Amended in Assembly March 20, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1069

Introduced by Assembly Member Dickinson

February 22, 2013

An act to amend Sections 3301, 3312, 3331, and 3332 of, and to repeal and add Section 3333 of, the Food and Agricultural Code, relating to expositions and fairs, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1069, as amended, Dickinson. California Exposition and State Fair.

Existing law provides for the California Exposition and State Fair as a separate, independent entity in the state government. Existing law provides that the governing body of the California Exposition and State begin delete Far end delete begin insert Fair end insert shall be an 11-member board of directors. Existing law requires the board of directors to appoint a general manager, and to submit an annual report to the Legislature and the Governor, as specified. Existing law establishes 4-year terms for each member of the board of directors, and requires vacancies that occur during the term to be filled by the appointing authority, as specified, for the remainder of the term. Existing law sets forth the board of directors’ powers and duties, including, among others, the power to contract, and authorizes the board, with the approval of the Department of General Services, to purchase, acquire, or hold real or personal property. Existing law requires the board of directors to maintain an account at a financial institution to deposit funds received by the California Exposition and State Fair and specifies that all funds maintained in the account are continuously appropriated to the board, without regard to fiscal year, for purposes relating to the California Exposition and State Fair.

This bill would require a director whose term has expired to continue to discharge his or her duties until a successor has been appointed. The bill would limit the costs and assessments of the California Exposition and State Fair to personnel costs and costs rendered pursuant to specified contracts entered into with other state agencies. The bill would revise the information the California Exposition and State Fair is required to report annually, and would require the information to be reported to the Governor only. The bill would require the California Exposition and State Fair’s books and accounts to be examined and reviewed annually and audited once every 5 years, as specified. The bill would revise the board of directors’ powers to appoint police to keep and preserve order and would require the board to delegate this power to officers and employees of the California Exposition and State Fair.

The begin delete bill would require the board of directors to develop, maintain, and comply with its own written policies and procedures for contracting, to publish competitive bidding procedures for contracts involving more than $100,000. The bill would specify that the board of directors has an affirmative duty to achieve the most feasible and practicable level of participation by small business entities owned by socially and economically disadvantaged persons in its procurement programs. The end delete bill would revise the powers of the board of directors and Department of General Services with respect to real and personal property, and would specify that title, control, and possession of all personal property acquired, held, managed, or operated by the California Exposition and State Fair vests with the California Exposition and State Fair. The bill would also specify that the proceeds of any lease, sale, or other agreement shall become the property of the California Exposition and State Fair and shall be available to the fair, as specified. By increasing moneys in a continuously appropriated fund, the bill would make an appropriation.

The bill would express various findings of the Legislature, and would revise a statement of the Legislature’s intent regarding the California Exposition and State Fair.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) The California Exposition and State Fair each year showcases
the best of the state’s agricultural, manufacturing, and arts and
science innovations, highlights the entrepreneurial character of
our state’s economy, lifestyle, and culture, and provides a gathering
place for all citizens of California to celebrate the rich history of
our state and to explore the trends shaping its future.

(b) The California Exposition and State Fair is located on a
350-acre portion of the 700-acre site in the area of the City of
Sacramento known as “Point West,” and it has been in this location
for over 40 years. The Board of Directors of the California
Exposition and State Fair desires to modernize and update the
aging capital facilities of the fair to alleviate the higher operating
costs resulting from deferred maintenance and to improve public
accessibility to the property. New and improved facilities will help
increase attendance and expand the number and type of exposition
events, thereby increasing revenues.

(c) The annual budget of the California Exposition and State
Fair has been substantially below the amount necessary to maintain
the fair as a first-class entertainment facility, and the annual
shortfalls have caused a growing backlog of deferred maintenance
issues that are in excess of $45 million.

(d) Therefore, it is the intent of the Legislature to provide the
management and the Board of Directors of the California
Exposition and State Fair the necessary tools to improve the
product, develop new revenue streams, streamline business
operations, and create and promote a strategy to help the California
Exposition and State Fair preserve and enhance this valuable state
asset by competing more favorably in the marketplace.

(e) When fully implemented, this legislation will create new
jobs and generate significant economic activity and state and local
tax revenues throughout the region, while additionally providing
a source of revenue for the long-term capital needs of the California
Exposition and State Fair.

SEC. 2.  

