line 31 products that shall, at a minimum, include the following: line 32 (1)  List of pharmacologically active ingredients, including, but line 33 not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD) line 34 content, clear recommended dosage, and the size or volume of the line 35 recommended dose. line 36 (2)  Clear indication, in bold font, that the product contains line 37 medical marijuana. line 38 (3)  The statement “FOR MEDICAL USE ONLY. KEEP OUT line 39 OF REACH OF CHILDREN AND ANIMALS” in bold print.

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line 1 (4)  Identification of the source and date of cultivation and line 2 manufacture. line 3 (5)  The name and location of the dispensary providing the line 4 product. line 5 (6)  The date of sale. line 6 (7)  Any other requirements set by the bureau. line 7 111662. For purposes of this article, edible medical marijuana line 8 products are deemed to be unadulterated food products. In addition line 9 to the quality assurance standards provided in Section 111661, all

line 10 edible medical marijuana products shall comply with the following line 11 requirements: line 12 (a)  Baked edible medical marijuana products, including, but not line 13 limited to, brownies, bars, cookies, and cakes, tinctures, and other line 14 edible medical marijuana products that do not require refrigeration line 15 or hot holding may be manufactured, sold, or otherwise distributed line 16 at facilities issued a conditional license pursuant to Part 5 line 17 (commencing with Section 18100) of Division 7 of the Business line 18 and Professions Code. line 19 (b)  A facility issued a conditional license pursuant to Part 5 line 20 (commencing with Section 18100) of Division 7 of the Business line 21 and Professions Code shall have an owner or employee who has line 22 successfully passed an approved and accredited food safety line 23 certification examination as specified in Sections 113947.1, line 24 113947.2, and 113947.3 prior to selling, manufacturing, or line 25 distributing edible medical marijuana products requiring line 26 refrigeration or hot holding. line 27 (c)  Individuals manufacturing or selling edible medical line 28 marijuana products shall thoroughly wash their hands before line 29 commencing production and before handling finished edible line 30 medical marijuana products. line 31 (d)  All edible medical marijuana products sold for direct line 32 consumption and infused with marijuana concentrate shall be line 33 individually wrapped at the original point of preparation. The line 34 products shall be packaged in a fashion that does not exceed a line 35 single dosage for one individual. line 36 (e)  Products containing tetrahydrocannabinol (THC) shall be line 37 prepared in compliance with maximum potency standards for THC line 38 and THC concentrates set forth in the bureau’s regulations. line 39 (f)  Prior to sale or distribution at a licensed dispensing facility, line 40 edible medical marijuana products shall be labeled and in an

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line 1 opaque and tamper evident package. Labels and packages of edible line 2 medical marijuana products shall meet the following requirements: line 3 (1)  Edible medical marijuana packages and labels shall not be line 4 made to be attractive to children. line 5 (2)  All edible medical marijuana product labels shall include line 6 the following information, prominently displayed and in a clear line 7 and legible font: line 8 (A)  Manufacture date and source. line 9 (B)  The statement “KEEP OUT OF REACH OF CHILDREN

line 10 AND ANIMALS” in bold print. line 11 (C)  The statement “FOR MEDICAL USE ONLY.” line 12 (D)  Net weight of medical marijuana in package. line 13 (E)  A warning if nuts or other known allergens are used and line 14 shall include the total weight, in ounces or grams, of medical line 15 marijuana in the package. line 16 (F)  List of pharmacologically active ingredients, including, but line 17 not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD) line 18 content, clear recommended dosage, and the size or volume of line 19 recommended dose. line 20 (G)  Any other requirement set by the bureau. line 21 (g)  Photos or images of food are not allowed on edible medical line 22 marijuana product packages or labels. line 23 (h)  Only generic food names may be used to describe edible line 24 medical marijuana products. line 25 SEC. 8. Section 1155.7 of the Labor Code is amended to read: line 26 1155.7. (a)  Nothing in this chapter shall be construed to apply line 27 or be applicable to any a labor organization in its representation line 28 of workers who are not agricultural employees. Any such labor line 29 organization shall continue to be governed in its intrastate activities line 30 for nonagricultural workers by Section 923 and applicable judicial line 31 precedents. line 32 (b)  To the extent not prohibited by law and for purposes of this line 33 chapter, “agricultural employer” includes a licensed cultivation line 34 site or a licensed dispensing facility, as defined in subdivisions (i) line 35 and (j) of Section 18100 of the Business and Professions Code. line 36 SEC. 9. Section 1158.5 is added to the Labor Code, to read: line 37 1158.5. (a)  The Division of Occupational Safety and Health line 38 in the Department of Industrial Relations shall develop line 39 industry-specific regulations related to the activities of facilities line 40 issued a conditional license pursuant to Part 5 (commencing with

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line 1 Section 18100) of Division 7 of the Business and Professions Code, line 2 including provisions for the establishment of labor peace line 3 agreements and an apprenticeship program to ensure professional line 4 standards among industry employees. line 5 (b)  The regulations shall govern agreements between a facility line 6 issued a conditional license and a bona fide labor organization line 7 prohibiting labor organizations and members from engaging in line 8 picketing, work stoppages, boycotts, and other economic line 9 interference with the licensee’s business. The regulations shall

line 10 also govern agreements whereby the licensee has agreed not to line 11 disrupt efforts by the bona fide labor organization to communicate line 12 with, and attempt to organize and represent, the licensee’s line 13 employees. line 14 SEC. 10. Section 3094 is added to the Labor Code, to read: line 15 3094. The Division of Apprenticeship Standards shall line 16 investigate, approve, or reject applications for apprenticeship line 17 programs for employees of a licensed cultivation site or a licensed line 18 dispensing facility, as defined in subdivisions (i) and (j) of Section line 19 18100 of the Business and Professions Code. The Division of line 20 Apprenticeship Standards shall have the authority to issue rules line 21 necessary to implement and regulate the establishment of the line 22 apprenticeship programs described in this section. line 23 SEC. 11. The provisions of this act are severable. If any line 24 provision of this act or its application is held invalid, that invalidity line 25 shall not affect other provisions or applications that can be given line 26 effect without the invalid provision or application. line 27 SEC. 12. The Legislature finds and declares that Section 4 of line 28 this act imposes a limitation on the public’s right of access to the line 29 meetings of public bodies or the writings of public officials and line 30 agencies within the meaning of Section 3 of Article I of the line 31 California Constitution. Pursuant to that constitutional provision, line 32 the Legislature makes the following findings to demonstrate the line 33 interest protected by this limitation and the need for protecting line 34 that interest: line 35 The limitation imposed under this act is necessary for purposes line 36 of compliance with the federal Health Insurance Portability and line 37 Accountability Act of 1996 (42 U.S.C. Sec. 1320d et seq.), the line 38 Confidentiality of Medical Information Act (Part 2.6 (commencing line 39 with Section 56) of Division 1 of the Civil Code), and the Insurance

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line 1 Information and Privacy Protection Act (Article 6.6 (commencing line 2 with Section 791) of Part 2 of Division 1 of the Insurance Code). line 3 SEC. 13. No reimbursement is required by this act pursuant to line 4 Section 6 of Article XIIIB of the California Constitution because line 5 the only costs that may be incurred by a local agency or school line 6 district will be incurred because this act creates a new crime or line 7 infraction, eliminates a crime or infraction, or changes the penalty line 8 for a crime or infraction, within the meaning of Section 17556 of line 9 the Government Code, or changes the definition of a crime within

line 10 the meaning of Section 6 of Article XIII B of the California line 11 Constitution.

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Page 1

Agenda Item: 4

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 46

DEPARTMENT: City Manager's Office

PRESENTER: Matthew Levesque

RECOMMENDED ACTION

City Council adopt the recommendation of the City Council Legislative Subcommittee to support

Assembly Bill 46 (Lackey), which increases penalties for possession of controlled substances

commonly referred to as “date rape” drugs, and transmit letters of support to Assembly Member

Tom Lackey, Santa Clarita’s state legislative delegation, appropriate legislative committees,

Governor Brown, and the League of California Cities.

BACKGROUND

Assembly Bill 46 (AB 46) was introduced by Assembly Member Tom Lackey (R-36-Palmdale)

on December 1, 2014. On November 4, 2014, California voters passed the Safe Neighborhoods

and Schools Act, also known as Proposition 47. The intent of Proposition 47 was to reduce

prison overcrowding by reducing sentencing for many non-serious and non-violent property and

drug crimes. Under the law, the penalties for the possession of many controlled substances were

reduced from felonies to misdemeanors. Among the controlled substances for which penalties for

possession were reduced, the drugs Ketamine, gamma hydroxybutyric acid (GHB), and

flunitrazepam, which are drugs commonly used to incapacitate victims with the intention to

commit rape, were also included.

Assembly Bill 46 seeks to increase the penalties for possession of Ketamine, GHB, and

flunitrazepam from being penalized as a misdemeanor for individuals without prior convictions

for certain crimes, to become a "wobbler," which would provide prosecuting agencies with the

discretion to charge the offense as either a misdemeanor or felony regardless of an individual's

criminal history. The justification behind this legislation is that the drugs Ketamine, GHB, and

flunitrazepam are not drugs that are typically used for recreational purposes, rather by those who

intend to commit sexual assault.

