BILL NUMBER: AB 2490 CHAPTERED
BILL TEXT
CHAPTER 342
FILED WITH SECRETARY OF STATE SEPTEMBER 15, 2014
APPROVED BY GOVERNOR SEPTEMBER 15, 2014
PASSED THE SENATE AUGUST 18, 2014
PASSED THE ASSEMBLY AUGUST 21, 2014
AMENDED IN SENATE AUGUST 13, 2014
AMENDED IN SENATE JUNE 11, 2014
AMENDED IN ASSEMBLY APRIL 24, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Eggman
FEBRUARY 21, 2014
An act to amend Sections 3954, 3960, 3965, 3965.1, 4051.2, and
4057 of, to add Section 4061 to, to repeal Section 4053 of, and to
repeal and add Section 4051 of, the Food and Agricultural Code, to
amend and add Section 13332.09 of the Government Code, to repeal
Sections 10320 and 10321 of the Public Contract Code, and to amend
Section 42926 of the Public Resources Code, relating to district
agricultural associations.
LEGISLATIVE COUNSEL'S DIGEST
AB 2490, Eggman. District agricultural associations.
(1) Existing law divides the state into agricultural districts,
and provides for the management of these districts by district
agricultural associations. Existing law provides for a board of
directors for each district agricultural association, and provides
for the appointment of each director by the Governor. Existing law
sets forth the duties and responsibilities of the board of directors
and the district agricultural associations, and requires a district
agricultural association to take certain actions only with the
approval of the Department of Food and Agriculture or the Department
of General Services, or both.
This bill would authorize the Governor to remove any director of a
district agricultural association for cause prior to the expiration
of the director's term. The bill would revise the oversight
responsibilities of the Department of Food and Agriculture and the
Department of General Services in connection with district
agricultural associations by deleting the requirement that a district
agricultural association obtain approval of the Department of Food
and Agriculture or the Department of General Services prior to
exercising certain powers, including the power to sue, entering into
a settlement agreement for less than $100,000, or contracting or
exercising certain powers over its own real or personal property. The
bill would require a district agricultural association to comply
with specified contracting procedures, including, among others,
soliciting bids in writing if the cost of a project exceeds $25,000.
The bill would authorize the board of directors of a district
agricultural association, with the approval of the Department of
General Services, to purchase, acquire, hold, sell, exchange, or
convey any interest in real property. The bill would require a
district agricultural association to adopt a fiscal review policy
that would provide for annual audits, as specified. The bill would
also specify that a district agricultural association shall not be
required to prepare or submit any written report to the Governor, the
Legislature, or a state agency, except as specified.
(2) Existing law requires the Department of General Services to
exercise oversight of the acquisition and replacement of motor
vehicles and other mobile equipment by a state agency. Existing law
defines "state agency" for purposes of those provisions. Existing law
requires the Trustees of the California State University to purchase
vehicles using statewide commodity contracts, to the greatest extent
feasible, and to make an interim report to the Governor and the
Legislature on January 1, 2014, and a final report on January 1,
2015, containing certain information relative to motor vehicle
procurement by the California State University. Existing law repeals
these provisions as of July 1, 2015.
This bill would exclude district agricultural associations from
the definition of "state agency" for purposes of those provisions and
would continue the operation of these provisions beyond July 1,
2015, except for the requirement on the Trustees of the California
State University.
(3) Existing law requires the Department of General Services to
annually prepare a delegation program for district agricultural
associations, to be administered by the Department of Food and
Agriculture and the Department of General Services. Existing law also
requires the Department of Food and Agriculture, for district
agricultural associations and other fairs, to develop criteria to be
applied for purchases made locally at a price equal to or lower than
the price available through the state purchasing program.
This bill would repeal those provisions.
(4) Existing law requires each state agency to submit an annual
report to the Department of Resources Recycling and Recovery
summarizing its progress in reducing solid waste that is due on or
before May 1 each year.
This bill would exclude district agricultural associations from
the definition of "state agency" for purposes of those provisions.
(5) This bill would make conforming and nonsubstantive changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3954 of the Food and Agricultural Code is
amended to read:
3954. Each association by its name has perpetual succession. It
may have a seal. An association may sue and be sued, and may do any
and all things necessary to carry out the powers and the objects and
purposes for which the association is formed.
