AB 1351: District agricultural associations: authorized activities.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-10-07
Existing law provides for the establishment of district agricultural associations and authorizes a district agricultural association to engage in various activities, including the lease of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board of directors of the district agricultural association.
This bill would expand this authority to include the operation of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board. The bill would also include within the purposes for the lease of its real property the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined, pursuant to a lease of not more than 55 years.
This bill would incorporate additional changes to Section 4051 of the Food and Agricultural Code proposed by AB 1131 to be operative only if this bill and AB 1131 are enacted and this bill is enacted last.
Existing law provides for the establishment of district agricultural associations and authorizes a district agricultural association to engage in various activities, including the lease of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board of directors of the district agricultural association.
This bill would expand this authority to include the operation of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board. The bill would also include within the purposes for the lease of its real property the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined, pursuant to a lease of not more than 55 years.
This bill would incorporate additional changes to Section 4051 of the Food and Agricultural Code proposed by AB 1131 to be operative only if this bill and AB 1131 are enacted and this bill is enacted last.
Existing law provides for the establishment of district agricultural associations and authorizes a district agricultural association to engage in various activities, including the lease of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board of directors of the district agricultural association.
This bill would expand this authority to include the operation of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board. The bill would also include within the purposes for the lease of its real property the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined, pursuant to a lease of not more than 55 years.
This bill would incorporate additional changes to Section 4051 of the Food and Agricultural Code proposed by AB 1131 to be operative only if this bill and AB 1131 are enacted and this bill is enacted last.
Existing law provides for the establishment of district agricultural associations and authorizes a district agricultural association to engage in various activities, including the lease of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board of directors of the district agricultural association.
This bill would expand this authority to include the operation of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board. The bill would also include within the purposes for the lease of its real property the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined, pursuant to a lease of not more than 55 years.
This bill would incorporate additional changes to Section 4051 of the Food and Agricultural Code proposed by AB 1131 to be operative only if this bill and AB 1131 are enacted and this bill is enacted last.
Existing law provides for the establishment of district agricultural associations and authorizes a district agricultural association to exercise certain powers, engage in various activities, including the power to use or manage lease of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board of directors of the district agricultural association.
This bill would expand this authority to include the power to operate any of the operation of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board. The bill would also include within the purposes for the lease of its real property the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined, pursuant to a lease of not more than 55 years.
Existing law provides for the establishment of district agricultural associations and authorizes a district agricultural association to exercise certain powers, including the power to use or manage any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board of directors of the district agricultural association.
This bill would expand this authority to include the power to operate any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board.
(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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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. 1.5.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)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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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)Notwithstanding any other law, an association shall adopt a fiscal review policy as follows:
(1)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.
(2)(A)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.
(B)Solely for the 50th District Agricultural Association, which has entered 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), to manage the responsibilities of the association, the joint powers agency shall be the entity responsible for ensuring that the annual examinations and reviews and the audits required by this paragraph are conducted. If the joint powers agency performs separate audits of the association and the joint powers agency, the joint powers agency shall submit both audits to the department in the manner prescribed in this chapter.
(d)Notwithstanding subdivision (c), the department may require an audit to be conducted before the times specified in paragraphs (1) and (2) of subdivision (c) if the department or the state deems the audit is necessary.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 4051 of the Food and Agricultural Code proposed by both this bill and Assembly Bill 1131. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 4051 of the Food and Agricultural Code, and (3) this bill is enacted after Assembly Bill 1131, in which case Section 1 of this bill shall not become operative.
(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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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. 1.5.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)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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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)Notwithstanding any other law, an association shall adopt a fiscal review policy as follows:
(1)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.
(2)(A)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.
(B)Solely for the 50th District Agricultural Association, which has entered 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), to manage the responsibilities of the association, the joint powers agency shall be the entity responsible for ensuring that the annual examinations and reviews and the audits required by this paragraph are conducted. If the joint powers agency performs separate audits of the association and the joint powers agency, the joint powers agency shall submit both audits to the department in the manner prescribed in this chapter.
(d)Notwithstanding subdivision (c), the department may require an audit to be conducted before the times specified in paragraphs (1) and (2) of subdivision (c) if the department or the state deems the audit is necessary.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 4051 of the Food and Agricultural Code proposed by both this bill and Assembly Bill 1131. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 4051 of the Food and Agricultural Code, and (3) this bill is enacted after Assembly Bill 1131, in which case Section 1 of this bill shall not become operative.
(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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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. 1.5.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)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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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)Notwithstanding any other law, an association shall adopt a fiscal review policy as follows:
(1)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.
(2)(A)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.