Assembly Bill 46, as amended on March 17, 2015, was referred to the Assembly Committee on

Public Safety on March 18, 2015.

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Page 2

The City Council Legislative Subcommittee met on March 10, 2015, and recommends that the

City Council adopt a “support” position for Assembly Bill 46.

ALTERNATIVE ACTION

1. Adopt an "oppose” position on AB 46

2. Take no position on AB 46

3. Refer AB 46 back to the Legislative Subcommittee

4. Other direction as determined by the City Council

FISCAL IMPACT

No additional resources, beyond those contained within the adopted FY 2014/15 City budget, are

required for implementation of the recommended action.

ATTACHMENTS

Assembly Bill 46, As Amended 3/17/15

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AMENDED IN ASSEMBLY MARCH 17, 2015

AMENDED IN ASSEMBLY MARCH 4, 2015

california legislature—2015–16 regular session

ASSEMBLY BILL No. 46

Introduced by Assembly Members Lackey and Melendez(Principal coauthors: Senators Galgiani, Nielsen, and Vidak)

(Coauthors: Assembly Members Travis Allen, Baker, Brough,Gallagher, Gonzalez, Hadley, Kim, Linder, Patterson, Rodriguez,Steinorth, Waldron, and Wilk)

(Coauthors: Senators Anderson, Bates, Huff, and Stone)

December 1, 2014

An act to amend and repeal Sections 11350 and 11377 of the Healthand Safety Code, relating to controlled substances.

legislative counsel’s digest

AB 46, as amended, Lackey. Controlled substances.(1)  Existing law, as amended by the Safe Neighborhoods and Schools

Act, a measure approved by the voters at the November 4, 2014,statewide general election, generally provides that the possession ofKetamine, gamma hydroxybutyric acid (GHB), and flunitrazepam is amisdemeanor, punishable by imprisonment in the county jail for notmore than one year. Existing law also provides that when a person hasone or more prior convictions for certain enumerated crimes, his or herpossession of GHB is a felony, punishable by imprisonment in a countyjail for 16 months, or 2 or 3 years, and his or her possession of Ketamineand flunitrazepam is either a misdemeanor, punishable by imprisonmentin the county jail for not more than one year, or a felony, punishableby imprisonment in a county jail for 16 months, or 2 or 3 years.

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This bill would instead provide, without regard for a person’s priorconvictions, that possession of Ketamine and flunitrazepam is either amisdemeanor, punishable by imprisonment in a county jail for not morethan one year, or a felony, punishable by imprisonment in a county jailfor 16 months, or 2 or 3 years. The bill would also provide that thepossession of GHB by a person who does not have a prior convictionfor those certain enumerated crimes is either a misdemeanor, punishableby imprisonment in a county jail for not more than one year, or a felony,punishable in a county jail for 16 months, or 2 or 3 years. This bill wouldmake other technical, clarifying changes.

(2)  Proposition 47 provides that its provisions may be amended bya statute that is consistent with and furthers its intent and that is passedby a 2⁄3 vote of each house of the Legislature and is signed by theGovernor. Proposition 47 also provides that the Legislature may, bymajority vote, amend, add, or repeal provisions to further reduce thepenalties for offenses it addresses.

The California Constitution authorizes the Legislature to amend orrepeal an initiative statute by another statute that becomes effectivewhen approved by the electors.

This bill would provide that its provisions become effective only uponapproval of the voters at the next statewide election, and would providefor the submission of this measure to the voters for approval at thatelection.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: no.

The people of the State of California do enact as follows:

line 1 SECTION 1. The Legislature finds and declares all of the line 2 following: line 3 (a)  Ketamine, gamma hydroxybutyric acid (GHB), and line 4 Rohypnol are drugs often characterized as “date rape” drugs. line 5 (b)  GHB is a central nervous system depressant that was line 6 approved for the treatment of narcolepsy. GHB has no color or line 7 taste, and is frequently combined with alcohol to commit sexual line 8 assault. line 9 (c)  Ketamine causes unconsciousness, hallucinations, loss of

line 10 body control, and numbing. Ketamine works very quickly, so line 11 victims drugged with Ketamine only have a few seconds to react line 12 before losing consciousness.

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line 1 (d)  Rohypnol, also known by its chemical name of line 2 flunitrazepam, and sometimes referred to as “roofies,” impairs line 3 judgment and leaves victims drugged with Rohypnol physically line 4 incapacitated. Memory loss and confusion under the influence of line 5 this drug makes victims more vulnerable to rape. line 6 (e)  In order to deter the possession of Ketamine, GHB, and line 7 Rohypnol by sexual predators and to take steps to prevent the use line 8 of these drugs to incapacitate victims for purposes of sexual line 9 exploitation, it is necessary and appropriate that an individual who

line 10 possesses one of these substances be subject to felony penalties. line 11 SEC. 2. Section 11350 of the Health and Safety Code is line 12 amended to read: line 13 11350. (a)  (1)  Except as otherwise provided in this division, line 14 every person who possesses (1) a controlled substance specified line 15 in subdivision (b) or (c) of, or paragraph (1) or (2) of subdivision line 16 (e) of, or paragraph (1) of subdivision (f) of, Section 11054, line 17 specified in paragraph (14), (15), or (20) of subdivision (d) of line 18 Section 11054, or specified in subdivision (b) or (c) of Section line 19 11055, or specified in subdivision (h) of Section 11056, or (2) a line 20 controlled substance classified in Schedule III, IV, or V which is line 21 a narcotic drug, unless upon the written prescription of a physician, line 22 dentist, podiatrist, or veterinarian licensed to practice in this state, line 23 shall be punished by imprisonment in a county jail for not more line 24 than one year, except that such person shall instead be punished line 25 pursuant to subdivision (h) of Section 1170 of the Penal Code if line 26 that person has one or more prior convictions for an offense line 27 specified in clause (iv) of subparagraph (C) of paragraph (2) of line 28 subdivision (e) of Section 667 of the Penal Code or for an offense line 29 requiring registration pursuant to subdivision (c) of Section 290 line 30 of the Penal Code. line 31 (2)  (A)  Except as otherwise provided in subparagraph (B) and line 32 this division, every person who possesses a controlled substance line 33 specified in paragraph (3) of subdivision (e) of Section 11054 shall line 34 be punished by imprisonment in a county jail for not more than line 35 one year or pursuant to subdivision (h) of Section 1170 of the Penal line 36 Code. line 37 (B)  Except as otherwise provided in this division, every person line 38 who has one or more prior convictions for an offense specified in line 39 clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) line 40 of Section 667 of the Penal Code or for an offense requiring

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line 1 registration pursuant to subdivision (c) of Section 290 of the Penal line 2 Code who possesses a controlled substance specified in paragraph line 3 (3) of subdivision (e) of Section 11054 shall be punished by line 4 imprisonment pursuant to subdivision (h) of Section 1170 of the line 5 Penal Code. line 6 (b)  Except as otherwise provided in this division, whenever a line 7 person who possesses any of the controlled substances specified line 8 in subdivision (a), the judge may, in addition to any punishment line 9 provided for pursuant to subdivision (a), assess against that person

line 10 a fine not to exceed seventy dollars ($70) with proceeds of this line 11 fine to be used in accordance with Section 1463.23 of the Penal line 12 Code. The court shall, however, take into consideration the line 13 defendant’s ability to pay, and no defendant shall be denied line 14 probation because of his or her inability to pay the fine permitted line 15 under this subdivision. line 16 (c)  Except in unusual cases in which it would not serve the line 17 interest of justice to do so, whenever a court grants probation line 18 pursuant to a felony conviction under this section, in addition to line 19 any other conditions of probation which may be imposed, the line 20 following conditions of probation shall be ordered: line 21 (1)  For a first offense under this section, a fine of at least one line 22 thousand dollars ($1,000) or community service. line 23 (2)  For a second or subsequent offense under this section, a fine line 24 of at least two thousand dollars ($2,000) or community service. line 25 (3)  If a defendant does not have the ability to pay the minimum line 26 fines specified in paragraphs (1) and (2), community service shall line 27 be ordered in lieu of the fine. line 28 (d)  It is not unlawful for a person other than the prescription line 29 holder to possess a controlled substance described in subdivision line 30 (a) if both of the following apply: line 31 (1)  The possession of the controlled substance is at the direction line 32 or with the express authorization of the prescription holder. line 33 (2)  The sole intent of the possessor is to deliver the prescription line 34 to the prescription holder for its prescribed use or to discard the line 35 substance in a lawful manner. line 36 (e)  This section does not permit the use of a controlled substance line 37 by a person other than the prescription holder or permit the line 38 distribution or sale of a controlled substance that is otherwise line 39 inconsistent with the prescription.

