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AB-2166 California Farm Bill: agricultural technology.(2017-2018)

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Date Published: 05/09/2018 09:00 PM
AB2166:v94#DOCUMENT

Amended  IN  Assembly  May 09, 2018
Amended  IN  Assembly  April 26, 2018
Amended  IN  Assembly  April 16, 2018
Amended  IN  Assembly  April 02, 2018
Amended  IN  Assembly  March 14, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2166

Introduced by Assembly Member Caballero
(Coauthors: Assembly Members Aguiar-Curry, Gallagher, Eduardo Garcia, Gray, Levine, and Salas)

February 12, 2018

An act to add Section 78017.5 to the Education Code, to amend Section 2272 of, to add Sections 25.3, 437, 823, and 825 to, and to add Division 23.5 (commencing with Section 80500) to, the Food and Agricultural Code, to add and repeal Sections 17053.89 and 23608.5 of the Revenue and Taxation Code, and to add Section 301.5 to the Unemployment Insurance Code, relating to agriculture, and making an appropriation therefor. agriculture.


LEGISLATIVE COUNSEL'S DIGEST


AB 2166, as amended, Caballero. California Farm Bill: agricultural technology.
(1) Existing law establishes the Department of Food and Agriculture and requires it to promote and protect the agricultural industry of the state.
This bill would establish the Agricultural Growth Council, with a prescribed membership of specified state agencies and public members, to plan for regulatory alignments that would aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department. The bill would require the council, if the council determines that it is impossible for a person, and similarly situated persons, to comply with one or more regulations due to conflicting regulatory requirements, to suspend the application of one or more of the conflicting requirements to those persons as necessary to resolve the conflict. The bill would provide for the continued suspension of a requirement or requirements as to those persons until all applicable agencies have resolved the original conflict and provided clear direction on how to achieve compliance with the previously conflicting requirements.
The bill would require the department to create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements, and guidance, for operating and managing a farm.
The bill would require the department to encourage community college districts, California state universities, the University of California, and state and county fairgrounds to establish and maintain smart farms, as described by the bill, on the respective campuses or fairgrounds to provide regional agricultural businesses the opportunity to show up-to-date agricultural technology, as defined by the bill, in real world practice.
(2) Existing law provides for a department of agriculture in each county and for the appointment of a county agricultural commissioner. The county agricultural commissioner has specified duties, including making an annual report to the Secretary of Food and Agriculture on the condition of agriculture in his or her county, attending the annual meeting of the California Agricultural Commissioners Association, and consulting with staff members of various federal departments.
This bill would require the county agricultural commissioner, in completing the annual report, to also conduct a survey of Internet accessibility on farms and in rural communities in his or her county to identify gaps in Internet accessibility on farms that create hurdles to the adoption of agricultural technology. By creating additional duties on local officials, this bill would impose a state-mandated local program.
(3) Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, and the California State University as 2 of the segments of public postsecondary education in this state. Existing law, the Student Transfer Achievement Reform Act, requires community colleges to create associate degrees for transfer that meet the requirements of approved transfer model curricula, which are developed and vetted through a process known as the Course Identification Numbering System process. Existing law requires the California State University to guarantee, to a student holding a transfer model curriculum-aligned associate degree for transfer, admission to a corresponding program or major and concentration, as specified, of the California State University.
This bill would require the Board of Governors of the California Community Colleges to direct the statewide Academic Senate for California Community Colleges to engage in the Course Identification Numbering System process to explore the feasibility of developing, within established transfer model curricula for agricultural disciplines, a model curriculum in the subdiscipline of Agricultural Business and Technology that focuses on agricultural technology.
(4) The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, in an amount, as specified, for agricultural technology deployed for at least 3 consecutive months during the taxable year. The bill would establish the Agriculture Technology Innovation Institute within the Department of Food and Agriculture Agriculture, or as a part of another public entity that may otherwise be designated by an interagency agreement between the department and the public entity, to, among other things, administer these credits.
(5) Existing law creates the Employment Development Department within the Labor and Workforce Development Agency, which is vested with the duties, purposes, responsibilities, and jurisdiction regarding job creation activities.
This bill would require express the intent of the Legislature, Legislature to include in the annual Budget Act, to appropriate Act an appropriation of moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.
(6) This bill would appropriate express the intent of the Legislature to include in the Budget Act of 2019, or annually in the Budget Act, as provided, appropriations in specified amounts from the General Fund for specified purposes relating to agriculture.
(7) 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.
Vote: TWO_THIRDSMAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 This bill shall be known, and may be cited, as the California Farm Bill.

