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have an impact on California and its residents. It is likely that there will be legislation to deal with issues where the State and Federal government disagree, such as immigration, environmental regulation, and sanctuary cities. Governor Brown, in his State of the State Address, confirmed that he will work to defend Californians from the Trump Administration. The Governor also indicated that California cannot just be on the attack, but must find areas in which it can work with the new President. Once such area may be on critical infrastructure projects in California; the President has already begun to talk about a broad proposal to build infrastructure throughout the country, and Governor Brown has submitted a list of over 50 projects in California that could fit into the President's proposal. Below are items that have either been introduced, or are likely to be introduced, that may be of interest to the City: Sanctuary Cities — With the election of President Trump, there has been a focus on what activities the new Administration poses as they relate to immigration. During the President Trump's first days in office, he signed several Executive Orders, including one relating to increased immigration enforcement. In his Executive Order, the President asked federal agencies to look at ways in which the federal government may be able to withhold funding from sanctuary cities. Knowing that the topic of sanctuary cities was likely to draw the attention of the new Administration, Senate Pro Tern De Leon introduced legislation earlier this year, SB 54, that would limit state and local law enforcement agencies involvement in immigration enforcement, as well as ensure that individuals can seek services and interact with state agencies without regard to their immigration status. This legislation is a high priority for the Pro Tern and has already passed out of its first policy committee. During the committee hearing, numerous individuals and organizations testified in favor of the measure, including Council Member Tinajero. In addition to the introduction of SB 54, the Legislature and Governor Brown have indicated that they will use their power and authority to protect Californians, to the fullest extent possible, from federal authorities. Other measures have already been introduced in the Legislature that would provide legal services to those that are facing deportation, eliminate the ability of local governments to enter or extend contracts to detain immigrants facing deportation proceedings. While not included in the January Budget release by Governor Brown, it is likely that the Legislature will look to discuss potential funding options for sanctuary cities should the Trump Administration decide to withhold federal funding. The State, as well as sanctuary cities, receive significant levels of funding from the federal government and it is unclear what funding, if any, could legally be withheld from individual cities or from the State. The topic of funding for sanctuary cities will likely emerge as the Legislature conducts Budget Committee hearings and the Governor prepares to issue the May Revise; unless federal actions require the State to take more immediate action. Transportation Infrastructure — As indicated above, finding a long-term solution for the funding of transportation infrastructure remains a key item for the Governor, the Senate Pro Tem, and the Assembly Speaker. The Governor included his transportation infrastructure proposal from last year as part of his January Budget. Additionally, AB 1 (Frazier) and SB 1 (Beall) have been introduced in the Legislature and both contain proposals for raising billions of dollars for transportation infrastructure. (D 2016 Year End Legislative Update February 13, 2017 19E-7 5 EXHIBIT 1