Bill Text: CA AB217 | 2019-2020 | Regular Session | Amended
Bill Title: Income taxation: credits: exclusions: federal conformity.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Failed) 2020-02-03 - Died on inactive file. [AB217 Detail]
Download: California-2019-AB217-Amended.html
Amended
IN
Assembly
June 13, 2019 |
Amended
IN
Assembly
May 21, 2019 |
Amended
IN
Assembly
May 01, 2019 |
Amended
IN
Assembly
March 28, 2019 |
Amended
IN
Assembly
March 19, 2019 |
Assembly Bill | No. 217 |
Introduced by Assembly Member (Coauthor: Senator |
January 16, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
(1)Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health. Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.
This bill would enact the Safe Drinking Water for All Act and would establish the Safe and Affordable Drinking Water Fund in the State Treasury and would provide that moneys in the fund are continuously appropriated to the board to provide a source of funding to secure access to safe drinking water for all Californians, while also ensuring the long-term sustainability of drinking water service and
infrastructure. The bill would authorize the board to provide for the deposit into the fund of federal contributions, voluntary contributions, gifts, grants, bequests, and settlements from parties responsible for contamination of drinking water supplies, and to contribute funding available from other sources related to water quality. The bill would require the board to expend moneys in the fund for grants, loans, contracts, or services to assist eligible applicants with certain projects. The bill would authorize the board to provide money from the fund to the Attorney General for the purpose of litigation brought against parties responsible for contamination of drinking water supplies to recover the costs of remediation, replacement drinking water supplies, or other board activities that restore safe drinking water to communities and would require all funds recovered through litigation to be deposited into the fund.
The bill would require the board, working with a multistakeholder advisory group, to adopt a fund implementation plan and policy handbook with priorities and guidelines for expenditures of the fund. The bill would require the board annually to prepare and make available a report of expenditures from the fund. The bill would require the board to adopt annually, after a public hearing, an assessment of funding need that estimates the anticipated funding needed for the next fiscal year to achieve the purposes of the fund. By creating a new continuously appropriated fund, this bill would make an appropriation.
(2)Existing law, the Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill would establish a statewide safe and affordable drinking water system charge in the amount of $0.50 per service connection per month on all retail water systems. The bill would require each retail water system to remit to the board the amount of the system charge for their retail water system on July 1, 2020, and by July 1 annually thereafter. The bill would require these
system charges to be deposited into the fund.
The bill would require the board, in consultation with the California Department of Tax and Fee Administration, to administer and collect the system charge in accordance with the Fee Collection Procedures Law. The bill would require the board to
annually allocate up to 20% of the annual revenues originating in each of the Division of Drinking Water regions from the system charge to the region from which the revenues originate to each Division of Drinking Water regional office or other qualified entity appointed by the board for specified activities. By expanding the application of the Fee Collection Procedures Law that imposes criminal penalties for various acts, this bill would impose a state-mandated local program.
(3)Existing law requires every person who manufactures or distributes fertilizing materials to be licensed by the Secretary of Food and Agriculture and to pay a license fee that does not exceed $300. Existing law requires every lot, parcel, or package of fertilizing material to have a label attached to it, as required by the secretary. Existing law requires a licensee who sells or distributes bulk fertilizing materials to pay to the secretary an assessment not to exceed $0.002 per dollar of sales for all sales of fertilizing materials, as prescribed, for the purposes of the administration and enforcement of provisions relating to fertilizing materials. In addition to that assessment, existing law authorizes the secretary to impose an
assessment in an amount not to exceed $0.001 per dollar of sales for all sales of fertilizing materials for the purpose of providing funding for research and education regarding the use of fertilizing materials. Existing law specifies that a violation of the fertilizing material laws or the regulations adopted pursuant to those laws is a misdemeanor.
This bill, during the 2020–34 calendar years, would require a licensee to pay to the secretary a fertilizer safe drinking water fee of $0.01 per dollar of sale for all sales of fertilizing materials, as defined,
intended for noncommercial use and $0.006 per dollar of sale for all sales of packaged fertilizing materials intended for noncommercial use. The bill, beginning in the 2035 calendar year, would reduce the fee to $0.004 per dollar of sale intended for noncommercial use and $0.002 per dollar of sale of packaged materials intended for noncommercial use. The bill, on and after January 1, 2035, would authorize the secretary to adjust the fee as necessary to meet but not exceed 70% of the anticipated funding need for nitrate in the most recent assessment of funding need adopted by the board or the sum of $7,000,000, whichever is less, and would authorize the secretary to adopt regulations relating to the administration and enforcement of these provisions.
The bill would require the secretary to deposit these moneys into the Safe and Affordable Drinking Water Fund. Because a violation of these provisions or regulations adopted pursuant to these provisions would be a crime, the bill would impose a state-mandated local program.
(4)Existing law regulates the production, handling, and marketing of milk and dairy products and requires every milk handler subject to that regulatory scheme to pay specified assessments and fees to the Secretary of Food and Agriculture to cover the costs of regulating milk. Existing law governing milk defines “handler” as any person who,
either directly or indirectly, receives, purchases, or otherwise acquires ownership, possession, or control of market milk from a producer, a producer-handler, or another handler for the purpose of manufacture, processing, sale, or other handling. Existing law defines “market milk” as milk conforming to specified standards and “manufacturing milk” as milk that does not conform to the requirements of market milk. Existing law provides that a violation of that regulatory scheme or a regulation adopted pursuant to that regulatory scheme is a misdemeanor.
This bill would require, beginning January 1, 2022, each handler to deduct from payments made to producers for market and manufacturing milk the sum of $0.020325 per hundredweight of milk as a dairy
safe drinking water fee. The bill would require the secretary to deposit these moneys into the Safe and Affordable Drinking Water Fund. The bill would authorize the secretary to take specified enforcement actions and would require the secretary to adopt regulations for the administration and enforcement of these provisions. Because a violation of these provisions or regulations adopted pursuant to these provisions would be a crime, the bill would impose a state-mandated local program.