SEC. 2.

 Section 78017.5 is added to the Education Code, to read:

78017.5.
 (a) The Board of Governors of the California Community Colleges shall direct the statewide Academic Senate for California Community Colleges to engage in the Course Identification Numbering System process to explore the feasibility of developing, within established transfer model curricula for agricultural disciplines, a model curriculum in the subdiscipline of Agriculture Business and Technology that focuses on agricultural technology.
(b) For purposes of this section, “agricultural technology” has the same meaning as in Section 25.3 of the Food and Agricultural Code.

SEC. 3.

 Section 25.3 is added to the Food and Agricultural Code, to read:

25.3.
 “Agricultural technology” means technology that improves does any of the following:
(a) Improves the efficiency of water use, energy use, greenhouse gases, fertilizer use, water, energy, fertilizer, or pesticide use, or that automates use.
(b) Increases the effectiveness of greenhouse gas reduction or resource sustainability practices.
(c) Automates a part of the farming process to make farmworkers farm labor more efficient.

SEC. 4.

 Section 437 is added to the Food and Agricultural Code, to read:

437.
 The department shall create a user-friendly navigational link on its Internet Web site that provides farmers and other members of the agricultural industry comprehensive information about regulatory requirements, and guidance, for operating and managing a farm.

SEC. 5.

 Section 823 is added to the Food and Agricultural Code, to read:

823.
 (a) The Agriculture Technology Innovation Institute is hereby established within the department department, or as a part of another public entity that may otherwise be designated by an interagency agreement between the department and the public entity, to serve as a clearinghouse for vetting, commercializing, and driving the adoption of agriculture agricultural technologies that qualify for a credit under Sections 17053.89 and 23608.5 of the Revenue and Taxation Code and that assist the agriculture industry increase yields, improve operating margins, and meet regulatory standards.
(b) The institute shall do all of the following:
(1) Promote the use of agricultural technology by educating farmers about available agricultural technologies and its advantages.
(2) Encourage the adoption of agricultural activities that qualify for a credit under Section 17053.89 or 23608.5 of the Revenue and Taxation Code.
(3) Administer the credit described in Sections 17053.89 and 23608.5 of the Revenue and Taxation Code.

SEC. 6.

 Section 825 is added to the Food and Agricultural Code, to read:

825.
 (a) The department shall encourage community college districts, California state universities, University of California, and state and county fairgrounds to establish and maintain smart farms on their campuses or fairgrounds that provide regional agriculture businesses the opportunity to show up-to-date agricultural technology in real world practice.
(b) A smart farm shall be funded by its operator.
(c) The Legislature finds that a smart farm serves the dual purpose of enabling adoption of up-to-date agricultural technology and creating a career pathway for jobs in the agriculture sector with a focus on technology. The Legislature also finds that a smart farm would also provide the agricultural industry with the opportunity to experience applied agriculture technology research firsthand.

SEC. 7.

 Section 2272 of the Food and Agricultural Code is amended to read:

2272.
 (a) The commissioner shall make an annual report to the secretary on the condition of agriculture in his or her county and on what is being done to eradicate, control, or manage pests, and actions relating to the exclusion of pests or quarantine against pests. The commissioner may include in the annual report information relating to organic farming methods, biotechnology, integrated pest management, and biological control activities in the county. The commissioner shall also furnish from time to time to the secretary any other information the secretary may require.
(b) In completing the annual report described in subdivision (a), the commissioner shall also conduct a survey of Internet accessibility on farms and in rural communities in his or her county. The purpose of this survey shall be to identify gaps in Internet accessibility on farms, creating a hurdle to the adoption of agricultural technology.

SEC. 8.