(B)Solely for the 50th District Agricultural Association, which has entered 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), to manage the responsibilities of the association, the joint powers agency shall be the entity responsible for ensuring that the annual examinations and reviews and the audits required by this paragraph are conducted. If the joint powers agency performs separate audits of the association and the joint powers agency, the joint powers agency shall submit both audits to the department in the manner prescribed in this chapter.
(d)Notwithstanding subdivision (c), the department may require an audit to be conducted before the times specified in paragraphs (1) and (2) of subdivision (c) if the department or the state deems the audit is necessary.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 4051 of the Food and Agricultural Code proposed by both this bill and Assembly Bill 1131. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 4051 of the Food and Agricultural Code, and (3) this bill is enacted after Assembly Bill 1131, in which case Section 1 of this bill shall not become operative.
(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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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. 1.5.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)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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use Use, manage, or manage operate 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, secretary, 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)(1)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)(2)(A)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.
(B)Solely for the 50th District Agricultural Association, which has entered 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), to manage the responsibilities of the association, the joint powers agency shall be the entity responsible for ensuring that the annual examinations and reviews and the audits required by this paragraph are conducted.
(2)(d)Notwithstanding paragraph (1), subdivision (c), the department may require an audit to be conducted before the times specified in subparagraphs (A) paragraphs (1) and (B) (2) of paragraph (1) subdivision (c) if the department or the state deems the audit is necessary.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 4051 of the Food and Agricultural Code proposed by both this bill and Assembly Bill 1131. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 4051 of the Food and Agricultural Code, and (3) this bill is enacted after Assembly Bill 1131, in which case Section 1 of this bill shall not become operative.
(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 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 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 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. This purpose may include, but not be limited to, the construction and maintenance of housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, pursuant to a lease of not more than 55 years.
(13)Use, manage, or operate 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, 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.
(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 Use, manage, or operate 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, secretary, 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.
|
Date
|
Status
|
|---|---|
| Oct 7, 2017 | Chaptered by Secretary of State - Chapter 559, Statutes of 2017. |
| Oct 7, 2017 | Approved by the Governor. |
| Sep 12, 2017 | Enrolled and presented to the Governor at 2:30 p.m. |
| Sep 5, 2017 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 55. Noes 21.). |
| Aug 31, 2017 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 2 pursuant to Assembly Rule 77. |
| Aug 31, 2017 | Read third time. Passed. Ordered to the Assembly. |
| Aug 28, 2017 | Read second time. Ordered to third reading. |
| Aug 24, 2017 | Read third time and amended. Ordered to second reading. |
| Jul 18, 2017 | Read second time. Ordered to third reading. |
| Jul 17, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jul 10, 2017 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| Jul 5, 2017 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 20, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 0.) (June 20). Re-referred to Com. on APPR. |
| May 24, 2017 | Referred to Com. on AGRI. |
| May 11, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 11, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 20. Page 1471.) |
| Apr 27, 2017 | Read second time. Ordered to third reading. |
| Apr 26, 2017 | From committee: Do pass. (Ayes 13. Noes 3.) (April 26). |
| Apr 6, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 5). Re-referred to Com. on APPR. |
| Mar 16, 2017 | Re-referred to Com. on AGRI. |
| Mar 15, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on AGRI. Read second time and amended. |
| Mar 13, 2017 | Referred to Com. on AGRI. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 5, 2017 | AB 1351 CABALLERO Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 31, 2017 | Assembly 3rd Reading AB1351 Caballero By Galgiani | Senate Floor |
Passed |
|
| Jun 20, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Agriculture |
Passed |
|
| May 11, 2017 | AB 1351 CABALLERO Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 26, 2017 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 5, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Agriculture |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1351
Author:(Caballero)
As Amended Ver:August 24, 2017
Majority vote
ASSEMBLY: | 56-20 | (May 11, 2017) | SENATE: | 28-8 | (August 31, 2017) |
Original Committee Reference: AGRI.
SUMMARY: This bill allows, under a District Agriculture Association (DAA) leasing authority and with the California Department of General Services' (DGS) approval, the lease, construction and maintenance of affordable housing, as specified, on DAA property.
The Senate amendments:
- Incorporate language from AB 1131 (Lackey) of the current legislative session, clarifying that when the 50th DAA enters in to a Joint Powers Authority (JPA) in which the JPA manages the responsibilities of the DAA, the JPA has responsibility for audits as specified.
- State that if a JPA performs separate audits of the DAA and the JPA, the JPA shall submit both audits to DGS, as specified.
- State that these provisions only become operative if this bill and AB 1131 are enacted, as specified.
