BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1085
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          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
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           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.  








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           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