BILL NUMBER: AB 69	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 27, 2013
	AMENDED IN SENATE  JUNE 19, 2013

INTRODUCED BY   Assembly Member Perea

                        JANUARY 10, 2013

   An act  to amend Section 14611 of, and to add Article 13
(commencing with Section 14690) to Chapter 5 of Division 7 of, the
Food and Agricultural Code, and  to add Section 13169.5 to,
and to add and repeal Article 4 (commencing with Section 13444) of
Chapter 6 of Division 7 of, the Water Code, relating to water,
 and  making an appropriation therefor  , and
declaring the urgency thereof, to take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 69, as amended, Perea. Groundwater: drinking water: Nitrate at
Risk Fund.
   (1) Existing law establishes the State Water Resources Control
Board, or state board, and 9 California regional water quality
control boards, and authorizes the state board to adopt regulations
to carry out its powers and duties. Under existing law, the
Porter-Cologne Water Quality Control Act, the state board is required
to formulate and adopt state policy for water quality control. Under
existing law the state board is further authorized to develop and
implement a groundwater protection program consistent with federal
law.
   This bill would require the state board, in collaboration with the
regional boards, and state and local agencies that collect water
quality data or information, to develop a public information program
on matters involving groundwater quality monitoring and assessment,
as specified, and would also require the state board to develop and
maintain on its Internet Web site, in a format accessible to the
general public, an information file with specific information on
groundwater quality. 
   (2) Existing law requires a person who manufactures or distributes
fertilizing materials to obtain a license from the Secretary of Food
and Agriculture. Under existing law, a licensee whose name appears
on the label who sells or distributes bulk fertilizing materials is
required to pay specified fees for each dollar of sales, including an
amount not to exceed $0.001 per dollar of sales for all sales of
fertilizing materials, to provide funding for research and education
regarding the use and handling of fertilizing material. 

   This bill would expand the assessment to all commercial or retail
sales of fertilizing materials by any person. This bill would require
a seller of fertilizing materials to remit the assessment to the
Department of Food and Agriculture for deposit in the Fertilizer
Research and Education Program Fund that this bill would create. This
bill would continuously appropriate this fund, without regard to
fiscal years, to the department to provide funding for research and
education regarding the use and handling of fertilizing materials.
 
   (3) 
    (   2)  Existing law, the California Safe
Drinking Water Act, requires the State Department of Public Health to
administer provisions relating to the regulation of drinking water
to protect public health, including, but not limited to, conducting
research, studies, and demonstration programs relating to the
provision of a dependable, safe supply of drinking water, enforcing
the federal Safe Drinking Water Act, adopting enforcement
regulations, and conducting studies and investigations to assess the
quality of water in domestic water supplies.
   This bill would establish the Nitrate at Risk Fund, to be
administered by the department. This bill would continuously
appropriate, without regard to fiscal years, the fund to the
department for the purposes of loans, principal forgiveness loans, or
grants to certain water systems  operating in a high-nitrate
at-risk area  for specified purposes. This bill would require a
person who purchases nitrogen fertilizer materials in California to
pay a nitrogen fertilizer materials charge, until January 1, 2016, of
$0.01 per dollar of materials, and on and after January 1, 2016, the
department may increase the amount of the charge, as specified, to
an amount no greater than $0.04 per dollar of materials if 80% of the
moneys in the fund are committed. This bill would require a seller
of nitrogen fertilizer materials to remit the nitrogen fertilizer
materials charge to the department to be deposited in the fund. This
bill would prohibit the fertilizer materials charge from being
imposed when the department determines that the fund contains more
than $100,000,000 and less than $50,000,000 of the moneys in the fund
are committed. This bill would require the state board, on or before
January 1, 2022, to submit a report to the Legislature that includes
specified information relating to the fund and contaminated drinking
water. This bill would repeal these provisions on January 1, 2024.

   (3) The bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 14611 of the Food and
Agricultural Code is amended to read:
   14611.  A licensee whose name appears on the label who sells or
distributes bulk fertilizing materials, as defined in Sections 14517
and 14533, to unlicensed purchasers, shall pay to the secretary an
assessment not to exceed two mills ($0.002) per dollar of sales for
all fertilizing materials. A licensee whose name appears on the label
of packaged fertilizing materials, as defined in Sections 14533 and
14551, shall pay to the secretary an assessment not to exceed two
mills ($0.002) per dollar of sales. The secretary may, based on the
findings and recommendations of the board, reduce the assessment rate
to a lower rate that provides sufficient revenue to carry out this
chapter.  
  SEC. 2.    Article 13 (commencing with Section
14690) is added to Chapter 5 of Division 7 of the Food and
Agricultural Code, to read:

      Article 13.  Fertilizer Research and Education Program


   14690.  (a) The secretary may impose an assessment in an amount
not to exceed one mill ($0.001) per dollar of sales for all
commercial or retail sales of fertilizing materials by any person, to
provide funding for research and education regarding the use and
handling of fertilizing material, including, but not limited to,
support for the University of California Cooperative Extension, the
California resource conservation districts, other California
institutions of postsecondary education, or other qualified entities
to develop programs in the following areas:
   (1) Technical education for users of fertilizing materials in the
development and implementation of nutrient management projects that
result in more agronomically sound uses of fertilizing materials and
minimize the environmental impacts of fertilizer use, including, but
not limited to, nitrates in groundwater and emissions of greenhouse
gases resulting from fertilizer use.
   (2) Research to improve nutrient management practices resulting in
more agronomically sound uses of fertilizing materials and to
minimize the environmental impacts of fertilizer use, including, but
not limited to, nitrates in groundwater and emissions of greenhouse
gases resulting from fertilizer use.
   (3) Education to increase awareness of more agronomically sound
use of fertilizer products to reduce the environmental impacts
resulting from the overuse or inefficient use of fertilizing
materials.
   (b) Notwithstanding Section 14503, a seller of fertilizing
materials shall remit the assessment imposed pursuant to subdivision
(a) to the department for deposit in the Fertilizer Research and
Education Program Fund that is hereby established in the State
Treasury. Notwithstanding Section 13340 of the Government Code,
moneys in the Fertilizer Research and Education Program Fund are
continuously appropriated, without regard to fiscal years, to the
department for the purposes of this section. 
   SEC. 3.   SECTION 1.   Section 13169.5
is added to the Water Code, to read:
   13169.5.  (a) The state board, in collaboration with the regional
boards, and state and local agencies that collect water quality data
or information, shall develop a public information program on matters
involving groundwater quality monitoring and assessment throughout
the state by utilizing existing data, including groundwater ambient
monitoring and assessment results, along with the collection of new
information as needed.
   (b) The state board shall develop and maintain on its Internet Web
site, in a format accessible to the general public, an information
file on groundwater quality monitoring, assessment, research,
standards, regulation, enforcement, and other pertinent matters.
   SEC. 4.   SEC. 2.   Article 4
(commencing with Section 13444) is added to Chapter 6 of Division 7
of the Water Code, to read:

      Article 4.  Nitrate at Risk Fund


   13444.  The Nitrate at Risk Fund is hereby established in the
State Treasury, to be administered by the State Department of Public
Health. Notwithstanding Section 13340 of the Government Code, moneys
in the Nitrate at Risk Fund are continuously appropriated, without
regard to fiscal years, to the State Department of Public Health for
the purposes described in Section 13446.
   13445.  (a) For purposes of this section, "fertilizer materials
charge" means the charge imposed pursuant to subdivision (b).
   (b) (1) A person who purchases fertilizer materials in California,
including, but not limited to, all commercial or retail sales of
fertilizer materials for agricultural or urban uses, shall pay a
fertilizer materials charge as follows:
   (A) Until January 1, 2016, a charge of $0.01 per dollar of
materials.
   (B) On and after January 1, 2016, the State Department of Public
Health may increase the amount of the charge to an amount no greater
than $0.04 per dollar of materials if 80 percent of the moneys in the
Nitrate at Risk Fund are committed. In determining the amount of the
charge, the State Department of Public Health shall consider the
demand for the moneys in the Nitrate at Risk Fund.  The adoption
or revision of the charge pursuant to this subparagraph is exempt
from Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. In determining the
charge, the State Department of Public Health shall allow stakeholder
participation and make available to the public the information upon
which the State Department of Public Health calculates, bases, or
determines the charge. 
   (2) A seller of fertilizer materials shall remit the fertilizer
materials charge to the State Department of Public Health to be
deposited in the Nitrate at Risk Fund.
   (c) The fertilizer materials charge shall not be imposed when the
State Department of Public Health determines that the Nitrate at Risk
Fund contains more than one hundred million dollars ($100,000,000)
and less than fifty million dollars ($50,000,000) of the moneys in
the Nitrate at Risk Fund are committed.
   13446.  (a) Moneys in the Nitrate at Risk Fund shall be used for
loans, principal forgiveness loans, or grants to a water system 
operating in a high-nitrate at-risk area  that is 
either a   one of the following: 
    (1)     A  small community water
system serving a disadvantaged  community or an 
 community. 
    (2)     An  unregulated system of 2 to
15, inclusive, service connections. 
   (3) A nontransient noncommunity water system owned by a public
agency. 
   (b) Moneys in the Nitrate at Risk Fund may be used for any of the
following purposes:
   (1) Preplanning drinking water projects.
   (2) Planning drinking water projects.
   (3) Interim water solutions.
   (4) Constructing drinking water projects.
   (5) Operating and maintaining drinking water systems. The State
Department of Public Health shall ensure that moneys used for the
purposes of this paragraph are for the operation and maintenance of
drinking water systems in communities that have a substantial need
and otherwise would not be able to afford to operate or maintain
their systems.  The State Department of Public Health shall
ensure that moneys available for the operation and maintenance of a
particular drinking water system pursuant to this paragraph shall not
be permanent and shall be phased out over time. 
   (c) Moneys in the Nitrate at Risk Fund shall not be used for
loans, principal forgiveness loans, or grants to a water system that
is a small community water system for the purposes of either
paragraph (2) or (4) of subdivision (b) unless no other funding
source is available to that system for that purpose.
   13447.  (a) On or before January 1, 2022, the state board, in
consultation with any other state entity or research institution as
appropriate, shall submit to the Legislature a report that includes
all of the following information:
   (1) Communities that rely on contaminated drinking water as a
primary source of drinking water.
   (2) The principal contaminants and other constituents of concern
affecting groundwater and contamination levels in the groundwater
sources for the communities described in paragraph (1).
   (3) Potential solutions and funding sources to clean up or treat
groundwater or to provide alternative water supplies to ensure the
provision of safe drinking water to communities identified in
paragraph (1).
   (4) The effect of the use of the moneys in the Nitrate at Risk
Fund for the purposes described in Section  13445 
 13446  on nitrate contaminated groundwater used as a source
of drinking water.
   (b) A report to be submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
   13448.  If the responsibility for administering Chapter 4
(commencing with Section 116270) of Part 12 of Division 104 of the
Health and Safety Code is transferred to the state board, the state
board shall succeed to and is vested with all of the authority,
duties, powers, responsibilities, and jurisdiction of the State
Department of Public Health pursuant to this article.
   13449.  This article shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
   SEC. 3.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   To address the public health problem of nitrate contaminated
drinking water as soon as possible, it is necessary for this act to
take effect immediately.