EXISTING LAW establishes DAAs and authorizes a DAA to exercise certain powers, engage in various activities, including the power to use or manage leases of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee for any purpose approved by the board of directors of the DAA.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: There are 54 statutory DAAs, of which 52 are active, and 41 operate on state owned lands. They hold various activities on their sites, such as fairs, day care operations, fund raising and commercial events. DAAs in some areas provide the only event space for the local community. DAA budgets run from several hundred thousand dollars to over 10 million dollars. Only a few DAAs are self-sustaining, most are not. Additionally, almost all have deferred maintenance of buildings or grounds, or both.
DAAs were historically subsidized by the state through a portion of horse racing revenues until 2009, when it was switched to the state general fund (GF) in the amount of $32 million. In 2011, the GF dollars were deleted and DAAs have been operating on their reserves and revenues. As a result of the withdrawal of state funds, DAAs have been given some flexibility on purchasing and contracting rules. DAAs are still required to get permission from DGS for contract related to state property.
A 2014 report by the California Housing Partnership Corporation stated that California needs roughly one million more affordable housing units. California's Department of Housing and Community Development (CHCD) has issued a recent assessment of the state's housing problems, reporting that California homeownership rates are at their lowest since the 1940s. More than 1.5 million households in California pay more than half of their income toward rent.
One challenge is finding land to help accommodate the millions of units California needs. According to the author, many fairgrounds, however, are well-suited to engage in a number of various activities, one such possibility being affordable or workforce housing. Furthermore, the author asserts this bill has the potential to help California create more housing options by allowing for the construction and maintenance of affordable housing units on fairground property. The lease time for the affordable housing units would be for no more than 55 years. This time limit is consistent with CHCD's affordable housing terms.
Currently only one DAA has affordable housing on fairgrounds. 10A DAA Tulelake Fair has temporary affordable housing that is dedicated for farm workers. In 2008, the Santa Clara County Fairgrounds had a proposal to\ create hundreds of units for families, low-income individuals, and seniors in cooperation with Santa Clara County and developers. The plan didn't happen, mostly due to the crash in the housing market at that time.
Under current law a DAA board can, with the approval of DGS, lease property, or any portion of that property, to any person or public body for any purpose. This bill would more easily allow for these longer lease contracts if the lease fulfills the goal of affordable housing.
RELATED LEGISLATION: AB 1131 states that if the 50th DAA is part of a JPA, the JPA agency is responsible for conducting annual examinations and reviews of its books, and a triennial audit.
This bill is substantially similar to the version passed by the Assembly.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0001432
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1351
Amended: 8/24/17 in Senate
SENATE AGRICULTURE COMMITTEE: 3-0, 6/20/17
AYES: Galgiani, Dodd, Pan
NO VOTE RECORDED: Wilk, Berryhill
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 56-20, 5/11/17 - See last page for vote
DIGEST:
This bill authorizes a district agricultural association, with the approval of the Department of General Services, to lease, for not more than 55 years, fairground property for the construction and maintenance of affordable housing.
Senate Floor Amendments of 8/24/17 update the double jointing language contained in this bill to accurately reflect recent amendments taken in AB 1131 (Lackey).
Existing law:
- Authorizes the district agricultural associations (DAAs), without the approval of the California Department of Food and Agriculture (CDFA) or the Department of General Services (DGS), to:
- Enter into contracts, as specified
- Accept funds or gifts
- Contract for the purchase or lease of goods
- Establish and maintain bank accounts
- Approve annual budgets
- Contract with any county or county fair association to hold a joint fair
- Make or adopt all necessary orders, rules, or regulations governing the activities of the association
- Operate a payroll system
- Delegate powers of the board of directors of DAA (the board) to employees to manage and operate the DAA
- Use or manage any of its property jointly or in connection with any lessee or sublessee, for any purpose approved by the board
- Authorizes DAAs, with the approval of DGS, to:
- Purchase, acquire, hold, sell, or exchange real property
- Make permanent improvements upon publically owned real property adjacent to or near DAA property when the improvements materially benefit the property of the DAA
- Lease DAA real property to any person or public body for whatever purpose as may be approved by the board
- Take out a lien or security interest on a DAA property and pledge revenues, monies, accounts, accounts receivable, contract rights, and other rights to payment
This bill:
- Authorizes a DAA, with approval of DGS, to lease all or a portion of the fairgrounds property for the construction and maintenance of affordable housing, as defined. The lease is limited to a maximum 55 years.
- Authorizes a DAA to operate, in addition to manage and use, any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board.
- Includes double jointing provisions to prevent chaptering out issues with AB 1131 (Lackey, 2017).