(5)Existing law requires the Secretary of Food and
Agriculture to enforce provisions governing livestock operations. Existing law generally provides that a violation of a provision of the Food and Agricultural Code is a misdemeanor.
This bill would require each producer owning a nondairy confined animal facility, as defined, beginning the 2021 calendar year to pay annually to the secretary a safe drinking water fee of $1,000 for the first facility and $750 per each facility thereafter owned by the same producer, not to exceed $12,000. The bill would require these moneys to be deposited into the Safe and Affordable Drinking Water Fund. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program.
(6)Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, a bond act approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds to finance a water quality, supply, and infrastructure improvement program, as specified. Under the bond act, $520,000,000 is available, upon appropriation by the Legislature, for expenditures, grants, and loans for projects that improve water quality or help provide clean, safe, and reliable drinking water to all Californians. Of these funds, the bond act makes $260,000,000 available for grants and loans for public water system infrastructure improvements and related actions to meet safe drinking water standards, ensure affordable drinking water, or both, and requires that priority be given to projects that provide treatment for contamination or access to an alternate drinking water source or sources for small community water systems or state small water
systems in disadvantaged communities whose drinking water source is impaired, as specified.
This bill, for purposes of an award of the $260,000,000 available from the bond act, would provide that priority is a preference and not a necessary element of funding.
(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 no reimbursement is required by this act for a specified reason.
(8)This bill would declare that it is to take effect immediately as an urgency statute.
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known and may be cited as the Loophole Closure and Small Business and Working Families Tax Relief Act of 2019.SEC. 2.
Section 17052 of the Revenue and Taxation Code is amended to read:17052.
(a) (1) For each taxable year beginning on or after January 1, 2015, there shall be allowed against the “net tax,” as defined by Section 17039, an earned income tax credit in an amount equal to an amount determined in accordance with Section 32 of the Internal Revenue Code, relating to earned income, as applicable for federal income tax purposes for the taxable year, except as otherwise provided in this section.In the case of an eligible individual
with: | The credit percentage is: | The phaseout percentage is: |
No qualifying children | 7.65% | 7.65% |
1 qualifying child | 34% | 34% |
2 qualifying children | 40% | 40% |
3 or more qualifying children | 45% | 45% |
In the case of an eligible individual with: | The earned income amount is: | The phaseout amount is: |
No qualifying children | $3,290 | $3,290 |
1 qualifying child | $4,940 | $4,940 |
2 or more qualifying children | $6,935 | $6,935 |
In the case of an eligible individual with: | The credit percentage is: | The phaseout percentage is: |
No
qualifying children | 2.20% | 1.22% |
1 qualifying child | 3.10% | 2.29% |
2 qualifying children | 2.13% | 3.45% |
3 or more qualifying children | 2.12% | 3.49% |
In the case of an eligible individual with: | The earned income amount is: | The phaseout amount is: |
No qualifying children | $5,354 | $5,354 |
1 qualifying child | $9,484 | $9,484 |
2 qualifying children | $13,794 | $13,794 |
3 or more qualifying children | $13,875 | $13,875 |
In the case of an eligible individual with: | The credit percentage is: | The phaseout percentage is: |
No qualifying children | 2.20% | 1.08% |
1 qualifying child | 3.10% | 2.00% |
2 qualifying children | 2.13% | 2.82% |
3 or more qualifying children | 2.12% | 2.85% |
In the case of an eligible individual with: | The earned income amount is: | The phaseout amount is: |
No qualifying children | $5,520 | $5,520 |
1 qualifying child | $9,778 | $9,778 |
2 qualifying children | $14,222 | $14,222 |
3 or more qualifying children | $14,305 | $14,305 |
(3)For taxable years beginning on or after January 1, 2019, the amounts in paragraphs (1) and (2) shall be recomputed annually in the same manner as the recomputation of income tax brackets under subdivision (h) of Section 17041.
In the case of an eligible individual with: | The credit percentage is: | The phaseout percentage is: |
No qualifying children | 5.43% | 0.92% |
1 qualifying child | 6.33% | 2.88% |
2 qualifying children | 4.20% | 3.75% |
3 or more qualifying children | 4.15% | 3.78% |
In the case of an eligible individual with: | The earned income amount is: | The phaseout amount is: |
No qualifying children | $4,334 | $4,334 |
1 qualifying child | $9,381 | $9,381 |
2 qualifying children | $14,137 | $14,137 |
3 or more qualifying children | $14,302 | $14,302 |
SEC. 3.
Section 17052.1 is added to the Revenue and Taxation Code, to read:17052.1.
(a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed against the “net tax,” as defined by Section 17039, a young child tax credit to a qualified taxpayer, in an amount as determined under paragraph (2).SEC. 4.
Section 17140 of the Revenue and Taxation Code is amended to read:17140.
(a) For purposes of this section, the following terms have the following meanings as provided in the Golden State Scholarshare Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of Part 42 of the Education Code):SEC. 5.
Section 17140.3 of the Revenue and Taxation Code is amended to read:17140.3.
Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.SEC. 6.
Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4.
For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.SEC. 7.
Section 17144.8 is added to the Revenue and Taxation Code, to read:17144.8.
(a) Section 108(f)(5) of the Internal Revenue Code, relating to discharges on account of death or disability, as added by Section 11031(a) of the federal Tax Cuts and Jobs Act (Public Law 115-97), shall apply except as otherwise provided.SEC. 8.
Section 17201.2 is added to the Revenue and Taxation Code, to read:17201.2.
