ASSEMBLY BILL No. 709

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AMENDED IN SENATE AUGUST 31, 2017 AMENDED IN SENATE JUNE 13, 2017 AMENDED IN ASSEMBLY MAY 15, 2017 AMENDED IN ASSEMBLY MARCH 23, 2017 california legislature 2017 18 regular session ASSEMBLY BILL No. 709 Introduced by Assembly Member McCarty February 15, 2017 An act to add Section 22974.6 to the Business and Professions Code, relating to the sale of tobacco products. An act to amend Sections 102013, 102018, 102050, 102051, 102100.3, 102100.6, 102105.1, 102107, 102160, 102206, 102242, 102243, 102260, 102281, 102282, 102310, 102332, 102351, and 102430 of, to amend and renumber Section 102100.10 of, to add Section 102105.05 to, and to repeal Section 102336 of, the Public Utilities Code, relating to transportation. legislative counsel s digest AB 709, as amended, McCarty. Tobacco products: retailers. Sacramento Regional Transit District. Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law describes the authorized boundaries of the district. Existing law provides for the district to be governed by a board of directors and provides for a weighted voting procedure. Existing law provides that the district may exercise the right of eminent domain and may levy various taxes subject to voter approval.

AB 709 2 Existing law authorizes the district to provide for a retirement system for its employees. This bill would revise and recast these and other related provisions. The bill would modify the description of the authorized boundaries of the district and provide that the district is a rapid transit district, as defined. The bill would specify that certain property and facilities used by the district are transit works and facilities, and constitute public works for the purposes of the Public Contract Code. The bill would modify the definition of quorum as applied to meetings of the board. The bill would require the board, in acting on any item, to continue to use that weighted voting procedure until the board adopts a different voting procedure by ordinance or resolution, as specified, and would make conforming changes. If the board adopts a new voting procedure, the bill would require the board to post those new procedures on the district s Internet Web site. The bill would authorize the district to publish ordinances on its Internet Web site as an alternative to newspaper publication. The bill would authorize the board secretary to be a district employee appointed by the board. The bill would provide that the preexisting rights of a public utility to be present on property would govern which party bears the costs of utility relocation in a district eminent domain proceeding, and that just compensation would not be payable if the public utility is obligated to bear the cost. The bill would authorize a public agency to contract with the district to provide transit facilities and services for the public agency. The bill would provide that laws, or rules or regulations, of this state inconsistent with the laws, or rules and regulations, of the United States, shall not apply to the acquisition, construction, maintenance, or operation of transit facilities funded by the United States, to the extent of the inconsistency, if that inconsistency may result in a loss of federal funding. The bill would modify the district s powers to impose property or sales taxes to apply to all or any part of the district, and that the taxes would apply to an entity within the boundaries of the district as long as the entity remains a participating entity of the district. The bill would authorize members of the board and district employees to sit on the district s retirement system board. The bill would make other related changes. The Cigarette and Tobacco Products Licensing Act of 2003 requires the State Board of Equalization to administer a statewide program to license manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products. The act authorizes the board to adopt and enforce rules and regulations relating to the administration and

3 AB 709 enforcement of the act. The act provides various penalties for violations, including the suspension or revocation of a retailer license for violations of the act and civil penalties for multiple offenses. Except as otherwise provided, a violation of the act is a misdemeanor punishable by a fine not to exceed $5,000, by imprisonment not exceeding one year in a county jail, or by both the fine and imprisonment. This bill would prohibit a retailer from employing specific means of reducing the price of cigarettes or another tobacco product for a consumer below the listed price. The bill would impose, in addition to existing civil and criminal penalties, specific civil penalties for violations of the bill. Because a violation of the bill would be a crime, it would impose a state-mandated local program. 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 act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes no. State-mandated local program: yes no. The people of the State of California do enact as follows: line 1 SECTION 1. Section 102013 of the Public Utilities Code is line 2 amended to read: line 3 102013. Transit works or transit facilities means any or line 4 all real and personal property, equipment, rights, or interests line 5 owned, or to be acquired, or used, by the district for transit service line 6 or purposes. purposes, including transit operations, maintenance, line 7 or administration. Transit works or transit facilities are line 8 public works for the purposes of the Public Contract Code. line 9 SEC. 2. Section 102018 of the Public Utilities Code is amended line 10 to read: line 11 102018. System means all transit works and transit facilities line 12 owned or held, or to be owned or held, or used, by the district for line 13 transit purposes. line 14 SEC. 3. Section 102050 of the Public Utilities Code is amended line 15 to read: line 16 102050. The Sacramento Regional Transit District may be line 17 formed pursuant to this chapter to carry out the purposes of this