Background
California fairs have been in existence since 1854, and the network has since grown to encompass 77 fairs statewide. This network of California fairs is composed of 52 DAAs, 22 county fairs, two citrus fruit fairs, and the California Exposition and State Fair (Cal Expo). DAAs are state government entities governed by nine-member gubernatorially appointed boards of directors (fair boards). In contrast, county fairs are county government or not-for-profit organizations; citrus fruit fairs are not-for-profit organizations; and Cal Expo is a state agency.
In 2009, California fairs generated a $2.85 billion economic impact from consumer sales, $855 million in income for California employees, $127 million in annual state and local tax revenues, and provided 25,000 jobs. Fairs serve the local community by providing a venue for a variety of agricultural and local community events such as livestock shows and competitions, county fairs, trade shows, exhibits, and food, nutrition, and agricultural education. Fairgrounds also serve the state by assisting in emergency preparedness and response. In the event of natural disasters, fairgrounds may be transformed into command centers for the California Department of Forestry and Fire Protection, California Emergency Management Agency, Homeland Security, law enforcement, and Federal Emergency Management Agency. They also provide shelter for displaced persons and their pets and livestock.
The Division of Fairs and Expositions within CDFA provides fiscal and policy oversight for the network of California fairs, and DGS provides oversight for use of state property, procurement, and services contracts (Business and Professions Code §19400 et seq.; Food and Agricultural Code §3001 et seq.).
Affordable housing. The California Department of Housing and Community Development released a public draft titled “California’s Housing Future: Challenges and Opportunities,” which represents the 2025 Statewide Housing Assessment. This document states that homeownership rates are at their lowest since the 1940s, and one-third of renters spend more than 50% of their income on rent. Additionally, California homes are becoming less affordable as housing prices rise, leading people to overpay for housing, “over commute” to work, and overcrowd living spaces. This tends to lead to homelessness or housing instability. Options for addressing these housing challenges include reforming land use policies, improving interagency coordination to address housing and access needs, and investing in affordable home development.
Comments
Affordable housing at fairs. Under current law, DAAs can lease property to anyone for any purpose with the approval of DGS. One DAA, the Tulelake-Butte Valley Fair (10A DAA), currently has a farmworker affordable housing project located on the fairgrounds. However, this is temporary housing used for seasonal farmworkers and there is no formal lease agreement. Additionally, an affordable housing project was planned for the Santa Clara Fairgrounds (a county fair, not a DAA) that would have housed over 300 families. The project had financial backing from private developers and the City of San Jose; however, the project was halted due to the economic downturn in 2008.
Need for this bill. AB 2490 (Eggman, Chapter 342, Statutes of 2014) authorized DAAs to lease real property for any purpose with the approval of DGS. This bill specifies that building affordable housing and allowing for a 55-year lease will be one such purpose. This bill also allows a DAA to operate (in addition to use and manage) any of its property jointly with a lessee or sublessee.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
OPPOSITION: (Verified 8/24/17)
None received
ARGUMENTS IN SUPPORT: According to the author, “California is in a housing crisis. It is estimated that the state has a housing deficit of 1 million units across all income levels. There is overcrowding in many neighborhoods and schools, which furthers insecurity and put additional strain on public services. With this housing deficit comes an opportunity to get creative and smart about creating more housing options. AB 1351 does just that by making it easier to use fairgrounds for affordable housing. Fairgrounds are well-suited to house affordable or workforce units and many fairgrounds have space that is underutilized. Additionally, all of the Fairgrounds struggle financially to keep up with repair and maintenance costs to keep the facilities open to the public. Leasing property that is not actively used could provide the Fair Boards with much needed revenue on an annual basis.”
ASSEMBLY FLOOR: 56-20, 5/11/17
AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Eggman, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Levine, Limón, Low, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, Quirk, Quirk-Silva, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chávez, Chen, Choi, Cunningham, Flora, Fong, Harper, Kiley, Maienschein, Mathis, Mayes, Melendez, Steinorth, Voepel, Waldron
NO VOTE RECORDED: Dahle, O'Donnell, Patterson, Reyes
8/29/17 15:51:04
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1351
:
SENATE AGRICULTURE COMMITTEE: 3-0, 6/20/17
AYES: Galgiani, Dodd, Pan
NO VOTE RECORDED: Wilk, Berryhill
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 56-20, 5/11/17 - See last page for vote
DIGEST:
This bill authorizes a district agricultural association, with the approval of the Department of General Services, to lease, for not more than 55 years, fairground property for the construction and maintenance of affordable housing.
