Bill Text: CA AB1248 | 2019-2020 | Regular Session | Amended

California Assembly Bill 1248 (Prior Session Legislation)

Bill Title: Institutional purchasers: purchase of California-grown agricultural products.

Spectrum: Moderate Partisan Bill (Democrat 9-1-1)

Status: (Engrossed - Dead) 2020-07-02 - Re-referred to Com. on G.O. [AB1248 Detail]

Download: California-2019-AB1248-Amended.html

Amended IN Senate June 29, 2020

Amended IN Senate August 30, 2019

Amended IN Senate June 24, 2019

Amended IN Assembly April 29, 2019

Amended IN Assembly March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill

No. 1248

Introduced by Assembly ~~Member Eduardo Garcia~~ Members Eduardo Garcia, Arambula, Cooper, Cunningham, Mayes, McCarty, Medina, Robert Rivas, Blanca Rubio, and Salas
(Principal coauthor: Senator Caballero)

February 21, 2019

An act to amend Section ~~51298~~ 58595 of the ~~Government~~ Food and Agricultural Code, relating to ~~local government.~~ agricultural products.

LEGISLATIVE COUNSEL'S DIGEST

AB 1248, as amended, Eduardo Garcia. ~~Capital Investment Incentive Program: local governments: property tax abatement.~~ Institutional purchasers: purchase of California-grown agricultural products.

Under existing law, price, fitness, and quality being equal, any body, officer, or other person charged with the purchase, or permitted or authorized to purchase supplies for the use of the state, or of any of its institutions or offices, or for the use of any county or city, is required to always prefer supplies that are manufactured or produced in the state, and is required to next prefer supplies partially manufactured or produced in the state.
Existing law requires all California state-owned or state-run institutions, except public universities and colleges and school districts, to purchase an agricultural product grown in California when the bid or price of the California-grown agricultural product does not exceed by more than 5% the lowest bid or price for an agricultural product produced outside the state and the quality of the California-grown agricultural product is comparable. Existing law also requires the institutions, when they solicit or intend to accept a bid or price for agricultural products grown outside the state, to accept the bid or price from a vendor that packs or processes these agricultural products in the state before accepting a bid or price from a vendor that packs or processes these agricultural products outside of the state when specified conditions are met, including that the bid or price of the agricultural product grown outside the state and packed or processed in the state does not exceed by more than 5% the lowest bid or price for the agricultural product packed or processed outside the state. Existing law requires a school district that solicits bids for the purchase of an agricultural product to accept a bid or price for that agricultural product when it is grown in California before accepting a bid or price for an agricultural product that is grown outside the state when the bid or price of the California-grown agricultural product does not exceed the lowest bid or price for an agricultural product produced outside the state and the quality of the California-grown agricultural product is comparable. Under existing law, these provisions only apply to a contract to purchase agricultural products for a value that is less than the value of the threshold for supplies and services for which California has obligated itself under the Agreement on Government Procurement of the World Trade Organization.
This bill would instead require all California state-owned or state-run institutions, including public universities and colleges and school districts, that purchase agricultural products to only purchase an agricultural product grown in California unless the agricultural product is not available from an in-state source or is not grown in the state. The bill would eliminate the above-described preference for in-state vendors. The bill would eliminate the provision that limits the application of these preferences to contracts to purchase agricultural products for a value that is less than the value of the above-described threshold. The bill would exempt agricultural products provided to a California state-owned or state-run institution by the United States Department of Agriculture through the Foods in Schools program from these preferences. The bill would define “agricultural product” for purposes of these provisions as fruits, tree nuts, peanuts, vegetables, melons, potatoes, meat from livestock, eggs, or dairy products. The bill would require the California State Auditor to investigate violations of these provisions. By creating new duties for school districts and community college districts, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, until January 1, 2024, authorizes the governing body of a county, city and county, or city to establish a capital investment incentive program, pursuant to which the county, city and county, or city is authorized to pay, upon request, a capital investment incentive amount that is an amount up to or equal to the amount of ad valorem property tax revenues allocated to that entity, as specified, derived from that portion of the assessed value of a qualified manufacturing facility, as defined, that exceeds $150,000,000 to a proponent of a qualified manufacturing facility for up to 15 years.
This bill would, commencing with the 2020–21 fiscal year, until January 1, 2024, additionally authorize the governing body of a county, city and county, or city to pay a proponent of a qualified targeted manufacturing facility, as defined, a capital investment incentive amount, for up to 10 consecutive years, that does not exceed the amount of ad valorem property tax revenues allocated to that entity, as specified, derived from that portion of the assessed value that exceeds $5,000,000 of a qualified targeted manufacturing facility located within the jurisdiction of that county, city and county, or city commencing with the first fiscal year after the date upon which the qualified targeted manufacturing facility is certified for occupancy or commences operation, as specified. The bill would require that annual payment of the capital investment incentive amount to be contingent on the proponent’s compliance with a community services agreement, which this bill would require the county, city and county, or city to enter into with the proponent, and the payment of a specified community services fee required to be paid by the proponent to the county, city and county, or city. The bill would prohibit ad valorem property tax revenue amounts with respect to a facility from being taken into account in calculating more than one capital investment incentive.
The bill would require a county, city and county, and city that has approved the payment of a capital investment incentive amount for either a qualified manufacturing facility or qualified targeted manufacturing facility to provide the Governor’s Office of Business and Economic Development with specified information. The bill would require the Governor’s Office of Business and Economic Development to compile the information submitted by each county, city and county, and city and submit a report to the Legislature containing this information, as specified.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOYES

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

SECTION 1.
The Legislature finds and declares both of the following:
(a) Farmers in this state produce fruits, vegetables, nuts, and meat from animal livestock in accordance with the state’s pesticide, labor, and minimum wage laws.
(b) Complying with these state laws increases costs but provides real benefits to the health of consumers, to the environment, and to the workers who produce these goods.

SEC. 2.

Section 58595 of the Food and Agricultural Code is amended to read:

58595.

(a) ~~All~~ (1) Except as provided in paragraph (2), all California state-owned or state-run institutions, ~~except~~ including public universities and colleges and school districts, that ~~solicit bids for the~~ purchase ~~of an~~ agricultural ~~product~~ products shall ~~accept a bid or price for that~~ only purchase an agricultural product ~~when it~~ that is grown in ~~California before accepting a bid or price for an agricultural product that is grown outside the state, when both of the following are met:~~ the state.

~~(1)The bid or price of the California-grown agricultural product does not exceed by more than 5 percent the lowest bid or price for an agricultural product produced outside the state.~~
~~(2)The quality of the California-grown agricultural product is comparable to that agricultural produce produced outside the state.~~
(b)All California state-owned or state-run institutions, except public universities and colleges and school districts, that intend to accept a bid or price for agricultural products grown outside the state shall accept the bid or price from a vendor that packs or processes these agricultural products in the state before accepting a bid or price from a vendor that packs or processes these agricultural products outside of the state, when both of the following are met:
(1)The bid or price of the agricultural product grown outside the state and packed or processed in the state does not exceed by more than 5 percent the lowest bid or price for the agricultural product packed or processed outside the state.
~~(2)The quality of the agricultural product packed or processed in the state is comparable to those packed or processed outside the state.~~
(c)A school district that solicits bids for the purchase of an agricultural product shall accept a bid or price for that agricultural product when it is grown in California before accepting a bid or price for an agricultural product that is grown outside the state, when both of the following are met:
~~(1)The bid or price of the California-grown agricultural product does not exceed the lowest bid or price for an agricultural product produced outside the state.~~
~~(2)The quality of the California-grown agricultural product is comparable to that agricultural produce produced outside the state.~~
(d)This section shall only apply to a contract to purchase agricultural products for a value that is less than the value of the threshold for supplies and services for which California has obligated itself under the Agreement on Government Procurement of the World Trade Organization.
(2) A California state-owned or state-run institution, including public universities and colleges and school districts, may purchase an agricultural product that is grown outside of the state if the agricultural product is not available from an in-state source or is not grown in the state.
(b) This section does not apply to agricultural products provided to a California state-owned or state-run institution, including public universities and colleges and school districts, by the United States Department of Agriculture through the Foods in Schools program.
(c) The California State Auditor shall investigate violations of this section.
(d) For purposes of this section, “agricultural product” means fruits, tree nuts, peanuts, vegetables, melons, potatoes, meat from livestock, eggs, or dairy products.

SEC. 3.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.