AB 709 4 line 1 part. The district is hereby designated a rapid transit district. The line 2 district shall be a public corporation for such those purposes. line 3 SEC. 4. Section 102051 of the Public Utilities Code is amended line 4 to read: line 5 102051. The district may comprise the Cities of Citrus Heights, line 6 Elk Grove, Davis, Folsom, Rancho Cordova, Roseville, line 7 Sacramento, West Sacramento, and Woodland, and the following line 8 described territory of the Counties of Sacramento and Yolo, to the line 9 extent they are the territory is not included in the above-mentioned line 10 cities: line 11 (a) The territory of the County of Sacramento which may be line 12 included is described as follows: line 13 (1) Beginning at the northeasterly corner of the Sacramento line 14 County line running southeasterly to State Highway Route 50; line 15 thence southwesterly along Route 50 to Prairie City Road; thence line 16 southeasterly along Prairie City Road to White Rock Road; thence line 17 along White Rock Road to Grant Line Road; thence along Grant line 18 Line Road to Douglas Road; thence westerly along Douglas Road line 19 to Sunrise Blvd.; thence southerly along Sunrise Blvd. to Kiefer line 20 Blvd.; thence westerly along Kiefer Blvd. to Excelsior Road; thence line 21 southerly along Excelsior Road to Jackson Road; thence line 22 northwesterly along Jackson Road to Bradshaw Road; thence line 23 southerly along Bradshaw Road to Grant Line Road; thence line 24 westerly along Grant Line Road to State Highway Route 99; thence line 25 northwesterly along Route 99 to Elk Grove Blvd.; thence westerly line 26 along Elk Grove Blvd. to Bruceville Road; thence southerly along line 27 Bruceville Road to Bilby Road; thence westerly along Bilby Road line 28 to Franklin Blvd.; thence northeasterly along Franklin Blvd. to Elk line 29 Grove Blvd.; thence westerly along Elk Grove Blvd. to the line 30 intersection of State Highway Route 5; thence northerly along line 31 Route 5 to the Sacramento City Limits; thence along the line 32 Sacramento City Limits to the Sacramento River; thence along the line 33 Sacramento River upstream to the intersection of the Sacramento line 34 River and prolongation of San Juan Road; thence easterly along line 35 the prolongation of San Juan Road to the Sacramento City Limits; line 36 thence along the Sacramento City Limits to Elk Horn Blvd.; thence line 37 easterly along Elk Horn Blvd. to the Union Pacific Railroad; thence line 38 along the Union Pacific Railroad to Elverta Road; thence easterly line 39 along Elverta Road to 16th Street; thence northerly along 16th line 40 Street to the Sacramento County line; thence easterly along the

