Amended  IN  Assembly  April 01, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1981


Introduced by Assembly Member Lackey

January 30, 2024


An act to amend Sections 3956, 3960, and 3961 of the Food and Agricultural Code, relating to district agricultural associations. An act to add Section 15706 to the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


AB 1981, as amended, Lackey. 50th District Agricultural Association: board membership. Franchise Tax Board: statewide financial relief payments: master agreements.
Existing law establishes the Franchise Tax Board in the Government Operations Agency to, among other things, administer state personal income taxes and corporation franchise and income taxes.
Existing law, the Better for Families Act, required the Franchise Tax Board, no later than September 30, 2023, to make a one-time Better for Families Tax Refund payment to each qualified recipient, as defined, of an applicable amount, as specified, in the form and manner determined by the Franchise Tax Board, in order to provide relief to Californians.
This bill would require the Franchise Tax Board, by no later than July 1, 2025, to enter into master agreements with debit card vendors to render services related to statewide financial relief payments. The bill would require each agreement to include certain terms, including definitions for key performance indicators, specified payment provisions, and options for fee-free services.

Existing law divides the state into agricultural districts and provides for the management of these districts by district agricultural associations, which are state institutions. Existing law provides for a board of directors consisting of 9 members for each district agricultural association, and provides for the appointment of each director by the Governor.

Existing law authorizes the 50th District Agricultural Association, with the consent of the Secretary of Food and Agriculture, to enter into a joint powers agreement for, among other purposes, the purpose of creating a joint powers agency to operate, maintain, and improve the facilities and functions of the 50th District Agricultural Association.

This bill would reduce the number of members on the board of the 50th District Agricultural Association to 3 members, as provided.

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

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


SECTION 1.

 Section 15706 is added to the Government Code, to read:

15706.
 (a) The Franchise Tax Board shall, by no later than July 1, 2025, enter into master agreements with debit card vendors to render services related to statewide financial relief payments.
(b) Each master agreement entered into pursuant to subdivision (a) shall include, but is not limited to, the following terms:
(1) Definitions for key performance indicators for required services, including customer service and fraud prevention, and how these indicators will be measured.
(2) Payment provisions that allow the state to do all of the following:
(A) Assess the reasonableness of the costs to be incurred.
(B) Mitigate the risk of making advance payments.
(C) Provide a means to recover or withhold funding in the event of vendor nonperformance, short of terminating the agreement.
(3) Options for fee-free services, including fee-free debit cards for statewide financial relief payment recipients.

SECTION 1.Section 3956 of the Food and Agricultural Code is amended to read:
3956.

(a)Except as provided in subdivision (b), the officers of the association shall consist of a board of directors of nine members.

(b)(1)The officers of the 50th District Agricultural Association shall consist of a board of directors of three members.

(2)(A)On January 1, 2025, the three officers of the 50th District Agricultural Association shall be the three officers of the association most recently appointed by the Governor and officially seated before January 1, 2025, who have not vacated their positions as of January 1, 2025.

(B)If any officer position cannot be filled pursuant to subparagraph (A), then the Governor shall appoint a new officer to serve in that position for a term specified in subdivision (b) of Section 3961.

(c)The directors shall be citizens and residents of the district.

(d)(1)A director shall not officially be seated on the board or participate in a board meeting until they have completed any mandatory forms and training, as required by state law and as determined by the department.

(2)A director shall, on a timely basis, complete any form or training that becomes mandatory during their term of office, retake any mandatory training that is required to be repeated periodically, and continue to submit any required forms during their term of office. The relevant form or training shall be completed by the director within 90 days of the form or training requirement or the expiration of the effective period of the form or training. A director shall be subject to removal from the board if they do not comply with these requirements.

SEC. 2.Section 3960 of the Food and Agricultural Code is amended to read:
3960.

The term of office of each director, except that of a member of the first board or the first board of the 50th District Agricultural Association described in subdivision (b) of Section 3961, is four years from the beginning of the term for which the person is appointed. Any vacancy shall be filled for the unexpired term. However, any director may be removed for cause by the Governor prior to the expiration of the director’s term.

SEC. 3.Section 3961 of the Food and Agricultural Code is amended to read:
3961.

(a)Except as provided in subdivision (b), the term of office of each member of the first board shall be fixed by the Governor so that the terms of the directors of the board shall expire in three groups of two, and one group of three, on the 15th day of January of each year following the formation of the association.

(b)(1)The term of office of each member of the first board of the 50th District Agricultural Association after the membership of that board is reduced to three members pursuant to subdivision (b) of Section 3956 shall be fixed by the Governor so that the terms of the directors of the board shall begin and expire as follows:

(A)The term of the first member shall begin on January 1, 2025, and expire on January 15, 2027.

(B)The term of the second member shall begin on January 1, 2025, and expire on January 15, 2028.

(C)The term of the third member shall begin on January 1, 2025, and expire on January 15, 2029.

(2)The terms described in subparagraphs (A) to (C), inclusive, of paragraph (1) shall be applied to the members serving on the board pursuant to paragraph (2) of subdivision (b) of Section 3956 based on when the member was appointed by the Governor beginning with the first appointed member serving the term set forth in paragraph (1) of subdivision (b).