Existing law:
- Authorizes the district agricultural associations (DAAs), without the approval of the California Department of Food and Agriculture (CDFA) or the Department of General Services (DGS), to:
- Enter into contracts, as specified
- Accept funds or gifts
- Contract for the purchase or lease of goods
- Establish and maintain bank accounts
- Approve annual budgets
- Contract with any county or county fair association to hold a joint fair
- Make or adopt all necessary orders, rules, or regulations governing the activities of the association
- Operate a payroll system
- Delegate powers of the board of directors of DAA (the board) to employees to manage and operate the DAA
- Use or manage any of its property jointly or in connection with any lessee or sublessee, for any purpose approved by the board
- Authorizes DAAs, with the approval of DGS, to:
- Purchase, acquire, hold, sell, or exchange real property
- Make permanent improvements upon publically owned real property adjacent to or near DAA property when the improvements materially benefit the property of the DAA
- Lease DAA real property to any person or public body for whatever purpose as may be approved by the board
- Take out a lien or security interest on a DAA property and pledge revenues, monies, accounts, accounts receivable, contract rights, and other rights to payment
This bill:
- Authorizes a DAA, with approval of DGS, to lease all or a portion of the fairgrounds property for the construction and maintenance of affordable housing, as defined. The lease is limited to a maximum 55 years.
- Authorizes a DAA to operate, in addition to manage and use, any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board.
- Includes double jointing provisions to prevent chaptering out issues with AB 1131 (Lackey, 2017).
Background
California fairs have been in existence since 1854, and the network has since grown to encompass 77 fairs statewide. This network of California fairs is composed of 52 DAAs, 22 county fairs, two citrus fruit fairs, and the California Exposition and State Fair (Cal Expo). DAAs are state government entities governed by nine-member gubernatorially appointed boards of directors (fair boards). In contrast, county fairs are county government or not-for-profit organizations; citrus fruit fairs are not-for-profit organizations; and Cal Expo is a state agency.
In 2009, California fairs generated a $2.85 billion economic impact from consumer sales, $855 million in income for California employees, $127 million in annual state and local tax revenues, and provided 25,000 jobs. Fairs serve the local community by providing a venue for a variety of agricultural and local community events such as livestock shows and competitions, county fairs, trade shows, exhibits, and food, nutrition, and agricultural education. Fairgrounds also serve the state by assisting in emergency preparedness and response. In the event of natural disasters, fairgrounds may be transformed into command centers for the California Department of Forestry and Fire Protection, California Emergency Management Agency, Homeland Security, law enforcement, and Federal Emergency Management Agency. They also provide shelter for displaced persons and their pets and livestock.
The Division of Fairs and Expositions within CDFA provides fiscal and policy oversight for the network of California fairs, and DGS provides oversight for use of state property, procurement, and services contracts (Business and Professions Code §19400 et seq.; Food and Agricultural Code §3001 et seq.).
Affordable housing. The California Department of Housing and Community Development released a public draft titled “California’s Housing Future: Challenges and Opportunities,” which represents the 2025 Statewide Housing Assessment. This document states that homeownership rates are at their lowest since the 1940s, and one-third of renters spend more than 50% of their income on rent. Additionally, California homes are becoming less affordable as housing prices rise, leading people to overpay for housing, “over commute” to work, and overcrowd living spaces. This tends to lead to homelessness or housing instability. Options for addressing these housing challenges include reforming land use policies, improving interagency coordination to address housing and access needs, and investing in affordable home development.
Comments
Affordable housing at fairs. Under current law, DAAs can lease property to anyone for any purpose with the approval of DGS. One DAA, the Tulelake-Butte Valley Fair (10A DAA), currently has a farmworker affordable housing project located on the fairgrounds. However, this is temporary housing used for seasonal farmworkers and there is no formal lease agreement. Additionally, an affordable housing project was planned for the Santa Clara Fairgrounds (a county fair, not a DAA) that would have housed over 300 families. The project had financial backing from private developers and the City of San Jose; however, the project was halted due to the economic downturn in 2008.
Need for this bill. AB 2490 (Eggman, Chapter 342, Statutes of 2014) authorized DAAs to lease real property for any purpose with the approval of DGS. This bill specifies that building affordable housing and allowing for a 55-year lease will be one such purpose. This bill also allows a DAA to operate (in addition to use and manage) any of its property jointly with a lessee or sublessee.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
OPPOSITION: (Verified 7/17/17)
None received
ARGUMENTS IN SUPPORT: According to the author, “California is in a housing crisis. It is estimated that the state has a housing deficit of 1 million units across all income levels. There is overcrowding in many neighborhoods and schools, which furthers insecurity and put additional strain on public services. With this housing deficit comes an opportunity to get creative and smart about creating more housing options. AB 1351 does just that by making it easier to use fairgrounds for affordable housing. Fairgrounds are well-suited to house affordable or workforce units and many fairgrounds have space that is underutilized. Additionally, all of the Fairgrounds struggle financially to keep up with repair and maintenance costs to keep the facilities open to the public. Leasing property that is not actively used could provide the Fair Boards with much needed revenue on an annual basis.”