(a) The amendments made by Section 13531(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to add Section 162(r) to the Internal Revenue Code, relating to the disallowance of FDIC premiums paid by certain large financial institutions, shall apply, except as otherwise provided.SEC. 9.
Section 17271 is added to the Revenue and Taxation Code, to read:17271.
(a) The amendments made by Section 13601(a), (b), (c), and (d) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 162(m) of the Internal Revenue Code, relating to certain excessive employee remuneration, shall apply, except as otherwise provided.SEC. 10.
Section 17276 of the Revenue and Taxation Code is amended to read:17276.
Except as provided in Sections 17276.1, 17276.2, 17276.4, 17276.5, 17276.6, and 17276.7, the deduction provided by Section 172 of the Internal Revenue Code, relating to net operating loss deduction, shall be modified as follows:(3)Notwithstanding paragraph (2), Section 172(b)(1)(B) of the Internal Revenue Code, relating to special rules for REITs, and Section 172(b)(1)(E) of the Internal Revenue Code, relating to excess interest loss, and Section 172(h) of the Internal Revenue Code, relating to corporate equity reduction interest losses, apply as provided.
(4)
SEC. 11.
Section 17276.21 of the Revenue and Taxation Code is amended to read:17276.21.
(a) Notwithstanding Sections 17276, 17276.1, 17276.2, 17276.4, 17276.5, 17276.6, and 17276.7 of this code and Section 172 of the Internal Revenue Code, no net operating loss deduction shall be allowed for any taxable year beginning on or after January 1, 2008, and before January 1, 2012.SEC. 12.
Section 17276.22 of the Revenue and Taxation Code is amended to read:17276.22.
Notwithstanding Section 17276.1, 17276.2, 17276.4, 17276.5, 17276.6, or 17276.7 to the contrary, a net operating loss attributable to a taxable year beginning on or after January 1, 2008, shall be a net operating carryover to each of the 20 taxable years following the year of the loss, and a net operating loss attributable to a taxable year beginning on or after January 1, 2013, and before January 1, 2019, shall also be a net operating loss carryback to each of the two taxable years preceding the taxable year of loss.SEC. 13.
Section 17560.5 of the Revenue and Taxation Code is amended to read:17560.5.
(a) Section 461(j) of the Internal Revenue Code, relating to limitation on excess farm losses of certain taxpayers, shall not apply.SEC. 14.
Section 17563.51 is added to the Revenue and Taxation Code, to read:17563.51.
(a) For taxable years beginning on or after January 1, 2019, the amendments made by Section 13102(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 447 of the Internal Revenue Code, relating to method of accounting for corporations engaged in farming, shall apply, except as otherwise provided.SEC. 15.
Section 17564 of the Revenue and Taxation Code is amended to read:17564.
(a) Long-term contracts shall be accounted for in accordance with the special rules set forth in Section 460 of the Internal Revenue Code.SEC. 16.
Section 17859 is added to the Revenue and Taxation Code, to read:17859.
(a) The amendments made by Section 13504 of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 708 of the Internal Revenue Code, relating to the continuation of a partnership, shall apply, except as otherwise provided.SEC. 17.
Section 18031.5 of the Revenue and Taxation Code is repealed.Section 1031(i) of the Internal Revenue Code, relating to special rules for mutual ditch, reservoir, or irrigation company stock, shall not apply.
SEC. 18.
Section 18031.5 is added to the Revenue and Taxation Code, to read:18031.5.
(a) The amendments made by Section 13303(a) and (b) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 1031 of the Internal Revenue Code, relating to Exchange of real property held for productive use or investment, shall apply, except as otherwise provided in this section.SEC. 19.
Section 19131.5 of the Revenue and Taxation Code is amended to read:19131.5.
(a) Section 6164 of the Internal Revenue Code, relating to extension of time for payment of taxes by corporations expecting carrybacks, shall apply, except as otherwise provided.SEC. 20.
Section 23711 of the Revenue and Taxation Code is amended to read:23711.
Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.SEC. 21.
Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4.
For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.SEC. 22.
Section 24343 of the Revenue and Taxation Code is amended to read:24343.
(a) Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall apply, except as otherwise provided.SEC. 23.
Section 24343.1 is added to the Revenue and Taxation Code, to read:24343.1.
(a) The amendments made by Section 13531(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to add Section 162(r) to the Internal Revenue Code, relating to the disallowance of FDIC premiums paid by certain large financial institutions, shall apply, except as otherwise provided.SEC. 24.
Section 24416 of the Revenue and Taxation Code is amended to read:24416.
Except as provided in Sections 24416.1, 24416.2, 24416.4, 24416.5, 24416.6, and 24416.7, a net operating loss deduction shall be allowed in computing net income under Section 24341 and shall be determined in accordance with Section 172 of the Internal Revenue Code, except as otherwise provided.(3)Notwithstanding paragraph (2), Section 172(b)(1)(B) of the Internal Revenue Code, relating to special rules for REITs, and Section 172(b)(1)(E) of the Internal Revenue Code, relating to excess interest loss, and Section 172(h) of the Internal Revenue Code, relating to corporate equity reduction interest losses, shall apply as provided.
(4)
(i)The provisions of Section 172(b)(1)(D) of the Internal Revenue Code, relating to bad debt losses of commercial banks, do not apply.
(j)
(k)
(l)
SEC. 25.
Section 24416.21 of the Revenue and Taxation Code is amended to read:24416.21.
(a) Notwithstanding Sections 24416, 24416.1, 24416.2, 24416.4, 24416.5, 24416.6, and 24416.7 of this code and Section 172 of the Internal Revenue Code, no net operating loss deduction shall be allowed for any taxable year beginning on or after January 1, 2008, and before January 1, 2012.SEC. 26.