5 AB 709 line 1 Sacramento County line to the point of beginning, and excluding line 2 the Cities of Sacramento and Folsom. line 3 (2) Beginning at the southwesterly corner of the intersection of line 4 Route 5 and Power Line Road; thence northerly along Power Line line 5 Road to Elverta Road; thence easterly along Elverta Road to Lone line 6 Tree Road; thence southerly along Lone Tree Road to Route 5; line 7 thence westerly along Route 5 to the point of beginning. line 8 (3) All of that property known as the Sacramento County line 9 Metropolitan Airport in Natomas Elkhorn Subdivision and Sec. line 10 36, T. 10 N., R. 3 E., M.D.B. & M. and filed for record the 29th line 11 day of January, 1968, at 4:45 P.M., in Book 26 of Surveys, at Page line 12 12, in the office of the Sacramento County Recorder. line 13 (4) Notwithstanding paragraphs (1), (2), and (3) of this line 14 subdivision, the unincorporated territory of the County of line 15 Sacramento included that may be included in the district shall line 16 include is the same area as the urban service area proposed to be line 17 adopted by of the County of Sacramento, as adopted and as line 18 hereafter amended. line 19 (b) The unincorporated territory of the County of Yolo which line 20 that may be included is described as follows: line 21 (1) Beginning at the northeast corner of Sec. 36, T. 9 N., R. 3 line 22 E., M.D.B. & M.; thence north 1 2 mile along the west line of Sec. line 23 30, T. 9 N., R. 4 E., to the west 1 4 corner of Sec. 30; thence east 1 2 line 24 mile to the center of Sec. 30; thence north 1 8 mile, more or less, line 25 to the north line of Swamp Land Survey No. 970, the point being line 26 on the centerline of Tule Lake Road; thence northeasterly along line 27 the north line of Swamp Land Survey No. 970 to the centerline of line 28 the Sacramento River; thence easterly and southerly down and line 29 along the Sacramento River to the south line of Swamp Land line 30 Survey No. 815; thence northwesterly along the south line of line 31 Swamp Land Survey No. 815 to its southwest corner; thence line 32 northeasterly along the west line of Swamp Land Survey No. 815 line 33 to a point where it is intersected by the quarter section line running line 34 east and west through Sec. 30, T. 8 N., R. 4 E.; thence west 3 4 line 35 mile, more or less, to the east 1 4 corner of Sec. 25, T. 8 N., R. 3 line 36 E.; thence north 5 1 2 miles, more or less, to the point of beginning. line 37 (2) Beginning at the intersection of State Highway Route 113 line 38 and the Yolo County line southern boundary; thence easterly along line 39 the Yolo County line southern boundary to the Davis City Limits; line 40 thence meandering along the Davis City Limits to Russell

AB 709 6 line 1 Boulevard; thence westerly along Russell Boulevard to Route 113; line 2 thence southerly along Route 113 to the point of beginning. line 3 For purposes of this section, any reference to an avenue, line 4 boulevard, highway, railroad, road, or street includes the line 5 right-of-way thereof. line 6 SEC. 5. Section 102100.3 of the Public Utilities Code is line 7 amended to read: line 8 102100.3. The number of members of the board of directors line 9 shall be increased as follows: line 10 (a) Each member entity shall be entitled to make one line 11 appointment to the board. line 12 (b) A city or county that is not annexed to the district may line 13 become a participating entity that is entitled to make at least one line 14 appointment to the board if the participating entity enters into an line 15 agreement with the district that provides for all of the following: line 16 (1) The line 17 (1) The participating entity agrees to pay its proportionate share line 18 of the district s cost to provide rail or other districtwide transit line 19 services. line 20 (2) The line 21 (2) The district agrees to maintain a specified level of rail or line 22 other districtwide transit services. line 23 (3) The line 24 (3) The district is not obligated to provide transit services to any line 25 particular location or along any particular route. line 26 (c) A voting entity shall be entitled to make an additional line 27 appointment to the board under the circumstances set forth in line 28 paragraph (6) of subdivision (d) of Section 102105.1. 102105.1, line 29 if applicable. line 30 SEC. 6. Section 102100.6 of the Public Utilities Code is line 31 amended to read: line 32 102100.6. An action by the board shall not be void or voidable line 33 under either of the following circumstances: line 34 (a) If it is determined, subsequent to an action in which a line 35 member representing a participating entity casts a vote, that the line 36 agreement for that participating entity did not comply with line 37 subdivision (b) of Section 102100.3. line 38 (b) Because of any mathematical or clerical error in the line 39 information used to calculate, or because of the calculation of, the