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line 1 SEC. 3. Section 11350 of the Health and Safety Code, as line 2 amended by Section 1 of Chapter 540 of the Statutes of 2014, is line 3 repealed. line 4 11350. (a)  Except as otherwise provided in this division, every line 5 person who possesses (1) any controlled substance specified in line 6 subdivision (b) or (c), or paragraph (1) of subdivision (f) of Section line 7 11054, specified in paragraph (14), (15), or (20) of subdivision (d) line 8 of Section 11054, or specified in subdivision (b) or (c) of Section line 9 11055, or specified in subdivision (h) of Section 11056, or (2) any

line 10 controlled substance classified in Schedule III, IV, or V which is line 11 a narcotic drug, unless upon the written prescription of a physician, line 12 dentist, podiatrist, or veterinarian licensed to practice in this state, line 13 shall be punished by imprisonment pursuant to subdivision (h) of line 14 Section 1170 of the Penal Code. line 15 (b)  Except as otherwise provided in this division, every person line 16 who possesses any controlled substance specified in subdivision line 17 (e) of Section 11054 shall be punished by imprisonment in a county line 18 jail for not more than one year or pursuant to subdivision (h) of line 19 Section 1170 of the Penal Code. line 20 (c)  Except as otherwise provided in this division, whenever a line 21 person who possesses any of the controlled substances specified line 22 in subdivision (a) or (b), the judge may, in addition to any line 23 punishment provided for pursuant to subdivision (a) or (b), assess line 24 against that person a fine not to exceed seventy dollars ($70) with line 25 proceeds of this fine to be used in accordance with Section 1463.23 line 26 of the Penal Code. The court shall, however, take into consideration line 27 the defendant’s ability to pay, and no defendant shall be denied line 28 probation because of his or her inability to pay the fine permitted line 29 under this subdivision. line 30 (d)  Except in unusual cases in which it would not serve the line 31 interest of justice to do so, whenever a court grants probation line 32 pursuant to a felony conviction under this section, in addition to line 33 any other conditions of probation which may be imposed, the line 34 following conditions of probation shall be ordered: line 35 (1)  For a first offense under this section, a fine of at least one line 36 thousand dollars ($1,000) or community service. line 37 (2)  For a second or subsequent offense under this section, a fine line 38 of at least two thousand dollars ($2,000) or community service.

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line 1 (3)  If a defendant does not have the ability to pay the minimum line 2 fines specified in paragraphs (1) and (2), community service shall line 3 be ordered in lieu of the fine. line 4 (e)  It is not unlawful for a person other than the prescription line 5 holder to possess a controlled substance described in subdivision line 6 (a) if both of the following apply: line 7 (1)  The possession of the controlled substance is at the direction line 8 or with the express authorization of the prescription holder. line 9 (2)  The sole intent of the possessor is to deliver the prescription

line 10 to the prescription holder for its prescribed use or to discard the line 11 substance in a lawful manner. line 12 (f)  This section does not permit the use of a controlled substance line 13 by a person other than the prescription holder or permit the line 14 distribution or sale of a controlled substance that is otherwise line 15 inconsistent with the prescription. line 16 SEC. 3. line 17 SEC. 4. Section 11377 of the Health and Safety Code is line 18 amended to read: line 19 11377. (a)  Except as authorized by law and as otherwise line 20 provided in subdivision (b) or Section 11375, or in Article 3 line 21 (commencing with Section 4050) of Chapter 9 of Division 2 of line 22 the Business and Professions Code, every person who possesses line 23 a controlled substance which is (1) classified in Schedule III, IV, line 24 or V, and which is not a narcotic drug, (2) specified in subdivision line 25 (d) of Section 11054, except paragraphs (13), (14), (15), and (20) line 26 of subdivision (d), (3) specified in paragraph (11) of subdivision line 27 (c) of Section 11056, (4) specified in paragraph (2) or (3) of line 28 subdivision (f) of Section 11054, or (5) specified in subdivision line 29 (d), (e), or (f) of Section 11055, unless upon the prescription of a line 30 physician, dentist, podiatrist, or veterinarian, licensed to practice line 31 in this state, shall be punished by imprisonment in a county jail line 32 for a period of not more than one year, except that such person line 33 may instead be punished pursuant to subdivision (h) of Section line 34 1170 of the Penal Code if that person has one or more prior line 35 convictions for an offense specified in clause (iv) of subparagraph line 36 (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal line 37 Code or for an offense requiring registration pursuant to line 38 subdivision (c) of Section 290 of the Penal Code. line 39 (b)  Every person who possesses a controlled substance specified line 40 in subdivision (g) of Section 11056 or specified in paragraph (13)

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line 1 of subdivision (d) of Section 11057 shall be punished by line 2 imprisonment in a county jail for not more than one year or line 3 pursuant to subdivision (h) of Section 1170 of the Penal Code. line 4 (c)  The judge may assess a fine not to exceed seventy dollars line 5 ($70) against any person who violates subdivision (a), with the line 6 proceeds of this fine to be used in accordance with Section 1463.23 line 7 of the Penal Code. The court shall, however, take into consideration line 8 the defendant’s ability to pay, and no defendant shall be denied line 9 probation because of his or her inability to pay the fine permitted

line 10 under this subdivision. line 11 (d)  It is not unlawful for a person other than the prescription line 12 holder to possess a controlled substance described in subdivision line 13 (a) if both of the following apply: line 14 (1)  The possession of the controlled substance is at the direction line 15 or with the express authorization of the prescription holder. line 16 (2)  The sole intent of the possessor is to deliver the prescription line 17 to the prescription holder for its prescribed use or to discard the line 18 substance in a lawful manner. line 19 (e)  This section does not permit the use of a controlled substance line 20 by a person other than the prescription holder or permit the line 21 distribution or sale of a controlled substance that is otherwise line 22 inconsistent with the prescription. line 23 SEC. 5. Section 11377 of the Health and Safety Code, as line 24 amended by Section 2 of Chapter 540 of the Statutes of 2014, is line 25 repealed. line 26 11377. (a)  Except as authorized by law and as otherwise line 27 provided in subdivision (b) or Section 11375, or in Article 7 line 28 (commencing with Section 4211) of Chapter 9 of Division 2 of line 29 the Business and Professions Code, every person who possesses line 30 any controlled substance which is (1) classified in Schedule III, line 31 IV, or V, and which is not a narcotic drug, (2) specified in line 32 subdivision (d) of Section 11054, except paragraphs (13), (14), line 33 (15), and (20) of subdivision (d), (3) specified in paragraph (11) line 34 of subdivision (c) of Section 11056, (4) specified in paragraph (2) line 35 or (3) of subdivision (f) of Section 11054, or (5) specified in line 36 subdivision (d), (e), or (f) of Section 11055, unless upon the line 37 prescription of a physician, dentist, podiatrist, or veterinarian, line 38 licensed to practice in this state, shall be punished by imprisonment line 39 in a county jail for a period of not more than one year or pursuant line 40 to subdivision (h) of Section 1170 of the Penal Code.

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line 1 (b)  (1)  Any person who violates subdivision (a) by unlawfully line 2 possessing a controlled substance specified in subdivision (f) of line 3 Section 11056, and who has not previously been convicted of a line 4 violation involving a controlled substance specified in subdivision line 5 (f) of Section 11056, is guilty of a misdemeanor. line 6 (2)  Any person who violates subdivision (a) by unlawfully line 7 possessing a controlled substance specified in subdivision (g) of line 8 Section 11056 is guilty of a misdemeanor. line 9 (3)  Any person who violates subdivision (a) by unlawfully

line 10 possessing a controlled substance specified in paragraph (7) or (8) line 11 of subdivision (d) of Section 11055 is guilty of a misdemeanor. line 12 (4)  Any person who violates subdivision (a) by unlawfully line 13 possessing a controlled substance specified in paragraph (8) of line 14 subdivision (f) of Section 11057 is guilty of a misdemeanor. line 15 (c)  In addition to any fine assessed under subdivision (b), the line 16 judge may assess a fine not to exceed seventy dollars ($70) against line 17 any person who violates subdivision (a), with the proceeds of this line 18 fine to be used in accordance with Section 1463.23 of the Penal line 19 Code. The court shall, however, take into consideration the line 20 defendant’s ability to pay, and no defendant shall be denied line 21 probation because of his or her inability to pay the fine permitted line 22 under this subdivision. line 23 (d)  It is not unlawful for a person other than the prescription line 24 holder to possess a controlled substance described in subdivision line 25 (a) if both of the following apply: line 26 (1)  The possession of the controlled substance is at the direction line 27 or with the express authorization of the prescription holder. line 28 (2)  The sole intent of the possessor is to deliver the prescription line 29 to the prescription holder for its prescribed use or to discard the line 30 substance in a lawful manner. line 31 (e)  This section does not permit the use of a controlled substance line 32 by a person other than the prescription holder or permit the line 33 distribution or sale of a controlled substance that is otherwise line 34 inconsistent with the prescription. line 35 SEC. 4. line 36 SEC. 6. (a)  Sections 2 and 3 of this act amend the Safe line 37 Neighborhoods and Schools Act, Proposition 47, an initiative line 38 statute that was approved by the voters at the November 4, 2014, line 39 statewide general election, and shall become effective only when line 40 submitted to and approved by the voters.

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line 1 (b)  The Secretary of State shall submit Sections 1, 2, and 3 of line 2 this act for approval by the voters at the next statewide election line 3 pursuant to Section 9040 of the Election Code.