Section 24416.22 of the Revenue and Taxation Code is amended to read:24416.22.
Notwithstanding Section 24416.1, 24416.2, 24416.4, 24416.5, 24416.6, or 24416.7 to the contrary, a net operating loss attributable to a taxable year beginning on or after January 1, 2008, shall be a net operating carryover to each of the 20 taxable years following the year of the loss, and a net operating loss attributable to a taxable year beginning on or after January 1, 2013, and before January 1, 2019, shall also be a net operating loss carryback to each of the two taxable years preceding the taxable year of loss.SEC. 27.
Section 24422.3 of the Revenue and Taxation Code is amended to read:24422.3.
(a) Section 263A of the Internal Revenue Code, relating to capitalization and inclusion in inventory costs of certain expenses, shall apply, except as otherwise provided.SEC. 28.
Section 24451.1 is added to the Revenue and Taxation Code, to read:24451.1.
(a) Notwithstanding paragraph (3) of subdivision (e) of Section 23051.5, if an election has been made by a taxpayer under Section 338 of the Internal Revenue Code, relating to certain stock purchases treated as asset acquisitions, or where a taxpayer is deemed to have made an election under Section 338(e) of the Internal Revenue Code, relating to deemed election where purchasing corporation acquires asset of target corporation, for federal income tax purposes, a separate election shall not be allowed under this part and the federal election shall be binding for purposes of this part, Part 10 (commencing with Section 17001), and Part 10.2 (commencing with Section 18401).SEC. 29.
Section 24652 of the Revenue and Taxation Code is amended to read:24652.
(a) Section 447 of the Internal Revenue Code, relating to method of accounting for corporations engaged in farming, shall apply, except as otherwise provided.SEC. 30.
Section 24652.6 is added to the Revenue and Taxation Code, to read:24652.6.
(a) For taxable years beginning on or after January 1, 2019, amendments made by Section 13102(e)(2) of the Tax Cuts and Jobs Act (Public Law 115-97), relating to preservation of suspense account rules with respect to any existing suspense accounts, shall apply to any suspense account existing as of the effective date of the act adding this subdivision that was not otherwise precluded by Section 24652.5.SEC. 31.
Section 24654 of the Revenue and Taxation Code is amended to read:24654.
(a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.SEC. 32.
Section 24673.2 of the Revenue and Taxation Code is amended to read:24673.2.
(a) Section 460 of the Internal Revenue Code, relating to special rules for long-term contracts, shall apply, except as otherwise provided.SEC. 33.
Section 24701 of the Revenue and Taxation Code is amended to read:24701.
(a) Section 471 of the Internal Revenue Code, relating to the general rule for inventories, shall apply, except as otherwise provided.(b)
SEC. 34.
Section 24941.5 of the Revenue and Taxation Code is repealed.Section 1031(i) of the Internal Revenue Code, relating to special rules for mutual ditch, reservoir, or irrigation company stock, shall not apply.
SEC. 35.
Section 24941.5 is added to the Revenue and Taxation Code, to read:24941.5.
(a) The amendments made by Section 13303(a) and (b) of the Tax Cuts and Jobs Act (Public Law 115-97) to Section 1031 of the Internal Revenue Code, relating to Exchange of real property held for productive use or investment, shall apply, subject to subdivision (b).SEC. 36.
The Legislature finds and declares that providing partnerships the election under paragraph (1) of subdivision (d) of Section 17859 of the Revenue and Taxation Code to receive the same treatment as a partnership for federal tax purposes with respect to partnership technical terminations reduces federal and state differences on the tax returns of the partnership and its partners, thereby increasing compliance with California tax law, and thus serves a public purpose and does not constitute a prohibited gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 37.
The Legislature hereby finds and declares that providing ABLE account beneficiaries the ability to contribute their own earnings to the ABLE account up to the federal poverty level and allowing Section 529 plan accounts to roll over to ABLE accounts eliminates differences in the qualification criteria for ABLE accounts under federal tax law and California tax law, and thus constitutes a public purpose and is not a prohibited gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 38.
The Legislature hereby finds and declares that allowing taxpayers to make an election in order to receive the same treatment for California tax purposes as the taxpayer receives for federal tax purposes with respect to the taxpayer’s accounting method for an entire taxable year constitutes a public purpose and is not a prohibited gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 39.
The Legislature hereby finds and declares that General Fund revenues generated pursuant to this bill are estimated to provide over $1 billion to schools through an increased Proposition 98 minimum funding level from the 2019–20 fiscal year to the 2022–23 fiscal year, inclusive.SEC. 40.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:This act shall be known, and may be cited, as the Safe Drinking Water for All Act.
For purposes of this article, the following definitions apply:
(a)“Fee” means the safe drinking water fee for nondairy confined animal facilities.
(b)“Fund” means the Safe and Affordable Drinking Water Fund established by Section 116767 of the Health and Safety Code.
(c)(1)“Nondairy confined animal facilities” means bovine operations, poultry operations, swine operations, and other livestock operations, excluding dairies, where all of the following apply:
(A)Operations are designed
to corral, pen, or otherwise enclose or hold domestic livestock.
(B)Feeding is exclusively by means other than grazing.
(C)Facilities are subject to annual fees for confined animal facilities adopted in accordance with Section 13260 of the Water Code.
(2)“Nondairy confined animal facilities” does not include facilities subject to Article 14.5 (commencing with Section 62215) of Chapter 2 of Part 3 of Division 21.
(a)Beginning in the 2021 calendar year, each producer owning a nondairy confined animal facility shall pay annually to the secretary a safe drinking water fee. The amount of the fee paid annually to the secretary shall equal one thousand dollars ($1,000) for a producer that owns a single nondairy confined animal facility. For a producer that owns more than one nondairy confined animal facility, the amount of the fee paid annually to the secretary shall equal one thousand dollars ($1,000) for the first facility and seven hundred fifty dollars ($750) per each facility thereafter owned by the same producer.