ASSEMBLY FLOOR: 56-20, 5/11/17
AYES: Aguiar-Curry, Arambula, Berman, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Eggman, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Levine, Limón, Low, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, Quirk, Quirk-Silva, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Chávez, Chen, Choi, Cunningham, Flora, Fong, Harper, Kiley, Maienschein, Mathis, Mayes, Melendez, Steinorth, Voepel, Waldron
NO VOTE RECORDED: Dahle, O'Donnell, Patterson, Reyes
7/19/17 16:26:47
**** END ****
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2017 - 2018 Regular
Bill No: AB 1351 Hearing Date: 6/20/17
Author: | Caballero | ||
Version: | 3/15/17 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Anne Megaro | ||
Subject: District agricultural associations: authorized activities
SUMMARY
:
This bill would authorize a district agricultural association, with the approval of the Department of General Services, to lease, for not more than 55 years, fairground property for the construction and maintenance of affordable housing.
BACKGROUND AND EXISTING LAW
:
California fairs have been in existence since 1854, and the network has since grown to encompass 77 fairs statewide. This network of California fairs is composed of 52 district agricultural associations (DAA), 22 county fairs, 2 citrus fruit fairs, and The California Exposition and State Fair (Cal Expo). DAAs are state government entities governed by nine-member gubernatorially appointed boards of directors (fair boards). In contrast, county fairs are county government or not-for-profit organizations; citrus fruit fairs are not-for-profit organizations; and Cal Expo is a state agency.
In 2009, California fairs generated a $2.85 billion economic impact from consumer sales, $855 million in income for California employees, $127 million in annual state and local tax revenues, and provided 25,000 jobs. Fairs serve the local community by providing a venue for a variety of agricultural and local community events such as livestock shows and competitions, county fairs, trade shows, exhibits, and food, nutrition, and agricultural education. Fairgrounds also serve the state by assisting in emergency preparedness and response. In the event of natural disasters, fairgrounds may be transformed into command centers for CalFire, CalEMA, Homeland Security, law enforcement, and FEMA. They also provide shelter for displaced persons and their pets and livestock.
The Division of Fairs and Expositions within the California Department of Food and Agriculture (CDFA) provides fiscal and policy oversight for the network of California fairs, and the Department of General Services (DGS) provides oversight for use of state property, procurement, and services contracts (Business and Professions Code §19400 et seq.; Food and Agricultural Code §3001 et seq.).
Affordable housing. The California Department of Housing and Community Development released a public draft titled “California’s Housing Future: Challenges and Opportunities,” which represents the 2025 Statewide Housing Assessment. This document states that homeownership rates are at their lowest since the 1940s, and one-third of renters spend more than 50% of their income on rent. Additionally, California homes are becoming less affordable as housing prices rise, leading people to overpay for housing, “over commute” to work, and overcrowd living spaces. This tends to lead to homelessness or housing instability. Options for addressing these housing challenges include reforming land use policies, improving interagency coordination to address housing and access needs, and investing in affordable home development.
Current law:
- Authorizes DAAs, without the approval of CDFA or DGS, to:
- Enter into contracts, as specified
- Accept funds or gifts
- Contract for the purchase or lease of goods
- Establish and maintain bank accounts
- Approve annual budgets
- Contract with any county or county fair association to hold a joint fair
- Make or adopt all necessary orders, rules, or regulations governing the activities of the association
- Operate a payroll system
- Delegate powers of the board to employees to manage and operate the DAA
- Use or manage any of its property jointly or in connection with any lessee or sublessee, for any purpose approved by the board
- Authorizes DAAs, with the approval of DGS, to:
- Purchase, acquire, hold, sell, or exchange real property
- Make permanent improvements upon publically owned real property adjacent to or near DAA property when the improvements materially benefit the property of the DAA
- Lease DAA real property to any person or public body for whatever purpose as may be approved by the board
- Take out a lien or security interest on a DAA property and pledge revenues, monies, accounts, accounts receivable, contract rights, and other rights to payment
PROPOSED LAW
:
This bill:
- Authorizes a DAA, with approval of DGS, to lease all or a portion of the fairgrounds property for the construction and maintenance of affordable housing, as defined. The lease is limited to a maximum 55 years.
- Authorizes a DAA to operate, in addition to manage and use, any of its property jointly or in connection with any lessee or sublessee for any purpose approved by the board.