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Page 1

Agenda Item: 5

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: GOVERNOR BROWN'S REDEVELOPMENT DISSOLUTION

PROPOSAL

DEPARTMENT: City Manager's Office

PRESENTER: Matthew Levesque

RECOMMENDED ACTION

City Council adopt the recommendation of the City Council Legislative Subcommittee to oppose

Governor Brown’s Redevelopment Dissolution Proposal and transmit letters of opposition to

Governor Brown, Santa Clarita’s state legislative delegation, appropriate legislative committees,

and the League of California Cities.

BACKGROUND

Governor Jerry Brown recently released a draft proposal related to the dissolution of

redevelopment agencies, which is anticipated to be included within a budget trailer bill. The

proposed language strengthens the authority and limits the accountability of the Department of

Finance by reversing court decisions regarding the redevelopment dissolution process, changing

laws retroactively, undoing previous incentives, and limiting transparency, accountability, and

opportunities for local agencies to protect their legal rights.

The City of Santa Clarita (City) has been diligent in following all rules and regulations

associated with the dissolution of the Redevelopment Agency, including going through the

rigorous process of obtaining our finding of completion on June 20, 2013, and receiving approval

of our Long Range Property Management Plan, which we are currently in the process of

implementing. Despite our advancement through the redevelopment dissolution process, there

are several areas within the proposed rule changes which stand to negatively impact the City.

A primary area of concern for the City is related to the proposed language that changes the

criteria for which reinstated loans between the City and the former Redevelopment Agency

qualify for repayment. Under the current proposal, loans that reimburse the City for costs of

services or public improvements provided by third parties are not eligible to be repaid. This rule

would likely impact loans provided by the City of Santa Clarita to the former Redevelopment

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Agency, specifically for projects such as both phases of the Old Town Newhall Streetscape

Project along Main Street. Additionally, the proposed language would establish time limits for

the payment of reinstated loans within a redevelopment plan, meaning the City would not receive

full repayment of $13.4 million in loans.

The City’s Successor Agency recently received Oversight Board approval to reenter into a loan

repayment agreement between the City and the Successor Agency so that the City may be repaid.

This agreement is currently being reviewed by the Department of Finance; however, the

proposed language seeks to undo reentered agreements between cities and successor agencies. It

is unclear at this point whether this would impact the City loan discussion we are currently

having with the Department of Finance, but the City is concerned that this proposed language

could put the repayment of City loans in jeopardy.

The final area of concern is in regard to the proposed language to exempt the Department of

Finance from the Administrative Procedures Act, which would essentially allow the Department

of Finance to implement rules or guidelines without any input or public comments and provide

no way to challenge their determinations. Pairing this rule with the proposed rule’s additional

proposal to make it so that legal costs to challenge the Department of Finance or the State

Controller’s Office are no longer separate enforceable obligations, will make it virtually

impossible for cities to challenge the Department of Finance or the State Controller’s Office on

their rulings and ensure their accountability through the dissolution process.

The City Council Legislative Subcommittee met on March 10, 2015, and recommends an

“oppose” position to the full City Council.

ALTERNATIVE ACTION

1. Adopt a "support" position on the proposed RDA language

2. Take no position on the proposed RDA language

3. Refer the item back to the Legislative Subcommittee

FISCAL IMPACT

No additional resources, beyond those contained withing the adopted FY 2014/15 City budget,

are required for the implementation of the recommended action.

ATTACHMENTS

Key Issues With DOF RDA Dissolution Trailer Bill

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League of California Cities

Key Issues with DOF RDA Dissolution Trailer Bill1

The League of California Cities is Opposed to the following provisions due to their many harmful impacts on existing cities. We are asking legislators to either remove these provisions or reject the proposal in its entirety.

1) Overturns recent Court of Appeal decision upholding reentered agreements approved by Oversight Boards. This change seeks to overturn Emeryville v. Cohen and impacts and retroactively invalidates dozens of agreements validly entered into by cities and successor agencies around the state and approved by the governing Oversight Board in those jurisdictions based upon finding that the projects were in the best interests of all impacted taxing entities. (Section 34178, page 46, 47, 48; Subdivision (h) page 57 and 58). Many other cities are affected by this provision in addition to Emeryville: Bellflower; Citrus Heights; Coronado; Danville; Lawndale; Loma Linda; Petaluma; Riverside; San Leandro; Santa Rosa; Sunnyvale; Twenty-Nine Palms; Ukiah; Union City; and Watsonville.

2) Undoes incentives previously offered to successor agencies to make three required payments to become eligible for a DOF “finding of completion.” This proposal retroactively prohibits the reinstatement of reimbursement agreements between a city and a redevelopment agency for public improvements constructed by a third party; also makes these loans subject to RDA plan time limits that don’t apply to full repayment of other debts. (Subparagraph (2), page 67) also ((Section 34189, Page 64 and 65)

3) Retroactively undoes the effects of the February 13, 2015, ruling in Glendale v. DOF over the appropriate method of calculating interest rates on reinstated loans. Judge Chang of the Sacramento Superior Court recently issued a ruling that holds that the LAIF rate that would apply to the accumulated balance on a loan was the rate in effect over the life of the loan since origination. The judge rejected DOF’s contention that the rate was the current rate on a fixed date. The language (Subparagraph (3), on page 67) deletes the pertinent language relied on by the Court and substitutes a rate “up to” one percent. Such a change would be a major loss of funds needed by local agencies to provide public safety and other vital services, and also significantly reduces the 20% set-aside for affordable housing.

4) Undercuts local agency ability to protect legal rights by revoking statutory authority to recover legal costs outside of existing administrative cost cap. Existing law provides that litigation costs related to assets, obligations, settlements, and judgments are not part of the administrative cost allowance. This change would be a complete reversal of previous legislative authority. (Section 34171 (b), Page 2). The dispute resolution process established is clear: (1) oversight board approval; (2) DOF review of the ROPS; (3) an opportunity to “meet and confer” with DOF on outstanding issues; and (4) an opportunity to appeal any final DOF decisions in a Court of Law. Successor agencies have also had to respond to lawsuits filed against the successor agency by other parties. For efficiency, all cases were directed to the Sacramento Superior Court. This proposal restricts any litigation expenses to a limited administrative cost

1 Comments Based upon 02/18/15 version RN # 15 08847; this version currently has an urgency clause requiring a 2/3rds vote.

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allowance, which is even further constrained in other areas of this proposal2. Further limitations (Subdivision (F), page 6) prohibit a city’s ability to independently assist with litigation costs3. The objective of these provisions can have no other purpose but to severely limit a community’s ability to protect its legal rights.

5) Retroactively repeals authority for cities to make loans to successor agencies approved by oversight boards for “project-related expenses.” Imposes interest restrictions on other such loans and makes repayment subordinate to all other payments and only if funding available. When redevelopment was eliminated, many projects were underway, incomplete or required routine maintenance, continuation of security services, etc. To ensure such public investments did not languish or deteriorate, AB 26 authorized cities to loan funds to the successor agencies with the approval of the oversight boards. This provision retroactively reverses such authority and restricts the ability of the city to recover other such loans which were made in compliance with existing law and good faith. (Subdivision (h), Page 14)

6) Retroactively exempts all DOF actions from the Administrative Procedures Act. Redevelopment dissolution law has put DOF in a position of making thousands of quasi-judicial decisions with enormous financial and other consequences for affecting individual communities, properties and third parties. The proposed language (Section 34170.1, Page 2) deems such actions equivalent to “the preparation, development or administration of the state budget.” Should such a change be enacted --especially in combination with other aspects of this proposal which attempts to reduce an ability of a successor agency to challenge DOF actions in Court—it would insulate the department’s quasi-judicial decisions from needed transparency, accountability and scrutiny. This is especially troubling when in over two dozen cases Courts have ruled that DOF abused its discretion when administering RDA Dissolution Law.

7) Retroactively prohibits previously authorized work associated with “winding down” the work of a former redevelopment agency. Successor agencies are empowered to hire staff to assist with the work of “winding down” the former redevelopment agency. All of this activity is, of course, subject to review and approval of the oversight board. This proposal (Section 34177.3, Page 38 and 39) creates a long list of exclusions including “site remediation, removal of graffiti… and other similar work” to the term “winding down” and makes it retroactive. This change is puzzling, since successor agencies have an obligation to maintain the assets of the former redevelopment agency.

2 The amount available for the successor agency’s administrative cost allowance is further restricted by language (Subparagraph (3), Page 3) which requires the amounts of loans repaid to a city as well as the amount of a prior administrative cost allowance to be deducted before applying the 3% factor. Subparagraph (4) on Page 3 further restricts possible funding by imposing a maximum 50% cap. All of these restrictions ignore the existing authority of an oversight board to review a successor agency’s administrative cost allowance and reduce it where appropriate. This language should also be contrasted with (Subdivision (j) on Page 54) which authorizes a county auditor-controller to recover “all associated costs, including those of other county departments providing related services.” 3 Subdivision (h) on Page 14, repeals existing authority for a city to loan or grant funds to a successor agency. This language also excludes “grants” which appears to work in tandem with other aspects of this proposal designed to limit the ability of the successor agency to carry out the work of dissolving redevelopment.

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Other Issues: Provided the aforementioned harmful provisions are removed, many of the following provisions are, in isolation, potentially workable. The League is willing to work on these and other consensus-based changes to the dissolution process.

