BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 282|
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UNFINISHED BUSINESS
Bill No: SB 282
Author: Cox (R)
Amended: 9/7/07
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 4/10/07
AYES: Florez, Denham, Battin, Maldonado, Vincent, Wiggins,
Wyland, Yee
NO VOTE RECORDED: Negrete McLeod
SENATE APPROPRIATIONS COMMITTEE : 16-0, 5/31/07
AYES: Torlakson, Cox, Aanestad, Ashburn, Cedillo, Corbett,
Dutton, Florez, Kuehl, Oropeza, Ridley-Thomas, Runner,
Simitian, Steinberg, Wyland, Yee
NO VOTE RECORDED: Battin
SENATE FLOOR : 37-2, 6/7/07
AYES: Aanestad, Ackerman, Alquist, Ashburn, Battin,
Calderon, Cedillo, Cogdill, Corbett, Correa, Cox, Denham,
Ducheny, Dutton, Florez, Hollingsworth, Kehoe, Kuehl,
Lowenthal, Machado, Maldonado, Margett, Migden, Negrete
McLeod, Oropeza, Padilla, Ridley-Thomas, Romero, Runner,
Scott, Simitian, Steinberg, Torlakson, Vincent, Wiggins,
Wyland, Yee
NOES: Harman, McClintock
NO VOTE RECORDED: Perata
ASSEMBLY FLOOR : Not available
SUBJECT : State Fair Leasing Authority
CONTINUED
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SOURCE : California Exposition and State Fair
DIGEST : This bill establishes the State Fair Leasing
Authority made up of representatives from the Department of
Food and Agriculture, the Department of Finance, the
Department of General Services, the California Exposition
and State Fair (Cal-Expo) and four appointed members. The
goal of this Authority is to enter into leases or other
agreements for the use of the State Fair Race Track or any
other owned or controlled by the fair. Also, the authority
is to prepare a master plan for the long-range
comprehensive development and improvement of the Cal-Expo
as specified.
Assembly Amendments change from three to four the members
who come from the Board of Directors of Cal-Expo as part of
the Authority making it two of whom shall be appointed by
the Governor. Require the Authority to also consult with
the city and county of Sacramento and to present for
comment the lease or agreement prior to leasing the
property or entering into the agreement. Make other
changes that are technical and clarifying in nature.
ANALYSIS :
Existing Law
1.Allows two or more public agencies to enter into a joint
powers agreement to conduct agricultural, industrial,
cultural, or other fairs or expositions.
2.Provides that entities formed pursuant to a joint powers
agreement have the authority to issue revenue bonds for
the purposes of conducting a program or completing a
project under its jurisdiction.
This bill:
1.Establishes the State Fair Leasing Authority made up of
representatives of the Department of Food and
Agriculture, the Department of Finance, the Department of
General Services, and the California Exposition and State
Fair, and four individuals who are members of the Board
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of Directors of the California Exposition and State Fair;
one appointed by the Speaker of the Assembly; one
appointed by the Senate Rules Committee, and two
appointed by the Governor.
2.Authorizes the authority to contract with consultants as
approved by the board of the authority. The authority
may not employ any of other staff.
3.Provides that the Director of the Department of Finance
shall serve as chairperson of the authority, and provides
that all meetings of the authority shall be open to the
public.
4.Allows the authority to enter into leases or other
agreements for the use of the State Fair Race Track or
any other property owned or controlled by Cal-Expo which
are necessary.
5.Requires the authority to also consult with and present
for comment the lease or agreement to the governing
bodies of the city and county of Sacramento prior to
awarding the large or entering into the agreement.
6.Requires Cal-Expo in consultation with the authority to
prepare a master plan approved by the board of directors
of the fair for the long-range comprehensive development
and improvement of, and construction upon, the property
of Cal-Expo. The plan shall prescribe the amounts which
may be expended for the various features of the plan, the
period authorized for the completion of each project, and
the terms of any revenue bond financing undertaken with
respect to the plan.
7.Requires the master plan to be submitted to the Joint
Legislative Budget Committee upon completion.
8.Requires that the costs, if any, for services to the
authority shall be paid for by the authority, with funds
generated pursuant to the provisions of this bill, and
any cost excess of the funds available to the authority
shall be paid by Cal-Expo.
9.Contains oversight provisions over the issuance of
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revenue bonds by joint powers agreement.
Comments
The author's office is carrying this bill on behalf of the
California Exposition and State Fair. The author's office
reports that currently, the state fair does not have the
authority to obtain long-term financing to fund
infrastructure improvements, deferred maintenance projects,
revitalization of existing facilities and new facility
construction on Cal-Expo property. Over the past several
years these deficiencies have had a negative effect on
operations, and have significantly reduced the revenue
generating capacity of the State Fair. The fair is
statutorily mandated to be self sufficient.
This bill authorizes the formation of the State Fair
Leasing Authority as described above. The authority will
be patterned after the State Track Leasing Commission,
which was formed to obtain long-range financing for
infrastructure improvements and new facility construction
upon the property of the Del Mar Racetrack. The State
Track Leasing Commission mechanism, under the management of
the Del Mar Thoroughbred Club has resulted in the most
successful horse racing operation in California and one of
the top tow or three race tracks in North America, while at
the same time generating revenue to fund improvements at
the fair grounds.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2007-08 2008-09
2009-10 Fund
State JPA Potentially minor initial and ongoing costs
Special*
to state departments that are members of the
JPA
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*Fair and Exposition Fund
SUPPORT : (Verified 9/7/07)
California Exposition and State Fair (source)
ARGUMENTS IN SUPPORT : The sponsor believes that the
enactment of this bill will allow Cal-Expo leasing
authority to enter into leases and to other agreements to
deal with the deferred maintenance issues and the
revitalization of facilities in accordance with the master
plan for the long-range comprehensive development and
improvement of the Cal-Expo property.
TSM:do 9/9/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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