BILL ANALYSIS Ó
AB 2490
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Date of Hearing: May 14, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2490 (Eggman) - As Amended: April 24, 2014
Policy Committee:
AgricultureVote:7-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill modifies District Agricultural Association (DAA)
activities that require prior approval from the Department of
Food and Agriculture (DFA) and/or the Department of General
Services (DGS); modifies and expands certain DAA authority and
scope of duty; grants the Governor the right to remove any DAA
director for cause. Specifically, summary, this bill:
1)Deletes the requirement for DAAs to obtain prior approval from
DFA to sue, and increases the amount a DAA may agree to settle
a claim without prior approval from DFA from $10,000 to
$100,000.
2)Deletes the requirement for DAAs to obtain prior approval for
any activity it conducts on the property from DGS, and deletes
the requirement for DAAs to obtain prior approval for most
activities it conducts on the property from DFA.
3)Deletes the requirement for DAAs to obtain approval from DFA
or DGS to contract; permits the DAA, with approval from DGS,
to purchase or convey any real or personal property, lease or
license any real property, and make permanent improvements on
property adjacent to a DAA property when the improvements will
benefit the DAA property.
4)Modifies and expands DAA authority to approve most contracts
incidental to the business permitted under the expanded
authority; requires DAA boards to develop written standard
procedures for contracting, including specific procedures for
competitive bidding for construction projects over $25,000 or
other contracts over $100,000 in accordance with state law and
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the Public Contract Code (PCC), and affirmative duties to
prioritize emerging small businesses in DAA business
activities.
5)Eliminates DAAs as state agencies from DGS's requirements of
the purchase or replacement of vehicles or mobile properties.
FISCAL EFFECT
Insignificant costs to DFA and DGS as a result of expanded DAA
authority, potential savings as a result of reduced oversight.
COMMENTS
1) Purpose. According to the author, this bill was developed in
cooperation with the DFA in an attempt to address the fact
that DAAs no longer receive state funds. As a solution, this
bill gives DAAs greater flexibility to conduct their
activities and relieves them of having to require with certain
state laws and regulations with respect to operating their
fairs. The author asserts this bill eliminates many of the
pre-approval requirements for DAAs to procure, purchase, and
operate, raising the dollar limits of many items requiring DFA
and/or DGS approval.
2) District Agricultural Associations. There are currently 54
DAAs, of which 52 are operating. 41 of the DAAs operate on
state-owned properties. DAAs had historically been funded by
a portion of horse racing revenues. In 2009, DAA funding was
switched to the General Fund; however that funding was
eliminated in 2011. Since that time, DAAs have operated
without state funding.
DAAs remain state entities, and as a result remain obligated
to operate under the state procurement and reporting
requirements, even though they are not receiving state funds
for operational needs. The author asserts this is causing
significant hardship for many of the smaller and mid-sized
DAAs, which may have limited or only part-time employees, or
only volunteers to maintain the grounds and buildings.
3) Related Legislation. SB 741 (Cannella), of the 2013-14
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Legislative Session, would make several substantive and
clarifying changes to current law related to the operation,
oversight, and funding of the network of California fairs;
and, contains an urgency clause. That bill is currently on
the Suspense File of this Committee.
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081