1. 2011 refunding bonds. Agreements between a city and successor agency to refunding or refinancing of bonds prior to June 27, 2011, is considered an enforceable obligation. (Subparagraph (2), Page 7)

2. Extension of RDA Time Limits to Repay Bond Debts: An issue that has arisen is how debts will be repaid if the time limits of a former redevelopment agency have expired. This proposal waives those limits for bond repayments only, so the question remains what happens to other enforceable obligations that remain to be paid. (Section 34189, Page 64 and 65)

3. Annual ROPS: Changes from 6-month to annual ROPS process commencing July 1, 2016. (Subdivision (h), Page 8), Pages 34-37.

4. Final and Conclusive: Provides DOF with 100 days to render a decision on a final and conclusive request. (Subdivision (i), Page 45 and 46)

5. Long Range Property Management Plans: Provides some helpful clarification that DOF does not need to review either (1) transfers of governmental property or (2) transfers of property to be retained for development pursuant to a DOF approved Long Range Property Management Plans. It appears, however, that transfers to a third party are missing from this list. (Subdivision (h), Pages 52 and 53)

6. Countywide Oversight Boards: There are a number of issues that are raised with the planned transition to countywide oversight boards. (Subdivision (j), Page 54)

7. Public Parking Lots: Adds parking lots to the list of facilities deemed to be for a governmental purpose, provided they do not generate revenue in excess of reasonable maintenance costs. (Subparagraph (2), page 59). Agencies with previously approved plans may amend their plans to incorporate these parking lots. (Subdivision (b), Page 66).

8. Auditor-Controller audits: Makes revisions to the existing audit process. Section 34186, Page 60 and 61).

9. Process for Dissolving Successor Agency following debt repayment: (Page 62, 63 and 64) 10. Optional Last and Final ROPS Process: Offers a last and final ROPS process to those agencies

where issues are resolved and debt repayment can be placed on autopilot. (Pages 72-79)

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Page 1

Agenda Item: 6

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: STATE LEGISLATION: ASSEMBLY BILL 278

DEPARTMENT: City Manager's Office

PRESENTER: Matthew Levesque

RECOMMENDED ACTION

City Council adopt the City Council Legislative Subcommittee's recommendation of an "oppose"

position for Assembly Bill 278 (Hernandez) and transmit position statements to Assembly

Member Hernandez, Santa Clarita’s state legislative delegation, appropriate legislative

committees, Governor Brown, and the League of California Cities.

BACKGROUND

Assembly Bill 278 (AB 278) would require a district-based election system to be adopted for the

election of members of the governing body of cities with a population of 100,000 or more, based

upon the latest federal decennial census. Under provisions of the bill, each district would have its

own representative, elected from the district by only the voters in that district. AB 278 does not

specify the number of districts to be created for each city, but existing law allows for general law

cities to have districts composed of five, seven, or nine representatives and also makes provisions

for cities which have a directly elected Mayor. The bill also specifies the process under which

district boundaries shall be drawn.

The City of Santa Clarita (City), with a population of approximately 209,130, stands to be

directly impacted by the proposed legislation. Currently, there are more than 20 general law

cities throughout the State of California (State) that would be impacted by the bill’s mandate to

adopt a district-based method of election under the proposed bill.

The City Council has traditionally opposed legislation that limits local control of municipal

public services. Under AB 278, the State would be directing that cities over a certain population

threshold must conduct district-based elections, as opposed to having the City Councils

determine the election system appropriate to the desires expressed by residents within their

particular jurisdictions. Furthermore, AB 278 is similar to AB 2715, which was introduced

during the 2013/14 session of the California Legislature and died in committee. The City

Council opposed AB 2715. Finally, in the 2015 City of Santa Clarita Legislative Platform, the

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City Council adopted the platform position "Oppose legislation that seeks to impose district-

based voting systems in municipal elections."

On March 10, 2015, the City Council Legislative Subcommittee met and recommends an

"oppose" position to the full City Council. On March 25, 2015, the Assembly Committee on

Elections and Redistricting approved AB 278. The measure is now awaiting hearing before the

Assembly Committee on Local Government.

On March 24, 2015, the Los Angeles County Board of Supervisors approved the City Council's

request for consolidation of the City's municipal election with the statewide general election to

be held in November of even-numbered years beginning in 2016, as contained in Santa Clarita

Ordinance No. 14-03. The City was able to enter into a Settlement Agreement resulting from a

California Voting Rights Act (CVRA) litigation without employing the use of a district-based

election system. AB 278 places a substantial burden on the City of Santa Clarita and other cities

with populations over 100,000 by seeking to resolve California Voting Rights Act concerns

through a specific state-mandated requirement, rather than allowing cities the flexibility to

resolve CVRA issues as provided under current law.

ALTERNATIVE ACTION

1. Adopt a "support" position for AB 278

2. Take no position on AB 278

3. Other direction as determined by the City Council

FISCAL IMPACT

No additional resources, beyond those contained within the adopted FY 2014/15 City budget, are

required for implementation of the recommended action.

ATTACHMENTS

Assembly Bill 278, As Amended 3/18/15

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AMENDED IN ASSEMBLY MARCH 18, 2015

california legislature—2015–16 regular session

ASSEMBLY BILL No. 278

Introduced by Assembly Member Roger Hernández

February 11, 2015

An act to amend Section 10010 of the Elections Code, and to addSection 34885 to the Government Code, relating to elections.

legislative counsel’s digest

AB 278, as amended, Roger Hernández. District-based municipalelections.

Existing law provides for political subdivisions that encompass areasof representation within the state. With respect to these areas, publicofficials are generally elected by all of the voters of the politicalsubdivision (at-large) or from districts formed within the politicalsubdivision (district-based). Existing law, the California Voting RightsAct of 2001, prohibits an at-large method of election to be imposed orapplied in a manner that impairs the ability of a protected class to electcandidates of its choice or its ability to influence the outcome of anelection, as a result of the dilution or the abridgment of the rights ofvoters who are members of a protected class, as defined.

Existing law authorizes the legislative body of a city to submit tovoters at any municipal or special election an ordinance providing forthe election of members of the legislative body by districts, fromdistricts, by districts with an elective mayor, or from districts with anelective mayor. Under existing law, “by district” means election ofmembers of the legislative body by voters of the district alone and “fromdistrict” means election of members of the legislative body who areresidents of the district from which they are elected by the voters of the

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entire city. Existing law prescribes the procedures for the electors tochange from the election of these members by district to election fromdistricts or vice versa.

This bill would require the legislative body of a city with a populationof 100,000 or more to adopt an ordinance, without submitting theordinance to the voters of the city for approval, for the election ofmembers of the legislative body by district. This The bill would requirethat the boundary lines of each district be adjusted in accordance withspecified provisions of law. existing law, except as otherwise providedin this bill. The bill would require the legislative body to hold publichearings before and after drawing a draft map of the proposedboundaries of the districts of the legislative body, as specified. The billwould also require the legislative body to take certain actions toencourage public participation in the drawing of the proposedboundaries and would require that the proposed boundaries satisfyspecified criteria.

By requiring certain cities to conduct elections for members of theirlegislative bodies in a specified manner, this bill would impose astate-mandated local program.

The California Constitution requires the state to reimburse localagencies and school districts for certain costs mandated by the state.Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandatesdetermines that the bill contains costs mandated by the state,reimbursement for those costs shall be made pursuant to these statutoryprovisions.

Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: yes.

The people of the State of California do enact as follows:

line 1 SECTION 1. Section 10010 of the Elections Code is amended line 2 to read: line 3 10010. (a)  A political subdivision not subject to the provisions line 4 of Section 34885 of the Government Code that changes from an line 5 at-large method of election to a district-based election shall hold line 6 at least two public hearings on a proposal to establish the district line 7 boundaries of the political subdivision prior to before a public line 8 hearing at which the governing body of the political subdivision line 9 votes to approve or defeat the proposal.

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line 1 (b)  This section applies to, but is not limited to, a proposal that line 2 is required due to a court-imposed change from an at-large method line 3 of election to a district-based election. line 4 (c)  For purposes of this section, the following terms have the line 5 following meanings: line 6 (1)  “At-large method of election” has the same meaning as set line 7 forth in subdivision (a) of Section 14026. line 8 (2)  “District-based election” has the same meaning as set forth line 9 in subdivision (b) of Section 14026.

line 10 (3)  “Political subdivision” has the same meaning as set forth in line 11 subdivision (c) of Section 14026. line 12 SECTION 1. line 13 SEC. 2. Section 34885 is added to the Government Code, to line 14 read: line 15 34885. (a)  (1)  Notwithstanding any other law, the legislative line 16 body of a city with a population of 100,000 or more shall adopt line 17 an ordinance, without submitting the ordinance to the electors of line 18 the city for approval, for the election of members of the legislative line 19 body by district as provided in subdivision (a) or (c) of Section line 20 34871. line 21 (2)  For purposes of this subdivision, the population of a city line 22 shall be determined by the most recent federal decennial census. line 23 (b)  The Except as otherwise provided in subdivisions (c) to (f), line 24 inclusive, the boundaries of the districts for the legislative body line 25 shall be established and adjusted in accordance with Chapter 7 line 26 (commencing with Section 21600) of Division 21 of the Elections line 27 Code. line 28 (c)  (1)  Before drawing a draft map of the proposed boundaries line 29 of the districts for the legislative body, the legislative body shall line 30 hold at least four public hearings where the public has the line 31 opportunity to provide input. The hearings shall occur over the line 32 course of at least 30 days. line 33 (2)  After the draft map of the proposed boundaries of the line 34 districts for the legislative body is drawn and published, the line 35 legislative body, before adopting the final map of the proposed line 36 boundaries, shall hold at least two public hearings in which the line 37 public has the opportunity to provide input. The hearings shall line 38 occur over the course of at least 30 days.