Section 3301 of the Food and Agricultural Code is
amended to read:

3301.  

It is the intent of the Legislature to vitalize the California
Exposition and State Fair as a separate, independent entity in state
government managed by a board of directors with sufficient
autonomy for efficient operation balanced by appropriate state
oversight. The board of directors shall develop a policy that
provides managerial and fiscal responsibility in order to ensure
fiscal independence from General Fund support. The board of
directors shall establish and maintain a policy that provides for an
innovative, agriculturally themed exposition that celebrates
California and the diversity of its people. The California Exposition
and State Fair shall strive to showcase the state’s industries and
agriculture with a program that recognizes California traditions
and explores the trends shaping its future.

SEC. 3.  

Section 3312 of the Food and Agricultural Code is
amended to read:

3312.  

(a) The governing body of the California Exposition
and State Fair shall be an 11-member board of directors. The
directors shall be residents of California and shall be appointed as
follows:

(1) Nine directors shall be appointed by the Governor with the
consent of the Senate. The directors appointed by the Governor
shall have general knowledge of, interest in, and expertise in one
or more of the following areas: fair management, city or county
government, horseracing, the arts, exhibiting, the media, education,
youth, commerce and commercial products of the state, industry
and industrial products of the state, agricultural production and
forest industries, the entertainment industry, livestock and poultry,
sports, recreation, fisheries, oceanography, organized labor, and
finance and banking.

(A) Five of the directors appointed by the Governor shall be
knowledgeable in the production, processing, or marketing of
agricultural products and may be appointed from lists of nominees
submitted for consideration to the Governor from California
agricultural organizations, district agricultural associations, and
county and citrus fruit fairs.

(B) One of the directors appointed by the Governor shall be a
public member.

(C) Three of the directors appointed by the Governor shall be
representative, to the extent possible, of areas of knowledge,
interest, and expertise enumerated in paragraph (1).

(2) One director shall be appointed by the Speaker of the
Assembly and one director shall be appointed by the Senate
Committee on Rules. These persons shall be representative, to the
extent possible, of areas of knowledge, interest, and expertise
enumerated in paragraph (1).

(b) The directors shall be appointed for four-year terms. The
appointing authority shall appoint directors to fill vacancies that
occur during a term, and the appointments shall be for the
remainder of the unexpired term.

(c) Notwithstanding Section 1774 of the Government Code or
any other law, begin delete every end delete begin insert a end insert director appointed pursuant to this section
whose term has expired shall continue to discharge the duties of
his or her office until his or her successor has been duly appointed
and is qualified to serve.

SEC. 4.  

Section 3331 of the Food and Agricultural Code is
amended to read:

3331.  

(a) (1) The board shall serve as the policymaking body
for the California Exposition and State Fair and shall have full
responsibility for the year-round management and operation of all
facilities of the California Exposition and State Fair in accordance
with Sections 3301 and 3311.

(2) The board shall provide for an annual fair to be held in
Sacramento County and shall strive to showcase the agriculture
and agricultural products of the state, the industries and industrial
products of the state, and the commercial products exported and
imported through the ports of the state in accordance with Sections
3301 and 3311. The fair shall be designated, and may be known,
as the California State Fair.

(b) Notwithstanding Article 2 (commencing with Section 11270)
of Chapter 3 of Part 1 of Division 3 of Title 2 of the Government
Code, relating to administrative costs, the California Exposition
and State Fair shall only be assessed and pay a share of those costs
directly related to personnel administration and no other
administrative costs for services from other state agencies except
costs for services rendered pursuant to specific contracts entered
into with other state agencies.

(c) On or before May 31 of each year, the general manager of
the California Exposition and State Fair shall report to the Governor
on all the events, operations, and financial condition of the
California Exposition and State Fair during the immediately
preceding calendar year ending December 31. The books and
accounts of the California Exposition and State Fair shall be
examined and reviewed annually and audited once every five years
by an independent registered certified public accountant or certified
public accountancy firm.

begin delete

SEC. 5.  

Section 3332 of the Food and Agricultural Code is
amended to read:

3332.  

The board may do any of the following:

(a) Contract in accordance with the following:

(1) The board shall develop, maintain, and comply with its own
written policies and procedures for contracting.