7 AB 709 line 1 apportionment referred to in paragraph (5), (8), or (9) of line 2 subdivision (d) of Section 102105.1. 102105.1, if applicable. line 3 SEC. 7. Section 102100.10 of the Public Utilities Code is line 4 amended and renumbered to read: line 5 102100.10. line 6 102100.9. Each voting entity appointing members to the board line 7 in accordance with Section 102100.2 or 102100.3 may also select, line 8 in the same manner as the primary member or members, one or line 9 more alternates, as the case may be, to serve on the board when line 10 the primary member or members are not available. Each alternate line 11 shall be appointed to serve for a specific member. The alternate line 12 shall be subject to the same restrictions and shall have the same line 13 powers, when serving on the board, as the primary member, line 14 including assumption of the seniority of the primary member for line 15 purposes of paragraph (7) of subdivision (d) of Section 102105.1. line 16 102105.1, if applicable. The legislative body of any voting entity line 17 appointing an alternate shall provide written notification to the line 18 secretary of the board of each appointment of an alternate in order line 19 for the appointment to be effective. line 20 SEC. 8. Section 102105.05 is added to the Public Utilities line 21 Code, to read: line 22 102105.05. (a) The board shall have the authority to determine line 23 its own voting procedure by ordinance or resolution. line 24 (b) The board, in acting on any item, shall continue to use the line 25 weighted voting procedure described in Section 102105.1 until line 26 the board, consistent with the requirements of Section 102105.1, line 27 adopts a different voting procedure. line 28 (c) If the board adopts a different voting procedure pursuant line 29 to this section, the board shall post those new voting procedures line 30 on the district s Internet Web site. line 31 SEC. 9. Section 102105.1 of the Public Utilities Code is line 32 amended to read: line 33 102105.1. In acting on any item, item using a weighted voting line 34 procedure, all the following weighted voting procedure shall be line 35 applied: shall apply: line 36 (a) There shall be a total of 100 votes. line 37 (b) The presence of members eligible to cast a majority of the line 38 100 votes shall constitute a quorum for the transaction of business. line 39 business at a noticed meeting. In all other cases, a majority of the line 40 members of the board shall constitute a quorum.

AB 709 8 line 1 (c) Except as otherwise provided in this section, and line 2 notwithstanding any other provision of law, all official acts of the line 3 board shall require the affirmative vote of members casting a line 4 majority of the 100 votes. Any statute, including this part, that line 5 requires a vote of the board shall be interpreted to require a tally line 6 of the votes, rather than a tally of the members of the board. A line 7 statute requiring the affirmative vote of the majority or a greater line 8 number of members of the board, including, but not limited to, line 9 Section 1245.240 of the Code of Civil Procedure, shall be line 10 interpreted as requiring a tally of the votes cast by members, rather line 11 than a tally of members. line 12 (d) Each board member shall have the number of votes line 13 determined by the following formula; however, each voting entity line 14 represented on the board shall have at least one vote, and providing line 15 that there shall be no fractional votes: line 16 (1) Each member entity is entitled to five votes as a membership line 17 incentive; however, the total number of incentive votes shall not line 18 exceed 30. If the number of member entities exceeds six, the 30 line 19 incentive votes shall be divided equally among the member entities. line 20 (2) The remaining votes shall be divided among all voting line 21 entities in proportion to each entity s financial contribution to the line 22 district. The calculation of each voting entity s financial line 23 contribution shall include all of the following: line 24 (A) Funds allocated to the district pursuant to the line 25 Mills-Alquist-Deddeh Act, also known as the Transportation line 26 Development Act (Chapter 4 (commencing with Section 99200) line 27 of Part 11 of Division 10), or any successor thereto, as computed line 28 by the applicable transportation planning agency for the voting line 29 entity. line 30 (B) Funds provided to the district by the voting entity pursuant line 31 to an agreement of the type described in subdivision (b) of Section line 32 102100.3. line 33 (C) Other local funds made available to the district by the voting line 34 entity for the operation of public transit service. line 35 (D) The federal formula grant funds attributable to the voting line 36 entity shall be determined by multiplying the amount described in line 37 paragraph (8) of subdivision (b) of Section 102205 by the voting line 38 entity s proportionate share of the total population of all voting line 39 entities, which shall be determined by using the population statistics line 40 described in paragraph (10) of subdivision (b) of Section 102205.