SEC. 2. Section 3960 of the Food and Agricultural Code is amended
to read:
3960. The term of office of each director, except that of a
member of the first board, is four years from the beginning of the
term for which he or she is appointed. Any vacancy shall be filled
for the unexpired term. However, any director may be removed for
cause by the Governor prior to the expiration of the director's term.
SEC. 3. Section 3965 of the Food and Agricultural Code is amended
to read:
3965. The board may, with the approval of the department:
(a) Fix the term of office, the amount of bond and salary, and
prescribe the duties of the secretary and of the treasurer.
(b) Manage the affairs of the association.
(c) Make all necessary bylaws, rules, and regulations for the
government of the association.
(d) Delegate, as it may deem advisable, to its officers or
employees any of the powers that are vested in the board under
subdivision (b). Any delegation of power may be revoked at any time.
SEC. 4. Section 3965.1 of the Food and Agricultural Code is
amended to read:
3965.1. (a) Notwithstanding Section 3965 or 4051, the board,
without prior approval from the department, may arrange for and
conduct, or cause to be conducted, or by contract permit to be
conducted, any activity by any individual, institution, corporation,
or association upon its property at a time as it may be deemed
advisable, except for the following:
(1) Revenue-generating contracts involving hazardous activities,
as determined by the department, unless adequate insurance coverage
is provided, as determined by the department in consultation with the
Department of General Services.
(2) The activities specified in Section 4051.2 and Section 19130
of the Government Code.
(b) This section shall not be construed and is not intended to
extend or limit the authority specified in Section 19130 of the
Government Code.
SEC. 5. Section 4051 of the Food and Agricultural Code is
repealed.
SEC. 6. Section 4051 is added to the Food and Agricultural Code,
to read:
4051. (a) An association may do any of the following:
(1) Contract, in accordance with all of the following:
(A) The written policies and procedures for contracting that are
developed and maintained by the board of directors of the association
in accordance with this section.
(B) All applicable state laws governing contracts, except as
follows:
(i) Any grant or contract entered into by an association for goods
is not subject to Chapter 2 (commencing with Section 10290) of Part
2 of Division 2 of the Public Contract Code.
(ii) Any grant or contract entered into by an association is not
subject to Chapter 3 (commencing with Section 12100) of Part 2 of
Division 2 of the Public Contract Code.
(C) If the estimated total cost of any construction project or
similar work carried out under this section exceeds twenty-five
thousand dollars ($25,000), the association shall solicit bids in
writing and shall award the work to the lowest responsible bidder or
reject all bids. The association is subject to all applicable
provisions of the Public Contract Code.
(D) An association may elect to become subject to the provisions
of the Uniform Public Construction Cost Accounting Act (Chapter 2
(commencing with Section 22000) of Part 3 of Division 2 of the Public
Contract Code) and the Small Business Procurement and Contract Act
(Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division
3 of Title 2 of the Government Code), but exempt from the reporting
requirements noted in subdivision (f) of Section 14838.1 of the
Government Code.
(2) Accept funds or gifts of value from the United States or any
person to aid in carrying out the purposes of this part.
(3) Conduct or contract for programs, and contract for the
purchase or lease of goods that are necessary to effectuate the
purposes of this chapter, either independently or in cooperation with
any individual, public or private organization, or federal, state,
or local governmental agency.
(4) Establish and maintain a bank checking account or other
financial institution account, approved by the Director of Finance in
accordance with Sections 16506 and 16605 of the Government Code, for
depositing funds received by the district agricultural association.
All funds maintained in an account authorized by this paragraph shall
be used in accordance with Section 4001.
(5) Approve the annual budget of the association and establish a
program for paying vendors who contract with the district
agricultural association.
(6) Contract with any county or county fair association for
holding a fair jointly with the county or county fair association.
The joint fair is a district fair of the association.
(7) Make or adopt all necessary orders, rules, or regulations for
governing the activities of the association. Notwithstanding
paragraph (14), any orders, rules, or regulations adopted by the
board are exempt from Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code. For
informational purposes only, however, any order, rule, or regulation
adopted by the board may be transmitted to the Office of
Administrative Law for filing with the Secretary of State pursuant to
Section 11343 of the Government Code.
