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AB 2031 (Bonta) — The City adopted a support position on this bill. This measure allows cities or counties to pass an ordinance to issue bonds for affordable housing without raising taxes or diverting property taxes from other sources. AB 2031 allows cities or counties to access their net available revenue, commonly referred to as boomerang funds, to use bonds for affordable housing. The Governor signed this measure on September 22, 2016. SB 443 (Mitchell) — The City adopted an oppose position on this bill last year. This bill, which deals with the circumstances under which law enforcement can seize assets was amended at the end of session to remove the main concerns of law enforcement associations. The final version of the bill states that a conviction is required for the forfeiture of assets, accept for cash seizures more than $40,000. The Governor signed this measure on September 29, 2016. o SB 969 (Nguyen) — The City adopted a support position on this bill. This measure permits a facility to sell Vietnamese rice cakes that have been at room temperature for up to 24 hours. The Governor signed this measure on August 25, 2016. Medicinal Cannabis: Three of the major bills relating to medicinal cannabis that were introduced last session failed to pass out of the Legislature. The Legislature is likely to introduce numerous bills related to cannabis in the new session, a major focus will be on reconciling medical cannabis laws with the recently approved Proposition 64 that was on the November ballot. Additionally, the Administration is working to finalize regulations for medicinal and adult use of cannabis so that they can begin issuing permits in January 2018. o AB 1575 (Bonta) — This bill contained numerous clean-up provisions to the medicinal cannabis framework adopted in 2015, as well as new provisions in several areas, including: licensing authorities and restrictions, dispensaries and deliveries, research and development, testing, and local authority for fees and ordinances. This bill was held in the Senate Appropriations committee. AB 2243 (Wood) — This bill would have imposed a tax on the distribution in this state by a licensed cultivator of medical cannabis flowers, medical cannabis leaves, and immature medical cannabis plants to a licensed distributor and would require the licensed distributor to collect the tax from the cultivator and remit it to the State Board of Equalization. Revenues would be used fund competitive grants for local law enforcement -related activities pertaining to illegal cannabis cultivation; to fund environmental cleanup restoration and protection of public and private lands that have been damaged by illegal cannabis cultivation; and to address the environmental impacts of cannabis cultivation on public and private lands in California and fund other state enforcement -related activities pertaining to illegal cannabis cultivation. This bill was held in the Senate Appropriations committee. o AB 2300 (Wood) — This bill would provide that a qualified patient is not permitted to engage in the smoking of medical marijuana in any location that is prohibited by a landlord. This failed to pass off the Senate Floor. Other Items of Interest: o AB 2444 (Garcia) —This bill proposed to place a park bond on the November 2016 ballot. The final version of the bill proposed a total bond amount of $3.5 billion for 2016 Year End Legislative Update A February 13, 2017 19E-4 2 EXHIBIT 1