BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    SB 1085                   HEARING:  4/20/10
          AUTHOR:   Runner                      FISCAL:  Yes
          VERSION:  2/17/10                     CONSULTANT:  John Chandler  

          
            50th District Agricultural Association: Antelope Valley Fair:  
                                       lease.

          BACKGROUND AND EXISTING LAW

          California Department of Food and Agriculture (CDFA), Division  
          of Fairs and Expositions (DFE) is responsible for overseeing the  
          54 District Agriculture Associations (DAA) throughout the state  
          that make up the California network of fairs.  Each DAA operates  
          with a degree of autonomy, with a board of directors appointed  
          by the governor, and in accordance with state law governing the  
          operation of state agencies.  DAAs contribute a great deal to  
          the state of California.  They offer an opportunity for the  
          local community to highlight its achievements, and in many  
          cases, they recognize the agriculture of the local area.

          The Antelope Valley Fair Association was incorporated on  
          September 12, 1938, and operated locally for three years.  On  
          September 13, 1941, the Antelope Valley Fair became the 50th DAA  
          with the donation of the land to the state.  The 50th DAA is  
          located in the northern part of Los Angeles County in the City  
          of Lancaster.  Working with the City of Lancaster, the 50th DAA  
          was relocated to a new site in 2003.  In the current fiscal  
          year, the 50th DAA generated $4.7 million in revenue and only  
          received approximately $25,000 from the Fairs and Exposition  
          Fund.  

          The Governor's 2004 California Performance Review proposed to  
          help refocus government on essential functions and redirect  
          functions to cooperative public-private ventures.  As part of  
          this review, it was suggested that the 54 DAAs be transformed  
          into public benefit corporations.  

          SB 1436 (Thompson), Chapter 259, Statutes of 1998, allows the  
          Director of General Services (DGS), with the consent of the  
          Secretary of State and Consumer Services, to lease the Napa  
          Valley Expo in Napa County for up to 99 years to a nonprofit  
          organization to operate an annual fair in lieu of the fair held  
          by the 25th District Agricultural Association.

          SB 281 (Maldonado), Chapter 346, Statutes of 2007, requires CDFA  




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          to develop, upon approval of DGS, criteria to be used for the  
          purchase of goods and the disposal of property by a district  
          agricultural association and Cal Expo.  

          In 2006, SB 1041 (Denham) would have transferred, from the  
          Department of General Services (DGS) to CDFA, the responsibility  
          to annually prepare a program for DAAs for delegating purchasing  
          authority to the DAAs. This bill was held in the Assembly  
          Appropriations Committee.



          PROPOSED LAW

          SB 1085 would authorize, with the approval of CDFA, a nonprofit  
          organization to hold an annual fair in lieu of an annual fair  
          held by the 50th DAA.  Specifically, this bill would:

                 Authorize the nonprofit to receive state funds.

                 Authorize Department of General Services to lease the  
               property of the 50th DAA, with the consent of CDFA, for up  
               to 99 years to a nonprofit to hold an annual fair.

                 Specify that the 50th DAA would be inactive while the  
               lease is in effect.

                 Allow the lease to be for less than market value of the  
               property.

                 Specify that if the nonprofit fails to hold an annual  
               fair the lease may be cancelled.

                 Provide that every civil service member of the 50th DAA  
               have an option to remain in state employment under contract  
               to the leasing nonprofit or accept a position as an  
               employee of the leasing nonprofit organization.  

                 Specify that the state is not liable for any debts,  
               liabilities, settlements, liens, or other obligations  
               incurred or imposed upon the nonprofit organization.

          COMMENTS

          1.Supporters of SB 1085 state that the lease of the 50th DAA to  
            a nonprofit for operation of the annual fair would allow  
            greater efficiency by removing the constraints created by the  





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            state bureaucracy.  Further, this bill would allow the  
            operation of the fair to be closely aligned with local  
            government, helping the fair to better reflect the local area.  
             With greater efficiency and closer links to local government,  
            SB 1085 would help the Antelope Valley Fair operate more  
            successfully.  

          2.The Business and Professions Code specifies that the 50th DAA  
            is included in the "network of California fairs."   SB 1085  
            allows the 50th DAA to be leased to a nonprofit for the  
            operation of an annual fair.  During this lease, the 50th DAA  
            would revert to inactive status.  This change could  
            potentially remove the Antelope Valley Fair from the "network  
            of California fairs."  The committee may wish to consider if  
            the bill should include a provision allowing the Antelope  
            Valley Fair to be part of the network of California fairs if  
            it is leased by a nonprofit to operate an annual fair.

          SUPPORT
          
          50th District Agricultural Association
          Antelope Valley Chamber of Commerce
          California Horse Council
          Dawn Babers
          Don Jesser
          H.W. Hunter, Inc.
          Johnny Zamrzla
          Michael Antonovich, Los Angeles County Supervisor
          Rex Parris, Mayor, City of Lancaster
          Stone Roofing Company
          The Showdown
          Western Fairs Association
          Western Pacific Roofing Corporation

          OPPOSITION
          
          None received