ARGUMENTS IN SUPPORT:
According to the author, “California is in a housing crisis. It is estimated that the state has a housing deficit of 1 million units across all income levels. There is overcrowding in many neighborhoods and schools, which furthers insecurity and put additional strain on public services. With this housing deficit comes an opportunity to get creative and smart about creating more housing options. AB 1351 does just that by making it easier to use fairgrounds for affordable housing. Fairgrounds are well-suited to house affordable or workforce units and many fairgrounds have space that is underutilized. Additionally, all of the Fairgrounds struggle financially to keep up with repair and maintenance costs to keep the facilities open to the public. Leasing property that is not actively used could provide the Fair Boards with much needed revenue on an annual basis.”
COMMENTS
:
Affordable housing at fairs. Under current law, DAAs can lease property to anyone for any purpose with the approval of DGS. One DAA, the Tulelake-Butte Valley Fair (10A DAA), currently has a farmworker affordable housing project located on the fairgrounds. However, this is temporary housing used for seasonal farmworkers and there is no formal lease agreement. Additionally, an affordable housing project was planned for the Santa Clara Fairgrounds (a county fair, not a DAA) that would have housed over 300 families. The project had financial backing from private developers and the City of San Jose; however, the project was halted due to the economic downturn in 2008.
Need for this bill. AB 2490 of 2014 authorized DAAs to lease real property for any purpose with the approval of DGS. This bill would specify that building affordable housing and allowing for a 55-year lease would be one such purpose. This bill would also allow a DAA to operate (in addition to use and manage) any of its property jointly with a lessee or sublessee.
RELATED LEGISLATION
:
AB 2490 (Eggman), Chapter 342, Statutes of 2014. Revises several provisions relating to state oversight of district agricultural associations. Authorizes these fairs to take specified actions without the prior approval of state agencies, authorizes the governor to remove fair board members with cause, and reduces the frequency of audits for smaller fairs, among other provisions and technical changes.
PRIOR ACTIONS
:
Assembly Floor: | 56 - 20 |
Assembly Appropriations Committee: | 13 - 3 |
Assembly Agriculture Committee: | 7 - 0 |
SUPPORT
:
None received
OPPOSITION
:
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1351
Author:(Caballero)
As Amended Ver:March 15, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Agriculture | 7-0 | Caballero, Aguiar-Curry, Gray, Irwin, Jones-Sawyer, Quirk, Salas | |
Appropriations | 13-3 | Gonzalez Fletcher, Bloom, Bocanegra, Bonta, McCarty, Chau, Eggman, Friedman, Eduardo Garcia, Gray, Muratsuchi, Obernolte, Reyes | Bigelow, Brough, Fong |
SUMMARY: This bill allows, under a District Agriculture Association (DAA) leasing authority and with the California Department of General Services' (DGS) approval, the lease, construction and maintenance of affordable housing, as specified, on DAA property.
EXISTING LAW establishes DAAs and authorizes a DAA to exercise certain powers, engage in various activities, including the power to use or manage leases of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee for any purpose approved by the board of directors of the DAA.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has no additional state costs.
COMMENTS: There are 54 statutory DAAs, of which 52 are active, and 41 operate on state owned lands. They hold various activities on their sites, such as fairs, day care operations, fund raising and commercial events. DAAs in some areas provide the only event space for the local community. DAA budgets run from several hundred thousand dollars to over ten million dollars. Only a few DAAs are self-sustaining, most are not. Additionally, almost all have deferred maintenance of buildings or grounds, or both.
DAAs were historically subsidized by the state through a portion of horse racing revenues until 2009, when it was switched to the state general fund (GF) in the amount of $32 million. In 2011, the GF dollars were deleted and DAAs have been operating on their reserves and revenues. As a result of the withdrawal of state funds, DAAs have been given some flexibility on purchasing and contracting rules. DAAs are still required to get permission from DGS for contract related to state property.
A 2014 report by the California Housing Partnership Corporation stated that California needs roughly 1 million more affordable housing units. California's Department of Housing and Community Development (CHCD) has issued a recent assessment of the state's housing problems, reporting that California homeownership rates are at their lowest since the 1940s. More than 1.5 million households in California pay more than half of their income toward rent.
One challenge is finding land to help accommodate the millions of units California needs. According to the author, many fairgrounds, however, are well-suited to engage in a number of various activities, one such possibility being affordable or workforce housing. Furthermore, the author asserts this bill has the potential to help California create more housing options by allowing for the construction and maintenance of affordable housing units on fairground property. The lease time for the affordable housing units would be for no more than 55 years. This time limit is consistent with CHCD’s affordable housing terms.
Currently only one DAA has affordable housing on fairgrounds. 10A DAA Tulelake Fair has temporary affordable housing that is dedicated for farm workers. In 2008, the Santa Clara County Fairgrounds had a proposal to create hundreds of units for families, low-income individuals, and seniors in cooperation with Santa Clara County and developers. The plan didn't happen, mostly due to the crash in the housing market at that time.