(b)Notwithstanding subdivision (a), the amount of the fee paid annually
to the secretary by a producer that owns more than one nondairy confined animal facility shall not exceed twelve thousand dollars ($12,000) per year.
(c)The secretary may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this article.
The secretary shall deposit all moneys received under this article into the fund.
(a)It is the intent of the Legislature to require licensees of bulk fertilizing materials, and to authorize licensees of packaged fertilizing materials, to pass the fertilizer safe drinking water fee on to the end user of the fertilizer.
(b)For purposes of this article, the following definitions apply:
(1)“Bulk fertilizing material” has the same meaning as applies to “bulk material” in Section 14517.
(2)“Compost” has the same meaning as defined in Section 14525.
(3)“Fertilizing material” means any commercial fertilizer, agricultural mineral, auxiliary soil and plant substance, organic input material, or packaged soil amendment. “Fertilizing material” does not include compost.
(4)“Fund” means the Safe and Affordable Drinking Water Fund established by Section 116767 of the Health and Safety Code.
(5)“Noncommercial use” has the same meaning as defined in Section 14549.
(6)“Packaged” has the same meaning as defined in Section 14551.
(a)In addition to the assessments provided in Section 14611, during calendar years 2020 to 2034, inclusive, a licensee whose name appears on the label of packaged fertilizing
materials labeled for noncommercial use shall pay to the secretary a fertilizer safe drinking water fee of six mills ($0.006) per dollar of sales for all sales of fertilizing materials to be deposited into the fund.
(b)In addition to the assessments provided in Section 14611, during calendar years 2020 to 2034, inclusive, a licensee whose name appears on the label of fertilizing materials, excluding packaged fertilizing materials labeled for noncommercial use, shall pay to the secretary a fertilizer safe drinking water fee of one cent ($0.01) per dollar of sales for all sales of fertilizing materials to be deposited into the fund.
(c)This section shall remain in effect only until January 1, 2035, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2035, deletes or extends that date.
(a)In addition to the assessments provided in Section 14611, beginning with calendar year 2035, a licensee whose name appears on the label of packaged fertilizing materials labeled for noncommercial use shall pay to the secretary a fertilizer safe drinking water fee of two mills ($0.002) per dollar of sales for all sales of fertilizing materials to be deposited into the fund.
(b)In addition to the assessments provided in Section 14611, beginning with calendar year 2035, a licensee whose name appears on the label of a fertilizing material, excluding packaged fertilizing materials labeled for noncommercial use, shall pay to the secretary a fertilizer safe drinking water fee of four mills ($0.004) per dollar of sales for all sales of fertilizing materials to be deposited into the fund.
(c)(1)The secretary may adjust the fertilizer safe drinking water fee through regular or emergency regulation as necessary to meet but not exceed 70 percent of the anticipated funding need for nitrate in the most recent assessment of funding need adopted by the State Water Resources Control Board pursuant to subdivision (b) of Section 116769 of the Health and Safety Code, or the sum of seven million dollars ($7,000,000), whichever is less. By October 1 of each year, the secretary shall notify all licensees of the amount of the fertilizer safe drinking water fee to be assessed in the following calendar year.
(2)An emergency regulation adopted pursuant to this subdivision shall be adopted by the secretary in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. Any emergency regulations adopted by the secretary pursuant to this subdivision shall remain in effect until revised by the secretary.
(d)This section shall become operative on January 1, 2035.
(a)(1)A licensee whose name appears on the label who sells or distributes bulk fertilizing materials shall charge an unlicensed purchaser the fertilizer safe drinking water fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the purchaser. This fee shall be included on the bill of sale as a separate line item.
(2)(A)A licensee whose name appears on the label of packaged fertilizing materials may include the fertilizer safe drinking water fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the purchaser or may include
the charge with the assessment collected pursuant to Section 14611 as a separate line item on the bill of sale and identified as the California Regulatory and Safe Drinking Water Assessment.
(B)Notwithstanding paragraph (1), a licensee whose name appears on the label who sells or distributes bulk fertilizing material may include the fertilizer safe drinking water fee with the assessment collected pursuant to Section 14611 as a separate line item on the bill of sale and identified as the California Regulatory and Safe Drinking Water Assessment.
(b)The secretary may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this article.
(c)Beginning July 1, 2022, the secretary
may retain up to 5 percent of the moneys collected pursuant to this article for reasonable costs associated with the implementation and enforcement of this article.
The secretary shall deposit all moneys received under this article into the fund.
(a)It is the intent of the Legislature that the dairy safe drinking water fee described in Section 62216 be paid for all milk produced in the state, regardless of grade.
(b)For purposes of this article, the following definitions apply:
(1)“Fee” means the dairy safe drinking water fee.
(2)“Fund” means the Safe and Affordable Drinking Water Fund established by Section 116767 of the Health and Safety Code.
(3)“Manufacturing milk” has the same meaning as defined in Section 32509.
(4)“Market milk” has the same meaning as defined in Section 32510.
(5)“Milk” includes market milk and manufacturing milk.
(a)Beginning January 1, 2022, each handler, including a producer-handler, shall deduct the sum of two cents and three hundred twenty-five-tenths mills ($0.020325) per hundredweight of milk from payments made to producers for milk, including the handler’s own production, as a dairy safe drinking water fee.
(b)The secretary shall adopt regulations necessary for the proper administration and enforcement of this section by January 1, 2022.
(a)A handler shall pay the dairy safe drinking water fee to the secretary on or before the 45th day following the last day of the month in which the milk was received.
(b)The secretary shall deposit all moneys received under this article into the fund.