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line 1 (3)  A calendar of the hearings required by paragraphs (1) and line 2 (2) shall be prepared and published at least seven days before the line 3 first hearing to allow citizens to plan their attendance. line 4 (4)  The hearings required by paragraphs (1) and (2) shall do line 5 all of the following: line 6 (A)  Be held in locations accessible to people with disabilities. line 7 (B)  To the greatest extent possible, be held in numerous line 8 locations to maximize community participation. line 9 (C)  To the greatest extent possible, be held in locations

line 10 accessible by public transportation. line 11 (D)  To the greatest extent possible, be held on different days of line 12 the week and at varying times to maximize community line 13 participation. line 14 (5)  If requested at least 24 hours before a hearing required by line 15 paragraph (1) or (2), the legislative body shall provide line 16 simultaneous translation of the hearing in any language that meets line 17 the requirements of subdivision (c) of Section 14201 of the line 18 Elections Code in a precinct in the city. line 19 (d)  The legislative body of the city shall encourage public line 20 participation in the drawing of the boundaries of the districts for line 21 the legislative body by doing all of the following: line 22 (1)  Developing an outreach and education plan, and media and line 23 social media strategy, in partnership with community organizations line 24 and individuals that advocate on behalf of, or provide services to, line 25 non-English-speaking individuals and individuals with disabilities. line 26 (2)  For each hearing required by paragraph (1) or (2) of line 27 subdivision (c), publicize at least one public service announcement line 28 using a media outlet that serves English-speaking individuals for line 29 purposes of informing individuals of the boundary drawing process line 30 and the upcoming hearing date. line 31 (3)  For each hearing required by paragraph (1) or (2) of line 32 subdivision (c), publicize at least one public service announcement line 33 in each language that meets the requirements of subdivision (c) line 34 of Section 14201 of the Elections Code in a precinct in the city, line 35 using a media outlet that serves speakers of that language, for line 36 purposes of informing individuals of the boundary-drawing process line 37 and the upcoming hearing date. line 38 (4)  Publish an Internet Web site that explains the line 39 boundary-drawing process and its significance, that includes notice line 40 of the hearings required by paragraphs (1) and (2) of subdivision

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line 1 (c), and that explains how public testimony may be submitted. The line 2 Internet Web site shall be available in each language that meets line 3 the requirements of subdivision (c) of Section 14201 of the line 4 Elections Code in a precinct in the city. line 5 (5)  Provide the means for the submission of public testimony line 6 by mail, by telephone, online, and in person at the hearings line 7 required by paragraphs (1) and (2) of subdivision (c). line 8 (6)  Any other outreach of publicity the legislative body line 9 determines will encourage public participation in the drawing of

line 10 the boundaries of the districts for the legislative body. line 11 (e)  The legislative body shall ensure all of the following criteria line 12 are satisfied in preparing the boundaries of the districts for the line 13 legislative body: line 14 (1)  The boundaries are drawn to ensure fair and effective line 15 representation of all city residents including racial, ethnic, and line 16 language minorities. line 17 (2)  The boundaries conform to the requirements of the United line 18 State Constitution and all applicable federal and state laws. line 19 (3)  The boundaries respect communities of interest. line 20 (4)  The boundaries have substantially equal populations as line 21 determined by the most recent federal decennial census. line 22 (5)  The boundaries are geographically compact and contiguous. line 23 (6)  The boundaries are drawn without regard to the advantage line 24 or disadvantage of incumbents, challengers, or any political party. line 25 (f)  (1)  Communications between any party and the legislative line 26 body regarding the drawing of the boundaries of the districts for line 27 the legislative body shall be disclosed to the public and maintained line 28 by the city in a publicly available log. line 29 (2)   Communications related to the dissemination of the line 30 procedural information about the drawing of the boundaries of line 31 the districts for the legislative body, including, but not limited to, line 32 communications regarding the time and place of meetings or how line 33 to submit public testimony, are exempt from paragraph (1). line 34 SEC. 2. line 35 SEC. 3. If the Commission on State Mandates determines that line 36 this act contains costs mandated by the state, reimbursement to line 37 local agencies and school districts for those costs shall be made

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line 1 pursuant to Part 7 (commencing with Section 17500) of Division line 2 4 of Title 2 of the Government Code.

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Page 93: CITY OF SANTA CLARITA CITY COUNCIL / BOARD OF LIBRARY ... · City Council Chambers 23920 Valencia Blvd. Santa Clarita, CA 91355 AGENDA PUBLIC FINANCING AUTHORITY – No New Business

Page 1

Agenda Item: 7

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: JOHN RUSSELL DRIVE PEDESTRIAN BRIDGE REPLACEMENT,

PROJECT S1042 - AWARD CONSTRUCTION CONTRACT

DEPARTMENT: Public Works

PRESENTER: Damon Letz

RECOMMENDED ACTION

City Council:

1. Approve the plans and specifications for the John Russell Drive Pedestrian Bridge

Replacement, Project S1042.

2. Award the construction contract to Toro Enterprises, Inc., in the amount of $429,419, and

authorize a contingency in the amount of $42,942, for a total contract amount not to exceed

$472,361.

3. Appropriate $50,000 from Landscape Maintenance District Zone T-7 (357) Fund Balance

into account S1042357-5161.001.

4. Authorize the City Manager or designee to execute all necessary documents, subject to the

approval of the City Attorney.

BACKGROUND

The City of Santa Clarita's (City) Landscape Maintenance District is responsible for the

maintenance of all pedestrian bridges connecting the paseo system. This project will replace the

existing pedestrian bridge crossing John Russell Drive. This is the last timber bridge to be

replaced in the paseo system connecting the north, central, and south Valencia Valley

neighborhoods behind Granary Square shopping center, east of McBean Parkway. Due to its

deteriorated condition, the existing timber bridge will be replaced with a new prefabricated steel-

truss bridge. The substructure and superstructure require replacement as recommended in Los

Angeles County's bridge inspection report. The project scope will include removal and

replacement of the existing foundation, abutments, reconstruction of a portion of each of the

approaches, and repair and painting of the existing fencing along the approaches. As part of the

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ongoing effort to inform the local residents of construction activity in their community, City staff

has contacted the Central Valley Homeowners Association and Valencia Valley Elementary

School to inform them the pedestrian bridge crossing John Russell Drive will be replaced this

spring. City staff will contact nearby residents and the school and homeowners association prior

to the start of construction.

An invitation to bid was published three times: January 11, January 21, and January 31, 2015,

and was noticed on the City's website. Ten bids were submitted to the City and opened by

Purchasing on February 10, 2015. The results of the bids are shown below:

Company Location Bid Amount DRP Construction Encinitas, CA $425,923

Toro Enterprises, Inc. Oxnard, CA $429,419

AVA Builders, Inc. North Hollywood, CA $441,593

PALP, Inc., DBA Excel Paving Co. Long Beach, CA $453,131

Monet Construction Inc. Glendale, CA $467,930

Griffith Company Brea, CA $521,116

MGP Construction Upland, CA $580,522

Beador Construction Company, Inc. Corona, CA $590,300

G.B. Cooke, Inc. Azusa, CA $596,569

Future DB International, Inc. Irvine, CA $694,037

Upon reviewing the bids, City staff determined the bid from the apparent low bidder, DRP

Construction, is non-responsive due to failure to list the bridge supplier as directed by the

specifications. The apparent low bidder has an unfair advantage to shop for a bridge supplier

after the time of bid opening. Therefore, City staff recommends awarding the construction

contract to Toro Enterprises, Inc., the second-lowest bidder. Toro Enterprises, Inc., possesses a

valid state contractor's license and is in good standing with the Contractors State License Board.

The contractor's bid has been reviewed for accuracy and conformance to the contract documents

and found to be complete.

ALTERNATIVE ACTION

Other action as determined by the City Council.

FISCAL IMPACT

Landscape Maintenance District Funds (357) in the amount of $545,000 were previously

budgeted in project account S1042357-5161.001.The requested appropriation of LMD Zone T-7

(357) Funds in the amount of $50,000 creates a total project budget of $595,000. This amount

will provide for design expenditures to date and construction contract in the amount not to

exceed $472,361.

ATTACHMENTS

Location Map

Contract for Toro Enterprises, Inc. (available in the City Clerk's Reading File)

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Page 1

Agenda Item: 8

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: RESOLUTION TO RESTRICT COMMERCIAL VEHICLE USE ON

SAND CANYON ROAD BETWEEN SIERRA HIGHWAY AND

SOLEDAD CANYON ROAD

DEPARTMENT: Public Works

PRESENTER: Gus Pivetti

RECOMMENDED ACTION

City Council adopt a resolution restricting commercial vehicle use on Sand Canyon Road

between Sierra Highway and Soledad Canyon Road.

