BILL ANALYSIS SB 1085 Page 1 Date of Hearing: August 4, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1085 (Runner) - As Amended: June 28, 2010 Policy Committee: AgricultureVote:8 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill allows the Antelope Valley Fair (otherwise known as the 50th District Agricultural Association) to enter into a joint powers agreement for the purpose of operating, maintaining and improving the Antelope Valley fairgrounds. Specifically, this bill: 1)Allows the Antelope Valley Fair to enter into a JPA to operate and maintain the 50th DAA. 2)Authorizes the joint powers authority (JPA) to elect to be a member of the network of California fairs. 3)Requires the consent of the Secretary of the California Department of Food and Agriculture (CDFA) in order to enter into the joint powers agreement. 4)Provides that civil service employees of the 50th DAA have the option to remain in state employment under contract to the JPA or accept a position as an employee of the JPA. FISCAL EFFECT 1)Shifting the Antelope Valley Fair from the state to a JPA should not result in any additional costs for the state. 2)Streamlining the operation of the fair through a JPA could result in additional revenue for the operation of the fair. COMMENTS SB 1085 Page 2 1)Rationale . This bill would transfer the operation of the Antelope Valley Fair to a joint powers authority, thus removing the state from involvement in the fair. The 50th DAA believes that forming a JPA with closer ties to local government will enable the fair to operate more efficiently and with greater flexibility. The supporters note that this new entity will allow the fair to operate free of the constraints created by state bureaucracy. 2)The Antelope Valley Fair . 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 received approximately $25,000 from the Fairs and Exposition Fund. 3)Joint Powers Agreement . A joint powers agreement is a formal, legal agreement between two or more public agencies that share a common power and want to jointly implement programs, build facilities, or deliver services. With a joint powers agreement, a member agency agrees to be responsible for delivering a service on behalf of the other member agencies. For example, the City of San Jose signed a joint powers agreement with Santa Clara County to jointly administer redevelopment funds. Agencies that can exercise joint powers include federal agencies, state departments, counties, cities, special districts, school districts and redevelopment agencies. While this legislation authorizes the Antelope Valley Fair to enter into a joint powers agreement, it does not specify who the other member agencies will be. Currently, there are no fairs operating as JPAs in the state of California. As noted below, the fairs are made up of only District Agricultural Associations (which is what the 50th DAA is), county fairs, and nonprofits. The JPA model would be unique to the Antelope Valley Fair. However the JPA could contract with a nonprofit to manage the operation the fair, which would be similar to the way other fairs are run in the state. SB 1085 Page 3 4)California's Network of Fairs . The network of California fairs includes 80 fair organizations divided into four categories: a) 54 DAA's - a state government entity (2 DAA's were deactivated during fiscal year 1997-98, leaving 52 active DAA's). b) 23 county fairs - County government or not-for-profit organizations. c) 2 citrus fruit fairs - not-for-profit organizations. d) The California Exposition and State Fair (Cal Expo) - a state agency. SB 16 X2 (Ashburn; Chapter 12, Statutes of 2009-10 Second Extraordinary Session) provides among other things, that beginning on July 1, 2009, and annually thereafter, $32 million shall be appropriated from the state's General Fund and paid into the Fair and Exposition Fund for the financial support of the network of California fairs. This funding is used to support the 80 fairs in the network. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081