(c)(1)Except as provided in paragraph (2), the secretary may retain up to 4 percent of the total amount that is paid to the secretary pursuant to this article for reasonable costs of the secretary associated with the implementation and enforcement of this article.
(2)Beginning July 1, 2022, the secretary may retain up to 2 percent of the moneys collected pursuant to this article for reasonable costs of the secretary associated with the implementation and enforcement of this article.
(d)The secretary may require handlers, including cooperative associations acting as handlers, to make reports at any intervals and in any detail that the secretary finds necessary for the accurate collection of the fee.
(e)For the purposes of enforcing this article, the secretary, through the secretary’s duly authorized representatives and agents, shall have access to the records of every producer and handler. The secretary shall have at all times free and unimpeded access to any building, yard, warehouse, store, manufacturing facility, or
transportation facility in which any milk or milk product is produced, bought, sold, stored, bottled, handled, or manufactured.
(f)Any books, papers, records, documents, or reports made to, acquired by, prepared by, or maintained by the secretary pursuant to this article that would disclose any information about finances, financial status, financial worth, composition, market share, or business operations of any producer or handler, excluding information that solely reflects transfers of production base and pool quota among producers, is confidential and shall not be disclosed to any person other than the person from whom the information was received, except pursuant to the final order of a court with jurisdiction, or as necessary for the proper determination of any proceeding before the secretary.
(a)It is the intent of the Legislature to secure safe drinking water for all Californians by establishing the Safe and Affordable Drinking Water Fund in order to address current barriers to safe drinking water, including, but not limited to, lack of funding for interim and long-term drinking water solutions, the need for funding for technical assistance, and funding for long-term operation and maintenance costs.
(b)It is
the intent of the Legislature that
revenue from fees deposited in the Safe and Affordable Drinking Water Fund be available annually for the purposes of this chapter.
For the purposes of this chapter:
(a)“Administrator” has the same meaning as defined in Section 116686.
(b)“Board” means the State Water Resources Control Board.
(c)“Community water system” has the same meaning as defined in Section 116275.
(d)“Disadvantaged community” has the same meaning as defined in Section 116275.
(e)“Domestic well” means a groundwater well used to supply water for the domestic needs of an individual residence or
water systems that are not public water systems and that have no more than four service connections.
(f)“Eligible applicant” means a public water system, including, but not limited to, a mutual water company; a public utility; a public agency, including, but not limited to, a local educational agency that owns or operates a public water system; a nonprofit organization; a federally recognized Indian tribe; a state Indian tribe listed on the Native American Heritage Commission’s California Tribal Consultation List; an administrator; or a groundwater sustainability agency.
(g)“Fund” means the Safe and Affordable Drinking Water Fund established pursuant to Section 116767.
(h)“Fund implementation plan” means the
fund implementation plan adopted pursuant to Section 116769.
(i)“Groundwater sustainability agency” has the same meaning as defined in Section 10721 of the Water Code.
(j)“Low-income household” means a household with an income that is less than 200 percent of the federal poverty level.
(k)“Public water system” has the same meaning as defined in Section 116275.
(l)“Replacement water” includes, but is not limited to, bottled water,
vended water, point-of-use, or point-of-entry treatment units.
(m)“Retail water system” has the same meaning as provided in Section 116455.
(n)“Safe drinking water”
means drinking water that meets primary and secondary drinking water standards and applicable regulations and does not contain unhealthy levels of copper or lead.
(o)“Service connection” has the same meaning as defined in Section 116275.
(p)“State small water system” has the same meaning as defined in Section 116275.
(q)“Vended water” has the same meaning as defined in Section 111070.
(a)The Safe and Affordable Drinking Water Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the board without regard to fiscal years, in accordance with this chapter. Moneys in the fund at the close of the fiscal year shall remain in the fund and shall not revert to the General Fund. Moneys in the fund shall not be available for appropriation or borrowed for use for any purpose not established in this chapter unless that use of the moneys receives an affirmative vote of two-thirds of the membership in each house of the Legislature.
(b)The board shall report annually in the Governor’s budget fund revenues, including interest revenues, expenditures, and fund balances.
(a)The board shall administer the fund for the purposes of this chapter to provide a source of funding to secure access to safe drinking water for all Californians, while also ensuring the long-term sustainability of drinking water service and infrastructure. The board shall prioritize the use of this funding to assist disadvantaged communities and low-income households. In order to maximize the use of other funding sources for capital construction projects when available, the board shall prioritize use of this funding for costs other than those related to capital construction costs, except for capital construction costs associated with consolidation and service extension to reduce the ongoing unit cost of service and to
increase sustainability of drinking water infrastructure and service delivery. Beginning January 1, 2020, an expenditure from the fund shall be consistent with the annual fund implementation plan.
(b)In accordance with subdivision (a), the board shall expend moneys in the fund for grants, loans, contracts, or services to assist eligible applicants with any of the following:
(1)The provision of replacement water, as needed, to ensure immediate protection of health and safety as a short-term solution.
(2)The development, implementation, and sustainability of long-term drinking water solutions that include, but are not limited to, the following:
(A)Technical assistance, planning, construction, repair, and operation and maintenance costs associated with replacing, blending, or treating drinking water or with fixing or replacing failing water system infrastructure, pipes, or fixtures. Technical assistance and planning costs may include, but are not limited to, analyses to identify, and efforts to further, opportunities to reduce the unit cost of providing drinking water through organizational and operational efficiency
improvements, system consolidation and service extension, implementation of new technology, and other options and approaches to reduce costs.
(B)Operations and maintenance costs associated with consolidated water systems, extended drinking water services, or reliance on a substituted drinking water source.
(C)Creating and maintaining natural means and green infrastructure solutions that contribute to sustainable drinking water.
(D)Consolidating water systems.