BACKGROUND

The Los Angeles County Board of Supervisors directed the Los Angeles County Department of

Public Works (County) to complete a study to determine the alternatives to restricting or limiting

the use of Sand Canyon Road between Sierra Highway and Soledad Canyon Road by large

commercial vehicles due to the narrow width and winding configuration of the roadway. Since

portions of the roadway are within the City of Santa Clarita's (City) jurisdiction, County staff

requested the City work with them to develop a recommendation both agencies can support.

Section 21101(c) of the California Vehicle Code authorizes local authorities, for those highways

under their jurisdiction, to adopt rules and regulations by ordinance or resolution to prohibit the

use of particular highways by certain vehicles. County staff, in consultation with the City, the

California Highway Patrol, and Los Angeles County Sheriff's Department, completed a

comprehensive engineering study and recommends the following restrictions:

A person shall not drive a commercial vehicle with three (3) or more axles or a gross vehicle

weight or a combined gross weight of 9,000 pounds or more on Sand Canyon Road between

Sierra Highway and Soledad Canyon Road. These axle and weight restrictions shall not apply

to the following:

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Those vehicles as otherwise provided by the Public Utilities Commission pursuant to

Article 2 (commencing with Section 1031) of Chapter 5 of Part 1 of Division 1 of the

Public Utilities Code, such as passenger stage corporations.

Those vehicles Pursuant to Section 35720 of the California Vehicle Code, as they pertain

to this resolution, including those vehicles making local deliveries.

A vehicle operated by a government agency.

A commercial vehicle involved in a motion picture, commercial, or television production

conducting motion picture, commercial, or television production activities in areas that

are accessible only from that portion of Sand Canyon Road specified above.

The County is processing an ordinance or resolution for the same commercial vehicle restrictions

on their portion of Sand Canyon Road between Sierra Highway and Soledad Canyon Road. The

City’s resolution will become effective when the Los Angeles County Board of Supervisors

approves the resolution or ordinance.

ALTERNATIVE ACTION

Other action as determined by the City Council.

FISCAL IMPACT

The installation of two signs on Sand Canyon Road is estimated at $1,000. Funds are available in

the Street Maintenance Traffic Signs and Markings expenditure account 14504-5141.008.

ATTACHMENTS

Location Map

Resolution

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RESOLUTION NO. 15- _______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,

CALIFORNIA, TO RESTRICT COMMERCIAL VEHICLE USE ON SAND CANYON ROAD

BETWEEN SIERRA HIGHWAY AND SOLEDAD CANYON ROAD

WHEREAS, the Los Angeles County Board of Supervisors directed the Los Angeles

County Department of Public Works (County) to complete a study to determine the alternatives

to restricting or limiting the use of Sand Canyon Road between Sierra Highway and Soledad

Canyon Road by large commercial vehicles due to the narrow width and winding characteristics

of the roadway; and

WHEREAS, County staff in consultation with the City of Santa Clarita (City), the

California Highway Patrol, and the Los Angeles County Sheriff’s Department completed a

comprehensive study of commercial vehicle operations on Sand Canyon Road; and

WHEREAS, portions of Sand Canyon Road between Sierra Highway and Soledad

Canyon Road are within the City of Santa Clarita’s jurisdiction; and

WHEREAS, Section 21101(c) of the California Vehicle Code states local authorities,

for those highways under their jurisdiction, may adopt rules and regulations by ordinance or

resolution prohibiting the use of particular highways by certain vehicles, except as otherwise

provided by the Public Utilities Commission pursuant to Article 2 (commencing with Section

1031) of Chapter 5 of Part 1 of Division 1 of the Public Utilities Code; and

WHEREAS, such resolution shall be effective when the Los Angeles County Board

of Supervisors approves an ordinance or resolution for similar commercial vehicle restrictions on

their portions of Sand Canyon Road between Sierra Highway and Soledad Canyon Road.

NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve

as follows:

SECTION 1. A person shall not drive a commercial vehicle with three (3) or more axles

or a gross vehicle weight or a combined gross weight of 9,000 pounds or more on Sand Canyon

Road between Sierra Highway and Soledad Canyon Road. These axle and weight restrictions

shall not apply to the following:

Those vehicles as otherwise provided by the Public Utilities Commission pursuant to

Article 2 (commencing with Section 1031) of Chapter 5 of Part 1 of Division 1 of the

Public Utilities Code, such as passenger stage corporations.

Those vehicles Pursuant to Section 35720 of the California Vehicle Code, as they

pertain to this resolution, including those vehicles making local deliveries.

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A vehicle operated by a government agency.

A commercial vehicle involved in a motion picture, commercial, or television

production conducting motion picture, commercial, or television production activities

in areas that are accessible only from that portion of Sand Canyon Road specified

above.

SECTION 2. This resolution shall apply to those portions of Sand Canyon Road, which

are within the City of Santa Clarita’s jurisdiction.

SECTION 3. Staff shall install the necessary new signs to affect this resolution.

SECTION 4. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this __th

day of ________ 2015.

______________________________

MAYOR

ATTEST:

_______________________________

CITY CLERK

DATE:__________________________

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STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )

I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the

foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a

regular meeting thereof, held on the __th

day of ________ 2015, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

______________________________

CITY CLERK

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Page 1

Agenda Item: 9

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: RENEWAL OF SUPPORT FOR SANTA CLARITA VALLEY

ECONOMIC DEVELOPMENT CORPORATION (SCVEDC) TO

CONTINUE FUNDING FOR THREE YEARS

DEPARTMENT: Community Development

PRESENTER: Jason Crawford

RECOMMENDED ACTION

City Council:

1. Authorize expenditures for the renewal of support for the Santa Clarita Valley Economic

Development Corporation (SCVEDC) from the Economic Development budget (Account

Number 11301-5171.005), for three consecutive fiscal years (FY 2015/2016, FY 2016/2017,

and FY 2017/2018), in the amount of $200,000 annually.

2. Authorize the City Manager or his designee to negotiate and execute a three-year renewal

agreement with the SCVEDC, subject to City Attorney approval.

BACKGROUND

On November 10, 2009, the City Council approved an agreement between the City of Santa

Clarita (City) and the Santa Clarita Valley Economic Development Corporation (SCVEDC)

in the amount of $200,000 for initial start-up costs and creation of a local economic development

corporation. On May 20, 2011, the City Council approved the FY 2010/2011 investment of

$200,000, and on May 8, 2012, approved the FY 2011/2012 investment of $200,000. On

April 9, 2013, the City Council approved the investment of $200,000 for the next three

consecutive years (FY 2012/2013, FY 2013/2014, and FY 2014/2015).

In the five years since the SCVEDC was formed, the SCVEDC has helped over 275 companies,

attracting over 10,000 jobs to the Santa Clarita Valley. At the City Council meeting on

January 27, 2015, a presentation was given by Holly Schroeder, the SCVEDC President & CEO,

and Don Fleming, the co-chairman of the SCVEDC, outlining the SCVEDC’s accomplishments

in 2014 and their goals for 2015.

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In 2014, the SCVEDC provided assistance to over 100 companies and, through business

attraction and expansion efforts, attracted or retained 69 businesses and 1,000 jobs in the Santa

Clarita Valley (SCV). Major attraction efforts included the relocation of Sunkist’s corporate

headquarters to the SCV, which represents 50,000 square feet of positive absorption in office

space, further reducing SCV’s vacancy rate and adding an estimated 200 jobs. The SCVEDC

also assisted Samsung, who selected Santa Clarita as the location for a new research and

development lab. Additionally, California Resources Corporation is establishing a 20,000

square-foot production and technology center in the Valencia Corporate Park with the assistance

of the SCVEDC, adding 38 jobs.

Furthermore, in 2014 the SCVEDC worked with the City and Los Angeles County (County) in

a final effort to market the SCV Enterprise Zone and ensure that companies eligible for the

Enterprise Zone credit received as many benefits as possible. The SCVEDC held multiple

workshops to get the word out before the conclusion of the program on December 31, 2014,

and assisted an additional 16 companies with voucher credits for 177 jobs.

The SCVEDC has identified the following among their goals for 2015 business attraction and

retention and expansion efforts:

o Make contact with at least 300 target companies in the Los Angeles & Ventura County

regions, focusing on areas within 50 miles of the SCV;

o Contact target companies with leases expiring in the upcoming 30 months in the Los

Angeles & Ventura County regions, focusing on areas within 50 miles of the SCV;

o Provide client follow-up with community information and location comparisons;

o Provide assistance and help facilitate relocation transactions;

o Conduct Business Expansion & Retention (BEAR) assistance/survey visits with the

largest regional employers;

o Conduct business visits with the Santa Clarita Valley Chamber of Commerce (Chamber)

and Valley Industry Association (VIA), surveying at least 50 companies; and

o Identify retention leads by contacting SCV businesses with upcoming lease expirations.

The overall financial goal of the SCVEDC is to continue to raise private capital so as to decrease

the amount of public capital investment needed to support the organization. By working through

the SCVEDC, business and community leaders are supporting regional economic development.

Each member of the SCVEDC Board is also an investor, sharing his or her time, financial

support, and leadership ability. This is an effective public/private partnership.