 Division 23.5 (commencing with Section 80500) is added to the Food and Agricultural Code, to read:

DIVISION 23.5. Agricultural Growth Council

80500.
 The Agricultural Growth Council is hereby established in the state government and it shall consist of the Secretary of Food and Agriculture, the Secretary of the Natural Resources Agency, the Secretary of Environmental Protection, the Director of Water Resources, the Director of the State Water Resources Control Board, the Chair of the Air Resources Board, the Director of Pesticide Regulation, one member of the public appointed by the Speaker of the Assembly, one member of the public appointed by the Senate Committee on Rules, and one member of the public appointed by the Governor. The public members shall have a background in agriculture. The purpose of the council shall be to plan for regulatory alignments that aid grower compliance, reduce costs to the agriculture industry, and protect the environment and to make recommendations for regulatory alignments to the proper agency or department.

80501.
 The members of the council shall elect a chair of the council every two years.

80502.
 A meeting of the council shall be subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), except that, for purposes of this section, “meeting” shall not include a meeting at which:
(a) Council members are meeting as members of the Governor’s cabinet.
(b) Council staff and member agency staff are meeting to discuss, but not take final action on, any of the following:
(1) State agency coordination to improve regulatory compliance efficiency.
(2) Preliminary policy recommendations and investment strategies to the Governor, the Legislature, and appropriate state agencies to encourage the streamlining of agricultural industry regulation compliance.

80503.
 (a) If the council determines that it is impossible for a person, and similarly situated persons, to comply with one or more regulations due to conflicting regulatory requirements, the council shall suspend the application of one or more of the conflicting requirements to those persons as necessary to resolve the conflict. The council, in consultation with the applicable enforcing agencies, shall determine which requirement or requirements to suspend after consideration of the public health and safety implications of any suspension and the effect of a suspension on the overall regulatory scheme of each enforcing agency.
(b) Upon the suspension of a requirement pursuant to subdivision (a), no agency may initiate an action to enforce the requirement until all applicable agencies have resolved the original conflict and provided clear direction on how to achieve compliance with the previously conflicting requirements.

SEC. 9.

 Section 17053.89 is added to the Revenue and Taxation Code, to read:

17053.89.
 (a) (1)For each taxable year beginning on or after January 1, 2020, and before January 1, 2025, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount for each acre within the state on which agricultural technology is deployed during the taxable year for at least three consecutive months as follows:

(A)

(1) For tier 1 farms, which are farms less than 100 acres in size, fifty dollars ($50). ($50), up to a total credit amount of four thousand nine hundred fifty dollars ($4,950) per taxpayer per taxable year.

(B)

(2) For tier 2 farms, which are farms at least 100 acres but less than 500 acres in size, forty dollars ($40). ($40), up to a total credit amount of nineteen thousand nine hundred sixty dollars ($19,960) per taxpayer per taxable year.

(C)

(3) For tier 3 farms, which are farms at least 500 acres but less than 1,000 acres in size, thirty dollars ($30). ($30), up to a total credit amount of twenty-nine thousand nine hundred seventy dollars ($29,970) per taxpayer per taxable year.

(D)

(4) For tier 4 farms, which are farms at least 1,000 acres but less than 2,000 acres in size, twenty dollars ($20). ($20), up to a total credit amount of thirty-nine thousand nine hundred eighty dollars ($39,980) per taxpayer per taxable year.

(E)

(5) For tier 5 farms, which are farms of 2,000 or more acres in size, ten dollars ($10). ($10), up to a total credit amount of fifty thousand dollars ($50,000) per taxpayer per taxable year.

(2)The amount of credit for a tier 5 farm shall not exceed fifty thousand dollars ($50,000) per taxpayer per taxable year.

(b) If a credit allowed by this section is claimed by a taxpayer based on expenses paid or incurred as described in paragraph (2) of subdivision (d), any deduction otherwise allowed under this part based on those same expenses shall be reduced by the amount of the credit claimed.

(b)

(c) For purposes of this section, the following definitions apply:
(1) “Agricultural technology” has the same meaning as in Section 25.3 of the Food and Agricultural Code.
(2) “Institute” means the Agriculture Technology Innovation Institute within the Department of Food and Agriculture, created pursuant to Section 823 of the Food and Agricultural Code.

