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AB-747 Taxation: nitrogen-based fertilizer application: County of Monterey.(2017-2018)

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Date Published: 09/09/2017 04:00 AM
AB747:v95#DOCUMENT

Amended  IN  Senate  September 08, 2017
Amended  IN  Senate  August 29, 2017
Amended  IN  Assembly  May 15, 2017
Amended  IN  Assembly  April 24, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 747


Introduced by Assembly Member Gloria Caballero

February 15, 2017


An act to add and repeal Section 20175 of the Public Contract Chapter 3.2 (commencing with Section 7287.20) of Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to public contracts. taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 747, as amended, Gloria Caballero. Cities: construction contracts: City of San Diego. Taxation: nitrogen-based fertilizer application: County of Monterey.
Existing law authorizes counties, cities, and other local agencies to impose various taxes and fees in connection with activity or property within those jurisdictions.
This bill would authorize the County of Monterey to impose a special tax or assessment until January 1, 2029, or until a statute creating a statewide program for the purpose of addressing water quality issues associated with groundwater-sourced drinking water is enacted, whichever is earlier, on the application, for any commercial purpose, of fertilizers containing any form or compound of nitrogen, if the board of supervisors of the county adopts an ordinance proposing the tax or assessment and the ordinance proposing the tax or assessment is approved by the voters, subject to applicable voter approval requirements, as specified. The bill would require that the tax or assessment be for the purposes of creating a short-term pilot program to provide replacement drinking water and, if a statute creating the statewide program is enacted, to cover implementation costs associated with the county’s participation in that program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Monterey.

Existing law authorizes a county, until January 1, 2018, with approval of the board of supervisors, to utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the county.

This bill would also similarly authorize the City of San Diego, until January 1, 2023, with the approval of the city council, to utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the city, for projects in excess of $1,000,000, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Diego.

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

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


SECTION 1.

 Chapter 3.2 (commencing with Section 7287.20) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  3.2. County of Monterey Nitrogen-Based Fertilizer Application Tax

7287.20.
 (a) Notwithstanding any other law, in order to address the deleterious effects of nitrate contamination on groundwater sourced drinking water, the County of Monterey may, by ordinance, impose a special tax or assessment until January 1, 2029, on the application, for any commercial purpose, of fertilizers containing any form or compound of nitrogen if both of the following requirements are met:
(1) Upon approval by the Board of Supervisors of the County of Monterey, the ordinance proposing the special tax or assessment is subsequently submitted for review to the Secretary of the Department of Food and Agriculture, who shall determine its consistency with this chapter by no later than 14 calendar days upon receipt of the approved ordinance.
(2) The approved ordinance is submitted to the voters for approval in accordance with Article XIII C of the California Constitution by no later than December 31, 2018.
(b) The purposes of the special tax or assessment shall be as follows:
(1) Creating a short-term pilot program to provide replacement drinking water to certain drinking water systems and to individual wells located in agricultural production areas that are impacted with nitrate levels above the maximum contaminant level. Replacement water may be provided by bottled water or a water treatment device that complies with Article 3 (commencing with Section 116825) of Chapter 5 of Part 12 of Division 104 of the Health and Safety Code.
(2) Covering implementation costs associated with the county’s participation in the statewide program described in subdivision (f), if the statute creating the program is enacted as described in subdivision (f).
(c) The county may use proceeds from the special tax or assessment, not to exceed 10 percent of the total amount collected, for reasonable costs associated with the support, administration, and collection of the special tax or assessment and the implementation of the pilot program.
(d) Proceeds from the special tax or assessment in excess of amounts needed to satisfy the obligations specified in subdivisions (b) and (c) may be used to identify and assess the technological, regulatory, and economic feasibility of alternatives for long-term replacement water for nitrate-impacted drinking water sources in the Salinas basin.
(e) If the ordinance proposing the special tax or assessment is not approved as required in accordance with this chapter, then this chapter shall be repealed as of January 1, 2019.
(f) Notwithstanding subdivision (a), if a statute that is enacted on or after the effective date of this section, and before January 1, 2029, creates a statewide program and funding source for the purpose of addressing water quality issues associated with groundwater-sourced drinking water, then the special tax or assessment authorized by this chapter shall not be collected on or after the effective date of that statute.
(g) After collection of the special tax or assessment concludes, the county may continue to expend the remaining unused proceeds of the special tax or assessment, until the proceeds are exhausted, for either of the following:
(1) The purposes specified pursuant to paragraph (1) of subdivision (b) until the pilot program is dissolved and wound up and all obligations paid in full in accordance with the ordinance.
(2) The purposes described in paragraph (2) of subdivision (b).

