California Legislature—2015–16 Regular Session

Assembly Bill No. 315

Introduced by Assembly Member Bigelow

February 12, 2015

An act to amend Section 4051 of the Food and Agricultural Code, relating to district agricultural associations: powers and duties.

LEGISLATIVE COUNSEL’S DIGEST

AB 315, as introduced, Bigelow. District agricultural associations.

Existing law divides the state into agricultural districts, and provides for the management of each district by a district agricultural association. Existing law sets forth the powers and duties of a district agricultural association, including, among others, the power to contract in accordance with specified requirements.

This bill would make nonsubstantive changes to the latter provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 4051 of the Food and Agricultural Code
is amended 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)  begin delete Any end delete begin insert A end insert 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)  begin delete Any end delete begin insert A end insert begin insert end insert 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 begin delete district
agricultural end delete 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 begin delete district
agricultural end delete 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
begin delete Chapter end delete begin insert the Joint Exercise of Powers Act (Chapter end insert 5 (commencing
with Section 6500) of Division 7 of Title 1 of the Government
begin delete Code, end delete begin insert Code), end insert 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.