(c)

(d) The institute shall provide a certificate to a taxpayer who confirms all of the following:
(1) The deployment of agricultural technology for at least three consecutive months.
(2) Paying or incurring expenses, during the 12 months immediately preceding the taxpayer’s application for certification, for the agricultural technology described in paragraph (1).
(3) One or both of the following:
(A) An improvement of efficiency in water use, energy use, greenhouse gases, fertilizer use, water, energy, fertilizer, or pesticide use within use, or an increase in the effectiveness of greenhouse gas reduction or resource sustainability practices, in the business operations of the taxpayer, resulting from the deployment of the agricultural technology described in paragraph (1), demonstrated through metering, bill statements, or business logs or records.
(B) An increase in farmworker farm labor efficiency demonstrated by subtracting the quotient of the crop yield divided by hours of work performed before the agricultural technology described in paragraph (1) was deployed from the quotient of the crop yield divided by hours of work performed after that agricultural technology was deployed.
(e) (1) A certificate provided pursuant to subdivision (d) shall include all of the following:
(A) The taxpayer’s name.
(B) The address of the farm on which the agricultural technology has been deployed.
(C) The taxpayer’s social security number or taxpayer identification number.
(D) The amount of the credit claimed.
(E) The date of certification.
(2) The institute shall annually provide to the Franchise Tax Board, by a date determined by the Franchise Tax Board, a copy of each certificate provided by the institute pursuant to this section for the preceding calendar year.

(d)

(f) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding four years if necessary, until the credit is exhausted.

(e)

(g) It is the intent of the Legislature to comply with Section 41.

(f)

(h) This section shall remain in effect only until December 31, 2031, and as of that date is repealed.

SEC. 10.

 Section 23608.5 is added to the Revenue and Taxation Code, to read:

23608.5.
 (a) (1)For each taxable year beginning on or after January 1, 2020, and before January 1, 2025, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount for each acre within the state on which agricultural technology is deployed during the taxable year for at least three consecutive months as follows:

(A)

(1) For tier 1 farms, which are farms less than 100 acres in size, fifty dollars ($50). ($50), up to a total credit amount of four thousand nine hundred fifty dollars ($4,950) per taxpayer per taxable year.

(B)

(2) For tier 2 farms, which are farms at least 100 acres but less than 500 acres in size, forty dollars ($40). ($40), up to a total credit amount of nineteen thousand nine hundred sixty dollars ($19,960) per taxpayer per taxable year.

(C)

(3) For tier 3 farms, which are farms at least 500 acres but less than 1,000 acres in size, thirty dollars ($30). ($30), up to a total credit amount of twenty-nine thousand nine hundred seventy dollars ($29,970) per taxpayer per taxable year.

(D)

(4) For tier 4 farms, which are farms at least 1,000 acres but less than 2,000 acres in size, twenty dollars ($20). ($20), up to a total credit amount of thirty-nine thousand nine hundred eighty dollars ($39,980) per taxpayer per taxable year.

(E)

(5) For tier 5 farms, which are farms of 2,000 or more acres in size, ten dollars ($10). ($10), up to a total credit amount of fifty thousand dollars ($50,000) per taxpayer per taxable year.

(2)The amount of credit for a tier 5 farm shall not exceed fifty thousand dollars ($50,000) per taxpayer per taxable year.

(b) If a credit allowed by this section is claimed by a taxpayer based on expenses paid or incurred as described in paragraph (2) of subdivision (d), any deduction otherwise allowed under this part based on those same expenses shall be reduced by the amount of the credit claimed.

(b)

(c) For purposes of this section, the following definitions apply:
(1) “Agricultural technology” has the same meaning as in Section 25.3 of the Food and Agricultural Code.
(2) “Institute” means the Agriculture Technology Innovation Institute within the Department of Food and Agriculture, created pursuant to Section 823 of the Food and Agricultural Code.

(c)

(d) The institute shall provide a certificate to a taxpayer who confirms all of the following:
(1) The deployment of agricultural technology for at least three consecutive months.
(2) Paying or incurring expenses, during the 12 months immediately preceding the taxpayer’s application for certification, for the agricultural technology described in paragraph (1).
(3) One or both of the following:
(A) An improvement of efficiency in water use, energy use, greenhouse gases, fertilizer use, water, energy, fertilizer, or pesticide use use, or an increase in the effectiveness of greenhouse gas reduction or resource sustainability practices, in the business operations of the taxpayer, resulting from the deployment of the agricultural technology described in paragraph (1), demonstrated through metering, bill statements, or business logs or records.
(B) An increase in farmworker farm labor efficiency demonstrated by subtracting the quotient of the crop yield divided by hours of work performed before the agricultural technology described in paragraph (1) was deployed from the quotient of the crop yield divided by hours of work performed after that agricultural technology was deployed.
(e) (1) A certificate provided pursuant to subdivision (d) shall include all of the following:
(A) The taxpayer’s name.
(B) The address of the farm on which the agricultural technology has been deployed.
(C) The taxpayer’s social security number or taxpayer identification number.
(D) The amount of the credit claimed.
(E) The date of certification.
(2) The institute shall annually provide to the Franchise Tax Board, by a date determined by the Franchise Tax Board, a copy of each certificate provided by the institute pursuant to this section for the preceding calendar year.