9 AB 709 line 1 (E) Any adjustment expressly provided for in an agreement line 2 entered into between the district and any voting entity whereby line 3 the district receives or disburses any of the funds described in line 4 subparagraphs (A) to (D), inclusive, including, but not limited to, line 5 fund exchange or fund swap agreements. line 6 (3) The total number of votes for each voting entity shall be the line 7 sum of the votes allocated in paragraphs (1) and (2). line 8 (4) If the division set forth in paragraphs (1) to (3), inclusive, line 9 results in fractional votes, the number of votes allocated shall be line 10 rounded in the following manner: line 11 (A) Each fractional vote that is 0.6 or greater shall be rounded line 12 up to the nearest whole number, and each fractional vote that is line 13 less than 0.6 shall be rounded down to the nearest whole number. line 14 (B) If the sum total of the votes so rounded is greater than 100, line 15 the excess vote or votes shall be taken one each from the voting line 16 entity or entities with the greatest number of total votes, in line 17 descending order of the number of votes, until the sum total is 100. line 18 If two or more voting entities have the same number of votes, the line 19 vote reduction among those entities shall be done by lot. line 20 (C) If the sum total of the votes so rounded is less than 100, one line 21 vote shall be added to the total of the voting entity or entities with line 22 the greatest number of total votes, in descending order of the line 23 number of votes, until the sum total is 100. If two or more voting line 24 entities have the same number of votes, the extra votes shall be line 25 allocated by lot among those entities. line 26 (5) The determination of financial contribution and the line 27 apportionment of votes shall be approved by the board at the board line 28 meeting at which the budget is adopted. The new voting line 29 apportionment shall be effective on July 1 of each year or as soon line 30 thereafter as the budget is adopted. line 31 (6) At the time the apportionment is approved, the following line 32 calculation shall be done for each voting entity: the total number line 33 of votes allocated to the voting entity shall be divided by the total line 34 number of appointments the voting entity is entitled to make under line 35 Sections 102100.2 and 102100.3, regardless of whether those line 36 appointments have been made. If the result is greater than 15 votes line 37 per appointment, the voting entity shall be entitled to appoint an line 38 additional member to the board, effective July 1. Notwithstanding line 39 Section 102100.5, the legislative body of the voting entity making line 40 its appointment under this provision shall give written notification

AB 709 10 line 1 to the secretary of the board within 30 days of approval of the line 2 allocation. A member so appointed shall be subject to the same line 3 restrictions and shall have the same powers, when serving on the line 4 board, as any other member. line 5 (7) For any voting entity that has appointed more than one line 6 member to the board, the total votes allocated to that voting entity line 7 shall be divided equally among the board members or alternates line 8 representing that entity who are present and voting. Where an equal line 9 division would result in fractional votes, the votes shall be divided line 10 to the nearest whole number among all members representing the line 11 voting entity who are present and voting, with the remaining votes line 12 being allocated, one vote each, to the members representing the line 13 voting entity in order of seniority, as measured by years of line 14 consecutive service on the board. If two or more members have line 15 served for the same length of time, the extra vote or votes shall be line 16 allocated between those members by lot. line 17 (8) If a city or county becomes a voting entity or ceases to be line 18 a voting entity after the annual allocation called for in this line 19 subdivision has taken place, the board shall approve a new line 20 allocation, applying the financial contribution data used for the line 21 most recent allocation and considering what the new voting entity line 22 would have contributed, had it been part of the district when the line 23 preceding allocation took place. If necessary, the financial line 24 contribution of a newly incorporated entity may be estimated using line 25 population figures from the applicable local agency formation line 26 commission. line 27 (9) If, during the course of the fiscal year, the financial data line 28 used to calculate the financial contribution of any voting entity line 29 differs by more than 10 percent from the amount that will actually line 30 be provided during the fiscal year by that entity, the board may line 31 call for a new allocation to be conducted and any allocation so line 32 called for shall be approved by the board. The allocation shall line 33 proceed in the manner described in paragraphs (1) to (4), inclusive, line 34 but the calculation in paragraph (2) shall be done with reference line 35 to the financial contribution actually provided to the district during line 36 the fiscal year (except as otherwise provided in paragraph (8)), to line 37 the extent that contribution is known. line 38 SEC. 10. Section 102107 of the Public Utilities Code is line 39 amended to read:

11 AB 709 line 1 102107. (a) No ordinance shall be passed by the board on the line 2 day of its introduction, nor within three days thereafter, nor at any line 3 time other than at a regular or adjourned regular meeting. The line 4 enacting clause of all ordinances shall be as follows: line 5 The board of directors of the Sacramento Regional Transit line 6 District do ordain as follows: line 7 (b) All ordinances shall be signed by the chairman of the board line 8 or the chairman pro tempore and attested by the secretary. Before line 9 the expiration of 15 days after the passage of an ordinance, it shall line 10 be published once in a newspaper of general circulation in the line 11 district. district or on the district s Internet Web site. An order line 12 entered in the minutes of the board that the ordinance has been line 13 duly published is prima facie proof of such publication. line 14 SEC. 11. Section 102160 of the Public Utilities Code is line 15 amended to read: line 16 102160. The officers of the district shall consist of the members line 17 of the board, and the chairman, chairman chair, chair pro tem, and line 18 secretary, who shall be selected from the members of the board, line 19 except that the secretary may alternatively be an employee of the line 20 district appointed by the board. The board may also hire and line 21 appoint a general manager, a legal counsel, a controller, a treasurer, line 22 and such other officers, assistants, and deputies as the board may line 23 deem necessary. line 24 SEC. 12. Section 102206 of the Public Utilities Code is line 25 amended to read: line 26 102206. The district shall also submit to the legislative body line 27 of each voting entity with its tentative or proposed budget a line 28 statement of its proposed operations and level of service for the line 29 period covered by the budget, calling attention to any substantial line 30 or significant changes or proposed changes in operations and level line 31 of service within each voting entity and a draft of the vote line 32 allocation called for by Section 102105.1. 102105.1 or the voting line 33 procedure adopted pursuant to Section 102105.05, whichever line 34 applies. A legislative body may include with its comments to the line 35 district on the budget, budget comments concerning the proposed line 36 operations, level of service, and vote allocation, allocation or line 37 procedure, as applicable, and the board shall consider those line 38 comments prior to adopting the budget. line 39 SEC. 13. Section 102242 of the Public Utilities Code is line 40 amended to read:

AB 709 12 line 1 102242. The district may exercise the right of eminent domain line 2 to take any property necessary or convenient to the exercise of the line 3 powers granted in this part. The district, in exercising such power, line 4 shall in addition to the damages for the taking, injury, or destruction line 5 the cost, exclusive of betterment and with credit for salvage value, line 6 The determination of which party bears the cost of removal, line 7 reconstruction, or relocation of any structure, railways, mains, line 8 pipes, conduits, wires, cables, or poles of any public utility which line 9 is required to be moved to a new location. shall be governed by line 10 the preexisting rights of the public utility to be present on the line 11 property. line 12 SEC. 14. Section 102243 of the Public Utilities Code is line 13 amended to read: line 14 102243. The Public Utilities Commission of the state shall line 15 have and exercise power and jurisdiction to fix just compensation line 16 to be paid for the taking of any property of a public utility in line 17 eminent domain proceedings brought by the district. Just line 18 compensation shall not be payable if the public utility is obligated, line 19 under the terms of its preexisting rights to property, to relocate or line 20 remove its facilities at its own expense. No taking or acquisition line 21 by the district which that would involve the abandonment, removal, line 22 relocation, or use of the property of a railroad corporation, as line 23 defined in Section 230, shall be permitted, unless the Public line 24 Utilities Commission, after a hearing, shall find and determine line 25 finds and determines that the public interest and necessity require line 26 the abandonment, removal, relocation, or use of such that property line 27 and that such the taking or acquisition will not unreasonably impair line 28 the ability of the railroad corporation involved to provide safe, line 29 adequate, economical, and efficient service. The district may line 30 commence and maintain such eminent domain proceedings relative line 31 to a public utility in the Public Utilities Commission or the superior line 32 court at its option. line 33 SEC. 15. Section 102260 of the Public Utilities Code is line 34 amended to read: line 35 102260. The district shall adopt and maintain a general transit line 36 plan for the district. The district may designate one of the transit line 37 plans it is otherwise required to prepare as the general transit line 38 plan. line 39 SEC. 16. Section 102281 of the Public Utilities Code is line 40 amended to read:

13 AB 709 line 1 102281. (a) The district may engage in the business of line 2 providing provide charter bus service, sightseeing service, special line 3 school service, and other service, including any other service as line 4 may be provided by its predecessor, the Sacramento Transit line 5 Authority. service to the extent permitted under federal law. line 6 (b) No bus equipment which is designed solely for charter line 7 service shall be purchased. No intercity model bus shall be operated line 8 in charter service; however, nothing in this section shall limit the line 9 features and equipment on, or the use of, transit and suburban line 10 model buses. line 11 (c) The board shall hold a public hearing prior to adopting a line 12 charter rate schedule or any amendment thereof. Notice of the line 13 hearing shall be mailed at least 30 days in advance to each line 14 charter-party carrier maintaining an office or equipment point line 15 within the district, and to each charter-party carrier or line 16 representative thereof who has requested, in writing, to be notified line 17 of such hearings. A notice shall include the proposed charter rate line 18 schedule. At the close of the public hearing, the board may adopt line 19 charter rate schedules which shall not be less than the lowest of line 20 the three largest private charter-party carriers operating similar line 21 service in the district. For any charter service between points within line 22 the district, the district may establish a lower minimum charge. line 23 The designation three largest private charter-party carriers refers line 24 to the three carriers with the highest gross revenue generated from line 25 charter service originating within the district. line 26 (d) A charter trip shall have its origin within the district, and line 27 the return trip shall have its destination within the district, unless line 28 the district is requested by a private charter-party carrier to provide line 29 a trip not having origin and return destination within the district. line 30 SEC. 17. Section 102282 of the Public Utilities Code is line 31 amended to read: line 32 102282. The board may contract with any a public agency or line 33 person to provide transit facilities and services for the district. A line 34 public agency may contract with the district to provide transit line 35 facilities and services for the public agency. line 36 SEC. 18. Section 102310 of the Public Utilities Code is line 37 amended to read: line 38 102310. The district may accept, without limitation by any line 39 other provisions of this part requiring approval of indebtedness, line 40 contributions, grants, or loans from any public agency or the United

AB 709 14 line 1 States or any department, instrumentality, or agency thereof, for line 2 the purpose of financing the acquisition, construction, maintenance, line 3 or operation of transit facilities, and may enter into contracts and line 4 cooperate with, and accept cooperation from, any public agency line 5 or the United States, or agency thereof, in the acquisition, line 6 construction, maintenance, or operation, and in financing the line 7 acquisition, construction, maintenance or operation of any such line 8 transit facilities in accordance with any legislation which Congress line 9 or the Legislature of the State of California may have heretofore line 10 adopted or may hereafter adopt, under which aid, assistance, and line 11 cooperation may be furnished by the United States or any public line 12 agency in the acquisition, construction, maintenance and operation line 13 of any such transit facilities. The district may do any and all things line 14 necessary in order to avail itself of such aid, assistance, and line 15 cooperation under any federal or state legislation now or hereafter line 16 enacted. Any evidence of indebtedness issued under this section line 17 shall constitute a negotiable instrument. Laws, or rules or line 18 regulations, of this state inconsistent with the laws, or rules and line 19 regulations, of the United States, shall not apply to the acquisition, line 20 construction, maintenance, or operation of transit facilities funded line 21 by the United States, to the extent of the inconsistency, if that line 22 inconsistency may result in a loss of federal funding. line 23 SEC. 19. Section 102332 of the Public Utilities Code is line 24 amended to read: line 25 102332. The district shall not levy or collect a property tax line 26 within any city or within all or any part of the unincorporated area line 27 of any county until: line 28 (a) The legislative body of the city or county adopts a resolution line 29 declaring there is need for the district to operate and levy a tax line 30 within the city or the unincorporated area, or part thereof, of the line 31 county. line 32 (b) Two-thirds until two-thirds of the voters of the city or the line 33 unincorporated area, district, or part thereof, following the adoption line 34 of the resolution under subdivision (a), voting on the question at line 35 an election called for that purpose, approves the operation of the line 36 district, and approve the levy of a property tax by the district, line 37 district. The property tax shall be effective within the city or within line 38 the unincorporated area, or part thereof, of the county. a line 39 jurisdiction as long as the jurisdiction remains a participating line 40 entity within the district.