(8) Operate a payroll system for paying employees, and a system
for accounting for vacation and sick leave credits of employees.
(9) Delegate to the officers and employees of the association the
exercise of powers vested in the board, as the board may deem
desirable, for the orderly management and operation of the
association.
(10) With the approval of the Department of General Services,
purchase, acquire, hold, sell, or exchange, or convey any interest in
real property. Any acquisition of land or other real property shall
be subject to the Property Acquisition Law (Part 11 (commencing with
Section 15850) of Division 3 of Title 2 of the Government Code).
(11) With the approval of the Department of General Services, make
permanent improvements upon publicly owned real property adjacent
to, or near the vicinity of, the real property of the district
agricultural association when the improvements materially benefit the
property of the association pursuant to Section 11011 of the
Government Code.
(12) With the approval of the Department of General Services,
lease for the use of its real property, or any portion of that
property, to any person or public body for whatever purpose as may be
approved by the board.
(13) Use or manage any of its property jointly or in connection
with any lessee or sublessee, for any purpose approved by the board.
(14) With the approval of the Department of General Services,
pledge any revenues, moneys, accounts, accounts receivable, contract
rights, and other rights to payment of whatever kind, pursuant to
terms and conditions approved by the board. The revenues, moneys,
accounts, accounts receivable, contract rights, and other rights to
payment of whatever kind pledged by the association or its assignees
constitute a lien or security interest that immediately attaches to
the property pledged, and is effective, binding, and enforceable
against the association, its successors, purchasers of the property
pledged, creditors, and all others asserting rights therein, to the
extent set forth, and in accordance with, the terms and conditions of
the pledge, irrespective of whether those persons have notice of the
pledge and without the need for physical delivery, recordation,
filing, or further action.
(15) With the approval of the Secretary of Food and Agriculture,
enter into a joint powers agreement pursuant to the Joint Exercise of
Powers Act (Chapter 5 (commencing with Section 6500) of Division 7
of Title 1 of the Government Code).
(b) In developing the written policies and procedures for
contracting, the board shall incorporate the following to apply to
contracts or procurement by the association:
(1) To ensure the fullest competition, the board shall adopt and
publish competitive bidding procedures for the award of a procurement
or contract involving an expenditure of more than one hundred
thousand dollars ($100,000). The competitive bidding procedures shall
include, but not be limited to, requirements for submission of bids
and accompanying documentation, guidelines for the use of requests
for proposals, invitations to bid, or other methods of bidding, and a
bid protest procedure. The general manager shall determine whether
the goods or services subject to this paragraph are available through
existing contracts or price schedules of the Department of General
Services. The Legislature finds and declares that fairs are a
valuable community resource and recognizes that local businesses and
local communities make valuable contributions to fairs that include
direct and indirect support of fair programs. The Legislature further
finds and declares that local businesses often provide opportunity
purchases to local fairs that, for similar things available through
the state purchasing program, may be purchased locally at a price
equivalent to or less than that available through the state
purchasing program. As used in this subdivision, opportunity
purchases means purchases made locally, either individually or
cooperatively, at a price equal to or less than the price available
through the state purchasing program on or off state contract.
(2) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one hundred thousand dollars
($100,000). The board shall establish, as part of the bidding
procedures for general contracts, subcontracting guidelines that
implement this requirement.
(3) With the approval of the Department of General Services,
pledge any and all revenues, moneys, accounts, accounts receivable,
contract rights, and other rights to payment of whatever kind,
pursuant to terms and conditions approved by the board. Any issuance
of bonds, contracts entered into, debts incurred, settlements,
judgments, or liens under this section or pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, shall not directly, indirectly, or contingently
obligate the state or any political subdivision of the state to levy
or to pledge any form of taxation therefor or to make any
appropriation for their payment. The bond shall contain on its face a
statement to the following effect: "Neither the full faith and
credit nor the taxing power of the State of California is pledged to
the payment of the principal of, or interest on, this bond."
(4) This section shall not apply to Article 1 (commencing with
Section 4101) of Chapter 6 of Part 3.
(c) (1) Notwithstanding any other law, an association shall adopt
a fiscal review policy as follows:
(A) An association with an annual budget exceeding five million
dollars ($5,000,000) shall conduct an annual audit by an independent
certified public accountant or certified public accountancy firm
selected by the board.