(E)Extending drinking water services to other public water systems, domestic wells, or state small water systems.
(F)The satisfaction
of outstanding long-term debt obligations of public water systems where the board determines that a system’s lack of access to capital markets renders this solution the most cost effective for removing a financial barrier to the system’s sustainable, long-term provision of drinking water.
(3)Identifying and providing outreach to Californians who are eligible to receive assistance from the fund.
(4)Testing the drinking water quality of domestic wells serving low-income households in high-risk areas identified pursuant to Section 117211.
(5)The provision of administrative and managerial services under Section 116686.
(6)Provision of wastewater treatment
plant operations and maintenance for areas in which polluted water originates from outside the state.
(c)The board may provide money from the fund to the Attorney General for the purpose of litigation brought against parties responsible for contamination of drinking water supplies to recover the costs of remediation, replacement drinking water supplies, or other board activities that restore safe drinking water to communities, including the costs of litigation. All funds recovered through litigation shall be deposited into the fund.
(d)The board may expend moneys from the fund for reasonable costs associated with administration of the fund. Beginning July 1, 2022, the board may expend no more than 5 percent of the annual revenues from the fund for reasonable costs associated with administration of the fund.
(e)The board may undertake any of the following actions to implement the fund:
(1)Provide for the deposit of any of the following moneys into the
fund:
(A)Federal contributions.
(B)Voluntary contributions, gifts, grants, or bequests.
(C)Settlements from parties responsible for contamination of drinking water supplies.
(2)Enter into agreements for contributions to the fund from the federal government, local or state agencies, and private corporations or nonprofit organizations.
(3)Provide for appropriate audit, accounting, and fiscal management services, plans, and reports relative to the fund.
(4)Direct portions of the fund to a subset of eligible applicants as required or
appropriate based on funding source and consistent with the annual fund implementation plan.
(5)Direct moneys deposited into the fund described in subparagraph (B) of paragraph (1) towards a specific project, program, or study.
(6)Contribute funding available from other sources related to water quality to the fund or combine funding from the other sources with money from the fund to support activities otherwise authorized by this article.
(7)Take additional action as may be appropriate for adequate administration and operation of the fund.
(f)In administering the fund, the board shall make reasonable efforts to ensure all of the following:
(1)That parties responsible for contamination of drinking water supplies affecting an eligible applicant who can be directly or easily identified by the board pay or reimburse costs associated with contamination.
(2)That funds are used to secure the long-term
sustainability of drinking water service and infrastructure, including, but not limited to, requiring adequate technical, managerial, and financial capacity of eligible applicants as part of funding agreement outcomes. Funding shall be prioritized to implement consolidations and service extensions when feasible, and administrative and managerial contracts or grants entered into pursuant to Section 116686 where applicable. Funds shall not be used to delay, prevent, or avoid the consolidation or extension of service to public water systems where it is feasible and the least-cost alternative. The board may set appropriate requirements as a condition of funding, including, but not limited to, a system technical, managerial, or financial capacity audit, improvements to reduce costs and increase efficiencies, an evaluation of alternative treatment technologies, and a consolidation or service extension
feasibility study. As a condition of funding, the board may require a domestic well with nitrate contamination where ongoing septic system failure may be causing or contributing to contamination of a drinking water source to conduct an investigation and project to address the septic system failure if adequate funding sources are identified and accessible.
(3)That funds are not used to subsidize large-scale nonpotable use.
(4)That the total uncommitted amount in the fund does not exceed two times the anticipated funding need in the most recent assessment of funding need.
(g)In administering the fund, the board shall ensure that all moneys deposited into the fund from the
safe drinking water fee for nondairy confined animal facilities pursuant to Article 10.5 (commencing with Section 595) of Chapter 3 of Part 1 of Division 1 of the Food and Agricultural Code, the fertilizer safe drinking water fee pursuant to Article 6.5 (commencing with Section 14615) of Chapter 5 of Division 7 of the Food and Agricultural Code, and the dairy safe drinking water fee pursuant to Article 14.5 (commencing with Section 62215) of Chapter 2 of Part 3 of Division 21 of the Food and Agricultural Code shall be used to address nitrate-related contamination issues.
(h)At least once every 10 years, the board shall conduct a public review and assessment of the fund to determine all of the following:
(1)The effectiveness of the fund in securing access to safe drinking water for all Californians, while also ensuring the long-term sustainability of drinking water service and infrastructure.
(2)If the fees deposited into the fund have been appropriately expended.
(3)For community water systems that have received funding for 10 years or more and for which self-sufficiency has not been achieved, the actions that have been taken, the reasons why self-sufficiency has not been achieved, and, if available, ways in which the community water system may become self-sufficient.
(4)What other actions are necessary to carry out the purposes of this chapter.
(i)Neither the board nor any employee of the board may be held liable for any act that is necessary to carry out the purposes of this chapter. The board or any authorized person shall not be deemed to have incurred or to be required to incur any obligation to provide additional funding or undertake additional action solely as a result of having undertaken
an action pursuant to this chapter.
(j)(1)The board shall convene an environmental justice advisory committee, for the purposes of this section, consisting of at least three members, to advise it in conducting the public review and assessment pursuant to subdivision (h)
and any other pertinent matter in implementing this chapter. The advisory committee shall be comprised of representatives from communities in the state with the most significant exposure to water pollution, including, but not limited to, communities with minority populations or low-income populations, or both.
(2)The board shall appoint committee members to the environmental justice advisory committee from nominations received from environmental justice organizations and community groups.
(3)The board shall provide reasonable per diem for attendance at environmental justice advisory committee meetings by committee members from nonprofit organizations.
By July 1 of each year, the board shall do all of the following:
(a)Prepare and make available a report of expenditures from the fund.