15 AB 709 line 1 SEC. 20. Section 102336 of the Public Utilities Code is line 2 repealed. line 3 102336. In addition to the general tax levy as set forth in line 4 Section 102331, if from any cause the revenues of the district are, line 5 or are expected to be, inadequate in any year to pay the principal line 6 of, interest on, or sinking fund payments for bonds of the district line 7 as they become due, or to establish or maintain any reserve fund line 8 therefor, the board shall levy for district purposes and collect upon line 9 all property in the district taxable for district purposes as provided line 10 in this article, a tax sufficient, together with revenues already line 11 collected and available therefor, to pay the interest on the bonds line 12 that will become due and such part of the principal thereof, line 13 including any sinking fund installments required by any of the line 14 district s agreements with its bondholders, that will become due line 15 before the proceeds of a tax levied at the next general tax levy will line 16 be available for such purposes, and sufficient to provide or to line 17 restore such reserve fund to the amount required by any of the line 18 district s agreements with its bondholders. line 19 SEC. 21. Section 102351 of the Public Utilities Code is line 20 amended to read: line 21 102351. Notwithstanding Sections 7261 and 7262 of the line 22 Revenue and Taxation Code, the The retail transactions and use line 23 tax ordinance shall provide for rates of one-quarter or one-half a line 24 rate of one-eighth of one percent. The ordinance shall apply only line 25 within that portion of the district that consists of the City of line 26 Sacramento and the unincorporated territory of the County of line 27 Sacramento which is activated as part of the district as of the date line 28 of any election relating to the tax authorized by this article. 1 line 29 percent or a multiple thereof. The ordinance shall provide for the line 30 tax to be imposed within the boundaries of the district, as defined line 31 in Section 102052.5, or any portion thereof. The ordinance shall line 32 be subject to voter approval by the electors in those designated line 33 boundaries consistent with Section 102350. The transactions and line 34 use tax shall be effective within a jurisdiction as long as the line 35 jurisdiction remains a participating entity within the district. line 36 SEC. 22. Section 102430 of the Public Utilities Code is line 37 amended to read: line 38 102430. The district may provide for a retirement system; line 39 provided, that the adoption, terms, and conditions of any retirement line 40 system covering employees of the district represented by a labor

AB 709 16 line 1 organization in accordance with this section shall be pursuant to line 2 a collective bargaining agreement between such labor organization line 3 and the district. The district may establish trust accounts for the line 4 purposes of this section. If the district establishes a retirement line 5 board for the retirement system, board members and employees line 6 of the district may serve on the retirement board. line 7 SECTION 1. Section 22974.6 is added to the Business and line 8 Professions Code, to read: line 9 22974.6. (a) A retailer shall not do any of the following: line 10 (1) Honor or accept a coupon or other price reduction instrument line 11 in any transaction related to the sale of cigarettes or another tobacco line 12 product to a consumer, including, but not limited to, online sales. line 13 As used in this paragraph, price reduction instrument means any line 14 coupon, voucher, rebate, card, paper, note, form, statement, ticket, line 15 image, or other issue, whether in paper, digital, or any other form, line 16 used for commercial purposes to receive an article, product, service, line 17 or accommodation without charge or at a discounted price. line 18 (2) Sell or offer for sale cigarettes or another tobacco product line 19 to a consumer through any multipackage discount or otherwise line 20 provide to a consumer any cigarettes or another tobacco product line 21 for less than the listed price in exchange for the purchase of line 22 cigarettes or any other tobacco product by the consumer. line 23 (3) Sell, offer for sale, or otherwise provide any product other line 24 than cigarettes or another tobacco product to a consumer for less line 25 than the listed price in exchange for the purchase of cigarettes or line 26 another tobacco product by the consumer. line 27 (4) Sell, offer for sale, or otherwise provide cigarettes or another line 28 tobacco product to a consumer for less than the listed price. line 29 (b) (1) In addition to any other civil or criminal penalty provided line 30 by law, a retailer who violates this section shall be liable for a line 31 penalty as follows: line 32 (A) Up to one thousand dollars ($1,000) for a first violation line 33 within a five-year period. line 34 (B) Up to two thousand dollars ($2,000) for a second violation line 35 within a five-year period. line 36 (C) Up to five thousand dollars ($5,000) for a third or subsequent line 37 violation within a five-year period. line 38 (2) A person shall not be liable under this section for more than line 39 one violation of subparagraph (B) or (C) of paragraph (1) during line 40 a single day.

17 AB 709 line 1 SEC. 2. No reimbursement is required by this act pursuant to line 2 Section 6 of Article XIIIB of the California Constitution because line 3 the only costs that may be incurred by a local agency or school line 4 district will be incurred because this act creates a new crime or line 5 infraction, eliminates a crime or infraction, or changes the penalty line 6 for a crime or infraction, within the meaning of Section 17556 of line 7 the Government Code, or changes the definition of a crime within line 8 the meaning of Section 6 of Article XIII B of the California line 9 Constitution. O