(2) Notwithstanding any other law, in developing the policies
and procedures referenced in paragraph (1), the board shall
incorporate the following to apply to contracts entered into or
procurement by the California Exposition and State Fair:

(A) To ensure the fullest competition, the board shall adopt and
publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than
one hundred thousand dollars ($100,000). The competitive bidding
procedures shall include, but not be limited to, requirements for
submission of bids and accompanying documentation, guidelines
for the use of requests for proposals, invitations to bid, or other
methods of bidding, and a bid protest procedure. The general
manager of the California Exposition and State Fair shall determine
whether the goods or services subject to this subparagraph are
available through existing contracts or price schedules of the
Department of General Services. The Legislature finds and declares
that fairs are a valuable community resource and recognizes that
local businesses and local communities make valuable
contributions to fairs that include direct and indirect support of
fair programs. The Legislature further finds and declares that local
businesses often provide opportunity purchases to local fairs that,
for similar things available through the state purchasing program,
may be purchased locally at a price equivalent to or less than that
available through the state purchasing program. As used in this
subparagraph, “opportunity purchases” means purchases made
locally, either individually or cooperatively, at a price equal to or
less than the price available through the state purchasing program
on or off state contract.

(B) The contracting standards, procedures, and rules contained
in this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one hundred thousand
dollars ($100,000). The board shall establish, as part of the bidding
procedures for general contracts, subcontracting guidelines that
implement this requirement.

(C) The board is subject to the Small Business Procurement and
Contract Act (Chapter 6.5 (commencing with Section 14835) of
Part 5.5 of Division 3 of Title 2 of the Government Code).

(D) In advertising or awarding any general contract for the
procurement of goods and services exceeding one hundred
thousand dollars ($100,000), the board and the general manager
shall require all bidders or contractors, or both, to include specific
plans or arrangements to use subcontracts with small business
entities owned by socially and economically disadvantaged persons.
The subcontracting plans shall delineate the nature and extent of
the services to be used, and those entities or individuals identified
for subcontracting if known.

(E) (i) It is the intent of the Legislature in enacting amendments
to this section made by the act that added this subparagraph, to
establish as an objective of the utmost importance the advancement
of business opportunities for small business entities described in
subparagraph (D) in the business activities created by the California
Exposition and State Fair. In that regard, the board shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by small business entities in its procurement
programs.

(ii) For purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians,
Eskimos, Aleuts, and Native Hawaiians), Asian-Pacific Americans
(including persons whose origins are from Japan, China, the
Philippines, Vietnam, Korea, Samoa, Guam, the United States
Trust Territories of the Pacific, Northern Marianas, Laos,
Cambodia, and Taiwan), and other minorities or any other natural
persons found by the board to be disadvantaged.

(b) Accept funds or gifts of value from the United States or any
person to aid in carrying out the purposes of this part.

(c) Conduct or contract for programs, and contract for the
purchase or lease of goods and services as are necessary for
effectuating the purposes of this chapter, either independently or
in cooperation with any individual, public or private organization,
or federal, state, or local governmental agency.

(d) Establish and maintain a bank checking account or other
financial institution account, approved by the Director of Finance
in accordance with Sections 16506 and 16605 of the Government
Code, for depositing funds received by the California Exposition
and State Fair. Notwithstanding Section 13340 of the Government
Code, all funds maintained in an account authorized by this
subdivision are continuously appropriated to the board, without
regard to fiscal year, to carry out this part.

(e) Approve the annual budget of the fair, and establish a
program for paying vendors who contract with the California
Exposition and State Fair.

(f) Make or adopt all necessary orders, rules, or regulations for
governing the activities of the California Exposition and State Fair.
Notwithstanding Section 14, any orders, rules, or regulations
adopted by the board are exempt from Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. For informational purposes only, however, any
order, rule, or regulation adopted by the board may be transmitted
to the Office of Administrative Law for filing with the Secretary
of State pursuant to Section 11343 of the Government Code.

(g) Delegate to the officers and employees of the California
Exposition and State Fair the independent authority to appoint
civil service personnel according to state civil service procedures.
The board may also delegate to officers and employees of the
California Exposition and State Fair the independent authority to
appoint police as authorized by subdivision (j).

(h) Operate a payroll system for paying employees, and a system
for accounting for vacation and sick leave credits of employees.

(i) Delegate to the officers and employees of the California
Exposition and State Fair the exercise of powers vested in the
board as the board may deem desirable for the orderly management
and operation of the California Exposition and State Fair.