(b)Adopt, after a public hearing, an assessment of funding need, based on available data, that includes all of the following:
(1)Identification of systems and populations potentially in need of assistance, including, but not limited to, all of the following:
(A)A list of systems that consistently fail to provide an adequate supply of safe drinking water. The list shall
include all of the following:
(i)Any public water system that consistently fails to provide an adequate supply of safe drinking water.
(ii)Any community water system that serves a disadvantaged community that must charge fees that exceed the affordability threshold established in the board’s Safe Drinking Water State Revolving Fund Intended Use Plan in order to supply, treat, and distribute potable water that complies with federal and state drinking water standards.
(iii)Any state small water system that consistently fails to provide an adequate supply of safe drinking water.
(B)A list of programs that assist, or that will assist, households supplied
by a domestic well that consistently fails to provide an adequate supply of safe drinking water. This list shall include the number and approximate location of households served by each program without identifying exact addresses or other personal information.
(C)A list of public water systems and state small water systems that may be at risk of failing to provide an adequate supply of safe drinking water.
(D)An estimate of the number of households that are served by domestic wells or state small water systems in high-risk areas identified pursuant to Section 117211. The estimate shall identify approximate locations of households, without identifying exact addresses or other personal information, in order to identify potential target areas for outreach and assistance
programs.
(E)An estimate of the need related to drinking water containing unhealthy levels of copper or lead that includes, but is not limited to, unhealthy levels of lead and copper in drinking water in schools and daycare facilities.
(2)An analysis of anticipated funding, per contaminant, needed for known projects, services, or programs by eligible applicants, consistent with the fund implementation plan, including any funding needed for existing long-term funding commitments from the fund. The board shall identify and consider other existing funding sources able to support any projects, services, or programs identified, including, but not limited to, local funding capacity, state or federal funding
sources for capital projects, funding from responsible parties, and specialized funding sources contributing to the fund.
(3)An estimate of the funding needed for the next fiscal year based on the amount available in the fund, anticipated funding needs, other existing funding sources, and other relevant data and information.
(c)(1)Adopt, after a public hearing, a fund implementation plan and policy handbook with priorities and guidelines for expenditures of the fund.
(2)The board shall work with a multistakeholder advisory group to establish priorities and guidelines for the fund implementation plan and policy handbook. The multistakeholder advisory group shall be open to participation by all
of the following:
(A)Representatives of entities paying into the fund.
(B)Public water systems.
(C)Technical assistance providers.
(D)Local agencies.
(E)Nongovernmental organizations.
(F)Residents served by community water systems in disadvantaged communities, state small water systems, and domestic wells.
(G)The public.
(3)The adoption of a fund implementation plan and policy handbook and the
implementation of the fund pursuant to the policy handbook are not subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(a)There is hereby imposed a statewide safe and affordable drinking water system charge of fifty cents ($0.50) per service connection per month on all retail water systems.
(b)(1)By July 1, 2020, and annually by each July 1 thereafter, each
retail water system shall remit to the board the amount of the system charge imposed pursuant to subdivision (a) for their retail water system.
(2)To the extent that a public water system seeks to recover the costs of the system charge from its ratepayers, it shall incorporate the costs into its water rates and shall not impose a per-connection fee. A public water system may draw on other available financial resources to pay the system charge.
(c)The executive director of the board shall deposit all moneys received pursuant to this section in the fund. The board may expend moneys from the fund for reasonable costs associated with the implementation and enforcement of this section.
(a)The board, in consultation with the California Department of Tax and Fee Administration, shall administer and collect the system charge imposed by this article in accordance with the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code).
(b)For purposes of administration of the system charge imposed by this article, the following references in the Fee Collection Procedures Law shall have the following meanings:
(1)“Board” or “State Board of Equalization” means the State Water Resources Control Board.
(2)“Fee” means the safe and affordable drinking water system charge imposed pursuant to this article.
(3)“Feepayer” means a customer liable to pay the fee.
(c)The board, in consultation with the California Department of Tax and Fee Administration, may prescribe, adopt, and enforce regulations relating to the administration and enforcement of this article, including, but not limited to, collections, reporting, refunds, and appeals.
(d)The initial regulations adopted by the board to implement this article shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and shall not rely on the
statutory declaration of emergency in subdivision (e).
(e)Except as provided in subdivision (d), the regulations adopted pursuant to this section, any amendment to those regulations, or subsequent adjustments to the annual fees or adoption of fee schedule, shall be adopted by the board as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. Any emergency regulations adopted by the board, or adjustments to the annual fees made by the board pursuant to this section, shall remain in effect until revised by the board.
(a)The Legislature finds and declares as follows:
(1)Water quality problems occur in all areas of the state, including rural and urban areas.
(2)In particular, aging school infrastructure, including lead pipes, puts at risk thousands of children per year.
(b)It is the intent of the Legislature to establish a region-specific program to address the purposes of this chapter.
(c)(1)The board may allocate to each regional office sufficient funds to pay for the development
of sustainable plans for restoring safe drinking water to the communities identified by the board as provided in Article 3 (commencing with Section 117220) of Chapter 8.
(2)The board may allocate funding to a regional office for implementation of an approved sustainable plan for restoring safe drinking water to an identified community.
(d)The board shall annually allocate 20 percent of the annual revenues originating in each of the Division of Drinking Water regions from the statewide safe and affordable drinking water system charge imposed pursuant to Article 5 (commencing with Section 116771) to the region from which the revenues originate pursuant to subdivision (c). Funding allocated to a
region that the regional engineer does not expend in the region for two or more years shall revert to the fund.
Priority is a preference and not a necessary element for an award of funding available pursuant to Section 79724.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B
of the California Constitution.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure public health and safety relative to the funding for and provision of safe drinking water, it is necessary that this act take effect immediately.