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AB-171 East Kern Airport District: temporary negotiable notes.(2017-2018)

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Date Published: 05/25/2017 09:00 PM
AB171:v98#DOCUMENT

Amended  IN  Senate  May 25, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 171


Introduced by Assembly Member Lackey Members Lackey and Fong

January 17, 2017


An act to amend Section 19353 of the Business and Professions Code, relating to cannabis. An act to add Section 22557.3 to the Public Utilities Code, relating to aviation.


LEGISLATIVE COUNSEL'S DIGEST


AB 171, as amended, Lackey. Medical Cannabis Regulation and Safety Act: licensure: reporting. East Kern Airport District: temporary negotiable notes.
The California Airport District Act provides for the formation, organization, and operation of airport districts and authorizes airport districts to issue temporary negotiable notes at not more than 8% interest and not exceeding $500,000 in total amount outstanding. Existing law relating to the maximum rate on notes issued by a local agency generally provides that the rate may not exceed 12% per year. The act requires that any note proposed to be issued pursuant to the act with a term longer than 5 years not be issued until after a public hearing is conducted with respect to the issuance and a resolution is adopted approving the issuance, as specified.
This bill would authorize the East Kern Airport District to issue these notes at a rate not greater than the maximum rate permitted by the law relating to notes issued by a local agency generally, and not exceeding $10,000,000 in total amount outstanding.

Existing law, the Medical Cannabis Regulation and Safety Act (MCRSA), authorizes a person who obtains both a state license under the MCRSA and the relevant local license to engage in commercial medical cannabis activity pursuant to those licenses, as specified. The act authorizes a licensing authority, as defined, to issue a state license to qualified applicants engaging in commerical cannabis activity, subject to certain procedures and requirements. A licensing authority may deny an application for a state license, or issue a conditional license, if certain conditions apply. That act also requires each licensing authority to prepare and submit to the Legislature an annual report on the authority’s activities, and to post the report on the authority’s Internet Web site. The licensing authority is required to include various information in that report, including, among others, the number of state licenses issued by that authority.

This bill would also require a licensing authority to include in its annual report the number of conditional licenses issued.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: NO  

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


SECTION 1.

 Section 22557.3 is added to the Public Utilities Code, to read:

22557.3.
 (a) Notwithstanding Section 22557, the East Kern Airport District may issue temporary negotiable notes bearing interest at a rate not exceeding the maximum rate permitted pursuant to Section 53531 of the Government Code. These notes shall be general obligations of the district payable from revenues and taxes, unless paid from other available funds of the district, in the same manner as bonds of the district. The notes shall mature not later than 20 years from the date thereof, and the total aggregate amount of notes outstanding at any one time shall not exceed 2 percent of the assessed valuation of the taxable property in the district, or if the assessed valuation is not obtained, 2 percent of the county auditor’s estimate of the assessed valuation of the taxable property of the district evidenced by the auditor’s certificate. The total aggregate amount of notes outstanding at any one time shall further not exceed ten million dollars ($10,000,000).
(b) Any note proposed to be issued pursuant to subdivision (a) with a term longer than five years shall not be issued until after a public hearing is conducted with respect to the issuance and a resolution is adopted approving the issuance. At least 15 days prior to the public hearing, the board shall cause notice of the hearing to be published pursuant to Section 6061 of the Government Code in a newspaper published in the principal county. The resolution is subject to referendum pursuant to Section 9340 of the Elections Code and shall so provide. Within 15 days after adoption of the resolution of issuance, the board shall cause the resolution to be published at least once in a newspaper of general circulation published in the principal county, or if there is none, posted in at least three public places in the district.

SECTION 1.Section 19353 of the Business and Professions Code is amended to read:
19353.

Beginning on March 1, 2023, and on or before March 1 of each year thereafter, each licensing authority shall prepare and submit to the Legislature an annual report on the authority’s activities, in compliance with Section 9795 of the Government Code, and post the report on the authority’s Internet Web site. The report shall include, but not be limited to, the following information for the previous fiscal year:

(a)The amount of funds allocated and spent by the licensing authority for medical cannabis licensing, enforcement, and administration.

(b)The number of state licenses issued, including conditional licenses, renewed, denied, suspended, and revoked, by state license category.

(c)The average time for processing state license applications, by state license category.

(d)The number of appeals from the denial of state licenses or other disciplinary actions taken by the licensing authority and the average time spent on these appeals.

(e)The number of complaints submitted by citizens or representatives of cities or counties regarding licensees, provided as both a comprehensive statewide number and by geographical region.

(f)The number and type of enforcement activities conducted by the licensing authorities and by local law enforcement agencies in conjunction with the licensing authorities or the bureau.

(g)The number, type, and amount of penalties, fines, and other disciplinary actions taken by the licensing authorities.