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the necessity for the County of Monterey to have the statutory authority to place before its voters a local initiative for the purpose of creating the necessary infrastructure and initial funding for a temporary clean drinking water distribution program at the county level to begin delivering safe water to individual Salinas Valley water users whose drinking water contains high levels of nitrates.
SECTION 1.Section 20175 is added to the Public Contract Code, to read:
20175.

(a)Notwithstanding any other law, the City of San Diego, with approval of the city council, may utilize construction manager at-risk construction contracts for the erection, construction, alteration, repair, or improvement of any building owned or leased by the city. A construction manager at-risk construction contract may be used only for projects in the city in excess of one million dollars ($1,000,000) and may be awarded using either the lowest responsible bidder or best value method to a construction manager at-risk entity that possesses or that obtains sufficient bonding to cover the contract amount for construction services and risk and liability insurance as may be required by the city. Any payment or performance bond written for the purposes of this section shall be written using a bond form developed by the city.

(b)For purposes of this section, the following definitions apply:

(1)“Best value” means a value determined by objective criteria related to the experience of the entity and project personnel, project plan, financial strength of the entity, safety record of the entity, and price.

(2)“Construction manager at-risk contract” means one or a successive combination of competitively procured contracts entered into by the City of San Diego with an individual, partnership, joint venture, corporation, or other recognized legal entity, that is appropriately licensed in this state, including holding a contractor’s license issued by the Contractors’ State License Board, and that guarantees the cost of a project and furnishes construction management services, including, but not limited to, preparation and coordination of bid packages, scheduling, cost control, value engineering, evaluation, preconstruction services, and construction administration.

(c)(1)A construction manager at-risk entity shall not be prequalified or shortlisted or awarded a contract unless the entity provides an enforceable commitment to the City of San Diego that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.

(2)This subdivision shall not apply if any of the following conditions are met:

(A)The City of San Diego has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce, and the entity agrees to be bound by that project labor agreement.

(B)The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the City of San Diego before January 1, 2018.

(C)The City of San Diego has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.

(3)For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500.

(d)Subcontractors that were not listed by a construction manager at-risk entity as partners, general partners, or association members in a partnership, limited partnership, or association in the entity’s construction manager at-risk bid submission shall be awarded by the construction manager at-risk entity in accordance with the process set forth by the City of San Diego. All subcontractors bidding on contracts pursuant to this section shall be afforded the protections contained in Chapter 4 (commencing with Section 4100) of Part 1. The construction manager at-risk entity shall do both of the following:

(1)Provide public notice of the availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the City of San Diego.

(2)Provide a fixed date and time on which the subcontracted work will be awarded in accordance with the procedure established pursuant to this section.

(e)If the City of San Diego elects to proceed under this section and uses a construction manager at-risk contract for a building project, it shall make a copy of the contract available for public inspection on its Internet Web site and notify the appropriate policy committees of the Legislature with instructions on finding and accessing the stored contract.

(f)(1)If the City of San Diego elects to award a project pursuant to this section, retention proceeds withheld by the city from the construction manager at-risk entity shall not exceed 5 percent if a performance and payment bond issued by an admitted surety insurer is required in the solicitation of bids.

(2)In a contract between the construction manager at-risk entity and any subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the City of San Diego and the construction manager at-risk entity. If the construction manager at-risk entity provides written notice to any subcontractor that is not a member of the construction manager at-risk entity, before or at the time the bid is requested, that a bond may be required, and the subcontractor subsequently is unable or refuses to furnish a bond to the construction manager at-risk entity, then the construction manager at-risk entity may withhold retention proceeds in excess of the percentage specified in the contract between the city and the construction manager at-risk entity from any payment made by the construction manager at-risk entity to the subcontractor.

(g)If the City of San Diego elects to award a project pursuant to this section, the contract between the city and construction manager at-risk entity shall be subject to the provisions of subdivision (b) of Section 2782 of the Civil Code. Any contract between the construction manager at-risk entity and a contractor or subcontractor shall be subject to Section 2782.05 of the Civil Code.

(h)The City of San Diego may award separate contracts to the construction manager at-risk entity for preconstruction services and construction services, or award a single contract for preconstruction services and construction services with an intervening city approval of the guaranteed maximum price.

(i)This section shall remain in effect only until January 1, 2023, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2023, deletes or extends that date.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions in the City of San Diego that make it necessary to grant the city the authority to utilize the contracting methods described in this act.