(B) An association with an annual budget of less than five million
dollars ($5,000,000) shall have its books and accounts examined and
reviewed annually and audited once every three years by an
independent certified public accountant or certified public
accountancy firm selected by the board.
(2) Notwithstanding paragraph (1), the department may require an
audit to be conducted before the times specified in subparagraphs (A)
and (B) of paragraph (1) if the department or the state deems the
audit is necessary.
SEC. 7. Section 4051.2 of the Food and Agricultural Code is
amended to read:
4051.2. An association shall not enter into a settlement
agreement for an amount greater than one hundred thousand dollars
($100,000) without the prior approval of the department.
SEC. 8. Section 4053 of the Food and Agricultural Code is
repealed.
SEC. 9. Section 4057 of the Food and Agricultural Code is amended
to read:
4057. The state is not liable for any action, obligation,
commitment, contract, or premium that is offered, or award that is
made, by any association.
SEC. 10. Section 4061 is added to the Food and Agricultural Code,
to read:
4061. (a) Notwithstanding any other law, a district agricultural
association shall not be required to prepare or submit any written
report to the Governor, the Legislature, or a state agency except as
follows:
(1) The report is required by a court or under federal law.
(2) The report is required in the Budget Act.
(3) The report is required by the secretary.
(4) The Legislature expressly requires a district agricultural
association to prepare and submit a report.
(b) This section shall not be construed and is not intended to
extend or limit the provisions of the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code).
SEC. 11. Section 13332.09 of the Government Code is amended to
read:
13332.09. (a) A purchase order or other form of documentation for
acquisition or replacement of motor vehicles shall not be issued
against any appropriation until the Department of General Services
has investigated and established the necessity therefor.
(b) A state agency shall not acquire surplus mobile equipment from
any source for program support until the Department of General
Services has investigated and established the necessity therefor.
(c) Notwithstanding any other law, any contract for the
acquisition of a motor vehicle or general use mobile equipment for a
state agency shall be made by or under the supervision of the
Department of General Services. Pursuant to Section 10298 of the
Public Contract Code, the Department of General Services may collect
a fee to offset the cost of the services provided.
(d) Any passenger-type motor vehicle purchased for a state
officer, except a constitutional officer, or a state employee shall
be an American-made vehicle of the light class, as defined by the
California Victim Compensation and Government Claims Board, unless
excepted by the Director of General Services on the basis of unusual
requirements, including, but not limited to, use by the California
Highway Patrol, that would justify the need for a motor vehicle of a
heavier class.
(e) General use mobile equipment having an original purchase price
of twenty-five thousand dollars ($25,000) or more shall not be
rented or leased from a nonstate source and payment therefor shall
not be made from any appropriation for the use of the Department of
Transportation, without the prior approval of the Department of
General Services after a determination that comparable state-owned
equipment is not available, unless obtaining approval would endanger
life or property, in which case the transaction and the justification
for not having sought prior approval shall be reported immediately
thereafter to the Department of General Services.
(f) (1) The Trustees of the California State University shall, to
the greatest extent feasible, purchase vehicles using statewide
commodity contracts.
(2) The trustees shall make an interim report to the Governor and
the Legislature on January 1, 2014, and a final report on January 1,
2015, on their motor vehicle procurement, including all of the
following:
(A) An inventory, by campus, of motor vehicles that includes the
type of vehicle, vehicle usage, and fuel data consistent with the
Department of General Services fleet asset management system and
reported to the Department of General Services.
(B) The number of motor vehicles purchased during the prior fiscal
year, disaggregated by campus and type of vehicle if the passenger
vehicle or truck was purchased through statewide commodity contracts,
and the purchase price.
(C) Any change to a policy or procedure made during the prior
fiscal year related to motor vehicle procurement and contracts for
procurement and identifying any vehicle procured pursuant to the new
policy or procedure.
(D) The average time to complete procurements, average
administrative costs, reduced charges paid to the Department of
General Services, and competitive or reduced market prices obtained
for the vehicles.
(3) A report submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795.
(g) As used in this section:
(1) "General use mobile equipment" means equipment that is listed
in the Mobile Equipment Inventory of the State Equipment Council and
capable of being used by more than one state agency, and shall not be
deemed to refer to equipment having a practical use limited only to
the controlling state agency. Section 575 of the Vehicle Code shall
not have application to this section.