The expectation continues to be that the SCVEDC's efforts complement the City's efforts, and do

not compete with the existing economic development efforts and investment of the City, County,

Chamber, VIA, and College of the Canyons, as well as the commercial real estate professionals

involved in economic development efforts in the SCV. Additionally, the expectation is that the

City will obtain a return on its investment that is greater than the annual commitments through

the matching commitments and leveraging of public and private dollars.

ALTERNATIVE ACTION

Other actions as determined by City Council.

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FISCAL IMPACT

Upon City Council approval of the recommended action, $200,000 will be included in the budget

(Account Number 11301-5171.005) for three consecutive fiscal years (FY 2015/2016, FY

2016/2017, and FY 2017/2018). The total amount will be paid upon successful annual updates

to City Council, pursuant to the terms of the agreement.

ATTACHMENTS

SCVEDC_2015-2020 Draft Agreement

SCVEDC Request for Contract Extension

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Agreement between the City of Santa Clarita and the

Santa Clarita Valley Economic Development Corporation

Contract No.

I. Purpose. Pursuant to the direction of the Santa Clarita City Council on April 14, 2015, the

City of Santa Clarita ("City"), a municipal corporation, will provide the Santa Clarita Valley

Economic Development Corporation ("SCVEDC"), a 50l(c)(3) corporation, an investment in the

amount up to $200,000 annually for three consecutive fiscal years (FY 2015/2016, FY 2016/2017,

and FY 2017/2018).

II. Restrictions. This renewal of financial investment in the SCVEDC will be provided as

follows:

$200,000 upon full execution of this document for FY 2015/2016

The Economic Development Corporation will provide the City Council with an

annual update on accomplishments during a regularly-scheduled City Council

Meeting. The annual update should take place during the first quarter of every

calendar year during the term of this agreement.

$200,000 upon successful annual update to City Council each year (FY 2016/2017,

FY 2017/2018)

The City reserves the right to terminate the agreement if the annual performance

update is deemed unsatisfactory by City Council.

III. Appointment. The SCVEDC agrees and the City hereby accepts a position as a Director on

the SCVEDC Board of Directors and a member of the SCVEDC Executive Committee. The

position may be filled by the City Manager, or in the City Manager's absence, the designee of the

City Manager.

IV. Term. This support is a pledge of a three-year commitment of investment in the following

amounts: $200,000 annually for three consecutive fiscal years (FY 2015/2016, FY 2016/2017,

and FY 2017/2018).

V. Indemnification. SCVEDC agrees to indemnify and hold City harmless from and against any

claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability,

arising out of the performance of this Agreement by SCVEDC. Should City be named in any suit,

or should any claim be brought against it by suit or otherwise, arising out of performance by

SCVEDC of services rendered pursuant to this Agreement, SCVEDC will defend City (at City

request and with counsel satisfactory to City) and will indemnify City for any judgment rendered

against it or any sums paid out in settlement or costs incurred in defense otherwise.

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IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year

first hereinabove written.

FOR SANTA CLARITA VALLEY ECONOMIC DEVELOPMENT CORPORATION:

By:

Print Name & Title

Date:

FOR CITY OF SANTA CLARITA:

KENNETH W. STRIPLIN, CITY MANAGER

By:

City Manager

Date:

ATTEST:

By:

City Clerk

Date:

APPROVED AS TO FORM:

JOE MONTES, CITY ATTORNEY

By:

City Attorney

Date:

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26455 Rockwell Canyon Road | University Center, Suite 263 | Santa Clarita, CA 91355 Phone (661) 288-4400 | Fax (661) 288-4414 | www.scvedc.org

March 13, 2015 Mr. Ken Striplin City Manager, City of Santa Clarita 23920 Valencia Blvd. Santa Clarita, CA 91355 Dear Ken, In the five years since the Santa Clarita Valley Economic Development Corporation was formed, SCVEDC has helped over 275 companies, attracting over 10,000 jobs to the Santa Clarita Valley. In the short time SCVEDC has existed, it has become a vital community resource, actively working to chart a course for the future prosperity of the Santa Clarita Valley. SCVEDC focuses on four priorities:

1) Business Attraction, particularly to attract our target business clusters of Aerospace & Defense, Medical Devices, Advanced Manufacturing, Information Technology, and Digital Media & Entertainment. We also seek Corporate HQ and the profession services firm needed to service our business community.

2) Business Retention, to identify local opportunities for expansion and to identify at-risk companies.

3) Community Marketing, to help business leaders inside the Valley and beyond understand why the Santa Clarita Valley is Still Golden®.

4) Economic Information, to provide our leaders with the information they need to make decisions for future success of their businesses and for our Valley.

As a partnership between the City of Santa Clarita, the County of Los Angeles, local business leaders, and the College of the Canyons, SCVEDC is positioned to serve as the single point of contact to help businesses access incentives and resources that help them be globally competitive. This structure is uniquely designed to make us the most effective organization we can be. We respectfully request that the City of Santa Clarita renew its support for SCVEDC by authorizing $200,000 annually for the next three years. These funds are matched by an equal amount from the County of Los Angeles and are currently exceeded by private sector contributions. If desired, we will continue to provide an annual report on accomplishments to the City Council. Thank you for your consideration. Sincerely,

Don Fleming Calvin Hedman SCVEDC Co-Chair SCVEDC Co-Chair

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Page 1

Agenda Item: 10

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: MODIFICATION OF URBAN FORESTRY CONTRACT

DEPARTMENT: Administrative Services

PRESENTER: Kevin Tonoian

RECOMMENDED ACTION

City Council:

1. Amend the City’s contract with Stay Green, Inc. (Contract No. 13-00341) for City-wide tree

maintenance services, by authorizing an ongoing expenditure increase of $240,000, for a

total contract amount not to exceed $1,093,550, plus Consumer Price Index adjustments.

2. Authorize the City Manager or designee to execute all documents subject to City Attorney

final document approval, contingent upon the appropriation of funds by the City Council, in

the annual budget for such fiscal year.

BACKGROUND

On August 27, 2013, the City Council awarded a contract to Stay Green, Inc., a local-based

company, to perform tree-maintenance services for an amount not to exceed $853,550, plus

Consumer Price Index adjustments. This contract is in the second year of its initial three-year

term and allows for two incremental, one-year renewal options, which can be exercised at the

City Council’s discretion.

Santa Clarita encompasses more than 125,000 trees, of which half are located within the public

right-of-way and maintained within our Landscape Maintenance District (LMD) areas. Urban

Forestry’s maintenance program seeks to address tree-related issues by minimizing exposure to

liability and mitigating instances of deferred maintenance which are frequently seen in other

communities. Urban Forestry strives to keep pace with the level of service requests generated by

the community in a manner which is responsive and fiscally responsible.

During the first seven months of Fiscal Year 2014-15, beyond maintaining its forecasted annual

tree-pruning schedule, Urban Forestry has experienced an increase in tree-service requests in

conjunction with various City projects. Projects include the Sidewalk Replacement Program,

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Page 2

Slurry and Overlay Program, Open Space activities, and City-Wide Reforestation. As a result,

the demand for tree maintenance and removal services was larger than anticipated by staff.

Through the end of February 2015, Stay Green, Inc.'s contract expenditures related to tree

maintenance and removal services exceeds $600,000. While adequate funds to cover this

operation are available in the Fiscal Year 2014-15 LMD budget, staff anticipates reaching the

current contract expenditure limit prior to the end of April 2015.

In order to maintain regular tree-pruning maintenance and continue performing extra tree work

as required for City projects, staff is requesting approval to increase Stay Green, Inc.'s annual

contract expenditure authority by $240,000, for a total annual contract not to exceed $1,093,550.

Increasing the expenditure threshold for this contract will enable the City to continue responding

to and addressing tree-related service needs for the remainder of the contract period, at the

competitively awarded rates.

ALTERNATIVE ACTION

Other action as determined by the City Council.

FISCAL IMPACT

Adequate funds for this contract are available in the Fiscal Year 2014-15 Landscape

Maintenance Districts Budget. There is no fiscal impact to the General Fund.

ATTACHMENTS

13-00341 SGI Trees Contract (available in the City Clerk's Reading File)

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Page 1

Agenda Item: 11

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR

_____________________ CITY MANAGER APPROVAL:

DATE: April 14, 2015

SUBJECT: CHECK REGISTER NO. 7 FOR THE PERIOD 03/06/15 THROUGH

03/19/15 AND 03/26/15. ELECTRONIC FUNDS TRANSFERS FOR

THE PERIOD 03/13/15 THROUGH 03/26/15.

DEPARTMENT: Administrative Services

PRESENTER: Carmen Magana

RECOMMENDED ACTION

City Council approve and ratify for payment the demands presented in Check Register No. 7.

BACKGROUND

Check Register No. 7 for the Period 03/06/15 through 03/19/15 and 03/26/15 in the aggregate

amount of $3,126,072.80.

Electronic Funds Transfers included in Check Register No. 7 for the Period 03/13/15 through

03/26/15 in the aggregate amount of $557,874.14.

FISCAL IMPACT

No Fiscal Impact.

ATTACHMENTS

Memo

Check Register No. 7 (available in the City Clerk's Reading File)

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