(j) Delegate to the officers and employees of the California
Exposition and State Fair the independent authority to appoint all
necessary police to keep order and preserve peace at the California
Exposition and State Fair premises on a year-round basis who shall
have the powers of peace officers specified in Section 830.2 of the
Penal Code. A peace officer of the Department of the California
Highway Patrol may be employed as a peace officer while off duty
from his or her regular employment, subject to those conditions
as may be set forth by the Commissioner of the Department of the
California Highway Patrol. At least 75 percent of the persons
appointed pursuant to this subdivision shall possess the basic
certificate issued by the Commission on Peace Officers Standards
and Training. The remaining 25 percent may be appointed if the
person has completed a Peace Officer Standards and
Training-certified academy, or possesses a Level One Reserve
Certificate (as defined in Section 832.6 of the Penal Code). Of this
25 percent, any portion may be comprised of probation officers
certified under Section 832. Nothing in this subdivision shall be
construed to give probation officers appointed pursuant to this
subdivision peace officer powers pursuant to Section 830.2 of the
Penal Code.

(k) Except as provided in subdivision (m), with the approval of
the Department of General Services, purchase, acquire, hold, sell,
exchange, or convey any interest in real property. Any acquisition
of land or other real property is subject to the approval of the
Department of General Services, and in the case of the purchase
of real property, is subject to the Property Acquisition Law (Part
11 (commencing with Section 15850) of Division 3 of Title 2 of
the Government Code). Notwithstanding any other law, the
proceeds of any lease, sale, or other agreement pursuant to this
part shall become the property of the California Exposition and
State Fair and shall be available to the fair for any of the purposes
of this part.

(l) Make permanent improvements upon publicly owned real
property adjacent to, or near the vicinity of, the real property of
the California Exposition and State Fair when the improvements
materially benefit the property of the California Exposition and
State Fair.

(m) Lease, let, or grant licenses for use of its property for any
purpose for any period of time. Any lease of real property for a
period in excess of 20 years shall be subject to the approval of the
Department of General Services.

(n) Use or manage any of its property jointly or in connection
with any lessee or sublessee, for any purpose approved by the
board.

(o) With the approval of the Department of General Services,
pledge any and all revenues, moneys, accounts, accounts
receivable, contract rights, and other rights to payment of whatever
kind, pursuant to such terms and conditions as are approved by
the board. Any issuance of bonds, contracts entered into, debts
incurred, settlements, judgments, or liens under this section or
pursuant to Chapter 5 (commencing with Section 6500) of Division
7 of Title 1 of the Government Code, shall not directly, indirectly,
or contingently obligate the state or any political subdivision
thereof to levy or to pledge any form of taxation therefor or to
make any appropriation for their payment. Any such bond shall
contain on the face thereof a statement to the following effect:
“Neither the full faith and credit nor the taxing power of the State
of California is pledged to the payment of the principal of, or
interest on this bond.”

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 3332 of the end insert begin insert Food and Agricultural Code end insert begin insert is
amended to read: end insert

3332.  

The board may do any of the following:

(a) Contract.

(b) Accept funds or gifts of value from the United States or any
person to aid in carrying out the purposes of this part.

(c) Conduct or contract for programs, either independently or
in cooperation with any individual, public or private organization,
or federal, state, or local governmental agency.

(d) Establish and maintain a bank checking account or begin delete a savings
and loan association end delete begin insert other financial institution end insert account, approved
by the Director of Finance in accordance with Sections 16506 and
16605 of the Government Code, for depositing funds received by
the California Exposition and State Fair. Notwithstanding Section
13340 of the Government Code, all funds maintained in an account
authorized by this subdivision are continuously appropriated to
the board, without regard to fiscal year, to carry out this part.

(e)  begin delete Establish end delete begin insert Approve the annual budget of the California State
Fair and establish end insert a program for paying vendors who contract
with the California Exposition and State Fair.

(f) Make or adopt all necessary orders, rules, or regulations for
governing the activities of the California Exposition and State Fair.
Notwithstanding Section 14, any orders, rules, or regulations
adopted by the board are exempt from Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. For informational purposes only, however, any
order, rule, or regulation adopted by the board may be transmitted
to the Office of Administrative Law for filing with the Secretary
of State pursuant to Section 11343 of the Government Code.