(2) "State agency" means a state agency, as defined pursuant to
Section 11000. The University of California is requested and
encouraged to have the Department of General Services perform the
tasks identified in this section with respect to the acquisition or
replacement of motor vehicles by the University of California. "State
agency" does not include a district agricultural association, as
defined in Section 3951 of the Food and Agricultural Code.
(h) This section shall remain in effect only until July 1, 2015,
and as of that date is repealed.
SEC. 12. Section 13332.09 is added to the Government Code, to
read:
13332.09. (a) A purchase order or other form of documentation for
acquisition or replacement of motor vehicles shall not be issued
against any appropriation until the Department of General Services
has investigated and established the necessity therefor.
(b) A state agency shall not acquire surplus mobile equipment from
any source for program support until the Department of General
Services has investigated and established the necessity therefor.
(c) Notwithstanding any other law, any contract for the
acquisition of a motor vehicle or general use mobile equipment for a
state agency shall be made by or under the supervision of the
Department of General Services. Pursuant to Section 10298 of the
Public Contract Code, the Department of General Services may collect
a fee to offset the cost of the services provided.
(d) Any passenger-type motor vehicle purchased for a state
officer, except a constitutional officer, or a state employee shall
be an American-made vehicle of the light class, as defined by the
California Victim Compensation and Government Claims Board, unless
excepted by the Director of General Services on the basis of unusual
requirements, including, but not limited to, use by the California
Highway Patrol, that would justify the need for a motor vehicle of a
heavier class.
(e) General use mobile equipment having an original purchase price
of twenty-five thousand dollars ($25,000) or more shall not be
rented or leased from a nonstate source and payment therefor shall
not be made from any appropriation for the use of the Department of
Transportation, without the prior approval of the Department of
General Services after a determination that comparable state-owned
equipment is not available, unless obtaining approval would endanger
life or property, in which case the transaction and the justification
for not having sought prior approval shall be reported immediately
thereafter to the Department of General Services.
(f) As used in this section:
(1) "General use mobile equipment" means equipment that is listed
in the Mobile Equipment Inventory of the State Equipment Council and
capable of being used by more than one state agency, and shall not be
deemed to refer to equipment having a practical use limited to the
controlling state agency only. Section 575 of the Vehicle Code shall
have no application to this section.
(2) "State agency" means a state agency, as defined pursuant to
Section 11000. The University of California is requested and
encouraged to have the Department of General Services perform the
tasks identified in this section with respect to the acquisition or
replacement of motor vehicles by the University of California. "State
agency" does not include a district agricultural association, as
defined in Section 3951 of the Food and Agricultural Code.
(g) This section shall become operative on July 1, 2015.
SEC. 13. Section 10320 of the Public Contract Code is repealed.
SEC. 14. Section 10321 of the Public Contract Code is repealed.
SEC. 15. Section 42926 of the Public Resources Code is amended to
read:
42926. (a) In addition to the information provided to the
department pursuant to Section 12167.1 of the Public Contract Code,
each state agency shall submit an annual report to the department
summarizing its progress in reducing solid waste as required by
Section 42921. The annual report shall be due on or before May 1,
2012, and on or before May 1 in each subsequent year. The information
in this report shall encompass the previous calendar year.
(b) Each state agency's annual report to the department shall, at
a minimum, include all of the following:
(1) Calculations of annual disposal reduction.
(2) Information on the changes in waste generated or disposed of
due to increases or decreases in employees, economics, or other
factors.
(3) A summary of progress made in implementing the integrated
waste management plan.
(4) The extent to which the state agency intends to utilize
programs or facilities established by the local agency for the
handling, diversion, and disposal of solid waste. If the state agency
does not intend to utilize those established programs or facilities,
the state agency shall identify sufficient disposal capacity for
solid waste that is not source reduced, recycled, or composted.
(5) Other information relevant to compliance with Section 42921.
(c) The department shall use, but is not limited to the use of,
the annual report in the determination of whether the agency's
integrated waste management plan needs to be revised.
(d) For purposes of this section, the meaning of "state agency"
does not include a district agricultural association, as defined in
Section 3951 of the Food and Agricultural Code.