Under current law a DAA board can, with the approval of DGS, lease property, or any portion of that property, to any person or public body for any purpose. This bill would more easily allow for these longer lease contracts if the lease fulfills the goal of affordable housing.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0000170
Date of Hearing: April 26, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1351
Author:(Caballero) – As Amended Ver:March 15, 2017
Policy Committee: | Agriculture | Vote: | 7 - 0 |
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill clarifies that a District Agriculture Association (DAA) may, with the approval of the Department of General Services (DGS), lease its property for the purposes of constructing or maintaining affordable housing for low- or moderate-income households.
FISCAL EFFECT:
No additional state costs.
COMMENTS:
Background and Purpose. There are 54 statutory DAAs, of which 52 are active, and 41 operate on state-owned lands. They hold various activities on their sites, such as fairs, day care operations, and fundraising and commercial events.
Under current law, a DAA board may, with the approval of DGS, lease property or any portion of that property, to any person or public body for any purpose. This also includes affordable housing, but only Tulelake Fair has affordable housing on its property. In 2008, the Santa Clara County Fairgrounds had a proposal to create hundreds of units for families, low-income individuals, and seniors in cooperation with Santa Clara County, but those plans fell through following the 2008 financial crisis.
According to the author, many fairgrounds are well-suited to address the shortage of affordable or workforce housing in California. This bill is intended to more easily allow for lease contracts that construct and maintain affordable housing on fairground property.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 5, 2017
ASSEMBLY COMMITTEE ON AGRICULTURE
Anna Caballero, Chair
ABPCA Bill Id:AB 1351
Author:(Caballero) – As Amended Ver:March 15, 2017
SUBJECT: District agricultural associations: authorized activities.
SUMMARY: This bill allows, under a District Agriculture Association (DAA) leasing authority and with the California Department of General Services' (DGS) approval, the lease, construction and maintenance of affordable housing, as specified, on DAA property.
EXISTING LAW establishes DAAs and authorizes a DAA to exercise certain powers, engage in various activities, including the power to use or manage leases of its real property to any person or public body for any purpose, subject to specified approvals, as well as the use or management of any of its property jointly or in connection with any lessee for any purpose approved by the board of directors of the DAA.
FISCAL EFFECT: Unknown
COMMENTS: There are 54 statutory DAAs, of which 52 are active, and 41 operate on state owned lands. They hold various activities on their sites, such as fairs, day care operations, fund raising and commercial events. DAAs in some areas provide the only event space for the local community. DAA budgets run from several hundred thousand dollars to over ten million dollars. Only a few DAAs are self-sustaining, most are not. Additionally, almost all have deferred maintenance of buildings or grounds, or both.
DAAs were historically subsidized by the state through a portion of horse racing revenues until 2009, when it was switched to the state general fund (GF) in the amount of $32 million. In 2011, the GF dollars were deleted and DAAs have been operating on their reserves and revenues. As a result of the withdrawal of state funds, DAAs have been given some flexibility on purchasing and contracting rules. DAAs are still required to get permission from DGS for contract related to state property.
A 2014 report by the California Housing Partnership Corporation stated that California needs roughly 1 million more affordable housing units. California’s Department of Housing and Community Development (CHCD) has issued a recent assessment of the state’s housing problems, reporting that California homeownership rates are at their lowest since the 1940s. More than 1.5 million households in California pay more than half of their income toward rent.
One challenge is finding land to help accommodate the millions of units California needs. According to the author, many fairgrounds, however, are well-suited to engage in a number of various activities, one such possibility being affordable or workforce housing. Furthermore the author asserts this bill has the potential to help California create more housing options by allowing for the construction and maintenance of affordable housing units on fairground property. The lease time for the affordable housing units would be for no more than 55 years. This time limit is consistent with CHCD’s affordable housing terms.
Currently two DAAs have affordable housing on fairgrounds. 10A DAA Tulelake Fair has affordable housing that is dedicated for farm workers. In 2008, the Santa Clara County Fairgrounds had a proposal to create hundreds of units for families, low-income individuals, and seniors in cooperation with Santa Clara County and developers. The plan didn't happen, mostly due to the crash in the housing market at that time.
Under current law a DAA board can, with the approval of DGS, lease property, or any portion of that property, to any person or public body for any purpose. AB 1351 would more easily allow for these longer lease contracts if the lease fulfills the goal of affordable housing.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
None on file.
Analysis Prepared by: Victor Francovich / AGRI. / 916-319-2084
Bill Author
Bill Co-Author(s):