(g) Delegate to the officers and employees of the California
Exposition and State Fair the authority to appoint civil service
personnel according to state civil service procedures. The board
may also delegate to officers and employees of the California
Exposition and State Fair the independent authority to appoint
begin delete marshals and end delete police as authorized by subdivision (j).

(h) Operate a payroll system for paying employees, and a system
for accounting for vacation and sick leave credits of employees.

(i) Delegate to the officers and employees of the California
Exposition and State Fair the exercise of powers vested in the
board as the board may deem desirable for the orderly management
and operation of the California Exposition and State Fair.

(j)  begin delete Appoint all necessary marshals and end delete begin insert Delegate to the officers
and employees of the California Exposition and State Fair the
independent authority to appoint all necessary end insert police to keep order
and preserve peace at the California Exposition and State Fair
premises on a year-round basis who shall have the powers of peace
officers specified in Section 830.2 of the Penal Code. A peace
officer of the Department of the California Highway Patrol may
be employed as a peace officer while off duty from his or her
regular employment, subject to those conditions as may be set
forth by the Commissioner of the Department of the California
Highway Patrol. At least 75 percent of the persons appointed
pursuant to this subdivision shall possess the basic certificate issued
by the Commission on Peace Officers Standards and Training. The
remaining 25 percent may be appointed if the person has completed
a Peace Officer Standards and Training-certified academy, or
possesses a Level One Reserve begin delete Certificate (as end delete begin insert Certificate, as end insert
defined in Section 832.6 of the Penal begin delete Code). end delete begin insert Code. end insert Of this 25
percent, any portion may be comprised of probation officers
certified under Section 832. Nothing in this subdivision shall be
construed to give probation officers appointed pursuant to this
subdivision peace officer powers pursuant to Section 830.2 of the
Penal Code.

(k) With the approval of the Department of General Services,
purchase, acquire, begin delete or hold real or personal property, and beautify
or improve that end delete begin insert hold, sell, exchange, or convey any interest in real end insert
property. Any acquisition of land or other real property is subject
to the approval of the Department of General Services, and in the
case of the purchase of real property, is subject to the Property
Acquisition Law (Part 11 (commencing with Section 15850) of
Division 3 of Title 2 of the Government Code). begin insert Notwithstanding
any other law, the proceeds of any lease, sale, or other agreement
pursuant to this part shall become the property of the California
Exposition and State Fair and shall be available to the California
State Fair for any of the purposes of this part. end insert

(l) With the approval of the Department of General Services,
make permanent improvements upon publicly owned real property
adjacent to, or near the vicinity of, the real property of the
California Exposition and State Fair when the improvements
materially benefit the property of the California Exposition and
State Fair.

(m) Lease, with the approval of the Department of General
Services, any of its property for any purpose for any period of
time.

(n) Use or manage any of its property, with the approval of the
Department of General Services, jointly or in connection with any
lessee or sublessee, for any purpose approved by the board.

(o) With the approval of the Department of General Services,
pledge any and all revenues, moneys, accounts, accounts
receivable, contract rights, and other rights to payment of whatever
kind, pursuant to begin delete such end delete begin insert the end insert terms and conditions as are approved
by the board. Any issuance of bonds, contracts entered into, debts
incurred, settlements, judgments, or liens under this section or
pursuant to Chapter 5 (commencing with Section 6500) of Division
7 of Title 1 of the Government Code, shall not directly, indirectly,
or contingently obligate the state or any political subdivision
begin delete thereof end delete begin insert of the state end insert to levy or to pledge any form of taxation
therefor or to make any appropriation for their payment. begin delete Any such end delete
begin insert This end insert bond shall contain on begin delete the end delete begin insert its end insert face begin delete thereof end delete a statement to the
following effect: “Neither the full faith and credit nor the taxing
power of the State of California is pledged to the payment of the
principal of, or interest on this bond.”

SEC. 6.  

Section 3333 of the Food and Agricultural Code is
repealed.

SEC. 7.  

Section 3333 is added to the Food and Agricultural
Code, to read:

3333.  

Notwithstanding Section 14660.5 of the Government
Code, the title, control, and possession of all personal property
acquired, held, managed, or operated by the California Exposition
and State Fair, including property controlled or possessed by the
fair before the enactment of this section, vests with the California
Exposition and State Fair.

SEC. 8.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to restore the viability of the California Exposition and
State Fair as soon as possible, it is necessary that this act take effect
immediately.