(d)

(f) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding four years if necessary, until the credit is exhausted.

(e)

(g) It is the intent of the Legislature to comply with Section 41.

(f)

(h) This section shall remain in effect only until December 31, 2031, and as of that date is repealed.

SEC. 11.

 Section 301.5 is added to the Unemployment Insurance Code, to read:

301.5.
 The It is the intent of the Legislature shall, to include in the annual Budget Act, appropriate Act an appropriation of moneys to the Labor Market Information Division within the Employment Development Department for the purpose of performing agricultural industry statistical analysis and examining the economic impact and employment effect the agricultural industry has on the state.

SEC. 12.

 The It is the intent of the Legislature to include in the Budget Act of 2019, or, in the case of subdivision (f), to annually include in the Budget Act, appropriations in the following amounts are hereby appropriated from the General Fund, as follows: Fund:
(a) One million five hundred thousand dollars ($1,500,000) to the Department of Food and Agriculture for purposes of the Buy California Program, as described in Section 58750 of the Food and Agricultural Code, for the promotion of all California-grown products, including specialty crops, as defined in Section 3 of the federal Specialty Crops Competitiveness Act of 2004 (7 U.S.C. Sec. 1621 note), and any subsequent amendments to that section, and nonspecialty crops.
(b) Forty-five million dollars ($45,000,000) to the Department of Food and Agriculture for purposes of the Statewide Plant Pest Prevention and Management Program.
(c) One million five hundred thousand dollars ($1,500,000) to the Department of Food and Agriculture for purposes of implementing Section 437 of the Food and Agricultural Code.
(d) Twenty million dollars ($20,000,000) to the Department of Food and Agriculture for purposes of implementing Section 823 of the Food and Agricultural Code.
(e) Five hundred thousand dollars ($500,000) to the Department of Food and Agriculture for the purposes of supporting the Agricultural Growth Council created pursuant to Section 80500 of the Food and Agricultural Code and its activities.
(f) Notwithstanding Section 13340 of the Government Code, ten million dollars ($10,000,000) annually to the University of California, Division of Agriculture and Natural Resources, for applied agriculture research.
(g) (1) One hundred fifty thousand dollars ($150,000) to Olinga Learning, a nonprofit organization, for purposes of its Wings of Knowledge Initiative and the program’s 2019 and 2020 cohort. On Subject to an appropriation pursuant to this subdivision, the following requirements shall apply:
(A) On or before July 1, 2021, Olinga Learning shall report to the Legislature on the program. The
(B) The Legislature shall evaluate whether the program is achieving its goals of providing students with an agricultural technology career pathway either directly into the field or into postsecondary education and whether similar programs should be implemented throughout the state.
(2) The Legislature finds and declares all of the following:
(A) For sustainable growth, rural communities need to be able to keep their youth employed at home, or to have those youth return to their communities after attending college.
(B) Rural communities benefit when their youth have adequate jobs after high school that provide living wages without college degrees.
(C) Rural communities benefit when their youth return home after acquiring advanced educational degrees.
(D) The Wings of Knowledge Initiative, and similarly modeled programs, would provide a public benefit by introducing elementary and secondary public school pupils to career pathways in advanced agricultural technologies and computer sciences.
(E) The Wings of Knowledge Initiative provides pathways for its public school pupils to be prepared to stay in their rural communities by encouraging new types of agricultural careers.
(F) The Wings of Knowledge Initiative provides pathways for students from rural areas who attend a postsecondary educational facility to return to their communities after pursuing postsecondary education in agricultural management and technology.
(G) The An allocation made under pursuant to this subdivision would enable the Legislature to explore developing educational models similar to the Wings of Knowledge Initiative throughout the state, thereby helping the development and sustainability of the state’s rural communities and agricultural industry.

SEC. 13.

 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.